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By Sorentino C

Mineral valuation may appear to be a special field of financial valuation when in fact it is a subset of general investment decision theory. The only significant difference in mineral valuation is that in the case of valuing an on-going mineral asset, ie a mine, often there is no initial capital outlay involved. One is required to determine what the mineral asset as it stands is worth. But this is the same problem as determining the maximum one could pay today and not incur a loss over the life of the asset. In other words one needs to determine the Net Present Value (NPV) of the asset. The two most widely used discounted cash flow methods, NPV and Internal Rate of Return (IRR) came of age with the rapid adoption of the personal computer and spreadsheet programs. The two methods are directly related as the IRR is a special case of NPV. NPV measures the absolute increase in real wealth that can be expected from a certain investment, which makes it particularly suitable for mineral asset valuation, but ignores the efficiency of the investment. In contrast, IRR gives the expected efficiency of the investment but ignores the increase in wealth aspect. IRR has two serious theoretical weaknesses; multiple IRR's and a very rigid assumption about the rate of return of reinvested proceeds, plus if no initial equity expenditure is involved there is no IRR. The choice of the ""hurdle"" rate can also be a problem and in certain circumstances one can obtain different rankings of mutually exclusive projects using IRR and NPV. Although NPV and IRR supposedly measure financial risk, in fact they only address a very narrow area of risk, namely the time value of money given the real discount rate. They side step the issue of what the real discount rate should be and varying degrees of risk. The classical way to establish the real discount rate is to use the weighted average cost of capital.

Jan 1, 1994

By M Hudyma

Open stope mining is the most common mining method employed in underground, hard rock mines in Canada. It is characterised by relatively small, single lift stopes (20 000 to 100 000 tonnes), and fast stope turnaround times. Host wall rock mass conditions, which are typically poor to fair, are the controlling parameter in stope dimensioning. Rock mass stability is maintained by designing all stope surfaces at a stable dimension, and through extensive use of cablebolting for stope backs and frequently stope hanging walls. Dilution control is a high priority. The typically small, high-grade, deep and irregularly shaped orebodies are incrementally developed, usually in a bottom to top direction. In many cases, high stress is encountered due to the depth of the orebodies. Overstressing of pillars and hanging pillars are avoided through the use of pillarless or early pillar recovery mine sequencing strategies. Stopes are invariably filled, and in higher grade and wider orebodies, cemented fill is commonly used. This paper generalises many of the similarities found in Canadian open stope mines.

Jan 1, 2000

By M Titley, E Maidens

Many gold deposits were mineralised by fluids and processes that also altered the host rocks. This alteration may often be a useful visual aid that distinguishes barren, low-grade from high-grade regions in a rock mass. Alteration intensity is commonly used in gold deposits as a visual tool, along with face sampling or grade control support, to define oreblocks and guide excavation in underground and open pit mining. However, alteration is not often used at the resource estimation stage. Mineralised lodes are usually defined by geologists using a ægeo-grade envelopeÆ, where a number of constraints are considered, including an (arbitrary) cut-off grade; the ænaturalÆ grade break between high- and low-grades; and geological features including structural, lithological or alteration continuity. The geo-grade envelope is usually thought to satisfy the requirements of stationarity for grade estimation, and is considered a single domain. This paper examines a modelling technique combining gold grade and alteration, applied to the Wallaby deposit in Western Australia, to imbue a greater level of detail to the grade estimation in a region tested by relatively sparse drilling. This was achieved by utilising the correlation of gold grade and alteration, along with the spatial characteristics of the alteration, when estimating grades within a number of lodes. The alteration-driven estimation was utilised in conjunction with an unfolding approach, and the use of probability estimates, to overcome geometric data constraints. This technique allows greater control and most likely provides a more reliable estimate of the mineable resources than a global grade cut-off when visual control is to be a major vector in grade control.

Jan 1, 2003

An understanding of the importance of the different components that comprise a rock bolt unit is necessary to ensure the proper use of rock bolts as a means of roof support. The various anchors, bolts and plates in use in Australia have been designed and adapted for Australian con- ditions. As mining conditions change, so will the types of bolts in use. This is apparent in the development of chemical anchors and other recent innovations.

Jan 1, 1971

AXTAT is a computerised system developed by the Western Australian Department of Minerals and Energy in conjunction with the local mining industry for recording and retrieving information about fatalities and work related injuries. Since its inception, the system has gained considerable recognition by consistently demonstrating its usefulness as a tool, not only to the Department, but for the entire industry nationwide. AXTAT has played an important role in the continuous improvement process in management of occupational health and safety in the Western Australian mining industry with gains in both human and financial terms, by regularly providing timely and accurate statistical feedback on fatalities and lost time injuries to industry.

Jan 1, 1996

By Amelunxen R, Finch JA

Flotation columns represent an important addition to flotation practice. Columns have largely replaced. conventional machines in molybdenum cleaning in Canada. Columns have been successfully tested on bulk copper/molybdenum cleaning at Gibraltar Mines Ltd. A rougher cleaner/scavenger cleanercombination was shown to be capable of giving higher grades and recoveries compared with three stages of conventional cleaning. A control strategy for the columns has been developed. An interaction between gas hgldup and wash water rate has been exploited to control performance.

Jan 1, 1985

By G Senanayake, J Andreazza

The general experience in gold cyanidation research activities and plant practice is that high oxygen and cyanide concentrations improve gold leaching kinetics which in turn reduce residence time and increase throughput. This paper shows how the improved pre-oxidation method for the pyrrhotite rich gold ore of Bounty Gold Mine has increased gold recoveries at lower reagent consumption rates. The installation of a pipe reactor, in conjunction with a Multi Mix Systems oxygen injector, has lowered the amount of oxygen required to achieve a dissolved oxygen level target of 20 mg/L. The improvement of the pre-oxidation stage and lead nitrate solution addition has led to a reduction in the free cyanide concentration required for leaching, resulting in a decrease in cyanide consumption rate by 36 per cent to achieve a one to two per cent improvement in the gold recovery.

Jan 1, 2002

By Wygralk A, Hallenstein CP

On a world scale, many Mid-Proterozoic fluvial sediments are prospective for low grade, large-tonnage gold deposits. A significant area of the Northern Territory is covered by such Mid-Proterozoic sediments, the gold potential of which has been barely tested. The geological knowledge of these sediments is summarised. The Westmoreland Conglomerate, the basal Mid-Proterozoic formation of the McArthur Basin, has been subjected to detailed sedimentological studies in order to determine the paleoenvironments and to assess the possibility of paleoplacer occurrences. The results indicate that the sandstones and conglomerates of the formation were deposited by braided rivers and debris flows as an alluvial fan which originated in source areas to the north east. The formation contains several upward-fining cycles of sedimentation, which are related to repeated periods of uplift in the source areas. The formation of placer-type gold occurrences is possible in such depositional environments. Very limited heavy mineral sampling has indicated a cassiterite- wolframite-gold suite in the sediments of the Westmoreland Conglomerate. Disconformities at the base of sedimentation cycles are deemed to be the most likely sites for large-tonnage paleoplacer concentrations.

Jan 1, 1984

By Giedl JG

Technical applications of computers within the coal industry are expanding rapidly with an increase in the number of users and user locations. Collinsville Coal Company Pty Ltd is an example of a remote and growing user company which has a Telecom link to MIM's ICL mainframe computer in Brisbane. The Planning Department is one of the technical user departments at Collinsville, with a variety of VDU, plotting and screen graphics hardware supported by the MIM Computing network. Current applications involve the storage, retrieval and manipulation of borehole information, plan and map production, volume calculations from survey data and mine ventilation modelling for underground Operations.

Jan 1, 1983

By McPherson M. J

This paper describes a major ventilation study for the expansion of the El Teniente mine operated by Codelco, Chile. El Teniente is one of the world's largest under- ground mines. The design effort was under- taken in three stages and involved a partial mine ventilation survey with network simula- tion, detailed stope ventilation investiga- tions, and design of the entire mine ventila- tion circuit based on production plans to achieve 112,000 tons per day by 1995. The partial ventilation survey provided values of representative friction factors and resistances for typical ventilation raises and airways. These values were used to conduct detailed modeling of the block caving levels to investigate the most cost effective and practical means of providing the required ventilation. The results of these analyses were extrapolated to the proposed expanded mechanized zones.

Jan 1, 1988

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

Jan 1, 1983

By P D. Franzmann, D J. Readett, J Peterse

A better connection between laboratory- and pilot-scale test results, and heap bioleaching performance can be achieved by generating reliable information on the fundamental microbial, chemical and physical processes that occur in heaps and incorporating this information into a comprehensive and robust model. More efficient heap bioleaching, particularly of chalcopyrite, has the potential to add value to the mining industry as well as deliver attractive environmental and social benefits to the communities within which those companies operate.The results of fundamental chemical and microbiological studies of the leaching mechanism, the temperature dependence of chalcopyrite bioleaching, and the optimisation of leaching conditions are described with examples from full-scale heaps. The development and application of a number of novel techniques and tools has assisted our understanding of heap subprocesses mineralogy, hydrology, chemistry and microbiology. The heap bioleaching model HeapSim, which embodies a large number of effects not previously accounted for in other models, continues to be refined and has been applied successfully to the study of several heap bioleach systems.

Jan 1, 2004

By T C. McCuaig, D B. Mapleson

The Wannaway Deposit is a structurally modified komatiite-hosted nickel-sulfide deposit. Until recently, nickel sulfide accumulations surrounding the Widgiemooltha Dome had been studied with a focus on understanding volcanological aspects of komatiite flow regimes and nickel-sulfide accumulation. Although volcanological features can be observed at Wannaway they are overprinted by several generations of structures associated with multi-phase deformation of the Dome. On the mine scale, two significant deformational events can be distinguished that control ore distribution. The first deformational event is represented by the formation of a layer parallel foliation within the footwall metabasalt and boudinaging of the ore into two distinct orebodies (mega boudins) during a north-south compressional event. Evidence of a second compressional event (east-northeast-south-southwest) is defined by reverse > dextral thrust-folding of the ore zone. The latter deformational event focussed the sulfide ore into thrust front positions where folded ore sequences are mined with stope widths up to nine metres wide. Later stage compressional and extensional deformation phases are observed but have minor, localised effects on the geometry of the ore zone. Four orders of control on the geometry and distribution of ore are interpreted through a combination of primary and secondary features observed at Wannaway. Extending the structural aspects of the secondary overprint features into areas of potential mineralisation has not only defined targets for extensions to the Wannaway Deposit, but has also aided to delineate high grade mineralisation and aid mining decisions. Obtaining an understanding of the volcanological conditions of formation, and more importantly, the structural evolution of the Wannaway region has been an integral part in optimising production.

Jan 1, 2003

By Dickerson A. W

The most important mining problem facing many of the established surface coal mines in the Bowen Basin area of Queensland is the rising cost of overburden stripping associated with increasing depths to coal. The Dragline-Hopper-Truck Project is one of a number of responses to this problem, and involves the design and construction of an experimental hopper followed by field evaluation of a dragline-hopper-truck mining system.Such systems, if proven feasible, could be used for a range of applications, eg prestripping, extension of depths for single pass dragline operations and solution of geotechnical problems.

Jan 1, 1992

An understanding of the way that solutes are transported in mining or natural environments is essential to the development of sound strategies for managing waste disposal. Research on miscible pollutant movement in unsaturated porous media is carried out both experimentally and numerically. Results of numerical modelling are obtained by solving the groundwater flow equation and the solute transport equation. The finite element method is employed and comparisons between simulation results and experimental data are found in remarkable agreement.

Jan 1, 1995

The recent installation of top gas temperature probes in blast furnaces at Australian Iron & Steel Pty. Ltd. - Port Kembla, has provided the means for studying radial gas flow distribution in blast furnace shafts. This paper describes the top gas temperature probes and outlines their development and results of initial studies aimed at obtaining a suitable relationships between temperature profiles and furnace parameters. The effects of various combinations of burden materials have been outlined by the results reported. The use of probes has also helped to clarify the effect of casting cycles on furnace operation leading to increased emphasis on the reduction of the interval between gun-up and drill-out. Areas for future studies are also broadly Outlined.

Jan 1, 1975

By Cairncross A. A

Papers on technical aspects of the Melbourne Underground Rail Loop project are being presented at this conference or have been presented previously or will be presented at other forums. This paper provides the framework for these papers by presenting the overall engineering tasks. The conceptual design, the special investigations undertaken, the management of the project and the construction development are highlighted.

Jan 1, 1981

By D Craw

The Hyde Macraes Shear Zone is a mineralised low-angle shear within the Otago Schist traceable for ~30 km with a NW strike. It is been actively mined along 12km of this strike, producing >6 Moz of gold. The shear zone consists of greenschist facies rocks with a mineralogy only subtly different from that of the host schist. Pervasive fluid flow has occurred along grain boundaries and within microshears which have been enhanced by the deposition of hydrothermal graphite. We model the development of these microshears using a threedimensional numerical code. For an inhomogeneous initial rock with lithostatic fluid pressures and a dynamic permeability deformed under dextral non-coaxial flow, deformation is distributed into weak shear bands. Graphite deposition and associated reaction-softening has a dramatic effect on the development of model shear zones. Graphite is deposited into a shear band, weakening it and further localising the deformation into that shear band, producing an anastomosing and interconnected shear zone structure such as observed in the HMSZ. The degree of graphite precipitation and graphitic-induced weakening are varied in the models. More graphite precipitation with a low degree of reaction-softening results in more diffuse shear bands. In contrast less graphite deposition but with a high degree of reaction-softening more leads to the development of more focused shear bands. Graphite deposition has clearly controlled the formation of the HMSZ structure, and is an important indicator of potentially mineralised structures elsewhere.

Jan 1, 2007

By J Araya, O Leiva

The mine evaluation process, composed of the designing, planning and valuation of a mine project, is, among other variables, based on an estimated orebody model. However, as the information from the drill holes is limited, it is impossible to know with certainty the mineral content in each block within the estimated block model. Consequently, uncertainty about the value of metal grades, or other geological attributes, arises because of the lack of information at unsampled locations. This is one of the reasons why, in any mine operation, there will always exist a divergence between estimated and real values. Cut-off grade optimisation is the process used to determine the operating mining strategy (long-term production scheduling) that will maximise the total profit value (normally referred as the net present value (NPV)) of a mine operation. This is done by defining a dynamic cut-off grade policy which is constrained by the production capacity of the mining, mill and refining.Real options is a type of contract, written on real assets such as mining, oil and other natural resource industries, that gives you the right but not the obligation to exercise the contract. It is based on operational and managerial flexibility, which allow mine decision makers to react to either good or bad operational and economic events in the future. But, what do geostatistics and cut-off grade optimisation have to do with the application of real options in a mine project evaluation process? The objective of this paper is to answer the previous question by showing how geostatistics combined with cut-off grade optimisation are key tools for corporate/managerial decision makers, which allow them not only to analyse the resource/reserves of their projects, but also to generate operational strategies that can maximise project value by minimising the downside risk due to ore tonnes and grade uncertainties, while achieving operational and physical constraints such as mining and processing capacities. A real copper grade open pit mine project is used as a case study.

Sep 26, 2011

By Waters CA, Happ JV

The debismuthising plant, commissioned in 1980, is based on the Kroll-Betterton process for preliminary bismuth removal with subsequent antimony treatment for fine debismuthising. Bullion flowrate is continuous and the plant was designed to achieve low bismuth lead product at rates of up to 20 tonne/h.Development of the first stage of the operation has enabled reliable operations at 25 tonne/h to be achieved. Thesedevelopments also introduced the opportunity to treat higher bismuth bullion at up to 35 tonne/h when operating the first stage only to produce product lead of 0.029 per cent Bi, meeting the ASTM B29-55 Corroding Lead Standard.

Jan 1, 1985