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By A B. Christie, F P. Bierlein

Lode gold deposits of the Western and Eastern provinces, South Island, New Zealand , formed as a part of the Cordilleran-style tectonism during Tasman/Tahua and Rangitata orogenesis along the Paleozoic-middle Mesozoic southern Gondwanan margin. These deposits, hosted by lower grade greenschist facies sedimentary rock sequences of the Buller, Takaka, Torlesse, and Caples terranes, universally show geological features that are consistent with the orogenic gold deposit model, and genetic features are generally suggestive of a metamorphic origin, with the possible exception of a magmatic fluid source for the mineralisation at Sams Creek. However, ore fluid chemistry in Mesozoic deposits of the Eastern province, particularly the low concentration of non-aqueous volatiles and the very dilute nature of the fluids, is uncharacteristic of most orogenic gold deposits; this must be explained by either a unique fluid source or fluid type, which we believe unlikely, or an unrecognised significance of relatively rare gas-rich fluid inclusions in the deposits. Absolute age data for gold deposits in both provinces remain equivocal, thus hindering definition of the exact temporal relationship between ore formation and terrane accretion, regional metamorphism, and magmatic arc emplacement. Mercury and antimony occurrences in subgreenschist grade parts of the Haast Schist may target the upper levels of unrecognised orogenic gold deposits. If low-grade, high-tonnage intrusion-related gold systems occur on the South Island, then they are most likely to be discovered in association with the small molybdenite-, scheelite-, or cassiterite-bearing quartz stockworks spatially related to the Karamea and Median batholiths.

Jan 1, 2005

By Stevenson I, Dickinson W, Taylor R. N

Despite flash smelting's widespread use little is known about the actual processes taking place in flash furnace shafts and comparatively few reports of sampling campaigns have appeared in the published literature. his paper reviews the previous reports of the use of horizontal trough samplers and analyses their expected collection efficiency. In the light of the deficiencies revealed by this analysis an isokinetic sampler was produced and a vertical sampling technique was also developed to obtain samples from directly below the burners in the shaft of the flash furnace at the Kalgoorlie nickel smelter. Comparison of the sizing of the samples obtained with the horizontal trough and isokinetic samplers confirmed the theoretical analyses and showed that the trough samplers were not collecting the fine particles. Besides providing data to validate mathematical models of the burners and shaft, chemical analyses of the shaft samples showed that the coal in the charge was reacting preferentially and that the plume of at least one of the burners was being deflected from its axial position. In the region directly below the burner there was evidence that the disperser on the burner was imparting more momentum to the coarser particles and that these were concentrating in the outer regions of the particle plumes issuing from the burners.

Jan 1, 1992

As Pliny commented two millennia ago, The only certainty is that nothing is certain. Despite the many breakthroughs, advances and promises, the way we each live and work remains awash with technological, economic and political uncertainty. The resources sector is no exception in this regard. Mining itself is much more than a complicated process or recipe; it is a complex adaptive system. The way we adopt and adapt new technologies, the way we evolve data into corporate wisdom, the way we make decisions and even the way we view our concept of rationality should each be the subject of intense review. Translating these sentiments into sustainable company growth is indeed the challenge. This is unlikely to be achieved within convention, but through innovation. The game is changing!

May 1, 2010

By Fradd WP

South Australia pioneered metal mining in Australia and was the main source of copper for several decades. Gold discoveries and mining also contributed significantly to the development of the Colony. Across the State can be seen the holes, the mullock heaps and, in some instances, the remnants of machinery of the past era. In this, the centenary year of the discovery of the Teetulpa goldfield, considered by some to he the most significant discovery of gold in the State, it is appropriate that we should present a paper on the history of gold mining in South Australia. South Australia has not been a major producer of gold with recorded production a little in excess of 15 million grams (15 t). This represents about 0.25 per cent of the Australian total and ranks last of the States of the Commonwealth. The outstand- ing feature of gold production in South Australia has been the succession of short periods of rela- tively high production immediately following a discovery, with payable dirt being quickly exhausted, a fact clearly illustrated by the graph of South Australian gold production (Figure 1).

Jan 1, 1987

By P Moser, P Schimek, F Ouchterlony

This paper summarises the findings of 27 model-scale bench blasts in magnetic mortar, which were conducted from 2011 to 2014 at the blasting site of the Montanuniversitaet Leoben.The aim of the study was the investigation of the influence of blasthole delay times in small-scale bench blasts on the face characteristics and cracking damage created in the surrounding rock, which affects the fragmentation in subsequent rows.The test specimens or blocks, which were produced out of magnetite concrete, were roughly 1:100 in scale to normal bench blasts. The confinement of the testing blocks at the sides and back ensured the similarity to normal bench blasts with regard to the wave transmission into the surrounding rock. The specimen contained three or four rows with five blastholes each and were shot row by row, with virgin (undamaged) material in row 1 and increasingly damaged or preconditioned material in the following rows.The tested delay times varied between 0, 28, 73 and 140 µs, which corresponds to 0, 0.4, 1.0 and 2.0 ms/m of burden.The evaluation of the material properties showed that the use of magnetite concrete eliminated the inhomogeneous behaviour of rock, but some unexpected differences of the individual production cycles were still detected.The characteristics of the bench after each blast was evaluated along three horizontal lines out of a 3D model of the bench face. The tested delay time sequences of the virgin (first row) and single preconditioned blasts (second row) produced more overbreak for longer delays, while the third-row shots resulted in a smoothened surface independent of the chosen delay.The introduced damage after every blast was evaluated by an observation of irregularities on the newly blasted bench face. The visible cracks at the top of the testing blocks were documented and divided into several crack families according to their angle, length and origin. The remaining block was broken out of the blasting site after blasting, cut into several horizontal and vertical slices and dye penetrant spray was used to visualise the cracks created. Some of the detected crack families showed an influence of the delay time. The calculated mean crack density and mean crack intersection density showed that longer delays resulted in a higher degree of damage.The fragmentation results were well reproduced by the basic three-parameter Swebrec function. The observed improvement of fragmentation in the second- and third-row blasts was linked to the preconditioning of the burden for the following row while blasting the actual row. With the exception of the simultaneously initiated blastholes, the blasts showed coarser fragmentation for the shortest delays, while the longest delays generated the finest fragmentation.CITATION:Schimek, P, Ouchterlony, F and Moser, P, 2015. Influence of blasthole delay times on fragmentation as well as characteristics of and blast damage behind a remaining bench face through model-scale blasting, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 257–266 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

The introduction of a new mining method to Australia is not without its risks and challenges. This paper discusses the processes of planning a new operation, with particular emphasis on block caving and its Northparkes adaptation. As well as applying advanced technologies, here also is the opportunity to develop the art and science of block caving for its application to a wider range of geotechnical conditions than previously Envisaged.

Jan 1, 1995

By E M. Wightman, C L. Evans

A recent survey of mineral processors undertaken as part of the International Mineral Processing Council (IMPC) Education Commission identified mineralogy as one of the key skills required for mineral processors (the other key areas being comminution, flotation, physical separation, sampling and extractive metallurgy). Past experience in a number of operations has shown what can be achieved when the data outputs from mineralogical tools are coupled with people with the right skills who can transform the data into actionable information. This paper reviews what has been done successfully in plant operations over a period of more than four decades and gives examples of a range of applications with both long and short-term objectives. The examples demonstrate the usefulness of mineralogical data – both basic and complex – in optimising mineral processing operations, whether the data are applied in a simple analysis or in more complex modelling. Similarly, the examples show the range of options available for operations to access the mineralogy information they need – through in-house experts and equipment based in centralised technology centres, through on-site equipment and experts or through external laboratories and consultants.The examples from industry highlight the huge potential benefit of including mineralogy as an integral part of operational best practice and raise the question of why more operations do not utilise what should be readily available data. Successful application of mineralogical data requires skilled people to generate relevant data of the required quality, together with skilled people to interpret the data (this may be the same person). And, as in any project, corporate recognition of the value of this approach to best practice is required to ensure continuing support. With fewer university courses providing courses in process mineralogy to undergraduate mineral processing engineers and chemical engineers, there is an increasing lack of knowledge about what mineralogical information is needed, how to get the required data and, equally importantly, how to turn the data into useful information.CITATION:Evans, C L and Wightman, E M, 2018. Understanding minerals in mineral processing – the basics and beyond, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 363–376 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

The minerals industry focus over much of the past twenty years has been on cost reduction and production growth supported, but not driven, by technology improvements. Mergers and acquisitions, and the demands of financial markets, have been high priority items whereas research and development and technology based innovation have received less attention and have been cut back in many companies. Technology improvements will be critical if the industry is to make progress on the stated aims of improving energy efficiency, reducing water usage and maximising recovery from deposits. They will also be important for improving capital efficiency and in treating difficult deposits. However the role technology based innovation will play both in the overall industry, and within individual companies, during the next decade is quite uncertain. There are major challenges in progressing technology based innovation in an industry with limited technical resources which is dominated by long life high capital operations. Specific opportunities for energy and productivity improvements exist but face significant technical and structural barriers that need to be overcome if the industry is to significantly improve performance. Current evidence suggests that changes in approach will be needed for these improvements to be realised. Recent studies in the United States and Canada have highlighted the wide range of energy performance across the industry and the scope for marked improvement from both incremental improvements and increased research and development. Comminution, material transportation and underground mine ventilation were identified as high priority areas. Opportunities within these areas are discussed both in respect of specific technologies and in how they may change performance. The role of open innovation as a source of new technology is also discussed. This is an abstract only. No full paper was prepared for this presentation.

Sep 13, 2010

By G R. F Alvear Flores

Mineral resources are becoming more complex in composition and structure making it more difficult to produce clean concentrates for primary metal smelting. In parallel, providing technological solutions to the recycling and recovery of end-of-life materials is becoming more important in moving towards the goal of increasing circularity. The availability of fundamental thermodynamic data and advanced thermodynamic tools greatly assists in evaluating these complexities and their impact on existing and new processes. In addition, it is fundamental to support the economic performance of smelters. This paper describes several examples on how fundamental work can be applied to industrial processing..

Jun 17, 2024

By J Vann

Mineral Resource and Ore Reserve estimation is a challenging and demanding field, requiring application of professional knowledge, skill and experience of the highest order. If the many potential pitfalls are to be avoided, however, there are two other requirements which are of equal, if not greater, importance:good communication, and common sense. Estimation of Mineral Resources and particularly of Ore Reserves is almost always a team effort, involving a number of disciplines. Good teamwork requires good communication, both between team members and between the team and other parties having an interest in the process. Breakdown in these lines of communication can have far reaching effects on the project under consideration. The need to use common sense during a Resource or Reserve estimation exercise would seem to be self-evident. It is surprising, however, how often rigid adherence to procedures and methods prevails at the expense of clear thinking, usually with adverse and sometimes fatal effects on the project under consideration. This has become increasingly true as computerised methods have assumed a central role in Resource/Reserve estimation. The critical question that estimators should ask themselves at all stages of the process is: æIs what is being done sensible given the data available, what is known of this deposit and the purpose of the exercise?Æ

Jan 1, 1999

By R J. Cuttler

In January 1998 Sydney Water Corporation formed an Alliance with construction contractor Transfield, and engineering consultants Connell Wagner and Montgomery Watson, to design and construct the Northside Storage Tunnel. The project is part of WaterPlan 21, Sydney WaterÆs strategy for cleaning up the harbours, bays, rivers and beaches within its business area. WaterPlan 21 is an integral part of the NSW GovernmentÆs $3.1 billion Waterways Package which establishes targets and initiatives for sustainable wastewater management within NSW. The project is being delivered under an Alliance Agreement, which has a number of non-traditional features in terms of partnering, management principles and design and construct. Construction began in mid-1998 and is on target to meet the completion deadline for the Sydney 2000 Olympics.

Jan 1, 1999

By F Shi, W Huang, D Seaman, K Runge

High Voltage Pulse (HVP) technology is a novel process that could potentially be the step-change needed in ore processability in the mining industry. The propensity of high voltage pulses towards mineral-enriched ore particles during treatment makes this technology selective and has the potential to enable ore pre-concentration by size separation. In this study, the potential for pre-concentration of a low grade copper-gold ore sample subjected to HVP pretreatment is investigated and compared to that achievable after mechanical breakage in JKMRC’s rotary breakage tester (JKRBT). The data show that a better pre-concentration result can be achieved after HVP processing than conventional breakage. The gold pre-concentration potential is much better than that observed for copper. 4D HVP pre-concentration characteristic curves were produced to assess the metallurgical performance possible as a function of energy input. The case study shows that when targeting a nominal metal recovery of 90 per cent for gold, the HVP pre-concentration technique can split the low grade ore (0.9 ppm gold and 0.28 per cent copper in the feed size 26.5-37.5 mm) into two components – a low grade oversize material (0.3 ppm gold and 0.15 per cent copper) and a high grade undersize material (1.0 ppm gold and 0.3 per cent copper). The mass split to the low grade is 23 per cent. Under this mass split scenario, gold recovery to screen undersize is 90 per cent and copper recovery is 85 per cent. The HVP treatment of this feed size requires a specific energy (spark) of 2.8 kWh/t.There is further research that would be required before industrial uptake of the HVP pre-concentration technology would be possible. This paper also outlines the research challenges that need to be overcome.CITATION:Huang, W, Shi, F, Antonio, C, Runge, K and Seaman, D, 2018. High-voltage pulse pre-concentration study using a low-grade copper-gold ore, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 327–338 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By D Genge, E Martin, T Goswami, M Rothery

Rio Tinto’s Hunter Valley Operations is a large open pit coalmine situated in the heart of the Hunter Valley in Australia. The Riverview West Pit has faced increasing production challenges in recent times due to decreasing dragline strike lengths and increasing environmental constraints on vibration, overpressure and fume generation. Conventional mining techniques would involve five to six production blasts per strip to recover multiple coal seams. Each blast event carries the risk of exceeding the strict environmental requirements. By working collaboratively with Orica, it was realised that the blasting method known as Stratablast™, in conjunction with advanced computer modelling techniques, could provide productivity gains whilst simultaneously providing more control over the environmental effects and the impact on nearby infrastructure.As a result of this change, the number of blasts per strip was reduced to one, with the implication that a great deal of care and forethought was needed to manage the increased challenge posed by multiple constraints in the proposed mining area. This innovative approach of combining throw and stand-up blasts allowed the extraction of all major coal seams in a single pass blast event. The blasts were initially designed with a large factor of safety to stay within environmental limits as they were over 1.1 km in strike length, with more than 800 holes and with a total charge weight of about 1000 t of bulk explosives. Furthermore, there were conflicting priorities around the desired blast outcomes. So far, 11 such blasts have been designed and successfully fired. After each blast, innovative design changes have been iteratively implemented to provide further control over environmental impacts, whilst continuing to improve productivity. As a result of these changes, blasts have progressively increased in complexity with the inclusion of features such as damage zones, mid-splitting, time gaps and different directions of firing. The consequence of this complexity is that the blast duration can be as long as 28 seconds to accommodate all components of the blast.This project has increased the productivity of the Riverview West Pit through blast design improvements and allowed the environmental impacts to be managed with far more control and predictability than would have been possible under a conventional blasting regime. There still remains room for further optimisation of mine productivity and this is being addressed through a process of continuous improvement.CITATION:Goswami, T, Martin, E, Rothery, M and Genge, D, 2015. A holistic approach to managing blast outcomes, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 645–654 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

The words ""Uncertainty"" and ""Risk"" pervade every discussion about mining exploration and investment. Perhaps these terms are subjectively understood by industry professionals, but objective portrayal of these concepts outside the industry is a woefully undeveloped science. This paper addresses current industry understanding and practice regarding quantitative risk assessment techniques, and provides examples of the application of three of these techniques. Probabilistic techniques for financial risk assessment are valuable adjuncts to conventional financial analysis, and address a range of issues not assessable by any other means. The value of whole-of-project probabilistic risk assessment is currently debatable for decision-making purposes, but is seen as important as a mechanism to focus attention to the critical issues that ultimately impact on project success. The dissection of project capital into risk and non-risk components provides valuable insights into risk characteristics not readily quantifiable in any other way. This technique also provides a framework for more objective ""what if?"" scenario evaluation and for the capital structure of resource projects. Finally, mechanisms for the valuation of undeveloped reserves are examined, and guidelines suggested. The importance of reliability in production cost estimates is highlighted and the impact of early development on reserve valuations is discussed. The importance of economics throughout all stages of the evaluation process is fundamental.

Jan 1, 1994

By Johnson M. W

Factual data about the sedimentation in the Newcastle Coal. Measures are presented. Data concerning the total coal measure sequence (isopachs, sand /shale ratio and total coal thickness variation), data about three coal seams (Borehole, Dudley and Victoria Tunnel) and data about interseam con- glomerate units are discussed. From this data conclusions are drawn about the coal measure environment. The western edge of the coal basin, the Lochinvar Dome, although a high feature was apparently stable during coal measure time. Despite its height it apparently supplied little sediment to the basin. The northern and north-eastern edge, which was unstable, suppl- ied most of the coarse detritus including the conglomerates to the basin. The conglomerates show patterns of fluvial origin but after a period of "normal" variations in pattern they become restricted to two parallel zones evidently tectonically controlled. Deposition of conglomerates is episodic and separated by periods of coal formation when deformation was apparently slight. Formation of each of the three seams considered followed a rather similar pattern - each shows development of thick coal around the basin edge and poor thin coal in the "axial" region of the present synclinal structure. Evidence of in-situ formation of some areas of the seams is discussed and periodic deformation of the basin during coal measure time is postulated.

Jan 1, 1969

By R J. Goldfarb, A B. Christie, D I. Groves

Small orogenic gold deposits have the same deposit-scale geological and geochemical features as those that characterise giant orogenic gold systems (>16 Moz Au). Therefore, a broader-scale approach is needed to identify the critical controls on giant deposits and their disproportionate distribution throughout time and space. Ages of giant gold systems cluster around well-defined periods of lithospheric growth at continental margins, and it is orogen-scale processes during these Late Archaean, Early Proterozoic and Phanerozoic times that determine gold endowment of a province.   A critical factor for giant orogenic gold provinces appears to be asthenospheric upwelling at the time of gold mineralisation to most effectively transfer the thermal energy required to initiate and sustain high hydrothermal fluid flux. The extent of this fluid flux should be related to thickness of the lithosphere beneath a province at the time of gold mineralisation, such that giant gold deposits are much more likely to develop in orogens with oceanic or thinned continental lithosphere. A proxy for the latter is likely to be a short premineralisation crustal history such that thick subcontinental lithospheric mantle was not developed. Conversely, orogens with protracted premineralisation crustal histories are more likely to have a thick subcontinental lithospheric mantle, which is difficult to delaminate and, hence, such provinces will normally be poorly endowed. The nature of the lithosphere also influences the intrinsic gold concentrations of potential source rocks, with back-arc basalts, transitional basalts and basanites enriched in gold relative to other rock sequences. Thus, segments of orogens with thin lithosphere may be defined by conjunction of giant-scale fluid flux through gold-enriched sequences.   Although the nature of the lithosphere plays the crucial role in dictating which orogenic gold provinces will contain one or more giant deposits, the precise siting of those giants depends on the critical conjunction of a number of province-scale factors that control fluid conduits, traps, and seals in tectonically and lithospherically suitable terranes within accretionary orogens.

Jan 1, 2005

By Ovchinnikov YN, Novikov VS, Spirin NA, Babushkin NM, Mysik AF, Shcherbatskii VB, Kukarkin AS

Laboratory investigations were carried out to determine the resistance coefficient of the flow through beds irrigated with wetting and non-wetting liquids. A formula was obtained which may be used to evaluate the resistance of the irrigated packing. Quantitative investigations were also carried out on operating furnaces at Magnitogorsk. Continuous measurements of the lower pressure drops were made under different furnace conditions. Pressures were measured in the tuyere space and the bosh region. A significant transient behaviour of the pressure drop was observed in the irrigated zone as a function of the accumulation of the liquid phase in the bosh region as smelting progressed. Additionally, transient processes were also investigated in the upper furnace zones. The basic cause of the transient behaviour was shown to be the irregularity of burden descent caused by the casting cycle. It was shown that the rate of burden descent between consecutive casts reflects fairly accurately the accumulation and drainage of the liquid products as a result of which heat transfer, reduction and aerodynamic processes assume transient character. In practically all cases of casting a decrease in blast pressure and that over the furnace height of 0.2 kg/cm2 was observed. The analyses of radial gas composition at the stock line showed that compositional variations connected with the casting cycle are most pronounced in the central and peripheral regions, whilst in the intermediate regions the conditions are relatively stable. Calculations show that as casting progresses there is a decrease in the gas flow rate at the periphery and an increase in the centre of the furnace. The transient nature of the aerodynamic processes in packings revealed the existence of an appreciable reserve capacity. Elimination of transience was tested on the furnace at Magnitogorsk and improved operating and economical furnace parameters obtained.

Jan 1, 1975

Recovery of gold by smelting zinc dust concentrate has been carried on at Lake View and Star, Ltd., since July, 1930, when the Merrill-Crowe precipitation plant was first put into operation.Part I describes the development of current gold-room practice, commencing with the clean-up of the MerrillCrowe plant, a procedure that has not materially changed since its inception, and then shows how modifications to straight roasting and smelting became necessary, following a gradual increase in the copper content of the ore treated by the mill.Present smelting practice converts most of the copper into a mixed copper-lead matte, thE sulphur being supplied by the addition of flotation concentrates containing about 35% sulphur as pyrite. The process yields gold bullion of a sufficiently high grade to send to the Royal Mint, but until 1943, suffered from the disadvantage of giving matte and slag by-products high in gold and silver, that were not recovered directly but had to be sent to a smelter.Part Il gives details, of experimental work cnrried out since 1943 which led .to a process for the satisfactory and economic recovery of not only the gold and silver, but also the copper from these, hitherto, troublesome by-products. Nevertheless, incidence of matte in a smelt has always been considered undesirable, and it is hoped that eventually it will be obviated by removing most of the copper from the zinc slime before smelting.Part III indicates the methods by which this might be achieved, and outlines the experimental work that has been done up to the present.

Jan 1, 1948

By T Barto, D Thomson, T Norgate, C Doblin

Collaboration between CSIRO Minerals and SunSalt Pty Ltd, a salt producing company located in rural Victoria, has resulted in a commercial process to recover magnesium sulfate (commonly called Epsom salt) from the saline waters of the Murray Basin. The feed for this process is bittern; the liquor remaining after halite (common salt) has been harvested from the saline water by evaporation.SunSalt produces salt and bitterns from three locations, namely Hattah (Victoria), Mourquong (NSW) and Wakool (NSW). The small size and considerable distances between these operations makes it uneconomic to build a stationary processing plant to extract value-added products, in particular Epsom salt, from the bitterns of the three operations. This fact led SunSalt to build a containerised mobile plant that could be moved to each site to process the bitterns at the end of the salt harvesting period.Epsom salt is extracted from the bittern by further evaporation, refrigeration and recrystallisation. In this process the bittern is diluted with five per cent volume of fresh water to minimise precipitation of residual halite in the bittern. Cooling the diluted bittern to between -5 and -10¦C precipitates up to 70 per cent of the magnesium sulfate, which is recovered as 85 to 96 per cent purity Epsom salt by filtration. This product is marketed as an industrial grade Epsom salt. Higher purity (up to 99.9 per cent) Epsom salt (USP or BP grade refined product) is made from the industrial grade product (raw Epsom salt) by recrystallisation.The containerised mobile plant was commissioned in December 2002. The raw Epsom salt generated in the mobile plant is refined to a higher purity Epsom salt in a separate plant located in Mildura. The Mildura plant was commissioned in December 2003.The CSIRO-SunSalt collaboration has demonstrated that the saline waters can be processed into a useful resource, and in addition could create jobs and a new skill base in regional Australia. The production of Epsom salt locally in Australia, which is worth currently about $A600 per tonne, removes the need to import over 3000 tpa from overseas with a net positive impact of $A2 million on the balance of trade.

Jan 1, 2004

By O Rojas

The Telégrafo copper – gold deposit is located in the Centinela district of the Antofagasta region in northern Chile. Telégrafo is a porphyry copper deposit of Eocene – Oligocene age which has a total mineral resource in measured, indicated and inferred categories equal to 2.6 billion tonnes with an average grade of 0.38 per cent copper.Currently the project is in the prefeasibility study phase, including an infill drilling campaign to improve the knowledge of the deposit that should result in an improvement of the mineral resource classification. In this context was decided to review the classification criteria in order to optimise the drill hole density necessary to support the project.This paper presents an application of conditional simulation to evaluate the risk related to drill hole spacing, using a geostatistical approach that mimics the process of evaluation of resources from the perspective of geological modelling and grade estimation. The first step of the approach is the generation of conditional simulations using the available samples to generate several plausible scenarios of the deposit in terms of copper grades and geological units. These scenarios are considered as the unknown reality of the deposit and sampled by synthetic drill holes in order to replicate the geological model process and copper resource estimation. In this way it is possible to establish differences between the possible scenarios and the generated resource estimation models for several simulated drill hole spacing alternatives. These differences or errors can then be quantified in terms of estimated mean, metal content and tonnage over different production volumes.The resulting errors were useful in assisting the decision making process related to the design of drill hole spacing for each category of mineral resource in the Telégrafo project, and to redistribute the budget associated to the drill campaigns for the next stage of the project.

Aug 22, 2011