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This paper examines some of the fundamental economics of mining - in particular, for optimisation studies, for production rate determination and for reserve estimates.It includes introductory discussion on the principles as to how economics drives mining investment decision-making, applicable to the optimising of pit shapes and production, or truck fleets, or any other part of the mine.The main part of this paper looks at the decision to start-up a mine and why the 'optimum' production rate to start-up a mine is not the point of lowest cost according to traditional discounted cash flow (DCF) analysis. The optimum production rate is usually substantially less than this rate. The paper recognises the difference between typical mining investments and investments in other industries that do not have the unique characteristics of mining and the problem of uncertainty resolution. It examines the marginal revenue effects, the marginal cost of capital and the value of a real option to expand pending uncertainty resolution as determinants of optimum initial production rates.The final part of this paper looks at applying these principles to renewable and non-renewable resources. It examines mine life and reserve estimates from an economic perspective.

Dec 6, 2010

By D A-F Batchelor

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation.South-East Asia represents the world’s most productive tin province, mainly from placers. Kalimantan has been a major diamond producer, while in the 1980s a placer gold rush occurred in Indonesia and Malaysia. Reviewing extensive geological and mining data highlights phenomenal palaeo-environmental changes in the Sundaland region, interpreted to be responsible for generating ‘giant’ placers. Correlation of the Late Cainozoic stratigraphy has been facilitated from mine exposures and drill holes distributed throughout Peninsular Malaysia, the Indonesian Tin islands and Kalimantan, including contiguous marine areas with extensive shallow seismic profiling data. Knowing the association of rich placers with palaeo-environmental episodes and stratigraphical units has been helpful to facilitate their discovery. All three placer commodities responded similarly to region-wide landscape evolution following Mio-Pliocene high sea levels. Commencing with major regression, important stages comprised: a long period of landscape stability with deep weathering during the maximum Sundaland extent gradually rising sea levels/precipitation initiated slumping of mineralised regolith to form fans, later reworked by braided streams with aggradation (Old Alluvium); during episodic pluvial periods downcutting upgraded placers significant change occurred around Middle Pleistocene time with peneplanation and pedogenesis from Late Pleistocene time ‘modern’ fluviatile deposition (Young Alluvium) filled incised V-shaped valleys.Placer seams show systematic variation in stratigraphic position, in particular cassiterite especially occurs in the Old Alluvium (equivalent Upper Dahor Formation in Kalimantan). Gold is commonly richer in gravelly younger deposits, partly because of secondary precipitation within permeable alluvium. Reworked diamonds are predominantly concentrated especially in younger fluviatile alluvium.CITATION:Batchelor, D A-F, 2015. Conceptual exploration for tin, gold and diamond placer deposits in ‘Sundaland’ (Indonesia and Malaysia) by understanding the late Cainozoic stratigraphic context, in Proceedings PACRIM 2015 Congress, pp 499–506 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

By C Verdel, M Lee, A Oorloff, K Welsh

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Thomson Orogen is a large but poorly understood element of Queensland geology. Extensive cover conceals the Thomson Orogen at depth, thus limiting studies to a small number of surface exposures. Previous studies of the northern Thomson Orogen have been restricted to the largest of these exposures in the Anakie Inlier and Charters Towers Province. Less extensive exposures, including Mt McLaren in east-central Queensland, are largely overlooked and poorly documented. Fieldwork suggests that Mt McLaren is a west-tilted fault block of Thomson Orogen metasediments that are at least 2200 m thick. The substantial thickness of these sediments (which we have named the Mt McLaren Formation) and the consistent shallow marine facies throughout the block suggest deposition in an actively subsiding basin. Initial dating of detrital zircons places deposition of the Mt McLaren Formation in the Late Cambrian to Early Ordovician, allowing correlations with formations of similar composition and age in the nearby Anakie Inlier and Charters Towers Province. Both of these areas have a long history of mining and exploration for gold and base metals, suggesting that correlation of basement sequences across these areas could be beneficial for exploration models of the Thomson Orogen as well as for tectonic models of eastern Australia.CITATION:Lee, M, Verdel, C, Welsh, K and Oorloff, A, 2015. Stratigraphy of the Thomson Orogen – new insights from Mount McLaren, north-east Australia , in Proceedings PACRIM 2015 Congress, pp 551–556 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

Differentiation of a basaltic (?) magma occurred in an active volcanic area during the late Miocene and Pliocene, and a change in the general mode of extrusion from fissure flow for the basalt to explosion for the andesite reflects an accompanying increasing magmatic viscosity. A caldera formed after the flow phase was completed and was filled with coarse agglomerate, much of which has a fused appearance. After an erosion interval its shape was modified and it became gradually deeper as repeated explosions from growing andesitic volcanoes caused large quantities of pyroclastic material to be deposited. At the close of this phase the floor abruptly collapsed when a, large block of the underlying crust was engulfed. The incompetent pyroclastics filling the caldera steepened in dip and the ensuing fractures were filled by the rising magma as dykes and sills and a chonolith formed below the caldera at a shallow depth. The ensuing activity reveals a further stage in differentiation and biotite is an important new ferromagnesian to be observed in the new rocks.Fracturing of the surrounding basalts was most intense in the rocks forming the periphery of the caldera where steeply and flatly dipping faults resulted from increasing horizontal pressure directed towards the caldera.Further differentiation resulted in the increased crystallization of orthoclase felspar, as evidenced by the numerous intrusives of trachy andesitic composition. Magmatic freezing caused mineralizers to accumulate at the top of the chonolith. These eventually escaped and auriferous pyrites, tellurides, quartz, and calcite were deposited in the surrounding rocks.The flatly dipping fractures are the most important and can be expected at various depths in a zone about 4,000 ft wide surrounding the caldera. Latest movement along these was controlled by magmatic consolidation rather than the shape of the caldera. Some flat faults were able to remain open during mineralization and acted as a feeder for the shallower fractures, thus limiting the depths to which the steeper dipping fractures were mineralized with the possible exception of one particular Nw.-striking lode (the Crown-Crescent).INTRODUCTIONThe gold deposits of the Tavua district were discovered in 1932 and from 1935 to June, 1961, 1,985,041 fine ounces of gold were produced from 4,202,504 tons of ore. Of the original three producers, only the Emperor remains active in the...

Jan 1, 1962

By J Widjaja, E Hermawan, M Muharam, L Damanik

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The island of Java lies within the Sunda-Banda magmatic arc, which is characterised by multiple phases of volcanic activity and extensive compressional deformation. Along this zone, significant gold and copper mineralisation occurs, including some of the world’s largest deposits. In West Java, epithermal gold mineralisation is typically located in a series of extensional and strike-slip faults that cut Miocene to Pliocene volcanic rocks. These are all low-sulfidation, epithermal, vein-stockwork-style deposits developed in Miocene to Pliocene calc-alkaline volcanic rocks, which have been intruded by shallow-level plutons.This paper discusses an example of epithermal mineralisation at Mt Subang, West Java. Gold mineralisation was originally identified from stream sediment, panned concentrate and rock geochemistry sampling in the early 1990s. Geophysical surveys (magnetics and induced polarisation resistivity/chargeability), trenching, pitting and diamond hole drilling has subsequently revealed silicified-quartz vein epithermal gold mineralisation hosted within fault structures. It is clear that these structures acted as hydrothermal fluid pathways leading to the development of mineralised offshoots along north–south extensional and en-echelon arrays of north-east–south-west and transtensional faults. A number of vertical offshoots also occur in flexures and fault jogs. Post-mineral faulting has subsequently dissected and offset a number of the offshoots. Therefore, a detailed knowledge of structure and fault kinematics and displacement magnitudes is required in order to understand the geometry and continuity of mineralisation across major structures and maximise the resource potential. A range of exploration targets were modelled, indicating a minimum and maximum of 0.2 and 1.8 Moz of gold respectively.CITATION:Cunningham, M J M, Muharam, M, Damanik, L, Hermawan, E and Widjaja, J, 2015. Structural controls on the localisation of low-sulfidation epithermal mineralisation in West Java, Indonesia , in Proceedings PACRIM 2015 Congress, pp 227–234 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

The areas of concern lay in the processing of, and the subsequent hearing into, Waihi Gold's resource consent applications to extend Martha Mine. The proposed amendments to the Resource Management Act 1991 might see the introduction of contestability in the processing of applications - which would have assisted Waihi Gold; and the use of commissioners to hear the applications, with a right of appeal to the Environment Court on points of law only. It is also proposed to have major applications heard directly by the Environment Court. If Waihi Gold's applications had been heard at first instance by the Court, the delays in time and associated costs would have been reduced. However a hearing by commissioners only would not have been satisfactory, there being no right of appeal against the conditions of consent, which if implemented as granted by the Councils would have had a significant impact on the costs associated with the extended project.

Jan 1, 1998

Sphalerites from Devonian cassiterite-sulphide deposits and Pb-Zn-Ag fissure veins have similar ranges of Cd contents, but the average Cd and Fe contents could indicate a small initial difference in availability of Cd between the Zeehan-Renison Bell district and the Mt. Bischoff-Waratah district. Sphalerites from banded Pb-Zn deposits (Rosebery and Hercules) are characterized by low Cd content which is a world-wide feature of such deposits in exIrusive rocks, and may indicaIe a genetic relationship between ore deposition and vulcanism.

Jan 1, 1968

This paper reviews the development and operation of a small underground tin mine in NE Tasmania. Tin mineralisation was discovered in the Lottah area in the 1880s with early alluvial and eluvial workings leading to the development of large low grade open pit operations. Apart from short lived activities operations ceased in 1915. Intensive exploration in 1978 - 1981 outlined substantial tonnages of low grade tin mineralisation (0.2% Sn) of open pit material. An underground ore body was also located (800 000 tonnes 0.6 per cent Sn). Spectrum Resources Australia Pty Limited acquired a 98 per cent interest in the property in 1988. Mine and mill development began in early 1989 based on an underground mine utilising trackless mining using room and pillar with fill stoping. The milling circuit involves primary jaw crushing, Barmac secondary crushing to 1 mm, Mogensen and DSM screens with jigs and tables to make a wet concentrate. Final tin concentrates are produced by high tension and magnetic separation. Planned production rates are 500 t/day with a mine life of six to seven years.

Jan 1, 1990

By P C. Couper, P C. Keall, S J. Mathews, A Francis

An epithermal gold-silver deposit is presently being developed at the Golden Cross Mine in the Waitekauri Valley, 8 km northwest of Waihi, New Zealand. Highest grade mineralisation underground is mainly confined to an elongate zone of strongly banded quartz veining on the hangingwall. Footwall veining is irregular, flatter lying, and of lower grade. Hydrothermal breccias in the ore zone may have economic grades where clasts of vein quartz are present. Jigsaw breccias, shingle breccias, and layered breccias with sedimentary type structures such as layering, crossbedding, and graded bedding have been identified proximal to, and within, quartz veins. Mineralisation in the open pit occurs in and adjacent to stockwork quartz veining.   Three alteration zones are recognised: a central silicic zone enclosing Au-Ag bearing quartz veins, an argillic zone above the stockwork zone and in the footwall of the underground ore zone, and a propylitic zone which is gradational with argillic zone. Intense shearing is confined to the less competent argillic zone.   Precious metal mineralogy consists of electrum (65% Au; 35% Ag) and argentiferous tetrahedrite, polybasite, pyrargyrite, argentite, and native silver. Pyrite is the dominant sulphide mineral. Marcasite, arsenopyrite, and rare chalcopyrite and sphalerite also occur. Oxidation ranges from a few metres in the argillic western stockwork zone to 100 m in fractured rock in the footwall of the stockwork.   The open pit contains a proved and probable reserve of 2.1 million tonne grading 3.5 g/t Au and 17 g/t Ag. The underground mine will produce 2.7 million tonne grading 7.8g/t Au and 27g/t Ag.

Jan 1, 1991

Extraction of copper from a chalcopyrite concentrate by means of a cupric chloride leach is described. Initially the concentrate is mixed with sulphur in a 9: 1 ratio, and heated to 350-400°C. This converts the chalcopyrite into more readily soluble sulphides, while the iron rejected from the chalcopyrite is transformed to pyrite, which is insoluble in the leach solution employed. A two-stage countercurrent leach using a leach solution of 1 M cupric chloride, 3.5 M sodium chloride, and 1 M hydrochloric acid extracts 98 per cent of the copper, if conducted at 105°C. Iron extraction is relatively low, the mole ratio of iron to copper extracted being 0.17, compared to 1.0 for unreacted chalcopyrite. After dissolution, copper can be recovered by electrolysis, cupric chloride leach solution being regenerated at the anode.Electrolytic power requirement is low, being approximately 0.5 kWh per kg of copper. The sulphur and, most of the iron entering as feed are rejected from the process in the form of pyrite, which remains in the leach residue.

Jan 1, 1974

The object of this paper is to give a description of the new office and changehouse building and equipment at the Zinc Corporation Limited, the office section of which has now been in full use for approximately three years, and the changehouse section for approximately two years. As the expectations of the design have been fully realized, it is thought that this description will be of interest to members and possibly of some use to others faced with similar problems.GENERALIn the centralization of the surface plant around the new main shaft the combined office and changehouse building forms a prominent feature, being located between the shaft and the mill and facing the workshops on the northern side.The scheme for housing all employees in one building was proposed by the Manager, Mr. A. J. Keast, who was familiar with a similar successful structure built at the McIntyre Porcupine Mines Ltd. in Ontario, Canada.The principal features of this building were adopted as a basis for design, and the present layout evolved to suit the particular requirements of this mine.Some of the advantages of the design are:(a) Economy in first cost and space occupied when compared with plants having separate office and changehouse buildings.(b) Easier and more constant supervision of employees and of the plant by the senior staff members.(c) Close contact between officials of all departments.(d) Close covered connection between changehouse and shaft.(e) Avoidance of duplication of ,essential services such as electric power, water, heating plant, sewerage, etc.The Managing Director, Mr. W. S. Robinson, further instructed that the following requirements be adhered to in the new building:(a) Ample accommodation to be provided for office staff and other employees.(b) Special attention to be paid to lighting, both natural and artificial.(c) Working temperatures to be controlled to facilitate comfort and efficiency.(d) The buildings and equipment' to be of a permanent nature with furnishings and fittings of modern design.

Jan 1, 1941

By S L. Garwin

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. Since the Eocene, New Guinea tectonics have been driven largely by the south-westerly-directed collision of accreted arc terranes with the northern margin of the Australian Craton, and subsequent westerly-directed transport of these exotic terranes by left-lateral strike-slip fault systems. The subduction of the Solomon Sea plate beneath north-eastern New Guinea in the mid- to late-Miocene led to magmatism and related gold-copper porphyry and epithermal mineralisation in the Maramuni arc and the formation of the Frieda River, Nena, Wafi-Golpu and other deposits.The development of the world-class porphyry and epithermal deposits in the Medial New Guinea magmatic belt, including Grasberg, Ok Tedi and Porgera, is localised by dilational zones formed about the intersections of north-easterly-trending, reactivated basement faults and north-dipping reverse faults related to the southward progression of the Papuan fold belt during the Late Miocene to Pleistocene. These deposits probably formed during short mantle-derived magmatic episodes in zones of regional isostatic uplift, which are attributed to the delamination of the lithospheric mantle beneath New Guinea.CITATION:Garwin, S L, 2015. The tectonics, geology and gold-copper metallogeny of New Guinea, in Proceedings PACRIM 2015 Congress, pp 151–164 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

The Electricity Generating Authority of Thailand (EGAT) Mae Moh coal mine is an open-cut coal mine in Thailand that produces about 16 Mt of lignite annually to generate 2400 MW of electricity. The surface mine pit covers is 4 km by 7 km with mining depths ranging up to 260 m. A large pit slope is formed with the progression of the mining operation. However, massive slides in the pit slope occur often due to the existence weak planes such as faults and bedding, and the weak mechanical properties of the rocks. Hence, 200 m to 300 m boundaries of rock block including coal seams are left in front of faults in order to prevent slides and maintain the stability of the pit slope. As a result, there are significant coal reserves beneath the abandoned area along the pit slope. Moreover, the mined coal seams are very thick and their thickness range from 15 to 30 m.This paper discusses the application of multi-slicing highwall mining system with stowing to this very thick coal seam left around large pit slopes by means of numerical analysis.

Dec 6, 2010

IN previous discussions on the occurrence of gold in the Bendigo quartz reefs the opinion has been put forward that the gold shoots are primary concentrations in the quartz reefs during the period of vein-formation. The view has been based upon the constant features of the gold shoots in a large number of individual reefs, independent of their depth below the surface. These features include the mineral associations accompanying the gold, the appearance and association of the gold in the quartz, the similarity in all respects (excepting mineral content) between richly gold-bearing quartz and poor quartz, and the variations in mineral content in the reef apart from gold. The view has been supported by a relation of the gold shoots to faults, together with the dependence of the reefs on the existence of pre-mineral faulting. The secondary deposition of gold has only been observed in a few instances .associated with the younger monchiquite dykes, and is of no economic importance.

Jan 1, 1922

The Pilbara Block is a nucleus of Archaean rocks which lies in the North West Land Division of Western Australia, and it constitutes a mineral province that has been divided into two areas-the West Pilbara Goldfield and the Pilbara Goldfield.In the West Pilbara Goldfield two contemporaneous environments are represented by laterally equivalent volcanic and sedimentary successions which together comprise the Roebourne Group. The two successions are lithologically similar to the classical Warrawoona (volcanic) and Mosquito Creek (sedimentary) successions of the Pilbara Goldfield; but in the West Pilbara Goldfield there is no sign of the erosional break which separates the Warrawoona Succession from the Mosquito Creek succession. The Roebourne Group and the igneous rocks which have intruded it belong to the Archaean Pilbara System.Evidence of preconsolidation movement and igneous intrusion into unconsolidated sediment suggests that tectonism and igneous activity, localized along lines of fracture in an unidentified basement, beganbefore lithification was complete. Movement was primarily vertical, and persisted into the Lower Proterozoic.Vulcanicity and chemical sedimentation, accompanied by a diminution of detr:tal sedimentation, is thought to have caused a relative enrichment in the metal content of the middle part of the Roebourne Group; and the metal may have been remobilized during diagenesis and metamorphism, and localized in zones of dislocation formed both before and after consolidation of the sediments.INTRODUCTIONThe name "Pilbara" has been widely applied in the area under discussion, and to avoid confusion the various uses are summarized below.1. The town of Pilbara, now abandoned, was a centre of mining between 1888 and about 1914. It lies some 90 miles FJSK of Roebourne (Fig. 1).2. The original Pilbara Goldfield was modified several...

Jan 1, 1965

By Finlayson EJ

Epithermal gold is hosted by late Middle Miocene Okiduse Volcanics on Woodlark Island. Dating of associated alteration minerals indicate mineralisation to be broadly contemporaneous with volcanism (12.2 - 12.5 m.y.) and is probably related to subduction of the Solomon Sea plate along the Trobriand Trench. Mineralisation is polymetallic and structurally controlled. Pyrite, sphalerite, galena and minor chalcopyrite occur in steeply dipping fracture zones and/or hydrothermal breccia bodies associated with mixed clay-pyrite alteration envelopes. These envelopes occur within a terrane of regionally propylitised high-K, calc-alkaline andesites and related epizonal subvolcanics. Gangue minerals include quartz, calcite, dolomite and minor anhydrite. High level advanced argillic alteration and siliceous cap rocks are not present but may have been eroded off the top of the system. Fluid inclusion and stable isotope data suggest that the carbonates and paragenetically associated auriferous base metal sulphides probably deposited from an isotopically evolved (+8%. 180) reduced hydrothermal fluid sourced from underlying sedimentary rocks. The fluid was predominantly of low salinity (0-4 wt % NaCl equivalent) and had a temperature of about 270¦C at the time of boiling and mineral deposition.

Jan 1, 1987

The physical setting and background to mining operations on Misima Island and the overall plant lay-out are outlined. Developments and changes made to each section of the plant are described as they were encountered during commissioning and initial operation.

Jan 1, 1991

By Lyman G. J

Dense medium drum separator efficiency was analysed at two Western Australian iron ore concentrators. Efficiency data had hitherto been difficult to accumulate due to the high cost of analysing representative, and therefore large, coarse ore samples. To overcome this problem, recoverable density tracers, which are in effect artificial mineral and gangue, were manufactured in three different sizes (15 mm, 30 mm and 60 mm). Their use enabled partition curves to be studied within one hour of conducting a test: separation densities were generally lower than the feed medium density for all three sizes of density tracer. For a given set of operating conditions, the smaller tracers had lower separation densities and larger ecart probab/es than the large tracers. These phenomena are explained with the aid of a conceptual model of a drum separator, which assumes that the feed ore plunges to the bottom of the drum upon introduction. Particle rising velocities are, therefore, process determining.Medium rheology was altered by adjusting the proportion of solids in the pulp. This was accomplished by changing both the pulp density and ferrosilicon/magnetite ratio. Higher solids volume fractions invariably caused a decrease in separation densities and an increase in ecart probables, most markedly for the smaller tracers. A similar response was observed when feed tonnages were raised.An explanation for these phenomena is sought in the discussion which also suggests means of improving drum separator efficiency.

Jan 1, 1987

By D FitzGerald, S Jakica, R Paterson, J Silic

A new 2.5D airborne electromagnetic (AEM) algorithm has been developed by Intrepid Geophysics and Jovan Silic & Associates. The advantage of 2.5D (2D geology, 3D source) AEM inversion in 3D geological mapping applications and identification of conductive drilling targets, compared to the more commonly used conductivity-depth imaging (CDI) transforms or 1D inversions, are demonstrated using examples from banded iron formations (BIFs) and other geological settings. We show emerging AEM systems are capable of providing estimates of economic rock unit thicknesses, dips and fault definition at an accuracy that mitigates the need for pattern drilling.The 2.5D inversion application used in this work and described in Silic et al (2015) is a substantially changed version of ArjunAir (Wilson, Raiche and Sugeng, 2006), a product of CSIRO/AMIRA project P223F. The changes include a new forward model algorithm and a new inversion solver. The application enables the accurate simulation of 3D source excitation for full domain models inclusive of topography, non-conforming boundaries and very high resistivity contrasts. Solution is accurate for a geoelectrical cross-section, which is relatively constant along a strike length that exceeds the AEM system footprint.The major innovation includes a new inversion solver with adaptive regularisation, which allows the incorporation of a misfit to the reference model and the model smoothness function.Memory usage has been dramatically reduced and is estimated prior to execution. For speed the software has been parallelised using Intel message passing interface (MPI) and can be used on standard computing hardware or computing clusters. Data from survey lines with lengths exceeding 100 km can be inverted on high end laptop computers.We allow flexibility in the selection of components and in the estimation of noise.AEM inversion examples are shown for surveys from BIFs, base metals (volcanogenic massive sulfides) and geological mapping projects and the results are compared with known geology and drilling. We demonstrate the much improved mapping and target definition delivered by this inversion method when compared with the other more common transforms or inversion methods used on these projects.CITATION:Paterson, R, Silic, J, FitzGerald, D and Jakica, S, 2017. High accuracy .D airborne electromagnetic inversion method for banded iron formation and other geological settings, in Proceedings Iron Ore 2017, pp 319–330 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 24, 2017

By R Simcock

Why Rehabilitate? Legislative Requirement Land rehabilitation is a condition of resource consents for mining. Clause 17 (1) of the Resource Management Act 1991 (duty to avoid, remedy, or mitigate adverse effects) provides the legislative basis for local authorities to impose resource consent conditions requiring land to be rehabilitated to approved uses during and after mining.

Jan 1, 1997