Search Documents

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 Glen Smith

Nautilus Minerals is the world leader in exploration and development of deep ocean seafloor massive sulphide (SMS) resources. The company is currently focused on generating its resource pipeline in the Western Pacific and its first development project for recovery of high-grade copper, gold and silver mineralisation from its Solwara 1 site in the Bismarck Sea, Papua New Guinea. The Solwara 1 site is located at a water depth of 1,600 ? 1,800 meters. Over 150 SMS seafloor surface samples have been collected from chimney structures during dives made by remote operated vehicles (ROVs). In order to obtain an understanding of the sub-surface mineralisation, Nautilus carried out 4 drilling programs between 2006 and 2010 which allowed the calculation of a Canadian NI43-101 compliant resource estimate. The initial 2006 campaign was based on conventional offshore surface driven drill equipment. In conjunction with the subsea remote technology industry, Nautilus subsequently developed an ROV operated seafloor drill system with improved drill core recovery and efficiency. This technology was developed further with a 2010 - 2011 drill program to increase the available geological knowledge at Solwara 1 and adjacent prospects. his paper will provide an overview of Nautilus? SMS drilling requirements and recap the evolution of drilling technology and operations undertaken at Solwara 1 from 2006 to 2011. The paper will also discuss the potential of further developments in drilling techniques and equipment to increase or improve drilling depth, efficiency and data quality.

Jan 1, 2011

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 Andrew J. Regis

Resource figures for bentonite clays are generally based on stratigraphic, sedimentary geologic data and drilling and sampling. Estimates of bentonite resources and/or reserves commonly found in the literature report on bentonite occurrences in specific localities or areas but none on any documented comprehensive estimates of bentonite resources. From 1974 thru 1977 the Bureau of Land Management conducted extensive studies of the resources of commercial grade bentonite in the three state region. These investigations consisted of: 1. Stratigraphic and geologic sampling with supplemental drilling data, followed by geostatistical analysis. 2. Data compiled from a systematic search of county and state records on mining locations, leases and acreage filed for bentonite. Estimates of resources of commercial grade bentonite using industry parameters were calculated from these data sources. It is concluded that there exists from 1.5 to 2.4 billion tons of in-place bentonite in Wyoming, Montana and South Dakota. Assuming a 5 percent annual growth rate for the industry, this would indicate a life of 62 to 73 years.

Jan 1, 1979

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

Geostatistical analysis, resource estimation and three-dimensional modelling of the gold grade distribution was undertaken using exploration drillhole data taken from the Mt Leyshon gold mine. The main aims of the project were to provide an independent estimate of the primary gold resource and to improve the estimate by better understanding the statistical distribution of gold and the establishment of more robust variograms. These criteria have been achieved by the removal of low grade sub-populations, increased sample size and access to data from the most recent drilling program. The outcome of this statistical study has led to a lowering of the sill and nugget variance of the variograms used. Distinct geometric anisotropy was identified in all the resource estimation zones and was used to model gold grade distribution.Two independent resource estimates were established from the primary gold resource, one based on a geostatistical estimator (kriging) and the other on a traditional estimator (inverse distance weighting). Both methods were compared with a contemporary kriged estimate by Mt Leyshon Gold Mines Ltd.

Jan 1, 1993

The process of resource estimation of large precious metal deposits is illustrated by reference to major deposits now being mined or developed by Placer.The estimation procedure commences with building an appropriate model of the mineralization and proceeds through steps of data validation and geostatistical studies. It is important that the geologists most familiar with a deposit be involved with all stages of the estimate, and also prepare a manual estimate used to validate the kriged resource.Resource estimates are major exercises taking many man-months of work. The most time consuming part of this is usually construction of an appropriate three dimensional geological model. The data base for the resource calculations must be complete and checked for accuracy. The most appropriate estimation method must be selected.

Jan 1, 1990

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 C Grobler, M Recklies, G Jiang, I Taylor, M Morgan, G MacDonald, L Smith

The resource estimation of lateritic deposits, such as Aurukun, presents specific issues related to the lateral changes in thickness and elevation of the various horizontal layers (or zones) within the deposit where the x and y dimensions are orders of magnitude greater than the z dimension. The objective was to develop a three-dimensional (3D) block model that retained the vertical and lateral variation inherent in deposits of this type to allow full optimisation of the production plan without prior selection of an economic portion (enriched bauxite layers) of the profile at the resource estimation stage. The Aurukun bauxite deposit is held by Chalco Australia Pty Ltd (Chalco) and forms part of the world-class Weipa bauxite province, Cape York Peninsula, Queensland, Australia. The bauxite is predominantly pisolitic with an upper boehmite-rich zone and lower gibbsite-rich zone. The bauxite consists of both in situ and reworked domains, is overlain by a thin soil horizon and has kaolinite clay as a transitional base. A portable infrared mineral analyser (PIMA) was utilised on site, in addition to elemental assay, on each drill sample to determine the mineralogy, in particular levels of boehmite, gibbsite, kaolinite and reactive silica. As part of the scope of work, a field program was undertaken using large diameter Boart Longyear sonic drilling to acquire detailed density measurements across the deposit to allow compliance with Joint Ore Reserves Committee (JORC) reporting requirements. Interpretation of the stratigraphy was conducted on a hole by hole basis with definition of the zone layering based on stratigraphy, geochemistry and mineralogy. The zone boundaries were then modelled as 3D surfaces and used to constrain a block model. The block model estimation used the ordinary kriging method, with the estimation done in unfolded space and then refolded, therefore maintaining the zones irrespective of thickness or orientation. The unfolding process converts the real-world positions for both blocks and informing samples to a scaled position relative to the roof and floor of each zone. Analysis of the data and variography were also undertaken in unfolded space. The x and y dimensions are unchanged, but the z dimension is a relative position. The effect of the unfolding and limits on number of samples per hole is to æpushÆ the informing sample search sideways but within the stratification, rather than vertically. This honours the strong vertical zonation within the bauxite profile. The JORC Code requires that the stated resource must have æreasonable prospects for economic extractionÆ. This is a qualitative rather than quantitative definition. A number of selection criteria to define a resource roof and floor were developed in consultation with the project engineers and owners to meet these criteria. The vertical selection of material to include in the resource highlights the variation in the development (and destruction) of the bauxite profile from area to area within the deposit.

Jan 1, 2009

By Michel Dagbert, Mohammed Harfi

"Abstract - The Draa Sfar polymetallic deposit, at about 16 km NW of Marrakech in Morocco, is a massive sulfide zone at the contact between an underlying volcanic and an overlying clastics sequence. The mineralized body is a flat lens with schistosity and "boudinage," tilted to the west and with a strong dip to the east. The lens extends over a strike length of about 2 km and from surface to a depth of about 1 km, with thickness varying from 1 m to almost 30 m. It has been intersected by about one hundred surface drill holes and, in its south part, by about thirty underground fan holes from two exploration levels at depths of 300 m and 400 m. On these two levels, the massive sulfide zone has been channel sampled over a cumulative length of about 0.7 km. Results from drill and channel samples are used to estimate the resources of the orebody according to several methods: sections, polygons around intercepts on a longitudinal plan, grids on the same longitudinal plan with various distance weighting methods including kriging and, finally, a 3D grid with the same range of interpolators. A comparison of the various estimates delineates the important factors in deriving resources for this type of deposit. Those factors are mostly geological and related to the interpretation of the geometry of the two limiting surfaces of the zone. For the 3D gridding, the authors have devised a new and original method that constrains the interpolation of blocks from samples to a geometry of limiting surfaces. The resulting model shows internal grade variations that parallel fluctuations of zone thickness and orientation without having to re-orientate the search window in each block. Résumé - Le gisement polymétallique de Draa Sfar, situé à environ 16 km au NW de Marrakech est un horizon de sulfure massif au contact d’une formation volcano-sédimentaire de base et d’une formation détritique sur-jacente. Le corps minéralisé se présente sous forme d’une méga-lentille aplatie, schistosée, boudinée et déversée vers l’ouest avec un fort pendage vers l’est s’étendant sur une longueur de 2 km et une profondeur de près de 1 km avec une épaisseur variant de moins d’un mètre à près de 30 m. Il a été reconnu par plus d’une centaine de sondages de surface et, dans sa partie sud, par une trentaine de trous souterrains en éventail à partir de deux niveaux à des profondeurs respectives de 300 m et 400 m. Sur ces mêmes niveaux, des traçages ont permis de rainurer le minerai sur une longueur cumulée de 0.7 km. Les données de sondage et de rainurage ont servi à estimer les ressources du gisement selon plusieurs méthodes : sections, polygones sur longitudinale, grille sur longitudinale avec différentes pondérations en fonction des distances incluant le krigeage et enfin grille tridimensionnelle avec le même éventail de pondérateurs. La comparaison des estimés obtenus permet de mettre en évidence les facteurs importants dans l’estimation des ressources de ce type de gisement. Ces facteurs sont essentiellement géologiques et relatifs à l’interprétation de la géométrie des limites des corps minéralisés. Pour l’estimation sur grille tridimensionnelle, on a mis au point une technique originale qui calque l’interpolation des blocs à partir des échantillons sur cette géométrie des surfaces de contact. Le modèle résultant montre des variations internes de teneurs qui épousent les fluctuations d’épaisseur et d’orientation de la zone sans qu’il soit nécessaire de ré-orienter les fenêtres de recherche dans chaque bloc."

Jan 1, 2002

By Binns MJ

Gold/silver orebodies of the Golden Plateau deposit, Cracow, Central Queensland, are currently being exploited by the Cracow Mining Venture. A geostatistical block model has been prepared to assist with long term mine planning. The Golden Plateau orebody, of inferred epithermal origin, is a multiply brecciated, silicified fault complex containing irregular, tabular and pipe- like oreshoots. Historically the lode has been stoped and open cut over a strike length of 750 metres at widths of up to 15 metres and to a depth of 250 metres. The Golden Plateau mine produced 1.55 million tonnes of ore at an average grade of 12 g/t Au and 13.5 g/t Ag over a 42 year period. In the preparation of the reserve model much reliance has been placed on recent diamond and reverse circulation drilling (71 holes in total). However a significant volume of data has been derived from historical level assays and underground diamond drilling. Over 3,000 level assays and 50 underground drill holes contributed to the database. Similar lognormal populations were observed for 1 metre composite grades from each major drilling campaign once corrections were made for core loss. Cumulative frequency plots revealed only one outlier which was cut to the population line. The population statistics from the historical level assays showed a significant difference from those derived from the drill hole composites. Level assay populations were cut to local drill hole populations before incorporation into the ore reserve model. The resulting data has yielded interpretable variograms, the parameters of which have been applied to the preparation of a kriged block model of the deposit.

Jan 1, 1987

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 Peter E. Halbach, Andreas Jahn

"Co-rich ferromanganese crust deposits exist on slopes, summits and platforms of seamounts and guyots throughout the global oceans, where deep-sea currents have kept the seafloor structures more or less free of sediment for millions of years. They form by direct precipitation from cold seawater under more or less oxic conditions and consist of thin layers (2 up to 25 cm thick) covering hard substrate rocks in water depths of 800 to 5000m (Halbach and Marbler, 2009; Hein et al., 2000). Besides Mn these crusts contain interesting concentrations of minor elements (Co, Ni, Ti and Cu) and trace elements (Mo, W, Te, Ga, Pt and REEs), thus they represent significant metal deposits and promise potentially valuable additions to the world’s metal resources.The prospects for mining of this marine type of metal deposits largely depend on the grades and the scale of the potential ore resources. However, only a few percent of existing seamounts and guyots have been mapped and sampled in detail, most of them in the Pacific Ocean. Therefore, a model to estimate the geological resources based on the global seamount catalogue of Wessel (2001; revised: Wessel et al., 2009) and the empirical parameters which control the metal composition and distribution was developed."

Jan 1, 2017

"Abstract - An estimation of resources of structurally complex gold lodes and stockworks represents a challenging task for geoscientists due to the complex geometry of the lodes and discontinuous grade. In the present case study, the resource of a gold stockwork has been estimated by uniform conditioning after the lode has been subdivided into geostatistically defined domains using the indicator probability model. The indicator probability model represents a powerful tool for structural interpretation of the mineralization and can be applied when traditional 3D volume constraining methods (wireframing) have failed to produce a unique, non-subjective model. For comparison, the resources of the same zone have been estimated without domaining. Results of the study clearly show that estimates obtained without domaining of the mineralization can yield a substantial error due to excessive smoothing of the grade.Application of uniform conditioning for modelling the grade distribution has a significant advantage over linear methods (e.g., ordinary kriging). Uniform conditioning enables estimation of local recoverable resources at different selective mining unit sizes that can be substantially smaller than the drilling density without creation of biases or over smoothed local values."

Jan 1, 2002

The development of the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves is a significan step towards informing the financial community and the public about the future profitability and risks of investing in resource companies. The Code is also important from the accountants' point of view because it provides them with a well-defined bash for assigning costs or attributing value to the assets of resource companies and hence improving their financial reports. Although reporting to the public is ultimately the responsibility of management, accountants, like geologists, are frequently required to provide information for inclusion in these reports. Jr the last ten years, there has been a considerable refinement in the reporting of mineral resources which can be attributed mainly tc the progress made towards developing the Code. It seems tha the classification and terminology that the geologists have developed are widely used in the annual reports. However, little progress has been made by accountants in improving the financia information. The purpose of this paper is twofold: (a) to outline briefl) some of the major problems in accounting and reporting fo; mining companies and; (b) to examine the potential contribution of the Code in solving those problems.

Jan 1, 1990

By M Stewart

In January 1994, Macraes Mining Company started a new phase of exploration to find additional resources along strike and down dip of identified resources for a mill that was being expanded from 2.1 Mtpa to 3.2 Mtpa. At 30th June 1997 a total of 456,784 m in 3,627 holes had been drilled at the Macraes Gold Project with approximately 325,000 m in 2,100 holes drilled in the latest phase of exploration. This necessitated the construction of resource estimates on a more frequent basis and resulted in the formation of a resource modelling team, assisted by Snowden of Perth. Since April 1995, 14 separate resource estimates have been completed. At Macraes, resource estimates are built using Medsystem/Minesight software. The geological interpretation is converted into a set of three dimensional wireframed solid models which are used to code drillhole composites and blocks in a block model. The interpolation method of indicator kriging is used to interpolate grade into the blocks. Classification into measured, indicated and inferred categories is on the basis of geological confidence and drill spacing. The resource estimate is reconciled against grade control polygonal estimates on a bench by bench basis and on a monthly basis. Grade control estimates are reconciled monthly to mill production. For the period 30 June 1995 to 30 June 1997, the resource estimates have under predicted tonnes by 4% and grade by 1% to under predict ounces by 5% at a 0.5g/t cut off. At ROM sulphide cutoff grade, the models have over predicted tonnes by 5%, under predicted grade by 5% to over predict ounces by 1%.

Jan 1, 1997

By J N. Moncrieff

The resource estimation process for the underground Mount Isa Copper Mine has undergone significant change. Block models are now created using a commercial software package as opposed to the in-house software that was previously used. With mineralisation occurring over a strike length of more than 4 km, Mineral Resources for all categories totalled 190 Mt at 2.7 per cent Cu at 31 December 2002. Estimation is by ordinary kriging with two separate models generated to cover the X41 and Enterprise orebodies respectively. The underlying Upper Basement Contact and the silica-dolomite alteration envelope are both used as hard boundaries to constrain the modelling. From a validated block model, grade shells are generated at the appropriate cut-off grade for a given area. The grade shells are depleted for mined voids and subdivided into 30 metre strike length blocks. Application of a SMU criteria and crown and pillar constraints results in failed blocks being culled from the resource inventory. Mineral Resource blocks are further subdivided into resource categories (Measured, Indicated, Inferred) by the Competent Person on the basis of geological confidence, taking account of geological and grade continuity, drillhole spacing and structural complexity (JORC, 1999). A geostatistical æconfidenceÆ category is incorporated into the block model as an additional tool for the categorisation process. The shapes are assessed in concert with a mining engineer to determine whether a reasonable expectation of mining potential exists and if not they are removed from the resource. The final categorised blocks constitute the Mineral Resource inventory and form the basis for conversion to Ore Reserves. The resultant Mineral Resources and Ore Reserves are reported on an æinclusive ofÆ basis.

Jan 1, 2003