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Conference Proceedings

World Gold 2019

Conference Proceedings

World Gold 2019

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Give a mate a break, please

Is it true that the members of the gold sector of the mining industry frequently deliver lower returns than many other sectors? Well, it is not surprising some will say, as the risk and uncertainty is greater. But need it be so often? Estimating gold project revenue can be more of a challenge because the revenue variables can vary greatly. This is widely accepted as a fact of life. But is it really? Do we adequately address all the basics that underpin the projects potential revenue within its control? Estimates of revenue parameters within the control of the mine operator, typically, are head grade and site metallurgical recovery. In the case of head grade, it can often be highly variable, especially for mining projects that are primarily dependent on the gold. Prof Cliff James, in his address in Kalgoorlie, May 1994 reminded us of a very useful principle when dealing with intractable problems. If finding the right answer is proving to be difficult, it is quite likely that you are asking the wrong questions. In the rush to release the maiden mineral resource estimate for a prospect, are some overlooking some of the basics? For example, is the drill data being allowed to speak on its behalf or is someone acting as data interpreter? Do you need the same amount of data to appreciate the mineral resource grade as you do to gain a realistic appreciation of mineral resource tonnes for a gold project? This paper will explore some basics frequently under considered in the process of achieving a reliable mineral resource estimate and in particular common validation steps that can be associated with the overall mineral resource grade estimate. There could be greater potential for the gold sector to increase its overall economic return with little additional outlay by more fully addressing the basics which allow the gold bearing rocks to speak. CITATION:Lee, T A, 2019. Give a mate a break, please, in Proceedings World Gold 2019, pp 6586 (The Australasian Institute of Mining and Metallurgy: Melbourne).
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  • Published: 2018
  • PDF Size: 1.545 Mb.
  • Unique ID: p201906012

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