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The importance of orebody definition and optimisation in project development cannot be overstated. Inappropriate orebody definition is the single most important reason for project under performance and/or failure. Without the firm foundation of good orebody definition, the structure of a project cannot be assembled reliably. Many factors need to be considered in the process of orebody definition. These factors are well summed up in paragraph 123 of The Institute's Code and Guidelines for Assessment and Valuation of Mineral Assets and Mineral Securities (Valmin Code). The factors range from the initial geological data through assaying, geotechnical and hydrogeological factors to mining and metallurgical considerations. There are other factors which also need to be considered including marketing and environmental factors. This paper briefly reviews some of these factors and their impact on project development. Three examples are presented where one or more of these factors have had significant impact on the development of the Project.

Jan 1, 1997

The cost of constantly extending a decline tunnel that plays a part in the actual extractive process is a revenue cost. The characteristics of such a decline tunnel are that it is dug in a series of relatively small excavations. It follows the ore body and is dug as close to the ore body as practicable. In addition, the decline allows for the extraction of ore in the immediate vicinity, with the ore being extracted in a relatively short period of time.

Jan 1, 1990

Bougainville Copper Limited (BCL) ships about 600,000 dry tonnes of copper concentrate per annum to Japan, Germany and Spain, with some spot sales to other countries. Concentrate sales value for 1984 was 335 million US$, representing almost half of PNG exports. Contained metal determination is based on physical and chemical measurements on representative samples. The entire procedure is subject to statistical uncertainties and possible systematic errors; losses as high as several percent of contained copper or gold are common and frequently are regarded as unavoidable. In this context, the function of the chemical laboratory is to identify and eliminate such errors and recommend correct technical procedures for possible inclusion in sales contracts. BCL's marketing management has encouraged this approach and the close buyer versus seller agreement is beneficial for all parties involved. BCL participates in the respective technical committees of the Standards Association of Australia (SAA) and the International Standards Organisation (ISO). Standard methods for sampling and analysis of copper, lead and zinc ores and concentrates are in course of preparation, some being due for publication shortly.

Jan 1, 1986

A new bench blast design method and its realization with the assistance of the computer is introduced. The basic design principle is to define a rhomb cell, called fully- fractured zone, through a series of full scale bench crater tests and apply this geometric pattern in multi-hole, multi- row blast design. To illustrate the design method, the optimization process and assessment of blast performance are presented in the context of a case study.

Jan 1, 1992

By S Vianna

Mineralogical information obtained from plant surveys is subject to errors, both due to sampling and experiment. To reduce these errors, and to ensure that information is consistent, a data reconciliation model has been developed for mineralogical data. Its capability includes mass balancing size data, total assays, assays within size-classes and liberation data. Unlike any other mass balance package, this package also allows reconciliation of the complex mineralogical information. For example, particles cannot simply be treated as binary, but consist of combinations of many minerals. Hence the distribution of mineralogical information is multidimensional and the mineralogical distributions are referred to as multiphase. In this paper, the different levels of mass balancing are explained, including how to mass balance liberation data. Furthermore a new technique based on probability theory can be used to infer distributions even when there is insufficient information to perform a mass balance, and this technique is also explained. Results for various stages are given.

Jan 1, 2002

By Bell MG

At various decision points in the development of a project, a developer, joint venture partner or financial institution may require an independent review of the basic assumptions and technical aspects of the project. This type of review or technical audit is becoming a more common feature of the project development process. This feature has evolved because of the need of investors and lenders to be more confident of the viability of a project by the confirmation of its technical and cost aspects. Technical Audits offset some uncertainties introduced by the combination of longer development periods for, projects and the highly dynamic world economic scene. This paper reviews the place, nature and process of the technical audit by examining the circumstances when it might be needed, the typical scope of work or brief, the responsibilities of and relationship between the auditor and the client, and the auditing procedure. Detailed aspects of technical audits are discussed followed by a case study of the Hail Creek Coal Project Audit.

Jan 1, 1983

By Baker EM

The Kidston orebody is a kilometre diameter breccia pipe of Permo-Carboniferous age' assoc- iated with rhyolitic dykes and hosted by Proterozoic granodiorite and metamorphic rocks. Mineralization and alteration are associated spatially and temporally with brecciation and rhyolite intrusion. Three stages of alteration have been recognized: pre-brecciation, and early and late stage post-brecciation. Gold is known to be particularly associated with late stage post-brecciation cavity infill and sheeted veins. Fluid inclusion and stable isotope results show the importance of moderate-high temperat- ure, saline, magmatic fluids in the early stage mineralization and in the brecciation of the pipe. Later periods of alteration, accompanied by gold deposition, are associated with fluids only slightly depleted in 180 relative to mag- matic waters, unlike the strongly 180-depleted meteoric water typically found in hydrothermal Permian and Carboniferous deposits of eastern Australia. The 5180 values and low salinities in fluid inclusions suggest the fluid may have formed from vapour condensation from a magmatic fluid. Fluid inclusion data and alteration assemblages define the prevailing chemical conditions. Gold transport under these, conditions would have been primarily as a bisulfide complex.

Jan 1, 1987

This paper deals with the Australian taxation laws, and in particular the income tax laws, as they apply to mineral exploration and development both in Australia and off-shore. The Australian tax laws are imposed principally at a Commonwealth level. The most important Commonwealth taxes are Income Tax, including Capital Gains Tax, Fringe Benefits Tax, Sales Tax, Customs Duty, Excise Duty and Bank Accounts Debits Tax. The States of Australia impose Stamp Duties and Financial Duties, Payroll Tax and Land Tax. The Australian Income Tax Law including Capital Gains Tax, is the most significant tax in the country. The principal features of the income tax law are as follows: tax is imposed on a taxable income being the assessable income less allowable deductions; a full imputation system of company tax applies; a foreign tax credit system applies to both companies and individuals; capital gains are taxed as income and subject to income tax rates but the gain is inflation adjusted. Australia has negotiated tax treaties with most of its trading partners based on the OECD model; and special tax concessions apply to the mining industry.

Jan 1, 1987

By M Bezzina

In 1995 Standards Australia International Limited æSAIÆ published a risk management standard titled AS/NZS 4360 Risk Management. It was the first such standard published by a recognised formal standards body anywhere in the world and it put Australia at the leading edge of the risk management discipline. Many Australian and international organisations have utilised the risk management standard and it is one of SAIÆs most important and popular standards. Since its publication in 1995, the risk management standard has gone through a major revision in 1999 and is currently undergoing another such review, which is due for completion in 2004. This paper will chart the application of the standard within certain key organisations since its inception in 1995. A brief overview of the methodology behind AS/NZS 4360 will be presented as well as an overview of supporting and related standards. It is prudent to base risk management and other management system issues on existing and tested standards rather than creating new proprietary approaches. Examples of areas in which the risk management standard might be applied in the mining industry are given, subject to the specific operations of each company: technical, commercial, environmental, informational, and safety and regulatory.

Jan 1, 2003

A company tax rate based on profitability return, or as more commonly expressed, a resource rent taxation scheme has been intro- duced at various stages in the past by both Australian state and commonwealth governments. At present a number of overseas countries are applying this form of legislation to the taxing of sections of their mining industries. Within this study, ways in which this type of tax has been used are examined. The form in which the tax can be applied varies. 1. It can be selectively or universally applied. 2. The base on which economic return is calculated can be selected in a number of ways. 3. It can start operating only when high profit levels exist, or alternatively be the basis of a total taxation scheme. The implication for the Australian mining industry of the introduction of different types of resource rent taxation schemes is assessed within the context of previously enacted systems.

Jan 1, 1978

The first thing to be aware of is that the warming effect of carbon dioxide is strongly logarithmic. Of the 3¦ that carbon dioxide contributes to the greenhouse effect, the first 20 ppm has a greater effect than the following 400 ppm. By the time we get to the current level of 384 ppm, each 100 ppm increment will produce only about 0.1¦ of warming. With atmospheric carbon dioxide rising at about 2 ppm per annum, temperature will rise at 0.1¦ every 50 years for the next couple of hundred years before the effect becomes minuscule. The warming of the 20th century, as the Earth came out of the Little Ice Age, was a consequence of short, high-amplitude solar cycles. A number of solar physicists have predicted that the next solar cycle, Solar Cycle 24, will be quite weak. Based on the correlation between solar activity and the EarthÆs climate, a temperature decline of 2¦C is predicted for the mid-latitude regions over the coming decade, equating to the experience of the Dalton Minimum. Anthropogenic warming due to carbon dioxide will not ameliorate this temperature decline. Increased atmospheric carbon dioxide is wholly beneficial due to itÆs fertilisation effect. Efforts to inhibit Australian carbon dioxide emissions are exactly wrong in science.

Jan 1, 2009

A feasibility study will fail its objective if it does not identify and then correctly assess, all the risks which could have a substantial impact on the financial viability of a project. Before this assessment can be undertaken, one needs to understand the risk profile of the entity which is making the decision about the project. Some of the commonly encountered issues when assessing project risk are related to the problem of not being able to see the wood for the trees. In any risk analysis it is important that conservatism does not strangle a viable project; that the variables are internally consistent with each other, that reality checks are carried out and that appropriate expertise is used. Sensitivity analysis forms a part of the overall project risk assessment; however, it can only test those variables which have already been identified in the financial model. The most useful tool in performing a sensitivity analysis is Monte Carlo simulation. When properly used, it provides a more real world scenario than the simple adjustment of key variables by ¦ 10 per cent one at a time. Monte Carlo can provide valuable information about the robustness of a project. Project risk and sensitivity assessment is prone to the analysis paralysis syndrome. The focus should be on quality rather than quantity.

Jan 1, 1997

The purpose of this paper is to provide some practical commercial advice in relation to issues of access and trespass during exploration. It is not my intention to provide a detailed analysis of the applicable law because this is not the appropriate forum for latin maxims and turgid case studies. Instead I will explain the issues in sufficient detail to enable those who are not familiar,with the legal concepts to understand their obligations and responsibilities in relation to exploration activities. Take as an example a situation where a company (for the sake of attempted light relief, called Rogue Mining) holds an exploration tenement adjacent to one held by Lamb Exploration. In conducting aerial exploration activities over its own tenement Rogue overflies the tenement held by Lamb, doesn't turn off its equipment and accidentally collects data in respect of the adjacent land. In analysing that data it becomes apparent to Rogue that there is a substantial anomaly on the adjacent land of which Lamb is apparently unaware. Rogue subsequently negotiates to purchase an interest in Lamb's tenement.

Jan 1, 1995

By J-M Rendu

Substantial progress has been made over the last ten years in the development of uniform national and international standards covering the definition, estimation and public reporting of mineral resources and mineral reserves. Agreement between the major participating countries has been reached, which includes the requirement that a Competent Person prepare and approve publication of mineral resources and reserves. Most national regulatory organisations have accepted the new standards and have included them in the rules that must be followed by mining companies operating under their jurisdiction. These developments are the result of a concerted effort on the part of professional societies, national regulatory agencies, international organisations, and many dedicated individuals. The historical development of these standards is summarised in this paper. Accepted definitions of mineral resources and mineral reserves are discussed, as well as the definition and role of the Competent Person. Additional effort is needed before the international standards are fully understood, accepted and followed by mining companies, regulatory agencies, the investment community and the general public. Steps being taken toward development of an International Code are outlined.

Jan 1, 2002

Research and Technical Services, Department of Mines Western Australia The nine papers received for this technical session cover a very wide range of hydrological problems in various parts of the world. Three of these papers deal with hydrological predictions for new mines, while three are concerned with the prediction of water chemistry. The three remaining papers deal with gas injection as a dewatering tool, discharge formulae verification and the use of a physical model to predict subsurface strata movement and fracture development due to longwall mining. Hydrological problems in mine planning represent a major risk in many mining operations, booth as a potential life or equipment hazard and a major financial risk. The initial paper selected to review was therefore one by the president of a gold mining company, rather than by one of the specialist scientists, to remind us all that the main reason problems are faced and overcome in the mining industry is usually a commercial one. In one commercial undertaking, the ability to accurately assess future risk is a highly desirable planning tool and hence in mining, the ability to predict the nature and magnitude of hydrological problems is n i-an varxi imnnrfant

Jan 1, 1988

Computers are playing an increasing role in the management of technical data in mines. Companies are re-assessing the role of their data processing departments as users demand computer resources in non-accounting areas. Data of all kinds is now being seen as a, company resource, and the role of computing professionals is to help to manage the data flow, not merely to manage computers. The concept of distributed data bases puts the responsibility for data entry, editing and updating with the user. This challenges conservative views of centralized control of computing, suggesting, instead, centralized co-ordination. A survey of the possible applications of computers in technical areas points up the special requirements of handling raw, processed and consolidated technical data. Technical data bases have become flexible as mini- computer hardware and software have rapidly developed. Management has the ultimate responsibility for efficiently administering corporate data bases, and it must ensure suitable policies are developed for this purpose, with enough flexibility to cope with the impact of fast changing technology.

Jan 1, 1980

The paper examines the possibility of applying the monolithic packing technique developed in the UK to the division of wide development drivages in Australia, so enabling double entries for longwall retreat panels to be created from shortwall units. The monolithic pack of the UK therefore becomes a monolithic partition in this proposed Australian application. A method developed for the analysis of the load development in packs installed behind longwall advancing faces is adapted and used to predict the support performance of the monolithic partition. Conclusions are made regarding partition construction and possible rates of advance.

Jan 1, 1986

The medical evaluation of the health effects of dust exposure in the mining industry should be based on the premise that the results of the medical examinations will be considered in relation to the previous history of exposure to dust.(l) To this end the Mines Regulation Act and the Regulations under that Act in West- ern Australia provide for: the prime responsibility for dust sampling to rest with the mining companies; the appointment of a Ventilation officer by each mine and the sampling and record- ing by him of dust and toxic gases in work places at three monthly intervals, or more frequently as required; the appointment of a Mines Medical Officer who shall make provision for the medical examination of persons and the prevention of occupational diseases; the appointment of a Ventilation Board, consisting of the State Mining Engineer, the Senior Inspector of Mines for the State, an Inspector of Mines having specialised training in ventilation tech- nology, a medical practitioner having specialised experience in occupational health problems relevant to the mining industry, and a Scientific Officer having duties under the provisions of the Clean Air Act, 1964;

Jan 1, 1979

The Green Parrot and Reward stratabound silver-lead (copper-zinc) deposits are located in the eastern part of the Arunta Block. At Green Parrot, mineralisation is contained within a north-south striking lode horizon comprised of elongate lenses of massive garnet or calcsilicate-carbonate "lode rocks" with intercalated sericite-biotite schist and laminated biotite-feldspar schist. The "lode rocks" are increasingly calcareous to the west. The mineralisation is broadly zoned with an increase in lead content and decreases in copper and silver contents from east to west. The principal sulphide minerals are galena, sphalerite and bornite. The Reward deposit lies adjacent to a lens of massive garnet "lode rock" which is contained within garnetiferous sericite-quartz schist. Primary mineralisation consists of galena, chalcopyrite, sphalerite and pyrite. Both deposits are associated with a substantial thickening of the lode horizon which is narrow and discontinuous along strike from the Green Parrot and Reward deposits.

Jan 1, 1984

By Baafi EY, MacKenzie -Wood P

An experienced and reliable knowledge of fire fighting procedures is necessary for mine emergency situations. Since experts in this area are scarce the technology of expert systems lends itself as a suitable component in the decision making process. This paper describes an expert system that is being developed for this purpose. The expert system. RESCUE. is a knowledge-based computer programme which incorporates the judgement, experience, rules of thumb. mine environmental conditions as well as human intuitions in the mine rescue operation. RESCUE makes decisions such as whether or not the affected area should be sealed.' whether or not rescuemen should be withdrawn, and which fire fighting agent is most appropriate for the situation. The IF..... THEN rules written in the VP-EXPERT shell contains antecedents and conclusions based on environmental as well as other conditions prevailing in the mine. For example, the CO/Oz deficiency ratio indicates the progress of heating; explosibility trends are given by varying flammable gases C CH4,H2,CO) in relation to oxygen concentration, and barometric pressure falls may affect explosibility by increasing CH4 content in workings. The interaction of such numeric-based rules with others rules reflecting the experience and judgement of the experts assist the system to arrive at its conclusions and subsequent course of action.

Jan 1, 1988