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"Recognising that the mining industry is wedded to the break-even cut-off grade rather than a cut-off grade that optimises value, the author examines some perils and pitfalls in the use of break-even grades that lead to what the author calls ‘negatively geared ore reserves’.Negatively geared ore reserves occur when a portion of the ore reserves actually has a negative value and is effectively being subsidised by the more profitable portion of the ore reserves. This situation is generally difficult to detect with the level of information available to the public investor. The ore reserves can still be quite profitable in total, but now possess a level of risk that may not be appreciated.The risk profile (financial risk) of a negatively geared ore reserve is far greater than for a non-negatively geared ore reserve. Like a negatively geared investment property in a falling property market (for readers familiar with the Australian tax minimisation investment strategy), when the price of a commodity falls, a company that possesses a negatively geared ore reserve loses value at a magnified rate relative to a company that has a neutral or positively geared ore reserve. In the extreme case of a major commodity price reduction, as happened with the gold price in mid-2013, the negatively geared ore reserve can easily become negative value in total, not just in part.The negatively geared ore reserve is sometimes intentional – for instance in order to increase published ore reserve tonnages and meet the CEO’s key performance indicators – but is also often unintentional, resulting from various errors in the break-even calculation. Common errors in calculating a break-even grade include using fixed metallurgical recoveries, not including allowances for ideal laboratory versus real plant results, ignoring available operational data and using modal rather than mean parameter values in cost and performance calculations.This paper examines a common value distribution profile in many ore reserves and the effect of common break-even grade errors on this profile.CITATION:Poniewierski, J, 2016. Negatively geared ore reserves – a major peril of the break-even cut-off grade, in Proceedings Project Evaluation 2016, pp 236–247 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

By B Morey, J Gordon, P Mackenzie

Mount Tom Price Mine is peerless amongst Rio Tinto iron ore resources around the world. It has provided Hamersley Iron with premium quality, high lump yield haematite ore over the last four decades. The Brockman type bedded ore, containing bands of haematite and shale of varying thicknesses has been traditionally bulk mined to either high-grade or low-grade based on alumina cut-off grades. As open pit mining has progressed deeper into the orebody approaching the keels of the megastructure, increased structural complexity, chemical and physical variations in the ore, unfavourable ore presentation and reduced blending options have become an issue for grade control and may have serious impacts on product stockpiles. The grade blocks and boundaries must be accurately defined according to geological contacts and where identified, selective mining may be applied. Therefore in-pit geological mapping is the definite and ultimate guide to achieve target grades and grade predictions. Under this scenario, it is absolutely vital that the mine geology team ensures this geological knowledge is passed onto the related departments including mining crews as well as to the short- and long-term planners.

Jan 1, 2002

By K Hskansson

In earlier studies along a mining region recipient (the river VormbScken, northern Sweden), the fraction of certain trace metals recovered in the particulate phase has been found to increase with increasing concentrations of particulate iron. This study was conducted to see if the pattern could be reproduced by adding minor amounts of ferrous iron, simulating groundwater inputs. When the iron is oxidised in the near neutral river water, it will form iron oxyhydroxides and precipitate. Trace metals may be either co-precipitated along with the iron, or adsorbed onto the freshly formed precipitates. If this is the case, such a mechanism may be incorporated as a part of a final polishing step in a mine drainage treatment system based on natural attenuation processes. The experiments were performed at 0¦C and 22¦C, on authentic river waters collected during the winter and summer of 2002, respectively. In order to investigate the influence of particles and bacteria initially present, filtered river waters (4 solution were added to the experimental beakers, increasing the iron content of the waters by 0 - 1.5 mg/L. The oxidation and precipitation processes were followed by means of filtration (0.2 ¦m) for up to seven days. In order to be able to compare the experimental results with the actual field situation, on both experimental occasions, surface water samples were collected also from three stations situated along the river. The samples collected were analysed for iron, calcium, and trace metals by AAS and ICP-MS. The iron oxyhydroxides formed in the experiment did not influence the partitioning of As, Cu, and Pb to the same extent as the particulate iron encountered along the river appeared to do. Cd and Zn were recovered mainly in the dissolved (

Jan 1, 2003

The New Southern Railway (NSR) involves the excavation of approximately 10 km of single bore tunnel from Tempe Reserve, Tempe, to Prince Alfred Park (PAP). PAP is located just south of Central Railway Station in SydneyÆs Central Business District (CBD). From Tempe Reserve the alignment takes the tunnel under Sydney Airport including the main north/south runway. Sydney Airport is approximately 8 km south of the CBD. The NSR is being constructed by a private group, the Transfield Bouygues Joint Venture (TBJV). Transfield is a major Australian contractor and the French contractor, Bouygues, is providing the soft ground tunnel construction expertise and is also responsible for the design of the concrete segmental lining. This paper sets out to present in some detail the issues involved in tunnelling under the airport and in particular under the north apron, the main north/south runway and the new elevated roadway. The paper concentrates on these three areas on the airport with an emphasis on the following. The risks involved and measures taken to minimise the risks in tunnelling under the International Terminal north apron (with Jumbo Jets parked immediately above). Secondly, settlement predictions, settlement and runway operation criteria and the actual settlements that have occurred on the main north/south runway. Finally, the criteria that was developed during the construction of the deep bored piers for the elevated roadway at the Domestic Terminal as the TBM passed through this area of construction activity.

Jan 1, 1999

By H Bruyn, K Ehrig, V Liebezeit, A Robertson, M Smith, D Grant

"The Olympic Dam geometallurgy program has generated a large quantity of data that has been used to create a geometallurgically enabled block model. An ongoing challenge is to convert data into usable information and embed geometallurgical practices into resource model development and mine planning to assist with the identification of opportunities to maximise value.This paper will discuss the methods used to disseminate geometallurgical information throughout the planning life cycle including data extraction methods from the geometallurgy acQuire database, and the inclusion of a geometallurgy module in the Olympic Dam Stope Reserves database. The use of geometallurgical information in short-, medium- and long-term mine design and scheduling, including its use in grade descriptor development and stope value assessment tools will also be presented. The detail of development of specific geometallurgical models is outside the scope of this paper.At Olympic Dam, the incorporation of geometallurgical capability within the long-term planning team, traditionally the domain of mining engineers, has proved essential in broadening the base of geometallurgical knowledge as well as focusing geometallurgy resources on value-adding areas while providing a holistic risk based long-term plan.CITATION:Liebezeit, V, Ehrig, K, Robertson, A, Grant, D, Smith, M and Bruyn, H, 2016. Embedding Geometallurgy into Mine Planning Practices – Practical Examples at Olympic Dam, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 135–144 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By C K. Boafo, J Visser

Obuasi Mine in Ghana, with more than 100 years of mining history, developed from a surface operation into a deep >2000 m underground gold mine. The challenge is to extract value from narrow veins left after extensive mining in the wider ore zones of the mine. Since the merger of AngloGold and Ashanti Goldfields in 2004 the mine strives to achieve optimum extraction through an integrated Mineral Resource management process from geological modelling, resource evaluation to mine design and scheduling. The shear hosted gold deposit displays complex secondary shears of variable thickness and continuity. There is an ongoing process of changes taking place in the way that geological modelling and resource estimation is done. Recent developments include the use of computerised systems that support the whole resource management chain from resource modelling to reserve optimisation. The change in thought and technology now allows for targeting narrow veins previously ignored in optimisation and mine design since moving into mechanised mining. The increased knowledge and confidence in the resource models now allows for flexibility in mine design, selection of mining method and scheduling and extraction of the reserves. The focus area for change is the way the orebody is evaluated and extraction designed. Since 2005 major changes were made to the process. This paper considers the historical approach of resource management. It looks at the individual process changes and qualifying the way ahead.

Jan 1, 2008

By Fabjanczyk M. W

A limitation to present theoretical roof reinforcement design methods is the inability to derive accurate and quantitative information about the roof rock condition and the action of reinforcement at various excavation stages. To obtain the information required to assess roof rock stability, detailed monitoring of the in-situ behaviour of reinforcement and roof strata is required. Reliable instru- mentation and techniques have been developed for use in underground coal mines to identify the geometry and magnitude of displacements occurring in roof rock and the forces generated in reinforcement. The use of such instrumentation allows an accurate assessment of the in-situ capability of reinforcement and the mode of reinforcing action developed. In-situ monitoring can supply data required for the practical design of reinforce- ment and assess the potential stability of current designs. The use of such data together with mine wide appraisal of rock and stressfield considerations, can allow roof reinforcement to be designed on the basis of a predicted roof Response.

Jan 1, 1986

By Egan J. R

Changes have recently been applied to the Sullivan Concentrator lead and zinc circuits to treat fine-grained ores which make-up the majority of ore reserves in the mine. Pilot plant testwork conducted in 1990 - 91 indicated that concentrate grades would be substantially improved by reducing the particle size (Pao) of the lead from 38 to 15 ¦m and the zinc from 45 to 24 ¦m. Circuit revisions involved installation of major new equipment including: two 600-kilowatt Vertimills for regrinding, a four metre diametre column flotation cell and a four metre diameter hyperbaric pressure filter for dewatering. Duties of the existing regrind mills were Reassigned.

Jan 1, 1993

By G Wyartt

In the Pilbara region of Western Australia, an iron ore mine is undertaking a high wall cut-back to improve stability and allow access to deeper ore deposits. Several sections of the wall have been classified low factor-of-safety due to unstable localised geology, and therefore an engineered approach to vibration critical blasting was required. The use of electronic detonators allowed multiple signature (seed) holes to be incorporated into a production blast adjacent to the low factor-of-safety area, therefore providing baseline vibration data to be used for future modelling with the added advantage of eliminating unnecessary pit closure downtime typically associated with a signature hole program. All subsequent blast patterns also incorporated multiple signature holes to provide additional data and allow continual updating – and therefore improved accuracy - of the blast prediction model. Electronic detonators and blast initiation systems were combined with advanced blast vibration modelling software to produce optimal timing sequences with predictable vibration outcomes. Although minimising vibration was the primary focus, blasting induced frequency was also a concern for the project team and therefore initiation sequencing was optimised to also avoid undesirable frequencies. Minor variations in ground factors (vibration transmission and attenuation) were noted, and therefore justified the inclusion of regular signature holes which allowed continual vibration model updates. Blasting results produced vibration and frequency measurements within allowable limits and closely resembled the predictive model. These positive results were achievable through the combination of electronic detonators, advanced modelling software and good onsite practices by engineering and on-bench teams alike. This project will remain ongoing as the pit progresses to deeper benches, and therefore the same methodology will be applied; quality and continual data collection, the use of electronic detonators, and optimisation via advanced vibration and frequency modelling software. CITATION:Wyartt, G, 2018. Vibration control blasting for low stability final walls, in Proceedings The Fourth Australasian Ground Control in Mining Conference (AusRock), pp 504–510 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 30, 2018

By Rivers CJ

The Brolga deposit is a Ni-Co enriched laterite, formed over intensly serpentinised peridotites of the Marlborough Block. Basement lithologies at Brolga consist predominantly of serpentinised dunite, with lesser massive serpentinite shear, gabbro and harzburgite. Investigation of the deposit has defined 17 different varieties of saprolite, ferralite (limonite), and ferricrete. Different combinations of these varieties form three distinct lateritic associations, the Hard, Soft and Dyke Associations. Recognition of key textural and mineralogical features in each association, an understanding of basement geology, and an awareness of current climatic conditions, suggest that: 1. both the Hard and Soft Associations have formed under relatively dry climatic conditions; 2. the Soft Association reflects much poorer groundwater drainage than the Hard Association; and 3. the Dyke Association has formed from a gabbroic basement, and has also been affected by restricted groundwater drainage, caused by poorly permeable marginal serpentinite shears.

Jan 1, 1996

Developing and operating mines in developing countries is never dull, but continuously challenging in terms of geology and terrain, geography and location, culture and land tenure, environmental and social issues, fiscal regimes and in some cases political risk. In addition, the rapidly changing nature of the communities with little understanding of the nature of mining at the community level requires us to continually manage issues affecting project development and mine operations with greater sensitivity. In frontier regions, people skills can become more essential than technical skills, particularly in dealing with indigenous people. Hence, managing a mining project requires a huge relationship effort.Effective communication with communities of different cultural background and proactive management of issues influencing community aspirations and desires requires not only new skills but also creativity with new concepts on how to deal with social issues under a different cultural context. The involvement of government agencies and NGOs is an important ingredient to creating understanding and collaborative approaches to common social issues. Maintaining stakeholder relationships pays in the long-run and is a useful exercise in getting information feedback from the wider community.

Jan 1, 1997

After many years of studying the rock mass gravitational flow phenomenon, it is well known that moisture conditions may change the mechanical properties of the caved and broken material, causing different problems at drawpoints. One specific problem, perhaps one of the most unpredictable and uncontrollable, is that of mudflows (also known as mud rushes). The aim of this paper is to show how to establish optimal extraction rates at a drawpoint in order to avoid the closure of that drawpoint due to the high risk associated with having high-technology automated loaders working in the production level of panel cave and block cave mines prone to mud flow events. This optimisation should take into consideration critical restrictions related to mine planning, such as the need to reach the planned production. It is also important to consider the correct design of surface (in the subsidence zone) and underground drainage systems to prevent groundwater or rainwater entering muck piles, filled stopes, galleries or open cuts. With these considerations, and keeping in mind other factors that should be included in a sensitivity analysis of variables, it is possible to find a correlation between the percentage of extraction from a drawpoint and the possibility of occurrence of a mudflow. Finally, this paper proposes different draw strategy techniques in order to mitigate potential mudflow issues on a caving production level.

Sep 26, 2011

By A G. L Pratt, J R. Grant

Mining companies face the ongoing challenge of sustaining and growing production. This paper outlines business investment concepts to grow reliable returns on investment from a portfolio of choices by:improved visualisation, diagnosis and tune up of the investment pipeline (pipeline management); good corporate decision making (governance) to select the right project mix, risks and sequence; and delivery strategies to enhance and reliably execute projects.

Jan 1, 2006

By Watkins JR

The educational system is a dynamic; a flow resource that can be significantly shaped, changed and - refined by educationists. This paper analyses these various facets of geo- science education in Australia. The Australian educational philosophy is essentially a laissez- faire model, a free market approach without any real government or professional directive or stratagem. Students are therefore free to choose their own educational pathway dependent only upon their ability and the access to courses. Geological education at the tertiary level in Australia is described and critically analysed. There is a real need for a rationalisation of geological education in Australia, and this rationalisation should include not only the number of courses offered but should also aim to fully define both the philosophy and purpose of geological education and the accreditation procedures for the Students.

Jan 1, 1986

Nippon Telegraph and Telephone Corporation (NTT) developed a new construction method (the M-2 method) that could drive a long, curved small-diameter tunnel (4>1.2 m) without human labor. This method employs the cast-in-place lining system, using quick-hardening resin mortar, so that it can greatly increase the driving distance and execute both long distance driving (longer than 500 m) and curved driving with a radius of curvature of 200 m. Furthermore, the central control system with a mini-computer in a vertical shaft enables all work in a small-diameter tunnel, i.e., excavation, lining, and transportation of excavated soil and materials, without human labor. NTT conducted several field tests and a Practical Application Test (P.A.T.) under a public road bearing great traffic. Good results were obtained and the practicability of this method was demonstrated. Therefore, from now on, NTT will apply this ii-2 method to drive telecommunication cable tunnels in urban areas. This method will also be applicable to constructing public tunnel facilities, such as for water, sewage, electricity and gas.

Jan 1, 1987

By Sudharto RT

Sulphides of Cu, Pb, and Zn occur in quartz veins associated with a quartz monzodiorite stock at Gunung Limbung, West Java. The mineralization was polyphase and occurred at depths of less than lkm. Wall- rock alteration is extensive and typically consists of an outer zone of propylitization and an inner zone of potassic (K-feldspar- rich) alteration. Sporadic argillic altera- tion is probably of supergene origin. A variety of elements were mobilised during hydrothermal alteration and Ba in particular shows mared enrichments in the potassic zone. Fluid inclusions in the vein quartz indicate that temperatures of mineralization were within the range 250-3900C and that two fluids with differing chemistry were involved. One fluid had high Ca/Na ratios and a low overall salinity, the other had low Ca/Na ratios and a moderate salinity. The former is probably of meteoric derivation, whilst the latter had a magmatic origin. Precipitation of the sulphides was probably brought about by mixing of these fluids.

Jan 1, 1987

Formed in 1965 to investigate the bauxite deposits on the Gove Peninsula, in the Northern Territory of Australia, Nabalco Pty. Limited undertook to determine the feasibility of establishing a mining operation and alumina plant of at least 500 000 tonne/year capacity. The drilling programme undertaken and the analytical methods, assumptions and criteria used to define practicably extractable bauxite are described. The ore characteristics and the interpretation of results used to evaluate the reserves are detailed. The operating techniques developed in mining ten per cent of the reserves and variations experienced between indicated and actual mining are examined and discussed.

Jan 1, 1979

By Lawson F

Narrowly sized samples of synthetic chalcocite (Cu2S) and covellite (CuS) were leached in oxygenated acidic sulphate-chloride solutions. Chalcocite leaches via a two-stage process, the first stage being much more rapid than the second. The apparent activation energies are 42.7 kJ/mol and 68.2 kJ/mol respectively, indicating that both stages are controlled by surface chemical reactions. The leaching of covellite is also chemically rate limited with an apparent activation energy of 77.0 kJ/mol. The shrinking core model is able to be used to describe the leaching processes of both copper sulphides. Over 97% of copper present in chalcocite dissolved in 0.5 M H2SO4i0.5 M NaCl solution under one atmosphere pressure of oxygen at 85¦C in three hours from particles 36 pm in diameter while only 85% of the contained copper in covellite particles 13 pm in diameter dissolved in the same solution under the same pressure at 90¦C in six hours. About 99% of the sulphide sulphur in chalcocite was oxidised to elemental sulphur while only 90% of sulphide sulphur was converted to elemental sulphur during covellite leaching. The mechanism proposed for the two-stage leaching of chalcocite particles is as follows: in the first stage, cuprous ions rapidly diffuse to the external reaction surface where they lose electrons and go into solution as a complex cupric chloride ion CuCl'. The second leaching stage begins when covellite is formed at the external surface. Copper again goes into solution as the CuCl* ion. The mechanism for leaching synthetic covellite is similar to the second leaching stage for chalcocite except that the leaching rate of synthetic covellite is substantially lower than that of the newly formed 'covellite'. Elemental sulphur formed on the particle surface retards the dissolution processes during both chalcocite and covellite leaching. The presence of chloride ions is necessary if essentially all of the copper from chalcocite is to go into solution. When no chloride ions were present, the leaching rate of both newly formed and synthetic covellite was almost zero. The main role of chloride ions in both chalcocite and covellite leaching appears to be to disrupt the passivation film of sulphur on the particle surface.

Jan 1, 1989

By Robertson A. D C, Cranfield L. C, Murray C. G

Most base and precious metal mineralisation in the Gympie Province is genetically linked to intrusion of branitoids of Late Permian to Late Triassic age. Most lodes are hydrothermal quartz and quartz-calcite veins at intrusive contacts, within either the granitoids themselves or the country rocks, and commonly associated with dykes. Other types of intrusive related deposits are disseminated porphyry type Cu, base metals in skarns, and Mo in quartz pipes and veins. Although the Late Permian-Late Triassic granitic intrusives can be subdivided in terms of age, it is not yet possible to relate deposits of particular metals or styles to granites of a specific age on a regional scale.Some significant mineralisation is not associated with granitic intrusions. This includes the Gympie goldfield, by far the largest known deposit within the Gympie Province. Gold occurs in quartz veins crosscutting Early Permian volcaniclastic sediments and also in NW striking fault zones. The source of the mineralisation is unknown. Gold and silver also occur in epithermal, disseminated and breccia hosted deposits within Late Triassic continental volcanics. Epithermal Hg mineralisation at Kilkivan may be related to Early-Middle Triassic volcanics.

Jan 1, 1990

Lateritic nickel ore occurs as a supergene or residual deposit as a result of the tropical weathering of underlying ultramafic rocks. The mineralisation may be as hydrated Ni-Mg silicates, like garnierite (silicate ore); or as hydrated Ni-Fe oxide (oxide) ore. Non-sulphide ore represents only 30% of the tonnage mined, but represents 85% of the total world's nickel reserves. A typical lateritic profile consists of 4 zones above the unweathered ultramafic parent rock: Zone 1: the "upper laterite" which is dark red-brown, porous and concentrically structured. It contains 0.2 to 0.8% Ni, 48.0 to 72.0% Fe, and 0 to 9.5% MgO. It is often capped by a ferricrete crust. Zone 2: the "middle laterite", which is red-brown to light brown and more porous than the above zone. It contains 0.8 to 1.5% Ni, 42.0 to 48.0% Fe and 0.5 to 6.0% MgO. Zone 3: the "basal laterite" which is yellow-brown to yellow-orange,

Jan 1, 1974