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Discounted cash flow (DCF) methods are well suited and recommended as a primary valuation method for mineral assets for which there are at least indicated resources and some form of feasibility study containing engineering, production and capital and operating cost data. DCF methods are also applicable as a secondary or check valuation method for exploration properties for which no technical study has been prepared. For projects where little or no engineering, production and/or cost data is available, the process of formulating a project concept by specialists who do not possess experience and expertise in the relevant technical faculties is totally rejected as a basis for applying DCF techniques as a primary valuation method. Such an approach runs counter to The Australasian Institute of Mining and Metallurgy (AusIMM) requirement to apply relevant expertise to specific aspects of mineral valuation. Technical and commercial inputs to mineral valuation should be reviewed by specialists who have specific expertise in the relevant disciplines, and should be tempered by the quantity and quality of technical evaluation which has been undertaken and the development status of the asset.

Jan 1, 1994

By Gilbert DJ, Lemon NM

A case history of a two year study of low grade ores in the Middleback Range area with the objective of defining possible areas of interest from a combination of geological- petrological-metallurgical criteria. Covering the general geology of the area and ore types; the results of metallurgical testwork and the pattern of evolution of these tests; the petrological explanation of the results of the testwork; the culmination of the work in the selection of areas of best potential for more intensive work. Jaspilites consisting of magnetite, hematite and limonite with quartz and silicate-carbonate-sulphide minerals are hosts to high grade iron mineralisation but also constitute a large low grade iron Reserve.

Jan 1, 1975

By J Kleynhans, D Vermeulen, V Cogho

A number of rehabilitated open cast coalmines in SA are already decanting. The paper focuses on the situation at one of these mines where the following information exist: monthly decant rates and rainfall; sulfate concentrations of the decanting water; water level measurements inside the mine prior to decanting; ABA analyses; information about the rehabilitation (drainage slope, vegetation, soil used). A 2D-model was constructed for the mine and calibrated against six years of flow data. About 85 per cent of the decant outflow rate comes from direct recharge on top of the rehabilitated mine while the other 15 per cent is derived from lateral groundwater inflows. The estimated recharge value was 17 per cent of the rainfall. Measured sulfate values showed that the sulfate generation rate for the mine was in the order of 7 kg/ha/d. Conclusions from the study are:most of the water decanting from rehabilitated open cast coal mines is derived from recharge via rainfall; given a specific sulfate generation rate, then: the lower the recharge the less the decant rate but the higher the sulfate concentration of the decanting water and vice versa; future prediction of the decant rate must be stochastic according to expected percentile monthly rainfall values; and as a first assessment of the predicted sulfate concentration of decant water from rehabilitated open case mines, the 7 kg/ha/d sulfate generation rate can be used.

Jan 1, 2003

By R Sharpe, M D. Hannington, K Perrin, K Simpson, S Petersen, H Gibson, N Augustin, K Lackschewitz, T Monecke

Semi-massive to massive sulfides were drilled in a shallow-water (630 m) hydrothermal system in an island arc volcanic setting at the Palinuro volcanic complex in the Tyrrhenian Sea,Italy. Overall 12.7 m of sulfide minerlisation were drilled in a sediment-filled depression in a water depth of 630 - 650 m using the lander-type Rockdrill 1 drill rig of the British Geological Survey. The longest drill core recovered consists of 4.9 m of continues semi-massive to massive sulfides + sulfates with abundant late native sulfur overprint. Metal enrichment at the top of the deposit is evident in some cores with polymetallic (Zn, Pb, Sb, As, Ag) sulfides overlying more massive and dense pyritic ore. The massive sulfide mineralisation at the Palinuro volcanic complex contains a number of unusual minerals, including enargitefamatinite, tennantite-tetrahedrite, stibnite, bismuthinite and Ag-sulfosalts, that are not commonly encountered in mid-ocean ridge massive sulfides. In analogy to epithermal deposits forming on land, the occurrence of these minerals and the abundance of native sulfur suggest an intermediate to high sulfidation state for the hydrothermal fluids during deposition, implying that the mineralising fluids were acidic and oxidised rather than near-neutral and reduced as those forming typical base metal-rich massive sulfides along mid-ocean ridges. Oxidised conditions during sulfide deposition are likely related to the presence of magmatic volatiles in the mineralising fluids that were derived from a degassing magma chamber below Palinuro volcanic complex. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.

Jan 1, 2008

By S Miller, R Smart, J Thomas

Single-addition and sequential net acid generation (NAG) experiments were carried out on natural and prepared samples with varying contents of organic matter and pyritic S. Results show that carbonaceous matter can produce significant quantities of organic acids during peroxide oxidation in the NAG test, which leads to overestimation of acid-forming capacity and misclassification of benign samples as potentially acid forming (PAF). Organic matter effects were most pronounced in samples with low S (less than 0.5 per cent) and total organic carbon (TOC) contents of greater than seven per cent. The single-addition NAG test will tend to overestimate acid potential in samples with little or no pyrite and high organic matter content, potentially leading to sample misclassification. High pyritic sulfur samples tend to show little difference in single-addition NAG acidities with increasing organic matter, and it appears that pyrite is preferentially oxidised by peroxide when present in significant concentrations (greater than one per cent pyritic S). In sequential NAG tests overestimation was greatest in samples with little or no pyrite, but highly carbonaceous (>20 per cent TOC) pyritic samples were affected in later stages as the pyrite was depleted. A modified NAG method is proposed to account for the relative proportions of pyrite derived acidity and organic acidity in a given NAG solution.

Jan 1, 2003

By Ritchie I

Copper minerals are often associated with gold ores. These create processing problems since cyanide solutions are not selective for gold alone. Copper minerals are also leached by cyanide, and typically each one per cent of `reactive' copper in the ore consumes about 30 kg t 1 cyanide. Once in solution, copper cyanide species create further processing problems as they adsorb onto carbon along with the dicyanoaurate ion. These problems make conventional cyanidation of gold ore uneconomic if the ore contains too much copper. As a result, methods of economically processing gold-copper ores are becoming of increasing importance.One of the more promising methods of treating these ores is by selective leaching of the gold by an ammoniacal cyanide solution, a method first described by Hunt in 1901. This method is already in commercial use in Mauritania, treating copper/gold tailings. In general terms, the addition of I - 2 g U1 ammonia to a standard cyanide leach solution causes a significant increase in gold extraction and decrease in copper extraction. However, early testwork on this system has concluded that the optimal leach conditions are critically dependent on ore composition, and the mechanism is not well understood, making predictions of best conditions impossible.

Jan 1, 1997

A mining joint venture presents a real management challenge to achieve harmony with the other participants in the successful development and operation of a mine. This can best be facilitated by a detailed agreement and guided by a set of joint venture principles which recognise the differences of the interests of the parties and seek to establish sound business and personal principles by which differences not anticipated in the agreement might be resolved. The major and minor co-venturers can and do present potential difficulties to one another. This paper, one of the pair in the joint venture panel discussion session, predominately presents the minor's viewpoint. Usually commercial matters such as project finance, areas of interest, divestment, pre-emptive rights and decision-making can be adequately covered in the agreement. However, when the parties disagree and have difficulty in resolving their differences, the joint venture principles should be used to advantage to resolve relationship difficulties.

Jan 1, 1997

By K Brown, J Webster-Brown

Coal mining activity first began on the West Coast in 1864 and has since led to the exposure of large areas of coal and host rock to chemical weathering. These exposed abandoned workings have led to the formation of acid mine drainage, which flows into selected rivers and streams impacting on the natural environment. A previous study conducted for the West Coast Regional Council identified four catchments receiving mine drainage which had elevated arsenic concentrations. The aim of this research is to expand on this initial study by determining the spatial distribution and attenuation of the arsenic within the sediment and water column in each stream of concern. Cannel Creek is influenced from drainage from the Bellevue coal mine adit and exhibits a low pH of ~3, elevated sulfate concentrations and high arsenic and iron concentrations in the sediments. This pattern is repeated in the Rapid Stream and Soldiers Creek catchments, which are also affected by adit inflows from the Sullivan and Blackball coal mines respectively. Soldiers Creek also has significantly high arsenic in the waters, with an accompanying pH of ~5.5. Snowy River exhibits a similar trait with a pH also of ~5.5, but with very low sulfate concentrations. Arsenic concentrations in the waters are consistently around 30 ppb, with sediment concentrations up to 900 ppm. These sediment values might be partially attributable to the operation of the Snowy battery gold ore production facility, but the consistently high As concentrations in the water column and in the sediment upstream of the battery have an as yet unconfirmed source.

Jan 1, 2002

On the face of it this is an easily answered question. Modern technology and life as we know it today would be impossible without industrial minerals and the responsible utilisation of mineral resources is essential for the economic wellbeing of the nation. The quarrying industry supplies a high percentage of the industrial minerals used in New Zealand and our role therefore, is to ensure a constant supply of high quality roading and concrete aggregates so that society and the community as a whole can develop. We must do this in a manner which causes the least possible disruption to members of the community, which efficiently utilises all the valuable resources, which causes as little pollution as possible and last but by no means least, creates realistic profit for the operator. It is only by achieving a reasonable profit that we are able to continue in business and therefore play our part in the development of the country. Unfortunately, quarries have a poor image and are not generally popular, as on the whole, they are noisy, dirty and dusty and attract large trucks which create traffic problems. Judging by the amount of restrictive legislation with which we have to comply today, not even government or the local authorities want quarries which presents the industry with some serious problems, some of which will be outlined in this paper.

Jan 1, 1978

Roasting of zinc concentrate at the Risdon Works of the Electrolytic Zinc Company of Australasia Limited, (E.Z.), is carried out in two fluid bed roasters capable of treating 450000 tonne/yr, or sufficient for the output of 220000 tonne of salable zinc. The furnaces were constructed by Lurgi, Australia, to the basic design developed by Vieille Montagne Company of Balen, Belgium. The advantages of fluid bed roasting include a higher metallurgical efficiency in sulphur oxidation from a feed which does not require any pre-grinding, mechanical reliabil- ity through the absence of any moving parts within the furnace and the capability of being scaled up to a large unit.

Jan 1, 1977

By D Sinclair

Sustainability will become a more stringent issue in mine planning over the next 40 years. The evidence of this is apparent in State and Commonwealth government policies now emerging in respect to water, green house gases, waste and other process emissions. The mining industry has developed policies such as æEnduring ValueÆ, which go some way towards establishing a framework within which mining can continue to be an underpinning strength within the Australian economy. However, the demands of new policies are directed at extending sustainability in ways that will change the way in which projects are implemented. This paper examines the nature of new policies aimed at water, energy and emissions, considering examples of where mining practices have or may change in order to meet new objectives in resource efficiency. Important issues will, as always, be the international price competitiveness of the mineral resources being produced but, where this is now devolved around mining and processing costs, these costs may in the future be strongly correlated to the nature and cost of local energy resources compared with those in Australia, the ability to mitigate and minimise water resource use and environmental impacts deriving from emissions and the veracity of competitor nations in meeting the same standards of performance in resource efficiency usage and in emissions control. As these systems bed down internationally mining in Australia will need to concentrate, amongst other things, on finding higher grade orebodies and on better technologies to release the value of lower grade ores. For our mining industry to remain strong, greater expenditure will need to be focused on these objectives. Finally, it will be important for the industry to remain vigilant and proactive in directing government policy development to ensure that practical objectives in mining are not curtailed unnecessarily through ignorance of mining market precepts developed over the centuries of mining operations.

Jan 1, 2008

The nickel refinery at Yabulu consumes an average of 118,000 kg/h of low pressure steam in stripping operations to-recover ammonia and carbon dioxide from product liquor and ore tailings streams. The steam used in the stripping operations is produced from the 25 MW power generation plant at the refinery. The back pressure on the non condensing steam turbines is maintained at 60 kPa.Studies have been carried out to determine the optimum amount of steam required to be generated for stripping operations. When steam production is increased, the product liquor flow from thewashing thickeners can be increased. This results in improved washing efficiency of the thickeners and therefore improves the plant nickel recovery. A computer thickener wash model was used to predict nickel recoveries at varying steam consumption rates.The studies have shown that in most plant situations, it is not economical to-generate more steam than that already available from existing power production.The studies also highlighted the necessity to use all steam generated from power production at all times to maintain maximum nickel recovery.

Jan 1, 1985

Future depth and production limitations of an ore hoisting system are fixed by its initial design criteria. There is little scope to extend these limitations once installation is completed. Depth and production rate upgrades from the initial duty to the hoistÆs practical limitations require capital expenditure in stages, each of which can be defined when assessing the initial system design criteria. A means of presenting and assessing the design criteria, the limiting factors in each option and the relative present and future capital costs is necessary to arrive at a solution that delivers the best value to the mine. Application of this technique to recent friction winder installations and upgrades in the Australian mining industry is of particular interest; however, the analysis methods are also applicable to drum hoists. It is usual to specify a minimum hoisting capacity and depth, based on mine ore handling design and production needs. The final hoist depth and production rate are usually a result of the initial hoist design and hence it is useful from the outset to specify a required production versus depth envelope for the mine. Technical solutions can then be modelled within this envelope at their initial and final duties and a comparative analysis made against the cost of installing and progressively upgrading each solution. Understanding the factors that constrain each solution to a maximum production rate at a given depth is important, as the costs of overcoming limiting parameters such as rope tread pressure and motor power can be significant. The task of understanding and evaluating the options open to the hoisting system designer is simplified using this approach. Communicating the results of a multi-dimensional problem such as hoist specification is also made easier using the graphical methods inherent in the analysis.

Jan 1, 2005

By Kennedy JT

This is a question that will be asked many times and by many individuals during the various evaluation stages of any new project. However, the question itself will often have different connotations to the different groups invariably involved in such an exercise. As examples, consider just three of the several different groups involved in the development of a new mining project - Financiers, Consulting Engineers and the Sponsors of the project (potential borrowers). To the Financiers, a 'bankable project' will be one against which they will be prepared to lend funds (but not necessarily all of the funds requested by the Sponsors). This usually means that in the first instance the technical information presented to the bank has satisfactorily covered all of the requisite areas to the levels of accuracy required. More importantly, the financial evaluation of the projected economic performance of the mine, as a whole, is considered sound and a set of arrangements under which the bank is prepared to advance loan funds have been structured which fully satisfy the bank's credit criteria. To Consulting Engineers preparing a feasibility study (or a part thereof), on behalf of the project Sponsors, the term 'bankable' invariably only refers to the technical completeness and the level of detail contained in the report which they are preparing. Their scope of work will not necessarily have been broad enough to fully satisfy a bank's requirements. It is unusual to see any specific references to overall project viability or profitability in Consulting Engineers' feasibility reports, other than those which are automatically associated with the use of the term 'ore'.

Jan 1, 1990

By C Smith, D Lilly

The Lafarge Marblehead Plant in Marblehead, Ohio, USA produces 4.2 million tonnes of sized aggregate yearly. In 1997, a program was instituted to maximise primary crusher productivity through the optimisation of blasting variables and procedures. A proprietary blasting shot report database and the Lafarge production database was statistically analysed to provide guidance in the program. Blasting powder factor (kg/m3) was the main control variable utilised to increase crusher throughput. In 2005, the program was refined to increase the production of certain high margin aggregate sizes and the reduction of fines. The principal blasting component affecting the percentage of high margin size production appears to be pattern area (burden and spacing area). This can be coupled with powder factor to optimise the production rate of high margin aggregate sizes. The size optimisation program incorporates the blasting shot report database, Lafarge production database, statistical analysis and aggregate sampling. A preliminary indication is that the production of high margin sizes (12.7 mm X 4.8 mm, 24.4 mm X 12.7 mm, and 50 mm X 25.4 mm) has been increased seven to 12 per cent utilising these techniques. As an added benefit, blasting costs have been reduced linearly as burden û spacing pattern areas have increased and powder factors have decreased. The program is ongoing and will investigate other blasting procedures and variables including electronic blasting caps to further increase the production of high margin products. The statistical methods involved in the analysis are described in this article for use in other mines and situations. The methods described can be used to optimise crusher throughput, digging rates and product size.

Jan 1, 2007

In Australian collieries, solutions to the outburst problem must be implemented in a highly competitive environment which has a low tolerance on negative productivity effects. Solutions are only applicable if the overall viability of the operation remains sound. Minimum time must be spent on alleviation and control measures. This is favoured by simple geology, advanced warning and efficient alleviation and control procedures. Research requirements in support of this include 1. an improved means of predicting the nature and location of outburst zones ahead of the face and, 2. an improved means of measuring the effectiveness of gas drainage. For additional safety at the face, a means of continuously monitoring outburst proneness is required. In general, greater emphasis is required on improved instrumentation.

Jan 1, 1987

Welcome to this 13th Congress of The Council of Mining and Metallurgical Institutions. It is twenty one years since The Australasian Institute of Mining and Metallurgy last hosted this congress and it is a privilege and a pleasure for The AusIMM to have that responsibility once more. The theme of this congress "The Twenty-First Century - Mining for Mankind" stimulates many thoughts. The first thought that it generates in me relates to the reference to the 21st Century. We are still 14 years away from it and already consideration of the beginning of the next millenium is becoming something of a cliche. If we feel like that about it now, how will we feel at the 14th Congress of the CMMI in 1990, or the 15th in 1994 or the 16th in 1998? If we do all the crystal ball gazing about the 21st Century this week, those poor devils in the 1990s will in fact have nothing to talk about. Of course that is not the case. This is a very appropriate time for those of us concerned with mining and metallurgy to contemplate the next century. Fourteen years is about the extent of forward planning necessary in the mining business. I sometimes feel that most people do not take seriously the need for long range planning in our industry. Politicians, investment fund managers, and others under severe short-term pressure to perform in our hyperactive world may nod in apparent appreciation of our long term plans but their actions in the interests of expediency often betray-them.

Jan 1, 1986

Fluid inclusions and sulfur isotopic compositions were studied in a possible extension of the Toyoha polymetallic vein deposit. The objective of this work was to gain a better understanding of the ore depositional conditions, sources of ore constituents, and distribution of mineralizing fluid in the region. Fluid inclusions in sphalerite and quartz show that most homogenization temperatures range between 190¦ and 290¦C. Most salinities range from 0.0 to 3.4 wt per cent NaCl equiv. Sulfur isotopic compositions of ore minerals (pyrite, sphalerite and galena), determined by a conventional technique, range between 1.3 and 7.7 per mil. The mineralizing fluids were characterized by relatively low and various temperatures and low to moderate salinities compared to those at the southeast region of the main ore bodies (Izumo and Shinano veins) where rare elements such as tin, tungsten and indium occurred. Obtained temperatures and salinities were attributed to the mixing of hydrothermal fluids with groundwater. Sulfur isotopic data suggest sulfide sulfur was of magmatic origin. Isotopic temperatures, estimated from the isotopic fractionation factor between sphalerite and coexisting galena, are between 195¦ and 322¦C. The temperatures are only consistent with fluid inclusion homogenization temperatures in sphalerite or coexisting quartz when sphalerite was a honey-yellow coarse crystal lacking conspicuous colored growth bands. This suggests the detailed classification of mineral pairs growth textures will be necessary for precise in situ measurements to obtain reasonable eothermometric results.

Jan 1, 2002

The limitations of the conventional practices, and their effects, in prospecting for and in the evaluation of alluvial gold deposits are briefly reviewed. Geophysical prospecting methods have demonstrated their complementary role in the delineation of deposits by reducing the number of boreholes which are primarily of a 'probing' type. Larger diameter boreholes, although more expensive on a linear basis, are much cheaper on a volume recovered basis. The need to have sufficient volume as well as number of samples is stressed. Classical statistical methods are not appropriate for such deposits as there is sufficient structure, or spatial correlation, to require the application of geostatistics. Quite reliable semi-variograms, but not in all cases, of the spherical scheme have been obtained. Subsequent kriging has, to date, been confined to unworked deposits: retrospective estimates to compare to production have not therefore been produced. However, the technique shows promise but indicates a considerably greater borehole density (of the conventional diameter) may be necessary to produce confident estimates. Used in conjunction with larger diameter boreholes, a lesser borehole density may be sufficient, through radical reductions of the sampling error.

Jan 1, 1977

By Wu H. W, Just G. D

Australia's mineral resources boom in the two decades up to 1980 saw the establishment of about 25 new mining towns across the continent Quality housing and a high standard of community services were incorporated to attract a labour force for the major mine or mines i eing serviced. Town construction costs were high and were principally born by the private enterprise mine developer. There has been a change in the pattern in recent years and over 20 new mine developers have adopted a fly-in fly-out arrangement rather than construct new towns. Employees are drawn from a home base which is typically a large city, coastal community or established mining town and flown to the mine site for intensive work periods of about two weeks. The change has occurred for many reasons. Mining companies have been unwilling to support the high construction costs of towns, short life and smallermining operations do not justify a town, fast jet aircraft are available and there is a better perceived family lifestyle in established (coastal) communities. On the other hand reduced permanent development at new mine sites does not assist Australia's perceived need for decentralization. There have been questions as to the social problems which may develop from the artificial separation of the "breadwinner" from his family. The paper reviews a recent survey of the attitude of Australian mining companies employees, governments and unions to fly-in fly-out arrange- ments. The support for this approach is analysed and conclusions drawn that the concept is likely to be with the Australian mining industry for some time in the future.

Jan 1, 1991