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Western Mining Corporation has grown from a small gold exploration and mining company, funded by large established mining companies, into a large multi-commodity and multi-national mining company with shareholders who no longer have the same understanding of mining as the founders. Ore reserve calculation methods and reporting procedures have gradually changed throughout the group during this growth. These changes have been led by the newer mines, in particular the Kambalda nickel mines, where the need for more global, less conservative reserves were required to justify capital and forward sales contracts and to inform shareholders of the true worth of their company. This change in attitude to reserves has flowed back to the gold mines and has allowed a better informed management and investing public to plan for the future. Management of the calculation of reserves remains the responsibility of individual mining operations, but a corporate reporting and management structure exists through the office of the Director of Exploration and divisional chief geologists who strive to maintain standards of calculation and reporting. Specialist ore reserve geologists are starting to justify their place in the organisation, particularly at the larger operations. Reporting to the new AusIMM Standards is fully supported, although the amount of supplementary information requested will need to be considered carefully because of the large number of factors that make up even the simplest reserve.

Jan 1, 1990

In recent years stricter requirements imposed variously by the Companies Acts, auditors and the Stock Exchanges have resulted in annual financial statements of mining companies becoming more detailed, informative and useful. Standards of reporting on ore reserves have not kept pace with the improvements in financial information disclosure, despite the fact that ore reserves are usually the most important asset of a mining company. The ore reserve reporting practices of fifteen leading Australian mining companies are analysed against important specific criteria. In terms of detailed and meaningful disclosure, there is scope for major improve- ments in annual ore reserve reporting Practices.

Jan 1, 1981

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

The reliable estimation of ore reserves in mineral sand deposits depends on drilling methods and assay techniques that have been specially developed within the industry. Improvement of these techniques is a continuing process, as variations within and between deposits are highlighted during the actual mining operation. Constant monitoring of metallurgical losses along with mineral production allows comparison of mineral tonnages accounted for by mining, with original calculated reserves. A review of ore reserves in the Jerusalem Creek field from scout drilling in the sixties, through mining in the seventies, shows the progression from understatement prior to mining, to the present when more than two thirds of the reserves have been depleted.

Jan 1, 1979

By LESTER W. STRAUSS

FOR fifteen months after the other dominions of the British Empire and the entire so-called sterling 11loc loosed the shackles that bound the111 to the gold standard, South Africa, giant among gold-producing nations, remained stubbornly attached to gold at the traditional ratio of 85 shillings in currency to one ounce of gold. But eventually even South Africa had to heed the dictates of trade and the obvious interests of its great gold-mining industry. In December, 1932, South Africa's currency severed its golden bonds. Today the South African pound is 011 a par wit11 the British pound.

Jan 1, 1935

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 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

Errors in ore reserve estimation can occur during drilling and sampling, sample preparation and analysis, geological logging and modelling, database construction, statistical or geostatistical evaluation, selection of economic parameters, selection of ore reserve method and assessment of mining constraints. Core sample recovery can be a major source of error, and it is proposed that the modelling of grade, metal accumulation and thickness should be accompanied by the modelling of core recovery (or core loss) so that for each ore block a weighted block recovery factor is obtained. This gives a good indicator of the reliability of a reserve estimate. It is suggested that a resource reliability rating (RRR) system be established to quantify what is meant by geological assurance and to combine this with an estimate of the precision of estimation as gained by geostatistical analysis. Proven and probable minable reserves would be those with an RRR better than 50% and a precision of estimation better than 20%

Dec 1, 1996

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

Due to the relatively remote location of the St. Anthony Mine, the high cost of transportation and milling, plus the low grade nature of the deposit, the United Nuclear Corporation began investigating methods of mechanical upgrading approximately eighteen moths ago. This investigation culminated in the installation of Model 17 and Model 18 ore sorting machines. The machines are marketed in the United States and Canada by Ore Sorters of Canada (Ltd.). The installation of this advanced technology will enable United Nuclear Corporation to fully realize the residual potential of St. Anthony.

Jan 1, 1979

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 R. J. Johnston

"INTRODUCTIONPoint Mines is located about 65 miles east of Hay River on the South Shore of the Great Slave Lake. It is connected to the Northern Alberta Railway System by the Great Slave Lake Division of CN Railways at Roma Junction, Alberta.The operation started in the fall of 1965 with a capacity of 5000 t.p.d. An addition was put into operation late in 1968 to bring the capacity up to 8000 t.p.d. The present milling rate is 11,000 t.p.d.The location of Pine Point Mines is such that long end cold winters are to be expected end temperatures of lower than -200F are encountered from late October to late March, with extended periods of -300F being common in January and February.It was recognized by Cominco engineers during the initial design period that since freezing would be encountered with open pit ore somewhere in the crushing circuit, the problem was to reduce it as much as possible. Other mines, working under similar conditions, found that the fine ore bins feeding the grinding circuit were the main problem area. The decision was reached, therefore, to have heated fine ore bins and to make sure thst the ore was sufficiently warm to prevent freezing.CRUSHING PLANT FLOWSHEETThe crushing plant has a standard open flow circuit (flowsheet). Ore from the stockpile is loaded into R-50 Euclid trucks by Caterpillar 992 Front End Loader with 11 cu. yd. bucket and dumped into a 42 x 65 C.A.C. Superior Crusher driven by a 300 HP motor. The crusher is set at a nominal 5 inches. The ore falls through into a 100-ton surge bin. There are high level and low level nuclear gauges to allow the primary operator to optimize for optimum orientation."

Jan 1, 1972

By Williams, J. A.

THE Alaska Juneau mine has been developed through an adit driven at the elevation of the top of the mill and all mining is done above this main haulage level. As a result of wholesa1e"mining operations about 11,000 tons rock containing one dollar' per ton in gold is, hauled to the. concentrator during every 24 hr. Due to the method of mining, whereby a system of oreways delivers-the.ore direct from the stope to the bottom level of the mine, no tramming of ore is done on any of the upper levels. However, ;in doing exploratory drifting and crosscutting on the upper levels, the broken material is trammed by hand in 1-ton 18-in. gage cars to a nearby raise connecting with one of the several oreways. This constitutes the only tramming operation except that on the main level.

Jan 1, 1931

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.

Nov 8, 2023

By A Millar, B Wraith

Process plants are characterised by variability of performance over a wide range of time-scales; reflected in fluctuations in metal recovery, concentrate grade, plant throughput and reagent costs. In turn, these fluctuations impact financial metrics such as operating costs and revenue. The primary cause of plant variability is variation in the physical, lithological and mineralogical characteristics of the ore fed to the plant. The variability of the ore is driven by the intrinsic heterogeneity of the geology and mineralogy of the orebody, the mining method and mine production plan, the capacity to stockpile and blend, as well as the plant flow sheet and the level of plant automation. Whilst the impact of ore variability on process plants is universally recognised, it is rarely quantified in financial terms. Consequently, opportunities to reduce its impact are often overlooked due to the lack of a basis for a quantifiable cost-benefit analysis to justify improvement initiatives. This paper will present case studies using production data from the Renison tin concentrator and a zinc concentrator. These case studies demonstrate that as the standard deviation of plant head grade increases (as a proxy for ore variability), plant metal recovery subsequently reduces. The metal recovery is then converted into plant revenue losses, to quantify the economic impact of ore variability. The Renison case study demonstrated that whilst a very rare occurrence, revenue losses were as high as 34 per cent (relative to the baseline) when standard deviation was at its highest. The zinc concentrator case study demonstrated that revenue losses were as high as 6 per cent (relative to the baseline) when standard deviation was at its highest. Options are available for reducing and managing ore variability in the process plant. These options include changing mining practices so that the ore is fed to the plant with less variability, more advanced process plant control systems and the use of predictive geometallurgical models.

Aug 24, 2022

By Donald E. Ranta

An ore zoning technique developed by Climax geologists during the past forty years has been used to contour drill-hole assay values on cross-sections for fourteen porphyry molybdenum deposits in western North America, including the Climax and Henderson orebodies. Detailed geological studies of these large, complex deposits are essential in determining ore controls, which are the factors most critical to the zoning of MoS2 assays and to conceptualizing geologic models. The technique provides a detailed representation of the size, shape, grade distribution, and geologic continuity of the individual deposits. It demands a disciplined approach and adheres to rigorous rules while maintaining flexibility for adaptation to widely varying geologic conditions. By defining the limits that guide and control manual, computer-assisted conventional, and geostatistical reserve estimates, it exerts a strong geologic influence on the estimation process. A combination of ore zoning and geostatistical analysis of molybdenum deposits produces a significantly more accurate, precise, and defendable geologic reserve estimate than other methods.

Jan 1, 1983