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By McMahon D

The approach to valuations at the Normandy Poseidon Group is a measured and methodical process that utilises skills sourced from a number of different disciplines. Whilst being subject to a strict set of guidelines, it is also sufficiently flexible to be able to cope with the considerable variety across the resources industry. The group uses Discounted Cash-Flow (DCF) techniques extensively in order to develop a base valuation. Other external factors (eg the market) are, however, also taken into account when forming a view on value. Other methods of valuation are used in tandem or as alternatives depending on the task. DCF techniques are an important tool but would never be used in isolation. Considerable care must be given to developing the DCF analysis as its components (eg discount rate) are prone to misuse. Whilst the valuation process is quite detailed and scientific, it is really only as good as the inputs or assumptions (technical, financial, etc) that are used. The methodology used remains consistent whether the group is undertaking the corporate planning process or making an acquisition.

Jan 1, 1994

By Kelly D, Moore C

The Golden Mile, which has been mined continuously for the past 100 years by both underground and more recently open pit methods, occupies an area of 1.2 km by 4 km adjacent to the city of Kalgoorlie Boulder in Western Australia (Figure 1). Large-scale open pit mining at the Kalgoorlie Consolidated Gold Mines (KCGM) Fimiston operations is currently extracting 7.8 million tonnes of oxide and sulphide ore for a total production of 522 000 oz per annum. The effectiveness of grade estimation techniques at KCGM has been examined with reference to existing 10 m bench sample data from all operating areas within the Eastern Lode System of the Main and North pits. The aim of the study was to recommend practical parameters for grade control estimation. The review included comprehensive variography and comparison of nonparametric estimation methods (Joumel, 1983) such as indicator kriging and probability kriging with ordinary kriging, leading to the development of improved grade control parameters and procedures for both daily quality control and short term mine planning. This paper reviews the geological, statistical, geostatistical, mining and modelling features studied in order to present KCGM's Mining Department with recommendations for improving grade control.

Jan 1, 1994

Milling operations at Misima Mine are discussed, with specific reference to the application of energy and cost saving concepts. Design stage innovations and post-commissioning developments are covered. General operational problems are described with specific reference to problems associated with operating in a remote location.

Jan 1, 1994

The ASC has a dual role of business facilitator and law enforcer. Only certain types of expert report are of interest to the ASC. The powers of the old Companies Code and the Corporations law are compared. NCSC Policy Release 149 was dependent on the prescriptive powers given to the NCSC in the Companies Code. The Corporations Law does not give the ASC power to prescribe the contents of expert reports. The requirement now is for all necessary information. Research evidence is that some investors want simpler prospectuses while others need more detail. The ASC's examination of expert reports is after registration of primary documents. This leads to a necessity for experts to maintain adequate records.

Jan 1, 1994

The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994

By Fair A, Oxenford J

Syncrude Canada Ltd operates one of the largest open pit mines in the world at Fort McMurray in northern Alberta, Canada. In 1993, Syncrude mined and processed 131.2 Mt of oil sands to produce 67.0 MBbls of synthetic crude oil (SCO). This represents approximately 13 per cent of Canada's crude oil requirements. In addition to the oil sand mined, Syncrude moved approximately 96 Mt of overburden ahead of the mining operation in 1993. Since start-up in 1978, Syncrude has had outstanding success in improving the safety and reliability of its operation. Much of this success has been achieved by reducing risk through the application of new and improved technology. This improved safety and reliability has resulted in, among other things, very significant improvements in operating costs and profitability. This paper discusses some of the technology applications that have been introduced at Syncrude to reduce risks to people, equipment, operations and the environment. Three specific examples will be discussed in detail to demonstrate how reductions in risk have greatly improved the operation.

Jan 1, 1994

The AusIMM came into being to foster the spread of professional knowledge within its client industry. It has evolved along with the Australian mining industry for more than a century. If the AusIMM is to become the world's premier mining professional body (whether by design, or by default), then draw up a strategic plan to get there. Define your strengths and market them Define the priority areas for professional competence which we most need, Target the groups within Australia who can produce the people, Create an industry peer group to speed technology transfer.

Jan 1, 1994

The undeniable fact of life in the next 25 years will be the increasing difficulty of the physical conditions of Australian orebodies facing future miners. We are all familiar with names such as the 3000 orebody at Mt Isa, Hilton, Century, Macarthur River, Cannington, and Ernest Henry. These projects represent a significant. proportion of the planned underground mine development in Australia. Moreover, many of these new orebodies are an order of magnitude more difficult to mine and process than their predecessors. Extraction will be from deeper and potentially more hazardous working environments. Occupational health and safety considerations will place unprecedented demands upon mine operators and technology providers of the future.

Jan 1, 1994

By White A, Price G

The main assets of a mining company are its orebodies; the second are the people who find and use them.The graphs in Figure 1 were derived from a paper by Rob Macdonald of Rothschild Australia presented to The AusIMM Centenary Conference in Adelaide earlier this year. They show that the value of the industry on the Australian Stock Exchange halved over the past decade, despite the re-investment of capital equivalent to its full market capitalisation. Why is this so? The average dividend yields for the ASX Mining Index was never above five per cent during that period and barely averaged 2.5 per cent. Why then is $Ai million capital re-investment per employee since 1960 not enough to generate a rate of return to investors better than lousy bank interest? Do the investing public no longer regard our industry's assets to be world class?

Jan 1, 1993

By de Bruin J H

A method new to Australia was used for sinking a vertical shaft at Broken Hill in the development of Pasminco Southern Operations No 5 Ventilation Shaft. The 6 m diameter shaft of 820 m depth was planned with a construction method which allowed access for ground support as sinking proceeded by mechanical excavation.The vertical shaft boring machine, known as the V-Mole, was originally developed in West Germany. The machine operates in a manner similar to a full face TBM but vertically and the cuttings drop down a previously constructed raise. The raise is subject to stringent tolerance on verticality and must remain stable for the duration of reaming.

Jan 1, 1993

By Dickin FJ

Advances in the development and application of in situ imaging of mineral processing operations using electrical tomography techniques are reviewed and illustrated with case studies relating to pneumatic conveying, mixing and centrifugal separation processes. The potential for applying these methods to full three-dimensional visualisation of the dynamic behaviour of flow in pipelines and separators, and the resulting consequences for process-modelling strategies, are discussed.

Jan 1, 1993

By Collins M. J, Ozberk E

A major advantage of the Sherritt Zinc Pressure Leach Process is the conversion of sulphide sulphur in zinc concentrate to elemental sulphur during pressure leaching. Elemental sulphur can be recovered as a marketable byproduct by flotation of the leach residue, and melting and filtration of the sulphur flotation concentrate. The behaviour and deportment of sulphur during pressure leaching, flotation, and melting and filtration are discussed in this paper using data obtained from the treatment of a wide variety of zinc concentrates in the laboratory miniplant at the Sherritt Research Centre. The quality of the elemental sulphur byproduct and a process for purifying the sulphur are also Presented.

Jan 1, 1993

By Kubo H, Kubita K, Morinara M

A quantitative method for predicting the mechanical properties of zinc alloys is proposed on the basis of the molecular orbital calculation of electronic structures. A new parameter which is the s-orbital energy level, Mk , of alloying elements in zinc was introduced into this method. This Mk parameter correlates with the electronegativity and the atomic radius of elements. The compositional average of this parameter varied linearly with the tensile strength and the hardness of commercial alloys and some alloys developed by Mitsui. This electronic method was very convenient in designing high performance zinc alloys efficiently.

Jan 1, 1993

By M R. Stevens

The Kauri Block (Hauraki Hill) andMatawai Valley epithermal vein systems, near Coromandel township, are hosted by hydrothermally altered Miocene andesites and Mesozoic greywackes of the Coromandel VolcanicZone. The hydrological setting of both geothermal systems was probably that of an andesitic volcanic arc. Two types of veins are recognised: 1. Simple veins composed of fine comb quartz, and 2. Complex (breccia) veins composed of vein fragments of sulphide-bearing, chalcedonic silica cemented by saccharoidal and fine comb quartz.   Pyrite, arsenopyrite, marcasite, and gold form the ore minerals. Both deposits historically exploited hypogene and supergene bonanza gold.   At Hauraki Hill, breccia veins up to 7m wide contain abundant fragments of recrystallised colloform banded-crustiform textured quartz veins ('Golden Cross' style) and were probably major channels for ascending deep mineralising fluids. Alteration assemblages are zoned with the higher elevations of Hauraki Hill-Bunkers Hill characterised by strong kaolinite alteration whereas deeper levels are dominated by illitic clays.   At Matawai, complex veins and hydrothermal breccias pinch and swell, and inflect, within a total width of veining and alteration that exceeds 50 m. The greywacke host rocks are altered to an assemblage of illitesmectite, quartz, chlorite and pyrite although there are pockets of kaolinite.   The proposed genesis of veins and ores in both deposits invokes episodic rapid mixing (quenching) of hot mineralising reservoir fluids with cool acid condensate waters, whilst acidification and increased fO2 triggered gold deposition. These hydrothermal systems heated up during their later stages and at Matawai visible gold was deposited from a late mesothermal stage. The main conclusion is that the northwest CVZ has excellent potential for large gold deposits (= 30 tonnes contained gold).

Jan 1, 1993

By Andrews S. J

Century is a shale hosted zinc, lead, silver deposit developed within gently folded, Proterozoic Lawn Hill Formation shales and siltstones, approximately 250 kilometres north-northwest of Mount Isa, comprising 118 million tonnes of stratiform mineralisation, averaging 10.2 per cent ,,inc, 1.5 per cent lead and 36 grams per tonne silver. The deposit is largely overlain by Cambrian limestone and younger Proterozoic sedimentary rocks, outcropping at only two places. Small discordant lode lead-silver deposits formed the basis of relatively small scale mining activity in the area for almost 100 years, exploration tenement covering the deposit being granted to CRAE exactly 100 years after the first mining leases were pegged in the area in 1887.Stratiform mineralisation occurs within three distinct blocks, bounded by normal faults and the unconformity between Lawn Hill Formation and overlying Cambrian limestones. The Termite Range Fault, a major northwest trending, regional scale fault system occurs adjacent to the northeast deposit boundary, while the Magazine Hill Fault, possibly a component of the east trending Little Range Fault system, forms the southern boundary of the deposit.

Jan 1, 1993

When a major mineral find has been announced the general perception is that a battle between Aborigines and the mining company involved will inevitably occur.It is a fact that many miners in the past have not had a good relationship with Aborigines because of their indifferent attitudes towards them. They saw no common future and went their particular way. However, attitudes have changed significantly since Noonkanbah and both miners and Aborigines are seeking common ground in order to achieve mutual benefits from the establishment of a mine on or near Aboriginal land. There are many obstacles that both miners and Aborigines need to overcome inordertofindthiscommongroundtoachieveawin/win situation. The obstacles can be found in entrenched ideas and practices which need overhauling, not the least of which emanate from government policy and requirements.Without going into specifics, the Noonkanbah incident during the 1970's where Aborigines and their supporters confronted miners who were ordered by the Western Australian governmentto drill on Aboriginal land, polarized Aborigines and miners. Since this incident, many Aborigines, particularly those in the cities, have had the attitude that mining and Aboriginal culture are in direct conflict. Aboriginal opinion is generally shaped in the larger cities through mass media coverage of the opinions of urban Aborigines and their supporters. Through no fault of their own, these Aborigines were removedfromthe land of their ancestors and have notlived atraditional Aboriginal life-style for a number of generations and most have little knowledge of, nor have had involvement in, traditional Aboriginal lore and culture. For the most part these people live in awestern life-style and few still know their language. They generally have high profiles, often giving viewpoints that are wrongly considered "Aboriginal" and supposedly representing all Aborigines. This group is very different with their thought processes and values from those Aborigines who live on their own traditional lands with a traditional life-style, and practise their age old ceremonies. Their tribal values are based in their relationship with the land, expressed through complex religious ceremonial rites of song, dance and legend. Today this group is very much diminished in numbers but nevertheless in the region of the Gulf of Carpentaria there is a high proportion ofpeople who practise their lore, speak their own languages and pass on traditions to their children. It is well documented in the history of Australia that Aborigines have been decimated in numbers and whole tribes have been wiped out. Certainly in this region the experience has been no different.

Jan 1, 1993

A great part of the research on froth flotation of gold ores deals with ores containing gold associated mainly with sulphides, resulting in a largely accepted view that what takes place with sulphides (eg pyrite) in a flotation cell also happens to gold particles. This paper is concerned with the influence of some inorganics (CuSO4, CaO and NaCN) on gold particles flotation, using ethyl or amyl xanthates as collectors. The bench-scale tests were carried out with ground quartz and gold particles mixtures. Some findings stemmed from this study: flotation of the gold particles of size 0.16 mm was efficient adding only frother; larger gold grains were better recovered by the use of stronger collector CuSO4 did not seem to be an activator for gold; the addition of NaCN up to 200 g/t or CaO up to 2000 g/t did not depress the gold grains when amyl xanthate was used as collector although with ethyl xanthate the gold depression was verified.

Jan 1, 1993

By Ryan A, Dennis R, Dekker D, Ellis W, Sowerby B

An automated facility for non-destructive elemental analysis of mine samples has been developed and tested at Mount Isa in association with the CSIRO. The analysis is based on the prompt and delayed measurement of gamma radiation emitted by the sample during and after separate fast and thermal neutron irradiation. No sub-sampling or sample preparation is required and the analyser is operated by one person that would otherwise be splitting drill core in preparation for conventional analysis. The analyser has been calibrated to measure the following (precision in parenthesis): Ag (14 ppm), Pb (0.5 wt%), Zn (0.5 wt%), Cu (0.04 wt%), Fe (0.7 wt%), S (1.1 wt%), SiO2 (0.8 wt%), A1203 (0.07 wt%), Mn (0.05 wt%), specific gravity (0.02 g cmt). Crushed or whole drill core samples that range in size between 0.5 m and 1.8 m of equivalent BQ size drill core can be analysed at a rate of six samples per hour. If required, drill core samples can be re-packed in their original configuration for storage following analysis. Standard samples are measured every day to ensure operational stability. The analyser is controlled by a personal computer which prints the results and stores them along with the raw data on the computer hard disk. This paper reports the performance of the analyser during 1992 for routine analysis of drill core from the lead ore bodies of both Mount Isa and Hilton mines.

Jan 1, 1993

By Tonks E. E

The earliest discovery and mining of coal in the northern area of the Greta Coal Measures at Anvil Creek in 1862 was by William Farthing, however, some official records attribute the discovery to Thomas Frost in 1864. Frost's discovery was examined by William Keen, government examiner of coalfields, and further prospecting was carried out. This was followed by the pioneering work of C S Wilkinson, government geologist in 1884. Subsequently in 1886 C S Wilkinson entrusted a detailed survey of the coalfield to the then geological surveyor, T W Edgeworth David.The outcrop of the Greta Coal Measures around the Lochinvar dome was mapped by Edgeworth David and as soon as he reported his discovery, the Department of Mines reserved in the interests of coal mining an area of 23700 acres, which extended between what became the South Greta and Abermain No I Collieries.

Jan 1, 1993

By King RP, Kientzler P

In recent years, ultrasonic comminution technology has been developed at the Utah Comminution Center. An ultrasonic grinding device was assembled and investigated. An ultrasonic transducer system has been significantly improved by using a special type of piezoelectric ceramic and preloading to 4.1 x le kPa to obtain maximum strength. The improved system provides constant and rapid vibratory promotion of fatigue fracture resulting in more effective breakage. The design principles for an ultrasonic mill are developed in this paper. Size reduction was successfully achieved in the ultrasonic nip-roll device for a variety of materials. Ultrasonic comminution has repeatedly demonstrated the capability of producing fine particles from a variety of materials. A comparison between ultrasonic grinding and dry ball milling of limestone showed that the ultrasonic device produced much narrower size distributions than the ball mill. This trend is especially obvious in the coarse size range where few particles remain, and in the fine size range where overgrinding is prevented. This behavior might have some interesting applications in areas other than mineral processing like powder metallurgy or material science where narrow and controlled product sizes are required for the successful elaboration of high-technology ceramics and glasses. Ultrasonic comminution has a significant advantage in the accurate control of the product size.

Jan 1, 1993