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By Alan E. Renshaw

"This paper is a practical overview of ways to reduce cost in the design and operation of an Arctic mine. The economically important issues of the Arctic mine that will be addressed include: permafrost and the active zone in general terms; road building in and over permafrost; Arctic geotechnical mine design considerations; pit dewatering techniques in sub-zero temperatures; and blasting frozen materials with techniques to obtain optimal results. A final section on a few special topics conclude this paper.Although this paper primarily refers to near surface conditions more closely associated to an Arctic surface mine, many of the ideas and techniques contained in the paper also apply to the surface construction of an Arctic underground mine."

Jan 1, 1996

By Denis Labrie

Le minage en profondeur sous contrainte modérée à élevée présente de nombreux défis aux opérateurs et aux ingénieurs de mine notamment au niveau du contrôle de terrain et de l?environnement minier souterrain, pour assurer la sécurité des travailleurs sous terre et la continuité du cycle d?opération. Des conditions de contrainte élevée signifient une pression accrue au front de taille et sur les structures minières tels les piliers de mine et les fins de zone, un risque de rupture violente ou de coup de toit plus élevé, des zones de rupture plus grandes au pourtour des excavations, des charges accrues sur le support de terrain, etc. Le présent article fournit un aperçu du travail fait à l?intérieur du Programme de Contrôle de terrain de CANMET au cours des sept (7) dernières années, entre 1995 et 2001, pour comprendre et suivre l?évolution des niveaux de contrainte à l?intérieur des structures minières. Les propriétés déterminées en laboratoire sur des échantillons rocheux et les prévisions effectuées au moment de la conception sont comparées avec les observations effectuées en chantier à la paroi des excavations et à l?intérieur de la masse rocheuse. La plupart des cas discutés ici montrent une corrélation satisfaisante entre les observations effectuées en chantier d?une part, et les résultats d?essai obtenus en laboratoire et les calculs réalisés lors de la conception d?autre part. Ces observations peuvent donc être considérées comme des moyens relativement sûrs pour vérifier et suivre l?évolution des niveaux de contrainte présents à l?intérieur des structures minières.

May 1, 2002

By R. J. MacLeod

"INTRODUCTIONThe removal of water or liquid from slurries and solutions is a procedure generally present in many process industries. This has prompted the development of many mechanical and thermal devices with which, I have no doubt you are al1 familiar.In the mining industry, beneficiation of ores necessitates ' the removal of water or other 1iquid from the concentrate material. The most common method of accomplishing this is by means of thickeners, vacuum filters and rotary dryers, generally all three and in that order;The use of spray drying techniques to obtain the same end has many advantages and these will be outlined here.THE PRINCIPLE OF SPRAY DRYINGA Spray Dryer consists of a cyclone shaped chamber where hot air and atomized concentrate are introduced in the upper section. (Sec figure No. 1). Efficient mixing of these two streams produce dry concentrate and moist spent air, both of which are removed from the base of the chamber.Thermal dewatering involves the product ion of heat and spray drying has no special requirements in this area. Generally a direct fired air heater is used and the products of combustion whether they stem from the use of gas, oil or coal fuel go into the spray dryer along with quench or dilution air which is used to reduce the combustion gases to the desired temperature. This generally lies in the range of 1,000 to 1,600° F. In spite of these relatively high inlet temperatures, the spray drying process eliminates the need for refractory lining or indeed any special heat resistant metals except on the air inlet ducting. Waste heat may also be used even if a significant amount of contamination is present."

Jan 1, 1972

By C. M. Davidson, D. J. Drexler

"Sulphuric acid treated with hydrogen peroxide to destroy organic contaminants could conceivably show increased corrosivity toward carbon steel shipping and storage vessels, caused by the persistence of a peroxide residual. This paper describes work performed to determine the effect of 0-200ppm hydrogen peroxide on the corrosion of carbon steel by 93% and 98% sulphuric acid at room temperature (23ºC) and 50ºC.Steel electrodes were exposed to acid containing several peroxide levels (0. 45, iOO and 200 ppm) for up to two weeks. Specimens were removed at intervals and weight loss, open circuit potential, depth of metal loss and residual peroxide concentration recorded.Hydrogen peroxide decomposes considerably over two weeks in iron-contaminated sulphuric acid. initial peroxide concentrations > l00 ppm suppress corrosion, but the effect is lost when concentration decays below about 60 ppm. Sustained peroxide levels in the range below 60 ppm may increase corrosion rates. These phenomena are interpreted by analogy with anodic passivation."

Jan 1, 1987

By B. Goard

"IntroductionCemented backfill has been placed underground in slurry form in Inco Limited's Ontario Division mines since the early 196Os. The slurry was traditionally mixed on surface at between 65 and 70 wt% solids* and transported underground via gravity through a borehole-pipeline distribution system. This method of placement, while simple and dependable, has proven to be costly because of the large amounts of transport water involved.A significant quantity of the slimes buildup on mine levels is caused by the backfill water carrying cement and other fine material out of the stopes. The level cleanup and eventual pumping or hoisting of the slimes and water back to surface result in substantial indirect backfilling costs.The cement that remains in the stope is always overhydrated because of the high water cement ratios that exist. As a consequence, high concentrations of Portland cement must be added to the backfill to produce the fill strengths required for the different mining methods.Pouring backfill at these densities also demands extensive fill preparatory work in the stopes to withstand the hydraulic heads created by the slurried fill. This, along with the delays in pouring necessary to allow for water drainage, result in significant losses in productivity.These negative aspects of slurry placed fill has led Inco Limited to investigate several methods of transporting backfill underground via pipeline, at higher densities (i.e. 75 to 95 wt.% solids). Three separate transport methods are presently being experimented with by the Company's Mines Research Department. Each utilizes a different technique or form of flow transport, i.e. concrete pumping technology, high density slurry flow, and pneumatic conveying."

Jan 1, 1987

By E. L. C. Martins, M. J. Nicol, D. Majuste, A. D. Souza

The effects of organic compounds on the current efficiency (CE), morphology, crystal structure and mechanical properties of the metal deposited during the electrowinning of zinc are described. A flotation collector and lubricating oil were selected based on observations made during the industrial production of zinc from silicate ores, in Brazil. The analysis by Fourier transform infrared spectroscopy of these compounds, which may be present in minor amounts in the electrolyte solution, indicated the presence of a polar amine group in the collector, while the lubricating oil is a non-polar compound. The average CE value obtained from organic-free industrial solution was 91.15 ± 0.26 %. The CE dropped to 54.35 ± 0.73 % in the presence of 100 mg·L-1 of collector in the solution, and a negative effect was also observed in the presence of similar amounts of oil (88.84 ± 0.61 %). The characterization of the deposits by scanning electron microscopy and X-ray diffraction revealed the formation of pores in deposits obtained from solutions containing the oil, while a different growth pattern (perpendicular zinc platelets) was identified when the flotation collector was added to the industrial solution. In the presence of these contaminants in the solution, guided-bend tests revealed that the deposits have a higher resistance to deformation, but lower ductility, properties that may affect the performance of the stripping stage. As a result of this work, simple control and optimization actions were applied in the industrial plant, which resulted in important improvements in the electrowinning process.

Jan 1, 2014

By Markus Timusk

This paper describes a research project that focuses on developing a diagnostic routine to assist in decision support for the condition based maintenance of mobile mining equipment subject to unsteady duty. The objective is to develop a general method for initial identification of mechanical faults in machinery operating under non-steady state conditions. The platform to be used for the experimental development and validation of the system is the swing machinery in an electric mining shovel operating in an open pit mining environment. The strategic approach that is proposed for the diagnostic routine will involve using novelty detection augmented by temporal classification.

May 1, 2004

By P. Strand

Talk Outline ? Location and Regional Geology ? Two Unique Kimberlite Sources ? Mineral Chemistry ? Petrography, Age Dates ? Geophysics ? Exploration and Challenges ? Dyke versus Pipe dispersions ? Geophysics ? Prospecting ? Diamond Results ? Summary & Conclusions

May 1, 2008

By H. A. Bilgin, G. G. U. Aldas

"Ground vibration is the natural result of the blasting process. Many empirical formulae and methodologies including analysis of travel path effects have been developed. The scaled distance, which is the most popular approach for the calculation of the attenuation of particle velocity in the ground, has led to significant advances in the prediction of particle velocity when both explosive charge and distance vary. However, this approach does not consider the effect of ground anisotropy and existence of structural geological features on ground vibration. Therefore, in this study, the effects of these rock mass properties on types, amplitudes, and frequencies of ground vibration waves at four surface mines are examined. The results, which were implemented at Kangal coal mine, Bastas quarry and Kíbrís quarry, provided guidance for the extensive study at Orhaneli surface coal mine.As a result of the study, the authors came to the conclusion that vibration amplitudes change depending on the ground on which sensors were deployed and the conditions depending on whether measurements were done near major structural geological features. It was determined that the vibration amplitudes, measured at equal distances from the source but in different directions, change because of the propagation velocity anisotropy. Besides the change of wave type due to the kind of ground at the measurement location, it was determined that vibration anomolies were due to structural features."

Jan 1, 2004

By Trevor Hamm, Nick Holl

"Cameco Corporation is operator of the world's richest uranium project, the Key Lake mine/mill complex, located within the Athabasca region of Northern Saskatchewan. Mineable resources from the Key Lake ore bodies with an average U,08 content of 2.5% will be exhausted by the year 2000 and open pit mining at Key Lake will be phased out at that time. The mill will continue to operate at increased capacity, using high grade ore from the McArthur River project, a new underground mine at a distance of about 80 km from the Key Lake site. The McArthur River ore with an average U308 content of about 15 % will be blended with separately stockpiled low grade materials from Key Lake with a U,08 content of about 0.1 %. The average (blended) mill feed grade will be about 4%, similar to peak concentrations found in Key Lake ore.The Key Lake ore tailings are presently being placed in the mined out Deilmann pit under sub-aerial conditions, using spigots and a highly efficient pit/tailings drainage system. The tailings resulting from the processing of the blended McArthur River ore will be deposited on top of the Key Lake ore tailings under sub-aqueous conditions. This staged approach shows distinct technical and environmental advantages over an alternative, fully sub-aerial in-pit deposition scheme.The first part of this paper presents an overview of site specific geotechnical and hydrogeological features found at Key Lake and details some of the extensive test and modelling work that was required for environmental impact predictions during the development phase of the facility. The second part of this paper deals with tailings modifications, innovative placement technologies and drainage methods that have been (and will be) employed at the Deilmann Tailings Management Facility {TMF) to produce a highly consolidated tailings body under non-buoyancy conditions. The application of this technology at Key Lake is expected to produce a tailings ""plug"" in the Deilmann TMF which will have a permeability similar to or lower than the original in-situ Deilmann ore, resulting in a minimization of contaminant mass loadings to the environment both during operation and after decommissioning."

Jan 1, 1998

By Rocky (Yaokun) Wu

This paper introduces the development and application of a new cable anchor - Cable-Lok for pre-stressed cable bolting in mines. Cable-Lok is a spring-loaded cable anchor suitable for the drill hole diameter of 50 and 65 mm (2" and 2.5") in medium soft rock to hard rocks. The cable anchor is automatically set on installation and the cable can be tensioned immediately to provide active and primary support throughout its length. Post-grouting can be conducted independently. In comparison with the conventional cable bolting, Cable-Lok anchor will greatly speed-up the cable bolting circle and decreases the cost of cable bolting. Cable bolting anchored with Cable-Lok anchor has wide application in mines, e.g. pre-stressed cable bolting in large span drifts and intersections for permanent rock support, or in hanging walls or stopes for temporary support, or cable lace anchoring etc. This paper introduces the principle of pre-stressed cable bolting and the specifications of the Cable-Lok anchor, presented the testing results in laboratory and the application cases in mines.

Oct 1, 2010

By Steve Custer, Tim Kahl, Sue Parker

"The primary objective of the Barrick Goldstrike expert system is to achieve the desired liberation size for the autoclave circuit while maximizing throughput. In addition, when downstream limitations (autoclave circuit or others) restrict the milling circuit tonnage the expert system further improves grinding product size. Since its implementation, the expert system has provided expected throughput improvements while improving or maintaining circuit performance.Barrick Goldstrike and MinnovEX Technologies Inc. teamed up to install an expert system to control Line I and I1 of the autoclave grinding circuits. The dissimilar equipments of the two grinding circuits coupled to different production objectives, skepticism among operators, and the variability of the ore types processed in each line challenged the implementation.To ensure implementation success, Barrick Goldstrike dedicated four administrators full time to the project. The system administrators included two metallurgists, a process control engineer and a mill trainer. As usual, the control room operators were the experts who provided the operational logic for the foundation of the control system. The administrators and all eleven of the control room operators signed off on acceptance of the system. Current online utilization is 95%.INTRODUCTIONThe grinding circuit for Barrick Goldstrike’s autoclave process consists of two SAG Mill Ball Mill lines. Line 1 grinding circuit is comprised of a 22 by 8 foot, 2500 horsepower Allis Chalmers (AC) variable speed SAG mill, followed by a 12.5 by 14 foot, 1250 horsepower AC ball mill, and a 13.5 by 18 foot, 1800 horsepower Dominion ball mill in parallel. SAG mill recycle from the primary discharge screen (+5/16 inch) is processed through a 1352 Nordberg Omnicone crusher (4.5 foot). A secondary SAG discharge screen (+1/8 inch) closes the SAG circuit. The ball mill circuit is closed with 6 Krebs super D20 cyclones. Line 2 grinding circuit is comprised of a 24 by 12 foot 4000 horsepower Fuller variable speed SAG mill followed by a 16.5 by 30.5 foot 5000 horsepower Fuller ball mill. SAG mill recycle from the primary discharge screen (+5/16 inch) is processed through a 1560 Nordberg Omnicone crusher (5 foot). A secondary SAG discharge screen (+1/8 inch) closes the SAG circuit. The line 2 ball mill circuit is closed with 12 Krebs super D20 cyclones. The underground Meikle ore is typically fed through Line 1. Achieving the desired product size is critical for successful processing of Meikle ore. Open pit Betze ore is fed to Line 1 when Meikle ore is unavailable. Line 2 processes Betze ore exclusively. Throughput is maximized when processing Betze ore as the product size is less critical. The products of these two circuits are combined as feed to the autoclave circuit. The ore types and the autoclave circuit demands determine the required grinding circuit product size and maximum combined mill feed tonnage."

Jan 1, 2001

By D. Hatfield

"Flotation plants typically aim to maximise recovery at or above a target grade. As the ore from the mine varies, operators increase or decrease the mass pull in different flotation banks by adjusting air and level set points in order to achieve target concentrate grade. A methodology has been developed to maximise overall recovery at target grade by determining the optimal mass pull for each bank. However, the approach of targeting equal grade for each ore type in the deposit leads to sub-optimal overall recovery. This is because some ore types sacrifice a large amount of recovery to reach target grade while others easily achieve target grade and can be processed at higher than target grade for little or no loss in recovery. Processing different ore types at different grades and blending the concentrates therefore gives a higher overall recovery.This paper presents a case study where an 80 year production forecast was made for a large Chilean copper concentrator in feasibility stage. A circuit model was created using SGS’s Integrated Geometallurgical Simulator (IGS) for the different ore types to be processed. The model was calibrated from standard rougher flotation tests (MFT), cleaner tests and from the results of plant surveys of similar operations. The pull rates for each bank in the circuit were determined to achieve an optimal graderecovery curve for each ore type. These curves were combined at different concentrate grades for each ore type to obtain the mathematically optimal overall recovery at target grade. The paper shows a methodology for obtaining an optimal combination of operating conditions for each ore type to maximise overall recovery at a set combined concentrate grade."

Jan 1, 2013

By Hamid Butt

Information Technology ??Advanced Information Technology is dramatically changing information flow within organizations. This enables employees to have information at their fingertips to make informed and prompt decisions. ??Real-time information allows timely analysis, which dramatically reduces cycle times, making organizations faster and more flexible. Business Challenges ??Continual growth of mining and Mine mobile fleet.??Increasing maintenance costs. ??Difficult to identify and troubleshoot equipment problems while equipment is operating. ??New equipment is increasing in complexity and cost. Therefore, each failure results in a greater impact to production and cost. ??Troubleshooting practice is reactive. ??Protect and optimize the use of mining assets to realize maximum business value. ??Maintenance and Operating information is not easily accessible ?no near real-time system that provides complete information.

May 1, 2006

By Frédéric Flament, Luc Lachance

"The important task of metallurgical accounting that used to be done manually is being more and more automated. Currently available solutions can generate accounting reports without human intervention or almost. However, the practical conditions for fully delivering the promised benefits of those solutions are sometimes overlooked either by end-users or by integrators. The mere fact of filling reports with values satisfying several constraints such as mass conservation constraints does not, by itself, ensure a high quality metallurgical balance. Since managers make decisions based on these reports, it is logical that the metallurgical balance performance be monitored and retrofits be made if necessary. Such retrofits may involve modifications to the measurement strategy or the reduction of the spatial resolution of the material balance model. This requires an estimability and redundancy analysis (ERA) tool to assess the feasibility of the modified model. Since determining by hand the estimability and redundancy of a set of non measured and measured variables is not trivial, even for a medium-sized mineral processing plant, a dedicated ERA tool brings valuable assistance to the metallurgist in charge. The present paper aims first at explaining how a state of the art metallurgical balance is a key enabler for the adoption of a smart process plants paradigm (SPPP) in mineral processing. Then, the fundamentals behind the building of an ERA algorithm are introduced and illustrated by two examples. Finally, the role of an ERA tool in achieving state of the art metallurgical accounting and how it contributes to delivering additional value are discussed.INTRODUCTIONThe Smart Process Plants Paradigm (SPPP)Mineral processors have seen an increase lately in external pressures toward operating performance improvements. Indeed, the globalization of the mining business is a key driver to becoming more productive, more responsive to market changes, to improving corporate governance and reporting standards. Furthermore, mineral processors are also expected by their neighbouring communities to continuously improve their sustainability score. These current pressures differ somewhat from the past ones in leading to a larger than ever number of conflicting constraints that plant managers must concurrently satisfy while maximizing plant profitability. It is in turn not surprising that this context requires actions involving more real-time collaborative actions between more people in more places than ever before."

Jan 1, 2011

By Brad Thrall, Howard Bradley, Michael Samuels

"LOCATIONViceroy Minerals Corporation owns and operates the Brewery Creek heap leach gold mine located approximately 55 kilometers northeast of Dawson City, Yukon Canada. Dawson was home of the Klondike Gold Rush 100 years ago. Upon startup in November 1996, the Brewery Creek Mine was the northernmost operating heap leach gold mine in North America and one of the most northern in the world. Located at 64"" 02' latitude, the mine is less than 300 km south of the Arctic Circle. Access to the mine is available at Kilometer 14 of the Dempster Highway, linking Inuvik, NWT and the Klondike Highway, 40 kilometers east of Dawson City. The immediate vicinity is the only part of Canada not glaciated in the Wisconsin advance, which has resulted in an oxide ore deposit due to approximately 80,000 years of weathering - an area unique in Canada.DESCRIPTION OF OPERATIONSIn order to utilize heap-leaching technology successhlly in an extreme northern climate, a number of design features were incorporated into the process flow sheet to operate on a year round uninterrupted basis. Winter temperature may dip below minus 50 ""C, demanding an approach to mining and leaching that is different from heap-leach operations in more temperate climates. Because of the severe winter temperatures, the mine operates approximately 2 10 days per year, while the leaching process is continuous on a year round basis. Run of mine ore (ROM) is placed on the heap beginning in mid April until late October. Overall gold recovery is projected to be 78% over a 325 day leaching cycle with annual production levels of 2.3 million tonnes of ore placed on the pad, with an average of 75,000 ounces of gold recovered per year. The recovery process utilizes conventional sodium cyanide leaching, carbon adsorption, high pressure stripping, thermal reactivation and acid washing, and on-site smelting.HISTORYFollowing a comprehensive governmental and public review of the proposed project, a Class A Yukon Water license was issued in August, 1995. Construction started in 1995 and leaching commenced in October 1996.A Socio-Economic Accord with the Tron Dek Hwech'in First Nations provides for employment, contract, and scholarship opportunities for First Nations citizens."

Jan 1, 1999

By J. J. Bouillon

"Located in the northwestern portion of the Abitibi greenstone belt, Les Mines Selbaie is a copper-zinc (silver and gold) producer. Felsic tuffs host three are zones. Composed of sulphide veins and breccias, they are not exhalative massive sulphide deposits, except, probably, for the massive pyrite (fragments and lenses) localized close to the top of the volcanic sequence.The total of all (mineable and mined) ore in the three zones presently outlined on the property, is of the order of 29.9 x 106 tonnes with average grade of 0.63 g/t Au, 37.02 g/t Ag, 1.21% Cu, 1.91% Zn.The ore reserve calculations and the daily production procedures are computerized to various degrees. The data handling process is highly computerized.Various geophysical methods are, and have in the past, been successfully used on the property. The ""mise-à-la-masse"" surveys were used to perform the geological interpretation of an underground deposit (A-2 zone). Presently the PULSE-EM surveys are performed in all surface and underground exploration drill holes."

Jan 1, 1990

By R. Webber, D. Averill, L. Whittle, D. Moffeti, G. Kassakhian

"This paper describes the recent pilot-plant work carried out on two alternative processes capable of producing an effluent containing less than 10 pCi/L total radium-226 activity and very close to 3 pCi/L dissolved radium-226. The processes incorporate coprecipitation of radium with barium sulphate by the addition of barium chloride in continuously stirred tank reactors followed by either chemical coagulation with ferric chloride, flocculation and clarification, or polymer-aided dual-media filtration. IntroductionUranium mines in Canada have practiced radium removal from tailings basin effluents since 1965. Treatment consists of addition of barium chloride to precipitate radium as barium- radium sulphate and provision of natural or constructed settling ponds for sedimentation. This process, however, has been identified as being deficient in that it allows particulate or suspended radium-226 releases which are higher than the regulated dissolved values». Also, the large size of some of the settling ponds is believed to represent a real limitation of the present technology because of inferred difficulty in recovery of barium-radium sulphate precipitates.The Federal Government Mining Task Force established a Radioactivity Sub-Group in 1974 to assist in the development of effluent regulations and guidelines for the uranium mining industry. Among the recommendations of the Sub-Group was the need to seek more effective methods of radium removal, including development of physical/chemical treatment systems as an alternative to settling ponds. In response to the SubGroup recommendations, a bench-scale study began in March 1976at the Wastewater Technology Centre (WTC) of Environment Canada . The results of this study indicated that coagulation and flocculation of the precipitate from barium chloride addition is a viable alternative to sedimentation in settling ponds(3). The bench work was expanded and accelerated in 1977, with financial assistance provided by the Atomic Energy Control Board. Subsequently, a research program with a larger scope was developed; this program is jointly managed and funded by government and industry, as shown in Table I.One of the goals of the joint program is to develop, at pilot scale, a physicalI chemical process to reduce the radium-226 content of uranium mining and milling effluents. Target radium-226 activities for treated tailings basin effluents were set: namely, 10 pCil L total and 3 pCil L dissolved radium 226. Extensive bench-scale and pilot-scale work was conducted through 1978 and 1979 and has culminated in the development of two physical/chemical processes. This paper describes work carried out at a pilot plant which led to the selection of the two physical I chemical processes for demonstration. In short-term tests, the processes produced effluents meeting the radium-226 target activities."

Jan 1, 1980

By M. Pourkani, M. Karga, Samid Banis, Andre Laplante, G. Langari-Zadeh

"The Sarcheshmeh mine processes 40,000 t/d of ore grading 0.9% Cu and 0.035% Mo. Grinding is effected in single stage ball mills using 80 mm forged steel balls, with an average consumption of 850 g/t. One of its 5 m diameter, 8 m length ball mills was emptied to measure the ball size distribution. The broken balls were first separated from the total charge, and the remaining balls classified into five size intervals of +7O mm, -70 +60 mm, -60+50 mm, -50+40 mm, -40 mm.The charge was composed of 280,534 balls (excluding broken balls) with a total mass of 305,180 kg. It was found that 4.0 % of the balls were broken; the size distribution of the charge was also markedly different from the desired one, in particular for the small-sized balls. For instance, 9% of the balls were expected to measure 2.54 to 3.18 cm in diameter, but none was found. On the other hand, the amount of top size balls was 30% higher than expected. The radial hardness of balls, which was determined by cutting the balls in halves, showed that the hardness sharply drops when the balls become smaller than 65 mm. The unexpected ball size distribution was attributed to the rapid change in the balls radial hardness. Based on the measured ball size distribution, a new ball make-up charge which uses 80% of 80 mm and 20% of 60 mm balls instead of 100% of 80 mm was proposed and implemented. The effect of the new ball make-up procedure in terms of ball consumption and grinding efficiency is being investigated."

Jan 1, 1999

By Oy Leuangthong

The McMurray formation in the Athabasca oil sands deposits of Northern Alberta is part of the world?s second largest proven crude oil reserves. The formation is characterized by stratigraphic layers that correspond to three different depositional environments: Marine, Estuarine and Fluvial facies. Resource estimation for oil sands has traditionally relied on polygonal and inverse distance schemes. These techniques are simple and straightforward in practice, but they do not permit reliable uncertainty assessment. This paper describes the modeling of the McMurray formation using modern geostatistical techniques. Geostatistical modeling should be performed within homogeneous geological facies. The methodology for geostatistical simulation within each of the identified facies involves: (1) assessing the most appropriate stratigraphic transformation for optimisation of the correlation structure, (2) determining representative distributions with declustering and debiasing techniques, (3) modeling spatial continuity of the bitumen grade, fines grade, water saturation and other petrophysical variables, (4) performing estimation and cross validation as checks against simulation results, (5) performing simulation for uncertainty quantification of bitumen and fines grade, and (6) model checking of simulation results against the input data and comparisons against the kriged models. These steps are described in detail. The application of these models for uncertainty quantification in support of resource classification is also discussed.

May 1, 2004