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LKAB operates two underground mines in Kiruna and Malmberget, Sweden. Blast furnace pellet is the main product and makes up 70 per cent of total production. The orebodies are hosted by 1910 - 1860 Ma old volcanic rocks. The host rocks and the ores were affected by the Svecokarelian orogeny for 1890 - 1860 Ma ago. The deposit belongs to the Kiruna type apatite-rich iron ore. Magnetite is the main ore mineral but haematite is the dominant ore mineral in some orebodies in the western part of the deposit. Large-scale sublevel caving is the dominant mining method. Three main haulage levels are in operation at present. The ore boundaries and quality can be detected by geophysical logging resulting in reduced waste dilution and subsequent grade reduction. The susceptibility measurements have been used in the magnetite ore since 1991 and gamma-gamma measurements in the haematite ore since 1998. The mining scale has increased during the last 20 years but diamond drilling has remained at approximately 18 000 drilling metres per year. Uncertainties in the ore constructions can lead to unexpected cost increases, ore loss and dilution. The ore boundaries are evaluated with percussion drill holes using in-hole geophysics to achieve satisfactory geological knowledge. The probes are calibrated in all currently mined orebodies. The correlation between core sample assays and measured susceptibility and gamma-gamma values is strong. The cost to determine the ore boundary by percussion drilling with in-hole geophysics is two-thirds lower, and productivity is six times higher compared to diamond drilling. The measurements are made by geotechnicians and the interpretations by a geologist. The results are transferred to a database and presented three dimensionally as holes with iron grade intervals on mine maps. The interpreted holes are used by the geologist in various ways in the geological modelling. Layout planning uses the measurements as a tool to place the drifts at the correct distance from the ore contact especially in the longitudinal sublevel caving and the production hole planning to optimise the final length of the cross-cuts and drifts for best ore recovery.

Jan 1, 2006

By P Luo, J E. Danoczi, P Nakutnyy

Sensor-based sorting methods to remove waste or for upgrading ore prior to downstream metallurgical processing is becoming more prevalent for mining operations. X-ray transmission (XRT) sorters are a popular choice for mineral processing plants since they can sort a wide variety of minerals. XRT sorters pass high intensity X-rays through particles to generate images of varying greyscale, based on their effective atomic density. The ore sorter then mechanically separates the particles using algorithms based on the images. A popular test currently used to evaluate the amenability of the ore to XRT sorting is to pass the particles through the sorter and obtain the greyscale images showing mineralogical differences. This test provides information on the mineralogical heterogeneity between ore particles for their separation. However, it does not provide an understanding of the actual mineralogical composition of the ore or information pertaining to which other minerals may respond in a similar manner, nor does it provide liberation information. This paper describes a test that combines high resolution X-ray micro Computer Tomography (CT) combined with QEMScan to obtain information about amenability of ore to XRT sorting and to obtain valuable information that can streamline metallurgical testwork programs. This test also provides information relating to particle thickness and associated X-ray attenuation coefficients, desired mineral presence and mineralogical information relating to associated minerals and clays to assist with developing sorting algorithms. Combining the CT and QEMScan can address many limitations of the current method to determine whether XRT sorting technology is appropriate for particular ores. Mineralogy information from QEMScan can identify incidences of; mineral encapsulation, problematic clays, detrimental minerals as well as calibrate the greyscale values of CT data. Additional 3D CT imaging carried out on cores provides spatial information of the minerals within the ore and mineral grades.

Nov 10, 2020

It is my role at this juncture to report to you on behalf of the Council of Mining and Metallurgical Institutions itself. In essence, the Council is an orbital body - a little like Halley's Comet - it returns to earth, in spectacular style, once in every four years. We must acknowledge, however, that the spectacle is provided by the constituent member body organising the particular event and, on this occasion, it is The Australasian Institute of Mining and Metallurgy. On behalf of the Council and its other constituent bodies may I thank the Australasian Institute most sincerely. Our thanks go to Sir James Foots, the President of the 13th Congress, and to all the members of the organising committee and to the five sub- committees. Over 40 people are involved as full members and I am certain there will have been many more involved in very meaningful ways. None of this great- team would ask me to mention them individually, I'm sure, but to fail to acknowledge the role of John Funnell, the Honorary Secretary, would be an unforgivable omission. We must also thank the kindred institutions in Japan, Korea, Thailand, Malaysia, and Indonesia who all helped with the tours themselves or with the initial preparations. Qantas, Jetabout Australia, and Jetabout Singapore have all also made very important contributions and, in our different ways, we each owe our thanks to them. At the two most recent meetings of the Congress - in Hong Kong and Johannesburg - Professor Marston Fleming made this report on behalf of the Council and was supported on both occasions by Robert MacWilliam as vice- chairman. Marston died in 1983 and Robert died in 1984; both men contributed a great deal to CMMI and we will miss their counsel for a long time. As you know, Sir Alistair Frame succeeded Marston Fleming as chairman in 1984 and I succeeded Robert MacWilliam as Vice-chairman.

Jan 1, 1986

By H Ş. Duzgun

It is expected that the future of mines will heavily adopt autonomy. However, problems with leveraging workforce transition, meeting Sustainable Development Goals, SDG’s (poverty, reduced inequalities), managing uncertainties (geologic, operational, economic), cybersecurity (connectivity, cyber-physical infrastructure) and innovation (transformative processes, real-time decision-making etc) are required to be solved for the intended autonomy. These problems also impact the safety of the future mine environment. The AI technologies provide a broad range of opportunities for enhancing mine safety. However, development of an accurate AI model for mine safety requires a large number of data, which may not be readily available to overcome the associated uncertainties in the mine environment.

May 5, 2022

By S Juras

To our geologists at Eldorado Gold Corporation, the release of the gold assays on a new ore zone causes a flurry of excitement. But to our metallurgists, that news is often greeted with the question ‘What’s the sulfur grade’? In our company, we operate and manage projects whose end-product will either be auriferous sulfide flotation concentrate or gold doré. Almost all of the steps in the ore processing are related to sulfur (in this paper specifically sulfide sulfur). So why do we geologists wait until late in a project or into production before collecting sulfur data for mine planning and ore control purposes?Gold deposits associated with sulfides commonly use a metallurgical process that begins with a flotation step to recover gold into a smaller mass known as flotation concentrate. Often, this step solely targets the sulfide minerals with gold only coming along for the ‘ride’. As a result, the gold grade in the concentrate is primarily influenced by the ratio of gold to sulfur in the feed. Should this concentrate require a refractory process downstream (eg pressure oxidation), knowing sulfur grade is critical as sulfur controls heat balance in the process. Regardless, we need sulfur models to be as robust as gold models, and created much earlier in the project evaluation process.Sulfur models require quality data collected at the same density as gold samples. Analytical methods must match expected grade ranges and quality assurance quality control (QA/QC) protocols and must be of the same integrity as in use for gold. Sulfur models will then be created by their own data analyses, interpolation protocols and validation. Furthermore, ore control systems should be designed for regular sulfur monitoring to ensure and enhance downstream value. Given time it should become habitual for geologists to likewise ask, ‘And what’s the sulfur grade’, or more specifically, ‘What’s the gold to sulfur ratio’?CITATION:Juras, S, 2017. Sulfur – the new geometallurgical grade in gold-sulfide deposits, in Proceedings Tenth International Mining Geology Conference 2017, pp 199–202 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By S Lehane, S Pearce

The characterisation and assessment of waste rock has been the subject of considerable research, and many guidance documents have been published both internationally and within Australia. While these documents provide detailed information on how to characterise waste rock, there is not a great amount of detail on how to determine the optimal waste management options from an operational viewpoint. For example, typical questions that a mine operator would seek answers to include: What placement method should be used (eg end tipping versus paddock dumping)? What is an optimal tip head height for waste placement in a storage facility? How should sulfide grade control be carried out?Defining the contributing factors to waste management and waste material placement and assessing the contribution of each variable directs these assessments towards a semi-qualitative and quantitative methodology. Quantitative methodologies show an increase in the confidence of these assessments by providing logical, measureable assessments.As part of a strategic assessment for waste management at an active mine site, a detailed risk-based investigation of the influence of variables common to waste placement was completed. These variables included placement method, placement height, sulfur grade and material conditioning (eg compaction) on the associated risks of waste material storage. The assessed risks include temperature assessments (potential for thermal take-off as a result of spontaneous combustion), toxic gas production and flow and acid production potential. Applying a numerical modelling approach to the assessment of the different waste material placement strategies allows for the variation in risk to be graphically presented and communicated through risk matrices and histograms.CITATION:Pearce, S and Lehane, S, 2015. Quantitative risk assessment tools to assist with waste management and placement guidelines, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 353–364 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 27, 2015

By M Jones

The past 100 years the mining industry can be characterised by a focus on increasing financial returns often to the detriment of social, human, manufactured and environmental capitals. Despite the sustainable development principles promoted by the International Council on Mining and Metals (ICMM), the Equator Principles and the African Mining Vision, which should have enhanced project promoters’ ‘licence to operate’ within a host community or nation, the industry has often failed to integrate proven innovations and best practices that enhance sustainability outcomes for mineral resource projects. This failure has led to delays, the abandonment of projects, with value destroyed for promoters, governments, host community and investors.The paper will outline the application of proven innovations, Enterprise Optimisation (EO), and Sustainable Operations (SUSOP®), during the pre-feasibility phase of a project. By determining the value of each capital before and after the application of proven innovations, the presentation will outline how and where value can be created across all five capitals over the life of a project or operation.The paper will demonstrate how the application of proven innovations significantly transforms the value-proposition of a mineral resource project or operation by generating additional value across all of the five capitals, reducing project risk, thus generating value for all stakeholders.CITATION:Jones, M, 2015. Fundamentally transforming the economic and sustainability signature of mining assets, in Proceedings Third International Future Mining Conference, pp 169–180 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By B Reynolds

The process design for green- or brown-fields metallurgical plants typically starts with two fundamental elements: the detailed mass and energy balance and the plant flow availability. The detailed mass and energy balance is generally developed using process flow-sheet simulation software and represents the steady-state operation of the plant at normal operating conditions. The plant flow availability, also known as a range of other industry-specific terms such as ‘flow availability’ and ‘operating factor’, describes the ratio of plant production to the steady-state mass balance. These elements are then used together as the basis for equipment selection and design.Plant flow availability takes into account a myriad of production loss factors including planned and breakdown maintenance, feed availability and composition changes, variability in operational performance and the interaction of batch and continuous unit operations. The combined impact of these loss factors are complex and as such plant flow availability is usually derived using a top-down approach such as comparison to an existing operation, a group of similar operations or to an anecdotal ‘industry leading’ benchmark. These top-down approaches are fraught with risk however, as they cannot factor in changes to equipment selection, flow-sheet or plant operating philosophy, and can result in over-expenditure of scarce capital or shortfalls in plant production.The use of dynamic simulation to provide a bottom-up alternative to quantifying the plant flow availability in metallurgical plant design has been growing rapidly in recent years. It provides a technique to quantify the combined impact of the loss factors described here and a tool to support process design and equipment selection by facilitating a range of sensitivity and what-if analyses. This paper presents a case study of how dynamic simulation has recently been used to support the

Aug 8, 2011

By J Howard

Following discovery in October 2004, commencement of development in February 2007 and first ore production in mid 2007, the Trident gold deposit, located in the Eastern Goldfields of Western Australia, has now been successfully mined for over three years. Three years of operational history has enabled the performance of the Trident underground mine to be reconciled against the mine plan and strategy proposed for the original feasibility study.The Trident deposit, initially based on two lode systems known as the Eastern Zone and Western Zone, has been continuously drilled, interpreted and re-interpreted over the period and as a result the addition of the Athena, Apollo and Artemis lode systems as well as numerous smaller scale lodes has been realised. The first three years has seen the Trident underground mine quickly move up to its 1 Mtpa design production rate. The mine plan and strategy used in the initial feasibility study and subsequently implemented, required sufficient flexibility to enable modification and optimisation to mine plans as ore zones were further defined. The ability to modify the mining plans has enabled Avoca to achieve its mining targets at Trident. With over 250 000 ounces gold produced to January 2010, the company is well positioned to achieve its ten year vision associated with the Higginsville Gold Project.This paper offers an account of operational experiences whilst providing comparison to assumptions and methodologies used in the original feasibility study. The paper is a sequel to a paper presented at the Tenth Underground Operators’ Conference held in Launceston, Tasmania titled Development Strategy of the Trident Underground Gold Mine.

Mar 21, 2011

By H Mischo, M Ferber, M Donner, B Jung, S Grehl, A Dietze

Mobile robots have been making impressive inroads in a variety of domains. Within the Mining-RoX project, Technical University Bergakademie Freiberg is exploring a further frontier for mobile and autonomous robots: underground mines. The potential benefits of mobile robots in underground mining are plentiful as underground mines are strenuous and potentially dangerous working environments for humans. A higher degree of automation, with robots either acting as helpers for human miners or even replacing all human personnel deployed underground, could help to significantly reduce mining costs. In disaster cases, rescue robots could help to find missing personnel. Unmanned mines operated by robots alone would not endanger human lives at all. Further use cases, and a particular focus of the Mining-RoX project, are mobile robots that gather sensory information of the underground mine (eg for the purpose of creating detailed 2D and 3D maps) as well as monitoring environmental conditions such as air and water quality. This paper presents the design of a prototypical mobile robot for mapping and monitoring underground mines. A generic robotic platform was extended with various 2D and 3D imaging devices as well as other sensors. First results from test runs in an underground mine are reported. Maps of two sections of the mine enhanced with localised sensor measurements were successfully created.CITATION:Grehl, S, Donner, M, Ferber, M, Dietze, A, Mischo, H and Jung, B, 2015. Mining-RoX – mobile robots in underground mining, in Proceedings Third International Future Mining Conference, pp 57–64 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By S Dorrington, J Olsen, N Kinkaid

Several studies have been conducted on the economic analysis of mining near-Earth asteroids for resources for use in Earth orbit. While these studies use detailed economic figures of merit, they often use many invalid assumptions in the trajectory design. Factors such as the energy and propellant requirements are estimated with analytic methods, however, the stay-time at the asteroid and the spacing of repeated launch opportunities are not taken into account. The work outlined in this paper attempts to combine detailed trajectory design methods with newly defined economic figures of merit to improve the economic assessment of asteroid mining missions. The study focuses on asteroid 2014 EK24, a near-Earth asteroid with very Earth-similar orbital properties.CITATION:Dorrington, S, Kinkaid, N and Olsen, J, 2015. Trajectory design and economic analysis of asteroid mining missions to asteroid 2014 EK24, in Proceedings Third International Future Mining Conference, pp 281–288 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By S Gezgin, F Beckstein, M Müller, D Rapp, D Sergeev, J Qi, A Lichtinger

Salts and their mixtures play an important role for industrial and energy sectors, eg metallurgy, biomass gasification and combustion, nuclear and solar powerplants and electrochemical processes. Depending on the composition of salts (eg Li+, Na+, K+, Mg2+, Ca2+ // NO3-, F-, Cl-, CO32-, SO42-, etc), the temperature range for different applications can vary starting from room temperature and going up to 1500°C. For the proper design and modelling of heat exchangers and other equipment, it is necessary to have reliable and validated data sets of thermophysical properties. The 50 mol per cent NaNO3 – 50 mol per cent KNO3 salt mixture as a well-studied composition was selected for validation of relevant thermophysical properties (heat capacity, enthalpy of phase transitions, thermal expansion, viscosity and thermal conductivity). To study these properties of the liquid phase, special crucibles and approaches should be implemented. Verification of these crucibles for different methods (differential scanning calorimetry (DSC), thermomechanical analysis (TMA), laser flash analysis (LFA) and rheometers) has been performed. The low thermal conductivity of salts is one of the main problems in implementing latent heat storage. In this project, the authors intend to develop a fundamental solution to this problem using chemically bonded metals with salts. These are known as metal-salt solutions. To fit the main parameters of new phase change materials to the requirements of thermal energy storage, a wide variety of possible combinations should be considered. CALPHAD modelling is used together with thermal analysis for the development of a consistent thermodynamic database including chloride salts (Li, Na, K, Mg, Ca // Cl) and corresponding metals (Li, Na, K, Mg, Ca). The results of the study of quasibinary and multicomponent metal-salt (eg Mg-KCl and Ca-KCl) systems as well as the selection of suitable crucible materials and challenges by studying of these systems will be discussed.

Aug 21, 2024

Breakwater Resources Ltd is a Canadian base metals producer with Cu-Pb-Zn operations in Canada, Honduras, and Chile. Two of its operations contain economical gold levels which are recovered in both gravity and flotation concentrates. The gold payable terms in zinc concentrate are poor when compared to gold concentrates or copper concentrates and various flow sheets have been evaluated by Breakwater staff to maximise gold reporting in higher value products. The Myra Falls mine in British Columbia recovers coarse gold in the grinding circuit, part of which is upgraded and sold as a gravity-gold concentrate with the balance being directed to the copper concentrate. A sampling survey showed that there was potential gravity-recoverable gold in the copper regrind circuit. Installing a gravity concentrator in the copper regrind circuit increased the gold grade and recovery in the higher revenue copper concentrate and reduced the quantity reporting to the less well paid zinc concentrate. The El Toqui Mine in southern Chile has distinct high-and low-gold orebodies which are campaigned separately through the flotation plant. The high gold zone yields both a gravity concentrate and an unusual gold flotation concentrate. The gravity concentrate undergoes intensive cyanidation and electrowinning on-site to produce dore, while the fl otation concentrate is sold to gold producers. The zinc concentrate contains signifi cant gold values. The paper describes efforts over the past few years to improve gold returns at Breakwater's operations and highlights the different approaches dictated by the mineralogy of the gold occurrences at these two operations.

Aug 1, 2010

By J Shillabeer

Paste backfill has been adopted by many underground mines in North America and a growing number elsewhere. Paste offers a number of advantages. This paper suggests wider applications of paste technology to surface tailings disposal and water management. Advantages include improved overall stability, potentially easier permitting, smaller water inventory and earlier reclamation. It may be feasible to use the same plant to prepare backfill and to dispose of surplus tailings. Example cost models are given to illustrate potential applications.

Jan 1, 1998

Western Australia has often been referred to as the fly-in, fly-out capital of the world. Fly-in, fly-out is a commonly used practice in Western Australia due to the geographic size and isolated location of the vast resource projects. In the State today, approximately half of all resource sector employees operate on a fly-in, fly-out basis, with a minority utilising drive-in, drive-out arrangements. fly-in, fly-out arrangements are generally beneficial from a sustainability perspective, delivering significant economic, social and environmental benefits to regional communities, the State and nation as a whole. Skills shortages and labour supply issues mean that the industry will be required to discover new ways of attracting and retaining employees, one of which is the adoption of fly-in, fly-out work journey arrangements. By 2015, the minerals sector in Australia will need to employ 70 000 more employees than it currently employs to achieve predicted increases in output. Of the 70 000 additional employees required, 42 000 will be required in Western Australia, almost 15 000 in Queensland and approximately 5000 in both New South Wales and South Australia. The fly-in, fly-out lifestyle as a preferred method of employment should be recognised as a valid lifestyle choice by all members of the community, offering a profound improvement in the quality of life for large numbers of employees and family members. It should be acknowledged that whilst fly-in, fly-out is a preferred option for many companies and their employees, individuals who make a choice to engage in fly-in, fly-out must balance the difficulties associated with the work û isolation and separation from family and friends û against the economic and lifestyle benefits that the work offers. This paper aims to illustrate the significant steps that the resources sector has taken to facilitate the fly-in, fly-out choice by ensuring that the commute option is a safe, attractive and manageable work journey arrangement.

Jan 1, 2008

By L Boczek

The term Engineer of Record (EoR) is commonly used in North America and South Africa to define the responsible person for the design, construction and operational phases of a tailings storage facility (TSF). Recently, this role has been elevated in prominence within Australia, but what does it really mean? Recent updates to international TSF guidelines suggests appointing an EoR is good practice, but where does the responsibilities of the EoR start and finish. Interestingly, both Samarco and Mount Polley failures had active EoR’s in place. This suggests that nominating an EoR alone, is not the full answer to mitigating the potential for a TSF failure. Appropriate construction and operational practices are key to the success of the design of TSFs, where all too often, operators ignore the operating plans developed by the designer. To be successful, a key consideration of the EoR role, is involvement in the operational phase of the TSF. This requires ‘buy-in’ from the mine managers and a change in the way TSFs are perceived by site. This paper explores how the roles and responsibilities of the EoR can assist in improving governance of TSFs if implemented effectively and what role the client has to ensure the success of the EoR.

Jul 1, 2021

By S Hayton

While coal seam gas is considered to be an unconventional gas, the proliferation of areas under exploration and development mean that it is rapidly becoming main stream. The potential of New Zealand's coals to produce coal seam gas has been recognised for some time. However, key market drivers have not been suitable for the progression of this potential into reality. Kenham Holdings Ltd and CRL Energy Ltd, recognising the potential for the gas in New Zealand have initiated what is the largest ever assessment of New Zealand's coal seam gas potential. The premature demise of the giant Maui field has raised the focus of new gas developments and has increased interest in what we are doing. Over the past couple of years Kenham Holdings Ltd and CRL Energy Ltd have approached the assessment of the coal seam gas potential in a staged programme. Preliminary assessment of the data on the permit areas indicates that the potential resource may be up to 500 PJ. To date, preliminary appraisals have been completed or are underway on a significant number of fields. Exploratory drilling has been completed or initiated on several of those fields, with results from this work being fed into the preliminary modelling as it has become available. Given that in many of these areas there is no pre-existing information concerning their gas potential and world wide experience with lignite is practically nonexistent, it has been a steep learning curve with many surprises. However, initial gas content results and preliminary gas flow models have been on the whole, rather pleasing, with the commerciality of some developments already apparent.

Jan 1, 2003

The new law on Environmental Protection and Management (Republic of Indonesia Law 32 of 2009) was passed by the Indonesian parliament in September 2009. This law aims to protect Indonesia's rapidly degrading environment by providing tougher provisions for both polluters and law enforcers. In doing so, the law introduces a number of new constraints and potential business risks that will affect all companies in Indonesia, particularly mining companies. Some of the newly introduced concepts follow.   Mining companies will now require an environmental license, issued by the Minister of Environment or local counterparts. This license is a prerequisite for all other business and operational permits. The Minister can revoke the environmental license at any time in case of an environmental incident or dispute. Mining companies may be exposed to additional environmental taxes and bonds besides already existing reclamation and mine closure bonds.   There is an increased risk of environmental lawsuits, due to more stringent controls on one side and greater protection for NGOs on the other side who make claims, false or true, against the company. Company executives and managers can be sued and they will be held accountable if environmental degradation has indeed occurred due to the company's activities.   Companies may face increased liabilities due to a change in the definition of contamination. The new definition is more stringent (and on occasion may prove too stringent to be practical); it also provides little room for flexibility in its application.   As implementing regulations are prepared over the coming two to three years, mining companies will need to adjust to the new law. A proactive approach is needed to minimise risk. Recommended actions include: upgrading existing environmental impact assessments to a higher standard; conducting baseline studies and thoroughly documenting environmental conditions on a regular basis; closely tracking regulatory changes, especially the forthcoming implementing regulations on the new environmental law; and regularly engaging key government and community stakeholders on environmental issues.

Jun 1, 2010

By B C. McLellan

The decline of ore grades on land, increasing demand and high prices for various minerals have led to an increased interest in mining the deep ocean sea floor. The potential deep ocean reserves are vast and in some circumstances the grades are high enough to consider mining. However, the consequences of such mining are as yet uncertain. This paper will present the results of a comparative assessment of life cycle impacts of deep ocean minerals. Two alternative extraction technologies from different deep ocean resource types were examined and key commodities are considered. Initial results indicate that the energy requirements will be higher than the average land-based resources, but may fall within the range of the deepest terrestrial mines.CITATION:McLellan, B C, 2015. Comparative life cycle impacts of deep ocean minerals and land-based counterparts, in Proceedings Third International Future Mining Conference, pp 253–260 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By B Taylor

The Perseverance deposit is the most southerly known economic copper/gold deposit within the Cobar gold field. The deposit is situated approximately 12 km to the south-southeast of Cobar and is essentially blind to surface with the top of economic mineralisation occurring 750 m below ground level.Based on the December 2010 resource estimate (inclusive of reserves and net of depletion) the deposit contains 3 011 000 tonnes at 6.1 g/t Au and 0.90 per cent Cu (590 000 oz of gold and 28 000 tonnes of copper). The deposit is comprised of four principal lenses, the Perseverance, Hulk, Zone B, and Hercules lenses. In excess of 90 per cent of the known resource tonnes are contained within the Perseverance and Hulk lenses. The deposit is shear related and hosted within lower Devonian rocks of the Cobar Basin. The competency contrast of rhyolites juxtaposed against sediments by the Peak-Perseverance shear is the principal control on mineralisation. Both the Perseverance and Hulk lenses are primarily hosted by brecciated rhyolites juxtaposed against Chesney formation sediments across the Peak-Perseverance shear. This faulted rhyolite sediment contact roughly defines the global orientation of the deposit. The Perseverance lens continues within the shear for up to several hundred metres beyond the extent of the faulted rhyolite sediment contact. Mineralisation within the shear beyond the faulted rhyolite contact zone is hosted by sheared silicified sediments. The Perseverance lens remains open at depth and to the south.The Zone B and Hercules lenses, which are significantly less important in tonnage terms, are hosted by rhyolite breccias within the main body of the rhyolite and appear to be only tenuously related to the Peak-Perseverance shear. Within the Perseverance lens, the presence of northeast trending high grade breccia veins developed oblique to the north-south trending shear system has led to the development of steeply north plunging high grade ore shoots within a globally north-south trending mineralised domain. These high grade shoots have limited horizontal continuity but significant down plunge extent.The presence of coarse gold and the resulting strongly skewed nature of the gold grades, in conjunction with controls on mineralisation which are not parallel to the mineralised domain, has led to predictive difficulties regarding stope performance.Strong heterogeneity of the gold content of the ore and geological controls on mineralisation which are not parallel to the global trend of the mineralisation impose a set of difficulties which sound geological control is helping overcome.

Aug 22, 2011