Search Documents

By J Seppelt, G S. Lane, E Wang

Newcrest’s Cadia concentrator operated from 1998 to 2012 with a traditional SABC grinding circuit treating Cadia open pit ore. The Cadia comminution circuit was well characterised through surveys and data that are available in the public domain, and became a benchmark standard for the industry and practitioners modelling large SAG mill based circuits. In 2012, the HPGR-based crushing circuit was introduced in front of the SAG mill to increase throughput when treating the Cadia East ore that was derived from an underground block cave. This ore was expected to be more competent and have a coarser run-of-mine size distribution.Numerous previous papers have described the design and commissioning of the Cadia HPGR-based circuit.This paper describes the improvement in comminution energy consumption resulting from the introduction of the HPGR, including identifying the impact of process complexity and an increase in ancillary energy consumption for conveyors, screening, and crushing.CITATION:Lane, G S, Seppelt, J and Wang, E, 2018. Quantifying the energy efficiency transformation at Cadia due to HPGR crushing, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 141–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By B Upton, J Mitchell

The use of hydro scaling and in-cycle shotcrete to replace conventional jumbo scaling, mesh and bolting as the primary method of ground control for run of mine development has been investigated through extensive trials at the Waroonga mine, Agnew Gold Mining Company.These trials have progressed from investigating the productivity aspects of the method through to a three month mine-wide trial, which may yet lead to the adoption of this potentially best practice ground control technique at Agnew.Ov erseas trials and research have shown that hydro scaling results in a significant improvement in the shotcrete-rock bond strength. Good adhesive bond strength ensures that the shear strength of the shotcrete layer rather than itÆs flexural or tensile strength is fully mobilised as rock mass reinforcement.This maximises shotcretes ground reinforcement capability and it is suggested that a bolt-less fibrecrete support design is feasible using the hydro scaling technique.

Jan 1, 2005

By N Guresin, R Dunne, S Blanco

This paper presents the results of research work conducted to assess if aqueous solutions of sulfur dioxide (SO2) can be used to treat roaster calcine leach residues such that recovery of gold in this material can be achieved with subsequent application of the thiocyanate (SCN-) leaching system. The project is mainly aimed at assessing an alternative use for sulfur dioxide gas generated during flotation concentrate roasting. The calcine leach residue sample used in the study contained 2.56 g/t gold. The reason for this high level of residual gold is thought to be due to gold surface passivation by thin iron oxide films, presence of gold in solid solution with refractory iron oxides and encapsulation of gold in the structure of these iron oxides.The study was conducted in three stages. The first stage was the characterisation of a sample from a roaster calcine leach residue. The second stage in the project was a set of leaching tests to assess the feasibility of using aqueous solutions of sulfur dioxide to reductively dissolve refractory iron oxide mineral phases contained in the calcine. The final objective was to assess the efficiency of thiocyanate, a gold complexing ligand stable under acidic and oxidative conditions, to extract gold liberated during sulfur dioxide leaching.The study showed that the reductive sulfur dioxide treatment of the calcine leach residues followed by oxidative thiocyanate leaching to extract gold was not a particularly efficient process as only around 20 per cent gold could be extracted. Leaching the calcine residues by any of these systems separately also extracted the same amount of gold (12 - 14 per cent) implying that irrespective of the solution potential, the acidity helps dissolution of gold encapsulating minerals, mostly hematite, but at a very slow rate. The findings on the topic in the literature and during this study show the requirement for further technical investigations and economical analyses on two cases. The first case is to roast gold concentrates to produce magnetite rather than hematite followed by sulfur dioxide and thiocyanate leaching of magnetite containing calcines. The second case is to apply a magnetic concentration process to conventional roast-cyanidation calcine residues to produce a gold-rich magnetite concentrate that can be further treated with sulfur dioxide followed by thiocyanate leaching.For both cases, the best evaluation of the sulfur dioxide leach system in extracting residual gold from calcine leach residues will require a detailed economic analysis to find out the balance between the value of the gold recovered and the loss of revenue from acid production. There are a number of roasters that do not produce acid. In these cases, a portion of the unwanted sulfur dioxide gas can be used to recover gold in magnetite containing calcines as an economic incentive.CITATION:Guresin, N, Blanco, S and Dunne, R, 2013. Leaching roaster calcine leach residues with aqueous solutions of sulfur dioxide and thiocyanate, in Proceedings World Gold 2013 , pp 129-136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 26, 2013

By C J. Moran

All mines face water management challenges. Adopting leading practice water management strategies can help reduce both operational and strategic risks. While many of the water issues faced by underground mines are the same as other operations, underground mining presents some unique water management challenges. In this paper we review trends in underground mining, water use and associated water issues. We then compile a structured set of strategic and operational risks that are pertinent to underground operations. The causes, threats, opportunities and measures for controlling or mitigating the risks are summarised. The risk compilation could provide an addendum for underground operations to the Australian governments leading practice water management handbook.

Mar 21, 2011

We are moving into an era where we experience the consequences of the skills crisis û namely many resource models have been generated by inexperienced people under pressure to deliver high quality resource estimates in unsupported environments, often without technical mentors. These resource models form the basis of our decision to pursue actual mining. This begs the question: how valid are the resource models that form the basis of our mining decisions? This paper presents various model validation tools such as comparison of input and output statistics, swath plots, sectional or bench comparisons between drill holes and models as well as a variety of other approaches. Each model validation tool currently used in industry is examined:how the tool generates results,what assumptions exist,what constitutes a pass/fail in the test, and what interpretations to consider when using the validation tool. Each validation toolÆs suitability and the inherent flaws in the underlying assumptions are also discussed. These are supported with examples of good versus bad validations. Our principles based reporting codes provide flexibility in how models are generated and what approaches and/or parameters are used to generate resource estimates. This flexibility works well when used by experienced practitioners. However, our reporting codes assume a level of experience not always available in the current skills crisis. This paper seeks to provide minimum model validation prerequisites for model acceptance and suitability, regardless of the resource analystÆs experience. As we move forward, our immediate challenge is to ensure our baseline resource models are material, transparent and competent.

Jan 1, 2009

By O Dominguez

Significant value can be added to ore supplied from the mine to the mill by measuring its quality in real time and performing grade control additional to that within the mine. Responsibility for ore quality between the mine and mill stockpiles is not always clear due to operational siloes so geologists and mining engineers need to be involved collaboratively with metallurgists to optimise ore value prior to processing. Sensors, such as the GEOSCAN-M which utilises high specification Prompt Gamma Neutron Activation Analysis (PGNAA), that measure conveyed ore flow representatively (continuous and fully penetrative) and in real time have been used in the minerals sector since 2003 and have been successfully applied in multiple commodities. Quality can be measured within the mine where material is conveyed underground or in-pit. Bulk ore sorting is used to divert increments of waste from the ore stream to upgrade material sent to the crushed ore stockpile (COS) as well as to create run-of-mine (ROM) stockpiles of different qualities to maximise blending opportunities and accommodate processing priorities, eg blending out deleterious content. The real time composition measurement can be combined with moisture and fragmentation analysis data for improved ore type characterisation, to control ore blending, for feedback to the mining schedule and block model reconciliation, and feed forward control for grinding and processing operations. The paper discusses various parameters measured and derived in existing operations that are used to maximise coarse waste rejection and metal recovery, optimise plant feed quality consistency, and reduce consumables; power, grinding media, water, reagents, and minimise fine tailings generation. Innovative geometallurgy applications are also discussed.

Mar 22, 2022

By Bush P. R, Hale M, Dixon C. J, Wheatley M. R

Barium anomalies in drainage sediments can act as indicators of barite mineralization and path- finders for lead-zinc mineralization. Their detection in an arid climate has been investigated in two areas of Saudi Arabia. At Rabigh, 150 km north of Jeddah, barium anomalies found in wadi sediments reflect barite veins which occupy Tertiary faults in Precambrian metavolcanics and granodiorite. In the Wadi ad Dawasir area, 650 km east of Jeddah, the sediments of wadis draining the Jabal Tuwayq escarpment have been found to contain anomalous concentrations of barium derived from diagenetic barite in the Sudair formation siltstones and shales. Barium dispersion in these wadis is predominantly clastic. Near to the source rocks, barium occurs in relatively coarse grains of barite. Owing to the three well-developed cleavages of barite, its crystals readily break into cleavage flakes during fluvial transport in flash floods; as a result, the longest anomalous dispersion trains are found in the 250 to 600 um fraction. Wadi sediments finer than 250 um have relatively constant and low barium contents, being dominantly composed of windblown sand.

Jan 1, 1988

By D Morrison

Backfill is usually considered a necessary evil that contributes little to the principal objective of the operation, ore production. Consequently, it is relegated to an auxiliary role in the operation with minimal equipment and resource allocation in planning and is only superficially considered during feasibility studies. In many mines, the inadequacy of the design and operation of the backfill system ultimately leads to frequent delays, excessive costs and, in the worst cases, major instabilities which result in reduced ore production and lost or unrecoverable ore reserves. The primary objective of backfill is to prevent the progressive deterioration of mined out excavations. With the exception of narrow vein operations, it is too weak to alter the mining induced stress regime and control stress concentrations caused by stope extractions. However, the direct benefits of backfill include the possibility to consider a wider range of mining methods, recovery of 100 per cent of the planned resource and the selection of a stoping sequence that minimises the regional stability problems that cause production shortfalls in the later years of mine production. Indirectly, backfill is a practical means of solving other issues, such as waste disposal, that impact the viability of mining. In Australia, the geotechnical conditions of many mines are becoming more difficult and increased attention to the importance of backfill is warranted. This paper describes realistic aspects of backfilling and the positive impacts a well co-ordinated fill system can have on mining activities as a whole. Examples are presented where an integrated approach to backfill systems have offered significant benefits to the operation.

Jan 1, 1998

By N Madani, Y Abildin, E Topal

Mine planning is a crucial part of all mining industry projects, and nowadays, geometallurgical mapping through advanced computer technologies provides an opportunity to involve metallurgical responses of a deposit into 3D block model in order to optimise mine planning activities, especially for production forecasting. Including these metallurgical parameters apart from traditional geology and grade-based attributes into resource modelling leads to an extensive approximation for the economic maximisation of mine production due to better forecasting, planning and increasing certainty and the reliability of the resource model (Macfarlane and Williams, 2014). Commonly, geostatistical techniques and algorithms are used to produce models with the high resolution (Brissette et al. 2014; Deutsch et al. 2014; Tolosana-Delgado et al. 2015). The accuracy of the modelling procedure deeply depends on a reliable block model, produced by spatial analysis of corresponding variables that define the geological, metallurgical, mineralogical and chemical behaviour of the deposit. However, there are special cases, where the application of enhanced geostatistical methods is required, to solve the occurred difficulties between variables with multivariate complexities. For example, in oxide copper deposits, the soluble copper grade is a percentage of total copper grade and recoverable by heap leaching processes (Emery, 2012; Hosseini and Asghari, 2015). Hence, the joint spatial modelling of these variables has two difficulties.CITATION:Abildin, Y, Madani, N and Topal, E, 2018. Forecast the mineral processing destinations based on spatial interpolation of geometallurgical variables, in Proceedings Complex Orebodies Conference 2018, pp 2–5 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 21, 2018

By D Price

Mining at the Tuckabianna Mining Centre in the Murchison district of Western Australia ceased in 1997, after the production of 550 000 ounces of gold at an average grade of 2.5 g/t from 22 separate open pits (Tectonic Resources, 2006). Like many historic mining camps in WA, Tuckabianna was considered exhausted of gold, such that an economic project could not be sustained on the existing resources. Since 1997, three separate companies have owned the Tuckabianna leases. Each of these companies completed minor exploration and some form of mining study to determine if mining could be sustained. All three companies concluded that the remaining resources were insufficient to support an economic project. Silver Lake Resources acquired the adjacent Tuckabianna, Comet and Moyagee projects in 2007 with a combined resource base of 693 000 ounces of gold in 11 separate deposits. In September 2009, Silver Lake commenced exploration in the Murchison targeting extensions to the main resources at the three project centres and completing targeted regional exploration across the lease holding. At the same time, a detailed evaluation of all historic drill data was completed and all resources re-estimated. This has culminated in the resource base increasing to 1.5 million ounces of gold in 20 separate deposits, with two new discoveries being made. In August 2010, a mining feasibility study was commissioned. Preliminary results from the study indicate that an economic stand alone project can be sustained for a minimum of five years. The ability to bring the remaining resource from a once unloved project into production is due to a number of factors: historically high gold price, combining adjacent projects into a single operation, evaluation of all resources regardless of size and grade, and well funded exploration directed to both resource extensions and new discoveries. Using the Tuckabianna Project as an example, this paper attempts to outline the strategy Silver Lake used to define the resources to justify the capital expenditure required for production, and give a summary of some of the successes and failures made as the projects progress towards mining. Examples of where being too rigid and over exuberant have resulted in less than optimal use of expenditure are used to high-light the difficulties in exploring in mature terrains. Evaluation of the success of a company’s exploration strategy at all scales from project acquisition to target selection is critical to the success of future project development. This paper has been part of that process for Silver Lake with some interesting discussions and insights being made. It is hoped that some of the points discussed can be applied to other projects to help achieve the best outcome from the assets available to a company.

Aug 22, 2011

Resue or split face firing has the potential to separate ore and waste rock into separate muck piles within a stope. Thus split face firing has the potential to reduce dilution of the ore stream to be transported to the surface for subsequent processing. It also potentially reduces the total amount of broken rock needing to be transported out of the mine as the waste material is physically separated from the ore as part of the blasting process. Waste can therefore be used directly from the stope to backfi ll other mining areas. This paper reports on the results of split face firing trials at the Hillgrove mine in NSW and analyses the results of these blasts.

Aug 1, 2010

By K P. Tully

In August 1996 a Microseismic Monitoring System developed by ISS International Limited was installed at the Pasminco Broken Hill Mine -Southern Cross area. The project aims were to:Assist in daily safety management in a mine environment which exhibits one of the highest occurrences of microseismic activity recorded in the Australian mining industry. Be used as a proactive tool in design of future development and stoping. The project to-date has been an unqualified success in achieving both goals. Consequently the system is being expanded from 6 to 14 monitoring sites.

Jan 1, 1998

By C Garrido, J Barrera, H Alvarez, L Perez, S Ramirez

In recent years, there has had a greater recurrence of studies and projects that consider tailings filtration followed by dry stacking to reduce the consumption of fresh water, the space required for disposal, and, eventually, to reduce the costs of the project. In addition, this technique could be required to meet new environmental restrictions to extend the life-of-mine of existing plants or to enable the development of new projects, especially in areas of high social interest. This article is intended to describe the most relevant technical aspects of the design and implementation of an iron ore tailings filtering system and its final overland disposal as well as physical and metallurgical surveys, and laboratory and pilot testing. Furthermore, it is presented how these activities are inserted in the project development to rationalise the resources. The case under study considers an iron mineral wet magnetic concentration processing plant. The outcome tailings are dewatered by means of thickeners, where the overflow water is recycled back to the plant. The underflow slurry is pumped into intermediate storage tanks before proceeding with further dewatering and final disposal. The project consists of a tailings filtration plant, belt conveying systems, a temporary stockpiling system, trucking loading and transportation system, moisture-conditioning facilities (spreading and airing), and final disposal facilities (compacting). Due to the stickiness of the filtered tailings that governs the belt conveying system design, the operating moisture range must be established. Besides, proper technical aspects such as planning, executing, and analysing both the laboratory and the pilot testing data to validate process design parameters; selecting filters; defining spare filtering capacity; handling the out-of-range filtrated moisture; sizing the belt conveying system; configuring the equipment involved, must be considered.

Nov 8, 2021

By E Cunha, D Roldao, TáTamantini, J F. C L Costa, T Webber, C Monteiro

The main problem of geostatistical simulations is to reproduce the real characteristics of the mineral deposit when there are few conditioning data. In this case, the geological interpretation, based on structures, geophysics and geological maps, plays the major role in terms of resource evaluation.The paper investigates the use of principal component analysis (PCA) to help classify multiple geostatistical categorical simulations considering the similarity among them and the interpreted model, herein referred as training image (TI).An iron deposit with four lithological facies, in a specific horizontal plane, was used as case study for two-dimensional (2D) simulations. Sequential indicator simulations (SIS) was used to obtain ten equally probable 2D images, which were generated and compared against the interpreted model (TI).In this study, 11 random variables are comprised by the vector of ten SIS realisations plus the training image (TI). The similarity between the TI and each SIS realisation is measured using the angle between the TI and SIS vectors projected in the new coordinate systems (PCA factors). It is possible to order the SIS realisations from the highest to the lowest PCA factor taking into account the TI similarity.The visual analysis of the images shows coherence in the PCA results as a method to measure similarity. This methodology can be used as a post-processing tool to rank simulation results and to select the ones which better represent the prior known geology or to compare the quality of different methods of simulation.

Sep 26, 2011

By S Robinson, A Turner, R Dale, C Butler

"Sandfire Resources NL- (‘Sandfire’) DeGrussa definitive feasibility study (DFS) identified geometallurgy as a major factor in achieving optimum plant performance at the DeGrussa mine. A geometallurgical initiative was created to proactively investigate this issue, and a key initial achievement was the 2013 paper by Condon et al (2013) on developing a working geometallurgical model from first principles. Significant advancements in Sandfire’s geometallurgical understanding since that publication now shape how information is presented and communicated.The main geometallurgical parameters so far identified as critical factors affecting plant performance are Cu:S ratio, iron sulfide mineralogy, talc carbonate content and sphalerite content. Apart from specific mill strategies, geometallurgical issues have been managed through communication between departments and strategic run-of-mine (ROM) pad management.This paper uses the current theories of geological evolution of the volcanogenic massive sulfide (VMS) deposit at DeGrussa, to discuss the variability between the orebodies C1, DeGrussa (sea floor mounds) and C4, C5 (sub-sea floor replacement) to highlight the different issues each orebody is expected to encounter when processing.A zone of altered low-grade mineralisation surrounds the main orebodies at DeGrussa, referred to as a halo. Talc minerals are often patchy within this halo and often cause significant recovery issues during processing. This halo has been successfully modelled using MgO as a proxy. The ability to model the talc material assists with both identifying potentially problematic zones for processing and geological interpretation of the ore deposits evolution.Early in geometallurgy studies at DeGrussa it became apparent that it would be useful to identify processing performance prior to mining. This necessitated the incorporation of specific sulfide species into the mining block model. These attributes are interpolated from the logged sulfide estimates allowing a clear picture of the abundance of each mineral type within a defined area.In conjunction with the block model a geometallurgical factor (GMF) graph was developed, identifying sulfide mineralogy based upon mineral assays. These two recent additions to the model provide a clear picture of the nature of the ore sources that will be presented to the processing plant.The future of geometallurgy at DeGrussa will see these tools used to aid mine scheduling with a view to further improve processing recoveries.CITATION:Butler, C, Dale, R, Robinson, S and Turner, A, 2016. Geometallurgy – Bridging the Gap between Mine and Mill: a Case Study of the DeGrussa Geometallurgy Program, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 77–88 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By J Salaya, J Kwak, L Keeney, S Dehkhoda

In addition to volatile commodity prices influencing decision making, in recent years, social and environmental performance have become important decision drivers within the mining industry. There are increased demands from stakeholders, communities, and governments to ensure that raw materials are mined, processed and refined responsibly. The industry also faces the challenge of better managing its waste, which has led to severe consequences when not done properly. The high commodity prices of the late 90s and early 2000s encouraged larger economies of scale and drove mining companies to extract large volumes of rock for separation and concentration at the downstream processes. Over time, as ore grades dropped, the cost of mining escalated and tailings volumes grew. This arduous process also caused strains on recovery cost and performance. Scarcity of water and energy resources coupled with increased production demands and higher operating costs are putting pressure on companies to find innovative ways to increase mining intensities. Hatch’s value chain optimisation methodologies, specifically Grade Engineering® and early waste rejection of the mine, have been of interest to intensify operational performance and minimise waste generation. Enabling preconcentration of the plant throughput, the methodology has significant potential to improve overall metal production and reduce water and energy intensities, whilst minimising wet tailings. Using representative data from real world mines, this paper reports on a case study that evaluates the impact of preconcentration using sensor-based ore sorting on downstream process improvements as well as energy, water and tailings reduction. Financial and economic viability of this technique is presented for both brownfield and greenfield implementation cases. The results show that business case for preconcentration is best when: the distribution of metal in the run of mine ore is negatively skewed and left tailed; mining costs are low; energy, water and tailings management costs are high; and low cost methods of recovering pay metal from low grade material are available.

Nov 10, 2020

A number of mineral deposits occur in close proximity to the Pacific plate fronts. Among these deposits are gold-silver and the base metal sulphide deposits of copper, zinc and lead. Gold deposits that commonly occur in these areas are of hydrothermal origin. Of these the epithermal deposits have attracted the attention of the exploration geologists as well as the metallurgists. One vital aspect of the activity of the geologists is the development of models for epithermal gold mineralisation in the Pacific Rim. These models can also be used by metallurgists for predicting gold extraction processes. This paper reviews the mineralogy, fineness and the host minerals of gold and examines the data in the light of gold mineralisation in the southwest Pacific Rim. The gold mineralisation models proposed for the Pacific Rim have been used to predict gold extraction processes suitable for the various mineralisation types. Discussed also are the mineralisation and treatment processes of some selected epithermal gold deposits and gold-rich porphyry copper deposits in Indonesia, Papua New Guinea, Solomon Islands, Fiji and New Zealand.

Jan 1, 1999

By R Nicholson, N D. Cox, N W. A Lambert

"This paper reports on the long-term operation of a particle density meter (PDM) at the Bloomfield coal handling and preparation plant (CHPP). This unit has been operating continuously for over three years, providing real-time data to the operators to allow the monitoring of flotation circuit performance. PDM outputs include slurry density, solids concentration on both mass and volumetric basis, and particle density. Knowing the average particle density of a stream allows for the optimisation of the process in real-time.The calibration of the solids concentration measurement device proved very difficult as the factory calibration techniques and existing laboratory analysis did not give accurate or reliable results. The solids concentration device had to be re-engineered and a new calibration method developed that gave accurate and repeatable results. Independent verification of samples taken from the PDM was undertaken as part of the trial process.The operational reliability of the PDM was a major point of investigation. The initial installation of the unit revealed issues with large, misplaced material of up to 20 mm periodically entering the unit, leading to feed blockages. The presence of these misplaced, oversized particles in the flotation circuit was resolved by installing innovative automatic back flush systems on the PDM.From a plant perspective the PDM has been an invaluable instrument that has enabled irregularities in the flotation circuit performance to be identified, which sampling had not and could not readily identify. This was achieved by close monitoring of real-time tailings composition on a minute by minute basis over short and extended periods. Variations in the tailings stream with respect to particle density and solids concentration were traced back to other issues in the plant. In addition, the PDM has allowed cell optimisation with respect to reagent dose rate to be improved. The PDM with real-time feedback can negate the need for large sampling campaigns and analysis during plant optimisation programs.Citation:Lambert, N, Cox, N and Nicholson, R, 2016. Particle Density Meter, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 245–250 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By F Cesnik

The past few years has seen a concerted effort to improve the recovery of gold along with its co-product copper from the æhigh-gradeÆ Ridgeway concentrator at Newcrest Mining LtdÆs Cadia Valley Operations. A number of initiatives were identified and implemented, culminating in a sustained improvement in recovery of approximately three to four per cent for both metals. The key projects that contributed to this improvement included the installation of a 355 kW Metso stirred media detritor (SMD) to create a regrind circuit, installation of froth crowders on the scavenger circuit, installation of a Falcon SB2500SE gravity concentrator as part of the regrind circuit to improve gold recovered to bullion on-site and the optimisation of the grinding circuit to reduce the 80 per cent passing size (P80) of the primary grind from 160 to 121 ¦m for the same throughput via process control, cyclone and ball charge optimisation. This paper will focus on the supporting test work, where applicable, that was used as the design basis for the project, but more importantly the plant data before and after the changes to clearly identify the improvements to plant recovery.

Jan 1, 2007

By J E. Lynch

The Weda Bay nickel and cobalt laterite deposits on Halmahera Island, Republic of Indonesia were first drilled in May 1996 by Strand Minerals Pte Ltd (Strand). Subsequent exploration has delineated four large laterite provinces, parts of which have been diamond drilled to outline an indicated nickel resource of 59.9 Mt of 1.51 per cent Ni and 0.09 per cent Co within a total indicated and inferred resource of 117 Mt of 1.36 per cent Ni and 0.12 per cent Co. The project is held as a Seventh Generation Contract of Work (COW) by PT Weda Bay Nickel, which is jointly owned by Strand (90 per cent) and PT Aneka Tambang (ten per cent). Strand is a wholly owned subsidiary of Weda Bay Minerals Inc, a company listed on the Toronto and Alberta Stock Exchanges in Canada. Halmahera is located in the north-eastern part of the Indonesian archipelago at the convergent junction of three major plates and is a region of considerable tectonic and geological complexity. The western arms of Halmahera form a classic volcanic island arc while the central region and eastern arms contain ophiolite complexes and interlayered sediments. The extensive areas of laterite discovered at Weda Bay have developed over serpentinised harzburgites and dunites of pre-Cretaceous age. Weathering of these rocks has produced laterite profiles that are enriched in nickel and cobalt. There are three economically mineralised laterite types, namely limonites, ferruginous saprolites and saprolites and all are amenable to rapid pressure acid leaching with recoveries of 98 per cent nickel and 94 per cent cobalt in less than 20 minutes.

Jan 1, 1999