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By Mark Laffoon

Gold Fields Operating Co.-Chimney Creek has conducted numerous ore reserve modeling studies In order to optimize the estimates of the gold grades and tonnage distributions. Improved models continue to be produced for the major pits which Increase confidence levels required by Gold Fields management and provide the basis for more accurate long and intermediate term mine planning. Various kriging and non-kriging estimation techniques are used at Gold Fields -Chimney Creek Mine. This paper reviews the modeling histories and, current procedures used to construct these models with particular emphasis on the North Pit deposit.

Jan 1, 1991

By M. M. Oosterveld

"In South West Africa diamonds are mined from ancient beach deposits by the Consolidated Diamond Mines of South West Africa, Limited.To improve the control of mining production, a computer is used for the calculation of statistically more accurate and homogeneous ore blocks. Geological and sampling information has been digitized and stored on magnetic files.The figures derived for each block entail the calculation of the diamond size frequency distribution, the diamond density distribution and the ore reserve by using the density distribution.The diamond size frequency distribution is used for estimating the revenue in an ore block.A description is given of how a linear programming system can be used for production planning."

Jan 1, 2014

By Neil D. Donnell, O&apos

Ore reserve estimation at the Syncrude Canada Ltd. open-pit oil sands mine in Northern Alberta has evolved since the project's inception. Early techniques followed a conventional petroleum reservoir analysis format, with relatively widely-spaced drill holes and semiquantitative grade data. Experience has developed a more standard mining approach, including classification of geological materials by both lithology and sedimentary origin, timely and multi-purpose drill holes, precise analytical data, empirical recovery factors, a computerized geological data base, and an ore body block model. Future efforts will involve enhancement of existing techniques, use of geostatistical algorithms, quantification of confidence limits, and improved control of the ore model by geological parameters.

Jan 1, 1985

By Jean Michel Marino, Jean-Pierre Slama

"The computer methods used by the French Commissariat a l'Energie Atomique, which are applicable to any type of ore deposits, are:(i) Ore reserve estimation. The data are either the core analyses or gamma leggings. To determine the spatial distribution of the ore, three different methods of interpolation are used. Two of these are based on the least-squares theory and the third one is an application of the regionalized variable theory. The interpretations of the orebody by the geologists are introduced in the computer program as often as possible.(ii) Optimal open pit design. From the spatial distribution of ore, the three-dimensional outlines of the optimal pit are determined by a geometrical algorithm which allows different slopes varying with the azimuth.Finally, the optimization of annual successive plans arc discussed."

Jan 1, 2014

By Gooday PE, Brech GE

Ore reserve categories used by Pancontinental Mining fall into one of three fundamental groupings: Geological In Situ Reserves Mining Reserves Production Estimates The first of these describes the total reserve within stated parameters without implication as to its mineability. The second is that part of the Geological In Situ Reserve which is considered mineable under a specific mining plan. The third is the Mining Reserve adjusted with appropriate dilution and recovery factors and thus represents the best estimate of the tonnage and grade of production. This practical three category system mirrors the standard steps traditionally taken in ore reserve estimation and readily conveys the basis of the estimates. An important, but secondary classification can be added to qualify the level of confidence in these estimates using the terms: Proved (or Measured) Probable (or Indicated) Possible (or Inferred) These terms can be applied to any of the fundamental groupings, but it is generally implicit that the level of detail required to produce meaningful Mining Reserves or Production Estimates would require the basic Geological Reserve to be at a Proved or at least Probable level of confidence. The application of these classification systems by Pancontinental is illustrated by reference to the Paddington Gold Project. The methods of calculation are described including the use of geostatistics. Reconciliations of actual production with predictions from reserves are carried out monthly and annually. To date there has been an excellent correlation with Production Estimates, based on both manual and geostatistical calculations.

Jan 1, 1987

By Armine F. Banfield

The Purpose of the Paper It is fitting that the first paper of a session on the Financial Aspects of Mining should be on the basic data upon which any financial discussion of a mining project must be based. The history of a mining project starts with exploration in an area considered geologically favorable for mineralization and culminates in the discovery of a body of valuable mineral material commonly known as a mineral deposit. Subsequently more detailed exploration establishes the approximate size, shape, tonnage and average grade of the deposit by surface and/or underground drilling, -surface trenching and/or underground workings. Some preliminary metallurgical testing and other studies, as required, are made at this time. Development work is then carried out to provide representative samples for determining flowsheet and metallurgical balances, preparing the deposit for production and establishing more firmly the grade and mining characteristics of the deposit. A feasibility study is then made of the engineering aspects of the project including the estimation of operating coats, the capital required to place the deposit into production, profit and return on investment. A valuation of the deposit

Jan 1, 1972

By Hugh K. Taylor

"With some justification, people have long complained about the indefinition of ore reserves. Perhaps they were led to expect too much; from former and easier definition practices in the once common underground mines with exposed and available assets, where the obsolete term 'ore in sight' was at least partly literal. But such mines have become rarer, and their underground development less affordable. For most projects, valuations and its definitions have thus been advanced from actual to prospective mines, leaving a very wide gulf between 'what is there' and 'what may happen to it'. This brings the double challenges of reduced geological and technical assurance and the protraction of economic uncertainties.This paper avoids the popular field of regional resources, being confined to what may possibly be mined within single or closely grouped deposits. For these, many estimates of tonnage and grade must be made, defined and declared long before assessment of feasibility; and the uncertainties of the latter make it an unsound base for defining the earlier quantities. Despite the best of intentions, implied or inferred promises may proveimpossible to honour.A simpler framework of definitions is suggested, to some extent reverting to an earlier dependence on supporting work rather than on opinions of economic assurance or future events that are more properly the functions of production and cash flow schedules."

Jan 1, 1994

By Owen Owens, W. P. Armstrong

Abstract- The process of arriving at the size and grade of: (a) a newly-discovered body of mineralization, (b) a potential ore resource, (c) an orebody proposed for mining, or (d) the ore reserves in a mine, requires fundamental geological, and geometrical determinations as well as physical and chemical analyses. This paper outlines geological and geometrical features considered critical, in the authors' experience, in realistic reserve determination. These are discussed under the headings "The Four Cs". They include the Character, type or nature of the mineralization; the Continuity of various types of mineralization in the deposit; various key concerns in the Calculation besides the mathematics; and the Classification section which refers to basic considerations in classifying a mineral estimate. It is suggested that the responsibility for the calculation of a Resource or Reserve should be that of a geologist experienced in the ore type under review. Further, it should be the responsibility of the board of directors of the company owning the deposit to ensure that a sufficiently experienced person is chosen to carry out the process.

Jan 1, 1993

By William C. Peters

The frustration encountered by exploration crews in connection with land acquisition could be graphed to show a correlation with the natural law that everything tends to become more so. Figure I shows a rather common, situation. The combinations of ingredients are almost limitless and the resulting brew is often poisonous to an exploration man. A single step, that of taking a series of deep soil samples is often delayed until some sense can be made from "floating" unpatented claims which are obscure in orientation as well as position, placer claims overlapping lode claims, location posts with empty Prince Albert cans, and claims with no apparent assessment work for ten years. Add to this some patented claims with¬out monuments, a state or federal withdrawal area which may or may not invalidate pre-existing claims, a loosely defined tunnel site, and some ranchers who understandably resent the separation of surface rights from mineral rights. The picture is familiar to exploration men. One approach to such problems is to ignore them until someone voices an objection -- but then an even more chaotic situation is likely to develop. Another practice is to stake new claims to cover all ground that is "open" at first glance and then find out if there are conflicts so that the new claims can be adjusted accordingly.

Jan 1, 1970

By J E. Everett

A block model of the orebody is used to plan a mine. The first requirement is to identify ore to be extracted, discarding waste, so as to meet target grade, generally in multiple analytes. Commonly, cut-off values are set for each analyte, so as to distinguish ore from waste. It will be shown that, if more than one analyte is important, this procedure is wasteful of ore and a composite cut-off function is preferable.A second requirement is to sequence the ore extraction so that the variability in ore grade is controlled: failure to do so will result either in low-quality ore being marketed, or excessive re-handling being required to blend the ore to reduce the grade variability.A third requirement is that the extraction sequence should be such as to control the amount of equipment movement required, enhancing the equipment productivity.The overall objective, to optimise the Net Present Value (NPV) of the mined ore, is simply stated but complex in realisation, since so many factors, such as target grade, grade variability, equipment choice, equipment movement, and downstream blending all have alternatives which can be traded off against each other, and all of which contribute to the costs and benefits making up the total NPV.There exist commercial packages for ore selection and mine planning. However, they are often of a ‘black box’ nature, and users are sometimes not fully aware of the criteria being applied. In particular, the treatment of quality as a multidimensional vector may be problematic. The purpose of this paper is to discuss some of the issues involved and to suggest an alternative set of approaches, which should complement existing commercial treatments.The discussion will be illustrated specifically by reference to the mining of iron ore, but the issues are relevant to a wide variety of mining situations

Sep 5, 2011

By M Aros, L Reilly

Iron ore is normally sold in bulk at certain specifications. These include iron grade and specific contaminant grades, typically silica, alumina, phosphorous and sulfur. These target grades are normally agreed between the mining company (producer) and the steelmaking company (customer).This study presents an alternative to traditional cut-off grade calculation, using linear programming that maximises the total ore inventories within a predefined mining envelope while meeting the specified targets. Providing a feasible mining sequence that maintains the target grade is not covered in this study.The method was applied to Fortescue’s operations. The complexity arising from differing ore quality within each mining horizon, variable yields and upgrades and the need to control iron and contaminant grades provided a good opportunity to test an alternative method of ore selection. The new method significantly reduced the time spent in cut-off selection and sensitivity analysis, and provided an optimised solution.CITATION:Aros, M and Reilly, L, 2014. Ore selection optimisation for an iron ore deposit using linear programming, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014, pp 345–350 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By J E. Everett

Ore selection is generally a highly subjective task, with emphasis on producing product with a consistent target grade matching a perceived market requirement. A composite selection criterion ‘Comp’ (a linear function of the grade vector) can be used to maximise ore tonnage at a specified target grade (in Fe and contaminants) extractable from a block model. The blocks correspond to the selective mining units, with grades interpolated from diamond drill hole data. An iterative procedure has been developed to identify the coefficients and cut-off value for the composite function ‘Comp’, maximising potential ore tonnage at target grade.Commonly, target grade is predetermined by marketing; however, there is no guarantee that maximising ore tonnage at a specified target grade maximises the potential value of the mine. If the value of ore could be expressed as a linear function of the grade components, then these coefficients would be appropriate for the selection criterion ‘Comp’. The cut-off value for ‘Comp’ would correspond to the marginal cost of production; all blocks with a ‘Comp’ score above the cut-off would be classified as ore; and the cumulative grade of these ore blocks would be the average product grade over the life of the mine.Unfortunately, no such value function for iron ore is generally available. Methods for estimating the value function are discussed, using the spot price and sensitivities based either upon operational tolerances for Fe and the contaminants or upon published price differentials. This approach has been applied to an anonymous Pilbara deposit with about one million blocks averaging 1.1 kt. It is shown how the optimal target grade, cut-off grade and maximum tonnage can all be explored as a function of marginal cost and iron ore price. Alternatively, given marginal cost and an iron ore price, the effects of changing the tolerances (and therefore the relative costs of the contaminants) can also be explored.It is suggested this procedure can enable informed decision-making for an iron ore mine. Rather than setting final policy for the entire life-of-mine, the method enables target grades and tonnage estimates to be revised by re-computation as the mine life proceeds to recognise changes in market conditions and knowledge about the resource.It should be emphasised that this paper is concerned with ore selection rather than ore sequencing. Appropriate ore selection is a necessary but not sufficient condition for maximising value. Having identified the set of blocks that potentially maximise value, the sequence in which they are mined will present a trade-off between producing at constant grade and extracting high value ore early. The sequencing issue is not considered here. It is shown that optimum ore selection for an open pit mine is independent of any consideration of discount rates, although ore sequencing will depend upon the time value of money if the product grade is to vary across time.CITATION:Everett, J E, 2015. Ore selection to maximise value, in Proceedings Iron Ore 2015, pp 443–448 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By J V. Lawless

Two types of low sulphidation epithermal deposits that have different gangue mineralogies and ore shoot geometries are recognised. One has laterally near-continuous ore shoots over a significant vertical interval that consist of quartz, chalcedony, pyrite, minor base metal sulphides and adularia, with electrum. The other type of deposit has discrete near-vertical ore shoots of a lesser vertical extent, that consist of quartz, pyrite, base metal sulphides, sulphosalts, electrum and in their upper parts barite, which are enclosed in veins of earlier quartz. The gold mineralisation in both deposit types is considered to be a co-precipitate of pyrite, with that in the first type of deposit produced by prolonged boiling in an upflow of a hydrothermal system (Upflow Deposits); an example is Waihi in New Zealand. The other type is produced by mixing, a deep water primed for gold deposition by prior limited boiling, with an iron-bearing oxidised condensate of the steam released by the boiling, in an outflow of a hydrothermal system (Outflow Deposits); an example is Thames in New Zealand. Early recognition of these different types of deposits can be used to develop mineralisation models of predictive value on which to focus exploration drilling. Early recognition of an Upflow Deposit promotes an extensive program to delineate the extension of the main ore shoot. In contrast recognition of an Outflow Deposit requires a more intensive approach to find individual ore shoots which, although smaller than those found in Upflow Deposits, may be high-grade, particularly if there is earlier mineralisation present to act as a protore.

Jan 1, 1999

By N. Schmalbein, L. von Ketelhodt, L. Kotelo

"The mining industry continues to remain challenged. Lower commodity prices, increasing labor costs and more importantly diminishing reserves are amongst some of the primary factors contributing to the difficulties faced. Ore sorting technologies have demonstrated their potential to improve the downstream beneficiation performance. The general processing route sees all primary crushed material milled for liberation and then processed in accordance with characteristics of the gold therein, i.e.: refractory golds would require direct leaching or oxidation whilst free gold would follow the conventional cyanidation process, after gravity concentration. Ore dilution increases the associated operating costs within each stage of this process. The opportunity to process the same throughput at a higher grade can only be achieved through pre-concentration. Sensor based sorting has been examined on numerous occasions by various gold producers. Test work carried out on different bulk low grade gold ores has shown the successful applicability of ore sorting to remove waste, whilst maintaining high recovery rates of gold. The results of a combined XRT/Laser sensor sorter have shown grade improvements of over 300% from feed grades of 0,25g/t to 1,15g/t at gold recoveries of 66% and waste ejection rates of 85%. This paper presents some of the results from the work undertaken by STEINERT with respect to gold sulphide ore sorting and presents a modelled financial scenario, which can enable a company to target and reclaim low grade ores.INTRODUCTION The mining and minerals processing industry presents with many different challenges including, volatile commodity prices, increasing labor costs and more importantly diminishing reserves. Conventional processing routes will continue to play a crucial role in the beneficiation process, however innovative methods of reducing operating costs and optimizing on the overall circuit performance is where technologies such as sensor based sorting come into the fore. Sensor based sorting as a dry mechanical process not only reduces water consumption by eliminating unnecessary waste but also reduces the requirements for reagents in the downstream processes. Sensor based sorting under dry conditions presents a highly efficient alternative to wet pre-concentration methods such as dense medium separation (DMS)."

Jan 1, 2017

By LIONEL E. BOOTH

ORE tests are made for the purpose of determining the correct methods of treatment for any particular ore. They should be conducted so as to insure that the results obtained in actual mill practice, on ore of similar grade and physical nature, will duplicate the results obtained in the test work. As the expenditure of many thousand of dollars may be involved in the building of the necessary mill, the testing of ores calls for extreme care and skill in handling laboratory machines, and a knowledge of actual practice to guard against the danger of obtaining results in test work that would be impractical to duplicate on a commercial scale. The importance of a correct sample of the ore is at once apparent. No matter with what degree of care the test 4rk is done, it loses its value when made on an unrepresentative sample. It is the first safeguard against future disappointments in the loss of capital and time. A number of failures in the past have been traced directly to faulty or lax methods in obtaining the ore sample.

Jan 1, 1924

By William Petruk

"Heap leaching is a developing technology for recovering native gold and electrum from low grade deposits and from tailings. Recovery depends on permeability of the rock and ore minerals, size of particles in the heap, and ore textures that influence exposure of gold grains to cyanide solutions. These ore textures include gold-bearing veinlets and microveinlets along fractures and microfractures, gold grains in porous minerals and rocks, and gold graim. occurring along grain boundaries of other minerals. On the other hand, small encapsulated gold grains arc not likely tote exposed even with fine grinding. Most gold grains that occtir along grain boundaries of other minerals can be exposed with a moderate to fine grind, but the. resulting material will be too fine-grained to be permeable in a heap. Such finely ground ore, as well as tailings from flotation operations, can however be prepared for heap leaching by agglomerating the material into porous briquettes. Oxidized and weathered zones above. orebodies are frequently amenable to heap leaching because the gold-bearing pyrite and arsenopyrite have become permeable by conversion to porous iron oxides and ferric oxyhydroxides. A review of ore textures in several types of gold deposits suggests that:(1) the gold in vein deposits would gtmerally be amenable to heap leaching of both oxidized ores and fresh non-refractory ores,(2) the gold in Carlin-type deposits and in volcanogenic massive sulfide deposits is not likely to be amenable to heap leaching fresh ore, but oxidized zones above the orebodies are generally amenable to cyanidation, and(3) the gold in porphyry copper-gold deposits and in Witwatersrand-type deposits would likely be amenable to heap leaching of both fresh and oxidized ores but with high cyanide consumption."

Jan 1, 1997

By J Jackson, M F. Young

"Ore is the economic portion of a mineral deposit that can be extracted economically. Hence an ore type is a classification of the ore based on one or more dominant characteristics in order to enable communication between unit operations and/or technical disciplines.In project evaluation, ore types are often defined early based on geological observations by geologists and initial metallurgical testing is based around this classification even though a number of processing options can be under evaluation. However, the geological drivers of performance for each of these processes can be very different and the ore type classification for one process may not be relevant for another. In operations an ore type, as either defined in the project evaluation phase or those that evolve with additional knowledge, is unlikely to provide the knowledge required across all the unit operations. The ore type has a meaning to someone but does not necessarily for all unit operations across the value chain.Geometallurgical or orebody knowledge has evolved through the consideration of multiple processes within the value chain, the improved understanding of variability of process performance within ore types and the effect on the complexity of the mineral extraction processes. Furthermore orebody knowledge has been moving from personal based knowledge and understanding to a more process oriented approach where measurement and spatial and process performance modelling is playing a greater role. Advances in mine planning and scheduling allow for both detailed analysis of the block model and the expected extraction processing attributes across various time scales. This capability of analysing and describing the complexity still requires to be communicated to the various unit operations, which may be beyond the traditional classification of an ore type.The limitations of an ore type and potential alternatives to enable the relevant information to be communicated to the relevant groups are outlined through a number of case examples across the value chain.CITATION:Jackson, J and Young, M F, 2016. Ore Type – Everything to Someone but Nothing to Anyone, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 267–274 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By Jodie Robertson, Isabel Barton, Cristian Caro

Prior to mining, all rocks contained in a mineral deposit must be placed in one of several categories known as ore types. Each ore type describes a different way that the rock will behave in processing. The ore type determines which process stream a particular mined unit will be sent to, sets expectations for process engineers and metallurgists, and forms the basis for recovery predictions and production estimates. At first, ore types are assigned mainly by geologists based on visible geological criteria (dominant ore mineralogy, estimated grade, rock type, alteration type). As metallurgical tests are carried out and process data accumulate, the resulting criteria may be factored into the ore typing process, typically as assays and recoverable metal using the relevant process(es). Other variables may also be incorporated into ore typing at operations if they are particularly important, such as grindability, preg-robbing, gangue reagent consumption, and the presence of especially deleterious minerals such as talc or smectite. The mine operation department may also redefine ore types and/or process destinations based on economic criteria. A “best” ore type is designated that (in theory) best describes how the rock will behave in processing. Codes representing this ore type are entered into the drill-hole database, then interpreted on cross sections and level plans, and finally added to the block model. Ore types are iteratively reexamined and adjusted over the life of a project. Major difficulties in effective ore typing are (1) lack of communication between geologists and metallurgists, (2) the imprecision inherent in imposing clean categories on messy natural systems without discrete divisions, (3) the need for ore types to provide useful information for a wide range of processes, (4) difficulties in scaling up laboratory test results to mine production, and (5) conflict among geological, metallurgical, and economic criteria for ore typing.

Jul 1, 2024

By Jodie Robertson, Isabel Barton, Cristian Caro

Prior to mining, all rocks contained in a mineral deposit must be placed in one of several categories known as ore types. Each ore type describes a different way that the rock will behave in processing. The ore type determines which process stream a particular mined unit will be sent to, sets expectations for process engineers and metallurgists, and forms the basis for recovery predictions and production estimates. At first, ore types are assigned mainly by geologists based on visible geological criteria (dominant ore mineralogy, estimated grade, rock type, alteration type). As metallurgical tests are carried out and process data accumulate, the resulting criteria may be factored into the ore typing process, typically as assays and recoverable metal using the relevant process(es). Other variables may also be incorporated into ore typing at operations if they are particularly important, such as grindability, preg-robbing, gangue reagent consumption, and the presence of especially deleterious minerals such as talc or smectite. The mine operation department may also redefine ore types and/or process destinations based on economic criteria. A “best” ore type is designated that (in theory) best describes how the rock will behave in processing. Codes representing this ore type are entered into the drill hole database, then interpreted on cross sections and level plans, and finally added to the block model. Ore types are iteratively reexamined and adjusted over the life of a project. Major difficulties in effective ore typing are (1) lack of communication between geologists and metallurgists, (2) the imprecision inherent in imposing clean categories on messy natural systems without discrete divisions, (3) the need for ore types to provide useful information for a wide range of processes, (4) difficulties in scaling up laboratory test results to mine production, and (5) conflict among geological, metallurgical, and economic criteria for ore typing.

Nov 8, 2023

By Nolberto Moreno Borjas

This paper outlines the detrimental impact that unblended ore can have on the Ni and Co recoveries and the ore slurry density with real data from the Caron low-pressure ammonia leaching process for the Punta Gorda ore. The author briefly discusses the reason for the decrease in slurry density that the process experiences. The lower metal recoveries in the process that are caused by the unblended ore chemical characteristics and variations are shown with a data base statistical analysis drawn from the results obtained from a pilot test, designed with different ore bypassed from the normal process flow and a similar ore from a similar metallurgical treatment. Keywords: Ni-Co Laterite, Caron Process, Ore Blending, Slurry Density, Metal Recovery

Jan 1, 2004