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By S N CARRAS

Ore reserve estimation is a procedure involving data collection, data storage and judgement and assumptions about geology mining and metallurgy. Calculations are based on these assumptions and an economic analysis on projected cash flows is carried out. Ore reserve estimation must therefore be subjective and will always depend on the extent to which the assumptions used in arriving at the estimate are correct. This paper is an attempt to summarise the many aspects that can contribute to ore reserve problems and to offer some suggestions on how to minimise these problems. For further details on specific concepts readers are referred to the detailed descriptions in the referenced papers.

Jan 1, 1992

By Mark Laffoon

Gold Fields Operating Co.-Chimney Creek has conducted numerous ore reserve modeling studies In order to optimize the estimates of the gold grades and tonnage distributions. Improved models continue to be produced for the major pits which Increase confidence levels required by Gold Fields management and provide the basis for more accurate long and intermediate term mine planning. Various kriging and non-kriging estimation techniques are used at Gold Fields -Chimney Creek Mine. This paper reviews the modeling histories and, current procedures used to construct these models with particular emphasis on the North Pit deposit.

Jan 1, 1991

By Neil D. Donnell, O&apos

Ore reserve estimation at the Syncrude Canada Ltd. open-pit oil sands mine in Northern Alberta has evolved since the project's inception. Early techniques followed a conventional petroleum reservoir analysis format, with relatively widely-spaced drill holes and semiquantitative grade data. Experience has developed a more standard mining approach, including classification of geological materials by both lithology and sedimentary origin, timely and multi-purpose drill holes, precise analytical data, empirical recovery factors, a computerized geological data base, and an ore body block model. Future efforts will involve enhancement of existing techniques, use of geostatistical algorithms, quantification of confidence limits, and improved control of the ore model by geological parameters.

Jan 1, 1985

By Neil Schofield

"The estimation of recoverable ore reserves for feasibility in precious metal deposits such as Pine Creek must account not only f or the extreme variability of the ore grade but also for the complexity of the geology. Compatible models f or both must be adopted. Further, very selective mining demands reserve estimates be based on small selection units whose individual grades cannot be estimated reliably from the exploration drilling data.Multigaussian kriging is one method based on a multivariate normal model for estimating recoverable reserves under such conditions. In this paper, a non-mathematical description of the multigaussian model is presented together with its application to the Pine Creek Gold Deposit. The results, when compared to the first year of production, are encouraging for the model but not without surprises.Together, Part 1 and Part 2 of this study combine a detailed and geologically conditioned variogram analysis with an appropriate estimation method for a highly variable low-grade gold deposit. This and other studies of gold deposits familiar to the author show convincingly both that while the appropriate geostatistical skills and techniques are necessary to tackle the question of reserves, equally important but often discounted is the need for an appropriate and compatible geological model. IntroductionThe Pine Creek gold mineralization is associated with saddle reefs, and quartz and quartz- sulphide veining within the Enterprise Anti cline. The anticlinal structure is complex and, prior to mining, the mineralization was considered to be mainly strata controlled. Grades vary up to 160 grams in l .5rn core samples with coefficients of variation in excess of three.The estimation of the recoverable reserves for such a depo sit must account for both the geological complexity and the extreme variability of the gold grade.Part 1 of this work presented the geological model for the deposit and summary statistics 0 f the gold data. A detailed structural and variogram analysis considered both gold grades and the normal score (or gaussian transform) of these gold grades for different composite sizes."

Jan 1, 1988

By D. E. Ranta, George F. Weaton

Estimating the Iron Ore reserves of Minnesota are directly related to both the geology of the deposit and the Scandinavian heritage of its people. The flat lying deposits, when properly prospected, make estimating easy and accurate across wide areas of the Mesabi Range. It also makes taxation simple on the unmined reserves. The reserves are their heritage and all the people should benefit, not just the owners. Heritage also dictates that newly discovered ores were there before discovery, hence, subject to the omitted property tax and liable for six years back taxes.

Jan 1, 1992

By G. F. Weaton

1.1 The purpose of this paper is to show the way by which estimates are made of the tonnage and grade of iron ore and taconite reserves of Minnesota. 1.2 The procedures include those of estimating the open pit reserves of: (a) Natural iron ore, and (b) Taconite 1.3 The methods of estimation which will be discussed are primarily based on the information from exploring iron ore deposits. They consider the geology of the deposit as well as the contained mineral of potential value. 2.0 Some geologic, engineering, and economic principles. 2.1 Ore 2.11 "In the broad economic sense, and from a legal standpoint as well, ore is mineralized rock, which under appropriate conditions of time, space, technology, economics, and politics, can be mined, processed, and made to yield a saleable metal , or other mineral products at a profit."(Parks, 1957) Stated differently, metallic ore is rock material from which presently known methods of beneficiation, a merchantable concentrate, suitable for use in the manufacture of metals at a profit, can be produced. Crude ores as low as 0.38% metal, as in the case of copper and even lower in the case of the precious metals.

Jan 1, 1985

By Jean Michel Marino, Jean-Pierre Slama

"The computer methods used by the French Commissariat a l'Energie Atomique, which are applicable to any type of ore deposits, are:(i) Ore reserve estimation. The data are either the core analyses or gamma leggings. To determine the spatial distribution of the ore, three different methods of interpolation are used. Two of these are based on the least-squares theory and the third one is an application of the regionalized variable theory. The interpretations of the orebody by the geologists are introduced in the computer program as often as possible.(ii) Optimal open pit design. From the spatial distribution of ore, the three-dimensional outlines of the optimal pit are determined by a geometrical algorithm which allows different slopes varying with the azimuth.Finally, the optimization of annual successive plans arc discussed."

Jan 1, 2014

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

By H. K. Taylor

Ore reserves are inadequately defined. Geological reconnaissance and pre-feasibility mining work generate a broad range of valid tonnage estimates, many published for the benefit of various interests, who may view all figures as reserves. This work reviews the regular estimation of tonnages, grades and relevant factors for single deposits. A consistent framework of definition is suggested which, by conforming to the known structures of feasibility studies and long-range plans, avoids the pitfalls of over-categorisation and of unrealistic promises. Applications are based on North American experience but are intended for general use

Sep 1, 1991

By J. S. Wakeman

INTRODUCTION The primary purpose of comminution circuits in the mineral industry is to reduce an ore to a particle size that will permit separation of the valuable minerals from its gangue constituents. Wide variations in the mineral content and physical characteristics can and do occur throughout a given mineral deposit From the standpoint of their effects on the comminution characteristics of an orebody, these variations may not be identified by the normal sampling and analysis procedures utilized to delimit an orebody and to characterize its grade distribution. The proper design of a comminution circuit for a mineral deposit is very important to the success of that enterprise. It is also an expensive unit process both from the standpoint of capital and operating costs. It is, therefore, essential that any sampling program be designed to identify the variations that may occur that will affect this circuit. Because of the variety of comminution systems that are available, it is also essential that the sampling and subsequent evaluation program be sufficiently comprehensive to identify potentially inappropriate systems or flowsheets. It would be impossible to describe in a single chapter the techniques and approaches that should be utilized for sampling every type of orebody. Each orebody is unique and requires a sampling and testing program designed to its specific requirements for exploration, characterization and circuit design. The following is a general discussion of the guidelines to be used and considerations to be made in establishing such a program. SAMPLE SELECTION When sampling an ore deposit for the purposes of equipment and flowsheet selection for comminution, it is important that the sample composites for grind testing be chosen on the basis of how they will affect the comminution circuit rather than just how they might affect the subsequent metallurgical operations. For example, grindability, classification and liberation size characteristics are more important to the comminution circuit than ore grade. Mineral deposits may contain a multiplicity of ore types that can vary extensively in the dissemination of minerals and optimum liberation size requirements; and may also vary as much as 100% in ore hardness. The accumulation of samples for grind characterization should be done in such a way as to allow the identification of this variation. A proper mineralogical evaluation of the samples obtained to characterize an ore deposit can be a great aid in identifying the individual ore types within the deposit

Jan 1, 1982

By William C. Peters

The frustration encountered by exploration crews in connection with land acquisition could be graphed to show a correlation with the natural law that everything tends to become more so. Figure I shows a rather common, situation. The combinations of ingredients are almost limitless and the resulting brew is often poisonous to an exploration man. A single step, that of taking a series of deep soil samples is often delayed until some sense can be made from "floating" unpatented claims which are obscure in orientation as well as position, placer claims overlapping lode claims, location posts with empty Prince Albert cans, and claims with no apparent assessment work for ten years. Add to this some patented claims with¬out monuments, a state or federal withdrawal area which may or may not invalidate pre-existing claims, a loosely defined tunnel site, and some ranchers who understandably resent the separation of surface rights from mineral rights. The picture is familiar to exploration men. One approach to such problems is to ignore them until someone voices an objection -- but then an even more chaotic situation is likely to develop. Another practice is to stake new claims to cover all ground that is "open" at first glance and then find out if there are conflicts so that the new claims can be adjusted accordingly.

Jan 1, 1970

By J E. Everett

A block model of the orebody is used to plan a mine. The first requirement is to identify ore to be extracted, discarding waste, so as to meet target grade, generally in multiple analytes. Commonly, cut-off values are set for each analyte, so as to distinguish ore from waste. It will be shown that, if more than one analyte is important, this procedure is wasteful of ore and a composite cut-off function is preferable.A second requirement is to sequence the ore extraction so that the variability in ore grade is controlled: failure to do so will result either in low-quality ore being marketed, or excessive re-handling being required to blend the ore to reduce the grade variability.A third requirement is that the extraction sequence should be such as to control the amount of equipment movement required, enhancing the equipment productivity.The overall objective, to optimise the Net Present Value (NPV) of the mined ore, is simply stated but complex in realisation, since so many factors, such as target grade, grade variability, equipment choice, equipment movement, and downstream blending all have alternatives which can be traded off against each other, and all of which contribute to the costs and benefits making up the total NPV.There exist commercial packages for ore selection and mine planning. However, they are often of a ‘black box’ nature, and users are sometimes not fully aware of the criteria being applied. In particular, the treatment of quality as a multidimensional vector may be problematic. The purpose of this paper is to discuss some of the issues involved and to suggest an alternative set of approaches, which should complement existing commercial treatments.The discussion will be illustrated specifically by reference to the mining of iron ore, but the issues are relevant to a wide variety of mining situations

Sep 5, 2011

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

By Harry Wolf

The chemistry of the element uranium enables industry to employ either an acid or alkaline carbonate leach solution for most uranium ores. Either method my be used for conventional, in-situ, or heap leaching. Uranium recovery in the leaching process depends both on the solubility of the uranium minerals and, on the access of the leach reagent to them. The uranium leaching rate is proportional to the liberated mineral surface area and the chemical reactions involved in the dissolution step. The dissolution of U(VI) and the oxidation of u(IV) to U(VI) are the basic chemical reactions in the leaching process. The active surface area is a function of the effective porosity and the particle size of the ore (1). Ore pieces, with a high porosity and high permeability, may provide a large active surface area even in coarser fractions. This type of ore might be suitable for heap or in-situ leaching techniques. Nonporous and impervious ores are usually more amenable to conventional milling where the active mineral surface is exposed by grinding the ore down to the liberation size of the mineral.

Jan 1, 1981

By Michael Brittan

The Delkor Linear Screen represents an important screening innovation in the minerals industry. Applications geared to the enhancement of gold processing efficiency through coarse screening are presented. Recent developments in the use of the Linear Screen as a fine screening classification device in mill circuits are also discussed.

Jan 1, 1998