AIG-ADIA Drilling for Geology seminar 1/8/2014 Drilling data inputs to Mineral Resources – The importance of good systems and procedures AMC Consultants Pty Ltd Mark Berry, Principal Geologist Questions to consider • • Why drill? – To explore and discover, then if successful: – To define, quantify, characterise, and classify What are the goals? – To generate an estimate of mineral resources – To convert mineral resources to ore reserves – To support the decision to build a new mine, or – To support the continued operation of an existing mine 1 AIG-ADIA Drilling for Geology seminar 1/8/2014 JORC Code definition: Mineral Resources • “A concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction”. • “The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated, or interpreted from specific geological evidence and knowledge, including sampling”. “Mineral Resources are subdivided, in order of increasing geological confidence, into Inferred, Indicated, and Measured categories”. • Taken from the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012) JORC Code definition: Ore Reserves • • • “The economically mineable part of a Measured and/or Indicated Mineral Resource”. Includes diluting materials and allowances for losses, which might occur when the material is mined or extracted, and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. Two categories: Probable, Proved. Taken from the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012) 2 AIG-ADIA Drilling for Geology seminar 1/8/2014 2012 JORC Code: Relationship between Exploration Results, Mineral Resources, and Ore Reserves Taken from the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012) For many projects, direct observations based on drillholes comprise between 0.0001% to 0.001% of the volume of a mineral deposit 3 AIG-ADIA Drilling for Geology seminar 1/8/2014 Drilling data inputs to Mineral Resources: What information is collected • • Location – collar and downhole Geology – – – – – • • • Lithology Weathering Alteration Structure Mineralisation Geochemistry Geotechnical data Geophysics Drilling data inputs to Mineral Resources : How do we know it is of good quality? • Systems, standard operating procedures and operating practices • • Observation skills Data recording methodology • • Data validation processes Quality assurance and quality control (QA/QC) 4 AIG-ADIA Drilling for Geology seminar 1/8/2014 Diamond drilling: Some specific issues • Recovery • Logging and sampling protocol • While diamond drilling is generally thought of as producing a better representation of what is in the ground, obtaining a representative sample for analysis can be challenging in some geological environments. Case study: Coal drilling Drilling a highly sheared coal deposit 5 AIG-ADIA Drilling for Geology seminar 1/8/2014 Case study Drilling method (coring) Case study Example of drill core recovered from drilling 6 AIG-ADIA Drilling for Geology seminar 1/8/2014 Case study: Minerals drilling While diamond drilling is generally thought of as producing a better representation of what is in the ground, obtaining a representative sample for analysis can be challenging in some geological environments. Core photograph of friable vein with sulphides washed out and also lost to tray Example of core photograph illustrating friable material with sulphides lost 7 AIG-ADIA Drilling for Geology seminar 1/8/2014 Case study Case study: Recovery issues Recovery and core integrity improve markedly outside mineralisation, as shown on the next slide. Case study Recorded recovery: waste vs ore FROM TO Drilled length Measured core length % Recovery Recovery HOLENO HOLENO 160.9 162.45 1.55 1.55 100 100 Comments HOLENO 162.45 163.9 1.45 1.45 100 100 HOLENO 163.9 165.4 1.5 1.5 100 100 HOLENO 165.4 166.9 1.5 1.5 100 100 HOLENO 166.9 168.45 1.55 1.55 100 100 HOLENO 168.45 169.9 1.45 1.45 100 100 HOLENO 169.9 171.4 1.5 1.55 103.33 103.33 HOLENO 171.4 172.8 1.4 1.4 100 100 HOLENO 172.8 174.35 1.55 1.55 100 100 HOLENO 174.35 175.8 1.45 1.45 100 100 HOLENO 175.8 177.2 1.4 0.8 57.14 57.14 HOLENO 177.2 177.8 0.6 0.4 66.67 66.67 Ore Zone HOLENO 177.8 178.6 0.8 0.8 100 100 Ore Zone Ore Zone HOLENO 178.6 178.8 0.2 0.2 100 100 Ore Zone HOLENO 178.8 179.4 0.6 0.55 91.67 91.67 Ore Zone HOLENO 179.4 180.1 0.7 0.7 100 100 Ore Zone HOLENO 180.1 180.5 0.4 0.35 87.5 87.5 Ore Zone HOLENO 180.5 180.9 0.4 0.4 100 100 Ore Zone HOLENO 180.9 181.3 0.4 0.25 62.5 62.5 Ore Zone HOLENO 181.3 181.95 0.65 0.65 100 100 Ore Zone 8 AIG-ADIA Drilling for Geology seminar 1/8/2014 Case study: Core sampling protocols This is mineralised This is waste The geologist must decide whether to sample using geological contacts or on regular intervals that ignore the geology Chip drilling: Some specific issues • Sampling procedures • • Moisture Recovery • Drill cuttings are often sub-sampled at site. This is a key source of potential problems for mineral resource estimates Often, the total weight and/or moisture of the sample interval is not recorded. • 9 AIG-ADIA Drilling for Geology seminar 1/8/2014 Sub-sampling options Non-biased samples: Riffle splitter design and usage • Riffle splitters should follow these rules: – At least 12 chutes. – Feed centrally with a well-designed scoop and uniform distribution over the chutes. – Feed slowly. – Even number of chutes. – No sloping hopper to overfeed the end chutes. – The size of the chutes should be matched to the size of the particles. 10 AIG-ADIA Drilling for Geology seminar 1/8/2014 Non-biased samples: riffle splitter Potential for biased samples: Poor designs and/or practices 11 AIG-ADIA Drilling for Geology seminar 1/8/2014 Cleaning the sub-sampling system Sub-sampling: Dealing with wet samples 12 AIG-ADIA Drilling for Geology seminar 1/8/2014 Weighing samples at the drill site Case study: These are all 0.5 m intervals. Why are they different and consequences? 13 AIG-ADIA Drilling for Geology seminar 1/8/2014 Case study: Statistical analysis of recovery Cu grade Relationship between diamond drill core recovery and copper grade. This data set suggests there is no systematic bias in grade linked to recovery. Case study: Mineral Resource estimation and impact of core recovery assumptions Example showing the effect on mineral resources of different assumptions about the grade of drill core not recovered. Resource model re-estimated assuming zero grade for core loss instead of average intercept grade Assuming average intercept grade Lode Tonnes Au (g/t) Assuming zero grade Au oz Tonnes Au (g/t) Au oz X 165,300 12.1 64,300 165,300 10.6 56,300 Y 52,100 22.3 37,400 52,100 19.0 31,800 Z 27,300 10.7 9,400 27,300 10.3 9,000 Total 244,700 14.4 106,600 244,700 12.6 92,600 Percentage difference in ounces 13.1% This emphasises why auditors will focus on core and sample recovery, particularly in certain mineralisation styles. 14 AIG-ADIA Drilling for Geology seminar 1/8/2014 Conclusions • • For many deposits, drillhole data is the primary data input to the estimation of mineral resources and ore reserves. Good systems, procedures and practices are required to ensure drillhole data is well collected, of high quality, and fit for purpose. • QA/QC processes must cover all drillhole data inputs to mineral resources and ore reserves, not just analytical data. • Good documentation and data management is essential, as there must be a good audit trail. These are all prerequisites for a good mineral resource estimate. • AMC – the business of mining • Geotechnical Engineering • Geology • Corporate Consultancy • Coal & Energy • Business Improvement • Feasibility Studies • Mining Our Experience More than 6,500 projects across more than 92 countries 15
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