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By G J. A Dewar

The Australian Corporations Law generally requires Independent Expert Reports to be presented in support of capital raising or in defence of mergers and takeovers. The introduction of the VALMIN Code in 1995 (and its recent revision issued as the VALMIN Code, 1998) made Assessment and Valuation Reports in these circumstances much more comprehensible than before because of its key requirements for transparency and materiality. By forcing the Independent Valuer to provide an explanation of the reasoning behind the estimation of a particular resource asset, VALMIN allows the reader to clearly see any error or illogicality in the valuation methodology used and to seriously question or even reject the resulting value. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Independent resource asset Valuers are the essential link between mineral explorers/miners on the one hand and brokers/analysts/fund managers/investors on the other. The minerals and financial industries both expect them to not use inappropriate or invalid valuation methods and illogical steps within these methods. This paper examines some of the less sensible ways in which some of the main techniques that Valuers commonly use to assess the fair market value of mineral properties have been applied in recent instances. The authors hope to discourage the adoption or perpetration of the æWhat-number-did-you-have-in-mind?' approach. It is MINVALÆs view that as many methods as possible should be used in any resource asset valuation. If any of the resulting estimates are in approximate agreement (particularly if they were derived using the less subjective of the available methods), ie if they cluster, they are probably more persuasive as being the Preferred Value of the asset than outlier values within the Valuation Range.

Jan 1, 1999

By Willard C. Lacy

A mining operation begins with prospecting and exploration-stages with long periods of investment and high risk of failure. However, success in exploration ultimately determines survival of the mining industry. Prospecting and exploration may discover evidence of a mineral occurrence and outline its size and character, but ore deposits that support mining are "made" through the collective efforts of project geologists, geophysicists, geochemists, metallurgists, engineers, chemists, lawyers, and even politicians (Joralemon, 1975). Some deposits may go through multiple cycles of rejection and recommendation, discovery and development, decline and abandonment, rediscovery and development, etc., as economic, technological, or political conditions change or geologic understanding is improved. Peters (1987, p. 233) graphically illustrates the normal life cycle of a mine and the position of exploration in the cycle (Fig. 4.0.1). During the past fifty years, mineral exploration has evolved from comparing evidence of mineralization of prospects with that of known deposits to a more quantitative science employing many facets of geochemistry, geophysics, multispectral sensing from space, computer data storage, analysis, modeling, and most importantly, a better understanding of ore genesis. This modem approach to exploration began in the late 1940s and continues to develop. Exploration efforts peaked in the 1960s with emphasis upon the search for porphyry copper deposits, Mississippi Valley lead-zinc deposits, and volcanogenic massive sulfide copper-lead-zinc deposits. It peaked again in the middle and late 1980s with emphasis upon micron-size disseminated gold and epithermal and stratiform precious metal deposits.

Jan 1, 2008

By C. E. Larson

Man's use of 'glass predates recorded history. Although early man had no knowledge of how to form glass, artifacts have been found near naturally occurring glass formations where molten rock had been rapidly cooled. In areas where volcanic activity is evident, primitive people fortunate enough to have lived in that area used the naturally formed glass to make arrow heads, knife blades, tools and ornaments. These glass artifacts have been found all over the world. In fact in todays modern society there are recorded cases of aboriginal tribesmen in Australia fabricating arrowheads from glass bottles. 2. A Brief History of Glass The first evidence of man made glass were beads made around 2500 BC by the Egyptians. The Mesopotamians also made glass beads at about the same time.

Jan 1, 1986

By E. C. Watkins

The fiber glass industry is an industry that. hopefully is still in its infancy and far from a mature business. Fiber glass, as will be discussed in this paper, deals with continuous strand glass as used in the textile laminate and reinforced plastics industries. More specifically, we are speaking of glass used for printed circuit boards, tapes, paper, cloth, pipes, tanks, boats, recreational equipment, roofing shingles, and automotive applications. Compared to the flat, container and decorative glass industries, we are very young. The early patents on fiber glass applications were issued in the 1930's. The type of glass most commonly used in the world and that discussed in this paper is designated as "E" glass. This is a boro-silicate type glass having specific chemical and electrical resistance and low thermal expansion properties.

Jan 1, 1986

By F. D. Huntley

Raw materials used by the Flat Glass Industry are known in the Industrial Minerals geology sector as Specialty Products. These pro- ducts must meet specification limits usually not the same for all glass manufacturers. Evolving new glass compositions will require mineral concentrates of consistent purity being produced within economic limits that will assure market viability of the resulting glass product. The amount of success the Flat Glass Industry will achieve by developing and maintaining domestic production centers will be determined by many economic factors which affect the costs of doing business. Technological developments by mineral processors must continue in order to achieve more efficient production of high quality glassmaking raw materials.

Jan 1, 1986

By W. L. Batt

MODERN war means mechanization, and mechanization means raw materials, especially minerals-and lots of them. Let me recall a few events of recent history-events that constitute mile- stones down the road to the war now blazing on three continents and threatening to spread still farther. In 1932, Japan took Manchuria, largely upon the excuse that she needed raw materials; in 1935, Italy invaded Ethiopia, largely upon the excuse that Mussolini's growing nation needed raw materials-in this case oil; from 1933 to 1935, Germany cried out for a greater share of the world's natural wealth, and since 1938 has invaded or occupied ten other countries, frequently upon the excuse that she needed-and had a right to-more raw materials.

Jan 1, 1940

By H. V. Fairbanks

The following processes were investigated using ultrasonic treatment in mineral recovery: (1) cleaning coal from coal slurry ponds, and (2) extracting precious metals from tailings and other sources. The treatment entails the production of a water slurry of the material containing the mineral which is made to flow over the vibrating surface of the ultrasonic treatment unit. The vibrations transmitted into the slurry break up particle agglomerates and also produce a scrubbing action on the surfaces of the particles. The treated mineral particles were found to have increased settling rates, better compaction, and more rapid water drainage.

Jan 1, 1990

By M. Vallée

Several reviews of mineral project performance in the past 35 years indicate a pattern of occasional, but recurrent, mining project failures due to shortcomings in geological information and estimation, mineral processing and metallurgical testing, feasibility study objectives and requirements, and project start-up methods. A commitment to quality assurance and continuous improvement methods and to obtaining “ENOUGH DATA, OF APPROPRIATE QUALITY” is essential. Recent international and Canadian proposals for mineral resource and ore reserve definitions have taken a nonprescriptive stance that will undermine the formulation of requirements, guidelines and industry standards for efficient deposit delineation and estimation, and for the determination of project feasibility. To help reduce problems, every feasibility study supporting a mine development and production decision should be based on objectives and methods adequate to reach completion targets similar to the bankers’, as a good business target for a profitable project. In a resource/reserve system, the use of reserve should be restricted to a project that meets required technical, economic and legal feasibility requirements for successful project implementation, and the definitions of these categories should provide explicit limits. Current shortcomings will limit the ability of the Qualified Person to provide “adequate professional practice,” fulfill his/her professional responsibilities to his employer or client and provide adequate information to the investing public. We must take advantage of present opportunities for Setting New Standards for the new Millennium.

Jan 1, 2000

By P T. Stoker, A Allman, D P. Carville

Classification of mineral resource estimates is one of the most important responsibilities of the Competent Person. In recent years, classification decisions have been driven more by the detailed block-by-block attributes generated by the now widely applied geostatistical estimation methods, and less by a general geological overview. This is increasingly resulting in æspotted dogÆ outputs, in which blocks of Inferred Resources or unclassified material separate blocks of Measured and/or Indicated Resources, or individual drill holes are surrounded by annuli of Measured and Indicated Resource blocks. Not only are such outputs potentially misleading, since they ignore fundamentals such as continuity of geology and mineralisation between drill holes and the imprecise nature of resource estimation, they can also cause substantial problems for engineers undertaking mine designs and estimating ore reserves, particularly for underground mines. Competent Persons for mineral resources must keep in mind the purpose of their work, and should use their experience and judgement to avoid or smooth out æspotted dogÆ classifications, providing a result commensurate with the level of geological and resource estimation confidence. For their part, ore reserve Competent Persons must understand the resource estimation and classification process, and should question resource classifications that are not consistent with the level of geological and resource estimation confidence.

Jan 1, 2006

By William A. Vogely, DeVerle P. Harris

INTRODUCTION Perspective The phrase "minerala resource appraisal" is widely and loosely used to refer to any quantitative description of a naturally occurring source of fuels, metals, or nonmetals. This leads to confusion when mineral resources are so conceived, for the term refers generically to information on stocks-mineral endowment, resources, reserves, and potential supply-that differ in ways that are important in economic analysis. Mineral resource and other stock measures- these are not flows, e.g., the supply of minerals-have precise technical meanings, which are presented in this paper. Quotation marks are used to separate the nontechnical use of mineral resource from the technical. The term appraisal also leads to some con- fusion because it too is loosely used. When an appraisal employs probability and statistical methods, the appropriate term is estimationb, not appraisal or assessment. This paper presents a conceptual framework or mineral resource information which renders technical, or well defined, relationships of mineral endowment to physical attributes of the earth's crust and earth processes, as distinct from economic values, and identifies estimation approaches that lead to different economic measures of stocks and flows. An important result of this approach is the distinction between the relevance of mineral resource information to economic and policy issues about potential sup- ply (stocks) and dynamic supply (flows across time). With regard to policy analysis, this paper recognizes that mineral resource information has a cost as well as an imputed value. Such a treatment implies that there is an optimum state of resource ignorance, or enlightenment, for a given policy issue and that the relevant economic issue is the selection of that information strategy and appraisal methodology that is indicated by the optimum state. Until the initiation of the OPEC oil embargo, the demand for information on mineral re- sources and potential supply was limited to occasional studies commissioned by Congress or the President of the United States. In these, mineral and energy resources remained loosely de- scribed. When quantitative estimates were supplied, they were not rigorously made, and the estimates and the methodology accordingly escaped close scrutiny. Usually, neither the geo- logical nor economic bases for estimation were carefully described or critically examined. The imposition by OPEC nations of the embargo on oil caused a sudden change in the public and scientific demands for specific 'resource" appraisals, especially of oil and of uranium. These

Jan 1, 1985

By Peter N. Gabby

In 1990, the Bureau of Mines conducted a mineral resource investigation of the 12.321 acre Black Warrior study area, one of several proposed additions to the Sawtooth Wilderness. No identified mineral resources were delineated. There were 123 lode and placer claims in or adjacent to the study area. There is a known hot spring adjacent to the study area, but presently no geothermal leases are pending. Lode mines in pr adjacent to the Black Warrior study area have produced 4,022 tons of ore from which 1,981 oz of gold and 811 oz of silver were recovered. None of the vines are currently active. During the field study 125 rock samples were taken. Significant gold assays and favorable geologic characteristics at seven properties indicate that gold occurrences and resources with byproduct metals may exist in the study area. Two other sites yielded anomalous gold assays; however, sage favorable geologic characteristics are lacking. Presently, identified gold resources are being delineated by drilling programs in the nearby Atlanta and Rocky Bar mining districts. These districts have geologic characteristics similar to the Black Warrior area. During the field study 22 placer samples were taken. In most places where an anomalous concentration of gold was found, the stream channels are too narrow for operations other than recreational suction dredges. However. One area is estimated to contain over 2 million yd3 of gold-bearing gravels.

Jan 1, 1992

By W.A. van der Westhuizen

Mineral resource management has become a well used phrase in the mining and minerals industry. Mineral resource managers are being appointed in many mining and mining-related organisations. Every mineral resource manager has his/her own ideas regarding what MRM means. There seems to be a tendency to define MRM close to home; geology would apply MRM principles to their environment and so will metallurgy, planning, mining, survey and every discipline and participant in the mining value chain. What do we do in the MRM environment and what do we aim to achieve? Surely we must have goals: what are they? Is value tracking MRM? What about best practices? Let us start at the beginning: what do we want to achieve in any mining operation? The minerals industry would like to make money, now and in the future. This calls for serious management inputs. The most important aspect is a holistic management approach regarding the total mining value chain. Process optimisation follows with application of Mineral Resource Throughput Management (MRTM) and Process Flow Management principles. Once flow processes have been established the necessary condition driven standards and measurements will be installed to ensure continuity in applicable processes.

Jan 1, 2012

A variety of algorithms and methods are being used by the mining industry today to map mineral resource for reserve estimation. The traditional methods including Polygonal, Sectional and Inverse Distance methods are relatively easy to understand and implement. They have served industry well for several decades and should continue to do so for the large bulk mineable deposits with very regular geometries with relatively small variation in grade.

Jan 1, 1992

By R C. A Minnitt

The Witwatersrand Supergroup is host to the world’s largest gold deposits. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are either known, estimated from specific geological evidence and knowledge, or interpreted from a well constrained and portrayed geological model. Establishing such a model is an integral part of the evaluation process in the Anglogold Ashanti (AGA) group, and is referred to as a Geoscience Business Model for the mining operations. The geological model established over the years has relied on detailed descriptions of the mineralisation, and understanding of the regional and local geology of the Witwatersrand sediments, in the West Wits and Free State goldfields. The processes of data collection in regard to underground stope and developing mapping, structural and sedimentological mapping, and the geological inputs to mine planning systems are described, together with aspects of drilling, sampling, grade control, and data management. Anglogold Ashanti’s Geoscience Department employs a complex and unique process to generate the Mineral Resource, including a 3D geological structure model of the orebodies which are usually highly faulted, and a robust mineralisation/facies model on which the decisions about domain boundaries are established. A Mineral Resource Inventory System (MRIS) has a dynamic graphic interface to the resource database that is used for compiling the resource statement. It is also used to determine the gold-called-for, as well as short and long-term planning. A unique estimation process using the extensive closely spaced stope face sampling database and the more widely spaced surface drilling information is used in combination in the Macro Co-Kriging estimation. The use of different support sizes in the C0-Kriging process is preceded by the equally unique ‘clusterisation’ and ‘acceptorisation’ procedures by which the data are quality controlled and assured prior to their use in the kriging process. The Mineral Resource and Ore Reserve estimates are classified according to the SAMREC code through a method that ensures that they are compliant, auditable, transparent and reconcilable with previous Mineral Resource and Ore Reserve statements.

Aug 22, 2011

By D. Orynbassar, N. Madani

This work addresses the problem of geostatistical simulation of cross-correlated variables by factorization approaches in the case when the sampling pattern is unequal. A solution is presented, based on a Co-Gibbs sampler algorithm, by which the missing values can be imputed. In this algorithm, a heterotopic simple cokriging approach is introduced to take into account the cross-dependency of the undersampled variable with the secondary variable that is more available over the entire region. A real gold deposit is employed to test the algorithm. The imputation results are compared with other Gibbs sampler techniques for which simple cokriging and simple kriging are used. The results show that heterotopic simple cokriging outperforms the other two techniques. The imputed values are then employed for the purpose of resource estimation by using principal component analysis (PCA) as a factorization technique, and the output compared with traditional factorization approaches where the heterotopic part of the data is removed. Comparison of the results of these two techniques shows that the latter leads to substantial losses of important information in the case of an unequal sampling pattern, while the former is capable of reproducing better recovery functions.

Aug 1, 2021

By C. Meyer, J. J. Eidel

Major gaps in understanding hydro- thermal systems remain after a century of studying fossil ore deposits and active geothermal areas. The periodically rejuvenated concept of "stacking" ore deposit types has never been verified by a continuous sample. Basal and marginal regions of both “fossil" and "active" hydrothermal systems normally lie beyond the limits of economic exploration, remaining inadequately exposed. Incomplete scientific under- standing of he vertical transitions clearly limits the efficacy of exploration programs for hydrothermal ores of all types. The Continental Scientific Drilling Committee's (CSDC) Panel on Mineral Resources has defined dedicated research objectives and add-on experiments to industry or government drill holes of opportunity.

Jan 1, 1988

By J. James Eidel

Geological interpretations generally require projections from direct observations at the earth's surface. Crustal projections include mineral deposits as well as the geochemistry of the crust and its fluids, structure and tectonics. Drilling offers opportunities for verification of the required projections, and is thus a required step in furthering crustal understanding. Like any new science, the direct observations that drilling provides commonly generate major surprises and stimulate totally new ideas. Drilling is costly. There are many critically important scientific problems with societal and potential economic benefits in mineral deposits which have not been drilled because the holes are difficult to justify as economically sound risks for private capital. Such holes, however, are highly justifiable research goals for government because of the significant new opportunity for ore deposit insight and exploration that they afford. The earth science community is prepared with excellent drilling projects for research in mineral deposits.

Jan 1, 1985

By Donald Bishko

Zoning is the legal means by which land use can be controlled. Although zoning laws have historically been quick to prevent quarrying, one is hard pressed to find zoning ordinances which specifically state that land should be used (or held in reserve) for quarrying and prevent other uses such as recreation, housing, etc. This situation is especially true when the mineral to be quarried has a low intrinsic value such as sand, gravel, and crushed stone. The chance of a gold mine surviving urban sprawl is probably considerably greater than that of a sand and gravel pit, even though it is possible that the dollar value of the sand and gravel' would exceed that of the gold mine. The research reported herein was concerned with two major topics: to delineate the real costs associated with the non-protection of our construction aggregate resources (growth minerals) and to develop a computer simulation model which would aid planners in making economically sound decisions. This paper describes the problems faced by the mineral aggregate industry and discusses the role of computer simulation in planning problems. It briefly describes a simulation model which has been developed and previously reported12 and discusses the results of a pilot study conducted on the Tri-City area (Albany, Schenectady, and Troy, New York). 3

Jan 1, 1970

Constraints on the mineral industry are best treated as issues that have to be understood and managed in partnership rather than in conflict with communities. TheZapopan development at Mt Todd in Australia and the Martha Hill development at Waihi in New Zealand are but two of many recent successful examples at the local level.   However, at the national level, the issues are more complex and more difficult to resolve because the most influential stakeholders are now the urban electorates and governments defer to their perceptions when making decisions and policy. In the developed countries, government policies for the development of mineral resources have been progressively eroded since the early 1970s. At the same time policies for the environment and for native land rights have generally been carried out in a way that has reduced access to minerals and increased the cost and risks for prospectors and developers (Hancock, 1995). Since the end of the Cold War, the lesser developed countries (LDCs) have introduced policies to attract investment in their mineral resources that remained undeveloped under previous unstable or hostile regimes. The increased attraction of these LDCs and the decreased attraction of the developed countries has caused many Australian and North American companies to outlay increasing proportions of their budgets and capital investment in the LDCs.   Significantly, LDC policies for environment protection do not discourage exploration and mine development, Surveys of the relative appeal of the LDCs and the traditional mining countries of the developed world, rate Chile, Argentina and Indonesia ahead of Australia and Canada in terms of risk, delays and ease of doing business (Australian Mining Monthly, February 1994).

Jan 1, 1995

Constraints on the mineral industry are best treated as issues that have to be understood and managed in partnership rather than in conflict with communities. The Zapopan development at Mt Todd in Australia and the Martha Hill development at Waihi in New Zealand are but two of many recent successful examples at the local level. However, at the national level, the issues are more complex and more difficult to resolve because the most influential stakeholders are now the urban electorates and governments defer to their perceptions when making decisions and policy.

Jan 1, 1995