Search Documents

By Paine G. G

The Red Dome Gold/Copper Mine is located approximately 15 km west of the township of Chillagoe which itself is approximately 220 km by road west of Cairns, Far North Queensland. The deposit, with other mines in the Mungana region, was worked from about 1901 to 1927. Exploration by Amoco Minerals Australia in the 1970s and early 1980s outlined a geological resource of 15 million tonnes. A mining reserve of 9.3 million tonnes was identified and originally developed by Elders Resources Limited. The mine commenced operations in March 1986 and was the first large-scale gold project in Australia to be developed solely on the heap leach process. The mine operated successfully as a gold heap leach operation until 1989 when new grinding, flotation and carbon-in-leach plant facilities were installed to process the non heap-leachable component of the orebody including the copper rich -ore. In March 1991, Red Dome Pty Ltd became a wholly owned subsidiary of Niugini Mining Limited. After six years of successful operation and having excavated a 200 in deep pit, it became evident in 1992 that unless more open cut reserves could be identified the operation was limited to six to nine months of high grade ore and a further 15 months of low grade stockpile material. A preliminary feasibility study was carried out to assess the viability of deepening the open cut. This indicated that from a technical and financial point of view it was possible to expand and deepen the open cut. This presented the daunting challenge of developing a 300 in deep, single access, open cut between a high chert ridge, a government railway line and a National Park. The meeting of this challenge is the subject of this paper.

Jan 1, 1994

The modern Golden Cross mine entered the production phase in January 1992. The project is designed to produce over 100 000 oz/yr of gold and over 300 000 oz/yr of silver during a mine life of eight years. An open pit and an underground mine are operated producing around 850 000 t/yr of ore, to feed a conventional carbon-in-leach processing plant. Golden Cross is owned in joint venture by Coeur Gold New Zealand Limited (80%) and Viking Mining Company Limited (20 %).   Since the start of production several major aspects of the design have altered. The underground mine began as a mechanised cut and fill operation. The cut and fill stoping progresses in 3.3 m flatback lifts with maximum stoping width of 6 m. Where the ore zone is wider than 6 m a post pillar cut and fill method is used. In 1993 a new bench mining plan was introduced between the 270 and 260 levels. Flatbacking continued in the footwall drives in anticipation of variability of the ore width and orientation. The development of levels below the main service 200 level has indicated a possibility of bulk mining the ore block rather than flatbacks. This could lower mining costs but also introduce higher dilution rates. Development is in the advanced stages for trialing this method.

Jan 1, 1994

In 1989 Henry Fairlie wrote a cover story for The New York Republic, 'Fear of Living'. He noted, `The first Apollo space craft caught fire during a test on the launch pad. Three astronauts were killed, the nation was shocked and horrified, all the more because the screams and scrambles of the astronauts could be clearly heard'. After a brief delay in manned flights, the Apollo program resumed with strong public support; within 18 months, Apollo 11 landed on the moon. Fairlie contrasts the Apollo tragedy to the 1986 Challenger disaster. `The prevailing mood in America so panicked NASA that it took almost three years to send up another shuttle', he observed. `In 19 years between these tragedies, the idea that our individual lives and the nation's life can and should be risk-free has grown to be an obsession threatening to create an unbuoyant and uninventive society.' Taking risks is a normal part of our daily routine. The act of living involves minute-by-minute decision-making focused on survival through the practical management of risks. The act of breathing exposes each individual to the risk of infection while the act of crossing the road could almost be considered suicidal. We deal with these constant threats by observing simple rules of hygiene, safety or what may be labelled as common sense. The rules of community, designed to minimise risk in society, can at times lose focus and result in the imposition of schemes that have a far greater cost than the issues from which they protect. Effective management of risk, whether in the community or a business is about awareness and balance and the elimination of unacceptable risk. Risk cannot be eliminated from our lives or our working environment. However it can be managed if it is properly understood, monitored and controlled. The purpose of my presentation today is not to provide a comprehensive technical risk inventory but to capture the essence of risk and the application of management strategies designed to deal with it in a positive fashion. The basis of our differential financial reward system is risk. The key to successful management is to deal with the downside risks in such a fashion that the benefits of enterprise are not eliminated. The key question any investor must consider is `can the major risks assQciated with a venture be managed or eliminated while retaining a greater proportion of upside potential'. The answer to this question is the ultimate value an investor would assign to any project. In reviewing the relevance of risk to our industry the range of papers to be presented today provide examples of how management deals with specific components of risk. In each case the value of the business has been enhanced by the practical application of balanced risk management. The ultimate success of the industry depends very much on this concept as it also provides a public showcase upon which we are judged. Therefore, from all perspectives the effective management of risk is a cornerstone from which to build a stable and progressive mining industry.

Jan 1, 1994

Edie Creek is located in the Morobe Goldfield about 17km by road from Wau in the Morobe Province of Papua New Guinea (PNG). Four distinct periods of mining development have occurred since discovery of rich alluvials in 1926. During the two years following discovery, individual expat-riate miners with gangs of native labourers mining rich alluvial gravels dominated the field. After the discov-ery of hardrock mineralisation in 1927, companies accumulated leases and devel-oped extensive underground mines and mechanical processing plants at Day Dawn Mine and Edie Creek/Karuka Mine between 1929 and 1942. After the Second World War, the underground operations were not re-opened, and mining activ-ities mostly concentrated on working alluvial and eluvial deposits. From 1962 onwards, Papua New Guinean miners became increasing producers as company activities declined. In 1990, Edie Creek Mining Company Pty Limited, a joint venture company involving Wau landowner groups commenced operations on New Guinea Goldfield's leases. It currently mines by open pit methods, rich quartz stringers and is invest-igating the open pitting of the Edie Creek/Karuka underground workings.This paper describes the mining and processing techniques employed during the various phases of develop-ment at Edie Creek in the past 70 years. The problems and hardships of operating on a new and remote goldfield are outlined.Abstract

Jan 1, 1994

By Brennan D. J

The trend worldwide is for increasingly stringent control of sulphur dioxide emissions to the environment. It is therefore likely that Australian industry will be placed under increased pressure to restrict such emissions, and this will have implications for Australian smelters of mineral sulphide ores. Traditional outlets for sulphur dioxide emissions have been in sulphuric acid manufacture, but Australian demand for sulphuric acid has declined markedly in recent years. This paper examines the balance of supply and demand for sulphur and related products in Australia, the shifts occurring in that balance and the underlying causes of those trends.

Jan 1, 1994

Valuers will often intuitively express the probability that property value will exceed a certain amount . . . 'I think the chances that the value will exceed $50 million are excellent. The chances that they will exceed $80 million are poor'. This paper shows how it is possible to combine the uncertainties of the value of several key items to provide an estimate of the probability of a certain overall value being achieved. The valuation of a large copper/gold deposit was naturally influenced by uncertainties in the base assumptions of costs and metal prices. Potential acquisition of the property through share purchase raised the issue of what was a reasonable intrinsic value for the shares. Market considerations could be used to appropriately adjust the intrinsic value. After a range of possible metal prices and operating costs were determined, estimates were made of their probable distributions. By combining these probabilities in a random selection, a range of property values was calculated. Each value had its respective probability of occurrence. This allowed a most likely value of shares to be calculated. This paper demonstrates how the valuer's intuition is complemented by numerical analysis.

Jan 1, 1994

By Rieniets S, Somerville J. L

In Morwell Open Cut brown coal mine, the overburden 'firehole' materials which have resulted from ancient coal fires vary-from hard baked clays to firm laminated lacustrine clays. The need to pre-strip designated areas to reduce the slope height and attain safe digging conditions for the bucket wheel excavator operation is now accepted practice at the open cut mine. In this study, the inherent spatial variability of undrained shear strength of the clay materials has been incorporated in a visco plastic, finite element based, probabilistic slope stability analysis. Data on the costs of initial pre-stripping, excavation and slope failure are collected to provide an economic basis for the optimisation of the design of the overburden batters in Morwell Open Cut. This improved stability modelling is enabling costly pre-stripping to be minimised while ensuring acceptable slope stability conditions and minimising the risk to personnel and plant.

Jan 1, 1994

By Greaves M. C, Amos M. D

A study was made of the instrumentation and technique of atomic absorption spectroscopy developed by Walsh of the Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia.The method was evaluated for the determination of silver in lead sulphide concentrate. The precision of the procedure developed is equal to that of the uncorrected fire assay method and the accuracy is greater.Brief mention is made of the use of this technique for the determination of silver and other elements in ores and concentrator products.

Jan 1, 1994

The Mining Act (1992) and the Petroleum Act (1980) provide for the Government of Papua New Guinea (PNG) to take up equity holdings in mining and petroleum projects. The price the Government pays for its share is based on the historical cost of exploration and development on the project to the date of government equity acquisition. The equity level to be acquired is not fixed and ranges up to 30o for mining and up to 22.5s for petroleum at the discretion of the Government of the time.The objective of this paper is to examine the pros and cons of State equity holdings in PNG from the point of view of both the State and the developer. Using an economic model of the PNG mining taxation system an assessment is made of the effective return on investment received by the State from such equity holdings. The results are compared with government revenues from other taxation measures.

Jan 1, 1994

By Hanley J

Coal winning in the Latrobe Valley exceeds 45 mtpa uses a small number of Bucket Wheel Excavators and high speed conveyor systems. While this equipment offers many advantages in the production cycle, incorrect use can lead to low productivity and risks to the safety of the operators and equipment. The mining equipment is of high capital value and easily damaged when used outside the correct operating range. In the extreme case, this can result in total machine collapse, having major implications for personnel safety as well as production and costs. With an active productivity improvement program in the Latrobe Valley in the last two years resulting in a 50 per cent reduction of personnel, many experienced operators have retired. Mine management are facing the urgent need to rapidly train new operators to maintain high productivity levels and reduce the risk of accidents to personnel and high capital cost plant. With the assistance of the Central Gippsland College of TAFE a Certificate Level course has been developed for open cut operators. The course covers all essential training needs for the Latrobe Valley mines. The training is developed from National Competency Standards, allowing transfer of skills, and is flexible to suit other enterprises. It has been written for self-paced learning with the total job understanding, and to have competency-based learning outcomes, training tasks and assessments built-in to modules. With the introduction of this new training program, management is convinced that the element of risk within the mine will be significantly reduced. For these reasons it is an ideal training model for other enterprises.

Jan 1, 1994

By Tien J. C

Many factors (type of coal mined, water pump pressure, wetting agent concentration, etc) will affect the performance of a dust suppression system using a water spray in an underground coal mine. While a two-level factorial method is useful in

Jan 1, 1994

By T Christie, A Swain

Patterns of quartz veining in epithermal gold-silver deposits at Wharekirauponga, Neavesville and Ohui in the Hauraki Goldfield, have been analysed to determine the effects of different lithologies on vein distributions. At Wharekirauponga, quartz veins are hosted in rhyolite and minor andesite, with the andesite containing slightly higher gold grades. Local basement andesite, rhyolitic tuff and silicified black shale host gold-bearing quartz veins at Neavesville. At Ohui, quartz veins are hosted in rhyolite, rhyolitic tuff and andesite. Fractal analysis was used to quantitatively describe the distribution of veining. The fractal dimension (D) of veining in silicified tuff is 0.25, moderately silicified rhyolite has D = 0.23 - 0.26, clay-altered andesite has D = 0.3, strongly silicified rhyolite has D = 0.3 - 0.39, silicified andesite has D = 0.4, and silicified black shale has D = 0.43. The D values are related to the composition of the host rock, and appear to be controlled by its competency. Hydrothermal silicification results in increased competency and higher D values. Vein thickness frequency plots for different lithologies show that andesite at Ohui, and to a much lesser degree at Wharekirauponga, contains more thick veins than rhyolite and tuff. Gold grades show a strong to fair correlation with higher vein density in three drillholes at Wharekirauponga. The fractal dimension of veining is an important control on fluid flow and gold deposition within an active epithermal system. Vein systems with higher D have a greater density of veining which would have favoured increased fluid-rock interaction. Lower D vein systems have more clustered arrays. The increased fluid-rock interaction induced by a high D vein system, when combined with a reactive host rock, results in an environment which is highly favourable for gold deposition. This situation is seen in the andesite at Wharekirauponga.

Jan 1, 1994

Present value maximisation studies are a useful aid in enhancing the economic performance of open pit mining operations. Maximising present value helps to reduce the risk of financial failure. Maximisation of present value also means that the capital invested is being used most efficiently. A characteristic step in determining the present value of an open pit mining operation is to set out the sequence in which increments of material (ore of various grades and waste rock) are mined. Traditionally, present value maximisation has been performed by selecting a cut-off grade for each increment so as to maximise the present value of the total operation, by an iterative process using computers. Kenneth F Lane has developed a method and applied it to many mining operations. An alternative method for determining the maximum present value of an open pit mining operation is given. In this method the maximum present value is determined by working backwards from the end of the operation life, progressively asking the question of each increment `what cut-off grade maximises the the present value at the start of mining of that increment?' The method allows calculations to be performed by a `spreadsheet' package. Present value determinations are characteristically performed under constant conditions (eg prices, costs) throughout the operation life. Unfortunately real life circumstances are rarely constant, with the costs of mining inputs rising at variable rates. The prices received for mineral products have been shown to broadly trend downwards with time in real terms. Treatment of such changes in the determination of the maximum present value of an operation is discussed.

Jan 1, 1994

By Barnett DW

Financial risk analysis provides the tools to examine the uncertainty of capital decisions in new mining ventures. This paper explores the methodology by which financial risks can be studied and quantified. The most commonly used risk evaluation methods, such as sensitivity analysis and discount rate adjustment, are presented as an introduction to a more comprehensive discussion of stochastic methods of discounted cash flow analysis using Monte Carlo sampling. The discussion is illustrated with examples of a stochastic discounted cash flow. The advantages of Monte Carlo sampling in risk analysis are discussed together with its problems, particularly those originating from the correlation amongst the variables that determine the economic output of a mining venture, and the difficulties created by insufficient data, imperfect knowledge and complexity. The paper also surveys the most commonly used software used in risk analysis.

Jan 1, 1994

By Aspinall T. O

This paper discusses the identification and assessment of risk for mining developments particularly for open pit mining. A distinction between sensitivity studies and risk analysis is developed, demonstrating the importance of geological and mining engineering judgement -as applied by experienced practitioners to the analysis and assessment of risk in such projects. Technical and financial risk analysis are discussed under: ò mineral resources and ore reserves; ò mining and processing methods; ò project construction; ò financing; and ò costs and commodity pricing predictions.

Jan 1, 1994

The Framework Convention on Climate Change (FCCC) places serious obligations on New Zealand as a signatory nation. This paper examines the nature of the FCCC, New Zealand 's proposed policy response, and the.implications for the minerals industry.

Jan 1, 1994

By Johnson G. D

The typical management systems used to address the issue of operating risk centre around technologies that identify, analyse and evaluate the risk factors. These logical systems such as HAZOPs, Fault Tree Analyses, etc rely heavily on technical considerations and process flow analysis. However, several research projects, across industries and countries have clearly shown that up to 80 per cent `operating risk' is determined by the actions of workers, supervisors and managers. Yet, most of the focus of risk management is on technical and procedural issues. This suggests that a significant imbalance exists in our management systems and that industries are unlikely to show significant improvement on current levels of safety performance. Effective risk management must include the intangible element of the organisation psychology towards risk. A practical and theoretically sound approach had been researched and developed in and for the mining industry. This paper describes the approach and methodologies applied at the Cosmo Howley Gold Mine in the Northern Territory, where an inclusive approach to managing financial and operating risk was followed. The Cosmo Howley Mine showed a dramatic reduction in lost time injuries and improvements in financial indices - providing conclusive evidence of the link between management effectiveness, safety and productivity. This `triangle' has often been the subject of speculation and theory. It is demonstrated in this paper how the management team of Cosmo Howley focused their practices and systems on the improvement of organisational dynamics, ensured tangible and clear focus on parameters of costs and safety and how the improvement process was managed. It is concluded that the improvement process did not require a `major re-engineering' of the organisation. The organisation culture changes that occurred were incremental, planned and effective. It entailed the implementation of sound risk management methodologies, and ensured that a significant emphasis was placed on an aspect that is defined as `organisational dynamics'.

Jan 1, 1994

By Taylor GP

Mt Kasi in Fiji is a high sulphidation style of gold deposit exposed at a high crustal level. Individual alteration centres are localised at the intersection of cross structures within a through-going structural corridor, the Mt Kasi Fault System. A two stage alteration/ mineralisation model suggests that much of the high sulphidation alteration is derived from the initial rapidly moving gas-rich portion of the hydrothermal fluid. The gradual cooling and neut-ralisation of hot acid fluids by mixing with oxygenated ground waters forms the characteristic zoned alteration assem-blages which grade from cores of residual silica through silica-alunite to peripheral clays. The liquid-dominated phase of the hydrothermal fluid brecciates the competent, altered rocks and deposits sulphide mineralise-ation within the breccia matrix. High gold grades occur in the matrix-rich breccias and decline from the hydro-thermal fluid upflow to outflow zones.CSAMT (controlled-source audio magneto-tellurics) geophysics has been used to define the geometry of the alteration centres while strike slip movement on the major structures accounts for the dilational structural environment in which the ore hosting breccias form.

Jan 1, 1994

A biological column leach testwork program was undertaken on a chalcocite ore. Three tests were conducted in all, using 65 in x 100 mm columns in three sections. The tests were started with varying acid strengths and inoculated with bacterial solutions from previous column testwork. The leaching of Cu was found to occur in three stages. These stages consisted of direct acid leaching, bacterial oxidation and ferric iron leaching. These leaching stages can most easily he described through the examination of not only Cu dissolution but also Fe dissolution and its subsequent oxidation and precipitation. The p11 of the system was found to he critical in establishing and maintaining the bacterial leaching system. The oxidation potential was seen to he influenced by the leaching system as the oxidation states altered. Test variables such as, 02, COz, and temperature were all found to influence the system. Final copper recoveries were in excess of 90 per cent in each column test over a leach time ranging from 211 to 328 days. Given similar leach conditions are applied, the application of this technology to site is expected to give comparable results.

Jan 1, 1994

The Ramu chromite deposit occurs in the Marum Ophiolite complex and is the most economically attractive chrom-ite deposit in Papua New Guinea. Its lateritic nickel, chromite and cobalt potential has attracted several compan-ies to prospect the deposit.In the present work, the compositions of chromite in the Ramu lateritic deposit and coexisting olivine-chromite pairs in Marum Ophiolite dunite were analysed with the electron microprobe for Fe, Mg, Cr and Al. The results were used to determine the relationship between the cations in the tetrahedral and octahedral structures of the chromite. In addition, the Fe, Mg, Cr and Al cations of the coexisting olivine-chromite pairs were used to calculate the equilibrated temperatures of crystallisation of the chromite. The variation of Fe", Mg and Cr cation values of the chromite in relation to the calculated temperatures was studied by regression analysis.

Jan 1, 1994