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By Burford B. D, Johnson N. W, Rohner P

Under design philosophy, the Hilton concentrator produced lead, zinc and LGM (lead plus zinc) concentrates. The LGM (Iow grade middling) concentrate was produced by combining coarse middling streams from the lead and zinc circuits, regrinding and subsequent flotation. Mineralogical examination of the zinc circuit middling stream prior to regrinding suggested that production of zinc concentrate from the zinc circuit middling stream should be possible by rearranging existing plant equipment. Laboratory testing of samples of plant products, however, showed that regrinding combined wi th the usual reagent suite was nO1 sufficient to produce a zinc concentrate of the required specifications.Examination of the process water highlighted a problem with dissolved salts in the circuit water, which was solved by in-circuit precipitation of the dissolved ions with soda ash. Implementation of the procedure in the concentrator effectively transferred to the zinc concentrate all sphalerite previously recovered to the LGM concentrate.

Jan 1, 1994

By Semple DG, Leach TM

A continued exploration programme has further defined the geology of the Tolukuma vein system, verified the resource indicated by Newmont, and identified potential for additional mineralisation. The resource at Tolukuma Hill, designated as Zone C, is a measured 440,000t @ 17g/t Au and 46g/t Ag with an additional indicated resource of 120,000t @ 16g/t Au. A diatreme breccia localised at an intersection of structures, and a relationship of gold to base metal sulphides, are highly indicative of a porphyry association. Typical epi-thermal features such as crustiform banded quartz and quartz pseudomorphing. platy calcite are also present and locally contain lesser gold mineral-isation. Pre-existing dilatant structures have acted as a host to the ore fluids, resulting in the formation of the semi-continuous Tolukuma-Gulbadi veins over a 1100m strike. A fluid flow model suggests that mineralising fluids were sourced from the diatreme margins and migrated laterally along dilatant structures. Bonanza gold grades are derived through fluid quenching in the flexure between a hanging wall split which hosts much of the Tolukuma Hill resource and the feeder graben structure. Thus, the relationship between the pre-mineral structural geometry and fluid upflow at the margins of a diatreme breccia, controls the ore setting. Potential for more ore remains within the Gufinis and the 120 veins as well as in the outlying Prospects.

Jan 1, 1994

By Mitchell I, Gelfi P, Dunne R, Pyper R

Dump leaching at Teller in its present form began in the fourth quarter of 1988 as an adjunct to milling operations. Initial plans called for a dedicated dump leach facility capable of processing ore at an annual rate of 2.0 million tonnes. Construction of a dump leach pad, collection and process ponds, carbon adsorption system, elution plant as well as reagent addition and ancillary facilities was initiated in mid-1988. During the course of construction, additional reserves were proven. As a result, design throughput was increased to 4.0 Mtpa. Leach pad capacity and solution supply systems were upgraded to handle the larger throughput. However, the carbon adsorption/elution facilities were not upgraded due to space limitations. During 1990 it was decided to expand the dump leach operation to 6.0 Mtpa. Construction of a second leach pad was required which was initiated in early-1991. Plans were again upgraded prior to completion to a target annual throughput of 10.0 million tonnes was. A further two leach pads have been constructed. The first of these being completed during the latter part of 1992. Construction of the latest and largest pad commenced early in 1994.

Jan 1, 1994

The main objectives of this paper are to identify the main sources of coal dust and to investigate measures for minimisation of dust generated at these sources at the Bukit Asam open cut mine, on the island of Sumatera, Indonesia which uses a

Jan 1, 1994

This paper explains why the valuation of mining assets is often a very different exercise from the valuation of the shares in the mining company which owns those assets. The fundamental reason for this is that mining assets, and the shares of the company which owns those assets have different risks. In order to properly value mining securities it is essential to: ò ensure all the different risks and other factors which impact on the value of the mining assets and the value of the shares are taken into account; and determine the extent to which the different risks and other factors are addressed in the value of the mining assets and the value of the shares so as to avoid double counting or not counting at all. If the alternative, but far from consensus, view is accepted that the correct valuation methodology to apply to shares in mining companies should be based on option pricing theory then conventional valuation practice of both mining assets and shares in mining companies will need to be fundamentally reassessed.

Jan 1, 1994

By Johnston R. F

The factors which influence the reduction of chromite are investigated with special reference to Coobina chromite. This was compared with a South African chromite ore. The reduction characteristics are outlined and the reduction kinetics studied Temperature has the most significant effect, followed by particle size, silica addition and type of coal.Electron microprobe analysis of the products indicates that iron in the chromite is first reduced at temperatures above 1100°C, followed by chromium at around 1200°C. At temperatures greater than 1200°C metallic iron and chromium are formed simultaneously and subsequently give an iron-chromium-carbon alloy. It was observed that the metallic carbide contains a small amount of silicon. The decomposition of the chromite spinel was observed to pass through the FeO.Cr2O3, MgO.Cr2O3 and MgO.AI2O3 forms before slag formation. It is concluded that Coobina chromite is suitable for the production of ferrochrome if direct prereduction followed by intensive bath smelting is used.

Jan 1, 1994

A narrow (200-300m) zone of amphibolite facies metamorphic rocks underlies the Papuan ophiolite near the Musa-Kumusi divide, SW of Popondetta, Oro Province. The amphibolite rocks are bounded up-section, to the NE, by peridotite and gabbro of the ophiolite; and down-section, to the SW, by mafic greenschist, which in turn overlies blueschist facies mafic schists of the Emo Metamorphics.Amphibole compositions within the narrow contact zone show a strong chemical zonation which reflects a steep thermal gradient, with maximum temperatures >800¦C at the peridotite contact. The zonation is recorded in Ti content and A-site occupancy, relative to Al'¦

Jan 1, 1994

By Sagrabb T

In a company's quest for financing the development of a new mine, it will make calls on stockbroking houses and banks. The choice of the best-fit broker or banker is of great importance, and in the case of the miner, this is a house that has an intimate understanding of the mining industry, particularly one that has a solid staff complement of personnel with operating mine experience at a senior level. The most important document that the company will present to support its financing request will be the Feasibility Study. It cannot be too strongly emphasised that this document must be absolutely comprehensive and cover items including: (a) Geological review; (b) Resources and reserves; (c) Mineability; (d) Mining schedule; (e) Metallurgy; (f) Process plant description; (g) Infrastructure and services; (h) Management and operations; (i) Environmental and social impact; (j) Capital costs; (k) Operating costs; and (1) Financial analysis. The elements listed above represent major topics and require a great deal of expansion in the body of the document. Rothschild Australia Limited assists its client companies by supplying a detailed framework so that they will be in a position give the bank the information it needs to complete its technical `due diligence' study within a mutually agreed time. The client company will advance its position markedly if it uses well-known, reputable consultants to either complete or assist with the various aspects of the Feasibility Study. Such an approach will give the potential financier confidence that the company has taken a professional and unbiased attitude in determining the feasibility of the property in question. Most small- to medium-sized mining companies, both within Australia and overseas, will prefer, or will find it mandatory, to request a project funding package rather than opt for a corporate loan. This is because the company either does not want to tie all of its assets to the performance of one project, or that it is a one or two project company with no other substantial assets and is therefore unable to obtain a corporate loan. Upon receipt of the Feasibility Study, the bank will use the data supplied by the company in its cash flow analysis to build its own financial model. The purpose of this is to examine the timing of

Jan 1, 1994

Resource developers in Papua New Guinea (PNG) are now, more than ever before, confronted with land-owner related issues that can hinder their corporate objectives.Development of PNG's custom-arily owned land since independence has brought sudden changes with mixed success. Exploitation of mineral resources has had its share of problems, and Highlands Gold Limit-ed's (HGL) endeavours in the central Highlands of PNG are no exception.

Jan 1, 1994

By Eupene GS

The valuation of exploration properties which contain no identified resources or reserves is the most subjective of all valuation tasks likely to be carried out by a geologist. The geoscience rating method proposed by Kilburn (1990) recognises this inherent subjectivity but also attempts to apply some discipline to the valuation process. Some other methods used for valuations of this type clearly lack discipline and are open to misuse and abuse. The Kilburn method essentially requires the practitioner to justify all aspects of the valuation process. The valuer must specify and, more importantly, quantify aspects which enhance or downgrade the intrinsic value of each property. The intrinsic value is called the ""base acquisition cost"" (BAC) and it represents the average cost to identify, apply for and retain a base unit of area of title. The BAC and base unit of area both vary with different types of exploration and mining title but remain constant for similar types of titles in the same mineral tenure regime. In the Kilburn Method the enhancement/ downgrading factors are determined by the geotechnical prospectivity (Kilburn Method) within the title. A modified version of the Kilburn Method presented here (""Modified Kilburn Method"") also focuses attention on other real variables besides the geotechnical attributes which influence valuations of this type, viz., competition for tenure and activity in the markets in which the exploration properties are being traded. The most active such market at present is the stock market. By utilising uniform BACs and base units of area (for similar titles) for all exploration properties (in practice in Australia this is only possible within a particular State or Territory), the method exposes the valuer's opinions of each of these variables to the scrutiny of the investor. The investor (or his professional adviser) is afforded the opportunity to directly compare valuations on different properties by different practitioners and can assess how the final valuation is weighted in respect of geotechnical prospectivity, competition for tenure, and stock/financial market sentiment. No other method currently employed in Australia to value mineral exploration properties affords the investor this `luxury', which some may argue is their right.

Jan 1, 1994

By Nott M. C

The oxidation of xanthate collectors to xanthate/dixanthogen results in a higher hydrophobicity of sulphide minerals surfaces due to the action of dixanthogen. This higher hydrophobicity can be proved on a fundamental level by examining the st

Jan 1, 1994

By Sneddon A

Expansion of central production facilities at the Kutubu Petroleum Development Project in Papua New Guinea (PNG) required excavation of a steep hillside overlooking operating crude oil processing, storage and pumping facilities. Drilling and blasting were used to remove a large volume of rock which varied from hard limestone to soft sandstone, with zones of soft clay and many underground caverns. Similar ground conditions had made it very difficult to predict and control blast-ing results during previous excavation in this area.Special conditions of the project included restrictions on ground vibration levels at a high pressure oil pipeline and pump station within 100m of the blasting area, and a prohibition on any flyrock. As work progressed, some blasting was necessary with 20m of installations being constructed on the levelled project site. Thus blast design, drilling and charging were carefully controlled to avoid any incidents which could interfere with oil production or progress of the construction project.

Jan 1, 1994

In 1952 when universities imposed fees on students and most students won either Commonwealth or Government department or private scholarships to study, I won a scholarship to study mining engineering at the University of Technology in Sydney. The univ

Jan 1, 1994

By Gillies A. D S

The paper presents a review of research in the area of explosible coal dust with respect to safety in the underground mining environment. Research over the last several decades has concentrated on generating dust clouds in small scale laboratory explosion chambers to study flammability limits and the physical and chemical variables which affect explosion propensity. The validity of this approach is discussed and the results obtained for a range of coal types compared.

Jan 1, 1994

The Fosterville goldfield, situated 25 km east of Bendigo, Victoria was at its peak between 1894-1910 with some 47 600 ounces produced (Figure 1). Since that time intermittent mining and tailings retreatment was undertaken until Bendigo Gold Associates delineated a viable resource and commenced an open cut heap leaching operation in early 1991. Unfortunately they encountered financial difficulties and Perseverance Exploration purchased the mine in April 1992. Perseverance operated a successful heap leach operation nearby Nagambie, 100 km east of Fosterville. Based on its acquired heap leaching experience, Perseverance Exploration was able to instigate operational changes to create a successful small gold heap leach operation. The major change was the using of the original multi-use leach pad as a single-use leach pad. The available data allows for a comparison of the two operating systems.

Jan 1, 1994

Process engineering principles are used to analyse the features of leaching processes for large masses of low grade, unprocessed ore. Different performance characteristics are related to the numerous variants of these processes. The variant for which reagent enters a heap only via the input solution is further subdivided into three modes of operation. The three modes may occur in testwork and full-scale operations; the effects of process variables on the rate of the process are completely different in each mode. The mode can be identified by the time at which reagent first appears in the pregnant solution. It is related to the ratio of the height of the heap and the thickness of a band of ore in which the reactions are localised. Synthesis of the phenomena occurring within a heap via a computer program has produced a quantitative relation for the reaction band thickness. The program has been validated for several different systems. The overall achievement is that the mode of operation and the rate of the process can be forecast before column testwork is commenced. Some applications of the outcomes to testwork, process design and operational tactics are described.

Jan 1, 1994

The Mt Todd Project is located 42 km northwest of Katherine in the Northern Territory. The identified mineral resource estimate for the Batman gold deposit is 66.7 million tonnes (Mt) grading 1.4 grams/tonne (g/t). Proved and Probable Ore Reserves total 42.3 Mt grading 1.5 g/t. Orebody definition and reserve estimation is based on extensive percussion and diamond drilling. Exhaustive bias analysis comparing grades produced from different drilling techniques has been undertaken. Similarly, detailed check assaying programs have been run to validate grade data produced by commercial laboratories used during the exploratory drilling phase. Significant biases were established from both studies and appropriate 'corrections' were made to drillhole databases prior to final resource and reserve estimation. 3D geostatistical modelling has been utilised for resource and reserve estimation, with specialist consultants contracted for this work. At all times, interpreted geological controls on mineralisation, provided by

Jan 1, 1994

It has long been recognised that applications of the Net Present Value (NPV) investment decision making methodology can have serious deficiencies in situations where investment can be delayed and, once made, various options allow increases or decreases in the level of output. NPV valuation can undervalue the project if it does not incorporate future flexibilities or ""options"". It is important to realise that a proper valuation of a project (ie, valuation of its future cash flows) must incorporate an analysis of optimal future decisions involved in managing the project. Current valuation cannot be divorced from a consideration of future decision making. There is now a considerable amount of literature, mainly academic, identifying and exploring ways of remedying these deficiencies in the application of NPV. While the necessity of period by period analysis is sometimes acknowledged, little if any practical illustrative model building has been published to date, aside from algorithms using continuous time stochastic processes which deny access to the uninitiated.

Jan 1, 1994

About 3km2 of the central Luise Caldera, in which the Lihir orebody is located, is geothermally active wit.lj gas seeps and fumaroles, and in some areas, a water table at boiling point.The proposed mine, adjacent to Luise Harbor, will be excavated to more than 200m below sea level and will extend into the geothermal system to depths at which current rock temperatures are 170¦C.

Jan 1, 1994

The paper first outlines the conceptual basis for evaluating and controlling geological risk. Geological risk, the economic reflection of the uncertainties associated with tonnage, grade, and other pertinent deposit parameters, is evaluated in terms of economic risk criteria. Delineation provides the deposit information required to appraise and control this risk. The improved reliability of geological estimates resulting from additional delineation reduces the economic risk associated with mine development and production decisions. However, the benefits of delineation, subject to diminishing returns, have to be weighed up against the direct and time costs involved. These costs decrease base case economic values and shift the probability distributions of possible outcomes towards, lower values. The optimum amount of delineation normally is achieved short of the point where economic risk is minimised, depending on the mining company's relative preference for a higher base case value or a lower economic risk. Then, two open pit copper mine examples, based on actual situations, are analysed to illustrate the application of the concepts presented. The first case concerns the extension of ore reserves at an operating mine. Finally, a new mine development opportunity is considered.

Jan 1, 1994