Chapter five and six

Mineral Resources Evaluation

and Ore Reserve Calculation
By: Selamawit D.

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 5. Strategy of exploration
 Mineral exploration covers the search for, and the
discovery, identification, and evaluation of deposits
but not their commercial development.
 The main purpose is success at reasonable cost of time,
money, and human skill.
 Success in mineral exploration can be scientific,
technical, commercial or, in an ideal case, all of them
at the same time.
 Scientific success (on occurrence) results in a
confirmation of scientific methodology (philosophy)
effectively used in the course of exploration: exactly2
the type of deposit searched for was discovered
 However, it may be noncommercial in grade or size.

 Technical success (on detection) means that technical

arrangements were well designed: tools and methods,
personnel, schedule, and financing were in balance, and the
operation was skillfully done. If a deposit existed, it was
certainly located.

 Commercial success means, naturally, that the mineral deposit

discovered meets all the criteria for a profitable operation.

 Key words in exploration strategy are

target definition, 3

risk analysis,
 5.1. MINERAL ECONOMICS
 The mere presence of mineralized body cannot
make it economically exploitable.
 It is economic assessment of mineral deposits
 Once a deposit is found its economic significance must
be evaluated before developing it.
 Evaluation takes into consideration geologic & non
geologic complexities that affect the profitability of the
commodity

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 Mineral economics deals with the complexity of decision
making in the field of mineral commodity .
• (Mineral Resource Evaluation consideration of
geologic & non geologic complexities )
Geological evaluation
Economics (demand‐supply, market price,
gov’t action, etc.)
technological
environmental consideration,
political situation
geotechnical factors etc….

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 When are mineral deposits exploited?
 A mineral deposits are exploited when they are
proved to be economic.
 Moreover it calls for the presence of efficient
technology to extract (mine) and to separate the ore
from the gangue .
 The feasibility study thus involves rigorous
geological , economical and technological evaluation
of the discovered mineral occurrences .

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 The following factors play important role in the
evaluation a potential ore deposit( economic
recovery of a mineral ) are:
Ore grade***
Mineralogical form***
By products
Commodity Price
Presence of undesirable sub/s
Gran Size and shape
Geometry of ore bodies

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Ore character (loose vs. hard
Availability of labor (both skilled and unskilled
labor)
 Mining method
Processing methods
Capital (infrastructures, mining & milling plants,
etc) and operating costs(salary, vehicles, etc)
Location
Environmental considerations
Political factors
Taxation & other governmental policies and
others. 8
Resource evaluation is the process of examining
a given mineral deposit if resource extraction is
feasible economically, technologically, socially,
legally …
Mineral resources can be defined as non-living,
naturally occurring substances that are
economically useful to us, whether organic or
inorganic in origin.

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Mineral deposit : - are concentrations of naturally
occurring minerals or rocks in/on the in earth's crust
in such form and amount that economic extraction
is possible currently or potentially.
• Ore minerals and cutoff grade
 Mineral Reserve: portion of the identified resource that
can economically, technically and legally be extracted
at present socio-economic conditions. They are profit
generating at the present time

Identified Resources: - resources whose location, grade,

quality, and quantity are known from specific geologic
evidence. 11
Ore body (ore deposit) :- is a part of mineral
deposit from which mineral(s) can economically
extracted at present.
Ore:- is a mineral or rock aggregate containing an
economic concentration of metal(s)
• To be an ore,
we often require significant enrichment of the
needed material or element above its normal
distribution in the crust. This enrichment is
termed the concentration factor .

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Concentration factor is defined as the factor by
which the element must be concentrated above the
background so as to be extracted economically.

Concentration ‐ it is equivalent to extractable

amount, which is tightly related to economic
considerations or profitability.

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• If the needed element has the normal crustal
abundance (Clark or background value) in a
specific mineral or rock, it cannot be
considered as a resource because of its lowest
amount.
• If an element is to be recovered profitably it
must be concentrated above its Clark to a
value called cutoff grade – the minimum
concentration of an element below which the
mineral/rock/deposit is considered to be
uneconomic at the present socio‐economic
conditions.

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 The following table demonstrates the Clark
values of the metals in different rock types and
their concentration factor so as to be considered as
resource.

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 A suitable source rock is indicated based on the
Clark value and the concentration factor.

 This is exemplified by Au in peridotite and

granite. It is easier to concentrate gold to 8 ppm in
peridotitic rocks (Clark = 0.01 ppm) than from
granitic rocks (Clark = 0.003 ppm).Why ???

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Extractable form ‐ this is related to the relative
ease with which the useful form of an element can
be extracted from its natural form.
• We mean the way that element or material of
interest is locked in the rock or mineral phase.
• The extractable mineralogical form is the ORE
MINERAL of that element. The separation of the
material of interest from the unwanted associates
is governed by (a) technological advance and
(b) economic factors

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• To elaborate the idea of “extractable form”, we see
the following example:
– Iron in olivine & pyroxene; and
– Al in clays and feldspars
• The elements have relatively high concentrations in
these minerals. However, they are not extractable
from these minerals because the way they are locked
in these minerals is not viable for separation at the
present technology; or even if separation is possible it
is not economical

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• Hence, the mentioned minerals are not ore minerals
for Fe and Al. To be extracted (technically and
economically), Al must be in the form of
BAUXITE, and Fe in the form of HEMATITE or
MAGNETITE.
• Extractable forms and the minimum concentration
needed for economic extraction are related because
of the fact that when an element is found in excess
concentration, it will have the chance to form its
own mineral among which some will be easier to
separate the element from the compound.

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• The following examples (taking Fe as an
example)clarify how high concentration of that
element and its extractable forms coincide.

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 Grade:-as it is defined above , grade is concentration
of metal in an ore body. We can have high grade ores.
High grade ores are economic but how much is “high
grade?’-this concept is relative to Cutoff grade – all the
grades above this are profitable.
– The cutoff grade is not geologic feature, rather it is
economic attribute to ore deposits because the limit
is set based on profitability and does not correspond
with any geologic feature. Therefore , the evaluation
of the mineral deposit starts by setting a minimum
limit of grade based on a number of factors which
are mentioned below
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 By product :-the presence of by- products maximize
the profitability of a deposit thereby increasing
the exploration success more than what would have
been without these by-products.

 Commodity price:- the market price is critical in

determining the feasibility of ore deposit. The price
must be estimated not only at the present time but
also forecasting of the future price.
– Different factors like demand and supply,
government action , recycling , etc determine the
price of commodities.

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Mineralogical form - the ore mineralogy
determines the ease with which the metal can be
separated . Moreover , recovery percentage of
metal varies from ore type to ore type .
For example:- Metal is present in native state,
theoretically recovery is 100%; next sulfide ores
have high recovery and last are the silicate ores .
The technology adopted for ore mineral processing
varies according to the mineralogical form (e.g.
silicates ) require complex and expensive
technologies while others need simple processing
(E.g.:- only washing )
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 Gran Size and shape:- play critical role in the
effectiveness of ore separation processes.

 Presence of undesirable sub/s:- these substance

have some negative effect in the separation
processes by either increase the cost of processing
or making difficult the whole ore dressing activity.
– The problem lies on the fact that they can not
eliminated by dressing processes, but only
during smelting.

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 Geometry of ore bodies:- the size and shape of
deposits affect the feasibility of mining project
through their role in determining the type of mining
method to be used , the easy of mining , the profit
margin, etc
 Ore character :- ores can be hard or soft which
affects the blasting and wall support conditions
which have a bearing on cost and safety.
 Labor :-the availability of both skilled and unskilled
labor is critical in mining and plays critical role in
the feasibility of a mining project

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 Mining method :- the type of mining to be used has
bearing on profitability of the operation as
underground mining is more expensive and
technically demanding than surface mining method.

 Processing methods:-there are a number of

technologies involved in separation of ores from
gangues . Technologies are variable in terms of their
sophistication and costs they incur.

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 Capital and operating costs:- Mining , unlike to
other industries , is a very expensive industry and
needs huge investment capital and also operating
costs. The availability of the capital is mostly a
limiting factor to the development of mineral
resource.
 Location :-the location determines whether a given
ore body is economical or not, mainly related to its
remoteness from infrastructure, markets and services
like transportation.

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 Environmental consideration:- mining by its nature
is degrading to the environment. Nowadays , cost
incurred by environmental rehabilitation are very
high. In some cases mining can be prohibited for the
sake of environmental protection

 Taxation:- taxes imposed by governments have their

own impact on the viability of a mining project
because they are expenses and hence prolong the
time of return of the invested capital.

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 Political factors :-a number of political factors may
complicate the mining process, especially political
instability is critical to mining.

• All the above list that feasibility studies of a mining

project involve a number of professionals other than
the geologist and those factors change through a time
• This means that a mineral deposit which is not
economic at present can be profitable in the future
or vice versa.

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 5.2 RESERVE ESTIMATION
 Theamount and quality of the mineral
commodity present are the main input to the
evaluation (feasibility study) of mineral deposits

 The two parameters here are:

I. Grade: concentration of the ore element in an ore

deposit
 Shows considerable variation within the same deposit
 Two of its varieties are important:

 Average grade

 Cut off grade

II. Tonnage – total amount of the ore aggregate in

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metric tons
 Highquality data are required for
estimating grade and tonnage of a
given mineral deposit

 Data source
 Bore holes (mainly)
 Pit
 Trench

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 Grade

 Average grade is calculated from a series of

grade data collected at each sampling point
within the ore body

 Average grade can be calculated for

 A block
 A bore hole, or

 The whole ore body

 Weighted average is the best estimator

instead of a simple arithmetic average
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 Weightingcan be done against length,
area, volume or density
 Hence,

Gavg=(G1*Th1)+(G2*Th2)+…+(Gn*Thn)⁄Th1+Th2+
…+Thn

 In
the above case, the weighting factor is
thickness

 Thesame can be done for other weighting

parameters
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 Tonnage

 For the sake of calculation, the ore body is

divided into blocks
 Average grade and thickness of the borehole at
the center of each block is assigned to the whole
block
 Area of each block is determined and then
multiplied by its thickness to get the volume
 The sum of individual volumes gives the total
volume of the ore body
 The total volume is multiplied by the tonnage
factor to give the total tonnage of the deposit, i.e.
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 T = A x Th x BD

T = Tonnage in tons
A = Area of influence on a plan or section (in km2, m2)
Th = Thickness of the deposit within the area of influence (in m)
BD = Bulk density of the ore

 Tonnage is given at a certain cutoff grade & hence cut off grade
should be determined first to calculate tonnage

 Ore reserve
 Is calculated as

Ore Reserve = T (t) * cutoff G (g/t)

 The value of the mineral commodity is then calculated based on market price
of the commodity (metal).

Ore Price = Ore Reserve * Unit Price 35

 Area Calculation
 The most critical step in reserve estimation is
knowing the area
 Most or all ore bodies have no defined
(regular) shape
 Hence, area calculation is challenging
 Approaches
 Divide the whole area into a number of regular
geometric figures in such a way that each figure has
a sampling point at its center
 Area calculation can be done on plan or
section views
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 Chapter six
Exploitation of Mineral
Resources
Introduction to Mining
methods

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 6. Introduction to Mining

 The term mining is used in its broadest context as

the extraction of any naturally occurring mineral or
other geologic material (solid, liquid, and gas) from
the earth or other heavenly bodies for utilitarian
purposes.
 Materials recovered by mining include bauxite,
coal, copper, gold, silver, diamond, iron, precious
metals, lead, limestone, nickel, phosphate, oil shale,
rock salt, tin, uranium, etc.

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 6.1 Classification of mining methods
Mining is the extraction of valuable minerals or
other geological materials from the earth, usually
(but not always) from an ore body, vein or (coal)
seam.
 Basically all mining methods entail two
fundamental tasks regardless of scale:
 breaking the ore, and
 transporting it to the beneficiation or
processing plant.

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Mining techniques can be divided into two basic
excavation types:
Surface mining Underground mining

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 Surface mining is a type of mining in which soil
and rock overlying the mineral deposit (the
overburden) are removed.
 Surface mining is used
when deposits of commercially useful minerals
or rock are found near the surface; that is, where
the overburden is relatively thin or
the material of interest is structurally unsuitable
for tunneling (as would usually be the case for
sand, cinder and gravel ). And for the other
reasons……
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 Surface mines are typically enlarged until either

 the mineral deposit is exhausted, or

 the cost of removing larger volumes of overburden makes

further mining uneconomic.
 Method of surface mining can be subdivided in various classes
and subclasses
– Mechanical mining (such as open pit/ open cut or open
cast, quarry mining and Auger mining)

– Aqueous methods (such placer and in situ leaching or

solution mining) are the broad categories of it.

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 Class Subclass Method
Mechanical mining Open Pit Mining
Open cast
Quarrying
Auger Mining
Aqueous methods Placer Dredging
Hydraulic Mining
Solution Surface Techniques
In Situ Leaching
Table:- Methods of surface mining can be subdivided into various classes and subclasses:

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Surface mining

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 Class Subclass Method
Mechanical mining Open Pit Mining
Open cast
Quarrying
Auger Mining
Aqueous methods Placer Dredging
Hydraulic Mining
Solution Surface Techniques
In Situ Leaching
Table:- Methods of surface mining can be subdivided into various classes and subclasses:

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 Underground mining, in which the overlying rock
is left in place, and the mineral removed through
shafts or tunnels.

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 Underground mining means the technique to recover
minerals from deposits below the earth’s surface.

 For this purpose, the underground mine needs a

system of excavations in the rock to gain access to the
mineralized areas.

 Applied for deep seated and/or steeply dipping and

high grade deposits.

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 For example:- excavate hard minerals, mainly those
containing metals such as ore containing gold, silver,
iron, copper, zinc, nickel and lead, but also involves
using the same techniques for excavating ores of
gems such as diamonds.

 underground mining also adopted when the ore body

is too deep and it’s not economically feasible to use
an open-pit.

 It is increasingly common to progress from open-pit

to underground mining of the same ore body.
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 Development of underground mining is more
complex than surface mining methods.
 It requires considerable more planning to take into account
access, ground support, ventilation, the effects of blasting,
and haulage of material from the mine to the plant.

 Ore extraction and underground development is

achieved by precise drilling and blasting techniques

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Figure Basic infrastructure required for a typical underground mine.
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Figure Basic infrastructure required for a typical underground mine
(3D ). Source: Atlas Copco 51
Mine shaft sinking in Namibia Mine shaft, South Africa Shaft section S.Africa, Au
mine

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Types of Underground mining methods
Based on the type of wall and roof supports
used, the configuration and size of production
openings, and the direction in which mining
operations progress there are three types of
underground methods:-
Unsupported Supported Caving
Room and Pillar Cut-and-fill Block Caving
mining Stopping
Stop and Pillar Square-set Sublevel Caving
mining Stopping
Shrinkage Stopping Stull Stopping Long wall mining
Sublevel stopping
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 Unsupported methods of mining are used to extract
mineral that are roughly tabular (plus flat or steeply
dipping) and are generally associated with strong ore
and surrounding rock.

 These methods are termed unsupported because they

do not use any artificial pillars to assist in the
support of the openings.
 However, generous amounts of roof bolting and
localized support measures may often used.

 Supported mining methods are often used in mines

with weak rock structure.
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Underground mining

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Underground mining

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End of chapter six
thank you!

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