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By J Ranford, A Harris, K Laughton

The Angas Zinc Mine (Angas) is a poly-metallic, underground mine in the Adelaide Hills that has been developed through arguably one of the most volatile financial time periods in living memory. From boom times during the commencement of the project, the global financial crisis (GFC) through the stabilisation of the operating period and then a subdued capital market for the period where mine life extension was targeted, the financial environment has always presented a different set of challenges. Indeed even the Underground Operators’ Conferences that have been held across the span of the project allude to these changes: ‘Boom and Beyond’, Launceston (2008); ‘Safe, Innovative and Sustainable’, Canberra (2011) and ‘Managing the Margin’ in Adelaide (2014).Angas gives a rare opportunity to see the entire life-of-mine of a project and its economic performance within a relatively short time frame. Angas, owned and operated by Terramin Australia Ltd (Terramin), will have undergone resource estimation drill out, feasibility study, permitting, commissioning, operating and completion and rehabilitation all within a period of approximately ten years. A number of sensitivities of the project were tested, particularly in the bankable feasibility study (BFS) stage and the aim of this paper is to identify the factors that impacted the operations profitability the most, whether they were identified preproduction or not. The key sensitivities assessed in the BFS were typical of similar studies, including operating costs, metal recoveries, capital costs, zinc prices, lead prices and exchange rates. The manner in which these sensitivities presented themselves in real life were not as anticipated and modelled in the feasibility study and were also heavily impacted by technical challenges.CITATION:Harris, A, Laughton, K and Ranford, J, 2014. Feasibility to mine completion – the real impacts on project economics, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 99–110 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

The B.R.G.M., through international experience gained over many years, has become very skilled in alluvial prospection, particularly for diamonds. The research laboratories within the B.R.G.M. have also been active in creating new mineral processing equipment,. some of which is directly applicable to such prospection. One such development, the mobile prospection unit, is described and -its application in mineral exploration is demonstrated by a consider- ation of the diamond search in Australia and the general exploration of the Massif Armoricain (France). Because this latter study was fundamental in the development of the concept of "mineral-geochemistry", and its application in mineral exploration, it is also briefly described.

Jan 1, 1980

By U JSger

The Westerschelde tunnel will be the first permanent road link between the Dutch regions of South Beveland and South Flanders. Two tunnel tubes, each 6.6 km long, will be driven using the shield tunnelling method. The difficult ground conditions and a water pressure of up to 6.5 bar make great demands on the design. This paper describes the problems and their solutions.

Jan 1, 1999

Broken Hill South Limited's discovery of phosphate deposits in the northwest of Queensland in 1966 prompted intensive exploration which has proved phosphate rock in excess of 2,000 million tons at ten separate deposits. Systematic exploration for phosphate in Australia was initiated by the Company in 1964. Early in 1966, an investigation of oil wells in the Georgina Basin in the Northern Territory and Queensland revealed widespread anomalous phosphate in early Middle Cambrian Beetle Creek Formation and Thorntonia Lime- stone. Phosphorites recognised in oil wells in the southeastern part of the Basin, Queensland, led to the discovery of the Duchess deposits, Exploration of the Beetle Creek Formation since 1966 has disclosed nine other sizeable deposits north of Duchess around the eastern margin of the Basin. The Lady Annie and the adjoining Lady Jane deposits, by reason of their location, 160 miles south of the Gulf of Carpentaria, are expected to be the first to be brought into production. Beneficiation testing and engineering investigations commenced in 1967. Transport between the deposits and various port sites in the Gulf of Carpentaria has been extensively studied and a slurry pipeline as a means of transport to a deep water island port, is now being investigated.

Jan 1, 1971

By Remilton D, Raston GR

The low price of nickel which has prevailed since 1982 has dictated that unit production costs must be minimised. Early in the crisis, a decision was made within Western Mining Corporation to reduce unit costs by increased rates of production, not by a significant reduction in manpower. This paper details developments which have taken place at Kalgoorlie Nickel Smelter to enable the higher production rates to be achieved, or to increase energy efficiency. It is significant that most developments were achieved without the need for capital expenditure.

Jan 1, 1985

By Jankowski P

The Bannockburn gold deposit is located 67 km north-west of Leonora in a poorly exposed part of the Norseman-Wiluna belt of Western Australia. The deposit consists of narrow, complexly shaped orebodies which have presented a challenge to find successful grade control and mining methods. The deposit also presents an opportunity to examine in detail the geology of this part of the Norseman-Wiluna belt.This paper discusses the geology and structure of the Bannockburn gold deposit as well as the grade control and mining systems developed to define the ore and extract it with minimum dilution. We discuss the different techniques employed for grade control in the past and their shortcomings, and the evolution of the present system of doing grade control in cross section from blast hole assays.

Jan 1, 1993

By Parker C. J, Mikula P. A

The excavation for the Sydney Opera House Parking Station comprises a large donut shaped underground cavern with a central sandstone pillar. The maximum effective roof span is about 19 m and the rock cover is between 7 m and 8 m. Permanent support for the roof and the various services tunnels consists of a combination of tensioned anchors, and untensioned dowels, and mesh with shortcrete and fibrecrete as the final lining. Steel sets were installed at main intersections.Fundamental to the design philosophy for excavation of these spans at such shallow rock cover was the use of monitoring to check on the adequacy of the installed support. Prior to excavation, extensometers, inclinometers, piezometers and surface settlement survey stations were installed. Underground survey stations, anchor load cells and shotcrete pressure cells were installed as excavation proceeded. Excavation commenced at the crown using an initial heading and three widening stages. Geological mapping during excavation confirmed borehole expectations, namely sandstone beds 1 to 4 m thick interbedded with thin shale units. Bedding plane contacts varied over short distances from tight partings to thick brecciated seams. Jointing was subvertical and joints tended to be bed-limited.

Jan 1, 1993

When the new No. 3 Shaft is in full operation, the main hoisting duties will be in connection with the raising of: (a) ore from the various mining operations, and (b) mullock, or broken country rock, from development work in extending access to existing levels, opening up new levels, exploratory work, or sinking the shaft to greater depths.

Jan 1, 1957

By Schoning W. L

Ore deposit models form the basis for numerous other economic decisions in the mining process. The success of these economic decisions therefore depend directly on the accuracy of the ore evaluation process. The Geology Department at the Sishen Iron Ore Mine is responsible for the generation of a reliable geological computer model of the rock material with predicted grades. This information is then utilised for further ore reserve calculations, mine planning, production scheduling and grade control. Owing to a very complex geological orebody, grades and beneficiation characteristics differ significantly from sample to sample. This means that ore evaluation is a difficult process and great reliance is placed on computer techniques. In 1993, preparation for the ISO 9002 quality certification of the mine motivated the Geology Department to hold formal `problem solving' sessions in order to identify and revise problem areas in operating

Jan 1, 1995

By Musa MA

Tunnel excavation for sewer construction long remained a labour intensive, hazardous and costly operation. Even with the of mechanical and semi-mechanical shields for tunnel excavation, many problems remained until recently. In the past decade, however, the technology has changed dramatically which has made possible the use of advanced tunnelling methods for sewer construction.

Jan 1, 1993

The discovery of copper and nickel sulphides in the Riwaka Complex in 1967 led to considerable exploration activity by a number of companies. Various exploration techniques used by these companies are summarised and discussed. Activity of these companies shows that mineralisation is mainly confined to the southern, ultramafic section of the Riwaka Complex where geological mapping recognised sixteen units within, or associated with the Riwaka Complex. Significant pyrrhotite, pentlandite chalcopyrite mineralisation is restricted to biotite feldspar pyroxenites and to clinopyroxenite units. Lesser and more erratically distributed pyrite chalcopyrite pyrrhotite mineralisation occurs in poikilitic pyroxene hornblendites, melanocratic gabbros, and in marginal diorite lenses. It is suggested that a linear belt of layered ultramafic and mafic rocks described in Fiordland by Williams (1974) may be a southern extension of the Riwaka Complex. The Riwaka Complex has been classified as belonging to the Picritic subtype, (Tholeiitic suite), of Naldrett and Cabri, (1976), and as such it is concluded that it exhibits substantial potential for the discovery of economic copper and nickel deposits. It is considered that the complex is a multiphase differentiated intrusion emplaced in a major tensional fracture zone that developed in a relatively stable tectonic environment, namely a succession of middle Paleozoic shallow water shelf sediments. Based on sparse available evidence it is suggested that the Riwaka Complex was intruded in the lower to middle Permian. It is further suggested that the tensional fracturing was initiated by the onset of subduction process which were responsible for the development of the Permian volcanic arcs and ophiolite belt in the north west Nelson area.

Jan 1, 1977

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

Close spatial relationships between the deposits of the Etheridge Goldfield (23,000 kg of bullion) and various regional geological and geophysical features suggest that genesis of the ore deposits was a multi-stage process that started with magmatic and metamorphic stages in the mid-Proterozoic, climaxed with structural and hydrothermal stages in the late Palaeozoic and terminated with an oxidation enrichment stage in the Cainozoic. Acceptance of this hypothesis permits classification of the Georgetown region into areas likely to contain deposits of the Etheridge type and those unlikely to do so. Consequently there is little scop- for the discovery of extensions of this field. However, the stratigraphic interval between the source rocks of the Etheridge field and stratigraphically higher host rocks of the Croydon field may contain disseminated replacement gold deposits of the Carlin type. The potential host (pyritic carbonaceous, and locally dolomitic siltstone of the Candlow Formation) is locally faulted and cut by granitoids and the extension of a mineralised, long-standing zone of structural weakness.

Jan 1, 1980

By Schneider CL

The calculation of the liberation spectrum in the product from continuous milling operations is a problem of considerable importance, and it is difficult to solve because the population balance equation must be integrated in two-dimensional space. Complete solutions require a very detailed knowledge of the complex interactions between the fracture patterns and the mineralogical ore texture when brittle particles are subject to impact fracture. Most of the liberation models that have been developed to date apply only to batch comminution processes and under these conditions the liberation problem can be studied in isolation. When the comminution is continuous and forms a unit operation in a flowsheet that includes classification and separation operations, the situation is very different, and then the liberation of the minerals must be described when single particles of known mineralogical composition are fractured. Important industrial examples are conventional milling circuits closed by hydrocyclone and regrind mills in flotation plants. This paper presents an efficient computational algorithm for the calculation of the liberation spectrum produced by continuous milling operations. The algorithm relies heavily on the detailed internal structure of the Andrews-Mika diagram. The modifications that are required to make this diagram apply to practical ore minerals, and the internal structure of this diagram can be established using single-particle fracture on mono-size, mono-grade material but suitable liberation models are essential to interpret the data in terms of the cross transfer coefficients required for the population balance procedure. Models proposed by Leroux (1992) and King (1990) are compared to experimental data.

Jan 1, 1993

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

This paper describes preliminary research on the application of Markov Decision Processes (MDP) to Real Option Valuation (ROV) and the optimisation of mine scheduling. The MDP framework is a novel approach to option valuation and scheduling in mining operations. A learning agent is introduced into the valuation process of an open pit, where prices and block ore grades have probabilistic values. The prices are modelled using a mean reverting diffusion process and the block grades using sequential Gaussian simulation. The agent is asked to learn which production parameters should be used in order to maximise the overall value of the project. The introduction of the agent permits a real option approach to mine valuation, such that the value associated with the robustness of a design to uncertainty can be measured. A simulated example is used in which there are ten blocks to be extracted under conditions of grade and price uncertainty. Using policy iteration, an optimal policy is generated and the value of production options is found. The potential financial gains from applying MDPs to mine valuation and optimisation are substantial and warrant further investigation.

Jan 1, 2007

By Mitchell D. S

BackgroundIn March 1990 Pasminco resolved to replace and increase the capacity of the underground pumping system at the Southern Operations, Broken Hill. The existing pump station was built 23 years ago while the rising main had been in service for 38 years and was subject to frequent failure.The old system was a conventional slurry/clear water separation and multi-stage pumping system. It was inadequate in the following areas:ò insufficient capacity to handle current and expected future flows;ò unable to consistently dewater lower production areas; ò pumping capacity restricted sandfilling rates;ò dirty water dams had insufficient settling capacity and were difficult to de-sludge;ò the operating costs of dewatering were high; ò it was labour intensive; andò it did not offer enough protection to the 25 level loading station.

Jan 1, 1993

INDEX OF CONTENTSComposition of the Brown CoalsIntroductionComposition as minedComposition from drilling explorations:Latrobe Valley Area, East Gippsland, Welshpool-Alberton West Area, Altona-Bacchus Marsh Area, Lal Lal Area, Dean's Marsh Area. The Coal Constituents:Vitrain, fusain, detrital coal, resin, Sulphur, types, distribution, Ash, composition, sulphur, phosphorus, chlorine,,titanium, vanadium, distribution in seam, fusibility, source, mineral ash, chemical ash Bitumen, tar. Factors causing Variation in Composition:Pressure of overburden, moisture content, carbon, hydrogen, nitrogen, oxygen, calorific power, density, compression by warping, abnormal moisture, initial differences in vegetation, conditions of sedimentation, weathering before re-burial.Summary and AcknowledgmentsList of References

Jan 1, 1945

The need for ventilation around mine workings derives from the various gases found in mine atmospheres and CH4, the principal diluent is in quantity depending upon several factors. Several of these are seam thickness, depth of cover and working method and the French Regulations typify controls on coal mine ventilation. There are many factors affecting production of CH4, in addition to coal production, such as the geological setting of the working seam, the geometry of workings and the rates of advance. The possibilities of spontaneous combustion should not be overlooked. The complexity of high production modern colliery layouts is such that sometimes there maybe 200 airway branches. There are specific differences in ventilation networks between the mining methods of rooms and pillars, shortwalls and longwalls as affecting resistance losses, as well as necessary airflows and ventilating

Jan 1, 1983

In the general planning of this area, provision was made for the distribution over the whole area as required of the following services:(a) Power and lighting from the substation distribution boards 'located in the winder house.(b) Miscellaneous electrical indicating, control and signalling systems.(c) Telephone lines from the main internal automatic exchange located in the changehouse, the town exchange to the automatic exchange and also direct lines from the town exchange to selected offices.(d) Compressed air from the incoming 16-in. air main. (e) Water, both unfiltered and filtered; and the disposal of the following effluents:(f) Sewage from the area to the town sewage system.(g) Changehouse shower water to the regeneration area.(h) Storm water to the general mine surface drainage system leading out to the naturally drained area north of the No. 8 Shaft.

Jan 1, 1957