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By R. Boom, J. Halder, B. Snoeijer, B. Deo, A. Overbosch

Operational data of BOF and the slag samples for different starting conditions of phosphorus(0.06–0.26 per cent P) and silicon content (0.3–1.2 per cent Si) of hot metal have been analysed. The contribution of parameters that are well known to affect phosphorus distribution at tap, like basicity, temperature, FeO content of slag, slag mass etc., is investigated through the models of ionic theory of slag, optical basicity, regular solution approach and molecular theory of slag. The best overall results are obtained by the model based on molecular theory of slag in which several operational parameters are also incorporated. The investigations of different slag samples, based on optical, SEM, EPMA and X-ray studies, reveal the effect of MgO and Al2O3on slag morphology and phosphorus distribution in different phases. It is important to consider phosphorus distribution ratio in the solid and liquid part of slag. The solid part of slag, which is mostly dicalciumsilicate, can contain up to 5 per cent phosphorus. The phosphorus content of the liquid part of slag may depend upon the phosphorus content of hot metal or phosphorus load of slag. It is found that incorporation of effect of dicalciumsilicate in the model improves the accuracy of prediction. For better process control, the addition of iron ore towards the end of blow must be avoided while treating high phosphorus hot metal or during the production of ultra low phosphorus steels. Keywords: steelmaking, BOF, phosphorus distribution, slag morphology, MgO, Al2O3,dicalciumsilicate, process control, models

Jan 1, 2004

By A. P. N. Sutherland

Pipelines for transporting high concentration slurries are often designed using methods applicable to homogeneous non-Newtonian laminar flow. Many industrial slurries though comprise coarse particles in a non-Newtonian carrier fluid, and existing experimental evidence from tests with such slurries demonstrates that they are not homogeneous. Under laminar shear conditions the coarse particles settle, even in statically stable carrier fluids. To understand this better, the Institute of Materials Science and Technology (IMST) at Cape Peninsula University of Technology (CPUT) is conducting ongoing research into the flow of these high concentration non-Newtonian settling slurries. Since pressure gradient and flow rate measurements alone are insufficient to adequately model the flows, an electrical resistance tomography (ERT) instrument developed by the University of Cape Town (UCT)was incorporated into the pipe test loop to determine pipe cross-section concentration and velocity profiles. The software developed to do this is modular and allows different image reconstruction and cross-correlation algorithms to be implemented and tested without significantly changing the rest of the application. At a total frame capture rate of 566 frames/sec a 2.67 GHz Intel Celeron processor with 500 MB of RAM is fast enough to calculate and display velocity profiles in ?real-time? at an update rate of one profile every two seconds. Examples of experimental concentration and velocity profiles obtained using the system are shown and some proposed improvements/extensions to the system are listed.

Jan 1, 2008

By t. Knezicek

Tuzla Coal Basin in Bosnia and Herzegovina is the largest coal area in the State. Regional mining industry sensed the need for mining machinery database development in order to achieve easier planning purposes and equipment selection for open cast mines in Tuzla Coal Basin. Several databases for mining machinery used on the bituminous deposits, i.e. on brown coal and lignite mines, were developed at the Faculty of Mining, Geology and Civil Engineering, Tuzla. System Development Method was used as the approach to the database development, generating relational structure of database. First database was established for trucks and was presented as simple table, drawn and filled on the paper sheet. In the next phase, data were stored in spreadsheet type software (Quattro Pro and Excel). Lately developed database is Bucket Wheel Excavator database designed in MS Access. Two concepts, spreadsheet and Access, were integrated into one large database, enabling manipulation of hundreds of data at one place. Required adaptations of existing database in MS Access, enables Access to be used as an integration resource. Database is designed to reserve free memory for input data for mining equipment not considered so far, such as spreaders, crushers, belt conveyors, tripper cars, etc. New, integrated database, at this stage, can be imported to any type of commercial or individual software where needed. Mining machinery integrated database for open cast mine operations is under going testing in a State company, Coal Mines Tuzla. Keywords: Tuzla Coal Basin, machinery database, SDM, relational database

Jan 1, 2003

By Y. Fan, D. H. Zhang, J. Y. Xu

The hydrogeological conditions in the Chambishi mine area in Zambia. were investigated. Chambishi is a very wet mine and groundwater discharge costs are high. The research goal was to identify methods to reduce the discharge costs without greatly affecting the mining process. Hydrogeological data was obtained from measurements in drill-holes and from drill cores. The differences in structural deformation in different areas determine whether a layer of rock is an aquifer. In the mine region, the Lower Roan Group ore shale and quartz-sandstone unconformably lie on the basal schist and granite aquifuge. The Upper Roan Group dolomite is continuously distributed over a large area around the orebody. This dolomite is the main target of groundwater control efforts, and its water yield is also influenced by the deformation intensity. Based on the observations, backfilling was gradually adopted to appropriately safeguard the integrity of the aquifuge above the orebody. The overlapping relationship between the aquifer and aquifuge has been utilized to increase mine drainage efficiency. This measure has not only greatly reduced the costs of mine drainage, but also improced protection of the groundwater environment. The old drill-holes that were not sealed after exploration drilling were grouted. Further, possible water-conducting fracture zones were investigated. Cover drilling towards the suspected zone was conducted to prevent the high-pressure groundwater from shallower aquifers from entering stopes in deep areas of the mine.

Jun 10, 2024

By S. M. Spottiswoode, A. J. Jager, N. C. Gay, J. A. Ryder

The South African mining industry is at present planning to extract orebodies at depths of up to 4 km. To do this cost effectively and, at the same time, ensure safe working conditions for mining, the personnel will require both the development of new strategies and the implementation of current rock-engineering technological developments on a wide scale. This paper covers most of the technological developments likely to be required for mining at very high stresses, but it is clear that improved regional support systems will need to be developed to ensure defective stability of the rockmass during mining operations. Similarly, it is clear that improved strategies for mining in large-scale geologically disturbed areas, where slip on faults or dykes can result in wide-spread rockburst damage, will have to be addressed

Jan 1, 1995

By J. M. Cardoso, E. F. Quadros, A. Chiarini, F. Fernandes, G. Vilela, J. Ireno, L. C. Agostini

Based on the geological-geometric characterization of the basaltic rock at the site of a factory for chemical products situated in the Southern region of Brasil, and on results of a significant number of packer tests, the principal directions of flow were estimated, taking into consideration the intersection and the orientation of the joints and the amount of contaminant flow measured in each interval. The tests were performed using the multi-packer hydraulic multitest probe of IPT (HMTP) instrumented with an electric conductivity meter. A method of analysis for three-dimensional evaluation of the amount of contaminant flow in the area was proposed for future mitigation of the problem. Basé sur une caractérization géologique-géotechnique de la roche basaltique existant sur un site dune fabrique de produits chimiques située au sud du Brésil et sur les resultants dún nombre significantif déssais du type packer, les directions principales d´écoulement ont été estimées en considerant l´intersection et orientation des joints et la quantité de contaminant mesurée sur chaque intervale d´essais. Ceux-ci ont été realizes en utilisant une sonde multipacker developée au IPT – São Paulo (HMTP) instrumentée avec un mesureur de condictivité électrique. Une méthode d´analyse 3-D pour l´évaluation du transport du contaminant sur ce site a été proposée pour une future mitigation du problème. Auf Grund der geologischen Struktur des Basalts auf dem Gelände einer chemischen Fabrik in Südbrasilien und der Ergebnisse einer ansehnlichen Zahl von Pumpversuchen wurden die Hauptfließrichtungen bestimmt unter Berücksichtigung des Kluftgefüges und der in jedem Intervall gemessenen Menge kontaminierten Wassers. Die Versuche erfolgten mit dem im IPT entwickelten Verfahren (HMTP) mit Mehrfachpackern und elektrischen Leitfähigkeitsgebern. Ein analytisches Verfahren zur dreidimensionalen Ermittlung der Mengen kontaminierten Wassers wurde für die künftige Befassung mit dem Problem entwickelt.

Jan 1, 2003

By C. Siyasiya

One of the problems that is occasionally encountered during the continuous casting of DIN 1.4003 stainless steel (hereafter referred to as 1.4003) is the side bulging effect, a problem that is generally prevalent in ferritic stainless steels. This occurs because the unconstrained narrow sides of the solidification shell are not able to withstand the ferrostatic pressure once the strand has emerged from the mould. Coupled with side bulging, there is strand width variation at high temperatures, i.e. when the steel is in the ferrite-austenite dual phase region. Both of these dimensional changes to the slab profile create some processing problems in subsequent hot rolling operations when unacceptable width variations are encountered. The strength of the solidification shell and its ability to withstand the ferrostatic pressure during continuous casting is dependent on its thickness and phase composition when exiting from the mould up to a few metres downstream. From the study of the high temperature metallurgical behaviour of this steel, it was observed that a thicker solidification shell when exiting from the mould and a higher austenite volume fraction in the steel would be favourable for the reduction of the side bulging effect during continuous casting. It was also found that as long as the d-ferrite to austenite phase ratio keeps fluctuating due to variations in chemical composition and process control in the dual phase region from cast to cast, the strand width variation problem would probably persist. The remedy to this effect lies in more strict chemical composition and process control during continuous casting of this steel. The hot ductility experiments revealed that 1.4003 exhibits good hot ductility in the strand straightening temperature range with a minimum of 75 per cent reduction in area and this was attributed to the high volume fraction of ferrite (0.2 to 0.4) in the steel. This would provide a remedy to side bulging by increasing the secondary cooling rate of the strand in order to form a thicker solidification shell without necessarily risking transverse cracking and other surface defects during unbending. Keywords: side wall bulging, resistance bending moment, applied bending moment, ferrostatic pressure.

Jan 1, 2005

By B. Genc

"The risk of spontaneous combustion is well known in the South African coal mining industry. In the coming years it is very possible that the incidence of spontaneous combustion will increase from current levels, due to factors such as an increased rate of mining, re-working of previously mined seams, more stooping and total extraction for underground mines, and higher stripping ratios for surface mines, leading to more spoils. It is also fairly certain that coal mining will face tougher environmental emissions legislation in the near future. To determine the areas where the risks of spontaneous combustion are high, it is necessary to improve on our current laboratory procedures for testing and evaluating coal samples, combining the results with site and field data, and if necessary revising the laboratory rating system to refine our understanding of South African conditions.Currently, laboratory tests are conducted in order to determine both the Wits-EHAC index and the crossing-point temperature which, when combined, give an indication of the spontaneous combustion propensities of the coal samples. This procedure has enabled the establishment of a database of results to review and evaluate South African coal seams. Using this database, the high-risk areas in terms of spontaneous combustion are identified. Tests have been undertaken for five consecutive years, between 2008 and 2012. In total, 119 coal samples from different coal seams and production coalfields have been analysed and classified through a series of laboratory tests. A comprehensive database of these results is available, and is continually being updated as new test results are added. This database will continue to expand, and to provide the basis for an improved risk evaluation methodology for spontaneous combustion"

Jan 1, 2015

By L. A. Matthews

The embrittlement of the Ti-6Al-4V alloy by hydrogen dosing at elevated temperature has been investigated. Metal coupons were subjected to isothermal treatments in a partial hydrogen atmosphere in the temperature range from 650ºC?950ºC and the degree of embrittlement after treatment was determined by drop-weight impact testing. Embrittlement was found to be inversely related to reaction temperature as a result of the combined effects of greater hydrogen absorption and titanium hydride precipitation at the lower isothermal temperatures. Keywords Titanium, hydrogen embrittlement, impact energy

Jan 1, 2011

By S. Heukelman

Zincor uses O2 enrichment (up to 26% O2 in the fluidizing air) to increase the processing rate of zinc concentrates in the fluidized bed roasters. The aim of this study is to determine whether O2 enrichment can be reduced by introducing micro-pelletized concentrate into the feed blend, while maintaining current roaster feed rates and calcine quality. It was found that, with a load of 20% micro-pellets introduced into the feed blend, that O2 enrichment could be reduced by 60%. It was determined that entrained particles spend on average between 0.46 hour and 2.44 hour in the roaster, compared to particles remaining between 3.93 hour and 4.00 hour in the bed overflow. This compares well with a radioactive tracer test performed by Spira. The required reaction time for micro-pellets was found to be less than the residence time inside a Zincor roaster. The result achieved indicated that the average particle residence time inside the roaster was increased successfully in order to compensate for the longer reaction time required to roast micro-pellets at lower levels of O2 in the fluidizing air.

Jan 1, 2011

Dr R. E. Robinson, Pr. Eng., obtained a B.sc. (Chem. Eng.) cum laude from the University of the Witwatersrand in 1950 and a Ph.D. (Eng.) from the same University in 1953, where he was awarded the Haikes Memorial Medal for Industrial Chemistry. Professor G. G. Garrett was appointed Professor of Physical and :Fabrication Metallurgy in the Department of Metallurgy at the University of the Witwatersrand in June 1980, and in January 1984 he became Head of the Department. Mr P. A. van Wielligh, Pr. Eng., climbed the mining ladder in the hard way, starting as a Mine Surveyor in 1936 and working his way up as Chief Surveyor, Underground Manager, Mine Manager, and Consulting Engineer, to Executive Director, including the intermediate steps. Mr H. E. James, Pr. Eng., is a graduate in Chemical Engineering from the University of the Witwatersrand. Both his B.sc. degree (1961) and his M.sc. degree (1964) were obtained on bursaries, the former from Gold Fields of South Africa and the latter from the Atomic Energy Board. Mr G. Pienaar, Pr. Eng., obtained a B.Eng. (Met) in 1967 and an M.Eng. in 1973, both from the University of Pretoria. Dr A. K. Haines, Pr. Eng., obtained all his degrees from the University of Natal, finishing with a. Ph.D. in 1971. Mr B. C. Alberts, Pr. Eng., obtained his academic training at the University of Pretoria, where he was awarded B.sc. degrees in both agricultural engineering (1963) and mining engineering (1965). Mr H. C. van Zyl, Pr. Eng., holds B.sc. degrees in mining engineering (1968) and civil engineering (1972), both from the University of Pretoria.

Jan 1, 1984

In constructing a financial model of a project significant effort is expended on capital and operating cost estimation, commodity price forecasts, and choice of discount rates while uncertainty in the primary input, the reserve, is often completely overlooked. The aim of this paper is to highlight the impact of uncertainty in the resource/reserve estimation process on the assessment of the financial performance of a project. Four qualitative processes have an impact on resource/reserve uncertainty. These stages are: 1.Ore definition 2.Geological interpretation 3.Resource estimation 4.Ore reserve estimation and mine planning. Each stage contains a number of tasks that may be considered as key performance activities (KPAs). Optimizing the manner in which these KPAs are completed can remove a great deal of uncertainty and error from the resource/reserve process. Examination of these KPAs within a company can also provide an insight to the quality of the information underlying the project. This will allow the company to identify any shortcomings in the data and to assess the resulting risks (Gilfillan, 1998). A hypothetical financial model based on a gold operation has been used to estimate the potential effect of resource/reserve uncertainty on revenue. Monte Carlo simulation has been employed to simulate a number of hypothetical scenarios: 1.a base case scenario which assumes no major errors or biases, but contains realistic margins for uncertainty that would exist in any project where work is being completed to the limit of best endeavours 2.a poor sampling scenario which assumes poor sampling practice and lack of understanding of sample preparation 3.a poor resource estimation scenario which assumes poor modelling and inappropriate choice of interpolation technique, and 4. a ?typical? scenario which represents a project where the majority of KPAs are not performed as best as they could be. The results show that realistic uncertainty ranges can generate changes in the estimate of potential revenue of plus or minus 30%.Therefore, it is important to allow for errors in these processes in any financial analysis or feasibility study. It is recommended that, when building a financial model, are view of relevant resource/reserve KPAs be carried out and appropriate ranges for uncertainty be applied to provide a range of potential outcomes. These outcomes can then be factored into the detailed cash flow analysis in order to ensure that technical uncertainty is built into financial decisions.

Jan 1, 1999

By J. H. van Dalen, P. J. Brandt, F. W. Wessels

A maximum of ten process streams (Merrill barren solutions) can be monitored sequentially with this on-line analyser, and gold concentrations as Iow as 0,005 mg/I can be determined. The design is a further development of the Tell-tale analyser constructed by the Corner House Laboratories during the period 1965-69. The barren solution is preconcentrated automatically by solvent extraction, the solvent being a solution of I per cent Aliquat 336 in di-isobutyl ketone. An aqueous-to-solvent ratio of 40: I is maintained. The extracted gold in the organic phase is determined by flame atomic absorption, each analysis taking approximately II minutes. The long-term reproducibility of the absorbance readings over a 24-hour period of repetitive sampling of four simulated process streams varied from 6,9 to 4,1 per cent relative standard deviation for gold concentrations of 0,0 I to 0,05 mg/I.

Jan 1, 1980

By F. Qunfei, W. Laijun, X. Lyu, A. Cosmos, L Huijuan, Z. Jinggang, G. Yao

In this paper, four cyanide-utilising bacteria strains were isolated from a gold mine tailings pond, in the Hexi gold mine (Shandong), China. Based on the analysis of 16S rRNA gene sequence, four strains were identified as Aeromonas hydrophila strain C1, Bacillus mojavensis strain C3, Shewanella oneidensis strain C2, and Aeromonas media strain C4. Based on the cyanide detoxification efficiencies results of the four strains, Bacillus mojavensis C3 had the highest detoxification rate and was selected to assess its efficiency to detoxify cyanide in gold mine tailings at different pH (9.5, 10.5, and 11.6) using cyanide as the sole carbon and nitrogen sources. Strain C3 was capable of detoxifying 46.5mg/L of cyanide-containing gold mine tailings at all tested pH ranges at 30oC, 196 rpm after 15 d. The amounts of cyanide detoxified were 87.5%, 84.1%, and 73.5% at initial pH 9.5, 10.5, and 11.6, respectively. The highest cyanide detoxification was observed at pH 9.5. The viable cells growths in the samples were 5.7E+09CFU/mL, 4.9E+09CFU/mL, and 2.7E+09CFU/mL at pH 9.5, 10.5, and 11.6, respectively. Free ammonia concentrations were observed as a byproduct of the biodetoxification process. The residual ammonia concentration in the sample was observed at 0.35 mg/L, 0.33 mg/L, and 0.62 mg/L at pH 9.5, 10.5, and 11.6, respectively. The highest residual ammonia concentration was noticed at pH 11.6. The amount of cyanide removed by mixed culture strains C3 and C4 was 94.6% and showed a residual free ammonia concentration of 2.6mg/L, as biodetoxification byproduct after 120 h. The pure culture Bacillus mojavensis strain C3 and its mixed culture strains exhibited higher potential to detoxify cyanide-containing gold mine tailings at alkaline pH values and could be cultivated to detoxify gold mine effluents at large-scale. Keywords: Bacteria strain, cyanide, detoxification efficiency, gold mine tailings

Jan 1, 2020

By W. J. Murray

Tests were conducted during the middle of this year to evaluate techniques and the equipment used in a novel continuous mining system for use in narrow reef tabular orebodies. Equipment was designed and supplied to test a mechanized drilling rig, a selection of rock breaking techniques and an integrated rock removal system, mounted on a self-advancing reciprocating flight conveyer. As the rock breaking techniques do not depend on the use of large quantities of conventional explosive the systems and equipment employed here have the potential to run continuously for 24hours per day. Whilst the tests carried out use simple prototype equipment employing established technologies, the long-term objective remains the use of sophisticated machinery capable of running continuously and un-manned, only interrupted by brief service intervals. Keywords: Hydro-fracturing, Rock breaking, Low energy, Propellant, Non-explosive, Safety, Continuous mining, Rocksplitter, Boulder buster, Ro-bust.

Sep 1, 2001

By N. Mulaudzi, S. Archer

"Direct cobalt electrowinning was developed to produce unrefined cobalt metal as an alternative to producing a mixed hydroxide product (MHP), which is the common cobalt intermediate product in African Copperbelt operations. MHP is preferred due to the high cost of producing high-grade cobalt cathode. Direct cobalt electrowinning test work results have shown that the purity of the unrefined cobalt metal produced from a low-grade copper solvent-extraction raffinate stream was ~97% (w/w), which is significantly higher than the MHP purity (up to 45% (w/w) Co). The current study investigates whether direct cobalt electrowinning would increase the profitability of African Copperbelt copper–cobalt oxide operations, when compared with the MHP flowsheet. An order-of-magnitude economic evaluation was conducted using dynamic differential discounted cash flow models on a “bare-bones” basis, using a 10% discount rate. Three variables were evaluated, namely; reagent utilisation extents, precipitation extents and filter-press wash efficiency. Multivariable risk analysis was also conducted using the Monte Carlo simulation technique to understand the impact of key project drivers. The financial study results indicated that a direct cobalt electrowinning flowsheet could potentially result in a higher mean net present value (NPV) compared with the MHP flowsheet. Cobalt recovery was found to have the most significant impact on the NPV. In addition to increased profitability of African Copperbelt operations, direct cobalt electrowinning has the potential to reduce the environmental footprint of operations as well as addressing the Democratic Republic of Congo government’s drive towards export of higher value metal products instead of low-grade intermediates."

Jan 1, 2015

By P. J. D. Lloyd, Jill Urban, M. R. Urban

The adsorption of gold from cyanide solutions onto constituents of the reef, and its role in reducing the efficiency of the gold-recovery process by M. R. URBAN. M.Sc. (Chem. Eng.) Rand (Visitor). JILL URBAN. B.Sc. (Chem. Eng.) Rand (Visitor) and P. J. D. LLOYD. Ph.D. (Cape Town) (Fellow) Evidence for the adsorption or re-precipitation of gold from cyanide solutions onto gangue minerals of the Witwatersrand reefs has been gathered over a number of years by various investigators. The evidence from tests using radioactive tracers is conclusive and indicates thlt adsorption contributes about 0,1 g/t to the total gold loss from conventional reduction works. The loss is a function of the alkalinity and cyanide concentration of the solution, and it appears to be affected by the extent of time between milling and cyanidation. The heavy minerals appear to be the strongest adsorbers, and the clay minerals somewhat less strong adsorbers. A sensitive qualitative test based on thin-layer chromatography permits the extent of adsorption and desorption to be readily determined.

By R. J. Gordon, N. J. Keys, N. F. Peverett

Photometric sorting of ore on a South African gold mine by N. J. KEYS. B.E. Met. (Queensland) (Visitor). R. J. GORDON. (Visitor). And N. F. PEVERETT. B.Sc. (Eng.) (Wits) (Fellow) This paper concerns the development and application of a high-throughput, multi-stream photometric sorting machine developed for the South African gold mines. It is now believed that this sorter and its progeny may be found suitable for a large proportion of all possible sorting applications. A laser-light source and sensitive photomultiplier are employed in a scanning system to detect light reflected from the surfaces of rocks passing through the sorting zone. Electronic circuitry then analyses the photomultiplier signal, which represents the varying intensity of the reflected light, and produces control signals to actuate the appropriate valves of an array of air-blast rejection devices to remove from the feed certain particles selected by the analysing process. Typical throughput per machine ranges from 50 t/h for a minus 60mm plus 30mm feed to 200 t/h for minus 150mm plus 70mm material.

Jan 9, 1974

By J. Keyser

The realization of an Integrated Technical Resource Asset Management System (ITRAMS) has so far evaded all software developers in the mining industry. The major factors that have prevented the development of such a system are limitations on software, hardware and network systems. Several factors have come together at Venetia Mine, which has made the undertaking of such a project both possible and desirable. This has led to the formation of a strategic partnership between Venetia Mine and Gemcom Software International Inc. This partnership is dedicated to develop and provide an Integrated Technical Resource Asset Management System based on Microsoft Back Office architecture, Gemcom for Windows™ and the MinRas system. This paper will elaborate on the phased approach of the integration of systems into the core repository, mechanisms of integration, the functionality of the system, final results, techno-economic benefits and general project management issues.

Sep 1, 2001

The spatial distribution of copper grades at the Mansa Mina project is highly variable due to the presence of high grade copper/silver/arsenic breccia bodies. Copper grades within the breccia bodies tend to average about 4.5% copper while grades in the surrounding stockwork average about 1.0%. The breccia is known to occur in the vicinity of significant controlling structures, however, the outline and therefore the thickness of the bodies are far from regular. Due to the high grade of these bodies a significant proportion of the value of the project is derived from the breccia tonnages. The irregularity in the outlines/thickness translates into an uncertainty in the breccia tonnage and therefore in the value of the project. Acknowledging the economic importance of the breccia bodies and the risk associated with the breccia tonnage uncertainty, significant additional drilling has been proposed to both understand the spatial distribution of the breccias and reduce project risk. The costs associated with this additional drilling are not inconsequential; thus, a reasonable question is ‘what value is derived from this additional drilling’? To obtain an answer to this important question, a simulation approach is applied. First the deposit is simulated using the existing drilling and the uncertainty in the resource is defined. Next the proposed drilling program is simulated and the simulated data are added to the existing data. Using this expanded data set a second simulation of the deposit is created and once again the uncertainty in the resource is defined. Using this approach, the reduction in the uncertainty in the resource can be determined. To convert this reduction in uncertainty (or reduction in risk) in the stated resource into a dollar value, a method of defining the increase in the project rate of return necessary to account for risk is presented. Using the two different rates of return, the difference in project NPV and hence the value of additional drilling is determined.

Jan 1, 2003