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Efficient project planning during the detailed feasibility to final engineering stages of a project requires not only the accurate prediction of the grade, tonnes and recovery, but their degree of variability as well. An understanding of the major parameters involved in the grade and tonnage estimates is essential, and the communication to those receiving the results is most important. The personnel involved in the project require more than just a global reserves classification. Quality parameters other than grade should be evaluated as carefully as the estimate itself. This paper does not present any novel ideas to overcome or enhance any of this. Rather, it takes a step back and tries to look at the global picture of requirements for proper project planning.

Jan 1, 1987

By Tullemans FJ

This paper describes the general approach to ore reserve estimation and mine planning used at the Kidston Gold Mine. The geological setting and exploration is briefly summarized for background information.A geostatistical study of the deposit was carried out to determine the geological ore reserve. This was confirmed using a manual polygonal technique. Optimum pits outlined by a Lerchs-Grossman open pit design algorithm were manually smoothed allowing mineable reserves to be calculated. Mine production schedules based on kriged block grades and tonnages are continuously updated using production blasthole assays. An arithmetic mean technique of block grade estimation has proved successful to date. After milling approximately 4.9Mt of ore, the mill grade of 2.13g Au/t is only 0.5% above the mine estimate of 2.12g Au/t. The difference in contained gold between "As staked" blasthole reserves and kriged mineable reserves is 3.8%. The application of blasthole kriging as a basis for ore/waste classification in erratically mineralized areas is being evaluated. Planned future developments are briefly mentioned.

Jan 1, 1986

Mining has traditionally been seen as a relatively risky business. Exploration is expensive and the failure rate is high, while start-up costs commonly run to many hundreds of million dollars. To justify the risk and expense, the returns from successful projects must also be high. Accurate estimation of mineral resources and reserves is fundamental to the processes of optimising returns and managing risk in mining developments. Systematic development from initial exploration through a series of development stages enables expenditure and risk to be balanced. As a consequence, large scale modern mine are more akin to manufacturing businesses. This paper examines the life history of a mineral reserve estimate from the perspective of a large mining company against a background of modern estimation and reporting requirements. It will also touch on what constitutes, in the author's opinion, `best' practice in reserve estimation, and how this concept can be spread more widely. [Abstract to be re-written and reduced to 100 words]

Jan 1, 2003

By A. G. Pasamehmetoglu, N. Celebi, K. Erarslan

A deposit evaluation system has been developed for a proposed new mine in the basin around Collolar in Turkey. It includes compositing, gridding and reserve estimation facilities and takes account of the economic value of the pit and the pit bottom elevation

Sep 1, 1991

By Kenneth M. Haley

THE development of Reserve Mining Company's pelletizing practices began in 1949 in a pilot plant located at Ashland, Kentucky. Three years later the participating companies -Armco Steel Corporation, Cleveland Cliffs Iron Mining Company and Republic Steel Corporation concluded the work and the small plant was shut down. Oglebay Norton and Company was the operating manager and Armco Steel Corporation furnished labor and services. Arthur G. McKee and Company were the designers and constructors. The equipment flow sheet that was employed in that pilot operation is shown in Figure 1. This was Reserve's first step from the laboratory work per-formed by the Mines Experiment Station of the University of Minnesota in developing a commercial operation. The plant used New York state concentrate, purchased from Jones and Laughlin Steel Corporation's Benson Mine. This concentrate, minus 14 mesh, 64.3 per cent Fe, 5.7 per cent Si02, was processed at Ashland to 80 per cent minus 325 mesh in conventional ball mill, classifier, thickener, filtering

Jan 1, 1961

Jan 1, 1978

SUCCESSFUL development of a new process for heat hardening of pellets made from taconite concentrates was announced by Arthur G. McKee & CO., steel plant engineering and construction firm of Cleveland, and Allis-Chalmers Mfg. Co. An order for the design, engineering, and materials for a plant incorporating the process, has been received by the McKee Co. from the Reserve Mining Co. for its new E. W. Davis Works at Silver Bay, Minn. It is estimated that this plant will cost around $19 million and when in full operation, will turn out 12,000 tons of pellets per day.

Jan 10, 1954

By F. W. Wellmer

"This paper discusses the changing nature of reserve/consumption ratios, using data from Canadian operations and focussing particularly on copper.IntroductionStudies in world metal consumption and world metal reserves are done regularly by the U.S. Bureau of Mines, the German Federal Institute of Geosciences and Raw Materials, and other institutions. Formerly, on the basis of these data, the following figures were calculated:• a static lifetime of reserves-reserves at year end divided by the consumption of the previous year;• a semidynamic lifetime of reserves-reserves at year assumed constant growth rate.These figures were severely criticized because they were purely theoretical and did not consider the availability of the raw materials.Recent practice is to calculate reserve/consumption ratios (R/C ratios) for periods(1) or for different years(2,3) and to interpret the trend. For base metals, these R/C ratios are increasing (Table 1). This had led to the conclusion that today the relative availability of base metal reserves has increased as compared to 10 or 15 years ago(4,5) As there are normally numerous deposits for each commodity, the anticipated production rates of deposits are irrelevant to this conclusion as long as the statistical distribution of possible production rates does not change significantly.The above conclusion is only justified if the quality and the nature of the data base remain the same. This is certainly the case for the consumption data. It is also assumed for the quality of the reserve figures, which usually take into account only proven and probable reserves. For the nature of the reserve figures, however, this does not seem to be true.Undoubtedly, the reserves increased in absolute terms between 1966 and 1978. To put the absolute reserve figures into perspective, it is common, as said above, to compare them with the mine production, which increased in the free world between 1966 and 1978; e.g. for copper by 40%, for Pb by 17% and for zinc by 36%. However, the reserves are also influenced by other factors, such as average size of the mines, changes in the grade of the mined ore, price-to-cost relationships and the like.The purpose of this paper is to examine the nature of the reserve figures in more detail. Because the completeness of mining data published in Canada is rather exceptional, Canadian .data serve as an example and it is assumed that the conclusions can be extrapolated to other mining countries or at least to those with free market systems."

Jan 1, 1981

The economic future of the Palmer Goldfield lies with both the gold mining and the tourist industries. An equitable solution to the competition between the two involves putting a dollar value on the historical evidence there for our Australian heritage.On 23 October 1986 the Queensland Government gazetted the Palmer River Reserves R16 of 16 200 hectares, in recognition of the competing land uses emerging in the region. The intention is that historically significant gold mining sites and relics will be preserved in situ with provision for continued gold exploration and mining.This paper explores and explains the administrative process of achieving a set of Management Guidelines for Rl6 within the Queensland political milieu. The result of that process is the achievement of some of the highest preservation standards in Australia, prohibiting surface disturbance of defined Category 1 sites, and no mining proposal has yet been refused approval.The Palmer Goldfield R16 experience is a major step in achieving a co-ordinated approach to both current mining and preservation of Queensland's mining heritage.

Jan 1, 1990

By Carl Zapffe

THE manganese ore reserves of Lake Superior, because of their location and nature, have recently achieved a marked degree of importance as compared with the world's manganese reserves. To appreciate fully the significance and the adequacy of this reserve, one should understand how such ores are used, where obtainable, the quantity used, possible avenues for increasing use or application, and the chemical and physical characteristics of the available ores. Only with that data at hand, is it possible to arrive at a convincing answer to the question whether the reserves of manganiferous iron ores are adequate to satisfy the annual demand of the presently known iron ores for the full life of the latter. That they should last is vital; and to ascertain whether they will last was the purpose of the present investigation, which marks the first attempt to study these Lakes Superior reserves. The Lake Superior region possesses and supplies the full assortment of iron ores needed for the conversion of ore into pig iron and steel ingots and castings. These ores are named bessemer; low-phosphorus and high-phosphorus non-bessemer, manganiferous and siliceous; and to include the term aluminiferous, would be in keeping with the most recent no men clature adopted by some dealers. About 35 or 40 years ago, perhaps less, most of the Lake Superior ore which is being used today was the material then considered either useless or too poor for immediate use; perhaps it was considered no more than a future reserve. An examination of the analyses of ores and the guarantees in the sales of those older times, convinces one that the opinions of those days must have been governed by only small differences in analyses. Some grades of ores used today in substantial amounts were used most sparingly only one or two decades ago. The relative quantities of the different ores used is ever changing; and, bit by bit, the metallurgy and the opinions are every changing and the prejudices against certain ores and practices decrease. This is unquestionably more pronounced for the manganiferous ores than for any other kind. If, when using the present data for manganiferous ores, we will only be

Jan 5, 1927

By V. R. Garfias, R. V. Whetsel

As pointed out in previous studies, estimates of petroleum reserves if they are to be of value must not only presuppose a clear understanding of what is actually meant by reserves but must be subject to constant revision to conform with changes in their component factors. When such estimates are analyzed it must be clear that it is virtually impossible to obtain comparable figures reflecting the same degree of accuracy, to represent the reserves not only in various countries, but at times even of different fields in the same country. Estimates of reserves in the United States, subject to frequent independent checks, are obviously more reliable than those furnished, for instance, by the Soviet Government, as the latter must be accepted at their face value and are open to the suspicion of being made to conform with predetermined programs of propaganda. Any tabulation of the reserves of all producing countries, therefore, gives a total that is misleading, as the component items arc not arrived at on the same basis and therefore are not homogeneous in a true sense. Only a fraction of the petroleum stored underground, usually associated with natural gas, is or can be brought to the surface, and although practically all the natural gas underground can be rccovered, in actual practice in some fields a large part of the gas that reaches the mouth of the well is wasted. It is thus estimated that in the United States only some 25 to 35 per cent of the petroleum underground in proven fields is actually economically recovered. Estimates of reserves, therefore, should make clear the distinction between the known amount of oil underground in producing fields and the portion that actually can be brought to the surface. It cannot be overemphasized that as a result of the operation of the "Law of Capture," which controls subsoil ownership in the United States on comparatively small landholdings that seldom if ever cover the entire producing area, the oil fields are not as economically exploited as some forrign fields, and that as a result (were it not for the easy accessibility of the domestic market, the largest in the world) some American production would now be unprofitable in open competition with foreign oils.

Jan 1, 1939

By R. V. Whetsel, V. R. Garfias

As pointed out in previous studies, estimates of petroleum reserves if they are to be of value must not only presuppose a clear understanding of what is actually meant by reserves but must be subject to constant revision to conform with changes in their component factors. When such estimates are analyzed it must be clear that it is virtually impossible to obtain comparable figures reflecting the same degree of accuracy, to represent the reserves not only in various countries, but at times even of different fields in the same country. Estimates of reserves in the United States, subject to frequent independent checks, are obviously more reliable than those furnished, for instance, by the Soviet Government, as the latter must be accepted at their face value and are open to the suspicion of being made to conform with predetermined programs of propaganda. Any tabulation of the reserves of all producing countries, therefore, gives a total that is misleading, as the component items arc not arrived at on the same basis and therefore are not homogeneous in a true sense. Only a fraction of the petroleum stored underground, usually associated with natural gas, is or can be brought to the surface, and although practically all the natural gas underground can be rccovered, in actual practice in some fields a large part of the gas that reaches the mouth of the well is wasted. It is thus estimated that in the United States only some 25 to 35 per cent of the petroleum underground in proven fields is actually economically recovered. Estimates of reserves, therefore, should make clear the distinction between the known amount of oil underground in producing fields and the portion that actually can be brought to the surface. It cannot be overemphasized that as a result of the operation of the "Law of Capture," which controls subsoil ownership in the United States on comparatively small landholdings that seldom if ever cover the entire producing area, the oil fields are not as economically exploited as some forrign fields, and that as a result (were it not for the easy accessibility of the domestic market, the largest in the world) some American production would now be unprofitable in open competition with foreign oils.

Jan 1, 1939

The mineral sands deposit of Australia pose a number of unique, and quite unusual problems for the explorationist. Most concentrations of heavy minerals have been found in the unconsolidated sediments of the east and west coasts. Mineral sands mines open larger areas per tonne of concentrate than most other mines. This is because of the shallow depth of the sands containing the heavy mineral concentrations. Obtaining tenure can, by mining industry norms, be a massive operation due to the large areas to be examined and, particularly on the east coast, the large number of land holders encountered. A commercial development can still emanate from anything ranging from a small high grade body to a massive low grade deposit, the prices currently being obtained for rutile, zircon, ilmenite and monazite, although still modest when the remarkable properties and applications of these minerals are considered, is nevertheless attractive when compared to the prices being obtained for the base metals with the exception of gold. The current interest in the location and definition of new reserves of heavy minerals reflects this relative price attractiveness. The discovery of heavy mineral concentrates does not necessarily ensure the early establishment of a mine. Because of the cyclical nature of market prices, the average returns likely over the life of the mine permit the employment of only relatively simple, low cost, mining, concentration, and separation processes. If difficult mining conditions are encountered or the removal of small contaminants by complex metallurgical processes are required, then higher market prices must be obtained. Until the market is prepared to pay more for the commodities so produced, the resource will not be economic and lower cost reserves will be mined in preference. The Australian mineral sands industry has seen many closed mines because of past failures to properly assess the data base collected during the exploration and development phases of the failed projects.

Jan 1, 1987

By Twemlow GL

The accounting profession in Australia and overseas has taken up the responsibility of setting standards specifically relating to the minerals and energy industries. Australia led the way with AAS7 Accounting for the Extractive Industries. This statement was issued in 1976 and amended 1977..It largely deals with accounting for preproduction expenditure and uses the term "economically recoverable reserves". It does not require disclosure of reserve quantities or values in balance sheets or as supplementary information in financial statements. The United States accounting profession in 1982 finally resolved an accounting standard in the same area as AAS7-SFAS69 Disclosures About Oil and Gas Producing Activities. It applies only to oil and gas producers, but has extensive disclosure requirements, including proved oil and gas reserve quantities. Current developments indicate that Great Britain is about to follow the US example. At this time in Australia, AAS7 or some other statement relating to the extractive industries has not been issued as an approved accounting standard by the ASRB. Standards issued by the ASRB are binding in law.

Jan 1, 1987

By K. A. Grace

Reserves are the basic foundation of any mining enterprise, but a lack of understanding of the concept of resources and reserves is still a frequent cause of failure in mining ventures. A review of the development of the resource-reserve concept emphasizes the necessity for a common language, and the classification system as set out by the US Geological Survey and Bureau of Mines is advocated as the basis for this. Because of its strong economic connotation, the term reserves should be severely restricted in its use, and should encompass mining and processing factors. Modifications to the basic definition of reserves to accomplish this are proposed. Caution must be used in the quantification of undiscovered or hypothetical resources, particularly in juxtaposition with known resources data.

Jan 1, 1985

By Kenneth A. Grace

Each and every mining operation from a simple sand-and-gravel pit to the largest integrated mine-mill-concentrator-smelter-refining complex has, as its foundation, a quantity of extractable natural resource the reserves. Without reserves, there is no mine, and any concentrating or extracting plant, no matter how sophisticated, is simply so much scrap metal. And, of course, without resources there are no reserves. It is remarkable, therefore, especially in this age of careful planning, high quality engineering, and state-of-the-art financial analysis, that such a fundamental and vital item is so little understood and the subject- of so much confusion. Time and time again it has been the experience of the author, when called in to a mining operation that has run into trouble in reaching projected production targets, to find that the designed-for tons were not reaching the concentrator/extraction plant, and/or the grade of such tonnage was substantially below the forecast and design grade of the plant. The mill blames the mine for delivering below standard tons and/or grade and the mining engineer blames the geologist for overly-optimistic assessment or incorrect interpretation of the deposit. The geologist blames the mining and metallurgy division for wrongly interpreting his data and conclusions, or simply fouling-up a fine orebody.

Jan 1, 1983

By Charles L. Allie

Since Reserve Mining Co. began commercial operations at Silver Bay, MN, some 25 years ago, major improvements in taconite processing technology have become available. In addition, significant new government standards have been imposed on industrial operations. By implementing a $370-million modernization program, Reserve was able to accomplish two major company objectives: the quality of concentrates produced from the Peter Mitchell mine has improved, and the operation meets both present and foreseeable environmental standards. Process modifications at Reserve were designed to: •Reduce the pellet silica content from 9% to 5%; •Increase the pellet iron content from 62.5% to 65.8%; •Implement a tailings disposal system utilizing "best available technology" water quality controls; and •Reduce air emissions by installing "best available technology" air emission controls. By adding dry cobbing, fine screening, and flotation to the concentrating process, pellet silica content has been reduced; the process reclaims and reuses all process waters; all tailings are stored in a zero discharge tailings basin; and all air emission standards are being met. Initial Beneficiation at Silver Bay Reserve's Peter Mitchell mine at Babbitt, MN, is on the eastern end of the Biwabik iron formation. The open-pit mine is approximately 16 km long, 0.8 km wide, and presently has a maximum depth of about 50 m. Principal constituents of the ore body are magnetite, quartz, and iron-magnesium silicates. The company's large commercial plant began operating at Silver Bay, 75 rail km from the mine, in 1955. Facilities have historically had the capacity to process 31.5 Mt/a of taconite, containing an average 24% magnetic iron, into 11 Mt/a of iron ore pellets. Reserve's initial beneficiation process-which existed up to early 1979-consisted of two crushing stages at the Babbitt mine site, two additional crushing and screening stages at Silver Bay, grinding in a conventional rod-ball¬regrind mill circuit, size classification with cyclones, and concentration with magnetic and hydraulic separators. Concentrate produced by that circuit assayed 65% iron and 8.5% silica, with a screen analysis of 94% -44 µm, and a surface area of 9300 cm2/cm3. Pellets produced from this concentrate assayed 62.5% iron and 9% silica (dry basis). Construction began in 1977 to modify Reserve's operation. Process modifications were designed from pilot scale operations that had been operated and researched by Reserve for more than 10 years. There were two design restraints imposed on the process: economic constraints that Reserve continue to use much of the existing processes and structures in the new operation; and a substantial number of government-imposed permit constraints. In effect, the tailings process was designed first and then a concentrating process was developed that would "fit" the tailings disposal system. Operation of the modified process began in June 1980. Crushing Remains Unchanged No changes in process flow were made at either the Babbitt mine and crushing plant or at the Silver Bay fine crusher. Gyratory crushers reduce run-of-mine taconite to -90 mm-diam at the mine. Taconite is then transported to Silver Bay by intra-plant railroad. There are 10 fine crushing lines. Each consists of a double deck screen, followed by a heavy duty short head crusher, a second double deck screen, and second short head crusher. All screen undersize material bypasses the crushing lines, resulting in an open circuit crushing process. Fine crusher product is approximately 98% - 20 mm, 80% -12 mm, and 50% -10 mm in diameter. Each fine crusher line processes about 400 t/h of crude taconite. Cobbing Provides Aggregate for Tailings Dams The first major process change was the addition of dry cobbing, a dry magnetic separation step between the fine crusher and concentrator. Dry cobbing serves two major purposes in the new process. Its principal function is to provide large volumes of dry coarse aggregate for use in construction of tailings dams. This process rejects about 20% of the fine crusher product as tailings with a size analysis of 98% -20 mm and 50% - 10 mm. These tailings are free draining and have high frictional shear strengths-two key requirements for dam building aggregates. Fine crusher product is conveyed to a new dry cobbing building. Here crushed ore is discharged into one of two 30-minute capacity surge bins. Crushed ore is withdrawn by 12 constant speed conveyor belts; each discharges 500 t of crushed taconite into a dry cobbing machine. Each machine consists of a 3-m-long riffle splitter and two vari-

Jan 12, 1980

By J. M. Bugbee

THE engineer and the conservationist agree that effective water drive is the desirable reservoir production mechanism. Water drive may result either from the expansion of edge water, the reservoir water bordering an oil pool, or from the artesian flow of edge water from the outcrop. Thus, the extent of the reservoir has an important bearing upon both the rate and the ultimate quantity of water influx to an oil pool. Lens-type reservoirs are generally recognizable, but the complete structure of the more important domal types, having possible limitations from crestal and synclinal faulting, is not well understood. The delineation from cores, electrical logs and exploitation phenomena of the crestal portions of reservoirs is increasingly exact. This paper suggests that inference from these factual pictures, combined with the scattered well and geophysical data of the synclines and with consideration of the dynamics of structural formation, may be applied to solving the complete geologic structure. Since faulting on the domes and in the synclines may effectively seal and thus limit the size of a reservoir and bar additional water influx, consideration of geologic structure and its possible effects is essential to complete analysis and prediction of reservoir performance.

Jan 1, 1942

By I. Haskett

ABSTRACT The Redwater pool, in north-central Alberta, was discovered in October, 1948, and at the end of 1950 was about 85 per cent developed. Production is from a Devonian coral limestone reef and is found at an average depth of 3,150 feet. The pool has an estimated .productive area of 37,000 acres, and a maximum oil zone thickness of slightly over 200 feet. Wide variations exist in both type and values of porosity, with the average value determined for the reservoir being 6.16 per cent. The total stock tank oil in place is about 1.24 billion barrels. The crude has a saturation pressure of 485 psig, com-pared to the original value of 1,050 psig for the reservoir, and the principal recovery mechanism so far has been the natural water drive. Cumulative production to January 1st, 1951, has been about 15.5 million barrels. These withdrawals resulted in a reservoir pressure decline of slightly over 100 psi. Predictions of future behaviour indicate that the water drive will not be of sufficient magnitude to maintain the reservoir above saturation pressure past 1953, and that, with natural depletion, the pool will be produced largely by a solution gas drive. Pressure maintenance by water injection has been considered and the possibility of raising the pressure to the original value of 1,050 psig is also discussed. INTRODUCTION WITH the discovery of the Lewduc pool, early in 1947, the Devonian limestone became the major geological formation contributing to Western Canada's rapidly growing petroleum reserves. Redwater, discovered in October, 1948, is now the largest known Devonian pool in Canada, with a recoverable reserve estimated at approximately 500 million barrels. Until recent years, the knowledge of the nature and characteristics of this type of limestone reservoir has been comparatively limited.

Jan 1, 1951

By W. F. Kieschnick, C. C. Miller, E. R. Brownscombe

The possibility has been mentioned that large pressure gradients in a solution gas driven field caused by high production rates might lead to a reduction in the ultimate recovery obtainable compared to that which would be obtained by a very slow rate of production. In the present study the reservoir conditions accompanying a high rate of production and the corresponding ultimate recovery were compared with those obtained if the reservoir were produced at some marginal rate throughout its entire life. The method of calculation involved the application of fluid flow - material balance analysis to a series of successive steady state conditions in the reservoir. In the case studied very little difference in recovery was obtained at the abandonment pressure. An analysis of the basic factors involved indicates that the sane results would hold for considerable variation in properties of reservoir fluids, permeability of the formation or well spacing. Even if the reservoir has a water drive it appears that no harm will be done by- open flow production if the rate is cut back before any appreciable free gas is produced. However, any condition which leads to disproportionate withdrawal rates and which causes large pressure differences over large areas might result in substantial loss in ultimate recovery. INTRODUCTION When the pressure declines in a reservoir, gas is evolved from solution causing a shrinkage in the reservoir oil so that a stock tank barrel of oil with its residual dissolved gas occupies a smaller volume than originally. For a given reservoir oil saturation, therefore. stock tank oil content will be higher at the lower pressure. At the same time the evolved gas which remains in the reservoir reduces the reservoir oil saturation, and this would be expected perhaps to cause a reduction in stock tank oil content. However, around the well the shrinkage occurs so rapidly that stock tank oil may actually accumulate in this region in spite of the simultaneous reduction in reservoir oil saturation. If this accumulation should continue, spreading into a larger zone, the loss might be appreciable and because larger pressure gradients accompany higher rates the accumulation might possibly be large if wells are produced at too high a rate. It is the purpose of this paper to determine the effect of rate of flow on ultimate recovery by solution gas drive. The problem under consideration involves the unsteady state flow of oil in a closed radial system from which oil is produced by the evolution of gas as a finite drawdown is estalllished and the reservoir pressure declines. A somewhat similar unsteady state production problem dealing, however, with a linear system has been considered by Muskat and Meres, but these authors do not discuss the effects which rate may have on recovery. Other methods have been reported for estimaling recovery as a function of pressure decline when producing at an infinitesimal rate, and Muskat and Taylor' have shown the effect of fluid and reservoir characteristics on recovery under these conditions. Assuming steady state to exist, Babson has given a procedure for computing the decline in well productivity as the field is depleted, and Moyer has combined these methods to estimate abandonment conditions and the resulting ultimate recovery. These latter approaches to the problem either do not consider the effect of rate or assume steady state can be established. In detail this paper presents the behavior of the reservoir producing under unsteady state conditions and considers the effect of production rate during this unsteady state flow on the recovery attained. The analysis also shows that there will exist at abandonment a type of steady state, and on this basis a method has been clevelopetl for rapid calculation of abandonment conditions.

Jan 1, 1949