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By T Leach, F Kaiqiang

The Jianchaling gold deposit is located about 1200 km south west of Beijing in central China. The deposit was discovered in 1988 by the Northwestern Geological Exploration Bureau (711 Exploration Team). Sino Gold Limited, an Australian based company, developed the mine in 1998 and is currently operating a 1000 t per day underground mine, producing about 80 000 ounces of gold per year. The pre-mine resource for Jianchaling was 1.6 million tonnes at 9.85 g/t gold. The deposit occurs within the east-west trending Mesozoic Qinling-Dabie orogenic belt formed during the Yanshanian Orogeny. In the Jianchaling region, gold mineralisation is primarily hosted by regional west-northwest to east-southeast striking faults, the most important of which, the reverse sinistral F145 fault, hosts the larger gold deposits including Jianchaling. At the mine scale, the most important zone of mineralisation is localised within a shallowly north dipping dilation on the F145 fault. Proterozoic dolomite forms the hangingwall and serpentinite and talc schist the footwall to the fault. Within the footwall, serpentinite is the most important host rock to mineralisation. Initial alteration involves replacement of serpentine to dolomite ¦ pyrite, talc to ankerite ¦ pyrite, and magnetite and chromite to pyrite, the latter locally through a transitional hematite phase. Proximal to feeder structures, the carbonate minerals have undergone partial dissolution and replacement to quartz. Gold is related to arsenean pyrite and marcasite rimming and replacement of early-formed pyrite, and associated with iron release during the processes of dolomitisation, silicification and carbonate dissolution.

Jan 1, 2004

By J Benn, V Kuznetsov, G Timms, A Spain

Earthen covers are now widely used in the mining industry to control the generation rate and/or release rate of low quality drainage from piles of sulfidic minewastes. Covers are usually designed to reduce the water infiltration rate and in some cases may also reduce the oxygen flux to the underlying sulfides. Engineered covers have only been used since the 1980s, however, and there is very little field data on their performance in the longer term. This lack of information has implications for the degree of confidence that can be placed on the predictions of the environmental impacts of sulfidic minewastes, for the acceptance of close-out criteria by regulatory authorities and for the financial liability of the mining industry. Covers were placed on sulfidic waste rock dumps at the abandoned Rum Jungle uranium mine during 1984 - 1985. These covers were designed to reduce the water infiltration to less than five per cent of incident rainfall by both water shedding and storage-release mechanisms. Regular monitoring by the Australian Nuclear Science and Technology Organisation (ANSTO) demonstrated that the covers performed better than the design criterion for around ten years, but infiltration rates have subsequently increased. There is a 66 per cent probability that the infiltration rate now exceeds five per cent of incident rainfall. The cover on the largest pile, WhiteÆs heap, was sampled in pits dug at eight locations. Sampling was carried out at the end of the monsoonal wet season and again at the end of the ædryÆ season. This, together with laboratory testing, enabled cover performance to be assessed against five criteria: design, construction, cover material characteristics, physico-chemical characteristics and biological characteristics. We are of the opinion that the design of the cover was suitable to achieve the objectives of stability, water shedding, storage-release, and provision of a substrate for vegetation growth. Over most of the surface of the heap, the construction of the covers, drains and erosion prevention structures was in accordance with design specifications. However, several small and localised bare patches on the upper surface of WhiteÆs heap coincide with a reduced cover thickness, which is likely to have been due to poor construction in those patches. The construction of covers on minewastes is dependent on an adequate source of material meeting design specifications. From our limited examination, it appears that there was shortage of material for each of the three zones û a lower impervious clay layer, the moisture storage-release layer and the upper erosion-resistant layer for vegetative growth. An indication of this was that the upper layers in some areas were observed to be thinner than specified. We are of the opinion that this shortage of suitable material has been responsible for some of the changes observed ten years after emplacement. Physical and geotechnical testing indicated that the cover materials no longer meet the original specifications. In particular, the permeability at the 8 locations was found to be greater than specified, by up to several orders of magnitude. The higher permeability may explain the higher observed rainfall infiltration and moisture content of the waste rock. This increased permeability appears to be due to a combination of biological and physical processes û galleries formed by termites and ants and an extensive system of shrinkage/desiccation cracks formed by the development of a polygonal blocky structure involving the entire lower clay layer. The desiccation cracks may fill with coarser illuviated materials and form a conduit through which roots access the underlying waste rock. Measurements were made of oxygen flux into the heap as cover layers were excavated in the pits. They indicated that the full cover currently reduces the oxygen flux to 20 - 23 per cent of that into bare waste and that this reduction seems to be proportional to the cover thickness. It was also found that the oxygen flux into the cover is about four times higher at the end of the dry season than at the end of the wet season and that the difference is due primarily to the difference in moisture content of the cover. Recommendations are made for the design and construction of covers.

Jan 1, 2003

By I Neilsen, A Walker, A Hooper

Final landform planning in Deswik software was used to determine if integration into the mine plans could achieve better closure outcomes. Using the dump surface outputs from the Deswik Landform and Haulage Simulation (LHS) and the Reshape Landform tool, the project intended to:1.Review costs to achieve the final landform for several grade criteria scenarios;2.Quantify reshape volumes at several stages of the mines development with the objective to contribute to margin ranking inputs; and3.Identify rehabilitation cost reduction measures such as backfilling ramps and pits.CITATION:Neilsen, I, Walker, A and Hooper, A, 2018. Case studies for integrating rehabilitation planning with mine planning in strip mining, in Proceedings Life-of-Mine 2018, pp 93–95 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 25, 2018

Two small coral islands in the Pacific Ocean, situated close under the equator, and formerly classed among the Line Islands, have, during the last three or four years risen into prominence owing to the valuable deposits of phosphate of lime discovered on them.The deposits of Ocean and Pleasant Islands are under the control of the Pacific Islands Company (1902) Limited, of London and, Sydney, and the high grade of the phosphate, together with the exceptionally favourable facilities for mining this mineral, of which there are several millions of tons on these islands, give this company advantages which enable them to command the Australian and New Zealand markets, and also to make large contracts with Japan and other countries. Both islands, as far as surface indications are concerned, are entirely constructed of coral, with phosphate on the top from the highest points to the present sea level, there being no sign of volcanic rocks, with the exception of a few pieces of drift pumice on the coast.Banaba (Paanopa according to. the Admiralty charts), also known as Ocean Island, was discovered in 1804. It is situated in lat. 0° 52" S. and long. 169P 3[)" E.

Jan 1, 1904

By K Shannon, A Shaw

The Hilton and George Fisher deposits occur 22 and 24 km north of Mount Isa, NW Qld, Australia respectively. Both deposits occur as deformed Proterozoic, sediment hosted, stratiform orebodies hosting Pb-Zn-Ag (Hilton) and Zn-Pb-Ag (George Fisher) mineralisation. The two deposits are separated by approximately 2 km of strongly faulted barren shales, mudstones and siltstones along strike. Despite this, correlations between the Hilton and George Fisher deposits have previously been assumed on the basis of textural, lithological and geochemical similarities, but previously lacked specific details to prove exact stratigraphic matches.Feasibility drilling allowed broad correlations based on the position of siltstone pillars separating individual orebodies. However the position of continuous potassium-rich, siliceous and cross-fractured tuffaceous marker beds (TMBs) often used as stratigraphic markers within the Hilton Mine were initially unrecognised within the George Fisher stratigraphy where they are erratically silicified and often not cross-fractured resulting in correlations being difficult to prove. As a more detailed knowledge of TMB locations at George Fisher was gained it was possible to look for corresponding TMBs within the Hilton orebodies. Recent underground stope definition drilling at the two locations enabled specific TMBs, stratigraphic units and even individual sedimentary beds to be matched between the two locations, despite the large separation between mines.The correlation between the two deposits has implications for future exploration drilling north of George Fisher. If a specific stratigraphic horizon can be determined within one hole, positioning of further drillholes can be more accurately planned. The significance of having stratigraphic matches between Hilton and George Fisher also has implications for correlations with other Isa Valley deposits. Convincing preliminary TM and stratigraphic correlations have already been made between George Fisher and the Isa Lead Mine 24 km to the south.

Jan 1, 2002

The widely accepted kinetic model for the gaseous reduction of hematite is critically examined. The formation of the wustite layer during internal reduction cannot be explained in terms of solid-state diffusion. Present evidence indicates the existence of a micropore system in the wustite adjacent to the magnetite with the gas/solid type of reaction occurring not only at the iron/wustite interface but also at the wustite/magnetite interface. During the partial reduction of dense hematite pellets, in a controlled atmosphere, porous magnetite and wustite are formed as products. The mean pore size, as measured by mercury injection, increases with time at constant temperature and with temperature increase over the range 6500C to 950°C. The sizes of the pores indicate that Knudsen diffusion is the principal gaseous transport mechanism across thick layers of magnetite or wustite.The kinetics of the gaseous reduction to iron are consistent with a mixed control mechanism involving the interaction of gaseous diffusion effects with a first order reversible chemical reaction at the iron/wustite interface. Because of the larger pore sizes in the iron layers, ordinary molecular gaseous diffusion must be the principal transport mechanism. The usual experimental methods used for establishing the validity of chemical rate ~ontrol are incapable of differentiating between the mixed control- mechanism and exclusive chemical control.Some implications of mixed control kinetics are developed, including a predicted independence of rate on reducing gas pressure at higher pressures.INTRODUCTIONAn extensive literature review of the reduction of iron oxides has been compiled recently by Themelis and Gauvin (1962). From the large number of papers published and the widely divergent opinions of workers in this field, it appears that a simple unified quantitative analysis of reduction kinetics is not possible. The aim of the present paper is to show that a major cause of confusion is due to the attempts of many workers to interpret experimentally observed reaction rates in terms of a single rate controlling mechanism without due regard to other rate processes which must occur simultaneously.Some of the differences in behaviour reported for particles...

Jan 1, 1964

The Heavy Media Separation plant operated at Lidsdale siding, eight miles from Lithgow, by the N.S.W. Mining Co. is a product of the Western Machinery Company, of D.S.A.This mill, designed to use finely ground magnetite as the heavy medium, was prefabricated in America and shipped to Australia for erection.First operated early in December, 1951 it has worked on a two-shift basis since. Designed for an input rate of 330 tons per hour, this mill is capable of washing 4 in. x /u in. coal down to its inherent ash by removing all heavy material, including high-ash coal.The principle is quite simple. A stream of raw coal is fed into the separatory vessel which contains a liquid medium, the density of which is adjusted to produce the desired split between coal and refuse. In this bath the lightest coal floats, and all material heavier than the specific gravity of the medium sinks, and is removed separately. Such a system is,. ideally suited to Western coal, as there is no definite splitting point between coal and refuse. Inherent ash of the coal fed to the plant ranges from 8 to 25%, the corresponding density range being from 1.28 up to 1.8.Generally speaking, the higher the density the higher the ash content of the coal.The density in the separatory vessel (hereafter called the cone) can be quickly and easily adjusted throughout the above range to any desired value. Customer requirements, coupled with the economics of washing, dictate the proper specific gravity to be maintained. At present this is held at 1.52...

Jan 1, 1954

By T S. Giraudo

The Macraes Gold Project, operated by GRD Macraes Limited, engaged GRD Minproc Limited to assist with the evaluation of a pressure oxidation circuit, this being the key component of a recovery enhancement project. The initial study gave sufficient confidence in the process to enter into project execution. GRD Macraes Limited was the first company to license Newmont Mining Corporation's pressure oxidation technology, which aims to improve gold recovery from the carbonaceous sulfidic flotation concentrate. This paper outlines the fundamental chemistry of the process followed by a description of the plant that was ultimately installed. A summary of the commissioning is given together with an overview of the production results to date. The project ramp-up was rapid, with design temperature and throughput being achieved within days of hot commissioning. Gold recoveries have exceeded expectations, improving from around 70% prior to the installation of pressure oxidation to above 84%. The project has increased the nominal gold output at Macraes from 120,000 oz/y to 170,000 oz/y. On-going plant optimisation for process parameters is discussed, giving rise to flexibility in gold production, with key controlling parameters exceeding design.

Jan 1, 2000

In mid-1998 Atlas Copco Rock Drills AB introduced the first member of a new family of drill rigs. This new family, Rocket Boomer L1C/L2C/L3C, is based on modern computer technology and also on what is characterised as information technology. The design of the drill rigs are modularised both in hardware as in the software. This means that the functionality of the drill rigs is upgradable step by step. Added upon the basic drill rig functions are the new options as ABC Regular (known also as Contour Control), ABC Total, drillplan generator and communication products. The main objectives of these functions are to facilitate real quality drilling.

Jan 1, 2003

By K Ehrig, J Griffith

An extensive suite of elements are routinely assayed on all resource drill core samples to assist in deposit scale resource definition, local mine scale delineation of ore zones, and ore characterisation for the planning and scheduling of mining and processing of ores at Olympic Dam. This paper discusses a deposit scale geochemical relation that can be used by mine geologists to find more high-grade ore at the local mine area scale at Olympic Dam.A 3D grade shell representing 0.8 per cent Cu was created for a mine area using drill hole assay data. This defined the geometry of the ore zone. The Cu-grade shell was then overlain onto the existing resource block model to evaluate the relationships between the Cu-grade shell, copper and other elements. The strongest correlation was between copper and manganese. The block model showed a dramatic decrease in the concentration of manganese just below the below the Cu-grade shell.Several drill holes that intersected the Cu-grade shell were selected to evaluate the copper manganese relation at the drill hole scale. As expected, the individual drill holes displayed a strong inverse relation between copper and manganese. A geochemical footwall was then modelled representing 0.1 wt per cent Mn. Using both the Cu– and Mn-grade shells, several drill holes were designed/drilled and all hit high-grade copper.For the vast majority of the deposit the inverse relation between copper and manganese is valid; however, in areas with intense chlorite alteration (related to amounts of mafic to ultramafic rocks) this relation is not as strong, due to increased manganese in the rock mass. Even though using the copper manganese relation as a drill targeting method was not always as reliable in a few small areas of the deposit, it demonstrates the value of using existing assay data integrated with the resource block model to discover local mine scale geochemical relationships which can be used to more effectively design drill holes to discover high-grade ore at Olympic Dam.CITATION:Griffith, J and Ehrig, K, 2017. Using existing data to improve the delineation of ore at the Olympic Dam Fe-oxide Cu-U-Au-Ag deposit, in Proceedings Tenth International Mining Geology Conference 2017, pp 321–326 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

THE following notes were accumulated during the years 1905 to 1911, when the writer was employed at Stannary Hills. The writer's duty took him over the underground workings daily. In odd moments the geology of the surrounding country was worked out. As the time for this purpose was limited, many interesting points had to be left, untouched. The faulting system in the mines was of such a puzzling character that it seemed as if the geology of the surrounding district might throw some light on it. Dr Jack, in 1907, reported on these mines for the shareholders, but came to no definite conclusions. Unfortunately, the writer has not had access to this report for many years. At the time of his visit the larger develbpments in the Ivanhoe and, Kitchenen orebodies (see Fig 1, B2) were only being opened up. Mr. H. Herman mentions Stannary Hills on p 320, Proceedings Aust Inst ME, new series, No 14, and on p 326 expresses the opinion that the pipe or joint-veins (as at Irvine bank and Stannary Hills) were more valuable to follow than lodes in the granite in that district.GEOLOGY OF DISTRICTThe main feature of the area mapped is a band of altered sedimentary rocks which carry no fossils. It is a mile wide, and consists of a hard band of greywackes 200 ·t ·300 yds. wide, flanked on both sides by contorted shales which become more micaceous as the granite-area to the east is approached. The strata have a general strike of N. 30° W., with a steep westerly dip. A large area of acid intrusive rocks occurs to the west of this band. The outstanding feature of the district is a fault which cuts the sedimentary series in two, to the...

Jan 1, 1918

By Morrison R

Optimisation has two distinct applications in the concentrator ò the first is in the area of the flowsheet and the operating parameters of the various unit operations ò the second is associated with the higher levels of process control. The Plant Metallurgist is faced with a library of complex theories relating to optimisation. The practical reality of optimisation lies in a combination of steady state simulation to ensure that the process route will permit maximum productivity and an appropriate process control system which will permit achievement of the production and quality objectives.

Jan 1, 1991

By Sofoulis J

In the Archaean of the Kalgoorlie-Norseman area, the layered rocks have been subdivided into two sequences, both containing basic igneous rocks and sediments. The lower sequence is distinguished by the presence of acid volcanic flows and large acid sills. The upper sequence is unconformable on the lower one.In some areas, clastic sediments become coarser and pass into conglomerates. Th:s passage is accompanied by thinning of the beds.These features and their distribution suggest a basin of subsidence flanked by areas of shore-line conditions.Repeated igneous activity, including vulcanism, has occurred along the flanks of this basin. These different igneous and sedimentary environments have played an important part in the primary distribution of metals.A chronology of all basic and acid igneous activity, as well as sedimentat:on, has been established for the Precambrian of this area.INTRODUCTIONThe subdivision of Archaean rocks into those of basic igneous or of sedimentary origin has formed the basis for the nomenclature appearing in past literature. These subdivisions were distinguished as greenstones (predominantly basic igneous rocks) and whitestones (predominantly sediments), and it was generally accepted that the greenstones were stratigraphically lower in the sequence than the whitestones.Recent studies show that, between Kalgoorlie and Norseman, basic igneous rocks interfinger with and pass laterally to sediments, and that basic volcanic rocks occur at different stratigraphic levels. Younger Precambrian. units are also...

Jan 1, 1965

Factors leading to the necessity for some individual testwork in solving most specific hydraulic transportation problems are listed and a description is given of a method used in determining critical flow conditions. An outline is given of the basic theory of the purpose of the testwork, and a means of applying test results for varied pipeline diamet.er and material conditions follows. Engineering and economic factors are applied to the solution of a specific hydraulic transportation problem and the use of the test results in plant practice is illustrated. The advantages of connecting pumps in series in centralised pumping stations rather than individually along the pipeline are stressed. Some notes are added on the future possibilities and economies of post pump injection of solids into high pressure pipelines.THE HYDRAULIC TRANSPORTATION OF SANDSAs well as all the classical variables involved in a pipeline installation, one must consider, when solids are to be transported, the effects of such variables as:(i) Proportion of solids in the pulp.(ii) The average specific gravity of the pulp.(iii) Specific gravity of the solid material.(iv) Solid particle average sizing and possibly shape.(v) Solids particle grading.(vi) Pipeline diameter for effects other than classically hydraulic.(vii) Pipeline material.(viii) Fluid viscosity.(ix) Pump characteristics.(x) Abrasive or corrosive properties of the pulp.Not surprisingly, the application of published data to the hydraulic transportation of a specific material is difficult if not well nigh impossible. Most hydraulic transportation investigations also involve economic and site factors vary...

Jan 1, 1959

Rational decision making is generally perceived by managers of operations to be a delicate process of committing large sums of money and putting other people's life at risk. Consequently most managers may argue that the decision process requires good judgement, intuition and extreme caution; and not one easily made through the use of fancy mathematical algorithms and computer programs. The advent of artificial intelligence and expert systems in the computer industry combined with recent technological innovations in mathematical and economic problem solving is sure to change this perception. PARETO OPTIMALITY is an economic and a mathematical optimisation concept applied to solving real life operational problems; and one that the current volatile economic forces would require managers to employ because it is virtually real. REALISMM is a computer software package developed using the principles of Pareto optimality, dynamic programming, optimal clustering of information and decision maker interaction to generate decision maker preferred solutions. REALISMM has scope for artificial intelligence and expert systems application for cases where the decision maker is unsure about his objective preferences.

Jan 1, 1993

By Henderson N, Schaap H

In large companies with mining operations spread over multiple sites, it is essential that consistency between sites is maintained in preparing and classifying resource and reserve estimates. The endorsement by The AusLMM and AMIC of the "Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves" and the subsequent incorporation of reference to the code into the ASX listing rules for mining companies has provided a basis for the consistent classification of resources and reserves. However, compliance with other criteria more or less stringent than the Australasian Code can present some reporting difficulties. Examples include listing requirements for foreign stock exchanges, particular Acts of Parliament that may apply to individual leases, constraints imposed by individual companies on their own leases, and ultimately, reserves for short, medium and long term planning. Confusion can arise when any two or more sets of reserves for the same lease are compared.. To alleviate this confusion, a standardised procedure was developed for the calculation and classification of coal resources and reserves. The procedure which is geostatistically based incorporates a technique called "Irregular Block Kriging" where specific mining blocks are directly kriged. The procedure has enabled those engineers and geologists with only a basic understanding of geostatistics to apply the technique and not feel hampered by some of the complex mathematics which in the past has tended to inhibit and overcomplicate the use of geostatistics. The procedure has resulted in "cleaner" data bases and hence more reliable reserve estimates.

Jan 1, 1990

By McGill RA

The Ranger Uranium Mine is surrounded by a World Heritage National Park. The strict environmental controls under which the mine operates are based on scientific and social requirements. Release of non-process storm runoff water to the Magela Creek during flood discharge and under controlled conditions has been identified as Best Practicable Technology for the operation of the water management system. Social and political factors have limited this release to a wet season with an Annual Exceedance Probability of one in ten. The first-generation trigger mechanism was based on a percentile analysis of monthly rainfall. The second-generation trigger is based on cumulative monthly volume increase in the retention ponds and is considered to be more applicable to the operation of the mine water management system.

Jan 1, 1988

By Robinson T

The paper describes a spreadsheet system that enables selection of projects and companies that meet the user's corporate exploration and/or acquisition philosophy. A regularly maintained commercially available database has been used as the basis for this system. It provides an easily accessible efficient com- prehensive search method. The technique enables ranking by various criteria, both technical and financial, to provide groups of projects/companies that are of interest. Initially, target size parameters such as reserves, production and mine life are applied together with geological criteria such as age and deposit type; the significance of the targets in the context of the Australian gold industry is addressed.

Jan 1, 1988

By E Acu±a, B Prosser, R Alvarez, K Wallace

This paper describes the ventilation analyses performed for the access tunnels at the New Level Mine project (NLMP) at CodelcoÆs El Teniente operation outside of Rancagua, Chile. This new mine is anticipated to reach a final production of between 137 and 180 kt/d. Production from the NLMP is scheduled to start in the year 2017. The main access tunnels (MAT) are approximately 9 km in length, with one for personnel and supply access and the second one for ore extraction through a conveyor system. These two tunnels are a critical component of the initial stage 1 development and will be constructed independently of the existing mine workings. The tunnels were originally designed to be constructed with two tunnel boring machines. However, later analyses changed the construction approach to a conventional drill and blast technique. Because the design included two mid-tunnel ramp-to-surface connections, conventional mining methods would allow for development of the tunnels with multiple working faces to achieve a more rapid schedule. This paper presents the initial baseline considered for the ventilation design and the optimisation methodology applied by Codelco to minimise the airflow and pressure requirements of the ventilation system. Modifications to the design resulted in the addition of strategic airways and raises that could provide a saving of approximately 1 MW, when compared to the original design.CITATION:Acu±a, E, Alvarez, R, Wallace, K and Prosser, B, 2013. Ventilation considerations for the new level mine project access tunnels, in Proceedings The Australian Mine Ventilation Conference , pp 203-206 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By M Skead, H Michael, R Chase, A Davidson

Ashanti Goldfields CompanyÆs (AshantiÆs) most recent development is the Geita Project in the Lake Victoria Goldfield of NW Tanzania. It comprises six distinct gold deposits within two mineralised trends: Nyankanga, Lone Cone, Geita Hill (Geita trend) and Matandani, Kukuluma and Area 3 West (Kukuluma trend). Between 1936 and 1966, the Geita area produced an estimated 5.5 M tonnes of ore from five underground deposits at an average recovered grade of 5.3 g/t. The discovery of Nyankanga was made by Ashanti in 1996 from RAB drilling of a +100 ppb Au anomaly in laterite soil above ferricrete cover. The Kukuluma trend was discovered by SAMAX Resources (taken over by Ashanti in 1998) between 1996 and 1997 from RC drilling of a +80 ppb Au laterite soil anomaly. Oxide facies banded iron formation (BIF) of the Upper Nyanzian System forms prominent topographic ridges and is the dominant host lithology for gold mineralisation. The ridges are flanked by felsic tuff units which lie stratigraphically above. Syn-genetic lamprophyre (vogesite) and post-genetic felsic dykes are also seen in the Geita trend. At Nyankanga a granodiorite-diorite suite has intruded as dykes and sills into BIF from a plug centred on a WNW fault and has produced wallrock alteration assemblages similar to those seen in Cu-porphyry systems (potassic, propylitic, etc) as well as sulphide and gold deposition. However, the main ore-grade mineralisation (as in the rest of the Geita trend) is controlled by low-to-medium angle structures dipping north-west and north with numerous splays in the hanging wall. High-grade shoots at Nyankanga plunge to the west and to the north-west, being lithologically and fault-controlled respectively. At Geita Hill the higher grade shoots are controlled by fold noses in BIF dipping to the north. Free gold occurs within fractures of sulphides. The deposits of Kukuluma and Matandani occur on an ancient (possibly Cretaceous) erosional plateau and are related to two WNW to NW trending shear zones, discordant to the local strike of the BIF sequence. Complete oxidation occurs up to 120 m depth and there is a strong supergene component to the gold distribution. Primary gold mineralisation is divisible into two distinct assemblages: arsenopyriteûpyrrhotiteûmagnetiteûchlorite associated with brecciated cherts and pyrite associated with shaley banded ironstones. Area 3W is most likely the fault-displaced extension of the same mineralised trend and comprises thin, intermittent zones of high-grade gold mineralisation occurring adjacent to a ridge in banded cherts and minor BIF. Current resources (measured, indicated and inferred) for the project are estimated at 89.24 Mt at an average grade of 4.17 g/t (11.97 Moz of contained gold) at a 1.0 g/t cut-off grade. Of this 9.83 Moz is within the Geita trend and 2.14 Moz is within the Kukuluma trend. A resource of 2.74 Moz is from an inferred resource at depth at Nyankanga where the viability of an underground operation is being studied. Proven and probable reserves are 49.77 Mt @ 3.46 g/t (5.54 Moz) based on a $325/oz gold price providing a mine life of ten years at an average production rate of 500 000 oz per year. Reserve estimation was carried out using mineable polygons to select resource blocks based on a series of mining and costs parameters. In addition key cost parameters were tested to provide sensitivities for pit optimisations and pathfinders for negotiations with suppliers and contractors. Construction began in March 1999 and first gold is expected to be poured in the second-quarter 2000.

Jan 1, 2000