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By M Roper, M Lovitt

WMC Resources Olympic Dam Operation located in South Australia, is a poly metallic underground sublevel open stoping (SLOS) mining operation with a current annual production rate in excess of 9.0 Mt. Stope size, geometries, geotechnical considerations, drilling and blasting are critical components in stope performance. These factors are further influenced by stringent ventilation requirements due to the presence of airborne radioactive contaminants from uranium mineralisation. Stope planning is complex and mass blasting methodologies have been trialled at Olympic Dam with the view to reducing the frequency of stope blasts, improving stope stability, productivity and ultimately improving overall stope performance. A key aspect in the ability to undertake underground mass blasts of this scale is the application of i-konTM electronic initiation technology by Orica. In the past two years in excess of three million tonnes has been initiated utilising this electronic technology, with an average blast of 250 000 t ranging to the largest to date being 580 000 t. By providing flexibility in blast designs, the use of electronic detonators has allowed mass firings over multiple sublevels. This has resulted in a significant reduction in stope extraction steps compared to conventional pyrotechnic firings. The benefits of this reduction in the number of stope blasts are wide ranging from improved stability of interim stope voids between blasts, reduced blasthole damage, improved blast vibration management and reduction of complex changes to ventilation systems for blasting.

Jan 1, 2004

Single station group velocities of fundamental made Rayleigh waves over the period range 15-100 s are carguted for five provincial profiles of the West Pacific. Based on recordings of earthquakes around the West Pacific by the W~ (World Wide Standard Seismic Network) stations AFI (Afianalu), HNR (Honiara), WEL (Wellington), PAR (Raratonga) and RAB (Rabaul). The inversion of the derived dispersion curves for average shear velocity-depth structure of the crust, LID and LVL shows that (i) the over-all structure beneath the profile 'westernSamoa-Micronesia-Mariana' is in between that of regions 3 and 4 of Pacific Ocean (Yu and Mitchell, 1979), except that the velocity is slightly lower, (ii) the uppermost mantle beneath the 'Vitiaz Trench' profile between AFI and HNR is similar to that of region 2 of the Pacific - in other words, thin LID and thick LVL; (iii) the structure beneath the ' Ibnga-Keradec Ridge' profile has a thick crust with thick sediments, and LID-LVL velocity and thickness are similar to region 3 of the Pacific; (iv) beneath the profiles ' Tonga/ Kermadec Trench events-RAR station' the structure is intermediate between regions 3 and 4 of the Pacific Crean; (v) from decomposition of the 'Solomon-meriana' profile, the structure beneath the Cntong Java Plateau has a thick crust with thick sediments and the uppermost mantle is similar to that of region 3 of the Pacific clean.

Jan 1, 1990

By I Gray

This paper examines the effects of the changes in stress that a coal may undergo as part of the drainage process. As a consequence of this, some coal seams will come to the situation that they have zero horizontal stress existing within them at the time of mining. The hypothesis of this paper is that this lack of horizontal confining stress means that on mining, the vertical stresses may be easily raised to a level where failure occurs. This failure may be accompanied by significant energy release from energy stored within the coal as well as that coming from the roof and floor. To determine the state of stress within the coal seam, the concept of the effective stress path that the coal passes through is examined and is found to be very dependent on the shrinkage of the coal with degassing, the Young’s modulus of the coal and its Poisson’s ratio. The Young’s modulus of the coal is important and has been found to be highly dependent on the state of stress within the coal. It may change by more than an order of magnitude.CITATION:Gray, I, 2014. The consequences for pillar stability of zero confining stress brought about by forced or natural drainage, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 331–336 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By R Schiller, E Chait

"Quebrada Blanca is a porphyry copper deposit located in the Eocene-Oligocene belt of Chilean Andes. Operation started in 1994 and original reserves for supergene mineralisation gave a life-of-mine (LOM) of 20 years; however, further exploration extended the LOM until 2020.In order to optimise the remaining five years of supergene resource, geometallurgical variables were added to the geological model including copper recovery and acid consumption. LOM plan encompasses finishing the phase number eight and the future development of phases 11 and 13.LOM lithologies include diorites, quartz monzonites, porphyries, igneous and tourmaline breccias. Main alterations are: potassic, phyllic and argillic. Litho-alterations or geometallurgical units were formed by combining five types of rocks with three types of alteration. According to statistical information, the deposit can be represented with 12 litho-alteration units, which cover 98 per cent of the LOM volume.For copper recovery information, there were 40 mini-columns tests made in order to obtain kinetics curves and copper recovery values after comparing the difference between head and tails grades. Acid consumption was obtained using an automatic neutraliser device-based test.Historical data said that copper recovery in pads after 450 days of irrigation is around 75 per cent of recoverable copper while acid consumption is around 5.5 kg/t.According to this study, lower recoveries are related with potassic-altered diorites and argillic-altered quartz monzonites with values around 60 per cent. On the other hand, best recoveries could be found in potassic-altered quartz monzonites and argillic-altered diorites with values closer to 80 per cent.It was also revealed that the most reactive rock is the potassic-altered diorite with 12 kg/t of acid consumption. This rock covers approximately 40 per cent from phases 11 and 13.The final geomet model was calculated using a program that relates each geometallurgical unit with a specific copper recovery and acid consumption value. Results found after comparing model-obtained information with historical leached pads data were used to validate the model.CITATION:Chait, E and Schiller, R, 2016. Adding Copper Recovery and Acid Consumption Variables to the Geological Model of Quebrada Blanca, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 257–266 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By I Ritchie, A Johnston, D Yataco

Marcobre SAC (Marcobre) is developing the Mina Justa copper mine project, located in the Ica region of Peru. The Mina Justa IOCG orebody comprises of a sulfide mass overlain by an oxide cap with a sharp transitional zone between the sulfide and oxide masses. The primary target metal is copper, but there are minor amounts of gold and silver. The oxide will be treated by HPGR, crushing and vat leaching, whereas the sulfide will be treated by HPGR, milling and froth flotation. The processing selections are due to some unusual ore characteristics which have required relatively unconventional solutions.Vat leaching was chosen over heap leaching and other processes after detailed trade-off studies found it to be the most attractive, primarily due to the high acid consumption of the ore. The sulfide flotation produces a wide range of concentrate grades due to the complex nature of the mineralogy. The selection of HPGR circuits for both the oxide and sulfide ore is due to the extremely hard and competent nature of the deposit. These factors and others have contributed to a unique process selection for this resource.The selection process for the oxide and sulfide ores, and an overview of the technology, equipment selection and geometallurgy, will be discussed.CITATION:Johnston, A, Ritchie, I and Yataco, D, 2017. Process development for the Mina Justa project, in Proceedings MetPlant 2017, pp 207–217 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 11, 2017

By A Parbhakar-Fox, S C. Dominy

The prediction of acid and metalliferous drainage (AMD) from mine waste materials is critically important during all stages of the mine value chain. However, to determine such geoenvironmental characteristics static and kinetic testing of individual waste units must be performed on representative samples. The importance of sample selection cannot be underestimated; it is the single most critical aspect of any geoenvironmental investigation. Poor sampling techniques and inadequate sample selection will contribute to excessive variance, difficulties in interpretation and incorrect assessment. By undertaking mesotextural characterisation based on hyperspectral mineralogical data (with sulfur assay data if available), opportunities to improve sampling strategies are presented. Such data will inform the selection of samples for low-cost total sulfur, paste pH and geoenvironmental logging, which collectively will allow for accurate AMD forecasting and improved sampling practices to be achieved. Once sampled, robust quality assurance/quality control (QA/QC) protocols must be developed where the use of international certified reference standards become obligatory. This is currently not practised, resulting in inter-laboratory discrepancies when undertaking waste classification. Further improvements in geoenvironmental characterisation testing lies in the adoption of blended static testing protocols, whereby blends of waste materials can be efficiently tested so as to give an early forecast as to whether they will produce acidic or metal-laden drainage. Such information is integral in developing a waste schedule that will allow for a non-acid forming waste landform to be constructed right from the start of the operational phase. Ultimately, improvements in this discipline lie in technological innovations with regards to mineralogical characterisation, and by offering geoscience and minerals engineering students a competent education in the discipline. Collectively, this will empower a step-change in AMD prediction and waste handling, and will make the realisation of the United Nations Sustainable Development Goals a reality, rather than a dream.CITATION:Parbhakar-Fox, A and Dominy, S C, 2017. Sampling and blending in geoenvironmental campaigns – current practice and future opportunities, in Proceedings Eighth World Conference on Sampling and Blending , pp 45–54 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By A J. Weston

Block or panel caving technology is far removed from that of the top slicing and block caving of the late nineteenth or early twentieth centuries. The rapid mechanisation and expansion of these methods in the late twentieth century was as much a result of the change of the technology of the unit operations of development, ground support, drilling and blasting and transport as it was of the advances in geotechnical understanding and practice. The small footprint gravity and scraper block caving mines with boundary weakening, rail transport and shaft hoisting of the early to mid-twentieth century have been replaced by massive high lift panel caves using preconditioning of the ore, large load-haul-dump units, adjacent crushers and conveyors to surface. The technology changes in the unit operations are described and the drivers for these changes examined.CITATION:Weston, A J, 2016. The evolution of block caving technology, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 265–274 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By G S. Anderson, N W. McDonald

"The IsaMill™ was originally developed to address liberation issues at Mount Isa Mines (now Glencore) operations, McArthur River and Mount Isa in the early 1990s. Following on from the industrial success at those operations, the IsaMill™ was commercialised. In the year 2000, Kalgoorlie Consolidated Gold Mines (KCGM) became the first external user of the technology with a 1.1 MW M3000 IsaMill™ installed to supplement the roaster capacity at its Gidji Processing Plant. The IsaMill™ was used to ultra-fine grind about 10 t/h of pyrite flotation concentrate to 10–12 µm prior to gold cyanide leaching. Based on the success of the Gidji installation, another was installed at the processing plant at KCGM’s Fimiston operation in 2002 in a similar duty.In 2014, a 3 MW M10 000 IsaMill™ was selected to replace the roasters at Gidji as part of the A$98 M emissions reduction project. The mill was commissioned in April 2015 at the design 30 t/h, allowing the immediate shutdown of the two roasters. Replacement of roasting with ultra-fine grinding completely eliminated air emissions at Gidji while maintaining overall plant production rates.This paper details the history of the IsaMill™ at KCGM from the original M3000 to the latest M10 000. It covers the basis of the process selection, circuit design, operating and maintenance data.Citation:Anderson, G S and McDonald, N W, 2016. IsaMill™ at Kalgoorlie Consolidated Gold Mines - from the M3000 to the M10 000 and Replacement of the Roasters at Gidji Processing Plant, in Proceedings 13th AusIMM Mill Operators’ Conference 2016, pp 29–38 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Oct 10, 2016

By I Gipps

Each of us has a vision of what the future mine will be and, generally, these visions have many similarities and some differences. One of the major discrepancies in visions of the future mine is not the ultimate goal but the path to achieve it. Many of the future concepts require a radical re-thinking of how things are and will be done yet. So how do we reach this visionary future mine? We need a path that satisfies both our future aspirations of a high tech gee-whiz operated from our iPads and the unfortunately mundane approach that says ‘we must know the method works, ie nothing new’.This paper explores how, within a research based organisation, we firstly set our ultimate goal and then divide the path into realistic technology development chunks that would appeal to mining companies to progress within their organisational constraints. Through examples, such as, automated LHDs, communications systems, surveying and localisation, rock cutting and geological sensing, we illustrate how this path will get us from the here and now to the out there future.This paper also demonstrates CSIRO’s short, medium and long-term research in many of the areas needed to create the Future Mine: mining methods, automation and remote control, mine communications, mapping and mission planning, geological sensing and, importantly, human-system integration, which examines how to effectively present data as information to operators and supervisors in an intelligent and useful manner.

Nov 22, 2011

In practice a sampling solution is a compromise of many requirements: the sample should be representative; the sampling system should also be reliable, less than 95 per cent availability restricts the use of the assayed sample for process control purposes; no sample is the worst sample, and investment costs and installation space/layout are frequently a restriction. For instance, online X-ray analysers for process control introduce a delimitation error by the nature of X-ray physics. Thus only in special cases a relative accuracy better than three per cent relative, as one standard deviation, is achieved. A sampling system for process control needs not to be, as representative, for so many sample properties, as one for composite laboratory analysis samples. Sampling system maintenance is also an important issue. There are many sampling systems in the industry which have been difficult to maintain and are in disuse for lack of resources or incentives to keep them running. Pierre Gy developed the most generally accepted sampling theory. One of the main principles is that all particles in a one-dimensional process stream should have equal chances of being included into the sample. A correctly designed and operated transversing cutter comes close to this goal but has limitations in temporal representativity. For slurries an acceptable solution in many cases is to use a fixed vertical cutter(s) in a position where the slurry is well-mixed by turbulence and other means. For online analysis, reliability problems are mostly related to faulty design or installation of the piping system to the analyser. Properties of material processed, process flow sheet and piping details before and after the sampler have to be taken into account when deciding on which sampling arrangement is appropriate. Guidelines and some solutions to these issues are presented in this paper.

Mar 1, 2010

At moderate depths this question is of relatively small importance, but at depths over 2,000 feet it becomes a matter of some consequence. The rate of increase of temperature with the depth varies in different localities, but as a rough average we may take it to be about 1° Fahr. for every 50 feet of depth. The variation of temperature of the earth's surface from summer to winter penetrates to a comparatively shallow depth. At 50 feet the variation becomes practically insensible, and the temperature of the strata will be about the mean temperature at the given locality, from 60° to 75° F. in this country or the comfort of men working in the mines it is desirable to maintain a temperature of about 70° F. in the workings, or approximately the temperature of the strata near the surface.In order to obtain some idea of the magnitude of the undertaking involved in cooling a mine, I have examined the effect of placing in a long drive an apparatus by means of which we can abstract heat at a uniform rate from the drive, keeping, thetemperature nearly the same at all points of the drive at any given time.The lowering of temperature 70 F. at any distance feet from the centre of the drive (treated as a cylinder of the same sectional area as the actual drive), after an interval of time days from the commencement of the operation is given by the formula...

Jan 1, 1907

By T Ireland

The Project Hobson tunnel excavation was the first use in New Zealand of an earth pressure balance (EPB) tunnel boring machine (TBM). The tunnelling on the project was very successful and break-through was achieved three weeks ahead of program, demonstrating that tunnelling can be undertaken in Auckland with a high degree of cost certainty.Project Hobson involved the replacement of an existing 90 year old above ground sewer that crosses Hobson Bay in Auckland, New Zealand, and which had reached the end of its economic life, with a 3 km long, 3.7 m internal diameter segmentally lined bored tunnel. The NZD$ 118 M project has provided several environmental benefi ts to the Owner, Watercare Services Ltd and the local community:· provide capacity to meet projected growth in the region,· virtually eliminate wastewater overflows into Hobson Bay and the Waitemata Harbour, and· remove an obtrusive visual feature and open up the bay for recreational purposes.Auckland’s bedrock is a weak sandstone/siltstone (East Coast Bays Formation), subject to infilled paleovalleys. The geology in the region has been significantly influenced by volcanic activity; 49 volcanoes are present within 20 km of the city centre.The paper describes the design and construction challenges for the projects, including TBM performance, ‘sticky spoil’ management, and risks associated with basalt lava flows and two paleovalleys. The paper also highlights the reasons for the success of the project, including a rigorous approach to risk management during design, and effective planning during construction. Other useful data such as the effect on the watertable caused by closed face tunnelling, and ‘faceloss’ estimates derived from settlement arrays are included in the paper.Project Hobson also saw the successful implementation of a Geotechnical Baseline Report – one of the first uses of this type of document in Australasia.

Mar 8, 2011

By P Collier

From 1972 until 1989 when operations were suspended Bougainville Copper Limited (BCL, owned 53.58 per cent by Rio Tinto Limited) operated a large open pit mine and processing facility at Panguna on Bougainville Island, Papua New Guinea producing copper concentrate containing significant quantities of gold and silver.BCL has a stated vision of recommencing operations at Panguna. In 2008, Rio Tinto, on behalf of BCL, conducted a multi-disciplinary study to assess the technical and financial viability of redeveloping the Panguna operation. One of the key outputs of the study was a Joint Ore Reserves Committee (JORC) Code compliant mineral resource statement based on the existing block model and fundamental data, archived since mine closure. Historical data (including the resource block model and drill hole data) was recovered from computer archives by a former Panguna mine employee familiar with the various obsolete data formats, thus maintaining an unbroken chain of custody of the data by Rio Tinto since operations were suspended. No additional data were collected as part of this study.The extensive data and documentation archive facilitated a sufficiently detailed evaluation of the fundamental data and model to support an updated resource statement. Table 1 of the JORC Code was used to guide the model validation process.Reconciliation of blasthole and metallurgical plant data with the reserve model, indicated that the copper and gold drill hole composite database was significantly biased towards underestimation in several key domains due to a combination of the following: mineralisation loss during core loss, core loss (minor), vertical drill holes failing to intersect sufficient subvertical mineralised fractures and veins, drill hole spacing too wide, and variable diamond drill hole core size. The resource model evaluation was based on three material types (all previously mined at Panguna), that were defined based on cut-off grade and rock type parameters: direct feed ore – material for delivery directly to the plant, preconcentration and screening ore – subeconomic material beneficiated to produce fines of economic grade, and waste. Three pit shells and designs were generated based on three separate sets of economic parameters. These economic parameters were also used to assign material types to the block model. The three resulting models were then evaluated against the corresponding pit shells.Classification of the resource was approached conservatively due to the inherent bias in the drill hole data. Consequently only Indicated and Inferred resources were tabulated.The study highlighted the importance of maintaining detailed documentation pertaining to resource estimates and operational history, particularly reconciliation, and the value that can be added by a simple, low-cost data compilation exercise.

Aug 22, 2011

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

By C Harrison, A Bowskill

The Ambuklao hydroelectric dam was originally constructed in the 1950s in the remote and mountainous region of the northern Philippines. Following its construction the dam has suffered heavily due to siltation and a partial collapse of the intake structure due to a 7.8 magnitude earthquake that struck the region in 1990. Between the years 1990 and 1999 the power station progressively lost its capacity to generate power. In 1999 the owner took the power station out of commission. The power station remained idle over the next 12 years. In 2008 the power station was sold to a new owner who commissioned the rehabilitation works.The rehabilitation project restored the operating status of the power station in June 2011 and increased its capacity from 75 MW to 105 MW. The civil contract of the rehabilitation project required the construction of a new intake structure behind an in situ rock coffer dam on the edge of the existing reservoir, new 6.2?m diameter × 124?m deep blind sunk shaft behind the intake structure, which connects to a new 6.8?m horseshoe profile headrace tunnel that ultimately connected onto the existing vertical penstocks which feed three No 35 MW Horizontal Turbines rated at 155?m head.The unique challenge in rehabilitating this existing hydropower station involved finding solutions that would conclusively deal with the challenging geological and hydrogeological conditions associated with excavating new tunnels and a drop shaft beneath a live dam.McConnell Dowell was awarded the civil works package for the rehabilitation works in August 2008. The Ambuklao rehabilitation program took 33 months to complete.Over 600?m of tunnels were excavated in highly weathered and often challenging geotechnical conditions via drill and blast with the extensive use of high-pressure fissure grouting to control groundwater ingress that was surcharged by the dam.This paper focuses on the use of high-pressure fissure grouting that took place to enable the excavation of the new waterway system and intake structure.CITATION:Bowskill, A and Harrison, C, 2014. High-pressure fissure grouting for drill and blast tunnelling, Ambuklao, Philippines, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 141–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By C J. Moran

Given that the mining industry is committed to sustainable development principles and that Australia is experiencing changes to the regulatory environment that aim to modernise the water sector and encourage adoption of consistent approaches, there is a well defined need for the Australian minerals industry to develop a water accounting framework. This requires: key terms and definitions for water metrics for use in the Australian minerals industry that is consistent with the wider water sector, a suite of metrics representing key components of an operationÆs water balance, a calculation method for some of the metrics, and a reporting protocol. This paper presents the methodology that was used to derive these four components. Existing accounting frameworks were reviewed and key terms and definitions that were consistent with current requirements were proposed. A calculation methodology was developed to obtain some of the key indicators and variables that cannot be easily measured directly (water loss through evaporation is an example). The adopted terms and definitions dictated model development, with the conclusion that a systems approach was the most effective calculation process. To test the proposed definitions and calculation methodology, values for water metrics were derived for eight sites. The proposed framework and definitions could deal with the specific situations selected as case studies. The associated calculation methodology produced complete accounts at various levels. Some elements of the accounts could be directly checked against available data and simulations. The framework captured well variations in the reuse efficiencies; reuse efficiency could even vary for similar processes. It is concluded that this preliminary accounting framework provides a consistent language and metrics for quantifying and communicating water management, both at the intersection of the site with the surrounding landscape (through detailed reporting of site inputs and outputs) and within operational activities. Using this consistent framework for quantifying and documenting water use within an operation will provide a platform for compiling and comparing minerals industry water use with other sectors. This may support benchmarking activities within regions or companies and help demonstrate leadership amongst water users in water resource stewardship. The approach presented here is applicable to a wide variety of mining and processing activities, and biophysical environments, and can be adopted as the first step towards developing national water accounts for the Australian Minerals Industry.

Jan 1, 2009

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

By P Joyce, D R. Cooke

The Dinkidi Cu-Au porphyry deposit is situated in the Caraballo Range of North Luzon, Philippines. Although comparatively small, Dinkidi has unusually high gold grades with drilling by Climax-Arimco Mining Corporation delineating a 110 Mt orebody at 1.2 g/t gold and 0.5 per cent copper. The magmatic-hydrothermal evolution of Dinkidi records a distinctive switch in mineralisation from an early orthoclase-dominated Au-rich assemblage, typical of alkaline porphyry systems, to a later quartz stockwork Au-Cu rich assemblage typical of most calc-alkaline to shoshonitic porphyry systems. The early orthoclase-dominated stage is associated with the intrusion and crystallisation of a variably-textured clinopyroxene-syenite dyke that contains high-grade (5 - 20 g/t) gold mineralisation. We consider this dyke to be a Cu-Au porphyry analogue to the pegmatites found in granitic systems. Dinkidi is hosted within the Early Miocene Didipio Igneous Complex. This alkaline igneous complex is comprised of early unmineralised gabbros (pyroxene-plagioclase cumulates), clinopyroxenites (pyroxene cummulates), diorites and monzodiorites that have been intruded by a large, weakly mineralised monzonite pluton. The Dinkidi deposit is located at the southern margin of the monzonite pluton. Mineralisation is hosted within a composite monzonite stock. Within the stock, an 800 metres by ~200 metres (plan section) elongate monzonite stock (Tunja Monzonite) predates and hosts the bulk of the Au-Cu mineralisation. This has been intruded by the thin (10 to 30 m wide), highly mineralised variably-textured magnetite- and clinopyroxene- phyric syenite pegmatite (the Balut Dyke). The youngest phases of the composite stock are leucocratic quartz-monzonite porphyry (Quan Porphyry) that grades texturally, in its core, into a post-mineralisation crystal-crowded quartz-syenite (Bufu Felsite). The late-stage Bufu Felsite is inferred to be the source of much of the Cu-Au mineralisation. The Didipio Igneous Complex has intruded a sequence of Late Oligocene alkaline andesitic lavas and volcaniclastics and overlying potassic dacitic lavas. Whole rock geochemical analyses indicate that the intrusions and the potassic dacite lavas in the surrounding region are co-magmatic. Five main stages of hydrothermal activity are recorded at Dinkidi. An unmineralised K-silicate (biotite-magnetite) alteration assemblage formed during the intrusion of the Tunja Monzonite stock. The diorites surrounding the stock display intense selectively pervasive biotite and magnetite alteration and are cut by an extensive network of orthoclase veins and monzonite dykes. The orthoclase-dominated assemblages of Stage Two carry substantial high-grade Au mineralisation and are associated with the intrusion of the Balut Dyke. The emplacement of this unusual dyke is associated with emplacement of pegmatitic clinopyroxene-orthoclase-magnetite¦sulphide dykes, localised orthoclase flooding along the margins of the dyke, and subsequent emplacement of an extensive orthoclase-actinolite-bornite¦chalcopyrite-fluorite stock-work, and development of widespread selectively pervasive actinolite alteration. The main stage of Au-Cu mineralisation at Dinkidi is intimately associated with the intrusion and initial crystallisation of the leuco-monzonite porphyry (Quan Porphyry) and emplacement of a quartz stockwork followed by carbonate-sulphide deposition and intense vein-related sericite and carbonate alteration assemblages. The quartz stockwork formed synchronous with the deposition of the æBugoy QuartzoliteÆ, a very coarse grained mosaic of quartz-orthoclase-perthite along the walls and top of the crystallising intrusion. Stage 3 was terminated by crystallisation of the distinctively vuggy Bufu quartz-syenite phase in the core of the intrusive, with associated antiperthite veins, and the subsequent explosive brecciation of the roof of the intrusion, forming a quartz-fragment breccia from the Bugoy Quartzolite. Retrograde metasomatism during Stage Four was intimately associated with the emplacement of extensive, late-stage carbonate, silica and zeolite veins and widespread selectively pervasive carbonate alteration. The last hydrothermal stage at Dinkidi, Stage 5, is comprised of strong selectively pervasive clay alteration and is associated with fault-related brecciation of the Dinkidi stock.

Jan 1, 1999

By R Morrison, R Dunn

In many mineral processing operations, the reported production figures for an accounting period may not make the best use of available data. While most of the mathematical approaches, such as check-in/check-out, mass balancing, used in effective metallurgical accounting strategies are well understood, the sources and magnitude of measurement errors generally are not. As part of the æAMIRA P754-Metal Accounting and ReconciliationÆ project, a study was undertaken at the Northparkes copper/gold concentrator near Parkes, New South Wales to examine the data used in their concentrator metallurgical accounting system. This paper summarises the results of a detailed examination of the mass measurement systems around the concentrator as well as the primary sampling system used for grade estimation. The goal of this work was to develop practical techniques to quantify the error (ie both accuracy and precision) of the measured metal accounting information. With this information, statistical confidence levels for this data can then be calculated. If the errors are small, the effect of error in each piece of measured data can then be propagated to other calculated production figures such as recovery and feed grade using a statistical technique called æthe propagation of errorÆ.

Jan 1, 2007

By N Cann

In the 10 years from 1998 to 2008 the annual number of fatalities in the Australian mining industry has plateaued (MCA, 2007-08 and abc.net.au website). Despite significant efforts to eliminate fatalities, this is not a comfortable statistic in this very public performance indicator.GHD has been working with the mining and minerals processing industry to identify the key risks that lead to fatalities utilising a semi quantitative risk assessment technique (SQRA®), initially developed to assist Major Hazards Facilities prepare Safety Cases (OH&S, 2007-08) in response to the Longford Incident in 1998 (Dawson and Brooks, 1999).Workshop cross functional teams are assembled from the sites and led by the GHD facilitators to identify the incident types that can have fatal consequences, the causes of those incidents and the controls that are utilised (or could be utilised) to reduce the risk. The risks for each incident type are quantified to produce a risk profile for the facility and the critical controls – the controls that have the greatest impact at reducing the risk of fatality – are selected. These controls are assessed for their adequacy and improvement actions are identified. Prioritisation of the actions is achieved by re-estimating the incident risk profiles.A review has been undertaken using a small sample from the more than 100 individual studies that GHD has completed at mining and minerals processing sites. The five most significant risks reported by sites are:1. Fall from Heights,2. Vehicle/ Vehicle and Vehicle/Pedestrian interactions,3. Entanglement,4. Molten Metals and Materials, and5. Electricity.The most significant reductions in risk identified were found to be by implementing engineering controls. Examples include:1. Chutes to contain splashes and spills of molten materials,2. Redesigning instrument and equipment layouts to take personnel away form high risk areas,3. Designing remotely operated equipment to remove personnel away from high risk areas,4. Proper fire fighting equipment provisions such as deluges around flammable materials, and5. Adequate risk assessment to ensure equipment is designed to handle the real situations and not a design case to meet an arbitrary specification.All of these cases and many of the actions identified in the studies could have been handled through better design and construction early in the life of a project rather than retrospectively fitted after operations have begun.

Aug 8, 2011