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By M G. Millad, M Zammit

The Kipoi Central (KPC) copper project is located in the Katanga Province in the Democratic Republic of the Congo and is presented here as an example of an operating mine where the Mineral Resource was initially estimated by uniform conditioning (UC) and subsequently updated to localised uniform conditioning (LUC). This paper discusses the implementation of an estimate run using LUC and compares the results based on resource definition drilling to those obtained by close spaced grade control drilling and actual mill production.UC is a nonlinear geostatistical technique designed for recoverable resource estimation, typically using wide spaced exploration and resource definition drilling. The primary output of UC is the grade, tonnage and metal above a series of user-defined cut-off grades for a particular selective mining unit (SMU) block size. The UC approach is considered to provide a more accurate representation of the recoverable grade and tonnage at SMU support for non-zero grade cut-offs than would typically be achieved by a traditional linear estimator such as Ordinary Kriging. LUC is a relatively new approach involving the post-processing of a UC estimate and is used to spatially present the grade distribution predicted by UC at the SMU scale.This study demonstrates that the calculation of a more accurate and realistic grade-tonnage relationship for small SMU sized blocks is possible at the exploration stage using LUC, provided that the necessary theoretical and practical conditions for implementation of this technique exist.CITATION:Millad, M G and Zammit, M, 2014. Implementation of localised uniform conditioning for recoverable resource estimation at the Kipoi Copper Project, Democratic Republic of the Congo, in Proceedings Ninth International Mining Geology Conference 2014 , pp 207–214 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By S Morgan, D J. Bradshaw, S Schwarz

The characterisation of the flotation kinetic response in future mining deposits is important because the flotation response is affected by changes in ore mineralogy. Current methods for characterising the flotation response of different ore types, such as the JK floatability index test (JKFIT) methodology, require at least 10 kg of feed material. In geometallurgical applications, this material is taken from core samples. Core samples are generally obtained using specialised drills and are limited in nature. Thus, it would be beneficial to develop a laboratory technique that required less sample material but still characterised the flotation response of different ore types. The JK mineral separation index (JKMSi) is a small-scale flotation test that requires significantly less feed material (10 g of sample/data point). This study aims to investigate the JKMSi system kinetics and to validate this technique using the JKFIT proven methodology. The JKMSi flotation kinetics were manipulated by varying selected system parameters. The relationship between these parameters and mineral recovery was used to obtain floatability characteristics of the ore. For an ore sample containing chalcopyrite and pyrite, it was found that the chalcopyrite floatability parameters determined from both the JKMSi and JKFIT tests were of the same order of magnitude and the mass fractions of the fast, slow and non-floating components were similar. For pyrite, the floatability parameters were not of the same order of magnitude, but modifications to the test procedure have been identified, which may correct this.CITATION:Morgan, S, Bradshaw, D J and Schwarz, S, 2012. Julius Kruttschnitt Mineral Separation Index - Small-scale test to characterise the flotation response of an ore type, in Proceedings 11th AusIMM Mill OperatorsÆ Conference, pp 159-162 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 29, 2012

Continuous improvement in environmental management assists in the achievement of sustainability goals for the processing of minerals. The use of regular internal environmental audits (scored or unscored) which form an integral component of an Environmental Management System (EMS), provide demonstrable evidence of this improvement. Case studies are presented for a number of major coal mines in the Hunter Valley, where regular internal environmental audits have been undertaken every two to three months, over periods varying from 18 months to five years. Examples of the benefits of improved environmental performance (driven by the audit process) to sustainable development are provided.The auditing process as described here for coal mines, and coal handling and preparation plants, is equally applicable to the processing of other mineral ores, metalliferous mines, quarries, and oil and gas projects.

Jan 1, 2004

The JORC Code contains a mandatory classification system for Mineral Resource and Ore Reserve estimates for public reporting. The classification is a statement of the Competent PersonÆs confidence in the estimate and an attempt to convey that confidence to the various users of the resource estimate. In general the classification process is either largely subjective, relying on the Competent PersonÆs experience, or relies on statistical measures derived from the estimation process, or is derived from an estimated level of confidence in the outcome. However, the statistical measures may not necessarily relate to the overall confidence in the resource or reserve which must take account of the confidence in the geological inputs to the estimation.In addition to the traditional deterministic interpretation and estimations adopted by geologists, semi-quantitative techniques are now available to improve the estimation of confidence while continuing to involve the Competent PersonÆs experience in the process. Methods for quantifying confidence in mineral resource estimates for advanced projects and operating mines have also been developed.Classification is undertaken primarily as a communication tool between the estimators and the other stakeholders in the process. A brief examination of the stakeholdersÆ requirements is included.

Sep 26, 2011

By Muldoon T

Water sprays on mining machines are generally put there to reduce dust; however, research by the Bureau of Mines and others has shown that considerable airflows may also be generated by these sprays. This recognition of water spray-gen- erated air movement led to the "Spray-Fan" - a continuous miner auxiliary ventilation system which was shown to reduce methane peaks by a factor of 15. Recent successes and failures of the Spray Fan are reviewed. More recently, the same principles were used in the design of the "Shearer- Clearer" for reducing dust at longwall shearer operators. The original design was successful; however, a new design is now available which is more practical to install and does a much better job of holding the dust against the face downwind of the shearer. The latest research objective is to eliminate the negative impact of spray- generated air turbulence on continuous miner dust control. Most coal faces in the USA are ventilated in the exhaust mode using "line curtain", and the forward airflow on the side of the heading opposite the curtain is inevitably weak. Air turbulence generated by sprays which are incorrectly located and/or operated at excessive pressures can cause roll back - in which the dust cloud at the face is forced unwind against the ventilation and spreads over the miner cnerator. The general approach to reducing "roll back." is reviewed and art anti-roll back water spray system is presented.

Jan 1, 1983

By A Fowler

The unpredictability of the location, grade and width of narrow-vein deposits presents difficulties for mine geologists and engineers attempting to estimate, schedule, forecast and mine their deposit profitably. This unpredictability stems not only from the grade distribution within a vein, but also the irregularity of vein geometry in three-dimensional (3D) space. Traditional deterministic methods of modelling vein geometry do not account for the inherent variability of the veins, resulting in significant errors when using limited drill hole information. This paper presents a probabilistic method of modelling narrow-vein deposits using sequential gaussian simulation (SGS), which can quantify this variability and improve production forecasts. Vein geometry, thickness and grade are simulated to provide a number of different equi-probable realisations that each honour the drill hole and face sample input statistics. An example is presented from the Augusta narrow-vein Au-Sb mine in central Victoria, where the simulation results are validated against the input data and survey pick-ups of the veins along ore drives.

Aug 22, 2011

Natural gas from the south west Queensland gas fields is now available in north west Queensland to fuel the development of many Carpentaria Mineral Province projects. Like these projects, the south west Queensland gas project, developed under the operatorship of Santos Ltd, has its own æMining CycleÆ. While the project is entering its third expansion phase, it is at the same time actively extending its discovery phase, with large programs of gas exploration and reserves definition. This paper outlines the history of the south west Queensland gas project, with particular emphasis on the relationship of the project to north west Queensland.

Jan 1, 1998

By T Ireland, S Eratne, W Newns, P Spies

The approach to risk management during the procurement of major projects often has a significant outcome on the ultimate delivery of a project. The NZ$1.4 B Waterview Connection project is the largest and most complex project yet undertaken by the New Zealand Transport Agency (NZTA) and the procurement process for an alliance contract was refined to provide compliance with the International Tunnel Insurance Group (ITIG) Code of Practice for Risk Management of Tunnel Works (TCoP). The principle of shared risk within an alliance incentivises a common understanding of project risks prior to finalising the alliance agreement and therefore enables superior risk management through design, construction and beyond. Risk management practices need to be instigated well in advance of commercial phases, so that commercial competition does not lead to a significant elevation of project risk. In particular the practice of gaining commercial advantage by taking on a potentially unmanageable level of risk is one of the outcomes to be avoided by the TCoP.During the procurement phase the NZTA placed high value on design and construction mitigation measures proposed in order to address ground risks, as is appropriate for a major tunnel project. In order to achieve alignment on the level of geotechnical risks an Alliance Geotechnical Baseline Report (AGBR) process was developed.This paper describes the measures taken during the procurement process to achieve certainty with respect to outcomes and minimise project risks whilst also achieving value for money. Refinements to the procurement process to ensure compliance with the TCoP prepared by the International Tunnel Insurance Group (ITIG) are described along with the AGBR process applied as part of a suite of measures to achieve a successful procurement outcome.CITATION:Ireland, T, Spies, P, Eratne, S and Newns, W, 2014. Risk management and use of a geotechnical baseline report for a competitive alliance procurement?process, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 553–562 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By A Reschke

The Thiess John Holland Group is undertaking the design and construction of Brisbane’s Airport Link Project, the largest single investment in transportation infrastructure in Australian history. Twin Herrenknecht TBMs are being used to bore parallel road tunnels from Kalinga Part in Toombul through to Lutwyche, a distance of 2.45 km. At 12.48 m, these tunnel boring machines (TBM) are the largest diameter machines, outside of Japan, to incorporate annular two-component type grouting through the tailskins.Grout design, preparation and injection have been given particular attention in this project in order to push the boundaries of achievement. Laboratory testing was conducted on various mix designs to ensure the contract specifi cations for grout strength could be met. To study the mechanics of the grout injection process, Herrenknecht supplied a test rig which duplicates the grout injection systems on the TBMs. Multiple recipes were tested, carefully selected to balance the requirements of rapid strength development with high mobility (to completely fill the void between the segmental lining and the ground) and minimal bleed.Team Mixing Technologies, Canada, was selected as the grout plant provider based on the technical performance of their high shear colloidal mill mixers. Field results have shown that the colloidal mixer prepared grout gives almost double the strength of an identical grout prepared by a paddle mixer.

Mar 8, 2011

By P Toor

Due to the high energy consumption of milling, it is desirable to improve the efficiency of this process. One alternative to reduce energy and material consumption while optimising production yield in mill operation is through balanced design and selection of liners. Over-design of liners leads to increased life but at a cost to grinding performance, a relationship which to date has not been studied closely. This paper provides a description of this process of liner life cycle optimization and presents initial results from the first of two life cycles being studied for a 32 foot (ft) SAG mill. The use of commercially proven high resolution laser scanning based liner shape information provided by the MillMapper® software correlated with well controlled site surveys at various points in the liner life was used as the basis for comparison. The survey data was modelled in JKSimMet to provide direct comparisons of mill performance. This potentially provides a methodology for the design of liners that maintain a favourable shape for the majority of liner life, yielding desirable production parameters such as lower specific energy consumption and higher throughput, while at the same time maintaining practical liner life cycles.

Aug 8, 2011

By J E. Everett

An essential requirement of product quality control in the mining industry is to be able to reliably predict key quality properties of finished product from the data available before the extraction of the ore. From a production viewpoint, the unit of data collection is generally the input and output data set for each shift of crusher production, but could be any period where mine precrusher data can be reliably matched with product data.This paper demonstrates that linear regression models can be used to predict crush grades from blast grades, even where the crush material is blended from multiple sources or pits for each of which differing regression models might apply. The advantage of using increasingly complex regressions models to match the available data to give increasingly more powerful models is examined. The best model for any application will be a balance between required predictability, available data and the business’ tolerance for complex models.The regression modelling approach has several advantages over the more classic method of run-of-mine (ROM) crusher trials, which will be discussed.The models can use any predictor variable such as grade, geotype and in situ density provided the preextraction data set can be reliably matched with post-crusher data and is significant as a predictor. The models have been used extensively in the generation of the daily crusher plan with the aim of maintaining finished product grade. This approach has also been used associated with exploration drilling and long-term planning.It is acknowledged that there are inherent problems in fitting lump and fines grade to a linear model. However, these problems are minor when they are used for interpolation within the window spanned by the shift blend records used to produce the model. This paper discusses some of the issues limiting linear regression models in this application, and suggests methods enabling consistent models to be formulated

Sep 5, 2011

By L Köresaar, J Moilanen

With lower and increasingly variable Fe grades in iron ore resources, the monitoring of Si, Al, Mg and other light elements to meet quality requirements is gaining importance in the iron ore beneficiation industry. The high cost per manual assay and associated manpower requirements often limit the frequency of shift composite samples and laboratory assays. Furthermore, the shift composite assays represent past performance of a plant but are not useful for immediate reactions to feed variations, detection of equipment malfunctions or process control. Automated online analysis of light elements radically reduces the cost per assay and provides repeatable, timely data for process analysis, control and optimisation.A light element online slurry analyser, based on laser-induced breakdown spectroscopy (LIBS) optical emission technique, will be presented. This paper discusses the analyser design for the iron ore industry and also reviews the performance of the analyser against the manual laboratory. Additionally operator safety, user friendliness and maintenance requirements are discussed.A case study will also be discussed in this paper. The sophisticated measurement technique has been implemented in an industrial automated analyser and sampling system to allow for slurry measurement for up to 12 sampling points. However, careful selection of the sampling points and implementation of the sampling system is required for smooth operation.CITATION:Köresaar, L, Timperi, J and Moilanen, J, 2015. Optimised process control in iron ore via online analysis of light elements, in Proceedings Iron Ore 2015, pp 511–518 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

By K Jupp, T J. Howard

Cliffs Natural Resources Pty Ltd (CNR) operates iron ore mines in the Koolyanobbing region of Western Australia, about 50 km north of the town of Southern Cross. Ore is trucked from three geographically isolated sources to the crusher at Koolyanobbing, where it is blended before and during crushing. Lump and fines products are produced and railed to Esperance for ship loading and export to Asian customers. CNR is examining alternative processing paths, from mining to ship loading, with the aim of improving efficiency and reducing costs. Modifications to the system must be consistent with potential future expansions and maintain the low inter-shipment grade variability on which CNR prides itself and has built a strong relationship with its customers. In searching for the optimum process design, many options from mine face to ship loading must be evaluated and compared. Pilot plant studies are infeasible, while complex mineralogical interactions, competing goals and numerous possible system configurations limit the applicability of theoretical analysis. It was therefore concluded that simulation modeling would provide the confidence to take the next step into production trials. This paper describes techniques applied at CNR to simulate grade variability resulting from potential process design changes. The simulation models are easily run Excel-based modules, with each module representing a different part of the process. The modules use extensive Visual Basic macros driven by Excel's user-friendly interfaces. Presentation of the results is enhanced by Excel's excellent graphical capabilities. The simulation software stores and graphically presents time-stamped data from a run, enabling detailed analysis of different process configurations. Final success of a simulation run is measured by inter-shipment variability (standard deviation and process capability) and in-process ore tonnages. Meaningful results from the simulations require the initial input data contain the same correlations present in the real production environment, between the mineral components, production linkages and across time. The data also have to allow simulation of potential changes to mining method and introduction of new pits into the blend. Mining data from the real operations under study are therefore used, with average grades and variability adjusted to match potential future development proposals. It is also necessary to filter out medium and long-term variations from the production data as this variability is best controlled through the conventional medium to long-term mine planning process, not by the process design being studied. The filtering was carried out using a Fourier transform technique, which is described.

Jan 1, 2009

By I Minniakhmetov, J Ashford

Orebodies constitute naturally occurring, commonly highly variable concentrations of minerals in the earth’s crust formed through varying and highly unpredictable processes. Orebody knowledge is a core foundation of a mining company’s asset base underpinning all decisions about Mineral Resource and Ore Reserves, future production, development and ultimately the profitability and competitiveness of a mining enterprise. The decision to invest in a mineral project is usually based upon a techno-economic evaluation of the project and having clear approval pathways to gain local community support and address social and environmental impacts. The main objective of the techno-economic evaluation is to determine the optimum development sequence for the particular orebody in question and to estimate the economic viability of the project and the future return on investment to its stakeholders, balancing the inherent value of the mineral in the ground against the costs of development and market pricing. With the exception of market-driven commodity prices, virtually all revenue and cost estimates fundamentally stem from the understanding and subsequent modelling of the orebody. A reliable estimate of the ore deposit grade and other geological value-drivers is the foundation upon which the business case for future mine development and operation is intricately dependent. Orebody knowledge is, therefore, the fundamental driver of the mineral project cycle, influencing the progression of studies and consequently, the resource company’s ability to declare Exploration Results, Mineral Resources or Ore Reserves which govern the source and cost of funding available to the project. Drilling provides a ‘vector’ to the true nature of the orebody and effectively buys time to manage the technical risk associated with the orebody. Despite its perceived high cost, in both time and money terms, drilling is the only available technology for acquiring the necessary orebody knowledge to support technical and economic studies and to minimise orebody-driven cash flow uncertainty and volatility. However, like all costs, pressure to minimise drilling budgets is ubiquitous across the minerals industry. Paired with inappropriate key performance indicators, drilling is often regarded as a cost to be minimised, rather than an investment to be optimised. Furthermore, as future deposits get deeper and more complex, the collection of orebody knowledge is increasingly on the critical path for project development. The increasing cost of data collection pertaining to these deposits increases the temptation to minimise orebody knowledge gathering at the cost of long-term value as the reduction or postponement of drilling results in greater orebody knowledge risk at all stages of the value chain. Indeed the true cost of the decision to drill less is rarely known until the mine is in operation, well after the mine project evaluation team has moved on. This paper aims to promote orebody knowledge as the fundamental source of endogenous project financial risk and, consequently, its critical importance in project financial evaluation. Furthermore, the report documents experimental research into the development of an econometric model for valuing orebody knowledge. Using the density of drilling data as a proxy measure of orebody knowledge, the proposed approach integrates well-established stochastic grade modelling techniques with the mathematical mechanics of Decoupled Net Present Value (DNPV) which, combined with stochastic grade modelling (conditional simulation), lends itself to the financial International Mining Geology Conference 2022 | Brisbane, Australia and Online | 22–23 March 2022 3 assessment of orebody knowledge risk. Based on this approach, a metric is formulated, representing the minimum value of the orebody knowledge added by additional drilling

Mar 22, 2022

As near-surface underground mines progress deeper, the inevitable question is whether to convert from truck haulage to shaft hoisting. The desire to defer capital expenditure frequently delays investigation of the shaft option, or deferral of a decision to start shaft sinking, unless the shaft option is clearly significantly better than trucking. By the time increasing depth makes trucking uneconomic, there may then be insufficient resource remaining to justify a shaft, and the mine must close. However, had the shaft been built earlier, its lower operating costs would have permitted the mine to continue to greater depths. This paper presents a methodology for investigating the shaft versus trucks decision. As well as the typical analysis of which option is preferable at the time the analysis is conducted, the process presented illustrates how the timing of the decision to sink a shaft is critical. The paper shows how to identify the latest date at which the decision to sink a shaft can be made, after which time the shaft option will not be economic. It also illustrates how to assess the resource that may be required to justify the shaft. Considering this in conjunction with the latest decision date, implications for the companyÆs exploration program are discussed.

Jan 1, 2005

By P Mugebe, M Yahyaei, M S. Kizil, R Low

This paper seeks to establish an empirical relationship between the impact of mining technological innovation implementation and a company’s market value. The company’s market value is represented by its stock price. In a bid to ascertain the relationship, a stock price prediction model is sought to be established using the firm-specific factors impacted by the implementation of innovative technology. This work is performed under the watch of the prevailing macroeconomic factors. The background anchors in the understanding that the difference between the economic status of a mineral deposit and its uneconomic status lies in the level of mining technological innovation most prevalent at a given time (Hartwick, Olewiler and Preuss, 1986; Wellmer and Scholz, 2017; Wright and Czelusta, 2003). This is derived from productivity improvement, resulting in sustainable profitability due to technological innovation. Unfortunately, there is not an adequately established relationship that links this technological innovation impact to the share price performance of the mineral commodity company.

Sep 1, 2024

By A M. Nyembwe, A M. Garbers-Craig, R Cromarty

With the depletion of high-grade lump iron ore, concentrates have been identified as an alternative material for sinter making. Adding concentrates to the sinter mixture reduces sinter bed porosity and gas flow through the sinter bed. This will result in lower sinter strand productivity. A potential solution to this problem is to add concentrate in the form of micropellets. This study investigates the effect of concentrate and micropellet additions on the permeability of the sinter mixture. Permeability was measured on sinter mixtures containing ten to 40 per cent concentrates and micropellets at various moisture contents. The effect of concentrate and micropellet addition on the permeability–moisture relationship was examined. The results confirmed that the addition of concentrates into the sinter mix decreases the maximum permeability of the sinter bed. The incorporation of micropellets into the sinter mix reduced the permeability less than concentrate addition. The study also showed that the maximum permeability of sinter mixes containing concentrate is reached at the same moisture content as the sinter mixture without concentrate addition. For sinter mixes containing micropellets, additional water must be added to obtain maximum permeability. Parameters including the granule size, void fraction and angle of repose were also investigated to evaluate their effects on the sinter bed permeability.CITATION:Nyembwe, A M, Cromarty, R and Garbers-Craig, A M, 2015. Effect of concentrate and micropellet addition on iron ore sinter bed permeability, in Proceedings Iron Ore 2015, pp 69–76 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 13, 2015

MIM Holdings Limited has acquired a reputation for the successful application of R&D to develop break-through technologies for the mining industry. The Isa Process tank-house technology has been licensed to copper refineries throughout the world, and almost 40 per cent of the worldÆs copper is refined using this technology. Isasmelt copper and lead smelting technology is either in use, or is currently being installed, by eight companies in eight countries around the world. Jameson Cell technology is widely used in the coal mining industry and increasingly in the base-metal industry. The IsaMills developed at Mount Isa and McArthur River made it possible to develop the McArthur River and George Fisher orebodies. This paper will address the need for innovation and then discuss the development of the IsaMill and Isasmelt technologies. It will conclude with some comments about why MIM has been so successful in developing such technologies.

Jan 1, 2002

By M I. Pownceby, M A. Rhamdhani, S Palanisamy, D Fellicia, B Satritama, G A. Brooks, A Ang

Metal production have long been using carbon sources as both reducing agents and energy sources. Consequently, the global extractive metal sector contributes significantly to greenhouse gas emissions, accounting for approximately 9.5 per cent. Hydrogen gas offers as a promising ecofriendly alternative to carbon in metallurgical processes, serving as both a reductant and energy supplier with a by-product being only water vapour. However, the implementation of molecular hydrogen faces certain challenges related to the thermodynamics and kinetics of metal oxide reduction. In addressing these challenges, researchers have explored the application of hydrogen plasma, generated by subjecting molecular hydrogen to high energy to produce atomic, ionic and excited hydrogen species. Hydrogen plasma offers thermodynamic and kinetic advantages over molecular hydrogen and carbon-based reductants, exhibiting lower standard Gibbs free energy of reaction and activation energy. Therefore, hydrogen plasma can produce metal in fewer steps, process any oxide feed and feed size and even be used to refine metals. Despite these advantages, challenges exist in utilising hydrogen plasma in extractive metallurgy, including electricity costs, potential reverse reactions and industrial-scale implementation. This study provides a mini review of prior research on hydrogen plasma for metal oxides reduction, particularly iron oxide, as well as state-of-the-art techniques for its use in extractive metallurgy applications by mentioning several reactor types. Future prospects and scale-up possibilities of the hydrogen plasma in extractive metallurgy will also be presented.

Aug 21, 2024

By J Lea, D C. Kettlewell

The Carina iron ore deposit lies 105 km northeast of Southern Cross, WA. The area designated the Yilgarn Iron Ore Project (YIOP) is comprised of five prospects along an east-southeast trending greenstone belt that extends from the Helena-Aurora Ranges in the northwest to the Yendilberrin Hills in the southeast, over a strike length of approximately 40 km. The YIOP project encompasses the previously identified iron deposits of Bungalbin, Bungalbin East and Mt Walton. The Carina deposit was discovered by Polaris Metals NL in May 2007. The Carina deposit is located within and parallel to the structurally complex northwest trending Mount Dimer shear zone. The volcanosedimentary Archaean-aged greenstone sequence consists of ultramafic and mafic lavas and flows with interbedded sediments dominated by chert and banded iron formation (BIF). Supergene enrichment processes formed a goethite orebody replacement of BIF sequences within a doubly plunging synclinal fold structure. Mineralised outcrops dominated by goethite form a low ridge 1500 m long, up to 90 m wide and drilled to over 200 m in depth. In the vicinity of the Carina deposit, iron occurrences have been identified over at least a 12 km strike length and the exploration potential of the area is identified as 30 - 40 Mt. Polaris Metals began exploration in the area in 2006. Target generation in the area used existing state geological survey maps and regional magnetic survey data to focus on BIF occurrences associated with major structures. Early field investigations resulted in the identification of a large outcrop of predominantly goethite mineralisation at Carina. Detailed geological and structural mapping was completed, followed by close-spaced reverse circulation and diamond drilling. The mineralisation is predominantly goethite with specular and coarse platy haematite localised along structures that cut the goethite mineralisation. Mineralised zones are moderately vuggy and larger cavities occur in proximity to fault zones that transect the orebody. A capping by a thin veneer up to 9 m thick of canga or ferricrete occurs in places. By December 2008, 178 reverse circulation and 11 diamond drill holes (seven surface holes, four tails) were completed. The current JORC-compliant resource estimate is based on assays from 72 RC drill holes and using a 55 per cent Fe cut-off stands as an Inferred Resource of 27.9 Mt at 58.6 per cent Fe, 1.3 per cent Al2O3, 3.7 per cent SiO2, 0.09 per cent P, and 10.1 per cent LOI. Assaying has recently been completed and will be incorporated into a new updated resource later in 2009.

Jan 1, 2009