Search Documents

By A. Cabañas

"In this paper, geostatistical techniques are applied to forecast the annual copper price in the short and medium terms (from one to five years ahead). These techniques allow the incorporation of monthly and multivariate information in the analysis and provide more accurate results than traditional approaches, especially as far as the one-year forecast is concerned.A second advantage of geostatistics stems from its ability to assess the uncertainty associated with the unknown future prices, thanks to estimation variances or confidence intervals, depending on the technique used. Such an assessment has a crucial importance in decision-making, from both macroeconomic and microeconomic points of view. IntroductionThe copper price traded in the London Metal Exchange is a relevant parameter for defining macroeconomic policies of producing countries like Chile. It is also a key factor for the mining companies, since fluctuations in the sell price affect the expected financial flows. Due to the amount of money involved in decision-making, it is necessary to have accurate forecasts of the future copper prices and to quantify the uncertainty associated with such prices.This paper focuses on the annual copper price estimation in the short and medium terms, i.e., from one to five years into the future. Henceforth, the word “estimation” will be used as a synonym of “forecast,” according to the geostatistical jargon (Matheron, 1989).Two main approaches, based either on statistics or econometrics, are currently used to forecast commodity prices, but both of them are not very accurate when applied to copper. First, the main methods are briefly reviewed, then the geostatistical formalism will be presented. So far, the latter approach hardly has been used to estimate commodity prices, although it may reconcile both statistics and econometrics via (1) the use of a stochastic approach and (2) the handling of ancillary variables related to the copper market. Another advantage of geostatistical techniques is the ability not only to forecast the copper price, but also to measure the uncertainty associated with it."

Jan 1, 2004

By Onur Kacar

A numerical approach has been implemented to assess the settlements of pile groups bearing in clay. A three-dimensional finite element program has been utilized to model a vertically loaded spread footing, a single pile and a pile group. The soil-pile interaction was modeled with elastoplastic soil and interface elements. The model has been calibrated using a full scale load test results of the spread footing. The load transfer between the pile cap and the piles was assessed and compared with the measured load transfer. The predicted settlements for the pile group were compared with the settlements measured in the load test. Two analytical methods were adopted to predict the pile group settlements and they were compared with the measured values. The group effect determined from the analysis and load tests was compared with the interaction factor approach. It was shown that three-dimensional finite element approach can be successfully utilized to assess the soil-structure interaction and hence the load transfer between the piles and pile cap. Also, it was shown that the interaction factors method and equivalent footing method work well in the working stress range, however they underpredict the settlements at larger loads. INTRODUCTION The settlement and stress distribution of pile groups have been traditionally estimated based on load test results of single piles and accounting for the group effect using various approaches. The most widely used approaches are group interaction factor method, equivalent footing method and equivalent pier method. These approximate solutions are used very commonly in practice as full-scale load tests on pile groups are very expensive and time consuming. These approximate solutions are also adopted in design guidelines such as AASHTO LRFD Bridge Design Guidelines (2014) and FHWA Design and Construction of Driven Pile Foundations (2016). In this paper, a full-scale foundation load tests performed by Nagai et al. (1961) and reported by Koizumi and Ito (1967) is modelled using a three-dimensional numerical method. The settlements and the stress distribution on foundations were then compared with the traditional equivalent footing method and interaction factor methods.

Jan 1, 2018

By B. L. Eggers

This study investigates the application of computed order tracking with subsequent rotation domain averaging and statistical analysis, to the drag gearbox of a dragline used in a mining environment. Computed order tracking is a fault detection method developed to deal with the varying speed conditions often found in industry and has been proven effective in laboratory conditions. Its application to real situations, however, requires some adjustment to deal with issues such as inadequate speed data and the fact that the drag gear rotates in two directions. This provides a unique opportunity to observe the performance of the order tracking method in a bi-directional rotating environment, allowing an investigation of the relationships between the results obtained from each operating direction. A monitoring station was set up aboard the dragline and data was captured twice daily for a period spanning approximately one year. The data captured consisted of accelerometer and proximity sensor data. The key on the shaft triggers the proximity sensors, allowing speed and direction to be measured. The measured speed is interpolated by using various speed interpolation techniques. Then the interpolated speed is used to complete the order tracking procedure that resamples the vibration data with reference to the speed. The results indicate that computed order tracking can be successfully employed in real environments. Furthermore it is shown that the rotation direction that opens the gear-tooth crack gives a better indication of incipient failure. It is therefore important not to disregard either direction when monitoring rotating machinery of this kind.

Jan 1, 2007

By M R. Stevens

The Kauri Block (Hauraki Hill) andMatawai Valley epithermal vein systems, near Coromandel township, are hosted by hydrothermally altered Miocene andesites and Mesozoic greywackes of the Coromandel VolcanicZone. The hydrological setting of both geothermal systems was probably that of an andesitic volcanic arc. Two types of veins are recognised: 1. Simple veins composed of fine comb quartz, and 2. Complex (breccia) veins composed of vein fragments of sulphide-bearing, chalcedonic silica cemented by saccharoidal and fine comb quartz.   Pyrite, arsenopyrite, marcasite, and gold form the ore minerals. Both deposits historically exploited hypogene and supergene bonanza gold.   At Hauraki Hill, breccia veins up to 7m wide contain abundant fragments of recrystallised colloform banded-crustiform textured quartz veins ('Golden Cross' style) and were probably major channels for ascending deep mineralising fluids. Alteration assemblages are zoned with the higher elevations of Hauraki Hill-Bunkers Hill characterised by strong kaolinite alteration whereas deeper levels are dominated by illitic clays.   At Matawai, complex veins and hydrothermal breccias pinch and swell, and inflect, within a total width of veining and alteration that exceeds 50 m. The greywacke host rocks are altered to an assemblage of illitesmectite, quartz, chlorite and pyrite although there are pockets of kaolinite.   The proposed genesis of veins and ores in both deposits invokes episodic rapid mixing (quenching) of hot mineralising reservoir fluids with cool acid condensate waters, whilst acidification and increased fO2 triggered gold deposition. These hydrothermal systems heated up during their later stages and at Matawai visible gold was deposited from a late mesothermal stage. The main conclusion is that the northwest CVZ has excellent potential for large gold deposits (= 30 tonnes contained gold).

Jan 1, 1993

By S Henderson

The Thames gold-silver deposits are part of the Hauraki goldfield, situated within the Miocene to Pliocene calc-alkaline Coromandel Volcanic Zone (CVZ). The Waitangi vein system is one of the mineralised ore shoots in the Thames district. The Thames gold deposits are characterised by shallow level epithermal vein mineralisation with phyllic to advanced argillic alteration assemblages and abundant sulphide minerals including pyrite, arsenopyrite, chalcopyrite, galena and sphalerite. Gold occurs as electrum in association with sulphide minerals. Microprobe analyses.of sphalerite grains from the Waitangi deposit mostly range from 0.8 to 1.5 mole % FeS, although one sample contains 9.5 mole % FeS. Arsenopyrite from Waitangi yields a range from 33.1 to 34.6 atomic As (%). There is no discernible correlation between the FeS content of sphalerite and gold grade in the Waitangi deposit suggesting that gold deposition is probably not controlled by changes in temperature and activity of sulphur aS2 that control the FeS content of sphalerite. The possible causes for gold deposition are thought to be boiling, mixing and changes in pH. Sulphur isotope analyses of mixed sphalerite-galena and sphalerite-galena-ehalcopyrite samples yield a narrow range of d34SCDT values (-1.0 to 0.9 ë;n=5), whereas late spongy pyrite gives unusually light sulphur isotope values (-16.7 to -27.9 ë; n=4). The sulphur isotopic values of base metal sulphides from Waitangi suggest that the sulphur was derived from a magmatic source. However, the source of light sulphur in the late pyrite grains is not known. Preliminary fluid inclusion+studies indicate homogenisation temperatures between 173¦ and 284¦C and salinities of 0.23.0 NaCI equiv. wt % (uncorrected for C02). Vein quartz at Waitangi yields d18OSMOW values from 6.8 to 12.7 ë (n=23). The calculated oxygen isotopic composition of ore fluids is between -2.1 to 3.8 ë at 250¦C and -0.1-5.8 ë at 300¦C. Oxygen isotope analyses have revealed significant variations in d18O values with elevation and gold grades. Zones of gold enrichment coincide with a zone of variable oxygen isotope values at the top of the vein system, where boiling and/or fluid mixing most likely occurred. Oxygen isotope values varying with gold grades within the Waitangi conduits suggest that d18O values may be useful in targeting bonanza grade gold mineralisation in epithermal vein systems.

Jan 1, 1993

Common practice in mineral resource estimation consists of partitioning the orebody into several domains defined by grade intervals, prior to the geostatistical modelling and estimation/simulation at unsampled locations. This paper shows the pitfalls of grade domaining through a case study in which we compare the performance of several estimation schemes and demonstrate that the use of domains defined by grade cut-offs implies a deterioration of the resource estimates, mainly in what refers to precision and conditional bias. Then, several conceptual limitations of the grade domaining approach are stressed, in particular the fact that it does not account for the spatial dependency between adjacent domains and for the uncertainty in the domain boundaries. Also, this approach is shown to be sensitive to the cut-offs that define the domains, to provoke artifacts in the kriging maps, histograms and scatter grams between true and estimated grades, and to lower the kriging variance, a feature that may impact the mineral resource classification. An alternative approach is finally proposed to overcome these limitations, based on a stochastic modelling of the grade domains and a co-kriging of the grades using information from all the domains. Keywords: geostatistics, kriging, conditional bias, geological control, grade zoning.

Jan 1, 2005

The exploitation of the underground is currently undergoing a major transformation process. Besides mining, alternative ways of utilization are playing an increasingly important role. These alternative utilizations include the storage of gases, the disposal of radioactive wastes and the implementation of geothermal storage facilities. In addition, more and more mining operations are being shut down, like the German hard coal mining industry in 2018. But the integrity of closed mines must be ensured in the post-mining phase.

Jan 7, 2020

By Richard L. Rains

The U.S. Bureau of Mines conducted a field study of mines and prospects of the Black Canyon RARE II area (No. 5061), Inyo County, California, from June to October 1981. Geological) geochemical, and geophysical studies were conducted by the U.S. Geological Survey. The Black Canyon RARE II area is east of Owens Valley and 6 mi east of Bishop, California. The principal mineral commodities are gold, silver, lead, zinc, and tungsten. Properties with resources in and adjacent to the area are listed in table 1; the locations are shown on figure 1.

Jan 1, 1983

By J. R. Bartels

The U.S. Bureau of Mines has established a wire rope research laboratory to examine the factors that affect the life of wire rope. Two sin-diameter 6x25 fiber core (FC) ropes were degraded on a bending fatigue machine, These were the second and third ropes in a series of tests on this construction and size rope. Tensile and nondestructive tests were performed on samples of the rope to determine the relationship between rope deterioration and rope breaking strength. The tests indicated that once a wire rope nears the end of its service life, both deterioration and the consequent loss of rope strength begin to increase at an accelerated rate.

Jan 1, 2010

By M. E. Rossi

All large-scale applications of conditional simulations intend to benefit from the ‘correct’ (or’ accurate’) characterization of uncertainty, adequately describing the variability observed from the data and its impact on the final objective. This paper discusses a number of relevant issues that highlight the extent to which, in reality, a model of uncertainty is dependent on the random function model chosen. Often in the presence of large number of conditioning data most available random function models will provide similar models of uncertainty. When conditioning is scarce, the resulting models of uncertainty will vary more widely, since the final output will depend mostly on the underlying assumptions of the model chosen. The application described in this paper is taken from a large porphyry Cu operation in northern Chile, and it demonstrates the impact of several variables on the resulting models of uncertainty. In particular, some of the decisions involved include the number of conditioning data and the underlying Random Function model used (Gaussian or indicator-based). Also, implementation-specific parameters must be decided upon, such as grid size used, random number generator, simple or ordinary kriging, multiple-grid simulation, and simulation of irregular three-dimensional bodies (as opposed to regular grids). Some practical guidelines are proposed to deal with these decisions.

Jan 1, 2003

By Phillip R. Moyle

Several deposits in the Sheep Hole/Cadiz Wilderness Study Area (WSA) have small identified or potential for undiscovered gold and silver resources. One prospect area is a potential target for molybdenum. Most base and precious metals and one uranium deposit in the study area are of the fissure-filling, contact metamorphic type associated with late stage fluids of the Cretaceous Cadiz Valley batholith. Some evidence suggests limited Tertiary and Quaternary mineralization. Mineral deposits are controlled by faults, shear zones, and joints which strike northwest and dip northeast or southwest. Although undefined, calcium, sodium, lithium, and strontium brines are inferred within the study area. Some potential for oil and gas and geothermal resources is indicated by the interest private industry has shown in the eastern part of the study area. INTRODUCTION The U.S. Bureau of lines and U.S. Geological Survey conducted a mineral survey of the Sheep Hole/Cadiz Wilderness Study Area (p1. 1) which encompasses approximately 205,000 acres (83,000 ha) in south-central San Bernardino County, California. The U.S. Bureau of Mines studied the mineral resources of mines, prospects and mineralized areas; geological, geochemical, and geophysical investigations were conducted by the U.S. Geological Survey.

Jan 1, 1982

By I P. Hodkinson

SMC Resources Limited is implementing a selective mining approach at the Hadleigh Castle mine, formerly operated by Aurora Gold Limited. The main ore zone has a length of 250 metres and dips at 40 - 45¦ to the south. Gold mineralisation occurs in a variety of quartz-sulphide lodes in sericitised granodiorite. Shallow dips, alteration intensity and mineralisation style combine to make mining relatively difficult. Previously unworked, high-grade, shallow dipping (30 - 45¦), narrow quartz-sulphide lodes within the hanging-wall of the deposit are also being selectively exploited. Annual production of 35 000 oz Au is forecast from 185 000 tpa ore grading 6.5 g/t Au over a currently envisaged mine life of six years. Operations completed to-date include deepening the decline and access development of the first two levels beneath the previous workings. Longhole stoping operations have commenced in the main ore zone with air leg stoping also underway in the hanging wall lodes.

Jan 1, 1998

By M. B. Kime

"A set of experimental batch leaching tests studied the effect of pH, time, temperature, and stirring speed on the relative Cu, Co, Ni, and Fe leaching yields of an oxidized copper-cobalt ore sample in an aqueous hydrochloric acid solution. The results were statistically analyzed and modelled using the structural equation modelling method. Models showed that Cu, Co, and Ni leaching yields were strong functions of the leaching time and leaching temperature, whereas the Fe leaching yield depended on the leaching temperature, stirring speed, and pH. Under optimum leaching conditions yields were 99.8% Cu, 82.4% Co, 91.3% Ni, and 30.6% Fe.RÉSUMÉ Une série d’essais expérimentaux de lixiviation en bâchée ont été menés pour étudier l’effet du pH, de la durée d’attaque, de la température et de la vitesse de brassage sur les rendements relatifs de lixiviation du cuivre (Cu), du cobalt (Co), du nickel (Ni) et du fer (Fe) d’un échantillon de minerai de cuivre-cobalt oxydé dans une solution aqueuse d’acide chlorhydrique. Les résultats ont été analysés et modélisés statistiquement à l’aide de la méthode de modélisation par équation structurelle (SEM, de l’anglais structural equation modelling). Les modèles ont montré que les rendements de lixiviation du Cu, du Co et du Ni dépendaient énormément de la durée d’attaque et de la température de la lixiviation ; le rendement de lixiviation du Fe, quant à lui, dépendait de la température de la lixiviation, de la vitesse de brassage et du pH. Dans des conditions optimales de lixiviation, les rendements étaient de 99,8 % pour le Cu, de 82,4 % pour le Co, de 91,3 % pour le Ni et de 30,6 % pour le Fe. INTRODUCTIONThe Katanga province in the Democratic Republic of Congo hosts the northwestern part of the Central African Copperbelt. This region abounds with large, rich deposits of sulfide and oxidized copper-cobalt ores. In general, the main valuable minerals present are malachite (CuCO3Cu(OH)2) and heterogenite (CoO(OH)). Common impurities found in heterogenite are Cu, Ni, Si, Al, Mn, and Fe. The substitution of Co by other cations (e.g., Cu, Ni, and Fe) has an influence on the crystallinity of heterogenite (Deliens, 1974). In general, well-crystallized varieties of heterogenite have lower impurity contents, whereas amorphous heterogenite types usually contain more impurities (Thys et al., 2009). Further, in heterogenite, Co can occur in the 2+ and 3+ oxidation states. The gangue generally consists of quartz (SiO2), talc (Mg3Si4O10(OH)2), kaolinite (SiO2·Al2O3·2H2O), limonite (Fe2O3·3H2O), and goethite (FeO(OH)). Oxidized copper-cobalt ores are often treated by hydrometallurgical methods, whereas sulfide ores are often treated by flotation or pyrometallurgy, depending on their grades. Hydrometallurgical methods typically entail selectively dissolving the metals of interest (Cu, Co, and Ni) in aqueous solutions (leaching), transferring the dissolved metals to an organic solution, and retransferring these to a second aqueous solution (solvent extraction). Copper and nickel are readily dissolved in an acidic aqueous media. In contrast, cobalt is difficult to dissolve, especially if it is present in the third oxidation state; however, this species becomes soluble after it is reduced to Co2+ (Mwema, Mpoyo, & Kafumbila, 2002; Kime & Makgoale, 2016)."

Jan 1, 2017

By H. Lundberg

Introduction The world has been suffering from an excessive production of all kinds of raw materials, and the metals and petroleum are no exception. As a consequence, at the moment, the urge to find new mineral deposits is almost non-existent and prospecting languishes. But from previous experience we know that sooner or later new supplies will be needed. Mineral deposits become exhausted, and to keep up the supplies of our metals and petroleum, new deposits must be found. Even now, a supply of petroleum of domestic production would not be unwelcome in Canada. It is not, therefore, so entirely malapropos to discuss means of finding ores and oil as it would seem. Almost any physical property connected in definite manner with minerals and rocks may be made the basis of geophysical exploration. This is particularly true of electrical resistivity, and its utilization in electrical prospecting has been the deciding factor in the discovery of such big ore-bodies as Buchans mine, Newfoundland, and the large copper ore-bodies in northern Sweden, etc., as well as in the solution of many foundation and structural problems. The importance of electrical prospecting has been growing steadily, and already there exists hardly any exploration project involving geological problems which may not profit by its application. Electrical prospecting is marching on, and neither temporary failures, nor incompetence, nor over-optimism, nor ill-will and pessimism, nor bad times and business depression, will be able to halt its progress.

Jan 1, 1931

By J J. J Chen, J C. Zhao

A water/air model was developed to simulate the refining of molten aluminium by the sparging of gas through an impeller. The optimal gas dispersion depends upon selecting the correct gas rate for a given impeller rotational velocity to prevent flooding or channelling. Correlations illustrating this flooding behaviour exist for standard impellers within standard tank geometries. However the validity of these correlations has not been substantiated for gas dispersion in high temperature molten metals with non-standard tank and impeller dimensions. Metal refining is most efficient when fine bubbles are generated and uniformly distributed within the treatment tank. The application of some measuring technique able to detect this distribution within a non transparent operating treatment tank would be invaluable, enabling the optimisation of gas flow and impeller speed.   A technique has been developed to measure the pressure fluctuation levels at specific points in the water model. Comparison of these pressure fluctuation data with photographic evidence obtained in the water model suggests that the flow regime in the metal treatment unit may be determined using this technique.

Jan 1, 1995

By Francis E. Federspiel

Based on the investigation by the Bureau of Mines, tungsten is the principal metal found in the study area; gold and silver were the primary metals found at one property. Tungsten occurs in tactite zones formed near contacts of calcareous metasedimentary with granitic intrusive rock. Gold and silver were found primarily along quartz veins in granitic rocks; small amounts of those petals also occur in the tactite zones. Since 1856 approximately 200 lode claims or relocations have been recorded, mainly in the southwest corner of the study area. Tungsten production in this part of the area has been inure than 7,800 short ton units (70,800 kg) of tungsten concentrates; about 4,800 short ton units (43,500 kg) were from the Mud Lakes Mine; and 3,100 short ton units (27,200 kg) were from the Rainbow Mine 1/.

Jan 1, 1981

By Daniel Su

Approximately 90% of the primary roof bolts used in CONSOL?s Pittsburgh seam coal mines is 2-piece, 8-foot long, 7/8? (or ¾?), high-strength, resin assisted, mechanical shell tensioned bolt. The remaining 10% is the 2-piece, 8-foot long, 7/8? combination bolt, which employs 4 feet of fast resin to anchor the deformed rebar at the top of the hole. In either system, a 1-3/8? hole is required to accommodate the mechanical shell and the coupler. The cheaper torque-tension rebar system, which is typically fully-grouted with 2-speed resin and which typically provides low bolt tension, is not used in CONSOL?s Pittsburgh seam mines. Rather, it is used in CONSOL?s Central Appalachia mines, where the roof rocks have CMRR rating of 50 or higher. Fully-grouted headed rebars, on the other hand, are used in CONSOL?s room-and-pillar mines. The selection of tensioned versus non-tensioned, fully-grouted bolts for coal mine primary roof support has been debated for the past thirty years. Many researches have been conducted to understand the theoretical bases behind the two systems. This paper describes CONSOL?s experience of using a new fully-grouted, mechanical shell tensioned bolt in the Pittsburgh seam with the development of low insertion force resin.

Jan 1, 2007

By J Dwyer, M Hill

Downer’s mining division has made an operational and financial commitment to developing engineered solutions that mitigate the risks associated with operator proximity to uncontrolled development drill boom movements, and unguarded rotating drill steels.With the potential for serious injury or fatality, these identified risks are categorised as critical. Previous attempts by the industry to engineer them out have produced limited success, with numerous incidents still occurring year on year. Ultimately, the industry (as a whole) remains reliant on procedural prevention for operator safety.Downer understood the success of such an initiative would largely depend on the effective collaboration between operational experience, technology experts and automation. With so many variables requiring consideration; such as physical operator movement, machine boom movements, variable machine positions, and underground environmental impacts – challenging traditional technologies was necessary to deliver an optimal solution.For that reason, discrete detection (similar to laser curtains or beams) was considered not fit for purpose. The use of situational mapping, using rotating lasers, however, provided the optimal solution. The lasers collect data that is then processed using a custom software application.The software application is specifically programmed for tracking and classifying objects within detection zones, using advanced algorithms and filtering. Recognition and removal of non-positive disturbances are possible without losing personnel detection capability. The detection of relevant classified objects (humans) is determined by analysis of object size, age, movement, and speed etc. When the relevant object is detected, an alarm and inhibit function is applied preventing drilling functions.Any breach of the safety zone (forward of the front jacks) will automatically disable the hydraulic boom function. This can only be reset in the cabin once the person or persons have returned past the front jacks of the development drill into the safety zone.Downer, in collaboration with partner YUMARR Automation, has successfully developed this reliable boom isolation system, and is called JumboGuard. The system has now been commissioned and installed across all Downer Mining development drill fleets, operating in Australia.CITATION:Hill, M and Dwyer, J, 2017. JumboGuard – automatic boom isolation system, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 287–294 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

By K. Leung, J. E. Udd, L. B. Geller, F. Kitzinger

"Sixteen miners died tragically at the Paymaster gold mine in Timmins, Ontario, in February 1945 when a badly corroded hoist rope broke. The investigation of the Royal Commission that followed arrived at a number of recommendations (The Legislative Assembly of Ontario, 1947) aimed at avoiding future disasters of this kind. One consequence was the development and legislated use in Canada, several decades ago, of powerful electromagnetic (EM) instruments for the non-destructive testing of mine shaft wire ropes. The authors have been involved for many years in the design, production, and testing of EM instruments (Geller and Udd, 1990, 1992; Geller and Kitzinger, 1991; Geller et al., 1992). Since the mid-1990s, particular attention was paid to the design and operational results obtained from the computer controlled portable MagnographTM II wire rope tester (Geller et al., 1995, 1998).In the present paper, the authors summarize further hardware- and software-related developments of this instrument. Further, an account is given of the results obtained from the most recent design known as the Perma- ScanTM testing system. This is also a computerized dual-function system. In it, however, the sensor head is designed primarily, if not solely, for permanent installation and for remotely controlled operation. This represents a basic departure from traditional designs, which were intended for ad hoc temporary installations. The remote-controlled instrument described in this paper has now been in operational use for more than four years."

Jan 1, 2003

By D Cooke

In 2010, Kalgoorlie Consolidated Gold Mines (KCGM) was Australia’s largest gold producer, with total annual production of 788 000 ounces. Of the gold produced by KCGM in 2010, 95 per cent was extracted from the Fimiston open pit, also known as the Superpit. The Fimiston operation encompasses the historic Golden Mile, from which more than 55 million ounces of gold have been extracted from the world-class Fimiston lode style mineralisation.The operational performance of the KCGM Fimiston open pit was reviewed for the period between 2005 and 2010. Key performance metrics reviewed included mined tonnes and grade, cost per ounce of gold produced and the mine to mill reconciliation trends. The years 2007 and 2008 were characterised by a decline in performance against key performance metrics. The ore zones were diluted, with the excess tonnes mined resulting in lower grade and an increase in the cost per ounce. Poor reconciliation between ore mined, the ore reserve model and the grade control polygons was also observed.A series of improvement initiatives were implemented in late 2008. As a result of changes made to the grade control and mining practices, the site performance recovered. Unplanned dilution was reduced, which had a positive impact on mined grade. The lower tonnes combined with higher grade reduced the cost per ounce to below budgeted levels in 2009 and 2010, enhancing the profitability of the operation. The operational performance between 2005 and 2010 was compared to the turnover statistics for the KCGM geology department over the same period. Turnover accelerated between 2005 and 2007, peaking at an annualised rate of 43 per cent. With the onset of the Global Financial Crisis and the implementation of retention initiatives, turnover reduced significantly between 2008 and 2010. A strong consistent correlation was observed between the turnover trends in geology and the performance of the grade control function and resultant site metrics.The cost of turnover is known intuitively, however, rarely quantified. To evaluate the benefit of the improved performance, a detailed financial model was used to quantify the impact of the grade control function. In 2010, the headgrade exceeding budget by just four per cent contributed an additional A$24 M of value to KCGM. In contrast, if the 2008 performance had been replicated in 2010 (-9 per cent on headgrade), the result would have removed A$61 M in value from the business. The KCGM experience between 2005 and 2010 demonstrates the value of human capital in a mining operation and the importance of a high performing geology grade control team to the profitability of a mining operation.

Aug 22, 2011