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By A Trench, S Ulrich, S Hagemann

A synthesis of reported All-In Sustaining Costs (AISC) for 57 Australian gold mines in the period 2014–2016 reveals for the first time the clear influence of grade upon cost performance, most evident in gold-only underground mines. Past syntheses of costs on a single quarter basis have viewed grade as potentially subordinate to other factors such as production scale, mine geometry, mineralisation style and a combination of other mining-related costs. Better understanding of the grade to cost relationship on both an individual mine and whole-of-portfolio portfolio basis is needed. Insight into the roles and trade-offs between other cost-determining factors will aid the future sustainability of the gold mining sector in Australia and assist in targeting prospects for future resource growth and development. While the overall trend is toward higher-grade mines displaying lower costs and vice versa, the grade to cost functions appear radically different between mines based on time-series data. The median cost of Australian gold production in the final quarter of 2016 was A$1081/oz. The threshold for lowest cost quartile production was A$965/oz. Underground production now dominates Australian gold output – with 71 per cent of ounces originating from operations that are either entirely underground or hybrid pit/underground mines. Scale economies are evident, with smaller mines predominately among the higher cost producers. For mines of equal grade, open pit mines are lower cost than underground operations. Reserves are modest, with a median mine life for underground operations of 4.7 years based on current production rates. Reserve additions at mines are likely constrained not only by the finite nature of mineralisation at each mine but also by the geometrical difficulty of accessing suitable drilling locations to test for reserve extensions.CITATION:Ulrich, S, Trench, A and Hagemann, S, 2017. Towards an understanding of production costs at Australia’s underground gold mines, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 241–250 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

Efficient project planning during the detailed feasibility to final engineering stages of a project requires not only the accurate prediction of the grade, tonnes and recovery, but their degree of variability as well. An understanding of the major parameters involved in the grade and tonnage estimates is essential, and the communication to those receiving the results is most important. The personnel involved in the project require more than just a global reserves classification. Quality parameters other than grade should be evaluated as carefully as the estimate itself. This paper does not present any novel ideas to overcome or enhance any of this. Rather, it takes a step back and tries to look at the global picture of requirements for proper project planning.

Jan 1, 1987

This problem is seen as being central to a number of peripheral problems. Of these, the following are considered to be of major importance: 1. Reserves. Changes in Quality. Depths at which they occur. The effects of catchment and water storage areas. The effects of urban development. 2. Environment and the compat- ibility of mining and preparation of coal. 3. Transportation of Coal. J. tabour.

Jan 1, 1976

By L Manca, P B. Hills, D Tyler, N Pollington

This paper describes a collaborative project undertaken by Newcrest Mining Limited (Newcrest) and pitt&sherry to identify, develop and then implement global best practices to manage the exposure to inrush (dry and mud) hazards in underground mining operations. An extensive literature review was undertaken to identify past experience globally and the current state of knowledge and practice in managing inrush hazard. A key requirement of the literature review was the development of a list of guiding questions which would form a framework for approaching operators to discuss the topic, capture recent learnings and understand current operating practices to allow the development of a best practice solution. An initial cohort of 14 mines across four continents chose to contribute and detailed interviews were carried out by the project team. The outcome from the literature review, interviews with participating mines and various internal discussions was a comprehensive summary document detailing Basic versus Best Practice management of the inrush hazard. This document is being used as a gap analysis tool by Newcrest to assess and guide the management of inrush hazard at their existing and future operations. The summary document has also been provided to the participating mines for their consideration. The project is iterative and will continue to evolve as new experiences, knowledge and practices come to light.

Mar 15, 2021

By Sans H

The geostatistical Discrete Gaussian (DG) model is demonstrated to be capable of providing an effective means of implementing change of support for Enterprise-style mineralisation and thus providing reliable global recoverable resource estimates. At Enterprise, sample grade distribution proves to be highly positively skewed, therefore significant deskewing of the histogram and reduction of variance occurs when going from sample to block support. The DG model was experimentally tested in'the Southern Primary Zone (SPZ) at Enterprise, where high anisotropy ratios and pronounced short range structures are observed in variograms. The experimental test was run for a change of support for which the variance reduction was. approximately 60 per cent. This reduction is similar to that predicted by Krige's Relationship ('the volume-variance relationship') for the practical situation of a change of support from 5 m vertical blasthole samples to 3 m x 8 m x 5 m selective mining unit (SMU) blocks. The DG model was found to correctly predict the grade tonnage relationships for a wide range of cut off grades. The experimental test indicated that, given a representative histogram and variogram, the DG change of support provides a computationally efficient and practical means of reliably assessing global mineable resources at the early stages of a mining project. Further, it allows a range of selectivity strategies to be meaningfully and comparatively considered prior to mining.

Jan 1, 1995

By Lawless JV

Recent exploration for gold on the Pacific Rim has utilised similarities between active hydrothermal systems and epithermal gold deposits. The major control over formation of such deposits is the hydrology of the ore-depositing hydrothermal system, which varies depending upon its geologic setting.

Jan 1, 1987

By W J Fisher

Northern Australia leads in world-class mineral deposits' is a bold statement. First there must be a starting point. Land north of the Tropic of Capricorn (23¦ 26' 5") will be regarded as Northern Australia covering nearly 40 per cent of the land surface of Australia. As opposed to land south of the Tropic of Capricorn, it should be regarded as Tropical Northern Australia and for the sake of brevity, (TNA) Refer Figure 1. Apart from the tyranny of distance from centres of power and population in the temperate zone, it suffered in the past from the belief that the tropics are unsuited for European workers and from the lack of infrastructure. Outstanding mineral deposits of iron, base metals, gold and diamonds, discovered and developed in the past three decades, provided the substance for the title. There are many world-class mines producing and there are mineral deposits neutralised through Government policy. TNA can maintain its lead in world-class mineral deposits provided Government policy will stop partitioning the land and decreasing that available for exploration. Let's look at what we have that is world-class. In Western TNA iron ore deposits at Paraburdoo, Mt Tom Price, Marandoo, gold at Telfer, diamonds at Argyle. In central TNA uranium at Ranger and Jabiluka, lead-zinc-silver at McArthur River, gold at the Tanami, manganese at Groote Eylandt and bauxite at Gove. In eastern TNA Mt Isa, Hilton, Century zinc-lead, bauxite at Weipa, gold at Kidston, Mt Leyshon, magnesite at Yamba and coal mines in the Bowen Basin. Those mines or deposits stand out yet are only an indication of the numerous lesser mines and of mineral deposits depending for development on market demand and/or changes in Government policy, eg 'The Three Mines' policy. Very large areas of mineral rich structures in the western, central and eastern parts of TNA are concealed below flat lying comparatively young unmineralised sediments. The Great Artisan basin sediments in eastern TNA can and do host oil shale and non metallic minerals. Nearly 40 per cent of western TNA is covered by the Great Sandy Desert. The Canning Track, with a series of 54 wells, was constructed by surveyor Alfred Canning in 1908 - 1910 with great difficulty. It extends 1700 kilometres from Halls Creek in the north to the gold town of Wiluna in the south, through the Great and Little Sandy Deserts. Gold explorers are following favourable structures extending to the north east below the sediments and sand hills covering the track. Half of central TNA's mineral structures are concealed by the Tanami desert and the Cretaceous sediments covering the pastoral regions of the Barkly Tableland and the Daly Waters to Top Springs pastoral areas. The Georgina Basin in the south eastern section is part of the concealment.

Jan 1, 1994

Gold at Renco occurs in association with pyrite, pyrrhotite, chalcopyrite and quartz and is confined to a series of brittle fractures and fault breccias (reefs) preferentially developed within an anastomosing ductile shear zone. During late Archaean crustal movements both the orebody and the enclosing host rocks were deformed within a series of east-north-east striking, southerly dipping, shear zones. The reefs within these shear zones are now texturally different to those away from the shear zones, and this difference is reflected by differences in the way the gold is distributed in the two reef types. These differences are not taken irto account by the software package currently being used to generate kriged plans of gold grade and reef thickness and this may explain some of the inaccuracies found in these plans.

Jan 1, 1990

By Aspinall T. O, Loch R. J, Bell L. C

Design of reshaped spoil surfaces is an important pan of rehabilitation of spoil piles resulting from open-cut coal mining. To achieve the optimum design, it is necessary to make accurate predictions of soil losses from spoil piles. Predictions can be based on data gathered using laboratory and field rainfall simulators and field plots. These data are used to derive input parameters for erosion prediction models. Model input parameters include rainfall erosivity, spoil erodibility, sediment size distribution, runoff, soil loss and peak runoff rate. Model outputs can be used in design and include predicted sediment size distribution and predicted soil loss.The traditional method of gathering input data is monitoring field plots. This method is very expensive, must be done on a long-term basis and is affected by irregular rainfall. Long-term field plots are necessary to obtain data that can be applied to empirical prediction models such as the Universal Soil Loss Equation (USLE).

Jan 1, 1992

The first mining in Western Australia probably commenced some 40 000 years ago when Aborigines arrived and began quarrying stone for tools and weapons, and ochre for decoration. The earliest documented mining by European settlers took place in 1850 on a small lead vein in the bed of the Murchison River, reported by the explorer A C Gregory. However, it was the discovery of gold in the Kimberley region in 1885 that first drew wider attention to the State's mineral potential.

Jan 1, 1992

By Lee H. G, Li H, Hayes P

Slag from the smelting of lead can contain up to 20 per cent zinc as an oxide. An understanding of the lead smelting process and of the subsequent fuming process for the recovery of zinc is enhanced by a knowledge of the activity coefficient behaviour of zinc oxide in smelting slags. The literature presents a wide range of contradictory values. This paper critically reviews the published data and outlines new measurements being made by the authors. A consistent set of zinc oxide activity coefficient data is presented for liquid slags within the ZnO-'FeO'-CaO-A1203-SiO2 system, through a combination of present and previous measurements.

Jan 1, 1993

A review is given of progress made to- wards the development of personal gravimetric dust sampling for risk assessment on South African gold mines. The present strategy is critically examined on the basis of principles for assessing health hazard from dust exposure. Reasons are advanced for replacing the konimeter with a gravimetric system based on full shift personal sampling. Constraints imposed by local characteristics of gold mines are used to illustrate the difficulty in finding suitable instrumentation for measuring personal exposure to respirable silica.

Jan 1, 1988

By D S Wallis

Northern Australia leads in world-class mineral deposits' is a bold statement. First there must be a starting point. Land north of the Tropic of Capricorn (23¦ 26' 5") will be regarded as Northern Australia covering nearly 40 per cent of the land surface of Australia. As opposed to land south of the Tropic of Capricorn, it should be regarded as Tropical Northern Australia and for the sake of brevity, (TNA) Refer Figure 1. Apart from the tyranny of distance from centres of power and population in the temperate zone, it suffered in the past from the belief that the tropics are unsuited for European workers and from the lack of infrastructure. Outstanding mineral deposits of iron, base metals, gold and diamonds, discovered and developed in the past three decades, provided the substance for the title. There are many world-class mines producing and there are mineral deposits neutralised through Government policy. TNA can maintain its lead in world-class mineral deposits provided Government policy will stop partitioning the land and decreasing that available for exploration. Let's look at what we have that is world-class. In Western TNA iron ore deposits at Paraburdoo, Mt Tom Price, Marandoo, gold at Telfer, diamonds at Argyle. In central TNA uranium at Ranger and Jabiluka, lead-zinc-silver at McArthur River, gold at the Tanami, manganese at Groote Eylandt and bauxite at Gove. In eastern TNA Mt Isa, Hilton, Century zinc-lead, bauxite at Weipa, gold at Kidston, Mt Leyshon, magnesite at Yamba and coal mines in the Bowen Basin. Those mines or deposits stand out yet are only an indication of the numerous lesser mines and of mineral deposits depending for development on market demand and/or changes in Government policy, eg 'The Three Mines' policy. Very large areas of mineral rich structures in the western, central and eastern parts of TNA are concealed below flat lying comparatively young unmineralised sediments. The Great Artisan basin sediments in eastern TNA can and do host oil shale and non metallic minerals. Nearly 40 per cent of western TNA is covered by the Great Sandy Desert. The Canning Track, with a series of 54 wells, was constructed by surveyor Alfred Canning in 1908 - 1910 with great difficulty. It extends 1700 kilometres from Halls Creek in the north to the gold town of Wiluna in the south, through the Great and Little Sandy Deserts. Gold explorers are following favourable structures extending to the north east below the sediments and sand hills covering the track. Half of central TNA's mineral structures are concealed by the Tanami desert and the Cretaceous sediments covering the pastoral regions of the Barkly Tableland and the Daly Waters to Top Springs pastoral areas. The Georgina Basin in the south eastern section is part of the concealment.

Jan 1, 1994

By Fukuda M, Kurita K

A mathematical model for estimating the liquid level in the hearth is presented. The analytical result was checked on a cold two-dimensional model and an additional boundary condition for the fundamental equation resulted. The applicability of the resultant equation was investigated on a cold model and a regression equation obtained for the average liquid level for Kashima No. 1 BF. Comparison of calculated and observed results were in fairly good agreement. It is concluded that the liquid level in the commercial furnace can be calculated from the measured values of pressure in the bosh and operating conditions.

Jan 1, 1975

As partition curves are widely employed to characterize screening efficiency which, by definition, should include a time parameter, it is shown, perhaps for the first time, that time is already included in the partition curves and how. Laboratory and plant results are used to show how screening efficiency depends on feed composition, near-mesh and oversize material and screen motion, and how these factors may combine to give an erroneous result that two identically efficient screens are different and two screens of different efficiency are identical. Reasons are given which show why a renewed interest in screening would benefit not only screen engineers and operators but also those concerned in formulating standard specifications of screen analysis methods.

Jan 1, 1984

By Oda Y, Hashiuchi M

In the smelting section, flexible fuels such as coal or coke are used in place of heavy fuel oil in order to utilize energy sources more efficiently. Heat recovered from the off gas of the furnace has been converted by the waste heat boiler into steam, which is used for self power generation and for heating or maintaining various temperatures. The amount of the recovered steam in the smelter is currently increasing due to maximum utilization of powdered cokes. The heat source required to maintain the temperature of the electrolyte in the tank house is electric power and steam. However until recent year this steam was provided by its own heavy oil combustion type boiler in the tank house since the amount of steam consumed in heating the electrolyte is large. Though experimental work over the last few years has shown the advantages of reducing steam in the tank house by fully covering the cell, the implementation of the full cover can lead to other operating problems. However various improvements, mainly the covering of the cell with a simple device, have led to greatly reduced steam consumption. As a result, steam for the tank house is now provided by the waste heat boiler only bringing more efficient energy usage.

Jan 1, 1987

By Aspinall T. O, Just G. D

Computer software systems have been developed to assist in a wide range of specific mine planning and scheduling applications. In selecting appropriate systems for any mining operation it is apparent that certain features have particular advantages for each mine site. The ideal solution to this problem is to select a range of systems which best relate to sections of each mining operation. This approach raises potential data linking difficulties where output from one system is incompatible with input requirements for other systems. A study at the University of Queensland investigated the problems related to the integration of a number of mine planning and scheduling software systems. The project used data from large scale coal strip mining operations in Central Queensland. Two major computer packages used extensively in the study were the SURPAC mine planning and XPAC mine scheduling systems. Dragline and truck and shovel operations were analysed in the project. Results of the work have been directly applied at the mine site to assist current strip design by effectively automating the design procedure. This enabled sensitivity studies to determine the effects of changing dragline working levels and varying pit dimensions. Coal blending studies and procedures to optimise operations have been investigated using linear programming within a spreadsheet software application. Output from the SURPAC and XPAC programs was directly linked to the linear program for this analysis. The simulation program GPSS/PC was also used in a similar manner to assess optimisation parameters.

Jan 1, 1992

By Aziz NI

There are a number of methods available for the determination of the fracture toughness of rock. Some of the most recognised methods include the hollow pressured cylinder, the short-rod, the chevron - edge-notched round bar in bending and the disc-shaped compact specimen. Most of these tests are difficult and expensive to conduct. In this paper the simple Brazilian testing of discs for tensile strength has been used to determine their fracture toughness. Tests were conducted on six different rock types and the values of the fracture toughness obtained for each type are in close agreement with the results of the well recognised the chevron edged types. Details of the tests, and analytical validation of the technique, are presented

Jan 1, 1992

Joint ventures exist as a means of sharing risks and obeying regulations. An unincorporated joint venture allows a company to take a share only of a project yet allows that company to treat such share as though it were an integral part of the company. The nature of the risks inherent in many ventures is described and comparisons made with alternative corporate vehicles. Different procedures for managing joint ventures are also reviewed and the types of problem encountered in establishing and operating joint ventures are discussed. The basic characteristics of successful joint ventures, in Australia, are listed and a conclusion reached that, despite its difficulties, the joint venture will continue to proliferate as a corporate vehicle for project development.

Jan 1, 1983

By Qi P. H

Gold dissolution can be achieved with a number of complexing ligands, all with varying degrees of stability. Processes based on the use of halogens have been known for many years. Beside providing the necessary complex- ing role, the halogens under the appropriate conditions are very effective oxidants for gold. Of the halogens, the gold iodide complexes are the most stable in aqueous solution. Iodine can establish the desired oxidation poten- tial for oxidizing gold, and unlike chlorine and bromine, the oxidizing potential of iodine is mild enough to avoid the oxidation of impurity constituents like metal sulfides. A series of experiments to investigate the fundamental electrochemistry of gold in different halide solutions was performed. Cyclic voltammograms of gold in the presence of 10-2 M chloride, bromide and iodide, respectively show that for a given potential the rate of oxidation is much faster in iodide solution than in either chloride or bromide. An overlay of linear sweep voltammograms for the anodic oxidation of gold in iodide and the cathodic reduction of iodine species on gold provides an effective method for examining the dissolution of gold in iodideftodine solution. The dissolution rates obtained from both electrochemical and actual leaching results are compared. Optimum leaching conditions are analyzed in terms of the iodide/iodine concentrations. Conceptual processes for the recovery of gold and iodide and the regeneration of iodine are discussed.

Jan 1, 1991