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By Stephen L. Bolivar, Susan H. Balog, Thomas A. Weaver

A data-classification scheme was developed to detect potential uranium mineralization in the Montrose l º x 2º quadrangle, Colorado. The methodology developed is a rapid and efficient method of resource evaluation on a reconnaissance scale. The necessary techniques were developed and refined to digitize, integrate, and register various large geological, geochemical, and geophysical data sets for the Montrose quadrangle, Colorado, using a grid resolution of 1 km. All data sets for the Montrose quadrangle were registered to the Universal Trans- verse Mercator projection. The data sets include hydrogeochemical and stream sediment analyses for 23 elements, uranium-to-thorium ratios, airborne geo- physical survey data, the locations of 90 uranium occurrences, and a geologic map (scale 1:250 000). Geochemical samples were collected from 3965 locations in the 19 200 km2 quadrangle; aerial data were collected on flight lines flown with 3-5 km spacings. These data sets were smoothed by universal kriging and interpolated to a 179 x 119 rectangular grid (each grid block is 1 km2). A mylar transparency of the geologic map was prepared and digitized. All possible combinations of three, for all data sets, were examined for general geologic correlations by utilizing a color microfilm output. Subsets of data were further examined for selected test areas. A classification scheme for uranium mineralization, based on selected test areas in the Cochetopa uranium district, is presented. Areas favorable for uranium mineralization, based on this scheme, were identified and are discussed.

Jan 1, 1982

By D Hodson

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

Jan 1, 2006

It is recognised by the current JORC (1999) code that resource classification involves the interaction of numerous qualitative and quantitative criteria such as data quality, geological continuity and grade continuity. No prescribed criteria and rules will work for all situations or even between different ore types within the same deposit. Also these criteria and rules are sometimes applied without a clear understanding of their appropriateness, accuracy or correct implementation. For these reasons case studies are useful to evaluate and compare criteria commonly used to assist in resource classification. In this paper blasthole data from a selected area of Joffre Member hosted ore of the Brockman Iron Formation at the Mt Whaleback orebody are used as the basis of a case study for the above-mentioned purposes. Iron grade, in per cent, is interpolated from a blasthole dataset into a block model using ordinary kriging. Samples are then removed from this blasthole dataset to produce a random sample grid, a semi-random sample grid and a regular sample grid. Using nearest neighbour, inverse distance squared, ordinary kriging and sequential gaussian simulation, block iron grades are estimated using these three blasthole data subsets as inputs. This provides four groups of estimates with the ordinary kriging estimate based on the complete blasthole dataset being considered to represent the true estimate of iron grades. Also generated during this process are estimates of the error for each block. These error estimates range from the simple, such as drill spacing, through to more advanced methodologies such as kriging efficiency and simulation. These estimates of grade and grade estimation error are then compared to the true estimate using graphs and statistics. In order of increasing accuracy the block grade estimation and simulation methods were nearest neighbour, inverse distance weighting, ordinary kriging and finally conditional simulation. The simulation in some instances doubled the accuracy of individual block grade estimates when compared to nearest neighbour and inverse distance weighting estimates. It was found that many methodologies for estimating the error of individual blocks performed equally well with only methods such as average drill hole spacing and classification by search ellipse pass number performing poorly. An approach on how to convert the abovementioned error estimates of individual blocks into a meaningful JORC classification is also discussed. Although advanced non-linear resource estimates are applicable, most iron ore mines are still using relatively straightforward methods. The use of blasthole data and some simple linear interpolation methods and simple linear based error estimates makes this study repeatable for most iron ore sites and their resource geologists. This style of investigation is recommended as a useful approach for the Competent Person to apply to their deposit and thus better select, implement and understand the criteria used for resource classification and provide more consistency and confidence in the resource classification process.

Jan 1, 2002

By Adam H. Zimmerman

Introduction Noranda, like similar businesses, is suffering the pain of previously unheard of currency relationships, a cost structure built in better days, and conditions of gross oversupply possible in almost any commodity. Indeed, it does seem like the worst of all possible worlds is out there before us. To understand a Canadian natural resource company, you must know how the country is organized. So far as natural resources are concerned, Canada is not Canada. Canada is 10 provinces and each own the resources situated therein. Thus, the conditions of extraction, exploitation, and operation are all set by the province, while the conditions of trade and currency are set by the Federal government. This means that what may be the rule in Newfoundland may not be the rule in Manitoba or British Columbia. The second thing is that the Canadian currency has been a satellite of the US dollar for a long time. This means that we hold the unenviable and unjustified position of being the country with the second strongest currency in the world. What this has meant to us is what it has meant to an American operator. Since 1980, a pound of copper fetches 214% more for a Chilean than it does for us and a pound of zinc 115% more for a Belgian. From an American point of view, Canada is favored because its dollar is valued at 25% to 30% less than the U.S. However, because of industrial indiscretions in years past, Canada has a locked in labor cost disadvantage that is very hard to cope with. Canada has a unique situation with its labor unions. Many of the unions are, or have been, internationals and therefore gained undue strength in early days. Canada has a third political party of socialist persuasion. It is entirely funded by dues from laor union members. Thus, we have a politicized workforce. And finally, we have a public service that has the right to strike. This had made the public service unions by far the strongest now in Canada. What this means to the mining industry is that there is somebody out there blazing the trail. The unrelenting power of these public service unions probably creates a climate more conducive to excessive wage settlements in industry than would otherwise be the case. Study, Work, and Pray So what do we do when times get tough? In simple terms, we study a lot, we work harder, and we pray a great deal. We study a lot in terms of learning hitherto unknown strengths and weaknesses of our products, processes, and operations. We work hard in the sense that we do everything possible to improve our productivity. And we pray a lot because, so far, anything else we have done has not been enough. Some years ago, Noranda recognized that its principal base and precious metal operations were diminishing. To provide for the future, we should branch out into other resource type operations. These might be countercyclical and also perhaps a little more permanent. For this reason, Noranda entered the potash, aluminum, and forest products businesses. This, of course, was a 'brilliant' strategy that was much applauded in its early days. We built an excellent potash mine, the smallest inte-

Jan 6, 1985

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

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

Jul 16, 2014

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

Aug 1, 2013

By S Doyle

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Macraes gold mine in Otago, New Zealand, is developed along the central portion of the Hyde-Macraes Shear Zone (HMSZ), which dips gently to the NE, and is traceable over 30 km of strike, before disappearing under tertiary cover. Mineralisation is most intensely developed along the hanging wall shear, which defines the upper limit of the shear zone, although significant packages of quartz vein arrays and mineralised shears occur sporadically beneath the hanging wall shear.The Macraes gold mine is now in its 25th year of operation, well beyond the projected mine life at the time of commissioning in 1990, and currently contains over triple the measured and indicated resource inventory that was defined at start up. The extended mine life and resource growth has been driven by exploration and resource development success, efficient low-cost mining and processing, improving gold price, as well as an ethos of continuous improvement.The emphasis of Oceanagold’s exploration and resource development has shifted over time; from hanging-wall-focused mapping, soil sampling and step-out drilling, through exploitation of previously drilled stockwork mineralisation, to the pursuit of blind, higher-grade underground targets.Mineralisation within the HMSZ remains open at depth, and the regional potential has not been fully tested. Given the relatively low-grade of gold mineralisation at Macraes, the consideration of tungsten as a supplementary co-product provides an exciting opportunity.CITATION:Moore, J and Doyle, S, 2015. Resource definition in the world-class Macraes gold mine, New Zealand, in Proceedings PACRIM 2015 Congress, pp 557–564 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By Ronald E. Pike

"PREFACEAt the CIM Annual General Meeting in Quebec City, R.E. Pike of The Toronto-Dominion Bank described how the Canadian banking industry worked with the minerals industry to assemble the large capital requirements for resource projects in Canada and overseas. He developed a profile of the mining industry and Canadian banking, both being important sectors of the Canadian economy and global in context. He also outlined the banking and financing partnership that existed in the past. In looking to the future and challenge that lies ahead f or each industry, Mr. Pike questioned whether the financing practices of the 1970s will be acceptable over the next decade. In that regard, he highlighted the risks that impact on each industry and illustrated how that financing partnership might evolve in response to those forces. The folio wing is a synopsis of his paper.IntroductionThe Canadian mining and metals industry is prominent in the domestic economy and respected internationally. Any measure of its performance illustrates that status-percentage of GNP, employment, exports, capital investment, size relative to other producing nations, etc.Energy, Mines and Resources Canada has forecast that the non-fuel minerals industry will grow in real terms by an average annual rate of 3.0% over the period 1981 to 1991. Using the GNP as reference, that growth in non-fuel mineral production will represent 7.7% of GNP. In translating that growth to capital expenditure, the EMR Canada estimates the aggregate amount at $43.8 billion ('79 dollars) or approximately 12% of total business investment in Canada during the 10-year period.About half of the $43.8 billion will be devoted to the ferrous sector-$8.4 billion in iron ore mining and $12.4 billion in the steel industry. Capital investment in nonferrous s projects is estimated at $13.3 billion, and it is projected at $6.7 billion for industrial minerals. The residual $3.0 .billion is exploration spending."

Jan 1, 1982

Developing and operating mines in developing countries is never dull, but continuously challenging in terms of geology and terrain, geography and location, culture and land tenure, environmental and social issues, fiscal regimes and in some cases political risk. In addition, the rapidly changing nature of the communities with little understanding of the nature of mining at the community level requires us to continually manage issues affecting project development and mine operations with greater sensitivity. In frontier regions, people skills can become more essential than technical skills, particularly in dealing with indigenous people. Hence, managing a mining project requires a huge relationship effort.Effective communication with communities of different cultural background and proactive management of issues influencing community aspirations and desires requires not only new skills but also creativity with new concepts on how to deal with social issues under a different cultural context. The involvement of government agencies and NGOs is an important ingredient to creating understanding and collaborative approaches to common social issues. Maintaining stakeholder relationships pays in the long-run and is a useful exercise in getting information feedback from the wider community.

Jan 1, 1997

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