An analysis on proper exploration structure and procedure
An analysis on proper exploration structure and procedure By: Dustin Halcomb
Overview Introduction Purpose of exploration Why this research was performed. Decision making procedure The principles of exploration Influential factors Phases Method selection process Five critical procedures and considerations Results New outline based on reasearch Recommendations for future study Case studies Conclusion
Introduction Purpose of exploration Resource quantification Reserve analysis and calculation Overall Mining Potential Why this research was performed To develop proper decision making outline Aid companies in future project design and execution
The principles of exploration Influential factors Phases
Influential Factors Geology Grade Variability Size Variability Geography Access Company Finances Project Funding Type of Material Value Attributes
Phases Angoletti 2010 Bailly and Still 1973 Name Exploration Methods ObjectivesName Exploration Methods Objectives Area Cost* Geophysics(Airborne, Target locating Airborne Geophysics, Soil Magnetic,Electrical), Drainage, low density lines (> RegionalRegional Find targets 100 1 Geochemistry, 3D sampling 500 m) for ground geophysics and Geochemistry sampling lines. (Indirect Methods) Trenching, Diamond Classify targets Drilling (seam thickness, High density sample lines (< Classify and Recon location) 500 m) for soil geochemistry and first prioritize each 10 10 Semi trenches target for next Detail (Indirect Methods) phase. Discard Outcrop sampling, Define mineral targets Target evaluation and analysis limits, surface Area geology Define resources Surface characteristics Detail and ore body 1 Appraisal Trenches and Diamond drilling 100 to limits for each (Direct Methods) target. Discard 200 Laboratory testing Define targets Sampling mineral Evaluation content, Define resources and limits for Feasibility 300 to grade etc.)Valuation each target. Discard targets studies. 0.1 500 (Direct Methods) Reserve
Summary of Four Major Phases Regional Area Reconnaissance Target Area Detail Mineral Body Evaluation
Method selection process Five Critical Procedures Selection of profitable ore body Selection of Exploration team Selection of Method Selection of Equipment Economic Evaluation
Five Critical Procedures Selection of profitable ore body Selection of Exploration team Selection of Method Selection of Equipment Economic Evaluation
Ore body Generally based on profitability Market Futures
Exploration Team Should be led or have ties to an experienced geologist Team should consist of experienced personnel in surveying, and sampling techniques. Should have knowledge or experience with various pieces of equipment. Generally, the team with exception to the manager should be hired from consulting firms.
Methods/Equipment Surveying Methods and Techniques Generally three methods Methods Techniques Ore Body Metallic Photogenic Study, Aerial exist (Bailly and Still 1973) Examination, Outcrop Examination, Geologic Geological Geologic logging Metallic Geophysical Water sampling, Rock Geochemical Sampling, Assaying Geochemical Aeromagnetic surveys, Metallic Geophysics- Electromagnetic, Remote A fourth has also been Airborne sensing Metallic , Coal considered Geophysics- Gravity, Magnetic, Seismic, Ground Resistivity, Self-potential 3-D sampling and 3D Sampling Trenching, Rotary Drilling, Metallic , Coal, Sediments evaluation and Evaluation Core drilling, Tunneling, Economic Evaluation.
Economic Evaluation Main Goal: Reserve estimation with minimal cost Two main approaches that are considerable: Angloletti (Option Space Theory), Morley (Geologic Risk Method) Option Space Theory Geologic Risk Method
Economics Continued The evaluation of costs Geologic Risk Method. Morley 2007 must be performed for each individual phase. The ability to proceed to the next phase is based on this.
Conclusions The intent of this research was to develop a comprehensive decision making outline. Research analyzed methods used in other sources to construct a cohesive chart. Further studies are needed: Case studies
References Angioletti , S. 2010. Appraisal techniques to rank a corporate set of exploration projects. SME Preprint No. 10-065. Phoenix, AZ: SME. Tulcanaza, E. 1982. Analysis and assessment of grade variability for improving exploration planning and reserve estimation. SME Preprint No. 82-352. Littleton, CO: SME. Hanks, G.T. 1997. Process development for exploration projects. SME Preprint No. 97-41. Phoenix, AZ: SME. Davidson, D. M. 1958. Economics of geologic exploration. SME Preprint No. 5819A3. New York, NY: SME. Guzman, J. 1981. Geostatistics and financial economics applied to mineral exploration decision making. In Mineral Exploration Decision Making, Chap. 81. Mineral Economics Department: Colorado School of Mines, pp. 864-873. Millenbruch, D. G. 1979. An early appraisal of exploration projects. Journal of the Southern African Institute of Mining and Meatllurgy. 7(1): 431-434. Bailly, P.A. and Still, A.R. 1973. Exploration for mineral deposits. In SME Mining Handbook, Chap. 5. Society for Mining, Metallurgy and Exploration. pp. 2-97 Bailly, P.A. 1976. The problems of converting resources in reserves. Mining Engineering. 28(1): 27-38. Bruce, C. and Kennedy, B. 1982. Ore body evaluation. In Underground Mining Methods Handbook, Chap. 1. pp. 3-27 Morley, A. 2007. Evaluation of exploration projects. Presented at the Project Evaluation Conference, Melbourne, Vic, June 19-20