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In high stress mining environments, production drill rigs are often employed for rapid drilling of boreholes for systematic cable bolting. One outcome of this drilling method is the need for larger boreholes than would normally be drilled using customised bolting machines, such as the Tamrock Cabolter. Past laboratory studies indicate that, under ideal grouting conditions, borehole diameter has little effect on the pull-out strength of cable bolts with high bulb densities. However, the sensitivity of pull-out strength to large boreholes and less ideal variations of grout strength have not been investigated. To explore these sensitivities, industry standard single embedment tests were conducted on large boreholes simulated using steel pipes. Four borehole diameters were tested, namely: 42 mm, 52 mm, 81 mm and 106 mm. In each case the grout water to cement ratio was varied from 0.35 to 0.45 and two cable bolt bulb spacings were considered, namely: one and three bulbs per metre. The results indicate that, across the range of parameters tested, variations in peak axial load at failure corresponding to changes in hole diameter were statistically insignificant.

Nov 25, 2010

By S O. Hille

Modern remote mining operations in Australia are more commonly trending towards fly-in/fly-out (FIFO) sites. This trend is driven by numerous factors including increased business centralisation, reduction in operating costs, and a desire to live in coastal cities that offer closer family networks and a greater diversity of facilities. Consequently, the resource development industry has had to adapt. When WMCÆs Mount Keith Nickel Operation commenced operations in 1994, it was developed as FIFO for its entire workforce. Since then, there have been several permutations of rosters within a 21 day compressed work cycle including the 14/7 cycle. This paper discusses a case study of the change in management process to the 9/5 work cycle focusing on minimising fatigue in the workplace. It includes the discussion of the business case, employee reaction and the practical application. The impact of the best practice change after 18 months is discussed.

Jan 1, 2002

By J Rowland

"This paper was primarily put together in order to demonstrate what are believed to be acceptablestandards, in relation to ventilation surveys and the subsequent model assembly process. Thiswas brought about by the fact that in many parts of the world it is regarded as acceptable to carryout ventilation surveys and then build and supply the client with a æstick fi gureÆ type ventilationmodel. Such stick models have arguably litt le use and a very short life span in the real world and isalmost impossible for site staff to maintain. Thankfully most underground coal mines in Australia strive to maintain a true replica model of their ventilation circuits and to keep them in a relatively good state. Given that these mines own and maintain the models, it is often seen as necessary to update or rebuild them. The level of survey detail required to do so is totally dependent on the end use of the data and the criticality of the accuracy of the data set, to the ongoing safety and viability of the business. Mine technical personnel should think clearly about the use and importance of the ventilation survey and subsequent report outputs required that will help them bett er understand their mines and bett er prepare them to manage their ventilation circuits, on an ongoing basis. This paper provides some guidance for Australian ventilation engineers so they may plan and execute this work æin houseÆ, should they rightly choose to do so. To this end, methods of data collection and circuit analysis required for surveys of a high order of accuracy are detailed. Also, some of the issues which are important when formulating a strategy to carry out the appropriate ventilation survey for the required purpose are summarised. As well, the major details that should be furnished within any survey and some survey/report outputs and/or omissions, which are clearly not acceptable, are highlighted."

Jun 1, 2012

By D Roughsedge, J van der Sandt, L van den Berg

Axial flow fans are commonly used as auxiliary fans in underground mines to supply air to development headings. As diesel dilution requirements increase the fans used in conjunction with ventilation bags are becoming larger in diameter to move greater quantities of air over greater development distances. It is not uncommon for mining operations to sometimes use a number of these larger auxiliary fans with high airflow capacity in parallel as primary fans for the operations. These primary fan stations are often considered temporary installations and the fan selection and fan station design is rarely optimised. These temporary installations may become permanent resulting in an inefficient or unreliable primary ventilation system. A recent study looked at the likely causes of multiple primary fan failures at one operation with axial fans installed as primary units where the fan selection and fan station aerodynamic design was far from optimal. This paper explores some of the typical mechanisms of failure such as high pressure stall, unbalanced airflow, and fan tip speed as well as fabrication material. The paper proposes a number of good practise principles that should be considered during the design of a fan station. A second topic covered is the advantages and disadvantages of using different types of fans such as axial, mixed flow and centrifugal units. Here the concept of fan specific speed and its relevance to fan selection is discussed. Finally the paper quantifies the effect of using a high pressure auxiliary fan as a primary fan in a low pressure circuit, which may increase the mineÆs operation cost.CITATION:van der Sandt, J, van den Berg, L and Roughsedge, D, 2013. Practical considerations when using auxiliary axial flow fans as a primary mine fan, in Proceedings The Australian Mine Ventilation Conference , pp 63-70 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By R Kjar

Globally, it is anticipated that the mineral sands industry will enter a period of short supply. Demand for both titanium dioxide and zircon is forecast to continue increasing, with new projects needed to come on-stream to fill the supply gap. Victoria is well placed under this scenario as a source due to the high quality of its mineral assemblage, its excellent resource grade and the globally significant size of its mineral sands resources.Australia’s mineral sands rich Murray Basin remains under-developed, especially at its extensive Victorian margins. Development to date has not progressed adequately for the reasons of technology difficulty, history of competition with other jurisdictions and the absence of a platform that requires development as a consideration for security of tenure. Victoria’s mineral sands potential is not just about the Murray Basin, in addition, there have been discoveries in the Gippsland Basin and prospective sites in the Gippsland Basin remain under-explored. Key problems included the lack of available ground for potential developers and the intellectual property of solutions to technological problems associated with the fine grained mineral deposits belonging to a previous developer (with patents now expired).As such, the timing is right to re-visit the potential of the Murray Basin as a site for long-term development with high returns based on current and predicted prices.In order to understand why Victoria’s earth resources in general, and mineral sands in particular, remain under-explored and undeveloped, the Department of Primary Industries initiated an internal review of its role in encouraging and supporting investment in the earth resources sector.As a result, the Victorian Government has committed to taking action to encourage effective ground turnover and acknowledges that a new focus on engagement with industry is needed to bring new investment to the State. The revision of the Mineral Resources (Sustainable Development) Act 1990 provides an opportunity for the government to better align its legislative processes with industry project lifecycles and facilitate access to valuable resources that currently remain undeveloped.Victoria has a track record in assisting projects reach development stage. Iluka currently has two operations in the State in addition to its mineral separation plant that is capable of processing HMC from its South Australian operations. Iluka is expected to ramp up its Murray Basin Stage 2 operations with the WRP mine scheduled to come on line in early 2012. Meanwhile, Astron is actively seeking partners for its Donald Mineral Sands project. The project is becoming increasingly attractive given the recent price hike in zircon; Astron has access to an estimated five to 6 Mt of zircon in its Donald WIM 250 deposit.Given its substantial and valuable mineral sands endowments, the State of Victoria should sensibly be the centre of future investment in project development. However, as previously mentioned this is currently not the case. The Government is therefore committed to implementing new measures that protect security of tenure but ensure that genuine companies can access endowments where they have a clear intent to work those resources.

Oct 5, 2011

In March 2003, Rio Tinto Coal AustraliaÆs (RTCA) new Hail Creek open cut coal mine commenced operations in the Bowen Basin. Hail Creek is a two-seam strip mining operation utilising two 90 m3 draglines and a fleet of excavators and trucks to remove the overburden. All overburden at Hail Creek is blasted prior to excavation. The mine conducts its own drill and blast operations while engaging Dyno Nobel for the provision of explosives supply and loading truck (bulk explosives vehicle û BEV) services. This arrangement was favoured over outsourcing the entire blasting function to a contractor. Subsequent to a value engineering review, the mine set about developing and implementing a blasting operation that did not rely on the need to store bulk quantities of ammonium nitrate on site. There were advantages identified in doing this, in particular the reduction of capital expenditure required and reduced exposure to a number of recently introduced security requirements. This approach also makes sense operationally. The establishment of reload facilities for the BEV close to the blasting location, where turnaround times are kept to a minimum, increases the productivity of the BEV. For this strategy to be successful the logistics of ammonium nitrate supply into the blasting operations has to be well planned and thoroughly executed. This means a robust planning and forecasting arrangement needs to be established with the supplier and transporters of the ammonium nitrate. To date, 80 million bcm of overburden has been blasted at Hail Creek and each year the quantity of overburden requiring blasting is increasing. The purpose of this paper is to present the findings of a study: evaluating the effectiveness to date of the strategy to conduct blasting operations without ammonium nitrate storage on site, and identifying whether there is a limit to which this strategy can operate after which the introduction of bulk ammonium nitrate storage facilities are necessary.

Jan 1, 2007

By A Specht, A Müller, V Montenegro, S Winkler, E Klaffenbach, A Schmidt

In the process of primary copper smelting in flash smelting furnace (FSF), the ratio of iron to silica (Fe/SiO2 mass ratio) primarily determines the slag viscosity and magnetite formation. Viscous slag does not only cause difficulties in daily operation, such as in tapping, it also increases the copper losses to slag. Thus, keeping the Fe/SiO2 mass ratio at the desired level is an important aspect of FSF and slag cleaning furnace (SCF) operation. In this study, the improvement of the Fe/SiO2 mass ratio was conducted in two steps: First, the optimal Fe/SiO2 mass ratio was derived based on thermodynamic data. Based on this analysis, appropriate control limits were determined. Second, this range of favourable Fe/SiO2 mass ratios was implemented into operation by an advice-based control system, which suggests the addition of silica based on the analysis of SCF slag. As this approach was successful, the same advice-based control system principle was adapted for the coke addition to the SCF. After testing the new advice-based control for several months, the production data confirm the predictions by thermodynamics: since the prediction was implemented as an advisor, the copper and magnetite content in SCF slag is significantly reduced and viscous slag is reported less often by operations.

Aug 21, 2024

By B P. Micke

Central Norseman Gold Corporation was established in 1935 and has been mining on the Norseman field in Western Australia since then. It is Australia’s longest continuously operating gold mining operation at nearly 80 years, although it has had its periodic challenges in the intervening years.Over the last 40 years, a series of open pit mines around the Dundas Goldfield have supplied lower cost mill feed to the Phoenix Mill at Norseman from time to time but this has largely come to an end for the foreseeable future. Now that underground ore sources are once again the principal mill feed, there are several challenges to be met for an ongoing profitable operation.During the last 20 years, there have been three different owners and this has affected the manner in which the operations were managed quite significantly. These differing approaches are contrasted and examined in some detail from both the operational and financial aspects.Planning of a downsized operation to ensure sustainable profitability in the future in a mining environment where there has rarely been more than two to four years of reserves ahead of the mill for planning purposes has been a significant challenge. Several of the options examined are described, including alternatives for future mine development.CITATION:Micke, B P, 2014. Managing the margin at Norseman, Western Australia – a case study, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 119–128 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By D J. Williams, C Zhang, F E. Herrera Cabrera

Farming on bauxite residue using screw propelled equipment (SPE) has been commonly practised to accelerate dewatering and as it promotes consolidation and enhances storage capacity. However, it is unclear when and how often farming should be conducted during the transition of bauxite residue from slurry to dry solids and how deep each slurry deposition should be. To address this issue, three desiccation tanks were established in the laboratory to investigate how much farming could enhance the desiccation and consolidation of tailings. The cuboid tanks, of 350 mm in height and 300 mm in width and length and with an opening on the top, were placed on load cells to monitor the water loss during desiccation and were instrumented with moisture and suction sensors designed and developed at the University of Queensland to measure the water content profile of the residue. The bauxite residue, composed of silt-size particles with low plasticity, was hydraulically deposited in the tanks as a slurry at 27% solid content, resulting in 100 mm depth of solid material settling. Evaporation was enhanced by placing two identical electrical fans above the tanks. Two phases were conducted. In the first phase, the two tanks were left untouched for evaluating non farmed conditions and for calibrating sensors, while in the second phase, three tanks were subjected to atemporal farming using purpose-built screw propelled equipment. The experiment was terminated when the residue was completely desiccated. This paper reports on the instrumented tank set-up and the results obtained to date.

Jul 1, 2021

By J Joy, A Bye, G V. Kizil

This paper presents an application of the newly developed risk-cost-benefit (RCB) framework to support risk management decisions for the selection of wall monitoring technologies at an open cut mine site. The RCB framework quantitatively assessed the risk of unstable slope-induced wall failure and its impact on both loss of life and coal recovery. The RCB framework was utilised in the selection of an optimum group of risk-controls to effectively manage the risk of wall failure to ensure safety and optimal production occurred. The RCB framework incorporates mathematical modules that integrated RCB calculations and risk-control effectiveness assessments to determine the risk reduction and financial impact of the examined safety initiatives.This paper provides an overview of the five-staged RCB framework, incorporating the RCB decision support tools, RCBGEN (Risk-Cost-Benefit Generator) and RCEMETHOD (Risk-Control Effectiveness Method), and demonstrates its application to slope stability risk management at the case study site. The RCB charts are designed to display a balance between risk, cost and benefit for easy interpretation by decision makers to support the objective selection of an optimum suite of risk-controls. The RCB analysis revealed that a combination of ævisual inspections, automatic extensometers and radarÆ for fast- and slow-wall failures with structure were sufficient to reduce the probability of loss of life (PLoL) to the æModerateÆ zone as defined by the Australian Geomechanics Society (AGS, 2007) for the case study site. The new framework presented in this paper provides a method to effectively determine the suitability of risk-controls and supports industry efforts to reduce risk to as low as reasonably practicable (ALARP).CITATION:Kizil, G V, Bye, A and Joy, J, 2012. Risk-cost-benefit analysis of early warning technologies impact for wall failure risk management in surface mines, in Proceedings Eighth Open Pit OperatorsÆ Conference , pp 55-64 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 18, 2012

By P Radulovic, V Lawson, M Muller, J Wallace

The Mount Isa Copper Concentrator was commissioned in 1973. Since commissioning some significant upgrades have been undertaken such as: • the replacement of the rod mill/ball mill circuit with AG mills and the subsequent conversion of the AG mills to SAG Mills. • the introduction of columns as retreat cleaners in 1987, then reallocated as prefloat cleaners in 1994 and rougher cleaners in 1996.• the repurposing of some rougher capacity to preflotation roughing to remove carbonaceous pyrite and talc in 1994.• the introduction of a Jameson Cell for preflotation cleaning in 2000. • the expansion of the rougher and cleaner circuits in 2002 with the inclusion of 6 x 100 m3 Wemco cells to replace the capacity lost to preflotation and to increase residence time and improve recovery. In 2013 work commenced to replace the cleaner circuit after 40 years of operation. The new cleaner circuit, consisting of 3 x B5400/18 Jameson Cells, replaced the rougher cleaner columns, cleaners, recleaners and retreat Agitair banks and was commissioned in Sep 2015. The new cleaner circuit was configured as two cells in series producing the final concentrate and a cleaner scavenger cell to supplement the existing Wemco cleaner scavenger cells. The performance of the new circuit is discussed.CITATION:Lawson, V, Muller, M, Radulovic, P and Wallace, J, 2017. Mt Isa copper concentrator cleaner circuit redesign, in Proceedings MetPlant 2017, pp 279–287 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By R Schlueter, H Mischo

The mining industry is facing a variety of geological, technological and social challenges. Future deposits show a general tendency towards increasing depth with complex ores and decreasing grades. One promising approach to deal with low-grade ores is bioleaching in the form of heap and dump operations. Bioleaching is already a state-of-the-art technique, especially for the extraction of copper from sulfide ores. The next step in the development of this technology will be its application as an in situ technology. First attempts to adapt this technology in underground mining in the form of stoping and block caving have already been made. Both methods have to be carried out adjacent to conventional mining operations and therefore require much effort regarding drift development as well as extraction and transport. The adaption of bioleaching as a borehole mining method is the next step to establish an innovative in situ technique to meet future challenges.The Freiberg University of Mining and Technology established the Biohydrometallurgical Centre for Strategic Elements (BHMZ) to foster interdisciplinary research along the whole biohydrometallurgical process chain. In general, 13 different university institutes and several associated groups with about 30 PhD students are mainly focusing on the extraction of indium and germanium from deposits, tailings and recycling material. One of the core projects within the BHMZ is the design and implementation of an underground in situ bioleaching testing facility.This paper demonstrates the potential of in situ bioleaching under technological aspects. Furthermore, different conditioning methods to increase the permeability of the orebody will be explained, and the BHMZ’s underground testing facility will be presented.CITATION:Schlueter, R and Mischo, H, 2015. Potential and applications of underground in situ bioleaching, in Proceedings Third International Future Mining Conference, pp 205–212 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By Johnson MT

The microprocessor revolution of the 1970's dramatically improved the price/per- formance of graphics hardware. Together with improved communications and new software concepts and standards this has resulted in the emergence of a new tool with particular application to the mining industry. The Distributed Graphics Processor (DGP) offers more natural means of interaction with com- plex technical models.

Jan 1, 1983

Seven papers included in Session 8 of the Third International Mine Water Congress under the heading "Achievements in Mine Water Management & Research" have been reviewed. Only one paper, a case study by Masters on biological treatment of inorganically polluted effluent, has any connection with research in the sense of seeking new, generally applicable knowledge which would advance the frontiers of mine water management. The remainder deal with various aspects of the management of mine water ranging from investigation of the geology of a specific aquifer system through operating dewatering systems to the management of specific effluent disposal problems.

Jan 1, 1988

By R E. Conder

A major initial and ongoing cost component in many mining operations is that of transporting mined materials and processed ore from the point of extraction or processing to the next operation. For various reasons the transport distance can be significant or in some cases the route may be particularly challenging. The trend to higher production rates to gain economy of scale benefits and capitalise on sales opportunities means that optimisation of transport can play a significant part in profitability. Apart from the cost criteria, increasingly there are other criteria such as environmental restraints, land ownership and security of supply that can have a significant impact on determination of the optimum route and transport vehicle. The paper aims to briefly highlight the important selection criteria and the benefits and disadvantages of the most commonly utilised transport vehicles. It then moves on to looking in more depth at belt conveying, highlighting the unique capabilities of the Metso MRC Cable Belt Conveyor system.

Jan 1, 2004

By F Clark, J T. Carswell

Ore definition for final stope planning is often a challenging prospect in underground (UG) gold mines which exhibit high geological and grade variability. Unlike the grade control (GC) scenario in an open pit (OP), the ability for the mining geologist to plan a sampling campaign which effectively characterises the underlying mineralisation is fraught with difficulty. UG sampling patterns are strongly clustered and typically not dense enough to characterise the spatial and statistical properties. Very commonly, sample volumes are not large enough to provide a reliable grade estimate of the surrounding rock. These factors critically affect our ability to accurately map out ore positions and estimate metal quantities.At Sunrise Dam, traditional UG sampling and modelling techniques have proven to be an unreliable strategy for successful stope planning and extraction. The problem was first observed during the final cut-back in the open pit for which the mineral resource model was constructed from UG diamond drilling. Open Pit grade control reconciliations were strongly positive for both tonnage and grade compared to the resource model. Underground workings missed significant quantities of ore which was laterally defined by open pit reverse circulation (RC) GC drilling. Upon examination it was realised that the cause of the problem was one of inadequate sample density and sample support, the implications of which potentially affected the entire UG mine.As part of a broader study into underground grade control procedures, detailed reconciliation of initial stope production from the GQ domain also pointed to inadequate sampling as a major constraint to effective grade control and reserve conversion.To overcome this deficiency, dense 115 mm wet RC grade control drilling and conditional simulation modelling has been successfully implemented with the intent to replicate the grade control process in the open pit. The increase in sample density and sample volume has proven to be a very effective tool for mapping out highly complex mineralisation. A marked improvement in stope definition, reserve conversion and Mine to Mill reconciliations has been demonstrated on the back of an innovative approach to UG grade control.CITATION:Clark, F and Carswell, J T, 2014. Using reverse circulation drilling to improve sampling in a complex underground gold operation – an innovative approach to underground grade control at the Sunrise Dam Mine, Western Australia, in Proceedings Ninth International Mining Geology Conference 2014 , pp 143–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By R Schiller, E Chait

"Quebrada Blanca is a porphyry copper deposit located in the Eocene-Oligocene belt of Chilean Andes. Operation started in 1994 and original reserves for supergene mineralisation gave a life-of-mine (LOM) of 20 years; however, further exploration extended the LOM until 2020.In order to optimise the remaining five years of supergene resource, geometallurgical variables were added to the geological model including copper recovery and acid consumption. LOM plan encompasses finishing the phase number eight and the future development of phases 11 and 13.LOM lithologies include diorites, quartz monzonites, porphyries, igneous and tourmaline breccias. Main alterations are: potassic, phyllic and argillic. Litho-alterations or geometallurgical units were formed by combining five types of rocks with three types of alteration. According to statistical information, the deposit can be represented with 12 litho-alteration units, which cover 98 per cent of the LOM volume.For copper recovery information, there were 40 mini-columns tests made in order to obtain kinetics curves and copper recovery values after comparing the difference between head and tails grades. Acid consumption was obtained using an automatic neutraliser device-based test.Historical data said that copper recovery in pads after 450 days of irrigation is around 75 per cent of recoverable copper while acid consumption is around 5.5 kg/t.According to this study, lower recoveries are related with potassic-altered diorites and argillic-altered quartz monzonites with values around 60 per cent. On the other hand, best recoveries could be found in potassic-altered quartz monzonites and argillic-altered diorites with values closer to 80 per cent.It was also revealed that the most reactive rock is the potassic-altered diorite with 12 kg/t of acid consumption. This rock covers approximately 40 per cent from phases 11 and 13.The final geomet model was calculated using a program that relates each geometallurgical unit with a specific copper recovery and acid consumption value. Results found after comparing model-obtained information with historical leached pads data were used to validate the model.CITATION:Chait, E and Schiller, R, 2016. Adding Copper Recovery and Acid Consumption Variables to the Geological Model of Quebrada Blanca, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 257–266 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By E J. Sellers, A Cocker

Movement of the fragmented rock mass is an inevitable consequence of open cut blasting. Uncontrolled, unaccounted movement from blasting commonly causes ore loss and dilution from waste mixing. Therefore, the prediction of the post-blast location of both ore and waste is vital in grade control and of direct interest to mining geologists. Direct measurement techniques have matured significantly over the past decade, but their use remains expensive and labour intensive. Access and safety issues are further disincentives to regular movement monitoring. What is needed is a combination of direct measurement to establish baselines and reliable predictive modelling.The W H Bryan Mining and Geology Centre of the University of Queensland has pioneered 3D blast movement modelling using ‘physics engines’ to handle in-flight collisions and predict the final resting place of blasted material. Open cut metalliferous mines are a demanding environment for this style of modelling as they can involve complex geometries and variable buffering, which leads to inconsistent confinement. A version of the model designed to deal with these complexities is under development. A well-controlled field trial was needed to validate this new version.A validation trial was completed at a gold mine in South-East Asia. The aim was to increase throughput by increasing the blast powder factor without losing grade through dilution and mixing with waste. Four blocks were blasted to identify the effect of bench height and face confinement on ore movement, fragmentation and process throughput. The powder factor and blast timing were kept constant. Movement of the broken rock was measured by placing blast movement monitors at known positions in the block and then locating them after the blast. The majority of sensors were recovered, providing a unique insight into blast movement dynamics and generating a substantial data set for model validation.The model (called ‘MetaMove ‘) was calibrated for one blast and applied to investigate the extent of grade loss and possible mitigation strategies. Conventional mining techniques that involved firing across the strike of the orebody, and no post-blast boundary adjustment of the ore/waste boundaries prior to digging, were found to cause up to 44 per cent loss of high-grade ore, depending on the grade distributions. Post-blast adjustment of the ore/waste boundaries can negate this loss. The model indicates that altering timing and ensuring that the block boundaries are well confined can further constrain the movement of ore/waste boundaries. Thus, the model can be successfully applied to minimise grade dilution and limit misclassification of ore as waste whilst using higher powder factors to increase mill throughput. Application of a calibrated model to move ore/waste boundaries prior to digging will enable the production geology team to add significant value to the mining operation.CITATION:Cocker, A and Sellers, E J, 2014. Modelling blast movement for grade control at an open cut gold mine, in Proceedings Ninth International Mining Geology Conference 2014 , pp 377–386 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

"Recognising that the mining industry is wedded to the break-even cut-off grade rather than a cut-off grade that optimises value, the author examines some perils and pitfalls in the use of break-even grades that lead to what the author calls ‘negatively geared ore reserves’.Negatively geared ore reserves occur when a portion of the ore reserves actually has a negative value and is effectively being subsidised by the more profitable portion of the ore reserves. This situation is generally difficult to detect with the level of information available to the public investor. The ore reserves can still be quite profitable in total, but now possess a level of risk that may not be appreciated.The risk profile (financial risk) of a negatively geared ore reserve is far greater than for a non-negatively geared ore reserve. Like a negatively geared investment property in a falling property market (for readers familiar with the Australian tax minimisation investment strategy), when the price of a commodity falls, a company that possesses a negatively geared ore reserve loses value at a magnified rate relative to a company that has a neutral or positively geared ore reserve. In the extreme case of a major commodity price reduction, as happened with the gold price in mid-2013, the negatively geared ore reserve can easily become negative value in total, not just in part.The negatively geared ore reserve is sometimes intentional – for instance in order to increase published ore reserve tonnages and meet the CEO’s key performance indicators – but is also often unintentional, resulting from various errors in the break-even calculation. Common errors in calculating a break-even grade include using fixed metallurgical recoveries, not including allowances for ideal laboratory versus real plant results, ignoring available operational data and using modal rather than mean parameter values in cost and performance calculations.This paper examines a common value distribution profile in many ore reserves and the effect of common break-even grade errors on this profile.CITATION:Poniewierski, J, 2016. Negatively geared ore reserves – a major peril of the break-even cut-off grade, in Proceedings Project Evaluation 2016, pp 236–247 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

Sampling of CIL/CIP circuits is typically done by compositing samples of feed and tails over eight or 12 hour periods. As the residence time in the leaching tankage may be approximately 20 hours, the tails from any period being derived from material entering the circuit 20 hours earlier do not correspond to the head from the same sampling period. Moreover, mixing in the series of tanks in a circuit also modifies correspondence between input and output. A special purpose simulator has therefore been developed to allow for the mixing and delay in the tankage and permit estimation of the head assays corresponding to any tailings sample. Thus more accurate assessment of the day-to-day recoveries of gold and silver follows. The model, programmed in Excel, assumes that the tanks are perfect mixers. By inputting the sequential head grades and considering that no leaching has occurred, the head grade which corresponded to the tailings for each period could be estimated. Allowance is made for variations in feed rate over the sampling period by computing the average flow rate of slurry and thus the residence time of each increment of the tailings. This simple model and its application have been found to be subject to some limitations, which are discussed in the paper, resulting in some unresolved variability in results. However, for a typical circuit even the simple model was able to greatly improve consistency of recovery data with variations being approximately halved by eliminating much of the anomalous variation arising from the lack of correspondence between head and tail when changes in head grade are occurring. Therefore, this permits genuine variations in metallurgy to be identified with greater confidence and thus operational shortcomings can be identified and addressed more quickly.

Jan 1, 2006