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Gold and copper mineralization in the Parkes area is hosted by a meridional sequence of Late Ordovician to Early Silurian igneous and sedimentary rocks on the central northern edge of the exposed Lachlan Fold Belt. The mineralized area straddles two zones separated in part by the Parkes Thrust and exhibiting different styles of deformation and mineralization (Figure 1). The western zone is characterized by gently folded rocks, with shallow dips and weak to non-existent axial plane cleavage. Faulting is restricted to directions oblique to bedding. Numerous occurrences of minor copper mineralization are known, but of recent national importance is the discovery of the Coradgery- Goonumbla porphyry copper-gold deposits by Geopeko Ltd. A resource in excess of 250 million tonnes has been delineated (Jones, 1985), and this represents the first porphyry deposit of sufficient grade and tonnage to be potentially mineable in New South Wales. The eastern zone is much more strongly deformed. Folding is tight with strongly developed axial plane cleavage. Faulting is abundant both parallel and oblique to bedding. Quartz veining is also abundant, and a narrow belt of gold mineralization adjacent to the Parkes Thrust stretches from Forbes in the south, through Parkes and Peak Hill, to Tomingley in the north. Over 31 tonnes of gold have been produced from this gold belt, mostly before 1914, and now three deposits show good potential for redevelopment - Peak Hill, and the London-Victoria and Lachlan lines of lode.

Jan 1, 1987

By Torres F, Cerda I, Gimenez P, Gonzalez G, Castelli L

Slurry density measurement, specially in cyclone feed streams, is fundamental to grinding circuit control. With the purpose of increasing the availability of such a measurement, the design of a soft-sensor in an actual grinding plant is addressed in this paper. The system is designed to substitute the momentary unavailability of the real density sensor, either because it has failed or because it has been removed for any other reason. The ARMAX model structure is determined using the stepwise regression method. Starting with a list of the candidate variables, the method selects, one by one, and in a systematic manner the variables which best model the measurement to be replaced, choosing them from the set of presumably correlated candidate variables. In this paper not only the single measurements are included in the list of candidates, but also combinations of such measurements having physical significance. A phenomenological model has been built with the purpose of determining these combinations. It turned out that in most of the cases the components of combined measurements having physical significance were selected by the stepwise regression method, instead of the single measurements. Actual grinding plant data is used to determine the model structure, to estimate the model parameters and to test the predictive capability of the developed soft-sensors. Good results are shown to be obtained during periods of up to 30 hours of the density soft-sensor operation.

Jan 1, 1995

By R Young

Independent Project Analysis (IPA) is in the business of benchmarking the performance of capital projects on behalf of owner companies in the processing and extractive industries. IPA assesses between 500 and 800 projects each year. The projects are conducted globally and range in size from about $1 million to over $30 billion. Using the data, we are able to benchmark the performance of Australian projects against the rest of the world. This presentation focuses on the performance of large (greater than $100 million) projects that involve chemical or thermal processing.We regularly hear calls for more processing to be conducted in Australia but on the other hand industry leaders are concerned about the poor success rate of solids processing projects in Australia. Data gathered by IPA indicates that there is good reason for the concern. Out of a sample of 31 large processing projects conducted in Australia, 23, or 74 percent, were classed as failures. This performance is significantly worse than for similar projects in other parts of the world. The presentation analyses why the performance is worse and demonstrates that many of the reasons behind the failures were manageable by the project team. Furthermore, members of the project teams on at least half the failed projects knew that the projects were on a path to failure before the project was authorised but could not be heard.The presentation discusses how large projects that involve process design and, in many cases, new technology, need to be set up for success. *This is an abstract only. No paper was prepared for this abstract.*

Aug 8, 2011

By Wagland D. G, Guo H

The Mt Whaleback orebody is in a complex geological regime. A good understanding of geological structure is essential during the design and implementation stages. The amount of information on the rock-mass condition available at the design stage is considerably limited. It is essential to validate the rock-mass properties used in the design during implementation. It is important to achieve integrity of the final pit wall during development and to maintain the integrity until the end of its designed life for safe and economical extraction of ore. The original geological model is updated by way of on-going detailed geological face mapping. Original design is reassessed and is modified based on any significant variations to the previously evaluated geotechnical conditions. Information gathered during design implementation provide tools for effective management of the pit walls. Controlled blasting techniques are employed in the final limits blasting. Presplit blasting is used in most limits blasts. Presplit helps to maintain the integrity of the wall by venting excessive gases from the limits blast. This helps to reduce bedding dilation by gas penetration. Also, it helps to define the design batter for the operators for final batter trimming. Pyritic shale needs special attention during blasting due to its reacting nature. Cablebolting is applied in selective areas to secure small-scale potential instabilities. During the development phase, pit wall monitoring instruments are installed. These instruments are used to monitor the performance of the wall during and after excavation of the slope.

Jan 1, 1995

Amongst the Pacific Rim countries, Papua New Guinea (PNG) is the leader in new gold discoveries and developments leading to new production. PNG has shown a dramatic increase in gold production when taken from a base of about 600 000 ounces in 1984 to 1 160 000 ounces in 1986. 1987 is expected to produce about 1 500 000 ounces and new planned developments will give further large increases. PNG's leading position when compared with neighboring Pacific Rim countries is only partly due to its favorable geological setting along the "Rim of Fire" epithermal zone. More important have been well-thought-out mining development legislation and good administration as well as consistent taxation and royalty policies. A stable political environment and a track record of new mining developments over the last 15 years, both pre and post Independence in 1975, have also been important factors in encouraging the new developments. Early Portuguese explorers associated the New Guinea mainland with gold as early as 1525 but it was not un,11 1R77 that a small ill-fated gold rush gave the first recorded production at Laloki near Port Moresby. Modest but commercial discoveries were made in the outer islands and coastal mainland regions from 1888 to 1926. In 1922 William "Sharkeye" Park found gold at Edie Creek and this led to major discoveries at Wau and Bulolo which were the first large scale commercial gold Operations.

Jan 1, 1987

A BRIEF account of the water-power potentialities of Tasmania is given, together with possible applications of the power commercially. A short history of the Waddamana development is then given, and the main works are described.WATER POWER POTENTIALITIESTasmania is an island of approximately 24,500 sq. miles area (exclusive of small islands). An area of 12,000 sq. miles is at an elevation of over 1000 ft. above sea-level, and of 2300 sq. miles at over 3000 ft. above sea-level. Average annual rainfall varies from' over 140 in. on West Coast to 20 in. on East Coast, and for the whole island averages 48.5 in. The total water-power available, based on conservative figures for run off and efficiency, is 6,000,000 b.h.p. Only a small percentage of this total will, under present conditions, and under likely conditions in the immediate future, be capable of being developed commercially.An extensive hydro-metric and water-power survey is at present being carried out in order to collect information concerning the most promising water-power schemes. Already 400,000 b.h.p. has been located in different proposals, and there is still a large area of very likely country along the West Coast which has not been investigated yet. Tasmania thus has very vast power potentialities, which, combined with good ports and communications and wonderful mineral and timber resources, should augur well for the establishment of the great key industries, particularly chemical and metallurgical.

Jan 1, 1923

THIS SYMPOSIUM ON AUSTRALIAN BEACH SANDS IS MOST TIMELY; WHEN WE ARE APPROACHING PEAK PRODUCTION FROM THESE RESOURCES AND WHEN PRICES ARE GOOD, BUT THE RESOURCES CAN BE SEEN TO BE COMING TO AN END IN THE LIFETIME OF OUR YOUNGER COLLEAGUES - 20 TO 25 YEARS AS WE HEARD FROM ROY TOWNER TODAY. THE SPREAD OF PAPERS HAS BEEN 15 PERCENT EACH ON GEOLOGY AND THE MINERAL RESOURCES, WITH 25 PERCENT ON LAND USE AND ENVIRONMENTAL PROBLEMS. I AM PLEASED TO SEE 20 PERCENT HAS BEEN ON TREATMENT PROCESSES AND 25 PERCENT HAS BEEN CONCERNED WITH DOWNSTREAM USES. I SUSPECT THESE RATIOS ARE DUE IN PART TO THE WAY PAPERS WERE CALLED FOR, BUT THEY ALSO SUMMARISE CLOSELY THE BALANCE OF INTERESTS IN THE INDUSTRY. NOTE AGAIN; 30% CONCERNED WITH SUSTAIN -ING RESOURCES, BUT 25% WATCHING LAND USE AND IMPOSING CONTROLS; 20 % IMPROVING THE PRESENT PROCESSING, AND A HEALTHY 25% WITH AN INTEREST" IN WHAT HAPPENS TO THE MINERAL CONCENTRATES. I SHALL RETURN TO THIS FOURTH POINT AT THE END OF MY REMARKS. THE POSSIBILITY OF ADDITIONAL HEAVY MINERAL SANDS IN NEW AREAS WAS HINTED AT BY M.S. SHEPHERD (EG TERTIARY SHORELINES OF THE MURRAY BASIN). OLD FOSSIL SHORELINES, WELL REMOVED FROM PRESENT SHORES ARE AN IMPORTANT MINERAL SOURCE IN CHINA AND IT WOULD HAVE BEEN INTERESTING TO HEAR FROM THE SEVERAL COMPANIES EXPLORING IN THE MURRAY BASIN. I ALSO NOTICED THAT WHILST OUR MONAZITE

Jan 1, 1986

Pipe Jacking has been a recognised method of tunnelling in the U.K. since the early 1950's, although I understand that pipes were pushed blind by the soldiers in the first World War from trenches on the Allied side to, or adjacent to, trenches on the German side, thus allowing explosives to be used with a certain element of surprise! 'However, on its more conventional to the U.K. in the 1950's, Pipe Jacking made considerable inroads into the tunnelling market place as an alternative to timber supported headings. This success was, unfortunately, fairly short lived because, owing to its simple method of operation, contractors paid insufficient detail to the engineering (or surveying) aspects and as such the system soon had a bad reputation for unreliability and lack of accuracy. Due to these failings, the market was not exploited and, therefore, there was a lack of investment by contractors, pipe manufacturers and also by any client, or research organisation, which is client associated. The effect of this meant that the system stagnated for a number of years and was used generally only for short crossing work (i.e. railways, canals and motorways), and then only in good homogeneous ground. Albeit, a limited number of full scale sewage disposal contracts were carried out, but with the lack of knowledge and experience of the clients, contractors and suppliers, (particularly the pipe suppliers), no reasonable success, either physical or financial, was achieved on any such contract.

Jan 1, 1987

Transport technology has produced social changes since the invention of the wheel five millenna ago when man was freed from the need to expend large amounts of energy to move goods and people. Further impetus came with the Industrial Revolution when mechanical power producing devices were applied to land and-water transport. This leap, together with the application to air transport has caused enormous social changes in our way of life. The state of technological advancement of transport modes has dictated to a large degree the develop- ment of Australia and Papua New Guinea. It is suggested that we should not make advances for technology's sake but examine the real needs of the users of transport and ensure that the un- necessary costs are not incurred. The transporting techniques for the ore, waste and slurries used by Bougainville Copper in Papua New Guinea are, in general, quite conven- tional but the scale of operations and the location has modified some modes. in particular the soft' overburden and concentrates were slurried for trans- port and the lack of experience in humid climates restricted the choice of the mine haulage truck. The near future of the transport. industry is seen as an expansion in equipment sizes but the suggestion is made that we need to examine more than the economic and technical aspects; it is necessary for the social con- sequences of our actions to bear examination by outside opinion

Jan 1, 1973

By Miles M. J, Sandy D. A

It has long been known that drilling and blasting operations have a direct influence over productivity and costs of subsequent operations. If mine management is to effectively optimise blasting operations, good information is required on the operating costs of each of the affected operations, together with knowledge of how they are influenced by blasting. In practice it is not possible to do enough repeats of a full scale production blasting experiment to make a statistically significant analysis of the results. By monitoring each blast and subsequent operations in as much detail as possible, enough data will be available to effectively measure the effect of blasting on costs. This gives management an insight into the blast performance and is the first step towards optimisation. An Integrated Blast-related Cost Reporting System has been developed at the Rossing Mine Open Pit, which calculates the total mining cost for each blast. In assessing the total mining cost for each blast, use was made of an.integrated planning and management information system to collect relevant production variables, current operating costs and survey data. An automatic image analysis system was employed to measure the fragmentation of the blasted material in the back of haul trucks. A shovel monitoring system is also under development for use in assessing the muckpile diggability and, in conjunction with an appraisal of shovel component reliability, to estimate the maintenance cost under various digging conditions.

Jan 1, 1990

By A Grigg, L Hackett

Alcoa operates two bauxite mines at Huntly and Willowdale, located within the jarrah forest south-east of Perth in Western Australia. Ore reserves are shallow but extensive, and mining pits averaging around 20 ha in size are distributed across a mining region in a mosaic pattern, linked to a centrally-located crusher by a radiating network of haulroads. A mining or crusher region is defined partly in terms of economic haul distances, and new regions are opened once the current regions’ reserves have been mined. Since commencing in 1973, the Huntly mine has constructed and progressively closed three previous mining regions and is presently in a transition from the fourth and current region of McCoy to the new region of Myara. At present rates of production, approximately 450 ha is cleared, mined and rehabilitated each year.The value of topsoil in returning a diverse mix of native jarrah forest plant species and supplying nutrients, organic matter and soil biota to rehabilitated areas has long been recognised. Managing the topsoil resource is therefore a critical element in the success of rehabilitation outcomes, but the distribution and dynamic nature of mining operations pose significant planning and logistical challenges. The regionalised approach to mining at Huntly also presents a range of issues for what are, in effect, soil management plans for episodic mine closure. The nature of mining and rehabilitation operations are described, together with the planning processes that Alcoa follows to quantify, track and report on soil movement. A case study of the Huntly mine demonstrates that an integrated operational and life-of-mine planning process is essential for successful and cost-effective mine rehabilitation.CITATION:Hackett, L and Grigg, A, 2014. Topsoil management for long-term mine operation and closure – a case study from Alcoa's bauxite mining operations in south-west Australia, in Proceedings Life-of-Mine 2014 , pp 609–614 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By M.J. Mitchell

Platinum-group minerals (PGM) are recorded from a number of localities along the Waiau River, western Southland, and the south coast of the South Island, New Zealand. At each locality, small amounts of PGMs were recovered as by-products of historical gold mining operations. During the period 1890-1950 an estimated 1000-2000 oz. of "platinum" were recovered from the region, the only area within New Zealand where PGM have been commercially exploited. The PGM suite of southern New Zealand consists of Pt-Fe alloys, IPGE (iridium subgroup, platinum-group elements) alloys, sperrylite (PtAs2), cooperite (PtS)and braggite ((Pt,Pd)S). The composition of Pt-Fe alloy exhibits considerable variation and two compositional populations are recognised. Some Pt-Fe alloy grains are chemically zoned. Iridium is the most abundant IPGE alloy phase and often contains considerable Pt, in contrast to osmium and ruthenium alloys. Cooperite and braggite grains are characterised by extremely low concentrations of Ni. R^~

Jan 1, 1995

Parallel lenticular orebodies occurring at the C.S.A. mine of Cobar Mines Pty. Ltd. are mined by mechanized cut and fill stoping over the full strike length. Access is provided for each stope lift from an inclined drive adjacent to the orebody. Mobile drill jumbos mounting hydraulically-operated booms are used for drilling upholes which are subsequently charged with ANFO explosive.Close control of drilling has been found essential for good back conditions and to ensure optimum fragmentation.Broken ore is transported from the face to the main ore pass by rubber-tyred, diesel-powered, load-haul-dump units. Initially, the units trammed ore to the main pass via the incline drive. As the stopes advanced and the lead distances increased, stope passes were developed in the wall rock and raised concurrently with each stoping lift. The passes terminate in drawpoints and production loaders are used to transport ore from the drawpoints to the main ore pass system.Two parallel ore pass systems have been developed to cater for both copper and copper-zinc ores. These systems terminate above a 48 in. by 60 in. jaw crusher. The crushed ore is conveyed to a traversing rock box and thence to one of two crushed ore bins adjacent to the main hoisting shaft. A loading station conveyor is interlocked with the winder to provide automatic ore hoisting.All phases of ore handling have been mechanized as completely as possible. Results to date indicate this policy has been vindicated but highlight the need for tight operating control and close liaison between operating and maintenance personnel.

Jan 1, 1969

By R-H Yoon

Increasing the upper particle size limit of flotation would allow operators to increase mill throughput, save operating costs, simplify flow sheets, and increase rate of return. However, coarse particle flotation is difficult for various reasons, of which bubble-particle detachment has been identified as the major limiting factor. In the present work, the process of bubble-particle detachment has been studied by directly measuring the forces required to detach air bubbles from hydrophobic solids. The measurements were conducted using a hanging balance apparatus. The measured forces were converted to detachment energies that can be compared with the work of adhesion, which in turn is a function of hydrophobicity, surface tension and contact area. The results were converted to detachment energies using the Young-Laplace equation for capillarity. In the present work, the solid surfaces were hydrophobised by coating them with octadecyltrichlorosilane and cetyltrimethylammonium bromide. The results show that bubble-particle detachment occurs in two steps. In the first step, air bubbles are deformed, while the three-phase contact (TPC) line is pinned, until contact angle reaches advancing angle. In the second step, the TPC line moves along the surface until solid/air interface is replaced by solid-liquid interface. In general, the energies of detachment measured in the second step are in good agreement with calculated work of adhesion. Thus, the energy required during the first step effectively represents an energy barrier for bubble-particle detachment. It has been found that the energy barrier varies with surface roughness and surface tension. The results of the present investigation suggest, therefore, that coarse particle flotation can be improved by control of particle hydrophobicity, surface roughness, and surface tension.

Jan 1, 2005

By H Bartosiewi, M Kuruppu, F Mashiri

Wire ropes are one of the most heavily used components in a dragline. They are subjected to harsh conditions during the regular usage of a dragline in a mining operation. Hoist ropes are subjected to fatigue due to the cyclic nature of load handling as well as due to rope bending over the sheaves and the drum under load. This leads to wire breaks due to fatigue. Accumulation of a number of wire breaks close to each other can have a detrimental effect on the rope. Furthermore, to allow for the increasing demand for higher load capacity coupled with the inconvenience of having very large ropes, the factor of safety is often compromised, which increases the wear rate. Drag ropes are also subjected to heavy loads. More importantly, they are allowed to drag along the rough mine surface subjecting them to external physical abrasion. This makes the life of drag ropes one of the lowest among those used in a dragline. Suspension and IBS ropes are relatively uniformly loaded during their regular usage although they need to withstand dynamic load cycles as well as bending. Hence they tend to last for a number of years on average. The paper analyses the wear types and their severity of each of these rope applications, and suggests methods to determine rope wear rates and the resulting rope life. The paper further gives suggestions for good operating and maintenance practice that can extend the rope life and help reduce the large expenditure associated with every major rope change in a dragline.

Jan 1, 2005

Geological hazards such as faulting, basement ridges, and zones of "thin" (

Jan 1, 1998

By C G. Ryan, D R. Cooke

The Thames gold-silver deposits are part of the Hauraki goldfield, situated within the Miocene to Pliocene calc-alkaline Coromandel Volcanic Zone (CVZ). The Waitangi vein system is one of the mineralised ore shoots in the Thames district. The Thames gold deposits are characterised by shallow-level epithermal vein mineralisation with phyllic to advanced argillic alteration assemblages and abundant sulphide minerals including pyrite, arsenopyrite, chalcopyrite, galena and sphalerite. Gold occurs as electrum in association with sulphide minerals. Sulphur isotope analyses of mixed sphalerite-galena and sphalerite-galena-chalcopyrite samples yield a narrow range of δ34 SCDT values (-1.0 to 0.9 ë; n=5), whereas late spongy pyrite gives unusually light sulphur isotope values (-16.7 to -27.9 ë; n=4). Vein quartz from the mineralised zone at Waitangi yields δ18OSMOW values from 6.8 to 12.7 ë (n=23). Fluid inclusion studies indicate a homogenisation temperature range of 190¦ - 296¦C and salinity range of 0.2 - 3.0 wt per cent NaCl equivalent. Similar temperature and salinity ranges have been recorded for the other gold deposits in the Coromandel Peninsula. PIXE (Proton Induced X-ray Emission) analysis revealed that the Waitangi ore fluids have 1090 - 2700 ppm K (average 1600), 145 - 205 ppm Ca (average 180), 80 - 100 ppm Mn (average 90), and 80 - 200 ppm Fe (average 120) but no detectable Cu, Zn, Br, Rb, Sr, Pb and Bi (only one fluid inclusion contains 28 ppm Zn). The sulphur isotopic values of base metal sulphides from Waitangi suggest that the sulphur was derived from a magmatic source (either directly, or by leaching of igneous sulphides). The calculated oxygen isotopic composition of ore fluids is between -2.1 to 3.8 ë at 250¦C and -0.1 - 5.8 ë at 300¦C. Oxygen isotope analyses have revealed significant variations in δ18O values with elevation and gold grades. Zones of gold enrichment coincide with a zone of variable oxygen isotope values at the top of the vein system, where boiling and/or fluid mixing most likely occurred. Mixing of ore fluids with convective ground water is a likely mechanism for gold deposition in a shallow environment for the Waitangi vein system and there is also lack of fluid inclusion evidence (eg liquid-rich and vapour-rich inclusions in the same growth zone) for boiling of ore fluids. Oxygen isotope values varying with gold grades within the Waitangi conduits suggest that δ18O values may be useful in targeting bonanza grade gold mineralisation in epithermal vein systems.

Jan 1, 1999

This paper is based on studies made intermittently from 1937 to 1950. Its object is to describe the surface geology and the tin lodes, and to relate the lodes to the structure of the field.PREVIOUS REFERENCESR L. Jack made his first report on the field in 1880, but his principal report was made in 1883. W. E. Cameron described the Great Northern lodes in 1904. Numerous later reports on various mines were made by L. C. Ball, J. H. Reid and C. C. Morton, the most important of which were on the Black King, Good Friday, St. Patrick and the Great Northern Gully Shaft.GENERAL GEOLOGYJensen maps the Herberton area as part of a granite massif intruding rocks of two ages, the Younger Metamorphics of Silurian-Devonian age, and the Older Metamorphics of Older Palaeozoic age. The distinction is apparently based on lithological data. The Older Metamorphic rocks occur as inliers in the granite massif to the west and east of Herberton (Fig. 1).The area described consists of granite traversed by numerous dykes. West of the area, approaching the Older Metamorphic rocks, the granite becomes finer grained as if chilled towards its contact, and the dykes more numerous. To the east, passing from the Nova Scotia mine to Mount Lavery there are numerous dyke rocks, but the outcrops are poor and knowledge of the geology indefinite. The area is the main tin-producing area. To the west there are comparatively small tin lodes in the granite, and the "Copper Firing Line" occurs in the Older Metamorphic...

Jan 1, 1951

By B Menzel, M Wlasenko, J Phillips

Yandicoogina (Yandi) open pit mine is located in the eastern part of the Pilbara region of Western Australia. It hosts pisolitic iron-oxide mineralisation distributed within a meandering paleoriver channel. The deposit is characterised by clays occurring as lenses, accretions, desiccation joint infill and voids in the pisolite ore. The irregular shapes and highly erratic distribution of these clay pods represent a serious challenge for grade control at this mine.The current grade control approach used at the Yandi mine is based on sampling of production blastholes on a 6 m X 6 m spacing. Their good spatial coverage, tight spacing and low cost make blastholes a very convenient media for grade control and ore-waste definition. However the potential downside of this grade control approach is poor sample representivity. An alternative grade control approach is to drill and sample using reverse circulation (RC) holes distributed on a 25 m X 25 m grid. This approach has been tested in Yandi mine and compared with the blasthole sampling approach for sample representivity. The impact of increased drill spacing on mining block predictions has been studied using a conditional simulation technique. Blasthole and RC samples proved to be similarly biased, underestimating Al2O3 and SiO2 grades and overestimating Fe grades, when compared to full cone assays. These results show that using RC drilling for grade control at the Yandi open pit will not necessarily improve the representivity of the grade control samples. However, increasing the grade control spacing to 25 m X 25 m will lead to more than 12 per cent of the selective mining unit (SMU) sized blocks being misclassified. This is approximately a two-fold increase in the number of misclassified SMU blocks in comparison with 5 m X 5 m spacing.

Jan 1, 2007

By J Araya, O Leiva

The mine evaluation process, composed of the designing, planning and valuation of a mine project, is, among other variables, based on an estimated orebody model. However, as the information from the drill holes is limited, it is impossible to know with certainty the mineral content in each block within the estimated block model. Consequently, uncertainty about the value of metal grades, or other geological attributes, arises because of the lack of information at unsampled locations. This is one of the reasons why, in any mine operation, there will always exist a divergence between estimated and real values. Cut-off grade optimisation is the process used to determine the operating mining strategy (long-term production scheduling) that will maximise the total profit value (normally referred as the net present value (NPV)) of a mine operation. This is done by defining a dynamic cut-off grade policy which is constrained by the production capacity of the mining, mill and refining.Real options is a type of contract, written on real assets such as mining, oil and other natural resource industries, that gives you the right but not the obligation to exercise the contract. It is based on operational and managerial flexibility, which allow mine decision makers to react to either good or bad operational and economic events in the future. But, what do geostatistics and cut-off grade optimisation have to do with the application of real options in a mine project evaluation process? The objective of this paper is to answer the previous question by showing how geostatistics combined with cut-off grade optimisation are key tools for corporate/managerial decision makers, which allow them not only to analyse the resource/reserves of their projects, but also to generate operational strategies that can maximise project value by minimising the downside risk due to ore tonnes and grade uncertainties, while achieving operational and physical constraints such as mining and processing capacities. A real copper grade open pit mine project is used as a case study.

Sep 26, 2011