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By Nicholas Adrian Barcza

"What affects and influences one’s perspective of the mining and metallurgical industries?One’s perspective of the industry we work in changes over time as a function of our experience as well as from the interaction we have with colleagues locally and probably even more so with those internationally. Furthermore, the ever-changing environment continues to impact the context in which one sees things. Living mostly in South Africa through its changes in the past fi fty years but also having the opportunity to travel extensively and work on projects abroad adds an invaluable richness to this more global perspective. One of the greatest challenges is how best to use this experience to endeavour to support the many potential opportunities in southern as well as sub-Saharan Africa. However, one has also to face the realities of how the best interests of the country and its peoples are sadly often not well served for various unfortunate reasons. Investment, education, regional stability, and good governance are some of the most critical considerations for the prosperity and survival of the region.The mining and metallurgical industry in southern and sub-Saharan Africa changed significantly during the post-colonial and apartheid eras as a result of global and regional developments that have impacted the ownership of businesses, the technologies used, and products produced in a manner that was not envisaged even fi fty years ago. Southern Africa’s mining and metallurgical industry has progressed from one based mostly on diamonds and gold in the late 19th century to a much more diverse one that involves the production of a variety of other precious, base, and ferrous metals and minerals as well as coal and industrial minerals. The infrastructure and manufacturing capacity was largely developed to meet the needs of this industry during its growth phases, but even though the dynamics have changed there is still a need for more efficient and effective support systems in the region."

Jul 1, 2019

By F. M. C. C. Vieira

Four mining alternatives for exploiting an ultra-deep orebody were assessed through a multidisciplinary evaluation process which involved: the generation of a 3D geological model; the design and scheduling of life-of-mine layouts; the analysis of anticipated ventilation and cooling conditions; the study of rock-related risks of mining in ultra-deep stress environments; the logistic implications of transporting men, rock and materials; and, lastly, the economic implications of each option. Once results from the integrated mine design assessment were available, mine planners were faced with an important problem to solve: how to identify the optimal mine design alternative when numerous assessment measures and multiple decision criteria needed to be considered simultaneously? To address this ‘multiple-attribute decision problem’ and arrive at the ‘optimal layout for ultra-depth’, a generic decision methodology that uses principles of ‘utility’ was applied. The methodology assumes that ‘single-value risk estimators’ do not account for the inherent variability of real conditions. Therefore, risk estimators were represented by statistical distributions of their incremental changes, where applicable. The stochastic variables, once defined, are used as inputs in the ‘utility’-based layout decision scheme. This ‘utility’-based decision methodology offers a framework for mine design decisions to be made objectively, when complex trade-offs between multiple risk domains need to be considered simultaneously. Upon applying it, one of the layouts emerged as the preferred alternative. Keywords: Utility; mine design; multiple-attribute decision; layout selection

Jan 1, 2003

By S. G. Ercelebi

In surface mining operations, truck haulage is the largest item in the operating costs, constituting 50 to 60% of the total. In order to reduce this cost, it is necessary to allocate and dispatch the trucks efficiently. This paper describes shovel and truck operation models and optimization approaches for the allocation and dispatching of trucks under various operating conditions. Closed queuing network theory is employed for the allocation of trucks and linear programming for the purpose of truck dispatching to shovels. A case study was applied for the Orhaneli Open Pit Coal Mine in Turkey. This approach would provide the capability of estimating system performance measures (mine throughput, mean number of trucks, mean waiting time, etc.) for planning purposes when the truck fleet is composed of identical trucks. A computational study is presented to show how choosing the optimum number of trucks and optimum dispatching policy affect the cost of moving material in a truck-shovel system. Keywords: Open pit mine, equipment selection, dispatching, linear programming, closed queuing network theory

Jan 1, 2009

By J. Kuijpers

Failure and fracturing are often regarded as synonymous. While this is obviously true in an environment dominated by tensile stresses, it is still not clear how failure and macro fracturing are related in a compressive stress environment. Excavations at great depths are typically subjected to compressive stresses only. The fracturing observed around such excavations is therefore commonly assumed to be induced by such compressive stresses. The physics of such a phenomenon have unfortunately never been explained properly, so that the formation of these so-called extension fractures still remains a mystery. As the presence of fractures is an important factor affecting the stability of underground excavations, it is of practical relevance to understand their formation. In this paper, a possible explanation is proposed. It is argued that fracturing in a compressive stress environment is a secondary effect. Primary failure, in the form of micro fracturing and associated damage is assumed to precede the major fracture processes. The fractures are thus generated in response to material failure and may not directly be the cause of failure. The implications for material response and behaviour are discussed. Keywords: micro fracturing, macro fracturing, extension fractures, failure, compressive stresses, damage, excavations.

Jan 1, 2000

By M. D. G. Salamon

It has been noted in recent years that the pillars in some bord-and-pillar workings scale or spall. In due course this process may result in the collapse of the affected panels. This paper presents a methodology for assessing the long-term behaviour of such workings, employing a simple model of pillar deterioration by scaling. It is assumed that scaling causes a gradual reduction in pillar width, hence the safety factor of pillars reduces in time. It is also postulated that the process of scaling will be arrested if the coal rubble around the pillar reaches a critical height. The probability that the pillars will survive for a certain period of time, or indefinitely, can be estimated. This can be accomplished by using the log-normal distribution proposed by Salamon and Munro4todescribe the distribution of the apparent safety factor values at failure. If an estimate of the rate of scaling is known, it is also possible to quantify, using a Monte Carlo technique, the expected life of the pillars. The method also facilitates pillar design by specifying a probability of survival for a given number of years or, alternatively, for an indefinite period. Using the limited pool of available data, analyses show that the proposed model does not appear to be inconsistent with observed behaviour of pillars in the Vaal Basin. The crucial parameter is the rate of scaling. Back calculations from eleven cases suggest that the rate of spalling in the Vaal Basin is about 0.2 m/year. It is noteworthy that two further cases in the same area give significantly higher rates (0.85 m/year). Some underground observations in the Witbank area indicate considerably lower rates in the order of 0.02?0.04 m/year. Further areas for study are recommended. These include a study of old workings to determine the extent and rate of scaling in the various coal fields, an investigation into the possible relationship between scaling and the chemical composition of the coal. In addition, model studies will be required to assess the practical impact of the research findings.

Jan 1, 1998

By D. S. van Vuuren

Titanium bearing resources can selectively be chlorinated at temperatures below 200°C if the Ti02 in the feed is nitrided before chlorination. However, the nitriding reaction is highly endothermic, requires highly reducing conditions, is only thermodynamically favourable at elevated temperatures, and is affected by mass and heat transfer restrictions. At the required processing conditions, problems might also be experienced with sintering and with melting of slag forming components in the raw materials. A test programme was undertaken to study the effects of raw material type, temperature, gas composition, bed depth, carbon to raw material ratio and residence time in order to simulate conditions required for scaling up a nitriding process. In contrast to previous experience with low-grade titanium-bearing slag containing about 30% Ti02, ilmenite and chlorinateable slag do not form melting phases under the studied nitriding conditions and hardly sintered at all. Both feed materials can readily be nitrided with conversions in excess of 90% at temperatures around 1300°C and using bituminous coal as reducing agent with fixed carbon in excess of 1.1 times the stoichiometric requirement. The conversion decreases as the bed depth of the feed material increases and the N2/CO ratio in the gas decreases. Analysis of the relative rates of mass and heat transfer into the reacting beds of ilmenite and slag showed that the heat transfer rates are more limiting than the mass transfer rates. In order to increase the throughput that can be achieved in a kiln, it would be necessary to take special measures to enhance the heat transfer rates into the mass of reacting material. One such a measure is to pre-form the mass of reacting material into thin-walled, hollow brick shapes prior to introducing it into a kiln. Depending on bed depth, temperature and N2/CO ratio, required residence times in the high temperature zone of the kiln can vary between about 6 and 10 hours. Keywords Titanium dioxide, titanium nitride, carbo-thermic, reduction, ilmenite, slag, tunnel kiln, residence time.

Jan 1, 2011

By D. M. Mubita

Dilution reduction is one of the areas that offer metal mines an opportunity to increase revenue and reduce costs, resulting in enhanced profits. Effective dilution control programmes require interaction on a multi-disciplinary level. This paper outlines recent initiatives undertaken at Konkola Mine to reduce dilution and increase revenue. The increase in revenue arising from reduced dilution and high factors between in situ and delivered to mill grades were quantified and amount to close to U$ 1.0 million per one per cent improvement in grade factor at a 75c/lb copper price. Sources of dilution from open and in?stope mining methods practised at the mine were identified and a multi-disciplinary dilution control forum set up to control these. Among the major achievements were the introduction of low dilution in-stope mining methods; the introduction of Gemcom geological and mining planning software to replace traditional pencil and paper methods, leading to better in situ estimation and production planning; enhanced control in open stopes through dilution awareness among mining production personnel; location of critical secondary development ends in correct positions; enhanced blast hole control; tracking of development waste by metal tracers and monthly tally; implementation of a cavity monitoring system to check over-breaks in open stopes; and setting up of a stope history database. The results from the cavity monitoring system showed that stopes with over-breaks of 5 metres or less could be controlled to break along the hangingwall contact.

Jan 1, 2005

By W. I. van Drunick

AngloGold Ashanti Metallurgy has recently been involved in the successful installation of intelligent, expert control systems on the milling circuits. The benefits of expert systems in these highly interactive circuits are obvious. Existing comminution tools, which have been developed and can now be incorporated into online control, include improved modelling techniques and understanding, robust and competent simulation methods, sampling techniques, and optimization methods. The minerals processing industry has seen the benefits of predominantly research-based centres turning their focus to commercial applications of comminution circuit modelling packages, which in turn can be utilized within expert control systems. Expert mill control has been successfully installed at AngloGold Ashanti South Africa?s Mponeng and Kopanang Gold Plants. Expert control has also been installed at AngloGold Ashanti?s West African Sadiola Mine operation. The implementation of the systems has produced a number of positive outcomes. Plant surveys usually result in the identification of sub-optimal areas, and the control philosophy is then configured to ensure that these areas (along with the entire circuit) are optimized and maintained. Outdated PID loops have generally resulted in oscillatory control with large amplitude deviations from set-point. Significant improvements in SAR Metallurgy operations have been realized, firstly through achieving stability in the load and cyclone control, and secondly through online identification and implementation of optimized set-point conditions for mill mass, discharge density, etc. Soft sensors are configured to accurately estimate parameters that were historically not measurable, viz. breakage rate, mill load condition, onlinekWh/t-75 microns, mill discharge density and cyclone overflow grading. The Mponeng Plant system achieved circuit stability and improved overall grind. The Plant was able to pay back the control installation after 3 months, based on the additional recovery obtained from the finer grind. The system at Kopanang Plant has also resulted in enhanced plant recovery as a result of a finer grind and a lower residue gold content. The payback for this system was calculated at approximately 6 months. AngloGold Ashanti Metallurgy is currently expanding the installation of expert control to its other operations. It is also evaluating the performance of various suppliers of advanced control systems.

Jan 1, 2005

By M. G. Senyur

This study aims at investigating the structural characteristics of backfilling material. In this regard, spatial arrangement of solid particles and associated voids in a unit mass of coal mine refuse as backfilling material were tested. The materials were produced from coal mine refuse of Zonguldak Colliery, Turkey. The experimental procedures were developed to determine their void ratio (or its equivalent porosity), bulk density and the shape properties of constituent particles. The orientation fabric and the co-ordination number were the other two fabric elements determined. The filling materials were sieved and their particle size distributions were found. The results obtained by experiments were related to the particle size distribution parameters, namely, the coefficient of uniformity and the effective size. It was concluded that mean value of void ratio is correlated with coefficient of uniformity. The standard deviation of porosity as an index of fabric heterogeneity is clearly correlated to effective size. By an original experiment, the frequency distribution of coordination number was observed as binomial in uniformly graded materials. Also, the co-ordination numbers of test mixtures were calculated by the Marsal method and results obtained showed a good correlation between the minimum particle size and number of contacts per unit area.

Jan 1, 1998

By M. Q. W. Jones

This paper presents a compilation of physical properties of rocks from the Bushveld Complex. The database consists of more than 900 measurements each of thermal conductivity and density. The data are well distributed from localities around the Complex and most rock types are well represented. Thermal conductivity and density are shown to vary widely in the ranges 1.8-4.2 W m-1K-1and 2600-4200 kg m-3respectively. Although only 190 heat capacity measurements are available, this parameter is quite uniform for most rock types present, 800-900 J kg-1K-1, except for chromitite, which has a lower average, 750 J kg-1K-1. Rocks encountered in deep platinum mines are particularly well characterized and this has important implications for prediction of mine refrigeration requirements. The heat flux into a semi-infinite region with properties typical of the Bushveld Complex as a function of time is substantially lower than an equivalent model for the Witwatersrand Basin.

Jan 1, 2015

By A. Patri, D. S. Nimaje

Wireless sensor networks and wireless communication systems have become indispensable in underground mines. Wireless sensor networks are being used for better real-time data acquisition from ground monitoring devices, gas sensors, and mining equipment, whereas wireless communication systems are needed for locating and communicating with workers. Conventional methods like wireline communication have proved to be ineffective in the event of mine hazards such as roof falls, fires etc. Before implementation of any wireless system, the variable path loss indices for different workplaces should be determined. This helps in better signal reception and sensor node localization, and also improves the method by which miners carrying the wireless devices are tracked. This paper proposes a novel method for determining the parameters of a suitable radio propagation model, which is illustrated with the results of a practical experiment carried out in an underground coal mine in southern India. The path loss indices, along with other essential parameters for accurate localization, have been determined using the XBee modules and ZigBee protocol at 2.4 GHz frequency.

Jan 1, 2015

By K D. Wilkes

The WEMCO Heavy Media Drum Separator was first introduced by WEMCO in California in the 1940`s, initially from their base in San Francisco and later when the company moved to Sacramento. The WEMCO Company became a part of EIMCO Process Equipment in 1985, and in 2002 EIMCO became a part of the GL&V Group when Dorr-Oliver EIMCO was created. Throughout this period of time the WEMCO Drum has been installed on a variety of different applications and is now operating at the heart of many of the world?s largest Minerals and Coal Processing Plants, as well as being used by many smaller producers and metal re-cycling operations. This paper looks at the practical aspects of using WEMCO Drums in a representative range of processing applications.

Jan 1, 2006

By R. E. Wilmot

This paper is based on the experiences, over many years, on the part of numerous authors in the South African mining industry and that of the hot dip galvanizing process and its application as a corrosion protection system. The paper sets out the extensive development, financial resources and stringent operating requirements of the South African mining industry. After many years of research and operational experiences, hot dip galvanizing and when necessary, duplex systems, have been found to meet the demanding requirements of this particular industry. The paper sets out the requirements from the standpoint of corrosion criteria and is followed with a practical example; ?case history? where the corrosion protection properties of hot dip galvanizing are demonstrated. This case history traces the early investigation of the expected corrosive conditions to be encountered in a new mining operation (now 10 years on) and concludes with two follow up visits to the mine in order to examine actual performance of the corrosion protection system after ten years in service.

Jan 1, 2006

By C. Musingwini, A. S. Nhleko

"Since the Global Financial Crisis (GFC) in mid-2008, capital has been more difficult to access. Mining projects must contend with projects from other industries for scarce capital. A decision to invest available capital in mineral projects requires that valuation be conducted to assess the expected return on the projects. The discounted cash flow (DCF) analysis is generally applied for the valuation of mining projects, whereby future cash flows are discounted to present value using an appropriate discount rate. The discount rate significantly affects the outcome of a valuation. Economic and finance theory provides tools to calculate discount rates. The discount rate must account for factors such as the risk and stage of development of the mineral project; hence the appropriate discount rate to utilize in a project is often a subject of debate.The discount rate is the weighted sum of the cost of debt and equity. There are several methods for determining the cost of equity. This study considers the commonly applied Capital Asset Pricing Model (CAPM) and Gordon’s Wealth Growth Model because of their simplicity and availability of parameters required to estimate the cost of equity. This study explores how differences in the cost of equity obtained by these two methods can be explained for a mining environment. Data for empirical analysis were collected from the I-Net Bridge, McGregor BFA, and Bloomberg databases. It was found that Gordon’s Wealth Growth Model provides better estimates of the cost of equity compared to the CAPM under depressed market conditions. Therefore, this research recommends that Gordon’s Wealth Growth Model be used to estimate the discount rates for mining projects during periods of depressed market conditions."

Jan 1, 2016

By A. P. N. Sutherland

Pipelines for transporting high concentration slurries are often designed using methods applicable to homogeneous non-Newtonian laminar flow. Many industrial slurries though comprise coarse particles in a non-Newtonian carrier fluid, and existing experimental evidence from tests with such slurries demonstrates that they are not homogeneous. Under laminar shear conditions the coarse particles settle, even in statically stable carrier fluids. To understand this better, the Institute of Materials Science and Technology (IMST) at Cape Peninsula University of Technology (CPUT) is conducting ongoing research into the flow of these high concentration non-Newtonian settling slurries. Since pressure gradient and flow rate measurements alone are insufficient to adequately model the flows, an electrical resistance tomography (ERT) instrument developed by the University of Cape Town (UCT)was incorporated into the pipe test loop to determine pipe cross-section concentration and velocity profiles. The software developed to do this is modular and allows different image reconstruction and cross-correlation algorithms to be implemented and tested without significantly changing the rest of the application. At a total frame capture rate of 566 frames/sec a 2.67 GHz Intel Celeron processor with 500 MB of RAM is fast enough to calculate and display velocity profiles in ?real-time? at an update rate of one profile every two seconds. Examples of experimental concentration and velocity profiles obtained using the system are shown and some proposed improvements/extensions to the system are listed.

Jan 1, 2008

By E. A. van Wyk, M. R. de Villiers

"Mining companies strive to increase and maintain production, while simultaneously remaining competitive in the global economy. Furthermore, they must ensure workers’ safety and maintain good safety records. The use of virtual reality (VR) facilitates the development of tools and systems for various purposes that can improve knowledge and understanding of the work environment. VR is a rapidly growing technology that uses the ever-increasing power of computing to simulate real-world and imaginary environments and situations with a high degree of realism and interaction. The availability of 3D modelling tools and simulation programming engines that work effectively with a mid-range desktop PC and standard 3D graphics card, make VR technology viable and attractive for mainstream training applications. The design, development, and implementation of interactive VR training systems is proposed as an innovative approach to augment safety training. However, in order to assess the impact of such VR training systems it is of particular importance to determine the effectiveness of the design of such systems. This article proposes an evaluation framework for this vital purpose. This framework comprises criteria to assess VR training systems, specifically relating to usability, instructional design, VR systems design, and mining industry context-specific aspects. Although the framework was developed as an evaluation tool to assess effectiveness of the design of such systems, it can equally well be used as a set of design principles to inform the design of VR training systems for mining. IntroductionMining in South Africa has been the main driving force behind the history and development of Africa’s richest and most advanced economy (Coka, 2012). The South African mining industry is frequently criticised for its poor safety record and high fatality rate (Stoddard and Skweyiya, 2016). Inadequate or insufficient training is often cited as a root cause of accidents (Van Wyk and De Villiers, 2009; Tichon and Burgess-Limerick, 2011). Virtual reality (VR) is a rapidly growing technology that utilizes the ever-increasing power of computing to simulate real-world and imaginary environments and situations with a high degree of realism and interaction (Webber-Youngman and Van Wyk, 2013). VR is currently being used or investigated as a training solution in a variety of industries. VR technology has developed rapidly and costs have fallen to levels where it can now be considered for mainstream training applications. The availability of 3D modelling tools and simulation programming engines that work effectively with a mid-range desktop PC and a standard 3D graphics card, make VR even more attractive to mine training centres (Van Wyk and De Villiers, 2009)."

May 1, 2019

By S. Thorley

In engineering design of operator?s compartments, in underground mining equipment, ergonomics principles are often neglected or not given the full recognition they deserve. This paper defines ergonomics, applies it to machinery in an underground mining environment and describes the ergonomics analysis undertaken during the design phase of an EJC extra-low-profile mining loader. Encompassing the design of the operator?s compartment of this new loader, this paper illustrates the importance of ergonomics principles within the collective design process, ensuring that it is fully integrated into the design approach. An ultimate aim of this study is to ensure that all future designs follow this route to guarantee not only the outcome of a highly efficient, cost-effective and productive machine but that it is also takes the human factor into account, not only in maintenance but also in operation. Maximizing comfort will have the ultimate outcome of actually increasing productivity.

Jan 1, 2006

By F. X. Prins, L. R. Nelson

Tight control of electrode paste additions, hard and soft paste levels, baked zone position and electrode temperatures are integral to superior Söderberg electrode management practices. Paste addition is typically effected through briquettes, cylinders or large blocks. Each electrode paste form has its advantages and disadvantages, but probably a more crucial element from an electrode control perspective is the frequency and amount of electrode paste addition into a Söderberg electrode column. The detrimental effects of excessive soft paste levels leading to Stokes? Law segregation of paste in the electrode column are well documented, while several operators have effectively implemented the use of electrode thermocouples to monitor paste temperatures and automated slipping algorithms to control baking conditions within electrodes. Somewhat less well appreciated are the negative influences of inadequate soft paste levels, especially when coupled with excessive paste cylinder or block additions and resulting high hard paste levels. The alternative of insufficient hard paste levels and associated overheated electrode paste must also be considered, and can contribute to paste segregation directly. This condition also has the potential to generate gas mixtures in the electrode column that are concurrently a potential health hazard, while being prone to spontaneous combustion. Results of industrial trials on electric furnaces using Söderberg electrodes in a variety of applications from ferrochromium, to ferromanganese and even platinum-bearing base metal sulphides smelting are presented to illustrate the influence of paste loading practices on the dynamics of hard and soft paste levels. Possible electrode failure mechanisms attributable to inadequate paste level control will be discussed through some industrial examples. Suitable paste loading practices to mitigate the risks of inappropriate paste levels and associated electrode incidents are presented.

Jan 1, 2004

By A. H. Onur

Many factors govern the size and shape of an open pit, and these must be properly understood and used in the short and long-term planning of any open pit and quarrying operation. The importance of each factor will depend on the particular project, but the geology, grade, and localization of mineralization, extent of the deposit, topography, property boundaries, production rates, bench height, pit slopes, road grades, mining costs, and cut-off grades are key elements of open pits. This paper discusses the work done on the above parameters in order to provide an optimal production plan for a limestone quarry and clay deposits that provide raw material for a cement factory in Turkey. Soke cement factory has 1 400 000 tons of clinker capacity and is located on the western part of Turkey, in the province of Aydin. It is one of the largest facilities in the cement sector in terms of capacity, and it has a large advantage over facilities because the location of the factory was chosen to obtain the raw materials necessary for cement production within very short distances. However, the old reserves that supplied limestone to the factory had been reported to have run out, and therefore new limestone reserves in the same province have been investigated over the years by experienced geologists. From surface samples, high MgO content was reported in the neighbourhood of limestone formations with high dolomatization; hence, other alternatives were taken into consideration. One alternative with better chemical composition had been found 24 km away from the factory, but the haulage cost of limestone was unacceptable for the factory due to high diesel prices in Turkey. The maximum allowable MgO content in the pre-mix feed to a rotating furnace is 2.5% MgO content in pre-mix from both limestone and clay deposits. The clay deposits belonging to the cement factory have higher MgO content than the limestone deposit, and therefore this quality problem was taken into consideration first, instead of transporting material from 24 km away. This study gives the details of work done to evaluate both the clay and limestone deposits, statistical analysis performed on core samples taken from drill holes, mathematical modelling for both sites, and most importantly of all, in-pit homogenization work that reduced the pre-mix MgO content. As a result of this study, the profitable limestone quantity has been improved in order to serve the cement factory over a projected 25 additional years without using any material from the close deposit.

Jan 1, 2008

The spatial distribution of copper grades at the Mansa Mina project is highly variable due to the presence of high grade copper/silver/arsenic breccia bodies. Copper grades within the breccia bodies tend to average about 4.5% copper while grades in the surrounding stockwork average about 1.0%. The breccia is known to occur in the vicinity of significant controlling structures, however, the outline and therefore the thickness of the bodies are far from regular. Due to the high grade of these bodies a significant proportion of the value of the project is derived from the breccia tonnages. The irregularity in the outlines/thickness translates into an uncertainty in the breccia tonnage and therefore in the value of the project. Acknowledging the economic importance of the breccia bodies and the risk associated with the breccia tonnage uncertainty, significant additional drilling has been proposed to both understand the spatial distribution of the breccias and reduce project risk. The costs associated with this additional drilling are not inconsequential; thus, a reasonable question is ‘what value is derived from this additional drilling’? To obtain an answer to this important question, a simulation approach is applied. First the deposit is simulated using the existing drilling and the uncertainty in the resource is defined. Next the proposed drilling program is simulated and the simulated data are added to the existing data. Using this expanded data set a second simulation of the deposit is created and once again the uncertainty in the resource is defined. Using this approach, the reduction in the uncertainty in the resource can be determined. To convert this reduction in uncertainty (or reduction in risk) in the stated resource into a dollar value, a method of defining the increase in the project rate of return necessary to account for risk is presented. Using the two different rates of return, the difference in project NPV and hence the value of additional drilling is determined.

Jan 1, 2003