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By S Coward, J Vann, R Wolff, S Jackson, S Moayer, A Bye

Uncertainty about the future and orebody should significantly impact evaluation of mining projects. Scenario planning, widely used in other industries, for example in the petroleum industry, can provide organisations with an opportunity to explore the consequences of uncertainty on their future plans. By developing plausible scenarios, scenario planning assists decision makers by allowing them to make systematic and possibly effective decisions for the future. This paper reviews existing mine project evaluation in the context of a new framework called scenario-based project evaluation (SBPE) (Vann et al , 2012) that addresses many shortcomings of existing approaches. SBPE uses conditional simulations (CS) models as inputs which are evaluated against future alternative project pathways (æalternativesÆ). These alternatives are evaluated using multiple plausible images of the deposit (CS realisations) which capture realistic variability and as an ensemble, map uncertainty of various orebody attributes at fine scale. The alternatives can involve different mining, stockpiling, blending and processing strategies. The ultimate output is a (stochastic) set of cash flows for each alternative from which financial measures, such as NPV, can be derived. Alternatives can then be explored in the presence of against external scenarios such as changes in prices, costs, and taxation. The obvious problem with such data rich results is knowing which scenarios or group of scenarios are optimal.An innovative approach to robust stochastic optimisation (RSO) suited to the SBPE framework is presented here for the first time. This approach to RSO aims to deal with the large number of alternatives generated from SPBE. The goal of applying the RSO approach to SBPE is to identify robust strategic alternatives (project configurations) which have the flexibility to deal with variability and uncertainty of geological and processing inputs such as density, grade and process performance. By applying the proposed RSO method, it is possible to deal with uncertainty and identify the best project configuration in the face of a large number of envisaged scenarios. A case study is provided, in which we have tested the application of the proposed method and compared the result with conventional methods. An important conclusion from this research is that selecting the value of the penalty coefficients in the RSO approach proposed is (as is all optimisation) an exercise of trade-offs; a higher net present value (NPV) is generally associated with a higher risk and a lower risk is associated with a lower NPV. Indeed, this is a strong argument for considering the RSO approach outlined here over more conventional approaches.CITATION:Moayer, S, Vann, J, Coward, S, Jackson, S, Bye, A and Wolff, R, 2012. An innovative approach to robust optimisation for scenario-based mineral project evaluation, in Proceedings Project Evaluation 2012 , pp 141-148 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By G Nicholas, S Coward, J Vann, R Wolff, S Jackson, S Moayer, A Bye

"A new approach to mineral project evaluation is described called Scenario-Based Project Evaluation (SBPE). SBPE incorporates well established æscenario planningÆ and æscenario thinkingÆ approaches, which are used extensively in other industries,?most notably the?petroleum industry. While most scenario planning is qualitative and non-probabilistic, the approach described here includes both quantitative and qualitative aspects. SBPE is complementary to optimisation approaches and allows mining firms to build and operate projects that are more robust in the face of adverse changes as well as proactively respond and exploit the upside offered by a realistic assessment of variability. The approach has potential to improve project performance and decrease operational risk. It also has important applications for currently operating mines.Conventional evaluation of metalliferous mineral deposits uses estimates of metal grades and deleterious attributes in singular æorebody modelsÆ, usually 3D block models, which fail to capture two critical aspects that underpin the realised value of mining projects: the inherent uncertainty of the estimated attributes the spatial variability of attributes, at the scale of mining selection, which impact on downstream processing steps and fundamentally drive realised value. While singular models are appropriate for estimating block averages, conditional simulation (CS) models of the relevant attributes are needed to represent uncertainty and capture spatial variability. Any attributes that can be either built into CS models and/or modelled in the envisaged mining/processing steps, can be evaluated fully through to highly ægranularÆ (ie detailed and un-smoothed) cash flows. A complete view of SBPE relies on selected strategies being tested against plausible æscenariosÆ of factors external to the project and thus outside management control. æExternalitiesÆ captured in such scenarios include market prices, costs and taxes. Via SBPE, project managers may demonstrate that there is material value in preserving or purchasing options that provide future flexibility to respond to the changing externalities or changes in orebody performance. Such flexibility generally comes at a cost but is very difficult to value. It is argued that full value chain evaluation using SBPE can help to value these options for a mining company. A case study for a gold mine is presented.CITATION:Vann, J, Jackson, S, Bye, A, Coward, S, Moayer, S, Nicholas, G and Wolff, R, 2012. Scenario thinking - A powerful tool for strategic planning and evaluation of mining projects and operations, in Proceedings Project Evaluation 2012, pp 5-14 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By R Redden

"The Didipio Gold-Copper project in the Philippines has been a well-defined reasonably high gold grade porphyry for almost two decades. OceanaGold are now bringing the project into production in late 2012 and have recently reoptimised the project with the goal of combining the inherent high grades with higher through-put than previously proposed that will see strong initial metal production. The project was discovered and well defined by 1995, but has seen some obstacles to development, namely sovereign risk, capital cost and project funding. The project strengths over this time that have kept the flames alive are: strong grades large orebody with low stripping ratios a simple beneficiation process and a clean high-grade concentrate strong support from the Philippines government.The initial study in 1998 used Gold and Copper price assumptions of $325/oz and $0.95 lb respectively. Today reserves are based on $950 and $2.85. So, being a porphyry with a large reducing grade halo, the deposit now lends itself to extraction on a much larger scale than before, without any significant capital expenditure as a larger open pit now dominates the project.Didipio is a game changer for OceanaGold, so it has been important to learn from history and to capitalise on a strong initial metal production profile. The project sits in a reasonably remote mountainous area of Luzon which sees annual typhoons and numerous short duration high intensity rainfall events and two rivers flowing through the project area, so it has not been without some innovative technical solutions.CITATION:Redden, R, 2012. Didipio - Learning the lessons, adapting and getting ready for production, in Proceedings Project Evaluation 2012, pp 67-76 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By Brett P. Spigarelli

To meet the growing need for CO2 capture and storage technology, Michigan Technological University is researching CO2 capture and storage using alkali solutions1. Without implementing emission controls, world energy emissions will rise from 29.7 billion t in 2007 to 42.4 billion t in 2035. The first objective of the project was to determine the optimal amount of alkali in solution for CO2 absorption. This was accomplished using theoretical equilibrium calculations and experimental absorption data for alkali solutions of 1, 2, 3, 4 and 5 weight %. As the % alkali in solution increased, so, too, did the ionic strength of the solution. Theoretical calculations took into account the effect increasing ionic strength will have on the solubility of gaseous CO2. The calculations assumed negligible formation of H2CO3, constant temperature and constant pressure. In the experimental setup, a 16% CO2 /balance air gas mixture was bubbled through an Erlenmeyer flask filled with an alkali solution. The gas exiting the flask was fed to a gas analyzer to record the % CO2 in the exhaust gas stream. The % CO2 absorbed was taken as the % CO2 in the exhaust gas minus the % CO2 in the feed. Theoretical calculations found that as the % alkali in solution increases, the solubility of CO2 decreases. This was verified by experimental data, which found that a 2% alkali solution, by weight, was the ideal solution for CO2 absorption. Current research is focused on using the 2% alkali solution for permanent storage of CO2 via mineral carbonation to produce a value-added product.

May 1, 2012

By Italo Rodríguez

"El presente texto señala la metalogenia encontrada en el distrito de Suyo, provincia de Ayabaca, departamento de Piura. La mineralización en el distrito aurífero de Suyo se presenta en secuencias volcánicas Albiano–Turoniano de las formaciones La Bocana y Lancones, y son controladas por sistemas de fallas NE–SO y N–S. Está constituida principalmente por vetas irregulares de Au–Ag. Espacialmente, están distribuidas sobre los pórfidos de Cu–Mo. Las fallas o zonas de fractura rellenadas con mineralización están estrechamente relacionadas con el cinturón hidrotermal y con centros volcánicos. Las zonas y depósitos que están comprendidos dentro de Suyo son: Chivatos, Santa Rosa, Alvarado, Bolsa de Diablo, Roca Rajada, Quebrada Salitral, QuebradaCabuyal, Quebrada Suyo, San Sebastián, Potrero, Cuchicorral, Cerro Servilleta, Naranjo, La Leona, Alvarado, entre otros que albergan mineralizaciones de Au de hasta 2 onzas por TM y valores anómalos de Cu. "

May 1, 2012

By K. A. Natarajan

The utility of yeast, Saccharomyces cerevisiae, in the separation of quartz from hematite is demonstrated. Yeast cells, as well as their metabolites, functioned as flotation collectors, depressants or flocculants and dispersants for hematite and quartz. Interaction between yeast and the above minerals resulted in significant surface chemical changes, rendering quartz surfaces hydrophobic and hematite hydrophilic. Mineral-specific extracellular proteins and exopolysaccharides were secreted by yeast cells when grown in the presence of quartz and hematite, respectively. Quartz could be efficiently separated from hematite through microbially induced flotation and selective flocculation.

May 1, 2012

By M. E. Mellado

In this paper, we present an a posteriori validation of a heap leaching analytical model using sensitivity analysis. The model is suitable to represent the process of heap leaching of solid reactants from porous pellets and is based on a combination of the leaching kinetics at two levels: particle and heap. The validation is simple, and a sensitivity analysis can easily be performed. The simplicity of the analysis provides insight into the control and optimization of the heap leaching process without strong mathematical complexities. The model and the corresponding sensitivity analysis include the effects of heap height, particle sizes, flow rates and several operation-design variables. Using a case study, we discuss the importance of model validation based on sensitivity analysis. We also comment on several choices for optimizing the process. We had three goals in this work: a posteriori validation, highlighting the importance of model validation and providing insight into optimization choices. We can conclude that the model has good internal logic and there are no extra variables; i.e., all of the variables in the model are necessary.

May 1, 2012

By Jian Liu

The dissolubility of a natural sphalerite (ZnS) in the entire pH range was theoretically calculated, and its practical dissolution in an aqueous solution at different pH values in an inert environment, together with its surface properties after dissolution, was fully investigated. The results of the investigation indicate that the total concentration of Zn (CZnT) decreases significantly with the increase of pH value, while the pH value is set below 8; however, it reverses when the pH value reaches 8. Such a tendency is similar to that of the theoretical calculations, although the experimental CZnT were much higher than those of the theoretical calculations. The X-ray photoelectron spectroscopy (XPS) of the sphalerite surface after its dissolution under alkaline solution shows that a polysulfide (Sn 2-) surface layer with a binding energy (BE) value of 162.96-163.25 eV is present on the surface, and the percentage of Sn 2- increases significantly with an increase in pH value; the undissolved and dissolved sphalerites under the acidic solution have a negligible difference in S2p peaks. The surface S/Zn ratio of all dissolved sphalerites shows a marked Zn enrichment and S deficiency. An atomic force microscope (AFM) view of the sphalerite surface, after its dissolution under the alkaline solution at a pH of 12, shows that the surface is significantly different in morphology from that of the undissolved one.

May 1, 2012

By Hussin A. M. Ahmed

Oxidized coals are difficult to float. Therefore, in this paper, a special flotation procedure was investigated for upgrading this type of coal. The procedure is called direct contact flotation. It relies on mixing dry coal either with pure (anhydrous) flotation reagent(s) or microemulsion. By applying the new direct contact flotation procedure, a coal yield reaching > 95% using anhydrous flotation reagents was achieved, but with relatively high consumption of reagents (up to 30 g/kg). This high reagent consumption may be attributed to the fines included in the flotation feed (100% less than 0.5 mm, with 40% less than 75 µm). On the other hand, the clean coal yield was found to be approximately 88% when mixing dry oxidized coal with microemulsion droplets from dodecane and dodecyl tetra (ethylene glycol) ether (C12E4) in water at a total reagent dosage of 10 g/kg. The direct contact of coal either with unhydrous reagents or microemulsion also provided a high flotation selectivity.

May 1, 2012

The roasting process of copper concentrates containing variable quantities of arsenic in a fluidized bed regime was analyzed, considering the technical literature published on the topic in the last quarter century. Although emphasis has been given to the analysis in the fluidized bed regime, other processes have also been considered, under a reducing, neutral or oxidizing atmosphere. The kinetic mechanisms of roasting, as well as the models that have been applied or those likely to be used to explain the kinetics of arsenic removal, are analyzed. Regarding the kinetic mechanisms, those that have been applied to copper concentrates with both high and low arsenic content are included. The roasting kinetic model includes the kinetic data analysis techniques, general models, equations and an estimation of the conversion degree through dynamic, differential and integral methods, as well as particular models for mineralogical components, such as smelter dust and copper concentrates with low and high arsenic content.

May 1, 2012

By Jennifer J. Swenson

El presente texto describe los problemas de deforestación, precios e importaciones de mercurio en la minera artesanal aurífera de Madre de Dios. En ese sentido, a medida que la interconexión de la economia mundial avanza, es más difícil que países en desarrollo aprovechen las fuerzas lucrativas de la demanda global para lograr una sostenibilidad social y ambiental. En consecuencia, los países en desarrollo contienen un peso ambiental desigual en relación con los países desarrollados qie importan materias primas. Como ejemplo de ello, el precio del oro aumentó, así como la minería aurífera informal y no industrial en los países en los países en desarrollo y el mal manejo del mercurio en el uso del oro, repercutió en el medio ambiente y los mismos mineros, al igual que el problema de la deforestación. Por ello, se plantea un programa para enfrentar dchos problemas en la región de Madre de Dios y reducir el aumento de la minería informal.

May 1, 2012

By Howard J. Haselhuhn

The effectiveness of selective flocculation and dispersion processes for the concentration of hematite ore are strongly dependent on the ionic content of the process water. It has been noticed that magnesium ions are more detrimental to iron recoveries during gravity separation and flotation processes than calcium. This phenomenon was studied by measuring the zeta potential of hematite ore at various concentrations of sodium, magnesium, calcium, strontium and barium at a pH of 11. Results show that zeta potential inverts from negative to positive at concentrations as low as 0.16 mM of magnesium ions in the solution. It takes a significantly higher concentration (1.25 mM) of calcium ions to achieve the same effect. This difference is attributed to the ability of magnesium ions to adsorb to all surface hydroxyl groups, whereas calcium, due to its larger size, can only adsorb to every third hydroxyl group. This hypothesis was confirmed by results similar to those seen with calcium when this test was repeated with strontium and barium ions. The tendency for calcium ions to adsorb to every third surface hydroxyl group causes higher concentrations of calcium to be less detrimental to hematite concentration processes than magnesium.

May 1, 2012

By Dave J. Porter

Si bien, los proyectos son el camino para que una organización minera cumpla con su estrategia, la gran mayoría de su historial de cumplimientos son un fracaso puesto que el impacto del proyecto no es tan rico en sus etapas y las organizaciones mineras no pueden cumplir con su visión y estrategía. En ese sentido, el presente texto señala la importancia de una adecuada gestión de proyectos para que la organización minera cumpla con su estrategia. Así, la madurez de la gestión de proyectos es un indicador de éxito continuo y requiere de visión, compromiso en las etapas iniciales, ya que sus ganancias son difíciles de cuantificar.

Apr 1, 2012

By Gerardo Álvarez

"Existe un proyecto en minería que está relacionado con equipos rotatorios utilizados en la molienda del mineral. Dichos equipos requieren un buen funcionamiento para el proceso productivo y monitoreo posterior de la operación. Sin embargo, cuando ocurre un mal funcionamiento, puede ser verificado mediante el rompimiento de la normalidad. En ese sentido, el presente texto describe el estudio de la factibilidad como un sistema capaz de enviar datos desde el equipo rotatorio sin necesidad de fabricarun equipo adicional para encontrar el punto que indique a qué posición corresponde cada registro. Es decir, se incorpora la tecnología Bluetooh a la transmisión de datos para el registro de la posición que está ubicado el sensor y así aprovechar las ventajas relacionadas con el registro de nivel de la señal. "

Apr 1, 2012

By Fidel Torres Inga

El presente texto describe la aplicación de las pruebas con sistemas de iniciación electrónica en la Compañía Minera Suyamarca – unidad Pallancata del grupo Hochschild. Los exámenes se desarrollaron entre diciembre del 2010 y enero del 2011. Los parámetros técnicos evaluados en las pruebas son: el avance efectivo de la voladura, sobrequiere y medias cañas y el costo de extracción de material minado, perforación y voladura.

Apr 1, 2012

By M P. Sandy, J B. Albrecht

"Narrow vein mining can be loosely defined as mining operations involving orebodies with a true thickness of less than 4 m. Some authors have limited the term to steeper-dipping orebodies where the ore will rill under gravity. However, ænarrow veinÆ can also legitimately refer to some of the flatter orebodies, such as many of the platinum, chrome and gold deposits of Southern Africa, and several in Australasia including Bullen (at Norseman), Sunrise Dam, Telfer (Patterson, 1993) and the famous æflatmakesÆ at the Emperor Gold Mine in Fiji (Gordon and Harmse, 1993). Where the orebody dip is less than about 40¦ additional effort is usually required to remove the broken ore, including the use of scrapers, hydraulic monitors or remote-operated excavators (Tombs, Buckingham and Hancock, 2008).Working in such narrow orebodies presents particular operational and geomechanics challenges. A range of mining methods have been developed or adapted to exploit narrow orebodies including:cut-and-fill,narrow vein bench or longhole stoping,Alimak stoping,shrinkage stoping, and methods for shallow dipping orebodies (including Airleg and mechanised methods).The paper discusses some of the advantages and disadvantages of each method with a focus on geotechnical aspects including mining sequence options, stress management, ground support requirements, dilution and recovery.CITATION:Sandy, M P and Albrecht, J B, 2012. An overview of geotechnical issues in narrow vein mining, in Proceedings Narrow Vein Mining 2012 , pp 185-194 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 26, 2012

By V Mutton, L Potts, D Joyce

This paper describes the method of extracting sill pillars within the underground operation from under unconsolidated mullock fill at the Cracow Gold Mine. This pillar recovery method was initially successfully used to recover sill pillars at Crusader Mine, Western Australia in 2001. Globally significant resources have been sterilised due to the placement of loose rock fill above crown pillars and within adjacent stopes. The method described here offers significant opportunities to increase recovery of sill pillar recoveries.The royal orebody sill pillars at Cracow Gold Mine form a significant resource. Extraction of these pillars needed to be undertaken with minimal ore dilution and maximum ore recovery. The application that was selected to consolidate the loose mullock fill above each pillar used an injection grouting process (Minova FB200).Cracow Gold Mine mining method is bottom up bench mining. The pillars were left within the orebody to allow for stoping to commence whilst the decline was being developed. Due to the remainder of the orebody being extracted the only access to consolidate the backfill was from the sill pillar extraction level. Numerous problems were encountered and overcome from product selection and trial, system of injection to extraction.This pillar recovery process achieved a 95 per cent recovery of the sill pillar compared with an estimated 60 per cent typical for other mining options.CITATION:Potts, L, Mutton, V and Joyce, D, 2012. Pillar recovery at Cracow gold mine using grouted consolidated mullock, in Proceedings Narrow Vein Mining 2012 , pp 179-184 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By G B. Ebsworth, J Krokowski de Vickerod

Several drilling programs at Maldon have produced 7790 core samples, which were assayed for gold, with 2825 of the samples assayed for nine other metallic elements. There is a lack of correlation between gold and all other elements. The situation, however, changes dramatically when sorted according to the abundance of arsenic. In the populations where As >200 ppm, there are strong, positive correlations between gold and several elements. There is also a strong positive correlation of Au with the weighted sums and products of all elements with the elemental averages as a weighting factor, and Bi*Sb and Bi*As elemental products. In these populations, there is also a strong positive correlation between the logarithms of Au and logarithms of each element, as well as the elemental sums and products described above. The correlation coefficients increase with higher As cut-off values.All elemental distributions but especially gold show a high-nugget effect and display high skewness and dispersion, low kurtosis, and common outliers. The distributions of their logarithms are several magnitudes less scattered and without outliers. Thus, the logarithmical distribution correlations are best for practical use.Correlation coefficients were T-tested and are statistically significant. The elemental correlations, particularly those of logarithmic values of weighted sums and Bi, could be used as a gold path finding tool at Maldon. After a preliminary assay for gold and arsenic, only samples with As > 200 ppm should be assayed for other elements. Higher values of gold-correlated elements or elemental ratios, in samples with low gold grades, may increase confidence that gold is under reporting due to its highly nuggetty nature.CITATION:Krokowski de Vickerod, J and Ebsworth, G B, 2012. Correlation as a gold path finding tool at Maldon, Victoria, in Proceedings Narrow Vein Mining 2012 , pp 131-144 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By I M. Platten, S C. Dominy

The Clogau St DavidÆs gold mine has a recorded production of around 81 000 oz Au and it is the largest mine in the Dolgellau gold-belt and BritainÆs most prolific historical producer. The original mine was first worked for copper, however; in 1854, gold was found in waste material from the St DavidÆs section. In recent times the mine has operated intermittently between 1983 - 2007. The principal black shale-hosted gold-bearing reef (Main Reef) can be traced for about 3 km, striking approximately NE-SW and dipping steeply between 60¦ - 90¦ SE. The reef system pinches and swells, changes strike and splits into a number of smaller branches. Reef width is variable, ranging from over 6 m to a few cm and in places reducing to small irregular blobs. The reef is internally complex and composed of swarms of narrow (1 - 300 mm) subparallel veins separated by country rock sheets. The gold-bearing veins within the reef package are discontinuous; though generally possess bonanza grades running 10s - 100s oz/t Au. It has historically been shown that some gold-rich vein segments can grade up to 300 oz/t Au. The predictability of the gold-rich segments is poor, but has been shown to be related to presence of the Clogau (black shale) Formation, and/or the mechanical interactions of the reef with greenstone sills, reef branching and splitting and/or cross-fractures to form ore shoots. The mine is currently being re-evaluated as a potential small-scale selective operation.CITATION:Dominy, S C and Platten, I M, 2012. Geology, mineralisation and potential of the Clogau St DavidÆs mine, Dolgellau gold-belt, Gwynedd, Wales, in Proceedings Narrow Vein Mining 2012 , pp 101-120 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012

By G Morgan, C Kemp

In December 2010, a trial of borehole radar technology was conducted to test the usefulness of the technique in better refining the position and geometry of narrow vein orebodies away from the primary data sources of drilling and mapping of development excavations. This paper summarises the reasons why the technique was applied, describes the testing methods selected and summarises the outcomes of the trial.Poor reconciliations of recovered metal from a section of an orebody at Jundee mine site, Western Australia, led to an investigation that identified insufficient understanding of the geometry of a narrow vein orebody as a potential cause. This orebody was situated between mapped development excavations and away from surrounding drill holes. Borehole radar was identified as a possible technique that could supply information on vein location and continuity away from other data sources allowing more accurate orebody modelling and subsequent stope optimisation.A borehole radar instrument (10 - 100 MHz frequency) was inserted into pairs of purpose-drilled boreholes on either side of relatively well-constrained mineralisation and the radar reflection data was collected. This process was repeated in five locations across the mine to represent the most common geological settings, lithologies and orebody varieties encountered at Jundee to determine the suitability of applying the technique in each of these settings. Collected, processed and interpreted radar data was compared to other geology data collected independently for verification and interpretation.Conclusions drawn from the analysis were that the technique could effectively determine the following features of the mineralised veins in the majority of test environments: geometry of veins, magnitude of offsets where structures intersect and orientations of planar structures with short strike length. The technique was very useful in selecting the appropriate structural interpretation where available data could lead to multiple, equally likely, interpretations.CITATION:Kemp, C and Morgan, G, 2012. Using borehole radar to refine orebody interpretations in a narrow vein gold deposit, in Proceedings Narrow Vein Mining 2012 , pp 121-130 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 26, 2012