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By Y Xie, L O’Connor, S C. Dominy

"Sheeted vein gold deposits are characterised by multiple subparallel veins and free milling gold. In situ heterogeneity of mineralisation results in grade and process parameter variability, which will increase project risk. Measured variability is often enhanced by poorly designed sampling and test work protocols. Protocols that are optimised within the framework of the theory of sampling to suit the ore type, together with quality assurance/quality control systems, will reduce variability and provide fit-for-purpose results. The geometallurgical approach requires spatially distributed samples within a deposit to support variability modelling. Diverse attributes from core logging, mineralogical/textural determination and small-scale tests are used to measure variability. This contribution emphasises early stage geometallurgical intervention during project development. It presents a discussion of representative sampling in the context of the theory of sampling. A case study presents a protocol that exemplifies how data can be gained from a well-designed and planned program to support a resource estimate and prefeasibility study.CITATION:Dominy, S C, O’Connor, L and Xie, Y, 2016. Sampling and Test Work Protocol Development for Geometallurgical Characterisation of a Sheeted Vein Gold Deposit, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 97–112 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By H J. Stedman

A Transient Electromagnetic (TEM) geophysical survey was trialled in Bowen Basin Permian coal measures overprinted by Cretaceous intrusion. The trial’s intention was to compare whether TEM could assess residual coal more accurately and economically than drilling.TEM results were promising but had limitations. TEM did not compare to drilling for defining coal thickness or relative level definition. However, TEM resolved conductive anomalies laterally; providing a qualitative picture of remnant coal.Three material types and associated conductivities occur within the trial area: overburden (sandstone/siltstone), intrusive sills and heat affected coal.Ground conductivity was analysed by measuring decay of residual current within the TEM loop. Fast decay related to resistive overburden and intrusion, attenuated decay related to conductive coal.Generally speaking, carbon content governs coal resistivity where good quality, low ash, bright coal is more resistive relative to dull, high ash coal. Though in the trial area, relative to intrusion and overburden, coal was found to be the most conductive of the three materials.By modelling conductive anomalies, a general picture emerged of remnant coal regions. Subsequent highwall exposure reconciled with conductive TEM anomalies.CITATION:Stedman, H J, 2017. Findings from a transient electromagnetic trial for heat-affected coal, in Proceedings Tenth International Mining Geology Conference 2017, pp 233–238 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By M Grigorescu, J H. Hodgkinson

The expansive, open cut iron-ore mines in Western Australia typically experience few days of rain per annum, often amounting to less than 250 mm. Unlike mines where rainfall is frequent, they may be less prepared for extreme rainfall events. Such events can cause erosion, flooding and sedimentation, drainage alteration, spoil and stock heaps wetting and effect slope stability. Such impacts may threaten personnel safety, infrastructure, and production. The CRATER (‘Climate Related Adaptation from Terrain Evaluation Results’) framework collates and interprets a mine’s pre-existing data and semi-quantitative information to assess vulnerability to, and ultimately plan to avoid or minimise, flood-related hazard to infrastructure, people, downtime, environment and revenue. Outputs assist decision makers to design investment strategies for minimising mining operations’ vulnerability to climate. Previously developed for smaller, wetter mines in Queensland’s coal region, the outputs provide a hot-spot map, fault tree analysis and an assessment of the mine’s capacity to adapt. The multicriteria evaluation (MCE) within a geographic information system (GIS), equally suits iron-ore mines’ siteconditions (elevation, slope, drainage, soil and vegetation) to identify critical inundation areas. Hotspot results provide target zones for in-depth fault-tree analysis that, in turn, present a range of sitespecific adaptation options. Rainfall-intensity and the number of rain days since the 1970s have increased over central and eastern parts of the Pilbara Region. While tropical cyclones may become less frequent, they are projected to increase in intensity. Although some parts of the Hamersley Ranges receive more than 500 mm per annum, rainfall in the Pilbara is generally very low. Therefore, experience of the impacts of extreme rainfall events in the constantly changing topography of Western Australia’s iron ore region may be sparse. Minimising potential effects can be proactively assisted using CRATER.

Nov 8, 2021

As this is the first occasion I have had, and probably will be the only opportunity I shall have, of addressing such a large gathering of members and of student members of the Institute, I desire to- express my very deep appreciation of the honour 'you have paid me in electing me to the office of President for the current year. I realise also that such selection is a tribute to the Company which controls operations here, the centre selected for the annual meeting, but nevertheless there is afforded to the recipient a great deal of pride and of pleasure to hold the highest office in what is, in my opinion, undoubtedly the most important engineering society in Australasia.The past year has witnessed an unprecedented and unparalleled event in the history of the British Empire, and I think that we must all feel a wonderful sense of proud patriotism; the whole world was forced to admire the public calm and the dignity which accompanied the change in our Sovereign Ruler, and great tribute is due to the statesmanship of the Prime Minister, Mr. Baldwin. At this time, we should, I think, place on record our prayer, in common with all his people, that His Majesty, King George the Sixth, may enjoy a long and prosperous reign.The meeting at Port Pirie recalls one who did so much for the advancement of mining and metallurgy, especially in Australia. I refer to the late Mr. Delprat, who, as General Manager of The Broken Hill Proprietary Company Limited, had under his control for many years the smeltery in this centre. As you are aware, he had been elected an honorary member of this Institute, as well as of our sister Institutes in England and in America...

Jan 1, 1937

By A Madera, R Watt

The Tampakan deposit is a strongly telescoped high-sulphidation-epithermal/ porphyry deposit pair which is hosted by a sequence of probable Pliocene age subaerial andesite flows. These host units lie on the western flank of a deeply dissected andesitic stratovolcano within the northernmost portion of the Sangihe Arc in southern Mindanao. The deposit was discovered by WMC geologists in 1992 and is currently undergoing resource evaluation. Preliminary resource estimations indicate a total inferred metal content of 12 million tonnes of copper metal and 16 million ounces of gold. Using a 0.2 per cent Cu cut-off grade, the deposit has a current mineral resource of approximately 2.5 billion tonnes with an estimated grade of 0.48 per cent copper. At a higher cut-off grade of 0.5 per cent Cu, the mineral resource is approximately 900 million tonnes with an estimated grade of 0.75 per cent copper. Mineralisation is open both to the west and at depth. The Tampakan district is centrally located with respect to a 100 km wide zone of left-lateral strike-slip deformation represented by the trans-Mindanao Cotabato Fault Zone. The district is transected by several WNW-striking wrench faults which represent strands of the regional Cotabato Fault Zone. High-sulphidation epithermal mineralisation within the Tampakan deposit is strongly controlled by NNE-trending faults which lie along a dilational orientation within the Pliocene stress field associated with the Cotabato strike-slip fault zone. The mineralisation is broadly hosted by a gently-dipping, tabular zone of partial to massive silicification which displays multi-phase brecciation, acid-leaching, related vuggy porosity and which is developed within a district-scale advanced-argillic and argillic lithocap exceeding 90 km 2 in area. High-sulphidation epithermal mineralisation is associated with a silica-pyrophyllite-dickite-alunite-diaspore¦sericite alteration assemblage which is transitional downward to sericite-chlorite alteration and relict potassic biotite-chlorite-magnetite-anhydrite alteration associated with pervasively developed but weakly mineralised porphyry quartz stockwork veins. The high-sulphidation mineralisation is dominated by disseminated, vein and vug-filling enargite-bornite-digenite-chalcocite-covellite ¦ molybdenite which has overprinted an earlier phase of porphyry copper stockwork veins associated with high-level porphyritic hornblende diorite stocks. The distribution of high-sulphidation alteration and mineralisation reflects strong stratigraphic and structural controls. The high-sulphidation mineralisation covers a surface area of approximately 1.6 km by 2.0 km and forms a tabular, flat-lying to gently-dipping body between 200 and 500 metres thick. It is intersected at RL-1200 m ASL (at surface) in the northern portion of the deposit and extends down to RL-600 m ASL at the southern end. The deposit has been diamond-drill tested to a depth of 400 - 500 metres where low-grade chalcopyrite-bornite-pyrite mineralisation is hosted by pervasive quartz stockwork veins. This deep-level mineralisation represents the outer portion of a porphyry Cu system hosted by both andesite flows and the uppermost portions of high-level hornblende diorite stocks. Deep drilling to test for higher tenor porphyry Cu mineralisation is planned.

Jan 1, 1999

By G S. B Karunatillake

Following a pre-feasibility study, Mount Isa Mines commenced a feasibility study on the deposit of the George Fisher Mine in May 1997. Board approval was granted in May 1998 to construct a 2.5 million tonne per annum mine and to upgrade existing concentrator and smelter facilities. The world-class George Fisher zinc-lead-silver deposit is located approximately 22 kilometres north of the city of Mount Isa, in north-west Queensland and is 2.6 kilometres north of the existing Hilton Mine. It will be a large-scale underground mine, sustaining a profitable zinc-lead-silver business in Mount Isa for at least ten years. This paper will outline the details of the mine that was developed during the feasibility and design phase. It will include a description of the mining methods, ventilation, fill, ore handling, services and infrastructure. The utilisation of existing assets and the development of innovative ideas were essential to the successful economic development of the George Fisher Mine.

Jan 1, 2000

By A Hall, D Kratochvil, P Littlejohn

Economic recovery of gold from complex gold ores, including poly-metallic deposits, is impacted by the presence of cyanide-soluble base metals. These base metals can create both a metallurgical challenge plus waste handling and disposal challenges. Base metals such as Cu and Zn compete for the cyanide reagent and often increase the total cyanide consumption to the point of making precious metals recovery uneconomic. In addition, the accumulation of base metals in cyanide solutions represent a challenge for cyanide detoxification and waste water treatment as these metals report to waste sludge. Such sludge requires safe handling and disposal, with possible long-term liabilities.Base metal interference can be removed with sulfidisation-acidification-recycling-thickening (SART) process technology. SART liberates the base metal from the cyanide complex and precipitates the metal as an insoluble sulfide product that can be recovered as a commercial grade concentrate. With the base metal precipitated, the cyanide can be regenerated as free cyanide and recycled to the gold extraction circuit.BioteQ completed laboratory testing for two projects, one employing cyanide leaching of copper-gold sulfide flotation concentrate and one employing a Merrill Crowe process, to determine the effectiveness of SART to remove and recover Cu and Zn in high-grade sulfide concentrates and to reduce the impact of cyanide-soluble metals on gold recovery and cyanide consumption. This paper will provide an overview of the testing methodology and results along with a review of the potential for SART to be applied to complex gold ores with poly-metallic deposits to improve project economics, operability and waste management.CITATION:Littlejohn, P, Kratochvil, D and Hall, A, 2013. Sulfidisation-acidification-recycling-thickening (SART) for complex gold ores, in Proceedings World Gold 2013 , pp 149-156 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

A process was developed, on a laboratory scale, for the removal of iron oxides from Weipa pisolitic bauxite. The technique involves the chemical reduction ofthe iron oxides by carbon, followed by selective removal of the iron species by acid leaching or chlorination.To remove more than 90 per cent of the iron it is necessary to reduce the iron oxides substantially to iron metal by heating the bauxite, pre-calcined at 650-800°C, with reactive carbon at 1040-1100°C. Reduction proceeds via the intermediate formation of hercynite (FeO.Al2O3) and difficulties have been encountered in reducing hercynite formed under less favourable reduction conditions.Following reduction, efficient selective removal of iron species is readily effected by acid leaching using dilute hydrochloric acid at 100°C, or chlorination at 500-750°C using Cl2, Cl2/N2, or Cl2/N2/CO mixtures.After removal of unreacted carbon, the final products contain 0·5-1.0 per cent Fe203 and 87-92 per cent Al203.

Jan 1, 1971

Longhole open stoping was introduced in the zinc-rich 'B' lode at New Broken Hill Consolidated Limited (NBHC) during 1968. Since then one longitud- inal and a series of transverse longhole open stopes have been developed. The longholes are drilled using Gardner Denver airtrac drilling jumbos and the broken ore is loaded from drawpoints and transported to chutes using Wagner ST5 scoop- trams. The holes were drilled from sill stopes 160 ft apart. The width of an emptied transverse longhole stope was successfully widened by blasting rings of blastholes drilled parallel to the stope wall. Proposed stope and pillar designs for a series of transverse longhole open stopes were assessed using a method of finite element analysis, applied to a longitudinal section through the area. Blastholes have been surveyed for dip and bearing using an Eastman borehole survey camera. The data produced has provided the basis of a study of blast- hole deviation. Deviation of boreholes is considered to be the major cause of the formation of benches in longhole stopes.

Jan 1, 1971

Despite the large areas of sedimentary basins in Western Australia, the coal resources are very meagre., This is a serious problem for the State, which-at present-lacks any other alternate source of fuel-for power production.. Located coal deposits are all poor in quality and mostly brown coals of little importance. The best..coal suitable for extraction is at Collie, where a black=sub- bituminous non-coking coal is mined. Most other coals recorded are low grade or lignite, with high ash'and moisture content and a low calorific value. Coal was first discovered in Western Australia in the bed of the Irwin River, 50-miles south-east of Geraldton, by the Gregory brothers, explorers, in the year 18+6,. but although investigated, it has never been developed. The most noteworthy discovery of coal was in the Collie River, 26 miles east of Bunbury, by Arthur Perrin in 1883. Production commenced in 1898 and ever since, Collie has continued to be the State's sole producing coalfield.

Jan 1, 1964

The Fosterville Goldmine in Victoria employs bacterial oxidation (BIOX« Process) to liberate gold from its flotation concentrate. Gold occurrence is primarily as submicron particles in pyrite and arsenopyrite and has been described as being in æsolid solutionÆ and therefore not amenable to direct cyanidation even with fine grinding. Once liberated by the oxidation process, the gold is then available for cyanide leaching. While the oxidation process is very effective, it has been found that a portion of the liberated gold can become suspended in the liquid phase in what appears to be a colloidal state. This liquid becomes a waste stream during washing of the oxidised solids and the suspended gold is therefore lost. This paper discusses investigations into the causes of the loss and also describes the successful use of quebracho tannin in reducing colloidal gold loss. Laboratory and subsequent plant trials, showed a gain of 2.6 per cent in overall gold recovery based on mill feed and waste stream data.

Jan 1, 2009

This paper on the relation of Granite and Sedimentary Contacts to Victorian Mining will, it is hoped, be of interest to members of the Institute.The broad fact that gold often occurs' at or near the junction of granite with sedimentary silurian or metamorphic rocks has been noted by some Victorian geologists, miners, and prospectors; but the fuq practical value -of the fact does not seem to have been fully realised by prospectors. Glancing at the Geological" Map of Victoria, one can see that many of our goldfields 'are situated at or near the junction of granite with Palceozoic sedimentary formations, and that some of our alluvial fields are on granite. Many prospectors are possessed of this knowledge but when prospecting a contact locality, they would be just as likely to confine their search for auriferous matrices to spots a quarter of a mile on the sedimentary side, as on the actual contact line of two formations.

The cost of preparing a feasibility study is notoriously difficult to estimate. Studies for mining projects are typically commenced when an exploration programme has identified a mineable resource and pre-feasibility studies have shown that development of the resource would lead to an economically viable project. Pre-feasibility studies will normally include an estimate of the cost of a formal feasibility study and this estimate would then be firmed up before a commitment is made to proceed with the formal study. Data for preparing the feasibility study cost estimate will be sketchy, geological investigations, metallurgical testwork, and marketing studies may be needed before the scope of the project and hence the scope of the formal study can be finally determined. Before an estimate of the work required and hence of the cost of the feasibility study can be prepared the source of project funds must be decided. Studies for internally funded projects are often less rigorous than those which must be "bankable" and subject to the scrutiny of external financial institutions. This paper sets out suggestions for preparing more accurate cost estimates for feasibility studies by ensuring that all activities are included and shows how a staged approach to preparing such studies can minimise costs and guard against cost overruns. It also provides a case study showing how the estimate compared with actual costs for a recent feasibility study completed by Pancontinental Mining Limited.

Jan 1, 1990

By A T. Yuniar, C A. Brannon, N D. Pascoe, H H. Firdausi

This paper describes the key components of the Grasberg Block Cave (GBC) mine design and the development and construction status of the mine. Drawpoint production from GBC will be initiated in 2018 following the closure of the Grasberg open pit. Full production of 160 000 t/d is planned for 2024, which will make it a 20-year time period between initial access development in 2004 and full production.Diluted ore reserves are about 1 Bt at a grade of 1.0 per cent Cu and 0.78 g/t Au. The mine plans some 2400 drawpoints on a 20 m × 30 m drawbell spacing in a 700 000 m2 footprint using the El Teniente layout. The drawpoint opening sequence includes five production blocks, the first two of which are scheduled to be undercut simultaneously in 2018. Ore is transported using diesel-powered load-haul-dumps to a series of orepasses and then delivered via loading chutes to a rail haulage system, which delivers the ore to a three gyratory crusher complex. Crushed ore is transported to the mill stockpiles via dual inclined conveyors.Development and construction of the substantial fixed facilities are now well underway. Primary access for personnel and materials is via the 6 km Ali Boediardjo (AB) adits. A service shaft will hoist personnel and materials from the AB adits level to the various operating levels. Shaft commissioning is scheduled for late 2015. The rail haulage system installation and construction is in progress and is due to be commissioned in 2017, which is timed to coincide with the commissioning of the ore handling system. Ventilation is provided through a series of large intake and exhaust drifts, and two of the four main fans have been commissioned. A 1600 L/s pumping system will manage drainage from the mine.Other key facilities include separate shops for rail and rubber-tired equipment, warehousing, a powder magazine, a main control centre and an underground concrete batch plant.CITATION:Brannon, C A, Firdausi, H H, Pascoe, N D and Yuniar, A T, 2016. Development and construction update of the Grasberg block cave mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 625–634 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By N Dube, K L. Sandvik, C Mutevhe

Trojan Nickel Mine is the largest producer of Ni, Cu and Co in Zimbabwe. The mine has operated a nickel flotation concentrator and base metal refinery continuously since 1969, creating 28 million tonnes of sulfide bearing tailings, five million tonnes of permanent waste rock and about seven million tonnes of smelter slag. Exposure of the sulfide bearing minerals renders them susceptible to oxidation in the presence of water and oxygen, resulting in acidic solutions with elevated concentrations of total dissolved solids, sulfate, metals and residual flotation chemicals in various waters draining from the mine site. These pollutants pose a direct threat to the environment and human health, and understanding their deportment and behaviour in the various waste streams is essential in the mineÆs environmental objectives to prevent or minimise adverse impacts arising from its operations. A geochemical assessment of the pollutants was carried out to compute a mass balance between the major sources of pollution and the distribution and fate of pollutants in waste streams from the mine site. Waste rock, tailings, surface water, ground water and sediments were sampled, tested and analysed. Mineral composition and water chemistry data show that geochemical reactions are responsible for the release of pollutants from waste rock, tailings and plant spills. Drainage from the mine area is near neutral due to buffering by magnesium carbonates in the fine fraction of the tailings. The natural wetlands that exist downstream of the waste rock and tailings dams are effective in reducing metal loadings to water courses. However, solutes and heavy metals are occasionally released to surface and ground water, when their concentrations peak during the dry season. The results demonstrate the necessity to understand the natural chemical processes that characterise the distribution of pollutants in nature and how such knowledge can be used to develop cost effective methods to remediate pollution in the natural environment.

Jan 1, 2006

By A C. Robertson

World urban expansion puts constraints on the available land surface area of our major cities both for accommodating people as well as providing infrastructure and services whilst at the same time attempting to preserve the remaining natural environment. Whilst consideration is often given to underground planning for private and public transport infrastructure, the author is of the opinion that the current lack of underground planning of our cities that are suitable for underground development will have major long implications when finally the need for underground space planning is critical and ultimately recognised. This paper identifies the need for our city planners to integrate surface planning and underground planning as a ‘total planning solution’ where the city plan incorporates the elements of underground space planning as identified in this paper. Investigations by the author reveal that there are very few cities in the world that actually incorporate underground space planning in their city plans. The author uses the City of Brisbane as a case study for the potential introduction of underground space planning as part of the city plan. Despite efforts by the author to include the planning concept of underground commercial development in the latest Brisbane City Plan 2014 as well as four underground space workshops in Brisbane over the past 20 year through the Australasian Tunnelling Society (ATS), underground space planning for the City of Brisbane, apart from infrastructure projects, is not considered of significance to the City of Brisbane.CITATION:Robertson, A C, 2014. Commercial underground space – planned development for the future, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 513–518 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

I am very pleased to be here at this seminar on carbon-in-pulp (CIP) technology for the extraction of gold as I am always interested to hear about any new development in any aspect of gold ore processing. We can expect to learn a great deal from the papers to be presented over the next few days. It is not my purpose to give a detailed description of the CIP process nor to give a complete historical review. However, in this opening address it was thought appropriate that I should mention some historical features and some technical factors to set the scene for subsequent papers. HISTORICAL NOTE Table 1 shows some interesting dates of the use of carbon in gold metallurgy in Australia. Mount Morgan used carbon after chlorination TABLE I Carbon precipitation in Australia 1891 Mount Morgan 1917 Yuanmi mine (Edmunds) 1934 Sons of Gwalia (Edquist) 1975-1980 Various pilot plants and small companies 1980- Various large and small plants

Jan 1, 1982

By F Carrick, W A. Ellis, D R. Mulligan, S I. FitzGibbon

"One of the major environmental impacts of mining is the destruction of habitat. The koala (Phascolarctos cinereus) is an iconic Australian marsupial that has been severely affected by land clearing and its decline is continuing. This has placed pressure upon mining companies and government agencies to ensure koalas are managed throughout the life-of-mines - from land clearing through to rehabilitation of post-mining landscapes. This paper reports on the æKoala VentureÆ research partnership between The University of Queensland and Rio Tinto. As part of the Koala Venture program we examined koala use of two types of restored environments: rehabilitated mined land (20 sites) natural regrowth forests (six sites), at Blair Athol Coal Mine in Central Queensland, Australia. Searches for koala scats revealed evidence of koalas in ten per cent of rehabilitated sites (2/20) and 33 per cent of natural regrowth sites (2/6). Two factors were identified as being of greatest importance in facilitating koala recolonisation of restored habitats. Firstly, all recolonised sites were located close to native forest occupied by koalas (mean 135 m ¦ 52). Proximity to source animals is considered crucial to recolonisation of suitably restored habitats. Secondly, three of the four recolonised sites were dominated by koala food trees, most of which were large enough to be utilised by koalas. Availability of suitably abundant food resources is, therefore, also considered crucial. The requirement for these two factors, in combination, is highlighted by the absence of koalas at several sites that contained abundant food trees, but that were distal to areas with source animals, and vice-versa.Our research demonstrates the enormous potential for restoration of wildlife habitat on post-mining lands, even for species with specific requirements such as the koala. Consideration of the ecological requirements of wildlife during rehabilitation planning is critical to enhancing the likelihood of recolonisation.CITATION:FitzGibbon, S I, Ellis, W A, Mulligan, D R and Carrick, F, 2012. Rehabilitating post-mining landscapes for wildlife - A case study from the Koala Venture research program in Central Queensland, in Proceedings Life-of-Mine 2012, pp 319-324 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 10, 2012

A broker relies heavily on mineral valuations and independent experts' reports to provide the fundamental information, both technical and commercial, which provides the basis of estimating the sharemarket value of securities and underlying assets. It is important to appreciate the significant variance that can occur between the market value and other types of valuation at a particular point in time. In general, most experts' reports and valuations seek to provide estimates of technical/fundamental or ""fair"" value which correspond to the Corporations Law and accounting standards requirements. They do not usually attempt to estimate (stock) market values and it is usually and quite correctly the broker's task to estimate market values on the basis of a technical appraisal and consideration of all other commercial, market and financial influences. Therefore ideally, an independent experts' report or information memorandum will include material relating to commercial and management aspects of a company as well as detailed technical reviews and fundamental valuations. Wherever sensible cash flow projections can be made, cash flow-derived valuations, usually based on discounted cash flow (DCF) calculations, remain the preferred valuation methodology. Brokers in general would not argue with this preference. However, there is a paucity of examples of valuations where alternative methods are applied as a check on the reasonableness of a DCF-based estimate.

Jan 1, 1994

By C Moorhead

The classification of Mineral Resource estimates for reporting in accordance with the JORC Code is a statement of the Competent PersonÆs confidence in the estimate and an attempt to convey that confidence to the various users of the resource estimate. In general the classification process is either largely subjective, relying on the Competent PersonÆs experience, or relies on statistical measures derived from the estimation process. These statistical measures may not necessarily relate to the overall confidence in the resource which must also take account of the confidence in the geological inputs to the estimation. Several authors, including Jackson et al (2003) and Dominy, Noppe and Annels (2004), have addressed methods of including consideration of geological data and its reliability into the classification process. Henry and Parker (2005) have discussed a quantitative measure for classification of Measured and Indicated Resources related to mine production parcels. These methods rely on the availability of sufficient information for the application of geostatistics, data evaluation techniques or repeated interpretation of data to provide an indication of confidence. They are suitable for very advanced projects. In 2005, using a modification of the financial audit æcontrol and quality criteriaÆ principles, then widely accepted within Newcrest Mining Limited (Newcrest), the principal author developed a scheme which categorised the classified resources into æcontrolÆ and æqualityÆ (or risk) categories. Control covers all aspects of the data collection, the geological interpretation, the data analysis and the modelling of tonnage and grade; it is also influenced by the documentation of the estimate. The quality criteria are a subjective measure of risk associated with the estimation of the resource and refer to the risk that the tonnage and grade are not realised and the consequences if decisions are made on the basis of these estimates. By evaluating the generally accepted level of risk attributed to these quality ratings by Competent Persons within Newcrest, a graphical representation of the confidence in the resource ounces was prepared for communication of the expected confidence in the resource statement.

Jan 1, 2009