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By J. R. Beeder

Minerals Engineering Company (MECO) is a relatively small, promotionally oriented mineral exploration company founded in Colorado in 1948 during the height of the uranium boom. The company has been: 1. in uranium exploration and production 2. a drilling company 3. a manufacturer of Geiger counters 4. a major tungsten producer 5. then dormat for several years and 6. now we are back into exploration on a broad scale. We have been in underground lead and zinc production in the 1970's but we are now involved primarily in "wheeling and dealing" in mineral exploration. The company has had diverse interests in the past and we are presently diversifying to some extent into oil and gas ventures.

Jan 1, 1979

By G J. A Dewar

The Australian Corporations Law generally requires Independent Expert Reports to be presented in support of capital raising or in defence of mergers and takeovers. The introduction of the VALMIN Code in 1995 (and its recent revision issued as the VALMIN Code, 1998) made Assessment and Valuation Reports in these circumstances much more comprehensible than before because of its key requirements for transparency and materiality. By forcing the Independent Valuer to provide an explanation of the reasoning behind the estimation of a particular resource asset, VALMIN allows the reader to clearly see any error or illogicality in the valuation methodology used and to seriously question or even reject the resulting value. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Independent resource asset Valuers are the essential link between mineral explorers/miners on the one hand and brokers/analysts/fund managers/investors on the other. The minerals and financial industries both expect them to not use inappropriate or invalid valuation methods and illogical steps within these methods. This paper examines some of the less sensible ways in which some of the main techniques that Valuers commonly use to assess the fair market value of mineral properties have been applied in recent instances. The authors hope to discourage the adoption or perpetration of the æWhat-number-did-you-have-in-mind?' approach. It is MINVALÆs view that as many methods as possible should be used in any resource asset valuation. If any of the resulting estimates are in approximate agreement (particularly if they were derived using the less subjective of the available methods), ie if they cluster, they are probably more persuasive as being the Preferred Value of the asset than outlier values within the Valuation Range.

Jan 1, 1999

By Willard C. Lacy

A mining operation begins with prospecting and exploration-stages with long periods of investment and high risk of failure. However, success in exploration ultimately determines survival of the mining industry. Prospecting and exploration may discover evidence of a mineral occurrence and outline its size and character, but ore deposits that support mining are "made" through the collective efforts of project geologists, geophysicists, geochemists, metallurgists, engineers, chemists, lawyers, and even politicians (Joralemon, 1975). Some deposits may go through multiple cycles of rejection and recommendation, discovery and development, decline and abandonment, rediscovery and development, etc., as economic, technological, or political conditions change or geologic understanding is improved. Peters (1987, p. 233) graphically illustrates the normal life cycle of a mine and the position of exploration in the cycle (Fig. 4.0.1). During the past fifty years, mineral exploration has evolved from comparing evidence of mineralization of prospects with that of known deposits to a more quantitative science employing many facets of geochemistry, geophysics, multispectral sensing from space, computer data storage, analysis, modeling, and most importantly, a better understanding of ore genesis. This modem approach to exploration began in the late 1940s and continues to develop. Exploration efforts peaked in the 1960s with emphasis upon the search for porphyry copper deposits, Mississippi Valley lead-zinc deposits, and volcanogenic massive sulfide copper-lead-zinc deposits. It peaked again in the middle and late 1980s with emphasis upon micron-size disseminated gold and epithermal and stratiform precious metal deposits.

Jan 1, 2008

By R. P. Viljoen, A. D. Scheglov, A. L. Sokolov

"Abstract -The distribution of mineralized provinces is analyzed on the basis of their genetic link with specific blocks of the earth's crust including ancient platforms, mobile belts and zones of tectonic­ magmatic activation. Mobile and fold belts surround the Siberian platform in Russia and the Kaapvaal craton in South Africa, with decreasing age zoning away from ancient platform margins. The main differences in the geological development of the two cratonic areas are: (1) the long period before the final stabilization of the Siberian platform (3600 Ma to 1600 Ma) and the comparatively short period of time for the stabilization of the Kaapvaal craton (3600 Ma to 3050 Ma) and (2) the intensive multiple activation of the marginal zones of the Siberian platform and the tectonically­ controlled, magmatic sedimentary, intracratonic activity, typical of the Kaapvaal craton. Mineralization of the Siberian platform is largely characterized by marginal reactivation zones of differing ages although mineralized intracratonic Cu-bearing basins of Proterozoic age are also known. Mineralization of the Kaapvaal craton is mainly related to the formation of the intracratonic basins i.e., Witwatersrand (Au, U) and Transvaal (Au). The latter is characterized by multi-age volcanic-intrusive activity including the emplacement of Bushveld Complex (Cu, Ni, Pt, Cr, Au, V). The Siberian platform is characterized by the prolonged development of inherited mineralization from Archean until the late Mesozoic. The main period of mineralization in the Kaapvaal craton is restricted to the middle Proterozoic.The Baykal-Patomskaya and Namaqua-Natal mobile zones occupy similar positions adjacent to the Siberian and Kaapvaal cratons, respectively, and demonstrate similar modes of metallogenic development: i.e., the early formation of exhalative Pb-Zn-Cu deposits during the early stage and magmatic Cu deposits during the late stage. The more remote mobile belt near the Siberian plat­ form, the Trans-Baykal, is characterized by intensive multi-age mineralization (Wo, Mo, Sn, fluorite), related to a period of tectonic-magmatic activation. The Saldania Belt occupies a similar position near the Kaapvaal craton but is known for its poor Au, and Cu rnineralization. lt does, however, have some similarities with Trans-Baykal Belt in regard to Mo-W bearing granitoids.The phenomenon of interference of geosynclinal, orogenic, platform, and tectono-magmatic activation regimes is known for the Russian section of the Pacific Ocean Volcanic Belt."

Jan 1, 1994

By W. L. Batt

MODERN war means mechanization, and mechanization means raw materials, especially minerals-and lots of them. Let me recall a few events of recent history-events that constitute mile- stones down the road to the war now blazing on three continents and threatening to spread still farther. In 1932, Japan took Manchuria, largely upon the excuse that she needed raw materials; in 1935, Italy invaded Ethiopia, largely upon the excuse that Mussolini's growing nation needed raw materials-in this case oil; from 1933 to 1935, Germany cried out for a greater share of the world's natural wealth, and since 1938 has invaded or occupied ten other countries, frequently upon the excuse that she needed-and had a right to-more raw materials.

Jan 1, 1940

By R. H. T. Garnett

Recovery performance may be measured in absolute terms or in relative ones that relate the actual mining outcome to what was expected. Consideration is possible in terms of the control exercised by the operator. The eventual mineral output is the only figure known with complete certainty. The paradox is that, while performance is judged against the sampling, the reverse also applies. The R/Efactor and its four component factors are the best overall measures of performance. The choice of equipment for sampling and mining is very important. The sampling process may introduce errors and the sample density may lead to poor mining block selection. The resulting recovery performance is most visible on a regression curve. Changes in the cutoff grade must also be taken into account to avoid unrealistic production targets. Estimation methods incorporating different mathematical assumptions and techniques may cause over-or underestimation of the grade and volume. If the selective ability of the mining equipment does not match the size of the reserve blocks, the performance will be compromised. The treatment plant efficiency, the throughput rate and the degree of bedrock clean-up also affect performance. The maximization of throughput does not yield the optimum results. Marine conditions, which are outside the operator's control, affect not only operational availability but also performance. Examples are provided from actual operations for various commodities, showing the relative magnitude of the different effects upon performance.

Jan 1, 1999

By McMahon DW

The major components of a mineral reserve estimate for project development purposes are described with respect to sampling, geology, estimation methods, mining factors, metallurgical factors, environmental factors, financial and other factors. Each of these components impact to varying degrees on the recoverable metal or product of a new mining project. The evaluation of a project is a complex process involving the best the profession can provide in terms of geological understanding, engineering ingenuity, metallurgical skills and financial evaluation.

Jan 1, 1983

THE Secretary of Commerce is to be urged to as-sume leadership in assembling data as to produc-tion and consumption of minerals and metals, and studies of their importance in trade, as a result of the joint conference of the Institute and the Mining and Metallurgical Society of America, held on Tuesday afternoon, Feb. 15. With no set program and no especial effort to promote interest 120 members of the two soci-eties assembled and for two hours discussed in the most informal and frank manner the whole situation. George Otis Smith acted as chairman, Clinton H. Crane, who was to have served in that capacity, having been called abroad unexpectedly. Major Taylor for the Army and Capt. R. E. Bakenhus for, the Navy paid high tribute to the value of the reports already made by the committees of the two societies and pointed out the need of addi-tional data and of constant review of the figures, as a measure of national defense. J. E. Spurr, R. C. Allen, W. O. Hotchkiss, Fred Hellmann, W. Spencer Hutchin-son, P. N. Moore, A. C. Lane, E. E. Ellis, and others discussed various phases of the subject, reviewed what had so far been done, what was now in progress, what had been planned for the future, and the necessary limitations of the work. A. W. G. Wilson related the experience of the Canadian Government in this field, emphasized the importance of studies of the rate of consumption, and brought up the special case of the waste of the sulfur in sulfide ores with correspondingly increased demand on raw sulfur supplies. Mr. Lane pointed out that conservation, to be soundly based, must recognize the necessity of the present value of the ex-pected future returns exceeding the cost of the conserva-tion. Mr. Ellis called attention to the remarkably rapid change in technology and other factors that made predic-tions for more than a very short period extremely risky. Mr. Hotchkiss noted the large part of modern industry that is fundamentally dependent on minerals. Studies made by him indicated that even in a furniture manu-facturing center, such as Grand Rapids ids with its large consumption of wood, the metal and mineral industries constituted 60 per cent of the industrial life. For Michi-gan as a whole 55 per cent of the capital used in all in-dustries was employed in the mining and the metal in-dustries. This, he said, was little recognized because the buyer of alloys and metals was so far from the pro-ducer of raw materials, .but the ultimate supply of the latter was evidently of fundamental importance to the whole people. Mr. Spurr held that the more knowledge as to these matters the better. Mr. Hellmann felt that in the especial case of copper, wastage was less impor-tant than markets and economical routing of metal to them. Mr. Hutchinson classified minerals into three groups: (a) those, such as gold, that are used with very little loss; (b) those, such as coal, as are entirely consumed in use; and (c) the intermediate group. The problem, he thought, was necessarily different for the minerals of each group. Mr. Manning proposed definite-ly that since it was manifestly a great national problem, the Department of Commerce be asked to assume leader-ship here and to devote the necessary funds and staff to keeping up such a perpetual inventory of mineral resources as would best serve the public needs, both for war and peace. Both George Otis Smith and Scott Turner agreed that this was probably already within the authority of the Department but Mr. Turner told of the difficulty in obtaining sufficient funds for the work. Recognizing that the job was large enough to require the help of both public and private interests and the desire of the two societies to be helpful to the maximum extent, the Chair was asked to appoint a committee from the meeting to present to the Council of the Society and the Board of Directors of the Insti-tute a definite plan for further work. P. N. Moore, Van H. Manning, J. E. Spurr, R. C. Allen, R. H. Richards and W. S. Hutchinson were appointed and drew up the following plan for, consideration

Jan 3, 1927

By M. Vallée

Several reviews of mineral project performance in the past 35 years indicate a pattern of occasional, but recurrent, mining project failures due to shortcomings in geological information and estimation, mineral processing and metallurgical testing, feasibility study objectives and requirements, and project start-up methods. A commitment to quality assurance and continuous improvement methods and to obtaining “ENOUGH DATA, OF APPROPRIATE QUALITY” is essential. Recent international and Canadian proposals for mineral resource and ore reserve definitions have taken a nonprescriptive stance that will undermine the formulation of requirements, guidelines and industry standards for efficient deposit delineation and estimation, and for the determination of project feasibility. To help reduce problems, every feasibility study supporting a mine development and production decision should be based on objectives and methods adequate to reach completion targets similar to the bankers’, as a good business target for a profitable project. In a resource/reserve system, the use of reserve should be restricted to a project that meets required technical, economic and legal feasibility requirements for successful project implementation, and the definitions of these categories should provide explicit limits. Current shortcomings will limit the ability of the Qualified Person to provide “adequate professional practice,” fulfill his/her professional responsibilities to his employer or client and provide adequate information to the investing public. We must take advantage of present opportunities for Setting New Standards for the new Millennium.

Jan 1, 2000

By Ray Wood, Rene Sterk, Robin Falconer, Sean Aldrich, Simon Nielsen

"The Chatham Rock Phosphorite project is situated 450 km east of New Zealand at approximately 350 to 450 m water depth. The deposit occurs as a thin layer of phosphatebearing glauconitic sand at the surface of the sea floor and has a thicknesses typically ranging from 0 to 1 m. The sand layer consists of mainly silt and sand-sized sediments, with phosphatised chalk nodules up to 15 cm in diameter. Phosphate nodules were first discovered on the Chatham Rise in the 1950s by a New Zealand Government survey. During the 1960s to 1980s several private and government sponsored cruises explored the Chatham Rise and surrounding seafloor area. A total of 1174 samples were collected over a 600 km2 area with the majority of the samples collected using a pneumatic -or large Van Veen-style grab-sampler.Since acquiring the licence in 2010, Chatham Rock Phosphate Limited has conducted six cruises in two programs in the Project area. A total of 261 samples were collected using a Van Veen grab, box core and grab samples.Sample quality and QA/QC measures varied considerably between the cruises and within each cruise. A critical part of the assessment of the data collected in the Project area was to determine what quality thresholds to use to allow or disallow data to enter into the estimation process. As part of the data verification process, the relative and absolute quality of the data was assessed in as much detail as practically possible. The best samples were those that were collected using the pneumatic grab, sampled the full sand horizon, had a small location survey error and had no other apparent data ambiguities. This paper describes the challenges for mineral resource estimation for an unconventional style of mineralisation using unconventional sampling techniques."

Sep 1, 2014

By W.A. van der Westhuizen

Mineral resource management has become a well used phrase in the mining and minerals industry. Mineral resource managers are being appointed in many mining and mining-related organisations. Every mineral resource manager has his/her own ideas regarding what MRM means. There seems to be a tendency to define MRM close to home; geology would apply MRM principles to their environment and so will metallurgy, planning, mining, survey and every discipline and participant in the mining value chain. What do we do in the MRM environment and what do we aim to achieve? Surely we must have goals: what are they? Is value tracking MRM? What about best practices? Let us start at the beginning: what do we want to achieve in any mining operation? The minerals industry would like to make money, now and in the future. This calls for serious management inputs. The most important aspect is a holistic management approach regarding the total mining value chain. Process optimisation follows with application of Mineral Resource Throughput Management (MRTM) and Process Flow Management principles. Once flow processes have been established the necessary condition driven standards and measurements will be installed to ensure continuity in applicable processes.

Jan 1, 2012

By R C. A Minnitt

The Witwatersrand Supergroup is host to the world’s largest gold deposits. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are either known, estimated from specific geological evidence and knowledge, or interpreted from a well constrained and portrayed geological model. Establishing such a model is an integral part of the evaluation process in the Anglogold Ashanti (AGA) group, and is referred to as a Geoscience Business Model for the mining operations. The geological model established over the years has relied on detailed descriptions of the mineralisation, and understanding of the regional and local geology of the Witwatersrand sediments, in the West Wits and Free State goldfields. The processes of data collection in regard to underground stope and developing mapping, structural and sedimentological mapping, and the geological inputs to mine planning systems are described, together with aspects of drilling, sampling, grade control, and data management. Anglogold Ashanti’s Geoscience Department employs a complex and unique process to generate the Mineral Resource, including a 3D geological structure model of the orebodies which are usually highly faulted, and a robust mineralisation/facies model on which the decisions about domain boundaries are established. A Mineral Resource Inventory System (MRIS) has a dynamic graphic interface to the resource database that is used for compiling the resource statement. It is also used to determine the gold-called-for, as well as short and long-term planning. A unique estimation process using the extensive closely spaced stope face sampling database and the more widely spaced surface drilling information is used in combination in the Macro Co-Kriging estimation. The use of different support sizes in the C0-Kriging process is preceded by the equally unique ‘clusterisation’ and ‘acceptorisation’ procedures by which the data are quality controlled and assured prior to their use in the kriging process. The Mineral Resource and Ore Reserve estimates are classified according to the SAMREC code through a method that ensures that they are compliant, auditable, transparent and reconcilable with previous Mineral Resource and Ore Reserve statements.

Aug 22, 2011

By C. Meyer, J. J. Eidel

Major gaps in understanding hydro- thermal systems remain after a century of studying fossil ore deposits and active geothermal areas. The periodically rejuvenated concept of "stacking" ore deposit types has never been verified by a continuous sample. Basal and marginal regions of both “fossil" and "active" hydrothermal systems normally lie beyond the limits of economic exploration, remaining inadequately exposed. Incomplete scientific under- standing of he vertical transitions clearly limits the efficacy of exploration programs for hydrothermal ores of all types. The Continental Scientific Drilling Committee's (CSDC) Panel on Mineral Resources has defined dedicated research objectives and add-on experiments to industry or government drill holes of opportunity.

Jan 1, 1988

By J. James Eidel

Geological interpretations generally require projections from direct observations at the earth's surface. Crustal projections include mineral deposits as well as the geochemistry of the crust and its fluids, structure and tectonics. Drilling offers opportunities for verification of the required projections, and is thus a required step in furthering crustal understanding. Like any new science, the direct observations that drilling provides commonly generate major surprises and stimulate totally new ideas. Drilling is costly. There are many critically important scientific problems with societal and potential economic benefits in mineral deposits which have not been drilled because the holes are difficult to justify as economically sound risks for private capital. Such holes, however, are highly justifiable research goals for government because of the significant new opportunity for ore deposit insight and exploration that they afford. The earth science community is prepared with excellent drilling projects for research in mineral deposits.

Jan 1, 1985

Constraints on the mineral industry are best treated as issues that have to be understood and managed in partnership rather than in conflict with communities. TheZapopan development at Mt Todd in Australia and the Martha Hill development at Waihi in New Zealand are but two of many recent successful examples at the local level.   However, at the national level, the issues are more complex and more difficult to resolve because the most influential stakeholders are now the urban electorates and governments defer to their perceptions when making decisions and policy. In the developed countries, government policies for the development of mineral resources have been progressively eroded since the early 1970s. At the same time policies for the environment and for native land rights have generally been carried out in a way that has reduced access to minerals and increased the cost and risks for prospectors and developers (Hancock, 1995). Since the end of the Cold War, the lesser developed countries (LDCs) have introduced policies to attract investment in their mineral resources that remained undeveloped under previous unstable or hostile regimes. The increased attraction of these LDCs and the decreased attraction of the developed countries has caused many Australian and North American companies to outlay increasing proportions of their budgets and capital investment in the LDCs.   Significantly, LDC policies for environment protection do not discourage exploration and mine development, Surveys of the relative appeal of the LDCs and the traditional mining countries of the developed world, rate Chile, Argentina and Indonesia ahead of Australia and Canada in terms of risk, delays and ease of doing business (Australian Mining Monthly, February 1994).

Jan 1, 1995

Constraints on the mineral industry are best treated as issues that have to be understood and managed in partnership rather than in conflict with communities. The Zapopan development at Mt Todd in Australia and the Martha Hill development at Waihi in New Zealand are but two of many recent successful examples at the local level. However, at the national level, the issues are more complex and more difficult to resolve because the most influential stakeholders are now the urban electorates and governments defer to their perceptions when making decisions and policy.

Jan 1, 1995

By K. L. Ludeke

For many reasons it appears that deep-rooted, perennial shrubs offer potential for improved stabilization and provide maintenance-free vegetative cover to harsh sites where perennial grasses have not been successful. The very fact that a drought-adapted shrub has a massive root system that can use moisture from a greater volume of mineral waste soil materials suggests that long-range arid environment resource development may be greatly enhanced by utilization of desirable forage shrubs. An effort is underway to assemble information and plant materials of promising species from many arid regions of the world. Surprisingly, many of the better plants for arid sites are quite high in protein content, and with proper management, breeding, and selection may prove to be very desirable livestock feed. Advancements in arid-land solid waste stabilization hold favorable promise for many industries that mine and mill in arid regions for effective reclamation of disturbed areas. Particularly exciting is the possibility of establishment of high density maintenance-free vegetative cover of climax vegetation that reclaims the disturbed area back to its original land use. Because of high shrub productivity, stabilization potential, nutritional quality, and reclamation success, greater use should be made of shrubs in disturbed land reclamation associated with mining and milling operations in harsh arid environments.

Jan 1, 1984

By James R. Dunn

The mineral industry" has made and will continue to make important contributions to the growth of our economy. However, the industry is presently under continuous and increasingly severe attacks by organizations and individuals interested in the preservation of our environment. Yet neither the public interest value of preservation nor the public interest value of our mineral industry is known. In the absence of such values, judgments about best land use where minerals are involved are nearly always made on emotional grounds. An example of the sort of problem that has been created is in the New York Metropolitan Area. Because of institutionally-created shortages stemming largely from zoning decisions and building over deposits, the effective cost of fine aggregate delivered at dockside at Manhattan rose from $2. 65/cubic yard in July, 1969, to $4.10/cubic yard in May, 1970, this in spite of approximately ;l0,000 years of reserves on Long Island. The cost of fine aggregate for New York City alone has "Increased over $S million annually within one year, with the cost increase for the Tri-State Metropolitan Area (coastal Connecticut, New Jersey, and New York)" exceeding $10 million annually. The ab0ve situation has created a cost increase which is clearly the result of non-conservation of a mineral resource. That is, in readily measurable values, it Is costing the public about $10 million per year because good conservation practices were ignored-a public-interest loss. Admittedly, this is not the whole story because the public is simultaneously obtaining other values from the land surface that would otherwise have had to be dedicated, temporarily to be sure, to mineral recovery-a public-interest gain. However, the point is that we do not know where the balance lies-the net public interest value; it may lie one way for deposits zoned out of existence by a growing suburb, another for areas designed as permanent greenbelts, and still another for areas under new highways

Jan 1, 1971

The issues which are the subject of this paper cover an extremely broad field. In themselves the components of the topic could be the theme, in considerably greater detail, of a two day seminar. Indeed a full course in an academic year would probably not do justice to the topic. I have therefore experienced considerable difficulty in condensing such a broad subject range down to a 30 minutes address and in doing so have tried to, hopefully, provide a little bit of everything for the wide range of professional interests and different levels of commercial, professional and legal expertise represented at this conference. Perhaps my address could best be described as a "bird's eye" view rather than a "worm's eye" view of the subject.

Jan 1, 1990

By Ana Chiquini, Clayton V. Deutsch

The most common approach used in the mining industry for mineral resources modeling is to estimate the grades using ordinary kriging and report the recoverable resources based on this deterministic estimated model. Mineral resources calculated with kriging are a smooth representation of the actual distribution of grades and do not provide an assessment of uncertainty. Unlike kriging, simulation reproduces the variability of the grades in the mineral deposit and provides an assessment of uncertainty. Reporting mineral resources directly on high-resolution simulation results would assume perfect knowledge of the grade at the time of mining and selectivity at the scale of the data. There will always be uncertainty left at the time of mining, so assuming perfect knowledge of the grade in the future is incorrect. There are two concerns when geostatistical simulation is used for resources modeling: the information and the mining selectivity effects. A new framework for resource estimation is proposed with two separate modules to address those concerns. The information effect is accounted for by anticipating the additional production data that will be available at the time mining to guide the destination for the mined material. The mining selectivity effect is addressed by mimicking the grade control procedure to get mineable dig limits at a chosen selectivity, represented by a minimum mineable unit size. In addition to a prediction of recoverable resources that will be closer to the material mined in the future, the framework proposed provides an assessment of local and global uncertainty for risk management.

May 26, 2020