Search Documents

By Muhammad Zaka Emad

Cemented rockfill (CRF) is a mixture of rock aggregate and binder slurry. It is a stiff backfill, it is fast curing, its operation is simple, placement rate is reasonably high and no drainage is required. The main demerit of CRF is failure of exposed faces causing ore dilution, which can be associated with the fill placement method. This paper discusses the effects of two placement methods being practiced by mines and numerical modelling is used as a tool to evaluate stability of the backfill column. In the first method, practiced in longitudinal retreat mining of a narrow vein deposit, the rockfill is hauled and dumped into the stope with a LHD scooptram. Once dumped, cement slurry is sprayed into the stope. In the second method, a raise situated centrally above the mined stope is used to convey already mixed CRF into the stope. Stopes are mined out transversely in primary and secondary blocks in a sublevel stoping system. Problems of poor mixing in combination with both placement methods are discussed. The two backfill placement methods are analyzed for blast induced vibration damage using the dynamic Flac3D modelling technique accounting for rock mass and fill damping characteristics, and a pressure wave is used to simulate the blast vibrations. Fill heterogeneity has also been considered for the two cases and results are compared.

Jun 1, 2012

By F Hungerford

"In-seam drilling has been undertaken for the past 30 years for gas drainage to reduce the risk ofoutburst and lower the concentrations of seam gas in the underground ventilation. The drillingpractices have reflected the standards of the times and have evolved with the development oftechnology and equipment and the needs to provide a safe environment underground. Earlypractice was to adapt equipment from other fields, but with changing emphasis, research anddevelopment by the coal industry has created specifi c equipment, technology and practices toaccurately place in-seam boreholes to provide efficient and effective gas drainage."

Jun 1, 2012

By Hamidreza Soltanzadeh

The injection of CO2 into a reservoir or aquifer can potentially result in deformation, induced fracturing and fault reactivation in the injection zone and/or the rocks that surround it. This paper reviews the data collection and geomechanical analyses performed to assess these potential hazards for the Heartland Area Redwater Project (HARP), in which CO2 sequestration is being considered in a carbonate (Leduc Formation) reef. A three-dimensional mechanical earth model (3D MEM) was developed using available geophysical log data from several wells. The geomechanical response to CO2 injection was studied using a finite element numerical model based on the 3D MEM and pore pressure distributions predicted using a reservoir simulator. The modeling results suggest that the potential for induced fracturing and fault reactivation is low and the maximum predicted ground surface heave is less than 2 cm. Sensitivity analyses conducted with a 2D geomechanical model that was extracted from the 3D model confirm that this conclusion holds true even when a reasonable measure of uncertainty in rock mechanical properties, ambient pore pressures and horizontal stress magnitudes is accounted for.

Jun 1, 2012

By Kathy S. Kalenchuk

Damages have been observed in shafts, backfill infrastructure and the slick line at the Leeville Mine. Shaft damage (shearing and spalling of the concrete liner) is attributed to mine-induced rock mass deformations concentrated where regional faults intersect the shafts. Aggregate bin, mixer station and conveyor drive damage (shotcrete shearing, heave of concrete floor slabs and bending of a vertical steel beams) is attributed to rock mass squeezing induced by elevated magnitudes of the vertically orientated major principal stresses. Separation of the slick line has occurred do to extension of the stressshadowed rock mass immediately above the mined out areas. Three-dimensional numerical models have been developed and calibrated to simulated rock mass deformations with magnitudes similar to those believed to have produced the observed damages. By stepping through the mine sequence, models reproduce deformations at the same mining stage as when damage has occurred. Calibrated models have been used to forward project further damage over the remaining mine life.

Jun 1, 2012

By Karina Forster

Open stope design depends on the ore body geometry, loading conditions and rock mass properties to estimate stope dilution and ground support requirements. Rock mass conditions for design primarily rely upon estimates of well established rock classification systems. Many sources of data exist for obtaining estimates for these rock mass classification values which include core logging, geotechnical mapping, geological mapping as well as linking one classification system to another through the use of empirically derived equations. The extent of mapping coverage can also vary significantly based on the data collection technique. This paper proposes an approach where individual components of rock mass classification systems are collected by the different available data collection techniques. Data from different rock types are also considered separately based on their alteration characteristics and general observation products. Data from the Cameco Corporation Eagle Point Mine is presented and an approach is outlined for obtaining average representative classification values for stope hanging wall characterization. The effectiveness of this approach is demonstrated through the analysis of a data base of hanging wall dilution information.

Jun 1, 2012

By M Ogle

"Booster fans are relatively rare in Australian coal mines. However, as mines become progressivelydeeper it is likely that such fans will be increasingly adopted as a method to sustain or improve the ventilation of underground workings. The reasons why booster fans may be an att ractive alternative include: increased cost of sinking additional ventilation shafts with greater seam depths; environmental objections to shaft sinking projects; and increasing urbanisation and surface constraints limiting availability of potential ventilation shaft sites. As Tahmoor Colliery movedinto its northern lease the ventilation constraints became the limiting factor on production. Thelimitations of the old workings meant that the existing ventilation system would be inadequateto sustain the required production. Extensive ventilation modelling was carried out to evaluatevarious potential solutions and the recommended option was the installation of a booster fanor fans, to gain underground access to an already approved shaft site in the northern lease.Proposals were sought from recognised fan manufacturers and various alternative arrangements were tendered. Ultimately the choice was between one large centrifugal fan and a set (three or four) of smaller æauxiliary-likeÆ fans in parallel. The successful tender was for a single centrifugal, an arrangement very similar to the booster fans that have been operating eff ectively at Westcliff Colliery for a number of years. This paper describes the current ventilation network, evaluation of the ventilation options, the fan selection process, and the project status to date."

Jun 1, 2012

By Will S. Pettitt

Fracture Network Engineering (FNE) is the engineering design of rock mass disturbance through the use of advanced techniques to model fractured rock masses numerically, and then correlate field observations with simulated fractures generated within the models. Microseismic (MS) monitoring is a standard tool for evaluating the geometry and evolution of the fracture network induced during a hydraulic treatment, principally by source locating MS hypocenters and visualizing these with respect to the treatment volume and infrastructure (Figure 1). The integrated use of Synthetic Rock Mass (SRM) modeling of the hydrofracturing with Enhanced Microseismic Analysis (EMA) provides a feedback loop in which the SRM is constrained by the information provided by the MS data and the in-situ behavior of the fracture network is better understood, leading to informed decisions on future field operations. This paper discusses the technologies used in FNE and some of the developmental challenges we face in order to provide a more efficient and robust application of the approach. One particular challenge is the accurate representation of MS source data within the models (locations, magnitudes and mechanisms), and the ability to correlate these data effectively with field results. This challenge is being overcome by the development of more efficient numerical modeling algorithms, providing simulations in three dimensions at reservoir scale, combined with validation of these algorithms using laboratory and field case studies.

Jun 1, 2012

By Ciro Manolo Alegre Huamán

El presente texto describe la metodología para el desarrollo del planeamiento de minado subterráneo a través del software minero y de técnicas matemáticas modernas. Así también es importante la base de datos geológica que servirá como soporte para generar los modelos geológicos y geotécnicos a partir de los cuales, se obtiene el modelo de recursos mineros y, consecuentemente, las reservas mineras, que es donde se soporta el planeamiento de minado para una operación minera subterránea.

Jun 1, 2012

By J Rowland

"This paper was primarily put together in order to demonstrate what are believed to be acceptablestandards, in relation to ventilation surveys and the subsequent model assembly process. Thiswas brought about by the fact that in many parts of the world it is regarded as acceptable to carryout ventilation surveys and then build and supply the client with a æstick fi gureÆ type ventilationmodel. Such stick models have arguably litt le use and a very short life span in the real world and isalmost impossible for site staff to maintain. Thankfully most underground coal mines in Australia strive to maintain a true replica model of their ventilation circuits and to keep them in a relatively good state. Given that these mines own and maintain the models, it is often seen as necessary to update or rebuild them. The level of survey detail required to do so is totally dependent on the end use of the data and the criticality of the accuracy of the data set, to the ongoing safety and viability of the business. Mine technical personnel should think clearly about the use and importance of the ventilation survey and subsequent report outputs required that will help them bett er understand their mines and bett er prepare them to manage their ventilation circuits, on an ongoing basis. This paper provides some guidance for Australian ventilation engineers so they may plan and execute this work æin houseÆ, should they rightly choose to do so. To this end, methods of data collection and circuit analysis required for surveys of a high order of accuracy are detailed. Also, some of the issues which are important when formulating a strategy to carry out the appropriate ventilation survey for the required purpose are summarised. As well, the major details that should be furnished within any survey and some survey/report outputs and/or omissions, which are clearly not acceptable, are highlighted."

Jun 1, 2012

By Erik C. Westman

Knowledge of the orientation and relative magnitude of in-situ stresses at the mine scale is important for safe and efficient production from an underground mine. With this knowledge, stope location and scheduling can be optimized. Passive seismic tomography was used for imaging horizontal stress distribution at the mine scale. Microseismic measurements from the Creighton mine were used as input for the tomography calculations. The double-difference tomography algorithm was used, which provides the most precise results. The results clearly show a low velocity zone in the previously mined areas bounded by two high-velocity lobes located adjacent to the mined openings at locations consistent with those expected due to the horizontal stresses at the mine. The overarching goal of the research is to provide a tool that can augment both numerical modeling results and underground geotechnical measurements to allow the mine operator to produce in the safest and most efficient manner possible.

Jun 1, 2012

By A. K. Alzo?ubi

Block toppling in natural rock slopes has been under investigation since the 1970?s. De Freitas and Watters (1973) introduced the term ?toppling? to describe the movements of rock slopes by rotation in steeply dipping beds. The Lornex pit case history from British Columbia (Canada) was chosen to study the effect of mining on the stability of toppling rock slopes. A discrete element approach that allows fracturing of intact material was applied successfully to model the composite rock slide-rock topple movement. Three main movement modes were observed in the field and the numerical model; the sliding of the top of the slope exposed normal scarps, the toppling at the middle part of the slope exposed obsequent scarps facing opposite to the slope face, and dilation of the rock caused by fracturing at the toe formed loose material. The development of the rupture surface at the toe of the slope was traced and did not evolve into a continuous rupture surface throughout the slope both in the field and the numerical simulation. Good agreement was achieved between the deformations recorded in the field and the numerical simulation.

Jun 1, 2012

By Jaime Meléndez Martínez

Recent interest in unconventional reservoirs motivates our work in laboratory measurements of seismic anisotropy. Seismic anisotropy is the variation in speed of a wave as a function of its direction of propagation. Analyzing anisotropy in unconventional reservoirs is important since anisotropy leads, for example, to differential stresses upon loading and could affect hydraulic stimulation (Reinicke et al., 2010, Zimmermann and Reinicke, 2009); in this sense, laboratory measurements are an important tool to study seismic anisotropy at small scales which can aid in the characterization of larger formations. The purpose of this work is to describe the laboratory methodology used to simultaneously measure ultrasonic P and S-waves in three different directions from a single core sample. Elastic anisotropy of a Proterozoic sedimentary rock from south-west Alberta is investigated. In metamorphic rocks seismic anisotropy is caused by preferred mineralogical alignment or foliation. Assuming a transversally isotropic medium, arrays of compressional and shear piezoelectric ceramic transducers were mounted on a sample trimmed from a core to measure travel times of ultrasonic P-waves and S-waves as a function of confining pressure at directions perpendicular, parallel, and oblique to the plane of foliation (bedding). Results show strong anisotropy agreeing with the assumption of a transversely isotropic medium. Dependence of travel times and hysteresis effects can be observed when pressurizing and depressurizing.

Jun 1, 2012

By Gregory C. More O'Ferrall

Generally pillars in the Southern African hard rock tabular underground mining environment are designed using either empirical pillar design formulae or numerical modelling (analytical) methods utilizing the Hoek-Brown failure criterion. However, none of the pillar design methodologies employed takes cognizance of weak layers either within the pillar material or in the immediate foundation of the pillar. Over the past few years, the presence of a weak layer either within the pillar material or within the immediate foundation of the pillar has resulted in the closure of one platinum mine (Everest Mine), closure of one chrome mine (Wonderkop Chrome) and large-scale instability in a couple of chrome and platinum mines in South Africa and Zimbabwe. A study has been initiated to better understand the failure mode and strengths of the pillars where pillar failure associated with weak layers occurred. Owing to the infancy of the study into the failed pillar strength and failure mechanism, the purpose of this paper is to highlight the circumstances that led to the collapse of mining sections and a shaft, and the difficulty associated with designing pillars in the Southern African chrome and platinum mining operations.

Jun 1, 2012

By P Guj, J A. Bell

The valuation of early-stage exploration projects requires a valuer to take into account a large number of uncertain value drivers, the interplay among which may be non-linear. This paper examines some of the key value drivers including geology, target metrics, project area and maturity, the market and the psychology behind the decision-making process. The commonly accepted valuation methods and their underlying logic are outlined, including a view on why they evolved, what value drivers they attempt to address and their potential shortcomings. These methods include the multiple of exploration expenditure, geoscience rating, expected values and market based methods. The potential future valuation methods of replacement values and neural networks are also introduced along with how to minimise heuristic bias and error within the market-based approach.CITATION:Bell, J A and Guj, P, 2012. Exploration value drivers and methodologies, in Proceedings Project Evaluation 2012 , pp 17-28 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By B Maybee, L Fava, D Millar

In the context of a case study for an underground gold mine, the value generated by a schedule optimisation tool (SOT) is assessed. SOT is a software tool for underground mine planning that maximises the net present value (NPV) of a development and production schedule. A baseline study measures the NPV of a schedule generated by SOT from a sequence prepared by the site mine planners. Operational resource constraints and precedence constraints are adhered to by the schedule and NPV is evaluated with a financial model including revenues, costs and discount rate, as specified by the mine planner.The case study has several facets in addition to the baselining component. Scenarios were conducted that examined the degree of constraint on operational resources, the projected gold price and unit costs. Life-of-mine schedules subject to optimisation using SOT allowed for equitable comparisons.Haulage was identified as a dominant constraint for the mine. It was one of six operational resources that were used to constrain the optimisation of the mine schedule, with alternative levels for some of these constraints being identified so that their effects on the NPV could be studied. Alternative price projections for gold and different cost projections were identified and their effects on the optimised schedule examined. Price and cost scenarios that brought additional economic material into the schedule at various times in the mine life were considered in comparison to a scenario that assumed no additional economic material would become available.This case study illustrated that the use of a schedule optimisation tool to optimise mine schedules provides mine planners with an ability to perform a wide variety of analyses in a relatively short period of time. Such tools thereby support strategic decision-making that can add significant value to an orebody.The case study demonstrates that by fixing the set of development and production activities to be carried out before optimising the life-of-mine schedule, the mine planners can inadvertently set up a situation where the NPV would be progressively eroded in the last several years of the mine life. This clearly illustrates the need for schedule optimisation to be integrated with life-of-mine planning.CITATION:Fava, L, Maybee, B and Millar, D, 2012. Decision support for an underground gold mining operation - A case study using the schedule optimisation tool, in Proceedings Project Evaluation 2012 , pp 41-48 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By P Myers, T Elkington, S Wonday

Sierra Rutile LimitedÆs (SRL) heavy mineral sand mining operation in Sierra Leone, West Africa, is embarking on a new phase of its life. After confronting many challenges during the 1990s and 2000s, SRL is embarking on a strategy of growth to recover maximum value from the mine over the rest of its life. Sophisticated linear programming techniques have been used to develop an optimum strategy for extracting SRLÆs many known deposits of economic grade, while considering options for expansion and for a variety of mining and processing methods and combinations. CITATION:Myers, P, Elkington, T and Wonday, S, 2012. Strategic optimisation at Sierra Rutile - A case study in maximising project value, in Proceedings Project Evaluation 2012 , pp 59-66 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By S Watson, L Martinez

Mine projects are complex opportunities that demand a constant assessment of uncertainty, ie risk and upside potential. This is because the value of a mine project is typically influenced by many underlying economic and physical uncertainties, such as metal/mineral prices, metal/mineral grades, costs, schedules, quantities, and environmental issues, amongst others, which are not known with much certainty at the beginning of the project. But, is uncertainty an enemy or an ally of the mine planner/analyst? To answer this question, this paper first assesses and elaborates upon the general concept of uncertainty. It then looks at the different sources of uncertainty in a mining project, such as the orebody, costs and product price uncertainties, and their effect on the final project value. Next, a general?review?of current mine evaluation techniques highlighting their limitations when dealing with uncertainty is made. Finally, an extended evaluation and risk management framework that addresses the existing uncertainty in the (greenfield/brownfield) mine evaluation process is proposed. One important characteristic of this framework is that it uses and manages uncertainty in order to generate additional value to the project; this is done through operational and managerial flexibility, which allow mine planners to minimise/maximise project risk/upside-potential giving a more realistic estimate of the projectÆs market value - this is shown in practical and simple examples occurring at different stages of a mine project, such as exploration and operation. Final conclusions are provided at the end.CITATION:Martinez, L and Watson, S, 2012. Uncertainty - An important source of (additional) value for mine projects, in Proceedings Project Evaluation 2012 , pp 131-140 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

Risk management has become an essential tool for mining companies to ensure their projects are well-managed and profit expectations are achieved. Risk management has also become a mandatory corporate governance requirement in Australia for publicly listed companies and equally important to attract investors. This paper provides a brief overview of the essential tools needed to implement a practical risk management framework to comply with the internationally recognised ISO 31000:2009 risk management-principles and guidelines from the perspective of small or soon to be producing mining companies. To?successfully?deal with the unknown and to manage the opportunities and risks involved with a mining project requires a clear understanding of the basic risk management principles. These include how to develop a project risk register, how to develop a project risk treatment plan and how to manage and monitor project risks to take full advantage of the opportunities presented.The first step is to identify and fully appreciate the risks that face a mining project. There are many risk identification methods that can be used including checklists, brainstorming and hazard and operability (HAZOP) studies. These often lead to a telephone book full of risks which are near to impossible to manage. A risk library specifically designed?for mining?projects containing no more than 100 risks will cover the major showstoppers, is practical and can be readily implemented and successfully managed.A risk framework also needs to be established which is compatible with the companyÆs structure and objectives. Once each risk has been assessed in regard to consequence and likelihood and the risk control systems are in place they need to be assigned to the responsible manager. The extreme or high risks will require a risk treatment plan to be developed. Risks will change during the life cycle of a mining project. Hence, a reliable monitoring system is also required for compliance.CITATION:Jones, J A, 2012. Mine project risk management, in Proceedings Project Evaluation 2012 , pp 117-122 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By J Gould, T Elkington

Mine operation strategies are commonly optimised with a net present value (NPV) maximisation objective. There are well known properties of a typical mining project optimised for NPV, including high production rates and declining cut-off grade schedules. In practice, however, frequently there are operations that diverge from such NPV-maximising properties. Although a range of reasons for this can be at play, one possible explanation is that operators intuitively adjust their strategies to compensate for the flaws inherent to NPV maximisation. In particular, NPV analysis does not reflect the benefits of managerial flexibility inherent in a mining plan. Real options valuation (ROV) is an alternative approach that addresses this issue. We compare the properties of NPV and ROV optimisation solutions generated for the same scenario. Our simple case study demonstrates that the presence of real operating options in the optimisation model not only entails increased project value as expected, but also tends to encourage lower processing capacity (with lower associated capital cost), higher cut-off grades and greater use of stockpiles.CITATION:Elkington, T and Gould, J, 2012. Real option value optimisation, in Proceedings Project Evaluation 2012 , pp 35-40 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012