Fourth International Mining

Geology Conference

14- 17Mq2000
Coolum, Queensland

The Aurtrolosion Institute of Mining and Metallurgy

Publitotion Series No 3/2000

Published by

THE AUSTRALASIAN INSTITUTE OF MINING AND METALLURGY

Level 3, IS - 31 Pelhom Street, Corlton Victorio 3053 Austrolio
 0 The Australasion Institute of Mining and Metallurgy 2000

The Institute is not responsible as o body for the facts and opinions advanced in any of its publications.

ISBN 1 875776 75 3

Desktop published by:

Penelope Griffiths and Angie Spry for The Australasion Institute of Mining and Metallurgy

Printed by:
RossCo Print
Factory 4/188 Plenty Rood
Preston South Vic 3072
 Organising Commiitee
Andrew Vigar (Chairman)

Robin Vigar

Mark Berry

Ron Cunneen

Roussos Dimitrakopoulos
I

Ian Kelso

Foy Leckie

Kevin Lines

Brice Mutton

Graham Pope

Andrew Scott

Andrew Waltho

AuslMM Central Services

Miriam Way (Events Manager)

Pauline Weaver (Events Assistant)

Penelope Gr'fiths (Publications Manager)

Angie Spry (Publications Assistant)

iV
 The Australasian Institute of Mining and Metallurgy and the
Australian Institute of Geoscientists
gratefully acknowledge the generous contributions of the
following sponsors and exhibitors.

Sponsors

Newcrest Mining Limited Mincom WMC Limited

Crandon Services Pty Ltd Metech Pty Ltd

CSIRO - Micromine Pty Ltd
Minescale Geophysics Group WMC Fertilizers
Drill Technics Pty Ltd Scint rex/AusI og
ECS International Pty Ltd yesresources.com
Maptek Pty Ltd Surpac Software International

GYMPIE GOLD LIMITED

Hatch
Centre for Ore Deposit Research
Australian Laboratory Services P/L
AuslMM Network

Official Publication
vi
 Foreword
We all appreciate the current difficult conditions within the global mining industry and the great
efforts being made within Australia, in particular, to compete. I believe we can be justifiably proud
of the high standards of the professionals within our industry. Conferences like the Fourth
International Mining Geology Conference, organised by the bodies that represent the professionals
within the industry, are one of the keys to continuing professional education and maintaining this
edge.

This Conference follows on from successful events staged at Launceston in 1997, Kalgoorlie in
1993 and Mt Isa, Queensland in 1990. It represents one of the few events in Australia aimed
directly at mining geologists and has been designed to review the advances in knowledge since the
first conference ten years ago. A joint committee drawn from members of The Australasian
Institute of Mining and Metallurgy and the Australian Institute of Geoscientists in Southern
Queensland was formed to organise this conference.

We believe that this is the premier forum for mine geologists from throughout Australia and
overseas to meet and exchange information and ideas on their operations and the latest
developments and innovations in key areas that directly impact on their day-to-day work. We hope
that the proceedings, together with the hands-on discussions with the presenters and the forum
session, will provide new insights to challenge the way we all do business, both now and in the
future.

The organisation of a major event such as the Fourth International Mining Geology Conference
requires the support of a large group of people. I would like to take this opportunity to thank
everyone who has helped on the organising committee, for without their dedication and enthusiasm
the conference could not have taken place.

On behalf of the organising committee, I would like to thank the authors of all technical papers,
and their companies, for their excellent and thought provoking contributions. Presentations are the
core of a conference and the quality of the contributions to this conference is the equal of in the
past.

Finally I would like to acknowledge the contribution provided by industry organisations and
companies throughout Australia and overseas, for sponsorship, a stimulating trade exhibition and
for supporting delegates to attend this conference.

At the dawn of the new Millennium, the mining industry continues to maintain its critical
importance to the health and well-being of our planet and all its inhabitants. Mine geologists
continue to sit at the forefront of innovation and improvement in the industry and add to their
community as a whole. We hope that this event, and these proceedings, helps in your endeavours.

Andrew J Vigar
Conference Committee Chairman
 ...
Ylll
 Contents
Role of the Mine Geolosist

The Mine Geologist in a Business Perspective D Head 3

Dynamic Links Between Geology and the Mining Process T C McCuaig, J Vann and 9
C Seymour

Sampling and Databases

Systems und Protocols of Geological Information Management at TelfEr R D Carlson, G R Howard 21

Gold Mine. Western Australia and G Back

Technical Data Management at Porgera A W Burgess, J R Foley, 27

R J Henham and
A G Shellshear

Sampling Practice ut the Vera Nancy Gold Mine D Sims 35

Leachwell Versus Fire A s s q : Comments from Assay Quality Assurance D J Elder 43

ut Turmoola Gold Mine

Mine Geology

Controls on High-Grade Gold Distribution at Vera Nancy Mine D Sims 55

Geologicul Modelling and Grade Control in a Narrow Vein, High-Grade D Sims 65

Gold Mine

Mine Geology Pructices at the Sunrise Open Pit E Haren and P Williams 77

The Spatial Distribution of Crude J R Vearncombe and 87

S Vearncombe

The Bunyip Lateritic NickeCCobalt Deposit, Cawse Nickel-Cobalt A Bywater and S M Denn 95
Operations, Kalgoorlie, Western Australia

Cadia Hill Gold Mine - One Year Down the Track C F Moorhead and 105
Cadia Geology Team

The Geitu and Kukulurna Mineralised Trends, Lake Victoria Goldfield, D Bansah, R Chase, 115
Tunzania - Orehody Characteristics and Project Pluming A Davidson, H Michael,
M Skead and H Stuart

Kunwarura Mugnesite Deposit S Wilcock 129

I Current Geological Understanding of Teyer Gold Mine G R Howard. T Hansen, I35
C Moore, P J Moffitt,
R J Inglis, R D Carlson,
I Kirchner, D Coupland.
S Leary and A Tomsett

Geology and Structure of the Morning Star Mine, Mt Magnet. WA R Mason, N Archibald. 143
D Holden, T Blyth.
S Huffadine, R Bradey,
A Jones and P Androvich

Resource and Reserves

The 1999 JORC Code - What Does it Mean for Today’s Mining P R Stephenson 157
Geologist?

Resource Evaluation of Nuggety Slate-Hosted Gold-Quartz ReeJy S C Dominy, B W Cuffley, 169

G F Johansen, A E Annels
and I M Platten

Multiple Indicator Kriging - Is it Suited to My Deposit? J Vann, D Guibal and 187

M Harley

Mining Bench Height Evaluation for the Wallaby Resource - I M Glacken, M Noppe and 195
A Conditional Simulation Case Study M Titley

Ore Definition at the Henty Gold Mine Tasmania N Schofield 207

Computer-Based Resource Estimation in Accordance with the J Duke and P Hanna 21 5

I999 JORC Code

Grade Control

Mining Grade Control - Past, Present and Future W J Shaw 223

Evolution of Grade Control at KCGM V M O’Brien and T Cutts 229

The Use of Magnesium Oxide and Iron to Predict Host Units in Grade W J Bollenhagen 239
Control and Exploration at Bulong Nickel Operation

Ore Characterisation for Mine to Mill Fragmentation A Scott, J Segui and 247
S Kanchibotla

Upgrade Ability and Geology of Cawse Nickel Ore S M Denn, C G Ferguson 255
and S L Makin

The Interaction Between Geology, Mining and MetallurgV at Stawell D Fredericksen 263
I Gold Mines Pty Ltd

X
 Geotechnical and Structural

The Regional Controls Exerted on Rock Discontinirities at the Iron Duke C N Winsor 27 1
Deposit, South Austrulia and Extrapolation Throughout the Rock Mass

Pasniinco Century Mine Open Pit Slope Design - A Geotechnical A J Dutton 283 ,
Perspective I

Modellrng Bulk Density - The Importance of Getting it Right I T Lipton 29 1

New Technoloaies

The Expanding Role of Mine Geophysics P K Fullagar 30 1

Detailed Orebody Mapping Using Borehole Radar A Wellington, G Turner, 315

I Mason and J Hargreaves

Applicution of the SIROLOG Downhole Geophysical Tool at Callide W Nichols 32 1

Coaljields - East Central Queensland

Microseismic Monitoring of Shear Zones and Related Seismic Activity at A J Morley, J M Murray 33 1
Broken Hill and G C Reed

Finding More Ore, Further From the Drill Hole, With DHMMR J Bishop and R Lewis 337

Nuclear Borehole Logging Techniques Developed by CSIRO Exploration M Borsaru and 347
and Mining,for the MetalliJerous Mining Industry J Charbucinski

XI
nii
Role of the Mine Geologist
The Mine Geologist in a Business Perspective
D Head’
ABSTRACT
Tlie tole of the inine geologist i n a business perspective is self-evident to
sonic. hut to others i t may be a new concept. All mine geologists need to
know exactly how they add value to the business if they are to he
successful. Alternatively. if they do not add value. then they w i l l become
redundant
This paper seeks 10 understand sonic of the contributing problerns that
hindcr the mine geologist from operating in a business perspective. In
doing so. :I new context (for some) is proposed to aid the niinc geologist
:ind the operation gain greater v:ilue froin geology. The proposal suggests
liow to ensure that the activitics of our geologists are intrinsically linked
to the business process that we are involved in.
The mine geologist can and iiiust play a pivotal role in the succcss of
an operation. To do this. they must understand some principles of
business such as:
I. process.
2. custonicI/s~pplierrelationships. and
3 organisational structure
Our geologists inust know the business objectives. understand the
product that the custoiner needs and use their geological skills to deliver
the product safely. on tiiiir :ind to specification.
A s geologists. we can be instrumental in ensuring that the operational
environirient is structured in such a w’ay that maxinium value is rcalised.
not only froin the mine geologists but the cntire site team.
I n doing so, iiiine geologists will realisc their full potential in
delivering the outconics the husiness tlernnnd. and therefore be
recogtiiuxl as strong contributors to business success.
INTRODUCTION
Mine geology is an intrinsic component of the mining process.
There ;ire few operations that cannot benefit from the input of
carefully considered and applied geology. From the relatively
simplc massive coal scams of Victorias’ Latrobc Valley, to some
of the complex and narrow gold orebodies of the Yilgarn of
Western Australia. each operation will benefit from focussed
mine geology, driven by a business perspective.
The notion of ;I mine geologist in a business perspective seems
intuitive, however. stopping to clarify what is meant by the
concept, one rcaliscs how dillicult i t is to deline. I t is therefore a
worthwhile exercise to consider some of the problems that the
mine geologist is often faced with in trying to operate in a
business perspective.
Problems such ;IS:
having to operate in an environment that has not clearly
defined the process and stated the outcomes that the
operation expects from its geologists;
poor communication between departments for effective
information flow: ;ind
suboptim;il site departmental structure.
These are some of the key problems facing mine geologists.
The author wishes to slate that the ideas expressed in this
paper have developed over many years. They incorporate
concepts hased primarily on personal experience that has been
developed ;IS ;I result of in-house training at various operations
and mmy hours of discussion with colleagues. They therefore
retlect the authors’ personal opinion.
I. tMAuslMM. Gcncr:d Manager Resource Development. Normandy
Y;indal. 100 I-lutt Street. Adelaide SA 5000
4th International Mining Geology Conference Coolum. Old. 14 -
On reflection, the concept of a business perspective for a mine
geologist assumes that mine geology is part of a ‘process’. A
process is a system that combines a range of inputs, and converts
them into outputs or outcomes. For the mine geologist. the
‘process’ refers to that of mining. Discovering, estimating and
adding value, so that the metal, mineral or compound can be
mined and processed to supply a product to a customer that can
be assumed to generate wealth.
In many ways, this process is nothing more than a glorified
factory. We take raw materials, process them and market a
product.
Now, I appreciate that some will take offence at this analogy,
however, it is a useful one to consider, because it allows us to
visualise the process in a different perspective and enables us to
define the mine geologist’s role in the process.
The issues to be addressed in this paper are:
to understand the process;
to determine who the customers and suppliers are; and
to know how to structure our relationships and communicate
effectively within them.
We can then ensure that we maximise our geological skills in
order to deliver the product our customer demands. That is, to
operate in ‘a business perspective’.
To begin, try to visualise the activities of the mine geologist in
terms of this context. We must ask ourselves, ‘What are the
critical relationships that are needed for the mine geologist to be
effective in the proce ’ ‘Who are the customers‘?’ ‘What do
they want and when?’
We will also need to review how the organisational Structure of
a site can either support or hinder the success of the mine
geologist in fulfilling the expectations of the business.
Finally, this paper looks at two areas where an improved
understanding of the process, with better customer focus and
more effective relationships can assist the mine geologist in their
role. Firstly, in grade control and then, how an integrated process
for estimating Resources and Reserves is established across a
husiness.
Essentially, this paper deals with change. Recognising that
there are alternative and often-improved ways of operating is
important. How to get there is far more dillicult. Managing the
change process will be more effective if i t is driven from within
and I hope that as mine geologists we can be part of that change
process.
THE PROCESS
Most mining operations have traditional departments based on
professional skills. These departments (engineering, geology,
accounting, and metallurgy) exist to support the process and the
business and they do, to a certain degree. Generally, they fullill
their part of the process as a ‘professional silo’ where each silo
does its best to support the business. Of course, the underlying
‘process’ docs not recognisc arbitrary silos because the process
requires a seamless flow of knowledge. materials and
information through lime to deliver a product. The process
‘expects’ co-operation and teamwork, but ironically, sometimes
the professional silo inadvertently hinders the ‘flow of the
process’. Poor structure, poor communication or both can
cornpound the ‘hindering‘ effect
17 May 2000 3
 In a mine; many people visuulise the process of mining
differently and this is an important point. If we all visualisc a
different process for thc one site, how will we work as ;I team
and maintain a business perspective?
Each department nianager is likely to have his or her own
I
vision of the process. The following section examines three
generalised models based on personal experience.
Model 1 ‘Centralist’
Model one is what is referred to as the ‘centralist’ model. The
primary understanding of this model and those who work by it. is
that the department i n question sees itself ;IS the centre of the
process and that all other departments provide inputs to it. Figure
I illustrates this.
In this model. Ikpartment ‘A’ is Iarscr than all the others and
is clearly the most ‘important’. The department seems to be more
important than the customer is!
Model 2 ‘Linear’
In model two. departments are xranged linearly (I:igurc 2 ) . The
departments accept that there IS some ‘flow’ to the process, hut
resist ‘mixing’ s o as to ensure the longevity x i d security 01‘ each
department (silo) h s e d on personal experience, this seems to be
the f:ivoured model by most Australian mining operations :IS i t
appears to be most common

4I - Product
I !
I .- -. . - -. .~ .

Flci 2 - Schenntic rcprcsentntion of thc ‘Linear’ Model.

Model 3 ‘Functional ‘Teams’

FK;I - Schcrnntic rcpresentation of the ‘centralist Model’
The preferred model (three) suggests that functional teams and
not departments carry out the steps or stages of the process.
Functional teams will contain a blend of skilled professionals,
organiscd so ;IS to maximise their involvement in the process to
ensure that the product is delivered on specilication and meets
the quality and timeliness requirements. It is possible that the
‘team’ may become a silo in this model, however, this is less
likely because the emphasis is on the team rather than a
professional department. The issue with this model (for the
‘siloists’) is that the professional identity can be lost. Individual
identities as part of a department may be lost, but a new identity
as part of an effective team should be gained.
Figure 3 illustratcs how i t may look.

On Site

TIME

*
Exploration
*
Planning
*
Mining
*
Metallurgy

RECONCILIATION

* Geological input Required

FIG3 . Schcmatic representation of how the ‘Functional Team’ approach may look

4 Cooturn. Old, 14 - 17 May 2000 4th International Mining Geology Conference

 THF: MINE GEOLOGIST IN A BUSINESS I’ERSPECTIVE

11‘ we ;iccept that this is how the underlying process is working,
then a s mine geologists we can begin to understand where we
can fit into the process. What information do we need i n order to
deliver a product th:it o u r customer requires? Who iire our
customers’! And what relationships do we require in order to
perform i n ;I business perspective’!
CUSTOMEWSUPPLIER RELATIONSHIPS
Undcrstariding the concept of ;I custorner/supplicr relationship is
critical in the succcss 0 1 a business. I t seems that this is often an
m ; i that is poorly managed and understood, particularly by mine
geologists. There is often ;I perception amongst mine geologists
that operations carry out geological activities simply because
they must. An opposing view is to ask. ‘why d o operations carry
out geological activities?’ The ;inswcr is that, someone w;iIits to
be supplied with geological information. Someone has valued the
information and tleemcd that i t shall be part of the process.
In the event that geological information is not sought o r
required i n the process and yet is still collected, then the
operation may well ask, ’It may be good geology, but is i t good
business’?’ In sonic instances, there will be operations that have
geologists but (lo not know why they carry out geological
activities ;it all.
These two cxxnplcs ;ire dillicult sites to operate in a ‘business
perspective’. This is a result of the team not establishing thc
custonier/supplier rcl;itionships.
A group of geologists, engineers and metallurgists have been
assembled together, to mine and process an orebody but each
group operates in isolation and does not understand the operation
of, nor necessity for the other groups.
Leadership is also ;i critical issue here but that topic is outside
the scope of this paper.
Ilclining the customer/supplier relationships is a key step in
operating i n ;I business perspective, Ily understanding the overall
process and therefore :ippreciating the critical areas that mine
geologists add v:ilue, the mine geologists can begin to understand
whom their customers and suppliers are. Armed with this
knowledge, i t is possible to ;issess exactly whom the geologist
department, the resource department and so on. As each
department divides itself into smaller and smaller
subdcpnrtments. so the difficulty of operating in a business
perspective increases.
Overriding the effect of ‘departmentalisation’, is the ‘process’.
No matter how hard we try to ‘departmcntalisc’ oursclves into
secure silos, the process (in order to succeed) demands
interaction, communication and teamwork.
The corollary is f:iilurc.
For example. the strategic planning engineer needs to know
about thc tonnes and grades to be scheduled in year five of the
life of mine plan. I-le or she needs to know the value of the
estimate, the confidence in the estimate and the risk in the
estimate. I t would make sense then, that an organisational
structure that ennblcs the effective communication between the
key mcmhcrs of the process at any given point i n time would be
xlvanhgcous. We need ‘ a functional team’ and not a traditiori;il
depxtment.
The following organisational structure attempts to solve the
problem of ‘professional silos’ by developing functional teains.
The teams are staffed by personnel who have the requisite skills
to ; d d value at :I particular point in the process.
Thc weighting of particular disciplines within the functional
teams changes throughout the process.
Operational leverage is gained by individuals rcalising how
their particular contribution (specidty) assists their customer and
hence appreciates how they support the overall process.
The teams shown in Figure 4 could be assembled to manage
the ‘process’, (skills, weighting, activities iire examples only).
Safety, Stratcgic Analysis.
Strategic I’lanning. Contract
Man:igcincnt. I’rojcct Evaluation.
Mine Design
1
!
Tineering
-
%allEEY-:
-I -
-
2
5

-5 .-
- I
needs to communicate with, why and when. Each operation .

needs to carry out this assessment, ;IS there is no strict ‘blue print’ I_ Finance 1- s 1
lor specific customer/supplier relationships. Once the -,
relationship is defined, the process of setting the deliverables and
P’ningLearn
C&npu~g -

-
2s
-
-1
hence account;ibilitics can begin.
Establishing these relationships is important and ensures that Act i vzes
- - - -.
1 -

- .-- Skills required and weighting -- 1

the activities of the mine geologist within the process are helping Safety. Strategic Analysis, E n g i i g j n g - I:-
support the business. I-faving established that the relationship is Strategic Planning. Contract
Managenient, Project Evnluation. 1-
.fiancg. -+
2 0
important, we must then communicate through effective
organisational structure. Relationships require cffcctive Mine Design . Geological
_ , - 2 0 1
-,

communication and organisational structure provides the

framework or ‘rules’ for [his communication to occur. - - -. -. ..-

Production%!n - - - -
ORGANISATIONAL STRUCTURE Activities
- -_ -

Iiaving now described the process that the mine geologists arc Safety, Drill and Bl:isf, Survey,
involved i n and established the customcr/supplier relationships Grade Control, l’roccssing,
required to effectively deliver the product, the organisational Crushing and Grinding, Short
structure can now be reviewed.
Term Plinning and Design, ’.-
Conlracr Management, Human 5
As mentioned earlier, the most common organisational Geotechnical, Mine Design. Cost
structure of the mine is one of professional silos. That is a Control, Tailings Disposal,
geology department, an engineering department, a metallurgy Personnel Manngenient
tlcpartmcnt and s o on. The rcsult of this type of structure can I

often stille the communications betwccn suppliers m d

customers.
I- .- - -. i-survey L A
Even within :I tlepnrtmcnt, we can see professional ‘subsilos’.
For exnmplc within the traditional geology department, we may
have; the exploration department, the open pit geology FIG4 - Orgnnisationalstructure for Functional Teams

41h International Mining Geology Conference Coolurn, Qld, 14 - 17 May 2000 5

~
 The examples show that the professional silos or traditional
departments arc not necessary. The emphasis must be on
organising a team that is balanced with the appropriate skills and
zirrmged so as to offer the best probability of delivering the
business outcomes.
TWO EXAMPLES
Two traditional geological activities that are i n reality
I
multi-disciplin~iry processes (grade control and Ore Reserves)
can be viewed in the context of the previous discussions. What is
required of these processes'! Who needs the information'! What
quality and format is expected'! What inputs ;ire required?
Grade control process
The mine geologist is often chosen to manage grade control. So,
what is required to perform the function well and what
relationships, within the process ;ire required? The following
outline simplifies the process but will illustrate the issues being
addressed.
I. P / m n i i t g mgiiieers need to produce a plan and schedule
detailing when a n area will be available for grade control.
2. A grade control design plan is required to provide
information to the sro-veyors, detailing when and where
holes arc to be drilled.
3. The rrssoy khorc2rory needs to be aware of how many
smples will be arriving and when.
4. Drilling programs and dri//iiig conrrmfors need to be
co-ordinatecl.
S. Access to the area needs to be approved by the prodrtcrioii
cngirieer
6. Faces need to be mapped and data collected by ii geologisr.
7. Drill holes need to be logged by a geologisr.
8. I l a t n needs to be entered i n to ;I database.
9 Quality control checks are required on an ongoing basis.
IO. I h t a needs to be interpreted by the geo1ogisr.s a r i d
~ v t ~ q i ~ w(and
~ r . s possibly rnern//urgi.st.s if appropriate).
I I. An estimate of the tonnes and grade needs to he provided to
the pluttiiing c u d produc~ioiieitgineers.
Thc iiumber of relationships and interactions required to
successfully perform the grade control process has been
sitnplilied here. However the example illustrates the complexity
and the need for the mine geologist to develop and maintain
strong internd and external rclationships so that the product (the
tonnes atid grade estimate) can he safely provided to the
customer on time and to spccilication.
Resource/Reserve process
The I~csourcellieserve process has long been considered thc
domain of the geologist. IIowcver, ;is the industry becomes more
sophisticated, more and more companies have realised that
Iksources and Reserves arc the outcomes of ;I highly disciplined
process resulting from the interaction of specialist teams of
people, each with their own skills, knowledge and data. When
combined into a coherent process, they deliver ;I product that we
term 'Mineral liesources and Ore Reserves (as defined by thc
'JOliC' code).
It is suggested here that the first step in estimating Ore
Reserves nnd Mineral Resources be for the geologists to prepare
what may he termed the 'Mineral Inventory Model'. The Mineral
Inventory Model is ;I precursor to Resource and Itescrve
estimation. At ;I given point in time. the Model will represent the
geologists best estimate on the spatial distribution o f tonncs and
6 Coolum. Old. 14
grade and will be based on geotechnical d:ita. mineralogical data,
lithological data, grade and metallurgical data, estimation
confidence, hulk density and structural data. At this stage the
Mineral Inventory Model does not presuppose mining cut-off
grade, marginal cut-off grade, minimum mining widths, dilution.
or any other criteria or assumptions that must be made i n order to
estimate Resources and Kcservcs. All of these assuniptions ;ire
made ;it the planning stage and hence the Mincr;\l Inventory
Model cannot be used for direct externiil reporting of liesources
and liescrvcs.
The Mineral Inventory Model is the outcomc of detailed
exploration efforts in the first instance. but for any operating
mine, i t is the outcome of on-going mine geological project
work, production dnta, drilling and dct;iilcd reconciliation
processes. It then becomes ;I significant input into the striitqic
planning process.
Thc Mineral Inventory Model can he used ;is the basis lor
many mining scenarios carried out by a team of engineers,
financiers, metallurgists, geologists, environmental. legal and
environmental personnel from which one is chosen ( a corporate
decision) to become the 'Life of Mine' plan. As ;I result of this
process, the Ore Reserve and Mineral Resources are delivered ;IS
outcomes (based on a number of corporate and operational
assumptions) for external publication and internal design and
scheduling (see Figure 5 ) . Those areas of the Mineral Inventory
Model that do not have sufficient conlidencc to be regarded as
Ore can then be targeted for follow up exploration.
In this process, the mine geologists are ;iccount;ible for
delivering the Mineral Inventory Model ;it a prc-determined date
each year. Knowing this, and having the detailed parameters
required (as outlined by the customer) within the model, we can
then set clear, reasonable and achievable individual
accountabilities for the outcome required. This process then
drives improvement into areas that are definable and which
dcmonstrnbly support the business process.
Kcflecting on the understandings of the process ;IS discussed
above, there is nothing uniquely geological aboul the grade
control or Ore Reserve activity. They are examples of activities
undertaken by functional teams rather than professional silos so
as to produce an outcome. However, because of history, the
professional silo mentality often blocks the interactions and
relationships necessary to achieve the result. The 'blocking' is
ironic as it only serves to perpetuate m t l justify the professional
silo. That is, the engineering department may say ' thc geologists
iire late again with the dig plan . . .', and so i t goes on.
As professionals, we need to understand the process,
understand the custonicrhpplier relationships and then ensure
that a structure is put in place to support the process and assist i n
effective communication.
CONCLUSION
I started out by stating that 'all mines will bcnefit from
appropriately applied mining geology'.
This will only occur when the mining geology is driven i n a
business perspective.
To achieve the business objectives, the issue is not so much o u r
individual skills in a spccilic area of geology (although this is
important) hut rather, how we use our skills to deliver the
outcomes the business demands.
We- must understand the process that we are involved in, we
must understand who our customers are and what thcy want and
we must then develop relationships that facilitate the
communication of the required information.
If we can do this, then as mine geologists, we will he operating
in ;I business perspective and we will be recogtiised as positive
contributors to business success.
- 17 May 2000 . 4th International Mining Geology Conlerence
 THE MINE GEOLOGISI IN A BUSINI’SS PEKSPECTIVE

Indicated, Inferred
Filter on remaining
Mineral Inventory

f r c i S - Scheniafic ourline of the Kesource/Kcserve process

ACKNOWLEDGEMENTS There are two mining engineers that I must thank for their
continued support and belief over many years. You will know
1 would like to thank the management of Normandy Yandal who you are, Thank you,
Limited for permission to publish this paper.
I wish to acknowledge the assistance and motivation provided REFERENCES
by L) Ryan :ind C G e e for the numerous drafts reviewed. Thank
you also to N Phillips and J Hergt for their comments. The Joint Ore Reserves Coriimittce, 1999. Australian Code for Reporting
of Mineral Resources and Ore Reserves (Thc JORC Code)
To those of you who I have had the pleasure to work with,
thank you for the feedback and experience that has assisted in the
development of this paper.

4th International Mining Geology Conference Coolurn, Qld, 14 17 May1 2000

~
7
8 Coolum. Old. 14 - 17 May 2000 4th International Miriirig Geology Conference
Dynamic Links Between Geology and the Mining Process
T C McCuaig', J Vann2 and C Seymour2
ABSTRACT
Geology is generally treated as a 'front end' step in mine development.
After infill drilling, the majority of resource estimation. mine-planning,
tlevelopinent. mineral processing strategies and operational procedures
:ire planned and iniplementcd with little geological input, particularly in
open pit operations. However. significant benefits in overall costs, cash
flow. and technical risk reduction can be realised when sound geology is
utilised more rigorously throughout the mining process.
This under-utilisalion of geology in the mining process has arisen due
to a coinhination of factors:
I. A lack of interest in. or knowledge of the full mining process by
gcologists. Few geologists fully understand where their inputs
make critical impacts on downstream users.
2. As :I result of this, geologists generally do not focus their inputs
towards areas o f greatest value added, ie addressing issues critical
for other members of the mining tcam.
3. Most import;intly. few geologists effectively communicate their
results to the downstream users of their geology models. The
results are that the potential benefits of geology, and the
appropriate status of geology in the mining industry. are not fully
realised.
It is fundamental to realisc exactly what geologists do. Geologists
constrain geological processes and geometry. All geoscientific tools at
the geologists' disposal are geared towards one of these goals. An
emphasis on geological processes is present throughout the exploration
process. whereas in the resource estimation and mine development
proccss an emphasis on geometry is required.
The mining process is a web of disciplines that are attempting to optimisc
development of a resource to provide value to shareholders. Yet few
people within these disciplines have a full appreciation of this web, and
where sound geology inputs can add value through various feedback
loops. Geology inputs do not end at the resource estimation stage, nor are
they relegated to grade control implementation. If geologists have an
appreciation of the niining proccss and close liaison with thc other
disciplines such as gcostntistics. geotechnical engineering. hydrogeology.
and mining engineering, they can significantly benefit project costs.
timelines, and constrain technical risk by addiessing their issues at the
earliest possible stage. Furthermore, the mining process is not a single
pass tinieline. but an iterative process where the exploration, rcsource
definition. mine planning and mining loop is continually repeated over
the life of a project. Therefore, the potential inputs of geology are critical
throughout the mining process.
Effective communication of the impacts of geology inputs on
downstream users is often lacking on mining projects. The most effective
way to communicate geological results is through where it impacts most
- project risk. Focussing all geology inputs and communication in terms
of potential material risk allows the geologist to be more effective in
contributing value to the mining process, and allows the downstream
users of geology inputs to better constrain the risks associated with their
aspects of the mining project.
Through a program of geologists:
1. taking an interest in the entire mining process and identifying
critical areas for geology inputs to downstream users (the
geologists' clients);
2. focussing geology inputs to address the potentially material issues
on mining projects; and
I. Senior Associate, S K K Consulting. PO Box 943, West Perth WA
6872.
2. MAuslMM. Technical Director, S R K Consulting. PO Box 943. West
Perth WA 6872.
4th International Mining Geology Conference Coolurn. Qld, 14 - 17 May 2000
3. communicating their inputs to the 'clients' in ternis of technical
risk, geology will he much better integrated into the mining
process.
As a result, the potential benefits of geology throughout the mining
process will be realised, and the status of geologists within the mining
process will be elevated to a more pivotal position.
INTRODUCTION - UNDER-UTILISATION OF
GEOLOGY IN THE MINING PROCESS
Geology is generally treated as a 'front-end' step in the mine
development (Figure I ) . After inlill drilling, the majority of
resource estimation, mine-planning, development, mineral
processing strategies and operational procedures are planned and
implemented with little geological input, particularly in open pit
operations. Although geologists are employed throughout the
mining opzration, they are often fully occupied with grade
control and production issues with little time allocated to
assessing potential geology inputs to mining operations. This is
particularly true with the recent trend towards reducing
geological staff in the interests of reducing operational costs.
However, significant benefits in overall costs. cash flow. and
technical risk reduction can be realised when sound geology is
utilised more rigorously throughout the mining process.
For example, rarely does a project finish infill drilling without
requiring significant additional work to be done at the
prefeasibility, feasibility o r mining stages. While fully addressing
all possible issues on projects is not a practically achievable goal.
i t is the authors' contention that such additional work, and
resultant delays o r fatal (material) flaws in project development,
can largely be avoided. This can b e achieved if geologists and
management possess an acute awareness of the integration of
geology in the mining process, and by directing data collection
and synthesis at early project stages towards end-user
requirements, eg resource estimation (domain definition issues;
drill orientation, density and data quality issues impacting on
resource classification). geotechnical (geometry and structure
issues - early characterisation of structures and rock mass),
metallurgical (recovery issues - early petrography of ore, assay
for potential penalty elements), hydrogeological (water problems
- installation of piezometers in exploration/infill drill holes), to
name but a few.
This under-utilisation of geology in the mining process is
rarely due to incompetence, but rather to mutual ignorance and
lack of communication between various disciplines o r stages in
the mining process stream. Geologists often d o not fully
appreciate the requirements of their downstream users, and the
downstream users d o not fully appreciate what geologists can d o
for them.
Geologists who invest time and effort in understanding the
potential downstream application to their inputs, and with the
ability to communicate their potential contributions to mine
planners and management will not only be more effective. but
will assist in increasing the awareness, status and benefits of
geology in the mining industry.
Similarly, resource estimation specialists, mining engineers,
mine planners and metallurgists w h o seek t o capitalise on the
geologists' potential inputs will b e better able to evaluate,
mitigate and manage project risk in their respective technical
fields.
9
T C McCUAIG. J V A N N : I I C
~ SEYMOUR

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Coolum. Old, 1 4 - 17 May 2000 4th International Mining Geology CorlfelCnC‘2

10
 IIYNAMIC LINKS BETWEEN G E O L O G Y A N D TJIE iMlN1NG PROCESS

THE GEOLOGIST’S TOOLKIT - WHERE IS IT Geological processes and genesis of orebodies

THAT G m L o c I s n ADD VALUE TO THE
MINING PROCESS?
Wliiit i s i t that geologists can add t o the mining process? What
:ire the real issues that they address? Today’s geologists have ;I
plcthor;i of gcoscicntific investigation techniques and datasets at
their disposal (Figure 2). The chnllcngc i s to rccognise what lines
of invcstigatinn will add thc most value, and thus where to direct
(1;it;i coIIcction effort, interpretation effort. arid dollars.
What geologists do - geometry vs genesis
In the opinion o f the authors. geological investigations using the
Inyrixl tools listed in Figure 2 :ire a l l ultimately aimed at
coiistraining either geological processes ( e genesis
~ of ore) or
geometry. For cx;imple, regional :icrom;igiictic data is used to
determine the geometry of lithology and structure, or cvidcrice
that ;iltcration processes have taken place (magnetite-producing
vcrstis ni~ignctite-destructive).in order to make predictions as to
the potenti:il location of mineralisation (ore gcnesis). Structural
analysis of orebodies is aimed ;it determining the geometry of
ore, whereas kinematic analysis of oriented core i s locussed on
undcrstnnding structural processes that controllcd the genesis of
ore. An;ilytic;il geochemical studies on mineral deposits (SEM
analyses of iniiierals, stable isotopes. Ilriid inclusions. radiogenic
isotopes) iirc aimed ;it constnining geological processes that
have operated in ;i region. and those which controlled the genesis
of miiwalisa[ion. Gold ass;iys arc generally aimed at
determining the prescncc or geometry o f mineralisation during
exploration phases, i n ;iddition to their use to quantify resources
;it a htcr stage.
Geological processes that arc investigated generally address
controls on mineralisation. but may also involve other issues
such as development of weathering profiles. or decay of
rnincralised waste at surface (acid mine drainage). I n these
studies, the geologists continually formulate hypotheses. as to the
location of mineralisation for example, and determine what typcs
of data they will require to test the hypothesis or better predict
where mineralisation may occur. We emphasisc the importance
of focussing on process versus models in these investigations.
Genetic models are essential in that they form ;I framework i n
which we can visualise ;ind understand geological processes.
However, modcls tend to take on ii life o f their own and tend to
drive data collection i n self-fulfilling directions (McCuaig and
Hronsky. submitted). It i s an appreciation of geological processes
that advance our understanding, and result in thc refinement of
geological models or the generation o f new geological models.
The cffective geologist must he ;I model-builder. not ;I model
pusher. The search lor evidence that mineralisation processes
have occurrcd based on our understanding of ore genesis
dominates in the exploration phase (Figure 3).
Determining orebody geometry
By the infill drilling stage. the cmpiric:il determination o f
lithology, structure and mineralisation distribution, albeit
constrained by our understanding of processes. has begun to
dominate the exploration psychology (Figure 3). During this
exploration phase the geologists draws upon their ‘toolkit’ to
constrain these geometric;il issues, as they arc the critical issues
from this point through to the mine development stage. While
genetic models and understanding of mineralisation processes

I I
BASE “-
DATA
I SOURCES ~

I
I A b
geostals
I GEOPHYSICS
.rnagnefks
I . gravify metals lithageochem
. seismic
i %
-- + - - -:
MAPPING -
I pelrouraphy
I ....................................,
, . ........ ................................ ...... ,......... ...,...........
I

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ORILUNG I
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L‘ h L l n G W 2 ; F b JIW

I’K, 2 - kxainples of the iiiultiple gwwence subtllsciplines and analytical techniques that modern geologi\ts have a i their di\posal

4th International Mining Geology Conference Coolurn, Old, 14 - 17 May 2000 11

T C McCUAIG, J VANN :ind C SIIYMOUII
IC
I
very
low
Grass Roots
Exploration
Advanxd
Prospect
Development
Dnlling
Prefeasibility
(realisation
that a significant
resource is present)
PHASE OF MINING PROCESS
Fi(i 3 - l’roccss. gcorrietry and risk inpuis through the exploration to operation phases of iiiinc dcvelopiiient
are important to delinc;ition of extensions to ore and near-mine to
far-field exploration cfforts, they are not a s critical to resource
cstiin;ition and optirnisation. For example whether a deposit is
intrusion-related or not i s usually irnm;iterial to its succcssful
development . . . i n fnct, full genetic understanding of mineral
deposits i s rarely reached even after the resource has been fully
exploitcd. Nevertheless, an understanding of processes is still
important (eg understanding structural processes and kinematics
;is an aid to interpreting corrcct geometry o f mineralisation).
Risk analysis and geology
A third issue that gcolngists’ address is technical risk (Figure 3).
Although often undertaken in an ad hoc manner, such assessment
by geologists determines the risk (uncertainty x consequence)
associated with both the empirical dctcrmin;itions of geometry
and thc understanding of genetic processes discussed previously.
In assessing geological processes, models, and geometric
interpretations, an objective rather than subjective approach i s the
key. Iklieving that a geological interpretation of geometry is true
will nnt make i t so, and can lead to material errors in resource
delineation and estimation. Such objective analysis is critical for
cffcctive risk cvaluation of resources.
Geologists c;in signific;intly contribute to the risk assessment
process through an understanding of the issues facing the
downstream users o f geology inputs. For example. inadequate
understanding of the geometry of mineralisation is one of the
critical contributors to resource risk, ;IS i t results in improper
stationarity decisions for resource estimation. Many of such high
risk issues in mining projects can be significantly ameliorated
through the focussed application of sound g ~ o l ~ g :is
y . we outline
below.
So, having outlined the issues that geologists can potentially
constrain, iintl the tools at their disposal, how exactly does the
geologist lit into thc mining process‘!
12 Coolum. Old. i 4 . 17 May 2000
I
’
Bankable
Feasibility I’
financing
ue
I
I
Startup I Operations
Diligence)
THE MINING PROCESS
Components of the mining process
The mining process comprises a number of subdisciplines and
stages, which arc summariscd in Figure 4.
Figure 4 emphasises the role of the geologists in the mining
process, and how their understanding of geometry and geological
processes directly or indirectly impacts on the various mining
subdisciplines. The fundamental contribution of geologists is to
contribute a 3D geological model, utilising the tools ill their
disposal in the ‘geologists‘ toolkit‘ (Figurc 2. Figure 4).
Examples of key issues facing downstream users th:it can have
miiterial effects on projects, and into which geologists can have
significant inputs, are listed in Ihble I .
The ore reserve estimation process as an example
Each iispect of the minirig process has dynamic links with
geology. To illustrate some of the dynamic links between
geology and the mining process, we use the example of the
resource estimation process as outlined in Figure 5. This reserve
estimation process runs in parallel with the stages in the mining
process outlined in Figures 3 and 4. Note that the inputs of
various subdisciplincs ovcrlap, and have strong links in these
areas. Geology is the one discipline that links strongly
throughout the mining process.
Furthermore, Figure S emphasises that other subdisciplines of
the mining process must be considered throughout the rcscrve
estimation process. While examination of Figures 3 thrnugh 5
may suggest that this i s obvious. it is remarkable in the authors’
collective experience how often this cross-fertilisation bctwccn
the various disciplines i s not accomplished, with the tasks o f
geology interpretation. resource modelling, gotechnical
engineering ;ind mine planning and metallurgy being carricd out
4th International Mining Geology Conlercnce
 1)YNAMIC LINKS HLTWLEN GEOI.OGY A N D TIIE IMINING PROC:ESS

i
P _I
x -
"- T I T __ _I - 3%
__

petrography
1
geophysic
I
drilling
I
mapping
I
geochemistry
%

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& I I * <

I 4
lithology structure grade falteration "d
distribution distribution distribution
_I
% -
I-. I +. hu
7

v
'
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.- - -

KPI

I (reserves, schedule, costs, etc)

I
1
! MINING STRATEGY I

1 -* Declslon to
KPI ---+
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spend $
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Flci 4 - Disciplines and stage?,in the inining process. eniphasising major linkages

4th International Mining Geology Conference Coolurn, Old, 14 - 17 May 2000 13

T C McCUAIG. 1 VANN and C SEYMOUR

T n a i . ~1
fi~cl~ictrl ~ i d geology impacts i i p o t i ihem. /terns ill bold type r(Jprc.scrrt
.sithrli.vclii~liiie.sof ilie riiinirig process n ~ ~ i wliere
~ ~ o i m t i a lriinrerid
ly risks.

'
. Srrb-disciplin&sp~cl
-~ ~ i- Key.cXrihutiL. '-&a.mples
,
~. -. - -
;
of w h e r e ~ g ~ o g i s t s c a n m a k q ~ f e r e n c . ~
Gcology/resource deline;ition 3D geological inodel for inputs into resource and
- Fully utilise geologist's toolkit to constrain hoth gcoiiictry nntl I
mine planning I genesis of ore. Aiin is to provide best geometric + p i c t i c '

: - Understanding of mineralisation procews for ' model possible

._ -. ~ I1 -inputs
- - to n c z i j n e e g m t i o n / E s a t i o n . - - i ~ ~. -. .. . .
- .I
: Geostatistics/t.esource cstiination I 311 grade distribution estimation hlock model I Well constrained 3D geometry model to aid in stationarity
decisions (correct s h a p s . position ;ind classification of I
boundaries) !
Close liaison throughout resource estiination. pclrtic:ularly i n
variography stages to clearly coiiiniiinicate geoinetric controls
o n ore
I'Ioofing of resultant block model to verify that i t is I
geologically sensible
I
Sound geology can severely impact on resource classilication
- and reduce t e c h n i c a s k . - ,
I
. .- ~ ~

model Knowledge of geotechnical domain logging I

I inass characterisation. slope and
Attention to nature. density and distribution of structures :ind
support consider:itions
I lithology AWAY from niineralisation (eg pit walls)
Itlentification of high-risk geotechnical tloinains
I
I
Attenlion to geotechnical d:ita collation during infill drilling
can signlficcrntly r e & . c o s r L - -1
I Hydrogeology/water hal:incc I Hydrogeological illode1 , Attention to collation of water data during exploraiion.
of piezometers (relatively cheap) for water lcvcl j
over as wide an area as Dossible froiii earlv
exploration stages can save significant dollars at the feasihility I
stage hy not having to retlrill hydrogcology-specific holes 1
Accurate delineation of potential aquifers/aquacludes
~. ~ -. -(structurql,ologica!l_
. - - __ _- .~ I
Metallurgy and process Recovery model and procehcing strategy Petrography of niincralisation froni early stages to help
I
cnginecringlore recoveries,
processing technology and
procedures
I constrain mineralogical nature and controls on distribution of
any refractory ore

I Assay for iiiore than primary coiiiniodity (penalty clemcnts. I

environmentally sensitive elements. Co, S for Cu deposits) - i
helps to get a handle on their spatial distrihution hclore !
fe. : ' '
-. Iw!Y-. __ - - - . _ _ -. . .
I Environiiientd I Environniental strategy IJarly identification and distribution of potentially
;icid-forming ina(cri;il, acid ncuirnlising Iilntcrial lor design of
I
I waste nianagcrnent strategies
Identification of any high concen~rationsof environinentally !
1.- - -
sensitive
-eleiiients - -. _- ._ - -.
, Mine planning I Mineral balance sheet Rohust geometric model a n d genetic model to prioritise
conversion of resources and reserves, identify potential
I'
I Life of mine plan
extensions to ore, properly assess sterilisation of
i infrastructure sites
Delineation of critical areas of risk in geometry
i
interpretation that could affect schedulindrcserve I
conversion
Assistance in defining potential selectivity of inining I
1)efinition and suhtletics of weathering profile i
aSs.siJlenI. -
I
Operations
-. -
I Effective execution and optimisation of mine plan I with
Overall risk
~

[):sign of adequate grade control procedures i n conjunction

-I-- - --

geostatisticians. particularly noting where geology can

I
1
! I
I
! help constrain ordwaste blocks (cg highly visible alteration
assemblages, prominent ore-controlling structures)
I
I
I
!
-
I Continued improvement of geological modcl for multiple
iterations and continued optimisation of resources and
mine PIE!? - .- - .- -. - .-
I
!
. ... -. .- ~

14 Coolum. Old. 14 - 17 May 2000 4th International Mining Geology Conference


Geostatistics --
Le al, Social
& Qiovernment
- - - - - - - - - _ - - - - - - - - - - - - _ _ _ - _ _ _ _ _ _ _ - _ - - _ - _ _ _ I
FIG5 - The ore reserve estimation process.
in isolation from each other. Such insular approaches minimise
the benefits of cross-fertilisation and significantly increases the
technical risk and probability of fatal flaws in mineral projects.
It is also imperative to recognisc that the mining process is
iterative right through to the operational phase. As more
information is gained during mining, geology models (geometric
and genetic) are improved, resources recalculated and
reclassified, and mine designs altered to optimise the project.
Thus, since projects are not a single pass through Figures 3 - 5 ,
there is even more opportunity for cross-fertilisation and geology
inputs are critical throughout the life of mine.
RISK ASSESSMENT AND GEOLOGY
Given the keystone aspect of geology in the mining process
outlined in the previous sections, it is natural that geologists
should be instrumental in the evaluation of technical risk on
projects, yet this is rarely the case. Geologists often tend to focus
their investigations into areas that do not maximise value
received versus expenditure of time and money. This arises
because geologists by nature tend to be more interested in the
genetic and theoretical side of mineral deposits (most geologists
did not enter geology specifically to become mining geologists,
or even to he involved in the mining industry), and because few
geologists have a full appreciation of the concepts of how
geology fits within the mining process as outlined above.
However, with an appreciation of where geology inputs impact
on the mining process. a geologist can provide quality inputs to
the above categories to evaluate, manage, and hopefully mitigate
risk in all aspects of mining much more tightly. A geologist
should focus inputs to those issues that could have a material
impact on projects. In the current economic climate with low
commodity prices, such input can make or break projects.
41h lnternalional Mining Geology Conference
DYNAMIC LINKS BETWEEN GEOLOGY A N D THE MINING PROCESS
-----_- - - - - - ----_----
I
I
I
I
u~nxunsuu~mo
Effective risk management focuses on issues that could lead to
material errors in mineral projects (high uncertainty and high
financial consequence). Results of geological assessment of
project risk must then be effectively communicated to other
disciplines and management. Risk matrices are useful ways to
accomplish this (Table 2). Presentation in this format clearly
communicates where the risks lie and allows management to
quickly comprehend the issues and decide where to commit
resources to add value to projects. In the example presented in
Table 2, it is clear that the geological inputs to the resource
estimation arc rated at moderate to high risk, and that more
emphasis on constraining the structural controls on ore and the
refractory nature of ore are required. Such tables rating the
quality of geological inputs can be constructed for any or all
aspects of the mining process.
GEOLOGISTS SHOULD LEAD THE WAY
The authors’ contention in this paper has been that geology is
presently under-utilised in the mining process. This situation has
arisen through a combination of some or all of the following
factors:
1. most geologists do not fully understand the mining process.
and therefore where they can contribute more effectively to
downstream users in mineral project development;
2. geologists do fully utilise the ‘toolkit’ at their disposal to
address these issues;
3. geologists do not focus their inputs to prioritise issues with
potential material effects on projects; and
4. geologists do not effectively communicate their results to
the rest of the mining community.
Coolurn, Old. 14 - 17 May 2000 15
 T (3 McCUAIG. J V A N N and C SEYMOUR

TARIX
2
Exuttiple of (1 risk ~iiutrixforgeologiccil inputs itito ( I wsource e . ~ t i t t i d o t tRisks
. ore cln.s.sifified(IS low = littlr risk io project, ttiediiitti =
rtiodrrclie, hiit rlori-mnterial risk to project and h i g h = poretitially tiicitericil risk to project.
.- - - - -. - - -. - -. .- . - -. __ .-
' .- - - .- - .. .

/ Aspect of datdinterpretation i
Contrihutinn to Ilrill campaign 1 Drill campaign 2 ! Development
- - - -. -
,

I overnll P s j e c t r i s L - .- - - - .- - -, .- -
Comments
- -. .-

;.-furvcy
-_ da!? .- - .- -. 1 °K -. !-_
.low_. .-.low - ; - - _-
low - I Survey_dar;ls oftjgh-q5dity-- ,

' Sampling procedures medium medium I low low ' Sampling procedures are adequate lor
I ! , resource estimation purpows.
! I I
i
Development sampling is inadequate
I
I I for estimation. but has n o t been used ,

I Specific gravity data

:- - -_- - -
!
L
low
- - -
'
L - - -
low 1
._ -.
low
- I -.
da
-
-.I

-
in-!stimatt.ion-

I 3 u a W -.
- .-

- - -.
__
, Specific gravity data is of acceptahlc :
- -
!

! Assaydata - - I
_i -. low I - .low
- - I .-low - I -- .~.As?y d a i ~isof ?csptabJr qu$jty__ !
low_-
Mapping/logging quality I low I ow I Structural logging is of poor quality i
~ow
i Lithology I IOW : high I medium low
I due to poor orientation quality and
l Structure' i niediuni I medium i low, low
, logging techniques. Weathering hac
: Alterorion low medium ! medium low
' not been consistently logged.

. -. We?!he r i g - - .- __ -K!&m- - - .- .!_ - -. - _-. - -. - _-

- - - -. .. - :

I Geology interpretation I i Structure interpretation is poorly

' Lithology low ' constrained. and controls on
! Structure' ! high I
i I i oreshoots x c unconstrained.
Controls on mincralisatiod high Weathering surfaces have not been
i alteration' i I I
I : adequately defincd. hut contrihutes ,

I Weathering surfaces
!
medium I ! I only moderate risk as most of

, .-

I refractory ore
-.

I Understandin$ of nature of
- -. -

1
- - -
high +
I
.- h$ -. 1-
- -.
medium I
- . - - - - ,I r c z u r s i s k f r c s h rock. - - -I

low 1 Insufficient analysis of controls on

refractory orc. Requires petrography
.I- -
~

! -. . -. - -. - - .-i -. - - ._- .- .- -.
I - - -. ! onrep~se""ti~samples- .- -
- .-
i Stationarity tlccisions 1 high I medium I low I Geological domains for resource
Position of doninin 1 medium-high I estimation purposes are only loosely ~

! hound:iries' I
i I I defined due to uncertainty in
'.-

I Structural logging is inadequate due to poor core orientation. 1)rill campaign I also employed incorrect structural logging techniques.
2 .The structural intcrprctation is poorly constrained, due to structural information quality. and rnisinterprctation of shallow rnineralised links
between steepcr major shear zones. This is viewed as a high-risk issue that may have a material effect on the resource estimation.
3 Thc controls on mineralisation, oreshoots. and variation in mineralogy with host rock is poorly understood. Given the variably refractory nature
of the ore, this could potcntially have a material effect on reserve estimation.
4 The ore is variably refractory, with recoveries increasing with degree of weathering. However, the controls on refractory ore are poorly
understood in the fresh rock (the bulk of the resource), and contributes high and potentially maferial risk to the project. However, it will ~iot
materially effect initial cash flows due to high Au recoveries in the weathered zone.
5 Due to the uncertainty in thestructural inrcrpretation. the position of major hound;~riesfor purposes o f resource estimation may be in error.
contributing high and potentially material error to the project

T h e end result of this, and especially the latter point, is that the 3. Identity the major issues lacing the downstream
other mining disciplines d o not fully appreciate where sound processes/users. and treat them as your *clients'. Rerrlise
geology can assist them in their respective tasks. which will he potentially material in nature (prioritisntion
T h e recent economic climate has resulted in a severe downturn of high risk issues).
in the geology profession, While the lack of appreciation of the
4. Focus geology data collection. interpretation and inputs to
potential applications of geology is widespread throughout the
address these high-risk issues.
industry, the onus is o n geologists to lead the way towards more
fully integrating geology with the mining process by increasing 5. Communicate thc results to 'clients' o r project team
the awareness, benefits and ultimately status of geology in members (downstream users) in a practical foi-mat (eg risk
mining. matrix).
T h e geologists' challenge is to utilise an appreciation and In addition, it is necessary to adopt a mining process mindset
understanding of' the complete mining process as outlined in and address these issues at the earliest possible stage of resource
Figure 2 through Figure S in a five-fold approach: delineation. By being aware of and addressing issues such as
those outlined in Table 1 early in the process. significant cost
1. Become familiar with the geologist's toolkit. Fully
henefits. shortening of timelincs to start-up; and technical risk
understand what investigative techniques are at your
reduction can b e achieved. We emphasise that this can only b e
disposal and what technical issues they can possibly
achieved through close liaison between all mining subdisciplines,
constrain.
each with a mutual appreciation of the other's abilities,
2. Take an avid interest in, and educate themselves in, these limitations and required inputs.
various aspects of the mining process.

16 Coolum. Qld. 14 - 17 May 2000 4th International Mining Geology Conference

 I)YNAMIC LINKS BETWEEN GEOLOGY AND THE MINING PKOCESS

ACKNOWLEDGEMENTS
The authors wish to thank their many collcagues within SRK and
clients worldwick who have contributcd to their understanding of
the role nl' gc.ology inputs to the mining process. S Jackson and
;it1 ;inonynious rcvicwer ;ire thanked for critically rcvicwing the
inanitscript. J Mower and P Sansom are thanked for assistance in
assemhling this document. Drafting of ligures wits provided by
Kerry King Graphics.
REFERENCES
McCuaig, T C and Hronsky. J M A. 2000. The Exploration Industry -
lkonoinic Geology Research interface: A review of iis current status
and vision for the future. SEG workshop. Reno, Nevada. Septeinber
2000.
Stephenson. P K and Vann. J. 1998. Conimon sense and good
coinrnunication in mineral resource and ore reserve estimation, in
f ' m c ~ r e d m ~PACHIM
.~ 'Y9. pp 43s-44 I (The Australasian Institute of
Mining and Metallurgy: Melbourne).

4th International Mining Geology Conference Coolurn. Qld. 14 17 May 2000

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17
Coolurn. Qld. 14 - 17 May 2000 4th lnfernafional Mining Geology Conference
Sampling and Databases
.
Systems and Protocols of Geological Information Management
at Telfer Gold Mine, Western Australia
R D Carison', G R Howard2 and G Back3
ABSTRACT
Manageiiicnt of informtion systems for data collection is essential to
iliainrain data integrity and continuity, and manage loss control on a large
world-clxs mine such as Telfcr Gold Mine. This paper aims to describe
thc inOivid~alsystems and protocols of geological data capture at Tclfer.
then focus on Quiility Assurance Quality Control data as an example of
loss control i n practice Loss control systems are required to provide
capacity. flexibility. struclure and management tools to enhance data
interrogation. The data that have been collected can then providc
pedogical. linancial. environincntal. and contractual inforination to
optiniise inanagrinent of business best practice.
Telfcr Gold Mine is a wholly owned and operated subsidiary of
Newcrest Mining Limited. The inine is located in a reniote area of NW
\Vestem Australia. and has heen operating for 20 years. Geological data
have hsen collected at Telfer since 1973. The data include drilling. assay.
geological. survey, structural and geophysical data. Data inmagement has
evolved through niany systems with data stored on many different
hardware and software platforms. Cornniencing in 1995. collation.
standardisation and validation of the histone data was completed. This
has resulted in the first Access based drill hole database incorporating all
av:iilahle drilling data. This drill hole database. now hosted in SQL
Server. IS the hub for all geology related data nianagenienr systerns.
The Telfer Cold Mine Geology I>epartment has tlevelopcd a series of
inter-related database systems in order to inanage the core geology
business issues. 1hlab:ises relating to drill hole planning, drill contract
nxinageiiieiit. gcologic:il logging. accounting (standard costing.
forccxting. invoice reconciliation). quality control (QAQC). and
environment rehabilitation have a11 been developed to inanage loss
control
Manageirient efton to provide adequate data systcrns and protocols has
driven the systcni from concept to utilisation. The improved productivity,
daia integrity a n d data analysis capabilities provided by the new database
systenis :it Tclfer have allowed for greater confidence in decision making.
Systeiris such as the tlnll hole and QAQC databases. when utilised in the
proper rnnnncr provide up-to-date data analysis for resource audits and
contract ncgotlations.
The loss control systems are essential to maintain confidence in data
integrity and hence directly effect the future of mining a1 Telfer.
INTRODUCTION
Coiirrvl of rivoidcihle loss in the tnunagetnent
.sy.steiri is oiie of rhe few rernoining nreus oj
hic.sitie.s.s wirh mcijor cost-redicction potentid -
DNV, 19'99.
The Telfcr Gold Mine is a world-class goldcopper mine in the
remote northwest of Western Australia. Originally discovered in
1'971 and mined since 1975, Telfer is a mature mine that has
produced in excess of S.7 million ounces of gold (Howard et t i / .
2(K)Oo). The mine is currently undergoing a major review to define
extensions to the existing open pittable and underground
resourccs. This paper describes the individual systems and
protocols of geological data capture at lelfer. with focus on
spccilic Quality Assurance Quality Control data as an example of
loss control in practice.
~~~~~~~~~ ~ ~
I. Newcrest Mining Ltd. Geology Department. Telfer Gold Mine.
PO f h x 63x0. Bisl Perth WA 6004.
3. MAuslMM, Newcrest Mining Ltd. Geology Dcpartinent, Telfer Gold
Mine. 1'0 Box 6380. F ~ s Pcnh
t WA 6004
3 H:ick Enterprises I'ty I-td. I O James Street. Guildford WA 605.5.
4th International Mining Geology Conference Coolum, Qld. 14 - 17 May 2000
The database established to store current and historic drilling
records. is the single most valuable resource held by Telfer. The
system currently stores in excess of two million assay records
and 1 .S million drill hole geological records.
The revised protocols established in the past two years have
been focussed on providing a modern, robust. flexible and cost
efficient data storagc system capable of minimising business risk
through appropriate loss control systems.
SYSTEMS ARCHITECTURE
Network
A PC network was established ai Telfer in the late-1980s. and
has since been progressively upgraded on an as needs basis. It
currently uses N T servers and Windows based client machines.
All client machines were recently upgraded to 300 M h z Ccleron
processors or better and NT4 operating systems during the Y2K
upgrade project.
Principal accounting and operations management systems such
as payroll, purchasing, and maintenance planning arc based o n
the MlMS application system over an Oracle database.
Microsoft Access
Microsoft Access was adopted as the front end development tool
for the databases because of the low technological demands and
likely future development life cycle ensuring the database will
have a long shelf life. T h e initial systems were developed in
Access 2. For Y2K compliance and 32-bit capability, the
Cront-end databases are now fully converted from Access 2 to
Access 97. All laptops including rugged logging computers used
for field based logging utilisc Access 97.
SQL Server
T h e existing data were converted to a standardised database over
several years. Data were loaded, reformatted, re-coded, and
validated and now have a high level of confidence. Owing t o
performance, security and reliability reasons the database was
converted to Microsoft SQL Server version 6.5. Version 6 3 now
forms the datastore for all databases with shared data. T h e data
reside in seven distinct databases with some local data remaining
in Access. A part-time specialist SQL Server Database
Administrator supports S Q L Server. S O L Server will be
upgraded to Vcrsion 7 in the near future.
Communications
A recent upgrade of ihc site cabling from coaxial t o fibre optic
has increased communication speeds from I O Mb/s to 100 Mb/s.
This has substantially improved reliability and performance.
Enhancement of hardware at both client and server ends of the
process has improved productivity and reduced frustration
arising from response delays and Failed processes.
Client Server
T h e move to S Q L Server was the result of the data storage and
retrieval needs of Telfer exceeding Microsoft Access's design
limitations. Update and retrieval times were becoming too long
and data security was becoming a concern with nearly two
I
21
R 1) CARLSON. G R HOWARD and G BACK
million records in the database. With a separation of roles
between Access. as the front end, and SQL Server as an
intelligent back end. the security. performance and network
traffic o u t c ~ m e shave been significantly improved.
Replica tion
The Drill llole Database is replicated between Perth and Tclfer
and is equally available for review and extraction a( either end.
The replication is managed by SQL Server and is reliable,
reasonably quick and does not appear to place undue traffic on
Perth-Telfer Communications.
ODBC
Online Data Rase Connectivity is a standard initiated by
Microsoft and now supported by many products including SQL
Server, Access, Surpac, Maplnfo. etc. Integration of data
generation by modelling products such as Surpac, and database
management by custom written Access applications such as the
Face Sampling database via ODBC, provides time saving and
reduces error.
Imaging
core photographs are now capturcd in JPEG (a compressed
image format) files. The images are filed electronically and are
available for on-line review on the network. The drill hole
database links drill samples to the relevant image file. Core tray
image processing is now a routine part of the data management
process. All historic colour slide images are being scanned for
ease of access in data validation and geological interpretation
Integrated security
NT network security has been implemented so that SQL Server
will permit only appropriate access levels based on the
permission’s assigned to the network logon. Data are assigned
for update by authorised staff, with read only for other staff.
Sensitive data can be restricted by the network logon.
System Map
FIG I - System map.
22 Coolum. Old.
DATABASES
Planning index
The planning index is utilised as a front end IO the data handling
process for all drill holes planned at Teller (Figure I ). The
planning index records all details of drill hole planning including
collar coordinates. dip, azimuth, predicted depth and xcounting
cost centres. drill hole locations determine hole numbering with
the database assigning sequential numbers to holes drilled (in the
same section northing. Accounting cost centres are dclined
automatically from grid coordinate data. Drilling type such as
reverse circulation (RC) pre-collared diamond drill holes are
defined so that the holes can be scheduled. AI1 planning
information is recorded in the drill hole database to validate the
pick up of the surveyed collar and end of hole information. I f
data vary from planned details then senior staff are required to
sign off on changes, agreeing to the disparity. This is part of the
validation process.
Forecasting
The forecasting database is utilised to estimate and schedule the
drilling programs. Details of drill hole sequence by drill rig are
entered. Forecasting is then estimated using predefined drilling
rates. The system incorporates esrimations of time taken to move
between sites, and to from RC to diamond on
multi-purpose rigs. Hole can be also adjusted to
extraordinary such as to benches
affected by production requirements.
Drill control
Drill control is a database that stores information relating to all
chargeable and non-chargeable items affecting drilling rigs.
Geologists transfer the drilling performance information supplied
on daily drilling shift record sheets (plods) on a daily basis. All
informalion related to metres drilled, eonsumables used, working
time chargeable and non-chargeable are recorded. This provides
an up-to-date, precision cost control system. Summaries of costs
14 . 17 May 2000 4th International Mining Geology Conference
 SYSTEMS AND PROTOCOLS OF GEOLOGICAL INFORMATION MANAGEMENT
to-date can be calculated, and the invoices from drilling
companies reconciled against the shift record information. The
system has sophisticated reporting functions that enable graphing
of information including drilling rates, consumable usage and
breakdown time.
Drill hole
The drill hole database (DHIIB) is the key process that links all
the other systems (Figure I ) . IIHD13 records all information
relating to geological logging, sampling, sample tracking,
surveying, and assaying for every hole drilled at Telfer. The drill
hole process commences with generation of a drill hole name
formulated i n the planning index. Information such as accurate
collar survey, geological logging, assaying intervals. sample
dispatch, returned assay data, and downhole survey data are
added incrementally as the data become available.
Geological logging
The geological logging codes and tables record all data from
logging of drill hole chips and core. This was revised to its
present form in 1998. These logging codes have been derived
using parameters defined over 20 years of logging drill holes at
Telfer. The task required the re-coding of over 1600 different
historic codes into the new codes. The geological logging is split
into five primary tables:
Alteration - mineral and intensity;
Lithology - stratigraphy, rock type, oxidation. colour,
grainsize, fabric, comments;
Mineralisation - mineral. intensity, and occurrence;
Veining - type. tcxture. attitude. percentage, width; and
Structure - width. type, attitude.
The geological logging database is used on laptop computers
for entry of data in the field. The system is used to enter all
geological. sampling and preliminary downhole survey data
(Eastmm single shot). The data entry of information is validated
as entered via look-up tables. Further validation is completed as
the data are transferred tn the primary database.
Sampling
All samples are prepared at the in-housc Telfer Laboratory.
Samples are either assayed at Telfer or pulps are transported to a
commercial laboratory in Perth. Details of all laboratory job
number and technique details are stored in the DHDR assay
registry. All assay records are merged from digital files.
Laboratory data are recorded in assay, standards or splits
(duplicates) data tables. Once all records have been received
from the individual sources, the hole data are printed, and
validated by the senior geologist. These paper records are then
stored in a comprehensive filing system.
Assay barcoding
HC drilling
A system utilising barcoding technology has been developed to
track all drill samples from field collection to the assay lab. The
drilling contractors are responsible for the drilling and splitting
olthe hole, whist the collection and submission of RC samples in
the lield is the responsibility of the field assistant workgroup.
Once a KC hole has been completed. and all samples are laid out,
i n order. on the top of the bulk residue, a field assistant enters
information into a handheld barcoder that rccords the name of
the hole, the total depth, and drill hole coordinate information if
required. The barcoder software then calculates the number of
samples and prompts users to scan printed barcode tags at the
41h International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000
beginning and end of each hole, both before and after the tags are
attached to the calico sample bags. The system also has an area
for entry of field-split duplicates and standards. This ensures
correct numbering of sample bags, with no missing bags. and
correct sequencing of the duplicates and standards. The samples
are delivered to sample preparation and the barcoder is returned
t o the office for data downloading and validation against the drill
hole database.
Diamond drilling
The sampling of diamond drill core is handled slightly
differently, as the intervals associated with sampling of core are
irregular, and defined by the geologist. In this case the geologist
logs the core, and defines the sampling intervals in the geological
logging software. When an appropriate point is reached the
sampling information is downloaded to the server, into a
temporary storage area. The sampling information is then written
to the barcode read ready file which is uploaded to the barcoder.
as well as printed out as a cutting sheet. Core is cut and sampled
to these intervals. packaged into calico bags, and barcoded for
submission to the laboratory.
These processes ensure that a chain of custody is established
for all samples from the point of extraction to the point of
delivery to the preparation laboratory.
Quality Assurance and Quality Control (QAQC)
Quality assurance of analytical results is monitored via a
database linked to the assay, standards, and splits tables within
the primary database. Functionality includes plotting of time line
graphs by date range, standard, laboratory, and assay element.
These plots and associated summary printouts arc utilised to
audit assay batches for accuracy and precision of element
analysis. Scatterplots are generated to check duplicate analyses.
Statistics summarising sample and standard submission are
generated in a reporting function. Reporting on a monthly basis
provides up-to-date monitoring of laboratory performance for
management.
Environmental rehabilitation
The geological rehabilitation database (CKD) is a stand-alone
database predominantly utilised on field computers. It records
auditing progress of rehabilitation on all drilling and area
disturbances, including status of tracks. Linking to and updating
from DHDH, drill collar positions are initially populated from
the database records. Field checking is used to provide the audit
details about requirement for further rehabilitation earthworks.
Data such as area of disturbance and nature of soil types are used
to provide a quantitative estimate on cost per item to allow for
calculation of total environmental liability. Maplnfo is used as a
graphical database to record all information related to spatial
information such as tracks and borrows pits.
Invoice reconciliation
The invoice reconciliation database is primarily utilised to record
contract personnel daily or weekly time sheets. Details such as
nature of work and cost codes are utilised to reconcile invoices
against appropriate budget cost centres. The database is used to
provide accurate guides for calculation of end of month accruals,
which are passed to the MIMS system.
Occupational health and safety
An interim system was developed to record details of safety
incidents and injuries. This has recently been migrated to the
newly introduced corporate safety system based on the Site Safe
package and MIMS H R system.
23
R D CARLSON, G R HOWARD and G BACK
QAQC LOSS CONTROL EXAMPLES
Laboratory analytical accuracy and precision case histories are
well documented in a number of recent proceedings and papers
(AuslMM-AIG. 1999; Francois-Bongarcon el (11, 1996; Shaw.
1907). The QAQC system now established at :relfer has a
well-defined role in attempting to lower the risks associated with
ore resource and reserve estimation by ensuring that analytical
data are within specifications. The examples that follow were
discovered following routine checks implemented as part of the
month I y QAQC reporting procedures.
Case 1: Sulphur bias
A sulphur bias was recognised in a number of batches from a
commercial laboratory when checks were run following a
disparity in background levels between close spaced drill holes.
The check results of the sulphur (by mixed acid digest-ICPOES)
were plotted against the original results and found to have a 19
per cenf negative bias (Figure 2). The laboratory was asked to
explain the reasons for the disparity in results, some of which
were from original assaying occurring 18 months earlier. The
laboratory finally found that the batches were biased by the use
of a commercial de-flocculant used in settling of sediments prior
to ICP analysis. The de-flocculant was originally checked for all
metals such as gold and base metals prior to use in the
laboratory, however, sulphur was not included in the analysis.
Thus depending on the concentration of the de-flocculant, levels
of 200 - 2000 ppm S were introduced to the analyte. The
laboratory was asked to re-calculate sulphur levels for all batches
effected by the usc of that particular de-flocculant, which
involved data files over a period of approximately 12 months.
These data were supplied and re-inserted into the database. This
highlights the need to be vigilant on all elements utilised in
resource estimation. not just the primary drivers such as gold or
copper.
Re-assay of drillhole sample S-ICP results
Original S-ICP (ppm)
Newcrest Mining Limited
FIG2 - Re-assay of drill hole sample S-ICP results
24 Coolurn. Qld. 14
Case 2: Lab sample handling error
A batch of results from a diamond drill hole was returned with
incorrect multi-element values for the inserted standards. l h e
gold values were all within acceptable limits but the
multi-element 1CP suite (ie Cu, As. S. N i , Pb. Zn) all lacked any
correlation to the expected results. The laboratory investigated
the causes and found that an operator had not followcd correct
pulp handling procedures. A procedure has hecn cstablLshed with
the laboratory, that 150 pulps were to have wet sizing analysis
completed to check grinding adequacy. The laboratory had ;I
policy that if the 50th sample was a low weight sample. the
following sample was chosen instead. This procedure was
apparently incorrectly applied to thc weighing out of the wet
chemistry pulp. The operator came across low weight samples
(in this case always a standard), and took the following sample
and placed the weighed pulp from it into the test tribe for the
preceding sample. Thus, every standard had the multi-clement
results from the following sample. This procedural error would
not have been detected without checking the multi-elcrnent
signature o f the standards.
CONCLUSIONS
The systems established at Telfer arc examples of loss control
mechanisms. All data generated by the Geology Department (eg
drill company performance. assay accuracy and precision, or
safety incident reporting) have the potential t o identify areas for
improvement in costs, safety, and reserve or resource
estimations. The systems developed for Telfer Gold Mine
provide relevant information for management of key
performance indicators.
- 17 May 2000 4th International Mining Geology Conference
 SYSTEMS AND PROTOCOLS OF GEOLOGICAL INFORMATION MANAGEMENT

ACKNOWLEDGEMENTS Howard. G R, Hansen, T, Moore, C. Mofitt, P, Inglis. K. Carlson, R D,

l h i s pnpcr is published with the permission of the CEO of
h'ewcrest Mining Limited.
REFERENCES
AuslMM - AIG. 1999. Good Project - Wrong Assays: Getting samplc
preparation and assaying right! Australasian Institute of Mining and
Me1:illurgy and Australian Institute of Geoscientists (AIG
Publication No 27).
DNV. 1999. 2 Day Leadership Training Manual, Det Norske Veritas
Consultancy Services. Unpublished DNV Training Manual.
Kirchner, 1. Coupland. D. Leary, S and Tornset, A, 2000. Current
geological understanding of the Telfer Gold Mine, WA. in
Proceedings 4rh Internafional Mining Geoloxy Cor$erencc. pp
1.35- I42 (The Australasian Institute of Mining and Metallurgy:
Melbourne).
Francois-Rongarcon. D M. Long, S D and Parker. H M. 1996. Assay
quality assurance - quality control program. Mineral Resources
Development Inc.
Shaw, W J, 1997. Validation of sampling and assaying quality for
bankable feasibility studies. in Proceedings The Kesource Durubu5se
TiJwardsZOO0 (The Australasian Institute of Mining and Metallurgy.
lllawarra Branch: Wollongong).

4th International Mining Geology Conference Coolum. Old. 14 - 17 May 2000 25 I

 I

I
26 Coolum. Old. 14 - 17 May 2000 4th 1nternat;onaJ Mining Geology Conference
Technical Data Management at Porgera
A W Burgess’, J R Foley2, R J Henham3 and A G Shellshear4
ABSTRACT
The Porgera Gold Mine. west of Mt Hapn in I’NG is a large open pit
and underground operation currently producing gold at the rate of almost
one million ounces per year. This deposit has produced some 8.8 million
ounces to-date and has current reserves of 103.4 million tonnes 0 3 . 2 g/t
Au. The Porgera Joint Venture has invested over $AI billion in
infrastructure in this project.
Technical management of this operation involves the interrogation of
some 700 000 metres of diamond drilling, some 50 000 blastholes per
year. and vcry large volurncs o f laboratory. geoiechnical, environmental
and production reporting data.
Over the past seven years this data has been consolidated into a single
centralised. relational database which now acts as the single reference
point for all the technical application systems used for surveying, grade
control. production reporting. deposit evaluation and modelling. Data
transfer to application programs and management systems is controlled
by the centralised database. this process at times involving a two-way,
real-time. binary data transfer.
The benefits of a specialised database application include security and
integrity of the data asset, ease of access. and performance in a multi-user
environment. This replaced fragmented, inconsistent data sets stored
inefficiently as individual. unindexed. variably formatted files associated
with the different application programs.
Most importantly. the databxc has allowed mine management at all
levels to make timely. confident investment. cash flow and optirnisation
decisions as if provides the priniwy link between the deposit and
operational data sets on one hand. and the application programs and
inanagerncnt and performance measurement systems on the other.
This paper discusses the economic value and importance of technical
data in terms of the resource asset and the means by which this data is
being managed and used at l’orgera.
1NTRODUCTION
l h e Porgera gold mine is located in the highlands of Papua New
Guinea, about 179 km west northwest of Mount Hagen and is
owned and opcratcd by the Porgera Joint Venture.
Situated at an elevation of 2500 mctres, the deposit is
associated with oxidised Late Miocene alkalic intrusives of the
Porgera Intrusive Complex (PIC), crnplaced at shallow levels
within Late Cretaceous and Early Tertiary sediments of the
Papuan Platform. Mineralisation has occurred in two stages with
mcsothcrmal and epithermal events.
Mine production has bcen from both underground and open pit
mining and since the decision to mine in 1988, over 8.8 million
ounces of gold has been produced. The majority of this gold is
refractory and associated with pyrite (iron sulphide). Ore
processed in the mill is oxidised using autoclaves, and mixed
with cyanide for extraction, before neutralisation and discharge.
The open pit tleet consists of four O&K RH200 shovels and 3 1
Caterpillar 789 (175 tonne) trucks and associated ancillary
equipment. The current mining procedure at Porgera involves
drilling and blasting ten metre benches. Grade control is carried
I. MAuslMM. Senior Resource Geologist - Porgera Joint Venture,
l’orgera, Enga Province. PNG.
2. MAuslMM. Senior Minc Geologist - Porgera Joint Venture. PO Box
70.50. Cairns QltI4870.
3. MAuslMM. Senior Exploration Geologist - Porgera Joint Venture
4 MAusIMM. Principal - Software Design Consultants PL. 41 Abbey
Sfitet, Foresttlale Old 4 118.
4th International Mining Geology Conference Coolum. Old, 14 - 17 May 2000
out by sampling blast holes, and by determining the ore
categories prior to mining. Production is budgeted to mine
approximately 210 000 tonnes per day.
Published reserves at the end of December 1999 comprise
103.4 million tonnes @ 3.2 g/t. The reserve is contained within a
measured and indicated resource of 166.4 million tonnes @
2.7 g/t (at a 1 .0 g/t Au cut-off). Additional inferred resources of
14.8 million tonnes @ 3.2 g/t Au arc also identified on the
propcrty.
The acquisition cost for obtaining geological, engineering.
geotechnical and environmental datasets required to manage the
various phases of project development are considerable. A
conserveritive estimate of drilling, analysis and testing costs for
the 70 km of drilling to-date is $A60 million.
This resulting technical ‘database’ is the prinimy link between
the deposit itself, and the decisions being made about that
deposit. in an effort to provide a cash flow and to produce a
profit.
The speed, effectiveness and integrity of those decisions will
therefore he affected directly by the accessibility and accuracy of
that data. The inability to access this data with confidence, will
lead to delays, errors and re-work that can affect this cash flow
and profit in very real (and large) terms.
The value of project technical data needs to bc recognised and
consideration given to the cost-effective management of this
data Proper data storage systems empowers project management
to maximise the return on project investment by making timely
and confident operating and investment decisions.
THE ORIGINAL ENVIRONMENT AT PORGERA
As depicted in Figure I , the original environment within the
Porgera Technical Services Department consisted of some 14
application programs which each had specific areas of
functionality. Each application program had its own specific
format requirements and individual data storage using mostly
sequential, unindexed files. This resulted in duplication of data
and data concurrency problems. Performance using the
unindexcd files was poor, with waits of 30 minutes or longer for
the retrieval of assays from a file containing SO0 OOO records
( I 4M) underground holes).
The datasets used were often incomplete and simplified from
the data collected, for example, all lithological mineralogical and
structural descriptions were reduced to 13 two number codes.
Sample numbers were not recorded against assay records making
auditing of results difficult.
The datasets were also often fragmented with for example,
separate files for underground and surface holes.
Often interpreted data rather than the raw data were stored, (eg
downhole surveys and averaged assays) removing the ability to
check the validity of this data. With a formatted dataset file
required by each application program, numerous people had
access to the datasets, which meant the data integrity, and data
security was always in question. Back-up and restoration of the
datasets was limited to the daily system back-ups and no audit
trial or the editing of the numerous copies of data sets and subset
could he maintained.
l h e problems with this original environment commonly
caused delays and errors during project evaluation and
optirnisation.
27
A W HUKGESS. J K FOLEY, R J HENHAM and A G SHELLSHEAK
Fir; I - Data duplication. Iransfer and reformatting between independent applications
INITIAL VISION
The initial vision for the Porgera Technical Data Management
system was to develop a single repository for all technical
datasets; these were to be held within a relational database. This
database was to serve data to all application programs in the
required format and provide a multi-user access across the
Technical Services network.
Data accuracy was to be achieved by validation during data
entry while the integrity of the data was to be maintained by
various database tools. Electronic data transfer into the database
and between application programs was to bc used wherever
possible.
The system was to provide for high levels of data security,
performance, availability, stability, and possess good audit and
recovery functions.
Design and implementation of the system was to be modular to
enable a staged development; and to be documented at each of
these stages.
Management commitment was required to provide adequate
resources in terms of staff and or consultants, money, time,
hardware, software and training.
The Porgera Joint Venture’s management commitment to the
project was strong; hardware was upgraded, and two lngres
database developments initially approved, being a production
reporting system and diamond drill hole database. Funds were
provided for the project to be developed and implemented by
consultants to the specifications of site personnel.
28 Coolurn. Old. 14 - 17 May 2000
TECHNICAL APPROACH TO DEVELOPMENT
AND IMPLEMENTATION
Following completion of a vision for the project and the
definition of the broad specification, an evaluation was
performed firstly as to the conceptual model around which to
build the system, and then an evaluation of the tools available
with which to achieve this.
On consideration of the major duplication and reformatting
tasks inherent in the existing system. Consideration was first
given to a fully integrated system. By this is meant the adoption
of a major proprietary system such as Datamine, Vulcan, Med
Systems or Mincom system, within which all data storage and
manipulation would be performcd. This was subsequently
christened the ‘Swiss army knife’ approach, alluding to the
attempt to find a single system that could be made t o perform all
tasks required of the applications. Figure 2 schematically
represents this approach.
It was quickly discovered however, that there were many
application packages already in use on-site, several of which had
merit in some area or other. Like a Swiss army knife, i t was
discovered that single integrated systems did many tasks in a
passable manner, but did few individual tasks to the same level of
capability as the specialist packages the mine was currently
using.
The model that was finally adopted was the centralised
database model, as depicted in Figure 3. Here all tasks related to
management of the data are removed from the individual
41h International Mining Geology Conference
 TECHNICAL DATA MANAGEMENT AT PORGERA

.. .-- - - - - - -. -- .- .- - - - - - - - - .- - - - - -. - -. .- -

SclteduJing
- I
Drillhole Data Lon and I

i Management ShojTerm
- - - - - Scheduling
- -
'
- --.- -- -
Surface Data
Acme -1
Integrated
----_
~

I A plication ,
'-
Etrtjro_nmentgl !&ion I

Environmental ,

cploducrinn_!
I I Geotechnical Grade
Control ,
- - - _

- - .- - - - .- - - -- - -. - -- - - I

i 2 - Fully integrated 'one size fits all' applicaiion.

h
- -. - -- - - - - - - -

1- Evaluatik.1
- .-

LEwIuatim i I Statistical ' .-1 - De&- 1 I

I I Resources 1 Analsis ! Pit Design i
and I and
'I- Reserves -
- Optirnisation
I A I -
I
I
iEx&mti&n -!
\-
!
Drillhole Data
Management
- -. - .- -
I v
I

../f f !!
Lon and

Scheduling
Shor?Term iI
!
!

I
I ;- Exp&mf&n
SurfaceData I
J
q - .........
--
'"' -------._

---P Survey II Su%Ying- !

i
'
I
I '-
Evaluation
- -
- . - - -.....
- ---
~
.-
Pickupand
Layout I
-
Database ~
.- -.

7---
.___
!
gnvibnmenaf ~- .- - -- -..-
_-- V I Storage ..-...-- ._ I -. sKrveying-[ ~

! Environmental !
'
. A CAD
I Monitoring I Drafting
1 1 . .
I
.- A -. -. . ..- -
I /

I Geotechnical
Monitoring , Control
.- .- - -_
I

! Reconciliation
V
I PrLducKon
.-
Laboratory 1 I
Functions L. Prmiuction-.! I Data
-. -. - i j Production I I Management-
Reporting I
. -. .- .
-- -- -- .- _- - - - -- .- - - -. - - - - - .- -

Pi(; 3 - Applications accessing a centralised data repository.

4th Inlernatlonal Mining Geology Conference Coolurn. Old, 14 - 17 May 2000 29 I

 A W HUKGESS. J R FOLEY. K J HENHAM and A G SHELLSHEAR
’ application packages, and vested in a centralised custom-built
database management system. This central system then serves
data in the required format to the application packages on
demand.
In some C;ISCS, the application packages then pass new or
derived data back to the database for storage.
In order to achieve this, a competent relational database
management system was seen as a crucial central tool for the
development. Computer Associates Ingres was the database
system chosen for the task, primarily because it had already
proved to be a very efficient, robust and reliable system at other
Placer sites.
Database design
Design of the database has been evolutionary, with modifications
and additions made as the project progressed. Management of the
database design has mostly been through the use of Visio
Professional, a systems design and documentation tool. Rigid
adherence to the majority of practices common to relational
database design has been important.
Development environment
The system was implemented primarily in a Unix based
environment, with lngres installed on a Unix server. While all of
the databases can be accessed from the PC environment, all
database management is entrusted to the Server. Two
environments were established, one for development and a
second for the production databases, allowing development to
proceed without any chance of interfering with the ‘real’ data.
Occasionally a third ‘acceptance’ environment is used to allow
users to test new systems independently of the other two
environments.
The database applications have been developed using the
lngres ABF application development environment. While this
has now been superceded by the OpenKoad graphical
environment, Porgera have felt that the very stable and efficient
character based environment offered by ABF is worth staying
with.
The majority of the systems are written in the 4GL language of
the lngres database management system, and while this is an
older ‘character based’ language, it is fully mouse-driven. In
certain situations dictated by size or complexity, ‘C’ or ‘C++’ is
used for performance reasons; this is however completely
encased in the Ingres environment and the application providing
a single integrated interface for the users.
Development of one of the newer modules has been done in
PowerBuilder, a new database independent CUI development
environment. This application still sits over the Ingres database.
Development strategy
A modular development strategy has been used throughout the
project. Following definition of the initial vision, discrete
modules, for example the Blasthole Grade Control Module, were
I
specified and developed and commissioned. This removed the
, requirement for a large up front commitment on the part of
management, allowing the success of each module to become
justification for the continued development effort.
Data entry
Data entry for the system is achieved through three mechanisms:
conventional screen based manual data entry, with real-time
validation as appropriate;
electronic transfer from on-line systems such as the
laboratory, with new data transferred to a temporary
transaction table for validation prior to posting to the
database; and
I
30 Coolurn, Old, 14 - 17 May 2000
transfer from other application systems such as Datamine
and the Placer OP system, again by transfer to 21 temporary
transaction file.
This data transfer is effected in a variety of formats. both
ASCII and binary, dependent upon the source system.
Validation and database integrity
Management of the data once in the database is eflected by a
variety of tools including:
manual data editing screens. related to the original data entry
screens, again with real time validation;
batch or on request validation tools designed to check the
various database tables for things such as code validity, range
checks, referential integrity and redundant codes;
0 tools to prevent inadvertent or intentional corruption of the
data through the implementation of database rules.
procedures, events and triggers;
internal database security through restricted access and
privileges assigned on a user, group, object or location basis;
0 protection of the database from system crashes through the
use of rollback recovery, journalling and checkpointing, and
database dumps, in addition to the normal systems backups
performed by the on site systems administrators; and
automation and tracking of the backup functions for the
server systems.
Data manipulation functions
A number of functions are provided for the manipulation of the
data within the database, to provide additional access capabilities
to the data, and derived values. Two examples of this type of
manipulation are the calculation of ‘de-surveyed’ coordinates,
and the addition of attribute tags to geological sample data.
De-surveying involves the calculation of co-ordinate data for
drill hole samples from the hole collar, down-hole surveys, and
sample depth. This trigonometrical exercise was previously
performed in an external package, which was a very slow task.
Tagging involves using the de-surveyed coordinates in
conjunction with the wireframe models in Datamine fo determine
the inclusion or otherwise of samples within various structural.
geological, geotechnical or mining domains. This then allows the
data to be segregated for statistical or other purposes. This is
achieved by passing a binary file to Datamine. in the Datamine
native format, for ‘tagging’, with the resultant tags returned lo
the database for storage against the individual samples.
These two capabilities are proving very powerful tools for data
management and evaluation.
Reporting functions
A large number of standard selective reports are provided by the
system for retrieval of hard copy data for a variety of purposes.
Additionally SQL can be used for ‘ad hoc’ reports for special
purposes.
Exporflrnport functions
In order to make use of the data in other applications, three
classes of export mechanisms have been constructed.
Conventional ASCII data export is provided through CSV or
Tab delimited files. This is accomplished through a series of
custom functions available through the system menus, and
through the use of ad hoc SQL queries.
Special routines have been provided to write binary data files
in the individual applications native format directly from the
database. An example is the Datamine binary de-surveyed
format, which can be used directly and immediately by
Datamine, circumventing the time consuming data import, merge
4th International Mining Geology Conference

and de-survey functions normally required by Datamine. This
has reduced a four-hour process to around ten minutes.
Live links are also provided to data in the database, which
effectively removes the need to export the data in the first place.
A simple example is the ODBC access to the lngres database
from Excel for graphical display. A more serious example is the
linking of the blast hole grade control system in Datamine to the
blast holes stored i n the Ingrcs database.
Development management
The following factors and activities were considered important
for the development exercise.
Formal development management. The project was
managed as formal software development exercise through
detailed specification and design of the overall framework
and conventional functional modules.
New technology prototyping. A prototyping approach was
used in many areas to investigate use of new technologies.
Broad involvement. Involvement of many staff members in
the design, testing and implementation.
Standards and procedures. Development and testing
procedures were developed and followed. Formal
dcvelopment standards were used io ensure consistency,
maintainability and robustness of the software developed.
Documentation standards. Documented standards ensured
a11 documentation (hard copy and on-line) would follow a
consistent, professional format.
SYSTEM DEVELOPMENT TO-DATE
The Technical Services Departments involvement in relational
databases commenced in 1994 with the development of a
Production Reporting System for both the surface and
underground operations.
This system, along with the others discussed below, now
constitute the data management environment in daily use for
production planning, control, reporting and data management. In
addition, live links between the database systems and the
graphical display tools such as Datamine allow immediate
visualisation of the new data coming into the systems.
Since 1994 the following database functions have been added
in a staged modular fashion.
Grade control database (MARVIN)
Management of blasthole and related data for use by the
Datamine Grade Control System is the purpose of this module. It
is used constantly as the primary tool for monitoring pit activities
pertaining to grade control. and planning daily mining tasks.
The database currently contains some 500 000 blastholes
which is increasing by around 50000 holes per year. The
Database maintains a live link lo the Datamine grade control
program and includes a blasthole sample quality control system.
A holding file is used for temporary storage of assay tiles from
the site laboratory so that matching to the blast hole location
using the sample number occurs prior to updating of the primary
assay table. The same approach to the verification of assays is
used in DDI-IS database.
All database storage and validation is done in Ingres and all
manipulation and interactive design is done in I)ataminc/Guide.
The menus controlling flow through the system are implemented
i n a consistent working environment aiding training and provide
intuitive usage.
Benches are selectively exported directly to Datamine via
binary files for direct import into the mining software. This has
resulted i n a large performance increase compared to working
with the entire dataset in a non-relational database.
4th international Minmg Geology Conference Coolurn. Old. 14 - 17 May 2000
TECHNICAL DATA MANAGEMENT AT PORGERA
DDHS database (WANTOK)
Used by all of the exploration, reserve and mine planning staff,
the drill hole database is the cornerstone of the overall system.
Links between this and the other modules, and other evaluation
tools forms the basis for all of the text based and graphical
reporting and appraisal activities.
This is the largest module, and comprises a repository for all
drill hole data for exploration, reserves and production control
functions. Currently contains some 700 000 metres of largely
diamond drill core.
Real time validation of codes and depths of manually entered
lithology logs occurs at data entry. Menu functions are run on a
monthly basis to enable table referential integrity checking, ie
depth matching of collar, assay and lithology tables.
Both measured and interpreted values for collar survey and
downhole survey locations are stored to provide a audit trail of
modifications.
Features include internal de-surveying functions and sample
tagging against Datamine model domain and structure
wireframes.
Wireframe tagging provides a powerful means of relating
geological, geotechnical and metallurgical interpretations to the
spatial distribution of blasthole and drill hole samples. Sample
information together with their tagged attributes can he exported
for use in gcostatsical, resource, and other application program
requirements. As interpretations change the new set of
wireframes generated are used in the tagging module to update
all relevant databases.
Geotechnical database (ITAMBU)
A more recent module for management of all on-site
geotechnical data, it includes the storage of orientated core and
traverse mapping information. Database interaction with Excel to
produce graphs, scatter plots, etc. Export of data for stereonet
and Dips application programs is catered for.
Acid rock drainage database (DIDIMAN)
Acid rock drainage is a significant environmental management
issue at the minesite. This module provides storage functions for
all geochemical and acid based accounting data, for
environmental management use. Using the spatial tagging
described above. the ARD data can be extracted by domain. to
help model the optimum waste dump destinations for the
material being mined. This data included multi-elements and
acid based accounting analyses such as net acid neutralisation
and pH ranges.
Sample numbers arc cross-indexed with drill hole information
lo allow spatial location (necessary for modelling). Selective
reports of individual holes or data identified above key values
can be exported from the database for analysis in visual
programs such as Guide or imported into statistical software for
analysis.
Drilling management system (DRILLRODS)
In order to provide an example of a development that provides
management information. this module will be discussed in more
detail. The Drilling Management System consists of the
following functional components:
new drill program and hole planning;
0 tracking of the drill hole preparation, including drill pad
set-out, allocation of holes to drill rigs. drill rig movement
and setup;
0 tracking of the drilling progress for current drill holes. rig
plod sheets, consumables, time-sheets and performance
monitoring;
31
AW HUKGESS, J K FOLEY. R J HENHAM and A G SHELLSHEAR
management and tracking of drill hole logging and sampling
activities, including lithological logging, summary logging,
geotechnical logging, sampling. sample remainder storage,
core photography and downhole geophysical logging; and
collar and down hole survey management and adjustment;
0 sample management and tracking of laboratory assays;
0 monitoring of data entry progress for the geological
database;
reporting functions for program management, including
periodical progress reporting, backlog reporting for all
aspects of the management role, performance analysis, and
identification of problems such as mismatches in sample
numbers and lost samples:
custom functions for such things as calculation of significant
intersections; and
utility functions for maintenance of the system, including
security and integrity of the system, access control, and
maintenance of reference tables for validation.
The monitoring of drill rig performance has improved the
metres drilled against budget by 140 per cent. This system has
enabled a team of six geologists and 12 support staff to manage
some 90 OOO m/annum.
Production reporting (MARKZ)
Reporting of open pit and underground production. The system
uses a database within the Modular Mining system and replaces
the original lngres production reporting system that had been in
service for the past eight years.
Reserves database (DOUG)
Prototype built to provide database for storage of Reserves Block
Models and related data to allow selective interrogation and
retrieval by a variety of systems and users.
Reconciliation (GRAVEYARD)
Reconciliation of grade control, mill and production data,
currently under development. A prototype of this system
currently in use has proved very successful in quickly identifying
some problems such as material allocation and stockpile
managemcnl.
Utilities functions (ERIC)
A collection of functions to aid different management areas; for
example management of core storage, lab coarse reject and pulp
sample storage, and database integrity checking. The spatial
tagging of wire-frames against samples allows the rapid
identification of samples and core for retrieval and further test
work.
FUTURE DEVELOPMENT PLANS
PJV has recently upgraded its accounting and supply systems
management to the JD Edwards package, and the intention is to
interface with this package and similar non-technical databases.
Rover GPS systems have been proposed to download survey
and hole information in the field. This system is envisaged to use
a bar-code reader mounted to the GPS system being carried by a
geologist or geological technician. Scanning a tablet of options
can accurately enter bole sample number, lithology and sample
quality control data. Upon return to the office download of this
data would eliminate transcription errors and delays. Sample
dispatch forms can be automated from the sample numbers for
transfer to the assay laboratory system.
32 Coolum. Qld. 14 - 17 May 2000
We intend to investigate Object Oriented Multi-Media
Database technologies for use in storage of a broader range of
data such as; core photography, geophysical logs. technical
drawings and PIMA traces. etc.
In addition. the application o f new hardware technologies.
scanning, fibre channel architecture disk arrays will be reviewed.
BENEFITS
The single most significant benefit has been the centr;ilisation of
the technical data to a single, secure, robust and reliable
repository with a relational database.
Following are a list of some of the specific benefits deriving
from the project to-date:
0 Kea1 time functions for linking databases with other systems
(eg Datamine Grade Control), along with export functions
lor passing data to other systems (cg Excel Graphing. OP
system) are broadly used, and saving significant times in
reporting tasks.
0 Integration of departmental data sources has seen a dramatic
reduction in data entry and maintenance requirements, which
now involves two to three people rather than eight to ten.
0 High security of the data has prevented many of the ‘nasty
little accidents’ that used to happen.
0 Very high availability and stability of the databases takes the
worry out of reporting.
0 Good access to data for other projects.
0 Restored confidence in data and in the evaluations derived
from that data.
0 Dramatically improved performance is saving significant
time. An example is the Datamine drill hole de-survey
process of loading drill hole collars, surveys, assays and
lithology records into Datamine and then generating a
de-surveyed XYZ binary file for Datamine display, a process
which used to take about eight hours. The new database
I
system now writes this binary file directly in ten minutes
0 Allows technical staff to become more powerful data
analysers rather than data gatherers and managers.
LESSONS LEARNED
0 Understand the value of your technical data, and recognise i t
is the primary link to your single major asset (the resource).
0 Ensure management support for the project.
0 Establish an initial overall vision, but approach the project in
a modular manner, using the S U C C ~ S S C Sand lessons of each
stage to improve the system development.
0 Make sure the project remains focussed on the practical
requirements of the project, on developing systems that are
of real use and value to the production and management staff.
0 Continue to investigate new technologies, but make an
objective evaluation. Only embrace those that have a
demonstrable practical application to your operation; don’t
fall into the trap of using technology for technologies sake.
0 Don’t reinvent the wheel by trying to build into the database
functionality that is better (and less expensively) handled by
third party application packages. Instead, build interfaces to
allow these packages to access the data they need directly
from your database.
0 Chose a serious database package, and serious hardware to
allow performance, reliability, security and room to grow,
because i t will! In reality, the price of the DBMS software
and the hardware will be only a small fraction of the total
cost of the development. implementation, data transfer and
training, so the choice of good tools is not going to blow the
project budget.
4th International Mining Geology Conference

Invest in training for staff to allow them to use these
resources to their true c;ipacity.
Ensure that the projects are managed in the way any other
serious project would be managed: make sure you use people
with the relevant training and experience for the projects. Too
many similar projects fail because they are simply thrown at
3 junior mining engineer o r geologist without access to the
real skill required.
CONCLUSIONS
The PJV Technical Ihtahase System has proved invaluable in
increasing the ahility to utilise valuable technical data sets
Located data [hat has been validated and cross-referenced with
other variables and can be extracted automatically or constrained
by user queries for various data types or areas to be modelled.
I t allowed a degree of integration between the central database
and mining software. and a level of funciioilality that could not
be achieved i n any other lashion.
4th International Mining Geology Conference Coolum. Old. 14 - 17 May 2000
TECHNICAL DATA MANAGEMENT AT PORGERA
The investment in the development of technical database
management at Porgera has seen real productivity gains within
the operation. firstly directly, in allowing technicians to perform
technical and management tasks better, and secondly resulting in
an optimisation in the way in which the resource is managed and
mined. This second benefit is the one that pays the big dividends,
far overshadowing the smaller savings in mine engineers or
geologists time.
The results have exceeded our expectations and allowed PJV
to get on with the job of finding and producing more ounces at
less cost from what must be considered one of the world’s top
gold deposits.
REFERENCES
Rock. N M S and Finlayson, E J. 1990. Petrological affinities of intrusive
rocks associated with the giant mesothermal gold deposit at Porgera.
Papua New Guinea. Jotcnicil of Sourh Asicin Eorrh Science.v.
4(3):247-257.
Fleming. A W. Handley. G A. Williams, K L. Hills A L and Corbett. G 1.
1986. The Porgera Deposit. Papua New Guinea. Lconouiic Geolog)!
8 I :660-680.
33
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34 Coolurn. Old. 14 - 17 May 2000 4th International Mining Geology Conference
Sampling Practice at Vera Nancy Gold Mine
D Sims'
ABSTRACT
The efficient and profit-niarimising daily and long-term rnanagement of
fhe Vera Nancy resource depends on decisions based upon assay data.
This paper examines the range of sample sources. the methods of sample
collection. assay techniques and Quality Assurance used by the mine.
The orebody has a relatively low nugget effect for a gold mine (around
25 per cent) and this greatly assists in reducing sampling error and
producing reliable assay data for production decision-making.
llrconciliation between mine and back-calculated mill grades general+
sees the mine under-calling mill grades by around four per cent.
INTRODUCTION
The Pajingo Joint Venture (SO per cent Battle Mountain Australia
Ltd and SO pcr cent Normandy Mining Lid) owns the Vera Nancy
underground gold mine located approximately 53 km SSE of
Charters Towers in North Queensland. Normandy Mining Ltd
manage the operation on behalf of the partnership. Vera Nancy is
one set of deposits in a precious metal epithermal field which
covers 1 SO square kilometres of sporadically outcropping
auriferous quartz veins hosted by Drummond Basin volcanics
(Porter, 1990).
Thc field was discovered by Battle Mountain Australia in 1983
with two deposits (Scott Lode - which produced approximately
360 000 oz Au/l 000 000 0% Ag and Cindy - which produced
approxirnatcly 46 000 ox A d 2 5 000 oz Ag) mined between I987
- 1994. The Vera Nancy mineralised trend was recognised in
October 1994 and deep drilling in mid 1995 intersected
significant 'ore grade' material. (Evans and Jones, 1997;
Richards er nl, 1998).
By mid-1996 surface drilling on a 40 by 40 metre spacing had
delineated an lnfcrrcd Resource of I .7 Mt at 14 glt Au to a depth
of 400 metres over a I .S kin strike length. 'This was considered
sulficient for the joint venture partners to proceed with
self-funded mine development and infill underground drilling in
advance of production at a scheduled rate of 220 000 Uyr to
produce 90 000 oz Au and 100 000 oz of Ag annually. A twin
decline access was developed along a 1.4 km strike length and
definition of the orebodies commenced with 20 by 20 metre
underground infill drilling and ore driving to establish bench
s t o p s . Full-scale production was reached i n August 1997 at a
capital expenditure of $49.3 M (McKinstry, 1998). A review of
mine production rates during 1998-99 resulted in a mill
expansion completed in October 1999 which increased mill
capacity to 500 000 Uyr. At this higher rate the project will
produce in excess of 200 000 0% Au per annum. The mill is
located 4 km from the mine portal.
This paper refers to the on-going resource definition and grade
control sampling work undertaken on the Nancy, Vera and Nancy
North orebodies from March 1907. Thc methods and processes
used have been developed to suit the nature of the deposits. the
mining methods used and the objective use of the data collected.
DEPOSIT GEOLOGY
The auriferous quartz veins are hosted by andesitic volcantcs
which ;ire part of the Devonian - Carboniferous Drummond
Basin The licld contains deposits of the 'low-sulphidation'
I. MAuslMM. Senior Mine Geologist. Pajingo Joint Venture. PO Box
I27 I.Charters Towers Qltl 4820.
4th InfernafionalMining Geology Conference Coolum. Old. 14 -
epithermal type which have essentially been emplaced along
fault zones consisting of multiple fault planes. Economic
mineralisation occurs exclusively within the quartz veining
(Figure I). Gold grade can drop from 'ounce-plus' values in
quartz to 0.01 g/t AU in andesite across a knife-sharp vein
contact.
Being fault zones the structures which host the veins exhibit
bends, kinks and splays both along strike and down dip (Figure
2). Four deposits have been outlined along the NW - S E strike of
the structure ranging in the north from Nancy North, then Nancy,
then Vera and finally Vera South (Figure 3). Oxidisation extends
to around 70 m from surface and does not have a significant
effect on the orebodies although some zones of deeper
weathering occur within the upper parts of each deposit.
Mineralisation occurs dominantly as amalgams of gold and
silver (electrum approximately 1:l ratio) occurring as fine
disseminated grains within quartdcarbonate veins. Precious
metal grain size averages around 40 microns with a range from
5 to 150 microns and is generally not visible to the naked eye.
The mineralised veins commonly contain traces of pyrite (<2 per
cent) and/or other rare sulphidcs as accessory minerals. Adularia
is absent while the main carbonates are ferroan in composition.
Alteration mineralogy in and around the quartz veins includes
silica, pyrite, chlorite, carbonate, sericite and haematite.
Movement on the faults during mineralisation allowed dilation
leading to depressurisation, mixing and boiling of gold/silver
bearing fluids within the structures. The veins contain abundant
epithermal textures such as collofordcrustiform banding,
brecciation and moss texture. Dark narrow bands within the veins
contain elevated fine grained pyrite content and generally
correspond to localised higher gold/silver grades. Some parts of
the veins are Lones of brecciated mineralised vein material set in
a low-grade or barren silicified matrix.
Vein width ranges between 0.5 and 12 m and veins extend
around 300 m down dip and along a 2100 m strike-length. Where
multiple veins occur generally one vein contains the dominant
proportion of metal. Veins have moderate to steep dips (65" -
90") while widths can vary rapidly along strike with down dip
width continuity being generally more consistent. Second order
veins I O to 20 cm wide commonly splay from the main
structures and can extend one to two metres into the footwall or
hangingwall (Figure la).
Faults that offset the deposits have been encountered in mine
development but are difficult to model from drilling alone.
Strike-slip faults with subhorizontal offsets have been intersected
on some levels and are steeply dipping structures subparallel to
the veins. These faults can cross cut the veins creating barren
pillars or overlapping the vein over short strike lengths. On other
development levels mining has exposed several subparallel
shears on or near the vein contacts which do not seem to directly
affect geometry but influence dilution during stope extraction.
shallowly dipping hults which strike perpendicularly to the
orebodies and steep reverse faults which post-date ore and create
vein overlaps in the eastern end of the Vera deposit. The ore
structures have been re-activated during later tectonic movement
complicating orebody geometry in parts of the system.
Where dip reversal occurs shallower dipping narrow ladder
veins can extend away from the Main Vein for a number of
metres. Drill intersections may overstate vein width in these
areas if the drill path follows along the ladder veins - i t i s
important to note core parallel veins in logging. Vein margins are
17 May 2000 35
 IC I I)

Flc; I - Ore grade quartz vein appearance at Vera Nancy. (a) Nancy 97 I W drive - cut 42. Left vein I .S m wide at 23.5 g/t Au, right veins 0.4 n1 wide at
21.8 g/[ Au, (b) Vera 862W drive - cut 3. Vein I .9 I N wide at 7.7 dt Au. (c) Vera 8628 drive - CUI S. Vein 2.2 rn wide at 36.1 g/t Au.
(d) Vera 862W drive - cut 24. Vein 7.5 m wide at 12.7 g/t Au.

generally well-defined by infill drilling and in general ground
conditions are good.
Metallurgical performance in the CIP plant does not fluctuate
significantly between orebodies. Grinding to an 80 per cent
passing 40 micron particle size ovcrcomes many liberation
problems associated with fine grained gold and recoveries
average around 96 per cent. Higher recoveries occurred when
oxidised ore was fed to the mill during the operation of the Vera
Pit mined on a small 5000 oz resource whilc establishing a portal
for the Vera Decline. Oxidiscd material is no1 present in the
existing resources. Silver recovery is generally poorer than gold
averaging around 80 per cent. Silver is less readily leached than
gold and so forms a residual coating or core on fine electrum
particles which are lost to tail. Also it may be possible that a
separate silver mineral species occurs and is not as well liberated
as electrum during grinding.

36 Coolum, Qld. 14 - 17 May 2000 4th lnternatiorlal Mining Geology Conference

 SAMPLING PRACTICE AT VERA NANCY GOLD MINE

Flci 2 - Mine isometric view showing the arrangerncnt of mincralised fault planes with kinks and splays. Nancy Nonh orebody at rear left.
Vcra South orebody :it front right.

I
:: s

PAJINGO JOINT VENTURE

INSITU REMAINING RESOURCE
--?+ End of June 1999
I) Stptrnibrr 1 9 9 9

Flci 3 - Vera Nancy resource long section

4th International Mining Geology Conference

Coolurn, Old. 14 - 17 May 2000
37

1
D SlMS

The Resourccs/Rcservcs for the deposit as at end June 1999 automated Kamsey sampler which samples the leach feed stream
are as follows (note that Resources include Reserves): from the main thickener at five minute increments to determine a
licsources: feed grade over a 12-hour period. The sampler cuts the entire
stream and produces around 4 kg of sample per shift which is
Measured 0.60 Mt 8.9 g/t Au pulverised and fire assayed using the same commercial
Indicated 1.36 Mt 18.7 g/t Au laboratory as the mine.
Inferred 2.15 Mt 13.8 glt Au
Drill hole sampling
Total 4.20 Mt 14.6 g/t Au
Thc drilling dataset includes surface RC drill holcs (255 holcs for
Reserves: 28.5 km), surface diamond drill holes with RC pre-collars
Proved 0.53 Mi 12.5 glt Au (247 holes for 85.8 km) and underground diamond drill holes
(825 holes for 105.2 km). A total of 80 km of infill underground
Probable 1.59 Mi 13.9 glt Au
core is planned to be drilled on the Vera South deposit.
Total 2.12 Mt 13.6 dt Au Early RC holes used a cross-over sub while later holes used
Classification of resources is based on the following criteria: face sampling hammers. Samples on one metre intervals were
riffle split at the rig for a 3 - 5 kg sample. For parts of holes
Measured 20 by 20 m drilling plus ore drives above and below
which were below the water table the entire sample was collected
the stope block. Sublevel interval is 15 m floor to
and dried then crushed and riffle split for assay. RC chip sample
floor.
trays are retained by the exploration office.
Indicated -
20 by 20 m drilling underground drilling. Smearing of grades in KC holes from the upper part of the
Inferred 4 0 by 40 m drilling - surface drilling. Vera orebody above 160 m depth has become evident from
The resource base is growing as exploration along strike mining drives in these areas in turn leading to a signilicant drop
proves up additional resources most notably at Vera South ( I .96 in contained ounces in this part of the orebody. In these areas
MI at 14.1 g/t Au). infill underground diamond drilling has been undertaken and this
data, along with drive information, overrides KC data in
Critical issues relating to the nature of the orebody and mining modelling. Twinning of RC holes with diamond holes or
method which must be accommodated in sampling and data
submission of the ‘H’ split of RC samples was not undertaken in
collection methodology include:
the program.
the requirement that whole mineralised vein width is to be
Core sizes for the surface drill holes are dominantly HQ but
mined in a way that maximises the grade produced - the
include NQ2 in recent drilling where i t has shown to be
strong geological control on gold distribution confined within
statistically as reliable as the larger size in testing these
the quartz vein necessitates the need for sharp boundary
orebodies. The underground core is drilled in conventional
definition in the sampling data, a task assisted by strong
LTK60 size which delivers approximately NQ sized core from a
visual control;
BQ sized hole. Core recovery is generally very good with only
assay sample precision and accuracy must be maintained minor loss in strong shear zones.
throughout the project particularly around the ore cut-off
Drilling orientation is on sections orthogonal to the
limit (approximately 5 s/t Au);
Vera-Nancy mine grid which is oriented parallel to the strike of
high spatial accuracy requirements due to the high-grade yet the veins (127” magnetic). Local vein flexures can sce the vein
narrow vein widths means that all locational data must be as trend/drill hole intersection angle vary occasionally by 10 - 20”.
accurate as possible; and Some fans of underground holes are drilled skew to the vein
dynamic updates of data and interpretation/modelling are trend due to drill access constraints around the lateral margins
required as the underground drilling and development and lower fringe of the deposit.
programs progress and mine planning proceeds - data All underground holes are Eastman single shot surveyed every
collection and transfer needs to be as streamlined and as 30 m after an initial shot at 12 m depth. Surface holes were
focussed as possible. commonly not initially surveyed until around 60 m depth in the
pre-collar stage and then every 60 m thereafter. Up until 1999,
TYPES OF SAMPLING DATA when non-magnetic RC rods were introduced, only a dip reading
was possible in the RC portion of the hole. Although the ground
Sampling for resource modellinglgrade control occurs in exhibits no discernible magnetic effects the position of surface
dominantly four ways: holes intersected in underground development indicates that
1. on surface diamond drill holes (+ KC holes) during Inferred surface hole location can be out by up to 3 m at the orebody
Resource stage drilling and on underground diamond intersection depth. This is thought to be related to deviation in
drilling when infilling to Indicated and Measured Resource the largely unsurveyed pre-collar and accuracy related to the
status; 60 m survey spacing interval.
2. on mining faces during ore drive development (‘chip’ Recent surface drilling is surveyed at 30 m intervals with
samples); bearing and dip measured in the pre-collar stage. Surface collar
locations are surveyed in while underground collars have been
3. on underground percussion samples and small diameter measured relative to set-up pins at the drill sites which were
core used to tightly infill splay vein positions adjacent to located by the mine surveyor. Geological modelling uses the
ore drives (‘sludge’ or ‘LM22’ samples); and grade data from surface holes but not the locational information.
4. o n truck loads when the ore is transported from All underground diamond drillcore is jig-sawed (reconstituted)
underground drives and stopes and tipped at mine stockpile into continuous lengths S m either side of and through ore zones
sites (‘grab’ samples). prior to logging and sample preparation. A continuous reference
Each of these sample types in a production environment is a line is drawn on the core parallel to the core axis once the core is
blend of theoretical ‘best practice‘ and operational practicality. jig-sawed to provide a uniform cutting line for sawing and
Other sampling undertaken in the mill for metallurgical control systematic sampling once logging is complete and the sampling
purposes will not be discussed in detail. l h e plant uses an intervals are determined.

38 Coolurn. Old. 14 - 17 May 2000 4th Inlernalional Mining Geology Conference


Core is logged and sampled on geological boundaries which
rellect the sharp grade distribution changes. Core is sawn into
two halves after being digitally photographed with the right hand
half assayed and the other retained in core storage. Digital photos
arc saved as JPG files and stored in a UNlX directory on SGI
workstations.
Maximum sample length is limited to I .S m to ensure sample
sizes will allow complete pulverisation of the assay sample
mnterial at the laboratory. Split intervals less than 0.3 m are
generally whole core assayed.
All remaining half core from ore zones. whole core from
hangingwall and footwall zones and representative intersections
o f host andesite are retained in storage racks at the mine core
farm. Geological logging of underground drillcore uses an
Australian barcode-based logging system named ‘DATCOL‘
which delivers a validated ASCII file which is directly loadable
via scripts into the Vulcan drill hole database. Digital core photos
are viewable i n Vulcan during interpretation by clicking on the
displayed hole trace at the desired location which brings up the
relevant photo in a window on the screen.
Development chip samples
Every mining face in the underground ore drives is geologically
mapped and sampled with the boundary and direction of the next
cut marked out. The sampling forms the primary grade control
for ore heading development. Drives are mined on approximately
IS m levels and are 4.5 m high leaving a 10 - I I m high stope
hench between drives. Bench stopes are drilled and fired with
parallel blastholes once the ore drive sampling and mapping has
defined the ore gcomctry for final blast design. Overall around
6 0 . p cent of production comes from bench stopes with the
remainder coming from the drive mining to establish the bench
stopes.
A minimum mining width of 3.5 m applies in ore drives due to
equipment requirements although veins down to 0.5 m wide can
he economically recovered using the ‘resue’ mining method. This
i s where a 2.5 m wide waste cut is mined to the footwall of the
vein and the ore is stripped into the cut once the waste is
removed. Given that the Nancy orcbody has an average
horizontal width of around 2.6 m, control of drive development is
important to minimise hangingwall over-break in stopes due to
undercutting. Drive hangingwalls are optimally kept to a ‘shanty’
profile around 20 cm off the vein hangingwall.
The Vera orebody has higher widths (up to 16 m) where
multiple veins can be mined together. In these instances the
footwall of the vein system is driven with a 5 - 6 m wide drive,
the hangingwall is then sludged or drilled with a truck mounted
LM22 rig on 10 m centres to establish the exact hangingwall
position which is then stripped to full vein width. Drive widths
over 8 m are cablebolted.
As with drill holes the drive faces are subdivided into sampling
intervals based on geology. Chip samples are taken across the
interval at around waste height using a geology hammer and a
triangular sampling hoop to hold the sample bag and catch the
sample. Around 2 - 3 kg of material is collected per sample with
intervals around 0.4 - 1 .5 m long.
Face location is measured relative to survey grade control pegs
and face geology is sketched into a pro-forma mapping sheet
which shows vein and faultkhear geometries and sample
locations. Mapping sheets are later sketched onto mine
cross-sections to aid interpretation and hand digitised into Vulcan
lor stope geology wireframing. Occasional faces are digitally
photographed to assist with mapping. Sampling data is plotted at
1:125 scale and converted into drill hole data for display and
compositing in Vulcan with hole collar and survey data used to
depict the sample location in 31) space.
4th Internalional Mining Geology Conference Coolum, Qld, 14 - 17 May1 2000
SAMPLING I’KACTICE AT V E R A N A N C Y GOLD MINE
Once the ore drive is completed the backs are washed and the
vein contacts marked in paint for 3D pick-up as string data by
mine surveyors. This method was developed at MIM’s McArthur
River mine by Gcoff Phillips. The strings are loaded into
VULCAN to assist in wireframe construction and vein and
structure back mapping is undertaken on a hardcopy of the
pick-up outlines.
Percussion sludge sampling
Sludge samples drilled with underground percussion rigs
(jumbos or blasthole rigs) are collected to assist i n vein boundary
definition and to further infill location and grade information
particularly for flanking veins beside existing drives. Hole sizes
range from 45 mm to 68 mm and samples are collected via a
catcher which attaches to the rig delivering cuttings to a bucket.
Samples consist of 0.5 - 3 mm cuttings are collected over a I m
interval and the entire 3 - 5 kg sample is submitted for assay.
Chips are logged for lithology which is used to check assay data
qualitatively. Sludge holes are also entered into Vulcan.
LM22 core drilling
Work undertaken in 1998 by mine geologist Allan Bell assessed
the validity of sludge samples to properly represent veins which
were later driven or stripped. He found sludging poorly
represented veins commonly overstating both width and grade.
As a result discussions were undertaken with local drilling
contractor Kowe Enterprises (now Roart Longyear Rowe
Enterprises) to source a Toyota mounted light core rig which
could replace sludge holes with core. A reconditioned LM22 rig
was mounted on a trayback vehicle and commissioned drilling
LTK48 core. Holes range up to 30 m in length and the drill hole
collars are surveyed to allow hole entry into the Vulcan drill hole
database. Holes are logged and photographed as per usual but
whole core is assayed rather than half core. Increases in
interpretation reliability has occurred with the shift from
sludging to LM22 drilling. Drilling is commonly undertaken in
campaigns of 500 - 1000 m.
Truck grab samples
Grab samples are collected on surface stockpiles to calculate ore
classifications and mill feed grades for both development and
stope material. Material is not moved from the stockpile bays
until it is sampled and the results returned. Truck dumps are
either 30 or 21 tomes (Bell R40/B30 trucks) and the day’s
production from each source is trucked to a separate stockpile
bay at the two mine portals for sampling. The grab assay results
are averaged per bay to determine the mean grade of the material
while the tonnage is factored by the number and size of the
dumps. Daily production ranges between 1400 - 2200 t of ore
and low-grade material.
A garden trowel is used to collect around 3.5 kg of material
from around and over each dump taking at least five increments.
Any particle which sits on the trowel is sampled. It is realised
that this method is significantly prone to sampling error and in
particular biases fine material. It is expected a brittle and
well-fragmenting quartz vein should lead to overestimating of
grab grades where host andesite may constitute coarse fragments
although in general grab samples underestimate the mill grade
(see below).
SAMPLE PREPARATION AND ASSAY
TECHNIQUES
Preparation and analysis is identical for all samples types. A
commercial laboratory located in Charters Towers is used for thc
work.
39
 1) SlMS

I Preparation involves jaw crushing to reduce to -2.5 mm then
pulverisation of the entire sample to -75 microns by LM5 mill. I f
any samples are greater than around 3.5 kg then the sample is
jaw crushed and riffle split before pulverisation. A 50 g charge of
material is assayed for gold by lire assay methods (ALS Chemex
method PM209) and for drillcore samples a 200 g pulp is
retained and returned to site. One in ten gold assays are repeated
by taking a second SO g charge. Silver is assayed i n core samples
only by an AAS method (ALS Chemex method G001) with
repeats in higher grade samples (>SO ppm) undertaken a1 a
different dilution (ALS Chemex method A101).
Samples are delivered at the end of dayshifvnightshift and
results are returned within 15 hours for chip and grab samples
while core and sludge samples return in two to four days.
In-house standards are submitted with every drillcore batch
with a series of I2 standards prepared from Vera Nancy ores over
a range of grades. The values of the standards were determined
by analysis by eight separate laboratories. Standards are given a
coded identifier at submission for disguise.
PRECISION, ACCURACY AND THE NUGGET
EFFECT
Quality Assurance focuses on assessing assay precision using
repeatability and accuracy using standards.
Repeatability is a function of preparation and assay process
quality and how evenly the gold is distributed in the ore ('nugget
elfect'). Vera Nancy ore contains very fine grained gold and
pulverisation homogenises the gold throughout the sample
reasonably well. Plots of repeat gold analysis data for core. chip
and grab samples and repeat silver analysis data for core samples
are shown in Figure 4.Statistics for this data are contained in
Table 1.
Precision for gold assays is within industry standards and
certainly acceptable although repeatability for grades <0 04 glt
Au is understandably poor. The high correlation coeflicients and
tight plots indicate that Vera Nancy is a relatively low nugget
gold orebody. Variography undertaken for grade estimation
indicates a nugget in the order of 25 per cent. The low nugget
factor greatly assists in reducing sampling error and producing
reliable assay data for production decision-making.

Core sample repeats Au Core sample repeats Ag

202 pairs
2140--pairs --
250 I 1 7 450 -I -i
!
~-
I
~

+ I
200 -- I -' I
! + +-
I
I I

50 150 250 350 450

0 50 100 150 200 250
A!3
Au

Chip sample repeats Au Grab sample repeats Au

250 I -
210 pairs
I I
80 T-
- 262- airs,
P'-
I

200 -;--
I
-1
_ .
I

0 50 100 150 200 250 0 20 40 60 80

AU AU

Rc; 4 - Assay precision repeat plols

40 Coolum. Qld. 14 - 17 May 2000 4 i h International Mining Geology Conference

 SAMPLING PRACTICE AT VERA N A N C Y G O L D MINE

-.

COMPARISON LAB ASSAY VS STANDARD II

40.00 .I I !
I
!
... ~-

, . . ., I
~ ++% diff
-Linear (% diff) !
I I

. . . ~ - . - . I

! 1 51 101 151 201 251

i ... ~. __
standard result arranged cronologically
. . ~

Fici 5 - Assay accuracy drift.

Precision on silver assays are less impressive largely because
of the fact that silver repeats are generally only undertaken on
high-grade samples ( > S O 4 g/t Ag) using a different
analyticaVdigestion method which gives higher values. Although
silver is a valuable by-product i t is not as critical as gold to the
profitability of the operation hence poorer precision with the data
is acceptable.
Assessment of accuracy is undertaken by the submission of
two standards with each drill core sample dispatch (generally a
group of 20 - 30 samples). The results from each standard is
inspected by the relevant geologist when hard copy preliminary
assay results are faxed from the laboratory. The values returned
need to he less than 210 per cent of the standard value for the
batch to be accepted. If values indicate that multiple batches are
returning with accuracy poorer than 25 per cent of the standard
value then the geological superintendent is notified who
discusses the problem with the laboratory manager. In general
accuracy is within +S per cent with the laboratory most
commonly under-quoting the grade. A plot through 1999
indicates an accuracy drift whereby the value of returned assays
has been below 'real values' in the early part of the year drifting
to a more accurate figure at the end of the year (Figure 5 ) .
Discussions with the laboratory can be undertaken based on firm
data.
MINE TO MILL RECONCILLIATIONS
Four product types are produced from the Vera Nancy mine for
either mill feed or stockpile:
'high-grade ore' - greater than 20.0 g/t Au (milled);
'ore' - S.0to 20.0 dt Au (milled);
'low-grade' - 1.0 to S.O dt Au (stockpile at mill - to be milled
after mine closure); and
'marginal' - 0.3 to 1 .O g/t Au (stockpile at mine).
Reconciliations for mine ore production to the end of the
December 1999 indicated that the Reserve overstated the tonnage
by nine per cent and understated the grade by eight per cent
compared to production. Around 99 per cent of Reserve gold
ounces were produced. Production of low-grade material for the
same period saw the Reserve tonnage exceeded by 19 per cent
and the grade figures exceeded by IS per cent with production
containing 137 per cent of Reserve 'contained' ounces.

4th International Mining Geology Conference Coolum, Old, 14 - 17 May 2000 41

 I D SlMS
The mined grade for this period was 13.4 g/t Au compared to a
milled grade of 14.0 gh Au. Although general assay accuracy
may be a contributing factor to the undercall on grade i t is
believed that grade estimation methodology also has an
influence.
The Resource estimate interpolation method used to produce
the Keserve figures for last year utilised Inverse Distance
Weighting methods. Calibrating the global figure for the Nancy
orebody against Indicator Kriging (IK) methods proved
satisfactory although techniques which will produce a better
local estimate (such as IK) in production situations arc being
investigated.
CONCLUSION
Vcra Nancy is a high-grade mine which requires accurate mining
to maintain management's objective of maximising the head
grade Quality sampling information is a significant contributor
I to achieving this aim in mine management and is strongly
assisted by good visual control on grade distribution and a low
nugget factor in the ore.
42 Coolum. Old. 14 . 17 May 2000
Mining at Vera Nancy is to undergo an expansion program
which will see production raised to around 500 000 Uyr to
produce in excess of 200 000 oz per year. Continued use of
sound and practical sampling processes will be required to
manage the operation into the future.
REFERENCES
Evans. R C and Jones. B H, 1997. The Discovery and evaluation of the
Vera-Nancy deposit. North Queensland. in Proceedings IVorld Gold
'97 Coriference. pp 233 - 237 (The Australasian Institute of Mining
and Metallurgy: Melhourne).
McKinstry. 1. 1998. The methodology behind the development of the
Vera Nancy mine. in Proceedings Se\.erirli Uriderground 0pcrmor.v'
Conference, pp 217 - 219 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Porter, R G. 1990. Pajingo Gold Deposits. in Geology of the M i n e r d
f k p o s i r s ofAusrruhu und Pupuu New Guineu (Ed: F E Hughes). pp
1483 - 1487 (The Australasian Institute of Mining and Metallurgy:
Melbourne).
Kichards, I1K, Elliott. G J and Jones B H, 1998. Vera North and Nancy
gold deposits, Pajingo. in Geoloxy of Austrulitui urid f'upuu New
Guineuri Minerul Deposits (Eds: D A Berkman and D H Mackenzie).
pp 68.5-690 (The Australasian Institute of Mining and Metallurgy:
Me1bo ume).
4th International Mining Geology Conference
Leachwell* Versus Fire Assay: Comments from Assay Quality
Assurance at Tarmoola Gold Mine
D J Elder’
ABSTRACT
A fundamental component o f grade control :it Tarmoola Mine has been
the monitoring of assaying through quality assurance programs. The
programs have concentrated on issues related to accuracy and precision
of leachwell and fire assay techniques, sample preparation and grade
variability within a sample. An outcome of monitoring has been
identification of shortcomings in the application of assaying techniques
to Tarmoola ore types that contain coarse particulate gold.
Leachwell has shown satisfactory precision since introduction as the
primary assay technique in October 199X but leachwell accuracy and
recovery through comparison with fire assay techniques has identified
hias. A hias toward higher fire assays in grades above 2 g/t invoked an
investigation into the cause of the discrepancy between leachwell and fire
assay.
Testwork evaluated Leachwell assay recovery by varying leach time
duration. which showed that by increasing the leach time improved
recovery significantly. Monitoring of leachwell against fire assay had
shown that a leachwell (200 g) with a one hour leach has under-called
grade when conipared with fire assay by up to 18 per cent. on average,
for Tarmoola ore types. Alternatively. optiniisation of the leachwell
assaying technique using a 200 g pulp and a two hour leach has returned.
on average, higher assays than fire assay by up to eight per cent.
Testwork on screen fire assays. duplicate assays and fire assay to
extinction has demonstrated assay variability associated with coarse.
particulate gold. The variability and disiribution of gold in Tarmoola ore
typcs has emphasised the importance of high quality sample preparation
for leachwell assaying to ensure liberation of gold to leaching solutions.
Assay quality assurance protocols are vital to assay data integrity and
enahlc confidence in delineation of ore-waste boundaries and provide
early recognition of probleniatic assaying periods and isolation of grade
control practices. which depart from pcrformance standards critical to the
operation
INTRODUCTION
Tarmoola Gold Mine is situated 280 km north of Kalgoorlie in
Western Australia within the Norseman-Wiluna Greenstone Belt
of the Yilgarn Craton. Gold mineralisation at Tarmoola is hosted
in quartz vein arrays and associated with intense
quartz-carbonate alteration within structurally complex shear
zones on ;I granitoid-greenstone contact. The mine produced 3.2
million tonncs of ore for 194 000 ounces in the 1998/1999
financial year.
The objective of grade control at Tarmoola is to delineate
optimised ore outlines and accurately predict tonnes and grade of
KOM ore to the mill. The collection of quality assay data is of
primary importance in achieving the objective and can only be
verified by assay monitoring through quality assurance
programs. Hy evaluating assay quality a level of confidence in
data collected can be ascertained.
Changes in grade control practices have occurred at Tarmoola
to optimise ore zone delineation, with a number of changes
resulting directly from assay quality assurance programs. In
October 1998, the aqua regia (30 g) assaying technique was
* Leachwell in this paper refers to Leachwcll’“ 60x catalyst. an
accelerated cyanide extraction (ACE).
I. Mine Geologist, PacMin Tarmoola Operations Ply Ltd, PO Box 67.
Leonora WA 6438.
4th International Mining Geology Conference Coolum, Qld. 14 17 May 2000
~
replaced by leachwell (200 g). Testwork undertaken during 1998
showed leachwell provided accurate and precise results. and
reduced sample variability was an expected benefit of assaying a
larger sample.
In response to grade control estimates under-calling actual mill
head grades the leachwell assaying technique (200 g, one hour
leach) was replaced by fire assaying (40 g) technique in
September 1999. The change from leachwell to fire assay was
supported by quality assurance testwork that indicated leachwell
was under-calling grade with respect to fire assay.
Assay quality assurance for the period October 1998 to
January 2000 has analysed leachwell and fire assay precision,
leachwell accuracy through comparison with fire assay, gold
particle size and distribution in Tarmoola ore types. leach time
duration and sample preparation.
Assay quality assurance programs at Tarmoola have been
fundamental to further understanding assaying issues critical to
grade estimation, reconciliation and ore zone delineation. It has
highlighted the importance of completing assay quality assurance
by identifying key issues related to assaying and has resulted in
optimisation of leachwell assaying techniques for Tarmoola ore
types.
ASSAY PRECISION
Leachwell
Leachwell has been the primary assay technique used between
October 1998 and September 1999. The lzachwcll assaying
technique involves weighing of 200 g o f pulveriscd sample (d75
microns) into a one litre, plastic screw capped container with the
addition of 400 ml of water (tap temperature) and one leachwell
assay tablet. Containers arc capped and placed in a tumbler
revolving at approximately IS rpm for one hour. The containers
are removed from the tumbler and allowed to settle. A I O ml
aliquot of clear, cyanide liquor is removed from each and placed
into a 20 ml culture tube. The gold concentration is then
determined using atomic absorption spectrometry (AAS) in
conjunction with appropriate standards. Testwork in October
1999 has resulted in the leach time being extended to a two hour
leach duration with a starting water temperature of 30 degrees
Celsius.
Repeat analyses are performed routinely by the principal assay
contractor on ten per cent of assays submitted. Leachwell repeat
data for the period October 1998 and September 1999 showed a
moderate to tight scatter over 0 - 10 g/t grade range with no bias
observed (Figures 1 and 2). During this period a precision of
0.19 has indicated repeatable assays from the same pulp through
all grade ranges.
Fire assay
Fire assay replaced leachwell in September I999 as the primary
assay technique. Analysis of assay repeat data for the period
September 1999 to January 2000 showed a moderate scatter with
precision of 0.24 with no bias observed (Figures 3 and 4). Fire
assay has shown a wider scatter than leachwell indicating
leachwell to be a more precise method. Both assaying techniques
have produced unbiased repeat results but comparison of fire
43
 D J ELDER

Flc; I - Scatter plot of LWI versus LW2 for the period October 1998 to tki 2 - QQ plot of LW I vcrsus LW2 for the period October 1998 to
September 1999 (n=3827) Septernbcr 1999 (n=3827).

~~

.>'.
11

10

9 I

8
. *
I ?
,'
/
.
r
N 6 6
N
2 5 2 5

4 4

3 3

2 2

1 1

0 0
0 2 4 6 8 10
FA1

FK;3 - Scatter plot of FA1 versus FA2 for the period September 1999 to FIG4 - QQ plot of FA I versus FA2 for thc period September 1999 to
January 2000 (n=1092). January 2000 (n=1092).

assay against leachwell has shown a bias toward higher fire
assays indicating accuracy or recovery is a limiting factor in the
leachwell assay technique.
ASSAY ACCURACY: COMPARISON OF
LEACHWELL WITH FIRE ASSAY
October 1998 to August 1999
With the introduction of lcachwell (200 g, one hour leach) in
October 1998, assay quality assurance programs were introduced
to test leachwell accuracy by repeat assaying pulveriscd sample
using the fire assay technique, Pulps were recalled from the
principal assay contractor and submitted to independent
laboratories for duplicate firc assaying and screen testing to
analyse grinding efficiencies. Duplicate fire assays on pulps were
employed to provide averaged fire assay results to minimisc
scatter commonly associated with coarse, particulate gold.
Results for the period October 1998 to August 1999 indicatcd
duplicate lire assay results havc identified higher gold grades
than leachwell. Scattcr and quantile-quantile (qq) plots for thc
period indicated that fire assay determined, through the 0 - I O g/t
grade range five per cent more gold than leachwell where a bias
is observcd in grades above 2 g/t (Figures 5 and 6). Analysis of
the 2 - 10 g/t grade range showed lire assays determined ten per
cent more gold than leachwell in grades above 2 g/t. These
results have shown that with increasing gold concentration there
is an increasing bias toward higher fire assays over leachwell.
August 1999 to October 1999
In August 1999, the assay quality assurance program was revised
and the principal assay contractor was instructed to complete firc
assay repeats on ten per cent of leachwell assays grading abovc
0 5 g/t and to complete a fire assay on the corresponding
leachwell samplc residue. Thc change from recalling batches of
pulps for independent analysis to in-house quality assurance was
initiated to provide results allowing fortnightly analysis of
leachwell accuracy.

44 Coolurn. Old, 14 - 17 May 2000 4th International Mlning Geology Conference

 LEACHWELL VERSUS FIRE ASSAY

6 :

-2 1
5 -
.-
4 : .’ i

0
0 2 4 6 8 10 0 2 4 6 8 10
LW1 LW1
- ----

Pic; 5 - Scatter plot of LW I versus FA I for thc period October 1998 to FK 6 - QQ plot of LW I versus FA I for the period October I998 to
August 1999 (n= 7.58). August I999 (n=7.58).

14
I
12
- I

10

2 ... . .-
6

LW1 LW1

Fici 7 - Scatter plot of LW I versus FA I for the period August 1999 to Rci 8 - QQ plot of LW 1 versus FA1 for the period August 1999 to
mid-October 1999 (n=208). mid-October 1999 (n=208).

Quality assurance monitoring for the period August 1999 to
mid-October 1999 cornpared leachwell (one hour leach) and lire
assay. A bias toward higher fire assay results was observed above
3 g/t. The average leachwell assay is 1.88 g/t and the average fire
assay is 2.07 glt and fire assays were on average, nine per cent
higher (Figures 7 and 8).
The continued bias toward higher fire assays resulted in
leachwell being replaced by fire assay in September 1999 as the
primary assay technique. The quality assurance program
continued to monitor leachwell accuracy, with the assay
contractor completing leachwell repeats on ten per cent of tire
assays grading above 0.5 g/t and a fire assay on the
corresponding leachwell tail.
October 1999 to January 2000
Analysis of leachwell and fire assay data for the period
mid-October 1999 to January 2000 compared leachwell (two
hour leach) and fire assay (Figures I O and 1 I). The results
indicated a bias toward higher leachwell assays above 2 g/t,
where the average fire assay is 2.62 dt and the average leachwell
is 2.77 glt. Leachwell assays arc six per cent higher than fire
assays on average. The change from one hour to two hour leach
limes had a significant effect on gold recovery and results have
indicated that leachwell has the ability to identify more gold than
fire assay.
Leaching duration testwork
Leachwell testwork in early-October 1999 had investigated one,
two and four hour leach times and starting water temperatures of
7°C and 32°C (Table 1 ). The results arc combined with previous
screen tire assay results and original leachwell assays (performed
using a one hour leach and tap water temperature). The results
indicated that increases in leaching duration significantly
improved gold recovery. The effect water temperature had on
recovery is less clear but suggested better recoveries at a water
temperature of 32°C. This testwork resulted in the duration of
leaching being extended to a two hour leach and installation of a
constant temperature water supply (30°C) at the principal assay
contractors laboratory in mid-October 1999.

4th International Mining Geology Conference Coolum. Old, 14 - 17 May 2000 45

 D J ELDER

. 7
l1

/
I /

i5
3
4
___I
2

Fici 9 - QQ plot of LW 1 h versus LW2h for testwork completed in Flci I 0 - Scatter plot of LW I versus FA I for the period mid-October
October 1999 on leaching duration time (n=87). 1999 to January 2000 (n=I 18).

I
. ..

--
7 degress Celcius.. .
.. . ;, . . 32,degrcss Cclcius . I
Sampte.no
---
I Screen FA
1
Orig LWI-- -!-~r I 2 Hr 4Hr , Tail A_. 2-H.r . 4Hr . . Tail;

I . . . 4 I ~
10.85 7.69 7.38 14.10 ~ 15.10 0.35 , 9.7? .-:10.401

Further evaluation of gold recovery and leaching duration

involved leachwell assaying of 100 pulps using a one and a two
hour leach times. The one hour leach produced a population
averaging 1.10 g/t and the two hour leach produced a sample
population averaging 1.2.5 d t . The results showed the two hour
leach produced leachwell assays 12 per cent higher than one hour
leaches from the same pulverised sample (Figure 9). The results
of this testwork have shown that assay results are highly
susceptible to error in recovery or accuracy even though
precision for each variation is still good. Fire assays of the same
data set produced a sample population averaging 1.27 glt,
slightly higher than the leachwell two hour average of 1.25 g/t.

1 Fire assay of leachwell tails

The leachwell assaying technique is a partial digest technique
therefore evaluation of gold not recovered in the leachwell
assaying process is an important consideration Fire assay of
leachwell tails data (FAT) has become a routine part of assay LWI
quality assurance. Comparison of lire assay of leachwell tails
with corresponding original leachwell assays from periodic
Fi(i I I - QQ plot of LW I versus MI for the period mid-October 1999 to
testwork between October I998 and August 1999 indicated
January 2000 ( n = l 18).
approximately two to four per cent gold was not recovered from

46 Coolum. Qld. 1 4 . 17 May 2000 4th International Mining Geology Conference

 LEACHWELL VEKSUS PIKE ASSAY

leachwell assays. Testwork for the period hetween August 1999
to January 2000 indicated that on average three per cent of gold
is not recovered by the leachwell assaying technique (Figure 12).
N o significant change was observed in the data where leaching
duration was extended to a two hour leach time
. ".
Screen Fire Assays
Screen fire assay testwork has been used to identify the
distribution of gold in size fractions of ten, high-grade samples
from granitoid-greenstone contact mineralisation (Table 3). The
results have identified significant percentages o f gold are
distributed in size fractions greater than 75 microns. At these
particle sizes it is believed that occlusion of gold from leaching
solutions has a considerable impact on gold recovery. This
emphasises the importance of high grind efficiencies in sample
preparation to liberate all gold particles prior to partial digest
assaying. These resistant particles containing proportionally
more gold are most likely to be from zones of high-grade
mineralisation with intense silicification as observed in Tarmoola
ore types.
I f the ten screen fire assays (presented in Table 3) are
considered to be one combined screen fire assay result then
averaged percentages of sample in each size fraction can be
plotted against averaged gold content for each size fraction
(Figure 13). The relationship between gold content and size
fraction has indicated that coarser size fractions (>75 microns)
represented, on average 2 I per cent of the sample and contained,
on average 5 1 per cent of the gold.

-
0 2 4
LWI
6 0 IC
I
~ 60
'O!

FK; I2 - Scatter plot of LW I versus FATI for the period August 1999 to
January 2000 (n=332). I N
' 40 I
SIZE AND DISTRIBUTION OF GOLD IN
TARMOOLA ORE TYPES

Gold particle size 7

0 ,~ . .. .
To evaluate gold particle size a coarse gold sample was collected

I
.1N 150106 106-75 75-53 5538 <38
from the gravity circuit of the Tarmoola Mill in August 1999. s m fractions (muons)
The gravity gold was passed through a series of screens and .. -~ ..

results gave an indication of gold particle size in Tarmoola ore

types (Table 2). While gold particles collected for this testwork PI(; 13 - Line graph showing the relationship between averaged
would have experienced deformation and flattening through the percentage of sample in each size fraction (diamonds) and the averaged
milling circuit the results are thought to be indicative of gold percentage of gold from each size fraction (squares).
particle size. Gravity gold collected in this part of the milling
circuit was very coarse with 85 per cent gold being greater than
75 microns. Up to 45 per cent of gold in the milling process can The results indicating distribution of gold in high-grade
be recovered in the gravity circuit indicating the coarse nature of samples are significant when using a partial digest technique as
gold particles in ore types at Tarmoola. The abundance of coarse failure to liberate all gold particles to leaching solution will result
gold is consistent with difficulties associated with assaying in an under-call of true grade of the assay sample. The occlusion
particulate gold mineralisation at Tarmoola. of gold from leaching solutions is considered to be a significant
issue in assaying of Tarmoola ore types arising from high
degrees of silicification in mineralised zones. Considerable
attention is paid to sample preparation protocols, to ensure
TABLE
2 liberation of all gold particles to leaching solutions.
Suiiirnav of200 g sample of gravity gold taken from graviy
circuit at Tarmoola Mill to investigate gold particle size. Duplicates
. ~ .. .
An extensive duplicate program was undertaken on
Size (microns) Weight (%) granitoid-greenstone contact mineralisation in May 1999. A total
. 1... - of 403 duplicate field split samples were collected from a Jones
Riffle splitter mounted on a grade control RC drilling rig. The
... 3
.... -.. . assaying technique for this testwork was leachwell. A wide
- 3oo-soo -,__ 16 8 scatter was observed in the scatter plot (Figure 14) with a
..- . . 1.50.-
-.... 300 . 1I 67 , 31 precision of 0.57 and a bias toward higher duplicate assays was
noted. The results indicated a poor correlation between the
7s - 1.50 .I .- 91. . . .. .
- . 42 leachwell original (submitted for normal grade control) and the
575 33 . I .. . ..!.!..- duplicate leachwell assay and has demonstrated the grade
-~Totals .. . . 2 16 I-_ . . Io() .-
variability in a sample. The grade variability has been attributed
to the coarse particulate nature of gold mineralisation at
Tarmoola.

4th International Mining Geology Conference Coolum, Old. 14 - 17 May 2000 47

48 Coolum. Old. 14 - 17 May 2000 4th International Mining Geology Conference
 LEACHWELL V E R S U S I;IRE ASSAY

TARIX 3 (continued)
Siitiiiiim-y o f s c r w i ,fir(,(issriy icwwork on ien samples frotn I r i g l i - g r d . Rrcinitoid-gr1,eiisiorie coninci minernlisniion.

' Sample no and sizing

(micty?)
I
.......... -
Fire assay
PPm
...

1 ?c Retained from
sizing
' Calculated Head
Grade
Original LW1 1
I
YC Gold in size
fraction
..

!!

>I?!) . . , . . . . . . . . .18.0s
. ... x.t37 . . 1.60. ....
!I-- - 11.55
!Oh- 150. !I . 15.10 8.03 8.75
1.21 ..... :

. ip--!47 10.58
I
I
75- 106
53-73.. . . . ,. .
13.65
.. ._ .---..

12.10
-
1
I
IO,J4
9.43 1.14
. .

....
!
, .........
. .
..

8.23 .-

38-53
<3x
. . . . 12.65
..........

1.73 , .
6.57
56.36
0.83
7.61
I
--- ....
... .- -. .. 5.99
54.89
.

..-,
.

I .
...f0t;ll
.. -. San1ple
-

>I50
8 -..I
,- 31.80-
~.
I

. . . . .
1"".00
I .22
-_j-

. ~
13.86-
0.3')
1

.
1 1.7?-.-
. -,
...... I OO.O()
_ _..-. 4.60.

I-.
II
I
106- I S O . . . . . . . .9.06
.

I
. 3.50 0.35
1.19
. . 4. I I
14.01
. -:

I- -.
75- IO6 11.95 9.92 . --

53-75-_-
i 12.30 R.28 I .02 ....
........ - I-- .- ..

....... 38-53 3.7.1.. . 7 03 . 8.08 .

. <3P ....... .; - 7".06-. __-. , 434 i .-

97.17 .
! TotalS~uiiple9 ~
100.00 ,.-. 8.46 7.00 1@3.0"
>I50 I 95.60 8.03 I 7.68 :-. ... 38.03.. ..I
! I-
. .- _ _- .106-
- 1 SO .- , 27.75 , 9.19 2.55 _. ....... ..
I 12.63- . ;
j ..... .!?- !F. ..... 26.10 ... j 12.88 --!- 3.36 I-. 16.65 :
........ 53-75 ~- . . 6.09
............... 38-23 i .- .
0.91 ... 4.50 I

. . 4 8 ........ I p-___
. 22.09
i .. .LLF!~~V~C.!.C.. .
! ..15,80 -...

the sample sets (Figure IS). For example. sample 7 has a range
11
of 1.90 to 3.44 g/t from 37 assays. The average for this sample
10 was 2.59 g/t which is 22 per cent higher than the original fire
assay of 2.02 g/t, initially reported and used i n routine grade
9
control. These results typify some of the inherent problems faced
8 in providing accurate grade control predictions for reconciliation
7
against actual, mill head grades.

46
0 DISCUSSION
I s
The introduction of leachwell as the primary assaying technique
4 in October 1998 was seen as a progressive step in providing
3 quality assay data for grade control. The improvements in assay
precision achieved by assaying a larger proportion of sample
2
were considered beneficial for assaying Tarmoola ore types by
1 reducing sampling error.
0
Periodic testwork during the period October 1998 to May 1999
0 2 4 6 10 11 was completed to ensure the assay quality of leachwell
LWI technique. Testwork indicated a bias toward higher fire assays
over leachwell in grades above 2.0 g/t. which was initially
attributed to gold not recovered from the leachwell sample
Fici 14 - Scatter plot of LW versus LW duplicate field split, May 1999 during leaching. The bias indicated leachwell assays were five
(n=377). per cent lower than fire assay on average. Fire assay testwork on
leachwell tails indicated on average, two to four per cent gold
was not recovered by leachwell and was accepted as a
consequence of the partial digcst technique.
Fire assaying to extinction Grade reconciliations between grade control predicted
Fire assaying testwork designed to evaluate variability of gold estimates and mill actual head grades were acceptable between
grade in pulveriscd sample was completed in January 2000. The October 1998 to May 1999, with variance of *I0 per cent. Assay
testwork evaluated seven samples of between 1.S and 2 kg of quality assurance indicated acceptable assay accuracy and
pulverised material. Each sample was repeat tire assayed to precision through critical cut-off grade ranges (0 - 1.0 g/t). so
extinction (Table 4) and provided between 36 to 47 assay results leachwell was considered to be a satisfactory assaying technique
for each sample. Results show high variability in grade ranges in during this period.

4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000 49

 I> J ELDER

TABLE 4
Summary of seveti samplesfire assuyed to extinction to evaluate heterogeneity in Tarmoola ore types.

I FA original- 1 2.15

50 Coolurn, Old, 14 - 17 May 2000 4th international Mining Geology Conference

 LEACHWELL VERSUS FIRE ASSAY

2 00

150

100

0001 - - >I
1 2 3 4 5 6 7 8 9 1011121314151617101920212~32425262720293031323334353637303~041424~~~~740

Assay number
I .. _. . . .. . .- .. -. ..- --

Flci IS - Line graph showing assays from seven pulvensed samples each fire assayed to extinction.

.. .-.- -
During July 1999, assay quality testwork results from grade - .
.. . .. . .. . .
control drilling in May 1999 were received from an independent
laboratory. Independent fire assay testwork indicatcd a strong i
bias toward higher lire assays over original leachwell assays 6 - i
above I .2 glt. Fire assay identified 18 per cent more gold in this i
i
testwork on average and shows increasing bias with increasing
grades (Figure 16). Independent sample screening indicated poor 4 - i !
sample preparation by the primary assay contractor where only
5.5 per cent of screens were 90 per cent passing 75 microns. The
results of the testwork anticipated a grade control under-call in : :.
3 .

June 1999 when ore defined by substandard assaying in May 1 : _- .,_-.--

.,. ,

...$> .
I999 was being milled. The testwork emphasises the relationship 2 - ! . *. .. ._.-
//

between substandard sample preparation and lowered leachwell -..'

recoveries. Grade control under-call was a reflection of t....-.

difficulties determining accurate grades of ore sourced from 1 - **a* !
zones of high-grade mineralisation using leachwell. The bias .,.. / * a
... .
~

between leachwell and fire assay has been observed in grades O f . . . . , , I . . . . , . . , . I . . . I . . . . ,

0 0.6 1.0 1.6 2.0 2.5 3.0

above cut-off grades (IiOM cut-off >O.S g/t) so i t was believed
LW1
that there was no misclassification of ore during the period of -.-

4th International Mining Geology Conference Coolum. Old, 14 - 17 May 2000 51

 repeats on ten per cent of leachwell assays above 0 . S g/t. This
provided r c g u l ~feedback of leachwell assay performance and
enabled a review of accuracy through all grade ranges, most
importantly evaluating higher grade ranges, which were
relatively un-tested in previous testwork.
As leachwell continucd to under-call grade in comparison with
fire assay i n quality assurance testwork. a change of assay
technique was prompted and tire assay replaced leachwell as the
primary assay technique in September 1999. Monitoring of
leachwcll accuracy continued where ten per cent of lire assays
above 0 3 g/t were repeat assayed using leachwell. The bias
between leachwell and lire assay initiated a program of testwork
to resolve assaying discrepancies and provide further
understanding of the leachwell assaying technique.
Investigation of leaching time duration in October 1999
showed an increase in gold recovery as leach time was increased.
The consequences of leaching duration testwork resulted in a two
hour leach being introduced at Tarmoola, replacing a one hour
leach and results immediately showed leachwell identifying
higher grades than fire assay through the period mid-October
1999 to January 2000. The optimisation o f leaching duration
time coupled with emphasis on quality sample preparation has
indicated the lcachwell assaying technique. although a partial
digest has the potential to provide precise assays and idcntify
more gold than fire assay.
The increase o f leaching duration to two hours showed no
significant change in the leachwell tail gold content. Leachwell
recovery had increased by up to eight per cent on average i n
comparison with lire assay during the period October 1999 to
January 2000, which suggests there i s a discrepancy with the fire
assay tail results. By definition, increased gold recovery should
equate to decreased recovery of gold content in fire assays of
leachwell tails. The reason for the lack of significant change in
fire assay tails cannot be explained at the present and has
identified an area for continued evaluation. For the purpose of
this rcsearch however, lire y techniques through the principal
assay contractor have remained unchanged and fire assay results
are assumed to he a benchmark upon which leachwell assays
have been measured against.
Fire assay to sample extinction testwork has revealed the
heterogeneity o f Tarmoola ore types and has showed wide ranges
in grades from a pulverised sample. The wide grade ranges are a
direct result of subsampling pulverised material containing
52 Coolurn. Old. 14
coarse particulate gold. Duplicate field split analyses have
indicated poor precision and further demonstrated the variability
of gold in Tarmoola ore types. The distribution of gold i n ii
pulverised sample through screen fire assay testwork illustrated
the need to ensure high standards of sample prcparation are
enforced to ensure liberation of gold particles in a homogenised
Pulp. I
Mineralised samples are frequently highly siliceous and
substandard sample preparation can result in partial to full
occlusion of gold in resistant particles emphasising the
importance of high quality sample preparation. Ensuring ;ill gold
particles are liberated to the leaching solution is crucial to
maximisc gold recovery in the leachwell assaying process.
Pulverisation of sample should be completed t o levels where
ideally the pulverised sample is 100 per cent-passing 75 microns.
CONCILJSION
Leachwell assaying is a precise assaying technique achieving
good repeatability from the same pulverised sample in Turinoola
ore types. Fire assay is less precise in comparison and shows
wider scatter and both techniques produce unbiased repeat
assays. Leachwell versus fire assay comparisons have shown that
fire assay and leachwell have difficulties determining grade from
particulate gold mineralisation but !eachwell has an advantage
over tire assay by using a larger pulp sample for assaying. The
larger sample reduces variability associated with coarse gold and
results in increased precision. However, leachwell accuracy or
recovery is highly susceptible to sample preparation and leaching
duration time. The quality of sample preparation has a significant
effect on liberation of gold particles. The failure to liberate gold
to leaching solutions will result in decreased recoveries in
leachwell assays and will under-call grades when compared with
fire assay. Leachwell provides higher levels of precision than fire
assay and results have demonstrated that optimised leachwell
assaying has the ability to out perform fire assay on average.
ACKNOWLEDGEMENTS
The author would like to thank Pacmin-Tarmoola Operations Pty
Ltd for their permission to publish this paper and for
management's enthusiastic support of assay quality ;issurance in
grade control at 'I'armoola. Also acknowledged is Amdel
Laboratories Ltd of Kalgoorlie for continucd rcsearch into
leachwell assaying.
- 17 May 2000 4th International Mining Geology Conference
Mine Geology
Controls on High-Grade Gold Distribution at Vera Nancy Mine
D Sims'

ABSTRACT
Ilctermining the controls of high-grade mineralisation at Vera Nancy
requires careful data collection and assessment on a global and specific
deposit basis. The techniques developed over 60 years ago to analyse
structure. grade and width data are just 3s applicable today and can be
enhanced using modem geological modelling software.
High ore grades at Vera Nancy are controlled by both the primary
geometry of the rnineralised structure and the intersections of the main
rnineralised veins with subordinate splay veins. The main mineralised
structure dilated as a consequence of extensional tectonics while the
splays acted as conduits bringing oxidising surficial fluids into mixing
zones precipitating high gold grades.
Near-mine exploration is focussed on identifying zones of vein flexure
and spl:iy interaction to locate the relatively small high-grade shoots. RAVENSWOOD
Daia modelling in a 3D environment is an essential process for
understanding the geometry of the system being explored. \,
\

INTRODUCTION
Determining the distribution of high-grade ore is a process which
involves the collection, compilation and analysis of detailed
spatial data to indicate the relationships which may (or may not)
exist between metal distribution, deposit geometry and
lithological or geochemical aspects of the deposit. Exploration
geologists develop genetic models which itemise and arrange
critical components to develop ore generation models for
targeting while i t is the mine geologist who has the best
opportunity to understand why the orebody is really developed
where i t is. Since profitability of a mine is enhanced by the
presence and distribution of high-grade ore it is important to
achieve an understanding of what controls the highest metal
grades in any gold deposit.
This paper discusses progress towards the understanding of the
Vera Nancy low-sulphidation epithermal deposits located S5 km
southeast of Charters Towers in North Queensland (Figure I).
The objective is to establish the interrelationship between
geometry and gold distrihution for the deposits and to develop
explanations that account for the localisation of high-grade gold
ore. The techniques used to analyse the data are drawn largely
from the text 'Mining Geology' (McKinstry, 1948) and
augmented using computerised 3D geological modelling tools.
LOW SULPHIDATION EPITHERMAL DEPOSITS
Low-sulphidation quartz vein hosted epithermal mineralisation
(White and I-ledenquist, 1995: Corbett and Leach, 1998)
produces deposits which are closely constrained within and
adjacent to the controlling structures which host them. The
structures act as conduits for mineralising lluids which undergo
prcssureltemperature changes in the 'near-surface' environment
leading to boiling, compositional change and fluid mixing in the
critical zone. Consequent mineral deposition results in the
structure being inlilled with predominantly quartz-carbonate,
ksulphidcs, adularia and precious metals. Relatively narrow
alteration envelopes form adjacent to and above the structure.
Alteration. mineralisation and vein textures have been modelled
into an idealised zonation pattern based on many southwest USA
I. MAuslMM. Senior Mine Geologist. Pajingo Joint Venture. PO Box
I27 I . Ch;iricrr Towers o l d 4x20.
Rci I - Location of Pajingo Joint venture
deposits which can be used predictively in exploration and
resource definition (Buehanan, I98 1 ; Morrison et al, 1990). Ore
shoots in these deposits typically have plunging elongate shapes
with anisotropic grade distributions. Epithermal deposits form at
'shallow levels' with precious metals generally occurring over a
vertical extent of a few hundred metres.
Mineralised structures represent fault zones which dilated
allowing ore fluid movement, depressurisation and mineral
precipitation. Kinematics on such structures may be either
normal, reverse or transcurrent while ore fluid transport may be
upwards or along the structure. While it is clear that mineral
textures present in low sulphidation epithermal deposits such as
colloform-crustiform banding are a product of fluid boiling.
more contentious is the mechanism which causes precious metal
precipitation. Boiling alone is promoted by some as the sole
mechanism for gold and silver precipitation (Hedenquist ef al.
1996) while others promote fluid mixing (interaction with
surficial oxidised fluids) as efficient mechanisms lor precious
metal deposition in certain circumstances (Corbett and Leach.
1998).
THE VERA NANCY DEPOSITS
The quartz-carbonate AulAg bearing veins at Vera Nancy have
been described elsewhere in this volume (Sims. 2 0 a ; Sims,
2000b) and have been reviewed in a number of papers (Evans
and Jones. 1997; Richards ef al. 1998; Butler ef al, 1999).
Four main deposits, named Nancy, Vera, Nancy North and
Vera South, occur over a 2.2 km strike length to a maximum
depth of 600 m. Figure 2 shows the resource long section for the
Vera Nancy deposits. The contours on the long section show Au
gram-metre (gm) values with the I S gm contour being the

4th International Mining Geology Conference Coolum. Old. 14 - 17 May 2000 55

 1) SIMS
PAJINGO JOINT VENTURE
INSITU REMAINING RESOURCE
%!%e!eEs!
End of June 1999
8 Srptcmbcr 1999
Fir; 2 - Long section showing deposits along Vera Nancy trend. Contours in gram-metres
current limit of ore for the mine. The Nancy North, Nancy and
Vera deposits have two or more equant to steeply plunging
shoots separated by low-grade or barren zones. The deposits are
hosted in an andesitic volcanic sequence on the margins of the
Drummond Basin.
Each deposit has a main vein which carries the bulk of the
mctal content while subordinate splay veins divcrgc from the
main structure and either die out in the host rock or rejoin the
main vein. Splay veins can carry economic grades but generally
only in close proximity to the main structure.
In all deposits the veins are moderate to steeply dipping but
contain bends and kinks in strike and rolls in dip. All gold and
1 silver is contained within quartz veining. Vein widths range from
a few centimetres up to 16 m but average widths in economic
zones are commonly 2.0 - 3.0 m. Nancy has narrower widths
than Vera but higher grades. Nancy North has mostly vein
networks defining the structures rather than the solid continuous
veining seen in Nancy and Vera.
Resources total 4.2 Mt at 14.6 gtt Au. Mine production began
in 1997 and is increasing to a rate of over SO0 OOO t per annum to
produce in excess of 220 000 oz Au per annum. All mining is by
underground methods utilising bench stoping on IS m sublevels.
Total cash costs per oz Au for the three months to December
1999 was AUS $1 90 (47 607 oz Au produced).
The data compiled for this paper spans the Nancy North,
Nancy and Vera orebodies and includes over 105 km of 20 m x
20 m spaced underground LTK60 infill core drilling as well as
ore drive development for bench stoping. Ore drive development
is around 90 per cent completed in Nancy, SO per cent completed
in Vera and 30 per cent completed in Nancy North. As
56 Coolurn. Old. 14
underground drilling and ore driving has yet to commence i n the
Vera South deposit, modelling to-date has relied on 40 m x 40 m
spaced surface drilling. Only brief discussion is made of Vera
South and confined mainly to the gross geometry of the vein
arrangements as interpreted from core.
In general the underground infill drilling programs provide
enough information to reliably model the orebody geometry and
grade distribution for mine planning purposes to yield Probable
Reserves however geological understanding of the veins arc
greatly enhanced during driving. During ore driving the face of
each cut (3 m long) is geologically mapped and sampled
followed later by backs mapping and 3D stope geology
modelling prior to stope extraction. Veins are generally narrower.
higher grade and more sinuous in driving than modelled from
drilling data alone. Data collection and interpretation focused
toward the resolution of detailed vein geometry is a key function
of mining geology at Vera Nancy (Sims, 2000b).
CONTROLS ON HIGH-GRADE ORE AT
VERA NANCY
Issues considered in assessing ore controls at Vera Nancy
include:
the arrangements of the mineralised structures on a 'global'
scale;
the specific geometry and arrangement of the structures
within each deposit;
grade and width variation in relation to vein geometry; and
genetic evidence within the veins indicated by texture and
grade distribution.
- 17 May 2000 41h International Mining Geology Conference

Arrangement of the structures on a global scale
Globally the Nancy North. Nancy, Vera and Vera South deposits
occur along the same Iault zone and generally dip steeply south.
,.
I here is a through-going structure hosting the main mineralised
vein in each deposit with the main vein containing around 90 per
cent or more of‘the metal content i n each deposit.
The fault m i e has a sigmoidal ‘Z’ shape in plan with the outer
deposits (Vera South, Nancy North) curving away by about 20”
i n strike from the reasonably linear trend of the central zone
occupied by Vera and Nancy. Figure 3 shows a plan of vein
geometries at thc 1000 m KL (about 250 m below surface) while
Figure 4 shows the long section of Conolly contours lor the main
vein hanginswall surface over the same strike length. Conolly
contours display the 31) geometry of a vein and are constructed
hy contouring points of equal perpendicular distance on the
vein’s surface from an arbitrary dipping plane approximately
parallel to the strike and dip of the vein. They show vein
geometry i n the same way as topographic contours indicate land
surface geometry. The structure cnntours in Figure 4 are
constructed from a plane oriented parallel to the central zone
containing Nancy and Vera. They demonstrate the changes in
strike between the central zone and the flanking zones of the
structure - strike changes occur where steep gradients in the
contours are evident.
Each deposit along the trend has in detail kinks and bends in
its strike and rolls in its dip. Splay veins diverge from the main
vein ;it inflection points and can either terminate in the host
sequence or rejoin the main vein along strike. Other subordinate
splays form linking strtictures between other splays. Figure 3
shows hangingwall splays in Vera and footwall splays in Nancy
located at inllection points in the main structure. Vera South has
;I central ‘cymoid’ loop geometry (McKinstry. 1048) with a fault
‘horse’ occurring between veins along a larger scale inflection.
Fi(i 3 - Plan of Vera Nancy trend showing vein geometries at I000 m KI,. Grid spacing is 250 m with mine grid north at top of page
I I
NRncy N o r t h
i Nancy
Fic; 4 - Long section showing Conolly contours for the main vein hangingwall surface. Grid spacing is 250 m and contours extend lo s u r f x e .
4th International Mining Geology Conference
CONTKOLS ON HIGH-GKAUE GOLD DISTRIHUTION AT VERA NANCY MINE
Figure S is an isometric view of stacked plan slices at a 75 m
vertical slice interval showing the arrangement of the ore hosting
structures. The 1000 RL slice shown in Figure 3 is the fourth
slice from the top. The strike changes discussed above are
evident in the isometric view as are splay veins at inflection
points. ‘The horse at Vera South has a longer down plunge exlent
than along strike.
Post-ore faulting has disturbed the deposit geometry in
localised areas but not to the extent of removing or masking the
primary geometry of the host structures on a global or deposit
scale. The changes in strike between the central and end zones
are a function of primary fault zone geometry.
It is assumed that the kinematic history of all the Vera-Nancy
deposits along the structure are sympathetic - the movement
history on one vein is related to the movement history of the
other veins during ore formation. The classic sigmoidal shape of
the fault trend in plan may at first glance imply that vein
development in the central zone is due to a dilational jog
resulting from dextral (right lateral) shear along the structure.
Given that appreciable dilation has occurred also in the flanking
fault trends (Nancy North, Vera South) such a model is
contradicted by other dilational indicators (see below).
Specific deposit geometry
Examination of the deposits/structures in more detail assists to
resolve kinematic issues along the lault zone. This discussion
will exclude the Vera South deposit as detailed modelling is yet
to be undertaken.
Figure 6 shows an isometric view of stacked cross-sections for
the Nancy North, Nancy and Vera structures. As with Figure 5
and Figure 3, the structures do not necessarily contain ore grade
material over the full extent depicted, but rather show the shape
of the ore hosting structure. Sections are spaced at 40 m casting
intervals along the mine grid.
1 Vera S o u t h 1
Coolum. Old. 14 - 17 May 2000 57
D SlMS

Level

-
I North
i
I I
126!
Vera
40.
I
I
I
-90
DIP: -21
i
Fm 6 - Isometric view of stacked sections showing structure of Nancy North, Nancy and Vera deposits along a 1.5 km strike length. Sections at 40 m
eating intervals.

58 Coolurn, Qld. 14 - 17 May 2000 4th International Mining Geology Conference

 CONTROLS O N HIGH-GRADE GOLD DISTRIBUTION A T VERA NANCY MINE
The Nancy North portion of the structure has three splay veins
diverging from the main vein, two of which have steep plunges
and rejoin the main vein along strike and down dip. In
generalised section Nancy North has an upper zone with flatter
dips. a steeply dipping central zone then a lower zone again with
flatter dips. Sections shown in Figure 6 indicate this dipping
sigmoidal profile which lessens to a uniformly dipping vein
towards the deposit’s western limit.
The Nancy deposit consists of the main vein and four
subordinate veins. In the western portion of Nancy the main vein
dips steeply south in its upper portion to steeply north in its
lower portion and is located on the hangingwall of the deposit.
Subordinate veins splay from the main vein into the footwall
with two well-developed splays joining the main structure in the
western portion of the deposit. Above the junction point the main
amd splay veins are all dipping steeply south but where they
merge the main vein’s dip reverses to become steeply north
dipping (refer also Sims. 2000b Figure 3). This sigmoidal
profiled ‘roll-over’ area has some of Nancy’s best developed vein
widths and grades while economic gold grades extend out within
one of the splays for approximately 50 - 100 m.
The Nancy footwall splays discussed above intersect the main
vein in a horizontal zone along the lower western portion of
Nancy but change trend to join the main vein in a more vertical
orientation in the eastern lobe of the Nancy deposit. When the
vein intersections become steep to vertical the roll-over shape is
much less pronounced or is not present.
Vera cont;iins eight splays plus the main vein which, as with
the other deposits. contains the bulk of the metal. The Vera main
vein is continuous with the Nancy main vein but located to the
footwall of the vein array rather than to the hangingwall as with
Nancy.
Note that the upper Vera vein known as Vera North Upper
(VNU - see Figure 2) is the continuation of the main Vera vein
but displaced by post-ore movement on a steep reverse fault
which slices between the two deposits. The VNU vein has been
delined by drilling to continue some distance down the footwall
of the fault below the upper limit of the main Vera vein - in
effect the structure has been duplicated by horizontal shortening
at the eastern end o f Vera.
The Vera veins do not exhibit Nancy’s north-dipping
‘roll-over’ zones but have a moderately consistent steep southerly
dip. Splays to the hangingwall either emerge from and parallel
the main vein, form northward dipping link structures between
parallel veins or diverge from the main vein to die out in the
adjacent host rocks. In the eastern portion of Vera, which
contains the widest veins in the mine, south dipping splays
emerge from the main vein in areas where the main vein steepens
(Figure 6, Sims, 2000b. Figure 3).
All of the above geometrical relationships of the veins indicate
dilation was n function of extensional tectonics. Vein dilation in
Nancy North occurs in the steep ramp portion of the sigmoidal
profile during extension while the thickening in Nancy’s
roll-over zone is related to normal fault movement coupled with
jostling on footwall splays t o accommodate opening. Vera’s
north-dipping linking veins and south-dipping splays also
support extensional movement.
Meso-scale veining supports normal movement on the
mineralised structures. To the footwall of the Nancy main vein
thin ‘third order’ veins dip steeply to the north where the main
vein is vertical or dips steeply south (see Sims, 2000a. Figure
la). Similar relationships occur to the hangingwall of the main
Vera vein where ‘third order’ thin veins dip steeply to the north
while the main vein dips south.
Some component of strike slip movement is thought to be
evident in this dominantly extensional environment as indicated
by the positioning of splay veins branching from the main
structure at slight inflection points. Vera has hangingwall splays
branching at a northerly kink while Nancy has footwall splays
4th International Mining Geology Conference Coolum. Old, 14 . 17 May 2000
branching near a southerly kink in the main structure (Figure 3).
Resolving the magnitude and direction of shear is not readily
apparent and requires further work.
The outer economic margins of each deposit can change from
a 2 - 3 m wide ore vein to a thin poorly-veined chloritic fault or a
weakly mineralised silicified breccia zone over a 10 m strike
length without any obvious strike or dip change. Sometimes
subtle orientation changes are discernible at the point of thinning.
The rapid diminishing of the mineralised structure along strike is
interpreted to represent the ‘tipping out’ of the extensional fault
plane which allows dilation of the vein. As can occur with other
normal faulting terrains i t is expected that the fault surface is
approximately elliptical in shape. Maximum dilatiodfault offset
occurs in the centre of the ellipse with displacement reducing to
insignificant amounts along the fault ‘tip line’.
Grade and width variation in relation to vein geometry
This section will cover Nancy North separately to Vera and
Nancy due to the difference in strike between these deposits. The
relationship between geometry, grade and vein width will be
discussed using Conolly diagrams which plot parameter
distribution on contours of vein geometry.
Figure 7 shows the Conolly contours for the main vein for both
Nancy and Vera. The boundary between the two deposits is
around 4850 m E. Intersections between the main vein and splay
veins are plotted as heavy lines on the long section. Note the
‘ridges’ evident in the contours are structural highs in the
‘topography’ of the vein representing changes in vein strike and
dip. Main ‘ridges’ occur in Nancy around 4500 - 4600 m E and
4800 - 4850 m E and in Vera around 5300 m E. Nancy also
exhibits a rapid vertical gradient change around 950 m KL
between 4450 - 4650 m E that represents the ‘roll-over’ zone.
The splay vein intersection lines in Nancy are quite continuous
with the two footwall splay intersections running horizontally
along the ‘roll-over’ zone then changing strike to become
vertically oriented. The coincidence of the roll-over zone and the
vein intersections is a consequence of the splays role as dilation
structures to allow movement in this zone. The circular and
U-shaped intersection lines represent two other splays which
emerge from and rejoin the main structure.
In Vera the pattern of splay intersections is less continuous
intersecting the main vein as vertically, inclined or arcuate
shapes. There is a preponderance of intersections around the
ridge at 5300 m E.
Figure 8 shows a Conolly diagram with main vein Au grade
contours superimposed over the structure contours and splay
intersection lines. The contour lines arc in I O g/t Au intervals
with the shaded areas being 40+ g/t Au. Figure 9 shows vein
horizontal width contours with contour lines in I m width
intervals starting at 2 m. The shaded areas are 5 m+ in width.
In Nancy the distribution of both width and grade contours
show a common pattern with the higher values on or close beside
the ridges described by the structure contours. In the west lobe of
Nancy the best widths are developed in the roll-over zone while
high-grades extend up along the flank of the western ridge spur
around 1000 m KL and 4600 m E. The east lobe of Nancy
follows the ridge line closely and is parallekd and enveloped by
the splay vein intersections. There is a strong positive correlation
in Nancy between both grade and width with the location of
splay vein intersections and structural ‘cusps’ in the vein trend.
Note however that the best grades do not always coincide with
the best widths. In the lower fringe of Nancy vein widths of 2 -
3 m occur without significant grades.
In Vera the best grades and widths are developed around the
5300 m E ridge with grades being better developed around the
upper eastern splay vein intersections. Large vein thicknesses
around 900 m RL result in high metal accumulations at lower
grades whilst widths and grades in the SO00 - 5250 m E section
59
 D SlMS

I have some correlation with vein interseciions. A moderate widih distribution. As with Nancy considerable vein widths
easterly plunging intersection between a flat noriherly dipping occur in the lower fringe of Vera with relatively low gold
splay vein to the hangingwall of the main vein in the SI00 - contents and the best grades do not always occur on the widesi
S250 m E zone appears to have some influence on grade and zones.

Vera

. . . . ..

lSOOOE

FIG7 - Nancy-Vera structure contours with splay vein intersections.Grid spacing is 2SO m and contours extend to surface

Vera

(1750E 250E

FIG8 - Conolly diagram showing Au grade contours for Nancy-Vera. Shaded areas +40 glt Au.

60 Coolurn, Qld. 14 - 17 May 2000 4th International Mining Geology Conference

 CONTROLS ON HIGH-GRADEGOLD DlSTKlHUTION AT VERA NANCY MINE
3CCL I 1
4500: k750E
Fi[i 9 - Conolly diagram showing vein horizontal width contours for Nancy-Vera. Shaded areas +5
Figures IO. I I and 12 show the main vein structure contours,
vein intersections, grades and widths for the Nancy North
orebody. Contouring interv;ils ;itid shading are the same as with
Figures 7, 8 and 9,
The structure contours have a central plateau of ‘flat’ contours
which is the steep portion of the sigmoidal profile. The structural
p d i e n t s above and below the plateau represent the flattening of
[he structure up and down dip. Splay vein intersections arc
concentrated in this plateau zone and are either vertical or
arcuate i n trace.
Iligh gold grades are more restricted in Nancy North
c o m p m d to Nancy and Vera but widths are generally high. Both
widths and grades arc concentrated around the plateau zone but
grades arc inore tightly constrained in the central part of the
plateau in proximity to the splay vein intersections. Some degree
of structural ridge coincidence is evident for the width
distributions within the plateau zone whilst higher grades are
more coincident with splay intersections. Again, wide zones of
veining occur in the lower portion and fringe o f the deposit
without appreciable grade development.
Considering the three deposits gold grade and vein width is
generally related to steeply plunging cusps or steeply dipping
llcxurcs in the main vein structure combined with splay vein
intersections. High gold grades in Nancy and Nancy North
appear to be coincident with the intersection of splay veins and
the main vein whereas widths are related to the primary
geometry of the fault plane as a consequence of extensional
dilation.
Genetic evidence from textures and grade distributions
The veins throughout the Nancy North. Nancy and Vera contain
nhundant evidence that ore formation was a periodic and
repetitive event. Multiple movement stages on the faulrs
deposited veins through hoiling (handed texture) and
qucnchinglrecrystalisarion (moss texture - Morrison cf 01, 1990).
Veins once formed were often brecciated and overprinted by later
41h International Mining Geology Conference Coolurn. Old, 14 - 17 May 2000
ISOOOE b250E
111 width.
movement and vein formation. Although more work is to be
undertaken on gold grade persistence in relation to quartz vein
texture, there is no obvious or clear relationship between grade
and texture within a quartz vein. All banded, moss and brecciated
quartz vein textures can host high-grade mineralisation. No
trends in bast: metal sulphide distributions are evident in any of
the Vera Nancy deposits and base metal sulphides are extremely
rare in the veins.
Around the lower fringes of the Vera. Nancy and Nancy North
orebodies well developed and continuous quartz veining carries
strong ‘ore-bearing’ textures in appreciable widths but with only
low or minor gold contents ( 1 - 2 g/t Au). Strong evidence for
boiling in these areas implies that this mechanism alone is not
responsible for the 1oca:isation o f high gold grades.
The above observation coupled with the closer correlation
between high gold grades and splay vein intersections implies
that fluid mixing. where oxidising surticial waters interact with
ascending gold bearing solutions, are a significant factor in
high-grade gold localisation. Fluid mixing is proposed by
Corbett and Leach (1998) as a significant mechanism for gold
precipitation in epithermal environments based on geochemical
modelling and field studies.
I t is believed that footwall or hangingwall subordinate
structures which intersect the main vcidstructure contribute to
ore localisation by not only allowing block movement and
dilation in extensional settings but have served as conduits lor
descending surficial waters.
CONCLUSIONS
Both the primary geometry of the mineralised structure. which
dilated under a dominantly extensional regime. and the
intersections of the main mineralised vein with subordinate splay
veins control high ore grades at Vera Nancy. The splays appear to
have acted as conduits bringing oxidising fluids into mixing
zones with ore fluids thus precipitating high gold grades.
til
I 1 SIMS

OOE b200E 300E \ ' POOE

Fici I O - Nancy North structure contours with splay vein intersections. Grid spacing is 100 rn and contours extend to surface

1300L .

1ZOOL ~

ll0CL

PIC;I I - Conolly diagram showing Au grade contours for Nancy North. Shaded areas +40 g/t Au

62 Coolum. Qld. 14 - 17 May 2000 4th International Mining Geology Conference

 CONTROLS ON HIGH-GRADE GOLD DISTRIRUTION AT VERA NANCY MINE
Near mine exploration focusses o n determining zones of vein
flexure and splay interaction to locate the relatively small
high-grade shoots. Data modelling in a 3D environment is a
critical process for understanding the sometimes subtle changes
in the geometry of the system being explored.
ACKNOWLEDGEMENTS
T h e relationships between grade distribution and splay vein
intersections were first recogniscd by Matthew Readford of
Snowden Associates when he and the author undertook resource
estimation work on the Nancy deposit in 1998. Structural
geologist Roric Smith was instrumental in recognising the
overall extensional structural setting of the deposits in particular
the mesoscale evidence for extension and the normal fault tip line
effects on the deposit margins. Helpful comments and
suggestions were made by an anonymous AuslMM reviewer.
REFERENCES
Huchanan. L J. 1981. Precious metal deposits associated with Volcanic
environments in the southwest, Ariponu Geol Soc Digest.
141237-261.
Butler, 1. Murphy, T and Parks, J, 1999. Vera south: discovery history, in
Exploration under cover, AlG Symposium. pp 25 - 3 I ,
Corbett. G J and Leach. T M. 1998. Southwest pacific rim gold-copper
systems: structure. alteration and mineralisation, Society of
Ewnoitiit. <;eohgi.m, Specid publicution nunrher 6 .
4th International Mining Geology Conference Coolurn. Qld,
Evans, R C and Jones, B H, 1997. The Discovery and cvaluation of the
Vera-Nancy deposit, North Quecnsland, in Proceedings World Gold
'97, pp 233 - 237 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Hedenquist, J W. Iwwa, E. Amhas. A Jr and White. N C. 1996.
Epithermal gold deposits: styles, characteristics and exploration, The
Society (/Resource Geology (Japan): speciul puhlicution number I .
McKinstry. H E, 1948. Mining Geology, (Prentice-Hall).
Morrison, G, Guoyi, D and Jaireth. S, 1990. Textural zoning in
epithermal quartz veins, Klondike Exploration Services, Townsville.
Richards. D R, Elliott, G J and Jones, B H. 1998. Vera North and Nancy
gold deposits. Pajingo, in Geology r , f Australian und Pupuu New
Guinean Minerd DepfJ.7it.C(Us: D A Berkman and D H Mackenzie),
pp 685-690 (The Australasian Institute of Mining and Metallurgy:
Melbourne).
Sims, D A. 2000a. Sampling practice at Vera Nancy gold mine, in
Proceedings 4Ih Internutionul Mining Geology Conference. pp 35-42
(The Australasian Institute of Mining and Metallurgy: Melbourne).
Sims. D A, 2000b. Geological modelling and grade control in a narrow
vein, high-grade gold mine. in Proceedinp 4rh Infernutconal Mining
Geology Conference. pp 65-76 (The Australasian Institute of Mining
and Metallurgy: Melbourne).
White, N C and Hedenquist, J W, 1995. Epithermal gold deposits: styles,
characteristics and exploration. Society of Economic Geologists.
SEG Newsletter. 23: I. 9- 1.7.
14 ~ 17 May 2000 63
64 Coolum, Old. 14 - 17 May 2000 41h Inlernalional Mining Geology Conference
Geological Modelling and Grade Control in a Narrow Vein,
High-Grade Gold Mine
D Sims'
ABSTRACT
The Vera Nancy orebodies. although siniple in overall geometry. arc in
detail geiierally narrow. multi-veined and tluctuating in width. strike and
dip. Tight geological control is required to optimise gold and silver
production froin this bench stoping operation. The processes used to
niotlel the resource and to control ore drive development have evolved
since mining cornnienced in 1997. Grade control is a combination of
orehody sampling. geological data collection. understanding orehody
geometry :ind the optimisation of ore driving and stoping activities.
Global resource modelling utilises niainly drill hole data which is
largely superceded by drivc development data as stope developrnent
progresses. The orebody has a rclatively low nugget effect that assists in
grade estiniation. Rather than rely on sophisticated grade interpolation
nicthods. resource estimation to-date has focussed on developing the
geological understanding of the orehody to ensure the framework for
estimation IS correct. Drill data alone is not adequate to define deposit
geometry lor stoping. Drive data is used 3s the dominant data set for
stope geology modelling once development for a stop: is complete.
INTRODUCTION
T h e Pnjingo Joint Venture (PJV - 50 per cent Battle Mountain
Australia Ltd and SO per cent Normandy Mining Ltd) owns the
Vera Nancy underground gold mine located approximately
S3 k m SSE of Charters Towers in North Queensland (Figure 1 j.
Normandy Mining act as operation managers and utilise a
mining contractor for extraction. Mining began on the Pajingo
goldfield in I087 when the Scott Lode open cut commenced
extraction of quartz-hosted epithermal gold/silver deposits found
in the area. With past production and present resources exceeding
2.5 M 0% Au and 4.0 M oz Ag the field is a significant gold
district and still highly prospective.
Current production comes solely from underground mining
along a I .6 km strike length incorporating four distinct deposits;
Nancy North, Nancy, Vera and Vera South (Figure 2). The Vera,
Nancy and Nancy North orebodies were discovered in 1995
(Evans and Jones, 1997; Richards et a/, 1998) and are in
production while Vera South was located 400 m along strike in
1998 (Butler ct ~ 1 , 1 9 9 9 ) Access
. development in Vera South is
underway for underground infill drilling commencing in May
2000 with production following in 2001. An upgraded mill
capacity ot' 600 000 t per year will see the operation producing
over 220 000 oz Au at peak production in 2001. O n current
rcsourccs the mine has a ten year mine life,
This paper reviews current grade control and modelling
practice at Vera Nancy which has evolved since the mine
commenced development in 19Y7.
DEPOSIT GEOLOGY
Precious metal mineralisation at Vera Nancy occurs ;IS shoots
within moderate to steeply-dipping epithermal quartz veins
hosted in an andesitic volcanic sequence. T h e sequence forms
part of the Drummond Basin with mineralisation dated at around
342 Mya (Porter. 1990: Butler e / 01, 1999). T h e Vera Nancy trend
is hut one shear system in the field and extends to ;I vertical
depth o f 4 0 0 m over a 2 k m strike length.
I. MAuslMM. Senior Mine Geologist, Pajingo Joint Venture. PO Box
I27 I . Charters Towers Qkl, 4820.
4th International Mining Geology Conference Coolurn. Old. 14
;
\
t MTLEYSHON
HIGHWAY- REWARD
! . -
>'
\
* PAJINGO
\
\
5:
t
FIG I - Location of Pajingo Joint Venture
Mineralised structures occur as quartz/carbonate infill veins
along faults accompanied by limited alteration halos (silica,
pyrite, scricitc, carbonate, chlorite, haematite) flanking the veins.
Although in places sulphidcs in the form of pyrite can account
for up to two per cent of the rock, the system is 3 low
sulphidation cpithermal type with economic mineralisation
exclusively occurring within the constraints of the quartz
veining. Gold occurs as electrum with silver (ratio approximately
l : l ) , is generally fine grained (<IS0 m m ) and not visible to the
naked eye. Adularia is absent while the main carbonates are
ferroan in composition. Oxidisation extends to around 70 m from
surface and does not have a significant effect on the resource
which is dominantly below 120 m depth.
Movement on the faults during mineralisation allowed dilation
leading to depressurisation, mixing and boiling of gold/silvcr
bearing fluids within the structures. Ore occurs in steeply
plunging shoots within the dilatant areas. Orebodies are
generally characterised by strong handing and infill textures in
the quartz although in some areas. notably on the deposits' lateral
and down dip margins, strongly banded veins are not
significantly mineralised. Precious metals are contained in quartz
veins and in breccias along the fault plane containing quartz vein
fragments. Silicification and late stage veining lack 'boiling'
textures and are not mineralised. Gold grades can drop from
'ounce-plus' values in quartz vein to 0.01 g/t Au in andesite o r
siliceous andesite breccia across a knife-sharp vein contact.
Each deposit sits o n a major through-going fault
plane/mineralised structure which contains the majority of' the
metal and has the most continuously developed veining. Dips of
the veins range from subvertical to SO" but average at around 70"
to the SW. In detail the veins are not planar but arc rather sinuous
- 1 7May 2000 65
D SlMS

w Ly

b: R

.. .. . .. . .
1,
w w

~459,000t @ 15.6 g/t

1
309,0001 Q 19.0 gfi 56,OOOt @ 11.0 gk
~~ 1,018,0001 @ 18.3 gfi
1 l
14,0001Q 13.0 gff
~
1.969,0001@ 14.1 glt
~ 1
PAJINGO JOINT VENTURE
>A INSITU REMAINING RESOURCE
End of June 1999
E
*
!
-
?!
-
!!

8 Stpccmbrr 1999

Rci 2 - Long section of Vera Nancy deposit.

and undulating exhibiting rapid width, strike and dip variations. Nancy deposit. Both Vera and Nancy share a similar NW strike
Veins are commonly 2 to 3 m in horizontal width but can thicken which differ from Nancy North and Vera South which strike
up to 16 m in places. They develop significant splays at WNW.
inflections where subordinate structures diverge from the main Nancy North has a dominant vein ranging in width from 1 to
vein. Splays can carry economic mineralisation and are stoped 5 m with minor flanking veins while Vera South is interpreted to
over limited strike and dip extents either adjacent to or within have three major veins and three minor veins containing
close proximity to the main vein. Splays can rejoin the main vein economic mineralisation. Nancy North covers 2.50 m of strike
or diverge to extend into and die out in the surrounding host and 250 m of vertical extent while Vera South covers 500 m of
rock. Third order mineralised veinlets 10 to 20 cm wide strike and 550 m of vertical extent.
commonly diverge from the major structures and can extend one Nancy North contains a relatively high proportion of
to five metres into the footwall or hangingwall host rocks at a brecciated vein textures, stockwork veining and short scale vein
low angle or subparallel to the major structure. disruption which is believed to be a function of the deposit's
The Vera deposit contains the most metal and has the widest position at a bend in the main structure. As the understanding of
vein widths - up to 16 m. It covers SO0 m of strike and 200 m of vein morphology and continuity is a function of drill density and
vertical extent. A main vein containing the bulk of the gold is ore driving data, a detailed understanding of Vera South is yet to
flanked by eight minor veins or splays which contain localised be developed. Exploration drilling indicates a highly variable
economic mineralisation and are positioned mainly in the quartz vein texture and mineralogy (Butler et al, 1999).
hangingwall of the main vein. Figure 3 shows a representative The Resources and Reserves for the Nancy, Vera, Nancy North
cross-section through the Vera deposit. Two smaller deposits, one and Vera South deposits as at end June 1999 are as follows (note
named VNU (Vera North Upper) the other Venue (Vera North that Resources include Reserves):
Upper Extended), occur above the Vera Deposit. VNU has been
mostly mined out extracted in the first 18 months of production, Resources:
while Venue is currently uneconomic. Note the shallowly Measured 0.69 Mt 8.9 g/t Au
plunging trend described by the four major deposits is possibly a
feature related the to regional tilting of a palaeosurface (Figure Indicated 1.36 Mt 18.7 g/t Au
2). Inferred 2.15 Mt 13.8 g/t Au
The Nancy deposit exhibits narrower widths but higher grades 14.6 R/t Au
Total 4.20 Mt
in comparison to Vera and consists of a dominant main vein with
four locally mineralised flanking splays. At Nancy, the splays arc Reserves:
positioned mainly in the footwall of the main vein. Nancy Proved 0.53 Mt 12.5 g/t Au
extends 300 m of strike and 300 m of vertical extent with the two
main shoots separated by a barren zone. Figure 4 shows a Probable 1.59 MI 13.9 g/t Au
representative cross-section through the western shoot of the Total 2.12 Mt 13.6 R/t Au

66 Coolurn, Old. 14 - 17 May 2000 4th International Mining Geology Conference

 GEOLOGICAL MODELLING AND GRADE CONTROL

Fic; 3 - Vera cross-section at S360 mE showing development profiles, diamond drill hole traces and down-hole vein Intercepts. Main vein in dark grey.

4th International Mining Geology Conference Coolum, Old. 1 4 . 17 May 2000 67

 I) S l M S

- . - - - - - - .- -
I - - - - - .- - -. - -
I
I
I
I
I
I
I

-
200 RL

100 RL

I
I
!
000 RL

6.,

24.lm

00 RL

DO RL -.. .......- L.. . ......... . . i .......... ....-... ....

1 I
!
!
j I

FIG4 Nancy cross-section at 4.560 mE showing development profiles, diamond drill hole traces and down-hole vein intercepts. Main vein in dark grey.

68 Coolurn. Old. 14 - 17 May 2000 4th InternationalMining Geology Conference


Ground conditions and mining
Ground conditions in the mine ;ire generally good with two to
three widely spaced ( I - 2 In) joint sets common in the host
;tndesitc. Rock strength is high with andesite averaging around
70 Mpa and quartz vein around 120 Mpa. Poor ground
conditions arc associated with faults and. shears which occur
either suhparallcl to the veins o r moderately dipping to the NE or
SW.I3eing ernplaced along it fault system, the orebodies have
outer vein surfaces which can be polished or slickensided
reducing cohesion. Additionally the fault network has k e n
re-activated post-ore to produce orebody subparallel faults which
either cause vein duplication or create waste zones in lault
windows. Orebody parallel fnults located I - 4 m from the edge
of the orebody are common in Nancy and Nancy North but less
prevalent i n Vera. Stope overhreak is controlled by these discrete
structures.
Mining is undertaken using bench stoping using a IS m floor
to floor sublevel interval. Ore drives are mined over the full vein
width out from a central cross-cut. Stopes are drilled with
parallel blastholes. initially fired into a raise-bored slot then the
brow i s retreated to the central cross-cut. All ore driving is under
geological control using two boom jumbos and Elphinstone IS00
- 1700 loaders. Minimum drive mining width is 3 3 m (3.7 rn
where dip is less than 6.5”) although veins down to 0 3 m wide
:ire driven using resuet mining methods and stoped as benches.
Stoping progresses in an overhand ‘bottom-up’ manner with
initial decline access reaching the lower limit of ore in each
orebody prior to stope extraction - no floor or crown pillars
remain and all voids are backfilled with mine waste. No selective
mining is undertaken in within the ore boundary.
Critical aspects for successful mining geology at Vera Nancy
include:
I<eliably modelling the vein system using the infill
underground drilling data its a guide to assist ore drive
development. Using the best vein boundary locational data
available is crucial.
Maintaining tight geological control to ensure drives follow
veins ;is closely as possible whilst minimising the
undercutting o f ore contacts. With generally narrow vein
widths of 2 - 3 m, undercutting is an unavoidable adjunct to
driving. Geological control can in particular minimise the
impact o f undercutting to the stope hangingwall.
Use of all available data to solve daily problems in drive
devclopmont control - this entails using drill data and
existing drive data below or above the level.
Capturing spatial location and grade data from drive mining
to assist in accurate stope geology modelling.
In ;I narrow vein, relatively high production rate mine, good
geological control during driving and stoping is a key element in
maximising profitability by reducing ore losses and dilution.
I<eliahlc data collection, interpretation, modelling and data usage
all contribute to quality grade control.
DATA COLLECTION . i’ - width intersections and used to interpolate assay grades into
Data collected at Vera Nancy includes surface and underground
drillcore logging and sampling, face mapping and sampling, back
mapping and geotechnical profile mapping. Detailed discussion
of sampling methods used at Vera Nancy is given elsewhere in
this volume (Sims. 2000).
t RKWCmethods involvc the facc being fired in two parts - one half of
the face i s fired first in the waste zone and bogged as clean as
possible before the ore portion of the face is fired. This reduces the
amount of waste takcn with the ore thus maximising rccovered
grade.
4th International Mining Geology Conference Coolum. Qld,
GEOLOGICAL MODELLING A N D GRADE C O N I K O L
The orebodies are delineated with dominantly HQ/NQ core
surface drilling on a nominal 40 m x 40 m spacing to yield an
Inferred Resource. This is followed by 20 m x 20 m infill drilling
from underground drill sites. using LTK60 core to upgrade the
resource to Indicated status. Average hole length for LTKGO
drilling is around 12.5 m with Eastman surveys initially at 12 m
then every 3 0 m. Underground drilling is mostly undertaken from
purpose-mined hangingwall drill drives.
Ilrilling orientation is on sections orthogonal t o the Vera
Nancy mine grid which is oriented approximately parallel to the
strike of the deposits. Local vein flexures can see the vein
trend/drill hole intersection angle vary by 10 - 20” from
perpendicular. Once the ore drive in the main vein is established
on each level IO m spaced infill drilling (‘sludging’) is
undertaken from the drive to investigate splay veins observed in
the drive or indicated by the 20 m spaced drilling. Early sludging
was undertaken using a percussion blasthole rig ( H 104) but
unreliable width and grade data led to using a truck mounted
LM22 rig drilling LTK48 core. LM22 holes are typically 12 -
2.5 m long.
Core is logged and sampled on geological boundaries that
reflect the sharp grade distribution changes within the deposit,
digitally photographed and then half-sawn for fire assay. LTK48
core is whole core assayed. Logging is undertaken using a
barcode-based logging system (DATCOL) which delivers a
directly loadable ASCII file which is uploaded to a Vulean drill
hole database via UNIX scripts.
Each ore drive cut is geologically mapped and chip sampled
with sample data uploaded into Vulcan as short drill holes
positioned across the face. Once the drive is completed the entire
length is washed down and the boundaries of the quartz
windbreccia zones and significant fault planes are paintcd on the
backs and w;ills for survey pick-up. The pick-up strings are
loaded into Vulean to provide hard locational data for boundary
control. Although the host rocks are non-magnetic survey
inaccuracy in diamond drill holes routinely sees surface holes 3 -
5 m out in location while underground drill holes can be 0 3 -
2 m out in cross-strike location. .
GLOBAL RESOURCE MODELLING
Modelling of each deposit (global modelling) is undertaken when
underground 20 m x 20 m infill drilling is completed. Two types
of data is used for this stage of modelling:
Spatial data is used to create the 3D orebody interpretation
wireframes and consists of orebody boundary location
information from surface and underground drilling. These
wireframes are subsequently used to construct the vein block
models. Vein boundary information from underground
development is not used in this modelling and in areas where
underground drilling has duplicated or repeated surface
drilling only the underground drilling is used. This aims to
lessen the effect of locational inaccuracy.of.surface drilling
on the model wireframe geometry.
0 Sample assay information, which is composited into vein
the block model, is restricted to drill hole data alone. A
second wireframe which uses all surface and underground
drill data is constructed solely for sample composite
generation.
This approach produces a block model with vein geometry and
location based on the more spatially accurate underground
drilling data in the bulk of the ore zone and a sample composite
database which includes all drilling data for grade estimation.
Considerable effort is expended in ensuring the geology
interpretation accounts for all data and is sensible in light of
development experience - understanding the deposit geology is
the key to a good estimate and model at Vera Nancy.
14 - 17 May 2000 69
Wireframing
Wireframe construction uses the following process steps:
1. Cross-section and plan paper interpretation of structure
trends and orebody arrangement is undertaken on A0 paper
plots. Sections every 20 m are generated at 1:SOO scale with
plans plotted at 50 m RL increments. Any available ore
drive vein profiles or plan mapping is drawn on the sections
and plans to assist in interpretation. Vein grades and
mineralisation lithologies are annotated and coloured onto
drill hole traces and interpreted into series of veins and
mapped to plan for 3D validation. The interpretation uses
both surface and underground drill data to develop the
structural arrangement of the veins.
The boundary of the orebody in each intersection is
positioned by locating the change from a ‘mineralisation’
lithology (quartz vein, brecciated quartz vein, strongly
silicified brecciated andesite) to ‘host rock’ lithology
(unsilicilied andesite. brecciated andesite. silicified
andesite). Assay data can be used to override lithology data
if assays >4 g/t Au occurred outside of ‘mineralisation’
lithology but are on trend of a recognised structure. If
internal grade distribution appears to be indiscernible on
the basis of vein geology then the entire structure is flagged
as the mineralisation intersection even if only part of the
structure carries grade.
Although such an approach may dilute some ore
intersections if there is no obvious visual control for
mining, it is assumed that the whole vein will be mined as a
single entity at the ore drive and bench stope stage.
Selective mining of the vein can not be undertaken if visual
control is absent.
2. Once the interpretation has been resolved 20 m sections are
then sliced through the drilling dataset in Vulcan on-screen
and separate contact string layers for each vein
(hangingwall and footwall) are constructed per section
using the paper interpretation as a template. The contact
strings consist of points snapped to drill holes at the
determined vein contact locations. For each vein
hangingwall and footwall surfaces arc modelled separately.
Upper and lower limits of the interpretation are placed
above the extent of’ data or beyond the lower limit of drill
investigation. No interpreted points (ie points not on drill
holes) are added at this stage. The boundary string
interpretation is then checked by a second geologist.
A boundary polygon is built linking points around the outer
3.
limit of the interpretation for each vein surface. Each
contact layer is triangulated separately with all
interpretation string points disconnected and using the
boundary polygon as a limiting element. This surface
triangulation is constructed by projecting the points onto a
plane dipping parallel to the orebody. Trending is not used
as it tends to increase the number of crossing hangingwall
and footwall facets.
4. Pairs of vein boundary surfaces are compared to ensure the
process has produced satisfactory surfaces. If surfaces cross
in zones of narrow widths then control points are inserted
into the boundary layers to ensure the crossing areas are
eliminated.
5. Hangingwall and footwall surfaces are melded together to
create solid triangulations. which are then trimmed via the
Vulcan boolean option against adjacent veins. topographic
surfaces, etc. This method of solid triangulation generation
is used rather than the more commonly used method of
solid triangulation generation by sectional polygons as
surface triangulations are easier to update with infill
information and can be better manipulated t o eliminate
touching or crossing facets.
70 Coolum. Old. 14 . 17 May 2000
6. Triangulations are validated to ensure the solids ;ire closed.
not self-intersecting and topologically correct. These
boolcaned triangulations arc used for composite sample
generation and for block model construction.
Compositing and block modelling
Grade estimation to yield an Indicated Resource model involves
the following stages:
I
The vein solid triangulations are used to generate
‘vein-width’ assay composites from diamond drill hole
assay data. This approach produces a single composite with
values for Au and Ag, which extend from one side of the
vein model to the other. No internal grade distribution detail
is retained in compositing. Each vein has its own set of
composite files and the composite is tagged with a vein
code during construction. Length-weighted averaging of the
uncut assay data is undertaken to produce the composite
grade and a Vulcan software enhancement developed for
PJV also resolves true and horizontal width of each
intersection given a generalised vein dip and strike.
Composites are checked to ensure correct coding. Statistics
are run on the composites to determine cut values which
approximate the 97.5th percentile. There is a degree of
smoothing of individual uncut high assay values during the
compositing stage by averaging the grade across the vein.
The wireframes are used to generate a ‘full-width’ or
‘seam’ type block models where single blocks extend from
one side of the vein to the other. Block width edge
resolution is 0.25 m with block size in the other two
dimensions being 5.0 m x 5.0 m. The model is constructed
as dip aligned being parallel to the average vein dip. The
‘selective mining unit’ block size of 5.0 m long x 5.0 m
high x wireframe vein width evolved from running models
with larger block sizes and finding the block size is too
coarse for mine design purposes. Given a 20 m x 20 m infill
drilling pattern this is the finest block size used with this
data. Blocks are given a vein identification code at
construction using priorities and inversions of solid
triangulations.
Grade interpolation using Inverse Distance methods then
estimates Au and Ag grades into each vein model using the
vein’s composites as samples. This in effect creates hard
boundaries on assay data as only composites coded with the
correct vein identification arc used for estimation thus
reflecting the sharp grade change evident on vein
boundaries. Since the composites used for estimation
include surface drill hole intersections which are not used
in the block model vein wireframcs, a cross dip search of
sufficient width is required to ensure all relevant samples
are used during block estimation. Inverse Distance
weighting is applied using isotropic weighting within the
ellipse. Trials running Indicator Kriging models on global
resources for Nancy determined that Inverse Distance
interpolation delivers acceptable estimates for this stage of
modelling. Variography by Snowden Associates indicates
that a low nugget effect (0.25) is present in these deposits.
The model is then validated both visually to inspect grade
smearing (blocks loaded on screen compared to
composites) and statistically (the average grade of samples
is compared to the average grade of the blocks). A number
of interpolation runs arc made to optimise the estimation
results. When the model is deemed acceptable, block model
scripts are run to calculate vein width (block volume/block
profile area) and accumulation values (width x gold grade).
Waste blocks are also scripted with a default grade of 0.1
g/t Au to allow reserve reporting of dilution. Resources are
4th International Mining Geology Conference

then reported using an accumulation value cut-off of I S gm
with a 4.0 g/t Au grade minimum lor a vein by vein
resource breakdown.
N o domaining beyond separating individual veins and deposits
is undertaken as mineralisation styles are similar within each
deposit m d no significant oxidation effects occur in the
orebodies.
Early estimations used a block cut-oft of 4.0 E/t Au for
resource calculations but i t is considered that assessing grade
alone without examining block width is not adequately
representing ‘mineability’ resot~rccs.A I S glm (with a 4.0 glt Au
per block minimum) cut-off equates to a minimum vein
widthlgrade requirement more aligned to mine design
experience.
Reserves
Once the resource model is complete the reserve estimation work
undertaken by the senior mining engineer commences. All
reserve estimation is undertaken using a bench stoping method
with IS m sublevel intervals. Reserve generation includes the
following stages:
I. Model inspection by section and plan slices to determine
grade and width continuity. vein spacing and dip variations.
’The orebody can be divided into areas where the vein(s)
horizontal width is either generally less (‘narrow’) or more
(‘wide’) than the drive minimum mining width (3.5 ~
3.7 m).
2. Drive and stope outline polygons are constructed on S m
section intervals for each vein to include expected dilution.
A solid triangulation is built using the polygons and a
reserve is generated against the block model for the drive or
stope. The design limit of the drive or stope is determined
by inspecting the vein grade compared to the required vein
grade to cover the cost of mining ore drives at the periphery
of the deposit (4.5 g/t Au). In areas where veins arc too
close to extract separately by leaving a pillar, or in areas
where veins merge, design decisions are determined by
evaluating and reserving a variety of options through solid
triangulation construction. Major fault structures are
modelled as individual elements while ground conditions
and expected dilution arc assessed qualitatively based on
ore drive geotechnical profile mapping (see below).
GRADE CONTROL
Grade control during ore driving is a critical aspect of mining
geology at Vera Nancy and has evolved to current practices over
the past two years of mining.
Sampling
During ore driving each round or cut of material is sampled
twice; once as a chip sample across the mining face and a second
time when the ore from the cut is trucked to the surface and
dumped in surface stockpile hays. Sims (2000) discusses
sampling of these materials. Thc ‘grab’ samples taken on the
stockpiles are used to classify the ore into a series of grade
ranges used for mill feed blending while the development face
chip samples arc used for ore drive control and as sample data
for stope scale block modelling.
Ore feed classifications to the mill are high-grade (+20 g/t
Au), ore ( S - 20 g/t Au), low-grade ( I - 5 g/t Au) and marginal
(0.3 - 1 s/t Au). Only high-grade and ore is fed to the mill with
low-grade being retained for later milling following mine
closure. Marginal material is stockpiled at the mine as i t is
currently not economic to treat. The low pyrite content and
non-refractory nature of the ore ensures long-term storage of
low-grade ore does not adversely effect milling performance.
4th International Mining Geology Conference Coolum, Qld, 14 - 17 May 2000
GEOLOGICAL MODELLING ANI) GRADE CONTROL
Geological control of development
Although sampling Faces for grade estimation and sampling truck
dumps for mill feed blending are important activities the best
opportunities in maximising mill head grade is in optirnising
geological control during ore driving and stoping. Having a
‘bottom-up’ mining method precludes selective scheduling to
maximise head grade and sequences are relatively inflexible.
Ensuring grade maximisation is a key objective.
Each development face is mapped on I :SO scale mapping sheet
(f;igure 5 ) noting vein position and dip in the face, vein structure,
texture and geometry, faulting and jointing, alteration and the
presence of thin veining in the host rocks or drive walls. The face
is chip sampled based on geological domains and an estimate of
the grade-range of the face is made. The next cut boundaries are
painted on the face. the desired width and height written on the
lace and one or two arrows are painted on the backs to indicate
the direction in which the next cut is to be taken. Arrows may be
in different directions if the vein is opening out in width. The
geologist has the mapping sheet from the previous face with
sample grades to assist in decisions regarding the correct position
of the drive hangingwall or footwall. Plans arc also carried
showing the block model outlines for the level and the trace of
the development level immediately below the drive.
A significant issue in ore drive control is the rapid change in
strike direction and width which occurs in some pans of each
deposit. Fluctuations which can cause ore drives to run off or not
fully recover the vein along the level generally occur on a
spacing less than the infill drilling. The resource model may not
predict short-scale changes and so driving involves close
monitoring of information from drives above or below the
current heading.
When driving runs off or fails to completely recover the
vein(s) stripping is undertaken to extract the portion left behind.
Where large amounts of veining appear to be left behind in the
walls LM22 drilling or sludging may be undertaken to determine
the thickness and grade of the veining left behind in the wall. An
increasing level of caution regarding sizeable wall stripping has
developed in the mine as poor control on stripping can often lead
lo increased undercutting of ore boundaries and hence higher
dilution levels during stoping. Often small strips in the walls are
taken with the current face to clean up minor amounts of quartz
veining left behind from the previous one or two cuts.
When a heading needs to be turned sharply to follow a change
in vein direction the ability to change direction is limited by the
position of the vein in the face relative to the shape of the drive
where the jumbo is to operate. Since the jumbo booms are
around 5.0 m long sharp turns are not possible as the end of the
boom often hits the wall before reaching the desired drilling
angle on vein boundary holes. In such cases a strip cut is taken to
modify face geometry before the next cut is taken. In all
circumstances where a Pace requires a significant amount of
turning, the mine shiftboss is consulted to ensure what is desired
by the geologist is possible. This advice often dictates the
requirement for ‘pre-stripping’ a face or not for the next cut.
The best ore drive geological control is totally ineffectual if the
mining contractor does not ensure markups are rigorously
followed and optimum face boring practices are employed. The
contract currently in place at Vera Nancy has a financial penalty
for the contractor i f face mark-ups are not followed. A maximum
overbreak tolerance of 0.2 m on each boundary compared to the
mark-up dimensions is allowed before a penalty applies. For
example if a face is marked up at 4.5 m wide by 4.5 m high a
maximum allowable dimensions at the end following the
extraction of that cut is 4.9 m by 4.9 m.
Oversized faces are inspected by the shiftboss and the Pajingo
Joint Venture mining supervisor to determine if the overbreak is
a mining quality issue or an unavoidable ground conditions issue.
This is generally based on locating the position of the butts from
the last cut and inspecting ground quality. If the overbreak is a
71
 Pajingo Underground Development Face Sampling cut N ~ . .
-
Location :
I
,v I o7 ?r
Date :
U / I /Go Cut Sent As
The: . 00:
_ 10

Survey : I X , I,., a'DGeologlst :

L
Low Grade Waste
Type of Cut: __ SUaN TYJ
Face Dlmensions: 5.8 >( 4,% Mark Up Dlrnenelona: --
Swlch '.'As
I I I
S r a n i 50
! I !

Fic; S - Face mapping sheet.

Coolurn. Old. 14 - 17 May 2000 4th lnternatlonal Mining Geology Conference

72

function of poor practices the jumho operator concerned is
counselled and the mining contractor financially penalised with
greater penalties for larger overbreaks. Generally mining
contractor pcr1orm;ince in following mark-ups and minimising
overhreak is very high.
I t is possible to have some quartz veins or quartz breccia zones
i n the face cxrying suheconomic grades where an adjacent vein
may be hetter mineralised. This is more common near the deposit
limits along strike or down-dip. Not all quartz carries ore and the
previous face sampling data is used to guide the next markup.
Ideally the hangingwall of the vein is positioned 20 crn
inhoard of the drive hangingwall. This is to minimise
undercutting of the vein hangingwall, which is important in
reducing stope dilution and to ensure optimal positioning of the
longhole rig to allow drilling along the ore contact above or
helow the drive. The minimum mining width of 3 3 - 3.7 m
(determined by loader size) ensures undercutting is a ccmmon
occurrence hut geological control aims to position i t to the
footwall rather than hangingwall.
Veins up to 8 in wide are mined full width in a single pass
while wider veins ;ire mined along the footwall at 6 - 8 m wide,
sludge drilled to lix the contiict in detail and cab!cholted with
6 in bulhed single strand bolts. The veins iire then stripped to full
width in one or two passes with additional cable bolting during
or after stripping. Veins in Vera out to I6 m wide have been
driven in this way.
Veins less than I m wide or low-grade veins around 2 m wide
are mined using resue methods which increases recovered grade.
The ‘wiiste’ from a resue cut is trucked as marginal ore to a
marginal pnd which. following stockpile sampling. may become
low-grade ore or be retained on marginal pad at the mine.
To-date, modelling using surface and underground drilling
alone tends to overstate vein width hut understate vein grade.
When driving is completed the vein model is updated for a stope
model between levels ‘(see below). Additionally where LM22
drilling is undertaken on adjacent veins 1:250 scale sections on
I O m centres arc plotted and detailed interpretation using face
mapping/sampling data and infill drilling data are Undertaken in
section and plan.
Geotechnical input to stope design
An estimation of predicted ground behaviour during stoping is
required to locate areas of high dilution risk for mine design
purposes. The majority of stope dilution issues encountered
to-date arc related to the effects of discrete fault surfaces
paralleling the orebody houndaries coupled with low angle joint
sets particularly in areas where poor drive control has undercut
the ore boundary. In extreme cases up to 4 m of hangingwall
dilution can occur requiring re-slotting of the stope to leave an
ore pillar.
A geotechnical profile mapping method has been devised in
conjunction with Colder Associates which rates the risk of
hangingwall and footwall dilution along each ore drive on
sampling points every 10 m down the drive. The system bas
evolved from a scan line mapping methodology through a
window mapping system to the current process which looks at a
section profile of the drive.
A profile sketch is made of the drive showing development
outline, ore boundary position, significant joint sets and fault
planes. Discontinuity orientation and characteristic data is
collected and an assessment matrix is completed on the mapping
sheet that determines the risk of stoping dilution for both the
hangingwall and footwall surfaces. The rating is determined by
summing a set of weights that relate to specific geotechnical
features (such as fault frequency and distance from ore boundary,
presence of low dipping joints. etc) and classifying the resultant
number into ii risk category.
4th International Mining Geology Conference Coolum, Qld, 14 - 17 May 2000
GEOLOGICAL MOIIELLING A N D GRADE CONTROL
The rating for each section is then transferred onto a
longsection showing the drives in each orebody labelled with
either low. medium or high dilution risk ratings along their
lengths on I O m spacings. The longsections can be used to locate
areas requiring additional hangingwall or footwall ground
support via cablebolting or to determine areas where drill and
blast parameters may be changed. Introduced in mid-1Y99 the
dilution risk rating is proving successful in locating areas of high
dilution risk.
STOPE GEOLOGY MODELLING
Once ore driving is completed on the upper and lower levels of a
bench stope a remodel of the ore boundaries is undertaken for the
stope between the levels using the most current information. The
resource model based on drilling data is not accurate enough in
its spatial position for blasthole ring design and becomes
superceded by a stope geology model.
Geological boundary back string mark-up, pick-up and
geological mapping is undertaken once a drive is completed. The
vein boundary and fault position back strings are imported into
Vulcan and used to fix geological features in 3D space.
The process for stope geology modelling is as follows:
I. Drive ‘as-constructed’ wireframes, face sample ‘drill holes’
and ore boundary back strings are loaded on screen and the
geological mapping and chip sampling hard copy plans and
the folder of drive face mappinglsampling sheets are
gathered for reference.
2. A section is sliced with a I m width across the drive at the
location of the first chip sample taken for the drive. The
back strings show the position on that section of where vein
boundary sits in the backs or walls while the face mapping
sketch shows the appearance of the face at the time of
mining. Although the short drill holes constructed from the
sample data taken across the face may not coincide
accurately to the actual position of the face due to plotting
errors, the back strings provide hard locational data for
modelling. Using the face mapping sketch two strings arc
digitised on screen representing the orebody hangingwall
and footwall. Any fault planes are also digitised on the
screen.
3. The section slice is advanced along the drive until the next
face sample is encountered usual 3 - 4 m along strike. The
section plane is reoriented if required to ensure a true
section for that part of the drive is obtained parallel to the
sampled face. The process of matching back string to
geology mapping face sketch is repeated. Special attention
is given to grade distribution in each lace which may
indicate ore outside the back string limit. For example, thin
peripheral veining can carry extraordinarily high gold
grades through part of the Nancy system in what appears to
be andesite. The process continues until the end of the drive
is reached. This may involve up to 100 face maps. Once the
boundary strings are digitised they are validated by visual
inspection checking vein dips and locations against face
mapping sheets and by doing fly-through views along the
drives checking digitised strings against back pick-up string
locations (Figure 6).
4. The strings digitised as face ore boundaries along the length
of the drive are used to construct solid triangulation
surfaces (termed ‘ribbons’) representing either the footwall
or hangingwall surface of the orebody as mined in the drive
(Figures 7 and 8). Faults are modelled as triangulated ’
surfaces in a similar way. Checks on face chip grades
establishes the economic limits of the orebody along strike
as defined during driving and the ore boundary surfaces arc
73
 F I G6 - View along a drive ‘ascon’ triangulation with chip sample drill holes. orc contact back strings and ore boundary strings visihlc.

Flci 7 - Same V I C W dong dnve triangulation with ore boundary trimgulation

I
74 Coolum. Old, 14 - 17 May 2000 4th International Mining Geology Conlerence

FIG8 - View onto drive with ore boundary strings, ore boundary triangulations and face samples drill holes visible
only produced within these limits. The ore boundary
surfaces are then linked between levels to produce
hangingwall and footwall boundary surface triangulations
for the stope that encloses only ore (Figure 9).
S. Final validation of ore boundary wireframcs uses LTKGO
drilling data to ensure no peripheral veining or wider ore
zones have been overlooked between levels. Once final
validation is complete the stope ore boundary surfaces are
reviewed with the ring design mining engineer and blast
hole design can commence.
6. A grade control block model is produced which uses the
drive and stope ore boundary surfaces converted to solids
and used to define block edges using the ‘full width’ typc
block modelling approach described above. Block size is
reduced to 2.5 m along strike x 2.5 m up dip to reflect the
closer spaced sampling data from face samples. Blocks are
only constructed within the stope model wireframcs hence
only occupy strike extents identified during driving as ore.
Sample composites are built using the chip sample ‘drill
holes’ and codcd in the same way as the global resource
model composites. Estimations arc made using similar
methods to those described above and the models arc
reserved against diluted ring design polygons 10 yield
expected stope tonnes and grade.
4th International Mining Geology Conference
Coolurn, Qld, 14 17 May 2000
GEOLOGICAL MODELLING AND GRADE CONTROL
Reconciliation of models with production to-date (Sims, 2000)
indicates model reserves overstate tonnage by around nine per
cent while grade is understated by around eight per cent. Around
99 per cent of reserve ounces arc produced. Although Inverse
Distance interpolation methods perform reasonably in stope
estimation a better local estimator of grade is required and
further kriging work is in progress. An accumulation estimation
approach, whereby width and accumulation (width by grade) are
modelled in an attempt to reduce adverse support effects from
different sized samples, is considered an essential improvement
and is being investigated.
CONCLUSIONS
The Vera Nancy orebodies are intensive in the amount of
geological control required to successfully model and extract
their ore. Data collection, interpretation and grade control
focuses on developing an understanding of each deposit’s
geometry on a detailed scale for both drive control and stope
geology. To-date the focus has been on data collection and
interpretation to understand and predict the shape of the deposits.
Sophisticated grade interpolation methods have not been widely
employed. Inverse distance grade interpolation aided by a low
nugget factor performs adequately on a global scale but needs
improvement as a local grade estimator.
-
75
 D SlMS

Love1

FIG9 - Stope geology models for Nancy 9X6W and Y86FWW stopes.

ACKNOWLEDGEMENTS Porter. K G. 1990. Pajingo Gold Deposits. in Geology of rhe Minerul

The following geologists have contributed to dcvcloping thc
geological methods at Vera Nancy since mining commenced;
Dave Hall, Allan Hell, Sharon Turner, Michael Jackson, Jack1
Stott and Chris Chambers.
REFERENCES
Butler. I . Murphy, T and Parks, J, 1999. Vera south: discovery history, in
Exploration under cover, A l G Syniposiuni,pp 25-3 I
Evans. R C and Jones, B H, 1997. The Discovery and evaluation of the
Vera Nancy deposit. North Queensland. in Proceedings Mrld Gold
'97, pp 233-237 (The Australasian Institute of Mining and
I Metallurgy: Melbourne).
Deposits of Ausrruliu und Pupuu New Guineu (Ed: F E Hughes), pp
I463 - 1487 (The Australasian Institute of Mining and Metallurgy:
Melbourne).
Richards, D R. Elliott. G J and Jones B H. 1998. Vera North and Nancy
gold deposits, Pajingo. in Geology rf Ausrrulian und Pupuu New
Guineun Minerul Denosirs E d s : D A Berkman and D H Mackenzie).
pp 685-690 (The Ahstralasian Institute o f Mining and Metallurgy:
Melbourne).
Sims. 1) A. 2oOO. Sampling practice at Vera Nancy goltl mine. in
Proceedings 4'* Inrernurionul Mining Geology Conference pp3.S - 42
(The Australasian Institute of Mining and Metallurgy: Melbourne).

76 Coolum. Old. 14 - 17 May 2000 4th International Mining Geology Conference

Mine Geology Practices at the Sunrise Open Pit
E Haren’ and P Williams2

ABSTRACT This paper outlines the processes involved in developing and

The Sunrise deposit is one of Australia’s 1;irgest and most profitable gold
tlcposits. I t has consistently and spectacularly outperfornied every
resource iriodel created. Currently over the life of the Sunrise pit there
has hecn a 5 0 per cent under estimation of ounces mined. Without a solid
hasis for predicting the tonnes and grade or the spatial location of
iiiiner:ilisation. niine pl:inning becomes problematic. Recently. through a
better understanding of the mineralising processes the reconciliation of
the resource iiiodcl has improved to he in the order of ten per cent under
on ounces riiinctl. This pcipcr will tlcscrihc how the mine geologists at
l’laccr Granny Smith have implemented the changes required to improve
the resource model. Work began with the development of a
three-dimcnsion;il lithologic;il and structural model based on historical
drilling and pit incipping. Continual updating of the geological model
with grade control logging. assays and in pit face mapping. now allows
lor the on-going improvement of the resource model and the planning of
mine developinent drilling.
INTRODUCTION
The Sunrise Pit is located 32 kilometres south of the Granny
Smith mill, which is 950 kilometres northeast of Perth in Western
Australia. The Sunrise deposit was discovered i n 1992 and an
initial resource of approximately 400 000 ounces was estimated
based o n predominantly oxide drilling. Mining development
commenced in 1994 and ore production the following year with
mining to-date (January 2000) producing approximately I .I)
million ounces. Current indicated and inferred resource arc
6896 kt at 3.37 g/t for 747 000 ounces with reserves of 4019 kt at
3.48 g/t for 450 000 ounces. Mining is expected to continue until
February 2002. Placer Granny Smith, a joint venture between
Placer Dome (60 per cent) and Delta Gold (40 per cent), operates
the mine. The Sunrise Pit forms part of a much larger gold
deposit, with known resources at depth currently being drill
tested.
An important aspect of the development of the Sunrise deposit
has been the consistent underestimation of the total contained
metal. This has led to a number of problems, including
Conservative pit optimisation, and uncertainty in definition of ore
blocks, resulting in overly selective oreblocks with potential for
loss of ore to low-grade or waste stockpiles. Solution to the
reconciliation problem therefore has significant cost benefits to
the mining operation at a number of critical points in the mining
process.
managing the geological model. It is then demonstrated how
converting the conceptual framework and geological model into
operational tools used on a regular basis has reaped benefits. The
most important of these are improved reconciliation, improved
resource drilling economics and improved geological manage-
ment in the daily operation of the pit.
Conceptual framework
The processes that led to accurate definition of ore prior to
delivery to the mill are complex. In many operations, grade
control is the major process that determines the quality and
quantity of mill feed, and the resource model determines the
expected mill feed from ‘pre-mining’ assay d a ~ a . The
reconciliation between actual and expected delivery of ore, and
the recovery of metal. is an important measure. because most
planning and development activities at the operation rely on the
resource model. Large differences between the resource
prediction and the actual delivery could mean large losses in
potential reserves due to a number of planning issues:
extremely conservative pit optimisation;
conservative sampling limits may not sample areas of ore;
scheduling for mining is not optimal;
waste dump designs are too large resulting in unneeded
expenditure for release of ground, environmental bonds, etc;
ore pad designs are too small; and
scheduling for milling is not optimal.
The most important factors that lead to improved
reconciliation and planning practices are outlined in the ‘linkages
chart’ shown in Figure I .
MODELLING
DEVELOPMENT
DRILLING

To ensure that the mine was operating at peak efficiency, the

geology team at Sunrise approached the problem at its most basic GENERATION INTERPRETATlOh
level at the time of transition between mining the oxide resource PIT W A L U
and the more critical fresh rock resource. SliK Consulting were FLOOR
invited to initiate the geological evaluation while utilising their
s(ructura1 and geological experience. The fundamental problem
was to develop a geological understanding of the deposit, that CONTROL
would allow better resource definition, improved grade control
practice and allow better in and near mine targeting A conceptual ORE BLOCKS
I J
framework tor the process has been developed, which shows the
inter-relationships between the various mining activities,
identifies the key geological inputs required, and allows an
estimation of the cost benefits of the geological inputs. , MILL

I, MAuslMM. Geologist. Placer (Cranny Smith) Ply Ltd, PO Box 33.

Laverton WA 6440.
FIG I - Conceptual framework of linkages between factors for the
2. Managing Director, SRK Consulting. 25 Richardson Street. West on-going development and mining of Sunrise.
Perth WA 6872.

4th International Mining Geology Conference Coolum. Qld. 14 - 17 May 2000 77

E HAREN and P WILLIAMS
The resource model sits at the top of the chart, as the primary
input to the mining process, and the mill process sits at [he
bottom of the chart. as the primary output from the mining
process. Directional arrows show the factors and
inter-relationship between the factors. Each of the factors
represents a dynamic process in its own right, and in many
operations these processes are either ignored (for example pit
mapping) or not integrated into the overall thinking of the mining
team. In either of these cases, important data that leads to
improved efficiency or cost-savings for the overall operation are
not available to [he operations or planning departments. The
‘linkages chart’ highlights the importance of developing a quality
geological model for the deposit. Removal of the sectional
interpretation from the inner circle, for example, results in an
inability to develop a 311 geological model, and also severely
restricts ability to predict geology and grade on the next bench to
be mined. Lack of a geologically realistic expectation of grade
distribution means a total reliance on grade control numbers - a
‘blind acceptance’ of the results of drilling, assaying and numeric
interpolation - without any reality, check against an expected
model. Consequently, any needs for improvements in grade
control or ore mark-out processes are unlikely to be recognised,
let alone implemented. In this contribution, we discuss the
various aspects of the chart, and use the results to discuss the
economic advantages of implementing an integrated geological
model in many aspects of the mining process.
HISTORICAL RECONCILIATION RESULTS
Positive reconciliation between grade control and resource
models has charactcrised the history of mining at Sunrise. Over
the life of the Sunrise pit the reconciliation between grade
control and the various resource models has meant an extra
610 000 ounces of gold has been mined. This is made up from an
extra 16 per cent in tomes and 27 per cent in grade to make an
overall gain of 47 per cent in ounces.
% Difference Between Grade Control and Resource Models
-50
Fic; 2 - Per cent difference between grade control and resource model predictions up to June 1998
70 Coolurn. Old. 14 - 17 May 2000
Figure 2 summarises the percentage differences between grade
control and resource models up until the time of implementation
of results from the new geological model to geological practices
in the pit.
Full-scale mining commenced at Sunrise in September 1996.
Small volumes mined have amplified the percentage differences
shown in the graph before this time. By January 1997 most of the
transported mineralisation had been mined. This zone of
mineralisation proved to be more widespread than initially
estimated. The grade however was usually only slightly higher
than predicted. From January 1997 to December 1997 the ore
mined was predominantly oxide. The end of oxide mining
occurred during August 1998. oxide mining recommenced from
June 1999 to the present. At the time of transition between oxide
mining and fresh rock mining, the positive reconciliation was
increasing (Figure 2) and it was recognised that the distribution
and controls on ore were not well enough understood to give
confidence that the operation would extract the maximum benefit
from the orebody. Consequently, the decision to develop a new
resource model, based on better geological modelling, was taken.
DEVELOPMENT OF GEOLOGICAL MODEL
Following the discovery of the transported and oxide resource,
the exploration department discovered the deeper fresh rock
resources through a program of mine-based exploration. The drill
spacing and depth for the initial geological model meant that the
overall deposit style and core scale lithologies and structures
were reasonably well-defined. However, the nature of
mineralisation. controlling structures and distribution of
lithologies at the scale necessary for development of the resource
at a mine scale was not adequately defined.
Mining geologists needed to consider features on the scale of
metres to tens of metres in an active often fast moving mining
environment. Pit personnel such as shotfirers and production
- By Month
250
200
150
too
50
-50
4th International Mining Geology Conference

engineers required specific accurate and simple information
about the material they were dealing with. Good predictive
information on structures which would be encountered,
structures known to cause problems, and a working
understanding of how different conditions (wevdry, shearing,
silicification) interact with mineralisation and affect rock
mechanics was also required.
Development geologists also have a number of concerns that
generally require understanding of the geology of the deposit at a
larger scale than the exploration scale. At Sunrise the
development drilling scope requires information that can define
ore pods or ore shoots at a scale of IS - SO m. This requirement
demands a high level of understanding of the relationship
between detailed structural geometry and ore distribution. This
detail of understanding was not available at the completion of
exploration drilling.
Geology of the Sunrise deposit
Improvements in resource modelling, as well as within-mine and
near-mine targeting are fundamentally dependent on an improved
understanding of the geology of the Sunrise deposit. The
geometry of the Sunrise deposit had not been systematically
documented prior to mining of the oxide resource. Work by
Standing (1993). Ojala (1994, 1995). Newton (1997) and Newton
et a1 (1998) had established the generalised geometry, and
inferred that the localisation of mineralisation is the result of
heterogeneities caused by inflections in major shears. Because of
the generalised nature of this previous work, a program was
established to develop a detailed geological model that would
address mine geology and development geology needs.
This work generated a robust three-dimensional structural and
lithological model of the deposit based on a series of 40
cross-sections and three level plans produced from resource
drilling data and pit mapping data. The rocks are an interlayered
sequence of tine grained sediments, banded iron formation,
volcanic and volcaniclastic rocks of intermediate composition
and minor porphyritic felsic intrusive rocks, forming four major
correlated units with two additional units separated by major
shears. These units were used as part of the 3D geological model.
'
A mineralogical and geochemical study of the mineralisation
and alteration system was also undertaken in order to develop a
fluid flow model. This model linked the structural framework to
mineralisation envelopes, and allowed mineralisation envelopes
to be better constrained in the resource model.
The key findings from the geological studies are as follows:
Mineralisation within the Sunrise deposit is within three major
sites of deposition (three major 'sryles '):
1. shear-hosted mineralisation - characterised by wide
alteration assemblages and dispersed 'low-grade'
mineralisation haloes;
2. pod mineralisation - characterised by high-grade, discrete
quartz-carbonate veins in narrow alteration selvedges.
These pods contain the largest number of ounces in the
deposit; and
3. BIF-hosted mineralisation in anticlinal fold closures
adjacent to thrust faults.
The structural geometry of the deposit is controlled by a series
of west-northwest dipping thrust faults.
The faults in the Sunrise pit connect at depth to a large
reverse shear (the Sunrise Shear).
The thrust faults had a movement direction towards the
east-southeast on a vector plunging approximately 30" to
290".
The BIF units form a series of open anticlines and synclines
adjacent to the faults.
4th International Mining Geology Conference
Coolum. Old. 14 17 May 2000
MINE GEOLOGY PRACTICES AT THE SUNRISE OPEN PIT
AI1 three mineralisation styles are controlled by the thrust fault
framework.
Mineralisation was at the same time as reverse movement
along the faults.
The thrust faults acted as the major fluid pathways during
deformation and mineralisation and are all intensely altered.
Alteration mineral assemblages associated with gold are
broadly the same in all three mineralisation styles.
The pod mineralisation is related to brittle deformation in
competent volcanic units between shears. Vein orientations
within the pods are predominantly parallel to the shear
foliation, but high-grade veins also dip to the east and the
west at 50" - 60".
Pods are located above flatter portions of the top of the
Sunrise Shear surface.
The strike extent of pods appears to be controlled by lateral
ramps in the thrust system.
BIF-style mineralisation is related to fractures developed in
the BIF during folding, providing fluid access for
de-sulphidation reactions.
Mineralised veins caught up in progressive deformation and
alteration may dominate shear-hosted mineralisation.
Mineralisation is thicker in flats on the shears.
Interpretation methodology
The Sunrise resource drilling was based on a nominal grid of
2.5 m x 25 m of combined percussion and diamond drilling. Most
holes were drilled to the east at a declination of 60".
Geology interpretation
The cross-section geometry was interpreted using a combination
of examining the core photographs and examination of critical
sections of core. The main factors to examine in the core were
bedding orientations and verification of the presence of shear
zones. Bedding orientation was the critical factor in checking
correlation of sediment and BIF units. Where possible,
bedding-cleavage relationships were also determined. The initial
structural and lithological intercepts on section were plotted from
pit mapping data. These preliminary interpretations were not
constrained by the 3D connectivity, or by the latest phase of pit
mapping.
Following the completion of the preliminary interpretations,
concurrent pit mapping was used to provide additional
constraints on the interpretation, and all sections were examined
as a set to ensure there was 3D continuity of both structures and
geological units. A significant problem in the Sunrise deposit is
the low dip of units, which places a considerable sensitivity on
the section interpretation. This is because small variations in RL
of units on the section will produce significant changes in
horizontal location in bench plans produced from the sections.
The mining method employed at Sunrise does not leave clean,
undisturbed faces during mining that can be easily mapped.
Because of this, there is not a very good control on the geology
of the pit floor on any geological maps of the pit. An example of
a section of the geology is shown in Figure 3.
Correlation process
Digitised strings were completed for each section, and these were
used to generate horizontal slices for checking the continuity and
correlation of structures, and to check that structures did not
generate unrealistic intersections in level plans. At the end of this
stage, the model was sliced at 5 m intervals to ensure the faults
and shears formed continuous surfaces or merged realistically
with other structures. These alterations to the interpretation were
crosschecked against the original drilling data to ensure any
changes did not violate the primary data set.
-
79
I
E HAREN and 1’ WILIJAMS
w w Y w
E
Flci 3 - Polygonised geological section at 70 MK)N. Sunrise. generated using the processes outlined in the text
Once the shears and stratigraphic units were correlated through
the model, polygonisation was completed prior to commencing
the wireframing of the major components of the model.
Wireframes were completed for all the shears and faults, and the
BIF units. The final correlation of structures is shown in
Figure 4.
Relationship of mineralisation to the geometric model
The relationship between mineralisation and the geometric
model is determined by:
correlating the 311 structural features and grade or resource
i ntcrcepts;
linking that correlation to the results from the study of the
local movement history or kinematics; and
defining the internal structural geometry of ore zones
This approach leads to the identification of low strain zones,
and means the geometry o f the orehody can be used to predict
additional sites of likely gold accumulation.
Grade control data provides a valuable source to test the
structural model against ore distribution. The data down to
29.5 KL was gridded to produce level plans and sections through
the grade control data. A contoured version of this information is
shown i n Figure 5 .
The grade control sections demonstrate a very strong
correlation between the shear zones and faults mapped on
sections and the distribution of ore. The main zones of
mineralisation are both within and adjacent to the shear zones.
Large accumulations of ore occur between adjacent shears,
particularly where shears llattened and subsidiary faults
developed at the down-dip point of curvature on the shear (see
Figure 5 ) .
There is also a correlation of gold grade with BIF beds in
particular structural locations. The coincidence of HIF and a
shear zones is ;in ideal site for mineralisation; (the BIF provides
a good chemical ’trap’). whilst the shear zone provides the fluid
pathway as well as high strain conditions that fracture the H I E
ao Coolum. Q\d, 14
W
Several sections show how the resource drilling had straddled
some of the larger ore zones. which in general are ahout 2.5 m
wide. the same spacing as the original drilling pattcrn. These
cases highlight why the original resource model and the grade
control data do not reconcile.
The dip of shear zones plays a critical role in controlling ore
distribution in the deposit. There is a strong correlation between
higher grade and lower dip in the mineralised shears, indicating
that mineralisation was during reverse movement on the shears (a
zone of dilatancy and therefore increased fluid flow forms along
flatter parts of shears).
GRADE CONTROL AND MINING
A pie tray collects samples from blast holes by a sampler. The
blast holes are usually 5 m in depth with some subdrill in fresh
material. Two samples are taken from each hole. one at the 2 3 m
mark and one at the 5 m mark. No subdrill is sampled. Each hlast
hole collar is individually surveyed and geologically logged.
There are currently well over 100 logging codes which identify
combinations of the rock types identifiable including RIF.
porphyry volcanics, sediments and shears; the intensity of
alteration (I-weak to 3-strong) and presence of pyrite.
Previously the lack of detailed working models of the
structural geometry of the shears, HIF sequences and the general
fluid llow mechanics meant that grade control was carried out
‘by the numbers’. The geologists lacked the tools to he able to
fully interpret the grade control geology logging information and
how this was related to the assays being returned from the
samples. This was particularly relevant in oxide where the shears
were difficult to locate within the mineralisation envelope due to
masking by the supergene dispersion. Figure 6a represents nn
early oreblock plan produced without a geological model
influencing interpretation of mineralisation. This has resulted in
discontinuous oreblocks where over-selectivity has occurred.
- 17 May 2000 4th International Mining Geology Conlerence
 MINE GEOLOGY PRACTICES AT THE SUNRISE OPEN PIT

Fl(i 4 - Pattern of shears in the Sunrise Deposit. based on the sectional interpretation after correlation to level plms

The challcnge mine geologists faced was to integrate the
improved gcolopical and mineralogical models into the
undcrstanding of the small-scale (4 m x 5 m drilling grid)
structural and lithological trends. By interrogating the new
resource models, mineralisation could be related specifically to a
named shear zone or a pod, or observed to be part of a specific
named BIF. Figure6b shows an oreblock plan where the
orientation of mineralisation of the shears has been taken into
account and more continuity between high grades has been
allowed. The resource model provides confidence when dealing
with isolated gold assays in grade control data. Sporadic but high
grades found in only one or two samples away from main fluid
pathways arc probably extremely narrow veins. The probability
of economic extraction of these veins without excessive dilution
is vcrylow.

4th International Mining Geology Conference Coolurn, Old. 14 - 17 May 2000 81

 E IIAREN and P WILLIAMS

- - ..

Shear Zonts

R(i S - Contoured grade control at 0.5 g/t for section 70 OOO N. Sunrise.

FK;6 - Comparison of oreblock plans, note the more continuous orcblocks in R

82 Coolurn. Old. 1 4 . 17 May 2000 -. 41h International Mining Geology Conference


Mapping
As familiarity with the named lithological and structural features
that are relevant to mineralisation increased so did the quality of
pit wall and noor mapping. The objective of mapping expanded
from a predominantly geotechnical locus to include the mapping
of features directly related to geological and mineralisation
fcatures presented in the resource model. The geologists were
then able to visualise themselves in the 3D model while they
were pit mapping. When pit mapping, geologists compare the
resource model to both structures observed and marked
oreblocks. This has been crucial in increasing enthusiasm for
collection and processing of mapping data. The mapped
information is transferred in the office to base maps where
variations in expected orientations of structures, and new features
are investigated to understand their significance. If unexpected
ore occurs during grade control. or if ore which is expected docs
not appear, the mapping is directed to the area of concern. The
information is then transferred to hard copies of the sectional
interpretation to ascertain if the interpretation is correct. If
updating is required. the digitised sectional linework is modified
ready for the next round of resource modelling.
The most important aspect of the mapping is to determine
boundaries as accurately as possible. To achieve this requires
face mapping as well as flitch mapping. Additional structural
data from the face mapping is also important, and interpretation
of the presence of folded BIF and overturned BIF will rely on
face mapping. Using a digital camera has been extremely
important to check interpretations (Williams, 1999). Digital
photographs also 'preserve' the geology and are later
manipulated to produce panoramic images with geology marked
over the top.
The relationship between the model and bench mapping is
sufficiently reliable to use the model predictively between
benches, as the model is continuously updated by routine bench
and face mapping. This means that a routine of mapping plus
model upgrading can potentially replace detailed blast hole
logging to control modelling blast hole assay data and
determining mine block specific gravity. Currently blast hole
logging is still being carried out.
This methodology has significant potential for savings,
because the geological model remains current for future resource
modelling, the time involved in routine mapping/logging is
reduced. and the geological understanding of the deposit remains
current at all times. The methodology is summarised in Figure 7.
Achievements
The mapping procedure represents both an improvement in
efficiency of mining geology personnel, and has increased the
ability of the mine geologists to rapidly exploit any geological
variability in the deposit. In the longer term, when the deposit is
mined, a comprehensive geological archive for Sunrise, will be
available for future research. This archive will be fully digital
(Williams, 1999).
Mine geologists are now constantly thinking critically about
the deposit in terms of the resource model interpretation and how
it is related to what they see in drill core, chips, pit walls, pit
floors, grade control assays and drilling assays. There is a
heightened sense of ownership towards the resource model and
ensuring it is as accurate as possible.
The communication between development geologists and mine
geologists has also benefited as features which can be seen at
depth in drill core or chips, and perhaps difficult to understand in
a 3D sense, can be related to actual pit exposures. All geologists
are now speaking in the same terms according the model. This
will mean the interpretation of new drilling will be intimately
linked to the current geological understanding gained through
mining.
4th International Mining Geology Conference Coolum, Old. 14 - 17 May 2000
MINE GEOLOGY PRACTICES AT THE SUNRISE OPEN PIT
w
COMPLETEBENCHPLANS I Archive \
FKi 7 - Flowchart of mapping methodology for the Sunrise deposit
RESOURCE MODELLING
Previous resource estimates at Sunrise have included manual
polygonal estimates performed by Delta Gold in August 1992
and June 1993, and inverse distance squared estimates by PGS in
December 1993, July 1994 and June 1995. Indicator Kriging has
been used for the most recent models in June 1996, March 1998,
September 1998, November 1998 and June 1999. Over time the
resource models have been completed by both external Placer
personnel and site based pcrsonnel. The development of a
detailed geology model and an increase in site based skills has
meant the resource modelling processes and responsibility is now
site based with the mining geology department.
To create the geological block model for resource estimation
the sectional line work for both the geology and fluid flow
interpretations are digitised into separate layers. These layers arc
then converted to polygons with the intention of connecting each
of the separate BIF and shears into discrete triangulation. (Gotley
et al, 1998).
Shear triangulations
The Sunrise Shear and nine hanging wall shears are relatively
straightforward to model in 3D. The hanging wall shears vary
from having some thickness (usually less than IO m) to being
represented as fault planes. The Sunrise Shear is a major
structure up to 30 m across in places. with an average thickness
of approximately 20 m. The shear zones triangulations are
updated regularly as new drilling is completed.
BIF triangulations
The geometry of the BIF units is extremely complicated due to
the shearing and thrusting which has occurred and the large
amount of inferred movement along two of the major shears.
Owing to this complexity, individual triangulation of each of the
19 BIF units has not been completed. Initially, the polygons were
extruded halfway to the next section to create 3D solids. The
stratigraphy is however not orthogonal to the sections so there
was a stepped effect. This was not ideal therefore the stratigraphy
was separated into six BIF dominated or volcanic dominated
units that were more suitable for resource estimation. In this case
the boundary surfaces were either the shears with large
83
E IIAREN and P WILLIAMS
displacement. or the top or bottom of a RIF unit which was
suitable lor 31) modelling. This latest method has been continued
with all subsequent models until the present (January 2000).
Fluid flow model
The alteration study carried out in conjunction with the
geometric model development showed that the alteration halo
around individual veins was very narrow. Alteration haloes
around mineralised shears are wide;, .but still directly related to
the thickness of mineralisation. A 0.1 g/t grade cut-off was found
to be very close to the visible alteration halo (Ferguson et a / ,
1998). Because of these relationships, the grade data can be used
reliably to map the ellects of fluid-rock interaction, and it is this
envelope that has bcen used to define the effective pathways of
the mineralisinp fluid.
The fluid flow model was interpreted onto 29 sections that
were digitised then triangulated into a 31) solid. This solid was
used to constrain the high-grade mineralisation. A typical
example of the grade envelopes developed is shown in Figure 8.
The flow model assumes that the fluids moved from deeper in
the deposit upwards, and that the major feeder system is located
west of the Sunrise lease. This latter assumption needs to be
tested by deeper drilling at Sunrise, as there may be multiple
deep feeder zones to the Sunrise system. The models generated
(for example Figure 8) define the local flow directions, and point
to areas where additional pod or similar linkage structures may
occur.
Modelling
The geological block model was developed from the
interpretation. To obtain the necessary definition from the narrow
shears, this model was created with a small cell size of 5 m East
x S m North x I m Elevation, then reblocked to a larger block
size of S m x S m x 5 m for use in the resource estimate (Gotley
et a / , 1998).
w WI
El
0
El
0 O
0 0
a
e
UJ
W
e
QI
- -*99 -9w- . -
Flci 8 - Typical section of the fluid flow model outlines at 0. I g/t (fluid flow is hatched). Sunrise deposit.
a4 Coolurn. Old. 14 - 17 May 2000
Benefits from the new model
The new resource model has the benefits of:
closer estimation to actual spatial location of orc, which has
assisted in daily planning of drilling patterns;
separate domaining of discontinuous, high-grade, 'pod' style
mineralisation and continuous lower grade mineralisation
within the shear zones. Controlling the grade estim:ition is
made easier as the variography and the physically observed
ranges of these two styles are very different even though
mineralisation is considered to be contemporaneous,
occurring during and before the end of shearing (Ferguson et
al, 1998);
311 geological model that can be easily intcrrogatcd to
compare modelled geology with actual geology and predict
shearing intersections on pit floors and walls;
having the shears as 3D solids has meant a better
understanding of geotechnical issues that have occurred
previously, including a small oxide wall failure;
prediction of high-risk areas for wall failures and proactive
engineering of these areas in pit wall cutback designs to
minimise risk.
Reconciliation
The new resource models created using the geological
interpretation had an immediate effect on reconciliation. The
period from the start of mining to December 1996 (mainly
transported material), shows a 30 per cent underestimation in
ounces. This increased to 70 per cent underestimation from
January 1997 to December 1997 (mainly oxide), then up to 91
per cent for January 1998 to September 1998 (mainly fresh). The
results for the geological modelling were introduced into the
resource modelling from October 1998 and for this period up to
December 1999 the underestimation of ounces has dropped to 28
per cent. Figure 9 shows the progressive reconciliation by these
groups and graphically details the effect that a concerted effort in
improving the geological understanding has made.
WI w W
El
0 0El 0
El
0
9
0
m m m
0 D I
I
4 OO&
. .
4th International Mining Geology Conference

O/O Difference Between Grade Control and Resource Models - By Month
250
200 -,-
150 - 150
00
50
0 0
-50
FK;9 - Per cent difference between grade contrnl and resource models, January 1996 to December 1999. Sunrise deposit
When the geological modelling was initiated in March 1998.
the previous three months had returned gains in ounces of over
100 per cent (Dec 1997, Jan 1998 and Feb 1998 totalled over 30
000 ounces mined over the resourcc model prediction).
TARGET GENERATION
The geological and fluid flow models have provided reliable
tools to improve target generation for devcloprnent drilling. The
two major styles of mineralisation (orc pod and shear-hosted
mineralisation styles) are located at specific structural sites. The
best shear-hosted mineralisation is in flats in the shears, and
these can he determined from the modcl. Where drilling is
sparse, the presence of flats is only inferred from deviations from
average dip. The detail in the model then provides a mechanism
for determining drill spacing to locate the actual position of the
flats. Pod-style mineralisation is preferentially located close to
m a s where shears diverge. and commonly link lower shears to
the upper shear through a series of steep mineraliscd brittle
fractures. Subtle lateral features of the thrust system also control
the location of these pods. and zones of these lateral structures
arc also predictable from the gcological modcl. As a result of
application of the model, additional pod mineralisation was
discovcrcd at Sunrise, earlier than would otherwise have bccn the
case.
The relationship hetwecn structural features and mineralisation
has allowed direct interrogation of the model for areas that have
been under-explored, and this is particularly applicable to areas
where access to collar locations is difficult. The risk factors
associated with ignoring certain difficult areas can be assessed
against the structural setting of the area. The model thcreforc
provides ii method for prioritisation of development drilling, and
links the mine planning process to the requirement to provide
;iccess to certain critical development drilling areas.
4th International Mining Geology Conlerence Coolum. Old. 14
MINE GEOLOGY PRACTICFS AT THE SUNRISE OPEN PIT
~- -
250
--- ’ %Dif T
-
-‘%Difg/t* I 200
..
Oz
%Dif - .
.
Au
- -
A
100
50
-50
PIT OPTIMISATION
The engineering dcpartment, in collaboration with mine geology,
uses the resource model during design stages. On the resource
model, engineering run a varicty of pit optimisations, with
varying parameters including mining costs, gold price, haulage
rates, ctc. Comparison of the optimisation runs provides
excellent information about areas of high risk and high potential.
Geologists then combine with engineers to use the geological
and resource model to:
produce targets for drilling to increase reserves;
confirm any critical low confidence mineralisation which the
pit may ‘drive down on’; and
produce ‘dummy’ mincralisation to assess whether targeted
mineralisation will significantly affect pit optimisation.
This produces a ‘best case’ pit design where both the
confidence of interpretation and potential for upside arc
considered. The geologist is also given a firm understanding of
whether targets selected are critical for pit designs or whether
they can be considcrcd to be near mine exploration. This last
point can be very important in scheduling as pit development
may mean the loss of access to collar positions for drilling if not
timed correctly.
COST EFFECTIVENESS
There is a cost associated with the devclopmcnt of a
comprehensivc gcological modcl for a resource, and it is
important to ensure that the model returns a significant benefit to
the operation. The benefits from the various processcs described
in Figure I are outlined in Table 1. In this tablc an estimation of
an incrcasc in revenue or a reduced cost is presented. For
additional ounces recovcrcd. the operation will carry an
associated mining cost. so the figures represent the potential
- 17 May 2000 85
 E HAKEN and P WILLIAMS

TAR1.E 1
Cost benefits resulting from cipplica~ionof gcvlogical tnodelling.
.. . .~ .... - - ... . -... . .

‘Process
!--.
’ Cust($Us) . -. ~ Activity -. . . . Increased revenm5 ($US)
I
i 6 202 ow’
, Resource modelling Increased grade by -0.20 g/t of remaining resource which equals
! . 4430002~~ .. .. .......
I
I j G:*gjcaI m m g . ,
.~ 300 000 I Section analysis, maintenance -. , . _- .-0...
I Grade control and mining , Improved layout. better recovery high-grade ore in remaining i I 260 (X)O
I
I-.
I i reserve. Improved ounces by two per cent of 4.50 000 ounces =
...... 90()0 oz . .. . _.
I
~

! Target-gErqtion
’ Pit optimisation
I
,

i
~

I
...Increased
... drill spacing, reduction of 60 djllholes 0 IO0 m, $60/m
Increased grade by -0.20 9/t of remaining resource which equals I
... ~ 360 Ot$*:k
3 61 2 000
I
. . . . I-- .. 26 000 O % L . -. . - .... -_ -....
I Efficiency gains I Mapping, geotechnical, block-out procedures. one hour per day 18 OCK)
. .. for two geologists ... . . .

* Increase in resource is realised in pit optimisation

** Calculated from June 1998 to December 1999

actual saving. At an average production cost of $US 15O/oz and a REFERENCES

metal price of $US29O/oz, the revenue is estimated as
$US 140/oz.
Changes to the drilling scope to target specific areas and
prioritisation of drilling in relation to pit optimisation and design
requirements does provide a direct saving to the operation, as do
the efficiency gains provided through improved task definition
and scheduling. In the table, all the savings and revenue gains are
deliberately conservative. because there arc always a number o f
competing factors in claiming such savings. For example,
reduction in the requirement for cut-backs may carry a higher
drilling cost early in the opeiation, for savings realised later, and
finance costs have not been factored into this analysis.
CONCLUSIONS
A framework has therefore been created for keeping relevant
information at hand, using the resource model predictively for
grade control and keeping the geological and mineralisation
interpretations up do date with both the pit and floor mapping
and development drilling information. This also has implications
in terms of geotechnical considerations. The ultimate goal is to
have the resource model reflect accurately the expccted grade,
tonnes and, possibly most importantly, the spatial location of ore.
Pit designs, waste dump designs, scheduling for mining and
milling and grade control will all be improved with a solid basis
for forecasting ore production.
Ferguson. L. Williams. P K. Lally, J and McQuaig, T C, 1998. Sunrise
Geological Modelling. Placer (Granny Smith) report by SKK
Consulting.
Gotley. S. Haren, E, Ridge, K, Lai. J, Lewis, R W. Titley. M and
Pridmore, C. 1998. Sunrise Resource Report. Placer (Granny Smith)
internal report.
Lally. J, 1998. Fluid Flow Modelling and Target Generation. Sunrise
Lease. Placer (Granny Smith) report by SRK Consulting.
Newton, P G, Gibbs, D,Groves A. Jones. C M and Ryall. A W. 1998.
Sunrise-Cleo Gold Deposit. in Geolog:) of Aurtrdion cind Pripuci
New Guineun Minercil Depo.yir.r (Eds: D A Rerkman and D H
Mackenzie) pp 179-I86 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Newton. P G, 1997. Notes on the steuctural controls on gold
mineralisation at Sunrise, Laverton, Western Australia. Western
Australia. Placer (Granny Smith) internal report.
Ojala, J V. 1994. Structural and geochemical study of gold mineralisation
at the Sunrise Dam gold deposit, Laverton, Western Australia. Placer
(Granny Smith) internal report.
Ojala, J V, 199.5. Structural and Depositional Controls on Gold
Mineralisation at the Granny Smith Mine, Laverion. Western
Australia. PhD thesis, University of Western Australia.
Standing. J. 1993. The structural geology. structural controls o f
mi,neralisation and paragenisis of the Sunrise Dam gold deposit.
Laverton, Western Australia. Placer (Granny Smith) internal report
no. WA 18/93.
Williams. P R, 1999. Recommendations for Pit Mapping. Placer (Granny
Smith) report by SKK Consulting.

86 Coolurn. Qld, 14 - 17 May 2000 4th International Mining Geology Conference

The Spatial Distribution of Grade
J R Vearncombe' and S Vearncombe'
ABSTRACT
SpaDiSiLiis a revolutionary approach to the spatial analysis of point data
using geometry to analyse geometry! SpaDiSlh' uses each and every
spatial relationship and is not dependent on mathematical models. For ri
points there ;ire ri' - ri spatial relationships and, because of the square
function. the nicthod yields interpretable results for both small and large
data sets. SpaDiSTs' I S an alternative to variography for directional
studies At the regional scale, the analysis can assess distribution patterns
of mineralisation and potential controlling structures. At the deposit
scale. the characteristics of zones of mineralisation such as direction.
spacing. high-grade ore direction and grade distribution can all be
deduced.
INTRODUCTION
Point data on the spatial distribution of mineralisation can be
analysed hy a plot on which distance and direction from each
data point to each other data point are recorded by a point at that
distance and direction from the origin. Termed an
'all-object-separations' plot, these are commonly known as 'Fry
plots' and were developed for the analysis of strain and strain
partitioning in rocks (Hanna and Fry, 1979; Fry, 1979). Similar
methods have been applied to the analysis of inter-atomic
distances in crystals and the spatial auto-correlation of ore bodies
(Patterson. 1934. 1935; Perutz, 1942; Leymarie, 1968; de Paor
and Simpson, 1987; Lagarde er a / , 1990; Allison er al, 1997;
Vearncombe and Vearncombe, 1999). We have further developed
the analytical methods of Fry (1979) and apply these to the
spatial distribution of grade as recognised in drill assay data. The
method is an alternative to directional variography.
Spatial analysis can operate manually by placing a sheet of
tracing paper on which a series of parallel reference lines
(typically north pointing on a map) have been drawn, and the
location of each data point is recorded (Fry, 1979). On a second
sheet of tracing paper with a centre point (or origin), a set of
marked parallel lines are kept parallel to those on the first sheet.
The origin of the second sheet is placed on one of the data points
on the lirst sheet and the second sheet marked with all the
positions of points on the first. Then the origin of the second
sheet is placed on a different data point on the first, and the
positions again recorded on the second sheet. This is continued,
maintaining the same orientation, until all points on the first
sheet have been used as the origin on the second. For n data
points there are 11'-n translations. The resulting plot may be
further analysed by construction of a rose diagram recording join
frequency versus directional sector. Although the manual
technique provides totally satisfactory answers, the method is
tedious and cumbersome even for modest databases. For fast and
effective analysis the examples shown here have been analysed
using SpaDiS I M software.
Computerisation provides additional capabilities not readily
available to the manual user. These include the ability to handle
large data sets (which may result in hundreds of millions of
translations) and to analyse data within specified distance ranges.
Advanced analysis is achieved for data sets recording location
and a value (such as deposit endowment in regional studies or
grade in drill holes for deposit studies). The user defines success
within a selected numeric range. and only those points arc
analysed. For prospect- to mine-scale studies, the spatial
I. MAuslMM. Vearncombe and Associates Ply Ltd. 14A Barnctt
Street. Frcmantlc WA 6160.
4th International Mining Geology Conference Coolurn. Qld. 14 - 17 May 2000
distribution of a sampling (usually drilling) pattern can be
analysed, and successful sampling compared per radial sector
with all sampling on a percentage translations basis, helping
deduce the directions of ore shoots.
DRILLING DATA
The spatial distribution of mineralisation as recorded by the
location of successful drill holes is constrained by the
distribution of drilling. We illustrate this with prospect-scale RC
drilling results from Canyon. Based on a real example, these data
have been re-oriented and massaged to prevent identification at
the request of the owner. For this study, data are projected to the
surface (map plane) with the drill hole intersections and
mineralisation recorded as gold grade x thickness (g d t Au).
The purpose of the analysis here is to determine directions of ore
shoots. controlling structures, the repetition and spacing of these
ore shoots.
The map projection of drill intercepts shows the location of
drilling at Canyon (Figure I ) . Translations of all drilling and the
rose diagram show the decisions that have influenced drill hole
location including a knowledge of the trend of the regional
stratigraphy, a desire to drill on a systematic grid and problems
of access due to topography. Note the general east bias of the
drilling grid and the overall northwest bias in the drilling pattern
(Figure I).
For Canyon. drilling results are analysed for relationships
within 500 m of each other (distance range 0 to 500) and for
value ranges > I g d t , >3 g d t . 26 g d t , >I0 g d t , >25 g d t ,
and >SO g m/t (Figures 2 to 5 ) . Note that the analysis is robust
for economic grades of mineralisation. The results arc initially
presented as a translations plot. This plot shows all the spatial
relationships between drill holes fulfilling the value range. The
plot is thus a mix of influences between the (human) choice of
drill hole locations and the underlying geology. This spatial
distribution plot is summarised in the absolute rose diagram of
translations. To overcome bias in the sampling we use the
relative rose.
The relative rose diagrams show the percentage of drill holes
within the defined distance range which achieve the chosen value
range relative to the. total number of spatial relationships per
(10") radial sector. Thus we see through bias in the original
sampling pattern to record percentage success. The relative roses
are drawn here with an outer circle at 100 per cent and internal
circles at 20 per cent intervals. There are two types of relative
rose diagrams. The translations relative rose shows spatial
relationships as counted in the translations diagram. The
sampling rose calculates from the translations the non-linear
relationship of the number of drill holes within the value range
relative to the total number of drill holes per radial sector.
The results of the analysis at Canyon show that the d a p
develop a clear geometric anisotropy at >3 g d t . This geometric
anisotropy is evident from the first showing of the northeast
directional trend in the relative rose (Figure 3). The geometric
anisotropy may be considered as similar to. although
mathematically distinct from, the range in variography. At
>25 g m/t the translations plot is no longer dominated by the
original drilling pattern and clearly shows the underlying
geology, which at >50 g d t clearly shows ore shoots oriented to
the northeast with widths of 25 m and a spacing of about 100 m
(Figures 4 and S). Note that for >SO g d t spatial relationships in
the northeast sector achieve 26 per cent success and this
translates to SS per cent success in drilling along this alignment.
07
 1R VEAKNCOMBE and S VEARNCOMBE

Drilling results and spatial relationships

between drill holes

Tnmbtm
W w Range: No RANGE Bmplss -
Dstsnce knge: No RANGE 62/62/62

..
......
......
. _ . ...,
.:
.....
..,I.

, I-.' , :-. . : , ,

Flci I - Map of the drilling at Canyon showing the grade x thickness results for gold in drill intercepts projected to the surface. The translations plot shows
all the spatial relationships between the drill holes and these are summarised in the rose diagram. Note that the translations have a rotational symmetry
l
and occupy an area four times that of the original map. but preserve internal geometry and distance relationships.

DISCUSSION oriented along the assumed direction of maximum continuity.

Mapping at scales relevant to a geological problem, with an
emphasis on structural geology, is the best and most effective
method of understanding the directional controls on
mineralisation. Other methods, such as SpaDiSTM,are of most
use in conjunction and as a complement to mapping
- There are many data manipulation methods, including
contouring of assay results (or numerical derivatives such as
grade x thickness), and directional variography, by which data
can be evaluated. Contouring will remain a major tool in data
presentation, and provides a map as the final product, a feature
not available to directional variography or SpaDiSrManalysis.
However, contouring of small data sets is of little value, and
contouring data collected on a grid can be strongly biased by the
sampling pattern. Effective contouring of large data sets uses a
search window, usually an ellipse, based on a prior knowledge of
how the values are distributed and the geology, or is derived from
directional variography. The long axis of the search ellipse is
SpaDiSTM analysis is a new way to determine the direction(s) of
maximum continuity with distinct benefits in many
circumstances, including contouring.
SpaDiS'M analysis and variography both utilise pairs of data in
computation, but diverge due to the statistical approach and
algebraic models in variography versus a purely geometric
approach in SpaDiSIManalysis. In variography, a semivariogram
(commonly referred to as a variogram) is defined as half the
mean-squared difference of pairs of values at some defined
distance (Journel, 1986; Thomas and Snowden. 1990). The
variogram is of interest because it incorporates several geologic
features such as the continuity of mineralisation, zone of
influence (known as the range), and an ability to assess the
anisotropy of mineralisation with directional variation. The
mathematical representation of variograms calculated for
different directions are determined by fitting appropriate
theoretical models (Journel, 1980). or by indicator methods
(Journel and Isaaks, 1984; Dowd, 1992).

aa Coolum. Qld, 14 - 17 May 2000 4th lnlemalional Mining Geology Conference

 THE SPATIAL DI! I<IHUTION OF GRADE

All results within 5OOm

................
.. .. . , 1"

. .
. _..

....
:
.
. . . ;..,.,,.
.... .,
t
2
..
:
..
:.-.!.:""':'.'.
...
TlMllta"
VIluebnpc'o- 1 m Sampler -
A
700 ..... ..,'..... . . .. [knanc.R.nps:0.500 61/61/62

Results within 5OOm and > lg.m/t

_ . '. . . . . v
. .: .......:...,. . . . 86 ?A

....... ........L ..

Ftc; 2 - Results of spatial analysis of drilling for all holes within 500 in of each other for all value ranges (top) and for > I g i d t hottom). Original data are
shown in Figure I . Thc translations plot shows the distribution oldrill holes achieving the value range critena (all data top at d > I g idt bottom). The
i s is summarised in the
:number of drill holes
:rms of the number of drill
the defined distance range

value r:ingc relative to the total number of drill holes per radial sector.

4th International Mining Geology Conference Coolum, Old. 14 - 1 7 May 2000 a9

 J K VEARNCOMUE and S VEAKNCOMBE

Results within 500m and > 3 ~ . m / t

................. U
. . . . ...........
......
...... ..,..-, :-....
. .. ...>:. .......,.......
..........
........... ,.;> .... * . . . . . . .
.
. :. . '.:..::,,,..-. +.-.a,..: .,. .
:
I
. . . .."'.,'. .+\:v#-%,:,;;f'....... 1'. .
I

........... .-*.. ..,........ ,t..........

.. .:. .*::.. ..:- .-.W***p. .........
~ ! . ? . ~ . ~ ~ L. '..... ~r~ .: ~ ~... .
.. . ..... y/..*&.-~..~.I,:.. :, . . . .
........
'.' '; ..;. ,c.q. .*.-e
.'J..-..C . ;.*s.v
.......
Y.'-..l,c.
.....: . . .
,
c
'
..
........:. ..... ..~:-~,~~.~~~.~;.:--. ..: . :.. ..
.... . 1... .f..4*&*.**-i:...'..
.
..... ..............
. . ,-.A<,:&
. .-. , .¶. . :

.............
/

...... .
. .- ..- -'c ,.--.,,*..:..:.. .....
. . . ....,-'.,.lr;:6...:... ... . . . . .
,a;.
:-d.~~%-.$;
I
,
. ....I, ...... e.
.os
..:
.: .........
.: . . . . . . Absdute
Translation
-
8 r.,
............ :.. . " V a I w Range 3 1000
200 .. , .............. Distance Range 0 - 500
~
Sanples
. . . . 43/61/62

M
2%
7%
4r

Translation
Value Range: 3 1000 -
Distance Range: 0 - 500
-'- Sampks I Value Range: 3 - 1000 .~ -
Samdes
~

43/61/62 Dmtance Ramp: 0 - 500 43/61/62

Resu€ts
. . . within
. 500m and > 6 g . d t
.: . . :. .. .
. ............ ... ... .. . . . .
...........
. .'...'.., ., -\.. .....
..... ..: ..:.. . . . . . . .
.. . .. . 1.:."+. .:,, . . .....
---
i \
. . .... ,..*...-.. .
, . . A . :.
* . -.9 y
. * *.. :.. . ..* . . . . .
%

.......... -.:. "-...2 .-...i...> .;. . . . . . .

... .........
.-I.;
. . . . . >.-;:.
I
..'
;..
:?:,.:A*.
.t?-.';.'k':.L'.... :.. .., .
v
-
.......,.. .. -...
.... .i;..-.
. c.. .
*..-r: .. :- ?:-- .....
*..:-e.

.... .:., . ....

A,-.

......... 6 *i..$ .....

.e, .:,.'
: . . , .o
i
c
.......... ..+..-.;> ..-.,* 2.. ;........
. . . .. . .*:..:':..-:;>..:.!.. ,"'..... . .
. . . . . .'-..:"*.a .,*,.:..'.... :: ... ' .
.
a
.
Absolute
. . . . . . . ..:.. , .....-..,.. ....
-
c;
. . . . . . .,.. > .:...... Translation

. . ' . . :.' .. .. . .
I.... -
1 ' . ... ........... Vaiue Range: 6 lo00
M i n c e R a w : 0 - 500
Sam+

200 ... .. .. . . . 34/61/62

V a l w Range: 6 - 1000
Datance Range: 0 500
Smpbs - Vaiue Range: 6 - 1000 snples -
~
34/61/62 Distance bnge: 0 - 500 34/61/62

H(i3 - Similar to Figure 2, results of spatial analysis of drilling for drill holes within 500 m of each other for all value ranges (top) >3 g m/t and for
>h g m/t (bottom).

90 Coolurn, Qld, 14 - 17 May 2000 4th Internalional Mining Geology Conference

 THE SPATIAL DISTRIHUTION OF GRADE

Results
. . . . .within
.... 500m and > IOg.m/t
.. ........ ...... .... . .. . ........
....... ..: ..,. ......... A i. . .
. .. . ...... .. ......*.....,.... . . . ... .. . .
. . _. . .......!.'. . ...... ... . .. ..I \

. . . .. .. ...... :.....,... . :.< .,,. .+ .:.. . . .

.. .. .. . .. :.. :.;.-;,:<.-.:.::.-<., b . .. .. .. .. .. ...
. ....
: .:.., .... .".< . 'L* ,:
-.I. .-. ...-. .
~

.-.
e.".
.
.. ,-. . . . . . -
-
s

. . . .
. . .. ........... :,..:., .... .
: . c

......
. . .
~ .Irr
~
..
. . . *..:.....::..
.....
......
.. 4

.
4. ..r'w.;:
. . . .... . .......
.a:.
.--::..:.: :.........
...8 .e.:'.

. . . . .. . . .. . . ......... ' ........

I.. '7

. . . ............ ..
$
,...I.. ....... Absdute
p .... . .. . .. . .. . .... ..... .. Translation

200 *
. . .\
. . , .....
... Value Range: 10 1000
Distance bnge: 0 500
~

Samples
30/61/62
-
. . . .
~

- 500
Samples - Value Range 10 lo00 - Samples -
Distance Range 0 30/61/62 Chtance Range: 0 500 - 30/61/62

Results. .within
.. 5OOm and > 25g.dt
. . .. . :
'.
.... . : ' . .:
I20
' 32
'10
17

I
' 5.2
Abrdute
I '' , \ ',)O
Translam
Value Range: 2 5 lo00
Distance Range 0 500
-
~
2 2 30
Sam*
21/61/62
-
3340?40pa

@
3096

Relatwo 2 7%

Tnnslatwn

-
119610% Samplinp 363592j"
Value Range 25 1000
~

Gwk. Value Range 25 1000 - Sampks

Orlance Range 0. 500 21/61/62 Distance Raws 0 - 5 0 0 2 1/61 162

FK;4 - Siinilar to Figure 2. results of spatial analysis of drilling for drill holes within SO0 rn of each other for all WIUKranges (top) > I O g m/t and for
>25 g m/t (bottom).

4th International Mining Geology Conference Coolurn. Qld. 14 - 17 May 2000 91

J R VEARNCOMRE and S VEARNCOMRE

Results. within 500m and > 5Og.dt

. . .. 1.

.. . ...
.. . \ 116
..
..
0,.

. . .
.i. \

. . . .. . *
.. . . ,.r: .. . .... c

.~ ..
. . ,-.-. .... .
e .

...
..
. .....
0

.. .
.

.... .. 1
V'..-10
\ LN

.. . .. . Absolute . / J ! t d
14 l * '
z-. . I
Translation
Value Range: 50 - 1000
1 2 12
Sam* -
200 . Distance Range 0 SO0 - 16/61/62

Tmnslatlon
Value Range: 50 - 1000
-
Distance Range: 0 500
6% 4%
Samples -
16/61 / 6 2
-
Value Range: 50 1000
Distance Range. 0 - 500
Samples -
t 6/6 1 /62

FIG5 - Similar to Figure 2, results of spatial analysis of drilling for drill holes within SO0 m of each other for all value ranges >SO g d t .

Directional variography (Rendu, 1984) is commonly used to
determine the continuity of directions of mineralisation in mines
and advanced prospects. A published example is the Kundana
mine (west of Kalgoorlie, Western Australia) where Hadlow et af
(1993) compare critically results of directional variography with
deposit structure. Variograms were calculated in search windows
of IO" in all sectors in the plane of the orebody using several
different mathematical models, hut only a limited number of
resulting variograms were robust. The robust variogram
directions were found to correspond closely to some of the
structures deduced from geological mapping and fabric studies.
However, multi-dimensional variography requires pairs of data at
multiple spacings in all sectors. It is effective only on largc to
very large data sets, and even then gaps in the data can result in
erroneous results. In contrast to multi-dimensional variography,
SpaDiS'rM uses each and every spatial relationship and is not
dependent on mathematical models. SpaDiSTM can produce
interpretable results with modest data sets (I4or more samples),
but typically the larger a sample of quality data the more reliable
the end result. With very large data sets (thousands to tens of
thousands of samples) we have found that the millions lo
hundreds of millions of translations restrict the sensitivity, and it
is best to subdomain the data into sample sizes in the hundreds.
CONCLUSIONS
Regional applications of SpaDiSTM analysis include assessing
deposits and old workings to deduce structural directions
controlling mineralisation and to verify aeromagnetic
interpretations. The assessment can he according to deposit size,
to deduce variations in structural directions controlling
mineralisation according to deposit endowment. Mine- and
prospect-scale applications are used to determine the distribution
of successful drill holes relative to all drilling. This reduces the
spatial bias inherent in the distribution of drilling to determine
ore shoot directions. Grade control data can be examined t o
deduce directions of continuity of mineralisation within open
pits.
ACKNOWLEDGEMENTS
One of us (JV) was a research student at the University of Wales
when Norman Fry developed some of the practicd mcthods
described here. Applications at that time were to rock
deformation. Fifteen years later it became clear that the method
was applicable to directional studies and an effective alternative
to directional variography. Spatial analysis is performed using
SpaDiSTM for Windows and Power Macintosh, which are
developed under contract to Vearncombe and Associates Ply Ltd.
SpaDiS is an internationally registered trademark.
REFERENCES
Allison, 1. de Paor, D G. Haszeldine. S , Bowman. A and Maguire. M.
1997. Cryptic structural trends in basement revealed by Patterson
diagrams: examples from the Scottish and Irish Caledonian orogen,
in. Evolu/ion of Geologicul S/rucfure.s in Micro- f o Mucro-scules
(Ed: S Sengupta),pp 487-495 (Chapman and Hall: London)
De Paor, D and Simpson, C. 1987. Rf/Fry version 2.0.5 (Sqfrwure)
Ins/ruc/ion Munuul. Earth'nWare Inc. Boston. not paginated.
Dowd. P A, 1992. A review of recent developments in geostatistics,
Crimputers and Geosciences, 17:148 I - 1500.

92 Coolum, Qld. 14 - 17 May 2000 41h lnternalional Mining Geology Conference


Fry. h'. 1970. Random point distributions and strain measurement in
rocks. ~ ~ ~ ' / ~ ~ ~ l f J / 60:89-
~ / l ~ . 10.5.
~ l ~ ' . ~ ,
Hadlow. H K. Khosrowshahi. S and Vearncomk. J R. 1993 The use of
directional vnriography and structural geology to determine controls
on gold mineralisation in the South Lode. Kundana Mines.
Coolgardie Goldfield. Ausrrulicm lnsrrrure ( ~ Geosc~ienrisrs
f Bulleripi.
14:31-38
Ilanna. S S and Fry. N. 1979. A comparison of methods of strain
determination in rocks from southw,est Dyfed (Pernbrokeshire) and
adjacent areas, Journul ofSrrucrurd Geology. I : 15.5- 162.
Journel. A G. 1980. The log normal approach to predicting local
distributions of selective mining unit grades. MufhetticcficulGeology.
I2:28.5-303.
Journel. A G, 19x6. Geostatistics: models and tools for the earth
sciences. Mtrrlremrfrctrl Geology. 18: I 19-140.
Journel. A G and Isaaks. E H. 1984. Conditional indicator simulation:
application to 3 Saskatchewan Uranium deposit. Murhe~nurrcd
Gvdo,yx. 16.68.5-719.
Lagarde, J L. Omar. S A and Roddaz. H. 19cH).Structural characteristics
of granitic plutons emplaced during weak regional deformation:
examples from late Cretaceous plutons. Morocco, loitniul of
S/ruc./urtrl Geologx. I2:805-821.
4th International Mining Geology Conference Coolum. Qld. 14 - 17 May 2000
THE SPATIAL DISTRIBUTION OF GRADE
Leymarie. P, 1968. Une mCthode permettant de mettre en evidence le
caractere ordonne de la distibution des gites mineraux, Muierulium
fk/JtJ.YifU. 3334.343.
Patterson, A L, 1934. A Fourier series method for the determination of
the component of intra-atomic distances in crystals. Physics Reviews.
46~372-376.
Patterson. A L. 1935. A direct method for the determination of the
components of inter-atomic distances in crystals. Zipr /ur
KristcJlloRrtrphre. 9 0 5 17-5.54.
Perutz. M F. 1942. X-ray analysis of Haemoglobin. Nrtrure. 149:491-494.
Rendu. J M. 1984. Interactive graphics for semivariogram modeling.
Mining Engineering. 36: 1332- 1340.
Thomas. M and Snowden. V, 1990. Improving reconciliation and grade
control by statistical and geostatistical analysis. Ausrnrlitm lnsrirure
cJfC;eosc.ienris/s Bullerin. 10:49-59.
Vearncomhe, J and Vemcomlx, S. 1999. The spatial distributon of
minerali7~tion: applications of Fry analysis, Economic G'eolqy.
94:475-486.
93
94 Coolum. Qld. 14 - 17 May 2000 4th International Mining Geology Conference
The Bunyip Lateritic Nickel-Cobalt Deposit, Cawse Nickel-Cobalt
Operations, Kalgoorlie, Western Australia
A Bywater' and S M Denn2
INTRODUCTION
The Cawse nickel-cobalt operation is situated SO km NW of
Kalgoorlie in Western Australia, at latitude 30" 22'30" south and
longitude I2 1 08'30" east on the Kalgoorlie 1:250 000
geological map sheet (SH SI-9) (see Figure I ) . The project is
owned and operated by Centaur Nickel Pty Ltd (CTR) and was
the first in Australia to commercially produce nickel metal and
cobalt sulphide through pressure acid leach (PAL) technology.
Cawse has a total resource base (all categories of resources +
reserves) of 213 million tonnes Mt at 0.7 per cent Ni and
0.04 per cent Co, comprising 127 Mt at Cawse Central which is
100 per cent owned by CTR and 86 Mt at Cawsc Extended
where CTR has a 80 per cent equity. Cawse Extended is located
immediately to the northwest of the Cawse Central leases. All
current reserves (proved and probable) of 30 Mt at 1.0 per cent
nickel are contained within Cawse Central. In addition the
Siberia project area 20 kilometrcs to the NW has a resource of
63 Mt at 0.7 per cent Ni.
Cawse is a dry lateritc deposit, with nickel and cobalt hosted
by iron and manganese oxides. Cawse Central mineralisation
extends over a ten kilometre strike length, with three pits
currently being mined. The Bunyip pit has the premier nickel and
cobalt grades within Cawse Central.
There arc seven dominant lithology types forming mappable
units within current pit exposures. Four of these units are host to
nickel and cobalt mineralisation. Ore types are defined as
Upgrade. Grind and Non-upgrade, depending on their physical
characteristics with respect to the treatment route.
Mining commenced in February 1998. To the end of calender
1999 the operation has produced 2100 tonnes nickel plate and
470 tonnes of cobalt as a cobalt sulphide product. Future
production will target 9000 tonnes per annum Ni metal and up to
2000 tonnes per annum Co, based on processing 5 0 0 000 tonnes
of ore pcr annum.
EXPLORATION HISTORY
In 189.5, a prospector named Cawse discovered gold in quartz
veins from granite outcrop in an area now called Bunyip. In the
late- 1970s. Western Mining Corporation (now WMC Resources)
outlined a laterite resource of approximately 30 Mt grading 1.3
per cent Ni and 0.08 per cent Co at Siberia, approximately 20 km
NW of Cawse and hosted within the same geological unit as the
Cawse deposit (Loftus-Hills, 1975). Small pits were developed in
this area from 1978 - 1980. supplying feed and silica flux to the
Kalgoorlie nickel smelter (Marston, 1984). Newcrest Mining
mined gold from a small open pit adjacent to historic gold
workings in the late-1980s. In 1992, Centaur Mining and
Exploration Ltd applied for a group of prospecting licences to
explore for gold in palaeochannels, as mined at its Lady
Bountiful Extended Operations since 1988. Drilling commenced
at Cawse i n March I993 with assays returning significant Ni
values. Analysis for nickel, cobalt and copper returned a best
I. Senior Geologist. Cawse Nickel Operations, Centaur Mining and
Exploration, PMH 32. Kalgoorlie WA 6433.
2. MAuslMM, Chief Geologist. Cawse Nickel Operations. Centaur
Mining :ind Explor:ltion. PMH 32, Kalgoorlie WA 6433
4th International Mining Geology Conference Coolurn. Qld. 14 - 17 May 2000
intercept of 8 m at 2.2 per cent Ni from an area now called Orc
pit some 2.5 km north of the current Runyip pit. The recognition
of laterite potential led to further drilling in the area during
1994 - 1995, resulting in definition of a resource of SO Mt at 1.0
per cent Ni. A fast-tracked project incorporated infill drilling and
metallurgical testwork, culminating in a successful bankable
feasibility study in 1997.
REGIONAL GEOLOGY
Cawse is situated within the Ora Banda - Mt Pleasant area of the
Eastern Goldfields district in the Yilgarn Block. The geology is
dominated by an Archaean greenstone sequence folded around
intrusive granitoids. Nickel mineralisation is exclusively
developed on ultramafic and differentiated mafic sequences
within the greenstone sequence. The Cawse deposit is formed
above an olivine adcumulate-textured dunite on the eastern edge
of the Walter Williams Formation (WWF), part of the Linger and
Die Group within the Ora Banda domain (Brand et al. 1996.
Figure 1). Regional greenstone stratigraphy is similar to that of
the Kambalda and Kalgoorlie areas as shown in Table I , the
stratigraphic column for the Siberia-Ora Banda area. The
greenstone belt defines the Goongarrie-Mt Pleasant anticlinal
structure around the Goongarrie granitoids, which intrude the
base of the greenstone sequence. At Cawse the basal basaltic
sequence, the Pole Group, is absent, attributed to the intrusion of
the Goongarrie Granitoid.
Nickel-cobalt mineralisation is confined principally to the
ultramafic rocks of the WWF, bounded by the Goongarrie
Granite to the east, and the Siberia Komatiite to the west.
Localised nickel ore grades have also been reported from the
Siberia Komatiite and peridotites from the differentiated mafic
Ora Randa Sill.
The WWF is up to 300 m thick, comprising coarse-grained
olivine adcumulate and orthocumulates. Thin orthocumulates
occur at the base and top of the formation. The ultramafic has
undergone serpentinisation in the Cawse area. The Siberia
Komatiite overlies the WWF and is separated from the upper
orthocumulate by a zone of pyroxene, gabbro and Mg-rich
leucogabbro (Witt and Harrison, 1989). I t is characteriscd by thin
spinifex-textured komatiite flow units. Overlying the Siberia
Komatiite arc high-Mg basalts intercalated with tholeiitic basalts.
The sequence is completed by a succession of epiclastic
sedimentary rocks (Witt and Swager, 1989). Intrusive layered
mafic-ultramafic sills, termed the Ora Randa and Mt Pleasant
Sills occur above the Siberia Komatiite.
The earliest deformation recognised in the Cawst. area is the
regional D2 structure called the Goongarric - Mt Pleasant
anticline. The granite - greenstone contact in the Cawsc region is
offset by north-trending strike faults and is displaced by
north-east-trending regional (D3)strike-slip fault with a small
dcxtral component. Drilling has indicated that zones of nickel
enrichment in the regolith at Cawse are, in part, controlled by
primary structures trending ENE-WSW; these D3 structures are
subperpendicular to the regional strike. The regional drainage
pattern is also subparallel to these structures.
Thc sequence has undergone low to middle grade greenschist
metamorphism. with local upper grcenschlst to lower
amphibolite grade facies associated with a high strain
deformation aureole close to the granite margins (Witt. 1993).
95
A BYWATEK aiiii S DENN

3000QOrnE 3500pOmE
!--\ p /
I-
I1 .. -.
I
~
' \
! 1

2
E z

z6
C
C
.r
U r.
U

z z
E E
0

z
0
0
0
0
ln
10
(0 I(D
0

z z
E E
3
3

2
3
s
0
D
D Lo
W

300000rnE 350000rnE

= Walter Williams Formation Outline X Ni Resource

~~~

Centaur Nickel Pty Limited

~

A C N 079 092 194

Greenstone 0 Town
Road CAWSE NICKEL PROJECT
Ultramafic

- _ , Granite
- Rail REGIONAL GEOLOGY AND
LOCATION PLAN

FIGI - Cawsc nickcl project rcgional geology and location plan

Coolurn. Qld. 14 - 17 May 2000 4th International Mining Geology Conference

 THE HUNYIP LATERITIC NICKEL-COBALTDEPOSIT

‘rA6I.E 1
Strutcigruphic colionr:fiir the Siberia-Ora Bunda area.
. .~ . . .

I G.rF!P- .. i
. Fnrmation -.--p&kness Descriplinn ..
!
.
~

I
. ~. . .~ Granitoid? . . ..
Finem coarse p i n e granodiorites and nionzogranites. ’

I Kurrawang Formation ! > 2 W m Quartz rich silts, sandstones and conglomerates.

~ ,\ / \ ’ /

!
, Black Flag Group Hl9ck Flag Group (undifferentiated) ., 2OqO-m Epiclastic felsic to intermediatevdcaniclastics.
.. -.
. Orinda
.- Sill . 250 m . , Gabbro. -
. .~ . Pipeline Andesite Member-. 1 - 200 ni -- Fragmental intermediate v+Ficlastic rock.
Grants Patch Group Ora &nda Sill* - . ~ 2000 m -. Layered mafic-ultramafic sill, peridotite to granophyre.
1 -
Victorious
... Basalt I 1 0 0m Massive !?-pillowed coarse p i n e d plagioclase-phyricbasalt.
Bent Tree Basalt . .I 2o(w m . .Massive
. to pillowed. fine grained, basalt. . .

... ~t t’leasant sill - I 6%) m r)ifferentiated mafic SI!~.includes iron rich granophyric unit. :

Differcnti?ted mafic.sill.
I . . Mt Ellis Sill .-+!E-: . .
! Linger and Die Group BigDick Basal! Variolitic textured massive topillowed high Mg basal. I

I
I

1
Siberia Kcrnatiite* r 23.F.m ;-1 Olivine sp-i-njfxtextured flay?. .
. .

, Pole Group !
Walter Willj?ms Form?!ion*
-- Missouri &salt ~
200111
1000m I
.- Coarse cumulate tex!ured dunite ioperidotite.
Tholeiitic basalt. .. .
.

! . I. Wongi Hasalt- , >2OOOm . ... High Mg basalt. .. .

Adapted from Witt 1994

* Contains ore grade nickel ore intersections

LOCAL GEOLOGY
Nickel-rich laterite has formed as a residual product from ‘I’ARLE2
chemical weathering of olivine-rich cumulate rocks. The Cawse Olivine compatible and incompatible elements in the Walter
deposit is an oxide type laterite nickel deposit. Nickel is hosted William Formation.
by iron and manganese oxides. Silicate minerals of the lower ... ... . . .
saprolite ore type host small portions of the orebody near the
hase of weathering. The interaction of structural and regolith
I Mean olivine-compatible : Mean olivine-incompatible ~

:
1 . ---
elements - elements -
features form significant control on the definition of high-grade
nickel and cnhalt ore deposits. Mineralisation is hosted within
I
. -. 42.35 w! ’%I .MgO
.- .- 0.23wt % AI203 ....
the residual portion of the latcrito profile, although small zones . . 36.60wt~Si02 I . -
0.02 wt ‘Yo Ti01 .. !
of enrichment occur at the base of transported material (Brand et .- 8.33 wt ’%I Fez03 8 ppm Cu
01, 1996).
100PPm co <..‘.F!Prnzr. ..
Serpentinised olivine cumulates of the WWF form the
protolith to the Cawsc deposit. Most of the saprolite and bedrock
820 ppm Mn I . .I ppb PI
i
are derived from an adcumulate dunite. The unit strikes . .~ 9ppbIr .! . __ I ppb Pd
north-west to the south of Cawse Central, then north-north-west I I

. .QW- . - 3 ppb R h .-.. .

at Cawse Central and north-north-west at Cawse Extended. A
olivine orthocumulate has been identified from limited bedrock . .- 7P p b K ... . ..

data at both lower and upper margins of the adcumulate. All

ultramafic lithologies have undergone a degree of
serpentinisation, with primary labric still preserved except in
fault zones. MINE GEOLOGY
The irregular eastern margin of the WWF abuts the granite at a The mine geology can be divided into seven individual units on
faulted contact with associated shearing and talc carbonate
the basis of lithology, mineralisation and position in the regolith
alteration. The ultramafic is composed dominantly of forsterite
profile (Figures 2. 3, 4 and S). Boundaries represent stratigraphic
that has been serpcntiniscd to antigorite and lizardite with minor
horizons and the accumulation of minerals due to a specific
magnetite. chromite, magnesite, dolomite, talc, chlorite and
redox environment. These units are described below in detail.
silica.
The nickel abundance o f the serpentinite in the WWF varies
from around 0. I9 per cent Ni for orthocumulate to 0.24 per cent Lateritic duricrust
Ni for adcumulate (Hill et a / , 1987). with local values up to 0.35 A veneer of lateritic duricrust averaging 2 m in thickness is the
per cent Ni. upper most horizon of the region. I t is dark brown-red and
The protolith is enriched in olivine-compatible elements and composed of iron-rich pisoliths and nodules (commonly
depleted in olivine-incompatible elements as detailed in Table 2. magnetic in the first metre) set in a loam matrix with occasional
No economic concentrations of nickel sulphide mineralisation fragments of silica and rounded quartz grains. These siliceous
have been identified to-date from the WWF i n three decades of fragments commonly show dissolution fabrics and may be
nickel exploration in the region with at best trace quantities of rimmed with secondary iron oxides. Pedogenic carbonates are
primary nickel sulphides in the form of pentlandite. present in the top metre. decreasing with depth. In drill core. soil

4th International Mining Geology Conference Coolum. Qld. 14 - 17 May 2000 97

 ~~~~

A RYWATEK and S DENN

Regolith Unit Ore Type Down Hole Element %, Bunyip Central

0 2 4 0 10 20 0 20 40
Surface (426mRL)
0 8

1
8
8
8
8
Lateritic-Duricrus 8

WASTE
ZONE
Upper ALLWIAL
ZONE 10

Lower ALLWIAL
ZONE

GRIND
ORE
(Mn
20
BLanlret)

I
i
8
8

30 ,j 8
I
I
I
1
UPGRD.
ORE

bo

LOWER
SAPROLITE
Cr
50
SAPROCK WASTE
ZONE

Fici 2 - Regolith and mineralisation profile, Bunyip Pit.

98 Coolum. Qld. 14 . 17 May 2000 41h International Mining Geology Conference

 THE BUNYIP LATERITIC NICKEL-COBALT DEPOSIT

FIG3 - Bunyip geological plan. 30 ni below surface. FIG4 - Bunyip plan nickel and cobalt grade contours. 30 rn below
surface.

l e rmml IO I w n i

4th International Mining Geology Conference Coolurn. Qld. 14 - 17 May 2000 99

A BYWATER and S DKNN
displays a gradational boundary to weakly mottled clays.
Magnesium and calcium values are often elevated (-0.6 per cent
and one per cent) in the duricrust because of calcretc formation
near surface.
Alluvial
Alluvial cover is widespread throughout the Cawse region as
represented by palaeochannels. and it is divided into an Upper
and Lower zone. One channel defines the axis of Runyip pit,
varying in width from 20 m in the south to 200 m in the north.
The channel trends 005" with localised meandering. The
palaeochannel is situated in part adjacent to major structural
lineaments which have focussed weathering and fluid movement
in the Bunyip Pit area.
The Upper Alluvial Zone has undergone strong mottle
development that differentiates i t from the Lower Alluvial Zone.
Mottles are composed of bleached, green and red-brown
kaolinitic clays and round iron rich pisoliths. This zone extends
from a few metres below surface to a depth of 20 m, and deeper
adjacent to structures. Pisoliths range in size from 0.1 - 3 cm
diameter, with maghemite also common in transported material.
The Lower Alluvial Zone is more variable in composition and
can be difficult to distinguish where no coarse fraction is present.
The base of transported sediments may comprise conglomerate.
sands and silts, or undifferentiated clays. Bedding has been
observed in some of the basal units, in which flat lying sandstone
and conglomerate units measure up to I m in thickness. Channel
till is poorly sorted subrounded to angular pebbles and cobbles.
Large ovoid silcrete pods are also present measuring 10 lo 40 m
in length and up to 20 m in width. The silcrete is a very
fine-grained matrix of silica containing irregular shaped clasts of
coarser silica and rock fragments measuring 1 mm - 200 mm.
This zone is highly porous.
Manganese Zone
A subhorizontal blanket of cobalt-nickel-manganese enrichment
is situated 10 - 20 m beneath the surface. The manganese zone is
hosted within the lower alluvial profile and the underlying Upper
Saprolite horizon. The blanket dips parallel to the boundaries of
the palaeochannels developed over the north trending fault zone.
Manganese minerals adhere preferentially to siliceous material as
coatings and infilling in small cavities. Chalcedonic quartz rich
zones contain numerous voids 1 mm - 2 m in size.
The Manganese Zone occurs at a redox front associated with
high fluid porosity at the alluvial- upper saprolite contact. The
manganese is present as manganic oxides and hydrates including
pyrolusite, baumite, nirnessitc, jacobsite, groutite, todorokite,
chalcophanite and cryptomelane, identified by XKD analysis.
These minerals are associated with cobalt and nickel grades from
0.3 per cent to 5.0 per cent. Nickel concentrations are generally
two times higher than cobalt. Nickel and cobalt appear to be
absorbed by the manganese oxides rather than undergoing ionic
substitution.
Upper Saprolite Zone (Limonite Zone)
This goethite rich unit is located between the manganese blanket
and Lower Saprolite, measuring up to 40 m in thickness. The unit
is variable in composition in terms of iron, kaolin and silica. It is
eharaeterised by a strong brown-mustard colour, low density and
high-porosity. Secondary iron oxides (goethite and haematite)
result in red, brown and yellow colour development. Textures are
vuggy due to fabric collapse caused by mineral breakdown and
remobilisation. The resulting enhanced fluid permeability has
facilitated the deepening of the redox boundary. The boundary
between the Lower and Upper Saprolite is marked by a sharp
colour change from light brown to yellow brown. Goethite, clay,
100 Coolurn. Qld, 14 - 17 May 2000
secondary quartz. minor magnetite and iron - rnagnesium
silicates arc the principal minerals. The clay miner;ilogy of this
zone includes kaolinite. montmorillonite. nontronite. magnesite
and talc. Structurally controlled talc alteration is found within
and adjacent to limonite zones. These units host variable nickel
mineralisation. Chalcedonic quartz is distributed throughout the
Upper Saprolite Zone, appearing as iron stained masses
measuring I mm - 5 m in size. The amount of quartz is highly
variable, measuring between ten to 90 per cent of the rock mass.
Where secondary chalcedonic quartz development appears
greater than 50 per cent of the rock mass. the locol term 'massive
silica' is used to describe the rock.
Massive Silica Lithotype
Massive silica is distributed throughout the uppcr saprolite
profile at Bunyip pit, reflecting intense weathering of the primary
ultramafic. This secondary alteration is iron stained with Ni
values of -0.4 per cent. The massive silica zone in south Hunyip
measures 300 m in strike, 40 - 100 m in width, and occurs
variably from IS m - 40 m below surface. The silica contains
voids 0 . 5 mm to 2 m in size, and may include small clasts of
laterised ultramafic material. I t often retains primary adcumulate
textures, as represented by interstitial iron staining around
individual olivine crystals. This silica is a product o f the
pervasive Weathering of the primary ultramafic host. Silica
flooding occurs throughout regolith units, including the
Manganese blanket and Upper to Lower Saprolite.
Lower Saprolite Zone
The Lower Saprolite Zone is situated at the base of the
weathering profile at the transition between the Upper Saprolite
and Saprock Zone. The unit is defined as partially weathered
ultramafic with altered serpentine and visible relict igneous
textures. The unit comprises limonite stained nontronitic clays
and is host to minor nickel mineralisation. The unit is commonly
sheared and jointed, resulting in a blocky fabric. It is typically
developed below 40 m depth, with an average thickncss of 10 m.
The preserved adcumulate fabric becomes progressively
destroyed upwards through the unit. Carbonate veinlets. rimmed
with magnetite and maghemite, are still present in the Lower
Saprolite where as magnetite alters to goethite in the upper
saprolite. Silicification of saprolite with adcumulate fabrics are
preserved throughout the Saprolite zone and associated with
minor coatings of manganese oxide. The upper boundary of the
Lower Saprolite is marked by a thin accumulation ol' soft green,
bleached iron-magnesium silicates.
Saprock Zone
The Saprock Zone is defined as primary ultramafic with less than
than 20 per cent of its volume affected by weathering. The
material has undergone scrpentinisation but retains primary
adcumulate textures. The lower boundary of the Saprock zone is
marked by oxidation of joint filling thick subhorizontal
magnesite veins 0.5 - 4 cm in thickness. Mineralogy comprises
antigorite, magnesite, magnetite and minor chromite. The
serpentine exhibits a mesh texture and locally a crackle breccia
texture with internal, minor finely disseminated magnetite grains
(Brand el al, 1996). Antigorite has pervasively replaced olivine
crystals, with iron staining occurring along the edges of original
grain boundaries. Dolomite and magnesite veinlets occur locally
in the adcumulate forming veinlets, with some dolomite in the
serpentinite mesh cores. Parts of the Saprock contain tremolite,
chlorite and antigorite as the dominant minerals, suggesting a
source rock composition of peridotite. Gabbro units comprise
I
I
plagioclase and amphibole, with minor clinopyroxene and
sphene. Primary sulphides identified (trace only) are fine-grained
chalcopyrite, pentlandite and pyrite.
41h International Mining Geology Conference

W
Fic; 6 - Bunyip cross-section nickel and cobalt gradc contours. 18 OOO mN.
MINERALISATION AND CLASSIFICATION OF
ORE TYPES
Ore with grades greater than 0.6 per cent Ni and 0.1 per cent Co
is situated above or adjacent to the Upper and Lower Saprolite
Zones. This reflects the significance of weathering acting as thc
dominant control for all mineralisation. No ore has been
identified within thc Saprock or Upper alluvial zone.
Three ore types are defined in the Bunyip deposit: 'Grind'.
'Upgrade' and 'Non-Upgrade' (Figure 2). Grind ore is classified
as material that will not undergo grade bcneficiation through an
upgrade circuit and hence requires further grinding to allow ,,
further processing. This ore type includes most high-grade cobalt
mineralisation associated with the manganese zone. Upgradt: ore
comprises limonite ore derived from the upper saprolite that is
processed through the upgrade circuit. This material may also
include a small proportion of lower saprolite (weakly smectitic
clays). Upgrading is possible via screening out coarse low-grade
material, usually comprising silica. Non-upgrade material is
defined as nickel bearing material not amenable to processing
through the upgrade circuit. This is due to the nontronite content,
and results in high-grade nickel ore 'balling' and being passed as
reject material.
Grind ore: silica-cobalt mineralisation
Grind ore is defined as matcrial requiring fine grinding to extract
nickel and cobalt, and is locally termed siliceous cobalt
mineralisation (SICO). This material cannot be processed
through the bcneliciation circuit due to the association of
massive chalcedonic silica and manganese, nickel and cobalt
mineralisation. This ore type is hosted within the manganese
blanket. Siliceous cobalt mineralisation represents ten per cent of
the measured resource and is the primary source of high-grade
cobalt feed for the Cawse plant. This ore is enriched in nickel,
cobalt and manganese, commonly reaching grades between 0.3
to four per cent Ni, 0.1 to I .S per cent Co, and two to ten per cent
Mn (Figures 4 and 5 ) . This ore is characterised by manganese
staining of silica and clays, and is readily identifiable in the field,
ranging from dark black to steel grey-blue in colour. The zone is
typically situated 1.5 m below surface, is 20 - 120 m in width,
averages 6 m in thickness and trends north-south intermittently
above the limonite ore zones. The eastern side of the SIC0
4th International Mining Geology Conference Coolurn, Qld, 14 -
THE BUNYIP LATERITIC NICKEL-COBALT DEPOSIT
El
appears to be defined by a zone of barren chalcedonic quartz and
a talc shear, which appears to have acted as a barrier below and
east of thc main lode. The cobalt blanket dips westward and
pinches out with depth, into limonite ore. The SIC0 zone
appears displaced downwards in some areas by -5 m, which may
be due to slumping of the underlying residual material.
Upgrade ore: goethitic nickel mineralisation
Limonite mineralisation comprises approximately 80 per cent of
the global resource. Limonitic clays with variable proportions of
vuggy, geothitic silica typically contain grades of 0.4 per cent to
1.6 per cent Ni. Limonite ore comprises predominantly goethite
with minor hematite within a matrix of silica. The ore appears
bright orange in colour, and is friable in hand specimen. This
zone is situated immediately below the Grind ore in the Upper
Saprolite Zone, and transgresses into the top of the Lower
Saprolite. The dominant ore zone extends over a 1.2 km strike
length, measuring 30 - 120 m in width, up to 40 m in thickness,
with typical ore grade intercepts of 30 m @ 1.3 per cent Ni and
0.07 per cent Co. The limonite ore comprises clays with variable
silica content and minor magnesite and nontronite. Thin
subparallel talc shears transect the unit and are variably
mineralised.
The main ore zone is bounded towards the east by a massive
silica pod, which is related to a low angle footwall shear dipping
towards the west. Mineralisation is bounded to the west by
Lower Saprolite material and bedrock. The ore zone pinches out
with depth into lower saprolite and bedrock material.
Goethite-hematite is the dominant nickel host. Numerous
nickel silicate minerals have been identified, including
brindleyite, dwornikite, nepoutite, nimite and tetrataenitc. These
are usually of lesser importance as nickel host minerals than
geothite.
Nickel is strongly enriched in upgrade ore, with concentrations
reaching four to five times those in the protore, and is associated
with cobalt in the upper part of the horizon. Nickel grade
decreases as the proportion of silica increases. Cobalt content is
between 0.01 to 0.1 per cent but can reach 0.3 per cent where
manganese staining occurs. Talc mineralisation within limonite
ore comprises approximately five per cent of the resource and is
located toward the base of the weathering profile, proximal to
penetrating shear structurcs. The talc zones in thc residual
17 May 2000 101
A RYWATER and S DENN
regolith have elevated nickel grades (>2 per cent) along ul)pcr
and lower margins. Minor hangingwall and footwall talc shears
are similarly enriched, but are thinner and show a more restricted
dispersion of nickel.
Variable amounts of silica are distributed throughout the
limonite ore as clasts ranging from 1 mm - 2 m in diameter. This
material contains Ni values between 0.4 to 0.8 per cent. The
presence of silica distributed throughout the matrix facilitates
upgrading of the ore.
Non-upgrade ore
This ore type commonly occurs adjacent to weakly weathered
saprock on the western side of the deposit. The ore strikes NNW
in a zone I O - 20 m in width, with typical grades of 0.8 to 1.4 per
cent Ni and 0.04 per cent Co. Mineralogy comprises iron and
nickel-rich smectite clays, termed locally as nontronites. It is
characterised by a blocky nature and green colour, due to the
abundance of these smectite clays. Various degrees of weathering
in this unit influence the degree of upgradability which is
dependant on silica and magnesium content. This ore marks the
transition zone between less weathered Lower Saprolite with
strongly weathered Upper Saprolite Zone. It is characterised by
elevated Mg values >4 per cent. This ore type is not a significant
part of the Runyip resource, however it is similar to that found at
Bulong (Elias et al, 1981). Just as Ni2+ substitutes for Fe2+ in the
limonite zone, i t has a similar capacity for cation exchange with
Mg 2+ in the saprolite.
ORE GENESIS
An interpretation of the geomorphology at the time of orebody
formation is essential in clarifying ore genesis. Central to this
interpretation is a palaeochannel, which has bcen recognised at
all deposits within the Cawse Central area. The presence of
sedimentary sands and conglomerates suggests that the
paleographic setting of the orcbody was a valley around a
high-energy alluvial system. This alluvial system developcd over
a locally significant north-south trending fault. Smaller creeks
are interpreted to have fed the larger system from the east over
the Massive Silica unit. To the north of Bunyip Dam. a wide. 20
metre thick massive mottled clay deposit signifies the opening of
the system northwards into a larger low energy river or lake. The
saprolite situated west of the alluvial system and main fault
represents the remainder of what was probably a hill or scarp that
has subsequently been eroded down to the current surface level.
The surface of the massive silica. eroded by the smaller creeks
and displaying much deeper weathering. is interpreted as
representing the pre-weathering surface.
Laterite formation occurs in warm climates associated with
large influxes of water and is associated with intense weathering,
The unweathered ultramafic unit with background levels of
0.25 per cent Ni and 0.02 per cent Co, is the primary metal
source for Cawse mineralisation. During weathering,
magnesium, iron and nickel are dissolved from the primary rock.
Minerals with high cation exchange capacities, such as
secondary serpentine, smectite clays and iron-manganese oxides
(Lawrance, 1996) preferentially absorb nickel released from
weathering of primary minerals.
Cobalt is commonly found in the clay minerals and associated
with trace amounts of manganese. Cobalt combines selectively
with Mn3+ and Mn4+ (Hotz, 1964) in manganese minerals due to
adsorption. Serpentine breaks-down during weathering to form
iron oxides (in saprolite) and silica. Silicic acid formed at the
redox front as a decomposition product, reacting with
magnesium rich rocks to form magnesium ions and silica.
However if aluminium is present nontronitic clays will tend to
form (Lawrance. 1999).
102 Coolurn. Old. 14
All economic mineralisation at Runyip occurs above or
adjacent to the Lower Saprolite-Saprock contact. ' m e major
north-south trending shear has acted as a secondary control on
mineralisation. This shear defines the boundary between massive
silica to the east and iron-rich Lower Saprolite to the west. It is
overlain by a major palaeochannel following along the pit axis.
This has influenced downward permeation of fluids and ore
accumulation at redox boundaries, resulting in nickel and cobalt
mineralisation. Interfaces between lithological units. geological
structures and redox boundaries control ore deposition and
grades. Leaching, re-distribution and accumulation may still be
occurring in the regolith profile today because of current aridity.
Structural controls on mineralisation
Numerous structural features have been identified at Runyip
which influence ore deposition. Variable weathering of different
rock types has resulted in a complex alteration pattern. The
dominant mineralisation control in Bunyip is a north-south
striking major fault dipping 40" towards the west (Figure 4). This
shear marks the eastern-most limit of high-grade nickel
mineralisation, at the boundary between a mineralised
hangingwall and a barren silicified footwall. This zone contains
the highest grade nickel and deepest known ore extent in the
Cawse region.
A zone on the eastern pit edge has been identified striking at
120" with a dip of 80" towards the NNE, over a 25 ni wide area
(Figure 3). This area comprises numerous parallel faults that
disrupt and control the SICO ore zone in some areas. Some
blocks of SICO appear incorporated into the fault zone. The
underlying silica zone is also faulted, with clay infill often
defining fault planes.
A major talc shear exists in the eastern wall, striking 120" with
a subvertical dip. The zone measures 60 m in width with a 200 m
strike extent and is variably mineralised. A fault occurs on the
western limit of the mineralised Upper Saprolite Zone. The fault
strikes at approximately 320" - 340" with a dip of 85" east.
Nontronite is commonly situated adjacent to this fault.
MINING
Mineral resource and ore reserve estimates
T h e Cawse Central mineral resource estimate is based o n 1545
reverse circulation and 34 diamond core holes for a combined
84 830 m of drilling. In addition a total of 14 large diameter
holes for 360 m advance were drilled for metallurgical sampling
(Denn, 1998). Most holes were vertical and sampled over 2 m
intervals. Elements were analysed utilising multi-acid digest with
grade determinations by atomic absorption spectrometry (AAS).
Density measurements were compiled from PQ diamond core
and downhole wire-line gamma-gamma density logging. Cross-
section interpretations were wire-framed to produce a three-
dimensional model of geology and ore grades. Ore grades were
domained at 0.5 per cent Ni and 0.3 per cent Co. Detailed
variography has been undertaken on sample grades within the
0.Sper cent nickel wireframc, and formed the basis for multiple
indicator kriging estimates. A block model was generated
incorporating ore type, multi-element grades and density values.
Block size was 10 m in the local grid easting direction, 20 m in
the northing direction and 2 m in height. Grade estimation was
generated utilising multiple indicator kriging methods.
The total resource including measured. indicated and inferred
for Cawse and Cawse Extended is 213 million tomes (Mt) at
0.7 per cent Ni, and 0.04 per cent Co using a 0.5 per cent Ni
cutoff (Table 3). This includes 30 Mt at 1 .O per cent Ni and 0.06
per cent Co in the proved and probable reserve category. Bunyip
pit contains proven reserves of 5.1 Mt at a grade of 1 . 1 per cent
Ni and 0.13 per cent Co at a waste to ore strip ratio of 2 3 : I .
- 17 May 2000 4th International Mining Geology Conference

Grade control
Grade control drilling is undertaken on a staggered IO m x 5 m
drill pattern utilising face sampling reverse circulation hammer
drilling to 20 m depth. This pattern is varied according to ore
continuity and strike. Drill samples arc composited for assaying
over 2 m intervals, with each 1 m sample logged for geology
contacts, lithology and ore type. Samples arc analysed for nickel,
cobalt, manganese, magnesium, aluminium, iron, chromium,
copper and zinc, using a multi-acid digest and determination by
inductively-coupled plasma spectroscopy. Each sample is split at
the laboratory, with one split submitted for head grade analysis,
and the other submitted lor upgrade testwork, involving a
simulated ore bcnefication process in the laboratory. Material is
processed through a 0.5 mm scrccn, which rejects coarse
low-grade material. Upgradibility of the ore is back-calculated
from material which docs not pass through the screening process.
These figures are utilised to predict leach feed tonnes and ore
grade post-beneficiation. Procedures arc currently being
developed to utilise leach feed grades (post-benefication) to
outline ore zones.
Ore zones are initially defined by lithology and classed as
Grind, Upgrade or Non-Upgrade feed. These ore types are then
divided on the basis of nickel and cobalt grades into mill feed
(>I .0 per cent Ni, >0.7 per cent Co), medium-grade stocks (0.8
to I .O pcr cent Ni, 0.3 to 0.7 per cent Co), low-grade stocks (0.6
to 0.8 per cent Ni, 0. I to 0.3 per cent Co) and mineralised waste
(0.4 to 0.6 per cent Ni, 0.05 to 0.1 per cent Co), resulting in 12
stockpile destinations.
Ore spotting is effective in -30 per cent of ore contacts, as
related to clear visual distinctions between grind and upgrade
ore, and high-grade to low-grade contacts. Spotters are in
4th International Mining Geology Conference
Coolum, Qld. 14 17 May 2000
THE BUNYIP LATERITIC NICKEL-COBALT DEPOSIT
constant communication with the excavator operator during
removal of ore. Dilution of ore is estimated for each ore block,
based on area; perimeter ratios and blasting parameters. Blast
vector indicators are placed in each area requiring blasting, on a
20 m x 20 m grid to record pre- and post-blast position of ore.
Ore block mark up of these blocks is then adjusted accordingly.
The direction of mining aims to initially remove hanging wall
mineralisation (Bunyip south) with working faces running
north-south to minimise dilution.
Mining methods
Conventional open pit contract mining methods for ore
extraction. The fleet currently includes one Hitachi EX2500 250
tonne excavator and 4 x Caterpillar 785B 150 tonne capacity
dump trucks. Bench heights are 2 m. with six metre benches for
blasting as required. The possibility exists to increase bench
heights below the Manganese Zone to 3 m. Current planned pits
are designed to a depth of 40 to 56 m. Approximately 70 per cent
of the area involves free-dig material with the remainder
requiring drill and blast.
Mining is currently focussed on the highest-grade portions of
the deposit, however the 20 year plan will incorporate the four
existing pits into one pit up to five kilometres in length and 850
m in width. Numerous ore zones are available and active at any
one time to allow in pit blending scenarios of ore t y p and
grades. Pre-stripping involves removal of 5 - 15 m of transported
overburden that is usually free dig. Open pit design parameters
include a 65" face angle bench from surface to 20 metres depth,
with S m berms, reducing to a 55" face angle bench from 40 m
depth. The overall wall angles arc 53" with 20 m wide haul roads
with a 1 :9 grade incline.
-
103
A HYWATEK and S DENN
Ore is sourced from four open pits over a 6 km strike length
and trucked to a central ROM pad. Ore is stockpiled on the basis
of ore type and thcn grade range. Non-upgrade ore is currently
stockpiled separately because of elevated magnesium values,
which results i n higher acid consumption. High-grade upgrade
ore is blended on individual stockpiles up to 60000 t in size,
utilising chevron stacking and re-claiming.
As of February 2000, 4. I MI of ore at 1 .O per cent Ni and 0.2
per cent Co has been mined from three open pits. This includes
I .2 Mt of high-grade ore at I .4per cent Ni and 0.4 per cent Co.
ACKNOWLEDGEMENTS
The authors would like to acknowledge the assistance of Centaur
Nickel Operations in allowing the publication of this paper.
Many professional contributions have been made towards
Understanding the Bunyip deposit, particularly Calvin Ferguson,
Toby Morris and David Hope. We acknowledge discussions held
with other personnel who have greatly added to the
understanding of the geology of the Cawse nickel deposit. The
efforts of Ken Hellsten and Neil Phillips in reviewing this paper
has greatly improved its quality and is much appreciated. The
authors also acknowledge the editorial assistance in finahsing
some aspects of this paper.
REFERENCES
Brand, N W, Butt. C R M and Hellsten, K J. 1996. Structural and
lithological controls in the formation of the Cawse nickel laterite
deposits. Western Australia - Implications for Supergene on:
formation and exploration in deeply weathered terrains, in
Proceedings Nitkrl '96. pp 189- 190 (The Australasian Institute of
Mining and Metallurgy: Mclhourne).
Denn, S M. 1998. Large diameter drilling at Cawse Nickel Project - An
innovative solution to metallurgical sampling, A/G Bullelin.
2 2 5 1-66,
104 Coolurn. Old,
Mas. M. Donaldson. M J and Giorgetta. N, 1981. Gcology mineralogy
and chemistry of laterite nickel-cobalt deposits near Kalgoorlie.
WeStCrn Australia. f?fJllOI?liC GCfdrJgy.76: 1775-1783.
Hellstcn, K J . Lewis. C R and Denn, S. l99X. Cawse nickel-cobalt
deposit. i n Geo/rJXyofAu.rlrdiun (ifid /'upuu New GUOIE(I!I M/wrtrl
DepfJsi1.r.pp 335-338 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Hill, R E T. B:unes. S J, Cole. M J and Dowling. S E, 1090 Physical
Volcanology of Komatities, Excursion Guide Hook No I
Hntz. P E. 1964. Nickeliferous laterites in southwestern Oregon and
northwest California. Economic G e o l o i y . 59(3).
Lmwrance. L M. 1996. Geochemical rcsponses within lateritic profiles
over barren and mineralised ultramafic rocks: implications for nickel
exploration in the Yilgam block. Westem Australia. in Proceedings
Nickel 'Y6, (Eds: E J Grimsey and I Neuss) pp 167-171 (The
Australasian Institute of Mining and Metallurgy: Melbourne).
Lawrence, L M. 1999. Geochemistry of nickel in the regolith. In course
notes 'Nickel laterites' Centre for Teaching and Research in Strategic
Mineral Ikpusits. The University of WA (Unpublished).
Loftus-Hills. G D, 1975. Ora Handa lateritic nickel deposits, WA. in
Econoiirrc Geology o f Ausfruliu und Pupi(i Nrw Guineu. (Ed: C L
Knight) I . Metals. pp 1010-101I (The Australasian Institute of
Mining and Metallurgy: Melbourne).
Marston. R J , 1984. Nickel mineralisation in Western Australia.
Grological Survey of Western Australia. Minerd Resourwr Buflefin.
14. 272 p.
Wi1t.W and Harrison. N, 1989. Volcanic rocks and bounding shear 7ones
of the Ora Handa greenstone sequence, in The 1989 K u l ~ o o r l i e
Workshops. (Ed: M Glacken) pp 2-7 (The Australasian Institute of
Mining and Metallurgy. and Eastern Goldfields Discussion Group:
Kalgoorlie).
Witt. W K and Swager, C P, 1989. Structural setting and geochemistry of
Archean I-Type granites in the Baxdoc-Coolgardie area of the
Norseman-Wiluna belt, Western Australia. /'rec.rinibritrrl R e s e t i n k
441323-35I .
Witt. W K, 1993a. Gold Deposits of the Mount Pleasant Ora Handa
areas, Western Australia-Pan 2 of a systematic study o f the gold
mines of Menzies-Kambalda region, Western Australia Geological
Survey, Kecord 19921 14.
14 - 17 May 2000 4th International Mining Geology C o n f e r e n c e
Cadia Hill Gold Mine - One Year Down the Track
C F Moorhead' and Cadia Geology Team2
ABSTRACT
The C:idia Hill Gold Mine. located near Orange i n Central Western New
South Wdes. is owned and operated by Cadia lloldings Pty Ltd. a wholly
owned subsidiary of Newcrest Mining Liinited. Construction including
pre-stnp mining occurred from I996 to 1998. The iiiine was officially
opened in October 1998 following coiiiiiiissioning of the concentrator
and mine tlect i n June of that year
The Catlia Hill orebody is a porphyry related gold and copper system
The final pit has :I strip ratio of approximately I 3-1.0. Mining is
uiidcnnkcn on I S iiietre benches using large capacity diesel hydraulic
face shovels ;it an annualised rate of up to 70 Mtpa. The concentrator is
currently rated ;it l7Mtpii and includes the world's largcsi single line
grinding circuit The feasibility Mineral Resource was estimated at
3 Y MI at 0.63 g/t A u and 0 17 per cent Cu. Initial reserves totalled
200 MI at 0.74 g/t Au and 0.17 per cent Cu yielding a mine life of
approximately I2 years.
During the pre-production period mine geology systenis were
developed to suppon the operation. Hy design these systems were
intended to add value to the business through inininiisation of niatenal
iiiiss-classification. provision o f iiccurate and tiinely production
inforination and mapping and reconciliation iis a continuous model
iinprovciiient tool
I. MAuslMM. Geology Manager. Cadia Hill Gold Mine. Newcrest
Mining Limited - Cadia Hill Gold Mine. via Post Office South
Orange NSW 2800.
2. Cntlia Geology Team. Members of the Mine Geology Team - past
and present. Newcrest Mining Liiiiited - Cadia Hill Gold Mine. via
Post Office South Orange NSW 2800.
FIGI - Location diagram.
4th International Mining Geology Conference Coolurn. Qld, 14 - 17 May 2000
Variances that would prove to be material to the life of mine plan were
recogniscd during the first year of production These included
identification of additional ore tonnes. higher copper grades and higher
gold recovenex relative to the model. Gold grades and copper recoveries
also reconciled favourahly. Testwork was undenaken to determine the
underlying causes of each variance. Re-modelling was then undertaken to
capitalise on those variances.
The Catlia Hill Gold Mine life of mine plan was re-evaluated with
updated geology, grade. geotechnical. metallurgical and environmental
inputs. Operating strategies were also reviewed and revised. Despite
application of reduced nictal prices in the evaluation. the outconie was
one of extended niine life with more metal produced at lower cost.
Development of robust mine geology systems. including a pro-active
reconciliation process contributed to tangible improvenient of the Cadia
Hill Gold Mine operation. On-going system development and
improvement initiatives are planned to add further value for the future.
INTRODUCTION
Location and ownership
The Cadia Hill Gold Mine is located in the Central Tablelands of
New South Wales, Australia. approximately 20 km south of
Orange at Latitude 33"28'S and longitude 149"O'E. Cadia Hill
Gold Mine is owned and operated by Cadia Holdings Pty Lid
which is a wholly owned subsidiary of the Australian gold
mining company Newcrest Mining Limited (Newcrest)
(Figure I ) .
105
C F MOORHEAD and CADlA GEOLOGY TEAM
Geology and operations
The Cadia deposits (Cadia Hill, Ridgeway, Cadia East. Cadia Far
East, Cadia Quarry. Big Cadia and Little Cadia) all occur within
a 6 km long northwest trending corridor within the Molong
Volcanic Belt of the Lachlan Fold Belt of eastern Australia. The
Late Ordovician porphyry-related mineralisation is spatially
related to a small composite stock (Cadia Intrusive Complex) of
predominantly monzonite composition. The stock intruded
Ordovician Forest Reefs Volcanics and Weemalla Formation
sediments.
At Cadia Hill, mineralisation consists of a southwesterly
dipping tabular zone of sheeted veins with chalcopyrite and
bornite predominantly hosted in the orthoclase porphyritic phase
of the Cadia Monzonite. The veins cross the lithological contact
into the roof pendant Forest Reef Volcanics to the east without a
significant change in character.
Post-Silurian reverse faulting has significantly dissected the
ore zone with major 'thrusts' on the western pit limit associated
with the Cadiangullong Fault which represents the northern limit
of the regional Wongalong Fault; and the Gibh Fault juxtaposing
Cadia Hill mineralisation against the Cadia East deposit in the
east.
Detailed descriptions of the geology of Cadia Hill and the
adjacent deposits have been published previously by various
workers (Wood and Holliday, 1995; Newcrest Mining Staff,
1995; Holliday er a / . 1998; and Newcrest Mining Staff. 1998)
(Figure 2).
The feasibility life of mine plan at Cadia Hill was based on
starting reserves of 200 MI at 0.74 glt Au and 0.17 per cent Cu.
With an average waste to ore stripping ratio in the order of
1.3: 1.0. open pit mining was planned to be at rates up to 60 Mtpa
to feed the world's largest single line grinding circuit at 17 Mtpa.
106 Coolum. Old.
Flotation copper concentrate would be pumped to a filter plant at
nearby Rlayney prior to transport to customer smelters in Japan
via rail to port. Annual production would be approxim;itely
300 000 ounces of gold and 20 OOO tonnes of copper over a [nine
life of - I 2 years (Figure 3).
Open pit mining occurs on a continuous shift basis. Fifteen
metre benches are blasted and mined in a single pass using large
diesel hydraulic face shovels loading 230 t dump trucks. The
majority of the ore is direct dumped into a large gyratory crusher
on a just in time basis. This crusher feeds a coarse ore stockpile
(COS). This stockpile is - 2 0 kt in size with a live capacity of
-50 kt (one day). The SAG mill draws from three feeders located
below the COS at a rate in exccss of 2000 dry tonnes per hour.
In its first full year of production Cadia Hill produced 253 670
ounces of gold at a total cost of production (NAGIS) of $409/0~.
The total cash cost was $257 per ounce (Newcrest Mining
Limited Annual Report. 1999). In addition a significant
underground resource has been discovered and identified nearby
at Ridgeway. Definition of potential additions to the surface and
underground resource inventory is ongoing. Results to-date have
given strong encouragement that reserves will increase.
Feasibility resource model
The Cadia Hill Gold Mine feasibility study was based on a
resource estimate completed by the Cadia Drillout Geology
Team in 1996 (Cadia Drillout Staff, 1996). The development of
the geology model and resource estimation process was further
documented in 1998 for presentation at the Towards 2000
Seminar held at Cohar (Moorhead el nl, 1998). The quoted
Mineral Resource at the commencement of the project was
352 Mt at 0.63 g/t Au and 0.17 per cent Cu (Newcrest Mining
Annual Report. 1997).
14 - 17 May 2000 4th International Mining Geology Conference

Cadia Hill Gold Mines
600000 ...... ..................................................................
~
500,000
A
v)
Q) 400,000
- Gold Production (Sch 5 1 )
Copper Producbon (Sch 5 1 )
0
C
300.000
Y
U
5 200.000
(3
100.000
0
PP 1 2 3 4
FIG3 - C a d H~ i l l fea\ibility life of mine metal production chan
This model consisted of a three-dimensional block model
(Datamine), based on digitised gold equivalent grade zones and
lithological/structural domains interpreted on well supported
50 m cross-sections and plans. Data consisted of 1 m half HQ3
diamond core samples composited to 15 m on a bench basis.
Grade was interpolated using the inverse distance squared
approach with search ellipses and top-cuts determined
statistically for each domain. Variography showed gold and
copper mineralisation at Cadia Hill to be non-problematic with
. respect to grade interpolation. Experimental variograms were
well structured with low relative nugget values and an absence of
short scale structures. Parent block sizes were set at 25 by 12.5
by 15 m with some subeelling allowed at domain boundaries.
Model fields included Au. Cu, CuCN, S , Lithology, and AuEq.
This model was further regularised to a 25 by 25 hy 15 rn SMU
size for optirnisation purposes.
In each regularised cell a calculated ‘profit’ field was
generated. This spatially variable field was a function of revenue
and processing cost. each of which was able to be derived from
the primary model fields. Profit was subsequently used as the
basis for material classification in mine planning and operations.
A waste model was created for the non-ore volume within the
model prototype. Within this model fields were generated for
MPA (maximum potential acidity) and ANC (acid neutralising
capacity). The MPA to ANC ratio was then used to classify the
waste in terms of potential to generate acid mine drainage.
MINE GEOLOGY SYSTEMS
Ore control
Data acquisition
The primary means of grade control sampling at Cadia Hill is a
multiple spear blast-hole method. This approach was selected on
the basis of sample quality and efficiency following
heterogeneity studies and sampling testwork. The testwork
included a trial of several blast-hole sampling methods including
pie segment, spear, multiple spear and a simple scoop. The
remainder of the cuttings for each hole in the trial (-1.6 t), was
4th International Mining Geology Conference
Metal Production
5 6
Year
. -
Coolum. Old, 14 - 17 May2000
C A D I A HILL GOLD MINE - ONE YEAK DOWN T H E T R A C K
. - . _-
1 60*ooo
7 8 9 1 0 1 1 1 2 1 3
- ..
carefully picked up using a small loader and passed through a
rotary splitter and submitted under controlled conditions to the
laboratory. Results were used to benchmark each of the methods.
All testwork indicated that sampling at Cadia Hill does not
represent a significant problem. This result, although atypical for
gold mineralisation was not unexpected given the disseminated
style of mineralisation.
Labour required to perform blast hole sampling is provided on
a seven days per week basis by the contract assay laboratory.
This innovative approach has proven to be very efficient and
effective. Samples dispatched by midday are generally available
by mid-morning the following day. Samples are analysed for
gold (fire assay 50 gms), copper (multi-acid digest - AAS),
cyanide soluble copper (bottle roll - AAS) and sulphur (ICP for
less than one per cent S otherwise LECO). Results are up-loaded
into the database electronically on an as required basis.
Each batch of samples submitted to the laboratory is
accompanied by selected standard reference material. Each
sampling and subsampling step also includes a notional one in 20
repeat. This data is up-loaded into the database. Accuracy and
precision data for all elements is monitored daily and reported
formally on a weekly and monthly basis. The quality control
system also includes routine laboratory inspections, submission
IO a third party reference lab and review of laboratory internal
QNQC reports. Sample grind size determinations are also
carried out on a regular basis.
Geology
Mine geologists log all blast holes using rugged field computers
(Hammerhead). Data collected includes lithology, sulphide
species and abundance, relative abundance of quartz veining and
alteration type and intensity. This data is down-loaded directly
into a relational database. Geologists also map available pit
exposures which provides critical structural data including
geoteehnical information. Blast holes in waste zones are also
monitored for sulphide content as an indication of acid forming
potential. Specific environmental testwork is also undertaken as
an on-going means of AMD (Acid Mine Drainage)
characterisation. Expert consultants are engaged on an as needs
basis for peer review (Figure 4).
107
C F MOOKHEAI) and CADIA GEOLOGY 1EAM
FIG4 - Feasibility model crowsection 13 920 mE
Ore control modelling
Data is retrieved from the database for processing using Surpac
Mining Software. Geology and grade information is plotted for
validation and interpretation. Interpreted geology and grade
domains are digitised on screen. Block models are created with
interpolation by ordinary kriging of the four assay fields.
Domain-specific variography is reviewed and updated regularly.
Models are stamped with lithology and :I 'profit' value calculaled
for each block for material classification purposes.
Material classification
Material classification at Cadia Hill is based on the calculated
'profit' field. The profit algorithm ($PA) incorporates a
calculation of revenue and processing cost. Revenue is a function
of grade. metal price and recovery. The latter is based on
regression relationships derived experimentally during the
feasibility process lor each of six ore-types. The ore-type is a
function of Cu S ratio and proportion of total copper that is
cyanide soluble (an indication of relative abundance of bornite).
Processing cost is a function of lithology (affects grinding cost)
and concentrate grade (TCRC). Copper grade also effects cost as
copper is treated as a hi-product credit. Prolit therefore varies
spatially, the kcy sensitivity however is gold grade. Inputs t o the
profit algorithm are updated as required (Figure 5 ) .
Block delineation
For each blast the block model is simplified to yield practical
mining outlines. These are put out as dig plans for mining crews
and other stakeholders. Blocks arc numerically identified by
bench, blast. and ore category for input into the truck dispatch
system (Modular Mining). Dig blocks arc set o u t i n the lield by
mine surveyors using high precision GPS equipment. Each block
is then delineated using large colour-coded core flute boards
(Figure 61.
108 Coolurn. aid. 14 - 17 May 2000
Cadia Hill
Gold Mine
Feoribilily M w e ,
Resourre Geoiogr
J Grade
Section 13920m E
Legend
Production and reconciliation
Mining operations are controlled with the assistance of a real
time GPS based truck dispatch system (Modular Mining -
Dispatch). This state-of-the-art system provides detailed material
movement and productivity information including source and
destination reports. A Microsoft ACCESS based system was
devcloped to manage large volumes of production and
reconciliation data and generate reports. This system interfaces
Surpac block model report files with truck movement
information from Dispatch. The system also interfaces with a
similar system devcloped to manage metallurgical balance and
other mill information including weightometer data (Figure 7).
Production reporting
Production Key Performance Indicators (KPl's) are monitored on
a daily basis using source and destination information
downloaded from the Dispatch system. On ii weekly basis
however active pit and stockpile faces are picked up by survey.
Digital terrain models are updated and used to deplete pit and
stockpile block models and stamp them with a 'date mined' lield.
Dispatch information is then used to pro-rata depleted volumes to
reconciled destinations incorporating any ore losscs and dilution.
Stockpile management
The Crushed Ore Stockpile (COS) and Run of Mine (ROM)
stockpile are treated as 'live' maintaining a daily balance of
delivered and removed material using production and
weightometer information. AI1 other stockpiles are surveyed at
the end of each month and compared to their estimated status.
Block models are constructed in Surpac from DTM surfaces and
the estimated delivered grades assigned. The stockpiles arc
closely monitored to ensure their metal inventory is realistic and
recoverable. SAG Mill feed estimates of grade and theoretical
recovery arc calculated daily through depletion of the coarse ore
stockpile (COS).
4th International Mining Geology Conference
 CAIIIA HILL GOLD MINE -- ONE YEAR D O W N THE TRACK

WA HILL G
O -
D MlNt k4TERlMCldSSIFICATION C M
As A I 28 JANUAb7 ?wQ

sow os1 s1 :

Material
CIassIficallon YCIIOW

Dig Block No 401,402 E ~ C

601,602 e b 301 302 elc 201.202 elc
Derlmabon S M Slochple eg
e g w 2 eg Giecn? YELLOW3

Flci S - Material classification chart

SURPIc?Ow . SURPU hhmn Inml..,llgnol

Fici 6 - Dig plan example.

4th International Mining Geology Conference Coolum, Old, 14 - 17 May 2000 109
C F MOORI-IEAD and CADlA GEOLOGY TEAM
0,. CO"ll0l
Blockmodml
JJ
Y.1.IIYIOIC.I
Accountlnp
S"S1.m
A PRODUCTION
RECONCILIATION
SYSTEY
FIG7 - PRS flowchart.
Reconciliation
Net production is calculated as a function of mill adjusted
production and net stockpile movements. This is reconciled
against survey based reserve modcl depletions as a measure of
block model performance as a predictive model for the business.
Results are formally reported on a monthly, cumulative and
rolling basis (three months). In addition detailed reconciliation of
each process step is undertaken to characterise any variances in
the net reconciliation. This includes comparison of the reserve
modcl to the ore control model verse (information effect). ore
control to dig plans (selectivity), dig plans to as mined
(oreloss/dilution) and as mined to mill adjusted (mill
reconciliation). Results are analysed numerically. as
grade/tonnage curves and spatially.
VARIANCES AND ANALYSIS
During the first year of production at Cadia Hill mapping and
reconciliation revealed significant variances to results predicted
by the model. Most of these variances were positive and expected
due to intentional and unintentional conservatism built into the
original model. Importantly. during that period ore control based
production figures reconciled within two per cent of net smelter
returns validating the use of this data as the reconciliation
benchmark.
Geology
Structure
Mapping of mine exposures has refined the structural framework
and ore zone configuration developed for the feasibility study
drill hole-based interpretation. While no fundamental changes to
the geological interpretation were required, structures subparallel
to the principal drilling direction were accurately defined and
located. Similarly major thrust faults on the western side of the
pit which were previously poorly constrained have heen shown to
he significantly more complex. Resolution of these issues proved
to he vital in improving the model for short and mid term mine
planning as they had material influence on the local dktribution
of grade and problematic zones o f intense alteration that had a
negative impact on the flotation process from time to time.
110 Coolurn. Old, 14 - 17 M a y 2000
Mineralisation
Pit mapping has confirmed the majority o f the mincralisation
zones based on earlier diamond drilling. Howevcr detailed
mapping has also enabled the recognition of an additional
discrete zone of copper mincralisation i n the northwestern
portion of the pit not identified in the drillout phase. The copper
sulphides present in this zone arc hosted in fractures and breccia
matrices clearly not typical of the main ore zone miiieralisation
style. This small zone of very high copper grades may in part
have contributed to the copper grade variation described below.
Production
To the end of the June 1999. 14.5 Mt of ore was processed
through the concentrator. Reconciliation of this ore against the
reserve predictions has shown a 14 per cent increase in tonnes.
with a nine per cent increase in copper grade and a one per cent
increase in grade for gold (Newcrest Mining Annual Report.
1999). Metal recoveries were also significantly underestimated in
the model. The combined upgrade of both in situ metal .and
recoveries resulted in 23 per cent additional gold and 26 per cent
additional copper metal production compared to reserve
expectation for the four quarters ending June 1999 (Newcrest
Mining Limited Quarterly Report to Shareholders. 30 June
1999).
Variance characterisation
Information effect
Examination of incremental ore showed that additional tonnage
above cut-off was being identified by ore control on the orebody
margins. Testwork targeted at reasons for this reconciliation
variance examined the effects of incremental increases in sample
data density. Using the available high-density blasthole data. a
trial was run by selective inclusion of increasing number of
samples to establish if a reliable relationship between data
density and ore tonnes could be defined. Results from this work
showed a small but consistent increase in tonnes defined above
production cut-offs with increasing data density. Interestingly
however this information effect did not appear to result in the
expected reduction in the average grade of ore mined.
Unidentgkd high-grade zones
Further investigation revealed that the effect of additional lower
grade tonnage at the orebody margins was more or less offset by
under-sampled higher gold grade 'pods' seen in the ore control
data to a greater extent than the wider spaced diamond drilling
data. Similarly the high copper zone noted above was intersected
by few diamond holes and was under-sampled in the feasibility
study model. The combined effect of under-sampling due to wide
spaced diamond data density was further compounded by
orientation of that data with the copper breccia zone striking
subparallel to the regular drill pattern. Furthermore the original
model served to smooth the data through gold equivalent (AuEq)
domain interpretation and inverse distance interpolation.
Sample biases
Investigation of possible bias between diamond core and blast
hole sample assays was also undertaken. This included a nearest
neighbour study where bench core composites within each
domain were paired with blast-holes within 2 m separation.
Results showed a clear understatement of gold and copper in the
drillout data compared to.the production blast-holes in the main
ore zone. A program of re-analysis of drill-out pulps and
re-certification of standard reference materials from that period
was commenced to resolvc this issue. (Results however were not
yet available at the time of writing.)
4th lnternahonal Mining Geology Conference

FIG8 - Updated niodcl cross-section I3 920 mE.
Other variunces
The metallurgical recovery models established during the Cadis
Hill feasibility were shown during the first year 01- production to
clearly undcr-estimate achievable recoveries. This variance
significantly contributed to the overall metal reconciliation result.
The causes of this are not withln the scopc of this paper.
REMODELLING
Geology
Interpretation
All lithological. structural and grade domains were re-interpreted
from basic principles using all available diamond. ore control and
mapping data. With respect to the latter, Au and Cu zones were
interpreted separately in this instance highlighting a subtle spatial
separation of the maxima of the two economic metals within the
overall mineralised zones. All domains and subdomains were
digitised and wireframes created that were subsequently used to
flag the data. This did not result in a material change to the
fundamental interpretation however the location of critical
structures was improved.
Variography
Data was composted to 5 m downhole for modelling purposes.
Domainal variography was performed for all domains and
interpolated fields including Au, Cu, Ag, CuCN, and S. Typical
variograms for high-grade gold domains (mean 1.64 g/t) were
interpreted as four structure curves with 50 per cent nugget. total
4th International Mining Geology Conference Coolurn. Qld. 14
CAIIIA IIILL GOLD MINE - O N E YEAR D O W N THE TRACK
Cadia Hill
Gold Mine
Updated Model
Resource Geology
8 Gold Grade
Section 13920m E
variance 0.6, range 320 metres, with the plane of best continuity
dipping 5 0 degrees to 210. Typical high-grade copper domain
(mean 0.39 per cent Cu) variograms were four structure curves
with 20 per cent nugget. total variance 0.025. range 300 with
plane of best continuity similar to Au at 50 degrees to 210.
Lower grade domains have considerably lower variance values
(Figure 9).
Interpolation
Grade interpolation used ordinary kriging with input parameters
for each domain defined by variography described above. A
regular block size of 12.5 by 12.5 by IS m bench was used with
subcelling allowed on oxidation and topography surfaces only.
The volume model comprised a combination of blocks from
individually filled wireframes for each grade and structural
domain with blocks flakged appropriately for the interpolation
process. Assay grades interpolated included Au. Cu. Ag, CuCN
(cyanide soluble copper) and S (total sulphur). Grades for each
element and domain were interpolated using only those samples
within the same domain plus a 15 m halo around the domain to
'soften' the hard boundary effect.
The interpolated grade model was subsequently updated with
resource category, density (based on lithology) and an
appropriate volume of waste with modeled AMD field.
Waste model
Sulphide distributioti models
The abundance of sulphide species including pyrite. chalcopyrite
and bornite was logged electronically during the Cadia Hill
~ 17 May 2000 111
 C F MOORHEAD and CADlA GEOLOGY TEAM

Cadia Hill
Gold Mine
Updated Model
Resoucce Geology
8 Copper Grode
Section 13920m E

FIG9 - Example of fitted experimental variograni

, drillout on a trace. moderate and abundant basis. This -. iE5 'St . _ 3:c._

information was taken advantage of t o create a series of sulphide

distribution models using indicator kriging (IK). This was u>
undertaken in an attempt to create improved predictive models of
spatial sulphide distribution for metallurgical and waste A h l D
characterization modelling. The logged sulphide database
~
comprised 157 kin of core logged at 1 m intervals which were
cornposired to 5 in intervals lor interpolation. Variography r u n
on the data showed broad long-range anisotropy of each sulphide
species approximately parallel to Au and Cu mineralisation
trends. The pyrite distribution model derived from this process
was subsequently applied to development of an improved A h l D
Model.

AMD model
The pyrite distribution model using the 'Trace' indicator was
calibrated against actual distribution of A M D observed over the
first year of production. I t was found that at a cut-off of 0.57 a
good numeric and spatial reconciliation was achieved. That is, all
blocks in the model with >57 per cent probability of containing
greater than trace (0.25 per cent) pyrite corresponded closely
with material classified in production as potentially acid forming.
In lieu of results from on-going A M D Characterisation testwork.
this model was adopted a s the predictive model for A M D
distribution in the life of mine plant.

I i At the time of writing this model continued to perform well :IS a

prcdicitve rnorlel for AMD distribution at Cadia. Characterisation
work inay result i n a lifting of the 'cut-off' iiecessitating :I funher
change 10 this inotlel.
i FIG IO

I 112 Coolum, Old. 14 - 17 May 2000 4th International Mining Geology Conference
 CADIA HILL COLI) MINE -ONE YEAR DOWN THE TRACK

I C A D I A H I L L - RESOURCE MODELS

3j
3 0 0
leet3

W i
M o d a l

G R A D E / T O N

t h i n
v - N o w

C U R V E S

c o m m o n
? S o 9

P i t
-
MODEL

C o p p o r

V o I u m e

\ \
\\
\ \
\ \

FIG 1 I

4th International Mining Geology Conference Coolum, Old. 14 - 17 May 2000 113
C F MOORHEAD and CADIA GEOLOGY 1EAM
Other
As part of the re-evaluation process the geotechnical and
metallurgical models were also reviewed and updated. The detail
of this remodelling is not within the scope o f this paper.
Metallurgical recovery
Real production data wiis extracted from the geology and
metallurgy databases. This data allowed metallurgical recovery
models to be simplified and modified lo yield a signilicantly
improved set of predictive models for each ore-type. The detail
of this re-modelling work is not within the scope ofthis paper.
Geotechnical
Detailed mapping of open pit exposures allowed the geotechnical
pit-slope model to be updated and refined. This process was
audited by peer review and resulted in modifications bul no
material change to overall design pit-slopes.
RESULTS
The updated Cadia Hill model was input into a pit optimisation
and mine design process. This was evaluated under prevailing
(reduced relative to feasibility) metal prices. The resulting life of
mine plan was shown to yield more metal at a lower cost of
production than the previous plan. Reconciliation of the new
model over recent months shows recovered metal to he within
five per cent of expectation This also represents a significant
improvement in the modcl as a planning tool.
CONCLUSION
Implementation of an effective reconciliation process led to early
identification of variances that were material to t h e business.
Testwork was conducted to verify underlying causes of. and
quantify these variances. The geological model was able to be
updated using comprehensive mapping information and the
resource re-estimated for input into the pit optimisation process.
The resulting mine plan yields more metal at lower cost despite
114 Coolum. Old. 14
application of a lower gold price as the basis for revenue
calculation Ongoing mine geology initiatives aimed at
continuous improvement of the Cadia Hill, and adjacent models
will result in further value added to the Cadia Hill Gold Mine
business.
ACKNOWLEDGEMENTS
The authors would like to thank Ncwcrest Mining Limited for
permission to publish this paper. Thanks also to currcnt and past
members of the Cadia Geology Team. Garnet Halliday General
Manager Cadia Hill Gold Mine and Foy Leckie Chief Geologist
Mining and Development Newcrest Mining Limited for their
on-going strong support of Mining Geology within tht: Group.
REFERENCES
Cadia Ilrillout Staff. 1996. Resource Model Repon - Cadia Hill Copper
Gold Mineralisation - April 1996, unpublished Internal Repon.
Newcrest Mining Ltd.
Holliday. 1. Wood. D. McMillan, C and Tedder. I. 1998. Discovery of the
Cadia Au-Cu Deposits. Lachlan Fold Belt. Australia. PufIrwuy 98
Extended Ahstructs Volunre, BC and Y Chamber of Mines/SEG.
Moorhead. C E Dunham. P B, Eatwood. C J and Leckic. 1 F, 1998.
Cadia Hill - From Discovery to a Mine - A Case Study. in
Resoitrce/Resen.e Estimution Prucrice in the Cenrrul West New
South Wules Mitring lndusrry - Ciibur NSW pp 61-17 (The
Austmlasian Institute of Mining and Metallurgy: Melbourne).
Newcrest Mining Staff. 199.5. The Cadia Wallrock-Porphyry Style
Gold-Copper Deposit. NSW. Porphyry Heluted Gdd turd Copper
Deposrrs o/ rhe Asiu Pucr/ic Regioti. pp 16.I - 16.I O
Newcrest Mining Staff 1998 Cadia Gold-Copp Ileposits. Geological
Update, AIC; Bullerin. No 23 p 83.
Newcrest Mining Staff. 1998. Cadia gold-copper deposit. i n Geolrig? of
Aitstru/iun tiid (Eds: D A
Ptrpiru New Guiirrun Minenil Depc~sirs-
Berkman and I) H MacKenzie). pp 641-646 (The Australasian
Instilute of Mining and Metallurgy: Melbourne).
Wood, D G and Holliday, J K. 1995. Discovery of the Cadia Cold/Copper
Deposit in New South Wales - By Refocusing on the Results of
Previous Work. New Generution Gold Mines: Cuse Histories of
Iliscovery, pp I 1. I - I I . I O (Australian Mineral Foundation:
Adelaide).
- 17 May2000 4th Inlernational Mining Geology Conference
The Geita and Kukuluma Mineralised Trends, Lake Victoria
Goldfield, Tanzania - Orebody Characteristics and Project
Planning
D Bansah', R Chase2, A Davidson2,H Michael3, M Skead2 and H Stuart2

ABSTRACT INTRODUCTION
Ashanti Goldfields Company's (Ashanti's) most recent development is Ashanti Goldfields Company i s an African gold mining and
the Geita Project in the Lake Victoria Goldfield of NW Tanzania. It exploration company which produced over 1.5 million ounces of
coinpnses six distinct gold deposits within two mineralised trends: gold in 1998 and which has exploration interests in over 12
Nyankanga. Lone Cone. Geita Hill (Geita trend) and Matandani, African countries. Ashanti's most recent development is the
Kukuluma and Area 3 West (Kukuluma trend). Geita Project located within the Lake Victoria granite-greenstone
Between 1936 and 1966. the Geita area produced an estimated 5.5 M terrane of NW Tanzania (Figure I ) . It comprises six distinct gold
tonnes of ore from five underground deposits at an average recovered deposits within two mineralised trends: Nyankanga. Lone Cone.
grade of S.3 ut. The discovery of Nyankanga was made by Ashanti in Geita Hill (Geita trend), Matandani, Kukuluma and Area 3 West
1996 from RAB drilling of a +I00 ppb Au anomaly in laterite soil above
(Kukuluma trend). T h e total combined resource for the six
ferricrete cover. The Kukuluma trend was discovered by SAMAX
Resources (taken over by Ashanti in 1998) between 1996 and 1997 from deposits is currently I I .97 million ounces. Ashanti began
RC drilling of a +KO ppb Au laterite soil anomaly. construction of a 4 Mtpa process plant in January 1999 and
production is scheduled to commence in second-quarter 2000.
Oxide facies banded iron formation (RIF) of the Upper Nyanzian
System forms prominent topographic ridges and is the dominant host
lithology for gold mineralisation. The ridges are flanked by felsic tuff PRODUCTION AND EXPLORATION HISTORY
units which lie stratigraphically above. Syn-genetic lamprophyre
(vogesite) and post-genetic felsic dykes are also seen in the Geita trend. Gold mineralisation in the Gcita area was first discovered in the
At Nyankanga a granodiorite-diorite suite has intruded as dykes and early-1930s as part of a survey carried out by a small Kenyan
sills into RIF from a plug centred on a WNW fault and has produced syndicate. A processing plant was constructed in 1934 and
wallrock alteration assemblages similar to those seen in Cu-porphyry between 1936 and 1966, the Geita Mine constituted the largest
systems (pot&ssic. propylitic. etc) as well as sulphide and gold gold operation in East Africa, producing an estimated 5.5 MI at
deposition. However. the main orc-grade mineralisation (as in the rest of an average recovered grade of 5.3 g/t from five deposits.
the Geita trend) is controlled by low-to-medium angle structures dipping By 1940 smaller underground mines were also in operation at
north-west and north with numerous splays in the hanging wall.
Lone Cone and Ridge 8 with open pit material being mined by
High-grade shoots at Nyankanga plunge to the west and to the
north-west. being lithologically and fault-controlled respectively. At
glory hole from Prospect 30. Ore from Ridge R.and Prospect 30
Geita Hill the higher grade shoots are controlled by fold noses in BIF was transported via aerial ropeway to the Geita mill. A small
dipping to the north. Free gold occurs within fractures of sulphides. quantity of high-grade ore was trucked from the M a w e Meru
The deposits o f Kukuluina and Matandani occur on an ancient mine 20 k m to the south in the Rwamagaza greenstone belt.
(possibly Cretaceous) erosional plateau and are related to two WNW to Mining methods and cut-offs varied with deposit. Mill recovery
NW trending shear zones, discordant to the local strike of the RIF by cyanidation was approximately 85 per cent.
sequence. Complete oxidation occurs up to 120 m depth and there is a T h e Geita mine closed in 1966 d u e to a combination of
strong supergene component to the gold distribution. Primary gold inadequate financing and the fixed gold price although according
mineralisation is divisible into two distinct assemblages: to historical records, good grades were being encountered and
arsenopyrite-pyrrhotite-magnefite-chlorite associated with brecciated there was no shortage of ore at the time of closurc. Total
'cherts and pyrite associated with shaley banded ironstones. Area 3W is production is shown by deposit in Table 1.
most likely the fault-displaced extension of the same mineralised trend
and comprises thin, intermittent zones of high-grade gold mineralisation
occurring adjacent to a ridge in banded cherts and minor RIF.
Current resources (measured. indicated and inferred) for the project TABLE 1
are estimated a1 89.24 MI at an average grade of 4.17 g/t ( I I .97 MOLof Geita district historic production.
contained gold) at a 1 .O g/t cut-off grade. Of this 9.83 Moz is within the
'Geita trend and 2.14 Moz is within the Kukuluma trend. A resource of Deposit Tonnes Grade Ounces
2.74 Moz is,froin an inferred resource at depth at Nyankanga where the milled recovered g/t
viability of an underground operation is being studied. Proven and
Geita Mine 3 827 587 s.07
probable reserves are 49.77 MI @ 3.46 g/t (5.54 Moz) based on a
S32S/oz gold price providing a mine life of ten years at an average Lone Cone 163 ~ I S 8.22--
production rate of S(K) 000 oz per year. Keserve estimation was carried Prospec! 30 392 Yl0 5.72 .
out using mineable polygons to select resource blocks based on a series
of mining and costs parameters. In addition key cost parameters were Ridge 8 833 092
tested to provide sensitivities for pit optimisations and pathfinders for Mawe Meru 82 928 2 I .65
negotiations with suppliers and contractors. Construction began in March (Rwamagaza) ~-
1999 and first gold is expected to be poured in the second-quarter 2000.
Total 5 292 992 S.88

I. Ashanti Exploration Ltd, Box 2665. Accra. Ghana.

2 Ashanti Goldfields Tanzania Ltd, Box 532. Geita Tanzania. Modern exploration in the Geita belt was initiated in 1994 by
3. MAuslMM. Ashanti Goldfields Tanzania Ltd. Box 532, Geita Cluff Resources PIC in the Gcita East and Geita West licences
Tanzania (190 km') (Figure 2). Initial work focussed on the previous
production centres of Lone Cone and Prospect 30.At Lone C o n e

4th International Mining Geology Conference Coolum, Qld, 14 - 17 May 2000 115
 1) BANSAH. R CHASE, A DAVIIXON, H MICHAEL, M SKEAII and H STUART

SUKU

ADVANCFD GO1 D PROJECT ! \.

50kn1
I
3 ARCIIEAN GREENSTONE B€Li
\

I hi 1 - The Lake Victoria goldfields

FK;2 - Ashanti Goldfields Tanzania Ltd Geita licences with regional geology.

\
116 Coolurn. Old. 14 - 17 May 2000 41h International Mining Geology Conlerence
I

trenching in late- IO94 defined two mincralised zones which were
drilled on an 80 in x 40 m grid in carly-1995. Following the
a w m l of the Geita Hill liccncc i n late-I 9% and the acquisition
of Cluff by Ashanti in early-1996, work commenced on 9500 m
of underground channel sampling which led to a first phase of
drilling on an 80 ni x 40 m grid. Resource drilling on a 40 m x
20 m grid to a maximum depth of 175 m below surface was
completed by December 1997.
Mineralisation at Nyankanga was discovered in May 1996
from rotary air blast drilling (RAB) of a 200 ppb soil anomaly.
Initial reverse circulation (RC) drilling commenced in mid-I996
and was ;icceleratcd i n late-1997 following the discovery of the
' I 120' shoot and high-grade BIF hosted mineralisation at depth
i n the eastern part of the deposit.
Work by SAMqX Gold Inc. on the Kukuluma (100 km') and
H u g a l u l ~(120 km-) Prospecting Licences began in 199s (Figure
2). Rcconn:iissance soil sampling (Figure 3) outlined four main
:inomalics on which trenching was carried out. Anomalies from
the HIF ridge to the south-east (Area 3) were more encouraging
and were drilled between late-199s and mid-1997. In June 1997,
eight holes were targeted on Area 1 based on an erratic soil
anomaly (+I00 ppb) around two artisanal pits. Five of these
holes returned significant results in what is now the Kukuluma
deposit. I n early-1998 RAB drilling of extensions discovered the
Matandani deposit 700 m to the north. In late-1998 the
Kukuluma and hlatandani deposits were included in the Geita
project following the acquisition of SAMAX by Ashanti.
DISTRICT GEOLOGY
The Gcitn Greenstone belt forms the east-west trending northern
arm of the regional Sukumaland Greenstone belt and is
approximately 60 km long by IS km wide (Figure I ) . The belt is
4th International Mining Geology Conference Coolum. Qld. 14
THE GEITA AND KUKULUMA MlNERALlSED TRENDS
dominated by isoclinally folded oxide facies RIF ridges
averaging 500 m in thickness and flanked by younger felsic
pyroclastics. The BIF units have been later deformed into
west-plunging open folds with WNW axial trends. These have
subsequently undergone major displacement along NW trending
shears. Regional Proterozoic quartz-gabbro dykes intrude along
reactivated NE-SW faults (Figure 2 ) .
THE GEITA TREND
The Nyankanga, Lone Cone and Geita Hill deposits form a
semi-continuous NE mineralised trend near the hinge of the
principal west-plunging synform. All deposits dip N-to-NW,
subparallel to stratigraphy. They arc located on structures
subsidiary to the regional NW trending shears, close to which
local compression causes breaks in continuity. (Figure 3).
Nyankanga
The Nyankanga deposit forms the SW limit of current known
resources along the Geita Trend and subcrops in low ground
below 5 - 15 m of barren, transported laterite cover (Figure 4).
NNW-to-NW trending regional shears, Iyoda and Veda, bound
the deposit along strike, towards which a gradual decrease in
gold mineralisation is observed.
A microdiorite intrusive plug, whose emplacement is thought
to have been focussed along the Iyoda Shear (Figure 5 ) is
situated in the south and west of the deposit. Sills penetrate
north-eastwards from this plug into a 30" NW-dipping
sedimentary package of Banded Iron Formation with lesser
mudstone and siltstone (hereafter grouped as BIF), giving rise to
a repetitive stratigraphic sequence which forms the main host to
mineralisation. RIF increases in abundance away from the
intrusive centre along strike to the N E and down dip.
- 17 May 2000 117
 I
D RANSAH. R CHASE, A DAVIDSON. 11 MICHAEL, M SKEAL) and H STUART
I
FIG4 - Nyankanga suhcrop geology with orebody and with final pit outlines.
Mineralisation is principally related 10
a sigmoidal NE
trending structure formed between the lyoda and Veda shears
during dextral displacemcnt. Stratigraphy! has also been drag
folded into a similar orientation (Figure 3). , with a subvertical NW-trending structure. This has provided
The main orebody is up to SO m thick in the central part of the
deposit and dips subparallel to stratigraphy at 20 - 30" to the NW
and N. Numerous steeper mineralised strucpres up to IO m thick
occur as imbricate splays in the hangingwall. Discontinuous
low-grade zones occur in the footwall and outside the main
deposit and are thought to be intrusion related.
Areas of high-grade seen on the grade x thickness plan
projection (Figure 5 ) generally represent uniformly mineralised
BIF units grading in the order of 20 g/t over 10 m thickness and
ranging up to 45 g/t over 18 m. Witfiin the microdiorite,
mineralisation comprises a wide anomalous zone up to 60 m
thick typically containing multiple interseciions of 1 - 2 g/t over
5 - 8 m. Rheological contrast with the microdiorite has focussed
shearing within the BIF and mineralisation has followed these
units wherever possible, resulting in higherlgrades. Where BIF is
not present (as in the main microdiorite plug in the SW of the
deposit) or where the ore zone passes through a significant
microdiorite sill a lack of stress focus has dispersed ore fluids
away from the main shear along stockwork fabrics and
pre-existing structures such as higher angle joint sets. In these
areas the orebody is wider but has a more erratic gold
distribution and a lower average grade. Thus, grade distribution
within the orebody is primarily controlled) by lithology (Figure
6).
!
118 Coolum. Qld. 14
There is also a structurally controlled high-grade zone (the
' I 120 shoot') in the SW of the deposit (Figure 4). This is situated
along the NW plunging intersection lineation of the main shear
focus for ore fluids in the microdiorite and has resulted in
extremely high-grade-thickness values for this host.
Two phases of syn-to-post-mineralisation dykes occur
throughout the deposit and are thought to represent late felsic
evolution of the intrusive system at Nyankanga. Initial
emplacement of en-echelon felsic porphyry dykes SO - I 0 0 m
apart occurred dominantly along pre-existing joint sets dipping
40 - SO" NW and N with some dilation parallel to the ore zone
where they cross-cut. Late-stage deposition and/or
re-mobilisation of gold may have occurred during emplacement
since very high grades (50 - 200 g/t) are often observed in the
orebody adjacent to contacts and low-to-moderate grades can be
seen within the margins of the dykes themselves. A single,
barren, final stage quartz porphyry dyke, which has emplaced
along joint-related structures dipping 40 - SO" to NW and N
cross-cuts and displaccs all lithologies and mineralisation. With
respect to the Iyoda and Veda shears all dykes follow the same
sigmoidal, drag-folded pattern as the bedding and orebody.
Gold mineralisation is intimately associated with fine-grained
pyrite and silicification. Free gold occurs as inclusions and
within fractures in pyrite (Schandl, 1999) and as discrete grains
within secondary quartz. In BIF, ductile shearing and
mineralisation have occurred preferentially within magnetite
- 17 May 2000 4th International Mining Geology Conference
 THE GEITA A N D K U K U L U M A MINEKALISED TRENDS

.~ . . .. ...-
.... -.
. .. .
ci
1.1 5
,. ,
&I1
w
,- . 4
........... .... ... -. ....

Fici 5 - Nyankanga grade thickness distribution, plan projection.

bands and along magnetite-chert bedding contacts. Areas of
higher strain have resulted in brecciation and the resultant higher
fluid flow has caused silica flooding and pervasive pyrite
mineralisation, eventually leading to total replacement of the
protolith in arcas of very high-grade (approximately >SO g/t). In
microdiorite, pyrite occurs as fracture fill in biotite/calcite veinlet
stockworks and in quartz veins. In areas of higher grade
(approximately >3 g/t) pyrite is also finely disseminated
throughout the groundmass and silica replacement is pervasive.
The Nyankanga orebody exhibits a complex distribution of
overprinting alteration assemblages. Multiple intrusion-related
alteration systems are seen in the microdiorite and less frequently
in HIF and although work to-date on this aspect is limited i t is
evident that similarities exist with porphyry deposits. Potassic
(K-feldspar, biotite, magnetite) and sodic (albite) alteration is
most common in the west of the deposit within the main intrusive
and close to the footwall of the orebody. Outside these high
temperature zones haloes of epidote and sericite are further
surrounded by widespread propylitic (calcite, chlorite) alteration.
Subeconomic gold and anomalous copper (chalcopyrite), lead
and zinc are thought to be related to intrusive mineralisation.
When coincident with the main shear, this early alteration and
mineralisation has frequently been brecciated and overprinted by
silicification and ore-grade gold deposition related to the main
mineralising event. In these cases early subrounded discrete gold
grains can be seen rimmed by later phase platy over-growths of
gold (Schandl, 1999).
Geita Hill
The North East Extension mine is connected along strike to the
Geita Mine by historic underground workings. Open stoping up
to 20 m width at a cut-off of approximately 4.5 g/t took place on
nine levels each 45 - 50 m apart. Ore was preferentially extracted
from higher grade hangingwall and footwall zones which
converge in the central part of the Geita Mine.

4th International Mining Geology Conference Coolurn, Old, 14 - 17 May 2000 119
 D BANSAH. R CHASE. A IIAVIDSON, H MICHAEL. M SKEAD and I1 STUART
14COmKL
SE I
MICRODIORITE
PORPHYRY DYKES
I 1
OOmRL
w w W w
E E E E
0 c3 c3
0 0 0 0
dl
0
-1
N
21
PI(;6 - Schematic cross-section, Nyankanga line 1080 niE looking southwest
The lithological succession is dominated by BIF with interbeds
of mudstone, siltstone and felsic pyroclastics. Feldspar porphyry
(FP) sills seen in the Geita Mine (Schandl, 1999) are thought to
be genetically related to microdiorite in the SW of Gcita Hill and
other parts of the Geita Trend. The volume of sill intrusions
decreases NE-wards. Pre-to-syn genetic biotite-rich lamprophyrc
(vogesite) intruded along pre-existing E-W structures and other
planes of weakness such as bedding, lithological contacts and the
principal mineralising shear.
I Mineralisation is controlled by a major north-east trending
shear dipping between SO and 55" NW with imbricate splays in
the hangingwall. Shearing is subparallel to the regional strike of
the RIF sequence but cross-cuts local folding and lithological
contacts. The outer contacts of the orebody are sharp with a rapid
drop in grade over 1 to 2 m to background levels of less than
0.02 g/t gold. Ore grade mineralisation is continuous over a
strike length of 2.3 km, within which four lithologically
controlled high-grade shoots plunge to the north, with grades up
to 8 g/t over 40 m. These are the main Geita and North East
Extension mines (BIF dominated) and two newly discovered
shoots; The Gap (interbcddcd BIF and felsic tuff) and Geita West
(interbedded RIF and microdiorite) (Figure 7). Widespread
pre-mineralisation faulting is responsible for abrupt changes in
120 Coolurn. Old, 14
v LATERITE
100 metres 600mi(I,
Irl
B
0 0
0
?I 221
host lithology between these shoots bringing less-Jhvourable
lithological packages into the path of the mineralising structure.
Extensive microdiorite occurs between Gcita Wcst and Geita
Mine and a highly disjointed interbcdded BIF and felsic tuff
sequence is found between Geita Mine and The Gap. The
orebody is thinner ( 5 - IS m) and lower grade ( 1 - 2 g/t) in these
areas.
Gold mineralisation is intimately associated with fiiie-grained
sulphide mincralisation and silicification. Pyrite is dominant with
localised pyrrhotite-rich zones. Sulphide content is typically ten
to 20 per cent of total rock volume in high-grade areas with
occasional zones of massive replacement. The style of sulphide
mineralisation within RIF is similar to that at Nyankanga
whereas in other lithologies sulphides are disseminated. Most
gold Occurrences are free as fine-grained inclusions and
fracture-fill in pyritc (Schandl, 1999). Sevcral gcnerations of
quartz veins are present. Veins may attain widths up to 2 m.
Their margins are generally heavily deformed and may contain
high gold grades, most notably in North East Extension, where
they have been targeted by stoping. Base metal occurrences are
minor.
Pervasive scricitisation common in the fclsic porphyry is
thought to be early in the genetic scquencc. Thin (up to 1 cm),
irregular veinlcts of calcite with subsidiary ankerite and dolomite
- 17 May 2000 4th International Mining Geology Conference

NE
North East Extension Geita Mine
Stope HtghGradeShoot - Mine Level
7 - Geita Hill deposit long section looking southeast showing location of high-grade shoots.
post-date and cross-cut both mineralisation and silicification/
quartz veining. Late secondary biotite rims calcite and quartz
veins and also cements some breccias (Schandl, 1009).
Lone Cone
Two orebodies are defined at Lone Cone: the North Zone, which
was mined between 1940 and 19.53 on three levels accessed by a
vertical shaft. and the South Zone, recently discovered by
artisanal miners. To-date only initial drilling has been completed.
The North Zone is hosted by a distinct BIF unit within a
regular sequence of interbedded BIF and microdiorite.
Mineralisation in the South Zone is hosted by BIT: with minor
interbedded felsic tulfs. A late felsic dyke intrudes along the
mineralised structure in the South Zone.
Both orebodies strike ENE and dip SO" to the north. The North
Zone has been delineated over a strike length of 480 m. Ore
occurs as two high-grade lodes (6 - 7 glt over 5 - 8 m) at the
hanging wall and foot wall margins with lower grade material
between contributing to a total thickness up to 25 m. As at Geita
Mine. ore wiis preferentially mined from hanging wall and
footwall zones. The South Zone outcrops over a strike of 240 m
and differs in character from the North Zone in being made up of
various thin and sometimes patchy and inconsistent mineralised
sections forming a total thickness of up to 40 m. Gold
mineralisation and wallrock alteration are similar to that at Geita
Hill.
THE KUKULUMA TREND
The Kukuluma Trend comprises five NW-trending areas of
significant gold mineralisation within a 3 km ESE trending gold
in soil anomaly (+SO ppb) that cuts obliquely across a
4th International Mining Geology Conference Coolurn. Old. 14 -
THE GEITA AND KUKULUMA MINEKALISED TRENDS
sw
m
500m
NW-trending horseshoe ridge of HIF called Bukolwa Hill
(Figure 8). The five areas comprise three on the eastern limb of
the horseshoe in Area 3, and two close to the apex on the western
limb now referred to as the Kukuluma and Matandani deposits.
Mining in the area is limited to artisanal pits located within the
Kukuluma deposit and sporadic workings at several other
locations along the ridge.
Bukolwa Hill comprises prominent ridges of BIF and chert
interbedded with mudstone, siltstone and wacke. The BIF
sequence is underlain by a distinctive unit of carbonaceous
pyritic mudstone and overlain by felsic tuffs that flank the ridges.
Tight anticlinal folding, with the BIF and pyritic mudstone in the
core, has been refolded along a NW axis to produce the
horseshoe ridge. NW shears trend parallel or subparallel to
bedding. A major E-W shear cuts across the fold and the
Kukuluma Trend. The hill is also cross-cut by N-S and N-E
trending structures.
The Kukuluma and Matandani deposits are located in
topographic bowls incised into the ancient (Cretaceous) hill-top
lerricrete plateau at the head of seasonal streams. Mineralisation
is fault controlled. stratabound and localised by the intersection
of two shears (the Kasata and Juma shears) trending NW and
dipping steeply to the NE with iron-rich lithologies of a similar
strike but shallower dip (Figure 9).
Kukuluma
The Kukuluma deposit comprises two distinct zones of
mineralisation, the 'Fold Nose' and the 'Fold Limb'. Artisanal
miners have worked sporadically at two locations. Both zones are
focussed where the general 700" strike of the western HIF ridge
is deflected to 280" by the influence of the E-W trending shear.
lligh strain deformation is evident in rocks from both zones
17 May 2000 121
 ~
D BANSAH, R CHASE. A DAVIDSON. H MICHAEL, M SKEAD and H STUART
Drainage :
>80ppb gold in soil
7 40 to 80ppb gold in soil
-. Structure (interpreted)
- Trace of BIF unit
FIG8 - The Kukuluma Trend - geochemistry and deposit locations.
(Figure IO). As a result of the deep weathering the upper 20 m of
the profile is leached hence the poor soil and trench results
obtained from this area. An altered, unmineralised intrusion of
diorite underlies the Kukuluma deposit.
Mineralisation on the Fold Limb occurs along a 680 m section
of the Juma shear, in a sequence comprising highly brecciated
chert beds ( 5 to 10 cm thick) and grunerite-chlorite-magnetite
mudstone. The orebody dies out to the SE where it approaches
the E-W shear and is truncated to the NW by a N-S fault. The
Fold Nose lies SW of the Fold Limb and comprises a core of
mineralisation 150 m by 50 m trending 290" and confined to the
well bedded, oxide facies BIF in the nose of the fold (axial plane
strike IOO", plunging 70" to 90" SE) where it is cut by the Kasata
shear.
Gold in fresh rock is very fine grained (<20 p) and occurs
solely in the iron-rich mudstone, included in magnetite and
arsenopyrite within fibrous grunerite aggregates and spatially
associated with pyrhotite and pyrite. The margins to the
mineralisation are extremely sharp, with the intercalated
sediments being rarely mineralised in fresh rock.
Matandani
The Matandani deposit comprises two parallel zones, trending
315" referred to as East and West. The mineralisation is covered
by a blanket of soil and laterite and was identified from an erratic
122 Coolurn, Qld. 14 - 17 May1 2000
gold-in-soil anomaly consistent with the northward projection of
the Kukuluma deposit. The host lithologies tend to be more
clastic than those at Kukuluma and include shaley BIF and
wackes.
Mineralisation is localised along NW trending shears, with the
stronger mineralisation of the eastern zone being associated with
the dislocated, northern extension of the Juma shear. Although
the bulk of the gold is contained in discrete BIF units, occasional
high-grade, quartz vein mineralisation is encountered in the
volcano-sedimentary lithologies.
Both the Matandani and the Kukuluma deposits are weathered
to over 100 m in some areas and this appears to have had a strong
influence on the current gold distribution. Initial trenching
through the soil overburden gave few indications of the ore
bodies below, yielding a maximum of 0.85 g/t over 2 m.
However, free 'leaf' gold is found along fractures in BIF taken
from the Kasata artisanal workings ( I O m maximum depth).
Exploration drilling has revealed a general increase in mean
grade of 2 to 3 g/t between 60 and 105 m depth at Kukuluma,
and a planar zone of gold mineralisation between the base of
complete oxidation and the top of fresh rock, identified by
panning the drill cuttings and quantified by analytical results. In
modelling these deposits it is therefore recognised that narrow
stringer in fresh rock coalesce to form wider zones of
mineralisation in the zone of weathering.
4th International Mining Geology Conference
 THE GElTA A N D K U K U L U M A M I N E R A L I S E D TRENDS

---- Lithological
Boundary

Fault Fold Nose

b
Ferricrete Well Bedded.
Shaley BIF
400m
Gold Mineralisation

FIG9 - KukulumdMatandani geology plan

FOLD NOSE FOLD LIMB

High grade, vertical core of mineralisation Steeply dipping, faun controlled
in Fold Nose cross-cut by Kasata Shear strata-bound mineralisation

FIGIO - Kukuluma deposit schematic section looking northwest.

4th International Mining Geology Conference Coolum. Old. 14 - 17 May 2000

123 I
D BANSAH, K CHASE. A DAVIDSON, H MICHAEL. M SKEAD and H STUART
Area 3
Area 3 comprises three mineraliscd zones located along the
inside edge of the I .5 km long eastern limb of Bukolwa Hill. The
BIF sequence comprises more chert than at Kukuluma although
the same carbonaceous pyritic mudstone is seen at the core of the
fold and iron-rich sediments are found interbedded with the BIF
at the southern end of the ridge. The limb is linear. with a vertical
dip and NW strike. At the southern end of the limb, an ESE
plunging fold nose is intruded by a granodiorite plug. Garnet and
coarse grained actinolite are ubiquitous in the iron-rich
sediments. The laterite cap and underlying leached profile
observed at Kukuluma has been eroded from this area which
accounts for the stronger, more coherent geochemical anomaly
delineated along this part of the trend and the superior results
achieved by the trenching that led to the first phases of drilling.
Mineralisation at two locations along the limb occurs at the
intersection of crosscutting NE faults with the principal NW
shear. Gold is associated with arsenopyrite in magnetite rich
bands or occurs with slicification and quartz veins at the sheared
contact between the RIF and the felsic tuff. Grades are therefore
either high over relatively small widths (eg 18.85 g/t over 6 m,
13.9 dt over 8 m) or wider and lower grade (cg 2.2 g/t over 26
m, 2 3 g/t over 1 1 m). At the southern end of the limb the fold
nose is cut by the same northwest shear, but mineralisaton is of
low-grade and appears to be relatively unfocused (eg 30 m at
1.65 g/t, 15 m at 1.02 d t ) . A low-grade (0.5 to 1 g/t) halo is
associated with the granitoid intrusive.
RESOURCE ESTIMATION
Resource estimation was carried out for Nyankanga, Geita Hill,
Lone Cone, Kukulurna and Matandani. All drill data was
recorded on field sheets and entered into Field Marshall.
Micromine was then used for data validation and generation of
sections on which geological and orebody interpretation are
carried out before data is transferred to Datamine for modelling.
A 3D wireframe geological model was created and used as a
guide for interpreting the orebody for which outlines were
generated using a cut-off minimum of 3 rn grading 0.5 g/t. Each
zone of mineralisation was considered independently. Additional
surfaces were modelled to allow classification into fcrncrete,
oxide, transition and sulphide zones and the assignment of
density factors.
The block model was created by filling the respective
wireframes with rectangular blocks to produce a volume model.
Strike:across strike:elevation dimensions of 10 m:5 m:5 m were
used with subblocking along boundaries to a minimum size of
2.25 m : 0 3 m:0.5 m.
The distribution of sample lengths in the two sampling
methods employed to evaluate the deposits show that 95.3 per
cent of the samples have a length of 1 m. Consequently, irregular
core samples lengths were composited to one metre to yield
common sample lengths. Univariate statistics were calculated on
all samples within the wireframe boundaries selected, and then
on subsets representing individual mineralised zones. Top cuts
were applied to each zone based on distribution in cumulative
frequency plots. These ranged from 2 0 to 76 glt.
Variographic analysis was undertaken primarily to determine
the suitability of the drill spacing used, to determine the optimum
dimensions of the search ellipse and to study the grade
distribution in each deposit. With the exception of down-hole
semi-variograms. all directional variograms were noisy with
minimal apparent structure and did not give sufficient confidence
to derive appropriate cross-validation models to enable the use of
kriging as an interpolation method. As a result inverse distance
squared (ID2) was used to estimate block grades. Directional
weighting of I:l:0.17were applied to limit the averaging of
grades in the across-strike direction. To control the orientation of
124 Coolurn. Old. 14 - 17 May 2000
the search during grade interpolation. each block was first
assigned an azimuth and dip value derived from dipitiscd plan
and cross-section strings that trace the trend of each mineraliscd
zone. The grade interpolation was conducted as a series of
multiple loops. For a given run, all blocks with local dip and
azimuth values that locate within a I O ” azimuth/dip window
were interpolated. Each zone was estimated separately such that
only samples relating to a given zondlode was used to
interpolate grades into it.
Kock densities were calculated based on the weight and
displacement of whole NQ and H Q core samples and are
summarised in Table 2. Owing to the large difference between
BIF and microdiorite density throughout the area and the strong
lithological control on the distribution of high grades, especially
at Nyankanga, ore blocks were assigned densities b x e d on the
geological model.
TABLE
2
Rock densities.
I
---.. -I----
:Hock type I Oxide_-!-. Tr0ej.n j Sulphide--;
i 2.60
1.76_.1-
.~ 2.90
2.27 .
3.0s.
2.70
,
..
At Nyankanga, the barren fclsic dykes were modelled
separately and the grade within those outlines excluded from the
statistics and grade interpolation. Where they intersect the
orebody, the volume of the dykes was deducted from the orebody
model.
At Geita Hill and Lone Cone the underground workings were
wireframed based on the mine closure plans, actual intersections
with resource holes and on recent survey data. This volume was
also deducted from the orebody model.
Resource Figures are shown in Table 3. The resource has been
classified based on the September ’99 JORC code guidelines for
reporting mineral resources and ore reserves. The resource
classification is based on the density of sampling and varies from
deposit to deposit. At Geita Hill the deposit has been drilled at a
spacing of 40 m (strike) by 20 m (dip) and as such a large portion
of the resource is classified as measured. As less information is
available in the area surrounding the underground workings these
blocks have been included as indicated. At Kukuluma,
Matandani and Lone Cone, drilling is on a 40 m by 40 m spacing
and as such the bulk of the resource is classified as indicated. At
Nyankanga the near-surface portion of the orebody has been
drilled at 40 m by 20 m and is classified as measured. Below this
to the 1000 m KL the drilling is based on a 40 m by 40 m grid
and is classified as indicated.
Drilling in 1999 was aimed at delineating the full potential of
the Nyankanga open pit and the potential for an underground
operation. The drilling was widely spaced and extended the
orebody to the 750 m RL (500 m below surface). This part of the
resource has been classified as inferred. Results from this drilling
have shown significant high-grade extensions at depth which will
be mineable from an open pit. I t has also defined an underground
resource of 12.03 Mt grading 8.09 g/t which is included in the
data bclow based on a cut-off between open pit and underground
resources at the 930 m level.
RESOURCE OPTIMISATION AND PIT DESIGN
The resource block models for the six deposits were interrogated
visually in plan at 5 m intervals. The continuity of ore blocks
both along and across strike was used to estimate the potential
mine recovery of each ore bench compared to the in situ resource
estimated.
4th InternationalMining Geology Conference
 THE GElTA AND KUKULUMA MINERALISED TRENDS

TARLE 3
Geita project resources.
. . . . . -- . . . .... ~-
I
~ hlillion-tmncs Gold dt j Million ounces ... ~ Million tonnes -j Gold g/t --; Million ounces-:

Oxide
Nyonkanga -..

1.89
I

3.36 i 0.20 Measured

-.

!----
........ _-
-+
~ , - ...... 14.52
I 5.05 .. 2.36. ...

.~Transition 2.19 ~
I
1
3.29 0.23 -! Indicated ..... 10.63 i- ... 4.98 ... 1.70 1-

I
. Sulphitlc-
.... 24.07 , 5 46 423 -
lnferrrd 3.00 ' 6.24 ., 0.60 .-:

, Subtotal I 28.15 , 5 15 .
4.66 Subtotal 28.19 ;. 5.15 . . . . . . 4.66
-. :

._Underground .. .. __ _.
. .~ -
--I
!
I, Sulphide
-. .... IO:
. I4 8.42. ...... 2.74 I Indicated 0.2" .....' 6.49_,-.. 0.04
I I
~

..... . Inferred 1- .. 9.94 .-: 8.46 - . . . 2.70

I .- . Subtotal I 10.14..-, 8.42 _- .
:?!a! ...... 38.29 I 601 j . .- 7.40 -1' Total
I
38.29 .... 6.01 7.40
j Geita Hill ...... - . 1 .
- .. -- .
. .Oxide . 4.7e. ..
2.42 ,
0.37 ..
' Measured . . '
. .16.26
- ~ 2.so j. -- 1.31 .,

. .Transition 6.63 2.91. 0.54 Indicated

I

I: 2.98 -:-. 0.44 i

-...... .- -

j Sulphide
-
-, 11.14
... :
I 2.81
-.

--_I 1.01
,

, Inferred
~ - 1.58. .. 3.08 .. ().116;
!.- Total _- 22.47. . . I-.--
. . 2:64 I
I.9!-.. 1 To!@ 22.47
... ..... I .9l .
Kukuluma . . . . - ....
-- -
.-
I Oxide. . .
3.32 0.98 - . .....

I Transition 0.09 ... Indicated .....

2.46 3.47
!
Sulphide I 2.73 3.02 1.08 i 2:')o
T"td .. ! 8.62 -. . -8.62 3.25 I . 0.90
i Matandani -
7-
I
Oxide ... -:5.20.
.- -12.70
. .
. . . . .

Measured
.......

i 4.98
-~ !
. 2.84_: 0.45
~.
--I

, Transition
-- ....
I. - 0.53 ,_ 2.52-. 0.04 1 Indicated 3.85 3.34 ___ 0.41. -;
I Sulphide - 5.29 - ; -. 2.97 .-.. 0.91 .... Inferred i
--I.
2.19.. j . 2 . ! L . 0.15 _,

Total . . . . .
~ I ! , c ) L 6 2.84 j 1.01 ..I Total ... I 1.02 ..' 1 -2.01 -:
.Le?_..
..LonctCone . . . . . . - .... -. . .
i .

i
-~ .
/.Oxide..
I Transition

i
1.89
1.97 i
-2.86
2.92

2.63 -
I

i
I
.! -0.lgT.-
0,lS
0.18
Measured
I Indicated

Inferred . , .
o.(x)

9.05
I .09
.. KM;

2.73
.

.
i 0.00

0.10 __
Sulphide 2.28 ,- . -.

Tot;I I ....i.. 6.14 -j- 2.67 ..... V L ' . .Total .-pi 6.14 .. 1 . 2.67 0.52-. i

I
I
i Area 3
1 Oxide .. ?:70
r--.
2.30
---
Measured 0.00
.

0.00. :--- 0.00 ....

. -.

i 1.!-
lransi tion I 0 9 . ._ ow . . ._ _ 0.00 Indicated ....... ,
~ -...
O.O() -1 . 0.00 0 . 0 0 :

i
~

!
Sulphide
..- ..I 2.00 . 2.80 . . 0.18 Inferred .-2.70 I 2.:7
0
- 0.23 -2
I
. I

i Total ... 2.70 .- -2.70 j 0.23 -iTotal .. 2.70 -. 2.70

. ~. .. 0.23
._- ....
'. -
Total . .6-

l p d e . 19.5s
I 2.82 - I .80 .....' Measured. -1 40.84
.---- i . : 3.54 . 4.6s-
lrclnsition
..... 8.74.. i 2.81 ..
I ... 0.79 I Indicated 1
%Li. 3 . 8 0..
i.sulptlidc . , 60.69 . 4.81 9.37 . . Inferrrg ! 21.58 5.82_- 1 ! 4.04 -_
I Total
.....
89.24 4.17.. , ---I I .97-

Selection criteria were established based on the size and 0 extractable waste at three continuous blocks along strike and
selectivity of the mining equipment (IO0 t trucks with 6.5 m' three continuous blocks across strike;
excavators), the minimum mining unit (3 m x 3 m at Nyankanga, minimum polygon segments of 20 m along strike and 5 m
3 m x 2 m at Lone Cone and Geita and 2 m x 2 m at Kukuluma across strike; and
and Matandani). the dip of the orebody and the envisaged density maximum angle change between polygon segments 450.
of grade control drilling that would be carried out to define the
O n the basis of these criteria, mineable polygons containing
ore. These are summarised as follows:
the recoverable resource were selected. S o m e portions of the
included waste blocks at 33 per cent along strike and SO per were excluded from the optimisat,on (eg hanging wall
cent iicross strike: splays at Nyankanga were excluded). T h e areasdefined within

4th International Mining Geology Conference Coolum, Old. 14 - 17 May 2000 125
 I I> BANSAH, R CHASE. A DAVIDSON, H MICHAEL, M SKEAD and H STUART
the mineable polygons were then re-estimated for grade to the
I
boundary limits of the polygon outline rather than including the
resource blocks that were >1.0 dt within the outline. The
following dilution skins of specified widths were then added to
I the polygons: Lone Cone 0.25 m, Nyankanga and Kukuluma 0.5
m, Geita Hill 1.0 m and Matandani 1.2 m resulting in a diluted
reserve model that was used for pit optimisation and definition
and estimation of proved and probable reserves.
A geotechnical evaluation was carried on each deposit using
probabilistic limit equilibrium analysis and kinematic stability
assessments. In the zone of weathering the lithological units at
Geita Hill, Lone Cone and Nyankanga are of poor to fair rock
mass quality, while at Kukuluma and Matandani these have very
poor to poor rock mass quality. On a multi-bench scale,
rotational failure is expected to be the main mode of' instability in
the weathered zones.
In frcsh rock, the rock mass is of fair to good quality and
charactcrised by high intact rock strength with numerous well
developed subvertical and subhorizontal joint sets striking
normal and parallel to the trend of mineralisation. Bedding is
well developed in BIF but is generally tight or healed. Footwall
bedding dips are generally parallcl to or steeper than the dip of
the orebody footwall at Nyankanga, Lone Cone and Geita Hill,
though in some areas of Geita Hill the orebody dip is steeper
than the bedding dip. Instability in the unweathered zone is
therefore expected to be structurally controlled. Bench scale
planar failure could occur on footwall slopes where
mineralisation dips more steeply than bedding. Single and
multi-bench instability on the hangingwall slopes could be due to
the failure of tetrahedral wedges. In addition, at Kukuluma and
Matandani, geometric conditions exist for potential toppling
instability in the unweathered rock mass.
Pit optimisation and design were carried out using Datamine
LG3 based on a gold price of $US325/oz. Table 4 shows a
summary of reserves as of January 2000.
Initial mine scheduling has been carried out and encompasses
, the following aims:
the development of the Nyankanga Stage I pit to provide
sufficient waste material suitable for construction purposes
(tailings dam, KOM pad, road construction).;
to expose high-grade ore in preparation for full processing by
April 2000.;
to defer development of other pits to focus early supervision
and training efforts and concentrate site security.;
accelerate material movement from 2001 to 2004 to gain
early access to the deeper, higher grade fresh mineralisation
of Nyankanga.; and
provide continuous feed from the satellite pits of Matandani
and Kukuluma (16 km to NE) to justify the introduction of
the higher unit operating cost road trains into the operation.
Mining begins and ends in Nyankanga over the life of the
project. The Nyankanga staged pits commence during the
pre-production period with the second pit, Lone Cone coming on
126 Coolurn. Old. 14
line in 2001 primarily due to early low strip ratio Idlowed by
Kukuluma and Geita Hill in 2002. This is followed by Matandani
the following year to maintain a steady ore production rate from
the satellite pits. The final cutback on Nyankanga which
represents the access into the deepest, high-grade section
commences in 2004.
Ore feed blends to the process plant vary throughout the
project life with higher than 80 per cent sulphide feed occurring
in 2001 and 2009 - 12, primarily from the deeper Nyankanga ore.
No high oxide feed years occur except for 2002 (76 per cent)
with the introduction of the oxides from Kukuluma into the
circuit.
DISCUSSION AND CONCLUSIONS
Mineralisation in the Geita greenstone belt is primarily
controlled by regional, NW trending shearing developed in a
brittle-ductile environment. At Kukuluma the NW shears form
the principal mineralised structure, whereas in the Geita trend the
deposits are located along NE and ENE subsidiary structures. In
both cases mincralised shears trend subparallel to stratigraphy.
Late-stage displacement on NW shears is probably minor since
orebodies do not appear to be significantly displaced.
BIF is the dominant host for mineralisation. Within the
structurally-controlled regime competency contrast between
lithologies is the most important factor affecting grade
distribution. This is seen to maximum effect at Nyankanga where
the ratio of BIF to microdiorite is optimal and has given rise to
widespread high-grade mineralisation.
Intermediate intrusives in the Geita trend are thought to be
derived from a common source, possibly centred on a
diorite-granodiorite body occurring immediately to the south of
Nyankanga. Intrusives of similar composition are also observed
at Kukuluma and Kidge 8 (Figure 2). Although porphyry style
alteration and mineralisation is seen at Nyankanga, the authors
feel that this is distinct from, and has been overprinted by. the
main shear controlled mineralisation.
The use of mineable polygons in estimating the recovery of
resource blocks is suited to the Geita and Kukuluma trends
where parts of the resource occur in thin (<3 m) hanging wall
splays, which may not be amenable to the mining equipment
optimal for the bulk of the orebody. By using mineable polygons
a more practical assessment of minable reserves has been
possi ble.
In the last five years more than 14 Moz of contained gold has
been discovered in the Geita Greenstone belt, making it one of
the most prospective gold targets in the world. The reason for the
large number of gold occurrences is thought to be the thickening
of the belt as a result of folding, coincident with widespread NW
shearing. Work to-date in Geita represents first phase exploration
in an area where 60 per cent of the belt lies below transported
cover and the potential exists for further discoveries that will
continue to expand the Geita Project.
- 17 May 2000 4th International Mining Geology Conference
 THE GEITA AND KUKULUMA MINEKALISED TRENDS

REFERENCES Borg. G, 1994. The Geita gold deposit in NW Tanzania - Geology, ore
petrology. geochemistry and timing of events, Geol Jb, D100. pp
Ashanti. 1999. Geology of the Geita Project. Ashanti Goldfields 545-59s.
Tanzania. (unpublished internal report). Schandl, E. 1999. Petrography of the Nyankanga and Geita Deposits.
Rarth. H. 1990. Explanatory notes on the 1:SOOOOO provisional Internal Consultants Report.
geological map of the Lake Victoria Goldfields, Tanzania.
Hundesanstalt fur Geowissenschaften und Rohstoffe und
Geologische Landesamter in der Hundesrepuhlik Ikutschland
(RGR). Gcologisches Jahrbuch Reihe 8,Heft 72.

4th International Mining Geology Conference Coolurn, Old. 14 - 17 May 2000 127
128 Coolurn, Old. 14 - 17 May 2000 4th International Mining Geology Conference
Kunwarara Magnesite Deposit
S Wilcock'
ABSTRACT
l h e Kunwarara magnesite deposit is the largest known magnesite
(MgCO,) deposit in Australia. It is located under black soil plains to the
north of Rockhampton in Queensland. The deposit consists of magnesite
nodules set in a fine-grained sandstone. siltstone and mudstone matrix.
The magnesite is derived from weathering of serpcntinite in adjacent hills
and transpon o f magnesium in solution to a TeniarylQuaternary river
system. The mignesium has come out of solution in the active river
system. and combined with atmospheric and biogenic CO1 to form
magnesite nodules. The magnesite can be very pure with certain varieties
u p to 98 per cent MgO (LO1 free). The deposit has been mined since
1991 and processcd into magnesia (MgO) which is sold into refractory.
agricultural and other markets. The geologist is an integral part of the
sinall mine technical team. The role of the geologist includes
characterisation of the ore through drilling and bulk sampling.
supervision of geological aspccts of mining and assistance in the
optintisation o f ore processing.
INTRODUCTION
The Kunwarara magnesite deposit is located adjacent to the
Bruce Highway, 70 km north-west of Rockhampton in
Queensland. The topography of the area consists of broad
black-soil plains about 20 m above sea level flanked by hills up
to 400 m elevation. The location of the deposit is shown on
Figure I .
,,o-,
I
,
Ftc; I - Location of Kunwarara magnesite deposit
I. Senior Mine Geologist. Queensland Magnesia (Operations) Pty Ltd,
PO Box 5798. Central Ouernsland Mail Centre Qld 4702.
4th International Mining Geology Conference Coolum. Qld. 14 - 17 May 2000
Magnesite occurrences have been known in the Kunwarara
district since the early-1900s. All of the early discoveries were of
vein magnesite in the ultramafic rocks in the hilly areas.
Small-scale mining occurred at a number of locations between
Kunwarara and Marlborough. 30 km north-west of Kunwarara.
These mines operated intermittently from the 1920s through to
the 1980s.
In 1985, Queensland Metals Corporation (QMC) discovered a
large deposit of magnesite hosted in fluvial sedimentary rocks
under the Kunwarara black-soil plains. The deposit can be traced
for about 60 km from near Yaamha to Broad Sound. QMC holds
exploration and mining titles over the central section of the
deposit. A subsidiary company of QMC, Queensland Magnesia
(Operations) Pty Ltd (QMAG), commenced mining in 1991 on
the KGl lease. To the end of 1999. 20.5 Mt of ore had been
mined.
Magnesite from the Kunwarara mine has been used by QMAG
for the production of deadburned and electrofused magnesia for
the making of refractory bricks. In addition calcined magnesia is
produced for use in agricultural. environmental and other
industrial applications. These products are sold to national and
international markets.
Future developments are planned based on the Kunwarara
magnesite orebody. The most advanced is that by the Australian
Magnesium Corporation Pty Ltd (QMC SO per cent. Normandy
SO per cent). They are proposing to build Australia's first
magnesium metal smelter. This project is currently being
assessed with a pilot plant operating in Gladstone. The plant uses
a new process, developed by QMC and CSIRO over the past
decade to produce magnesium metal at lower cost than
traditional techniques.
REGIONAL GEOLOGICAL SETTING
The magnesite deposits arc found in Late Tertiary (Post Eocene)
to Quaternary sediments deposited in a fluvial environment and
arc associated with Paleozoic ultramafic complexes. The
ultramafic complexes arc the source of the magnesium required
for deposit formation. The ultramafics are part of the
Marlborough terrane, a component of the northern New England
Fold Belt. The Marlborough terrane is an ophiolitic assemblage
that separates the Carboniferous Yarrol terrane from the
Devonian-Carboniferous Wandilla terrane. The exact mode of
formation of these basement rocks is still a matter of debate
(Leitch et a/.1994). Serpentinitcs are a common component of
the ultramafic assemblage and these arc the source of magnesium
for magnesite formation.
During the late Tertiary and Quaternary, a sinuous fluvial
system developed adjacent to the ultramafic complex and the
resulting sedimentary sequence has formed the host for the
magnesite deposits. Three semi-continuous deposits have been
recognised stretching from Yaamba (near the present day Fitzroy
River) through Kunwarara to Herbert Creek (adjacent to Broad
Sound), a distance of approximately 60 km.
DEPOSIT GEOLOGY
Sediment hosted magnesite deposits can be very large. The
Kunwarara deposit has an Inferred Resource of I .2 billion tonnes
with greater than five per cent (mass) magnesite content
(Queensland Metals Corporation. 1999).
129
 S WILCOCK

The magnesite has been derived from the weathering and

erosion of the adjacent ultramafic complex during the
Tertiary/Quaternary. The ultramafic complex is. in some places.
immediately adjacent to. or underlying. the magnesite deposit. Om I IBlack clay overburden
All of the magnesite deposits are within I O km of the
ultramafics. The ultramafics are characterised by hilly landforms
rising 40 to 400 m above the surrounding plains. The ultramafic
rocks have provided the source of magnesium rich fluids, which Sm
have been transported into the palco-fluvial system where the Magnesite nodules
deposits are now found.
The deposits are located in topographically low arcas, and (D

there is no outcrop.
I Om Includes clay filled
The Tertiary/Quaternary fluvial sequence is up to 40 m thick.
It generally fines upwards from gravel and coarse unconsolidated
sand at the base through finer grained weakly cemented
sandstones to siltstone and mudstone. The magnesite orebodies
are found in the upper half of the sedimentary sequcnce. within 15m
the weakly cemented sandstone and siltstone. The sediments are
overlain by 1 to 4 m of black clay, which has been deposited by
periodic sheet flood events, which have continued to the present
day. Unconsolidated sand
2Om
No fossils have been found in the sediments, so thc only age
indication comes from the fact that they overlie Eocene oil shales
near Yaamba and may be partly overlapped by Holocene alluvial
sand deposits at Kunwarara.
Earlier depositional models for the host sediments indicated a 25m
Gravel
lacustrine depositional environment (Schmid, 1987; Queensland
Metals Corporation. 1992). Exposures in pit walls during mining
at Kunwarara and data from extensive exploration drilling have
shown higher energy sedimentary features than would be 30m
expected in a purcly lacustrine environment. These include
gravel bars, erosionally based sandy channel deposits. and also
clay filled abandoned channels. In addition, the sinuous nature of
the deposits indicates that a more likely depositional environment
is a low to moderate energy fluvial system. 35m
The magnesite orebody is found in the upper parts of the
sedimentary sequence and ranges in thickness from I to 26 m.
Ore thickness at the Kunwarara mine has averaged 12 m over the
40m
8 years of mining operations. A diagram of the typical orebody ! . . . . a * _ . . . + - I , . - . . . I Granite
intersection is shown on Figure 2. Magnesite content in the . . . .- . , -. - Basement
deposit varies from five to 90 per cent by mass (Queensland
Metals Corporation, 1992). Testwork during mining operations at
Kunwarara has shown an average magnesite content of around 35
per cent, by mass, in the areas which are suitable for mining.
FIG2 - Typical deposit cross-section
l‘hc orebody is eharacterised by discontinuous zones of high
quality magnesite, separated by arcas where the magnesite is less
well-developed.

Magnesite types
The magnesite itself is cryptocrystalline and pure white in colour.
Scanning electron microscope (SEM) studies show crystal sizes
ranging from I - I O microns. Inclusions include amorphous
silica, clays and iron and manganese oxides. The magnesite
occurs as distinctive concretionary nodules and as a stockwork of
veins and sheets. The nodules range in size from :I few
millimetres up to 60 cm. with cemented aggregates of nodules up
to I m across. A typical nodule is shown on Figure 3.
Magnesite texture ranges from hard, pure, porcellanous ‘bone’
type through to softer, less dense. porous and chalky types.
‘Bone’ magnesite has a conchoidal fracture and is
characterised by well-developed rounded nodules. The porous
and chalky types are more common as veins and sheets. AI1
nodules have a skin of amorphous silica, which forms a rough
crusty surface. In bone magnesite, the interior of the nodules can
be > 98.5 per cent MgO and < 0.5 per cent Si02 (all analyses are
loss on ignition (LOI) free basis). In the more porous types,
amorphous silica penetrates deeply into the nodules along cracks FIG3 - magnesite nodule in sandstone matrix.

, 130 Coolum. Old, 14 - 17 May 2000 4th International Mining Geology Conference
 KUNWARAKA MAGNESITE DEPOSIT

and around pores, leading to lower MgO and higher Si02
contents. In the upper parts of the orcbody, additional
silicification has occurred and the nodules may show deep
desiccation cracks and can be as high as three to four per cent
Si02.
Lime occurs in solid solution in magnesite. It ranges from one
per cent CaO to four per cent CaO in different parts of the
deposit. In a bulk sense the main source of lime in final products
is from the mineral dolomite (CaMg(C03)2) which ranges in
abundance from nil to I00 per cent of the carbonate assemblage.
Dolomite often occurs as separate nodules although intergrowths
with magnesite arc locally common. Dolomite nodules are
generally smaller and more irregularly shaped than magnesite
nodules. They also differ in that they are characteriscd by
inclusions of quartz grains. and have higher amounts of iron and
manganese oxides. As a result, dolomite has higher silica values
than magnesite (av ten per cent Si02) and higher A1203. Fe203
and MnO.
Dolomite is generally more abundant in the lower parts of the
ore zone and may form a pure dolomite layer (within host rocks)
at the base of the deposit.
Typical analyses of magnesite and dolomites are shown in
Table I .
TABLE 1 an adequate source of magnesium (Schmid, 1987). Chemically
Limited studies have been undertaken on the carbon and
oxygen isotopes of Kunwarara magnesite. Typical 81~ C P D B
values are -7.5 per mil. Typical &]@SMOW values are 31.5 per
mil. These values suggest the magnesite is derived from meteoric
water and a mixture of atmospheric and plant derived C 0 2
(Russell, M, 1999 Personal communication. July). Kunwarara
isotope values are comparable to those found in the Nevade,
Shilopaj and similar sediment hosted magnesite deposits in
Yugoslavia (Fallick, llich and Kussell. 1991). In the Yugoslav
deposits similar isotope values have been interpreted to reflect
the formation of magnesite from dissolution of magnesium from
serpentinite by gravity-driven circulating carbonated meteoric
waters, which precipitate as magnesite on pressure drop as C 0 2
escapes. Atmospheric and biogenic C 0 2 is also implicated in the
formation of these deposits.
A modem day analog for the Kunwarara type of deposit, albeit
in a lacustrine environment, has been documented at Salda Lake
in Turkey (Schmid. 1987). The lake is flanked by serpentinite
hills, which shed magnesium rich waters and particulate matter
into the lake. Magnesite is currently being deposited around the
lake shore and occurs in rubbly dunes up to IO m high.
Cryptocrystalline nodules and lumps of magnesium carbonate
and hydroxide are forming at the mud-water interface under the
influence of seasonally varying water levels. Field evidence
shows that magnesite crystallisation can occur very rapidly given
precipitated nodules from Salda Lake are very similar to

,_
7jpical mugtiesite atid dolomite atialyses, Kunwarara deposit.
-. - .- Kunwarara nodules.
i .-MgO>i-. S a % I-..CaO .70 AI2OJ . .-.% M
~ .- %. , FqOJ n&% In the Kunwarara deposit, the magnesite precipitated in situ
1 j x . 5 --., 0 : 4 , .e
:O.a44, 0.09 - - 0 . 0 8 very soon after the deposition of the host sediments. Evidence
2. .; I
9.5.7 ,-l.4L,i 2.5 !
I
0.12 I
-I --- I
0.12 0.09 1 for this is shown in mine pit exposures where channels have
eroded nodule aggregates and formed pebbly channel-floor
II-..7 ’
-94 .i- 2.4s 3.03 0.22 0.24 0.09
I
.
.t deposits (Wilcock, 1998). In situ precipitation continued above
.4
49.2!, 15.3 I 33.6!.1.351 0.4770 s
.. such minor hiatuses. It would appear that nodules and veins
continued to develop for some time after sediment deposition.
I . ‘Bone’magnesite The original sedimentary structures are still visible in pit
2. ‘Hone’ and ‘porous’ magnesite exposures, but they are heavily disrupted and distorted by the
3. ‘Porous’magnesite growth of nodules and the penetration by veins.
4. Dolomite
The nodules of magnesite do not incorporate any of the host
sediments. Field observations show that they displace the host
Variations in the host rock are related to variations in quality of sediments (Figure 3). Similar disruption of host sediments is
magnesite. At Kunwarara, bone magnesite is more abundant in noted in the Yugoslav deposits.
red-brown fine-grained sandstone, whereas more porous types of Conversely, dolomite appears to be at least partly replacive.
magnesite are more common in the grey siltstone facies. It would Field observations show gradations from tine sandstone into
appear that this distribution is related to higher permeability in dolomite, and SEM studies show abundant quartz grains in
sandstone allowing greater circulation of magnesium rich fluids. dolomite. This indicates that dolomite has replaced the clay
cement in sandstonc.
DEPOSIT FORMATION A diagram of the accepted model of the formation of the
Kunwarara deposit is shown on Figure 4.
The close spatial association of the magnesite deposits with a
large ultramafic complex gives an obvious pointer to the source Magnesite nodule precipitation (in siru) is very common in the
of the magnesium. No studies of magnesium dissolution from the vicinity of ultramafic complexes. In the Kunwarara region
Marlborough terrane serpentinite have been undertaken, but magnesite nodules have been observed in numerous locations in
studies elsewhere give valuable pointers as to the likely the weathering profiles above diverse rock types within a few
mechanisms operating for this class of deposit (Zachmann and kilometres of serpentinite bodies. This indicates that magnesite
Johannes, 1989; Fallick, llich and Kussell, 1991). Weathering of will readily precipitate out of solution given a suitable trigger
the ultramafic complex during the late Tertiary-Quatemary has mechanism.
mobilised magnesium in ground waters. Within the serpentinites. veins of magnesite are locally very
Cryptocrystalline magnesite formation has been linked with common. This type of magnesite is related to weathering of
selective dissolution of magnesium from serpentinite under the serpentinite and deposition of magnesite through interaction of
influence of waters rich in atmospheric and biogenic C02. weathering products with descending meteoric wafers loaded
Hydratcd magnesium carbonates precipitate in suitable with atmospheric and biogenic C 0 2 (Zachmann and Johanncs.
environments given an appropriate trigger mechanism, such as 1989; Fallick, llich and Russell, 1991).
mixing with high pH waters or by concentration through cyclic The Thuddungra magnesite deposit near Young in New South
evaporation. The hydrated magnesium carbonates are Wales has many features in common with the Kunwarara deposit
transformed to magnesite by diagenetic processes (Zachmann (Diemar, 1998).
and Johannes. 1989).

4th International Mining Geology Conference Coolurn, Qld, 1 4 . 1 7 May 2000 131
 S WILCOCK
I
I
i
I
I
I
I
I
I
I
I
I
I
I
i
I I
Fic; 4 - Model of formation of Kunwarara magnesite deposit
MINE GEOLOGICAL METHODS
Mining and processing techniques
The mine is open cut, with a 100 tonne backhoe excavator and 50
tonne capacity trucks used for ore mining and haulage. Scrapers
arc used to remove overburden clays and soil. The host sediments
are only weakly cemented but do form a competent rock mass,
which causes few geotechnical problems during mining. No
blasting is required. However the magnesite nodules themselves
are extremely hard. All metal surfaces in the mining equipment
and the process plant have to be wear protected.
Current production of ore is around 3 Mtpa, for the production
of about 400 000 t of magnesite. Primary beneficiation of the
magnesite takes place at the mine site. This involves crushing,
scrubbing, screening, heavy media separation and optical sorting
I of different parts of the orebody. Judgement is required on the
to separate the magnesite from the sedimentary host rocks and
dolomite. Conversion of the magnesite to various grades of
calcined, deadburned and electrofused magnesia occurs at a large
processing plant on the outskirts of Kockhampton.
Role of the geologist
The geologist at the Qmag mine is required to provide geological
interpretations to allow efficient day-to-day operation as well as
resource estimates decades into the future. Interpretation of
geological data must be integrated into the mine planning and
mineral processing areas of the operation.
The geology of the deposit is complex, with rapid vertical and
lateral variations in magnesite quality and abundance. These
variations are usually related to different niches in the primary
sedimentological environment. Geological techniques used to
assess the orebody have been developed to quantify this
variability. This involves rotary air blast (KAB) drilling on a
I
reducing grid to differentiate mineable areas. In early stages of
exploration the drill holes are collared on 200 or 400 m centres.
At this level of detail, Inferred Resources can be estimated. The
grid is gradually closed in areas that have mining potential to a
, minimum spacing of 25 m. At this level, Measured Resources
and Proved Reserves can be estimated.
132 Coolurn. Qld. 14
Large numbers of drill holes are required to assess the ore
zones. Five thousand RAB holes have been drilled in the current
opcrating mining lease, which covers an area of 5.50 ha, to fully
assess its potential. The drilling technique used is rapid and
relatively inexpensive.
The RAB drilling technique produces rock chips up to 25 mm
across. Magnesite content is determined using image analysis of
photographs of raw drill samples. This technique was developed
by Qmag using advances in digital camera technology and image
analysis software. It is used to efficiently quantify the amount of
magnesite relative to waste materials in the drill samples.
Magnesite quality is determined by chemical analysis of
magnesite separated from drill samples. Specific chemical
analyses are for MgO, 5 0 2 , CaO, Fe203, A1203 and MnO. The
magnesite content and chemical analysis data from drill holes
give a qualitative guide to the likely performancc characteristics
part of the geologist to determine which areas should be included
in reserves and subsequently mined.
Qmag magnesia products have tight specifications for all the
oxides listed above, but especially MgO, Si02 and CaO. One of
the main challenges is that not all magnesite in the mined ore is
of suitable quality to be considered final product. The overall
magnesite content of the orebody is about 35 per cent (by
volume), but the yield of final magnesite product from the mine
is about IS per cent. The magnesite that is mined, but not
accepted as Qmag product, usually fails because of high levels of
Si02 and/or CaO.
The processing plant at the mine upgrades the run of mine ore
using crushing, scrubbing, screening, heavy media separation
and optical ore sorting to extract magnesite of the required grade
from the ore. The behaviour of the ore through this complex
plant cannot be predicted from RAB drill chip samples, so
selective bulk sampling of the deposit has been undertaken.
These bulk samples have ranged from five to ten tonnes from one
metre diameter Calweld drill holes, to 40 OOO t pits. Ore from
smaller bulk samples is used in simulations of the processing
plant, and ore from larger pit samples is run through the plant as
full-scale production trials. The bulk samples provide a much
lower density of sample points than RAB drilling, but if carefully
sited using information from the RAB drilling campaigns, they
- 17 May 2000 4th International Mining Geology Conference

provide the information required to better predict final product
quality distributions from the processing plant and determine
which areas should be included in reserves.
Future planned projects, based on the magnesite resource, such
as the niagnesium metal smelter will use some of the lower grade
magnesite not currently suitable for Q m a g requirements. This
will lead to higher yields of magnesite from the deposit.
The mining engineer in consultation with the geologist plans
the mine pits. Pits normally contain about 0.5 Mt of ore. Grade
control in the pit is visually based. T h e white magnesite contrasts
strongly with the grey and red-brown host sediments, This allows
the digger operator to readily identify important features such as
wiiste zones within the ore, and the bottom of the ore zone. The
geologist provides guidance to the mining crews, based on
information from drilling.
Various geophysical techniques have been trialled, but nonc
have proven cost-effective relative to drilling. T h e technique with
the greatest potential is a high-resolution resistivity system. This
system could successfully differentiate significant magnesite
development from lower quality areas by focussing on the
resistivity contrast between magnesite and the fluvial sediments.
Other techniques which have been trialed, but were not
successful included ground-penetrating radar and down-hole
geophysical methods including gamma, neutron, resistivity and
sonic.
CONCLUSION
Sediment hosted cryptocrystallinc magnesite deposits have only
gained world scale importance as a source of magnesite since the
discovery of the Kunwarara deposit in 1985.
T h e mode of formation of these deposits is broadly
understood, although the reasons for some localised, but
practically important features such as dolomite distribution
within the orebodies require further study.
T h e magnesite deposits will only form where an ultramafic
complex with common serpentinite is present to provide a source
of magnesium. Tertiary-Quaternary weathering of the ultramafics
produces magnesium rich ground waters that may precipitate
economically important deposits in permeable Tertiary-
Quaternary terrestrial sedimentary sequences.
Mine geological methods focus on locating high magnesite
content zones within the deposit. O n c e located these zones are
mined in a conventional open cut mine. The greatest challenge
for the geologist is predicting performance where not all
magnesite will be recovered to final product.
4th International Mining Geology Conference Coolum, Old. 14 - 17 May 2000
K UN WA R A R A MAGNESITE 1)EPO.S IT
ACKNOWLEDGEMENTS
T h e author wishes to thank the management of Queensland
Magnesia (Operations) Pty Ltd and Queensland Metals
Corporation Limited for permission to publish this papcr
REFERENCES
Anon. 1 0 3 . Major expansion at Thuddungra niagncsite mine, Minfri.
(Department of Mineral Resources: New South Wales) 38: 14-16.
Rurhan, B. 1990. Kunwarara magnesite deposit, in Geology of the
Minerd Deposifs of Austrirliu mid Pirpuir New Guineu (Ed: F E
Hughes). pp 1675-1677(The Australasian Institute of Mining and
Metallurgy: Melbourne).
Diemar, V A, 1998. Thuddungra magnesite deposits. in Geology of
Austrtrliim und Pupuu New Guineun Minerd Deposits (Eds: D A
Herkrnan and D H Mackenzie), pp 655-660 (The Australasian
Institute of Mining and Metallurgy: Melbourne).
Fallick. A E, Ilich M and Russell. M J. 1991.A stable isotope study of
the magnesite deposits associated with the alpine-type ultramafic
rocks of Yugoslavia. Econoniic Geology, 86:847-861.
Leitch, E C, Fergusson C L. Henderson, R A and Morand. V J. 1994.
Ophiolitic and metamorphic rocks in the Percy Isles and Shodwater
Bay region. New England Fold Helt, Central Queensland. Austrulrcrn
Journirl of Eurth Sciences, 4 I57 1-579.
Milburn, D and Wilcock, S. 1994.The Kunwarara magnesite deposit.
central Queensland. in 1’riiceeding.s Field Conference 94. Cupricnrn
Region. pp 99-IO7 (Geological Society of Australia: Rrishane).
Milhurn. D and Wileock. S. 1998. Kunwarara magnesite deposit, in
Geoloixy of Au.srruliun trnd Puprtu New Guineun Minerul Depoxifs
(Eds: D A Berkman and D H Mackenzie) pp 815-818 (The
Australasian Institute of Mining and Metallurgy: Melbourne).
Queensland Metals Corporation Limited. 1992, Annual Report.
Queensland Metals Corporation Limited. 1999,Annual Report.
Jones, M R. 1995. Magnesite in review. Queenslund Government Mininji
Journirl, April 1995, pp 11-20(Department of Minerals and Energy:
Queensland).
Schmid, I H. 1987.Turkey’s Salda Lake: A genetic model for Australia’s
newly discovered magnesite deposits. Inditstriul M i n e m k ,
239:19-31.
Wilcock, S. 1998. Sediment Hosted Magnesite Deposits. AGSO Journul
of Ausfrulian GeoloRy and Geophysics, 17(4):247-25I.
Zachmann. D W and Johannes. W, 1989.Cryptocrystalline magnesite,
Monoigruph Series on Minerul Deposits: M q n e r i r e . 28: 15-28.
(Gabruder Rorntraeger: Germany).
133
134 Coolurn. Old. 14 - 17 May 2000 4th International Mining Geology Conference
Current Geological Understanding of Telfer Gold Mine
G R Howard’, T Hansen’, C Moore’, P J Moffitt’, R J Inglis2, R D Carlson3, I Kirchner’,
D Coupland4,S Leary’ and A Tomsett3

ABSTRACT In seeking to sustain the operation well into the 21” century a
dedicated team of geologists, engineers and metallurgists has
Telfer Gold Mine combines a world-class gold and copper resource and
identified additional gold and copper mineralisation from the
longevity of operation as a major gold and copper producer.
open pit and underground. T h e project to evaluate this
Telfer Gold Mine ha$ undergone a series of transformations since
mineralisation is termed the Telfer Extension (TEX)
mining commenced as a high-grade narrow-vein oxide open pit operation
in 1977. In 19x6. the open pit operation converted from a narrow-vein, pre-feasibility study. This paper summarises the geological
high-grade operation. to a low-grade high-volume oxide mining component of the TEX pre-feasibility study.
operation utilisiiig dump leach processing technology. Mechanised
underground mining of the high-grade narrow-veins commenced in 1990. Location
Total recovered gold production between 1977 to 1099 has totalled 5.7
million ounces. T h e Tclfcr Gold Mine is located in one of the most remote areas
The Telfer Extension Project consists of two pre-feasihility studies. the of Western Australia, some 485 k m by road south-east of Port
Surface Extension Project (SEP) and the I-Series P r o p t (1st‘) The Hedland or 680 k m north-east of Newman. within the Great
combined studies represent one of the more significant resource Sandy Desert (Figure I ) . T h e mine falls within the boundaries of
evaluations undertaken i n the gold industry in recent times. the East Pilbara Shire, an area covering 386000 km2 that
Geological activities for the SEP pre-feasibility study have included contains less than one percent of Western Australia’s population.
the drill definition of 3 large low-grade resource within an area of T h e climate of the region is characterised by hot summers
25 km2. The surface drilling program has completed IS 000 metres of
(January average daily temperatures exceed 40°C) and warm
HQ3 dianiond drilling and over 30 000 metres of KC between last quaner
of 1998 and late-1999. winters (July average daily temperatures exceed IOOC). Rainfall
The ISP pre-feasibility study is currently evaluating the resource is strongly seasonal, falling between December and March and is
potential of both a high-grade low-volume and a lower grade bulk mining usually associated with remnant cyclones and thunderstorm
scenario. 800 m to 1200 rn below the surface of Main Dome. 1.5 000 activity. Annual evaporation is 4160 mm.
metres of underground diamond drilling have been completed between
last quarter of 1998 and August 1999 as part of this study.
Systems and cultures have been developed to maximise safety, monitor
the quality assurance/quality control (QAIQC) on all aspects of the
operation, and minimise impact on the environment. All data are stored
in database systems, specifically designed for Telfer operations.
3D geostatistical resource estimation using ordinary kriging has been I9
carried out for over 220 geological domains within the 25 km’ of
inineralised system. Non-linew geostntistical techniques are being
investigated as part of the pre-feasibility study.

INTRODUCTION

Summary
T h e Telfer Gold Mine, a wholly owned and operated subsidiary
of Newcrest Mining Limited, is a world-class gold and copper
resource that has been mined continuously since 1977. It has
undergone a series of transformations from a high-grade
narrow-vein oxide open pit operation in 1977 to the integrated
open pit, d u m p leach and underground operation that it is today.
Total gold production from the narrow-vein underground and
oxide open pit operations between 1977 and 1999 is more than
5.7 million ounces.
F a I - Regional locality map.
The Telfer Gold Mine is undergoing a renaissance with respect
to understanding the geological controls o n mineralisation as
well as the potential application of alternative metallurgical Discovery
process routes.
T h e Bureau of Mineral Resources (Australian Geological Survey
~~~ ~

Organisation) first geologically mapped the Telfer district in

I. MAuslMM, Newcrest Mining Ltd, Telfer Gold Mine. PO Box 6380. 1959. however during the mapping no gold or copper
East Perth WA 6004. mineralisation was identified,
2 . GAuslMM, Newcrest Mining Ltd, Telfer Gold Mine. PO Box 6380. Prospectors and exploration companies targeted the Telfer
East Penh WA 6004. district in the late-1960s and early-1970s as a copper province.
In 1971. Day Dawn Minerals NL undertook a regional
3. Newcrest Mining Ltd, Telfer Gold Mine, PO Box 6380. East Perth
WA 6004. sampling program in the district under the direction of R
Thompson. Anomalous copper and gold values were returned
4. MAuslMM. MMICA. Geologik Solutions. PO Box 73, Mosman from gossanous outcrops that were sampled in Main Dome,
Park WA 60 12. (Tyrwhitt. 1995).

4th International Mining Geology Conference Coolum. Old, 14 - 17 May 2000 135
 G R HOWARD et crl

I Summary of Telfer Gold Mines development history maintained at 2 and I Moz respcctively in the early part of
Telfer’s mine life (Chamberlain. 1990).
An intensive exploration and resource drilling program was
By the early-1980s. reserves were nearing exhaustion and an
undertaken by Newmont Pty Ltd during the period 1972 to 1975.
This program defined an open pit reserve of 3.8 Mt @ 9.6 g/t Au accelerated exploration program commenced in Main Dome and
West Dome (Figure 2). This program increased the reserves to
containing in excess of I Moz (Turner, 1980). Following a
2.5 Moz and resources to 5 Moz by the end of the 1980s. The
fcasibility study, Newmont brought BHP into the project and
increase in ounces was at the expense of gold grade which
mining commenced during I975 at Main Dome and reached full
dropped from 10 g/t to 2 dt (Chamberlain. 1990).
production of 0.5 Mtpa in 1977. Kesources and reserves were

111451763

R(i 2 - Telfer - Main and West Dome plan.

136 Coolurn. Old, 14 - 17 May 2000 4th International Mining Geology Conference
 CURRENT GEOLOGICAL UNDERSTANDING OF TELFER GOLD MINE
Extensive testwork was conducted during the early-1980s on
heap and dump leach technology. These processes were weighed
against the alternative of expanding the milling operation. The
latter option was chosen and in 1985 Telfer Gold Mine made the
transition from a low-volume, high-grade operation to a
high-volume. low-grade operation by expanding the mill to 1.5
Mtpa. Resource delinition drilling during the late 1980s defined
additional resources of submill-grade material ( I .2 g/t Au). This
increase led to further extensive metallurgical testwork on the
feasibility of establishing a dump leach operation. Commercial
dump leach treatment commenced in 1988, with an initial
processing rate of 4 Mtpa. This was expanded to 17 Mtpa during
1996.
As the pits deepened. the ore gradually changed from oxide to
supergene-sulphide material. This change was accompanied by
an increase i n the content of cyanide soluble copper minerals.
Consequently the current open pit resources are process
constrained.
In 1980 a sulphide flotation circuit was established to process
Middle Vale Reef (MVR) supergene-sulphide ore. initially from
open pit sources and in 1990, from underground. This treatment
circuit was modified to its current configuration in 1996 to treat
mainly sulphide ore from the underground MI0 and MI2 reefs.
Exploration programs during the 1090s successfully delineated
additional reefs on the eastern flank of Main Dome. These reefs.
which include the M10, MI2 and MSO reefs are currently being
mined using narrow-vein underground mining methods. Ongoing
resource assessment is being undertaken on the M20, M30, M35
and M40 reefs. In addition, decline access is currently bcing
established to the 130 reef system. This high-grade mineralised
system lying 1000 m below the surface was discovered in 1992.
PREVIOUS GEOLOGICAL MODELS
The Paterson Province regional geology and lithology is
described in Wells (1954), Blockley (1979). Turner (1982) and
Hill ( 1989).
The tectonic setting of the Paterson Province is described in
Williams and Myers (1990) and by Etheridge el a1 (1987). An
interpretation of the structural geology of Telfer is compiled i n
Clewson (1006).
Early genetic models for Tclfer mineralisation invoked
syngenetic-exhalative processes (Tyrwhitt 1979. 1985; Turner,
1982). Koylc (1985) proposed a variation of this with the MVR
being formed as an evaporative horizon in a sedimentary basin.
The evaporite horizon was subsequently replaced by
quartz-sulphide assemblages.
Exposures of sulphide mineralisation in deep exploration
drilling and open pitlunderground headings resulted in the
development of the epigenetic replacement models presented in
Levet (1986) and Dimo (1990). Goellnicht (1987, 1992)
proposed that mineralisation was derived dominantly from
magmatic fluid sources. This is in contrast to the interpretation of
Hall and Berry (1989) and Rowins (1994) which suggests that
granites acted as heat sources to circulate hydrothermal fluids
through the sedimentary sequence. Detailed mapping of the M I 0
- M I2 reef system has changed the focus of the genetic models
from the replacement of fine grained siltstone units to
mineralisation being structurally controlled (Inglis, 1995).
REGIONAL GEOLOGY
The Telfer Gold Mine occurs within weak to moderately
deformed. low-grade metasedimentary rocks that form part of the
Neoproterozoic Yeneena Group in the Paterson Province (Chin
and Hickman, 1977). The Yeneena Group unconformably
overlays the intensely deformed Mesoproterozoic Rudall
Complex (Williams and Myers, 1990). A veneer of Neopaleozoic
to Holocene sediments forms the cover rocks in the Telfer
district.
4th International Mining Geology Conference Coolum, Old. 14 - 17 May 2000
Granitoid intrusives make up approximately 20 per cent of the
Telfer district (Goellnicht, 1992). with the main plutons being the
MI Crofton Granite Complex. the Wilkie Granite, the Ikserts
Revenge Granite, the Minyari Granite Complex and the
O’Callaghans Granite.
MINE GEOLOGY
The stratigraphy and lithology of the Telfer Formation is
described in Dimo (1990). Since 1990 there has been
considerable progress in the understanding of the lithology and
controls on mineralisation in the Malu Quartzite Member and the
lsdell Formation. These units form the local mine stratigraphy
below the Telfer Formation (Figure 3). and focus discussion in
this chapter.
Malu Quartzite Member stratigraphy
The Malu Quartzite Member (MOM) is conformably overlain by
the Telfer Formation. The MQM is subdivided locally into three
main stratigraphic units: the Uppcr Malu Member (UMM), the
Upper Limey Unit (ULU) and the Lower Malu Member (LMM)
(Figure 3).
Upper Malu Member
The UMM is conformably overlain by the Telfer Formation
(TFM). The UMM sediments are similar in lithology to the
LMM. The UMM hosts the M10, M12, M20, M28, M30, M35
and M38 Reefs. The ‘Tiger Beds’, a 40 cm package of sheared
and laminated sandstone and siltstone between the M I O and
M 12, provide a useful stratigraphic marker for distinguishing
between the MI0 and MI2 Reefs (Inglis, 1995).
Upper Limey Unit
The ULU is a light grey. fine to coarse-grained, calcareous.
altered sandstone unit. Sand grains are dominantly angular to
rounded clastic quartz grains, accompanied by muscovite flakes
with interstitial micritic dolomite and calcite. Internal fabric
displays a penetrative schistosity, with shear fabrics up to
mylonitic levels. Both bedding and veins can be folded and
boudinaged. The average thickness of the ULU is 0.4 m. The
ULU hosts the M40 Reef.
Lower Malu Member
The LMM is conformably overlain by the ULU and overlies the
lsdell Formation. The LMM is a sequence of very fine to coarse
grained interbedded quartz sandstone and argillaceous siltstone.
Quartz sandstone units are commonly greater than ten metres
thick with siltstone units typically thinly banded or laminated
and less than a few metres thick. Individual sandstone beds are
commonly massive but can display sedimentary features such as
cross bedding, graded bedding and flame structures. The LMM
hosts the M45, M50. MSS, M60, M65, M67 and M70 Keefs.
Isdell Formation stratigraphy
The lsdell Formation (IDF) is the lowest unit of the Upper
Yeneena Group that occurs within the mine sequence.
The IDF is comprised of a sequence of very fine to
coarse-grained interbedded quartz sandstone and siltstone beds
with varying amounts of dolomite and carbonaceous material.
The ratio of sandstone to siltstone is 3: 1.
The IDF is subdivided into three main stratigraphic units: the
Upper lsdell Member (UIM), the Lower Limey Unit (LLU) and
the Lower Isdell Member (LIM) (Figure 3).
137
 G K HOWARD o r til

UNITS ' MINERALISATION

Puntapunta
Formation
Camp Sandstone Bot Flat
Stockwork
Outer Siltstone
Member Pit 11
Stockwork
Breccia
Leader Hills
Telfer Style Veins
Formation I ldA/E Re@ (8 in total)
620m Rim Sandstone \
uvs Rim Reef
Median Sundstone /
-Pods 1-3

MVS
Footwall Sandstone
Malu
Quartzite
615m
Upper
Limey Unit

Lower
Limey Unit
-
-
-
r
HW Reefs (8)
I30 ISP
, ,
. FW ReeJY (3)
Isdell I30 Stockwork
Formation Sandstone I30 Stockwork

-- 500m Unknown

FIG 3 - Mine WZI stratigraphic column

138 Coolum. Old, 14 - 17 May 2000 4th International Mining Geology Conference
 CURRENT GEOLOGICAL UNDERSTANDING OF TELFER GOLD MINE
~~ ~ ~
FIG4 - Main Dome - 130 Project cross-section I I 325 N.
Upper Isdell Member
The Upper Isdell Member (UIM) is conformably overlain by the
Malu Quartzite Member and overlies the Lower Limey Unit. The
average thickness of the UIM is 280 m and it hosts the
I30 Quartz Reef and eight associated hangingwall reef structures
(A10, AlS. A20, A22, A25, A30, A35, A40) (Figure 4). The
hangingwall reefs vary in thickness from 5 em to 3 m and occur
within 50 m of the 130 Quartz Reef.
The. hangingwall Black Silt (BZ) is the lowest bed within the
UIM. It is a 2 m to S m thick dark grey or black laminated and
carbonate spotted, carbonaceous siltstone which directly overlies
the LLU and hosts the 130 Quartz Reef.
130 Quartz Reef
The 130 Quartz Reef is a massive stratabound
quartz-carbonate-sulphide vein that occurs approximately 900 m
to IO00 m beneath the surface at the contact of the UIM and the
LLU. Drilling has delineated the 130 Quartz Reef over an area of
875 m (north-south) by 160 m (east-west) in the south-east
corner of Main Dome.
The geometry of the 130 Quartz Reef is controlled by the
intersection of the 130 monocline fold structure, a north-south
trending reverse fault and a near vertical north-east trending fault
corridor. The quartz reef has a maximum true thickness of I O m
in the hinge of the 130 Monocline, and reduces to a true thickness
of approximately 0.5 m on the flanks of the fold structure
(Figure 4).
The 130 Quartz Reef mineralisation is characterised by a
gangue consisting of quartz, grey, white and pink dolomite;
calcite and rare siderite. The dominant sulphide minerals are
4th International Mining Geology Conference Coolum, Qld. 14 - 17 May 2000
pyrite and chalcopyrite. The 130 Quartz Reef also contains trace
amounts of bornite, covellite, galena, stibnite, scheelite,
chalcocite and rare ielluride minerals. Visible gold is commonly
logged in the diamond core.
Lower Limey Unit
The Lower Limey Unit (LLU) conformably overlies the LIM.
The LLU is a light grey, fine to coarse-grained carbonate altered
sandstone unit. Sand grains are dominantly angular to rounded
clastic quartz grains, accompanied by muscovite flakes with
interstitial micritic dolomite and calcite. The unit varies from
massive to bedded with occasional thin dark silty laminations.
Internal fabric displays a penetrative schistosity, with a shear
fabric reminiscent of a mylonite. Both bedding and veins can
display folding and boudinage. The average true thickness of the
LLU is 9 m but it can vary between 1 m and 22 m in thickness.
In places the LLU contains intense veining concordant and
discordant to bedding.
Lower Isdell Member
The Lower Isdell Member (LIM) is the deepest stratigraphic unit
intersected by mine based drilling programs.
Interpretation of diamond drill holes has identified four
concordant quartz-carbonate-sulphide veins (reefs) in the LlM.
These arc named R IO, B 15, R20 and B30. The B 10 reef has an
average true thickness of 0.2 m and is hosted by a 2 m to 3 m
thick carbonaceous silt bed. This reef occurs 20 m to 25 m below
the LLU and has been traced 400 rn along strike along the
eastern limb of the fold.
139
I G R HOWARD et (11
Footwall reefs are not ~ v e l o p e din the hinge of the fold. The
deepest reef intersected to-date is the H30. This occurs 65 m
stratigraphically below the LLU Lower Limey Unit.
TELFER EXTENSION PROJECT
PRE-FEASIBILITY STUDY
I n 1908. Newcrest Mining Limited Board approval was given to
undertake the evaluation of significant gold and copper
mineralisation below the current open pits at Telfer. These
collectively form the basis of the Telfer Extension (TEX) Project.
The TEX Project consists of the Surface Extension Projects
(SEP) and the I Series Project (ISP). The SEP is evaluating the
potential for dceper open pit gold and copper mining, whilst the
ISP is evaluating the economic potential of the 130 Quartz Reef
and associated narrow-vein hanging wall reef structures,
approximately 1000 m below the surface in the south-cast comer
of Main Dome (Figure 3).
Surface Extension Project
The primary gcological objectives for the SEP project include:
complete drilling programs in Main Dome and West Dome to
confirm the potential for a bulk open pit minable gold and
copper resource;
estimate gold, copper transitional (cyanide soluble copper)
and sulphide resources for Main Dome and West Dome; and
co-development of gcotechnical. hydrological. acid mine
drainage (AMI)) and metallurgical models for the project.
10850E
'\
Rci 5 - Main Dome - SEP Project cross-section 1 1 050 N.
140 Coolum. Old. 14
The SEP pre-feasibility study was estimated io takc IS months
to complete and commenced in late- 1998.
The justification for the Pre-feasibility Study was the
favourable SEP Conceptual Study (Thompson e[ al, 1908) which
focussed on the south-east corner of Main Dome. The conceptual
study indicated that there was potential for a resourcc; of at least
130 MI, based on the first generation Main Dome 1 ( M D I ) and
West Dome 1 (WDI ) resource estimates. completed in December
1996.
MDI and WDI were the first resource cstimatcs undertaken at
Telfer that incorporated all of the drilling to 300 m below the
surface in two seamless models. Prior to MDl and WDI there I
were 22 separate resource models and these were not optimal for ,
evaluating the economic potential of the Telfer inineralised
system. I
Drilling I
A total of 30 OOO m of reverse circulation drilling and 15 000 m
of HQ3 or HQ3.68-3 diamond drilling was completed by
November 1999. The drilling programs focussed on testing the
south-east corner of Main Dome (Figure 2 and 5 ) with
reconnaissance drilling programs in Pit 9 and 10 i n West Dome.
Drill hole spacing has averaged 50 m x SO m.
SEP Resource estimation
Five model updates were completed as part of the SEP
Prc-feasibility Study. These included three estimates covering
Main Dome (MD1.2. MD1.5. MD2) and two in West Dome
>
1105oE 112WE
/
/ C
""'
/
/
/
/
/
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- 17 May 2000 4th International Mining Geology Conference
 CURRENT GEOLOGICAL UNDERSTANDING OF TELFER GOLD MINE
(WD1.S and WD2) WD1.S and MD1.2 were interim estimates
using Inverse Distance (ID) interpolation techniques to estimate
the distributions of gold, copper and cyanide soluble copper.
MD2 and WD2 are ordinary krigcd estimates and as such form
the basis for the Telfer June 1999 Mineral Kesource statement.
The MD2 resource estimate encompasses an area of 3.9 km by
I 9 km and includes all material from surface to the M3S reef
structure, approximately 0.5 km below the surface. The WD2
resource estimate covers an area of 3.3 km by 1.5 km and
includes all material from surface to 0.4 km below the surface.
The primary objectives for developing MD2 and WD2 were to:
utilisr linear geostatistic techniques such as ordinary kriging
to compare with ID techniques and to minimisc conditional
bias and other effects;
update the models with additional drilling data and a revised
geological interpretation;
model the gold, copper, cyanide soluble copper and sulphur
distributions;
develop AMD models for the mine area; and
undertilke a study of the optimaldrill hole composite size and
drill hole spacing, for future Telfer resource estimations.
The MD2 estimate comprises 28 primary geological domains,
these include:
12 reef structures (E reefs. MVR, M10/M12, M20. M30 and
M35 reefs),
0 one M IO/M 12 stockwork vein domain,
0 one M 10/MI 2 link structure, and
0 one surface regolith domain.
The MD2 model is constrained by geological interpretations
based on cross-sections 25 m or SO m apart. All of the
lithological units are wireframed to provide geological control on
the distribution of mineralisation.
Copper and cyanide soluble copper distributions arc modelled
into three domains reflecting the copper depletion. supergene
enrichment and the primary hypogene distribution.
The model parent cell size (X=l2.5 m. Y=2S m and E 4 m),
uses approximately half the drill hole spacing in both the X and
Y directions. The Z direction reflects the 4 m bench height used
in the current open pit operation. Variography including kriging
neighbourhood analysis was used to determine kriging
parametres for each domain.
Kesource classification was conducted individually for each
element with the resources being classified based upon
geological confidence, interpretation, QNQC, number of
samples used and distance criteria.
Prior to release of the MD2 estimate a series of qualitative and
quantitative validation processes were applied to the final grade
model. Table 1 outlines the resources delineated in the study.
Note: Figures are not additive due to rounding. Figures are based on a lower cut-off using a gold price of $A450/oz and copper $ A I .IO/lb. The resource
was constrained spatially by $A650 notional gold pit shells.
4th International Mining Geology Conference Coolum. Old, 14 - 17 May 2000
I Series Project
The geological objectives of the ISP pre-feasibility study
include:
0 to confirm the geometry. distribution and tenor of the gold
and copper mineralisation within the 130 Quartz Reef and
proximal reefs; and
0 to identify the overall geological potential of the deep
mineralised system.
The ISP pre-feasibility study was estimated to take IS months
for completion and commenced in late- 1998.
Historic drilling targeted the 130 Quartz Reef from the surface.
These drill holes are steeply dipping and generally intersected
the 130 Quartz Reef on the western flank of the monocline fold
structure, with occasional drill holes and associated wedge holes
intersecting the eastern flank of the 130 Quartz Reef.
A systematic geological evaluation was undertaken from
November 1997 to June 1998, with the aim of re-interpreting the
available geological data for the I30 Quartz Reef and associated
narrow-vein reef structures. In addition, several targeted diamond
holes were completed from the decline to confirm the apparent
thickening of the mineralisation associated with the monocline
fold and the eastern flank of the 130 Quartz Reef. Drilling
identified significant potential to expand the 1996 130 Quartz
Reef estimate in the hinge area, 11 was this study that
provided the justification to proceed with the ISP pre-feasibility
study.
Drilling
A total of 15 OOO m of HQ 3.68-3 and HQ3 diamond drilling was
completed over 12 months with the average intercept spacing
being SO m. The drill holes targeted the 130 Quartz Keef hinge
zone and eastern flank from underground drill cuddies at the base
of the decline approximately SO0 m above the target. Sample
preparation. assay and QA/QC procedures are the same as for the
SEP Pre-feasibility project (Carlson et (11, these proceedings).
ISP Resource estimation
Resource estimation of the I-Series reefs has been carried out
using Ordinary Kriging of a metal accumulation variable (the
product of grade, true width and density). Block grades are
back-calculated by dividing the kriged accumulation by krigcd
density and true width. It is important to use an accumulation
variable in the case of I-Series reefs so as to create an additive
variable suitable for kriging from unequal length samples of
varying density.
An 'unfolding' approach has bcen applied to modelling which
essentially unravels the complex overturned geometry onto a
plane. This method results in greatly improved variography
without compromising the spatial integrity of the model.
141
 G R HOWARD er (11
I Note: Figures are not additive due to rounding. Figures are based on a lower cut-off using a gold price of SA450/oz and copper $ A I . IO/lb. The resource
was constrained spatially by a $A650 notional gold shell.
Results of the ISP pre-feasibility study resourcc estimate were
relcased in September I999 and are summarised in Table 2.
CONCLUSIONS
The TEX projects have the potential to extend the mine life of
the Telfcr operation. Dedicated management of geological issues,
understanding of critical path elements in resource evaluation,
and continued support from the Newcrest Board have contributed
to identifying this world class gold and copper resource. The
development of gcologicaYstructural interpretations and
improved resource estimation techniques have led to a SO per
cent increase in gold and 70 per cent increase in copper resources
for the 1SP project since 1996. The Telfer Gold Mine has played
an important role in the development of the gold industry in
Western Australia, and it is hoped that it will continue to
contribute for a long timc to come.
ACKNOWLEDGEMENTS
This paper was compiled from thc dedicated efforts of many
geologists from the Telfcr Geology Department,'and is published
with the permission of the CEO of Newcrest Mining Limited.
REFERENCES
Blockley, J G and De la Hunty, L E, 1975. Paterson Province, in Geology
f!f Western Aurtruliu. Geological Survey of Western Australia.
Memoir 2. pp 109-127.
Carlson, R D. Howard, G R and Back. G. 2000. Systems and Protocols of
Geological Information Management at Telfer Gold Mine. Western
Australia, in Proceedings 4Ih Internurionul Mining Geology
Conference (The Australasian Institute of Mining and Metallurgy:
Melbourne).
Chamberlain. C C. 1990. Telfer - A Case Study of Transition at
Macquarie Bank Gold Conference. Sydney.
Chin, R and Hickman, A H, 1977. Proterozoic geology of the Paterson
Range. WA. 1:250 OOO Sheet. Geological Survey of Western
Australia. Record 1977/1 I (unpublished).
Dime. G, 1990. Telfer gold deposits. in Geology ofrhe Mineral Deposits
of Austruliu und Puputr New Guinea (FA:F E Hughes) pp 643-691
(The Australasian Institute of Mining and Metallurgy: Melbourne).
Etheridge, M A, Hutland, R W R and Wyborn, L A I. 1987. Orogenesis
and tectonic processes in the FArly to Middle Proterozoic of northern
Australia,Amer(;eoiphy.s Union Geodynum Ser; 17:131-147.
142 Coolum. Old, 14 - 17 May 2000
Goellnicht, N M, 1987. Constraints on the Timing and Source of Gold
Mineralisation at Main Dome. Telfer, Western Australia. RSc (Hons)
thesis (unpublished). The University of Western Australia.
Goellnicht. N M, 1992. Late Proterozoic Fractionated Granites and their
Role in the Genesis of Gold and Base-Metal Mineralisation in the
Telfer District, Western Australia. PhD Thesis(unpublishet1) The
University of Western Australia, 132 p.
Hall. D H and Berry, M, 1989. A discussion of the Telfer exploration
model. Internal Newmont Australia Pty Ltd. Report (unpublished) 7
P.
Hewson. S A J. 1996. A Structural Examination of the Telfer
Gold-Copper Deposit and Surrounding Region, northwest Western
Australia: The Role of Polyphase Orogenic Deformation in
Ore-deposit Development and Implications for Exploration.
Hill, A P, 1989. Structure of West Dome. Telfer, Western Australia and
its significance to mineralisation and regional tectonics. BSc Hons
Thesis, University of Western Australia (unpublished) 63 p.
Inglis, R J, 1995. The paragenesis and structural evolution of thc M I 0
Reef, Telfer. Western Australia. BSc (Hons) thesis. University of
Tasmania (unpublished).
Levet, B K. 1986. Genesis of Telfer ore bodies - some alternatives.
Newmont Australia Ltd Rep (unpublished), 8 p.
Newmont Perth and Melbourne Staff. 1972. Report on Exploration of
Paterson Range Gold Prospect Western Australia. Telfcr internal
report.
Royle. D Z. 1985. Gold mineralisation at Telfer and its environment
within the Proterozoic Paterson Range Province. Newmont Australia
Ltd Rep (unpublished) 8 p.
Thompson, P, 1998. Telfer Gold Mine Sulphide Extension Project
Conceptual Study. Internal Newcrest Mining Limited Report.
Tumer, C C, 1982. The Telfer Gold Deposits. Western Australia,
stratigraphy, sedimentology and gold mineralisation of the
Proterozoic Yeneena Group, PhD thesis (unpublished) University of
New England, 296 p.
Tyrwhitt, D S. 1979. Stratabound old deposits of Proterozoic age at
Telfer, Western Australia. 85' Annual Convention. Northwest
Mining Association, Spokane, Washington (American Institute
Mining Engineering).
Tynvhitt, D S , 1985. Exploration, development. and geology of the Telfer
Gold Mine, Great Sandy Desert, Western Australia. in Prospecting in
Arid Areus. First Internalionul Conference, Rubor, Momcico. pp
I 1-19 (The Institution of Mining and Metallurgy: London).
Tynyhitt, D S. 1995. Desert Gold: The discovery and development of
Telfer (Louthean Publishing Ply Ltd: WA)
Williams, I R and Myers, J S , 1990. Paterson Orogen, in Geology und
Minerd Resources of Western Austruliu. Western Australian
Geological Survey. Memoir 3, pp 274-275.
4th International Mining Geology Conference
Geology and Structure of the Morning Star Mine, Mt Magnet, WA
R Mason', N Archibald*, D Holden', T Blyth3, S Huffadine3, R Bradey3, A Jones3 and
P Androvich3

ABSTRACT
The Morning Star mine is owned by Hill 50 Gold NL. Gold is hosted in
+
quartz-carbonate ? stibnite molybdenite veins that occur in a series of
deformed, altered and metamorphosed mafic volcanics with subordinate L
sediments and felsic intrusive rocks. The irregular gold distribution and
its relationship to structure and alteration intensity makes the definition Star Pir Outline,_-*..
.- ._I__,I / !
of stoping limits difficult. Understanding the structural evolution of the
orebodies and the contemporaneous and later structures that affect the
orebodies has been very useful in this context. This paper reports on a t- *
.I: A ''(

detailed mapping exercise (as part of a more extensive and on-going Axlal Surface ---
investigation) and the integration of this mapping with other geological
and grade control data in a 313 modelling environment to provide an
expanded hasis for stope dcsign. 78600 'It, Morning Star Felsic
Three types of mineralised zones can be discriminated based on the '.
morphology of the veins within. They are: 'It Morning Star Ore Bodies\
those associated with strongly folded, thick veins (approximately
I rn thick eg OS orebody);
those comprising planar, boudinaged and some folded veins which
consolidate to form tabular, steeply dipping bodies (eg 010 orebody);
and
zones containing the above vein types and thin. highly deformed
veins within zones of intensely foliated country rock that result in
localised, irregularly distributed high-grade gold zones (cg
02 orebody).
The inineralised zones associated with thick folded veins are typically
predictable over many tens of vertical metres. The second and third types
of ore zone is generally less predictable. Detailed mapping and structural
kinematic studies indicate all ore zone types are affected by progressive
deformation involving strong strain partitioning. It is interpreted that high
strain zones, recognisable by intense foliation development and highly
deformed veins, are the latest stage of a progressive deformation which
approximates bulk flattening.
Structural controls on mineralisation can be defined at two different
scales.
ii M! Magnet

I. Rexiontrl scale fokling has deformed a sequence of mafic volcanics
with interlayered sediments and felsic intrusives. Initial geometry
of felsic bodies relative to orientation of the primary lithological
layering and the bulk shortening direction is interpreted to be
critical for initiation and development of strongly dilatant zones
within this package of rocks, and
2. Local scale dilation is evidenced by development of several vein
sets whose range in orientations and opposed vergence
relationships suggest a pre-folding origin comprising hoth
extensional and hybrid shear-extensional types. Continued
deformation resulted in folding of these veins with strong strain
partitioning. Major vein packages are closely spatially associated
with the felsdmafic contact and an interpreted early structure
which appears to have partitioned early dilation. This structure is
now obscured by strong deformation but is currently represented
by a zone of planar veins.
INTRODUCTION
T h e Morning Star mine is owned by Hill 50 Gold N L and
includes a number of historically mined pipe-like ore shoots. It is
located approximately 3 k m N W of the township of Mt Magnet,
Western Australia (see Figure I ) . Mineralisation is usually hosted
~~ ~
I. Fractal Graphrcs. 39 Fainvay. Nedlands WA 6009
2 FAuslMM. Fractal Graphics. 39 Fainvay, Nedlands WA 6009
3 H 1 l l 5 0Gold NL, PO Box 1547. West Penh WA 6872.
Rc; 1 - Map showing interpretive geology on pit maps for Star and
Nathan Pits. Interpretation of Evening Star chert between Nathan and
Star Pits represents stratigraphic form surface. The felsic intrusion
defines an opposing fold to that in stratigraphy with a similar axial
surface. Some of the Morning Star orebodies referred to in the text
are shown approximately.
in a strongly quartz-carbonate veined sequence of mafic rocks
(interpreted as basalt lavas) near their contact with a felsic
intrusive body. The basalts belong to the Viqueries Formation
(Thompson el al, 1990) which also includes the Nathan-Easter
chert and a polymict, generally felsic, breccia unit that occurs to
the east of the Morning Star orebodies. To the north and west of
the Morning Star orebodies is the Latecomer fault zone which
comprises a series of discrete strike slip (dextral) faults.
Much of the work described in this paper is a continuation of
work carried out by previous geologists w h o worked at, and
mappcd the lodes of the Morning Star mine. T h e backs mapping
carried out by these geologists has provided invaluable records of
the geology of the Morning Star lodes. Much of this geology has
been captured in a digital format and has been used extensively
in this study. Geological investigations such as the honours thesis
by Henderson (1981), the report by Ward and Evans (1985) and
the paper by Thompson et a1 (1990) have detailed various
interpretations of the geology considered during this study.
Regional accounts of the geology by Archibald (1980, 1982)
have provided useful constraints o n the regional structure of the
Mt Magnet area.

4th International Mining Geology Conference Coolurn, Qld, 14 - 17 May 2000 143
 K MASON rf til

I n this study, detailed geological mapping and 3D modelling
was undertaken in order to characterise the geology, and the
structure in particular, of the Morning Star orebodies. Geological
attributes have been recorded consistently and graphically
represented so that each of these could be manipulated visually
in a computer environment. thus allowing 3D geological models
to be built. The purpose of the mapping and modelling was to
provide a factual record of geological features which could be
used to study and interpret their relationship to mineralisation.
After the 3D geological mapping was completed, analysis and
modelling was undertaken to develop a predictive geological
framework for understanding the distribution of mineralisation
based on the nature of structures, veining and alteration. A
detailed sampling program together with a microstructural study
initial buckling geometry of the stratigraphy. That is. the initial
shape of the felsic body must have approximated a low
amplitude synform plunging south such that E-W compression
resulted in amplification of this shape. Simultaneously, the
stratigraphy (as outlined by the Evening Star chert) must have
contained an amplifying fold that formed from an initial
low-amplitude buckle whose shape was a south plunging
antiform. The result of this geometric arrangement of
'mechanical stratigraphy' is a significant space problem between
the two amplifying folds such that accumulating shortening
results in concomitant dilation between the folds (Figure 2).
~ ~~~

has been initiated with the aim of finding out exactly where the 1. Initial buckling I
gold occurs in relation to the systematically mapped geological
features. To accomplish this, faces with detailed sampling are
being mapped at 1:25 scale. The detailed sampling and
microstructural studies are incomplete at this time. The f /Mornid Star Felsk \ I
microstructural study should enable the relationships between
gold precipitation and vein formation, as well as foliation
development and alteration, to be established. Extension

This paper describes the geology of the Morning Star lodes

with emphasis on a detailed underground mapping and 31)
computer modelling program as part of a more exhaustive but as
yet incomplete study of the geology and mineralisation. This
I Evening Siar Chm I
study is aimed at a better understanding of the mineralisation and
will continue to result in better sampling parameters, stope 2. Amplifying buckle folds
definition as well as better risk assessment and management.

GEOLOGICAL SETTING

Geometry
Mapping in the Morning Star area has been carried out at 1500
scale for open pit exposures in both the Star and Nathan pits
(Figure 1) and at l : l O O scale for underground exposures
accessible at the time of mapping campaigns. Several distinct
marker lithologies and important structures have been
recognised. The rocks in the area consist of a series of
metamorphosed and dcformcd mafic and felsic rocks with minor
sedimentary units. Mapped contacts and the gross geometric
shapes of the various felsic bodies suggest that most are
intrusive. Overall, the main Morning Star felsic body comprises a
synlorm plunging to the south (Figure 1).
Sediments in the area comprise chert and ferruginous chert,
known locally as both the Evening Star and Eastcr cherts
(Thompson et af, 1990). The cherts form discontinuous, irregular
bodies which are confined to narrow linear belts and large folded
pods. This distribution along linear belts is interpreted to reflect
the pre-deformation stratigraphy which has been dismembered
mainly by boudinage and extension on fold limbs. 'me hinge
areas. by contrast, form large bodies with dimensions in tens of
metres. These bodies are typically occupied by folded and
faulted cherts and typically have 'trailing', narrow. linear belts of
chert (ie the limbs of the fold). Two hinge areas have been
recognised. These are in the Nathan Pit and the Evening Star part FIG2 - Sequence illustrating buckling of' felsic intrusion and stratigraphy
of the Star Pit. These hinge zones arc joined by discontinuous, forming 'opposed' folds sharing the same axial surface and gcnerating
narrow belts of chert and together form the only well defined significant bulk dilation in the Morning Star area.
stratigraphic marker in the area. The south plunging, antiformal
hinge zone exposed in the Nathan Pit is immediately south of the
Morning Star system of orebodies and the Morning Star felsic This mechanism is proposed to account for the large amount of
synform. The two folds approximately share a common axial dilation, evidenced by the quantity of veining in the Morning
surface parallel to the main foliation in the area. Star area. A question that arises from this interpretation is: '1s
dilation concentruted near tlir felsic/mujic contact or is it
distributed in some systematic way between the two folds?' It is
Interpretation clear that significant dilation is taken up near the felsic/malic
I This arrangement of folded lithologies with two folds essentially contact (ic in the vicinity of the Morning Star orebodies) and this
opposing each other is interpreted to have formed because of the may be due to a large competency contrast between the felsic
initial geometry of the felsic body and its rclationship to the rocks and the mafic rocks which focuses dilation on the contact.

144 Coolurn. Old. 14 - 17 May 2000 4th International Mining Geology Conference

The veining in the vicinity of the felsiclmalic contact forms
the ma.iority of the ltde deposits mined in the Morning Star area.
1listoric;illy these orebodies are numbered from 01 through to the
01 I and ;ire generally disposed about the felsichafic contact.
The orebodies generally comprise large packages of subparallel,
often lolded, veins however i t is not yet clear that an entire vein
package is mineralised. Because of this, we use a terminology
that discriminates vein packages from ore (viz the 03 vein
package comprises ii series of closely spaced veins, part or all of
which may be mineralised forming the 03 orebody).
PREVIOUS MAPPING
Many o f the Morning Star lodes have been mined from a shaft
with ;I series of levels and sublevels that were developed from the
shaft. Mapping of these exposures, by previous mine geologists,
has provided an invaluable record of the geology of this deposit
from surface down to approximately 100 mRL (210U level,
approximately 300 m below the surface). Current development is
from a decline and overlaps, in part, with the shaft development.
Visualisation of all mapped veins in 3D demonstrates consistent
and repeatable geometries over significant vertical distances,
albeit with some anomalous zones (Figure 3). Many veins
mapped in the shalt-developed levels can be correlated with
-'i(i 3 - Veins mapped in shaft-developed levels showing consistent vein
geometries over significant vertical distances.
4th International Mining Geology Conference
GEOLOGY ANI) STRUCTURE OF THE MORNING STAR MINE. M T MAGNET, WA
veins mapped in the current development with a high degree of
confidence (Figure 4). Reconstruction of the 3D shape of the
felsic contact in some detail has been possible from old and
current mapping and drill core (Figure 5 ) .
W O I W Vein package in old workings
\
/ 01 W Vein package in
old workings
\
01 w veins 2100 level
01 W Veins 2050 level \r-d
FIG4 - Correlation of 01W vein package from 2050 level through the
2075 and 2100 levels (good correlation) up into the shaft-developed
level mapping (reasonable correlation)
A planar (NNW oriented) vein zone is readily interpreted
through the shaft-developed level mapping. Here the zone
appears as both highly strained veins and as planar, moderately
deformed veins that terminate other vein sets. In addition, this
planar vein zone appears to have had a very marked effect on the
terminations and shapes of old stopes.
The correlation of vein packages from level to level is based
on vein thickness and fold amplitude and wavelength. Many
veins arc remarkably similar over great vertical distances and this
gives much confidence in predicting down plunge continuity.
Importantly, some of these vein packages can be confidently
interpreted throughout the mine although some apparently
discontinuous zones occur.
DETAILED MAPPING AND GEOLOGICAL
OBSERVATIONS
Data collection
The backs and walls of the nominal Sm x Sm development of all
available current development levels were mapped at 1: 100 scale.
All mapping has been digitised and accurately registered in 3D
space.
Coolum, Qld, 14 - 17 May 2000 145
 R MASON er (11

I
‘afic

__ .

492CM 49350

Flci 5 - Detailed model of felsic contact showing irregular nature of the contact suggesting an intrusive (but later folded) origin.
Note the cuspate lobate fold shapes. Felsic contact reconstructed from drilling and mapping. Baed on 1 - 5 m spaced interpreted
horizontal sections. Looking approximately North.

The mapped geological features fall into five groups:

TABLE 1
1. lithology,
Vein types.
2. veins, , - _ - _ ~ ~

3. alteration, _vein - +. ~. - -.
Descriptfi -!
4. ductile structure (foliations and other fabric elements), and i Vu ]-Ve&divid& - - -. - -
Quartz carbonate molybdenite f stibnite C chlorite -f I
5. brittle structure (faults and fractures).
Lithologies comprise two main groups. felsic and mafic rocks Vm .- Quartz carrnate’dirtylveins. ~- .- -,

with an intermediate dyke cutting both groups. Many of the

lithological variants are possibly derived from the same, or iV b 1 Quartz carbonate ‘elyn’ veins with brown carbonate !

similar, protolith but have been discriminated because of

on vein margEasscc!ated with rFver&ults.
~- :
mappable differences due to variations in deformation and 1. VL- Vein,
V e [ n g g z e n a t e . Occur in subho@!al sets,-
I
alteration. The fclsic rocks are likely to have been derived from a
single, felsic rock of generally uniform composition. Most of the
I cV’ clean quartz carbonate undivided.
~

~ ~. - I
relatively undeformed and weakly altered fine-grained mafic
rocks are identifiable as pillowed lavas or their ‘unpillowed’
equivalents. These are interpreted as a series of basaltic lavas
with intermittently developed pillows. Some lithological types
arc interpreted as highly deformed and strongly altered variants TABLE 2
of pillowed and massive basaltic lavas and are so coded to reflect Alteration types.
this deformation and alteration. 7 .- ~.

Veins have been subdivided on the basis of composition. Alteration.1- Description

.~ -. --
i
Schemes for discriminating vein types based on orientation Molybdenite andor stibnite in Vy veins and silver !
, become ambiguous when final orientation depends largely on , -. . (.?~e-moly~nite)onfoliationsurfaces.
initial orientation and fold shape. Veins were mapped as
accurately as possible at 1:lOO scale and deformation features
’ Developmnt of khaki-brown-yellow phyllonilicate
~ mineral in mafic rocks (sericite). Intense and
such as boudinage, folding and fold asymmetry are represented. 1 strongmoderate v - d a t i a a v ebeendiscrim&.
However, many small veins exist which cannot be represented at
the scale of mapping. The vein types discriminated in the
’ Strong sericitic alteration of felsic rocks; obliterates !
nm!?Y&!F. .-
mapping are described in Table 1. Four main alteration types I
. .-,
have been discriminated and are shown in Table 2.
Recorded ductile structures include foliations and their
intensity, and shear zones. Two foliations have been recognised
in some areas, and are common in less altered felsic rocks. The
first formed foliation (based on overprinting relationships) has as weak, moderate and strong with a moderate foliation intensity
been recorded as SI and the second as SII.The second of these the most common and weak foliation generally developed in
two foliations is by far the most penetrative and forms the competent lithologies. Strong foliation is recognised by the
dominant fabric in mafic rocks. Variation in foliation intensity is development of very continuous foliae in fine-grained mafic
assumed to be due to differential shortening, which is partly rocks and, if very strong, foliation boudinage (Platt and Vissers,
dependent on rock type. Foliation intensity has been categorised 1980) is developed.

146 Coolurn, Old. 14 - 17 May 2000 4th International Mining Geology Conference
 GEOLOGY AND STRUCTURE OF THE MORNING STAK MINE. MT MAGNET. W A

Brittle structures are delined here as those which constitute a

discontinuity in the rock mass (ie veins are treated separately).
These structures comprise:
I. thrust faults. which often develop within strongly foliated
/.ones;
2. strike-slip faults which are steeply dipping and strike NE;
and
3. barren fractures (cg joints or other fractures with no
infilling).
Several other features arc recorded during the mapping as 4!
point measurements. These include orientation measurements of
foliations, lineations and other structural elements. These data
are stored as databases in the modelling environment where they
can be viewed in various formats.

Distribution of lithologies 325

The contact between the felsic rocks and mafic rocks within the
main mineralised zone has an irregular, but generally arcuate
shape that has the form of a steep south plunging synform. Two
foliations developed, and preserved in the felsic rocks, attest to a
complex deformation history. The irregular shape of the felsic
body is suggestive of an intrusion rather than a conformable part
of the stratigraphy; ie volcanics (Figure 5 ) . The current shape of
the contact has been determined partly by its initial geometry and
partly by deformation events subsequent to emplacement of the
felsic intrusion. Folds in the felsiclmafic contact typically have
cuspate-lobate forms characteristic of folding a competent/ FIG6 - Detailed model of intermediate dyke based on current level
incompetent interface. Surprisingly, the form of these folds detailed mapping mnd diamond drilling. The dyke is often
suggests that the felsic was less competent at the time of folding non-continuousand complex.
than the mafic, possibly reflecting the strongly sericitised nature
of the felsic.
A broad zone containing intermittently developed pillowed
basalts trends NNE in the eastern parts of the mine. This may be
subparallel to the local trend of stratigraphy. A medium grained
massive basalt unit locally forms a marker horizon, however its
origin is uncertain. It may be a contiguous part of the volcanic
stratigraphy or it may be an intrusive dyke.
An intermediate dyke develops consistently along an
approximate N-S zone although its detailed shape is often
non-continuous and complex (Figure 6). The dyke is deformed
and two foliations have been observed in it although it is oriented
subparallel to the main foliation (Sir).

Distribution of strain
The amount of strain accommodated by a particular volume of
rock is assumed to be reflected by the intensity of the foliation.
This assumption allows rapid mapping of strain variations to be
carried out and is based on readily observable characteristics of
the foliation. Weakly foliated rocks show faint or discontinuous
cleavage surfaces whilst moderately foliated rocks have
continuous well-developed cleavage defined by subparallel
alignment of phyllosilicate minerals. Strongly foliated,
fine-grained mafic rocks have very continuous foliation, strong
parallel alignment of phyllosilicates such that the rock has a very
platy look and sometimes develops foliation boudinage. Strongly
foliated zones (high strain zones) are intermittently developed
and appear to form anastomosing arrays. They are generally not
discrete structures and so have poorly defined boundaries and
terminations that can be difficult to discern from moderately
foliated zones.
High-strain zones are generally parallel to the foliation in
strike hut can have a shallower dip. The foliation within
high-strain zones is generally parallel to foliation in moderately
strained zones (Figure 7). High-strain zones intersecting the
Morning Star felsic commonly contain ‘fingers’ of felsic FIG7 - Equal area projection of poles to foliations:
material. I t is unclear what controls the location of areas of a) inhigh strain zones; b) outside high strain zones
greater strain accommodation, especially since it is not solely

4th International Mining Geology Conference Coolum, Qld. 14 - 17 May 2000 147 1
 due to intrinsic rock properties. However. high-strain 7.0nes
Felsic Contact appear to coalesce to the south. away from the felsic conract
(Figure 8). In general. low strain domains occur adjacent to
relatively straight, NW-SE oriented segments of the felsic
contact suggesting that parts of the felsic body acted as buttresses
78400
to the deformation.

Critical relationships

Pre- or syn-SI1 veitis

The majority of veins observed in the area of the Morning Star
orebodies are deformed. Commonly, veins are folded or
boudinaged with the main Si1 foliation either axial planar (folded
78350 veins) or parallel (boudinaged veins) to the veins. Ileformed
veins are usually compositional types Vy or Vm.
Folded and boudinaged veins are interpreted to have formed
pre- or syn-SII formation. Folded veins would have formed
initially with an orientation at a low angle to the Si1 compression
direction while boudinaged veins would have formed with an

1; Zones (dark shading)

initial orientation at a high angle to the Si1 compression direction.
These two types may have been part of an orthogonal array of
extension veins. Veins with an initial low angle to the
compression direction may have originated as conjugate sets of
78300
49250 49300 49350 hybrid shear-extension veins. Figure 9 shows the geometries of
early-formed Vm and Vy vein types relative to the SI^ foliation.
Early veins commonly occur in packages which comprise
multiple interconnected and overprinting, composite veins and
vein sets generally with similar orientations. Such packages
FIG8 - Coalescing high strain zones away from (to the south 00 the indicate significant dilation over, at least, several fracturing
felsic contact. Mapping of strongly foliated (dark shading) zones and episodes. Moreover. many of these large vein packages occur in
veins from 207.5 level. There are relatively few high strain zones near the strongly mincralised zones (eg 05.03,OI W) and there appears to
fclsic contact but 100 m to the south. exposed rocks are dominated by be a spatial association between large vein packages and
high strain zones. mineralisation. This relationship is obvious from stope shapes
and the veins mapped from parts of the shaft-developed
workings.

vein

Strong S, foliation -
Im

FK;9 - Maps of Vy and V m veins showing their relationship to the SI1 foliation. a) Folded Vy veins of the 0 1 W vein package showing
axial planar SII foliation hoth strongly (closely spaced continuous lines) and moderately (dashed lines) developed. h) Folded and weakly
houdinaged veins of the 010 vein package showing geometric relationship to SI1 foliation.

148 Coolum. Old. 14 - 17 May 2000 4th 1nternat;onal Mining Geology Conference
 GEOLOGY A N D STRUCTUREOF THE MORNING STAR MINE. MT MAGNET. WA
Some large vein packages (such as the 03 and the OS) are
developed near the felsic/mafic contact. In places these vein
packages occur entirely within the felsic (as evident in the
shaft-developed level mapping) whilst in other areas they form
on the contact zone. Both the veins and the contact are folded.
These observations are interpreted as follows:
1. a series of generally planar veins formed on the contact. but
where perturbations in the contact occurred the veins
continued straight through. such that i n some areas the
entire vein package is within the felsic rocks; then
2. thc veins and contact were folded together during DII
deformation.
Shear zone related veins
Vb veins arc commonly associated with high strain zones and
occur as either west dipping reverse shear arrays or as foliation
parallel arrays within. and deflected by, a reverse shear. Unlike
the reverse shear array Vb veins. foliation parallel Vb veins
related to reverse shear zones in high strain zones are difficult to
interpret. This is because they arc at a high angle to the
compression direction yet clearly spatially (and probably
genetically) related to the reverse shear zones (Figure IO).
Flci IO - Sketch showing relationships of Vb veins to reverse shear zones
in high strain zones. The veins form reverse shear arrays and foliation
parallel arrays.
l’ost-S~~
veins
Vc veins commonly fill a series of subhorizontal fractures, both
in high strain zones and near the felsic contact. Vc veins are
essentially undeformed and appear to post-date all Vb veins.
Quartz-carbonate veins commonly occur in strike-slip faults.
In one critical exposure a strike-slip fault offsets, and therefore
clearly post-dates. a Vc vein This timing is important because
4th International Mining Geology Conference Coolum. Old. 14 -
the Vc veining event clearly separates (in time) reverse shear
zone and high strain zone formation from strike-slip faulting.
Although they may have a common maximum principal stress
(01) direction the timing relationship described above clearly
separates their development.
Zone cfplanar veins
A zone of approximately NNW striking, planar, foliation-parallel
veins, together with folded veins, occurs in the area between the
eastern end of the OS vein package and the 01W area (Figure 1 1 ),
This area is notable and may be distinguished from adjacent
zones by the common occurrence of generally continuous,
planar. foliation parallel veins. Planar, foliation parallel veins
could have been formed in several structural settings, these arc:
I. formed pre-Sii and have been strongly flattened;
2. formed late i n SIIand have been weakly flattened;
3. formed post-Sl1 parallel to the foliation: or
4. formed pre-S1i at a high angle to S11, but have been so
strongly deformed during Si1 (high strain zones) that they
arc now transposed and parallel with SI!.
These veins are generally slightly boudinaged to planar and so
are probably formed late in S11 at a high angle to 0 1(ie type 2
above). Some may also be strongly deformed in high strain zones
but are probably not transposed from initially high angles to SII.
In tetpreted Planar
FIG II - Planar vein zone defined by long relatively continuous planar
veins amongst foliated zones (current level mapping 2075 level
showing planar veins).
02 vein package and the felsic/mufc contact
An important geometric relationship is observed in the shape of
the fclsic contact and the 02 vein package. Where the 02 vein
package is well developed i t coincides with a similarly oriented,
NNW or NW segment of the felsic contact. However. below this
17 May 2000 149
1
R MASON et ul

level that segment of the felsic contact becomes more aligned
with the felsic contact immediately to the east (at the OS vein
package) and the 02 vein package becomes less well-developed
(Figure 12). The interpretation of this relationship is that the
far-field stress tensor is perturbed by the 02 aligned segment of
the felsic/rnafic contact, and Imally extension is accommodated
by the NW oricnted 02 vein package. As this fclsiclmafic contact
segment becomes less planar and more east west at depth,
extension is accommodated by the enhanced development of the
OS vein package.
Alterution
Coarse molybdenite in and around veins (0-type alteration) is
strongly associated with gold mineralisation. However, 0-type
alteration also occurs in zones outside veins, often near reverse
shear zones in high-strain zones, as finely disseminated
molybdenite which appears as a silver-grey dusting on foliation
planes. This alteration together with high-strain zones is also
strongly spatially associated with Vb veins. B-type alteration is
widespread in mafic rocks particularly around the 02 and OS to
OIW orebodies. S-type alteration occurs in felsic rocks and is
mineralogically different to B-type alteration but is also referred
to as a sericite alteration. Timing relationships between foliation
development and alteration are difficult to constrain in
hand-specimen hut it appears that 0-type and S-type alteration
may post-date or form in late stages of SIIdevelopment. B-type
alteration may have pre-dated Sir development.
STRUCTURAL SYNTHESIS
General
The felsic/mafic contact appears to have been the locus of
significant dilation evidenced by the intermittent development of
large vein packages. The contact geometry is an important
control on orebodies that are developed in vein packages on the
felsic/mafic contact. These include the 03 and OS which develop
along the contact and also the 02 which is developed frotn the
western end of the OS and to the south (see discussion below).
The 04 orebody also appears to be developed in the vicinity of
the contact whilst the 010 vein package is a series of planar veins
which probably cut the contact but appear to he niiner;ilised
south of the contact.
The 01 and 01W (and the 06) orebodies are somewhat
different in that they are not proximal to the felsiclmalic contact.
However, each of the vein packages associated with these
orebodies terminates at the zone of planar veins which itself
intersects the felsiclmafic contact just east of thc 05 vcin
package. Moreover, the planar vein zone and the felsiclmalic
contact together 'connect' all ol' the above mentioned Morning
Star orebodies (01. 02, 03, 04. 010, 05, OIW. Oh). Such a
connection suggests that this may be form a significant part of
the 'plumbing system' responsible for fluid flow leading to
mineralisation (Figure 13).
The origin of the planar vein zone remains enigmatic. On the
2100. 2075 and 2050 levels this zone is represented by planar
veins that trend N N E amongst folded veins. It is partly defined
by veins in high-strain zones. To the west of this planar vein
zone, other planar veins have been mapped although their
continuity as zones is less persistent. In the previous mapping
from shaft-developed ievels, vein geometries in some areas
suggest the planar vein zone is part of a high strain zone. The 01,
01W and 06 vein packages appear to terminate at this zone and,
in many cases, this is appears not to be a simple case of offset but
rather the vein packages do not exist on both sides of the planar
vein zone. These relationships suggest the possibility that the
planar vein zone may represent a pre-DII structure that
influenced early vein development by partitioning dilation, and
subsequent1 y partly concentrated DII deformation.

3 I
I -'

Felsic Contact

03 Vein Package
03 Vein Package

elslc Contact

05 Vein Package
Felsic Contact 1

/
Poorly developed 7R375
02 Vein Package
02 Vein Package

49:ux) 49325, I 4'

FIG12 - A series of horizontal sections depicting the geomeuic relationship between a NW oriented segment of the felsic contact and the 02 vein
package. a) 150 mRL. Well-developedNW contact segment and well-developed02 vein package. ( I O m thick horizontal slice) (Veins mapped by
previous mine geologists). b) 130 mRL. oblique view of well-developed NW contact segment and wcll-developed 02 vein package. (20 m thick horizontal
slice) (Veins mapped by previous mine geologists). c) approximately 50 mRL. NW oriented segment of felsic contact becoming less
planar as part of a transition to a more WNW orientation and concomitant poorly developed 02 vein package. (20 m thick horizontal slice).

150 Coolum, Old. 14 - 17 May 2000 4th International Mining Geology Conference
 GEOLOGY AND STRUCTURE OF THE MORNING STAR MINE. MT MAGNET, WA
1 3 ~
FIG 13 - Planar vein zone defined by long relatively continuous planar veins amongst foliated zones. a) current level mapping 2075 and 2100 levels
showing planar veins; b) interpretation of planar vein zone through shaft-developedlevel mapping showing relationship of planar vein zone to old slopes.
Structural evolution
The earliest recognisable deformation in the Morning Star area is
represented by an early foliation (SI) which is commonly
observed in felsic rocks but less so in mafic rocks. Most of the
early foliation has been strongly overprinted by the main
foliation (SII).I t is uncertain what macro-scale structural features
may have resulted from this early deformation event but it may
have influenced. in part. the shape of the felsiclmafic contact
prior to DII deformation. Early folds have not been recognised in
the Morning Star area, however their recognition probably relies
on interpreting the larger scale structural geometry. Because little
is known of this early deformation and, by contrast, much is
known about the main foliation forming structural event (SrrlDII)
the following discussion on the structural evolution is focussed
mainly on the DII event.
Folds are defined by the felsiclmafic contact, basalt pillow
margins and by veins. No other suitable markers exist in the
current development of the Morning Star underground mine area.
Penetrative deformation resulted in the development of an axial
planar foliation. I t is likely that the amplitudes and wavelengths
of folded veins are related to vein thickness as well as to the
amount of shortening. Apart from different areas accommodating
4th International Mining Geology Conference Coolum. Old. 14 -
78415
.78365
Interpreted planar vein zone
different amounts of shortening, as evidenced by intermittent
development of high-strain zones, folded veins may exhibit
different amounts of shortening if they formed at different times
during a progressive shortening event (eg DII). That is, veins
formed early in DIIwill be shortened more than veins that have a
comparable orientation but that formed late in Dl1.
The DII deformation is a progressive. approximately E-W
shortening event can bc considered as occumng in a series of
incremental steps. In the first increments, initial buckling of the
felsidmafic contact occurred and early veins formed in response
to dilation between the Morning Star and the Nathan fold. Thus,
early veins will probably comprise three spatially distinct groups:
1. a group of approximately E-W steeply dipping extension
veins;
2. two groups of hybrid shear-extension veins. forming
conjugate shear arrays trending approximately NE and
approximately SE. The acute angle between these sets is
dependent on the differential stress and intrinsic rock
properties.
Early veins may have cut across an incipient Si1 foliation. The
next increments of shortening resulted in further buckling of the
felsiclmafic contact, further foliation development. initial
17 May 2000 151
R MASON et crl

buckling of early formed veins and the formation of new veins

(given that every increment of shortening produces some amount
of dilation between the two macro-scale folds). The final
increments of shortening appear to bc complex, however
observed relationships (high strain zones and Vb vein typcs)
indicate strong flattening with (at least) transient periods of high
fluid pressure. Strong flattening is indicated by the presence of
high strain zones. These zones progressively accommodate more
strain than can he accommodated by foliation development
alone. Consequently foliation boudinage develops where small
amounts of slip on curved foliation surfaces helps to
4I '
J I I-
accommodate additional increments of strain. Further
deformation results in development of west dipping, reverse
shear zones whereby strain accommodation is achieved by
movement across the shear zones and finally if the strain rate
becomes too high, brittle failure occurs and a discrete reverse
fault develops. Figure 14 shows the progressive deformation in
increments from incipient SII development through to reverse
shear zones and finally discrete reverse faults. Reverse shear
zones develop en-echelon shear arrays and foliation parallel
veins within the shear zones (discussed previously). This may
also coincide with 0-type alteration of wall rocks as this
alteration is frequently associated with high-strain zones. The
development of discrete reverse faults is essentially the last
increment of deformation in the DII event.
Several important processes appear to have operated
contemporaneously during the DIIdeformation, they are:
folding of the felsiclmafic contact;
formation of the Si1 foliation;
dilation between the Morning Star synform and the Nathan
anti form;
veins formed progressively and were folded accordingly; and
some zones accommodated relatively greater bulk shortening
and formed high-strain zones.
These processes are depicted in Figure 15.
Following the D11 deformation, the next structures to form are
flat lying fractures often filled with vein material. These fractures
are commonly developed in zones of strong foliation (high strain
zones) and this is interpreted to be due to the increased
anisotropy in these zones. Such a strong anisotropy would tend to
concentrate subvertical extensional strain in the strongly foliated
zones and hence develop subhorizontal fractures. At some time
during the development of these fractures the nature o f the pore
fluid changed such that some fractures are filled and some are
not.
Strike-slip faults are interpreted to post-date development of
the subhorizontal fractures because of one clear overprinting
relationship.

RELATIONSHIP BETWEEN GEOLOGY AND

MINERALISATION

Introduction
There is a clear association between old stopes and large vein
packages. This suggests that mineralisation is contained in, and
perhaps near, zones of strong dilation. This association may be
interpreted in several ways. Gold may have been precipitated
during vein formation, in which case there should be an equal
chance of finding gold anywhere in that particular vein or
contemporary veins. Alternatively, the large vein packages may
have acted as a competent host lithology and gold may have been
FIG 14 - Sketch showing interpreted progressive development of high
introduced during a later deformation (or increment of
strain zones during increased shortening: a) incipient Sir foliation:
deformation) than that which formed the vein. In this case the
distribution of gold within the vein package may be more b) well developed SIIfoliation; c) shortening is no longer accommodated
by foliation development and foliation boudinage forms and reverse
complex and will be influenced by structures that formed during
shear zones form; d) discrete reverse faults accommodate further
gold deposition.
shortening and vertical extension.

152 Coolurn, Old. 14 - 17 May 2000 4th International Mining Geology Conference
 GEOLOGY AND STRUCTURE OF THE MORNING STAK MINE, MT MAGNET, WA

Felsic

Contact related large extensional veins

Felslc/maflc contact

Anays of hybrid
shear extension velns

Shortening
direction
I \
Orthogonal extension vein arrays

"%

\
Large extmsional veins

"Early' structure (planar vein zone)

Folded arrays of hybrid

shear extension veins

contact

Flci IS - Cartoon showing three incremental stages of the interpreted evolution of major stmctures and veins in the Morning Star mine (map view).
a ) initial shortening. very low strain. forms various sets of veins including orthogonally arranged extension veins and conjugate sets of hybrid
shear-extension veins. Large extensional veins form along felsidmafic contact and abut interpreted early stmcture (planar vein zone). b) increased
shortening. low to moderate strain. early-formed veins and felsic/mafic contact have initiated significant buckle folds. new veins form and SI, foliation
is incipient to well-developed. c) maximum shortening now results in attenuated folds in felsiclmafic contact and veins with foliation well developed
and partitioned into high strain zones with lower strain zones buttressed by felsiclmafic contact.

4th lnternatlonal Mining Geology Conference Coolum. Old. 14 - 17 May 2000 153 ,
 R MASON et (11
Model for gold mineralisation
The observations described above and those pointed out in earlier
sections have bccn developed into a model for gold
mineralisation that, at this stage of the study, must be considered
preliminary. The description of this model follows.
Clearly, many of the veins in the large vein packages arc
deformed by the DII deformation. The association between
0-type alteration and high strain zones (ie late DII deformation)
has been highlighted earlier. If all 0-type (molybdenite)
I alteration post-dated Vy vein formation then molybdenite must
have been introduced during late D11.Because of the association
between 0-type alteration (molybdenite) and gold mineralisation
it may be inferred that gold was also introduced during late DII
deformation and post-dated many of the veins in the large vein
packages. This would also imply that the molybdenite in Vy
veins was introduced after vein formation and that Vy veins may
have formed originally as just quartz-carbonate veins. This
model is consistent with late-DII deformation being strongly
ductile (eg high strain zones) and yet dominantly brittle in vein
packages. Early-DII deformation appears to have been
~
dominantly ductile and may have coincided with higher pressure
and temperature conditions a n d o r a lower strain rate. Because
some high strain zones develop discrete faults (ie brittle
deformation) it is likely that Iate-DII deformation was near the
brittle-ductile transition given the prevailing pressure,
temperature and strain rate conditions. Therefore, while
deformation in the wall rocks was largely ductile (albeit with
some brittle behaviour as reverse faults), deformation of the
considerably more competent vein material would have been
brittle enabling enhanced fluid flow via fracture induced
permeability. This mechanism has the potential to develop
significant fluid conduits within continuous, large vein packages.
If the pore fluids were transporting gold at this time it would
have been preferentially deposited in the large vein packages
perhaps due to pore fluid pressure drops associated with vein
package fracturing episodes.
Fluid flow is interpreted to have been primarily controlled by
the felsic/mafic contact and the planar vein zone because of the
spatial link these features provide between all orebodies in the
Morning Star deposit.
Implications of the model
If the model for gold mineralisation described above holds true
then several geological features are important for outlining
mineralised zones. Molybdenite bearing (Vy) veins together with
0-type alteration arc the key indicators of mineralisation. The
geometries of large vein packages are critical for outlining the
shapes of mineralised zones. These geometries may be predicted
from fold vergence and the plunges of nearby folds but will also
be influenced by high strain zones and late faults. Further work
(detailed sampling and microstructural studies) should establish
what parts of large vein packages are best mineralised and
whether this is systematic and can be predicted.
Coolurn. Old, 14 - 17 May 2000
Whilst the aim of this study is to better understand
mineralisation, Morning Star is an operating mine and it is
important that information gathered has been developed into
operating knowledge. The study has combined all hislorical data ,
with current data and interpretations into one coherent database,
resulting in efficient use of the input of many geologists over a
vast time span and a common environment for all geological
data. The knowledge accumulated has manifest itself as real
economic benefit, and continues to be a profit augmenting
mining tool.
By better comprehending the nature of the geology and
mineralisation:
sampling procedure has been fine tuned:
the significance of drill intersections is better understood:
mine personnel are now quickly able to discern what
structures and alteration types are important.
3D modelling has allowed:
better down plunge predictions;
confirmation of stope design, ensuring common structures
are connected by design between levels;
decreased risk in all stope and development designs;
the development of a tool for the interpretation and
exploration of undiscovered ore zones; and
0 better management (and use of) collected geological data.
ACKNOWLEDGEMENTS
The authors acknowledge Hill 50 Gold NL for permission to
publish this paper. Review by Bill Power significantly improved
the paper.
REFERENCES
Archibald, N J . 1980. Geology and structural controls to Gold
Mineralisation, Mt Magnet Area, Carpenteria Exploration Company,
Unpublished report.
Archibald, N J. 1982. Structure, lithological association units and gold
mineralisation, Mt Magnet area, in Archueun Geoloxy oJ the
Southern Murchison (Compiler: J L Baxter) pp IS-27 (Geological
Excursion Guide 1982 GSA (WA Division)).
Henderson, C A, 1981. The nature and genesis of quartz-gold vein
systems in the Morning Star deposit. Mt Magnet, Westcrn Australia.
BSc (Hons) thesis (unpublished), University of Western Australia.
Perth.
Thompson, M J. Watchorn. R B, Bonwick, C M. Frewin, M 0,
Goodgame. V R. Pyle. M J and MacGeehan. P J, 1990. Gold
deposiLq of Hill 50 Gold Mine NL at Mt Magnet. in Geology o f f h e
Mineral Deposits ofAustruliu und New Guinea. (Ed: F E Hughes),
pp 221-241 (The Australasian Institute of Mining and Metallurgy:
Melbourne).
Platt. J P and Vissers. R L M, 1980. Extensional stmctures in anisotropic
rocks, J Stnrct Geol. 2(4):397-410.
Ward, M and Evans, G. 1985. Untitled, Unpublished company report.
4th International Mining Geology Conference
Resource and Reserves
The 1999 JORC Code -
What Does it Mean for Today’s Mining Geologist?
P R Stephenson’
ABSTRACT
The 1999 edition of the Australasian Code for Reporting of
1drnrijic.d Minc>rcil Resources and Ore Reserves (the ‘JORC
Code’) became effective i n September 1999 and is the latest
revision of a Code which was originally issued in 1989, but
which has an ancestry dating back to the first JORC report
released in 1972. The modifications introduced in 1999, which
are brietly discussed in this paper, substantially improved the
document. but did not materially alter the fundamentals of the
Code, these being the Mineral Resource/Ore Reserve
classitication framework and terminology, and the requirements
and guidelines for public reporting of Resources and Reserves.
Codes or guides similar to the JORC Code exist or are under
development in other countries. including the United States of
America, Canada, the United Kingdom and South Africa. It is
pleasing to note that the 1999 JORC Code has been used as a
model by these countries in developing their latest standards, and
has been a major inlluence in the formulating of international
reporting standards.
The JORC Code is primarily a document covering the
reporting o f the results of mining companies’ activities to the
public. However, mining geologists are interested in practical
assistance and guidance in carrying out their duties. The JOKC
Code provides this in four ways. It establishes a framework
within which those preparing and publicly reporting Mineral
liesource and Ore Reserve estimates must operate, by setting
standards for the classification and reporting of Kcsources and
lieserves and for qualifications of Competent Persons. It
establishes the division of rcsponsibility between the company’s
Board of Directors and Competent Persons with respect to the
preparation and reporting of Resources and Reserves, and
empowers Competent Persons to materially influence how their
Iiesource/Keservc estimates are reported to the public. It
provides an extensive, detailed and practical check list of criteria
to be taken into account in the preparation of Mineral Resource
and Ore Kcserve estimates. Finally, it provides a strong measure
of due diligence protection in the event of litigation if it is
followed with diligence and honesty.
INTRODUCTION
The JOKC Code has become well accepted within Australasia as
a standard for public reporting, and has, in recent years, become
increasingly used as a template for other countries’ reporting
standards. and as a de-facto world standard. In spite of the
ten-year history of its operation in Australasia, some
stakeholders, and particularly mining professionals, are
sometimes not fully aware of the importance of the Code to their
activities and responsibilities, or that i t includes many features
which are o f positive benefit to their careers. This paper
examines the JORC Code from the perspective of one of those
stakeholder groups. the mining geologist, the professional who is
often at the cutting edge of Mineral Resource and Ore Reserve
estimation. I t has been prepared for the 4Ih International Mining
Geology Conference. Coolum, Queensland. May 2000.
I. FAuslMM. CPGeo. MMICA. Principal, P R Stephenson Pty Lid.
Consulting Geologists. PO Box 80s. Brndigo Vie 3552.
4th International Mining Geology Conference Coolurn. Old, 14 - 17 May1 2000
The author is Chairman of the Joint Ore Reserves Committee.
but the views expressed in this paper are his own and should not
be taken as official guidance from JORC. The paper includes a
number of quotes from the 1999 JORC Code and extracts from
the 1999 Australian Stock Exchange (‘ASX’) listing rules. While
care has been taken to ensure that the quotes and extracts are
accurate, readers should refer to the original documents for
authoritative information.
BRIEF HISTORY OF JORC CODE
The following description is a brief summary of the history of the
JORC Code. For more details. readers are referred to Stephenson
and Miskelly, 1999. Stephenson and Miskelly, 1997 and
Stephenson and Glasson. 1992.
The first edition of the JOKC Code was released in 1989. but
the Committee itself originated in 1971. following public,
industry and regulatory concern with unacceptable reporting
practices associated with the nickel boom and bust in Western
Australia in the late- 1960s. Essentially, JORC was formed
because regulators hinted that unless the mining industry
developed appropriate reporting standards, they (the regulators)
would do so instead. Recognising the warning signs, the
Australian Mining Industry Council (‘AMIC’), now the Minerals
Council of Australia (‘MCA), established a committee to
examine the issue. It was promptly joined by The Australasian
Institute of Mining and Metallurgy (‘The AuslMM’), resulting in
the formation of the Australasian Joint Ore Reserves Committee
(‘JORC’). The Australian Institute of Geoscientists (‘AIG’)
became JORC’s third parent body in 1992.
Between 1972 and 1985, a number of reports were issued by
JOKC which made recommendations on public reporting and
Ore Reserve classification and which gradually developed the
principles now incorporated in the JORC Code. The
recornmendations had the status of guidelines only, but were,
over time, gradually adopted by most Australasian mining and
exploration companies. I t is worth noting that the core concept
on which the Code is built, the Competent Person. was
introduced in JORC’s first publication in 1972.
During this period, two key non-JORC documents were
published which had a fundamental effect on the development of
the JORC Code. In 1980. the US Geological Survey released a
document entitled ‘Principles of u ResourcdReserve
Classificarionfor Minerals’ (US Bureau of Mines and the US
Geological Survey, 1980, commonly known as ‘Circular 83 1’),
in which, for the first time, a clear division bctween Resources.
representing in situ material, and Reserves, representing
economically extractable material, was presented. Two years
later, Conzinc Riotinto Australia Ltd (‘CRA’) released a seminal
document. entitled ‘ A Guide to rhe Understanding of Ore
Reserve Estimation’ (King, McMahon and Butjor, 1982). which
set out many of the concepts which now underpin the Code.
Following two years of review, JORC issued. in February
1989, the first version of the JOKC Code (Joint Committee of
The Australasian Institute of Mining and Metallurgy and
Australian Mining Industry Council, 1989). Apart from updating
and improving previous documents, this publication differed
from those preceding in two critical ways. It was immediately
incorporated into ASX listing rules. thereby becoming binding
o n companies listed on the ASX. It was also immediately
157
P K STEPHENSON
adopted by The AuslMM as an Institute Code, and therefore
became binding on members of The AuslMM. Through these
processes. it became mandatory for both individuals and
companies to conform with the Code, and this has been the
dominant factor underpinning its success. It was adopted as an
AIG Code in 1992 and, in the same year, was incorporated into
New Zealand Stock Exchange (‘NZSE’) listing rules.
Guidelines to the Code were published in 1990 and the two
documents were revised and released in a combined form in
1992 (Joint Committee of The Australasian Institute of Mining
and Metallurgy, Australian Institute of Geoscientists and
Minerals Council of Australia, 1992). In 1993, an Appendix
covering diamond reporting was issued and in 1996, the JORC
Code was again slightly revised, incorporating the Diamond
Appendix and changing the term ‘Pre-Resource Mineralisation’
to ‘exploration results’, with restrictions on its use (Joint
Committee of The Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Minerals
Council of Australia, 1996). A major revision was completed in
early-1999, and the 1999 edition of the JORC Code became
effective in September 1999 (Joint Committee of The
Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of Australia,
1999).
MAIN DIFFERENCES BETWEEN 1996 AND 1999
CODES
The 1999 revision of the JORC Code, which had over ten
person-years of committee and industry input, was major, but
none of the modifications materially altered the fundamentals of
the Code. The main changes were:
introduction of a clause (Clause 4) covering the underlying
principles of the JORC Code, those being Transparency,
Materiality and Competence;
adjustments to the definitions of ‘Mineral Resource’,
‘Measured Mineral Resource’, ‘Indicated Mineral Resource’,
‘Inferred Mineral Resource’, ‘Ore Reserve’, ‘Proved Ore
Reserve’ and ‘Probable Ore Reserve’ to reflect agreements
reached between organisations participating in an initiative
by the Council for Mining and Metallurgical Institutions
(‘CMMI’) to develop international standard Resource/
Reserve definitions (Miskelly, 1997);
recognition that Measured Mineral Resources may, in certain
circumstances, be convertible to Probable Ore Reserves;
improvements to the definition of a Competent Person to
make it more clearly applicable to those estimating Ore
Reserves as well as those estimating Mineral Resources;
adjustment to the provision for public reports to fairly reflect
documentation prepared by Competent Persons, in order to
maintain compatibility with the 1999 ASX listing rules
which were modified to remove a previous inconsistency
(this is dealt with more fully later in the paper);
expansion of Table 1 to include a check list for the reporting
of exploration results and to provide a more comprehensive
check list for the reporting of Mineral Resources and Ore
Reserves;
clarification of the types of reports covered by the JORC
Code;
simplification of the section on coal reporting by the
insertion of several coal-specific clauses rather than the
inclusion of a separate Coal Code which formed an appendix
in previous editions of the Code;
simplification of diamond reporting requirements by
incorporation of diamond-specific clauses into the main body
of the Code, rather than listing them as a separate section,
thus removing duplicated and superfluous text;
-
Coolurn. Old, 14 17 May1 2000
strengthening of the provision to explain whethcr Mineral
Resources have been reported inclusive of. or additional to.
Ore Reserves; now a mandatory requirement;
merging of the Code and Guidelines into a single document
in order to make it more concise and user-friendly. with
guideline notes appearing indented and in a dillerent type
face to Code clauses immediately alter the clauses to which
they refer.
In addition to these changes, the ASX introduced in its I999
listing rules the concept of the ‘recognised mining professional’
(refer to Appendix I). In brief, this allows a company reporting
to the ASX on Resources or Reserves for an overseas deposit. to
base the report on documentation prepared by a person who does
not qualify as a Competent Person because he or she is not a
Member or Fellow of The AuslMM or AIG (but who would
qualify in terms of relevant experience). as long as that person is
a member of a recognised overseas professional body that has
agreed to sanction the person if he or she does not comply with
the JORC Code.
THE 1999 JORC CODE AND THE MINING
GEOLOGIST
So what does the JORC Code mean to today’s mining
geologists? What is its relevance to their functions and
responsibilities? In brief, for those mining geologists involved in
ResourcelReserve estimation, its role and importance is
fundamental to their activities. It is a key regulatory standard,
through its incorporation into stock exchange listing rules. and it
therefore has legal ramifications. The Corporations Law requires
a listed company to comply with the ASX listing rules, thereby
indirectly giving these rules and the JORC Code the force of law.
The JORC Code is also the mining industry’s accepted standard
in this field, having been adopted as a Code by The AuslMM and
AIG and accepted as a contribution to best practice by other key
organisations. It is therefore of vital importance to mining
geologists’ professional interests and they should be thoroughly
familiar with its content and implications.
The main aspects of the 1999 JORC Code relevant to mining
professionals are summarised below, and are expanded upon in
sections following. However, as an introductory comment. the
author urges all mining geologists and Competent Persons to
read the 1999 Code, carefully, from beginning to end. Many
users of the Code may have read an earlier edition. and have
assumed that the 1999 Code contains nothing new of relevance to
them. This would be an incorrect assumption, as this paper will
show. Others have probably filed it without any intention of
examining it, a very unwise move. It takes less than an hour to
read the Code from front to back, a worthwhile investment of
time given its importance to the industry and to professionals
practicing in the industry.
Briefly, the JORC Code, in relation to mining professionals:
establishes minimum standards for the public reporting of
Mineral Resources and Ore Reserves which are binding on
members of The AuslMM and AIG and on companies listed
on the ASX and N E E ;
establishes a framework for the classification of Resources
and Reserves;
requires that public reports are based on documentation
prepared by a Competent Person (often, in a mine situation, a
mine geologist);
empowers the Competent Person to influence the content of
public reports based on their documentation;
if followed with diligence and honesty, provides a measure of
due diligence protection to the Competent Person and
company in the event of litigation arising from such public
reports (a point often not appreciated);
4th International Mining Geology Conference

provides a comprehensive check list and guidance notes to
assist the Competent Person in preparing and reporting
exploration results and ResourcelReserve estimates.
In short, the JOKC Code is a mixture of minimum standards,
mandatory provisions. empowerment. protection and guidance.
And all in 16 pages!
Standards: minimum standards for public reporting
l h e whole of the Code is the minimum standard for public
reporting of exploration results, Mineral Resources and Ore
Reserves in Australasia. To the extent that a mining geologist’s
activities result in, or affect, a public report on these matters, it is
therefore essential that he or she is thoroughly familiar with the
Code and with the relevant ASX or NZSE listing rules. An
extract from the current (September 1999) ASX listing rules
which relate specifically to mining and exploration activities is
attached as Appendix I .
Company Directors, not Competent Persons, take
responsibility for public releases of information. However, i t may
he necessary under ASX listing rules and Clause 8 of the JORC
Code for listed companies to obtain the approval of Competent
Persons in respect of public releases based on their
RcsourcelReservc estimates (discussed later). Competent Persons
should, therefore. be aware of certain specific requirements of
the Code covering such public releases. The more important of
these are:
puhlic releases on Resources and Reserves may use only the
terms specified in the Code (Clause 12);
public releases include, but are not limited to, company
Annual Reports, quarterly reports and other reports to the
ASX or NZSE or required by law; the Code is also a
recommended standard for other reports such as
environmental statements; Information Memoranda; Expert
Keports and technical papers in respect of reporting on
exploration results. Mineral Kesources or Ore Reserves, if
they have been prepared for the purpose of informing
investors or potential investors: (guidelines to Clause 5);
the Code encourages the concept of team responsibility in
both Mineral Resource and Ore Reserve estimation, and
recommends that, where there is a clear division of
responsibilities within a team. separate Competent Persons
should accept responsibility for their particular contributions
(guidelines to Clause IO);
if a Competent Person ‘signs off’ a Mineral Resource or Ore
Reserve estimate prepared by a person who does not qualify
as a Competent Person under the Code, he or she should
appreciate that they are accepting full responsibility for the
estimate and supporting documentation under ASX or NZSE
listing rules and should not treat the procedure merely as a
‘rubber-stamping’ exercise (guidelines to Clause IO);
there are specific requirements when publicly reporting on
diamonds (Clauses 19.27.36) and coal (Clauses 37 to 40)
estimates of tonnage and average grade must not be assigned
when reporting exploration results which are not part of a
Resource or Reserve estimate (Clause 17);
a Mineral Resource, by definition, must have ‘reasonable
prospects for eventual economic extraction’; this requires
preliminary judgements by the Competent Person(s) in
relation to such factors as a lower cut-off grade and minimum
mining parameters (guidelines to Clause 20);
Mineral Resource and Ore Reserve classification is the
responsibility of the Competent Person (Clauses 24 and 32);
public reports of tonnage and grade figures should be
rounded t o rellect the order of accuracy of the estimates
(Clauses 2.5 and 33):
4th International Mining Geology Conference Coolurn. Old, 14
THE 1999 JORC CODE
public reports of Mineral Resources and Ore Reserves must
subdivide the estimates into the appropriate categories, and
these categories must not be reported in a combined form
unless details for the individual categories are also provided;
estimates must not be reported in terms of contained metal or
mineral content unless corresponding tonnages and grades
are also presented; Mineral Resources must not be
aggregated with Ore Reserves (Clauses 26 and 34);
any matters relating to criteria listed in Table I which might
materially affect a reader’s appreciation of public reports on
exploration results. Mineral Resources or Ore Reserves must
be included in public reports (Clauses 18.27 and 36);
if Resource or Reserve estimates are reported after allowing
for adjustments such as cutting of high grades. or factoring
based on reconciliation with mill or other data; this should be
clearly stated in a public report and the nature of the
adjustment or modification described (Clause 27);
in situations where figures for both Mineral Resources and
Ore Reserves are reported, a clarifying statement must be
included in the report which clearly indicates whether the
Mineral Kesources are inclusive of, or additional to the Ore
Reserves (Clause 35);
if a Competent Person prepares documentation for internal
company purposes that does no1 comply with the JORC
Code, the documentation should include a statement that it
does not comply with the Code. in order to minimise the
likelihood of non-complying documentation being used as a
basis for public reports (guidelines to Clause 5 ) .
In addition, ASX listing rules require the Competent Person(s),
on whose work the public report of Mineral Resources or Ore
Reserves is based, to be named in the report. The report or
attached statement must say that the pcrson consents to the
inclusion in the report of the matters based on their information
in the form and context in which i t appears, and must ineludc the
name of the person’s firm or employer if that person is not a
full-time employee of the reporting entity (ASX listing rules 5.12
and 5.13).
One way of illustrating how the JORC Code should. and
should not be used in public reporting is by hypothetical
examples of inappropriate reporting. Three such examples. taken
from Stephenson and Miskelly, 1999, are presented in Appendix
2. They are simplified and exaggerated in order to help get the
message across, but all are based largely on real public reports
released in Australia in the last ten years.
Classification: framework for classification of Mineral
Resources and Ore Reserves
Figure 1 of the Code depicts graphically the terms and categories
used in the Code and the inter-relationship between these
categories. The concept of Mineral Kesources as the pre-cursor
to Ore Reserves is now well accepted in Australasia and in most
western countries. although i t is a relatively recent development
in the history of the world mining industry, having first been
introduced in Circular 831 of the USA Geological Survey/USA
Bureau of Mines in 1980 (although JORC was the first to apply
the concept to individual companies and deposits).
As previously mentioned, it is important to appreciate that a
Mineral Resource is not ‘an inventoq of all mineralisarion
drilled or sampled, regardless or cut-off grade, likefy mining
dimensions. locution or continuity’, to quote from the guideline
to Clause 20. It is a ‘redistic invenlory of mineralisation which.
under assumed and justijable technical and economic
condirions, miglir, in whole or in parr. become economically
exrracrable’. The reason for applying preliminary economic
criteria at the Resource stage is that the JOKC Code is a
primarily a document which specifies standards for reporting to
the public. The public, when presented with an estimate of
- 17 May1 2000 159
P R STEPHENSON
tonnes and grade, must have confidence that the figures represent
material which has either been shown to be economically
extractable (Ore Reserves) or which may reasonably be expected
to become economically extractable (Mineral Resources). While
a company may, for its own internal purposes, prepare estimates
based on cut-off grades or minimum mining dimensions well
below any likely to apply in practice, the public release of such
estimates could be extremely misleading in terms of potential
economic viability.
Prior to a company acquiring sufficient data on a deposit, or
having sufficient confidence in geological and/or grade
continuity to classify any tonnagdgrade estimates as at least
Inferred Resources. information may only be reported under
'exploration results' (Clauses 17 to 19). At this stage, reporting
of tonnagelgrade estimates are prohibited, although this docs not
restrict a company from providing indications of its exploration
targets or exploration potential. Any tonnage/grade figures
mentioned in this context must be clearly order-of-magnitude
and conceptual in nature and expressed so as not to misrepresent
them as an estimate of Mineral Kesources or Ore Reserves
(Clause 17).
The conversion from Mineral Kesources to Ore Reserves is
achieved by considering and applying a number of relevant
technical and economic factors. listed in the Code as mining,
metallurgical, economic, marketing, legal, environmental, social
and governmental. This would usually be undertaken as part of a
feasibility study. However. the Code has been de!iberately
non-specific in specifying the level of study required to convert
Resources to Reserves, since this may vary according to the
company, commodity, and technical/economic circumstances (in
addition, there currently appears to be no accepted definitions in
the industry for the varying levels of feasibility studies). As long
as the study is sufficiently rigorous to 'demonstrate at the time of
reporting that exfraction could reasonably be justified (Clause
29, definition of Ore Reserve), the conversion would be in
accordance with the Code.
Exploration Results
Mineral Resources
Inferred
Increasing level of
geological
i b Probable
knowledge and
confidence i
i
Indicated
Measured 4
4"......'""
1
!.........I ..-. ......"..........._^-I._."
Consideration of mining, metallurgical, economic, marketing,
legal, environmental, social and governmental factors
(the 'modifying factors')
FIG 1 - 1999 JORC Code
General Relationship between exploration results, Mineral Resources and Ore Reserves.
Coolum, Old, 14
Deciding between classifications
Classification requires the Competent Persons to consider many
factors. and it is easy to lose sight of reality or common sense in
such a situation. A technique which mining geologists may find
useful in focusing the mind when making classification decisions
is to try to imagine the effect which additional sampling data
(usually infill drilling) might have on the tonnage, grade, shape
and location of the mineralised bodies (Stephenson, 1995;
Stephenson and Stoker, 1999).
For example, if it is felt that closer drilling or sampling would
not greatly affect the geological interpretation andor confidence
in grade distribution, or even if it could affect the interpretation
or grade distribution. would not result in a significantly different
estimate of tonnage, grade. shape and location of the mineralised
bodies, then (assuming that the quality of the data on which the
estimate is based is acceptable) the particular section of the
deposit under question can probably be classified as Measured.
A similar approach can be taken in deciding between Indicated
Resources and Inferred Resources. If it is thought that additional
drilling or sampling could significantly affect the shape and/or
distribution of the mineralised zones, but not substantially affect
the tonnage-grade estimate, then the portion of the deposit in
question can probably be classified as Indicated. An even more
basic approach to this decision can also be used. If the
Competent Person has sufficient confidence in the Resource
estimate for it to be used for decisive mine planning and for
investment decisions, then i t probably meets the requirements for
Indicated Resources, and the Competent Person has probably. in
effect, intuitively classified it accordingly. I f he or she does not
have sufficient confidence for the estimate to be used for these
purposes, it should probably be classified as Inferred.
The most important criterion to be considered in separating
mineralisation at the exploration results stage from Inferred
Kesources relates to assumptions regarding continuity.
Continuity has two components - continuity of geology and
continuity of metal values (Sinclair and VallCe, 1994). At the
Ore Reserves
-.-.....-.+ 1
.._-.."..'_...+- ._C..---'-
b Proved II
-
..._..--.-..-.----- .."....." ...-. ".......""i
~ 17 May1 2000 4th InternationalMining Geology Conference

exploration results stage. the author suggests that there would
usually be doubts as to assumptions that could be made with
respect to both of these components due to the sparsity and/or
quality of data. At the Inferred Kesource stage, there would
usually be some confidence in assumptions of geological
continuity but possibly sonic doubts regarding assumptions of
continuity of metal values, and possibly other concerns of a
technical nature. In both situations there must bc sufficient
sampling data available on which to base the judgement of
continuity.
Inferred ,Mineral Kesources may also reasonably be estimated
on the basis of little or no sampling data where the mineralisation
being considered covers limited extensions beyond identified
Indicated and/or Measured Mineral Resources. Knowledge of the
adjoining Resources would usually be suflicient to support such
estimates of Inferred Resources. It is important to keep any such
extensions to reasonable extrapolations which can be clearly
supported by the ad.joining data.
An important point to bear in mind when classifying Mineral
Resource and Ore Kescrve estimates is that there is nothing i n
the JOKC Code which requires classification to be a complicated
process. or to be bascd on a particular procedure such as, for
example. the use of statistical data available from a block model
estimation method. Increasingly practitioners in the industry
appear to becoming fixed on the latter process as if it was
somehow mandatory or the only acceptable approach. In
addition. translating such detailed computational data directly
into Mineral Resource or Ore Keserve categories without the
application of over-riding judgements by the competent Person
can result. and to the author’s knowledge has resulted, in
erroneous or even nonsensical classifications with all the serious
consequences which can flow from misunderstanding the
confidence with which the Kesource and Keserve estimates arc
known.
As long as classification is carried out by Competent Persons
and as long as they take into account relative confidence in
tonnagdgrade computations, confidence in continuity of geology
and mctal values, and the quality, quantity and distribution of the
data on which the Mineral Kesource or Ore Keserve estimate is
bascd, the resulting classilkation. however i t is done, should bc
acceptable and in accordance with the JORC Code.
Competent Person: requirement that public reports
are based on documentation prepared by a Competent
Person
As previously mentioned, the concept of the Competent Person
has been a core principle of JORC documents since 1972. The
requirement for professional experience and competence in
I<esource/Reserve estimation, combined with accountability and
a clear separation of responsibilities between professionals and
company directors, gives the Code the flexibility to be applicable
to a wide range of commodities and situations without the need
to become unreasonably prescriptive.
The reasoning behind the Competent Person concept is that the
puhlic must have confidence that tonnagelgrade estimates
presented to them have been professionally compiled, are
soundly based and represent mineralisation that either has been
shown, or has a reasonable prospcct of being shown. to be
economically exploitable. Directors take responsibility for any
such public statements, but. as most mining geologists would
know, Kesource/Keserve estimation requires a combination of
knowledge, experience, science and art which would rarely be
found on the Hoards of most mining and exploration companies.
Hence the requirement for the involvement of Competent
Persons and for the competent Person to have ‘a minitnum offive
years experience which is relevant to the style of niineralisntion
und type of deposit under consideration and to the activity which
thnt person i.v unrfertaking’ (Clause I O of the I999 Code).
4th International Mining Geology Conference Coolurn. Qld, 14 - 17 May1 2000
THE 1999 JORC CODE
One of the improvements made in the 1999 revision of the
Code was to amend the definition of a Competent Person (Clause
IO) to refer to Ore Reserves as well as to Mineral Resources. In
addition, the guidelines to Clause I O state that Ore Reserve
estimation is almost always a team effort, with mining engineers
usually occupying the pivotal role. This is an important
clarification for mining geologists, as i t has been common
practice in the past (and perhaps still is) for geologists to be
expected or required to sign off Ore Kescrve estimates as well as
Mineral Resource estimates, even though the conversion from
Resources to Reserves involves mainly mining-related decisions.
Given the serious responsibilities attached to acting as
Competent Persons, geologists should be careful to ensure that
they have the required qualifications and experience to accept
liability for Ore Reserves estimates. If in doubt, they should
decline to sign and should encourage those with the requisite
experience, usually mining engineers, to accept responsibility.
The Corporations Law requires a listed company to comply
with the ASX listing rules (which incorporate the JORC Code).
and failure to comply can have legal consequences for the
company. Any internal company reports which support public
reports may become ‘discoverable’ in the event of litigation
arising from such public reports; that is, they may become part of
court evidence. It therefore behoves mining geologists preparing
internal ResourcelRescrve reports to ensure that such
documentation is prepared to the highest standards. As a
consultant who has been involved in expert witness activities in
litigation, the author can assure readers that it can be an
unnerving experience for a professional to have to defend his or
her actions in the witness box, and this experience can be
extremely demoralising if the work they arc having to defend is
sub-standard or sloppy. Regardless of the outcome of the
litigation, any such public questioning of a Competent Person’s
competence or professionalism can have damaging consequences
for that person’s reputation and employability.
In any event, since a mining company’s Mineral Resources and
Ore Reserves are its fundamental asset, and are often the basis on
which debt finance is raised, it should simply be standard
practice that internal docurnentation is prepared to high standards
with a full audit trail. Nothing is more frustrating to a
ResourcdReserve auditor than an inability to follow the practices
and procedures employed in the estimation process. If this
frustration leads to costly delays, a requirement for additional
(otherwise unnecessary) work or to the bank declining finance,
the mining geologist’s employer is not likely to be amused.
Competent Person accountability
The Code gives Competent Persons freedom to use their
experience to decide appropriate estimation and classification
approaches, and provides extensive guidance. This system is
likely to be effective only if the Competent Persons can be made
to account for their actions. In Australasia, obligatory
membership of either The AuslMM or AIG provides the
mechanism by which Competent Persons can be brought to
account, since both organisations are national professional bodies
which have effective and enforced codes of ethics. There is no
doubt that this requirement has been instrumental in achieving
high standards of reporting in Australasia. There have been
instances in which the Ethics Committees of The AuslMM or
AIG have investigated complaints made in respect of reporting
by ‘Competent Persons’ and action has been taken when deemed
justified. Such action would not have been possible if the
person(s) concerned had not been members of The AuslMM or
AIG.
Overseas, other national Ore Reserve committees have
introduced. or arc introducing. similar accountability provisions
161
P R STEPHENSON
for qualified professionals. Although the means of enforcing this
accountability may vary from country to country due to different
regulatory and professional regimes, the principle is accepted as
fundamental to cffccrive reporting codes. International
negotiations in the challenging area of reciprocal recognition of
Competent Persons across international boundaries have been
underway for some time, and encouraging progress is bcing
made. The introduction of the ‘rccognised mining professional’
by the ASX in its 1999 listing rules will assist some companies
with overseas deposits to report more easily in Australia, while
maintaining the strict qualification requirements which apply to
Competent Persons.
Competent Person empowerment: the rights and
responsibilities of Competent Persons to influence the
content of public reports based on their documentation
In the 1996 ASX listing rules, there was a difference between the
treatment of the competent Person as a consultant and the
Competent Person as a company employee. If a Competent
Person was a consultant, the company had to obtain his or her
written approval to the release of a public report which included
information based on the competent Person’s work. However, if
the Competent Person was an employee of the reporting
company, no such approval was necessary. It was only required
that the public report fairly reflect the Competent Person’s work.
JORC identified this inconsistency during the revision of the
1996 Code and brought it to the attention of the ASX. The ASX
rectified the situation and the relevant 1999 listing rule (5.13)
now states:
‘The person referred to in rules 5. I O and 5. I I
who compiles the information must consent in
writing to the inclusion in the report of the
matters based on the information in the form and
context in which it appears. The report or
attached statement must stute that the person
consents. contain the name of the person and, if
the person is not a full-time employee of the
entity. the name of the person’s jirm or
company ’.
Clause 8 of the 1999 JORC Code reflects this listing rule
change.
This change was a significant strengthening of Competent
Persons’ rights. They are now empowered to materially
influence public reports based on documentation prepared or
supervised by them, and to ensure that such public reports do not
misrepresent their work. However, with rights come
responsibilities. Mining geologists who act as Competent
Persons should ensure that their companies are aware of this
listing rule provision and should exercise their right to review
public reports based on their work. In the event of litigation
arising from such public reports, it would be in Competent
Persons’ interests to be able to demonstrate that they took
reasonable steps to exercise [his right.
Competent Person protection: the role of the JORC
Code in providing due diligence protection
It is often not appreciated that the JORC Code is not just a
document setting out minimum standards for reporting and
providing extensive guidelines for estimating, classifying and
reporting. It is also an invaluable tool for a due diligence
defence, as is the VALMIN Code with respect to assessment and
valuation of mining and exploration properties (Lawrence,
Hancock and Dewar, 1995). The JORC Code represents industry
best practice in Australasia in the field of public reporting of
exploration results, Mineral Resources and Ore Reserves. If
162 Coolurn. Qld. 14
professionalslCompetent Persons. such as mining geologists.
involved in these fields diligently and honestly comply with the
JORC Code and ASX (or NZSE) listing rules to the hest 01‘ their
ability when preparing docurnentation which will form the basis
of a public report, they will have provided themselves with a
strong due diligence defence in the unfortunate event that
litigation arises or is threatened as a result of the public report.
Competent Person guidance: the JORC Code as a
guide to good practice
As has been previously mentioned. the JOKC Code does not
constrain Competent Persons in terms of the technical procedures
and practices involved in the preparation of Mineral Resource
and Ore Reserve estimates. In respect of such matters, i t leaves
Competent Persons free to exercise their professional judgement
as to the best techniques and methods to apply in their particular
circumstances. However, the Code is not silent on this issue.
Throughout the Code, but particularly in Table I . extensive
guidance is provided on matters which should be taken into
account in the reporting of exploration results. Mineral
Resources and Ore Reserves, and in the estimation of Resources
and Reserves.
Table I in the 1999 Code is a major expansion of the same
table in previous versions of the Code, and was revised with
considerable industry input. It is subdivided into five sections:
Sampling techniques and data
Reporting of exploration results
Estimation and reporting of Mineral Resources
Estimation and reporting of Ore Reserves
Estimation and reporting of diamond mineralisation.
It has the following introductory comment: ‘Thr order and
grouping of criteria in Table I reflects the normal systematic
approach to exploration and evaluation. Criteria in the first
group ‘Sampling Techniques and Data’ apply to all succeeding
groups. In the remainder of the table, criteria listed in preceding
groups would often apply to succeeding groups and should be
considered when estimating and reporting’.
The Table is described as a Check List of Assessment and
Reporting Criteria, and it provides an invaluable list of criteria
for the mining geologist and others involved in the relevant fields
to use when preparing and reporting exploration results, Mineral
Resources and Ore Keserves. Thc author himself uses it as a
check list when he undertakes audits and due diligence reviews.
All definitions and key clauses in the Code have
accompanying guidance notes to assist in their interpretation.
These are important and should be read by all those involved in
Resource/Keserve estimation. Several are worthy of special
attention by mining geologists acting as competent Persons
(some of these have been mentioned previously in this paper, but
bear repeating):
0 ‘As a general guide, persons being called upon to act as
Competent Persons should be clearly satisfied in their own
minds that they could face their peers and demonstrate
competence in the commodity, type of deposit and situation
under consideration. If doubt exists. the person should either
seek opinions from other colleagues or should decline io uct
as a Competent Person’(guide1ine to Clause IO, definition of
a Competent Person);
’The Competent Person or Persons undertaking this activity
(signing off a Resource/Reserve report prepared by others)
should appreciate that they are accepting full responsibility
for the estimate and supporting documentation under ASX or
NZSE listing rules and should not treat the procedure merely
as a ‘rubber-stamping’ exercise’ (guideline to Clause 10,
definition of a Competent Person);
- 17 May1 2000 4th International Mining Geology Conference

‘The tertii ‘reasonable prospects for eventual economic
extruction ’ implies N judgement (albeit preliminary) by rhe
Competent Person in respect of the tecliriical and economic
fiictors likely to influence the prospect of economic
exirac-tion. including the approximate mining parameters. In
other words. a Mineral Hesource is not an inventory of all
tninerulisation drilled or sampled% regardless of cut-off
grade. likely mining dimensions. location or continuity. It is a
realistic inventoc of mineralisation which, under assumed
mid justifiable technical and economic conditions, might, in
whole or in purt, become economically extractable’
(guideline to Clause 20, definition of a Mineral Resource);
‘Interprctation of the word ‘eventual’ in this context may vary
depending on tlie commodity or mineral involved. For
exutnple, for many coal, iron ore. bauxite and other hulk
minerals or commodities, it may be reasonable to envisage
‘eventuul economic extraction’ as covering time periods in
excess of 50 years. However for the majority of gold
deposit.v. application of the concept would normally he
restricted to perhaps 20 to 30 years. and frequently to much
shorter periods of tittie’(guideline to Clause 20, definition of
a Mineral Kesourcc);
‘Mineral Hesource or Ore Heserve estimates are sometimes
reported after adjustment by cutting of high grades, or after
tlie application of modiyying factors arising from
If
reconciliation with mill data. any of the data are materially
adjusted or modified for ihe purpose oJ making the eslimate,
or if the estimate is subsequently adjusted. this should he
clearly stated in a Public Report of Mineral Resources or
Ore Heserves and the nature of the adjustment or
modijication descrihed’(guide1ine to Clause 27);
‘The term ‘economic’ implies that extraction of the Ore
Heserve has been established or analytically demonstrated to
he vinble and justifiable under reasonable investment
assumptions. The term ‘Ore Reserve need not necessarily
signify that extraction facilities are in place or operative or
ihai a11 governmen tnl approvals have been received. It does
signify that there are reasonable expectations of such
approvals’ (guideline to Clause 29, definition of an Ore
Reserve).
CONCLUSION
For all mining professionals. but particularly for geologists
involved in Mineral Resource and/or Ore Reserve estimation, the
1999 JOKC C o d e is a very important document.
I t is a minimum standard for public reporting, with which the
ASX and N Z S E require compliance.
I t is a C o d e which has been adopted by both The AuslMM
and the AIG, and which is therefore binding o n the majority
of professionals in Australasia.
It is a source of extensive guidance o n matters to be taken
into account in Rcsourcc/Reserve estimation and reporting of
exploration results, Resources and Reserves.
I t provides professionals with a strong d u e diligence defence
at law if followed with care and honesty.
Close familiarity with the J O R C Code should therefore be
mandatory for all mining geologists. This familiarity should be in
respect of the entire document, not just selected clauses.
Australia can bc proud that the JOKC Code is being used as a
model for national reporting standards in many countries and for
developing international standards. This is testament to the
robustness of the original concept established over 25 years ago,
to the commitment of JOKC’s parent bodies and the ASX. and to
the many hours of voluntary effort by members of J O R C and
contributors to revisions of the Code.
T h e J O R C Code is a dynamic document which will continue
to evolve to meet the needs of investors, companies,
professionals and regulators in the industry. This evolution is
4th International Mining Geology Conference Coolurn, Old. 14 - 17 May 2000
THE 1999 JORC CODE
greatly facilitated by the active participation of interested parties
such as the delegates to this mine geologists’ conference. T h e
Joint Committee welcomes all contributions, comments and
constructive criticisms, and will maintain its commitment to
keeping Australasian reporting standards at the forefront of
world best practice.
ACKNOWLEDGEMENTS
T h e author expresses his appreciation to M r N Miskelly, M s R
Phillips, M r D Nicholls and M r A Vigar, who kindly reviewed a
draft of the paper.
REFERENCES
Joint Committee of The Australasian Institute of Mining and Metallurgy
and Australian Mining Industry Council. 1989. Australasian Code
for Reporting of Identified Mineral Resources and Ore Reserves.
Joint Committee of The Australasian Institute of Mining and Metallurgy.
Australian Institute of Geoscientists and Minerals Council of
Australia. 1992. Australasian Code for Reporting of Identified
Mineral Resources and Ore Reserves.
Joint Committee of The Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals Council of
Australia. 1996. Australasian Code for Reporting of Identified
Mineral Resources and Ore Reserves.
Joint Committee of The Australxian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals Council of
Australia, 1999. Australasian Code for Reporting of Mineral
Resources and Ore Reserves.
King. H F, McMahon, D W and Butjor, G J. 1982. A Guide to the
Understanding of Ore Reserve FAtimation. Supplement t ( ~The
AuslMM Proceedings. No 281, March 1982.
Lawrence. M J, Hancock. R G and Dewar, G J A, 1995. The Due
Diligence Defence against Personal Liability for Consultants, in
Proceedings Ethics, Liability and the Technicul Expert. a joint
seminar sponsored by The Australasian Institute of Mining and
Metallurgy, Mineral Industry Consultants Association. New South
Wales Section of the Australian Mining and Petroleum Law
Association. Sydney, December 1995.
Miskelly. N. 1997. International Standard Definitions for Reporting of
Mineral Resources and Reserves, in Proceedings The Austrakusian
Gold Confrrence, K u l p o r l i e , 4-6 M u c h 1997.
Sinclair, A J. and Vallee. M, 1994. Reviewing Continuity: An Essential
Element of Quality Control for Deposit and Reserve Estimation. in
Explorution Mining Geology, 3(2):95- 108. (Canadian Institute of
Mining, Metallurgy and Petroleum).
Stephenson, P R and Glasson. K R, 1992. The History of Ore Reserve
Classification and Reporting in Australia, in Pmceedings AusIMM
1992 Annuul Conference. pp 121-125 (The Australasian Institute of
Mining and Metallurgy: Melbourne).
Stephenson, P R. 1995. Reporting using the ‘Australasian Code for
Reporting of Identified Mineral Resources and Ore Reserves’, in The
AusIMM Bulletin, No 2, March 1995. (The Australasian Institute of
Mining and Metallurgy: Melbourne).
Stephenson. P R and Miskelly. N, 199X. The JORC Code, 1987-1997, in
Geology of Australion und Pupuu New Guineun Minerul Deposits
( U s : D A Berkman and 1) H Mackenzie) pp 45-51 (The
Australa&m Institute of Mining and Metallurgy: Melbourne).
Stephenson, P R and Miskelly. N. 1999. Reporting Standards and the
JORC Code, in Pmceedings JORC Code Seminrrr. held as part of
Mining Week Victoria, November 1999. Melbourne (Victorian
Chamber of Mines and The Australasian Institute of Mining and
Metallurgy: Melbourne).
Stephenson. P R and Stoker, P T, 1999. Classification of Mineral
Resources and Ore Reserves. in Proceedings APCOM ‘99, Computer
Applicutions in rhe Minerul Industries. October 1999, Colorado
School of Mines, Denver. USA.
Stephenson, P R and Vann. 1, 1999. Common Sense and Good
Communication in Mineral Resource and Ore Reserve Estimation. in
Proceedings PACRIM ‘99. pp 435-43 I (The Australasian Institute of
Mining and Metallurgy: Melbourne).
US Bureau of Mines and the US Geological Survey, 1980. Principles of a
ResourcelReserve Classification for Minerals. Geological Survey
Circular 83 I .
163
 P R STEPHENSON

APPENDIX 1 Mining exploration entities and others

EXTRACT FROM AUSTRALIAN STOCK S.2 A +mining exploration entity, and an entity which has or
EXCHANGE LISTING RULES AS PUBLISHED whose +child entity has +acquired an interest in i i +mining
1 SEPTEMBER 1999+ tenement, must complete a report (consolidated if
applicable) concerning each quarter of its financial year and
CHAPTER 5 give it to ASX. It must do so no later than I month after the
end of the quarter. The report must include each of the
I Additional reporting on mining and exploration following.
activities Introduced 1/7/96 Origin. Listing Kule 3R(S) ;ind 3B(6)(d)
S.2. I Details of the exploration activities of thc entity or
group (including geophysical surveys), and a
TABLE
OF CONTENTS
- .- - summary of the expenditure incurred on those
I .~

T@ain
-

h g n g s X h Q chapter- -I-Jule?-; activities. If there has been no exploration activity.

that fact must he stated.
!.Whe!!port .- .- -- Introduced 1/7/96, Origin: Listing Rule 3M.5) and 3l%(6)(d)
. RequirenlenrsforFpo$ ~ .~ - 5.6 - 5.17- 5.2.2 Details of the mining production and development
' Terms o f a m i n i n g e n e m ~ j o i n @ n t u ~ activities o f the entity or group relating to mining,

I
,+
Australasian Code for Reporting of Mineral
Kesources and Ore Reserves (the JORC Code)
~~~

I Mining e>lora-in ent=quar!gy repom - __

~.1
Appendix SA
- -

I Appendix*
EXPLANATORY NOTE
This chapter sets out disclosure requirements additional to those
in chapter 3 (continuous disclosure) and chapter 4 (periodic
disclosure) that +mining entities and others must satisfy. A
+mining entity includes a +mining producing entity and a
+mining exploration entity.
Where indicated, other entities must comply with requirements
in this chapter. Usually the disclosure is required from an entity
which has, or whose +child entity has, +acquired an interest in a
+mining tenement.
Information for release to the market must be given to ASX's
+company announcements office.
J
mining exploration and related operations, and a
summary of the expenditure incurred on those
activities. If there has been no production or
development activity, that fact must be stated.
Introduced 1/7/96, Origin. Listing Kulc 3B(S) and 3R(6)(d)
5.2.3 If ASX asks, the +mining exploration entity, or
entity which has or whose subsidiary has
+acquired an interest in a +mining tenement, must
include each of the following items in each
quarterly report.
0 The location of +mining tenements held.
The location of +mining tenements +disposed of
during the quarter.
Beneficial percentage interests in farm-in or
farm-out agreements +acquired or +disposed of
during the quarter.
Introduced 1/7/96. Origin: Listing Rule 38(6).
Note: The obligation in h i s rule will apply to all quancrly repons
from the time when ASX asks until ASX no longer requires it.

WHEN TO REPORT
Mining producing entities and others
5.I A +mining producing entity. and any other entity that ASX
asks, must complete a report (consolidated if applicable)
concerning each quarter of its financial year and give it to
ASX. It must d o so no later than one month after the end of
the quarter. The report must include each of the following.
Introduced 1/7/96, Origin: Listing Rule 3B(S) and 3B(6)(d).
Mining exploration entity to complete Appendix 5B
(Quarterly report)
5.3 A +mining exploration entity must also complete Appendix
SB and give it to ASX. It must do so immcdiately the
information is available, and in any event within 1 month
after the end of each quarter of its financial year.
Introduced 1/7/96. Origin: Listing Rule 38(10).
5.4 Introduced 1/7/96, Origin: Listing Rule 3A(24). Deleted 1/7/98,

5.1. I Details of the mining production and development
activities of the entity or group relating to mining
and related operations, and a summary of the
expenditure incurred on those activities. If there
has been no production or development activity,
that fact must be stated.
Introduced 1/7/36. Origin: Listing Rule 38(5) and 3B(6)(d).
5.1.2 A summary of the exploration activities (including
geophysical surveys) of the entity or group, and a
summary of the expenditure incurred on those
activities. If there has been no exploration activity,
that fact must be stated.
Introduced 1/7/96, Origin: Listing Rule 38(5) and 3B(6)(d).
I 1/9/99.
t Notes by P R Stephenson. Appendix SA is the 1999 JORC Code.
Listing rules relating specifically to oil and gas have not been
included in these extracts, nor have all accompanying notes.
Interested readers are urged to obtain a full copy of the 1999 ASX
listing rules and should not rely on the accuracy of these extracts.
Note that the superscript '+' denotes a term defined in Chapter 19 of
the listing rules.
5.5 Introduced 1/7/96. Origin: Listing Rule 38(9B). Deleted 1/7/98.
REQUIREMENTS FOR REPORTS
Reports to comply with Appendix SA
5.6 A report prepared by a +mining entity, or an entity which
has or whose +child entity has an interest in a +mining
tenement, must be prepared in accordance with Appendix
SA if the report includes a statement relating to any of the
following.
Exploration results.
+Mineral resources or +ore reserves.
Introduced 1/7/36. Origin: Listing Rule 3C(5). 3M(13). (14). Amended
Note: This Nle also applies to statements i n the annual report. Paragraph 14
of the JORC Code says: '...A company must promptly report any material
changes in its Mineral Resources or Ore Reserves'. Paragraph 15 of h e
fORC Code says 'Companies must review and publicly repon on their
Mineral Kesourccs and Ore Reserves annually'. Rule 5.6 does not requirc
entities to comply w i h these paragraphs - it requires an entity to comply

164 Coolurn. Qld. 14 - 17 May1 2000 41h fnternalional Mining Geology Conference

with reqiiireinents of the JORC Code when i t d t ~ report.
s for example. under
n listing nile requirement As well as the rules in chpter S. other lisung NICS
that m:iy requiring reponing include rule 3.1
5.6.1 I-lowcver, an entity need not comply with
Appendix SA to the extent that i f rule 5.10 allows a
report to be based on information compiled by a
+recognised mining professional, the report need
not bc prepared by or under the direction of and
signed by a +competent person. The requirements
of Appendix SA applying to a +competent person
apply to the +recogniscd mining professional.
Introduced 1/9/99
Note. Paragriiph 9 of the JOKC Code says: 'Documentation
detailing Mineral Resources and Ore Rererves estimates from
which a Puhlic Report on Mineral Resources and Ore Reserves is
prepared. must be prepared by or kinder the direction of. and
signed by, n Competent Person or Persons'. 'The guidelines under
pragraph IO of the JOKC Code siiy that a listed entity with
overccx interests must nominate a competent person to take
rerponsihility for miner:il resource and ore reserve estimates and
the guideliner in Appendix I to the JORC Code include sample
statements relating to the person being a competent person
However. in the case of mineral resources and ore reserves not
located in Australia. listing rule 5.10 allows a recognised mining
professional (iis defined in the listing rules) instead of a
competent person (as defined in the JORC Code) to compile
inhrmotion.
Example: Paragraph 32 of the JORC Code requires a competent
person to approve categories o f ore reserves. If rule 5.10 allows a
report to be based on information compiled by a recognised
mining profesrional. the recognised mining professional must
approve the categories of ore reserve.
Content of reports
S.7 During the exploration stage, a report in the field of mineral
exploration must include the following information.
The type and method of sampling
The distribution, dimensions, assay results and relative
... ..
location of all relevant samples.
Cross reference: paragraph IS of Appendix 5A.
Any other relevant basic data.
Introduced If7/96. Origin. Listing Rule 3M(9)(b).
Note. 'l'liis rule applies to an entity which has. or whose child entity has.
;icquired an interest in a mining tenement.
5.7.1 I f true dimensions (particularly width of
mineralisation) are not stated in the report. an
appropriate qualification must be included.
Introduced 1/7/96, Origin: Listing Rule 3M(9)(h). Amended
1/7/98,
5.8 Assay results must be reported using one of the following
methods. The method used must he the most suitable
according to the entity's geologist or mining engineer and
must be stated.
Method I All assay results, with sample widths or size in
the case of bulk samples.
Method 2 The weighted average grade of the mineralised
zone. indicating clearly how the grade was
calculated. When high values are recorded, they
must be given in context, with full supporting
data.
Introduced 1f7/96 Origin: Listing Rule 3M(9)(d).
Note: This rule applies to an entity which has. or whose child entity has.
acquired an interest in a mining tenement.
5.9 During the +pre-hydrocarbon reserve stage, a report,
statement or assessment on +hydrocarbon exploration must
include the following information.
The depth of the zone tested
The age and, if appropriate, the rock type and formation
name of the zone tested.
Any liquids recovered.
4th International Mining Geology Conference Coolurn, Qld, 14 - 17 May 2000
THE 1999 JOKC CODE
The flow rate.
The choke size used during testing.
Any other relevant basic data.
Introduced 1/7/96. Origin: Listing Rule 3M(IO)(b).
No(e: 'This rule also applies to an entity which has. or whose child entity has.
acquired an interest in a well.
Competent person or recognised mining professional to
compile information about minerals
5.10 A report relating to an entity's +mineral resources or +ore
reserves. must be based on information compiled by a
+competent pcrson. However. if the resource or reserve is
not located in Australia, the report may be based on
information compiled by a +recognised mining
professional.
Introduced ln/06 Origin. Listing Rule 3M(7). Amended 1/9/09,
Note. 'This rule applies to an entity which has. or whose child entity has.
acquired an interest in a mining tenement.
5.10.1 The report must either state that it is based on the
information, or be accompanied by a Statement to
that effect signed in the same manner as the report.
Introduced 1/7/96. Origin: Listing Rule 3M(7).
5.10.2 If the report is based on information compiled by a
+recognised mining professional. i t must include
each of the following statements.
(a) A statement by the +recogniscd mining
professional that the report complies with
Appendix 5A (except paragraph 9).
(b) A statement by the entity that the person is a
+recognised mining professional and the
basis on which each of the requirements for a
+recogniscd mining professional are met.
Introduced 1/9/99.
Person compiling information about hydrocarbons
5.1 1 A report relating to an entity's +hydrocarbon reserves must
be based on information compiled by a person who has a
degree (or equivalent) in geology, geophysics. petroleum
engineering or a related discipline; is practising or teaching
geology, geophysics or petroleum engineering; and has
practised or taught one of them for at least five years.
Introduced 1/7/96, Origin: Listing Rule 3M(8). Amended 1/9/99.
Note: 'This rule also applies to an entity which has. or whose child entity has.
acquired an interest in a well.
5.1 1.1 The report must either state that it is based on the
information, or be accompanied by a statement to
that effect signed in the same manner as the report.
Introduced 1/7/96, Origin: listing Rule 3M(8).
Person compiling information to be identified
5.12 If the person referred to in rules 5.10 and 5.11 who
compiles the information is a full-time employee of the
entity, the report or attached statement must say so and
name the person.
Introduced 1/7/96, Origin: Listing Rule 3M(7) and 3M(8). Amended 1/9/99,
Note: 'This rule applies to an entity which has. or whose child entity has.
acquired an interest i n a mining tenement.
5 . I3 The person referred to in rules 5.10 and 5.1 1 who compiles
the information must consent in writing to the inclusion in
the report of the matters based on the information in the
form and context in which i t appears. The report or attached
statement must state that the person consents, contain the
name of the person and, if the person is not a full-time
employee of the entity, the name of the person's firm or
company.
Introduced 1/7/96, Origin: Listing Rule 3M(7) and IM(8). Amended 1/9/99.
165
P K STEPHENSON
Note This nile applies to an entity which h3s. or whose child entity has.
acquired an interest in a mining tenement.
Progress report on geophysical survey
5.14 A report on the progress of any geophysical survey must
include the name, nature and status of the survey, and the
permit under which the survey is being conducted.
Introduced 1/7\96. Origin: Listing Rule 3M(6).
Note: This rule also applies to 3n entity which has. or whose child entity has.
acquired an interest in a well.
Hydrocarbon reports
5.15 +Probable hydrocarbon reserves must only be reported in
conjunction with +proved hydrocarbon reserves. +Possible
hydrocarbon reserves must only be reported in conjunction
with +proved hydrocarbon reserves and +probable
hydrocarbon reserves.
Introduced 1/7/96 Origin. Definition of hydrocarbon reserves.
Note: l h i s rule also applies to an entity which has. or whose child entity has.
;icqiiired an interest in a well.
5.16 A report relating to the +pre-hydrocarbon reserve stage
must not use the word ‘reserves’ in isolation.
Introduced 1/7/96. Origin: Listing Rule 3M(IO)(a).
Note: This rule also applies to an entity which has. or whose child entity has,
acquired an interest in a well.
5.17 A report relating to the results of exploratory investigations
which have reached the stage where a +hydrocarbon
reserve can be estimated must use the expressions for
categories of +hydrocarbon reserves in the listing rules.
Introduced 1/7/96 Origin : Listing Kule 3M(12).
Note: This rule also applies to an entity which has. or whose child entity has.
acquired an interest In a well.
TERMS OF A MINING TENEMENT JOINT
VENTURE
5.18 An entity must not enter a joint venture agreement to
investigate or explore a +mining tenement, unless the
agreement provides that if the entity requires it the operator
will give the entity all the information the entity requires lo
comply with the Listing Rules; and that the information
may be given to ASX for releare to the market if neccssary
for the entity to comply with the listing rules.
Introduced 1/7/36 Origin Listing Rule 3M(4)
Cross reference N I 1~I
EXTRACT FROM CHAPTER 19 OF
1999 ASX LISTING RULES
INTERPRETATION AND DEFINITIONS
Definition of a ‘recognised mining professional’
Recognised mining professional
A person who has each of the following:
0 a degree or an overseas equivalent in geology. mining
engineering or a related discipline relevant to the estimation
of the type of mineral resource or ore reserve referred to in
the report.
at least five years experience in the estimation, assessment
and evaluation of the type of mineral resource or ore reserve
referred to in the report.
membership of a recognised overseas professional body that
has agreed to sanction the person if the person docs not
comply with Appendix SA.
Introduced I /9IW
166 Coolum. Old. 1 4 - 1 7 May 2000
APPENDIX 2
HYPOTHETICAL EXAMPLES OF
INAPPROPRIATE REPORTING UNDER THE JORC
CODE
Hypothetical Example 1
‘The Mineral Resources and Ore Reserves for the
‘Propitious ’ epithermal gold deposit are
presented in the above table. The Resources and
Reserves have been calculated in accordance
with the JORC Code by Mr V Sanguine, who has
had extensive experience in the coal and bauxite
mining industries. and who is a member o/ a
recognised professional association. Although
the Mineral Resources include a substan~ial
amount of Inferred Resources, the company has
great confidence that further drilling will prove
u p these Resources and has therefore included
them in Ore Reserve culculations ’.
Anulysis of non-compliance with the JOHC Code
1. There is no breakdown of the Mineral Resources and Ore
Reserves into component categories. This is one of the
most basic reporting requirements of the JORC Code. and
is particularly important in this case, because the report
states that a substantial proponion of the Resources are i n
the Inferred category which, by definition, is of low
confidence,
2. Mineral Resources have been added to Ore Reserves.
Mineral Resources and Ore Keserves are ‘apples’ and
‘pears’ and should never be added together.
3. The estimator would not qualify as a Competent Person
under the JORC Code. Mr Sanguine’s experience has been
in the coal and bauxite industries, and he would not,
therefore, meet the ‘relevant experience’ criteria of the
JORC Code. In addition, being a ‘member of a recognised
professional association’ is not sufficient to qualify as a
Competent Person in terms of the JORC Code, and may not
be sufficient to satisfy the ASX provision for a ‘recognised
mining professional’. The relevant ASX listing rule
requires that the professional body has agreed to sanction
the person if the person does not comply with JOKC Code.
4. The conversion of Inferred Resources to Ore Reserves is
not permitted under the Code. There is no Ore Reserve
equivalent of Inferred Mineral Resources in Australasia.
5. The statement that ‘the Resources and Reserves have been
calculated in accordance with the JORC Code’ is not
applicable. Resources and Reserves cannot be ‘calculated’
in accordance with the JORC Code, since it does not
4th International Mining Geology C o n f e r e n c e

regulate estimation techniques or procedures. I t establishes
;I system of Kesource/Reserve classification and sets
minimum standards for public reporting, so any such
statemcnt should refer to 'classified and reportcd' in
accordance with the Code. In addition, use of thc word
'calculated' in this context is inappropriate; 'estimated'
would be preferable.
Hypothetical Example 2
'The Geological Resources for the 'Flawless'
gold deposit are tabulated above. In addition to
these Resources. a fitrther 4.6 million ounces of
pre-resource mineralisation has been delineated.
The Company 's consulting geologist has
expressed reservations about the quality of the
drilling data on which these estiinates tire based.
however the Company is confident that these
problenis will be readily resolved'.
Analysis of non-compliance with the JORC Code
I. The tabulation presents only contained metal figures. The
1999 JORC Code does not permit reporting of contained
metal without corresponding tonnes (or volume) and grade
(in ihc 1996 Code, such reporting was strongly
discouraged). It is critically important that a reader is made
aware whether a quoted quantity of contained metal is the
product of a large tonnage of low grade material or of a
small tonnage of high grade material.
2. An estimate has been made of 'pre-resource
mineralisation'. The tcrm 'pre-resource mineralisation' was
deleted from the JORC Code in 1996 and replaced with
'exploration results', with a prohibition on the reporting of
tonnage/grade/contained metal figures. The only situation
in which reporting of tonnagdgrade figures not classified as
a Mineral Resource or Ore Reserve is permitted is in the
HYPOTHETICAL
EXAMPLE
4th International Mining Geology Conference
Coolum. Qld, 14 17 May 2000
THE 1999 JOKC CODE
context of a description of exploration targets or
exploration potential. in which case any figures mentioncd
must be clearly ordcr-of-magnitude and conceptual in
nature and expressed so as not to misrepresent them as an
estimate of Mineral Resources or Ore Reserves.
3. No information has been provided on the consulting
geologist's concerns with regard to the quality of the
drilling data. The Codc requires that a public report should
include information on any matters that might materially
affect a reader's understanding or interpretation of the
estimates being reported. and in particular on any mattcrs
which might significantly affect confidence in an estimate
of Mineral Resources or Ore Reserves.
4. The company has used the term 'Gcological Resources'
which has no meaning under the JORC Code.
5. There is no statement that the public report of' Mineral
Resources is based on information compiled by a
Competent Pcrson, nor is the Competent Person named.
These are specific requirements of Australian Stock
Exchange Listing Rules.
Hypothetical Example 3
See Table 'Hypothetical Example 3'.
'The Mineral Resources and Ore Reserves for the
'Congenial' copper mine in Outer Harmonia are
12 8S7 215 tonnes @ 1.382% copper, and I 605
527 tonnes @ 2.866% copper respectively (see
table below). Thefigures have been calculated b.y
Mr M Convivius, a member of the Harmonium
Institute of Engineers, Geologists and Tractor
Mechanics. The mine has a history of positive
reconciliation between Reserve estimates and
mill production, and so the Reserves have been
factored upwards'.
Analysis of non-compliance with the JOHC Code
1. The tabulation includes Possible Ore Reserves, a category
not recognised or permitted under the JORC Codc.
2. There is no statement as to whether the Mineral Resources
are reported inclusive of, or additional to, the Ore Reserves.
Thc 1999 Code rcquircs such a statement (the 1996 Code
strongly encouraged such practice).
3. Thcre is a very substantial difference between the tonnages
of Mineral Resources and the tonnages of Ore Reserves.
Where such large differences occur, the public report
should provide a brief explanation to assist the reader in
assessing the likelihood of the rcmaining Mineral
Resources eventually converting to Ore Resews.
3
-
167
P R STEPHENSON
4. Membership of the Harmonium Institute of Engineers,
Geologists and ‘Tractor Mechanics would not qualify Mr
Convivius to be a Competent Person under the JOKC Code.
In such a situation, and assuming that that Institute was not
able or willing to sanction Mr Convivius for
non-compliance with the JORC Code (a qualifying
requirement under the ASX’s ‘recognised mining
professional’ provision), the company must nominate a
Competent Person to review and sign off the Resource and
Reserve estimates.
168 Coolurn. Old. 14 . 17 May 2000
5. The tonnages and grades are given as very precise figures,
which is a poor and potentially misleading practice. I f
tonnages and grades are not rounded so as to reflect the
uncertainty surrounding their estimation, then an unrealistic
degree of accuracy is implied and unreasonable
expectations may be generated in the mind of the reader.
6. No information is given on how and by how much the Ore
Keserves have been adjusted to match mill performance.
4th InternationalMining Geology Conference
Resource Evaluation of Nuggety Slate-Hosted Gold-Quartz Reefs
S C Dominy', B W Cuffley2, G F Johansen3, A E Annels4 and I M Platten'

ABSTRACT tonnages of a single reef ranging from small ( 4 1 M I ) to large

Nuggety gold-quartz reefs are characterised by localised. high-grades and
i n many cases coarse free-gold. Geometrical and grade complexities are
often observed. The high-grade regions are generally erratic and have a
low continuity; though may make the deposit economic. Viable grades
arc generally contained within discrete oreshoots, which are surrounded
by barredlow-grade material. Drilling is an effective measure of
geological continuity, however grade distribution can only be reliably
obtained from underground development and hulk sampling. In general
terms. only an infcrred resource is likely lo be estimated from surface
drill data alone. Underground development. further drilling and probably
bulk sanipling will be required to delineate inferred and indicated
resources. Closely spaced development with hulk sampling is likely to be
the best way to determine a probable reserve. The resource evaluation
process niust driven by a clear geological model that should attempt to
understand the controls to reef geometry and grade distribution
Geological interpretation has traditionally been undertaken in
two-dimensions, though computer software is now being used to produce
three-diincnsional models. Grade interpolation has generally been
undertaken using classical methods. typically weighted averages. zone of
influence weighting and polygonaVsectional blocks. Tonnages can
generally be calculated from diamond drill and development information
with a reasonable degree of confidence. Grade is much more difficult to
define with confidence because of its highly erratic and discontinuous
nature. To account for variability it is recommended that a best estimate
bc reported within a grade range, as this more accurately reflects the
uncertainties involved. Reporting should be undertaken within the
framework of the JORC code. but should involve special consideration of
( > I Mt) (Table 2). Surface diamond drilling is generally only
able to define an inferred resource. with underground
development, in-fill drilling and bulk sampling required to define
indicatedmeasured resources and reserves.
In this paper, the nature of nuggety slate-hosted gold-quartz
reefs and problems of resource evaluation. grade control and
resource reporting are discussed through a series of case studies.
T h e critical role of geological understanding is emphasised.
REEF GEOLOGY AND DEVELOPMENT
Quartz-dominated slate-hosted reefs show variations in width
from narrow (4 m ) up to 20 m o r more, and display grade and
sometimes-geometrical complexities (Table I ; Figure I&).
Within a particular deposit, the geological development of a reef
is likely to have involved a unique sequence of events that
localise rich-gold domains. Mines in the same district may share
a number of common factors as their deposits formed in the same
general geological environment. T h e factors controlling
'rABLE 1
Characteristics of nuggety slate-hosted gold reejk
~ ~ ~

grade reliability.

INTRODUCTION
i Cwctcrxc
Geological
characteristics
1i - 6
Genergcatuz
b e t G 0 - 90"
Highly variable width ( 4 . 1 - 20 m)
,

I
i
Around the world, gold production from reef systems hosted in
metamorphic terrains has dominantly come from greenstone I I Structural variability: splitting and
branching I

sequences such a s the Yilgarn Block in Western Australia. - __

! C o m e free gold
Slatelshale hosted - _,
i
Significant production has also come from reefs hoyted in low
metamorphic-grade Palaeozoic and younger turbidite Sequences
(slate-belt and black-shale type) such as the world-class Central
IData characteristics
i Surface drill holes on typically >40 m
centres
Difficult to get representative samples
I
I
Victorian Goldfield (eg Bendigo, Rallarat and Tarnagulla) of
Australia and the small Dolgellau Gold-Belt of Wales. United
Kingdom.
I ! Low average concentration and high
variance of Au
Highly skewed grade distribution
I
I
-. - ..: i Larg*de -. I
Nuggety slate-hosted gold-quartz reefs are characterised by the 1
presence of highly-localised, erratic Occurrences of coarse-free Evaluation data Geological mapping
native gold (Johansen. 1998; Dominy er al, 1997; 1999). Large sources Diamond core drilling
variations in grade ranging from <0.1 up to 8OOO g/t are
I Underground development
common. Mineable values are either related to erratically .~ - .~ __Underground.hulk sampling/tn-ing ..,

distributed highs throughout the orebody or as erratically

distributed highs throughout discrete oreshoots. Head grades are
often in excess of 8 g/t, though can reach 30 g/t with resource
i Spatial continuity

I Doinaining
.-k
I
Low to high geological continuity
Low-grad? continuity
Often sharp definition of overall vein
I
I I structure although internally there may be i
' complex intermingling of ore and waste I
MAuslMM, Lecturcr in Mining Geology - Department of Earth I
Vein outlines, vein splitting and faulting
I.
Sciences, Cardiff University. PO Box 914, Cardiff CFlO 3YE. Wales, - ~
Presence of oreshoors_ , . .-A
~

UK. Interpretation focus Characterising grade distribution

Email: dominys@cardiff.ac.uk
I
Identifying extreme high-grades
Study of grade distribution along folds, !
2. MAuslMM, Exploration Manager - Reef Mining NL. Commercial I
faults. etc
Road, Tarnagulla Vic 355 I .
UnderstandingE?logy-
~- -. 1
3. MAuslMM. Exploration Manager - Bendigo Mining NL, PO Box
21 13, Bendigo Vic 3554.
I Grade estimation
requirements
Handling extreme high-grades
Nuggety distribution \
4. Principal Mining Geologist - SRK Consulting. Summit House, 9 - I O -_ Estimation along folds and.~
across fat&$-!
I
Windsor Place. Cardiff CFlO 3SR. Wales. U K . Grade estimation Classical methods
S. Visiting Fellow - School of Earth and Environmental Sciences,
I techniques , Inverse distance weighting I

University of Greenwich, Chatham Maritime, Kent ME4 4TB. I-_ -~ 1 G s f ~ s t i c (rarely

s used)
England, U K .

4th International Mining Geology Conference Coolum. Qld. 14 - 17 May 2000 169
 S C 1)OMINY. B W CUFFLEY. G FJOIiANSEN. A E ANNELS and I
Fi(i I A - Chidlaw Lode (40 level, Link Zone). Gwynfynydd mine.
Gwyncdd, U K . Vein (under hammer head). about 0.2 m wide, comprises
quartz intergrown with massive auriferous sphalerite and come gold
grading about 1.500g/t. This footwall gold vein (FGV)lay about 2 3 m
off footwall of a larger, 4 3 m wide mother reef. Footwall of FGV in
hlack Clogau shale and hangingwall in lighter greenstone.
(Source:Welsh Gold PLC).
localisation are at a scale intermediate between that available on
old workings and that provided by a drill core. This means that
interpretation of the core data will be significantly improved if
the gold-rich structures and the controls on their distribution can
be characteriscd by study of the old working and production data
for the site. interpretation of the Nick O’Time shoot at
Tarnagulla (Cuffley et a / , 1998) has been successful because of
detailed data from the mine openings, but at Gwynfynydd mine
(Dominy and Phelps, 1996; Dominy et a / , 1996) interpretation
during recent workings was severely restricted by the lack of
detailed geological data on previous mined rich-gold pockets.
There arc three levels of geological complexity involved in
localisation of the nuggety gold in many of these deposits:
The internal distribution in the immediate host structure may
be controlled by reef thickness and/or textural development
of the major reef filling components to give an irregular
distribution of gold.
The primary shape and dimensions of the immediate host
reef, which are mostly controlled by slip directions and
initial fracture shape. Fracture pattern and deformation style
may be controlled in part by the behaviour of the rest of the
reef and the reef host rock.
Kelationships of the carrying structure to the whole reef.
particularly the effect of later deformation and veining on its
position relative to the gross reef envelope.
These geological features generate the erratic and short-range
characteristics observed during statistical analysis of gold grade
in this style of mineralisation. Of major importance is the
investigation of both geological and grade continuity during the
resource evaluation process (Sinclair and Valce. 1994). Geology,
its interpretation and understanding, forms a key part of resource
evaluation (Dominy er al, 1997; 1990).
170 Coolum. Old. 14 - 17 May 2000
M PLATTEN
Fici 113 -
Nick O’Time shoot (Block 2Ul/rnKL990-994),Poverty k e f ,
Tamagulla Project. Victoria. Australia. High-grade laminated
hangingwall vein with spurs.
RESOURCE EVALUATION
Sampling
Diamond drilling of nuggety gold reefs generally gives a good
indication of reef location, etc but is generally not an effective
measure of grade. Assay of drill core gives a feel for grades, but
not an accurate assessment. The importance of drilling lies in the
determination of local geological structure, etc. Drilling
generally enables estimation of a resource tonnage.
Underground development permits detailed mapping and
sampling, the results of which enable grade and geological
continuity to be assessed. Development permits evaluation of the
orebody by bulk sampling ( 5 - 150 tonne samples) and trial
mining (up to I O 000 tomes).
Comparison between surface diamond drilling, underground
linear/panel and bulk sampling; shows that bulk sampling is the
best method for grade evaluation in nuggety gold reefs (Dominy
et a / , 2000). In summary, the general observations are (Johansen.
1997, 1998; Dominy and Cuffley, unpublished data):
0 assays using small assay charge sizes (25 - 100 g)
consistently understate assays using large assay charge sizes
( 1 .S - 3 kg);
0 wide-spaced drilling results consistently understate
close-spaced dri I I i ng rcsu I ts;
0 close-spaced drilling results consistently understate bulk
sample results; and
0 linear and panel sample results understate bulk sample
results.
4th International Mining Geology Conference
 RESOURCE EVALUATION O F NUGGETY SLATE-HOSTED GOLD-QUARTZ REEFS

Where possible an individual named orebody is given. An orebody can include one or more oreshoots
*Historicallrecent milled grades/tonnages. All other gradesltonnages based on resource estimates.
I . Drill inferred resource - includes a number of reef structures;
2. From West oreshoot;
3. Inferred resource;
4. Recent inferred resource estimate - largcr historied tonnage,
5.6. Inferred resource;
7. Bulked tonnage from a number of ontshoots;
8. Inferred resource;
9. Bonanza oreshoot.
IO. Nick O'Time oreshoot - global production estimate and
I I . Poverty Shaft oreshoot; and
12. Inferred resource.

Resource evaluation
Most reefs are relatively narrow tabular structures amenable to
2D representation and evaluation on plans and vertical
longitudinal projections. Computer-based 3D geological and
resource modelling is being applied to this style of mineralisation
more. and is particularly useful when attempting to interpret
historical stoping and geological information.
Conventional evaluation methods that have been applied to
nuggety reefs in the past include weighted averages and
triangular and polygonal techniques (eg Annels, 1991; Vallee,
1992). More recently IDW methods have been found to be most
suitabldacceptable for reefs as they are easy to apply. Typically
for very nuggety structures with least grade continuity, inverse
distance cubed weighting is applied, and an elliptical search area
is used whose long axis is aligned parallel to the oreshoots and
whose axial ratios may be defined by preliminary variographic
analysis. Though 2D-block kriging has been applied, often
combined with indicator kriging where high-grade
subpopulations exist. the nature of these reefs makes variography
difficult and the estimation of parameters unreliable. Frequently
the drilling density is inadequate to define the structure of
variograms at low lags. This is also a problem where composite
or hole-effect variograms are anticipated but where these cannot
be defined because of the inadequate sample coverage at the
exploration stage. Kriging may, however, become more
applicable during the operational phase of a mine when more
detailed sampling has been undertaken.
Reporting resources and reserves
The classification and reporting of reserves and resources in a
mineralised system dominated by erratically distributed gold is
not straightforward. In most cases the following characteristics
are observed:
the tonnage of mineralisation can be defined with reasonable
accuracy;
gold grade shows a high nugget effect and short range;
it is only possible to define a global grade for each zone of
mineralisation; and
drilling and other small volume sampling techniques
significantly understate bulk sampling grades and most likely
the true grade of the mineralisation.

4th International Mining Geology Conference -

Coolum. Qld. 14 17 May 2000 171
 ~~
S C DOMINY. R W CUFFLEY, G FJOHANSEN. A E ANNELS and I M PLATTEN
Resource evaluation aims to produce an estimate of the deposit
gradc and tonnage within the framework of a classification such
a s the JORC ( 1 999) code. 13y their nature, it is extremely difficult
to estimate measured resources (and proven reserves) in nuggety
gold reefs especially at the surface exploration stage when only
inferred and perhaps indicated resources are possible. Indicated
and measured resourccs require much higher levels of geological
datdexposure which arc only likely to be achievable during
underground development. In many cases i t is still impossible to
estimate the grade of a block even when it is fully developed and
sampled (Dominy and Phelps, 1996). In this case grades from
historical production data will probably form the basis of the
estimate,
I t is recommended that a possible gradc range be presented in
a bankable document as well as a grade estimate (Johansen,
1997; Johansen and Stephenson, 1999; Ilominy et a / , 1999).
Both grade and tonnage figures will be rounded to reflect the
levels of precision of the estimations. For instance grade may be
rounded to one decimal place within a grade range rounded to
the nearest g/t. Tonnage may be rounded to the nearest I O OOO
tonnes. It is felt that this approach better reflects the current
situation than reporting a single grade, and as a consequence
better informs investors and the stockmarket.
CASE STUDIES
The following section presents case studies of nuggety
slate-hosted gold reef operations. The examples are drawn from
the authors' practical expcrience and report how the difficulties
of resource evaluation and grade control were approached.
Chidlaw Lode (Link Zone), Gwynfynydd Mine,
Dolgellau Gold-Belt, North Wales, UK
The Gwynfynydd mine is located 8 km to the north of the town
of Dolgellau in North Wales. Since production was first reported
in 1863 over 1.5 tonnes of gold have been produced. Recent
activity began in 1981 under the auspices of Gwynfynydd Mine
Ltd, eventually closing in 1989. The last period of working
commenced during 1992 and terminated in March 1999 due to
lack of accessible resources and environmental constraints. The
operator, Welsh Gold PLC, raised E l .S million under Kule 4.2 of
the London Stock Exchange in January 19%. Gold produced was
turncd into Welsh Gold jewellcry, which yields a substantial
premium on the London Bullion Price. Approximately 8000
tonnes were milled annually from underground and surface (old
tips) sources. Underground production was based in an isolated
fault-bounded block of the Chidlaw Lode known as the Chidlaw
Link Zone (Dominy et (11, 1996; Ilominy and Phelps, 1996;
Figure 2). The company currently (May 2000) operates a tip
reprocessing plant on the site producing gold for the premium
jewellery market.
Geology arid niinerulisation
The east-north-east-trending Chidlaw Lode is a approximately 373 kg of gold from 8400 tonnes of rock. The
quartz-sulphide-bearing reef. which is hosted by Cambrian
sediments. Metadolerite sills known locally as greenstones
intrude the sediments. The reef occupics a normal fault and
possesses variable strike, dip and width according to the host
rock type. Multi-stage book and ribbon, and pinch and swell
structures combine to give the reef a complex geometry.
Late-stage barren quartz veins intersect and displace the
gold-bearing structure by metre-scale amounts (Plattcn and
Ilominy. 1999). Gold mineralisation is most likely to occur
where the reef is hosted in the Clogau Formation (carbonaceous
black-shales). Previous studies demonstrate that complex
interaction of auriferous fluids with the carbonaceous rocks led
to gold precipitation. Gold is generally coarse (up to 3 mm).
172 Coolum. Qld, 14 - 17 May 2000
though highly variable, and sometimes intimately associated with
sphalerite. Within the high-grade veins over 6.5 per cent of the
gold reports to the +300 pm fraction and over 80 pcr cent to the
+IS0 pm fraction. Less than five per cent generally reports to the
-53 pm fraction.
Within the Chidlaw Lode gold occurs in rich pockcts or
subshoots found within an overall easterly plunging oreshoot
(Dominy et 01, 1996; Dominy and Phelps, 1996). The oreshoot is
dominantly low-grade, essentially describing a fertilc-zone in
which gold-bearing pockets are likely to be encountered
(Dominy et al, 1996). The oreshoot position is partly controlled
by the bedding-reef intersection, with location of pockcts related
to variations in reef geometry and local geology. Localiscd zones
of reef flattening are often gold-bearing and related to dilational
zones proximal to a rigid greenstone body. In some of the oldcr
( I 860- 1900) Chidlaw workings, subshoots arc reported to bc
related to reef branching/intersections. Historical and recent
production in the Chidlaw Lode show that the pockets are
generally found in a narrow ( ~ 0 . 4m wide) footwall gold-vein
(FGV - Figure la). This is hosted in the footwall of the larger 4 -
6 m wide mother structure (Figures 2, 3 and 4). The footwall
zone is considered to be the region up to 5 - 6 m off the true
mother reef footwall. An FGV can lie immediately on the mother
footwall or diverge from it, and display changes in dip lrom SO"
to subhorizontal (Figure 3). The FGV are laterally and vertically
impersistent (in most cases no more than I O - 40 m along strike
and up dip). A key part of the grade control process is thc
effective following and local exploration of the footwall zone.
The importance of the footwall zone was realised early-on
during recent activities. Initial development of the Chidlaw Lode
(Link Zone, 6 level; Figure 2) in 1981 pursued a sharp contact
between the mother reef footwall and Clogau shale. The
drivcage, approximately SO m long, followed sphalerite-galena-
rich mineralisation along the footwall, but failed to find any
visible gold or notable assays. Later 1.5 - 3.5 m slashing along
the footwall zone revealed a 0.6 - 1.2 m wide zone of sheared
shalelgrcenstone containing a discontinuous gold-bearing quartz
vein. This zone was traced for 25 m along strike, IS m down-dip
(below 6 level) and I O m up-dip (above 6 level); and represents
the FGV. Gold was found throughout the stmcturc, with a
particularly rich patch I2 m below 6 level (Figure 1 a); overall the
FGV yielded 31 kg gold from about 2000 tonnes (mill head
grade about 17 d t ) .
C r u d e distribution
Gold grade distribution within the Chidlaw Lode is complex.
Studies of historical and recent production areas have shown that
grades are located within a 40 - 50 m wide (true width), 40 - SO"
east-plunging oreshoot. Economic accumulations within the
oreshoot are related to highly localised pockets of gold hosted
within a FGV. Local grades within an FGV may reach 6000 g/t.
Historical records show that the oreshoot contained less than five
per cent high-grade pockets. The largest recorded pocket ( 1887)
was in the form of a westerly plunging subshoot which produced
shoot produced at metallurgical grade of 44 g/t. though the mill
head grade was likely to have been nearer 60 g/t. Smaller
high-grade pockets can contain from 6 kg upwards. Small
background shows will typically yield between 30 - 60 grams of
gold from less than one tonne of rock. Elsewhere within the
oreshoot isolated specks of gold are sometimes observed. Overall
three gold domains are present:
barren: mother reefoutside the oreshoot <O.OS g/t;
very-low/medium-grade: oreshoot background grades in
mother reef >0.3 - 30 g/t*; and
high-grade: oreshoot go/d-pockets associated with FGV )>30
glt.
4th lntemalional Mining Geology Conference
 RESOURCE EVALUATION OF NUGGETY SLATE-HOSTEDGOLD-QUAKTLHEEFS

I
A - 8 FAULT I

I
A - B FAULT A

0
N
0
106rnAMD
I
Fici 2 - Chidlaw Link Zone. Gwynfynydd mine, Gwynedd. U K . Composite level plan showing location of major block bounding A-B and C faults,
mother reef, FGV (marked quartz leader vein). stopcs and major gold pockets between the upper 6 level and lower I I O level.
kvels in the Chidlaw Link Zone m measurrd in feet below 6 level. (Source: Welsh Gold PLC).

F
\
RAlSE TO 40' LEVEL

.. . .

Background show of gold \ --------I

Quartz leader roll zone \

Not drawn to scale Geological/mining footwall

-. -
F
a Fault
Greenstone, locally silicified
Clogau Shale with some quartz veining and minor greenstone
\
F
\
\
'
F
Quartz veining with lenses of C&gau Shale

FIG3 - Chidlaw Link Zone, Gwynfynydd mine. Gwynedd. UK. Schematic section showing reef shape as observed in the C U I I O level-west stope.
section through 990E (see Figure 2). FGV (marked quartz leader vein) is seen to flatted and then rise towards the 40 level above.
At the base of the raise to the 40 level, a small show of gold was encountered in the FGV yielding about 30 g gold. Levels in the
Chidlaw Link Zone are measured in feet below 6 level. (Source: Welsh Gold PLC).

4th International Mining Geology Conference -

Coolurn, Old, 14 17 May 2000 173
 ~

S C DOMINY. B W CUFFLEY, G F JOHANSEN, A E ANNELS and I M PLATTEN

20 15 10 5 Om
I I I 1 I

Major intra-vein carbonate-marcasite

vein. Cuts vein along stope length. G H X O G K A L HANGINGWALL

A-B FAULT ZONE

FOOTWALL
diverges from 110' LEVEL
quartz leader vein mother vein

:= Gold-bearing quartz leeder vein

G9 show ot background
Greenstone. brecciated and silicified
F-.- Fault
Quartz vein

Rci 4 - Chidlaw Link Zone. Gwynfynydd mine, Gwynedd, UK. Geological plan of the CLZ I I O level-west stope sublevel (8 m above I I O level).
The FGV (marked quartz leader vein) is well exposed in the first IO m of the stope. where it lies on the base of a Clogau Shale horse on the
mother reef footwall. Beyond 10 m, it passes further into the footwall greenstone body. Later stope I l f s corrected for this position.
Channel sampling across the stope back yielded low grades (less than I glt over stope width), though within the FGV grades were loc:~lly
17 g/t over 0.35 m. A small show of gold was located approximately 9.5 m along the stope in the FGV yielding 30 g gold. Levels in the
Chidlaw Link Zone are measured in feet below 6 level. (Source:Welsh Gold PLC).

The bulk mineable grade range generally lies between
0.6 - 3.5 glt which would be achievable by milling all stoped
very-lowlmedium-grade rock within the oreshoot. In siru grades
are generally within the >0.2 - 6.0 glt range, though values up to
30 glt are occasionally found. The presence of high-grade
pockets would raise the overall grade to nearer the historically
mined average grade of IS gh.
Resource evaluation
Geological and tonnage evaluation. Prior to full-scale
reopening in 1992, an underground diamond-drilling program
was undertaken to guide the proposed development in the
Chidlaw Link Zone. I t was well understood that drilling would
not enable the estimation of grade, though would provide an
estimate of potentially mineable tonnage. The program was
aimed at determining the:
width and geometry of the Chidlaw Lode below 6 level;
structure and mineralogy of the reef and nature of the
footwall zone;
orientation and position of the A-B and C faults bounding the
Chidlaw Link Zone;
location of the stratigraphic boundary between the Gamlan
and Clogau Formations; and
geomechanical nature of orebody and wallrocks.
Location of the A-BIC faults and GamlardClogau Formation
boundary was of major significance. Strike extent of reef was
controlled by the faults and the lower limit of likely gold
mineralisation by the boundary.
A total of 810 m of BX-core was drilled from 6 level
Little-Lode drive. Twelve holes were drilled on approximately
15 m centres to intersect the reef between 30 - 80 m vertically
below 6 level. All holes were advanced by at least 10 rn beyond
the intersected reef footwall to investigate footwall gcology and
were surveyed every 6 m using a Reflex Fofobor system. Reef
intersections were cut into 1 m lengths and the core sent for gold
and silver assay after detailed logging. In most cases grades were
less than 0.2 g/t, though a few grades of 1 - 3 glt over 1 m were
found.
The drilling program was successful, showing that:
reef true-width varied between 1 - 4 m, on average 3.5 m;
and the reef showed only a small variation in dip and strike;
reef structure (book and ribbon-type) and mineralogy (quartz
dominated with sphalerite-galena, etc often on the footwall
zone) was comparable to that seen elsewhere in the Chidlaw
Lode;
the position of the A-B and C-faults which divcrged with
depth;
0 GamladClogau Formation boundary was 70 m vertically
below 6 level;
reef wallrocks were not likely to provide any serious
geomechanical problems; and
0 the Chidlaw Link Zone contained 24 000 tonnes of potential
ore below 6 level.
In 1992 the classification of reserve (proven and probable) was
applied to the mineralisation defined in the Chidlaw Link Zone.
However, as discussed later. this terminology was subsequently
considered inappropriate considering the extremely low
confidence in the grade estimate. A global specific gravity of
2.65 Urn3 was used for all tonnage calculations.

174 Coolum. Old. 14 - 17 May 2000 41h lnlernahonal Mining Geology Conference
 RESOURCE EVALUATION OF NUGGETY SLATE-HOSTED GOLD-QUARTZ REEFS
Grade evaluation. As previously noted, gold grades at
Gwynfynydd are particularly complex and difficult to predict.
Kesource grade estimates have been based on bulk sampling/trial
mining and historical production. In 1985 a trial stope centred on
the projected oreshoot yielded 550 tonnes from the Chidlaw Link
Zone above 6 level. Channel samples in the 1.2 - 1.5 m wide
stope were taken on a I - 1.5 m grid revealing a wide range of
values (cO.01 - 649 glt). Weighted averaging of the uncut data
yielded a geological i r i situ grade of 10.7 g/t. A mill grade of
16.3 dt wiis calculated from the tonnage throughput. recovered
gold and tailings assay.
Between 1863-1916 stoping on the Chidlaw Lode 2 level
(above 6 level and the west of A-B fault) yielded 105 000 tonnes
of ore with an average grade of 11.8 glt. During 1984 - 1990 and
1992 - 93 stoping on the Chidlaw Link Zone (6 level and below)
yielded 7000 tonnes at an average grade of IS p/t, which was
taken as the adopted historical grade (Unpublished consultants
report, 1994). Tonnages were determined in the usual way, based
on drill hole intersections and geological interpretation. Prior to
mining. a block was defined by the development of a lode drive,
sublevel and raise(s) allowing vein continuity and geometry to be
tested
The original evaluation used to raise capital in early-I995
reported a grade based on historical production and bulk
sampling and quoted proved and probable reserves (Unpublished
consultants report, 1994). This usage was flawed for this deposit,
because the degree of confidence implied for a reserve grade was
not there. At best only an inferred resource was present.
Subsequent estimates by the technical staff for company reports.
etc used the terms:
potential resource (undeveloped) - generally undeveloped
with drill hole intersection(s). Some geological evidence
(probably historical) to suggest that the oreshoot is present.
Preliminary estimate of tonnage based on inferred geological
continuity from drill holes;
inferred resource (partly developed) - partly developed
(one level), evidence that an oreshoot is present (possibly
historical data or data extrapolated down-dip). Some
development mullock batch-milled as bulk samples and
backs/faces sampled; and
inferred resource (fully developed) - developed on at least
three sides (preferably four), mapped and sampled.
Development mullock batch milled as bulk samples and
backdfaces sampled - ready to mine (highest degree of
confidence, but still low confidence with respect to grade).
Whichever class used, the caveat was always that there was no
guarantee of a high-grade gold pocket(s) being present and that
the mined grade may only lie within the low-grade background
range of the oreshoot. Indicated and measured resources and
reserves were never defined.
Grade control
As no formal resource grade could be estimated, reconciliation
was irrelevant. Grade control activities were critical in expanding
the geological database and developing a better understanding of
the mineralisation. Grade control studies were central to the
mining of a stope panel. As previously discussed, recent
production and historical data showed the presence of a
discontinuous FGV within the mother reef footwall. It was thus
important to understand, as best as possible, the nature of' the
footwall zone prior to mining. Historical records and recent
production experience showed that it was easy to develop along
an incorrect footwall structure or loose it during mining (Figure
4). For any block, footwall evaluation was undertaken by the
development of upper and lower lode drives and raises. Only
small stoping blocks were used approximately 15 - 20 m down
dip and along strike. The target horizontal stope width was
1.5 m. Short cuddies. slashes andor sludge holes were driven
4th International Mining Geology Conference Coolurn. Qld, 14 - 17 May 2000
periodically into the stope footwall and hangingwall to check
reef position and possible splitting, etc. Geological mapping of'
development was used to delineate reef geometry, the effects of
faulting and identify areas of poor ground conditions (Dominy
and Phelps. 1997). Sections were produced on which the final
stope design was based. Geological data was digitised into
DATAMINE, enabling plans and cross-sections to be produced.
In this style of mineralisation, linear/panel sampling was of
limited value for resource grade evaluation. I t was however used
to monitor loccil grades and to confirm the presence of' the
oreshoot which carried a low-medium grade background value.
Development drive backs were chip sampled (about 15 kg) every
3 m and submitted for triplicate standard fire assay externally
(sometimes SFA). The decision on which fire assay method to
employ was based on local geological knowledge and expected
grade. Where assays indicated an anomalous (with respect to
other nearby samples) grade (generally 2 - 8 g/t). a box cut was
fired into the backs to check for visible gold.
Daily chip-panel face samples (drives and stopes; about SO -
75 kg) were taken and processed in a surface laboratory. These
were jaw-crushed (-6 mm), ball-milled (-1 mm) and a
concentrate produced using a half-size Wilfley table and spiral
panner. A bench-scale 3" Knelson Concentrator was trailed; this
proved highly effective in processing about 45 kghour of
pulverised sample ( - I mm). Sludge holes were drilled into both
hanging- and foot-walls (sampled every 0.5 m); panned and
sometimes sent for fire assay. All development muck within the
oreshoot zone was milled and a mining grade back-calculated.
An individual round(s) of ore could be batch milled as a bulk
sample if required (minimum practical sample size five tonnes).
Grab samples were not routinely taken, though were occasionally
used to monitor muck-pile or truck grades. In most cases a IS kg
sample was taken, crushed, milled and either split and sent off
for analysis, or a panned concentrate produced.
Underground mill - bulk sampling ficility
The underground gravity-based mill was able to process up lo 3.5
tonnes/hour. Ore was passed through jaw (-70 mm) and gyratory
(-6 mm) crushers prior to grinding in rod mill ( - I mm) and then
into a 12" Knelson Concentrator. A proportion of the 12"
Knelson outflow (about 40 per cent) was passed through a
smaller 7.5" Knelson. The original mill design used the smaller
Knelson, with expansion of the operation in 1995 the 12"
Knelson was purchased, replacing the 7.5" as the primary
concentrator. Gold traps were located immediately after the
gyratory crusher and rod mill, the latter collecting up to 40 per
cent of the gold. Products from both Knelson Concentrators was
further cleaned-up using a half-size Wilfley Table prior to on-site
smelting and refining. The final mill concentrate (including
material from both gold traps) was composed of gold and galena
with minor amounts of pyrite, grading up to 6500 g/t.
There was always the likelihood of gold particle lock-up in the
rod mill liners. As a result the following was undertaken:
after stripping and cleaning of the mill circuit flush through
with waste to fill gaps in mill liners (eight tonnes); and
flush the mill through with waste between samples
(minimum 3.5 tonnes).
As mill head grade was highly variable (eg no reserve
estimate), mill recovery was monitored through the smelter gold
return and controlled tailings assay; in general the mill recovered
between 94 - 97 per cent.
Main Reef, Clogau St Davids Mine, Dolgellau
Gold-Belt, North Wales, UK
The Clogau St Davids mine is located 4 km to the northwest of
Dolgellau in North Wales. Since production was first reported in
1854, the mine has produced in excess of 2.6 tonnes of gold
175
 S C M M I N Y . B W CUFFLEY. G FJOHANSEN. A E ANNELS and I M PLATTEN
Clogau Gold Mines PLC undertook the first comprehensive,
modern evaluation of the mine during 1984 - 1987. The company
was floated on London's Unlisted Securities Market in 1984
raising f2.5 million to finance an exploration program. The
program was terminated in 1987 when i t was concluded that the
highly erratic, pockety-nature of the deposit would not support a
viable bullion mining operation. More recently the mine has been
operated on a small scale during 1989 - 1998 by Clogau St
Davids Gold Mines Ltd. In early-2000, Cambrian Goldfields Ltd
acquired the mine and are currently evaluating its potential for a
premium Welsh gold jewellery business.
Geology and minera!isation
, Diamond drilling has rarely been used at Clogau, because of
The general geological characteristics are comparable to those
previously reported in Gwynfynydd mine, though the reef is
notably narrower (0.1 - 3.5 m wide). Gold mineralisation is
hosted in the Main Reef and its associated branches (John
Hughes, Paraffin, etc). Within the mine, gold occurs in rich
pockets (or subshoots) found within a series of southwest
plunging oreshoots. It must be stressed that like Gwynfynydd
oreshoots, the Clogau shoots are not dominantly economic,
describing fertile-zones in which gold-bearing pockets are most
likely to be encountered. The oreshoots are related to zones of
vein branching or refraction by metadolerite (greenstone) sills.
Gold is generally coarse (up to 5 mm) and is variably associated
with tellurides (principally tellurobismuth and tetradymite) and
galena. Within high-grade zones (grades >30 g/t) over 75 per
cent of the gold reports to the +30O pm fraction and over 85 per
cent to the +I50 pm fraction. Less than two per cent generally
reports to the -53 pm fraction.
Post-mineralisation faulting resulted in normal movements
which occurred on reef margins and fracture planes within
individual reef elements. This caused portions of vein to be
downthrown by up to I O m, effectively diluting grades within
gold-rich areas of an oreshoot. Minor controls that influence
oreshoot geometry and gold localisation are related to the dip of
the reef and irregularities in its walls. Gold can be preferentially
deposited on the footwall, particularly in shallower dipping
sections and associated with footwall irregularities. Late
post-gold reef veins (elephant quartz; Platten and Dominy, 1999)
occur as thick developments of white quartz. Where this occurs
within rich sections of an oreshoot, they have a deleterious effect
on structure and grade, locally truncating, dislocating and
I sometimes folding the gold reef.
Grade distribution
Gold pockets are located within a series of 3 - IS m long
(along-strike), >SO m along plunge, 20 - 80' southwest-plunging
I oreshoots. Historical records show that the most productive
oreshoots contained gold-rich pockets in less than five per cent of
the total shoot volume. Overall, three gold domains are generally
recognisable:
barren: reef outside the oreshoot <O.OS g/t
very low/ oreshoot background grades >O. I - I5 g/t
medium-grade:
high-grade: oreshoot gold-pocket grades N I5 g/t
Activities during the 1980s followed the Llechfraith-No 1
shoot down dip. The shoot plunges 60" southwest, is
approximately I O m along strike and can be traced 40 m
down-dip from surface to the No 4 level below. The shoot is
related to a split in the reef with high-grades within the
immediate split zone. Gold is extremely erratic with high-grades
(>3000 g/t) within IO'S mm of very low-grades ( ~ 0 . 1611). The
overall grade of ore mined was approximately 9 g/t.
176 Coolum. Old. 14
Resource evaluation and grade control
During its recent periods of operation (post-1984) the mine has
been run as an exploration project with little resource evaluation
sensuo-stricto undertaken. Because of the extremely nuggety
nature of grade, geologists have been pre-occupied in
understanding the geology and controls on oreshoot/gold pocket
localisation rather than trying to define resources. As with the
mineralisation at Gwynfynydd, only an inferred resource could
possibly be defined based on the position and continuity of an
oreshoot. Clogau has the added advantage that the reef' is narrow
(ie all reef exposed in development) and the gold is hosted within
i t (there are no footwall leaders).
the impracticability of obtaining representative samples. During
1984 - 1987 some 2000 m of surface and underground drilling
was undertaken for structural/location purposes. As most of the
known oreshoots have already been worked at surface. activities
have been centred on underground exploration. This approach
enabled access to the entire strike length of the workings
(1.5 km) allowing geological mapping and sampling in these
areas to identify potential oreshoots. Since 1984 over 800 m of
new development has been completed. Some 12 000 tonnes o f
material has been mined and processed in a gravity mill on-site.
Activities during I984 - I986
During this period a systematic comparison was made between
1 m spaced-channel samples (in ore shoot area) and five tonne
bulk samples (box cuts). The latter showed poor grade
correlation, with the channel samples understating the bulk
samples. Ten-tonne bulk samples were used to overcome the
erratic grade distribution and thereby establish reasonably
realistic grades. A small on-site gravity mill was used. All mill
Concentrate fractions were assayed to enable the back calculation
of the geological grade for each bulk sample. A split of
underground samples were crushed and panned by hand to give
an indication of gold content, these results generally correlated
well with assays.
Activities post- I989
During 1989 - 1998 mining was on a small-scale (<IS00 tonnes
per year) and driven by geological control. Mine plans were
digitised into DATAMINE in an attempt to model local geological
conditions around oreshoots. Mining was guided by geological
mapping which aimed to locate the presence of, and relationship
between, reef splits and greenstone bodies. Mining was highly
selective, employing air-leg development of raises. winzes and/or
sublevels into the geologically defined target zones. When gold
was encountered a small over- or under-hand stope was
developed. Bulk mining of reef proximal to oreshoots was not
routinely undertaken (unless free gold was present), however one
stope on the Upper Level yielded a continuous low-grade source
(2 - 6 g/t). Grade control channel and bulk sampling was
undertaken as part of the development process.
A small 0.75 tonnehour gravity mill allowed batch milling of
bulk samples backed up by chip-channel samples where
appropriate. The small surface mill comprised jaw (-50 mm) and
gyratory (-10 mm) crushers, a ball mill ( - 1 mm) and two Micron
Mill Wave Tables (Mark 11) for final concentration. Gold traps
were located on the outflow of both crushers. generally
collecting up to 40 per cent of the liberated gold. Grade control
samples were either sent externally for assay or treated on-site.
On-site samples were prepared with a lab-scale jaw crusher
(-5 mm) and ball mill (-1 mm). The sample was then passed over
one of the Micron Mill Wave Tables to produce a concentrate for
visual assay.
- 17 May 2000 4th International Mining Geology Conference
 RESOURCE EVALUATION OF NUGGETY SLATE-HOSTED GOLD-QUARTZ REEFS
Current activities (May 2000) involve historical research and
refinement of the geological model based on detailed mapping
prior to a program of trial mining.
Nick O’Time Shoot, Poverty Reef, Tarnagulla
Goldfield, Victoria
The Tarnagulla Goldfield is located 45 km west of Bendigo in
the Central Victorian Goldfield. Gold-bearing quartz reefs
(Poverty Reef and Specimen Reef) were discovered in 1853,
shortly after the initial alluvial gold rush. The Poverty Reef
dominated the field for high-grade and gold yield. Total primary
gold production from the Tarnagulla Goldfield to-date is
estimated to be 14.4 tonnes. of which 11.2 tonnes were mined in
1853 - 1866 from the high-grade Bonanza Shoot within the
Poverty Reef. The Bonanza Shoot was worked to a depth of 120
m from a small outcrop, for a production of 122 000 tonnes at a
head grade of ‘92 g/t gold (Figure 4 - la). From 1995 until
October 1‘99‘9, Reef Mining NL milled 4Y 000 tonnes at a head
grade of 28 g/t from the Nick O’Time Shoot. It is estimated that
a further 7000 tonnes remains at a grade of 33 dt which will be
extracted by March 2000. This gives a global resource of 56 000
tonnes at 28.6 dt ( I .6 tonnes contained gold).
Geology und mineralisation
The Poverty Reef is one of a number of ellipsoid. en-echelon
quartz segments, which make up the Poverty line of Reef
(Cuffley et a / , 1998; Figure 5 - Ib). The steep west dipping
Poverty Keel segment is 650 m in strike length and up to 300 m
in down-dip extent. The segment plunges at 20” south, with the
Bonanza Shoot at the north end and Nick O’Time Shoot at the
South end (Figure 5 - 2). The Poverty Keef is a typical fault vein
within tightly folded Ordovician quartz turbidites (Figure 6). The
Poverty Line of Reef has developed as an en-echelon fracture
system located between en-echelon anticlinorial domes. This is
consistent with a torsional stress field setting, the effects of
which can be observed down to mine scale. Detailed geological
interpretation and mapping has resulted in a clearer picture of the
structural development of both reef and oreshoot (Cuffley et al,
1998).
High-grade, narrow, laminated reefs have developed at each
end of a massive quartz segment, where torsional, oblique
strike-slip movement has occurred, creating zones of dilation
(Figure S - 3). The competency contrast between the pre-existing
massive quartz and the enclosing metasediments has created an
environment in which mineralised crack-seal quartz reefs have
developed. The gross oreshoot has been broken up into blocks by
post-mineralisation reverse faults (Figure 6). Overall, the Nick
O’Time Shoot is a vertical pipe like body extending from 70 m
below the surface to 370 m. The upper 180 m of the shoot is
high-grade and below that a rapid transition to lower grade
occurs. Only the high-grade section has been mined, to a depth
of 250 m below the surface. The laminated high-grade structures
range up to 1 .5 m in width and occur as oblique hangingwall and
footwall reefs in an en-echelon pattern around a central core of
low-grade massive quartz, which ranges up to 7 m in width
(Figures 5 - 3 and 7). The combined strike length of the structure
varies from 20 m at the top of the shoot to 70 m at the bottom.
The gold generally occurs in laminated reefs associated with
pyrite, arsenopyrite, galena, tetrahedrite, sphalerite and
chalcopyrite. Isolated gold specks can also occur alone in quartz.
Gold, pyrite and arsenopyrite also occurs in stylolitic fractures
developed around the massive quartz core of the shoot. Several
phases of gold mineralisation are apparent. The primary phase is
associated with the laminatcd reefs of the shoot and two other
phases are associated with cross-cutting quartz and quartz-albite
veining in faults and fractures.
4th InternationalMining Geology Conference Coolum. Qld, 14 - 17 May 2000
With the high-grade laminated reefs, gold specks are
disseminated and generally up to 7 mm . in size. Larger
gold-quartz specimens have been found in the supergene zone.
Approximately 46 per cent of the gold reports to the +42S pm
fraction. 57 per cent to the +300 pm fraction and 79 per cent to
the +IO0 pm fraction. Less than ten per cent generally reports to
the -53 pm fraction.
Grade
The highest grades within the Nick O’Time Shoot occur in the
narrow laminated, oblique reefs splaying off to the north
(footwall rccf - FW) and south (hangingwall reef - HW) of the
central quartz core (Figure 7). Vein grades can be in IOOOs g/t
(up to 6000 glt) and commonly in 100s g/t. Grades are erratically
distributed throughout the laminated reefs (Figures 1 b and 7) and
appear to be in two distinct domains:
Low-grade: central massive core 0. I - S g/t
High-grade: HW and FW laminated reefs >20 g/t
Geologically these statistical units correlate with early phase
low-grade massive quartz reef and late phase shoots
characteriscd by the laminated reefs formed along reactivated
structures.
Resource evaluation
During 1989, Western Mining Corporation carried out an
evaluation of the Poverty Reef. The study was based on a small
8000 tonne shoot located 150 m below surface adjacent to the
Poverty Shaft. A 970 tonne bulk sample yielded a head grade of
7 glt. Diamond drill core assays from both surface (NQ) and
underground (BQ) drilling indicated a grade in the 1 - 3 g/t
range. Underground grade control methods included face
chip-channel sampling of each cut (15 - 20 tonnes) and truck
grab sampling. The face samples provided two to three 1.5 kg
samples that were sent for fire assay. Both the drill core and face
samples generally understated the mill grade.
During 1994, Reef Mining discovered the Nick O’Time Shoot
by surface diamond drilling on a SO m grid pattern. along an
interpreted south plunging zone south of the old Poverty Reef
workings. Three of the first 25 drill holes were direct hits down
the vertical axis of the shoot. The nature of the mineralisation in
the discovery holes (disseminated specks in laminated quartz
rather than isolated specimen gold) was very encouraging. The
drilling also demonstrated the continuity of the Poverty Reef to
the south of the old workings.
In 1995 a preliminary estimate based on weighted averages
and polygonal blocks projected to a midpoint between drill holes
was calculated. A top-cut of 30 g/t was selectively used to
remove the influence of abnormal high-grades in the areas of
lower grade mineralisation. The estimate was based on limited
drilling plotted on a vertical longitudinal projection. A global
specific gravity of 2.65 t/m3 was used. Some 30 000 tonncs at
30 g/t was defined in the Nick O’Time Shoot (inferred resource)
and 497 OOO tonnes of low-medium grade elsewhere in the
Poverty Reef (inferrcd resource). The low- to mcdium-grade
resource was purposely not assigned a definite overall grade. as
the density of drilling did not justify this. Rather, the grade was
quoted as ranging up io 10 g/t (ie further exploratory work could
define orebodies within the inferred resource up to I O g/t in
grade). Classification in the inferred resource category was
regarded as prudent. since uncertainty existed regarding the
overall grade.
Since mining of the Nick O’Timc Shoot commenced in 1996,
the resource estimate for the high-grade shoot has been
progressively modified and elevated to measured resource
category on the basis of 15 - 20 m spaced underground drilling.
development and bulk sampling. An allowance for mining
177
I
S C IIOMINY. I3 W CUWLEY, G F JOHANSEN. A E ANNELS and I M PLATTEN

JORTH

-
RMD 105

8
RMD 106

Unexploredto 1000 metres

la. Poverty Line of Reef - Long Section 1

-
1b. Poverty Line of Reef Plan - Scale
I

0 100 rn
North
' - - Scale
I Nick OTime High Grade
Shoot
Bonanza High grade

PRINCE OF WALES SHAFT Low - Medium Grade massive Quartz Reef

1
-
2. Poverty Reef Quartz Segment Inclined Plan View (down 20" S plunge)

0 25 m North
Scale
Low grade Massive Quartz Core

High Grade Footwall vein

High Grade Hangingwall Vein
Footwall Structure

3. Nick O'Time Shoot. Block 2E/1 (mRL990m) Level Plan

I
Author B cumey
REEF MINING N.L. Date August 1959
MIN 4756 TARNAGULIA GOLD PROJECT

POVERTY REEF QUARTZ SEGMENT & SHOOTS

Mine Scale to Regional Setting - Schematic Plans
h i S - Tamagulla Project. Victoria. Australia. Poverty Reef quartz segment and oreshoots; regional to mine scale structural data. la - Long section of the
Poverty line of reef showing location of Bonanza and Nick O'Time shoots; I b - Poverty line of reef plan showing individual reef segments; 2 - Poverty
Reef quartz segment showing Honanw and Nick O'Time shoots and low-medium grade massive rwT; 3 -plan of Nick O'Time shoot on 990 m KL in
mining block 2U1. (Source: Reef Mining NL).

Coolurn. Qld. 14 - 17 May 2000 4th International Mining Geology Conference

 KBSOURCE EVALUATION OF NUGGETY SLATE-HOSTED GOLD-QUAKTL KEEFS

CROSS SECTION 5926220N

Fic; 6 - Tamagulla Project, Victoria, Australia. Cross-section 5926220N through the Poverty Reef (Nick O’Time shoot) and parallel reefs. This figure
exemplifies the possible structural (brittle and ductile deformation effects) complexities confronting operators. The high-grade laminated reefs are seen on
the margins of the low-grade core reef. Late-stage reverse faults displace the Poverty Reef (Nick O’Time shoot) by 8 - 16 m into a series of isolated
blocks. (Source: Reef Mining NL).

4th International Mining Geology Conference -

Coolurn. Old. 14 17 May 2000 179
 S C DOMINY, B W CUFFLEY. G FJOHANSEN. A E ANNELS and I M P I A T E N

W WI W

. m:NI I Y)

w/ gi
O !
Y)

-- ._-
I

! ~- .6250
. I
I

i
I

3 1mR49 479n( 1 OmR41

.

i"'
I

I
I
!

6200 1

I
I .-

I
I
I
I
i
. .-
GRADE OF NICK OTIME SHOOT
60m STRIKE LENGTH

Preliminary Estimate 20gA Bulk Grade

(Treatment in progress)
II
I

REEF MINING N.L. Author B Cuffley

Dale Sept 1998
MIN 4756 TARNAGULLA GOLD PROJECT
CRYSTAL HILL DECLINE, HIGH GRADE NICK O'TIME SHOOT
LEVEL PLAN mRL 990, BLOCK 2E
GEOLOGY PLAN

Flci 7 - Nick O'Time ore shoot. Tamagulla Project. Victoria. Australia. Plan of the 990-m level showing gold-bearing quartz reef and grades within the
high-grade ore shoot. The maximum channel sample grade is 7.59 g/t, with metal accumulation values ranging from 0.18 to 773 m . g k The system
, comprises two en-echelon reefs (footwall and hangingwall veins) around a central. low-grade massive quartz core. (Source: Reef Mining NL).
I

180 Coolurn. Old. 14 - 17 May 2000 41h International Mining Geology Conference
 KESOURCII EVALUATION OF NUGGETY SLATE-HOSTED GOLD-QUARTZ REEFS
dilution is included in the measured resource. Underground
development has increased the resource, in this case double the
initial estimate. as mining and exploratory development is
concurrent. liesource and geological modelling is undertaken
using Gemcom software.
Mining und milling
The Nick O"1ime Shoot is accessed via a 2 km decline that
allows exploratory development of the whole of the Poverty
Keel. Orc has been mined using a combination of mechanised
methods (3.5 - 7.0 m widths) and conventional hand-held (airleg)
methods (1.2 - 2.0 m widths). Hand-held methods have been
used where geological parameters have allowed selective mining
of high-grade laminated reefs, leaving the massive quartz core as
a pillar. In both cases flat-back cut and fill mining has been the
predominant method. using either mullock or tailings as backfill.
Ore is trucked to surface and then transported to an off-site
mill run by Reef Mining on a dry-hire basis. A 98 per cent
recovery is achieved; 80 per cent of gold is recovered in the
gravity circuit and the remainder in a CIP circuit.
Grade control
Gradc control is essentially geological. The majority of the gold
inventory is contained within the generally clearly defined
laminated reefs. No gold occurs within the altered mctasediment
wall rocks. However, the grade boundaries can be difficult to
pick around the massive quartz core or where high-grade
laminated reefs are associated with earlier massive quartz spurs.
Chip-channel samples are taken across the face every cut. A cut
is 2.7 m advance in the mechanised operations and I .8 m in the
airleg stopes. Mechanised mining faces are 3 - 4 m wide and
usually four 5 - IO kg samples are taken. The narrower airleg
stope faces are 1.2 - 1.7 m wide and three 7-kg samples are
taken. Each sample is crushed, split to 3 kg, pulverised to -75 pm
then subjected to a RLEG assay (solvent extraction, AAS finish).
Alternatively, if data on size distribution of gold is required, a
1 kp SFA is performed.
Grade control is very much visual and experienced based,
supported by a database of retrospective face assays of the
various vein types and styles of mineralisation.
Studies undertaken in 1989 involved grab samples from rail
(rucks. Despite the apparent random nature of this method they
often provided a grade nearest to reality (Table 3). Two duplicate
1 kg samples were taken out of each truck at the shaft station. All
samples were bulked together to make a larger 10 - 15 kg
sample. which was pulverised and split down to 1 kg.
TABLE
3
Cotnporisori between fuce, truck (grab) arid mill grades for the
h v e r l y Shcff Shoof. f i ~ r t i f ~ g uGold
/ l o Projecr. Victoria, Australia
(Source: Reef Mining NL).
41h International Mining Geology Conference Coolurn. Old. 14 - 17 May 2000
Heconciliation
The face grade is determined by weighting according to the
proportion of the face occupied by a particular gcologicaVgradc
domain. The grade of a block, representing one cut (3.5 m wide,
4.0 m high. 2.7 m long), is simply determined by averaging the
face grades either end of the block. A weighted average of
tonneslgrade for each block along the 3.5 m stoping lift is then
made.
This simplistic classical mining block-modelling method,
using uncut assays, usually overstates the grade by about 15 per
cent in relation to mill grade. Experience has shown that by
applying a I 0 0 g/t top cut to the calculated block grades (not the
individual unit grade assays) and applying the appropriate
dilution factor for the particular stoping level, the correlation
with mill grade is good. Other grade interpolation methods have
been considered, with work in progress.
Overall the history of resource evaluation compared with
actual mining suggests a general tendency for an increase in
actual tonncs relative to the estimate, and a general consistency
in grade.
New Bendigo Project, Bendigo Goldfield, Victoria
The Bendigo Goldfield is centred on the urban area of Bendigo
in Central Victoria, some 130 km northwest of Melbourne. Gold
was discovered in the area in 1851 and production continued
until 1954. The Goldfield is the second largest in terms of total
gold produced (-529 tonnes) in Australia after Kalgoorlie's
Golden Mile. Recent exploration started in 1978 until 1993 when
Western Mining Corporation Ltd held title over the Goldfield
(Sharpe. 1988). They undertook extensive historical research
together with RC and diamond drilling, but did not define any
resources (Johansen, 1998). In 1993 Western Mining
relinquished the title which was taken over by Bendigo Mining
NL. Since then Hendigo Mining have undertaken an extensive
re-evaluation of the area including detailed 3D geological
modelling (using Gcmcom), KC and diamond drilling,
dewatering and accessing historic workings and bulk sampling.
The company estimate that in excess of 120 million tonnes of
quartL cxistcd in the historically mined areas, -of' which
approximately 40 million tonnes was mined. In November 1997
Bendigo Mining raised $A35 million to fund the sinking of a
decline to investigate targets on the Deborah and Sheepshead
Lines of Kcef. The project will also involve 1000 m of
exploration driving, 5000 m of underground fan drilling and
3.500 tonnes of bulk sampling (Syddell, 1999).
Geology and mineralisation
The Bendigo Goldfield is a classic slate-belt style of
mineralisation with sediment hosted auriferous quartz reefs
closely associated with anticline axes and reverse faulting. A
geological model has been developed to explain the development
and distribution of reefs within the Goldfield (Figure 8).
Structurally the region is comprised of compression-ruptured
chevron folds. The new model envisages that. as compression
progressed. stress was released through reverse faulting of the
anticlines at regular vertical intervals. The structures so formed
became the focus for siliceous mineralisation, resulting in the
development of various types o f quartz reefs on, or in close
proximity to the anticlinal axes at vertical intervals of 150 -
250 m. These structural zones, which have continuous
along-strike extents of many kilometres, are termed ribbons and
the regular repetition of the ribbons at depth was, historically, a
well-known feature of the Goldfield (Figure 8). With later
re-fracturing of the ribbons and an influx of gold-bearing fluids,
some of the reefs and other quartz-filled structures became hosts
for subsequent gold mineralisation. The famous saddle reef
structures of Rendigo actually only accounted for ten per cent of
historic production.
181
 S C DOMINY, B W CUFFLEY, G F JOHANSEN, A E ANNELS and I M PLAITEN
and .ProposedDecline Path
Flci 8 - New Bendigo Project. Victoria, Australia. Schematic 3D block diagram showing potential mineralised quartz-reef ribbons at depth on the
Sheepshead, Deborah and Garden Gulley Lines of Reef. (Source: Bendigo Mining NL).
Grde
The gold within the quartz reefs is typically both coarse-grained
and erratically distributed. All the Bendigo reefs contain
low-grades from 0.3 to 1.5 g/t with higher grade areas above
8 g/t; high-grade ore shoots can contain as much as 95 g/t
(Laidlaw, 1993). Historic production grades for the entire field
were I O ' - IS g/t. Current estimates are that historic operators
extracted approximately one-third of the reefs accessed, with the
remaining two-thirds deemed to be too low-grade (their cut-off
was around 6 - 8 g/t). Investigation of historical stoping patterns
and bulk sampling data indicate that the grade, though erratic in a
local sense, tends to be more gradational on a larger scale.
High-grade oreshoots may relate to late, small-scale
displacement, slightly oblique structures and as a result stoping
patterns may occur as 20 - 100 m wide zones pitching gently
across reef strike. Where sufficient information is available, a
high-grade core to the stopes can be discernible. Moving away
from the stoped regions, historic bulk sampling values drop off in
a fairly regular fashion. As a result of the nugget effect, small
samples such as drill core will not detect this broader pattern.
Resource evuluution
There are currently four separate areas of deep remnant
mineralisation with identified resources; Deborah. Sheepshead
( S 2 ) . Williams 40 Foot Spurs and New Chum (NC6). The
methodology for estimating resources varies slightly depending
on the data available.
Deborah tonnage estimation. The Deborah workings were
dewatered to approximately 400 metres below surface allowing
detailed geological mapping of the accessible portions of the
historic workings. This mapping, in conjunction with
reconstruction of historic workings and geology from historical
data and three diamond drill holes, enabled the construction of
182 Coolurn. Old, 14 - 17 May 2000
to the 03 and S3 Ribbons
detailed, computerised 3D models of the quartz reefs, associated
structures and historic workings. Tonnages for individual reefs
were determined by applying an average specific gravity
(calculated from samples collected underground) to their
volumes from the models, after removing the volume of historic
stoping and development. Tonnage estimates are considered to
be reasonably accurate.
Deborah grade estimation. A total of two-hundred and
twenty-four 25 kg chip samples were collected from the
accessible reefs. Each sample was crushed to -10 mm, riffle split
into two equal subsamples and each subsample pulverised to -75
pm. Three kilograms were split from each subsiimple and
assayed for gold by BLEC (3 kg). Drill core from two diamond
drill holes were assayed by 3 kg BLEC on the whole core, with
the remaining diamond drill hole assayed by fire assay on half
core. In addition three historic bulk samples each of
approximately 100 tonnes were investigated.
Comparison studies between the subsamples of the rock chips
and also the bulk sample results were completed. This confirmed
the high nugget effect seen elsewhere at Bendigo. It is possible to
generate a range of grade estimates for the reef depending on the
statistical treatment of the data and the inclusion, exclusion, or
weighting of the various sample types. The accessed portion of
the reef was divided into 30 m blocks and assay data within these
blocks length weighted. This effectively de-clustered the data.
The bulk sample data was included in the calculations as
pseudo-chip samples over the bulk sample width. This provided
the best estimate of the grade of the reef and fell within a range
of possible grades depending upon the estimation mcthodology
employed.
Sheepshead (S2) tonnage estimate. The historic workings and
geology of the southern Sheepshead Line of Reef (including the
S2 ribbon located SO0 metres below surface) were reconstructed
from the available maps, plans and managers reports. The
41h International Mining Geology Conforence
 KESOUKCE EVALUATION OF NUGGETY SLATE-HOSTED GOLD-QUARTZ REEFS

computerised 3D model included all recorded mine development,
stoping, faults and reefs. An estimate of the remnant tonnage
remaining in the Big Blue Neck Keef was determined by
applying the SG of quartz to the volume of the reef remaining
within the model after removing areas of historic development
and stoping. Two Western Mining diamond drill holes provided
confirmation of reef dimensions. Tonnage estimates are
considered to be reasonably accurate.
Sheepshead (S2) grade estimate. Research located a total of 17
historic bulk samples within the Big Blue Reef. A range of grade
estimates could be calculated from these data by varying the
statistical treatment. For instance, simple averaging or weighted
averaging of the data and by dividing the reef into geological
domains and generating grade and tonnages for each domain.
After careful consideration the reef was divided into three
geological domains and a grade determined for each domain.
This provided a best estimate grade within a range of possible
grades depending on the statistical treatment chosen. Assay
results from the Western Mining drilling were not included in the
calculations due to their small sample size and poor repeatability
on re-assay, though they did confirm the tenor of mineralisation.
The new geological model has been used to support the
resource potential estimate of ten million ounces for the New
Bendigo Goldfield. This estimate, which covers only part of the
Goldfield, does not constitute reserves or resources as defined by
the JORC Code, and therefore does not form part of Bendigo
Mining’s published resource base. It is, however, considered to
represent a soundly based and technically supported,
conservative exploration target.
Proposed resource evaluation methodology
Based on the experience gained from exploring and defining
resources and reserves within the Bendigo Goldfield, an
exploration strategy has been developed to overcome the
expected sampling difficulties in the New Bendigo allowing the
estimation of resources and reserves.
Tonnage estimation. Initial diamond drilling utilising orientated
core on 120 m spaced sections will be undertaken from the
current decline, located well above the target reefs (Figure 9). As
reefs display good continuity along strike, this will be sufficient
drilling for an initial tonnage estimate. Once the decline reaches
the target area, fan drilling on 60 m sections will be completed to
refine the tonnage estimates. This level of drilling is expected to
produce reasonably accurate tonnage estimates suitable for
resource definition. As underground development continues, fan
drilling will be closed down to 30 m sections for mine planning
enabling further refinement of the tonnage estimations.

700 m

, I-

PI(;9 - New Bendigo Project, Victoria, Australia. Schematic 3D block diagram showing the potentially mineralised quanz-reef D3
(Deborah Line of Reef). Orientated diamond fan diamond drill holes on 120 m spacings will be collared on the Swan Decline to provide an
initial tonnage estimate. (Source: Bendigo Mining NL).

4th International Mining Geology Conference Coolurn, Old. 14 - 17 May 2000 183
 S C DOMINY. B W CUFFLEY. G F JOIIANSEN. A E ANNELS and I M PLAITEN
Grade estimation. I t is anticipated that a reasonable estimate of
grade and grade distribution within the reefs will be possible by
using a combination of close-spaced drilling and bulk sampling
information.
All mineralised drill core will be halved and assayed for gold
and a suite of trace elements. I t is not expected that reef grade
can be determined directly from this drilling, however it is
anticipated that the drilling will provide:
an indication of the grade of mineralisation;
an indication of the grade distribution;
a correlation between gold grade and indicators such as
gangue mineralogy and textures; and
a correlation between gold grade and a suite of trace
elcmcnts
A systematic program of bulk sampling will be undertaken to
provide grade data. The location of samples will be based on the
interpretation of drilling results, mindful of both structural
setting and assay data. It is envisaged that every second or third
development round in ore will be taken as a bulk sample.
Samples will be an entire individual round of between 60 - 100
tonnes depending upon development size. They will be crushed
to -8 mm and passed through a splitter where 1 to 20 per cent (up
to 100 per cent possible if required) will be split off to a small
pulveriser (hammer mill) and gravity circuit (Knelson
Concentrator). The bulk sampling will provide:
a reasonably accurate estimate of grade; and
a correlation between bulk sample grade and drill grade.
Statistical treatment of grade data sets derived from drilling
and bulk sampling will be undertaken. Bulk sampling is
considered crucial to grade estimation within the New Bendigo.
The current bulk sampling plant is being modified to enable the
minimum sample size to be determined for both crushed and
broken ore for a variety of grade ranges and ore types. Eventually
it is anticipated the sampling plant will be relocated underground
to facilitate sampling and grade estimation.
Proposed resource/reserve classification and reporting
practice
It is anticipated that resources will be restricted to the inferred
and indicated categories due to the difficulty in estimating grade
(Johansen, 1997; Johansen and Stephenson, 1999). Initially bulk
I sampling will be required to define resources. It is hoped that
following the processing of many bulk samples, a correlation will
be established between bulk sampling, trace element
geochemistry, gangue mineralogy, reef texture and drilling
results to enable inferred resources to be defined through drilling.
Indicated resources will most likely always require bulk
sampling. Bulk sampling will always be required to estimate
reserves. It is likely that only probable reserves will be reported,
reflecting the degree of uncertainty with determining grade.
Reporting of probable reserves will be as a best estimate within a
grade range with the proviso that all of the nominated grade
range falls within the economic parameters.
CONCLUSIONS
Nuggety coarse-gold reefs are arguably one of the most
challenging types of mineralisation to evaluate and exploit. This
is generally because of their inherent grade complexities. The
grade characteristics of the deposits make sampling difficult.
Drilling is an excellent indicator of position and structure, but
grade must be evaluated from underground development through
face sampling, etc and bulk sampling. Geological understanding
is the key to improved confidence in the operation. It is vital to
get the geology right before doing the sums - this cannot be
over-emphasised. Detailed geological interpretation supported by
3D computer modelling is critical.
104 Coolurn. Qld, 14 - 17 M a y 2000
The classification and reporting of reserves and resources in a
nuggety reef is not straightforward. By their nature, i t is
extremely difficult to estimate measured resources (and proven
reserves), which has clear negative implications for project
financing (Spark, 1990; Battershy, 1993). Inferred and indicated
resources will require differing levels of diamond drill
intersection, underground development and bulk sampling.
Tonnage can be determined to a reasonable level 0 1 confidence
but not grade, it is therefore difficult to producc bankable
documents. When presenting resource statemelits. i t is
recommended that a best estimate grade be defined within a
grade range. Both grade and tonnage figures will be rounded to
reflect the level of precision of the estimations. For instance
grade may be rounded to one decimal place within a grade range
rounded to the nearest g/t. Tonnage may be rounded to the
nearest I O 000 tonnes. This approach better reflects the current
situation than reporting a single grade. and as a consequence
better informs investors and the stockmarket.
ACKNOWLEDGEMENTS
This on-going work benefits from the support of Cardiff
University, University of Greenwich, SKK Consulting, Reef
Mining NL, Bendigo Mining NL, Welsh Gold PLC and Reef
Mining Services. Discussions with numerous company personnel
are noted. in particular from SMC Resources Ltd, Clogau Gold
Mines Ltd, Elenith Mining Co Ltd, Central Norseman Gold
Corporation Ltd and OCX. Resources. Discussions with Koland
Phelps (Welsh Gold PLC), Dr Steve Henley (Resources
Computing International Ltd), Dr Bon Koyle (Consultant), David
Pelham (Consultant) and Ian Gilmore (AMMTEC Ltd) are
acknowledged. Simon Camm (Camborne School of Mines),
Roland Phelps (Welsh Gold PLC) and AuslMM referees are
thanked for their critical review of this contribution. Presentation
of this paper at The AuslMM Fourth International Mining
Geology Conference was supported by a Royal Society Travel
Grant and the Cardiff University Earth Sciences Staff
Ilevelopment Fund.
REFERENCES
Annels, A E, 1991. Minerul Deposif Evuiuurion. A Prucfictrl AppfJUCli,
486 p (Chapman and Hall: London).
Battershy, J, 19Y3. The Inglewood Goldfield, in Proceedings NtirrfiW
Vein Mininx Seminur, pp 107-108 (The A u s t r ~ l a s i mInstitute of
Mining and Metallurgy: Melbourne).
Cuffley. B W, Kkokowski de Vickerod. J. Evans, T and Frascr, R. 1998. A
new structural model for fault-hosted gold mineralization: an
example from the Nick O’lime oreshoot, Poverty Reef. Tarnagulla.
in VlCMlN ‘98: The Second GPIC Conference on Uevelopmenfs in
Vicforiun Geology and Minerulisufion. pp 53-68 (Australian Institute
of Geoscientists:Perth).
Dorniny, S C and Phelps. K F G, 1996. Gwynfynydd’s gold veins:
geology plays an important role in the mining of complex narrow
veins, Mining Mug, 175(6):32.5-333.
Dorniny. S C and Phelps, R F G, 1997. Small-scale vein-gold exploitation
in Gwynfynydd mine, Wales, UK, in Mine Plunning und Equipnenf
Selection 1997, pp 133-139(A A Balkema: Rotterdam).
Dorniny, S C. Phelps, R F G and Camm. G S. 1996. Geological controls
on gold grade distribution in the Chidlaw Link Zone, Gwynfynydd
mine, Dolgellau, North Wales, UK. Truns lnsf Min Mefull (Section
B). 105: I5 I - 1.58.
Dominy, S C , Annels. A E. Camm. G S, Wheeler, P and Barr. S P, 1997.
Geology in the resource and reserve estimation of narrow vein
deposits. Explor Min Geol. 6(4):317-333.
Dominy. S C , Annels. A E, Camm, G S, Cuffley. B W and Hodkinson. I
P, 1999. Resource evaluation of narrow gold-bearing veins: prohlems
and methods of grade estimation, Truns lnsf Min Merull (Section A).
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Dominy. S C and Platten, I M, 1999. Criteria for the recognition of a
pre-cleavage age for gold-bearing quartz veins in weakly cleaved
terrains, Truns lnsf Min Mefull (Section B), 108:73-76.
4th International Mining Geology Conference
 RESOURCE EVALUATION OF NUGGETY SLATE-HOSTED GOLD-QUARTZ REEFS
Dominy. S C. Cuffley. B W and Johansen. G F, 2ooO. Planning nuggety
vein-gold operations: the role of underground exploration. bulk
sampling and trial mining. in Mine I’lunninfi cmd Equiprnenr
Splec/iori 2000, in press ( A A Balkema: Rotterdam).
Johanscn. G F, 1997. Sampling. assaying and reporting in a coarse gold
environment. paper presented to the Assaying and Reporting
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Sec.orid G P I C Con/erence or1 I1eveloprnenr.v in Vicrorian Geology
u r d Mirwrulisurifiri. pp 47-5 I (Australian Institute of Geoscientists:
Perth).
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reserves and resources in the Bendigo Goldfield, paper presented to
the 7th Victorian Resource Conference. Melbourne. November.
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Rcsourccs and Ore Reserves. Report of the Joint Committee of The
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Institute of Geoscientists and Minerals Council of Australia (JORC).
16 p.
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Laidlaw. N. 1993. Some considerations in the mining of saddles, spurs
and backs on the Bendigo Goldfield. in Proceedings Nurrow Vein
Mining Seminur, pp 25-34 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Platten, I M and Dominy. S C, 1999. Re-evaluation of quartz vein history
in the Dolgellau Gold-Belt. North Wales, UK. Geol Jriurn,
34(4):369-391.
Sharpe. E, 1988. Bendigo gold project. in Bicentennid Gold 1988
Excursion Handbook: Cenrrol Vicrorion Gold Deposirs, pp 32-38
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185
186 Cwlurn. Qld. 14 - 17 May 2000 4th InternationalMining Geology Conference
Multiple Indicator Kriging - Is it Suited to My Deposit?
J Vann’, D Guiba12 and M Harley3
ABSTRACT
Many sample value distributions are highly skewed and present
variograins with high relative nugget effects and/or short-range
structures. In consequence, significant deskewing of the histogram and
variance reduction occurs when transforming between sample and block
support, where blocks are of significantly larger volume than samples.
When making estimates in the mining industry we usually wish to
estimate on the basis of block support rather than sample support. The
sekctive rninirrfi unir (SMU) refers to the minimum support upon which
ordwaste allocation decisions can realistically and practically be made.
The SMU is usually significantly smaller than the sampling grid
dimensions. in particular at exploratiodfeasibility stages. In a non-linear
estimate. for each large block (by convention called a ‘panel’) we
estimate the proportion of SMU-sized parcels above a cut-off grade
threshold. A series of proportions above cut-off defines the SMU
distribution. Use of such non-linear estimates reduces distortion of
grade-tonnage curves and provides a better basis for mine planning and
economic decision-making.At present. Multiple Indicator Kriging (MIK)
is the most widely used technique for performing estimation of
recoverable resources. MIK is not the only approach available and it has
some potentially serious limitations. The MIK technique is described and
a number of theoretical and practical implementation issues are
examined. In particular: MIK’s assumptions about spatial distribution of
grade; the bchaviour of indicator variograms; application of change of
support models; order relationship problems; and modelling the tail of
the distribution. Some simple tests are described which allow us to
determine the suitability of different estimators for a given deposit and
criteria to identify a preferred estimator are also examined. Uniform
Conditioning (UC), an alternative estimator which may be used instead
of MIK. is described.
INTRODUCTION
Since the early-I980s, Multiple Indicator Kriging (MIK) has
become the most frequently applied non-linear geostatistical
estimation method. It is especially widely applied in Australia by
both consulting companies and in-house resource estimation
teams. This paper presents the underlying motivations and
concepts of non-linear estimation and outlines some of the
potential problems with MIK.
CONCEPTS
Linear versus non-linear
A linear interpolator has the following important property: the
weights assigned to each of the N sample locations inside the
estimation neighbourhood are independent of the specific data
values at these locations. This is true for linear geostatistical
estimators, eg Ordinary Kriging (OK) and Inverse Distance
Weighting (IDW).
OK is a more sophisticated linear interpolator than IDW and
was proposed by Matheron (1962, 1963a. 1963b). Note that OK
is, in essence. simply a regression approach to obtaining the
‘best’ weights for a linear estimator. OK’s advantage over IDW
as a linear estimator is that it ensures minimum estimation
variance given:
I. MAusIMM, Technical Director. SRK Consulting, PO Box 943, West
Penh WA 6872.
2. FAusIMM, MMICA. Technical Director. SRK Consulting. PO Box
943. West Perth WA 6872.
3. Principal Geostatistician, SRK Consulting. PO Box 55291,
Northlands 21 16. South Africa.
4th International Mining Geology Conference Coolum, Old. 14 - 17 May1 2000
1. a specified model for spatial variability (eg variogram); and
2. a specified datahlock configuration (in other words, the
‘geometry’ of the problem).
Criteria 2 above involves knowing the block dimensions and
geometry, the location and support of the informing samples, and
the search (or ‘kriging neighbourhood’) employed. Minimum
estimation variance simply means that the ‘spread’ of estimation
errors is minimised by OK. Given an appropriate variogram
model, OK will outperform IDW because the estimate will be
smoothed in a manner conditioned by the spatial variability of
the data (known from the variogram).
Non-linear geostatistical estimators contrast with linear
estimators in that they allocate weights to samples that are
functions of the grades themselves, ie not solely dependent on
the location of data.
Linear estimators have a number of inherent limitations, which
are discussed below.
Limitations of linear estimators
Linear estimates have well known limitations:
1. We may want to estimate the ‘distribution of grades’ within
a block rather than simply estimate the average (or
expected) grade. Linear estimators cannot do this. An
example is the estimation of recoverable resources, ie the
proportion of smaller ‘selective mining unit’ (or SMU)
blocks within a larger block (often called a ‘panel’) that
exceed some cut-off grade. More generally, linear
estimation of non-linear functions of the grades does not
work well, if at all.
2. When dealing with a strongly skewed sample distribution,
eg many gold, tin and uranium deposits, estimating the
mean by a linear estimator (for example by OK) is risky. In
effect, as the weights d o not depend on the sample grades,
the presence of extreme values making any linear estimate
very unstable. In this situation, knowledge of the
distribution of grade within a block may improve our
estimate of the mean grade of that block. This usually
involves making assumptions about the distribution (for
example, what is the shape of the tail of the distribution?)
even in situations where we are ostensibly ‘distribution
free’ (for example using MIK).
Note: In many cases where we require an estimate of
recoverable resources (ie need to account for future selectivity at
mining stage) we are also dealing with highly skewed sample
distributions.
From a mathematical viewpoint, the best possible estimate of a
function of the grade is the conditionul expectation, which is a
complex, non-linear function of the known grades, in general.
Only in the very particular case where the distribution of the
grades is multi-gaussian is the conditional expectation linear
(simple kriging). Geostatistical non-linear estimation is an
attempt to estimate the conditional expectation, and further the
conditional distribution of grade within a panel by using a
broader class of estimators than the traditional linear estimates.
In such a case we wish to estimate the mean grade (expectation)
at some location under the condition that we know certain nearby
sample values (conditional expectation). Interested readers can
get a good overview of the mathematical background to
non-linear geostatistics from Rivoirard ( 1994).
J VANN. D GUIBAL and M HARLEY
In summary, we define non-linear geostatistical estimators as
those estimators that use non-linear functions of the data to
obtain (or approximate) the conditional expectation. Once we
know (or approximate) this distribution, we can predict grade
tonnage relationships (eg ‘how much of this block is above a
cut-off Z , ? At what grade?). In a non-linear estimation we thus
estimate, for each large block (by convention usually called a
‘panel’) the proportion of SMU-sized parcels above a cut-off
grade. A series of proportions above cut-off defines the SMU
distribution,
Available methods
There are many methods now available to make local (panel by
panel) estimates of such distributions, most of which are
summarised and discussed by Vann and Guibal (in press). Thosc
in current use in the mining industry form a more restricted list,
and include:
1. Ilisjunctive Kriging - DK - (Matheron, 1976; Armstrong
and Matheron, 1986a, 1986b);
2. Indicator Kriging - I K - (Journel, 1982, 1988) and variants
(Multiple Indicator Kriging; Median Indicator Kriging,
etc);
3. Probability Kriging - PK - (Verly and Sullivan. 1985);
4. Lognormal Kriging - LK - (Dowd, 1982); and its
generalisation to non-lognormal distributions,
Multigaussian Kriging - MK - (Verly, 1983);
5. Uniform Conditioning - UC - (Rivoirard, 1994); and
6. Residual Indicator Kriging - RIK - (Rivoirard, 1989).
The ‘small block problem’
Why not simply estimate small block (SMU) grades directly by a
linear method? This is the ‘small block’ question, familiar to
every geostatistician. By small blocks we mean blocks that have
small dimensions relative to the sample grid. For example, 5 m x
5 m x 5 m blocks in a deposit drilled on a 30 m x 30 m grid.
Perhaps the question most frequently asked of professional
geostatisticians is: what is a ‘safe’ block size? This is a question
that simply cannot be answered without knowledge of the spatial
grade variability (eg the variogram). However, we make a few of
generalisations. below.
In (unusual) situations where the nugget effect is very low, the
variogram has no pronounced short-range structure, and a long
range that is significantly longer that the drilling mesh, small
blocks may possibly be reasonably estimated using linear
methods.
In general, estimating blocks that are considerably smaller
than the average drilling grid (say appreciably less than half the
size) is potentially very risky. In very high nugget situations
(epithermal and shear hosted gold, for example), even blocks
with dimensions approximating the drill spacing may still be
highly risky.
There is a plethora of warnings in the geostatististical literature
against estimation of small blocks by linear methods (Armstrong
and Champigny, 1989; David, 1972; David, 1988; Journel, 1980,
1983, 1985; Journel and Huijbregts, 1978; Krige, 1994, 1996a,
1996b, 1997; Matheron, 1976, 1984; Ravenscroft and
Armstrong, 1990; Rivoirard, 1994; Royle, 1979). The authors
strongly reiterate this warning.
The commonplace practice of estimating blocks that are far
too small is symptomatic of misunderstanding of basic
geostatistics. In the authors’ experience, many professionals
estimating resources, have not read, or still don’t understand, the
earliest exposition of this problem by Krige (1951). It is
interesting that Krige has felt the need to re-issue his warnings in
recent years (Krige, 1994, 1996a. 1996b).
lea Coolurn. QM. 14 - 17 May1 2000
Even estimating very small blocks directly by n norz-[iricwr
estimator may be incorrect and risky. When using non-linear
estimation for recoverable resources estimation in a mine. the
panels should generally have dimensions approximately equal to
the drill spacing, and only in rare circurnstanccs (ie strong
continuity) can significantly smaller panels be specified
Non-linear estimation provides a solution to the ’sinall block’
problem. We cannot precisely estimate small (SMU-sized)
blocks by direct linear estimation. However, we can estimate the
proportion of SMU-sized blocks above a specified cut-off, within
a panel. Thus, the concept of change of support is critical in most
practical applications of non-linear estimation.
Definition of support effect
‘Support’ is a term used in peostatistics to denote the volume
upon which average values may be computed or measured.
Grades of mineralisation measured on drill hole samples can
be much richer or poorer than grades measured on larger
supports, say SMU blocks. The grades on smaller supports are
said to be more dispersed (variable) than grades on larger
supports.
Note that the overall (or ‘global’) mean grades on different
supports (applying no cut-off-) are the same. However, the
variance of smaller supports is larger. ‘Support effect’ is this
influence of the support on the distribution of grades. Figure I
illustrates the impact of support upon the histogram. Note on
Figure 1 that, if we apply a cut-off above the mean grade, the
recovered portion predicted from samples (v) over est imates the
true recovered proportion on blocks (V). The proportion above
cut-off is shown on the figure by shading.
Z
m
FIG1 - Impact of support on the histogram
The necessity for change of support
Before committing the capital required to develop a selective
mining operation, an economic decision is made based on an
estimate in which (usually) the only grade data arc from
exploration drill holes. Because mining does not proceed with a
selection unit of comparable size to the samples, the difference in
support between the samples and the proposed SMU must be
accounted for in any estimate to obtain achievable results. When
there is a large nugget effect, or (equivalently) an important
short-range structure, then the impact of change of support will
be pronounced.
41h International Mining Geology Conference

In practice. we see that the histogram of samples usually has a
much longer ‘tail’ than the histogram of mining blocks. Note that
simplistic variance corrections, for example affine corrections, do
not reflect the fact that, in addition to variance reduction, change
of support also involves symmetrisation of the histogram. This is
especially important in cases where the histogram of samples is
highly skewed (cg most precious metal deposits, uranium
deposits, impurity variables for iron, bauxite and manganese
deposits, etc).
Recoverable resources
‘Recoverable resources’ are the portion of in siru resources that
arc selected as ‘ore’ during mining. The concept of recoverable
resources involves both technical considerations. such as cut-off
grade, SMU definition, machinery selection, etc, and also
economiclfinancial considerations such as site operating costs,
commodity prices outlook, etc.
The end result of an estimation of recoverable resources is, for
each panel, a tonnage and grade of material above cut-off within
that panel, assuming a specific SMU. The tonnage is simply the
proportion of the panel above cut-off multiplied by the panel SG.
The product of rccovered grade and recovered tonnage yields
rccovered metal.
The end result of a non-linear estimate tells us what percentage
of the panel is likely to be mined above cut-off, but does not tell
us which part of the panel will be abovehelow cut-off. In other
words, grade control drilling during production will usually be.
required to define ‘dig lines’. The recoverable resource estimate
will, however. be a better basis upon which to estimate the cash
value of each panel when performing economic optimisation or
mine design (for example pit optimisation).
INDICATOR GEOSTATISTICS
Indicators
The use of indicators is a strategy for performing variogram
analysis in order to characterise the spatial distribution of grades
at different cut-offs. The transformed variable has a binary
distribution (everything is now a I or a 0). and so by definition
docs not contain extreme values. Furthermore, the indicator
variogram for a specified cut-off L:is physically interpretable as
characterising the spatial continuity of samples with grades
exceeding z(.. Indicator transformations may thus be conceptually
viewed as a digital contouring of the data. They give very
valuable information on the geometry of the mineralisation.
A good survey of the indicator approach can be found in the
papers of Journel (eg 1983, 1987. 1989). A simple, easy to
follow case study is provided by Hohn (1988).
An indicator variable /(x, z(.) is defined, at a location x, for the
cut-off z( as the binary function that assumes the value 0 or I
under the following conditions:
/(x, zc) = 0 if a x ) Iz(
/(x. zc) = 1 if Z(x) zc
After transforming the data, indicator variograms can be
calculated easily by any program written to calculate an
experimental variogram. An indicator variogram is simply the
variogram of the indicator.
Indicator kriging
‘Indicator kriging’ (or IK) is kriging (usually OK) of indicator
transformed values using the appropriate indicator variogram as
an input. An IK estimate (ie kriging of a single indicator) must
always lie in the interval [O,I].
The resulting estimate can be interpreted as either:
4th International Mining Geology Conference Coolurn. Qld,
MtJLTIPLE INDICATOR KRIGING - IS IT SUITED TO M Y DEPOSIT’?
probabilities (the probability that the grade is above the
specified indicator); or
proportions (the proportion of the block above the specified
cut-off on dura supporr).
Multiple indicator kriging
Multiple indicator kriging (MIK) involves kriging of indicators at
more than one cut-off (see various publications hy Joumel,
Hohn, 1988 and Cressie, 1993). MIK is an approach to
recoverable resources estimation which is robust to extreme
values and is practical to implement. It is fair to say that it is
currently the method most widely used in the mining industry for
estimating recoverable resources.
Theoretically, MIK gives a worse approximation of the
conditional expectation compared to disjunctive kriging (DK),
which can be shown to approximate a full cokriging of the
indicators at all cut-offs. However, MIK does not have the strict
stationarity restriction of DK (see Vann and Guibal, in press).
The major practical difficulties with MIK are summarised
below. Be aware that these are not merely theoretical points -
their impact on the reliability of results (in each case) can be
significant.
Adequate representation of the histogram
In MIK we discretise the histogram of sample values into n
classes each bounded by an upper- and lower-cut-off boundary
value. The number of classes and the values of their bounding
values is decided by the practitioner. Particular problems occur in
three regards:
The values are often selected to be evenly distributed with
respect to the percentiles of the data distribution. For
example, boundaries are set at the deciles of the
distribution. The problem here is that we may end up with a
discretisation that does not adequately resolve the more
critical parts of the histogram. Alternative approaches
include additional discretisation of these critical parts (the
tail in particular) or discretisation such that equal metal is
contained in each defined class. This is certainly preferred.
The tail of the distribution generally has very few samples
(for example in gold deposits). This means that a model
must be defined to give the ‘shape’ of the histogram in the
tail. Choices between different models may materially
affect the estimates at higher cut-offs, but there is little
objectivity in choosing between models.
For the grade (as opposed to the tonnage) estimation, it is
necessary to have estimates of the average grades of the
classes. The common practice is to choose as mean grade of
a class the average value of the samples belonging to that
class. A possible exception is the last class where often a
different estimate is chosen: median or trimmed mean for
instance. Now the consequences of this choice which is
often arbitrary can be very significant and strongly impact
the estimation of the richest zones of the orebody.
Variography
The variography of indicators presents several difficulties:
I. ‘Destructuration of high-grades’ - the variograms for higher
cut-offs often tend towards pure nugget effect. With such
variograms, at the estimation stage. large search
neighbourhoods should be used, in order to avoid
conditional biases. The impact of this is to distribute metal
in the upper class(es) very smoothly.
2. The number of variograms required may be large. In
practice this leads to three possible solutions:
14 - 17 May1 2000 189
J VANN, D G U I R A L and M HARLEY
a. the job takes a lot longer (disliked intensely by
management!);
b. the job is rushed and insufficient time is taken with
variogram modelling; or
c. automated variogram modelling routines are
employed.
The last two options (b) and (c) can lead to compromised
estimation of resources, because the kriging results may be
sensitive to the variography. In particular (as we will see when
we discuss order relation problems) we must ensure that the
variograms at various cut-offs are theoretically compatible, or
results can be fatally compromised.
Order relation problems
Because indicator variogram models may be inconsistent from
one cut-off to another we may estimate more recovered metal
above a cut-off 4 2 than for a lower cut-off zcl. where zcl < zc2,
which is clearly impossible in reality! If results are inconsistent
from one cut-off to another, in this manner, we say we have an
order relation problem.
While there has been emphasis in published literature on the
triviality of order relation problems and the ease of their
correction, the authors have observed quite severe difficulties in
this regard with MIK, especially when anisotropies show
significant changes and search neighbourhoods are modified
from one cut-off to another. The theoretical solution is to account
for the cross-correlation of indicators at different cut-offs in the
estimation by cokriging of indicators (Vann and Guibal, in
press), but this is completely impractical from a computational
and time point of view.
Most commercial and public domain MIK programs correct
order relation problems by smoothing the grade-tonnage vector
of a panel if they violate order relations. Too often, the correction
algorithms are not documented and/or not reported. The authors
find this disturbing and observe that such corrections are entirely
arbitrary. From an auditing viewpoint, it is very important that
the number and magnitude of the corrections are reported: if they
are numerous and significant, they may have a material impact
on the stated Resources.
It is important to note that order relation violations are
problems of methodology, and can be reduced or eliminated by
modifying the methodology. However, mechanical fixes (such as
smoothing ‘misbehaving’ estimates!) may simply disguise the
inherent distortion of the grade-tonnage relationship estimated by
MIK.
Order relationship problems can be reduced by ensuring that:
I. The variogram models at various cut-offs are ‘theoretically
consistent’. The most obvious case is when all the indicator
variograms are proportional, allowing the use of a single
indicator variogram model (this is Median Indicator
Kriging or ‘Median IK’ - see below). Unfortunately, it is a
very rare occurrence that the indicator variogram at all
cut-offs can be reasonably approximated by a single
(proportional) model. In the general case, because the
indicator variables at various cut-offs are correlated, there
are also relationships between the corresponding
variograms, which need to be respected.
2. The search volumes defined during kriging at various
cut-offs are the same (identical shapelvolume, ie the same
informing data are used across all cut-offs). Unfortunately,
this is only a good idea when the variograms for all
indicators have roughly the same shape (or are
proportional) which is not the usual case for mineral
depositst. Major changes in anisotropies are in particular
t Again this is the assumption made in Median Indicator Kriging.
190 Coolurn. Old. 14
dangerous and this is the reason why sonic authors
(Deutsch and Lewis. 1992) propose to use the same
elementary structures for all cut-offs. with partial sills
slowly changing.
3. When increasing cut-offs, at least one data in the search
neighbourhood will change from 1 to 0. Clearly, this is not
possible i f the cut-offs are defined once and for all. Thus,
the idea is to define cut-offs at a local level (for each search
neighbourhood). depending on the local data. The same
number and types of structures are used for all cut-offs. but
the partial sills are linearly interpolated between cut-offs
(Deutsch and Lewis, 1992). Note that this procedure is
fairly complex and tends to become purely theoretical, the
link with the experimental variograms getting very tenuous!
Change of support in MIK
Change of support is not inherent in the MIK method. We apply
change of support in MIK as a post-processing step. The
estimation and change of support are thus not ‘integrated’.
In the authors’ experience, many practical applications of MIK
involve using the affine correction, which assumes that the shape
of the distribution of SMU’s is identical to that of samples, the
sole change in the distribution being variance reduction as
predicted by Krige’s Relationship (David, 1988).
Clear warnings can easily be found in the literature by lsaaks
and Srivastava (1989). Vann and Sans (1995), among others,
about the inherent deskewing of the distribution when going
from samples to blocks. The affine correction assumes nu
deskewing, and thus is not suited to situations where there is a
large decrease in variance (ie where the nugget is high and/or
there is a pronounced short-scale structure in the variogram of
grades).
Other approaches can be utilised with MIK. eg direct or
indirect lognormal corrections (very distribution dependent), or
conditional simulation (often perceived as too complex and
costly in time). The authors have also seen assumptions of
normal (or Gaussian) block distribution. In this case, the
underlying assumption is that block grades are totally deskewed
(symmetrical). Our experience suggests that this assumption may
be true only for very high nugget situations.
Whatever the method used, there is no guarantee that the
corrections applied at a local level are consistent with the same
type of correction applied at a global level, and this is not very
satisfactory, to say the least.
Aside: median indicator kriging
Median indicator kriging is an approximation of MIK which
assumes that the spatial continuity of indicators at various
cut-offs San be appLoximated by a single structural function, that
for zc = m , where m is the median of the grade distribution. This
has obvious advantages in speed (only one variogram model to
deal with) and in reduction of order relationship problems (see
above).
In Median IK the indicator variogram at (or close to) the
median is considered to be ‘representative’ of the indicator
variograms at other cut-offs. This may or may not be true, and
needs to be checked. In the authors’ experience, most precious
metal deposits do not even approximate this assumption of
Median IK.
The most obvious advantage of median indicator kriging over
MIK is one of time (both variogram modelling and estimation).
The critical risk is in the adequacy of the implied approximation.
‘If there are noticeable differences in the shape of indicator
variograms at various cut-offs, one should be cautious about
using median indicator kriging’ (Isaaks and Srivastava, 1989,
p 444).
- 17 May1 2000 41h International Mining Geology Conference
 MULTIPLE INDICATOR KRIGING - IS IT SUITED TO M Y DEPOSIT?
DISCUSSION: UNDERLYING ASSUMPTIONS OF
METHODS
MIK, like all other non-linear geostatistical methods, assumes a
model for spatial distribution of grades (contrary to the assertions
of many practitioners that MIK is ‘free of assumptions’).
The estimation of recoverable resources, in the simplest case,
corresponds to a two-fold problem: estimation of geometry and
estimation of grade.
A mineralised envelope is usually inferred from geological
interpretation. Within most orebodies there are good reasons to
suspect that the mineralisation will ‘stand-up’ within a broad
envelope at a low grade or ‘geological’ cut-off. More concern
arises when a cut-off is considered that is significantly higher
than this ‘geological’ cut-off. A traditional practice for mining
geologists consists of drawing ‘nested’ envelopes (or contours),
with the highest grade in the centre and grade decreasing
systematically towards the border in any direction’. Let’s call the
resulting model ‘Situation 1’.
Contouring grades may be helpful when interpreting possible
geological trends in the mineralisation, but experienced mine
i This situation is the underlying assumption for methods like
Uniform Conditioning. discussed below. and it commonly suits many
metalliferous deposits. in the authors experience.
2a : Situation 1. Model with “Border effect”
4th International Mining Geology Conference Coolurn. Qld.14 - 17 May1 2000
geologists know that in some cases it departs completely from
reality. The mineralisation can in reality exhibit more-or
less-rapid change in grade at different scales. At the scale of an
SMU, high-grade can be adjacent to sterile or medium-grade. We
will call such a situation ‘Situation 2’.
Geostatisticians say that in case of ‘Situation I ’ there are
‘border effects’ or ‘edge effects’ (see Figure 2a). ie going from
grade 1 to grade 3 one will encounter grade 2. In the case of
‘Situation 2’ (see Figure 2b), we say that there are ‘no border
effects’, ie that going from grade 1 we can meet grade 2 or grade
3. Several other cases can occur, with more or less strict
transitions, including the case of total independence between
zones at different grades.
Since the early- 1970s several techniques have been used for
estimating recoverable resources, based on either
multi-lognormal or multi-gaussian distributions, cokriging of
indicators (DK)or kriging of indicators (MIK).
Recall the definition of indicators introduced previously:
I(x, k ) = 0 if Z(x) 5 zc
I(x, zc) = I if Z(x) > 4.
The indicators are generally not independent: at a point x, with
two cut-offs Zci > Zc2, if /(x. zci) > 1 then, I(x, ~ 2 >) I and there
is dependence between indicator values at these two cut-offs.
MIK presumes that this dependence does not exist. and this is
a fundamental source of order relation problems.
191
 J VANN. D GUIBAL and M HARLEY
I When estimating by any non-linear technique, do we
implicitly choose a particular ‘border model’, or can we identify
simply in which situation we are: ‘border effect’ or ‘no border
effect’, to determine which estimating technique is more suitable
for our deposit? The answers are given in some detail in
Rivoirard (1993). but in short, the basic solution consists of:
I. Computing the variograms and cross variograms at
different cutoffs z0, z l , 22, .. . zi. This can be automatically
performed with modern software (eg IsatiS”M, from
Geovariances).
2. Comparing the cross variograms of indicators y7071(h),
, depend heavily upon the quality o f the kriging of the panels. As
y?ozz(h). ... ylOli(h) 10 the variograms of the lower cutoff
indicator y,o(h).
Then the following situations can occur:
I. If the ratio y ~ O Z i ( h ) ~ ~ O ( hincreases
) with ( h ) there are
‘border effects’, and a ‘diffusion-type’ model is applicable
(eg discrete gaussian model, lognormal model).
2. If the ratio ya,;(h)/ya(h)is constant for a given cut-off zi, ie
yzo,;(h) and ya(h) are proportional, then the different
cut-offs are nesting without edge effects one within the
other, we are in a ‘no border effect’ situation. In such case a
residual indicator kriging (RIK) method is applicable
(Rivoirard, 1989).
3. If all variograms and cross-variograms are proportional to
the same model y(h), we have a particular model called
‘mosaic model’ (see Figure 2c), which corresponds to a
situation where the separate kriging of indicators can
theoretically he applied (Journel, 1982). This is the implicit
assumption made when using Median Indicator Kriging.
This type of calculation has been performed in a detailed
variographic study of a Western Australian gold deposit by two
of the authors (see Figure 3). The results show that a complex
situation can occur with a ‘border effect’ model occurring in two
main directions of variogram anisotropy, and a ‘no border effect’
occurring in the third direction of anisotropy. In this case the use
of both ‘multi-gaussian’ and ‘indicator residuals’ would have to
be tested and the results carefully compared.
0.075
0.050
Ind05flnd50
’
0.025
0.000
Rc; 3 - Variogmm across veining of indicator at cut-off 0.5 g/t and cross
variogram of indicators at higher cut-offs.
192
Cwlum, Qld. 14 17 May1 ZOO0
Aside: Uniform Conditioning
Uniform conditioning (UC) is a variation of Gaussian disjunctive
kriging DK more adapted to situations where the stationarity is
not very good.
In order’ to ensure that the estimation is locally well
constrained. a preliminary ordinary kriging of relatively large
panels is made, and the proportions of ore per panel are
conditional to that kriging value.
All three authors of this paper have concluded through
experience that UC is a robust technique. However, it does
for DK, the discrete Gaussian model ensures consistent change
of support.
The authors believe that this method (which has seen increased
in usage in Australia in recent years) has much to recornmend it.
It is more theoretically consistent with the observed geological
distribution of grade in many deposits. i t has a robust change of
support and it suffers much fewer order relationship problems
than MIK. For more details on UC refer to Rivoirard (1994).
RECOMMENDATIONS
This papers title asks a question ‘is MIK suited to my deposit”!
As with most worthwhile questions in geology and geostatistics,
the answer requires that we ask further questions. The key
questions are:
I. What are the relations between indicator variograms and
cross variograms in my deposit‘?
2. Is there significant deskewing of the histogram when
changing support?
If the answer to question one above suggests that we have a
‘border effect’ situation then we should he wary of MIK. If the
answer to question two is ‘yes’ than we should worry about
affine corrections. In both cases we would recommend UC as an
alternative method (which is, coincidentally, Faster to
implement).
If the answer to question one above, suggests that we have ‘no
border effect’, then we recommend consideration of RIK
(because of the improved change of support compared to MIK).
B o t h UC and RIK require additional knowledge and skill in
geostatistics, compared to MIK. However, when large
investments are made on the results, this is a small price to pay
for more realistic assessment of mineral deposits.
CONCLUSIONS
‘Small block’ OK or IDW estimates should no longer be
acceptable as inputs to important financial decisions.
Understanding the underlying assumptions and
mathematics of these methods is critical to making
informed choices when selecting a technique.
Testing of assumptions is rarely performed, in our
experience. We therefore recommend that such tests be
implemented (see Rivoirard, 1994).
The issue of change of support is critical in estimation of
recoverable resources. Our major criticism of MIK, the
most widely applied non-linear estimation method at the
end of the 20th century, centres on change of support. The
whole problem of recoverable reserves is the problem of
chunge of support. We recommend that practitioners
become very familiar with the issue of change of support
and bring a sophisticated appreciation of this problem to
their practice.
-
4th International Mining Geology Conference
 MULTIPLE INDICATOR KRIGING - IS IT SUITED TO MY DEPOSIT?
ACKNOWLEDGEMENTS
The authors wish to acknowledge Henri Sanguinetti, an old
colleague of two of us (IIG and JV) who contributed ideas to the
final discussion part of our paper. All three authors have
benefited from discussions with our professional geostatistical
colleagues at SKK. We also wish to acknowledge the support of
SRK in the preparation of this paper, and the valuable experience
gained by working over many years with clients making real
decisions on real projects.
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194 Coolum. Old. 14 - 17 May1 2000 41h lnlemalional Mining Geology Conference
 Mining Bench Height Evaluation for the Wallaby Resource -
A Conditional Simulation Case Study
I M Glacken', M Noppe and M Titley3 *
ABSTRACT calculated. These simulated models can then be compared to the
resource estimate and uscd to calculate more realistic dilution
A study on the feasibility of mining the recently discovered Wallaby gold
deposit is due for completion by mid-2000. Open pit mining is the and ore loss values to assist in determining the economic
favoured method. Determination of the impact of mining bench height on sensitivity of a particular mining method.
the recovery of ore. including the estimation of dilution and ore loss, is Time constraints on the study meant that thc entire model area
critical to the economics of the operation. could not be simulated, so a representative volume of the
Conditional simulation was used to derive a number of gold estimation resource was selected. To ensure that the results can be used in
scenanos within a typical volume of the deposit. These scenarios were the feasibility study, the kriged resource model was calibrated to
interrogated for a selection of mining bench heights and ore block a specific SMU. and adjustment factors provided for alternative
dimensions. The results were reponed 3 s a range of grade tonnage
relationships and compared to the kriged resource model. This allowed
SMUs.
the resource model to be calibrated to a specific mining bench height and The spread of results from the best, median and worst
' ore block size. Once calibrated. more realistic dilution and ore loss values simulations also provide an indication of the confidence of the
for a number of mining bench heights were calculated from the resource kriged grade estimates for the different zones of mineralisation
model. These values were then used to determine the economic within the deposit and highlights areas of significant uncertainty.
sensitivity of particular mining methods.
The spread of results from the simulations also provided an indication
of the confidence in the kriged grade estimates for the different zones of THE WALLABY DEPOSIT
mineralisation within the deposit and highlighted areas of any significant
uncertainty. Background
Wallaby is located in the North Eastern Goldfields region of
INTRODUCTION Western Australia, approximately 27 k m south-southwest of
Wallaby is one of Australia's largest gold discoveries in recent Laverton and 1 1 km southwest of the Granny Smith Mine, at
years. Two exploration tenements cover the deposit. The Granny latitude 28" SI'S, longitude 122" 19'E (Figure I ) . The deposit lies
Smith Joint Venture (Placer Dome Asia Pacific 60 per cent and on the northeastern shore of Lake Carey, which is a large salt
Delta Gold Ltd 40 per cent) (GSJV) holds Wallaby, which is lake. The discovery history is complex and has been published in
situated within the southern lease and includes the majority of Nielsen and Currie (1999).
the resource. Homestake Gold of Australia Ltd holds Just In
Case which is in the northern lease. The Wallaby Mineral
Resource (Indicated and Inferred) as at 31 December 1999 was
5 2 million tonnes at 2.7 g/t for 4.5 million ounces of gold at a
1.0 g/t cut-off. The GSJV is completing an open pit mining
feasibility study that is due for completion around June 2000.
The nature of gold mineralisation in a deposit determines the
dilution (waste mixed with ore) and ore loss (ore lost to waste)
for different mining block sizes, referred to hereafter as the
selective mining unit (SMU). A feasibility study must optimise
the economic benefits gained from using larger ore mining
equipment, hence larger SMUs. against the potential loss of
revenue due to dilution and ore loss.
Conditional simulation is a tool which will generate a number
of equally-likely images of the interpolated data. Importantly,
simulation honours the statistical distribution of the input data.
This dilfers to other estimation techniques which usually produce
a single output image with a smoother statistical distribution than
that of the input data, particularly when the spacing of the input
data (drill holes) is much larger than the SMU. This smoothed
model does not adequately represent the actual grade tonnage
relationship of the deposit, and so cannot be used to determine
Fic, I - Wallaby deposit location plan
the impact of different SMU sizes. By deriving a number of gold
estimation scenarios using conditional simulation, a range of
possible grade tonnage relationships for a given SMU can be
Recent exploration history
The GSJV commenced fieldwork at Wallaby during November
I. FAuslMM. Snowden Mining Industry Consultants. PO Box 77. 1997. The program comprised reconnaissance aircore drilling.
West Perth WA 6872.
Follow-up drilling in June 1998 confirmed continuity of grade
2. MAuslMM. Snowden Mining Industry Consultants. PO Box 77. between the initial anomalies. Reverse Circulation drilling began
West Perth WA 6872. later that month but had difficulty penetrating the thick
3. MAuslMM. Placer Granny Smith, PO Box 33. Laverton WA 6440. water-saturated lacustrine clays. A combination of aircore
pre-collars with diamond tails proved to be the most cost

41h International Mining Geology Conference Coolurn. Old. 1 4 . 17 May 2000 195
 I M GLACKEN. M NOPPk and M TITLEY

effective method of drilling. By December 1998, 65 holes for a

total 22 S ( x ) m were completed on 100 m centres. This drilling
broadly outlined the lateral limits of the deposit. An inferred
resource of 30 Mt at 2.4 g/t for 2.3 Moz was reported at a cut-off
of I .o g/t.
Drilling continued through 1999, concentrating on; infill to
increase grade confidence, determination of open pit mining
limits, improving geological understanding, collection of core for
metallurgical testwork, de-watering pump tests and geotechnical
evaluation.

Project status
An open pit mining feasibility study is due for completion
around June 2000. The current combined Indicated and Inferred
Mineral Resource is 5 2 Mt at 2.7 g/t for 4.5 Moz gold at a 1.0 g/t
cut-off. The potential open pit mine covers an area of 1300 mNS
x 1000 mEW x 300 m vertical.
A program of diamond drill holes is being completed to test
extensions to the Wallaby mineralisation at depths down to
1000 m below the surface. Preliminary exploration of possible
southern extensions of the mineralisation system beneath the
Lake Carey sediments is on-going.

Regional geology of Wallaby

The Wallaby deposit is located within the Eastern Goldfields
Province of the Archaean Yilgarn granite-greenstone terrain of
Western Australia. The geology within this zone has been
divided into two associations; association I , comprising mafics,
ultramafics and banded iron formations, and association 2,
comprising andesitic volcanics and volcaniclastics interbedded
with mafic volcanics and overlain by clastic and chemical
sediments. Association 2 occurs in the western and eastern parts
of the district, while association 1 occurs in a north-south
corridor through the central part of the Laverton area. Wallaby
occurs within association 1 and is located on the eastern flank of
the MI Margaret Anticline. Figure 2 shows the location of
Wallaby and the regional geology around the Laverton area
Deposit geology
The Wallaby deposit is covered by 1 to 20 m of aeolian dune
sands and between 24 to 120 m of Tertiary lake clays and sands.
This transported cover is shallowest on the eastern margin and
steadily thickens to the west. A deep regional palacochannel
trending south-southeast runs through the western side of the
Wallaby deposit. No economic gold mineralisation is hosted in
the transported cover.
Oxide saprolitic material occurs mainly in the eastern part of
the deposit. Saprolitic material in the west has been mostly
stripped by the palaeochannel. Approximately ten per cent of the
gold in the Wallaby deposit is in oxide material.
The host rock at Wallaby is an Archaean matrix-supported
polymict conglomerate. The dominant clast type is mafic
volcanics. Other clast types include felsic porphyries, sediments
(mostly banded iron formations and cherts), and carbonate and
quartz clasts. The conglomerate is predominantly massive,
although occasional graded bedding, grit beds and clast
alignment indicate the unit is upright and has a dip of around 45”
to the south east. The conglomerate has been metamorphosed to
upper greenschist facies.
Two north-south trending subvertical dyke swarms have
intruded the conglomerate. The dykes represent a fractionated
alkali syenite suite and range in composition from various
monzonites through syenites, to carbonatitie syenites and a
carbonatite. A number of the more alkali-rich fractionates have
been emplaced as sills within the shear structures. These
generally have an east-west orientation and southerly dip.
FIG2 - Wallaby deposit regional gcology
Mineralisation occurred after the emplacement of the fclsic and
alkali intrusives but prior to the emplacement of the carbonatitic
fractionate. Figure 3 shows the geology in schematic section.
Structure, mineralisation and alteration
Mineralisation occurs along shears formed during a dominant top
block north to north east thrust regime. The shear zones display
limited shear foliation. This is due to the ability of the host
conglomerate to absorb large amounts of strain with limited
physical deformation The main shears are relatively flat lying,
with a gross gentle dip towards the south east. Lower grade
mineralisation is associated with steeper on echelon linkage
structures, with a dominant dip to the north east. The shear zones
are defined more by alteration than foliation, and range in size
from I to 40 m.
The alteration at Wallaby can be classified as an inner,
intermediate, or outer halo.
The inner halo defines the dominant ore-zones and is a
dolomite-albite-pyrite-chalcopyrite and gold assemblage. It is
bleached, lacks a significant magnetic response, and primary
textures are often obliterated. Small amounts of visible gold
occur in small, late-stage quartdcarbonate veins. Gold is closely
related to pyrite content. The highest grades tend to be related to
abundant fine pyrite. Mineralisation behaves differently in the
intrusives than in the conglomerate, with the grades tending to be
lower in the intrusives.
The intermediate halo comprises biotite, pyrite, magnetite and
chalcopyrite. It is dark green to brownish grey and may have a
significant magnetic response. This alteration is derived from the
same fluids as the inner zone but with a lower fluid to rock ratio.
A petrological study of the magnetite shows magnetite and pyrite
arc in textural equilibrium throughout the deposit at all scales.
This implies they formed at the same time.

196 Coolum. Qld. 14 - 17 May 2000 4th InternationalMining Geology Conference

 MINING BENCH HEIGHT EVALUATION FOR THE WALLABY RESOURCE
431 80OE 432000E
1
I I
$00 R L
300 F.L
100 RL
100 KL
0 RL
Fici 3 - Wallaby deposit: schematic cast-west section -regolith and geology.
The outer halo is generally unmineralised conglomerate. It is
split into a chlorite-albite assemblage and an actinolite-
magnetite-pyrite alteration. The actinolite assemblage has a
significant magnetic response and is the distal alteration from the
mineralising fluid. The chlorite-albite assemblage is from the
regional upper greenschist facies metamorphism.
Description of mineralisation zones
There are two main flat lying ore-zones, termed SO and 60,
which are separated by about 100 to IS0 m. These zones range in
thickness from 5 to 35 m. Ore-zone 40 is thought to be a flat
lying above ore-zone SO, but is almost entirely in oxide and is not
as well constrained as the other ore-zones.
The north east dipping ore-zones. 240 and 250, lie above and
below ore-zone SO respectively. Ore-zone 240 is well
constrained, is very strongly mincralised, and ranges in thickness
from 3 to 25 m. Ore-zone 250 comprises a series of stacked
northeast dipping structures which cannot be easily correlated
between holes. There is structural evidence indicating that parts
of ore-zone 250 flatten,. and in some cases dip to the south.
Ore-zone 250 is not well constrained and has the lowest grades.
The individual ore-zone 250 structures range in thickness from
2 to 7 m.
Ore-zone 70 lies directly below ore-zone 60 and being the
deepest, is not well defined by drilling. The current interpretation
of ore-zone 70 is a series of gently northeast dipping stacked
planar zones. The stacking suggests it may be similar to ore-zone
250 but with areas of better grade continuity.
The ore-zones cross intrusivelconglomerate boundaries with
little change in geometry. There is a subtle increase in gold
dispersion through the felsic intrusives, especially for the very
low gold values. Figures 4 and 5 show the ore-zones in schematic
north-south and east-west section.
4th International Mining Geology Conference Coolum, Old, 14 - 17 May 2000
432200E 432400E 4326170
RESOURCE ESTIMATION
Solid 3D triangulations representing the major mineralised
ore-zones were created. Mineralised ore-zones were based on a
structural model and defined by alteration, depleted magnetic
susceptibility and a gold grade cut-off around 0.2 g/t. Ore-zone
250 consists of a number of small. poorly defined mineralisation
zones that could not be adequately linked to form a
homogeneous interpretation. The ore-zone lies between the base
of ore-zone 50 and the top of ore-zone 60 and there is a relatively
high proportion of unmineralised material included within this
profile.
The geometry of the intrusives could not be interpreted in
enough detail to create a solid wireframe, as it is not uncommon
for a drill hole to intersect intrusives having a thickness greater
than 100 m while surrounding holes may not contain any
intrusives greater than 1 m thick. Also, the majority of the
intrusives are unrooted, ie drilling continued through them and
back into conglomerate. The geometry of the intrusives is an
important issue as the intrusives have a different gold grade
distribution. An intrusive lithology code was assigned to samples
from the geology logs. This code was initially used for statistical
analysis and then later, during block model construction, to
estimate the proportion of intrusive material in a model block.
Drill hole samples were assigned weathering, lithology and
ore-zone codes, by using the wireframe models and logging
codes. The three codes were combined into a single unique open
pit ore-zone code (OPDOM) representing the different
combinations of codes. Two metre downhole composites were
created for statistical analysis, variography and grade estimation.
The 2 m composite length was selected as it provides the best
resolution of the ore-zone geometry while minimising the mix of
short and long composites. All composites were terminated on
changes within the OPDOM code to ensure different materials
were not mixed.
197
 ~-

I M GLACKEN. M NOPPE and M TITLEY

431800E 432000E 432200E 432400E 432600E

400 R1 -

300 RI

!OO RL

100 RI

0 RI

FIG4 - Wallaby deposit ore-zone georneuy, east-west section

807800N 808000N 808200N 80840ON 808600N

-
100 RI

100 RL

100 RL

00 RI

0 RI

Flci 5 - Wallaby deposit ore-zone geometry, north-south section.

Coolurn. Old. 1 4 . 17 May 2000 4th International Mining Geology Conference

198
 MINING HENCH HEIGHT EVALUATION FOR THE WALLABY RESOURCE
Statistical analysis and variographic analysis of the composites
was completed, with the following significant conclusions:
The grade of felsic intrusive hosted mineralisation needed to
he estimated independently of the conglomerate-hosted
mineralisation, as it has a different grade distribution and
different variogram parameters.
The alkali intrusive samples could be combined with the
conglomerate samples for the following reasons:
I The number of alkali intrusive samples within some
ore-zones is insignificant.
2. Where significant number of samples are available the
grade distribution is similar to the conglomerate.
3. The alkali intrusive geometry was difficult to model
separately and too few samples were available to use
proportional indicator modelling. Thus, the conglomerate
and alkali intrusive material were combined, and are
referred to as ‘conglomerate’ in the rest of the paper.
Hard mineralisation boundaries must be used to constrain the
mineralisation within ore-zones. However, ore-zones that
intersect each other (such as 240 and 50) may use samples
from either ore-zone.
Ordinary Kriging with cutting would be suitable for grade
estimation for the following reasons:
I . The variography study showed no spatial grade
anisotropy. That is, high-grades were not oriented
differently to the lower grades.
2. The distributions within each ore-zone and lithology
have a relatively low degree of skewness.
3. Only 0.1 per cent of high-grade composites required
trimming.
4. Lack of geological evidence for the alignment of grades,
either high or low, in veins, shoots or any structures
within the ore-zones.
The ore-zones have considerable local variation, so the average
orientation does not give the best result for variography and
grade estimation. This is especially relevant for ore-zones 50, 60
and 240 as their orientations are not consistent throughout the
deposit. To avoid having to split these ore-zones into numerous
smaller zones, the samples were unfolded for variography and an
in-house anisotropic modelling package was used for the grade
estimation. The Placer Open Pit software allows construction of
an anisotropy model. The anisotropy model is a block model
containing local azimuth, dip and plunges for each block. This
local information is uscd as directions for the search and
variogram calculations when performing grade estimations.
A geology block model was constructed using a constant
I O mN x I O mE x 5 mRL block size. An OPDOM code was
assigned from the relevant wireframe models. As an accurate
geology model of the felsic intrusives could not be created, an
indicator method was used. The proportion of felsic intrusive
within each block was calculated using ordinary kriging of
conditional 0 (absence of felsics in a sample) and 1 (felsic
sample) indicators.
Both the conglomerate and felsic intrusive grades were
estimated for each model block using ordinary kriging. A final
average tonnage-weighted gold grade was calculated for each
model block, bascd on the proportions of conglomerate and felsic
intrusive within each block.
CONDITIONAL SIMULATION
Objectives of conditional simulation
Conditional simulation is a technique which has developed as an
alternative to estimation techniques such as polygons, inverse
distance weighting, ordinary kriging or indicator kriging.
4th International Mining Geology Conference Coolum, Qld. 14 - 17 May 2000
Simulation generates many equally likely scenarios, in contrast
to estimation which provides one only. As the name implies, i t
uses the principles of Monte Carlo sinzulation. random number
drawing from a specific distribution, while ensuring that the
outcome is conditional to the input data and the geological
model. In particular, each simulation honours the statistical
distribution of input grades (the grade returned at any point
where a data value exists is that data value) including the
variability, as typified by the range, variance. or coefficient of
variation. Each simulation also honours the spatial continuity of
the raw data as represented in the variogram, and any other
features of the geological model which have been built in.
Kriging, which is theoretically the most optimal estimation
technique, also uses the spatial variability o f the data to derive
the weighting scheme for each unknown point to be informed.
but the output kriged map does not preserve the variogram. In
contrast to simulation, a single kriged estimate provides the
minimum variance set of values. Each individual simulation,
taken in isolation, is more variable than any one kriging estimate,
but the ensemble of simulations (typically between 20 and I 0 0
are generated), treated together, provide more information than
kriging. Simulation preserves more characteristics of the input
data than other estimation techniques; it also has the benefit of
providing the risk dimension to resource evaluation studies that
kriging cannot readily provide.
Although the principles of simulation in other fields have been
known for decades, conditional simulation in the mining and
petroleum fields has been practised for only 20 to 25 years, and it
is only with the advent of fast, affordable computers and memory
that practical simulation has been available to the mining
industry. Good descriptions of simulation are provided in
Goovaerts (1997). by Srivastava (1994). and in Chilks and
Delfiner (1999).
Applications of conditional simulation
The applications of conditional simulation in the mining industry
fall into four broad categories:
Probability and confidence interval analysis
In this field of application, the suite of simulations generated are
used to provide indications of the range of likely outcomes. This
involves ranking each individual simulation in some way -
average grade above a cut-off, maximum tonnage, or maximum
metal -and then tabulating or processing the extreme values. It is
possible to generate a true probability or confidence interval
around a median, mean, or any value using simulations - for
example, the 9.5 per cent grade and tonnage confidence interval
around the cut-off at 1 g/t in a gold deposit, or the range of
tonnage expected to be delivered to a plant from one bench of a
nickel laterite deposit. Using this approach, the extreme cases
can be further processed to yield ‘best and worst’ outcomes,
using such techniques as pit optimisation, underground stope
optimisation, schedule analysis or cashflow forecasting. I t is also
possible using the suite of simulations to derive the probability of
exceeding any particular key value. such as a cut-off grade or
minimum level of contaminants. A case study of this type of
approach is presented in Coombes et al(1998).
Optimisation
Optimisation of simulations takes the entire range of outcomes
and produces a ‘best’ result, which is optimal for a given set of
known criteria. These criteria are often presented as a loss
function, or more generally an economic function combining
profit and loss components (Srivastava, 1987; Glacken, 1996).
The typical application of optimisation of conditional simulation
output is in grade control applications, whereby an optimal
199
 I M GIACKEN. M NOPI'C a n d M TITLEY
I 'dig-line' is generated according to the balance of economic
critcria applied in designating a block to cithcr ore. waste. o r one
o f a number of stockpiles. This approach has been explored by
Shaw and Khosrowshahi ( I 997) and by Schofield ( I99X). and
has been adopted in a number of available proprietary software
systems.
1 Heblock irig/Resnnipling
This application of conditional simulation takes one or several of
ii suite of simulations and treats that simulation as reality: i n
other words. a model of the phenomenon under study. This can
be readily achieved as simulations do not smooth the data as with
kriging. and also by the fact that it is possible to simulate into
very small volumes (essentially nodes or points) without
,
I
encountering conditional bias. The fine-scale simulations ciin be
sampled to represent various grade control or drilling patterns. or
also to represent production over a range of timeframes or
production intervals. Another typical application is the analysis
of a range of mining unit ( S M U ) sizes. which can easily be
generated by reblocking or averaging of a tine-scale sirnulation.
-
Drovidinr that the variable under study can be linearly averaged -
(which is certainly the case for most mining applications). I t is
t h i s applicationof simulationw h i c h was used the
range of bench heights at Wallaby: by simulating at a fiiie-scale,
i t was possible to aggregate the node values over a range of
bench heights and then to investigate the ore loss and/or dilution
relative to the kriged model. This was particularly important
given the strong ore-zone control on mineralisation at Wallaby
and the potential for more or less dilution at various mining
scales.
Instead of reblocking a single simulation. a best and worst case
scenario (actually the 5th and the 95th percentile of the
simulations when ranked by average grade) were considered in
order to assess the extra dimension of the uncertainty due to the
risk in the overall grade.
~
Cniihr-ation of n resource mode[
By comparing the selectivity of a resource model with that o f a
similar kriged model. i t i s possible to assess the effective
selectivity of the kriged model. This assumes that the simulation
is a more accurate representation of reality than the kriged
model. and given the accurate reproduction of statistical and
spatial characteristics. coupled with the optimal change of
support for simulation and lack of conditional bias. this should
be the case. By cornparing the simulation tonnage-grade curve
with the kriging curve o n a similar block size, i t is possible to
calibrate the kriged model (effectively increase or decrease the
selectivity) to more accurately represent the likely mining
conditions. This approach was also adopted i n the Wallaby study.
DETAILS OF STUDY
Selection of test area
One downside of simulation is that i t can be a fairly
time-intensive technique as multiple rcalisations of very small
blocks are required. Validation of the results can also be a
lengthy exercise. I t was therefore decided that the simulation
should be carried out within a represcntative volume of the
Wallaby orebody which was large enough to allow meaningful
analysis of results. but also small enough to be completed in a
reasonable time frame. The test volume was selected to include
representative arcas through the main ore zones in terms o f grade
and thickness. and also to allow sufficient vertical extent for the
effects o f dilution and ore loss to be modelled over a range o f
bench heights. A typical cross-section through the test area is
shown in Figure 6.
200 Coolum. Old. 14 -
FILER
ca~e(Pry
Bockgromd
R c o d a 50
RWds 60
\\\,,,,,\\\\\\,\\,,\,,,,,,,,,,,
Rcode 240
Rcode 250
FIG6 - East-west cross-section of the test area at 808 200 niN showing
the arrangement of grade ore-zones.
Generation of conditional simulations
The variography study established that the degrce of rotation of
anisotropy between the high- and low-grades was small. In other
words. the continuity of the high-grades was not oriented
particularly differently to the low-grades within any or all of the
ore-zones. This information, together with the low dcgrees of
skewness displayed by the data. led to the choice of sequential
Gaussian as the simulation algorithm. This approach was further
supported by the lack of geological evidence for strong
connectivity of high-grades or low-grades; in other words.
neither the high-grades nor the low-grades appear to he aligned
in veins. shoots, or structures to any significant degree.
The use of sequential Gaussian necessitated the generation of
normal scores variograms for the gold grades for both the
conglomerate samples and the intrusive samples within each o f
the five ore-zones represented in the study area. The global data
sets for the entire resource. composited to 2 m, were used for the
variography. Care was taken to ensure that the directions of
maximum continuity coincided both with the known stmctural
directions and with those directions previously modelled in the
traditional variography used for the kriged resource estimate. The
wrioprams are characterised by low to moderate nugget
wriances (25 to 40 per cent of total variability) and overall
ranges u p to 100 in. The llat structures (ore-zones SO and 60)
show southerly strikes on the mineralisation. but the link
structures (ore-zones 240 and 250) have primary direc\ions of
continuity which dip shallowly to the northeast.
Since the style of mineralisation in the intrusive suite is
different 10 the conglomerate. these units were treated
independently within each ore-zone. The grades within the
conglomerate and intrusive suites were simulated separately and
twenty simulations werc produced for each of the five ore-zones
within each suite, with the grades simulated into a fine grid o f
2.5 mN x 2.5 mE x 2.5 mRL.
A block model of the spatial occurrence of the intrusive :ind
conglomerate suites was created from the proportion of intrusive
determined using categorical kriging (indicator kriging of the
presence or absence of a single variable). To this end all
composites within the extended area were coded t o cithcr one or
zero depending on whether they were felsic intrusive or
conglomerate. A variogram model based upon these indicator
17 May 2000 41h International Mining Geology Conference
 MINING BENCH HEIGHT EVALUATION FOR THE WALLABY RESOURCE

codes was modelled and used t o estimate the proportion of
intrusive material for each block using ordinary kriging, with a
steeply orientated sample search.
All of the simulations for each ore type were validated by
comparing the input data histograms with the output simulated
values by ore-zone. Q-Q plots indicated very good correlation
between the input data and the simulated values per ore-zone. In
addition, spot checks on the variography showed good
reproduction of variogram models, which are constrained by the
wide spaced data.
The ordinary kriged proportion model was then used to weight
the relative grades of conglomerate and intrusive when the
simulations were merged, using the following formula:
Simulated grude in block = propmion of intrusive x simulated
inlrusive grade + ( I -proportion of intrusive) x simulnied
conglomerate grade
The densities are similar between the rock types (three per cent
difference) and, given the variability generated by the
simulations, tonnage weighting of the grades was not considered
to be necessary.
Each of the 20 simulations was merged in this way, and the
average of all simulations after merging was also generated. The
merged density was allocated using the proportion of intrusive in
a block and the density for pure intrusive and for pure
conglomerate.
The simulation models were ranked according to the grade at
zero cut-off. and the second lowest and second highest
simulation models (effectively the 5th and the 95th percentile
models) were selected to represent worst and best case scenarios
respectively. The middle. or median, model was selected as a
middle case scenario. Note that the ranking is based on the
average grade at zero cut-off over the entire test area. and not for
any particular ore-zone, since ranking of individual ore-zones
could cause unrealistically conservative worst case and overly
optimistic upper case models, particularly when benches span
boundaries between ore-zones.
As an additional validation, the mean grades and coefficient of
variation (COV) per ore-zone for the input data and the median
simulation, together with the means from the kriged resource
model. are compared in Table I . The median simulation data
clearly honours the input data, while some of the kriged model
results display more significant differences. Three 25 m spaced
east-west sections through the test volume for the overall median
sihiulation are shown in Figure 7. The simulation has been
reblocked to 10 mE x IO mN x 5 mRL.

Fl(i 7 - Diagram of three 25 m spaced east-west cross-sections through the median simulation. reblocked to 10 m N x 10 m E x 5 mKL.

1----
. COY Mean cov .I
I
!can I
I 2.609 0.25
..
- '. .-I
I Ore-zon? SO 2.1.1. . . 1 2.607 2.10 2.514 ~- .
1I Qre-zone
- 60 1.66L . . 1 . . 1.325 I .66 1.316 ...-I .. I .53
~-
, I
Orc-z?ne240 ~

I
- ....... 2.69
-. ... I 1.284 2.69 .- 1.269 ... ..I
2.83 I
Orc-zone 250 -1 0.45 2.039 . . . . . 0.45 .- 2.039 -.
- .. _
I 0.4P .I

4th lntemational Mining Geology Conference Coolum. Qld, 14 17 May 2000

~ 20 1
 I M GLACKEN. M NOP& and M TITLEY

CALIBRATING THE RESOURCE MODEL
One of the desirable outcomes from thc simulation study was the
ability to investigate the selectivity of the kriged resource
estimate. Because the simulations were generated at a fine-scale,
and honoured both the statistical and spatial variability of the
input composite data, when reblocked to the dimensions of the
kriged estimate (ie I O mN x lOmE x 5 mRL) they provide a
range of outcomes, each of which is free of conditional bias, and
which can be used to look at the smoothness of the kriging.
The results for the overall study area. including all ore-zones.
are shown in Figure 8. This shows that, overall, the kriged model
sits within the range of the I O mN x I O mE x 5 mRL reblocked
simulations.
I However, when individual ore-zones within the simulations are
compared with similar blocks in the kriged model, the results are
different. Figure 9 shows the results for ore-zone SO, and Figure
I O shows the results for ore-zone 250. The ore-zone 50 results
show that the grades for the reblocked simulation
(10 mN x I O mE x 5 mRL) and the kriged model at 0 g/t cut-off
grade are very similar, at 2.06 dt and 2.03 g/t, respectively.
However, the slopes and positions of the curves indicate that the
kriged model for ore-zone SO is oversmoothed, and probably
represents the selectivity to be expected from blocks of a! least
20 m x 20 m x IS m. An explanation for the lower grade of the
simulations reblocked to larger block sizes compared to the
kriged model is that the reblocking includes the effect of
boundary dilution with increasing bench height, whereas the
kriged model does not.
The comparison of kriging results and various reblocked
(mcdian) simulations for ore-zone 250 show a different result
(Figure IO). The grades for the reblocked simulation
( I O mN x I O mE x 5 mKL) and the kriged model at 0 g/t COG
are similar, at 0.45 g/t and 0.48 g/t, respectively. As expected, an
increase in simulation block size results in a general increase in
tonnes and a decrease in grade. The decrease in grade is most
dramatic for higher cut-offs in ore-zone 250. The implication is
that it may be difficult to achieve high-grades if large selective
mining units are used. A large increase in tonnes with increasing
block size is evident in ore-zone 250 for low cut-offs. This is to
be expected from the volume-variance effect. and contrasts with
a larger change in grade for increasing block size at the higher
cut-offs. The slope and nature of the curves suggest that the
kriged model for ore-zone 250 is insufficiently smoothed and
represents the selectivity to be expected from blocks of less than
5 m x 5 m x 5 m. This is not generally expected from a kriged
model, and an explanation may be found in the search and
sample selection applied during the kriging.
Implications for kriging
The comparison of the reblocked simulations and the krigcd
model indicates that the kriged model performs reasonably well
overall, with the degree of smoothing commensurate with blocks
intheorderofSmN x S m E x SmRL to I O mN x I O mE x
5 mKL. Based on this overall comparison, tonnage and grade
factors were prepared relative to the I O mN x I O mE x 5 mKL
reblocked simulation so as to report the grades and tonnages
expected for a range of block size and bench height scenarios at a
range of cut-off grades.
However, it is clear from the comparison of grade-tonnage
curves for ore-zones SO and 250 that there are differing degrees
of smoothing per ore-zone in the kriged model, with the
comparison for ore-zone SO suggesting a moderate degree of
smoothing and ore-zone 250, in contrast, very little smoothing.
These differences are important since they highlight where the
kriged model may be expected to under- or over-perform relative
to the actual selectivity of the modelled block size. While it
would be possible to ‘factor’ the model to reflect the differing
degrees of smoothing, a better approach would be that the
kriging parameters first be examined to identify whether the
necessary modifications can be effected by changing certain
kriging parameters.

3 50 ~

I
I

-
L
0)
3 00

.&-
.&

?
L
250
¶

Q,

0
0
n 200
0
W

150

100
1000000 2000000 3000000 4000000 5000000 6000000
Tonnes
I
-- ._ ._._
.
I
Kriged model -A- 5th% simulation
- - --
+50th%
__
simrlation -0-
_
95th0h simulation
~- . .-. __ 1

FIG8 - Tonnage-grade curves for selected simulations reblocked to I O mN x I O mE x 5 mKL together with kriged model (in bold);
I gA cut-off has larger symbol.

202 Coolurn. Old. 14 - 17 May 2000 4th International Mining Geology Conference
 MINING BENCH HEIGHT EVALUATION FOR THE WALLABY RESOURCE

3.50

-
Y
01
3.00

z
Y

0
2.50

QI
a
0
P
2.00
QI
0

1S O

1.oo
1000000 2 000000 3000000 4 000000 5000000 6000000
Tonnes
. . . . . . . . . . . . . ~ ..

Kriged model -A- 5th% sirmlation --t 50th% sirmlation -0- %th% sirmlation
. . . _..__ .. ~ .-
... . . . . . . . . ..... .

FIG9 - Ore-zone 50 kriged model (in bold) and median simulations at various block sizes.

25

2 ... - .. ..

b
$15 . .-I
I
3
9 i
m
a,
Zu ’ ..

05

0
0 1000000 2000000 3000000 4 000000
Tonnes
_ _ - .___ -_ _ . - ._ . . . . . .
+-Knged model 0 50th% sim 10~10x5-A- 15xl5x15sim U 5 x 5 x 5 s i m X 2Ox20x15sim
_ _ _ _- - . _ _.
L_- ..- _. .. -.

Flc; 10 - Orc-zone 250 kriged model (in bold) and median simulations at vanous block sizes.

4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000 203
I M GLACKEN. M NOPPE and M TITLEY

BENCH HEIGHT STUDY

Tonnage and grade factors lml. . . .

The reblocked simulations were used to investigate the effects of

using different bench heights for the proposed Wallaby pit. The
results from the various reblocking exercises were presented
relative to the I O mN x I O mE x S mRL reblocked simulation
which has been compared to the kriged results above. The other I

simulations were presented as tonnage and grade factors for a -*

range of cut-off grades. The results for ore-zones SO and 2.50 are
--
presented in Figures I I to 14.

..... -.. .- ......... - .. -

120 , I
Flci 14 - Grade factors for ore-zone 250 relative to IO mN x IO mE x
I10 -.
5 mRL blocks.

The results show generally that block sizes larger than the base
case generate more tonnage for any given cut-off grade. but at
lower grades than the base case. For ore-zone SO the tonnage
increases with increasing cut-off grade up to a point, beyond
which the tonnage relative to the base case remains constant. The
3 80
05 OG 07 38 09 10 1 1 12 13 14 15 1G
tonnage curves for ore-zone 250 show that the larger blocks
C"1QrfOI.d. gll
show a drop-off in tonnage as the cut-off grade increases.
suggesting that the homogenisation of the higher grade and lower
grade portions of the mixed ore-zone 250 occurs more quickly at
larger bench heights. The grade factors for ore-zone 250 are also
FIG I I - Tonnage factors for ore-zone SO relative to I O mN x 10 mE x fairly insensitive to changes in cut-off grade, reflecting the
5 mRL blocks. dilution shown in the tonnage factor chart. The results show that
the choice of bench height may be more consequential for
ore-zone 2.50 than for ore-zone 50, and that the cut-off grade in
this ore-zone has relatively little effect on the tonnage and grade
factors relative to the base case. In contrast. the choice of bench
height for ore-zone SO appears to be less important than the
cut-off grade.
The tonnage and grade factor curves were each modelled by a
polynomial regression method so that the tonnage and grade
relative to the base case could be determined for any intermediate
cut-off. This enabled the factors to be built directly into the pit
optimisation.

Dilution and ore loss factors

The results of the reblocking were also presented as percentage
dilution and ore loss. The dilution was defined at a given cut-off
as the difference between the tonnage from larger blocks and the
base case (10 mN x I O mE x S mKL) blocks. relative to the base
case blocks. This is effectively the relative change in tonnage
above a given cut-off. Ore loss was defined as the change in
grade between the larger blocks and the base case blocks relative
to those base case blocks. This ore loss is directly proportional t o
the percentage change in revenue per tonne with changing block
size.
The dilution and ore loss factors were tabulated for ;I range of
cut-off grades, and the issue of risk was introduced by examining
the differences between the low, median, and high-grade
scenarios. Overall, dilution rates vary between ten and 25 per
cent relative to the base case block size, with larger block sizes
incurring more dilution. For tightly constrained ore-zones such
as SO, the change in dilution and ore loss is relatively small
moving from smaller blocks to larger blocks. However. for
ore-zone 250. larger block sizes incur proportionally more
dilution. The spread of outcomes between the high and low
simulations is much greater for ore-zone 250 than for ore-zone
SO, reflecting the much greater uncertainty in the definition of the
Rc; 13 - Tonnage factors for ore-zone 2.50 relative to IO m N x I O m E x 250 ore-zone. The dilution and ore loss results show that
5 rnKL blocks. recovery from ore-zone 250 would be maximised with smaller
benches.

204 Coolum, Qld. 14 - 17 May 2000 4th International Mining Geology Conference
 MINING BENCH HEIGHT EVALUATION FOR THE WALLABY RESOURCE
OUTCOMES OF THE STUDY
The use of simulation at Wallaby has provided a number of
henelits for the mine planning and feasibility study activities.
Firstly the resource estimate has been validated, and areas of
potential under- and oversmoothing highlighted. Secondly, the
analysis o f different bench heights as provided by the reblocked
simulations has led to the generation of a range of tonnage and
grade correction factors which can be used in reserve
optimisation scenarios and over the range of expected cut-off
grades. The calculation of dilution and ore loss percentages for
various ore-zones, cut-off grades, and simulation scenarios has
shown the sensitivity of the ore-zones to bench heights and
cut-off grade combinations. Upon the input of mining costs
based on the predicted equipment and blasting scenarios for the
various bench heights it will be possible to generate actual
forecast revenue figures. Finally, the analysis of high, low, and
median scenario simulations has highlighted those areas which
are very robust (low range of outcomes) and those areas which
are high risk (high range of outcomes). The optimisation of
end-member simulations, ranked on those critical areas (such as
the grade and tonnage of ore-zone 250) will reveal the robustness
of any pit design.
A further application of conditional simulation, not yet used at
Wallaby, would be 10 sample a chosen simulation or simulations
on various grade control grids. This could be used as a first pass
analysis of the implications and costs of different grade control
patterns and could be used to optimise drilling costs.
Overall, the application of conditional simulation has lent an
extra dimension to the feasibility study through the quantification
of risk, the validation and calibration of the resource, and the
important information for the economic and mining evaluation of
suitable bench heights.
4th International Mining Geology Conference Coolurn. Old. 14 - 17 May 2M)o
ACKNOWLEDGEMENTS
The management of Placer (Granny Smith) and Delta Gold have
given permission to publish these findings. Tim Keleman and
Mathew Matheson at Granny Smith assisted with geological and
grade control aspects of the study, and Elizabeth Haren
completed the variography, geological modelling and data
preparation. Jacqui Coombes, Steve Potter, and Craig
MacDonald of Snowden helped generate and post-process the
simulations. Vivienne Snowden acted as project reviewer.
REFERENCES
ChilCs, J-P and Delfiner. P, 1999. Geosrufisfii:c.. Miidelling Spufiul
Uncerfuinfy,696 p (John Wiley and Sons).
Coombes. J, Thomas, G S, Gifford, M and Jepsen. L, 1998. Assessing the
risk of incorrect prediction - a nickel/cobalt c u e study, in
Protreedingr Mine fo Mill 1998. pp 63-68 (The Australasian Institute
of Mining and Metallurgy: Melbourne).
Glacken. 1 M, 1996. Change of support and use of economic parameters
in block selection. in GeosfufisficsWollongong '96 (Fds: E Y Haafi
and N A Scholield) 1997 pp 81 1-821 (Kluwer: The Netherlands).
Goovaerts, P, 1997. Geosfutisficsfor Nururul Resourres, 483 p (Oxford
University Press: New York).
Nielsen, K I and Cume, D A, 1999. The discovery of the Just In
CaselWallaby gold deposit. Laverton District. Western Australia, in
Proceedings New Generufion Gold Mines '99 Conference.
November 1999, pp 1-13.
Shaw, W J and Khosrowshahi, S. 1997. Grade control sampling and ore
blocking: Optimisation bawd on conditional simulation, in
Proceedings Third Inreniufionul Mining Geology Conference. pp
131-134 (The Australasian Institute of Mining and Metallurgy:
Melbourne).
Schofield, N A, 1998. The myth of mine reconciliation. in Proceedings
Mine lo Mill 1998, pp 87-92 (The Australasian Institute of Mining
and Metallurgy: Melbourne).
Srivastava, R M. 1987. Minimum variance or maximum profitability?
CIM Bulletin. 80(901):63-68.
Srivastava, R M, 1994. The visualization of spatial uncertainty. in
Sfochufic Modeling and Geosfufisfics.Principles, Mefhods, und
C u e Studies, &ilurne 3 of AAPG Conipu fer Applicafions in Geology,
( W s : J M Yarus and K L Chambers) pp 339.345.
205
206 Coolurn. Qld. 14 - 17 May 2000 4th International Mining Geology Conference
Ore Definition at the Henty Gold Mine Tasmania
N Schofield’
ABSTRACT
The Henty Gold Mine is a good example of a situation where conditional
simulation and optimisation techniques may have useful impact on
modelling of mineralisation distribution and ore definition. Much of the
gold mineralisation at Henty is concentrated within an alteration zone
which is both physically discontinuous and forms only a small fraction of
the overall mineralised volume. The alteration units are mappable from
diamond drill core and underground workings.
Conditional simulation and optimisation techniques for ore definition
have found considerable success in the open pit gold mining
environment. For many reasons including computational efficiency, lack
of consistent geological information, and lack of familiarity with ideas
and methods among mine geologists. implementations of these methods
in open pit mining have been comparatively simplistic. Modelling is
commonly reduced to treating the sample data as a single geologic
population.
This paper discusses the application of the MP method (a particular
implementation of conditional simulation and optimisation) to modelling
the distribution of potential ore blocks in the Henty gold mineralisation.
The approach allows the mine geologist to model both the spatial
geometry of the alteration types and the gold grades associated with each
alteration type in a single process. Options allow the geologist to include
or exclude underground geological mapping and face sampling
depending mainly on the abundance of drill hole sampling and the quality
of the face sampling. An optimisation algorithm based on maximisation
o f profit from mining is used to assist in ore definition.
INTRODUCTION
The Henty Gold mine is located approximately 30 km north of
Queenstown on the west coast of Tasmania (De Mark and
Callaghan, 1997). The mine encompasses four major zones of
gold mineralisation trending along strike and down plunge within
package of highly altered volcanic rocks. The shallowest zone is
termed the Sill Zone, followed by the Intermediate Zone, Zone
96 and Mt Julia. Zone 96 has been the focus of initial production,
the Intermediate and Mt Julia Zones being explored extensively
over the past three years.
Henty lies within the Cambrian Mount Read Volcanic Belt, a
rich mineral zone that hosts the Hellyer, Que River, Rosebery,
Hercules and Mt Lyell mineral deposits. Henty is contemporary
with the high grade Cambrian Pb-Zn-Cu-Au-Ag mineralisation
in these deposits. However, the high-grade gold deposits at Henty
arc a new style of mineralisation in the Mt Read Volcanics and
are the only known economic deposits hosted in the Tyndall
Group rocks.
The Henty mine lease covers rocks of the Central Volcanic
Sequences, the Henty Fault Sequences and the Tyndall Group
rocks of the Mount Read Volcanics and the overlying Owen
Conglomerate. Near the mine, the Henty Fault splays into the
North ‘and South Henty Faults, dividing the geology into
segments to the east and west of the faults, and a package
between the splays. Gold mineralisation is hosted in the Tyndall
Group rocks to the east of the Henty Fault.
The Henty orebodies are hosted east of the Henty Fault on the
steeply west dipping overturned western limb of a shallowly
south plunging asymmetric syncline trending into the Henty
Fault. The orebodies plunge at around 45 degrees to the south
between the Sill Zone and Zone 96, and shallow at depth toward
Mt Julia. Zone 96 is up to 300 metres long, 30 metres wide and
I. MAusIMM, Hellman and Schofield Pty Ltd. PO Box 599, Beecroft
NSW 21 19.
4th International Mining Geology Conference Coolurn. Qld. 14 - 17 May 2000
200 metres high. The lithologies and regional foliation strike at
340 degrees with a steep westerly dip, and swing parallel to the
Henty Fault as they approach the structure.
The structure of the Henty Gold Mine is dominated by the
steeply west dipping Henty Fault Zone. The 20 metre wide South
Henty Fault forms the upper boundary to mineralisation. and
truncates it to the south. Adjacent to the South Henty Fault,
foliation intensifies and lithologies become brecciated and
mylonitised. The orebodies are disrupted by numerous south
trending, steeply west dipping brittle-ductile faults with
displacements of up to a few metres.
Nearly all of the stratigraphic units of the Tyndall Group
present at the Henty Gold Mine have undergone hydrothermal
alteration. The most intense quartz-sericite-sulphide alteration
and gold mineralisation has affected the Lynchfold Member of
the Comstock Formation and is referred to as the ‘A-Zone’ type
alteration. ‘A Zone’ alteration types include MA, MZ, MV, MA,
MP and CB. The main mineralised zone comprises MQ, MV and
MZ and these are the alteration types followed in the
underground drives in Zone 96. Of these, MV alteration
comprising a yellow-green fine grained and highly foliated
quartz-sericite-pyrite rock and MQ comprising a grey, cream or
pink massive to recrystallised brecciated quartz rock carry most
of the gold mineralisation with MQ carrying around 80 per cent.
Figure 1 (after De Mark and Callaghan. 1997) shows a
schematic cross-section through the Henty deposit and
surrounding geology. Figure 2 shows the spatial distribution of
gold grades in a number of drill holes and underground samples
at the 2142RL. The figure illustrates the very narrow
intersections in drill holes and the underground sample grades
provide a reasonable illustration of the grade continuity between
drill hole intersections. The sample symbols show the alterations
types mapped at each sample location. Figure 3 shows the
histogram of sample grades in the MQ and MV alteration types
in Zone 96. Typical of gold, the histogram is strongly positively
skewed with a coefficient of variation in excess of six and a
maximum grade exceeding 7000 grams per tonne.
ORE DEFINITION IN UNDERGROUND MINES
The problem of ore definition in underground mines, particularly
gold mines, can be significantly more difficult when compared to
the problem of ore definition in open pit mines. Ultimately
however, the solutions to these problems are based on the same
spatial modelling methods and economic concepts.
There are several reasons for the greater difficulty. Higher
underground mining costs generally increase the cut-off grade at
which ore is defined. Limited access to the mineralisation to be
mined and the high-cost of underground development are not
always compatible with highly selective mining practices. Ore
definition drilling in underground mines, most commonly
diamond drilling in fans, is usually carried out from sites located
some distance from the mineralisation. Consequently, unit
sampling costs are higher and usually smaller numbers of
samples are available for ore definition compared to open pit ore
definition.
In contrast to the open pit environment however, geological
mapping can often play a more important role in ore definition in
the underground mine. Diamond drill core provides a better basis
for lithological and structural mapping at the larger scale while
mapping and sampling of the backs and faces of drives provide
more detailed information strongly focused on the main areas of
207
N SCHOFIELD

West ul
81
“-1
I:
81
E

/ qo o4 c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
o c
0 0
0
O f
0
0
c
0
,

I I
Flci I - Schematic cross-section at S4 900 mN through the Henty deposit and host geology showing the Henty fault and the distribution of the main
alteration types (after De Mark and Callaghan. 1997).

208 Coolurn, Old. 14 - 17 May 2000 4th International Mining Geology Conference
 ORE DEFINITION AT THE HENTY GOLD MINE TASMANIA

0 MZ
0 MV
MQ
AU >= 0 5 g / t plotted

l868OE 18700E 187201 18740E

EASTING
R(i 2 - Plan showing the distribution of alteration types and gold grades in drill hole and underground sampling, 2142RL.

4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000 209
I
N SCHOFIELD
0.5
Histogram o f gold for MQ and MV mineralisation
0.4
m
Z. 0.3
:
c coefvrn: 6.802
E
.-0
HE 0.2
P
0.1
0
0 20 40 60 80
grade class -gold
FIG3 - Histogram of gold grades in drill hole and underground samples in the MV and MQ alteration types
ore bearing mineralisation. The quality of assay information
gcncrated from face and back sampling is usually inferior to that
generated from diamond drill core.
The greater uncertainty in locating the ore that is introduced by
wider drill hole spacing, inherently clustered underground
sampling and higher cut-off grades, can be mitigated to some
extent by better quality sampling from core and the potential for
better geological modelling, when compared to the open pit
environment.
At the Henty Gold mine, ore is defined with the help of
conditional simulation models of the alteration geometry and the
gold grades within each alteration type. The spatial distribution
of the three main gold bearing alteration types, MQ, MV and MZ
are generated using the method of Probability Field simulation
(Froidevaux, 1992). These models use both the geological
logging of alteration types from the drill core as well as the
underground mapping of the drives. The distribution of gold
grades within each alteration type is simulated using the
Sequential Gaussian Simulation method (Gomez-Hernandez and
Journel, 1992). Inclusion of the underground mapping and
assaying information is optional.
An optimisation algorithm similar to that described by
Schofield and Rollcy, I997 (the M P Method) and Glacken, I996
is applied to a set of multiple simulations to provide the mine
geologists with an optimal definition of ore prior to final
geological interpretation and stope design.
WHY CONDITIONAL SIMULATION AND
OPTIMISATION?
Conditional simulation methods for building models of grade in
mineral deposits are designed to generate models that reasonably
reproduce certain average properties of the sample grades,
I specifically the histogram of the grades and the spatial continuity
I of the grades.
210 Coolum. Old. 14
Univariate Statistics
variable: gold
weighted by: --
mean: 21.772
varnc: 21929.186
min: 0.000
91: 0.617
median: 2.660
q3: 12.050
max: 7223.000
iqr: 11.433
I00 120
no. of data: 6241 I18981
(data is sub-setted)
Reproduction of the histogram is important because it provides
some guarantee that a model will be globally and conditionally
unbiased.
Reproduction of the spatial continuity is also important
because it provides some guarantee that the way in which high
and low grades arc grouped together in the sample data will be
reproduced in the model. This property is integral to the
definition of ore.
Similar properties apply to the generation of conditional
simulations which represent the distribution of geological
variables such as the distribution of MV, MQ and M Z in the
Hcnty deposit. Indicator simulations and Pfield simulations
generate MV, MQ and M Z at locations in the model in
proportions similar to those present in the data. The continuity of
each alteration type, represented by the indicator variograms is
also represented in the indicator simulation.
Presently, conditional simulation methods for generating
models of distribution of alteration types and grades are the only
methods which can consistently reproduce these fundamental
properties of the sample data.
The advantage of the additional optimisation procedure in
assisting the definition of ore is that it introduces the local
variable costs and revenues into the ore definition in a better way
than simply applying a previously defined cut-off grade to the
estimate of grade in a block in a deposit.
MODELLING THE SPATIAL GEOMETRY OF THE
ALTERATION TYPES
The spatial distribution of alteration types such as MQ, MV and
MZ may be simulated at an appropriate scale using a number of
conditional simulation methods such as Sequential Indicator
Simulation (SIS) and Simulated Annealing (Deutsch and Journel,
1992). Both of these methods are presently too slow for practical
- 17 May 2000 4th lntemalional Mining Geology Conference

implementation in a producing mine with current computing
capabilities. Another approach which provides reasonable
indicator simulations in a fraction of the time taken for both of
these methods is Probability Field Simulation (Pfield). This is the
approach currcntly taken at Hcnty to generate modcls of the
distribution of alteration types in the mine sequence.
Figure 4 shows simulations of the distribution of alterations
types in small blocks within Zone 96 of the Henty deposit. The
traces of drill holes in close proximity to the level arc also
plotted showing the sample alteration type. The figure also shows
directional indicator variograms describing the continuity of the
M Z to MV, M Q transition and the MZ, M V to M Q transition. As
might be expected, the latter transition is significantly less
continuous than the former.
MODELLING THE GRADE DISTRIBUTIONS IN
EACH ALTERATION TYPE
Conditional simulation of the gold grades in each alteration type
allows the reproduction of the histogram and variogram of the
gold grades in each alteration. In the underground fan drilling at
Henty, the proportion of samples that are M Q averages around
eight per cent and the proportion of samples that arc MV
averages around IS per cent. Consequently, some assumptions
regarding the spatial continuity of gold grades in the M Q must be
made because the amount of information about grade in M Q and
discontinuous nature of the M Q geometry does not permit any
reasonable calculation of the variogram of gold grade within the
MQ.
1 sdeo 7o-too 1e+20
Eaeting
Fici 4 - Indicator variograms of the alteration transitions and a level plan of a conditional simulation of alterations types in Zone 96 (easting scale is
4th International Mining Geology Conference
ORE DEFINITION AT THE HENTY GOLD MINE TASMANIA
The M P modelling at Henty assumes that the spatial continuity
sf gold grade in MZ, M V and M Q is similar and that the
jifferences between the gold &'de distributions in each
ilteration type are entirely reflected in the histogram of sample
gold grades for each typc. Each simulation model reasonably
-eproduces the histogram of gold grades for each alteration type
IS measured from the diamond drill hole sample grades in that
.Ype.
Figure 5 shows a level plan of a conditional simulation of gold
grades with traces of the underground drill holes overlain and the
locations of underground samples shown. Directional variograms
sf the normal scores of gold grade used to generate the
Zonditional simulations are also shown in the figure alongside the
level plan.
The grade control process allows for up to 100 pairs of
:onditional simulations of the gold grade distribution and the
ilteration type distribution to be generated in the first stage of the
modelling process. Each pair of simulations is designed to
reasonably reproduce the average univariate and spatial
properties of the input sample data and honour the known sample
grades and geological classification.
ORE DEFINITION USING CONDITIONAL
SIMULATIONS OF GRADE
In the traditional practice of resource estimation and grade
:ontrol, the economic cut-off grade is applied to an estimate of
.he grade of a mineable volume to decide if the volume should be
iccepted as ore or rejected as waste. In this approach, the single
. . . ... .- ,
. ...
"'1 /
l d 4
exaggerated).
Coolum. Qld. 14 - 17 May 2000 21 1
 N SCHOFIELD
Fici S - Variogram of gold grade and a level plan showing ;1 conditional simulation of gold grade.
model of block grades produced by a particular estimation
method (such as kriging or polygonal estimation) is assumed to
provide the best representation of the block grade for the purpose
of deciding ore and waste.
With optimisation approaches like MP, the set of conditional
simulations is used to build an estimator of ore and waste that is
implicitly customised to each individual deposit. There is no
prior assumption that an estimator such as the polygonal
estimator of grade is the best for grade modelling in a particular
deposit. The optimisation method uses the information contained
in all the simulations to decide the economic advantage of
accepting a block of mineralisation as ore or rejecting it. In doing
so, the process takes into account the probability that the block
will have a grade exceeding the cut-off grade. This is part of the
information provided by the conditional simulations.
Figure 6 shows the rcsult of applying the optimisation process
to the set of conditional simulations to help define ore on two
levels in Zone 96.
RECENT RECONCILIATION INFORMATION
The MP grade control system was introduced at Henty in
Ikccmber l Y Y 8 and became operational in early-1999. ClBC
World Markets magazine (July 1999) reported that ‘The
operating performance at Henty showed significant improvement
over the course of the past year, with production ranging from
13239 oz at $434 per oz in the June 1998 quarter to 26199 oz at
$217 per oz in the March 1995, quarter. The improvement was
largely due to the modified mining method being employed
which has allowed mining of the higher grade central portions in
212 Coolum. Old. 14
Zone 96 whilst minimising dilution and lead to an increased
mining rate’.
In thc current year to the end of February, some 84 900 tonnes
of reserve have been mined at a predicted grade of 19.6 grams
per tonne for 53 500 oz of contained gold. Allowing for
overbrcak (dilution), some 100 300 tonnes were actually mined
at a grade of 17.1 grams per tonne for 55 130 oz of contained
gold. Ounces produced are within three percent of ounces
predicted.
CONCLUSIONS
The Henty Gold mine presents some difficult challenges to ore
definition which are related to the high-cost of mining and the
concentration of most of the gold within a very small proportion
of the mineralised rocks. The application of the conditional
simulation and optimisation method known as MP at Henty
provides tools to allow the mine geologist the ability to model
both the distribution of the main mineralised alteration types and
the gold grade associated with those types. The mine geologist
can choose to include or exclude underground mine sampling
and mapping in the modelling. The method is comparatively fast
and allows re-modelling of large areas of the deposit within
several hours.
The approach has potential for application to other
underground gold mines where the alteration characteristics
associated with mineralisation can be readily mapped and where
underground mine sampling and mapping can play an important
part in ore definition.
- 17 May 2000 41h International Mining Geology Conference
 ORE DEFINITION AT THE HENTY GOLD MINE TASMANIA

S e c t i o n Plot o f gold Plan Plot of gold

Rin: 2234.7 - 2241.9

tedso

FIG6 - Plan and section plots showing ore defined by simulation and optimisation

ACKNOWLEDGEMENTS Deuvjch, C V and Journel, A G. 1992. GSLJB - Geosrurisricul Sofmure

T h e author acknowledge the contributions of colleagues at
Hellman and Schofield and the Hcnty Gold Mine in preparing
and reviewing this paper. He also thanks the conference
reviewers for their thoughtful comments in improving the
presentation of this paper.
REFERENCES
De Mark. P and Callaghan, T. 1997. Geology and Mineralisation of the
Henty Gold Mine. Tasmania, in Proceedings of /lie Third
lnlrrntrrionul Mininx Geoloxy ConJerence, pp 25-29 (The
Australasian Institute o f Mining and Metallurgy: Melbourne).
Goldfields Limited. 1999. ClBC World Murkers Ausfruliun Gold R ( J o ~ .
Librury und U.wr.y Guide, 340 p (Oxford University Press: New
York).
Froidevaux R 1992. Probability Field Simulation. in Geos/ufis/ic~s Troia
'92, Volume I (FA: A Soares) pp 73-84 (Kluwer Academic
Publishers: London).
Glacken, I M, 1996. Change of Support and Use of Economic Parameters
for Block Selection. in Geosrcrrirrics Wollongong '96, pp 8 I 1-82 I .
Gomez-Hernandez. J and Journel. A G. 1992. Joint Sequential
Simulation of Multigaussian Fields. in Geosfafisrrc.\. Troiu '92.
Volume I (Ed: A Soares) pp 85-94. (Kluwer Academic Publishers:
London).
Schofield, N and Kolley. P. 1997. Optimisation of Ore Selection in
Mining: Method and Case Studies, in Proc.eedings Third
Infernnrionul Mining Geology ConJerence, pp 93-97 (The
Australasian Institute of Mining and Metallurgy: Melbourne).

4th International Mining Geology Conference Coolum. Old. 14 17 May 2000

~ 213
214 Coolurn, Old. 14 17 May 2000
~ 4th International Mining Geology Conference
Computer-based Resource Estimation in Accordance with the
1999 JORC Code
J H Duke’ and P J Hanna2
ABSTRACT
Following the Busang fiasco. more detailed guidelines were appended to
the latest revision of the JORC Code released in September 1999 (JORC.
1999). Although the definitions and terminology essentially remained
unchanged. the additional information in the guidelines has highlighted a
number of issues for consideration by geologists undertaking
computer-based resource estimations.
The three main issues are:
Data Integrity - details such as drilling and logging techniques.
sampling procedures. assay tests. site visits, data recording and
aggregation methods need to be considered.
Geological Interpretation - is the Competent Person applying the
appropriate software interpretation to the deposit in accordance with
the regional setting. Are the correct computer-based tools being
applied and are they producing the desired result (without
compromise) to the satisfaction of the Competent Person?
Modelling Technique - the importance of the relevant experience of
the Comprtent Person not only in regard to the geology, but also
with respect to the modelling algorithms and resource calculation
methods of the computer software system involved.
At the end of the day. it is essential that the Competent Person
undertake a reality check on the resource estimation itself. They should
also check that the borehole spacing is in accordance with the level of
continuity for each critical parameter (such structure, grade,
impurities. etc) for which the resources are categoriscd.
INTRODUCTION
It has long been accepted practice amongst mine geologists to
provide ‘conservative’ resource estimates. It is easier, the
geologist argues, to accept that some ore was missed in the
estimate than to admit to mine management and the mining
engineers that the estimate ‘over stated’ the resource. The mine
geologist does not usually have to wait very long before mining
reveals what is actually in the ground. Additionally, the
accumulated knowledge of the existing mineralisation provides a
solid basis for the predictive resource model on which the
estimate is made.
On an exploration project however, the exploration geologist is
often prone to provide a more ‘optimistic’ resource estimate.
There is usually a long lead-time to development and hence to
any rcconciliation of the resource to mine production.
Consequently the knowledge basc for the resource model is very
limited and grows only by further exploration.
Whether the resource estimate is conservative or optimistic,
either way i t is not necessarily the ‘best’ estimate based on the
available data and geological understanding. According to the
JORC Code, what investors and mine management need are
resource estimates which are as accurate as possible so they can
realistically asscss the geological ‘risk’ of the project.
For many years now the resource geologist, whether attached
to an existing mine or assigned to an exploration project, will
carry out resource estimation using specialised ‘resource
modelling’ software. This implies that the resource geologist not
I. MAuslMM, MMICA. Principal Geologist - Metals. ECS
International Pty Ltd, PO Box 160. Bowral NSW 2.576.
2. FAuslMM. Senior Geologist - Coal. ECS International Ply Ltd, PO
Box 160. Bowral NSW 2576.
4th International Mining Geology Conference Coolum. Qld, 14 17 May 2000
~ 215
only works to understand the deposit but can use the appropriate
software methods to model it accurately. Applying the
appropriate methods involves both having access to those
methods in the available software and being able to use them to
generate a realistic and accurate model.
DATA INTEGRITY
The 1999 JORC Code provides us with guidelines (refer to Table
1 of the JORC Code) which are recognised as industry standard
procedures for resource estimators. The first nine points are
concerned with the integrity of the geological data, such as,
logging, sampling, assaying and data location.
There are two important criteria to consider whilst developing
a geological database for resource estimation, Materiality, and
Transparency. It is essential that the geologist remains focussed
on these criteria when designing and compiling a gcological
database.
Geologists should recognise the fact that the database will
evolve with a project as it develops from exploration to
development through to the mining stage. At all stages it is
important that the investors, project managers and the mine
planners are aware of the impact of geology on the viability of
mining the resource.
For these reasons it is essential that geologists know why data
was collected, which data is relevant to the project and the
reliability of the information.
When compiling the database, geologists should ensure
adequate data validation has been conducted. It is the authors’
opinion that geologist should not only sign-off on a Resource
Statement, but that they should be prepared to sign-off on the
database itself and that this should become a standard practice
for the industry.
Today’s geologists need to fully understand how data can be
manipulated with the software system they are using to store the
data. A database should be all encompassing. integrating all
types of information including lithology, analytical data,
downhole geophysical logs, geotechnical logs, hydrogeological
data, gas data, etc. Every piece of geological information that has
an impact on the project should be retrievable from the databasc
to be placed on appropriate plans or cross-sections, even if it is
not related to a borehole (Figure I).
Comments such as micro-faulting, H2S odour emitted from
borehole, and lost water circulation in borehole (possible
breccidfractured zone), should be stored in an appropriate form
in the database.
It is also important that the database agrees entirely with the
final geological model. Some systems use an extract summary
file of the database to generate a model. Often, a geologist may
edit the extract file to update the model, but neglect to update the
database with the same edits. This is regarded as poor practice, as
it often complicates an independent audit of the resources. The
best method to check the integrity of the database is to plot the
data onto sections and plans of the final model (Figure 2).
The database should well documented. as it will inevitably be
scrutinised by external auditors. The documentation should note,
among other things, the extent of validation, assumptions, any
shortcomings of the data, verification of laboratory results and
listings of the data, such as the borehole names, stratigraphic
sequence, etc.
J H DUKE and P J H A N N A

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Ultimately, the database will be the basis for which the

geologist will communicate:
the level of confidence an investor can ‘bank on’ from the
Resource estimate reported; and
relevant information to the mine planners who will determine
a reserve estimate based on the geological conditions.

GEOLOGICAL INTERPRETATION
Geological interpretation is a fundamental part of the resource
estimation process. In computer-based resource estimation the
geologist’s understanding of the structure and grade continuity of
the resource are translated as defined zones or ‘domains’ with
their unique geometric shape. In the case of a single coal seam
deposit for example, interpretation might involve delining the
floor and thickness of the seam (domain) and a boundary to limit
its extent either at subcrop or at depth. Software would often
need to be able to handle faulting and seam thickness
complexities such as washouts and seam splits.

Nature of data used

Geological interpretation for mineral resource estimation- is
always based on both the available data and the geologist’s
knowledge of the deposit. The nature of the relevant data used
for the interpretation often dictates how the geologist conducts
the interpretation and what assumptions arc derived about the
geology. For example, in the single seam deposit shown in Figure
LwBl
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10
Horizontot S c a l e -
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3, coal intercepts might be either visually logged by the geologist
from drill core or, interpreted seam intercepts from downhole
geophysical logs in ‘open holes’ (see Figure 4). It is assumed that
enough cored holes have been logged and compared to
FIG2 - Validation of borehole data against the geological model is geophysical logging data such that the geophysical ‘signature’ of
critical, and needs graphical capability in software systems. the seam can be accurately recognised.

216 Coolurn. Old, 14 - 17 May 2000 41h International Mining Geology Conference

Father-Son Relation
Complex Father-Son Relation.
Complex Father-Son Relation.
FIG3 - Accommodating scam splitting in a single seam interpretation
by splitting scam A in DH2 into three seam splits with a complex
fathcr-son relationship.
Flci 4 - Downhole geophysical data is often used to define splitting and coalescing coal seams.
4th International Mining Geology Conference
COMPUTER-BASED RESOURCE ESTIMATION
In the case of a complex gold vein deposit (see Figure 5 ) . the
data used to carry out the geological interpretation is derived
from a variety of sources - surface costean sampling,
underground stope channel sampling, reverse circulation
borehole sampling data and diamond borehole sampling data.
Hecause overall data density is often sparse, all available data is
used in the interpretation and the grade estimation even though
there are differences in sample size and technique.
Alternative interpretations
It is sometimes useful to compare alternative interpretations.
especially in an effort to arrive at the best resource estimate. In
the gold vein example both a 3D block model vein 'envelope'
and a 2D gridded high-grade vein interpretation were compared.
The 3D approach, whilst easier to define, caused problems of
'smearing' high-grade and low-grade gold estimations. The
definition and correlation of 2D high-grade veins (see Figure 5 )
to generate a vein model resulted in a much more accurate and
useful model for mine planning than the block model derived
from the envelope interpretation.
Grade and geological continuity
The factors that affect grade and geological continuity need to be
understood and this understanding carried through to both the
geological interpretation and modelling process. In modelling a
sedimentary uranium deposit it was found that interpretation of
lode intercepts based on 'economic' grades only, resulted in
some problems with the grade model. For example, as grades
diminished at the margins of the deposit it was important to
include a lower grade intercept at the edge rather than a zero
thickness intercept. The lower grades at the margin of the lode
prevented the higher grades from being extrapolated out to the
margin as i t did with the zero thickness intercept (see Figure 6).
Coolum, Old. 14 - 17 May 2000 217
J H DUKE and P J H A N N A

Costean , , I

/ data %’

Cross Section
Through Large Base
Metal Vein Type Lode
Channel
sample
- 2-GRID BLOCK MODEL
data I!,’ Orientation of
UL’ search ellipsoid

FIG7 - Block niodel of a folded, base metal vein-type deposit.

Transformed blocks are used to control grade estimation within the fold
- allowing for local changes in orientation of the search ellipsoidal.

metal lode (see Figure 7) use was made of transformed blocks (a

FIG5 - Section through a complex gold vein deposit showing the
hangingwall and footwall surfaces derived from vein ‘envelope’
intercepts interpreted from a variety of exploration data.
Geological Interpretation - using all relevant data to define geological domains which
Sedimentary Uranium Deposit
Interpretation 1
proprietary method called Z-Grid Control - see Cram and Duke,
1992) to control grade estimation within the fold.
ESTIMATION AND MODELLING TECHNIQUES
As discussed in some detail in our earlier paper (Duke and
Hanna, 1997) geological interpretation involves the geologist in
differentiate the various types of mineralisation in the deposit
and which stand up to the scrutiny of statistical and variogram
analysis. The resource model is then built by filling these
domains with blocks and estimating block grades in such a way
as to accurately reflect the geologist’s understanding of spatial
distribution within each domain.
It is important that block models are constrained by the
controlling geological elements of the deposit, such as lode
boundaries, structure and spatial distribution of grades and other
attributes. These controls are incorporated into the computer
model using such tools as wireframes. triangulated and gridded
surfaces and grade estimation procedures adapted to emulate
grade distributions.

half way deposit Choosing the appropriate estimation technique

to low
grade
intercept
FIG6 - Alternative geological interpretations of a sedimentary uranium
deposit affect the grade continuity in the resource model.
Using geology to control estimation
The use of geology in guiding and controlling mineral resource
estimation is particularly relevant to folded and faulted deposits.
For example, in modelling a steeply dipping gently folded base
Having defined the geological domains during the geological
interpretation stage, choosing the appropriate estimation
techniques involves finding ways of modelling the spatial
distribution of grades and other attributes within the domains.
Data analysis within domains
A study of the spatial distribution of assay data that lies within
each domain usually increases the geologist’s understanding of
the nature of mineralisation and provides the basis for
determining grade estimation strategies. This study involves
examination of data spacing, and trends in values displayed on
sections, plans and in 3D. along with statistical and variogram
analysis.

218 Coolum. Old. 14 - 17 May 2000 41h lnlemalional Mining Geology Conference

Treatment of extreme grade values
If extreme grade values exist within a single domain, there is a
danger that these values will cause undue influence on local
grade estimation. Strategies to rectify this include cutting high
grades, multiple estimations using different search parameters for
different grade ranges and use Of indicator kriging. These
extreme values are often due to smaller scale structures such as
mineralised stockwork veins. which are discontinuous and
impossible to domain separately.
Interpolation parameters
Grade interpolation methods include inverse distance weighting
and kriging. Kriging is a geostatistical method of allocating
optimal weights for local estimation based on the variogram
model. Grade interpolation parameters include such parameters
as scan distance, sample/sector selection criteria and anisotropic
ratios and rotation, Anisotropic control is particularly useful for
modelling deformed deposits (Figure 7). It is particularly
important to use the appropriate set of search strategies for each
domain.
Maximum scan distance
Choosing the maximum scan distance for grade estimation in any
domain involves both geological and practical considerations.
Practically, the maximum scan distance should provide for
sufficient samples in each search ellipsoid in order to generate a
valid block grade in each block. Geologically, the maximum scan
distance is in the direction of greatest grade continuity as
determined by the geologist’s knowledge of the data.
Block size vs borehole spacing
As a ‘rule of thumb’ blocks should be no smaller than a quarter
of the average data spacing in each direction. Some grade
estimation techniques, such as indicator kriging, require larger
block sizes. However if regularised blocks are used in folded
domains, such as the complex gold vein shown in Figure 5 , then
the blocks will need to be much smaller than one-quarter the
average data spacing in order honour the folded geometry of the
lode.
Model validation - The reality check
To validate the resource model there is no substitute for
comparing between the model and the relevant borehole data
plotted systematically on a full set of plans and sections. It is
particularly useful for this checking to be camed out both by the
Competent Person who will sign off on the resource estimate and
a geologist who has good knowledge and geological
understanding of the deposit (if not the same person).
Check estimates
A check estimate is camed out as a way of validating the model
on which the resource estimate is based. It is important that the
check estimate is camed out using an entirely different method
(often a more manual method such as polygonal or sectional
method) so that it provides a valid basis for comparison. In the
case of the complex gold vein deposit it proved to be very
important that the 3D block model of the vein envelope be
checked against the 2D vein model. In fact, it was the 2D vein
model that proved to be the most accurate and useful model.
Previous estimates
Previous estimates must be used as a means of checking and
comparing any resource estimate. Differences need to be
explained satisfactorily which maybe attributed to such factors as
a revised geological interpretation, additional data or differences
in modelling method.
4th International Mining Geology Conference
Coolurn. Old, 14 17 May 2000
COMPUTEK-HASED RESOURCE ESTIMATION
Reconciliation and mine production records
The real test of a resource model’s validity is how it reconciles
with what is actually mined. In practice however it is often
difficult to provide accurate reconciliation data, as the first step is
the estimate with production so as to
eliminate the differences between predicted and actual mining
losses and dilution,
RESOURCE REPORTING
In compiling a resource estimate. the JORC Code specifies that
the main governing principles are transparency, materiality and
competence. Computer systems, when used correctly, will
provide an abundance of support material to assist the estimator
in classifying the resources into their appropriate categories.
Histogram and cross-correlation graphs, variograms and
confidence models, and area of influence plots are usually quick
and easy to produce by computer-literate geologists today. As we
know with the interpretative nature of geology, it is easy to
produce enough statistical evidence to prove whatever result we
want.
However, as the JORC Code points out in Table I , at the end
of the day, the geologist should at least review the results to
determine whether they appropriately reflect the Competent
Person(s)’ view of the deposit. A reality check will assist the
Competent Person in determining whether they believe their
peers would agree with their classification. This is the ultimate
test of a resource estimate, and has given rise to the international
acceptance of the JORC Code itself.
One change of the 1999 JORC Code was the addition of the
diagonal arrows in Figure 1 linking Measured Resources to
Probable Reserves. This has provided the geologist with the
ability to recommend to the reserve estimator that although a
resource is considered as Measured, there may be other factors
that will influence the extraction of the resource thus reducing
the confidence of the reserve estimate.
One such example could be an underground coal resource,
which has been explored to the extent. whereby further drilling
would not alter the estimate of tonnage or coal quality by more
than say ten per cent. Although this would be considered as a
Measured Resource in the coal industry, other factors, such as
roof or floor conditions, gas regime, etc may require further
drilling data to confirm their effect on the mining viability of the
resource. Therefore the geologist should ensure that their report
reflects these concerns that may lead the reserve estimator to
classify the reserves as Probable rather than Proved.
CONCLUSIONS
The old adage ‘Give six geologists one data set and you will end
up with seven different interpretations’ reflects the true nature of
our profession. Today’s sophisticated geological and mine
planning software systems are designed with great flexibility to
be able to produce those seven different interpretations.
In this day and age, therefore, it is essential that the Competent
Person should be experienced not only in the geological
interpretation of a deposit, but also in the technology behind the
software system used to produce the resource model. This
technology know-how needs to cover two areas:
1. the methodology used to create an accurate resource model
including such tools as database validation, geological
control techniques and extrapolation algorithms; and
2. the methodology of estimation of resource tonnage and
associated grade.
Without this knowledge, it is quite likely that the ‘computer’
will produce the wrong result (garbage in, garbage out).
-
219
J H DUKE and P J H A N N A

General relationship between exploration results, Mineral

Resources and Ore Reserves
exploration results

I MINERAL RESOURCES ORE RESERVES

Inferred

Indicated Probable
4

Measured 4.. . -~*oo**o.g Proved

4 *
Consideration of mining, metallurgical, economic, marketing,
legal, environmental, social and governmental factors

FtG 8 - General relationship between exploration results, Mineral Resources and Ore Reserves in the 1999 JORC Code.

More importantly, with or without this technology know-how,
i t is essential that the Competent Person conduct a reality check
before publicly reporting any resource estimate.
REFERENCES
Cram, A A and Duke, J H, 1992. Geological Control in Computer-Based
Resource Estimation, SMEDG/AIG Resource Evaluation
Symposium, Sydney, 1992.
Duke, I H, 1987. Geological Modelling Techniques in Mine Planning. in
Proceedingr Pucific Rim Congress ‘87. pp 851-854 (The
Australasian Institute of Mining and Metallurgy: Melbourne).
Duke, J H and Hanna. P J, 1997. Geological Interpretation for Resource
Estimation, in Proceedings The Resourue Dutubare 7iiwurd.y 2000,
pp 99-109 (The Australasian Institute of Mining and Metallurgy.
lllawarra Branch: Wollongong).
Guibal, D. 1997. Variography. A Tool For The Resource Geologist. in
Proceedings The Resource Dutubuse 7iword.s 2000,pp 8.5-9I (Thc
Australasian Institute of Mining and Metallurgy, Illawxra Branch:
Wollongong).
- -
Hanna. P I and Cameron. I L, 1997. Computer Database and Geological
Modelling of Hunter Valley Geology. in Proceedings Thirty First
Newcustle Symposium on Advances in the Study of the Sydney Rusin.
April 1997, Newcastle, NSW, Australia, pp 53-SS.
Isaaks, E H‘ and Srivastava, R M, An Introduction 10 Applied
Geostutistics (Oxford University Press: New York).
JORC, 1999. Australasian Code for Reporting of Mineral Resources and
Ore Reserves (The JORC Code). The Joint Ore Reserves Committee
of The Australasian Institute of Mining and Metallurgy. Australian
Institute of Geoscientists and Minerals Council of Australia.

220 Coolurn. Qld, 14 - 17 May Zoo0 4th International Mining Geology Conference
Grade Control
Mining Grade Control - Past, Present and Future
W J Shaw'
ABSTRACT
The objectives of mining grade control are presented and examples of the
techniques used in various open pit and underground mines are used to
define the attributes of good grade control. Reasons are discussed for the
cuccess of various improved practices. The progressive development of
grade control is presented and the balance between quantitative and
qualitative data is analysed. The skills and rrsources required for grade
control on mine sites that are using best practice are also presented.
A number of problems in grade control have been solved recently
however there are still issues that need to be addressed. Examination of
the grade control process frequently stops after sample quality has been
examined. There is much more beyond this that can now be optiniised
using conditional simulation models Other future directions of mining
grade conrrol are also suggested.
An extensive bibliography of published papers on grade control is
included that will be maintained and updated on a wehsite.
OBJECTIVES OF MINING GRADE CONTROL
Objectives for grade control and for mining geology have been
presented previously: 'The objective of grade control is to
maximise the value of ore mined and fed to the mill.. ... 'The
objectives of mining geology are primarily to enable the mining
company to maximise profits by reducing the risk associated
with geological (and other) uncertainty.' (Shaw, 1990a). This
issue of risk management will be addressed later as it is now
more amenable to quantitative analysis than i t was ten years ago.
In analysing different approaches to grade control it becomes
apparent that there are similarities and differences between
various mining styles, various commodities and between the old
ways and the new. Some comparisons are presented here to
explore what grade control is. how it has developed and where it
is going.
There are always assumptions and unless these are stated at the
outset they can remain hidden. Let us start by ensuring that we
are in all cases talking about good practices; there is little to be
gained by supposing that grade control is now done by people
who arc more dedicated. or better trained than was the case in the
past. We will try to identify concrete improvements in techniques
that have contribuled to improving grade control.
SAMPLING
In most parts of the world grade control sampling is now done
mechanically. although in the past, and still in some less
developed countries, cheap labour meant that sampling was done
by hand. Very successful grade control of high-grade
underground gold mines relied in the past on panning of gold
samples during mining. I t is remarkable today to see remnant
underground workings that now define the high-grade trends in
an open pit mine. Large open pit gold mines currenily exist
where artisan miners using hand panning steal gold overnight,
leaving behind trenches in the richest parts of the ore. The
primitive 'grade control' techniques that defined such high-grade
trends are obviously very successful.
All sampling, whether i t is manual or by trenching or drilling,
should conform to the principles of sampling defined by Cy
(1979). lo ensure that the sample collected is representative.
Elaboration and improvements on this theory by Pitard (1993)
and Francois-Bongarcon ( 1998) have made i t more relevant to
I. FAuslMM. Principal Consultant, Mining and Resource Technology
Pry Lrd. Level 3. Kirin Centre. 1.5 Ogilvie Road. Mt Pleasanr WA
6153
4th International Mining Geology Conference Coolurn. Qld. 14 -
gold deposits. Good grade control depends on good data.
Application of sampling theory at many mine sites has made a
significant improvement to the quality of that data.
One of the biggest issues that faces open pit mining operations
is the balance between using blast holes and dedicated reverse
circulation (RC) drilling for sampling. It is not easy to balance
the costs and the benefits of these methods, although some new
strategies are further discussed later. Blast hole sampling is
attractive in hard rock mining because the holes are already
available. The disadvantages of blast hole sampling
(contamination and sample loss, leading to poor precision and
bias) are not always easy to quantify and there are few good
published comparative studies. The trend setting operations often
had to rely on subjective trials to justify a change to RC drilling,
but now many successful mines take the view that such dedicated
drilling provides better quality data in a more timely manner,
enhancing their capacity for selective mining. This was certainly
not the case ten years ago when dedicated RC drilling (eg as
discussed in Shaw, 1990b. at the first Mining Geology
Conference) was novel. The quality of RC drilling has improved
significantly with the introduction of face-sampling hammers
rather than crossover subs. Drilling companies have also
responded to pressure to reduce costs while meeting higher
standards of sampling quality. In many cases now the sampling
quality is stipulated in drilling contracts and mine sites routinely
carry out validation tests on sampling equipment.
Trenching techniques have changed from using rip lines to
cutting sampling trenches using rotary saws or chain saws (both
variants of Ditchwitch equipment). The smaller consistent
particle size overcomes many of the disadvantages of trenching
and enables samples that have demonstrably better repeatability
to be collected systematically. There is little to be gained now by
comparative test work between rip lines and Ditchwitch trench
samples, although very little has been published. Case studies
such as Pratt and Jankowski (1993) provide an insight into the
importance of geological controls in deciding the correct
orientation for grade control sampling.
Underground face sampling continues to rely mainly on
manual methods, ie collecting rock chips using a hammer and
chisel. There are variations on this approach depending on the
orientation of sampling and whether channels are cut or samples
are collected over an area. Alternatives generally rely on sludge
sampling of blast holes, or sampling muck piles of blasted
material or trucked ore. Sampling broken ore often shows poor
representativity and bias due to the particle size variation.
Dedicated drill sampling is generally adopted in large
underground mines once safety factors are seen as an issue.
Where the geometry of the orebody and the mining method can
support it, drilling well in advance of mining enables design of
the ore blocks to be based on true grade control sampling. Any
other sort of sampling is really too late to have much impact on
the grade of the ore blocks and is best described as reconciliation
sampling. Such sampling can only explain why the grade was
different to expectations; it cannot help to control the grade.
In examining the various sampling methods we have defined
some important considerations. Good grade control sampling
must be:
safe.
unbiased.
representative (ie correct in terms of Cy's sampling theory).
and
timely (so that the results can usefully define the ore blocks).
17 May2000 223
W J SHAW
ASSAYING
A similar approach can be taken to examining assaying or indeed
any other part of the grade control process. Assaying is one of
the most easily verified stages in grade control since the use of
Standard Reference Samples and inter-laboratory checks can
identify and control bias, while the submission of field duplicates
and pulp repeats can quantify precision at various stages of
subsampling and assaying. Assaying techniques vary
significantly with different commodities.
The adoption of standard assaying techniques is usually
unassailable. Some operations however opt for partial extractions
or quasi-metallurgical testwork that may emulate some part of
the mining or processing. For example i t is not unusual in
bauxite operations to measure the silica that is digested by
caustic soda at a specific pressure and tcmpcrature. Some
mineral sands operations define attributes as 'rock', 'sand' and
'slimes' at specific sieve sizes. Ferrous metal mines may use wet
screening to emulate scrubbing or the effects of crushing and
sizing in the mill. Such 'metallurgical assays' can all suffer from
the same problem: they assume that the test mimics some part of
the ore treatment or handling process. The problem with such
tests is that the mill configuration can change over time,
rendering the testing technique less relevant. Even standardised
empirical tests (such as the 'decrepitation index' for iron ore)
cannot account for changing practices over time and so need to
be reinterpreted for different conditions.
Of course grade control must be orientated towards predicting
those aspects of the ore processing that affect the value of the ore
and there will always be a need for such information. Effort has
to be put into developing cost-effective techniques that can be
reinterpreted as the mill configuration changes.
One of the big problems facing bulk shipping ores is the issue
of the LumplFines ratio and partitioning of grades and penalty
elements into various size fractions. The Lump/Fines ratio of the
ore changes with increased crushing, transport and handling.
While this is hard to predict i t is evident that the response of the
ore to such physical treatment may be controlled by the
mineralogy of the ore.
Normative mineral analysis is being adopted for more and
more deposits (Lipton et al, 1999). By assaying for a suite of
elements and then combining these according to theoretical
mineral compositions, the ratios of various minerals can be
estimated. Tying the physical characteristics of ore to such
normative mineral estimates may lead to a better understanding
of such physical attributes as the Lump/Fines ratio.
Problems in ensuring the useful application of consistent
techniques for longer term reconciliations can also arise with
partial extraction assays. Of course care should be taken to
ensure that the digestion techniques have not been changed over
time. However even when consistently applied the use of partial
extractions such as cyanide bottle roll tests (or even ayua regia)
for gold can be misinterpreted when reconciling with the mill.
Again it is best to ensure that such metallurgical assays are
constantly benchmarked.
The use of modem assaying techniques such as the Leco
furnace for S (which can provide assays for other volatile
elements) and ICP assays (which can provide assays for a broad
spectrum of elements) means that in many operations there is
now more information available than in the past. Assaying for
more than one element for grade control will become more
common. This imposes new demands on data management and
interpretation.
Adding to the previous list, good grade control assaying
should be:
based on measurable attributes that may safely be used to
predict metallurgical performance; and
comprehensive so that all the required data is collected.
224 Coolurn. Qld, 14 - 17 May 2000
GEOLOGICAL DATA
A grade control system that is not built on ;I relational database
to manage the assay data is heading for trouble. Whilc this may
be now well recogniscd. few operations perform well ;it
collecting and managing soft data (mapping and drill hole
logging). The incorporation of mapping data into mining grade
control is still an important g d for most mines. This will require
accessible 3D-visualisation software h i l t on a relation;il
database.
Finding the corfeci balance between soft geological data and
hard assay data has proved difficult for many operations. Where
there is abundant assay data (for example in those operations that
sample blast holes) there is often a tendency to discount
individual assays. If the sampling repeatability is poor, even the
average grades of the ore blocks may he regarded with some
scepticism during mining and the ore blocks may then be
radically altered. reclassified to a lower grade stockpile or even
set aside for resampling after mining. The ultimate reflection of
poor confidence in sampling and assays (the hard data) is a total
reliance on visual control (soft data) with close supervision of the
contacts by mining geologists who make subjective judgements
about whether material is ore or waste.
At the other end of the spectrum is a total reliance on the hard
assay data with a complete disregard of geological controls. The
impact of such a policy has been long appreciated in resource
estimation with a significant move away from the 'unconstrained
kriging' approaches that were prevalent during the 1980s.
However the use of contouring or even kriging to define ore
block boundaries is still evident at some sites. Sometimes there is
such an emphasis on collecting hard assay data and interpreting it
that the mining geologists do not have time to do mapping, let
alone incorporate the results into the ore block designs. This
approach appears most prevalent in opcrations that use close
spaced trenching or blast holes to sample every mining flitch. I t
is often worth investigating whether the geology (soft data) is
being effectively used, especially if assay turn-around times are
critical to ensuring the ore blocks can be designed before the ore
is dug.
A grade control system that disregards the geological controls
will never be optimal. On the other hand, a system that
maximises the use of good quality information in an efficient
manner can release staff away from the tedium of manually
interpreting ore blocks in a subjective manner so that they can
put effort into the mapping that will control future ore blocks.
The balance between hard and soft data is dynamic. Good
assay data provides new insights into geological controls. Good
mapping can significantly reduce grade control costs when the
operation moves away from sampling everything towards
targeting mineralised zones with high quality sampling. The
geological data also provides the controls that enable the best
balance between quality and quantity of sampling to be achieved.
Adding to the criteria for good grade control:
all available data should be stored in a relational database
with 3D coordinates (for integration with mining software);
an appropriate balance should be achieved between hard and
soft data for defining ore blocks; and
the gathering of expensive hard data (assays) should be
guided by the availability of cheaper soft data (mapping).
INTERPRETATION OF ORE BLOCKS
The need to convert data to information (and eventually to
knowledge and then wisdom) must not be overlooked. Many
grade control systems get bogged down in data collection,
validation and subjective manual interpretations. These aspects
of the grade control process can be very time consuming and
frustrating, when the data (hard and soft) is being under-utilised.
4th International Mining Geology Conference

In the past. for open pits the grade control assay data and
mapping were plotted on cross-sections and bench plans for
manual interpretation. The process of defining ore block
boundaries consisted of interpreting major lode directions and
contouring the cut-off grade boundary based on the assays. These
two separate sets of information were then merged and the final
cut-off grade boundary was defined. At this stage the mining
selectivity needed to be considered and so the mineable ore block
boundary was then superimposed. digitised and finally marked
out on the ground. As described. this process involved a number
of iterations and under the pressure of production i t was not
always possible to ensure that an audit trail existed that would
validate the final ore blocks. It was apparent that different
practitioners on the same mine site could interpret the same data
quite differently and that there was no easy way to arbitrate or
define the objective truth. This frequently resulted in the
definition of quite different ore block shapes on consecutive
mining benches in open pits.
For underground mining based on drill sampling well in
advance of ore block development, the interpretation problem
can be addressed using computer systems to ensure
three-dimensional integrity of the interpretations. For operations
relying on face sampling of the next development cut, or
sampling stoped ore. the decision as to what will be mined has
already been made and the sampling is of no value in controlling
the grade.
A risk management approach to mining grade control can be
developed based on conditional simulation (Dowd. 1996;
Khosrowshahi and Shaw. 1997; Shaw and Khosrowshahi. 1997;
Schofield and Rolley, 1997). Conditional simulation involves
generating a set of independent possible outcomes (realisations)
on a close spaced grid, that honours the real data (hence the word
‘conditional’) and models the spatial variability of the real data
set. The construction of a robust conditional simulation model
that encompasses a large number of realisations can provide
extensive information about the expected grade and the degree of
variability at closely spaced points. A number of questions
frequently come up that have not perhaps been adequately
addressed in the literature:
Conrlitionul .siiniilririon uppears to nrtificially increme rlie
level of sampling - how ccin this be possible? The approach taken
is to generate a series of new values between the true samples.
These new values should have a similar mean, dispersion and
histogram as the available true data and shoiild produce a similar
variogram. In addition, all the true values are retained and
honoured. Of course the new values are artificial: they are not
real new sample points and we would be foolish to believe them
immediately since we have generated only one possibility (a first
realisation) from the infinite number of alternatives that meet our
target parameters.
If condirional simulation can give us possible realisations of
the smull-scule vuriahiliry - which one of these is correct? No
single realisation is more valid than another. The approach taken
is to use these to define the expected variability at each simulated
point. Every realisation is ‘conditioned’ to the real data - this
means that the real data intluences every point. In areas where
there are a lot of high grades you can have a greater expectation
of similar high grades. In areas where the real grades are mostly
waste the effect is the opposite. This is intuitively acceptable.
That is why it is important to deal with a large number of
realisations. The approach to use is thus to generate many
realisations and to use them to indicate the likely risk of grades
being high or low at any point. If we have 50 realisations (or 100.
or 200). the distribution of the values at each point is used to
represent our expectation at that point. I f we have modelled the
grade (and any attribute can be modelled) we could determine
the probability that the grade will be above or below a nominated
cut-off grade. From this we can make a decision based on how
wc perceive this distribution will affect us. Since the risk is the
4th International Mining Geology Conference Coolurn. Old 14 - 17 May 2000
MINING GKADE CONTKOL - PAST. PKESENT AND FUTURE
inverse of the confidence we can select our risk position
according to our current circumstances.
A risk analysis approach enables the mining geologist to
produce ore blocks that are less subjective, that honour the
nominated cut-off grades, and that allow the risk profile (less
dilution or less ore loss) to be varied for each ore type. The dense
grid of simulated values enables the final ore boundaries to be
defined to a better resolution than the actual grade control
sampling pattern. Even in manual methods this is often done by
the more experienced practitioners who push the ore blocks out a
bit around the high grades near boundaries to be sure they do not
lose any ore. at the expense of taking a bit more dilution.
At operations that find this approach successful the geologists
have been able to devote more attention to mapping and to
incorporate real geological controls on grade.
Is the rechnique being widely used for grade control mark
ours? No. it is not yet common practice. MRT currcntly has six
sites using our Ore Block Optimisation (OBO) system, and there
are a number of other practitioners offering systems. There is
little published yet on the approach used or the results. The most
recent summary of the current state of the art was at the
International Symposium on Geostatistical Simulation in Mining
(28 - 29 October, 1999 in Perth) for which the proceedings are
still in press.
OBSERVED IMPROVEMENTS IN
GRADE CONTROL PRACTICES
Ten years ago reverse circulation drilling was rarely used for
grade control but now it is accepted as ‘best practice’. The same
can be said for good quality sample preparation: it is now
generally the practice to split 3 kg from the sample at the drill rig
and to pulverise this split using ‘total prep’, ie reducing it all to
better than 90 per cent passing 75 microns before subsampling
for assaying.
Other innovations are also gaining in popularity, including
better stockpile management. more comprehensive ore tracking.
audit trails, quality assurance and comprehensive reconciliation
reporting for management.
The reason for the success of various approaches is not hard to
find. The evolutionary process, ie ‘survival of the most fit’. is at
work ensuring that less successful practices (and mining
companies) are gradually eliminated through open transparent
competition. In some places the older ways survive, due to
misallocation of resources or protectionism by their adherents.
however in the long run the most successful practices eventually
get adopted and then persist. Even five years ago there was less
consideration given to validating assay quality than there is today
because there are now more practitioners around that understand
the problems that arise if data is ‘dirty’.
The mining industry has had a reasonably successful track
record at adopting these many innovations. Both the measurable
benefits and the intangible advantages of conditional simulation
will ensure that risk based definition of ore blocks will be
adopted at more and more operations.
SKILLS AND RESOURCES
Training of mining geologists that supervise grade control is of
major importance. The author has run a grade control workshop
course (Shaw. 1991) with over 450 participants. Many of the
ideas presented are now implemented routinely in grade control
all over the world. Other specialist courses in sampling and in
geostatistical estimation techniques have also made a significant
contribution. There is little evidence yet of the ultimate objective
being reached. that of a specific mining geology discipline with
specialisation in mining grade control. Without doubt this kill
happen as more practitioners find that a systematic approach to
225
W J SHAW
grade control makes i t a rewarding profession and more mine
managers see the economic benefits of scientific grade control
practices.
The skills required of a mining geologist involved in good
grade control are:
data management and presentation.
geological mapping,
statistical analysis. and
reporting and communication.
A sound appreciation of the principles in a number of
specialist areas is also required:
geostatistics and resource estimation,
sampling theory,
cut-off grade theory,
discounted cash flows (the time value of money),
mining engineering, and
mineral processing and metallurgy.
Resources that enhance the ability of grade control'
practitioners to perform well are now commonplace on most
mine sites, but include:
a data audit trail.
a relational database, and
appropriate mining software for plotting and interpretation of
data.
PROBLEMS IN GRADE CONTROL THAT HAVE
BEEN SOLVED RECENTLY
Examination of the grade control process often starts with
sample quality but sometimes the analysis never progresses.
There is much more beyond sampling that can now be optimised
using conditional simulation models.
There is a clear relationship between the sampling density and
costs of sampling. The relationship is less clear between the costs
of sampling and the benefits in terms of reduced ore loss,
dilution and misclassification. Understanding and balancing the
costs and benefits of various strategies is a major issue for many
operations. This relationship can sometimes be defined for
individual deposits by trial sampling or similar programs, or by
conditional simulation. In the former there are often many
parameters and operational factors that cannot be controlled (for
example the deposit can only be finally mined in one way).
Using conditional simulation, many different strategies can be
trialled. Cases have been previously presented (eg Shaw and
Khosrowshahi, 1997) that indicate the application of conditional
simulation to solving the problems of sampling grid optimisation
and ore block optimisation. While there is still much to do in
refining such techniques a sound general approach has been
established.
Thus good grade control must be demonstrably cost-effective
(ie it must show a positive cost-benefit).
FUTURE DIRECTIONS OF MINING GRADE
CONTROL
Supervision of actual mining practices and control of the ore
through various stockpiles will continue to improve. The actual
monitoring of ore movements will become easier as sites adopt
truck-despatch systems based on Differential GPS survey
control. However these systems need to interface with the data
management systems used by grade control if they are to produce
useful information. Real time accessible survey control in all
parts of the mine will also make geological mapping significantly
more effective.
226 Coolum. Old, 14 - 17 May 2000
In forecasting the future directions for grade control it is still
apparent that there needs to be improvements in the following
areas:
better sampling on drill rigs;
safer sampling underground;
hetter representativity in gold mines with coarse gold;
continuous survey control;
better integration of mapping and assay data at various
scales;
more integration of mine and mill tracking systems with
grade control predictions; and
better prediction of ore movement during blasting.
CONCLUSIONS
Mining grade control has come of age in the last 15 years with
recognition on many mine sites that it plays an integral part in
the successful economic exploitation of mineral resources. Mines
cannot do without grade control because while geological
boundaries may be sharp in many cases grades are continuous
rather than discrete. Since grade control is by definition about
'controlling the grade', the relationship between the discrete
geological controls and the continuous mineralisation controls
must be clearly established. This can be done by:
understanding all the various inputs to good mining:
keeping a balance between hard and soft data;
ensuring that grade control is optimal by continuously
evaluating the costs and the benefits; and
using risk based strategies to support decision-making.
ACKNOWLEDGEMENTS
Many of the ideas presented by the author on mining grade
control over the last ten years have been developed in
conjunction with mine site personnel and grade control course
participants whose support is greatly appreciated. Many
operations develop and solve specific problems and the industry
benefits when such advances are presented in open forums.
Many .of the real innovations leading towards a quantitative
approach to mining grade control have been developed with the
support and assistance of Dr Sia Khosrowshahi and my other
colleagues at Mining and Resource Technology Pty Ltd and their
support is gratefully acknowledged.
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O'Leary. J 0. 1979. Ore reserve estimation methods and grade control at
the Scully Mine.Canada - an integrated geologicavgeostatistical
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Peele. R, 1944. Mining Enpiieers Hundhook. 3rd Edition in 2 Volumes
(John Wiley and Sons: New York).
Pitard. F F, 1993. Pierre Cy's sumpling fheory mid sumpling prucfice.
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Pratt. J D R and Jankowski, P. 1993. The geology and grade control at
Bannockburn gold mine Leonora District. WA. in Proceedings
lnfernufionul Mining Geology Coirference, pp 195-206 (The
Australasian Institute of Mining and Metallurgy: Melbourne).
Robertson. I G and Sehic, 0 A. 1993. Ore quality control for process
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Koyle. A G. 1980. Geii.Yititi.rIiC.~.168 p (McGraw-Hill. Inc. New York)
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Shaw, W J. 1993. Practical solutions to some grade control problems and
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4th International Mining Geology Conference
Evolution of Grade Control at KCGM
V M O’Brien’ and T Cutts2

ABSTRACT

A
Since 19x9 Kalgoorlie Consolidated Gold Mines has managed the
Kalgoorlie gold operations of joint venture partners Normandy Mining
Ltd and Homestake Gold of Australia Ltd. Current production from the
Fimiston Open Pit is approximately 650 OOO ounces per annum. The
mine incorporates a multitude of narrow shear hosted. subvertical lodes,
predominantly within Golden Mile Dolerite.
Traditionally KCGM has used blasthole based grade control in the
Fimiston pits. A single sample is taken from vertical production
blastholes. drilled on ten metre benches. This process was improved with
the addition of infill drilling along blasthole rows to provide additional
samples across strike. However the limitations of adequately defining
subvertical mineralised structures with vertical blastholes remain.
In 1997 the first of two trial areas were drilled with close spaced.
inclined Reverse Circulation (KC) drilling. These tests indicated that KC
hased grade control had the potential to provide significant advantages.
These include:
improved delineation of mineralised structures. particularly across
strike;
reliable short-term mine schedules based on the advance data
available from drilling over three benches; and

the angled RC drilling is capable of providing samples of near s t o p
and stope fill material which often remains unsampled by blasthole
drills due to the safety constraints around unstable underground
openings.
Based on the succcss of this initial work RC based grade control was
gradually implemented across production m as commencing September
1998. Some of the many challenges faced include:
development of effective procedures and systems for the planning,
logging. interpretation and modelling of the RC data;
0 obtaining adequate drill coverage due to mine scheduling constraints
and restricted access around underground openings;
0 requirement for integrated systems to handle either blast hole or RC
data; and
0 development of effective methods to evaluate the performance of RC
grade control.
KC based grade control is delivering significantly improved lode
definition. grade estimation and subsequent ore classification.
INTRODUCTION
Kalgoorlie Consolidated Gold Mines manages the open pit and
underground Kalgoorlie operations owned by SW50 joint venture
partners Homestake Gold of Australia Ltd and Normandy
Mining Ltd. Approximately 80 per cent of gold production is
sourced from the Fimiston Open Pit located adjacent to the city
of Kalgoorlie-Boulder (Figure I ) .
KCGM has traditionally used blast hole based grade control at
the Fimiston Open Pit. In late-I998 a transition to grade control
based on angled RC drilling was implemented after trials
indicated substantial improvements in ore delineation and grade
estimation were achievable.
This study presents the development of systems and practices
during implementation and the many challenges met.
I. MAuslMM, Project Geologist. KCGM Pty Ltd, Black Street,
Kalgoorlie WA 6430.
2. Senior Mine Geologist. KCGM Pty Ltd, Black Street. Kalgoorlie
WA 6430.
/
MINE GEOLOGY
The Kalgoorlie gold field of Western Australia is located within
the NNW trending Archean Norseman-Wiluna Greenstone Belt.
The greenstone belt has been successively deformed and
regionally metamorphosed to grades varying from lower
greenschist to amphibolite rank. (Binns et a/. 1976 in Clout et a / ,
1990).
Local geology consists of a 3.3 to 4.0 km thick lower sequence
of ultramafic to mafic volcanic rocks and mafic sills overlain by
a 1.0 km thick volcano-sedimentary sequence. The mafic
gabbroic sills locally termed dolerites are conformable with other
rock units and as such are documented as part of the stratigraphy.
The main host rock for gold mineralisation is the Golden Mile
Dolerite, the largest of the intrusive sills in the district. This is a
differentiated gabbroic sill 600 - 900 m thick subdivided into ten
subunits. (Clout er a / , 1990)
The ore deposits which occupy\ an area of approximately
I O km x 2 km adjacent to Kalgoorlie-Boulder occur in two
distinct forms. The Fimiston style lodes of the Golden Mile and
the younger Mt Charlotte typp quartz stockworks. The Fimiston
lode system consists of an extc.isive range of mineralised shear
zones. The lodes are divided by the Golden Mile Fault into the
Eastern and Western Lode groups.
A textbook lode contains the highest gold grades within a
siliceous/pyritic core with grades decreasing with distance from
the central shear. Highest gold grades are also typically
associated with tellurides and alteration minerals with higher
vanadium content. Individual lodes may be up to 1800 metres
long, 1200 metres in vertical extent, and ten metres wide.
Approximately one thousand lodes have been identified at
Fimiston. These are grouped into lodetypes based on orientation.

4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000 229
V O’BKIEN and T CUTTS

The dominant lodetypes are the steep westerly dipping Main
Lodes and the moderate westerly dipping Caunter Lodes. The
distribution of lodetypes within the central mining area is shown
in Figure 2.
MINING HISTORY
Historic
The Fimiston operations arc centred on the Golden Mile area
which has bcen mined almost continuously since discovery by
prospectors in 189.5. A legacy of this historic mine production is
an extensive network of underground workings that extend down
to 1300m below surface. Stoping methods employed on the
Golden Mile by the various opcrating companies included shrink
stoping, cut and till stoping and open stoping. The oxide and
sand fill within the older cut and fill stopes is a gold reserve in its
own right. This material typically averages gold grades in excess
of 3.5 g/t. The last of the underground operations were shut down
in early 1994.
Prior to the extensive open pit mining which commenced with
the formation of KCGM in 1989 the Golden Mile had produced
in excess of 38 million ounces at an average grade of ten grams
per tonne.
Modern
Open pit mining in the Fimiston area commenced,in 1983 with
North Kalgurli Mines Limited’s Kemlo Pit followed shortly after
with the Croesus and Eclipse Pits. Numerous small-scale pits
were mined by various companies during the 1980s but
amalgamation of these pits was not possible until the leases were
brought under common management with the formation of
Kalgoorlic Consolidated Gold Mines.
Amalgamation of all mining and milling activities, subsequent
upgrade of the Fimiston Mill and the removal of infrastructure
constraints has seen the mining rate incrcase from 25 Mt per
annum in 1989/19YO to the current 65 Mt. Further rationalisation
of mining operations commenced in September 1999 with the
transfer from contract based mining to owner mining operations.
Drilling, blasting and excavation is carried out on IO m
benches. The mining fleet consists of three Komatsu PC8000
hydraulic shovels with a bucket capacity of 60 tonnes and a fleet
of 18 Caterpillar 793 trucks.
Fimiston’s current annual ore production target is
approximately I O Mt at a head grade of 2.3 g/t. This ore is
refractory in nature and is all processed through the Fimiston
Mill and the Gidji Roaster. Since 1989 the Fimiston Open Pit has
contributed 80 per cent of KCGM’s total production of 7.2 Moz.
Based on current reserves the open pit has a mine life of 15
years. The dimensions of the ultimate pit design are
approximately 4.3 km along strike by 1.5 km wide and 610 m
deep at its lowest level
Remnant mining
Open pit mining is complicated by the extensive historic
underground workings within the pit which present a hazard to
both personnel and equipment. The majority of the workings are
stopes less than 2 m wide, however large open stopes (up to SO m

I
L.

B: i
3’

.. ... ... .... .... -

. .. ...... ..amom€

[[Izno Non Typical Lodes

v/k Quartz Stockwork
--- Golden Mile Fault a 9
. -. .. . ___ -. . -. -. .-. . .- _

FIG2 - Plan of interpreted lodes at -190 mRL with the current pit outline.

230 Coolurn. Qld. 14 - 17 May 2000 4th International Mining Geology Conference

E-W by 1 SO in N - S by 120 m R L ) are o l particular concern.
These larger stopes wcrc prcdominailtly mined iii the I;wr years
ot uritlcrground mining using long holc stoping methods
Although m o s t historic workings wcrc wcll rccortlcd. the
deterioration o l openings ovcr time has rcquircd the dcvclopmcnt
o l comprehensive systems to ensure safe mining through these
arcas. Where undcrground workings arc dctcrrnined to be ;I
potential hazard the working bench is clearly flaggcd with tape to
dclincnte thc area. No personnel or machincry may cross safety
exclusion z.onc5 which iirc wspcctcd void areas dccmcd to have
imu flic ient cover.
The extensive nctwork of snfety exclusion mne5 in the pit
rcstrict ;icccss for drill rigs and prevent complete sample
coverage for grade control. Drill rigs ;irc not permitted to sit
within these ;irc;is and any drill hole which intersects
underground workings within the lint ten nictres must bc
;ibandoned. Thc cxclusiori zoncs are prevalent within ore mncs
AI\ seen in Figure 3
m nN
bXmN
' 7- N
'Mom N
FIG3 - Plan of thc -2.50 iiictre bench in the Wcstern Lodes showing the
extent of the safety exclusion zones.
GRADE CONTROL PRACTICE
Blast hole based grade control
The blast holc based grade control system at Fimiston has
evolved over time. A single blast hole sample is taken from each
blast hole drilled on a ten metre bench. The assay information is
supplemented with logging of blast hole cuttings and mapping of
blast faces. The standard blast hole pattern is 5.2 x 6.0 metres. In
4th International Mining Geology Conference Coolurn. Old. 14 - 17 May 2000
EVOLUTION OF GRADE CONTROL. AT KCG.Z.1
I997 drilling and sampling of infill holes along blast holc rows
was irnplerncntcd in known orc %onesto aid i n lode delineatioii
nntl gradc estimation.
lnterprctation o f ore zones utilising ;I 0.3 g/t cut-olf bountlary
is undertaken for each blast pattern. Historic inform;ition
iiicluding underground lcvcl plans and mapping, i n additiori to
bench above mining blocks is used to guide the interpretation.
Grade estimation i s performed using the multiple indicator
kriging method. Mining blocks arc then designed using this
model with mining selectivity i n mind. The tonnage and average
gradc of each block i s calculated and ;I destination applied bascd
on cut-oil grade criteria. Current block cut-oil gradcs are:
0 - 0.3 g/t w;istc
0.3 - 0.9 glt Subgradc
0.1) - I .2 g/t Marginal
I . 2 - 2.2 g/t Low-grade mill fced
2.2 g/t High-grade mill fced
Prior to blasting mining blocks are delineated on each shot
using flagging tape weighted with rocks. with the blast hole
collars used as reference points. This 'preblast' delineation is
used ;is a guide to the marking up of mining blocks o n the
blasted shot. Shot movement is generally minimal and is
rctlccted by the position of the preblast tape.
After a 12-hour settling period the blast is cleared and Survey
tape out the exclusion zones. After watering down ond visually
inspecting the potential ore zones blocks arc marked out using
taped peg lines and coloured flagging to delineate destinations.
Block boundaries are adjusted along lode contacts where
required.
Unless IICCCSS constraints dictate otherwise ore and waste
contacts are excavated across strike from the hangingwall side.
This is done to utilise the natural rill angle of the blasted rock
which corresponds with the dip angle of most lodes (60 to 80")
(Figure 4). The mining of contacts is supervised by geologists as
required.
Limitations of the existing system
Blast hole based grade control has obvious limitations when
sampling subvertical mineralised structures. There is poor
sample resolution across the mineralised plane. potential for
downhole sample contamination and the inability to sample
within the safety exclusion zones.
The most critical of these i s the safety constraints which
prevent collaring of blast holes near underground workings.
precluding the sampling of near stope and stope f i l l material. In
areas of extensive stoping the subsequent broad safety exclusion
zones often prevent the sampling of any mineralised material.
The delineation of mill feed hlocks in such areas is therefore
highly subjective. Even where the mineralised margins of a lode
arc sampled the inability to sample potentially high-grade
material adjacent to stope margins has a significant impact on
grade estimation. Areas unable to be sampled by blast holes can
be large and mostly occur within mill feed blocks or near mill
feed/subgrade or mill feedwaste contacts. Geologists have to
determine a suitable destination for the unsampled material and
assign a grade without adequate samples. These decisions arc
further hampered hy restricted access for geologists to visually
inspect this material on broken shots.
As blast holes cannot adequately sample stope fill material or
define stope locations. modelling of stopes is not possible.
Therefore voids and stope fill are treated as if they didn't exist.
These areas are assigned the same density as the in sifu ore and
are not distinguished from in situ material during grade
estimation, resulting in local overestimation of grade and
tonnage.
231
V 0’BRIF.N and T C U T S

Fic; 4 - Schematic of mining across strike to minimise dilution.

Blast hole based grade control at Fimiston suffered from a

system which focussed on individual blasts rather than
geological domains. Blast hole assays became available for each
single blast shortly before being fired. As such the interpretation
of face mapping, blast hole cuttings and assay grades for each
blast could not incorporate assays from any neighbouring-blasts
which hadn’t been fired. This often produced poor mark-up
correlation from one blast to the next as seen in Figure 5 .
Blast holes have historically produced variograms with
extremely high nugget effect values, suggesting poor correlation
between samples flagged within ore interpretations. When
variograms with high nugget effect values are used in the grade
interpolation of areas containing irregular high-grade samples,
the resultant model grades tend to be oversmoothed and
overestimated.
The problem of grade overestimation is evident in
reconciliations of previous grade control models. Reconciliations
between the grade control estimate and bullion calculated grade
for the 12 month period to December 1998 are within one per
cent. On face value this shows a remarkable correlation between
predicted and actual grade, however evaluation of the grade
control models during this period revealed that approximately ten
per cent of all mark-up blocks had a ‘corrected’ grade assigned.
Corrected grades are visually estimated by production geologists
when the modelled grade doesn’t reflect what is seen on the
broken blast. The large majority of corrected grades are lower
than the estimated grade.
Fici 5 - Plan of the - 130 metre bench in the Eastern Lodes highlighting thc
RC based grade control poor correlation of mark-up blocks across blast boundaries.

Acknowledging the deficiencies of the existing blast hole based

grade control system, a review of potential improvements was holes appeared capable of addressing many of the problems
carried out in late- 1997. Grade control utilising inclined RC drill associated with blast holes. These benefits included:

232 Coolurn, Old. 14 - 17 May 2000 4th lnternalional Mining Geology Conference
 EVOLUTION OF GRADE CONTROL AT KCGM

Inclined RC drilling would provide improved sample

coverage within safety exclusion zones, allowing accurate
delineation of mineralisation contacts, improved grade
estimation and confidence in the mark-up blocks.
The ability of KC drilling to accurately define stoped areas
and sample stope fill material would allow modelling of the
stopes. Stope modelling incorporating independent
estimation of stope fill grades and the application of realistic
densities to stopod areas is a large advance on the blast hole
syslem.
By drilling multiple benches in a single pass RC based grade
control would provide sample data in advance Ore
interpretations could be conducted on a larger scale and i n
311 iis opposed to the individual blast focus of blast hole
based grade control.
The advance data obtained would be used for the short-term
scheduling of production. This would give certainty to the
scheduling of production equipment and mill feed with the
associated cost benefits.
The obvious challenges associated with implementing RC
based grade control would be to achieve adequate sample
coverage and develop new systems to manage and interpret the
KC data. I t would require the geology department to manage the
drilling programs and integrate these into the mining cycle.

Grade control trials

In late- I YY7 a I<C drilling program was conducted on a small test
area (75 m by I SO m over three benches) targeting '2 Lode' and
'3 Lode' within the Western Lode system. RC drill holes were
drilled at a dip of 60" towards the east on I O m E-W sections. FIG6 - Plan of the RC trial area on the - I90 metre bench in the Western
Drill hole spacing along each section line was 6 m and samples Lodes highlighting the dilution incorporated using blasthole based grade
were taken at one metre intervals. Mineralisation and structural control
models were developed on-site and Snowden Associates Ply Ltd
were retained to analyse the drill hole data geostatistically and Y

perform grade estimation using a range of methods. 1R

The RC sample data revealed a more complex mineralisation
system than that anticipated by the mine geologists who had
:inalysed the blast hole sampling on benches located above the
test area. The results of the trial were favorable and led to
another small trial targeting '4 Lode' in the Western Lodes area.
Interpretation and modelling of these trial areas indicated that
excessive external and internal dilution was being incorporated
using blast hole sampling as shown in Figure 6.

Implementation of RC based grade control

Following the encouraging results of the two trial programs KC
based grade control was gradually implemented across
production areas commencing in September 1998 (Figure 7). In
order to successfully implement the new system a range of issues
had to be addressed to ensure both budget and technical
requirements were achieved. Furthermore the RC grade control
system had to be fully integrated with the existing blast hole
based system during this implementation phase.
Challenges included the development of effective procedures
and systems for the planning, logging, validation, interpretation
and modelling of the KC data. All systems were reviewed during
implementation, and modified as required. Most refinements
were due to the site specific problems caused by the presence of
underground workings while others were undertaken to achieve
time and cost-savings.

Drill pattern and drill hole planning

The standard drill hole design was for holes 38 metres deep,
dipping 60" towards 090" giving coverage over three mining FK;7 - Plan of the various production areas at Fimiston
benches. Coverage of 30 vertical metres was preferred as it

4th International Mining Geology Conference Coolurn. Qld, 14 17 May 2000

~
233
V O'BRIEN and T CUTTS

provides ample advance data and requires that production is

seldom disrupted by RC drilling in any one pit. The collar
co-ordinates, the design azimuth and dip and one single shot
survey at the end of hole are used to trace drill hole location.
Given the large area 10 be covered i t was decided that it was
impractical to maintain the drill pattern used in the trials. During
the initial trial i t was reported that sixty to eighty percent of the
gold variability occurred at less than ten to 15 metres in the along
strike direction for indicator grades approximating mining
cut-offs. (Snowden Associates, 1998) The drill pattern was
reviewed prior to implementation and changed to 15 m sections
with drill holes spaced at 8 m along section.
A one metre sample interval was used initially however this
was soon increased to two metres. Implementing two metre
samples carried a financial saving from reduced assay costs,
reduced sample handling and made interpretations easier. During
initial interpretations the geologists attempted to model the
mineralisation to match the intricate detail provided by one metre
assays. Considering the ten metre bench height and the mining
equipment used this level of detail was not required.
The initial area covered by KC drilling was the Western Lodes
which hosted the two RC trials. The next area to be drilled was
the Oroya South cutback which is characterised by thin,
relatively discontinuous lodes in the vicinity of the Paringa
Basalt contact. A review of the initial Oroya South drilling
program prompted a change in the standard drill hole design
from 60" to 55" to improve sample coverage on each bench.
The drill pattern is under review with the aim to reduce the
section spacing to ten metres for geolyjcally complex areas and FIG8 - Section at 48265 N showing that a range of drill hole orientations
to rotate the drill pattern 20" in Oroya South so that drilling are required to achieve adequate sample coverage.
intersects the dominant NNW striking Caunter Lodes at right
angles.
Drill hole planning is conducted on screen using Datamine
software. Owing to the presence of the safety exclusion zones at Drilling programs
Fimiston the planning of a RC drilling program is more complex
than simply fitting a grid of standard holes on the pit floor. The The initial drilling contract called for 90 000 metres per annum
with payment based on a flat rate per metre for all drilling
geologist designs a grid of standard holes which arc then
activities. In addition a worktime rate is applicable for recovering
reviewed in conjunction with the safety exclusion zone lost equipment and hole conditioning around stopes. The contract
perimeters for the bench and the sectional ore and stope calls for mobilisation of between one rig on a single shift to two
interpretations based on Resource drilling. rigs on double shift. This flexibility is required due to mine
Drill holes which cannot be collared due to the presence of scheduling and access constraints within production areas.
safety exclusion zones are deleted and replaced with drill hole To-date drilling requirements have been met using one
fans from the margins of the safety exclusion zones. The dedicated track mounted RC rig using a carousel system for rod
resultant drill pattern is often far removed from a standard grid. changeouts. Backup is provided by standard wheel mounted rigs
This variability in drill hole design is necessary in order to which are utilised as required.
achieve representative sampling of ore zones. Before drilling can commence each drill hole site must be
The area below designed holes is reviewed and areas wherc approved by the geotechnical department to cnsure sufficient
safety exclusion zones are expected to restrict drilling are advance probing in an area has been completed and hazardous
identified. The drill holes are then extended to obtain sample areas flagged off. Drilling programs are managed by the mine
coverage in these areas. As seen in Figure 8 the combination of geologist assigned to coordinating all grade control work within
holes drilled from multiple bench levels can provide complete a particular cutback.
sample coverage across a bench. Drill schedules are updated weekly and tie in with the weekly
Drill hole depths arc restricted to less than 70 metres, which production plan. Orderly completion of drill programs requires
continual liaison between all departments including survey. drill
covers up to six benches. Drill hole deviation in drill holes less
and blast, mining and geotechnical.
than 70 metres deep has traditionally been minor and single shot
surveys were considered adequate. Holes greater than 40 metres A review in April 1999 saw the annual drilling budget revised
have single shot surveys taken every 25 metres. up to 160000 metres per annum. This is required to ensure
complete KC coverage in all cutbacks.
The KC drill hole planning process has to be flexible to
I .

account for changes in access for drilling due to changes in

safety exclusion zones or changes in production schedules.
Another obstacle to obtaining complete sample coverage is the
difficulty in successfully penetrating multiple stopes. In a typical
drill program only 70 per cent of holes designed through stopes
successfully reach target depth. To maximisc sample coverage
the drill hole planning system involves a continuous process of
review and infill drilling.
Data processing
Successfully managing and processing the enormous amount of
grade control data generated is a formidable task. A major
undcrtaking was to devise a simplified logging system which
would allow documentation of the significant geological features
of each logged interval while minimising the time spent
collecting and processing this data.

234 Coolum. Qld. 14 - 17 May 2000 4th International Mining Geology Conference

After ii review of available logging hardware and software it
was decided to develop a simplified site based logging system.
A4 logging sheets were developed which recorded lithology.
oxidation state and two alteration codes for each interval. The
sheets are scanned using ‘Remark’ software with manual entry of
the drill hole name. final depth and sample numbers. This system
allows fast logging of drill cuttings in the pit followed by
minimal data entry work. thereby providing large time savings.
Pederson and Reardon ( 1999) outline the development of this
system.
This was supplemented by the development of a simple drill
hole validation system which summarised the hole depths,
number of samples, logged intervals and surveys. Final drill hole
validations are carried out on-screen using Datamine software.
Interpretation
KC based grade control required the development of a new
interpretation and modelling process which could be
incorporated into the current system. Interpretation of ore, stopcs
and lithology boundaries are carried out on screen using
Datamine with initial interpretations conducted on IS metre
sections followed by plan interpretations every ten metres. Ore
perimeters are defined by a nominal 0.3 glt assay boundary with
a five metre minimum interpretation width enforced for plan ore
perimeters.
Every known lode has a unique, numeric Lodename value
which is assigned to the corresponding ore perimeters. The
Lodetype field is used to record the mineralisation style and
geometry of each lode.
The interpretation system links to the KCGM Oracle Database
to provide access to the existing Resource Definition lode and
stope interpretations, structural mapping data, underground level
workings and geotechnical data. Resource Definition drill holes
are used to supplement RC grade control drilling during
interpretation and modelling.
0.640gk Downhole (-60-->090) Semi-Variogram
Lag distance: 2
1.20
1.10
t
-I.
0.30
--
0.20
--
0.10
--
1 I I I I I
0.00 ’
0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00
FIG9 - Downhole median Indicator variogram for Main Lodes in the Western Lodes Group
4th International Mining Geology Conference
Coolurn, Qld. 14 17 May 2000
EVOLUTION OF GRADE CONTROL AT KCGM
Modelling and grade estimation
Modelling of the grade control interpretations is performed using
a menu driven macro with Datamine software. Perimeter
projection of the plan interpretations is used for block and
sample selection.
Standard ore and stope cell dimensions are two metres E-W,
by five metres N-S and ten metres vertically. All Lodetypes
except Cross Lodes are subcelled to one metre in the E-W
orientation to improve representation of narrow ore zones in the
model. Cross Lodes are subcelled to 2.5 metres in the N-S
orientation.
Any one metre drill hole samples are composited to two metre
intervals prior to estimation. Topcuts applied to sample data are
based on statistical evaluation of each Lodetype within the
different geological domains. Most Lodetypes in the Western
Lodes have 25 g/t topcuts applied whereas the dominant
Lodetypes in the Eastern Lodes have topcuts of about 20 p/t.
Indicator variograms produced from the KC data had the lowest
nugget effect values seen at Fimiston. in the order of 30 per cent
as seen in Figures 9 and 10.
Grade estimation is conducted using either Ordinary Kriging
(OK) or Inverse Distance (ID) methods. Each lode is identified
by its Lodename value and interpolated separately. Estimation of
the ore is performed using OK for all lodes except those that are
poorly sampled. Search ellipse ranges used during the first pass
of estimation of Main and Caunter Lodes are 20 x 20 x 6 metres
(dip x strike x cross dip). The second and third estimation passes
employ double and triple the search ranges respectively. The
third estimation pass is based on Lodetype rather than
Lodename. Any model cells not estimated during the first two
passes may be estimated using samples from nearby lodcs with
the same Lodetype. This ensures all ore cells have an estimated
grade.
Tolerance angle: +/- 1 degrees
I I I I I I
Distance
-
235
V O'BRIEN and T CUTTS
0.64Oglt Semi-Variogram for -60-->270 (1)
Lag distance: 8
1.20
1.10
1.oo
-0.90
0
cmr 0! '8 0
0
-0.70
m
E 0.60
5 0.50
c3
0.40
0.30
0.20
0.10
0.00 4 I I
1 I
I
0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00
R c i IO - Along strike median Indicator variogram for Main Lodes in the Western Lodes Group
Stope f i l l material is estimated indepcndently using the Inverse
Distance Cubed method. A single estimation pass is conducted
using a 40 metre search range, with any cells remaining
unestimatcd given a conservative default grade. The ore and
stope models are combined and density values applied according
to lithology and any previous sloping.
Modelling can be conducted for entire mining benches or
individual blasts and are then incorporated into the standard
grade control computer system used for blast hole based grade
control. The orelwaste blocking, prcblast and markout procedure
is the same as used for the blast hole based grade control.
BENEFITS TO-DATE
The primary benefit of the RC system is improved delineation of
lode contacts and confidence in grade estimation. The mine
geologists can better correlate the ore block design based on the
RC drilling with block inspection during markup. This has
virtually eliminated the need to arbitrarily assign grade estimates
due to poor Confidence in the model estimates. This equates to
improved block classification and more importantly reduces
misclassification of material type. Prior to July 1999 there were
long periods of significant overcall in the mine predicted grades.
Since this date the proportion of mill feed delineated using RC
grade control has increased significantly. This has resulted in a
dramatic reduction in the grade variance.
Previous short-term planning models were based on a
combination of projected grade control data from previous
mining benches and the Reserve model which is based on
relatively sparse Resource definition drilling. Owing to the
heterogeneous nature of the lode system this can result in major
differences between tonnages and grades predicted from the
short-term scheduling model and those seen when the latest blast
hole data is modelled just prior to blasting and markout. This
discrepancy leads to continual rescheduling of mining priorities
in ordcr to meet grade and tonnage targets.
236 Coolurn. Old. 14
Tolerance angle: +/- 10 degrees
1
I
I
I
I
I I I 0
Distance
The new scheduling models which incorporate the three bench
RC grade control models correlate well with actual mine
performance. This leads to an environment of proactive and
efficient mine planning and enables the opcration to significantly
reduce the costs associated with suboptimal scheduling.
Another major benefit is the accurate ground condition data
available from the RC drilling. The advance three bench data
leads to large voids being detected sufficiently in advance of
mining to enable modifications to the mine plan if required.
Standard probe drilling conducted by the Geotechnical
Ilepartment only provides information one bench in advance.
The RC holes are also used for cavity monitor surveys which
result in vastly improved 3D models of the previous mine
workings.
FUTURE DIRECTIONS
The introduction of RC based grade control has been a process of
continual evaluation of systems and review of potential
improvements. This evaluation is ongoing and several projects
have been flagged including wireframing and the use of
conditional simulation techniques.
Wireframing of the ore and stope interpretations is being
assessed. Wireframing would allow improved representation of
the flat dipping lodes in the model and refined flagging of lode
samples. The application of conditional simulation techniques
has potential and will be trialled in the near future.
The improved lode definition from RC drilling has prompted a
review of the economic benefits of split bench mining for narrow
and shallow dipping lodes. A trial of split bench mining is
planned to be performed in the Oroya North cutback in the near
future.
Comprehensive assay quality control procedures arc currently
being established for grade control. These incorporate the use of
duplicate samples. waste standards. repeat assays and pulp
standards.
- 17 May 2000 41h Inlernational Mining Geology Conference

SUMMARY
KC grade control was implemented at Fimiston after trials
indicated excessive dilution was being incorporated with existing
grade control methods based on Blast hole sampling. There was
potential to improve ore delineation and grade estimation by
utilising inclined drilling with two metre samples.
T h e new system has led to more accurate ore interpretations
and reliable grade estimates. This is reflected in the confidence
the mine geologists have shown in the grade control models. This
confidence translates into a consistently close correlation
between these predicted models and the actual ore/waste markup.
Economic benefits of the new system are apparent in improved
mine to mill reconciliations and more robust short-term mine
schedules.
T h e implementation has been ii major undertaking, with full
coverage in all mining areas taking much longer than anticipated.
With the ma,jority of issues now addressed the new system is
expected to be in use across all production areas by January
2000.
4th International Mining Geology Conference Coolum, Old. 14 - 17 May 2000
EVOLUTION OF GRADE CONTROL AT KCGM
ACKNOWLEDGEMENTS
From trial programs in late-I997 to full implementation of KC
based grade control across Fimiston in December 1009 there has
been a considerable effort by the Mine Geology group. T h e
authors would like to thank all those who have contributed to the
development and implementation of KC based grade control.
Thanks to all reviewers of this paper and to K C G M management
for allowing us to present this paper. We also appreciate the
support and guidance of both Homestake Gold of Australia Ltd
and Normandy Mining Ltd throughout the entire process.
REFERENCES
Binns, R A, Gunthorpe, R J and Groves, D 1. 1976. Metamorphic patterns
and development of greenstone belts in the eastem Yilgxn Block,
Western Australia. in The €ur/y History of thr Eurtli (Ed: B F
Windley), pp 303-313 (John Wiley: London).
Clout, J M F, Cleghorn. J 11 and Eaton. P C, 1990. Geology of the
Kalgoorlie gold field, in Geoloxy of the Minerul L)eposir.y of
Ausrrtrliu trrid fupuu New Guineu (Ed: F E Hughes). pp 4 I 1-43 I
(The Australasian Institute of Mining and Metallurgy: Melbourne).
Pederson. L and Reardon. C, 1999. Adaptability - The key to an
integrated grade control computing system. in Proceedings A P C O M
Computer Applicufions in the Mineruls Industries. (Ed:
K Dagdelen), pp 601 -609.
Snowden Associates, 1998. Kalgoorlie Consolidated Gold Mines -
Reverse Circulation Grade Control Conditional Siinulation Study.
237
Coolum. Old. 14 - 17 May 2000 4th InternationalMining Geology Conference
The Use of Magnesium Oxide and Iron to Predict Host Units in
Grade Control and Exploration at Bulong Nickel Operation
W J Bollenhagen’
ABSTRACT
At Bulong. the mineralised (>0.8 per cent nickel) ore exists within
numerous lithologies. which can and do occur coincidently. I t is very
important to discriminate between the different host units for estimation
purposes, stockpiling and scheduling. This allocation of host unit has
relied upon visual interpretation by the geologist recording the
information. which can be very subjective by its nature.
By using quantified constraints, such as assayed magnesium oxide and
iron, the subjectivity of describing the host material of nickel lateritc ore
is reduced. The constraints permit consistent identification of the various
host units, which improves the confidence in the overall estimation and
scheduling of the ore.
INTRODUCTION
The Rulong Nickel Project (Figure 1) has a nickel resource that
is contained within the laterite profile of highly weathered
ultra-mafic rocks.
FIGI - Bulong Nickel Operation location map.
I. MAuslMM, Mine ResourcelDevelopmentGeologist, Bulong Nickel
Operation Pty Ltd. PO Box 10391. Kalgoorlie WA 6430.
4th International Mining Geology Conference Coolurn. Qld, 14 -
In the most simplistic way the laterite is described as being
comprised of a number of different units, termed ‘lithologies’.
Each clay lithology of the laterite bears its own unique physical
and chemical characteristics. It is these characteristics that also
determine the degree, if any, to which these lithologies are
enriched with nickel a n d o r cobalt. The notion that these
lithologies exist as completely ‘flat lying’ entities is a notion that
should dispelled, they can be highly irregular and strongly
structurally controlled.
With the passing of long periods of time nickcl ‘mobilises’
from the parent minerals (olivine) of the bedrock and ‘relocates’
to other ‘vacant’ sites in the profile. This occurs because of a
change in the surrounding environment, such as pressure,
temperature and pH. Which results in the mineral lattice being
modified to a different stable physical and chemical form.
This is a simplification of the process known as ‘nickcl
laterisation’.
At Bulong a number of variables influence the development of
the laterite profile and many ‘types’ of laterite profile can
develop in a selected area. A number of ‘high-grade’ nickel
deposits have been identified that have characteristics that are
unique to each other.
It is because of these characteristics that each deposit needs to
be investigated separately when considering the processes of
nickel enrichment and mining scheduling.
This paper will investigate the characterisation of different
lithologies using their direct relationship with iron (Fe) and
magnesium oxide (MgO) values. This m e t h ~ d allows for
objective and consistent ore discrimination. which improves
confidence in resource and grade control delineation.
Project description
Preston Resources NL has a large lateritic resource of nickel and
cobalt at Bulong, from which it intends to develop the high-grade
portions during the initial years of the project. The
hydro-metallurgical processing comprises:
acid pressure leaching at 250°C.
solvent extraction (SX), and
electro-winning.
Ore containing high-grade nickel and cobalt is processed to
produce London Metal Exchange (LME) grade nickel and cobalt
cathode.
The project is located close to the abandoned Bulong townsite,
approximately 30 km due east of the City of Kalgoorlie-Boulder
in Western Australia.
The climate of the area is classified as arid, with an average of
257 mm of rainfall per annum. The frequency of rainfall is low
and the variability is high, with infrequent very heavy rains.
Owing to high average temperatures, the losses by evaporation
exceed the rainfall amounts in all months of the year.
Geology
The bedrock comprises a thrust sequence (up to 4 km wide), of
steeply dipping Archaean ultramafic volcanic flows - the Bulong
Complex - within a sequence of mafic volcanic and sedimentary
rocks. Olivine-rich ultramafics, particularly peridotites and
17 May 2000 239
W BOLLENHAGEN
dunitcs constitute the significant proportion of the sequence,
these have undergone low-grade (grccnschist facies)
metamorphism, (Elias, Donaldson and Giorgetta. 198I ; Burger.
1996).
The sequence has been extensively serpentinised, and in places
suffered talc and carbonate alteration. The talc possibly reflects
the zones where shearing was most active within the ultra-mafic
suite, the talc units appear to form very important ‘buffers’ for
mangancsekobalt mineralisation development.
The Bulong laterite deposits developed in Mesozoic and
Tertiary times under a climate more humid than at present.
Profile characteristics in places suggest multiple episodes of
weathering while elsewhere the latcrite has been partially eroded
or covered by youngcr detrital clays and sands (Elias, Donaldson
and Giogetta, 198 I ).
There is potential for nickel and cobalt laterite development to
be a result of biological activity (Burger, pers comm).
LATERITE
Processes of formation
The typical laterite profile is characterised by a number of
distinct lithological subdivisions. These lithological divisions are
based upon:
mineralogical composition, and
chemistry.
For nickel laterite at Bulong, the most important lithologies are
referred to as:
ferricretc,
limonite,
nontronite,
serpentine,
talc, and
chert.
Fresh rock is encountered at some point beneath these
lithologies and the laterite profile stops.
The depth and extent of laterite development is quite varied
and is influenced by a number of coincident factors.
Workers (Parianos and Rivers, 1996) have identified these
factors, which can be grouped under two categories:
I. physical, and
2. chemical.
Physical
Is typified by water movement and environments that influence
its rate and direction.
Water flow is influenced by:
rainfall,
rock structure and texture, and
geomorphology.
Chemical
Primary chemical influences arc from:
bedrock composition (competing chemical solubility’s);
input from vegetation cover (organic); and
0 the relative resistance of different existing laterite
mineralogies, to changing water chemistry.
The physical and chemical factors determine the degree of
‘weathering’ that a rock undergoes. The degree of weathering
influences what elements and volume of these elements are
released into solution, which in turn, defines the depth, chemistry
and physiography of the laterite profile development.
240 Coolurn. Old, 14
The more soluble minerals (Si, Mg and Ca) typically mobilisc
to the base of the profile, whereas the relatively less soluble ones
(AI, Fe, Ni, Co and Cr) are concentrated at the surface.
The rate of weathering is faster in the tropics because of thc
warmer and wetter environments. The rate of ionic exchange of
cations from the crystal lattice and hydrogen ions from water
increases in humid environments (Twidale. 1976)
The movement of ions occurs to maintain equilibrium in the
rock profile and requires parent minerals to undergo chemical
reactions that permit the formation of other more stable minerals.
Possibly in the future these physical and chemical factors will
be comprised in a more unifying description - biological.
NICKEL LATERITE
This is one class of laterite and i t hosts the primary ore
encountered at Rulong, another example of a laterite deposit is
bauxite, which is aluminium (AI) enriched.
Nickel laterite deposits are derived from olivine rich rocks
(ultramafics), these are often dunites or peridotites. These rocks
have magnesium oxide (MgO) and nickel (Ni) contents
substantially higher than other crustal rocks (niafics and
grani toids).
Whilst the rock is in a molten state (magma) below the earth’s
surface conditions are right for nickel to partition into the lattice
of available olivine minerals, likewise cobalt (Co) partitions itself
into available pyroxene lattice.
These magmas are then extruded onto the earth‘s surface, as
volcanic flows (often submarine) and harden as broad sheets.
Other later flows consequently are extruded and cover these
original ones.
The individual flows have unique chemical signatures. but the
effects of weathering and alteration often mask those signatures,
making them indistinguishable from each other. Over large
periods of time these sequences of rocks are subjected to various
structural and metamorphic changes. resulting in the original
‘sheet’ appearance being greatly altered.
At Bulong this geological situation exists, where these sheets
now exist in an upright (near vertical) nature and due to
deformation have been faulted and thrust past one another
resulting in some thickening of the sequence.
After tectonic movement and at relatively shallow crustal
depths (<4SO0C and abundant H20) the primary olivine and
pyroxene minerals are altered to varieties of the mineral
serpentine. The degree of serpentinisation ranges from minor
alteration around fractures to complete metasomatism of the
rock
During weathering, acidic (C02 enriched) soil waters percolate
downwards and react with the ultramafic rocks, this causes Si02
and MgO to be leached from the mineral lattice into a solution
where it can become mobile. It is this ‘mass’ removal that
contributes to the preferential enrichment of other elements into
the sites made available by the leaching of the MgO and Si02.
With a considerable passing of time, a volume of mobile ions
move out of the mineral lattice. which re-organises itself to
accommodate the new environmental conditions (chemical,
physical and biological). This can be described as a chemical
system achieving a metamorphic equilibrium. thus laws of
thermodynamics can be applied to these exchanges.
At Bulong this process has resulted in economical nickel
deposits developing in the near surface part o f the laterite profile.
These deposits have been identified by exploration methods.
including Kotary Air Blast (KAB), Keverse Circulation (KC) and
Air-Core (AC) drilling.
- 17 May 2000 4th International Mining Geology Conference
 TI.1E USE OF MAGNESIUM OXIDE A N D IRON TO PREDICT HOST UNITS
Thc ore is typically partitioned into three types of lithology
within the lateritc prolile. These are ;IS follows.
Limonite zone
Strongly enriched in Fe and depleted in MgO.
This Lone is characterised by goethite and hematite with minor
kaolinite and quartz. The goethite is present as dry. loose clay,
which is overlain (in places) by a ferruginous 'hard-cap'.
l h e physiography and extent of development of this unit is
quite varied. Limonite development is greater where
ground-water drainage is good, if drainage is poor then limonite
development is significantly restricted. The colour varies from
light brown to dark brown; it has an 'earthy' texture.
The nickel content is typically lower i n this lithology than the
smectite lithologies. The Co content is typically higher in this
lithology than the underlying smectite and serpentinite. Towards
the surface the goethite is replaced by hematite, Fez03 and the
Mn-oxides are leached away.
The presence of limonite in certain parts of the laterite profile
is a strong indicator of structural complexity.
Smectite zone
This clay zone is not always present, but characterised by
strongly Ni enriched nontronite clays together with
montmorillonite, bcidellite and saponite. A wide range of
chemical variation is reported in association with this lithology
The clay zone is characterised by the presence of nontronite
clays ().
Nontronite is the primary smectite encountered at Bulong and
for simplification all clays containing high moistures (+20 per
cent) are referred to as nontronite. The nontronite is pale-green to
deep green, often with black Mn-oxides. The green colour is
attributed to the presence of Fe*+, however where species
enriched with Fe++ exist, these are brown to red-brown in colour.
The physiography and extent of the nontronite development is
constrained by the amount of ground-water retained in the
laterite protile. For nontronite development to occur, drainage
has to be poor. so in a heavily fractured rock it would bc
expected that nontronite development would be restricted.
The Hulong deposit is fortunate to have a number of areas that
are dominated by nontronite rich profiles.
Serpentinite zone
The serpentinite zone contains relict bedrock mineralogy
(serpentine) together with some smectitc and secondary silica,
MgO is significantly elevated in this lithology. It is the
transitional part of the laterite profile where there is a decrease in
strongly weathered matcrial and an increase in less weathered
rock.
The material can comprises a mixture of clays (nontronite
and/or limonite) and partially weathered fresh rock (antigorite),
often as remnant fragments. However, depending on the degree
of weathering that the rock has been subjected to, a 'core-stone'
may have developed in situ. This 'core-stone' exhibits
mineralogy that is more representative of the unweathered
bedrock. Mineral features and textures arc preserved in this
lithology and parent rock identification can be made. At Bulong,
the serpcntinite is derived from an olivine rich ultra-mafic, thus
its texture is dominated by the features of the weathered olivine
crystals. The serpentinite sample exhibits a grey-green colour
and small ( 4 . 5 cm) weathered, sub-rounded olivine crystals can
be seen in the rock fragments.
A minor to strong presence of silica with a lesser, variable
magnesite may also be encountered in this zone, in the form of
chert or chalcedony.
4th International Mining Geology Conference
Coolurn, Old. 14 17 May 2000
Relative to the nontronite clays, considerably lower ore grades
;ire encountered in this part of the profile. although some
intervals report high Ni grades in scrpentinite.
The MgO level becomes elevated at the interface of the
serpcntinitc and the unit above (smectite, transported clays.
ferricrete or limonite/goethite) and the levcl continues to rise
down through the profile until the 'background' MgO level
(between 25 and 40 per cent wt.) is reached. The presence of
magnesite can distort the background MgO values for the
serpentinitc.
ORE PROFILING
Now that the complexity of the laterite has been introduced. this
section will focus on the other complexities that have to dealt
with by the geologist. for the purpose of providing the required
'ore feed blends' to the auto-clave.
Because of the high prcssurc and hot acid treatment of the
lateritic ore. many chemical rcactions occur during the ores
'digestion' in the autoclave. The complexity of these reactions is
a direct result of the mineralogy being treated.
In the initial steps of processing the ore, reactions are sensitive
to the amounts of Fe, MgO, Mn and Cr present in the ore feed.
Subsequent steps in refining thc ore are sensitive to the Cu and
Mn levels. The geologist has to have a high degree of confidence
in their ability to differentiate between different ore 'types', so
that the ore that is being scheduled for processing conforms to
the specifications stipulated by the metallurgists.
Differcntiation bctween the lithological units can become very
subjective. This can lead to misclassification of the ore
lithologies and consequent dilution or miss allocation of feed
grade. Fortunately, a relationship exists between both interpreted
lithology (mineralogy) and bulk sample chemistry, which has its
origin in the lateritic formation proccss.
The nickel deposits at Rulong have unique location-specific
ore and lithological characteristics as a consequence of the
processes behind their development. Any relationship developed
between the chemistry and the lithological units remain unique to
the deposit. To be practical for grade control and resource
delineation any technique needs to be simple and flexible.
In order to develop an understanding between chemistry and
lithology, the analysis was performed using drill hole and
available grade control data. For selected areas of interest, all
assay data was sorted into its various different lithologies
(provided by geological logging), with averages and tolerances
calculated for each lithology. To simplify the lithological
representation, the relationship developed is restricted to the
elements Fe and MgO.
These two elements are selected because, in addition to silica
they comprise the dominant parts of the clay mineralogical
composition. The mineralogy of a selected part of a laterite
profile will be reflected by the percentage of Fe and MgO
present. In the simplest terms, the weathering process of
ultramafic rocks preferentially enriches Fe in a profile as MgO is
removed with silica from mineral lattices.
Flow of weathering
An ideal representation of the path that olivine in ultramafic
rocks undergoes during 'weathering' is presented below:
Olivine
\ MgO
.1
Serpentine
\ MgO + Si02
-
241
 W HOLLENHAGEN

.1
Nontronite
L MgO + Si02
J. SOW - ... . . . . . .

Limonite
40 00
L MgO+SiO2
.1
. . ." ........
Haematite Y

Importantly at every stage during weathering, silica and/or . "n

71 -"
, magnesium oxide arc released to the environment. With good
<

drainage conditions these compounds are removed away from the

original site, however with the passing of time and changes in the
l o 00 : - *-. .-
tectonic regime they can be retained within the system. This 0 00 ....... ...... . . . . . . .

circumstance has occurred at a number of locations within the 0 00 5 03 1000 15 00 io 00 15 00

Bulong laterite profile, where significant volumes of magnesite . . . . . ...... hQ0 5

........ .....
and chert have been intercepted during drilling.
FIG2 - Represents the lithologies as a function of their assayed
MgO and Fe.
Method of analyses
The analyses were performed in a series of steps. The biggest influence on the results is the accuracy of the
original lithological descriptions (geological subjectivity), this
I. extraction of the data from the various databases;
influences destination of the corresponding sample intervals.
2. sorting the data into its separate mineralogies and Being able to account for 'penalty' minerals (MgO, Fc, and Mn)
subordinate mineralogies; is very important at all stages in the resources life.
3. calculating and presenting data to determine elemental One penalty mineral is highlighted in the graph. The elevated
'cut-offs'; MgO (>5 per cent) in the limonite sample lithology reflects the
presence of magnesite (MgCO3). The sample intervals have been
4. calculating the lithological code in terms of the intervals reported as being comprised of a dominant limonite mineralogy,
MgO and Fe content; and however they also have appreciable magnesite (MgO) (ie live to
5. graphically presenting the data against field logging of ten per cent).
lithologies. Also reflected in the graph above is serpentine ore that
A total of 13 279 assays were extracted from grade control contains subordinate nontronite. The presence of nontronite in a
data sets representing three different mining areas. serpentinite dominant sample lowers the MgO value and
This sample set comprised: relatively increases the Fe value being reported (Figure 3).
3177 nontronite,
6338 serpentine, and
3764 limonite.
The data was not selected on its economic viability.
The lithological codes created in step four were then read into
a database with the rest of the assay suite, these new lithological
codes are expressed as a numerical value, they can be then
represented graphically. This data along with corresponding
headers and lithologies were then read as drill holes into
Gemcom (mining software). Separately the exploration data was
also manipulated into this format so that it could be presented
along with the grade control data for comparison.
In Gemcom, the newly created lithological codes were brought
'on screen' graphically and coloured io distinguish them from
one another. Polygons were then created around the separated
lithologies, ie nontronite, ferricretdlimonite and serpentinite.
This was done irrespective of the nickel and cobalt grades.

RESULTS AND APPLICATIONS
Figure 2 is a graph of MgO versus Fe for each of the three
different lithological units, nontronite, limonite and serpentinite
recorded during grade control.
Immediately obvious from the graph is the degree of scatter in
the data points. This can be attributed to the simplification of
lithologies during data recording (logging) and the mineral
complexity of the in situ materials.
Despite the scatter, there is some correlation within each
lithology to a range of Fe and MgO values.
Fic; 3 - Photomicrograph of ore grade nontronite within barren serpentine
(scale = 100 mm).
From the assay data, mean and standard deviation was
calculated for each of the elements in each of the lithological
units (Table 1). The population means support the idea that there
can be some distinction made between each of these lithological
units in terms of their MgO and Fe contents. From the averaged
data presented in Table I , the following ranges for either MgO
and/or Fe are used for lithological differentiation.

242 Coolum. Old. 14 - 17 May 2000 4th International Mining Geology Conference
 T I E USE OF MAGNESIUM OXIDE AND IRON TO PREDICT HOST UNITS

> I O per cent MgO Serpentine Resource application

>30 per cent Fe Limonite The use of these Fe and MgO constraints ensures that the ore
< I 0 per cent MgO and N on t roni te lithologies are delineated properly. This is reflected in the
<30 per cent Fe variography performed during resource modelling, where lower
The above cut-offs are used by geologists to assist in the ore population variances and ‘nuggets’ arc estimated on application
delineation. To provide both accuracy for scheduling purposes of these constraints. It also serves as a check on how well the
and consistent ore feed to the auto-clavc for processing. different lithologies arc modelled, as ‘poorly’ modelled data will
show higher nugget effects and greater population variances. By
examining the laterites in terms of Fe and MgO a better
understanding of the local geological structure can be gained.
TABLE 1
Weathering is more pronounced in zones where ground water is
Averuge MgO cmd Fe for the data population, with free to move. Zones that are heavily fractured or sheared act as
staridard deviations (SD). very ‘open’ systems for water movement, whereas more
. .. . __ . .- geologically ‘quiet’ zones restrict water movement more.
Limonite (Fe rich) and ferricrete (Fe-rich) reflect these zones of
Mean (a) strong water movement and nontronite reflects zones of water
flow restriction.
Interpretation can be made using these chemistries to better
15.36 .. 2.95 ; understand and model the lithological units. Structural
1.78 complexities can be interpreted and modelled at the resource
. . . ... Iron (Fe) stage, assisting in better pit design and scheduling.
.

Mean (%)....-- Standard deviation (a),

Grade control application
I Nontronite I

Serpentine 14.43 The primary aim of grade control is to deliver ore that meets all
.-
1. . the processing requirements. Confidence in the nickel and cobalt
Limonite J 39.4.1. 5.64. grades is not the only focus. Other factors such as the ore’s
temporary destination on the stockpiles, the host lithology and
MgO content are as equally important. The use of Fe and MgO
It is these two aspects of ore delineation that are critical to the constraints by the mine geologist improve the confidence and the
‘smooth flow’ of ore through processing. Accurate delineation of required consistency of the ore. It enables the geologist to
ore prior to mining is very important for the mining sequence. discriminate between nontronite units that have high MgO
The percentages of ore lithologies delineated by the geologist contents and those of high Fe contents. These have different
need to be very precise so that the sequence and scheduling of mineralogies and material behaviour characteristics in
mining equipment can be prioritised to ensure maximum profit is processing. Figure 4, shows a complex geological zone that can
gained. The blend of ore to meet processing requirements is very be delineated by the use of chemistry. The different lithologies
specific. can bc delineated and in a clear and consistent fashion, which is

Flci 4 - Grade control trenches coloured by chemically derived lithology. with recorded geological type projected against the trench
Trench colouring; black - Serpentinite.dark grey - Limonite Femcete and light grey - Nontronite.

4th International Mining Geology Conference Coolurn, Qld. 14 - 17 May 2000 243
 W BOLLENHAGEN

essential to the opcrations performance. It can be seen that both

I the recorded (by geologist) lithology (displayed next to the
trench (line) and the calculated geology (colour of trench)
correlate well. for a two mctrc lateral and vertical sample
composite shown
There are however some discrepancies at the lithological
contacts where the geologist may not have identified the
probable dominant mineralogy. A complete lithological picture
provided by chemical delineation is shown in Figure 5 . This is a
geological interpretation of Figure 4. showing the 'hard
boundaries'.
The orebodies can appear complex and have the potential to
c;iusc some difficulties. but by understanding the many other
facets of the ore lithologies it enables greater ore definition. By
understanding and modelling the complcxities the geologist can
aid in the 'front end' materials handling of the ore within the
mill, as well iis understanding discrepancies in sample values at
this point of processing.

CONCLUSION
For a cut-off' of ten per cent MgO all samples are comprised
dominantly of serpentine. The samples with greater than 30 pcr
cent Fe can be considered limonite. The remainder of the
population below these two values is assigned to the nontronite
lithology. This discrimination is specific to the three operational
pit areas currently being mined at the Bulong Nickel Operation.
Different MgO and Fe paramcters are used in other resource
areas to delineate the ferricrete, clays (transported or in situ) and
talc units from the three primary ore lithologies.
The simplification of lithology is necessary in both the mining
and resource modelling phases. Situations exist where the
individual collecting the geological information may not be the
same person responsible lor the modelling of the data.
Understanding the mineralogical complexities away from the
field and being able to make informed decisions about
mineralogical changes needs to be consistent and modestly
accurate. This approach is to ensure the performance of the ore
teed through the processing phases in the plant is maintained at
an optimum.
An untortunatc function of this approach is that sub-ordinate
mineralogies are ignored, even though they contribute to the
sample intervals hulk chemistry. At thc mining scale. largc
relative diffcrcnces in elements are important, sincc they
contribute directly to our understanding of the deposit.
Without accounting for changcs in chemistry, potential
problems can arise in scheduling of both the identified resource
and the stockpile destined for processing.
5 - Geology created by and MgO F r c e n t s from grade control data
Criterion Pit, 370 RL.
At Rulong because of the variation in the individual deposit
mineralogy, the step towards using chemistry as a constraint
against mineralogy has proven to be an important ore control
tool. I t removes some of the variation associated with
subjectivity in geological logging encountered by geologists
during ore delineation and contributes to consistency and
confidence in the identification of important mineralogies.
REFERENCES
Burger, P A, 1996. Origins and characteristics of bteritic Nickel
Deposits. in Proceedings Nickel '96. pp 179 - 183 (The Australasian
Institute of Mining and Metallurgy: Melbourne).
Elias. M, Donaldson. M J , and Giorgetta. N, 1981. Geology, Mineralogy
and Chemistry of bteritic Nickel-Cobalt Deposits near Kalgoorlie.
Western Australia. Economic Geology, 76: 1775-1783.
Parianos, J M and Rivers, C 1, 1996. Geology and Mineralogy of the
Brolga Laterite Deposit Central Queensland. in ProceedinRs Nickel
'96, pp 63 - 68 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Twidale, C R. 1976. Geomorpholo~y,136 p (Thomas Nelson: Australia).

244 Coolum. Old. 14 - 17 May 2000 4 t h lntemallonal Mining Geology Conference

Mine to Mill
Ore Characterisation for Mine to Mill Fragmentation
A Scott’, J Segui2 and S Kanchibotla3
ABSTRACT
The ‘Mine to Mill’ concept is not new. In fact, it is the underlying
objective of every mine. Unfortunately, in many operations the
management structure and reporting systems have created independent
‘businesses’ within the overall mining enterprise. This has created
incentives to optimise the performance of each component of the
operation rather than the enterprise as a whole. The Mine to Mill
Conference organised by The AusIMM in October 1998 documented a
number of case studies where run of mine ore was not presented to the
mill in the best possible form for subsequent stages of comminution and
processing. A number of examples were quoted where modest
expenditure in the mine had a very significant impact on downstream
process efficiency and hence costs.
Examples included:
the miniinisation of fines in the mining and handling of iron ore;
the management of fines in blasting and crushing for a copper heap
leach operation;
the control of blast damage, mining recovery and dilution in open cut
coal operations; and
the optimisation of mine fragmentation to increase mill throughput
in gold and copper operations.
The latter topic has been trided at a number of mines and is referred to
as ‘Mine to Mill’ fragmentation.
A number of ‘Mine to Mill’ type investigations have been reported in
the literature including Pease el ul, Simkus and Dance, Nielsen, Scott et
til, Kojovic et (11, Kanchibotla et cil, Bulow et (11 and Hawkes from the
1998 Mine to Mill Conference. In addition, a number of studies are in
progress or the results have yet to be published. These studies have
dcinonstrated the feasibility of obtaining the data required lo characterise
the breakage behaviour of ores and to model the impact of changes to
blasting practices on process efficiency.
Characterising the breakage behaviour of ores is a vital step in the
inanagemenr of fragmentation and comminution in mines. The
characteristics of importance to fragmentation fall outside the parameters
conventionally required to describe the economic geology of a deposit
‘Mine to Mill’ optimisation of fragmentation means that the mining
engineer needs information from the geologist in order to be able to help
the metallurgist. Providing this information requires close interaction
between these groups.
‘MINE TO MILL’ OPTIMISATION OF
FRAGMENTATION
In classic metalliferous operations the ore undergoes at least
three stages of breakage:
blasting to prepare the ore for excavation and transport;
crushing to improve its handling characteristics and to
prepare the ore for grinding; and
grinding which is usually undertaken in two stages.
In large open pit mines, ‘rule of thumb’ figures suggest the
relationship between the energy requirements and costs for these
three stages of breakage are as shown on Table 1.
In the last 20 years grinding circuit design has undergone
considerable change and has seen the rise in popularity of
autogenous (AG) and semi-autogenous (SAG) mills to the point
I FAuslMM, Scott Mine Consulting Services Pty Ltd. 45a Edson
Street. Kenmore Qld 4069.
2. SAuslMM. Research Scholar. JKMRC. Isles Road. Indooroopilly,
Qld 4062.
3. Research Fellow. JKMRC. Isles Road. Indooroopilly,Qld 4062
4th International Mining Geology Conference Coolum. Qld, 14 17 May 2000
~ 247
TABLE 1
Relative energy and cost of breakage.
actor-
L- 1
-1~- .
tineqgJ - cost Fa?!?
.-;
Blasting
!Crushing
,Grinding
-
0.2 kwhlt
Zkwhlt
20 kwhlt
1
~ 1
IO
loo
1
-1
~
$0.154
$0.75/1
$3.75/1
1-
:
-- 5
25
i
...
,
where it is rare to find a comminution circuit where they are not
used. This trend has enabled unit throughput size to increase
enormously, with consequent economies of scale. The downside
of these machines is that they are relatively sensitive to the size
distribution of the feed, particularly AG mills. This is because
the feed provides the media responsible for grinding as well as
providing the feedstock that is ground.
The feed size distribution has to provide a balance between
the amount and size of the media (coarse fraction) and the
feedstock (fine fraction). Of course the rock media as it wears in
the mill also provides a source of ground product in its own right,
but this is a relatively slow process and so coarser rocks tend to
accumulate in the mill. Hence if a feed size distribution is
produced with too much coarse material or very large top size,
the mill will tend to overfill with pebble size rocks (25 mm -
75 mm) and limit throughput. If too little coarse material is fed
there will be insufficient grinding media to grind the feedstock to
the required size.
In both scenarios pebble sized material is found to be a
problem and this fraction is often referred to as the ‘critical size’.
Hence it is also found that feeding a size distribution which is
rich in pebbles will also limit throughput. It follows from these
experiences that the ideal feed size distribution is one which has
relatively little pebble size material, does not have excessive
coarse material and has as much material in the below-grate size
region (IO mm - 15 mm) as possible.
The ‘Mine to Mill’ concept involves increasing the amount of
breakage achieved in both blasting and crushing in order to
relieve the mill of as much new breakage as possible. In essence
the breakage is moved back down the production chain where the
energy requirements (and the costs) are lower. Figure 1 shows the
concept.
The first objective of ‘Mine to Mill’ blasting is to reduce the
top size of the material to improve the ease of excavation and
transport within the mine. Reduced top size also allows the
primary crusher gap to be reduced, generating material which
needs less breakage in the mill. With reduced top size and
continuous material supply, the crusher can be choke fed without
the risk of blockages. Choke feeding allows more inter-particle
breakage and therefore produces more fines in the crusher
product than without choke feeding. The top of the cumulative
fragment size distribution curve shown in Figure 1 is moved to
the left.
The second objective is to increase the proportion of fines
(material less than the grate size in the mill, say 10 mm) because
this should pass freely through the mill and require no further
breakage. This is represented by lifting the lower end of the size
distribution curve. These changes steepen the curve, reducing the
proportion of material in the ‘critical’ size range of around
25 mm to 75 mm.
 I A SCOTT, J SEGUl and S KANCHIBOTLA
100%
-F m The physical characteristics of ores are generally given less
f 2- Reduce l o p Site
0 z:
40% - IncnmmFinn
3 30%-
2
3
20%-
10%-
0%
t . _7 -
1 10 100
-
Fragment She mm
Fi(i I -Changes in size distribution sought through blasting.
The impact of these changes can be simply evaluated. If the
additional blasting cost was $0. IO/t and mill throughput
increased by ten per cent, then according to the figures on Table
I , the average milling cost would fall by $0.38, or four times the
extra investment made in the blast. Of course this simple
approach ignores many factors including likely benefits to the
mining operation itself from higher excavation productivity,
higher availability and reduced maintenance costs for equipment.
I f the increased revenue generated from additional sales made
possible by the higher production rate is factored into the
equation, the rewards can become very significant.
CHARACTERISATION OF ORES
Ores are conventionally characterised in three ways prior to
mining. These are:
economic characterisation,
mineralogical characterisation, and
physical characterisation.
Economic characterisation
Clearly the most fundamental aspect of orebody characterisation
is whether the material is in fact ore. This is an economic
definition. The amount of potentially valuable minerals and their
distribution within the rock mass are the basic driver for the
definition of the orebody. Of course the net value of the ore
(value less costs) also depends on the costs associated with
mining, transport and processing. These costs depend on the
characteristics of the orebody and so a cyclic process of
evaluation is required where initial estimates of mine geometry,
blasting, excavation, haulage, comminution and processing
performance are made to provide a first pass definition of the
orebody. Subsequent planning cycles refine each of these
estimates to converge on the ‘bankable’ mine plan. Optimising
I this plan depends strongly on the adequacy of the mineralogical
and physical characterisation of the ore.
l unconfined compressive strength, Young’s modulus and a
Mineralogical characterisation
The nature of the minerals present and their association with
each other control the ease with which the desired minerals can
be separated from the gangue. Clearly, liberation verses particle
size and the presence and influence of contaminants on the final
product are key factors. Texture is now being quantified to relate
readily observable features of mineral specimens to their
mineralogy and potential processing performance (Napier-Munn
et al, 1996). Great strides have been made in recent years in the
application of tools such as QEM-SEM and the JKMRC’s
Mineral Liberation Analyser in the routine quantification of
mineral composition and character (Gu et al, 1998).
Coolurn. Qld. 14 - 17 May 2000
Physical characterisation
attention by mine geologists than the economic or mineralogical
aspects. It is the physical characteristics that arc the ‘missing
links’ in the mine to mill chain. Most mine geology groups will
keep records of significant structures in core and log matcrial
against a nominal hardness or strength scale (Berknan and liyall,
1976)
The core may be separately logged or re-sampled lor
geotechnical purposes where a more careful look at structure and
lo00
sampling of material for basic strength testing may be
undertaken. Indices of rock mass competence such as RMK and
Q (Bieniawski, 1973; Barton, Lien and Lundc, 1974) are often
calculated and reported.
Breakage behaviour is commonly estimated in the form of the
Bond Index (Bond, 1952) which is a measure of the amount of
work (expressed in kWhr/t) required to reduce matcrial to 80 per
cent passing 100 microns. The Bond Index is obtained from
controlled breakage tests and is the major parameter used by
most comminution equipment manufacturers.
CHARACTERISTICS THAT AFFECT
FRAGMENTATION
Importance
Treating blasting as the first stage of the comminution process
and managing that process to optimise the overall economics of
an enterprise requires an understanding of
the ‘blastability’ of the in situ ore;
the impact of blast fragmentation on the efficiency and cost
of mining and transport;
the crushing and grinding behaviour of the ore; and
the impact of feed size distribution on the performance of
crushing and grinding circuits.
The management of this process requires adequate:
characterisation of the in silu ore;
measurement of run of mine and post crusher fragment size
distributions; and
monitoring of mining, crushing and milling performance and
efficiency.
Of these, the mine geologist can contribute significantly to the
characterisation of the ‘blastability’ of the ore.
‘Blastability’
Rock is a complex material and its behaviour when blasted is
indescribably complicated. A review of approaches to rock mass
characterisation for blasting is provided in Scott et ul (1996).
There is still much to be learned about the most effective
technical approaches to rock mass characterisation for blasting.
Approaches used to-date generally utilise data available from
geotechnical characterisation. This involves parameters such as
description of structure either estimated from field exposures or
derived from RQD or other indices derived from logging core.
Blasting involves both the creation of new fractures and the
extension of existing cracks and joints to loosen and liberate in
situ blocks within the rock mass structure. The fine end of the
fragment size distribution curve is controlled by the substance
strength and the breakage energy provided by the explosive. The
coarse end of the size distribution curve is strongly influenced by
the in situ block size and the spatial distribution of explosive
within the rock mass. Muckpile movement is influenced by the
rock density and stiffness, the heave energy and distribution of
the explosive. The minimum description of rock mass
‘blastability’ therefore involves:
4th international Mining Geology Conference
 ORE CHAKACTERISATION FOR MINE TO MILL FRAGMENTATION

density, Liberation of fines

strength,
stiffness, and
in sirit block size.
Armed with a reasonable description of these properties,
alternative blast designs can be modelled to predict
fragmentation and muckpile shape. This allows mining
performance (and hence costs) to be predicted and provides an
estimate of the feed size distribution for downstream crushing
and milling operations.
Density
The measurement of the density of low porosity materials is
relatively straight forward and is generally accomplished by
measuring the weight of a sample in air and while immersed in a
liquid of known density. Porous materials such as coal offer
some complications as described by Preston and Sanders (1992).
Strength
Blasting is a dynamic process and it is reasonable to assume that
some measure of the dynamic strength of the rock is required in
fragmentation modelling. However, to the authors’ knowledge no
fundamental or mechanistic model of blast fragmentation has
been successfully scaled up to production blast geometries to
provide practical guidance to blasting operations (Scott et al,
1993). The most successful blast fragmentation models are
basically empirical, although the most useful mine to mill models
(Kanchibotla, 1998; Djordjevic, 1999) do utilise some
mechanistic components, particularly in the estimation of the
fines end of the distribution. Empirical models can satisfactorily
utilise static strength parameters which are far easier to measure
and more likely to be available from conventional geotechnical
investigations.
The most commonly reported strength parameter is unconfined
compressive strength which requires measurement in the
laboratory using carefully prepared samples. The test is sub.ject
to an international standard procedure (Brown, 1981) and has the
benefit of providing both stiffness (Young’s modulus) and a
deformation parameter (Poisson’s ratio) at the same time. Intact
core makes an ideal source of specimens for determining
unconfined compressive strength.
The point load strength (Brook, 1985) provides a very
convenient estimate of compressive strength from either core or
hand samples from the field. A sample is broken between two
conical platens and the failure load recorded. The load at failure
is normalised to represent an equivalent SO mm diameter
specimen. The unconlined compressive strength can be estimated
from the point load strength provided a statistically significant
number of point load tests have been undertaken.
Tensile strength can be conveniently measured by the Brazilian
Test in which a disc of core is loaded diametrically between two
platens. The specimen actually fails in tension induced normal to
the axis of the applied load so the failure load can be related to
an estimate of the tensile strength through the geometry of the
sample.
When rock is broken, fine material may be liberated from the
new surface that has been created through the rock matrix. This
material might be fine clay particles resident within the rock
structure or particles resulting from the abrasion of the new
surface by other rocks. Particles from both sources are found to
be in addition to the daughter particles expected to result from
the crushing or breakage of the rock by blasting, crushing or
milling.
The Dean David Index (Scott er d,1998) is a parameter used
to describe the liberation of fines when a rock is broken. The
index is a measure of the proportion of the material presenting as
-38 microns when the ore is broken in a laboratory crusher.
While not relevant to conventional indicators of blasting
performance such as the appearance of a muckpile or its
excavation characteristics, the proportion of this very fine
material can be significant to milling or leaching performance.
The index is determined by passing hand samples of the ore
through a laboratory crusher and plotting the proportion of -38
micron material against the new surface area created by crushing.
The new surface area is estimated by sieving the initial samples
and the crushed product and approximating the fragments as
spheres. The resulting index is then used to estimate the
proportion of material liberated as tines during blasting or
comminution.
In situ block size
In any rock mass the rock substance may be disrupted by a
number of types of discontinuities. These may range from faults,
joints, bedding planes and foliation to more subtle healed
structures or micro-fractures. In terms of blasting, these
micro-structures are important because they provide distinct
planes of weakness which assist the generation of blast
fragments.
Structures within a rock mass are generally not continuous but
do tend to occur in geometric patterns or sets which share
common characteristics such as orientation and spacing. While
not always intersecting to form free blocks within the rock mass,
inspection of muckpiles generally reveals a large number of
blocks (usually the larger fragments in the muckpile) that are
bound by joints on several sides. Blasting extends the existing
discontinuities to complete the definition of these blocks which
are then freed by the movement of the blast volume to form the
muckpile (Figure 2). The coarse end of the fragment size
distribution is strongly influenced by the size of these in siru
blocks.

Stiffness
The empirical nature of the fragmentation models allows them to
be tuned to use a static value for stiffness rather than the
notionally more correct dynamic value. The most common
description of stiffness is Young’s modulus which is derived
from a suitably instrumented unconfined compressive strength
test.
Values for the dynamic Young’s modulus can be derived from
Fici 2 - ‘ I n siru’ blocks in a mine bench.
measurements of the sonic properties of a suitable rock sample.

4th International Mining Geology Conference Coolurn. Old. 14 - 1 7 May 2000 249
A SCOIT, J SEGUI and S KANCHIBOTLA

In the literature (Harries, 1999) there are a number of models

that attempt to simulate the size and shape of the in siru blocks
and their corresponding distributions based on discontinuity data
collected using detailed line or window mapping methods. These
models include JOINTS (Villaescusa, 1991). SIMRLOCK
(Peaker, 1990) and STEREOHLOCK (Hadjigeorgiou er d,1995)
and those being developed in the JKMRC-ltasca International
Caving Study (Harries and Eadie, 1999). All require data
describing joint spacing and orientation. These data can only be
obtained from detailed mapping and are seldom available
throughout an orebody yet to be mined.
Simpler approaches (Palmstrom, 199.5; White, 1977) can be
used effectively if representative fracture frequency data are
available. To be effective the data must satisfy two criteria:
I. the data must be from corcd holes or exposures at
sufficiently close spacing and an appropriate range of
orientations to provide a relatively unbiased sample of the
rock mass structures in the volume of interest; and
F I 4~- Micro-fractures in intact core.
2. all fractures that affect blasting performance must be
included in the logging.
The second point is vital. Geotechnical engineers concerned
with the failure of a slope are inclined to ignore structures that
cannot contribute to the failure of that slope. Engineers CHARACTERISTICS THAT AFFECT
concerned with the stability of a development drive are only CRUSHING AND GRINDING
concerned with the structures that affect the stability or Standard rock mechanics tests such as uniaxial compressive
reinforcement requirements of that drive. Blasting is affected by strength and fracture toughness are not appropriate to describe
all structures, large and small. Anything that provides a plane of comminution behaviour on their own. The product size
weakness through the rock mass might be exploited by the blast distribution and energy required to generate that size are
fracture mechanisms to form fragments. However, it is common important descriptions of the comminution process and are not
for material logged for geotechnical (stability) purposes to available from these tests. Laboratory tests to evaluate
overlook the smaller and more common of these discontinuities. comminution behaviour are designed to establish a relationship
Figure 3 shows an example of healed structures affecting between the energy input and size reduction achieved. Such tests
blasting results. The core in Figure 3 is relatively broken, but include Bond tests, batch grinding and single particle tests. Of
stick lengths and hence block sizes of greater than 300 mm are these, the JKMRC utilises the results of a particular single
readily seen. The muckpile from this material contained no particle test, the drop weight test, in its models of crushing and
fragments greater than 100 mm which was quite an anomalous grinding.
result for the mine. Close inspection of the core from this area To characterise ore breakage at different energy levels, the
(Figure 4) shows that even the intact lengths of core contained JKMRC method uses two complimentary techniques:
many planes of weakness that had not yet fractured, but would to characterise breakage at moderate to high energy levels (ie
take little explosive energy to break. These ‘micro-fractures’
impact breakage), a drop weight device is used; and
were the controlling influence in blasting performance in this
material, but were not logged or noted in the conventional to characterise breakage at low energy inputs (ie the abrasion
geotechnical appraisal of the core. component of breakage), a tumbling test is used.

FIG3 - Core with some significant intact lengths.

250 Coolurn, Old, 14 - 17 May ZOO0 4th International Mining Geology Conference
 ORE CHARACTERISATION FOR MINE TO MILL FRAGMENTATION
The drop weight device comprises a steel drop-weight which is
raised by a winch to a known height. A pneumatic switch
releases the drop weight which falls under gravity and impacts
the rock particle which is placed on a steel anvil. The device is
enclosed in perspex and incorporates a variety of features to
ensure operator safety. By varying the height at which the
drop-weight is released and the mass of the weight, a wide
ranges of energies can be applied to break the target rocks. After
several tests at a given particle size and energy level, the rock
fragments are then collected and sieved. Figure 5 shows the
device in use.
Fic, S - JKMRC Drop Weight Tester
The size distribution of the resulting fragments is normalised
with respect to the original particle size. The percentage of
material by weight passing one tenth of the original particle size
is taken as an indicative parameter and referred to as 110. The 110
values are related to the energy input during the test, bS, using
the relationship:
The JKMKC also uses a standard abrasion test to describe the
low energy degradation of an ore. The correlation parameters, A
and b, (from the drop weight test) and ta (from the abrasion test)
arc then used by thc JKSimMet comminution models to describe
the ore specific breakage properties. In using these models data
are required to describe the machine specific aspects of their
operation.
4th International Mining Geology Conference Coolurn, Qld. 14 - 17 May1 2000
Recent work (Napier-Munn et al, 1996) has identified useful
correlations between some geornechanics properties and
comminution behaviour. Examples include relationships between
fracture toughness and crushing performance and point load
strength and ‘grinding hardness’. Further work may improve
these correlations allowing indicative data to be gathered from a
greater number of samples. This should reduce errors associated
with representing large volumes of material with just one or two
laboratory tests.
REMOTE CHARACTERISATION OF
FRAGMENTATION PROPERTIES
Existing access to data
The first task in routinely characterising mine to mill
fragmentation properties is to add to the observations currently
made during exploration and routine proving work by mine
geologists. This would involve:
detailed fracture mapping of available drill core and face
exposures;
sampling and testing of ores for strength and breakage
properties; and
defining blasting domains to guide short-term planning and
blast engineering staff.
While this undoubtedly represents additional work, it provides
the data required to engineer blasts to meet the ‘mine to mill’
requirements of the operation. However, exploration drill hole
spacing is determined based on the economic delineation of the
orebody, not the physical characteristics. It is possible that
exploration drilling alone will not provide an adequate definition
of the physical characteristics of the ore.
It would be ideal to be able to remotely sense parameters of
importance to the characterisation of breakage. There is
significant potential to utilisc information from the drilling of
blast holes and from geophysical surveys to enhance the data
available from physical samples of the target material.
Data from blast holes
The most detailed possible data regarding the characteristics of
an area to be blasted can be obtained from blast hole drilling.
This has the advantage of being an evenly distributed sample
through the blast volume and the disadvantage of becoming
available too late to affect the design of the blast hole pattern.
Nevertheless, the amount and type of explosive used and the
detailed initiation pattern for the blast can still be changed to suit
the properties of the ore defined to lie within the blast volume.
The drilling rate is an obvious parameter to indicate the
relative hardness of the ground to be blasted. While providing an
indication of relative hardness, the rate of penetration is affected
by many machine and operator dependent factors that render the
results loosely qualitative at best. Again, taking a lead from the
oil industry where the very large investment in each hole makes
it imperative to maximise the value of the information gathered,
considerable work has been done on monitoring and interpreting
information available from drilling data while the hole is being
drilled.
The application of detailed drill monitoring and the
interpretation of material properties from drill performance
advanced considerably during the 1990s (Peck and Pollit, 1995).
Further sophistication has been added by increasing the data
processing power on-board the machine and using sophisticated
pattern recognition systems to provide ‘real-time’ advice and
information to the drill operator. Explosive charging details can
then be modified to suit the local geology (and its variation)
provided the relationship between blast design, run of mine size
and comminution performance is adequately understood.
251
A SCOTT, J SEGUI and S KANCHIBOTLA
Research is being conducted at the JKMRC (Segui, 1999) to
identify the intensity and character of rock mass structure. rock
substance strength and likely comminution properties from
drilling data. Figure 6 shows the concept.
It is recognised that vibration is generally developed in a drill
rig when the bit encounters a region of intense fracturing. It
should be possible to relate the nature and intensity of fracturing
to the dynamic response of the drill. Future research will address
the utilisation of information gathered from the attenuation of the
vibrations generated in the rock as drilling proceeds.
Data from geophysics
Kemote geophysics has played a major role in minerals
exploration for many years. Gravity, magnetic and seismic
techniques have been responsible for the targeting of otherwise
hidden resources for proving using conventional drilling.
Near-field techniques such as natural gamma, focussed electric
resistivity, magnetic susceptibility, gamma-gamma and sonic
velocity logs have been successfully used to delineate and
characterise strata in the oil, gas and coal industries for many
years and are now finding application in the hard rock minerals
industry for mineral identification and grade estimation.
Work on the identification of minerals and evaluation of grade
falls under the banner economic geology and most development
effort has been applied in this area. Sophisticatcd tools such as
automatic strata identification through the statistical analysis of
multi-parameter logs are becoming available for routine
industrial use. (Schepers, 1996).
Blastability
Index
I acquisition I
FIG6 - Mine to Mill data capture being studied by the JKMRC (Segui, 1999).
252 Coolurn. Old, 14 - 17 May 2000
Geophysical techniques such as radar, seismics and radio
tomography are finding increasing application in on-going mine
development work, particularly in the definition of structure.
Wedepohl et u1 (1998) argue that under the right circumstances
these techniques have the potential to provide structural
information to assist medium- and short-term planning, but that
no single tool can achieve this under all conditions.
Wedepohl er ul suggest that electromagnetic techniques are
typically applied over metres to tens of metres and have mapping
accuracies of centimetres to metres. Seismic techniques are
typically applied over tens of metres to hundreds of metres and
have a mapping accuracy in the order of metres. Electromagnetic
techniques depend on the rock mass having suitable electrical
properties, and seismic techniques are not effective in noisy
environments or highly structured ground.
Each technique will only map a feature that is associated with
a change in the relevant physical property. This usually means
that as associated physical property is mapped rather than the
geological feature itself. For instance. radar provides a reflection
image depicting boundaries associated with changes in radio
wave velocity which is controlled by the dielectric constant and
radio imaging depicts changes in electrical resistivity.
Problems of logistics and access and the need for
interpretation currently limit the routine application of these
techniques in mines. A satisfactory solution must be found in
each application for the inevitable trade-off between range and
resolution. It is therefore likely that structural information of
relevance to stability issues will be available before the more
detailed information necessary to describe blasting behaviour can
be routinely obtained using these tools.
/ Comminution\
Index
4th International Mining Geology Conference
 ORE CHARACTERISATION FOR MINE TO MILL FRAGMENTATION
Seisrnics appear to o t k r the greatest potential contribution for
the delinition of structure relevant to blasting. Seismics can be
used t o depict boundarics associated with changes in acoustic
impedance (density x velocity). Seismic reflection surveys have
been successfully used to delineate suitable structure free blocks
for long wall mining of coal (Poole et a / , 1998). Shear waves are
polarised by alligned structures and can be used to infer
alignment and fracture intensity (Urosevic and Hatherly, 1998).
Micro-seismics are now making important routine contributions
to monitoring seismic events and release of stress in deep mines.
Changes in rock mass condition through blast damage was
studied by Adamson ( I 992) using the cross-hole seismic
technique. The technique was successfully applied to quantifying
an increase in fracture frequency over time resulting from
near-by blasting operations. Howevcr, the target volume was
small and the experimental set-up was cumbersome rendering the
approach impractical for routine application. Because the
presence of a discontinuity in the rock substance will tend to
attenuate a seismic wave, it seems reasonable that the attenuation
of seismic signals offers the best prospects for quantifying
structures of relevance to blasting. Further research is warranted
in these areas.
CONCLUSIONS
The breakagc behaviour of ores controls the cost of mining and
comminution. This is a very significant component of the overall
cost of production from most mines. It is now possible to
quantify the physical characteristics that control breakage
behaviour and use this information to manage fragmentation
from 'Mine to Mill', This provides the opportunity for each stage
of the production process to be managed to benefit the overall
enterprise, not just to optimise individual 'cost centres'.
REFERENCES
Adanison. W K. 1992. Application of the Cross Hole Scsimic Technique
to the Quantitative Assessment of In-Situ Rock Structure. PhD
Thesis, University of Queensland.
The Australasian Institute of Mining and Metallurgy, 1998. Proceedings
Mine IO Mill 1998 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
The Australasian Institute of Mining and Metallurgy, 1976. Field
Geo1o~yi.yr.v'Muniiul. (Ed: I> A Berknian) (The Australasian Institute
of Mining and Metallurgy: Melbourne).
l3arton. Lien and Lundc, 1974. Engineering Classification of Rock
Masses for the Design of Tunnel Support. Rock Mechanics, Vol 6,
N o 4.
Rieniawski. Z T, 1974. Engineering Classification of Jointed Rock
Masses, Truiis S A/ricun lnsr Cilil Engineers, 15:335-344
Bond, F C, 1952. The Third Theory of Comminution. 7mn.s SMWAIME,
193:484-494.
Brook, N, 198.5. The Equivalent Core Diameter Method of Size and
Shapc Correction in Point Load Testing. 1nf J Rock Mech Min S c r
rrnd Geomech Abrrc 22(2):6 1-70,
Brown. E T. 198 I . Suggested Methods for Kock Characterisation,Testing
and Monitoring (International Society for Kock Mechanics).
Djordjevic, N, 1999. A Two-Coniponent Model of Blast Fragmentation,
The AitslMM Proc~eedinp.RW(2):9-IS (The Australasian Institute of
Mining and Metallurgy: Melbourne).
4th International Mining Geology Conference Coolurn. Old, 14 - 17 May 2000
Gu, et (11, 1998. Measuring and Modelling Mineral Liberation with the
JKMKCPhilips MLA, in Proceedings Mineruls Processing '98.
Cape Town RSA.
Hadjigeorgiou, er ul. 1995. Characterising In-Situ Block Size
Distribution Using a Stereological Model, Cunudicrn Tunnelling
Journal, pp 210-21 I .
Harries, N, 1999. Estimation of In-Situ Block Size for Mine to Mill
Optimisation , Report to BHP Cannington Mine, December 1999.
Harries, N and Eadie, 1999. A Model to Predict Primary Fragmentation.
Report submitted to the International Caving Study, JKMRC. May
1999.
Kanchibotla, S, 1998. Importance of Mine Fragmentation on
Downstram Operations. in Proceedings Blrrsr 98, IIR Conference.
Napier-Munn, er (11. 1996. Mirrerul Comminurion Circuirs-Their
Operurion und Oprimisurion, JKMRC Monograph No 2, University
of Queensland.
Palmstrom. 1995. RMi - A Kock Mass Characterisation System for Rock
Engineering Purposes, PhD Thesis, University of Oslo.
Peakcr, S M, 1990. Development of a Simple Block Size Distribution for
the Classification of Kock Masses, MA Sc Thesis, University of
Toronto.
Peck and Pollit, 1995. Lithological Recognition Based on Rotary Blast
Hole Drill Performance Monitoring, in Pmceedings (?fAdvunces in
Eyuipmenr Performince Monitoring, Montreal. pp 59-7 1 ,
Poole, et (11, 1998. Development of 2DE and 3D Seismic Methods for
Coal Mine Planning, in Proceedings I988 Ausrruliun Mining
Technology Conference, Fremantle.
Preston and Sanders. 1992. Calculating Reserves - A Matter of Some
Gravity. 261h Newcastle Symposium on the Advunces in rhe Srudy of
rhe Sydney Basin, Newcastle. April.
Segui. J L B, 1999. Kock Mass Characterisation for Mine to Mill
Optimisation. PhD Progress Report, Dept of Mining. Materials and
Metallurgical Engineering. University of Queensland.
Scheprs, R, 1996. Application of Borehole Lugging to Geotechnical
Exploration, HANWHA Symposium. Seoul, Korea, October 1996.
Scott, er ul, 1993. The Challenge of the Prediction and Control of
Fragmentation in Mining. 4rh Inrernutional Symposium on Rock
Frugmenrurion b y Rluiiing. Vienna, July 1993.
Scott. et ul. 1996. Open f i r Blusr Design - Anulysis und Opfimisurion,
JKMRC Monograph No I . JKMRC Australia.
Scott, A, 1996. Blastability and Blast Design. in Proceedin:~.sof I,i/rh
Inlernurional Symposium on Rock Fra~menrarion by Blusring.
Montreal, August pp 27-36.
Scott. A. David. D, Alvarez, 0 and Veloso. L, 1998. Managing Fines
Generation in the Blasting and Crushing Operations at Cerro
Colorado Mine, in Proceedings Mine IO Mill 1998, pp 141-148 (The
Australasian Institute of Mining and Metallurgy: Melbourne),
Urosevic and Hatherly, 1998. Analysis of Fracture Intensity and
Direction from Surface Seismic Surveys, in Proceedings 1988
Ausrrulian Mining Technology Conference, Fremantle.
Villaescusa. E C. 1991. A 3-D Model of Rock Jointing, PhD Thesis,
University of Queensland.
Wedepohl, er ul, 1998. A Geophysical Toolbox for Deep Level Gold
Mining in South Africa. in Proceedings 1988 Ausrruliun Mining
Technology Conference, Fremantle.
White, D, 1977. Predicting Fragmentation Characteristics of a Block
Caving Orebody, MSc Thesis, University of Arizona.
253
254 Coolurn. Qld. 14 - 17 May 2000 4th International Mining Geology Conforence
Upgrade Ability and Geology of Cawse Nickel Ore
S M Denn', C G Ferguson2 and S L Makin3

INTRODUCTION
TABLE 1
The Cawse nickel project is a new generation pressure acid leach
(PAL), solvent extraction and electrowinning process used to DeJinition of upgrade [enninology.
produce LME grade nickel metal and cobalt sulphide concentrate . . . _-_
containing 40 per cent cobalt by treating nickel and cobalt oxide Definition .

ores from a lateritic ultramafic profile. The project is located SO ..

.. . :
kilometres NW of Kalgoorlie in Western Australia. Mass passing I x I lo mass of material passing to the leach ~

I
The commercial succcss of the Cawse nickel operation is . .~ I . . ~circuit.. -- .

--
dependent in part upon the ability of the principal ore type to be Feedgrade I f Elemental grade of material passing to
1 the leach feed.
~

beneficiated. A simple process of rejecting lower grade material ~. .

on the basis of particle size achieves this. The process is called I

Upgrade Y The percent increase or decrease in'the !

upgrading and allows subgrade material to become commercial
ore grade and also allows higher ore grades to be processed in i
1 elemental concentration in the mass
passing compared to the head grade. j
I
the early parts of the operation. The success of the upgrade
process is dependent upon the physical and chemical properties Reject grade Elemental gmde of the reject stream. I
of the ore being processed and the nickel grade of the ore. Reject mass Mass of the material in the reject I

I
~

The upgrade ore type represents >80 per cent of the Cawse I A
I ,&
!..:?
!! .
I
nickel resource and is hosted mostly within a limonite unit. - . ..I
represented by goethitic clays in the upper saprolite zone.
Recovery
II R '
Amount of element recovered to the
leach feed compared to the original as
I

I n the upgrade processing circuit the ore is crushed and
slurried. I t is then passed over a series of screens that remove all
material over 0.5 mm. This ensures that coarse material is
removed from the main ore stream. Upgrade is reliant on
selectively rejecting lower grade or barren material, which can
include silica, magnesite and relict saprock.
To predict leach feedgrade, the grade control estimates the
head grade and upgrade percentage for all ore delivered to the
run of mine ore pad. To do this reverse circulation (RC) drill
holes are logged for ore type. assayed for a range of elements
and undergo simulated upgrade testwork.
The percentage and grade of material rejected through the
upgrade circuit has the most influence on upgrade per cent. This
reject is determined by the physical properties of the rock mass
and drum scrubber parameters. The correlation between nickel
upgrade and reject can be established to predict upgrade from the
known mass reject.
Parcels of upgrade ore milled to date closely follow projected
correlation trends. Upgrade circuit results have been excellent,
with average nickel grades upgrading by 34 per cent. cobalt by
23 per cent, with SS per cent mass passing.
UPGRADE DEFINITIONS
Upgrade is possible due to the heterogeneity of nickel content
between the coarse and fine fractions of the mined material. The
following mass balance equation applies:
NiwnedX MaSSMlned = NiReJected x MaSSRqected +
NiAu[ociavefeed x MaSSAutoclave feed
The terms used in this paper to deline the upgrade are defined
in Table 1. Upgrade is measured as the ratio of autoclave
feedgrade to mined grade.
~~
II i - I a per cent.
Material at Cawse falls into and is mined in three categories:
upgrade, grind and non-upgrade. The upgrade category is ore
with grade heterogeneity between coarse and fine material. The
upgrade ore is processed by progressively removing the less
mineralised coarser fractions. Non-upgrade ore is defined as ore
that does not upgrade under the current process, such as smectite
rich ores. Grind material is ore that requires pulverisation
through a separate crushing circuit prior to the autoclave leaching
process in order to economically recover the nickel and cobalt.
This ore type is essentially a hard, manganese-rich coarse
fraction.
LOCAL GEOLOGY
The Cawse mine geology is summarised in the following
paragraphs with emphasis on the key geological aspects related
to the upgrade characteristics. The Cawse geology is discussed in
detail by Bywater and Denn (2000) and also by Brand. Butt and
Hellsten (1996) and Hellsten. Lewis and Denn (1997).
Four main types of mineralisation have been identified at
Cawse. These are the oxide ores of limonite, talc, and siliceous
cobalt and the smectite-saprolite ore (locally termed nontronite).
The identification of these ore types. their grade ranges and
physical characteristics proved crucial in the subsequent
metallurgical sampling due to their differing metallurgical
properties.
Limonite mineralisation comprises approximately 75 per cent
of the global resource. Limonitic clays with variable proportions
of vuggy, goethitic silica typically contain grades of 0.4 per cent
to 1 . S per cent nickel. Nickel grade decreases as the proportion of
silica increases. Cobalt content is between 0.01 per cent and

0.3 per cent at which point manganese staining of the silica

I. MAuslMM. Chief Geologist, Cnwse Nickel Operations, Centaur occurs. The ore type is upgradeable by screening out the coarse
Mining and Exploration. PMR 32. Kalgoorlie WA 6433. silica fraction. This ore type comprises the bulk of the upgrade
ore.
2. GAuslMM. Mine Geologist, Cawse Nickel Operations, Centaur
Mining and Exploration. PMB 32. Kalgoorlie WA 6433. Siliceous cobalt (SICO) mineralisation comprises
approximately five per cent of measured resources. It occurs as
3. Mine Geologist. Cawsc Nickel Operations, Centaur Mining and one metre to six metre thick subhorizontal layers in the upper
Exploration. PMH 32. Kalgoorlie WA 6433. 20 metres of the weathering profile. The ore is characterised by

4th International Mining Geology Conference Coolum, Old. 14 - 17 May 2000 255
 S DENN. C FERGUSON and S MAKIN
I dark blue to black siliceous rock with abundant cobalt-rich
manganese oxides such as todorokite, chalcophanite and
cryptomelane, which carry cobalt grades from 0.3 per cent to
1 seven per cent and nickel grades from 0.5 per cent to five per
cent in the rock mass. The ore is not upgradeable due to the
association of nickel and cobalt to manganese, which is then
associated to coarse chalcedonic silica.
Talc mineralisation comprises approximately ten per cent of
the global resource and is located throughout the weathering
profile proximal to penetrating talc-chlorite shear structures. It
typically contains high nickel grades, generally between one per
cent and two per cent and high magnesium levels between eight
per cent and 15 pcr cent.
Iron and nickel enriched smectite clays and saprolite form a
minor constituent of the Cawse mineralisation. They are
generally higher in aluminium (>3 per cent) and also magnesium
(>5 per cent). A minor ore type is alluvial ore which is also
non-upgradeable due to its high aluminium (> 4 per cent).
UPGRADE TESTWORK
Upgrade testing began following recognition of the difference in
grades between coarse and fine materials in samples. Initial
testwork was completed using KC drill chips and diamond core
using screen sizes between ranging between 0.038 mm and
12.5 mm. This sieve work showed that grade increased with
decreasing screen size in most samples tested with optimum
recoveries occurring in a 212 mm screen. Nickel was contained
in the minerals goethite, talc, chlorite and manganese oxides and
removal of coarse chalcedonic silica increased the ore grade.
Further tests using a simulated drum scrubber and samples
from large diameter drill holes (Denn, 1998) were utilised to
confirm the initial testwork. Results supported initial
observations that upgrade increases with decreasing nickel grade.
Testwork also concluded:
wet scrubbing using a rock charge would increase the
amount of fines passing through a scrubber and reduce the
amount of clay balling due to nontronitic clays;
increased scrubbing time reduced clay balling;
gravity separation was an effective way of further upgrading
the fine material; and
overcrushing decreased the upgrade ability of the ore by
pulverising low-grade chalcedonic silica.
UPGRADE PROCESS
The generalised ore process has the ore mined and stockpiled on
the run of mine (ROM) pad area from where it is fed into the
plant via the primary crusher. The ore undergoes crushing, and
washing, to produce a slurry of fine ore particles. The process
then separates the size fractions by screening and cycloning. In
general, the finer the screen size, the higher the upgrade and the
lower the retention of nickel. The optimum split size was
selected as 212 pm, being the best compromise between nickel
recovery and upgrade.
Screening has been selected for removal of material above
0 3 mm. This is considered a practical lower limit, as screening
of finer sizes can lead to operational difficulties, particularly
clogging of the screens and balling of clays.
The ore is fed initially from six fingers on the ore pad (each
finger contains up to 40 000 dry tonnes of ore) into the primary
crusher (where it is sampled to report a crushed head grade) and
then to the main ore bin. The use of ore fingers is used to
facilitate reconciliation from the mine to the mill.
The ore is fed from the main ore bin along the drum scrubber
feed conveyor to the drum scrubber. The ore is sampled from this
conveyor to give the scrubber head grade.
256 Coolurn, Qld. 14
Ore slurry is prepared in a 2250 mm diameter by 370() mm
long drum scrubber. to which the ore feed is controlled by a
weightometer Water addition to the scrubber can be varied or act
as a set ratio to the feedrate. A 25 mm trommel screen on the
scrubber discharge removes the larger oversize rock. This
material passes to the coarse reject stockpile via the coarse reject
belt. Material rejected from the trommel is sampled along this
belt
Slurry passing through the trommel is pumped to a
double-decked vibrating screen in series. The first has an
aperture of 5 mm, the second has an aperture of 0.5 mm to
1.0 mm. The -25 mm to +S mm washed fraction is rejected.
samplcd and sent to the coarse stockpile via the coarse reject
conveyor.
The -5 mm to + I mm screen is situated immediately below the
+S mm screen. The ore is washed and the fine + I mm fraction is
rejected to the fine reject stockpile. By the screen stage, 95 per
cent of the material to be rejected has been removed.
Desliming of the minus 0.5 mm fraction can be effectively
achieved by cycloning, with a cut at approximately 7.5 pm.
Slurry passing through the 0.5 mm screen is pumped to a set of
250 mm cyclones, which remove the slime fraction (less than
75 pm). This fine material is pumped with the ball mill cyclone
overflow through a trash screen to the leach feed thickener.
Testwork showed that gravity separation. with reject of the
heavy split, achieved the best nickel recovery and upgrade from
this fraction. This also provides the added benefit of removing a
large proportion of the chromite from the autoclave feed, thus
reducing the abrasiveness of the slurry.
Slurry underflow from the desliming cyclones is passed
through spirals, which remove material greater than 0.2 mm in
size by gravity separation. This intermediate size fraction, screen
oversize (>0.2 mm 4 5 mm) is dewatered on a low vacuum filter
and conveyed, together with the 0.5 mm screen oversize, to a
temporary waste stockpile. The fine ( ~ 0 . mm)
2 fraction from the
spirals is pumped to the ball mill cyclone circuit for further
classification.
The cyclone overflow slurry is pumped through a vibrating
trash removal screen, which has 0.7 mm apertures, into a 34 m
diameter high-rate leach feed thickener prior to entry into the
leaching circuit.
Each of the temporary reject stockpiles provides three days
storage. The mining contractor relocates the material to larger
waste and low-grade stockpiles, subject to grade.
GRADE CONTROL
The aim of the grade control drilling is to predict the leach
feedgrade of the ore sent to the autoclave. To achieve this an ore
block has head grade, upgrade and mass passing estimated to
predict the feedgrade and mass passing.
RC drill chips are logged as upgrade, non-upgrade or grind.
Talc and limonite ores (goethitic upper saprolite) are logged as
upgrade, and lower saprolite or nontronite/smectite rich material
is logged as non-upgrade. Manganese/cobalt rich material is
logged as grind.
In order to best predict upgrade through the current plant,
procedures have been put in place that mimic the process of the
plant, and define optimal upgrade parameters of the ore.
The data is obtained from RC grade control drilling
undertaken on a 10 m line spacing with 5 m hole spacing. The
drill spacing is reduced to a 5 m line spacing in areas requiring
additional definition. Drill samples are collected every one metre
and composited to a two metre sample. This sample is then sent
for assay and upgrade testwork as shown in Figure I . Material
requiring upgrade is split before sample preparation. One split
(Sample one) is processed as normal being assayed for nickel,
cobalt, manganese, aluminium, magnesium, iron and chrome.
- 17 May 2000 4th International Mining Geology Conference
 UPGRADE ABILITY AND GEOLOGY OF CAWSE NICKEL OKE

Upgrade Equations Used for Back Calculations:

YO Mass Recovered = {(Mass of Sample - Mass of Reject) / Mass of Sample} x 100

OO
/ Upgrade = (Nickel Upgrade Grade (%) / Nickel Head Grade (%) x 100)-100

Upgrade Grade (%) ={Head Grade - (Mass Reject) / Mass Sample x Reject Grade)} / (1- Mass Reject / Mass Sample)

OO
/ Recovery =lo0 x {(% Mass Recovered / 100) x Upgrade Grade} / Nickel Head Grade

Note for grade control samples the -0.5 mm fraction mass is used for mass recovered and +0.5mm for mass rejected

Flowsheet of Upgrade Test Procedures:

3-5kg Sample

*
Split

Weigh Sample Assay Head Sample

I I

Bottle roll for 10 minutes Report Ni, Co

Screen < 2kg (-0.5mm)

$.
I
Dry and Weigh Oversize
$.
Pulverise Sample

Assay Oversize Reject

Report Ni, Co

* w

FIGI - Upgrade equations and flowsheet for grade control testwork

The result grade is used as the head grade. The other split
(Sample two) is weighed, before being placed in a bottle roll
with water and rolled for five minutes. The slurry produced is
then passed through a 0.5 mm screen where the reject material is
collected. weighed and assayed for cobalt and nickel. This is the
equivalent of the material rejected from the plant circuit.
Barrel rolling is undertaken as it is considered more precise
than wet sieving alone. I t agitates the sample, breaking down
indurated clays, clay balls and weakly competent upper saprolite
material. All material submitted for upgrade is placed in the
bottle roll. The sieving of samples through 0.5 mm post bottle
rolling involves around 30 seconds of washing with hosc to pass
fine fraction. No material is physically ‘pushed’ through the
sieve.
Although initial testwork found a 212 p m screen as an
optimum screen size for upgrade, grade control utilises a 0.5 mm
screen that provides a robust test and good reconciliation to the
current plant configuration. Wet sieving, compared with dry
sieving, breaks down indurated clay and oxide particles
(increasing the upgrade and amount of mass passing a screen).

4th International Mining Geology Conference Coolum, Old, 14 - 1’1 May1 2000 257
 S DENN. C FEKGUSON and S M A K I N

The amount of water added to each sample is equivalent t o the
sample size. Any wet samples that require drying and then
crushing are crushed to a max of I O mm. The current hest
practise for screen upgrading testwork as used for all grade
control samples and on-going exploration work is' detailed i n
Figure I .
Some differences between the plant process and grade control
testwork are:
No spiral and cyclones. The reject from these process steps is
of minimal mass, but higher grade.
RC drill chips arc crushed to a liner grainsize than mined ore
allowing more material to pass through the screen and
reducing the upgrade in grade control samples. Crushing
size. however. makes little difference to the upgrade results
in RC samples.
Upgrade testwork is normally conducted every fourth line of
RC drilling. This provides a sufficient density of drilling to
enable upgrade calculations on most ore blocks while keeping
analytical costs to a reasonable level.
The predicted autoclave feedgrade can then be back calculated
from the original mass of sample two, the mined grade (from
sample one) and the reject mass and grade after screening.
The calculation method of upgrade is detailed in Figure I .
Sampling procedures
Sampling of the RC drill cuttings is critical for the successful
evaluation of the upgrade characteristics of the ore. To ensure
good sample collection the following procedures are used.
all samples are taken from face sample RC drilling;
no water injection is allowed and holes are drilled dry (there
is no formation water);
sample collection systems on both grade control rigs and
exploration rigs are designed to use dust collectors to collect
as much of the fine material as possible; and
all hbordtory work is carried out using a standard procedure.
Heproduceability of data
Testwork to confirm the ability to reproduce results from the
upgrade lest procedure have been completed using original drill
cuttings stored i n green plastic bags ( I m per plastic bag). These
were rcsuhmitted a s the same 2 m intervals after they were
placed through a splitter (to maintain the representative nature of
[he sample).
The results showed that the upgrade testwork is reproducible
for nickel and cobalt head grades. reject grades. passing grades.
inass passing, upgrade and recovered metal.
ANALYSIS OF UPGRADE RELATIONSHIPS
.A plot of nickel upgrade versus mass passing is shown in Figure
2. The graph shows a scatter plot of nickel upgrade versus
percentage mass passing of a total of 5659 samples used from
grade control RC samples from Bunyip and Phoenix open pits. A
well defined maximum curve occurs with a scatter of data points
below the curve. Using this graph we can illustrate the basic
mathematical concepts of the upgrade process.
Reject
b
Ore
Feed (to auto clave)
b
In simplest terms the screening upgrade process takes in one
ore stream and splits it into two streams.
The governing equation for calculation of upgrade is found to
he:
upgrade = feed grade -I
rims passing.(feed grade - reject grade) + reject grade

upgrade=
U(massR- 1) + 1

300
reject- grade
U=l-

g 200

a
3
E 100

I . . I
II
-100
0 10 20 30 40 50 60 70 80 90 100
Mass Recovered

FIG2 - Theoretical nickel upgrade versus mass recovered. and actual gnde control data.

1 258 Coolurn. Old. 14 - 17 May1 2000 4th International Mining Geology Conference
 UPGRADE ABILITY ANI) GEOLOGY OF CAWSE NICKEL ORE

Each stream contains a certain percentage of an element of This factor is a measure of the inhomogeneity of the nickel
interest (eg nickel). Let us call these h (for head grade), r (for distribution. It ranges from U = 1 (minimum rejected grade) to
reject grade) and f (for feedgrade) (per cent w/w). The combined U = 0 (homogeneous distribution) and U<I (higher grade in the
mass flowrate of the reject and feed streams equals the mass rejects).
flowrate of the input stream. We shall call this M (masdtirne). If Thus Equation 3 becomes:
we use x to represent the fraction of mass passing to the feed
stream a mass balance can be performed: 1
y= -1
mass rate of nickel in = mass rate of nickel out. U(X - l ) + l

11,M f.M .x + r . M .( I - x ) It is possible to characterise different ore types by their

U range. The average of all the data points of the grade control
or data gives a U value of 0.54 while the moving average trend line
as shown in Figure 3 has a U value of 0.75 which increases to 0.9
at 30 per cent mass recovered. This indicates that the grade
inhomogeneity is not constant for the data set and is composed of
The percentage upgrade y is the difference in nickel grade at least two populations.
between the feed and ore streams, as a fraction:
f - 11
)'=-
11

or

y = -f- l
11
Combining Equations I and 2 gives: __
0 5 10 15 20 25
y= -1 (3) Elemental %
x( f - r ) + r
FIG3 - Nickel upgrade versus aluminium. magnesium and iron.
As head grade ( h ) is a function of reject and feedgradcs (r.J grade control data trends.
and mass passing ( x ) , upgradeability (y)is a function off, r and x
(icy = j(f,r , x ) ). These are geologically determined parameters. UPGRADE CHARACTERISTICS OF
Some bounding conditions can be found using Equation 3. The ORE TYPES-RELATIONSHIP BETWEEN
best possible upgrade will be achieved when no nickel is rejected
(ie r = 0). LITHOLOGY, MINERALOGY AND UPGRADE
with r = 0: Upgrade is dependant on two things, the heterogeneity in grade
between coarse and fines and the relative amounts of coarse and
y = - -f l fines.
fx Figure 2 shows the relationship between upgrade and mass
passing while Figure 3 shows the relationship between upgrade
)'=--I 1 and each of the elements iron, aluminium, and magnesium. The
X
data in Figure 2 falls into two general trends. The first trend
This defines the upper limit of data from upgrade testwork as (U>>o). where upgrade increases with decreasing mass passing,
shown in Figure 2. When there is no inhomogeneity between the occurs because there is a distinct heterogeneity in grades
reject and feed streams (ief = r ) there will be no upgrade. between coarse and fine material. The second trend (U<=O).
ie with f = r : where upgrade is poor or there is no upgrade regardless of mass
passing, occurs where the coarse and fines have similar grades.
Upgrade is relatively poor for material low in free silica or
high in aluminium (>3.5 per cent aluminium), magnesium
I f the rejects carry more grade than the feed stream ( r > f ) a (>4 per cent magnesium unless talc-rich-8 per cent). or iron (25 -
downgrade will result. 30 per cent iron) as illustrated in Figure 3. Upgrade is less
dependent on the amount of iron because iron does not occur as a
r >f:
silicate (nontronite) in large quantities at Cawse. The effect of
removing aluminium and magnesium rich material from the data
<I set, however, is an increase in average nickel upgrade from
x( f - r ) + r
30 per cent to 45 per cent. Upgrade within material with greater
Y<O than three per cent aluminium is less than 20 per cent. Average
upgrade in material with greater than four per cent magnesium is
To display more detailed behaviour, simplifications must bc also less than 20 per cent. These materials represent alluvial and
made to reduce the function to two variables. Feed and reject lower saprolite material respectively. However, material with
grades can be expressed as a single factor (U) to simplify the little or no magnesium or aluminium upgrades greater than
equation. 40 per cent. In this case, the nickel upgrade is dependent on the
amount of silica in the rock.
The extremely high upgrades observed where iron is < I O per
cent is due to the high silica content of these rocks as there is an
inverse relationship of silica and iron.

4th International Mining Geology Conference -

Coolum. Qld, 14 17 May 2000 259
 S DENN, C FERGUSON and S MAKlN
The low aluminium content of the protore at Cawse seems to
limit the amount of smectite formed, and the rapid breakdown of
the protore to goethite, kaolinite and silica means that upgrade
ore makes up almost 70 per cent of the profile at Cawse.
The multi-element data above relates well to lithological units.
High aluminium and iron values occur in the mottled alluvial
clays where the mineralogy consists of kaolinite, haematite,
I
goethite and little free silica. Pisoliths are the main constituent of
the coarse reject, and they make up only a small proportion of the
alluvium.
Kaolinite, which does not contain significant nickel, and
haematite which contains little nickel both pass into the
autoclave feed reducing the grade of the passing fine material.
The result is a small amount of rejected coarse material and very
little difference in grade between coarse rejected material and
fine autoclave feed material.
Ore containing high magnesium is found in talc zones and in
the lower saprolite. Mineralised lower saprolite material consists
of serpentines and smectitic clays. Little iron oxide material is
found except along grain boundaries and in fractures. Nickel is
contained within smectite, iron oxide and to a small degree in the
serpentine. The coarse reject material consists of blocks of
saprolite (serpentinite) and smectite clays, which tend to absorb
water and ‘ball up’, creating an artificial oversize. Smectites,
goethite and minor serpentine also make up the fine material
passing through to the autoclave. The rejection of blocky
non-mineralised saprolite means that this material can be
upgraded, because c o m e saprolite is generally slightly lower in
grade than the finer material, and this docs help the upgrade of
saprolite ore slightly. However, the balling srnectite clays and
high viscosity of the material make good upgrade results difficult
to accomplish within the current plant design.
Talc zones, limonite zones and silica zones all contain free
chalcedonic silica, silicified saprolite and nickel bearing minerals
such as talc, chlorite or goethite. Barren silica (nickel less than
0.4 per cent) forms the bulk of the reject, with only minor
goethitic saprolite found. The huge difference in nickel content
between silica and nickel bearing minerals such as goethite and
talc means that the nickel grade will increase almost
proportionally to the amount of silica rejected.
100
90
80
70
60
50
40
30
20
10
0
0.60 0.80 I.oo
%NI head gtadr
FIG4 - Nickel upgrade per cent versus Ni head grade from mill production data to the end of December 1999
260 Coolurn. Old. 14
Manganese oxides are associated with massive chalcedonic
silica and form as coatings on the‘walls of cavities. During the
upgrade process they are. therefore, rejected along with the
coarse material they are associated with. This can even lead to a
downgrade in nickel and especially cobalt grades as these
elements are concentrated with manganese oxides. Values as low
as one per cent manganese generally indicate that a sample will
not upgrade.
Cobalt-rich. manganese oxide ores are processed by crushing
and grinding all fractions of the ore as Grind ore. Saprolite ore,
alluvial ore and ore rich in smectite are all stockpiled as
non-upgrade ore and will not be processed with the current plant.
RECONCILIATION
A concern with grade control upgrade testing was its
effectiveness in reproducing the upgrade process occurring
through the plant. Re-sampling and testing of ore from Bunyip
pit has shown that grade control upgrade testing is repeatable and
representative.
Of the total (upgrade) ore processed, upgrade was predicted to
be 28 per cent for nickel with an autoclave feedgrade of 1.72 per
cent nickel. The plant produced an upgrade of 33 per cent for
nickel with an autoclave feedgrade of 1.70 per cent nickel. The
moderately higher upgrade is due to a slightly lower than
expected ROM grade. Lower grade material generally contains a
higher coarse fraction and upgrades are therefore higher.
In this way, upgrade is capable of compensating for the effects
of dilution. Coarse, lower grade material will not effect autoclave
feedgrades if included in higher-grade blocks. In Finger BD-001,
for example, high dilutions and a correspondingly lower IWM
grade (1.17 per cent nickel) were encountered, yet upgrading
increased the autoclave feedgrade to 1.65 per cent nickel. Further
testwork showed that material with nickel grades as low as 0.3
per cent nickel could theoretically produce an autoclave
feedgrade of 1.5 per cent albeit with a low mass recovered of ten
per cent.
Compared to the predicted upgrade for the stage I feasibility
study, the reconciliations show that the plant does not achieve the
expected outcomes. This is shown in Figure 4, where the upgrade
1.20 1.40 1.60 1.a0
- 17 May 2000 4th International Mining Geology Conference

trend for the feasibility study is shown, along with all the daily
production upgrade results. Three additional trends are shown,
for each pit mined to-date. The results show that with a head
grade of 1.4 per cent nickel the plant averages 34 per cent
upgrade compared with the initial testwork of 40 per cent. At I . 1
per cent nickel head grade the Bunyip pit trend crosses the
predicted trend and indicates (from a limited data set) that that at
0.8 per cent nickel head grade a 100 per cent upgrade is possible
to a 1.6 per cent autoclave feedgrade. The Orc pit trend follows
the Bunyip pit, but is biased lower due to its ore being blended
with ore from Phoenix pit. The Phoenix pit trend shows an ore
type that is non-upgrade due to i t being homogenous, containing
no coarse chalcedonic silica component and being high i n
aluminium, magnesium and manganese.
CONCLUSIONS
The screening upgrade method provides the Cawse Nickel
Operation with a cost-effective and flexible way to provide an
increased grade of nickel through the process plant. The process
is simple and relies on the separation of coarse lower grade
material from a higher grade fines fraction. The process uses
trommels and screens to achieve this separation. The upgrade
value of the ore is successfully predicted by using a simple
analytical process using standard RC samples. The different
upgrade characteristics of samples are related to different ore
types, and their mineralogical associations. The upgrade data has
been shown to follow a simple mathematical relationship that can
be used to help predict long-term trends in the data for future
studies on plant expansion options.
4th InternationalMining Geology Conference Coolum, Old, 14 - 17 May 2000
UPGRADE ABILITY A N D GEOLOGY OF CAWSE NICKEL ORE
ACKNOWLEDGEMENTS
The authors would like to acknowledge the assistance of Centaur
Nickel Operations in allowing the publication of this paper and
also the professional contributions made towards understanding
the Runyip deposit by geologists from Centaur Mining and
Exploration, in particular Ken Hellsten, Toby Morris and Jenna
Shuttleworth. We acknowledge the many other discussions held
with other personnel who have greatly added to the
understanding of the geology of the Cawse nickel deposit.
REFERENCES
Brand. N W. Butt, C R M and Hellsten. K J. 1996. Structural and
Lithological controls in the Formation of the Cawse Nickel Laterite
Deposits. Western Australia-Implications for Supergene Ore
Formation and Exploration in Deeply Weathered Terrains, in
I'mceeditig:s Nickel '96.pp 18.5-I90 (The Australasian Institute of
Mining and Metallurgy: Melbourne).
Bywater, A and Denn, S, 2000. The Bunyip Lateritic Nickel-Cobalt
Deposit. Cawse Nickel-Cobalt Operations, Kalgoorlie. Western
Australia, in Proceedings 41h Intemotionul Mininx Geohgy
Conference. pp95 - 104 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Denn, S M. 1998. Large Diameter Drilling at Cawse Nickel Project- An
Innovative Solution to Metallurgical Sampling. AIG' Bulletin
22:6 1-66.
Hellsten. K J, Lewis, C R and Denn. S, 1997. Cawse Nickel Cobalt
Deposit. in Geology o f the Ausiruliun and Pupuu New G'uineun
Mineral Deposits, (Eds: D Berkman and D Mackenzie) pp 335-338
(The Australasian Institute of Mining and Metallurgy: Melbourne).
261
262 Coolum. Old. 14 - 17 May 2000 4th International Mining Geology Conference
The Interaction Between Geology, Mining and Metallurgy at
StaweII Gold Mines Pty Ltd
D Fredericksen'

ABSTRACT
Stawell Gold Mines Ply Ltd operates two underground decline mines
within the township of Stawell. An active exploration program and
commitment by owners to improving the ore reserves has led to an
improved mine life and reduced operating costs since the purchase of the
operation by Mining Project Investors and Pittston Mineral Ventures in
late-1992. Over the past six years of operation a cumulative I IS0 OOO
ounces of gold have been added to the mineral inventory. An improved
geological understanding of the orebody has evolved over time increllsing
the ore reserves and allowing the development of long-term plans for the
mines future. This has enabled important capital decisions to be made
providing the impetus for improved productivity and thereby reduced
operating costs. Co-operative mine planning and mine geology utilising
best practice geological systems have enabled the effective extraction of a
structurally complex and mineralogically varied deposit within a rural
Victorian township. Detailed metallurgical research has improved the
function of an aged and poorly designed circuit to boost the mill capacity
whilst also improving the metallurgical recovery. The combination of
metallurgical expertise and an understanding of the geological setting
enable an effective control of metallurgical recovery.

INTRODUCTION
Stawell Gold Mines Pty Ltd operates underground decline mines
at the Magdala and Wonga deposits. These are the two largest
orebodies of the Stawell Goldfield and lie within ML1219 which
is along the eastern margin of the city of Stawell (Figure I ) ,
245 km NW of Melbourne Victoria.
Stawell Gold Mines Pty Ltd (SGM), a wholly owned
subsidiary of Mining Project Investors Pty Ltd (MPI), is the
manager of a joint venture between Mining Project Investors Pty
Ltd and Pittston Mineral Ventures. SGM operates the Stawell
Gold Mine and conducts exploration on surrounding tenements.
Mining Project Investors Pty Ltd is a private exploration and
development company with assets in Australia and the USA. The
purpose of this papcr is to demonstrate how an active exploration
program and commitment by owners to improving the reserves,
has lead to an improved mine life and how in an operation such
as this continued co-operation amongst mining professionals is
required.

HISTORY
Alluvial gold was discovered near Stawell in 1853 (Clappison,
1965) and an estimated 0.8 million ounces of gold was won from
the alluvial leads in the period 1853 to 1860. Production from the
leads waned in the early-1860s and ceased in 1912 (Watchorn,
1986).
In 1855 gold hosted within quartz reefs was discovered at Big BASS BASIN
Hill. High-grade ore (>15g/t) was mined up until the early-1880s !9*00'00"9
-
from the Sloanes Flat, Cross Vertical and Scotchmans kilometres
FlatslVertical reefs. As production from these systems declined,
'payable' ore was discovered within shear zones to the east and
4,. 8 (* 42. * " ,4 . o' IS . , ,.
further to the south in metamorphosed schists, which form the
basis of the current production from the Magdala and Wonga FIG I - Location of the Stawell Goldfield and Victorian geological zones,
mines respectively. It is estimated some 1.9 million ounces of after Cayley and Taylor. ( I 996).
gold was produced from underground before the closure of the

mines in 1926. The main reason for the decline in production

I. MAusIMM, Chief Geologist, Stawell Gold Mines, Leviathan Road. was poor recovery, as much of the gold within the shear zones
Stawell Vic 3380. was associated with sulphide minerals.

4th International Mining Geology Conference Coolum. Old, 14 - 17 May 2000 263
 D FREDEKICKSEN

Production and resource figures for the goldfield are
summarised in Table 1. Historic production amounts to some 2.7
M 0% gold with recent production and current reserves and
resources giving a total endowment for the field of approximately
4.7 M oz. A further 1 .O M 0%of gold has been produced from the
nearby Ararat alluvial goldfield with lesser and poorly
documented amounts of gold produced from smaller mines
worked in the Stawell area.
1
TABLE
Stawell Goldfield production resources and reserves.
.~
Production_..
~
The reserve and resource discovery since acquisition of the
project by Mining Project Investors is shown in Table 2. In all
mine development and exploration has added I .2 million ounces
of gold resources (including production and addition to proved
and probable reserves) at a discovery cost of approximately
$1 I .OO per ounce (all exploration costs included).
During the calender year 1999. Stawell Gold Mines produced
more than 94 o(M ox of gold and maintained proved and probable
reserves able to sustain a further four to five years of
underground production. Long-term plans incorporating current
inferred resources from underground and recently delineated
surface resources fulfill production requirements for a further ten
~. -
. - years of mine life.
!

.I- ~

REGIONAL GEOLOGY

'
' Ore Source
I
. ~. .
- The unique structural and geological setting of the Stawell gold
I Historicd (18.53- 1912) deposit and the intense deformation of thc volcanic and
- Alluv~al
Underground
770000
1900000
(185.5- 1926)
!(1984-Dec1999)1
I sedimentary package is a direct result of the complex history of
I Recent (WMC - SGM) (I984- Dec 1999) '
the western margin of the Lachlan Fold Belt (Figure I ) . East
west cornpression of the Lachlan Fold Belt during the Ordovician
- Underground and Open cui 920 OOO
against the Pre-Cambrian Adelaide Fold Belt has uplifted a
multiple thrust-stacked sequence of basalt flows and sca floor
Total Production_-- -
-.

O K R e s e r e n d Resources .~
!
I
' 3606000
.
,
~

As at ~
(Dec 1999),
volcanogenic sediments from the base of the stratigraphic pile
(Fredericksen and Cane, 1998). The 'Stawell Corridor' between
the Coongee Fault and the Moyston Fault (Figure 2 ) represents a
Ore source Contained gold
structural high within this sequence, associated with over five
~

- .~ ~

million ounces of gold endowment along the exposed 50 km

Magdala strike length. The belt is obscured by basalt cover south of Ararat
.Proved and probable and by Murray Basin sediments to the north of Stawell.
.Inferred
Wonga
Proved and probable 28 804 MINE SCALE GEOLOGY AND EXPLORATION
Inferred 9300
S*e Resou= - 226 000
.~
The current mining operation is based on the Magdala Decline
Mine, which was commenced in 1981 and has now reached a
Total Reserves and Resources
- I 097 180
depth of 7.50 m below surface. In addition the Wonga mine, was
~

Total-Goldfields .~ 4703 180 commenced in 1984, as an open cut on near surface ore
structures within the contact aureole of the Stawell Granite.
approximately 2 km south of Magdala. A decline was
commenced from the bottom of this pit in 1985 and is currently
inactive and will not be discussed further.

TABLE
2
Resource inventory discovered December I992 to December 1999.

. I 423000 I 183466 ' 606466 j

Mine 1 Tonnes ~ Grade Ounces Tonnes Grade Ounces
Production ..-. .
... . -.-

i
; L ?'
!,. 1999
.
8 I 668268 . i 4.66
4.70
....

100
69224122
I l l 540
I1.-. . 8 2 6 L
. . . .
4.92
. .-..-,I
. '
13 066.

I
I

' Total -. 3307347 .. 546 903 706 931

----i-.!_. 4.88 110892
---
1 657795
--I
i
Resource and Reserve (June 1 9 x 822cm I-. ........
I

264 Coolum, Old. 14 - 17 May 2000 4th International Mining Geology Conference
 THE INTERACTION BETWEEN GEOLOGY. MINING A N D METALLUKGY
MAGDALA
PLEASANT
CREEK
FAULT
STAWELL
FAULT
Basalts
ILste Proterozoic-Cambrlan Basement)
Volcanopsnlcs
0 St Arnaud B e d s
(incl Mine SchIst. Eastern Schist)
h i2 - Geological cross-section of the 'Stawell Corridor' looking N. Modified after Cayley and Taylor, (1996).
Ore from the Magdala mine is produced from a series of
subparallel lodes hosted by faults and shear zones on the western
flank of a large basalt antiform 'the Magdala Anticline' (Figure
3). These lodes, the most important of which are Central lode
and the Basalt Contact lodes, are intimately associated with an
intensely deformed package of volcanogenic sedimentary rocks.
Historical production as previously discussed was predominantly
from high-grade 'Hangingwall Reefs', hosted by the Stawell
Fault in psammo-pelitic rocks stratigraphicly overlying the
volcanogenics. The Stawell Fault is a large regional scale reverse
fault, which locally forms the contact between the footwall
'Mine Schist' and the hangingwall 'Wonga Schist'.
Mineralisation within the Magdala mine is related to a regional
tectonic event termed D4 by Watchorn (1986). The major
structural event related to D4 other than the Basalt anticlines is
the development of the Central lodes shear system (striking at
330" - 340" and dipping SO" - 80" SW) which overprints earlier
DI - D3 events. The Scotchmans Fault and South Fault arc both
115 and effect offsets in the mineralisation. Recent diamond
drilling beneath the South fault has established that the Magdala
mineralised system is offset by the South Fault and that the
Magdala system as we know it represents an upper block which
has been thrust upward and south on the South Fault. Diamond
drilling of this target continues to outline the geometry,
mineralisation and economic potential of the block beneath the
fault.
Ore shoots developed within the Magdala Lodes generally
plunge steeply north, but are constrained within a moderate
northerly plunging corridor bounded by the Scotchmans Fault
and the South Fault (Figure 4). It is within this corridor that all
recent production activity has been focussed and all of the
resource inventory gains achieved and currently contains nearly
all of the resources outlined to date. Exploration during 1997 and
1998 of the near surface potential of this corridor identified
significant resources suitable to open cut mining. Feasibility
studies and environmental effect statements have been prepared
with the aim of being able to bring this into production in the
corning year.
4th International Mining Geology Conference Coolum, Qld, 14 - 17 May 2000
1 COONGEE
FAULT
CONCONGELLA
FAULT
Turbldllsa. Tremollte Schlntn. Intercalnted Mallcs.
0Basalt6 and Volcsnopenlc Sediments
Glenelp Zone, Adslslds Fold Belt
1+1 Granltold tntruelon
A deep surface diamond drilling program aimed at identifying
the resource potential below -900 m KL has recently been
completed. The targets for these holes were up to 500 m further
north and 200 m vertically below the nearest underground
drilling information and were developed from structure contours
of underground drilling and mapping information. They were,
despite the distances involved, very close predictions of the
position of the major surfaces identified, Scotchmans Fault,
Central Lode and the South Fault. Intersecting the targets to
within 20 - SO m of plan coupled with strong mineralisation in
several of the intersections shows very good continuity and
predictability of the mine scale geology. This predictability
becomes and issue on the smaller stope scale where orebody
geometry's and grade can change dramatically within metres
along strike or up and down dip.
Other exploration targets around the Magdala Anticline but
outside mine corridor include:
1. Mariners system above the Scotchmans Fault. including
down plunge extensions of the Big Hill mineralisation.
2. Mineralisation on the East Flank of the Magdala anticline,
where some significant volcanogenic hosted intersections
have been produced.
3. Below the South Fault for a possible repetition of the
entire Magdala System, as discussed previously.
MINE DEVELOPMENT
The Stawcll operation utilises modern mining methodologies. All
of the underground ore is hauled to the surface in SO tonne haul
trucks via a conventional 5.5 m by 5.0 rn decline with variable
gradients from 1:9 to 1 :8.Prior to mid-2000 the Magdala decline
consisted of a north and south branch below -468 m RL (Figure
4). As a result of a shorter strike length the two decline branches
will merge at -786 m RL. A fleet of ELPHINSTONE R1700,
R2800 and K2900 LHD's tram ore from the stopes and load the
haul trucks. During the calender year some 730 OOO tonnes of ore
265
 II FREIIERICKSEN

I 0 1

Fici 3 - Geological cross-section through Magdala mine looking NW

grading 4.7 g/t were hauled to the surface. In addition to this a
further 350 000 tonnes of mullock and low-grade ore were
handled either underground as stope fill or to low-grade
stockpiles on the surface. Increasing annual underground
production has been progressively achieved despite the cessation
of mining the Wonga orebody and increasing depth in [he
Magdala mine (Table 2).
Current development strategies involve levels spaced at
nominally 19 m backs to backs intervals in the ore. Very little if
any level development is placed in waste except for creating
ventilation links. A wide variety of orebody geometry's exist
over the 1.0 km strike length of the orebody with widths varying
from <1.5 m to greater than 15.0 m. These range in dip fi'om
45 degrees to vertical and appropriate development strategies are
required to maximise the extraction of ore.

266 Coolurn. Old, 14 - 17 May 2000 4th International Mining Geology Conlerence
 THE INTERACTION BETWEEN GEOLOGY, MINING AND METALLURGY
Flci 4 - Longitudinal projection of the Magdda mineralised system showing major stucturd features, resource and mined ore blocks, decline development
and exploration drill results and targets.
Over the past five years handheld stoping methods have
largely been phased out of the operation and significant emphasis
placed in improving the accuracy and reliability of the longhole
open stoping methods. Much of the ore is fired from
conventional uphole retreat stopes in panels up to 30 m in strike
and ranging in tonnage from 2500 - 5 0 00 tonnes. Other areas
involve more complex stoping plans in which ore is mined from
stopes extending over 3 to 4 levels. Cemented rock fill has
recently been introduced to the stoping program as a way of
optimising the recovery of the resource. To measure performance
of the stoping process and to accurately capture final void
geometries for filling, future firing and mine design all stope
voids are surveyed with a cavity monitoring system.
Geotechnical ground conditions vary significantly and range
from very good to very poor. The development cycle utilises
resin bolts and mesh with cable bolts introduced for intersections
and as hangingwall support in the stoping cycle.
METALLURGY
Ore is treated in a plant initially built to treat tailings sands and
oxidised open pit ore. Significant upgrades over time have seen a
plant evolve with the capacity to treat 800 000 tonnes of
hardrock feed. This coupled with an improved understanding of
the metallurgical characteristics of the ore feed has boosted gold
production substantially. Campaign treatment of different ore
streams based upon geologically distinct ore types was
introduced in 1993 and significantly enhanced gold recoveries
and enabled cost reduction strategies to be implemented.
All ore types currently pass through a two stage crushing
circuit before being ground in a ball mill to nominally 95 per
cent passing I O 0 microns. The cyclone underflow passes through
4th International Mining Geology Conference Coolum, Qld, 14
Knelson concentrators to recover any coarser free gold before
being added back to the mill for further grinding. At this stage of
the process differing ore types are managed in different ways
Central Lode ore is treated through a floatation circuit with the
floatation concentrate taken to a stirred ball mill to reduce its size
to <20 microns before being added back to the leach circuit.
Under conventional CIP treatment this ore will exhibit
metallurgical gold recoveries ranging from as low as SO per cent
up to 88 per cent. Much of the gold is associated with pyrite and
is also affected by moderate to high amounts of graphite, which
robs gold from the pregnant solution. The fine milling coupled
with carbon management strategies maintain gold recoveries for
this ore in excess of 80 per cent.
Basalt Contact ore is taken to the leach circuit direct from the
ball mill discharge. Much of the gold in this ore is free milling
and is associated with arsenopyrite and pyrrohtite with minor
amounts of pyrite. Coarse gold recovery in the Knelson
concentrators ranges from 25 to 50 per cent of the final gold
recovered which is generally 88 to 92 per cent of the feed.
Stockworks ore from irregular zones of mineralisation either in
the hangingwall of the basalt lodes or from the footwall of
central lode exhibit varied metallurgical response and requires
either of the two treatments identified.
Previously the ore mined from underground at Wonga
exhibited recoveries in the high 75 - 80 per cent range. Gold in
this ore was locked within fine grained arsenopyrite crystals
which were concentrated well in the floated circuit. Subsequent
fine grinding to less than ten microns improved overall
recoveries to >80 per cent.
An additional benefit of campaign treatment is the ability to
stockpile and treat stopes separately to gain additional geological
reconciliation information. Where possible this is carried out.
- 17 May 2000 267
D FREDERICKSEN
MINE GEOLOGY
An on-going program of Resource Ilefinition drilling is
completed some two years in advance of mining. As the orebody
envelope plunges 30 degrees to the north and is up to 1.0 km in
strike Icngth, specifically placed drill drives in the hangingwall
and extending well north of the orebody are required. To-date
two of these drives have been completed with the third to
developed during 2000. NQ diamond drill holes are nominally 30
m spaced and enable the estimation of an indicated resource
model in MINESIGHT and MEDSYSTEM. Preliminary mine
designs are completed and decline designs committed based on
this data.
An enhanced ACQUIRE database system developed by
Metech Pty Ltd to handle this drilling data has been established.
This also caters for all production and exploration drilling
information, which represents some 30 OOO - 3.5 000 metres of
underground diamond drilling annually. To aid logging and data
capture. geologists enter data via a barcode logging system. A
geological legend developed over the life of the project
incorporates detailed geotechnical and detailed point data
descriptions. Standard SUKPAC data extraction macros enable
all of the geological and geotechnical data to be plotted in any
orientation. I t is important to be able to extract the data in a
number of different grid sets as the orebodies locally rotate
significantly and working perpendicular to the strike enhances
the geological interpretations.
Further production diamond drilling to nominally I O m centres
is required prior to the final commitment to ore development.
This function along with the estimation of a measured resource is
the function of the mine geologists and is an on-going process
until final stope mining is committed.
In the Central Lode orebodies development is guided by
survey control determined from the closer spaced diamond
drilling. In the Basalt Contact lodes some development is under
survey control whilst others are guided by daily geological input.
All development laces are mapped and sampled and followed up
with mapping of the backs of the advancing development. This
mapping also collects sufficient detail to aid in the design of
appropriate ground support for the final stoping designs. A
system of capturing the face samples in a spatial database has
been developed and further enhanced by capturing face and
hacks mapping information in true 3D space for extraction to
plans, cross-sections and for use in MINESIGHT for on screen
geological interpretations and modelling.
Over the past five years geostatistical and three-dimensional
resource modeling techniques have progressively been integrated
into the geological functions. It is now at the stage where nearly
all mine design work can be carried out utilising a detailed
geological model in real 3D space.
In conjunction with metallurgy and mining personnel the mine
geologists ensure that all material to be mined in upcoming
production schedules has some form of metallurgical testwork
carried out. Over the past five years the recovery estimation has
primarily been carried out on development face samples and final
stope drilling samples. This reactive process has been replaced
by procedures that identify samples from the various phases of
diamond drilling for detailed metallurgical analysis. An onsite
facility conducts leach tests and eharacterises the ore relative to
its ability to act as a preg robber in the treatment circuit and its
amenability to floatation. A site team assess the information as it
comes to hand and provide the appropriate feedback to the mine
planning, metallurgical and geology groups.
268 Coolurn. Old. 14
SUMMARY AND CONCLUSIONS
The Stawell Goldfield has an extensive history and a significant
gold endowment. Recent exploration success has continued to
add to the endowment of the field and given time for the mining
operation to continue to modify its operating practices i n the
mining, metallurgical and geology areas. The evolution of
operating practices has occurred in an operating environment in
which underground ore production and mill throughput have
been increasing.
Geologically the Magdala orebody is unique and significantly
different to other Victorian gold deposits. On a gross scale it is
predictable as demonstrated by the deeper drilling recently
completed. As the scale decreases back to stope size blocks it
becomes less predictable and geometries and grade distributions
vary significantly. This in itself necessitates a high level of
geological involvement in the mining process and a need to
collect information well in advance of the mining process. As the
orebody plunges away from the access development signilicant
capital commitment is required in appropriately placed
development from which drilling can be completed.
Metallurgically the orebody poses some interesting challcnges
exhibiting preg robbing and sulphide associated refractory gold.
To-date significant improvements in overall recovery of gold
through the circuit have been achieved and research work
continues aimed at reducing the effect of the preg robing and
recovering more of the sulphide associated gold.
Systems for data collection are required that provide ready
access to geological information and have portability across mine
planning and modeling software packages. For such a large and
diverse deposit three-dimensional modeling has been a challenge
but once instigated has shown benefits to the design and
scheduling process.
The geology functions from exploration through to day to day
grade control operations are integral to the success of the
operation and involve integration with the other mining
professionals. SGM has come some way toward optimising the
output from this deposit but clearly recognise a number of areas
in which continued effort is required.
ACKNOWLEDGEMENTS
The author wishes to acknowledge the permission of Stawell
Gold Mines Pty Ltd to publish this information. A large number
of personnel have contributed much to the development of the
Stawell operation and deserve much credit for their inputs.
REFERENCES
Cayley, R A and Taylor. D H, 1996. Geological Evolution and Economic
Potential of the Grampians Area, Victoria. in Recent Developments
in Victorian Geology and Mineralisation. Austruliun Insrirure of
Geoscienti.c/sBullerin 20.
Clappison, D J, 1965. A study of the petrology, mineralogy and
geochemistry of the Stawell goldfield, Victoria. MSc thesis,
University of Melbourne. Melbourne.
Fredencksen, D C and Gane. M. 1998. Stawell gold deposits. in Gedo,qy
of Austmlion und Pupua New Guineun M i n e m l Deposirs (Eds: D A
Berkman and D H Mackenzie). pp 535-542 (The Australasian
Institute of Mining and Metallurgy: Melbourne).
Watchorn, R, 1986. Deformation in the Stawcll Goldfield and its
Relationship to Gold Mineralisation, MSc Thesis, University of
Melbourne. Melbourne.
- 17 May 2000 4th International Mining Geology C o n t e r e n c e
Geotechnical and Structural
The Regional Controls Exerted on Rock Discontinuities at the
Iron Duke Deposit, South Australia and Extrapolation
Throughout the Rock Mass
c N Winsor’
ABSTRACT
Analysis of rock discontinuities, collected using a scanlinc mcthod. has
been undertaken at the Iron Duke open cut mine. on the southern margin
of the Middleback Range in the Gawler Craton. South Australia. The iron
mineralisation. which is a product of supergene enrichment of carbonate
sediments. is located on the W (western) limb of a gently N plunging D2
macrosyncline. Mesofolds plunge shallowly to the NE or steeply to SE,
suggesting two shortening events. of which the second produced
significant macrofolds. Discontinuities includc:
I. faults and shears which display variable orientations, mainly
striking WNW dipping steeply N;
2. mesofractures or joints maintaining a well constrained orientation.
dipping steeply S, subvertical striking E-W; and
3. bedding surfaces which are folded about a gently N plunging axis.
Through this example of the regional control exerted on local
discontinuities, it is clear that discontinuitics are not randomly distributed
as often assumed in purely statistical approaches. Commonly for rocks of
any age there is a distinct discontinuity pattern. reflecting the geological
deformation history. If the controls exerted on local rock discontinuities
can be determined and assigned a number related to their significance.
the way forward is available to develop a site specifc knowledge base that
can make realistic predictions for any position in a given rock mass. Such
a procedure would involve assessment of the regional geology, linked to
scanned discontinuities either via manual or automatic means. Recent
advances in automatic scanning rock faces (eg by the I-SITE Laser
Radar) to determine discontinuities distributions, enable the rapid
calculation of rock characteristics. This is a significant advance in rock
engineering, providing a method of safe and quick collection of data.
However it creates problems in the presence of an increase in the
geotechnical data available, which should be assessed in the context of
the regional geology. Although techniques are underway to analyse
post-blast discontinuities, the next signifant potential advance in this m a
could be the integration of a knowledge based system to m e s s
discontinuities ahead of mining, incorporating regional assessment and
human intuition.
I. MAuslMM, Mineral Resources, University of South Australia SA
SO9S. Present address: Applied Structural Geological Analysis,
28 Wildwood Drive, Salisbury Park SA 5109.
Engineering Rock Assessment
Joint roughness Joint condition factor
Alteration
Size and Termination
Density Block volume
Rock Material
FIG I - Stages involved in undertaking rock assessment and determining engineering parameters in order to determine the Rock Mass Index
4th International Mining Geology Conference Coolurn, Qld, 14 - 17 May 2000
INTRODUCTION
The stability of rock excavations is largely controlled by
discontinuities which are rock fractures of low tensile strength.
These include bedding. foliations and joints, which exhibit
characteristics commonly influenced by the rock type and the
deformation history (Schultz, 1096). For the purpose of
gcotechnical assessment extrapolation back into an exposed face
is required, although difficult without an appreciation of the
regional geology. For rock engineering assessment. the precise
values of a number of factors as shown in Figure I on the left of
the diagram should be determined, with the ultimate aim bcing to
assign a rock mass index. To achieve this, assumptions arc often
made that characteristics are uniform throughout the rock mass.
although not usually valid (Chiles, 1988). Difficulties in
predicting rock mass responses result from the discontinuous and
variable rock nature, ie heterogeneous, anisotropic,
discontinuous, porous, permeable and multiphase (Priest 1993).
Problems also arise from the multiphase nature. Despite the
common understanding that rock excavation can be disrupted by
the occurrence of unpredictable geology arising from
macro-deformation (ie large-scale folding and faulting), few
technique are available to assess the complete 3D naturc of the
rock mass prior to or during excavation. Recently attempts have
been made to determine a fractal - scale invariance relationship
for discontinuities as discussed by Barton and La Pointe (1995).
In making a detailed rock assessment, a variety of rock
properties should be systematically determined. such as by a
scanline sampling method (Priest, 1993). as used by rock
engineers, where a tape is extended across a rock mass and
measurements made concerning each discontinuity that intersects
the tape. This approach has been used here, but is supplemented
with regional geology assessment. To accommodate differences
between engineering and geological nomenclatures, structural
planes are denoted in this article by their dip or plunge (two
figures) and dip or plunge direction (three figures). Owing to
regional variations it is not often possible to uniquely determine
and assign a number to a structural orientation, so terms such as
Rock mass index
\ Real
/
outputs
271
 C N WINSOR

north (N) and west (W), ctc are commonly used in describing the
macrostructure. Deformation events are denoted by the letter D,
I folds by F, penetrative surfaces by S and lineations by L (after
Bell and Duncan, 1978).

THE GEOLOGICAL CONTROLS ON ROCK MASS

DISCONTINUITIES NON RANDOM! -
Gcoengineers traditionally apply geostatistics to establish the
relationship between discontinuities (Priest, 1993). assuming that
they exhibit a random distribution. However, distributions arc not
generally random, although in highly foliated rocks they may be. site 2
Statistical methods of analysing geotechnical data do not provide
a realistic model to enable extrapolation, as they assume
homogeneity or stationarity. Interpretative procedures have been Sa8 1
developed by geologists to extrapolate in 3D and determine the
relationship between structural elements. These are often based site 3
on inituitive or ‘gut feelings’, and are difficult to codify, being
often influenced by the availability of rock mass data and time.
I Fuzzy logic (Zimmermann, 1991) and/or neural networks
(Freeman and Skapura, 1991) potentially offer a means of
treating complex geological situations and interpretations in a
mathematical way. Results arc considered to be ‘more’ realistic
to natural situations. The possibility of incorporating fuzzy logic
and/or fuzzy set theory into all aspects of rock mechanics
investigations dealing with a level of uncertainty, is enormous.
Progress in this area has increased with the articles by Kacewice
(1988. 1990) being relevant. The idea of a fuzzy logic or neural
network knowledge based system to determine ground conditions
is not entirely new. as it has been applied to geological and
mining investigations (eg Hammah and Curran. 1998; Nordlund,
1996). Nordlund (1996, p 689) has commented that ‘fuzzy
methods are very useful. using qualitative geological data in
mathematical models’. Studies have been initiated by others to site 4
incorporate structural geology into rock engineering practise
(Thomas and Kor, 1992). However a knowledge based system to
access regional and local structural geology and enable rock
mass predictions is not currently available, although the ability to
develop such a system is apparent.
Programming a fuzzy knowledge based system would involve
identifying a number of crisp (well constrained) and fuzzy rules,
based on local conditions - relations and regional associations.
Through a literature review, preliminary crisp, semicrisp and
fuzzy relationships are recognised. Discontinuities are usually
controlled by the rock type, primary - secondary terrains and
modification phases. A wide range of terrains is evident in the
geological record, dependent on the tectonic conditions and
history. Generally for each of the environments, discontinuities
display a consistent pattern, controlled by the structural
overprints and rock types. Where an area is subjected to FIG2 - Structural plan of the Iron Duke Deposit displaying outcrop of
recurring tectonic events the discontinuities present reflect this banded iron formation and ore. bedding trends. clcavage and faults.
history as previously discussed (Winsor, 1995; Winsor and
Priest, 1996; Winsor and Fowler, 1997; Winsor, 1998). An
example of an application of fuzzy logic to potentially assess the Proterozoic orogenic belt in the Gawler Craton, with the
discontinuities at the Iron Duke deposit is proposed below. stratigraphy documented by Parker and Lemon (1982) and Fietz
(1 989). Mineralisation of the range is a product predominantly of
IRON DUKE GEOLOGICAL CONTROLS supergene enrichment of carbonate facies rocks. The structure on
the range as recognised by Ashworth (1973) comprises two
Regional geology synclines separated by an anticline.
The Iron Duke deposit (Figure 2) is situated on the southern Deformation
margin of the Middleback Range, 50 km S of Whyalla (Fietz
1989; Theologous, 1991). a N-S discontinuous set of hills, The Iron duke deposit has been subjected to three deformations,
forming the NE part of the Gawler Craton (Yeates 1980) in South of which DZproduced the most significant response. Fietz (1989)
Australia. Fietz (1989) undertook detailed adit and face mapping indicated that during DI and D2 the rocks were subjected to
and drill hole logging across the deposit. The Iron Duke deposit high-grade metamorphic conditions, but D3 was a retrograde
lies within the early proterozoie Hutchinson Group which rests cvcnt. The deposit is located in the hinge and the W- limb of a Dz
unconformably above the older complexly deformed Sleaford macrosyncline. plunging gently N-So012 (plungeoplunge
Complex basement. This forms part of the early to middle direction), with bedding folded about this orientation (Figure 3a).

272 Coolum, Old. 14 - 17 May 2000 4th International Mining Geology Conference
 THE REGIONAL CONTROLS EXERTED ON ROCK DISCONTINUITIES

Regional structural plots - Iron Duke

FIG3 - Structural data regionally from h e Iron Duke Deposit

4th International Mining Geology Conference Coolurn. Old. 14 17 May 2000

~ 273
C N WINSOR
The contoured maximum of bedding is oriented 170/6SE
(slrikddip), clearly indicating that most of the region is on the
W- limb of a syncline. Mine mesofolds plunge, shallowly to the
NE- or steeply to the SE- (Figure 3b), suggesting two shortening
phases. Although no direct overprinting evidence has been found
through this investigation or that by Fietz (1989). A penetrative
S2 slaty cleavage is weakly developed. oriented 004/88E3,
subvertical NS trending (Figure 3c). Faults and shears display
considerable variable orientations, many trending to the WNW
dipping steeply N (Figure 3d). Mesoscale fractures or joints
show a near constant orientation, dipping steeply S, subvertical
striking E-W (Figure 3e). These joints arc oriented normal to the
fold axis and can be described as ‘ac’ joints (cf Hancock, 1985).
Igneous dykes trend mainly N-S, with a variable dip (Figure 30.
The intersection of bedding and ac joints produces a lineation
plunging in the direction of the fold axis (Figure 3g). Dissolution
stylolite surfaces with peaks plunging to the E, W, SW or
vertically, arc considered a result of either horizontally directed
tectonic or overburden stress. The asymetry apparent in the
stylolite peak orientations as well as the fault and shear
directions, suggests that as well as shortening about an E-W axis,
there may also have been shortening about a NE-SW axis, so as
to produce the moderately SE plunging mesofolds in Figure 3b.
The following history is proposed after Fietz (1989) and
Parker and Lemon ( I 982):
DI Regional high-grade metamorphism, locally layer parallel
transposed S I , not recognised on the range. Layer parallel
intrusions.
D2 Tight to isoclinal macro - similar style N-S folding, slaty
cleavage S2 variably developed, strong. shallow N-plunging
mineral elongation and quartz rods. Main structure in the
range, no axial plane cleavage. High-grade metamorphic
event. Plunge reversals due to noncylindrical folding.
D3 Major non-coaxial deformation, open folding, retrograde
metamorphism, broad open folds. Major mylonite-shear
zones developed. which truncate the macrosyncline. Axial
planar cleavage not common. No significant feature
apparent to distinguish D2 and D3 folds. Conjugate shear
zones, with local S3, L3 and quartz rods, with a minor
effect on F2.
D4 NEYNW trending cross faults. shear zones, fold - kink
bands with E-W axial planes.
The Middleback Range and more specifically the Iron Duke
deposit, has been subjected to a number of episodes of igneous
intrusion, as described by Fietz (1989). These episodes are:
1. bedding parallel intrusive pre 112;
2. complex dykes that intruded post D2; and
3. fresh dolerite that intruded post deformation.
OBSERVED DISCONTINUITIES
The following discontinuities, which include penetrative surfaces
(bedding or cleavage) and non-penetrative surfaces (fractures,
faults, veins and stylolites) arc identified from an assessment the
Iron Duke deposit:
Bedding - defined by compositional layering. Lower and middle
Middleback Formations are particularly well bedded with
alternating layers of hematite and chert (Fietz, 1989). Locally
graded bedding is identified (Lemon, 1979). Bedding is well
preserved in jaspilite units. Other units are intensely folded
preventing the recognition of bedding.
Joints - very common mesofractures which display little or no
evidence of movement or offset. Often joints display orientations
controlled by the macroscopic folding or faulting as evident for
274 Coolum. Old. 14 . 17 May 2000
any region and sedimentary or metamorphic rock type that has
been deformed (cf Hancock, 1985). In regions that have been
affected by folding, the dominant orientations of joints are
normal to bedding and normal (ac) or parallel to the fold axis
(bc). This constraint on orientation means that for a plunging
fold, such as that at Iron Duke. the geometry of the bc joints will
vary, depending on the attitude of bedding (cf Winsor, 1985)
Joints at the Iron Duke deposit as at other locations. display their
best development in the competent rock units.
Faults and shear zones
Bedding parallel faults - these are mesodiscontinuities with
evidence of displacement. They may be present at all scales.
Normal faults - mcso and macrodiscontinuities, where the
hanging wall has moved down relative to the footwall.
Thrust faults - meso and macrodiscontinuities where the
hanging wall has moved up relative to the footwall.
Cross faults - meso and macroconjugate faults which strike
NW-SE and NE-SW. As noted by Fietz (1989) they are
pr,orly recognised, but show evidence of minor horizontal,
but not vertical, displacement.
Veins - discontinuites that underwent dilation and have been
filled with a precipitate eg quartz or carbonate which may have
been later removed. Veins can include fractures that are infilled
with carbonates or iron oxides. The geometry of the veins or the
vein filling material is often related to the stress or strain
directions active during deformation.
Penetrative cleavage - A layer parallel foliation is best developed
in schistose units in the fold hinges. but in jaspiites is absent. A
crenulation cleavage is locally developed. usually subparallel to
SI, and is axial plane to small-scale folds. The wavelength of
folds is variable from a few centimetres to tens of metres.
Luyer parallel shear zone.7 - bedding parallel discontinuities.
developed as a result of D2, due to differences in competency
between different layers.
Stylolites - planes along which dissolution occurred. Stylolite
peaks are often normal to the dissolution surfaces, with the peaks
defining the orientation of the stress direction ( T I .
Dykes - dolerite that intruded pre, syn- or post-deformation.
Discontinuity data
Detailed discontinuity data was collected at four locations across
the Iron Duke deposit, to determine their characteristics and the
major controls on the distribution. In undertaking a manual
scanline discontinuity survey and determining its position, an
important determining factor is the level of exposure and the
access. Such restrictions are not so important in the use of an
automated system, however, the results of this analysis highlight
the need for good macrogeological control and the influence of
variable lithologies.
Site I 308 RL - Structural data
Site 1 was situated in banded iron formation close to the highest
point on the Iron Duke deposit at RL 308. The site as depicted in
Figure 4 encompasses the limbs and hinge of a S-plunging F2
macrosyncline, which has been transected by a NNW striking,
SW dipping fault. Although joints over the syncline display
variable orientations, they can be readily distinguished into a
number of sets (Figure 4a). ie bedding parallel and bedding
normal which are ‘ac’ joint normal to the fold axis and bc joints
normal to bedding and ‘ac’ joints. A plot of normals to bedding
and cleavage are shown respectively in Figure 4c and e, revealing
the nearly subvertical bedding, N-S striking. The cleavage has a
subparallel orientation.
4th International Mining Geology Conference
 THE REGIONAL CONTROLS EXERTED ON ROCK DISCONTINUITIES

Site 1 structural data

FIG4 - Structural plan and data from site 1.

4th International Mining Geology Conference Coolurn. Qld. 14 - 17 May 2000 275
 C N WINSOH

Fourteen scanline traverses were undertaken to determine the

complete 3D -- characteristics of discontinuities across the
syncline. This involved a series of long horizontal scanlines and a
number of short vertical lines. Stereoplot of normals or poles to
discontinuities are displayed in Figure 4b, d and f, which, when
compared to the stereoplot of bedding, joints and cleavage,
makes clear what each set of discontinuties corresponds to.
For scanlines 1 - 4 (Figure 4b). in the hinge of the fold where
bedding max dips 86 towards 180, Cleavage SI NS, NW-SE
trend subvertical, three discontinuity sets are apparent, see Table
I:
Set I - bc joints, subhorizontal. spacing 0.25 m:
Set 2 - ac joints, subvertical EW trend, spacing 0.27 m: and
Set 3 - bedding surfaces spacing 0. I m.
By far, most of' the discontinuities belong to set three.
On the W limb across scanlines S - 9 (Figure 4d), three
discontinuity sets were distinguished, see Table 1:
Set I - ac joints, subvertical EW trend, spacing 0.27 m;
Set 2 - bedding surfaces, with spacing of 0.1 1 m. Common
discontinuities; and
Set 3 - bc joint or subhorizontal, spacing 0.04 m.
Four discontinuity sets are distinguished on the E limb of
syncline, along scanlines IO - 14 (Figure 40, these are:
Set I - bedding, 0.17 m spacing;
Set 2 - 'ac' joints, 0.12 m spacing;
Set 3 - subhorizontal, 0.17 m spacing; and
Set 4 - 'bc'joints , 0.12 m spacing
In comparing the discontinuities recorded across at site I . i t is
clear that in the hinge of the fold and for each limb, the main sets
of discontinuities arc prescnt. ie bedding, 'ac' and 'bc' joints. I t is
only on the west limb, where the orientation of bedding has
swung to a NW trend that there is an apparent additional set,
which may be considered subhorizontal. Generally for the hinge
and the east limb the ideal 'bc' joints plot close to a
subhorizontal normal (pole) position. As might bc expected the
spacing of bedding surfaces is considerably less than that of the
joints.

Site 2 - 300 HL Discontinuity data

Four discontinuity sets are identified on the W limb of a syncline I 3 Total 4uu
at site 2, 300KL (see Table 2 and Figure S). The position of site 2
SltC
i
is close to site I , being located on the N-extension of the fold in
Figure 4. As with the discontinuities identified at site I , similar
sets arc prescnt at site 2 , ie I a set of 'bc' joints, 2 a set of
subhorizontal joints, 3 a set parallel to bedding and 4 a set of 'ac'
joints. The limited number of discontinuities of each set makes it
difficult to make definitive conclusions regarding the set spacing,
although for this site the spacing of the subhorizontal set appears
less than for site I . Significantly for site 2 , a greater number of
'bc' joints have been recorded than at site I , this is because at site
I , these joints are close to horizontal and would be difficult to
access through the manual method adopted in this investigation.
The adoption of an automated scanning system should provide a
more representative sample. However this would still be
restricted by the fact that the degree of exposure is much greater
laterally, than vertically. Also the data collected is limited to a
south plunging syncline, with a NW dipping axial plane. A post
large degree by the geometry of the available surfaces and faces,
D2 dolerite dyke is located on the W side of the fold. At site 3
so as to provide a complete 3D representation of discontinuities.
the orientation of bedding and the fold axis is more t o the NE.
than apparent regionally, which might he a result of movement
Site 3 - 284 HL Discontinuity data on the NW-SE trending fault, present immcdiately to the S. Such
Situated to the N of a NW-SE trending strike slip fault, site 3, is faulting can easily complicate the regional correlation of
located at 28411L (Figures I and 6). Site 3 lies across a minor discontinuities.

276 Coolurn. Old. 14 - 17 May 2000 41h International Mining Geology Conference
 THE REGIONAL CONTROLS EXERTED ON R O C K DISCONTINUITIES
Site 2 structural data
0
- 10 20 30 metres
N
At site 3, discontinuities have been determined across a
macrofold, there is continual variation in the geometry of
bedding and associated discontinuities across the fold. It is for
this reason that there are a large number of discontinuities that
cannot be assigned, ie 54 per cent unassisted in Table 2. All the
sets represented are normal to the fold axis and can be designated
its either parallel (So) or normal to bedding (ac joints). The
assessment of discontinuities at site 3 indicates the need for
careful consideration of the regional and structural setting, and
the possible requirement to subdivide some survey sections into
homogeneous portions. However, where folds and to a lesser
extent faults, are present at the scale of the survey, this is not
always possible. It is for this reason that a knowledge based
system might provide a valuable adjunct to discontinuity
assessment.
Site 4 260 RL - Discontinuity dura
Site 4 is situated on the western limb of a syncline where
bedding dips moderately steeply to the east. Three main
discontinuity sets are recogniscd, either comprising shear joints
at a low angle t o bedding or bedding surfaces (Table 2 ) .
4th International Mining Geology Conference Coolurn. Old. 14 - 17 May 2M)o
Scanline position H
72
Bedding ...1..
Fold
Bench outline
+.
The way forward
Fuzzy logic was first described by Lofti Zadeh in the 1970s as a
means of modelling roughness (Zimmermann, 1996). Zadeh's
main contention was that, although probability theory is
appropriate for measuring randomness of information, it is
inappropriate for measuring the meaning of information. He
proposed a possibility theory as a measure of vagueness.
Whereas traditional logics express values as either 'true' or
'false', Zadeh's theory expresses lack of precision in a
quantitative fashion by introducing a set membership function
with real valucs between 0 - 1. Fuzzy set theory is concerned
with the rules for computing the combined possibilities over
expressions that each contain fuzzy variables. The theory has had
success in enabling the problem-solving system to find the rule
that most closely matched the input data. Initial investigations of
fuzzy logic dealt mainly with theoretical aspects, but since then
real applications have been developed for a wide range of
situations. Fuzzy controllers have been used in guiding ships
rudders. helping to maintain balance of free-moving loads.
problems of classification. pattern recognition. database
management. and in making motors more efficient.
211
C N WINSOR

Site 3 structural data

0 10 20 metes
I I 1

Scanline position H
72
Bedding L

Fold 4
zit
Dyke
Bench outline L
1
FIG6 - Structural plan and data from site 3.

General Fuzzy System Configuration

Rule-base
Knowledge-base

Pattern Real
Real Fuzzification Recognition Defuzzification
Inputs outputs
Int erference

I Working memory
I
FIG7 - General fuzzy sytcm configuation

Fuzzy logic provides an inference morphology that enables perception. Figure 7 illustrates a general fuzzy system, which
approximate human reasoning capabilities to be applied to involves:
intelligent systems, but it should not be considered ‘fuzzy’, but 1. the real input,
instead, to provide a mathematical strength to capture the
uncertainties associated with human cognitive processes like 2. its fuzzification,
thinking and reasoning. While the fuzzy theory provides an 3. the estabished rules,
inference mechanism under cognitive uncertainty, the artificial
neural networks offer invaluable advantages such as adaptation, 4. memory capability to enable pattern determination, and the
generalisation, learning and parallelism. Fuzzy logic is a tool for final stage
modelling uncertainties associated with human thinking and 5. the diminishing of the data fuzzyness.

270 Coolurn, Old, 14 - 17 May 2000 4th International Mining Geology Conference
 THE REGIONAL CONTROLS EXERTED ON ROCK DISCONTlNUITlES

Fuzzy set theory is the theory of graded concepts, which can Fuzzy theory uses: ‘IF THEN’ rules - these are rules that hold
be used to examine situations and phenomena which are not generally but not universally. A membership function is used to
readily analysed using classical, probability approaches, that is characterise fuzzy sets. Classical or Boolean logic is based on
where therc is a transition between member and nonmembership truth values or vocabulary operators which are defined using
(Pedrycc, 1995: Zimmermann. 1991, 1996). As noted by Kruse truth tables. Sets are crisply defined statements or propositions.
ti a / , (1993) a physical interpretation of a fuzzy set is the The following are a few rules that have been identified through
description of a vaguc object, cg a grey scale picture which must a literature review and could be incorporated into a rule based
be analysed by mathematical methods. Fuzzy logic uses the cxpett system. The rules used will define a membership function,
possibility approach to likcly situations, but focuses mainly on that can be used to establish fuzzy relations.
imprecision which is a common feature of human language
rather than a probability method. In geology where information General rules
about the third dimension is often not known with certainty, and
little meaningful data can be gathered in terms of the probability a. Discontinuity orientations are contmlled by factors: eg
of a certain situation arising, a theory which is based on history, lithology and topography.
possibility would appear a more realistic approach. A high b. Discontinuify spucing: with increasing development from:
degree of possibility docs not necessarily imply a high degree of
probability. Possibility is described (Zimmermann, 1996) as the I. random (log exponential),
upper bound of probability. 2. log normal, to
The traditional method to build up a model of a situation or 3. normal distributions.
data, is to use a crisp set method (ie a yes-no approach), where
there is no doubt about the values used in the model. There are c. Discontinuity length: a log normal distribution for
not many situations where such an approach is justified. In mesoscopic discontinuities (Hudson and Priest ( 1 983).
engineering an apparatus may measure a certain function very Fracture length may be proportional to layer thickness.
accurately but i t remains questionable how useful this data is and d. Discontinuity 1engtWdisplacement: displacement may be
how representative of the situation, in space - time. Generally, for proportional to fault length, the relationship may or may
most objects and data values therc exists a degree of vagueness not be linear, depending on the local rock properties.
or fuzziness in terms of meaning of stages or events, phenomena
or Statements (Zimmermann, 1996). In the realm of human
judgement and interpretation particularly, all decisions made are
-
Rules deformed areas rock porosity is known to
increase with deformation
jlczzy by nature and the linguistic terms used by humans are
fuzzy. An excellent example cxists in the area of geology, where, a. JoinUfold relations - Orientation in relation to folds
based on the available subsurface data a three dimensional model depends on the size and type of fold, unit thickness and
is made. This model must be fuzzy although based on the competency. Joints arc related to the fold (a, b, c: b is
available data. I f more data becomes available the macro 3D parallel to the fold axis, ab plane is the bedding plane), ie
model may changc either drastically or only to a minor extent. Hancock ( 1 985).
Terms like steeply dipping, coarse grained, strongly jointed and b. Areas of faulting.
shallowly plunging are by their nature fuzzy. Figure 8 illustrates
what membership function to describe the plunge of a fold Fault description:
various tcrms may have. These are the terms that geologists use 1, amplitude - dip and strike or dip direction,
to describe local situations. The only case in which geological 2. separation geometry,
situations might not be regarded as fuzzy, is where there is
complete exposure of the rock mass (ie 100 per cent). In such a 3. slip data,
case the features in the rock mass can be regarded as crisp. 4. patterns.
However. this is an unrealistic geological situation, as it is only
very rarely that the 3D dimension can be seen definitively. The Fractures commonly exhibit simple patterns.
common situation is the development of an interpretation of the Fault related spacing ‘rules’:
3D, based on the availablc evidence, such as drill hole or seismic 1. crack spacing decreases with increased applied stress;
information. Even with this information the interpretation
developed is just that, an interpretation. Neither the seismic or 2. microfracturing density increases with fault
drill hole data will provide complete coverage and so will exhibit displacement;
a degree of fuzziness or vagueness. Through fuzzy logic, an 3. microfracturing density is dependent on fault
approach is availablc to transfer vague linguistic terms such as displacement (Anders and Wiltschko. 1994). Fracture
those used by geologists, or areas of human judgement, density decreases in an exponential fashion away from
evaluation and decision making, into a strict mathematical a fault. Density increases with fault displacement
framework that can be used by engineers. (Friedman and Logan. 1970); and
4. spacing is independent of fault type - as the same
Fuzzy Set Example - Plunglng Folds spacing is recognised at the same distance from a
normal fault as that observed from a reverse fault.
c. Areas of joints/fractures - shear fracture characteristics
depend on lithology.
d. Rock properties - siffness: stiffer beds, those with >Youngs
modulus, exhibit closer discontinuities. Grain size: spacing
related to grain size, ie closer in finer grained rocks.
10 15 20 25 30 35 40
e. Foldfault relations basic rules:
FK;8 - The ineinhership functions to characterisc various terms used to I . folds are younger than folded rocks;
descrihe the plunge of folds 2. faults are younger than rocks they cut:

4th International Mining Geology Conference Coolurn, Old. 14 - 17 May 2000 279
C N WINSOK

3. an unconformity is younger than the underlying rock 9. Document investigation results.

and truncated structure;
4. metamorphism is younger than rocks i t affects; and
5. intrusive rocks are younger than the host.
f. Topographic relations - spacing may increase with distance
from the escarpment.
GENERAL METHOD TO PREDICT
DISCONTINUITIES IN OPEN CUT EXPOSURES
IN MULTIDEFORMED TERRAINS
The following discontinuity analysis method is suggested for
future investigations (after Winsor and Fowler, 1997):
1. Review the regional structural history, geometry and scale
of event. Determine the orientation. spacing and frequency
of macrofold and macrofault zones.
2.
Determine the geometry of any penetrative fabrics and
factors influencing their geometry. Undertake fabric
correlation and assignment of folds and lineations through
regional mapping and fabric correlation.
3. Identify the geometry of macrofaults and determine their
influence on penetrative fabrics.
4. Undertake structural analysis (as outlined by Marshak and
Mitra, 1988; Ragan, 1985) and determine the geometry,
scale and timing of macrofolding and related structures.
5. Make idealised discontinuity predictions in relation to the
macrostructure.
6. Carefully select positions for scanlines, in relation to
macrostructure.
7. Undertake scanline surveys and determine geometry and
spacing of discontinuities.
8. Compare discontinuity predictions with the results of
scanline surveys. If discrepancies exist, review the
macrostructural interpretation.
IO. Identify the controls exterted on discontinuities and attempt
forward predictions by building a fuzzy-neural network
such as that shown diagrammatically in Figure 9.
The future
An approach is required to incorporate descriptive geology and
inconclusive geological interpretations on the rock mass
Characteristics, the regional geology and the controls on
discontinuities, into a mathematical framework suitable for the
mining engineer. The wuy ahead could involve hand held or
vehicle mounted scanning systems, with direct data input into
computer system. These could incorporate regional geology
influences, establish the factors controlling discontinuity
characteristics, identify fractal and non fractal relationships and
make fuzzy logic - neural network, ‘expert’ pattern recognition
predictions throughout the rock mass. This would be based on
available data and incorporation of tools to determine the
controlling factors and extrapolate throughout the rock mass.
CONCLUSIONS
This investigation has shown that at the Iron Duke Deposit,
regional and local structural geology assessment can provide an
aid to discontinuity prediction, assisting in the preliminary stages
of site investigations, and there-after improving safety, efficiency
and communication between mine geologists and mining
engineers. As with other areas discontinuity characteristics are
controlled by regional folding, faulting and lithology, although
not always clearly defined. The benefits of incorporating
knowledge concerning the regional structure as part of
discontinuity surveys is apparent. Advantages exist in having a
strong overlap between mining engineers’ and geologists’ with
expertise in structural and mine geology, ie a ‘hack io the future ’
approach. Particularly with the development of automatic
scanning systems, there is a need to have a good understanding
of the regional geology and the controls on discontinuities. The
next major step in discontinuity analysis could be the
development of a knowledge based system to assess local

Fuzzy Neural Network

for dlscontlnulty predlctlonsIn variable settlngs

Previous Data/ f--

Preliminary Fabric
Identify
problem
interpretation
access all data
+ identificaticn
e identity controls

New data collected through + Identify any scale

systematic regional and local relationship
mapping and electronic scanning e fractal or nonfractal

Neural Pattern + Apply interpretation iterate Identify Use IF-THEN

network recognition through regional setting fabrics Fuzzy Rules
learning ‘controls’ identify benefit
phase

-
Identify regional Make
Neural Network setting and regional forward prediction
controls

FIG9 - Fuzzy neural network for discontinutity predictions in variable settings.

280 Coolurn, Qld. 14 - 17 May 2000 41h international Mining Geology Conference
 THE REGIONAL CONTROLS EXERTED ON ROCK DISCONTINUITIES
conditions and determine the regional controls and make rock
mass predictions ahead of mining operations. A fuzzy logic -
neural network approach is proposed as a way to meet this goal
and as such should be examined more closely.
ACKNOWLEDGEMENTS
BHP Steel Long Products division is acknowledged for allowing
publication of this article. The advice and assistance provided by
Professor Stephen D Priest, School of Engineering, University of
South Australia is appreciated. Alex Kavoukis and Baden Smith
of the Multimedia Services Section, FLC, University of South
Australia are thanked for preparing the diagrams.
REFERENCES
Anders, M H and Wiltschko. I) V. 1994. Microfracturing. palaeostrcss
and the growth of faults. J Strucr Geol. 161795-815,
Ashworth. K L. 1973. The origins of iron ores in the Middleback Ranges.
SA, Unpublished PhD thesis. University of Durham.
Barton. C C and La Pointe. P R, 199.5. Fractals in earth science (Plenum
Press).
Bell. T H and Duncan. A C, 1978. A rationalized and unified shorthand
terminology for lineations and fold axes in tectonites,
Tectono/~hysics.47:T I -TS.
Chiles. J P. 1988. Fractal and geostatistical methods for modcling of a
fracture network, Mathemufical Geology, 20:63 1-6.54.
Fietz. G. 1989. The geological structure and slope stability of the Iron
Duke iron ore deposit, unpublished Graduate Diplonia Thesis, South
Australian Institute of Technology, 71 p.
Freeman, J A and Skapura, D M, 1991. Neurul nefworlcr
(Addison-WesleyPublishing Company).
Hammah. R E and Curran. J H. 1998. Fuzzy cluster algorithms for
automatic identification of joint sets. Inf Journal Rock Mech Min
Science, 3.5:889-90.5.
Hancock, P L. 1985. Brittle microtectonics: principles and practise.
J Struvt Geol. 7:437-4.58.
Hobhs. H E, Means, W D and Williams, P F, 1976. An outline of
slrur~turalgeology. 57 I p (Wiley International:New York).
Kacewice. M, 1998. Fuzzy slope stability method, Mathematrcal
Geology, 19:757-767.
Kacewice, M, 1990. On the problem of fuzzy searching for hard
workability rocks in open pit mine exploration, Mathemaficnl
G e o l o ~ y2, 1~309-3
18.
Kruse, K. Gebhardt. J and Klawon. F, 1993. Foundations offuzzy syrtem.
26.5 p (J Wiley and Sons).
Marshak, S and Mitra, G. 1988. Basic mefhods ofslruclurul geology, 446
p (Prentice Hall).
4th International Mining Geology Conference Coolum. Old, 14 - 17 May 2000
Meyers, A G, Walker, D and Priest, S D. 1993. SCANEDIT and
SCANMASTER users manual - limited version. Internal report to
BHP Raw materials research group, unpublished, 32 p.
Nordlund, U, 1996. Formalizing geological knowledge - with an example
of modeling stratigraphy using fuzzy logic, J Sed Pet, 661689-698.
Parker. A J and Lemon, N M, 1982. Reconstruction of the early
Proterozoic stratigraphy of the Gawler Craton, South Australia,
Journal Geological Sociery ofAu.sfralia. 291221-238.
Priest. S D, 1993. Disconfinuify analysis ,for mck engineering, 473 p
(Chapman and Hall).
Ragan. D M, 198.5.Strucfurd geology 3rd ed. 393 p (John Wiley).
Ramsay, W R H and Vandenberg, A H M. 1986. Metallogeny and
tectonic development of the Tasman Foldbelt system in Victoria, Ore
Geohgy Review, 1 :2 13-257.
Schultz, R A. 1996. Relative scale and the strength and deformability of
rock masses, J Sfrucf Geol. 18:I 139-1 149.
Stapledon, D H, 1996. Keeping the 'CEO'; Why and How, in
Geomechunic.7 in a Changing world, 7fh A N Z conference in
Geomechunics. (Eds: M A Jaksa. W Skaggwa, and D A Cameron),
pp 3-18 (7th ANZ conference in Geomechanics, Adelaide July.
I9Y6).
Theologous. P, 1991. Stratigraphic and structural review of the Iron
Duchess low grade iron ore deposit, Middleback Ranges, South
Australia, 3rd year field project. SAIT.
Thomas. P R and Kor. F H, 1992. Development of a knowledge-based
system for ground investigation in rocks, Eurock '92. pp 1.59-162.
Winsor, C N, 1985. Interpretation of a set of faults across the hinge and a
limb of a large scale flexure in the Mount Isa fractures related to
folding, J Strucf Geol, 7:7 19-725.
Winsor. C N, 1995. The prediction of rock mass discontinuities in the
Clare Valley Syncline, based on geology interpretation. GSA,
SGTSG, 25-29:177-178.
Winsor, C N and Priest, S D, 1996. The controls exerted on rock
discontinuities - examples from the Adelaide Foldbelt, 7fh AN%
conference in Geamechunics: Geomechunics in a chunging world
(Fds: M B Jakasa ef a[),Adelaide, pp 240-24.5.
Winsor, C N and Fowler, T J, 1997. Discontinuity analysis in open cut
exposures - examples from selected central Victorian Sites, in
P roceedings Third Internurionol Mining Geology Co!ference. pp
141-146 (The Australasian Institute of Mining and Metallurgy:
Melbourne).
Winsor. C N. 1998. Thc controls exerted on discontinuitics in thc Broken
Hill Lead Lode. Australian Geomechnics. 33:82-90.
Yeates, G, 1980. Middleback Range Iron ore deposits, in Geology offhe
Mineral Deposits of Austrulia and Puupa New Guinea (Ed: F H
Hughes) pp 1045-1048 (The Australasian Institute of Mining and
Metallurgy: Melbourne).
Zimmermann. H J. 1996. Fuzzy set theary and its applications (Kluwe
Academic Press).
281
Coolum, Qld, 14 - 17 May 2000 4th International Mining Geology Conference
Pasminco Century Mine Open Pit Slope Design -
A Geotechnical Perspective
A J Dutton'
ABSTRACT
The geotechnical factors controlling the design of the open pit slopes of
the Pasminco Century Mine near h w n Hill, Queensland are presented
helow. Pasrninco Century is a stratiform shale hosted zinc deposit in the
Lawn Hill Formation that is overlain in part by the Thorntonia Limestone
Formation. Both the mineralisation and overhurden is located within a
competent rock mass such that intact rock strength and discontinuity
spacing is generally sufficient to prevent large-scale slope failure by
breakage through the rock mass. Rather, overall slope stability issues are
dominated by the major discontinuities within the rock mass.
The deposit is located in a structurally complex regime, it consists of a
synclinal basin which is truncated by easterly striking normal faults
through its centre and northern and southern limits and by an
unconformity on its eastern and western margins. Deposit geometry and
slop: stability is further complicated by small-scale folding. a pattem of
northeast and southeast striking subvertical faults and north easterly
dipping thrust faults with their associated fault emplaced blocks of Lawn
Hill Formation in the overburden.
The Inrge size of the deposit requires a staged mining approach with
the excavation of hoth final pit walls around the external sides of each
stage and interim pit walls along the internal boundaries between
adjacent stages. The deposit geometry and major discontinuities control
not only the final pit wall design but also interim wall location and
orientation. excavation sequence and in some stages the excavation
schedule. Two and three-dimensional limit equilibrium stability analyses
were conducted using both deterministic and probabilistic approaches to
determine appropriate pit wall design criteria and to select a suitable
excavation scqucnce and schedule.
INTRODUCTION
Geotechnical assessment for design of the Pasminco Century
Mine open pit slopes commenced in 1991 with the introduction
o f a basic gcotcchnical logging system and the establishment of a
database for all cored boreholes drilled on the deposit. The level
of geotechnical data collection and input into pit design
increased as the deposit investigation advanced into detailed
feasibility studies. Specific geotechnical boreholes were drilled
both over the deposit and around the margins to obtain rock mass
and discontinuity information in areas of proposed interim and
final pit walls. The borehole information was supplemented with
limited surface and bulk sample excavation mapping and a
program of laboratory testing. The assessment presented below
represents the state of knowledge at the completion of the
feasibility study.
GEOLOGICAL AND GEOTECHNICAL SETTING
The Century deposit is a stratiform shale hosted zinc, lead and
silver deposit within the Proterozoic Lawn Hill Formation.
Figure 1 presents the deposit layout and pertinent geological
features on a plan slice located approximately IS0 m below
ground surface. Deposit stratigraphy consists of a black
carbonaceous shale in the lower footwall overlain by a sequence
of interbedded black shale, grey siltstone and brown sideritic
siltstone beds. that contains the 40 - SO m thick orebody, this in
turn is overlain by Widdallion (Hangingwall) Sandstone unit and
Thorntonia (Cambrian) Limestone. Mineralisation occurs within
I. Senior Kock Mechanics Engineer. Golder Associates Ply Ltd, PO
Box 1734. Milton BC Qld 4064.
4th International Mining Geology Conference Coolum. Old, 14 -
three ore blocks located between 0 and 350 m below ground
surface. The main northern and southern blocks are separated by
the north dipping Pandoras Fault and bounded on the north by
the south dipping Nikki's Fault and on the south by the north
dipping Magazine Hill Fault. The east and west margins of the
northern and southern blocks terminate on an unconformity at
the base of the limestone unit. The smaller fault bounded eastern
block is located within the Termite Range Fault Zone, a major
regional structure that strikes to the southeast.
The deposit occurs in a structurally complex regime consisting
of a synclinal basin over which smaller scale folding and a
pattern of northeast and southeast striking subvertical normal and
reverse faults and northeast dipping thrust faults have been
superimposed. Bedding dip is generally shallow apart from the
eastern block and the west margin of the northern block. Deposit
geometry is further illustrated in Figure 2 as typical north - south
and east - west cross-sections. Large blocks of Lawn Hill
Formation material have been emplaced into the limestone by
thrust faulting. Irregular veins of carbonate breccia occur
throughout the Cambrian and Proterozoic units. The carbonate
breccia veins can be either conformable with or cut across
bedding. The vein contacts are often sheared suggesting the
carbonate breccia has intruded along pre-existing structures.
Further information on deposit geology can be found in Waltho
and Andrews (1993) and Waltho, Allnutt and Radojkovie (1993).
Geotechnical characteristics of the different lithological units
are summarised in Table I . Cambrian limestone is the most
structurally complex unit present. Thrust faulted Lawn Hill
Formation blocks within the limestone arc of variable
composition, size and bedding and contact orientation. Some of
the thrust blocks are in excess of 100 m thick and 200 m in plan
dimensions. A weathered zone up to SO m thick, ranging from
slightly to extremely weathered Proterozoic units and in some
places clay is present below the limestone. Thrust faulting
appears to have removed this weathered zone in some areas.
Bedding partings and joints are present throughout the deposit,
their orientation and surface characteristics varies between units
and location within a given unit. In general the bedding partings
arc up to I O m long, spaced up to 2 m apart with clean, planar,
smooth to rough surfaces. Joints arc typically up to 6 m long.
spaced up to 6 m apart with planar to wavy, smooth to rough,
clean surfaces. Laboratory direct shear tests indicate angle of
friction values between 30 and 40".
Faults and sheared zones with persistences in excess of 100 m
and widths in e x c e s ~of 0.5 m are present in all units. Fault
composition ranges from fragmented limestone, sandy clay,
carbonate breccia and cavities in the limestone to sheared shale,
siltstone. tuff and carbonate breccia in the Proterozoic units.
Laboratory tests indicate fault shear strengths in the order of zero
to 300 kPa cohesion and 19 to 45" angle of friction.
The other dominant major discontinuities present in the Lawn
Hill Formation are sheared zones conformable with bedding
referred to locally as Bedding Shears. The greatest frequency of
bedding shears occurs in the lower 40 m of the hangingwall shale
- siltstone. One of the hangingwall bedding shears is shown in
Figure 3. Bedding shears consist of sheared fissile black shale
and tuffaceous clay bands, typically up to 100 mm thick with
persistence in excess of I00 m. Laboratory testing found peak
shear strengths in the range zero to 30 kPa cohesion and 10 to
17 May 2000 283
 A J DUITON
FIG I - Plan slice through Century deposit at 1050 mRL.
30" angle of friction and residual shear strength angle of friction
values of 9 to 19". Figure 4 shows the distribution of residual
shear strength data.
The groundwater level prior to mining and pumping from
limestone dewatering bores was approximately 30 m below
ground surface.
SLOPE STABILITY ASSESSMENT
The feasibility study concentrated on assessing overall slope
stability for the proposed interim and final pit walls as the
geological and geotechnical models were not sufficiently
advanced to undertake a meaningful assessment of individual
batter stability. Two-dimensional limit equilibrium (program
S L O P W ) and finite difference numerical stress analysis
(program FLAC) techniques were used to assess the potential for
rock mass failure. Analysis results indicated that rock mass
strength is generally sufficient to prevent overall failure of the
proposed pit walls. Rock mass failure may be possible in a few
isolated narrow zones of fragmented limestone or highly sheared
black carbonaceous shale associated with faults subjected to high
groundwater pressure.
284 Coolurn. Qld. 14
These findings dictated that the stability assessment should be
based on identifying and analysing potential failure modes
involving movement along discontinuities. A three-dimensional
geological modelling package was used to determine potential
discontinuity controlled failure modes by visualising the
interaction between the geotechnical model and the proposed pit
walls. Emphasis was placed on studying the location, orientation
and persistence of faults, bedding shears and thrust block
contacts relative to the pit walls. An iterative approach was
adopted to identify potential failure modes and assess overall
slope stability for alternative pit excavation sequences and wall
positions. Two and three-dimensional limit equilibrium analyses
were undertaken using programs S L O P W and CLARA to
assess slope stability. Deterministic stability analyses using
laboratory testing derived discontinuity shear strength values
were undertaken using a minimum global factor of safety of 1.3
to design most of the slopes. A minimum factor of safety of 1.5
was used where a slope failure was liable to have a major adverse
economic impact, such as the loss of the haul road or sterilisation
of large quantities of ore. Figure 5 illustrates part of one of the
CLARA models that was used to assess stability of the Stage 5
pit west wall.
- 17 May 2000 4th International Mining Geology Conference
 PASMlNCO CENTURY MlNE OPEN PIT SLOPE DESIGN

very high to extremely high intact rock strength

3 - 4 joint sets of highly variable orientation, persistence and spacing arc I
I present
I faults composed of fragmented limestone, sandy clay, carbonate breccia

Hangingwall (HWD). Orehody and Footwall

(UFW)Shale-Siltstone
200 - 300 0

0
interbedded black shale, grey siltstone and brown sideritic siltstone
tuffaceous clay beds common in the hangingwall
high intact rock strength
II
.
.
. . . . - . 0 bedding partings and 2 - 3 joint sets prcsent
Black Carbonaceous Shale (BCS) > 250 0 slightly bedded black shale with thin tuffaceous clay and crushed shale ~

beds
0 highly sheared in the vicinity of the major faults
high intact rock strength
. bedding p-eings and 2 - 3.joint s~~s~.p~~srt

I . Intact rock strength categories are based on Australian Standard AS 1726 - 1993

Fici 2 - Typical cross-sections

4th International Mining Geology Conference Coolurn. Old, 14 - 17 May 2000 285
 A J IIUTTON

,-GROUND

\BEDDING
A -
SHEAR ALONG
POTENTIAL
FLOOR-' \ FAILURE BASE

Flci 3 - Bedding shear composed of tuffaceous clay in hangingwall

FIG5 - CLARA slope stability analysis model showing Stage 5 pit wcst
shale-siltstone.
wall and the potential failure surfaces.

- . .- -. . ... ... .. .... ... - _

..__.

RESIDUAL ANGLE OF FRICTION (degrees)

,._. .-
.___. __
jMNUMBER-PEXCENTAGEi _1
. ............... __ ___
.-. -. -..-... ..... __ .....- -...-. ___._
.--
.

Fici 4 - Bedding shear residual strength data.

A simplistic probabilistic assessment approach was also used

where bedding shears controlled slope stability. This was PIT SLOPE DESIGN
necessary because of the larce variation in shear strenath
obtained-from laboratory tests on bedding shears as illustratedin Owing to its large Planar extent, the Konomic extraction of the
~i~~~ 4, ne approach was based on multiple deposit requires mining to occur as a series of sequential stages
three-dimensional limit CLARA for each of pit advance. The position and location of interim stage walls
pit wall, schedule and failure surface geometry was based on economic conditions, mining practicalities and
to determine the shear residual angle of friction value geotechnical constraints. Many different excavation sequences
were evaluated before the sequence illustrated in Figure 6 was
which produces limiting equilibrium (factor of safety of 1.0).
adopted in the feasibility study. Figure shows the final pit
The probability of failure was then equated with the probability overlaid by the rim of the interim walls of the eight stage pit
of Occurrence of a bedding shear with a residual shear strength at shells, Stage mining in a relatively shallow
or below the value required to produce limiting equilibrium. A high-grade portion of the centre of the southern block. ~ i ~ i
uniform shear strength was assumed for the entire bedding shear. then proceeds to form final pit in stage2 before
Pit Walls Were designed On the basis that the probability Of heading north and then west into the northern block, with the
failure did not exceed five per cent. mining completed in the western portion of the southern block.

286 Coolurn. Old. 14 - 17 May 2000 41h International Mining Geology Conference
 ~

PASMINCO CENTURY MINE OPEN PIT SLOPE DESIGN

I I I

FIG6 - Plan of the ultimate pit and pit stage limits.

Geotechnical factors influencing stability and slope design
criteria for interim and final pit walls are summarised in Table 2.
Maximum inter-ramp slope angles, as measured from horizontal,
are given in Table 2. Equipment selection and economic
considerations dictated that interim pit walls be as steep as
possible and that the working bench heights be set at 16 m in
waste and 8 m in ore. Final pit wall batter height was set at 32 m,
produced by double benching, to maximise berm width to permit
equipment access along the final wall berms. Batter inclination is
controlled by joints and bedding partings. Where bedding dips
out of the wall at an inclination steeper than 15" from horizontal
the batters are to be excavated along bedding. Elsewhere batters
were designed at an inclination of 60" from horizontal. The 60"
batter inclination was based on reducing the frequency and size
of batter failures, as the frequency of joints dipping out of the
batter significantly increases above this inclination.
Final pit wall design is controlled by the location and
orientation of the deposit bounding faults to the north and south,
bedding orientation to the west and rock mass conditions to the
east. Interim pit wall design is controlled by the location and
orientation of major discontinuities together with the location of
the wall and the excavation schedule. Two of the interim walls,
the Stage I pit south wall and Stage 5 pit west wall required
considerable analysis to derive a wall location and excavation
schedule which meet both economic and geotechnical criteria.

4th International Mining Geology Conlerence Coolurn, Qld. 14 - 17 May 2000 287
 A J DUTTON

TABLE
2
Geotechnical factors affecting slope stability and wall design criteria.
... . ..-.

r --
Pits%- , . - Wa'l Ceotechnical factors controlling_w&design ,
Max hei@Q!!) . . SloPC an@?' (.? .......

i
I North I Thrust block bedding orientation and wedge failures , I30 SO
r- .... along fault and joint intersectionsl-- .__ - - -. .

I I
h L..... Wedge failures along fault and j o . i n e e c t i o n s ,
I Active-passive
-'
I --
I30 s!...... -.;
I South wedge failure along Magazine Hill Fault I 13s ! SO
I linked to bedding shears subjected to high groundwater !
! -. . .~ -pressure. ..
. -,--
. - ....
I I
I . West Wedge failures along fault and joint i n ! e r s e x . - - 1 -- 110 .. I so
N ! ! ! Wedge failures along fault and joint intersections.
.
.-- ... I60 ; ... 50 ........ !
i Ej.t I Planar and wedge failures along fault and joint 175 48
I
. (final) -. I intersections. Localised cavernous giound in CLS.. -. i .- I - -1
I
South Planar failure along Magazine Hill Fault (MF) which 175
.-I SO
i (final) dips SO - 60" north. Wall located along or behind the MF
I
~

! I

c. .+-.. ! .
.
. I footwall. ......
I
I . --... ............

3 1 North ' Thrust block bedding orientation and wedge failures I 240 50
and joint intersections. . . I . . - -
I
! Planar and wedge failures along fault and joint I I60
...... intersections. Lucalised cavernoEwground in CLS. i.-. .....

Central Planar failure along Pandoras Fault (PF) which dips 40"
. north. Wall located-a!ong or behind the PF footwall,
West Thrust block bedding orientation and wedge failures SO I
I
- .. ....i along-fault and joint intersections. -. .......
i
.............. ,

II planar
I Ea. t and wedge failures along fault and joint I I90 48 I!
I
- .... intep~gtions.Localised cavernous ground in C e : ! I __
Central I Planar failure along Pandoras Fault (PF) which dips 35 - 150 35 - 42
i
I

I
-- (final)
West
i 42' north. Wall lFated.@ongor behind the.PF fo@wall.
t---- .
Thrust block bedding orientation and wedge failures
'

.~ . . . . . . . . . . . .

270
I
I
........

50
..A

-
-..
- I ~
along fault and joint inters-echons ..-..- I I
5 FXt
(final)
Planar and wedge failures along fault and joint
intersections. Localised cavernous ground-.in-CLS.
.-
22s II 4R
-
I
I
I75 32 - 45 I

45" north. Wdl.!ocited- along o r h i n d the PF footwall.

Circular failure along bedding shears in either HWD or 290 SO
UFW. Groundwater depressurisation required. Wall
.. stabil.ity is sensitive to excavation schedule.
6 North Planar failure along Nikki's Fault (NF) which dips 44 -
(final) 60" south. Wall located along or behind the NF

,
hangingwall. Fragmented and cavernous CLS and
sheared BCS present which may require a coat of
I ....... - shotcrete.
-... -._ ... .......... . - .-
j Central Active-passive wedge failure along PF and bedding 1 IO so
shears in either HWD or UFW. Groundwater

L
I
(final)

E
:;
--
depressurisation required. Wall stability is sensitive to
excavation
- .~ schedule.

excavated along bedding. .

.................

Planar sliding along bedding partings and shcars in UFW

which dips 30 - 65" east. Individual batters in UFW to be
.. _. .....

Planar failure along Pandoras Falrlt (PF) which dips 35 -

-.

.-

48" north. Wall located along or behind the PF f o o h v a l l

z- 200 I
25 - 40

35 - 48
. .

I .-
I
~~

-7-
West Planar sliding along bedding partings and shears in UFW 330
i 25 - 40

I
' 8*-
I (final) which dips 30 - 65" east. Individual batters in U F W to be
excavated along bedding, ....
~. . .I-. 30 - 40
~ I
(final)
Planar failure along Magazine Hill Fault (MF) which
dips 30 - 40" north. Wall located along or behind the MF
215
II
I I - footwall.
~. . -. . . . -. . ..... ~- .
.

I I west
(final)
Planar sliding along bedding partings and shcars in UFW 130 I 25 - 35
I which dips 25 - 35" east. Individual batters in U F W to be
I
I... . excavated along bedding. .

I . The maximum inter-ramp slope angle, as measured from horizontal, is given

288 Coolurn. Old, 14 17 May 2000

~ 4th International Mining Geology Conference
 PASMINCO CENTURY MINE OPEN PIT SLOPE DESIGN

The potential Stage I pit south wall failure mode involved an

active - passive wedge mechanism with sliding down the
Magazine Hill Fault and outwards and upwards along a bedding
shear in the immediate hangingwall or footwall of the orebody.
14igh groundwater pressures are required along the potential
sliding surfaces to initiate failure. Subhorizontal drain holes were
recommended for the south wall to reduce the groundwater
pressure and thus the risk of failure.
The Stage 5 pit west wall has the potential for overall slope
failure by rotational movement along one or more bedding shears
in either the hangingwall or footwall of the orebody. Two failure
mechanism variants were considered based on the location and
orientation of the lateral and rear release surfaces. The first
variant used Pandoras Fault and Nikki's Fault linked to tension
cracks through the limestone to provide the release surfaces. The
intersection of a northeast striking fault (parallel to the Page
Creek Fault Zone) with a southeast striking fault (parallel to the FIG7 - Stage I pit south and west walls.
Termite Range Fault Zone) provided release surfaces in the
second variant. Stability analyses indicated that a combination of
groundwater depressurisation and advanced waste stripping in was considered in the feasibility study. This increased
the Stage 6 pit is required to maintain overall slope stability. complexity has affected the stability of individual batters rather
Orehody geometry and horizontal distances in cxccss of 400 m than the overall slope. The most notable batter instability being
from the pit wall to the orebody footwall preclude the use of associated with planar and wedge sliding failures along adversely
drain holes. The limestone dewatering bores along the eastern oriented joints, bedding and bedding shears within thrust blocks
margin of the deposit terminate at a higher level than the deepest exposed in the north wall of the Stage 1 pit.
point of the orebody and consequently cannot fully dewater the Limestone dewatering bores installed off the eastern margin of
Proterozoic units in the critical area. As such, groundwater the deposit have also depressurised the northeastern part of the
depressurisation will require the installation of pump wells in the Proterozoic units within the Stage 1 pit. However, groundwater
western portion of the orebody. Several different excavation pressure in the western portion of the south wall has been
schedules and wall positions were analysed in order to select a unaffected by this pumping. Consequently an array of
suitable design that met the maximum risk criterion. subhorizontal drain holes are being installed into the Stage I pit
south wall to assist with groundwater depressurisation and
INITIAL MINING EXPERIENCE maintenance of slope stability.
Mining of the Stage 1 pit commenced in May 1998. The current Periodic revision of the geotechnical model will be undertaken
mining sequence contains seven pit stages compared to the eight using up to date data from in-pit geotechnical mapping by
stages used in the feasibility study. Minor changes have been Pasminco Century Mine Ltd. purpose drilled geotechnical
made to the Stapes I , 2 and 3 pits compared to the feasibility boreholes and laboratory testing of discontinuity shear strength.
study. The major change has been the elimination of the Pit wall design, excavation sequence and schedule will he
feasibility study Stage 4 pit. The current pit Stages 4, 5 and 6 are optimised by conducting slope stability analyses using the
approximately equivalent to the pit Stages 5 , 6 and 7 shown in revised geotechnical model.
Figure 6. The excavation schedule has also changed as a result of
the pit stage changes. A geotechnical investigation program is ACKNOWLEDGEMENTS
currently under way to determine the suitability of these changes
The author gratefully acknowledges Pasminco Century Mine Ltd
and the extent of the groundwater depressurisation and advanced
for permission to publish this paper and Colder Associates' staff
waste stripping requirements.
for assistance in the preparation of this paper.
Geotechnical conditions encountered in the Stage I pit south
wall are illustrated in Figure 7. Mining has exposed a higher
level of structural complexity than that indicated in the feasibility REFERENCES
study from the widely spaced resource definition boreholes, Waltho, A E and Andrews. S J. 1993. The Century zinc - lead deposit,
particularly in the north and east walls of the Stage 1 pit. The northwest Queensland, in Proceedings The AuslMM Centenury
western boundary of the Termite Range Fault Zone extends west Conference. pp 41-61 (The Australasian Institute of Mining and
into the deposit rather than stopping at the eastern margin as was Metallurgy: Melbourne).
previously thought. Increased fracturing, weathering and variable Waltho. A E, Allnutt, S L and Radojkovic, A M. 1993. Geology of the
discontinuity orientations are associated with the Termite Range Century zinc deposit, northwest Queensland, in Proceedings World
Fault. Thrust faulted Lawn Hill Formation blocks are also present Zinc '93, pp 1 11-129 (The Australasian Institute of Mining and
Metallurgy. Melbourne).
with an increased frequency, extent and degree of contortion than

4th International Mining Geology Conference Coolurn. Old. 14 17 May 2000

~
289
290 -
Coolurn. Old. 14 17 May ZOO0 4th International Mining Geology Conference
Modelling Bulk Density - The Importance of Getting it Right
I T Lipton’
ABSTRACT
Tonnage and grade are the principal reported components of mineral
resource estimates but tonnage is a derivative of two more fundamental
estimates; volume and bulk density. Typically. most of the effort in a
rcsourcc estimation study is directed towards grade and volume, yet poor
application of bulk density data to resource models can result in
significant biases. The impact on tonnage estimates is easily recognised
but poor density estimates may also introduce subtle biases into the grade
csfimates.
Methods for measuring bulk density have been discussed previously.
This paper focuses on the manipulation of bulk density data and the
extension of bulk density from essentially point measurements to block
cstimatcs within resource models. Bulk density is a continuous,
geologically controlled. spatial variable and should be treated as such.
Issues such as combining data from multiple sources, sample support and
fhe interdependence of bulk density and grade estimates must be
resolved. The statistical and geostatistical techniques used for grade
estimation are, under the right circumstances, equally applicable to bulk
density. The importance of bulk density needs to be recognised. With
robust raw data and Correct estimation procedures, better estimates of
bulk density can be obtained and both local and global tonnage and grade
estimates can be improved.
INTRODUCTION
Literature on resource estimation is abundant. The great majority
of this published work focusses on the estimation of grade within
a volumetric framework. Almost as a footnote, volumes are
converted to tonnages by the implicit application of bulk density.
This balance is reflected in mining industry practice where,
typically. most of the effort in a resource estimation study is
directed towards grade and volume. Bulk density, a significant
multiplier in the estimation of tonnage, is often given little
attention, yet poor application of bulk density data to resource
models can result in significant biases. The impact on tonnage
estimates is easily recognised but poor density estimates may
also introduce subtle biases into the grade estimates.
Methods for measuring bulk density have been reviewed
previously (Lipton, 1997, in press). Bcvan (1993). Dadson
( 1 968) and Neuss ( 1998) have discussed the relationship between
bulk density and grade. This paper examines the manipulation of
bulk density data and the extension of bulk density from
essentially point measurements to block estimates within
resource models. The importance of treating bulk density as a
continuous, geologically controlled, spatial variable is discussed
and issues such as combining data from multiple sources, sample
support and the interdependence of bulk density arc examined
through a series of real and hypothetical examples.
DEFINITIONS
Density may be measured and expressed in a variety of ways.
The author reviewed many of the methods and compared some of
their strengths and weaknesses in an earlier paper (Lipton, 1997).
The present paper focuses on the application of these
measurements to resource models and hence resource estimates.
Thc density of a material is defined as the mass per unit
volume. In mining applications we arc interested in bulk density;
that is, the density of mineable volumes of rock, inclusive of
naturally occurring pore space or larger voids. The in situ bulk
I. MAuslMM. Principal Geologist, Mining and Resource Technology
l’ty Ltd. Level 3. Kirin Centre. 15 Ogilvie Road. Mt Pleasant WA
6153.
4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000
density includes the water naturally contained in the rock. This
measure is important for estimation of the tonnage of material to
be moved during mining. For resource estimates, however, we
require the dry bulk density, which is the dry mass of the
material divided by the in situ volume. Dry bulk density is used
because grades are expressed on a dry mass basis. Specific
gravity (SG) is a measurement .very similar to, but not strictly
synonymous with, density. It may differ significantly from bulk
density in rocks with large voids. It is common mining practice
to use the terms SG and density interchangeably but the author
prefers the explicit use of the term bulk density and its variants,
in situ bulk density and dry bulk density. For the remainder of
this paper the term bulk density will be used to refer to dry bulk
density.
VOLUMETRIC SUPPORT
Bulk density is a continuous geologically-controlled, spatial
variable that has a large impact on the estimates of the tonnage
and, in some cases, grade of a resource. Measurements of bulk
density are essentially made at points in 3 D space and must be
extrapolated throughout the volume of an orebody in much the
same manner as grade estimates. The level of detail or
sophistication of the estimates of bulk density within the resource
model will depend on the variability of bulk density within the
deposit and the volume, quality and spatial distribution of the
available data. Bulk density data should be subjected to the same
validation and statistical analysis as the grade variables. Extreme
values should be critically assessed to determine whether they
are natural features of the rock or are due to experimental error.
Density measurements are as prone to random or systematic
errors as are assay data and should be evaluated accordingly. As
well as removing erroneous values, it may be necessary to
remove extreme values from the data set, in order to avoid
biasing tonnage estimates.
In common with assay variables sampled at discrete locations,
the variance of measured bulk density values will depend on the
size of the sample. This is an example of Krige’s relationship, or
the volume-variance effect, that is seen when samples have
different statistical support. The variance of the bulk density of
small subsamples of core (say, I O cm pieces) will be higher than
the variance of one metre lengths of core. This is illustrated in
Figure I , which shows data from a nickel laterite deposit.
Seventy-six one-metre intervals of triple tube HQ-size core were
selected for bulk density measurement by two methods. Firstly,
the caliper method wasused on the complete one-metre lengths.
This involved measuring the .core diameter and core length,
calculating the core volume ‘and weighing the core after drying.
Secondly. a small subsample of core, usually from I O cm to
20 cm in length was selected from each metre interval and bulk
density was determined for these subsamples using a water
displacement method, after scaling them with wax. The scatter
plot comparing the two sets of results shows a conditional bias
arising from the much broader spread of values from the
subsamples than from the whole core samples. The plot also
shows an absolute bias, with the subsamples on average returning
higher values than the whole samples. To test for differences
resulting from the two methods of measuring bulk density rather
than differences between the two sets of samples, the bulk
density of a single set of core samples was measured using both
methods. The results were almost identical. demonstrating that
the absolute bias evident in Figure 1 was due to preferential
subsampling of more competent core and not errors in the
measurement technique.
291 I
 I T LIPTON

These ex: iples show that it is important that the diffcrences in

the statistic support of bulk density data are recognised,
2.5
particularly here sets of data derived from different sourccs are
being comp td. As with assay data, bulk density data sets with
mixed supp t should be processed to achieve uniform support.
For some d a. it may be appropriate to carry out a variance
adjustment, ich as an affine correction. The affine correction
reduces the iriance of a distribution without changing its mean,
by squashin all of the values towards the mean. This approach
may be use( for distributions that are not strongly skewed. The
L . -. I.--data in Figu 2 was adjusted by applying an affine correction of
variance to IC core data and an absolute correction to the
B geophysical ata to account for the moisture content of the drill
hole walls. e corrected data is shown in Figure 3. By applying
these correc ons to the larger geophysical data set i t was
possible to ombine the geophysical and core data for the
purposes of source estimation

0.5
2.5
0.5 I I .5 2
Dry Bulk Density by Caliper M e h d (Urn')
2.5
e I I
s /

P
Ftc; 1 - Comparison of dry bulk density from measured subsamples s
0
2.0
(water displacement mcfhod) versus dry bulk density measured from 1
m
I m core (caliper method). t
0

32. 1.5
r
The volume-variance relationship may also be observed when
comparing geophysical logging data with core measurements. t
Figure 2 shows a scatter plot of bulk density measured from
one-metre lengths of drill core using the caliper method, plotted
2
.z 1.0
73
against geophysical logging data sampled at points I O cm apart
P
and compositcd over the same one-metre intervals. The b
r
geophysical data shows a narrower spread than the core data, U

resulting in the conditional bias in the scatter plot. The lower 0.5
variance of the geophysical data arises because, for any given 0.5 1 .o 1.5 2.0 2.5
metre of drill hole, the gamma rays pass through a volume of Variance-adjusted Core Dry Bulk Density (Urn?

rock that is significantly larger than the volume of the core.

Absolute bias is again observed, in this case because the FIG3 - Sam lata as in Figure 2, after applying an affinecorrection of
geophysical values had not been fully corrected for the moisture variance an Eorrection for moisture content to the geophysical data.
contained in the drill hole wall.

IN'I RPOLATION OF BULK DENSITY

2.5 Having valic .ed the density data, removed extreme values and
resolved an! differences between data collected by different
methods, the lata can then be used to estimate the bulk density
within the re Nurce model. In many deposits that have only small
. concentratioi of dense minerals, such as many gold deposits,
variations in ulk density within the primary rock may be small
and spatiall) incorrelated (random). As with grade estimation,
there is no I nefit in generating local estimates that are more
detailed thar :he data is able to support so, in this case, it is
appropriate 1 apply the averages of the measured bulk density
I* /* 4 I I
values to eac rock type.
Weatherin and supergene alteration often result in significant
variations in ulk density that show spatial correlation. In many
cases, weatb ing progressively decreases the bulk density of
rocks due, fc xarnple, to the replacement of silicate minerals by
0.5 clays and tt development of increased pore space. In these
0.5 1.o 1.5 2.0 2.5 cases, if bull jensity is undersampled, it may be appropriate to
divide the re urce model into zones that represent the degree of
Core Dry Bulk Density (Urn))
weathering i apply average values to each zone. Commonly,
weathering f ects include remobilisation of the primary rock
components nd reprecipitation of minerals in structurally or
FIG2 - Scatter plot of dry bulk density of 1 m core samples versus chemically I ntrolled locations. This may lead to complex
dry bulk density from 1 m composite geophysical logs. patterns of bi c density distribution within the weathering profile
that are not a :quately modelled by the use of average values.

292 Coolurn, Qld. 14 - 17 May 2000 4th International Mining Geology Conference

From the preceding discussion it should be clear that bulk
density is a sparial variable that may display as much variability
or continuity as is shown by sample grades. As a spatial variable,
i t can be analysed using geostatistical techniques and it may be
estimated within a three-dimensional volume using the same
techniques ;ISare used to estimate grade. If structured variograms
can be obtained from the data. bulk density may be estimated by
kriging or other interpolation techniques. In this way geological
variations in an orcbody such as, for example, degree of
cementation may be accurately reflected in the resource model.
As with grade estimation, choice of estimation method and
parameters will depend on factors such as data spacing and the
skewness of the distribution.
I n deposits in which the element of economic interest occurs in
very small quantities. such as precious metals, there may he little
or no relationship between bulk density and grade. These two
variables can therefore be estimated independently. However, in
many deposits. the hulk density of the ore is directly related to
the mineral assemblage and hence is correlated to the grade. In
this case, grade and bulk density are dependent variables. If they
are treated, incorrectly, as independent variables serious metal
imbalances or biases may be introduced into the resource
osti mate.
Dependent relationships between bulk density and grade arc
common in massive sulphide deposits. This is expected, since the
ore minerals arc often of much higher density than the gangue
minerals in the host rock. This is illustrated by data from a
massive nickel sulphide deposit (Figure 4). The ore zone consists
essentially of an assemblage of pentlandite, pyrrhotite,
chalcopyrite occurring at the base of a serpentinised ultramafic
flow or tectonically mixed with a banded iron formation. Figure
4 shows the correlation between nickel grade and bulk density.
Independent estimation of nickel and bulk density with different
data sets, search parameters or interpolation weights will produce
models in which the relationship between grade and bulk density
observed in the samples is not preserved in the block estimates.
This will lead to local and possibly global bias in the estimates of
nickel metal content.
There are several alternative ways to approach the estimation
of grade and bulk density where they are dependent. These
methods arc not discussed in detail here but some of them are
summarised below.
5.0
I i
9 4.5 -
s DERIVATION OF BULK DENSITY FROM
-E
II
5 4.0 .-
n
r
rn
6 3.5 --
0
t bulk density of ore blocks to be estimated dircctly from ore block
.)
I' 3.0 -
I I
2.5 4 I
2.5 3.0 3.5 4.0 4.5
Predlctod Dry Bulk h n s l t y (Wrn3)
B ~ F ~ O S Mwe oia~kinatedae A I n m u w om
x becciaore Alldata -Lmr (An dah)
R c i 4 - Coniparison of bulk density estimated from normative minerals
and bulk density measured from drill core from a nickel sulphide deposit.
4th International Mining Geology Conference
MODELLING HULK DENSITY - THE IMPORTANCE OF GEITING IT RIGHT
Independent estimation of grade and density
If density and grade measurements are available at all points at
which there is a grade measurement a simple approach that may
be used is to estimate grade and density independently but with
identical interpolation parameters (search neighbourhood.
weights, etc). In this way the grade and density of a block are
estimated using the same set of data points and the same set of
weights. This approach implicitly assumes that the spatial
characteristics of grade and density are identical. Although this is
unlikely to be true, in many cases it will serve as a reasonable
first approximation. In practice, the more usual case is that only a
small proportion of samples with grade data also has density
data. In this case the relationship between grade and density
cannot be properly maintained with this approach and more
sophisticated techniques may be required.
Cokriging
Kriging is an estimation method that allocates weights to the
sample data points surrounding the point, or block, for which the
grade is to be estimated. The weights are derived from a model
of the spatial variability of the variable, known as a
semi-variogram. The weights vary as the sampling pattern
changes, so that kriging is a weighted moving average process.
The kriging system minimises the mean squared estimation error.
Cokriging is a variation of kriging in which two (or more)
variables arc used together to estimate each variable in turn. In
addition to the variograms of the individual variables, the
cross-variogram, which describes the spatial cross-covariance of
the two variables, is modelled. Cokriging can he used to estimate
grade and density together. where density is undersampled
compared to grade. With modern geostatistical software and
computer hardware, cokriging is a practical option that should be
considered where grade and density arc dependent variables.
Kriging with a trend
There are several kriging methods that allow a well-sampled
variable (ideally an exhaustively sampled variable) to be used to
improve the estimation of a sparsely sampled variable. These
methods include kriging with varying local means and kriging
with an external drift (Goovaerts, 1997). These methods are more
complex than cokriging and some of the conditions that must be
satisfied by the data may not be honoured by grade and density
data. They are mentioned here merely to illustratc the potential
for using well-sampled grade data to improve the local estimates
of sparsely sampled density data.
BLOCK GRADES
y - ~ 0.25
0.9301+
R'= 0.8317
In mineral deposits that have relatively simple mineral
assemblages and low porosity, the correlation between bulk
density and the grades may be sufficiently strong to permit the
grades. Formulae for estimating bulk density arc commonly
calculated using linear regression (single assay variable) or
multiple linear regression (multiple assay variables, such as Fe.
I Pb, Zn). However, where there is sufficient data, it is often
observed that the relationship between density and grade is
5.0
non-linear. For example, Bevan (1993) presented plots of specific
gravity against iron and against sulphur, that are best fitted by a
curve. As Revan demonstrated, a non-linear relationship between
density and assay values is the theoretically expected outcome.
Assays and other chemical analyses are usually expressed on a
weight percentage basis but, because density is expressed in
terms of volume, the relationship between grade and density is a
curve rather than a straight line.
Coolum. Old, 14 - 17 May 2000 293
I T LIPTON

If the density o f a sample or a block is to be estimated from

mineral proportions or assays, and these arc expressed on a
percentage mass basis. they should first be converted to a
percentage volume basis. A simple hypothetical example is
presented in Figure 5 to demonstrate this. The example shows
that the errors arising from incorrectly using a mass-weighted
calculation or a linear regression can be significant. Even at more
common grades, the difference between the correct
volume-weighted estimate and the incorrect mass-weighted
estimate is substantial. For example, if the lead content of the
blocks considered in Figure 5 is 25 per cent. the expected bulk
density of the sample is 2.58 t/m3 but the mass-weighted
calculation provides an erroneous prediction of 3.47 Urn3. This
would result in a 35 per cent overestimate of tonnage!
~.
I
-

/'
/ - .-/
I I

I
I
I 1 cu.m 1cu.m j I
Cerussite j 1 Gangue

Densi y = 2.0 t/cu.m

iI .

For the combined bloc

Total Mass = 6.55 t + 2.0 t = 8.55 t

Total Volume = 1 cu.m + 1 c u m = 2 c u m
Average Density = 8.55 t 1 2 c u m = 4.275 t/cu.m

And ....................
I

%Pb in cerussite = 77.5%

I
I
Mass of Pb in cerussite cube = 6.55 t/cu.m x 1 cu.m x 0.775 =
Mass of Pb in combined cubes = 5.07625 t
I Average Pb grade of combined cubes = (5.07625 t 18.55 t) x I O

I
I
I

I
,
Calculation by mass weighting:
% of cerussite (by mass) = %Pb I %Pb in cerussite = 59.37 / .775 = 76.6 Yo

Density =
I
So, what is the density of a rock containing 59.37% Pb as cerussite n a matrix with a
density of 2.0 t1cu.m ?

((76.6 * 6.55 t/cu.m) + (23.4 * 2.0 t/cu.rn)) / 100 = 1.48 t/cu.m WRONG !!!

Calculation by volume weighting

YOof cerussite (by volume) = (76.6 / 6.55 t/cu.m) / ((76.6 16. 5 t/cu.m) + (23.4 12.0 t/cu.m)) = 50 Yo
I

.-
.. ....- -. . -- .- .

FK;S - Illustration of
.i
Density = ((50 * 6.55 t/cu.m) + (50*2.0 t/cu.m)) I 100 = 4.27 t/cu.m CORRECT !!!
.

294 Coolum. Old. 14 - 17 May 2000 4th International Mining Geology Conference
 M0118LLING BULK DENSITY - THE IMPORTANCE OF GkTTING IT RIGHT

proportions of sphalerite, galena, pyrite, siderite, smithsonite and
cerussite and hence the bulk density of the samples. Comparison
of these results with the results of physical measurements o n core
samples and geophysical (density) logging showed that the
normative mineral method produced accurate estimates of bulk
density in this deposit.
A further example of these issues is provided by data from a
magnetite deposit in Western Australia. Figure 6 shows the
correlation between predicted density, estimated by volume
weighting
~- of a set of normative mineral estimates and bulk
density measured on the same intervals of drill core. A few
outliers on the plot indicate that some of the primary ore samples
are probably partially oxidised but the linear correlation between
the cstimates and measured values is strong. Mass weighting of
the same normative mineral estimates produces a different set of
bulk density estimates. Figure 7 shows a plot of the
mass-weighted estimates against the volume weighted estimates.
The error is about six per cent for the majority of the data points
(and the majority of the deposit). If the ore tonnage was
overestimated by six per cent. additional waste stripping or
development would be necessary to make up the shortfall and
this would add directly to operating costs.

4.50 1 I I I

h
m
E 4.00 --
2
-
>,
c
u)
E
3.50 - -
'0
?!
a
u)

3.00 - -

2.50 .I
2.50 3.00 3.50 4.00 4.50
Density estimated by volume weighting of normative mineral estimates (ffm3)

0 Oxide Ore W Primary Ore All primary -Linear (All primary)

Fit; 6 - Comparison o f bulk density estimated from nonnative minerals and bulk density measured from drill core from a magnctitc deposit

>,
w
I

u)

0
4.50
I I-- .-

-f 3.00
>"
2.50
2.50 3.00 3.50 4.00 4.50 5.00
Mass Weighted Dry Bulk Density Estimate (Um3)

Fici 7 - Comparison of mass-weighted and volume weighted bulk density estimates from a magnetite deposit.

4th International Mining Geology Conference Coolum, Qld. 14 - 17 May 2000 295
I T LIPTON
THE SAMPLE SUPPORT PROBLEM REVISITED
We have already seen how the variance of density data is affccted
by the volume in which i t is measured and how the density of
mineral o r block aggregates must be averaged on a
volume-weighted basis. Grades, on the other hand, are expressed
on a dry mass basis. The gcostatistical requirement of
maintaining equal sample support is typically achieved by
compositing samples to uniform sample lengths but this is only
strictly valid where the density of those composites, and hence
the mass, is uniform. In many base metal deposits this is not the
case.
How important is this? Consider a hypothetical set of four
composites of unit volume with the following Pb grades: onc pcr
cent, three per cent, five per cent and 20 per cent. Assuming, as
before, that the Pb occurs as cerrusite and the density of the
gangue is 2.0 Vm3, then the samples have mass of 2.06 I, 2.18 t,
2.29 t and 3.17 t respectively. The Pb contained in the composites
is therefore 0.0206 t, 0.0654 t, 0.115 t and 0.634 I, respectively.
The total metal in all four composites is therefore 0.835 t and the
average grade is 0.835/(2.06 + 2.1 8 + 2.29 + 3.17) or 8.6 per cent
Pb. The average grade of the four composites, weighted by
volume is only 7.2.5 per cent, a figure 16 per cent lower than the
correct grade. This is a significant local bias and may be
accompanied by a similar global bias.
For mineral deposits in which there is a large variation in
density, grade estimates should ideally be weighted by sample
mass. This is standard practice when calculating global tonnages
and grades; the global grade is calculated as the
tonnage-weighted average of the individual block grades.
Theoretically, i t appears that mass-wcighting should also be
implemented during the estimation of individual block grades
because these are estimated by averaging grades of the local
samples. Mass weighting can be readily achieved using the
grade*density product after compositing the samples to a
constant length or volume. Both the grade*density product and
density can then be interpolated as dependent variables into
computer block models. The block grades can then be
back-calculated by division.
The impact of density-weighting the individual block estimates
will vary depending on the variance of the grades of the samples
selected to estimate the block. I f the sample grades are all fairly
similar, density weighting will make little difference to the block
estimate. If there is a mixture of high-grade and low-grade
samples, density weighting will increase the average grade of the
block. It might therefore be expected that sediment-hosted
massive sulphide deposits, which tend to have strong lateral
grade continuity, would be less affected by density-weighting
than, for example. Mississippi Valley Type deposits which have
more irregular grade distributions. In a lead deposit examined by
the author, density weighting of the block estimates increased the
average grade of the deposit by 2.5 per cent.
Why, then, is the practice of density weighting uncommon?
There are perhaps three main reasons for this. Firstly, the density
of the drill samples is usually only determined for a small
proportion of the total assayed database. Although the density of
the samples can often be estimated from the sample grades, as
has been discussed previously, the estimates arc rarely able to
account for all the local variations in ore and gangue mineral
assemblages and porosity. The density estimates for the samples
may therefore include a high estimation error and it may be
undesirable to pass this error into the estimates of block grades.
Secondly. failure to weight the grades by mass will, where the
correlation between grade and density is positive, result in a
conservative estimate of grades. Thus, in most cases, weighting
grades on a volumetric basis (equal volumetric sample support)
poses little risk to the project. On the other hand, unnecessary
conservatism in resource estimation may contribute to lost
296 Coolurn. Qld. 14 - 17 May 2000
opportunitie or may hide the effects of mining problems such as
excessive di Jtion. Conservative or not. poor estimation practices
should be a\ lided.
Thirdly, t I ere is a suspicion that weighting grades by density
during bloc1 estimation and during summation of the blocks to
create a glc bal resource estimate may involve some 'double
counting', larticularly if density and grade are strongly
correlated. rhis is a question that requires some further
investigatior
In the cas of massive sulphide deposits that have been tested
entirely by c )re drilling, determining the density of every sample
in the depo: t may be possible and is desirable (Bevan. 1993).
Robust, ine: pensive procedures can be put in place to collect
bulk densit: data as a routine aspect of core drilling. The
densities cai then be used to improve the estimates of both the
tonnage and he grade of the deposit.
CONCLUSION
The importa ~ c ofe bulk density on resource estimates can clearly
be demonst ated on both empirical and theoretical grounds.
Although th re is a complex interplay between factors such as
primary min ral assemblage. alteration and porosity, bulk density
is a contini IUS, geologically controlled, spatial variablc. The
examples pn sented in this paper show that i t should be treated as
such and iss les such as combining data from multiple sources,
sample sup1 art and the interdependence of bulk density and
grade estim, tes must be resolved. Incorrect density estimation
can lead to iubstantial local and global errors in tonnage and
grade estim; tes. In some deposits, errors in tonnage estimates
arising from poor density estimates can easily be larger than
those which ire due to the inadequate definition of the geometry
of the oreboc Y.
Where de sity shows structured variations across the deposit,
the statistic 1 and gcostatistical techniques used for grade
estimation r ay be equally applicable to bulk density. In these
circumstancc s, the relationship between grade and density is
particularly nportant and it must be honoured by the estimation
method.
The two c !pects of combining bulk density data that are most
commonly o crlooked or misunderstood are as follows:
the rela onship between grade and density is non-linear
because grades are usually defined on a mass basis and
density i defined on a volume basis;
when a\ :raging grades. the grades should be weighted by
bulk der ;ity, a requirement easily achieved by working with
the gradc *density product.
Failure t c adhere to these principles can easily introduce
significant e rors into resource estimates.
Bulk den ity is the critical third component in resource
estimation a ter grade and volume. The importance of obtaining
accurate and representative bulk density measurements cannot bc
overstated. I iased density measurements are easily translated to
globally bia ed resource estimates. I f the density of the ore is
overestimate j, the mine will not achieve its designed
life-of-mine metal production. More importantly, the cost of
production \ ill increase because of the lower tonnage of ore, and
hence lowei revenue, per metre of development. If the bulk
density is u lknowingly underestimated, the mine may proceed
with a falst understanding of ore loss and dilution and may
therefore ov rlook opportunities to improve profitability.
Reliable I ulk density data can often be collected for only a
fraction o f t e cost of assaying. With proper analysis of the data
and correct stimation procedures, a better model of the variation
in bulk der iity across the deposit can be obtained. leading
directly to i nproved estimates of local and global tonnage and
grade.
41h International Mining Geology Conference
 MODELLING BULK DENSITY -THE IMPORTANCE OF GETTING IT KIGHT

ACKNO 'LEDGE 4ENTS
The author is indebted 10 several companies. including
'ranganyika Gold. for providing permission to publish data
presented in this paper.
REFERENCES
Bevan, P A. 1993. The weighting of assays and the importance of both
grade and specific gravity, CIM Bulleiiii. 86(97):88-90.
Dadson. A S. 1968. Ore estimates and specific gravity, in Ore resene
exifinuiioii trnd grude conirol. Spxial Volume 9, (The Canadian
Institute of Mining and Metallurgy).
Goovaerts, P, 1997. Geosiuiisiicr /or Nuiurul Resources Evuluution.
(Oxford University Press Inc).
Lipton. I T, 1997. A review of density determination methods for iron ore
deposit evaluation. in Proceedings Nutionul Conference on
I m n m k i n g Resources und Reserves Esiiiluriions. pp SI -56. (The
Australrtsian Institute of Mining and Metallurgy: Melbourne).
Lipron, I T, (in press). Measurement of Bulk Density for Resource
Estimation, in Minerul Resources unci Ore Reserves E.stiinuiion -
The AuslMM Guide io Good Pructice. (The Australasian Institute of
Mining and Metallurgy: Melbourne).
Lipton. I T. Shaw, W J and Waltho, A E, 1999. Characterisation of Ore
Types and Benefieiation Behaviour using Normative Minerals, in
Proceeding.r PACRlM '99. pp 427 - 433. (The Australasian Institute
of Mining and Metallurgy: Melbourne).

4th International Mining Geology Conference Coolum. Qld. 14 - 17 May 2000 297
298 Coolurn. Old. 14 - 17 May 2000 41h International Mining Geology Conference
New Technologies
The Expanding Role of Mine Geophysics
P K Fullagar’
ABSTRACT
Just as geophysics. in the form of 3D seismic and wireline logging, plays
a key role in petroleum reservoir management. so too will geophysics
play an important role in mining of coal. metals. and minerals in the 21”
century. The commercial and social imperatives driving greater use of
geophysics are reduced co increased revenues. and enhanced safety. In
short. superior utilisation of capital and management of risks.
In relatively undeformed sedimentary environments it is possible to
ndapt petroleum-style 3D reflection seismic to image mines. This has
k e n demonstrated most impressively in the Witwatersrand.
Anglo-American. for example, completed a $ I million 3D seismic survey
at Western Deeps in order to site a new $300 million shaft with
confidence. Likewise, 3D seismic has gained rapid acceptance at
Australian coal mines in recent years. Encouraged by these successes.
metalliferous mining companies are supporting research in Canada and
Australia. as well as South Africa. to adapt 3D seismic for more highly
structured. metamorphic terranes.
Because the mining industry is far more diverse than the petroleum
industry in terms of commodities and geological environments, 3D
seismic is not always cost-effective. A plethora of other geophysical
techniques can be applied, many of which are employed in mineral
exploration. Mine applications of geophysics differ from traditional
exploration applications in two main ways: time scales and length scales
are shorter, and boreholes are more plentiful. Borehole geophysical
techniques therefore play a more significant role, both for /egging and
itntr,ying. Logging systems detail the variations of in siru physical
properties down the borehole at scales measured in centimetres. while
geophysical imaging techniques can map features located tens or even
hundreds of metres from the sensors. While geologists tend to think of
boreholes in terms of chips and core. geophysicist. perceive them first
and foremost a.access paths for instruments.
Borehole logging has been employed at iron and coal mines for
decades, mainly to accurately define ore boundaries in delineation holes.
In base metal mines. Outokumpu implemented logging widely for
orchody delineation in percussion holes in the 1980s. The benefit was a
direct cost-saving. arising from substitution of core drilling with
percussion drilling plus borehole logging. The practice has since spread
to other companies. INCO, for example, defines nickel boundaries in
blast holes at Sudbury using conductivity logs. The benefits are in the
form of reduced dilution and enhanced ore recovery, flowing from a more
accurate mine model. Density, natural gamma radiation. magnetic
susceptibility, and conductivity are the principal metalliferous mine
logging parameters because they can be recorded in both dry and
water-filled holes.
Sonic velocity is the premier geotechnical logging parameter. given its
sensitivity to rock strength, stress. porosity, and degree of fracturing.
Sonic is recorded routinely in exploration and geotechnical holes at coal
mines. With the advent of slimline dipmeter. full waveform sonic, and
optical and acoustic scanner tools, the role of borehole logging in
geotechnical evaluations is expanding. Monitoring of slrain and
micro-seismic activity enhances safety during mine production.
While qualitative interpretation of logs is adequate for stratigraphic
identification or definition of boundaries, a wealth of quantitative
information, eg density, can be derived from properly calibrated,
repeatable geophysical logs. Moreover. geophysical logs can sometimes
serve as surrogates for geochemical assays, and not only for magnetite
and uranium. At Outokumpu’s Kemi chromite mine. for example,
gamma-gamma logging provides the basis for grade control. By reducing
reliance on assaying, three benefits can be realised: reduced reliance on
core drilling; lower core handling and assaying costs; and shorter
turn-around times.
Conventional downhole EM and borehole magnetics are used for
near-mine exploration. and for ground sterilisation. lnco has enjoyed
considerable success with borehole UTEM in the Sudhury Basin, for
1. CNTE, PO Box 6088. St Lucia Qld 4067 and Fullagar Geophysics
Ply Ltd. Level I . I Swann Road, Taringa Qld 4068.
4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000
example, and Geopeko has applied three-component borehole magnetics
successfully in the Tennant Creek area. Electrical techniques such as
applied potential and magnetometric resistivity (MMR) are also finding
application at mines. For higher resolution. borehole seismic. radio
imaging. and radar have been invoked, with varying degrees of success.
to delineate orebodies and map structures, or to geotechnically
characterise the rock mass and identify harxds. Success mapping nickel
sulphide shoots with borehole radar ha.. been reported by WMC at
Kambalda.
There are no universal geophysical panaceas, and each mine imposes
different geological. logistical, and economic constraints. Geophysics
will not always he cost-effective. However, the greatest single
impediment to expanded use of geophysics at mines has bmn the low
level of awareness of geophysics on the part of most mine geologists.
engineers, and managers and. equally, the limited understanding of mine
geology and engineering exhibited by the majority of geophysicists. This
myopia will be remembered as a 20‘h century affliction!
Blue Sky areas for mine geophysics in the next ten years include
integration of geophysical data acquisition with drilling. enhanced grade
estimation and rock mass characterisation. and the incorporation of
geophysical information into mine models using geostatistical
techniques. All these advances will he predicated on an expansion of
petrophysical knowledge.
INTRODUCTION
Geophysical methods can be classified into two broad categories:
borehole logging, for determination of in situ physical properties
in the immediately vicinity of a drill hole; and geophysical
imaging, for mapping features located tens or even hundreds of
metres from the sensors. Imaging as uscd here encompasses all
the methods applied routinely in exploration, eg seismic,
magnetics, electromagnetics (EM), gravity, as well as the high
resolution techniques, namely ground probing radar, cross-hole
seismic, and radio imaging. Imaging techniques ‘see’ through
rock; logging data substitute for drill core.
Geophysical techniques are employed extensively in
exploration for virtually all commodities. 31) reflection seismic
and wireline logging have now become an integral component of
petroleum reservoir characterisation (McWhorter and Torguson,
1995) and production monitoring (Key, Pederson and Smith,
1998). Likewise, the role of geophysics is expanding in mining,
and with good reason. Excluding commodity price and sovereign
risk, uncertainty about ore geometry and rock quality arc the
principal threats to mine performance. In mine establishment,
major capital expenditures are committed on the basis of sparse
information. Likewise during extraction, local inaccuracies in
mine models can cause unexpected and costly production
shortfalls, through lost ore or bad ground. When suitable
physical contrasts exist. geophysics has the potential to reduce
these risks by mapping the orebody and its environment, from
the surface, from underground development, or from boreholes.
Geophysics is well accepted at coal mines: wireline logging is
recorded routinely (Davies, 1992), 2D seismic and radio imaging
arc established methods, and 3D seismic is becoming more
common. However, metalliferous mines as a whole have been
slower to embrace geophysics. This relative tardiness can be
attributed in part to the greater variety, and often complexity, of
geological environments at metalliferous mines. Other factors are
‘cultural’ rather than technical (Mutton, 1994). including the
historical divisions between exploration, feasibility, and
production departments. Nevertheless, 3D seismic is proving its
worth at Witwatersrand gold mines, and several major
metalliferous mining companies have already successfully
integrated borehole logging into their mining operations. The
301
 P K FULLAGAK

scale of the economic benefit is often difficult to quantify, not SI i ml ine xehole logging probes are available from a number
only because companies are often reluctant to share their of manufac rers to measure a wide range of physical properties
commercial information, but also because the benefits are (eg Fallon Fullagar and Sheard, 1997; Firth, 1999). Some
relative to 'would have been' scenarios and therefore defy systems, SI h as the Outokumpu OMSLOGG, have stiffened
calculation. In million tonne per annum base metal operations the cable to p nit logging of holes oriented upwards (Figure I ) .
economic benefit can run to millions of dollars per year (King, The princil applications of borehole logging in minerals mines
Fullagar and Lamontagne, 1994; Williams, 1996). sufficient to are:
drive an operation down the cost curve, and maintain its
competitive position, I. geolo cal interpretation (hole-to-hole correlation);
Geophysical techniques can be applied at almost any scale and 2. ore bc ndary definition;
at any stage of a mining operation. Four broad classes of
application can be defined: 3. grade itimation; and
orehody delineation. to maximise ore recovery and minimise 4. geotel nical charactcrisation of the rock mass.
I
I dilution;
rock mass cliaracterisution, to guarantee safety and to
optimise mine design;
exploration and ground sterilisation (eg King, 1996;
Kowalczyk, Logan and Campbell, 1996); and
erivirorimmtal monitoring (eg King and Pesowski, 1993;
Rutley and Fallon, 2000).
In this paper geophysical orebody delineation and rock mass
charactcrisation will be briefly reviewed, with special emphasis
on metalliferous mines.
Increased utilisation of proven techniques such as 31) seismic
and conventional downhole EM at mines is assured. Likewise,
utilisation of borehole logging is poised to grow, especially as
new tools and interpretational procedures enhance the reliability
of pctrophysical grade prediction and rock mass characterisation.
The need to re-access the drill hole, which is the main limitation
of logging, could be alleviated to some extent by the advent of
slimline logging-while-drilling technology. The future of high
resolution in-mine seismic, radar, and radio imaging is less
certain. Substantial funding is required for development of
instrumentation which is both sophisticated and robust, in order
to move beyond technical successes (Wedepohl et al, 1998).
Reliable and cost-effective imaging tools are required in order to
deliver a performance benefit. In the interpretational arena there
is a need for integration of geological, geophysical, and
geostatistical modelling. both predicated on and leading to a
superior understanding of the underlying petrophysics (Fullagar
ct al, 1996a).

OVERVIEW OF GEOPHYSICAL TECHNIQUES

Fic; I - Un, rground OMS-logg density logging at the Txa zinc mine.
Rock property determination and borehole logging
The physical properties of rocks arc the foundation of
geophysics. Petrophysical properties can be measured either for
discrete rock samples in a laboratory or continuously in situ via For geol
borehole logging. Petrophysical laboratory analysis of qualitative
representative ore and host rock samples is highly desirable prior borehole lo
to collecting geophysical data at a mine site (Fallon, Fullagar and be it for o
Sheard, 1997). Electrical and electromagnetic survey design and petrophysic
equipment selection is especially problematical without Absolute
pctrophysical orientation, given that conductivity often varies probe re;
over several orders of magnitude in metalliferous mines. gamma-gar
Exploration geophysics relies primarily on the existence of at governm
contrasts in rock properties, but in mines absolute properties are Ottawa, w
materials w
often important. In particular, knowledge of rock density and
strength has always been a necessity at mines, for ore reserve Core-has
estimation and mine design respectively. Density can be of the COI
measured routinely on samples submitted for geochemical assay. laboratory,
Sampling for rock strength testing tends to favour more Geophys
competent intervals, sometimes raising concerns as to the sampling i
representivity of the results. The potential for continuous in situ therefore b
density and rock strength information from calibrated borehole are recorde
logging is well rccognised at coal mines, but has been largely means for
ignored at metalliferous mines. data sets.
Ireland (photo by G N Fallon).
$a1 interpretation and ore boundary definition,
terpretation of logs is often adequate. If, however,
arc to be used as a basis for quantitative modelling,
reserve determination or geomechanical analysis,
calibration of probe responses is essential.
:alibration establishes the relationship between
ings and physical standards, cg between
na response and density. This is usually performed
it facilities, such as the GSC radiometric test site in
:re holes have been drilled through synthetic
i prescribed properties (Killeen. 1986).
/ calibration relates a probe response to a property
(from the same location) as determined in a
; sonic velocity to UCS, or conductivity to grade.
11 borehole logs are usually very detailed, with
erval of a few centimetres. Data volumes can
relatively large, especially when several parameters
in each hole. Computer-aided interpretation offers a
hcient processing of large multi-parameter logging
utomated interpretation of petrophysical logs is

302 Coolurn, Old. 14 - 17 May 2000 4th InternationalMining Geology Conference

 THE EXPANDING ROLE OF MINE GEOPHYSICS

commonplace in the pctrolcum and coal industries (eg Raldwin
et (11, 1990; Coudert, Frappa and Arias, 1994; Zhang, Salisch,
and McPherson, 1999) and has been addressed in metalliferous
environments in a number of rccent studies, eg Urbancic and
Bailey ( 1988); Kassenaar ( I99 1 ); Wanstedt ( 1 992); Emilsson
( 1993): Nilsson (1995); McCreary and Wanstedt (1995);
Fullagar. Zhou and Fallon (1999). A wide range of techniques
has been examined, including application of simple 'if' tests,
principal component analysis, factor analysis, discriminant
analysis, neural networks, and multi-variate generalisation of
scatterplot interpretation. Some of these auto-interpretation
algorithms are now commercially available, eg LogTrans
(Figure 2).

Geology lnterp Gamma Density Caliper Fe AL203 SI02 ASR

Log LogTrans (API) (glcc) (in) (%) (%) (%)
o m P N
- a
o m
0)
0 0
4
0 0
A
m o -
ALL-WAS

WCH-ALU
0

GVU-SIL

GVU-HG

GVU-HG

GVL-ALU
~ GVL-HG
......

Pr
. ......
......
.....
..._..
.....
_....
.....
.....
.....
.....

i - l

Flc; 2 - Comparison between the geological log and an automated interpretation. based on density and natural gamma logs and geochemical assays.
or a delineation hole at the Yandicoogina pisolitic placer iron deposit, Western Australia. ASR is the alumindsilica ratio. Stratigraphic order was
enforced during auto-interpretation using program LogTrans (Fullagar, Zhou and Fallon, 1999). Iron ore is confined to the GVU and GVL horizons
(per favour Hamersley Iron Ry Ltd).

4th International Mining Geology Conference Coolurn. Qld, 14 - 17 May 2000 303
P K FULLAGAR
Data precision is a pre-requisite for any form of quantitative
interpretation. Precision checks are essential at a routine
operational level to ensure that the logging equipment is
functioning normally. This can k achieved via procedures which
allow the operator to monitor the consistency of instrumental
performance (Fallon and Fullagar, 1995). A simple example of a
precision check is zeroing a conductivity probc in air.
Geophysical imaging
A variety of geophysical techniques. including magnetics and
conventional EM. is available for detecting and delineating
features at ranges up to hundreds of metres from the sensors. The
effective radius of investigation and achievable resolution are
depcndent on the technique adopted, the survey specifications,
the local rock properties, and ambient noise conditions.
Specifications for mine survcys are normally more stringent than
those for exploration surveys in terms of resolution, timing, noise
suppression, and access (Williams, 1996). Data can be collected
on or above the original ground surface, in open pits, or
underground from drives and boreholes in a variety of survey
configurations: single hole, hole to hole, hole to surface, drive to
drive, etc.
Conventional downholc EM and borehole magnetics are
employed for in-mine exploration and ground sterilisation. eg
King ( I 096); Jackson, Fallon and Bishop ( I 996); Kowalczyk,
Logan and Campbell ( 1996); Turner et a1 ( I 996). The advent of
wideband multi-channel acquisition systems such as MIMDAS
has sharpened the effective resolution and expanded the depth of
penetration of EM and electrical methods. The focus in this
paper, however, will be on the higher resolution imaging
techniques required for orebody delineation and rock mass
charactcrisation.
Seismic is inherently attractive for both exploration and
in-mine production applications because, in principle, it can
provide resolution of a few metres over ranges from tens to
hundreds of metres. In addition, an enormous wealth of seismic
knowledge. expertise, and technology has been developed in the
petroleum industry, much of which can be adapted for mine
applications. The use of surface seismic at both metalliferous and
coal mines is expanding rapidly.
Undcrground seismic has k e n applied experimentally
(Grecnhalgh and Mason, 1997). Despite technical successes,
seismic underground is relatively slow and expensive, principally
because of the need to mechanically couple both source and
receiver to bedrock. Hydrophones can be used in water-filled
holes, but at the expense of directional information.
Ground penetrating radar (GPR) offers comparable resolution
to seismic, but usually over a limited range. Salt mines are an
exception, where radar is effective over long ranges (Eisenburgcr,
Sender and Thierbach, 1993). Surface GPR is used to define
shallow ore boundaries for certain alluvial or lateritic deposits.
Underground. radar data can be collected more readily than
seismic, and there is no restriction to water-filled holes for
cross-hole imaging. Massive sulphide orebodies in resistive host
rocks are an cxccllent target i n principle, behaving as almost
perfect radar reflectors. This has provided the rationale for the
on-going borehole radar trials by WMC for delineation of nickel
shoots at Kambalda, Western Australia (Liu et al, 1998).
However, minor amounts of disseminated sulphide in the host
rocks can significantly attenuate radar signals, severely reducing
its effective range (Fullagar and Livelybrooks, 1994).
Reflection techniques require access to a single hole or
roadway only. Access on at least two sides is necessary for
transmission imaging: the spatial distribution of a physical
property (eg velocity, attenuation, resistivity) is mapped by
transmitting signals from one hole or opcning to another.
Tomographic techniques similar to those used in medicine are
commonly employed to construct images from the data.
Resolution is generally lower than for reflection surveys.
304 Coolurn. Qld. 14
Radio qucncy electromagnetic (KFEM) survcys. for
example, usually undertaken in a cross-hole configuration.
The RFl method is intermediate in range and resolution
betwcen ivcntional EM exploration methods and ground
penetratii idar. In principle, therefore. KFEM has the potential
to play a : in both exploration and mining. Conductive zones
betwcen holes attenuate thc radio signals, and massive
sulphide ies can give rise to ‘radio shadows’. The technique
1
has becn i plcmented successfully in coal and potash mines
(Vozoff et , 1993; McGaughey and Stolarczyk, 1991). and is
under inves gation in metalliferous mines in Australia (Mutton.
1997; Zho , Fullagar and Fallon, 1998). South Africa
(Wedepohl, 993; Campbell, 1994). and Canada (Fullagar et a/.
I996b; Stev( ns and Redko. 2000).
OREBODY DELINEATION
Introducti a
An accuratc knowledge of orebody geometry and grade is
fundamental to mining. The examples bclow illustrate how
geophysics an contribute to cost-effective and timely orebody
1
delineation. 3nd hence improve the economic performance of
mines. Morc precise orebody delineation can also translate into
less environ nental impact. Keduccd dilution, for cxample. not
only increa. 2s the head grade but also reduces the energy
expended b iuling, crushing, and treating waste rock, and
minimises tt ;volume of tailings.
Ore bound a r y definition
Defining the limits of mineralisation to high accuracy is the most
common apl lication of borehole logging in mines. Geophysical
definition 01 mineralisation boundaries is cost-effective because
the net cos of drilling and logging percussion or reverse
circulation oles is less (by about $30/m) than the cost of
diamond dn ling. The economic benefit may be rcalised as a
direct drill ost-saving (if the same total meterage is drilled),
andor as an improvement in mine performance flowing from a
higher numl er of orebody drill intercepts (if more holes are
drilled for t le same net expenditure on drilling). These more
economical Jrilling techniques do have their limitations, but
these can o ten be largely overcome by the logging (Fallon,
Fullagar and Sheard, 1907).
In some c ses the advent of logging can alter the economics of
a resource, : nd hence add to ore reserves and mine revenue. At
Zinkgruvan, Sweden, for example, borehole logging was a
crucial com lonent in the modification of a traditional mining
method, und :rtaken to permit economic extraction of an isolated
ore lens adj, cent to the main lode (L Malmstrom, pers comm).
The ore lens was not sufficiently large to support the cost of the
additional I evelopment which would normally have been
required for conventional sublevel stoping. Nor was the grade
sufficiently iigh to tolerate significant dilution. By logging
cablebolt hc es drilled from the existing development drift. the
ore boundar ts were defined very accurately, permitting precise
placement ( ‘ charges to minimise overbreak. More than one
petrophy sic: parameter was required for reliable discrimination
of ore fron waste (Wanstedt, 1992): the ore was uniquely
c haracterisec by low susceptibility. high conductivity, and high
densi ty.
Blast hole can be logged to refine charge placement, size, and
sequencing. King, Fullagar and Lamontagne (1994) described
the use of s mple conductivity probes to discriminate ore from
waste in bl; jt holes in vertical retreat mining stopes at Stobie
Mine, Sudl ury. The economic bcnefit was approximately
$C20M in 1 193, comprised of increased revenue from enhanced
ore recover) as well as cost-savings from reduced dilution. The
conductivity log is interpreted in a binary fashion: ‘ore’ for
- 17 May 2000 41h International Mining Geology Conference
 THE EXPANDING ROLE OF MINE GEOPHYSICS

responses above a previously-determined cutoff value. The
implementation of borehole logging for ore boundary delineation
need not be expensive or complicated: the system used at Stobie
can he carried by one person, and the original purchase price of
the conductivity probes was $C6000.
High resolution geophysical imaging is used for remote ore
boundary definition. Radar is employed in underground tunnels
in the Witwatersrand to accurately map pyritic auriferous reefs at
ranges up to 30 m (Campbell, 1994). Detailed geophysical ore
delineation from underground development is especially
attractive for deeper reefs, given that its position is
under-sampled for any affordable surface drill hole spacing. For
the same reason, borehole radar has been applied by WMC at
Kamblada to delineate nickel shoots (Liu et al, 1998).
Seismic tomography has been performed in a number of
metalliferous mines in Sweden (Gustavsson et al. 1986). Canada
(McGaughey, 1990; Wong, 1997). USA (Thill et al. 1992), and
Australia (Cao and Greenhalgh, 199.5; Luo. Hatherly and Fallon,
1998. Fallon, Newland and Nihill, 1999). Cross-hole seismic
reflections, as well as first arrivals, are interpreted in the
Witwatersrand (Wedepohl et (11, 1998). The economic rationale
for one specific application of seismic tomography was detailed
by Dyer and Fawcett ( I 994). in the context of exploration and
delineation of chromite pods at Shurugwi. Zimbabwe. Shooting
detonators from mine drives, their survey successfully defined a
pod, outlined previously from drilling. as a high velocity zone
and also highlighted a low velocity talcose block in the
talc-carbonate host. Tomographic definition was achieved for 30
per cent of the funds and in nine per cent of the time expended
for conventional drill definition. While this comparison takes no
account of the importance of the grade information provided by
the drilling, it nonetheless serves to establish the viability of
seismic tomography for exploration and delineation from drifts.
Ore continuity
Recognition of ore disruptions, due to pinch-outs, fault
displacements, or intrusives, is vital for mine planning.
The deeper the ore, the stronger the case for all-of-mine
imaging, given the prohibitive cost of closely spaced exploration
drilling. In relatively undeformed sedimentary environments,
petroleum style 3D seismic can be applied. In the Witwatersrand
detailed structural models of auriferous reefs have been produced
using 3D seismic (Campbell, 1994). Confidence in the
seismic-based model at South Deep is such that i t is used as the
basis for siting mine pillars. Similarly, Anglo-American have
achieved spectacular results with 3D seismic over a Western
Deeps gold mine (Pretorius, Trewick and Irons, 1997).
Stratigraphy and structure were 'laid bare' to depths of -2 km.
The Ventersdorp Contact Reef (VCR), the uppermost auriferous
unit, lies on a major velocity contrast at the contact between
lavas (-6300 d s ) and quartzites (-5800 d s ) , and therefore
gives rise to a strong reflection. Faults with throws of IS m or
more can be traced at depths of 1 km (Figure 3). An area of
300 km2 was imaged at a cost of $1 million. This allowed a new
shaft, representing an investment of $300 million, to be sited
with confidence.

' DEPM BELOW

W A G E

.. _.0

.
.
:
4uan
\

I.__
. . .
. . . . . . . . . . . . . . . .
................... .......... ..
. . . . . . .- .. ..-.. . ......... ......... .... __. . . . . . . . . . . . . ._.._
. .. . .- .. .-. ..
0
, _
'" m
WOR&& SUiE

Flc; 3 - 3D seismic definition of Ventersdorp Contact Reef at Vaals Reef Mine. South Africa (after Pretorius, Trewick and Irons, 1997).

4th International Mining Geology Conference Coolum, Q!d. 14 - 17 May 2000 305
 P K FULLAGAR
Similarly. impressive 3D seismic images of coal mines have
been produced in Australia (Zhou and Hathcrly, 2000).
Experimental 3D seismic surveys in Canada, in the Sudbury
Hasin (Milkereit ef nl, 1997), and at Matagami (Adam et a/,
1997). have demonstrated the technical feasibility of the method
for near-mine exploration for base metal sulphide orcbodies in
Proterzoic and more complex Archean terranes. Conventional 2D
seismic still has its place. and is of course easier to justify
financially (Spencer et nl. 1993; Stevenson and Durrheim, 1997).
Vertical seismic profiling (VSP). involving surface shots and
downhole receivers. is appropriate if targets are steeply dipping.
Placer has employed VSP successfully at Getchell, Nevada. to
map near-vertical gold-bearing structures to more than 1 km
I depth at ranges in excess of 100 m from the receiver borehole
(P Kowalczyk, pers comm).
Establishing continuity of ore lenses can be crucial during both
delineation and production phases. For conductive ores in
resistive hosts, electrical methods may provide a straightforward
indication of continuity. In 1982 WMC employed
mise-a-la-masse to establish continuity of nickel shoots at Blair,
I Western Australia (Williams, 1996). lnco has applied a
cross-hole resistance technique in the footwall at Levack (North
Range, Sudbury) to test the continuity and establish the plunge of
nickel-copper lenses (A King, pcrs comm). Interest in application
of other electrical techniques in and around mines is also
increasing, including resistivity tomography (Greenhalgh and
Bing. 1997). mise-a-la-masse (Mwenifumbo, 1997) and borehole
magnetometric resistivity (Bishop, 2000).
Radio frequency tomography has been successfully applied for
nickel-sulphide ore boundary definition at Sudbury (Fullagar et
al, 1996b; Stevens and Kedko, 2000) and for detection of copper
ore lenses missed by 40 m-spaced evaluation drilling at the CSA
Mine, Cobar, New South Wales (Thomson el al, 1995). In both
of these cases the host lithology was very resistive and the ore
was highly conductive, providing an optimal geoelcctrical
environment. More generally, metalliferous mineralisation is a
spatially variable mixture of both economic and non-economic
sulphides. This is epitomised at George Fisher Mine,
Queensland, where shale-hosted polymetallic zincllead ore
occurs with pyrite and pyrrhotite gangue in a series of stratiform
massive sulphide lenses (Forrestal. 1990). Radio tomography at a
frequency of SO kHz clearly outlines the massive sulphide
mineralisation. but the ore boundary is less certain (Fullagar and
Fallon, 1997).
Sphalerite, especially low-iron sphalerite, is a low conductivity
sulphide, with the result that conventional EM is not always
effective for zinc exploration. Nevertheless. radio imaging has
proved effective for defining fault dislocations within the
zinc-mineralised shale-siltstone sequence at Century, Australia
(Figure 4).
Hole-to-hole stratigraphic correlation based on geophysical
logs can define faulting, especially in sedimentary environments.
Structural and stratigraphic interpretation of geophysical logs is
routine in the petrolcum and coal industries, and is well
established in metalliferous provinces such as the Hamersley
Hasin, both at the iron mines and in exploration (Kerr et al,
1994).
Towards geophysical grade estimation
The amount of core delineation drilling which can be foregone
(in favour of more economical drilling plus geophysical logging)
expands considcrahly when grade can be reliably inferred from
petrophysical logs.
Geophysical logs have provided a basis for coal quality
assessment for many years. Ash content has been estimated using
a variety of tools, including gamma-gamma and resistivity
(Edwards and Banks. 1978: Campbell, 1994) and
neutron-gamma (Borsaru et al. 1986; Nichols. 2000).
306 Coolurn. Qld. 14 - 17 May 2000
60 Unit 1
,Unit 2
70 -
Unit 3
80
Unit 4
90
UFW
1OOm
LH: 31
LH292
0 metres 25
Fic; 4 - Ke- messed cross-hole radio tomogram (S20 kHr), Century rinc
m i n t 4ustralia. showing fault dislocation of the mineralised
shale-siltstone sequence (after Mutton. 1997)
For sor metalliferous ore types there is a close correlation
between :trophysical properties and grade. Natural gamma
activity I routinely logged at uranium deposits for ore
delineatio and grade control (Conaway and Killeen, 1978), and
magnetic isceptibility has served as a direct grade indicator at
magnetite nines for decades (Virkkunen and Hattula. 1992).
Conduct i y correlates closely with grade for some base metal
sulphide es, eg at the Enonkoski nickel deposit in Finland
(Hattula a I Kekola, 1997).
Nucleai ogging techniques such as spectral gamma-gamma
(Killeen d Schock, 1991) and neutron activation (Horsaru,
I
Charhucir ti and Eider, 1994) can provide a direct indication of
elemental ibundanee. However, somc mining companies are
reluctant I deploy radioactive sources, for safety and logistical
reasons
For vir1 ally all gold deposits and many base metal deposits,
the abund ~ c eof the economic commodity, or its petrophysical
contrast v h respect to its host rock, is insufficient for ‘direct’
detection. However. in some eases a strong mineralogical
associatio exists between ore and a mineral which is readily
detectable In some Witwatersrand mines. for example, a
correlatioi between uranium content and gold grade permits
prediction if gold grades using natural gamma logging or face
scanning I ampbell, 1994). In other cases multi-parameter grade
estimates w e been derived. Nelson and Johnston (1994). for
example, timated copper grade at an oxide deposit in Arizona
from a l i i ar combination of density (gamma-gamma). natural
gamma, i d neutron activation log values. At the Pasminco
pol ymetal : Rosebery deposit, Tasmania, the ratio of natural
gamma to lensity correlates with zinc-equivalent grade (Fallon
and Fullag, r, 1997).
The chei iical accuracy and spatial resolution of petrophysical
grade estir ation need not be high in order to be useful. For
example, \. ithin the ore intervals it may be possible to reliably
distinguish high grade from low-grade zones on the basis of logs,
without ne ,essarily providing accurate geochemical abundance
estimates ’ rithin those zones. At Outokumpu’s Tara lead-zinc
mine in I n land, for example. gamma-gamma logging of in-fill
percussion delineation holes is used not only to refine contact
geometry, >ut also to rank the grade of ore blocks within
individual stopes (J Ashton. pers comm). The combined
4th International Mining Geology Conference

zinc+lead grade estimates derived from geophysical logs at Tara
are in fact fairly reliable, but are not used for ore reserve
calculations. Similarly, conductivity is a possible copper ore
cutoff indicator at Mt Isa (Fallon. Fullagar, and Zhou. 2000).
I f petrophyiscal properties correlate with grade, automatic
grade estimation is achievable using a variety of techniques,
including multi-variate statistics (eg Emilsson, 1993; Fullagar,
Zhou and Fallon. 1‘999) and neural networks (eg McCreary and
Wanstedt, 199.5). The assumption underlying automated
interpretation is that the relationships between petrophysics and
grade established in control holes are valid for other holes some
distance away. I t may be necessary to invoke different control
data sets in different sections of a mine.
I’etrophysical grade estimation via automated interpretation of
geophysical logs offers attractive benefits:
1 reduced reliance on core drilling;
2. lower core handling and assaying costs; and
3. shorter turn-around times.
Grades estimated from petrophysics are rarely accepted as a
basis for ore reserve estimation, even in mines such as Laisvall
(Sweden) where the correlation between density and lead grade
is well established (Fallon and Fullagar. 1995). A possible
exception Outokumpu’s Kemi chromite mine, Finland, where
grade estimates based on density (gamma-gamma) logs are
accepted for mine planning purposes (Figure 5 ) . However, the
validity of petrophysical grade estimates for modelling should
not be judged purely in terms of geochemical accuracy because
the sampling volume or support (per unit length of drill hole)
associated with borehole logs is approximately two orders of
magnitude greater than the volume of core. It is possible,
therefore, that ore reserve models based on geophysical logs
could be superior to assay-based models in some cases.
50
40
30
20
-
2.5 3 3.5
Density (g/cm3)
Flci S - Correlation between logged (gamma-gamma)density and chromite content for serpentine-hosted ore, Kemi Mine. Finland (after Talvisto. 1997).
4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000
THE EXPANDING KOLE OF MINE GEOPHYSICS
ROCK MASS CHARACTERISATION
Introduction
The strength and integrity of the rock mass is fundamentally
important in mine design and blasting optimisation. Geophysics
could enhance mine economics and safety by providing the
information for more detailed and complete geomechanical
models.
Sonic logging is the premier geophysical tool for rock mass
characterisation, since seismic velocity and attenuation are
sensitive to rock stress, strength. degree of fracturing, porosity.
and the nature of the material occupying the voids. Sonic
velocity can be related to mechanical parameters such as
hardness and uniaxial compressive strength (UCS). eg Ohkubo
and Terasaki (1977). McNally (1990). The effect of an increase
i n the number of fractures per unit length on the compressional
velocity has been documented by King, Pandi and Stauffer
( 1 978). Seismic attenuation is more pronounced in fractured
rock, especially at high frequencies.
Sonic logging enjoys distinct advantages over testing of
individual core samples insofar as it provides a continuous record
of rock character in situ. At minimum, sonic logs can be used to
optimise the selection of core samples for testing and hence
calibration. Ideally, the sample suite should fully and evenly span
the strength range for each rock type. Properly calibrated. sonic
velocity data can provide rock strength information in weak
zones, which are not amenable to core testing due to core
fragmentation and loss. Thus sonic logging offers a means for
overcoming sample selection bias which can be difficult to avoid
in conventional core testing.
Full waveform sonic (FWS) logs allow determination of the
shear wave velocity, V,, in addition to the compressional
velocity, V, (Hatherly et al. 1997). In the absence of F W S data,
4 4.5
307
P K FULLAGAK
the shear wave velocity can sometimes be estimated from the
compressional velocity and the density of the rock (Entwisle and
McCann, 1990). The dynamic elastic moduli and Poisson’s ratio
can be calculated from V,, V,, and density (cg McCann and
Entwisle, 1992). Figure 6 shows logs of shear, bulk, and Young’s
moduli derived from sonic and density logs for a hole passing
through the Ventersdorp contact reef (VCR) in the South Deep
gold minc, South Africa (Campbell, 1994). The talcose
Westonaria (lava) which directly overlies the VCR is a relatively
soft, weak rock, in contrast to the competent Witwatersrand
quartzites in the footwall. There are significant variations in rock
engineering properties on a fine scale within thc rock units,
probably due to local fracturing.
The dynamic and static elastic moduli are almost equal for
high strength rocks, but for weaker rocks large differences can
arise i f the high strains (-10.’) imposed during testing cause
permanent deformation (McCann and Entwisle, 1992). Thus it is
not usually appropriate to simply interchange dynamic moduli
for static moduli in rock mechanics modelling programs.
However, it may be possible to develop a conversion from one to
the other using a control suite of core samples (Asten, 1982).
Sonic and density logging are by no means the only
geophysical options for rock mass characterisation. Wade and
Hickinbotham (1997). for example, derive formulae for friction
angle in terms of sonic, natural gamma, and resistivity. Dipmeter
logs, based on resistivity, can indicate joint and fracture
orientations as well as bcdding. For highly detailed structural
analysis, increasingly sophisticated acoustic televiewers (ATV)
and borehole scanners are bccoming available (eg Elkington,
1996). Placer is making extensive use of ATV data, often
transformed into virtual core, for its geotechnical characterisation
of the Gctchell Mine, Nevada (P Kowalczyk, pers comm).
Single-hole radar reflection imaging can also be effective in
resistive environments, for extrapolation of structures beyond the
hole walls (Olsson ef al, 1992).
Although dry hole sonic (Hatherly er al, 1992) and resistivity
(Mwenifumbo and Rristow, 1999) logging tools have been
developed, these parameters are not usually rccordcd above the
standing water level or in holes inclined upwards.
Blasting optimisation
Major savings have been realised in the past in open pit
operations using seismic refraction to define vclocity and hence
indicate blastability. Heincn and Dimock (1976) determined the
rclationship between velocity and powder factors at the Ely open
pit minc in Nevada. They estimated that a 17 per cent reduction
in drilling and blasting costs was obtained by exploiting the
seismic information. The capital outlay and operating costs were
insignificant in comparison with the cost reductions.
Measurement-while-drilling (MWD) technology, originally
developed to monitor drill performance. constitutes a potential
source of geomechanical information. Scoble. Peck, and
Hendricks (1989) reported success predicting bench geology and
blastability from rotary drill MWD in coal mines. ‘Hardness’ and
‘homogeneity’ parameters were inferred from MWD at the
Viscaria Mine, Sweden (Schunnesson and Holme, 1997). If ore is
mechanically distinct from its host, MWD can be used to define
ore boundaries, and hence guide charge placcment, eg at
Zinkgruvan (Schunncsson, I990a). In practice the estimation of
rock strength and blastability from MWD data involves statistical
analysis of a numbcr of drill performance parameters
(Schunnesson, 1990b). The statistical basis for interpretation
must be developed during a prior control study.
Hazard detection
Seismic velocity increascs with an increase in in situ stress. In
order to minimise safety risks posed by rock burst and/or
collapse events. seismic monitoring equipment has been installed
308 Coolum. Qld. 14
in many al and metalliferous mines, ~g McCreary er a1 ( 1992);
Maxwel nd Young (1993); Luo. Hatherly and McKavanagh
( I 998). iile it is not usually possible to predict timing of
individu railures, spatial zones of high risk can be defined. In
,
addition microseismic monitoring contributes to overall
understa ng of the mechanisms for rock failure.
Kefrac In seismic can be employed on the ground surface for
detectioi f potential collapse features above old minc workings,
by virtu1 ‘their lower velocity (Schwarz, 1990).
Grour xnetrating radar has been deployed at a number of
mine sit1 ‘or detection of cavities. eg for timely identification of
historic ie workings beneath new open pit mines at Kalgoorlic
(Wi1I ian 1996). Similarly, in-scam seismic has been employed
in coal nes, to detect old workings (Hauser, Jackson and
Gagliarc 1994) or stressed coal (Mason, 1981) in advance of
active IT : headings. At Inco’s Stobie Mine, GPR recorded in
drifts m led the surface of an ore pass which was advancing
due to e ion of wall rocks (Fullagar and Livelybrooks, 1994).
The infe d range to the ore-pass at closest approach indicated
that the I had eroded 15 ft beyond its expected position.
The p encc of fracture aquifers can be revealed as zones of
anomalo y high conductivity and/or dielectric constant in
otherwis ‘esistive formations. In the Witwatersrand. radar is
recorded I development tunnels to map potentially hazardous
water-fil fracturc zones (Campbell, 1994).
CONCLUSIONS
Properly )plied, geophysics has the potential to enhance the
cconomi safety, and environmental performance of mines.
Fundaml ally, the benefit of geophysics flows from risk
reductio ria more complete characterisation of the orebody and
its scttir The role of geophysics at mines will expand in the
21’‘ cer ry as mining companies respond to increasing
commcrl , moral, and statutory pressures, and as emerging
technolo s mature. In some cases, the introduction of new
mining :thods, in response to these pressures, will be
prcdicatc on geophysical imaging. Mechaniscd continuous
mining, example, is highly intolerant of geological surprises.
3D seisr reduces the risk of unexpected faults or intrusivcs in
longwall inels at coal mines. Likewise, the success of more
mechani i and continuous sequential grid mining (SGM) in the
I:
deep go1 ines of the Witwatersrand will be heavily reliant on
SOPhYS imaging, both 3D seismic from the surface, to define
mining cks prior to mine commencement. and detailed
imaging the unmined blocks from underground development
( Wedepc r 01, 1998).
Increa use of surface 3D seismic for mine planning
purposer assured, especially in sedimentary environments. In
igncous metamorphic terranes. downholc EM and magnetics
will con e to play an important role for in-mine exploration
and ground sterilisation at ranges of tens to hundreds of metres
(Hoschke, 1991; King, 1996). The great benefit of these borehole
imaging techniques is their massive expansion of the effective
search radii s of the drill hole (Turner et al, 1996). The deeper the
ore, the greirter the potential benefit (Watts, 1997).
Utilisatioi of high resolution in-mine seismic, radio, and radar
imaging, to define ore boundarics to better than 5 m accuracy. is
still sporad c and relatively experimental at metalliferous mines,
both for re kction and transmission surveys. The fundamental
challenge for in-mine imaging is to reduce costs and time scales.
for both accuisition and interpretation. in order to offer a genuine
alternative to extra drilling. One rate limiting factor is that
equipment designed for surface exploration is rarely suitable for
the rigours of underground deployment (Wedepohl er al. 1998).
To a degrel:, geophysics is in a Catch-22 bind, insofar as the
investment -equired to re-engineer instrumentation and develop
robust new nterpretation strategies will not be forthcoming until
- 17 May 2000 41h International Mining Geology Conference

POISSON'S RATIO GEOLOGY YOUNG'S MODULUS
4 --
0 0.2 0.4 70
Flc; 6 - Dynamic elastic constants derived from sonic and density logs, Wltwatersrand Basin. South Africa. Fine scale variations in rock strength are
evident within the weak Westonaria formation, the hangingwall to the auriferous Ventersdorp Contact Reef (after Campbell, 1994).
the viability of in-mine geophysics in a production setting has
hecn fully established! Technology development often sits
awkwardly with a production mindset, yet if mining companies
d o not actively support development of the equipment
themselves, it is unlikely to attract investment from other
quarters, given the highly specialised nature of the application.
In and near mines, the existing geological model is the starting
point for the interpretation of geophysical data. The geophysical
survey will be a failure unless it adds to an already-substantial
understanding of mine geology. The constraints on interpretation
are therefore far tighter than in grass roots exploration. Existing
mine and geophysical modelling software packages are generally
not well adapted for integrated interpretation of geophysical
imaging data. exchange and display of disparate two- and
three-dimensional information. Levett and Logan ( I 998) have
illustrated one way forward by inputting mine geology
wireframes into magnetic modelling software, to expedite
interpretation of borehole magnetic data. McGaughcy and Vallee
(1997) have described a more sophisticated ,'common earth
model' approach. originating in the petroleum industry, which
offers simultaneous 311 display of a physical property
distrihution. geological surfaces. and geophysical data in various
forms. The visualisation engine is linked to modelling and
inversion programs, to expedite quantitative interpretation of the
geophysical data. The joint ownership of the common earth
4 t h International Mining Geology Conference Coolurn. Qld. 14 17 May 2000
~
THE EXPANDING ROLE OF MINE GEOPHYSICS
SHEAR MODULUS BULK MODULUS
-
7
model by geologists and geophysicists is a key feature, one likely
to enhance communication and maximise the benefit derived
from geophysics. At the same time, the common earth model
reinforces appreciation of the fundamental importance of
petrophysics. which links geology, geophysics. and mine
engineering.
Borehole logging and scanning provide local information
about the borehole wall and the rock immediately surrounding it.
A wide range of slimline borehole tools is now available
(Killeen, 1997). Borehole logging can be regarded as, an
alternative to core drilling, and as such provides mine operators
with options to optimise the drilling budget to suit their specific
requirements (Fallon and Fullagar, 1997). The economic benefit
may take a number of different forms, including: substitution of
core drilling with cheaper percussion drilling plus logging;
reduced expenditure and delays for core tests (assays, rock
strength, metallurgy); and enhanced ore recovery and reduced
dilution via accurate definition of ore boundaries in blast holes.
The existing equipment is satisfactory for most in-mine
conditions, and technical specifications will continue to improve.
In logging as in seismic. the mining industry benefits from
developments in the petroleum industry. Logging systems can be
operated by either mine personnel as well as contractors, and the
digital data they generate are well suited to real-time capture in
fully instrumented mines.
309
 P K FULLAGAK

I
, There is great scope for improved grade estimation and rock
mass characterisation from logs and scanner data, as
petrophysical understanding and interpretational aids improve.
However, quantitative interpretation relies implicitly on data
quality: regular probe calibrations, routine precision checks, and
adherence to appropriate data acquisition procedures are
essential to achieve high precision and accuracy.
The main limitation of borehole logging is the need to
re-access the hole after drill completion. Logging after drilling is
a logistical complication, involving as it docs mobilisation of Watts (Falconbridge. Toronto) and Eric
personnel and equipment to thc drill holes. This effort is futile if Miningtek, Johannesburg).
the hole is blocked. Plastic casing and, more so, logging through
drill rods entail extra expense, and can degrade data quality. To
overcome these difficulties, and to shorten the time between
drilling and interpretation, there is a strong incentive to collect
data during drilling. Logging-while-drilling (LWD) technology is REFERENCES
available for a range of parameters in petroleum wells
(McDonald and Ward, 1976; Allen et al, 1989). but only for
navigational measurements in slimline holes, eg to steer in-seam
gas drainage holes. LWD in mines is conceptually attractive, but
it is unclear whether the potential financial return warrants
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rigs as yet (Mason and Hatherly, 1997). Rasmus. J, Roulet, C and Wraight, P. 1989. Logging
Interpretational aids are in a reasonably advanced state for Oilfield Review, I :4-17.
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integration of both data sets and paradigms. Auto-interpretation strength. in Workshop on G'eorechnicul Lo,qxitix of
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simultaneously and can enforce stratigraphic order, thereby
bringing geophysics, geochemistry, and geology together (Figure
2). Properly calibrated borehole logs also have a role to play in
the interpretation of imaging data, both locally, by constraining
models where they are pierced by drill holes, and globally, by om the drillhole, with
defining physical property ranges. How best to exploit the highly
detailed (-5 cm sampling) borehole logs to constrain models
developed from data with resolution defined in metres or even
tens of metres is not a trivial issue. A great deal of effort has
been devoted to this upscaling problem in the context of
petroleum seismic (Yang et al, 1994). but this is not necessarily
directly transferable to conductivity, for example. A melding of
geostatistical and geophysical paradigms appears to offer
considerable promise, both for addressing the upscaling issue in
particular and, more generally, for joint interpretation of
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tomography can be combined for a case where conductivity XVth CMMI Congress. South
correlates with copper grade. lurgy, Vol 3. p p 283-32.5.
Lack of mutual awareness between geophysicists on the one resolution seismic tomographic
hand and mining geologists, engineers, and managers on the
other has certainly impeded in-mine implementation of
geophysics in the past, and staff geophysicists are still a rarity at
most mines. Awareness is just the beginning, however. Mine
management must also be convinced that the costs of geophysics,
in terms of contractors, capital outlays (if any), and management
effort, are justified in terms of the mine pcrformance benefits
which ensue. The implementation of geophysics must be tailored
I
at each mine, to deliver the correct information in the appropriate
form at the opportune time for the right price. The challenge for
geophysics is to achieve a level of reliability and productivity to ing, MINEIT'97 (FA: G Panagiotou) (Balkema:
justify acceptance as an integral component of the mining
operation. This cannot occur in a vacuum: to realise the benefits,
the mines themselves must continue to actively support and
participate in the on-going refinement of geophysical technology.
CIM Bulletin, April. p p 124- I3 I .
ACKNOWLEDGEMENTS Thierbach. R, 1993. Borehole radar -, an
to aid in the planning of salt cavems and
This paper is very much an outgrowth of my participation in the Salt, Vol 1, pp 279-284 (Elsevier Science
CMTE MMI (AMIRA P436) research project into applications
of geophysics in metalliferous mines. In particular, 1 wish to acquisition and analysis of slim acoustic scanner
acknowledge the explicit and implicit contributions of my n Society of Exploration Geophysicists Preview,
colleagues Gary Fallon (MIM, Brisbane), Peter Hatherly i

310 Coolum. Old. 14 - 17 May 2000 4th International Mining Geology Conferelce

Emilsson. J. 1993. Geophysical multi-parameter logging techniques
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I'allon. G N and Fullagar, P K. 199.5. Benchmarking study of geophysical
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314 Coolum. Qld. 14 - 17 May 2000 4th International Mining Geology Conference
Detailed Orebody Mapping Using Borehole Radar
A Wellington', G Turner', I Mason3 and J Hargreaves3
ABSTRACT
One of the key objectives in production from any mine is the
minimisation of ore loss and dilution. This can only be achieved when
the distribution of ore within the mine is known. The distribution of ore is
usually evaluated from a combination of drill hole information and
underground mapping data. Three-dimensional models of the ore
distribution are then constructed by interpolating grades. contact
locations and confirming these estimates through mapping. While the
interpolation procedure can incorporate an understanding of the local
geological conditions. i t is an approximation and thus susceptible to
some degree of ore loss or dilution. Naturally, such problems increase in
areas of sparse geologic information or greater geologic complexity.
Borehole radar offers an approach to decrease the interpolative aspects
of modelling by providing a continuous image of some ore contacts.
Borehole radar works by building a two-dimensional image of an ore
contact from radio waves bounced off the contact from closely spaced
positions along a borehole. This image can be imported into Datamine
(or a similar design package) and incorporated into geological models of
a given ore hlock.
The results of a trial survey from the Mariners nickel mine at
Kambalda are presented to illustrate the improved level of detail and
accuracy that can be achieved through the incorporation of borehole radar
into orehody delineation practice. Once implemented on a large-scale this
technique has the potential to greatly increase the cost-effectiveness of
long hole stoping at Kambalda. through increased ore recovery and
reduced dilution.
INTRODUCTION
The proper use of large tonnage extraction techniques on
high-grade orebodies offers the ultimate in low-cost mining of
high-gradc material. Consequently the application of bulk mining
methods (such as long hole stoping) to narrow, tabular orebodies
has the potential to deliver substantial financial benefits.
However, inferior definition prior to mining, of high-grade ore
zones often precludes realisation of this objective. This difficulty
in interpolation arises from the nature of vein style orebodies,
and can be further complicated by structural dislocation of the
ore syn- or post-formation. Traditionally, structural off-sets can
be difficult l o predict in sparsely drilled areas. and in some cases,
level mapping is not sufficient to accurately define the
distribution of ore betwccn levels. In thesc cases, extraction of
the long hole block between the two levels can result in excessive
dilution (due to thinning of the ore zone) or ore loss (due to
thickening). Both outcomes affect a mine's profitability, so every
attempt must bc made to accurately define the orebody between
levels prior to long hole extraction.
There are numerous methods of defining the distribution of ore
within a given arca. however this paper will focus on a new
method; Borehole Radar. The Borehole Radar method has been
extcnsivcly trialed over a number of years at WMC's Kambalda
Nickel Operations, with the data presented herein indicative of
the type of images acquired. The goal of Borehole Radar is to
obtain a more detailed picture of the ore contacts than has been
possible with drilling alonc.
I. MAuslMM. WMC Resources Ltd. Olympic Dam Operations. PO
Box I SO. Roxby Downs SA 572.5.
2. MAusIMM. SenseOre Services Pty Ltd. 4/51 Sorrento St. North
Beach WA 6020.
3. Ikpwtment of Geology and Geophysics. Sydney University NSW
2006.
4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000
KAMBALDA GEOLOGY AND
MINING METHODOLOGY
The Kambalda nickel sulphide deposits are located in the Yilgarn
Craton of Wcstcrn Australia. Numerous descriptions of the
regional stratigraphy and local geology have bccn publishcd
since the Kambalda deposits were first discovered over 30 years
ago (eg Cowden and Roberts, 1990; Stone and Masterman,
1998). Nickel sulphide deposits are generally located at the base
of ultramafic flows (the Silver Lake and Tripod Hill Members),
on the contact between these flows and the basal Lunnon Basalt.
A thin layer of massive sulphide is generally present on the basal
contact, overlain by matrix (40 to 80 per cent sulphide) a n d o r
disseminated sulphides. Contacts between disseminated ore and
barren ultramafic may be sharp or gradational, with ore
thicknesses rarely exceeding 5 m. All Kambalda deposits have
been deformed post-deposition by numerous phases of
deformation, which has led to complex ore geometry in some
cases. Late-stage felsic intrusives further complicate the
distribution of ore zones in some deposits. Figure 1 is a
schematic block diagram which summarises the main elements
of the ore zone stratigraphy.
In general, the deposits are small (less than five million
tonnes) tabular in form, and high-grade. Consequently, thin vein
style mining methods have been employed to maximise ore
grade. Overhand cut and fill has been the standard method for
extraction of steeply dipping orebodies, with crown pillars
extracted by long hole stoping. More recently, a primary long
hole stoping method has been introduced, where 10 m height
long hole stopes are extracted between strike drives. While this
method does allow the long hole stopes to be positioned in more
stable ground, the opportunities to gain spatial information on the
ore zone, and apply it to future mining are drastically reduced.
ORE ZONE DELINEATION OPTIONS
The challenge is therefore to accurately delineate the ore zone
prior to drilling and blasting of the long hole stopes. Several
options exist. Extensive diamond drilling can be used to define
changes in ore zone thickness. The highest density drilling
coverage currently used routinely at Kambalda is 20 x 20 m
spaced drilling, but even this close spacing is not always
sufficient to resolve the ore zone thickness to sufficient detail to
offer minimal dilution. To drill out proposed mining areas on
closer spaced grids is prohibitively expensive. In-stope sludge
drilling is also an option. but sludge drilling typically suffers
from 'smearing' of grade, and even discounting this limitation,
each hole can only result in a single point of information (ic the
ore to waste transition).
A third approach was considered worth trialing. The use of
borehole radar to provide a continuous 2D picture of the
orelwaste contact. It was hoped that the ability of radar to
produce a continuous image of the contact rather than just the
single points available from drilling data would assist in
improving the delineation of ore zones.
BOREHOLE RADAR DESCRIPTION
The Arcolab Borehole Radar System was used to collect all of
the data contained in this paper. Thc radar system consists of two
downhole probes. a transmitter and receiver, which are
assembled in series. These probcs transmit data via fibre-optic
315
 A WELLINGTON. G TURNER. 1 MASON and J HAKGREAVES.7

LEGEND

GRANITOID

ULTRAMAFIC

NiSORE
.....
II II SEDIMENTARY ROCK

0 BASALT illlllll. rr,,,,,,

ULTRAMAFIC;

BASALT '

SEDIMENT FREE

, . .. . .

BASALT ORE BASALT

PINCHOUT
/ 200
I

METRES

FIGI - Schematic block rriotlel of the Kaiiihalda ore environinent (modified after Stone and M terrnan. 1998). The ore is located on thc contact between
the bxal ultramafic flow and the Lunnon basalt. The ore tends to form in channels, although i lay not be continuous within the channels. Sediinents are
also present in the stratigraphy. although they are generally absent form the iiiiinediate ore vironrnent. The felsic intrusives depicted here may bc '
common or absent depending on the del sit.

cables to a PC where the data arc rccordcd and displayed in real

time. A schematic depiction of the radar system is presented in
Figure 2
The operating principals of Borehole Radar are similar to
seismic reflection in that reflections are produced when the radar
wave encounters a change in rock properties. The relevant
property for radar is the dielectric constant At the houndary
between two rock types, a change in dielectric constant generally
occurs. The contrast of this property across an interfxc
determines the magnitude of the reflection. A large changc in the
dielectric constant across a boundary results in a strong reflection
(for example. the contact between massive sulphidc and basalt).

f
Transmitter
A prolilc of the contact location is constructed by taking a Winch
number of shots at regular intervals along the borehole (generally
around 0.25 m intervals).
A series of trials was performed to confirm that the contact of
interest could be mapped from sludge holes drilled in the Trans;;iinB;T/
footwall to the ore block. These trials established a number of
parameters csscntial for collection of a useful radar image of the
contact. Firstly, the holes must be as parallel as possible to the
......
L!
.- . - . . -. .......
contact under investigation. Holes filled with saline water cannot I

be logged successfully, so such holes must first be flushed clean
with fresh water. Additionally the operating range of this
borehole radar system has been established to be between 4 m
and 25 m in Kambalda rocks. These criteria now provide the
guidelines for future radar delineation designs.
FIG2 - Schem: c of the Borehole Radar system. At each rock interface.
portion of the :dent energy is reflected with the remainder transmitted.
These propon ns are dependent on the difference i n dielectric constant'
between the two rock types.

CASE STUDY - MARINERS NICKEL MINE rcsulted in e iancemcnt of the ore profile in some areas of the
deposit, and ttenuation of the profile in others. Figure 3 is a
The Mariners nickel mine is located around 60 km from longitudinal mion of the o r e b d y which demonstrates the
Kambalda in the Widgiemooltha area. The deposit is hosted in an large-scale d .uption of the ore surfaces. This structural fabric is
amphibolite grade metamorphic terrain, and has been extensively also evident ,thin each ore block, with numerous disruptions to
affected by multiple phases of deformation. This deformation has the ore profil present in each level. I
I

1 316 Coolurn. Old, 14 - 17 May 2000 4th International Mining Geology Conference
 . . .
. .. . . .. . ...
.........
. . . .
. . .
. . . . . . . ..
. . ,
I)ETAILEI>0REROI)Y MAPPING USING BOREHOLE KADAK

. .

Drill Drive
Ultramafic

. . . .. . . . \ . ' . '
. . . . . . . . .\=

. ........................
. . . . . . . . .
. .. ... ... ... ... ... ... .. . .. . .. . .. . .
. . .. .. .. . .. .. . . . . . . . 2
. . . . . . . . . . . . . . . .:A. .

FIG3 - Longitudinal section of the Mariners orcbody

Note the discontinuous nature of the ore surfaces.
. . . , . . .. . . .
. . .. .. . .. . . . . . .
'

.\: ' , ' ~ r z ~ / O y :

Thiq distribution is primanly controlled by struciurc.
A typical strike drive backs map is presented in Figure 4. The
mapping highlights the discontinuous nature of the orebody, with
many rapid changes from thick to thin profiles. Many thickened
zones have no obvious structural control, which makes
interpretation of these features between levels highly subjective.
..
1 hick massive sulphide zones. ie at 1040 N. may contain more
than 20 per cent of the nickel metal in (he stope and may easily
be missed if the thickening commences hetwecn levels.
As ii result o f the structural complexity described above a
technique that could decrease the interpolative aspects of
modelling by providing il continuous image of some ore contacts
would be extremely valuable i n this environment. Extraction of
long hole stoping blocks had been problematic in the past, with
significant massive sulphide left on the footwall after blasting in
some cases. Several test holes were drilled to act as radar
platform holes (eg Figure 5 ) . Radar surveys were completed in
each hole, with high quality reflections obtained from the contact
between Lunnon basalt and massive nickel sulphide. Figure 6
shows a sample data set from the program of trials. The contact
reflection is clear and demonstrates the ability of the radar to
. . .. .. .. .. .. .. .. . .....................
. . . .. ..
. .. .. .. .. .. . . .
XQ',
. . . . .. .
. . . . .. .
. . . .
. .. . .. . .. . . . . . . . . . . . . . . .
. . , . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .
. . . .. . . . . . . . . . . . .
. .. . .. . .. . .. . .. . .. . .. . .. . .. . .. ... ... ... ... ... ... .... .. . .. . .. . .. ... ... .
. . . .. . . . . . . . . . . .
. .. ... .. . .. ..... ... .... ... ....... ... .... ...'.Basalt. . . . . . . . .. .. .. .. .
. . . . . . . . . . . . . . . . .. .. .. ... . . . .. .. .. .. .. ..
. . . ... ... ... ... . . . . . . . . . . . . . . . .
...
Rc S - Cross-sectionalview of the development of a thickened zone
between levels. This type of ore zone configuration is reasonably
common. and can be difficult to predict i n sparsely drilled areas The
thickening of massive sulphide sections of the ore profile that
accompanies this structural overprint. significantly u p grades the
mineralised interval. A hole drilled to act as a platform for borehole radar
is shown Kadar data obtained from this hole enables the thickened zone
10 be accurately dclineated and incorporated into stope designs.
map subtle variations in the orientation of this contact to sub
metre precision. Additional examples of Borehole Radar data are
available in Turner et al, 2000 and Trickett, Mason and
Stevenson. 1999.

FIG4 - Hacks mapping of the 103 Nonh level at Mariners nickcl inine. The mapping illustrates the rapid changes from thick ore profiles to thin ore
profiles. N o ohvious structures have been niapped around soine ofthc thiclcned zones. which makes interpretation of continuation up and down dip
difficult

4th International Mining Geology Conference Coolum. OM. 14 . 17 May 2000 317
 A WELLINGTON. G TURNER. 1 MASON and 1 HARGKEAVES3

0
c
Raw Image

Hola Depth(!??)
1r!

APPLICATION OF BOREHOLE RADAR DATA

15

Collecting data in a single hole can not assist greatly in achieving

an optimal stope design. To achieve this, a large number of holes
0
.
I terpretation

-Direct

+--
arrival

Interpreted
contact
position

.,_ .
I
I
I

I
I

..
I

must be drilled to gain a reasonably complete coverage of the

contact under investigation. Depending on the complexity of the
geology, holes may have to be drilled on sections as close as 5 m
apart. The radar images obtained in each hole can and have been
converted to strings in 3D space, then imported into Datamine Thi
for incorporation into stope wireframes. This information adds a Or
considerable level of detail to the geological interpretation, and
results in the most detailed and accurate representation of the
geology currently possible.
For the purpose of illustrating the potential benefits of
incorporating borehole radar into orebody delineation practice in
this environmcnt, Figures 7 through 9 illustrate a hypothetical
example of how Borehole Radar may be applied systematically
to stope delineation on a large-scale. Figure 7 shows the initial
case of two development levels with backs mapping to define the
ore. A fault cuts through the profile, and has resulted in
thickening on one level, but little effect on the other. The
important question is to what extent the ore zone between the
two drives is thickened. A linear interpretation can be obtained
simply by wireframing the two backs maps in Datamine (Figure Rc; 7 - This d agram illustrates the srarting point of most stope designs;
8). two strike dr ves with backs mapping. The rcd area represents the ore I
To enable borehole radar delineation of the stoping block, zones.
sludge holes would be drilled at 5 m intervals in the footwall,
sub-parallel to the ore zone. In this case, the contact between the
ore and waste is considerably further into the footwall than Similarly, a thinned zone exists toward the opposite end of thk
indicated by the linear interpretation in Figure 8. Interpretation of stope. This zone too would be delineated by a series of RoreholG
the image produced by the radar leads to a single string in 3D
space. A collection of these strings is then added to the orcbody
wireframe around the thickened zone to improve the accuracy in
this region (Figure 9). model of greatly increased accuracy results from the combination

I
318 Coolum, Old, 14 - 17 May 2000 4th International Mining Geology Conference

Fault
Ore zone
wireframe
Pic; 8 - Wireframing the rnapping from the two levels results in this
interpretation of the distrihution of the ore bctween the levels. Note that
the fault has also been wireframed. and that the Kadar platform holes
have been planned in the footwall of the ore zone.
11 or(
xi in
ZOIl
Delineated
thin ore zone
Holes
Flci 9 - This diagram shows the final stope design after the radar surveys
have been completed and the resulting information incorporated into the
original wireframe. The zone of thickening is represented in purple. while
the zone of thinning is represented in yellow.
of mapping and Borehole Kadar information. This model can
then be used with confidence to design the stope so all ore is
extracted and minimal dilution is achieved.
FINANCIAL IMPLICATIONS
The financial benefits of this approach to long hole stoping may
be significant. As an example, extraction of a long hole s t o p
above the strike drive depicted in Figure 4 will be considered
(around 60 m strike length). For simplicity, it is assumed that the
ore profile continues at the mapped thickness over the 10 m
vertical height to the next level. Given approximations of the ore
grade and thickness, the total nickel metal in the block is around
77 tonnes. Of this, 24 tonnes are located in the thickened massive
zone (31 per cent of the total). Assuming a nickel price of
4th International Mining Geology Conference Coolum, Old, 14 - 17 May 2000
DETAILED ORERODY MAPPING USING BOREHOLE RADAR
$A12 000 per tonne, the total dollar value of the nickel i n the
stoping block is $A924 000. I f the thickened zone is not
extracted (as might be the case if this zone occurred between
levels), the extracted value is reduced by $A288 000. This drop
in revenue is significant, and may represent the difference
between extracting the block profitably or at a loss.
In this example, definition of the exact location of the footwall
contact through use of borehole radar would allow the following:
accurate definition of thickened zones up and down dip;
definition of thinning zones;
subsequent allocation of any required remnant pillars to the
thinnest zones;
complete extraction of ore within thick zones; and
optimisation of the entire stope (ie extract only the zones that
yield the highest NPV).
It may be that the highest NPV case results when only the
northern 30 m, and southern 10 m of the stope arc extracted,
while the thin zone between the 1020 N and the 1000 N is not
mined. This approach will result in extraction of around 87 per
cent of the nickel metal in the stope for around 67 per cent of the
cost of mining the whole stope. Accurate delineation allows this
type of analysis to he completed, with the result being more
cost-effective mining.
CONCLUSIONS
The goal to increase production efficiency through bulk mining
methods has resulted in a requirement to better define stoping
blocks prior to extraction. Borehole Radar has been identified as
a possible method of achieving this and a series of successful
trials have been completed. Excellent quality images of the
massive sulphidehasalt contact can be achieved through use of
this method. Incorporating these data into stope designs results in
a highly accurate representation of the orebody, which can then
be used to plan the optimal extraction of the stope. The accurate
delineation of the ore outlines can lead to increased ore
extraction and/or reduced dilution with each having a significant
impact on the grade and overall economics of the stope. As such,
the utilisation of Borehole Radar data in combination with other
available geological data can play a major role in increasing the
grade, and improving the predicability of long hole mining
operations at Kambalda.
ACKNOWLEDGEMENTS
The authors thank WMC for permission to publish this data, and
acknowledge the contributions of the following people; A Hill,
C Allison, D Mapleson, J Battershill, and H Golden. This work
was greatly assisted by the A R C 0 Geophysical Research
Reneficiation. Recent development work on the borehole radar
has been supported by an Australian Research Council
Collaborative Grant and by WMC’s Group Technology.
REFERENCES
Cowden. A C and Roberts. D E, 1990. Komatiite hosted nickel deposits.
Kambalda. in G P ~ J ~ OofR Y the M i n e d DP~OSIIS
of Ausrruliu und
Pupuu New Guineu (Ed: F E Hughes) pp .567-.581 (The Australasian
Institute of Mining and Metallurgy: Melbourne).
Stone. W E and Masterman, E E. 1998. Kambalda nickel deposits, in
Geology cf Austruliun and Pupuu New Guineun Minerul Deposits
(Eds: D A Berkman and D H Mackenzie). pp 347-3.56 (The
Australasian Institute of Mining and Metallurgy: Melbourne).
Trickett. J C. Mason. I M and Stevenson, F, 1999. Borehole Radar at an
underground Ventersdorp Contact Reef Site: Presented at the 1999
South African Geophysical Association Conference.
Turner. G S, Mason, I M. Hargreaves. J E and Wellington. A, 2000.
Detailed orebody mapping using borehole radar. Explorution
G e ( i p h y . ~ (in
i ~ . press).
~
319
 I

I
I
320 Coolum. Old. 14 - 17 May 2000 4th International Mining Geology Conference
I
Application of the SIROLOG Downhole Geophysical Tool at
Callide Coalfields - East Central Queensland
W Nichols'
ABSTRACT
Callitle Coalfields produces a sub-bituminous. very subhydrous, low
rank. steaming coal with good combustion properties. primarily for
domestic power generation.
Geological input into planning of coal extraction requires expedient
production of detailed structural. lithological. analytical. geophysical and
geotechnical data. The CSIKO-developed SIROLOG borehole logging
software and hardware system allows for detailed spectrometric analysis
of coal/interburden. The gamma-gamma and neutron-gamma SIKOLOG
techniques both provide improved prediction of ash content over other
horeholc techniques. The neutron-gamma technique also predicts density
and some important ash constituents (especially iron, alumina and silica).
The software/hardware configuration allows for quick, easy interpretation
of coal seam depth and lithology, parting thickness and ashlash
constituent contents immediately after a borehole has been logged.
Within certain mine s e a s in the Callide Basin. the iron content of
mined coal is widely variable in both vertical and lateral extent within
and hetween seams. This variability crcatcs problems in predicting the
slagging behaviour of 'as-received' coal during combustion. especially
where the iron content of the ash exceeds 19 per cent. Using the
SIKOLOG tool in co-operation with traditional borehole sample
laboratory analysis results, patterns in this variability can be determined
and related to geological properties and process of formation of the coal
seams. Subsequently. area$ of high iron can be predicted in advance of
mining.
I . MAuslMM. Senior Geologist, Callide Coalfields Ply Ltd. PO Box
144. Biloela o l d 4715.
4th International Mining Geology Conference Coolum, Old, 14 - 17 May 2000
Since 1992. on-going collection and interpretation of SIROLOG
downhole geophysical log data has significantly contributed to a numbei
of research projects related to gaining a preliminary understanding of the
iron distribution and formation during the Coal Measures' deposition.
Because the probe was able to record variations in coal mineral matter
content, it was found to complement more conventional techniques such
as reflected light petrography. X-Kay Diffraction and SEM techniques
that examine the mineralogy of iron species. Additionally, software has
been developed to allow integration of SIROLOG data into existing
geology databases. enhancing coal quality modelling and daily prediction
of parameters such as raw ash, silica and iron contents that are indicators
of ash fusion propensity.
The correlation of SIROLOG-derived iron geophysical traces between
drillholes and other sample points highlighted lithological and structural
controls in the iron distribution in the sequence previously not detected.
This work has allowed the development of a methodology for predicting
iron in advance of mining and reconciling as-sold coal quality to that
predicted. Predictions are currently being assessed at the coal face as
mining progresses through high-iron zones.
INTRODUCTION
The Callide Coal Measures Basin is located approximately 120
km SW of Gladstone and 450 km NNW of Brisbane in eastern
Central Queensland. The coalfield covers an area of about 18 000
hectares and is located within a NW to SE trending synclinal
basin 22.5 km long by 8 km wide (Figure I). Present open-cut
mining operations are located in the Dunn Creek, Trap Gully and
The Hut areas in the south, and at Boundary Hill in the NW of
the basin.
321

W NICHOLS
At Boundary Hill, the majority of the coal is won from the
Callide Seam Member of the Callide Coal Measures. This unit is
of Late Triassic age and contains alternating sequences of
conglomerate, sandstone. siltstone, mudstone. carbonaceous
shale. and sub-bituminous durainous coal of varying hardness
and thickness. A detailed description of the geology of the area is
given by Biggs er al(l99S). Current mining seam thicknesses are
16 - 21 m at Boundary Hill. Seam thicknesses down to and
including 0.3 m can be mined. Figure 2 outlines some typical
geophysical signatures of the various coal seam horizons. Coal
quality parameters vary widely vertically and laterally, eg Total
Moisture (16 - 20 per cent), Raw Ash (8 - 28 per cent), Iron
oxide in Coal Ash (0.5 - 72.0 per cent), and Initial Deformation
7
1
Temperature, reducing atmosphere (1080 - 1600+"C).
BULK DENSITY
-room
41 I
sou 3OPO O1 I The ash content of a coal sample is the weight percentage :of
FIG2 - Long-spaced density geophysical response for borehole C2027
Historically. Callide has experienced sporadic supply problems
to its customers. When mining from various sections of its
deposits, coal with an unusually high and variable iron oxide in
ash content is encountered. Iron contents above 19 per cent
appear to be a pre-condition, if not probably causation. of
slagging in boilers. A lack of information for mining planning
purposes prompted a major investigation into explaining the iron
oxide's formation, Occurrence and measurement. The work
program was performed by Technical Services staff in
combination with external academic researchers.
322 Coolurn. Qld. 14
I
Throughout 1993. a number of these research projects rclajcd
to gaining a preliminary understanding of the iron distributi,on
and formation at Boundary Hill Mine were undertaken: I
Dr J Patterson. CSlRO - Ilivision of Coal and Energy
Technology (Patterson and Marvig, 1993) investigated
through SEM techniques the mineralogy of iron species:
Ilr J Esterle, CSIKO - Division of Exploration and Mining
(Esterle 1994) examined the vertical and lateral variability; in
petrographic composition and iron content in the context,of
the geological environment under which the deposit formed:
Dr C R Fielding. University of Queensland (Fielding 1993)
investigated the sedimentological and structural controls on
high iron distribution; and
Dr E Baafi, University of Wollongong (Baafi, 1993) began
preliminary investigations into using indicator kriging and/or
conditional simulation as suitable modelling algorithms for
predicting the bchaviour of the iron content on a
seam-by-seam basis.
Prior to July 1993, Auslog performed the field logging portion
of the task. In July 1993, Callide commissioned its own Sirolog
probes and has been using these successfully since then. The
information gained enables updating of the geological quality
databases which in turn allowed rigorous statistical analyses 'of
available values (by seam).
I
SIROLOG METHODOLOGY
It has been shown through past research and practice at Ciillide
that the prompt neutron-gamma method (neutron-capture) can be
employed for the determination of ash and some of its
constituents in coal seams which are intersected by boreholes
(Charbucinski et al, 1986; Biggs 1990, I99 I ; Borsaru et nl. 1991.
1993a. b).
All the boreholes logged arc water-filled and the probe is
centraliscd during logging operations. The logging probe used, is
of 70 mm external diameter and is fabricated from aluminium
3.2 mm thick. The scintillation detector in the probe is a 76 x 38
mm BGO (Bi4Ge3012) detector. To protect the detector, the
section of the exterior of the robe barrel around i t (about 40 cm
in length). is painted with 'Bs. This reduces the background'in
the capture spectrum produced by the thermal neutrons which
interact with the probe, the photomultiplier and the electronic
components.
The neutron source used was initially 5.0 pg of *%f (soutce
activity = 118.4 MBq). Owing to the rate of source decay, this
was replaced by a 10 pg source in 1997. The source to detector
distance is 15 cm. The capture spectrum is dumped onto the hard
disk on the logging vehicle's desktop computer for every I O cm
logged. The logging speed is 2.5 d m i n .
PRINCIPLE OF RAW ASH DETERMINATION !
residue after combustion: and is closely .related to the mineral
content of coal. The determination of ash in coal seams by the
neutron-gamma method relies on the correlation between ash
content and a combination of two or three of the main
constituents of ash, such as AI, Si and Fe (see Figure 3). Since
the reaction probability of capture-gamma ray emission per
nucleus for AI is much lower than for Si and Fe. the
determination of ash relies mostly on the correlation between ash
content and the sum of Fe and Si contents (Charbuckinski et el.
1986).
The neutron-capture technique can cope with wide variations
in Fe or Si, because their contributions to the ash are measured
separately in the capture spectrum and not through the average
atomic number (Zeq) used in the gamma-gamma method
(Borsaru et al, 1993b).
- 17 May1 2000 4th InternationalMining Geology Conference
!
I
 APPLICATION OF THE SIKOLOG DOWNHOLH GEOPHYSICAL TOOL

The logging method described here employs the neutron Boundary Hill Mine-AI Seam
capture reaction. The compound nucleus formed in neutron
capture decays almost instantaneously, emitting gamma Correlation Between Ash, I ron, and Silica
radiation. Owing to its high hydrogen content, coal is an Iron Oxide in Ash %
excellent matrix for this technique. The neutrons emitted are
thermalised by colliding with the hydrogen nuclei present i n
coal. and they subsequently interact with the nuclei from the coal
matrix. An advantage of this technique is that the major gamma
rays, produced by the main constituents of the mineral matter in t
30 .
coal (AI, Si, Fe, Ca, Ti, S), have energies above 3 MeV (Table I).
This level makes the prompt neutron-gamma method less
sensitive to interferences from other neutron interactions
(Charbuckinski er al, 1986).
An example of ;I lull neutron-gamma spectra in a coal seam
(for a high ash, moderate Fe zone) is shown in Figure 4. The
peaks seen in the spectra are from B (0.48 MeV), H (2.22 MeV), 11 I
and Si (3.54and 4.93 MeV). The resolution of the BGO detector 504'5L.. ' 1
z

and the counting statistics are insufficient to observe clearly

40 35"-
identifiable peaks corresponding to Fe. AI, Ca, and Ti. Although
individual concentrations cannot be measured, it is possible to set 30 \/
windows in the spectrum which correspond to combinations of 25 8
Silica Oxide in Ash % Raw Ash % (ar)
these elements. Current calibration equations for ash integrate
counts in the 2.6 - S . 18 MeV region.
FIG3 - Graph of ash Vs Si and Fc for the AI seam

PRINCIPLE OF IRON DETERMINATION

The variation in the concentration of Fe in the two coal zones
from the same borehole as displayed in Figure 4 is evident in
Figure S through the variation in the intensity of the dominant Fe
peaks at 7.63, 7.64, and 9.30 MeV in the capture spectrum (these
are not separated due to the poor resolution of the scintillation
detector). The two gamma-ray spectra shown were calculated
averaging the count rates over an approximately 2 m thick
interval, one having low ash and Fe and the other high ash and
moderate Fe. Fe values are calculated by integrating counts in the
energy window 7.0 - 8.0 MeV and divided by the count-rate in
the energy window 2.08 - 2.38 MeV (H). This window measures
the variation of the thermal neutron flux surrounding the probe at 6.38 12.40 I
the location of the BGO detector (Borsaru el al, 1988). 4.93 62.70
Iron-sourced gamma rays have higher energies than many .. 3.54
~. _.
gamma rays released in capture process by other elements Chlorine 33.00 7.41 ,

commonly present in coal, and therefore are easily (35.45) 7.79

distinguishable in the neutron-gamma spectrum. Possible
interference could be produced by CI (7.41.7.79 MeV) if present
in noticeable quantities (Borsaru et (11, 1991). When there is a
large variation in Si (7.20 MeV) and AI (7.69, 7.72 MeV) in the
coal seams, they can also present a source of interference,
although not of significant magnitude.

DATA INTERPRETATION AND DISPLAY

Gamma-ray spectra recorded downhole are transferred to a
binary raw data file. Modularised, Windows-based interpretation
software (Winview) has been developed in collaboration with the
CSlRO -Division of Exploration and Mining to allow processing
of this data on desktop or notebook computers (Figure 6).
Options include nomination of variables of interest, eg density, Calcium 6.42 38.90 I
display, seadinterval selection, calculation of quality parameters (40.08) 4.42 14.90
1.94 . 72.50 j
and output of data to printer or ASCII files for transfer to -
--

spreadsheet or other mine planning software. Figure 7 displays Sulphur 8.60 j 2.70 i
ash and iron ratio trace data transferred to spreadsheet for a
borehole with high iron in ash levels, revealing the variable
(32.06)
i o.52 1 7.80
5.42
!
I
3.90
59.10
!
4.87 ~ 11.50 ,
nature of the iron distribution and its effect on the ash ratio I
values (and subsequent raw ash estimates).
I

I
I
3.22
2.93
2.38
I
I
27.10
22.30
44.50
i
I

STATISTICAL ANALYSES j . ~ -1 084 I 75.50 j

Data provided by the SIROLOG probe was used as an adjunct to Modified after Charbucinski et ol (I986).
existing laboratory analyses to enable interrogation of iron

4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000 323
 i i
W NICHOLS

I
variations on seam by seam basis. Basi statistical analyses
have been undertakcn by both mine personnel and Dr E Baafi
(Baafi, 1993). He found that there is a significant difference in
the number of samples for each seam (as much as at least twice
SIROLOG iron data compared with the number of analytical
data). This effect is greater for the lower seams where the
number of samples decrease (see Figure 8). In general, hoth the
mcan and median of iron do not vary considerably from seiim: to
seam, with the A3X having both the highest mean and variability
of iron, while the AS seam has the lowest mcan and variability. in I1
Fe.

Boron
Boundary Hill : C2922

iaaaaa
-
Spectrum : 61.90 63.20 m
26.8 X raw ash 10000
16.42X iron in ash
1000
100
10
1
0.1

Energy Kev

FIG4 - Full neutron-gamma spectra in a coal seam for a high ash. moderate iron zone.

.. -. .. .._. -
I
. ..

1
~

Borehole C2922
Detailed Neutron-Gamma Spectrum
200
190
iao
170
I60
150
140
130
9
m 120

-
t
I10
100

:: ;:
3 90

60
50
40
30
20
IO
0

Energy (KeV)

Flci 5 - Intensity of the two dominant iron peaks in the capture spectrum.

i
324 Coolum. Old. 14 - 17 May 2000 4th International Mining Geology ConferenFe
 APPLICATION OF THE SIROLOG DOWNHOLE GEOPHYSICAL TOOL

FIG6 - Windows-based interpretation software (Winview).

BOUNDARY HILI, : (22922

N-G SIROI,OG TRACE

Iron
Ash Ratlo I

DepthDavnhole (m)

Fici 7 - Ash and iron ratio wace data transferred to spreadsheet.

Figure 9 graphically displays a comparison between laboratory
analyses and SIROLOG estimates, by seam, for ash and iron in
the original calibration cored holes. Baafi (1993) found
significant correlations between analysed iron and silica,
aluminium and SIROLOG iron. The ash estimates from the
neutron gamma SIROLOG system (between the original
calibration ranges of nine to 40 per cent) are highly correlated
with lab analyses (r2 = 0.93 ; rms deviation = 1.94 per cent ash).
More scatter is seen for the iron estimates (r2 S . 7 9 ; rms
deviation = 0.88 per cent total iron), with Biggs (1991)
accounting for the difference between an analysed and a derived
iron value as being due to one or a combination of the following
factors:
The drill core samples used for calibration arc smaller
samples than that logged by the SIROLOG probe and are less
-
representative (100 mm versus IO00 mm)
Calibration is based on plotting ash and ash analyses versus
probe response to obtain the linear relationships. Australian
black coals commonly contain one per cent carbonate which
is lost upon ignition, and consequently is not accounted for
by the multiple linear relationship.
Sample laboratory error.
Random error.
Histograms were plotted for both the analytical and SIROLOG
estimated iron values for each seam. In general most iron
populations are normally distributed, the SIROLOG estimates

4th International Mining Geology Conference -

Coolum, Old, 14 17 May 2000 325
, W NICHOLS

Boiiiidary Hill December 1993

Comparison Between Analysed and Estiina ted Iron
20 250
T
I8 I
16 200
\o

z:
14

;2 12
.5 150
0

3g 8 100
' 6

4 50
2

0
BJ B3 B2 B1 A5 A42 A41 A3X A3 A2 A1 AH1 1 0LABORATORY
czzl SIROlDG

Seam

FIG8 - Comparison of real data and SIROLOG estimated data

TARLE 2
Principle iron-bearing minerals identified in Cullide coal.

Group
.
Mineral
. . .
Formula
. -
!
!
Abundance range
(70vol of mineral matter) ; ..- I
!

I
Silicates ! Illite. Illite-smectite K(AI.Fe)i AI(Si3Oid(OH)zHzO 0- 1

i;
Expandable lattice clays Variable
I
I
I
Chlorite
.Biotite
'
(Mg.Fe.A1)6(AlSi40111)(0H)z I

K ( M ~ . F c ) ~ ( A ! S ~ ~ O I I I ) ( O H ) ~1.
0-1
trace
I '

I--. .. - - - i -
- . .. . .. - Face .
I Oxides Goethite
Haematite
Limonite
HFeO2 or FeO.OH
Fez03
FeO(OH).nHzO I
i 0 - 20
0 - IO
trace
Ilmenite .. FeI-107 . ... . trace _- I
Sjderite FeCO3 I ... 0-79 -
# I
II
' I
Pyrite FeS2 0-3
Chalcopyrite CuFeS2 trace
Pyrrhotite .. Fe(I& . trace i

Sulphates
-. ---.i
~ Coquimbite Fe:ez(S0~)~.9HzO trace I
, !
.

Halotrichite FeA12(SO4).22H20 trace

Natrojarosite NaFe36OMOHb trace ! j
I I
- Copiatite . . . . .. . Fei40dS04h~63H20.. i . tract=-.. 1 ;

After Biggs (199.5). I

tend to be more symmetrically distributed than the analytical iron
grades (the analytical values are slightly positively skewed), but
this may be due to the reduced number of data points used
(Baati, 1993)
CHARACTERISATION OF MINERAL MATTER
Detailed work on mineral matter has been undertaken by the
following:
Ward (1990) who subjected coal samples to low temperature
radio-frequency ashing and XRD techniques;
Faraj ( 1993); and
Patterson and Marvig (1993). whose work involved scanning
electron microscopy and microprobe analyses of coal seam
composites. Results of this work are summarised in Table 2.
The important minerals detected in Callide Basin coals wcre in
decreasing order. kaolinite, siderite, goethite, quartL and pyrite.
Trace minerals detected were titanium oxide, ilmenite,
pyrrhotite, sphalerite, zircon and chalcopyrite. Calcium and
magnesium appear to bc organically bound in the coal. Three
iron containing minerals, siderite, goethite and pyrite account for
the bulk of iron present in the coal samples examined. The
siderite has been found to be partially oxidised to an iron
hydroxide phase, suggested to be cryptocrystalline goethite

326 Coolum. Old. 14 - 17 May 2000 41h International Mining Geology Conference
 APPLICATION OF THE SIROLOG DOWNHOLE GEOPHYSICAL TOOL

Boundary Hill Blocks 8-1 0,1986-9

g-g raw Aah SIROLOG calibration
+ Seam Composites

-Linear (Seam
Composites)

y = 0.9648~
+ 1.5401
R2= 0.9258

5 10 15 20 25 30 35 40
Lab Raw Ash ("/. ar)

Boundary Hill Blocks 8-1 0,1990

n-g iron SIROLOG calibration
7.00
C2866.QO910
6.00
c
-
-g 5.00 -Linear (C2866,
# 4.00 40910)

so0
5 2.00 y = 0.8393~+ 0.8884
p- 1.00 R2= 0.7945
v, 0.00
0.00 1.00 2.00 3.00 4.00 5.00 6.00
Lab Total Iron %

Boundary Hill Blocks 8-10,1992

n-g silica SIROLOG calibration
55

5.-c 50
545
.-0
- u )
0

w t40
w '0
o\e 3 5
y = 0.9648~+ 1.5401
E
z
i 30 R2= 0.9258
u)
UI
25
30 35 40 45 50
Holes
Lab Silica in Ash (% db) -Linear (Blocks 8 8
Q u a l i Holes)

F a 9 - Graph of the comparison between laboratory analyses and SIROLOG estimates

4th International Mining Geology Conference Coolurn. Old, 14 - 17 May 2000 327
W NICHOLS
(FeOOH). While relative amounts of siderite and associated
goethite are not known, these minerals are dominant throughout
and i t is clear that changes in their abundance account for the
high and variable iron contents of coal (Patterson and Marvig,
1993).
Additionally, two main forms of siderite with essentially
identical chemical composition were observed by Faraj (1993) in
variable amounts:
a. siderite nodules formed early in diagenesis; and
b. cleavvein and other infillings in coal, presumably formed
much later after consolidation of the coal.
The chemical composition of siderite was essentially the same
regardless of form, locality or stratigraphic depth and, therefore,
is not a useful indicator of changes in depositional environment
or different stages of diagenesis. The average formula
determined by Patterson and Marvig ( 1993) is Feo 9.5 Mno.02
Caoo1C03.
Attempts were made to investigate the correlation of
SIKOLOG iron and silica data with mineral matter
determination. However, the simple mineralogy and known
chemistry of the major minerals do allow for good estimates of
siderite and pyrite contents to be obtained from chemical
analyses for inorganic C and pyritic S in the coal. The balance of
total iron could then be expressed as goethite.
lRON FACIES DISTRIBUTION
Fielding (1993) has studied the distribution and origin of the iron
facies from a geological perspective by combining outcrop
observations with detailed chemical analyses of core samples,
SIROLOG iron trace fence diagrams, and a more extensive set of
SIROLOG iron estimates and chemical analyses on a seam by
seam basis.
Contouring of iron in ash was initially conducted on a scam
basis and this revealed a pattern of east-north-east trending highs
and lows, in positions which varied between scams. This trend is
coincident with the dominant orthogonal joint sets (50' and
310") in the mine, as defined in igneous intrusions, faults, joints,
coal cleats and air-photo h e a r s . However, both outcrop
observations and quantitative iron data suggest that the
distribution of iron is too complex to be adequately expressed in
scam by scam maps. Rather, iron minerals occur as an
overlapping network of laterally discontinuous patches and zones
throughout the coal body, across the mine area. To overcome
this, a working section composited iron colour-shaded contour
map was generated. There appears to be some general
association with structural features.
Fielding ( 1 993). in agreement with previous workers, found
that much of the iron is present as siderite, but in two forms. The
first phase of siderite formed during the accumulation of shallow
burial of the formative peat. A second, more widely distributed
phase, formed much later at elevated temperatures and associated
with circulating groundwaters. The second phase overlaps
considerably with the first. but is concentrated along thin beds of
powdcrcd coal (sooty coal); adjacent to clastic partings; along
structural discontinuities; and near igneous intrusions and mafic
dykes (Godfrey 1994).
Fielding ( I 993) noted that iron estimates from the SIROLOG
probe were only generalising the iron occurrence and could not
differentiate between these different phases. However, the
technique should be used in conjunction with:
aerial mapping of zones of structural disturbance,
isopach mapping of clastic partings,
delineation of areas and scams affected by structuring, and
adjacent to thick clastic partings.
328 Coolurn. Old, 14
I
COAL PETROLOGY
In conjunction with Fielding's study. a detailed petrographic
study was undertaken by Esterle (1994) to determine whether
high iron occurrence could be related to coal facies distributibns
within the seams. This study examined the vertical and lateral 1
variability in petrographic composition and iron content in the
context of the geological environment under which the deposit I
formed. One of the objectives was to determine the relationship
between coal facies distribution and quality, including iron
contcnt and SIROLOG traces.
Esterle (1994) found that, for Boundary Hill. detaiicd
examination of high peaks on the SIROLOG iron ratio traces
('FERAT') show that they can be correlated for up to 5001m.
Although high iron zones occurring vertically within scams ;ire
often associated spatially with clastic partings (as exemplificd,by
peaks in the FEKAT traces) there is no statistical relationship
between raw ash yield and high iron.
The vertical variability in iron content of coal scams within a
profile is not consistent, even across separate deposits within the
basin. However. correlations can be made between closely
spaced boreholes. As previously mentioned, the SIKOLOG
FEKAT traces in some boreholes show iron peaks occurring at
1 to 3 m spacings within seams, and between visible clastic
partings, similar to the spacings of petrographic cycle
boundaries.
Previous work by Esterlc (1992) had established that. for
Callidc Coal, vitrinite content can be reasonably estimated frbm
volatile matter (on a daf basis). It was hoped that SIROLOG
could be used to estimate macerals. Esterle ( 1 994) conducted a
comparison of iron content with petrographic composition for
borehole L2916. As suggested by the comparisons of iron with
megascopic coal types and raw ash, there is no direct correlation
between iron content and maceral composition. In this borehole.
iron contents arc highest in the top and bottom of the A2 to A41
sequence, subjacent to the roof and floor.
. ,
CONCLUSIONS
During 1993 research was undertaken on a number of topics
relating to examining the high and variable iron in ash content,of
Boundary Hill. Although it was only one of a number :of
techniques used, information gained from configuring thc
SIROLOG probe to measure in situ raw ash, silica and iron
provided a major adjunct to existing laboratory analyses.
Examination of downhole traces complemented mapping of
highwall exposures, and indeed did highlight that the rates, of
spatial variability in iron content are high. Other techniques were
used by researchers to identify two phases of emplacement of the
major iron mineral - siderite. One phase is thought to occur
syngenetically-epigenetically with peat accumulation and early
burial history, whereas the other is post-coalification and
associated with intrusive volcanics and groundwater movement.
This variability creates difficulties in predicting zones of high
iron in advance of mining.
Variations between iron predictions and as-dispatched qual,ity
arc thought to be due to blending operations and the difficulties
in accurately representing reality using grid-based modelling
algorithims. Detailed investigations of mineral and maceral
associations by Esterle (1994) suggest that a cyclicity , in
petrographic variation within scam profiles occurs, and this can
be related to episodic flooding with water (both laden with, and
devoid of, sediment) during the peat accumulation of the seams.
These flooding events control the mineable geometry of the
deposits by means of simple scam splitting and increase in raw
ash contents, as shown in SIROLOG fence diagrams.
The scale of vertical variability in iron parallels the cyclicity in
maceral composition in the northern end of the mine, but not the
southern (Esterle 1994). Seam splitting and thinning is also more
- 17 May 2000 4th International Mining Geology Confererke

common in the northern area. However, work by Fielding (1993)
suggests that much of the iron mineralisation is secondary and
distributed relative to the structural grain of the geology, rather
than the sedimentological features. T h e proportions of each
phase are a s yet unknown. SIROLOG is a unsuitable tool in this
regard. being only capable of measuring total element (eg iron)
concentrations.
At the highwall scale. iron mineralisation decreases rapidly
(within a lew hundred metres) away from dykes, faults and
joints. I t is suggested that in addition to following vertical
features such a s faults/joints and cleat, secondary iron
mineralisation in these areas of high iron have followed
horizontal discontinuities within scams. These discontinuities
were created by clastic partings, boundaries between
petrographic cycles, small scale erosive features and fracture
zones caused by compressive deformation (Esterle, 1994:
Godfrey. 1994).
T h e use of' SIROLOG has contributed significantly to this iron
study in three areas. T h e system was lirstly utilised as a source of
routine downhole geophysical data, providing detailed
information on seam thickness and correlation. and the presence
and thickness of clastic partings. Additionally it significantly
enhanced the deposits' coal quality database by the ability of
on-site technical personnel to generate satisfactorily accurate raw
coal quality estimates of in situ ash, silica and total iron. Finally,
relevant data was transferred to sophisticated mine planning
software which enabled a series of fence diagrams and colour
shaded contour maps to be generated, so as t o investigate the
vertical a d lateral distribution of iron facies across the deposit.
Work is continuing in examining in more detail the correlation
of S[ROLOG iron traces between drillholes and other coal
quality parameters such as macerals, mineral matter and ash
lusion temperatures
REFERENCES
Haafi. E, 1993. Basic Data Analysis of Iron Values Callide Coalfields -
Boundary Hill Mine. pp 1-18. unpuhlished report (Dept Civil and
Mining Engineering, University of Wollongong).
Higgs. M S . 1990. The Use of New Techniques in Computerised Data
Recording and Downhole Geophysical Logging using SIROLOG
During Drilling Programs at Callide Coalfields. in Proceedingr of
rlie B o w t i Basiti Sjmposiiorr 1990. pp 163- 180, (Ed: J W Beeston).
Gcol Soc Aust (old). Mackay. September 1990.
Higgs. M S. 1991. The Application of Neutron-Gamma Sirolog to
Estimate Iron Content in Coal and Implication for Estimating Ash
Fusion Characteristics. in Prnceedings Queenshnd C o d Sytnposiurn.
pp 187- 198 (The Australasian Institute of Mining and Metallurgy-
Melhoumc).
4th International Mining Geology Conference Coolum. Qld.
APPLICATION OF THE SIROLOG DOWNHOLE GEOPHYSICAL TOOL
Biggs. M S . Burgess. A W and Patrick, R B. 199s. Callide Basin, in
G e o l o p r!fAustrti/uiti C o d &isins. (Eds: C R Ward. H J Harrington.
C W Mallet and J W Beeston). pp 471-488. Geological Society of
Australia Coal Geology Group Special Publication.
Borsaru. M. Charbucinski. J. Huppert. P. Youl, S F and Eisler. P L, 1988.
Coal Ash Determination in Dry Boreholes by the Neut;on Capture
Technique. Nucleci r Geophyics. 2(4):20 1 - 206.
Borsaru, M, Eisler, P L and Youl. S E 1991. Neutron-Gamma Logging in
Coal Seams of Variable Iron Content, Nucletir Geophysics.
S(I/2):117-122.
Borsaru. M, Riggs. M S and Nichols, W J F, 1993a. Neutron-Gamma
Logging for Iron in Coal and Implications for Fstimating the Ash
Fusion Characteristics at Callide Mine. Nudecir Geophyticc.
7(4):539-545.
Borsaru. M. Millitz, P and Ceravolo. C. 1993b. Comparison Between the
Neutron-Gamma and Gamma- Gamma Techniques for Ash
Prediction in 140mm Iliameter Quality Holes at the Callide Mine.
Nirc1ecir Geophysics. 7( I ) : 125-132.
Charbucinski. J , You1 S F. Eisler P L and Horsaru. M, 1086. Prompt
Neutron Gamma Logging for Coal Ash in Water Filled Boreholes.
GerJph).Tf".T. 5 I(5): I 1 10-I I 18.
Esterle. J S, 1992. Maceral Reflectance Vxiability and Recognition in
Callide Coals - Report IK 174. pp 1-30. CSIKO Division of
Geomechanics. unpublished report, (December 1992).
Esterle. J S, 1994. Petrographic Variation in Coal Seams at Boundary Hill
Mine. Callide Coalfields, and it's relation to Iron Content - Report
SA, pp 1-45, CSlRO Division of Exploration and Mining,
unpublished report (Jan).
Fielding, C R. 1993. Origin and Distribution of Iron-Bearing Minerals in
Coal Seams at the Boundary Hill Mine. pp 1-12. Dept of Earth
Sciences. University of Queensland. unpublished report. (Nov).
Faraj, R S M, 1993. Investigations into Iron Mineralisation in Boundary
Hill Coal. pp 1-3. Dep of Earth Sciences. University of Queensland.
unpublished report, (25 May 1953).
Godfrey, N H. 1994. Brief report on Trial Highwall Mapping of Geology
at Boundary Hill Pit Box Cut. Callide Coal Mine. pp 1-18. Gary
Leblang and Associates, unpublished report to Callide Coalfields.
Patterson. J H and Marvig. P, 1993. Characterisation of Iron Containing
Minerals in Callide Basin Coals, Report CET/lR184R. pp 1-10.
CSIRO - Division of Coal and Energy Technology. unpublished
report. (December).
Ward, C R. 1990. Mineral Matter Analysis of Coal Sainplcs from Cailide.
Queensland - Report R68S. pp 1-16. Unisearch. University of New
South Wales. unpublished report.
14 - 17 May 2000 329
 I

!
I

330 Coolum, Old, 14 - 17 May 2000 4th International Mining Geology Conference
!
Microseismic Monitoring of Shear Zones and Related Seismic
Activity at Broken Hill
A J Morley', J M Murray' and G C Reed'
ABSTRACT
During more than 100 years continuous mining of the lead-zinc orebody
at Broken Hill. an immense amount of geological data has been collected
about shear zones related to the orebody. The challenge to current mine
gcologists is to synthesist: and interpret these data sets in a way that is
applicable to production demands. Precise knowledge of the locations of
major shear zones is important not only for the determination of ground
conditions hut also to develop an understanding of ore rernobilisation
along these structures.
Traditionally. geological information has been collected from drill core
and hack and wall mapping underground, and interpreted on sections that
are approximately 20 m apart. The recent introduction of Maptek's
Vulcan software has enabled the shear zones to be modelled in three
dimensions.
The new thrw-dimensional shear models have been combined with
seismic data from the Southern Cross area. The seismic data is collected
from a microseismic monitoring system installed in the Pasminco
Southern Opcrations in August 1996 (Kauert and Tully. 1998). The
addition of seismic information to the shear zone models has led to a
greater dcgree of certainty about the shear zone locations and has
provided information about shear zones in areas yet to be drilled.
I. GAuslMM. Mine Geology Department, Pasminco Broken Hill Mine,
PO Box 460. Broken Hill NSW 2880.
FIG I - Location of the Pasminco Broken Hill Mine Southern Mine Leases
4th International Mining Geology Conference Coolum. Qld. 14 - 17 May 2000
INTRODUCTION
The Broken Hill lead-zinc-silver orebody is situated in far
western New South Wales, Australia at latitude 31"SS'S.
longitude 141'28'E. approximately 1200 km west o f Sydney
(Figure I).
The, deposit lies within the Willyama Supergroup in the
Broken Hill Block; one of several inliers of Early to Middle
Proterozoic basement rocks in western New South Wales and
eastern South Australia (Willis et al, 1983). The orebody is
hosted by the Broken Hill Group and charactcrised by high-grade
(amphibolite to granulite facies) metamorphic mineral
assemblages overprinting the sedimentary protolith. Several
periods of deformation are evidcnt, coincident with a complex
structural and metamorphic history.
The Broken Hill orebody has a strike length of 7 km, is
comprised of a stacked series of lead-rich and zinc-rich lenses
and, prior to mining, contained 300 million tonnes of ore grading
over IS per cent combined lead and zinc (Haydon and
McConachy, 1987).
Pasminco's Southern Operation, an amalgamation of workings
accessed by the New Broken Hill Consolidated (NHHC), Zinc
Corporation (ZC) and Southern Cross shafts, is the only active
underground mine on the main Broken Hill orebody at present.
33 1 I
A J MORLEY, J M MURRAY and G C REED
The dominant mining method used at Broken Hill is longhole
open stoping. Mining has reached a depth of 1.2 km from the
surface and a final depth of 1.4 km will he achieved before the
mine is closed.
Approximately 2.8 Mtpa are mined and the March 1999
reserve estimate stands at 17.9 Mt at 4.0 per cent lead, 7 3 per
cent zinc and 41 g/t silver (Lutherborrow, 1999).
The Southern Cross area of the mine is becoming increasingly
important to mine production as the famous argentiferous Lead
Lodes are depleted. Southern Cross is situated at the southern
extremities of the orebody (Figure I ) and encompasses the
southernmost ends of the zinc-rich A. H and C lodes. as well as
the shear-zone hounded South Eastern A Lode (SEAL).
PREVIOUS WORK
The geology of the Broken Hill orebody has been described by
numerous authors and will not be discussed in detail here. Recent
key reference papers include Haydon and McConachy (1987).
Mackenzie and Davies ( 1 990) and Morland and Webster (1998).
Structural geology
The structural geology of the Broken Hill ore deposit and
surrounding area is complex, and remains in dispute. Archibald
(1978). Marjoribanks er ul (1980) and Hobbs er nl (1984) have
described the regional structural geology of the Broken Hill
Block. Numerous papers and theses have focussed on the
structure of the Broken Hill orebody itself, including the early
general reviews of Andrews ( 1922) and Kenny ( I 932). In a major
geological review of the Broken Hill region, Gustafson (1939)
described a zone of attenuation on the eastern side of the orebody
named the Main Shear.
The structural control on the orebody has been reviewed by
liobbs et (11 ( 1968). Both and Rutland ( 1 976) and more recently
by Webster (1993, 1994). Laing, Marjoribanks and Rutland
(1978) used graded bedding as facing indicator to propose that
the mine sequence occurred on the inverted limb of a regional
nappe structure. Other recent hypotheses include Findlay (1994)
who described the Broken Hill orebody as a large-scale
boudinage-hosted deposit and White (1994) who refuted the
presence of a regional nappe structure and claimed that later
phases of folding were the result of regional thrust shearing.
Mine geology
Mine geologists at Broken Hill have traditionally used the
information gained from drillcore and underground mapping to
predict the position of shear zones in the vicinity of the ore. The
shear zones are then interpreted on sections that are
approximately 20 m apart. A three-dimensional model is created
from these sections using Maptek's Vulcan software. In areas of
ample drilling and development. the position of these structures
is accurately constrained.
The depletion of the more accessible parts of the original
resource means that new drives and stopes are being developed in
areas with little existing information. Drilling is often
inadequately spaced to predict the presence of shear zones in the
footwall. This has caused problems with ground support in recent
access development in the Southern Cross area in particular. The
challenge is to use different techniques to predict the presence
and intensity of these shear zones, and to divert planned
development away from the most sheared areas.
Microseismic monitoring system
A microseismic monitoring system devised by Integrated
Seismic System International (ISS) was installed at the Pasminco
332 Coolurn, Qld. 14 - 17 May 2000
Southern Operations i n August 1996 (Raucrt and Tully, 1998).
The system was later upgraded and expanded to include the
NBHC/ZC areas (Tully. 1997). Muliadi (1907) used t,he
monitoring system to model principal stress direction regimes
and failure criteria in the Southern A Lode. Microseismic data
from the system have also k e n analysed by ISS pursonnel to
interpret and explain events of unusually large magnitude
(Siggins. 1997).
MICROSEISMIC SYSTEM DESCRIPTION ,
The Southern Cross microseismic monitoring system comprises
six triaxial geophone sites scattered at an approximately regular
spacing (350 m vertically, SO0 m along strike. 400 m across
strike) throughout the Southern Cross mine area. Each site
consists of a geophone; power supply; and processing
seismometer (Figure 2). which digitises and saves the seismic
information, then processes the waveforms. This information is
periodically sent to a network multiplexer, which combines the
signals from all geophones and transmits the information to a
fibre optic line driver.
The signal is broadcast via optic fibre to the surface where it' is
decoded by a fibre optic concentrator. From there i t is transmitied
to a Silicon Graphics lndy Unix computer workstation, to be
processed by the Rock Mechanics Engineer. The seismic data
can then br cxported to Vulcan software for geological modelling
(Rauert and Tully, 1998).
The Southern Cross system was expanded and updated ;to
include the NBHC/ZC area in 1999. A n additional eight
monitoring sites were installed (Tully, 1997). Geophone receivers
were replaced by accelerometers in the expanded system to limit
the amount of resonance in the signal. The array has been tested
using an explosive charge at a known position. In the Southern
Cross area the position of each recorded event is within IS m
accuracy of the seismic source (Rauert and Tully, 1998).
INFORMATION/RAW DATA
I
Introduction
Microseisms are defined as small motions of the earth that are
relatively short-lived ( 1 .O - 9.0 s). They are unrelated ,to
earthquakes and are usually induced by stress changes such as
mining (Bates and Jackson, 1987). More than 5700 microseismic
events have been recorded since the microseismic monitoring
system was installed (Tully, 1997).
Raw data
Each microseismic event generates an analogue signal which is
converted to a digital waveform at the surface by the monitoring
system. Each geophone or accelerometer site records
P (compressional) and S (shear) waveforms in three dimensions.
The microseismic monitoring system automatically interprets the
best fit to determine the relative timing of P and S events. This
interpretation is then validated manually by the rock mechanics
engineer. The system uses the timing between P and S events to
calculate a sphere ahout each point at which the microseism may
have occurred, known as the location sphere. The position of the
seismic event is constrained by determining the point at which
location spheres from at least three different recording stations
meet. A confidence level and location pick error are calculated
by the system to determine the accuracy of the data. An
acceptable location pick error is ten per cent of the distance
between microseismic event and geophone/accelerometer sites.
The magnitude of the microseismic event is calculated by the
monitoring system after the evcnt location is accurately
determined.
41h International Minhg Geology Conference
 MICROSEISMIC MONITORING OF SHEAR ZONES AND RELATED SEISMIC ACTIVITY

r
NBHC TELEPHONE I MINE DESIGN MCC
EXCKANGE
PASMINCO
WLCAN) I 0RO);TNlII1 L
I MINT
jOUMERN CROSS SOUTHERNCROSS
SHAFT TELEPHONE
EXCHANGE I
/ I
I
I

!Jsi!2@
16 LEVEL
'
8
ACCEL
CEO
ACCELEROMETER TRANSDUCER
GEClPHONE TRANSDUCER
PS
0 PS I S S PROCESSING
SEISMOUETER IO L M L
MS I S S MULTIPLE SEISMOMETER :CUDDY

FOU MULTIPLE CH Fl0REOPnC

MULTIPLEXER
FO FlBREOPT!CCABLE

I
- MIX I S S 16 CH MULTIPLEXER FUTURE SITE
.
I IAN EXISTING LOCAL AREA N E W R K

L. ELECT.CUDDY

Fic; 2 - Microseismic inonilonng system nctwork configuration (after Rauen and Tully, 1998).

Raw data in a practical form
Each microseismic event is assigned a location and magnitude.
These are displayed graphically as co-ordinates in
three-dimensional space, and coloured according to a legend
based on the Richter Scale magnitude of the occurrence. The
data is then exported to Vulcan and assigned to a specific Vulcan
layer based on the year of occurrence. These can be viewed
separately by mine geologists to determine broad differences in
seismic activity over time.
Events that are not recorded by three or more sites arc deleted
before they can he processed. This filters any signals which are
due to localised events, such as passing trucks. The distinctive
waveforms resulting from stope and development firing are also
excluded from the data set.
A 24-hour period may typically include 30 to 40 events
measuring less than one on the Richter scale. These events often
increase in magnitude and frequency when large stopcs are fired.
Microseismic activity may intensify for several weeks following
;I mass blast.
INTERPRETATION OF MICROSEISMIC DATA
AND COMPARISON WITH TRADITIONAL
GEOLOGICAL INTERPRETATIONS
The importance of accurate shear zone interpretations
Mine planning and production staff have always looked to
geologists for practical information about the orebody. Emphasis
has recently been placed on shear Lone interpretations by mine
geologists. This is due to a number of significant stope failures
and development problems, which are generally concentrated in
the Southern Cross area of the mine. The mine is increasingly
dependant on more marginal ore areas, so the need for accurate
stoping is growing. It is critical to halt occurrences of stope
dilution from hanging wall failure to maintain higher metal
grades.
Interpretation of raw data
The microseismic data points do not always occur exactly within
the shear zones. The centres of events are often focussed instead
in the more competent rocks along the edges of shear zones
(Figure 3 ) . It is here that sufficient stress is built up to cause a
seismic event. However, in areas where two major shear zones
intersect, there is a concentration of seismic points of all
magnitudes (Figure 4). Such zones produce the worst ground
conditions and occur consistently throughout the Southern Cross
area.
Comparison of microseismic data with geological
interpretations
The major shear zones in the mine are interpreted from drillcore
and underground mapping. These interpretations are then
digitised and modelled in three dimensions using the Vulcan
software.
Existing Vulcan three-dimensional shear zone models derived
from drillcore analysis and underground mapping are compared
with predicted shear zone locations from the microseismic
monitoring system. In areas of extensive drilling and geological

4th International Mining Geology Conference Coolum. Qld. 14 - 17 May 2000 333
 I I
I
I

A J MOKLEY. J M MURRAY and G C REED i ~

I
I

9500RL !
I

I
Legend:
Point magnitude
!
on Richter Scale: !
I
0 -5 to-l
- I too
0101
9400RL !
1 to 2

1 Interpreted shear I

zone

9300RL I
I

400m W 500mW 600m W 700m W !

i

I
FIG3 - Location of microseismic events along edges of interpreted shear zone position (geological cross-section 119s).

9500RL
I

Legend:
Point magnitude
on Richter Scale:
9400RL
0 -5 to-1
E -1 t o 0
Otol I
It02

\ Interpreted shear
9300RL zone

9200RI I

300mW 400mW 500mW 600m W

FIG4 - Cluster of microseismic points at the intersection of two shear zones (geological cross-section 107s)
I

I
I 334 Coolurn. Qld. 14 - 17 May 2000 4th International Mining Geology Conforepce

I
 MICROSEISMIC MONITORING OF SHEAR ZONES AND RELATED SEISMIC ACTIVITY
mapping, this comparison shows that there is a good correlation
between the microseismic data points and the interpreted shear
zones. This leads to a greater degree of certainty in the final
interpretation of the shear zone positions in more sparsely drilled
areas from the monitoring system. Microseismic data also
provides preliminary information about shear zones in areas that
are yet to be drilled.
DISCUSSION
Introduction
The microseismic system was originally installed in the mine to
create a database of seismic events to be used by the geotechnical
staff. I t was envisaged that this database would be most useful in
determining both background and mining-related seismicity.
Improved safety
The system is used to regularly monitor ground conditions and
rock strain and to determino safety conditions for the
underground workers. Regions of high-risk arc identified and
access is restricted to these areas until microseismic activity has
subsided. Seismic activity is discussed at production meetings
and the data is made available to thc Mine Control Centre which
is in continuous contact with all underground employees.
Practical application of the microseismic system to
geological interpretation
The application of the system to mine geology has only recently
been recogniscd. As new development is pushed into areas that
contain sparse drill hole information, more unorthodox forms of
96OORL
9500RL
9400RL
9300RL
200mW 300mW 400m W
FK;5 - Cluster of microseismic points that indicate the presence o f a flat stmcture. known as the Flat Fault (geological cross-seclion 103s)
4th International Mining Geology Conference Coolum. Old, 14 - 17 May 2000
data have become useful tools in the interpretation of the shear
zone positions.
As a stand-alone method, the microseismic system is not
entirely reliable in predicting the precise position of shear zones.
However, in combination with the information taken from
drillcore and wall mapping, more accurate results can be
achieved. In cases where the approximate position of the shear
zones is known. i t is possible to extrapolate shear zone
extensions with a greater degree of confidence using the seismic
event locations. Recent experience has shown that areas of
consistently large clusters of microseismic data points on
sections throughout the mine represent very poor ground
conditions that should be avoided in mine designs if possible.
Interpretation of the microseismic data points has led to the
discovery of large-scale structures not previously recognised by
geologists through drillcore interpretation and mapping. These
include a prominent flat-lying feature known informally by mine
geologists as the ‘Flat Fault’ (Figure 5 ) . The exact nature of this
structure is as yet unknown, but i t is implicated in the 1998
failure of the SEAL 104-107 stope, as well as instability in the
SAL4 and SAL5 slopes.
Exploration potential
The microseismic system also has potential as an exploration
tool within the near-mine area. Ore is commonly rcmobilised
along large-scale shear zones, such as the Main, Central and
Dropper Shears. Determining the existence and location of
similar shear zones in relation to the Broken Hill orebody may
lead to further ore discoveries. Application of microseismic
technology will play an important role in determining future
exploration targets.
Legend:
Point magnitude
on Richter Scale:
0 -5 t o - I
-1 too
0101
It02
\ Interpreted shear
zone
’, Interpreted Flat
’ Fault
500m W 600mW
335
 A J MOKLEY. J M MURRAY and G C REED
Limitations
I Data collected from the microseismic monitoring system is
subject to several limitations. Major seismic events are often
initiated by nearby mining activity. Some areas that appear to be
free from microseismic points in pre-mining data become quite
seismically active once mining has commenced. This becomes
problematic when mining development intersects shear zones
which were not seismically active at the time of mine design and
planning. T h e ground conditions in these areas can be worse than
predicted. In addition, the monitoring system at Broken Hill
opcrates in a very demanding environment. As a result the
I Pb-Zn-Ag mineralisation at Broken Hill, I:'c.otiotrik G F O ~ ~ J , ~ .
reliability of the system can be poor as there are often problems
with power supply fluctuations. I f less than three geophones
record an event. an accurate position of the epicentre can not be
determined.
I
Geological features such as major faults or unusual rock mass
characteristics can alter the microseismic signal received by the
geophones or accelerometer. This can usually b e compensated
for during the initial calibration of the system.
Another intrinsic limitation is that the frequency of
microseismic events is often higher than that of the geophones
resulting in resonance in the signal (Rauert and Tully, 1998).
This problem has been overcome by using accelerometers
instead of geophones in the NBHC/ZC area of the mine. however
geophones x e still in use in the Southern Cross area of the mine.
CONCLUSIONS
Accuracy checks on shear zone interpretations
Addition of the microseismic system t o geological interpretations
is still at an early stage. However it is already invaluable in the
refinement of existing shear zone models. and has been used
extensively to validate shear zone interpretations primarily based
on drillcore and mapping. T h e system has also proved very
useful in the extrapolation of shear zone interpretation into
poorly drilled areas.
Increased safety factors
T h e microseismic monitoring system has substantially increased
levels of safety involved in mining of the Broken Hill orebody. It
provides direct feedback on recent seismic events, and when
correlated with shcar zone interpretations. the microseismic data
enable mine geologists t o predict which areas will have the worst
ground conditions. Development and stoping can be designed to
avoid dangerous areas, so that underground mine staff arc less
exposed to working in sheared and unstable rocks.
ACKNOWLEDGEMENTS
T h e authors sincerely thank Neil Rauert and Kim Tully for their
advice and for permission t o reproduce figures from their work.
Many thanks also t o Helen Degeling, Giorgio Dall'armi and J J
Reed for their helpful comments. T h e contributions of all the
mine geologists that have worked underground at Broken Hill
throughout the life of the Line of Lode are gratefully
acknowledged. This paper is published with the permission of
Pasminco Broken Hill Mine.
REFERENCES
Andrews, E C. 1922. The geology of the Broken Hill District: Memoirs
of the Geological Survey of NSW, Geology, No 8.
Archibald. N J. 1978. Report on the 1977-78 phase of the Broken Hill
Lode Project. CRAE internal repart (unpublished).
336 Coolurn. Old. 14 - 17 May 2000
Bates. K L and Jackson. J A, 1987. Glo.vstrry of Geoloxy (Third Edifi,!ti).
p 422 (American Geological Institute. Alexandra. Virginia).
Both. R A and Kutland. R W R. 1976. The problem of identifying iind
interpreting stratiform ore bodies in highly metamorphosed terrains:
The Broken Hill example. in Hutidhook of Sfruftrhoioid turd
Strufifimn Ore Deposits (Ed: KH Wolf), Vol 4. pp 260-325 ~
Findlay. D. 1994. Geological Note. Boudinage. a reinterpretation of )he
structural control on the mineralisation at Broken Hill. Airs~rtrlitoi
Joirrnul of h r r h Scienr~er.4 1387-390.
Gustafson. J K. 1939. Geological investigation in Broken Hill. Fi,nul
L y ~ ~I939
Report ~ ~ t i f Ge~Jl~Jxic'tll
r d ~ y(unpublished).
.
Haydon, R C and McConachy. G W. 1987. The stratigraphic setting of
84: 1235-1261.
Hobbs. B E. Ranson. D M. Vernon. R H and Williams, P F, 1968. The
Broken Hill orebody. Australia. A review of recent work.
Minertrliutrr Depoxifu. 3:293-316.
Hobbs. B E, Archibald, N J, Elheridge. M E and Wall. V J, 1984.
Tectonic history of the Broken Hill Block, Australia. in Prc.c.trnibr;rtm
Tecloriic..~Illusfrured (Eds: A Krijner and R Geiling) pp 353-368
(E Schweiz Verlags: Stuttgart).
Kenny, E J, 1932. The Broken Hill lode - its geological structure. Proc
Austruhs Insr M i n Metull. 87:217-245.
Laing, W P, Marjorihanks, R W and Rutland, K W K. 1978. Structurk of
the Broken Hill Mine area and its significance for the gencsis of,the
orebodies, .h'oflf)trlic&okJxy, 73: I I 12-I 136.
Lutherborrow. C H, 1999. Pasminco Broken Hill Mine resource jind
reserve estimate at 31 March 1999. Pasminco internal coinpany
report (unpublished).
Marjoribanks, R W. Rutland, R W R. Glen, K A and Laing. W P: 1980.
The structure and tectonic evolution of the Broken Hill Region.
Australia. f recurnbriun Keseurch. 13:20%240.
Mackenzie, D H and Davies, K H, 1990. Broken Hill lead-silvcr-&
deposit at ZC Mines, in Geoloxy o f f h e Minerul Deposits ofAu.wuliu
rind fupua New Guineu (Ed: F E Hughes) pp 1079-1084. (The
Australasian Institute of Mining and Metallurgy: Melbourne).
Morland, K and Webster, A E. 1998. Broken Hill Lead-Silver-Zinc
Ikposit, in (;eo[oxy cf Ausfruliun und f q ~ i i uNew Guineon hfirrerd
Deposifr pp 619-626 (Eds: D Berkman and D Mackenzie) (The
Australasian Institute of Mining and Metallurgy: Melbourne). ,
Muliadi. 1997. The identification and behaviour of highly stressed rock
in the Broken Hill Mines. Master of Engineering (unpublished) in
Geological Engineering Thesis, Department of Civil and Geological
Engineering. Faculty of Engineering, Koyal Melbourne Institute of
Technology.
Rauert. N S and Tully. K P. 1998. Integration of a Microseismic
Monitoring System in Mining the Pasminco Broken Hill Southern
Cross Area, in Proceedinxs Seventh Underxmutrd Operufors'
Conference. pp I IS - 120 (The Australasian Institute of Mining hnd
Metallurgy: Melbourne).
Siggins, A F, 1997. Analysis of precursors to the seismic event of July
26. 1997. Confidential report to Pasminco Broken Hill. ISS Pacific
Pty Ltd, Melbourne (unpublished).
Tully, K P, 1997. Pasminco Broken Hill Mine application for capital
expenditure. Pasminco internal company memo (unpublished). I
Webster, A E, 1993. A structural interpretation of the Broken tlill
orebody as suggested by the internal features and macroscopic
geometry of the mineralisation, Geol Soc Ausr Abrfrucrs No 37, 1,2th
Geological Convention. Perth. September 1994.
Webster. A E, 1994. The Structure and Stratification of h a d Lode.
Southern Operations. Broken Hill, NSW. Australia. MSc Thesis
(unpublished). James Cook University of North Queensland.
Willis. I L. Brown. K E, Stroud, W J and Stevens. B P J, 1983. The Early
Proterozoic Willyama Supergroup: stratigraphic subdivision and
interpretation of high to low-grade metamorphic rocks in the Broken
Hill Block. New South Wales, Journul of fire Ge~J[ft$$CcIlSfJcief)'[JJ
Ausrruliu, 30: 195-224.
White, S H, 1994. Structural study of the shear zones in the Broken Hill
area. Pasminco Exploration Broken Hill internal report, PX IO28
(unpublished).
4th International Mining Geology Conference
Finding More Ore, Further From the Drill Hole, With DHMMR
J Bishop' and R Lewis2

ABSTRACT DHMMR (4
Drill hole magnetoinetric resistivity ( D I I M M R ) is a relatively recent transmitter diDole
addition to the explorationists' suite of techniques for finding further
resources in the vicinity of a drill hole. The method relies on gathering of
an applied current into zones which arc less rrsistive than the country
rocks and it was first applied to exploration programs looking for weakly
conductive sulphidrs. such as. for example. carbonate-hosted zinc
deposits. More recently. i t has k e n applied to n wider range of deposit
styles, including highly conductivc nickel sulphidcs. It has been found
that the technique is capable of not only detecting mineralisation not seen
by conventional electromagnetic (EM) techniques, but it can detect at a
greater distance. Also. whilst EM is superior at defining tabular-shapcd
conductors. OHMMR may be more effective at finding cigar shaped B field
sulphides. This paper presents a number of examples illustrating these
findings.

INTRODUCTION
Down-hole geophysical logging techniques are now a
well-established part of many in-mine and near-mine exploration
and development programs. A relatively new addition to the suite
of available methods is drill hole magnetometric resistivity
(DH M M R)
This technique was originally developed to detect poorly
conducting targets such as occur in many zinc deposits (eg
Bishop et nl. 1997) since the method merely requires a target
with a conductivity contrast rather than one with an absolute high
conductivity. However, it has since been successfully applied to
exploration programs where moderate to good to excellent
conductors were expected. Apart from a wider range of
conductivities, DHMMR will also de:ect rod and ribbon shaped
bodies at significant distances from the hole, which may only
weakly, i t at all. respond to other electrical techniques.
The DHMMR method has been successfully tried at a number
of mines encompassing a variety of commodities. This paper
presents data from surveys at gold, silver-lead-zinc, and nickel
mines. These examples demonstrate the method's ability to
deteci mineralisation insufficiently conductive or the wrong
'style' lor drill hole electromagnetics (IIHEM); to detect
sulphides at a significant distance from the hole and to place
them unambiguously o n one specific side of the hole.
THE DHMMR METHOD
The target zone is energised with a low frequency square wave
impressed into the earth via a grounded dipole which is laid out
in a ' U ' shape with the holes to be surveyed within the U. Dipole
lengths are typically 500 - 2000 m along strike and several holes
can he surveyed from the one dipole (Figure 1 a). The electrodes
may he on the surface and/or downhole. A standard IP
transmitter is used to produce the required current. which ideally
will he several amps.
The 'earth return' current seeks the path of least resistance
between the two dipole electrodes and thus any relatively
conductive zone such as a disseminated sulphide deposit will be
preferentially energised. The increased current density in the
target has :in associated magnetic field (B) and this is monitored
I MAuslMM. Applied Geophysical Research Ply Ltd. PO f3ox 974.
Sandy Hay Tas 7006.
2. Applied Geophysical Research Pty Ltd. PO Box 974. Sandy Bay
Tas 7 o l h
FIGI - (a) OHMMR layout. Current in the ground is defined to
flow from south to north and upwards is defined as positive.
(b) For east-facing drill holes, a hody above a hole will produce a
positive response and a negative response if helow the hole.
The opposite applies for west-facing holes.
with a standard DHEM probe which records a voltage
proportional to the time differential of the magnetic field (ie
dB/dt). The recorded dB/dt voltage (usually in microvolts) is
integrated to the magnetic field B (in picoTeslas per amp) and
corrected for the effect of the magnetic field due to the current
flowing in the wire and for the fields caused by the electrodes
and the background currents in the target host rocks.
Polarity definitions arc particularly important in DHMMR. If
the current in the ground is defined as flowing from south to
north, then a conductor beneath a drill hole with an easterly
azimuth will produce a negative response and a positive response
if above the hole. The opposite will apply for west-facing holes
(Figure 1b).
The phase difference between the transmitted current and the
recorded voltage is also recorded (in milliradians). This is an
induced polarisation (IP) parameter which can be used
qualitatively in an interpretation. but it has not yet been
incorporated into the modelling.
Example A: Weakly conducting lead-zinc
mineralisation
The Potosi open cut is located about 2 km north of the Broken
Hill orebody on the Northern Leases. It had a total resource
approaching I Mt at 9.1 per cent Zn, 2.3 per cent Pb and 28 g/t
Ag with little other sulphide. The mineralisation. mostly
sphalerite and galena with minor chalcopyrite and pyrrhotite,
occurs largely within the Freyers Metasediments (Unit 4.5).

4th International Mining Geology Conference Coolum. Old. 14 - 1 7 May 2000 337
 J BISHOP and R LEWIS
stratigraphically below the Hores Gneiss (Unit 4.7) which hosts
the main Broken Hill orebody (Morland and Leevers, 1998).
I Although Unit 4.7 mineralisation is generally quite conductive,
Unit 4 3 is much less so. Near-mine exploration has focussed on
a north plunging zone of Potosi mineralisation which lies close to
the contact with the overlying Unit 4.6 amphibolite.
Figure 2a shows the profile from a DHEM survey carried out
down DDH 3153 which is located approximately 700 m to the
grid north of the open cut. There are no features of interest,
including from that section where the hole lies within the target
Freyers Metasediment horizon. In contrast, the DHMMR survey
I
(Figure 2b) shows a broad, well-defined low indicating (for this
geometry) a conductor. or conductors, below the hole. Figure 2c
shows the modelled DHMMR conductors in good agreement
with the intersected sulphides. Following this result, DHMMR
became the preferred downhole exploration technique on the
Northern Leases.
I Example B: Detection at a distance
This example also comes from the Potosi mine area. Section 21s.
lies along strike, -3300 m, to the north of example A and has a
similar geological cross-section (Figure 3a). DDH 3230 was
surveyed with DHMMK and some low amplitude but
well-defined responses pointed to a number of below-hole
I conductors. The interpreted conductors from the DHMMR data
~
have been superimposed onto the geological cross-section
(Figure 3a).
A follow up hole, 3458, was targeted on the deepest
interpreted conductor, which is about 145 m from 3230. DDH
3458 intersected two zones of patchy mineralisation: one
I
I
.between 347 m and 3.52 m, and another between 363 m and $71
m. The deeper zone coincides with the target DHMMK
conductor. DDH 34.58 was then itself surveyed with DHMM,R.
The positive response in the east-facing 3458 (Figure 2b)
indicates that the bulk of the mineralisation lies above the hole
and the modelling defined two adjacent zones of mincralisatihn
extending away from, and above, 34.58 (Figure 3c). I
DDH 3466 was drilled to test for the conductors interpreted,to
lie above 3458. This hole intersected 3.6 m at 12.3 per cent Ph,
12.3 per cent Zn and 4.5 per cent Fe from 319 m. plus 6.0 in, at
4.0 per cent Pb, 7.3 per cent Zn and 4.5 per cent Fe from 341 ‘m.
Thus the initial DHMMR survey detected economic griide
lead-zinc mineralisation at a distance of more than 100 m from
the drill hole.
Example C: Sulphide-hosted gold I
DHMMR has been used to explore for extensions to shear-hosted
mineralisation at the Wiluna Gold Mine i n the Yilgarn Craton,
WA. Most of the gold is refractory within disseminated sulphi4es
averaging five per cent pyrite with some arsenopyrite. The ore
conductivity is low but at least ten times greater than the host
rock. Thus IIHMMR was chosen ‘as the only method likely to be
able to find weakly conductive ore at depths of 1 km or m o k .
below a conductive overburden, and at significant distances frnm
the drill holes’ (Meyers et al, 2000).
The electrodes for the energising dipole were located in two
drill holes which intersected the host shear at a downhole de@h
of 925 m for the southern electrode and 870 m for the northern
electrode. Drill hole WD494 was surveyed over the interval
200 m to IS20 m using a three component probe. The results

1000 0.5rns

100
1.6rns
10
z
W 3.1ms
I 1 4.9rns
n 0
down hole depth (m)

h
loo r
I
I

s limit of
1990 survey
a,
fn -- Model data
- Field data I
-100 1 I I I
ry 0 100 200 300 400
2 down hole depth (m)
2
I
n interpreted /
4
100
conductors ‘I DHMMR interpretation
intersected mineralisation
!

FIG 2 -Potosi mine, section 31.75s. (a) DHEM results from DDH 3 153 showing no response from the underlying sulphides intersected in 3 147 and 3284.
(b) DHMMR profile from 3153X showing a clear response from the underlying mineralisation. (c) Geological cross-section of section line 31.7% of the
Broken Hill Northern Leases with the interpreted conductors from the DHMMR survey of 31S3X.DDH 3147 intersected -9 m @ 0.9 per cent Pb + 10.2
per cent Zn and follow up hole 3284 intersected -1 m @ 2.0 per cent Pb + 4.8 per cent Zn (after Bishop et ul, 1997). !

338 Coolurn. Qld. 14 - 17 May 2000 4th International Mining Geology Conference
 FINIIING MORE ORE. FURTHER FROM THE DRILL HOLE. WITH DHMMR
Fici 3~ - Potosi mine. section 21 S. Interpreted geological cross-section for
section line 21s of the Broken Hill Nonhem Leases when only holes
3328 and 3230 had been drilled, with modelled conductors from the
IIHMMR survey of these two holes. The deepest conductor, at
-9920RL. was targeted for follow up drilling with 3458.
---- B axial
- data
pTlA
271
yA
pT/A
0 A nickel sulphide prospect on the Perseverance Fault in the
depth (m) 430
Flci 311 - Potosi mine, section 21s. Field and model DHMMR B field data
for 3230 and 3458. The results from 3458 suggest that the bulk of the
mineralisation lies above this hole.
show no obvious response from the upper gold horizon, but there
arc low amplitude, high frequency responses in all three
components associated with the lower horizon which averages
around two per cent total sulphide (Figure 4a). Of more interest
however, arc the larger and broader responses which suggest the
presence of a significant conductor (mineralisation?) located
off-hole.
The axial data was modelled using a 2D program (Lewis,
1998) and the cross-component data was qualitatively
interpreted. The modelling produced a number of small bodies,
mostly close t o the drill hole (Figure 4b). One exception was an
above-hole body at a down hole depth of -1000 m which was
4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000
Fic; 3c - Potosi mine, section 21 S. Revised geological cross-section
showing 3230.3458 and 3466 with superimposed model conductors
from the DHMMK surveys of 3230 and 3458. (The responses from
these model conductors are compared with the field data in Figure 3b.)
DDH 3466 was targeted on the off-hole conductors above 3458 and i t
intersected 3.6 mat 12.3 per cent Pb, 12.3 per cent Zn and
4.5 per cent R from 319 m. plus 6.0 m at 4.0 per cent Pb.
7.3 per Cent Zn and per cent Fe from 341 m.
required to produce the broad low in the axial profile (#2 in
Figure 4b). This body. which varies in distance from 120 m to
220 m from the hole, was interpreted to be near-vertical with a
southerly plunge. Superimposed on the geological cross-section,
it lies within the shear zone and part of this conductor has been
already tested by DDH WD424, which intersected approximately
20 m (true width) averaging nearly l.g/t Au (Figure 4c).
Thus the DHMMR has identified a previously defined zone of
mineralisation and confirmed the southerly plunge. at distances
of 100 m to 200 m from the drill hole.
Example D: Shape dependent responses
Agnew-Wiluna greenstone belt, WA, has been drilled in some
detail and DHEM was successfully used to help define the extent
of the massive sulphides. As well as the massive sulphides, some
stringer, or matrix, sulphides were known to occur above the
massive sulphides. close to a shallowly dipping thrust zone
which had emplaced felsic volcanics over the ultramafics. Figure
Sa presents the axial profile DHEM data for DDH SO9 and
Figure Sb shows the good agreement between the interpreted
models and the geological cross-section,
A DHMMR survey was trialled to see if i t could add to the
geological picture. A survey down I)I)H SO9 gave little response
from the underlying massive sulphides, but a broad positive
response centred at -135 m down the hole, suggested the
presence of a significant conductor above the hole (Figure Sc).
This was tested by DDH 552 which intersected 14 m of 2.9 per
cent Ni. This mineralisation can be seen (in retrospcct) as the
source of the small, rapidly decaying response at -140 m in the
DHEM profile in Figure Sa. This response only occurred in loops
offset from the mineralisation (Bishop et al, 2000).
339
 J BISHOP and R LEWIS

I
!

Sulphide
i
4

200 500 Depth (m) loo0 1500

F[(;4 A - Wiluna gold mine Gold assays, sulphide percentages, plus DHMMR profiles for WD494 (note the different scales for the three components).
The upper gold horizon has no obvious associated DHMMR response, but the lower horizon shows a low amplitude, high frequency ripple. The main
klMR response, at -1050 m, is produced by an off-hole conductor.

h 00
I

I500 rn RL

300 m

Ftc; 4 s - Wiluna gold mine. 2D Modelling of the axial data from WD494. FIG4c - Wiluna gold mine. Body no 2 from Figure 4b superimposeL
Numerous small bodies, mostly close to the hole were required to match onto the geological cross-section. The body lies within the host shear and
the observed data. One important exception is body no. 2, which has a has already bcen tested by DDH WD424, which intersected 42.5 m with
depth extent of -200m and lies between 120 m and 220 m from the hole. an average grade of 0.83dt gold.

340 Coolurn, Qld. 14 - 17 May 2000 4th lntemational Mining Geology Conference
I
 ~~

FINDING MORE ORE. FURTHER FROM T H E DRILL HOLE. WITH DHMMR

200
T 552 I
h 100-
E
2 0:.
300

-
k -100-
m
depth (m)

-200-
- model
..............data
200/ 509

-observed data
r' modelled data
G
-2001

509 509 552

1 overburden

400s
140m x 40m

270m x 11Om/
50 m 270m x2600s
1lorn I 50 m

FK;S - WA nickel prospcct. (a) Model and observed DHEM data for DDIISOO. (b) DHEM conductors superimposed on the geological cross-section.
( c ) DHMMR data for DDHSO9 and the follow up hole 5.52. The positive response at -135 rn in the SO9 profile indicates a significant above-hole
conductor. This was tested by S.52 which intersected 14 111of 2.9 per cent Ni. DHMMR surveying of SS2 showed sharp. near-symmetrical (either side
of zero) responses which suggest that SS2 ha.. intersected close to the centre of the source. (d) Kevised geological cross-section for DDHs SO9 and 5 5 2
showing the interpreted DHEM and DHMMK conductors.

4th lnternatlonal Mining Geology Conference Coolum. Old, 14 - 17 May 2000 34 1

J BISHOP and R LEWIS

Figure Sd shows the revised geological cross-section with the

DHEM and DHMMR interpreted conductors superimposed.
Thus the DHEM has responded well to the sheet-like massive
sulphidcs but not to the overlying cigar-shaped stringer
sulphides. On the other hand, the DHMMK has responded to the
stringer sulphides, but not to the massive sulphides.
These two sets of data show that EM is applicable for finding
conductors of large areal extent, but that for bodies with large
cross-sectional area relative to their long section DHMMR is
probably a more appropriate method. Thus both techniques were
required here to detect the two different styles of mineralisation.

Example E: Unambiguous location of mineralisation

Massive Ni-Cu sulphides at the Nkomati mine in Mpumalanga,
South Africa occur within the trough-shaped Uitkomst peridotde and
ultramaficlmafic complex. These are overlain by a number of diabase
other, more disseminated. sulphide layers, some of which contain 1200
significant amounts of pyrrhotite (Woolfe, 1996). Thus the target
sulphides are shielded by zones of conductive and magnetic
mineralisation. Figure 6a shows a plan view of the massive
sulphide body within the complex and the location of four drill
holes used for the downhole geophysical testwork. Figure 6b massive I

presents a simplified cross-section of the complex with the chromitite

massive sulphides at the base of the complex and the same four -
-d-
chromititic ~

vertical drill holes.

A large-scale drilling program was undertaken to look for \
further occurrences of massive sulphide and various downhole -r \

geophysical techniques were employed to help find further ore,

which was expected to occur at around the same reduced level
(RL) as the defined resources. One problem, for all techniques, is
the presence of resolving the deeper massive sulphides from the
overlying disseminated sulphides which are generally thicker and
still quite conductive and magnetic. All holes were vertical and
this meant that for the DHEM surveys, both frequency and time
domain, only axial data could be usefully recorded and thus the
Rc; 613- Nkomati nickel mine. Simplified cross-section showing the
interpretations had an axial symmetry; ie conductors could be massive sulphide orebody at the base of the complex. together with the
interpreted with respect to depth and dip, but not azimuth (Nyoni
four vertical dnll holes used for the downhole geophysics
and Bishop, 2000)

FIG6n - Nkomati nickel mine. Plan view showing the location of the massive sulphide body within the maficlultramafic complex and
the fence of four holes used for the downhole geophysics.

342 Coolum. Qld, 14 17 May 2000

~
4th lntemational Mining Geology Conference
 FINDING MORE ORE. FURTHER FROM THE DRILL HOLE, WITH DHMMR

I I

.. Sh160 50.00

0.00
lS00 1400 1300 1mO 1100 1OW

-50.00

-100.00

-150.00

-200.00

100.00

50.00
Sh 68
,- 0.00 ?
1500 1400 1300 Q
-50.00
0

-100.00

-15cJ.00

field data -200.00

-250.00
===== model data
150.00

10000

50.00

0.00 p
D J !
cp
40.00

-1mm

Flci 6cr - Ohserved and model H field data from the along strike dipole. E3. The broad positive response in Sh74 and the sharp negative one in Sh68.
at -960 ni RL. are due to the same conductor. which is locat~dbetween the two holes at the massive sulphide level. The slightly shallower negative
response in Sh160 plus the positive in Sh157 we due to separate sources in the overlying sulphide horizon.

4th International Mining Geology Conference Coolum. Old. 14 - 17 May 2000 343
 J BISHOP and R LEWIS

350.00

-400.m

-2QO.00
500 1400 1300 1 200 1100 10W

-250.00

Sh 74
300.00

350.00

4w.00

-450.00

506.w
- field data
-5sO.W -- = = model data

800.00

I
FIG6c11- The deep negative-going responses from both holes me at massive sulphide level and are due to conductors located to the north-west of the ~

drill holes.

DHMMR surveys were conducted with a dipole located both
along the complex (E3 in Figure 6a) and across the complex (N2
in Figure 6a). It was hoped the latter would better distinguish the
(presumably) more conductive. short strike length massive
sulphides from the overlying long strike length disseminated
sulphides. The results were certainly different (Figure 6c) and
complementary rather than comparative.
The interpretations of both sets of data were unambiguous and
contrary to expectation, with both showing good conductors, at
the target depth, on the opposite side of the drill holes to the
known massive sulphides (Figure 6d). Thus the DHMMK
suggests that there are better zones of more conductive sulphides
lying away from the known ore, on the northwestern side of the
drill holes. These are yet to be confirmed by drilling which will
take place from underground.
CONCLUSIONS
DHMMR is another tool for finding ore off-hole. It is capable of
detecting sulphides too resistive for DHEM and of seeing further
from the hole than DHEM (and much further than IP). It will not
define the extent of thin tabular bodies, but rather will locate the
most conductive zones of such bodies. Thus the method may
replace DHEM where the sulphides are only weakly conductive
or act as a complementary technique where both tabular bodies
and elongate lenses occur. !

344 Coolurn. Old. 14 - 17 May 2000 4th International Mining Geology Conference

!
 FINDING MORE ORE, FURTHER FROM THE DRILL HOLE. WIT11 DHMMR

I+; 61)- Nkomati nickel mine. A plan view of the massive sulphide body with the interpreted 'massive sulphide level' DHMMR conductors. The
DHMMR has not defined the extent of the known mineralisation (which was confirmed by DHEM), but it does suggest the presence of further
mineralisation to the west and north of the presently defined massive sulphide houndary

ACKNOWLEDGEMENTS
Data presented in this papcr was published with the kind
permission of Anglovaal Minerals, Pasrninco Mining Broken
Hill, WMC Kesources and Wiluna Gold Mines. Pongratz
Publications produced the figures.
REFERENCES
Bishop. J K. Hatch. M, Asten. M, Carroll. N and Maclnnes, S, 1997.
Finding sphalerite at Broken Hill with drill hole magnetometric
resistivity. Explorcliiofi Cmphysics, 28:6- IO.
Bishop. J K, Lewis. R J G and Stolz. E. 2000. Horses for (conductive)
courses: [)HEM and I)HMMR, fiPlorution
31 : 192- 199.
Lewis, K J G. 1998. The art o f DHMMR. AGR Ply Ltd publication.
Meycrs, J, Coopcr. M. Bishop, J R and Hatch. M, 2000. Downhole
magnetometric resistivity surveying for refractory gold ore at Wiluna
gold mine, Western Australia. Presented at the ASEG conference,
Perth, WA.
Morlmd, K and Leevers, P R. 1998. Potosi zinc-lead-silver deposit.
Broken Hill in Geology of Ausrruliun trnd Puputr New Guinetrn
Minerul Deposits (Etls: D A Berkman and D H Mackcnzie). pp
6 15-618, (The Australasian Institute of Mining and Metallurgy:
Melbourne).
Nyoni. M m d Bishop, J K. 2000. Geophysical Surveys at the Nkomatl
Mine, Mpumalanga, South Africa. Prescnted at the ASEG
conference, Perth, WA (Explorution Geophy.sics. in press).
Woolfe, J A S, 1996, The Nkomati Joint Venture - a nickel mine in the
making, Geological Society of South Africu Geohulletin, 393-7.

4th International Mining Geology Conference Coolum. Qld, 14 - 17 May 2000 345
 I

!
346 Coolum. Old. 14 - 17 May 2000 41h International Mmng Geology Conference
Nuclear Borehole Logging Techniques Developed by CSlRO
Exploration and Mining for the Metalliferous Mining Industry
M Borsaru’ and J Charbucinski’
ABSTRACT
Commonwealth Scientific and Industrial Research Organisation
(CSIRO). Exploration and Mining, has developed nuclear spectrometric
techniques for borehole logging. The paper reviews the latest
developments of this technology for the metalliferous mining industries:
The SIKOLOG logging system developed by CSlRO Exploration and
Mining has been commercialised and is available to the mining industry.
INTRODUCTION
Geophysical techniques arc well established in the resource
industries like oil, gas, uranium, coal and minerals. Nuclear
borehole logging, which represents a subset of this group, has
been widely used in the oil, gas, uranium and coal industries for
a long time. Nuclear borehole logging tools encompass three
types: neutron source and gamma-ray detector. gamma-ray
source and gamma-ray detector and finally, gamma-ray detector
with no source. Owing to the deep penetration of neutrons and
gamma rays, nuclear techniques are suitable for borehole logging
applications and they arc making inroads in the metalliferous
mining industry.
Many holes drilled in the coal and metalliferous mining
industries arc cored and a chemical analysis performed. This
analysis typically is the only source of information from a
borehole. However, this does not make nuclear borehole logging
redundant. The benefits that can be derived from nuclear logging
are:
I. it samples a much larger volume of the material
surrounding the borehole than the core sample and
therefore provides better sampling statistics especially in
heterogeneous deposits;
2. the results arc instantaneous; and
3. the cost of drilling open holes is cheaper than the cost of
cored holes.
Considering that the full information provided by the
laboratory analysis is not always needed and that in some
mineral deposits the core cannot be fully recovered, nuclear
logging and laboratory analysis of the core arc complementary.
CSIRO Exploration and Mining has developed the
spectrometric nuclear logging system, SIKOLOG, based on
natural-gamma, gamma-gamma and neutron-gamma techniques.
In this system the whole gamma ray spectrum is recorded for
each preset logging interval. By recording and analysing the
whole gamma-ray energy spectrum from a spectrometric
measurement one can extract morc information from the logging
data. A dedicated software package for spectrometric d a a
analysis and interpretation has also been developed. The data
interpretation and the sourceldetector configuration are usually
specific to the type of application, that is, tuned for each specific
application.
INSTRUMENTATION
Gain stabilisation is an essential part of a spectrometric system.
SIROLOG has been upgraded to a fully digital system. Pulses
produced by the gamma-ray detector are processed by a
I. CSlRO Exploration and Mining, PO Box 883, Kenmore Qld 4069
4th International Mining Geology Conference Coolum. Old, 14 - 17 May1 2000
microprocessor incorporated in the probe and transmitted to the
uphole computer. The digital transmission of the signal is noise
proof and is not susceptible to attenuation in the cable. The
whole system consists of the probe, winch and a laptop
computer. When low activity sources arc used and a source
transporter is not required, the system is portable and does not
require a dedicated logging vehicle. This makes SIROLOG
suitable for logging in areas where the only access is by
helicopter.
The standard logging probe has a diameter of 60 mm and can
accommodate a scintillation detector of 37 mm diameter. The
length of the probe is about 2 m. When logging large diameter
boreholes it is advantageous to use larger volume detectors,
which arc more efficient for gamma ray detection. Larger
diameter probes arc constructed for these applications.
Scintillation detectors are used in the SIKOLOG system. The
most common type used in the gamma-gamma tool is Nal(TI).
while BGO (bismuth germanate) is the preferred scintillator for
natural-gamma and neutron-gamma logging.
APPLICATIONS
Iron ore mining industry
The three nuclear borehole logging techniques, prompt gamma
neutron activation, gamma-gamma and natural gamma have
found applications in the iron ore mining industry.
One of the features of nuclear logging is that it samples a
much larger volume than coring and subsequent chemical
analysis. The following example shows the weight of ore
sampled by the conventional sampling and nuclear logging for a
typical production bench. The bench consists of a 10 m regular
grid of holes to a depth of 20 m intersecting ore of density
2.8 Urn3. Consequently, each hole represents an ore-block
weighing 5600 1. In conventional sampling, a sample of around
4 kg taken manually from the cone of drill cuttings represents the
5600 t ore-block, giving a sample to ore-block ratio of
approximately 1 : l 400 000. Both gamma-gamma and prompt
gamma neutron activation techniques have been used
successfully for borehole logging in the iron ore mining industry.
The sampling radius of gamma-gamma and neutron-gamma are
IS0 mm and 300 mm respectively. For a 300 mm diameter blast
hole, the masses of ore sampled by the gamma-gamma and
neutron-gamma tools are approximately 12 and 3 2 t respectively.
Consequently, the sample to ore-block ratios for these two
techniques are about 1:467 and 1:175 which is much more
favourable than for the conventional method.
Prompt gamma neutron activation logging has been used
successfully for the determination of iron grade and silica
content in iron ore (Eisler et al, 1977; Charbucinski, 1991;
Charbucinski, 1993). Neutron-gamma is a ‘specific’ method; its
response is characteristic to elemental composition of the ore.
The neutron-gamma reactions produced by thermal neutrons
produce gamma-rays specific to the chemical elements found in
the ore. Both iron and silicon have relatively large
neutron-capture cross-sections and produce easily identifiable
gamma-rays used to determine their concentration in the ore.
Figure 1 shows a neutron gamma spectrum recorded by the
prompt gamma neutron activation probe with a BGO detector in
347
I M BORSARU and 1 CHAKBUCINSKI

Prompt Gamma Neutron Activation Analysis spectrum recorded in

iron ore
100
I Hydrogen,
90

80

-
v)
n
70

0 60
Y

a
+I 50
?
+I
C 40
=I
0
30

20

IO

0
1 2 3 4 5 6 7 8 9

Energy ( M e V )

Flc; I - Spectrum collected with the prompt gamma neutron activation probe in iron ore.

an iron ore deposit. The iron and silica peaks are evident in the
spectrum. The accuracy for the determination of iron in 280 mm
blastholes was 0 3 4 per cent Fe and lor the determination of
average silica content was 0.65 per cent Si per blasthole.
The spectrometric gamma-gamma technique enabled the
simultaneous measurement of iron grade, density and borehole
diameter on a stratigraphic basis in wide (310 and 380 mm) dry
blast holes in iron ore deposits (Eider et al, 1987). The primary
gamma-ray source used was @ko. The accuracy for iron
determination in I .S m split intervals was 1.6 per cent Fe in ore
hearing at least SS per cent Fe. For ore of widcr range in grade.
the accuracy was 1.9 per cent Fe, where ore grades ranged from
35 to 69 per cent Fe, whilst the accuracy was three per cent Fe
where the minimum grade was nine per cent Fe. Total blast hole
grade, over an average length of IS m, was determined with the
accuracy ranging from 0.9 to 1.3 per cent Fe, depending on the
quality and location of the ore. The accuracy for density
measurements was 0.18 and 0.30 Um' in blast holes of 380 and
3 I O mm diameter respectively. The accuracies for the hole
diameter determinations were 10 and S mm for hole diameter
ranging from 310 to 410 mm and from 390 to S O 0 mm
respectively.
mm diameter. In spite of the difficulties in sampling fpr
calibration, both of the quantitative techniques performed
accurately given the wide range of ore grades and ore typcs
encountered in the deposits where the field trials took place. The
root-mean-square (rms) deviation between manganese grade
based on regression analysis of logging data and laboratory
assays was approximately 3 4 per cent Mn for ores ranging i n
grade from ten per cent to 5 0 per cent Mn for both techniques.
However, the prompt gamma neutron activation was less
dependent than the neutron activation on chemical differences
between the mineraliscd ores at the different deposits.
Nickel logging
I
Preliminary investigation on nickel logging by CSlRO showyd
that spectrometric logging could be beneficial to the nickel
mining industry. Prompt gamma neutron activation was found to
be the only quantitative technique to this application. On the
other hand, although it was not possible to interpret the
spectrometric gamma-gamma probe quantitatively, because the
iron probe response is similar to the nickel response, the lois
obtained using this probe delineated the mincralised zones
intersected by the boreholes.
I

Natural-gamma is used for delineating the iron orebody based

on the big difference in natural gamma radiation between the
iron ore (low in natural gamma radiation) and the shaly rock. It
can also provide a means for determining alumina contamination
of iron ore based on the correlation between alumina and the
kaolinitic material of the ore matrix (Charbucinski et al. 1991)
Manganese
Both prompt neutron gamma activation and neutron activation
techniques have been used for the determination of the
manganese content of manganese ore (Aylmer er al, 1984). '"Cf
neutron sources were used for both techniques. The field trials
were carried out in dry, shallow (IS m deep) boreholes of IS0
RECENT DEVELOPMENTS USING ULTRA-LOW
RADIATION INTENSITY GAMMA-RAY SOURCES
Although nuclear techniques are widely used in the mining
industry, some mines are still reluctant to use them because of
the extra care required when working with radioactive sources.
Work has been carried out over the last years to develqp
environmentally friendly techniques for in situ analysis using
ultra-low radiation intensity gamma-ray sources. Equipment fnr
in situ analysis using low activity sources significantly simplifies
safety procedures and reduces to a minimum the source radialinn
risk. Logging systems using very low activity sources are much
more likely to be accepted by the mining industry.

I
348 Coolum. Old, 14 - 17 May 2000 4th International Mining Geology Conference
 NUCLEAR BOREHOLE LOGGING TECHNIQUES

Two soiirce/detector configurations have been developed

(Charhucinski el nl. 1997). One configuration, used in the LOW
ACTIVITY TOOL. comprises a 1.8 MBq '"Cs gamma-ray
source placed along the axial centreline of the detector. The other Pz Ratio Geology
configuration, used in the ZERO PROBE. comprises three 0.36 2
MHq '"Cs gamma-ray sources placcd circumferentially around a
cylindrical irodlead shield.

Iron ore
The Low Activity Tool was tested in an iron ore deposit (Rorsaru
cf d , 1995). The probe proved suitable for delineation of the
orchody and also for predicting its grade. The iron ore region can
he delineated from the count rates recorded in different energy
windows of the backscattered spectrum, o r the ratio of counts
recorded in two windows selected in the high and low energy
regions of the spectrum (P, ratio). The low energy region of the
spectrum is sensitive to the average atomic number i& of the
matrix and it can therefore be used to delineate the iron ore (high
z,,)from the host rock (low Z.,J Figure 2 shows the delineation
of a shale band, approximately 1 m thick, intersected by the
borehole in an iron ore deposit.

Pb-Zn ores Iron Orc

Both single source and three source configurations were tested

for orebody delineation and grade control of Pb-Zn ore
(Charbucinski et A/. 1997; Almasoumi e1 a / , 1998).
Lead grade is determined from the 80 keV K X-ray peak
excited by the multiscattered gamma-rays. The probes were field
tested in two cored holes in a Zn ore deposit, reamed later to a
diameter of 142 mm. The holes were water-filled. Figure 3 shows
spectra collected in a borehole over the intervals 93.95 - 95.45
and 106 - 107.2 m. with corresponding Pb assays of six per cent
and 0.04 per cent Ph respectively. A strong Pb peak is visible at
80 keV energy for the interval containing high lead. The lead
peak is absent in the other spectrum. The rms deviation given by 2 - The delineation of a shale band in an iron ore deposit with the
the regression equation was 0.3 per cent Pb for both probes and Low Activity Tool.
the standard deviation of the population was 1.7 pcr cent Pb.

300

250

200

150
I

100

50

0
0 50 100 150 200 250 300 350

Energy (keV)

Fic; 3 - Spectra collected with the Low Activity Tool over two intervals with Pb assays of six per cent and 0.04per cent.

4th International Mining Geology Conlerence Coolurn. Qld. 14 - 17 May 2000 349

M HORSARU and J CHARBUCINSKI
T h e gamma-gamma probe is not able to measure the
~
concentration of zinc directly. T h e probe’s response is related to
the overall contributions given by the major components with
high atomic number which are present in the Pb-Zn ore, e g Pb.
Zn, Fe and Mn. Because P b concentration can be measured
directly, the determination of Z n is possible if the Fe and Mn
concentrations in the o r e are constant, or can be estimated in a
different way. T h e concentrations of Fe and Mn were estimated
in this work from statistical information obtained from a
geological database. T h e rms deviation for the determination of
per cent Zn was 2.4 per cent Z n and the correlation coefficient
was 0.85. T h e standard deviation of the population of 72 samples
used was 4.55 per cent Zn.
CONCLUSIONS
Nuclear kchniques are more widely used in the oil industry than
in the mineral industry. O n e explanation to this fact is that
nuclear logging provide vital information for the oil industry
which can not be obtained by any other means. In the mineral
mining industry, core recovery and subsequent chemical analysis
can provide all the information required, although at a higher
cost. Also, the cost of logging in the oil industry constitutes only
a small fraction of the cost of drilling deep wells. This is not the
case when drilling much shallower, cheaper holes common in the
mineral industry. As a percentage of the cost of drilling, logging
costs are much higher for the mineral industry.
There are important benefits from using nuclear logging:
I. i t samples a much larger volume of rock than the core
samples;
2. it provides results in real time; and
3. i t saves money by providing information from open holes,
which are cheaper to drill than the cored holes.
T h e spectrometric SIROLOG system for in situ analysis
developed by CSIRO has proved itself in the Australian mining
industry. T h e new fully digitised, portable systems using
ultra-low radiation intensity gamma-ray sources will make the
system even more competitive.
350 Coolurn. Old. 14 - 17 May 2000
I
I
I
It is very likely that nuclear techniques will contribute mukh
more to the mineral industry in the future. especially pt
development and mine production stages.
REFERENCES !
Almasoumi A. Borsaru, M and Chahucinski, J, 1998. Determination ,of
the lead concentration of Pb-Zn ores in laboratory boreholes using
gamma-gamma techniques with very low activity sources. Applied
Rudiurion und I.toropes, 49: 125- 13 I . I
Aylmer. J A, Charbucinski. J. Eisler, P L and Youl. S E 1984.
Quantitative borehole logging of manganese ore by pronipt
neutron-gamma and neutron activation methods. SP\VU 25th
Annucil Iagging Syrnpii.~ium,p D, (New Orleans).
Borsaru, M. Ceravolo. C and Tchen. T, 1995. The application of the ldw
activity borehole logging tool to the iron ore mining industry.
Nuclecir Geophy.ricc.,95.5-62.
Charbucinski. J . 1991. 111 situ assaying of iron ore in blast holes for iron
ore and silica content, in Priiceedingz IAEA CRP Mecrin,s on
Nucleur Techniques i n b:xpliirutioii und Exploitution of Nururul
Resources, (Dehrecen).
Chahucinski. J. Millitz. P and Ceravolo. C. 1991. in siru assaying of iron
ore in blast holes for alumina content, CSIRO. Division of
Geomechanics Internal Report (Newseries) No h l
Charbucinski. J, 1993. Comparison of Spcctronietric neutron-gamma a i d
gamma-gamma techniques for in situ assaying for iron grade in larke
diameter production holes, Nucletir Geophyrics, 7: 133- 14 1.
Charbucinski. 1. Borsaru, M and Gladwin, M, 1997. Ultra-low radiation
intensity spectrometric probe for orebody delineation and grade
control of Pb-Zn ore. in ProcieedinRs I$ Explorurion 97: the fiiurth
Deceniul lnrernurionul Conference ori Minerd Explorutiori.
September 1997, pp 63 1-638. Toronto. Canada. I
Eisler. P L, Huppen. P, Mathew. P J. Wylie, A W and Youl: S F. 1977.
Use of neutron capture gamma radiation for determining grade of
iron ore in blast holes and exploration holes, in Proceedinxs of IAFA
Symposiom on Nucleur Techniyues untf Minerd Resources. 21 5 p,
(Vienna).
Eisler. P L, Charbucinski, J, Borsaru, M and Indrans, A P, 1987.
Spectrometric gamma-gamma borehole methods for iron ore mining.
in Proceedings 2nd lnternutionul Symposium on Rorrhole
Geophysic..s for Mineruls. Georechnicul upid Griiundw:ifer
Appk:utions. 189 p. (Golden, Colorado).
4th International Mining Geology Conference
Publications of
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1 Dctrital llcavy Minerals in Natural Accuintilates Gcorgc Btrket i962
2. Rcscarch i n Chemical and I<xtractionMetallurgy Ed: J 7'Woodcock, i967
A E Jenkins
utidG M CVillis
3. Ed: M Krrdnionovich i968
wid J T Woodcock
4. I3xmmic Cieology of Sew Zealand Ed: C; .J Wil/iums 1974
5. Economic Geology of Australia and Papua New Guinea - I Metals Ed: C L Knight 197.5
6 Econoinic Gcology o l Australia and I'aptiii New Guinea - 2 Coal Ed: D M l'I.~ve.s 1975
trnd D K i q
7. Economic Geology of Australia and Papua Ncw Guinca - 3 Petroleuin Ed: R R Leslie 1976
I I ,I E i w i . v
trnd C I. Krirght
8. Economic Cicology of Australia and Papna New Guinea - Ed: C'I, Knight 1976
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I " Edition Utld w Kyull 10x2
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IO Mining and Metallurgical Practices in Australasia Ed: J T Woodcock IYKO
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11. Victoria's Brown Coal - A Huge Fortune in Chancery Ed: .I T Woodcock
(the Sir Willis Connolly Meinorial Volume)
12. Australasian Coal Mining Practice Ed: C H Mnrtin 1986
I I' Edition Ed: C H Murlin I Y 93
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13. Mineral Deposits of New Zealand Ed: Dr D Keur 1989
14. Geology of the Mineral Deposits of Australia and Papua New Guinea Ed: F E Hughes 1990
15. Tlie Rocks Spcak H King 1989
16. Hidden Gold - The Central Norscinan Story J D Cumpbell 1990
17. Geological Aspccts o f the Discovery of K R Glmvon 1990
Soinc Iinportant Mineral Deposits in Australia trnd .I
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18. Down IJnder - Mineral I-lcritage in Australasia Sir Arvi I'urbo 1992
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20. Cost Estimation Handbook for the Ed: M Nocrkes I 993
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21. History o f Coal Mining in Australia Ed: A .J Hurgrnves. 1yy3
(the Con Martin Memorial Volume) R J Kininmonth,
C H Murtin
and S M C Saywell
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4/74 * Annual Confercncc! Southern and Central Quccnsland
1975 1/75 s9 * People and thc Mining Industry - The Futurc, Broken IIill I

2/75 s 10 * Occupational Safcty i n Mines, Southern Quccnsland

I

3/75 sII * Australian Black Coal, lllawarra

4/75 * Annual Confercncc. South Australia
1976 1/76 SI3 * Landscaping and Land Use Planning as Related to Mining Operations. Adelaide
2/76 * Design and Construction of Tunncls and Shafts. Mclbourne - 2”’ Australian I
Tunnclling Confcrcncc
3/76 S 14 * Thick Scam Mining by Undcrground Mcthods, Ccntral Quecnsland
4/76 S 15 * Sampling Practices in the Mineral Industrics. Melbournc
5/76 * AnnualConfcrcncc, lllawara
1977 1 I77 S 16 * Apcotn ‘77, Brtsbanc
I 2/77 s 18 * Coal Boreholc Evaluation. Southern Quccnsland
3/77 S 17 * Undcrground Operators’ Confcrcncc. Broken Hill
4/77 * Annual Conferencc, Hobart
1978 1 I78 S 19 * Mill Opcrators’ Confcrcnce, North West Quccnsland
!
I

2/78 s20 * Rock Breaking Equipment and Tcchniqucs, Melbourne !

I

3/78 * International Resource Managcmcnt, Canberra

4/78 * Annual Confercncc, Townsvillc
1979 I 179 s 21 * Utilisation of Stcclplant Slags, lllawarra
2/70 s22 * Estimation and Staterncnt of Mineral Rescrvcs. Sydney
3/79 * Annual Confcrcncc, Perth
I
1980 I 180 * Annual Confcrcncc, New Zcaland
2/80 S23 * AustraliaIJapan Extractivc Mctallurgy Symposium, Sydney
3/80 SI24 * Occurrcncc, Prcdiction and Control of Outbursts in Coal Mines, Southcm I
,
Qucensland
4/80 S25 * Management in thc Mining Industry, Mclbourne

Copies of all books currently in print can be obtained from The Institute office
Tel(O3) 9662 3 166 or Fax (03) 9662 3662
I
* = Out o f print
Thc ‘S’ numbers in thc third column rcfcr IO an older identifying number for Symposia. the numbers prccccding thc ’S’ numbcr sigillfy thc ncw
publication ordcring number. I
!
1981 118 I S26 * International Blast Furnace [Hearth and Raceway Symposium. Newcastle
21x I * Fourth Australian Tunnelling Conference
318 I S27 * Ignitions. Explosions and Fires. Wollongong
418 I * Annual Conference, Sydney
518 I s2x * Strip Mining 45 Metres and Beyond, Central Queensland
I 982 1/82 S29 * Off Highway l’nick Haulage Conference, Ncwman
2/82 S30 * Mill Operators’ Conference, North West Queensland
3/82 S3 I * underground Operators’ Conference, West Coast Tasmania
4/82 * Annual Conference, Mclbournc
SIX2 s32 * Carbon-In-Pulp Technology for the Extraction of Gold, Perth and Kalgoorlic,
(Reprinted 1988)
6/82 s33 * Seam Gas Drainage with Particular Reference to the Working Seam. Wollongong
1983 1/83 s34 * Coinputers in Mining, Southern Qucensland
2/83 * Annual Conference. Broken Hill
31x3 s35 * Project Dcvclopment Symposium, Sydney
4/83 s.37 * Ventilation of Coal Mines, Wollongong
5/83 s40 * Principles of Mineral Flotation (The Wark Symposium), Adelaide
1984 I 184 S36 * Metallurgy Symposium, Melbourne
21x4 S38 * Coal and Mineral Sizing, Wollongong
3/84 * Annual Conference, Darwin
4184 S3Y Gold Mining, Metallurgy and Geology, Kalgoorhe
1985 1/85 S4 1 * Smelting and Refining Operators’ Symposium, North Qucensland
2/85 S42 * Underground Operators’ Conference, Kalgoork
3/85 * Annual Conference, Brisbane
41x5 s43 * Scientific and Technological Developments in Extractive Metallurgy (G K
Williams Mcinorial Volume), Melbourne
I 986 1I86 * 13th Congress The Council of Mining and Metallurgical Institutions, Singapore, 6
Voluincs
2/86 s44 * Selective, Open Pit Gold Mining Seminar, Pcith
3/86 s45 * Ground Movement and Control Related to Coal Mining, Wollongong
4/86 s40 * Australia: A World Source of Illmcnite, Rutile, Monazite and Zircon Conference,
Pcrth
5/86 s47 * Second Project Development Symposium, Sydncy
6/86 S48 * Large Open Pit Mining Conference, Ncwman
7186 s49 * Education and Research for the Mincral Industry for the Future, Melbourne
8/86 * The AuslMM IO Year Index
1987 1/87 * VI Australian Tunnelling Conference: Bore or Blast, Melbourne
2/87 s50 * Risk and Survival Seminar, Canberra
3/87 * Annual Conference, Newcastle: Coal Power ‘87
4/87 S5 1 * Research and Development in Extractive Metallurgy, Adelaidc
5/87 * Leslie Bradford Golden Jubilee Oration
6/87 S52 * Mining and Environment: A Professional Approach, Brisbane
7/87 * Pacrim ‘87, Gold Coast, Queensland
8/87 s53 * Dense Medium Operators’ Conference, Brishane

Copies of all books currently in print can be obtained from The Institute office
Tel(O3) 9662 3 166 or Fax (03) 9662 3662

* = Out of print
Thc ‘S’ numbcrs in thc third column rcfcr IO an oldcr idcntifying numbcr for Symposia. thc numhcrs prccccding thc ‘S’ numbcr signify thc ncw
puhlicarion ordcring numbcr.
 I
9/87 s54 Eqtiipincnt i n the Minerals Industry: Exploration Mining and Processing I

Confcrencc. Kalgoorlic
10187 s55 Rcsourccs and Reserves. Sydney
I
I 1/87 South Australia’s Mining Hcritagc
!
1988 1/ x x S56 2 I ’I Cciitiiiy Highcr Production Coal Mining Systems Syinposiuin. Wolloiigoiig :
m x The Sccond liitcrnational Confcreiicc on Prospecting in Arid Terrain. Pel-th I

3\88 s57 ‘I‘hird Mill Operators’ Confcrencc. Cobar

4/88 S58 Undcrground Opcrators’ Confcrcncc. ,Mount Isa
5/88 Fourth International Mine Ventilation Congress. Drisbanc. (Proceedings and
Addcnduin voluinc)
61x8 * Annual Confercncc. Sydney: Minerals and Exploration at the Crossroads: The I

International Outrcach
7/88 s59 U
Second AuslMM iviincral Heritage Seminar. Sydncy
* !
8!8X S60 Econoinics and Practicc of Heap Leaching in Gold Mining Workshop. Caiiiis ~

9iX8 Third International Mine Water Congress. Mclbournc

I

I OIXX SO I Explosives in Mining Workshop. Melbourne

I989 1 i89 Mineralogy and Petrology. Sydney. February
21x9 Sccond Large Open Pit Mining Conference. Latrobc Valley Vic
3/84, NQ Gold ‘X9 Confcrencc, Townsvillc Qld
4/89 Annual Conference, Pcrth-Kalgoorlie: Education. Training and Profcssional
Dcvelopincnt; Industrial Mincrals; Projcct DcvelopinentlProccssiiig 1

!
5/89 Mineral Fucl Alternativcs and thc Greenhousc Effect. July 1989 I

6/89 Yon-ferrous Smelting Symposium: IO0 Ycars of Sinelting and Rcfining

Opcrations in Port Pirie, SA Septeinbcr 1989
7/89 Dewatcring Tcchnology and I’racticc Conferencc. Brisbane October I989
89 MINVAL ‘89. Mining and Pctroleuin Valuation 1989. Sydney Scptcinbcr 1989 I
,
1990 I I90 * Ore Rcscrvc Estimates - Thc Impact on Miners and Financiers. Mclboumc. March
I990
2/90 Annual Conferencc. The Mincral Industry i n S e w Zcaland, Rotorua Xcw
Zealand. March I990
3/90 Pacific Riin Congrcss. Gold Coast Qld. May I990 I

4!90 * Mining Industry Capital and Operating Cost Estiination Conferencc. Sydney. June
I990
5/90 * Third International Syniposiiiin on Rock Fragmentation by Blasting. Brisbane,
I
August 1990 I
6/90 Sir Edgeworth David Memorial Oration. May 1990
7/00 Mine Geologists’ Confcrcnce. Mount Isa. October I990
1991 1/91 Fourth Mill Opcrators’ Confercncc, Burnic Tas. March I99 I
219 I World Gold ‘91, Cairns Qld, April I Y Y I
31Y I Mining Industry Optiinisation Conference, Sydney. June 199 I
419 I * I’NG Gcology, Exploration and Mining Confercncc. Kabaul. June I Y 9 I
519 1 Qld Coal Syinposiuin. Rrisbane. August I991 I
619 I * Reliability Production and Control in Coal Mincs. Wollongong. Scptcinbcr I99 I I
719 I * Fifth AuslMM Extractive Metallurgy Confcrcncc, Perth. Octobcr I09 I

Copies of all books currently in print can be obtained from The Institute office
l‘el(03) 9662 3166 or Fax (03) 9662 3662

* = Out o f print
’l’hc ‘S‘ iiunibcrh i n tlic third column rclkr to aii oldcr idciitifyiiig nunihcr for Symposia. tlic nunibcrs prccccding tlic ‘ S ’ iiuinbcr sigiiify Ilic iicw ,
puhlic3tioii ordcring iiuinbcr
I992 I I92 Enviromine Australia, Sydney NSW, March I992
2/02 ‘l’heAuslMM Annual Conference. “l‘hc Statc-of-the-Art - A Product of 100 Years
of I..earning’. Broken l l i l l NSW. May 1992
3/92 ‘Energy, Economics and Environment’ Gippsland nasin Symposium. Melbournc.
Junc 1992
4/92 Arnold I3lacli Mineral Heritage Oration
5/02 The Man from ASAKCO: a life and times of Julius Kruttschnitt
6/92 5”’ Underground Operators’ Confcrcnce, Ballarat, July 1992
7/92 * I 1 th International Conference on Ground Control in Mining. Wollongong. July
I992
8/92 * Third I x g c Opcn Pit Mining Confercncc. Mackay. August 1992
0192 Extractive Metallurgy of Gold and Base Metals Confcrcnce. Kalgoorlie. October
1992
I0/!’2 Sampling I’racticcs in the Minerals Industry, Mount Isa. November 1992
I 1/92 * Kchabilitate Victoria, Latrobc Valley, November 1992
I993 I I93 Mining Peoplc - A Century
2/93 ‘l’heAusIMM Centcnary Conference, Adclaidc. March I993
’
3/93 XVllI lntcrnational Mineral Proccssing Congress. Sydney, May 1993
4/03 Narrow Vein Mining Scminar. Hendigo, Junc 1993
5/93 International Mining Geology Confcrcnce. Kalgoorlic, July I993
6/93 Vlll Austialian Tunnelling Conference, Sydney, August I993
7/93 World Zinc ‘93 - International Symposium. Hobart, October 1993
I994 1I94 1994 AuslMM Student Conference, Brisbane. April I994
2/94 PNG Cicology, Exploration and Mining Confcrcncc, Lae, PNG. lune 1994
3/94 No Two ’l‘hc Same by Bert Mason
4/94 Sixth Extractive Metallurgy Conference, Msbane July 1994
5/94 1994 AuslMM Annual Conferencc, Darwin, August 1994
6/94 4”’ I x g c Open Pit Mining Conference. Pcrth, September 1994
7/94 Recent Trends in Heap Leaching, Rcndigo, September I994
8/94 Maintenance in thc Mining and Metallurgical Industries,Wollongong, October
I994
9/94 Fifth Mill Operators’ Conference, Roxby Downs, October 1994
10194 Mineral Valuatiorr Mcthodologies 1994, Sydney, October I994
I 1/94 Victorian Mining Week Confcrencc. Melbournc, October 1994
1995 I 195 1995 AuslMM Annual Confercncc, Newcastle, March 1995
2/95 Sir Mauricc Mawby Memorial Oration
3/95 World’s Best Practice in Mining and Processing Conference. Sydney, May 1995
4/95 APCOM XXV 1995 Confcrcncc, Brisbane, July 1995
5/95 Mineral Valuation Methodologics 1994, Sydncy. Octobcr 1994 (reviscd)
6/95 EXPLO 95 Confcrcnce. Brisbanc. September I995
1/95 Underground Operators’ Conference, Kalgoorlie, November 1995
8/95 Young Professionals’ Confcrcncc, Mt Isa, October 1995
9/95 * PACKIM ‘95 Congress, Auckland, Ncw Zealand. Novembcr 1995
10195 Ethics, liability and the Technical Expcrt, Sydney. December 1995

Copies of all books currently in print can be obtained from The Institute office
Tel(O3) 9662 3166 or Fax (03) 9662 3662

* =Out of print
‘l‘he ‘ S ’ numbers in the third column refer to an older identifying number for Symposia, the numberspreceeding the ‘ S ’ number signify the new
publication ordering number.
I I996 1/96 * 1996 AusIMM Annual Confcrcnce, Pcrth. March 1996 !

*
I ai96 I996 AiislMM Annual Confcrcnce Supplcinentary Voluinc, Pcrth. March 1996 :
i
2/96 Ethics, Liability and thc Technical Expcrt. Sydncy. March 1996 1

3/90 Entrcprcneurs and Partncrs. Sydney. July I996 !

4/06 Contract Operators’ Conferencc, Kalgoorlic, Octobcr 1996
1
5196 Asiail’acific Mining Coinmunications Suininit, Singapore, Sovcinber 1906 -
Withdrawn
6lY6 * Nickel ‘96, Kalgoorlic. Noveinbcr 1996
1997 I 197 1997 AusIMM Annual Confcrencc. B a h d t , March 1997
2/97 World Gold ’97 Confcrcnce. Singapore. Scptcinber 1997 1

3197 Sixth Mill Opciators’ Conference. Madang. PNG, Octobcr I Y97

4197 Gein 97. Madang. PNG. Octobcr I997 1
5/91 Contract Operators’ Confcrcnce, Brisbane, Qld. Octobcr 1997
6/97 Third lntcrnational Mining Gcology Confcrcnce. Launccston. Tas, November
I997

7/97 Mindev 97 - The International Confcrcnce on Mine Projcct Dcvclopinciit. Sydncy,’

Novembcr I997
8/97 1997 AuslMM Travclling Technology Forum, Singleton. NSW. March 1997
1998 I 198 MINEFILL ‘98 - Thc Sixth lntcrnational Symposium on Mining with Backfill.
Brisbane. Qld, April 1998
2/98 AuslMM’98 - The Mining Cyclc. Mount Isa. Qld, April 1998
3/98 Scvcnth Undcrground Operators’ Confcrencc. Townsvillc, Qld. JundJuly I998
4/98 Mine to Mill Confcrcnce, Brisbane, Qld, October 1998
5/98 Third Regional APCOM - Computer Applications in thc Minerals Industries
International Symposium. Kalgoorlie, WA, Dccernbcr 1998
1999 I199 10th Australian Tunnelling Confcrcnce. Melbourne. Vic. March 1999
I a199 10th Australian Tunnelling Conferencc Kcynote Addrcsses and Asia-Pacific
Forum, Melbourne, Vic. March 1999
2/99 Studcnts and Young Profcssionals Confercncc. Pcrth. WA. July I999
3/99 ICARISM ‘99 Confcrcnce, Pcrth. WA. Septcinbcr I999
4/99 PACKIM ’99 Congress. Bali, Octobcr 1999
5/99 Explo ‘99 Conference. Kalgoorlie, WA. Novcinber 1994
2000 I 12000 Southcrn Africa - Australia Mincral Scctor Synergics Symposiuin, Canberra,
ACT, March 2000
212000 Aftcr 2000 - Thc Future of Mining, Sydncy. NSW, April 2000
312000 4th lntcrnational Mining Gcology Confcrcnce. Coolum. Qld. May 2000

Copies of all books currently in print can be obtained from The Institute office
Tel(O3) 9662 3166 or Fax (03) 9662 3662

* = Our o f p r i n t
Thc ’S’iiuinbcrs i n tlic third c ( ~ I u i ~ irctcr
i i to ;in oldcr itlcntifyiiig nuiiibcr for Symposia. ttic iiuiiibcrs prcccctliiig 11ic ‘S’ numbcr signify tlic iicw
publication ordcring iiumbcr
 SPECTRUM SERIES
1. Making the Mount Isa Mine. 1923 - 1933 Doir Berknrutr 1996
2. History of Drilling Graham McCogggaii ivy6

3. The Cobar Mineral Ficld - A I990 Perspective Wurren Cook 1996

Andrew Ford
Juliun McDertnoii
Peler Sirindish
Croig Siegtnutr atid
Therese Sleggnrati
4. Towards 2000 - Kcsourcc to licscrvc Inputs Seininar - Melbourne. Vic 1y97

5. Towards 2000 - National Conference on lroninaking Resources and Reserves 1yy7

Estiination. I’erth. WA
6. Towards 2000 - The Kcsourcc Ilatabasc Towards 2000 - Wollongong, NSW 1097
7. Towards 2000 - Ore Rcserves and f’inaiicc - Sydney. NSW 1998
8. Towards 3000 - Assessment of’ Reserves in Low Rank Coals - Monvell. Vic 1yy7

9. Towards 2000 - Orc Kcscrvc Reconciliation Workshop - Darwin, NT 1997

10. Towards 2000 - Gold and Nickcl Ore Reserve Estimation Practice Seminar 1yy7

11. Towards 2000 - Resourcc/Keserves Estimation Practice in the Central West 1y98
Ncw South Wales Mining Industry. Cobar, NSW

Copies of all books currently in print can be obtained from The Institute office
Tel(O3) 9662 3166 or Fax (03) 9662 3662