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By J Vann

Geometallurgy is inherently multidisciplinary and it gains its power to deliver improved outcomes for the minerals industry by bridging silos between disciplines. This cross-disciplinary approach unlocks value, identifies (and avoids) value destruction and provides a pathway to better implementation of an energy efficient and sustainable minerals industry. Despite this promise, we argue that the cross disciplinary approach also represents the greatest threat to the success of geometallurgy. Some key cross disciplinary issues identified are:Geometallurgy has so far evolved in the technical sphere, mainly by collaborations of geologists and metallurgists. Consequently, in many cases the business dimensions and value have not been incorporated. Financial and risk evaluation viewpoints need to be assimilated into the geometallurgical paradigm. In fact, until such measures are integrated into practices, the value cannot be fully demonstrated.The historical and current efforts on geometallurgy have been highly focused on improved sampling and measurement of geometallurgical properties or appropriate proxies. This work has been driven by professional and academic geologists and metallurgical engineers. It is notable that mining engineers (who are critical in the value delivery of geometallurgy through changed planning approaches) have so far been at the margins, or absent. The construction of valid three dimensional (3D) geometallurgical models raises some important organisational, mathematical and geostatistical considerations. The enhancement of resource models to account for geometallurgical aspects must be managed carefully if the full value of geometallurgical thinking is to be realised.The use of 3D geometallurgical models to change business decision making and practices is the real nub of the problem. We believe sophisticated scenario based evaluation methods are required if the potential impacts of spatial rock properties on processes further down the mining value chain are to be realistically evaluated. Such changed practices require ‘whole of value chain thinking’ to embed this change into the business in an ongoing way.Because profitable geometallurgy demands changed approaches to business decision-making and also organisation of the firm (radically changed in some cases), the senior executive viewpoint must be incorporated into the language and thinking of geometallurgy. This is unavoidable if the establishment of a geometallurgical approach to project evaluation, development and operation is to be successful and sustained.A powerful analogy for the problem faced by geometallurgy is the transformation of safety culture in the mining industry in the past 20 years. We argue that, as in the safety revolution, explicit models, cultural change and management of the ‘soft’ dimensions of the problem are pivotal to success of geometallurgy. In light of this, we propose a model (‘the Geomet Curve’) that gives a framework and pathway for geometallurgy in seven steps. The implications of this model for technical and organisational steps required at different stages are discussed.

Sep 5, 2011

By E Macmillan

For any processing plant there will be deleterious elements or minerals which affect production or quality, and a strategy to predict their occurrence and mitigate their impact is required. An early objective of the Olympic Dam geometallurgy program was prediction of the acid consumption and gelling behaviour of the ore, which affects leach recovery, throughput and circuit availability. The geometallurgical test program measured the response of a wide range of ore types, and then relationships between mineralogy, metallurgy and chemistry were developed. Thus the drivers of acid consumption and triggers for gelling events could be described in ways that were meaningful to plant operations.To enable optimisation of the mine planning and ore blending processes, the parameters driving metallurgical response must be translated to the block model. Data support is critical in populating a block model. Assay information is easily obtained, but mineralogical and metallurgical information is more expensive and time consuming to collect. Hence population of a block model with mineralogical and metallurgical values using a conventional geostatistical approach is not always possible.An alternative approach employed at Olympic Dam was the development of a suite of assay-to-mineral algorithms. These algorithms were calibrated using all available mineralogical information, and this enabled the calculation of mineral abundances for more than 1.5 million assayed samples. Estimation of the minerals in the block model, and the generation of acid consumption values for each block could subsequently occur.The use of back-calculated mineralogy from assays as part of process model generation is an innovative tool which can be used for mine planning and optimisation and to ensure the plant does not receive any unwelcome surprises. Ultimately, one purpose of geometallurgy is to predict potential processing issues and their drivers so that these can be mitigated. A strategy to achieve this is outlined hereafter.

Sep 5, 2011

By R Knight

The spatial variability of geometallurgical characteristics in a mineral deposit can have significant impact on financial and mine planning, mineral processing, concentrate quality and tailings composition throughout the life of a project. These characteristics that may determine the success of a project are not readily apparent to geologists unless they are integrated with deposit geology and assay data, modelled in 3D and incorporated into resource block models.One of the primary objectives of geometallurgy is to integrate and incorporate various geologic, geotechnical and geometallurgical parameters into resource block models, which typically are limited to in situ tonnes and grade of economic metals. Critical attributes, such as concentration of deleterious elements that affect the project viability need to be identified and integrated into the resource block model early in the exploration stage to predict project profitability and address potential environmental impacts.Using data from a volcanogenic massive sulfide deposit we present an example of the integration of ore geochemistry (cadmium, arsenic and antimony) with the results of preliminary, bench-scale metallurgical test work in a 3D geometallurgical model that predicts subdomains of poor-quality concentrate and tailings containing environmentally-sensitive elements. This critical information was incorporated into the existing resource block model in order to inform both financial modelling and mine planning.This example demonstrates that geometallurgical data can be effectively integrated with geological and assay data using Leapfrog MiningTM software (Leapfrog Mining) early in the exploration stage of a project. Three-dimensional representations of geometallurgical data can be created directly using primary additive data, as well as from proxies of non-additive parameters. Resource block models can be updated continually with new information as the project passes from exploration through production. In addition, the software allows for 3D visualisation of the characteristics of the materials that will eventually constitute the mill concentrate, tailings, and waste. This study emphasises the critical importance of establishing a systematic geometallurgical approach early in the exploration stage that can be continuously updated with new information throughout the life of the project. In the example that we present, sulfide ore that had otherwise been identified as high-value (in the absence of geochemical and metallurgical data) turns out to be low-value ore due to concentrate penalties and increased environmental impact.

Sep 5, 2011

By L Lorenzen

The selection of samples for metallurgical test work is generally focused on providing geologically representative samples. One of the major problems experienced with metallurgical test work using drill hole data, is the small sample sets selected for metallurgical testing. Major process and financial decisions are being made from results obtained using snapshot samples. Snapshot samples means that samples are basically selected only by grade and spatial location with the assumption that the rest of the orebody or portion of orebody is similar and will respond metallurgically the same way – ie the assumption is that the mineralogy and lithology are basically the same as the test sample. From the test work, algorithms were usually developed and used to describe throughput and recovery using some explanatory variables including grade (mineral chemistry) and ore hardness. These algorithms were then used in the recovery models to determine tonnes produced and plant throughput. However, the metallurgical parameters are a function of many geological factors including grade, lithology, alteration, mineralogy, spatial relationships and SG. In previous years, the limited mineralogical information available was deemed enough for the metallurgist to make decisions as to how many samples are needed to evaluate the metallurgical performance of the ore during processing, and subsequently the basis for the plant design. If the orebody is consistent and not complex or refractory (thus, relative simple lithology), then only spatial and grade samples will be needed to evaluate the throughput and recovery, so limited mineralogical information may be acceptable. There is now, however, an increasing realisation that the mineralogy and geology change, as do the metallurgical characteristics of the orebody, so limited samples may not be sufficient for effective metallurgical test work.It is the purpose of this paper to discuss the effect correct mineralogical information has on the subsequent metallurgical test work program and process selection using a case study. Factors such as type of rock, rainfall and topography are thought to influence the minerals that ultimately form in various orebodies, with the result that different orebodies often react differently during metallurgical test work programs. It is therefore important to obtain accurate mineralogical and elemental deportment data, which will also indicate where the valuable metal containing minerals are located within the orebody. The better you plan and execute your metallurgical test work program during the early phases, the more accurate the decision-making process will be during the selection phase. Improved integration between geology and metallurgy data gathering (geometallurgy) during early phases will result in more accurate predictions with regard to throughput and recovery during modelling and process. Equipment selection will be considerably simpler in later phases with early planning, with improved mine and process scheduling and subsequent net present value (NPV).

Sep 5, 2011

By M J. Newton

As part of the AMIRA P843 project Keeney and Walters (2008) describe how the principal components analysis (PCA) method can be used to identify classes of samples with similar metallurgical characteristics. However PCA does not take account of the location of each sample in 3D space. This paper describes a study to analyse the spatial distributions of the classes and determine appropriate modelling methods to control the estimation of the comminution parameters and mill performance indices into a 3D block model. This includes but is not restricted to geostatistical techniques that are used for grade modelling. The starting point for the study is the class definitions and the regression models for estimating the comminution parameters and performance indices. Each sample is assigned a class and the spatial distribution of each class has been analysed using different techniques including the calculation of variograms. This establishes whether the classes can be used as domain control for estimation into the block model – a procedure similar to using geological rock type domains for controlling the estimation of grades for a resource model. However, standard geostatistical estimation methods such as ordinary kriging assume that the variable being estimated is additive or linear. This assumption is valid for variables such as grade but this is not necessarily the case for the comminution parameters or the performance indices. Therefore the estimation procedure must either use variables that are definitely additive or the effect of potential non-additivity must be tested and accounted for where possible.The results of the study show how performance indices such as recovery, throughput and specific power can be estimated into the block model. This model is then combined with the geological model to provide a multi-parametric model that is used to optimise the mine planning and scheduling activities which can lead to significant improvements in NPV.

Sep 5, 2011

By M J. Nugus

The structural models developed by exploration and mining geologists are most commonly concerned with the ‘main structures’ or key constituents that pertain to the associated mineralisation. To this end, it is recognised that the geological and exploration models, which are developed, are essentially ‘fit for task’ and the scale-related variances are not always realised at an early stage. In fact, in many cases anomalous intercepts along different trends and of variable apparent continuity have often been neglected as ‘back scatter’ and not important. Recognition of the importance of subordinate structures as mineralising hosts suggests that additional opportunities exist outside the primary and main structures. History shows that opportunities are often not realised where gold is hosted in orientations not parallel to the predominant trend of the schistosity, main fault or shear zone.Another reason for the importance of subordinate structures can be understood from their roles in a percolation network. Subordinate structures can access the large fluid fluxes provided by backbone elements, but, as dangling elements, they provide greater opportunities for gold precipitation mechanisms and hence may constitute essential parts of the resource. Therefore, the role, understanding and consideration of the smaller-scale and orthogonal structures should be considered during all facets of exploration, resource development, delineation and mining.

Aug 22, 2011

By R H. Sibson

Magmatic and/or hydrothermal fluid systems in island or mountain arcs self-organise to critical states subject to perturbation by changes in the regional stress, which plays a controlling role in the containment of overpressured fluids. Whether the magmatic arc is under compression (eg Andes, northern Honshu) or extension (eg Taupo Volcanic Zone, New Zealand) is a key factor controlling the ease of magmatic or hydrothermal fluid ascent. Abrupt changes in the stress regime have the potential to induce major episodes of fluid redistribution. Large earthquake ruptures along plate boundaries may induce such changes over broad areas, also contributing to fluid redistribution by renewing fault permeability along the causative rupture zone or reactivating distant fault-fracture permeability by shaking from radiated waves. High-resolution geophysical investigations of active arc systems and the subduction thrust interface underlying their fore-arcs reveal repositories of overpressured hydrothermal fluids. In active magmatic arcs under compression such as NE Honshu or Cascadia, there is evidence for a heterogeneous distribution of overpressured hydrothermal fluids in the middle-to-lower crust trapped around the base of the upper crustal seismogenic zone. Investigations of the subduction thrust interface responsible for great (Mw = 8.0) ‘megathrust’ earthquake ruptures has revealed in some instances (Cascadia, SW Japan) the existence of a belt of non-volcanic tremor (NVT) with accompanying slow slip episodes defining the base of the megathrust interface at 40 ± 5 km and 350°C??-??550°C. Aqueous fluid at these depths is likely derived from dehydration reactions accompanying the basalt-eclogite transition in subducted oceanic crust. NVT sequences in the hanging-wall above the interface may be defining migration pathways into the overlying crust.The potential for eruptive episodes in magmatic arcs and redistribution of hydrothermal fluids is assessed in the light of the stress changes that followed the 2011 Mw9.0 Tohoku subduction thrust rupture which extended along strike for over 500 km and down-dip for over 150 km, with maximum slip of c 50 m.

Aug 22, 2011

By D Smith

The Broken Hill deposit is located in Australia in the far western region of New South Wales. The deposit was found in 1883 and has been mined continuously since its discovery. It is considered the largest lead, zinc, silver deposit that has been discovered in the world and originally contained around 340 Mt of ore at a grade of around 12 per cent lead, ten per cent zinc and 150 g/t silver. The material remaining in the deposit represents only a fraction (perhaps ten per cent) of the original resource. Several of the world’s largest mining companies can trace their origins to the Broken Hill Field. The remaining resources on the CML7 consist of two large lower grade resource lodes that have not been subject to mining, some scattered areas of zinc lode material and the pillars and remnants of the main lead lodes.The deposit occurs in metamorphic rocks of the Broken Hill Group a division of the Willyama Super Group contained within the Curnamona Craton. The Broken Hill Group rocks have undergone multiple phases of deformation. Metamorphism is granulite grade with major shears cutting through the deposit having been retrogressed to mica schists. The deposit lies in an antiform associated with the second phase of deformation.The resultant proposed mine is situated on Consolidated Mining Lease 7 (CML 7) which occupies a strike length of 3.6 km in the central part of the 7.8 km long footprint of the orebody. Underground mining on CML7 ceased in 1975 with surface mining of silver chlorides in the weathered zone continuing until 1991. CBH Resources has been continually working to define and evaluate the remaining resource since 2002. This work has included four surface drilling programs, two underground drilling programs, an exploration decline, enormous amounts of compilation of historical data and detailed three- dimensional (3D) modelling of historical mining and the resource lodes. It is currently planned to commence production at the Rasp Mine in late 2011. The operations will produce from previously unmined lodes and from remnants and pillars.This paper primarily aims to encapsulate the processes involved from information acquisition through to resource estimation and also to highlight some of the challenges encountered and the specific techniques and practices used to overcome them. Many of the experiences at Broken Hill are applicable to all brown field sites.

Aug 22, 2011

By N Burgio

Block cave mines are often thought of as rock factories where high volumes of production are mined from a fixed area suggesting little requirement for geological input and control. Yet caving operations have peculiar and specific technical requirements from prefeasibility through to post-mining reconciliation. Whilst essential elements such as resource definition, geological interpretation and sampling strategies are common to all mining methods, planning for a block cave requires a different emphasis and philosophical approach in how we deal with these issues. We will examine why a geoscientist’s input is critical towards the successful planning, design and monitoring of a caving operation.

Aug 22, 2011

By C F. Stokes

The Trident Gold Deposit has been successfully developed by Alacer Gold (formerly Avoca Resources Limited) into a 1.3 Mt/a operation in the space of four years from discovery to first gold pour (2008). The current in situ Resource for Trident is estimated to be 5 900 000 t @ 5.0 g/t for 940 000 ounces at a cut-off of 1 g/t or 2 g/t depending on ore style. Production to date (Alacer and previous owners) is in excess of 500 000 ounces. The deposit lies towards the southern end of the Norseman-Wiluna Greenstone Belt in the Archaean Yilgarn Craton, where it is centred on the historical Higginsville Mining Centre, midway between the world class gold centres of St Ives (+15 Moz) and Norseman (+6.5 Moz). Trident is hosted primarily within a thick, weakly differentiated gabbro with subordinate mafic and ultramafic lithologies and comprises a series of north-northeast trending, shallowly north plunging ore zones. The deposit comprises two main mineralisation styles; large wallrock-hosted ore-zones comprising sigmoidal quartz tensional vein arrays and associated metasomatic wall rock alteration (Eastern Zone, Western Zone and Apollo) hosted exclusively within the gabbro; and thin, lode-style, nuggety laminated quartz veins (Athena and Artemis) that formed primarily at sheared lithological contacts between the various mafic and ultramafic lithologies. The initial interpretation of the Trident Deposit was based on steeply-dipping structures controlling the zones of mineralisation, with much of the targeting and drill-testing aimed at this style of orebody. Subsequent exposure of the orebodies has identified a series of shallow-east dipping mineralised systems (interpreted to be large reverse shears) that at their intersection with the steep-dipping structures cause significant gold enrichment. It is postulated that both orientations are primary fluid pathways with the intersection between the two resulting in zones with significantly high concentrations of gold mineralisation (in excess of 300 000 ounces). This new understanding on ore controls at Trident has identified that the thin lode-style shear-hosted laminated veins are continuous for over 1700 m along strike as they step en echelon down-plunge. In addition, a repetition and periodicity to the intersection between these steep dipping lode-style systems and the shallow-dipping mineralised zones (estimated to be 700 - 900 m down-plunge) has been identified which has considerably increased the down-plunge potential of the Trident Deposit.

Aug 22, 2011

By J Vann

The philosophical context of many activities in mine geology can be an important lever in adding value to operations. For mine geologists (including resource and grade control geologists) we argue that the tasks of problem formulation, observation and data collection, interpretation and modelling invoke various philosophical considerations whether the practitioner is aware of them or not.Constructing testable models to explain reality is the definitive aspect of any activity claiming to be ‘scientific’. A primary goal of mining geology is to build models that accurately predict reality to an acceptable degree and these include litho-structural, stratigraphic, grade control, resource or reconciliation models. What’s more, in mine geology we are often able collect additional drill samples or access new underground openings, for example, that can provide relatively rapid feedback on how predictive, and therefore useful, our models are. In this paper, we describe the key philosophical frameworks proposed for conducting scientific investigations, including falsification, the method of multiple working hypotheses and structural concepts of scientific theory. The strengths and weaknesses of these approaches are discussed and an attempt is made to relate them to activities undertaken by mine geologists. Common perceptions of what constitutes the scientific method have been dominated by how scientists do experimental physics and chemistry in particular. There are very important differences in the types of problem confronted in these experimental sciences compared to the ‘historical sciences’, such as geology, where the processes studied are unique and only evidential traces of past events are available. The philosophical implications of attempting to validate numerical geological models, such as resource estimates are also briefly considered.Some practical conclusions are drawn about how mine geology activities can be better implemented if practitioners are cognisant of the importance of philosophical considerations when attempting to gain new knowledge through a scientific investigation. We believe that the implications for creating additional value to a project or operation can be very significant when geology is applied by a practitioner with an understanding of the philosophical basis of the activities we think of as constituting a scientific investigation.Remember that all models are wrong; the practical question is how wrong do they have to be to not be useful? (Box and Draper, 1987, 74 p).The demand that theories be highly falsifiable has the attractive consequence that theories should be clearly stated and precise. If a theory is so vaguely stated that it is not exactly clear what it is claiming, then when tested by observation or experiment it can always be interpreted so as to be consistent with the results of the test. (Chalmers, 1999, 67 p).

Aug 22, 2011

By M Fitzgerald

Fimiston Open Pit is operated by Kalgoorlie Consolidated Gold Mines (KCGM) as a joint venture between Barrick Gold and Newmont Mining. Over 110 years of underground mining resulted in the development of nearly 3500 km of underground workings including backfilled and open stopes up to half a million tonnes in size. These voids significantly complicate blasting processes at KCGM, influencing blast movement direction and magnitude. Blast movement monitoring to improve mine reconciliations was identified as an improvement project in the business plan for the geology team in 2008. Following successful trials in 2008 to 2009, blast monitoring and translation of ore blocks were implemented as a permanent grade control program from late 2009 and is now part of the Management Operating System (MOS) of the mine. This paper presents a summary of results from the Blast Movement Monitoring (BMM®) data collected to date. Ore blocks at KCGM are translated primarily using BMM® data. This data is obtained from the BMM® system which measures the movement of a radio transmitter installed in a blast pattern from a preblast position to a post-blast position. The application of the data collected by the BMM® tends to be both mine site and blast specific. At KCGM, an average distance obtained from the BMM® data within a given shot is the primary method used for translation. In the case that BMM® data is unavailable, a theoretical movement vector established from Orica Shotplus with distances gained from the historical BMM® database is used. Data is presented in an ore loss and dilution exercise for a bench undertaken at KCGM to understand the potential effects on reconciliations. Improvements that have flowed from implementing blast monitoring include improved reconciliations when combined with other grade control improvement projects. The increase in liaison between the geology and blast personnel at KCGM has been a significant improvement gained from the implementation of the blast monitoring program. This has allowed a better understanding of blast movement and the effects on ore dilution and ore loss by the mine geology team. In addition, the discussion of blasting tie-in plans between geology and blasting personnel has been improved which leads to more favourable blasting practices that take ore movement into account.

Aug 22, 2011

By P Odins

Traditionally, stratigraphic deposits have been represented by a large number of gridded surface and product analytical models, related to each other by naming convention. This approach, though suitable for structurally simple stratigraphic deposits, does not lend itself well to addressing the complex style of stratigraphic deposits which are becoming more prevalent. In addition, the sheer number of individual gridded models involved makes it very difficult to keep a consistent audit trail of the overall deposit model. Recently, a new enhanced block model structure known as Horizon Adaptive Rectangular Prism (HARP) models was introduced to address these issues. An HARP model is specifically designed to allow stratigraphic units to be represented with virtually no loss of structural integrity, by allowing the tops and bases of the individual HARP blocks to ‘bend’ in concert with the input surfaces. By bringing together the best of grid modelling, triangulation modelling, block modelling and grade estimation, the HARP model opens up many exciting new opportunities for the stratigraphic geologist or engineer to take their model further than was previously possible. Examples of improvements in modelling methodology using a HARP model include: the ability to represent complex normal, reverse and thrust faulting; the ability to store thousands of additional analytical, geotechnical or calculated variables in each individual block; advanced visualisation, manipulation and plotting capabilities; and the ability to calculate volumes and resources against complex, three-dimensional (3D) solid pit designs. Finally, several ‘real world’ scenarios, illustrating how this advancement in modelling technology can benefit a wide range of mining professionals are detailed. These examples demonstrate how productivity gains can be made in both long-term resource modelling and short-term ‘week by week’ geological modelling as an adjunct to mine planning.

Aug 22, 2011

By J Coombes

The JORC Code lists the three core principles of Transparency, Materiality and Competency as fundamental to how mineral estimates are publicly reported. But where the principles of Transparency and Materiality can be considered conscious choices underlying decisions at the point of disclosure, Competency is a self-declared position statement based on one’s confidence to defend a technical position (as well as the functional pre-requisites of institute membership and a minimum of five years relevant experience).Developing competency in the mining industry is an ad hoc process, generally left to the individual to chart through a process of osmosis from personal work experiences that lead to a sufficient level of confidence. Companies that actually present professional development programs leading to reporting competency are rare. And even once a person has followed a program, there is no specific outline of what constitutes technical competence.No doubt, there are persons signing off on mineral statements who would benefit from developing and/or updating their technical skills (they may not even be aware of unmastered skills). Equally, there are technical practitioners who are sufficiently competent, but lack the confidence to step up and publicly report their estimates. Confidence in one’s own abilities plays a significant role in deciding when one is ready for the responsibility of submitting mineral estimates for public consumption. In addition, a person’s organisational support, such as the availability of suitable peers and professional development programs, and opportunities to learn from a variety of technical projects contribute to developing relevant experience. Increased exposure in both technical breadth and depth enhance confidence in one’s ability and competence.The mining industry provides numerous opportunities through direct and indirect means to develop the competency underpinning a stable reporting code. This paper examines a theoretical framework and associated processes that could be used to examine how the mining industry, companies and individuals collaborate to develop this vague principle of competency. This paper seeks to initiate research with the express purpose of enabling more effective and efficient development of reporting competency in our industry.

Aug 22, 2011

By V Pere

A geotechnical data management system has been developed to manage drillhole and mapping data generated from in house and consultant administered field programs. This system comprises a data collection interface with integrated validation, processing and reporting functionality. Development of the database required careful consideration of how and what geotechnical information is gathered in the field, a clear understanding of the interdependency of the parameters, and the outputs required to support geotechnical design.The acQuire Geoscientific Information Management System was selected as the preferred software to support the process because of its ability to easily manage data from capture in the field through to quality reviews and ultimately into reports. Initially only geotechnical logging of diamond core was considered, subsequently the system has been expanded to support additional geotechnical data sources such as laboratory test results, traverse and window mapping data. This paper focuses on the core logging data acquisition, validation, analysis and presentation of data.The acQuire Geoscientific Information Management System has proven to be a robust platform for the capture, interrogation, and reporting of geotechnical data. Data entry objects have been created to manage seven different areas of geotechnical data collection ranging from core logging to mapping to automated reports for falls of ground.

Aug 22, 2011

By S Juras

The terms measured resources and proven reserves denote the highest level of estimation confidence in all of the major classification schemes. But what do they really bring to today’s project or mine with respect to production planning and expectations? Initial reserve declaration does not need measured resources, just indicated resources. Economic viability of a project is assessed on total reserves with nary a bonus for the amount of proven reserves. Production plans are based on grade and tonnage goals that may only coincidently correspond to proven reserves. So are the measured and proven categories still relevant? Historically, and almost exclusively in underground mines, companies only allowed mining in areas of proven reserves. Some companies still follow that philosophy. But many others will mine a mixture of probable and proven reserves without hesitation. Also what of the undeveloped project in a new district – what is to be made of their declared measured resources and proven reserves? Measured resources are commonly set either by some type of proximity to data scheme or a matter of ‘feel’ based on the qualified person’s experience. The parameters for reserve conversion focus on the project as a whole and then a portion becomes classified as proven reserves almost solely based on whether the resource category is measured. So should the mining industry continue to use these categories of resource and reserve classification? This paper will present arguments about making these categories once again more relevant. A more disciplined usage of these categories may re-introduce their relevancy in public disclosures of resources and reserves. As well a more consistent usage in operations may lead to increased confidence in managing production targets and costs.

Aug 22, 2011

By D Howe

The Athena gold deposit was discovered in 2007 by Gold Fields Australia Ltd, at the St Ives Gold Mine, 35 km southeast of Kambalda, Western Australia. Gold anomalism was identified in sheared Paringa Basalt as a result of a regional scale aircore drilling program, in association with geophysics. In the 18 months following discovery, the deposit was intensely drilled and by June 2009, it was announced that the Athena deposit contained an ore reserve of 1.7 Mt @ 5.6 g/t for 316 koz. This was followed by a feasibility study, and as a result mine development commenced in November 2009.The Athena mineralisation is hosted in a discrete, north-south striking, steep to moderately dipping shear zone within the southwest dipping Paringa Basalt. Vein intensity has a strong correlation to grade and vein type varies from early thin quartz-albite-sulfide (pyrite and/or pyrrhotite) shear parallel veins to strong brecciation and irregular veining with quartz-albite-actinolite-biotite-pyrrhotite infill. The geology preproduction process developed at the Argo mine was refined and improved following a business improvement project. The aim of the process is to construct detailed geological interpretations prior to development allowing informed mining decisions to be made. The process delivers significant cost savings and revenue enhancements.The development of macroscopic classification scheme was critical to determine ore or waste in the early phases of mining. The Style of Deformation, Alteration and Veining (SAV) Code was the result, and has been enhanced as greater geological knowledge is gained over time.

Aug 22, 2011

By G Kirk

Definition and delineation of in-pit ore and waste material are the most significant tasks for an open pit production geologist; adding or destroying value in the mining value chain. Anglo American’s Mogalakwena Platinum mine, an open pit operation in South Africa moving 100 Mt/a, has recognised the value of improved material definition and is in the process of changing from blasthole to reverse circulation (RC) sampling for in-pit grade control. This is aimed at obtaining more representative samples, which are required to maximise ore recovery, minimise waste dilution and to increase the accuracy and confidence of production forecasts. Early in the project, it was realised that the key risks for implementing RC grade control were related to change management processes, rather than failure of technology. Recognising the importance of this issue, Mogalakwena chose an integrated implementation approach that incorporates all stakeholders of the mining cycle in order to develop a process that delivers maximum value and is sustainable within an active mining environment. The following core goals were addressed over five phases of project implementation: extensive definition and design of integrated project implementation, comprising: project buy-in and ownership from all key stakeholders, including survey, geology, mine planning, drill and blast, load and haul, maintenance, supply chain and finance; and detailed analysis of all potential issues and possible solutions, allocated to stakeholders as part of the scoping process; optimising hole patterns and drilling procedures, focusing on delivering maximum value for minimum cost using multiple scenario analysis from borehole data and operational sequencing requirements; and evaluation of lessons learnt during project implementation in order to optimise the technical solution and operational efficiencies. Although this project is not yet finalised, Mogalakwena Platinum Mine is already providing a blueprint for the effective development, implementation and optimisation of sustainable in-pit grade control RC drilling for other open pit mines within Anglo American plc.

Aug 22, 2011

By M J. Nugus

The Geita gold mines in north-western Tanzania have produced 5 Moz of gold from an estimated endowment of 15 Moz. They are generally classified as typical Archaean orogenic banded iron formations (BIF)-hosted gold deposits in banded iron formations as described by Goldfarb, Groves and Gardoll (2001); Neall and Phillips (1987); Phillips and Powell (1993) and Neall (1987). The controls on gold mineralisation have been reassessed to conclude that Nyankanga, and we conclude that Nyankanga, the largest deposits within the group, developed during a dynamic and protracted deformation history intimately associated with several stages of hydrothermal fluid flow and alteration. The fluid-induced fractures associated with gold mineralisation are primarily manifested as submillimetre to metre-scale fractures and breccias developed preferentially in rocks that have been previously deformed and altered by silicification or seafloor metasomatism. This realisation detracts from the exploration and mining strategies that would solely concentrate on fluid pathways and associated wallrock alteration and veining solely within the BIFs as hosts for economic gold mineralisation.

Aug 22, 2011

By A J. Daniels

Macraes Mine is a large-scale open-cut and underground gold mine located in Central Otago, on the South Island of New Zealand. This paper presents the role of geological mapping in the grade control process at Macraes Open Pit as a case study, and demonstrates how systematic geological mapping can add significant value to the mining cycle. Geological mapping has proved to be a valuable foundation for orebody interpretation and analysis.Practical applications and lessons learnt are summarised, including predictive control of the orebody, improvement of geotechnical modelling, and identification of further exploration targets.

Aug 22, 2011