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By D Roughsedge, J van der Sandt, L van den Berg

Axial flow fans are commonly used as auxiliary fans in underground mines to supply air to development headings. As diesel dilution requirements increase the fans used in conjunction with ventilation bags are becoming larger in diameter to move greater quantities of air over greater development distances. It is not uncommon for mining operations to sometimes use a number of these larger auxiliary fans with high airflow capacity in parallel as primary fans for the operations. These primary fan stations are often considered temporary installations and the fan selection and fan station design is rarely optimised. These temporary installations may become permanent resulting in an inefficient or unreliable primary ventilation system. A recent study looked at the likely causes of multiple primary fan failures at one operation with axial fans installed as primary units where the fan selection and fan station aerodynamic design was far from optimal. This paper explores some of the typical mechanisms of failure such as high pressure stall, unbalanced airflow, and fan tip speed as well as fabrication material. The paper proposes a number of good practise principles that should be considered during the design of a fan station. A second topic covered is the advantages and disadvantages of using different types of fans such as axial, mixed flow and centrifugal units. Here the concept of fan specific speed and its relevance to fan selection is discussed. Finally the paper quantifies the effect of using a high pressure auxiliary fan as a primary fan in a low pressure circuit, which may increase the mineÆs operation cost.CITATION:van der Sandt, J, van den Berg, L and Roughsedge, D, 2013. Practical considerations when using auxiliary axial flow fans as a primary mine fan, in Proceedings The Australian Mine Ventilation Conference , pp 63-70 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 1, 2013

By M J. Gillespie, P D. Erskine

Mine site rehabilitation generally includes the re-shaping of overburden to create a final landform, manipulation of substrates and subsequent revegetation. Due to the wide range of environmental variables that influence rehabilitation progression, having clearly-stated final land-use goals and ongoing significant contributions to the planning process, from prefeasibility through to mine closure, is essential for achieving stable landforms and sustainable rehabilitated communities. Two examples of rehabilitation processes in the phosphate rich region of North West Queensland are used to illustrate some of the possible benefits of early planning and communication of rehabilitation requirements.Approximately 160 km south of Mount Isa, Incitec Pivot Limited operates a 35 year old open cut mine at Phosphate Hill. Monitoring of rehabilitation areas and selected analogue sites is undertaken annually, but the initial landform design, substrate management and species selection has created a difficult environment for revegetated areas to successfully establish. Constant management input (such as weed management, erosion control, supplementary seeding, etc) will, therefore, be required over a long time frame.The second example uses exploratory drilling and historic costean pits at Legend International HoldingÆs Paradise South site, 135 km north of Mount Isa, to determine the success of natural vegetation colonisation on waste rock and compacted soils, and the effects of cattle grazing on recolonisation. This information can be used by planners of the mine life to inform possible end-land use decisions and proposed completion criteria.In a semi-arid environment such as North West Queensland, the creation of a post-mine landscape suitable for nature conservation and/or grazing can be an arduous task. The input from environmental personnel at all stages of the mining process will positively impact upon the quality of the resulting rehabilitation and ensure undesirable legacy issues are minimised.CITATION:Gillespie, M J and Erskine, P D, 2012. Importance of early rehabilitation planning - Case studies from North West Queensland, in Proceedings Life-of-Mine 2012 , pp 187-196 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

This paper introduces a new, safer bulk emulsion loading system for underground mining operations. The features and benefits of the equipment, along with the use of Dyno Nobel Inc patented gassed emulsion technology, is summarised in the application of a stope blast with very difficult and complex ground conditions. The paper describes methods used to optimise the amount of energy required to break the ore while protecting the integrity of the surrounding backfilled pillar.

Jan 1, 2004

By Jones M

The concept of precise, accurate timing with Electronic Delay Detonators (EDDs) was first seriously addressed in the mid-1980s and much was made of the cheapness and profusion of digital watches in terms of the likelihood of EDDs also being cheap and easy to produce. Ten years later, with every major explosives company and many electronics groups having instituted projects to capitalise on the promise of these devices, production devices are still to come into general use. In South Africa, Expert Explosives units have been used in most applications during proving trials and more recently for production blasting in underground ring stoping and open cast coal. The outcome has been valuable learning both as to the benefits and technical requirements for electronic delay blasting, and especially, safety aspects. Examples are shown of production blasts which utilised the power of EDDs. It is evident that it is not delay accuracy alone which determines the value of these systems, but the whole robustness, flexibility and ease of delay allocation when harnessing blast engineering knowledge. Muckpile movement and shape, fragmentation and vibration frequencies have shown to be greatly influenced by designs which can be implemented no other way. The flexibility of a system and the power of the software controlling it are crucial in capitalising on blasting potential, which lies in integrating control of blast timing with other developing electronic Technologies.

Jan 1, 1995

By M Zengerer

The Basil Cu/Co deposit comprises a 26.5 Mt Inferred Resource of copper and cobalt, grading 0.57?per cent Cu and 0.05 per cent Co. It lies in the Harts Range, Central Australia, within the Riddock Amphibolite of the Irindina Province. Analysis of drilling within the mineralised zone of the deposit determined a spatial association between pyrrhotite with high magnetic susceptibility and chalcopyrite, following a strong magnetic trend as determined from airborne geophysics. A study was commissioned to examine if geophysical inversion could predict the distribution of sulfide mineralisation based on pyrrhotite from drill hole intersections, as well as predicting further mineralisation at depth or in the vicinity of the deposit. Petrophysical and geostatistical analysis of drilling susceptibility and mineralisation provided a basis of property distribution inside the model. This was followed by 3D geological modelling of mineralisation based on domain kriging of drill hole susceptibility sensitivity testing of signal to source depth, and distribution was performed using 3D forward modelling. Stochastic inversion generated alternative 3D geological models, which were tested for behaviour and adherence to observed drilling data and geostatistical limitations using GeoModeller software. Predicted mineralisation distribution was compared with conventional geostatistical modelling and found to be in agreement in planar behaviour but exhibiting possibly isoclinally folded trends, with reliability increasing closer to the surface. Predictions of mineralisation at greater depth and beneath weaker anomalies were more diffuse due to small model cell size having limited influence on the signal at depth.The Blackbush uranium deposit comprises a 64.5 Mt Inferred Resource, grading 230 ppm U in the Pirie Basin south of Whyalla, South Australia. It directly overlies the radiogenic Samphire Granite and is considered a tertiary unconformity deposit. Sensitivity modelling was performed using high-resolution ground gravity to see if a deposit signature could be detected using gravity. This required 3D implicit modelling of the geology and mineralisation from drill hole data and characterisation of an associated physical property model using domain kriging in GeoModeller. Density models relied on exploiting an observed relationship between logged density and measured uranium oxide percentage. The residual gravity response of the background geology model identified the location of the uranium deposit. Stochastic inversion of the litho/property 3D model has refined the known distribution of uranium from drilling and provided structural insights into the deposit.These projects have become excellent case studies for exploiting the relationship between mineralisation and potential fields and for testing the applicability of using domain kriging of properties determined from drilling to build robust 3D geological models for stochastic geophysical inversion, leading to robust methods for exploration targeting and mineral deposit prediction.CITATION:Zengerer, M, 2014. Use of geostatistically-constrained potential field inversion and downhole drilling to predict distribution of sulfide and uranium mineralisation, in Proceedings Ninth International Mining Geology Conference 2014 , pp 281–290 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By T Blenkinsop, A Jenkins, H Moore, L Fisher, N Oliver, J Cleverley, M Nugus, J McLellan, J Hill, N Brunacci

The 2 Moz Vogue mineral resource is a recent discovery at the Sunrise Dam gold mine (SDGM), lying approximately 600 m vertically below the Sunrise Dam open pit. Unlike most other lodes, which are dominated either by steep vein sets or shallow high-strain (shear) zones, it lies broadly in the hinge of a folded felsic porphyry body, where it cuts intermediate volcanic lavas and volcaniclastic rocks and is not specifically concentrated at a lithofacies contact. The mineralisation is controlled by a complex interplay of moderate to shallow, west-dipping high-strain zones that are transected by irregular and discontinuous high-grade, north-west-, north–south- and east–west-trending breccia sheets that initially caused problems with attempts to model broad domains. However, by combining the structural controls and styles with the distribution of gold, arsenic, sulfur and antimony, we have improved opportunities for scheduling, extracting and processing the most appropriate material considering the current mining and processing constraints.The early delineation process for the Vogue lode revealed a significant mineral resource for the SDGM, coupled with the recognition of some potentially difficult downstream implications for mining and processing. The ultimate success of mining at Vogue will be a consequence of combining standardised data collection and geological modelling techniques with the results of the novel innovative techniques applied at an early stage of the project.Innovation (in the truest sense) drives change and application to deliver efficient and effective outcomes. Initial data generation and interpretation in lodes above Vogue provided a sound geological model based on strong structural foundations, leading to ideas that could be tested and validated by stress inversion analysis and modelling simulations. Geomechanical modelling simulations, based on the structural analysis, then provided an insight into both the structural and fluid evolution of the system and highlighted target areas. This promoted support for deeper drilling and sampling, which lead to the discovery of Vogue.With additional data, the structural model for Vogue was re-engineered through combination with geochemical and hyperspectral analysis and detailed geological and geostatistical domaining. Initial poor results from metallurgical tests from a small batch sample refocused efforts to undertake mineral and chemical characterisation and profiling (geometallurgy) and combine this data with the composite geological-structural-geochemical model. The result is a conditional probability model for differentiating mineralised or waste domains, with direct outcomes for planning, drilling and mining.CITATION:Nugus, M, Oliver, N, Blenkinsop, T, Hill, J, McLellan, J, Cleverley, J, Fisher, L, Brunacci, N, Moore, H and Jenkins, A, 2014. Exploration and innovation – the discovery and evolution of the 2 Moz Vogue Gold Resource, Sunrise Dam Gold Mine, Western Australia, in Proceedings Ninth International Mining Geology Conference 2014 , pp 323–340 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By B Davis, M Wallace, J Stewart, C F Burrett, J B. Cannell

"An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. The Sepon district in Lao PDR contains 1.8 Mt of JORC (2012) compliant contained Cu resources in addition to >4.5 Moz of Carlin-like Au in a Palaeozoic sedimentary package. The Cu deposits are proximal to an EW lineament of Permian rhyodacite porphyry (RDP) intrusive centres that are characterised by intense barren quartz stockworks. The Khanong deposit (42 Mt at 3.0 per cent Cu mineral inventory) is a carbonate replacement intermediate sulfidation deposit verging on a high sulfidation environment, where abundant pyrite, copper sulfides (chalcopyrite, bornite, trace enargite), copper sulfosalts (including tennantite – tetrahedrite, colusite), and base metal sulfides (sphalerite and galena) have replaced low dipping dolomite and limestone layers, forming a manto-style orebody fed by steep dipping intensely silica-pyrite altered structures. The Thengkham deposits (54 Mt at 1.5 per cent Cu) are composed of prograde skarns (garnet, clinopyroxene) and mineralised retrograde skarns (chlorite, magnetite, hematite, epidote, sericite, talc, serpentine, carbonates, sulfides) which are irregularly and semi-continuously distributed around an elongate 4 km long intrusive centre. Thengkham and Khanong have been strongly supergene enriched, forming secondary chalcocite breccias and exotic malachite zones.The Carlin-like Au deposits display a range of stratigraphic and structural controls and lie outboard of the Cu deposits. Similar structural controls, alteration assemblages and trace mineralogies suggest that gold and copper mineralisation are temporally and genetically related. It is hypothesised that the differences in style of Cu and Au deposits across the Sepon district are related primarily to palaeodepth and proximity to the intrusive centres.CITATION:Cannell, J B, Stewart, J, Williams, P, Wallace, M, Burrett, C F and Davis, B, 2015. The Sepon copper deposits (Laos) and their relation to Carlin-like gold mineralisation, in Proceedings PACRIM 2015 Congress, pp 399–408 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 18, 2015

The introduction of large diameter holes to underground mining has provided the first opportunity to apply near spherical charges in production scale blasts instead of the convent- ional long cylindrical charges generally used in stope and pillar mining. A modified version of the cratering prin- ciple was applied in the blast design in extrac- ting ore across a horizontal area of a stope or pillar. The new rock breaking technique has developed into the Vertical Crater Retreat (VCR) mining system and eliminated raise boring, slot cutting and dilution of the ore by back- fill material. Furthermore it has reduced labour and time requirements thus becoming not only a low cost method of mining but the safest method of underground mining known today. Exceptionally fine muck is provided with a minimum of damage by blasts to walls and re- treating backs of the stope or pillar. The VCR method can also be used for drop- raising, and for the excavation of underground cavities for almost any purpose . The proper explanation of the breakage mechanism of the near spherical charges opposite to the cylindrical charges yet to be found. The mining industry has quickly recognis- ed the value of the VCR mining method which is being adopted by an increasing number of mines

Jan 1, 1978

By D J. Brake

There are many sources of gas in underground mines including development and production blasting, strata gases, spontaneous combustion, diesel equipment, chemicals used for a wide range of functions, welding activities and fires.It is only in relatively recent times that electronic gas monitors (or detectors) have become both safe and affordable for routine use.In modern mines, gas monitors should be in daily use by the ventilation department as well as blasting re-entry (or clearance) crews, and are often used by drilling crews, shift supervisors, hygienists and mine rescue or fire fighting crews.When first released, electronic gas monitors needed to be sent off-site periodically for calibration at a suitable accredited laboratory. Between calibrations, their accuracy was unknown. More recently, ‘bump testing’ and field calibration has become possible on the mine site, improving both reliability and safety as well as reducing the total number of gas monitors that need to be in use.There has been almost an overwhelming increase in the number and sophistication of gas monitor features in recent years. This paper reports on a case study into the key criteria that ventilation practitioners should be aware of with respect to the specification and selection of the most recent gas monitoring systems, and recommends good practice for site-based operation and calibration.CITATION:Brake, D J, 2015. Specification and selection of hand-held gas monitors (detectors) for underground mines, in Proceedings The Australian Mine Ventilation Conference, pp 143–154 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

The extinction of zinc from steelmaking dusts has been studied with a laboratory scale reduction-vapour deposition (RVD) process in the absolute pressure and temperature ranges of 13 - 1300 Pa and 1333 - 1513 K respectively. This process consists of pre-reduction of iron oxide by carbonaceous agent, carbothermic reduction of zinc oxide under reduced pressure to produce zinc deposits and subsequent re-evaporation of the deposits to liquedify the zinc. In the RVD, the gas mixture of Zn and CO quenched from the hot zone is separated into Zn deposit and CO which is transferred to the pumping system. The Zn are a layer of fine metallic zinc powders accumulated on the cold wall and removed to the vacuum distillation chamber. The experimental works have been carried out according to the following items: carbothennic reduction of zinc oxide under vacuum, carbothermic reduction o zinc ferrite under vacuum, and 3. distillation of the Zn deposits. It has been concluded from these experimental results that the recovery of metallic zinc from the EAF dusts is successful by this process, and a new concept for a practical zinc winning process has been proposed.

Jan 1, 1993

Legislation up to the early 1950s prevented the mechanical extraction of pillars. The mines operating at that time had formed extensive areas of pillars. When permission for the mechanical extraction was gazetted, conventional equipment was employed for pillar extraction and generally using hand mining systems. The mid-fifty's saw the of continuous miners. These machines eliminated the disadvantages of conventional equipment and the necessity for multiple working places. Some new layouts for panels emerged; however, actual extraction methods of pillars still followed closely that of hand mining. During the early sixty's the extraction of standing or new formed pillars was undertaken by the "open-end lift" or a "split and lift" method.

Jan 1, 1974

By D McInnes

Rather than look at the problems associated with sampling, this paper deals with the issue of sampling and blending to optimise revenue û predominantly in the mining industry. An example of the use of this methodology in the agriculture industry is also presented. Mining companies, in particular, are experiencing a boom in commodity prices and many believe the industry is in the middle of a æsuper cycleÆ. Production levels are being escalated dramatically to meet the demand coming from China and India. This in turn has further stretched the capacity of our rail and port infrastructure û resulting in significant shipping queues around most Australian commercial ports and increased demurrage costs for the producers. Mining companies are now looking for effective scheduling, planning and blending to maximise production and reduce demurrage charges û given the current infrastructure constraints. Mining companies can no longer use spreadsheets to run their business. This paper further looks at how these outcomes can be met by optimised blending using an integrated supply chain management system such as MineTrak together with effective sampling and analysis.

Jan 1, 2005

The exposed high face of Kerr's Quarry has dominated the township of Ferntree Gully for half a century. The near perpendicular face of bare dacite rock is a crumbling scar in an area of significant natural beauty. Apart from being unsightly, the face is a hazard for any person who approaches too close to its base or to the top edge. The height and the precipitous nature of this man made wall of rock is hazardous indeed. (fig. 1) The rock face is on the municipal boundary between the Shire of Sherbrooke and the City of Knox. This boundary was drawn when partition of the Shire of Ferntree Gully took place. There are many advantages in benching back the wall of the quarry but to do so the operation, located in Knox would need to extend into Sherbrooke. There are planning difficulties involved in such a manoeuvre, but during 1972, at a meeting of Cabinet Ministers, it was agreed that the matter be resolved.

Jan 1, 1976

By S Hapugoda, J R. Manuel, X Cao, B D. McDonald, N A. Ware, L Lu

Roy Hill is a large iron ore mining, processing, railing and port operation in the Pilbara region of Western Australia. Since delivering its first shipments to customers in December 2015, Roy Hill has quickly achieved a 60 Mtpa production rate of lump and fines products. The process plant, principally consisting of wet scrubbing, screening and de-sanding unit processes, was expanded from early 2020 to include operation of a Wet High Intensity Magnetic Separation (WHIMS) Plant. The WHIMS Plant treats tailings to recover approximately 4 Mtpa of ultra-fine (nominally -150 μm) high-grade hematitic concentrate which, after dewatering, is blended into the fines product. Unlike typical hematite concentrates, which consist largely of dense particles with smooth surfaces, the WHIMS concentrate is characterised by very finely microporous hematitic/goethitic particles, reflecting the overall characteristics of the Roy Hill deposit. Detailed test work has been conducted in collaboration with CSIRO to characterise the WHIMS concentrate in terms of its physical and mineralogical properties, and to determine its influence on the granulation and sintering performance of Roy Hill fines – from fundamental/lab-scale and sinterpot perspectives. The results demonstrate that blending of the high-grade hematitic Roy Hill WHIMS concentrate into the fines product can maintain overall sinter quality and positively influence granulation and sinter melt formation, as well as Fe grade.

Nov 8, 2021

By M K. Nahian, R G. Reddy

The thermodynamic model for species distribution in aluminium chloride (AlCl3) and 1-butyl-3- methylimidazolium chloride (BMIC) system was developed. The experimental thermodynamic data, considering a range of aluminium chloride species, such as AlCl4-, Al2Cl7-, Al3Cl10-, Al4Cl13-, and Al2Cl6 were used in developing the model. When the XAlCl3 was in the range of 0 to 0.50, only anion species Cl- and AlCl4- were existing in the solution. As the XAlCl3 value increased more than 0.50, the available anions were Al2Cl7-, Al3Cl10-, Al4Cl13-, and Al2Cl6. Specifically, the concentration of Al2Cl7- increased in the composition range from 0.50 to 0.67 XAlCl3, after which it decreased. This change in the concentration of Al2Cl7- was due to its reaction with excess AlCl3, leading to the formation of Al3Cl10-. The average cathode current density was determined by the electrochemical experiments varying XAlCl3 from 0.50 to 0.71 in the AlCl3:BMIC solutions. The average cathode current density increased as the XAlCl3 increased from 0.50 to 0.67. However, it decreased when the XAlCl3 > 0.67. This trend can be attributed to the electroactive species Al2Cl7-. The Al2Cl7- promotes the reduction rate at the cathode, resulting in an increase in the average cathode current density.

Aug 21, 2024

As this district is so far distant from the other mining centres and its mode of approach so circuitous, I am afraid that many residents of other portions of the Commonwealth never think of paying this" Australia's Silver City" a visit, to learn personally the many and various lessons everywhere available, and to become familiar with the really wonderful and interesting features and deposits (which pature has so lavishly bestowed in the mineralogical world) yet seemed to almost ignore or overlook when disposing of topogr,aphical beauties of landscape and vegetation) unless professional or business duties require their presence here. So it is to those whose life is necessarily spent in other parts of the States where they answer their call of duty, and yet feel an interest, either for business or other reasons, that my paper is specially addressed and prepared, and for that reason I witl endeavour to make my remarks more of an explanatory than a dictatorial nature. I feel sure that there. are many members of our Institute who are much more familiar, and have had many more years' experience in the various methods of timbering, filling, and ore extraction, etc., than myself, but I hope that over I6 years' experience in connection with mines and engineering works, the last six of which have been spent in Broken Hill, where, I have been very closely connected.

Jan 1, 1903

By Finlayson E, Hilyard D, Francis G

Papua New Guinea's mainland is dominated by a foreland thrust belt, which can be divided into two zones. The "body" zone is floored by Palaeozoic granites and metamorphics of the Fly Platform (Tasman Orogen). Underlying the "tail" zone is Papuan Plateau, rifted from the Tasman Orogen during Coral Sea spreading, and believed to underlie the Papuan Peninsula and Papuan Islands region (D'Entrecasteaux, Woodlark, Misima, Sudest, and Rossel Islands). Thrusting began in the Miocene and continues today in the crust below the "body" zone. The youngest known thrusted rocks in the "tail" zone are Pliocene in age. Recognition of foreland thrusting has major implications for petroleum prospectivity of the Papuan and North New Guinea Basins, mineral exploration prospectivity, and geological terrane identification in PNG.

Jan 1, 1987

By Chaturvedula V. K

Pillar extraction carried out using various methods (split and lift, Wongawilli and Old Ben) involves the formation of narrow fenders (commonly 7 m of coal) formed by driving "splits" for lifting off with a continuous miner. The strata above a split and fender adjacent to the goaf consists of a cantilever beam (usually >3 m thick) that extends from the solid coal and bridges across the fender. Lifting off the fender from the split in safe conditions depends upon the bridging capability of the cantilever and the fender strength. The nature and competence of the immediate and near roof, the support capability of the coal fender and the presence of faults and or joints can adversely affect the bridging behaviour of the cantilever. Insufficient knowledge of these parameters can lead to extraction under dangerous conditions. Remnants of fenders ("stooks") also support the cantilever and their dimensions are critical to obtain regular caving and goaf falls. Stook area, goaf roof span and roof stand-up time after lifting can be related and only a relatively small increase in stook area of 10-15 m2 can lead to a significantly increased stand-up time, especially under a massive roof. Such conditions strongly influence the re- distribution of abutment stresses and can create increased outbye pillar loading. Based on detailed underground geotechnical investigations, it is concluded that strata caveability, roof cantilever behaviour, fender H:W ratio and remnant stook size are all critical parameters for successful and safe pillar extraction.

Jan 1, 1992

By O Salisbury

Ingress of air into the longwall goaf environment needs to be managed appropriately to reduce the risk of creating a spontaneous combustion event. The maingate goaf edge is an area of particular concern in this respect, as air often penetrates for some distance into the goaf along this region inbye of the longwall face. Since the flow rate in this part of the goaf is also quite low, an opportunity exists to disrupt the air pathway by implementing a barrier to the airflow. Previous attempts using plugs made from an assortment of materials have resulted in varying degrees of success. More recently, Narrabri Coal Operations (NCO) has introduced the use of a chemical foam that is mixed with nitrogen to produce a standing barrier with the consistency of shaving cream. The implementation of this practice has consistently proven to be very effective for reducing the oxygen concentration along the maingate goaf edge by systematically retreating the foaming unit with the longwall. This paper presents how the foam is applied in the underground goaf environment to prevent oxygen ingress and uses results from gas monitoring to confirm the foam effectiveness.

Oct 12, 2022

Standards in the public reporting of resources and reserves in Australia have dramatically improved since the implementation of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (The JORC Code) in 1989. Whilst the JORC Code states clearly that Mineral Resources and Ore Reserves are imprecise calculations and should be treated as estimates, there is strong evidence that many people regard them as fact, including some accountants, directors, auditors and investors. Mineral Resources and Ore Reserves are key inputs in the valuation of a mining company and the determination of financial performance. Geological knowledge is the foundation upon which Mineral Resources, Ore Reserves and investment decisions are made, however this information carries with it substantial uncertainty. Case studies and company reports have established that errors derived from inadequate geological inputs have led to reduced profitability in operating mines and in extreme cases the premature closure of mine operations. Whilst there are many causes of mine closure and reduced profitability, including commodity prices and exchange rates, the cumulative effect of all geological uncertainty contributes significantly to the erosion of the credibility of mining within the investment community. There are a number of methods used to characterise and model uncertainty in Mineral Resource and Ore Reserve estimation. Empirical mining indexes, sensitivity analyses, Monte Carlo simulations and Conditional simulations are used to identify and estimate geological uncertainty, notably the quantification of uncertainty in grade and tonnage estimates. These techniques have not generally been applied to estimating geological uncertainty associated with key Ore Reserve inputs such as appropriate mining technique, equipment selection, production rate, mining dilution, stability requirements, materials handling, metallurgical processing, product quality and waste storage. New software tools are needed to model the entire mining process with all its geological and other interdependencies, enabling all uncertainties to be separately identified and estimated. By its very nature, mining involves the assumption of significant technical, financial, political, environmental and social risk. Success comes by understanding and managing these risks and consequently the mining industry will never choose to reduce the level of geological uncertainty to nil. The ultimate aim of improved identification and estimation of geological uncertainty is to quantify inputs into the Ore Reserve process, allowing a company to assess the risks and manage these accordingly. This approach is relevant to feasibility studies for new projects as well as life-of-mine planning through to the weekly schedule at existing mines.

Jan 1, 2003