Search Documents

By B Young

Variable bench heights, interaction with underground workings and a steeply dipping orebody are challenges faced daily by geologists at Xstrata Zinc’s Black Star Open Cut (BSOC) Zinc/Lead/Silver mine in Mount Isa, Queensland.BSOC has been in operation since late 2004 and was developed to extract the surface extents of the Zn/Pb/Ag mineralisation mined in the underground lead mine. To date many large scale stopes and extensive development drives have been intersected and successfully mined. The stratigraphically hosted orebodies strike in a north-north westerly direction, dipping ~75° west. Ore production from the pit is currently at 4.5 Mt/a.Historically, sampling was conducted using a multiple spear technique from blasthole cuttings. This method proved to be relatively reliable when blasting benches at a consistent height, but a requirement to vary bench heights to safely collapse and then mine through underground workings reduced sample representivity to unacceptable levels.The purchase and commissioning of a production rig which had been converted for reverse circulation (RC) has allowed for the flexibility of a small rig, with the capacity to easily drill 48 m holes while ensuring sample quality. Sample quality is not the only benefit of introducing RC grade control. By collecting grade control data well in advance, informed decisions can be made by planning, drill and blast and mining departments weeks beforehand, rather than hours before firing. Additionally, seeking operational value to offset higher drilling costs has proved positive with benefits including increased confidence in orebody wireframes, accurate tonnage and grade for proceeding five benches along with the ability to representatively test metallurgical response on a tight grid spacing.

Aug 22, 2011

By P Collier

From 1972 until 1989 when operations were suspended Bougainville Copper Limited (BCL, owned 53.58 per cent by Rio Tinto Limited) operated a large open pit mine and processing facility at Panguna on Bougainville Island, Papua New Guinea producing copper concentrate containing significant quantities of gold and silver.BCL has a stated vision of recommencing operations at Panguna. In 2008, Rio Tinto, on behalf of BCL, conducted a multi-disciplinary study to assess the technical and financial viability of redeveloping the Panguna operation. One of the key outputs of the study was a Joint Ore Reserves Committee (JORC) Code compliant mineral resource statement based on the existing block model and fundamental data, archived since mine closure. Historical data (including the resource block model and drill hole data) was recovered from computer archives by a former Panguna mine employee familiar with the various obsolete data formats, thus maintaining an unbroken chain of custody of the data by Rio Tinto since operations were suspended. No additional data were collected as part of this study.The extensive data and documentation archive facilitated a sufficiently detailed evaluation of the fundamental data and model to support an updated resource statement. Table 1 of the JORC Code was used to guide the model validation process.Reconciliation of blasthole and metallurgical plant data with the reserve model, indicated that the copper and gold drill hole composite database was significantly biased towards underestimation in several key domains due to a combination of the following: mineralisation loss during core loss, core loss (minor), vertical drill holes failing to intersect sufficient subvertical mineralised fractures and veins, drill hole spacing too wide, and variable diamond drill hole core size. The resource model evaluation was based on three material types (all previously mined at Panguna), that were defined based on cut-off grade and rock type parameters: direct feed ore – material for delivery directly to the plant, preconcentration and screening ore – subeconomic material beneficiated to produce fines of economic grade, and waste. Three pit shells and designs were generated based on three separate sets of economic parameters. These economic parameters were also used to assign material types to the block model. The three resulting models were then evaluated against the corresponding pit shells.Classification of the resource was approached conservatively due to the inherent bias in the drill hole data. Consequently only Indicated and Inferred resources were tabulated.The study highlighted the importance of maintaining detailed documentation pertaining to resource estimates and operational history, particularly reconciliation, and the value that can be added by a simple, low-cost data compilation exercise.

Aug 22, 2011

By D C. Ford

The Argyle AK1 orebody was discovered in 1979 and subsequently found to be a large, economically viable reserve with high grade diamondiferous ore. Production began via an open pit operation at the end of 1985 and has continued for some 25 years to present day. This, however, will come to an end in the next few years with production moving to an underground operation via block-cave mining methods.A series of studies from 2001 - 2005 was carried out; diamond drilling commenced after approval in 2006, from an exploration drive to determine the likelihood of the current proposed block cave operation.In 2006, development of the block cave project began, in order to realise the part of the orebody below the extent of the open pit mining operation.Development of the block cave technique, comprising an undercut level beneath the target zone of the orebody with subsequent extraction level 15 - 20 m beneath, relies largely on a number of block-caving parameters (hydraulic radius, rock type, structure and orientation of stress and grade of the orebody). These all have an influence on cave ability and eventual profit of the operation. Evaluation of further potential for taking this orebody beyond the block cave phase with options such as sublevel-caving are being considered for the UG-2 portion of the resource/reserve. Diamond drilling for this work is currently under revise.The challenges faced in transitioning form the surface operations to the underground, comprising a changing workforce, converging development drives, underground aquifers, major excavations and transportation of ore via automation are intriguing.

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 S C. Dominy

Grade control programs aim to deliver economic tonnes to the mill via accurate definition of ore and waste. The foundation of a successful program is high quality sampling supported by geology and a suitable data management and modelling system. Underground sampling methods include chip, channel and panel samples; grab/muck pile samples; and drill-based samples. Grade control strategy is related to mining method and orebody type. Sampling protocols must be designed to suit the style of mineralisation in question. Holistic studies focussing on ore mineralogy and gold particle deportment, size and distribution are required for sample collection and preparation protocol optimisation through ‘Theory of Sampling’ application. Where possible, such programs should be undertaken early in the life of a project. Appropriate assaying procedures are also required. Program implementation will require suitably skilled individuals to train and mentor staff, with ongoing Quality Assurance/Quality Control (QA/QC) monitoring and review will allow protocols and staff to be updated as required.

Aug 22, 2011

By C Buchanan

For a long time there has been a known relationship between the northern Heavy Mineral (HM) deposits of the Murray Basin to the extensive north east trending ridges in the area. These ridges have been a targeting tool for exploration and have uncovered some significant discoveries, some of which have turned into mining projects. Bemax’s Ginkgo and Snapper deposits are good examples of how the faulting helped create an economic deposit but also result in significant planning issues in the exploitation of these deposits. Material balance, induration and pyrite issues have been made easier to manage through good geological understanding of the deposits.

Aug 22, 2011

By N Schofield

For the sampling of particulate materials in mineral exploration and mining, the fundamental sampling error (FSE) introduced by Gy is a measure of the constitutional heterogeneity of the sample lot and is expressed as the relative standard deviation of subsample grades of a particular mass. The FSE is presently regarded as an important indicator of quality for samples used in resource estimation. Constitutional heterogeneity describes an ideal state of heterogeneity with respect to all constituents of the lot such that the fundamental error among subsamples of a particular mass is minimised.In this paper, the term ‘sampling precision’ used in relation to mineral resource sampling usually refers to a statistic based on the assay results drawn from pairs of separate subsample splits of multiple sample lots. The pairs of splits are extracted after the lots have been prepared by crushing and pulverising to meet specified criteria of grain size and subsample mass. There is presently no generally accepted method of calculating the ‘sampling precision’ from such paired data but some form of the relative standard deviation that is consistent with definition of the FSE is preferred here. The work of Thompson and Howarth in the 1970s on geochemical analytical precision, which has been subjected to extensive examination and criticism by Stanley and Lawie (2007), and that of Francois-Bongarçon since the 1990s forms the background to the discussion in the paper.A significant aspect of the application of Gy’s sampling theory to sampling in gold deposits is the requirement that the fundamental error be maintained at less than ±20 per cent. The most important reason for this is to ensure that the effects of other sampling errors such as the grouping and segregation, and increment delimitation which can cause local and global biases in sampling are kept as small as possible. This paper is focused mainly on the quality of sampling in gold deposits and looks at an alternative to the use of a constant sampling precision applied to a collection of lots with varying average grade. A theoretical model for the FSE based on duplicate sampling is presented and the simulated results of the model are compared to practical outcomes of real duplicate pairs drawn from multiple sample lots. The goal of the work is to present a more informative analysis of duplicate sample data from multiple lots which may allow a more informed view of the potential for bias generating errors during sample preparation and processing.

Aug 22, 2011

By A D. Caccioppoli

Grade control systems within Rio Tinto Iron Ore have proven to be robust, when mining full benches. The Hope Downs 1 operation hosting two Marra Mamba Iron Formation deposits (North and South Deposits) presents a new challenge, where increased mining selectivity due to moderately plunging N-verging folds has made flitch mining necessary in the South Deposit. Poor flitch blasthole sample duplicate results in South Deposit over a 12 month period, compared to North Deposit, have highlighted concerns with grade predictions. In contrast a new grade control methodology (grade splitting) was proposed to alleviate blasthole sampling bias, utilising geological mapping and mineralogical logging, currently practised throughout Rio Tinto Iron Ore Pilbara operations, to estimate theoretical grades for each flitch from a single blast cone assay. To assess this method, reverse circulation holes (RC) were twinned to blastholes establishing an ‘actual’ grade. These blastholes were assayed using current flitch sampling techniques where: flitch positions were estimated, flitch positions were marked with paint, and a full cone sample was taken for ‘grade splitting’. Using these data sets multiple grade predictions were produced, then analysed using Half Absolute Relative Difference (HARD) statistical analysis. In addition to testing these grade control methodologies two other findings were ascertained: an inherent bias in blasthole assays exists particularly in the top flitch, where an average absolute difference of 0.6 per cent in SiO2 and 0.42 per cent Al2O3 was measured; and assays derived where kaolin rich soft shales are intersected were less representative. This is likely to be due to these materials not being properly represented in blast cones. Grade splitting accurately estimated block chemistry, except for a slight under-prediction in Al2O3 and P compared to current grade control methodologies. This method is a viable alternative where grade distribution is stratigraphically controlled.

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 A Fowler

The unpredictability of the location, grade and width of narrow-vein deposits presents difficulties for mine geologists and engineers attempting to estimate, schedule, forecast and mine their deposit profitably. This unpredictability stems not only from the grade distribution within a vein, but also the irregularity of vein geometry in three-dimensional (3D) space. Traditional deterministic methods of modelling vein geometry do not account for the inherent variability of the veins, resulting in significant errors when using limited drill hole information. This paper presents a probabilistic method of modelling narrow-vein deposits using sequential gaussian simulation (SGS), which can quantify this variability and improve production forecasts. Vein geometry, thickness and grade are simulated to provide a number of different equi-probable realisations that each honour the drill hole and face sample input statistics. An example is presented from the Augusta narrow-vein Au-Sb mine in central Victoria, where the simulation results are validated against the input data and survey pick-ups of the veins along ore drives.

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

By C Lutherborrow

The Sangdong Tungsten/Molybdenum Deposit is located in the Republic of Korea and was discovered in 1916. At this time Korea was a colony of Japan. It was mined for two years after discovery closing in 1918. Full production recommenced in 1933, and from that point until 1945, it was the major source of tungsten for armour plate for the Japanese military. After World War 2 the US government ran the mine until late 1946. The mine operation then passed to Korean ownership but production ceased during the Korean War and did not recommence until late 1953. The mine ceased operation in 1992 due to low metal prices. From the late 1960s to the time of closure, Sangdong was the largest tungsten mine in the world (Kim, 2002). An understanding of changing mining methods over time has been critical in assessing the potential of redeveloping the Sangdong Deposit.

Aug 22, 2011

By Y T. J Kwong

With the recent emphasis worldwide on environmental protection and sustainable development, finding an enriched mineral deposit no longer guarantees mining development. Only if the identified resource can be exploited in an environmentally-friendly manner is it possible that a mine may be developed. Designed primarily to aid with exploring for similar deposits of a particular type, traditional genetic ore deposit models tend to ignore the fact that all mineral deposits are characterised by type-specific environmental signatures. In fact, how an ore deposit can be mined, the commodities of interest extracted and the resultant mine wastes managed are all largely dictated by the geology and mineralogy as well as the environmental setting of the deposit. An environmental ore deposit model integrates such related information to identify the environmental challenges associated with mining an ore deposit of a particular type and facilitates the selection a suitable combination of methods to minimise environmental risks and impacts. Given that environmental management consumes a large portion of the budget for a modern mining project, making informed decisions at all stages of mining development can reduce the overall project cost. Through case examples, this paper demonstrates how environmental ore deposit models may be useful in mine permitting, active mining and in site decommissioning. It is only through an innovative and flexible approach that the mining industry can shed its tarnished image and gain the social license to mine.

Aug 22, 2011

By B Taylor

The Perseverance deposit is the most southerly known economic copper/gold deposit within the Cobar gold field. The deposit is situated approximately 12 km to the south-southeast of Cobar and is essentially blind to surface with the top of economic mineralisation occurring 750 m below ground level.Based on the December 2010 resource estimate (inclusive of reserves and net of depletion) the deposit contains 3 011 000 tonnes at 6.1 g/t Au and 0.90 per cent Cu (590 000 oz of gold and 28 000 tonnes of copper). The deposit is comprised of four principal lenses, the Perseverance, Hulk, Zone B, and Hercules lenses. In excess of 90 per cent of the known resource tonnes are contained within the Perseverance and Hulk lenses. The deposit is shear related and hosted within lower Devonian rocks of the Cobar Basin. The competency contrast of rhyolites juxtaposed against sediments by the Peak-Perseverance shear is the principal control on mineralisation. Both the Perseverance and Hulk lenses are primarily hosted by brecciated rhyolites juxtaposed against Chesney formation sediments across the Peak-Perseverance shear. This faulted rhyolite sediment contact roughly defines the global orientation of the deposit. The Perseverance lens continues within the shear for up to several hundred metres beyond the extent of the faulted rhyolite sediment contact. Mineralisation within the shear beyond the faulted rhyolite contact zone is hosted by sheared silicified sediments. The Perseverance lens remains open at depth and to the south.The Zone B and Hercules lenses, which are significantly less important in tonnage terms, are hosted by rhyolite breccias within the main body of the rhyolite and appear to be only tenuously related to the Peak-Perseverance shear. Within the Perseverance lens, the presence of northeast trending high grade breccia veins developed oblique to the north-south trending shear system has led to the development of steeply north plunging high grade ore shoots within a globally north-south trending mineralised domain. These high grade shoots have limited horizontal continuity but significant down plunge extent.The presence of coarse gold and the resulting strongly skewed nature of the gold grades, in conjunction with controls on mineralisation which are not parallel to the mineralised domain, has led to predictive difficulties regarding stope performance.Strong heterogeneity of the gold content of the ore and geological controls on mineralisation which are not parallel to the global trend of the mineralisation impose a set of difficulties which sound geological control is helping overcome.

Aug 22, 2011

By D Price

Mining at the Tuckabianna Mining Centre in the Murchison district of Western Australia ceased in 1997, after the production of 550 000 ounces of gold at an average grade of 2.5 g/t from 22 separate open pits (Tectonic Resources, 2006). Like many historic mining camps in WA, Tuckabianna was considered exhausted of gold, such that an economic project could not be sustained on the existing resources. Since 1997, three separate companies have owned the Tuckabianna leases. Each of these companies completed minor exploration and some form of mining study to determine if mining could be sustained. All three companies concluded that the remaining resources were insufficient to support an economic project. Silver Lake Resources acquired the adjacent Tuckabianna, Comet and Moyagee projects in 2007 with a combined resource base of 693 000 ounces of gold in 11 separate deposits. In September 2009, Silver Lake commenced exploration in the Murchison targeting extensions to the main resources at the three project centres and completing targeted regional exploration across the lease holding. At the same time, a detailed evaluation of all historic drill data was completed and all resources re-estimated. This has culminated in the resource base increasing to 1.5 million ounces of gold in 20 separate deposits, with two new discoveries being made. In August 2010, a mining feasibility study was commissioned. Preliminary results from the study indicate that an economic stand alone project can be sustained for a minimum of five years. The ability to bring the remaining resource from a once unloved project into production is due to a number of factors: historically high gold price, combining adjacent projects into a single operation, evaluation of all resources regardless of size and grade, and well funded exploration directed to both resource extensions and new discoveries. Using the Tuckabianna Project as an example, this paper attempts to outline the strategy Silver Lake used to define the resources to justify the capital expenditure required for production, and give a summary of some of the successes and failures made as the projects progress towards mining. Examples of where being too rigid and over exuberant have resulted in less than optimal use of expenditure are used to high-light the difficulties in exploring in mature terrains. Evaluation of the success of a company’s exploration strategy at all scales from project acquisition to target selection is critical to the success of future project development. This paper has been part of that process for Silver Lake with some interesting discussions and insights being made. It is hoped that some of the points discussed can be applied to other projects to help achieve the best outcome from the assets available to a company.

Aug 22, 2011

By G Phillips

The Merlin project is situated 130 km south of Cloncurry in North West Queensland, Australia. It is located within the Pre-Cambrian Mt Isa Inlier and is grouped within the Eastern Fold Belt. The host rocks are metasedimentary rocks of the Proterozoic Kuridala and Staveley Formations adjacent to the Mount Dore Granite.Merlin zone represents part of the Mount Dore polymetallic deposit containing copper, zinc, silver, gold, lead, cobalt and most recently has been found to host molybdenum mineralisation. This is intimately associated with economic grades of rhenium, a naturally occurring metal that is an important component of high temperature aircraft engines. The host rock sequence is a 200 m thick zone of metasediments sandwiched between competent granite in the hanging wall and brittle quartzite in the foot wall. A distinct shear marks the contact between the granite and metasediments. The host rocks are comprised of three main rock types: black shale, phyllite and altered banded calc-silicate.Mineralisation dips to the east at approximately 45° in a package of fine grained pelites and banded calc-silicates. The top 150 m of the sequence is typified by black shale and phyllite. The lower 50 m is typified by pink banded calc-silicate. The main molybdenite zone is located at and parallel to the pelite-calc-silicate contact. Down dip, the zone splits into two or three veins hosted by the calc-silicate rock suite and haloed by thin, steep dipping, stylolitic molybdenite veinlets.The deposit was discovered in 2008 by routine infill reverse circulation sampling conducted for the Mount Dore copper deposit. One hole penetrated below the main target Cu horizon and intersected visible molybdenite. During 2009 and 2010 a 50 × 50 m diamond drill pattern delineated a total mineral resource of 6.7 Mt @ 1.3 per cent Mo, 23g/t Re, 0.3 per cent Cu (mostly Indicated Mineral Resource with minor Inferred Mineral Resource). The resource has been estimated using ordinary kriging within grade domains. Access to the deposit has commenced via a decline and production through the nearby Osborne flotation concentrator (70 km south) is expected in 2012. All facilities and resources are fully owned and operated by Ivanhoe Australia Limited, a public listed company on the Australian and Toronto stock exchanges.

Aug 22, 2011

By R Cooksey

The Globe-Progress Mine is an open pit gold mine that is part of the larger Reefton Goldfields deposit located on the West Coast of New Zealand. The regional geology comprises a series of north to south oriented fold structures that have undergone post-deformation mineralisation. The structural geology within the mine itself is more complex, with major shears hosting numerous high-grade mineralised quartz shoots and splays that have been historically mined.The selective mining of ore within the pit is challenging due to the orientations of the hanging wall and footwall areas of the main Globe shear zone, the lithologies of these areas which range from highly brecciated and sheared material to competent mineralised host rock, and in the hazards presented by the numerous old historic underground workings. The coordination of drilling, modelling and excavation of the ore requires careful planning to maximise recovery whilst operating with the pit design boundaries.Grade control packages are custom designed to reflect the orientation of the footwall and hanging wall mineralisation. The shear material in the footwall zone dips between 60° and 70° and requires angled drilling whereas the footwall mineralisation is contained in shallow dipping quartz veins sub parallel to bedding and can be vertically drilled to best intercept the mineralisation. Ore excavation is directed so that the contact between the footwall and hanging wall is mined in the correct direction so that any non-visual ore contacts can be safely mined and that the ore-waste dilution is reduced.The ongoing grade control and selective mining of the Globe Progress deposit continues to deliver high grade ore for processing by ensuring that waste and dilution of ore is reduced and that recovery is maximised.

Aug 22, 2011