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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 D. S. F. Silva

A survey of 120 recent NI 43-101 technical reports was conducted to evaluate the current state of practice regarding resource classification techniques. The most common classification techniques are based on search neighbourhoods (50% of recent reports), drill-hole spacing (30% of recent reports), and/or kriging variance (6% of recent reports). Two new techniques are proposed. The first is based on kriging variance and involves removing one or more drill-holes with the highest weights while performing kriging and using the resultant kriging variance for classification. This technique has the advantages of variance-based techniques and reduces artifacts. The second technique is based on conditional simulation and uses a moving window approach for classification at the desired selective mining unit resolution based on larger production volume criteria. This technique has the advantage of accounting for heteroscedasticity, which is a common characteristic in mineral deposits, and also reduces artifacts since a production volume scale is considered for the actual classification. The drill-hole spacing, search neighborhood, kriging variance, and simulation-based techniques are described and compared for 2D and 3D examples with regular and irregular drilling patterns to highlight the advantages and disadvantages of each method.

Jan 1, 2014

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

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

Mineral Resource Throughput Management is based on the extraction of the maximum potential value from an ore reserve with the emphasis to generate maximum ROI and ROR (return on reserve). A steel producing company in India implemented MRTM to significantly improve their ROI and ROR. The value chain of this company consists of their own iron ore and coal mines, ore washing plants, sinter plants, steel plants, and sales and marketing division. The target for the mines was to produce at a stable and predictable rate and at specific quality requirements. These requirements were set to improve productivity and ROI of the steel plant. The implementation constituted the alignment of the reserve potential, total production chain, human resources and management culture at the mines with the requirements of the steel plant. Many typical mining practices were challenged and changed. Production targets regarding lump vs. fines ratio, consistent product tons, quality targets such as Fe, Al content and moist, and standard deviation on the quality targets were not achieved. A reverse distribution model with release mechanisms to satisfy the demand were developed and implemented at the mines. A stable and predictable flow of mine product with quality standards well within the required standard deviation targets were achieved. The contribution from the mines to significantly improve the Net Profit, ROI and ROR of the company were reached.

Jan 1, 2007

By James R. Dunn

The mineral industry" has made and will continue to make important contributions to the growth of our economy. However, the industry is presently under continuous and increasingly severe attacks by organizations and individuals interested in the preservation of our environment. Yet neither the public interest value of preservation nor the public interest value of our mineral industry is known. In the absence of such values, judgments about best land use where minerals are involved are nearly always made on emotional grounds. An example of the sort of problem that has been created is in the New York Metropolitan Area. Because of institutionally-created shortages stemming largely from zoning decisions and building over deposits, the effective cost of fine aggregate delivered at dockside at Manhattan rose from $2. 65/cubic yard in July, 1969, to $4.10/cubic yard in May, 1970, this in spite of approximately ;l0,000 years of reserves on Long Island. The cost of fine aggregate for New York City alone has "Increased over $S million annually within one year, with the cost increase for the Tri-State Metropolitan Area (coastal Connecticut, New Jersey, and New York)" exceeding $10 million annually. The ab0ve situation has created a cost increase which is clearly the result of non-conservation of a mineral resource. That is, in readily measurable values, it Is costing the public about $10 million per year because good conservation practices were ignored-a public-interest loss. Admittedly, this is not the whole story because the public is simultaneously obtaining other values from the land surface that would otherwise have had to be dedicated, temporarily to be sure, to mineral recovery-a public-interest gain. However, the point is that we do not know where the balance lies-the net public interest value; it may lie one way for deposits zoned out of existence by a growing suburb, another for areas designed as permanent greenbelts, and still another for areas under new highways

Jan 1, 1971

By K. Nielsen

The paper presents a brief overview of the mineral industry in Norway, followed by a description of the mineral policy and relevant legislation including the roles of the Norwegian Directorate of Mining and Geological Survey of Norway in this context. The discussion then proceeds to describe the land use planning framework on a national, regional and local level, the interaction between land use planning and the Directorate of Mining and the Geological Survey respectively, and how this impacts on the mineral industry and the exploitation of mineral resources. Some recent Norwegian examples of land use planning conflicts are also presented.

Jan 1, 2005

By A L. Withy

This paper is intended as a review from a planner's viewpoint, of the relationship between town and country planning, a primarily government activity, and the minerals industry, which, with the exception of coal, is a largely private enterprise activity. The paper first considers the nature of the system of planning in New Zealand, and the objectives sought by planners in relation to minerals are discussed. The reasons why these objectives are not generally being achieved are investigated. A final section deals with the gap between objectives and achievement, and suggests a number of ways in which this gap may be narrowed.

Jan 1, 1976

By J. Douglas Causey

In 1984, at the request of the Bureau of Land Management, the Bureau of Mines studied 9,600 acres of the 12,350-acre Antelope Creek Wilderness Study Area (MT-065-266) in order to evaluate its mineral resources. Within this report, these 9,600 acres are referred to as the study area. The Antelope Creek Wilderness Study Area, Phillips County, MT, adjoins the north end of the Charles M. Russell Wildlife Refuge. Considered part of the Missouri River Breaks, the area straddles the edge of a thrust fault zone that has deformed the Mesozoic strata in the west half of the area. Shale, siltstone, and sandstone of Cretaceous Age are exposed in the area. Coal beds averaging 3.0 ft thick occur in the Judith River Formation. About 0.20 million short tons of coal were mined from the Judith River Formation adjacent to the west boundary of the area; no production is known in the study area.

Jan 1, 1986

By Howard A. Meyerhoff

AS a source of mineral wealth, the larger islands of the West Indies have never had an enviable reputation. The Spaniards took possession of them in the sixteenth century hopeful that they would yield gold; but it was not long before they knew the rather rigid limitations of Antillean gold production and were seeking-and finding ---richer deposits of the precious metals in Mexico and on the west coast of South America. Although a great deal of wealth changed hands in the West Indian islands in subsequent years, the fact may be laid to the abundance of pirates and privateers and not to the richness of local ore bodies.

Jan 1, 1941

By Francis E. Federspiel

Silver and gold are the principal metals in the study area; they occur in quartz veins or silicified portions of shear zones. In some deposits, lead, antimony, zinc, and molybdenum are associated with gold and silver. A uranium-bearing buried stream channel lies near the southern boundary. Since 1850, more than 300 lode claims and relocations have been recorded mainly in the southeast corner of the study area (fig. 1). Complete mine production records are not available; however Clark (1977, p. 28) reported less than $300,000 of gold and silver were produced, mainly from the Exchequer, IXL, and Pennsylvania Mines. Other mines in the area probably yielded are before 1900, but early records are not available.

Jan 1, 1981

By Michael S. Miller

In 1984, at the request of Bureau of Land Management, the Bureau of Mines studied 8,500 acres of the 20,250-acre Seven Blackfoot Wilderness Study Area (WSA) consisting of all 3,950 acres of MT-024-657A and 4,550 acres of the 4,850 acre MT-024-657B in order to evaluate the mineral resources. Within this report these 8,500 acres are referred to as the study area. Located about 30 miles northwest of Jordan, MT, the study area is underlain by outcrops of Quaternary alluvium and Cretaceous to Paleocene sandstones, shales, clays, and coal. No mines or prospects were found in the study area. Except for some current interest in petroleum and natural gas, there has been no mineral exploration activity in the study area. The study area contains subeconomic clay, placer gold, and coal. Land within the study area is leased or under lease application for oil and gas.

Jan 1, 1986

By Ronald T. Mayerle

A mineral survey of portions of two contiguous WSAs (Wilderness Study Areas) along the South Fork Owyhee River in southwestern Idaho and north-central Nevada was done by the U.S. Bureau of dines in 1984. The portions of the WSAs, known as study areas, have a combined area of 47,610 acres. The Idaho study area consists of 42,430 acres of the 42,510-acre South Fork Owyhee River WSA (ID-16-53). The Nevada study area consists of 5,180 acres of the 7,840-acre South Fork Owyhee River WSA (NV-010-103A). The Idaho study area is within the Boise District of the Bureau of Land Management, and the Nevada study area is within the Elko District. In the Nevada study area, no claims or hard rock mineral occurrences are known.

Jan 1, 1986

By G. Tiess, S. Mujiyanto

Indonesia is a fast growing democratic developing country comprising more than 17,000 islands, founding member of ASEAN and a member of the G-20 major economies. It is one of the most highly mineralised countries in the world, the mining sector playing a pivotal role in the country's economy. In 2001, the Decentralization Law No. 22/1999 came into force and caused a transfer of authority and responsibility from central to regional and local administrative governments. The new Mining Law of 2009 substituted its 40 year old predecessor, but lacked detailed regulations for its implementation. These were only issued in 2010, which lead to a period of great uncertainty for investors in the mining industry. The new legislation intends to foster domestic economic development, which may be interpreted as protectionist policy. For the development of a sustainable mineral resources policy, further endeavours will have to be made.

Jan 1, 2011

Australia is the world's leading producer and exporter of mineral sands. Despite increased production from some other countries in recent years, Australia maintained its No.1 position in 1988 among world producers of mineral sands concentrates. Production of the titanium minerals -- ruffle, ilmenite and leucoxene, as well as synthetic ruffle -- by the seven companies currently comprising the Australian industry increased in 1988 in response to continuing strong demand for feedstock by the pigment industry. Production of co-product zircon remained at the 1987 level, reflecting declining zircon grades. Exports of mineral sands concentrates increased in 1988; export earnings exceeded $300million. Prices for mineral sands concentrates are now at a historical high and, assuming that the world economy remains strong, real prices should continue to trend upwards in the short term. Exploration in the Eneabba-Cooljarloo region and the Scott River area, both in WA, the Murray Basin, Vic, and the central Queensland coast area, has identified substantial resources of heavy mineral sands. These discoveries have reversed the trend of the early 1980s of falling resources of mineral sands. In 1988, BMR estimated that economic demonstrated resources (EDR) of ilmenite, rutile, zircon and monazite combined was about 72.8 million tonnes. However, a substantial portion of the resources on the east coast are frozen as a result of environmental considerations. The proportion of mineral sands concentrates processed in Australia increased with the commissioning of two new synthetic rutile plants; Australia is now the world's leading producer of synthetic rutile (total capacity 272000 tonnes), most of it for export. Australia's two TiO2 pigment producers have both increased capacity, lifting national capacity by some 70p ercent to over 120000 tonnes/yr. As part of the expansion one producer converted from the sulphate to the chloride process. Other new pigment plants are being proposed for the future.

Jan 1, 1989

By R Kjar

Globally, it is anticipated that the mineral sands industry will enter a period of short supply. Demand for both titanium dioxide and zircon is forecast to continue increasing, with new projects needed to come on-stream to fill the supply gap. Victoria is well placed under this scenario as a source due to the high quality of its mineral assemblage, its excellent resource grade and the globally significant size of its mineral sands resources.Australia’s mineral sands rich Murray Basin remains under-developed, especially at its extensive Victorian margins. Development to date has not progressed adequately for the reasons of technology difficulty, history of competition with other jurisdictions and the absence of a platform that requires development as a consideration for security of tenure. Victoria’s mineral sands potential is not just about the Murray Basin, in addition, there have been discoveries in the Gippsland Basin and prospective sites in the Gippsland Basin remain under-explored. Key problems included the lack of available ground for potential developers and the intellectual property of solutions to technological problems associated with the fine grained mineral deposits belonging to a previous developer (with patents now expired).As such, the timing is right to re-visit the potential of the Murray Basin as a site for long-term development with high returns based on current and predicted prices.In order to understand why Victoria’s earth resources in general, and mineral sands in particular, remain under-explored and undeveloped, the Department of Primary Industries initiated an internal review of its role in encouraging and supporting investment in the earth resources sector.As a result, the Victorian Government has committed to taking action to encourage effective ground turnover and acknowledges that a new focus on engagement with industry is needed to bring new investment to the State. The revision of the Mineral Resources (Sustainable Development) Act 1990 provides an opportunity for the government to better align its legislative processes with industry project lifecycles and facilitate access to valuable resources that currently remain undeveloped.Victoria has a track record in assisting projects reach development stage. Iluka currently has two operations in the State in addition to its mineral separation plant that is capable of processing HMC from its South Australian operations. Iluka is expected to ramp up its Murray Basin Stage 2 operations with the WRP mine scheduled to come on line in early 2012. Meanwhile, Astron is actively seeking partners for its Donald Mineral Sands project. The project is becoming increasingly attractive given the recent price hike in zircon; Astron has access to an estimated five to 6 Mt of zircon in its Donald WIM 250 deposit.Given its substantial and valuable mineral sands endowments, the State of Victoria should sensibly be the centre of future investment in project development. However, as previously mentioned this is currently not the case. The Government is therefore committed to implementing new measures that protect security of tenure but ensure that genuine companies can access endowments where they have a clear intent to work those resources.

Oct 5, 2011

This paper examines some of the important aspects of mineral taxation policies and practices, with reference to the mining tax regimes of selected Pacific Rim countries (see Tables 1 and 2). The following subjects are addressed:what is æmineral taxationÆ?, basis for mineral taxation, types of mineral taxes, objectives of the mineral taxation regime, best practices, and mineral royalties. Many countries, in some cases with the encouragement and assistance of international funding agencies, are actively assessing the international competitiveness of their mining tax regimes with a view to attracting investment. However, these countries recognise that the mining tax regime is not the only consideration that is taken into account by prospective investors. The countryÆs geological prospectivity, physical infrastructure, labour force, political risk, and regulatory system are also important factors in the investment decision making process. Although it is probably true that an attractive mining tax regime will not necessarily attract mineral investment, there is a real possibility that an unattractive regime can drive away investment. For example, Hugo Dummett, general manager for discovery at BHP, hinted recently that BHP could cease exploration in Russia in the absence of positive tax changes. Dummett is reported as saying that if taxes æend up being as onerous as they are now, we really have to rethink why we are hereÆ (Mining Journal, London, November 27, 1998).

Jan 1, 1999

By B. Berhe, R. D. Lawrence, J. Hinzer

"The fortunes of mining companies and their implied value are tied to cycles - both economic and commodity – within which they operate. Hence the determination of appropriate future metal prices is one of the most critical factors faced by mineral valuators especially for advanced projects. Price, and hence revenue, is usually the most sensitive input to the valuation model. Empirical studies of past forecasts show that the success rate for commodity price forecasting is very poor. This paper explores various approaches and comments on their strengths and weaknesses. We conclude that careful evaluation of long-term metal prices is a key element and is hardly a luxury that can be left to simple averages or rules of thumb. INTRODUCTION Discounted Cash Flow (""DCF"") analysis, is well suited for the valuation of advanced mineral development assets, for which there are identified mineral resources and some form of economic assessment (Pre-Feasibility or Feasibility Study). The DCF method is also the most commonly used method for determining value for such assets. It provides a means of relating the magnitude of expected future cash flows from profits (or losses) to the magnitude of the initial cash flow (investment) needed for capital expenditures to purchase or to develop an asset for commercial production. The method proves useful in making investment decisions as it allows for the quantification of the Net Present Value (“NPV”), as well as the Internal Rate of Return (IRR) and Payback Period on initial investment capital. Valuation by its very nature is a forward-looking exercise. The DCF method attempts to estimate the NPV of expected future cash flows, by selecting factors that will likely affect future cash flow based on informed analysis. One of the most critical and sensitive factors is the determination of appropriate future commodity prices. “The variables that have the greatest impact on a DCF evaluation are the reserves, the metal prices, and the discount rate.”1 The determination of future commodity prices for valuation purpose or during M&A negotiations is a hotly contested issue. There are a number of analysts, institutions and specialized commercial data suppliers that provide both short and long-term commodities price forecasts. Also, the use of an aggregated mean for all available forecasts, or consensus forecasted prices for valuation purposes is not uncommon. The methods used in making forecasts for each forecaster may vary and in many cases may not be publically disclosed. Nonetheless, the aggregated mean of all forecasted commodity prices of reputed institutions is usually taken to “represent the market’s view of likely future commodity prices.”"

Jan 1, 2016