THE AMOUNT OF mineral resources and reserves available to a mining
company underpin the value of its business for all the stakeholders in
that business. That's one reason why the reporting of resource and
reserve information is now rather tightly regulated in most mining
countries. Frequently too, especially where the junior mining
company/senior company pattern of project financing and development is
adopted, more than one mining firm with contracted consultants,
analytical laboratories etc will contribute to a resource's
information database, making careful evaluation at the project
feasibility study stage a must.
It is also important to keep in mind that the
resource/technology/price relationship is dynamic since changes in
product market prices, mining and/or process economics can affect the
viability of exploiting deposits while or after they proceed through the
various stages of exploration and evaluation. It is interesting to note
in this context that a large but low-grade nickel and platinum group
metals deposit in Europe which was regarded as uneconomic only four
years ago will now be mined next year for treatment by a
biohydrometallurgical route.
Although mineral exploration is expensive, especially the detailed
core drilling phase, it is essential to do it properly, gathering all
the relevant data in as much detail as possible. It is calculated that
the evaluation of detailed exploration data can take up to 70 per cent
of the total time spent on producing resource and reserve statements for
a deposit.
Unless the mineral deposit is unusually rich in grade and simple in
mineralogy, successful competitive exploitation will depend on a full
understanding of the implications of geology and geometallurgy for
mining and processing. This, as Anglo American puts it, is the
foundation of the value chain--and this is why the company not only
spends a large amount of money acquiring geodata but also constantly
assesses techniques for extracting more information from this data.
The airborne magnetic SQUID
Anglo Platinum and De Beers were both initial supporters of the
development of a revolutionary technology for airborne magnetic
exploration. This is the Superconducting Quantum Interference Device
(SQUID) manufactured by the Institute of Physical High Technology which
is located at Jena in Germany. Subsequently AngloGold and the Anglo
Technical Division have both backed the project.
The niobium devices become superconductive at
approximately--270[degrees]C and six of them are built into a cryostat
which in turn is built into a cylinder together with an Inertial
Measuring Unit, which is a position measuring device similar to GPS. The
cylinder is suspended from a survey helicopter and data is fed to a
laptop computer in the aircraft. After compensation for flight movements
the magnetic data is interpreted by a geophysicist who creates an image
recording magnetic intensities and gradients in the magnetic field.
One application for Anglo Platinum is the identification of dykes
and iron-rich ultramafic replacement pegmatoids within the mining area
that can be mining hazards, causing falls of ground if they are not
taken into account. In diamond exploration the SQUIDs can detect
kimberlite structures. Anglo says that tests over the past three years
have advanced the functionality of the technology and initial teething
problems are being eliminated. Spectem Air was selected as the preferred
operator to conduct surveys for the participating Business Units and
ordered the first commercialised SQUID from the Institute for delivery
in the third quarter of 2007.
More powerful modelling
One tool that Anglo's Geosciences Resource Group (GRG) in
South Africa has started using is the Gocad 3D modelling software
package distributed by Mira Geoscience. Gocad's major advantage is
its ability to integrate various data types generated in the mining
industry, including geological, geophysical, geochemical,
hydrogeological, rock mechanical and metallurgical information.
Consequently staff from various disciplines can share one
quantitatively-consistent and visually-comprehensible model.
According to the GRG, Gocad also arguably provides the
industry's most advanced geological surface- and volume-modelling
tools, allowing construction of large-scale geological models direct
from primary data. Models can also be imported and quantitatively
assessed by incorporating geophysical and other datasets. The software
can produce structural, rock mechanical and uncertainty models fairly
simply, either manually or by using predefined work flows.
The workflows can be fully audited and they create an HTML document
recording all the steps taken. Because Gocad is a true topological 3D
modelling environment it can query all the integrated data in true 3D
space using GIS functionality. This allows the user to test the models
against the data in order to reveal and characterise relationships and
define targets based on complex criteria.
For example, a deposit block model can be analysed to see if there
is a correlation between ore grade and fault proximity. Gocad is also
one of the few commercially available 3D packages able to accommodate
the 3D seismic data acquired for Anglo Platinum and allows the GRG to
integrate borehole geophysics and borehole radar data as well.
Working with Mira, the GRG is developing Hazmap, a tool designed to
flag potential hazards in the open pit or underground mining
environments. The software automatically computes a hazard index,
highlighting areas that are potentially unstable. Initially started with
AngloGold Ashanti, Hazmap is being modified for use in coal and platinum
mines.
More powerful drill rig suppliers
The consolidation process that created two main worldwide suppliers
of both surface and underground development and production drilling rigs
has now taken a fairly firm hold of the exploration drilling market as
well. And the same two groups, Atlas Copco and Sandvik, are the key
players.
It is some time since Atlas Copco decided to build on the very
successful Craelius operation, building exploration core drilling
equipment near Stockholm, Sweden, by acquiring JKS Boyles in Canada and
elsewhere.
Further purchases followed, together with expansions in other
geotechnical areas. Last year Sandvik decided to compete in this area
too, buying Australian companies UDR and SDS, which also operates in
Africa. Sandvik has also acquired Hagby, Swedish manufacturer of the
Onram core drilling rig range. Mineral Exploration is now one of
Sandvik's five mining and construction business segments, albeit
the smallest in earnings terms at present.
COPYRIGHT 2007 Alain Charles Publishing
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