Mineral Resource and Ore Reserve Estimation PDF

Second edition, Monograph 30
MINERAL RESOURCE AND ORE RESERVE ESTIMATION

THE AUSIMM GUIDE TO GOOD PRACTICE
MINERAL RESOURCE AND

ORE RESERVE ESTIMATION
THE AUSIMM GUIDE TO
GOOD PRACTICE
MineralResource and
OreReserve Estimation
The AusIMM Guide to Good Practice
ISBN 978 1 925100 06 8
COPYRIGHT DISCLAIMER
The Australasian Institute of Mining and Metallurgy 2014

No part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form by any means without the written consent of the publisher.
The AusIMM is not responsible as a body for the facts
and opinions advanced in any of its publications.
FRONT COVER IMAGES

Right: An ecologist examining a coal mine site.
Centre: Photo courtesy of MMG. Image shows drill core samples from the Sepon mine in Laos.
Left: Photo courtesy of Gold Fields. Refer to paper by Gradim et al, page 242.
Published by:
The Australasian Institute of Mining and Metallurgy
Ground Floor, 204 Lygon Street, Carlton Victoria 3053, Australia
Contents
Chapter 1 | An Overview and Outline
Overview
J T Baldwin, J H Lew and

M F Whitham
Managing Risk in Feasibility Studies
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Common Sense and Good Communication Effective Team-Based

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JORC and the Canadian Institute of Mining, Metallurgy and Petroleum

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Overview The Resource Database
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Flow for Resource Estimation
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Geological Data Collection for Reliable Coal Resource Estimation
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Measurement of Bulk Density for Resource Estimation Methods,

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Collection of Geotechnical Data from Drill Holes
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Chapter 2 | The Resource Database
Chapter 3 | Geological Interpretation and Geological Modelling

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Overview Mineral Resource Estimation
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Estimation of Inventory Coal and Coal Resources
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Case Studies
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Drilling of Mineral Resources Towards Better Investment Decisions
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Chapter 4 | Mineral Resource Estimation
Chapter 5 | Non-Resource Inputs to Estimation of Ore Reserves

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Reserve Estimation
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Selecting a Mining Method for Metalliferous Orebodies
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Geometallurgical Guidelines for Miners, Geologists and Process

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Case Study Marketing of Industrial Minerals Iluka Resources
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Overview Ore Reserve Estimation
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Chapter 6 | Ore Reserve Estimation
Chapter 7 | Risk in Resource and Reserve Estimation

Overview Risk in Resource and Reserve Estimation
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Evaluating Resource Risk The Due Diligence Process
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Chapter 8 | Monitoring and Exploiting the Reserve
Chapter 9 | Classif ication and Reporting

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Appendix | The JORC Code 2012

The JORC Code 2012 Edition
863
Indexes | Author and Subject Index

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The Ore Reserve Estimation Process

Iterations of Technical, Financial and Risk Assessments
Exploration and
Data Collection
The Resource
Database
Geological
Interpretation
and Modelling
Statistical Analysis,
Mineral Resource
Estimation,
Classification and
Reporting
Modifying Factors
(Mining, Metallurgical,
Economic, Marketing,
Legal, Environmental,
Social and Government)
Risk and Sensitivity

Assessments
Ore Reserve
Estimation,
Classification and
Reporting
Monitoring the
Resources and
Reserves
Grade Control,
Production and
Reconciliation
Chapter 1 | An Overview and Outline

Overview
J T Baldwin, J H Lew and

M F Whitham
P L McCarthy
13
Common Sense and Good Communication Effective Team-Based Estimation and Classification of Mineral
Resources and Ore Reserves
J Vann, P R Stephenson,
S Jackson and G Pilger
19
JORC and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards Major Changes
and Developments for Competent Persons
J Coombes
33
HOME
Overview
J T Baldwin1, J H Lew2 and M F Whitham3
ABSTRACT
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2. MAusIMM, Geologist Study Manager, Independent Consultant, Corporate Technical Consulting, 7 Pisces Court, Donvale Vic 3111. Email: [email protected]
3. FAusIMM, Mining Engineer, Independent Consultant, Sheerline Investments, 17 Palm Court, Meikleville Hill Qld 4703. Email: [email protected]
INTRODUCTION
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Chapter 1|An Overview and Outline
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TABLE 1
Types of studies (after Bullock, 2011).
Author
Date
Level I
Level II
Level III
Taylor
1976
Preliminary
Intermediate
Feasibility
Hustrulid
Barnes (reported from

Australia)
Mackenzie
Bullock
Most common usage
1997
Conceptual
Preliminary
Feasibility
Resource calculation
Preliminary
Feasibility
Preliminary
Indicative
Definitive
Level IV
Basic engineering
Scoping
Preliminary
Detailed
Order of magnitude
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Bankable
2006
Scoping
Pre-Feasibility
Definitive
2011
Preliminary Feasibility
Intermediate Feasibility
Final Feasibility
Basic engineering
2000 to 2011
Scoping
Pre-Feasibility
Feasibility
Basic engineering
Basic engineering
13
Chapter 1| An Overview and Outline
TABLE 2
Observed accuracy ranges of capital estimates.
Type of study
Accuracy range (%)
Level 1 first study
-50 to +30
Level 2 second study
-27 to +30
Level 3 third study
-20 to +27
Level 4 basic engineering
-12 to +20
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TABLE 3
Causes of commissioning and operating problems.
Area of problem
Frequency (%)
Geology, Resource and Reserve estimation
17
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Mine design and scheduling
32
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Metallurgical test work, sampling and scale-up
15
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12
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J Vann1,2, P R Stephenson3, S Jackson4,5 and G Pilger6
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1. FAusIMM, Vice President Mineral Resources, AngloGold Ashanti, PO Box 6149, Swanbourne WA 6010. Email: [email protected]
2. Adjunct Professor, WH Bryan Mining and Geology Research Centre, The University of Queensland; Adjunct Professor, Centre for Exploration Targeting, The University of Western Australia;
Adjunct Senior Lecturer, School of Civil Environmental and Mining Engineering, The University of Adelaide.
3. FAusIMM(CP), Director and General Manager, AMC Mining Consultants (Canada) Ltd, Suite 202, 200 Granville Street, Vancouver BC V6C 1S4, Canada. Email: [email protected]
4. FAusIMM, Managing Director, Quantitative Group, PO Box 1304, Fremantle WA 6959. Email: [email protected]
5. Adjunct Professor, WH Bryan Mining and Geology Research Centre, The University of Queensland.
6. MAusIMM(CP), Manager Resource Assessment Research and Development, BHP Billiton, 125 St Georges Terrace, Perth WA 6000. Email: [email protected]
INTRODUCTION
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Andre Journel. By data-charged he meant using models that are fundamentally linked
to the data themselves (including geological observations), rather than arbitrary and
disconnected from the deposit thats being estimated.
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Coal Geology
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TABLE 1
Comparison of responsibilities Competent Persons and Qualified Persons.
Responsibility
Qualified Persons (Canadian framework)
Competent Persons (JORC Code framework)
Experience
5 years mining industry
5 years relevant experience
Relevance of experience
experience relevant to the subject matter of the mineral project and

the Technical Report
a minimum of five years relevant experience in the style of

mineralisation or type of deposit under consideration and in the activity
which that person is undertaking
Competency assessment
Self-assessed
Self-assessed
Independence
If material change and in certain other situations
Not required
Verification and description Yes

of data
Assumed as part of the technical work; disclosed in comments on JORC

Code Table 1
Technical Report
Yes, for public disclosure and to prescribed format
Signed documentation required, but not necessarily for public disclosure
Public Report
Full NI43-101 Technical Report
Summary comments on all criteria in the relevant sections of JORC Code

Table 1
Responsible for delegated

work
Yes
Yes
Certificate/letter of consent Certificate and consent
Consent
Familiarity
Securities exchange listing rules, guidance notes, ASIC regulatory guides

and the JORC Code, including all guidance notes and Table 1
NI 43-101, 43-101CP, other regulatory requirements, the CIM Definitions

Standards, CIM Best Practices Guidelines for Mineral Resources and Mineral
Reserves, CIM Best Practices Guidelines for Mineral Exploration and (if
applicable) CIM Guidelines for Reporting of Diamond Exploration Results
37
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Exploration and
Data Collection
The Resource
Database
Geological
Interpretation
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Estimation,
Classification and
Reporting
Modifying Factors

Assessments
Ore Reserve
Estimation,
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Chapter 2 | The Resource Database

N Hanson
43
Design Principles of Relational Databases and Management of Data Flow for Resource Estimation
M Z Abzalov
47
Sampling and Analysis Protocols and Their Role in Mineral Exploration and New Resource Development
S Roden and T Smith
53
Geological Data Collection for Reliable Coal Resource Estimation
D R Green
61
A Review of the Reliability and Validity of Portable X-Ray Fluorescence Spectrometry (pXRF) Data
M F Gazley and L A Fisher
69
How Sampling Biases Can Induce Decision-Makers to Make Wrong Decisions An Introduction to Qualitative
Sampling Theory
P M Gy and
83
Practical Considerations and Shortcuts in Sampling
87
Geostatistical Criteria for Choosing an Optimal Ratio between Quality and Quantity of Samples Method and
Case Studies
M Z Abzalov
91
Measurement of Bulk Density for Resource Estimation Methods, Guidelines and Quality Control
I T Lipton and J A Horton
97
Collection of Geotechnical Data from Drill Holes
A van As
109
Use and Abuse of Oriented Drill Core
B K Davis
121
HOME

N Hanson1
ABSTRACT
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49
TABLE 1
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Numeric code
Explanation
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1. Previously: Rio Tinto Technology, 1 Research Avenue, Bundoora Vic 3083.

2. Director, Treleon Pty Ltd, 18 Pebble Beach Court, Belmont NSW 2280. Email: [email protected]
* An earlier version of this paper was published in the first edition of Mineral Resource and Ore Reserve Estimation The AusIMM Guide to Good Practice (2001).
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deposit
FIG 5 - Control chart of silica assays.

59
TABLE 2
Assay data from a reverse circulation interval.
Portion no
Assay
(wt % Cu)
Assay duplicate
(wt % Cu)
Mean %
difference of
assay duplicates
1.51
1.22
21.2
1.51
1.29
15.7
1.28
1.31
2.3
1.31
1.24
5.5
1.36
1.44
2.9
1.48
1.37
7.7
1.34
1.33
0.7
1.42
1.35
5.0
1.17
1.61
31.7
10
1.30
1.29
0.7
Average
1.37
SD
0.103
% RSD
9.3
8.1
Note: SD standard deviation; RSD relative standard deviation.
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REFERENCES
-DPHV&DQG5DGIRUG14XDOLW\FRQWUROKRZGR\RXNQRZLI
\RXUGDWDDUHULJKW"Australian Institute of Geochemists Bulletin
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Geological Data Collection for Reliable

Coal Resource Estimation
D R Green1
ABSTRACT
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1. MAusIMM, Principal Geologist, Green Exploration and Mining Services Pty Ltd, 2 Delmara Close, The Gap Qld 4061. Email: [email protected]
INTRODUCTION
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A Review of the Reliability and

Validity of Portable X-Ray Fluorescence
Spectrometry (pXRF) Data
M F Gazley1,2 and L A Fisher3
ABSTRACT
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1. GAusIMM, Research Scientist, CSIRO Earth Science and Resource Engineering, PO Box 1130, Bentley WA 6102. Email: [email protected]
2. Previously: Project Geologist, Barrick (Australia Pacific) Limited, Perth and Victoria University of Wellington, New Zealand.
3. Research Team Leader, CSIRO Earth Science and Resource Engineering, PO Box 1130, Bentley WA 6102. Email: [email protected]
INTRODUCTION
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FIG 1 - X-rays are emitted from the unit, which excite atoms in the sample being analysed; this results in the displacement of inner shell electrons.
Outer shell electrons fall into the space left by the displaced electron and in doing so emit fluorescence that is characteristic of each element.
The intensity of the energy is proportional to the concentration of the element in the sample.
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FIG 2 - Sr, Rb and Zr concentrations measured in the same trachyandesite sample from Murry Canyon utilising two different portable X-ray
fluorescence units from the same manufacturer; modified after Goodale et al (2012).
71
FIG 3 - Long-term drift of a single portable X-ray fluorescence unit over 12 months analysing the same standard each time; 5 analyses were collected at the start of
each analysis session. Note low analyses, which will result when the sample is not sitting well against the unit; low and high outlier analyses suggest using a median
rather than an average concentration to calculate a correction factor is likely to yield better results. Dashed lines indicate rapid changes in measured concentration at
the same date on each panel. (A) Ca, (B) Mn and (C) Cu concentrations of metabasalt standard PLU-1 (expected concentrations presented in Fisher et al, 2014).
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FIG 4 - Four type-examples of short-term analytical drift from real portable X-ray fluorescence (pXRF) data. Data collected in a single analysis session with repeated
analyses of the same standard at a constant temperature. These data show the types of analytical drift that can occur in pXRF data and need to be corrected for by
frequent, and appropriate, standards and calculation of correction factors. (A) Ideal data; (B) a step change during analysis, potentially caused by the sample moving
or a step change in the internal calibration of the unit; (C) gradual drift, potentially occurs soon after start-up of the unit before it is warmed up; and (D) random
fluctuation between two values.
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FIG 5 - Spectra for Au and W showing the similarities between the two and
how the L1 peak (9.67 keV) of W can interfere on the L1 peak (9.71 keV) of Au.
If the detector in the portable X-ray fluorescence unit does not have sufficient
resolution to determine the difference between these peaks, or the software in
the unit is unable to deconvolve them successfully, then a false concentration
for Au may be determined when W is present.
FIG 7 - Normalised attenuation of measured concentrations of As, Fe and Mn due

to the presence of soil moisture (normalised as a percentage concentration loss);
after Parsons et al (2012). Error bars = standard deviation from five replicates.
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FIG 6 - Sampling precision will be reduced in samples with coarse grain size;
for this reason it is recommended that samples are pulverised prior to analysis
as this ensures the representivity of the analysis.
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FIG 8 - Box and whisker plots for K, Zr, Ca and Sr showing variation in concentrations for the same interval of dolerite core with decreasing particle size; solid
curved core, solid flat core, crushed core (97 per cent passing 2.8 mm) and pulverised core (90 per cent passing 70 m). Note how the interquartile range and
outliers decrease significantly when the flat side of the core is used instead of the curved surface and it decreases further when particle size is also reduced.
The central box is the middle 50 per cent of the data, the mean is the circle and the median the line.
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CALIBRATION AND REFERENCE MATERIALS
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FIG 9 - Effect of the nature of the material between standard and unit; after Fisher et al (2014). Ac = analysis in container and A = analysis with no container,
such that the analysis of the sample with no container plots along the line at 1. Thicker material, such as paper or plastic bags cause greater attenuation and
may also contain elements that cause additions to the analysis. Attenuation is typically greater for lighter elements.
FIG 10 - Thickness of sample (by weight in Mylar cup) after Parsons et al (2012); showing decreasing analysed value with decreasing sample thickness.
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Measuredconcentration(ppm)
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FIG 11 - Variations in calculated corrections (linear fit) based on the matrix of standards used; after Fisher et al (2014). Note there can be a significant difference
between the correction factors calculated based on multiple rock types (all rock standards with felsic to ultramafic composition) and ultramafic rocks only.
ANALYTICAL PROTOCOLS
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FIG 12 - Test work should be conducted to determine optimum analysis time balancing sample throughput, analytical precision, analytical accuracy and analytical
error. (A) Changes in analytical accuracy and precision with increased count time for analysis of Mn in NIST2702 (n = 10). (B) Average counting statistics associated
with analyses in (A) show improvement in analytical error with increased count time. (C) Changes in analytical accuracy and precision with increased count time for
analysis of Zn in NIST2702 (n = 10). (D) Average counting statistics associated with analyses in (C) show improvement in analytical error with increased count time
(modified after Fisher et al, 2014).
FIG 13 - An annotated example of Table 1 in Gazley et al (2012) showing elements reported, expected value of the standard, median value, standard deviation,
calculated lower limit of determination (after MacDougall and Crummett, 1980) for 21 repeated analyses of an appropriate concentration standard; and the
interquartile range concentrations from the data set being analysed.
78
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TABLE 1
An example of a table to present analysis conditions of portable X-ray
fluorescence data (data are after Gazley et al, 2011).
Instrument
Model: Innov-X Omega

Tube current: 10 - 50 A
Tube voltage: 10 - 40 kV
Mode of operation
Soil
Analysis time (per filter/beam)

Calibration used
90 s
Factory
Reference material utilised
JB-1
Nature of reference material
Powder
Nature of blank
Pressed powder SiO2
Nature of sample
Powder (90% passing 75 m)
Moisture content
Dried for >2 hours at 110C
Sample container
Paper bag
Type of correction
Single point
Ti 0.58
Correction factors
Zr 1.00
Cr 0.70
K 1.18
CONCLUSIONS
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How Sampling Biases Can Induce

Decision-Makers to Make Wrong
Decisions An Introduction to
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P M Gy1 and D M Franois-Bongaron2
ABSTRACT
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1. PhD, Retired sampling consultant, Bordeaux, France.

2. FAusIMM, President, AGORATEK International Consultants, Inc, 2/270 West 5th Street, Vancouver BC V7M 1K1, Canada. Email: [email protected]
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* An earlier version of this paper was published in Proceedings Sampling 2012, pp 171-174 (The Australasian Institute of Mining and Metallurgy: Melbourne).
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FIG 1 - Map of the modelled uranium grades showing impact of the nugget effect on model uncertainty.
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FIG 2 - Sketch explaining the principals of the proposed method allowing separating contributions to the
geostatistical nugget effect made by sample precision errors from geological factors.
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Grade control procedures at the Yandi mine, Australia
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FIG 3 - Diagrams explaining the principals of optimisation drill grids and sampling protocols and considering their impact on the project economics: (A) calculating
the amount of misclassified ore and waste using the error quadrant; (B) comparing two sampling protocols and estimating the costs of misclassified ore and waste.
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TABLE 1
Statistical parameters deduced from pairs of the blasthole samples, Yandi iron ore mine.
Sample duplicates analysis
Pairwise relative variogram

Geological factor
94
Al2O3
SiO2
Fe
Number of sample pairs
553
553
553
Mean (1) %
1.4
4.4
58.8
Mean (2) %
1.4
4.4
58.7
Standard deviation (1)
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1.4
1.2
0.8
1.5
1.3
Correlation
0.88
0.88
0.8
Relative sampling variance (Equation 3)
0.0216
0.0077
0.0001
Nugget effect
0.0450
0.0110
0.0003
Nugget effect relative sampling variance
0.0234
0.0033
0.0002
Geostatistical Criteria for Choosing Optimal Ratio between Quality and Quantity of the Samples Method and Case Studies|M Z Abzalov
TABLE 2
Statistical parameters of the bauxite mineralisation.
Sample duplicates analysis
R-SiO2
LOI
Number of sample pairs
1869
1869
2107
Mean (1) %
27.1
6.9
18.7
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6.9
18.6
16.6
6.4
7.7
16.6
6.4
7.6
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0.98
0.96
0.99
Relative sampling variance (Equation 3)
0.0385
0.0569
0.0217
Nugget effect
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0.1100
0.0250
Nugget effect relative sampling variance
0.0215
0.0531
0.0033
Pairwise relative variogram

Geological factor
Al2O3
R-SiO2 reactive silica; LOI loss on ignition
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REFERENCES
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TABLE 3
Proportions of the misclassified blocks estimated applying the error quadrants approach to the three models presented in Figure 1.
CV%
a
Total error (misclassified ore and waste selectively mineable blocks)
Case 1
Case 2
Case 3
10.1%
18.3%
27.2%
3%
5%
>10%
a. Proportion (per cent) of the misclassified blocks relative to total amount of mined ore blocks.
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Measurement of Bulk Density for

Resource Estimation Methods,
Guidelines and Quality Control*
I T Lipton1 and J A Horton2
ABSTRACT
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1. FAusIMM, Principal, Golder Associates Pty Ltd, 147 Coronation Drive, Milton Qld 4064. Email: [email protected]
2. FAusIMM(CP), Principal Geologist, Golder Associates Pty Ltd, 147 Coronation Drive, Milton Qld 4064. Email: [email protected]
INTRODUCTION
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TABLE 1
Description of key terms.
Term
Units
Specific gravity
Relative density: the ratio of the density of material to

the density of water at 4C (1.00 t/m3)
t/m3
Density
Definition
Mass per unit volume
In situ bulk density
t/m
Density of the material at natural water content
Dry bulk density
t/m3
Density of the material when all water has been dried

out of the voids
Grain density
t/m3
Density of the solid grains only both mass and

volume refer to grains only
Apparent porosity
Ratio of the open, interconnected pore volume to the

bulk volume, expressed as a percentage
Total porosity
Ratio of the total pore volume including occluded

pores to the bulk volume, expressed as a percentage
Moisture content
Ratio of the mass of free water contained in the

material to the mass of the dry solid, expressed as a
percentage
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Measurement of Bulk Density for Resource Estimation| I T Lipton and J A Horton
The following sections summarise various approaches to

density measurement, depending on the type and volume of
materials available.
DETERMINATION OF BULK DENSITY FROM

SMALL SAMPLES
Several practical methods of measuring the bulk density of
rocks are available. Each method has its own advantages,
disadvantages and sources of error, hence it is important
to check the results from one method against the results
obtained by a second method. The keys to minimising errors
are a systematic approach to the task and careful monitoring
of the sampling and measurement procedures.
It is important that the samples used for density
measurement are representative of the materials for which
Resource or Reserve estimates are to be determined. If the
materials are variable, particularly in mineral composition
or porosity, subsampling may easily become biased.
For example, massive hard material may be sampled
preferentially over softer leached materials, or high-grade
material may be sampled in preference to low-grade material.
This is particularly problematic when sampling from
stockpiles, costeans or mine faces. When using drill core,
measurements of individual pieces of drill core (subsamples)
may be satisfactory in relatively homogeneous materials.
However, it is preferable to adopt a constant sample length
and contiguous sample intervals in order to minimise the risk
of biasing the sample selection.
td =
ms
V
2
V = r #c d m # l
If the core is broken by planar features such as bedding,

joints and shears, and squaring the ends of the core is not
practical, the method can be adapted without cutting the
core. In such cases, the length of the sample is the distance
between the midpoints of the two planar features. The density
calculation is the same.
This method can also be extended to half core samples,
permitting density measurements to be obtained
retrospectively from older previously cut core. The
measurement and calculation are more difcult and the
process of half core sampling will result in breakage of the
core, increasing the likelihood of sample selection bias, so
full core measurements are always preferred. If the core saw
has been correctly aligned along the axis of the core, the half
core will be slightly smaller than a complete hemisphere.
The following parameters must be determined by averaging
multiple calliper measurements:
core length (l)

core segment width (w) also known as the arc or chord
length
core segment height (h).
The calculation for the cross-sectional area (A) of the half
core is (Anon, n/d):
2
2h
2
3
^ 2
A = c w + h m cos-1e w - 4h o - w + wh
2
2
8h 2
16
hh
4
^
^w + 4h h
All samples should be geologically logged. Features such

as rock type, mineral assemblage, texture, structure, degree
of oxidation and quality of the sample should be recorded.
where:
Several methods for measuring the bulk density of small

samples are outlined below. The selection of the best
method for a particular sample will depend on the physical
characteristics of the material, the type of sample and the
practical constraints of the working environment, such as the
type of weighing equipment that is available. The moisture
content of the samples must also be taken into account.
Hence, all samples must, at some point, be dried until their
mass stabilises. The time required to do this is explicitly
specied by some methods but not by others. Since the rate
at which geological samples can be dried varies signicantly
depending on the size of sample, mineral assemblage and
drying equipment, a suitable drying procedure should be
conrmed by experimentation. This is discussed below.
For small core sizes, the calliper method is sensitive to

irregularities or errors in the measurement of the diameter
of the core. This problem is progressively reduced as core
diameter is increased. Since the in situ volume of the core
is the variable of interest, care must be taken when dealing
with materials that swell after removal from the core
barrel. If swelling has occurred, it is necessary to correct the
measurements of the core diameter by reducing them to the
internal diameter of the core barrel or to infer the diameter of
core from adjacent geological units that have not expanded.
Swelling may also affect the length of the core but determining
a correction factor to account for this is more difcult, since
there is likely to be no reference point for estimating the
in situ core length.
Calliper method
This method is applicable to good quality drill core samples.
It is described in the Australian Standard, Methods of
sampling and testing asphalt determination of bulk density
of compacted asphalt mensuration method (Standards
Australia, 2005c).
The ends of the core sample should ideally be cut with
a saw perpendicular to the long axis of the core to create a
regular cylindrical sample. The diameter of the core (d) is
determined with a pair of callipers, and the measurements
should be taken at several points and the results averaged.
The length of the core (l) is determined with a tape measure.
The mass of the dry solids (ms) is determined by weighing the
core after drying on an accurate and precise balance.
The dry bulk density (d ) is calculated by:
cos-1
is in radians and hence, volume (V): V = l A
The procedure has the advantages of being very simple

and generally requires no special equipment. If the core is
saturated or contains minerals that adsorb large amounts of
water, drying times may extend to several days. If the core is
to be sampled for assay by sawing, it must be reassembled.
The method accounts for macro pore space that may not be
accounted for with water immersion methods. The calliper
method offers a simple quick ISBD measurement that can
also be implemented to provide cross-checks against other
methods.
Water displacement methods

Most practical procedures for determining the density of a
rock sample derive the volume of the sample from the volume
of water displaced by the sample. There are many variations
on this theme depending on the physical characteristics of the
99
sample and the type of weighing equipment available. The

volume of water displaced by the sample can be measured
either directly or can be derived using Archimedes principle.
This states that a solid submerged in a uid will experience
an upward force equal to the weight of uid that it displaces.
Thus, if the uid is water, the volume of the displaced water
and hence the volume of the solid is given by the difference
between the weight of the solid in air and the weight of the
solid in water. Some of the possible implementations of this
principle are outlined below. Note that in all cases, weights
must be adjusted to take into account the weight of the
container holding the sample.
Water displacement method 1

This is a method specied by the American Society for Testing
of Materials procedure for the Determination of the specic
gravity of lump coke samples (American Society for Testing
of Materials, 1979); however, it can be used to determine
the dry bulk density of reasonably competent rock samples
that do not contain large cavities. The sample is assumed
to displace a volume of water equal to its own bulk volume
minus the volume of water absorbed into the sample. The
procedure is as follows:
Dry the sample at 110C for 24 hours.

Weigh the sample to determine the dry mass (ms).
Slowly submerge the sample in a water-lled vessel and
collect the displaced water in a measuring beaker.
Weigh the water displaced by the sample (mw).
Retrieve the sample from the water vessel and weigh it
to determine the mass of the sample plus absorbed water
(msat).
The dry bulk density (d) is calculated by:
td =
ms
mw + ^msat - msh
The main practical difculty with this approach is the

collection of all the displaced water. Clearly, unless the vessel
is initially lled exactly to the point of overowing, the volume
of water displaced by the sample will be underestimated.
Consistency in managing or breaking the water surface tension
is important as this can alter the volume readings. The method
can be very time-consuming to carry out accurately.
A variation of this method is to measure mw by reading
the volume of water displaced from the graduations on the
measuring beaker. Since for practical purposes the density of
water is 1.0 t/m3, the mass (mw) is the same as the volume.

Many highly weathered or clay-rich samples tend to slake or
disintegrate when immersed in water. Water displacement
method 1 is unsuitable for such materials. To overcome this
problem, the samples can be coated with wax after drying. A
water displacement method can then be used as follows:
100

Determine the density of the wax (wax).
Completely seal the sample by coating the sample with
hot wax.
Allow the coated sample to cool to room temperature and
then weigh it (ms+wax).
Slowly submerge the sample in a water-lled vessel and

collect the displaced water in a measuring beaker.
Weigh the water displaced by the sample (mw).
The dry bulk density (d) is calculated as the mass of dry
sample divided by the volume of the sample after accounting
for the volume of wax. Hence:
td =
ms
mw - (ms + wax - ms)
twax
The difculty of collecting all the displaced water still

remains, however.

Direct measurement of the volume of water displaced by a
sample is avoided by methods that use Archimedes principle.
For competent samples that do not absorb water, the following
simple buoyancy method may be used:

Place the specimen in a basket and weigh it, suspended
from a balance, in water. Subtract the weight of the basket
in water to determine the weight of the sample in water
(ms in water).
The dry bulk density (d) is calculated as the mass of sample
in air divided by the difference between the mass of the
sample in air and the mass of the sample in water. Hence:
td =
ms
ms - ms in water

A variation of water displacement method 2 using wax
to seal the sample is described in the Australian Standard,
Methods of sampling and testing asphalt Determination
of bulk density of compacted asphalt waxing procedure
(Standards Australia, 2005a). This method can be used for
porous or friable rock samples. Rather than collecting the
water displaced by the sample, the weight of the sample
when suspended in water is determined. The procedure is
summarised as follows:
Air-dry the sample to constant mass.

Determine the density of the wax.
Coat the sample with hot parafn wax. Allow the coated
sample to cool to room temperature and then weigh it
(ms+wax).
Transfer the specimen to a basket and weigh it, suspended
from a balance, in water. Subtract the weight of the basket
in water to determine the weight of the sample in water
(ms+wax in water).
The dry bulk density (d) is calculated as the mass of dry
sample divided by the volume of the sample after accounting
for the volume of wax. Hence:
td =
ms
(ms wax - ms wax in water) +
+
ms wax - ms
+
twax
The specied drying procedure is likely to be very slow for

many geological samples, so drying at 110C for 24 hours is a
more practical option.
td =

It may be difcult to effectively seal highly porous rocks with
wax or quick-drying sprays. If the sample does not slake or
disintegrate in water, an alternative method that allows the
sample to become saturated with water may be used. This
procedure is described in Australian Standard, Methods of
sampling and testing asphalt determination of bulk density
of compacted asphalt presaturation method (Standards
Australia, 2005b) and is summarised as follows:
Dry the sample.

Suspend a basket beneath a balance, the basket being
submerged in a container of water and zero the balance.
Place the specimen in the basket, allowing sufcient time
for the sample to become saturated. Weigh the sample
(msat in water).
Remove the saturated sample from the water, surface-dry
the sample with a damp cloth and quickly weigh it in the
air (msat).
td =
ms
msat - msat in water
A similar method is provided in Australian Standard,

Methods of testing rocks for engineering purposes, Method
2.1.2: rock porosity and density tests determination of
rock porosity and dry density saturation and buoyancy
techniques (Standards Australia, 2005d).
The determination of the saturated mass in air for samples
with coarse pores and cavities on the external surface can
be difcult because the water occupying these voids drains
very rapidly when the sample is retrieved from the water
vessel. Therefore, the mass of the saturated sample may be
underestimated.
ms
^m3 - m1h - ^m2 - m1h -
Further examples of the implementation of water

displacement methods with various types of balances are
presented in Read (1970).
The American Society for Testing of Materials standard test
method for bulk specic gravity and density of compacted
bituminous mixtures using automatic vacuum sealing method
(American Society for Testing of Materials, 2011) presents
a similar method in which cylindrical or cubic samples are
sealed in a plastic bag before being weighed in water.
Sand replacement method

In situ eld measurements of bulk density can be made using
the sand replacement method. The method is described
in Australian Standard, Methods for testing of soils for
engineering purposes. Method 5.3.1: soil compaction and
density tests determination of the eld density of a soil sand
replacement method using a sand-cone pouring apparatus
(Standards Australia, 2004), and an abridged description is
presented here. It involves digging a small hole of about 3 or
4 L at a test site and lling the hole in a controlled manner with
sand of uniform grain size and known (calibrated) density. The
sand is allowed to run into the hole until the hole is full. It must
not be compacted. The apparatus (Figure 1) consists of:
a plastic bottle with a valve and cone for pouring the sand
a at metal template with a central hole that provides a
pattern for digging a cylindrical hole into the test material
and a rm base for the pouring equipment
Container
5Lapprox
A further variation of the water displacement method using

wax does not involve weighing the sample in water but
involves weighing a container of water with and without the
sample suspended in it. The procedure is as follows:

Determine the density of the wax (wax).
Coat the sample with hot parafn wax. Allow the coated
sample to cool to room temperature, then weigh it (ms+wax).
Place a container of water on a balance or scales and
weigh the container of water (m1).
Suspend a wire basket from a retort stand and immerse it in
the water container; then weigh the container of water (m2).
The increase in mass of the water container is equivalent to
the weight of the water displaced by the wire basket.
Place the specimen in the wire basket. Suspend the sample
and basket from the retort stand and immerse the sample
in the water container. Weigh the container of water (m3).
The increase in mass of the water container is equivalent
to the weight of the water displaced by the sample and
wire basket.
ms + wax - ms
t wax
Funnel
Tap
Cone
160mmor
210mmapprox
Hole150mmor200mm
(withoptionallocationlip,2mmhigh)
FIG 1 - Equipment for sand replacement method.

101
a cylinder of known volume for calibration of the pouring

density of the sand.
The pouring density of the sand (sand) must be carefully
calibrated using the same sand cone pouring apparatus as is
used to deliver the sand to the test hole and the calibrating
cylinder. The mass of sand that lls the pouring cone (m3)
must also be determined. Each new batch of sand must
be calibrated, since the pouring density depends on the
composition and geometry of the grains.
The eld procedure for measuring the bulk density at a test

site is as follows:
Select a at test site. Any compacted or disturbed material

should be scraped away to leave a at undisturbed
surface.
Fix the template into place, ush with the ground surface.
Dig a cylindrical hole within the template. The hole
should be approximately as deep as the template is wide.
Do not dig underneath the rim of the template as sand
may not run freely into this space.
Collect all material dug from the hole in an airtight plastic
bag. Moisture loss during digging should be prevented.
Weigh the material back at the laboratory/ofce, allowing
for the bag etc (m11).
Fill the bottle with one-size sand and weigh the bottle (m9).
Fix the valve and cone to the bottle. Invert the bottle and
place it on top of the template. Open the valve and allow
the sand to ll up the hole.
When the sand has stopped running, close the valve,
remove the valve and cone and reweigh the bottle and its
remaining contents (m10). Calculate the weight of sand in
the hole (m12) as:
m12 = m9 - m10 - m3
Calculate the wet bulk density (wet) of the material from

the hole as:
twet = tsand #
Regular calibration of the sand is essential.
Core tray method

Highly weathered or altered drill core presents a particular
challenge for bulk density measurement. Commonly,
the core is highly broken and the mineralogical and
physical characteristics of the core may be highly variable.
Consequently, the pieces of core suitable for the measurement
methods described above may be limited in number and
may be unrepresentative of much of the material. In these
circumstances, the risk of error in the bulk density estimate
will be relatively high.
It is useful to check the validity of estimates derived from
subsamples of highly weathered or altered core by measuring
the bulk density of entire trays of drill core. This is possible if
core trays can be effectively air-dried, core loss is not extreme
and the empty core trays have a consistent mass (as is usually
the case with aluminium and plastic but not wood). The
procedure is as follows:
m11
m12
The moisture content (MC) can easily be determined by

subsampling the material removed from the hole, weighing
the wet subsample, drying the subsample and reweighing it.
The dry bulk density can then be calculated as:
t wet
t d = 100 #
100 + MC
The sand replacement method is a eld procedure and if
correctly executed can produce robust in situ measurements.
The Australian Standard is designed to control delivery of
free-owing sand of uniform grain size into the void. This
ensures that the density of the poured unconsolidated sand is
the same as determined in the calibration test and that results
are accurate and repeatable.
The main sources of errors using this method are related to the
location of the sample and the condition of the sand. The method
is generally only suitable for sampling the upper portions of
a weathering prole and may easily be biased towards softer
materials. The sample may be affected by disturbance prior to
the test, eg compaction by mining equipment or changes in
moisture content (swelling or shrinkage).
102
Obtaining a commercial supply of clean single-size sand

may be difcult for a remote eld operation so eld crews may
resort to river or beach sand that has been graded by sieving.
The sand should be rounded and have a small size range,
and it must be clean and dry. If the sand is to be recovered
for reuse, contamination must be avoided. The authors have
observed thin plastic, such as food wrap, successfully being
used to line the test hole to prevent loss of sand into vughs
and ssures and to facilitate sand recovery.
Determine the weight of an empty core tray (m1). This

only needs to be done once for each type of tray. Also
weigh a core block (m2).
From the core depth markers, determine the start and
nish depth of the core in the tray.
Measure the recovered core length (l).
Check the diameter (d) of pieces of whole core with
callipers. Record the individual measurements, then
estimate the average diameter of the core for the whole
tray to the nearest 0.1 mm. (The variations in calliper
readings may be used later to assess the reliability of the
density estimate.) Do not measure core that has swelled
in the tray. The objective is to determine the diameter that
the core occupied in the ground.
Weigh the full tray of core (m3). Note the number of core
blocks (n). Check that the balance is zero beforehand.
Note any problems or unusual geology in the
comments eld (eg wet core, broken tray, difculties in
measurements, massive sulde, etc).
The dry bulk density (d) is calculated as:
td = l # r #
d 2
c2m
m3 - m1 - ^n # m2h
The core tray method provides a useful reality check

against the results from measuring subsamples and can be
used to check for subsampling bias. In cases where the core is
in very poor condition, the core tray method may be the only
alternative to an informed guess.
Measurement of density from pulp samples

An alternative source of density data may, in some cases, be
provided by rock pulp samples. The specic gravity (SG) of
solids (solid density, grain density) can be determined using

equipment such as a pycnometer, or gravity bottle. This is a
small glass bottle tted with a stopper through which there is
a ne opening. The general procedure is as follows:
The pulp sample (typically 10 - 20 g) is rst weighed (m1).

The empty pycnometer is weighed and this mass is used
to tare the other measurements.
The pycnometer is then lled with a stable liquid such as
xylene, which has good wetting properties, and weighed to
determine the mass of xylene in the full pycnometer (m3).
Some of the xylene is then removed from the pycnometer
to make way for the sample. The sample is introduced
into the pycnometer. Air entrapped within the pulp is
then removed under vacuum and the pycnometer is
completely lled with xylene and weighed (m2).
The pycnometer is then emptied, dried, lled with
deionised water and weighed (m4).
The density of the xylene (x) is then calculated as:
m
t x = 3 # tw
m4
where:
w
is the density of deionised water at 25C

The SG of the solids is then calculated as follows:
ts =
m1
# tx
m4 + m3 - m2
The pycnometer method can be a very accurate measure

of solids density if the sample is properly de-aerated. It is
normally used to measure the specic gravity of minerals or
gems. For Resource estimation, bulk density rather than solids
density is required. Comminution of the original rock sample
destroys the fabric of the rock and makes direct measurement
of bulk density impossible. However, for rocks that have very
low porosity and do not absorb liquids, it may be possible to
establish a consistent relationship between solids density and
bulk density by measuring the density of samples before and
after crushing. In these circumstances, pycnometry data may

form a useful part of the density database.
Generally, for the estimation of Resources, methods using
larger uncrushed samples offer more direct measurements
of bulk density, can be more critically evaluated and are less
expensive and more practical.
SEALING POROUS SAMPLES

Several of the methods described above involve sealing the
sample with parafn wax or beeswax. This approach can be
useful if the samples are weak and likely to disintegrate in
water. The equipment required for waxing is simple and if
correctly applied, the wax completely seals the specimen. The
sample must be coated with a layer sufciently thick to seal
the surface voids. It may be necessary to allow the rst coat of
wax to cool, then brush the surface of the cooled wax with a
second layer of wax to ll in any pinpoint holes.
If wax is used, corrections for the volume or mass and
density of the sealant are required. The density of wax and
water varies slightly with temperature. At 25C the density of
water is 0.997 t/m3; however, for the purpose of calculating
the density of geological samples, it is generally assumed to be
1.00 t/m3. In practice, the errors arising from this assumption
are likely to be much smaller than other errors inherent in
bulk density measurement, and can be ignored.
The disadvantages of applying wax are that it is timeconsuming, particularly if the sample is very absorbent, and
the sample becomes contaminated with the wax and then
may be unsuitable for chemical analysis or metallurgical test
work.
The authors have also encountered hairspray and varnish
being used as sealants. It is doubtful whether these coatings
provide effective seals.
As a result of these problems, plastic food wrap has
sometimes been used to seal porous samples. The food wrap is
cheap, quickly applied and easily removed after use. However,
it has the fundamental drawback that it is very difcult to
FIG 2 - Comparison of dry bulk density data showing effect of food wrap on buoyancy.
103
avoid trapping pockets of air inside the wrapped sample,

particularly where the wrap covers an irregular surface.
This signicant problem is illustrated by a data set of 366
core samples from a base metal deposit. Dry bulk density
was measured for each sample using the calliper method and
an Archimedean method (water displacement method 5).
Figure 2 presents the raw, unltered data. At the start of the
program, the samples were not sealed; the correlation between
the two sets of results was generally very good and there was
no bias. From sample 10 344 onwards, the samples were sealed
with food wrap, which signicantly affected the buoyancy of
the samples and resulted in a large underestimation of dry
bulk density by the Archimedean method.
The authors do not recommend using food wrap to seal
samples during bulk density measurements.
mass of the sample before and after heating. Care must be

taken not to heat the samples above this temperature range
because hydrous minerals, such as limonite and gypsum,
progressively break down and release water of crystallisation.
This can also be measured and is reported as part of the Loss
on Ignition (LOI). The time required to dry the samples to the
point at which their mass stabilises should be conrmed by
experimentation.
Moisture content is reported as a percentage and is dened
in one of two ways: either with respect to the dry mass of the
sample or the wet mass of the sample. Hence, when receiving
any moisture content data it is critical to know on what basis
it was calculated as the conversion of wet bulk density (w) to
dry bulk density (d) is dependent on this.
If reporting moisture content (MC) with respect to dry mass
(as used in this paper), use this equation:
MOISTURE CONTENT
The moisture content of rocks and soils and their behaviour
during drying can be highly variable. Consequently, when
measuring bulk density it is important to choose a method
appropriate to the condition of the samples and to manage the
moisture content of the samples from the point of collection.
Many fresh rock samples can be quickly and effectively
dried in the sun and, if their porosity is low, the dry bulk
density can be directly measured using the calliper method or
water immersion methods. By contrast, samples containing
sedimentary, supergene or hydrothermal clay minerals can
present a challenge for measurement of density.
Clay-bearing samples may contain moisture that is slow
to release by sun-drying or the samples may shrink or crack
during drying leading to an underestimation of the volume
of the sample. Extreme examples of this are found in the
limonite and transition zones of wet tropic nickel laterites
in Asia. Some of the highly leached limonite and saprolites
derived from ultramac bedrock may have in situ moisture
contents of up to 65 per cent, with wet bulk densities as low
as 1.3 t/m3 and in situ dry bulk densities as low as 0.45 t m3.
In such cases, the process of drying will commonly result
in shrinkage of the samples. Consequently, methods that
measure the bulk density and moisture content of wet or
saturated samples should be chosen, from which the dry bulk
density can be derived.
In order to obtain reliable measures of in situ moisture
content, samples should be sealed in plastic bags as soon
as they are collected in the eld to prevent drying. Sealing
in plastic is also advisable for unsaturated samples if they
are prone to shrinkage or if they are hygroscopic and may
absorb moisture from the atmosphere. The possibility of
the articial addition of water to the samples located above
the water table must also be considered. Drilling uids that
are normally used for core drilling and occasionally used
for percussion drilling may be absorbed by the samples
even before they are delivered to the surface. Even if in situ
estimates of moisture content cannot be obtained, the
moisture content of every sample at the time of the bulk
density measurement must still be known in order to derive
the dry bulk density.
Moisture content is determined in the laboratory by heating
the sample in an oven to around 105 - 110C for several hours.
This releases the free water from the interstitial pore spaces
and the moisture content is calculated from the difference in
104
MC = 100 #
mwet - mdry
mdry
and
td =
tw
1 + MC
100
Or, if reporting moisture content with respect to the wet

mass of the sample:
MC = 100 #
mwet - mdry
mwet
and
t d = tw # 100 - MC
100
When calculating the dry bulk density from wet bulk
density measurement, the moisture content must be obtained
from the same sample. The use of average moisture content
values from other samples should generally be unnecessary,
and avoided.
DOWNHOLE GEOPHYSICAL DENSITY LOGGING

Geophysical logging of drill holes is widely practiced in some
sections of the Australian mineral industry, such as coal and
iron ore, but in other commodities the industry has been slow
to adopt this technology. Geophysical logging can provide
large volumes of data on rock mass characteristics including
bulk density.
A continuous down-hole density prole can be obtained
using a geophysical logging probe (sonde). The sonde is
typically a composite tool consisting of a focused (collimated)
gamma-gamma source and detector, a natural gamma
detector and a calliper. The probe is winched up an open
(uncased) drill hole on the end of a wireline. The calliper
arm is used to hold the source and detectors in contact with
the hole wall. The density log readings are therefore only
collected from one sector of the drill hole wall.
A radioactive source of gamma radiation (eg Caesium-137
or Cobalt-60) is located at the base of the sonde. Gamma rays
emitted by the source pass through the hole wall and are
measured by one or two detectors further up the sonde. The

quantity of gamma rays reaching the detector is reduced by
interaction with the rock, primarily by a mechanism known
as Compton scattering in which the gamma rays are deected
by interaction with the electrons in the rock. The attenuation
of gamma rays between the source and the detector is a
function of the ISBD of the rock. The gamma radiation is
recorded in counts/second by the detector typically at
10 cm down hole intervals. The output is sometimes known
as a gamma-gamma log to differentiate it from the natural
gamma log that records natural gamma ray emissions from
the hole wall. Density logging tools usually incorporate both
long-spaced and short-spaced detectors. The short-spaced
detector provides a higher count rate (and thus more precise
measurements), but is more affected by hole conditions than
the long spaced detector. Density measurements can be
improved by combining the readings from the two detectors
to produce a compensated-density log.
Correct calibration of density tools is critical. Typically, the
tool is calibrated by running it in a calibration jig with known
properties or in drill holes for which density measurements
have been obtained by measuring the core. The calibration
should be carried out at several density values across the
range of interest. Solid blocks of ore or concrete blocks loaded
with steel shot can be used. Calibration may be carried out
off-site, in which case a local reference drill hole should
be established. The tool must be regularly checked and
recalibrated against the reference drill hole. Samworth (1992)
presents a detailed discussion of this issue.
The calliper arm produces a log of the diameter of the
drill hole and is essential for quality control. The calliper
log is used in computing the density and is also useful for
identifying cavities, caving of the drill hole wall and irregular
rough drill hole wall conditions. In these instances, the sonde
may lose contact with the wall and the density values will
be incorrect. The calliper log must therefore be used to lter
unreliable data from the density log.
The density log is effective above and below the water
table. Calibration of the tool will vary, depending on whether
the hole is above or below the water table. Air, water and
mud in the drill hole cause varying degrees of attenuation
of the gamma rays so calibration must take into account the
moisture content of the rock and also the nature of the uid in
the hole. Below the water table the density log measures the
saturated (wet) bulk density of the rock. A neutron-logging
sonde may also be used in the hole to measure porosity and
moisture content.
Down-hole density logging is particularly useful in cases
where bulk density is highly variable (eg iron ore deposits,
massive sulde deposits) and it provides a cost-effective
technique for obtaining large amounts of data. In order to
obtain reliable quantitative results for Resource estimation, it
is important that planning for the geophysical logging is fully
integrated with the drilling program so that moisture content
data can be gathered, optimum drill hole conditions can be
achieved and adequate arrangements for data calibration can
be established.
scale measurements of ISBD may be obtained. A bulk sample

may be collected by:
mining regular benches with an excavator, shovel or

loader
sinking a shaft or excavating an adit
drilling a large diameter drill hole.
The in situ volume of the bulk sample can be estimated by
surveying the excavated void or, in the case of large diameter
drilling, by calculation from the nominal drill hole diameter
and hole length. The mass of the excavated bulk sample may
be directly measured using payload measurement systems
on the dump trucks that are used to transport the bulk sample
in conjunction with a weighbridge, which may be hired and
relocated to the bulk test site.
Drying the entire sampled mass is impractical; therefore,
the moisture content of the bulk sample must be estimated
by taking the average of small subsamples. The subsampling
program needs to be carefully planned and executed. If there
is any bias in the selection of samples for moisture content
measurement, this will ow through to an error in the
estimation of the dry bulk density of the entire bulk sample.
STOICHIOMETRIC METHODS ESTIMATION OF

BULK DENSITY FROM SAMPLE CHEMISTRY
In mineral deposits that have relatively simple mineral
assemblages and low porosity, such as many base metal
deposits, strong correlations are commonly observed between
bulk density and the assays. This is expected, since the ore
minerals are often of much higher density than the gangue
minerals in the host rock. The correlations may be sufciently
strong to permit the bulk density of samples or rock units to
be estimated directly from assay values.
Formulae for estimating bulk density are commonly
calculated using linear regression (single assay variable) or
multiple linear regression. For example, bulk density has
been estimated for the McArthur River base metal deposit
using lead, zinc and iron grades (Pevely, 2001). However,
where there is sufcient data, it is often observed that
the relationship between density and grade is non-linear
(Bevan, 1994). Assays and other chemical analyses are
usually expressed on a weight percentage basis but density
is expressed in terms of volume and hence, the relationship
between grade and density is a curve. A simple example
demonstrates this. Suppose a sample has a grade of 50 per
cent copper occurring as the native metal and the remainder
of the sample is quartz. Since the density of copper is 8.9 t/m3
and the density of quartz is 2.7 t/m3, the copper forms:
50
8.9
50
50
` 8.9 + 2.7 j
= 23% of the sample, by volume
Rather than a mass-weighted average of 5.8 t/m3, the

density of the sample is therefore:
^23.3 # 8.9h + ^^100 - 23.3h # 2.7 h
100
LARGE-SCALE METHODS
For projects that are already in the production stage, or for
which trial mining or bulk sample extraction is possible, large
= 4.14 t/m
Estimation of bulk density by regression from assay data

may be satisfactory in deposits in which there are only one
or two dense mineral species. Where the assemblage of dense
105
minerals is more complex and individual elements occur in

more than one mineral, partitioning of assay grades between
mineral species is necessary. This may be problematic;
however, if it is possible to make some realistic assumptions
about the mineral species present in the deposit and their
paragenesis, assay grades can be assigned to an assemblage
of normative minerals. The proportions of the normative
minerals in a sample converted to a percentage volume basis
can then be used to estimate the bulk density of the sample.
Lipton, Shaw and Waltho (1999) presented an example
of how this method was successfully used for the Century
zinc-lead-silver deposit. At Century, Zn, Pb, Fe, Mn and S
grades were used to estimate the proportions of sphalerite,
galena, pyrite, siderite, smithsonite and cerussite and hence,
the bulk density of the samples. Comparison of these results
with the results of physical measurements on core samples
and geophysical (density) logging showed that the normative
mineral method produced very accurate estimates of bulk
density in this deposit.
If estimation of bulk density from assay data is feasible, it
enables use of a very large data set with coverage across the
entire mineral deposit. It is imperative that these estimates
are appropriately calibrated using good quality physical
measurements that are representative of the full range of
grades and ore types that are present.
QUALITY ASSURANCE / QUALITY CONTROL

Density measurements and their application to Resource
estimation should be supported by a QA/QC system and
be fully documented. Such practices are now commonplace
for geochemical sampling and analysis but less commonly
applied to density studies. QA/QC processes should be
implemented at each step and should include:
106
process design
detailed documentation of sampling and measurement
procedures, as would be expected for geochemical
data
testing of methods prior to implementation of the
system
regular calibration and validation
daily checks on scales and balances using standard
samples of known weight (ie calibration standards)
daily calibration of geophysical tools, the sand used in
the sand replacement method, etc
repeated measurements at the end of the day or round
if a water displacement method is the primary method,
rough measurements of core length and diameter
can be used to check the volume and density of the
samples and provide a reality check on the primary
measurements; this assists with the identication of
spurious data
duplicate measurements
duplicate measurements in the eld by a second
method to validate the result of the primary method (ie
internal check samples); if possible, the second method
should be chosen to test the recognised weaknesses in
the regular method, for example, a method that has
the risk of subsampling bias should be checked with a
method that measures a larger volume of sample
duplicate measurements made by commercial
laboratories (ie external check samples)
independent audit of processes

such audits are required for Resource evaluation
under NI43-101 or JORC (Table 1).
AUDIT LIST
Auditing of a density measurement program should be
undertaken regularly by both internal and external parties.
The audits should consider:
sample or site selection bias

sample description and categorisation
calibration and use of scales
appropriateness of the density methods
application of the described processes
record keeping and calculations
evidence of QA/QC
evaluation of QA/QC and check data.
Experience indicates that common problems for density
determination on Mineral Resource projects include:
no calibration of scales
no record of calibration
scales not level nor in a constant temperature environment
no process to ensure representative sampling
inappropriate methods applied for soft, porous or broken
samples
no moisture content data available to correct density to a
dry basis
moisture content measured for different samples to those
used for the density measurement
calculation errors
no alternative data or check method to support the
primary method
lack of description of the samples
no validation of wax density over time and different
batches of wax
use of hairspray that is ineffective in sealing the samples
during immersion
use of food wrap to seal samples that results in bubbles
that bias the results
inadequate calibration or verication of geophysical
methods
no correction for water absorption
no correction or allowance for cavities or porosity
insufcient samples.
DISCUSSION
There is a broad range of methods available for the
measurement of bulk density. Whilst guidelines may be
provided for matching appropriate methods to sample or
material type, a prescriptive approach to method selection is
not possible. The choice of methods for a particular deposit
or project will depend on the physical characteristics of the
ore, the type of samples that are available or may reasonably
be collected, the equipment that is available and the stage
of development of the project. The guiding premise should
be that determination of the bulk density of the deposit is as
important a part of the evaluation program as determination
of the volume or the grade of mineralisation.
Competent materials are easily assessed by core drilling,

with determination of bulk density by the calliper method
or by any of the water displacement methods. The calliper
method can be sensitive to errors in the estimation of
average core diameter and is therefore more suited to high
quality (HQ) core or larger sizes. The details of the water
displacement procedure that is selected will depend on the
type of equipment available. For example, the design of the
scales will determine whether it is more practical to weigh
the water vessel on the pan of the scales (water displacement
method 6) or to weigh the sample suspended in water
beneath the scales (water displacement method 3). Water
displacement methods are useful in situations where no drill
core is available. Hand specimens may be collected from
surface outcrop, pits or shafts and measured; however, there
is always the risk of a biased sample selection.
Porous rocks or materials with high moisture content are
potentially more difcult to measure if only small samples
are available. Water displacement methods involving waxing
can be effective if the wax forms a good seal over the whole
of the sample. Waxing may also assist with handling of some
weak or crumbly specimens. Determining the bulk density of
materials with large voids or vughs is particularly difcult,
and measuring small samples may be inadequate. In these
cases, the core tray method, geophysical logging or bulk
sampling may be the only reliable methods.
In all methods involving the assessment of small samples,
the key to reliable results is the establishment of a clear,
step-by-step procedure, careful recording of all weights and
measures and supervision by technical personnel. Geological
materials are rarely uniform, so careful observation is required
to ensure that the methods employed are appropriate for all
the samples being measured. The use of at least two different
methods is recommended to demonstrate that consistent
results can be obtained.
Large-scale methods of determining bulk density are
good at minimising errors due to small-scale variability, but
they are often difcult to implement until the latter stages
of a project due to cost and environmental constraints.
Accurate recording of material movements and calibration of
weighing equipment are important. If the moisture content
of the material being mined is high, a systematic program of
subsampling will be required to determine the correct dry
weight of the mined material.
For many advanced projects, down hole geophysical
logging is the preferred method of measuring bulk density.
If properly calibrated, the method produces reliable results
for a wide range of material types and is quick and cost
effective. Logging produces a continuous prole of bulk
density in each drill hole and delivers the data in digital
format. In addition, bulk density data is easily acquired
simultaneously with the natural gamma radiation logs
that are commonly used for stratigraphic correlation in
Australian iron ore provinces. The main practical problem
is the potential instability of the drill hole walls and the risk
of losing a probe down a hole. Loss of a density logging tool
down a hole is a nancial cost to the project and also creates
an environmental hazard that may require permanent
sterilisation of the surrounding rock mass.
Bulk density within mineral deposits is commonly a highly
variable parameter. Poor estimates of bulk density result in
poor estimates of tonnage. Errors in the interpretation of the
geology of mineral deposits typically have the most impact
on the denition of margins of the ore. By contrast, errors in

the estimation of bulk density may occur across the entire
mineralised zone, thus affecting not only the total Resource or
Reserve estimate, but also the mine schedule and incremental
mine design.
CONCLUSION
The importance of dry bulk density in the estimation of
Mineral Resources should not be overlooked. A wide variety
of methods for measuring the density of rocks is available, each
with its own practical limitations. Selection of an appropriate
method depends on the size and physical characteristics
of the available samples. QA/QC principles and methods
commonly used for geochemical analysis should also be
applied to density determination and estimation. Repeat and
duplicate measurements, sample checks and independent
audits are all important tools for improving the reliability of
density estimates, as well as meeting regulatory requirements
and investor expectations.
As with other aspects of Resource and Reserve estimation,
the collection of bulk density data and the extrapolation of
that data across the whole deposit must be controlled by a
sound knowledge of the geology of the deposit.
ACKNOWLEDGEMENTS
The authors would like to thank the many mining industry
professionals who contributed their experience and
knowledge to this paper and the reviewers for their helpful
comments.
REFERENCES
American Society for Testing of Materials, 1979. ASTM D167-73
Determination of the specic gravity of lump coke samples.
American Society for Testing of Materials, 2011. ASTM D6752/
D6752M 11 Standard test method for bulk specic gravity and
density of compacted bituminous mixtures using automatic
vacuum sealing method.
Anon, n/d. Area of a circular segment circular segment area
calculator [online]. Available from: <http://www.had2know.
com/academics/area-circular-segment-formula.html>
[Accessed: 15 April 2013].
Bevan, P A, 1994. The weighting of assays and the importance of both
grade and specic gravity, CIM Bulletin, 86(97):88-90.
Dadson, A S, 1968. Ore estimates and specic gravity, in Ore Reserve
Estimation and Grade Control, special volume 9 (The Canadian
Institute of Mining, Metallurgy and Petroleum: Montreal).
Lipton, I T, 1997. A review of density determination methods for
iron ore deposit evaluation, in Proceedings Iron-making Resources
and Reserves Estimation, pp 57-66 (The Australasian Institute of
Mining and Metallurgy: Melbourne).
Lipton, I T, 2000. Modelling bulk density the importance of
getting it right, in Proceedings Fourth International Mining Geology
Conference, pp 291-297 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Lipton, I T, 2001. Measurement of bulk density for resource
estimation, in Mineral Resource and Ore Reserve Estimation The
AusIMM Guide to Good Practice (ed: A C Edwards), pp 57-66 (The
Australasian Institute of Mining and Metallurgy: Melbourne).
107
Lipton, I T, Shaw, W J and Waltho, A E, 1999. Characterisation of ore

types and beneciation behaviour using normative minerals, in
Proceedings PACRIM 99, pp 427-434 (The Australasian Institute of
Mining and Metallurgy: Melbourne).
Standards Australia, 2004. AS 1289.5.3.1-2004 Methods for testing of

soils for engineering purposes. Method 5.3.1: Soil compaction
and density tests determination of the eld density of a soil
sand replacement method using a sand-cone pouring apparatus.
Morris, R C, 1980. A textural and mineralogical study of the

relationship of iron ore to banded iron formation in the
Hamersley iron province of Western Australia, Economic
Geology, 75:184-209.
Standards Australia, 2005a. AS 2891.9.1-2005 Methods of sampling

and testing asphalt determination of bulk density of compacted
asphalt waxing procedure.
Pevely, S, 2001. Ore Reserve, grade control and mine/mill

reconciliation practices at McArthur River Mine, NT, in Mineral
Practice (ed: A C Edwards), pp 567-578 (The Australasian Institute
of Mining and Metallurgy: Melbourne).
Preston, K B and Sanders, R H, 1993. Estimating the in situ relative
density of coal, Australian Coal Geology, 9:22-26
Read, H H, 1970. Rutleys Elements of Mineralogy, 26th edition (Thomas
Murby & Co: London).
Samworth, J R, 1992. The dual-spaced density log characteristics,
calibration and compensation, The Log Analyst, 33(1).
108
Standards Australia, 2005b. AS 2891.9.2-2005 Methods of sampling

asphalt presaturation method.
Standards Australia, 2005c. AS 2891.9.3-2005 Methods of sampling
asphalt mensuration method.
Standards Australia, 2005d. AS 4133.2.1.2-2005. Australian Standard
Methods of testing rocks for engineering purposes, Method
2.1.2: Rock porosity and density tests determination of rock
porosity and dry density saturation and buoyancy techniques.
HOME
Collection of Geotechnical Data from

Drill Holes
A van As1
ABSTRACT
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1. Chief Advisor Geotechnical Engineering and Cave Mining, Rio Tinto, 123 Albert Street, Brisbane Qld 4000. Email: [email protected]
INTRODUCTION
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FIG 10 - Joint roughness as categorised by Bartons tunnelling quality index (Q) and Laubschers mining rock mass rating (MRMR) system.
FIG 11 - Examples of major structures observed in core. (A) Crushed zone, (B) shear zone.
The major structure log is not included in the detailed
structure logging and should be prepared separately by the
geologist.
Major structure logging parameters

The following elds are recorded to describe the type and
characteristics of these structures. Not all of these parameters
are essential for geotechnical analyses pertaining to some
mining methods, so those required for all methods are
italicised:
Depth the depth is the midpoint of the upper boundary

of the structure.
Length of defect (also referred to as intercept length) the
apparent thickness of the defect is measured in millimetres parallel to the axis of the core.
Structure type/inll type and quality zones of broken

core caused by drilling difculties or the intersection
of sets of joints are not included as major structures.
Identifying the type of major structure can be difcult
in most cases impossible because of the scale of
the structure and limited exposure in the core. Hence,
logging of major structure type tends to focus more on
the character and quality of the structure than its actual
type. As a result of this dilemma, different approaches to
identify and characterise major structures are found in the
literature. The two most common are:
1. structure type shear zone:
crushed zone
altered zone
clay bands
117
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FIG 1 - Examples of various diamond core orienting tools. (A) The downhole spear. (B) The Ezy-MarkTM tool. The orange section has pins that conform to the shape
of the core stub, as seen in (C) below. The orange section can be left in the core tray as a proxy for a core block, thereby preserving the orientation with the core.
(C) Ezy-MarkTM tool with permanent pins and crayon. Note the three aligned balls on the right-hand side of the instrument. (D) The Verti-OriTM tool. (E) Ballmark
soft metal washer (left) with reference mark (hole) and orientation indentation (near finger). The right-hand picture shows the ceramic ball in the track where
it freely rotates until the orientation is made. (F) The ReflexTM tool. (G) The AceTM tool (left) and stopwatch (right). (H) The ORIshotTM tool showing orientation
instruments and handset.
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Use and Abuse of Oriented Drill Core| B K Davis
Details of the methods and potential associated

problems
The downhole spear
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FIG 2 - (A) to (E) show various marks made using a downhole spear that has had either a hardened metal tip or a crayon tip. (A) Smeared crayon mark defining a poor
quality orientation mark, which is too wide to confidently locate the bottom-of-core position. (B) Unusable mark produced by a metal-tipped spear in the centre of
a core interval. (C) Several metal-tipped spear impact marks at various positions across a core break. The impact marks define a line and are a result of dropping the
spear from too far up the hole. (D) Elongated metal-tipped spear impact mark defining an unusable orientation mark in the centre of the core break. (E) Smudged
crayon impact mark. Although the inclination would be to use the point at which the mark intersects the edge of the core, this is not correct and the mark should be
treated as unusable. (F) Example of a poorly designed spear comprising an impact tip of a blunt crayon loosely attached to the spear with gaffer tape.
123
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FIG 3 - Orientation shroud for the Ezy-Mark tool showing viewing window
where a high-confidence orientation mark is indicated by the alignment of the
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FIG 4 - The poorly designed spear in Figure 2F has produced the mark shown
here. The orientation mark was originally a yellow spot but the mark has been
overwritten by drillers trying to be helpful through painting around the mark.
Both the state of the spear and the mark should have been identified by the
geologist in charge and rectified.
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FIG 5 - Examples of driller identification on core blocks at the break where the orientation was taken. RK has produced an unusable mark whereas Henry has
produced a good mark.
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Problems at the marking up stage the orientation

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FIG 6 - Example of a very discrete orientation mark near the edge of the core. This
mark was allegedly made by a spear but is more likely to have been fabricated.
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Final comments on the surveillance of the orientation process

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What does the orientation line represent?

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several runs. For example, if using a 6 m core barrel, at least

20 m of angle iron should be available to lay the core out
on (Figure 8). This allows four marks (three internal marks
plus one from the end of the interval above or below) to be
assessed for consistent bottom-of-hole positions. Alternatives
to angle iron include the use of a sheet of corrugated or ribbed
metal that allow successive runs to be aligned adjacent to
each other (Figure 9).
FIG 7 - The core either side of the angled break (circled) fits together tightly.
There is a lack of quality control associated with the red orientation line,
however, as it shows misalignment across the break. The core across the breaks
had not been pushed together to check the joins prior to marking. As an aside,
this mistake was noted while the geologist concerned was claiming that there
were no core orientation issues.
of core to the top of core. Secondly, if geologists are not made
aware of the non-industry procedure of swapping the line
from bottom of core to the top, they will place the core in
an orienting frame in a position that is rotated 180 degrees
from its true orientation. Similarly, Kenometer and alphabeta strips typically measure alpha (apparent dip) and beta
(apparent dip-direction) values relative to a bottom-of-core
line, not top-of-core.
The situation of orientation lines on the top of the core
may seem uncommon but the author has seen this on several
occasions.
FIG 8 - Core laid out in a piece of angle iron to the left of the trays from which it
was taken. The oriented marks are then lined up and the edge of the angle iron
used as a guide to draw the orientation line.
Case study
The author experienced an even more incredible situation
when working on the initial holes in a major orogenic gold
deposit in the Eastern Goldelds of Western Australia. After
spending a day or so in the balmy 40+ degree summer
heat in the core yard, the data was not making sense. When
querying the resident exploration manager about the core
orientations, the author was told that the geologist wanted to
view the orientation line when he was looking at the core so
he changed it from bottom-of-core to top-of-core after the rst
seven holes. Clearly, this is an inappropriate practice.
The marking-up process briey described below follows
industry convention and pertains to bottom-of-core
orientation marks and lines.
Marking the orientation line

The orientation line should represent the result of joining up
condently made orientation marks. Since each orientation
mark has an unknown accuracy, it can only be accepted if it
correlates with at least one but preferably two or more of the
other adjacent orientation marks; that is, a straight line must
connect the orientation marks when a coherent core between
the marks is condently reassembled.
To make an orientation line, the core should be reconstructed
between the orientation marks. The best method for this is to
use a continuous length of angle iron that can accommodate
FIG 9 - Core laid out on a sheet of iron with angular corrugations. The
orientation marks are aligned on the top side of the core (still bottom-of-hole
but the core is rotated around). A piece of iron is then rubbed against the core
and produces a non-temporary line on pieces of adjacent core. This line can
then be checked against the marks for consistency and over-written in ink if
the marks are of good quality.
The procedure for marking orientation lines should
incorporate the following:
Placing a small pencil mark on the side of the core where

the interpreted bottom of the hole is. This is done by
129
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FIG 10 - Example of core spin that has induced circular marks on the core
either side of the break.
FIG 11 - Example of a portion of core showing evidence for core-spin. The spin
marks were due to the rotation of core from the previously drilled interval. The
piece of core in this figure represented the start of a new core run and did not
undergo rotation.
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FIG 12 - Poor geological practice exemplified by misalignment of a core

orientation line across a core break. Note that the core fits together well,
and when it does the pyritic vein under the thumb is continuous.
FIG 14 - Example of high-confidence orientation lines terminating at core
breaks that could be confidently reassembled. The breaks are shown in the
oriented core with the orientation lines at the top of the figure. Terminating the
lines has meant that a large interval of coherent core has not been oriented.
In this case, the lack of orientation line was a concern because the unmarked
interval contained a number of important structures needing to be measured.
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Designating the quality of the orientation line
FIG 13 - An example of a dislocated orientation line that is hard to explain.

Either the core had not been diligently reassembled, or the orientation line had
been drawn from two different directions and did not match. In both cases the
orientation lines are of no confidence.
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FIG 15 - Oriented core showing a red downhole spear orientation mark on the
core break. The core break represents the start of a new core run and progressively
deeper portions of core are located in a direction away from the mark.
Consequently, the orientation line on the outside of the core that points towards
the orientation mark is incorrect because it indicates an uphole direction.
Collection of structural data from oriented core

Methods of data collection/measurement and comments on
interpretation
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FIG 16 - Examples of problems arising from a core frame that contains magnetic material (left). The yellow item is a pen magnet. The upper-right photo shows
the compass several centimetres away from the core frame, whereas the lower one shows the compass resting against the core frame. The two photos show that
the needle orientation in the compass can be out by as much as 30, depending on proximity to the core frame.
FIG 17 - Oriented core inside a KenometerTM. This device allows for easy measurement of alpha and beta angles.
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FIG 18 - Example of a small circle distribution of data due to measurements

being taken from core that has been rotated. The centre of this distribution is
the rotation axis, which is the orientation of the drill hole axis.
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Exploration and
Data Collection
The Resource
Database
Geological
Interpretation
and Modelling
Mineral Resource
Estimation,
Classification and
Reporting
Modifying Factors

Assessments
Ore Reserve
Estimation,
Classification and
Reporting
Monitoring the
Resources and
Reserves
Grade Control,
Production and
Reconciliation
Chapter 3 | Geological Interpretation and

Geological Modelling
Overview Geological Interpretation and Geological Modelling
E J Cowan
137
Geological Interpretation for Resource Modelling and Estimation
J H Duke and P J Hanna
145
Best Practice in Coal Exploration and Resource Evaluation
A Waltho, S Kristensen and

C Harman
155
The Dos and Donts of Geological and Grade Boundary Models and What You Can Do About It
J F H Barnes and B L Gossage
175
A Checklist for Grade Control
H Hoogvliet, A Grieve and D Sims
189
Calculated Mineralogy and Its Applications
S Halley
199
X-Ray Plunge Projection Understanding Structural Geology from Grade Data
E J Cowan
207
Practical Implicit Dyke Modelling for Resource Estimation Newmont Boddington Gold, Western Australia
D J Haddow and E J Cowan
221
The Pursuit of Best Practice and Use of Innovative Techniques Case Studies in Geological Interpretation and
Modelling, Gold Fields Growth and International Projects
R Gradim, J Donaldson, J Levett,

M Briggs, M Crawford, M Dusci and
A Trueman
229
Wireframe-Free Geological Modelling An Oxymoron or a Value Proposition?
E J Cowan, K J Spragg and

M R Everitt
247
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and Geological Modelling
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2. Adjunct Senior Research Fellow, School of Geosciences, Monash University, Clayton Vic 3800.
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Chapter 3| Geological Interpretation and Geological Modelling
Computer-based methods
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FIG 1 - The definition of domain boundaries for different

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Geological Interpretation for Resource Modelling and Estimation| J H Duke and P J Hanna
FIG 3 - Rendered 3D view of wireframed domain used as a grade domain

boundary in modelling a porphyry Cu-Au deposit.
FIG 2 - (A) Coal interpretation could be as A1 and A2 or as A; (B) phosphate

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FIG 5 - Variogram of assay values along strike in a base metal deposit

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Diagram for grouping mineral deposits.
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151
TABLE 1
Preliminary comparison of resource modelling requirements for three types of mineral deposits.
Criteria
Coal and other seam deposits
Previous metal vein
Porphyry Cu/Au
Data characteristic tSampling on a ply basis

tBoreholes typically 400 - 500 m apart
tOften every section hold open
tGeophysics in every hole
tBorehole typically 50 - 100 m

tDifficulty obtaining reliable samples
tLow average concentration and high variance of
Au and Ag
tSkewed distribution of assay values
tBoreholes typically 50 - 100 m apart

tLong mineralised intercepts of low-grade values
Spatial continuity/ tGood continuity along seams thickness

variography
typically 800 - 1200 m variogram range
tModerate continuity of mineralisation down dip

and along strike
tQuite good continuity of mineralisation,

particularly vertically
tOften diffuse definition of concentric domains
based on grade cut-off and geology
tBarren intrusives and zones of sheeted veins
Domaining
tSharp roof and floor boundaries except for

plies/splits
tFloors, roofs and thickness models are gridded
from boreholes intercepts
tUsually flat lying to 10 degree dips may be
faulted
tUsually higher-ranking coals (anthracite) are
folded to any extent (eg in the Rockies)
tOften sharp definition of overly vein structure

although internally there may be complex
intermingling of ore and waste
tVein outlines, vein splitting, faulting
Interpretation
focus
tFault definition often inferred by magnetics,

photo-interpretation, etc
tWashouts
tWeathering profile
tIntrusives
tCharacterising grade distribution

tDefining concentric grade zones
tIdentifying isolated extreme values
tIdentifying higher-grade concentrations in
tStudy of grade distribution along folds and across concentric zones
tCharacterising grade distribution in sheeted veins
faults
Grade estimation
requirements
tCoal quality variables, ash, moisture and sulfur
tHandling extreme values

tGrade estimation along folds and across faults
tDefining concentric grade zones

tIdentifying higher-grade concentrations in
concentric zones
tCharacterising grade distribution in sheeted veins
Grade estimation
requirements
tCoal quality variables, ash, moisture and sulfur
tHandling extreme values

tGrade estimation along folds and across faults
tTop cut on Au, soften grade domains with 10 m

search outside, multiple searches from 50 m to
120 m
Tonnage factors
tCoal specific gravity 1.4 - 1.6
tSpecific gravity typically 2.7 - 2.8
tSpecific gravity typically 2.6 - 2.7
Mining factors
tGeotech, gas, water, degree of faulting
tMinimum mining thickness, wallrock dilution,

geotech, extent of faulting
tLow-grade economics highly susceptible to metal

price fluctuations
Environmental
factors
tSulfur, spoilt to ore ratios, dewatering,

rehabilitation
tTrace elements and treatment wastes as possible

contaminants
tLarge-scale mining size of waste dumps and

possible water problems
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Best Practice in Coal Exploration and

Resource Evaluation
A Waltho1, S Kristensen2 and C Harman3
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1. FAusIMM, Chief Geologist Energy and Minerals Exploration, Rio Tinto, 123 Albert Street, Brisbane Qld 4000. Email: [email protected]
2. MAusIMM, Principal Geologist Coal Exploration, Rio Tinto, 1 Research Avenue, Bundoora Vic 3083. Email: [email protected]
3. MAusIMM, Senior Project Geologist Coal Exploration, Rio Tinto, 123 Albert Street, Brisbane Qld 4000. Email: [email protected]
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FIG 1 - Sedimentary rock identification flow chart used to improve the consistency of lithological descriptions in drill logs (Ward et al, 1986).
161
FIG 2 - Grain size scale for clastic sediments (after Wentworth, 1922).
TABLE 1
Standard terminology for describing bedding thickness and inclination
(New Zealand Geotechnical Society).
Bedding thickness terms
Term
Bed thickness
Thinly laminated
<2 mm
Laminated
2 - 6 mm
Very thin
6 - 20 mm
Thin
20 - 60 mm
Moderately thin
60 - 200 mm
Moderately thick
0.2 - 0.6 m
Thick
0.6 - 2.0 m
Very thick
>2.0 m
Bedding inclination terms
Term
FIG 3 - Example of a reference card that may be used to

assist with grain size estimation while logging.
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162
Inclination (from horizontal)
Subhorizontal
0 - 5
Gently inclined
6 - 15
Moderately inclined
16 - 30
Steeply inclined
31 - 60
Very steeply inclined
61 - 80
Subvertical
81 - 90
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FIG 4 - Planar bedded laminate (30per cent fine sand) from the
Western coalfield of the Sydney Basin (Ward et al, 1986).
FIG 5 - Laminite (50per cent sand) exhibiting wavy bedding,

Western coalfield, Sydney Basin (Ward et al, 1986).
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TABLE 2
Standard weathering description terminology (New Zealand Geotechnical Society).
Scale of rock mass weathering
Term
Grade
Abbreviation
Description
Unweathered
(fresh rock)
UW
Rock mass shows no loss of strength, discolouration or other effects due to weathering. There may be slight
discolouration on major rock mass defect surfaces or on clasts.
Slightly weathered
II
SW
The rock mass is not significantly weaker than when fresh. Rock may be discoloured along defects, some of which may
have been opened slightly.
Moderately weathered
III
MW
The rock mass is significantly weaker than the fresh rock and part of the rock mass may have been changed to a
soil. Rock material may be discoloured and defect and clast surfaces will have a greater discolouration, which also
penetrates slightly into the rock material. Increase in density of defects due to physical disintegration.
Highly weathered
IV
HW
Most of the original rock mass strength is lost. Material is discoloured and more than half the mass is changed to a
soil by chemical decomposition or disintegration (increase in density of defects/fractures). Decomposition adjacent to
defects and at the surface clasts penetrates deeply into the rock material. Lithorelicts or corestones of unweathered or
slightly weathered rock may be present.
Completely weathered
CW
Original rock strength is lost and the rock mass changed to a soil either by decomposition (with some rock fabric
preserved) or by physical disintegration.
Residual soil
VI
RS
Rock is completely changed to a soil with the original fabric destroyed (pedological soil).
163
FIG 6 - Procedure for measurement and calculation of rock quality designation (after Deere and Deere, 1988).
TABLE 3
Standard terminology and field tests for estimating rock strength from drill core (New Zealand Geotechnical Society).
Rock strength terms
Term
Field identification of specimen
Extremely strong
Can only be chipped with geological hammer.
Unconfined uniaxial
compressive strength qu (MPa)
Point load strength

IS(50) (MPa)
>250
>10
Very strong
Requires many blows of geological hammer to break it.
100 - 250
5 - 10
Strong
Requires more than one blow of geological hammer to fracture it.
50 - 100
2-5
Moderately strong
Cannot be scraped or peeled with a pocket knife. Can be fractured with single firm blow of
geological hammer.
20 - 50
1-2
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Can be peeled by a pocket knife with difficulty. Shallow indentations made by firm blow
with point of geological hammer.
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Crumbles under firm blows with point of geological hammer. Can be peeled by a pocket knife.
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description required)
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TABLE 4
Minimum geophysical logging suite for coal exploration boreholes.
Logging
sonde
Application
Natural
gamma
Lithological interpretation, mapping lithological variation and

boundaries, assessment of coal ash content, coal seam correlation,
recognition of tuffs that may act as useful marker beds for
stratigraphic correlation.
Density
In situ bulk density measurement, estimation of coal ash content,

seam correlation, identification of sideritic beds and bands.
Calliper
Measurement of borehole diameter. Detection of wall caving, which

may influence the quality of other logs, particularly density logs.
Resistivity
Accurate delineation of lithological boundaries, particularly coal seam

roof, floors, stone bands and partings.
Sonic
Estimation of rock strength and excavation characteristics. Provision of

two way travel time data for seismic data depth correction.
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FIG 12 - Dipmeter data may be presented as tadpole plots or stick plots, which
show the apparent dip of logged feature in a nominated viewing plane (Rider
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FIG 1 - Comparison of ungrouped and grouped geological logging data in a typical cross-section. (A) Ungrouped
geological data; (B) grouped geological data (flow-tops light blue, post-flow intrusions pink, flows purple).
176
The Dos and Donts of Geological and Grade Boundary Models and What You Can Do About It| J F H Barnes and B L Gossage
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TABLE 1
Dos and donts of organising your data.
Do
Dont
Ensure that all data has been logged or collected objectively.
Assume that orientations and structures are going to be normal to the drill section and
oblique to the drill hole direction.
If mineralisation is not irrevocably visual ensure that all drilling has been assayed
throughout its length there is no argument for not collecting a sample for a $20 assay
when it has cost you $250 to get the metre of material into the tray.
Make the mistake of preferentially sampling because it is believed that the

mineralisation is visual. Not committing to the final $20 to get assay data is not a cost
saving it is a potentially critical error.
Ensure you have an interpreted lithology field and keep the original observations
separate.
Ignore anomalous observations, for example extreme changes in lithological thickness

from hole to hole recheck the data.
Ensure you have logged the relevant data for the different types of weathering profile.
Ensure you have a topographic model that is suitable for the project requirements.
Check that the structural measurements make sense and have been properly collected
(do the orientations match outcrop observations?).
Mix foliation/fabric measurements with joints.
Check downhole surveys for illogical/impossible direction changes.
Assume that every survey is valid, meaningful and/or correct.
Take as many density (that is bulk density and not specific gravity) measurements as
possible at least one every 3 m in core.
Mix up bulk density with specific gravity (if your rock sequence has any porosity you
need to measure bulk density not specific gravity).
Assess your data at a scale relevant to the resource requirements (dont try to
model 10 cm pegmatite veins if the project is going to be mined on 15 m benches).
Group and collate the data to simplify it before making it complex.
Get caught up in detail before sorting out the broad picture use summary logs from
the get-go.
Establish the geological, structural and mineralisation sequence as soon as

possible and continue to test the hypotheses.
Be tempted to put a fault between and parallel to two drill hole traces because the
logging does not make sense this just tells you that something is wrong.
Exhaustively check and re-check the database and view it in 3D before

doing anything in order to ensure that it all makes logical sense.
177
FIG 2 - A typical summary drill hole log.

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views through the data set). (A) All grouped lithology data; (B) unit A
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TABLE 2
Dos and donts of data review.
Do
Dont
Produce reference drill sections at an appropriate scale you may need several sheets to
display all the relevant data.
Assume that the drill section orientation is normal to the principal orientation of
lithologies, structures and mineralisation. You are very lucky if it does occur. The
reference sections are just that, a method of displaying the same types of data as those
displayed in summary logs.
Exhaustively review the data in an appropriate 3D visualisation package.
Assume that simply interpreting drill sections and then joining up the adjacent sections
to form a wireframe is the answer. If a manual method of interpretation is chosen then
this is just the beginning (you will have to recheck and re-wire in a minimum of two
other orthogonal directions).
Slice your data in multiple orientations.

Summarise the data into manageable groupings begin with simple groupings before
subdividing.
Try to immediately review the un-grouped data as you will probably suffer from
information overload.
Use colour and indicator assignment techniques to remove visual distractions do this
for each relevant set of data.
Fall victim to directional bias based on interpreting normal to the drill hole direction.
Demonstrate appropriate levels of continuity, particularly with grade data (the chances
are that the mineralisation indicator grade will be significantly lower than the economic
cut-off grade).
Try to interpret mineralisation boundaries at elevated cut-off grades (ie the potentially
economic cut-off grade) unless you can demonstrate continuity in 3D.
Check that the weathering profile looks geologically realistic it may repeat at depth.
Assume the weathering profile is simple and planar.
Remember to model the three weathering profiles.
Assume that the different weathering profiles parallel each other.
Assess your data at a scale relevant to the resource requirements.
For example, dont try to model 10 cm pegmatite veins if the project is going to be
mined on 15 m benches).
Group and collate the data to simplify it before making it complex.
Get caught up in detail before sorting out the broad picture use summary logs from
the get-go.
Establish the geological, structural and mineralisation sequence as soon as possible and
continue to test the hypotheses.
Be tempted to put a fault between and parallel to two drill hole traces because the
logging does not make sense this just tells you that something is wrong.
Continue to test your assumptions regarding the sequence of geological events.

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FIG 6 - Example of viewing data at different indicator cut-offs (plan views through complete data set): (A) indicator transform grade 0.1;
(B) indicator transform grade 0.2; (C) indicator transform grade 0.5; (D) indicator transform grade 1.0; (E) indicator transform grade 2.0;
(F) indicator transform grade 5.0; (G) indicator transform grade 10.0; (H) indicator transform grade 20.0.
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FIG 8 - Examples of boundary analyses: (A) example of a discontinuous

grade distribution across a geological boundary; (B) example of a
continuous grade distribution across a geological boundary.
FIG 7 - Example of turning off subgrade drill data to minimise

directional bias: (A) cross-section with subgrade intervals;
(B) cross-section without subgrade intervals.
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FIG 9 - Example where zone topology changes with cut-off grade: (A) grade
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FIG 10 - Comparison of indicator probability coding of drill hole samples, grade and indicator implicit modelling shells: (A) implicit grade modelling
artefacts (red) compared with indicator modelling (blue) in a zone with sparse drilling; (B) implicit grade modelling artefacts (red) compared with
indicator modelling (blue) in a zone with more closely-spaced drilling.
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TABLE 3
Dos and donts of building a geological and/or mineralisation model.
Do
Dont
Interpret the deposit in 2D on a drill section and then simply join the interpretation with
the next section. The chances are that it will look wrong in other orientations this is
particularly true for deposits with multiple, stacked zones.
At all times think about the deposit and the geology in 3D.
Try to remove as much visual distraction as possible at all times use indicators rather
than colour ranges and set the rest of the data to invisible so you can see the real
orientation of any particular set of data.
Think about the structural sequence and orientations this probably plays the crucial
role in the final 3D arrangement of the deposit.
Dont interpret the grade data in isolation from the geology and alteration.
Consider the best way to produce a realistic 3D model it may be the opposite to what
Dont resort to simple polygonal outlines on cross-sections if you have 3D modelling
might appear logical. For example, in wide, complex, multiple anastomosing shear zones tools (ie implicit modelling tools) available.
it is much better to model the undeformed lozenges in 3D than the shear zones. You
will end up with the same 3D model.
Think of the order of the geological sequence and build the model the same way,
eg build the sedimentary/layered model before intersecting it with intrusive bodies.
Check that all relevant weathering profiles have been modelled and check if they have
repeats or inversions.
Assume that weathering profiles are simple and do not repeat.
Cross-check the interpreted weathering profile with your density data look for
anomalies.
Use 3D shape modelling tools to rapidly test assumptions before committing to an
exhaustive manual interpretation often a well constrained isosurface model will be
more accurate in 3D.
Use Boolean modelling tools to intersect the geological units.
Try to manually model complex 3D cross-cutting relationships. Use of Boolean tools

should get the intersection geometries correct.
If faults are being modelled, once they have been produced as a 3D surface go back
through the drill logs to look for evidence of them. If the faults are missing
all the drilling then they probably do not exist.
Be tempted to use faults every time the current geological/mineralisation model starts
to break down and especially not parallel to and between drill traces.
As geological units are modelled in 3D, use indicator coded assay data to check the 3D
relationship between the units and the grade data are they parallel or cross-cutting?
Assume grade continuity (in a geological model) unless you can demonstrate it in 3D.
Start with a low indicator cut-off grade and then steadily increase the cut-off until the
mineralised envelope starts to break up. That is as far as you could possibly push the
cut-off grade. It will most probably be below the economic cut-off grade.
TABLE 4
Dos and donts of testing the geological model.
Do
Interrogate and slice the model in multiple orientations as a minimum, the three
principal orthogonal directions; for example, parallel to the drill hole section, normal to
the first sectional orientation (long-section) and in plan.
Dont
Assume that if the model looks good on the drill section it will be ok in other directions
go and check.
Check that the interpreted geological sequence is honoured in 3D.

Check that the wireframes solids are closed if they are to be used to build a 3D block
model.
Ignore wireframe volume errors unless the model is just to be used as a visual aid.
Check that the data is honoured by the geological model, particularly if it has been
developed by manual methods, including the interpretation being snapped to drilling.
Assume that outlines that have been manually digitised will honour data that is located
off-section.
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FIG 11 - Example of a flawed sectional mineralisation interpretation when viewed in another orthogonal direction (plan):
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CONCLUSIONS
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TABLE 5
Dos and donts of testing the mineralisation model.
Do
Dont
Check the mineralised zone interpretation in multiple orientation displayed with the 3D
geological model.
Assess the mineralisation model purely using grade or indicator data remember that it
is part of a 3D deposit model.
If possible, superimpose several different approaches to see which is most robust from a
geological perspective as well as with the source grade data.
Choose the first approach that appears to fit the data test alternatives.
Check the preferred interpretation in 3D and by slicing with both grade and indicator
data.
Forget that the data is part of a 3D deposit and the drill information may be off-section
from the profile outline being displayed on screen.
Assess the assay data captured within the interpreted zones to ensure the data is
geologically and statistically reasonable and consistent with your assumptions (for
example, a diffuse zone of mineralisation with a gradational change in grade).
Check model against individual variables in a polymetallic deposit if a grade equivalent
has been applied and a single mineralisation constraint has been constructed.
Assume in a polymetallic deposit that all variables of interest are perfectly correlated
and review the constructed mineralisation model against only the calculated grade
equivalent variable.
187
FIG 12 - Suggested project flow sheet.

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A Checklist for Grade Control

H Hoogvliet1, A Grieve2 and D Sims3
ABSTRACT
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2. Senior Consultant Geology, Xstract Group, Level 11, 140 St Georges Terrace, Perth WA 6000. Email: [email protected]
3. FAusIMM(CP), Director, Dale Sims Consulting Pty Ltd, 36 Bayswater Road, Bolwarra NSW 2320. Email: [email protected]
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REFERENCES
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PLQH*RVRZRQJ,QGRQHVLDLQProceedings Seventh International
Mining Geology ConferenceSS7KH$XVWUDODVLDQ,QVWLWXWH
&DWWR%DQG&KXUFK32EWDLQLQJDUHSUHVHQWDWLYH5&VDPSOH
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FIG 1 - Stacked spectra of chlorite, showing the characteristic absorption features at 2250 and 2340 nanometres (nm). Note how the
wavelength at the minimum point for the 2250 nm feature shifts from 2250 nm for the blue spectrum up to 2260 nm for the red spectrum.
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FIG 2 - 3D view showing the distribution of chlorite-bearing spectra from the Salt Creek Gold deposit. This view is looking directly down the
plunge of the Salt Creek dolerite sill. The sample points are coloured by the wavelength of the 2250 nm Fe-OH absorption features from the
short-wave infrared (SWIR) spectra, as shown in Figure1.
200
Calculated Mineralogy and Its Applications|S Halley
FIG 3 - Cross-section of Salt Creek showing the upper and lower boundaries of the fractionated quartz dolerite unit
and the modelled shear zone. The drill strings are coloured by gold assays; blue <0.2 ppm Au, red >2.0 ppm Au.
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FIG 4 - Feldspar-sericite K/Al versus Na/Al molar ratio plot for the pler assay data, also showing the projected compositions of some
common alteration minerals. This plot forms the basis for graphically defining the alteration mineralogy signatures for all the assay intervals.
FIG 5 - Alteration mineral classifications from molar ratio plots on a long-section of the pler deposit.
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FIG 6 - pler long-section with copper assays: blue = Cu < 100 ppm, red = Cu > 1500 ppm.
FIG 7 - pler long-section with gold assays: blue = Au <0.1 ppm, red = Au >1.5 ppm. The red shape is a volume that encloses assay intervals
where the alteration has been geochemically classified as strong illite.
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FIG 8 - Ternary plot of Cu:Fe:S from the Haquira East Porphyry Copper Deposit. The grey points are samples with
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FIG 9 - Copper versus gold (left) and copper versus silver (right) scatterplots from Haquira East showing red points (defined as the chalcopyrite group) and
purple points (defined as the bornite group) from the ternary plot in Figure 8. Note the bimodal distribution on both plots.
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FIG 10 - The Haquira East sulfide mineralogy predicted from the ternary plot in Figure 8 and the scatterplots
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FIG 11 - The modelled chalcopyrite shell from Haquira East. Assay intervals within this shell contain bornite (Figure 10) or chalcopyrite with only minor pyrite.
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X-Ray Plunge Projection

Understanding Structural Geology
from Grade Data
E J Cowan1,2
ABSTRACT
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INTRODUCTION
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DOWN-PLUNGE PROJECTION METHOD

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PERSPECTIVAL ANAMORPHOSIS
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3. This paper focuses on grade data. Additional data such as logged lithological data are
used in the analysis where available; however, analytical data especially assays are
the only geological data available at all exploration and mine sites. These analytical data
sets are much more reliable than subjectively obtained logged data.
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a swirling outcrop pattern in the Pennsylvania Piedmont
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X-Ray Plunge Projection Understanding Structural Geology from Grade Data| E J Cowan
FIG 1 - Down-plunge projection of a mapped lithological unit, with the down-plunge direction indicated by the red arrow in each image: (A) map view; (B) downplunge view to 25 to North reveals a fold profile view; (C) oblique view; (D) modelled folded unit using down-plunge projection view as reference line using an
implicit modelling software. Fold profile section is orthogonal to the fold plunge indicated by the red arrow. Map courtesy of Ragan (1985, Figure X14.2).
FIG 2 - (A) Hans Holbein the Youngers painting The Ambassadors (located at the National Gallery, London) depicts an anamorphic image of a skull that can only be
recognised as a skull at a very low viewing angle of 2 from the surface of the painting in the direction of the red arrow; (B) an undistorted view of the skull viewed
along the arrow in (A). Both images are in the public domain (Wikipedia contributors, 2011a, 2012a).
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FIG 3 - Recent application of perspectival anamorphosis in advertising and in the arts. (A) Anamorphic projection is used for a Panasonic advertising logo at a rugby
match so that it appears upright and undistorted from the viewpoint of the television audience. At any other viewing angle, the logo appears distorted (GrassAds,
2013). (B) Felice Varini uses architecture and even entire villages as his canvases for his large-scale paintings (Varini, 2012). Varinis art makes sense from a particular
vantage point, in this case revealing a bullseye ring pattern (left), but the paint marks make little geometrical sense from any other viewpoint (right) (from Slade,
2013). (C) Anamorphic chalk drawing on a road surface by artist Leon Keer viewed from the optimal vantage point (Wikipedia contributors 2011b); to see how this
painting appears from other angles see Keer (2012). (D) A sculpture by Shigeo Fukuda is a jumbled mess in the foreground, but the mirrored reflection provides an
alternative view where it appears as an undistorted piano (Wikipedia contributors, 2012b).
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4. As at May 2013, a Google image search for down-plunge projection, down plunge
projection or down-structure method (all in quotation marks) yielded no illustrations of

ore deposits. A search comprising down-plunge projection with the word ore using the
online Monash University library resulted in no journal publications on ore deposits that
have used this method for the analysis of mineralisation geometry.
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5. This is defined by three vectors that are not mutually orthogonal and of unequal length.
6. OpenGL is a cross-language, multi-platform application programming interface for
Such symmetry results only in localised lineation orientations.
rendering 2D and 3D computer graphics.

211
FIG 4 - A selection of fabric symmetries of geological structures: (A) bedding fabric representing axial symmetry, but linear axis is absent; (B) pure linear fabric with
axial symmetry; (C) sheath fold with extreme stretch representing orthorhombic symmetry; (D) conjugate fault system with orthorhombic symmetry; (E) upright fold
with orthorhombic symmetry; (F) faulted bedded fabric with monoclinic symmetry; (G) C-S fabric with monoclinic symmetry; (H) overturned folding with monoclinic
symmetry; (I) multi-phase folding with triclinic symmetry. All examples except (A) and (I) display a first-order linear fabric of either elongation or intersection
lineation that can be used for down-plunge projection. In (A) linear fabric is absent and in triclinic fabric (I) there may be local linear axes as indicated by the arrows.
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FIG 5 - Schematic cross-sectional view of a computer monitor showing how

maximum intensity projection (MIP) works with grade point data. The highest
grade point values from the cloud of grade data are projected to the front of the
computer monitor along a path orthogonal to the monitor (ie parallel to the
z-axis of the monitor coordinates).
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intensity projection rendering: (A) traditional vertical section view reveals some intersecting patterns of grade continuity, but patterns are not clear; (B) the
longitudinal section reveals the plunge of grade continuity indicated by the arrow; (C) viewing down-plunge, parallel to the arrow shown in (B); (D) interpreted
bedding (solid black lines) and fault (dashed grey lines). The grade lineation (seen in B) is the result of intersecting bedding and faults developed in the fold hinge,
but this structural relationship can only be seen in the very narrow view-line parallel to the plunge of the fold (C, D).
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FIG 8 - Structural interpretations of the plunge-orthogonal maximum intensity projection grade renderings of a wide range of commodities. Dark grey lines are
faults; white lines are traces of bedding or foliation; dashed black lines are traces of axial planes. Scale bars are all 100m and views are at or near entire deposit scale.
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1. MAusIMM, Resource Development Geologist, Department of Resource Development, Newmont Boddington Gold, PO Box 48, Boddington WA 6390. Email: [email protected]
INTRODUCTION
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FIG 1 - Location map showing the position of Newmont Boddington Gold in Western Australia.
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BACKGROUND
FIG 2 - Distribution of all dolerite drill log data collected at the Boddington
gold deposit. The drill hole traces have been removed for clarity. The outlined
areas represent the 2012 reserve pit shells at 150m, relative level (RL) above
sea level (scale in metres).
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FIG 5 - Barren Proterozoic dykes (green) that cross-cut mineralised Achaean lithological units (various colours) are modelled using
the volume points method that does not treat the dyke walls as separate surfaces. The upper surface is the base of oxidation.
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LESSONS LEARNT FROM THE TABULAR

MODELLING PROCESS
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FIG 8 - Modelled dolerite dyke (scale in metres).

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REFERENCES
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,QWHUQDWLRQDO6\PSRVLXP$EVWUDFW9ROXPHAustralian Institute of
Geoscientists BulletinHG69HDUQHFRPEH
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Australian Institute of Geoscientists Bulletin HGV0-%HUU\DQG0
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The Pursuit of Best Practice and Use of

Innovative Techniques Case Studies
in Geological Interpretation and
Modelling, Gold Fields Growth and
International Projects
R Gradim1, J Donaldson2, J Levett3, M Briggs4, M Crawford5,
M Dusci6 and A Trueman7
ABSTRACT
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1. Senior Geologist, Gold Fields, #706, 1155 Robson Street, Vancouver BC V6E1B5, Canada. Email: [email protected]
2. MAusIMM, Principal Resource Geologist, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: [email protected]
3. MAusIMM(CP), Senior Resource Geologist, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: [email protected]
4. Geology and Mining Manager: Greater Damang Study, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: [email protected]
5. MAusIMM, Senior Geologist, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: [email protected]
6. Vice President, Concept and Studies, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: [email protected]
7. MAusIMM(CP), Chief Resource Geologist, Gold Fields Exploration Inc, Suite 1650, 6400 South Fiddlers Green Circle, Greenwood Village Co 80111-4926, USA. Email: [email protected]
INTRODUCTION
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FIG 1 - Location of the Canahuire deposit of the Chucapaca project in the

Altiplano of southern Peru.
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FIG 2 - Geological map of the Canahuire Deposit. Note the gently folded sedimentary strata (blue and green colours) and a fault
network that controls the geometry of diatreme breccias (triangle pattern).
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FIG 3 - Example of an acoustic televiewer (ATV) log showing from left to right: (A) travel time; (B) amplitude image; (C) 3D log, which uses the travel time to create
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FIG 4 - Examples of geological features measured in an optical televiewer

(OTV) (A through D) and acoustic televiewer (ATV) (E through H) in different
drill holes (ie not a direct comparison of televiewer methods). In both cases,
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where the structural measurements are made: (A, E) bedding and fractures,
(B, F) breccia contact, (C) alteration contact, (D) veins, (G) siderite replacement
in limestone and (H) fault (dark blue). Length of core in each example is ca. 1.2 m.
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as disks and interpolated into 3D bedding form surfaces. These are compared back to the geological map and outcrops as validation.
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FIG 6 - Section 300 West (looking west) showing evolution of the lithostructural interpretation at Canahuire through time (same colour legend
as Figure 2). Panel(A) shows mismatch between the interpretation of
subsurface bedding geometry and that shown by the bedding form
surfaces interpolated from televiewer and surface data. The mismatch
led to the recognition of a fault, shown in (B). Panel(C) shows a sectional
interpretation generated as a slice of the 3D model, with no drawing
involved (compare with Figure 9a in Dusci, 2011a).
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FIG 8 - (A) Modelled fault network at Canahuire in transparent blue. Offsets

are shown by marker horizon in green, the base of the Hualhuani sandstones.
View to north-west. (B) 3D lithological model.
FIG 7 - Modelling of one of the clastic horizons by interval selection in

Leapfrog Mining (A) selection is done in 3D with a brush-like use of
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point for every selection; (C) the selection is modified by manual strings drawn
directly on the topography surface to reflect outcrop geometry and (D) FW
and HW planes are interpolated separately and the interpolated surface is
combined into a closed solid. View to north.
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FIG 12 - Geological map of the Damang area (Universal Transverse Mercator grid).
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FIG 11 - Location of Gold Fields operations; Damang and Tarkwa,

in south-western Ghana.
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FIG 13 - Geological interpretation plan at 800 mRL (AGL grid).

and 14). Little information exists to dene stratigraphic
contacts west of the Damang Fault, which are interpreted to
dip steeply to moderately west.
Two fold closures are interpreted. The rst is between
the north end of Damang and the south end of Huni where
there is thickening of the Tarkwa Phyllite and repetition of
stratigraphy as a result of faulting. The second and most
evident is at the north end of the Huni area.
Mac Intrusives are most extensive in the southern Juno
area where they reduce the footprint of the Banket formation,
the most favourable host rock, and can be greater than 100 m
wide. Volumes of Mac Intrusive decrease signicantly
in the northern Huni area where they occur on or near the
Tarkwa Phyllite contacts and are only 5 - 10 m wide. This
observation is correlated with the strength of hydrothermal
mineralisation throughout the deposit.
The north-south striking Damang Fault marks the western
boundary of mineralisation and to the east of this fault,
the deposit is cut by east-west, north-west-south-east and
north-east-south-west trending faults. Interpretation of these
faults is based on mapping, distribution of lithology and
mineralisation. A total of nine faults have been identied
(Figures 15 and 16).
The faults are interpreted to be post folding as they are not
folded themselves and to have been active both prior and
synchronous to mineralisation as mineralised veins cross-cut
238
stratigraphy offset by faulting. Only minor (<1 m) late offset

of mineralisation is observed across the faults.
Gold mineralisation at Damang is hosted in all rock
types and is dominated by hydrothermal quartz vein
mineralisation (~95 per cent of the metal); palaeoplacer
mineralisation comprises the remainder. Lateritic and
supergene mineralisation has mostly been mined out.
The Banket formation, in particular the Banket Footwall,
hosts ~50 per cent of the metal; it is a thick and competent
rock unit that behaved in a brittle fashion with respect to
the rock units surrounding it during mineralisation. In
addition, the presence of magnetite may have created a
reduced geochemical contrast that further focused gold
mineralisation. The Tarkwa Phyllite hosts the highest grade
mineralisation, a result of its reduced geochemical nature.
The lowest grade mineralisation is hosted in the Huni
Sandstone where tenor, thickness and frequency of veining
are generally lower.
Hydrothermal gold mineralisation is associated with four
main mineralisation styles, listed in order of dominance:
1. stacked arrays of shallow to at lying sigmoidal
quartz veins forming moderately south-west-dipping
mineralised trends (Figure 17)
2. more widely-spaced shear (fault ll) veins with at
lying dilational veins forming moderately east-dipping
mineralised trends
B
FIG 16 - View of north end of Damang Pit looking east showing the steeply
north-dipping Rogan Fault.
FIG 17 - Photo of north-west corner (top) of Damang Pit illustrating the southwest dipping mineralised domains; host rocks are Banket Sandstone and Mafic
Intrusive. Light shading represents the moderate grade outer alteration; the
darker shading, the higher grade core.
FIG 14 - Geological interpretation cross-sections for (A) Huni (26 920 mN),
(B) Damang (25 550 mN) and (C) Juno (24 760 mN) (AGL Grid). Refer to
Figure 13 for location of these sections.
FIG 15 - Isometric view looking west showing the interpreted faults

(only selected faults labelled).
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FIG 18 - Long-sections of the interpretation of deposit scale mineralisation trends. (A) Intersections of lithology and faults,
(B) horizontal accumulation (grade multiplied by thickness) of the inventory model within the Banket formation.
240
TABLE 1
Summary table of the domaining used in the estimation.
Area and lithology
Palaeoplacer
00
3000 HUNI
Hydrothermal primary mineralisation orientations in black, secondary (conjugate sets) vein orientations in blue
20
50
60
80
90
SE gentle dip
veins (20->135)
SW mod-gentle dip veins

(35->235)
E mod dip veins (shear

veins) (35->090)
S gentle dip veins

(short strike
extent) (10->180)
Leftovers shallow
veins (short strike
extent)
500 mafic intrusive
3520
400 Tarkwa phyllite
3420
300 Banket conglomerate
5300
200 Banket sandstone
3220
3220
100 Huni sandstone
3180 E&W
5000 DAMANG
EW02 fault
EW02 fault
5580 fault
500 mafic intrusive
5550
5460
400 Tarkwa phyllite
5450
5460
5300
5580
5350
5250
5290
100 Huni sandstone
3180 E&W
7000 JUNO
NW03 fault (data 50 mN) EW01 fault (data 50 mN)
500 Mafic intrusive
7560
400 Tarkwa phyllite
7460
5300
7350
7260
7250
7260
100 Huni sandstone
5580
5290
3180 E&W
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FIG 19 - Damang west-east cross-section (25550 mN) showing the

relationship of the geological interpretation to domaining.
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FIG 20 - West to east Leapfrog Mining screenshot showing a region

composite. Green points are the contact points, red points are mineralised
and blue points are waste. Values are distance from the contact point. The drill
hole trace is coloured by gold grade with warmer colours being a higher grade
above 0.3 g/t and grey being below 0.3 g/t.
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FIG 21 - (A) West-east cross-section 25 550 mN showing the mineralisation

wireframe for domain 5250 in thick yellow. The Damang Fault is in purple, the
pit as built in white and Mafic Intrusives in green. The drill data is coloured by
gold grade with warmer colours being higher grade and light blue and grey
being less than 0.3 g/t. (B) Isometric view of domain 5250 looking north-west.
For clarity, other mineralisation domains and geology are not shown.
Geostatistics
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FIG 22 - Geostatistics for domain 5250.
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FIG 23 - Experimental and interpreted variograms for domain 5250. Top left is strike, top right is dip,
bottom left is downhole and bottom right is downhole with 2 g/t top-cut to help the interpretation.
FIG 24 - Left: contact analysis between domain 5250 and waste (9999) showing clear statistical separation of the mineralisation-waste contact.
Right: contact analysis between domain 5250 and domain 5350 showing no significant change across the boundary.
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Wireframe-Free Geological Modelling

An Oxymoron or a Value Proposition?*
E J Cowan1,2, K J Spragg3 and M R Everitt4
ABSTRACT
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3. Research Engineer, ARANZ Geo Ltd, PO Box 3894, Christchurch 8140, New Zealand. Email: [email protected]
4. MAusIMM, Geology Manager, Grange Resources Ltd, PO Box 659, Burnie Tas 7320. Email: [email protected]
*
This paper was previously published in Proceedings Eighth International Mining Geology Conference 2011, pp 247-260 (The Australasian Institute of Mining and Metallurgy: Melbourne).
INTRODUCTION
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FIG 2 - Two-dimensional section through a three-dimensional object showing:

(A) prism volumes formed from triangular facets and the centroid of the object.
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FIG 4 - Geology of the North Pit, Savage River magnetite deposit.

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FIG 5 - Geological cross-section 9540 mN, Savage River magnetite deposit.

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TABLE 1
Explicit modelling workflow at Savage River magnetite mine. Time estimates
are based on a five-day, eight-hour/day working week for one person working
continuously, although different people may contribute in parallel to different
stages of the modelling.
Task
Days (hours)
Data collation and plotting 40 cross-sections
2 (16)
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10 (80)
Sectional digitising
5 (40)
Slicing and plotting 110 flitch plans
1 (8)
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5 (40)
Flitch digitising
5 (40)
Wireframe modelling and validation

Total
15 (120)
43 days (344 hours)
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FIG 6 - (A - E) Multiple implicit functions representing five different contact

relationships at the Savage River deposit. An idealised section viewing north
(similar to Figure 5). The positive areas of the functions are shown in grey;
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relating to geology. (F) Shows the final model taking overlapping relationships
into account. L = low-grade ore; M = medium-grade ore; H = high-grade
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FIG 7 - An input point must be passed through the functions in this order of
precedence to determine the category at any point (air, waste, or three of the
ore grade categories). Obtaining a block model repeats this process at grid
points to determine the proportion of each category within a block.
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TABLE 2
Implicit modelling workflow times for the North Pit Savage River magnetite
mine data set.
Task
Setting up project and import data
60 (1)
Defining the topography function f(Topo)
3 (0.05)
Defining the ECF function f(ECF)
60 (1)
Defining the waste-ore contact function

f(Waste-Ore)
20 (0.33)
Defining the low-grade to medium and highgrade contact function f(LOre-MHOre)
20 (0.33)
Defining the medium-grade to high-grade

contact function f(MOre-HOre)
20 (0.33)
Percentage proportional equivolumetric block

model (10 10 5 m)
660 (11)/165(2.75)
Subdivided block model (10 10 5 m and

5 5 2.5 m)
720 (12)/180 (3)
Total
A
Minutes (hours)
1563 minutes (26 hours) for single

core CPU 528 minutes (8.8 hours)
for a quad-core CPU
Notes: the last two tasks generating the block models require no human intervention and
represent computational time only. The computation tasks were performed on a single core
central processing unit (CPU), but an estimate for quad-core CPU is also shown. The savings in
computational time is proportional to the number of CPU cores used for computing the block
models. With a quad-core CPU, the block model computation can be brought down to one
quarter of the time, thus reducing the total time taken from 26 hours to 8.8 hours. ECF eastern
contact fault.
FIG 8 - Evaluation points weighting scheme for 3D integration to compute

the proportion of categories within (A) 10 10 5 m blocks and
(B) 5 5 2.5m blocks.
Comparison between block model results

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TABLE 3
Volumetric comparison of the block models for the entire study area. Volumes are expressed in million cubic metres. The high-grade ore in the
NP307 model is a combination of medium- and high-grade ore.
Category
NP307 block model volume

(% of total)
Waste
113.4 (63.4%)
Low-grade ore
Medium-grade ore
High-grade ore
6
Total volume ( 10 m )
Direct-to-block equivolumetric
Direct-to-block multivolumetric (10 10 5 m,
(10 10 5 m) block model volume (% of total) 5 5 2.5 m) block model volume (% of total)
136.6 (71.0%)
138.2 (71.8%)
12.2 (7.2%)
17.2 (8.9%)
16.2 (8.4%)
Not differentiated with high-grade ore
21.6 (11.2%)
20.6 (10.7%)
42.8 (25.4%)
16.9 (8.8%)
17.4 (9.0%)
168.4 of which 55.0 is ore
FIG 9 - Vertical section at 9540 mN (same section as Figure 5). NP307 block model from (A) explicit modelling and (B) subblocked model from implicit modelling.
Modelled categories shown are air (blue), waste (grey), low-grade ore (green), medium-grade ore (orange) and high-grade ore (red). In the NP307 model, the
medium- and high-grade ore (red) is not distinguished. The data is trimmed to 60 m anisotropic distance from the drill hole data. Scale bar is 300 m.
256
FIG 10 - Plan section at 0 mRL of the North Pit deposit (see Figure 4). NP307 block model from (A) explicit modelling and (B) subblocked model from implicit
modelling. Modelled categories shown are waste (grey), low-grade ore (green), medium-grade ore (orange) and high-grade ore (red). In the NP307 model, the
medium- and high-grade ore (red) is not distinguished. The data is trimmed to 60 m anisotropic distance from the drill hole data. Scale bar is 500 m.
TABLE 4
Volumetric comparison of the block models for a smaller sample volume. The box extents are minimum (6655, 9540, -88) and maximum (6840, 9720, 100).
Volumes are expressed in million cubic metres. The high-grade ore in the NP307 model is a combination of medium- and high-grade ore.
Category
NP307 block model volume

(% of total)
Direct-to-block equivolumetric
(10 10 5 m) block model volume (% of total)
Direct-to-block multivolumetric (10 10 5 m,

5 5 2.5 m) block model volume (% of total)
Waste
1.43 (22.5%)
1.60 (24.7%)
1.71 (26.2%)
Low-grade ore
0.38 (5.9%)
0.48 (7.4%)
0.41 (6.3%)
Medium-grade ore
High-grade ore
Total volume ( 106 m3)
Not differentiated with high-grade ore
1.64 (25.2%)
1.60 (24.5%)
4.56 (71.6%)
2.77 (42.6%)
2.80 (43.0%)
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REFERENCES
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Syracuse University Geology Contribution
259

Exploration and
Data Collection
The Resource
Database
Geological
Interpretation
and Modelling
Mineral Resource
Estimation,
Classification and
Reporting
Modifying Factors

Assessments
Ore Reserve
Estimation,
Classification and
Reporting
Monitoring the
Resources and
Reserves
Grade Control,
Production and
Reconciliation
Chapter 4 | Mineral Resource Estimation

I Glacken and A Trueman
263
Mineral Resource Estimation of the Brockman 4 Iron Ore Deposit in the Pilbara Region by Rio Tinto Iron Ore
B Sommerville, C Boyle,
N Brajkovich, J Phillips and
A-ALatscha
277
Multivariate Iron Ore Deposit Resource Estimation A Practitioners Guide to Selecting Methods
C De-Vitry, J Vann and H Arvidson
287
Tropicana Gold Mine, Western Australia A Case Study of Non-Linear Mineral Resource Estimation
M Kent, B Catto, M Doyle, D Gibbs,

M Matheson, R Singer, B Kendall
and J Vann
301
Estimation of Underground Mineral Resources at the Sunrise Dam Gold Mine A Case Study in Risk
Management
F Clark, J T Carswell, N A Schofield

and M Erickson
311
Mineral Sands Some Aspects of Evaluation, Resource Estimation and Reporting
G Jones, B Gibson and V OBrien
319
A Practitioners Guide to the Identification, Classification and Estimation of Inventory Coal and Coal Resources
K B Preston
329
A Practitioners Guide to Recoverable Resource Estimation Using Localised Uniform Conditioning
O Rondon and A Trueman
341
Resource Estimation in Folded Deposits A Review of Practice and Case Studies
I Glacken, P Blackney, D Gray and

N Fogden
351
Drilling of Mineral Resources Towards Better Investment Decisions
N A Schofield
363
HOME

I Glacken1 and A Trueman2
ABSTRACT
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1. FAusIMM(CP), Director and Principal Consultant, Optiro Pty Ltd, Level 4, 50 Colin Street, West Perth WA 6005. Email: [email protected]
2. MAusIMM(CP), Chief Resource Geologist, Gold Fields Exploration Inc, Suite 1650, 6400 South Fiddlers Green Circle, Greenwood Village Co 80111-4926, USA. Email: [email protected]
INTRODUCTION
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1. FAusIMM, Manager Resource Geology, Rio Tinto, Level 8, 152 - 158 St Georges Terrace, Perth WA 6000. Email: [email protected]
2. MAusIMM, Senior Resource Geologist, Rio Tinto, Level 8, 152 - 158 St Georges Terrace, Perth WA 6000. Email: [email protected]
3. Senior Resource Geologist, Rio Tinto, Level 8, 152 - 158 St Georges Terrace, Perth WA 6000. Email: [email protected]
4. MAusIMM, Advisor. Email: [email protected]
5. MAusIMM, Superintendent Geology Modelling Projects, Rio Tinto, Level 8, 152 - 158 St Georges Terrace, Perth WA 6000. Email: [email protected]
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FIG 1 - Location of the Brockman 4 deposit.

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Mineral Resource Estimation of the Brockman 4 Iron Ore Deposit in the Pilbara Region by Rio Tinto Iron Ore|B Sommerville et al
FIG 2 - Stratigraphy of the Hamersley Group showing details of the Joffre, Dales Gorge and Marra Mamba Iron Formations.
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FIG 3 - Rio Tinto Iron Ore banded iron formation derived deposits in the Pilbara region of Western Australia.
FIG 4 - Geological plan of the Brockman 4 deposit.

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FIG 5 - Cross-section of the Brockman 4 (BS4) deposit geology.

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Multivariate Iron Ore Deposit

Resource Estimation A Practitioners
Guide to Selecting Methods*
C De-Vitry1, J Vann2,3,4,5 and H Arvidson6
ABSTRACT
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1. MAusIMM, Principal Consultant, QG Consulting, PO Box 6237, Mitchelton Qld 4053. Email: [email protected]
3. Adjunct Professor, WH Bryan Mining and Geology Research Centre, The University of Queensland, St Lucia Qld 4072.
4. Adjunct Professor, Centre for Exploration Targeting, The University of Western Australia, Crawley WA 6009.
5. Adjunct Senior Lecturer, School of Civil Environmental and Mining Engineering, The University of Adelaide, Adelaide SA 5000.
6. MAusIMM, National Manager Mining Engineering and Geology, Golder Associates, Level 3, 1 Havelock Street, West Perth WA 6005. Email: [email protected]
* An earlier version of a this paper was published in Proceedings Iron Ore Conference 2007, pp 67-76 (The Australasian Institute of Mining and Metallurgy: Melbourne).
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BHP Billiton Iron Ore Resource classification reconciliation tolerance guidelines.
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Measured
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Three monthly reconciliation tolerance
12-monthly reconciliation tolerance
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FIG 1 - Discrete Gaussian model example for domain with high spatial variability of geology and geochemistry.
NON-LINEAR ESTIMATION AND CONDITIONAL

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299
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Tropicana Gold Mine, Western Australia

A Case Study of Non-Linear
Mineral Resource Estimation
M Kent1, B Catto2, M Doyle3, D Gibbs4, M Matheson5, R Singer6,
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1. MAusIMM, Chief Resource Geologist, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: [email protected]
2. MAusIMM, Manager Mine Geology Tropicana Gold Mine, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: [email protected]
3. Chief Geologist, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: [email protected]
4. MAusIMM, General Manager Tropicana Gold Mine, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: [email protected]
5. Superintendent: Mine Geology Tropicana Gold Mine, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: [email protected]
6. MAusIMM, Manager: Exploration and Projects Tropicana Gold Mine, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: [email protected]
7. Principal Geologist Advanced Projects, Independence Group NL, Suite 4, Level 5, South Shore Centre, 85 South Perth Esplanade, South Perth WA 6151. Email: [email protected]
INTRODUCTION
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HOME
Estimation of Underground
Mineral Resources at the
Sunrise Dam Gold Mine
A Case Study in Risk Management
F Clark1, J T Carswell2, N A Schofield3 and M Erickson4
ABSTRACT
The challenges of Resource estimation and grade control modelling at Sunrise Dam have been a matter of intense interest
for more than ten years to two of the authors of this paper. The scale and visible complexity of the mineralisation exhibited
in this deposit, which so excite the geological imagination, provides an uncommon experience in gold mining and Mineral
Resource estimation. Coarse visible gold and high coefcients of variation in excess of ten are common to the various styles of
mineralisation occurring within the deposit. This complex geology and extreme grade variation have presented signicant risks
to Resource estimation and grade control throughout the life of the open pit and underground mine.
Sunrise Dam has beneted from the developments in Resource estimation methodology during the 1980s and 1990s, which led
to the application of multiple indicator kriging and conditional simulation approaches to Resource estimation and grade control
modelling in mineralisation, characterised by complex geological controls and extreme grade variation. These approaches,
together with dedicated reverse circulation (RC) drilling and sampling for grade control, were applied in Sunrise Dam open pit
from the outset with considerable reward.
The success of these approaches in the open pit did not lead directly to their use in modelling and estimating the Resources
available to underground mining. Initially, the more traditional approach of sectional wireframing based on assumptions of
continuity of the mineralised geological structures were considered more appropriate because of their widespread use in other
Yilgarn gold mines. Later, more closely spaced drilling failed to conrm the continuity of the structures but indicated welldeveloped gold mineralisation between the structures in ground assumed to be barren or low grade.
Conditional simulation with stope optimisation has proved more benecial in the development of underground resource
models in the Cosmo and GQ mineralisation at the mine. This approach takes into account the greater uncertainties and
risks associated with extreme grade variation, broader drill hole spacing and higher cut-off grades that are encountered in
underground mining, particularly in this deposit. A more successful, lower cost, bulk mining approach that helps to mitigate
these risks has been the result.
1. MAusIMM, Mining Geology Manager Sunrise Dam, AngloGold Ashanti Australia Ltd, GPO Box F377, Perth WA 6001. Email: [email protected]
2. FAusIMM, Mining Geology Consultant and Contractor (previously: Mining Geology Manager Sunrise Dam), 15 Elphin Road, Launceston Tas 7250. Email: [email protected]
3. MAusIMM, Manager, FSS International Consultants (Australia) Pty Ltd, PO Box 493, Beecroft NSW 2119. Email: [email protected]
4. MAusIMM, Vice President Technical and Business Improvement, AngloGold Ashanti Australia Ltd, GPO Box F377, Perth WA 6001. Email: [email protected]
INTRODUCTION
The Sunrise Dam gold deposit is hosted in a complexly
deformed and altered package of shallowly north-west
dipping rocks within the Archaean Yilgarn Craton in
Western Australia. The mine is located at 2905S, 12225E,
approximately 270 km NNE of Kalgoorlie and 45 km SSE of
the township of Laverton (Figure 1).
Sunrise Dam is the largest gold deposit known in the
Laverton Tectonic Zone and is 100 per cent owned and
operated by AngloGold Ashanti Australia Ltd (AngloGold).
Open pit mining commenced in the northern part of the
deposit in 1995 by the Placer (Granny Smith) joint venture,
which produced 2.6 Moz of gold up until 2001. Open pit
mining of the larger southern part of the deposit commenced
in 1997 and to 31 December 2012, AngloGold Ashanti had
produced 5.5 Moz of gold from 48.6 Mt grading 4.1 g/t. To

date the deposit has yielded over 8 Moz of gold.
Remaining underground Resources stand at 23.2 Mt at
2.9 g/t for 2.17 Moz. Exploration potential is considered
signicant with the deposit remaining open along strike and
at depth.
HISTORY OF DISCOVERY AND OPEN PIT MINING AT

SUNRISE DAM
Discovery history
The initial exploration tenements over Sunrise Dam were
taken out by Delta Gold NL in 1983. The rst economic
311
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Open pit Resource estimation and grade control
FIG 1 - Location map and regional geological setting of the

Sunrise Dam deposit.
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FIG 3 - Schematic cross-section showing the base of the open pit and the extent and style of mineralisation seen in the Cosmo and GQ orebodies.
FIG 4 - Section of Cosmo showing early interpreted wireframe outlines of ore and the final stope based on simulation modelling.
DEVELOPMENT OF THE UNDERGROUND RESOURCE

MODEL OF THE GQ MINERALISATION
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REFERENCES
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6XQULVH&OHRJROGGHSRVLWLQGeology of Australian and Papua New
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HOME
Mineral Sands Some Aspects of

Evaluation, Resource Estimation
and Reporting
G Jones1, B Gibson2 and V OBrien3
ABSTRACT
Resource estimation techniques applied to mineral sands deposits borrow from aspects of standard estimation techniques
applied to commodities throughout the Mineral Resource sector. There are, however, unique characteristics to mineral sands
estimation. Heavy mineral (HM) grade is only one assay for consideration when preparing a Resource estimate for mineral
sands. Geological factors, mineral assemblage both valuable and non-valuable, mineral grain size and mineral chemistry are also
important considerations for deposit evaluation.
Non-grade characteristics of mineral sands deposits are equally important in project evaluation and must be considered
during modelling and reporting. These include induration, coarse material known as oversize and clay nes known as
slimes. Application of tonnage conversion factors or bulk density is important when preparing estimates of in-ground Mineral
Resources. There is no industry standard density factor conventionally used, with companies developing proprietary algorithms
or using engineering reference standards for bulk loose materials.
The reporting classication of mineral sands Resources follows the guidelines from Table 1 of the JORC Code (2012) with
focus placed not only on drill hole and sample support, but also on the support afforded by mineral assemblage and quality
information. This assemblage and mineral quality sampling is generally derived from composited samples with a different
level of support to drill hole assays. Additionally, the impact of induration and clay on the mineralisation needs to be taken into
account, thus requiring the mineral sands geologist to apply a holistic approach to Resource classication.
1. MAusIMM, Principal, GNJ Consulting Pty Ltd, PO Box 2372, Bunbury WA 6231. Email: [email protected]
2. Principal Development Geologist, Iluka Resources Ltd, 140 St Georges Terrace, Perth WA 6000. Email: [email protected]
3. MAusIMM, previously: Principal Development Geologist, Iluka Resources Ltd. Email: [email protected]
INTRODUCTION
Resource estimation for mineral sands follows standard
estimation principles as applied to commodities throughout
the Mineral Resource sector. The basic principles of
Resource estimation such as assessment of all the data,
sound geological interpretation, appropriate supporting
levels of quality assurance / quality control (QA/QC) data
and robust geological model construction are required to
reect all the inputs as with any other commodity. There
are, however, some characteristics of mineral sands that
require a slightly different approach in the evaluation,
Resource estimation and eventual reporting of the Mineral
Resource estimate.
The primary grade variables that a practitioner would
want to interpolate into a mineral sands block model
would be heavy mineral (HM), valuable HM percentages
(assemblage), mineral qualities (chemistry) and material
sizing characteristics such as the proportions of oversize
(eg >2 mm), slimes (eg <53 m) and sand (>53 m <2 mm) as
well as rock or induration.
Typically, mineral sands deposits fall into three main types
of orebodies; palaeo shorelines/marine placers, dunal/
aeolian deposits and alluvial deposits. There are rare instances
of hard rock ilmenite, zircon and rutile deposits; however,
there are no signicant commercially developed deposits of

this style and so they are not considered here for discussion.
The geological interpretation is focused on identifying the
geological setting, which could comprise arcuate palaeo
shorelines, larger amorphous masses such as aeolian dunal,
offshore marine sand accumulations or irregular lacustrine/
alluvial deposits. The geology that hosts mineralisation may
be normally stratied and/or tightly constrained within
geological boundaries/domains.
The majority of mineral sand estimators have opted to
keep things simple with respect to mineral sand estimation
techniques. There are many excellent papers by respected
practitioners on the dos and donts of block model
estimation and it is not the desire of the authors to reinvent
this here. Rather, this paper represents a strong inuence
from the approach adopted by Iluka Resources in Resource
estimation for mineral sands. CAE Studio (previously
Datamine StudioTM) is the mining software of choice used by
Iluka and hence, the discussion in this paper strongly reects
modelling terminology referred to by that package. However,
the mechanics of model construction and interpolation
techniques remains consistent across the Resource sector.
319
ASPECTS OF MINERAL SANDS RESOURCE

ESTIMATION
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Mineral Sands Some Aspects of Evaluation, Resource Estimation and Reporting|G Jones, B Gibson and V OBrien
TABLE 1
Common mineral sands, their physical properties and chemistry (source: Iluka Resources).
Mineral
Valuable
Magnetic susceptibility
Electrical conductivity
Specific gravity
Chemical formula
Ilmenite
Yes
High
High
4.5 - 5.0
Fe.TiO3
Rutile
Yes
Low
High
4.2 - 4.3
TiO2
Zircon
Yes
Low
Low
4.7
ZrSiO4
Leucoxene
Yes
Semi
High
3.5 - 4.1
Fe.TiO3.TiO2
Monazite
No
Semi
Low
4.9 - 5.3
(Ce,La,Th,Nd,Y)PO4
Staurolite
No
Semi
Low
3.6 - 3.8
Fe2Al9Si4O22.(OH)2
Kyanite
No
Low
Low
3.6 - 3.7
Al2SiO5
Garnet
No
Semi
Low
3.4 - 4.2
(Fe,Mn,Ca)3.Al2(SiO4)3
Quartz
No
Low
Low
2.7
SiO2
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TABLE 2
Description of logged hardness values (reverse circulation air core drilling).
Hardness
Description
Drilling unimpeded
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Drilling virtually unimpeded

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tcuttings generally contain a small amount of cemented material
INTERPRETATION OF MINERAL SANDS DEPOSITS
Drilling slows noticeably for short intervals

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tcoring for significant part of the sample
Progress very slow to absent

tcoring for >3-minute intervals
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325
TABLE 3
Tabulated in-ground values as a function of the assemblage and heavy mineral
grade. Deposit A has a low-value ilmenite-dominated deposit while Deposit B
has a high-value zircon-dominated assemblage.
Assemblage
Product
Product ($/t)
Ilmenite 1
120
80.0%
0.0%
Ilmenite 2
200
5.0%
30.0%
Leucoxene
300
2.0%
5.0%
Deposit A
Deposit B
Rutile
700
1.0%
5.0%
Zircon
1500
5.0%
50.0%
Others
7.0%
10.0%
Sum valuable heavy mineral
93.0%
90.0%
$/t heavy mineral
$194
$860
$/t valuable heavy mineral
$209
$956
% Heavy mineral in
ground
Deposit A
Deposit B
Material value ($/t)
Material value ($/t)
0.5%
0.97
4.30
1.0%
1.94
8.60
1.5%
2.91
12.90
2.0%
3.88
17.20
2.5%
4.85
21.50
3.0%
5.82
25.80
3.5%
6.79
30.10
4.0%
7.76
34.40
4.5%
8.73
38.70
5.0%
9.70
43.00
5.5%
10.67
47.30
6.0%
11.64
51.60
6.5%
12.61
55.90
7.0%
13.58
60.20
7.5%
14.55
64.50
8.0%
15.52
68.80
8.5%
16.49
73.10
9.0%
17.46
77.40
9.5%
18.43
81.70
10.0%
19.40
86.00
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TABLE 4
Summary of rounding and significant figures considered appropriate for the reporting of heavy mineral Resources.
Note: further rounding may be appropriate for Inferred Resources.
Deposit A
Volume
Tonnes
Heavy mineral
tonnes
Heavy mineral
grade
Clay
Oversize
Ilmenite
Rutile
Zircon
Unrounded
5 103 456
10 123 456
1 201 346
10.12
23.2
7.56
56.35
2.25
8.91
Rounded
5 100 000
10 000 000
1 200 000
10.1
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327
ISSUES IMPACTING MINERAL SANDS RESOURCE

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A Practitioners Guide to the

Identification, Classification
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1. FAusIMM(CP), Manager Resource Assessment, Rio Tinto Coal Australia Pty Limited, GPO Box 391, Brisbane Qld 4001. Email: [email protected]
INTRODUCTION
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and Measured categories.
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FIG 1 - Relationship between Inventory Coal, Coal Resources and Coal Reserves.
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A Practitioners Guide to the Identification, Classification and Estimation of Inventory Coal and Coal Resources|K B Preston
INVENTORY COAL AND COAL RESOURCE

CLASSIFICATION AND ESTIMATION
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FIG 2 - Definition of coal seam entities.
2. (A) stratified biogenic combustible sedimentary rock that has been derived mainly from
plant debris during a process of coalification.

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Step 3 establish physical limits and constraining

assumptions
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Step 4 classify all modelled coal according to

geological confidence
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TABLE 1
Inventory Coal and Coal Resource limiting factors.
Inventory Coal
Coal Resources
All Coal Resources
Open cut resources
Underground resources
Tenement boundaries (horizontal and vertical)
All those applicable to Inventory Coal
Maximum depth
Depth from surface (minimum and maximum)
Geological boundaries (no coal zones

subcrop, burn zones, washouts, intrusions, etc)
Areas with land access restrictions, eg National Parks,

strategic cropping lands, environmentally sensitive areas
Seam thickness (minimum mineable and

maximum extraction height) and seam grade
Areas within the tenement, already mined out
Major river courses and associated alluvial valley flats
Separation to next mined seam if any

(minimum)
Areas covered by urban development or major

infrastructure
Geotechnical factors (structural dislocation,

stress), gas and groundwater
Zones between adjacent mining operations

Availability of economically viable water, power and
transport infrastructure
Availability of any obvious current or future market
Ultimately limited by the economics of mining,
processing, transport and sale (reasonable prospects )
Key
Hard limits, not able to be ignored
Likely to be significant physical/legal constraints
Physical/commercial constraints; some with flexibility, some not
Ultimate limiting factor for Coal Resources
332
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apart. Trends in coal thickness and quality should not be
unreasonably extrapolated beyond the last line of Points of
Observation.
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([WUDSRODWHGUHIHUVWRWKHGLVWDQFHWKHHVWLPDWHLVH[WHQGHG
past the last line of Points of Observation into areas for
which no data are available.
The JORC Code is a Code for Public Reporting not a Code

that regulates the manner in which a Competent Person
estimates Mineral Resources or Ore Reserves ... -25&
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plans and determine the likely washplant yield and quality
of product coal. Indicated Inventory Coal and Indicated
Coal Resources may be estimated using data obtained
from Points of Observation normally less than 1 kilometre
DSDUWEXWWKHGLVWDQFHPD\EHH[WHQGHGLIWKHUHLVVXIFLHQW
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geostatistical analysis. Trends in coal thickness and quality
should not be extrapolated more than half the distance
between Points of Observation.
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a marketable product. Measured Inventory Coal and
Measured Coal Resources may be estimated using data
obtained from Points of Observation normally less than
PHWUHVDSDUWEXWWKHGLVWDQFHPD\EHH[WHQGHGLIWKHUH
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if supported by geostatistical analysis. Trends in coal
thickness and quality should not be extrapolated more than
half the distance between Points of Observation. &RDO
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the presence of coal to be unambiguously determined A
Point of Observation for coal quality evaluation is normally
obtained by testing samples obtained from surface or
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of the geological conditions to infer continuity of seams
between Points of Observation. They should also allow an
estimate of the range of coal thickness as well as coal quality
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mine planning purposes). Inferred Inventory Coal and
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Approach
Unacceptable Practice
Strict adherence to Coal Guidelines distances between

Points of Observation.
Little or no judgement applied and isolated spots of
Measured, Indicated or Inferred coal in evidence.
Comment
Still in use in some quarters.
Not acceptable industry practice.
Appropriate distances between Points of Observation

Current industry good practice if distances are diligently
estimated through geological observation and used as
assessed, coal quality is fully evaluated and sound
a starting point, then modified by application of
Competent Person judgments are applied.
judgement based on geological knowledge.
Current industry good practice if the link between

Appropriate distances between Points of Observation
determined using basic geostatistics (variography or geostatistics and classification is sound, coal quality is
DHSA), then modified by application of judgement
fully evaluated and sound Competent Person
based on geological knowledge.
judgments are applied.
Leading Practice
Full use of simulation to quantitatively assess levels of

confidence on all key resource parameters.
Sensible approach taken to matching confidence levels
to confidence categories (M, I & Inf).
Industry best practice, providing that all key resource

parameters are considered and the link between
geoststistics and classification is robust.
Not widely adopted in the coal industry.
FIG 3 - Spectrum of practice in classifying coal seams according to geological confidence.

334
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TABLE 2
Classification of Points of Observation.
Type
Points of Observation description
Cored and analysed intersection of seam with wireline log
Cored and analysed intersection of seam without wireline log
Cored intersection of seam without analysis wireline log may be

present, but not necessarily so
Non-cored intersection of seam with wireline log
Surveyed in pit observation and analysed coal sample
Pit wall observation of seam boundaries (eg SiroVision, I-Site)
Underground development drive observation of seam
Non-cored intersection of seam without wireline log
Seismic survey interpretation of seam presence
Value and use of Points of Observation

Types 1 - 2 required for
confirmation of quality
Types 1 - 7 reliable
for seam structure,
continuity and
thickness
Types 3 - 5 may
support quality
Types 8 - 9 supportive
of structure, continuity
and thickness
335
TABLE 3
Recommended coal quality parameters for Points of Observation test.
Coal type
Raw coal
Product raw
or washed
Property
Thermal coal
Metallurgical coal
Comment
Moisture (% ad)
Yes
Yes
Required to convert laboratory RD to in situ RD; also basis for reporting of other
quality values.
Ash (% ad)
Yes
Yes
Basic property of coal that should be known.

Required to estimate in situ RD, hence coal mass.
ARD (ar) or RD (ad)
Yes
Yes
Mass yield % or washability data
Yes if washed
Yes if washed
Moisture (% ad)
Yes
Yes
Basis for reporting of other quality values.
Required to estimate product mass, hence sales tonne/revenue/economics.
Ash (% ad)
Yes
Yes
Required to indicate basic market appeal of both products.
Volatile matter (% ad)
Yes
Yes
Required to indicate basic market appeal of both products.
Gross calorific value (kcals/kg ad)
Yes
Required to indicate basic market appeal of thermal product.
CSN
Yes
Minor element (S, P, As, Hg, Fe, etc)
Site dependent
Site dependent
Required to indicate basic market appeal of metallurgical product.

Only required if unavoidably market-sensitive.
Abbreviations: ad = air dry; ar = as received; ARD = apparent relative density; RD = relative density; CSN = crucible swelling number.
If air-dried moisture is missing, in situ density cannot be calculated. There is therefore an incentive to fill in missing moisture values with averages for raw coal for the given seam. This approach is considered
reasonable if fill-in values are well in the minority (say <20 per cent). If ash is missing it may be estimated from RD if a good ash (dry) versus RD (dry) relationship can be developed. This approach is
considered reasonable if estimated values are well in the minority (say <20 per cent). If RD is missing it may be estimated from: (1) ARD if a good RD versus ARD relationship can be developed; or (2) from
ash (dry) if a good ash (dry) versus RD (dry) relationship can be developed. This approach is considered reasonable if estimated values are well in the minority (say <20 per cent). If gross calorific value
(GCV) is missing, it may be estimated from ash if a good ash (dry) versus GCV (dry) relationship can be developed. This approach is considered reasonable if estimated values are well in the minority (say
<20percent).
TABLE 4
Example of distance between Points of Observation assessment.
Seam
Physical/structural character
Distances between Points

of Observation (m) high,
reasonable, low confidence
Coal quality
Distances between Points

of Observation (m) high,
reasonable, low confidence
Theta
Consistent thickness, minimal splitting,

laterally extensive, structurally benign, no
known intrusions.
450/900/2700
Raw ash consistent. Significant rank variation so

volatile matter and caking properties variable.
Washability predictable.
800/1600/3500
Iota
Minor splitting, thinning to the south, some

silling in the east.
380/760/2300
Raw ash variable and washability less predictable.

Significant rank variation, hence product caking
properties inconsistent.
700/1400/3000
Kappa
Lensoidal character, inconsistent thicknesses,

some washouts, silling in the east and south.
300/600/1800
Raw ash very variable and washability less predictable.

Silling has locally affected caking properties.
450/900/2300
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All reports of Mineral Resources must satisfy the
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and discussed by the Competent Person within the Public
Report using the criteria listed in Table 1 for guidance.
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The reasonable prospects disclosure must also include a

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Physical screening - consider seam thickness, depth, strip ratio, washery yield, coal type.
Cash Cost Screening - estimate average annual operating cost of extraction, processing, transport.
Full Cost Screening - as for cash cost screening but making some allowance for mine development
and ongoing capital costs.
Optimisation/margin ranking - as for full cost screening but also invoking price.
Search for lateral and vertical limits by evaluating $ margin.
Leading Practice
Full Economic Screening - undertake DCF analysis against a schedule, using full capital and
operating cost estimates and predictions of future pricing and forex.
FIG 4 - Spectrum of practice in applying the reasonable prospects test.

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REFERENCES
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&RDO &RDO 5HVRXUFHV DQG &RDO 5HVHUYHV WKH &RDO *XLGHOLQHV
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3UHVWRQ.(VWLPDWLQJWKH in situUHODWLYHGHQVLW\RIFRDOROG
IDYRXULWHV DQG QHZ GHYHORSPHQWV LQ Proceedings Bowen Basin
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%HHVWRQ &'520 *HRORJLFDO 6RFLHW\ RI $XVWUDOLD ,QF &RDO
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3UHVWRQ.%DQG6DQGHUV5+(VWLPDWLQJWKH in situUHODWLYH
GHQVLW\RIFRDOAustralian Coal Geology
7\UUHOO-DQG%XUURZV70LQHUDOUHVRXUFHFODVVLFDWLRQLWV
WLPHWRVKRRWWKHVSRWWHGGRJLQProceedings Sixth International
Mining Geology ConferenceSS7KH$XVWUDODVLDQ,QVWLWXWHRI
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A Practitioners Guide to Recoverable

Resource Estimation Using Localised
Uniform Conditioning
O Rondon1 and A Trueman2
ABSTRACT
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1. MAusIMM(CP), Principal Geostatistician, Optiro Pty Ltd, Level 4, 50 Colin Street, West Perth WA 6005. Email: [email protected]
2. MAusIMM(CP), Chief Resource Geologist, Gold Fields Exploration, Inc, 6400 South Fiddlers Green Circle, Greenwood Village Co 80111, USA. Email: [email protected]
3. The term recoverable Resources in the context of this paper is not intended as a category of Mineral Resources as defined by the JORC Code. It refers to tonnage-grade estimates at the scale of
a selective mining unit within a larger panel.
INTRODUCTION
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FIG 1 - Derivation of selective mining unit (SMU) grades by localised uniform
conditioning (LUC) assuming a continuous panel-specific tonnage T and metal Q
curves. After ranking the direct SMU estimates inside the panel, a proportion p
is obtained and used in the tonnage curve to compute the equivalent cut-off z.
This cut-off value is used in the metal curve to compute the associated amount
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FIG 2 - Comparison of point support experimental and modelled anamorphosis for Pd grades.
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TABLE 2
Comparison of the mean and variance of raw declustered Pd (p/m)
and corresponding values obtained after modelling the point support
anamorphosis.
Mean
Variance
Raw declustered data
1.038
0.4944
Modelled anamorphosis
1.030
0.4943
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FIG 3 - Linear model of coregionalisation fitted to the experimental variograms

and cross-variogram of Pd (top), Pd-Cu (middle) and Cu (bottom) respectively.
346
FIG 4 - Scatter plots between estimated panel and multivariate

uniform conditioning (MUC) average grades for Cu (top) and Pd (bottom).
Multivariate localised uniform conditioning

application
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TABLE 3
Correlation between estimated attributes using the localised multivariate
uniform conditioning (LMUC) approach.
Pd
Pt
Ag
Au
Cu
Ni
Pd
1.00
Pt
0.99
1.00
Ag
0.87
0.87
1.00
Au
0.97
0.98
0.87
1.00
Cu
0.96
0.96
0.88
0.96
1.00
Ni
0.79
0.79
0.79
0.76
0.83
1.00
0.70
0.68
0.74
0.66
0.77
0.93
1.00
FIG 5 - Histograms of selective mining unit (SMU) Pd grades using 15 (top)

and 81 (middle) cut-offs in multivariate uniform conditioning (MUC) to localise
the grades. Declustered histogram of input Pd grades is shown (bottom) for
comparison purposes.
347
FIG 6 - Example of the reproduction of the multivariate uniform conditioning (MUC) recovery functions using the selective mining unit (SMU)
grades derived from localised multivariate uniform conditioning (LMUC). Cut-offs correspond to the master attribute Pd.
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FIG 7 - Section showing Pd grades for (top) the direct selective mining unit and (bottom) the localised multivariate uniform conditioning estimates.
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REFERENCES
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FRQGLWLRQLQJ LQ WKH PXOWLYDULDWH FDVH DQ DSSOLFDWLRQ WR D
SRUSK\U\ FRSSHU JROG GHSRVLW LQ Proceedings WK APCOM
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PRGHO DSSOLFDWLRQ WR &KXTXLFDPDWD GHSRVLW LQ Proceedings
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8QLYHUVLW\RI&KLOH6DQWLDJR
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in Proceedings WK APCOM Symposium SS 7KH
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FRQGLWLRQLQJ KRZ JRRG DUH WKH ORFDO HVWLPDWHV" LQ Proceedings
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FIG 8 - Comparison of recoverable tonnage (top) and average grade (bottom)

of Pd between the multivariate uniform conditioning (MUC), localised
multivariate uniform conditioning (LMUC) and direct kriging estimates at the
selective mining unit (SMU) support.
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Resource Estimation in Folded Deposits

A Review of Practice and Case Studies
I Glacken1, P Blackney2, D Gray3 and N Fogden4
ABSTRACT
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1. FAusIMM(CP), Director and Principal Consultant, Optiro Pty Ltd, Level 4, 50 Colin Street, West Perth WA 6005. Email: [email protected]
2. MAusIMM, Principal Consultant, Optiro Pty Ltd, Level 4, 50 Colin Street, West Perth WA 6005. Email: [email protected]
3. MAusIMM, Group Mine and Resource Geologist, First Quantum Minerals Limited, Level 1, 24 Outram Street, West Perth WA 6005. Email: [email protected]
4. MAusIMM, Consultant Geologist, Optiro Pty Ltd, Level 4, 50 Colin Street, West Perth WA 6005. Email: [email protected]
INTRODUCTION
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FIG 3 - Sequential workflow for flattening of gently folded mineralisation through coordinate transformation. (A) Original structure and data,
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FIG 4 - Example of estimation through flattening in a calcrete-hosted uranium deposit.

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FIG 7 - Plan view slice showing rotating anisotropy across a multilayered

copper deposit; block sizes are 20 mN by 10mE.

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FIG 12 - West-east cross-sectional view along 6 479 730 mN showing the nickel grade estimation of the Lower Massive unit using unfolding.
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FIG 2 - Walker Lake deposit: sample data sets at 20 20 m, 10 20 m, 10 10 m and 5 5 m spacing.
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FIG 3 - Walker Lake deposit: cumulative histograms of sample data sets.
TABLE 1
Summary statistics of various sampling patterns, Walker Lake.
Patterns
20 m
20 m
10 m
20 m
10 m
10 m
5m
5m
1m
1m
Mean
2.389
2.564
2.542
2.64
2.66
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of variation
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0.530
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0.570
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2.520
2.820
3.190
3.160
Maximum
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35.460
35.460
75.90
95.000
FIG 6 - Global tonnage estimates using multiple indicator

kriging and sampling patterns in Figure 2.
FIG 7 - Global grade estimates using multiple indicator

kriging with sampling patterns in Figure 2.
FIG 4 - Global tonnage estimates using ordinary kriging
and sampling patterns in Figure 2.
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REFERENCES
'HXWVFK & 9 DQG -RXUQHO $ * GSLIB Geostatistical Software
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/DLUG$0+RZWRGHYHORSDSURMHFWLQMineral Resource and

Ore Reserve Estimation The AusIMM Guide to Good PracticeHG$
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Exploration and
Data Collection
The Resource
Database
Geological
Interpretation
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Mineral Resource
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Classification and
Reporting
Modifying Factors

Assessments
Ore Reserve
Estimation,
Classification and
Reporting
Monitoring the
Resources and
Reserves
Grade Control,
Production and
Reconciliation
Chapter 5 | Non-Resource Inputs to Estimation

of Ore Reserves The Modifying Factors
Overview Non-Resource Inputs to Estimation of Ore Reserves The Modifying Factors
M F Whitham
373
The Influence of Geotechnical and Groundwater Factors on Ore Reserve Estimation
T D Sullivan
385
Selecting a Mining Method for Metalliferous Orebodies
F Kaesehagen
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Transition from Open Pit to Underground Mining
I T Ross
409
Mining Dilution and Losses in Underground Mining
P L McCarthy
415
The Assessment and Management of Coal Recovery in Open Pit Mines
A Scott
419
Metallurgical Input to the Determination of Ore Reserves
P J Lewis
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Geometallurgical Guidelines for Miners, Geologists and Process Engineers Discovery to Design
D David
443
Assessment of Iron Ore Reserves Rio Tintos Pilbara Experience
G Danckert and L Fouch
451
Case Study Marketing of Industrial Minerals Iluka Resources
V E Hugo
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Mineral Resources and Ore Reserves of Industrial Minerals Markets and Other Modifying Factors
S Border and B Butt
467
Infrastructure for Mining Developments
F Blatt
473
The Influence of Revenue and Cost Factors on Ore Reserve Estimation
R P Watkins
479
Environmental Constraints on Resource-to-Reserve Conversion
M Ridd, P Eaglen and C Unger
487
Community Consultation The Ok Tedi Experience
M Werror
493
HOME
Overview Non-Resource Inputs

to Estimation of Ore Reserves
The Modifying Factors
M F Whitham1
ABSTRACT
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1. FAusIMM, Independent Mining Consultant, Sheerline Investments, 17 Palm Court, Meikleville Hill Qld 4703. Email: [email protected]
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TABLE 1
Key features of the main underground mining methods.
Method
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tOrebody must be amenable to

controlled caving and fragmentation
under its own weight
tHigh capital expenditure (capex)
tLong lead time to full production
tVery limited selectivity
tLarge-scale typical footprint
minimum 200 m 200 m 200 m
tLow initial capex

tShort lead time to
ore production
tModerate selectivity
tTop-down mining
tNo fill required
tModerately high operating

expenses (opex)
tRequires weak hanging wall
tLow tonnage per metre
of development
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tHigh production rate
Longwall
tNeeds a flat, laterally extensive

and soft tabular deposit
tHigh capex
tLong lead time to full production
tVery limited selectivity
tLarge-scale footprint
tLow initial capex

Room and
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pillar
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thick deposits
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Open
stoping
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tHigh recovery using
stabilised fill
Cut-andfill
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tShort lead time to
production
tGood selectivity
tHigh recovery
tHigher operating cost

tLow production rate
Transition from open pit to underground

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2. Adjunct Professor, University of New South Wales
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TABLE 1
Probability mapping scheme (Barniech et al, 1996).
Description of the condition or event
Occurrence is virtually certain.
Chance of
Order of
magnitude occurrence
probability
assigned
1
1
-1
Occurrences of the condition or event are observed in

the database.
10
The occurrence of the condition or event is not

observed, or is observed in one isolated instance,
in the available database; several potential failure
scenarios can be identified.
10-2
1 in 100
The occurrence of the condition or event is not observed

in the available database. It is difficult to think about
any plausible failure scenario; however, a single
scenario could be identified after considerable effort.
10-3
1 in 1000
The condition or event has not been observed and

no plausible scenario could be identified, even after
considerable effort.
10-4
1 in 10 000
1 in 10
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387
TABLE 2
Approximate estimates of the likelihood of major problems with mines and mine infrastructure (based on the authors observations).
Mine or infrastructure element Description
Order of magnitude probability (%)
Chance of occurrence
Open pit
Major pit wall failure and/or collapse and/or flattening of slopes
25 to 50
1 in 4 to 1 in 2
Underground
Major increase in dilution and/or stability problems
10 to 25
1 in 10 to 1 in 4
Waste dump
Major failure, either in-pit or ex-pit
10 to 20
1 in 10 to 1 in 5
Spoil dump
Ongoing failures led to redesign
5 to 10
1 in 10 to 1 in 20
Tailings dam
Major stability issue, leakage, pollution and/or failure
1 to 10
1 in 100 to 1 in 10
River diversion
Failure of diversion due to overtopping or failure of bunds led to pit

inundation
1 to 5
1 in 100 to 1 in 20
Water storage
Major problem or failure of major significant storage body
1 in 100
Coffer dam
Major stability issue and/or leakage
0.1
1 in 1000
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PROJECT DEVELOPMENT STAGES

Introduction
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FIG 1 - Approximate relationship between the JORC Code and project study levels (after Read and Stacey, 2009).
FIG 2 - Project study flow chart (after Read and Stacey, 2009).
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Levels of accuracy and project development

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TABLE 3
Approximate levels of accuracy required for project mining studies (after Ballard, 1983; Coleman and Westcott, 1983; White, 2001).
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Secondary or equivalent terms
Project level
Generally accepted accuracy

of cost estimates (%)
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order of accuracy required
in slope angles ()
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TABLE 4
Level of geotechnical data and analysis required for different project
stages and mining methods (after Haile, 2004).
Project
stage
Conceptual
Pre-Feasibility
Mining method and orebody geometry

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Bulk mining
method
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mining
method
N/A
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qualified
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justified
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Justified
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TABLE 5
Suggested target levels of data confidence by project stage (after Read and Stacey, 2009).
Project stage
Project level status
Geotechnical level status
Qualitative ranking
Conceptual
Pre-Feasibility
Feasibility
Design and construction
Operations
Level 1
Level 2
Level 3
Level 4
Level 5
Low
Low
Reasonable
High
Increasingly high
80 - 90%
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Key technical areas

Geology
Target levels of data confidence

>50%
50 - 70%
65 - 85%
Structural
>20%
40 - 50%
45 - 70%
60 - 75%
>75%
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30 - 50%
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60 - 75%
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40 - 65%
60 - 75%
70 - 80%
>80%
Geotechnical
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40 - 60%
50 - 75%
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395
TABLE 6
Pit geometry factors influencing investigations, design and risk.
General risk
setting
Depth
(m)
Mine life
(9 years)
Mine
shape
Mine access
High
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>10
Narrow
Single access on highwall
Medium to high
150 to 250
6 to 10
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50 to 150
2 to 5
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TABLE 1
Worlds ten largest copper mines.
Mine
Country
Copper production
t/a 000s
Mine type
Escondida
Chile
1100
Open pit
Grasberg
Indonesia
400 200
Open pit
Underground
Chile
443
Open pit
Collahuasi
Chile
340
Open pit
El Teniente
Chile
404
Underground
Los Pelambres
Chile
384
Open pit
Radomiro Tomic
Chile
375
Open pit
Cerro Verde
Peru
303
Open pit
Antamina
Peru
470
Open pit
Bingham Canyon
USA
160
Open pit
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Porgera underground production statistics.
Year
1990 - 1991
Actual mine production
Predicted mine production
Tonne
Grade g/t Au
Tonne
Grade g/t Au
615 000
62.1
412 000
76.2
1991 - 1992
754 000
60.6
550 000
62.5
1992 - 1993
1352 000
26.2
854 000
31.1
1993 - 1994
1517 000
18.0
1278 000
16.7
1994 - 1995
1586 000
16.2
1278 000
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REFERENCES
.DHVHKDJHQ ) ( DQG 1RUWKFRWH * * 3ODQQLQJ WKH 3RUJHUD
8QGHUJURXQG0LQHLQProceedings Innovative Mine Design for the
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TABLE 1
Palabora Ore Reserves (source: Rio Tinto Annual Report, 2005).
Year
Million tonnes
Grade (% Cu)
2004
201
0.68
2005
142
0.56
CRITICAL SUCCESS FACTORS
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REFERENCES
'XQQH . DQG 3DNDOQLV 5 & 'LOXWLRQ DVSHFWV RI D VXEOHYHO
UHWUHDW VWRSH DW 'HWRXU /DNH 0LQH LQ Proceedings Second North
American Rock Mechanics SymposiumHGV0$XEHUWLQ)+DVVDQL
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The Assessment and Management

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INTRODUCTION
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A Coal Reserve is the economically mineable part of a
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estimates include diluting materials and are adjusted for
losses that may occur when the coal is mined. Appropriate
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Loss and dilution mechanisms
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TABLE 1
Impact of some loss and dilution mechanisms.
Location
Roof
Floor
Edge
Mechanism
Impact
Geological structure
Faults or local changes in dip make it difficult to predict the location of the coal-waste interface and can prevent adequate access for mining
equipment.
Overburden blasting
Excess shock and gas effects from blasting can damage coal. The movement of overburden in cast blasting also erodes the coal surface.
Overburden equipment
Large-scale mining equipment cannot surgically define the interface between coal and waste.
Clean-up
Mobile equipment is usually employed to clean the roof of coal. In general, any loose material is pushed aside. Tracked dozers damage the
roof of coal.
Water
Water lying in a pit obscures vision, weakens materials and limits access.
Coal properties
Bright, friable coals are easily eroded by a blast or removed during clean-up. Dull, blocky coals are more resilient but may stick to roof material.
Geological structure
Irregular geometry from faults, rolls or intrusions disrupts mining operations and limits equipment access.
Coal breakage
Floor damage can result from excess blast energy or lack of control when ripping coal.
Mining equipment
The mining equipment and working method selected has a strong influence on the accuracy of mining.
Clean-up
Clean-up practices control the final coal recovery and dilution achieved at the seam floor.
Water
The presence of water weakens materials, obscures vision and limits access.
Floor properties
A soft floor creates trafficability problems and can lead to over-excavation, increasing dilution.
Highwall stability
Highwall failures (even mild ravelling) can cover coal at the highwall edge limiting access and recovery.
Cast blasting
Cast blasting erodes or displaces coal near the low wall.
Spoil placement
Spoil failures or ravelling can cover the low wall edge of coal, sterilising Reserves or causing dilution.
Clean-up
The size and type of equipment affects the recovery and dilution at the highwall and low wall edges.
Water
Water interferes with the ordered recovery of coal, reducing recovery and increasing dilution.
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FIG 3 - Displacement of the low wall edge of coal as identified by pit surveys.
This plan shows the original and post exposure location of the low wall edge of
coal. In this example, a horizontal displacement of 10 m has been generated by
the overburden blast.
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FIG 4 - This coal roof has been exposed and cleaned up ready for blasting. The
coal quality officer is standing on a small section of the actual geological roof.
Comparison with the broken material nearby indicates the extent of coal loss
caused during exposure and clean up.
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FIG 6 - A block of coal exposed and cleaned up ready for mining. The left-hand
(low wall) edge of the coal should be straight. This photograph indicates that
several metres of edge coal has been displaced and lost during overburden
blasting.
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FIG 7 - Loose material is being pushed up by dozers to expose the coal roof.
The seam has been disturbed and includes in situ dilution. It is not possible to
reliably survey the extent of this dilution even though it is visible because of its
erratic form in three dimensions. Most dilution in open pit mines is not readily
visible and therefore even more difficult to survey.
FIG 5 - The dotted lines trace the characteristic white marker bands within a coal seam. When exposed in the pit, the coal above the
first marker band is missing, indicating at least 300 mm of coal loss.
425
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FIG 8 - Potential locations for loss and dilution for a strip mining situation shown on a cross-section of one strip of the seam. The brown areas
represent potential dilution and the black areas represent potential coal loss. 1. Blast erosion wedge, 2. coal roof loss, 3. coal low wall edge loss,
4. coal floor loss, 5. highwall chop, loss, 6. highwall wedge, 7. roof dilution, 8. low wall edge dilution, 9. highwall dilution wedge, 10. floor dilution.
FIG 9 - Erosion of roof of coal by a cast blast. The coal seam should dip at its natural angle, but the coal falls
away to the left where a wedge of coal has been eroded by the overburden cast forward during blasting.
426
Mining accuracy
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the target horizon for stripping set at the actual waste/coal interface.
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FIG 12 - The target horizon has been set below the actual coal/waste interface,
resulting in an estimate of average loss and dilution thickness that is supported
by field observation.
FIG 10 - Model for the exposure of a seam roof. There is a characteristic bias
towards a greater thickness of coal loss than dilution when exposing a coal
roof. The sine wave is therefore displaced below its mean position. The average
dilution thickness is the average thickness represented by the light-coloured area
above the actual excavated surface, and the average loss thickness is the average
thickness represented by the dark area below the actual excavated surface.
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FIG 14 - Cross-section showing roof erosion and low wall loss and dilution
using the loss and dilution model provided by ACARP Project 8036. The green
zone represents coal loss and the orange represents dilution included with
the run-of-mine coal when the low wall edge is mined.
FIG 13 - Model for the exposure of a seam floor. In this case it is the dilution
(light colour below the actual excavated surface) that is larger than the coal
loss (dark colour above the actual excavated surface). The seam floor shown
has very little coal left on it.
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FIG 15 - Robbing coal from a low wall inevitably leaves some coal behind (loss)
and includes some dilution.
Edge loss and the effects of water

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FIG 16 - The presence of water weakens both the coal and non-coal strata so
that the interface between them at the roof and floor of the seam are more
difficult to physically separate. The soft, disturbed surfaces seen in this picture
are the result of wet working conditions that result in both increased loss of
coal and increased dilution.
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FIG 17 - Characterising coal breakage by lithotype. The brightness profile (eg dull bright DB, bright bright BB) can be mapped to identify the predominance of different
lithotypes, and their characteristics energy-breakage behaviour can be used to model their breakage during handling and washing processes (ACARP Project C6046).
429
FIG 18 - Process flow sheet simulators and partition-based separation models can be used to model preparation plant performance
based on the characteristics of the coals (ACARP Project C8036); eg density versus partition number (PN) relationship as shown.
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REFERENCES
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Metallurgical Input to the

Determination of Ore Reserves*
P J Lewis1
ABSTRACT
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1. FAusIMM(CP), Consulting Metallurgist, 90 Glover Street, Mosman NSW 2088. Email: [email protected]
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TABLE 1
Liaison between metallurgist and other disciplines during project
development.
Discipline
Provisional valuation of the mineralisation to determine what

might be realistically extracted
Selection of drill type and core sizes for metallurgical samples
Establishment of core logging criteria for metallurgical purposes
Establishment of the drill core assays required
Geological
METALLURGICAL/GEOLOGICAL LIAISON
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Metallurgical review of data from drill logs

Selection of samples for mineralogical examination
Delineation of all the different types or zones of mineralisation
Provision of metallurgical data for cut-off grade calculations
Retention of suitable samples for metallurgical test work
Selection of representative samples for metallurgical test work
Establishment of the amount of mining dilution to be included in
metallurgical composite samples
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engineering
Definition of mineable areas to allow selection of only mineable

samples for test work
Provision of metallurgical performance and operating cost data
for block modelling
Provision of representative tailings samples for backfill evaluation
Generation of the mill production schedule
Cost estimation to assist in the selection of the optimum
processing method and flow sheet
Cost estimation to assist in the optimisation of process variables

Design and cost such as grind size
engineering
Establishment of criteria for process plant design and capital cost
estimation
Establishment of process plant operating costs
Tailings
disposal
Provision of representative tailings samples for test work by

specialist consultants leading to tailings dam design
Provision of representative samples of tailings for environmental
tests (eg acid-generating potential)
Environmental
Provision of expected, detailed analyses of plant feed, tailings

solids and tailings solution for environmental studies
Identification of the environmental requirements associated with
the selected processing method
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production for marketing studies
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prediction of plant performance
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TABLE 2
Net realisable value of metal in ore after allowing for recovery and smelter
payments.
Metal
Metal
price
(US$/lb)
Copper
3.70
Plant
Concentrate
recovery
grade
(%)
(%)
90
25
%
payment
by
smeltera
Net realisable
value of
metal in oreb
(%)
90
81
Lead
1.05
85
55
76
65
Zinc
0.97
85
52
65
55
a. Defined as the percentage of the gross value of the metal contained in concentrate at the grade
shown that is actually paid by the smelter after all deductions, but excluding realisation costs.
b. Plant recovery per cent payment by smelter.
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REFERENCES
/HZLV3-DQG6WUHHWV&*$QDQDO\VLVRIEDVHPHWDOVPHOWHU
WHUPVLQProceedings 11th Commonwealth Mining and Metallurgical
CongressSS7KH,QVWLWXWLRQRI0LQLQJDQG0HWDOOXUJ\
/LVWHU%$VHFRQGLQWHUODERUDWRU\VXUYH\RIWKHDFFXUDF\RI
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/LVWHU%DQG*DOODJKHU0-$QLQWHUODERUDWRU\VXUYH\RIWKH
DFFXUDF\RIRUHDQDO\VLVTransactions of the Institute of Mining and
MetallurgyApplied Earth Science%%.
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Geometallurgical Guidelines for

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D David1
ABSTRACT
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INTRODUCTION
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WHAT ARE USEFUL GEOMETALLURGICAL

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Assessment of Iron Ore Reserves

Rio Tintos Pilbara Experience
G Danckert1 and L Fouch2
ABSTRACT
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1. MAusIMM, General Manager Strategy, Iron Ore, Rio Tinto, 152 - 158 St Georges Terrace, Perth WA 6000. Email: [email protected]
2. Manager Resource Studies and Technology (CP Ore Reserves), Rio Tinto, 152 - 158 St Georges Terrace, Perth WA 6000. Email: [email protected]
INTRODUCTION
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(million tonnes). Resources and Reserves in dry tonnes reported on a 100 per cent
basis and Resources exclusive of Reserves. Details on the Mineral Resource and
Ore Reserve from 2001 to 2012 are found in the the Rio Tinto annual report.
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FIG 3 - Global iron ore and pig iron production (1990 - 2010).
TABLE 1
Pilbara Mineral Resources and Ore Reserves support reliable product delivery.
Rio Tinto Pilbara iron
ore products
Pilbara blend product
Mineral Resource
Ore Reserve
Product grade
Mt
% Fe
Mt
% Fe
% Fe (lump)
% Fe (fines)
12 281
61.3
2278
62.2
62.5
61.5
Measured
918
60.4
Proved
1439
62.5
Indicated
2890
61.8
Probable
840
61.8
Inferred
8473
61.3
Yandicoogina product
3375
57.1
324
58.6
Measured
820
57.4
Proved
324
58.6
Indicated
210
57.7
Probable
0.4
58.9
Inferred
2345
57.0
Robe River product
2785
57.1
274
57.2
Measured
147
57.5
Proved
175
57.3
Indicated
1483
58.2
Probable
99
57.0
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1155
55.6
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REFERENCES
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INTRODUCTION OVERVIEW OF MINERAL SANDS

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TABLE 1
Comparison between typical unaltered and altered ilmenite products
from Western Australian mineral sands deposits.
Analyte
Unaltered ilmenite
Altered ilmenite
% TiO2
52 - 54
57 - 60
% FeO
19 - 25
4 - 15
%Fe2O3
16 - 22
33 - 37
% SiO2
0.5 - 0.9
0.9 - 1.3
% Al2O3
0.4 - 0.8
0.9 - 1.5
% MnO
1.4 - 1.6
1.2 - 1.4
% MgO
0.1 - 0.2
0.1 - 0.2
% V2O5
0.14 - 0.20
0.14 - 0.20
% CaO
0.01 - 0.05
0.01 - 0.05
% Cr2O3
0.05 - 0.07
0.05 - 0.08
% Nb2O5
0.13 - 0.16
0.13 - 0.16
% ZrO2
0.1 - 0.2
0.2 - 0.3
U (ppm)
<20
<20
Th (ppm)
100 - 150
150 - 300
MINERAL SAND MARKETS

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TABLE 2
Ilukas Ore Reserve breakdown by country, region and JORC category at 31 December 2012 (Iluka, 2013b).
Summary of Ore Reservesa,b,c for Iluka
Country
Heavy minerals assemblaged
Region
Ore Resource
category
Ore tonnes
(M)
In situ heavy
minerals (Mt)
Heavy minerals
grade (%)
Ilmenite
grade (%)
Zircon grade
(%)
Rutile grade
(%)
Eucla Basin
Proved
130.2
5.87
4.5
28
Probable
3.4
0.07
2.1
20
51
Total Eucla Basin

Murray Basin
Australia
Total Murray Basin
4.4
28
51
2.25
25.6
53
11
18
Probable
11.6
1.80
15.5
46
14
19
20.4
4.05
19.9
50
12
18
Proved
9.5
0.87
9.1
60
14
Probable
306.4
16.59
5.4
59
10
Atlantic Seaboard
USA
Total Atlantic Seaboard
Total Probable
5.94
8.8
Perth Basin
Total Perth Basin
133.5
Proved
315.9
17.46
5.5
59
10
Proved
20.3
0.90
4.4
69
15
Probable
14.4
0.61
4.2
57
18
335.8
19.08
5.7
58
11
Notes:
a. Competent Persons Ore Reserves: Eucla Basin, Perth Basin and Murray Basin: C Lee (MAusIMM); Atlantic Seaboard: C Stilson (SME).
b. Ore Reserves are a subset of Mineral Resources.
c. Rounding may generate differences in last decimal place.
d. Mineral assemblage is reported as a percentage of in situ heavy minerals content.
e. Ilmenite currently has had no value ascribed in the reserve optimisation process for the Murray Basin. Metallurgical test work and marketing studies are presently underway; the outcomes of which may
see a revision of the Ore Reserves.
f. Rutile component in Perth Basin South West operations is sold as a leucoxenep product.
g. Rutile is included in ilmenite for the Atlantic Seaboard region.
Numbers may not add due to rounding.
Ore Reserves and Mineral Resources are estimated using all available geological and relevant drill hole and assay data, including mineralogical sampling and test work on mineral recoveries and final product
qualities. Reserve estimates are determined by the consideration of all of the modifying factors in accordance with the JORC Code 2004, and for example, may include but are not limited to, product prices, mining
costs, metallurgical recoveries, environmental consideration, access and approvals. These factors may vary significantly between deposits. Resource estimates are determined by consideration of geology, heavy
minerals cut-off grades, mineralisation thickness versus overburden ratios and consideration of the potential mining and extraction methodology. These factors may vary significantly between deposits.
The statement of Mineral Resources and Ore Reserves presented in this report has been produced in accordance with the Australasian Code for Reporting Mineral Resources and Ore Reserves, December 2004
(the JORC Code).
The information in this report relating to Mineral Resources and Ore Reserves is based on information compiled by Competent Persons (as defined in the JORC Code). Each of the Competent Persons for deposits
located outside Australia is a member of a Recognised Overseas Professional Organisations (ROPO) as listed by the ASX. Each of the Competent Persons had, at the time of reporting, sufficient experience
relevant to the style of mineralisation and type of deposit under consideration and to the activity they were undertaking to qualify as a Competent Person as defined by the JORC Code. At the reporting date,
each Competent Person listed in this report was a full-time employee of Iluka Resource Limited. Each Competent Person consents to the inclusion in this report of the matters based on their information in
the form and context in which it appears.
All of the Mineral Resource and Ore Reserve figures reported represent estimates at 31 December 2012. All tonnes and grade information has been rounded, hence small differences may be present in the
totals. All of the Mineral Resource information is inclusive of Ore Reserves (ie Mineral Resources are not additional to Ore Reserves).
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TABLE 3
Ilukas Mineral Resource breakdown by country, region and JORC category at 31 December 2012 (Iluka, 2013b).
Summary of Mineral Resourcesa,b,c for Iluka
Country
Heavy minerals assemblaged
Region
Mineral
Resource
category
Material
(Mt)
In situ heavy
minerals (Mt)
Heavy
minerals
grade (%)
Ilmenite
grade (%)
Zircon grade
(%)
Rutile grade
(%)
Eucla Basin
Measured
210.6
8.38
4.0
34
43
Indicated
80.8
1.47
1.8
13
60
Inferred
151.3
10.25
6.8
66
16
442.8
20.10
4.5
49
30
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Murray Basin
Australia
Measured
16.1
3.23
20.1
52
11
16
Indicated
127.2
24.23
19.1
56
11
13
Inferred
78.7
9.23
11.7
48
10
15
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Perth Basin
221.9
36.69
16.5
54
11
14
Measured
518.9
29.33
5.7
58
10
Indicated
352.4
18.82
5.3
57
10
Inferred
257.4
12.19
4.7
57
1,128.6
60.34
5.3
57
10
Measured
24.7
1.01
4.1
69
15
Indicated
57.1
3.04
5.3
64
12
Total Perth Basine

Atlantic Seaboard
USA
35.9
1.52
4.2
65
Total Atlantic Seaboardf
Inferred
117.7
5.57
4.7
65
11
Total Indicated
617.5
47.56
7.7
56
12
Total Inferred
523.3
33.19
6.3
58
11
Notes:
a. Competent Persons Mineral Resources: Eucla Basin and Perth Basin (Mid West): B Gibson (MAIG); Perth Basin (South West): R Stockwell (MAIG); Murray Basin: V OBrien (MAusIMM);
Atlantic Seaboard: A Karst (SME).
b. Mineral Resources are inclusive of Ore Reserves.
c. Rounding may generate differences in last decimal place.
d. Mineral assemblage is reported as a percentage of in situ heavy minerals content.
e. Rutile component in Perth Basin South West operations is sold as a leucoxene product.
f. Rutile is included in ilmenite for the Atlantic Seaboard region.
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REFERENCES
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ABSTRACT
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2. FAusIMM(CP), Self employed, Unit 84, 2 Ulmarra Place, East Lindfield NSW 2070. Email: [email protected]
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TABLE 1
Market segments for two hypothetical deposits.
Market segment
Net ex-mine
price ranking
Market size
ranking
Treatment
Market location
Garnet deposit, SE Queensland

Abrasive
-1 mm in bulker bags
Local (south-east Queensland)
Abrasive
-1 mm in bulker bags
New South Wales and

North Queensland
Water filtration
Various sizes, usually sold in bulk
Abrasive
Australia
Export
Clay-rich sand deposit, Sydney basin

Mortar sand, sold to builders suppliers
Blending to achieve consistent sizing, mixed bulk

and bagged sales
Local and Sydney region
Construction companies for concrete
Washed, sized to strict specifications (need

accredited testing), sold in bulk
Local and Sydney region
Local councils (for road repairs and concreting)
Washed, sized, various specifications, sold in bulk
Local district only
Fine sand, local nurseries and builders suppliers
Washed, sized, mixed bulk and bagged
Bulk local only, bagged Sydney region
Fill
None, sold in bulk only
Local only
Note: net price and market size have been given a ranking, with 1 being the greater value and/or largest volume. Exact values of each would depend on the exact location, specific deposit characteristics,
etc. This table is illustrative as other market segments could be considered in both cases.
468
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REFERENCES
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Australian Mineral Economics HGV30D[ZHOODQG3*XMSS
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Australian Mineral Economics HGV30D[ZHOODQG3*XMSS
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Environmental Constraints on
Resource-to-Reserve Conversion
M Ridd1, P Eaglen2 and C Unger3
ABSTRACT
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1. MAusIMM, Executive Manager Environment, Ok Tedi Mining Limited, PO Box 1, Tabubil Western Province, Papua New Guinea. Email: [email protected]
2. General Manager, Health, Safety, Environment and Security, Rio Tinto Coal Mozambique, No 1123, Third Floor, 24 de Julho Avenue, Maputo, Mozambique. Email: [email protected]
3. MAusIMM(CP), Environmental Consultant and Researcher, Centre for Mined Land Rehabilitation, The University of Queensland, St Lucia Qld 4072. Email: [email protected]
INTRODUCTION
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2. The ARD issue also led to the implementation of the Mine Waste Tailings Project in 2008,
which comprises a flotation plant for removing 80 per cent of the pyrite from the tailings.
This has mitigated the risk of significant ARD developing in the river system and at Bige
in the Lower Ok Tedi Region.
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FIG 1 - Map of community mine continuation agreements trust regions in Western Province.
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TABLE 1
Chronology of events.
Date
Activity
Purpose
June/July 2009
Village meeting 1
Inform CMCA communities that mine is scheduled to close in 2013 as per current mine plan but there is an
opportunity to extend the mine life for another seven years
August/September 2009
Collection of nomination forms
To collect all MLE village representative nomination forms from all the villages under the CMCA
September 2009
Stakeholder briefing in Port Moresby
To brief government and other stakeholders about the possibility of extending the mine life
October 2009
Regional meeting
To elect regional representatives or delegates and women representatives
November/December 2009 Mine, mill and Bige visit
Familiarisation visit by village representatives and women representatives
January 2010
Mine, mill and Bige visit
Familiarisation visit by village representatives and women representatives
February 2010
Delegates meeting 1
First meeting/introduction and presentations of MF studies, ER, PNGSDP and OTFRDP presentations
May 2010
Village meeting 2
Inform villages of everything discussed in DM 1
July 2010
Delegates meeting 2
OTML presented OTML proposal package and further MF and ER presentations
August/September 2010
Village meeting 3
Inform villages of all messages discussed in DM 2
October 2010
Stakeholders meeting
Discussed draft agreement
October/November 2010
Regional meeting 2
Inform village representatives of DM 2 meeting and presented draft agreement
March/April 2011
Delegates meeting 3
Update on MF and ER presentations, independent scientists preliminary report presented
June 2011
Stakeholders meeting
Discuss compensation package, MLE agreement format and agenda for DM 4
June 2011
Delegates meeting 4
Present final MF study and ER and discuss compensation package
May 2012
Regional meeting 3
Information update and offer proposal by OTML, PNGSDP, the GoPNG
November/December 2012 Regional meeting 4
Reach agreement and signing of the nine CMCA extension agreements
April 2013
Inform 156 villages of the outcome of the MLE consultation process
Village meeting 4
CMCA: community mine continuation agreements; MLE: mine life extension; MF: mine feasibility; ER: environment report; PNGSDP: PNG Sustainable Development Program Company Ltd; OTFRDP: Ok Tedi
Fly River Development Program; DM: delegates meeting; OTML: Ok Tedi Mining Limited; GoPNG: Government of Papua New Guinea.
496
be a successful model based on a three-level engagement

structure (Figure 2):
1. delegates meeting
2. regional meeting (nine regions)
3. village meeting (156 villages).
Underpinning principles
The OTMLs charter was used to guide the MLE consultation
process, shown below.
We value:
integrity
open and transparent communications
participation and involvement
win-win relationships
operating excellence with continuous improvement.
We are successful when:
all participants value our partnership

our customers seek our product
every employee takes pride in combined achievements
we are making positive social and economic contributions to
PNG, the Western Province and the North Fly.
In addition to the OTML charter the stakeholders also
agreed to use the following principles during the MLE
consultation process:
integrity
transparency
equity
fairness
participation
respect
responsiveness
adequacy of information
timeliness.
And to reinforce OTMLs commitment to the process,
all OTML ofcers involved also signed a statement of
commitment.
FIG 2 - Mine life extension communication/consultation process framework.

This three-level engagement structure allowed information
to be disseminated to all 156 villages after each regional and
delegates meeting, as well as feedback from the village level
to be channelled up to the regional and delegates meetings.
The village meetings normally take up to ve weeks to
complete and involve the use of aircraft, helicopters, ships,
vehicles and dinghies to reach remote villages. Depending on
the time of year, the weather can create delays to the teams
reaching a village to conduct the meeting.
The goal of the process was to seek the CMCA communities
consent for mine life extension based on the information
provided on the present and future environmental impacts
and the benets and opportunities that the extension of the
mine presents.
The process involved the same key stakeholders engaged
in the 2006/2007 CMCA review; ie the CMCA communities,
GoPNG, the FRPG, PNGSDP and OTML. The 2006/2007
CMCA review process itself is a model that encourages
conict resolution and development facilitation in PNG
because of its transparency and thoroughness. The process
was facilitated by an external organiser and two external
observers whose role was to ensure that the process adhered
to the agreed principles described below. A key feature of the
process was that it promoted transparency and strengthened
the relationships and trust amongst all the stakeholders.
Ok Tedi Mining Limited statement of commitment

OTML is committed to honest, open and transparent
communication with communities and is prepared to put that
commitment in writing and be judged by its performance
against it.
The following statement of commitment has been agreed to:
We, the undersigned employees of OTML make this
personal commitment:
we will at all times conduct ourselves in accordance with

the values of the OTML charter and with the principles
guiding OTMLs discussions with communities
we will adhere to the policies and procedures within this
manual and will help to improve it through providing
feedback to OTML management
we will behave with integrity at all times
we will work hard in implementing the discussion and
review process and will make every effort to achieve our goal
we recognise the rights of communities to be given the
information that they need to understand the effects of the
mine on their environment and lifestyle and to receive just
and appropriate compensation for negative impacts
we will communicate with communities and their
representatives in an open and positive manner
we will seek to resolve any conicts that arise in a
constructive manner that protects and improves the
companys relationships with communities.
497
Mine life extension communication and consultation

process framework
External facilitator
The MLE community engagement process began in mid2009 with a series of community consultation meetings that
involved four delegates meetings, four rounds of regional
meetings and four rounds of village meetings (see Table 1).
External facilitators were engaged as independent agents

in the process to facilitate all three levels of meetings.
The involvement of an external facilitator in the meetings
promoted condence and integrity in the process, allowing
the objective of the MLE process to be achieved.
Figure 3 illustrates the MLE consultation process with the

communities from the start through to the signing of the
agreements called the CMCA Extension Agreements.
Tanorama Ltd, a PNG-based consultancy company who cofacilitated the 2006/2007 CMCA Review, was re-engaged to
facilitate the MLE consultation process.
External observers
The role of the external observers is to observe and report
on the conduct of the meetings and the overall consultation
process to ensure it is conducted in accordance with the
principles and agreed practice. Two prominent Papua New
Guineans, Dr Beno Boeha and Sir Paul Songo, were engaged
to be observers in all the delegates, regional and village
meetings.
Delegates meeting
A fair consultation process
A working group model was used as an effective and

appropriate standard for conducting the MLE consultation
process. The key stakeholders were represented in the group
and discussions were arranged through an external facilitator
to help achieve the desired outcome. This is a high-level
forum to discuss common issues across all the nine CMCA
regions but it was not the forum where agreement was
reached. There were four delegates meetings conducted.
To ensure the consent and consultation process is conducted

in accordance with the agreed principles, all three levels of
meetings delegates, regional and village meetings were
administered by an external facilitator and observed by two
external observers. Reports were produced after each meeting
highlighting the messages communicated and any issues or
concerns raised by the communities.
The structure of the delegates meeting is illustrated in

Figure 4, showing all the stakeholders including OTML
having an equal input in all meetings. Members of the
delegates meeting comprised four representatives and three
women leaders from each of the nine CMCA regions, plus
representatives from the GoPNG, FRPG, PNGSDP and
OTML.
FIG 3 - The delegates meeting set-up.
FIG 4 - Three levels of meetings village, regional and delegates meetings.

498
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REFERENCES
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Exploration and
Data Collection
The Resource
Database
Geological
Interpretation
and Modelling
Mineral Resource
Estimation,
Classification and
Reporting
Modifying Factors
Ore Reserve
Estimation,
Classification and
Reporting
Assessments
Monitoring the
Resources and
Reserves
Grade Control,
Production and
Reconciliation
Chapter 6 | Ore Reserve Estimation

G Dunstan
503
Feasibility Studies Scope and Accuracy
M E White and I Harrington
507
Reflections on Front-End Loading in Mine Project Development
J H Shillabeer
519
Whittle Optimisation The Money Mining Methodology and Its Impact on Ore Reserves
G Whittle
525
Maximising the Value of Open Pit Gold Reserves Where Are We Getting It Right?
S Butel and A Ferrier
529
Block Caving Software Practical Applications
J-A Dudley
535
Reserve Estimation for Block Cave Mines Using PCBC
T Diering
547
Geotechnical Modifying Factors to Be Considered When Determining the Status of Longwall Reserves
R W Seedsman
557
HOME

G Dunstan1
ABSTRACT
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REFERENCES
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1. Director, DevMin Consultants, Level 1, 130 Hay Street, Subiaco WA 6008. Email: [email protected]
2. Principal, Flagstaff Consulting, Level 3, 87 Wickham Terrace, Spring Hill Qld 4000. Email: [email protected]
INTRODUCTION
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type
Typical level
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TABLE 2
Scope elements of Feasibility Studies.
Category
Matters inclusive
Owner parameters
Business definition
Project goals
Market conditions
Project description
Tangible and Intangible features that constitute the project

Implementation plan
Operating plan
Execution plan
Rehabilitation plan/disposal plan

Capital/operating costs
Risk evaluation
Financing plan
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TABLE 3
Tailings disposal example of the definition levels required for increasing
levels of Feasibility Study.
Systems
definition
Process and technique used for the environmentally safe and

efficient method of impounding waste liquids and solids
At Conceptual
Feasibility
Study
Method and equipment selection is based on knowledgeable

person and industry experience in similar projects. Preliminary
calculations and preliminary risk/opportunity assessment.
At Preliminary
Feasibility
Study
Alternate workable methods evaluated based on preliminary

engineering and completed preliminary test work to establish
optimised method. Data required for permitting process defined
subject to implementation requirements.
At Definitive
Feasibility
Study
Detailed definition of composition and characteristics of waste

product is completed. Supplement permitting process with any
changes resulting from further detailed assessment.
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development stage.
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FIG 4 - Potential influences of Feasibility Studies as a value improvement process.

511
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APPENDIX 2
Comparison of estimates for economic feasibility (after Thompson, 1993)
Item
Type I
Type II
Type III
Type IV
Plant capacity
Assumed
Preliminary
Optimised
Finalised
Geographic location
General
General
Fixed
Site-specific
Site
Maps and surveys
If available
If available
Required
Detailed
Foundation tests
None required
None required
If available
Required
Possibly
Recommended
Essential
Many by all staff
Process flow sheets
Assumed
Preliminary
Optimised
Finalised
Bench scale tests
If available
Recommended
Essential
Essential
Pilot plant tests
Not needed
Not essential
Recommended
Essential
Material balances
Not needed
Preliminary
Optimised
Finalised
Site visits
Process
Facility design
Nature of facilities
Conceptual
Possible
Probable
Actual
Equipment selection
Conceptual
Preliminary
Optimised
Finalised
General arrangements
None
Minimum
Semi-final
Complete
Piping diagrams
None
None
One line
Complete
Electrical drawings
None
None
One line
Complete
Structural drawings
None
None
Minimum
Many completed
Specifications
None
Performance
General
Detailed
Estimates prepared by
Project engineer
Senior estimators
Senior estimators
Estimating department
Vendor quotation
Previous/phone
Single source
Multiple source
Competitive
Basis of capital costs
Civil work
Mechanical and piping
Structural work
Electrical work (ex-motors)
Sketches
Sketches
Sketches/drawings
Quantity take-off
% of machinery
% of machinery
Quantity take-off
Quantity take-off
Sketches
Sketches/drawings
Sketches/drawings
Quantity take-off
$/connected hp
$/connected hp
Quantity take-off
Quantity take-off
Indirect costs
% of totals
% of totals
% of totals
Calculated/actual
Contingency
20 - 30%
15 - 25%
15 - 20%
Never less than 10%
Labour rates
Assumed/actual
Actual if possible
Obtain contract copies
Be assured of rates
Labour burden
Assumed/actual
Actual
Determined
Actual in effect
Power costs
Assumed/actual
Actual
Actual
Get contract
Fuel costs
Operating costs
Assumed/actual
Actual
Actual
Get contract
Expendable supplies
Assumed
Verbal quotes
Actual/letter quotes
Actual/letter quotes
Reagents
Assumed
Verbal quotes
Letter/quotes/published
Actual/published prices
Parts
% of machinery cost
% of machinery cost
Letter/quotes or % mach.
Letter quotes
Economic analysis (DCF)
Seldom expected
If requested
If requested
If requested
Use of estimates, studies
Comparison/rejection
Preliminary feasibility
Budget and preliminary approval
Final approval/finance
DCF discounted cash flow.
517
APPENDIX 3
Checklist for work normally required for the various
classes of estimate (after Northcote, 1998; Kerzner, 1992)
Estimate type
Item
Estimate type
Item
Data required for preparation of estimates (cont...).
10%
15%
25%
Enquiry
Legibility
Copies
Schedule
Vendor enquiries
Subcontract packages
X
X
30%
10%
15%
Property protection
Accessibility to site
Shipping and delivery conditions
Major cost is factored
Major equipment
Preliminary sizes and materials

Finalised sizes and materials
Listing
Site visit
Estimate bulks
Labour rates
Equipment and subcontract selection
Engineering
Taxes, insurance and royalties
Plot plant and elevations
Home office costs
Routing diagrams
Construction indirects
Piping line index
Basis of estimate
Electrical single lines
X
X
Bulk material quantities

X
Finalised design quantity take-off
Preliminary materials and take-off
Equipment list
Fire protection
Summary sheet
Sewer systems
X
X
Management review
Professional services detailed estimate
Management approval
Professional services ratioed estimate
Computer estimate
Data required for preparation of estimates

(after Northcote, 1998; Kerzner, 1992)
Estimate type
Labour productivity and area practices
Detailed construction execution plan
Field indirects detailed estimate
Field indirects ratioed estimate
10%
15%
25%
30%
Product
Detailed schedule of execution
Process description
Estimating preparation schedule
Capacity
Location specific
Basic design criteria
General design specification
General
Process
Process block flow diagram
Process flow diagram
Mechanical process and instrument diagrams
Equipment list
Miscellaneous
Transportation rates
Start-up
Insurance and taxes
Royalties
Import/export rates
Financing data
Escalation
X
Escalation analysis
Contingency
Site
Soil conditions
Site clearance
Geological and meteorological data
Roads, paving and landscaping
518
Schedule
Overall timing of execution
Location general
Construction
Labour wage, labour on-costs, travel rates
Item
30%
Site
25%
Identifiable risk analysis
HOME
Reflections on Front-End Loading

in Mine Project Development
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ABSTRACT
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TABLE 1
The top seven of 26 influencers that promote project failures
in rank order (after Powell, 2003).
Rank
Influencer
Poor scope definition
Lack of project management discipline
Fire fighting
WHY DO PROJECTS CONTINUE TO FAIL?
Poor business processes
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Some causes of project failures

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TABLE 2
Other common project delivery issues.
Rank
Issues
Projects are allowed through gates despite deficiencies: the gate is not
rigorously applied.
Deficient Ore Reserves, for example not enough proven material for rampup or variations in ore physical properties underappreciated.
Too many changes are allowed because the scope is not tightly defined
in front-end loading (FEL) 3 with a view to eliminating as many optional
changes as possible.
The knock-on or secondary effects of changes are not appreciated. Cooper

(2011) and Cooper and Lee (2009) have found through analysis and
simulations on many projects that the secondary effects of changes can
be from two to four times the direct cost of the change. Taylor and Ford
(2008) showed that the cumulative effects on complex projects can be
devastating.
Risk analyses are insufficiently comprehensive (external risks are rarely

costed) and as a result risk treatment plans and contingency allowances
are under estimated.
Unwarranted assumptions and or exclusions are not challenged and as a

result risk and contingency are underestimated.
Underestimation bias by consultants and engineers of project costs in

order to have the project proceed to the next stage, thereby creating an
opportunity to win the next stage contract. Underestimation by contractors
when bidding in order to win a contract in stage four with an expectation
to make it up through extras.
Disagreements among the owners when in a joint venture leads to delays

and disruption.
The selected contracting strategy makes for inappropriate risk sharing

between the major parties, resulting in claims and loss of momentum.
Focusing on delivery
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TABLE 3
Helpful execution questions at gate three.
No
Questions
Where are the physical and temporal boundaries between the scopes
of work assigned to different groups? What precautions were taken to
eliminate interface issues?
Does everyone share the same project vision and have the same
expectations of the investment? How do you know?
Have you checked the fine print in the estimate, including the exclusions
and assumptions? Do they correspond to the claimed precision, accuracy,
scope, schedule and quality?
When do you plan to start in the field? Is this the optimum, considering
the current status of engineering and procurement?
If reviewing an updated capex estimate, are all inputs up to date and do

they all meet front-end loading (FEL) standards? If not, are the deficient
ones specified in the contingency allowance?
What time has been allocated for the next independent peer reviews? Is
the timing sufficient?
Many projects want to be fast track. What does that actually mean
in practice? How will fast track project management differ from
conventional? For example, will procurement decisions be made on
schedule regardless of the status of engineering deliverables? Has this
been recognised in the estimate?
How have detailed engineering and construction productivity factors been

benchmarked?
What other projects will be in construction in the region and competing

for construction resources?
10
How will the project cope with information delays?
11
What steps have been taken to eliminate as far as possible all changes
after sanction?
CONCLUSIONS
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Whittle Optimisation
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ABSTRACT
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1. MAusIMM, Managing Director, Whittle Consulting Pty Ltd, Suite 8, 660 Canterbury Road, Surrey Hills Vic 3127. Email: [email protected]
INTRODUCTION
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Effect of progressive optimisation steps.
Step
Case
Net
present
value $ M
% versus
previous
Ore Mt
% versus
previous
Manual
1507
Pit
1587
5.3
349
7.0
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1737
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303
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3.5
319
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285
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319
0.0
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Maximising the Value of

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Where Are We Getting It Right?
S Butel1 and A Ferrier2
ABSTRACT
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1. MAusIMM, Analyst, Pacific Road Capital Management, Level 23, 1 Alfred Street, Sydney NSW 2000. Email: [email protected]
2. MAusIMM, Analyst, Pacific Road Capital Management, Level 23, 1 Alfred Street, Sydney NSW 2000. Email: [email protected]
INTRODUCTION
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FIG 1 - Gold price and global gold equities performance (source: Bloomberg).

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FIG 2 - Theoretical grade tonnage curve.
LOWERING CUT-OFF GRADES

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TABLE 1
Summary of input distributions and parameters.
Parameter
Average
Standard
deviation
Distribution
Mineable tonnes (M)
31
5%
Normal
Grade (g/t)
1.0
5%
Normal
Recovery (%)
Gold price
90
5%
Normal
1650
15%
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TABLE 2
Results of Monte Carlo simulation.
Scenario 1
Scenario 2
Scenario 3
Taylors Rule
100 koz pa
Maximum
net present
value
Throughput (Mt/a)
2.1
3.5
7.8
Capital expenses ($ M)
155
210
342
Average net present value ($ M)
168
246
312
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37%
40%
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value project
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4%
12%
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Description
Returns generated from simulation
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Economies of scale assumptions.
Scenario
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Scenario B
Scenario C
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ABSTRACT
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1. MAusIMM, Manager Underground Design and Operations, Resource Development and Innovation, Oyu Tolgoi Phase 2 Project, Rio Tinto Copper, 123 Albert Street, Brisbane Qld 4000.
Email: [email protected]
INTRODUCTION
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REFERENCES
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FIG 1 - Typical flow mechanisms in a block cave (Diering, 2007).

TABLE 1
Reserve classification suggestions for different flow types.
Movement
Predictability
Risk level
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Overall behaviour well understood even if difficult to model
Low
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Reserve classification
This would form part of the highest confidence level of
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Material that undergoes rilling may still be recovered, but
often, dilution material can rill into a gap, delaying the
arrival of higher ore
Great caution should be exercised before including this
material in an Ore Reserve
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Reserve Estimation for Block Cave Mines using PCBC|T Diering
TABLE 2
Abbreviated Reserve evaluation checklist.
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Excavation geometry
t Drawpoint spacing
t Tunnel spacing
t Hydraulic radius
t Flat versus inclined
t Block versus panel
perimeter
t Smooth
t Base of cones
Sequence and history

t Start point
t Interior
t Exterior
t Single versus multipanel
t Number of cave initiation
points
t Dilution on shared
boundaries
Residual and multi-lift

t Single versus multilift
t Simple background
t Computed background
t Confidence level
t Historical records
t Metal balance
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REFERENCES
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1. FAusIMM(CP), Seedsman Geotechnics Pty Ltd, Mittagong NSW 2575. Email: [email protected]
LONGWALL MINING SYSTEM

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FIG 1 - Typical longwall face support showing theoretical vertical stress distributions (modified from Barczac and Gearhart, 1992).
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FIG 3 - Typical roof and floor conditions (note different bedding

and joint spacings and a non-vertical joint set in the coal).
FIG 2 - Terminology applied to longwall layouts (two heading gateroads).

Position a: front abutment loading. Position b: main gate loading condition.
Position c: tailgate loading condition. Position d: double goaf loading.
(From Colwell, 1998.)
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FIG 5 - Moment loading of square joint blocks (leg located 3.5 m from face line, 1 m wide shear).
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FIG 8 - Illustration of the geometry of a small-scale thrust fault ramping

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FIG 7 - Examples of faults with less than half seam vertical displacement (redrawn from Hanson et al, 2004; Li, 2001).
561
ASPECTS OF THE MINE LAYOUT

Longwall face orientation
Tip-to-face stability
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FIG 10 - Loss of tip-to-face as a function of the angle to the joints

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FIG 9 - Induced horizontal stresses at 0.2 m above the roof line in the tip-to-face area.
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FIG 11 - Face spalling is related to the angle of the cleat (after Farmer, 1985).
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563
FIG 13 - Relationship between massive unit thickness and equivalent spans to ability to span.
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FIG 14 - Indicative chain pillar width (two heading development, 300 m wide panels).
564
TABLE 1
General guidelines for roadways in single seam longwall layouts
and less than 5.5 m wide.
Ground conditions
Bolts development
roadways
Extended cuts
In-place bolter miners
Stone roof >300 mm thick

Coal roof >500 mm thick
No faults
All roof types

Faults
Minimum four bolts

every 1.5 m
One of X grade 22mm

diameter bolt/m for every
55m depth of cover
Long tendons
development roadways
Skin development
roadways
FIG 15 - Logical framework for roof support (Seedsman, 2012).

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60.0
Mesh panels preferred
Maingates
Long tendons if rock strength index <3.5
Tailgates
Additional support needed if chain pillar is

designed to yield at the tailgate corner
Ribs <2.5 m high
One bolt/m beyond 150 m depth
Ribs >2.5 m high
Two bolt/m beyond 100 m depth
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TABLE 2
Data for qualified and justified geotechnical models for longwall assessment (after Haile, 2004).
Data type
General requirements and
model reliability
Minimum geotechnical
Qualified
Justified
Broad indication of spatial variability of the in situ geotechnical

characteristics. Reasonably reliable mine design parameters. Possible
variability could have moderate impact on economic viability.
High level of confidence in the spatial variability. Comprehensive scope of

analysis could be applied. Possible variability in the geotechnical model
would not significantly affect the economic variability.
Tip-to-face, floor strength, caving

Geology model
Thickness, depth and dip over an area of say 20 km2 from the resource estimate
Seam geometry
Seam continuity faults
Thrust faults,
Bedding shears
Normal faults with throws greater than half seam thickness identified
from drilling and/or geophysics
Igneous activity dykes
Regional model
Geophysical survey for dykes with magnetic properties.

Blind to non-magnetic ones
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Regional model for alteration below base of weathering
Well defined near base of weathering
Rock mass
Roof and floor lithologies
Roof and floor strengths
From resource drilling

Sonic derived strengths from resource data
Sonic derived validated by laboratory testing. Less than 500 m centres
Discontinuities
Cleat sets and orientations
Regional model derived from structural geology
Site-specific borehole studies
Joint sets and orientations
Regional model derived from structural geology
Massive overburden units
Core logging supported by depositional environment model
Breakout and regional models
Breakout and borehole overcore or hydraulic fracture
Regional model
Site-specific
Stress regime
Hydrogeological model
568
FIG 20 - JORC, geotechnical and subsidence study flow paths.

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Exploration and
Data Collection
The Resource
Database
Geological
Interpretation
and Modelling
Mineral Resource
Estimation,
Classification and
Reporting
Modifying Factors

Assessments
Ore Reserve
Estimation,
Classification and
Reporting
Monitoring the
Resources and
Reserves
Grade Control,
Production and
Reconciliation
Chapter 7 | Risk in Resource and Reserve

Estimation
Overview Risk in Resource and Reserve Estimation
C De-Vitry
573
Evaluating Resource Risk The Due Diligence Process
S Dunham
579
The Importance of Understanding Uncertainty and Risk Associated with All Geological Inputs to Ore Reserves
M Berry
585
Scenario Thinking A Powerful Tool for Strategic Planning and Evaluation of Mining Projects and Operations
J Vann, S Jackson, A Bye, S Coward,

S Moayer, G Nicholas and R Wolff
593
Non-Technical Risks and Their Impact on the Mining Industry
A Trench, D Packey and J P Sykes
605
Exposing Uncertainty in Schedules for Proactive Stockpile Planning
J Coombes, C Standing,
R Lacourt Rodrigues and C Queiroz
619
Reserves, Reserves and not a Tonne to Mine A Study of Reserves Reported Prior to Mine Closure
M Creech
627
Back to Basics Geological and Mining Risks and Financial Issues on Resource and Reserve Evaluation in
Coal Projects
H Arden and W Lewis
635
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Overview Risk in Resource

and Reserve Estimation
C De-Vitry1
ABSTRACT
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INTRODUCTION
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TABLE 1
Sample spacing and orientation considerations.
Aspect
Indication
All holes have the same orientation

(orientation bias)
Potential for unrecognised structures or

features parallel to drill direction
Data clustered in higher grade areas
Estimation method must correctly

decluster or there is a risk of
overestimating average grade
Data on regular grid
Risk of drill to wavelength issues; may

not have data for short-scale features
Fan drilling (eg from underground sites) Data clustered near collars and dispersed
at end-of-hole; confidence from collar to
end-of-hole will decrease
Data spacing greater than apparent scale Subsequent interpretation may be overly
of geometric variability
simplistic or smooth; may not identify
boundary/shape variations that impact
on dilution and ore loss
Data spacing greater than apparent
grade variability
Subsequent grade estimate may be

overly smooth; may not identify grade
variability that impacts on schedule
performance
Interpretation and domaining

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The Importance of Understanding

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1. Principal Geologist, AMC Consultants Pty Ltd, Level 21, 179 Turbot Street, Brisbane Qld 4000. Email: [email protected]
INTRODUCTION
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TABLE 1
Financial assessment of all costs associated with unplanned dilution in a hypothetical underground gold mine.
Operational setting
Location
WA goldfields
Mining/processing details
tSmall-scale operation with decline access

t200 000 t ore per annum from 200 - 500 m depth
tsublevel open stoping with voids backfilled
tcontract mining
t95% recovery of Au
Planned stope production

Planned stope production
24 000 t @ 6.75 g/t Au (comprising an ore zone of 20 000 t @ 8.0 g/t Au and dilution of 4000 t @ 0.5 g/t Au)
Direct mining and processing costs
$1.92 M (based on a nominal cost of $80/t)
Indirect costs
$1.20 M (based on a nominal cost of $10 M/year)
Recovered value of Au
$7.42 M (based on Au price of A$1500/ounce)
Planned EBIT from stope
$4.30 M
Actual stope reconciliation

Actual stope production
29 000 t @ 4.9 g/t Au (recovered ore zone of 17 000 t @ 8 g/t Au with dilution of 12 000 t @ 0.5 g/t Au)
Direct mining and processing costs
$2.32 M (based on a nominal cost of $80/t)
Indirect costs
$1.45 M (based on a nominal cost of $10 M/year)
Recovered value of Au
$6.51 M (based on Au price of A$1500/ounce)
Actual EBIT from stope
$2.74 M
Direct earnings loss caused by unplanned dilution
$1.56 M
Other costs associated with dilution

Delays to development and production schedules
elsewhere in the mine due to extra material mined
$0.40 M (based on earnings of $35 M/a for five years delayed by ten days at 10% discount rate)
Back-filling of void requires more time and material than

planned
$0.05 M (based on a nominal filling cost of $10/t)
Reduced metallurgical recovery due to lower head grade
$0.14 M (based on recovery reduced to 93%)
Other tangible costs
$0.05 M (extra engineering and supervision to address problem)
Estimate of intangible costs
$0.10 M (audits, loss of confidence/morale, added management requirements, etc)
Total of other costs caused by unplanned dilution
$0.74 M
Planned EBIT from stope
Actual EBIT (using only direct costs)
Actual EBIT (including all costs)
$4.30 M
$2.74 M
$2.0 M
EBIT earnings before interest and tax.
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Scenario Thinking A Powerful Tool for

Strategic Planning and Evaluation of
Mining Projects and Operations
J Vann1,2,3,4, S Jackson2,5, A Bye6,7, S Coward8, S Moayer9,
G Nicholas10 and R Wolff11
ABSTRACT
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2. Adjunct Professor, WH Bryan Mining and Geology Research Centre, The University of Queensland, Brisbane Qld 4072.
3. Adjunct Professor, Centre for Exploration Targeting, The University of Western Australia, Crawley WA 6009.
4. Adjunct Senior Lecturer, School of Civil Environmental and Mining Engineering, The University of Adelaide, Adelaide SA 5000.
5. FAusIMM, Managing Director, Quantitative Group, PO Box 1304, Fremantle WA 6959. Email: [email protected]
6. CEO, Cooperative Research Centre for Optimising Ore Extraction (CRCORE), PO Box 6043, St Lucia Qld 4067. Email: [email protected]
7. Professor, WH Bryan Mining and Geology Research Centre, The University of Queensland, Brisbane Qld 4072.
8. MAusIMM, Principal Consultant, Quantitative Group, PO Box 1304, Fremantle WA 6959. Email: [email protected]
9. MAusIMM, Principal Consultant, Quantitative Group, PO Box 1304, Fremantle WA 6959. Email: [email protected]
10. FAusIMM, Director Natural Resources, ANZ Institutional Banking, 7/77 St Georges Terrace, Perth WA 6000. Email: [email protected]
11. Professor and Chair in Geostatistics and Mine Planning, WH Bryan Mining and Geology Research Centre, The University of Queensland, Brisbane Qld 4072. Email: [email protected]
INTRODUCTION
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SCENARIO-BASED PROJECT EVALUATION
TABLE 1
Summary of salient features, aims and assumptions of the traditional
project evaluation paradigm versus the approach proposed here,
scenario-based project evaluation.
Traditional approach
Scenario-based/
variability-driven approach
Overview of the approach

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Non-Technical Risks and Their

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A Trench1, D Packey2 and J P Sykes3
ABSTRACT
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1. MAusIMM, Professor, Department of Mineral and Energy Economics, Graduate School of Business, Curtin University of Technology and Centre for Exploration Targeting, University of Western
Australia. Email: [email protected]

2. MAusIMM, Professor, Department of Mineral and Energy Economics, Graduate School of Business, Curtin University of Technology. Email: [email protected]
3. MAusIMM, Director, Greenfields Research (UK), also at Department of Mineral and Energy Economics, Graduate School of Business, Curtin University of Technology and Centre for Exploration
Targeting, University of Western Australia. Email: [email protected]
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TABLE 1
Sample of data from Corruption Perceptions Index
(data: Transparency International, 2012a).
Rank
Country
Score
Denmark
90
Finland
90
New Zealand
90
Sweden
88
Singapore
87
Switzerland
86
Australia
85
Norway
85
Canada
84
Netherlands
84
165
Burundi
19
Chad
19
Haiti
19
Venezuela
19
Green (environmental) tape
169
Iraq
18
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170
Turkmenistan
17
Uzbekistan
17
172
Myanmar
15
173
Sudan
13
174
Afghanistan
North Korea
Somalia
608
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TABLE 2
Summary of the Fraser Institute annual survey of mining (data: Fraser Institute, 2012).
Rank
Country
Policy potential
Administration
certainty (%)
Low trade barriers

(%)
Political stability
(%)
Low corruption
(%)
Mining certainty
(%)
New Brunswick
95.0
31
43
77
69
41
Finland
92.4
37
44
65
79
41
Alberta
91.5
40
52
72
67
41
Wyoming
89.6
41
42
58
72
37
Quebec
89.0
48
41
60
59
30
89
India
12.4
14
90
Venezuela
10.9
91
Bolivia
8.1
10
92
Guatemala
2.9
93
Honduras
1.7
610
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TABLE 3
The most problematic factors for doing business in Australia
(data: World Economic Forum, 2013).
Factor
Restrictive labour regulations
20.3
Inefficient government bureaucracy
14.0
Tax rates
9.8
Tax regulations
9.4
Access to financing
9.0
Poor work ethic in national labour force
8.6
Policy instability
6.5
Inadequate supply of infrastructure
5.4
Inadequately educated workforce
5.1
Insufficient capacity to innovate
5.1
Foreign currency regulations
2.9
Government instability/coups
2.1
Inflation
1.8
Poor public health
0.1
Corruption
0.0
Crime and theft
0.0
TABLE 4
Selected global competitiveness data for Australia
Indicator
Selected factor
Rank /144
1.01
Property rights
25
1.05
Irregular payments and bribes
20
1.09
Burden of government regulation
96
1.14
Business cost of crime and violence
25
2.01
Quality of overall infrastructure
36
3.05
Country credit rating
10
6.09
Prevalence of trade barriers
6.12
Business impact of rules on foreign direct investment
42
7.01
Cooperation in employer/labour relations
67
611
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TABLE 7
Global competitiveness report burden of government regulation
Rank
Country
Score / 7
Singapore
5.6
Rwanda
5.3
Qatar
5.1
Hong Kong SAR
5.0
United Arab Emirates
4.8
140
Algeria
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142
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143
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144
Brazil
2.0
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TABLE 5
Global competitiveness report property rights
Rank
Country
Score / 7
Finland
6.5
Switzerland
6.4
Singapore
6.4
Luxembourg
6.2
United Kingdom
6.2
140
Algeria
2.5
141
Burundi
2.4
142
Kyrgyz Republic
2.4
143
Haiti
2.1
144
Venezuela
1.8
TABLE 6
Global competitiveness report irregular payments and bribes
Rank
Country
Score / 7
New Zealand
6.7
Finland
6.6
Singapore
6.6
Denmark
6.4
Iceland
6.4
140
Burundi
2.3
141
Chad
2.3
142
Guinea
2.3
143
Bolivia
2.3
144
Bangladesh
2.2
612
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Exposing Uncertainty in Schedules

for Proactive Stockpile Planning*
J Coombes1, C Standing2, R Lacourt Rodrigues3 and
C Queiroz4
ABSTRACT
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2. MAusIMM, Principal Consultant, Corporate Services, Optiro Pty Ltd, PO Box 1646, West Perth WA 6872. Email: [email protected]
3. Consultant Mining Engineer, AngloGold Ashanti, Belo Horizonte, MG, Brazil.
4. Geologist, Companhia Vale do Rio Doce, Rodovia BR 262 KM 296, Santa Luzia MG, Brazil. Email: [email protected]
* This paper was previously published in Proceedings Iron Ore 2005 Conference, pp 263-270 (The Australasian Institute of Mining and Metallurgy: Melbourne).
INTRODUCTION
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TABLE 1
Description of domains/rock types used in conditional simulation.
Domain codes
Description
Low MgO
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FIG 2 - Schematic geological section of the Vermelho Deposit.

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Reserves, Reserves and not a Tonne to Mine A Study of Reserves Reported Prior to Mine Closure| M Creech
TABLE 1
Mine closures and Reserves (1975 to 2012).
Location
Date closed
Reserves (Mt)
Reason for closure
Year prior to closure
2 - 3 years prior
New South Wales

Aberdare Nth
1988
2.5
2.5
Uneconomic pillars and top coal left
Avon
1992
Uneconomic now owned by the Dept Natural Resources and Environment
Awaba
2011
0.5
0.4
Reserve depletion seam
Bellbird
1984
35
35
Uneconomic
Benwerrin
1987
Uneconomic only pillars left
Blue Mountains
1999
0.7
Reserve depletion
Brimstone
2000
5.5
Uneconomic
Bulli
1987
30
35
Reserve depletion
Canyon
1997
11
12
Reserve depletion underground Lithgow
Coalcliff
1991
12
Uneconomic distance from pit top
Cooranbong
2002
2.5
Other pillars left part of Mandalong
Cordeaux
2001
4.5
Reserve depletion Bulli seam, Wongawilli too gassy
Corrimal
1985
11
11
Uneconomic
Cumnock #1
2006
Geology geotech/roof issues may reopen as open cut
Dartbrook underground
2006
55
63
Uneconomic/geotech/gas mined basal seam first?
Eloura
2006
17
Uneconomic
Endeavour/Newvale #2
1999
0.5
19
Reserve depletion claystone roof/thinning seam
Enhance Place
2006
0.2
Reserve depletion
Fernbrook
1986
17
17
Uneconomic
Gretley/New Wallsend 2
2005
6.5
7.6
Other inrush (1996) reopened depletion of mini wall Reserves
Grose Valley
1987
1.5
25
Reserve depletion
GT Greta
1999
4.5
5.5
Geology geotech roof control
Gunnedah underground
2007
198
Reserve depletion, intrusions
Huntley
1989
55
55
Other Tallawarra Power Station closed lost market
Invincible
2001
10.5
5.7
Other
Ivanhoe
2005
0.5
0.75
Reserve depletion
John Darling
1987
33
Reserve depletion thinning seam
Kandos
2001
0.75
Reserve depletion lack of Resources
Kemira
1991
213
214
Other poor quality, economics, water transfer to Dendrobium
Lambton
1991
6.2
2.4
Uneconomic thinning seam/water ingress after earthquake
Lemington underground
1987
98
98
Uneconomic
Liddell State
1991
82
82
Uneconomic transferred to Cumnock #1
Mannering
2012
10
12
Uneconomic
Moonee
2002
9.9
12
Geology windblasts/poor roof, structures
Munmorah
2005
4.1
6.2
Reserve depletion thinning seam, claystone roof
Muswellbrook
underground
1985
25
25
Uneconomic
Nardell
2003
196
196
Nattai Bulli
1990
Uneconomic transferred to Elouera and Dendrobium
Other restarted as Newpac 2005 with 73 Mt
Newstan
2009
54
Reserve depletion wbh seam
Newvale #1
1993
110
113
Uneconomic claystone roof, quality, no longwall (Fass)
Northcliff
1993
95
95
Uneconomic gas / structures corp focus to West Cliff
Oakdale
2001
68
68
Uneconomic
629
TABLE 1
Cont
Location
Date closed
Reserves (Mt)
Reason for closure
2 - 3 years prior
48
New South Wales

Pelton/Ellalong
1998
48
Uneconomic now part of Austar
Preston
1985
0.2
Reserve depletion
Southland
2004
48
48
Other underground fire part of Austar
Stanford Main
1984
57
57
Other care and maintenance
South Bulli
1996
9.7
66
Other political, union issues, outburst, transfer to Gujarat #1 (NRE)
Stockrington
1988
11
11
Reserve depletion seam deterioration, pillars left
Stockton Borehole
1990
28
28
Other gas from Teralba lease transfer
Swamp Creek open cut
1991
92
92
Uneconomic transfer to Mt Owen
Teralba
2001
2.8
2.8
Reserve depletion, gas
Tower/West Appin
2002
35
63
Other consolidation / industrial rationalisation
Ulan open cut
2008
206
209
Reserve depletion
Ulan underground
1975
76
76
Uneconomic/fires now part of open cut/part seam only
Vickery open cut
1998
Other industrial
Wallamaine
1985
16
16
Uneconomic/surface constraints
Wallarah
2000
15
Reserve depletion/claystone roof
Wallsend Borehole
1988
31
13
Reserve depletion
Wambo underground
1980
15
15
Other geotech/water issues/wrong wall (too big)
Westside open cut
2012
0.3
0.5
Reserve depletion
Wongawilli and Nebo
1992
123
123
Other transfer to Eloura then Dendrobium
Wyee
2002
35
44
Geology transfer to Mannering (first workings only 7 Mt)
Yellow Rock
1987
1.3
Reserve depletion
63
33
40
NSW average
Queensland
Ballamoo
1983
Blackheath (Rhonnda)
1985
35
Other flood event underground highwall entry
Blair Athol open cut
2012
Bocum / Bowen (Collinsville)
1998
45
Box Flat open cut
1989
Box Flat underground
1986
20
Other gas explosion in 1970s, rescue team lost; loss of market
Burgowan
1997
Uneconomic
Cook
1982
Other outbursts
Dacon East (Collinsville)
1983
Reserve depletion
Dawson Valley (Moura)
1988
Geology faulting
Uneconomic underground (1983) and open cut (1985)

10
Uneconomic
Reserve depletion, uneconomic, outburst limits
Reserve depletion
Ebenezer
2002
Uneconomic
Garrick (Collinsville)
1987
Reserve depletion
Gregory open cut
2012
10
Haenke (Rhonnda)
1993
20
Harrow Creek
1987
Jeebropilly
2006
Kianga
1981
100
Leichhardt
1982
Uneconomic high gas/structures
Moura open cut
1998
Reserve depletion
Moura No 4 underground
1986
630
12
Uneconomic
Reserve depletion
Other priority to open cut (Peak Downs)
32
Reserve depletion
Other explosion
Explosion
TABLE 1
Cont
Location
Date closed
Reserves (Mt)
Reason for closure
2 - 3 years prior
Queensland
Moura No 2 underground
1994
48
0
Explosion
New Hope (Rhonnda)
1998
New Whitwood
1993
Reserve depletion
New Haenke (New Hope)

underground
1996
12
Uneconomic
New Oakleigh (New

Hope)
2008
18
Uneconomic
Reserve depletion
Normanton
1979
Norwich Park open cut
2012
Oakey Creek underground
2002
Oakleigh
1999
Reserve depletion
Pipeline
2002
Reserve depletion
Rylance
1983
Reserve depletion
Southern
1986
Reserve depletion
South Blackwater open cut
2002
South Blackwater
underground
2001
Uneconomic
271
275
Other
Reserve depletion
Reserve depletion
130
Geology geotech (roof), faulting, uneconomic
Southern Cross (Oaky)
1985
Swanbank
2003
Uneconomic
Other market loss/power station shut down
Wattle Glen
1984
Resource depletion
Westfalen
Resource depletion
1988
50
Queensland average
38
39
Australia average
101
34
Sources: primary New South Wales Department of Primary Industries, Queensland Department of Mines and Energy, New South Wales Coal Industry Profiles; Secondary opinion, hearsay and rumour
(corroborated where possible).
TABLE 2
Reasons for mine closure over time.
1983 to 1993
1996 to 2006
Reason for closure
(%)
Lost Reserves (Mt)
(%)
Lost Reserves (Mt)
Reserve depletion
35
15
45
Uneconomic
37
34
22
25
Geology/other
28
78
33
38
Total/average
43 closures
40
40 closures
23
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FIG 1 - Mine closures and real coal prices in Australian dollars adjusted for inflation.
TABLE 3
Reserves reported the year before mine closure.
Category
Total
Underground
Open cut
New South Wales
Queensland
Mt
Mt
Mt
Mt
Mt
Reserve depletion
39
32
25
14
37
22
14
17
15
Uneconomic
34
40
25
43
58
23
43
11
30
Geology
30
30
30
30
Other
22
59
17
39
100
13
45
94
Totals/average
101
33
73
29
28
61
63
32
38
38
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REFERENCES
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HOME
Back to Basics Geological and Mining

Risks and Financial Issues on Resource
and Reserve Evaluation in Coal Projects
H Arden1 and W Lewis2
ABSTRACT
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1. Principal Geologist, Project Manager, IMC Group Consulting Ltd, 10 Grosvenor Gardens, London SW1W 0DH, UK. Email: [email protected]
2. Principal Financial Expert, IMC Group Consulting, UK, Icon Business Centre, Lakeview Drive, Sherwood Park NG15 0DT, UK. Email: [email protected]
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TABLE 1
Evaluation of risks.
Risk rank = consequence likelihood
Likelihood
Rare
(1)
Unlikely
(2)
Possible
(3)
Likely
(4)
Almost
certain (5)
Insignificant
Minor
10
Moderate
12
15
Consequence
Major
12
16
20
Catastrophic
10
15
20
25
Low risk
636
Medium risk
High risk
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Exploration and
Data Collection
The Resource
Database
Geological
Interpretation
and Modelling
Mineral Resource
Estimation,
Classification and
Reporting
Modifying Factors

Assessments
Ore Reserve
Estimation,
Classification and
Reporting
Monitoring the
Resources and
Reserves
Grade Control,
Production and
Reconciliation
Chapter 8 | Monitoring and Exploiting the Reserve

Overview Monitoring and Exploiting the Reserve
C Morley
647
Predicting the Unpredictable Evaluating High-Nugget Effect Gold Deposits
S C Dominy
659
S Rose and G Fahey
679
Grade Control Based on Economic Ore/Waste Classification Functions and Stochastic Simulations
Examples, Comparisons and Applications
R Dimitrakopoulos and M Godoy
685
Planning Strategies to Increase Project Value
T Elkington
701
Interpreting Long-Term Mine to Mill Trends at St Ives Gold Mine
J Donaldson, C Ferguson and

E Murray-Hayden
707
Reconciliation Principles for the Mining Industry
H M Parker
721
Mining Reconciliation An Overview of Data Collection Points and Data Analysis
R Hargreaves and C Morley
739
A Strategy to Minimise Ore Grade Reconciliation Problems between the Mine and the Mill
F F Pitard
749
Guide to Creating a Mine Site Reconciliation Code of Practice
C Morley
755
HOME
Overview Monitoring and

Exploiting the Reserve
C Morley1
ABSTRACT
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INTRODUCTION
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Predicting the Unpredictable

Evaluating High-Nugget Effect
Gold Deposits
S C Dominy1,2,3
ABSTRACT
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1. FAusIMM (CP), Executive Consultant, Snowden Group, Paddington Central, 1 Kingdom Street, London W2 6BD, UK. Email [email protected]
2. Visiting Professor, Camborne School of Mines, University of Exeter, Cornwall Campus, Penryn, Cornwall TR10 9FE, UK. Email: [email protected]
3. Adjunct Professor, Western Australian School of Mines, Curtin University, Bentley Campus, Perth WA 6102.
INTRODUCTION
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Chapter 8| Monitoring and Exploiting the Reserve
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FIG 1 - Different styles of vein mineralisation that typically show a high-nugget effect. (A) Gold-quartz vein array in the Llanberris Mako lode, Ballarat East mine,
Victoria, Australia. (B) Narrow splitting gold-quartz vein, part of a wide-sheeted vein system at the Bjorkdal mine, Skelleftea, Sweden. (C) No 2A saddle reef, Dufferin
mine, Nova Scotia, Canada. (D) Gold-quartz-sulfide lode in the Imperial mine, Queensland, Australia. (E) Quartz stockwork veining in the A1 Consolidated mine,
Victoria, Australia.
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Predicting the Unpredictable Evaluating High-Nugget Effect Gold Deposits| S C Dominy
TABLE 1
Characteristics of high-nugget gold deposits in relation to the degree of nugget effect and project risk. Risk given is relative within the range expected
in high-nugget systems. Range of project types is not intended to be exhaustive. Data spacings given are general only.
Characteristic/risk
Low
Moderate
High
Extreme
Extreme
>10 g/t Au (UG)
<4 g/t Au (OP)

>4 g/t Au (UG)
<4 g/t Au (OP)

>4 g/t Au (UG)
>4 g/t Au (UG)
<4 g/t (OP)
geometrical form
Tabular
Tabular
Tabular to irregular
internal architecture
Single composite vein
Single composite vein
Single composite vein(s)

to stockwork system
Composite en echelon
or stockwork system
Single composite vein(s)

to stockwork system
Gold particle sizing
Minor coarse gold 10%

>100 m
Coarse gold 25% >100 m
Dominant coarse gold 50%

>500 m
50 - 60%
60 - 70%
70 - 80%
>80%
>80%
<300
>2500
>15 000
>30 000
>250 000
20 - 30 m DD grid
development
OP: <15 m by 15 m RC grid

UG: <20 m by 20 m DD
plus development
OP: <15 m by 15 m RC grid

UG: <15 m by 15 m DD
plus development
<15 m by 15 m DD plus
development (potentially
only an Inferred Resource)
<10 m by 10 m RC grid
Head grade
Nugget effect
Indicative sampling
constant (K)
Indicative data spacing
to achieve an Indicated
Mineral Resource
Probable Ore Reserve at the
grade controlmine design
stage based on known
deposits
Dominant coarse-clustered Dominant coarse-clustered,

50% >1000 m
50% >1000 m
Note: OP open pit; UG underground; DD diamond drilling; RC reverse circulation drilling.
Gold particle sizing

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FIG 2 - (A) Isolated, visible coarse gold particles in core from the Ballarat East
mine. (B) Ultra-high-grade core, where gold forms a continuous network
through quartz.
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FIG 3 - Application of X-ray computer microtomography (XCMT) to the evaluation of gold particles in a high-grade (>60 g/t Au) sample from the Nalunaq mine,
Greenland. (A) Photograph of sample surface with sulfides and trace visible gold (sample length 11 cm); (B) XCMT image of surface skin showing little gold (blue
circles); and (C) full-depth XCMT image showing a cluster of gold particles approximately 25 mm across. XCMT resolution approximately 150 m (after Dominy et al,
2011a; images from Natural History Museum, London).
Background fine versus coarse gold particles

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THE NUGGET EFFECT

Defining the nugget effect
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Sampling errors and the nugget effect

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TABLE 2
Definition of sampling errors as defined in the Theory of Sampling (Gy, 1979; Pitard, 1993).
Sampling error
Acronym
Error definition
Fundamental
FSE
The FSE results from grade heterogeneity of the broken lot. Out of all sampling errors, the FSE does not cancel out and remains even after
a sampling operation is perfect. Experience shows that the nugget effect can be artificially high because sample weights are not optimal.
Grouping and
segregation
GSE
Relates to the error due to the combination of grouping and segregation of rock fragments in the lot. Once rock is broken, there will be
segregation of particles at any scale (eg surface stockpile or laboratory pulp).
Delimitation
DE
The DE results from an incorrect shape of the volume delimiting a sample.
Extraction
EE
The EE results from the incorrect extraction of a sample. Extraction is only correct when all fragments within the delimited volume are
taken into the sample.
Weighting
WE
WE relates to collecting samples that are of a comparable support. Samples should represent a consistent mass per unit.
Preparation
PE
Refers to issues during sample transport, preparation (contamination and losses) and unintentional and intentional human error.
Analytical
AE
Relates to all errors during the assay and analytical process.
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Cause, effect and solutions to sampling errors.
Sample type
In situ (eg rock chips or core)
Broken rock (from blasted

material to laboratory pulps)
Cause
Error
Effect
Nugget effect
component
In situ heterogeneity
Local representivity
Poor precision
Geological or in situ
Larger samples
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Poor precision
Sampling or human
Optimised protocols
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More samples
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Poor precision
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Optimised protocols
More samples
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sampling errors
DE, EE, WE, PE and AE
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Optimised protocols
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FIG 4 - Analysis of gold particle size and grade in a high-nugget deposit.

(A) Variation of gold particle size fractions based on different grades.
(B) Relationship between sampling liberation diameter and grade. A liberation
diameter of 300 m was used to optimise sampling protocols at the mine cutoff grade of 4 g/t Au. Data based on samples collected and processed using the
methodology described in Dominy, Platten and Xie (2010) and Dominy
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FIG 5 - Optimised sample preparation protocols are critical to the delivery

of quality assay results for coarse gold-bearing samples. (A) Large volume
pulverisers such as the LM5 provide scope of the processing of around 2 kg
subsamples. Cleaning of the bowl between samples is important and will
generally require barren flushes being run. (B) The LeachWELL (bottle roll)
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fire assay of residues if total gold is required.
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FIG 8 - (A) Bendigo gold mine, Australia, Gill reef showing the core zone of a saddle reef structure. The ore lies on the margins of the reef in laminated quartz
material, with low-grade quartz on the middle. Pink circles show the locations of visible gold. This situation may be a prime candidate for resue blasting one side
of the vein first, then the ore, to separate ore from waste. Drive profile approximately 5 m by 5 m. (B) Cononish gold project, Scotland. Map shows the nature of the
Cononish vein as a series splays off a shear structure. This 35m section grades approximately 6 g/t Au, the gold-sulfide veins being marked in red. It is important to
resolve the continuity of the gold-sulfide veins as they carry most of the gold grade. (C) Mapped section of a South American granodiorite-hosted vein showing the
discontinuous nature of the gold-quartz-sulfide vein, an early high-grade vein. The introduction of backs and raise mapping helped to resolve the continuity
of the high-grade vein and led to a more focused stoping approach that improved run-of-mine grade from 4 g/t Au to around 10 g/t Au.
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FIG 9 - Low-angle stope floor after mucking by scraper. Remaining fines

material contains liberated gold. In this case, a detailed stope survey and
sampling program indicated that around 12 per cent of the stope gold
inventory was left on the floor.
FIG 10 - Recovery and dilution control are of major importance during the
stoping of narrow-vein, high-nugget systems. This example shows the floor
of the drive and the stope voids above and below. The vein has been cleanly
extracted with minimal dilution from the stope walls. The ore drive has been
extracted at 3.5 m by 3.5 m and the stope slot to approximately 2 m.
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FIG 11 - Liberated gold undergoing separation on a Wilfley shaking table.

Early recovery of gravity gold is optimal since the sampling of circuits
containing abundant liberated gold can be challenging. Width of view is
approximately 40cm.
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TABLE 4
Example of reconciliation results for a high-nugget underground operation. Probable Ore Reserve estimate is based on diamond drilling and fully sampled and
mapped development within or peripheral to each stope block. Performance figures are rounded to the nearest whole per cent. Nominal Resource classification
based on: Measured <15 per cent, Indicated, 15 - 25 per cent and Inferred >25 - 50 per cent.
Month-by-month results
Month
Tonnes (t)
Grade (g/t Au)
Tonnes (t)
*Grade (g/t Au)
Tonnes (%)
Grade (%)
Nominal
Resource
classification
based on
performance
6900
10.8
6852
10.9
99
101
Measured
Probable Ore Reserve
Mill
Performance (mill/Reserve)
*Reconciled head grade
January
February
6410
10.0
5685
10.9
89
109
Measured
March
6585
6.7
5066
8.7
77
130
Inferred
April
6961
9.6
7280
10.3
105
107
Measured
May
6558
5.4
6805
9.4
104
174
Inferred
June
6538
7.3
5660
6.3
87
85
Indicated
July
6438
10.6
6179
6.0
96
57
Inferred
August
6713
9.7
6556
10.0
98
104
Measured
September
6719
8.7
7174
7.4
107
85
Indicated
October
6420
10.0
6417
7.9
100
79
Indicated
November
6776
8.9
6913
6.1
102
69
Inferred
December
6445
12.4
6807
6.3
108
51
Inferred
Total
79 465
9.2
77 395
8.4
97
91
Quarterly results
Q1
19 896
9.2
17 603
10.3
88
112
Indicated
Q2
20 057
7.4
19 746
8.8
98
119
Indicated
Q3
19 871
9.7
19 910
7.8
100
81
Indicated
Q4
19 641
10.5
20 137
6.8
103
65
Inferred
Total
79 465
9.2
77 395
8.4
97
91
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TABLE 5
Challenges and solutions related to the nugget effect during the mine value chain.
Stage of mine
value chain
Challenge
Solution
Evaluation
exploration
and Resource
estimation
tComplex geology
tRepresentivity of data spacing to reality
tRepresentivity of samples, subsamples and assays
tDealing with skewed and mixed data populations with extreme values
tDifficult to estimate local Resources without close-spaced drilling and/
or underground development
tExpert personnel, open-minded and dynamic approach

tOre characterisation
tGeological context/good geological control, development of orebody knowledge
tGreater sample density
tLarger samples
tOptimised sampling protocols
tLarger assay charges
tStrict quality assurance / quality control
tAppropriate and geologically controlled estimation approach
Exploitation
mining and
grade control
tAs in the evaluation process

tModerate to high-grade variability
tGood geological control, emphasis on high-quality geological mapping and
tPoor selectivity, difficult to apply a cut-off grade with risk of ore/waste interpretation
misclassification
tStrong collaboration between geologists and engineers leading to geologically
controlled mining
tLiberated, potentially lost gold (exacerbated by coarse gold)
tDynamic approach to mining allowing geology to guide mining even at short notice
tGreater sample density through dedicated grade control drilling
tOptimised grade control sampling protocols and/or alternative approaches
tDifferent stoping methods and/or flexible methods available
tEffective blasting
tSweeping and vamping
Extraction
mineral
processing
tVariable mineralogy
tVariable feed grade
tLiberated gold (exacerbated by coarse gold)

tAppropriate metallurgical sampling and testing program
tAppropriate process techniques and flow sheet
tControlled/blended mill feed
tInformation sharing between metallurgists, production geologists and engineers to
ensure understanding of ore variability
tOptimised mill sampling protocols and correct sampling equipment
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1. FAusIMM, Principal Mine Geologist, CSA Global, PO Box 141, West Perth WA 6872. Email: [email protected]
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REFERENCES
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VDPSOLQJ SURJUDPV IRU XQGHUJURXQG JROG PLQHV LQ Proceedings
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1. FAusIMM, COSMO Stochastic Mine Planning Laboratory, Department of Mining and Materials Engineering, McGill University, 3450 University Street, Montreal Qc H3A 2A7, Canada.
2. MAusIMM(CP), Group Executive, Resource Modelling, Newmont Mining Corporation, 6363 South Fiddlers Green Circle, Greenwood Village Co 80111, USA.
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P-field algorithms
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A
FIG 5 - Pixel plots of a realisation for each conditional simulation method and for both the 195 data set and the 725 data set.
TABLE 1
Three cost/price scenarios are considered, each with a different cut-off grade.
Scenario A
Scenario B
Scenario C
Processing cost ($/t)
8.00
8.64
8.85
Mining cost ($/t)
2.00
2.00
2.00
Recovery (%)
80
95
80
Cut-off grade (g/t)
0.65
0.74
0.86
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480
380
400
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FIG 8 - Summary of outcomes from classifying the Walker Lake deposit sampled on a 6 6 m pattern for a high cut-off relative to the sample mean.
FIG 9 - Revenue earned by each combination of simulation method and economic classification function for each
cut-off grade relative to perfect selection for the 6 6 m 195 data points sampling pattern.
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FIG 13 - Revenue earned by each combination of simulation method and economic classification function for each cut-off
grade relative to perfect selection for the 3 3 m 725 data points sampling pattern.
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TABLE 2
Summary of best- and worst-performing combinations of economic
classification functions and conditional simulation methods.
Spacing / number
of samples
6 m 6 m / 195
3 m 3 m / 725
Cut-off
Best
Worst
Low
SGS Prof +
PFS Prof -
Medium
SGS Prof -
PFS Prof -
High
SIS min loss
PFS Prof +
Low
SIS min loss
PFS Prof +
Medium
SGS min loss
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High
SIS min loss
PFS Prof -
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APPLICATIONS OF GRADE CONTROL USING

ECONOMIC INDICATORS
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Well-performing traditional grade control at a

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FIG 15 - Six blasts and dig-lines from the mines traditional grade control
classification (top); the same blasts and grade control classification based
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comparison of expected gold content from the two grade control
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INTEGRATING GRINDABILITY TO IMPROVE GRADE

CONTROL AND ECONOMIC PERFORMANCE
Ore comminution, grindability, costs, time and
definition of ore in grade control
FIG 14 - Reconciliations (mill grades) of the mines traditional grade control.
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TABLE 3
Example that compares performance between the traditional grade control of a
gold mine with the performance of grade control classification with minimum
loss with sequential indicator simulation over a two-month period.
A two month long comparison
Ounces
Reserves
380 812 at 1.73
21 180
Traditional grade control
385 220 at 1.67
20 682
Minimum loss/simulation (reconciled)
397 446 at 1.65
21 083
Result from minimum loss and sequential indicator simulation:

Additional 12 226 t at 1.02 (400.9 oz) = $102 755 profit before interest
increase or 2.8%.
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1. MAusIMM, previously: Principal Resource Geologist, Gold Fields Australasia Pty Ltd.
2. MAusIMM, previously: Geology Manager, Gold Fields St Ives Gold Mine.
3. Senior Geologist: Resource Development, Gold Fields St Ives Gold Mine, PO Box 359, Kambalda WA 6442. Email: [email protected]
INTRODUCTION
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FIG 2 - Regional geology of the Western Australian North Eastern Goldfields showing some of the major gold deposits.
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FIG 3 - The geology of the St Ives Gold Mine (10 km squares). Note the regional Boulder-Lefroy and Zulieka Shear Zones bounding the area, the folding
of rocks around the south plunging Kambalda Anticline in the main corridor and the proximity of many of the deposits to the Playa Shear Zone.
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FIG 4 - Geological understanding of the Greater Revenge Area has evolved as each structure has been mined. Although
there are many mineralised orientations, the predominant orientation is northsouth striking dipping both east and west.
FIG 5 - Eastwest cross-section of the geology of the Greater Revenge area outlining the mineralised shear zones,
bounded by the Delta Shear zone in the west and Playa Fault in the east (50 m squares).
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FIG 6 - Stratigraphic column of St Ives showing local gold deposit positions schematically.

FIG 7 - Ounces mined per host rock.
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FIG 8 - The W45 lode within the Revenge underground. The central quartz vein and albite-pyrite alteration are
typical of the mineralisation of the Greater Revenge Area.
FIG 9 - Schematic flow diagram of St Ives Lefroy mill process.

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FIG 10 - An example of planned dilution in an open pit ore block design. In this case the red blocks are mineralised blocks below cut-off and
the white areas are unmineralised; however, they must be mined as planned dilution. Yellow, orange and purple blocks are above cut-off.
Factors contributing to increasing reconciliation

trends
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FIG 12 - Almost 20 years of reconciliation (metal call factor) tracking at St Ives.
FIG 13 - New ways of conducting business through new technology and forward thinking has helped to bring the long-term metal call factor closer to target.
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FIG 15 - The metal call factor (MCF) is impacted by the dominant host rock type. The yellow line
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FIG 16 - The effect of mining multiple lodes on the metal call factor (MCF); as the number of sources being mined increases, the MCF decreases.
FIG 17 - The effect of dilution on the metal call factor (MCF); as dilution increases, the MCF increases.
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ABSTRACT
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1. FAusIMM(CP), Technical Director, AMEC, Suite 110, 961 Matley Lane, Reno Nv 89502, USA. Email: [email protected]
* An earlier version of this paper was published in Proceedings 35th APCOM Symposium 2011, pp 47-67 (The Australasian Institute of Mining and Metallurgy: Melbourne).
INTRODUCTION
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721
TABLE 1
Production schedule and cash flow statement for a copper mine.
Input variables
Mining ore
$/t ore
Concentrate recovery
$/t waste
Freight
$/t concentrate
50
Milling
$/t ore
Smelting
$/t concentrate
80
General and administration
$/lb
Mining waste
$/t ore
Refining
Copper price
$/lb
2.5
Payable Cu
Concentrate grade
% Cu
29.00%
Year
-2
-1
90%
0.08
95%
Pounds/t
2204.62
16
10
20
20
20
20
20
20
Production schedule
Ore mined (Mt)
Waste mined (Mt)
20
40
40
40
40
40
40
Ore grade (% Cu)
10
0.60%
0.60%
0.60%
0.60%
0.60%
0.60%
0.60%
Concentrate (Mt)
0.186
0.372
0.372
0.372
0.372
0.372
0.372
Payable Cu (Mt)
0.051
0.103
0.103
0.103
0.103
0.103
0.103
Revenues
282.7
565.5
565.5
565.5
565.5
565.5
565.5
Ore mining
-20
-40
-40
-40
-40
-40
-40
Cash flow statement (M $)
Waste mining
-40
-80
-80
-80
-80
-80
-80
Milling
-50
-100
-100
-100
-100
-100
-100
General and administration
-40
-80
-80
-80
-80
-80
-80
Freight
-9.3
-18.6
-18.6
-18.6
-18.6
-18.6
-18.6
Smelting
-14.9
-29.8
-29.8
-29.8
-29.8
-29.8
-29.8
Refining
-9
-18.1
-18.1
-18.1
-18.1
-18.1
-18.1
Capital expense (CAPEX)
-200
-200
-200
-100
-30
-30
-30
-30
-30
Pre-tax cash flow
-200
-200
-200
-0.5
169
169
169
169
169
199
Cumulative cash flow
-200
-400
-600
-600.5
-431.5
-262.6
-93.6
75.4
Net present value at 8%
554.3
TABLE 2
Sensitivity of cash flow, net present value and payback to changes
in grade (0.60 per cent Cu is base case).
Cu
(%)
Change Cash flow Change Net present Change Payback

(%)
(Year 2, M $)
(%)
value at 8%
(%)
(years)
0.66
10
218.9
30
886.5
60
0.63
193.9
15
720.4
30
0.60
169.0
554.3
0.57
-5
144.0
-15
388.1
-30
0.54
-10
119.1
-30
222.0
-60
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2. The F1, F2, and F3 factors and the terms delivered-to-mill and received-at-mill come
from the Nchanga Open Pits survey department, Chingola, Zambia.
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received-at-mill
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723
TABLE 3
Sources of error and likely F1 factors.
Source of error
F1 (tonnes)
F1 (grade)
F1 (metal)
Comments/remedial action
Mainly related to long-range model
Conservative grade
shells, ore-bearing
lithologies
>1
<1
Usually the tonnage effect is greater than the grade effect, giving a positive F1 (metal). At early stages
(wide-spaced drilling), conservatism may be justified, particularly for Inferred Resources. Projection of grade
shells and favourable lithologies on two sets of orthogonal sections may help. Also, recognition of contacts,
structural, lithological or alteration controls may help in projecting further in sparsely drilled areas. The use
of grade shells may cause distortions in the grade-tonnage curve. These can be mitigated by sample sharing
at boundaries. In the end, more drilling is likely needed to upgrade orebody knowledge will increase ore
tonnage in long-range model.
>1
Over-smoothed
long-range model
<1
>1
This can be a very serious error when processing costs will be high. The long-range model incorporates too
much dilution, which ore control can segregate, with very favourable financial consequences. A stop-gap
solution is to interpolate grade using fewer samples or a high power inverse distance method. This can have
About same
a bad knock-on effect of local conditionally biased estimates. It is better to use deterministic or probabilistic
domaining or a uniform conditioning/multiple indicator kriging method. However, the best solution is to
tighten the drill spacing.
Under-smoothed
long-range model
>1
<1
About same
Domains and grade shells are too selective. Consider some mixing of samples across domain boundaries with
outlier restriction or top-cutting to control overprojection of grades.
>1
Where grade distributions are very skewed, wide-spaced drilling will undersample the high end of the
distribution. In diamond deposits, large stones may be broken. If core recovery is poor, the grade may be
underestimated; examples are chalcocite, molybdenite and gold. Plucking of soft materials may also result in
underestimation of grade.
>1, <1
In dry RC, fines may not be recovered; this may affect grade. For wet RC, fines may be washed out; gold may
be concentrated (placering). Weak high-grade zones may contaminate samples from above. Drilling practices
must be improved with mud conditioning, flocculants in buckets, better splitting, or switching to core drilling
(deep holes).
Grade effects
Reverse circulation
(RC) drilling
About same
About same
>1
>1, <1
Mainly related to short-range model

Effective selective mining unit is larger than plan. Very common for low-grade dump leach or stockpile
categories with a few erratic high-grade values. Better ore-control sampling (such as every blasthole versus
About same
1 in 6) can help. Adding short delineation holes may help. Improve quality of face or blasthole sampling
(increase size of sample taken). Decrease block size.
Sloppy dig-line
layout
>1
<1, >1
Biased sampling
About same
>1
>1
Oversampling of fines in blasthole or grab samples can cause a bias.
Leaving remnants
<1
>1
<1
Purposely conservative final stope design in times of economic stress.
TABLE 4
Sources of error and likely F2 factors.
Source of error
F2 (tonnes)
F2 (grade)
F2 (metal)
Comments/remedial action
Mainly related to short-range model

Biased sampling
About same
<1
<1
Oversampling of fines in blasthole or grab samples can cause a bias.
Truck allocation
Either high/low
>1, <1
>1, <1
>1
<1
About same
Blast heave, unplanned

mixing of ore and waste
About same
<1
<1
Blast ore and waste in opposite directions; separate ore and waste passes, remuck bays; keep waste
out of crusher; use modern dispatch system.
Pulling too fast in block

cave mines
<1
<1
<1
Piping at drawpoints; drawpoints close early due to low grade factors.
Either high/low
No effect
No effect
Belt-scales not calibrated; moisture is guestimated. Calibrate scales every two weeks; obtain weekly
moisture samples; determine seasonal corrections.
No effect
<1, >1
<1, >1
Usually F2 (grade) <1; need better tailings tonnage and grade measurement and samplers.
<1, >1
<1, >1
<1, >1
Mill campaigns may not coincide with oretypes as segregated in pit; better communication can help.
Miscount on trucks delivering to mill, stockpiles.
Mainly related to poor mining practice

Overbreak
Mining beyond dig lines; following colour changes in muck unrelated to ore-control boundaries;
bonus scheme should be based on metal, not tonnes broken.
Mainly related to received-at-mill

Bad tonnage
Bad grade
Multiple products
724
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- # Received at mill = F1 # F2
Delivered-to-mill
Long -range model depletions
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FIG 2 - Blast blocks (black) and blasthole (coloured) grades (per cent Cu).
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FIG 1 - Summary relationships between factors.
Remarks
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TABLE 5
Adjustment factors for Lihir (Parker, 1992a).
Selective mining unit
Size
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F3
3
Volume (m )
Tonnes
Grade
Metal
662
72
0.78
1.18
0.92
664
144
0.82
1.12
0.91
12 5 3
180
0.84
1.09
0.91
996
486
0.87
1.05
0.91
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TABLE 6
Detailed comparison of long-range to short-range models at Antamina Mine.
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Mt
% Cu
% Zn
kt cont Cu
kt cont Zn
66.8
1.49
0.25
993
165
71.1
1.54
0.23
1096
164
Reconciliation in 2003
1.06
1.04
0.93
1.10
0.99
Blast blocks
32.5
1.59
0.25
517
81
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Ore control
polygons
32.3
1.67
0.22
538
72
F1" factors
0.99
1.05
0.89
1.04
0.89
Copper-only ores
2001 to 2004
Long-term modela
Blast blocks
F1' factors
2003 to 2004c
Copper-zinc-only ores
TABLE 7
Antamina Mine reconciliation between long-range and short-range models
(Quarters 1 - 3, 2003).
2001 to 2004
Long-term modela
46.7
0.98
2.94
457
Mt
% Cu
% Zn
kt cont Cu
kt cont Zn
1375
Copper-only ores
6.39
1.41
0.16
90.1
10.2
Blast blocks
55.4
0.96
2.66
532
1474
Long-range model
F1' factors
1.19
0.98
0.90
1.16
1.07
Short-range model
8.41
1.73
0.16
145.5
13.5
F1 factors
1.32
1.23
1.00
1.61
1.32
2003 to 2004c
Blast blocks
22.7
1.01
2.83
229
642
Copper-zinc ores
Ore control
polygons
28.8
1.02
3.17
294
911
Long-range model
15.6
1.11
2.56
173.2
399.4
Short-range model
13.5
0.95
3.06
128.3
413.1
F1" factor
1.27
F1 factors
0.87
0.86
1.20
0.74
1.03
1.01
1.12
1.28
1.42
a. Long-range model built in 2005 after infill drilling program.
a. Zinc grades and factors irrelevant for copper-only ores.
b. Blasthole model reblocked to 20 20 15 m blocks.
Note: cont contained.
c. Comparison of blast blocks to ore control polygons for 2001 - 2002 is not shown because
oxidised material was sent to waste based on pit mapping; this information was not preserved
in blast blocks.
Notes: zinc grades and factors irrelevant for copper-only ores. Cont contained.
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CASE STUDY FOR ANTAMINA MINE

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FIG 3 - Antamina Mine, 2003: long-range Cu model (left) and short-range model (right). Red colour indicates >2 per cent Cu, localised in breccia zones. Blocks
(left) are 20 20 m and 5 5 m (right). The red perimeters superimposed on the long-range model enclose short-range model blocks above two per cent Cu.
FIG 4 - Antamina Mine, 2003: long-range Zn model (left) and short-range model (right). Red and magenta colours indicate >2.5 per cent Zn, localised in
structure zones. Blocks (left) are 20 20 m and 5 5 m (right). The red perimeters superimposed on the long-range model enclose short-range model
blocks above two per cent Zn.
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FIG 5 - Zinc grade-zones for three grids. Interpreted from experimental grids of blastholes: high-grade zinc over 2.5 per cent is red; medium-grade zinc
(0.25 to 2.5 per cent) is blue. (A) 75 75 m spacing (high-grade is under-represented), (B) 50 50 m spacing (high-grade is still under-represented),
(C) 25 25 m spacing (high-grade is fairly well represented), (D) ground-truth based on blastholes (7 7 m spacing).
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TABLE 8
Antamina Mine F1 factor reconciliation between test long-range and
short-range models (60 Mt).
Drill spacing
F1 (t)
TABLE 9
Antamina Mine reconciliation for 2003 to 2004.
Mt
% Cu
% Zn
kt cont Cu
kt cont Zn
Long-range model
depletions
30.5
1.51
0.25
460.6
76.3
F1 (% Cu)
F1 (cont Cu)
Copper-only ores
1% copper cut-off grade applied

75 75 m spacing
0.97
1.15
1.11
50 50 m spacing
0.93
1.01
0.93
1.67
0.22
539.4
71.1
0.88
1.02
0.90
Short-range
model depletions
32.3
50 25 m spacing
25 25 m spacing
0.92
1.01
0.93
Received-at-mill
30.1
1.52
0.25
457.5
75.3
2.5% copper cut-off grade applied
F1 factors
1.06
1.11
0.88
1.17
0.93
75 75 m spacing
2.04
1.14
2.33
F2 factors
0.93
0.91
1.14
0.85
1.06
50 50 m spacing
1.11
0.96
1.06
F3 factors
0.99
1.01
1.00
0.99
0.99
50 25 m spacing
1.05
0.98
1.03
Copper-zinc ores
25 25 m spacing
1.03
1.02
1.04
Long-range model
depletions
23.9
0.96
3.04
229.4
726.6
Drill spacing
F1 (t)
F1 (% Zn)
F1 (cont Zn)
Short-range
model depletions
27.1
1.07
3.21
290.0
869.9
75 75 m spacing
1.52
1.35
2.04
Received-at-mill
27.6
1.01
2.61
278.8
720.4
50 50 m spacing
1.35
1.20
1.64
F1 factors
1.13
1.11
1.06
1.26
1.20
50 25 m spacing
1.43
1.06
1.52
F2 factors
1.02
0.94
0.81
0.96
0.83
25 25 m spacing
1.35
0.92
1.25
F3 factors
1.15
1.05
0.86
1.21
0.99
75 75 m spacing
3.70
0.69
2.56
50 50 m spacing
2.22
0.79
1.75
50 25 m spacing
1.37
1.00
1.37
25 25 m spacing
1.18
0.88
1.04
1% zinc cut-off grade applied
2.5% zinc cut-off grade applied
Notes: Zinc grades and factors irrelevant for copper-only ores. Cont contained.
Note: cont contained.
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CASE STUDY FOR A HYPOTHETICAL GOLD DEPOSIT

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FIG 6 - Histograms for composites and resource model.
FIG 7 - Histograms for selective mining units.

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TABLE 10
Tonnages, grades and F1 factors.
Results at 1.5 g/t cut-off grade (assume 100 Mt ore + waste deposit)
%t
Mt
Grade
(g/t)
Contained
(Moz Au)
Composites
26.2%
26.2
4.062
3.421
SMU1 = 5 10 6 m
31.1%
31.1
3.229
3.228
SMU2 = 10 10 6 m
31.5%
31.5
3.167
3.207
SMU3 = 15 15 10 m
33.0%
33.0
2.959
3.139
SMU4 = 20 20 15 m
34.7%
34.7
2.754
3.072
Resource model
37.1%
37.1
2.487
2.966
F1 factors
Tonnage
Grade
(g/t)
Contained
(Moz Au)
Composites
0.706
1.633
1.153
SMU1 = 5 10 6 m
0.838
1.298
1.088
SMU2 = 10 10 6 m
0.849
1.273
1.081
SMU3 = 15 15 10 m
0.889
1.190
1.058
SMU4 = 20 20 15 m
0.935
1.107
1.036
Resource model
1.000
1.000
1.000
TABLE 11
Annual cash flows for selectivity scenarios (base case shown in yellow).
Input variables
SMU1
SMU2
SMU3
SMU4
Resource
model
Mining costs ($/t)
2.00
1.80
1.60
1.40
1.80
Treatment costs ($/t)
25.00
25.00
25.00
25.00
25.00
G+A costs ($/t)
3.50
3.50
3.50
3.50
3.50
Sustaining CAPEX ($/t)
0.30
0.27
0.24
0.21
0.27
Metallurgical recovery (%)
88
88
88
88
88
1250
1250
1250
1250
1250
3.47
3.71
Gold price ($/oz)
Annual pre-tax cash flow (M $) assumes 10 Mt/a ore + waste

Ore mined (Mt)
3.11
3.15
3.3
Ore grade (g/t)
3.23
3.17
2.96
2.75
2.49
Contained (Moz)
0.323
0.321
0.314
0.307
0.297
Recovery (Moz)
0.284
0.282
0.276
0.270
0.261
Revenues (M $)
355.1
352.8
345.3
338.0
326.3
Mining (M $)
-20.0
-18.0
-16.0
-14.0
-18.0
Treatment (M $)
-77.8
-78.8
-82.5
-86.8
-92.8
G+A (M $)
-35.0
-35.0
-35.0
-35.0
-35.0
Sustaining CAPEX (M $)
-3.0
-2.7
-2.4
-2.1
-2.7
Cash flow (M $)
219.4
218.3
209.4
200.1
177.8
G+A: general and administration; CAPEX: capital expense.
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CASE STUDY FOR A HYPOTHETICAL IRON ORE

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FIG 8 - Grade-tonnage curves.

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FIG 9 - Ore loss and contact dilution (after Stone, 1986).

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FIG 10 - Contact conventions. Assumptions: contact strikes 0 with a dip

of 45 (+ dip to east; - dip to west). Panel will be 200 m wide 15 m high.
Length along strike = 10 m (not relevant here). The panel width is wide
enough so that the contact enters the panel on the south side and
exits the panel on the north side.
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TABLE 12
Simulator output.
TOLMIX
FIG 11 - Mixing zones. This figure shows that the panel is discretised into
points. Each point is ore or waste. There can be a mixing zone near the
contact (points are randomly ore or waste with 50 per cent probability).
This can represent small-scale fluctuations in the contact surface or mixing
during blasting.
If the shovel stops short (east) of the contact, the

distance is positive.
min dilution, max ore loss.
If the shovel stops beyond (west) of the contact, the
distance is negative.
max dilution, min ore loss.
FIG 12 - Mining conventions. This figure shows the mining approach and
shows the broad consequences of face position in relation to ore loss/dilution.
Mining assumptions: the shovel is digging westerly; face angle of 70, thus the
face strikes 0 and dips 70 east; the position at which the shovel switches from
loading ore to waste (face position) can be specified (at mid bench).
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CASE STUDY FOR THE GREENS CREEK MINE

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Run
Mixing
(TOLMIX)
Mine face
position
Dilution
(width m)
Ore loss
(width m)
-5
4.94
0.00
-5
5.00
0.03
-5
5.37
0.27
-5
5.62
0.58
-5
6.10
1.06
-2.5
2.58
0.17
-2.5
2.89
0.46
-2.5
3.53
0.96
-2.5
4.13
1.62
10
-2.5
4.74
2.24
11
0.91
0.97
12
1.30
1.33
13
2.23
2.13
14
2.83
2.80
15
3.52
3.49
16
2.5
0.17
2.76
17
2.5
0.40
2.96
18
2.5
1.01
3.44
19
2.5
1.55
4.04
20
2.5
2.25
4.76
21
0.00
5.06
22
0.03
5.06
23
0.27
5.17
24
0.56
5.52
25
1.11
6.08
Mt
% Fe
Mt cont Fe
10.00
40.00
4.00
TABLE 13
Production statistics.
Short-term model depletion

Received-at-mill
9.75
38.00
3.71
F2 factor
0.975
0.950
0.926
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733
734
-5
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
40%
Ore
grade
(% Fe)
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
3.6
Density
of ore
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
Diluted
grade
(% Fe)
Note: the case that most corresponds to production statistics is shaded (see Table 13).
2.5
2.5
2.5
2.5
2.5
-2.5
-2.5
-2.5
-2.5
-2.5
-5
-5
-5
-5
Mine
face
position
Mixing
Run
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
2.6
Density
of waste
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
Short-term
reserve
(depl Mt)
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
40
Horiz
width
ore (m)
1.11
0.56
0.27
0.03
0.00
2.25
1.55
1.01
0.40
0.17
3.52
2.83
2.23
1.30
0.91
4.74
4.13
3.53
2.89
2.58
6.10
5.62
5.37
5.00
4.94
Dilution
(width)
6.08
5.52
5.17
5.06
5.06
4.76
4.04
3.44
2.96
2.76
3.49
2.80
2.13
1.33
0.97
2.24
1.62
0.96
0.46
0.17
1.06
0.58
0.27
0.03
0.00
Ore loss
(width)
From simulator
35.03
35.04
35.10
34.97
34.94
37.49
37.51
37.57
37.44
37.41
40.03
40.03
40.10
39.97
39.94
42.50
42.51
42.57
42.43
42.41
45.04
45.04
45.10
44.97
44.94
Width
(m)
TABLE 14
Calculation of F2 factors for simulation runs.
39.31
39.65
39.83
39.98
40.00
38.68
39.09
39.41
39.77
39.90
38.05
38.44
38.78
39.29
39.50
37.51
37.84
38.16
38.50
38.66
36.95
37.20
37.33
37.51
37.50
Grade
(% Fe)
3.568
3.584
3.592
3.599
3.600
3.540
3.559
3.573
3.589
3.595
3.512
3.529
3.544
3.567
3.577
3.488
3.503
3.517
3.532
3.539
3.465
3.475
3.481
3.489
3.490
Density
(t/m3)
Run-of-mine
8.68
8.72
8.76
8.74
8.74
9.22
9.27
9.32
9.33
9.34
9.76
9.81
9.87
9.90
9.92
10.30
10.34
10.40
10.41
10.42
10.84
10.87
10.90
10.90
10.89
Mt
0.868
0.872
0.876
0.874
0.874
0.922
0.927
0.932
0.933
0.934
0.976
0.981
0.987
0.990
0.992
1.030
1.034
1.040
1.041
1.042
1.084
1.087
1.090
1.090
1.089
Tonnes
0.983
0.991
0.996
1.000
1.000
0.967
0.977
0.985
0.994
0.998
0.951
0.961
0.969
0.982
0.988
0.938
0.946
0.954
0.962
0.966
0.924
0.930
0.933
0.938
0.939
Grade
F2 factors
0.853
0.865
0.872
0.874
0.874
0.891
0.906
0.919
0.928
0.932
0.929
0.943
0.957
0.973
0.980
0.965
0.978
0.992
1.002
1.007
1.001
1.011
1.017
1.022
1.022
Metal
1138
1157
1169
1174
1174
1157
1181
1201
1218
1225
1173
1196
1217
1245
1257
1188
1208
1229
1246
1256
1200
1215
1224
1233
1235
Net present
value (M $)
TABLE 15
Net present values presented as a case matrix.
Mixing
Mining face position

-5
-2.5
2.5
1235
1256
1257
1225
1174
1233
1246
1245
1218
1174
1224
1229
1217
1201
1169
1215
1208
1196
1181
1157
1200
1188
1173
1157
1138
Notes:
The case that most responds to production statistics is shown in yellow.
The optimal case for a given mixing zone half width (TOLMIX) is shown in orange.
The overall optimum case has mixing = 1, mining face position = 0.
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FIG 13 - Grade control versus block model for silver.

Note: opt = Troy oz/st; 1 opt = 34.29 g/t.
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3. For another example see Table 3.14 in Koch and Link (1970), where the skewed
distribution of the sample mean is shown for samples from the Homestake Mine.
TABLE 16
Reconciliation for the Southwest Zone (1997).
Block model depletions and production statistics
Tonnes
Factors for tonnage and grade
Au
g/t
Ag
g/t
Pb
%
Zn
%
NSR
$/t
Factor
Tonnes
F1
Au
g/t
Ag
g/t
Pb
%
Factors for contained metal and NSR
Zn
%
NSR
$/t
Au
Ag
Pb
Zb
NSR
0.97
0.89 0.84 0.98 0.98
0.88
0.87
0.82
0.95
0.96
0.85
F2
1.14
0.96 0.91 0.86 0.85
0.92
1.10
1.04
0.99
0.98
1.04
Reconciliation for 1997

Block model
389 416
7.51
1328
5.55
11.13
252
Grade control,
no cut
378 355
6.72
1116
5.43
10.94
222
Received-at-mill
431 749
6.48
1019
4.69
9.35
203
F3
1.11
0.86 0.77 0.85 0.84
0.80
0.96
0.85
0.94
0.93
0.89
F1
0.93
1.10 0.93 1.04 1.04
0.99
1.03
0.87
0.97
0.97
0.93
Reconciliation for completed levels

Block model
115 836
6.21
1233
5.29
10.54
229
Grade control,
no cut
108 227
6.86
1153
5.50
10.94
227
F2
1.14
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0.92
1.11
1.04
0.99
0.98
1.05
Received-at-mill
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1052
4.75
9.35
208
F3
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0.91
1.14
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0.96
0.95
0.97
F1
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0.84
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F2
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0.91
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0.98
1.04
F3
1.13
0.80 0.73 0.83 0.82
0.76
0.90
0.83
0.93
0.93
0.86
Reconciliation for uncompleted levels

Block model
273 580
8.06
1368.34
5.66
11.38
262
Grade control,
no cut
270 127
6.65
1101.26
5.41
10.94
219
Received-at-mill
308 248
6.45
1004.91
4.67
9.35
201
Notes: F2 factor cannot be separately determined for completed and uncompleted levels.
NSR net smelter return/revenue.
735
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FIG 14 - Histogram for grade-control silver values, portion of Southwest Zone.

Note: opt = Troy oz/st; 1 opt = 34.29 g/t.
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FIG 15 - Cumulative silver grade versus per cent completion for five random
sorts of the grade control distribution. Note: opt = Troy oz/st; 1 opt = 34.29 g/t.
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FIG 16 - Monthly and cumulative average grades for silver, 640 and 653 levels. Note: opt = Troy oz/st; 1 opt = 34.29 g/t.
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FIG 17 - Relative difference (grade control - block model) versus percentage completion for silver.
CONCLUSIONS
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REFERENCES
-RXUQHO $ * DQG +XLMEUHJWV & - Mining Geostatistics S
$FDGHPLF3UHVV
.RFK*6DQG/LQN5)Statistical Analysis of Geological Data

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0HOERXUQH
0RUULVRQ 5 ' An Introduction to Metal Balancing and
ReconciliationS-XOLXV.UXWWVFKQLWW0LQHUDO5HVHDUFK&HQWUH
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Mining Reconciliation
An Overview of Data Collection
Points and Data Analysis
R Hargreaves1,2 and C Morley3
ABSTRACT
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1. MAusIMM(CP), Principal Consultant, Snowden, 87 Colin Street, West Perth WA 6005. Email: [email protected]
2. R Hargreaves has published previous work (cited in this paper) under the name R Riske.
INTRODUCTION
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DEFINITION OF RECONCILIATION AND VARIATION
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Mining Reconciliation An Overview of Data Collection Points and Data Analysis|R Hargreaves and C Morley
TABLE 1
Examples of variables that affect the reliability of reconciliation
results (after Pitard, 2001).
TABLE 2
The method of reporting the tonnes and grade from the Resource model is
dependent on the actual mining method.
Variables affecting reliability of reconciliation results
Reporting tonnes and grade from the resource

model based on mining method
Geological model causes
Mining causes
True in situ nugget effect
Estimation of tonnes
Mining method
Sampling and subsampling errors
Survey inaccuracies
Open pit
Analytical errors
Displacement of mineralisation
boundaries upon blasting dilution
Deplete and report the resource model between two month end
pit surveys.
Underground
development
Survey measurements taken either on a regular interval

(weekly, monthly, etc) or on the completion of the development
are used to deplete and report the resource model.
Underground
production
room and pillar
The production areas can be surveyed and the surveys used to

deplete the resource model.
Underground
production
stoping
Generally more hands off and not so easy to survey. A cavity

measurement system (CMS) can be used but fired or trucked
tonnes may have to be relied on until the stope is complete.
Reconciliation of the resource model is usually completed
on a final stope basis. In some mines, with larger stopes, it is
common for CMS surveys to be carried out after each set of rings
are fired.
Underground
production
caving
In a caving situation there is generally no possibility of survey.

In these instances fired or trucked tonnes can be used with
a resource grade calculated from the designed mining areas.
When using fired or trucked tonnes, the rule is to subtract
the surveyed development tonnes from this, to give the
production tonnage. It is important not to double account for
the development.
Definition of ore boundaries

Estimation errors
Truck dispatch inaccuracies
Excessive rejection of outliers
Loss of fines
Estimation methodology issues
Mining model parallel to cross

mineralisation in open pit
Ore density assumptions

Grade control causes
Mill and flotation plant causes
In situ nugget effect
Retention of metal within the mill
Sampling and subsampling errors
Analytical inaccuracy
Analytical errors
Process cycles either unknown or

misunderstood
Blastholes parallel to mineralisation
Calibration of weightometers and

flowmeters
Averaging or kriging methodology issues Poor laboratory subsampling

Ore grade contouring
Reconciliation calculated over too short

a time frame
Survey inaccuracies
Reporting method
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Resource model causes of poor reconciliation

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TABLE 3
Areas to be considered when reporting the Resource model.
Reporting on tonnes and grade from the resource
model based on specific area
Specific area
Comment
Backfill and
in-pit stocks
Be aware of any areas that have been backfilled to ensure they are
accounted as mined in the reporting.
Surveys
Always review the end of month surveys to ensure that all mined
areas have been surveyed, particularly when working on multiple
benches. There can be problems with merging old and new survey
information.
Spatial
depletion
issues
There are times when the resource model is not coincident with
the actual resource. This is typically in underground situations
where the ore is not exactly where expected and hence the
surveys cannot be used to deplete the resource model, as the
location of the ore in the model is wrong, but it is still important to
reconcile the estimation of grade and tonnes within the modelled
zone. In these instances a cookie-cut approach needs to be used
to deplete the ore from the resource. If mining has not adjusted
to factor in the actual location of the ore, and so the full width of
the orebody has not been mined or additional dilution has been
mined, this must also be recognised and reported.
Recoverable
resources
At the resource stage, recoverable models are sometimes used

whereby the tonnes and grade above the mining cut-off are
estimated into large panels, but the location of the ore within
the panel is unknown. This causes problems when only part of a
panel is mined during the month. In these instances it is optimal
to reconcile on a complete panels basis rather than on a set time
period (such as monthly).
Stoping
Often stopes are not easily surveyed until complete. The

recommendation is to only reconcile stopes that are fully
completed each month against the resource model. By using this
method, reconciliation can be carried out at the completion of
each stope and the completed stopes simply reported at month
end.
Dilution
The way dilution is included in resource models needs to be

understood and taken into account during reconciliation as it can
change the meaning of the numbers. If internal dilution has been
modelled, which is normal practice then this will not pose an
issue to reconciliation. However, if dilution has been applied as a
factor post resource modelling (not a recommended practice, but
one that does occur) this will need to be taken into consideration
during reconciliation.
Severe top cutting

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Mining
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TABLE 4
The method of reporting the mined tonnes and grade is
dependent on external factors.
Poor geological and structural knowledge

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Incorrect ore boundary
Reporting tonnes and grade from mining production

External
factor
Consideration
Dispatch
systems
An automated dispatch system with GPS tracking, or in an

underground application waypoint data, is the ideal as it minimises
human error associated with collecting and data entry of tuck tallies.
Any system should be routinely monitored and reviewed to check its
accuracy as it is very common for drivers and/or dispatchers to get
source and destination information wrong. Ideally any error picked
up in the dispatch data should be corrected in the dispatch system.
Tonnes and grade delivered to the mill are typically the mined
material delivered to the primary crusher.
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Open pit block layout inaccuracies

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Database errors or inadequate data storage

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Frequency of Surveys should be undertaken on a monthly basis as well as at the

survey
end of each bench or stope. Survey tonnes should be reconciled
against dispatch tonnes as a validation of the truck factors being used
to convert truck counts to tonnes.
Intermediate Orepasses where intermediate material resides underground are
stockpiles/
generally impossible to measure. These orepasses and any open pit
orepasses
intermediate stockpiles need to be taken into consideration during
reconciliation as they introduce a temporal lag into the movement of
the material. If this lag is not considered in the reconciliation process
then the results will not be comparing like with like (or apples with
apples).
Moisture
Moisture is a key issue in most mines and is often not measured

accurately (or not measured at all!). In tropical or high rainfall
environments, the change in tonnes due to moisture from in situ to
mined material can be significant. It is not uncommon for moisture
to be ignored during the planning process, which makes it impossible
to move the tonnes planned. Moisture levels need to be regularly
measured and taken into account during reconciliation. A lot of
reconciliation errors are due to insufficient consideration of moisture.
Ore ramps
Some pits build ramps using in-pit ore. Often this is not considered
in reconciliation or is ignored. Such ramps should be considered
as stockpiles if they are to be reclaimed at a later date or the ore
written off if the practice is to send this material to waste when it is
eventually mined.
Human errors
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Open pit mining causes of poor reconciliation

Blasting
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Mining direction
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Underground voids
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Dilution of ore
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Survey errors
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Material tracking
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Underground mining causes of poor reconciliation

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Sublevel or block caving

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Development reconciliation
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Stoping reconciliation
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Inclusion of fill
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Sampling errors
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Stockpiles
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TABLE 5
Reporting on stockpiles may be dependent on external factors.
Reporting tonnes and grade on stockpiles
External factor
Stockpile
management
systems
Processing plant
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TABLE 6
Reporting on plant tonnes and grade may be dependent on external factors.
Reporting tonnes and grade from the plant
External factor
Consideration
Weightometers
Are the weightometers being calibrated on a regular

interval? What are the calibration methodologies? Are the
weightometers on an incline/decline, which may impact their
accuracy? Confidence in the weightometers is paramount to
ensuring the balance you are using in reporting actual numbers
is reliable as a data source.
Sampling
How and where is the sampling carried out and what is the
accuracy and precision of the sampling method? Plants are
like a chemical equation the sum of the inputs must equal
the sum of the outputs. Therefore, it is important to capture
samples and volumes/density of all plant outputs including
oversize material, tailings and product.
Consideration
On any mine a stockpiling strategy should be in place. This
document should clearly outline who is in control of the
stockpiles; where they are located; how often they are zeroed;
how frequently they are turned over, and how the movement
is monitored.
Stockpile in the mine and located prior to the primary
crusher are generally considered to be controlled by the mine
production team, while coarse ore stockpiles after the crusher
are generally considered to be part of the processing plant.
Surveying
It is necessary to consider the frequency of surveys. Stockpile

floors should always be surveyed when they are empty to
ensure that the levels are maintained and the floor has not been
mined (which would affect reconciliation). Compaction needs to
be taken into account on large stockpiles when deriving tonnes
from survey volumes.
Systems
interaction
Are the mine and plant databases integrated or linked for

ease and flexibility of reporting? Typically the plant has an
independent database and often mine figures are presented to
the mill in spread sheet format. The plant is a rich source of data
but it is important to determine the quality of the data and how
accurate the data sources are.
Grade modelling
It is important to understand how the stockpile is being formed

in order to know how to best model the grade. There is no
perfect method and any stockpiling will always introduce errors.
Best practice is to keep stockpiles small and turn them over
(that is zero them) on a frequent basis. This will reduce metal
build-up in the stockpile accounting.
Stockpiles
How is the movement on and off any stockpiles after the crusher
(cone or coarse ore stockpile) modelled and monitored? Are
there areas in the plant where material is introduced into the
circuit, or in the case of mill clean-ups re-introduced, which
might result in double counting of some tonnes? Often these
in-plant stocks are insufficiently surveyed or not surveyed at all.
Stockpile management causes of poor reconciliation

Volume estimation
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Stockpile grade estimation

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Processing plant causes of poor reconciliation

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Process controls
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TABLE 7
Standardised reconciliation nomenclature (Fouet et al, 2009).
Standardised reconciliation nomenclature
Section within mining
process
Standardised reconciliation nomenclature

Resource model to reserve model
Geological model reconciliation
Resource model to grade control (mining) model

Reserve model to grade control (mining) model
Resource model to mining production
Resource model to plant feed
Resource model to plant production
Geological model versus actuals

reconciliation
Reserve model to mining production
FIG 4 - The relationship between the three elements of reconciliation.
Reserve model to plant feed

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Grade control (mining) model to mining
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REFERENCES
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A Strategy to Minimise Ore Grade

Reconciliation Problems between
the Mine and the Mill*
F F Pitard1
ABSTRACT
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1. President, Francis Pitard Sampling Consultants, 14800 Tejon Street, Broomfield Co 80023, USA. Email: [email protected]
* This paper was previously published in the first edition of Mineral Resource and Ore Reserve Estimation The AusIMM Guide to Good Practice (2001).
INTRODUCTION
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Point 1: create a plan to capitalise on existing data

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Point 2: use ISO standards as a structural framework

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Point 3: do not misuse ISO standards

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Point 4: integrate good sampling, statistical process

control, geostatistics and total quality management
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Point 5: implement a philosophy of equiprobabilistic

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Point 6: do not confuse quantity of work with real

productivity
FIG 2 - The three-legged table.

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Point 7: establish a realistic wish list for every process

controlling parameter
FIG 4 - Illustration of an invisible cost generated by the random variability affecting

the tonnes per hour processed through a semi-autogenous grinding mill.
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Point 9: beware of economic units within the same

company
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Point 10: establish a customer and continuous process

feedback system
FIG 3 - A wish list for the optimisation of a semi-autogenous grinding mill.
Point 8: work smarter, not harder

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FIG 5 - Random variability (ie standard deviation of the sampling

fundamental error generated by the selected sample weight) affecting ore
grade classification around an economical gold grade cut-off.
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Point 11: make a distinction between a non-random

process fluctuation and a random sampling/
measurement fluctuation
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Point 12: constantly minimise invisible cost

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FIG 6 - Confusion between a non-random process fluctuation and a random

sampling/measurement fluctuation.
Point 13: beware of correcting factors

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FIG 7 - Money loss based on visible cost alone.
Point 14: implement a creative thinking cycle

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A Strategy to Minimise Ore Grade Reconciliation Problems between the Mine and the Mill|F F Pitard
FIG 10 - Setting priorities.
Mining causes
FIG 8 - Money loss based on visible and invisible cost.
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FIG 9 - Implementation of a friendly, creative thinking cycle.
Point 15: a mine/mill reconciliation problem nearly

always has multiple causes
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Point 16: a good understanding of variability must

improve metal recovery
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Point 17: use pragmatic statistical improvement tools

based on graphic observation
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FIG 11 - Example of underground duplicate channel sampling in a gold mine.

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Point 18: use concrete graphic tools to quantify

invisible cost
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FIG 12 - Example of 2D distribution of predicted copper grades versus actual

copper grades in mining blocks, with a total sampling/measurement precision
error about 40 per cent. (A) Waste misclassified as ore, (B) ore misclassified as
waste, (C) waste properly classified as waste, (D) ore properly classified as ore.
REFERENCES
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Guide to Creating a Mine Site

Reconciliation Code of Practice
C Morley1
ABSTRACT
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truly understand our mining processes. We must map out

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759
TABLE 1
Standardised reconciliation nomenclature (modified after Fouet et al, 2009).
Section within mining
process
Standardised reconciliation
relationship name
Resource model to Reserve model
Geological model reconciliation
Resource model to grade control (mining) model

Reserve model to grade control (mining) model
Resource model to mining production
Resource model to plant feed
Resource model to plant production
Geological model verses actuals

reconciliation
Reserve (LOM plan) to mining production

Reserve (LOM plan) to plant feed
Therefore reconciliation of the resource model against grade

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Rail and shipping reconciliation
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TABLE 2
Example of a template for summarising key data sources used in mining reconciliation process (after Morley and Thompson, 2006; Morley, 2008).
Data name
Source and type
Time frame
QA/QC
Grade control
Grade control
Model tonnes
Material type
Grades
Daily or on an as
designed basis
Version tracking,
peer review and
sign off
Calculation of contained metal
Data is needed on an ore block by ore block

basis
Short-term mine
plan
Mine planning
volume/tonnes
Material type
Daily/weekly/
monthly
Version tracking,
peer review and
sign off
Application of specific gravity to calculate

tonnes from volumes
May also contain grade information
Budget/forecast
Mine planning
volume/tonnes
Material type
Grade
Monthly
Version tracking,
peer review and
sign off

tonnes from volumes
Operations dispatch
system source
Destination
Material type
Truck counts
Tonnes
Shift summaries
Valid source and

destinations, truck
volume validation
Application of truck factor to calculate

tonnes from truck counts
Tonnes are collected via truck load cells or

truck counts
Survey volume
Weekly/monthly
(end of month
process)
Validation against
dispatch results,
peer review and
sign off

tonnes from volumes
Survey may calculate tonnes using

volume density
Surveys should include both ROM fingers and
medium-grade stockpiles
Survey could include waste stockpiles as well
Crusher tonnes
Plant tonnes
Shift and monthly

summaries
Weightometer
calibration
procedures
Monthly metallurgical balance process

may result in changes to previously
reported results
Weightometer measurement on crushed

material
Head grade
Mill grades
Shift and monthly

summaries
Met balance
Monthly metallurgical balance process

may result in changes to previously
reported results
Dispatch
Stockpile surveys
760
Transformations
Comment
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Methodologies and calculations
TABLE 3
Example of a template for summarising the ranges of error that are associated with some data sources (after Morley, 2008).
Source of error
Normal
range
Common
range
Comments
Grade control model

estimation methodology
accuracy
10%b
50%b
Can vary significantly depending on the understanding of

geology and estimation methodology chosen.
Dispatch errors
incorrect source and
destination
<5 incorrectly 1 to 10 errors Electronic dispatch systems greatly enhance accuracy

per dayb
but only with constant monitoring and reconciliation.
coded results
per weekb
Strategies to reduce errors

Ongoing reconciliation and review of sampling quality,
density and estimation methodologies.
Shift by shift review by operations and sign off.
Errors corrected by dispatchers in the dispatch system.
Truck factors
15%b
Between 15
and 30%b
Often empirical numbers that have not been validated for

a long period of time.
Monthly compilation of dispatch results against

weightometer or survey results.
Truck load cells
5%c
20%c
When truck load cells fail it is not uncommon for that truck
to be kept in production resulting in truck factors being
used for tonnage estimates.
Regular maintenance and calibration schedules.
Specific gravity
estimations (including
in situ density estimates)
5%a
10%b
Specific gravity is often an empirical number used by

mining, geology, survey and dispatch to convert volumes
to tonnes.
Routine charting of survey versus dispatch

versus weightometer data.
Annual specific gravity laboratory testing.
Swell factors (stockpiles)
5%a
10%b
Includes factors used to convert in situ density to a

stockpiled density. On large stockpiles this can also
include some allowance for compaction of material within
the stockpile.
Use of stockpile density measurement devices for

example as described by Treasure (2006).
Loader bucket factors
15%b
Between 15
and 30%b
Often empirical numbers that have not been validated for

a long period of time.
Monthly compilation of dispatch results against

weightometer results.
Weightometer
measurements
<5%c
20%c
Incorrectly positioned, poorly maintained and infrequently

calibrated weightometers will give spurious tonnage
measurements.
Regular maintenance and calibration schedules will

result in weightometers delivering results within their
design error tolerances.
Head grade sampling

errors
10%b
20% up to
200%b
Auto-samplers are notoriously difficult to design, install

and maintain. Plants with high volume of throughput
make it almost impossible to maintain a sampling regime
that is statistically appropriate.
Appropriate installation and regular

maintenance of an auto-sampler.
Reconciliation to metal produced
rather than head grade.
Survey volume errors
10%b
10%b
Recent trends to use global positioning systems (GPS) for

survey pickup can result in lower precision of the surface
volume calculation.
Use of surface pickup by theodolite.

Routine areal flyovers to provide calibration for survey
surface pick-ups.
a. Treasure (2006); b. empirical industry experience; c. Pan et al (2003).
761
TABLE 4
Example of a template for documenting the methodology and calculations
carried out to derive the various reconciliation results for any given
reconciliation relationship (modified after Fouet et al, 2009).
Name
Data required Mine production: dispatch data for material leaving the pit corrected
using survey data.
Supervisory control and data acquisition (SCADA) systems for the
plant production data and laboratory information management
system (LIMS) sampling results.
Frequency
Monthly.
Calculation
Tonnes = plant feed / mining production.

Grade = plant feed sampled grades / mining production grades
(estimated or sampled).
Purpose
Provides a measure of the effectiveness of estimates of actual

mining from direct feed ore sources (pit and/or underground) plus
stockpiles, to material.
Comments
Temporal reconciliation.
This factor will highlight issues with truck factors or weightometer
calibrations.
Stockpiling effects reconciliation due to the impact on the material
that ultimately reaches the mill. Reclaimed material must be
included with direct tip material when reconciling material delivered
to the mill verses what the mill received.
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FIG 5 - A general outline or helicopter view example of a final stope reconciliation from the George Fisher Mine (Mascini, 2006).
(Note: the intention is not that the detail should be legible on this diagram. The authors intent is to illustrate the general layout described in the text.)
762
TABLE 5
Types of reports being produced by the reconciliation system
at Telfer (Riske et al, 2007).
Report type
Description
Reconciliation
Reserve (plan)/grade control/mill (actual)

Material type
Pit depletion by:
Date range
Destination
Material movement
Grade control
Tonnage comparisons by:
Trucking
Crushing
Crusher feed by:

Stockpile tracking
Engineering
Direct feed
Rehandle
Tonnes and grade available

Tonnes by equipment
Production by stage (performance against plan)
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Chapter 9 | Classif ication and Reporting

Overview Classification and Reporting
J Coombes, G Fahey and P T Stoker
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Issues in Capital Raisings and Disclosure
B Dodd
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Review of 2012 JORC Code and Comparison with National Instrument 43-101
P R Stephenson and P T Stoker
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Estimating and Reporting Potential Mineralisation at BHP Billiton The Unconstrained View
M Mullins, P Hodkiewicz,
J McCluskey, C Carey and J Terry
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Mineral Resource Classification Its Time to Shoot the Spotted Dog!
P R Stephenson, A Allman,
D P Carville, P T Stoker, P Mokos,
J Tyrrell and T Burrows
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M A Nopp
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Resource and Reserve Valuation Practices in Countries Forming the Russian Commonwealth of
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Rio Tinto Mineral Resource and Ore Reserve Governance
S J Hunt and C S Eldridge
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Liability Issues Arising in Relation to Exploration, Mineral Resource and Ore Reserve Reports Included in
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REFERENCES
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and Disclosure*
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ABSTRACT
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1. Previously: Regional Commissioner Western Australia, Senior Executive Emerging Mining and Resources, Senior Executive Enforcement Western Australia, Australian Securities and
Investments Commission, Level 3, 66 St Georges Terrace, Perth WA 6000. Email: c/- [email protected]
* This paper was previously published in Proceedings International Mine Management Conference 2012, pp 3-14 (The Australasian Institute of Mining and Metallurgy: Melbourne).
BACKGROUND A LEGAL PERSPECTIVE

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* An earlier version of this paper was published in Proceedings 2010 Annual Conference of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). This updated version is reproduced
with the permission of the Canadian Institute of Mining, Metallurgy and Petroleum (http://www.cim.org).
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TABLE 1
NI 43-101 throughout mineral project development (simplified).
General
mineral project
development
stages
Defined stages in
NI43-101
Resource and Reserve categories

Disclosure permitted Disclosure prohibited
Acquisition of
tenements
Exploration
None
All
Early exploration
property
exploration information
None
All
Concept /
Scoping
Preliminary economic
assessment
Measured, Indicated
and Inferred Resources
Mineral Reserves
Pre-Feasibility
Preliminary Feasibility
Study
Feasibility
Feasibility Study
Construction
Development property
Production
Production property
Measured, Indicated
and Inferred Resources
/ Proven and Probable
Reserves
Closure
784
Other information
Relevant documents
NI43-101 and
CP parts
Historic estimates
(if applicable)
Potential quantity and grade
expressed as ranges
Preliminary economic
analysis of Mineral
Resources
2.4
2.3(2), 3.1, 3.2, 3.3
Detailed mine plan, social,

environmental and financial
studies
See items 16 to 22
of form 43-101F1
See items 16 to 22
of form 43-101F1
CIM exploration best

practice
2.3(3), 3.1, 3.2, 3.4

CP 1.1 (4)
Underground mining
method or pit configuration
/ mineral processing method
Inferred Resources in
economic evaluations
Guidelines
2.3(1), 3.1, 3.2, 3.4
CIM estimation of
Mineral Resources
and Mineral Reserves
best practice
Professional & Industry Organisations
Responsible
Entities
AusIMM, AIG
Statutory / SemiGovernment
Organisations
Regulatory Organisations
ASIC
MCA
RPOs
JORC
ASX
Compliance &
Guidance Standards
JORC Code
Incorporated as Appendix
Listing Rules
Competent Person
Those Required
to Comply
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mpliance
Publicly listed companies
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TABLE 2
Main differences between reporting systems in Canada and Australia.
Canada
Australia
Technical report
Requirement to publicly lodge a technical report to

support certain technical/scientific disclosure on
mineral deposits
Legal status
Have the force of law
Do not have the force of law (although ASX Listing Rules can be enforced under law)
Inferred Resources
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studies
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Inferred may not be aggregated with Measured and

Indicated
Inferred may be aggregated with Measured and Indicated
Qualified / Competent Person

experience
At least five years experience, and experience relevant

to the particular situation
At least five years experience relevant to the particular situation
Qualified / Competent Person

responsibility
More extensive and wide-ranging than for Australia
Technical report
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No requirement to publicly lodge a technical report; however, where Exploration

Results, Mineral Resources or Ore Reserves for a significant project are being reported
for the first time, or when those estimates have materially changed from when last
reported, a brief commentary on each of the criteria in Table 1 must be provided, as
well as a technical summary based against Table 1 criteria on an if not, why not basis
presented as an appendix to the Public Report
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TABLE 3
NI 43-101 technical report triggers.
Obligation to file a technical report triggers (NI43-101 part 4)
Event
When an independent technical report

is required (NI43-101 Part 5.3)
More information
Producing issuers
(NI43-101 Part 1.1)
Other issuers
Becoming a reporting issuer
NI43-101 part 4.1

Provincial/Territory Securities Acts
8
if the issuer trades on
a specified exchange
Filing a preliminary prospectus
NI43-101 part 4.2 (1)(a) NI44-101
Filing a short form prospectus
NI43-101 part 4.2 (1)(b) NI44-101
Conditional
NI43-101 part 4.2 (1)(c)
Conditional
Filing information or proxy circular concerning acquisition of a mineral property, if

issuing shares
NI43-101 part 4.2 (1)(d)
Conditional
For a producing issuer, filing a rights offering circular
NI43-101 part 4.2 (1)(e) NI45-101 part 1.1
Conditional
Filing an annual information form (AIF)
NI43-101 part 4.2 (1)(f) NI51-102 part 1.1
Conditional
Filing a valuation required by securities legislation
NI43-101 part 4.2 (1)(g)
Filing an offering document relating to Toronto Stock Exchange Venture Exchange policy
NI43-101 part 4.2 (1)(h)
Conditional
Filing a takeover bid circular
NI43-101 part 4.2 (1)(i)
Conditional
Any written disclosure other than the above that discloses either for the first time, or
as material changes in, Mineral Resources, Mineral Reserves or the results of a PEA
NI43-101 part 4.2 (1)(j)
Conditional
Filing an offering memorandum
8 = not required; 9 = required; conditional = if first preliminary economic assessment (PEA), Mineral Resource or Mineral Reserve for a property, or if 100 per cent or greater change in total Mineral
Resource or Mineral Reserve (see NI43-101 part 5.3 (1) (c) (i) and (ii)).
TABLE 4
Form 43-101F1, technical report; table of contents.
Item 1
Summary
Item 15
Mineral Reserve estimates
Item 2
Introduction
Item 16
Mining methods
Item 3
Reliance on other experts
Item 17
Recovery methods
Item 4
Property description and location
Item 18
Project infrastructure
Item 5
Accessibility, climate, local resources, infrastructure and physiography
Item 19
Market studies and contracts
Item 6
History
Item 20
Environmental studies, permitting and social or community impact
Item 7
Geological setting and mineralisation
Item 21
Capital and operating costs
Item 8
Deposit types
Item 22
Economic analysis
Item 9
Exploration
Item 23
Adjacent properties
Item 10
Drilling
Item 24
Other relevant data and information
Item 11
Sample preparation, analyses and security
Item 25
Interpretation and conclusions
Item 12
Data verification
Item 26
Recommendations
Item 13
Mineral processing and metallurgical testing
Item 27
References
Item 14
Mineral Resource estimates
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M Mullins1, P Hodkiewicz2,3, J McCluskey4, C Carey5
and J Terry6
ABSTRACT
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1. FAusIMM, Vice President Mineral Resource Development, BHP Billiton, 125 St Georges Terrace, Perth WA 6000. Email: [email protected]
2. FAusIMM, Senior Manager Resource Evaluation, BHP Billiton, 125 St Georges Terrace, Perth WA 6000. Email: [email protected]
3. Adjunct Research Fellow, Centre for Exploration Targeting, The University of Western Australia, 35 Stirling Highway, Crawley WA 6009.
4. MAusIMM, Manager Corporate Alignment Planning, BHP Billiton, 125 St Georges Terrace, Perth WA 6000. Email [email protected]
5. MAusIMM, Manager Resource Evaluation, BHP Billiton, 125 St Georges Terrace, Perth WA 6000. Email: [email protected]
6. MAusIMM, Senior Manager Resource Governance, BHP Billiton, 125 St Georges Terrace, Perth WA 6000. Email: [email protected]
INTRODUCTION
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FIG 1 - Mineral endowment growth associated with ongoing exploration

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THE MINERAL INVENTORY FRAMEWORK

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TABLE 1
Resource Range Analysis states of knowledge.
States of knowledge
Key contents and examples
Facts: information that is known,

unequivocal and can be substantiated by
direct observation or measurement
tPhysical data sets, locations, samples,

drill holes, seismic lines
Interpretations: inferences that have

been interpreted, derived, extrapolated
or interpolated from facts
tContinuity of geological units

tRegional- and local-scale structural
interpretations
tGeological maps
tGeophysical or geochemical models
Resource estimates
tGeotechnical models
Assumptions: assumptions that have

been developed in the absence of
any available information, but which
are required to complete analysis or
assessment
tAcceptance of a predefined stratigraphy

in the same region
tA structural model that has been
applied to the area
tGeological timing relationships
Unknowns: other plausible factors or

events that could influence assessment
of outcomes, which have not been
previously observed or considered
tStructural complexity, repetition,

folding, fault thickening/thinning,
etc that is unforeseen from current
knowledge
tYoung intrusive rock truncating
mineralisation
tSignificant change to contaminants
concentrations along strike
tEffects of erosion
tAspects of primary genesis, etc
Exploration maturity
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Development of deterministic mineral inventory

cases
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intrusives, volcanics,
siliciclastic and
calcareous sediments)
Multi-phase
intrusions and
brecciation
Tectonic
Setting
Cu, Mo, Au, Ag

content (grade)
Alteration
assemblages
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and advanced
argillic)
Structural
framework
providing
locus for
porphyry
intrusion and
mineralisation
Cu species (low sulphidation

and As-bearing intermediate &
high sulphidation)
Style of
mineralisation
(hypogene
only)
Cu Eq
mineral
inventory
Preserved volume
and geometry
Age
Uplift and erosion
Structural
disruption (postmineral faulting)
Key
Influences
FIG 3 - Typical influence diagram for a porphyry copper deposit.
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TABLE 2
Definitions of deterministic cases.
Case
Description
Min
Minimum or most pessimistic deterministic estimate, absolute lowest limit

or lowest possible numeric value. The worst possible geological occurrence
and mining outcome, which creates minimum value.
Max
Maximum or best-case deterministic estimate, absolute high limit or highest

possible numeric value. The best possible geological occurrence and mining
outcome, which creates maximum value.
Mid
Best deterministic estimate of future outcome, which reflects minimum

uncertainty and is neither optimistic nor pessimistic: the realistic, most likely
to happen. The Mid is represented by the mode of a distribution. The Mid case
is not the Median.
Low and High cases should be determined after an initial distribution is generated
from the Min-Mid-Max. They are useful where the team desires greater control over
the shape of the distribution.
Low
Reasonable downside estimate, lower than Mid but not extreme; low
numeric value that is feasible or capable of being implemented.
High
Reasonable upside estimate, higher than Mid but not extreme; high numeric
value that is feasible or capable of being implemented.
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TABLE 3
Examples of drivers for deterministic cases.
Influence
Cases
Min
Low
Mid
High
Max
Density
2.6
2.9
3.2
3.4 3.6
4.0
Grade
Low grade (-40%)
Similar grade to lower

(-20%)
Grade based on existing data

and understanding
Higher grade (25%)
Highest grade (+50%)
Continuity (grade
and geology)
No continuity
Limited continuity
Variable continuity
Moderate continuity
Total continuity
Gangue minerals
Significant quantities of
deleterious gangue minerals
Sufficient deleterious
gangue minerals to cause
processing issues
Variable quantities of
deleterious gangue minerals
Insufficient gangue minerals

to affect processing
No deleterious gangue
minerals
Discrete zones
Narrow zones
Narrow and wider zones
Concentrated mineralised
zones with broader
brecciation
Entirely mineralised
Structural
complexity
Significant complexity
to make ore delineation
difficult
Sufficient complexity to
affect delineation and
dislocate ore
Sufficient complexity in
parts to affect delineation
and dislocate ore
Minor complexity dislocates

some ore and affects some
drilling
Insufficient complexity
to dislocate ore or affect
drilling
Gravity anomaly
Mineralisation has no
relationship to gravity
anomaly
Mineralisation has a poor

relationship to gravity
anomaly
Some ore positions match

gravity interpretation
Ore positions match reinterpreted gravity anomaly
Matches gravity anomaly

and validates original
interpretations
Copper recovery
50 - 60% sulfide recovery
80% sulfide recovery
Mineralisation
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Cerro Colorado: Mineral Resource, Ore Reserve and production summary, shown in Figure 1.
Year
Mineral Resources
Measured
Ore Reserves
Indicated
Inferred
Proved
Probable
Run-of-mine
copper
production
(Kt)
Tonnage
(Mt)
T Cu / S Cu
(%)
Tonnage
(Mt)
T Cu / S Cu
(%)
Tonnage
(Mt)
T Cu / S Cu
(%)
Tonnage
(Mt)
T Cu / S Cu
(%)
Tonnage
(Mt)
T Cu / S Cu
(%)
2002
20.0
0.72 / 0.34
201.0
0.79 / 0.41
14.0
0.76 / 0.42
20.0
0.71 / 0.34
202.0
0.80 / 0.41
155.4
2003
14.5
0.74 / 0.33
294.0
0.75 / 0.36
42.0
0.66 / 0.29
35.0
0.81 / 0.25
172.0
0.80 / 0.44
155.9
2004
111.1
0.77 / 0.41
212.5
0.72 / 0.37
43.0
0.58 / 0.26
100.2
0.77 / 0.42
105.0
0.77 / 0.46
159.4
2005
104.7
0.75 / 0.41
203.3
0.71 / 0.37
43.0
0.57 / 0.25
91.5
0.75 / 0.44
99.2
0.76 / 0.45
140.4
2006
96.4
0.62 / 0.43
192.3
0.69 / 0.36
43.0
0.58 / 0.25
85.0
0.75 / 0.46
89.1
0.76 / 0.42
143.1
2007
147.3
0.71 / 0.39
97.8
0.61 / 0.34
121.4
0.58 / 0.25
89.4
0.67 / 0.36
73.4
0.70 / 0.42
146.4
2008
135.5
0.70 / 0.37
93.0
0.62 / 0.35
129.6
0.56 / 0.25
75.3
0.66 / 0.33
77.6
0.67 / 0.41
156.0
2009
165.3
0.66 / 0.37
142.2
0.62 / 0.34
64.7
0.57 / 0.23
89.5
0.64 / 0.37
78.4
0.67 / 0.36
147.7
2010
166.3
0.65 / 0.37
188.3
0.66 / 0.36
77.9
0.65 / 0.19
103.5
0.63 / 0.36
97.1
0.67 / 0.35
125.2
2011
152.9
0.65 / 0.37
188.4
0.66 / 0.36
83.1
0.64 / 0.18
110.3
0.64 / 0.37
92.3
0.65 / 0.35
135.0
2012
96.1
0.66 / 0.30
316.6
0.64 / 0.33
82.4
0.58 / 0.24
49.6
0.68 / 0.31
151.8
0.61 / 0.34
123.5
2013
80.0
0.63 / 0.29
297.0
0.62 / 0.32
79.0
0.57 / 0.22
46.0
0.68 / 0.28
133.0
0.59 / 0.32
116.7
797
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Mineral Resource Classification

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P R Stephenson1, A Allman2, D P Carville3, P T Stoker4,
P Mokos5, J Tyrrell6 and T Burrows7
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1. FAusIMM(CP), Director / General Manager / Principal Geologist, AMC Mining Consultants (Canada) Ltd, 202 - 200 Granville Street, Vancouver BC V6C 1S4, Canada.
2. MAusIMM(CP), Independent Mining Engineer (previously: AMC Consultants Pty Ltd, Melbourne). Email: [email protected]
3. MAusIMM, Geology Manager/Principal Geologist, AMC Consultants Pty Ltd, 9 Havelock Street, West Perth WA 6005. Email: [email protected]
5. MAusIMM(CP), Principal Mining Engineer, AMC Consultants Pty Ltd, Level 19, 114 William Street, Melbourne Vic 3000. Email: [email protected]
6. MAusIMM, Senior Geologist, AMC Consultants Pty Ltd, 9 Havelock Street, West Perth WA 6005. Email: [email protected]
7. Geology Manager / Principal Geologist, AMC Consultants Pty Ltd, Level 19, 114 William Street, Melbourne Vic 3000. Email: [email protected]
* An earlier version of this paper was published in Proceedings Sixth International Mining Geology Conference 2006, pp 91-95 (The Australasian Institute of Mining and Metallurgy: Melbourne).
INTRODUCTION
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Geological problems with the spotted-dog approach

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for open pit mines, the impact is less severe than for underground mines.
9. Dilution comprises (a) planned to form the stope shape, (b) unplanned hanging wall
and footwall overbreak and (c) operational such as backfill exposure fall-off, stope floor
over-mucking, etc.
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Mineral Resource Classification Its Time to Shoot the Spotted Dog!| P R Stephenson et al
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TABLE 1
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Project development
stage
Criterion
Exploration areas
Mineralisation may or may not be defined, but where

a Mineral Resource has not been identified.
Advanced exploration areas
Considerable exploration has been undertaken and

specific targets identified. Sufficient work has been
completed on at least one prospect to provide a good
geological understanding and encouragement that
further work is likely to result in the determination of
a Mineral Resource.
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Mineral Resources and/or Ore Reserves were identified

and estimated. A positive development decision
has not been made. This includes properties where
a development decision has been negative and
properties are either on care and maintenance or held
on retention titles.
Development
Committed to production but not yet commissioned

or not initially operating at design levels.
Operating
Mineral properties, in particular mines and processing

plants, which were fully commissioned and are in
production.
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TABLE 2
Rule-of-thumb confidence intervals for technical studies (90 per cent confidence).
Measure/item
Scoping Study
Pre-Feasibility
Study
Final Feasibility
Study
25 - 50%
15 - 25%
10 - 15%
30 - 50%
15 - 30%
<15%
<5%
<20%
<50%
Mostly Inferred
Mostly Indicated
Measured and
Indicated
None
Mostly Probable
Proved and
Probable
Assumed
General
Optimised
Mine design
None or high-level
conceptual
Preliminary mine
plan and schedule
Detailed mine plan

and schedule
Scheduling
Annual
approximation
Three-monthly to
annual
Monthly for much

of payback period
High
Medium
Low
Cost accuracy
Cost contingency
Proportion of
engineering
complete
Resource
categories
Reserve categories
Mining method
Risk tolerance
MINERAL RESOURCES
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in discussing reasonable prospects for eventual economic
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(albeit preliminary) in respect of all matters likely to
approximate mining parameters by the Competent Person.
While a Scoping Study may provide the basis for that
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have been completed to report a Mineral Resource.
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economically extractable.
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underground mine or outside economic pit limits).
MODIFYING FACTORS AND ORE RESERVES

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Mineral Resource estimates as the terms imply technical
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Reports and statements should continue to refer to the
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occur when the material is mined or extracted and is
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level studies will have been carried out prior to determination
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necessarily signify that extraction facilities are in place or
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that all necessary Government approvals will be received.
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material unresolved matter that is dependent on a third
party on which extraction is contingent.
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TABLE 1
Comparison of design documents.
International formata
Russian format
b
Investment justification, TED, TEP, TES , TER etc

TES, TER, TEO of Mining Parametersb, preliminary TEO
b
TEO of Mining Parameters , TEO, investment justification
Design documents: mine design and engineering documents
Development period
Error margin (%)
Scoping Study
2 - 3 months
Up to 50 and higher
Pre-Feasibility Study
5 - 8 months
25 - 40
Feasibility Study
9 - 12 months
10 - 15
Detailed Engineering
More than 1 year
Less than 10
a. The comparison of the Russian and international formats largely depends on the quality and the detail level of documents. The documents cannot be considered exact equivalents.
b. The detail level depends on the quality of the document preparation.
TED technical and economic report; TEP technical and economic proposals; TEO technical and economic justification; TER technical and economic estimations; TES technical and economic comparison.
FIG 2 - Simplified pathway for preparation of mine design documents.

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in Russia (detailed engineering)
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Detailed data on the deposit structure, orebodies structure, distribution of

It is sufficient to provide tentative data on the deposit
structure, mineralisation nature and general data on orebody commercial components in the strata.
structure.
The in situ resource tonnage is estimated in detail.
The in situ resource tonnage is estimated approximately.
The mineable reserves are estimated, based on the preliminary mining
Resources and mineable reserves
Tentative data on the technological properties of the ore
Technological properties of the ore
Tailings
The expected needs in tailings facilities are indicated.
Identification of the main capital construction targets.
Identification of the main constraints and needs in

development of the internal and external infrastructure.
General data on the hydrogeological conditions and surface

water courses.
Hydrogeology
Infrastructure
General data on the tectonic structure and rock properties.
Rock mechanics
The mineable reserves are estimated roughly, without

detailed delineation and without detailed estimation of
losses and dilution (using the recovery factor, analogues,
etc).
General information.
Social aspects and territory
Estimation of water-make and mine water quality based on a number of

factors. Drainage and water diversion program. Estimation of drainage
facilities capacity.
Approximate estimation of the water-make and mine water quality. An

approximate estimation of drainage facilities.
Detailed infrastructure architectural and layout solutions.
Principal infrastructure architectural and layout solutions.
Detailed estimation of the principal parameters of tailings dams, slurry

pumps and the scope of construction. Precise localisation. Graphic
representation of the tailings dams parameters. Geomechanical
justification of the slope angles, estimation of the tailings transportation
system parameters.
Needs in infrastructure with a breakdown by specific aspects (power,

heating, etc) are justified in detail.
Identification of the main needs in infrastructure with a breakdown by

specific aspects (power, heating, etc).
Estimation of the principal parameters of tailings dams, slurry pumps and
the scope of construction. Identification of the location site.
Detailed location and mine site layout plans.
Draft location and mine site layout plans.
Processing tests (laboratory studies), prediction of the principal processing Detailed ore processing studies (full scale and pilot tests), prediction of the
parameters and quality of the saleable products.
principal processing parameters and quality of the saleable products for
various ore types.
Detailed data on the hydrogeological conditions and surface water

courses.
Estimation of the stable parameters of workings, rock pressure, etc

supported by calculations. Development of measures to control hazardous
geodynamical and gas processes and workings deformation.
Detailed data on the hydrogeological conditions and surface water

courses.
Detailed data on rock mechanics and subsidence issues.
Detailed data on rock mechanics.
Mineable reserves are estimated, based on the preliminary mining and

geological modelling. Potential losses and dilution are estimated. The
delineation of the mineable reserves is based on the detailed analysis.
Social responsibility measures taken by the mineral resource user. Public

hearings.
Detailed description of all significant aspects based on the studies

undertaken during the site visit.
12 - 16 months
Working design mine construction design
Preliminary assessment of the stable parameters of workings, rock

pressure, etc
and geological modelling. Potential losses and dilution are estimated. The
delineation of the mineable reserves is based on the detailed analysis.
Description of the project impact on the territory development and the

description of all significant aspects.
Detailed description of all significant aspects.
General information.
General information on a mineral

deposit site (location, natural,
weather, hydrographical and
orographic conditions, etc)
5 - 12 months
Preliminary TEO, TER, TES, TEO of mining parameters
3 - 5 months
TED, TEP
Time frame
Area of studies
TABLE 2
Details of design documents.
819
820
Area of studies
An approximate estimation of the needs in the mining equipment by years of

operation.
Schedule is tentative and based on analogues.
Consideration of applicable mining equipment.
The capital expenditures for equipment are estimated

by the main stages of operations and are based on
analogues..
Degassing and ventilation
Scheduling
Mining equipment
Environment protection
The principal stages of the environmental impact assessment.
The forecast of the amount and quality of the saleable products by years of
operation.
Water/slurry balance and mass balance.
The preliminary estimation of the processing plant equipment by processing

stages.
Justification of the principal parameters of processing plants.
Graphic representation of the mining outline by stages and, in some cases, by

years. Drawings of individual elements of mine workings.
Graphic representation of the mining outline by stages.
The major mine closure issues.
Detailed estimation of rehabilitation and mine closure activities.
Detailed environmental impact assessment and development of comprehensive

environmental actions.
Forecast of the amount and key quality parameters of saleable products by

years of operation.
Detailed water/slurry balance and mass balance.
Detailed estimation of the processing plant equipment by processing stages,

including the auxiliary equipment.
Justification of parameters of processing plants including structural concepts

and automation.
The estimation of the needs in the mining equipment by years of operation,

supported by calculations.
The detailed justification of optimal types and models of the equipment.
Mining schedule with the estimation of the production output, the scope of
stripping (roadways drivage and development) and the ore quality.
Mine ventilation layout. The detailed degassing and gas control layout.
All key parameters of drilling and blasting (hole spacing, specific consumption,
drilling depth, etc). Estimation of safe distances, etc.
Detailed analysis of the need in drilling operations and drilling equipment by

years.
Detailed justification of parameters of main roadways, development headings

and the roof support system, based on the rock mechanic factors, ventilation
and transportation operations.
Justified mining schedule with the estimation of the production output, the
scope of stripping (roadways drivage and development) and the ore quality.
Estimation of the need in drilling operations and drilling equipment by

years. The principal parameters of drilling and blasting (hole spacing, specific
consumption, drilling depth, etc).
Development of environmental actions.

Review of the main factors of the environmental impact. Draft estimation of rehabilitation and mine closure activities.
A rough plan for mitigation of the environmental impact.
Review of the principal environmental requirements,

risks and problems.
The preliminary forecast of the potential amount and

quality of the saleable products.
An approximate estimation of the needs in processing

facilities.
Preliminary data on the gas make and air quality control Development of degassing actions. Estimation of the air amount in the mine.
actions.
Selection of the equipment types and models.
Review of the need in drilling and blasting
Drilling and blasting
Principal parameters of main roadways and development headings are

identified and the roof support layout is set.
Issues are not considered in detail.
Principal parameters of
workings
Detailed estimation of principal parameters of dumps. Precise localisation.

Graphic representation of the dumps parameters. Geomechanical justification
of the slope angles.
Mine layout for various stages. Scheduling of development by years and stages.
General estimation of losses and dilution.

Conceptual mine layout and main issues of development operations.
Estimation of the principal parameters of dumps, selection of the dumping
method. Identification of the location site.
Comprehensive estimation of losses and dilution.
Justification of range of the optimal mine production capacity.
Expected needs in dumping facilities are indicated.
Processing

Detailed studies of mining method, access layout and optimal mine production
capacity.
Rough estimation of mine production capacity.

Comparison of the deposit development options and selection of the base
mining method and access layout.
TED, TEP
Consideration of several alternative options of the

deposit development.
Dumping
Mining methods and access

layout
TABLE 2
Cont
Identification of the principal risk factors.
The issues are not considered.
A conceptual consideration of compliance with the

requirements of the maximum possible extraction of
mineral resources.
Principal risks are indicated.
The major economic parameters (capital and operating

expenditures, etc) are based on analogues and experts
experience.
Health and safety
Civil defence
Subsoil resources protection

and rational use
Project risks
Economic and financial

valuation
Testing of the project sensitivity to variable parameters.
The major project viability parameters (internal rate of return, net present
value, terminal value, payback period, etc).
The marketing studies are focused on the saleable products and market
segments, including a detailed saleable product price forecast.
The cash flow model includes the estimation of revenues, capital and operating
expenditures, taxes, depreciation, sustaining expenditures.
The major economic parameters (capital and operating expenditures, etc)

are based on direct calculations of the parameters of the major construction
targets, mining operations (roadways drivage, development, etc) and the
mining equipment.
Development of the major measures for risk mitigation.
Estimation of the macro-economic effect in some cases.
Taxes estimation.
The operating expenditures are estimated by main processes and elements.
The major costs of the capital construction targets and equipment are based on
the latest prices of the material and equipment manufacturers.
Estimation of construction and assembly expenditures.
Capital and operating expenditures are adjusted as much as possible for the
conditions of the construction site and mining operations.
Major economic parameters (capital and operating expenditures, etc) and

project viability parameters are estimated, based on an accurate accounting of
all latest project solutions.
Risk minimisation measures are taken.
All principal risks are identified, taken into account in the course of designing
and indicated.
Calculations and estimations for justification of losses.
Losses can be estimated, based on the common standards only.

Assessment of individual project risks significance.
Detailed justification of the general and mining losses, based on the regulatory
documents.
Draft justification of the general and mining losses, based on the regulatory
documents.
Warning and alarm measures.
Comprehensive civil defence measures, protection against natural and maninduced phenomena and emergencies.
Development of key emergency and incident prevention measures, including

risk mitigation plans. Maximum adaptation of all solutions to the health and
safety rules and standards.
The issues are considered at a conceptual level.
Comprehensive health and safety measures.
Development of the principal emergency and incident prevention measures.
Calculation of the manpower by subdivisions, professions and production

processes. Estimation of the actual and payroll workforce factors.
Development of the principal health and safety measures.
Draft estimation of the manpower by subdivisions in view of the operating

mode.
Notes: TED technical and economic report; TEP technical and economic proposals; TEO technical and economic justification; TER technical and economic estimations; TES Technical and economic comparison.
Marketing review.
The simplified cash flow model or the project

capitalisation valuation, using the comparative method.
The main personnel number is set, based on the

analogues.
TED, TEP
Human resources
Area of studies
TABLE 2
Cont
821
TABLE 3
Topics included in the design documents.
Section
Contents, principal issues
Explanatory note
Terms of reference for designing, findings of the engineering studies, entitlement documents for the capital construction target if the design
documents are developed for the upgrading or the overhaul repair of the capital construction target, data on the capital construction targets
needs in fuel, gas, water and power, data on the design capacity, data on the resource base, technical and economic parameters of the
designed capital construction targets.
Land plot layout
Parameters of the land plot allocated for the capital construction target, geodetic conditions, justification of the boundaries of the sanitary
and protection zones of capital construction targets, justification of the land plot layout, description of the plot levelling and improvement,
general layout plan, etc
Architectural concept
Justification of the structural and spatial concepts and architectural solutions, description and justification of the interior and exterior of the
capital construction target, protection of premises against noise, vibration and other impacts, etc
Structural and spatial concepts
Data on topographic, engineering, geological, hydrogeological, meteorological and weather conditions of the land plot, data on the specific
natural and weather conditions of the area where the capital construction target land plot is located, data on the strength and deformation
of the soil at the basement of the capital construction target, groundwater level and chemical composition, description and justification of
the structural concepts of buildings and facilities, including spatial layouts used for the structural designing, floor plans of the buildings and
facilities, typical cross-sections, etc.
Utility systems, engineering

Power supply; water supply; water disposal; heating, ventilation and air conditioning, heating networks; communication networks; gas
networks, engineering and technical supply; technological solutions.
activities, technological solutions
Construction management plan
Characteristics of the capital construction target location area and construction conditions, data on the potential local workforce, description
of the specific features of the work undertaken at the operating facility, justification of the organisational and technological process charts,
which set the sequence of construction and development operations, proposals on quality control of construction and assembly work, etc.
Plan of demolition or dismantling

of capital construction targets
Section is included if it is necessary to demolish/dismantle the capital construction target or its part. It should contain the justification for
development of the plan for demolition or dismantling of buildings, structures and facilities, the list of activities for decommissioning of
buildings, structures and facilities, description of activities for removal and utilisation of waste, process charts and sequence of demolition/
dismantling actions.
Environmental activities
Environmental impact assessment of the capital construction target, the list of activities for mitigation of the potential adverse
environmental impact, pollutants concentrations estimates, justification of solutions for waste water treatment, protection of air against
emissions, subsoil resources protection, maps, diagrams and tables showing the air pollution, etc.
Fire safety
Description of the fire safety system, justification of the fire safety distances between buildings, justification and description of design
solutions for ensuring personnel safety in case of fire, description and justification of the plan for evacuation of people and material resources
in case of fire, etc.
Construction cost estimate
The section should contain the narrative part (explanatory note) and the cost estimates, the list of estimate standards, reference books
and catalogues used for estimation of the construction costs, the name of the contractor (if any), justification of the specific features of the
construction cost estimation for the capital construction target.
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ACKNOWLEDGEMENTS
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Resource and Reserve Valuation

Practices in Countries Forming
the Russian Commonwealth
of Independent States
H Arden1 and A Tverdov2
ABSTRACT
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1. Principal Geologist, Project Manager, IMC Group Consulting Ltd, 10 Grosvenor Gardens, London SW1W 0DH, UK. Email: [email protected]
2. Head of Mining Development, Project Manager, IMC-Montan, Building 422, Chayanova Street, Moscow, Russia. Email: [email protected]
INTRODUCTION
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TABLE 1
General framework of the geological characterisation of mineral deposits.
Study stage
General task
Regional geological study of

Stage I Common geological
subsurface and prediction of
and mineralogical work
mineralisation
Stage II Prospecting and

evaluation of deposits
Stage III Deposit

exploration and development
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Scope of work and deliverables

Regional geological and geophysical survey. Identification of promising sites for prospecting.
Greenfield exploration
Exploration of basins, ore districts, fields, etc through geophysical surveys, single boreholes and workings.
Estimation of prognostic P1, P2, P3 Resources. Technical and economic considerations of ore occurrence prospects.
Prospecting (including
preliminary exploration)
Geological survey of a prospective deposit at a far-spaced grid of boreholes and workings. Evaluation of general
parameters of the deposit, configuration and size of orebodies, technological properties of ore, hydrogeological
conditions, etc. Qualitative and quantitative evaluation of prognostic 1 Resources, 1 and 2 Resources. Technical
and economic report or technical and economic proposals. Technical and Economic study (TEO) of provisional
cut-off parameters and recording Reserves on the state balance.
Detailed exploration
Drilling of a closely-spaced borehole grid sufficient for the most detailed study of geological and technological
properties of ore and the most accurate estimation of the economic potential of the deposit. Classification of , ,
1 and 2 Reserves. TEO of final cut-off parameters with GKZ re-approval of Reserves on the state balance.
Mine operations
Operational exploration in the process of mining operations aimed at detailed study of the subsurface required
for current mine planning. Development of operational cut-off parameters.
Resource and Reserve Valuation Practices in Countries Forming the Russian Commonwealth of Independent States|H Arden and A Tverdov
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TABLE 2
Reserve categories in Russian and Commonwealth of Independent States systems.
Category
Description
Deposit is known in detail, boundaries of the deposit have been outlined by trenching, drilling, or underground workings. Quality and properties of the mineral are
known in sufficient detail to ensure the reliability of the projected exploitation.
Deposit has been explored but is only known in fair detail, boundaries of the deposit have been outlined by trenching, drilling, or underground workings. Quality and
properties of the mineral are known in sufficient detail to ensure the basic reliability of the projected exploitation.
C1
Deposit has been estimated by a sparse grid of trenches, boreholes or underground workings. The quality and properties of the deposit are known tentatively by
analogy with known deposits of the same type and the general conditions for exploitation are known tentatively. This category includes Resources peripheral to the
boundaries of the A and B category and also Reserves allocated in complex deposits in which the mineral distribution cannot be reliably determined even by a very
dense grid.
C2
Extent of the deposit has been extrapolated from limited data. This category includes Resources adjoining areas designated as A, B and C1 in the same deposit.
P1
Resources in the P1 category may extend outside the actual limits of the mineral Reserves defined in the C2 category. The outer limits of P1 type Resources are
determined indirectly by extrapolating from similar known mineral deposits in the area. P1 is the main source from which C2 Reserves can be increased.
P2
These Resources represent possible mineral structures in known mineral deposits. They are estimated based on geophysical and geochemical data. Morphology,
mineral composition and size of the mineralisation is estimated by analogy with similar mineralised geological structures in the area.
P3
Potential for discovery of a deposit of any type of mineral on the basis of favourable geological and indicative preconditions found in the prospective area by
undertaking medium to small-scale geological and geophysical surveying, satellite image interpretation and analysis of geophysical and geochemical survey results.
TABLE 3
Classification of deposits according to their complexity in Russia and countries that form the Commonwealth of Independent States.
Complexity type
Description
Large deposits, simple in form with uniform distribution of minerals. The highest confidence classes of Reserves, A + B Reserves, can be established on the
basis of boreholes, trenches and trial pits.
II
Large deposits with variable and sometimes complicated forms and an uneven distribution of minerals. Only B and C1 Reserves may be defined based on
exploration data, such as boreholes, trenches and pits and higher confidence Reserves classes can be established only by a combination of closely-spaced
boreholes and active exploitation.
III
Deposits are smaller in size with uneven distribution of minerals (examples include vein-hosted or pegmatite deposits, skarns and dykes). Only C1 and C2
Reserves may be defined based on exploration data and higher confidence Reserves classes can be established only on the evidence of operational experience.
IV
Complex geological structure with small or rarely medium-sized orebodies with exceptionally uneven mineralisation or characterised by sharp variations in
thickness and internal structure, extremely uneven mineral quality or grade and intermittent concentrations of the main useful constituents. Deposits of this
group are explored primarily to Russian Resource category C2, with confirmation of reliability of their estimation, in areas of detailed study, at category C1.
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Rio Tinto Mineral Resource and

Ore Reserve Governance
S J Hunt1 and C S Eldridge2
ABSTRACT
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1. Chief Advisor Orebody Knowledge; General Manager Advanced Project Support, Rio Tinto, Technology and Innovation, 1 Research Avenue, Bundoora Vic 3083. Email: [email protected]
2. MAusIMM, Chief Advisor Resources and Reserves, Rio Tinto, Technology and Innovation, Level 25, 152 - 158 St Georges Terrace, Perth WA 6000. Email: [email protected]
INTRODUCTION
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REFERENCES
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5LR 5LQWR JURXS LQ Mineral Resource and Ore Reserve Estimation
The AusIMM Guide to Good PracticeHG$&(GZDUGVSS
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Liability Issues Arising in Relation to

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F Gardiner-Hill1
ABSTRACT
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1. Fiona Gardiner-Hill was a partner at Herbert Smith Freehills. She sadly passed away just before the publication of this volume. Permission from the family to include this paper here is
gratefully acknowledged.
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ABSTRACT
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* An earlier version of this paper was published as an article in the AusIMM Bulletin, Jan/Feb 2008 edition, pp 56-64.
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Group A
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Appendix | The JORC Code 2012
Australasian Code for Reporting of

Exploration Results, Mineral Resources
and Ore Reserves
The JORC Code

2012 Edition
Effective 20 December 2012 and

mandatory from 1 December 2013
Prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC)
Contents
Foreword
Introduction
Scope
Competence and Responsibility
Reporting Terminology
Reporting General
Reporting of Exploration Results
10
Reporting of Mineral Resources
11
Reporting of Ore Reserves
16
Technical Studies
19
Reporting of Mineralised Fill, Remnants, Pillars,

Low Grade Mineralisation, Stockpiles, Dumps and Tailings
21
Reporting of Coal Resources and Reserves
21
Reporting of Diamond Exploration Results, Mineral

22
Reporting of Industrial Minerals Exploration Results,

23
Reporting of Metal Equivalents
24
Reporting of In Situ or In Ground Valuations
24
Table 1 Checklist of Assessment and Reporting Criteria
26
Section 1 Sampling Techniques and Data
26
Section 2 Reporting of Exploration Results
28
Section 3 Estimation and Reporting of Mineral Resources
29
Section 4 Estimation and Reporting of Ore Reserves
31
Section 5 Estimation and Reporting of Diamonds

and Other Gemstones
33
Appendix 1 Generic Terms and Equivalents
36
Appendix 2 Competent Persons Consent Form
37
Appendix 3 Compliance Statements
42
Appendix 4 List of Acronyms
44
Joint Ore Reserves Committee 2012

An appropriate citation is: JORC, 2012. Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(The JORC Code) [online]. Available from: <http://www.jorc.org> (The Joint Ore Reserves Committee of The Australasian Institute
of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia).
The Joint Ore Reserves Committee authorises the use and reproduction of this Code in part or in its entirety on the condition that the
source is appropriately acknowledged. For further information please contact The AusIMM Publications Department on
+61 3 9658 6100 or via email: [email protected]
JORC Code, 2012 Edition
Foreword
1.
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the
JORC Code or the Code) sets out minimum standards, recommendations and guidelines for Public
Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The Joint Ore
Reserves Committee (JORC) was established in 1971 and published several reports containing
recommendations on the classication and Public Reporting of Ore Reserves prior to the release of the
rst edition of the JORC Code in 1989.
Revised and updated editions of the Code were issued in 1992, 1996, 1999, and 2004. This 2012
edition supersedes all previous editions.
Since 1994, the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) has
worked to create a set of standard international denitions for reporting Mineral Resources and Mineral
(Ore) Reserves, based on the evolving JORC Codes denitions. CRIRSCO was initially a committee of
the Council of Mining and Metallurgical Institutions (CMMI).
Representatives of bodies from Australia, Canada, South Africa, USA and the UK reached provisional
agreement on standard denitions for reporting resources and reserves in 1997. This was followed
in 1998 by an agreement to incorporate the CMMI denitions into the International Framework
Classication for Reserves and Resources Solid Fuels and Mineral Commodities, developed by the
United Nations Economic Commission for Europe (UN-ECE).
CMMI was disbanded in 2002 but CRIRSCO remained as a separate entity and now has a relationship
with the International Council on Mining and Metals (ICMM). An initiative was commenced by
CRIRSCO to develop a Template, largely based on the JORC Code, that was designed to assist countries
to develop their own code in line with world best practice. The Template has been recognised as a
commodity-specic code in UNFC 2009.
CRIRSCOs members are National Reporting Organisations (NROs) who are responsible for developing
mineral reporting codes or standards and guidelines. The NROs are: Australasia (JORC), Canada
(CIM Standing Committee on Reserve Denitions), Chile (National Committee), Europe (PERC),
Russia (NAEN), South Africa (SAMCODES) and USA (SME). As a result of the CRIRSCO/CMMI
initiative, considerable progress has been made towards widespread adoption of consistent reporting
standards throughout the world. In this edition of the JORC Code dened terms are aligned to the
CRIRSCO Standard Denitions as revised in October 2012.
Introduction
2.
In this edition of the JORC Code, important terms and their denitions are highlighted in bold text.
The guidelines are placed after the respective Code Clauses using indented italics. Guidelines are not
part of the Code but are intended to provide assistance and guidance to readers and should be considered
persuasive when interpreting the Code.
3.
The Code has been adopted by The Australasian Institute of Mining and Metallurgy (The AusIMM)
and the Australian Institute of Geoscientists (AIG) and is binding on members of those organisations.
The Code is endorsed by the Minerals Council of Australia and the Financial Services Institute of
Australasia as a contribution to good practice. The Code has also been adopted by and included in the
listing rules of the Australian Securities Exchange (ASX) and the New Zealand Stock Exchange (NZX).
The ASX and NZX have, since 1989 and 1992 respectively, incorporated the Code into their listing
rules. Under these listing rules, a Public Report must be prepared in accordance with the Code if it
includes a statement on Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves.
The incorporation of the Code imposes certain specic requirements on mining or exploration
companies reporting to the ASX and NZX. There remain a number of other issues outside of the JORC
Code associated with Public Reports that are addressed specically within the listing rules.
Code is in normal typeface, guidelines are in indented italics, definitions are in bold.
As such, it is strongly recommended that users of the Code familiarise themselves with the listing rules of
the relevant exchange that relates to Public Reporting of Exploration Results, Mineral Resources and Ore
Reserves.
For Public Reports of initial or materially changed Exploration Results, Mineral Resources or Ore
Reserves the JORC Code requires the Competent Person, on whose documentation the Public Report
is based, to be named in the Public Report. The Public Report or attached statement must say that
the Competent Person consents to the inclusion in the Public Report of the matters based on their
information in the form and context in which it appears, and must include the name of the Competent
Persons rm or employer.
Users of the Code should refer to Clause 9.
Scope
4.
The principles governing the operation and application of the JORC Code are Transparency, Materiality
and Competence.
s Transparency requires that the reader of a Public Report is provided with sufcient information, the presentation of which is clear and unambiguous, to understand the report and not
be misled by this information or by omission of material information that is known to the
Competent Person.
s Materiality requires that a Public Report contains all the relevant information that investors
and their professional advisers would reasonably require, and reasonably expect to nd in the
report, for the purpose of making a reasoned and balanced judgement regarding the Exploration Results, Mineral Resources or Ore Reserves being reported. Where relevant information
is not supplied an explanation must be provided to justify its exclusion.
s Competence requires that the Public Report be based on work that is the responsibility of
suitably qualied and experienced persons who are subject to an enforceable professional
code of ethics (the Competent Person).
Transparency and Materiality are guiding principles of the Code, and the Competent Person must
provide explanatory commentary on the material assumptions underlying the declaration of Exploration
Results, Mineral Resources or Ore Reserves.
In particular, the Competent Person must consider that the benchmark of Materiality is that which
includes all aspects relating to the Exploration Results, Mineral Resources or Ore Reserves that an
investor or their advisers would reasonably expect to see explicit comment on from the Competent
Person. The Competent Person must not remain silent on any material aspect for which the presence or
absence of comment could affect the public perception or value of the mineral occurrence.
5.
Table 1 provides a checklist or reference of criteria to be considered by the Competent Person in

developing their documentation and in preparing the Public Report.
In the context of complying with the principles of the Code, comments relating to the items in the
relevant sections of Table 1 should be provided on an if not, why not basis within the Competent
Persons documentation. Additionally comments related to the relevant sections of Table 1 must
be complied with on an if not, why not basis within Public Reporting for signicant projects (see
Appendix 1 Generic Terms and Equivalents) when reporting Exploration Results, Mineral Resources
or Ore Reserves for the rst time. Table 1 also applies in instances where these items have materially
changed from when they were last Publicly Reported. Reporting on an if not, why not basis is to ensure
that it is clear to an investor whether items have been considered and deemed of low consequence or
are not yet addressed or resolved.
For the purposes of the JORC Code the phrase if not, why not means that each item listed in the relevant
section of Table 1 must be discussed and if it is not discussed then the Competent Person must explain why
it has been omitted from the documentation.
The Code requires in Clauses 19, 27 and 35 that reporting of rst time or materially changed
Exploration Results, Mineral Resources or Ore Reserves estimates be accompanied by a technical
summary of all relevant sections of Table 1 on an if not, why not basis as an appendix to the Public
Report.
A material change could be a change in the estimated tonnage or grade or in the classication of the
Mineral Resources or Ore Reserves. Whether there has been a material change in relation to a signicant
project must be considered by taking into account all of the relevant circumstances, including the style
of mineralisation. This includes considering whether the change in estimates is likely to have a material
effect on the price or value of the companys securities.
6.
Public Reports are reports prepared for the purpose of informing investors or potential investors
and their advisers on Exploration Results, Mineral Resources or Ore Reserves. They include, but
are not limited to, annual and quarterly company reports, press releases, information memoranda,
technical papers, website postings and public presentations.
These Public Reports may be to the Australian Securities Exchange and the New Zealand Stock
Exchange, or other regulatory authorities or as required by law.
The Code is a required minimum standard for Public Reporting. JORC also recommends its adoption
as a minimum standard for other reporting. Companies are encouraged to provide information in their
Public Reports that is as comprehensive as possible.
The Code applies to other publicly released company information in the form of postings on company
websites and presentation material used in briengs for shareholders, stockbrokers and investment analysts.
The Code also applies to the following reports if they have been prepared for the purposes described
in Clause 6 including but not limited to: environmental statements, information memoranda, expert
reports, and technical papers referring to Exploration Results, Mineral Resources or Ore Reserves.
For companies issuing concise annual reports, inclusion of all material information relating to Exploration
Results, Mineral Resources and Ore Reserves is recommended. In cases where summary information is
presented it should be clearly stated that it is a summary, and a reference attached giving the location of
the Code-compliant Public Reports or Public Reporting on which the summary is based.
It is recognised that companies can be required to issue reports into more than one regulatory jurisdiction,
with compliance standards that may differ from this Code. It is recommended that such reports include a
statement alerting the reader to this situation. Where members of The AusIMM and the AIG are required
to report in other jurisdictions, they are obliged to comply with the requirements of those jurisdictions.
Reference in the Code to documentation is to internal company documents prepared as a basis for, or to
support, a Public Report.
It is recognised that situations may arise where documentation prepared by a Competent Person for internal
company or similar non-public purposes does not comply with the JORC Code. In such situations, it is
recommended that the documentation includes a prominent statement to this effect. This will make it less
likely that non-complying documentation will be used to compile Public Reports, since Clause 9 requires
Public Reports to fairly reect Exploration Results, Mineral Resource and/or Ore Reserve estimates, and
supporting documentation, prepared by a Competent Person.
While every effort has been made within the Code and Guidelines (including Table 1) to cover most
situations likely to be encountered in Public Reporting, there may be occasions when doubt exists as to
the appropriate form of disclosure. On such occasions, users of the Code and those compiling reports to
comply with the Code should be guided by its intent, which is to provide a minimum standard for Public
Reporting, and to ensure that such reporting contains all information that investors and their professional
advisers would reasonably require, and reasonably expect to nd in the report, for the purpose of making
a reasoned and balanced judgement regarding the Exploration Results, Mineral Resources or Ore Reserves
being reported.
The JORC Code is a Code for Public Reporting not a Code that regulates the manner in which a
Competent Person estimates Mineral Resources or Ore Reserves. The term JORC compliant therefore
refers to the manner of reporting not to the estimates. Use of the words JORC compliant to describe
resources or estimates is potentially misleading. The words JORC compliant should be interpreted to
mean: Reported in accordance with the JORC Code and estimated (or based on documentation prepared)
by a Competent Person as dened by the JORC Code.
7.
The Code is applicable to all solid minerals, including diamonds, other gemstones, industrial minerals
and coal, for which Public Reporting of Exploration Results, Mineral Resources and Ore Reserves is
required by the Australian Securities Exchange and the New Zealand Stock Exchange.
The JORC Code is cited by the Code and Guidelines for Technical Assessment and/or Valuation of
Mineral and Petroleum Assets and Mineral and Petroleum Securities for Independent Expert Reports
(the VALMIN Code) as the applicable standard for the Public Reporting of Exploration Results, Mineral
Resources and Ore Reserves. References to technical and economic studies and feasibility studies in
the JORC Code are not intended as references to Technical Assessments or Valuations as dened in the
VALMIN Code.
8.
JORC recognises that further review of the Code and Guidelines will be required from time to time.
Competence and Responsibility

9.
A Public Report concerning a companys Exploration Targets, Exploration Results, Mineral Resources
or Ore Reserves is the responsibility of the company acting through its Board of Directors. Any such
report must be based on, and fairly reect, the information and supporting documentation prepared by
a Competent Person. A company issuing a Public Report shall disclose the name(s) of the Competent
Person, state whether the Competent Person is a full-time employee of the company, and, if not, name
the Competent Persons employer.
Any potential for a conict of interest by the Competent Person or a related party must be disclosed in
accordance with the Transparency principle. Any other relationship of the Competent Person with the
Company making the report must also be disclosed in the Public Report. The report must be issued
with the prior written consent of the Competent Person as to the form and context in which it appears.
Where a company is re-issuing information previously issued with the written consent of the Competent
Person, it must state the original report name, the name(s) of the Competent Person responsible for
the original report, and state the date and reference the location of the original source public report for
public access. In these circumstances the Company is not required to obtain the Competent Persons
prior written consent as to the form and context in which the information appears, provided:
s The company conrms in the subsequent public presentation that it is not aware of any new information or data that materially affects the information included in the relevant market announcement. In the case of estimates of Mineral Resources or Ore Reserves, the company conrms that all
material assumptions and technical parameters underpinning the estimates in the relevant market
announcement continue to apply and have not materially changed.
s The company conrms that the form and context in which the Competent Persons ndings are
presented have not been materially modied. Note that for the subsequent public presentation it
is the responsibility of the company acting through its Board of Directors to ensure the form and
context has not been materially altered.
This relaxation of the requirement to obtain the Competent Persons prior written consent does not
apply to the requirements for annual reporting of Mineral Resources and Ore Reserves contained in
Clause 15.
All such public disclosure should be specically reviewed by the company to ensure that the form and
context in which the Competent Persons ndings are presented have not been materially modied, and to
ensure that the previously issued Exploration Results, Mineral Resources or Ore Reserve remain valid in
the light of any more recently-acquired data.
Examples of appropriate forms of compliance statements are provided in Appendix 3.
In order to assist Competent Persons and companies to comply with these requirements a Competent
Persons Consent Form has been devised that incorporates the requirements of the Code. The Competent
Persons Consent Form is provided in Appendix 2.
The completion of a consent form, whether in the format provided or in an equivalent form, is
recommended as good practice and provides readily available evidence that the required prior consent has
been obtained.
The Competent Persons Consent Form(s), or other evidence of the Competent Persons written consent,
should be retained by the company and the Competent Person to ensure that the written consent can be
promptly provided if required.
10. Documentation detailing Exploration Results, Mineral Resource and Ore Reserve estimates, on which a
Public Report on Exploration Results, Mineral Resources and Ore Reserves is based, must be prepared
by, or under the direction of, and signed by, a Competent Person. If an Exploration Target is included
in a Public Report, documentation must also be prepared by, or under the direction of, and signed
by, a Competent Person. The documentation must provide a fair representation of the matters being
reported.
11. A Competent Person is a minerals industry professional who is a Member or Fellow of The
Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists,
or of a Recognised Professional Organisation (RPO), as included in a list available on the JORC
and ASX websites. These organisations have enforceable disciplinary processes including the
powers to suspend or expel a member.
A Competent Person must have a minimum of ve years relevant experience in the style of
mineralisation or type of deposit under consideration and in the activity which that person is
undertaking.
If the Competent Person is preparing documentation on Exploration Results, the relevant
experience must be in exploration. If the Competent Person is estimating, or supervising the
estimation of Mineral Resources, the relevant experience must be in the estimation, assessment
and evaluation of Mineral Resources. If the Competent Person is estimating, or supervising
the estimation of Ore Reserves, the relevant experience must be in the estimation, assessment,
evaluation and economic extraction of Ore Reserves.
The key qualier in the denition of a Competent Person is the word relevant. Determination of what
constitutes relevant experience can be a difcult area and common sense has to be exercised. For example,
in estimating Mineral Resources for vein gold mineralisation, experience in a high-nugget, vein-type
mineralisation (such as tin, uranium, etc) may be relevant, whereas experience in (say) massive base
metal deposits may not be. As a second example, to qualify as a Competent Person in the estimation of
Ore Reserves for alluvial gold deposits, considerable (at least ve years) experience in the evaluation and
economic extraction of this type of mineralisation may be needed. This is due to the properties of gold in
alluvial systems, the particle sizing of the host sediment, and the low grades involved. Experience with
placer deposits containing minerals other than gold may not necessarily provide appropriate relevant
experience.
The key word relevant also means that it is not always necessary for a person to have ve years experience
in each and every type of deposit to act as a Competent Person if that person has relevant experience in
other deposit types. For example, a person with (say) 20 years experience in estimating Mineral Resources
for a variety of metalliferous hard-rock deposit types may not require ve years specic experience in (say)
porphyry copper deposits to act as a Competent Person. Relevant experience in the other deposit types could
count towards the required experience in relation to porphyry copper deposits.
In addition to experience in the style of mineralisation, a Competent Person taking responsibility for the
compilation of Exploration Results or Mineral Resource estimates should have sufcient experience in the
sampling and analytical techniques relevant to the deposit under consideration to be aware of problems
that could affect the reliability of data. Some appreciation of extraction and processing techniques
applicable to that deposit type may also be important.
As a general guide, a person being called upon to act as Competent Person should be clearly satised in
their own mind that they could face their peers and demonstrate competence in the commodity, type of
deposit and situation under consideration. If doubt exists, the person should either seek opinions from
appropriately experienced peers or should decline to act as a Competent Person.
Estimation of Mineral Resources may be a team effort (for example, involving one person or team collecting
the data and another person or team preparing the estimate). Estimation of Ore Reserves is very commonly
a team effort involving several technical disciplines. It is recommended that, where there is clear division
of responsibility within a team, each Competent Person and his or her contribution should be identied,
and responsibility accepted for that particular contribution. If only one Competent Person signs the Mineral
Resource or Ore Reserve documentation, that person is responsible and accountable for the whole of the
documentation under the Code. It is important in this situation that the Competent Person accepting overall
responsibility for a Mineral Resource or Ore Reserve estimate and supporting documentation prepared in
whole or in part by others, is satised that the work of the other contributors is acceptable.
Complaints made with respect to the professional work of a Competent Person will be dealt with under
the disciplinary procedures of the professional organisation to which the Competent Person belongs.
When an Australian Securities Exchange or New Zealand Stock Exchange listed company with overseas
interests wishes to report overseas Exploration Results, Mineral Resource or Ore Reserve estimates prepared
by a person who is not a member of The AusIMM, the AIG or a RPO, it is necessary for the company
to nominate a Competent Person or Persons to take responsibility for the Exploration Results, Mineral
Resource or Ore Reserve estimate. The Competent Person undertaking this activity should appreciate that
they are accepting full responsibility for the estimate and supporting documentation under Australian
Securities Exchange and/or the New Zealand Stock Exchange listing rules and should not treat the
procedure merely as a rubber-stamping exercise.
Reporting Terminology
12. Public Reports dealing with Exploration Results, Mineral Resources or Ore Reserves must only use the
terms set out in Figure 1.
Figure 1 sets out the framework for classifying tonnage and grade estimates to reect different levels
of geological condence and different degrees of technical and economic evaluation. Mineral Resources
can be estimated on the basis of geoscientic information with some input from other disciplines. Ore
Reserves, which are a modied sub-set of the Indicated and Measured Mineral Resources (shown within
the dashed outline in Figure 1), require consideration of the Modifying Factors affecting extraction, and
should in most instances be estimated with input from a range of disciplines.
Modifying Factors are considerations used to convert Mineral Resources to Ore Reserves. These
include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic,
marketing, legal, environmental, social and governmental factors.
Measured Mineral Resources may be converted to either Proved Ore Reserves or Probable Ore Reserves.
The Competent Person may convert Measured Mineral Resources to Probable Ore Reserves because of
uncertainties associated with some or all of the Modifying Factors which are taken into account in the
conversion from Mineral Resources to Ore Reserves. This relationship is shown by the broken arrow in
Figure 1. Although the trend of the broken arrow includes a vertical component, it does not, in this
instance, imply a reduction in the level of geological knowledge or condence. In such a situation these
Modifying Factors should be fully explained.
Refer also to the guidelines to Clause 32.
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Reporting General
13. Public Reports concerning a companys Exploration Results, Mineral Resources or Ore Reserves must
include a description of the style and nature of the mineralisation.
14. A company must disclose all relevant information concerning Exploration Results, Mineral Resources or
Ore Reserves that could materially inuence the economic value of those Exploration Results, Mineral
Resources or Ore Reserves to the company. A company must promptly report any material changes in
its Mineral Resources or Ore Reserves.
15. Companies must review and publically report their Mineral Resources and Ore Reserves annually. The
annual review date must be nominated by the Company in its Public Reports of Mineral Resources
and Ore Reserves and the effective date of each Mineral Resource and Ore Reserve statement must be
shown. The Company must discuss any material changes to previously reported Mineral Resources and
Ore Reserves at the time of publishing updated Mineral Resources and Ore Reserves.
16. Throughout the Code, if appropriate, quality may be substituted for grade and volume may be
substituted for tonnage. (Refer to Appendix 1 Generic Terms and Equivalents.)
17. It is recognised that it is common practice for a company to comment on and discuss its exploration
in terms of target size and type. However, any such comment in a Public Report must comply with the
following requirements.
An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit
in a dened geological setting where the statement or estimate, quoted as a range of tonnes
and a range of grade (or quality), relates to mineralisation for which there has been insufcient
exploration to estimate a Mineral Resource.
Any such information relating to an Exploration Target must be expressed so that it cannot be
misrepresented or misconstrued as an estimate of a Mineral Resource or Ore Reserve. The terms
Resource or Reserve must not be used in this context. In any statement referring to potential quantity
and grade of the target, these must both be expressed as ranges and must include:
s a detailed explanation of the basis for the statement, including specic description of the level of
exploration activity already completed, and
s a clarication statement within the same paragraph as the rst reference of the Exploration Target
in the Public Report, stating that the potential quantity and grade is conceptual in nature, that
there has been insufcient exploration to estimate a Mineral Resource and that it is uncertain if
further exploration will result in the estimation of a Mineral Resource.
Given the level of uncertainty surrounding the supporting data, an Exploration Target tonnage or grade
must not be reported as a headline statement in a Public Report.
If a Public Report includes an Exploration Target the proposed exploration activities designed to test
the validity of the exploration target must be detailed and the timeframe within which those activities
are expected to be completed must be specied.
If an Exploration Target is shown pictorially (for instance as cross sections or maps) or with a graph, it
must be accompanied by text that meets the requirements above.
A Public Report that includes an Exploration Target must be accompanied by a Competent Person
statement taking responsibility for the form and context in which the Exploration Target appears.
All disclosures of an Exploration Target must clarify whether the target is based on actual Exploration
Results or on proposed exploration programmes. Where the Exploration Target statement includes
information relating to ranges of tonnages and grades these must be represented as approximations.
The explanatory text must include a description of the process used to determine the grade and tonnage
ranges used to describe the Exploration Target.
For an Exploration Target based on Exploration Results, a summary of the relevant exploration data
available and the nature of the results should also be stated, including a disclosure of the current drill hole
or sampling spacing and relevant plans or sections. In any subsequent upgraded or modied statements
on the Exploration Target, the Competent Person should discuss any material changes to potential scale or
quality arising from completed exploration activities.
Reporting of Exploration Results

18. Exploration Results include data and information generated by mineral exploration programmes
that might be of use to investors but which do not form part of a declaration of Mineral Resources
or Ore Reserves.
The reporting of such information is common in the early stages of exploration when the quantity of
data available is generally not sufcient to allow any reasonable estimates of Mineral Resources.
If a company reports Exploration Results in relation to mineralisation not classied as a Mineral
Resource or an Ore Reserve, then estimates of tonnages and average grade must not be assigned to the
mineralisation unless the situation is covered by Clause 17, and then only in strict accordance with the
requirements of that Clause.
Examples of Exploration Results include results of outcrop sampling, assays of drill hole intersections,
geochemical results and geophysical survey results.
19. Public Reports of Exploration Results must contain sufcient information to allow a considered and
balanced judgement of their signicance. Reports must include relevant information such as exploration
context, type and method of sampling, relevant sample intervals and locations, distribution, dimensions
and relative location of all relevant assay data, methods of analysis, data aggregation methods, land
tenure status plus information on any of the other criteria listed in Table 1 that are material to an
assessment.
Public Reports of Exploration Results must not be presented so as to unreasonably imply that potentially
economic mineralisation has been discovered. If true widths of mineralisation are not reported, an
appropriate qualication must be included in the Public Report.
10
Where assay and analytical results are reported, they must be reported using one of the following
methods, selected as the most appropriate by the Competent Person:
s either by listing all results, along with sample intervals (or size, in the case of bulk samples), or
s by reporting weighted average grades of mineralised zones, indicating clearly how the grades were
calculated.
Clear diagrams and maps designed to represent the geological context must be included in the report.
These must include, but not be limited to a plan view of drill hole collar locations and appropriate
sectional views.
Reporting of selected information such as isolated assays, isolated drill holes, assays of panned concentrates
or supergene enriched soils or surface samples, without placing them in perspective is unacceptable.
While it is not necessary to report all assays or drill holes, it is a requirement that sufcient information
about the omitted data is provided so that a considered and balanced judgement can be made by the
reader of the report. Where reports of Exploration Results do not include all drill holes or all intersections
of drill holes the Competent Person must provide an explanation of why this information is not considered
relevant or why it has not been provided.
As required under Clauses 4 and 5, the Competent Person must not remain silent on any issue for
which the presence or absence of comment could impact the public perception or value of the mineral
occurrence. For signicant projects the reporting of all criteria in sections 1 and 2 of Table 1 on an if
not, why not basis is required, preferably as an appendix to the Public Report. Additional disclosure
is particularly important where inadequate or uncertain data affect the reliability of, or condence
in, a statement of Exploration Results; for example, poor sample recovery, poor repeatability of assay or
laboratory results, etc.
Reporting of Mineral Resources

20. A Mineral Resource is a concentration or occurrence of solid material of economic interest in
or on the Earths crust in such form, grade (or quality), and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity
and other geological characteristics of a Mineral Resource are known, estimated or interpreted
from specic geological evidence and knowledge, including sampling. Mineral Resources are
sub-divided, in order of increasing geological condence, into Inferred, Indicated and Measured
categories.
All reports of Mineral Resources must satisfy the requirement that there are reasonable prospects for
eventual economic extraction (ie more likely than not), regardless of the classication of the resource.
Portions of a deposit that do not have reasonable prospects for eventual economic extraction must
not be included in a Mineral Resource. The basis for the reasonable prospects assumption is always a
material matter, and must be explicitly disclosed and discussed by the Competent Person within the
Public Report using the criteria listed in Table 1 for guidance. The reasonable prospects disclosure must
also include a discussion of the technical and economic support for the cut-off assumptions applied.
Where untested practices are applied in the determination of reasonable prospects, the use of the
proposed practices for reporting of the Mineral Resource must be justied by the Competent Person in
the Public Report.
Geological evidence and knowledge required for the estimation of Mineral Resources must include
sampling data of a type, and at spacings, appropriate to the geological, chemical, physical, and
mineralogical complexity of the mineral occurrence, for all classications of Inferred, Indicated and
Measured Mineral Resources. A Mineral Resource cannot be estimated in the absence of sampling
information.
11
The term Mineral Resource covers mineralisation, including dumps and tailings, which has been
identied and estimated through exploration and sampling and within which Ore Reserves may be
dened by the consideration and application of the Modifying Factors.
The term reasonable prospects for eventual economic extraction implies an assessment (albeit preliminary)
by the Competent Person in respect of all matters likely to inuence the prospect of economic extraction
including the approximate mining parameters. In other words, a Mineral Resource is not an inventory
of all mineralisation drilled or sampled, regardless of cut-off grade, likely mining dimensions location or
continuity. It is a realistic inventory of mineralisation which, under assumed and justiable technical,
economic and development conditions, might, in whole or in part, become economically extractable.
Where considered appropriate by the Competent Person, Mineral Resource estimates may include material
below the selected cut-off grade to ensure that the Mineral Resources comprise bodies of mineralisation of
adequate size and continuity to properly consider the most appropriate approach to mining. Documentation
of Mineral Resource estimates should clearly identify any diluting material included and Public Reports
should include commentary on the matter if considered material.
Interpretation of the word eventual in this context may vary depending on the commodity or mineral
involved. For example, for some coal, iron ore, bauxite and other bulk minerals or commodities, it may
be reasonable to envisage eventual economic extraction as covering time periods in excess of 50 years.
However for the majority of smaller deposits, application of the concept would normally be restricted to
perhaps 10 to 15 years, and frequently to much shorter periods of time. In all cases, the considered time
frame should be disclosed and discussed by the Competent Person.
Any adjustment made to the data for the purpose of making the Mineral Resource estimate, for example
by cutting or factoring grades, should be clearly stated and described in the Public Report.
Certain reports (eg inventory coal reports, exploration reports to government and other similar reports not
intended primarily for providing information for investment purposes) may require full disclosure of all
mineralisation, including some material that does not have reasonable prospects for eventual economic
extraction. Such estimates of mineralisation would not qualify as Mineral Resources or Ore Reserves in
terms of the JORC Code (refer also to the guidelines to Clauses 6 and 42).
21. An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade
(or quality) are estimated on the basis of limited geological evidence and sampling. Geological
evidence is sufcient to imply but not verify geological and grade (or quality) continuity. It is
based on exploration, sampling and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill holes.
An Inferred Mineral Resource has a lower level of condence than that applying to an Indicated
Mineral Resource and must not be converted to an Ore Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with
continued exploration.
Where the Mineral Resource being reported is predominantly an Inferred Mineral Resource, sufcient
supporting information must be provided to enable the reader to evaluate and assess the risk associated
with the reported Mineral Resource.
In circumstances where the estimation of the Inferred Mineral Resource is presented on the basis of
extrapolation beyond the nominal sampling spacing and taking into account the style of mineralisation,
the report must contain sufcient information to inform the reader of:
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12
the maximum distance that the resource is extrapolated beyond the sample points
the proportion of the resource that is based on extrapolated data
the basis on which the resource is extrapolated to these limits
a diagrammatic representation of the Inferred Mineral Resource showing clearly the extrapolated
part of the estimated resource.
The Inferred category is intended to cover situations where a mineral concentration or occurrence has
been identied and limited measurements and sampling completed, but where the data are insufcient
to allow the geological and grade continuity to be condently interpreted. While it would be reasonable to
expect that the majority of Inferred Mineral Resources would upgrade to Indicated Mineral Resources with
continued exploration, due to the uncertainty of Inferred Mineral Resources, it should not be assumed
that such upgrading will always occur.
Condence in the estimate of Inferred Mineral Resources is not sufcient to allow the results of the
application of technical and economic parameters to be used for detailed planning in Pre-Feasibility
(Clause 39) or Feasibility (Clause 40) Studies. For this reason, there is no direct link from an Inferred
Mineral Resource to any category of Ore Reserves (see Figure 1).
Caution should be exercised if Inferred Mineral Resources are used to support technical and economic
studies such as Scoping Studies (refer to Clause 38).
22. An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade (or
quality), densities, shape and physical characteristics are estimated with sufcient condence
to allow the application of Modifying Factors in sufcient detail to support mine planning and
evaluation of the economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable exploration, sampling and
testing gathered through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes, and is sufcient to assume geological and grade (or quality) continuity
between points of observation where data and samples are gathered.
An Indicated Mineral Resource has a lower level of condence than that applying to a Measured
Mineral Resource and may only be converted to a Probable Ore Reserve.
Mineralisation may be classied as an Indicated Mineral Resource when the nature, quality, amount
and distribution of data are such as to allow condent interpretation of the geological framework and to
assume continuity of mineralisation.
Condence in the estimate is sufcient to allow application of Modifying Factors within a technical and
economic study as dened in Clauses 37 to 40.
23. A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade (or
quality), densities, shape, and physical characteristics are estimated with condence sufcient to
allow the application of Modifying Factors to support detailed mine planning and nal evaluation
of the economic viability of the deposit.
Geological evidence is derived from detailed and reliable exploration, sampling and testing
gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings
and drill holes, and is sufcient to conrm geological and grade (or quality) continuity between
points of observation where data and samples are gathered.
A Measured Mineral Resource has a higher level of condence than that applying to either an
Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proved Ore
Reserve or under certain circumstances to a Probable Ore Reserve.
Mineralisation may be classied as a Measured Mineral Resource when the nature, quality, amount and
distribution of data are such as to leave no reasonable doubt, in the opinion of the Competent Person
determining the Mineral Resource, that the tonnage and grade of the mineralisation can be estimated
to within close limits, and that any variation from the estimate would be unlikely to signicantly affect
potential economic viability.
This category requires a high level of condence in, and understanding of, the geological properties and
controls of the mineral deposit.
Condence in the estimate is sufcient to allow application of Modifying Factors within a technical and
economic study as dened in Clauses 37 to 40.
13
Depending upon the level of condence in the various Modifying Factors it may be converted to a
Proved Ore Reserve (high condence in Modifying Factors), Probable Ore Reserve (some uncertainty in
Modifying Factors) or may not be converted at all (low or no condence in some of the Modifying Factors;
or no plan to mine, eg pillars in an underground mine or outside economic pit limits).
24. The choice of the appropriate category of Mineral Resource depends upon the quantity, distribution
and quality of data available and the level of condence that attaches to those data. The appropriate
Mineral Resource category must be determined by a Competent Person.
Mineral Resource classication is a matter for skilled judgement and a Competent Person should take into
account those items in Table 1 that relate to condence in Mineral Resource estimation.
In deciding between Measured Mineral Resources and Indicated Mineral Resources, Competent Persons
may nd it useful to consider, in addition to the phrases in the two denitions relating to geological and
grade continuity in Clauses 22 and 23, the phrase in the guideline to the denition for Measured Mineral
Resources: ... any variation from the estimate would be unlikely to signicantly affect potential economic
viability.
In deciding between Indicated Mineral Resources and Inferred Mineral Resources, Competent Persons
may wish to take into account, in addition to the phrases in the two denitions in Clauses 21 and 22
relating to geological and grade continuity, that part of the denition for Indicated Mineral Resources:
sufcient condence to allow the application of Modifying Factors in sufcient detail to
support mine planning and evaluation of the economic viability of the deposit, which contrasts
with the guideline to the denition for Inferred Mineral Resources: Condence in the estimate of Inferred
Mineral Resources is not sufcient to allow the results of the application of technical and economic
parameters to be used for detailed planning in Pre-Feasibility (Clause 39) or Feasibility (Clause 40)
Studies and Caution should be exercised if Inferred Mineral Resources are used to support technical and
economic studies such as Scoping Studies (refer to Clause 38).
The Competent Person should take into consideration issues of the style of mineralisation and cut-off
grade when assessing geological and grade continuity for the purposes of classifying the resource.
Cut-off grades chosen for the estimation should be realistic in relation to the style of mineralisation and
the anticipated mining and processing development options.
25. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited
information on the location, shape and continuity of the occurrence and on the available sampling
results. Reporting of tonnage and grade gures should reect the relative uncertainty of the estimate
by rounding off to appropriately signicant gures and, in the case of Inferred Mineral Resources, by
qualication with terms such as approximately and to emphasise the imprecise nature of a Mineral
Resource, the nal result should always be referred to as an estimate not a calculation.
In most situations, rounding to the second signicant gure should be sufcient. For example 10,863,000
tonnes at 8.23 per cent should be stated as 11 million tonnes at 8.2 per cent. There will be occasions,
however, where rounding to the rst signicant gure may be necessary in order to convey properly the
uncertainties in estimation. This would usually be the case with Inferred Mineral Resources.
Competent Persons are encouraged, where appropriate, to discuss the relative accuracy and condence
level of the Mineral Resource estimates with consideration of at least sampling, analytical and estimation
errors. The statement should specify whether it relates to global or local estimates, and, if local, state
the relevant tonnage. Where a statement of the relative accuracy and condence level is not possible, a
qualitative discussion of the uncertainties should be provided in its place (refer to Table 1).
26. Public Reports of Mineral Resources must specify one or more of the categories of Inferred, Indicated
and Measured. Categories must not be reported in a combined form unless details for the individual
categories are also provided. Mineral Resources must not be reported in terms of contained metal or
mineral content unless corresponding tonnages and grades are also presented.
14
Mineral Resources must not be aggregated with Ore Reserves.

Public Reporting of tonnages and grades outside the categories covered by the Code is not permitted
unless the situation is covered by Clause 17, and then only in strict accordance with the requirements
of that Clause.
Estimates of tonnage and grade outside of the categories covered by the Code may be useful for a company
in its internal calculations and evaluation processes, but their inclusion in Public Reports is not permitted.
27. In a Public Report of a Mineral Resource for a signicant project for the rst time, or when those
estimates have materially changed from when they were last reported, a brief summary of the information
in relevant sections of Table 1 must be provided or, if a particular criterion is not relevant or material,
a disclosure that it is not relevant or material and a brief explanation of why this is the case must be
provided.
For a signicant project, when Mineral Resource estimates are rst Publicly Reported or when a
material change occurs (including classication changes), there is an increased need for transparent
discussion of the basis for the new Mineral Resource estimate in order that investors are appropriately
informed of the basis for the changes. As noted in Clauses 4 and 5 the benchmark of Materiality is
that which an investor or their advisers would reasonably expect to see explicit comment on from the
Competent Person, thus the reporting of all relevant criteria in Table 1 on an if not, why not basis
is required.
The Code species reporting against relevant sections of Table 1 in this Clause. This may be satised by
reporting against section 3 on the presumption that matters related to sections 1 and 2 will already have
been included in a still current Public Report and this Report can be referenced. If this is not the case then
these sections are also relevant and should be included in the Public Report.
The technical summary based against Table 1 criteria should be presented as an appendix to the Public
Report.
Where there are as yet unresolved issues potentially impacting the reliability of, or condence in, a statement
of Mineral Resources (for example, poor sample recovery, poor repeatability of assay or laboratory results,
limited information on bulk densities, etc) those unresolved issues should also be reported.
If there is doubt about what should be reported, it is better to err on the side of providing too much
information rather than too little.
Uncertainties in any of the criteria listed in Table 1 that could lead to under- or over-statement of
Mineral Resources should be disclosed.
Mineral Resource estimates are sometimes reported after adjustment from reconciliation with production
data. Such adjustments should be clearly stated in a Public Report of Mineral Resources and the nature
of the adjustment or modication described.
28. The words ore and reserves must not be used in describing Mineral Resource estimates as the
terms imply technical feasibility and economic viability and are only appropriate when all relevant
Modifying Factors have been considered. Reports and statements should continue to refer to the
appropriate category or categories of Mineral Resources until technical feasibility and economic
viability have been established. If re-evaluation indicates that the Ore Reserves are no longer viable,
the Ore Reserves must be reclassied as Mineral Resources or removed from Mineral Resource/Ore
Reserve statements.
It is not intended that re-classication from Ore Reserves to Mineral Resources or vice versa should be
applied as a result of changes expected to be of a short term or temporary nature, or where company
management has made a deliberate decision to operate on a non-economic basis. Examples of such
situations might be commodity price uctuations expected to be of short duration, mine emergency of a
non-permanent nature, transport strike, etc.
15
Reporting of Ore Reserves

29. An Ore Reserve is the economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses, which may occur when the
material is mined or extracted and is dened by studies at Pre-Feasibility or Feasibility level as
appropriate that include application of Modifying Factors. Such studies demonstrate that, at the
time of reporting, extraction could reasonably be justied.
The reference point at which Reserves are dened, usually the point where the ore is delivered
to the processing plant, must be stated. It is important that, in all situations where the reference
point is different, such as for a saleable product, a clarifying statement is included to ensure that
the reader is fully informed as to what is being reported.
The key underlying assumptions and outcomes of the Pre-Feasibility Study or Feasibility Study must be
disclosed at the time of reporting of a new or materially changed Ore Reserve.
Pre-Feasibility and Feasibility Studies are dened in Clauses 39 and 40 below.
Ore Reserves are sub-divided in order of increasing condence into Probable Ore Reserves and Proved
Ore Reserves.
In reporting Ore Reserves, information on estimated mineral processing recovery factors is very
important, and should always be included in Public Reports.
Ore Reserves are those portions of Mineral Resources that, after the application of all Modifying Factors,
result in an estimated tonnage and grade which, in the opinion of the Competent Person making the
estimates, can be the basis of a technically and economically viable project, after taking account of material
relevant Modifying Factors. Deriving an Ore Reserve without a mine design or mine plan through a
process of factoring of the Mineral Resource is unacceptable.
Ore Reserves are reported as inclusive of marginally economic material and diluting material delivered
for treatment or dispatched from the mine without treatment.
The term economically mineable implies that extraction of the Ore Reserves has been demonstrated to be
viable under reasonable nancial assumptions. This will vary with the type of deposit, the level of study
that has been carried out and the nancial criteria of the individual company. For this reason, there can
be no xed denition for the term economically mineable.
In order to achieve the required level of condence in the Modifying Factors, appropriate Feasibility or
Pre-Feasibility level studies will have been carried out prior to determination of the Ore Reserves. The
studies will have determined a mine plan and production schedule that is technically achievable and
economically viable and from which the Ore Reserves can be derived.
The term Ore Reserves need not necessarily signify that extraction facilities are in place or operative, or
that all necessary approvals or sales contracts have been received. It does signify that there are reasonable
grounds to expect that such approvals or contracts will eventuate within the anticipated time frame
required by the mine plans. There must be reasonable grounds to expect that all necessary Government
approvals will be received. The Competent Person should highlight and discuss any material unresolved
matter that is dependent on a third party on which extraction is contingent.
Any adjustment made to the data for the purpose of making the Ore Reserve estimate, for example by
cutting or factoring grades, should be clearly stated and described in the Public Report.
Where companies prefer to use the term Mineral Reserves in their Public Reports, eg for reporting
industrial minerals or for reporting outside Australasia, they should state clearly that this is being used
with the same meaning as Ore Reserves, dened in this Code. If preferred by the reporting company,
16
Ore Reserve and Mineral Resource estimates for coal may be reported as Coal Reserve and Coal
Resource estimates.
JORC prefers the term Ore Reserve because it assists in maintaining a clear distinction between a Mineral
Resource and an Ore Reserve, whereas other codes feel it is better to reference Mineral Exploration
Results, Mineral Resources and Mineral Reserves.
30. A Probable Ore Reserve is the economically mineable part of an Indicated, and in some
circumstances, a Measured Mineral Resource. The condence in the Modifying Factors applying
to a Probable Ore Reserve is lower than that applying to a Proved Ore Reserve.
Consideration of the condence level of the Modifying Factors is important in conversion of Mineral
Resources to Ore Reserves.
A Probable Ore Reserve has a lower level of condence than a Proved Ore Reserve but is of sufcient
quality to serve as the basis for a decision on the development of the deposit.
31. A Proved Ore Reserve is the economically mineable part of a Measured Mineral Resource. A
Proved Ore Reserve implies a high degree of condence in the Modifying Factors.
A Proved Ore Reserve represents the highest condence category of reserve estimate and implies a high
degree of condence in geological and grade continuity, and the consideration of the Modifying Factors.
The style of mineralisation or other factors could mean that Proved Ore Reserves are not achievable in
some deposits.
32. The choice of the appropriate category of Ore Reserve is determined primarily by the relevant level of
condence in the Mineral Resource and after considering any uncertainties in the consideration of the
Modifying Factors. Allocation of the appropriate category must be made by a Competent Person.
The Code provides for a direct two-way relationship between Indicated Mineral Resources and Probable
Ore Reserves and between Measured Mineral Resources and Proved Ore Reserves. In other words, the
level of geological condence for Probable Ore Reserves is similar to that required for the determination
of Indicated Mineral Resources, and the level of geological condence for Proved Ore Reserves is similar
to that required for the determination of Measured Mineral Resources.
The Code also provides for a two-way relationship between Measured Mineral Resources and Probable
Ore Reserves. This is to cover a situation where uncertainties associated with any of the Modifying Factors
considered when converting Mineral Resources to Ore Reserves may result in there being a lower degree
of condence in the Ore Reserves than in the corresponding Mineral Resources. Such a conversion would
not imply a reduction in the level of geological knowledge or condence.
A Probable Ore Reserve derived from a Measured Mineral Resource may be converted to a Proved Ore
Reserve if the uncertainties in the Modifying Factors are removed. No amount of condence in the
Modifying Factors for conversion of a Mineral Resource to an Ore Reserve can override the upper level
of condence that exists in the Mineral Resource. Under no circumstances can an Indicated Mineral
Resource be converted directly to a Proved Ore Reserve (see Figure 1).
Application of the category of Proved Ore Reserve implies the highest degree of geological, technical and
economic condence in the estimate at the level of production increments used to support mine planning
and production scheduling, with consequent expectations in the minds of the readers of the report. These
expectations should be considered when categorising a Mineral Resource as Measured.
Refer also to the guidelines in Clause 24 regarding classication of Mineral Resources.
33. Ore Reserve estimates are not precise calculations. Reporting of tonnage and grade estimates should
reect the relative uncertainty of the estimate by rounding off to appropriately signicant gures. Refer
also to Clause 25.
To emphasise the imprecise nature of an Ore Reserve, the nal result should always be referred to as an
estimate and not a calculation.
17
Competent Persons are encouraged, where appropriate, to discuss the relative accuracy and condence
level of the Ore Reserve estimates with consideration of both underlying estimation and Modifying Factor
uncertainties. The statement should specify whether it relates to global or local estimates, and, if local,
state the relevant tonnage. Where a statement of the relative accuracy and condence level is not possible,
a qualitative discussion of the uncertainties should be provided in its place (refer to Table 1).
34. Public Reports of Ore Reserves must specify one or other or both of the categories of Proved and
Probable. Reports must not contain combined Proved and Probable Ore Reserve gures unless the
relevant gures for each of the categories are also provided. Reports must not present metal or mineral
content gures unless corresponding tonnage and grade gures are also given.
Public Reporting of tonnage and grade outside the categories covered by the Code is not permitted
unless the situation is covered by Clause 17, and then only in strict accordance with the requirements
of that Clause.
Estimates of tonnage and grade outside of the categories covered by the Code may be useful for a company
in its internal calculations and evaluation processes, but their inclusion in Public Reports could cause
confusion, and is not permitted.
Ore Reserves may incorporate material (dilution) that is not part of the original Mineral Resource. It is
essential that this fundamental difference between Mineral Resources and Ore Reserves is considered and
caution exercised if attempting to draw conclusions from a comparison of the two.
When revised Ore Reserve and Mineral Resource statements are publicly reported, the Company must
discuss any material changes from the previous estimate, and supply sufcient comment to enable the basis
for signicant changes to be understood by the reader.
35. In a Public Report of an Ore Reserve estimate for a signicant project for the rst time, or when
those estimates have materially changed from when they were last reported, a brief summary of the
information in relevant sections of Table 1 must be provided or, if a particular criterion is not relevant
or material, a disclosure that it is not relevant or material and a brief explanation of why this is the case
must be provided.
For a signicant project, when Ore Reserve estimates are rst Publicly Reported or when a material
change occurs (including classication changes), there is an increased need for transparent discussion of
the basis for the new Ore Reserve estimate in order that investors are appropriately informed of the basis
for the changes. As noted in Clauses 4 and 5 the benchmark of Materiality is that which an investor or
their advisers would reasonably expect to see explicit comment on from the Competent Person, thus the
reporting of all criteria in Table 1 on an if not, why not basis is required.
The Code species reporting against relevant sections of Table 1 in this Clause. This may be satised by
reporting against section 4 on the presumption that matters related to sections 1, 2 and 3 will already
have been included in a still current Public Report and this Report can be referenced. If this is not the case
then these sections are also relevant and should be included in the Public Report.
The Technical summary based against Table 1 criteria should be presented as an appendix to the Public
Report.
Where there are as yet unresolved issues potentially impacting the reliability of, or condence in, a
statement of Ore Reserves (for example, limited geotechnical information, complex orebody metallurgy,
uncertainty in the permitting process, etc) those unresolved issues should also be reported.
Uncertainties in any of the criteria listed in Table 1 that could lead to under- or over- statement of Ore
Reserves should be disclosed.
18
Ore Reserve estimates are sometimes reported after adjustment from reconciliation with production data.
Such adjustments should be clearly stated in a Public Report of Ore Reserves and the nature of the
adjustment or modication described.
36. In situations where gures for both Mineral Resources and Ore Reserves are reported, a statement must
be included in the report which clearly indicates whether the Mineral Resources are inclusive of, or
additional to the Ore Reserves.
Ore Reserve estimates must not be aggregated with Mineral Resource estimates to report a single
combined gure.
In some situations there are reasons for reporting Mineral Resources inclusive of Ore Reserves and in other
situations for reporting Mineral Resources additional to Ore Reserves. It must be made clear which form
of reporting has been adopted. Appropriate forms of clarifying statements may be:
s The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modied
to produce the Ore Reserves. or
s The Measured and Indicated Mineral Resources are additional to the Ore Reserves.
In the former case, if any Measured and Indicated Mineral Resources have not been modied to produce
Ore Reserves for economic or other reasons, the relevant details of these unmodied Mineral Resources
should be included in the report. This is to assist the reader of the report in making a judgement of the
likelihood of the unmodied Measured and Indicated Mineral Resources eventually being converted to
Ore Reserves.
Inferred Mineral Resources are by denition generally additional to Ore Reserves except where included
as dilution in the Ore Reserves.
For reasons stated in the guidelines to Clause 34 and in this paragraph, the reported Ore Reserve estimates
must not be aggregated with the reported Mineral Resource estimates (eg in graphs, gures or tables). The
resulting total is misleading and is capable of being misunderstood or of being misused to give a false
impression of a companys prospects.
Technical Studies
37. These denitions are included in the Code to provide clarity on what is expected when reporting using
these terms. The denition of a Scoping Study has been included because of the common usage of the
term in Public Reports. However attention is drawn to the requirement for a Pre-Feasibility Study or a
Feasibility study to have been completed for the Public Reporting of an Ore Reserve in Clause 29. An
Ore Reserve must not be reported based on the completion of a Scoping Study.
38. A Scoping Study is an order of magnitude technical and economic study of the potential viability
of Mineral Resources. It includes appropriate assessments of realistically assumed Modifying
Factors together with any other relevant operational factors that are necessary to demonstrate at
the time of reporting that progress to a Pre-Feasibility Study can be reasonably justied.
A Scoping Study must not be used as the basis for estimation of Ore Reserves.
If the outcome of a Scoping Study is partially supported by Inferred Mineral Resources and/or an
Exploration Target, the Public Report must state both the proportion and relative sequencing of the
Inferred Mineral Resources and/or an Exploration Target within the Scoping Study.
For all Scoping Studies, the entity must include a cautionary statement in the same paragraph as, or
immediately following, the disclosure of the Scoping Study.
An example cautionary statement follows:
The Scoping Study referred to in this report is based on low-level technical and economic assessments, and
is insufcient to support estimation of Ore Reserves or to provide assurance of an economic development
case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised.
19
In discussing reasonable prospects for eventual economic extraction in Clause 20, the Code requires
an assessment (albeit preliminary) in respect of all matters likely to inuence the prospect of economic
extraction including the approximate mining parameters by the Competent Person. While a Scoping
Study may provide the basis for that assessment, the Code does not require a Scoping Study to have been
completed to report a Mineral Resource.
Scoping Studies are commonly the rst economic evaluation of a project undertaken and may be based on
a combination of directly gathered project data together with assumptions borrowed from similar deposits
or operations to the case envisaged. They are also commonly used internally by companies for comparative
and planning purposes. Reporting the general results of a Scoping Study needs to be undertaken with care
to ensure there is no implication that Ore Reserves have been established or that economic development
is assured. In this regard it may be appropriate to indicate the Mineral Resource inputs to the Scoping
Study and the processes applied, but it is not appropriate to report the diluted tonnes and grade as if they
were Ore Reserves.
While initial mining and processing cases may have been developed during a Scoping Study, it must not
be used to allow an Ore Reserve to be developed.
39. A Preliminary Feasibility Study (Pre-Feasibility Study) is a comprehensive study of a range of
options for the technical and economic viability of a mineral project that has advanced to a stage
where a preferred mining method, in the case of underground mining, or the pit conguration, in
the case of an open pit, is established and an effective method of mineral processing is determined.
It includes a nancial analysis based on reasonable assumptions on the Modifying Factors and
the evaluation of any other relevant factors which are sufcient for a Competent Person, acting
reasonably, to determine if all or part of the Mineral Resources may be converted to an Ore
Reserve at the time of reporting. A Pre-Feasibility Study is at a lower condence level than a
Feasibility Study.
As noted in Clause 29, formal assessment of all Modifying Factors is required in order to determine how
much available Measured and Indicated Mineral Resources can be converted to Ore Reserves.
A Pre-Feasibility Study will consider the application and description of all Modifying factors (as outlined
in Table 1, section 4) to demonstrate economic viability and to support an Ore Reserve Public Report.
The Pre-Feasibility Study will identify the preferred mining, processing, and infrastructure requirements
and capacities, but will not yet have nalised these matters. Detailed assessments of environmental and
socio-economic impacts and requirements will also be well advanced. The Pre-Feasibility Study will
highlight areas that require further renement within the nal study stage.
40. A Feasibility Study is a comprehensive technical and economic study of the selected development
option for a mineral project that includes appropriately detailed assessments of applicable
Modifying Factors together with any other relevant operational factors and detailed nancial
analysis that are necessary to demonstrate at the time of reporting that extraction is reasonably
justied (economically mineable). The results of the study may reasonably serve as the basis for a
nal decision by a proponent or nancial institution to proceed with, or nance, the development
of the project. The condence level of the study will be higher than that of a Pre-Feasibility Study.
The Code does not require that a full Feasibility Study has been undertaken to convert Mineral
Resources to Ore Reserves, but it does require that at least a Pre-Feasibility Study will have been carried
out that will have determined a mine plan that is technically achievable and economically viable, and
that material Modifying Factors have been considered.
Terms such as Bankable Feasibility Study and Denitive Feasibility Study are noted as being
equivalent to a Feasibility Study as dened in this Clause.
A Feasibility Study is of a higher level of condence than a Pre-Feasibility Study and would normally
contain mining, infrastructure and process designs completed with sufcient rigour to serve as the basis
for an investment decision or to support project nancing. Social, environmental and governmental
20
approvals, permits and agreements will be in place, or will be approaching nalisation within the
expected development timeframe. The Feasibility Study will contain the application and description of all
Modifying factors (as outlined in Table 1, section 4) in a more detailed form than in the Pre-Feasibility
Study, and may address implementation issues such as detailed mining schedules, construction ramp up,
and project execution plans.
Reporting of Mineralised Fill, Remnants, Pillars, Low

Grade Mineralisation, Stockpiles, Dumps and Tailings
41. The Code applies to the reporting of all potentially economic mineralised material. This can include
mineralised ll, remnants, pillars, low grade mineralisation, stockpiles, dumps and tailings (remnant
materials) where there are reasonable prospects for eventual economic extraction in the case of Mineral
Resources, and where extraction is reasonably justiable in the case of Ore Reserves. Unless otherwise
stated, all other Clauses of the Code (including Figure 1) apply.
Any mineralised material as described in this Clause can be considered to be similar to in situ mineralisation
for the purposes of reporting Mineral Resources and Ore Reserves. Judgements about the mineability of
such mineralised material should be made by professionals with relevant experience.
If there are no reasonable prospects for the eventual economic extraction of all or part of the mineralised
material as described in this Clause, then this material cannot be classied as either Mineral Resources
or Ore Reserves. If some portion of the mineralised material is currently sub-economic, but there is a
reasonable expectation that it will become economic, then this material may be classied as a Mineral
Resource. If technical and economic studies have demonstrated that economic extraction could reasonably
be justied under realistically assumed conditions, then the material may be classied as an Ore Reserve.
The above guidelines apply equally to low-grade in situ mineralisation, sometimes referred to as mineralised
waste or marginal grade material, and often intended for stockpiling and treatment towards the end
of mine life. For clarity of understanding, it is recommended that tonnage and grade estimates of such
material be itemised separately in Public Reports, although they may be aggregated with total Mineral
Resource and Ore Reserve gures.
Stockpiles are dened to include both surface and underground stockpiles, including broken ore in stopes,
and can include ore currently in the ore storage system. Mineralised material in the course of being
processed (including leaching), if reported, should be reported separately.
Reporting of Coal Resources and Reserves

42. Clauses 42 to 44 of the Code address matters that relate specically to the Public Reporting of Coal
Resources and Coal Reserves. Unless otherwise stated, Clauses 1 to 41 and Clause 51 of this Code
(including Figure 1) apply. Table 1 should be considered when reporting on Coal Resources and Reserves.
For purposes of Public Reporting, the requirements for coal are those for other commodities with the
replacement of terms such as mineral by coal and grade by quality.
For guidance on the estimation of Coal Resources and Reserves and on statutory reporting not primarily
intended for providing information to the investing public, readers are referred to the Australian
Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves or its
successor document as published from time to time by the Coalelds Geology Council of New South Wales
and the Queensland Resources Council. These guidelines do not override the provisions and intentions of
the JORC Code for Public Reporting. Competent Persons should as always exercise their judgement in the
application of these guidelines to ensure they are appropriate to the circumstances being reported. They
may not be appropriate for use in all situations in Australia or overseas.
21
Because of its impact on planning and land use, governments may require estimates of inventory coal that
are not constrained by short- to medium-term economic considerations. The JORC Code does not cover
such estimates. Refer also to the guidelines to Clauses 6 and 20.
43. The terms Mineral Resource(s) and Ore Reserve(s), and the subdivisions of these as dened above,
apply also to coal reporting, but if preferred by the reporting company, the terms Coal Resource(s) and
Coal Reserve(s) and the appropriate subdivisions may be substituted.
44. Marketable Coal Reserves, representing beneciated or otherwise enhanced coal product where
modications due to mining, dilution and processing have been considered, must be publicly reported
in conjunction with, but not instead of, reports of Coal Reserves. The basis of the predicted yield to
achieve Marketable Coal Reserves must be stated.
Since investors need to be informed on the products intended to be sold, reporting of Marketable Coal
Reserves is required.
Reference to the terms coking coal or metallurgical coal, or any reference to coking properties, should not
be made until specic coking properties are demonstrated by analytical results for samples from a deposit.
Reporting of Diamond Exploration Results, Mineral

45. Clauses 45 to 48 of the Code address matters that relate specically to the Public Reporting of
Exploration Results, Mineral Resources and Ore Reserves for diamonds and other gemstones. Unless
otherwise stated, Clauses 1 to 41 and Clause 51 of this Code (including Figure 1) apply. Table 1 should
be considered when reporting Exploration Results, Mineral Resources and Ore Reserves for diamonds
and other gemstones.
For the purposes of Public Reporting, the requirements for diamonds and other gemstones are generally
similar to those for other commodities with the replacement of terms such as mineral by diamond and
grade by grade and average diamond value. The term quality should not be substituted for grade, since
in diamond deposits these have distinctly separate meanings. Other industry guidelines on the estimation
and reporting of diamond resources and reserves may be useful but will not under any circumstances
override the provisions and intentions of the JORC Code.
A number of characteristics of diamond deposits are different from those of, for example, typical
metalliferous and coal deposits and therefore require special consideration. These include the generally
low mineral content and variability of primary and placer deposits, the particulate nature of diamonds,
the specialised requirement for diamond valuation and the inherent difculties and uncertainties in the
estimation of diamond resources and reserves.
46. Reports of diamonds recovered from sampling programmes must provide material information relating
to the basis on which the sample is taken, the method of recovery and the recovery of the diamonds. The
weight of diamonds recovered may only be omitted from the report when the diamonds are considered
to be too small to be of commercial signicance. This lower cut-off size should be stated.
The stone size distribution and price of diamonds and other gemstones are critical components of the
resource and reserve estimates. At an early exploration stage, sampling and delineation drilling will
not usually provide this information, which relies on large diameter drilling and, in particular, bulk
sampling.
In order to demonstrate that a resource has reasonable prospects for economic extraction, some description
of the likely stone size distribution and price is necessary, however preliminary the analysis of these may
be. To determine an Inferred Mineral Resource in simple, single-facies or single-phase deposits, such
information may be obtainable by representative large diameter drilling. More often, some form of bulk
sampling, such as pitting and trenching, would be employed to provide larger sample parcels.
22
In order to progress to an Indicated Mineral Resource, and from there to a Probable Ore Reserve, it
is likely that much more extensive bulk sampling would be needed to fully determine the stone size
distribution and value. Commonly such bulk samples would be obtained by underground development
designed to obtain sufcient diamonds to enable a condent estimate of price.
In complex deposits, it may be very difcult to ensure that the bulk samples taken are truly representative
of the whole deposit. The lack of direct bulk sampling, and the uncertainty in demonstrating spatial
continuity of size and price relationships should be persuasive in determining the appropriate resource
category.
47. Where diamond Mineral Resource or Ore Reserve grades (carats per tonne) are based on correlations
between the frequency of occurrence of micro-diamonds and of commercial size stones, this must
be stated, the reliability of the procedure must be explained and the cut-off sieve size for microdiamonds reported.
48. For Public Reports dealing with diamond or other gemstone mineralisation, it is a requirement that any
reported valuation of a parcel of diamonds or gemstones be accompanied by a statement verifying the
independence of the valuation. The valuation must be based on a report from a demonstrably reputable
and qualied expert.
If a valuation of a parcel of diamonds is reported, the weight in carats and the lower cut-off size of the
contained diamonds must be stated and the value of the diamonds must be given in US dollars per
carat. Where the valuation is used in the estimation of diamond Mineral Resources or Ore Reserves,
the valuation must be based on a parcel representative of the size, shape and colour distributions of the
diamond population in the deposit.
Diamond valuations should not be reported for samples of diamonds processed using total liberation
methods.
Reporting of Industrial Minerals Exploration Results,

49. Industrial minerals are covered by the JORC Code if they meet the criteria set out in Clauses 6 and
7 of the Code. For the purpose of the JORC Code, industrial minerals can be considered to cover
commodities such as kaolin, phosphate, limestone, talc, etc.
For minerals that are dened by a specication, the Mineral Resource or Ore Reserve estimation must
be reported in terms of the mineral or minerals on which the project is to be based and must include
the specication of those minerals.
When reporting information and estimates for industrial minerals, the key principles and purpose of the
JORC Code apply and should be borne in mind. Assays may not always be relevant, and other quality
criteria may be more applicable. If criteria such as deleterious minerals or physical properties are of more
relevance than the composition of the bulk mineral itself, then they should be reported accordingly.
The factors underpinning the estimation of Mineral Resources and Ore Reserves for industrial minerals
are the same as those for other deposit types covered by the JORC Code. It may be necessary, prior to the
reporting of a Mineral Resource or Ore Reserve, to take particular account of certain key characteristics
or qualities such as likely product specications, proximity to markets and general product marketability.
For some industrial minerals, it is common practice to report the saleable product rather than the asmined product, which is traditionally regarded as the Ore Reserve. JORCs preference is that, if the
saleable product is reported, it should be in conjunction with, not instead of, reporting of the Ore Reserve.
However, it is recognised that commercial sensitivities may not always permit this preferred style of
reporting. It is important that, in all situations where the saleable product is reported, a clarifying
statement is included to ensure that the reader is fully informed as to what is being reported.
23
Some industrial mineral deposits may be capable of yielding products suitable for more than one
application and/or specication. If considered material by the reporting company, such multiple products
should be quantied either separately or as a percentage of the bulk deposit.
Reporting of Metal Equivalents

50. The reporting of Exploration Results, Mineral Resources or Ore Reserves for polymetallic deposits
in terms of metal equivalents (a single equivalent grade of one major metal) must show details of all
material factors contributing to the net value derived from each constituent.
The following minimum information must accompany any Public Report that includes reference to
metal equivalents, in order to conform to the principles of Transparency, Materiality and Competence,
as set out in Clause 4:
s individual grades for all metals included in the metal equivalent calculation,
s assumed commodity prices for all metals (Companies should disclose the actual assumed prices. It
is not sufcient to refer to a spot price without disclosing the price used in calculating the metal
equivalent. However where the actual prices used are commercially sensitive, the company must
disclose sufcient information, perhaps in narrative rather than numerical form, for investors to
understand the methodology it has used to determine these prices),
s assumed metallurgical recoveries for all metals and discussion of the basis on which the assumed
recoveries are derived (metallurgical test work, detailed mineralogy, similar deposits, etc),
s a clear statement that it is the companys opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold, and
s the calculation formula used.
In most circumstances, the metal chosen for reporting on an equivalent basis should be the one that
contributes most to the metal equivalent calculation. If this is not the case, a clear explanation of the
logic of choosing another metal must be included in the report.
Estimates of metallurgical recoveries for each metal must be used to calculate meaningful metal
equivalents.
Reporting on the basis of metal equivalents is not appropriate if metallurgical recovery information is
not available or able to be estimated with reasonable condence.
For many projects at the Exploration Results stage, metallurgical recovery information may not be
available or able to be estimated with reasonable condence. In such cases reporting of metal equivalents
may be misleading.
Reporting of In Situ or In Ground Valuations

51. The publication of in situ or in ground nancial valuations breaches the principles of the Code (as set
out in Clause 4) as the use of these terms is not transparent and lacks material information. It is also
contrary to the intent of Clause 28 of the Code. Such in situ or in ground nancial valuations must not
be reported by companies in relation to Exploration Results, Mineral Resources or deposit size.
The use of such nancial valuations (usually quoted in dollars) has little or no relationship to economic
viability, value or potential returns to investors.
These nancial valuations can imply economic viability without the apparent consideration of the
application of the Modifying Factors, (Clause 12 and Clauses 29 to 36), in particular, the mining,
processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social, and
governmental factors.
24
In determining project viability it is necessary to include all reasonable Modifying Factors (Clauses 29 to
36) to determine the economic value that can be extracted from the mineralisation.
Many deposits with large in ground values are never developed because they have a negative Net Present
Value when all reasonable Modifying Factors are considered.
By reporting such nancial valuations as a component of Exploration Results or when evaluating deposits
that commonly include large portions of Inferred Mineral Resources, companies are not necessarily
representing the economic viability of the project, or the net economic value that can be extracted from
the mineralisation.
25
Table 1 Checklist of Assessment and Reporting Criteria

Table 1 is a checklist or reference for use by those preparing Public Reports on Exploration Results, Mineral
Resources and Ore Reserves.
In the context of complying with the Principles of the Code, comment on the relevant sections of Table 1
should be provided on an if not, why not basis within the Competent Persons documentation and must
be provided where required according to the specic requirements of Clauses 19, 27 and 35 for signicant
projects in the Public Report. This is to ensure that it is clear to the investor whether items have been
considered and deemed of low consequence or have yet to be addressed or resolved.
As always, relevance and Materiality are overriding principles that determine what information should be
publicly reported and the Competent Person must provide sufcient comment on all matters that might
materially affect a readers understanding or interpretation of the results or estimates being reported. This
is particularly important where inadequate or uncertain data affect the reliability of, or condence in, a
statement of Exploration Results or an estimate of Mineral Resources or Ore Reserves.
The order and grouping of criteria in Table 1 reects the normal systematic approach to exploration and
evaluation. Criteria in section 1 Sampling Techniques and Data apply to all succeeding sections. In the
remainder of the table, criteria listed in preceding sections would often also apply and should be considered
when estimating and reporting.
It is the responsibility of the Competent Person to consider all the criteria listed below and any additional
criteria that should apply to the study of a particular project or operation. The relative importance of the
criteria will vary with the particular project and the legal and economic conditions pertaining at the time
of determination.
In some cases it will be appropriate for a Public Report to exclude some commercially sensitive information.
A decision to exclude commercially sensitive information would be a decision for the company issuing the
Public Report, and such a decision should be made in accordance with any relevant corporations regulations
in that jurisdiction. For example, in Australia decisions to exclude commercially sensitive information need
to be made in accordance with the Corporations Act 2001 and the ASX listing rules and guidance notes.
In cases where commercially sensitive information is excluded from a Public Report, the report should provide summary information (for example the methodology used to determine economic assumptions where the
numerical value of those assumptions are commercially sensitive) and context for the purpose of informing
investors or potential investors and their advisers.
JORC TABLE 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria
Sampling
techniques
26
Explanation
s Nature and quality of sampling (eg cut channels, random chips, or specic specialised
industry standard measurement tools appropriate to the minerals under investigation, such
as down hole gamma sondes, or handheld XRF instruments, etc). These examples should
not be taken as limiting the broad meaning of sampling.
s Include reference to measures taken to ensure sample representivity and the appropriate
calibration of any measurement tools or systems used.
s Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where industry standard work has been done this would be relatively simple
(eg reverse circulation drilling was used to obtain 1 m samples from which 3 kg was
pulverised to produce a 30 g charge for re assay). In other cases more explanation may be
required, such as where there is coarse gold that has inherent sampling problems. Unusual
commodities or mineralisation types (eg submarine nodules) may warrant disclosure of
detailed information.
Criteria
Drilling
techniques
Explanation
s Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka,
sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails,
face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
Drill sample
s Method of recording and assessing core and chip sample recoveries and results assessed.
recovery
s Measures taken to maximise sample recovery and ensure representative nature of the samples.
s Whether a relationship exists between sample recovery and grade and whether sample bias
may have occurred due to preferential loss/gain of ne/coarse material.
Logging
s Whether core and chip samples have been geologically and geotechnically logged to a
level of detail to support appropriate Mineral Resource estimation, mining studies and
metallurgical studies.
s Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc)
photography.
s The total length and percentage of the relevant intersections logged.
Sub-sampling
s If core, whether cut or sawn and whether quarter, half or all core taken.
techniques
s If non-core, whether rifed, tube sampled, rotary split, etc and whether sampled wet or dry.
and sample
s For all sample types, the nature, quality and appropriateness of the sample preparation
preparation
technique.
s Quality control procedures adopted for all sub-sampling stages to maximise representivity
of samples.
s Measures taken to ensure that the sampling is representative of the in situ material collected,
including for instance results for eld duplicate/second-half sampling.
s Whether sample sizes are appropriate to the grain size of the material being sampled.
Quality of
s The nature, quality and appropriateness of the assaying and laboratory procedures used and
assay data and
whether the technique is considered partial or total.
laboratory tests s For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in
determining the analysis including instrument make and model, reading times, calibrations
factors applied and their derivation, etc.
s Nature of quality control procedures adopted (eg standards, blanks, duplicates, external
laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision
have been established.
Verication of
s The verication of signicant intersections by either independent or alternative company
sampling and
personnel.
assaying
s The use of twinned holes.
s Documentation of primary data, data entry procedures, data verication, data storage
(physical and electronic) protocols.
s Discuss any adjustment to assay data.
Location of data s Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys),
points
trenches, mine workings and other locations used in Mineral Resource estimation.
s Specication of the grid system used.
s Quality and adequacy of topographic control.
Data spacing
s Data spacing for reporting of Exploration Results.
and distribution s Whether the data spacing and distribution is sufcient to establish the degree of geological
and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation
procedure(s) and classications applied.
s Whether sample compositing has been applied.
27
Criteria
Explanation
Orientation of s Whether the orientation of sampling achieves unbiased sampling of possible structures and
data in relation
the extent to which this is known, considering the deposit type.
to geological
s If the relationship between the drilling orientation and the orientation of key mineralised
structure
structures is considered to have introduced a sampling bias, this should be assessed and
reported if material.
Sample security s The measures taken to ensure sample security.
Audits or
s The results of any audits or reviews of sampling techniques and data.
reviews
Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)
Criteria
Mineral
tenement and
land tenure
status
Explanation
s Type, reference name/number, location and ownership including agreements or material
issues with third parties such as joint ventures, partnerships, overriding royalties, native
title interests, historical sites, wilderness or national park and environmental settings.
s The security of the tenure held at the time of reporting along with any known impediments
to obtaining a licence to operate in the area.
Exploration done s Acknowledgment and appraisal of exploration by other parties.
by other parties
Geology
s Deposit type, geological setting and style of mineralisation.
Drill hole
s A summary of all information material to the understanding of the exploration results
Information
including a tabulation of the following information for all Material drill holes:
s easting and northing of the drill hole collar
s elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar
s dip and azimuth of the hole
s down hole length and interception depth
s hole length.
s If the exclusion of this information is justied on the basis that the information is not
Material and this exclusion does not detract from the understanding of the report, the
Competent Person should clearly explain why this is the case.
Data
s In reporting Exploration Results, weighting averaging techniques, maximum and/or
aggregation
minimum grade truncations (eg cutting of high grades) and cut-off grades are usually
methods
Material and should be stated.
s Where aggregate intercepts incorporate short lengths of high grade results and longer lengths
of low grade results, the procedure used for such aggregation should be stated and some
typical examples of such aggregations should be shown in detail.
s The assumptions used for any reporting of metal equivalent values should be clearly stated.
Relationship
s These relationships are particularly important in the reporting of Exploration Results.
between
s If the geometry of the mineralisation with respect to the drill hole angle is known, its nature
mineralisation
should be reported.
widths and
s If it is not known and only the down hole lengths are reported, there should be a clear
intercept lengths
statement to this effect (eg down hole length, true width not known).
Diagrams
s Appropriate maps and sections (with scales) and tabulations of intercepts should be included
for any signicant discovery being reported These should include, but not be limited to a
plan view of drill hole collar locations and appropriate sectional views.
28
Criteria
Balanced
reporting
Explanation
s Where comprehensive reporting of all Exploration Results is not practicable, representative
reporting of both low and high grades and/or widths should be practiced to avoid misleading
reporting of Exploration Results.
Other
s Other exploration data, if meaningful and material, should be reported including (but not
substantive
limited to): geological observations; geophysical survey results; geochemical survey results;
exploration data
bulk samples size and method of treatment; metallurgical test results; bulk density,
groundwater, geotechnical and rock characteristics; potential deleterious or contaminating
substances.
Further work
s The nature and scale of planned further work (eg tests for lateral extensions or depth
extensions or large-scale step-out drilling).
s Diagrams clearly highlighting the areas of possible extensions, including the main geological
interpretations and future drilling areas, provided this information is not commercially
sensitive.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria
Database
integrity
Site visits
Geological
interpretation
Dimensions
Estimation
and modelling
techniques
Explanation
s Measures taken to ensure that data has not been corrupted by, for example, transcription
or keying errors, between its initial collection and its use for Mineral Resource estimation
purposes.
s Data validation procedures used.
s Comment on any site visits undertaken by the Competent Person and the outcome of those
visits.
s If no site visits have been undertaken indicate why this is the case.
s Condence in (or conversely, the uncertainty of ) the geological interpretation of the mineral
deposit.
s Nature of the data used and of any assumptions made.
s The effect, if any, of alternative interpretations on Mineral Resource estimation.
s The use of geology in guiding and controlling Mineral Resource estimation.
s The factors affecting continuity both of grade and geology.
s The extent and variability of the Mineral Resource expressed as length (along strike or
otherwise), plan width, and depth below surface to the upper and lower limits of the
Mineral Resource.
s The nature and appropriateness of the estimation technique(s) applied and key assumptions,
including treatment of extreme grade values, domaining, interpolation parameters and
maximum distance of extrapolation from data points. If a computer assisted estimation
method was chosen include a description of computer software and parameters used.
s The availability of check estimates, previous estimates and/or mine production records and
whether the Mineral Resource estimate takes appropriate account of such data.
s The assumptions made regarding recovery of by-products.
s Estimation of deleterious elements or other non-grade variables of economic signicance (eg
sulphur for acid mine drainage characterisation).
s In the case of block model interpolation, the block size in relation to the average sample
spacing and the search employed.
s Any assumptions behind modelling of selective mining units.
29
Criteria
Estimation
and modelling
techniques
(continued)
Moisture
Cut-off
parameters
Mining factors
or assumptions
Metallurgical
factors or
assumptions
Environmental
factors or
assumptions
Bulk density
Classication
Audits or
reviews.
30
Explanation
s Any assumptions about correlation between variables.
s Description of how the geological interpretation was used to control the resource estimates.
s Discussion of basis for using or not using grade cutting or capping.
s The process of validation, the checking process used, the comparison of model data to drill
hole data, and use of reconciliation data if available.
s Whether the tonnages are estimated on a dry basis or with natural moisture, and the
method of determination of the moisture content.
s The basis of the adopted cut-off grade(s) or quality parameters applied.
s Assumptions made regarding possible mining methods, minimum mining dimensions
and internal (or, if applicable, external) mining dilution. It is always necessary as part
of the process of determining reasonable prospects for eventual economic extraction to
consider potential mining methods, but the assumptions made regarding mining methods
and parameters when estimating Mineral Resources may not always be rigorous. Where
this is the case, this should be reported with an explanation of the basis of the mining
assumptions made.
s The basis for assumptions or predictions regarding metallurgical amenability. It is always
necessary as part of the process of determining reasonable prospects for eventual economic
extraction to consider potential metallurgical methods, but the assumptions regarding
metallurgical treatment processes and parameters made when reporting Mineral Resources
may not always be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made.
s Assumptions made regarding possible waste and process residue disposal options. It is
always necessary as part of the process of determining reasonable prospects for eventual
economic extraction to consider the potential environmental impacts of the mining and
processing operation. While at this stage the determination of potential environmental
impacts, particularly for a greenelds project, may not always be well advanced, the status
of early consideration of these potential environmental impacts should be reported. Where
these aspects have not been considered this should be reported with an explanation of the
environmental assumptions made.
s Whether assumed or determined. If assumed, the basis for the assumptions. If determined,
the method used, whether wet or dry, the frequency of the measurements, the nature, size
and representativeness of the samples.
s The bulk density for bulk material must have been measured by methods that adequately
account for void spaces (vugs, porosity, etc), moisture and differences between rock and
alteration zones within the deposit.
s Discuss assumptions for bulk density estimates used in the evaluation process of the different
materials.
s The basis for the classication of the Mineral Resources into varying condence
categories.
s Whether appropriate account has been taken of all relevant factors (ie relative condence
in tonnage/grade estimations, reliability of input data, condence in continuity of geology
and metal values, quality, quantity and distribution of the data).
s Whether the result appropriately reects the Competent Persons view of the deposit.
s The results of any audits or reviews of Mineral Resource estimates.
Criteria
Discussion
of relative
accuracy/
condence
Explanation
s Where appropriate a statement of the relative accuracy and condence level in the Mineral
Resource estimate using an approach or procedure deemed appropriate by the Competent
Person. For example, the application of statistical or geostatistical procedures to quantify the
relative accuracy of the resource within stated condence limits, or, if such an approach is
not deemed appropriate, a qualitative discussion of the factors that could affect the relative
accuracy and condence of the estimate.
s The statement should specify whether it relates to global or local estimates, and, if local,
state the relevant tonnages, which should be relevant to technical and economic evaluation.
Documentation should include assumptions made and the procedures used.
s These statements of relative accuracy and condence of the estimate should be compared
with production data, where available.
Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)
Criteria
Mineral
Resource
estimate for
conversion to
Ore Reserves
Site visits
Study status
Cut-off
parameters
Mining factors
or assumptions
Explanation
s Description of the Mineral Resource estimate used as a basis for the conversion to an Ore
Reserve.
s Clear statement as to whether the Mineral Resources are reported additional to, or inclusive
of, the Ore Reserves.
s Comment on any site visits undertaken by the Competent Person and the outcome of those
visits.
s If no site visits have been undertaken indicate why this is the case.
s The type and level of study undertaken to enable Mineral Resources to be converted to Ore
Reserves.
s The Code requires that a study to at least Pre-Feasibility Study level has been undertaken
to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and
will have determined a mine plan that is technically achievable and economically viable,
and that material Modifying Factors have been considered.
s The basis of the cut-off grade(s) or quality parameters applied.
s The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to
convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate
factors by optimisation or by preliminary or detailed design).
s The choice, nature and appropriateness of the selected mining method(s) and other mining
parameters including associated design issues such as pre-strip, access, etc.
s The assumptions made regarding geotechnical parameters (eg pit slopes, stope sizes, etc),
grade control and pre-production drilling.
s The major assumptions made and Mineral Resource model used for pit and stope
optimisation (if appropriate).
s The mining dilution factors used.
s The mining recovery factors used.
s Any minimum mining widths used.
s The manner in which Inferred Mineral Resources are utilised in mining studies and the
sensitivity of the outcome to their inclusion.
s The infrastructure requirements of the selected mining methods.
31
Criteria
Metallurgical
factors or
assumptions
Environmental
Infrastructure
Costs
Revenue factors
Market
assessment
Economic
Social
32
Explanation
s The metallurgical process proposed and the appropriateness of that process to the style of
mineralisation.
s Whether the metallurgical process is well-tested technology or novel in nature.
s The nature, amount and representativeness of metallurgical test work undertaken, the
nature of the metallurgical domaining applied and the corresponding metallurgical recovery
factors applied.
s Any assumptions or allowances made for deleterious elements.
s The existence of any bulk sample or pilot scale test work and the degree to which such
samples are considered representative of the orebody as a whole.
s For minerals that are dened by a specication, has the ore reserve estimation been based
on the appropriate mineralogy to meet the specications?
s The status of studies of potential environmental impacts of the mining and processing
operation. Details of waste rock characterisation and the consideration of potential sites,
status of design options considered and, where applicable, the status of approvals for process
residue storage and waste dumps should be reported.
s The existence of appropriate infrastructure: availability of land for plant development,
power, water, transportation (particularly for bulk commodities), labour, accommodation;
or the ease with which the infrastructure can be provided, or accessed.
s The derivation of, or assumptions made, regarding projected capital costs in the study.
s The methodology used to estimate operating costs.
s Allowances made for the content of deleterious elements.
s The source of exchange rates used in the study.
s Derivation of transportation charges.
s The basis for forecasting or source of treatment and rening charges, penalties for failure to
meet specication, etc.
s The allowances made for royalties payable, both Government and private.
s The derivation of, or assumptions made regarding revenue factors including head grade,
metal or commodity price(s) exchange rates, transportation and treatment charges, penalties,
net smelter returns, etc.
s The derivation of assumptions made of metal or commodity price(s), for the principal
metals, minerals and co-products.
s The demand, supply and stock situation for the particular commodity, consumption trends
and factors likely to affect supply and demand into the future.
s A customer and competitor analysis along with the identication of likely market windows
for the product.
s Price and volume forecasts and the basis for these forecasts.
s For industrial minerals the customer specication, testing and acceptance requirements
prior to a supply contract.
s The inputs to the economic analysis to produce the net present value (NPV) in the study,
the source and condence of these economic inputs including estimated ination, discount
rate, etc.
s NPV ranges and sensitivity to variations in the signicant assumptions and inputs.
s The status of agreements with key stakeholders and matters leading to social licence to
operate.
Criteria
Other
Classication
Audits or
reviews
Discussion
of relative
accuracy/
condence
Explanation
s To the extent relevant, the impact of the following on the project and/or on the estimation
and classication of the Ore Reserves:
s Any identied material naturally occurring risks.
s The status of material legal agreements and marketing arrangements.
s The status of governmental agreements and approvals critical to the viability of the project,
such as mineral tenement status, and government and statutory approvals. There must
be reasonable grounds to expect that all necessary Government approvals will be received
within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and
discuss the materiality of any unresolved matter that is dependent on a third party on which
extraction of the reserve is contingent.
s The basis for the classication of the Ore Reserves into varying condence categories.
s Whether the result appropriately reects the Competent Persons view of the deposit.
s The proportion of Probable Ore Reserves that have been derived from Measured Mineral
Resources (if any).
s The results of any audits or reviews of Ore Reserve estimates.
s Where appropriate a statement of the relative accuracy and condence level in the Ore
Reserve estimate using an approach or procedure deemed appropriate by the Competent
Person. For example, the application of statistical or geostatistical procedures to quantify the
relative accuracy of the reserve within stated condence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors which could affect the relative
accuracy and condence of the estimate.
s The statement should specify whether it relates to global or local estimates, and, if local,
state the relevant tonnages, which should be relevant to technical and economic evaluation.
Documentation should include assumptions made and the procedures used.
s Accuracy and condence discussions should extend to specic discussions of any applied
Modifying Factors that may have a material impact on Ore Reserve viability, or for which
there are remaining areas of uncertainty at the current study stage.
s It is recognised that this may not be possible or appropriate in all circumstances. These
statements of relative accuracy and condence of the estimate should be compared with
production data, where available.
Section 5 Estimation and Reporting of Diamonds and Other Gemstones

(Criteria listed in other relevant sections also apply to this section. Additional guidelines are available in
the Guidelines for the Reporting of Diamond Exploration Results issued by the Diamond Exploration Best
Practices Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum.)
Criteria
Indicator
minerals
Source of
diamonds
Sample
collection
Explanation
s Reports of indicator minerals, such as chemically/physically distinctive garnet, ilmenite,
chrome spinel and chrome diopside, should be prepared by a suitably qualied laboratory.
s Details of the form, shape, size and colour of the diamonds and the nature of the source
of diamonds (primary or secondary) including the rock type and geological environment.
s Type of sample, whether outcrop, boulders, drill core, reverse circulation drill cuttings,
gravel, stream sediment or soil, and purpose (eg large diameter drilling to establish stones
per unit of volume or bulk samples to establish stone size distribution).
s Sample size, distribution and representivity.
33
Criteria
Sample
treatment
Carat
Sample grade
Reporting of
Exploration
Results
Grade
estimation
for reporting
Mineral
Resources and
Ore Reserves
Value
estimation
34
Explanation
s Type of facility, treatment rate, and accreditation.
s Sample size reduction. Bottom screen size, top screen size and re-crush.
s Processes (dense media separation, grease, X-ray, hand-sorting, etc).
s Process efciency, tailings auditing and granulometry.
s Laboratory used, type of process for micro diamonds and accreditation.
s One fth (0.2) of a gram (often dened as a metric carat or MC).
s Sample grade in this section of Table 1 is used in the context of carats per units of mass,
area or volume.
s The sample grade above the specied lower cut-off sieve size should be reported as carats
per dry metric tonne and/or carats per 100 dry metric tonnes. For alluvial deposits,
sample grades quoted in carats per square metre or carats per cubic metre are acceptable if
accompanied by a volume to weight basis for calculation.
s In addition to general requirements to assess volume and density there is a need to relate
stone frequency (stones per cubic metre or tonne) to stone size (carats per stone) to derive
sample grade (carats per tonne).
s Complete set of sieve data using a standard progression of sieve sizes per facies. Bulk sampling
results, global sample grade per facies. Spatial structure analysis and grade distribution.
Stone size and number distribution. Sample head feed and tailings particle granulometry.
s Sample density determination.
s Per cent concentrate and undersize per sample.
s Sample grade with change in bottom cut-off screen size.
s Adjustments made to size distribution for sample plant performance and performance on
a commercial scale.
s If appropriate or employed, geostatistical techniques applied to model stone size, distribution
or frequency from size distribution of exploration diamond samples.
s The weight of diamonds may only be omitted from the report when the diamonds are
considered too small to be of commercial signicance. This lower cut-off size should be
stated.
s Description of the sample type and the spatial arrangement of drilling or sampling designed
for grade estimation.
s The sample crush size and its relationship to that achievable in a commercial treatment
plant.
s Total number of diamonds greater than the specied and reported lower cut-off sieve size.
s Total weight of diamonds greater than the specied and reported lower cut-off sieve size.
s The sample grade above the specied lower cut-off sieve size.
s Valuations should not be reported for samples of diamonds processed using total liberation
method, which is commonly used for processing exploration samples.
s To the extent that such information is not deemed commercially sensitive, Public Reports
should include:
s diamonds quantities by appropriate screen size per facies or depth.
s details of parcel valued.
s number of stones, carats, lower size cut-off per facies or depth.
s The average $/carat and $/tonne value at the selected bottom cut-off should be reported in
US Dollars. The value per carat is of critical importance in demonstrating project value.
s The basis for the price (eg dealer buying price, dealer selling price, etc).
s An assessment of diamond breakage.
Criteria
Security and
integrity
Classication
Explanation
s Accredited process audit.
s Whether samples were sealed after excavation.
s Valuer location, escort, delivery, cleaning losses, reconciliation with recorded sample carats
and number of stones.
s Core samples washed prior to treatment for micro diamonds.
s Audit samples treated at alternative facility.
s Results of tailings checks.
s Recovery of tracer monitors used in sampling and treatment.
s Geophysical (logged) density and particle density.
s Cross validation of sample weights, wet and dry, with hole volume and density, moisture
factor.
s In addition to general requirements to assess volume and density there is a need to relate
stone frequency (stones per cubic metre or tonne) to stone size (carats per stone) to derive
grade (carats per tonne). The elements of uncertainty in these estimates should be considered,
and classication developed accordingly.
35
Appendix 1 Generic Terms and Equivalents

Throughout the Code, certain words are used in a general sense when a more specic meaning might be attached
to them by particular commodity groups within the industry. In order to avoid unnecessary duplication, a nonexclusive list of generic terms is tabulated below together with other terms that may be regarded as synonymous for
the purposes of this document.
Generic
Term
assumption
Synonyms and
similar terms
value judgements
The Competent Person in general makes value judgements when making

assumptions regarding information not fully supported by test work.
Qualied Person
Refer to the Clause 11 of the Code for the denition of a Competent
(Canada), Qualied Person. Any reference in the Code to the singular (a Competent Person)
Competent Person
includes a reference to the plural (Competent Persons). It is noted that
(Chile)
reporting in accordance with the Code is commonly a team effort.
Competent
Person
cut-off grade
grade
metallurgy
product specications The lowest grade, or quality, of mineralised material that qualies as
economically mineable and available in a given deposit. May be dened
on the basis of economic evaluation, or on physical or chemical attributes
that dene an acceptable product specication.
quality, assay,
Any physical or chemical measurement of the characteristics of the
analysis (that is
material of interest in samples or product. Note that the term quality
value returned by
has special meaning for diamonds and other gemstones. The units of
the analysis)
measurement should be stated when gures are reported.
processing,
Physical and/or chemical separation of constituents of interest from a
beneciation,
larger mass of material. Methods employed to prepare a nal marketable
preparation,
product from material as mined. Examples include screening, otation,
concentration
magnetic separation, leaching, washing, roasting, etc.
mineralisation
type of deposit,
orebody, style of
mineralisation.
mining
quarrying
Ore Reserves
Mineral Reserves
recovery
yield
signicant
project
material project
tonnage
quantity, volume
36
Intended generalised meaning
Processing is generally regarded as broader than metallurgy and may

apply to non-metallic materials where the term metallurgy would be
inappropriate.
Any single mineral or combination of minerals occurring in a mass, or
deposit, of economic interest. The term is intended to cover all forms in
which mineralisation might occur, whether by class of deposit, mode of
occurrence, genesis or composition.
All activities related to extraction of metals, minerals and gemstones
from the earth whether surface or underground, and by any method (eg
quarries, open cast, open cut, solution mining, dredging, etc)
Ore Reserves is preferred under the JORC Code but Mineral Reserves
is in common use in other countries and is generally accepted. Other
descriptors can be used to clarify the meaning (eg Coal Reserves,
Diamond Reserves, etc).
The percentage of material of interest that is extracted during mining
and/or processing. A measure of mining or processing efciency.
An exploration or mineral development project that has or could
have a signicant inuence on the market value or operations of the
listed company, and/or has specic prominence in Public Reports and
announcements.
An expression of the amount of material of interest irrespective of the units
of measurement (which should be stated when gures are reported).
Appendix 2 Competent Persons Consent Form

Companies reporting Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves are reminded
that while a public report is the responsibility of the company acting through its Board of Directors, Clause 9
requires that any such report must be based on, and fairly reect the information and supporting documentation
prepared by a Competent Person or Persons. Clause 9 also requires that the report shall be issued with the prior
written consent of the Competent Person or Persons as to the form and context in which it appears.
In order to assist Competent Persons and companies to comply with these requirements, and to emphasise the need
for companies to obtain the prior written consent of each Competent Person for their material to be included in the
form and context in which it appears in the public report, ASX, together with JORC, have developed a Competent
Persons Consent Form that incorporates the requirements of the JORC Code.
The completion of a consent form, whether in the format provided or in an equivalent form, is recommended as
good practice and provides readily available evidence that the required prior written consent has been obtained.
Having the consent form witnessed by a peer professional society member is considered leading practice and is
strongly encouraged.
The Competent Persons Consent Form(s), or other evidence of the Competent Persons written consent, should be
retained by the company and the Competent Person to ensure that the written consent can be promptly provided
if required.
37
[Letterhead of Competent Person or Competent Persons employer]
Competent Persons Consent Form

Pursuant to the requirements of ASX Listing Rules 5.6, 5.22 and 5.24 and
Clause 9 of the JORC Code 2012 Edition (Written Consent Statement)
Report name
(Insert name or heading of Report to be publicly released) (Report)
(Insert name of company releasing the Report)
(Insert name of the deposit to which the Report refers)
If there is insufficient space, complete the following sheet and sign it in the same manner as this
original sheet.
(Date of Report)
38
Statement
I/We,
(Insert full name(s))
confirm that I am the Competent Person for the Report and:

t
I have read and understood the requirements of the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition).
I am a Competent Person as defined by the JORC Code 2012 Edition, having five years experience that is relevant to the style of mineralisation and type of deposit described in the Report,
and to the activity for which I am accepting responsibility.
I am a Member or Fellow of The Australasian Institute of Mining and Metallurgy or the Australian Institute of Geoscientists or a Recognised Professional Organisation (RPO) included in a list
promulgated by ASX from time to time.
I have reviewed the Report to which this Consent Statement applies.
I/We am a full time employee of
(Insert company name)
Or
I am a consultant working for
and have been engaged by
to prepare the documentation for
(Insert deposit name)
on which the Report is based, for the period ended
(Insert date of Resource/Reserve statement)
I have disclosed to the reporting company the full nature of the relationship between myself and
the company, including any issue that could be perceived by investors as a conflict of interest.
I verify that the Report is based on and fairly and accurately reflects in the form and context in
which it appears, the information in my supporting documentation relating to Exploration Targets,
Exploration Results, Mineral Resources and/or Ore Reserves (select as appropriate).
39
Consent
I consent to the release of the Report and this Consent Statement by the directors of:
(Insert reporting company name)
Signature of Competent Person
Date:
Professional Membership:
(insert organisation name)
Membership Number:
Signature of Witness:
Print Witness Name and Residence:

(eg town/suburb)
40
Additional deposits covered by the Report for which the Competent Person signing this form is
accepting responsibility:
Additional Reports related to the deposit for which the Competent Person signing this form is
accepting responsibility:
Signature of Competent Person
Date:
Professional Membership:
(insert organisation name)
Membership Number:
Signature of Witness:
Print Witness Name and Residence:

(eg town/suburb)
41
Appendix 3 Compliance Statements

Appropriate forms of compliance statements should be as follows (delete bullet points which do not
apply).
For Public Reports of Exploration Targets, initial or materially changed reports of Exploration Results,
Mineral Resources or Ore Reserves or company annual reports:
s If the required information is in the report:
The information in this report that relates to Exploration Targets, Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by (insert name of Competent Person), a
Competent Person who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy
or the Australian Institute of Geoscientists or a Recognised Professional Organisation (RPO) included
in a list that is posted on the ASX website from time to time (select as appropriate and insert the
name of the professional organisation of which the Competent Person is a member and the Competent
Persons grade of membership).
s If the required information is included in an attached statement:
The information in the report to which this statement is attached that relates to Exploration Targets,
Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by (insert
name of Competent Person), a Competent Person who is a Member or Fellow of The Australasian
Institute of Mining and Metallurgy or the Australian Institute of Geoscientists or a Recognised
Professional Organisation (RPO) included in a list posted on the ASX website from time to time
(select as appropriate and insert the name of the professional organisation of which the Competent
Person is a member and the Competent Persons grade of membership).
s If the Competent Person is a full-time employee of the company:
(Insert name of Competent Person) is a full-time employee of the company.
s If the Competent Person is not a full-time employee of the company:
(Insert name of Competent Person) is employed by (insert name of Competent Persons employer).
s The full nature of the relationship between the Competent Person and the reporting Company must be
declared together with the Competent Persons details. This declaration must outline and clarify any issue
that could be perceived by investors as a conict of interest.
s For all reports:
(Insert name of Competent Person) has sufcient experience that is relevant to the style of mineralisation
and type of deposit under consideration and to the activity being undertaken to qualify as a Competent
Person as dened in the 2012 Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. (Insert name of Competent Person) consents to the inclusion
in the report of the matters based on his (or her) information in the form and context in which it
appears.
For any subsequent Public Report based on a previously issued Public Report that refers to those Exploration
Results or estimates of Mineral Resources or Ore Reserves:
Where a Competent Person has previously issued the written consent to the inclusion of their ndings in
a report, a company re-issuing that information to the Public whether in the form of a presentation or a
subsequent announcement must, state the report name, date and reference the location of the original source
Public Report for public access.
s The information is extracted from the report entitled (name report) created on (date) and is available
to view on (website name). The company conrms that it is not aware of any new information or data
that materially affects the information included in the original market announcement and, in the case of
42
estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company conrms that the form and context in which the Competent Persons ndings
are presented have not been materially modied from the original market announcement.
Companies should be aware this exemption does not apply to subsequent reporting of information in the
company annual report.
43
Appendix 4 List of Acronyms

AIG
Australian Institute of Geoscientists
ASX
Australian Securities Exchange
CIM
Canadian Institute of Mining, Metallurgy and Petroleum
CMMI
Council of Mining and Metallurgical Institutions
CRIRSCO
Committee for Mineral Reserves International Reporting Standards
ICMM
International Council on Mining and Metals
JORC
Joint Ore Reserves Committee
JORC Code
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves
NAEN
The Russian Society of Subsoil Use Experts
NPV
Net Present Value
NROs
National Reporting Organisations
NZX
New Zealand Stock Exchange
UN-ECE
United Nations Economic Commission for Europe
UNFC
United Nations Framework Classication
PERC
Pan-European Reserves & Resources Reporting Committee
RPO
Recognised Professional Organisation
SAMCODES
South African Mineral Codes
SME
Society for Mining, Metallurgy & Exploration (USA)
The AusIMM
The Australasian Institute of Mining and Metallurgy
VALMIN Code
Code and Guidelines for Technical Assessment and/or Valuation of Mineral and
Petroleum Assets and Mineral and Petroleum Securities for Independent Expert Reports
44
HOME
Author Index
A
$E]DORY0=
$OOPDQ$
$UGHQ+
$UYLGVRQ+
47, 91
799
'LPLWUDNRSRXORV5
685
*ULHYH$
'RGG%
771
*\30
635825
'RPLQ\6&
659
287
'RQDOGVRQ-
229707
'R\OH0
301
'XGOH\-$
535
'XNH-+
145
189
83
H
+DGGRZ'-
221
+DOOH\6
199
+DQQD3-
145
%DOGZLQ-7
%DUQHV-)+
175
'XQKDP6
579
%HUU\0
585
'XQVWDQ*
503
%ODFNQH\3
351
'XVFL0
%ODWW)
473
%RUGHU6
467
%R\OH&
277
(DJOHQ3
487
%UDMNRYLFK1
277
(OGULGJH&6
835
%ULJJV0
229
(ONLQJWRQ7
701
+RUWRQ-$
97
%XUURZV7
799
(ULFNVRQ0
311
+XJR9(
457
%XWHO6
529
(YHULWW05
247
+XQW6-
835
%XWW%
467
%\H$
593
43
+DUJUHDYHV5
739
+DUPDQ&
155
+DUULQJWRQ,
507
+RGNLHZLF]3
791
+RRJYOLHW+
189
F
)DKH\*
229
+DQVRQ1
679767
)HUJXVRQ&
707
529
-DFNVRQ6
19593
-RQHV*
319
&DUH\&
791
)HUULHU$
&DUVZHOO-7
311
)LVKHU/$
69
&DUYLOOH'3
799
)RJGHQ1
351
&DWWR%
)RXFKp/
.DHVHKDJHQ)
401
301
451
&ODUN)
)UDQoRLV%RQJDUoRQ'0
.HQGDOO%
301
311
.HQW0
301
.ULVWHQVHQ6
155
8387
&RRPEHV-
33619767849
&RZDQ(-
137207221247
&RZDUG6
593
&UDZIRUG0
*DUGLQHU+LOO)
229
&UHHFK0
*D]OH\0)
627
*LEEV'
301
*LEVRQ%
319
*ODFNHQ,
263351
G
839
69
L
/DFRXUW5RGULJXHV5
619
/DWVFKD$$
277
/HYHWW-
229
'DQFNHUW*
451
*RGR\0
685
/HZLV3-
433
'DYLG'
443
*RVVDJH%/
175
/HZLV:
635
*UDGLP5
229
/HZ-+
*UD\'
351
/LSWRQ,7
97
61
/LYHVOH\.
843
'DYLV%.
'H9LWU\&
'LHULQJ7
121
287573
547
*UHHQ'5
907
Indexes|Author Index
0DWKHVRQ0
0F&DUWK\3/
301
4XHLUR]&
T
619
13415
0F&OXVNH\-
791
0RD\HU6
593
487
0RNRV3
5LGG0
799
5RGHQ6
53
0RUOH\&
647739755
7HUU\-
791
7UHQFK$
605
7UXHPDQ$
229263341
7YHUGRY$
815825
7\UUHOO-
5RQGRQ2
341
0XOOLQV0
791
5RVH6
679
0XUUD\+D\GHQ(
707
5RVV,7
409
8QJHU&
799
487
1LFKRODV*
593
1LNLVKLFKHY6
6FKRHOG1$
815
1RSSp0$
6FRWW$
419
805
6HHGVPDQ5:
557
6KLOODEHHU-+
519
6LPV'
189
:DOWKR$
155
6LQJHU5
301
:DWNLQV53
479
6PLWK7
53
O
2%ULHQ9
319
311363
YDQ$V$
9DQQ-
109
19287301593
:HUURU0
493
6RPPHUYLOOH%
277
:KLWH0(
507
3DFNH\'
605
6SUDJJ.-
247
:KLWKDP0)
3DUNHU+0
721
6WDQGLQJ&
619
:KLWWOH*
525
3KLOOLSV-
277
6WHSKHQVRQ35
:ROII5
593
3LOJHU*
19
6WRNHU37
19779799
767779799
3LWDUG))
749
6XOOLYDQ7'
385
3UHVWRQ.%
329
6\NHV-3
605
908
3373
HOME
Subject Index
Ace tool (drill core orientation), 125
bauxite resource denition drilling (case study), 94-5
acid rock drainage (ARD), 488
benchmarking (economic ore/waste classication), 688-96
afne correction, 290
beneciation, 488-9
AMC Consultants (AMC), 799
best practice, 7-10, 139
analysis protocols, 53-60
coal exploration and resource evaluation, 155-74
AngloGold Ashanti Australia Ltd, 301, 302, 308, 311-12, 317
geological interpretation and modelling, 141-2, 217, 229-45
Antamina Mine (case study), 726-30
Ore Reserve estimation, 503
apparent relative density (ARD), 168-9
resource guidelines, 264
assay database, 680-1

assay error, 57-60
risk in Resource and Reserve estimation, 575-6

BHP Billiton, 292-3, 493
assay interpretation, 681
estimating and reporting, 791-8
assaying/assays, 22, 53-60
mineral inventory framework, 793
accuracy, 56-7
due diligence, 582
eld duplicate, 58-9
grade control, 194-5
methods, 54-5
precision, 57-8
quality monitoring, 55-6
replicate, 56
and sampling, 83
audit
versus due diligence, 580
Feasibility Studies, 17-18
auditing a density measurement program, 106
Australian Consumer Law (ACL), 846
Australian Institute of Geoscientists (AIG), 844, 854
Australasian Institute of Mining and Metallurgy (AusIMM),
3-4, 627, 772, 780, 781, 805, 844, 850, 851, 854
resource range analysis (RRA), 793-7

unconstrained view, 792
biases
manual sampling, 89, 90
sampling, 83-5
blasthole drilling, 192
blasting, 196
block cave mines using PCBC (reserve estimation), 547-55
dilution sources, 547-8
economics, 549-50
excavation geometry, 550-2
ow mechanics, 548-9
mining sequence and history, 552-3
non-linear material ow, 553
other considerations, 554-5
residual material in multi-lift situations, 553-4
block caving software, 506, 535-46
Australian Mining Industry Council (AMIC), 627, 780
block or panel caving, 536
Australian Securities and Investment Commission (ASIC), 4,

7, 771-8, 839, 847
cave management, 542-3

documentation and data security, 546
Australian Securities Exchange (ASX)
economic modelling, 544
and 2012 JORC Code, 779
general use, 535
listing rules, 3-4, 33, 38, 627, 767, 768, 769, 771-2, 774, 780, 805,
839-40, 850
mine design criteria, 539-41
reporting requirements, 7, 627
pitfalls to avoid, 543-4
requirements, 781-3
Resources and Reserves, 536-9
automated sampling, 89-90
key drivers of value, 536
risks and opportunities, 544-5

schedule, 541-2
Ballmark system (drill core orientation), 121, 124
block modelling
909
Indexes|Subject Index
geological controls on, 146

for Mineral Resource estimation, 146
Qualied Persons, 33-8

and resource database, 43
block size, 24
Canadian National Instrument (NI), 4
borehole coordinates in Russia, 829

borehole data, 62
Canahuire Deposit (geological interpretation and modelling

case study), 230-7
borehole logging standards, 61
capital costs, 480-1
Brockman 4 iron ore deposit (Pilbara region), 277-86
capital investment system (CIS), 520-1
assaying, 281
classication, 285
data acquisition, 279-81
density, 281
developing the resource model, 281-5
drilling, 279
estimation, 282-3
geological modelling, 281-2
local geology, 279
model and data storage, 285
model progression, 285
model review process, 285
reconciliation, 284-5
regional geology, 278-9
resources, 285
sampling, 279-81
validation and model checklist, 283-4
variography, 282
bulk density (BD), 23
in situ (ISBD), 98
bulk density (BD) measurement for Resource estimation,
97-107
audit list, 106
calliper method, 99
core tray method, 102
determination from small samples, 99-103
discussion, 106-7
downhole geophysical density logging, 104-5
large-scale methods, 105, 107
moisture content, 104
from pulp samples, 102-3
quality assurance/quality control, 106
sand replacement method, 101-2
capital raising, 771-8

Australian Securities and Investments Commission
(ASIC), 771-2
background (legal perspective), 771
conclusions, 778
conduct and disclosure (regulatory environment), 772-3
expert reports, 773
fundraising, 773
international regulatory landscapes, 777
Midwest Corporation (case study), 774
takeovers panel, 773
technical experts reports, 776-7
carbon-in-leach (CIL) processing, 301
cave management, 542-3
caving methods
and longwall mining, 559-61
underground mining, 406-7
check standards, 55-6
civil unrest, 609
classication and reporting (Mineral Resources and Ore
Reserves), 7, 9, 767-70, 799-804
Competent Persons criteria, 768-9
geological perspective, 799-801
governance, 768
implications for reporting, 769-70
international reporting, 768
methods, 800
mining perspective, 802-3
practical interpretation of the code and guidelines, 767-8
solution, 803
spotted-dog classications, 800-1
coal
sealing porous samples, 103
analysis, 166-9
stoichiometric methods (estimation from sample

chemistry), 105
density, 420-1
gas and coal dust issues, 638
water displacement methods, 99-101
in situ, 420-1
quality, 637
calliper method (bulk density determination), 99
recovery, modelling, 426-9
Canadian Institute of Mining, Metallurgy and Petroleum

(CIM)
Reserves, 421-2, 556
Best Practice Guidelines, 43, 217

Denition Standards, 33-8
volume, 420
Coal and Coal Resources, inventory (identication,
classication and estimation), 329-40
and geological modelling and interpretation, 137, 217
codes of practice, 330
and JORC, 3, 33-8, 779
JORC Code, 329, 330, 333-4
910
key denitions, 330
geothermal gradient, 638
process steps, 331-40
hydrological issues, 637
coal and dilution/recovery material, 377
infrastructure issues, 638-9
coal exploration and resource evaluation, best practice,

154-74
International Financial Reporting Standards (IFRS), 635,

641-2
apparent relative density (ARD), 168-9
reliability of data, 636
assessment of coking properties, 169
Resource and Reserve evaluation, 635-43
assessment of uncertainty in Resource estimates, 173
seam continuity, 637
basic principles, 169
seismicity, 638
bias in coal quality estimates, 171
sensitivities, 642
coal analysis, 166-9
skills shortages, 639
coal distribution controls, 156-7
spontaneous combustion, 638
Coal Resource estimation, 169-73
structural or tectonic issues, 636-7
composite samples, 168
subsidence, 638
core photography, 165

core recovery, 159-60
valuation methodologies, 639-41

coal recovery in open pit mines, 419-30
cored versus non-cored drilling, 159
challenges, 422-3
data management, 158-9
Coal Reserves, 421-2
deposit characteristics, 156-7
coal volume, 420
desktop studies, 158

drilling, 159-66
drilling uids and additives, 160
geological logging, 160-2
geotechnical logging and groundwater data, 162-4
innovation and new technologies, 156
observation versus interpretation, 159
project stages, 157-8
sampling, 166-8
structural data, 172
surface modelling, 170
value of geological mapping, 158
coal geology data collection, 61-7
borehole data, 62
critical data to collect, 62-5
principles, 66-7
conclusions, 430-1
current status, 422
density, 420-1
in situ coal, 420-1
measuring component losses, 423-6
modelling coal recovery, 426-9
objectives, 422
preparation plant feed, 429
preparation plant performance, 429
production reconciliation and reporting, 422-9
production reconciliation system, 429-30
coal seam gas (CSG), 156
CoalLog, 61, 65-6
Code of Practice
mine site reconciliation, 755-63
see also Joint Ore Reserves Committee (JORC) Code
commercial risks, 615
seam depth and thickness, 63
Committee for Mineral Reserves International Reporting

Standards (CRIRSCO), 4, 33, 34, 37, 38, 171, 487, 635, 768, 780, 787,
828-9, 850
seam limits, 64-5
commodity price risk, 612-13
standards, 65-7
common earth model, 236-7
training and supervision, 66
common sense and good estimation, 19-20, 29
what is suitable data?, 61-2
communication and Resource-to-Reserve conversion, 26-8
roof and oor characteristics, 64
coal projects, 635-43

coal quality, 637
community consultation (Ok Tedi), 493-500

issues and learnings, 499-500
conclusions, 642-3
mine continuation consultation, 494-6
environmental issues, 639
mine life extension, 496-9
equipment breakdown or failure, 638

nancial matters, 639-42
sustainability, 500
Competent Persons, 3, 7, 25, 26, 27, 33-8, 788
gas and coal dust issues, 638
classication and reporting, 767-70, 799
geological and mining risks, 636-9
competency grouping, 858
geotechnical issues, 637-8
criteria, 768, 854-5

911
evolution of the notion of, 850-2
Reserve models and mine schedules, 742-3
experts expectations, 852-4
Resource model, 741-2
implications for, 38
stockpiles, 746
and JORC Code, 3, 7, 25, 26, 27, 33-8, 43, 767, 843-7, 849-59
see also geological data collection; geotechnical data,

collection from drill holes
liability, 843-7
testing alternative criteria, 855-8
Competent Persons reports (CPR), 635, 636, 637, 638-40, 837-8
composites
detailed analysis of, 438
mineralogy of, 438-9
computer software in Ore Reserve estimation, 505-6
conditional simulation
direct block, 306-7
empirical approaches, 290
methods for correlated variables, 293-5
models, 621-5
scenario-based project evaluation, 597-600
consent and legal responsibilities, 37-8, 839-40
contact analysis, 243-5
contingency (Feasibility Studies), 512-13
continuous disclosure, 774-6
core handling, 111-12
core logging, 21-2, 110, 112-19
core orientation see drill core orientation
core photography, 165
core recovery, 159-60
core scanners, 110
core tray method (bulk density determination), 102
corporate risk, 614-15
corporate tax, 482
Corporations Act 2001, 839, 844
data entry
electronic data transfer, 49
keyboard, 49
special values, 49-50
data ow
management, 47, 50
for resource estimation, 47-50
data fusion, 29
data input, geological/geotechnical, 401-2
data management, 29
data quality, 111
data sources, 740
data spacing, 666-7
data transfer, electronic, 49
database(s)
accurate and correct collection, 44
construction, 47-9
high-quality and comprehensive, 8
issues and due diligence, 582-3
safety and security, 50
see also relational databases; resource database
deposit-scale hypotheses, testing with eld work, 216
dilution see mining dilution
direct block conditional simulation, 306-7
direct-to-block implicit geological modelling, 247, 252-6
disclosure, 771-8
corruption, 608-9
Australian Securities and Investments Commission

(ASIC), 771-2
cost estimation (Feasibility Studies), 16
background (legal perspective), 771
cost factors (Ore Reserve estimation), 380-1, 480-2
conclusions, 778
pler Gold Deposit (case study), 201-2
conduct and disclosure (regulatory environment), 772-3
country (geographical) risk, 606-12
continuous, 774-6
cut-off grades, 23, 180-2, 184, 530-2, 536
expert reports, 773
cutting grades, 24
fundraising, 773
international convergence, 777-8
Damang Gold Mine (geological interpretation and

modelling case study), 229, 237-45
international regulatory landscapes, 777
dams, water storage, 398
takeovers panel, 773
data see portable X-ray uorescence (pXRF) data

data analysis

technical experts reports, 776-7
and reconciliation, 747
discrete Gaussian model (DGM), 287, 288, 289-90, 291, 292, 296,
304, 341-2, 344
resource estimation, 267-8
dolerite waste domain model, 222
data availability in Russia, 829-30

data collection, 740-8
domain(s)
boundaries, hard versus soft, 146
grade control, 743
control, 150
mining, 744-6
data analysis within, 147-9
processing plant, 746-8
due diligence, 583
912
lling with blocks, 149

geological, 146-7
Earth Sciences Pty Ltd, 847
grade, 146
economic factors (Ore Reserve estimation), 380-1, 482-3
grade continuity within, 148-9
economic feasibility, 517
structurally complex, 147
economic indicators and grade control, 696
downhole geophysical density logging, 104-5
economic ore/waste classication functions, 685-98
downhole logging, 110
economic parameters in Russia, 832
downhole spear, 121, 123-4, 125
economic performance and grade control, 696-8
down-plunge projection, 7, 141, 207, 208-10, 211, 212, 213, 214, 217
economic viability, 482
see also X-ray plunge projection
economically optimal mining process, 488
dredge mining (mine design), 374, 397-8
economics (block cave mining), 549-50
drill core
economies of scale, 533
assays, 435
electronic data transfer, 49
drying of, 436
engineering log, 112-14
processing of, 436
environmental constraints, 487-92
drill core orientation
beneciation, 488-9
Ballmark system, 121, 124
conclusions, 491
case studies, 126-8, 129, 132
collection of geotechnical data, 112
green (environmental) tape, 608
collection of structure data, 132-3
land access, 487-8, 607, 608
conclusions, 133-4
mine closure, 490-1
downhole spear, 121, 123-4, 125
Pre-Feasibility, 491
Ezy-Mark system, 121, 122, 124-5, 126
sustainability of potential waste rock dumps, 489
marking up stage problems, 128-32
waste and tailings storage, 489
methods, 121-33
orientation mark convention, 125-6
ORIshot , 121, 122, 125
environmental factors
industrial minerals, 470
Ore Reserve estimation, 379-80
Reex and Ace tool, 121, 122, 125
environmental issues and coal projects, 639
rig problems, 126-6
estimation, manual versus automated in Russia, 839
use and abuse, 121-34
estimation methodology, 3-4
Verti-Ori system, 121, 125
estimation principles, industrial minerals, 471-2
drill hole completion, 166
excavation geometry (block cave mining), 550-2
drill holes see geotechnical data, collection from drill holes
exchange rate risk, 613-14
drill samples, storage, 436
exploration data, 215-16
drilling
exploration drilling program, 15
aids, 436
Ezy-Mark system (drill core orientation), 121, 122, 124-5, 126
blasthole, 192
data, 21, 47
Fair Trading Acts (FTA), 846
method, selection of, 435-6
Feasibility Studies
reverse circulation, 192

drilling, coal exploration, 159-66
accuracy, 13, 507-14

causes of failure, 14-15, 18
cored versus non-cored, 159
contingency, 512-13
uids and additives, 160
cost estimation, 16
due diligence, 579-84
data on failures, 14
versus audits, 580
denition, 13
Feasibility Studies, 17-18
denitive, 509
and JORC Code, 584
economic, 517
preparation, 580-1
geology, Resources and Reserve estimation risks, 15
Resources, Reserves and exploration potential, 579-80
geotechnical analysis, 15
risk evaluation, 579-84
how they fail, 13-14
technical assessment, 581-4
hydrology, 16
913
metallurgical test work, sampling and scale-up, 16
geological/geotechnical data input, 401-2
mining design risks, 15
geological inputs to Ore Reserves, 585-92
mining equipment selection, 15-16
geological interpretation, progressive, 145-6
Ore Reserve estimation, 504
geological interpretation and due diligence, 583
peer review, audit and due diligence, 17-18
geological interpretation and modelling, 5, 20-1, 29, 137-42, 217
Preliminary, 509
best practices guidelines, 141-2, 217, 229-45
process plant equipment design and selection, 16
case studies, 140, 229-45
risk management, 17
data examination and interpretation, 139-40
scheduling risks, 15
geological analysis and interpretation guidelines, 141-2
scope, 507-16
geological data guidelines, 141
study implementation, 513
geological model validation guidelines, 142
eld duplicate samples, 56
geological modelling guidelines, 142, 217
eld sampling, 53-4
Gold Fields Limited, 229-45
eld work, testing deposit-scale hypotheses with, 216
good practice guidelines, 138-42
nancial analysis (Ore Reserve estimation), 381, 482-3, 590, 591
and Mineral Resource estimation, 5, 20-1, 29, 137-42, 229-45
nancial matters and coal projects, 639-42

folded deposits, resource estimation in, 351-61
accumulation processes, 355
outlook, 142
geological interpretation for resource modelling and
estimation, 145-52
complex and re-entrant folding, 357-8
analysis of data within domains, 147-9
folded mineralisation, 352-3
block modelling for Mineral Resource estimation, 146
folding and faulting, 358
computer-based methods, 146
geometric transformations, 353-5
conclusions, 151-2
rotating anisotropy, 355-6
lling domains with blocks, 149
simple unfolding, 356-7
interpretation of geological domains, 146-7
unfolding case study (Nova Deposit), 358-9
modelling requirements for different deposit types, 151,

152
unfolding technique, when to apply, 359-60

foreign exchange rates, 482
modelling spatial distribution of grades, 149-51
front-end loading (FEL), 504-5, 519-24
progressive geological interpretation, 145-6
capital investment system, 520-1
traps and limitations, 151
denition, 520
geological knowledge and resource modelling, 741
and failure of projects, 523-4
geological logging, 160-2
in mining, 521-3
geological mapping, 158, 741

geological model
geographical (country) risk, 606-12
testing the, 185
geological analysis and interpretation guidelines, 141-2
validation guidelines, 142
geological complexity, 21
geological data collection (Coal Resource estimation), 61-7

3D approach, 175-6, 247, 264
borehole data, 62
3D locational accuracy, 177
critical data to collect, 62-5
boundary analysis, 183
roof and oor characteristics, 64
Coal Resource estimation, 169-73
seam depth and thickness, 63
creating a model, 179-85
seam limits, 64-5
cut-off grades, 180-2, 184
standards and principles, 65-7
data collection, 176
training and supervision, 66
data review, 177-9
what is suitable data?, 61-2
direct-to-block, 247, 252-6
geological data guidelines, 141
gold deposits, 668
geological domains
guidelines, 142
analysis of data within, 147-9
indicators versus grade data, 183-4
lling with blocks, 149
lithological coding systems, 176-7
interpretation of, 146-7
mineralisation models, 180-5
see also domain(s)
summary, 184-5
914
testing the geological model, 185
fast-tracking studies, 399
viewing and assessing mineralisation, 182-3
and good practice, 394-9
weathering, 179
guidance and expectations in the Codes, 388-90
wireframe-free, 247-58
independent review, 399
and wireframes, 247, 248-50
JORC Code, 388-90, 399
see also modelling
project development stages, 390-3
geological risks in coal projects, 636-9
geotechnical investigation (mine development), 374
geological uncertainty, 590
geotechnical issues and coal projects, 637-8
geological understanding (grade control), 190-1
geothermal gradient and coal projects, 638
geologists, 26
going concern (corporate) risk, 614-15
and data collection, 66

geology, 20-2
gold assay methods, 54-5

gold deposits
drilling data, 21
deposit style, 659-61
estimating and interpretation, 22
exploitation, 670-3
logging, 21-2
exploration and Resource evaluation, 666-70
structural, 216-17
high-nugget characteristics, 659-62
understanding the mineral deposits, 8
nugget effect, 662-4, 675
geometallurgical guidelines (miners, geologists and

engineers), 443-50
nugget effect, competition, 663-4

nugget effect, practical implications, 666-74
conclusions, 449-50
nugget effect, sampling errors, 662-3
denitive phase, 444-8
nugget effect, volumevariance, 664
operational phase, 443-4
particle sizing, 661-2
outcomes, 443-8
reconciliation, 673
Preliminary phases, 448-9
resource estimation, 668-70
geometallurgy, 443
resource validation, 670
geostatistician, 27
sampling protocol optimisation, 664-6
geostatistics/geostatistical analysis, 24, 242-3, 268
warnings, 666, 670
geotechnical analysis (Feasibility Studies), 15

geotechnical data, collection from drill holes, 109-20
Gold Fields Limited, 707

Canahuire Deposit, 230-7
core handling, 111-12
Damang Gold Mine, 237-45
core logging, 110, 112-19
geological interpretation and modelling case studies,

229-45
core orientation, 112

core scanners, 110
gold particle sizing, 661-2
gold reserves, open pit, 529-34
data considerations and requirements, 109-10
companies and bigger projects, 532-4
data quality, 111
discount rate, 533-4
downhole logging, 110
engineering log, 112-14
lowering cut-off grades, 530-2
geotechnical domaining, 110
maximising value, 534
logging interval, 112-14
grade, orebody, 406
major defect log, 116-18
grade and tonnage estimate, 9
non-core logging, 110
grade continuity within domains, 148-9
oriented fracture log, 115-16
photography logging, 110-11
applications using economic indicators, 696
physical property testing, 116-17
assay, 194-5, 680-1
use of data, 119-20
blasthole drilling, 192
geotechnical data input, 401-2
blasting, 196
geotechnical factors (Ore Reserve estimation), 385-400
comparative performance and benchmarking, 688-96
background, 386-7
conclusions, 698
conclusions, 399-400
data, 214-15
empirical experience and risk, 387-8
dilution and recovery, 377

915
economic classication functions, 687-8
groundwater factors (Ore Reserve estimation), 385-400
economic ore/waste classication functions, 685-98
background, 386-7
geological understanding, 190-1
conclusions, 399-400
grindability to improve, 696-8
empirical experience and risk, 387-8
logging, 680
fast-tracking studies, 399
mapping, 191-2, 680
and good practice, 394-9
modelling, 195, 743-4
guidance and expectations in the Codes, 388-90
monitoring and exploiting the Reserve, 651-2, 655
independent review, 399
objectives, 189-90
JORC Code, 388-90, 399
ore accounting and reconciliation, 197
ore block design and mark-up, 195-6
groundwater investigations, 374-5
ore excavation and dispatch, 196
Gys formula, 87, 88
professionals at mine site, 197

and reconciliation, 743-4
Haquira Porphyry Copper Deposit (case study), 202-4
reverse circulation drilling, 192
hazardous wastes, 488
sampling, 192-4, 680
hydrological issues and coal projects, 637
simulation using sequential Gaussian simulation

(SGS), sequential indicator simulation (SIS) and P-Field
algorithms, 690
hydrology (Feasibility Studies), 16
software, 191
spacing, 308
sparse blasthole spacing, 690-6
stockpiles, 196-7
summary, 698
system development and process control, 190
trial area, 307-8
grade control system, 679-84
assay database, 680-1
assay interpretation, 681
development planning and sign-off, 681
documentation, 682-3
mapping and logging, 680
production reporting, 682
production tracking and implementation, 682
Iluka Resources, 457-66

conclusions, 466
exploration and resource development, 461-3
impacts on resource development, 463-5
mineral sands, 457-8
mineral sands markets, 458-60
overview, 460-1
implicit modelling, 232-6
in situ bulk density (ISBD), 98
in situ coal, 420-1
in situ recovery via leaching 398
Independence Group NL, 301, 302, 308
indirect lognormal correction (ILC), 290
inductively coupled plasma atomic emission spectroscopy
(ICPMS/AES) geochemistry, 199
quality assurance/quality control (QA/QC), 681
inductively coupled plasma mass spectrometry (ICP-MS),

54, 55
reconciliation, 682
industrial minerals, 382, 467-72
resource growth system, 683-4
community, social and environmental factors, 470
samples, 680
estimation principles, 471-2
training, 683
evaluation, 467
grade domains, 146
infrastructure, 470
grade elements, 536
and legal title, 469-70
grade-boundary models/modelling, 139, 184
the market, 467-9
grades
mining and processing, 470
block grade estimation, 149-50
Modifying Factors, 469-70
cut-off, 23, 180-2, 184, 530-2, 536
reporting, 472
modelling spatial distribution of, 149-51
resource characterisation, 470-1
Grange Resource Ltd, 247
ination of revenue and costs, 482
green (environmental) tape, 608
infrastructure
Greens Creek Mine (case study), 733-6
and coal projects, 638-9
gridding surfaces, 147
denition, 473
grindability to improve grade control, 696-8
evaluation of requirements, 473-4
916
factors (Ore Reserve estimation), 380
geotechnical and groundwater investigations, 388-90, 399
materiality and risk, 388
impact on investment, 476
Mineral Resource, 388-9, 585, 767-70, 805-6, 809, 811-12
mining developments, 473-7
Modifying Factors, 586
natural conditions inuencing requirements, 473
monitoring and exploiting the Reserve, 654, 656
ocean ports, 475
no technical prescription, 34
power supply, 475
and Ore Reserves, 373, 389, 525, 585-6, 805-6, 809-10, 811-12
risk, 609
practical interpretation, 767-8
site, 476
and portable X-ray uorescence (pXRF) data, 44, 69, 70-1, 79
transport/logistics, 474-6
purpose and principles, 780-1
water supply, 475-6
reasoning, 854, 858
International Financial Reporting Standards (IFRS), 635, 641-2
reasons for success, 781
reporting standards, 780, 850
investment, infrastructure impact on, 476
reporting system, 33-4, 35, 832-3
iron ore, 382
reports, 843-7
multivariate deposit resource estimation, 287-96
requirements, 3, 4, 7, 23, 66
see also BHP Billiton iron ore; Brockman 4 iron ore deposit
(Pilbara region); Rio Tinto Iron Ore (RTIO)
and resource database, 43
iron ore reserves, 451-6

assessment, 453
Table 1, 3, 6, 11, 34, 36, 37, 43, 44, 45, 264, 852
Technical Report, 34, 35, 38
technical work and reporting, 35-7
conclusion, 456
denition, 454-6
keyboard data entry, 49
matching products to customers, 452-4
kriging, 24, 27, 97, 148, 150, 224, 234, 249, 265, 273, 292
modelling, 454-6
standards, 456
discrete Gaussian model (DGM), 287, 288, 289-90, 291, 292, 296,
304
strategic production planning, 453-4
indicator, 149, 150, 179, 240, 265, 266, 268, 270, 296
linear, 265, 269-70, 287, 288, 291, 292, 303-4, 305
Joint Ore Reserves Committee (JORC), 69, 627
multiple indicator (MIK), 24, 185, 270, 288, 290, 293, 304, 367
Joint Ore Reserves Committee (JORC) Code, 3-4, 10, 11, 138,
150, 152, 171, 627
neighbourhood analysis (KNA), 271, 277, 283, 285, 286, 306

non-linear, 24, 269, 270, 288-92, 293, 296, 303-5
2012 development, 781-3
ordinary kriging conditional bias (OKCB), 289-90, 296
2012 review, 779-89

application of, 8, 15, 843-4
ordinary (OK), 5, 150, 185, 240, 270, 277, 278, 282-3, 286, 287, 289,
304, 367
Australian system, 783-8
variance, 289
and best practice guidelines, 264

and the Canadian Institute of Mining, Metallurgy and
Petroleum Denition Standards, 4, 33-8, 779, 783-8
labour relations, 609
classication and reporting, 767-70
land claims, 607-8
classication system, 6, 9, 13, 25-6
land for waste and tailings storage, 489
Coal Resources, 329, 330, 333-4, 419
leaching, 398
and Competent Persons, 3, 7, 25, 26, 27, 33-8, 43, 767, 843-7,
849-59
legal and governmental factors (Ore Reserve estimation), 383
competency, 37, 858

consent and legal responsibilities, 37-8, 839-40
land access (environmental constraints), 487-8, 607
legal responsibilities, 37-8, 839-40

legal title and industrial minerals, 469-70
continuous disclosure, 774-5
Leapfrog Mining, 7, 140, 218, 221, 222, 223, 224-6, 227, 228, 233,
234-5, 241, 242, 258
denitions (2012 revisions), 34, 38, 43, 45
Lerchs-Grossman analysis, 404, 409, 525-6
denitions and guidelines, 3, 4, 11, 25, 33-8
liability of Competent Person, 843-7
drilling of Mineral Resources, 363
liability issues, 839-41
due diligence, 584
life-of-mine (LOM), 377, 385, 454, 649-50, 654-5, 831-2
estimation methodology, 3-4
life-of-project closure, 380
framework, 37, 849
lithological coding systems, 176-7
and geological modelling and interpretation, 137
localised uniform conditioning (LUC), 341-9

917
case study, 344-9

logging, 21-2
mineral sands markets, 458-60

overview, 460-1
core, 21-2, 110, 112-19
material movement mapping, 757-8
criteria, 435
maximum intensity projection (MIP), 207, 211-14, 216, 217
data, 100
metal call factor (MCF), 707, 711, 714, 715, 717, 718, 719
downhole, 110
metalliferous orebodies (mining methods), 401-8
downhole geophysical density, 104-5
geological/geotechnical data input, 401-2
geological, 160-2
metallurgical performance input, 402
geotechnical, 162-4
open pit mine plan, 404-5
grade control system, 680
open pit or underground mining, 402-4
non-core logging, 110
orebody productivity, 407-8
logging interval, 112-14

lognormal correction (LC), 290
underground mine plan, 405-7

metallurgical evaluation
longwall mining system, 557-8
calculation of revenue, 440-1
longwall reserves, 557-69
completing the, 438-40
aspects of mine layout, 562-4

built infrastructure, 567-8
caving, 559-61
chain pillars, 563-4
conclusion, 569
discussion, 568-9
environment impact, 567
oor-bearing strength, 561
geological mine barriers, 558
ground control in roadways, 564-5
longwall face orientation, 562-3
multiple seams, 564
panel width, 563
subsidence, 565-8
suitability, 558-61
tip-to-face, 561
manual sampling, 89-90
mapping
due diligence, 582
geological, 158
denition, 433
interdisciplinary liaison, 434
metallurgical/geological liaison, 434-7
planning, 437-8
stages, 433
summary, 441
timing and cost in relation to risk, 433-4
metallurgical performance input, 402
metallurgical (processing) factors, 378-9
metallurgical test work, sampling and scale-up (Feasibility
Studies), 16
metallurgical/geological liaison, 434-7
correcting misapprehensions, 435
drill core assays, 435
drilling aids, 436
drying of drill core, 436
initial test work, 436-7
logging criteria, 435
processing of drill core, 436
selection of drilling method, 435-6
site visit, 437
storage of drill samples, 436
grade control, 191-2, 680
metallurgists, 28
material movement, 757-8
market
mine closure, 380, 490-1, 627-34
industrial minerals, 467-9
reasons, 632-4
inuence on Ore Reserves, 469
Russia, 822-3
inuence on resources, 468-9

requirements, 467-8
segments, 468
timing, 628-32
mine design stages in Russia, 815-23
comparing international design formats, 817
market assessment (Ore Reserve estimation), 381-2
conclusions, 823
marketing of industrial minerals (Iluka Resources), 457-66
design issues, 817-23
conclusions, 466
exploration and resource development, 461-3
developing and constructing, 815-16

mine designs
impacts on resource development, 463-5
criteria, 539-41
dredge mining, 374, 397-8
918
good practice with geotechnical and groundwater factors,

395-7
geology, 20-2
open pit, 374, 375-6, 395-6, 402-5
geostatistician, 27
risks (Feasibility Studies), 15

underground, 374, 376, 396-7, 402-4, 405-7
waste dumps, 374, 397
mine planning
long-term, 831-2
medium- and short-term, 650-1, 655
mine production, 652, 655-6
mine risk analysis, 587-9
mine schedules, 742-3
mine site development, 374-5
mine site professionals and grade control, 197
mine site reconciliation Code of Practice, 755-63
mineral deposits, modelling, 217
mineral expert report, 635
mineral processing (gold deposits), 673
Mineral Reporting frameworks, 33-4
Mineral Resource(s)
evaluation, 53
geological inputs, 585-92
identication, 647
inputs and responsibilities, 585
JORC Code, 388-9, 585, 767-70, 805-6, 809, 811-12
presentation, 26
public reporting, 7, 8, 34, 472, 767
technical assessment, 581-4
Mineral Resource classication, 25-6, 799-804
geological perspective, 799-801
methods, 800
mining perspective, 802-3
solution, 803
spotted-dog classications, 800-1
Mineral Resource estimation, 3, 23-5, 97-9, 263-74
Best Practice Guidelines (Canadian Institute of Mining
Metallurgy and Petroleum), 264
block modelling for, 146
bulk density, 97
classication and reporting, 7, 9, 19, 25-6, 799-84
data analysis, 267-8
detailed planning, 8
domains, assignment of, 266-7
errors, 721-6
geostatistical analysis, 268

good practice, key elements, 7-10
grade and tonnage estimate, 9, 97
history, 266
interpreting and modelling, 8-9
metallurgists, 28
mining engineer, 27-8
Modifying Factors, 9
monitoring and exploiting the reserve, 6-7
multidisciplinary nature of, 7
other emergent issues, 29
outlook, 274
overview, 4-5, 263-74
overview papers, 273
process, 4-7, 266-74
reconciliation, 10
recoverable Resource estimation, 271-2
Resource condence classication, 273
resource database, 5, 22-3, 43-6
risk, 6, 573-7
risk, clarifying and controlling, 9
risk evaluation (due diligence process), 579-84
scenarios, 366-7
smoothed grade interpolation block modelling, 269-70
synopsis of estimation approaches, 264-6
team-based, 19, 26-9
technical team and management, 29
unsmoothed grade estimation, 269
using multiple indicator kriging, 367
using ordinary kriging, 366
validating the Resource, 272-3
volume, 97
volumevariance, sample search and block size issues,
270-1
Walker Lake data set, 366
see also resource estimation
Mineral Resources, drilling of, 363-9
conclusions, 367-9
estimation scenarios, 366-7
JORC Code, 363
stages, 364
assay data, 320
cut-off grade to use, 325-6
fundamentals, 11, 97, 263
data preparation and inputs, 320-2
future, 10-11
denition, 457
geological interpretation and modelling, 5, 20-1, 29, 137-42,

229-45
deposit formation, 457-8
geologists, 26
drilling and sampling, 321-2
deposits, 322, 382, 457-8
919
estimates, issues impacting, 328
conclusions, 615-16
geology, 320
grade interpolation, 323-4
historical pricing, 460
markets, 458-60
risk from unlawful activity, 615
mineralogical assessment, 320

model parameters, 322-3
Ore Reserve reporting, 324-7
mining methods, 375-7

metalliferous orebodies, 401-8
see also mine designs
quality assurance/quality control (QA/QC), 321
mining process, economically optimal, 488
Resource estimation, 320
mining production, 652, 655-6, 672
Resource reporting, 324-5, 326-7
mining projects
mineralisation models, 180-5
funding, 701
summary, 184-5
and risk, 6, 573-7
testing, 185-7
scenario-based project evaluation (SBPE), 593-602
mineralogy calculation, 199-206
mining reconciliation see reconciliation
conclusions, 204-5
mining recovery, 377
pler Gold Deposit (case study), 201-2
mining risks in coal projects, 636-9
Haquira Porphyry Copper Deposit (case study), 202-4
mining value chain, 756-7
inductively coupled plasma atomic emission spectroscopy

(ICPMS/AES) geochemistry, 199
min/max autocorrection factors (MAF), 295

modelling
portable X-ray uorescence (XRF) devices, 199
coal resource exploration, 169-73
reverse circulation (RC) chips, 199
grade control, 195
Salt Creek Gold Deposit (case study), 199-201
implicit, 232-6
short-wave infrared (SWIR), 199, 200
mineral deposits, 217
mineralogy of the composites, 438-9
surface (coal resource exploration), 170
mining
tabular, 226-8
and front-end loading, 521-3
tabular geometry, 223-6
and Mineral Resource classication, 802-3
volume point, 223
and reconciliation, 744-6, 755-63

see also open pit mining; underground mining
mining design see mine designs
mining dilution, 377
block cave mining, 547-8
in underground mining, 415-18
mining equipment selection, 15-16, 405, 831
mining factors, 374-7
dilution and recovery, 377
geotechnical and groundwater parameters, 374-5
selecting mining method, 375-7
mining industrial minerals, 470
mining industry, reconciliation principles, 721-37
see also geological modelling

Modifying Factors (estimation of Ore Reserves), 9, 385, 454-5,
479, 483-4, 586-7, 809-11
see also non-resource inputs, Modifying Factors
(estimation of Ore Reserves)
moisture content (bulk density determination), 104
money mining methodology, 525-8
multiple indicator kriging (MIK), 24, 185, 270, 288, 290, 293, 304,
367
multivariate iron ore deposit resource estimation, 287-96
assessing when non-linear methods will add value, 288-92
discrete Gaussian model (DGM) global grade-tonnage
curves at BHP Billiton iron ore, 292-3
non-linear estimation and conditional simulation methods
for correlated values, 293-5
multivariate uniform conditioning, 342, 345-9
Antamina Mine (case study), 726-30

Greens Creek Mine (case study), 733-6
natural disaster risk, 609
hypothetical gold mine (case study), 730-1
new resource development process, 53-60
hypothetical iron ore deposit (case study), 731-3
New Zealand Stock Exchange (NZX), 627, 768, 780, 783, 805
sources of error, 721-6
Newmont Boddington Gold, 221-8
mining industry and non-technical risks, 605-16
background, 222-6
commercial risks (other), 615
conclusion, 228
data preparation, 226
920
dolerite waste domain model, 222
planning, 404-5
dynamic tabular modelling, 227
production scheduling, 404-5
Leapfrog Mining, 221, 222, 223, 224-6, 227, 228
mineralised domains, 227-8
waste storage, 405
tabular geometry modelling, 223-6
see also coal recovery in open pit mines
tabular modelling, 224, 226-8

volume point modelling, 223
open pit to underground mining (transition), 409-14

basic data, 410-11
non-caving methods (underground mining), 407
conclusions, 414
non-resource inputs, Modifying Factors (estimation of Ore

Reserves), 373-84
critical success factors, 413

example, 412-13
conclusions, 383
future trends, 413-14
economic factors, 380-1
Modifying Factors, 411-12
environmental factors, 379-80
transition issues, 412
infrastructure factors, 380
underground mining design factors, 409-10
legal and governmental factors, 383
operating costs, 481-2
level of study and condence, 373-4
operational knowledge, 482
market assessment, 381-2

ordinary kriging without minimising conditional bias

(OKCB), 289-90, 296
ore accounting and reconciliation, 197
social (community engagement) factors, 382-3
ore block design and mark-up, 195-6
non-resource inputs to estimate Ore Reserves, 6
ore excavation and dispatch, 196
Nova Deposit (case study), 358-9
ore ow, 757-8
nugget effect, 471, 659, 662-4
ore grade reconciliation problems, 749-54
challenges and solutions, 675
Ore Reserve governance (Rio Tinto), 835-8
composition, 663-4
Ore Reserve modication factors, geological inputs, 586-7
denition, 662
Ore Reserve statements, 525, 528
gold deposits, 659, 662-4, 666-73, 675
Ore Reserves
high, 741, 743
assessment, 453
practical implications, 666-73
geological inputs, 585-92
and resource models, 741
inputs and responsibilities, 585
and sampling errors, 662-3
and JORC Code, 373, 389, 525, 585-6, 767-70, 805-6, 809-10, 811-12
sample support and volumevariance, 664
market inuence on, 469

modelling, 454-5
ocean ports, 475
Modifying Factors, 9, 385, 454-5, 809-11
Ok Tedi, 493-500
and money mining methodology, 525-8
issues and learnings, 499-500
monitoring and exploiting, 647-56
mine continuation consultation, 494-6
public reporting, 7, 8, 34, 472, 767
mine life extension, 496-9
standards, 456
sustainability, 500
open pit block layout inaccuracies, 744
open pit gold reserves, 529-34
see also iron ore reserves

Ore Reserves estimation, 1, 3, 8, 9, 11, 503-6, 587
best practice, 503
companies and bigger projects, 532-4
classication and reporting, 7, 9, 19, 25-6
discount rate, 533-4
communication and Resource-to-Reserve conversion, 26-8
lowering cut-off grades, 530-2
computer software, 505-6
maximising value, 534
cost factors, 380-1, 480-2
open pit mining
detailed planning, 8
equipment selection, 405
economic factors, 380-1, 482-3
mine design, 374, 375-6, 395-6, 402-5
economically mineable?, 506
optimisation, 274, 289, 291, 292, 294, 312, 366, 375, 377, 404
enhancing project development, 504-5
Ore Reserve estimation, 415, 539
environmental factors, 379-80

921
errors, 721-6
peer review (Feasibility Studies), 17-18
Feasibility Studies, 504
perspectival anamorphosis, 208-10
nancial analysis, 381, 482-3, 590, 591
photography
fundamentals, 11
core, 165
future, 10-11
logging, 110-11
geological interpretation and modelling, 5
physical property testing, 118-19
geologists, 26
pilot plant, 379
geology, 20-2
planning strategies to increase project value, 701-5
geostatistician, 27
porphyry Cu/Au/Mo deposits, modelling requirements,

151, 152
geotechnical factors, 385-99

good practice, key elements, 7-10
grade and tonnage estimate, 9
groundwater factors, 385-99
infrastructure factors, 380
interpreting and modelling, 8-9
legal and governmental factors, 383
metallurgists, 28
Modifying Factors, 9, 373-84, 454-5, 479, 483-4, 586-7
monitoring and exploiting the reserve, 6-7
non-resource inputs to estimate Ore Reserves, 6
and open pit mining, 415, 539
other emergent issues, 29
overview, 4-5
process, 4-7, 41
reconciliation, 10
revenue factors, 381, 479-80
risk, clarifying and controlling, 9
risk in Resource and Reserve estimation, 6
risks, geology and resources, 15
social (community engagement) factors, 382-3
team-based, 19, 26-9
and underground mining, 415, 802
ore types or zones, delineation of, (Ore Reserve estimation),
378, 437-8
orebody geometry, 406
orebody grade, 406
orebody productivity, 407-8
ore/waste classication in grade control, 685-98
organisational culture, 574-5
ORIshot (drill core orientation), 121, 122, 125
portable X-ray uorescence (pXRF) data

analytical protocols, 77
calibration and reference materials, 75-7
instrumentation, 71-3
and JORC code, 44, 69, 70-1, 79
and mineralogy calculation, 199
public reporting recommendations, 79
reliability and validity, 44, 69-80
sample considerations, 73-5
validation and presentation of data, 77-9
power supply, 475
precious metal vein deposits, modelling requirements, 151,
152
Pre-Feasibility Studies (PFS), 381, 448, 449, 479, 491
probability eld simulation (P-eld), 690
process control (grade control systems), 190
process plant equipment design and selection, 16
processing industrial minerals, 470
processing plant
reconciliation, 746-7
production reporting, 682
production tracking and implementation, 682
project cycle, 507-8
project development stages, 390-3, 504-5, 806-7
project evaluation, 508-9
project failure and front-end loading (FEL), 523-4
project funding, 701
project value, planning strategies to increase, 701-5
projects, scope elements for minerals, 510-11
Public Reporting of Mineral Resources and Ore Reserves, 7,
8, 34, 472, 635, 767, 805, 839
Qualied Persons, 33-8
qualitative approach to sampling theory, 84
quantitative kriging neighbourhood analysis (QKNA), 306
overburden, 539
quality and quantity of samples, geostatistical criteria for

choosing an optimal ratio, 91-5
Palabora block cave, 412-13
quality assurance and quality control (QA/QC), 22-3, 44, 48,

50, 97, 106, 194, 681, 707, 716
parallel estimates, 24
quality control chain, 83
PCBC software, 547-55
922
blank samples, 56
good practice, 653-56
check standards, 55-6
control standards, 56
and JORC, 654, 656
eld duplicate samples, 56
key elements, 648-53

and life-of-mine planning, 649-50, 654-5
reconciliation, 10, 653, 656, 673, 682, 707, 709-11, 714-19
mine planning, medium- and short-term, 650-1, 655
between mine and mill, 749-54
Mineral Resource, 648-9, 654
code of practice, 755-63
mining production, 652, 655-6
comparisons, 747-8
Ore Reserves, 654
conclusions, 748, 763
processing plant, 652-3, 656
as a continuous improvement tool, 756
reconciliation, 653, 656
data analysis, 747
Reserve estimation, 537-9
Reserve evaluation in coal projects, 635-43
data sources, 740
reserve models and reconciliation, 742-3
denition, 739-40
Reserves and mine closures, 627-34
ore grade reconciliation problems, 749-54
resource and reserve valuation practices in Russia, 825-33
principles for the mining industry, 721-37

reconciliation (monitoring and exploiting the Reserve), 653
and localised uniform conditioning (LUC), 341-9
red (bureaucracy) tape, 608
Reex tool (drill core orientation), 121, 122, 125
relational databases
data entry, 49-50
data ow management, 50
database construction, 47-9
database safety and security, 50
design principles, 47-50
reporting
frameworks, 33-4
parallel, for Resource and Reserve statements, 832-3
standards and JORC Code, 780
system, JORC Code, 33-4, 35, 832-3
and technical work, 35-7
reporting and classication (Mineral Resources and Ore
Reserves), 7, 9, 767-70
borehole coordinates, 829

conversion of Russian categories to CRIRSCO (Committee
for Mineral Reserves International Reporting Standards)
template, 828-9
cut-off parameters, 831
data availability and access, 829-30
economic parameters, 832
geological and economic evaluation, 825-6
historical development, 826-8
long-term mine planning, 831-2
main challenges, 829-33
manual versus automated estimation, 830
mindset, 830
parallel reporting, 832
re-allocating resource categories, 830-1
suitability of mine methodology equipment, 831
transparency, 832
trust in assessments, 831
vertical integration of companies, 832
yearly reconciliation, 831
Competent Persons criteria, 768-9
resource characterisation, 470-1
governance, 768
resource condence classication, 273
implications for reporting, 769-70
accurate and precise data collection, 44
practical interpretation of the code and guidelines, 767-8
other important measures, 45
reporting and converting Resources to Reserves, 805-813

accuracy, condence and quality, 811-13
conclusions, 813
sample correctness, 44-5

sound design, 43-4
Resource estimation, 23-5, 97, 263
Mineral Resources, 809
best practice guidelines, 264
Modifying Factors and Ore Reserves, 809-11
block size, 24-5
poor project outcomes, 813
case study, 305-8
classication, 25-6
technical study types, 807-9
cut-off grades, 23
representativeness, 84
cutting grades, 24
Reserve, monitoring and exploiting, 647-56
data analysis, 267-8

923
data ow management, 47-50
land access, 487-8
geostatistics, 24, 268
mine closure, 490-1
history, 266
Mineral Resources, 809
measurement of bulk density for, 97-107
Modifying Factors and Ore Reserves, 809-11
overview papers, 273
poor project outcomes, 813
parallel estimates, 24
Pre-Feasibility, 491
process, 266-74
sustainability of potential waste rock dumps, 489
Resource condence classication, 273
risk, 6, 573-7
waste and tailings storage, 489
risk evaluation (due diligence process), 579-84
revenue calculation, 440-1
in Russia, manual versus automated, 839
revenue factors (Ore Reserve estimation), 381, 479-80
reverse circulation chips, 199
synopsis, 264-6
reverse circulation drilling, 192
unsmoothed grade interpolation, 269
Rio Tinto Iron Ore (RTIO), 277-86, 451-6, 835-8
validating the Resource, 272-3
risk
volume model, 268-9
block cave mining, 544-5
volumevariance, sample search and block size issues,

270-1
clarifying and controlling, 9
see also Mineral Resource estimation
coefcients (economic ore/waste classication), 687-8
resource estimation in folded deposits, 351-61

accumulation processes, 355
complex and re-entrant folding, 357-8
folded mineralisation, 352-3
folding and faulting, 358
geometric transformations, 353-5
simple unfolding, 356-7
unfolding case study (Nova Deposit), 358-9
unfolding technique, when to apply, 359-60
Resource evaluation in coal projects, 635-43
resource growth system, 683-4
resource modelling
gold deposits, 668-70
resource nationalisation, 609-10
resource range analysis (RRA), 793-7
resource reporting (gold deposits), 670
resource validation (gold deposits), 670
resources
estimation criteria, 536-7
market inuence on, 468-9
Rio Tinto, 835-8
treatment, 536
Resource-to-Reserve conversion
accuracy, condence and quality, 811-13
beneciation, 488-9
and communication, 26-8
conclusions, 491, 813
environmental constraints, 487-92
924
in coal projects, geological and mining, 636-9

evaluating (due diligence process), 579-84
geology, Resources and Reserve estimation (Feasibility
Studies), 15
geotechnical and groundwater factors, 387-8
management and Sunrise Dam, 311-18
management in Feasibility Studies, 13-18
mine risk analysis, 587-9
mining design and scheduling (Feasibility Studies), 15
in Resource and Reserve estimation, 6, 573-7
technical risk analysis, 587-8
risks, mining industry and non-technical, 605-16
commercial risks (other), 615
conclusions, 615-16
risk from unlawful activity, 615
river diversions, 398-9
rock quality indices (RQD), 401
Russia, mine design stages in, 815-23
comparing international design formats, 817
conclusions, 823
design issues, 817-23
developing and constructing, 815-16
Russia, resource and reserve valuation practices in, 825-33
borehole coordinates, 829
conversion of Russian categories to CRIRSCO (Committee
for Mineral Reserves International Reporting Standards)
template, 828-9
cut-off parameters, 831
samples
data availability and access, 829-30
composite, 438-9
economic parameters, 832
grade control system, 680
geological and economic evaluation, 825-6

historical development, 826-8
long-term mine planning, 831-2
main challenges, 829-33
manual versus automated estimation, 830
mindset, 830
sealing porous (bulk density determination), 103

samples, quality and quantity (choosing an optimal ratio),
91-5
case studies, 93-5
methodology, 91-3
sampling, 22, 23, 47, 53-60
parallel reporting, 832
accuracy, 56-7
re-allocating resource categories, 830-1
and assaying, 83
suitability of mine methodology equipment, 831
automated, 89-90
transparency, 832
biases, 83-5, 89, 90
trust in assessments, 831
correctness, 84-5
vertical integration of companies, 832
due diligence, 581-2
yearly reconciliation, 831
errors, 91-2, 662-3, 741, 743-4

estimation of total, 57-60
St Ives Gold Mine, 707-20
eld, 53-4
background, 708-14
eld duplicate, 56
blast movement monitoring, 716
conclusions, 719
laboratory-based preparation, 54-5
crusher feed claims, 716-17
manual, 89-90
dilution trends, 717-18
practical considerations and shortcuts, 87-90
establishing new mines, 717
precision, 57-8
geological understanding, 714-15
problems, 45, 87, 90, 268
geology, 708
protocol optimisation, 664-6
grade control, 714
procedures, 53-7
grade estimation, 714
metal call factor (MCF), 707, 711, 714, 715, 717, 718, 719
and scale-up (Feasibility Studies), 16
metallurgical accounting methods, 718-19
single-stage, 89
mining, 708-9
theory, 44, 84, 85
mining history, 707-8
warnings, 666
mining recovery, 710-11
worst-case policy technique, 45, 87-9, 90
monthly reporting, 711-14

multiple mines sources, 717
ore spotting, 716
planned dilution, 709-10
preproduction process, 715-16
processing, 709
sand replacement method (bulk density determination),

101-2
Savage River mine, 247, 250-1
direct-to-block implicit modelling workow, 247, 252-6
explicit modelling workow, 251-2
scenario-based project evaluation (SBPE), 593-602
quality assurance/quality control (QA/QC) protocols, 707,

716
avoiding double smoothing, 596
reconciliation terminology, 709-11
conditional simulations models, 597-8
reconciliations, 707, 714-19
design alternatives, 598-9
staff turnover, 718
kriged models, 598
stratigraphic controls, 717
output and analysis, 599-600
unplanned dilution, 710
practical aspects, 597-600
case study, 600-2
Salt Creek Gold Deposit (case study), 199-201
scenarios for externalities, 600
sample correctness, 44-5
variability of mineralisation, 595-6
sample preparation, 57-8
schedules for proactive stockpile planning, 619-26
sample selection, 438
analysis of variation, 625-6
sample spacing, 583
application to iron ore, 626

925
building conditional simulation models, 621-5
Takeovers Panel, 773
geological setting, 620-1
team-based estimation and classication, 19, 26-9
reporting within schedule, 625
technical assessment (Mineral Resources), 581-4
scope elements for mineral projects, 510-11
technical expert reports, 776-7
scoping guidance, 449
scoping level, 449
scoping outcome, 449
televiewer technology, 231-2
seam deposits, modelling requirements, 151, 152
titanium feedstock markets, 458-9
selective mining unit (SMU), 24-5, 195, 287, 289, 291, 341, 680, 743
total quality management (TQM), 749, 757
sequential Gaussian simulation (SGS), 690
Trade Practices Act (TPA), 846
sequential indicator simulation (SIS), 690
transparency, 832
short-wave infrared (SWIR), 199, 200
transport/logistics, 474-6
shut-off policy, 537
Tropicana Gold Mine, 301-8
single-stage sampling, 89
assumptions for non-linear estimation, 304-5
site infrastructure, 476
exploration history, 302
linear versus non-linear estimation, 303-4
social (community engagement) factors
mineralisation, 302-3
regional geology, 302
Ore Reserve estimation, 382-3
Resource estimation (case study), 305-8
social and environmental impact assessment (SEIA), 487

social risk, 609
software
uncertainty in schedules for proactive stockpile planning,

619-26
grade control, 191
analysis of variation, 625-6
PCBC, 547-55
application to iron ore, 626
see also block caving software
building conditional simulation models, 621-5
sparse blasthole spacing, 690-6

spotted dog classications, 800-1
geological setting, 620-1

reporting within schedule, 625
statistical process control (SPC), 749
uncertainty management, 29
stockpiles
underground mining
caving methods, 406-7, 410
reconciliation, 746
computer software, 505-6
structural geology, 216-17
design, 374, 376, 396-7, 402-4, 405-7
structural patterns of real deposits, 214-16
geotechnical, 406
structural symmetry, 211
mine design, 802
study-derived data, 482
mining dilution and losses, 415-18
Sunrise Dam Gold Mine, 311-18
non-caving methods, 407
Cosmo mineralisation, 315-16
non-economic factors, 409
discovery, 311-13
and Ore Reserve estimation, 415, 802
geology of resources, 313-14
orebody geometry, 406
gold distribution, 314
orebody grade, 406
GQ mineralisation, 315, 316-17
mineralisation styles, 313-14
Resource to Reserve conversion, 802
open pit mining, 311-13
stoping, 410
underground mine, 314

underground resources, 314-15
sustainable development, 383
see also open pit to underground mining (transition)

uniform conditioning (UC), 288, 301, 341-2
unlawful activity, risk from, 615
unsmoothed grade interpolation, 269
tabular geometry modelling, 223-6

tabular modelling, 226-8
uranium in situ leaching project, quantication operational

losses (case study), 95
tailings storages, 398-9, 489

takeover consent requirements, 839-40
926
variography analysis, 91-2, 148, 242, 243, 282, 344-5
Vermelho project, 619-21
and geological modelling, 247, 248-50
Verti-Ori system (drill core orientation), 121, 125
wireframing solids, 147
volume point modelling, 223
worst case policy (WCP) technique (sampling), 45, 87-9, 90
nal result and precautions, 88-9

Walker Lake data set, 366
lowest grade of interest, 87-8
waste dumps (mine design), 374, 397, 405, 489
mineral species, 88
wastes
multi-element deposits, 88
hazardous, 488
rock types, 88
sources of error, 721-6

water displacement methods (bulk density determination),
99-101
X-ray uorescence (XRF) assay procedures, 54, 55, 277, 281

X-ray plunge projection, 207-18
water management, 488
conclusions, 217-18
water supply, 475-6
maximum intensity projection (MIP), 207, 211-14, 216, 217
weather risk, 609
modelling mineral deposits, 217
Whittle optimisation, 285, 409, 506, 525-8, 550, 552
perspectival anamorphosis, 208-10
wireframe creation, 240-2
structural geology, 216-17
wireframe-free geological modelling, 247-58
structural patterns of real deposits, 214-16
Savage River magnetite deposit, 250-1

Savage River mine direct-to-block implicit modelling
workow, 247, 252-6
Savage River mine explicit modelling workow, 251-2
wireframes
3D, 247
structural symmetry, 211

Yandi mine grade control procedures, 93-4
zircon, 459-60
927
Foreword | Second edition

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John Baldwin FAusIMM
Steering Committee Chair
1. King, H F, McMahon, D W and Bujtor, G J, 1982. A guide to the understanding of Ore Reserve estimation, The AusIMM Proceedings, 281, 21 p (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Foreword | First edition

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G R (Bob) Appleyard FAusIMM(CP)
Steering Committee Chair
Acknowledgements | Committee
Steering Committee
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Acknowledgements | Reviewers
The AusIMM would like to thank the following people for their contribution
towards enhancing the quality of papers included in this volume:
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Second edition, Monograph 30

MINERAL RESOURCE AND ORE RESERVE ESTIMATION

MINERAL RESOURCE AND

The Australasian Institute of Mining and Metallurgy 2014

FRONT COVER IMAGES

J T Baldwin, J H Lew and

Managing Risk in Feasibility Studies

Common Sense and Good Communication Effective Team-Based

JORC and the Canadian Institute of Mining, Metallurgy and Petroleum

Overview The Resource Database

S Roden and T Smith

Geological Data Collection for Reliable Coal Resource Estimation

M F Gazley and L A Fisher

Measurement of Bulk Density for Resource Estimation Methods,

I T Lipton and J A Horton

Collection of Geotechnical Data from Drill Holes

Chapter 2 | The Resource Database

Chapter 3 | Geological Interpretation and Geological Modelling

J H Duke and P J Hanna

A Waltho, S Kristensen and

J F H Barnes and B L Gossage

H Hoogvliet, A Grieve and

D J Haddow and E J Cowan

The Pursuit of Best Practice and Use of Innovative Techniques Case

E J Cowan, K J Spragg and

Overview Mineral Resource Estimation

I Glacken and A Trueman

C De-Vitry, J Vann and

M Kent, B Catto, M Doyle,

Estimation of Underground Mineral Resources at the Sunrise Dam

G Jones, B Gibson and

O Rondon and A Trueman

I Glacken, P Blackney, D Gray

Drilling of Mineral Resources Towards Better Investment Decisions

Chapter 4 | Mineral Resource Estimation

Chapter 5 | Non-Resource Inputs to Estimation of Ore Reserves

Selecting a Mining Method for Metalliferous Orebodies

Geometallurgical Guidelines for Miners, Geologists and Process

G Danckert and L Fouch

Case Study Marketing of Industrial Minerals Iluka Resources

Mineral Resources and Ore Reserves of Industrial Minerals Markets

S Border and B Butt

Environmental Constraints on Resource-to-Reserve Conversion

M Ridd, P Eaglen and

Overview Ore Reserve Estimation

M E White and I Harrington

S Butel and A Ferrier

Reserve Estimation for Block Cave Mines Using PCBC

Chapter 6 | Ore Reserve Estimation

Chapter 7 | Risk in Resource and Reserve Estimation

Evaluating Resource Risk The Due Diligence Process

J Vann, S Jackson, A Bye,

A Trench, D Packey and

Back to Basics Geological and Mining Risks and Financial Issues on

H Arden and W Lewis

Effective Grade Control Systems

S Rose and G Fahey

J Donaldson, C Ferguson and

R Hargreaves and C Morley

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