Mineral Resource and Ore Reserve Estimation PDF

MINERAL RESOURCE AND
ORE RESERVE ESTIMATION

THE AUSIMM GUIDE TO
GOOD PRACTICE
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
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

J T Baldwin, J H Lew and 3
Overview M F Whitham
Managing Risk in Feasibility Studies P L McCarthy 13
Common Sense and Good Communication – Effective Team-Based J Vann, P R Stephenson, 19

(VWLPDWLRQDQG&ODVVLÀFDWLRQRI0LQHUDO5HVRXUFHVDQG2UH5HVHUYHV S Jackson and G Pilger
JORC and the Canadian Institute of Mining, Metallurgy and Petroleum J Coombes 33
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Chapter 2 | The Resource Database

Overview – The Resource Database N Hanson 43
'HVLJQ3ULQFLSOHVRI5HODWLRQDO'DWDEDVHVDQG0DQDJHPHQWRI'DWD M Z Abzalov 47
Flow for Resource Estimation
6DPSOLQJDQG$QDO\VLV3URWRFROVDQG7KHLU5ROHLQ0LQHUDO S Roden and T Smith 53

([SORUDWLRQDQG1HZ5HVRXUFH'HYHORSPHQW
Geological Data Collection for Reliable Coal Resource Estimation D R Green 61
$5HYLHZRIWKH5HOLDELOLW\DQG9DOLGLW\RI3RUWDEOH;5D\ M F Gazley and L A Fisher 69

)OXRUHVFHQFH6SHFWURPHWU\S;5)'DWD
+RZ6DPSOLQJ%LDVHV&DQ,QGXFH'HFLVLRQ0DNHUVWR0DNH:URQJ P M Gy and 83
'HFLVLRQV²$Q,QWURGXFWLRQWR4XDOLWDWLYH6DPSOLQJ7KHRU\ D M François-Bongarçon
3UDFWLFDO&RQVLGHUDWLRQVDQG6KRUWFXWVLQ6DPSOLQJ D M François-Bongarçon 87
*HRVWDWLVWLFDO&ULWHULDIRU&KRRVLQJDQ2SWLPDO5DWLREHWZHHQ4XDOLW\ M Z Abzalov 91
DQG4XDQWLW\RI6DPSOHV²0HWKRGDQG&DVH6WXGLHV
Measurement of Bulk Density for Resource Estimation – Methods, I T Lipton and J A Horton 97
*XLGHOLQHVDQG4XDOLW\&RQWURO
Collection of Geotechnical Data from Drill Holes A van As 109
8VHDQG$EXVHRI2ULHQWHG'ULOO&RUH B K Davis 121
Chapter 3 | Geological Interpretation and Geological Modelling

2YHUYLHZ²*HRORJLFDO,QWHUSUHWDWLRQDQG*HRORJLFDO0RGHOOLQJ E J Cowan 137
*HRORJLFDO,QWHUSUHWDWLRQIRU5HVRXUFH0RGHOOLQJDQG(VWLPDWLRQ J H Duke and P J Hanna 145

%HVW3UDFWLFHLQ&RDO([SORUDWLRQDQG5HVRXUFH(YDOXDWLRQ A Waltho, S Kristensen and 155
C Harman
The Do’s and Don’ts of Geological and Grade Boundary Models and J F H Barnes and B L Gossage 175
:KDW<RX&DQ'R$ERXW,W
$&KHFNOLVWIRU*UDGH&RQWURO H Hoogvliet, A Grieve and 189

D Sims
&DOFXODWHG0LQHUDORJ\DQG,WV$SSOLFDWLRQV S Halley 199
¶;5D\3OXQJH3URMHFWLRQ·²8QGHUVWDQGLQJ6WUXFWXUDO*HRORJ\IURP E J Cowan 207

Grade Data
3UDFWLFDO,PSOLFLW'\NH0RGHOOLQJIRU5HVRXUFH(VWLPDWLRQ²1HZPRQW D J Haddow and E J Cowan 221

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The Pursuit of Best Practice and Use of Innovative Techniques – Case R Gradim, J Donaldson, 229
6WXGLHVLQ*HRORJLFDO,QWHUSUHWDWLRQDQG0RGHOOLQJ*ROG)LHOGV² J Levett, M Briggs,
*URZWKDQG,QWHUQDWLRQDO3URMHFWV M Crawford, M Dusci and
A Trueman
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3URSRVLWLRQ" M R Everitt
Chapter 4 | Mineral Resource Estimation

Overview – Mineral Resource Estimation I Glacken and A Trueman 263
0LQHUDO5HVRXUFH(VWLPDWLRQRIWKH%URFNPDQ,URQ2UH'HSRVLWLQ B Sommerville, C Boyle, 277

the Pilbara Region by Rio Tinto Iron Ore N Brajkovich, J Phillips and
A-A Latscha
0XOWLYDULDWH,URQ2UH'HSRVLW5HVRXUFH(VWLPDWLRQ²$3UDFWLWLRQHU·V C De-Vitry, J Vann and 287

Guide to Selecting Methods H Arvidson
7URSLFDQD*ROG0LQH:HVWHUQ$XVWUDOLD²$&DVH6WXG\RI M Kent, B Catto, M Doyle, 301

1RQ/LQHDU0LQHUDO5HVRXUFH(VWLPDWLRQ D Gibbs, M Matheson,
R Singer, B Kendall and
J Vann
Estimation of Underground Mineral Resources at the Sunrise Dam F Clark, J T Carswell, 311
*ROG0LQH²$&DVH6WXG\LQ5LVN0DQDJHPHQW 1$6FKRÀHOGDQG0(ULFNVRQ
0LQHUDO6DQGV²6RPH$VSHFWVRI(YDOXDWLRQ5HVRXUFH(VWLPDWLRQDQG G Jones, B Gibson and 319

5HSRUWLQJ V O’Brien
$3UDFWLWLRQHU·V*XLGHWRWKH,GHQWLÀFDWLRQ&ODVVLÀFDWLRQDQG K B Preston 329

Estimation of Inventory Coal and Coal Resources
$3UDFWLWLRQHU·V*XLGHWR5HFRYHUDEOH5HVRXUFH(VWLPDWLRQ8VLQJ O Rondon and A Trueman 341

/RFDOLVHG8QLIRUP&RQGLWLRQLQJ
5HVRXUFH(VWLPDWLRQLQ)ROGHG'HSRVLWV²$5HYLHZRI3UDFWLFHDQG I Glacken, P Blackney, D Gray 351

Case Studies and N Fogden
Drilling of Mineral Resources – Towards Better Investment Decisions 1$6FKRÀHOG 363

Chapter 5 | Non-Resource Inputs to Estimation of Ore Reserves –
The Modifying Factors
2YHUYLHZ²1RQ5HVRXUFH,QSXWVWR(VWLPDWLRQRI2UH5HVHUYHV²7KH M F Whitham 373
Modifying Factors
7KH,QÁXHQFHRI*HRWHFKQLFDODQG*URXQGZDWHU)DFWRUVRQ2UH T D Sullivan 385

Reserve Estimation
Selecting a Mining Method for Metalliferous Orebodies F Kaesehagen 401
7UDQVLWLRQIURP2SHQ3LWWR8QGHUJURXQG0LQLQJ I T Ross 409
0LQLQJ'LOXWLRQDQG/RVVHVLQ8QGHUJURXQG0LQLQJ P L McCarthy 415
7KH$VVHVVPHQWDQG0DQDJHPHQWRI&RDO5HFRYHU\LQ2SHQ3LW0LQHV A Scott 419
0HWDOOXUJLFDO,QSXWWRWKH'HWHUPLQDWLRQRI2UH5HVHUYHV P J Lewis 433
Geometallurgical Guidelines for Miners, Geologists and Process D David 443

Engineers – Discovery to Design
$VVHVVPHQWRI,URQ2UH5HVHUYHV²5LR7LQWR·V3LOEDUD([SHULHQFH G Danckert and L Fouché 451
Case Study – Marketing of Industrial Minerals – Iluka Resources V E Hugo 457
Mineral Resources and Ore Reserves of Industrial Minerals – Markets S Border and B Butt 467
and Other Modifying Factors
,QIUDVWUXFWXUHIRU0LQLQJ'HYHORSPHQWV F Blatt 473
7KH,QÁXHQFHRI5HYHQXHDQG&RVW)DFWRUVRQ2UH5HVHUYH(VWLPDWLRQ R P Watkins 479
Environmental Constraints on Resource-to-Reserve Conversion M Ridd, P Eaglen and 487

C Unger
&RPPXQLW\&RQVXOWDWLRQ²7KH2N7HGL([SHULHQFH M Werror 493
Chapter 6 | Ore Reserve Estimation

Overview – Ore Reserve Estimation G Dunstan 503
)HDVLELOLW\6WXGLHV²6FRSHDQG$FFXUDF\ M E White and I Harrington 507
5HÁHFWLRQVRQ)URQW(QG/RDGLQJLQ0LQH3URMHFW'HYHORSPHQW J H Shillabeer 519
:KLWWOH2SWLPLVDWLRQ²7KH0RQH\0LQLQJ0HWKRGRORJ\DQG,WV G Whittle 525

,PSDFWRQ2UH5HVHUYHV
0D[LPLVLQJWKH9DOXHRI2SHQ3LW*ROG5HVHUYHV²:KHUH$UH:H S Butel and A Ferrier 529

*HWWLQJ,W5LJKW"
%ORFN&DYLQJ6RIWZDUH²3UDFWLFDO$SSOLFDWLRQV J-A Dudley 535
Reserve Estimation for Block Cave Mines Using PCBC T Diering 547
*HRWHFKQLFDO0RGLI\LQJ)DFWRUVWR%H&RQVLGHUHG:KHQ'HWHUPLQLQJ R W Seedsman 557

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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
7KH,PSRUWDQFHRI8QGHUVWDQGLQJ8QFHUWDLQW\DQG5LVN$VVRFLDWHG M Berry 585

ZLWK$OO*HRORJLFDO,QSXWVWR2UH5HVHUYHV
6FHQDULR7KLQNLQJ²$3RZHUIXO7RROIRU6WUDWHJLF3ODQQLQJDQG J Vann, S Jackson, A Bye, 593

(YDOXDWLRQRI0LQLQJ3URMHFWVDQG2SHUDWLRQV S Coward, S Moayer,
G Nicholas and R Wolff
1RQ7HFKQLFDO5LVNVDQG7KHLU,PSDFWRQWKH0LQLQJ,QGXVWU\ A Trench, D Packey and 605

J P Sykes
([SRVLQJ8QFHUWDLQW\LQ6FKHGXOHVIRU3URDFWLYH6WRFNSLOH3ODQQLQJ J Coombes, C Standing, 619

R Lacourt Rodrigues and
C Queiroz
5HVHUYHV5HVHUYHVDQGQRWD7RQQHWR0LQH²$6WXG\RI5HVHUYHV M Creech 627

5HSRUWHG3ULRUWR0LQH&ORVXUH
Back to Basics – Geological and Mining Risks and Financial Issues on H Arden and W Lewis 635
5HVRXUFHDQG5HVHUYH(YDOXDWLRQLQ&RDO3URMHFWV
Chapter 8 | Monitoring and Exploiting the Reserve

2YHUYLHZ²0RQLWRULQJDQG([SORLWLQJWKH5HVHUYH C Morley 647
3UHGLFWLQJWKH8QSUHGLFWDEOH²(YDOXDWLQJ+LJK1XJJHW(IIHFW*ROG S C Dominy 659

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Effective Grade Control Systems S Rose and G Fahey 679
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DQG6WRFKDVWLF6LPXODWLRQV²([DPSOHV&RPSDULVRQVDQG$SSOLFDWLRQV M Godoy
3ODQQLQJ6WUDWHJLHVWR,QFUHDVH3URMHFW9DOXH T Elkington 701
,QWHUSUHWLQJ/RQJ7HUP0LQHWR0LOO7UHQGVDW6W,YHV*ROG0LQH J Donaldson, C Ferguson and 707

E Murray-Hayden
5HFRQFLOLDWLRQ3ULQFLSOHVIRUWKH0LQLQJ,QGXVWU\ H M Parker 721
0LQLQJ5HFRQFLOLDWLRQ²$Q2YHUYLHZRI'DWD&ROOHFWLRQ3RLQWVDQG R Hargreaves and C Morley 739

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$6WUDWHJ\WR0LQLPLVH2UH*UDGH5HFRQFLOLDWLRQ3UREOHPVEHWZHHQ F F Pitard 749

the Mine and the Mill
Guide to Creating a Mine Site Reconciliation Code of Practice C Morley 755

Chapter 9 | Classif ication and Reporting
2YHUYLHZ²&ODVVLÀFDWLRQDQG5HSRUWLQJ J Coombes, G Fahey and 767
P T Stoker
,VVXHVLQ&DSLWDO5DLVLQJVDQG'LVFORVXUH B Dodd 771
5HYLHZRI-25&&RGHDQG&RPSDULVRQZLWK1DWLRQDO,QVWUXPHQW P R Stephenson and 779

43-101 P T Stoker
(VWLPDWLQJDQG5HSRUWLQJ3RWHQWLDO0LQHUDOLVDWLRQDW%+3%LOOLWRQ² M Mullins, P Hodkiewicz, 791

7KH8QFRQVWUDLQHG9LHZ J McCluskey, C Carey and
J Terry
0LQHUDO5HVRXUFH&ODVVLÀFDWLRQ²,W·V7LPHWR6KRRWWKH¶6SRWWHG'RJ· P R Stephenson, A Allman, 799

D P Carville, P T Stoker,
P Mokos, J Tyrrell and
T Burrows
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Mine Design Stages in Russia A Tverdov and S Nikishichev 815
5HVRXUFHDQG5HVHUYH9DOXDWLRQ3UDFWLFHVLQ&RXQWULHV)RUPLQJWKH H Arden and A Tverdov 825

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Rio Tinto Mineral Resource and Ore Reserve Governance S J Hunt and C S Eldridge 835
/LDELOLW\,VVXHV$ULVLQJLQ5HODWLRQWR([SORUDWLRQ0LQHUDO5HVRXUFH F Gardiner-Hill 839

DQG2UH5HVHUYH5HSRUWV,QFOXGHGLQ7DNHRYHU'RFXPHQWV
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&RPSHWHQW3HUVRQV²%H\RQG-25&&RGH5HTXLUHPHQWV J Coombes 849
Appendix | The JORC Code 2012

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

$XWKRU,QGH[ 907
6XEMHFW,QGH[ 909
The Ore Reserve Estimation Process
Iterations of Technical, Financial and Risk Assessments
Risk and Sensitivity Monitoring the
Exploration and Statistical Analysis, Modifying Factors Assessments Resources and
Data Collection Geological Mineral Resource (Mining, Metallurgical, Reserves
Interpretation Estimation, Economic, Marketing, Ore Reserve
The Resource and Modelling Classification and Legal, Environmental, Estimation, Grade Control,
Database Reporting Social and Government) Classification and Production and
Reporting Reconciliation

J T Baldwin, J H Lew and 3
Overview M F Whitham
Managing Risk in Feasibility Studies P L McCarthy 13

Common Sense and Good Communication – Effective Team-Based Estimation and Classification of Mineral J Vann, P R Stephenson, 19
Resources and Ore Reserves S Jackson and G Pilger
JORC and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards – Major Changes J Coombes 33
and Developments for Competent Persons
HOME
Overview
J T Baldwin1, J H Lew2 and M F Whitham3
ABSTRACT
7KLVRYHUYLHZIRFXVHVRQWKHSURJUHVVPDGHLQWKHVFLHQFHVLQFHMineral Resource and Ore Reserve Estimation – The AusIMM Guide
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1. FAusIMM, 7A Rathmines Street, Toorak Vic 3142. Email: johntbaldwin@bigpond.com

2. MAusIMM, Geologist Study Manager, Independent Consultant, Corporate Technical Consulting, 7 Pisces Court, Donvale Vic 3111. Email: jonathon.lew@bigpond.com
3. FAusIMM, Mining Engineer, Independent Consultant, Sheerline Investments, 17 Palm Court, Meikleville Hill Qld 4703. Email: mjwhitham@bigpond.com
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Managing Risk in Feasibility Studies

P L McCarthy1
ABSTRACT
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1. FAusIMM(CP), Director, AMC Consultants Ltd, Level 19, 114 William Street, Melbourne Vic 3000. Email: pmccarthy@amcconsultants.com.au
WHAT IS A FEASIBILITY STUDY?

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TABLE 1
Types of studies (after Bullock, 2011).
Author Date Level I Level II Level III Level IV
Taylor 1976 Preliminary Intermediate Feasibility
Hustrulid Conceptual Preliminary Feasibility
Resource calculation Preliminary Feasibility
Basic engineering
Barnes (reported from Preliminary Indicative Definitive
1997
Australia) Scoping Preliminary Detailed
Basic engineering
Order of magnitude Pre-Feasibility Bankable
Mackenzie 2006 Scoping Pre-Feasibility Definitive
Bullock 2011 Preliminary Feasibility Intermediate Feasibility Final Feasibility Basic engineering
Most common usage 2000 to 2011 Scoping Pre-Feasibility Feasibility Basic engineering

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Common Sense and Good

Communication – Effective Team-Based
Estimation and Classification of Mineral
Resources and Ore Reserves
J Vann1,2, P R Stephenson3, S Jackson4,5 and G Pilger6
ABSTRACT
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and with respect to the purpose of the exercise?
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1. FAusIMM, Vice President – Mineral Resources, AngloGold Ashanti, PO Box 6149, Swanbourne WA 6010. Email: john.edward.vann@gmail.com
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: pstephenson@amcconsultants.com
4. FAusIMM, Managing Director, Quantitative Group, PO Box 1304, Fremantle WA 6959. Email: sj@qgroup.net.au
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: gustavo.pilger@bhpbilliton.com
INTRODUCTION
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FIG 2 - Documentation and Public Report (issued with the Competent Person’s consent) within the JORC Code principles-based reporting.
FIG 3 - Technical Report (triggered by a public news release by the board) within the Canadian reporting framework.

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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 ‘… a minimum of five years relevant experience in the style of
the Technical Report’ 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 Assumed as part of the technical work; disclosed in comments on JORC
of data 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 Yes Yes
work
Certificate/letter of consent Certificate and consent Consent
Familiarity NI 43-101, 43-101CP, other regulatory requirements, the CIM Definitions Securities exchange listing rules, guidance notes, ASIC regulatory guides
Standards, CIM Best Practices Guidelines for Mineral Resources and Mineral and the JORC Code, including all guidance notes and Table 1
Reserves, CIM Best Practices Guidelines for Mineral Exploration and (if
applicable) CIM Guidelines for Reporting of Diamond Exploration Results

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Overview – 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 P M Gy and 83
Sampling Theory D M François-Bongarçon
Practical Considerations and Shortcuts in Sampling D M François-Bongarçon 87
Geostatistical Criteria for Choosing an Optimal Ratio between Quality and Quantity of Samples – Method and M Z Abzalov 91
Case Studies
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
Overview – The Resource Database

N Hanson1
ABSTRACT
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Sampling and Analysis Protocols and

Their Role in Mineral Exploration and
New Resource Development*
S Roden1 and T Smith2
ABSTRACT
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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: trevleona@bigpond.com
* 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).
INTRODUCTION
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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: greengeo@optusnet.com.au
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: michael.gazley@csiro.au
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: louise.fisher@csiro.au
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).

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 Lβ1 peak (9.67 keV) of W can interfere on the Lα1 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 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 μm). 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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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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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.
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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.

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PUBLIC REPORTING RECOMMENDATIONS An example of a table to present analysis conditions of portable X-ray
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How Sampling Biases Can Induce

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P M Gy1 and D M François-Bongarçon2
ABSTRACT
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2. FAusIMM, President, AGORATEK International Consultants, Inc, 2/270 West 5th Street, Vancouver BC V7M 1K1, Canada. Email: dfbgn2@gmail.com
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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 2 - Sketch explaining the principals of the proposed method allowing separating contributions to the
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Statistical parameters deduced from pairs of the blasthole samples, Yandi iron ore mine.
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
Sample duplicates analysis Standard deviation (1) 0.8 1.4 1.2
Standard deviation (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
Pairwise relative variogram Nugget effect 0.0450 0.0110 0.0003
Geological factor 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.
Al2O3 R-SiO2 LOI
Number of sample pairs 1869 1869 2107
Mean (1) % 27.1 6.9 18.7
Mean (2) % 27.0 6.9 18.6
Sample duplicates analysis Standard deviation (1) 16.6 6.4 7.7
Standard deviation (2) 16.6 6.4 7.6
Correlation 0.98 0.96 0.99
Relative sampling variance (Equation 3) 0.0385 0.0569 0.0217
Pairwise relative variogram Nugget effect 0.0600 0.1100 0.0250
Geological factor Nugget effect – relative sampling variance 0.0215 0.0531 0.0033
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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.
Case 1 Case 2 Case 3
CV% 10.1% 18.3% 27.2%
a
Total error (misclassified ore and waste selectively mineable blocks) 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: ilipton@golder.com.au
2. FAusIMM(CP), Principal Geologist, Golder Associates Pty Ltd, 147 Coronation Drive, Milton Qld 4064. Email: jhorton@golder.com.au
INTRODUCTION
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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 ms 2

density measurement, depending on the type and volume of td = V = r #c d m # l
V 2
materials available.
If the core is broken by planar features such as bedding,
joints and shears, and squaring the ends of the core is not
DETERMINATION OF BULK DENSITY FROM practical, the method can be adapted without cutting the
core. In such cases, the length of the sample is the distance
SMALL SAMPLES between the midpoints of the two planar features. The density
Several practical methods of measuring the bulk density of calculation is the same.
rocks are available. Each method has its own advantages, This method can also be extended to half core samples,
disadvantages and sources of error, hence it is important permitting density measurements to be obtained
to check the results from one method against the results retrospectively from older previously cut core. The
obtained by a second method. The keys to minimising errors measurement and calculation are more difÀcult and the
are a systematic approach to the task and careful monitoring process of half core sampling will result in breakage of the
of the sampling and measurement procedures. core, increasing the likelihood of sample selection bias, so
It is important that the samples used for density full core measurements are always preferred. If the core saw
measurement are representative of the materials for which has been correctly aligned along the axis of the core, the half
Resource or Reserve estimates are to be determined. If the core will be slightly smaller than a complete hemisphere.
materials are variable, particularly in mineral composition The following parameters must be determined by averaging
or porosity, subsampling may easily become biased. multiple calliper measurements:
For example, massive hard material may be sampled • core length (l)
preferentially over softer leached materials, or high-grade
• core segment width (w) also known as the arc or chord
material may be sampled in preference to low-grade material.
length
This is particularly problematic when sampling from
stockpiles, costeans or mine faces. When using drill core, • core segment height (h).
measurements of individual pieces of drill core (subsamples) The calculation for the cross-sectional area (A) of the half
may be satisfactory in relatively homogeneous materials. core is (Anon, n/d):
However, it is preferable to adopt a constant sample length
2
and contiguous sample intervals in order to minimise the risk 2 ^ 2 2h 3
A = c w + h m cos-1e w - 4h o - w + wh
of biasing the sample selection. 8h 2 2 2
^w + 4h h ^16 hh 4
All samples should be geologically logged. Features such
as rock type, mineral assemblage, texture, structure, degree where:
of oxidation and quality of the sample should be recorded. cos-1 is in radians and hence, volume (V): V = l × A
Several methods for measuring the bulk density of small For small core sizes, the calliper method is sensitive to
samples are outlined below. The selection of the best irregularities or errors in the measurement of the diameter
method for a particular sample will depend on the physical of the core. This problem is progressively reduced as core
characteristics of the material, the type of sample and the diameter is increased. Since the in situ volume of the core
practical constraints of the working environment, such as the is the variable of interest, care must be taken when dealing
type of weighing equipment that is available. The moisture with materials that swell after removal from the core
content of the samples must also be taken into account. barrel. If swelling has occurred, it is necessary to correct the
Hence, all samples must, at some point, be dried until their measurements of the core diameter by reducing them to the
mass stabilises. The time required to do this is explicitly internal diameter of the core barrel or to infer the diameter of
speciÀed by some methods but not by others. Since the rate core from adjacent geological units that have not expanded.
at which geological samples can be dried varies signiÀcantly Swelling may also affect the length of the core but determining
depending on the size of sample, mineral assemblage and a correction factor to account for this is more difÀcult, since
drying equipment, a suitable drying procedure should be there is likely to be no reference point for estimating the
conÀrmed by experimentation. This is discussed below. in situ core length.
The procedure has the advantages of being very simple
Calliper method and generally requires no special equipment. If the core is
This method is applicable to good quality drill core samples. saturated or contains minerals that adsorb large amounts of
It is described in the Australian Standard, Methods of water, drying times may extend to several days. If the core is
sampling and testing asphalt – determination of bulk density to be sampled for assay by sawing, it must be reassembled.
of compacted asphalt – mensuration method (Standards The method accounts for macro pore space that may not be
Australia, 2005c). accounted for with water immersion methods. The calliper
The ends of the core sample should ideally be cut with method offers a simple quick ISBD measurement that can
a saw perpendicular to the long axis of the core to create a also be implemented to provide cross-checks against other
regular cylindrical sample. The diameter of the core (d) is methods.
determined with a pair of callipers, and the measurements
should be taken at several points and the results averaged. Water displacement methods
The length of the core (l) is determined with a tape measure. Most practical procedures for determining the density of a
The mass of the dry solids (ms) is determined by weighing the rock sample derive the volume of the sample from the volume
core after drying on an accurate and precise balance. of water displaced by the sample. There are many variations
The dry bulk density (ǒd ) is calculated by: on this theme depending on the physical characteristics of the

sample and the type of weighing equipment available. The • Slowly submerge the sample in a water-Àlled vessel and
volume of water displaced by the sample can be measured collect the displaced water in a measuring beaker.
either directly or can be derived using Archimedes’ principle. • Weigh the water displaced by the sample (mw).
This states that a solid submerged in a Áuid will experience The dry bulk density (ǒd) is calculated as the mass of dry
an upward force equal to the weight of Áuid that it displaces.
sample divided by the volume of the sample after accounting
Thus, if the Áuid is water, the volume of the displaced water
for the volume of wax. Hence:
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 ms
solid in water. Some of the possible implementations of this td =
mw - (ms + wax - ms)
principle are outlined below. Note that in all cases, weights
twax
must be adjusted to take into account the weight of the
container holding the sample.
The difÀculty of collecting all the displaced water still
remains, however.
Water displacement method 1
This is a method speciÀed by the American Society for Testing Water displacement method 3
of Materials procedure for the Determination of the speciÀc
Direct measurement of the volume of water displaced by a
gravity of lump coke samples (American Society for Testing
sample is avoided by methods that use Archimedes’ principle.
of Materials, 1979); however, it can be used to determine
For competent samples that do not absorb water, the following
the dry bulk density of reasonably competent rock samples
simple buoyancy method may be used:
that do not contain large cavities. The sample is assumed
to displace a volume of water equal to its own bulk volume • Dry the sample at 110°C for 24 hours.
minus the volume of water absorbed into the sample. The • Weigh the sample to determine the dry mass (ms).
procedure is as follows: • Place the specimen in a basket and weigh it, suspended
• Dry the sample at 110°C for 24 hours. from a balance, in water. Subtract the weight of the basket
• Weigh the sample to determine the dry mass (ms). in water to determine the weight of the sample in water
• Slowly submerge the sample in a water-Àlled vessel and (ms in water).
collect the displaced water in a measuring beaker. The dry bulk density (ǒd) is calculated as the mass of sample
• Weigh the water displaced by the sample (mw). in air divided by the difference between the mass of the
• Retrieve the sample from the water vessel and weigh it sample in air and the mass of the sample in water. Hence:
to determine the mass of the sample plus absorbed water
ms
(msat). td =
ms - ms in water
The dry bulk density (ǒd) is calculated by:
ms Water displacement method 4

td =
mw + ^msat - msh A variation of water displacement method 2 using wax
to seal the sample is described in the Australian Standard,
The main practical difÀculty with this approach is the Methods of sampling and testing asphalt – Determination
collection of all the displaced water. Clearly, unless the vessel of bulk density of compacted asphalt – waxing procedure
is initially Àlled exactly to the point of overÁowing, the volume (Standards Australia, 2005a). This method can be used for
of water displaced by the sample will be underestimated. porous or friable rock samples. Rather than collecting the
Consistency in managing or breaking the water surface tension water displaced by the sample, the weight of the sample
is important as this can alter the volume readings. The method when suspended in water is determined. The procedure is
can be very time-consuming to carry out accurately. summarised as follows:
A variation of this method is to measure mw by reading • Air-dry the sample to constant mass.
the volume of water displaced from the graduations on the
• Weigh the sample to determine the dry mass (ms).
measuring beaker. Since for practical purposes the density of
water is 1.0 t/m3, the mass (mw) is the same as the volume. • Determine the density of the wax.
• Coat the sample with hot parafÀn wax. Allow the coated
Water displacement method 2 sample to cool to room temperature and then weigh it
Many highly weathered or clay-rich samples tend to slake or (ms+wax).
disintegrate when immersed in water. Water displacement • Transfer the specimen to a basket and weigh it, suspended
method 1 is unsuitable for such materials. To overcome this from a balance, in water. Subtract the weight of the basket
problem, the samples can be coated with wax after drying. A in water to determine the weight of the sample in water
water displacement method can then be used as follows: (ms+wax in water).
• Dry the sample at 110°C for 24 hours. The dry bulk density (ǒd) is calculated as the mass of dry
• Weigh the sample to determine the dry mass (ms). sample divided by the volume of the sample after accounting
• Determine the density of the wax (ǒwax). for the volume of wax. Hence:
• Completely seal the sample by coating the sample with ms
hot wax. td =
ms wax - ms
• Allow the coated sample to cool to room temperature and (ms wax - ms wax in water) - +
+ + twax
then weigh it (ms+wax).

The speciÀed drying procedure is likely to be very slow for The dry bulk density (ǒd) is calculated by:
many geological samples, so drying at 110°C for 24 hours is a
more practical option. ms
td =
ms + wax - ms
Water displacement method 5 ^m3 - m1h - ^m2 - m1h - t wax
It may be difÀcult to effectively seal highly porous rocks with
wax or quick-drying sprays. If the sample does not slake or Further examples of the implementation of water
disintegrate in water, an alternative method that allows the displacement methods with various types of balances are
sample to become saturated with water may be used. This presented in Read (1970).
procedure is described in Australian Standard, Methods of The American Society for Testing of Materials standard test
sampling and testing asphalt – determination of bulk density method for bulk speciÀc gravity and density of compacted
of compacted asphalt – presaturation method (Standards
bituminous mixtures using automatic vacuum sealing method
Australia, 2005b) and is summarised as follows:
(American Society for Testing of Materials, 2011) presents
• Dry the sample. a similar method in which cylindrical or cubic samples are
• Weigh the sample to determine the dry mass (ms). sealed in a plastic bag before being weighed in water.
• Suspend a basket beneath a balance, the basket being
submerged in a container of water and zero the balance. Sand replacement method
• Place the specimen in the basket, allowing sufÀcient time
for the sample to become saturated. Weigh the sample In situ Àeld measurements of bulk density can be made using
(msat in water). the sand replacement method. The method is described
• Remove the saturated sample from the water, surface-dry in Australian Standard, Methods for testing of soils for
the sample with a damp cloth and quickly weigh it in the engineering purposes. Method 5.3.1: soil compaction and
air (msat). density tests – determination of the Àeld density of a soil – sand
The dry bulk density (ǒd) is calculated by: replacement method using a sand-cone pouring apparatus
(Standards Australia, 2004), and an abridged description is
ms presented here. It involves digging a small hole of about 3 or
td =
msat - msat in water 4 L at a test site and Àlling the hole in a controlled manner with
sand of uniform grain size and known (calibrated) density. The
A similar method is provided in Australian Standard, sand is allowed to run into the hole until the hole is full. It must
Methods of testing rocks for engineering purposes, Method not be compacted. The apparatus (Figure 1) consists of:
2.1.2: rock porosity and density tests – determination of
• a plastic bottle with a valve and cone for pouring the sand
rock porosity and dry density – saturation and buoyancy
techniques (Standards Australia, 2005d). • a Áat metal template with a central hole that provides a
pattern for digging a cylindrical hole into the test material
The determination of the saturated mass in air for samples
and a Àrm base for the pouring equipment
with coarse pores and cavities on the external surface can
be difÀcult 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.
Container
5Lapprox
Water displacement method 6
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 Funnel
sample suspended in it. The procedure is as follows:
• Dry the sample at 110°C for 24 hours. Tap
• Weigh the sample to determine the dry mass (ms).
• Determine the density of the wax (ǒwax).
Cone
• Coat the sample with hot parafÀn 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). 160mmor
210mmapprox
• 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). Hole150mmor200mm
The increase in mass of the water container is equivalent (withoptionallocationlip,2mmhigh)
to the weight of the water displaced by the sample and
wire basket. FIG 1 - Equipment for sand replacement method.

• a cylinder of known volume for calibration of the pouring Obtaining a commercial supply of clean single-size sand
density of the sand. may be difÀcult for a remote Àeld operation so Àeld crews may
The pouring density of the sand (ǒsand) must be carefully resort to river or beach sand that has been graded by sieving.
calibrated using the same sand cone pouring apparatus as is The sand should be rounded and have a small size range,
used to deliver the sand to the test hole and the calibrating and it must be clean and dry. If the sand is to be recovered
cylinder. The mass of sand that Àlls the pouring cone (m3) for reuse, contamination must be avoided. The authors have
must also be determined. Each new batch of sand must observed thin plastic, such as food wrap, successfully being
be calibrated, since the pouring density depends on the used to line the test hole to prevent loss of sand into vughs
composition and geometry of the grains. and Àssures and to facilitate sand recovery.
Regular calibration of the sand is essential.
The Àeld procedure for measuring the bulk density at a test
site is as follows:
Core tray method
• Select a Áat test site. Any compacted or disturbed material
should be scraped away to leave a Áat undisturbed Highly weathered or altered drill core presents a particular
challenge for bulk density measurement. Commonly,
surface.
the core is highly broken and the mineralogical and
• Fix the template into place, Áush with the ground surface.
physical characteristics of the core may be highly variable.
Dig a cylindrical hole within the template. The hole Consequently, the pieces of core suitable for the measurement
should be approximately as deep as the template is wide. methods described above may be limited in number and
Do not dig underneath the rim of the template as sand may be unrepresentative of much of the material. In these
may not run freely into this space. circumstances, the risk of error in the bulk density estimate
• Collect all material dug from the hole in an airtight plastic will be relatively high.
bag. Moisture loss during digging should be prevented. It is useful to check the validity of estimates derived from
Weigh the material back at the laboratory/ofÀce, allowing subsamples of highly weathered or altered core by measuring
for the bag etc (m11). the bulk density of entire trays of drill core. This is possible if
• Fill the bottle with one-size sand and weigh the bottle (m9). core trays can be effectively air-dried, core loss is not extreme
• Fix the valve and cone to the bottle. Invert the bottle and and the empty core trays have a consistent mass (as is usually
place it on top of the template. Open the valve and allow the case with aluminium and plastic but not wood). The
the sand to Àll up the hole. procedure is as follows:
• When the sand has stopped running, close the valve, • Determine the weight of an empty core tray (m1). This
remove the valve and cone and reweigh the bottle and its only needs to be done once for each type of tray. Also
remaining contents (m10). Calculate the weight of sand in weigh a core block (m2).
the hole (m12) as: • From the core depth markers, determine the start and
Ànish depth of the core in the tray.
m12 = m9 - m10 - m3 • Measure the recovered core length (l).
• Check the diameter (d) of pieces of whole core with
• Calculate the wet bulk density (ǒwet) of the material from
callipers. Record the individual measurements, then
the hole as:
estimate the average diameter of the core for the whole
m11 tray to the nearest 0.1 mm. (The variations in calliper
twet = tsand # readings may be used later to assess the reliability of the
m12
density estimate.) Do not measure core that has swelled
The moisture content (MC) can easily be determined by in the tray. The objective is to determine the diameter that
subsampling the material removed from the hole, weighing the core occupied in the ground.
the wet subsample, drying the subsample and reweighing it. • Weigh the full tray of core (m3). Note the number of core
The dry bulk density can then be calculated as: blocks (n). Check that the balance is zero beforehand.
• Note any problems or unusual geology in the
t wet comments Àeld (eg wet core, broken tray, difÀculties in
t d = 100 # measurements, massive sulÀde, etc).
100 + MC
The dry bulk density (ǒd) is calculated as:
The sand replacement method is a Àeld procedure and if
correctly executed can produce robust in situ measurements. d 2
The Australian Standard is designed to control delivery of c2m
td = l # r #
free-Áowing sand of uniform grain size into the void. This m3 - m1 - ^n # m2h
ensures that the density of the poured unconsolidated sand is
the same as determined in the calibration test and that results The core tray method provides a useful reality check
are accurate and repeatable. against the results from measuring subsamples and can be
The main sources of errors using this method are related to the used to check for subsampling bias. In cases where the core is
location of the sample and the condition of the sand. The method in very poor condition, the core tray method may be the only
is generally only suitable for sampling the upper portions of alternative to an informed guess.
a weathering proÀle and may easily be biased towards softer
materials. The sample may be affected by disturbance prior to Measurement of density from pulp samples
the test, eg compaction by mining equipment or changes in An alternative source of density data may, in some cases, be
moisture content (swelling or shrinkage). provided by rock pulp samples. The speciÀc gravity (SG) of

solids (solid density, grain density) can be determined using after crushing. In these circumstances, pycnometry data may
equipment such as a pycnometer, or gravity bottle. This is a form a useful part of the density database.
small glass bottle Àtted with a stopper through which there is Generally, for the estimation of Resources, methods using
a Àne opening. The general procedure is as follows: larger uncrushed samples offer more direct measurements
• The pulp sample (typically 10 - 20 g) is Àrst weighed (m1). of bulk density, can be more critically evaluated and are less
• The empty pycnometer is weighed and this mass is used expensive and more practical.
to tare the other measurements.
• The pycnometer is then Àlled with a stable liquid such as
xylene, which has good wetting properties, and weighed to
SEALING POROUS SAMPLES
determine the mass of xylene in the full pycnometer (m3). Several of the methods described above involve sealing the
• Some of the xylene is then removed from the pycnometer sample with parafÀn wax or beeswax. This approach can be
to make way for the sample. The sample is introduced useful if the samples are weak and likely to disintegrate in
into the pycnometer. Air entrapped within the pulp is water. The equipment required for waxing is simple and if
then removed under vacuum and the pycnometer is correctly applied, the wax completely seals the specimen. The
completely Àlled with xylene and weighed (m2). sample must be coated with a layer sufÀciently thick to seal
• The pycnometer is then emptied, dried, Àlled with the surface voids. It may be necessary to allow the Àrst coat of
deionised water and weighed (m4). wax to cool, then brush the surface of the cooled wax with a
second layer of wax to Àll in any pinpoint holes.
• The density of the xylene (ǒx) is then calculated as:
If wax is used, corrections for the volume or mass and
m density of the sealant are required. The density of wax and
t x = 3 # tw
m4 water varies slightly with temperature. At 25°C the density of
water is 0.997 t/m3; however, for the purpose of calculating
where: the density of geological samples, it is generally assumed to be
ǒw is the density of deionised water at 25°C 1.00 t/m3. In practice, the errors arising from this assumption
• The SG of the solids is then calculated as follows: are likely to be much smaller than other errors inherent in
bulk density measurement, and can be ignored.
m1
ts = # tx The disadvantages of applying wax are that it is time-
m4 + m3 - m2 consuming, particularly if the sample is very absorbent, and
the sample becomes contaminated with the wax and then
The pycnometer method can be a very accurate measure may be unsuitable for chemical analysis or metallurgical test
of solids density if the sample is properly de-aerated. It is work.
normally used to measure the speciÀc gravity of minerals or
gems. For Resource estimation, bulk density rather than solids The authors have also encountered hairspray and varnish
density is required. Comminution of the original rock sample being used as sealants. It is doubtful whether these coatings
destroys the fabric of the rock and makes direct measurement provide effective seals.
of bulk density impossible. However, for rocks that have very As a result of these problems, plastic food wrap has
low porosity and do not absorb liquids, it may be possible to sometimes been used to seal porous samples. The food wrap is
establish a consistent relationship between solids density and cheap, quickly applied and easily removed after use. However,
bulk density by measuring the density of samples before and it has the fundamental drawback that it is very difÀcult to
FIG 2 - Comparison of dry bulk density data showing effect of food wrap on buoyancy.

avoid trapping pockets of air inside the wrapped sample, mass of the sample before and after heating. Care must be
particularly where the wrap covers an irregular surface. taken not to heat the samples above this temperature range
This signiÀcant problem is illustrated by a data set of 366 because hydrous minerals, such as limonite and gypsum,
core samples from a base metal deposit. Dry bulk density progressively break down and release water of crystallisation.
was measured for each sample using the calliper method and This can also be measured and is reported as part of the Loss
an Archimedean method (water displacement method 5). on Ignition (LOI). The time required to dry the samples to the
Figure 2 presents the raw, unÀltered data. At the start of the point at which their mass stabilises should be conÀrmed by
program, the samples were not sealed; the correlation between experimentation.
the two sets of results was generally very good and there was Moisture content is reported as a percentage and is deÀned
no bias. From sample 10 344 onwards, the samples were sealed in one of two ways: either with respect to the dry mass of the
with food wrap, which signiÀcantly affected the buoyancy of sample or the wet mass of the sample. Hence, when receiving
the samples and resulted in a large underestimation of dry any moisture content data it is critical to know on what basis
bulk density by the Archimedean method. it was calculated as the conversion of wet bulk density (ǒw) to
dry bulk density (ǒd) is dependent on this.
The authors do not recommend using food wrap to seal
samples during bulk density measurements. If reporting moisture content (MC) with respect to dry mass
(as used in this paper), use this equation:
MOISTURE CONTENT mwet - mdry

MC = 100 #
The moisture content of rocks and soils and their behaviour mdry
during drying can be highly variable. Consequently, when
measuring bulk density it is important to choose a method and
appropriate to the condition of the samples and to manage the
moisture content of the samples from the point of collection. tw
Many fresh rock samples can be quickly and effectively td =
1 + MC
dried in the sun and, if their porosity is low, the dry bulk 100
density can be directly measured using the calliper method or
water immersion methods. By contrast, samples containing Or, if reporting moisture content with respect to the wet
sedimentary, supergene or hydrothermal clay minerals can mass of the sample:
present a challenge for measurement of density.
mwet - mdry
Clay-bearing samples may contain moisture that is slow MC = 100 #
to release by sun-drying or the samples may shrink or crack mwet
during drying leading to an underestimation of the volume
of the sample. Extreme examples of this are found in the and
limonite and transition zones of wet tropic nickel laterites
in Asia. Some of the highly leached limonite and saprolites t d = tw # 100 - MC
derived from ultramaÀc bedrock may have in situ moisture 100
contents of up to 65 per cent, with wet bulk densities as low
When calculating the dry bulk density from wet bulk
as 1.3 t/m3 and in situ dry bulk densities as low as 0.45 t m3.
density measurement, the moisture content must be obtained
In such cases, the process of drying will commonly result from the same sample. The use of average moisture content
in shrinkage of the samples. Consequently, methods that values from other samples should generally be unnecessary,
measure the bulk density and moisture content of wet or and avoided.
saturated samples should be chosen, from which the dry bulk
density can be derived.
In order to obtain reliable measures of in situ moisture DOWNHOLE GEOPHYSICAL DENSITY LOGGING
content, samples should be sealed in plastic bags as soon Geophysical logging of drill holes is widely practiced in some
as they are collected in the Àeld to prevent drying. Sealing sections of the Australian mineral industry, such as coal and
in plastic is also advisable for unsaturated samples if they iron ore, but in other commodities the industry has been slow
are prone to shrinkage or if they are hygroscopic and may to adopt this technology. Geophysical logging can provide
absorb moisture from the atmosphere. The possibility of large volumes of data on rock mass characteristics including
the artiÀcial addition of water to the samples located above bulk density.
the water table must also be considered. Drilling Áuids that A continuous down-hole density proÀle can be obtained
are normally used for core drilling and occasionally used using a geophysical logging probe (sonde). The sonde is
for percussion drilling may be absorbed by the samples typically a composite tool consisting of a focused (collimated)
even before they are delivered to the surface. Even if in situ gamma-gamma source and detector, a natural gamma
estimates of moisture content cannot be obtained, the detector and a calliper. The probe is winched up an open
moisture content of every sample at the time of the bulk (uncased) drill hole on the end of a wireline. The calliper
density measurement must still be known in order to derive arm is used to hold the source and detectors in contact with
the dry bulk density. the hole wall. The density log readings are therefore only
Moisture content is determined in the laboratory by heating collected from one sector of the drill hole wall.
the sample in an oven to around 105 - 110°C for several hours. A radioactive source of gamma radiation (eg Caesium-137
This releases the free water from the interstitial pore spaces or Cobalt-60) is located at the base of the sonde. Gamma rays
and the moisture content is calculated from the difference in emitted by the source pass through the hole wall and are

measured by one or two detectors further up the sonde. The scale measurements of ISBD may be obtained. A bulk sample
quantity of gamma rays reaching the detector is reduced by may be collected by:
interaction with the rock, primarily by a mechanism known • mining regular benches with an excavator, shovel or
as Compton scattering in which the gamma rays are deÁected loader
by interaction with the electrons in the rock. The attenuation • sinking a shaft or excavating an adit
of gamma rays between the source and the detector is a
• drilling a large diameter drill hole.
function of the ISBD of the rock. The gamma radiation is
The in situ volume of the bulk sample can be estimated by
recorded in counts/second by the detector typically at
surveying the excavated void or, in the case of large diameter
10 cm down hole intervals. The output is sometimes known
drilling, by calculation from the nominal drill hole diameter
as a gamma-gamma log to differentiate it from the natural
and hole length. The mass of the excavated bulk sample may
gamma log that records natural gamma ray emissions from
be directly measured using payload measurement systems
the hole wall. Density logging tools usually incorporate both
on the dump trucks that are used to transport the bulk sample
long-spaced and short-spaced detectors. The short-spaced
in conjunction with a weighbridge, which may be hired and
detector provides a higher count rate (and thus more precise
relocated to the bulk test site.
measurements), but is more affected by hole conditions than
the long spaced detector. Density measurements can be Drying the entire sampled mass is impractical; therefore,
improved by combining the readings from the two detectors the moisture content of the bulk sample must be estimated
to produce a compensated-density log. by taking the average of small subsamples. The subsampling
program needs to be carefully planned and executed. If there
Correct calibration of density tools is critical. Typically, the is any bias in the selection of samples for moisture content
tool is calibrated by running it in a calibration jig with known measurement, this will Áow through to an error in the
properties or in drill holes for which density measurements estimation of the dry bulk density of the entire bulk sample.
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 STOICHIOMETRIC METHODS – ESTIMATION OF
with steel shot can be used. Calibration may be carried out
off-site, in which case a local reference drill hole should
BULK DENSITY FROM SAMPLE CHEMISTRY
be established. The tool must be regularly checked and In mineral deposits that have relatively simple mineral
recalibrated against the reference drill hole. Samworth (1992) assemblages and low porosity, such as many base metal
presents a detailed discussion of this issue. deposits, strong correlations are commonly observed between
bulk density and the assays. This is expected, since the ore
The calliper arm produces a log of the diameter of the minerals are often of much higher density than the gangue
drill hole and is essential for quality control. The calliper minerals in the host rock. The correlations may be sufÀciently
log is used in computing the density and is also useful for strong to permit the bulk density of samples or rock units to
identifying cavities, caving of the drill hole wall and irregular be estimated directly from assay values.
rough drill hole wall conditions. In these instances, the sonde
Formulae for estimating bulk density are commonly
may lose contact with the wall and the density values will
calculated using linear regression (single assay variable) or
be incorrect. The calliper log must therefore be used to Àlter
multiple linear regression. For example, bulk density has
unreliable data from the density log.
been estimated for the McArthur River base metal deposit
The density log is effective above and below the water using lead, zinc and iron grades (Pevely, 2001). However,
table. Calibration of the tool will vary, depending on whether where there is sufÀcient data, it is often observed that
the hole is above or below the water table. Air, water and the relationship between density and grade is non-linear
mud in the drill hole cause varying degrees of attenuation (Bevan, 1994). Assays and other chemical analyses are
of the gamma rays so calibration must take into account the usually expressed on a weight percentage basis but density
moisture content of the rock and also the nature of the Áuid in is expressed in terms of volume and hence, the relationship
the hole. Below the water table the density log measures the between grade and density is a curve. A simple example
saturated (wet) bulk density of the rock. A neutron-logging demonstrates this. Suppose a sample has a grade of 50 per
sonde may also be used in the hole to measure porosity and cent copper occurring as the native metal and the remainder
moisture content. of the sample is quartz. Since the density of copper is 8.9 t/m3
Down-hole density logging is particularly useful in cases and the density of quartz is 2.7 t/m3, the copper forms:
where bulk density is highly variable (eg iron ore deposits,
massive sulÀde deposits) and it provides a cost-effective 50
technique for obtaining large amounts of data. In order to 8.9 = 23% of the sample, by volume
50 50
obtain reliable quantitative results for Resource estimation, it ` 8.9 + 2.7 j
is important that planning for the geophysical logging is fully
integrated with the drilling program so that moisture content Rather than a mass-weighted average of 5.8 t/m3, the
data can be gathered, optimum drill hole conditions can be density of the sample is therefore:
achieved and adequate arrangements for data calibration can
be established. ^23.3 # 8.9h + ^^100 - 23.3h # 2.7 h 3
= 4.14 t/m
100
LARGE-SCALE METHODS Estimation of bulk density by regression from assay data
For projects that are already in the production stage, or for may be satisfactory in deposits in which there are only one
which trial mining or bulk sample extraction is possible, large or two dense mineral species. Where the assemblage of dense

minerals is more complex and individual elements occur in • independent audit of processes
more than one mineral, partitioning of assay grades between • such audits are required for Resource evaluation
mineral species is necessary. This may be problematic; under NI43-101 or JORC (Table 1).
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 AUDIT LIST
of normative minerals. The proportions of the normative Auditing of a density measurement program should be
minerals in a sample converted to a percentage volume basis undertaken regularly by both internal and external parties.
can then be used to estimate the bulk density of the sample. The audits should consider:
Lipton, Shaw and Waltho (1999) presented an example
• sample or site selection bias
of how this method was successfully used for the Century
• sample description and categorisation
zinc-lead-silver deposit. At Century, Zn, Pb, Fe, Mn and S
grades were used to estimate the proportions of sphalerite, • calibration and use of scales
galena, pyrite, siderite, smithsonite and cerussite and hence, • appropriateness of the density methods
the bulk density of the samples. Comparison of these results • application of the described processes
with the results of physical measurements on core samples • record keeping and calculations
and geophysical (density) logging showed that the normative • evidence of QA/QC
mineral method produced very accurate estimates of bulk
• evaluation of QA/QC and check data.
density in this deposit.
Experience indicates that common problems for density
If estimation of bulk density from assay data is feasible, it determination on Mineral Resource projects include:
enables use of a very large data set with coverage across the
entire mineral deposit. It is imperative that these estimates • no calibration of scales
are appropriately calibrated using good quality physical • no record of calibration
measurements that are representative of the full range of • scales not level nor in a constant temperature environment
grades and ore types that are present. • no process to ensure representative sampling
• inappropriate methods applied for soft, porous or broken
samples
QUALITY ASSURANCE / QUALITY CONTROL
• no moisture content data available to correct density to a
Density measurements and their application to Resource
dry basis
estimation should be supported by a QA/QC system and
be fully documented. Such practices are now commonplace • moisture content measured for different samples to those
for geochemical sampling and analysis but less commonly used for the density measurement
applied to density studies. QA/QC processes should be • calculation errors
implemented at each step and should include: • no alternative data or check method to support the
• process design primary method
• detailed documentation of sampling and measurement • lack of description of the samples
procedures, as would be expected for geochemical • no validation of wax density over time and different
data batches of wax
• testing of methods prior to implementation of the • use of hairspray that is ineffective in sealing the samples
system during immersion
• regular calibration and validation • use of food wrap to seal samples that results in bubbles
• daily checks on scales and balances using standard that bias the results
samples of known weight (ie calibration standards) • inadequate calibration or veriÀcation of geophysical
• daily calibration of geophysical tools, the sand used in methods
the sand replacement method, etc • no correction for water absorption
• repeated measurements at the end of the day or round • no correction or allowance for cavities or porosity
• if a water displacement method is the primary method, • insufÀcient samples.
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 DISCUSSION
measurements; this assists with the identiÀcation of There is a broad range of methods available for the
spurious data measurement of bulk density. Whilst guidelines may be
• duplicate measurements provided for matching appropriate methods to sample or
• duplicate measurements in the Àeld by a second material type, a prescriptive approach to method selection is
method to validate the result of the primary method (ie not possible. The choice of methods for a particular deposit
internal check samples); if possible, the second method or project will depend on the physical characteristics of the
should be chosen to test the recognised weaknesses in ore, the type of samples that are available or may reasonably
the regular method, for example, a method that has be collected, the equipment that is available and the stage
the risk of subsampling bias should be checked with a of development of the project. The guiding premise should
method that measures a larger volume of sample be that determination of the bulk density of the deposit is as
• duplicate measurements made by commercial important a part of the evaluation program as determination
laboratories (ie external check samples) of the volume or the grade of mineralisation.

Competent materials are easily assessed by core drilling, on the deÀnition of margins of the ore. By contrast, errors in
with determination of bulk density by the calliper method the estimation of bulk density may occur across the entire
or by any of the water displacement methods. The calliper mineralised zone, thus affecting not only the total Resource or
method can be sensitive to errors in the estimation of Reserve estimate, but also the mine schedule and incremental
average core diameter and is therefore more suited to high mine design.
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 CONCLUSION
scales will determine whether it is more practical to weigh
The importance of dry bulk density in the estimation of
the water vessel on the pan of the scales (water displacement
Mineral Resources should not be overlooked. A wide variety
method 6) or to weigh the sample suspended in water
of methods for measuring the density of rocks is available, each
beneath the scales (water displacement method 3). Water
displacement methods are useful in situations where no drill with its own practical limitations. Selection of an appropriate
core is available. Hand specimens may be collected from method depends on the size and physical characteristics
surface outcrop, pits or shafts and measured; however, there of the available samples. QA/QC principles and methods
is always the risk of a biased sample selection. commonly used for geochemical analysis should also be
applied to density determination and estimation. Repeat and
Porous rocks or materials with high moisture content are
duplicate measurements, sample checks and independent
potentially more difÀcult to measure if only small samples
are available. Water displacement methods involving waxing audits are all important tools for improving the reliability of
can be effective if the wax forms a good seal over the whole density estimates, as well as meeting regulatory requirements
of the sample. Waxing may also assist with handling of some and investor expectations.
weak or crumbly specimens. Determining the bulk density of As with other aspects of Resource and Reserve estimation,
materials with large voids or vughs is particularly difÀcult, the collection of bulk density data and the extrapolation of
and measuring small samples may be inadequate. In these that data across the whole deposit must be controlled by a
cases, the core tray method, geophysical logging or bulk sound knowledge of the geology of the deposit.
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, ACKNOWLEDGEMENTS
step-by-step procedure, careful recording of all weights and The authors would like to thank the many mining industry
measures and supervision by technical personnel. Geological professionals who contributed their experience and
materials are rarely uniform, so careful observation is required knowledge to this paper and the reviewers for their helpful
to ensure that the methods employed are appropriate for all comments.
the samples being measured. The use of at least two different
methods is recommended to demonstrate that consistent
results can be obtained. REFERENCES
Large-scale methods of determining bulk density are American Society for Testing of Materials, 1979. ASTM D167-73
good at minimising errors due to small-scale variability, but Determination of the speciÀc gravity of lump coke samples.
they are often difÀcult to implement until the latter stages American Society for Testing of Materials, 2011. ASTM D6752/
of a project due to cost and environmental constraints. D6752M – 11 Standard test method for bulk speciÀc gravity and
Accurate recording of material movements and calibration of density of compacted bituminous mixtures using automatic
weighing equipment are important. If the moisture content vacuum sealing method.
of the material being mined is high, a systematic program of
Anon, n/d. Area of a circular segment – circular segment area
subsampling will be required to determine the correct dry
calculator [online]. Available from: <http://www.had2know.
weight of the mined material.
com/academics/area-circular-segment-formula.html>
For many advanced projects, down hole geophysical [Accessed: 15 April 2013].
logging is the preferred method of measuring bulk density.
Bevan, P A, 1994. The weighting of assays and the importance of both
If properly calibrated, the method produces reliable results
grade and speciÀc gravity, CIM Bulletin, 86(97):88-90.
for a wide range of material types and is quick and cost
effective. Logging produces a continuous proÀle of bulk Dadson, A S, 1968. Ore estimates and speciÀc gravity, in Ore Reserve
density in each drill hole and delivers the data in digital Estimation and Grade Control, special volume 9 (The Canadian
format. In addition, bulk density data is easily acquired Institute of Mining, Metallurgy and Petroleum: Montreal).
simultaneously with the natural gamma radiation logs Lipton, I T, 1997. A review of density determination methods for
that are commonly used for stratigraphic correlation in iron ore deposit evaluation, in Proceedings Iron-making Resources
Australian iron ore provinces. The main practical problem and Reserves Estimation, pp 57-66 (The Australasian Institute of
is the potential instability of the drill hole walls and the risk Mining and Metallurgy: Melbourne).
of losing a probe down a hole. Loss of a density logging tool Lipton, I T, 2000. Modelling bulk density – the importance of
down a hole is a Ànancial cost to the project and also creates getting it right, in Proceedings Fourth International Mining Geology
an environmental hazard that may require permanent Conference, pp 291-297 (The Australasian Institute of Mining and
sterilisation of the surrounding rock mass. Metallurgy: Melbourne).
Bulk density within mineral deposits is commonly a highly Lipton, I T, 2001. Measurement of bulk density for resource
variable parameter. Poor estimates of bulk density result in estimation, in Mineral Resource and Ore Reserve Estimation – The
poor estimates of tonnage. Errors in the interpretation of the AusIMM Guide to Good Practice (ed: A C Edwards), pp 57-66 (The
geology of mineral deposits typically have the most impact Australasian Institute of Mining and Metallurgy: Melbourne).

Lipton, I T, Shaw, W J and Waltho, A E, 1999. Characterisation of ore Standards Australia, 2004. AS 1289.5.3.1-2004 Methods for testing of
types and beneÀciation behaviour using normative minerals, in soils for engineering purposes. Method 5.3.1: Soil compaction
Proceedings PACRIM 99, pp 427-434 (The Australasian Institute of and density tests – determination of the Àeld density of a soil –
Mining and Metallurgy: Melbourne). sand replacement method using a sand-cone pouring apparatus.
Morris, R C, 1980. A textural and mineralogical study of the Standards Australia, 2005a. AS 2891.9.1-2005 Methods of sampling
relationship of iron ore to banded iron formation in the and testing asphalt – determination of bulk density of compacted
Hamersley iron province of Western Australia, Economic asphalt – waxing procedure.
Geology, 75:184-209.
Standards Australia, 2005b. AS 2891.9.2-2005 Methods of sampling
Pevely, S, 2001. Ore Reserve, grade control and mine/mill and testing asphalt – determination of bulk density of compacted
reconciliation practices at McArthur River Mine, NT, in Mineral asphalt – presaturation method.
Standards Australia, 2005c. AS 2891.9.3-2005 Methods of sampling
Practice (ed: A C Edwards), pp 567-578 (The Australasian Institute
and testing asphalt – determination of bulk density of compacted
of Mining and Metallurgy: Melbourne).
asphalt – mensuration method.
Preston, K B and Sanders, R H, 1993. Estimating the in situ relative
Standards Australia, 2005d. AS 4133.2.1.2-2005. Australian Standard
density of coal, Australian Coal Geology, 9:22-26
– Methods of testing rocks for engineering purposes, Method
Read, H H, 1970. Rutley’s Elements of Mineralogy, 26th edition (Thomas 2.1.2: Rock porosity and density tests – determination of rock
Murby & Co: London). porosity and dry density – saturation and buoyancy techniques.
Samworth, J R, 1992. The dual-spaced density log – characteristics,
calibration and compensation, The Log Analyst, 33(1).

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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: andre.vanas@riotinto.com
INTRODUCTION
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FIG 10 - Joint roughness as categorised by Barton’s tunnelling quality index (Q) and Laubscher’s 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 type/inÀll type and quality – zones of broken
structure logging and should be prepared separately by the core caused by drilling difÀculties or the intersection
geologist. of sets of joints are not included as major structures.
Identifying the type of major structure can be difÀcult
Major structure logging parameters – in most cases impossible – because of the scale of
The following Àelds are recorded to describe the type and the structure and limited exposure in the core. Hence,
characteristics of these structures. Not all of these parameters logging of major structure type tends to focus more on
are essential for geotechnical analyses pertaining to some the character and quality of the structure than its actual
mining methods, so those required for all methods are type. As a result of this dilemma, different approaches to
italicised: identify and characterise major structures are found in the
literature. The two most common are:
• Depth – the depth is the midpoint of the upper boundary
of the structure. 1. structure type shear zone:
• Length of defect (also referred to as ‘intercept length’) – the • crushed zone
apparent thickness of the defect is measured in milli- • altered zone
metres parallel to the axis of the core. • clay bands

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FIG 12 - Estimation of rock mass strength using the Hoek and Brown failure criterion derived for jointed rock masses (Hoek and Brown, 1980).

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FIG 14 - Application of rock mass classification systems in rock mechanics and rock engineering (after Cai et al, 2003).
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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 ZLUHOLQHLQVLGHWKHGULOOURGVDIWHUWKHLQQHUWXEHLVUHPRYHG

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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.

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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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line
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mark was allegedly made by a spear but is more likely to have been fabricated. DOWKRXJKLWLVE\QRPHDQVH[KDXVWLYH
LVDOLWWOHWRRSHUIHFW1HHGOHVVWRVD\DODUPEHOOVVKRXOGULQJ 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 alpha-
beta strips typically measure alpha (apparent dip) and beta
(apparent dip-direction) values relative to a bottom-of-core
line, not top-of-core. FIG 8 - Core laid out in a piece of angle iron to the left of the trays from which it
The situation of orientation lines on the top of the core
was taken. The oriented marks are then lined up and the edge of the angle iron
may seem uncommon but the author has seen this on several
used as a guide to draw the orientation line.
occasions.
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 GoldÀelds 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 Àrst
seven holes. Clearly, this is an inappropriate practice.
The marking-up process brieÁy described below follows
industry convention and pertains to bottom-of-core
orientation marks and lines.
Marking the orientation line FIG 9 - Core laid out on a sheet of iron with angular corrugations. The
The orientation line should represent the result of joining up orientation marks are aligned on the top side of the core (still bottom-of-hole
conÀdently made orientation marks. Since each orientation but the core is rotated around). A piece of iron is then rubbed against the core
mark has an unknown accuracy, it can only be accepted if it and produces a non-temporary line on pieces of adjacent core. This line can
correlates with at least one but preferably two or more of the then be checked against the marks for consistency and over-written in ink if
other adjacent orientation marks; that is, a straight line must the marks are of good quality.
connect the orientation marks when a coherent core between
the marks is conÀdently reassembled. The procedure for marking orientation lines should
To make an orientation line, the core should be reconstructed incorporate the following:
between the orientation marks. The best method for this is to • Placing a small pencil mark on the side of the core where
use a continuous length of angle iron that can accommodate the interpreted bottom of the hole is. This is done by

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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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FIG 13 - An example of a dislocated orientation line that is hard to explain.
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been drawn from two different directions and did not match. In both cases the
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orientation lines are of no confidence.
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FIG 15 - ‘Oriented’ core showing a red downhole spear orientation mark on the YLVXDOO\DVVHVVWKHVWUXFWXUDOUHODWLRQVKLSV,W·VDPD]LQJZKHQ
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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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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 155
C Harman
The Do’s and Don’ts 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 R Gradim, J Donaldson, J Levett, 229
Modelling, Gold Fields – Growth and International Projects M Briggs, M Crawford, M Dusci and
A Trueman
Wireframe-Free Geological Modelling – An Oxymoron or a Value Proposition? E J Cowan, K J Spragg and 247
M R Everitt
HOME
Overview – Geological Interpretation

and Geological Modelling
E J Cowan1,2
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2. Adjunct Senior Research Fellow, School of Geosciences, Monash University, Clayton Vic 3800.
INTRODUCTION
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1. Retired. Email: john.duke@westnet.com.au

2. FAusIMM, Principal Consultant, Hanna Consulting Services, 73 Coogee Bay Road, Randwick NSW 2031. Email: phanna2@gmail.com
INTRODUCTION
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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.
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FIG 5 - Variogram of assay values along strike in a base metal deposit

FIG 4 - Assay histogram plots (A) before domain interpretation (coefficient showing a range of approximately 270 m.
of variation 1.9); and (B) after domain interpretation (coefficient of
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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 tBorehole typically 50 - 100 m tBoreholes typically 50 - 100 m apart
tBoreholes typically 400 - 500 m apart tDifficulty obtaining reliable samples tLong mineralised intercepts of low-grade values
tOften every section hold open tLow average concentration and high variance of
tGeophysics in every hole Au and Ag
tSkewed distribution of assay values
Spatial continuity/ tGood continuity along seams – thickness tModerate continuity of mineralisation down dip tQuite good continuity of mineralisation,
variography typically 800 - 1200 m variogram range and along strike particularly vertically
Domaining tSharp roof and floor boundaries – except for tOften sharp definition of overly vein structure tOften diffuse definition of concentric domains
plies/splits although internally there may be complex based on grade cut-off and geology
tFloors, roofs and thickness models are gridded intermingling of ore and waste tBarren intrusives and zones of sheeted veins
from boreholes intercepts tVein outlines, vein splitting, faulting
tUsually flat lying to 10 degree dips – may be
faulted
tUsually higher-ranking coals (anthracite) are
folded to any extent (eg in the Rockies)
Interpretation tFault definition – often inferred by magnetics, tCharacterising grade distribution tDefining concentric grade zones
focus photo-interpretation, etc tIdentifying isolated extreme values tIdentifying higher-grade concentrations in
tWashouts tStudy of grade distribution along folds and across concentric zones
tWeathering profile faults tCharacterising grade distribution in sheeted veins
tIntrusives
Grade estimation tCoal quality variables, ash, moisture and sulfur tHandling extreme values tDefining concentric grade zones
requirements tGrade estimation along folds and across faults tIdentifying higher-grade concentrations in
concentric zones
tCharacterising grade distribution in sheeted veins
Grade estimation tCoal quality variables, ash, moisture and sulfur tHandling extreme values tTop cut on Au, soften grade domains with 10 m
requirements tGrade estimation along folds and across faults 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, tLow-grade economics highly susceptible to metal
geotech, extent of faulting price fluctuations
Environmental tSulfur, spoilt to ore ratios, dewatering, tTrace elements and treatment wastes as possible tLarge-scale mining – size of waste dumps and
factors rehabilitation contaminants possible water problems
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1. FAusIMM, Chief Geologist Energy and Minerals – Exploration, Rio Tinto, 123 Albert Street, Brisbane Qld 4000. Email: andrew.waltho@riotinto.com
2. MAusIMM, Principal Geologist Coal – Exploration, Rio Tinto, 1 Research Avenue, Bundoora Vic 3083. Email: steen.kristensen@riotinto.com
3. MAusIMM, Senior Project Geologist Coal – Exploration, Rio Tinto, 123 Albert Street, Brisbane Qld 4000. Email: christopher.harman@riotinto.com
INTRODUCTION
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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).

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 Inclination (from horizontal)
Subhorizontal 0 - 5°
Gently inclined 6 - 15°
Moderately inclined 16 - 30°
Steeply inclined 31 - 60°
FIG 3 - Example of a reference card that may be used to Very steeply inclined 61 - 80°
assist with grain size estimation while logging.
Subvertical 81 - 90°
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FIG 4 - Planar bedded laminate (30 per cent fine sand) from the FIG 5 - Laminite (50 per cent sand) exhibiting wavy bedding,
Western coalfield of the Sydney Basin (Ward et al, 1986). 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 I UW Rock mass shows no loss of strength, discolouration or other effects due to weathering. There may be slight
(fresh rock) 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 V 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).

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 Unconfined uniaxial Point load strength
compressive strength qu (MPa) IS(50) (MPa)
Extremely strong Can only be chipped with geological hammer. >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 20 - 50 1-2
geological hammer.
Weak Can be peeled by a pocket knife with difficulty. Shallow indentations made by firm blow 5 - 20
with point of geological hammer.
Very weak Crumbles under firm blows with point of geological hammer. Can be peeled by a pocket knife. 1-5 <1
Extremely weak (soil Indented by thumb nail or other lesser strength terms used for soils. <1
description required)
Note: no correlation is implied between qu and IS(50).
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TABLE 4 WREHFKHFNHGDQGDGMXVWHGUHJXODUO\DQGDOOFDOLEUDWLRQGDWD
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FIG 10 - Determination of dip and dip direction from dipmeter logs (Firth, 2000).
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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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The Do’s and Don’ts of Geological and

Grade Boundary Models and What You
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J F H Barnes1 and B L Gossage2
ABSTRACT
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1. FAusIMM, Consultant, Apartment 8, Building 7, Strada Unirii, Selimbar, Judetal Sibiu 557260, Romania. Email: julian.barnes@iinet.net.au
2. MAusIMM, Consultant, Perth, Western Australia. Email: brett.gossage@ozemail.com.au
INTRODUCTION
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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).

The Do’s and Don’ts 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
Do’s and don’ts of organising your data.
Do Don’t
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 Make the mistake of preferentially sampling because it is believed that the
throughout its length – there is no argument for not collecting a sample for a $20 assay mineralisation is visual. Not committing to the final $20 to get assay data is not a cost
when it has cost you $250 to get the metre of material into the tray. saving – it is a potentially critical error.
Ensure you have an interpreted lithology field and keep the original observations Ignore anomalous observations, for example extreme changes in lithological thickness
separate. 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 Mix foliation/fabric measurements with joints.
(do the orientations match outcrop observations?).
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 Mix up bulk density with specific gravity (if your rock sequence has any porosity you
possible – at least one every 3 m in core. need to measure bulk density not specific gravity).
Assess your data at a scale relevant to the resource requirements (don’t 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 Be tempted to put a fault between and parallel to two drill hole traces because the
possible and continue to test the hypotheses. 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.

FIG 2 - A typical summary drill hole log.

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TABLE 2
Do’s and don’ts of data review.
Do Don’t
Produce reference drill sections at an appropriate scale – you may need several sheets to Assume that the drill section orientation is normal to the principal orientation of
display all the relevant data. 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 Try to immediately review the un-grouped data as you will probably suffer from
subdividing. ‘information overload’.
Use colour and indicator assignment techniques to remove visual distractions – do this Fall victim to directional bias based on interpreting normal to the drill hole direction.
for each relevant set of data.
Demonstrate appropriate levels of continuity, particularly with grade data (the chances Try to interpret mineralisation boundaries at elevated cut-off grades (ie the potentially
are that the ‘mineralisation indicator grade’ will be significantly lower than the economic economic cut-off grade) unless you can demonstrate continuity in 3D.
cut-off grade).
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, don’t 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 Be tempted to put a fault between and parallel to two drill hole traces because the
continue to test the hypotheses. 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 8 - Examples of boundary analyses: (A) example of a discontinuous

grade distribution across a geological boundary; (B) example of a
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Sensitivity of mineralised zone boundary definition to FIG 9 - Example where zone topology changes with cut-off grade: (A) grade
control drilling array; (B) combined implicit modelling grade shells;
cut-off grade (C) 0.5 grade shell; (D) 1.0 grade shell; (E) 2.0 grade shell; (F) 5.0 grade shell.
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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
Do’s and don’ts of building a geological and/or mineralisation model.
Do Don’t
At all times think about the deposit and the geology in 3D. 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.
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 Don’t interpret the grade data in isolation from the geology and alteration.
role in the final 3D arrangement of the deposit.
Consider the best way to produce a realistic 3D model – it may be the opposite to what Don’t 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 Assume that weathering profiles are simple and do not repeat.
repeats or inversions.
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 Be tempted to use faults every time the current geological/mineralisation model starts
through the drill logs to look for evidence of them. If the faults are missing to break down and especially not parallel to and between drill traces.
all the drilling then they probably do not exist.
As geological units are modelled in 3D, use indicator coded assay data to check the 3D Assume grade continuity (in a geological model) unless you can demonstrate it in 3D.
relationship between the units and the grade data – are they parallel or cross-cutting? 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
Do’s and don’ts of testing the geological model.
Do Don’t
Interrogate and slice the model in multiple orientations – as a minimum, the three Assume that if the model looks good on the drill section it will be ok in other directions
principal orthogonal directions; for example, parallel to the drill hole section, normal to – go and check.
the first sectional orientation (long-section) and in plan.
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 Ignore wireframe volume ‘errors’ unless the model is just to be used as a visual aid.
model.
Check that the data is honoured by the geological model, particularly if it has been Assume that outlines that have been manually digitised will honour data that is located
developed by manual methods, including the interpretation being ‘snapped’ to drilling. ‘off-section’.
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TABLE 5
Do’s and don’ts of testing the mineralisation model.
Do Don’t
Check the mineralised zone interpretation in multiple orientation displayed with the 3D Assess the mineralisation model purely using grade or indicator data – remember that it
geological model. is part of a 3D deposit model.
If possible, superimpose several different approaches to see which is most robust from a Choose the first approach that appears to fit the data – test alternatives.
geological perspective as well as with the source grade data.
Check the preferred interpretation in 3D and by ‘slicing’ with both grade and indicator Forget that the data is part of a 3D deposit and the drill information may be ‘off-section’
data. 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 Assume in a polymetallic deposit that all variables of interest are perfectly correlated
has been applied and a single mineralisation constraint has been constructed. and review the constructed mineralisation model against only the calculated grade
equivalent variable.

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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1. Independent Geological Consultant.

2. Senior Consultant – Geology, Xstract Group, Level 11, 140 St Georges Terrace, Perth WA 6000. Email: agrieve@xstractgroup.com
3. FAusIMM(CP), Director, Dale Sims Consulting Pty Ltd, 36 Bayswater Road, Bolwarra NSW 2320. Email: dalesims@tpg.com.au
PREAMBLE (by Dale Sims)

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PLQH²*RVRZRQJ,QGRQHVLDLQProceedings Seventh International 0HOERXUQH
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1. Consulting Geochemist, Mineral Mapping Pty Ltd, 24 Webb Street, Rossmoyne WA 6148. Email: minmap@westnet.com.au
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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 Figure 1.

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 Çöpler 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 Çöpler deposit.
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FIG 6 - Çöpler long-section with copper assays: blue = Cu < 100 ppm, red = Cu > 1500 ppm.
FIG 7 - Çöpler 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
Cu assays less than 0.1 per cent. The colour scheme shows the sulfide mineralogy predicted from this ternary plot.
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
in Figure 9 were plotted in 3D and a volume was created to enclose the bornite-bearing assay intervals.
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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3. This paper focuses on grade data. Additional data such as logged lithological data are DUH SDLQWHG RQ VSRUWLQJ ÀHOGV GLVWRUWHG EXW DSSHDU WR VLW
used in the analysis where available; however, analytical data – especially assays – are XSULJKW XQGLVWRUWHG ZKHQ YLHZHG ¶GRZQSOXQJH· WKURXJK
the only geological data available at all exploration and mine sites. These analytical data WHOHYLVLRQFDPHUDV)LJXUHD&RQWLQXLQJLQWKHIRRWVWHSV
sets are much more reliable than subjectively obtained logged data. RIWKH5HQDLVVDQFHSDLQWHUVPRGHUQDUWLVWVFRQWLQXHWRXVH

‘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) down-
plunge 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 Younger’s 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). Varini’s 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 UHODWLYH WR VRPH JHRORJLFDO IHDWXUH VHHQ LQ WKH PLQHUDOLVHG
ore deposits. A search comprising ‘down-plunge projection’ with the word ‘ore’ using the SDWWHUQIRUWKLVPHWKRGWRZRUN7KHGLUHFWLRQLQZKLFKZH
online Monash University library resulted in no journal publications on ore deposits that VKRXOG EH YLHZLQJ LV GLVFXVVHG LQ WKH FRQWH[W RI VWUXFWXUDO
have used this method for the analysis of mineralisation geometry. V\PPHWU\

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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 7 - Grade control data from a plunging anticlinal fold hinge with an average plunge of 28°. All images of grade interval mid-points are shown with maximum
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 100 m and views are at or near entire deposit scale.

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Practical Implicit Dyke Modelling

for Resource Estimation – Newmont
Boddington Gold, Western Australia
D J Haddow1 and E J Cowan2,3
ABSTRACT
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1. MAusIMM, Resource Development Geologist, Department of Resource Development, Newmont Boddington Gold, PO Box 48, Boddington WA 6390. Email: david.haddow@newmont.com
INTRODUCTION
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FIG 1 - Location map showing the position of Newmont Boddington Gold in Western Australia.
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gold deposit. The drill hole traces have been removed for clarity. The outlined (IIHFWLYHO\ WKHUH DUH WZR ZD\V WR PRGHO JHRORJLFDO
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FIG 5 - Barren Proterozoic dykes (green) that cross-cut mineralised Achaean lithological units (various colours) are modelled using
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FIG 7 - Intercepts selected along a trend in the dolerite data and the hanging wall point values. Point values: actual hanging wall contact points in green,
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FIG 8 - Modelled dolerite dyke (scale in metres).
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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: rafael.gradim@gfexpl.com
2. MAusIMM, Principal Resource Geologist, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: john.donaldson@gfexpl.com
3. MAusIMM(CP), Senior Resource Geologist, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: jane.levett@gfexpl.com
4. Geology and Mining Manager: Greater Damang Study, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: matt.briggs@gfexpl.com
5. MAusIMM, Senior Geologist, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: matt.crawford@gfexpl.com
6. Vice President, Concept and Studies, Gold Fields Australasia Pty Ltd, PO Box 996, West Perth WA 6872. Email: matt.dusci@gfexpl.com
7. MAusIMM(CP), Chief Resource Geologist, Gold Fields Exploration Inc, Suite 1650, 6400 South Fiddlers Green Circle, Greenwood Village Co 80111-4926, USA. Email: alex.trueman@gfexpl.com
INTRODUCTION
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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
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FIG 5 - Bedding measurements taken from outcrop are added to subsurface measurements taken with televiewer, translated to a 3D environment
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 litho- FURVVFXWWLQJ UHODWLRQVKLSV RU VSHFLÀF LQFOXVLRQ FULWHULD
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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.
C 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
the mouse cursor using manually interpreted geological cross-sections as
reference; (B) software generates a hanging wall (HW) and a footwall (FW)
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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THE DAMANG CASE STUDY

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DWJW$XIRUNR]RIFRQWDLQHGJROG 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, VWUXFWXUHV
in south-western Ghana. 7KH 'DPDQJ 'HSRVLW LV GLYLGHG LQWR WKUHH DUHDV +XQL WR
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FIG 13 - Geological interpretation plan at 800 mRL (AGL grid).
and 14). Little information exists to deÀne stratigraphic stratigraphy offset by faulting. Only minor (<1 m) late offset
contacts west of the Damang Fault, which are interpreted to of mineralisation is observed across the faults.
dip steeply to moderately west. Gold mineralisation at Damang is hosted in all rock
Two fold closures are interpreted. The Àrst is between types and is dominated by hydrothermal quartz vein
the north end of Damang and the south end of Huni where mineralisation (~95 per cent of the metal); palaeoplacer
there is thickening of the Tarkwa Phyllite and repetition of mineralisation comprises the remainder. Lateritic and
stratigraphy as a result of faulting. The second and most supergene mineralisation has mostly been mined out.
evident is at the north end of the Huni area. The Banket formation, in particular the Banket Footwall,
MaÀc Intrusives are most extensive in the southern Juno hosts ~50 per cent of the metal; it is a thick and competent
area where they reduce the footprint of the Banket formation, rock unit that behaved in a brittle fashion with respect to
the most favourable host rock, and can be greater than 100 m the rock units surrounding it during mineralisation. In
wide. Volumes of MaÀc Intrusive decrease signiÀcantly addition, the presence of magnetite may have created a
in the northern Huni area where they occur on or near the reduced geochemical contrast that further focused gold
Tarkwa Phyllite contacts and are only 5 - 10 m wide. This mineralisation. The Tarkwa Phyllite hosts the highest grade
observation is correlated with the strength of hydrothermal mineralisation, a result of its reduced geochemical nature.
mineralisation throughout the deposit. The lowest grade mineralisation is hosted in the Huni
The north-south striking Damang Fault marks the western Sandstone where tenor, thickness and frequency of veining
boundary of mineralisation and to the east of this fault, are generally lower.
the deposit is cut by east-west, north-west-south-east and Hydrothermal gold mineralisation is associated with four
north-east-south-west trending faults. Interpretation of these main mineralisation styles, listed in order of dominance:
faults is based on mapping, distribution of lithology and 1. stacked arrays of shallow to Áat lying sigmoidal
mineralisation. A total of nine faults have been identiÀed quartz veins forming moderately south-west-dipping
(Figures 15 and 16). mineralised trends (Figure 17)
The faults are interpreted to be post folding as they are not 2. more widely-spaced shear (fault Àll) veins with Áat
folded themselves and to have been active both prior and lying dilational veins forming moderately east-dipping
synchronous to mineralisation as mineralised veins cross-cut mineralised trends

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 south-
west 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.
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FIG 14 - Geological interpretation cross-sections for (A) Huni (26 920 mN), ÁDW O\LQJ TXDUW] YHLQV IRUPLQJ JHQWO\ VRXWKGLSSLQJ
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FIG 18 - Long-sections of the interpretation of deposit scale mineralisation trends. (A) Intersections of lithology and faults,
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TABLE 1
Summary table of the domaining used in the estimation.
Area and lithology Palaeoplacer Hydrothermal – primary mineralisation orientations in black, secondary (conjugate sets) vein orientations in blue
00 20 50 60 80 90
3000 – HUNI SE gentle dip SW mod-gentle dip veins E mod dip veins (shear S gentle dip veins Leftovers – shallow
veins (20->135) (35->235) veins) (35->090) (short strike veins (short strike
extent) (10->180) extent)
500 – mafic intrusive 3520
400 – Tarkwa phyllite 3420
300 – Banket conglomerate 5300 3220
200 – Banket sandstone 3220
100 – Huni sandstone 3180 E&W
5000 – DAMANG EW02 fault EW02 fault 5580 fault
500 – mafic intrusive 5550 5460 5580
400 – Tarkwa phyllite 5450 5460
300 – Banket conglomerate 5300 5350
200 – Banket sandstone 5250 5290
7000 – JUNO NW03 fault (data 50 mN) EW01 fault (data 50 mN)
500 – Mafic intrusive 7560 5580
400 – Tarkwa phyllite 7460
300 – Banket conglomerate 5300 7350 7260
200 – Banket sandstone 7250 7260 5290
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FIG 19 - Damang west-east cross-section (25550 mN) showing the
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FIG 20 - West to east Leapfrog Mining® screenshot showing a region B

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 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: k.spragg@aranz.com
4. MAusIMM, Geology Manager, Grange Resources Ltd, PO Box 659, Burnie Tas 7320. Email: michael.everitt@grangeresources.com.au
* 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 3 - Geological setting and location of the Savage River magnetite deposit in north-west Tasmania.

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FIG 4 - Geology of the North Pit, Savage River magnetite deposit.

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)
Sectional interpretation 10 (80)
Sectional digitising 5 (40)
Slicing and plotting 110 flitch plans 1 (8)
Flitch interpretation 5 (40)
Flitch digitising 5 (40)
Wireframe modelling and validation 15 (120)
Total 43 days (344 hours)
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YROXPHWULF²ZHUHJHQHUDWHGIRUWKLVVWXG\UHSUHVHQWLQJWKRVH Implicit modelling workflow times for the North Pit Savage River magnetite
FRPPRQO\XVHGLQWKHUHVRXUFHLQGXVWU\ mine data set.
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ð ð P )RU HDFK EORFN WKH SURSRUWLRQ RI FDWHJRU\ Setting up project and import data 60 (1)
DLU ZDVWH ORZJUDGH RUH PHGLXPJUDGH RUH KLJKJUDGH Defining the topography function f(Topo) 3 (0.05)
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SRLQWVGLVWULEXWHGLQHDFKEORFN)LJXUHD f(Waste-Ore)
Defining the low-grade to medium and high- 20 (0.33)
grade contact function f(LOre-MHOre)
Defining the medium-grade to high-grade 20 (0.33)
contact function f(MOre-HOre)
Percentage proportional equivolumetric block 660 (11)/165(2.75)
model (10 × 10 × 5 m)
Subdivided block model (10 × 10 × 5 m and 720 (12)/180 (3)
5 × 5 × 2.5 m)
Total 1563 minutes (26 hours) for single
core CPU 528 minutes (8.8 hours)
A 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.
B
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 Direct-to-block equivolumetric Direct-to-block multivolumetric (10 × 10 × 5 m,
(% of total) (10 × 10 × 5 m) block model volume (% of total) 5 × 5 × 2.5 m) block model volume (% of total)
Waste 113.4 (63.4%) 136.6 (71.0%) 138.2 (71.8%)
Low-grade ore 12.2 (7.2%) 17.2 (8.9%) 16.2 (8.4%)
Medium-grade ore Not differentiated with high-grade ore 21.6 (11.2%) 20.6 (10.7%)
High-grade ore 42.8 (25.4%) 16.9 (8.8%) 17.4 (9.0%)
6 3
Total volume (× 10 m ) 168.4 of which 55.0 is ore 192.3 of which 55.7 is ore 192.3 of which 54.2 is ore
A B
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.

A B
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 Direct-to-block equivolumetric Direct-to-block multivolumetric (10 × 10 × 5 m,
(% of total) (10 × 10 × 5 m) block model volume (% of total) 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 Not differentiated with high-grade ore 1.64 (25.2%) 1.60 (24.5%)
High-grade ore 4.56 (71.6%) 2.77 (42.6%) 2.80 (43.0%)
Total volume (× 106 m3) 6.37 of which 4.81 is ore 6.50 of which 4.89 is ore 6.52 of which 4.81 is ore
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FIG 11 - Block models compared in a small volume, with (A) NP307 explicit model output and (B) subblocked implicit model output. Block centroids
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Overview – 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, 277
N Brajkovich, J Phillips and
A-A Latscha
Multivariate Iron Ore Deposit Resource Estimation – A Practitioner’s 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, 301
M Matheson, R Singer, B Kendall
and J Vann
Estimation of Underground Mineral Resources at the Sunrise Dam Gold Mine – A Case Study in Risk F Clark, J T Carswell, N A Schofield 311
Management and M Erickson
Mineral Sands – Some Aspects of Evaluation, Resource Estimation and Reporting G Jones, B Gibson and V O’Brien 319
A Practitioner’s Guide to the Identification, Classification and Estimation of Inventory Coal and Coal Resources K B Preston 329
A Practitioner’s 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 351
N Fogden
Drilling of Mineral Resources – Towards Better Investment Decisions N A Schofield 363

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Overview – Mineral Resource Estimation

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: iglacken@optiro.com
2. MAusIMM(CP), Chief Resource Geologist, Gold Fields Exploration Inc, Suite 1650, 6400 South Fiddlers Green Circle, Greenwood Village Co 80111-4926, USA. Email: alex.trueman@gfexpl.com
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Mineral Resource Estimation of the

Brockman 4 Iron Ore Deposit in the
Pilbara Region by Rio Tinto Iron Ore
B Sommerville1, C Boyle2, N Brajkovich3, J Phillips4 and
A-A Latscha5
ABSTRACT
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1. FAusIMM, Manager Resource Geology, Rio Tinto, Level 8, 152 - 158 St Georges Terrace, Perth WA 6000. Email: bruce.sommerville2@riotinto.com
2. MAusIMM, Senior Resource Geologist, Rio Tinto, Level 8, 152 - 158 St Georges Terrace, Perth WA 6000. Email: cameron.boyle@riotinto.com
3. Senior Resource Geologist, Rio Tinto, Level 8, 152 - 158 St Georges Terrace, Perth WA 6000. Email: natalie.brajkovich@riotinto.com
4. MAusIMM, Advisor. Email: johndgphillips@gmail.com
5. MAusIMM, Superintendent Geology Modelling Projects, Rio Tinto, Level 8, 152 - 158 St Georges Terrace, Perth WA 6000. Email: anne-audrey.latscha@riotinto.com
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FIG 1 - Location of the Brockman 4 deposit.

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.

FIG 5 - Cross-section of the Brockman 4 (BS4) deposit geology.
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FIG 6 - Typical cross-section of iron in drill holes and estimated block mode. Drill hole spacing is 50 m and the section is seen looking west.

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FIG 7 - Validation swath plot of iron for the Dales Gorge 1 (DG1) unit showing numbers and grades of samples and blocks by easting.

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Multivariate Iron Ore Deposit

Resource Estimation – A Practitioner’s
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: cdv@qgconsulting.com.au
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: harvidson@golder.com.au
* 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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TABLE 1
BHP Billiton Iron Ore Resource classification reconciliation tolerance guidelines.
Resource class Estimated component Three monthly reconciliation tolerance 12-monthly reconciliation tolerance
Tonnage ± 15% relative difference ± 10% relative difference
Measured Fe % ± 1% absolute difference ± 0.5% absolute difference
P, SiO2, Al2O3, LOI % ± 15% relative difference ± 10% relative difference
Indicated Fe % ± 1% absolute difference ± 1% absolute difference
Inferred Fe % ± 1.5% absolute difference ± 1.5% absolute difference

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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,
B Kendall7 and J Vann8
ABSTRACT
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1. MAusIMM, Chief Resource Geologist, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: mkent@anglogoldashanti.com.au
2. MAusIMM, Manager – Mine Geology – Tropicana Gold Mine, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: bcatto@anglogoldashanti.com.au
3. Chief Geologist, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: mdoyle@anglogoldashanti.com.au
4. MAusIMM, General Manager – Tropicana Gold Mine, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: dgibbs@anglogoldashanti.com.au
5. Superintendent: Mine Geology – Tropicana Gold Mine, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: mmatheson@anglogoldashanti.com.au
6. MAusIMM, Manager: Exploration and Projects – Tropicana Gold Mine, AngloGold Ashanti Australia, Level 13, 44 St Georges Terrace, Perth WA 6000. Email: singersong@optusnet.com.au
7. Principal Geologist – Advanced Projects, Independence Group NL, Suite 4, Level 5, South Shore Centre, 85 South Perth Esplanade, South Perth WA 6151. Email: bruce.kendall@igo.com.au
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FIG 2 - Geological cross-section through the Havana Ore Zone at 141650N (Tropicana local grid), from Doyle et al (2013).

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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 coefÀcients 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 signiÀcant risks
to Resource estimation and grade control throughout the life of the open pit and underground mine.
Sunrise Dam has beneÀted 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 conÀrm the continuity of the structures but indicated well-
developed gold mineralisation between the structures in ground assumed to be barren or low grade.
Conditional simulation with stope optimisation has proved more beneÀcial 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: fclark@anglogoldashanti.com.au
2. FAusIMM, Mining Geology Consultant and Contractor (previously: Mining Geology Manager Sunrise Dam), 15 Elphin Road, Launceston Tas 7250. Email: jcarswell@tassie.net.au
3. MAusIMM, Manager, FSS International Consultants (Australia) Pty Ltd, PO Box 493, Beecroft NSW 2119. Email: nas@iprimus.com.au
4. MAusIMM, Vice President – Technical and Business Improvement, AngloGold Ashanti Australia Ltd, GPO Box F377, Perth WA 6001. Email: merickson@anglogoldashanti.com.au
INTRODUCTION
The Sunrise Dam gold deposit is hosted in a complexly produced 5.5 Moz of gold from 48.6 Mt grading 4.1 g/t. To
deformed and altered package of shallowly north-west date the deposit has yielded over 8 Moz of gold.
dipping rocks within the Archaean Yilgarn Craton in Remaining underground Resources stand at 23.2 Mt at
Western Australia. The mine is located at 29°05’S, 122°25’E, 2.9 g/t for 2.17 Moz. Exploration potential is considered
approximately 270 km NNE of Kalgoorlie and 45 km SSE of signiÀcant with the deposit remaining open along strike and
the township of Laverton (Figure 1). at depth.
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).
HISTORY OF DISCOVERY AND OPEN PIT MINING AT
Open pit mining commenced in the northern part of the SUNRISE DAM
deposit in 1995 by the Placer (Granny Smith) joint venture,
which produced 2.6 Moz of gold up until 2001. Open pit Discovery history
mining of the larger southern part of the deposit commenced The initial exploration tenements over Sunrise Dam were
in 1997 and to 31 December 2012, AngloGold Ashanti had taken out by Delta Gold NL in 1983. The Àrst economic

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FIG 4 - Section of Cosmo showing early interpreted wireframe outlines of ore and the final stope based on simulation modelling.
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Mineral Sands – Some Aspects of

Evaluation, Resource Estimation
and Reporting
G Jones1, B Gibson2 and V O’Brien3
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 Ànes 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 classiÀcation 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 classiÀcation.
1. MAusIMM, Principal, GNJ Consulting Pty Ltd, PO Box 2372, Bunbury WA 6231. Email: gnjconsulting@outlook.com
2. Principal Development Geologist, Iluka Resources Ltd, 140 St Georges Terrace, Perth WA 6000. Email: brett.gibson@iluka.com
3. MAusIMM, previously: Principal Development Geologist, Iluka Resources Ltd. Email: vincent.obrien789@gmail.com
INTRODUCTION
Resource estimation for mineral sands follows standard there are no signiÀcant commercially developed deposits of
estimation principles as applied to commodities throughout this style and so they are not considered here for discussion.
the Mineral Resource sector. The basic principles of The geological interpretation is focused on identifying the
Resource estimation such as assessment of all the data, geological setting, which could comprise arcuate palaeo
sound geological interpretation, appropriate supporting shorelines, larger amorphous masses such as aeolian dunal,
levels of quality assurance / quality control (QA/QC) data offshore marine sand accumulations or irregular lacustrine/
and robust geological model construction are required to alluvial deposits. The geology that hosts mineralisation may
reÁect all the inputs as with any other commodity. There
be normally stratiÀed and/or tightly constrained within
are, however, some characteristics of mineral sands that
geological boundaries/domains.
require a slightly different approach in the evaluation,
Resource estimation and eventual reporting of the Mineral The majority of mineral sand estimators have opted to
Resource estimate. keep things simple with respect to mineral sand estimation
The primary grade variables that a practitioner would techniques. There are many excellent papers by respected
want to interpolate into a mineral sands block model practitioners on the do’s and don’ts of block model
would be heavy mineral (HM), valuable HM percentages estimation and it is not the desire of the authors to reinvent
(assemblage), mineral qualities (chemistry) and material this here. Rather, this paper represents a strong inÁuence
sizing characteristics such as the proportions of oversize from the approach adopted by Iluka Resources in Resource
(eg >2 mm), slimes (eg <53 m) and sand (>53 m <2 mm) as estimation for mineral sands. CAE Studio (previously
well as rock or induration. Datamine StudioTM) is the mining software of choice used by
Typically, mineral sands deposits fall into three main types Iluka and hence, the discussion in this paper strongly reÁects
of orebodies; palaeo shorelines/marine placers, dunal/ modelling terminology referred to by that package. However,
aeolian deposits and alluvial deposits. There are rare instances the mechanics of model construction and interpolation
of hard rock ilmenite, zircon and rutile deposits; however, techniques remains consistent across the Resource sector.

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Mineral Sands – Some Aspects of Evaluation, Resource Estimation and Reporting | G Jones, B Gibson and V O’Brien
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 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.
Heavy mineral Heavy mineral
Deposit A Volume Tonnes Clay Oversize Ilmenite Rutile Zircon
tonnes grade
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 23 8 56 2 9

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A Practitioner’s Guide to the

Identification, Classification
and Estimation of Inventory
Coal and Coal Resources
K B Preston1
ABSTRACT
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1. FAusIMM(CP), Manager Resource Assessment, Rio Tinto Coal Australia Pty Limited, GPO Box 391, Brisbane Qld 4001. Email: prestonsathome@bigpond.com
INTRODUCTION
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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 – Areas with land access restrictions, eg National Parks, Seam thickness (minimum mineable and
subcrop, burn zones, washouts, intrusions, etc) strategic cropping lands, environmentally sensitive areas 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 Geotechnical factors (structural dislocation,
infrastructure 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

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Approach Comment
Strict adherence to Coal Guidelines distances between
Points of Observation. Still in use in some quarters.
Unacceptable Practice
Little or no judgement applied and isolated spots of Not acceptable industry practice.
Measured, Indicated or Inferred coal in evidence.
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.
Appropriate distances between Points of Observation Current industry good practice if the link between
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.
Full use of simulation to quantitatively assess levels of Industry best practice, providing that all key resource
confidence on all key resource parameters. parameters are considered and the link between
Leading Practice
Sensible approach taken to matching confidence levels geoststistics and classification is robust.
to confidence categories (M, I & Inf). Not widely adopted in the coal industry.
FIG 3 - Spectrum of practice in classifying coal seams according to geological confidence.

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TABLE 2
Classification of Points of Observation.
Type Points of Observation description Value and use of Points of Observation
1 Cored and analysed intersection of seam with wireline log Types 1 - 2 required for
2 Cored and analysed intersection of seam without wireline log confirmation of quality
3 Cored intersection of seam without analysis – wireline log may be Types 1 - 7 reliable
present, but not necessarily so for seam structure, Types 3 - 5 may
4 Non-cored intersection of seam with wireline log continuity and support quality
5 Surveyed in pit observation and analysed coal sample thickness
6 Pit wall observation of seam boundaries (eg SiroVision, I-Site)

7 Underground development drive observation of seam
8 Non-cored intersection of seam without wireline log Types 8 - 9 supportive
9 Seismic survey interpretation of seam presence of structure, continuity
and thickness

TABLE 3
Recommended coal quality parameters for Points of Observation test.
Coal type 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.
Raw coal
Ash (% ad) Yes Yes Basic property of coal that should be known.
ARD (ar) or RD (ad) Yes Yes Required to estimate in situ RD, hence coal mass.
Mass yield % or washability data Yes if washed Yes if washed Required to estimate product mass, hence sales tonne/revenue/economics.
Moisture (% ad) Yes Yes Basis for reporting of other quality values.
Ash (% ad) Yes Yes Required to indicate basic market appeal of both products.
Product – raw
Volatile matter (% ad) Yes Yes Required to indicate basic market appeal of both products.
or washed
Gross calorific value (kcals/kg ad) Yes - Required to indicate basic market appeal of thermal product.
CSN - Yes Required to indicate basic market appeal of metallurgical product.
Minor element (S, P, As, Hg, Fe, etc) Site dependent Site dependent 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
<20 per cent).
TABLE 4
Example of distance between Points of Observation assessment.
Seam Physical/structural character Distances between Points Coal quality Distances between Points
of Observation (m) – high, of Observation (m) – high,
reasonable, low confidence reasonable, low confidence
Theta Consistent thickness, minimal splitting, 450/900/2700 Raw ash consistent. Significant rank variation so 800/1600/3500
laterally extensive, structurally benign, no volatile matter and caking properties variable.
known intrusions. Washability predictable.
Iota Minor splitting, thinning to the south, some 380/760/2300 Raw ash variable and washability less predictable. 700/1400/3000
silling in the east. Significant rank variation, hence product caking
properties inconsistent.
Kappa Lensoidal character, inconsistent thicknesses, 300/600/1800 Raw ash very variable and washability less predictable. 450/900/2300
some washouts, silling in the east and south. Silling has locally affected caking properties.
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Basic Practice 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.
Full Economic Screening - undertake DCF analysis against a schedule, using full capital and
Leading Practice
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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A Practitioner’s 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: orondon@optiro.com
2. MAusIMM(CP), Chief Resource Geologist, Gold Fields Exploration, Inc, 6400 South Fiddlers Green Circle, Greenwood Village Co 80111, USA. Email: alex.trueman@gfexpl.com
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.
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Multivariate localised uniform conditioning

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TABLE 3
Correlation between estimated attributes using the localised multivariate
uniform conditioning (LMUC) approach.
Pd Pt Ag Au Cu Ni S
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 FIG 5 - Histograms of selective mining unit (SMU) Pd grades using 15 (top)
Ni 0.79 0.79 0.79 0.76 0.83 1.00 and 81 (middle) cut-offs in multivariate uniform conditioning (MUC) to localise
the grades. Declustered histogram of input Pd grades is shown (bottom) for
S 0.70 0.68 0.74 0.66 0.77 0.93 1.00 comparison purposes.

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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REFERENCES
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DSSURDFK WR GLUHFW PRGHOOLQJ RI VPDOO EORFNV Mathematical
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in Proceedings WK APCOM Symposium SS 7KH
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of Pd between the multivariate uniform conditioning (MUC), localised
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multivariate uniform conditioning (LMUC) and direct kriging estimates at the 5HLGHO'RUGUHFKW
selective mining unit (SMU) support.
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Resource Estimation in Folded Deposits

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1. FAusIMM(CP), Director and Principal Consultant, Optiro Pty Ltd, Level 4, 50 Colin Street, West Perth WA 6005. Email: iglacken@optiro.com
2. MAusIMM, Principal Consultant, Optiro Pty Ltd, Level 4, 50 Colin Street, West Perth WA 6005. Email: pblackney@optiro.com
3. MAusIMM, Group Mine and Resource Geologist, First Quantum Minerals Limited, Level 1, 24 Outram Street, West Perth WA 6005. Email: david.gray@fqml.com
4. MAusIMM, Consultant Geologist, Optiro Pty Ltd, Level 4, 50 Colin Street, West Perth WA 6005. Email: nfogden@optiro.com
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FIG 1 - Options for handling folded mineralisation.

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(A) Original structure and data, (B) estimation using average orientation, (C) estimation using projection.

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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 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 × 10 m × 10 m × 5m× 1m×

20 m 20 m 10 m 5m 1m
Mean 2.389 2.564 2.542 2.64 2.66
Variance 22.943 24.766 22.323 23.801 23.858
Coefficient 2.005 1.941 1.859 1.848 1.836
of variation
Minimum 0.000 0.000 0.000 0.000 0.000
Q1 0.030 0.040 0.050 0.060 0.070
FIG 6 - Global tonnage estimates using multiple indicator
Median 0.440 0.530 0.550 0.540 0.570 kriging and sampling patterns in Figure 2.
Q3 2.140 2.520 2.820 3.190 3.160
Maximum 27.150 35.460 35.460 75.90 95.000
FIG 7 - Global grade estimates using multiple indicator

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'HXWVFK & 9 DQG -RXUQHO $ * GSLIB Geostatistical Software UHFRQFLOLDWLRQV WKUHH FDVH VWXGLHV LQ Proceedings International
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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 401
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 433
Geometallurgical Guidelines for Miners, Geologists and Process Engineers – Discovery to Design D David 443
Assessment of Iron Ore Reserves – Rio Tinto’s Pilbara Experience G Danckert and L Fouché 451
Case Study – Marketing of Industrial Minerals – Iluka Resources V E Hugo 457
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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The Influence of Geotechnical and

Groundwater Factors on Ore Reserve
Estimation
T D Sullivan1,2
ABSTRACT
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1. FAusIMM(CP), Principal, Pells Sullivan Meynink, G3 56 Delhi Road, North Ryde NSW 2113. Email: tim.sullivan@psm.com.au
2. Adjunct Professor, University of New South Wales
INTRODUCTION
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TABLE 2
Approximate estimates of the likelihood of major problems with mines and mine infrastructure (based on the author’s 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 1 to 5 1 in 100 to 1 in 20
inundation
Water storage Major problem or failure of major significant storage body 1 1 in 100
Coffer dam Major stability issue and/or leakage 0.1 1 in 1000
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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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TABLE 3
Approximate levels of accuracy required for project mining studies (after Ballard, 1983; Coleman and Westcott, 1983; White, 2001).
Type of study Generally accepted accuracy Approximate equivalent
Main descriptor Secondary or equivalent terms Project level of cost estimates (%) order of accuracy required
in slope angles (°)
Scoping
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Preliminary 1 ± 30 to 50 ± 10 to 15
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Pre-Feasibility 2 ± 20 to 25 ± 5 to 10
Feasibility 3 ± 15 ± 3 to 5a
Detailed design Detailed mine planning
4 ± 5 to 10 ± 1 to 3
Design and construction
a. Read and Stacey (2009) quote ±5°.
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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 Conceptual Pre-Feasibility Feasibility Design and construction Operations
Geotechnical level status Level 1 Level 2 Level 3 Level 4 Level 5
Qualitative ranking Low Low Reasonable High Increasingly high
Key technical areas Target levels of data confidence
Geology >50% 50 - 70% 65 - 85% 80 - 90% >90%
Structural >20% 40 - 50% 45 - 70% 60 - 75% >75%
Hydrogeological >20% 30 - 50% 40 - 65% 60 - 75% >75%
Rock mass >30% 40 - 65% 60 - 75% 70 - 80% >80%
Geotechnical >30% 40 - 60% 50 - 75% 65 - 85% >80%

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Porgera underground production statistics.
Year Actual mine production Predicted mine production
Tonne Grade g/t Au Tonne Grade g/t Au
1990 - 1991 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 15.4

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Mining Dilution and Losses

in Underground Mining*
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The Assessment and Management

of Coal Recovery in Open Pit Mines*
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TABLE 1
Impact of some loss and dilution mechanisms.
Location 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.
Roof
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.
Floor
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.
Edge 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 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 FIG 6 - A block of coal exposed and cleaned up ready for mining. The left-hand
caused during exposure and clean up. (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
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FIG 7 - Loose material is being pushed up by dozers to expose the coal roof.
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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.

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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.

Mining accuracy
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FIG 11 - Screen from the ACARP Mine–Plant interaction model showing

%1B' 1.4 the target horizon for stripping set at the actual waste/coal interface.
5RRI 1.2
1.0
0.8
0.6
0.4
Dilution 0.2
Loss 0.0
Av.Dilution -0.2
Av.Loss -0.4
-0.6
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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.
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FIG 10 - Model for the exposure of a seam roof. There is a characteristic bias WREHPP&RQYHUWLQJWKHVHWKLFNQHVVHVLQWRWRQQDJHDOORZV
towards a greater thickness of coal loss than dilution when exposing a coal WKHPDVVSHUFHQWDJHORVVDQGGLOXWLRQWREHHVWLPDWHG
roof. The sine wave is therefore displaced below its mean position. The average $ VLPLODU VLWXDWLRQ DULVHV ZKHQ PRGHOOLQJ WKH H[SRVXUH
dilution thickness is the average thickness represented by the light-coloured area RI VHDP ÁRRUV ZKHUH LQ JHQHUDO OLWWOH FRDO LV OHIW EHKLQG
above the actual excavated surface, and the average loss thickness is the average EXWVLJQLÀFDQWGLOXWLRQLVWDNHQZLWKWKH520FRDO7KLVLV
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 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).

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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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: pjlewis@bigpond.net.au
INTRODUCTION
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0RVWPHWDOOXUJLVWVZRXOGDJUHHWKDWRXWVLGHRIWKHLURZQ TABLE 1
GLVFLSOLQHWKHUHLVOLWWOHXQGHUVWDQGLQJRIWKHDPRXQWRIZRUN Liaison between metallurgist and other disciplines during project
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REFERENCES
/HZLV3-DQG6WUHHWV&*$QDQDO\VLVRIEDVHPHWDOVPHOWHU
WHUPVLQProceedings 11th Commonwealth Mining and Metallurgical
SUMMARY CongressSS7KH,QVWLWXWLRQRI0LQLQJDQG0HWDOOXUJ\
7R FRQYHUW D 0LQHUDO 5HVRXUFH LQWR DQ 2UH 5HVHUYH WKH /LVWHU%$VHFRQGLQWHUODERUDWRU\VXUYH\RIWKHDFFXUDF\RI
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UHSUHVHQW RQH RI WKH PRUH LPSRUWDQW RI WKHVH &RQVLGHUDEOH /LVWHU%DQG*DOODJKHU0-$QLQWHUODERUDWRU\VXUYH\RIWKH
LQWHUGLVFLSOLQDU\OLDLVRQLVQHHGHGWRPHHWWKHPHWDOOXUJLFDO DFFXUDF\RIRUHDQDO\VLVTransactions of the Institute of Mining and
MetallurgyApplied Earth Science%%.

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Geometallurgical Guidelines for

Miners, Geologists and Process
Engineers – Discovery to Design
D David1
ABSTRACT
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Assessment of Iron Ore Reserves –

Rio Tinto’s Pilbara Experience
G Danckert1 and L Fouché2
ABSTRACT
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1. MAusIMM, General Manager Strategy, Iron Ore, Rio Tinto, 152 - 158 St Georges Terrace, Perth WA 6000. Email: gerard.danckert@riotnto.com
2. Manager Resource Studies and Technology (CP Ore Reserves), Rio Tinto, 152 - 158 St Georges Terrace, Perth WA 6000. Email: leon.fouche@riotinto.com
INTRODUCTION
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FIG 1 - Rio Tinto’s current sustaining capacity and future operations in the Pilbara.

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Assessment of Iron Ore Reserves – Rio Tinto’s Pilbara Experience | G Danckert and L Fouché
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 Mineral Resource Ore Reserve Product grade
ore products Mt % Fe Mt % Fe % Fe (lump) % Fe (fines)
Pilbara blend product 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 58.5
Indicated 210 57.7 Probable 0.4 58.9
Inferred 2345 57.0
Robe River product 2785 57.1 274 57.2 57.0 57.0
Indicated 1483 58.2 Probable 99 57.0
Inferred 1155 55.6
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TABLE 2
Iluka’s Ore Reserve breakdown by country, region and JORC category at 31 December 2012 (Iluka, 2013b).
Summary of Ore Reservesa,b,c for Iluka Heavy minerals assemblaged
Country Region Ore Resource Ore tonnes In situ heavy Heavy minerals Ilmenite Zircon grade Rutile grade
category (M) minerals (Mt) grade (%) grade (%) (%) (%)
Eucla Basin Proved 130.2 5.87 4.5 28 1 5
Probable 3.4 0.07 2.1 20 51 5
Total Eucla Basin 133.5 5.94 4.4 28 51 5
Murray Basin Proved 8.8 2.25 25.6 53 11 18
Australia Probable 11.6 1.80 15.5 46 14 19
e
Total Murray Basin 20.4 4.05 19.9 50 12 18
Perth Basin Proved 9.5 0.87 9.1 60 14 2
Probable 306.4 16.59 5.4 59 10 5
f
Total Perth Basin 315.9 17.46 5.5 59 10 5
Atlantic Seaboard Proved 20.3 0.90 4.4 69 15 -
USA Probable 14.4 0.61 4.2 57 18 -
g
Total Atlantic Seaboard
Total Probable 335.8 19.08 5.7 58 11 6
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
Iluka’s Mineral Resource breakdown by country, region and JORC category at 31 December 2012 (Iluka, 2013b).
Summary of Mineral Resourcesa,b,c for Iluka Heavy minerals assemblaged
Country Region Mineral Material In situ heavy Heavy Ilmenite Zircon grade Rutile grade
Resource (Mt) minerals (Mt) minerals grade (%) (%) (%)
category grade (%)
Eucla Basin Measured 210.6 8.38 4.0 34 43 4
Indicated 80.8 1.47 1.8 13 60 5
Inferred 151.3 10.25 6.8 66 16 2
Total Eucla Basin 442.8 20.10 4.5 49 30 3
Murray Basin Measured 16.1 3.23 20.1 52 11 16
Indicated 127.2 24.23 19.1 56 11 13
Australia
Inferred 78.7 9.23 11.7 48 10 15
Total Murray Basin 221.9 36.69 16.5 54 11 14
Perth Basin Measured 518.9 29.33 5.7 58 10 5
Indicated 352.4 18.82 5.3 57 10 5
Inferred 257.4 12.19 4.7 57 9 5
Total Perth Basine 1,128.6 60.34 5.3 57 10 5
Atlantic Seaboard Measured 24.7 1.01 4.1 69 15 -
Indicated 57.1 3.04 5.3 64 12 -
USA
Inferred 35.9 1.52 4.2 65 8 -
Total Atlantic Seaboardf 117.7 5.57 4.7 65 11 -
Total Indicated 617.5 47.56 7.7 56 12 9
Total Inferred 523.3 33.19 6.3 58 11 6
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 O’Brien (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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Mineral Resources and Ore Reserves

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ABSTRACT
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1. FAusIMM(CP), Principal, Geos Mining, Suite 301, 68 Alfred Street, Milsons Point NSW 2061. Email: sue@geosmining.com
2. FAusIMM(CP), Self employed, Unit 84, 2 Ulmarra Place, East Lindfield NSW 2070. Email: wendoe@bigpond.com
INTRODUCTION
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TABLE 1
Market segments for two hypothetical deposits.
Market segment Net ex-mine Market size Treatment Market location
price ranking ranking
Garnet deposit, SE Queensland
Abrasive 2 3 -1 mm in bulker bags Local (south-east Queensland)
Abrasive 3 2 -1 mm in bulker bags New South Wales and
North Queensland
Water filtration 1 4 Various sizes, usually sold in bulk Australia
Abrasive 3 1 Export
Clay-rich sand deposit, Sydney basin
Mortar sand, sold to builders’ suppliers 2 2 Blending to achieve consistent sizing, mixed bulk Local and Sydney region
and bagged sales
Construction companies for concrete 1 1 Washed, sized to strict specifications (need Local and Sydney region
accredited testing), sold in bulk
Local councils (for road repairs and concreting) 4 2 Washed, sized, various specifications, sold in bulk Local district only
Fine sand, local nurseries and builders’ suppliers 3 3 Washed, sized, mixed bulk and bagged Bulk local only, bagged Sydney region
Fill 5 4 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.

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TABLE 1
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Labour Energy Consumables Reagents Maintenance parts Subcontract Other
Mining Labour list Fuel and power Drill, blast, GET $/h equipment General items
Processing Labour list Fuel and power Crush, grind Usage rate % Factor General items
Product transport Labour list Fuel and power $/h equipment $/t product General items
General and admin Labour list Fuel and power % Factor General items
Royalties % Factor
Community $ Allowance
Carbon tax $/t carbon
Closure Labour list Fuel and power $/h equipment
Contingencies % Factor
GET – ground engaging tools.
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FIG 3 - Typical ‘spider’ sensitivity diagram.
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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: michael.ridd@oktedi.com
2. General Manager, Health, Safety, Environment and Security, Rio Tinto Coal Mozambique, No 1123, Third Floor, 24 de Julho Avenue, Maputo, Mozambique. Email: peter.eaglen@riotinto.com
3. MAusIMM(CP), Environmental Consultant and Researcher, Centre for Mined Land Rehabilitation, The University of Queensland, St Lucia Qld 4072. Email: c.unger1@uq.edu.au
INTRODUCTION LAND ACCESS

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Community Consultation –
The Ok Tedi Experience
M Werror1
ABSTRACT
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1. General Manager Government and External Relations, Ok Tedi Mining Limited, PO Box 1, Tabubil, Western Province, Papua New Guinea. Email: musje.werror@oktedi.com
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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 Village meeting 4 Inform 156 villages of the outcome of the MLE consultation process
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.

be a successful model based on a three-level engagement Underpinning principles

structure (Figure 2):
The OTML’s charter was used to guide the MLE consultation
1. delegates meeting process, shown below.
2. regional meeting (nine regions)
We value:
3. village meeting (156 villages).
• 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 OTML’s commitment to the process,
all OTML ofÀcers involved also signed a statement of
commitment.
FIG 2 - Mine life extension communication/consultation process framework. Ok Tedi Mining Limited statement of commitment
OTML is committed to honest, open and transparent
communication with communities and is prepared to put that
This three-level engagement structure allowed information
to be disseminated to all 156 villages after each regional and commitment in writing and be judged by its performance
delegates meeting, as well as feedback from the village level against it.
to be channelled up to the regional and delegates meetings. The following statement of commitment has been agreed to:
The village meetings normally take up to Àve weeks to We, the undersigned employees of OTML make this
complete and involve the use of aircraft, helicopters, ships, personal commitment:
vehicles and dinghies to reach remote villages. Depending on
• we will at all times conduct ourselves in accordance with
the time of year, the weather can create delays to the teams
the values of the OTML charter and with the principles
reaching a village to conduct the meeting.
guiding OTML’s discussions with communities
The goal of the process was to seek the CMCA communities’ • we will adhere to the policies and procedures within this
consent for mine life extension based on the information manual and will help to improve it through providing
provided on the present and future environmental impacts
feedback to OTML management
and the beneÀts and opportunities that the extension of the
• we will behave with integrity at all times
mine presents.
• we will work hard in implementing the discussion and
The process involved the same key stakeholders engaged
review process and will make every effort to achieve our goal
in the 2006/2007 CMCA review; ie the CMCA communities,
GoPNG, the FRPG, PNGSDP and OTML. The 2006/2007 • we recognise the rights of communities to be given the
CMCA review process itself is a model that encourages information that they need to understand the effects of the
conÁict resolution and development facilitation in PNG mine on their environment and lifestyle and to receive just
because of its transparency and thoroughness. The process and appropriate compensation for negative impacts
was facilitated by an external organiser and two external • we will communicate with communities and their
observers whose role was to ensure that the process adhered representatives in an open and positive manner
to the agreed principles described below. A key feature of the • we will seek to resolve any conÁicts that arise in a
process was that it promoted transparency and strengthened constructive manner that protects and improves the
the relationships and trust amongst all the stakeholders. company’s relationships with communities.

Mine life extension communication and consultation External facilitator

process framework External facilitators were engaged as independent agents
The MLE community engagement process began in mid- in the process to facilitate all three levels of meetings.
2009 with a series of community consultation meetings that The involvement of an external facilitator in the meetings
involved four delegates meetings, four rounds of regional promoted conÀdence and integrity in the process, allowing
meetings and four rounds of village meetings (see Table 1). the objective of the MLE process to be achieved.
Figure 3 illustrates the MLE consultation process with the Tanorama Ltd, a PNG-based consultancy company who co-
communities from the start through to the signing of the facilitated the 2006/2007 CMCA Review, was re-engaged to
agreements called the CMCA Extension Agreements. 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 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
FIG 3 - The delegates meeting set-up. 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
A fair consultation process reached. There were four delegates meetings conducted.
To ensure the consent and consultation process is conducted The structure of the delegates meeting is illustrated in
in accordance with the agreed principles, all three levels of Figure 4, showing all the stakeholders including OTML
meetings – delegates, regional and village meetings – were having an equal input in all meetings. Members of the
administered by an external facilitator and observed by two delegates meeting comprised four representatives and three
external observers. Reports were produced after each meeting women leaders from each of the nine CMCA regions, plus
highlighting the messages communicated and any issues or representatives from the GoPNG, FRPG, PNGSDP and
concerns raised by the communities. OTML.
FIG 4 - Three levels of meetings – village, regional and delegates meetings.

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REFERENCES
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EH DWWULEXWHG WR WKH DJUHHG SULQFLSOHV DQG WKH HQJDJHPHQW

Ore Reserve Monitoring the
Exploration and Statistical Analysis, Modifying Factors Estimation, Resources and
Data Collection Geological Mineral Resource (Mining, Metallurgical, Classification and Reserves
Interpretation Estimation, Economic, Marketing, Reporting
The Resource and Modelling Classification and Legal, Environmental, Grade Control,
Database Reporting Social and Government) Risk and Sensitivity Production and
Assessments Reconciliation

Overview – 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
Overview – Ore Reserve Estimation

G Dunstan1
ABSTRACT
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1. FAusIMM, Head of Mining, Newcrest Mining Limited, Cadia Road, Orange NSW 2800. Email: geoff.dunstan@newcrest.com.au
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Feasibility Studies –
Scope and Accuracy*
M E White1 and I Harrington2
ABSTRACT
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1. Director, DevMin Consultants, Level 1, 130 Hay Street, Subiaco WA 6008. Email: mwhite@westnet.com.au
2. Principal, Flagstaff Consulting, Level 3, 87 Wickham Terrace, Spring Hill Qld 4000. Email: ian@harringtoncc.com.au
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TABLE 3
Tailings disposal – example of the definition levels required for increasing
levels of Feasibility Study.
Systems Process and technique used for the environmentally safe and
definition efficient method of impounding waste liquids and solids
At Conceptual Method and equipment selection is based on knowledgeable
Feasibility person and industry experience in similar projects. Preliminary
Study calculations and preliminary risk/opportunity assessment.
At Preliminary Alternate workable methods evaluated based on preliminary
Feasibility engineering and completed preliminary test work to establish
Study optimised method. Data required for permitting process defined
subject to implementation requirements.
At Definitive Detailed definition of composition and characteristics of waste
Feasibility product is completed. Supplement permitting process with any
Study changes resulting from further detailed assessment.
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development stage.
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APPENDIX 2
Comparison of estimates for economic feasibility (after Thompson, 1993)
Item Type I Type II Type III Type IV
Site
Plant capacity Assumed Preliminary Optimised Finalised
Geographic location General General Fixed Site-specific
Maps and surveys If available If available Required Detailed
Foundation tests None required None required If available Required
Site visits Possibly Recommended Essential Many by all staff
Process
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
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
Basis of capital costs
Estimates prepared by Project engineer Senior estimators Senior estimators Estimating department
Vendor quotation Previous/phone Single source Multiple source Competitive
Civil work Sketches Sketches Sketches/drawings Quantity take-off
Mechanical and piping % of machinery % of machinery Quantity take-off Quantity take-off
Structural work Sketches Sketches/drawings Sketches/drawings Quantity take-off
Electrical work (ex-motors) $/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%
Operating costs
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 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.

APPENDIX 3
Checklist for work normally required for the various Data required for preparation of estimates (cont...).
classes of estimate (after Northcote, 1998; Kerzner, 1992) Estimate type
Estimate type Item 10% 15% 25% 30%
Item 10% 15% 25% 30% Site
Enquiry X X X Property protection X X
Legibility X X Accessibility to site X X
Copies X Shipping and delivery conditions X X
Schedule X X X Major cost is factored X
Vendor enquiries X X X Major equipment
Subcontract packages X Preliminary sizes and materials X X X
Listing X X X X Finalised sizes and materials X
Site visit X X X Bulk material quantities
Estimate bulks X X X X Finalised design quantity take-off X
Labour rates X X X Preliminary materials and take-off X X X
Equipment and subcontract selection X X X X Engineering
Taxes, insurance and royalties X X X X Plot plant and elevations X X X
Home office costs X X X X Routing diagrams X X
Construction indirects X X X X Piping line index X
Basis of estimate X X X X Electrical single lines X X X
Equipment list X X X X Fire protection X X
Summary sheet X X X X Sewer systems X X
Management review X X X X Professional services – detailed estimate X
Management approval X X X X Professional services – ratioed estimate X X X
Computer estimate X X X Construction
Labour wage, labour on-costs, travel rates X X X X
Labour productivity and area practices X
Data required for preparation of estimates
Detailed construction execution plan X
(after Northcote, 1998; Kerzner, 1992)
Field indirects – detailed estimate X
Estimate type Field indirects – ratioed estimate X X X
Item 10% 15% 25% 30% Schedule
General Overall timing of execution X X
Product X X X X Detailed schedule of execution X X
Process description X X X X Estimating preparation schedule X X
Capacity X X X X
Miscellaneous
Location – general X
Transportation rates X
Location – specific X X X
Start-up X X
Basic design criteria X X X
Insurance and taxes X X X X
General design specification X X
Royalties X X X X
Process
Import/export rates X X X X
Process block flow diagram X
Financing data X X X X
Process flow diagram X X
Escalation
Mechanical process and instrument diagrams X X
Escalation analysis X X X X
Equipment list X X X X
Site Contingency
Soil conditions X X X Identifiable risk analysis X

Site clearance X X
Geological and meteorological data X X
Roads, paving and landscaping X X

HOME
Reflections on Front-End Loading

in Mine Project Development
J H Shillabeer1
ABSTRACT
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Reflections on Front-End Loading in Mine Project Development | J H Shillabeer
QRWLFH DQG WKH\ FRPH WR WKH SURMHFW FROG *RRG SUHSDUDWLRQ TABLE 1
IRU JDWH DQG LQGHSHQGHQW SHHU UHYLHZV SD\V GLYLGHQGV E\ The top seven of 26 influencers that promote project failures
SURPRWLQJ IUDQN DQG FRQVWUXFWLYH SURMHFW GLVFXVVLRQV DQG in rank order (after Powell, 2003).
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Rank Influencer
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EXWDSURMHFWPXVWUHFHLYHDJDWH¶SDVV·EHIRUHLWLVVXEPLWWHG 1 Poor scope definition
IRUDIXWXUHIXQGLQJGHFLVLRQ 2 Lack of project management discipline
3 Fire fighting
WHY DO PROJECTS CONTINUE TO FAIL? 4 Poor business processes
3URMHFWV FRQWLQXH WR JR ZURQJ LQ VSLWH RI )(/ 6WHYHQV 5 Incomplete specifications
SURYLGHV D VREHULQJ OLVW RI PDMRU $XVWUDOLDQ SURMHFWV
6 Poor change control
WKDW VXIIHUHG VLJQLÀFDQW FRVW EORZRXWV $OWKRXJK SXEOLVKHG
UHSRUWV XVXDOO\ IRFXV RQ GUDPDWLF LQFUHDVHV LQ FDSLWDO FRVW 7 Inadequate systems thinking
WKHUHDUHSOHQW\RIRWKHUSRWHQWLDOFDXVHVRIIDLOXUHRUDWOHDVW
FRUSRUDWH GLVDSSRLQWPHQW LQFOXGLQJ XQVDIH RU XQKHDOWK\ TABLE 2
ZRUNLQJ FRQGLWLRQV SRRU SURGXFW TXDOLW\ KLJK RSHUDWLQJ Other common project delivery issues.
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JXDUGDJDLQVWDOORIWKHVH 1 Projects are allowed through gates despite deficiencies: the gate is not
3URYHQ DQG 3UREDEOH 2UH 5HVHUYHV DUH XVXDOO\ WKH RQO\ rigorously applied.
SURMHFW DVVHW RI FRQVHTXHQFH ,I WKH 2UH 5HVHUYHV DUH QRW 2 Deficient Ore Reserves, for example not enough proven material for ramp-
FUHGLEOH WKH )(/ VWXGLHV DQG SURMHFW GHYHORSPHQW EHFRPH up or variations in ore physical properties underappreciated.
DQ HPSW\ H[HUFLVH 6HULRXV 2UH 5HVHUYH HUURUV VHHP WR EH
3 Too many changes are allowed because the scope is not tightly defined
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in front-end loading (FEL) 3 with a view to eliminating as many ‘optional’
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changes as possible.
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5HVRXUFHDQG5HVHUYHHVWLPDWHVDQGWROLPLW5HVRXUFHULVN 4 The knock-on or secondary effects of changes are not appreciated. Cooper
(2011) and Cooper and Lee (2009) have found through analysis and
7KHTXDOLW\RI)HDVLELOLW\6WXGLHVLQWKHDXWKRU·VRSLQLRQ simulations on many projects that the secondary effects of changes can
FRQWLQXHV WR LPSURYH ODUJHO\ DV D UHVXOW RI WKH DGRSWLRQ RI be from two to four times the direct cost of the change. Taylor and Ford
)(/DQGWKHFRGLÀFDWLRQRIUHTXLUHPHQWVHJLQ&,6+RZHYHU (2008) showed that the cumulative effects on complex projects can be
WKHUHLVVWLOODZLGHYDULHW\RIVWXG\WUHDWPHQWVDQGTXDOLW\ devastating.
7KHEHVWVWXGLHVDUHQRZPRUHFRPSUHKHQVLYHKDYHVXIÀFLHQW
5 Risk analyses are insufficiently comprehensive (external risks are rarely
VLWHVSHFLÀFGDWDDGGUHVVVRIWLVVXHVSURFHHGPRUHORJLFDOO\
costed) and as a result risk treatment plans and contingency allowances
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are under estimated.
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SURFHVVHV DQG RSWLPLVDWLRQ DQG DGGUHVV ULVN 7KHUH LV DOVR 6 Unwarranted assumptions and or exclusions are not challenged and as a
PXFKPRUHIRFXVRQH[HFXWLRQSODQQLQJDQGDSURSRUWLRQDWH result risk and contingency are underestimated.
LPSURYHPHQW LQ H[HFXWLRQ SODQV FRPSOHWHG EHIRUH SURMHFW 7 Underestimation bias by consultants and engineers of project costs in
VDQFWLRQKRZHYHUSURMHFWVVWLOOFRQWLQXHWRIDLO:K\" order to have the project proceed to the next stage, thereby creating an
$GYDQFHV LQ SURMHFW PDQDJHPHQW LQ WKH H[HFXWLRQ SKDVH opportunity to win the next stage contract. Underestimation by contractors
KDYH QRW PDWFKHG WKH EHVW LQ )(/ VWXGLHV LQ WKH DXWKRU·V when bidding in order to win a contract in stage four with an expectation
to make it up through extras.
RSLQLRQ $W WKH VDPH WLPH SURMHFWV DUH RIWHQ PRUH FRPSOH[
DQG PRUH H[SHQVLYH WKDQ LQ WKH SDVW VR WKHUH DUH PRUH 8 Disagreements among the owners when in a joint venture leads to delays
RSSRUWXQLWLHVIRUWKLQJVWRJRZURQJ and disruption.
9 The selected contracting strategy makes for inappropriate risk sharing
Some causes of project failures between the major parties, resulting in claims and loss of momentum.
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Focusing on delivery
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&OHDUO\WKHWRSUDQNHGLQÁXHQFHULQ7DEOH²ODFNRIVFRSH LQFOXGH OLVWV RI GHOLYHUDEOHV DQG FKHFNOLVWV RI DUHDV WR FRYHU
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TABLE 3 DQGQRWIRXQG
Helpful execution questions at gate three.
No Questions ACKNOWLEDGEMENTS
1 Where are the physical and temporal boundaries between the scopes 7KH DXWKRU ZRXOG OLNH WR WKDQN KLV FROOHDJXHV DW +DWFK ²
of work assigned to different groups? What precautions were taken to 3DXO %XUURZV 0LFKDHO *UHHQ DQG *UHJ 5DPVD\ ² IRU WKHLU
eliminate interface issues? LQVLJKWIXOVXJJHVWLRQVDQGFRPPHQWV
2 Does everyone share the same project vision and have the same
expectations of the investment? How do you know?
REFERENCES
3 Have you checked the fine print in the estimate, including the exclusions %LHUU\ ) +ROORQGV $ DQG <RXQJ 5 0LQHUDOV DQG PHWDOV
and assumptions? Do they correspond to the claimed precision, accuracy, SURMHFW SHUIRUPDQFH DQG LPSURYHPHQW RSSRUWXQLWLHV LQ
scope, schedule and quality? 3URFHHGLQJV 3URMHFW (YDOXDWLRQ SS 7KH $XVWUDODVLDQ
4 When do you plan to start in the field? Is this the optimum, considering ,QVWLWXWHRI0LQLQJDQG0HWDOOXUJ\0HOERXUQH
the current status of engineering and procurement? &DPXV - 9DOXH FUHDWLRQ LQ WKH PLQLQJ EXVLQHVV Mining
Engineering
5 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 &RQVWUXFWLRQ ,QGXVWU\ ,QVWLWXWH 5HSRUW 9DOXH RI EHVW
ones specified in the contingency allowance? SUDFWLFHV %00 >RQOLQH@ $YDLODEOH IURP KWWSZZZ
FRQVWUXFWLRQLQVWLWXWHRUJ!
6 What time has been allocated for the next independent peer reviews? Is
the timing sufficient? &RQVWUXFWLRQ,QGXVWU\,QVWLWXWH%HVWSUDFWLFHJXLGHLPSURYLQJ
SURMHFWSHUIRUPDQFHGUDIW.QRZOHGJHDUHD3URMHFWSODQQLQJ
7 Many projects want to be ‘fast track’. What does that actually mean %HVW SUDFWLFH )URQW HQG SODQQLQJ >RQOLQH@ $YDLODEOH IURP
in practice? How will fast track project management differ from KWWSZZZFRQVWUXFWLRQLQVWLWXWHRUJ!
conventional? For example, will procurement decisions be made on
&RRSHU . 0DQDJLQJ WKH G\QDPLFV RI SURMHFWV DQG FKDQJHV
schedule regardless of the status of engineering deliverables? Has this $YDLODEOHIURPNHQFRRSHU#NFRRSHUDVVRFLDWHVFRP!
been recognised in the estimate?
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8 How have detailed engineering and construction productivity factors been DQG FKDQJHV DW )OXRU $YDLODEOH IURP NHQFRRSHU#
benchmarked? NFRRSHUDVVRFLDWHVFRP!
9 What other projects will be in construction in the region and competing *\SWRQ & DQG :DUG ' )HDVLELOLW\ VWXG\ TXDOLW\ FDSLWDO
for construction resources? RYHUUXQV DQG LQYHVWPHQW GHFLVLRQ SUHVHQWHG WR 1RUWKZHVW
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10 How will the project cope with information delays?
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11 What steps have been taken to eliminate as far as possible all changes VWXGLHV LQ 3URFHHGLQJV 3URMHFW (YDOXDWLRQ SS 7KH
after sanction? $XVWUDODVLDQ,QVWLWXWHRI0LQLQJDQG0HWDOOXUJ\0HOERXUQH
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Whittle Optimisation –
The Money Mining Methodology
and Its Impact on Ore Reserves
G Whittle1
ABSTRACT
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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: stephen.butel@pacroad.com.au
2. MAusIMM, Analyst, Pacific Road Capital Management, Level 23, 1 Alfred Street, Sydney NSW 2000. Email: andrew.ferrier@pacroad.com.au
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.
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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: jo-anne.dudley@riotinto.com
INTRODUCTION
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FIG 12 - Example of waterfall chart showing value change between study phases.
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Reserve Estimation for Block Cave Mines Using PCBC | T Diering

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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 Reserve classification
Vertical within a draw column Overall behaviour well understood even if difficult to model Low This would form part of the highest confidence level of
Reserve (eg Measured)
Horizontal between draw columns Rilling is well understood, but more difficult to model. Moderate Material that undergoes rilling may still be recovered, but
Depends strongly on cave propagation and mining sequence often, dilution material can rill into a gap, delaying the
arrival of higher ore
External material flowing into draw Highly unpredictable High Great caution should be exercised before including this
columns material in an Ore Reserve
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TABLE 2
Abbreviated Reserve evaluation checklist.
Dilution Flow Economics Excavation geometry Sequence and history Residual and multi-lift
t Geometric t Vertical t Maximum height of draw t Drawpoint spacing t Start point t Single versus multilift
t Side t Horizontal t Minimum height of draw t Tunnel spacing t Interior t Simple background
t Base t Rilling t Haircut t Hydraulic radius t Exterior t Computed background
t Internal t Erosion t Time discounting t Flat versus inclined t Single versus multipanel t Confidence level
t Flow t Toppling t Revenues t Block versus panel t Number of cave initiation t Historical records
t Top t Compaction t Costs perimeter points t Metal balance
t Flow t Inclined t Smooth t Dilution on shared
t Orebody t Pit failure t Base of cones boundaries
t Shape t Fragmentation
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Geotechnical Modifying Factors to

Be Considered When Determining
the Status of Longwall Reserves
R W Seedsman1
ABSTRACT
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1. FAusIMM(CP), Seedsman Geotechnics Pty Ltd, Mittagong NSW 2575. Email: sgplross@bigpond.com
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).
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FIG 2 - Terminology applied to longwall layouts (two heading gateroads). FDQEHH[WUHPHYDULDELOLW\HYHQEHWZHHQGULOOKROHVVSDFHGDW
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Geotechnical Modifying Factors to Be Considered When Determining the Status of Longwall Reserves | R W Seedsman
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FIG 4 - Models for joints and cleats in flat lying and folded strata (from Fookes, Baynes and Hutchinson, 2000).

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 6 - Weighting zones as a function of massive unit thickness and panel width (reproduced from Strata Engineering (Australia), 1997).

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Tip-to-face 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).

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 12 - The goaf angle concept to estimate equivalent span.

FIG 13 - Relationship between massive unit thickness and equivalent spans to ability to span.
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TABLE 1
General guidelines for roadways in single seam longwall layouts
and less than 5.5 m wide.
Extended cuts In-place bolter miners
Ground conditions Stone roof >300 mm thick All roof types
Coal roof >500 mm thick Faults
No faults
Bolts – development Minimum four bolts One of X grade 22 mm
roadways every 1.5 m diameter bolt/m for every
55 m depth of cover
Long tendons – Rock strength index <3
development roadways
Skin – development Spot bolts possible Mesh panels preferred
roadways
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 Qualified Justified
General requirements and Broad indication of spatial variability of the in situ geotechnical High level of confidence in the spatial variability. Comprehensive scope of
model reliability characteristics. Reasonably reliable mine design parameters. Possible analysis could be applied. Possible variability in the geotechnical model
variability could have moderate impact on economic viability. would not significantly affect the economic variability.
Minimum geotechnical Tip-to-face, floor strength, caving
Geology model
Seam geometry Thickness, depth and dip over an area of say 20 km2 from the resource estimate
Seam continuity – faults Thrust faults, Normal faults with throws greater than half seam thickness identified
Bedding shears from drilling and/or geophysics
Igneous activity – dykes Regional model Geophysical survey for dykes with magnetic properties.
Blind to non-magnetic ones
Weathering/alteration Regional model for alteration below base of weathering Well defined near base of weathering
Rock mass
Roof and floor lithologies From resource drilling
Roof and floor strengths 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 Site-specific borehole studies
Massive overburden units Core logging supported by depositional environment model Site-specific borehole studies
Stress regime Breakout and regional models Breakout and borehole overcore or hydraulic fracture
Hydrogeological model Regional model Site-specific

FIG 20 - JORC, geotechnical and subsidence study flow paths.
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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, 593
S Moayer, G Nicholas and R Wolff
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, 619
R Lacourt Rodrigues and C Queiroz
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 H Arden and W Lewis 635
Coal Projects
HOME
Overview – Risk in Resource

and Reserve Estimation
C De-Vitry1
ABSTRACT
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TABLE 1
Example of one item in a risk register based on Table 1 from the JORC Code (2012).
Criteria Explanation Risk Controls Consequence Likelihood Risk rating Responsible
Sampling techniques and data
Orientation of All holes are Several vertical dykes Detailed magnetic survey Moderate Possible Medium Senior geologist
data in relation to vertical. intersected. Volume may and 12 non-vertical holes
geological structure. be underestimated by planned before end of
vertical drilling. financial year.
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FIG 3 - Risk versus effort diagram for selected items in Table 1 of the JORC Code (2012). Items are coloured on risk rating –
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The Importance of Understanding

Uncertainty and Risk Associated with
All Geological Inputs to Ore Reserves
M Berry1
ABSTRACT
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1. Principal Geologist, AMC Consultants Pty Ltd, Level 21, 179 Turbot Street, Brisbane Qld 4000. Email: mberry@amcconsultants.com
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 $0.40 M (based on earnings of $35 M/a for five years delayed by ten days at 10% discount rate)
elsewhere in the mine due to extra material mined
Back-filling of void requires more time and material than $0.05 M (based on a nominal filling cost of $10/t)
planned
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: sj@qgroup.net.au
6. CEO, Cooperative Research Centre for Optimising Ore Extraction (CRCORE), PO Box 6043, St Lucia Qld 4067. Email: a.bye@crcore.org.au
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: sc@qgroup.net.au
9. MAusIMM, Principal Consultant, Quantitative Group, PO Box 1304, Fremantle WA 6959. Email: sm@qgroup.net.au
10. FAusIMM, Director – Natural Resources, ANZ Institutional Banking, 7/77 St Georges Terrace, Perth WA 6000. Email: grant.nicholas@anz.com
11. Professor and Chair in Geostatistics and Mine Planning, WH Bryan Mining and Geology Research Centre, The University of Queensland, Brisbane Qld 4072. Email: rodney.wolff@uq.edu.au
INTRODUCTION
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Scenario Thinking – A Powerful Tool for Strategic Planning and Evaluation of Mining Projects and Operations | J Vann et al
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RSSRUWXQLWLHVDQGGRZQVLGHULVNVPRUHFOHDUO\ Summary of salient features, aims and assumptions of the traditional
project evaluation paradigm versus the approach proposed here,
scenario-based project evaluation.
SCENARIO-BASED PROJECT EVALUATION
Traditional approach Scenario-based/
Overview of the approach variability-driven approach
$ VSHFLÀF DSSOLFDWLRQ RI VFHQDULR WKLQNLQJ LV SURSRVHG IRU Static view Dynamic, stochastic, systems view
PLQHUDOSURMHFWHYDOXDWLRQVFHQDULREDVHGSURMHFWHYDOXDWLRQ Driven by engineering (downstream) Driven by mineralisation characteristics
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Input is singular: averaged kriged model Input is multiple: unsmoothed
8VHRImultiple simulated inputsIRUWKHPLQHUDOLVDWLRQLH – understates variability conditional simulation – captures
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Resource uncertainty and risk not Resource uncertainty and risk modelled
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modelled through value chain at selective mining
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DW WKH VFDOH RI VHOHFWLYH PLQLQJ XQLWV 608V ZKLFK Aimed at prediction/forecasting Aimed at robust decision-making in the
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PLQHSODQQLQJDQGPLQHUDOSURFHVVLQJ product quality and resultant cash flow prediction of quality and resultant cash
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and scenarios for externalities). The alternatives for the mining-processing pathways constitute the domain of levers for the firm.

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FIG 5 - Annual tonnes sent to plant over life-of-mine.

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Non-Technical Risks and Their

Impact on the Mining Industry
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: allan.trench@crugroup.com
2. MAusIMM, Professor, Department of Mineral and Energy Economics, Graduate School of Business, Curtin University of Technology. Email: daniel.packey@gsb.curtin.edu.au
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: john.sykes@greenfieldsresearch.com
INTRODUCTION
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Refer to relevant sections of

Technical Monograph 30: Mineral Resource and
Ore Reserve Estimation - The AusIMM
Risk Guide to Good Practice
Resource Nationalism
Geographical
(Country) Land Access
Land Claims
Commodity
Red Tape
Prices
Mining Non- Green Tape
Technical Exchange Rates Corruption

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Civil Unrest
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Australasian Mine
Risk Safety Journal
FIG 1 - Classification of risks in mining.

Non-Technical Risks and Their Impact on the Mining Industry | A Trench, D Packey and J P Sykes
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TABLE 2
Summary of the Fraser Institute annual survey of mining (data: Fraser Institute, 2012).
Rank Country Policy potential Administration Low trade barriers Political stability Low corruption Mining certainty
certainty (%) (%) (%) (%) (%)
1 New Brunswick 95.0 31 43 77 69 41
2 Finland 92.4 37 44 65 79 41
3 Alberta 91.5 40 52 72 67 41
4 Wyoming 89.6 41 42 58 72 37
5 Quebec 89.0 48 41 60 59 30
~ ~ ~ ~ ~ ~ ~ ~
89 India 12.4 14 0 0 0 7
90 Venezuela 10.9 7 0 0 0 0
91 Bolivia 8.1 10 2 0 0 3
92 Guatemala 2.9 6 0 0 0 0
93 Honduras 1.7 0 6 0 0 0

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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: cstanding@optiro.com
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: celeste.queiroz@cvrd.com.br
* 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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Reserves, Reserves and not a Tonne

to Mine – A Study of Reserves
Reported Prior to Mine Closure
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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 5 5 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 2 2 Uneconomic – only pillars left
Blue Mountains 1999 0.7 4 Reserve depletion
Brimstone 2000 5 5.5 Uneconomic
Bulli 1987 30 35 Reserve depletion
Canyon 1997 11 12 Reserve depletion – underground Lithgow
Coalcliff 1991 6 12 Uneconomic – distance from pit top
Cooranbong 2002 2 2.5 Other – pillars left – part of Mandalong
Cordeaux 2001 4.5 5 Reserve depletion – Bulli seam, Wongawilli too gassy
Corrimal 1985 11 11 Uneconomic
Cumnock #1 2006 5 5 Geology – geotech/roof issues – may reopen as open cut
Dartbrook underground 2006 55 63 Uneconomic/geotech/gas – mined basal seam first?
Eloura 2006 3 17 Uneconomic
Endeavour/Newvale #2 1999 0.5 19 Reserve depletion – claystone roof/thinning seam
Enhance Place 2006 0 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 5 198 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 0 33 Reserve depletion – thinning seam
Kandos 2001 0.75 8 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 1985 25 25 Uneconomic
underground
Nardell 2003 196 196 Other – restarted as Newpac 2005 with 73 Mt
Nattai Bulli 1990 3 3 Uneconomic – transferred to Elouera and Dendrobium
Newstan 2009 2 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

TABLE 1
Cont …
New South Wales
Pelton/Ellalong 1998 48 48 Uneconomic – now part of Austar
Preston 1985 0.2 3 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 5 5 Other – industrial
Wallamaine 1985 16 16 Uneconomic/surface constraints
Wallarah 2000 6 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 4 Reserve depletion
NSW average 63 33 40
Queensland
Ballamoo 1983 Other – flood event – underground highwall entry
Blackheath (Rhonnda) 1985 35 Uneconomic – underground (1983) and open cut (1985)
Blair Athol open cut 2012 8 10 Uneconomic
Bocum / Bowen (Collinsville) 1998 45 Reserve depletion, uneconomic, outburst limits
Box Flat open cut 1989 Reserve depletion
Box Flat underground 1986 20 Other – gas explosion in 1970s, rescue team lost; loss of market
Burgowan 1997 6 Uneconomic
Cook 1982 Other – outbursts
Dacon East (Collinsville) 1983 Reserve depletion
Dawson Valley (Moura) 1988 Geology – faulting
Ebenezer 2002 Uneconomic
Garrick (Collinsville) 1987 Reserve depletion
Gregory open cut 2012 10 12 Uneconomic
Haenke (Rhonnda) 1993 20 Reserve depletion
Harrow Creek 1987 Other – priority to open cut (Peak Downs)
Jeebropilly 2006 7 Reserve depletion
Kianga 1981 100 Other – explosion
Leichhardt 1982 Uneconomic – high gas/structures
Moura open cut 1998 Reserve depletion
Moura No 4 underground 1986 32 Explosion

TABLE 1
Cont …
Queensland
Moura No 2 underground 1994 48 Explosion
New Hope (Rhonnda) 1998 0 Reserve depletion
New Whitwood 1993 Reserve depletion
New Haenke (New Hope) 1996 12 Uneconomic
underground
New Oakleigh (New 2008 18 Uneconomic
Hope)
Normanton 1979 Uneconomic
Norwich Park open cut 2012 271 275 Other
Oakey Creek underground 2002 Reserve depletion
Oakleigh 1999 7 Reserve depletion
Pipeline 2002 0 Reserve depletion
Rylance 1983 Reserve depletion
Southern 1986 Reserve depletion
South Blackwater open cut 2002 Reserve depletion
South Blackwater 2001 130 Geology – geotech (roof), faulting, uneconomic
underground
Southern Cross (Oaky) 1985 Other – market loss/power station shut down
Swanbank 2003 0 Uneconomic
Wattle Glen 1984 3 Resource depletion
Westfalen 1988 50 Resource depletion
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 6
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
n Mt n Mt n Mt n Mt n Mt
Reserve depletion 39 32 25 8 14 37 22 14 17 15
Uneconomic 34 40 25 43 5 58 23 43 11 30
Geology 6 30 6 30 0 5 30 1 30
Other 22 59 17 39 9 100 13 45 9 94
Totals/average 101 33 73 29 28 61 63 32 38 38
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2. The revised ASX Listing Rules, which become mandatory on 1 December 2013, now
require at 5.21.1 a summary of the results of the mining entity’s annual review of its
Mineral Resources and Ore Reserves be included in the company annual report.

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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: hakan.arden@imcgcl.com
2. Principal Financial Expert, IMC Group Consulting, UK, Icon Business Centre, Lakeview Drive, Sherwood Park NG15 0DT, UK. Email: winsor.lewis@imcgcl.com
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Overview – Monitoring and Exploiting the Reserve C Morley 647
Predicting the Unpredictable – Evaluating High-Nugget Effect Gold Deposits S C Dominy 659
Effective Grade Control Systems S Rose and G Fahey 679
Grade Control Based on Economic Ore/Waste Classification Functions and Stochastic Simulations – R Dimitrakopoulos and M Godoy 685
Examples, Comparisons and Applications
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 707
E Murray-Hayden
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

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Overview – Monitoring and

Exploiting the Reserve
C Morley1
ABSTRACT
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1. FAusIMM(CP), Executive Consultant, Global Director Growth and Strategy, Snowden, 87 Colin Street, West Perth WA 6005. Email: cmorley@snowdengroup.com
INTRODUCTION
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1. FAusIMM (CP), Executive Consultant, Snowden Group, Paddington Central, 1 Kingdom Street, London W2 6BD, UK. Email simon.dominy@snowdengroup.com
2. Visiting Professor, Camborne School of Mines, University of Exeter, Cornwall Campus, Penryn, Cornwall TR10 9FE, UK. Email: s.dominy@exeter.ac.uk
3. Adjunct Professor, Western Australian School of Mines, Curtin University, Bentley Campus, Perth WA 6102.
INTRODUCTION
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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

Head grade >10 g/t Au (UG) <4 g/t Au (OP) <4 g/t Au (OP) >4 g/t Au (UG) <4 g/t (OP)
>4 g/t Au (UG) >4 g/t Au (UG)
Geological complexity – Tabular Tabular Tabular to irregular Tabular to irregular Tabular to irregular
geometrical form
Geological complexity – Single composite vein Single composite vein Single composite vein(s) Composite en echelon Single composite vein(s)
internal architecture to stockwork system or stockwork system to stockwork system
Gold particle sizing Minor coarse gold 10% Coarse gold 25% >100 μm Dominant coarse gold 50% Dominant coarse-clustered Dominant coarse-clustered,
>100 μm >500 μm 50% >1000 μm 50% >1000 μm
Nugget effect 50 - 60% 60 - 70% 70 - 80% >80% >80%
Indicative sampling <300 >2500 >15 000 >30 000 >250 000
constant (K)
Indicative data spacing 20 - 30 m DD grid OP: <15 m by 15 m RC grid OP: <15 m by 15 m RC grid <15 m by 15 m DD plus <10 m by 10 m RC grid
to achieve an Indicated ±development UG: <20 m by 20 m DD UG: <15 m by 15 m DD development (potentially
Mineral Resource– plus development plus development only an Inferred Resource)
Probable Ore Reserve at the
grade control–mine design
stage based on known
deposits
Note: OP – open pit; UG – underground; DD – diamond drilling; RC – reverse circulation drilling.
Gold particle sizing

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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 μm (after Dominy et al,
2011a; images from Natural History Museum, London).
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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 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 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 Cause Error Effect Nugget effect Solution
component
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More samples
Optimised protocols
Constitution heterogeneity Fundamental sampling Poor precision Sampling or human Larger samples
More samples
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Grouping and segregation Poor precision Sampling or human
material to laboratory pulps) distribution heterogeneity More samples
Optimised protocols
Poor quality sampling protocols
DE, EE, WE, PE and AE High bias Sampling or human Efficient training
– sampling errors
Strict QA/QC
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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 35 m 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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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 Nominal
Month Probable Ore Reserve Mill Performance (mill/Reserve) Resource
*Reconciled head grade classification
based on
Tonnes (t) Grade (g/t Au) Tonnes (t) *Grade (g/t Au) Tonnes (%) Grade (%) performance
January 6900 10.8 6852 10.9 99 101 Measured
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 Challenge Solution
value chain
Evaluation – tComplex geology tExpert personnel, open-minded and dynamic approach
exploration tRepresentivity of data spacing to reality tOre characterisation
and Resource tRepresentivity of samples, subsamples and assays tGeological context/good geological control, development of orebody knowledge
estimation tDealing with skewed and mixed data populations with extreme values tGreater sample density
tDifficult to estimate local Resources without close-spaced drilling and/ tLarger samples
or underground development tOptimised sampling protocols
tLarger assay charges
tStrict quality assurance / quality control
tAppropriate and geologically controlled estimation approach
Exploitation tAs in the evaluation process tExpert personnel, open-minded and dynamic approach
– mining and tModerate to high-grade variability tGood geological control, emphasis on high-quality geological mapping and
grade control 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
tLiberated, potentially lost gold (exacerbated by coarse gold) controlled mining
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 tVariable mineralogy tExpert personnel, open-minded and dynamic approach
– mineral tVariable feed grade tAppropriate metallurgical sampling and testing program
processing tLiberated gold (exacerbated by coarse gold) 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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Effective Grade Control Systems

S Rose1 and G Fahey2
ABSTRACT
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1. FAusIMM, Principal Mine Geologist, CSA Global, PO Box 141, West Perth WA 6872. Email: steve.rose@csaglobal.com
2. FAusIMM, Director – Resources and Mine Geology, CSA Global, PO Box 141, West Perth WA 6872. Email: gerry.fahey@csaglobal.com
INTRODUCTION
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FIG 1 - Schematic of a functional grade control system. The results from reconciliation are used as feedback into assay interpretation.
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ABSTRACT
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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.
Email: roussos.dimitrakopoulos@mcgill.ca
2. MAusIMM(CP), Group Executive, Resource Modelling, Newmont Mining Corporation, 6363 South Fiddler’s Green Circle, Greenwood Village Co 80111, USA.
Email: marcelo.godoy@newmont.com
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Grade Control Based on Economic Ore/Waste Classification Functions and Stochastic Simulations | R Dimitrakopoulos and M Godoy
ECONOMIC CLASSIFICATION FUNCTIONS Profit functions

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FIG 3 - Profit-loss functions with four scenarios, correct/false acceptance for blocks called ore and correct/false
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FIG 4 - A bench of grade control data from the Walker Lake deposit. The histograms for each data set
(A), (B) and (C) are shown below the corresponding plot of data values.


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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 Results and analysis for dense blasthole spacing

Three cost/price scenarios are considered, each with a different cut-off grade.
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FIG 6 - Summary of outcomes from classifying the Walker Lake deposit sampled on a 6 × 6 m pattern for a low cut-off grade relative to the sample mean.
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FIG 7 - Summary of outcomes from classifying the Walker Lake deposit sampled on a 6 × 6 m pattern for a cut-off approximately equal to the sample mean.

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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 11 - Summary of outcomes from classifying the Walker Lake deposit sampled on a 3 × 3 m pattern for a middle cut-off relative to the sample mean.

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FIG 12 - Summary of outcomes from classifying the Walker Lake deposit sampled on a 3 × 3 m pattern for a high cut-off relative to the sample mean.
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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Low SGS Prof + PFS Prof -
6 m × 6 m / 195 Medium SGS Prof - PFS Prof -
High SIS min loss PFS Prof +
Low SIS min loss PFS Prof +
3 m × 3 m / 725 Medium SGS min loss PFS Prof +
High SIS min loss PFS Prof -
Notes: SGS – sequential Gaussian simulation; SIS – sequential indicator simulation.
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FIG 16 - (A) Ore/waste classification from minimum loss classification without accounting for grindability;
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Interpreting Long-Term Mine to Mill

Trends at St Ives Gold Mine
J Donaldson1, C Ferguson2 and E Murray-Hayden3
ABSTRACT
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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: emma.murray-hayden@goldfields.com.au
INTRODUCTION
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Interpreting Long-Term Mine to Mill Trends at St Ives Gold Mine | J Donaldson, C Ferguson and E Murray-Hayden
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 north–south striking dipping both east and west.
FIG 5 - East–west 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.
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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 14 - Potential explanations to the downward trend of the metal call factor.
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FIG 15 - The metal call factor (MCF) is impacted by the dominant host rock type. The yellow line
outlines the proportion of mafic to non-mafic host rock and mimics the trend of the MCF in black.

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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FIG 18 - The variability of the monthly metal call factor has been reduced due to improvements in metallurgical accounting methods.
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Reconciliation Principles
for the Mining Industry*
H M Parker1
ABSTRACT
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1. FAusIMM(CP), Technical Director, AMEC, Suite 110, 961 Matley Lane, Reno Nv 89502, USA. Email: harry.parker@amec.com
* 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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TABLE 1
Production schedule and cash flow statement for a copper mine.
Input variables
Mining ore $/t ore 2 Concentrate recovery 90%
Mining waste $/t waste 2 Freight $/t concentrate 50
Milling $/t ore 5 Smelting $/t concentrate 80
General and administration $/t ore 4 Refining $/lb 0.08
Copper price $/lb 2.5 Payable Cu 95%
Concentrate grade % Cu 29.00% Pounds/t 2204.62
Year -2 -1 0 1 2 3 4 5 … 16
Production schedule
Ore mined (Mt) 10 20 20 20 20 20 20
Waste mined (Mt) 10 20 40 40 40 40 40 40
Ore grade (% Cu) 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
Cash flow statement (M $)
Revenues 282.7 565.5 565.5 565.5 565.5 565.5 565.5
Ore mining -20 -40 -40 -40 -40 -40 -40
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 0
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 1964.1
Net present value at 8% 554.3
TABLE 2 7KHUHPD\EHYHU\JRRGPLWLJDWLQJFLUFXPVWDQFHVVXFKDV
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0.57 -5 144.0 -15 388.1 -30 6
the short-range model
0.54 -10 119.1 -30 222.0 -60 7
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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
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
Conservative grade shells and favourable lithologies on two sets of orthogonal sections may help. Also, recognition of contacts,
shells, ore-bearing >1 <1 >1 structural, lithological or alteration controls may help in projecting further in sparsely drilled areas. The use
lithologies 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.
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
Over-smoothed solution is to interpolate grade using fewer samples or a high power inverse distance method. This can have
<1 >1 About same
long-range model 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 Domains and grade shells are too selective. Consider some mixing of samples across domain boundaries with
>1 <1 About same
long-range model outlier restriction or top-cutting to control overprojection of grades.
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
Grade effects About same >1 >1
underestimated; examples are chalcocite, molybdenite and gold. Plucking of soft materials may also result in
underestimation of grade.
In dry RC, fines may not be recovered; this may affect grade. For wet RC, fines may be washed out; gold may
Reverse circulation be concentrated (placering). Weak high-grade zones may contaminate samples from above. Drilling practices
About same >1, <1 >1, <1
(RC) drilling must be improved with mud conditioning, flocculants in buckets, better splitting, or switching to core drilling
(deep holes).
Mainly related to short-range model
Effective selective mining unit is larger than plan. Very common for low-grade dump leach or stockpile
Sloppy dig-line categories with a few erratic high-grade values. Better ore-control sampling (such as every blasthole versus
>1 <1, >1 About same
layout 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.
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 Miscount on trucks delivering to mill, stockpiles.
Mainly related to poor mining practice
Mining beyond dig lines; following colour changes in muck unrelated to ore-control boundaries;
Overbreak >1 <1 About same
bonus scheme should be based on metal, not tonnes broken.
Blast heave, unplanned Blast ore and waste in opposite directions; separate ore and waste passes, remuck bays; keep waste
About same <1 <1
mixing of ore and waste out of crusher; use modern dispatch system.
Pulling too fast in block
<1 <1 <1 Piping at drawpoints; drawpoints close early due to low grade factors.
cave mines
Mainly related to received-at-mill
Belt-scales not calibrated; moisture is guestimated. Calibrate scales every two weeks; obtain weekly
Bad tonnage Either high/low No effect No effect
moisture samples; determine seasonal corrections.
Bad grade No effect <1, >1 <1, >1 Usually F2 (grade) <1; need better tailings tonnage and grade measurement and samplers.
Multiple products
<1, >1 <1, >1 <1, >1 Mill campaigns may not coincide with oretypes as segregated in pit; better communication can help.

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FIG 2 - Blast blocks (black) and blasthole (coloured) grades (per cent Cu).
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TABLE 6 VXUURXQGLQJ D SRUSK\ULWLF LQWUXVLYH &RSSHURQO\ RUHV

Detailed comparison of long-range to short-range models at Antamina Mine. DUH FRQFHQWUDWHG LQ HQGRVNDUQV LQERDUG IURP FRSSHU]LQF
RUHV WKDW DUH FRQFHQWUDWHG LQ H[RVNDUQV &RSSHU DQG ]LQF
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DQG PLQRU OHDG FRQFHQWUDWHV DUH SURGXFHG DV E\SURGXFWV
2001 to 2004
1RPLQDORUHSURGXFWLRQLVDERXW0WD
Long-term modela 66.8 1.49 0.25 993 165
Blast blocks b
71.1 1.54 0.23 1096 164 Reconciliation in 2003
F1' factors 1.06 1.04 0.93 1.10 0.99 7DEOHVKRZVUHFRQFLOLDWLRQEHWZHHQORQJUDQJHDQGVKRUW
2003 to 2004c UDQJHPRGHOVIRUWKHWKUHHTXDUWHUV4WR4IRU,QWKLV
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Blast blocks 32.5 1.59 0.25 517 81 VWDJHH[SORUDWLRQGULOOLQJ
Ore control 32.3 1.67 0.22 538 72
polygons TABLE 7
F1" factors 0.99 1.05 0.89 1.04 0.89 Antamina Mine reconciliation between long-range and short-range models
(Quarters 1 - 3, 2003).
Copper-zinc-only ores
2001 to 2004 Mt % Cu % Zn kt cont Cu kt cont Zn
a
Long-term modela 46.7 0.98 2.94 457 1375 Copper-only ores
Blast blocks 55.4 0.96 2.66 532 1474 Long-range model 6.39 1.41 0.16 90.1 10.2
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
2003 to 2004c F1 factors 1.32 1.23 1.00 1.61 1.32
Blast blocks 22.7 1.01 2.83 229 642 Copper-zinc ores
Ore control 28.8 1.02 3.17 294 911 Long-range model 15.6 1.11 2.56 173.2 399.4
polygons Short-range model 13.5 0.95 3.06 128.3 413.1
F1" factor 1.27 1.01 1.12 1.28 1.42 F1 factors 0.87 0.86 1.20 0.74 1.03
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
7KH)IDFWRUVDUHIDUIURPXQLW\)RUWKHFRSSHURQO\RUHV
in blast blocks.
RFFXUULQJLQHQGRVNDUQVWKHWRPVSDFHGH[SORUDWLRQ
Notes: zinc grades and factors irrelevant for copper-only ores. Cont – contained.
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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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A B
C D
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 TABLE 9
Antamina Mine F1 factor reconciliation between test long-range and Antamina Mine reconciliation for 2003 to 2004.
short-range models (60 Mt).
Mt % Cu % Zn kt cont Cu kt cont Zn
Drill spacing F1 (t) F1 (% Cu) F1 (cont Cu) Copper-only ores
1% copper cut-off grade applied Long-range model 30.5 1.51 0.25 460.6 76.3
75 × 75 m spacing 0.97 1.15 1.11 depletions
50 × 50 m spacing 0.93 1.01 0.93 Short-range 32.3 1.67 0.22 539.4 71.1
50 × 25 m spacing 0.88 1.02 0.90 model depletions
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 × 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 23.9 0.96 3.04 229.4 726.6
depletions
Drill spacing F1 (t) F1 (% Zn) F1 (cont Zn)
Short-range 27.1 1.07 3.21 290.0 869.9
1% zinc cut-off grade applied model depletions
75 × 75 m spacing 1.52 1.35 2.04 Received-at-mill 27.6 1.01 2.61 278.8 720.4
2.5% zinc cut-off grade applied Notes: Zinc grades and factors irrelevant for copper-only ores. Cont – contained.
75 × 75 m spacing 3.70 0.69 2.56
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FIG 6 - Histograms for composites and resource model.
FIG 7 - Histograms for selective mining units.

PRGHOKDVDORZHUFRHIÀFLHQWRIYDULDWLRQWKDQWKH&29VIRU TABLE 11
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model
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JUDGHRIWKHUHVRXUFHPRGHO Mining costs ($/t) 2.00 1.80 1.60 1.40 1.80
7DEOH VKRZV WKH WRQQDJHV DQG DYHUDJH JUDGHV DW D Treatment costs ($/t) 25.00 25.00 25.00 25.00 25.00
JW FXWRII ZLWK DVVRFLDWHG ) IDFWRUV IRU HDFK 608 G+A costs ($/t) 3.50 3.50 3.50 3.50 3.50
ZKHQ FRPSDUHG WR WKH UHVRXUFH PRGHO 7DEOH VKRZV D Sustaining CAPEX ($/t) 0.30 0.27 0.24 0.21 0.27
FRPSDULVRQ IRU YDULRXV PLQLQJ VFHQDULRV 608 ZRXOG
Metallurgical recovery (%) 88 88 88 88 88
EH FRQVLGHUHG WKH EDVH FDVH IRU D 0WD RSHUDWLRQ ZLWK
0WD RI RUH WG ,W FDQ EH VHHQ WKDW WKHUHLVYHU\ Gold price ($/oz) 1250 1250 1250 1250 1250
OLWWOHLPSURYHPHQWLQFDVKÁRZIRUDPRUHVHOHFWLYHVFHQDULR Annual pre-tax cash flow (M $) – assumes 10 Mt/a ore + waste
608 $GGLWLRQDOO\ DW WKH FKRVHQ EDVHFDVH 0WD RUH Ore mined (Mt) 3.11 3.15 3.3 3.47 3.71
SURGXFWLRQUDWHLWPLJKWEHLPSUDFWLFDOWREHPRUHVHOHFWLYHLQ
Ore grade (g/t) 3.23 3.17 2.96 2.75 2.49
OLJKWRIQHHGLQJPRUHZRUNLQJURRPIRUVPDOOHUHTXLSPHQW
)RU608DQG608WKHHIIHFWRIGLOXWLRQDQGKLJKWUHDWPHQW Contained (Moz) 0.323 0.321 0.314 0.307 0.297
FRVWVQHJDWHVHFRQRPLHVRIVFDOHLQPLQLQJ7KHFDVKÁRZVIRU Recovery (Moz) 0.284 0.282 0.276 0.270 0.261
D SODQ EDVHG RQ WKH UHVRXUFH PRGHO DUH DERXW PLOOLRQ Revenues (M $) 355.1 352.8 345.3 338.0 326.3
\HDUOHVVWKDQWKHEDVHFDVH
Mining (M $) -20.0 -18.0 -16.0 -14.0 -18.0
TABLE 10 Treatment (M $) -77.8 -78.8 -82.5 -86.8 -92.8
Tonnages, grades and F1 factors. G+A (M $) -35.0 -35.0 -35.0 -35.0 -35.0
Results at 1.5 g/t cut-off grade (assume 100 Mt ore + waste deposit) Sustaining CAPEX (M $) -3.0 -2.7 -2.4 -2.1 -2.7
%t Mt Grade Contained Cash flow (M $) 219.4 218.3 209.4 200.1 177.8
(g/t) (Moz Au) G+A: general and administration; CAPEX: capital expense.
Composites 26.2% 26.2 4.062 3.421
7KHOHVVRQVKRXOGEHFOHDU6HOHFWLYLW\PDWWHUVSDUWLFXODUO\
SMU1 = 5 × 10 × 6 m 31.1% 31.1 3.229 3.228 ZKHUH WUHDWPHQW FRVWV DUH KLJK $Q RYHUVPRRWKHG PRGHO
SMU2 = 10 × 10 × 6 m 31.5% 31.5 3.167 3.207 GHVWUR\V YDOXH DV ZDV HORTXHQWO\ VKRZQ E\ =KDQJ
SMU3 = 15 × 15 × 10 m 33.0% 33.0 2.959 3.139 7KH VROXWLRQ VXJJHVWHG E\ =KDQJ ZDV PXOWLSOH LQGLFDWRU
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Resource model 37.1% 37.1 2.487 2.966 RUGLQDU\NULJLQJPRGHOVFDOLEUDWHGIRUPLQLQJVHOHFWLYLW\
F1 factors Tonnage Grade Contained
(g/t) (Moz Au)
CASE STUDY FOR A HYPOTHETICAL IRON ORE
Composites 0.706 1.633 1.153
DEPOSIT
SMU1 = 5 × 10 × 6 m 0.838 1.298 1.088
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SMU3 = 15 × 15 × 10 m 0.889 1.190 1.058 GLOXWLRQ$JRRGGHVFULSWLRQLVFRQWDLQHGLQ6WRQHZKR
SMU4 = 20 × 20 × 15 m 0.935 1.107 1.036 VSHQWPDQ\\HDUVFROOHFWLQJGDWDDQGGHYHORSLQJSUHGLFWLRQ
IRUPXODH )LJXUH VKRZV D VNHWFK RI GLOXWLRQ DQG RUH ORVV
Resource model 1.000 1.000 1.000 DWFRQWDFWV,IPLQLQJWHQGVWRIROORZWKHGDVKHGOLQHVERWK
FIG 8 - Grade-tonnage curves.

FIG 9 - Ore loss and contact dilution (after Stone, 1986).
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FRQWDFWDQGWKHVORSHRIWKHPLQLQJIDFH7DEOH of 45° (+ dip to east; - dip to west). Panel will be 200 m wide × 15 m high.
VKRZVWKHVLPXODWRURXWSXW Length along strike = 10 m (not relevant here). The panel width is wide
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TABLE 12
Simulator output.
TOLMIX
Run Mixing Mine face Dilution Ore loss
(TOLMIX) position (width m) (width m)
1 1 -5 4.94 0.00
2 2 -5 5.00 0.03
3 3 -5 5.37 0.27
4 4 -5 5.62 0.58
5 5 -5 6.10 1.06
6 1 -2.5 2.58 0.17
7 2 -2.5 2.89 0.46
8 3 -2.5 3.53 0.96
9 4 -2.5 4.13 1.62
10 5 -2.5 4.74 2.24
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 11 1 0 0.91 0.97
contact (points are randomly ore or waste with 50 per cent probability). 12 2 0 1.30 1.33
This can represent small-scale fluctuations in the contact surface or mixing
13 3 0 2.23 2.13
during blasting.
14 4 0 2.83 2.80
15 5 0 3.52 3.49
16 1 2.5 0.17 2.76
17 2 2.5 0.40 2.96
18 3 2.5 1.01 3.44
19 4 2.5 1.55 4.04
20 5 2.5 2.25 4.76
21 1 5 0.00 5.06
22 2 5 0.03 5.06
23 3 5 0.27 5.17
24 4 5 0.56 5.52
25 5 5 1.11 6.08
• If the shovel stops short (east) of the contact, the

distance is positive. TABLE 13
• min dilution, max ore loss. Production statistics.
• If the shovel stops beyond (west) of the contact, the
distance is negative. Mt % Fe Mt cont Fe
• max dilution, min ore loss.
Short-term model depletion 10.00 40.00 4.00
FIG 12 - Mining conventions. This figure shows the mining approach and Received-at-mill 9.75 38.00 3.71
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 F2 factor 0.975 0.950 0.926
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). WKDWKDVEHHQVXEMHFWHGWRJUHHQVFKLVWIDFLHVPHWDPRUSKLVP
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734
TABLE 14
Calculation of F2 factors for simulation runs.
Run Mixing Mine Ore Density Diluted Density Short-term Horiz From simulator Run-of-mine F2 factors Net present
face grade of ore grade of waste reserve width Dilution Ore loss Width Grade Density Mt Tonnes Grade Metal value (M $)
position (% Fe) (% Fe) (depl Mt) ore (m) (width) (width) (m) (% Fe) (t/m3)
1 1 -5 40% 3.6 0.1 2.6 10 40 4.94 0.00 44.94 37.50 3.490 10.89 1.089 0.939 1.022 1235
2 2 -5 40% 3.6 0.1 2.6 10 40 5.00 0.03 44.97 37.51 3.489 10.90 1.090 0.938 1.022 1233
3 3 -5 40% 3.6 0.1 2.6 10 40 5.37 0.27 45.10 37.33 3.481 10.90 1.090 0.933 1.017 1224
Mineral Resource and Ore Reserve Estimation

4 4 -5 40% 3.6 0.1 2.6 10 40 5.62 0.58 45.04 37.20 3.475 10.87 1.087 0.930 1.011 1215
5 5 -5 40% 3.6 0.1 2.6 10 40 6.10 1.06 45.04 36.95 3.465 10.84 1.084 0.924 1.001 1200
6 1 -2.5 40% 3.6 0.1 2.6 10 40 2.58 0.17 42.41 38.66 3.539 10.42 1.042 0.966 1.007 1256
7 2 -2.5 40% 3.6 0.1 2.6 10 40 2.89 0.46 42.43 38.50 3.532 10.41 1.041 0.962 1.002 1246
8 3 -2.5 40% 3.6 0.1 2.6 10 40 3.53 0.96 42.57 38.16 3.517 10.40 1.040 0.954 0.992 1229
9 4 -2.5 40% 3.6 0.1 2.6 10 40 4.13 1.62 42.51 37.84 3.503 10.34 1.034 0.946 0.978 1208
10 5 -2.5 40% 3.6 0.1 2.6 10 40 4.74 2.24 42.50 37.51 3.488 10.30 1.030 0.938 0.965 1188
11 1 0 40% 3.6 0.1 2.6 10 40 0.91 0.97 39.94 39.50 3.577 9.92 0.992 0.988 0.980 1257
12 2 0 40% 3.6 0.1 2.6 10 40 1.30 1.33 39.97 39.29 3.567 9.90 0.990 0.982 0.973 1245
13 3 0 40% 3.6 0.1 2.6 10 40 2.23 2.13 40.10 38.78 3.544 9.87 0.987 0.969 0.957 1217
14 4 0 40% 3.6 0.1 2.6 10 40 2.83 2.80 40.03 38.44 3.529 9.81 0.981 0.961 0.943 1196
15 5 0 40% 3.6 0.1 2.6 10 40 3.52 3.49 40.03 38.05 3.512 9.76 0.976 0.951 0.929 1173
16 1 2.5 40% 3.6 0.1 2.6 10 40 0.17 2.76 37.41 39.90 3.595 9.34 0.934 0.998 0.932 1225
17 2 2.5 40% 3.6 0.1 2.6 10 40 0.40 2.96 37.44 39.77 3.589 9.33 0.933 0.994 0.928 1218
18 3 2.5 40% 3.6 0.1 2.6 10 40 1.01 3.44 37.57 39.41 3.573 9.32 0.932 0.985 0.919 1201
19 4 2.5 40% 3.6 0.1 2.6 10 40 1.55 4.04 37.51 39.09 3.559 9.27 0.927 0.977 0.906 1181
20 5 2.5 40% 3.6 0.1 2.6 10 40 2.25 4.76 37.49 38.68 3.540 9.22 0.922 0.967 0.891 1157
21 1 5 40% 3.6 0.1 2.6 10 40 0.00 5.06 34.94 40.00 3.600 8.74 0.874 1.000 0.874 1174
22 2 5 40% 3.6 0.1 2.6 10 40 0.03 5.06 34.97 39.98 3.599 8.74 0.874 1.000 0.874 1174
23 3 5 40% 3.6 0.1 2.6 10 40 0.27 5.17 35.10 39.83 3.592 8.76 0.876 0.996 0.872 1169
24 4 5 40% 3.6 0.1 2.6 10 40 0.56 5.52 35.04 39.65 3.584 8.72 0.872 0.991 0.865 1157
25 5 5 40% 3.6 0.1 2.6 10 40 1.11 6.08 35.03 39.31 3.568 8.68 0.868 0.983 0.853 1138
Note: the case that most corresponds to production statistics is shaded (see Table 13).
TABLE 15
Net present values presented as a case matrix.
Mixing Mining face position
-5 -2.5 0 2.5 5
1 1235 1256 1257 1225 1174
2 1233 1246 1245 1218 1174
3 1224 1229 1217 1201 1169
4 1215 1208 1196 1181 1157
5 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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TABLE 16
Reconciliation for the Southwest Zone (1997).
Block model depletions and production statistics Factors for tonnage and grade Factors for contained metal and NSR
Tonnes Au Ag Pb Zn NSR Factor Tonnes Au Ag Pb Zn NSR Au Ag Pb Zb NSR
g/t g/t % % $/t g/t g/t % % $/t
Reconciliation for 1997
Block model 389 416 7.51 1328 5.55 11.13 252 F1 0.97 0.89 0.84 0.98 0.98 0.88 0.87 0.82 0.95 0.96 0.85
Grade control, 378 355 6.72 1116 5.43 10.94 222
no cut F2 1.14 0.96 0.91 0.86 0.85 0.92 1.10 1.04 0.99 0.98 1.04
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
Reconciliation for completed levels
Block model 115 836 6.21 1233 5.29 10.54 229 F1 0.93 1.10 0.93 1.04 1.04 0.99 1.03 0.87 0.97 0.97 0.93
Grade control, 108 227 6.86 1153 5.50 10.94 227
no cut F2 1.14 0.97 0.91 0.86 0.85 0.92 1.11 1.04 0.99 0.98 1.05
Received-at-mill 123 501 6.65 1052 4.75 9.35 208 F3 1.07 1.07 0.85 0.90 0.89 0.91 1.14 0.91 0.96 0.95 0.97
Reconciliation for uncompleted levels
Block model 273 580 8.06 1368.34 5.66 11.38 262 F1 0.99 0.83 0.80 0.96 0.96 0.84 0.82 0.79 0.94 0.95 0.83
Grade control, 270 127 6.65 1101.26 5.41 10.94 219
no cut F2 1.14 0.97 0.91 0.86 0.85 0.91 1.11 1.04 0.99 0.98 1.04
Received-at-mill 308 248 6.45 1004.91 4.67 9.35 201 F3 1.13 0.80 0.73 0.83 0.82 0.76 0.90 0.83 0.93 0.93 0.86
Notes: F2 factor cannot be separately determined for completed and uncompleted levels.
NSR – net smelter return/revenue.

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FIG 15 - Cumulative silver grade versus per cent completion for five random LPSURYHG IDFH VDPSOLQJ UHVXOWHG LQ DQ LPSURYHPHQW LQ WKH
sorts of the grade control distribution. Note: opt = Troy oz/st; 1 opt = 34.29 g/t. )IDFWRUV
FIG 16 - Monthly and cumulative average grades for silver, 640 and 653 levels. Note: opt = Troy oz/st; 1 opt = 34.29 g/t.

FIG 17 - Relative difference (grade control - block model) versus percentage completion for silver.
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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: rhargreaves@snowdengroup.com
2. R Hargreaves has published previous work (cited in this paper) under the name R Riske.
INTRODUCTION
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FIG 1 - Reconciliation across the mining value chain depicting a range of comparisons that commonly occur (after Morley, 2003).
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Mining Reconciliation – An Overview of Data Collection Points and Data Analysis | R Hargreaves and C Morley
TABLE 1 TABLE 2
Examples of variables that affect the reliability of reconciliation The method of reporting the tonnes and grade from the Resource model is
results (after Pitard, 2001). dependent on the actual mining method.
Variables affecting reliability of reconciliation results Reporting tonnes and grade from the resource
Geological model causes Mining causes model based on mining method
True in situ nugget effect Estimation of tonnes Mining method Reporting method
Sampling and subsampling errors Survey inaccuracies Open pit Deplete and report the resource model between two month end
pit surveys.
Analytical errors Displacement of mineralisation
boundaries upon blasting dilution Underground Survey measurements taken either on a regular interval
Definition of ore boundaries development (weekly, monthly, etc) or on the completion of the development
Estimation errors Truck dispatch inaccuracies are used to deplete and report the resource model.
Excessive rejection of outliers Loss of fines Underground The production areas can be surveyed and the surveys used to
production – deplete the resource model.
Estimation methodology issues Mining model parallel to cross
room and pillar
Ore density assumptions mineralisation in open pit
Underground Generally more hands off and not so easy to survey. A cavity
Grade control causes Mill and flotation plant causes production – measurement system (CMS) can be used but fired or trucked
In situ nugget effect Retention of metal within the mill stoping tonnes may have to be relied on until the stope is complete.
Reconciliation of the resource model is usually completed
Sampling and subsampling errors Analytical inaccuracy
on a final stope basis. In some mines, with larger stopes, it is
Analytical errors Process cycles either unknown or common for CMS surveys to be carried out after each set of rings
misunderstood are fired.
Blastholes parallel to mineralisation Calibration of weightometers and Underground In a caving situation there is generally no possibility of survey.
flowmeters production – In these instances fired or trucked tonnes can be used with
Averaging or kriging methodology issues Poor laboratory subsampling caving a resource grade calculated from the designed mining areas.
When using fired or trucked tonnes, the rule is to subtract
Ore grade contouring Reconciliation calculated over too short the surveyed development tonnes from this, to give the
a time frame production tonnage. It is important not to double account for
Survey inaccuracies the development.
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Resource model High nugget effect

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TABLE 3 DFFXUDF\ DQG EH LQFRUSRUDWHG LQ WKH LQLWLDO 5HVHUYH PRGHO
Areas to be considered when reporting the Resource model. ,QFRUUHFWEXONGHQVLW\LQWKHPRGHOZLOOUHVXOWLQSRRUWRQQDJH
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Reporting on tonnes and grade from the resource
model based on specific area Reserve models and mine schedules
Specific area Comment 7KH5HVHUYHPRGHOLVXVXDOO\FUHDWHGE\WDNLQJWKH5HVRXUFH
Backfill and Be aware of any areas that have been backfilled to ensure they are PRGHO DQG FXWWLQJ LW ZLWK PLQH GHVLJQV WR GHULYH WKH
in-pit stocks accounted as mined in the reporting. 5HVHUYH PRGHO DQG GDWD UHTXLUHG IRU SODQQLQJ VFKHGXOHV
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Surveys Always review the end of month surveys to ensure that all mined
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areas have been surveyed, particularly when working on multiple
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benches. There can be problems with merging old and new survey
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information.
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surveys cannot be used to deplete the resource model, as the VWRSHVPLQLQJ EORFNV RXWOLQHG LQ 7DEOH IRU WKH 5HVRXUFH
location of the ore in the model is wrong, but it is still important to PRGHO DUH DOVR UHOHYDQW IRU 5HVHUYH DQG SODQQLQJ PRGHOV
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zone. In these instances a cookie-cut approach needs to be used WKH5HVHUYHPRGHO
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 • +RZ KDV WKH 5HVHUYH EHHQ GHULYHG IURP WKH 5HVRXUFH"
the orebody has not been mined or additional dilution has been ,VWKH5HVHUYHDUHDOPRGHORUKDVLWEHHQGHULYHGXVLQJ
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resources whereby the tonnes and grade above the mining cut-off are DQGUHSRUWLQJRIWKH5HVHUYH
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the panel is unknown. This causes problems when only part of a
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panel is mined during the month. In these instances it is optimal
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completed each month against the resource model. By using this
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each stope and the completed stopes simply reported at month
end.
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change the meaning of the numbers. If internal dilution has been
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factor post resource modelling (not a recommended practice, but
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one that does occur) this will need to be taken into consideration
during reconciliation. RQH[SHULHQFHZLWKWKHPDFKLQHU\EHLQJXVHGDQGWKHVW\OHRI
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7KHUH DUH SUDFWLFDO OLPLWDWLRQV WR WKH VL]H RI WKH GDWDEDVH Grade control model – causes of poor reconciliation
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EHDQJOHGIRURSWLPXPLQWHUVHFWLRQZLGWKVRUDKLJKHUTXDOLW\ Mining
VDPSOHDQGPXOWLSOHEHQFKHVLQDSLWFDQEHJUDGHFRQWUROOHG
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Poor angle of intersection of drilling V\VWHP EDVHG RQ WUXFN FRXQWV RU ZHLJKWRPHWHU LQIRUPDWLRQ
:KHUHJUDGHFRQWUROVDPSOLQJXVHGEODVWKROHVWKHGULOOKROH *UDGHVTXDOLW\LQIRUPDWLRQLVQRUPDOO\DVVLJQHGWRWKLVGDWD
RULHQWDWLRQ FDQQRW EH RSWLPLVHG IRU WKH RUHERG\ ,GHDOO\ IURPWKHJUDGHFRQWUROV\VWHP0LQHGWRQQHVDQGJUDGHPD\
JUDGH FRQWURO GULOO KROHV VKRXOG EH RULHQWHG SHUSHQGLFXODU EHUHIHUUHGWRDV¶PLQHFODLPHG·RU¶PLQHGHOLYHUHG·ERWKEHLQJ
WRWKHGLSRIWKHRUHERG\9HUWLFDOEODVWKROHVDUHQRWVXLWDEOH WKH PDWHULDO GHOLYHUHG WR WKH SODQW DV PHDVXUHG E\ WKH PLQH
LQ DUHDV RI VXEYHUWLFDO PLQHUDOLVDWLRQ 7KLV PD\ EH ZRUNHG RU PLQLQJ HTXLSPHQW 6RPH DUHDV WKDW VKRXOG EH FRQVLGHUHG
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TABLE 4
Poor geological and structural knowledge The method of reporting the mined tonnes and grade is
,W LV XVXDO IRU WKH JUDGH FRQWURO JHRORJLVWV WR FDUU\ RXW dependent on external factors.
PDSSLQJERWKXQGHUJURXQGDQGLQRSHQSLWHQYLURQPHQWV
WRHQKDQFHWKHTXDOLW\RIWKHJHRORJLFDOXQGHUVWDQGLQJRQD Reporting tonnes and grade from mining production
PDFUR VFDOH 7KLV SURFHVV LV HVVHQWLDO DQG PXVW EH IHG EDFN External Consideration
LQWRERWKWKHJHRORJLFDODQGVWUXFWXUDOPRGHOVWKDWDUHXVHG factor
GXULQJWKHJUDGHFRQWURODQG5HVRXUFHHVWLPDWLRQSURFHVVHV Dispatch An automated dispatch system with GPS tracking, or in an
systems underground application waypoint data, is the ideal as it minimises
Incorrect ore boundary human error associated with collecting and data entry of tuck tallies.
7KH XVH RI DQ LQDSSURSULDWH JUDGH FXWRII IRU GHÀQLQJ RUH Any system should be routinely monitored and reviewed to check its
ERXQGDULHVFDQUHVXOWLQUHFRQFLOLDWLRQLVVXHVLIWKHRUHLVQRW accuracy as it is very common for drivers and/or dispatchers to get
KLJKO\YLVXDO7\SLFDOO\WKLVEHFRPHVDSUREOHPLIWRRKLJKD source and destination information wrong. Ideally any error picked
FXWRIIJUDGHLVXVHGDQGWKHSUHFLVLRQRIWKHDVVD\UHVXOWVLV up in the dispatch data should be corrected in the dispatch system.
QRWJRRGHQRXJKWRDFFXUDWHO\GHÀQHRUHIURPZDVWHDWWKLV Tonnes and grade delivered to the mill are typically the mined
FXWRIIJUDGH material delivered to the primary crusher.
Frequency of Surveys should be undertaken on a monthly basis as well as at the
Open pit block layout inaccuracies survey end of each bench or stope. Survey tonnes should be reconciled
7KHPRVWDFFXUDWHJUDGHFRQWUROPRGHOFDQEHPDGHREVROHWH against dispatch tonnes as a validation of the truck factors being used
LIWKHRUHEORFNVDUHQRWPDUNHGRXWSURSHUO\6XUYH\HUURUV to convert truck counts to tonnes.
KXPDQHUURUGXULQJPDUNRXWDQGPRYHPHQWRIWKHRUHGXHWR Intermediate Orepasses where intermediate material resides underground are
EODVWLQJFDQDOOOHDGWRLQFRUUHFWORFDWLRQRIWKHRUHEORFNVDQG stockpiles/ generally impossible to measure. These orepasses and any open pit
VXEVHTXHQWSRRUUHFRQFLOLDWLRQ9LVXDOFRQWURORQPLQLQJLVWKH orepasses intermediate stockpiles need to be taken into consideration during
EHVWZD\WRSUHYHQWWKHVHLVVXHV,WLVHVVHQWLDOWKDWLIRUHEORFN reconciliation as they introduce a temporal lag into the movement of
ERXQGDULHVDUHPRYHGGXULQJYLVXDOLQVSHFWLRQRIWKHEODVWRU the material. If this lag is not considered in the reconciliation process
LIJHRORJLVWVUHDVVLJQPDWHULDOWRDQDOWHUQDWLYHPDWHULDOW\SH then the results will not be comparing like with like (or ‘apples with
WKHVHFKDQJHVPDNHWKHLUZD\LQWRWKHUHFRQFLOLDWLRQSURFHVV apples’).
Moisture Moisture is a key issue in most mines and is often not measured
Database errors or inadequate data storage accurately (or not measured at all!). In tropical or high rainfall
*UDGHFRQWUROGDWDEDVHVVKRXOGEHVXEMHFWWRWKHVDPHOHYHORI environments, the change in tonnes due to moisture from in situ to
TXDOLW\DVVXUDQFHDQGTXDOLW\FRQWURODV5HVRXUFHGDWDEDVHV mined material can be significant. It is not uncommon for moisture
2IWHQ GDWD YDOLGDWLRQ DQG 4$4& LV QRW DV ULJRURXV DW WKH to be ignored during the planning process, which makes it impossible
JUDGHFRQWUROOHYHO$Q\GDWDEDVHLVVXHVZLOOUHÁHFWLQSRRU to move the tonnes planned. Moisture levels need to be regularly
SUHFLVLRQDQGXQFHUWDLQW\LQWKHJUDGHFRQWUROGDWDZKLFKLQ measured and taken into account during reconciliation. A lot of
WXUQZLOOUHVXOWLQORFDOLQDFFXUDF\LQWKHJUDGHFRQWUROPRGHO reconciliation errors are due to insufficient consideration of moisture.
DQGKHQFHSRRUUHFRQFLOLDWLRQ 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
Human errors as stockpiles if they are to be reclaimed at a later date or the ore
7KH SUHVVXUH RI SURGXFWLRQ LV RIWHQ LQWHQVH GXULQJ JUDGH written off if the practice is to send this material to waste when it is
eventually mined.
FRQWURO/DFNRIWLPHWRFDUU\RXWWDVNVWRDKLJKOHYHORITXDOLW\
FDQUHVXOWLQHUURUVLQDOOVWDJHVRIWKHJUDGHFRQWUROSURFHVV
,W LV LPSRUWDQW WR PDLQWDLQ D KLJK TXDOLW\ DQG KDYH FKHFNV
DQG EDODQFHV LQ SODFH WR PRQLWRU WKH JUDGH FRQWURO V\VWHP Open pit mining – causes of poor reconciliation
'HFLVLRQVVXFKDVEODVWLQJDQGPLQLQJDEORFNSULRUWRJUDGH
FRQWURO LQIRUPDWLRQ EHLQJ DYDLODEOH FDQ KDYH D VLJQLÀFDQW Blasting
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SODQV V\VWHPV DQG SUDFWLFHV DUH LQFRQVHTXHQWLDO LI VRPHRQH ÀQHVFDQRFFXUGXULQJEODVWLQJZLWKWKHÀQHUPDWHULDOWKURZQ
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Reporting tonnes and grade from the plant
TABLE 5
Reporting on stockpiles may be dependent on external factors. External factor Consideration
Weightometers Are the weightometers being calibrated on a regular
Reporting tonnes and grade on stockpiles
interval? What are the calibration methodologies? Are the
External factor Consideration weightometers on an incline/decline, which may impact their
Stockpile On any mine a stockpiling strategy should be in place. This accuracy? Confidence in the weightometers is paramount to
management document should clearly outline who is in control of the ensuring the balance you are using in reporting actual numbers
systems stockpiles; where they are located; how often they are zeroed; is reliable as a data source.
how frequently they are turned over, and how the movement Sampling How and where is the sampling carried out and what is the
is monitored. accuracy and precision of the sampling method? Plants are
Stockpile in the mine and located prior to the primary like a chemical equation – the sum of the inputs must equal
crusher are generally considered to be controlled by the mine the sum of the outputs. Therefore, it is important to capture
production team, while coarse ore stockpiles after the crusher samples and volumes/density of all plant outputs including
are generally considered to be part of the processing plant. oversize material, tailings and product.
Surveying It is necessary to consider the frequency of surveys. Stockpile Systems Are the mine and plant databases integrated or linked for
floors should always be surveyed when they are empty to interaction ease and flexibility of reporting? Typically the plant has an
ensure that the levels are maintained and the floor has not been independent database and often mine figures are presented to
mined (which would affect reconciliation). Compaction needs to the mill in spread sheet format. The plant is a rich source of data
be taken into account on large stockpiles when deriving tonnes but it is important to determine the quality of the data and how
from survey volumes. accurate the data sources are.
Grade modelling It is important to understand how the stockpile is being formed Stockpiles How is the movement on and off any stockpiles after the crusher
in order to know how to best model the grade. There is no (cone or coarse ore stockpile) modelled and monitored? Are
perfect method and any stockpiling will always introduce errors. there areas in the plant where material is introduced into the
Best practice is to keep stockpiles small and turn them over circuit, or in the case of mill clean-ups re-introduced, which
(that is zero them) on a frequent basis. This will reduce metal might result in double counting of some tonnes? Often these
build-up in the stockpile accounting. in-plant stocks are insufficiently surveyed or not surveyed at all.
Stockpile management – causes of poor reconciliation

Processing plant – causes of poor reconciliation
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TABLE 7
Standardised reconciliation nomenclature (Fouet et al, 2009).
Standardised reconciliation nomenclature
Section within mining Standardised reconciliation nomenclature
process
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
Reserve model to mining production
reconciliation
Reserve model to plant feed FIG 4 - The relationship between the three elements of reconciliation.
Reserve model to plant production
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production
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Time-based reconciliation REFERENCES

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A Strategy to Minimise Ore Grade

Reconciliation Problems between
the Mine and the Mill*
F F Pitard1
ABSTRACT
0DMRUGLVFUHSDQFLHVEHWZHHQPLQHHVWLPDWHVDQGHVWLPDWHVIURPSODQWPHWDOOXUJLFDOEDODQFHVDUHDFRPPRQSUREOHPLQPDQ\
JROGDQGEDVHPHWDOPLQHVDURXQGWKHZRUOG0DQ\H[LVWLQJSUDFWLFHVDUHEDVHGRQSUDFWLFDOSURWRFROVWKDWRIWHQIDOOVKRUWRI
EDVLFVWDWLVWLFDOUHTXLUHPHQWV6DPSOLQJWRROVDUHRIWHQÁDZHGE\GHVLJQDQGFDQQRWSURYLGHWKHQHHGHGUHOLDELOLW\IRUDFKLHYLQJ
DFFXUDWHRUHJUDGHDQGUHVHUYHV7KHVHSUREOHPVDUHDPSOLÀHGE\WKHQDLYHDSSOLFDWLRQRIFRUUHFWLQJIDFWRUV$QSRLQWVWUDWHJ\
LVJLYHQWRPLQLPLVHWKHVHUHFRQFLOLDWLRQSUREOHPV7KHVWUDWHJ\LVEDVHGRQDFFXUDWHVDPSOLQJFDSDEOHRISURYLGLQJUHOLDEOH
GDWDRQWKRURXJKVWDWLVWLFDOHYDOXDWLRQVLGHQWLI\LQJWKHFDXVHVRIYDULDELOLW\DQGRQDWRWDOTXDOLW\PDQDJHPHQWSKLORVRSK\
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1. President, Francis Pitard Sampling Consultants, 14800 Tejon Street, Broomfield Co 80023, USA. Email: fpsc@aol.com
* 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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control, geostatistics and total quality management
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Point 2: use ISO standards as a structural framework QRWWKH\DUHZURQJO\NHSWDVVHSDUDWHSURJUDPVKDQGOHGE\
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Point 6: do not confuse quantity of work with real

productivity
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A Strategy to Minimise Ore Grade Reconciliation Problems between the Mine and the Mill | F F Pitard
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Point 7: establish a realistic wish list for every process

FIG 4 - Illustration of an invisible cost generated by the random variability affecting
controlling parameter the tonnes per hour processed through a semi-autogenous grinding mill.
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Point 10: establish a customer and continuous process

feedback system
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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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Point 13: beware of correcting factors

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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
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FIG 9 - Implementation of a friendly, creative thinking cycle.
Mill and flotation plant causes
Point 15: a mine/mill reconciliation problem nearly
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always has multiple causes • DQDO\WLFDODFFXUDF\
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VHWSULRULWLHVWKHDXWKRUVXJJHVWVXVLQJWKHFKDUWLQ)LJXUH improve metal recovery
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• DYHUDJLQJRUNULJLQJPRGHO 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

D
invisible cost A
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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
CONCLUSION 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.
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HOME
Guide to Creating a Mine Site

Reconciliation Code of Practice
C Morley1
ABSTRACT
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INTRODUCTION
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• XOWLPDWHO\ SURGXFH D JXLGH WR UHFRQFLOLDWLRQ WKDW DOORZV truly understand our mining processes. We must map out
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map that indicates the sources of variability in the different
THE IMPORTANCE OF RECONCILIATION processes as well as the interdependency between them and
– RECONCILIATION AS A CONTINUOUS WKHLPSDFWWKH\KDYHRQWKHEXVLQHVV·SHUIRUPDQFH
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THE FOUNDATIONS FOR A RECONCILIATION CODE
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FIG 3 - Detailed example of an intersecting box on the matrix illustrated in Figure 2.
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TABLE 1 ¶1DPHRIWKHHDUOLHVWVRXUFHRIGDWD·WR¶QDPHRIWKHODWHUVRXUFHLW
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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 Transformations Comment
Grade control Grade control Daily or on an ‘as Version tracking, Calculation of contained metal Data is needed on an ore block by ore block
Model – tonnes designed’ basis peer review and basis
Material type sign off
Grades
Short-term mine Mine planning – Daily/weekly/ Version tracking, Application of specific gravity to calculate May also contain grade information
plan volume/tonnes monthly peer review and tonnes from volumes
Budget/forecast Mine planning – Monthly Version tracking, Application of specific gravity to calculate
volume/tonnes peer review and tonnes from volumes
Grade
Dispatch Operations dispatch Shift summaries Valid source and Application of truck factor to calculate Tonnes are collected via truck load cells or
system – source destinations, truck tonnes from truck counts truck counts
Destination volume validation
Material type
Truck counts
Tonnes
Stockpile surveys Survey – volume Weekly/monthly Validation against Application of specific gravity to calculate Survey may calculate tonnes using
(end of month dispatch results, tonnes from volumes volume × density
process) peer review and Surveys should include both ROM fingers and
sign off medium-grade stockpiles
Survey could include waste stockpiles as well
Crusher tonnes Plant – tonnes Shift and monthly Weightometer Monthly metallurgical balance process Weightometer measurement on crushed
summaries calibration may result in changes to previously material
procedures reported results
Head grade Mill – grades Shift and monthly Met balance Monthly metallurgical balance process
summaries may result in changes to previously
reported results

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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 Common Comments Strategies to reduce errors
range range
Grade control model ±10%b ±50%b Can vary significantly depending on the understanding of Ongoing reconciliation and review of sampling quality,
estimation methodology geology and estimation methodology chosen. density and estimation methodologies.
accuracy
Dispatch errors – <5 incorrectly 1 to 10 errors Electronic dispatch systems greatly enhance accuracy – Shift by shift review by operations and sign off.
incorrect source and coded results per dayb but only with constant monitoring and reconciliation. Errors corrected by dispatchers in the dispatch system.
destination per weekb
Truck factors ±15%b Between 15 Often empirical numbers that have not been validated for Monthly compilation of dispatch results against
and 30%b a long period of time. weightometer or survey results.
Truck load cells ±5%c ±20%c When truck load cells fail it is not uncommon for that truck Regular maintenance and calibration schedules.
to be kept in production – resulting in truck factors being
used for tonnage estimates.
Specific gravity ±5%a ±10%b Specific gravity is often an empirical number used by Routine charting of survey versus dispatch
estimations (including mining, geology, survey and dispatch to convert volumes versus weightometer data.
in situ density estimates) to tonnes. Annual specific gravity laboratory testing.
Swell factors (stockpiles) ±5%a ±10%b Includes factors used to convert in situ density to a Use of stockpile density measurement devices for
‘stockpiled’ density. On large stockpiles this can also example as described by Treasure (2006).
include some allowance for compaction of material within
the stockpile.
Loader bucket factors ±15%b Between 15 Often empirical numbers that have not been validated for Monthly compilation of dispatch results against
and 30%b a long period of time. weightometer results.
Weightometer <±5%c ±20%c Incorrectly positioned, poorly maintained and infrequently Regular maintenance and calibration schedules will
measurements calibrated weightometers will give spurious tonnage result in weightometers delivering results within their
measurements. design error tolerances.
Head grade sampling ±10%b ±20% up to Auto-samplers are notoriously difficult to design, install Appropriate installation and regular
errors 200%b and maintain. Plants with high volume of throughput maintenance of an auto-sampler.
make it almost impossible to maintain a sampling regime Reconciliation to metal produced
that is statistically appropriate. rather than head grade.
Survey volume errors ±10%b ±10%b Recent trends to use global positioning systems (GPS) for Use of surface pickup by theodolite.
survey pickup can result in lower precision of the surface Routine areal flyovers to provide calibration for survey
volume calculation. surface pick-ups.
a. Treasure (2006); b. empirical industry experience; c. Pan et al (2003).

TABLE 4 ZLOOSURYLGHFOHDUGRFXPHQWDWLRQRQZKDWLVEHLQJSURGXFHG
Example of a template for documenting the methodology and calculations E\ ZKRP DQG IRU ZKDW SXUSRVH 6XJJHVWHG VXPPDU\
carried out to derive the various reconciliation results for any given LQIRUPDWLRQLQFOXGHV
reconciliation relationship (modified after Fouet et al, 2009). • SXUSRVHRIWKHUHSRUW
• IUHTXHQF\RIUHSRUWLQJ
Name Mining production to plant feed
• UROH DQG GHSDUWPHQW UHVSRQVLEOH IRU JHQHUDWLQJ DQG
Data required Mine production: dispatch data for material leaving the pit corrected LVVXLQJWKHUHSRUW
using survey data.
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Supervisory control and data acquisition (SCADA) systems for the
plant production data and laboratory information management
system (LIMS) sampling results. Accountability
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Frequency Monthly.
RI ZKR LV UHVSRQVLEOH IRU WKH SURFHVVHV WKH FRGH GHVFULEHV
Calculation Tonnes = plant feed / mining production. %OXFKHUSRLQWVRXWWKDW
Grade = plant feed sampled grades / mining production grades
… the practical implementation of a robust reconciliation
(estimated or sampled).
process must be focused through as few people as practical
Purpose Provides a measure of the effectiveness of estimates of actual (preferably one person or a single position) in order for the
mining from direct feed ore sources (pit and/or underground) plus system to produce information in a timely and consistent
stockpiles, to material. IDVKLRQ*LYHQWKLVYLHZLWLVLPSRUWDQWWKDWDOOVXSSOLHUV
Comments Temporal reconciliation. of information to the system accept that they are also
This factor will highlight issues with truck factors or weightometer VKDUHKROGHUV LQ WKH ZKROH SURFHVV )DLOXUH E\ WKH NH\
calibrations. stakeholders to accept this premise of ownership eventually
Stockpiling effects reconciliation due to the impact on the material leads to a partisan approach to resolving issues and a
that ultimately reaches the mill. Reclaimed material must be fragmentation of the whole process. Conversely cooperative
included with direct tip material when reconciling material delivered ownership of the system will mean that information derived
to the mill verses what the mill received. IURPRQHSDUWRIWKHSURFHVVFDQEHQHÀWRWKHUSDUWVRUPD\
SUHHPSWLVVXHVJURZLQJGLVSURSRUWLRQDWHO\LQLPSRUWDQFH
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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 author’s intent is to illustrate the general layout described in the text.)

TABLE 5 • WKHSULQFLSDOJRDORIDUHFRQFLOLDWLRQV\VWHPLVWRHQDEOHWKH
Types of reports being produced by the reconciliation system RQJRLQJRSWLPLVDWLRQRIDOOWKHNH\SDUWVRIDQRSHUDWLRQ
at Telfer (Riske et al, 2007). OHDGLQJWRWKHEHVWSRVVLEOHXWLOLVDWLRQRIWKHUHVRXUFHVRQ
ZKLFKLWLVEDVHG
Report type Description • DOO SDUWLFLSDQWV LQSXW SURYLGHUV DQG RXWSXW UHFLSLHQWV
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• VWDNHKROGHUVLQWKHV\VWHPPXVWDFFHSWWKDWWKH\DUHSDUW
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Tonnage comparisons by: Trucking
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The Resource and Modelling Classification Legal, Environmental, Estimation, Grade Control,
Database and Reporting Social and Government) Classification Production and
and Reporting Reconciliation
Chapter 9 | Classif ication and Reporting

Overview – Classification and Reporting J Coombes, G Fahey and P T Stoker 767
Issues in Capital Raisings and Disclosure B Dodd 771
Review of 2012 JORC Code and Comparison with National Instrument 43-101 P R Stephenson and P T Stoker 779
Estimating and Reporting Potential Mineralisation at BHP Billiton – The Unconstrained View M Mullins, P Hodkiewicz, 791
J McCluskey, C Carey and J Terry
Mineral Resource Classification – It’s Time to Shoot the ‘Spotted Dog’! P R Stephenson, A Allman, 799
D P Carville, P T Stoker, P Mokos,
J Tyrrell and T Burrows
Reporting and Converting Resources to Reserves – How Confident Are We? M A Noppé 805
Mine Design Stages in Russia A Tverdov and S Nikishichev 815
Resource and Reserve Valuation Practices in Countries Forming the Russian Commonwealth of H Arden and A Tverdov 825
Independent States
Rio Tinto Mineral Resource and Ore Reserve Governance S J Hunt and C S Eldridge 835
Liability Issues Arising in Relation to Exploration, Mineral Resource and Ore Reserve Reports Included in F Gardiner-Hill 839
Takeover Documents
Liability of Competent Person for JORC Reports K Livesley 843
Competent Persons – Beyond JORC Code Requirements J Coombes 849

HOME
Overview – Classification and

Reporting
J Coombes1, G Fahey2 and P T Stoker3
ABSTRACT
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2. FAusIMM, Director, CSA Global, 2/3 Ord Street, West Perth WA 6005. Email: gerry.fahey@csaglobal.com
3. HonFAusIMM(CP), Principal Geologist, AMC Consultants Pty Ltd, Level 21, 179 Turbot Street, Brisbane Qld 4000. Email: pstoker@amcconsultants.com
INTRODUCTION
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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/- ivy.chen@asic.gov.au
* This paper was previously published in Proceedings International Mine Management Conference 2012, pp 3-14 (The Australasian Institute of Mining and Metallurgy: Melbourne).
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Review of 2012 JORC Code

and Comparison with
National Instrument 43-101*
P R Stephenson1 and P T Stoker2
ABSTRACT
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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.
Email: pstephenson@amcconsultants.com
2. HonFAusIMM(CP), Principal Geologist, AMC Consultants Pty Ltd, Level 21, 179 Turbot Street, Brisbane Qld 4000. Email: pstoker@amcconsultants.com
* 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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FIG 1 - Reporting system, Canada.
TABLE 1
NI 43-101 throughout mineral project development (simplified).
General Defined stages in Resource and Reserve categories Other information Relevant documents
mineral project NI43-101
development Disclosure permitted Disclosure prohibited NI43-101 and Guidelines
stages CP parts
Acquisition of Historic estimates
None All 2.4
tenements (if applicable)
Exploration Early exploration Potential quantity and grade
property expressed as ranges CIM exploration best
None All 2.3(2), 3.1, 3.2, 3.3
Ņ practice
exploration information
Concept / Ņ Preliminary economic 2.3(3), 3.1, 3.2, 3.4
Measured, Indicated
Scoping Preliminary economic Mineral Reserves analysis of Mineral CP 1.1 (4)
and Inferred Resources
assessment Resources
Pre-Feasibility Ņ Underground mining
Preliminary Feasibility method or pit configuration Ń
Study / mineral processing method CIM estimation of
Ń Mineral Resources
Feasibility Ņ Measured, Indicated Ń Detailed mine plan, social,
Ń and Mineral Reserves
Feasibility Study and Inferred Resources Inferred Resources in environmental and financial
2.3(1), 3.1, 3.2, 3.4 best practice
/ Proven and Probable economic evaluations studies
Ņ Ņ
Construction Ņ Reserves Ņ See items 16 to 22
Development property Ņ of form 43-101F1
Production Ņ See items 16 to 22
Production property of form 43-101F1
Closure

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Organisations
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Competent Person
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FIG 2 - Reporting system, Australia.

TABLE 2
Main differences between reporting systems in Canada and Australia.
Canada Australia
Technical report Requirement to publicly lodge a technical report to No requirement to publicly lodge a technical report; however, where Exploration
support certain technical/scientific disclosure on Results, Mineral Resources or Ore Reserves for a significant project are being reported
mineral deposits 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
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 May not, with certain exceptions, be used in economic May be used in Scoping Studies with an appropriate warning. May not be used to
studies support detailed planning in Pre-Feasibility or Feasibility Studies
Aggregation of resources Inferred may not be aggregated with Measured and Inferred may be aggregated with Measured and Indicated
Indicated
Qualified / Competent Person At least five years’ experience, and experience relevant At least five years’ experience relevant to the particular situation
experience to the particular situation
Qualified / Competent Person More extensive and wide-ranging than for Australia
responsibility
Technical report &3FDUHIXOO\WRHQVXUHWKDWWKH\DUHIDPLOLDUZLWKDOO

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TABLE 3
NI 43-101 technical report triggers.
Obligation to file a technical report triggers (NI43-101 part 4) When an independent technical report
is required (NI43-101 Part 5.3)
Event More information Producing issuers Other issuers
(NI43-101 Part 1.1)
Becoming a reporting issuer NI43-101 part 4.1 8 9
Provincial/Territory Securities Acts if the issuer trades on
a specified exchange
Filing a preliminary prospectus NI43-101 part 4.2 (1)(a) NI44-101 8 9
Filing a short form prospectus NI43-101 part 4.2 (1)(b) NI44-101 8 Conditional
Filing information or proxy circular concerning acquisition of a mineral property, if NI43-101 part 4.2 (1)(c) 8 Conditional
issuing shares
Filing an offering memorandum NI43-101 part 4.2 (1)(d) 8 Conditional
For a producing issuer, filing a rights offering circular NI43-101 part 4.2 (1)(e) NI45-101 part 1.1 8 Conditional
Filing an annual information form (AIF) NI43-101 part 4.2 (1)(f) NI51-102 part 1.1 8 Conditional
Filing a valuation required by securities legislation NI43-101 part 4.2 (1)(g) 8 9
Filing an offering document relating to Toronto Stock Exchange Venture Exchange policy NI43-101 part 4.2 (1)(h) 8 Conditional
Filing a takeover bid circular NI43-101 part 4.2 (1)(i) 8 Conditional
Any written disclosure other than the above that discloses either for the first time, or NI43-101 part 4.2 (1)(j) 8 Conditional
as material changes in, Mineral Resources, Mineral Reserves or the results of a PEA
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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MINERAL RESOURCE AND

ORE RESERVE ESTIMATION

MINERAL RESOURCE AND ORE RESERVE ESTIMATION

The AusIMM is not responsible as a body for the facts

FRONT COVER IMAGES

Chapter 1 | An Overview and Outline

Managing Risk in Feasibility Studies P L McCarthy 13

Common Sense and Good Communication – Effective Team-Based J Vann, P R Stephenson, 19

Chapter 2 | The Resource Database

6DPSOLQJDQG$QDO\VLV3URWRFROVDQG7KHLU5ROHLQ0LQHUDO S Roden and T Smith 53

Geological Data Collection for Reliable Coal Resource Estimation D R Green 61

$5HYLHZRIWKH5HOLDELOLW\DQG9DOLGLW\RI3RUWDEOH;5D\ M F Gazley and L A Fisher 69

Collection of Geotechnical Data from Drill Holes A van As 109

8VHDQG$EXVHRI2ULHQWHG'ULOO&RUH B K Davis 121

Chapter 3 | Geological Interpretation and Geological Modelling

*HRORJLFDO,QWHUSUHWDWLRQIRU5HVRXUFH0RGHOOLQJDQG(VWLPDWLRQ J H Duke and P J Hanna 145

$&KHFNOLVWIRU*UDGH&RQWURO H Hoogvliet, A Grieve and 189

&DOFXODWHG0LQHUDORJ\DQG,WV$SSOLFDWLRQV S Halley 199

¶;5D\3OXQJH3URMHFWLRQ·²8QGHUVWDQGLQJ6WUXFWXUDO*HRORJ\IURP E J Cowan 207

3UDFWLFDO,PSOLFLW'\NH0RGHOOLQJIRU5HVRXUFH(VWLPDWLRQ²1HZPRQW D J Haddow and E J Cowan 221

:LUHIUDPH)UHH*HRORJLFDO0RGHOOLQJ²$Q2[\PRURQRUD9DOXH E J Cowan, K J Spragg and 247

Chapter 4 | Mineral Resource Estimation

0LQHUDO5HVRXUFH(VWLPDWLRQRIWKH%URFNPDQ,URQ2UH'HSRVLWLQ B Sommerville, C Boyle, 277

0XOWLYDULDWH,URQ2UH'HSRVLW5HVRXUFH(VWLPDWLRQ²$3UDFWLWLRQHU·V C De-Vitry, J Vann and 287

7URSLFDQD*ROG0LQH:HVWHUQ$XVWUDOLD²$&DVH6WXG\RI M Kent, B Catto, M Doyle, 301

0LQHUDO6DQGV²6RPH$VSHFWVRI(YDOXDWLRQ5HVRXUFH(VWLPDWLRQDQG G Jones, B Gibson and 319

$3UDFWLWLRQHU·V*XLGHWRWKH,GHQWLÀFDWLRQ&ODVVLÀFDWLRQDQG K B Preston 329

$3UDFWLWLRQHU·V*XLGHWR5HFRYHUDEOH5HVRXUFH(VWLPDWLRQ8VLQJ O Rondon and A Trueman 341

5HVRXUFH(VWLPDWLRQLQ)ROGHG'HSRVLWV²$5HYLHZRI3UDFWLFHDQG I Glacken, P Blackney, D Gray 351

Drilling of Mineral Resources – Towards Better Investment Decisions 1$6FKRÀHOG 363

7KH,QÁXHQFHRI*HRWHFKQLFDODQG*URXQGZDWHU)DFWRUVRQ2UH T D Sullivan 385

Selecting a Mining Method for Metalliferous Orebodies F Kaesehagen 401

7UDQVLWLRQIURP2SHQ3LWWR8QGHUJURXQG0LQLQJ I T Ross 409

0LQLQJ'LOXWLRQDQG/RVVHVLQ8QGHUJURXQG0LQLQJ P L McCarthy 415

7KH$VVHVVPHQWDQG0DQDJHPHQWRI&RDO5HFRYHU\LQ2SHQ3LW0LQHV A Scott 419

0HWDOOXUJLFDO,QSXWWRWKH'HWHUPLQDWLRQRI2UH5HVHUYHV P J Lewis 433

Geometallurgical Guidelines for Miners, Geologists and Process D David 443

$VVHVVPHQWRI,URQ2UH5HVHUYHV²5LR7LQWR·V3LOEDUD([SHULHQFH G Danckert and L Fouché 451

Case Study – Marketing of Industrial Minerals – Iluka Resources V E Hugo 457

,QIUDVWUXFWXUHIRU0LQLQJ'HYHORSPHQWV F Blatt 473

7KH,QÁXHQFHRI5HYHQXHDQG&RVW)DFWRUVRQ2UH5HVHUYH(VWLPDWLRQ R P Watkins 479

Environmental Constraints on Resource-to-Reserve Conversion M Ridd, P Eaglen and 487

&RPPXQLW\&RQVXOWDWLRQ²7KH2N7HGL([SHULHQFH M Werror 493

Chapter 6 | Ore Reserve Estimation

)HDVLELOLW\6WXGLHV²6FRSHDQG$FFXUDF\ M E White and I Harrington 507

5HÁHFWLRQVRQ)URQW(QG/RDGLQJLQ0LQH3URMHFW'HYHORSPHQW J H Shillabeer 519

:KLWWOH2SWLPLVDWLRQ²7KH0RQH\0LQLQJ0HWKRGRORJ\DQG,WV G Whittle 525

0D[LPLVLQJWKH9DOXHRI2SHQ3LW*ROG5HVHUYHV²:KHUH$UH:H S Butel and A Ferrier 529

%ORFN&DYLQJ6RIWZDUH²3UDFWLFDO$SSOLFDWLRQV J-A Dudley 535

*HRWHFKQLFDO0RGLI\LQJ)DFWRUVWR%H&RQVLGHUHG:KHQ'HWHUPLQLQJ R W Seedsman 557

Evaluating Resource Risk – The Due Diligence Process S Dunham 579

7KH,PSRUWDQFHRI8QGHUVWDQGLQJ8QFHUWDLQW\DQG5LVN$VVRFLDWHG M Berry 585

6FHQDULR7KLQNLQJ²$3RZHUIXO7RROIRU6WUDWHJLF3ODQQLQJDQG J Vann, S Jackson, A Bye, 593

1RQ7HFKQLFDO5LVNVDQG7KHLU,PSDFWRQWKH0LQLQJ,QGXVWU\ A Trench, D Packey and 605

([SRVLQJ8QFHUWDLQW\LQ6FKHGXOHVIRU3URDFWLYH6WRFNSLOH3ODQQLQJ J Coombes, C Standing, 619

5HVHUYHV5HVHUYHVDQGQRWD7RQQHWR0LQH²$6WXG\RI5HVHUYHV M Creech 627

Chapter 8 | Monitoring and Exploiting the Reserve

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Effective Grade Control Systems S Rose and G Fahey 679

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3ODQQLQJ6WUDWHJLHVWR,QFUHDVH3URMHFW9DOXH T Elkington 701

,QWHUSUHWLQJ/RQJ7HUP0LQHWR0LOO7UHQGVDW6W,YHV*ROG0LQH J Donaldson, C Ferguson and 707

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$5HYLHZRIWKH5HOLDELOLW\DQG9DOLGLW\RI3RUWDEOH;5D\ M F Gazley and L A Fisher 69

¶;5D\3OXQJH3URMHFWLRQ·²8QGHUVWDQGLQJ6WUXFWXUDO*HRORJ\IURP E J Cowan 207

:LUHIUDPH)UHH*HRORJLFDO0RGHOOLQJ²$Q2[\PRURQRUD9DOXH E J Cowan, K J Spragg and 247

0LQHUDO5HVRXUFH(VWLPDWLRQRIWKH%URFNPDQ,URQ2UH'HSRVLWLQ B Sommerville, C Boyle, 277

7URSLFDQD*ROG0LQH:HVWHUQ$XVWUDOLD²$&DVH6WXG\RI M Kent, B Catto, M Doyle, 301

0LQHUDO6DQGV²6RPH$VSHFWVRI(YDOXDWLRQ5HVRXUFH(VWLPDWLRQDQG G Jones, B Gibson and 319

$3UDFWLWLRQHU·V*XLGHWRWKH,GHQWLÀFDWLRQ&ODVVLÀFDWLRQDQG K B Preston 329

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5HÁHFWLRQVRQ)URQW(QG/RDGLQJLQ0LQH3URMHFW'HYHORSPHQW J H Shillabeer 519

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,QWHUSUHWLQJ/RQJ7HUP0LQHWR0LOO7UHQGVDW6W,YHV*ROG0LQH J Donaldson, C Ferguson and 707

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