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By R Burke, G Ramage, C Donnelly

Over the decades, Redpath has undertaken a multitude of tunnelling and underground excavation projects for civil and mining clients both domestically and internationally. These projects have been undertaken through varying strata conditions with differing excavation methods in remote locations and in central business districts.With the recent turbulent nature of the global financial environment, project drivers have been challenged with the emphasis being placed on methods to gain early access to orebodies, rapid development techniques, lower capital costs and reduced labour requirements to name a few.A number of mining companies seeking to achieve these objectives have commenced the journey to better understand the operational constraints, challenges and opportunities that may be available with the use of alternative excavation methods.The development of safe and effective alternative excavation methods that comply with both domestic and international mining legislation and regulatory requirements is a challenge the industry needs to embrace. Given the current cost pressures being faced by the Australian mining industry, some alternative excavation methods offer the potential for longer term sustainability and rapid development of resources.More recently work has been undertaken on a project that challenged the norm and implemented an alternative excavation method with the use of an excavator with a rotating drum cutter head.This paper will review this recent project and provide technical and operational insight into some of the challenges faced in implementing an alternative excavation method in the metalliferous industry.CITATION:Donnelly, C, Ramage, G and Burke, R, 2014. Challenging the norm – alternative excavation method in mining, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 187–190 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

By J Meikle

A projected image is not always a true representation of a situation, or indeed an industry. This is often the case of the mining and minerals industry, which has frequently been portrayed in a negative light with a male dominance stigma attached. However, these issues can be combated for both the industry and its future, current undergraduate students, through undergraduate industry experience. In particular, vacation work enables female students to dispel many myths surrounding the industry and realise that the mining and minerals field offers career development for both genders. This paper will discuss how vacation work enables students to make important career decisions even before they have graduated. Industry experience provides undergraduates with the opportunity to gain practical knowledge relevant to their field of study. Additionally it allows students to observe the nature of the industry and the sacrifices necessary to advance careers. The prior insights into an industry are relevant to all students, but particularly female students, who might otherwise be dissuaded from a career in mining. This paper is written from the perspective of two female undergraduate students studying Mining and Minerals Processing Engineering.

Jan 1, 2006

By T Baumgartl, A Costine, B Boshrouyeh, M Edraki

In mineral processing, the management of tailings may become increasingly more challenging with a change of ore type and the quality of water used in the plant. This, in turn, may affect the overall costs of the operation and water usage and, in the long-term, pose challenges for mine closure and rehabilitation. Depending on the applied treatment technique, the short and long-term properties of tailings are largely determined by the fine particles. Most clay materials and ultrafine particles exist in tailings from oil sands, coalmines and base metals, bringing about challenges in dewatering performance. Moreover, given the growing concern for water scarcity, the minerals industry is increasingly turning towards the use of saline water, which poses yet another challenge for tailings management. The high salt content alters the behaviour of clay particles, making dewatering a more complex process than in freshwater systems (Boshrouyeh Ghandashtani et al, 2022; Costine et al, 2018). High-density techniques for tailings management have been used for several years in the mineral industry. In this regard, one of the novel and promising dewatering methods is in-pipe or inline flocculation, where the polymer is added at high dosages to thickener underflows, giving additional (likely denser) aggregation, releasing more water on deposition compared to low solids thickening. Previous research in the field of flocculation has primarily focused on the process of flocculation itself, specifically the settling rate and size of aggregates, rather than the long-term impacts of the produced tailings materials (Liu et al, 2020; Jeldres et al, 2017). This is particularly true for the novel method of this technology, where polymer is added to the thickener underflow. Furthermore, these studies have used small-scale set-ups using buckets/beakers, plungers and mechanical stirrers for the flocculation process. Unfortunately, these methods lack the necessary control over the properties of the treated tailings, which can lead to irreproducible mixing and dispersion of viscous polymer solutions (Fawell, Costine and Grabsch, 2015). Consequently, a system that can work with a wide range of operational conditions for high-solid tailings material is essential for reliable and reproducible results. The objectives of this study were to determine the effect of different type of polymers in the presence of monovalent and divalent salts on the inline flocculation of artificial tailings. The next step was to evaluate the impact of high-dosage polymer addition on geotechnical properties such as settling rate, consolidated density, rate of consolidation and the hydraulic conductivity of tailings. In addition, this research aimed to fill a knowledge gap and investigate the feasibility of using polymer-treated tailing in removing the copper ions and then quantify the performance of produced aggregates under time-dependent processes.

Aug 2, 2023

By K Peters, C McKenzie

New Zealand has an established history of gold production beginning with the gold rushes of the 19th century in the Coromandel, Nelson/Marlborough, West Coast and Otago regions. Despite this, the number of significant modern hard rock gold operations has been limited in recent years due to a lack of sustained exploration capital and not limited geological prospectivity.The New Zealand Government is actively encouraging explorers to invest in New Zealand through a series of targeted promotional visits, more importantly through the acquisition of precompetitive regional geophysical data. Data collection has been completed over the prospective Northland epithermal district and a large portion of the South IslandÆs west coast that is prospective for both orogenic gold and intrusive related gold.Analysis of new data has been an important component in aiding the generation of exploration targets from prospectivity modelling. Determining the prospectivity of an area involves reviewing all the available data and analysing it with respect to the most up-to-date mineral system model for the mineralisation style of interest. Using the weights of evidence modelling approach, the most prospective areas for epithermal gold-silver, orogenic gold and intrusion-related gold have been identified. The key exploration parameters relevant to each mineral system are first represented spatially and then statistically combined into a single prospectivity map. New potentially economic deposits could be found by focusing exploration on targets identified from these models. The prospectivity modelling approach can greatly reduce the risk involved in mineral exploration.CITATION:Peters, K and McKenzie, C, 2013. New Zealand gold potential - using mineral prospectivity modelling to evaluate gold-bearing mineral systems in an underexplored country, in Proceedings World Gold 2013 , pp 479-486 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By M A. Tuck

Air blasts or wind blasts as they are termed in underground coal mining, occur in a number of types of underground mining where a void develops and the overlying or adjacent rock fails rapidly to allow the development of a high pressure air pulse. The effects of air blast vary widely from very low consequence to high consequence events causing multiple fatalities as occurred at North Parkes mine. The aim of this paper is to examine the phenomena of air blasts and the underlying parameters which determine the severity of the air blast event. A basic model under development is then detailed. The aim of the model is to determine the magnitude of the pressure pulse(s) developed during an air blast event. This, combined with a transient ventilation network analysis model will enable the airflows and associated pressure drops to be determined and allow the pressure pulse around the mine to be evaluated. The overall aim is to allow mining engineers and mine ventilation engineers to undertake a risk assessment of air blasts at individual mine sites, allowing working parameters to be changed to eliminate or reduce air blasts, or engineering controls to be developed to reduce the effects of air blasts.CITATION:Tuck, M A, 2013. Determining the pressure pulse for an air blast, in Proceedings The Australian Mine Ventilation Conference , pp 103-106 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

Cannington Mine is an underground, hard rock, metalliferous mine located in North-Western Queensland, Australia. Weld mesh is installed to prevent the failure of rock from between the installed reinforcement elements. Corrosion reduces the capacity and life expectancy of mesh and presents a real hazard to underground personnel and equipment as it reduces the effectiveness of the support system. Corrosion influences the economics of the mining operation through the need to conduct rehabilitation of the ground support which involves re-installing new mesh or shotcreting over the affected mesh to protect it from further corrosion. The requirement for rehabilitation is determined by the geotechnical engineer based on an individual visual assessment with little or no engineering input. It was identified that a more quantitative method was required that considered the safety and economic risks involved. A project was undertaken to develop a simple method to evaluate corroded mesh and to provide selection criteria for rehabilitation. A weld mesh corrosion classification has been developed that relates the average wire diameter of corroded mesh to the remaining capacity of the mesh. Accompanying selection criteria provides recommendations as to when rehabilitation may be required based on the estimated residual mesh capacity, the remaining development life, and the level of personnel exposure.

Nov 25, 2010

By P F. Hodkiewicz

"Our understanding of mineral resources relies on three basic steps: data capture data interpretation model construction. Until recently, all three of these steps required significant time and manual effort to produce a single resource model for mine planning, typically taking more than a year to progress from drilling to the final block model. Over the past several years, BHP Billiton has been developing innovative workflows in rapid resource modelling projects to significantly reduce these time constraints and make the process more productive by replacing manual activities with automated ones. Rapid resource modelling is the process of combining recently developed off-the-shelf technology with internal technology developments to fundamentally change the way we collect, interpret, model and evaluate geoscience data. Initiatives include automated systems and standardised workflows to make it safer, faster and cheaper to continuously update multidiscipline resource models. Specifically, rapid resource modelling workflows combine: real-time analysis of drill holes and drill samples with downhole tools and hyperspectral scanning systemsautomated interpretation of drill hole intervals based on pattern-recognition algorithmscontinuous modelling workflows using implicit modelling software. This paper outlines technology developments and workflows that provide a more thorough understanding of mineral resources to support faster and more informed strategic, planning and production decisions.CITATION:Hodkiewicz, P F, 2014. Rapid resource modelling – a vision for faster and better mining decisions, in Proceedings Ninth International Mining Geology Conference 2014 , pp 183–188 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Aug 18, 2014

Performance trials followed the commissioning of three large mine fans at Mount Isa in 1965. Actual performance characteristics were determined. These were in good agreement with predicted performance. Piezometer rings for volume flow and pressure measurement were calibrated, and the performance of some aerodynamic components of the installation was studied.Test equipment, preparation, and conditions are described.

Jan 1, 1967

By G R. Power

A useful way to assess potential productivity of SLC mines is by quantifying tonnes/drawpoint/day to be extracted from the mine. However limited industry information has been published to help mines benchmark this number. This paper assesses industry data which can be used to support estimates of potential productivity from new mines based on tonnes/drawpoint/day. The information used has been extracted from historical production schedules which indicate what was achieved, rather than what was planned. It has been assessed using an algorithm created for the purpose and is presented with discussion of varying definitions of active drawpoints, analysis of the data and inquiry into some of the underlying contributing factors.

Mar 15, 2021

By D Anderson, W Timms

"A geotechnical centrifuge can characterise and model the interaction of tailings and fluids over very long time periods by accelerating drainage and consolidation processes. This technology can be considered an environmental ‘time machine’ for designing and evaluating tailings storage projects and verifying numerical models. The Broadbent G-18 geotechnical centrifuge (2 m diameter, up to 875 rev/min) and associated equipment is a unique facility commissioned in 2011 at UNSW Australia for applied research in low-permeability materials such as mine tailings. Two centrifuge modules are available: the permeameter module for characterisation and physical modelling and the strongbox module for physical modelling.This paper presents examples of geotechnical centrifuge applications for the: consolidation of slurries and dewatering design of earthen barriers compatible with tailings chemistry prediction of contaminant mobility. The specifications and capability of the UNSW Australia geotechnical centrifuge and associated instrumentation is also presented, along with preliminary analysis of the confidence intervals associated with permeability testing of a set of samples of varying heterogeneity. Drainage velocity through a mine tailings sample increases linearly with g-level in the centrifuge permeameter until tailings consolidation occurs. Alternatively, geotechnical centrifuge experiments can be designed to limit consolidation so as to quantify permeability changes that may occur with geochemical interactions between fluids and mine tailings or earthen containments. Reactive solute transport through mine tailings can be simulated at realistic solid:liquid ratios when chemical equilibrium is maintained during geotechnical centrifuge testing. Carefully designed physical models of tailings disposal tested at accelerated gravity can therefore provide a realistic evaluation of tailings consolidation and drainage and the potential for subsurface migration of contaminants from mine tailings over long time periods.CITATION:Timms, W and Anderson, D, 2015. Geotechnical centrifuge technology for characterising the interaction of tailings and pore water over decadal time periods, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 247–252 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 27, 2015

By I T. Cameron

The commercial production of copper metal involves a sequence of purification stages. One step of this process eliminates bulk quantities of iron and sulphur from matte Cu2S(FeS to produce blister containing 95.5 per cent copper. This task is traditionally performed in the Pierce-Smith converter, a cylindrical vessel in widespread use throughout the copper industry. Typically, multiple Pierce-Smith converters are arranged along an aisle, simplifying material transfer from vessel to vessel. Materials are moved through the aisle in pots and boats, using overhead cranes. In terms of the overall process, the converter aisle represents a critical processing unitùit contributes significantly to the value added nature of the metal. The aisle is subject to significant process disturbances. Thus, improvements in the operationÆs modes and conditions have a direct impact on process profitability. As with any commercial operation, improvements are always sought to increase process performance. The general approach involves process modelling, followed by an application of control and optimisation theory to this model. The results of such a study are then applied to the real process, leading to improved performance.

Jan 1, 1998

Subsurface development requires some geotechnical conditions and challenges. Most of then are related to the compatibility between tunnelling system and surrounded ground conditions, and design criteria. Design criteria usually involve lining pressure and ground control of displacements. In order to fulfil these requirements, geotechnical parameters have to be obtained as well as construction aspects have to be taken into account for predicting the tunnel behaviour. The Brasilia Metro is presented as a case history illustrating the geotechnical conditions and challenges for its implementation. It is 42 km long, including tunnels excavated in collapsible porous soils by the New Austrian Tunnelling Method. The Brasilia porous clay presents some characteristics, which may lead to large deformations due to structural collapse. Empirical methods were calibrated for collapsible porous soils and then applied to predict tunnelling-induced settlements. Settlements due to soil structural collapse modify completely the expected settlement profile, increasing their values from the tunnel crown to the ground surface. Consequently, surface settlement trough volumes were also greater than the ground losses around the tunnel. In this case history, structural collapse of porous soils played an important role and must have been taken into account to predict correctly the settlement trough and profile. Numerical simulation has shown that settlement magnitudes due to structural collapse are strongly dependent on the soil stiffness reduction after collapse and the extent of the collapsible zone.

Jan 1, 1999

By S Nkwanyana, I Govender

Batch experiments in a 0.6 m diameter mill have shown that improvements of about 13 per cent in the efficiency of energy utilisation can be realised in ball mills by replacing 25 per cent of the ball charge by an equivalent volume of cost-free critical size pebbles from AG/SAG mills. For a mill of a given size, speed and charge filling, the rate of size reduction of ore particles depends on (i) the frequency of grinding media collisions (ii) the probability of capture of ore particles between the colliding grinding media (iii) the probability of fracture of the captured particles. The probability of fracture depends on the magnitude of collision energy. The distribution of collision energy into shear and impact events determines the relative strengths of attrition breakage and impact breakage. The efficiency of energy utilisation depends on which of the two mechanisms of breakage is more desirable in a particular milling stage. In this paper collision data from a series of DEM simulations of a mill charged with steel media and a mixture of steel media and pebbles is presented in energy spectra and spatial distribution maps. The data provides the necessary detail to elucidate the improvements in the efficiency of energy utilisation in ball mills when using a mixture of pebbles and steel media.

Aug 24, 2022

By J V. Mehrabani, A R. Sayadi

Adequate estimation of equipment costs is a key factor in a feasibility study and in evaluation of design alternatives for mining and mineral processing projects. Inaccurate early cost estimation could lead to the elimination of investment benefits. However, this estimation is complex and time consuming because of data accessibility problems and consequently access to a rapid, up-to-date and accurate tool is desirable for carrying out cost estimations.This paper describes the development of models for estimating capital and operating costs for a jaw crusher, which is used as the primary crusher for a wide variety of mineral beneficiation plants, applying single and multivariate regression analyses, together with the design of experiment approach, based on principal component analysis. Explanatory variables include gape size, length of feed opening and power as numeric (quantitative) variables and toggle type (single or double) and the existence of extra heavy duty construction as categorical (qualitative) variables. The performance of each model has been investigated and comparing the estimated R-squared (R2) of each model, the best was selected and its validity examined. The cost models include the capital and operating costs along with the operating cost components. The results indicate that the suggested best cost model is sufficiently accurate for use in feasibility studies.

Sep 26, 2011

By L E. Setiawan

The mining and milling groups at Batu Hijau are tasked with increasing SAG mill throughput by approximately ten per cent. Avenues used for this process are blasting and crushing optimisation, ore blending and predicting SAG mill throughput in relation to the geological model. This is in line with traditional æMine to MillÆ studies. At Batu Hijau, mill and mine sequencing cannot readily be configured to perform the surveys traditionally required by a æMine to MillÆ study while meeting the daily production target of 140 000 tonnes per day and processing from varying ore types in one pit. A program called BOCCOST (blasting optimisation crushing conveying optimising SAG throughput) has been implemented to capture approximately 200 variables from blasting, mining and milling operations and assign them to a common point in space in the geological model in real time. Interpretive analysis of data from BOCCOST is used to model relationships between the 200 variables to determine which and how these factors affect SAG throughput. Once these relationships are determined, the blasting, ore blending and crushing process can be optimised to generate a product that maximises mill throughput. The relationships modelled from BOCCOST are also used to generate a SAG mill throughput estimator, which can be coded into the production block model. The block model can be reconciled with the geological block model for correlation by geological domain. Once this relationship is established, SAG mill throughput domains can then be established for predicting SAG mill throughput. This SAG mill throughput estimator is then used in conjunction with revenue calculations to determine an ore cut-off, which combines these two elements to maximise metal production.

Jan 1, 2002

By R Pinksen

The Iron Ore Company (IOC) of Canada Mining and Operations Departments expressed an interest in reducing the amount of oversize material (>1 m × 1 m × 1 m) being produced and its subsequent downstream effects including in-pit sorting and reduction, damage to mobile equipment, and significant delays in the loading pockets and the primary crushers. To achieve this goal an oversize reduction project was undertaken by the mine and to date has significantly improved upon baseline measures.One key approach used to reduce the amount of oversize was the implementation of thicker emulsion. The introduction of a thicker emulsion into the blastholes provided more resistance to the forces created by dynamic water and reduced the infi ltration of the emulsion into the cracks and fissures of the rock mass. Blast results showed reduced amounts of oversize and more consistent fragmentation throughout the muck piles. Additionally, a significant reduction in nitrates leached into the mine water discharge has been realised.To determine the effectiveness of the oversize reduction project, IOC used shovel based camera technology to assess fragmentation presented to the shovel at the digging face. A digital vision system (DVS) was installed on one of the shovels to capture images that were stamped with global positioning system (GPS) locations. A large population of digital images was analysed to produce a robust fragmentation distribution baseline that was used as one of the mine key performance indicators (KPI). Changes to blasting practice were subsequently measured against the baseline KPI to assess effectiveness.

Jul 11, 2011

By R A. Pakhomov, L V. Krupnov, P V. Malakhov, I M. Dymov

The article presents results of thermodynamic calculations and laboratory studies, focusing on the cobalt behaviour during oxidative smelting of copper-nickel mattes. The compositions of the studied solutions are related to the products formed during the second stage of the converting process of copper-nickel matte at the Nadezhdinsky Metallurgical Plant (NMP) of MMC Norilsk Nickel company. These sulfide products typically contain from 1.5 to 12 wt per cent of iron. The obtained experimental results and thermodynamic calculations indicate that adjusting the CaO ratio to increase the proportion of CaO or complete replacement of SiO2 with fluxes containing CaO leads to a significant increase in cobalt recovery rates in the matte phase (with an iron concentration of 2.5 wt per cent) raising them from 30 per cent to 45 per cent. Meanwhile, the recovery rates of copper and nickel remain constant.

Aug 21, 2024

By B Young

Variable bench heights, interaction with underground workings and a steeply dipping orebody are challenges faced daily by geologists at Xstrata Zinc’s Black Star Open Cut (BSOC) Zinc/Lead/Silver mine in Mount Isa, Queensland.BSOC has been in operation since late 2004 and was developed to extract the surface extents of the Zn/Pb/Ag mineralisation mined in the underground lead mine. To date many large scale stopes and extensive development drives have been intersected and successfully mined. The stratigraphically hosted orebodies strike in a north-north westerly direction, dipping ~75° west. Ore production from the pit is currently at 4.5 Mt/a.Historically, sampling was conducted using a multiple spear technique from blasthole cuttings. This method proved to be relatively reliable when blasting benches at a consistent height, but a requirement to vary bench heights to safely collapse and then mine through underground workings reduced sample representivity to unacceptable levels.The purchase and commissioning of a production rig which had been converted for reverse circulation (RC) has allowed for the flexibility of a small rig, with the capacity to easily drill 48 m holes while ensuring sample quality. Sample quality is not the only benefit of introducing RC grade control. By collecting grade control data well in advance, informed decisions can be made by planning, drill and blast and mining departments weeks beforehand, rather than hours before firing. Additionally, seeking operational value to offset higher drilling costs has proved positive with benefits including increased confidence in orebody wireframes, accurate tonnage and grade for proceeding five benches along with the ability to representatively test metallurgical response on a tight grid spacing.

Aug 22, 2011

By D R. L Vedoy, L Botha, S P. Gumfekar, J B. P Soares

Most of the known in-place reserves of oil sands are found in Canada. These oil sands ores are mined using various processes to extract bitumen. The by-product slurry resulting from the extraction process, known as tailings, is discharged into tailings ponds. Fine kaolin clays are an important ingredient of the tailings because they remain suspended in water for many years. Current polymeric flocculation/dewatering technologies use acrylamide-based polymers such as polyacrylamide (PAM), but sediments produced using PAM-based flocculants hold considerable amounts of water due to the formation of loosely-packed flocs. Anionic polymers are better flocculants due to bridging and the charge-neutralisation mechanism. In this paper, we will compare the synthesis of two flocculants: thermosensitive, anionic flocculants and thermosensitive, hydrophobically modified anionic flocculants. The first flocculant is a copolymer of acrylic acid (AA) and N-isopropyl acrylamide (NIPAM), in which AA is the anionic monomer. The second flocculant is a copolymer of NIPAM, AA and the hydrophobic monomer N-tert-butyl acrylamide. We evaluated the dewatering efficiency of 2 wt per cent kaolin using both flocculants by comparing settling rates at different flocculant dosages, charge neutralisation ability and supernatant clarity. To better understand floc formation, we measured the floc size formed by both flocculants at different flocculant dosages. We propose that the hydrophobic monomer in the terpolymer flocculant helps expel water out of flocs, ultimately decreasing the water content in the sediments.CITATION:Gumfekar, S P, Vedoy, D R L, Botha, L and Soares, J B P, 2015. Thermosensitive, hydrophobically modified anionic flocculants for dewatering kaolin clays, in Proceedings Tailings and Mine Waste Management for the 21st Century , pp 45–50 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By I Minniakhmetov, J Ashford

Orebodies constitute naturally occurring, commonly highly variable concentrations of minerals in the earth’s crust formed through varying and highly unpredictable processes. Orebody knowledge is a core foundation of a mining company’s asset base underpinning all decisions about Mineral Resource and Ore Reserves, future production, development and ultimately the profitability and competitiveness of a mining enterprise. The decision to invest in a mineral project is usually based upon a techno-economic evaluation of the project and having clear approval pathways to gain local community support and address social and environmental impacts. The main objective of the techno-economic evaluation is to determine the optimum development sequence for the particular orebody in question and to estimate the economic viability of the project and the future return on investment to its stakeholders, balancing the inherent value of the mineral in the ground against the costs of development and market pricing. With the exception of market-driven commodity prices, virtually all revenue and cost estimates fundamentally stem from the understanding and subsequent modelling of the orebody. A reliable estimate of the ore deposit grade and other geological value-drivers is the foundation upon which the business case for future mine development and operation is intricately dependent. Orebody knowledge is, therefore, the fundamental driver of the mineral project cycle, influencing the progression of studies and consequently, the resource company’s ability to declare Exploration Results, Mineral Resources or Ore Reserves which govern the source and cost of funding available to the project. Drilling provides a ‘vector’ to the true nature of the orebody and effectively buys time to manage the technical risk associated with the orebody. Despite its perceived high cost, in both time and money terms, drilling is the only available technology for acquiring the necessary orebody knowledge to support technical and economic studies and to minimise orebody-driven cash flow uncertainty and volatility. However, like all costs, pressure to minimise drilling budgets is ubiquitous across the minerals industry. Paired with inappropriate key performance indicators, drilling is often regarded as a cost to be minimised, rather than an investment to be optimised. Furthermore, as future deposits get deeper and more complex, the collection of orebody knowledge is increasingly on the critical path for project development. The increasing cost of data collection pertaining to these deposits increases the temptation to minimise orebody knowledge gathering at the cost of long-term value as the reduction or postponement of drilling results in greater orebody knowledge risk at all stages of the value chain. Indeed the true cost of the decision to drill less is rarely known until the mine is in operation, well after the mine project evaluation team has moved on. This paper aims to promote orebody knowledge as the fundamental source of endogenous project financial risk and, consequently, its critical importance in project financial evaluation. Furthermore, the report documents experimental research into the development of an econometric model for valuing orebody knowledge. Using the density of drilling data as a proxy measure of orebody knowledge, the proposed approach integrates well-established stochastic grade modelling techniques with the mathematical mechanics of Decoupled Net Present Value (DNPV) which, combined with stochastic grade modelling (conditional simulation), lends itself to the financial International Mining Geology Conference 2022 | Brisbane, Australia and Online | 22–23 March 2022 3 assessment of orebody knowledge risk. Based on this approach, a metric is formulated, representing the minimum value of the orebody knowledge added by additional drilling

Mar 22, 2022