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By A D. Caccioppoli

Grade control systems within Rio Tinto Iron Ore have proven to be robust, when mining full benches. The Hope Downs 1 operation hosting two Marra Mamba Iron Formation deposits (North and South Deposits) presents a new challenge, where increased mining selectivity due to moderately plunging N-verging folds has made flitch mining necessary in the South Deposit. Poor flitch blasthole sample duplicate results in South Deposit over a 12 month period, compared to North Deposit, have highlighted concerns with grade predictions. In contrast a new grade control methodology (grade splitting) was proposed to alleviate blasthole sampling bias, utilising geological mapping and mineralogical logging, currently practised throughout Rio Tinto Iron Ore Pilbara operations, to estimate theoretical grades for each flitch from a single blast cone assay. To assess this method, reverse circulation holes (RC) were twinned to blastholes establishing an ‘actual’ grade. These blastholes were assayed using current flitch sampling techniques where: flitch positions were estimated, flitch positions were marked with paint, and a full cone sample was taken for ‘grade splitting’. Using these data sets multiple grade predictions were produced, then analysed using Half Absolute Relative Difference (HARD) statistical analysis. In addition to testing these grade control methodologies two other findings were ascertained: an inherent bias in blasthole assays exists particularly in the top flitch, where an average absolute difference of 0.6 per cent in SiO2 and 0.42 per cent Al2O3 was measured; and assays derived where kaolin rich soft shales are intersected were less representative. This is likely to be due to these materials not being properly represented in blast cones. Grade splitting accurately estimated block chemistry, except for a slight under-prediction in Al2O3 and P compared to current grade control methodologies. This method is a viable alternative where grade distribution is stratigraphically controlled.

Aug 22, 2011

By E Mare

Recent highly publicised incidences of disastrous containment failures, none more pertinent than the 2019 iron ore tailings dam failure in Brumadinho, have focused the world’s attention squarely on the often-challenging subject of tailings storage. Unwanted ultrafines, that are deemed to be unworthy of further treatment or not to have further saleable value, are therefore a significant issue for mine owners looking to reduce risks and perceptions associated with long-term storage of tailings. In this context, there are strong drivers to identify safer approaches to ultrafine tailings management, especially if it can also lead to increased revenue, together with better water stewardship and environmental outcomes. The better management of tailings needs to be considered from both containment challenge and processing opportunity perspectives. This paper focuses on the latter, reviewing from a technical and economic perspective, the feasibility of more extensive processing and/or reprocessing of specifically iron ore tailings, in a bid to reduce the overall volume for management in long-term storage. Herein the opportunity lies in recovery processing, as much as enhanced thickening and/or mechanical dewatering, and therefore the paper discusses both issues as equally important sides of the same coin. Recent interest in iron ore ultrafines processing and reprocessing studies suggests that the enhanced processing of iron ore tailings offers multiple perceived advantages. Apart from a potential reduction in tailings volume, associated with safer containment, lower environmental impact and improved water management, the prospect of increased revenue from additional Fe recovery presents supplementary motivation for iron ore players to embrace this approach, as further elaborated in this paper.

Nov 8, 2021

The perception of New Zealand as an exploration destination has improved compared with other countries. There has been a realisation that New Zealand's potential is greater than previously thought. Other countries are not as attractive as before, and explorers are looking at alternatives that are geologically prospective and politically stable.   New Zealand is regarded as geologically prospective, especially for gold, with potential for world class deposits. It is also prospective for other metals, coal and industrial minerals. New Zealand is politically stable, and has an economy that is attractive to overseas investors. It is one of the least corrupt countries in the world, which overseas companies see as providing a high degree of certainty for investment.   New Zealand has good opportunities for investment in gold exploration at present. Otago has been the focus for new companies and is the favoured exploration location. Otago is regarded as very prospective, and hosts New Zealand's largest gold deposit at Macraes. There is potential for other similar deposits elsewhere in Otago.   The mineral industry previously had an excessively pessimistic view of New Zealand, which has resulted in little new investment in New Zealand for some years. Previous pessimism is turning to optimism, and there is increasing interest in New Zealand as an exploration destination by overseas explorers.

Jan 1, 1997

By A F. von Wielligh, M Scott, L Keeney

Operational Grade Engineering (GE) is the early (pre-processing) discard of low-grade mineralised and/or barren rock to improve the ore grade and/or reduce deleterious elements within the run of mine ore to be processed. GE activities generally have an impact on primary and ancillary mining activities, equipment utilization and overall equipment productivity. By discarding material which would have reported as ore (in a non-GE mine plan) means that GE must increases the total ore and total rock mining rate requirements to sustain mill feed targets. One challenge of GE and the planning of GE activities is that there are several indirect parameters which impact operational productivity. Modelling these potential impacts and determining if they can be overcome with alternate mine sequences, equipment application or possibly a different equipment fleet altogether is a key question requiring investigation. Overcoming these potential productivity obstacles associated with a more complex operation by introducing new operational parameters and destinations for ore and possibly sub-grade blocks, requires a GE mine plan that is coupled with detailed equipment productivity metrics and a sound operational plan incorporating all GE infrastructure requirements. Several GE mine plans and equipment productivity models indicate that mining rates generally need to increase by approximately 5% to 15% to sustain mill targets and often negatively impact equipment unit productivity metrices through increased cycle times, additional queuing and destination changes. These changes to productivity metrics are however offset by step change increases in asset value. This paper details a methodology to develop GE mine plans that incorporate equipment modelling, flexible mine sequencing and equipment-based production scheduling. In addition, the paper will outline impacts of GE planning on equipment unit productivities through worked examples and models.

Nov 10, 2020

By J A. Rowland

When executing a ventilation change the mine ventilation circuit is in a state of flux throughout the entire change period with discrete mine areas both under ventilated and/or over ventilated during the change process. Whilst routine risk reduction strategies such as removing electrical power and people from the mine are commonly deployed it is wise to complete the change in the shortest practical time frame. This not only minimises the chance of unacceptable concentrations of contaminants accumulating around the mine but reduces the impedance on production activities which are routinely suspended during these change periods. This paper firstly highlights the importance of the maintenance of an accurate ventilation model and discusses issues which should be considered to assist to maintain in it a suitable state of health. Further it provides some tips on how to monitor that your model is in an acceptable state of tune so that it can be confidently deployed in the change process. Finally, it details the sequential process how a finely tuned and accurate ventilation model can be utilised to carry out major ventilation changes according to appliance pressure adjustments only and without the need to constantly measure and check resultant branch flows throughout the whole change process. Also discussed are some simple practical tips which will help ensure that the ventilation change process will go according to the devised plan on the day and in the most appropriate order including checking the efficiency and accuracy of the change, after it is completed.

Oct 12, 2022

By R van Wyk

In today’s mining environment the use of heavy mechanical devices and other high-tech electronic devices like two-way radios, cellular phones and even automated mining systems, form a vital part of the daily operations of a mining site. These human-made devices and some of the naturally occurring events, like lightning and gamma radiation, can have negative effects on electronic detonators and the associated control equipment.On larger mining operations the necessity to move the point of safety for blasting further away from the blast area, introduced remote firing via radio frequencies for electronic detonator systems. Other influences on electronic detonators can be abuse or ignorance. To ensure the safety of the end-user, an electronic detonator must be resistant to some common mistakes that users can make. One of main concerns here is resistance to static discharge or incorrect wiring. Despite the daily use of electronic detonator solutions, scepticism and concern still exists amongst those who believe the system raises the risk of a premature initiation of the blast through some form of interference trigger.This paper will help users understand how electronic detonators and the associated control equipment protects itself from external influences. Focus will be on protection schemes to counter static and over-voltage discharge and methods to ensure protection of secure wireless radio links and detonator communications. With well engineered communication systems and solid static and over-voltage protection, an electronic detonator system can be more reliable and safer than other detonator systems. The following main points will be discussed:what makes a detonator an electronic detonator,static electricity and over-voltage protection,the general influence of electromagnetic energy on the detonator,the influence of lightning on detonators,the protection of radio communication’s links as used by remote firing equipment, andthe safety protection features built into remote firing equipment.

Nov 8, 2011

By D Lozada, A Salazar

Geometallurgy is a tool that, for more than a century, has been present in the implicit operations of mineral beneficiation. There’s a need to understand the characteristics of the material to be processed. This has led metallurgists to ask geologists what type of rock and mineralogy is entering the Beneficiation Plant and vice versa. The geologist needs to understand the beneficiation process in order to be able to carry out the production programming. The paradigm is whether geometallurgy can be applied to small-scale mining or if it is only aimed at large companies that invest millions of dollars to conduct studies. With this work, we provide an example of how geometallurgy can help improve the processes of a small mining company located in Ecuador (South America). We performed characterizations of geological and mineralogical and metallurgical tests in universities and the National Research Institute of Geological Metallurgical Mining. The origin of the theme is based on the fact that gold has been detected in the final tailings. The flotation concentrates meet the standards in terms of the content of economically profitable metals, but this isn’t the case with regards to the percentage of arsenic, which has hindered sales. The hypothesis is: conducting technical and scientific research will optimize the metallurgical process for the recovery of gold and concentrates. The referential framework is the mining geology of the Bella Rica District, current status of the Beneficiation Plant. In the theoretical framework there are parameters of the veins, comminution operations, gravimetric concentration, flotation, and cyanidation. The methodological framework contemplates the characterization of the gold ore, the chemical, mineralogical, textural, metallurgical analysis and the interpretation of the results. Thus, the design of a geometallurgy model of the deposit, with its main characteristics, is a conclusion that serves as a basis for the proposal of the optimization of the metallurgical process.CITATION:Lozada, D and Salazar, A, 2018. Geometallurgy applied to small-scale mining: a case study, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 153–162 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By S F. Rogers, K Doumis, J H. Graaf, B J. Barsanti

Advances in technology now allow geotechnical practitioners to better describe the properties and variability of a rock mass through advances in surface and underground mapping, borehole technology and geophysical imaging. Yet the way in which practitioners use this data is not being realised to its full potential and the quality and quantity of data that is collected is often superior to the conventional design approaches that are typically adopted. A discrete fracture network (DFN) approach provides the ideal basis for using this data to generate geologically-realistic rock mass models based on parameters derived from field data, which more effectively capture the variability and rock mass behaviour. However, until recently, the DFN approach has mainly been applied to cave mining and small-scale models associated with synthetic rock mass modelling or groundwater flow modelling for the nuclear waste and oil and gas industries.Ground support design for blocky rock masses in Australia is often dealt with in a rather traditional manner, adopting either an observational empirical approach through rock mass classification systems or conventional wedge stability analysis techniques. Using these methods requires several generalised assumptions about the rock mass fabric and excavation geometry. As such, the support system is often designed for a worst-case scenario based on a predetermined risk tolerance that the mine is willing to accept and a design block size that is generally determined by the proposed excavation dimension.A study by Doumis (2014) used conventional wedge stability analysis and the probabilistic key block analysis software JBlock (Esterhuizen, 1996) to estimate potential block sizes and support requirements. A DFN approach has also been adopted at Callie underground mine using FracMan™ software (Golder Associates, 2014). The methodology of the DFN wedge analysis will be compared with the key block analysis work undertaken by Doumis.CITATION:Graaf, J H, Barsanti, B J, Doumis, K and Rogers, S F, 2014. Towards the implementation of discrete fracture network modelling as a geotechnical design tool – case study of callie underground mine, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 399–408 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By E Widzyk-Capehart, C Hölck Teuber, S Steffen, V Rivero, O Fredes, E Sanchez, I Pedemonte, N Gonzalez

This paper summarises the research, development and initial application of a sensing platform that has the potential to monitor subsurface deformations, pore pressure and other variables simultaneously to gain a better understanding of rock mass behaviour. The platform is based on Networked Smart Markers (NSMs) devices, which, with their ability for wireless communication between individual sensors and the possibility of real-time data acquisition and processing, will assist in the development of predictive tools to better assess rock mass behaviour.A good opportunity to implement this technology is in the specific application of transitioning from an open pit mine to an underground caving operation. One of the key elements to maintaining the mining business during such a transition is having a good understanding of the unique geotechnical conditions of mutual influence created during the open pit to underground interaction. The knowledge acquisition will require the implementation of a robust platform for geotechnical monitoring, which could be enhanced by incorporating the NSMs. The integration of sensors within the NSMs would enable the collection of additional data about rock mass behaviour (ie caving propagation and crown pillar fracturing), which could be used to improve the management of mining operations and, specifically, allow the development of reliable predictive tools based on the data collected.CITATION:Widzyk-Capehart, E, Hölck Teuber, C, Fredes, O, Rivero, V, Sanchez, E, Pedemonte, I, Gonzalez, N and Steffen, S, 2016. Understanding rock mass behaviour through the development of an integrated sensing platform, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 275–284 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By M P. Sandy, J B. Albrecht

"Narrow vein mining can be loosely defined as mining operations involving orebodies with a true thickness of less than 4 m. Some authors have limited the term to steeper-dipping orebodies where the ore will rill under gravity. However, ænarrow veinÆ can also legitimately refer to some of the flatter orebodies, such as many of the platinum, chrome and gold deposits of Southern Africa, and several in Australasia including Bullen (at Norseman), Sunrise Dam, Telfer (Patterson, 1993) and the famous æflatmakesÆ at the Emperor Gold Mine in Fiji (Gordon and Harmse, 1993). Where the orebody dip is less than about 40¦ additional effort is usually required to remove the broken ore, including the use of scrapers, hydraulic monitors or remote-operated excavators (Tombs, Buckingham and Hancock, 2008).Working in such narrow orebodies presents particular operational and geomechanics challenges. A range of mining methods have been developed or adapted to exploit narrow orebodies including:cut-and-fill,narrow vein bench or longhole stoping,Alimak stoping,shrinkage stoping, and methods for shallow dipping orebodies (including Airleg and mechanised methods).The paper discusses some of the advantages and disadvantages of each method with a focus on geotechnical aspects including mining sequence options, stress management, ground support requirements, dilution and recovery.CITATION:Sandy, M P and Albrecht, J B, 2012. An overview of geotechnical issues in narrow vein mining, in Proceedings Narrow Vein Mining 2012 , pp 185-194 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 26, 2012

By G R. Ballantyne, B Putland, I Lovatt, M Di Trento

The Tropicana Gold Mine, owned by AngloGold Ashanti Australia Ltd (70% owned and managed) and Independence Group NL (30%) is located 330 kilometres east-northeast of Kalgoorlie, Australia, in the newly developed Albany-Fraser Orogen. Following extensive feasibility studies, a high pressure grinding roll (HPGR)-ball milling circuit was selected based on the reduced power requirements and thus reduced operating expenses. The HPGR-ball mill circuit was estimated to require 75% of the energy of a standard semi-autogenous grinding (SAG) mill circuit. Even with an anticipated greater capital cost, the HPGR-ball mill circuit was found to give significantly better financial returns in all cases investigated in the feasibility study. A comparison between the specific energy requirements of the HPGR, crush and SAG based circuits (SABC) from the feasibility work was conducted and the HPGR circuit was found to be considerably more energy efficient. A survey was conducted and the efficiency of the HPGR was similar to both the overall circuit design and the HPGR laboratory results, reflecting the accuracy that is possible for design and operation of HPGR circuits.Between 2015 to 2016, the Tropicana circuit has achieved a 20% increase in throughput from 780 to 930 t/h, and this increase has been maintained in 2017. This improvement can largely be attributed to upgrades to material handling processes, increased HPGR speed and smaller HPGR screen apertures. The result of these changes has been to increase the ball mill capacity by increasing the breakage conducted by the HPGR.CITATION:Ballantyne, G R, Di Trento, M, Lovatt, I and Putland, B, 2017. Recent improvements in the milling circuit at Tropicana mine, in Proceedings MetPlant 2017, pp 73–83 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By C Buchanan

For a long time there has been a known relationship between the northern Heavy Mineral (HM) deposits of the Murray Basin to the extensive north east trending ridges in the area. These ridges have been a targeting tool for exploration and have uncovered some significant discoveries, some of which have turned into mining projects. Bemax’s Ginkgo and Snapper deposits are good examples of how the faulting helped create an economic deposit but also result in significant planning issues in the exploitation of these deposits. Material balance, induration and pyrite issues have been made easier to manage through good geological understanding of the deposits.

Aug 22, 2011

By Stewart R. D, Lawrence W, Youl M. J

The trend towards contracting by major coal mining companies such as BHP Coal and MIM Ltd is examined. Reasons why this trend is occurring are discussed and the concept of partnering is examined. Two case studies are given: the Mt Owen Mine in the Hunter Valley, NSW and the South Walker Creek Mine in the Bowen Basin, Queensland.

Jan 1, 1997

By S Brown

With oxygen conditioning routinely used in both the lead and zinc circuits at Pasminco Elura Mine a more sophisticated method of determining oxygen demand was required. It is known that different ore types have different oxygen consumption rates, however oxygen is added at a fixed rate regardless of ore type in the plant. Therefore, a simple laboratory test was devised to measure the oxygen demand of ores. The paper describes the technique employed, and provides an interpretation of the results. These data, together with pulp chemical measurements (Eh, pH and EDTA extraction data) were correlated against laboratory flotation performance to establish the relationship between oxygen demand and the position of the grade/recovery curve.

Jan 1, 2000

By G Harbort, K Quan

Traditional engineering practice for concentrator design uses a mixture of risk minimisation options and capital minimisation approaches. Often this is based on the preferences and experiences of the engineers involved.A geometallurgical approach involves identifying primary lithology, alteration, and mineral dispersion patterns within a deposit to allow representative samples for test programs. This provides a method to infer from laboratory test results meaningful production data for larger amounts of the ore body. Geometallurgical models can be integrated into the resource block model and subsequent mine plan and can assist in predicting when difficulties in the processing route might be expected, allow adjustment of the design to compensate for these or provide an early warning system so that production forecasts can be more adequately developed. Simulation modelling is the process of creating a computer model of a real system based on mathematical logic. In simulated time, the model explores the randomness and chronological sequencing of events observed on real systems. The objective is to mimic the real system with sufficient accuracy to make predictions of real behaviour under experimental conditions. Amec Foster Wheeler often use the ‘discrete-event’ simulation modelling technique. This method is well suited for inclusion of the statistical variation of effects in unit operation, mechanical availability, throughput and operating strategy (based on historical operating data for equipment downtime), operating schedules and equipment capacity. The net result of the simulation model is an analysis that can quantify risks in terms of system performance and capital and operating costs.CITATION:Harbort, G and Quan, K, 2017. Concentrator design – standard engineering practice versus geometallurgy and simulation, in Proceedings MetPlant 2017, pp 195–206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

A thousand writers have harped upon the wondrous nature of the inventive faculty. They realise that man is a creator, and that capital and labour alike are, and will always be impotent without machinery and processes that is invention. What Bacon has said is echoed by them all, "the introduction of new inventions seemeth to be the very chiefest of human actions. The benefit of new inventions may extend to all mankind-they make all men happy without injury to 'any' they are new creations and imitations of God's own works." My remarks will occupy another field I will refer to some of those features of the Patent Laws of different countries, which prevent the use of new inventions, oppress the development or inventive' genius, and diminish human happiness and progress' Wherever Patent Laws are framed and administered upon wrong principles, these results are inevitably found. A concise, complete, common-sense comparison of the chief Patent Laws of the world cannot easily be found but to avoid seeing scrappy, misleading references to Patent Law in the press particularly the English-would be equally difficult. Writers who are considered authorities so frequently make minor issues prominent and so uniformly fail to give weight to fundamental principles that the effect on the public is to mislead.

By A B. Christie, S C. Cox

Effective land-use planning requires accurate knowledge of mineral resource potential. Mineral companies during reconnaissance exploration, feasibility investigations and mine development also use this type of analysis. The Institute of Geological and Nuclear Sciences is undertaking a two-year project reviewing the resource potential of the West Coast of the South Island of New Zealand. Spatial prospectivity models have been developed as part of this resource assessment process, using computer based statistical pattern recognition techniques to delineate areas that are prospective for mineral deposits and to test deposit genesis models. Digital GIS data-sets of mineral occurrence were correlated against geology and exploration information. The distribution of mesotherrnal shear zone gold deposits in the Reefton Goldfield, were examined against geological data-sets from both the regional (QMAP) and local prospect-scale mapping. Weights of evidence analysis generated a correlation matrix that highlights relationships and degrees of association that might otherwise not normally be recognised.   Mesothermal shear zone gold deposits have strong positive spatial correlations with Greenland Group host rocks and areas with moderate to high quartz vein densities; moderate-strong positive correlation with regions <500 m from folds, with regions <600 m from faults and five to eight kilometres from granite contacts; moderate correlations with Ntrending fault and fold segments; and no/weak/poor correlations with fault intersections, fold-fault intersections, bends in regional structures and magnetic and radiometric data. The regional and prospect scale data sets give different results, with the more detailed prospect scale mapping giving generally better correlations. This emphasises the value of detailed geological mapping in the exploration process.   Maps generated by prospectivity modelling consistently highlighted areas of known mineralisation and generate targets where follow-up investigation is warranted. The prospectivity per unit area provides a measurable value that should change as new information comes to hand and, in addition to highlighting targets, can be used to measure the impact of increased exploration expenditure and assess the effectiveness of exploration investment.

Jan 1, 2001

There is considerable variability in the level of detail incorporated in prefeasibility studies relating to mining developments. Hence, when undertaking a review or audit, it is critical to attempt to ascertain at an early juncture precisely who has compiled the various facets of the study, for what purpose it was intended and the terms of reference given to the authors. Likewise, when commissioned to undertake an audit it is preferable to have proper terms of reference and to be aware of the purpose to which the audit will be put.These factors will influence the degree of detail an auditor would expect to find in the study and consequently, the degree of effort/time required for the audit process. In most instances audits do not imply recalculation of the entire study or modifying it in anyway, but involve an overall assessment of the methodology used, combined with spot checking of detail. One of the most difficult aspects is to determine a realistic order of accuracy for the overall study when the accuracy of the individual components may differ markedly.

Jan 1, 1990

By A Hekmat, R Castro, A Casali, R Gómez

Block caving is the most economic underground methods for excavating massive orebodies, due to the high productivity and low production costs. The success of block caving operations depends on the fragmentation and draw control as large blocks decrease the equipment efficiency, inhibit the material flow and may lead to expensive secondary blasting. Even though ore handling system design, as well as overall economic results, both critically rely on secondary fragmentation, this parameter continues to be one of the least understood issues in the caving operations.This research focuses on the experimental study of secondary fragmentation, considering the impact of vertical pressures and material flow. Experiments using a load-haul-dump extraction system were conducted under laboratory conditions to quantify the influence of pressure and particle size on secondary fragmentation. Results demonstrate that increasing the vertical pressure (simulating deeper conditions) leads to higher fragmentation (smaller particle size) and greater fines generation during draw. The experimental results were applied to calibrate the developed mathematical model based on kinetic matrix. The acceptable accordance between the comminution model results and the reality showed that this method is convenient in predicting the secondary fragmentation in block caving.CITATION:Castro, R, Gómez, R, Casali, A and Hekmat, A, 2016. Experimental and comminution model framework for secondary fragmentation prediction in block caving, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 175–182 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

Standards in the public reporting of resources and reserves in Australia have dramatically improved since the implementation of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (The JORC Code) in 1989. Whilst the JORC Code states clearly that Mineral Resources and Ore Reserves are imprecise calculations and should be treated as estimates, there is strong evidence that many people regard them as fact, including some accountants, directors, auditors and investors. Mineral Resources and Ore Reserves are key inputs in the valuation of a mining company and the determination of financial performance. Geological knowledge is the foundation upon which Mineral Resources, Ore Reserves and investment decisions are made, however this information carries with it substantial uncertainty. Case studies and company reports have established that errors derived from inadequate geological inputs have led to reduced profitability in operating mines and in extreme cases the premature closure of mine operations. Whilst there are many causes of mine closure and reduced profitability, including commodity prices and exchange rates, the cumulative effect of all geological uncertainty contributes significantly to the erosion of the credibility of mining within the investment community. There are a number of methods used to characterise and model uncertainty in Mineral Resource and Ore Reserve estimation. Empirical mining indexes, sensitivity analyses, Monte Carlo simulations and Conditional simulations are used to identify and estimate geological uncertainty, notably the quantification of uncertainty in grade and tonnage estimates. These techniques have not generally been applied to estimating geological uncertainty associated with key Ore Reserve inputs such as appropriate mining technique, equipment selection, production rate, mining dilution, stability requirements, materials handling, metallurgical processing, product quality and waste storage. New software tools are needed to model the entire mining process with all its geological and other interdependencies, enabling all uncertainties to be separately identified and estimated. By its very nature, mining involves the assumption of significant technical, financial, political, environmental and social risk. Success comes by understanding and managing these risks and consequently the mining industry will never choose to reduce the level of geological uncertainty to nil. The ultimate aim of improved identification and estimation of geological uncertainty is to quantify inputs into the Ore Reserve process, allowing a company to assess the risks and manage these accordingly. This approach is relevant to feasibility studies for new projects as well as life-of-mine planning through to the weekly schedule at existing mines.

Jan 1, 2003