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By M Bond, R R. Hargreaves, G W. Booth

There are numerous causes of speculative mineral resource and reserve inflation. Traditionally, these are linked to issues of data accuracy or misinterpretation, the use of overly optimistic estimation parameters or assumptions, an absence of independent expert verification, or the simple pressure to increase company value, covert or otherwise. Owing to its subjective nature, classification of resources and reserves remains an opaque process. Of necessity, Competent Persons rely on personal heuristic interpretations, ideally underpinned by appropriate estimation and classification experience across commodity and deposit types. Whereas independent verification of individual resource and reserve statements remains impractical, publicly available data can be interrogated for potential category inflation, particularly when viewed with exploration expenditure statistics included in annual company reports. Abrupt changes in category tonnages and market capitalisation without concomitant expenditure can aid in outlier detection. Consequently, a comparison of common exploration and resource reporting parameters offers a basis for risk assessing classification robustness, over time. In this introductory study, an analysis of globally listed companies was undertaken over a multi-year period, examining base and precious metal projects in both preproduction and operational asset classes. From these, a series of exploratory decision tree trigger points were generated against which target companies were anonymously identified and risk-ranked.

May 24, 2023

By J. M. Ortiz, J. P. Bertini

"In mineral resource and ore reserve estimation, several sources of information are generally available, such as diamond drillholes, reversed-circulation drillholes, and blastholes, and originate from one or more sampling campaigns and are analyzed by one or more laboratories. In such a situation, the grade measurements may not have the same precision and one should distinguish between hard and imprecise data.This work aims at studying the impact of data imprecision in resource/reserve evaluation through two case studies on simulated deposits: a porphyry copper deposit conditioned to real exploration and production data, and a gold deposit simulated without any conditioning data. Several geostatistical techniques are used to estimate the grades of selective mining units from exploration samples, including kriging, cokriging, lognormal and indicator kriging. Two types of imprecision are examined— measurements with multiplicative errors and measurements defined as intervals. The results are compared to the simulated grades of the selective mining units from a statistical and economic viewpoint.The study concludes that imprecise measurements should never be discarded because they help to improve the estimates, and that simple methods such as kriging are as efficient as more sophisticated ones for resource/reserve assessment. Finally, a few indications on how to diagnose and model the data imprecision are given."

Jan 1, 2005

By D Hodson

Current classification of resources is entirely a subjective task. The various international reporting codes (such as the JORC Code) provide Competent Persons and practitioners with little specific guidance on the standard of work and levels of uncertainty required to classify resources into Measured, Indicated and Inferred. Furthermore, little guidance is given in the conversion of Resources to Reserves and the potential impacts on classification of uncertainties in the modifying factors. Working back from the intended use of the resource estimates, and in understanding the tolerance for uncertainty by the end user of such estimates, insights into the objective and requirements of classification can be determined. Following this approach a comprehensive set of (quantitative where possible) guidelines have been determined that will ensure resources meet the desired objective of each classification, and are consistent and comparable. The guidelines look at what is required for each step in the resource estimation process in order to ensure the final resource estimate meets the desired level of confidence. This approach provides a transparent, comprehensive, justifiable and largely objective method of classification. The implication of introducing such a guideline or approach is to highlight areas of a resource estimation that do not meet the requirements (ie drive the uncertainty beyond the objective) and then focus in on the risks that may flow on from that particular uncertainty, to mitigate or attempt to control those risks.

Jan 1, 2006

By A Calderon, J Harris, M Shi, D Viswanathan, C Ribeiro Duthie, P A. Kirsch

Mineral resource development activities impact the health and well-being of many people, from workers, to families and surrounding communities. In the current environment of corporate social responsibility life-of-mine planning considers that mining activities should be conducted in the best environmentally, socially and economically acceptable way for the entire life of the mine (ie from exploration to decommissioning and closure). In this context, the health impacts of mining extend throughout the life of the community from worker injury and chronic exposure to communicable and non-communicable causes of illness, through to family and community health and well-being. At the inaugural Life-of-Mine conference in July 2012, the authors proposed the life-of-mine in the life-of-community (LOMLOC) matrix as a framework for understanding issues at the interface between resource extraction operations and the surrounding environment.This paper reviews and compares health activities extracted from social and environmental reports published by selected major mining companies with American operations in Canada, Colombia and Brazil. These corporate approaches to public health management are mapped to the LOMLOC matrix to identify and compare trends and behaviour in corporate health investments. This analysis of how companies approach and prioritise health issues in the context of different regions, cultures and environmental drivers will serve as a resource for minerals industry managers, civil society and regulators regarding current health management approaches in this sector.CITATION:Ribeiro Duthie, C, Calderon, A, Viswanathan, D, ?Shi, M, Harris, J and Kirsch, P A, ?2014. Resource company investments in health – a life-of-mine / life-of-community perspective across America, in Proceedings Life-of-Mine 2014 , pp 349–364 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

The extractive industry has the potential to impact the health and well-being of workers, families and surrounding communities. In the current environment of social performance, project planning considers that activities should be conducted in the best environmentally, socially and economically acceptable way across the development cycle (i.e. from exploration ? post-closure). In this context, health impacts of mining can be mapped and extend over the Life of the Community and can encompass worker injury and disease, exposure to communicable and non-communicable diseases, and health outcomes specific to family and community health and well-being outside the fence. To contribute to an emerging field focused on Health and the Extractive Industry, this paper reviews and compares health activities extracted from social and environmental reports published by selected major mining, oil and gas companies with operations in Australia and Canada. The objective of this review is to map corporate approaches to public health management across our previously developed Life-of-Mine within Life-of-Community (LOMLOC) framework in order to identify and compare trends and behaviour in corporate health investments across the project cycle, as well as identify the level of prevention targeted by this investment activity (i.e. primary, secondary and tertiary prevention of detrimental health impact). With the extractive industry facing ongoing rapid growth worldwide, this paper provides preliminary comparative information about corporate health spending by some companies in Australia and Canada. This information serves as a resource for minerals industry managers, civil society and regulators regarding current health management approaches in this sector.

Aug 1, 2013

By Guy T. Jr. McBride

World food production is not matching the exploding increase in world-population. Since arable land is limited, ways are being sought to increase yields by turning_ to fertilizer. Phosphate, an essential fertilizer ingredient, is undergoing a period of growth unparalleled in history. The United States is at once the world's largest producer of food and of phosphate rock. Both food and fertilizer output in the United States are being enlarged to meet the demands posed by the threatening world food crisis. New phosphate deposits are being developed in Florida and North Carolina to assure the United States' continued preeminence in this vital resource. Large fertilizer complexes are also being constructed with an eye to both domestic and foreign markets. The growth of the U. S. phosphate industry has been characterized by developing technology in the processing and distribution of phosphate raw materials. The trend from low analysis to high analysis materials accompanied by a change from a large number of small fertilizer plants oriented toward the marketplace to a fewer number of large plants located at the raw material source is illustrative. These changes in technology and distribution have also been important factors in the development of new mining areas in Florida, the Western States and North Carolina.

Jan 1, 1966

By D. M. Watson

Mineral discoveries and subsequent extraction have led to the establishment of many small communities, some major towns and a few cities . In Canada, such developments have essentially occurred without benefit of long-range regional or local planning. In the past, this was not a cause for concern. Now, however, rising expectations and reorientation of social values have placed increasing responsibility on government and industry to ensure the long-term viability of communities and regions. Such responsibility means large investments by government in infrastructure and by industry in extractive and processing plants. Uncertainty in the interpretation of ore reserve estimates becomes a critical factor. The traditional methods of reporting reserves - "proven", "probable" , "possible" - may be useful in individual mine production planning, but they are inadequate for planning industrial and public infrastructure, The need for a better information base is critical, with clear and precise definitions of what is being reported, but we are a long way from achieving it. The challenge is therefore to develop a closer professional relationship between government and industry and to tie mineral development to long-range regional strategies.

Jan 1, 1977

By Margaret Anne Stephenson

Today, in Australia, it is increasingly common to see agreements between Indigenous peoples and resource companies being achieved generally as Indigenous Land Use Agreements or agreements pursuant to the ?right to negotiation? process under the Native Title Act 1993 (Cth). Despite progress in this area, resource development on Indigenous lands is not without its challenges for both the resource proponents and the Indigenous parties. History demonstrates that resource development on Indigenous lands has produced struggles between the traditional owners of the land and the resource proponents. In Australia their relationship is generally defined by issues of access to land and assuring continued access to the land for the life of the project. In this context, divisions in Indigenous communities often emerge. The proposed resource project can have the effect of polarising members of an Indigenous community. It may be regarded by some traditional land owners as an advantageous opportunity for the community and by others as a hazard to country and culture. The process of agreement making has proved not only a test for the Indigenous community but also for the resource proponent. In this paper we undertake a contemporary case study of a proposed Australian resource related-development project on Indigenous lands. This project involved a multi-billion gas hub precinct proposed at James Price Point in the Kimberley region in Western Australia. The James Price Point proposal produced a litany of challenges for all parties. The traditional owners faced fundamental social and human rights issues, including a minority opposition to the project, the project's potential cultural heritage impact, the threat of compulsory acquisition of their native title interest by a State government due to an initial failure to settle an agreement, a fracture of their unsettled land claim and a minority rejection of the agreement ultimately reached. Additionally, the ?green? lobby also rejected the proposed gas hub on environmental grounds bringing the green lobby into direct conflict with both the traditional owners in favour of the project and the resource proponent. Ultimately, Woodside announced its decision not to proceed with the proposed gas precinct at James Price Point, in April 2013. In this paper we analyse the complexity of the James Price Point gas hub negotiations with the traditional owners which resulted in an Agreement that promised to deliver substantial benefits for the Indigenous communities. We question why such a favourable and beneficial agreement for the Indigenous community also produced the plethora of challenges and concerns and we consider how future negotiation processes could be better structured to avoid the difficulties that have confronted Indigenous land owners and resource proponents alike.

Aug 1, 2013

By P Holtham, K Duffy, W Valery, A Jankovic

In the face of increasing energy costs, limited water resources, more stringent legislation, and lower feed grades, the mining industry is searching for more sustainable technologies and practices. Metso Process Technology and Innovation (PTI) is undertaking a research project, ‘improving the resource and eco-efficiency of mining operations’, to help the industry meet these challenges. The project is investigating alternatives in mining and processing that reduce energy and water consumption, minimise emissions and waste, and maximise the value recovered from the deposit. The targets are to reduce energy usage by more than 30 per cent and greenhouse gas emissions by more than 50 per cent compared to current practice.Key areas of interest were identified across mining and processing operations. These were grouped into the following interrelated work areas for investigation: high intensity selective blasting, in-pit crushing and conveying, preconcentration, energy efficient comminution circuits and technologies, coarse particle flotation, and water recovery optimisation. Investigations have included reviews of industrial data, modelling, simulation, and laboratory and pilot scale trials. In some areas industrial scale trials will commence shortly. This paper discusses the investigations and key findings from the project so far; highlighting the possibilities for reducing energy consumption, water usage and carbon emissions. A particular mining process may incorporate any combination of the alternatives identified and requires tailored solutions based on a detailed understanding of the ore deposit, the process and local conditions. The focus is on improving resource efficiency; creating more value with less impact and consequently a better economic return from the available resource. Technologies exist today that can transform mining into a more efficient industry for tomorrow.CITATION:Duffy, K, Valery, W, Jankovic, A and Holtham, P, 2015. Resource efficient mining processes of tomorrow, in Proceedings Third International Future Mining Conference, pp 227–238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By P Jackson, J Rea, M D. Goodz

The Morning Star Gold Mine has operated over a 101-year period, producing gold from narrow quartz veins and sulfide stockworks hosted mainly within a dioritic-gabbroic dyke. The deposit has been developed over a vertical depth of 980 m with drilling extending the vertical depth to greater than 1200 m. Currently there is a total Inferred Resource of 4.6 million tonnes at a grade of 6 g/t for 910 000 ounces of contained gold resources, which comprises an underground project and a surface project. Significant variation exists between the grade of drill core intersections and that observed in face sampling and subsequent production reconciliation (250 - 650 per cent). Studies were carried out on ten major production reefs, where the grades of drill intercepts were compared with face samples collected during development and mining. The implications of this study have been used as justification to assign production or stope/development grades where applicable to resources that are direct extensions of the historical development headings. Grade assignment and its impact on sensitivity for gold resources are detailed and show a 40 per cent variation in the gold resource, depending upon whether a production or calculated stope grade is used in grade assignment for the major reef deposits. Recent diamond drilling has intersected approximately 40 new gold bearing quartz reefs and sulfide zones that contain all the key mineralogical and structural indicators, and traditional large variations in gold grades similar to the historical major production zones. The implications of grade factoring and grade assignment are the greatest challenges confronting the resource estimation team in defining grade for these new zones. Grade assignment is seen as a method of balancing known historical production observations with the irregular grade distribution inferred from drill core assay results. Ongoing mine development and bulk sampling works are planned to validate the grade assignment process. The first stage of this process is the trial mining of the newly discovered Maxwell Reef (MR). The stope drawpoints were completed in August 2008 and the MRS1 stope is scheduled for completion in September. The stope reconciliation results will be presented at the October 2008 conference.

Jan 1, 2008

By Luke Evans

What are Best Practices? What are Bad Practices? Who Uses Best Practices? Why Bother? Acceptability Guidelines Published Best Practices Published Bad Practices Additional Best Practices Some Best Practices for Low Grade Deposits Interpretation Guidelines Big Bear Gold Deposit Example Conclusions Questions

May 1, 2013

By T. Flitton, R. Peattie

"The extreme depths and consequent expense of drilling and sampling the gold-bearing reefs of the Witwatersrand Basin have resulted in limited data being available for estimation of grade ahead of the mining face. There is, however, a wealth of information from mined-out areas of these deposits. This estimation challenge resulted in the development of a unique method of Mineral Resource estimation.AngloGold Ashanti (AGA) utilizes a technique termed macro cokriging (MCK), which allows for the integration of the limited advanced borehole data with the large chip sample data-sets from the previously mined-out areas by adopting a Bayesian geostatistical approach. The MCK process, in short, is the estimation of mixed support size data together with the application of four-parameter distribution models.The gold value estimation for the Carbon Leader Reef (CLR) on the AGA TauTona Mine is used in this paper as a case study of the process and to demonstrate the effectiveness of this technique through production reconciliation. The current method has been proven over the last 20 years and is now an established part of the Mineral Resource evaluation process within AGA.IntroductionOwing to the extreme depths of the goldbearing reefs at the AngloGold Ashanti (AGA) Witwatersrand operations and the prohibitive expense and time involved in drilling boreholes to the required depth, only limited drilling and sampling data is available ahead of the mining face. Whereas traditional estimation techniques are interpolative, within the Witwatersrand the estimation is primarily extrapolative, with the majority of the data being sourced from the mined-out areas. This significant challenge to estimation resulted in the development of a unique method of Mineral Resource estimation and evaluation."

Jan 1, 2016

By S. Chatterjee, S. Bandopadhyay

A spatial modeling technique based on the Bayesian neural network (BNN) is proposed. Incorporation of the Bayesian method for posterior probability of the output parameter helps calculate the uncertainty associated with the estimate. Parameters of the BNN model were selected using a grid search algorithm. The expected value and the variance of block support were calculated by Markov chain Monte Carlo sampling of the posterior distribution at discretized points within the block. The BNN model was validated by applying it to the Walker Lake data set and comparing the results with ordinary kriging results. The comparison revealed that the proposed BNN method performs marginally better than ordinary kriging. The variance map is less smooth than with ordinary kriging, and the proportional effect is less in the BNN-based model than in the ordinary kriging model. The developed BNN model was applied to the Coho block of a placer gold deposit in Nome, AK. Results reveal that the BNN model is globally biased for the Coho block and underestimates the sample mean. The grade volume curve was developed by calculating the block mean and block variance after discretizing the block into a number of points and applying the BNN model to each discretized point.

Jan 1, 2011

By C Boyle

Brockman 2 mine is located in the Pilbara of Western Australia and is operated by Rio Tinto Iron Ore. Mineralisation is hosted by synclines where there is structural complexity to focus fluid flow. Mineralisation is hosted by the Brockman Iron Formation. Mining is on 10 m benches and blastholes spaced at 6 - 8 m apart are geologically logged, sampled by shovel cuts, and assayed using X-ray fluorescence for ten chemical variables. Blast blocks are digitised by mine geologists to assign destinations of material within blasts. Resource evaluation drilling is on a spacing of 50 m × 50 m across known mineralisation and consists of recent reverse circulation drilling and older open hole percussion drilling. Sampling of resource evaluation drilling is by rotary splitters or riffle splitters, and assaying is by X-ray fluorescence for ten chemical variables. Ordinary kriging of resource evaluation produces a long-term resource model. This study examines whether mine planning would be improved by using a blasthole estimate to extrapolate grades into deeper benches and merging the blasthole estimate with the long-term model made using resource evaluation drilling. The two estimates are merged into one model using an inverse weighting based on kriging variance. However, reconciliation results in a test bench show the original estimate made using resource evaluation drilling more closely matches mine geology block outs than does the merged model. This is due to a local trend of more high grade and higher iron grades of high grade in the area. The blasthole estimate of deeper benches must use extrapolation and it is diffi cult to take local trends into account. In contrast, the estimation using resource evaluation drilling is mainly interpolation and is better able to handle local trends.

Jul 11, 2011

By A E. Annels, G F. Johansen, B W. Cuffley

Nuggety gold-quartz reefs are characterised by localised, high-grades and in many cases coarse free-gold. Geometrical and grade complexities are often observed. The high-grade regions are generally erratic and have a low continuity; though may make the deposit economic. Viable grades are generally contained within discrete oreshoots, which are surrounded by barren/low-grade material. Drilling is an effective measure of geological continuity, however grade distribution can only be reliably obtained from underground development and bulk sampling. In general terms, only an inferred resource is likely to be estimated from surface drill data alone. Underground development, further drilling and probably bulk sampling will be required to delineate inferred and indicated resources. Closely spaced development with bulk sampling is likely to be the best way to determine a probable reserve. The resource evaluation process must driven by a clear geological model that should attempt to understand the controls to reef geometry and grade distribution. Geological interpretation has traditionally been undertaken in two-dimensions, though computer software is now being used to produce three-dimensional models. Grade interpolation has generally been undertaken using classical methods, typically weighted averages, zone of influence weighting and polygonal/sectional blocks. Tonnages can generally be calculated from diamond drill and development information with a reasonable degree of confidence. Grade is much more difficult to define with confidence because of its highly erratic and discontinuous nature. To account for variability it is recommended that a best estimate be reported within a grade range, as this more accurately reflects the uncertainties involved. Reporting should be undertaken within the framework of the JORC code, but should involve special consideration of grade reliability.

Jan 1, 2000

By Ian Selby

Resource management is a key factor in the operation of a successful marine aggregates business; it is integral to the development of sustainability, satisfying increasing commercial, quality, and environmental performance standards. Resource management is based on the combination of; (i) a thorough evaluation and understanding of the resources on the sea bed and (ii) a dredging plan targeted to permit the effective and efficient extraction of the resources whilst mitigating impacts and leaving the sea bed ready for recolonisation.

Jan 1, 2004

By W. G. Deeks

CANADIANS are world leaders in marketing metal and mineral products. Noranda Sales Corporation Ltd. is an international metal and mineral product marketing company operating from Toronto and London, England, where it operates a wholly owned sales subsidiary and is a 50% partner in Rudolf Wolff and Company Ltd., a charter member and the largest metal broker on the London Metal Exchange. Noranda Sales employs 97 people, of whom 52 are university trained and professionally competent in international resource product marketing. We market for 19 companies or divisions in the Noranda Group and 39 companies for whom we act as agent, consultant and purchaser of resource production. Our business in 1976 was 1.5 billion dollars carried out in 45 countries and covering 24 products and materials. Today, ownership of most of the mining industry in Canada has transferred back to Canadians, and this is said with the knowledge that a significant part of the Canadian industry has been Canadian owned and managed from its very early days. Noranda Mines Limited is such an example. It was born in 1922 as the result of a copper-gold showing at Noranda, Quebec, discovered by Ed Horne, a prospector, financed with a grubstake by a syndicate mainly composed of New York businessmen. Shortly after the discovery, when the shares of the company had risen, the syndicate was sold to Canadian interests and, since that time, Noranda has been dominantly Canadian owned and certainly Canadian managed. Today, over 90% of Noranda's shareholders are Canadian, who hold an equivalent percentage of the stock.

Jan 1, 1977

By C K. Boafo, J Visser

Obuasi Mine in Ghana, with more than 100 years of mining history, developed from a surface operation into a deep >2000 m underground gold mine. The challenge is to extract value from narrow veins left after extensive mining in the wider ore zones of the mine. Since the merger of AngloGold and Ashanti Goldfields in 2004 the mine strives to achieve optimum extraction through an integrated Mineral Resource management process from geological modelling, resource evaluation to mine design and scheduling. The shear hosted gold deposit displays complex secondary shears of variable thickness and continuity. There is an ongoing process of changes taking place in the way that geological modelling and resource estimation is done. Recent developments include the use of computerised systems that support the whole resource management chain from resource modelling to reserve optimisation. The change in thought and technology now allows for targeting narrow veins previously ignored in optimisation and mine design since moving into mechanised mining. The increased knowledge and confidence in the resource models now allows for flexibility in mine design, selection of mining method and scheduling and extraction of the reserves. The focus area for change is the way the orebody is evaluated and extraction designed. Since 2005 major changes were made to the process. This paper considers the historical approach of resource management. It looks at the individual process changes and qualifying the way ahead.

Jan 1, 2008

By E Haren, A Winchester

The CSA Mine has a long and varied history from initial discovery in 1871 through to the present. Lead-zinc mineralisation was mined historically near the surface. Today copper and silver are extracted from the deeper regions of the mine. The mine has passed through a number of owners over this time, each with a unique operating philosophy and understanding of the mineralisation. Cobar Management Pty Ltd re-opened the mine in 1999 and has undertaken extensive drilling programs to expand the resource and gain a better understanding of the mineralisation characteristics. Presently mineralisation has been located over a strike length of 1.2 km and to a depth of over 2.0 km with over 30 mineralised lenses from four identified ore systems. The refinement of geological and mineralisation models led to further discoveries and prompted a review and modification of resource modelling processes. Advanced statistical analyses prompted the implementation of ordinary kriging as a grade estimator. Improved stationarity from enhanced geological domaining has been supported by variography and kriging neighbourhood analysis studies. Resource models at CSA are now quantifiable in terms of mineralisation style and estimation reliability. The new techniques are assisting the definition of more mining fronts, which are creating new opportunities to increase mine output.

Jan 1, 2006

By Surendra K. Mishra

With increasing regulatory pressure from the environmental authorities, waste management has become a focal point of industrial operation. To offset the waste management costs, industry has made conscious effort to recover usable resources from the waste streams. This paper reviews the technical developments and current practices in processing of waste materials. Methods for recovering metallic, non-metallic and organic species from solid wastes and effluents generated by operating plants are discussed.

Jan 1, 1997