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By A Gerson, S Miller, R Smart, J Thomas

Environmental Geochemistry International (EGi) and the Ian Wark Research Institute (IWRI) collaborated in a three-year Australian Minerals Industry Research Association (AMIRA) research project (Project Number P387A) focussed on the prediction and kinetic control of acid mine drainage. As part of this project, single addition, and sequential net acid generation (NAG) testing was carried out on sulfide mineral samples. The test samples comprised a range of synthetic waste materials prepared using a quartz bulk and controlled quantities of the commonly occurring sulfide minerals; pyrite (FeS2), pyrrhotite (Fe7S8), arsenopyrite (AsFeS), chalcopyrite (CuFeS2), chalcocite (Cu2S), covellite (CuS), bornite (Cu5FeS4), galena (PbS) and sphalerite (ZnS). NAG test results clearly show that there are significant differences between the acid forming potential of sulfide minerals. The NAG test results for each mineral were compared with theoretical acidity values (NAPP*). The NAPP* calculation was based on stoichiometric oxidation reactions assumed for each of the sulfide minerals. Sequential NAG values for pyrite corresponds closely to predicted NAPP* values, confirming the assumption that pyrite oxidation occurs according to the stoichiometry assumed. For the pyrite sample with 5 wt per cent S, two NAG stages were sufficient for all of the sulfur to be released to solution. Since sulfides in waste materials will generally be dominated by pyrite, results also confirm the validity of including NAG testing for ARD evaluation of most waste rock. NAG testing confirms that of the sulfide minerals examined, only pyrite, pyrrhotite, arsenopyrite and chalcopyrite are acid producing, ie able to produce leachate with a pH less than 4.5. In the case of sphalerite, galena, bornite, chalcocite and covellite the pH of the final NAG solution was greater than 4.5. The significant differences between the acid forming potential of different sulfide minerals could lead to overestimation of acid producing potentials based on NAPP values calculated from total per cent S alone, ie assuming all S is present as pyrite. The oxidation of galena during the NAG test resulted in the consumption of acid. The examination of the galena surface by X-ray photoelectron spectroscopy (XPS) after oxidation in peroxide solution indicated the presence of polysulfide. The reaction of sulfide to polysulfide is acid consuming, thus explaining the net acid consuming behaviour of galena in the NAG test. This reaction pathway may provide a possible explanation for the lower than expected acid production observed for some of the other sulfide minerals examined.

Jan 1, 2003

By J Kinal, P Steinier

A considerable volume of work exists in the literature examining the electrochemical interactions between grinding media and sulfide minerals. Broadly, most sulfide minerals are more noble than forged steel grinding media used during comminution, therefore a galvanic couple between the media and the sulfide mineral(s) exists, which increases the corrosion rate of the grinding media. The corrosion products of the grinding media, iron oxy-hydroxide species, invariably precipitate on to the surfaces of the sulfide minerals thereby affecting their floatability. This paper explores the science behind these corrosion reactions, and provides an explanation of their impact on the pulp chemistry of sulfide mineral slurries and subsequent flotation behaviour. A number of laboratory and plant case studies are used to illustrate the benefits of changing to a more inert grinding media.

Jan 1, 2005

By C Li

Removal of gangue minerals from ilmenite concentrates can be accomplished by relatively low temperature roasting in controlled gas atmospheres to selectively enhance the magnetic separation characteristics of the ilmenite. At roasting temperatures below 800¦C the magnetising reactions are often not consistent with phase equilibria considerations. Metastable phases can nucleate and control the roasting products. In weathered ilmenites the phase assemblages and microstructures in the altered ilmenite grains can influence the roasting reactions. In this paper we give an overview of the phase chemistry of chemically weathered ilmenites and of metastable phases formed by low temperature roasting. We also report the results of roast experiments conducted in a neutral gas atmosphere. Major increases in magnetic properties after short roasting times at low temperatures were obtained for a range of ilmenite concentrates. For example heating a secondary ilmenite concentrate from Western Australia for 15 minutes in nitrogen at 600¦C gave an increase in the three kilogauss magnetic fraction from three to 92 wt per cent. The solid state phase changes accompanying the inert atmosphere roasts were characterised by combining elemental analyses with quantitative phase analyses of the ilmenite concentrates and their roast products. It was found that the phase reaction that is principally responsible for the increase in the magnetic properties of weathered ilmenites involves a transformation of disordered ferrous-containing pseudorutile to an ordered ilmenite-hematite solid solution containing typically ten to 35 mole per cent of the hematite component. Examples are given of the application of the inert atmosphere roast to effect separations of ilmenite from gangue minerals.

Jan 1, 2001

By J Zhang, L Klemettinen, A Jokilaakso, J Biswas, J Partinen, H O’Brien, A Klemettinen

Waste lithium-ion batteries (LIBs) are important secondary sources of many valuable materials, including Critical Raw Materials (CRMs) defined by the European Union (EU): lithium, cobalt, manganese, and graphite. Additionally, LIBs typically contain nickel and copper, which are classified as Strategic Raw Materials for EU since 2023. In recent years, great effort has been made to develop efficient recycling processes for waste LIBs. Pyrometallurgical processes have been essential in industrial production of metals for many decades. These technologies are relatively mature, with high adaptability for different raw materials. Pyrometallurgical treatment in LIB recycling typically involves the use of smelting processes, in which waste batteries are heated above their melting points and metals are separated through a reduction reaction in the liquid phase. Through this recycling route, cobalt, copper, and nickel can be efficiently recovered in the form of a metal alloy, whereas lithium and manganese are lost in the slag phase. The goal of this work was to increase the recoveries of valuable battery metals through a combination of hydro- and pyrometallurgical unit operations. First, industrial Li-ion battery scrap underwent a selective sulfation roasting stage, where the aim was to transform LiCoO2 and Mn-oxides into Li, Co and Mn sulfates. After roasting, the battery scrap was leached in distilled water with a solid to liquid ratio of 100 g/L at 60°C and recovered 95 per cent of Li, 61 per cent of Mn and 35 per cent of Co. After leaching, the solid leach residue was mixed with industrial Ni-slag and biochar, followed by reduction at 1350°C in argon atmosphere. The high-temperature smelting experiments were conducted as a function of time (5–60 mins) to investigate the reduction behaviour of battery metals. The results show that Co and Ni from the slag and leach residue can be efficiently recovered in the slag cleaning stage.

Jun 19, 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 Trudinger JP

Mt. Newman Mining Company Pty. Ltd.3 oper ates the Mt. Whaleback iron ore mine in the Ham- ersley Iron Ore Province of Western Australia. The present rate of production of high grade hematite iron ore is 33 million tonnes per year. Mining is by open cut quarrying,with 15m high benches. The present quarry operations will be extended to a large oval pit to win over 1400 million tonnes of iron ore. The pit slopes will extend up to 500m in depth and the perimet- er of the slopes will exceed 15km. Sixty per- cent of the ore is below the water table, which presently lies 45m below the general plain level Dames & Moore, rock mechanics consultants designed the pit slopes during early mine devel- opment to ensure an economic and safe operation.

Jan 1, 1975

By Booth GW, Robertson IG

The Paddington Gold Mine ties within the Norseman-Wiluna greenstone belt, in the celebrated Eastern Goldfields province of the Yilgarn Block, Western Australia. Regionally, tropical to subtropical weathering has effected development of a prominent regolith and a deep lateritic profile. Detailed examination of the clay mineralogy, largely from a single drill hole which traversed the original Paddington I deposit, outlined three separate, vertically gradational assemblages, which are, in part, rock-type dependant. These include; 1. kaolinite with minur to trace quantities of sericite/illite (0-22m), 2. smectite and/or interstratified clay minerals, together with variable amounts of kaolinite, relic chlorite and illite/sericite (22-81m), and 3. chlorite and sericite (> 81m). Near surface, kaolinitic assemblages may be directly correlated with the intensity of lateritization, whereas smectite and interstratified clays from intermediate zones appear in association

Jan 1, 1989

By F Saloojee, F K. Crundwell

Refractory ores need to be pretreated prior to cyanide leaching for acceptable gold recovery. Pressure oxidation is one method of rendering the ores more suitable for cyanidation. The focus of this work is optimisation of autoclave configuration for pressure oxidation. An autoclave for the pressure oxidation of a feed containing pyrite and arsenopyrite was modelled, using the population balance framework. The autoclave model takes into account feed particle size, reaction kinetics and retention time. Mass balance calculations were incorporated into Cycad Process« software. This allowed for the investigation of different circuit configurations. The base case model consists of a single autoclave. The feed was then doubled and additional autoclaves were added to provide the same residence time as the base case. Four different configurations for the additional equipment were simulated. These were parallel, series, series with inter-stage thickening and parallel-series circuits. The options are compared in terms of extraction and productivity. The parallel circuit behaves similarly to the base case. The series and series-parallel circuits have higher recoveries and productivities than the base case. The series circuit with inter-stage thickening provides the highest extraction and productivity. This is because the thickening reduces the slurry volume and increases the residence time of the solids in the downstream autoclave.CITATION:Saloojee, F and Crundwell, F K, 2013. Optimisation of circuits for gold pressure oxidation, in Proceedings World Gold 2013 , pp 181-188 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By M Gill, A Mathias

The mining industry has always been cost-focussed but in recent times mining companies have moved towards obtaining a competitive advantage through the implementation and sustainability of best practice in the areas of improved safety, operating costs, quality and productivity. This is the concept of Value In Use û that mining companies see value generated all the way to the bottom line through improved change, and those changes become an established mine practice. Many mining companies do not have the resources or the knowledge to sustainably achieve such an outcome. This has led to companies looking to their suppliers to deliver measured value to their business through partnership arrangements. Suppliers have been able to leverage their knowledge of products, product applications and services to offer alternative supply agreements that bring greater returns to their businesses while improving supplier/client relationships. Orica has developed such a partnership with Coal & Allied in the form of a Continuous Improvement Program. Coal & Allied is based in the Hunter Valley region of NSW and is the largest coal producer in that region. Both parties are contractually bound to jointly deliver Value In Use projects to Coal & AlliedÆs Hunter Valley Operations and Bengalla mine sites. It is the request of the Orica and Coal & Allied Steering Committees that this paper does not include the details of actual projects or the costs or key performance indicators associated with the program. This is to maintain the competitive advantage to both Orica and Coal & Allied through the implementation of such a program. It is in the writersÆ opinion that this paper does not lose any significance through this restriction as the most important component of the Continuous Improvement Program is not the projects themselves but the methodology behind them. With this in mind the paper will discuss the development of Value In Use offerings, the key aspects of the Coal & Allied and Orica joint program, what is a Value In Use project, how to measure its value, finally why and even more importantly what makes this program is a success.

Jan 1, 2004

By S E. Box, J L. Mauk

The Middle Proterozoic metasedimentary rocks of the Belt Supergroup contain important metallic mineral deposits like the diagenetic sediment-hosted stratiform copper mineralization, including the Troy (Spar Lake) deposit and the epigenetic hydrothermal veins in the lower Belt and Ravalli Group in the Coeur d'Alene district. Magnetite (Fe3O4) is a common and widespread accessory mineral in these rocks and can have multiple origins including ore stage in deposits, mobilization stage in source rocks, metamorphism of red beds and alteration mineral in thin halos enveloping Ag-rich veins in the Coeur dÆAlene district. As shown in several classic studies, the composition of magnetite from igneous rocks varies significantly in response to controlling factors such as melt composition, temperature, silica activity, and oxygen and sulphur fugacity. Therefore, the distinctively different geologic settings within the Belt Supergroup strongly suggest that there may be differences in the magnetite compositions. However, initial microprobe analyses detected no variation in magnetite composition.   Three possibilities may give an adequate explanation for these initial results: 1.      the magnetite formed primarily as pure Fe3O4, 2.      one or more tectonothermal events led to regional scale re-equilibration that affected all rocks in the field area, and 3.      the variations in the composition are below the detection limit of the microprobe.

Jan 1, 2007

By D Tuazon, M Powell, M Ziemski, G D. Corder

Although mining companies have made broad corporate-level commitments to adopt sustainability, there continue to be problems when attempts are made to adopt higher-level sustainability aspirations and translate them into appropriate targets and methods at the more-specific operational level. The integration of sustainability principles into minerals processing operational decision-making processes has unique challenges that are not addressed adequately by current tools and methodologies, yet impacts from operational decisions can have longer-term effects realised at closure and rehabilitation.This paper describes a proposed methodology to achieve the integration of sustainability at the operational level through a systematic and rigorous process of identifying and qualifying sustainability issues and opportunities in an operation. The methodology, starting from a sustainability point of view rather than an operational one, guides the identification of process issues and opportunities by examining the operation, unit-by-unit, similar to a Hazard and Operability (HAZOP) process. Each issue or opportunity is qualified according to its measurability, scopes of impact and consequences so that it may be understood fully and the correct engineering problems are formed. Through improved decision-making to account for broader sustainability factors, operations can better address environmental and social expectations and pressures (both corporate and community, as well as immediate and in the longer-term), whilst still delivering on operational and business goals.The methodology has been tested with two case studies at minerals processing operations. At one site, the methodology identified a dust issue which had considerable business risks (loss of valuable product) compared to conventional engineering analysis processes. The other site also benefited from using the methodology as an opportunity to improve the operation of the milling and flotation circuits was identified. The opportunity not only showed a potential to improve operational efficiency, but also potential improvements in water and energy efficiency and a resulting increased resilience against water and energy supply risks. It was important to utilise the holistic approach of the methodology in the identification of opportunities at this site; the goals of the operation showed a strong coupling between water and energy issues which would be difficult to overcome using the operationÆs current organisational model, which deals with such issues separately of each other.CITATION:Tuazon, D, Corder, G D, Powell, M and Ziemski, M, 2012. A practical and rigorous approach for integrating sustainability principles into decision-making processes at minerals processing operations, in Proceedings Life-of-Mine 2012 , pp 233-242 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By M I. Pownceby, N Karimian, J R. Manuel, M J. Peterson

The CSIRO ore classification scheme for Pilbara ores was used as a reference frame to target recognisable ore types/textures with potentially elevated phosphorus content for detailed analysis. Particles of each individual ore texture were separated from a Brockman high-P ore and each class was characterised using methods including XRF, XRD, EPMA and synchrotron-based XAS. Results were then correlated with optical microscopy and hand specimen identification to establish any relevant associated mineralogical phases and/or textures. This represents a more systematic approach to identification of high-P ore components based on particle and goethite type and texture. The information can then provide the basis for more targeted P-removal strategies factoring in the relationship between particle/ore texture and phosphorus deportment

Sep 18, 2023

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

Times are changing for the mining industry. Civil society is demanding that miners pay more attention to the ways they impact on, and engage with, communities around their mines. Miners, in turn, are being forced to adapt and learn new social skills for which they were not originally trained. They are doing so in the middle of a broad resources boom, which is adding short-term operating challenges at the same time as miners need to be developing thoughtful solutions to longer term community issues. This paper examines a number of the issues that now loom on the horizon of mining companies. These include: human resources challenges and the crisis in minerals education; continuing community and social expectations of the resources industry and the impacts they will have, for example, on product stewardship, greenhouse gas emissions and the use of increasingly precious water resources; and current impediments to mineral exploration spending.It is concluded that the greatest challenge for the minerals industry is to develop a stronger cadre of local leaders and for the larger global miners to empower their local management to take on stronger public leadership responsibilities. There is a need for executive leadership to remember both the longer term and shorter term cyclical nature of the mining industry in developing solutions to community problems. Above all there is a compelling case for mining industry leaders to be more actively engaged with the wider community in the resolution of these issues.

Jan 1, 2005

By Morsky P, Kalapudas R, Natunen H, Virtanen M

The development of autogenous grinding modification in Outokumpu, known with the name 'Outogenius Comminution', was 'reversed'. At first the metallurgists studied and tested tens of years autogenous grinding in detail in full scale circuits at the concentrators of the company. After the final solution already had been found, also a pilot plant was built and now finally, research work is under way to develop a special laboratory method for testing the suitability of ores for 'Outogenius Comminution'.

Jan 1, 1993

By T Gartner

This paper describes the design, manufacture and site services associated with the supply of mine hoists for the new mine under construction by Falconbridge Limited in Ontario, Canada. Two new shafts are being sunk, and the hoisting equipment at each shaft can be summarised as follows: Ventilation shaft:4.66 m diameter double-drum second-hand hoist, originally in operation at San Manuel Mine, Arizona, to be used as the shaft sinking hoist. The second-hand hoist presented a challenge in that during its previous life, the hoist had been intensively operated during service at San Manuel Mine, and this paper describes the scope of refurbishment work undertaken, both electrically and mechanically, to ensure future reliable operation, together with the requirement to meet Canadian and Ontario regulations and codes of practice. 3.05 m diameter new single drum auxiliary hoist to be used as a second means of egress. Main shaft:4.57 m diameter new double-drum hoist to be used initially as the shaft sinking hoist, and subsequently to be converted to the equivalent of a single-drum multi-rope hoist for service duties during the production phase; 5.49 m diameter new double-drum hoist to be used for skip hoisting during the production phase; and 3.05 m diameter new single drum auxiliary hoist.The new hoists are all designed to comply with SABS requirements such that hoisting with reduced rope safety factors will be possible in the future. This paper describes the principles involved both mechanically and electrically. Particular attention is paid to the conversion of the main shaft service hoist from a double-drum sinking hoist to a multi-rope hoist.This paper describes the ac electrical powertrains (drives and motors) used that eliminate the need for harmonic filters and reactive power compensation equipment since they exhibit no negative effects on the utility electrical network system. This paper describes the logistical challenges of installing, commissioning and setting to work a series of five hoists in a short time frame.

Jan 1, 2005

By J Tien, J Huang, N Haque, M O’Brien

Coal preparation is an integral part of producing coal for thermal powerplants and metallurgical processing plants. Coal processing plants use various unit processes to separate gangue and ash content from mineral coal, thus increasing the specific energy content.A flow sheet and a simulation model was established for a typical coal processing plant using Microsoft Excel. This model used the mass balance and split factors for run-of-mine (ROM) coal, tailings and water usage from a typical, generic coalmine.The common method of coal preparation initially involves several stages of crushing to reduce the size of coal. It is then sent to the processing plant for further washing. The typical method in Australia for coarse coal material processing is the use of dense medium cyclone (DMC) (Kininmonth and Baafi, 2009). Flotation cells are used for processing of fine coal. The fine products are utilised for coking coal only. In our case study, the intended coal product is for thermal powerplants. Therefore, the fine coal processing utilised spirals instead of flotation, which is typical for the industry.CITATION:Huang, J, Haque, N, O'Brien, M, O'Brien G and Tien, J, 2016. Development, simulation, economic and environmental evaluation of a coal processing flow sheet, in Proceedings Life-of-Mine 2016 Conference , pp 48–51 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By D E. G Connelly, K Y. Wong

Gold at the Harbour Lights Mine (HLM), WA occurs principally in pyrite (Py) and arsenopyrite (AsPy) minerals rendering it inaccessible to direct cyanidation. Froth flotation produces a concentrate with low mass recovery and with high recoveries of sulfides. After investigating several alternatives, a novel flotation process has been developed to separate the concentrate into pyrite and arsenopyrite rich fractions. The pyrite fraction is finely ground and cyanide leached, while the arsenopyrite is treated off-site. This paper describes the separation process from laboratory bench scale through to commercial operation at the HLM gold plant.

Jan 1, 2005

By H Fukaya T Miki, J Gamutan

Molybdenum disilicide (MoSi2) is a promising material for thermal applications due to its excellent heat and oxidation resistance. It can operate at temperatures of up to 1800°C as furnace heating elements and protect refractory metals such as molybdenum from rapidly reacting with air to form volatile molybdenum oxides at elevated temperature. In this work, the feasibility of forming MoSi2 on a molybdenum substrate by hot dipping in a silicon-saturated molten metal bath was investigated. This method is simple, predictable and can be used to coat large components and complex parts. It was found that tetragonal MoSi2 can be successfully synthesised on the surface of the substrate after dipping for 15 mins at 1000°C using molten tin (Sn), bismuth (Bi) and copper (Cu) baths. The growth of the MoSi2 layer was fast within the first 15 mins and then gradually slowed down with time. After dipping for 60 mins at 1000°C, the thickness of the MoSi2 layer were measured as 441.5, 19.5 and 13.1 μm for the copper, tin, and bismuth baths, respectively. The MoSi2 coating synthesised in this study provided oxidation resistance at 1150°C by forming a protective SiO2 layer on the surface. The SiO2 layer prevented the sample from rapidly oxidising by inhibiting direct contact between the molybdenum substrate and oxygen in the atmosphere. Compared to conventional methods, the proposed hot dipping method produces a MoSi2 layer more rapidly and at much lower operating temperatures. This makes it a more attractive option for coating large and complex components, with the potential to enable the use of MoSi2 in a wider range of applications.

Jun 19, 2024

Citigold Corporation operates the Warrior gold mine at Charters Towers, northern Queensland, mining narrow quartz veins (0.1 to 2 m wide) in granodiorite by long hole open stoping on levels 15 m apart. Access is by decline and cross-cuts with on-ore development drives. The mineralisation comprises Palaeozoic mesothermal quartz veins containing gold, pyrite, sphalerite and galena, hosted by the Ordovician age Towers Hill Granite. The gold grain size is variable from 1 to 500 ¦m with 1 m face samples up to 800 ppm Au, and average run-of-mine grades of 10 to 14 ppm. Despite the spectacular gold tenor, little visible gold is present. Gold grades are highly variable presenting challenges in ore reserve estimation. Tonnages are discounted by 70 per cent to allow for the low payabilities (30 to 50 per cent) of the veins. Estimation techniques allow high confidence in overall global grade estimates but poor reliability on a local scale (25 m). Kriging ranges as low as 5 - 8 m means that obtaining a Proved Ore Reserve by diamond drilling is not economically feasible, and broad-scale mine planning decisions are made at the Inferred Mineral Resource stage and mine design work at the Probable Ore Reserve stage. Proved Ore Reserves can only be estimated after underground development has proceeded through the mineralised body with levels at 15 m vertical spacing sampled at 2 - 3 m intervals along the level. However, reconciliations between actual gold produced and earlier resource estimates produce workable results. A further three mines are scheduled to be developed underneath the city of Charters Towers.

Jan 1, 2008