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By Gooday PE, Brech GE

Ore reserve categories used by Pancontinental Mining fall into one of three fundamental groupings: Geological In Situ Reserves Mining Reserves Production Estimates The first of these describes the total reserve within stated parameters without implication as to its mineability. The second is that part of the Geological In Situ Reserve which is considered mineable under a specific mining plan. The third is the Mining Reserve adjusted with appropriate dilution and recovery factors and thus represents the best estimate of the tonnage and grade of production. This practical three category system mirrors the standard steps traditionally taken in ore reserve estimation and readily conveys the basis of the estimates. An important, but secondary classification can be added to qualify the level of confidence in these estimates using the terms: Proved (or Measured) Probable (or Indicated) Possible (or Inferred) These terms can be applied to any of the fundamental groupings, but it is generally implicit that the level of detail required to produce meaningful Mining Reserves or Production Estimates would require the basic Geological Reserve to be at a Proved or at least Probable level of confidence. The application of these classification systems by Pancontinental is illustrated by reference to the Paddington Gold Project. The methods of calculation are described including the use of geostatistics. Reconciliations of actual production with predictions from reserves are carried out monthly and annually. To date there has been an excellent correlation with Production Estimates, based on both manual and geostatistical calculations.

Jan 1, 1987

By C. Mosoane

ERPM was formed in 1893 and as a result of its age, a large volume of data exists in a paper-based format and it was decided to electronically capture data in one of two critical mining areas?namely at Far East Vertical (FEV) Shaft Area (Lower Areas) and Hercules Shaft Area (Upper Areas). The life of mine is dependent on tonnage and grade from these areas. Geostatistical evaluation of the gold reserves has been applied on an ad hoc basis in the Hercules Shaft Area and on a continuous basis in the FEV area. This is the first evaluation using geostatistics that was performed on the Upper Areas. This paper is based on the premise that regardless of cut-off grades, geostatistical estimation (kriging) estimates and locates reserves better than ?traditional? methods e.g. polygonal method, inverse squared distance method and it endeavours to estimate and locate the high grade reserves in the Main Reef Leader of Upper Areas.

Jan 1, 2003

By W. P. Armstrong, O. Owens

"The process of arriving at the size and grade of· (a) a newly discovered body of mineralization, (b) a potential ore resource, (c) an orebody proposed for mining, or (d) the ore reserves in a mine, requires fundamental geological, and geometrical determinations as well as physical and chemical analyses. This paper outlines geological and geometrical features considered critical, in the authors' experience, in realistic reserve determination. These are discussed under the headings ""The Four Cs"". They include the Character, type or nature of the mineralization; the Continuity of various types of mineralization in the deposit; various key concerns in the Calculation besides the mathematics; and the Classification section which refers to basic considerations in classifying a mineral estimate. It is suggested that the responsibility for the calculation of a Resource or Reserve should be that of a geologist experienced in the ore type under review. Further, it should be the responsibility of the board of directors of the company owning the deposit to ensure that a sufficiently experienced person is chosen to carry out the process. IntroductionThe key issue of ore reserves is that they are intended as, a clear-as- possible statement of metal in place in a mineable orebody. Precise, widely understood definitions help convey understanding of the figures, but accuracy requires careful geological input before the calculation is made and a definition is applied. Many recent new mining operations in Canada have experienced serious shortcomings between original ore reserve figures and what was mined. This suggests deficiencies in the actual tonnage and grade calculated in advance of production. The authors suspect that much of the problem is due to a less-than-adequate outline of the orebody before calculating reserves for production or alternatively, treatment of grade and thickness data without regard to an orebody outline. Careful consideration of mineralization and ore continuity is one of the most important aspects of ore geology. Ore reserve calculation should be more than a mathematical exercise."

Jan 1, 1994

By Owen Owens, W. P. Armstrong

The process of arriving at the size and grade of: (a) a newly-discovered body of mineralization, (b) a potential ore resource, (c) an orebody proposed for mining, or (d) the ore reserves in a mine, requires fundamental geological, and geometrical determinations as well as physical and chemical analyses. This paper outlines geological and geometrical features considered critical, in the authors' experience, in realistic reserve determination. These are discussed under the headings "The Four Cs". They include the Character, type or nature of the mineralization; the Continuity of various types of mineralization in the deposit; various key concerns in the Calculation besides the mathematics; and the Classification section which refers to basic considerations in classifying a mineral estimate. It is suggested that the responsibility for the calculation of a Resource or Reserve should be that of a geologist experienced in the ore type under review. Further, it should be the responsibility of the board of directors of the company owning the deposit to ensure that a sufficiently experienced person is chosen to carry out the process.

Jan 1, 1993

INTRODUCTION The difference between a mineral inventory or mineral reserve and an ore reserve was discussed in the introduction to Chapter 10. The term ore reserve implied mineral in place that is capable of being mined at a profit. Potential profitability of in situ minerals is dependent upon several economic parameters in addition to grade estimates for blocks of the mineral

Jan 1, 1980

The South Junction deposit of St Barbara Mines Limited was discovered in 1989 by the geologists of Ross Atkins Mining.The deposit occurs in the lower part of the Gabanintha Formation of the Lukes Creek Group in the Mt Magnet -Meekatharra greenstone belt. Country rock is predominantly talc-chlorite schist. Gold mineralisation is associated with north-south shear zones, quartz-carbonate-fuchsite alteration of the ultramafic rocks and in particular close to deeply weathered quartz-albite porphyry. For a detailed description of the geology of the South Junction Deposit see Fiala (1992).

Jan 1, 1993

By Singer RP

The Latrobe Valley brown coal deposits are one of Australia's major energy resources with measured and indicated reserves amounting to some 162 billion tonnes. Economically recoverable reserves are estimated at some 65 billion tonnes, 47 billion tonnes of which are classified as available for mining (VBCC (1983)). These deposits contain one of the lowest grade fuels used anywhere in the world. Typical Net Wet Specific Energy values range from 6 to 9 MJ/kg. Despite the low energy value of the raw coal, the Latrobe Valley deposits represent approximately 90% of Victoria's indigenous non-renewable energy resources. Utilisation of this vast primary energy resource has been a key factor in the economic development of Victoria.

Jan 1, 1990

By Gelding P. W, van Herk H

The Cattlegrid copper orebody is a concealed thin, tabular sheet localised near an unconformity between two sub- horizontal Precambrian sandstone units. It extends over an area of 1,000 m by 500 m within a wider area of mineral- isation. The ore consists of complex sulphides and is neither massive nor disseminated. It consists mainly of irregular fillings in pore space developed between clasts in sandstone breccias, in fault zones and joints and along stratification planes. Its habit is unique amongst Australian base metal ore bodies. During the pre-development period ore was outlined by percussion holes but in studies leading to investment decisions ore reserves were manually calculated from intercepts and assay results of cores from diamond drill holes. The methods used for estimating reserves in the pre-production and production periods are described and evaluated by comparing mine production during the first five ore production years with the forecasts made.

Jan 1, 1979

Ore Reserves estimation for the two producing copper orebodies at Isa Mine, Mount Isa, Queensland is discussed. The principal estimation techniques used and discussed are first, a computer based inverse power distance weighted assay meshing technique, and second, a manual arithmetic averaging technique. The principles involved in these techniques are compared, and their areas of application indicated. A general comparison of the estimation of reserves with eventual production is presented.

Jan 1, 1979

The orebodies at Kambalda are complexly faulted, folded and intruded. It is realized that the ore reserve calculations will be wrong and steps are taken to minimise the errors. The calculations are a combination of computer data handling and manual input. Initially Geological Ore Reserves are calculated and then production data and experience are used to produce a Planned Mining Reserve. At all stages maximum professional judgement is incorporated. The basis of the calculation is the polygonal method of area estimation, and production reconciliations together with the style of data available indicate that it is a most suitable technique. It is also a tech- nique that is easily communicated to all levels from operators to management.

Jan 1, 1979

The reliable estimation of ore reserves in mineral sand deposits depends on drilling methods and assay techniques that have been specially developed within the industry. Improvement of these techniques is a continuing process, as variations within and between deposits are highlighted during the actual mining operation. Constant monitoring of metallurgical losses along with mineral production allows comparison of mineral tonnages accounted for by mining, with original calculated reserves. A review of ore reserves in the Jerusalem Creek field from scout drilling in the sixties, through mining in the seventies, shows the progression from understatement prior to mining, to the present when more than two thirds of the reserves have been depleted.

Jan 1, 1979

By LESTER W. STRAUSS

FOR fifteen months after the other dominions of the British Empire and the entire so-called sterling 11loc loosed the shackles that bound the111 to the gold standard, South Africa, giant among gold-producing nations, remained stubbornly attached to gold at the traditional ratio of 85 shillings in currency to one ounce of gold. But eventually even South Africa had to heed the dictates of trade and the obvious interests of its great gold-mining industry. In December, 1932, South Africa's currency severed its golden bonds. Today the South African pound is 011 a par wit11 the British pound.

Jan 1, 1935

By Armine F. Banfield

The Purpose of the Paper It is fitting that the first paper of a session on the Financial Aspects of Mining should be on the basic data upon which any financial discussion of a mining project must be based. The history of a mining project starts with exploration in an area considered geologically favorable for mineralization and culminates in the discovery of a body of valuable mineral material commonly known as a mineral deposit. Subsequently more detailed exploration establishes the approximate size, shape, tonnage and average grade of the deposit by surface and/or underground drilling, -surface trenching and/or underground workings. Some preliminary metallurgical testing and other studies, as required, are made at this time. Development work is then carried out to provide representative samples for determining flowsheet and metallurgical balances, preparing the deposit for production and establishing more firmly the grade and mining characteristics of the deposit. A feasibility study is then made of the engineering aspects of the project including the estimation of operating coats, the capital required to place the deposit into production, profit and return on investment. A valuation of the deposit

Jan 1, 1972

By Hugh K. Taylor

"With some justification, people have long complained about the indefinition of ore reserves. Perhaps they were led to expect too much; from former and easier definition practices in the once common underground mines with exposed and available assets, where the obsolete term 'ore in sight' was at least partly literal. But such mines have become rarer, and their underground development less affordable. For most projects, valuations and its definitions have thus been advanced from actual to prospective mines, leaving a very wide gulf between 'what is there' and 'what may happen to it'. This brings the double challenges of reduced geological and technical assurance and the protraction of economic uncertainties.This paper avoids the popular field of regional resources, being confined to what may possibly be mined within single or closely grouped deposits. For these, many estimates of tonnage and grade must be made, defined and declared long before assessment of feasibility; and the uncertainties of the latter make it an unsound base for defining the earlier quantities. Despite the best of intentions, implied or inferred promises may proveimpossible to honour.A simpler framework of definitions is suggested, to some extent reverting to an earlier dependence on supporting work rather than on opinions of economic assurance or future events that are more properly the functions of production and cash flow schedules."

Jan 1, 1994

By Owen Owens, W. P. Armstrong

Abstract- The process of arriving at the size and grade of: (a) a newly-discovered body of mineralization, (b) a potential ore resource, (c) an orebody proposed for mining, or (d) the ore reserves in a mine, requires fundamental geological, and geometrical determinations as well as physical and chemical analyses. This paper outlines geological and geometrical features considered critical, in the authors' experience, in realistic reserve determination. These are discussed under the headings "The Four Cs". They include the Character, type or nature of the mineralization; the Continuity of various types of mineralization in the deposit; various key concerns in the Calculation besides the mathematics; and the Classification section which refers to basic considerations in classifying a mineral estimate. It is suggested that the responsibility for the calculation of a Resource or Reserve should be that of a geologist experienced in the ore type under review. Further, it should be the responsibility of the board of directors of the company owning the deposit to ensure that a sufficiently experienced person is chosen to carry out the process.

Jan 1, 1993

Errors in ore reserve estimation can occur during drilling and sampling, sample preparation and analysis, geological logging and modelling, database construction, statistical or geostatistical evaluation, selection of economic parameters, selection of ore reserve method and assessment of mining constraints. Core sample recovery can be a major source of error, and it is proposed that the modelling of grade, metal accumulation and thickness should be accompanied by the modelling of core recovery (or core loss) so that for each ore block a weighted block recovery factor is obtained. This gives a good indicator of the reliability of a reserve estimate. It is suggested that a resource reliability rating (RRR) system be established to quantify what is meant by geological assurance and to combine this with an estimate of the precision of estimation as gained by geostatistical analysis. Proven and probable minable reserves would be those with an RRR better than 50% and a precision of estimation better than 20%

Dec 1, 1996

By H. K. Taylor

Ore reserves are inadequately defined. Geological reconnaissance and pre-feasibility mining work generate a broad range of valid tonnage estimates, many published for the benefit of various interests, who may view all figures as reserves. This work reviews the regular estimation of tonnages, grades and relevant factors for single deposits. A consistent framework of definition is suggested which, by conforming to the known structures of feasibility studies and long-range plans, avoids the pitfalls of over-categorisation and of unrealistic promises. Applications are based on North American experience but are intended for general use

Sep 1, 1991

By J. S. Wakeman

INTRODUCTION The primary purpose of comminution circuits in the mineral industry is to reduce an ore to a particle size that will permit separation of the valuable minerals from its gangue constituents. Wide variations in the mineral content and physical characteristics can and do occur throughout a given mineral deposit From the standpoint of their effects on the comminution characteristics of an orebody, these variations may not be identified by the normal sampling and analysis procedures utilized to delimit an orebody and to characterize its grade distribution. The proper design of a comminution circuit for a mineral deposit is very important to the success of that enterprise. It is also an expensive unit process both from the standpoint of capital and operating costs. It is, therefore, essential that any sampling program be designed to identify the variations that may occur that will affect this circuit. Because of the variety of comminution systems that are available, it is also essential that the sampling and subsequent evaluation program be sufficiently comprehensive to identify potentially inappropriate systems or flowsheets. It would be impossible to describe in a single chapter the techniques and approaches that should be utilized for sampling every type of orebody. Each orebody is unique and requires a sampling and testing program designed to its specific requirements for exploration, characterization and circuit design. The following is a general discussion of the guidelines to be used and considerations to be made in establishing such a program. SAMPLE SELECTION When sampling an ore deposit for the purposes of equipment and flowsheet selection for comminution, it is important that the sample composites for grind testing be chosen on the basis of how they will affect the comminution circuit rather than just how they might affect the subsequent metallurgical operations. For example, grindability, classification and liberation size characteristics are more important to the comminution circuit than ore grade. Mineral deposits may contain a multiplicity of ore types that can vary extensively in the dissemination of minerals and optimum liberation size requirements; and may also vary as much as 100% in ore hardness. The accumulation of samples for grind characterization should be done in such a way as to allow the identification of this variation. A proper mineralogical evaluation of the samples obtained to characterize an ore deposit can be a great aid in identifying the individual ore types within the deposit

Jan 1, 1982

By William C. Peters

The frustration encountered by exploration crews in connection with land acquisition could be graphed to show a correlation with the natural law that everything tends to become more so. Figure I shows a rather common, situation. The combinations of ingredients are almost limitless and the resulting brew is often poisonous to an exploration man. A single step, that of taking a series of deep soil samples is often delayed until some sense can be made from "floating" unpatented claims which are obscure in orientation as well as position, placer claims overlapping lode claims, location posts with empty Prince Albert cans, and claims with no apparent assessment work for ten years. Add to this some patented claims with¬out monuments, a state or federal withdrawal area which may or may not invalidate pre-existing claims, a loosely defined tunnel site, and some ranchers who understandably resent the separation of surface rights from mineral rights. The picture is familiar to exploration men. One approach to such problems is to ignore them until someone voices an objection -- but then an even more chaotic situation is likely to develop. Another practice is to stake new claims to cover all ground that is "open" at first glance and then find out if there are conflicts so that the new claims can be adjusted accordingly.

Jan 1, 1970

By A. D. Hoagland

There are large areas on all of the continents with environments which are favorable for deposits of zinc and lead of Mississippi Valley type. In the developed countries, these environments have for the most part been quite thoroughly explored for the near surface deposits, and it will be necessary to direct more effort to the search for deeper buried deposits from which much of our future production must come. The difficulties of exploration for deep ore of this type are many and formidable, but the area of permissive environments beneath deep cover is many times as great as the area of the known near surface ore districts. It is a reasonable assumption, therefore, that numerous deposits wait for discovery and development. The finding cost, however, is certain to increase, and it is essential that concepts and techniques of exploration be improved if we are to sustain a reasonably strong productive capability into the 21st century. Exploration for deeply buried deposits requires at the outset relatively large areas of favorable geologic environment. The favorable horizons must be within economic limits of depth for the exploration as well as for the mining techniques which are currently available; and there must be some condition, design or strategy which will assure the explorer a reasonable chance of obtaining maximum benefit from discoveries which he may make.

Jan 1, 1973