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The Northparkes E26 Mine is AustraliaÆs first block cave mine. This paper presents an outline of the design and construction philosophies that drove the project development and details the excavation, ground support and construction methods used. Features of the block caving method at Northparkes include:high production rates from multiple drawpoints;hard blocky ore fractured along gypsum veins; andloading/unloading of openings due to mining induced stresses.The drawpoints are subjected to high abrasion from the flow of ore, as well as impact from both secondary blasting and from the production LHDs. In order to withstand these harsh conditions and to ensure a low maintenance environment, a conservative approach to ground support was taken. The experiences gained during construction are discussed and whether the design expectations have been achieved. By installing a high level of ground support during excavation of the openings subject to mining stresses, a low maintenance environment has been constructed. Operating costs are therefore minimised and Northparkes E26 Mine continues to produce at the lowest cost per tonne of all Australian underground mines.

Jan 1, 1999

By S J. Schafrik, Z Agioutantis, E C. Jong, K Luxbacher

Real-time monitoring of mine operating parameters is available at most mines. However, access to these data for an individual operation is typically underutilised by mine managers and technical personnel. Such monitoring systems are typically designed to provide data streams and alarms to a responsible person, but they are not utilised to extract underlying trends or correlate different data groups. Furthermore, multiple monitoring systems are usually implemented at a given site without interconnection between vendors’ systems or connection to any central management, and mine personnel are only exposed to a minimal subset of such data. Thus, it is not easy to analyse and correlate individual data streams and generate information to enhance day-to-day operational decision-making and improve safety and efficiency.This paper addresses the primary challenges associated with centralising data management and effecting greater utilisation of the vast amount of collected data, while at the same time reducing the time and effort required to manage such large data sets. Furthermore, it presents the conceptual design of a database application that can organise, present and analyse data collected by multiple sensors in different environments. The database is designed to operate in a passive manner so that active mine data management systems are not impacted. An example is given where this database is used for managing atmospheric data collected at an underground coalmine operation in the US. These techniques have a universal application and can be incorporated in a wide range of mining and construction projects.CITATION:Agioutantis, Z, Schafrik, S J, Jong, E C, Luxbacher, K and Karmis, M, 2015. A platform for managing and analysing atmospheric data in underground coalmines, in Proceedings Third International Future Mining Conference, pp 3–10 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By B K. Da, S A. Balaji, G P. Roy, T K. Dutta

The raw material handling complex at the Durgapur steel plant provides iron ore, crushed coke and flux to two sinter plants. Either some facilities were not envisaged or not properly designed before the project stage which caused problems during operation of the plant. The absence of an in situ roll turning facility, used to increase maintenance activities for disassembly, transportation of rolls to central machine shop and assembly of rolls, led to decreased crusher availability and increased activities for the maintenance crew. The provision of a smaller vibro feeder/screen in place of a suitable sized screen caused jamming of the screen deck, adversely affecting screening efficiency and the crushing index of crushed coke. Some design modifications and developmental work was undertaken, such as the development and installation of an in situ roll turning facility in the existing limited space, achieving low feed (0.1 - 0.2 mm/rev), lower cutting speed of 30 - 40 m/minute for 350 BHN hard roll, which was also a difficult engineering challenge to bring within the tolerable limit of vibration. This was successfully achieved. Modifications to the screen deck, introduction of differential speed crushing and modification to the vibro screen and vibro feeder for uniform distribution of feed have been incorporated. These innovative design modifications to the in situ roll turning have led to a drastic decrease in maintenance activities and an improvement in the crushing index. Modifications to the screen have resulted in the elimination of jamming and improved screening. Modifications to the vibro screen before the primary crushers and to the vibro feeder before the secondary crushers have prevented excessive wear in the central portion of rolls, ultimately leading to increased roll life. Incorporation of differential speed crushing has resulted in an increased crushing index and decreased generation of micro fines. All the above modifications have led to distinct improvements in equipment availability, increased roll life and a decrease in maintenance activities and improvement in crushed coke granulametry, ultimately resulting in improved productivity and quality of iron ore agglomeration at the sinter plant. The innovative design modifications mentioned above are discussed in detail in this paper.

Jan 1, 2005

By F C. D Michelin

Blast fumes are a significant health risk to underground workers, containing several dangerous gases such as carbon monoxide (CO), nitrogen oxides (NOx) and ammonia. To ensure safe working conditions, workers are not normally allowed to re-enter a mine until the gases are cleared. To predict if gases can be cleared efficiently, simulations can be performed to estimate the gas levels following a blast. For accurate modelling, a calibrated airflow simulation is required in addition to blast-specific parameters such as the yield rate (representing the amount of gas released per kg of explosive) and the dispersion factor (representing how quickly the gases can enter the air stream from the explosive site). Those parameters are not easily determined, as they will vary from blast to blast. Many post-blast gas recordings on mine sites were studied and the correct parameters were determined to ensure an accurate gas simulation. The variability of the results was then analysed and correlation to known parameters is suggested. Finally, recommendations on how to determine the correct parameter are presented.

Oct 12, 2022

By Q Shu, T Deng, B Yan, B Song, D Wang

In view of the lack of phase equilibria data of vanadium-bearing oxide system and the desirability of them for design or optimisation of vanadium extraction process, the phase equilibria relationships of V2O3-FeO-SiO2-CaO(15 mass per cent) system were determined experimentally and then an isothermal section phase diagram of this system was constructed. Totally, 81 samples of different composition were equilibrated at 1623 K for 48 hours in iron crucible under Ar atmosphere. The equilibrated samples were quenched quickly in cold water, and then the phase constituents of all the samples were identified by X-ray diffraction (XRD) combined with electron probe microanalysis (EPMA) measurements.

Aug 21, 2024

By P Craig, A Crosky, H Ramandi, S Saydam, H Chen

Frequency of reports on premature failure of rock bolts and cable bolts have increased in past two decades. Such a failure threatens both the safety of underground mine workers and the economic viability of the operations. Herein, we report on analysis of rock bolts and cable bolts failed recently in three underground mines in Australia. Magnetic particle inspection (MPI) and scanning electron microscope (SEM) techniques were used to study the failed bolts. MPI showed a number of subcritical cracks on the surface of the bolts. The majority of the cracks in both cable bolts and rock bolts were initiated from the base of ribs (indentation) where the stress concentration was high. SEM examinations showed tearing topography surface (TTS) in all failed rock bolts and cable bolts. These indicated that the failure occurred through hydrogen assisted stress corrosion cracking (HISCC). The results of this study enhanced the understanding about the failure of rock bolts and cable bolts in underground mines. CITATION:Chen, H, Ramandi, H, Craig, P, Crosky, A and Saydam, S, 2018. Analysis of premature failure of rock bolts and cable bolts failed in underground coal mines, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 407–413 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By A Dennis, T Hunter, R Coleman

For metallurgical plant design, it is necessary to progress through successive phases of test work, piloting and process development before involving all the other engineering disciplines and “freezing” the process design criteria and flow sheet. This process usually relies upon the experience, skills and personal preferences of various technology providers, study and engineering entities, test work and metallurgical laboratories and, most importantly, the owner’s team and its operators. Current industry trends include lower grades, more complex orebodies, geometallurgy in defining orebody variation and design envelopes, more common “hybrid” plant processes and the market demands for more reliable, timely and predictable early plant performance.This paper will discuss interaction of these trends and provide guidelines for the level of detail and technical complexity required for a number of different “typical” examples. The paper will pay particular attention to the study definition level translated into the required detail and certainty needed by the overall process “owner” and original equipment manufacturer (OEM) equipment suppliers to ensure the best real plant performance. Some recent case studies will be discussed. In many projects, at a late stage of project definition, it has become common practice to undertake a “value engineering” phase. Although it could be argued that this should be undertaken earlier, it is largely driven by an overall need to reduce capex and “optimise” the perceived “fat” built into the project during the detailed design process. This value engineering can be very counterproductive to project timing and operational performance and warrants discussion.The paper is intended to promote discussion on a topic of wide interest. The authors’ diverse backgrounds and experiences are integral to the views in this paper.CITATION:Dennis, A, Coleman, R and Hunter, T, 2017. Critical process design considerations from test work to operations, in Proceedings MetPlant 2017, pp 12–30 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By G J. I dos Santos

The risk assessment of mining projects is directly related to the possible failure in estimating, and as estimates are made from sampling results, this activity should be done in a judicious and planned manner, to avoid surprises at the start of project operation. Pierre Gy’s (1995) sampling theory addresses the issue of sample representativeness and indicates that only the certainty that the sampling procedure was performed with quality may result in samples being recognised as representative. To validate the representativeness of samples from sampling boreholes selected for studies of mineral processing, the team of geology resource assessment of VALE has proposed a methodology based on the use of statistical analysis tools, which in addition to considering the spatial distribution of these samples in deposit, considers whether they are representative of the populations studied, allowing the geologist to make a quick analysis of sample representativeness.

Jul 11, 2011

By T P. Medhurst

In many cases mine design is the most important driver of the profitability of a mining project, however to reach an æoptimumÆ mine plan many compromises have to be made. Some of the fundamental profit (and loss) drivers relate to stoping methods and stope design parameters. Inevitably trade-offs have to be made between the stability of underground openings, ground support costs and production efficiency. This paper looks at the role of geomechanics in the mine planning and design process. The concepts of æcontrollable lossesÆ and æuncontrollable lossesÆ are developed as a means of partitioning ground control costs. A stope design example is given which provides a method of examining mining costs, and includes a decision making element in order to quantify geotechnical impacts and select stope dimensions. The method also provides a general framework as a means of balancing ground control costs against maximising returns from an underground mining project.

Jan 1, 2000

By A Roseman, T Gruber

Traditional methods for installing gaskets for segmented bored tunnels have relied upon different bonding procedures with adhesives that carry a series of disadvantages to segment producers. Fixation of the gaskets into the concrete segment as part of the casting procedure has been developed over the last 20 years and has emerged as an economical solution to produce high-quality tunnel segments for various technical tunnel applications. This paper investigates the advantages of using anchored gaskets, the different tunnel systems that employ anchor gaskets and reviews the first anchor gasket project; the Lee Tunnel and analyses how segment production efficiencies are gained.CITATION:Gruber, T and Roseman, A, 2014. Use of anchored gaskets in segmented bored tunnels, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 253–256 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By A B. Jahed, Ö Aydan, T Ito

In this study, the authors compiled some case history data and present some typical examples of rock slope stability issues in Afghanistan with a special emphasis on Kandahar region and categorise rock slope failures according to the principles of modern rock slope engineering. The slopes considered involve rock-cut, natural rock slopes mainly. The effect of structural geology and discontinuous nature of rock mass on both slope-cuts and natural rock slopes is taken into account and some preliminary assessments on the stable and unstable rock slopes are presented. Furthermore, the seismic effect on their stability is also considered. It is also pointed out that similar issues could be observed in open pit mines, which may be exploited in years to come.

Nov 29, 2022

By Tamura S, Maekawa M, Nagai C, Deguchi M

Heavy fuel oil has been injected into blast furnaces in order to reduce the coke rate, to improve productivity and to control the furnace heat condition. However, in the first oil crisis at the end of 1973, it became necessary to develop an injection technique of new fuels into blast furnaces to reduce oil consumption. In Kobe Steel, Ltd., it was thought that the injection of a coal-oil mixture (COM) into blast furnaces could be developed in a shorter time than pulverised coal injection. The development of this technique was under- taken in 1974, and COM was injected through two tuyeres of the No.3 blast furnace at the Kobe works in 1977 and 1978. In addition, in order to study the combust- ibility of COM and the phenomena in the tuyere zone, the development of a gas sampling method was under- taken in 1975. In this paper, the results of the injection tests and gas sampling tests are reported.

Jan 1, 1981

By A D. Wulfse, C M. D Barton

Underground fractured aquifers in the Ernest Henry deposit are to a large extent controlled by deposit scale brittle structures. The underground mine has been subdivided into nine water zones based on hydrogeological characteristics, including conductivity and connectivity, within the mining areas bound by these structures. The nine water zones and the hydrological characteristics of the associated structures are utilised for risk assessing mine development and for targeting diamond drilling dewatering activities. Wireline and conventional underground diamond drilling techniques have been used throughout the network of underground aquifers with the aim of dewatering areas within the mining footprint. These dewatering drilling campaigns have historically been highly successful at lowering aquifer water levels throughout the underground workings. As part of recent mine expansion activities, diamond drilling has intersected high pressure (>507 psi), high temperature (>50°C) and high flow water (>3 L/sec) in as yet unconstrained underground aquifers. Groundwater is typically conducted through rubble and clay rich faults, further hampering progression of drilling. Drilling through fractured aquifers at depth presents both mine planning as well as safety challenges. Recent drill holes have been delayed or abandoned when aquifers hosting this high pressure, high flow water have been intersected, risking mine planning deadlines. Recent technological innovation developed to control groundwater outflows from the diamond drill hole whilst drilling has been trialled at the Ernest Henry Mine. This case study focuses on the utilisation of alternative drill methodologies to allow the current drilling campaign to continue without delay, whilst also improving safety conditions encountered on the drill site.

Mar 22, 2022

By R McDonough

DTL2 contract C916 was awarded in March 2009 for S$340 M. This contract includes two mass rapid transit (MRT) 1100?m long bored tunnels using two slurry tunnel boring machines (TBMs), with an internal diameter of 5.8?m, two cross passages and 135?m of cut-and-cover tunnels The contract also includes the design and construction of a new underground station including station entrances, subway links, architectural finishes and external landscaping. The station, located at Upper Bukit Timah Road near Jalan Jurong Kechil will also double as a civil defence shelter.The works included significant traffic management in a dense urban area in order to create the working areas whilst keeping the requisite number of traffic lanes. This involved numerous utility diversions and included the removal of a 33-year-old pedestrian overhead bridge (POB) over busy Bukit Timah Road. The station and tunnelling works were completed on time, including a ‘dock and dismantle’ TBM retrieval and subsequent breakthrough of the separating wall.This paper will detail the methods and solutions used to construct the tunnels and stations, with a focus on the requirements for construction of the station to be a civil defence shelter if required. This involved solutions to tying reinforcement and placing concrete to high standards in a restricted space, as well as the incorporation of heavy blast doors and other associated protective measures. The efforts of the management team resulted in the project being awarded first prize in the 2011 Land Transport Authority’s Annual Safety Award Convention and being named winner of the Safety and Health Award Recognition for Projects (SHARP) award at the 2011 Workplace Safety and Health (WSH) Awards. As well, McConnell Dowell won a Green and Gracious Builder Award (Excellent Category) from the Building and Construction Authority (BCA).CITATION:McDonough, R, 2014. Design and construction contract C916 Beauty World Station and Tunnels, Singapore, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 411–418 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Central to any business is its Asset Management Plan which encapsulates the business context and key organisational objectives such as profitability, safety and environmental standards. Life Cycle Planning (LCP) is a key component of an overall Asset Management Plan. A comprehensive approach to Life Cycle Planning forecasts the financial expenditure required to support the performance of the asset over the business life. It incorporates capital, maintenance and operational expenditure along with an estimation of economic life. Within its body the LCP provides the detail of the maintenance plan and method of its execution. Once optimised the LCP becomes the overarching plan executed through the application of several elements of the Asset Management Plan to ensure the return on investment from the assets is optimal. Each of the elements of the LCP is bound by a set of loops that provide information based on the analysis of outcomes. These loops drive the continuous improvement of performance and cost over the life of the asset. In this way we ensure that the LCP is a dynamic plan responsive to the changing business environment. The paper being presented today will describe the process undertaken and the outcomes derived when this approach was applied to a $600 M+ coal handling and preparation plant in QueenslandÆs Bowen Basin. It will also delve into the difficulties encountered from both technical and cultural aspects; the latter proving to be the most difficult to manage. It will describe the hurdles and barriers that hampered progress including the human influences and the natural desire to revert to what has been done in the past when things became a bit difficult. In the end the results are there to show that the upfront expenditure and investment in time was time and money well spent and the outcome has the operation well placed to manage the assets in a manner designed to deliver the optimal business outcome.

Jan 1, 2007

By J Lööw, M Nygren, E Segerstedt, L Abrahamsson

The purpose of the paper is to discuss socially sustainable development in the mining industry and the communities surrounding the mines. The discussions are based on results from a prestudy and literature review on mining and sustainable development conducted during 2013–2014 at Luleå University of Technology in Sweden. ‘A social licence to mine’ is important for the mining industry, but the social dimension is a relatively underdeveloped dimension when it comes to sustainable development in general and the mining industry in particular, one reason probably being the lack of effective methods for capturing social impacts. The mining industry and the surrounding communities face many challenges that provide both possibilities and obstacles to socially sustainable development; eg aspects such as gender, work conditions and cultural aspects. For example, a strong mining workplace culture and community identity can create strong cohesion but also lead to excluding certain groups, rejecting new ideas and reinforcing obsolete values. Other challenges include recruitment, as well as health and safety in relation to an increased use of fly-in-fly-out, contractors and automation of mining. Some challenges relate to the effects of fluctuations in the mining market. There is a lack of research that links attitudes, policies and activities within companies to their impact on the wider community, and vice versa. Future research should also include the development of methods and indicators for social sustainability relevant for mining – in other words: how do mining companies get ‘a social licence to mine’?CITATION:Abrahamsson, L, Lööw, J, Nygren, M and Segerstedt, E, 2015. How to get a social licence to mine, in Proceedings Third International Future Mining Conference, pp 125–136 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By T J. V Duffy, L H. D Siahaan, P G. Albert

G-ResourcesÆ Martabe Mine in North Sumatra, Indonesia, is a US$700 M world-class and world-scale operation in a country which, with a few notable smaller scale exceptions, has had no significant hard rock mining development in more than ten years.The mine was commissioned in the middle part of 2012 and poured first gold on 24 July. At full production Martabe will produce 250 000 oz/a of gold and 2 - 3 Moz/a of silver at cash costs in the lowest quartile. The mine location is on the west coast of North Sumatra, which experiences annual rainfall of 4 m with no notable dry season, adjacent to seismically active fault zones, and relatively close to a rural community of 31 000 people with no significant industrial experience.The management team has successfully forged strong links with the various government departments and levels in Jakarta, North Sumatra Province and the local Regencies; developed long-term relationships with the various community groups within the local district of Batangtoru to build a sustainable social licence; has dealt with the physical and environmental challenges presented by the project location, and has successfully raised more than US$900 M over a period of three years for the original acquisition then the development of the project.Whilst in its infancy of operation, the mine is set up to deliver a long-term sustainable future for the company, the shareholders, and the people of Batangtoru and all stakeholders generally. The quality of the project execution and commitment by the company will ensure that maximum value can be delivered from Martabe, not just for the current mine life but from the significant exploration potential that exists on the large tenement area that the company has access to for 30 plus years.This paper will deal with the physical challenges associated with the design, the Indonesian government regulatory requirements for mine development, the social aspects of building a world-class project in a developing area, the in-country commitment necessary for any project development anywhere in the world and the successful funding arrangements for the mine development.CITATION:Albert, P G, Siahaan, L H D and Duffy, T J V, 2012. Building AsiaÆs latest hard rock mine, in Proceedings International Mine Management 2012, pp 189-204 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By A Dunne, R Kruger, H Coleman, P G. Laurens

External and internal challenges in mining are increasing the difficulty and complexity of operating mines. The external mining environment has a big impact on mining operations and is driving the focus on safety, sustainable mining, green issues, profitability and productivity. There is a very high emphasis on ‘reducing cost to improve’, lower mining and beneficiation costs by eliminating waste/inefficiencies (reduce people, use less consumables, multiskilling, etc). The internal mining environment is getting tougher to operate in, with the deposits being more difficult to mine, more difficult to manage due to external pressure along with issues associated with maintaining quality, etc.Technological and environmental developments too numerous to mention, mean that cost control models, reduction in human resource numbers, as well as other drastic measures to curtail expenditure and increase profitability have become part of everyday business. The capability to manage the mining environment in a systemic manner has been lacking and this increases the pressure for performance on those individuals operating and managing mines.Working smarter has become crucial to ensure that businesses optimise the use of their resources, become more safety conscious, more productive and remain cost-effective, while recognising the importance of sustainable mining now and in the future. The logic of determining and managing to the capability of the mining value chain will be examined and the underlying assumptions or beliefs guiding behaviour and decision-making will be highlighted.In order to identify the obstacles in the mining value chain that hinder achievement of its full potential, the following questions have to be asked:What are the factors that influence the performance of a mining value chain?What is the design capacity of the mine?How can the inherent flow and value capacity of a mine be determined?What types of solutions will allow a mine to operate at its inherent flow and value capacity?This article will discuss the way we plan, measure, assess and manage the mine value chain, by addressing the following factors:balanced capacity versus flow and value capacity designthe use of averagingoptimising individual components in a value chain versus optimising the whole value chain.Optimising flow and value through the mining value chain is one of the three pillars of Mineral Resource Throughput Management (MR™). MR™ is an entrenched and academically supported philosophy that has been successfully applied in the past decade in various mines throughout the world by EXXPLEO, a mining and beneficiation consulting company. EXXPLEO has partnered with HCL (a global IT company) to embed the MR™ philosophy, methodology and toolsets into a formal software product called Synchronised Digital Mining (SDM). The SDM system will provide mining companies with a sustainable platform to effectively apply the MR™ principles and toolsets effectively across all operations targeting increased productivity, efficiency and profitability without having to train operations and management staff into expert MR™ practitioners to successfully achieve the desired results.CITATION:Dunne, A, Laurens, P G, Kruger, R and Coleman, H, 2015. Optimising flow in the mining value chain, in Proceedings Iron Ore 2015, pp 437–442 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By G Love, S Maher

In Victoria’s onshore Gippsland Basin, geology is driving brown coal developments, and geologists are key decision-makers. Prompted by volatile energy prices and the likelihood of a carbon constrained future, significant work has been carried out on the next generation of technologies to be applied to this giant resource. These include new-generation gasification technologies, coal conversion processes yielding products as diverse as diesel and fertiliser, drying technologies producing thermal and metallurgical coals and in situ conversion processes. However, coals aren’t coals, and brown coal available for new projects will have different quality parameters and mining economics from that currently mined.New projects are likely to be developed on coals with moisture contents averaging 60 per cent and corresponding low energy values. Whilst ash values will be low, averaging just 5 per cent (dry basis), this will at times approach 10 per cent, which is a level that would challenge the installed-generation technologies. Sulfur values will average 0.4 per cent (dry basis), but at times exceed 0.6 per cent, requiring technologies that address the potential for sulfur dioxide emissions. Whilst localised high levels of the fluxes iron (>1 per cent dry basis) and sodium (>0.3 per cent dry basis) would increase fouling of installed technologies, they may be suitable for selected next-generation technologies.Project viability for this next generation of technologies will be strongly influenced by mining cost, and geologists are playing a role in identifying higher-value coal. At its simplest, this is being achieved for open cut mines through regional, vertical strip ratio assessments, which are considered a first-order proxy for mining cost. Follow up assessments are incorporating mining and processing cost, coal quality penalties and product revenues. At a regional scale, it is informing the likely location and relative timing of future mine developments, as well as thinking around rehabilitation strategies, infrastructure and land-use planning.For deeper coal, factors like macro permeability, the ability to isolate seams from aquifers, groundwater chemistry, pressure temperature conditions, connection with groundwater recharge and in situ biota are being used as vectors to in situ coal conversion opportunities.Matching coal to the next generation of technologies has benefited from regional-scale geological studies of coal quality and mining economics, and has benefited from early engagement between geologists, technology developers and project proponents.CITATION:Maher, S and Love, G, 2014. Matching brown coal to the next generation of Latrobe Valley projects, in Proceedings Ninth International Mining Geology Conference 2014 , pp 77–84 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By M Sandy, P Bamford

The Challenger Gold deposit was discovered in 1995 by Dominion Mining Ltd in a remote western area of the Gawler Craton in South Australia. Mine development commenced in 2002 with initial production from an open pit supplemented by ore from a very small adjacent auxiliary pit. Development of the underground mine commenced in 2004. The orebody plunge of just less than 30 degrees requires careful attention to mine design. Production from the M1 orebody, with less than 800 ounces per vertical metre (ovm) and very limited æsurgeÆ capacity, requires careful scheduling and implementation to ensure continuity of ore feed for milling. Initial production results from underground stopes included more dilution than anticipated. The narrow, high-grade zones proved to have much more complex geometry than early interpretations had indicated. Greatly improved understanding of the mineralisation controls resulted in important changes being made to the underground mine design and method. Coupled with careful control of development and drilling and blasting practices, this resulted in an immediate reduction in dilution and high recoveries of the resource. The benefits of these changes flowed through in the 2005/06 financial year, resulting in a 150 per cent increase in gold production to 108 080 oz and a sharp reduction in cash operating costs to A$280/oz. This was followed in 2006/07 with production of 108 91 oz of gold at an operating cost of $309/oz and in 2007/08 with 109 326 oz of gold at $367/oz. Production to June 2008 has been mainly from the M1 orebody, with the lowest stoping to date on the 580 m Level (615 m below surface) above development mining on the 520 Level. The rate of vertical advance of mining this orebody has averaged 150 vertical metres per year. The increased current combined JORC compliant resource and reserve position of over one million ounces, now includes the M2 and M3 orebodies with a current total average gold inventory up to 1400 - 1500 ovm. Exploration has intersected other shoots and all shoots are open at depth. The adjacent M2 and M3 orebodies are being developed for stoping. The narrow width of these zones from 1 m up to 4 m will require continued focus on ore zone definition, accurate development and careful drill and blast practice. In addition, to minimise cost increases in the current period of rapidly escalating labour, equipment, consumables and energy costs, high productivities will need to be maintained to allow the established rapid mining advance to continue at low unit costs.

Jan 1, 2008