Search Documents

By K. Lang

A case study is provided that highlights the successful use of high efficiency electrical submersible pumps (ESPs) adapted from the oil and gas industry for a large scale, open pit mine dewatering operation. In this case, the mine is Goldcorp?s Peñasquito Mine, Peñasco and Chile Colorado open pit development areas in Zacatecas, Mexico. At the time of publication (July 2012), there were 18 vertical bedrock dewatering wells producing an average flow rate of 350 liters per second (lps) from the Peñasco and Chile Colorado development areas. Average pumping rate per well was 18 lps, with a maximum of 44 lps. The depth of wells varies from 330 m to 500m, and includes both in-pit and perimeter (ex-pit) pumping centers. A network of 50 piezometers was used to monitor the response of groundwater levels to pumping. Since dewatering operations were initiated in 2007, groundwater elevations decreased overall, from approximately 1950 m above sea level (masl) to around 1625 masl, for a total of 340 m of drawdown. The pit floor elevation was approximately 1655 masl. All of the producing wells were constructed with 16-inch boreholes, completed with 10-inch diameter blank casing and louvered screen sections and equipped with ESPs. The application of ESPs has proven to be highly effective in the case of Peñasquito?s dewatering operations. Noted advantages include the following: ? Small diameter pump allows use of smaller diameter boreholes (16 inches) and casing / screens (10 inches) reducing well drilling and construction costs ? Greater application range for flow rate and total dynamic head ? Variable speed drive systems for greater energy efficiency and flow rate optimization ? Integration of downhole instrumentation into the motor and pump assembly The advantages and benefits of using high efficiency ESPs revolutionized the dewatering program at Peñasquito open pit mine as evidenced by the number of deep vertical well installations and high dewatering flow rates and total dynamic head requirements.

Feb 27, 2013

By Jonathan Baggett, Nino Ripepi, Amin Abbasi, Richard Bishop, Juan Monsalve, John Hole

This work focuses on the operational and safety issues associated with karst voids in large opening underground mines. Issues include water inrush, structural instability, and engineering uncertainty in these environments. Coupled with the fracturing prevalent in folded sedimentary rocks, karst voids are complex and challenging ground-control risks. Traditional methods of predicting karst void locations, such as probe drilling, are impeded by the inconsistent spatial distribution and variable sizes of the features as reported by Li et al. (J Rock Mechan Geotech Eng:232–242, 2010) and Hassan et al. (Procedia Chem 19:737–742, 2016). Ground-penetrating radar (GPR) is a geophysical technique that transmits radio waves into a medium and subsequently detects reflected waves via a receiver. The travel time and energy of received signals are then processed and interpreted. The difference in conductivity and dielectric permittivity between limestone and open karst cavities causes strong reflections. GPR is frequently used as a geophysical surveying technique in several industries; however, there is a lack of published research on underground mining GPR applications as reported by Zhao et al. (2015a; Geophys J Int:62–71, 2015b) and Eskelinen and Pellinen (Constr Build Mater:888–898, 2018). The purpose of this work is to demonstrate the use of GPR in an underground stone mine and to discuss the importance of karst void detection ahead of mining.

By G Mark, K L. Blake, G de Jong, J F. Rotherham, N D. Adshead

Magnetite deposits with distinctive ¦ actinolite ¦ apatite-bearing gangue and spatially-extensive sodic-calcic wall rock alteration occur in both Proterozoic metamorphic terrains and Mesozoic-Tertiary magmatic arcs. Examples from both settings constitute significant sources of iron ore (egKiruna, Sweden; El Romeral, Chile) and some host major Cu-Au deposits that have a local association with K-silicate alteration (eg Cloncurry district, NW Queensland; Copiapo district, Chile). A growing body of evidence points to a hydrothermal origin for these systems involving high temperature, low S oxidised fluids. The Cloncurry magnetite-Cu-Au deposits are products of the local structurally channelised influx of a specialised high salinity ore fluid into larger-scale alteration systems developed during pluton emplacement at greater depths than those associated with subvolcanic (porphyry) Cu-Au deposits. The geological characteristics of deposits in magmatic arcs are consistent with a similar mode of origin albeit in rather different tectonic settings.

Jan 1, 1995

By Tian Sugui

By means of the measurement of the enduring property and microstructure observation, an investigation has been made into the influences of the element Re and TCP phase on the enduring property of the single crystal nickel base superalloys. Results show that the needle-like TCP phase is precipitated along the <110> orientation on {111} planes in Re-containing/free superalloys during the long term aging, the TCP phase is identified as µ phase, and the precipitated µ phase in 4.5%Re alloy is gradually spheroidized during aging. Thereinto, the needle-like µ phase may obviously decrease the enduring lifetimes of the alloys due to the consumption of the refractory elements and the effect of the stress concentration. But the stress concentration is not easily generated in the regions near the spherical-like µ phase, which is a main reason of reducing the enduring lifetime of 4.5%Re alloy to a small extent.

Jan 1, 2010

By Mohammad R. Jafari

The Camp Dresser & McKee (CDM) has been retained by the Sacramento Regional County Sanitation District (SRCSD) to design the Mather Interceptor, a portion of the South Interceptor and Mather Interceptor program. The Mather Interceptor consists of 14,667 feet of 54 to 72 inch gravity interceptor. Approximately 90 percent of the alignment will be constructed via tunneling. Cobbles and boulders in a sand/gravel matrix dominate the ground conditions combined with seasonal perched groundwater table at some of the deeper reaches of the alignment, impacting design consideration. This paper will present the results of a comprehensive geotechnical investigation conducted for this project and in-depth technical evaluation of various trenchless techniques feasible for tunneling in the cobble and boulder laden formations of this project. This paper will also present the risks and issues of the design alternatives and selection criteria.

By Sangseom Jeong, Moonkyung Chung, Junyoung Ko

"Abstract The plugging effect of open-ended piles in sandy soil is analyzed by full-scale field test and plugging measurement. PLR (plug length ratio) measurement data from 144 field cases are analyzed with pile diameter. Based on the plugging measurements, PLR of open-ended piles which have above 1000mm diameter is predicted to be above 0.9. Through plugging measurements, a new empirical method is suggested for quantifying the plugging effect of open-ended piles. The proposed PLR equation is possible to predict the behavior of soil plug in the preliminary design stage. In addition, in order to investigate the behavior of the soil plug of open-ended pile, field load tests are performed on instrumented three piles driven into sand. It is obtained that the resistance components of open-ended pile are separated by double-walled pile system. It is found that inner shaft capacity is developed nearby pile tip. However, upper soil plug did not influence the inner shaft capacity. Also, it is found that all test piles are floating piles and unplugged condition because the sum of inner shaft capacity and outer shaft capacity is calculated about 58 to 76% of the ultimate bearing capacity.INTRODUCTIONIn Korea, a number of huge construction projects such as harbor terminals, offshore grand bridges, and lifeline systems are progress in urban and costal area. In these areas, steel pipe piles are frequently used to support high-rise buildings and heavy weight structures for ensuring structural safety rather than serviceability limit capacity. Also, steel pipe piles are frequently used in civil engineering structures because they have many advantages such as high-load bearing capacity, light weight and outstanding workability. The mega foundations of grand bridges and high-rise buildings are required in geotechnical engineering. Large diameter driven piles are frequently used in several projects.Many specifications such as API, FHWA and AASHTO have been reported as a design guideline of plugging effect, however , the current design method for plugging effect of steel pipe piles are mainly based on the our knowledge derived from observation of the model test or the small diameter pile load test. Therefore, these specifications have limitation to apply the large diameter steel pipe piles.Much work has been done to study the plugging effect by many researchers. Yamahara (1964) reported that soil plug has been modeled as a thin disk element as shown in Figure 1, since the increment of radial strain of the soil plug can be neglected due to high rigidity of the pile compared to that of the soil plug. Klos and Tejchman (1977) reported that the end bearing capacity of open-ended piles was almost equal to that of a closed-ended pile when penetration depth of pile was above 15times the pile diameters by model tests. Paikowsky and Whitman(1990) reported fundamental studies on mechanism of plugging effect in sand. Paik et al. (2003) reported that empirical relations for plug load capacity, annulus load capacity, and shaft load capacity of open-ended piles are proposed based on the model pile tests. As discussed above, much work has been done in the area of plugging effect. But little work has been done to study the plugging effect by full scale field tests."

Jan 1, 2014

By Kray Luxbacher, Erik Westman, Peter Swanson

Three-dimensional time-lapse velocity tomograms were generated to image stress redistribution around a longwall panel to produce a better understanding of the mechanisms that lead to ground failure. Mining-induced microseismic events provided passive sources for the three-dimensional velocity tomography. Surface-mounted geophones monitored microseismic activity for 18 days. Most similar studies have utilized active sources including longwall shearers, controlled explosions, and hammer blows. These active sources generally require a person to initiate and measure the location and time of the source, and are not conducive to continuous monitoring. This method utilizes mining induced microseismic events as passive sources and lends itself well to continuous monitoring. Two event location methods were compared in order to move toward quantification of tomographic results in terms of ground conditions. Additionally, LAMODEL was utilized to determine the expected stress distribution around the longwall panel and compare these images to the velocity tomograms. Eighteen tomograms were generated, one per day, and high velocity regions in the set of tomograms generated from the initial location algorithm correlated with abutment stress redistribution predicted by numerical modeling. This research is significant as it has the potential to improve safety in underground mines and is the only example of long term passive velocity tomography implementation for the purpose of inferring stress redistribution around an area of active mining. Though still immature, this technology has the potential to allow mine personnel to image areas of active mining on a regular basis and detect areas with anomalous velocity distributions indicating potential safety hazards.

By J. Lovering, M. Allan

"INTRODUCTIONThe Afton Mines property is located 180 air miles east-northeast of Vancouver and nine miles west of Kamloops, a city of 60,000 people in south central British Columbia. The deposit is located adjacent to the Trans-Canada Highway at an elevation of 2,231 feet above sea level.Interest in the property dates back to 1898, when a 330 foot shaft was sunk on the Pothook claim immediately south of the existing operations. Since that time many companies and individuals have investigated the possibilities of the area but it was not until 1972 that Afton Mines Ltd. located a significant zone of copper mineralization. The feasibility study was completed in the period 1974-1975, by Teck Corporation Ltd., who control Afton through 50% direct ownership and 65% ownership of Isa Mines, who own a further 23%. Construction began in March, 1976. Ore production started in August, 1977, and the first ore was fed to the mill on December 8. This was the third mine to be brought into operation by Teck since 1975, the others being Newfoundland Zinc and Niobec.The orebody is a porphyry copper deposit which has undergone supergene alteration. It is 1,700 feet long in a west-northwest by east-southeast direction, 300 feet wide and dips at 55° to the south. The mineralization in the supergene zone, which accounts for two-thirds of the known deposit, is rather unusual in that the copper is present primarily as native copper and chalcocite. The grade is one percent with the distribution: 70% native, 25% chalcocite, and 5% chalcopyrite with bornite, covellite, and cuprite."

Jan 1, 1979

By F. M. Doyle

Metal removal kinetics and metal ion selectivity in ion flotation were studied from a thermodynamic perspective. Surface tension data could be used with the Gibbs adsorption equation to quantitatively predict the metal ion removal kinetics in alkylsulfate-Cu systems. However, surface tensions predicted cation selectivity coefficients in the sodium dodecyl-sulfate (SDS)-Cu-Ca and SDS-Cu-Pb systems rather poorly, although the predicted order of the selectivity (Cu2+<Ca2+<Pb2+) was correct. Another thermodynamic selectivity model, which used the Grahame adsorption equation and a geometrical analysis, predicted cation selectivity coefficients that agreed very well with experimentally measured values.

Jan 1, 2000

THE Talisman mine is situated on the Waitawheta (pronounced Wytaffetta) river just above its junction with the Chinemuri (pronounced Chinnemurre) river near Karangahake, NZ. The explored reef-bearing portion of the claim includes the angleformed by the junction of the rivers and extends southwards for slightly over a mile (See Plate V.). The country is mountainous both rivers flowing through precipitous gorges.The trig. station on Karangahake mountain is almost directly above the workings on the Bonanza section and is 1680 ft. above river level, the adit from the gorge giving 1200 ft. of backs measured vertically. The officers of the N.Z. Geological Survey are engaged in a detailed survey of the Waihi district and the rocks of Karangahake are under examination. The rocks of the district are andesites and dacites much altered and silicified. One of these exhibits a columnar structure in the mass in the Waitawheta gorge near the surface workings on Taukani hill, also on the southern bank...

Jan 1, 1912

By J. Utt

Recent developments in circulating fluidized bed (CFB) once-through supercritical technology (OTSC) have enabled this technology to be offered as a utility-scale alternative competing head-to-head with pulverized fuel (PF) OTSC offerings. One clear example is the CFB supercritical unit at the Lagisza Power Plant in Poland, owned by PoludniowyKoncernEnergetyczny SA (PKE). This unit has now been in commercial operation for three full years, exhibiting very good performance, and has validated Foster Wheeler&apos;s performance model at this utility scale as well as for units in the 600 MWe and 800 MWe size ranges offering net efficiency of -43 per cent (LHV basis). This operating unit has also proven the use of the world&apos;s first FW/BENSONTM vertical-tube OTSC low mass flux technology. Since the Lagisza original international tender specified OTSC PF technology, it is important to note that the alternative selection of CFB OTSC technology over conventional PF technology is of historic significance, not only for the validation of the CFB supercritical platform as a viable alternative to conventional PF technology, but it also positions the CFB OTSC with fuel flexibility for offering of sizes up to and including 800 MWe units. This paper explores the differences between CFB OTSC technology and standard PF OTSC in utility power generation. Selection criteria, fuel burning range in both technologies, and other selection drivers are discussed. Economic analysis of both technologies, based on existing cases, is also provided. Also discussed are the technical advantages and uses of each technology. Foster Wheeler has recently been awarded a contract for four units of CFB OTSC technology, which utilizes a 2 on 1 configuration of two 550 MWe CFB OTSC boilers on two single 1000 MWe turbines. Essentially this provides a fuel-flexible low-emissions alternative to a 2 x 1000 MWe solid fuel power block.

Jan 1, 2012

By S. G. Ozkan

An investigation was carried out into the effect of physical parameters, such as particle size of the sample, residence time, solid/liquid ratio and impeller speed in the flotation cell, on the solubility in soft tap-water of colemanite (calcium-bearing borate) from Emet, in Turkey. Solubility increased steadily with residence time from 5 to 20 min but only minimally thereafter. There was a similar increase with impeller speed from 500 to 1 500 rev/min, beyond which a solubility of around 1.05 g/l was again established. There was a slight decline in solubility as the solid/liquid ratio was increased from 1 to 30%, with stable values around 1.05 g/l at a 20% ratio, while a sharp decrease was observed with decrease in size down to the -20 micrometre fraction. The effect of solubility should be taken into account if the application of a wet-processing method is being considered for the ore, while it can also result in losses of material during handling and storage

Jun 21, 1905

By James P. Ulery

In This Chapter [Geologic features associated with anomalous methane emissions Gas outbursts and blowers Methane drainage strategies for mitigating anomalous methane emissions and General considerations for a methane drainage program] This chapter summarizes how certain geologic features may be associated with unexpected increases in gas emissions during coal mining. These unexpected emissions have the potential to create explosive conditions in the underground workplace. Also discussed are the generally used practices to alleviate potential hazards caused by gas emissions associated with these geologic features. INTRODUCTION Unforeseen mine gas emissions in quantities sufficient to create hazardous conditions have been attributed to sources outside the mined coalbed since the first documentation of methane explosions in coal mines [Payman and Statham 1930]. Geologic features such as faults have long been recognized as conduits for gas flow from strata adjacent to mined coalbeds [Moss 1927; Payman and Statham 1930]. Other features such as sandstone paleochannels, clay veins, and localized folding have also been recognized for their impact on gas emissions into mine work-ings [Darton 1915; Price and Headlee 1943; McCulloch et al. 1975; Ulery and Molinda 1984]. The fact that strata adjacent to mined coalbeds can emit large quantities of methane gas into mine workings is not surprising from a theoretical perspective. Many researchers have recognized that during the burial and diagenesis of the organic matter forming today’s minable coalbeds, similar dispersed organic matter in adjacent strata has produced methane in quantities far exceeding the storage capacity of the coal and surrounding rock [Juntgen and Klein 1975]. It is not surprising then that large quantities of methane can remain trapped in these strata. A potential hazard occurs when mining of a nearby coalbed causes pressure differentials and mining-induced fractures conducive to gas flow into the mine workings from these strata. This gas flow may be facilitated or temporarily impeded by the presence of geologic structures or anomalies.

Jan 6, 2006

By Ke Yang

Drilled shafts are widely adopted as the foundation for sound walls. However, there has been a lack of uniformity in design and analysis methods and design criteria, in terms of factor of safety against ultimate capacity failure as well as the allowable deflection. In order to establish a uniform design methodology for the drilled shafts supporting sound walls in cohesive and cohesionless soils, respectively, a database of full-scale lateral load tests on fully instrumented drilled shafts was collected. Based on the compiled database, existing design methods and design criteria of laterally loaded drilled shafts were evaluated. Broms method and COM624P (or LPILE) are suggested as the design methods for drilled shafts supporting sound walls in both cohesive and cohesionless soils. Additionally, the corresponding design criteria, including factor of safety and permissible deflection, for both design methods are recommended. Two full-scale lateral load tests on fully instrumented drilled shafts were subsequently conducted in Colorado to further verify the design recommendation. A comprehensive geotechnical investigation program was also carried out at the two new lateral load test sites that included pressuremeter test, SPT, as well as laboratory triaxial consolidated undrained tests and direct shear tests on the soil samples taken from the lateral load test sites. The test results obtained at these two load test sites were employed to validate the recommended geotechnical design and geotechnical testing methods for the drilled shafts supporting sound walls.

Jan 1, 2007

By Urie R. W

Fluidized bed roasting of copper concentrates from Mt. Morgan, Mt. Lyell, Mt. Isa, and Peko was performed in a 3 ft 6 in diameter, slurry fed, pilot plant roaster operated under autogenous conditions to produce calcines with desirable leaching properties. A 12 in. diameter, externally heated roaster, provided with a dry feed system, was also used.An account is given of important factors which influence roaster behaviour and performance, and the effects of operating variables on calcine composition and leaching properties are described. Due to copper ferrite formation, a maximum of approximately 50 per cent of the copper in the calcines may be in the form of CuO before the copper leach efficiency falls significantly below lOO&apos; per cent. Recovery of gold by cyanidation of leach residues was consistently high and independent of roasting conditions.INTRODUCTIONIn traditional practice copper is produced by pyrometallurgical techniques when the ,copper minerals in the ore or concentrate are predominantly sulphides, and by hydrometallurgy when the minerals are oxidized. Copper smelting is most suited to large scale operations, and for many years small to medium size mines with sulphide orebodies have been interested ill; alternative processes.Since hydrometallurgical plants (ie. leaching and electrowinning plants) are essentially unitized, they may be scaled down in output without much loss in efficiency or increase in processing cost, and many proposals have been made for the application of this type of process following roasting of the sulphides to render the copper soluble. However, until the advent of fluidized roasting, it was not possible to control the roasting operations sufficiently precisely to produce calcines consistently of the required leaching characteristics.

Jan 1, 1961

By A. C. Richardson

The mine of the Porter Coal Co. is located at the town of Porter in the northwestern part of Jefferson, County, Ala., about 20 miles west of Birmingham. The operations in this mine are confined to the middle and bottom benches of the Mary Lee bed. The coal from the Porter mine is handpicked and washed before being placed on the market. The handpicked lump coal and the washed egg and nut, coal are sold chiefly as domestic and steam-raising fuel. The coal finer than 1 inch is washed in 2-compartment jigs and utilized in the manufacture of metallurgical coke. The coal company has found that, when coal ranging in size from 1 to 0 inch is washed in jigs, a considerable amount of high-ash material finer than 3/16 inch remains in the washed coal. This paper gives the results of an investigation which was conducted for the purpose of determining the washing characteristics of the through 316-inch raw coal and the extent to which the ash might be reduced by means of coal-washing tables. This investigation has been made in connection with an. extensive study of the coal-washing problems now being conducted by the United States Bureau of Mines and the University of Alabama, with the cooperation of the coal-mining companies of the State.

Jan 1, 1933

By C. K. Kocsis, S. Hardcastle

Mine ventilation, requires electricity to operate the fans and fossil fuel for heating. Typically, this accounts for approximately 40% of the overall underground energy consumption. This is considerable, and one of the major causes of this expense is that most mine ventilation systems are designed for the "worst-case-scenario" with respect to ventilation demand, which is commonly dictated by diesel equipment usage. Once designed, mines tend to operate their ventilation system at this peak level despite their exceeding day-to-day development and production needs due to lack of appropriate ventilation controls. In underground metal mines, TeleminingTM, which includes the tele-remote operation of mobile development and production equipment from surface, will change the mine design criteria including its support infrastructure such as the ventilation system. With the removal of machine operators to surface control rooms, conventional ventilation systems designed to dilute and remove pollutants can become redundant. Depending on the ultimate need for ventilation, its cost in automated mines with tele-remote equipment operated from surface will be lower than the cost of ventilation in conventional mines. These cost savings, which could be significant, would not only come from the ability to reduce the amount of ventilation in the mine, but also through the capacity to automate its distribution. This paper provides an indication of the new airflow requirements in stopes and dead-end developments for the tele-remote and automated mining processes based on climatic modelling. Furthermore, this paper makes a cost benefit analysis by comparing the ventilation system operating cost of a conventional underground metal mine based on the mobile diesel powered equipment design criteria with the newly redesigned ventilation system operating cost of an automated mine based on the "heat management" design criteria.

Jan 1, 2002

By R. L. Castro

The extraction of ore in panel caving operations also involves the coextraction of non-economic material, known as dilution. Forecasting, avoiding, and understanding the mechanics of dilution is critical to longterm planning. The models of dilution that are currently in use in panel caving operations are those by Laubscher (1994), who postulated that dilution is due to gravitational flow and depends on the height of interaction, the column height, and the draw uniformity. This paper presents a back-analysis of extraction and dilution behaviour at Codelco?s El Salvador and Andina Divisions, which use panel caving as a mining method. This analysis was conducted in order to review the existent dilution entry mechanisms and calculation methods. Three sources of dilution were identified. The first source is ?gravitational dilution?, which is due to gravitational flow and mixing as dilution migrates by gravity from a sector located above the panel under analysis. The second source of dilution is ?caving dilution?, which occurs when an air gap is formed in a large area and a sudden propagation of a hang-up occurs, inducing early ingress of waste into the production level from a level above. The third mode observed is ?lateral dilution?, which occurs when the panel is located next to an exhausted sector and the broken material enters the draw column early during draw. In the last two cases, dilution could migrate large distances horizontally. The mine data indicated that draw and caving strategy are key for long-term planning of large panel caves.

Jan 1, 2014

By Donald Leroux, Simon Gariépy, Luc Lachance

"Quantitative information about the quality of metal balance results is often overlooked when making important plant production planning decisions. Not only is this common omission made in a context where many measurements taken in and around mineral processing plants carry significant errors, but it also conflicts with the AMIRA P754 Code of Practice for Metal Accounting. The fact that metal balances are typically published without any indication of data quality may give the wrong impression that the measurements are unquestionably accurate. While it is true that statistical data reconciliation can improve the confidence intervals of redundant variables, there is no data processing technique that brings them down to zero at a finite cost. In this paper, we review the entire data flow, starting from field instruments to metal accounting-based decision-making to show how measurement errors are transmuted into business risks associated with production planning. Necessary conditions for first exposing then quantifying such business risks are stated. Pitfalls to be avoided are also discussed. Finally, a simplified risk assessment and management procedure which considers the quality of metal balance results are applied to a polymetallic mineral processing plant. INTRODUCTION Each and every mineral processing plant has production reporting obligations. In this paper, we are concerned with metal accounting reports (Morrison, 2008) where saleable metal flows and inventories are estimated and published. These metal accounting reports are delivered to a variety of stakeholders who use them for internal management purposes (day-to-day plant production planning, plant operation optimisation, capital spending, etc.) as well as for external management (royalty settlements, tolling agreements, etc.). Hence, there should be no doubt that spotless metal accounting is instrumental to high-quality corporate governance (Gaylard et al., 2014) of mining and metallurgical companies. To this extent, one would have expected industry-endorsed standards to have emerged a long time ago. However, the lack of an accepted set of standard procedures for metallurgical accounting was explicitly recognized as an industry-wide problem only in August 2001 during an SAIMM workshop held in Cape Town, South Africa. Discussions that followed this workshop led to the initiation of the AMIRA Project P754, “Metal Accounting and Reconciliation”, in 2003."

Jan 1, 2015

The spatial distribution of copper grades at the Mansa Mina project is highly variable due to the presence of high grade copper/silver/arsenic breccia bodies. Copper grades within the breccia bodies tend to average about 4.5% copper while grades in the surrounding stockwork average about 1.0%. The breccia is known to occur in the vicinity of significant controlling structures, however, the outline and therefore the thickness of the bodies are far from regular. Due to the high grade of these bodies a significant proportion of the value of the project is derived from the breccia tonnages. The irregularity in the outlines/thickness translates into an uncertainty in the breccia tonnage and therefore in the value of the project. Acknowledging the economic importance of the breccia bodies and the risk associated with the breccia tonnage uncertainty, significant additional drilling has been proposed to both understand the spatial distribution of the breccias and reduce project risk. The costs associated with this additional drilling are not inconsequential; thus, a reasonable question is ‘what value is derived from this additional drilling’? To obtain an answer to this important question, a simulation approach is applied. First the deposit is simulated using the existing drilling and the uncertainty in the resource is defined. Next the proposed drilling program is simulated and the simulated data are added to the existing data. Using this expanded data set a second simulation of the deposit is created and once again the uncertainty in the resource is defined. Using this approach, the reduction in the uncertainty in the resource can be determined. To convert this reduction in uncertainty (or reduction in risk) in the stated resource into a dollar value, a method of defining the increase in the project rate of return necessary to account for risk is presented. Using the two different rates of return, the difference in project NPV and hence the value of additional drilling is determined.

Jan 1, 2003