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2002 REFERENCE FOR MINERAL

RESERVES AND RESOURCES

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL RESERVES AND RESOURCES

This Reference for Mineral Reserves and Resources is the sole property of
Barrick Gold Corporation and has been prepared by the employees of
Barrick solely for their own reference in preparing internal reports and
analyses. Except by employees of Barrick in the performance of their
employment or with the prior written permission of an authorized officer of
Barrick, no part of this Reference volume may be (a) reproduced, stored in
a retrieval system or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, or (b) adapted, quoted,
referenced or otherwise used by any person.
The purpose of this Reference volume is solely to provide an easily
accessible collection of resource materials relevant to the various Barrick
professionals involved in estimating mineral resources and reserves. The
procedures and specifications described in this Reference volume do not,
and are not intended to, establish fixed policies or standards of practice
applicable at all times or in all situations.

BARRICK GOLD CORPORATION


REFERENCE FOR MINERAL RESERVES AND RESOURCES
PREFACE
The purpose of this first edition of the Corporate Reference for Mineral Reserves and
Resources is to provide key information to the geologist, mining engineer, metallurgist,
resident manager, or other persons whom are responsible for any aspect of estimating
and reporting mineral resources and reserves at a Barrick operation, developing project,
or advanced stage exploration property. Because a single individual seldom possesses
an in-depth knowledge of all of the technical issues that must be considered in
estimating and reporting mineral resources and reserves, this volume attempts to
familiarize the reader with any aspects of the process that he or she does not encounter
on a routine basis. The need for this reference was recognized earlier this year during
the Corporate Ore Reserves Initiative. It has been assembled with the goal to provide
some consistency throughout Barricks operations and projects with respect to all
components and considerations regarding mineral reserves and resources. The primary
focus of this first edition is on gold and, as such, certain sections of the work do not
address other commodities (copper, lead, zinc, or nickel) in great detail. Subsequent
editions will add information relative to these commodities as required by Barricks
project portfolio.
This volume covers all of the basic technical and administrative issues that must be
addressed in order to report mineral resources and reserves within the rules set forth by
the applicable securities jurisdictions (Canada National Instrument (NI) 43-101, AusIMM
JORC, and United States SEC). In effect, it provides the framework that a Qualified
Person (as defined by NI 43-101), or other technically qualified individual, would typically
follow to develop a technical report required by one of the securities jurisdictions or in
preparing a detailed audit report required by a commercial lending institution for project
financing. Several parts of this reference also provide more in-depth technical
information for certain critical topics, such as drilling methods and procedures, and
assaying procedures. However, this volume is not intended to be an exhaustive
reference or to provide solutions for all technical issues. The unique aspects of each
deposit or project make such an endeavor impossible from a practical standpoint.
This Reference volume is still in the review process at the corporate level. Minor
changes to the content will likely result from that review and will be incorporated in a
subsequent edition. A few sections still in preparation have not been included. In order
to provide this volume in a timely manor for year-end reserve work, it is being distributed
in preliminary form. The operations staffs are encouraged to review and consider all the
aspects of this Reference when preparing 2002 year-end reserves. There will be a
follow-up Reserves and Mine planning conference late in the first quartet of 2003 to
discuss components of the Reserves Initiative, this Reference for Mineral Reserves and
Resources, and to develop new resource modeling and mine planning ideas.

ACKNOWLEDGEMENTS
The initial basis for this reference volume was the excellent and comprehensive
Operations Geology Procedures Manual that was assembled by Homestake Gold of
Australia. Maurice Rowley and Alex Mandyczewsky were instrumental in compiling and
editing the Homestake work, and Maurices guidance during the early stages of this
Barrick Reference for Mineral Reserves and Resources is greatly appreciated.
The editors wish to thank the other Barrick employees who contributed to this volume,
including Chris Bostwick, John Frostiak, Patrick Garver, Bob Leonardson, John
McDonough, Ren Marion, Craig Munson, Sybil Veenman, Jeff Volk, Martin Wafforn,
and Cindy Winwood. Independent contributors included David Tutton of DAT Mine
Consulting, John Goode of J.R. Goode and Associates, Ian McBride of Davies, Ward,
Phillips, and Vineberg, Richard West, Ron Crouse, and Joyce Austin of Call & Nicholas
Inc., and Chris Lattanzi of Micon International. Thanks are also due to Jane Spooner
and Lynn Mortimer of Micon International for final review of the volume.
Rick Sims of Barrick and Don Earnest of Resource Evaluation Inc. authored portions of
the reference and also served as editors of the volume.

List of Abbreviations
Abbreviation

Unit or Term

Abbreviation

Unit or Term

US$
US$/g
US$/oz
US$/st

US dollar(s)
US$ per gram
US dollars per ounce
US dollars per short ton

kg/t
km
lb
LHD

US$/t

US dollars per tonne

LMIS

%
<
>
3-D
m
AAS
Ag
ANFO
ARD

LOM
M
m
mg
mil
mm
Mt
Mt/y
NaCN
NPV

net present value

Au
Barrick
BD

percent
less than
greater than
three-dimensional
microns, micrometres
atomic absorption spectroscopy
silver
ammonium nitrate-fuel oil
acid rock drainage
American Society of Testing and
Materials
gold
Barrick Gold Corporation
bulk density

kilograms per tonne


kilometre(s)
pound(s)
load-haul-dump
laboratory management information
system
life-of-mine
million(s)
metre(s)
milligram(s)
thousandth(s) of an inch
millimetre(s)
million tonnes
million tonnes per year
sodium cyanide

NSR
oz
oz/t

cfm

cubic feet per minute

P90

CIL
CN
cm
CMS
cm3
CRM
d
D
DC
DCF
DDH
DTH
ft

carbon-in-leach
cyanide
centimetre(s)
cavity monitor survey(s)
cubic centimetre(s)
continuous flow ring mill
day
density
diamond core
discounted cash flow
diamond drill hole
down-the-hole
foot, feet

PGM
pH
ppb
PPE
ppm
psi
PVC
QA
QC
RC
RD
ROM
RQD

grams

SEM

G&A
g/t
g/t Au
HDPE

general and administration


grams per tonne
grams of gold per tonne
high density polyethylene
H-diameter core, Longyear Q-series
drilling system
inductively coupled plasma
inductively coupled plasma-atomic
emission spectrometry
inductively coupled plasma-mass
spectroscopy
inch(es)
kilogram(s)

SG
SMU
t
UCS

net smelter return


ounce(s)
ounces per tonne
particle size at which 90 per cent
passes
platinum group metal(s)
concentration of hydrogen ion
parts per billion
personal protection equipment
parts per million
pounds per square inch
polyvinyl chloride
quality assurance
quality control
reverse circulation
relative density
run-of-mine
rock quality designation
scanning electron
microscope/microscopy
specific gravity
selective mining unit
tonne(s)
unconfined compressive strength

US

United States

USC

Unified soil classification

VCR

vertical crater retreat

vol %

percent by volume

wt%
y

percent by weight
year

ASTM

HQ
ICP
ICP-AES
ICP-MS
in
kg

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 1

REPORTING CODES
(NI 43-101)
(JORC)
(SEC)
Reference for Mineral Reserves and Resources

Section 1 Reporting Codes (NI 43-101, JORC, SEC)


Edition 1 November, 2002

CANADA NATIONAL INSTRUMENT 43-101

Reference for Mineral Reserves and Resources

Section 1 Reporting Codes (NI 43-101, JORC, SEC)


Edition 1 November, 2002

NATIONAL INSTRUMENT 43-101


STANDARDS OF DISCLOSURE FOR MINERAL PROJECTS
TABLE OF CONTENTS
PART 1
1.1
1.2
1.3
1.4
1.5

APPLICATION, DEFINITIONS AND INTERPRETATION


Application
Definitions
Mineral Resource
Mineral Reserve
Interpretation

PART 2
2.1
2.2
2.3
2.4

REQUIREMENTS APPLICABLE TO ALL DISCLOSURE


Requirements Applicable to All Disclosure
All Disclosure of Mineral Resources or Mineral Reserves
Prohibited Disclosure
Disclosure of Historical Estimates

PART 3
3.1
3.2
3.3

ADDITIONAL REQUIREMENTS FOR WRITTEN DISCLOSURE


Written Disclosure to Include Name of Qualified Person
Written Disclosure to Include Data Verification
Requirements Applicable to Written Disclosure of Exploration
Information
Requirements Applicable to Written Disclosure of Mineral Resources
and Mineral Reserves
Exception for Written Disclosure Already Filed

3.4
3.5
PART 4
4.1
4.2
4.3

OBLIGATION TO FILE A TECHNICAL REPORT


Obligation to File a Technical Report Upon Becoming a Reporting
Issuer
Obligation to File a Technical Report in Connection with Certain
Written Disclosure Concerning Mineral Projects on Material Properties
Required Form of Technical Report

PART 5
5.1
5.2
5.3
PART 6
6.1
6.2
6.3

AUTHOR OF TECHNICAL REPORT


Prepared by a Qualified Person
Execution of Technical Report
Independent Technical Report
PREPARATION OF TECHNICAL REPORT
Nature of the Technical Report
Personal Inspection
Maintenance of Records

PART 7

USE OF FOREIGN CODE

-ii7.1
PART 8
8.1
8.2
8.3

Use of Foreign Code


CERTIFICATES AND CONSENTS OF QUALIFIED PERSONS FOR
TECHNICAL REPORTS
Certificates of Qualified Persons
Addressed to Issuer
Consents of Qualified Persons

PART 9
9.1

EXEMPTION
Exemption

PART 10
10.1

EFFECTIVE DATE
Effective Date

NATIONAL INSTRUMENT 43-101


STANDARDS OF DISCLOSURE FOR MINERAL PROJECTS

PART 1.

APPLICATION, DEFINITIONS AND INTERPRETATION

1.1

Application - This Instrument applies to all oral statements and written disclosure
of scientific or technical information, including disclosure of a mineral resource or
mineral reserve, made by or on behalf of an issuer in respect of a mineral project
of the issuer.

1.2

Definitions - In this Instrument


"adjacent property" means a property
(a)

in which the issuer does not have an interest;

(b)

that has a boundary reasonably proximate to the closest boundary of the


property being reported on; and

(c)

that has geological characteristics similar to those of the property being


reported on;

"data verification" means the process of confirming that data has been generated
with proper procedures, has been accurately transcribed from the original source
and is suitable to be used;
"development property" means a property that is being prepared for mineral
production and for which economic viability has been demonstrated by a feasibility
study;
"disclosure" means any oral statement or written disclosure made by or on behalf
of an issuer and intended to be, or reasonably likely to be, made available to the
public in a Canadian jurisdiction, whether or not filed under securities legislation,
but does not include written disclosure that is made available to the public only by
reason of having been filed with a government or agency of government pursuant
to a requirement of law other than securities legislation;
"disclosure document" means an annual information form, prospectus, material
change report or annual financial statement filed with a regulator pursuant to a
requirement of securities legislation;

-2"exploration information" means geological, geophysical, geochemical, sampling,


drilling, analytical testing, assaying, mineralogical, metallurgical and other similar
information concerning a particular property that is derived from activities
undertaken to locate, investigate, define or delineate a mineral prospect or mineral
deposit;
"feasibility study" means a comprehensive study of a deposit in which all
geological, engineering, operating, economic and other relevant factors are
considered in sufficient detail that it could reasonably serve as the basis for a final
decision by a financial institution to finance the development of the deposit for
mineral production;
"IMM system" means the classification system and definitions for mineral resources
and mineral reserves approved from time to time by The Institution of Mining and
Metallurgy in the United Kingdom;
"JORC Code" means the Australasian Code for Reporting of Mineral Resources
and Ore Reserves prepared by the Joint Ore Reserves Committee of the
Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Mineral Council of Australia as amended or supplemented;
"mineral project" means any exploration, development or production activity in
respect of natural, solid, inorganic or fossilized organic, material including base and
precious metals, coal and industrial minerals;
"preliminary assessment" means a preliminary assessment permitted to be
disclosed pursuant to subsection 2.3(3);
"preliminary feasibility study" and "pre-feasibility study" each mean a
comprehensive study of the viability of a mineral project that has advanced to a
stage where the mining method, in the case of underground mining, or the pit
configuration, in the case of an open pit, has been established, and which, if an
effective method of mineral processing has been determined, includes a financial
analysis based on reasonable assumptions of technical, engineering, operating,
economic factors and the evaluation of other relevant factors which are sufficient
for a qualified person, acting reasonably, to determine if all or part of the mineral
resource may be classified as a mineral reserve;
"producing issuer" means an issuer the annual audited financial statements of which
disclose

-3(a)

gross revenues, derived from mining operations, of at least $30 million for
the issuer's most recently completed financial year; and

(b)

gross revenues, derived from mining operations, of at least $90 million in


the aggregate for the issuer's three most recently completed financial
years;

"professional association" means a self-regulatory organization of engineers,


geoscientists or both engineers and geoscientists that
(a)

has been given authority or recognition by statute;

(b)

admits members primarily on the basis of their academic qualifications and


experience;

(c)

requires compliance with the professional standards of competence and


ethics established by the organization; and

(d)

has disciplinary powers, including the power to suspend or expel a


member;

and until February 1, 2002 includes an association of geoscientists in Ontario and


until February 1, 2003 includes an association of geoscientists in a Canadian
jurisdiction other than Ontario that does not have a statutorily recognized selfregulatory association;
"qualified person" means an individual who
(a)

is an engineer or geoscientist with at least five years of experience in


mineral exploration, mine development or operation or mineral project
assessment, or any combination of these;

(b)

has experience relevant to the subject matter of the mineral project and the
technical report; and

(c)

is a member in good standing of a professional association;

"quantity" means either tonnage or volume, depending on which term is the


standard in the mining industry for the type of mineral;

-4"technical report" means a report prepared, filed and certified in accordance with
this Instrument and Form 43-101F1 Technical Report;
"USGS Circular 831" means the circular published by the United States Bureau
of Mines/United States Geological Survey entitled "Principles of a
Resource/Reserve Classification for Minerals", as amended or supplemented; and
"written disclosure" includes any writing, picture, map or other printed
representation whether produced, stored or disseminated on paper or
electronically.
1.3

Mineral Resource - In this Instrument, the terms "mineral resource", "inferred


mineral resource", "indicated mineral resource" and "measured mineral resource"
have the meanings ascribed to those terms by the Canadian Institute of Mining,
Metallurgy and Petroleum, as the CIM Standards on Mineral Resources and
Reserves Definitions and Guidelines adopted by CIM Council on August 20,
2000, as those definitions may be amended from time to time by the Canadian
Institute of Mining, Metallurgy and Petroleum.

1.4

Mineral Reserve - In this Instrument, the terms "mineral reserve", "probable


mineral reserve" and "proven mineral reserve" have the meanings ascribed to those
terms by the Canadian Institute of Mining, Metallurgy and Petroleum, as the CIM
Standards on Mineral Resources and Reserves Definitions and Guidelines adopted
by CIM Council on August 20, 2000, as those definitions may be amended from
time to time by the Canadian Institute of Mining, Metallurgy and Petroleum.

1.5

Interpretation
(1)

(2)

In this Instrument, a person or company is considered to be an affiliated


entity of another person or company if
(a)

one is a subsidiary of the other,

(b)

both are subsidiaries of the same person or company, or

(c)

each is controlled by the same person or company.

In this Instrument, a person or company is considered to be controlled by


a second person or company if
(a)

in the case of a company,

-5(i)

voting securities of the company carrying 50 percent or


more of the votes for the election of directors are held,
otherwise than by way of security only, by or for the
benefit of the second person or company; and

(ii) the votes carried by such securities entitle the second person
or company to elect a majority of the directors of the
company;

(3)

(b)

in the case of a partnership, other than a limited partnership, the


second person or company holds an interest of 50 percent or
more in the partnership; or

(c)

in the case of a limited partnership, the general partner is the


second person or company.

In this Instrument, a person or company is considered to be a subsidiary


entity of a second person or company, if
(a)

the person or company is controlled by


(i)

the second person or company, or

(ii) the second person or company and one or more other


persons or companies, each of which is controlled by the
second person or company, or
(iii) one or more other persons or companies, each of which is
controlled by the second person or company; or
(b)

(4)

the person or company is a subsidiary entity of a person or


company that is itself a subsidiary entity of the second person or
company.

In this Instrument, a qualified person involved in the preparation of a


technical report is not considered to be independent of the issuer in
respect of the technical report, if
(a)

the qualified person, or any affiliated entity of the qualified person,


is, or by reason of an agreement, arrangement or understanding

-6expects to become, an insider, associate, affiliated entity or


employee of
(i)

the issuer,

(ii) an insider of the issuer, or


(iii) an affiliated entity of the issuer;
(b)

the qualified person, or any affiliated entity of the qualified person,


is, or by reason of an agreement, arrangement or understanding
expects to become, a partner of any person or company referred
to in paragraph (a);

(c)

the qualified person, or any affiliated entity of the qualified person,


owns, or by reason of an agreement, arrangement or
understanding expects to receive, any securities of the issuer or of
an affiliated entity of the issuer or an ownership or royalty interest
in the property that is the subject of the technical report;

(d)

the qualified person, or any affiliated entity of the qualified person,


has received the majority of his or her income in the three years
preceding the date of the technical report from one or more of the
issuer and insiders and affiliated entities of the issuer; or

(e)

the qualified person, or any affiliated entity of the qualified person,


(i)

is, or by reason of an agreement, arrangement or


understanding expects to become, an insider, affiliate or
partner of the person or company which has an
ownership or royalty interest in a property which has a
boundary within two kilometres of the closest boundary
of the property being reported on; or

(ii) has, or by reason of an agreement, arrangement or


understanding expects to obtain, an ownership or royalty
interest in a property which has a boundary within two
kilometres of the closest boundary of the property being
reported on.

-7PART 2.

REQUIREMENTS APPLICABLE TO ALL DISCLOSURE

2.1

Requirements Applicable to All Disclosure - An issuer shall ensure that all


disclosure of a scientific or technical nature, including disclosure of a mineral
resource or mineral reserve, concerning mineral projects on a property material
to the issuer is based upon a technical report or other information prepared by or
under the supervision of a qualified person.

2.2

All Disclosure of Mineral Resources or Mineral Reserves - An issuer shall


ensure that any disclosure of a mineral resource or mineral reserve, including
disclosure in a technical report filed by an issuer

2.3

(a)

utilizes only the applicable mineral resource and mineral reserve


categories set out in sections 1.3 and 1.4;

(b)

reports each category of mineral resources and mineral reserves


separately, and if both mineral resources and mineral reserves are
disclosed, states the extent, if any, to which mineral reserves are
included in total mineral resources; and

(c)

does not add inferred mineral resources to the other categories of


mineral resources.

Prohibited Disclosure
(1)

(2)

An issuer shall not make any disclosure of


(a)

quantity or grade of a deposit which has not been categorized as


an inferred mineral resource, an indicated mineral resource, a
measured mineral resource, a probable mineral reserve or a
proven mineral reserve, or

(b)

results of an economic evaluation which uses inferred mineral


resources.

Despite paragraph (1)(a), an issuer may disclose in writing the potential


quantity and grade, expressed as ranges, of a possible mineral deposit that
is to be the target of further exploration, provided that the disclosure
includes

-8-

(3)

(a)

a proximate statement that the potential quantity and grade is


conceptual in nature, that there has been insufficient exploration to
define a mineral resource on the property and that it is uncertain
if further exploration will result in discovery of a mineral resource
on the property, and

(b)

the basis on which the disclosed potential quantity and grade has
been determined.

Despite paragraph (1)(b), an issuer may disclose a preliminary assessment


that includes an economic evaluation which uses inferred mineral
resources, provided
(a)

the preliminary assessment is a material change in the affairs of the


issuer or a material fact;

(b)

the disclosure includes


(i) a proximate statement that the preliminary assessment is
preliminary in nature, that it includes inferred mineral
resources that are considered too speculative geologically to
have the economic considerations applied to them that would
enable them to be categorized as mineral reserves, and there
is no certainty that the preliminary assessment will be realized,
and
(ii) the basis for the preliminary assessment and any qualifications
and assumptions made by the qualified person; and

(c)

(4)

in Ontario, if the issuer is a reporting issuer in Ontario, the issuer


shall deliver to the regulator in Ontario the disclosure it proposes
to make together with the preliminary assessment and the
technical report required pursuant to section 4.2 at least five
business days prior to making the disclosure and the regulator in
Ontario shall not have advised the issuer that it objects to the
disclosure.

An issuer shall not use the terms preliminary feasibility study, prefeasibility study or feasibility study when referring to a study unless the

-9study satisfies the criteria set out in the definitions of the applicable terms
in section 1.2.
2.4

Disclosure of Historical Estimates - Despite section 2.2 an issuer may disclose


an estimate of mineral resources or mineral reserves made before this Instrument
came into force if
(a)

the estimate is an estimate of mineral resources or mineral


reserves prepared by or on behalf of a person or company other
than the issuer, or

(b)

the estimate accompanies disclosure of an estimate of mineral


resources and mineral reserves made in accordance with section
2.2

and provided that the disclosure:


(i) identifies the source of the historical estimate;
(ii) confirms that the historical estimate is relevant;
(iii) comments on the reliability of the historical estimate;
(iv)

states whether the historical estimate uses categories


other than the ones stipulated in sections 1.3 and 1.4 and,
if so, includes an explanation of the differences; and

(v) includes any more recent estimates or data available to the


issuer.

PART 3.

ADDITIONAL REQUIREMENTS FOR WRITTEN DISCLOSURE

3.1

Written Disclosure to Include Name of Qualified Person - An issuer shall


ensure that all written disclosure of a scientific or technical nature, other than a
news release, concerning a mineral project on a property material to the issuer
identifies and discloses the relationship to the issuer of the qualified person who
prepared or supervised the preparation of the technical report or other information
that forms the basis for the written disclosure.

- 10 3.2

3.3

Written Disclosure to Include Data Verification - An issuer shall ensure that


all written disclosure of a scientific or technical nature concerning mineral projects
on a property material to the issuer:
(a)

states whether a qualified person has verified the data disclosed,


including sampling, analytical and test data underlying the
information or opinions contained in the written disclosure;

(b)

describes the nature of, and any limitations on, the verification of
data disclosed; and

(c)

explains any failure to verify the data disclosed.

Requirements Applicable to Written Disclosure of Exploration Information


(1)

(2)

An issuer shall ensure that all written disclosure containing scientific or


technical exploration information concerning a property material to the
issuer includes:
(a)

to the extent not previously disclosed in writing and filed by the


issuer, the results, or a summary of the material results, of surveys
and investigations regarding the property;

(b)

a summary of the interpretation of the exploration information to


the extent that such interpretation has not been previously
disclosed in writing and filed by the issuer; and

(c)

a description of the quality assurance program and quality control


measures applied during the execution of the work being reported
on.

An issuer shall ensure that all written disclosure containing sample or


analytical or testing results on a property material to the issuer includes
(a)

to the extent not previously disclosed in writing and filed by the


issuer, a summary description of the geology, mineral occurrences
and nature of mineralization found;

(b)

to the extent not previously disclosed in writing and filed by the


issuer, a summary description of rock types, geological controls
and widths of mineralized zones, and the identification of any

- 11 significantly higher grade intervals within a lower grade


intersection;

3.4

(c)

the location, number, type, nature and spacing or density of the


samples collected and the location and dimensions of the area
sampled;

(d)

identification of any drilling, sampling, recovery or other factors


that could materially affect the accuracy or reliability of the data
referred to in this subsection;

(e)

a summary description of the type of analytical or testing


procedures utilized, sample size, the name and location of each
analytical or testing laboratory used, the certification of each
laboratory, if known to the issuer, and any relationship of the
laboratory to the issuer; and

(f)

a listing of the lengths of individual samples or sample composites


with analytical values, widths and, to the extent known to the
issuer, the true widths of the mineralized zone.

Requirements Applicable to Written Disclosure of Mineral Resources and


Mineral Reserves - An issuer shall ensure that all written disclosure of mineral
resources or mineral reserves on a property material to the issuer includes:
(a)

the effective date of each estimate of mineral resources and


mineral reserves;

(b)

details of quantity and grade or quality of each category of mineral


resources and mineral reserves;

(c)

details of the key assumptions, parameters and methods used to


estimate the mineral resources and mineral reserves;

(d)

a general discussion of the extent to which the estimate of mineral


resources and mineral reserves may be materially affected by any
known environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues; and

(e)

a statement that mineral resources which are not mineral reserves


do not have demonstrated economic viability.

- 12 3.5

Exception for Written Disclosure Already Filed - The requirements of


sections 3.3 and 3.4 are satisfied by reference, in written disclosure, to a
previously filed disclosure document that complies with those requirements.

PART 4.

OBLIGATION TO FILE A TECHNICAL REPORT

4.1

Obligation to File a Technical Report Upon Becoming a Reporting Issuer

4.2

(1)

Upon first becoming a reporting issuer in a Canadian jurisdiction an issuer


shall file with the regulator in that Canadian jurisdiction a current technical
report for each property material to the issuer.

(2)

An issuer may satisfy the requirement of subsection (1) by filing a technical


report or a report prepared and filed in accordance with National Policy
Statement No. 2-A before February 1, 2001 that it has previously filed in
another Canadian jurisdiction in which it is a reporting issuer, amended or
supplemented, if necessary, to reflect material changes in the information
contained in the technical report since the date of filing in the other
Canadian jurisdiction.

Obligation to File a Technical Report in Connection with Certain Written


Disclosure Concerning Mineral Projects on Material Properties
(1)

An issuer shall file a current technical report to support information in the


following documents filed or made available to the public in a Canadian
jurisdiction describing mineral projects on a property material to the issuer:
1.

A preliminary prospectus, other than a preliminary short form


prospectus filed in accordance with National Instrument 44-101.

2.

A preliminary short form prospectus filed in accordance with


National Instrument 44-101 that includes material information
concerning mining projects on material properties not contained
in
(a)

a disclosure document filed before February 1, 2001;

(b)

a previously filed technical report; or

- 13 (c)

a report prepared in accordance with National Policy


Statement No. 2-A and filed with a regulator before
February 1, 2001.

3.

An information or proxy circular concerning a direct or indirect


acquisition of a mineral property, including an acquisition of
control of a person or company with an interest in the property,
that upon completion of the acquisition would be material to the
issuer if the consideration includes securities of the issuer or the
person or company which continues to hold an interest in the
property upon completion of the acquisition.

4.

An offering memorandum.

5.

A rights offering circular.

6.

An annual information form or annual report that includes material


information concerning mining projects on material properties not
contained in
(a)

a disclosure document filed before February 1, 2001;

(b)

a previously filed technical report; or

(c)

a report prepared in accordance with National Policy


Statement No. 2-A and filed with a regulator before
February 1, 2001.

7.

A valuation required to be prepared and filed under securities


legislation.

8.

A directors' circular that discloses for the first time a preliminary


assessment or mineral resources or mineral reserves on a property
material to the issuer that constitutes a material change in respect
of the affairs of the issuer, or discloses any change in a preliminary
assessment or in mineral resources or mineral reserves, from the
most recently filed technical report of the issuer, that constitutes
a material change in respect of the affairs of the issuer.

9.

A take-over bid circular that discloses a preliminary assessment


or mineral resources or mineral reserves on a property material to

- 14 the offeror if securities of the offeror are being offered in exchange


on the take-over bid.
10.

Any written disclosure, made other than in a document referred


to in paragraphs 1 to 9 above, which is either
(i)

first time disclosure of a preliminary assessment or mineral


resources or mineral reserves on a property material to
the issuer that constitutes a material change in respect of
the affairs of the issuer; or

(ii) disclosure of any change in a preliminary assessment or in


mineral resources and mineral reserves from the most recently
filed technical report, that constitutes a material change in
respect of the affairs of the issuer.
(2)

If there has been a material change to the information in the technical


report filed under paragraph 1 or 2 of subsection (1) before the filing of
the final version of a prospectus or short form prospectus, the issuer shall
file an updated technical report or an addendum to the technical report
with the final version of the prospectus or short form prospectus.

(3)

Subject to subsections (4), (5), and (6), the technical report required to
be filed under subsection (1) shall be filed not later than the time of the
filing of the document listed in subsection (1) that it supports.

(4)

Despite subsection (3), a technical report concerning mineral reserves and


mineral resources that supports disclosure described in paragraph 10 of
subsection (1) shall

(5)

(a)

be filed not later than 30 days after the disclosure; and

(b)

if filed subsequent to the disclosure, be accompanied by a


contemporaneous disclosure that reconciles any material
differences between the technical report filed and the previous
disclosure in connection with which the technical report was
prepared.

Despite subsection (3), if a property referred to in a document described


in paragraph 6 of subsection (1) first becomes material to the issuer less
than 30 days before the filing deadline for the document, the issuer shall

- 15 file the technical report required by subsection (1) within 30 days of the
date that the property first became material to the issuer.
(6)

Despite subsection (3), a technical report that supports a directors'


circular shall be filed not less than 3 business days prior to the expiry of
the take-over bid.

4.3

Required Form of Technical Report - A technical report that is required to be


filed under this Part shall be in accordance with Form 43-101F1.

PART 5.

AUTHOR OF TECHNICAL REPORT

5.1

Prepared by a Qualified Person - A technical report shall be prepared by or


under the supervision of one or more qualified persons.

5.2

Execution of Technical Report - A technical report shall be dated, signed and,


if the qualified person has a seal, sealed, by the qualified person who prepared it
or supervised its preparation, or if such an individual is an employee, officer,
director or associate of a person or company the principal business of which is the
provision of engineering or geoscientific services, by that person or company.

5.3

Independent Technical Report


(1)

Subject to subsection (2), a technical report required under any of the


following provisions of this Instrument shall be prepared by a qualified
person that is, at the date of the technical report, independent of the issuer:
1.

First-time Reporting Issuer - Subsection 4.1(1)

2.

Long Form Prospectus and Valuation - Paragraphs 4.2(1)l


and 7

3.

Other - Paragraphs 4.2(1)2, 3, 4, 5, 6, 8, 9 and 10 if the


document discloses a preliminary assessment, or mineral
resources or mineral reserves on a property material to the issuer
for the first time, or discloses a 100 percent or greater change,
from the most recently filed technical report prepared by a
qualified person who is independent of the issuer, in mineral
resources or mineral reserves on a property material to the issuer

- 16 4.

Reporting Issuer in
an Additional Canadian Jurisdiction - Subsection 4.1(2)

(2)

A technical report required to be filed by a producing issuer under


paragraphs 3 and 4 of subsection (1) is not required to be prepared by an
independent qualified person.

(3)

A technical report required to be filed by an issuer that is or has


contracted to become a joint venture participant, concerning a property
which is or will be the subject of the joint venture's activities, is not
required to be prepared by an independent qualified person if the
qualified person preparing the report is an employee of, or retained by,
another participant in the joint venture that is a producing issuer.

PART 6

PREPARATION OF TECHNICAL REPORT

6.1

Nature of the Technical Report - A technical report shall be prepared on the


basis of all available factual data that is relevant to the disclosure which it supports.

6.2

Personal Inspection - At least one qualified person preparing or supervising the


preparation of the technical report shall inspect the property that is the subject of
the technical report.

6.3

Maintenance of Records - The issuer shall keep copies of assay and other
analytical certificates, drill logs and other information referenced in the technical
report or used as a basis for the technical report for 7 years.

PART 7

USE OF FOREIGN CODE

7.1

Use of Foreign Code


(1)

An issuer that is incorporated or organized in a foreign jurisdiction may


make disclosure and file a technical report that utilizes the mineral resource
and mineral reserve categories of the JORC Code, USGS Circular 831
or the IMM system provided that a reconciliation to the mineral resource
and mineral reserve categories set out in sections 1.3 and 1.4 is filed with
the technical report and certified by a qualified person. The reconciliation
shall address the confidence levels required for the categorization of
mineral resources and mineral reserves.

- 17 (2)

An issuer that is incorporated or organized under the laws of Canada or


a province or territory of Canada may make disclosure and file a technical
report that utilizes the mineral resource and mineral reserve categories of
the JORC Code, USGS Circular 831 or the IMM system for properties
located in a foreign jurisdiction, provided that a reconciliation to the
mineral resource and mineral reserve categories set out in sections 1.3 and
1.4, which reconciliation addresses the confidence levels required for the
categorization of mineral resources and mineral reserves, is certified by a
qualified person and is filed with the technical report.

PART 8

CERTIFICATES AND CONSENTS OF QUALIFIED PERSONS FOR


TECHNICAL REPORTS

8.1

Certificates of Qualified Persons


(1)

An issuer shall, when filing a technical report, also file a certificate of each
of the individuals who are qualified persons and who have been primarily
responsible for the technical report, or a portion of the technical report,
dated, signed and, if the signatory has a seal, sealed, by the signatory.

(2)

The certificate of each qualified person shall state


(a)

the name, address and occupation of the qualified person;

(b)

the qualified person's qualifications, including relevant experience,


the name of all professional associations to which the qualified
person belongs, and that the qualified person is a "qualified
person" for purposes of this Instrument;

(c)

the date and duration of the qualified person's most recent visits
to each applicable site;

(d)

the section or sections of the technical report for which the


qualified person is responsible;

(e)

that the qualified person is not aware of any material fact or


material change with respect to the subject matter of the technical
report which is not reflected in the technical report, the omission
to disclose which makes the technical report misleading;

- 18 (f)

if the qualified person is independent of the issuer applying the


tests set out in section 1.5;

(g)

what prior involvement, if any, the qualified person has had with
the property that is the subject of the technical report; and

(h)

that the qualified person has read this Instrument and Form 43101F1, and the technical report has been prepared in compliance
with this Instrument and Form 43-101F1.

8.2

Addressed to Issuer - All technical reports shall be addressed to the issuer.

8.3

Consents of Qualified Persons - All technical reports and addenda to technical


reports that are required by this Instrument to be filed shall
(a)

be accompanied by the written consent of the qualified person,


addressed to the securities regulatory authorities, consenting to the
filing of the technical report and to the written disclosure of the
technical report and of extracts from or a summary of the
technical report in the written disclosure being filed; and

(b)

be accompanied by a certificate confirming that the qualified


person has read the written disclosure being filed and does not
have any reason to believe that there are any misrepresentations
in the information derived from the technical report or that the
written disclosure contains any misrepresentation of the
information contained in the technical report.

PART 9

EXEMPTION

9.1

Exemption
(1)

The regulator or the securities regulatory authority may, on application,


grant an exemption from this Instrument, in whole or in part, subject to
such conditions or restrictions as may be imposed in the exemption in
response to an application.

(2)

Despite subsection (1), in Ontario, only the regulator may grant such an
exemption.

- 19 (3)

Despite subsection (1), in Alberta, only the regulator may grant such an
exemption.

PART 10

EFFECTIVE DATE

10.1

Effective Date - This Instrument shall come into force on February 1, 2001.

COMPANION POLICY 43-101CP


TO NATIONAL INSTRUMENT 43-101
STANDARDS OF DISCLOSURE FOR MINERAL PROJECTS
TABLE OF CONTENTS
PART 1

PURPOSE AND DEFINITIONS


1.1
Purpose
1.2
Evolving Industry Standards and Modifications to the
Instrument
1.3
Application of the Instrument
1.4
Mineral Resources and Mineral Reserves Definitions
1.5
Non-Metallic Mineral Deposits
1.6
Objective Standard of Reasonableness

PART 2

DISCLOSURE
2.1
Disclosure is the Responsibility of the Issuer
2.2
Use of Plain Language
2.3
Prohibited Disclosure
2.4
Materiality
2.5
Material Information not yet Confirmed by a Qualified
Person
2.6
Exception in Section 3.5 of the Instrument
2.7
Meaning of Current Technical Report
2.8
Exceptions from Requirement for Technical Report with
Annual Information Form, Annual Report and Preliminary
Short Form Prospectus if Information Previously
Disclosed

PART 3

AUTHOR OF THE TECHNICAL REPORT


3.1
Selection of Qualified Person
3.2
Qualified Person
3.3
Independence of Qualified Person

PART 4

PREPARATION OF TECHNICAL REPORT


4.1
"Best Practices" Guidelines

PART 5

USE OF INFORMATION
5.1
Use of Information

- ii PART 6

PERSONAL INSPECTION
6.1
Personal Inspection
6.2
Exemption from Personal Inspection Requirement
6.3
Responsibility of the Issuer

PART 7

REGULATORY REVIEW
7.1
Review

COMPANION POLICY 43-101CP


TO NATIONAL INSTRUMENT 43-101
STANDARDS OF DISCLOSURE FOR MINERAL PROJECTS

PART 1

PURPOSE AND DEFINITIONS

1.1

Purpose - This companion policy sets out the views of the Canadian Securities
Administrators (the "CSA") as to the manner in which certain provisions of
National Instrument 43-101 (the "Instrument") are to be interpreted and applied.

1.2

Evolving Industry Standards and Modifications to the Instrument - Mining


industry practice and professional standards are evolving in Canada and
internationally. The Canadian securities regulatory authorities will monitor
developments in these fields and will solicit and consider recommendations from
their staff and external advisers, from time to time, as to whether modifications to
the Instrument are appropriate.

1.3

Application of the Instrument - The Instrument does not apply to disclosure


concerning petroleum, natural gas, bituminous sands or shales, groundwater or
other substances that do not fall within the meaning of the term "mineral resource"
in section 1.3 of the Instrument. The Instrument establishes standards for all oral
statements and written disclosure of scientific and technical information regarding
mineral projects, including disclosure in news releases, prospectuses and annual
reports, and requires that the disclosure be based on a technical report or other
information prepared by or under the supervision of a qualified person. In the
circumstances set out in section 5.3 of the Instrument, the technical report that is
required to be filed must be prepared by a qualified person who is independent of
the issuer, the property and any adjacent property.

1.4

Mineral Resources and Mineral Reserves Definitions - The Instrument


incorporates by reference the definitions and categories of mineral resources and
mineral reserves as set out in the Canadian Institute of Mining, Metallurgy and
Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves
Definitions and Guidelines (the "CIM Standards") adopted by the CIM Council
on August 20, 2000. These definitions, together with guidance on their
interpretation and application prepared by the CIM, are reproduced in the
Appendix to this Companion Policy. Issuers, qualified persons and other market
participants are encouraged to consult the CIM Standards for guidance.
Any changes made by the CIM to these definitions in the future will automatically
be incorporated by reference into the Instrument.

-21.5

1.6

Non-Metallic Mineral Deposits - Issuers making disclosure regarding the


following commodities are encouraged to follow these additional guidelines:
(a)

Industrial Minerals - For an industrial mineral deposit to be classified


as a mineral resource, there should be recognition by the qualified person
preparing the quantity and quality estimate that there is a viable market for
the product or that a market can be reasonably developed. For an
industrial mineral deposit to be classified as a mineral reserve, the qualified
person preparing the estimate should be satisfied, following a thorough
review of specific and identifiable markets for the product, that there is, at
the date of the technical report, a viable market for the product and that
the product can be mined and sold at a profit.

(b)

Coal - Technical reports on coal resources and reserves should conform


to the definitions and guidelines of Paper 88-21 of the Geological Survey
of Canada: A Standardized Coal Resource/Reserve Reporting System for
Canada, as amended, supplemented or replaced; and

(c)

Diamonds - Technical reports on the resources and reserves of diamond


deposits should conform to the Guidelines for Reporting of Diamond
Exploration Results, Identified Mineral Resources and Ore Reserves,
published by the Association of Professional Engineers, Geologists and
Geophysicists of the Northwest Territories, as amended, supplemented or
replaced.

Objective Standard of Reasonableness


(a)

The Instrument requires the application of an objective standard of


reasonableness in determining such things as whether a statement
constitutes "disclosure" and is thereby subject to the requirements of the
Instrument. Where a determination turns on reasonableness, the test is an
objective, rather than subjective one in that it turns on what a person
acting reasonably would conclude. It is not sufficient for an officer of an
issuer or a qualified person to determine that he or she personally believes
the matter under consideration. The person must form an opinion as to
what a reasonable person would believe in the circumstances.
Formulating the definitions using an objective test rather than a subjective
test strengthens the basis upon which the regulator may object to a
person's application of the definition in particular circumstances.

-3(b)

The definition of "preliminary feasibility study" and "pre-feasibility study"


requires the application of an objective test. For a study to fall within the
definition, the considerations or assumptions underlying the study must be
reasonable and sufficient for a qualified person, acting reasonably, to
determine if the mineral resource may be classified as a mineral reserve.

PART 2

DISCLOSURE

2.1

Disclosure is the Responsibility of the Issuer - Primary responsibility for


public disclosure remains with the issuer and its directors and officers. The
qualified person is responsible for preparing the technical report and providing
scientific and technical advice in accordance with applicable professional
standards. The proper use, by or on behalf of the issuer, of the technical report
and other scientific and technical information provided by the qualified person is
the responsibility of the issuer and its directors and officers. The onus is on the
issuer and its directors and officers and, in the case of a document filed with a
regulator, each signatory of the document, to ensure that disclosure in the
document is consistent with the related technical report or advice. Issuers are
strongly urged to have the qualified person review disclosure that summarizes or
restates the technical report or the technical advice or opinion to ensure that the
disclosure accurately reflects the qualified person's work.

2.2

Use of Plain Language - Disclosure made by or on behalf of an issuer regarding


mineral projects on properties material to the issuer should be understandable.
Written disclosure should be presented in an easy to read format using clear and
unambiguous language. Wherever possible, data should be presented in table
format. The CSA recognize that the technical report required by the Instrument
is a document that does not lend itself well to a "plain language" format and
therefore urge issuers to consult the responsible qualified person when restating the
data and conclusions from a technical report in plain language for use in other
public disclosure.

2.3

Prohibited Disclosure
(1)

Paragraph 2.2(c) of the Instrument prohibits the addition of inferred


mineral resources to the other categories of mineral resources. Issuers are
cautioned not to show a sum of mineral resources, or to refer to an
aggregate number of mineral resources that includes inferred mineral

-4resources.
(2)

2.4

Issuers are reminded that any disclosure of a target of further exploration


pursuant to subsection 2.3(2) or a of preliminary assessment pursuant to
subsection 2.3(3) must be based on information prepared by or under the
supervision of a qualified person.

Materiality
(1)

Materiality should be determined in the context of the particular issuer's


overall business and financial condition taking into account quantitative and
qualitative factors. Materiality is a matter of judgment in the particular
circumstances and should be determined in relation to the significance of
the information to investors, analysts and other users of the disclosure.

(2)

In assessing materiality, issuers should refer to the definition of "material


fact" in securities legislation, which in most jurisdictions means a fact that
significantly affects or would reasonably be expected to have a significant
effect on the market price or value of the securities of the issuer.

(3)

Materiality of a property should be assessed in light of the extent of the


interest in the property held, or to be acquired, by the issuer. A small
interest in a sizeable property may, in the circumstances, not be material
to the issuer.

(4)

In assessing whether interests represented by multiple claims or other


documents of title constitute a single property for the purpose of the
Instrument, issuers should be guided by the reasonable understanding and
expectations of investors.

(5)

Subject to developments not reflected in the issuer's financial statements,


for purposes of the Instrument, a property will generally not be considered
material to an issuer if the book value of the property, as reflected in the
issuer's most recently filed financial statements or the value of the
consideration paid or required to be paid for the property, including
exploration expenditures required to be made during the next 12 months,
is less than 10 percent of the book value of the total of the issuer's mineral
properties and related property, plant and equipment.

-52.5

Material Information not yet Confirmed by a Qualified Person - Issuers are


reminded that they have an obligation under securities legislation to disclose
material facts and to make timely disclosure of material changes. The Canadian
securities regulatory authorities recognize that there may be circumstances in which
the issuer expects that certain information concerning a mineral project may be
material notwithstanding the fact that a qualified person has not prepared or
supervised the preparation of the information. In this situation the Canadian
securities regulatory authorities suggest that issuers file a confidential material
change report concerning this information while a qualified person reviews the
situation. Once a qualified person has confirmed the information, a the issuer may
issue a news release and the basis of confidentiality will end.

2.6

Exception in Section 3.5 of the Instrument - Section 3.5 of the Instrument


provides that the disclosure requirement of sections 3.3 and 3.4 of the Instrument
may be satisfied by referring to a previously filed document that includes the
required disclosure. Issuers relying on this exception are reminded that all
disclosure should provide sufficient information to permit market participants to
make informed investment decisions and should not present or omit information in
a manner that is misleading.

2.7

Meaning of Current Technical Report - In the view of the CSA, the "current
technical report" referred to in sections 4.2 and 4.3 of the Instrument is a technical
report that contains all information required under the Form 43-101F1 in respect
of the subject property as at the date on which the technical report is filed. A
technical report may constitute a current technical report, even if prepared
considerably before the filing date, if the information in the technical report remains
accurate and does not omit materially new information as at the date of filing.

2.8

Exceptions from Requirement for Technical Report with Annual


Information Form, Annual Report and Preliminary Short Form Prospectus
if Information Previously Disclosed - If an issuer has disclosed scientific and
technical information on a mineral property in a disclosure document (as defined
in section 1.2 of the Instrument), or in a technical report prepared in accordance
with National Policy No. 2-A filed before February 1, 2001, the issuer will not be
required to prepare and file a technical report with the issuer's annual information
form, annual report or preliminary short form prospectus, unless the annual
information form, annual report or preliminary short form prospectus contains new
and material scientific and technical information about that mineral property.

-6PART 3

AUTHOR OF THE TECHNICAL REPORT

3.1

Selection of Qualified Person - It is the responsibility of the issuer and its


directors and officers to appoint a qualified person with experience and
competence appropriate for the subject matter of the technical report.

3.2

Qualified Person - Section 2.1 of the Instrument requires that all disclosure be
based upon a technical report or other information prepared by or under the
supervision of a qualified person and section 5.1 of the Instrument provides that
a technical report must be prepared by or under the supervision of one or more
qualified persons. The Canadian securities regulatory authorities recognize that
certain individuals who currently provide technical expertise to issuers will not be
considered qualified persons for purposes of the Instrument. These individuals
may have the necessary experience and expertise but may lack the professional
accreditation because of differences in provincial registration requirements or for
other reasons. Application can be made by an issuer under section 9.1 of the
Instrument for an exemption from the requirement for involvement of a qualified
person and the acceptance of another person. The application should demonstrate
the person's competence and qualification to prepare the technical report or other
information in support of the disclosure despite the fact that he or she is not a
member of a professional association or otherwise does not meet the requirements
set out in the definition in the Instrument of qualified person.

3.3

Independence of Qualified Person


(1)

Paragraph 1.5(4)(c) of the Instrument provides that a qualified person is


not considered to be independent of the issuer if the qualified person, or
any affiliated entity of the qualified person, owns or by reason of an
agreement, arrangement or undertaking expects to receive any securities
of the issuer or an affiliated entity of the issuer or an interest in the property
that is the subject of the technical report. The Canadian securities
regulatory authorities recognize that issuers undergoing restructuring may
settle outstanding debt to a qualified person with securities. In these
circumstances, an issuer may apply for an exemption under section 9.1 of
the Instrument to preserve the independence of the qualified person with
respect to the issuer.

(2)

There may be circumstances in which the staff at the securities regulatory


authorities question the objectivity of the author of the technical report.
The issuer may be asked to provide further information, additional
disclosure or the opinion of another qualified person to address concerns

-7about possible bias or partiality on the part of the original author.

PART 4

PREPARATION OF TECHNICAL REPORT

4.1

"Best Practices" Guidelines - Issuers and authors shall follow the Mineral
Exploration "Best Practices" Guidelines prepared on the recommendation of the
TSE-OSC Mining Standards Task Force by a committee comprised of mining and
exploration industry professionals and regulators. These Guidelines were
published in June, 2000.

PART 5

USE OF INFORMATION

5.1

Use of Information - The Instrument requires that technical reports be prepared


and filed with Canadian securities regulatory authorities to support certain
disclosure of mineral exploration, development and production activities and
results in order to permit the public and analysts to have access to information that
will assist them in making investment decisions and recommendations. Persons
and companies, including registrants, who wish to make use of information
concerning mineral exploration, development and production activities and results
including mineral resource and mineral reserve estimates are encouraged to review
the technical reports that will be on the public file for the issuer and if they are
summarizing or referring to this information they are strongly encouraged to use the
applicable mineral resource and mineral reserve categories and terminology found
in the technical report.

PART 6

PERSONAL INSPECTION

6.1

Personal Inspection- Canadian securities regulatory authorities consider


personal inspection particularly important because it enables the qualified person
to become familiar with conditions on the property, to observe the geology and
mineralization, to verify the work done, and on that basis to design or review and
recommend to the issuer an appropriate exploration or development program. It
is the responsibility of the issuer to arrange its affairs so that a property inspection
can be carried out by a qualified person.

6.2

Exemption from Personal Inspection Requirement - There may be


circumstances in which it is not possible or beneficial for a qualified person to

-8inspect the property. In such instances the qualified person or the issuer should
apply in writing to the securities regulatory authority for relief, stating the reasons
why a personal inspection is considered impossible or not beneficial. It would
likely be a condition of any such relief that the technical report state that no
inspection was carried out by a qualified person and provide reasons.
6.3

Responsibility of the Issuer - The requirement set out in section 6.2 of the
Instrument sets a minimum standard for personal inspection. The issuer should
have property inspections conducted by one or more qualified persons as
appropriate, taking into account the work being carried out on the property and
the technical report being prepared by the qualified person or persons.

PART 7

REGULATORY REVIEW

7.1

Review
(1)

Disclosure and technical reports filed under the Instrument may be subject
to review by Canadian securities regulatory authorities.

(2)

An issuer that files a technical report that does not meet the requirements
of the Instrument will be in breach of securities legislation. The issuer may
be required to issue or file corrected disclosure, file a revised technical
report or file revised consents, and may be subject to other sanctions.

APPENDIX
TO
COMPANION POLICY 43-101CP

Canadian Institute of Mining, Metallurgy and Petroleum - Definitions


Adopted by CIM Council August 20, 2000

Mineral Resource
Mineral Resources are sub-divided, in order of increasing geological confidence, into
Inferred, Indicated and Measured categories. An Inferred Mineral Resource has a lower level
of confidence than that applied to an Indicated Mineral Resource. An Indicated Mineral
Resource has a higher level of confidence than an Inferred Mineral Resource but has a lower
level of confidence than a Measured Mineral Resource.
A Mineral Resource is a concentration or occurrence of natural, solid, inorganic or
fossilized organic material in or on the Earths crust in such form and quantity and of such
a grade or quality that it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a Mineral Resource are
known, estimated or interpreted from specific geological evidence and knowledge.
The term Mineral Resource covers mineralization and natural material of intrinsic economic
interest which has been identified and estimated through exploration and sampling and
within which Mineral Reserves may subsequently be defined by the consideration and
application of technical, economic, legal, environmental, socio-economic and governmental
factors. The phrase reasonable prospects for economic extraction implies a judgement by
the Qualified Person in respect of the technical and economic factors likely to influence the
prospect of economic extraction. A Mineral Resource is an inventory of mineralization that
under realistically assumed and justifiable technical and economic conditions, might become
economically extractable. These assumptions must be presented explicitly in both public and
technical reports.
Inferred Mineral Resource
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and
grade or quality can be estimated on the basis of geological evidence and limited sampling
and reasonably assumed, but not verified, geological and grade continuity. The estimate
is based on limited information and sampling gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill holes.

-2Due to the uncertainty which may attach to Inferred Mineral Resources, it cannot be
assumed that all or any part of an Inferred Mineral Resource will be upgraded to an
Indicated or Measured Mineral Resource as a result of continued exploration. Confidence
in the estimate is insufficient to allow the meaningful application of technical and economic
parameters or to enable an evaluation of economic viability worthy of public disclosure.
Inferred Mineral Resources must be excluded from estimates forming the basis of feasibility
or other economic studies.
Indicated Mineral Resource
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity,
grade or quality, densities, shape and physical characteristics, can be estimated with a
level of confidence sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely enough for geological and
grade continuity to be reasonably assumed.
Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person
when the nature, quality, quantity and distribution of data are such as to allow confident
interpretation of the geological framework and to reasonably assume the continuity of
mineralization. The Qualified Person must recognize the importance of the Indicated Mineral
Resource category to the advancement of the feasibility of the project. An Indicated Mineral
Resource estimate is of sufficient quality to support a Preliminary Feasibility Study which
can serve as the basis for major development decisions.
Measured Mineral Resource
A Measured Mineral Resource is that part of a Mineral Resource for which quantity,
grade or quality, densities, shape, physical characteristics are so well established that
they can be estimated with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and reliable
exploration, sampling and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill holes that are spaced
closely enough to confirm both geological and grade continuity.
Mineralization or other natural material of economic interest may be classified as a
Measured Mineral Resource by the Qualified Person when the nature, quality, quantity and
distribution of data are such that the tonnage and grade of the mineralization can be

-3estimated to within close limits and that variation from the estimate would not significantly
affect potential economic viability. This category requires a high level of confidence in, and
understanding of, the geology and controls of the mineral deposit.
Mineral Reserve
Mineral Reserves are sub-divided in order of increasing confidence into Probable Mineral
Reserves and Proven Mineral Reserves. A Probable Mineral Reserve has a lower level of
confidence than a Proven Mineral Reserve.
A Mineral Reserve is the economically mineable part of a Measured or Indicated
Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study
must include adequate information on mining, processing, metallurgical, economic and
other relevant factors that demonstrate, at the time of reporting, that economic extraction
can be justified. A Mineral Reserve includes diluting materials and allowances for losses
that may occur when the material is mined.
Mineral Reserves are those parts of Mineral Resources which, after the application of all
mining factors, result in an estimated tonnage and grade which, in the opinion of the
Qualified Person(s) making the estimates, is the basis of an economically viable project after
taking account of all relevant processing, metallurgical, economic, marketing, legal,
environment, socio-economic and government factors. Mineral Reserves are inclusive of
diluting material that will be mined in conjunction with the Mineral Reserves and delivered
to the treatment plant or equivalent facility. The term Mineral Reserve need not necessarily
signify that extraction facilities are in place or operative or that all governmental approvals
have been received. It does signify that there are reasonable expectations of such approvals.
Probable Mineral Reserve
A Probable Mineral Reserve is the economically mineable part of an Indicated, and in
some circumstances a Measured Mineral Resource demonstrated by at least a
Preliminary Feasibility Study. This Study must include adequate information on mining,
processing, metallurgical, economic, and other relevant factors that demonstrate, at the
time of reporting, that economic extraction can be justified.
Proven Mineral Reserve
A Proven Mineral Reserve is the economically mineable part of a Measured Mineral
Resource demonstrated by at least a Preliminary Feasibility Study. This Study must
include adequate information on mining, processing, metallurgical, economic, and other

-4relevant factors that demonstrate, at the time of reporting, that economic extraction is
justified.
Application of the Proven Mineral reserve category implies that the Qualified Person has
the highest degree of confidence in the estimate with the consequent expectation in the
minds of the readers of the report. The term should be restricted to that part of the deposit
where production planning is taking place and for which any variation in the estimate would
not significantly affect potential economic viability.

FORM 43-101F1
TECHNICAL REPORT
TABLE OF CONTENTS

CONTENTS OF THE TECHNICAL REPORT


Item 1:
Item 2:
Item 3:
Item 4:
Item 5:
Item 6:
Item 7:
Item 8:
Item 9:
Item 10:
Item 11:
Item 12:
Item 13:
Item 14:
Item 15:
Item 16:
Item 17:
Item 18:
Item 19:
Item 20:
Item 21:
Item 22:
Item 23:
Item 24:
Item 25:

Item 26:

Title Page
Table of Contents
Summary
Introduction and Terms of Reference
Disclaimer
Property Description and Location
Accessibility, Climate, Local Resources, Infrastructure and Physiography
History
Geological Setting
Deposit Types
Mineralization
Exploration
Drilling
Sampling Method and Approach
Sample Preparation, Analyses and Security
Data Verification
Adjacent Properties
Mineral Processing and Metallurgical Testing
Mineral Resource and Mineral Reserve Estimates
Other Relevant Data and Information
Interpretation and Conclusions
Recommendations
References
Date
Additional Requirements for Technical Reports
on Development Properties and Production
Properties
Illustrations

FORM 43-101F1
TECHNICAL REPORT
INSTRUCTIONS
(1)

The objective of the technical report is to provide scientific


and technical information concerning mineral exploration,
development and production activities on a mineral property
that is material to an issuer. This Form sets out specific
requirements for the preparation and contents of a technical
report. Item 25 of this Form includes additional requirements
for technical reports on development and production
properties.

(2)

Terms used and not defined in this Form that are defined or
interpreted in National Instrument 43-101 Standards of
Disclosure for Mineral Projects (the "Instrument") shall bear
that definition or interpretation. In particular, the terms
"mineral resource" and "mineral reserve" and the categories
of each are defined in the Instrument. In addition, a general
definition instrument has been adopted as National
Instrument 14-101 Definitions which contains definitions of
certain terms used in more than one national instrument.
Readers of this Form shall review both these national
instruments for defined terms.

(3)

The author preparing the technical report shall use the


headings of the Items in this Form. If unique or infrequently
used technical terms are required, clear and concise
explanations shall be included.

(4)

No disclosure need be given in respect of inapplicable items


and, unless otherwise required by this Form, negative
answers to items may be omitted. Disclosure included under
one heading is not required to be repeated under another
heading.

(5)

The technical report is not required to include the information


required in Items 6 through 11 of this Form to the extent that
the required information has been previously filed in a report
for the property being reported on, the previous report is
referred to in the technical report and there has not been any
change in the information.

-2CONTENTS OF THE TECHNICAL REPORT

Item 1:

Title Page - Include a title page setting out the title of the technical report, the
general location of the mineral project, the name(s) and the professional
designation(s) of the authors and the effective date of the technical report.

Item 2:

Table of Contents - Provide a table of contents listing the contents of the


technical report, including figures and tables.

Item 3:

Summary - Provide a summary which briefly describes the property, its location,
ownership, geology and mineralization, the exploration concept, the status of
exploration, development and operations and the author's conclusions and
recommendations.

Item 4:

Introduction and Terms of Reference - Include a description of


(a)

the terms of reference;

(b)

the purpose for which the technical report was prepared;

(c)

the sources of information and data contained in the technical report or


used in its preparation, with citations if applicable; and

(d)

the extent of field involvement of the qualified person.

Item 5:

Disclaimer - If the author of all or a portion of the technical report has relied on
a report, opinion or statement of legal or other experts who are not qualified
persons for information concerning legal, environmental, political or other issues
and factors relevant to the technical report, the author may include a disclaimer of
responsibility in which the author identifies the report, opinion or statement relied
upon, the maker of that report, opinion or statement, the extent of reliance and the
portions of the technical report to which the disclaimer applies.

Item 6:

Property Description and Location - To the extent applicable, with respect to


each property reported on, describe
(a)

the area of the property in hectares or other appropriate units;

(b)

Item7:

-3the location, reported by section, township, range mining division or


district, municipality, province, state, country and National Topographic
System designation or Universal Transverse Mercator (UTM) system, as
applicable, or by latitude and longitude;

(c)

the claim numbers or equivalent, whether they are patented or unpatented,


or the applicable characterization in the jurisdiction in which they are
situated, and whether the claims are contiguous;

(d)

the nature and extent of the issuer's title to, or interest in, the property
including surface rights, the obligations that must be met to retain the
property, and the expiration date of claims, licences or other property
tenure rights;

(e)

whether or not the property has been legally surveyed;

(f)

the location of all known mineralized zones, mineral resources, mineral


reserves and mine workings, existing tailing ponds, waste deposits and
important natural features and improvements, relative to the outside
property boundaries by showing the same on a map;

(g)

to the extent known, the terms of any royalties, back-in rights, payments
or other agreements and encumbrances to which the property is subject;

(h)

to the extent known, all environmental liabilities to which the property is


subject; and

(i)

to the extent known, the permits that must be acquired to conduct the
work proposed for the property, and if the permits have been obtained.

Accessibility, Climate, Local Resources, Infrastructure and Physiography With respect to each property reported on, describe
(a)

topography, elevation and vegetation;

(b)

the means of access to the property;

(c)

the proximity of the property to a population centre, and the nature of


transport;

(d)

to the extent relevant to the mineral project, the climate and the length of
the operating season; and

(e)

Item 8:

-4to the extent relevant, the sufficiency of surface rights for mining
operations, the availability and sources of power, water, mining personnel,
potential tailings storage areas, potential waste disposal areas, heap leach
pad areas and potential processing plant sites.

History - To the extent known, with respect to each property reported on,
describe
(a)

the prior ownership of the property and ownership changes;

(b)

the type, amount, quantity and results of exploration and/or development


work undertaken by the owners and any previous owners;

(c)

historical mineral resource and mineral reserve estimates, including the


reliability of the historical estimates and whether the estimates are in
accordance with the categories set out in sections 1.3 and 1.4 of the
Instrument; and

(d)

any production from the property.

INSTRUCTION:

If a reporting system other than the one stipulated by the Instrument


has been used, the author shall include an explanation of the
differences and reliability.

Item 9:

Geological Setting - Include a description of the regional, local and property


geology.

Item 10:

Deposit Types - Describe the mineral deposit type(s) being investigated or being
explored for and the geological model or concepts being applied in the
investigation and on the basis of which the exploration program is planned.

Item 11:

Mineralization - Describe the mineralized zones encountered on the property,


the surrounding rock types and relevant geological controls, detailing length, width,
depth and continuity, together with a description of the type, character and
distribution of the mineralization.

Item 12:

Exploration - Describe the nature and extent of all relevant exploration work
conducted by, or on behalf of, the issuer on each property being reported on,
including

(a)

-5results of surveys and investigations, and the procedures and parameters


relating to the surveys and investigations;

(b)

an interpretation of the exploration information;

(c)

a statement as to whether the surveys and investigations have been carried


out by the issuer or by a contractor and, if the latter, identifying the
contractor; and

(d)

a discussion of the reliability or uncertainty of the data obtained in the


program.

Item 13:

Drilling - Describe the type and extent of drilling including the procedures
followed and a summary and interpretation of all results. The relationship between
the sample length and the true thickness of the mineralization must be stated, if
known, and if the orientation of the mineralization is unknown, state this.

Item 14:

Sampling Method and Approach - Include

Item 15:

(a)

a description of sampling methods and details of location, number, type,


nature and spacing or density of samples collected, and the size of the area
covered;

(b)

identification of any drilling, sampling or recovery factors that could


materially impact the accuracy and reliability of the results;

(c)

a discussion of the sample quality and of whether the samples are


representative and of any factors that may have resulted in sample biases;

(d)

a description of rock types, geological controls, widths of mineralized


zones and other parameters used to establish the sampling interval and
identification of any significantly higher grade intervals within a lower grade
intersection;and

(e)

a list of individual samples or sample composites with values and estimated


true widths.

Sample Preparation, Analyses and Security - Describe sample preparation


methods and quality control measures employed prior to dispatch of samples to
an analytical or testing laboratory, the method or process of sample splitting and

-6reduction, and the security measures taken to ensure the validity and integrity of
samples taken, including

Item 16:

Item 17:

(a)

if any aspect of the sample preparation was conducted by an employee,


officer, director or associate of the issuer;

(b)

details regarding sample preparation, assaying and analytical procedures


used, including the sub-sample size, the name and location of the analytical
or testing laboratories and whether the laboratories are certified by any
standards association and the particulars of any certification;

(c)

a summary of the nature and extent of all quality control measures


employed and check assay and other check analytical and testing
procedures utilized, including the results and corrective actions taken; and

(d)

a statement of the author's opinion on the adequacy of sampling, sample


preparation, security and analytical procedures.

Data Verification - Include a discussion of


(a)

quality control measures and data verification procedures applied;

(b)

whether the author has verified the data referred to or relied upon,
referring to sampling and analytical data;

(c)

the nature of and any limitations on such verification; and

(d)

the reasons for any failure to verify the data.

Adjacent Properties - A technical report may include information concerning an


adjacent property if
(a)

such information was publicly disclosed by the owner or operator of the


adjacent property;

(b)

the source of the information and any relationship of the author of the
information on the adjacent property to the issuer is identified;

(c)

the technical report states that its author has been unable to verify the
information and, in bold face type, that the information is not necessarily
indicative of the mineralization on the property that is the subject of the
technical report;

(d)

(e)

-7the technical report clearly distinguishes between mineralization on the


adjacent property and mineralization on the property being reported on;
and
if any historical estimates of mineral resources and mineral reserves are
included in the technical report, they are disclosed in accordance with
section 2.4 of the Instrument.

Item 18:

Mineral Processing and Metallurgical Testing - Where mineral processing


and/or metallurgical testing analyses have been carried out, include the results of
testing and details of sample selection representativity and testing and analytical
procedures.

Item 19:

Mineral Resource and Mineral Reserve Estimates - Each technical report


on mineral resources and mineral reserves shall
(a)

use only the applicable mineral resource and mineral reserve categories set
out in sections 1.3 and 1.4 of the Instrument;

(b)

report each category of mineral resources and mineral reserves separately


and if both mineral resources and mineral reserves are disclosed, state the
extent, if any, to which mineral reserves are included in total mineral
resources;

(c)

not add inferred mineral resources to the other categories of mineral


resources;

(d)

disclose the name, qualifications and relationship, if any, to the issuer of the
qualified person who estimated mineral resources and mineral reserves;

(e)

include appropriate details of quantity and grade or quality for each


category of mineral resources and mineral reserves;

(f)

include details of the key assumptions, parameters and methods used to


estimate the mineral resources and mineral reserves;

(g)

include a general discussion on the extent to which the estimate of mineral


resources and mineral reserves may be materially affected by any known
environmental, permitting, legal, title, taxation, socio-economic, marketing,
political or other relevant issues;

(h)

-8identify the extent to which the estimates of mineral resources and mineral
reserves may be materially affected by mining, metallurgical, infrastructure
and other relevant factors;

(i)

use only indicated mineral resources, measured mineral resources,


probable mineral reserves and proven mineral reserves when referring to
mineral resources or mineral reserves in an economic evaluation that is
used in a preliminary feasibility study or a feasibility study of a mineral
project;

(j)

state the grade or quality, quantity and category of the mineral resources
and mineral reserves if the quantity of contained metal is reported; and

(k)

when the grade for a polymetallic mineral resource or mineral reserve is


reported as metal equivalent, report the individual grade of each metal,
and consider and report the recoveries, refinery costs and all other
relevant conversion factors in addition to metal prices and the date and
sources of such prices.

INSTRUCTIONS

Item 20:

(1)

The methods and procedures to be used in estimating mineral


resources and mineral reserves are the responsibility of the authors
preparing the estimate.

(2)

A statement of quantity and grade or quality is an estimate and shall


be rounded to reflect the fact that it is an approximation.

(3)

An issuer that is incorporated or organized in a foreign jurisdiction


may file a technical report that utilizes the mineral resource and
mineral reserve categories of the JORC Code, USGS Circular 831 or
IMM system provided that a reconciliation to the mineral resource
and mineral reserve categories referred to in sections 1.3 and 1.4 of
the Instrument is filed with the technical report and certified by the
author. The reconciliation shall also address the confidence levels
required for the categorizations of mineral resources and mineral
reserves.

Other Relevant Data and Information - Include any additional information or


explanation necessary to make the technical report understandable and not
misleading.

Item 21:

-9Interpretation and Conclusions - Include the results and reasonable


interpretations of all field surveys, analytical and testing data and other relevant
information. Discuss the adequacy of data density and the data reliability as well
as any areas of uncertainty. A technical report concerning exploration information
shall include the conclusions of the author. The author must discuss whether the
completed project met its original objectives.

Item 22:

Recommendations - If successive phases of work are recommended, each


phase must culminate in a decision point. The recommendations shall not apply to
more than two phases of work. The recommendations shall state whether
advancing to a subsequent phase is contingent on positive results in the previous
phase. Provide particulars of the recommended programs and a breakdown of
costs for each phase. A technical report that contains recommendations for
expenditures on exploration or development work on a property shall include a
statement by a qualified person that, in the qualified person's opinion, the character
of the property is of sufficient merit to justify the program recommended.

Item 23:

References - Include a detailed list of all references cited in the technical report.

Item 24:

Date - Include the effective date of the technical report on both the title page and
the page of the technical report that is signed. The date of signing must also be
included on the signature page.

Item 25:

Additional Requirements for Technical Reports on Development


Properties and Production Properties - Technical reports on development
properties and production properties shall also include
(a)

Mining Operations - information and assumptions concerning the mining


method, metallurgical processes and production forecast;

(b)

Recoverability - information concerning results of all test and operating


results relating to the recoverability of the valuable component or
commodity and amenability of the mineralization to the proposed
processing methods;

(c)

Markets - information concerning the markets for the issuer's production


and the nature and material terms of any agency relationships;

(d)

Contracts - a discussion of whether the terms of mining, concentrating,


smelting, refining, transportation, handling, sales and hedging and forward

- 10 sales contracts or arrangements, rates or charges are within market


parameters;

Item 26:

(e)

Environmental Considerations - a discussion of bond posting, remediation


and reclamation;

(f)

Taxes - a description of the nature and rates of taxes, royalties and other
government levies or interests applicable to the mineral project or to
production, and to revenues or income from the mineral project;

(g)

Capital and Operating Cost Estimates - capital and operating cost


estimates, with the major components being set out in tabular form;

(h)

Economic Analysis - an economic analysis with cash flow forecasts on an


annual basis using proven mineral reserves and probable mineral reserves
only, and sensitivity analyses with variants in metal prices, grade, capital
and operating costs;

(i)

Payback - a discussion of the payback period of capital with imputed or


actual interest;

(j)

Mine Life - a discussion of the expected mine life and exploration


potential.

Illustrations
(a)

Technical reports shall be illustrated by legible maps, plans and sections.


All technical reports shall be accompanied by a location or index map and
more detailed maps showing all important features described in the text.
In addition, technical reports shall include a compilation map outlining the
general geology of the property and areas of historical exploration. The
location of all known mineralization, anomalies, deposits, pit limits, plant
sites, tailings storage areas, waste disposal areas and all other significant
features shall be shown relative to property boundaries. Maps, drawings
and diagrams that have been created by the author, in whole or in part,
and that are based on the work that the author has done or supervised,
shall be signed and dated by the author. Where information from other
sources, either government or private, is used in preparing these maps or
diagrams, the source of the information shall be named.

(b)

If adjacent or nearby properties have an important bearing on the potential


of the property under consideration, their location and any mineralized

- 11 structures common to two or more such properties shall be shown on the


maps.
(c)

If the potential merit of a property is predicated on geophysical or


geochemical results, maps showing the results of surveys and their
interpretations shall be included in the technical report.

(d)

Maps shall include a scale in bar form and an arrow indicating North.
Information taken from government maps or from drawings of other
engineers or geoscientists shall be acknowledged on the map.

AUSTRALASIAN CODE FOR REPORTING


OF MINERAL RESOURCES AND ORE
RESERVES
(JORC)

Reference for Mineral Reserves and Resources

Section 1 Reporting Codes (NI 43-101, JORC, SEC)


Edition 1 November, 2002

19
9

9E

dit

Australasian Code for


Reporting of Mineral
Resources and Ore Reserves
(The JORC Code)

Prepared by the Joint Ore Reserves Committee of


The Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals
Council of Australia (JORC)

Effective September 1999

ion

THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

FOREWORD
1.

2.

The Australasian Code for Reporting of Mineral


Resources and Ore Reserves (the JORC Code
or the Code) sets out minimum standards,
recommendations and guidelines for Public
Reporting of exploration results, Mineral Resources
and Ore Reserves in Australasia. It has been drawn
up by the Joint Ore Reserves Committee of The
Australasian Institute of Mining and Metallurgy,
the Australian Institute of Geoscientists and the
Minerals Council of Australia. The Joint Ore Reserves
Committee was established in 1971 and published
a number of reports which made recommendations
on the classification and Public Reporting of Ore
Reserves prior to the first release of the JORC Code in
1989.
In this edition of the JORC Code, the guidelines,
which were previously separated from the Code,
have been placed after the respective Code clauses
to provide improved assistance and guidance to
readers. These guidelines are indented and are in a
different, smaller type face. They do not form part
of the Code but should be considered persuasive
when interpreting the Code. The same indented and
reduced type face formatting has been applied to
Appendix 1 The JORC Code and Australasian
Stock Exchanges, and to Table 1 Check List of
Assessment and Reporting Criteria to emphasise
that both these sections are guidelines, and that the
latter is not a mandatory list of assessment and
reporting criteria. Also in this edition of the Code,
the first or a particularly significant mention, after
Clause 2, of terms which are defined in the Code
have been marked with a superscript D10, and the
corresponding definitions have been highlighted
in bold type. For example, Competent PersonD10
means that this term is defined in Clause 10.

sufficient information, the presentation of which is


clear and unambiguous, to understand the report
and is not misled. Materiality requires that a
Public Report contains all the relevant information
which investors and their professional advisers
would reasonably require, and reasonably expect
to find in the report, for the purpose of making a
reasoned and balanced judgement regarding the
mineralisation being reported. Competence
requires that the Public Report is based on work
which is the responsibility of a suitably qualified
and experienced person who is subject to an
enforceable professional code of ethics.
5.

The Code is a required minimum standard


for Public Reporting. The committee also
recommends its adoption as a minimum
standard for other reporting. Reference in the
Code to a Public Report or Public Reporting is
to a report or reporting on exploration results,
Mineral Resources D20 or Ore Reserves D29 ,
prepared for the purpose of informing investors
or potential investors and their advisers. This
includes a report or reporting prepared to satisfy
regulatory requirements. Companies are
encouraged to provide information which is as
comprehensive as possible in their Public Reports.
Public Reports include, but are not limited to:
company Annual Reports, quarterly reports and
other reports to the Australian or New Zealand
Stock Exchanges or required by corporations law.
It is recommended that the Code apply to the
following reports if they have been prepared for
the purpose described in Clause 5: environmental
statements; Information Memoranda; Expert
Reports and technical papers in respect of reporting
on exploration results, Mineral Resources or Ore
Reserves.

3.

The Code has been adopted by The Australasian


Institute of Mining and Metallurgy and the Australian
Institute of Geoscientists and is therefore binding
on members of those organisations. It is supported
by the Minerals Council of Australia and the
Securities Institute of Australia as a contribution to
best practice. The Australian Stock Exchange and
New Zealand Stock Exchange listing rules each
incorporate the Code. See Appendix 1.

The term regulatory requirements as used in


Clause 5 is not intended to cover reports by
companies to government agencies which may be
required for State Government or Federal
Government inventory or planning purposes. If
reports prepared for such purposes subsequently
become available to the public, they would not
normally be regarded as Public Reports in terms
of the JORC Code (refer also to the guidelines to
Clauses 20 and 37).

4.

The main principles governing the operation and


application of the JORC Code are transparency,
materiality and competence. Transparency requires
that the reader of a Public ReportD5 is provided with

It is recognised that there may be situations where


a Competent PersonD10 prepares documentation for
internal company purposes or similar non-public
purposes that does not comply with the JORC

PAGE 2

Note: Code is in normal typeface, guidelines are in indented italics, definitions are in bold.

THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

Code. In such circumstances, the documentation


should include a statement that it does not comply
with the JORC Code. This will minimise the
likelihood of non-complying documentation being
used as a basis for Public Reports, since Clause 8
requires Public Reports to fairly reflect Mineral
Resource and/or Ore Reserve estimates and
supporting documentation prepared by a
Competent Person (refer to Clause 8, and also to
Appendix 1 in respect of stock exchange
requirements on Public Reporting).
While every effort has been made within the Code
and Guidelines to cover most situations likely to
be encountered in the Public Reporting of
exploration results, Mineral Resources and Ore
Reserves, there will inevitably be occasions when
doubt exists as to the appropriate procedure to
follow. In such cases, users of the Code and those

compiling reports under the Code should be


guided by its intent, which is to provide a
minimum standard for Public Reporting and to
ensure that such reporting contains all information
which investors and their professional advisers
would reasonably require, and reasonably expect
to find in the report, for the purpose of making a
reasoned and balanced judgement regarding the
mineralisation being reported.

6.

The Code is applicable to all solid minerals,


including diamonds, other gemstones and coal, for
which Public Reporting of exploration results,
Mineral Resources and Ore Reserves is required by
the Australian and New Zealand Stock Exchanges.

7.

The Joint Committee recognises that further review


of the Code will be required from time to time.

COMPETENCE AND RESPONSIBILITY


8.

A Public Report concerning a companys Mineral


Resources and/or Ore Reserves is the responsibility
of the company acting through its Board of Directors.
Any such report must be based on, and fairly reflect,
the Mineral Resource and/or Ore Reserve estimates
and supporting documentation prepared by a
Competent PersonD10 or Persons.
In compiling Mineral Resource and/or Ore Reserve
information in a Public Report, a company may need
to edit the documentation prepared by the Competent
Persons. Where such editing takes place, the
Competent Persons must give their consent in writing
to the company to the inclusion in the Public Report
of the matters based on their information in the form
and context in which it appears in the Public Report.
Refer to Appendix 1 for information on stock
exchange requirements to name the Competent
Person(s).

9.

Documentation detailing Mineral Resource and Ore


Reserve estimates from which a Public Report on
Mineral Resources and Ore Reserves is prepared,
must be prepared by or under the direction of, and
signed by, a Competent Person or Persons.

10. A Competent Person is a person who is a Member


or Fellow of The Australasian Institute of Mining
and Metallurgy and/or the Australian Institute of
Geoscientists with a minimum of five years
experience which is relevant to the style of
mineralisation and type of deposit under
consideration and to the activity which that person
is undertaking. If the Competent Person is

estimating, or supervising the estimation of


Mineral Resources, the relevant experience must
be in the estimation, assessment and evaluation
of Mineral Resources. If the Competent Person is
estimating, or supervising the estimation of Ore
Reserves, the relevant experience must be in the
estimation, assessment, evaluation and economic
extraction of Ore Reserves.
The key qualifier in the definition of a Competent
Person is the word relevant. Determination of
what constitutes relevant experience can be a
difficult area and common sense has to be
exercised. For example, in estimating Mineral
Resources for vein gold mineralisation, experience
in a high-nugget, vein-type mineralisation such as
tin, uranium etc. will probably be relevant whereas
experience in (say) massive base metal deposits
may not be. As a second example, for a person to
qualify as a Competent Person in the estimation of
Ore Reserves for alluvial gold deposits, he or she
would need to have considerable (probably at least
five years) experience in the evaluation and
economic extraction of this type of mineralisation,
due to the characteristics of gold in alluvial systems,
the particle sizing of the host sediment, and the
low grades involved. Experience with placer
deposits containing minerals other than gold may
not necessarily provide appropriate relevant
experience.
The key word relevant also means that it is not
always necessary for a person to have five years
experience in each and every type of deposit in
order to act as a Competent Person if that person
has relevant experience in other deposit types. For
example, a person with (say) 20 years experience

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

in Mineral Resource estimation in a variety of


metalliferous hard-rock deposit types may not
require five years specific experience in (say)
porphyry copper deposits in order to act as a
Competent Person. Relevant experience in the
other deposit types could count towards the
required experience in relation to porphyry copper
deposits.
In addition to experience in the style of
mineralisation, a Competent Person preparing or
taking responsibility for Mineral Resource estimates
should have sufficient experience in the sampling
and assaying techniques relevant to the deposit
under consideration to be aware of problems
which could affect the reliability of the data. Some
appreciation of extraction and processing
techniques applicable to that deposit type would
also be important.
As a general guide, persons being called upon to
act as Competent Persons should be clearly
satisfied in their own minds that they could face
their peers and demonstrate competence in the
commodity, type of deposit and situation under
consideration. If doubt exists, the person should
either seek opinions from other colleagues or
should decline to act as a Competent Person.
Estimation of Mineral Resources is often a team
effort (for example, involving one person or team
collecting the data and another person or team
preparing the Mineral Resource estimate). Within
this team, geologists usually occupy the pivotal
role. Estimation of Ore Reserves is almost always
a team effort involving a number of technical
disciplines, and within this team, mining engineers
usually occupy the pivotal role. Documentation
for a Mineral Resource or Ore Reserve estimate
must be compiled by, or under the supervision of,
a Competent Person or Persons, whether a
geologist, mining engineer or member of another
discipline. However, it is recommended that,
where there is a clear division of responsibilities
within a team, each Competent Person should
accept responsibility for his or her particular
contribution. For example, one Competent Person

could accept responsibility for the collection of


Mineral Resource data, another for the Mineral
Resource estimation process, another for the
mining study, and the project leader could accept
responsibility for the overall document. It is
important that the Competent Person accepting
overall responsibility for a Mineral Resource or Ore
Reserve estimate and supporting documentation
which has been prepared in whole or in part by
others is satisfied that the work of the other
contributors is acceptable.
If the Competent Person is a Member or Fellow of
The Australasian Institute of Mining and Metallurgy
(The AusIMM), he or she is answerable to The
AusIMM Ethics Committee if a complaint is made
in respect of his or her professional work. If the
Competent Person is a Member or Fellow of the
Australian Institute of Geoscientists (AIG), the
matter will be dealt with by the Ethics and
Standards Committee of the AIG Council, if a
complaint is made in respect of his or her
professional work.
When an Australian listed or New Zealand listed
company with overseas interests wishes to report
an overseas Mineral Resource or Ore Reserve
estimate prepared by a person who is not a member
of The AusIMM or of the AIG, it is necessary for
the company to nominate a Competent Person or
Persons to take responsibility for the Mineral
Resource or Ore Reserve estimate. The Competent
Person or Persons undertaking this activity should
appreciate that they are accepting full responsibility
for the estimate and supporting documentation
under ASX or NZSX listing rules and should not
treat the procedure merely as a rubber-stamping
exercise.

11. For Public Reports dealing with diamond or other


gemstone mineralisation, it is also a requirement of
this Code that, if a valuation of a parcel of diamonds or
gemstones is reported, the person(s) or organisations
valuing the parcel must be named in the report and
their professional valuation experience, competency
and independence stated.

REPORTING TERMINOLOGY
12. Public Reports dealing with Mineral Resources and/
or Ore Reserves must only use the terms set out in
Figure 1.
Figure 1 sets out the framework for classifying
tonnage and grade estimates so as to reflect
different levels of geological confidence and
different degrees of technical and economic
evaluation. Mineral Resources can be estimated
mainly by a geologist on the basis of geoscientific
PAGE 4

information with some input from other disciplines.


Ore Reserves, which are a modified sub-set of the
IndicatedD22 and Measured Mineral ResourcesD23
(shown within the dashed outline in Figure 1), require
consideration of those factors affecting extraction,
including mining, metallurgical, economic,
marketing, legal, environmental, social and
governmental factors, and should in most instances
be estimated with input from a range of disciplines.

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

In certain situations, Measured Mineral Resources


could convert to Probable Ore ReservesD30 because
of uncertainties associated with the modifying
factors which are taken into account in the
conversion from Mineral Resources to Ore Reserves.
This relationship is shown by the broken arrow in

Figure 1 (although the trend of the broken arrow


includes a vertical component, it does not, in this
instance, imply a reduction in the level of geological
knowledge or confidence). In such a situation these
modifying factors should be fully explained.
Refer also to the guidelines to Clause 32.

Figure 1. General Relationship between Exploration Results, Mineral Resources and Ore Reserves.

Exploration Results
Mineral Resources

Ore Reserves

Inferred
Increasing level
of geological
knowledge and
confidence

Indicated

Probable

Measured

Proved

Consideration of mining, metallurgical, economic, marketing,


legal, environmental, social and governmental factors
(the modifying factors)

REPORTING GENERAL
13. Public Reports concerning a companys Mineral
Resources or Ore Reserves should include
a description of the style and nature of
mineralisation.
14. A company must disclose relevant information
concerning the status and characteristics of a mineral
deposit which could materially influence the
economic value of that deposit. A company must

promptly report any material changes in its Mineral


Resources or Ore Reserves.
15. Companies must review and publicly report on their
Mineral Resources and Ore Reserves annually.
16. Throughout the Code, where appropriate, quality
may be substituted for grade and volume may be
substituted for tonnage.

REPORTING OF EXPLORATION RESULTS


17. A company may choose, or be required under stock
exchange listing rules, to report exploration results. If a
company reports exploration results in relation to
mineralisation not classified as a Mineral Resource or
an Ore Reserve, then estimates of tonnage and average
grade must not be assigned to the mineralisation.
Where descriptions of exploration targets or
exploration potential are given in Public Reports, any
tonnage/grade figures mentioned must be clearly
order-of-magnitude and conceptual in nature and
expressed so as not to misrepresent them as an

estimate of Mineral Resources or Ore Reserves.

18. Public Reports of exploration results relating to


mineralisation not classified as Mineral Resources or
Ore Reserves must contain sufficient information to
allow a considered and balanced judgement of the
significance of the results. This must include relevant
information such as sampling intervals and methods,
sample locations, assay data, laboratory analyses, data
aggregation methods plus information on any of the
other criteria listed in Table 1 that are material to an
assessment. The reporting of exploration sampling or

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

geophysical results must not be presented so as


to unreasonably imply that potentially economic
mineralisation has been discovered.
Table 1 is a check list and guideline to which those
preparing reports on exploration results, Mineral
Resources and Ore Reserves should refer. The
check list is not prescriptive and, as always,
relevance and materiality are overriding principles
which determine what information should be
publicly reported. Reporting of isolated assays
without placing them in perspective is unacceptable.

Reports of diamonds recovered from sampling


programs must specify the number and total
weight (in carats) of diamonds recovered. Details
of the type and size of samples which produced
the diamonds must also be specified including
the lower cut-off sieve size used in the recovery.
The weight of diamonds recovered may only be
omitted from the report when the diamonds are
less than 0.4 mm in size (ie. when the diamonds
recovered are microdiamonds).

19. Public Reports dealing with diamonds require the


following additions:

REPORTING OF MINERAL RESOURCES


20. A Mineral Resource is a concentration or
occurrence of material of intrinsic economic
interest in or on the Earths crust in such form and
quantity that there are reasonable prospects for
eventual economic extraction. The location,
quantity, grade, geological characteristics and
continuity of a Mineral Resource are known,
estimated or interpreted from specific geological
evidence and knowledge. Mineral Resources are
sub-divided, in order of increasing geological
confidence, into InferredD21, Indicated D22 and
MeasuredD23 categories.
Portions of a deposit that do not have reasonable
prospects for eventual economic extraction must not
be included in a Mineral Resource.
The term Mineral Resource covers mineralisation
which has been identified and estimated through
exploration and sampling and within which Ore
Reserves may be defined by the consideration and
application of technical, economic, legal,
environmental, social and governmental factors.
The term reasonable prospects for eventual
economic extraction implies a judgement (albeit
preliminary) by the Competent Person in respect
of the technical and economic factors likely to
influence the prospect of economic extraction,
including the approximate mining parameters. In
other words, a Mineral Resource is not an inventory
of all mineralisation drilled or sampled, regardless
of cut-off grade, likely mining dimensions,
location or continuity. It is a realistic inventory of
mineralisation which, under assumed and justifiable
technical and economic conditions, might, in whole
or in part, become economically extractable.
Interpretation of the word eventual in this context
may vary depending on the commodity or mineral

PAGE 6

involved. For example, for many coal, iron ore, bauxite


and other bulk minerals or commodities, it may be
reasonable to envisage eventual economic extraction
as covering time periods in excess of 50 years. However
for the majority of gold deposits, application of the
concept would normally be restricted to perhaps 20 to
30 years, and frequently to much shorter periods of time.
Certain reports (eg: coal inventory reports,
exploration reports to government and other similar
reports not intended primarily for providing
information for investment purposes) may require
full disclosure of all mineralisation, including some
material that does not have reasonable prospects
for eventual economic extraction. Such estimates
of mineralisation would not qualify as Mineral
Resources or Ore Reserves in terms of the JORC Code
(refer also to the guidelines to Clauses 5 and 37).
Where considered appropriate by the Competent
Person, Mineral Resource estimates may include
material below the selected cut-off grade to ensure
that the Mineral Resources comprise bodies of
mineralisation of adequate size and continuity to
properly consider the most appropriate approach
to mining. Documentation of Mineral Resource
estimates should clearly identify any such
inclusions, and Public Reports should include
commentary on the matter if considered material.

21. An Inferred Mineral Resource is that part of a


Mineral Resource for which tonnage, grade and
mineral content can be estimated with a low level
of confidence. It is inferred from geological
evidence and assumed but not verified geological
and/or grade continuity. It is based on information
gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings
and drill holes which may be limited or of uncertain
quality and reliability.

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

An Inferred Mineral Resource has a lower level of


confidence than that applying to an Indicated
Mineral Resource.
The category is intended to cover situations where
a mineral concentration or occurrence has been
identified and limited measurements and sampling
completed, but where the data are insufficient to
allow the geological and/or grade continuity to be
confidently interpreted. Due to the uncertainty
which may attach to some Inferred Mineral
Resources, it cannot be assumed that all or part of
an Inferred Mineral Resource will be upgraded to
an Indicated or Measured Mineral Resource as a
result of continued exploration. Confidence in the
estimate is usually not sufficient to allow the
appropriate application of technical and economic
parameters or to enable an evaluation of economic
viability. Caution should be exercised if this
category is considered in economic studies.

22. An Indicated Mineral Resource is that part of a


Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral
content can be estimated with a reasonable level
of confidence. It is based on exploration, sampling
and testing information gathered through
appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.
The locations are too widely or inappropriately
spaced to confirm geological and/or grade
continuity but are spaced closely enough for
continuity to be assumed.
An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral
Resource, but has a higher level of confidence than
that applying to an Inferred Mineral Resource.
Mineralisation may be classified as an Indicated
Mineral Resource when the nature, quality,
amount and distribution of data are such as
to allow confident interpretation of the
geological framework and to assume continuity of
mineralisation. Confidence in the estimate is
sufficient to allow the appropriate application
of technical and economic parameters and to
enable an evaluation of economic viability.

23. A Measured Mineral Resource is that part of a


Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral
content can be estimated with a high level of
confidence. It is based on detailed and reliable
exploration, sampling and testing information
gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings
and drill holes. The locations are spaced closely

enough to confirm geological and/or grade


continuity.
Mineralisation may be classified as a Measured
Mineral Resource when the nature, quality, amount
and distribution of data are such as to leave no
reasonable doubt, in the opinion of the Competent
Person determining the Mineral Resource, that the
tonnage and grade of the mineralisation can
be estimated to within close limits and that any
variation from the estimate would not
significantly affect potential economic viability.
This category requires a high level of confidence
in, and understanding of, the geology and controls
of the mineral deposit. Confidence in the estimate
is sufficient to allow the appropriate application
of technical and economic parameters and to
enable an evaluation of economic viability.

24. The choice of the appropriate category of Mineral


Resource depends upon the quantity, distribution
and quality of data available and the level of
confidence that attaches to those data. The
appropriate Mineral Resource category must be
determined by a Competent Person or Persons.
Mineral Resource classification is a matter for
skilled judgement and Competent Persons should
take into account those items in Table 1 which
relate to confidence in Mineral Resource estimation.
In deciding between Measured Mineral Resources
and Indicated Mineral Resources, Competent
Persons may find it useful to consider, in addition
to the phrases in the two definitions relating to
geological and grade continuity in Clauses 22 and
23, the phrase in the guideline to the definition for
Measured Mineral Resources: .... any variation
from the estimate would not significantly affect
potential economic viability.
In deciding between Indicated Mineral Resources
and Inferred Mineral Resources, Competent
Persons may wish to take into account, in addition
to the phrases in the two definitions in Clauses 21
and 22 relating to geological and grade continuity,
the guideline to the definition for Indicated Mineral
Resources: Confidence in the estimate is sufficient
to allow the appropriate application of technical
and economic parameters and to enable an
evaluation of economic viability, which contrasts
with the guideline to the definition for Inferred
Mineral Resources: Confidence in the estimate is
usually not sufficient to allow the appropriate
application of technical and economic parameters
or to enable an evaluation of economic viability.
Caution should be exercised if this category is
considered in economic studies.

25. Mineral Resource estimates are not precise


calculations, being dependent on the interpretation

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

of limited information on the location, shape and


continuity of the occurrence and on the available
sampling results. Reporting of tonnage and grade
figures should reflect the order of accuracy of the
estimate by rounding off to appropriately significant
figures and, in the case of Inferred Mineral
Resources, by qualification with terms such as
approximately.
In most situations, rounding to the second
significant figure should be sufficient. For example
10,863,000 tonnes at 8.23 per cent should be
stated as 11 million tonnes at 8.2 per cent. There
will be occasions, however, where rounding to the
first significant figure may be necessary in order
to convey properly the uncertainties in estimation.
This would usually be the case with Inferred
Mineral Resources.
To emphasise the imprecise nature of a Mineral
Resource or Ore Reserve estimate, the final result
should always be referred to as an estimate not a
calculation.

26. Public Reports of Mineral Resources must specify


one or more of the categories of Inferred, Indicated
and Measured. Categories must not be reported in
a combined form unless details for the individual
categories are also provided. Mineral Resources must
not be reported in terms of contained metal or
mineral content unless corresponding tonnages and
grades are also presented. Mineral Resources must
not be aggregated with Ore Reserves.
27. Table 1 provides, in a summary form, a list of the
main criteria which should be considered when
preparing reports on exploration results, Mineral
Resources and Ore Reserves. These criteria need not
be discussed in a Public Report unless they
materially affect estimation or classification of the
Mineral Resources.
Where diamond Mineral Resource grades are based
on the correlation of macrodiamond grade with the
grade of microdiamonds, this must be stated and
its reliability explained.
It is not necessary, when publicly reporting,
to comment on each item in Table 1, but it is

essential to discuss any matters which might


materially affect the readers understanding or
interpretation of the results or estimates being
reported. This is particularly important where
inadequate or uncertain data affect the reliability
of, or confidence in, a statement of exploration
results or an estimate of Mineral Resources and/or
Ore Reserves; for example, poor sample recovery,
poor repeatability of assay or laboratory results,
limited information on tonnage factors etc.
If there is doubt about what should be reported, it
is better to err on the side of providing too much
information rather than too little.
Mineral Resource or Ore Reserve estimates are
sometimes reported after adjustment by cutting of
high grades, or after the application of modifying
factors arising from reconciliation with mill data.
If any of the data are materially adjusted or
modified for the purpose of making the estimate,
or if the estimate is subsequently adjusted, this
should be clearly stated in a Public Report of
Mineral Resources or Ore Reserves and the nature
of the adjustment or modification described.

28. The words ore and reserves must not be used in


stating Mineral Resource estimates as the terms
imply technical feasibility and economic viability
and are only appropriate when all relevant technical,
economic, marketing, legal, environmental, social
and governmental factors have been considered.
Reports and statements should continue to refer to
the appropriate category or categories of Mineral
Resources until technical feasibility and economic
viability have been established. If re-evaluation
indicates that the Ore Reserves are no longer viable,
the Ore Reserves must be reclassified as Mineral
Resources or removed from Mineral Resource/Ore
Reserve statements.
It is not intended that re-classification from Ore
Reserves to Mineral Resources should be applied
as a result of changes expected to be of a short term
or temporary nature, or where company
management has made a deliberate decision to
operate on a non-economic basis. Examples of such
situations might be a commodity price drop
expected to be of short duration, mine emergency
of a non-permanent nature, transport strike etc.

REPORTING OF ORE RESERVES


29. An Ore Reserve is the economically mineable part
of a Measured or Indicated Mineral Resource. It
includes diluting materials and allowances for
losses which may occur when the material is
mined. Appropriate assessments, which may
PAGE 8

include feasibility studies, have been carried out,


and include consideration of and modification by
realistically assumed mining, metallurgical,
economic, marketing, legal, environmental, social
and governmental factors. These assessments

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

demonstrate at the time of reporting that


extraction could reasonably be justified. Ore
Reserves are sub-divided in order of increasing
confidence into Probable Ore ReservesD30 and
Proved Ore ReservesD31.
Ore Reserves are those portions of Mineral
Resources which, after the application of all mining
factors, result in an estimated tonnage and grade
which, in the opinion of the Competent Person or
Persons making the estimates, can be the basis
of a viable project after taking account of all
relevant metallurgical, economic, marketing, legal,
environmental, social and governmental factors.
Ore Reserves are inclusive of diluting material which
will be mined in conjunction with the Ore Reserves
and delivered to the treatment plant or equivalent.
The term economic implies that extraction of the
Ore Reserve has been established or analytically
demonstrated to be viable and justifiable under
reasonable investment assumptions. The term Ore
Reserve need not necessarily signify that extraction
facilities are in place or operative or that all
governmental approvals have been received. It
does signify that there are reasonable expectations
of such approvals.
It should be noted that the Code does not imply
that an economic operation must have Proved Ore
Reserves. Situations arise where Probable Ore
Reserves alone may be sufficient to justify
extraction, as for example with some alluvial tin
or gold deposits.

A Probable Ore Reserve has a lower level of


confidence than a Proved Ore Reserve.
31. A Proved Ore Reserve is the economically
mineable part of a Measured Mineral Resource. It
includes diluting materials and allowances for
losses which may occur when the material is
mined. Appropriate assessments, which may
include feasibility studies, have been carried out,
and include consideration of and modification
by realistically assumed mining, metallurgical,
economic, marketing, legal, environmental, social
and governmental factors. These assessments
demonstrate at the time of reporting that
extraction could reasonably be justified.
32. The choice of the appropriate category of Ore
Reserve is determined primarily by the classification
of the corresponding Mineral Resource and must
be made by the Competent Person or Persons.
The Code provides for a direct relationship
between Indicated Mineral Resources and
Probable Ore Reserves and between Measured
Mineral Resources and Proved Ore Reserves. In
other words, the level of geoscientific confidence
for Probable Ore Reserves is the same as that
required for the in situ determination of Indicated
Mineral Resources and for Proved Ore Reserves
is the same as that required for the in situ
determination of Measured Mineral Resources.

Some countries use the term Mineral Reserve


instead of Ore Reserve. The Joint Ore Reserves
Committee has retained the term Ore Reserve
because it assists in maintaining a clear distinction
between a Mineral Resource and an Ore Reserve,
a distinction which might be less clear if Mineral
Reserve was substituted. However, if preferred by
the reporting company, Ore Reserve and Mineral
Resource estimates for coal may be reported as
Coal Reserve and Coal Resource estimates.

The 1999 edition of the Code also provides, for


the first time, for a two-way relationship between
Measured Mineral Resources and Probable Ore
Reserves. This is to cover the situation where
uncertainties associated with any of the modifying
factors considered when converting Mineral
Resources to Ore Reserves may result in there
being a significantly lower degree of confidence
in the Ore Reserves than in the corresponding
Measured Mineral Resources. Such a conversion
would not imply a reduction in the level of
geological knowledge or confidence.

30. A Probable Ore Reserve is the economically


mineable part of an Indicated, and in some
circumstances Measured Mineral Resource. It
includes diluting materials and allowances for
losses which may occur when the material is
mined. Appropriate assessments, which may
include feasibility studies, have been carried out,
and include consideration of and modification
by realistically assumed mining, metallurgical,
economic, marketing, legal, environmental, social
and governmental factors. These assessments
demonstrate at the time of reporting that
extraction could reasonably be justified.

If the uncertainties in the modifying factors


preventing the Measured Mineral Resource being
converted to a Proved Ore Reserve are removed,
the Measured Mineral Resource may be converted
to a Proved Ore Reserve. However modification
is only acceptable to an equivalent or lower level
of confidence. No amount of confidence in the
modifying factors for conversion of a Mineral
Resource to an Ore Reserve can override the upper
level of confidence which exists in the Mineral
Resource. Under no circumstances can an
Indicated Mineral Resource be converted directly
to a Proved Ore Reserve.

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PAGE 9

THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

Application of the category of a Proved Ore


Reserve implies the highest degree of confidence
in the estimate with consequent expectations in
the minds of readers of the report. These
expectations should be borne in mind when
categorising a Mineral Resource as Measured.
Refer also to the guidelines to Clause 24 regarding
classification of Mineral Resources.

33. Ore Reserve estimates are not precise calculations


and tonnage and grade figures in Public Reports
should be expressed so as to convey the order of
accuracy of the estimates by rounding off to
appropriately significant figures.
Refer to the guidelines to Clause 25, regarding
rounding of Mineral Resource estimates.

34. Except for the special provisions relating to coal (see


Clause 39) Public Reports of Ore Reserves must specify
one or both of the categories of Proved and Probable.
Categories must not be reported in a combined form
unless details for the individual categories are also
provided. Ore Reserves must not be reported in terms
of contained metal or mineral content unless
corresponding tonnages and grades are also presented.
In reporting Ore Reserves, information on assumed
metallurgical recovery factors is very important,
and should always be included in Public Reports.

35. In situations where figures for both Mineral Resources


and Ore Reserves are reported, a clarifying statement
must be included in the report which clearly indicates
whether the Mineral Resources are inclusive of, or
additional to the Ore Reserves.
The committee recognises that there are legitimate
reasons, in some situations, for reporting Mineral
Resources inclusive of Ore Reserves and, in
other situations, for reporting Mineral Resources
additional to Ore Reserves. The committee does
not express a preference but it does require that
reporting companies make it clear which form of
reporting has been adopted. Appropriate forms of
clarifying statements may be:
The Measured and Indicated Mineral Resources
are inclusive of those Mineral Resources modified
to produce the Ore Reserves. or:
The Measured and Indicated Mineral Resources
are additional to the Ore Reserves.
Inferred Mineral Resources are, by definition,
always additional to Ore Reserves.
Where there is a substantial difference between
the statement of Mineral Resources and the
statement of Ore Reserves in a Public Report, an
explanation of the reasons for the difference should
PAGE 10

be included in the report. This will assist the reader


of the report in making a judgement of the likelihood
of the remaining Mineral Resources eventually being
converted to Ore Reserves.
Ore Reserves may incorporate material (dilution)
which is not part of the original Mineral Resource.
It is essential that this fundamental difference
between Mineral Resources and Ore Reserves is
borne in mind and caution exercised if attempting
to draw conclusions from a comparison of the two.
For the same reason, Ore Reserves should not be
added to Mineral Resources. The resulting total can
be very misleading in economic terms and is
capable of being misunderstood or, more seriously,
of being misused to give a false impression of a
companys mineral prospects.
Public Reporting of tonnage and grade estimates
using terms other than Mineral Resources and Ore
Reserves is not permitted under the Code.
In preparing the Ore Reserve statement, the
relevant Mineral Resource statement on which it
is based should first be developed. This can be
reconciled with the Mineral Resource statement
estimated for the previous comparable period and
differences (due, for example, to mine production,
exploration etc) identified. The application of cutoff and other criteria to the Mineral Resource can
then be made to develop the Ore Reserve statement
which can also be reconciled with the previous
comparable statement. Companies are encouraged
whenever possible to reconcile estimates in their
reports. A detailed account of differences between
estimates is not essential, but sufficient comment
should be made to enable significant variances to
be understood by the reader.

36. Table 1 provides, in a summary form, a list of the main


criteria which should be considered when preparing
reports on exploration results, Mineral Resources and
Ore Reserves. These criteria need not be discussed in a
Public Report unless they materially affect estimation
or classification of the Ore Reserves. Changes in
economic or political factors alone may be the basis for
significant changes in Ore Reserves and should be
reported accordingly.
Where diamond Ore Reserve grades are based on the
correlation of macrodiamond grade with the grade of
microdiamonds, this must be stated and its reliability
explained. If a valuation of a parcel of diamonds is
reported, the weight in carats and size range of the
contained diamonds must be stated and the value of the
diamonds must be given in US dollars per carat.
Refer also to Clause 19 and to the guidelines to
Clause 27.

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

REPORTING OF COAL RESOURCES AND RESERVES


37. Clauses 38 to 40 of the Code address matters which
relate specifically to the Public Reporting of Coal
Resources and Reserves. Unless otherwise stated,
clauses 1 to 36 of this Code (including Figure 1) apply.
Table 1, as part of the guidelines, should also be
considered persuasive when reporting on Coal
Resources and Reserves.
For guidance on the estimation of black Coal
Resources and Reserves and on statutory reporting
not primarily intended for providing information
to the investing public, readers are referred to
the 1999 edition of the Guidelines for the
Estimation and Reporting of Australian Black Coal
Resources and Reserves, a document drawn up
by a committee of coal industry and government
representatives and consultants from New South
Wales and Queensland.
Coal is of particular interest to State and Federal
Governments because of its impact on government
planning and land use implications. Reports to
governments may require estimates of coal
resources which are not constrained by short to

medium term economic considerations. Such


reports and estimates of strategic resources are not
covered by the JORC Code. Refer also to the
guidelines to Clauses 5 and 20.

38. The terms Mineral Resource(s) and Ore Reserve(s),


and the subdivisions of these as defined above,
apply also to coal reporting, but if preferred by the
reporting company, the terms Coal Resource(s) and
Coal Reserve(s) and appropriate subdivisions may
be substituted.
39. For coal reporting only, Probable and Proved Ore
(Coal) Reserves may be combined and reported as
Recoverable Reserves.
40. Reports of Marketable Coal Reserves, representing
beneficiated or otherwise enhanced coal product,
may be used in Public Reports in conjunction with,
but not instead of, reports of Ore (Coal) Reserves.
The basis of the predicted yield to achieve
Marketable Coal Reserves should be stated.

REPORTING OF MINERALISED STOPE FILL, STOCKPILES, REMNANTS,


PILLARS, LOW GRADE MINERALISATION AND TAILINGS
41. The Code applies to the reporting of all potentially
economic mineralised material including mineralised
stope fill, stockpiles, remnants, pillars, low grade
mineralisation and tailings.
For the purposes of the Code, mineralised stope
fill and stockpiles of mineralised material can be
considered to be similar to in situ mineralisation
when reporting Mineral Resources and Ore
Reserves. Consequently the Competent Person
assessing the fill or stockpiles must use the bases
of classification outlined in the Code. In most cases,
the opinion of a relevant professional should be
sought when making judgements about the
mineability of fill, remnants and pillars.
If there are not reasonable prospects for the eventual
economic extraction of a particular portion of the
fill or stockpile, this material cannot be classified as
either Mineral Resources or Ore Reserves. If some
portion is currently sub-economic but there is a
reasonable expectation that it will become
economic, then this material may be classified as a
Mineral Resource. Such stockpile material may
include old dumps and tailings dam material. If
technical and economic studies have demonstrated
that economic extraction could reasonably be
justified under realistically assumed conditions, the

material may be classified as an Ore Reserve.


The above guidelines apply equally to low grade
in situ mineralisation, sometimes referred to as
mineralised waste or marginal grade material,
and often intended for stockpiling and treatment
towards the end of mine life. For clarity of
understanding, it is recommended that tonnage and
grade estimates of such material be itemised
separately in Public Reports, although they may
be aggregated with total Mineral Resource and
Ore Reserve figures.
Stockpiles are defined to include both surface and
underground stockpiles, including broken ore
in stopes, and can include ore currently in the
ore storage system. Mineralised material being
processed (including leaching), if reported, should
be reported separately.
Mineralised remnants, shaft pillars and mining
pillars which are potentially mineable are in situ
mineralisation and consequently are included in the
Code definitions of Mineral Resources and Ore Reserves.
Mineralised remnants, shaft pillars and mining
pillars which are not potentially mineable must
not be included in Mineral Resource and Ore
Reserve statements.

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TABLE 1
CHECK LIST OF ASSESSMENT AND REPORTING CRITERIA
Table 1 is a check list and guideline which those preparing reports on exploration results, Mineral Resources and
Ore Reserves should use as a reference. The check list is not prescriptive and, as always, relevance and materiality
are overriding principles that determine what information should be publicly reported. It is, however, important
to report any matters that might materially affect a readers understanding or interpretation of the results or
estimates being reported. This is particularly important where inadequate or uncertain data affect the reliability
of, or confidence in, a statement of exploration results or an estimate of Mineral Resources and/or Ore Reserves.
The order and grouping of criteria in Table 1 reflects the normal systematic approach to exploration and
evaluation. Criteria in the first group Sampling Techniques and Data apply to all succeeding groups. In the
remainder of the table, criteria listed in preceding groups would often apply to succeeding groups and should
be considered when estimating and reporting.

CRITERIA

EXPLANATION
SAMPLING TECHNIQUES AND DATA
(criteria in this group apply to all succeeding groups)

Drilling
techniques

Drill type (eg. core, reverse circulation, open-hole hammer, rotary air blast, auger,
Bangka etc.) and details (eg. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, etc.). Measures taken to maximise sample recovery and ensure
representative nature of the samples.

Logging

Whether core and chip samples have been logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is
qualitative or quantitative in nature. Core (or costean, channel etc.) photography.

Drill sample
recovery

Whether core and chip sample recoveries have been properly recorded and results assessed. In
particular whether a relationship exists between sample recovery and grade and whether sample
bias may have occurred due to preferential loss/gain of fine/coarse material.

Other sampling
techniques

Nature and quality of sampling (eg. cut channels, random chips etc.) and measures taken to
ensure sample representivity.

Sub-sampling
techniques
and sample
preparation

If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether
riffled, tube sampled, rotary split etc. and whether sampled wet or dry. For all sample types, the
nature, quality and appropriateness of the sample preparation technique. Quality control procedures
adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to
ensure that the sampling is representative of the in situ material collected. Whether sample sizes
are appropriate to the grainsize of the material being sampled.

Quality of
assay data and
laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether
the technique is considered partial or total. Nature of quality control procedures adopted (eg.
standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy
(ie. lack of bias) and precision have been established.

Verification of
sampling and
assaying

The verification of significant intersections by either independent or alternative company personnel.


The use of twinned holes.

Location of
data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches,
mine workings and other locations used in Mineral Resource estimation. Quality and adequacy of
topographic control.

Data density
and distribution

Data density for reporting of exploration results. Whether the data density and distribution is
sufficient to establish the degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample
compositing has been applied.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

REPORTING OF EXPLORATION RESULTS


(criteria listed in the preceding group apply also to this group)
Mineral tenement
and land tenure
status

Type, reference name/number, location and ownership including agreements or material issues
with third parties such as joint ventures, partnerships, overriding royalties, native title interests,
historical sites, wilderness or national park and environmental settings. In particular the security
of the tenure held at the time of reporting along with any known impediments to obtaining a
licence to operate in the area.

Exploration done
by other parties

Acknowledgement and appraisal of exploration by other parties.

Geology

Deposit type, geological setting and style of mineralisation.

Data aggregation
methods

In reporting exploration results, weighting averaging techniques, maximum and/or minimum grade
truncations (eg. cutting of high grades) and cut-off grades are usually material and should be
stated. Where aggregate intercepts incorporate short lengths of high grade results and longer
lengths of low grade results, the procedure used for such aggregation should be stated and some
typical examples of such aggregations should be shown in detail. The assumptions used for any
reporting of metal equivalent values should be clearly stated.

Relationship
between
mineralisation
widths and
intercept lengths

These relationships are particularly important in the reporting of exploration results. If the geometry
of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down-hole lengths are reported, there should be a clear statement
to this effect (eg. downhole length, true width not known).

Diagrams

Where possible, maps and sections (with scales) and tabulations of intercepts should be included
for any material discovery being reported if such diagrams significantly clarify the report.

Balanced
reporting

Where comprehensive reporting of all exploration results is not practicable, representative reporting
of both low and high grades and/or widths should be practised to avoid misleading reporting of
exploration results.

Other substantive
exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited
to): geological observations; geophysical survey results; geochemical survey results; bulk samples
- size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.

Further work

The nature and scale of planned further work (eg. tests for lateral extensions or depth extensions
or large-scale step-out drilling).

ESTIMATION AND REPORTING OF MINERAL RESOURCES


(criteria listed in the first group, and where relevant in the second group, apply also to this group)
Database
integrity

Measures taken to ensure that data has not been corrupted by, for example, transcription or
keying errors, between its initial collection and its use for Mineral Resource estimation purposes.
Data validation procedures used.

Geological
interpretation

Nature of the data used and of any assumptions made. The effect, if any, of alternative interpretations
on Mineral Resource estimation. The use of geology in guiding and controlling Mineral Resource
estimation. The factors affecting continuity both of grade and geology.

Estimation
and modelling
techniques

The nature and appropriateness of the estimation technique(s) applied and key assumptions,
including treatment of extreme grade values, domaining, interpolation parameters, maximum
distance of extrapolation from data points. The availability of check estimates, previous estimates
and/or mine production records and whether the Mineral Resource estimate takes appropriate
account of such data. The assumptions made regarding recovery of by-products. In the case of
block model interpolation, the block size in relation to the average sample spacing and the search
employed. Any assumptions behind modelling of selective mining units (eg. non-linear kriging).
The process of validation, the checking process used, the comparison of model data to drillhole
data, and use of reconciliation data if available.

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

Cut-off grades
or parameters

The basis of the cut-off grade(s) or quality parameters applied, including the basis, if appropriate,
of equivalent metal formulae.

Mining factors
or assumptions

Assumptions made regarding possible mining methods, minimum mining dimensions and internal
(or, if applicable, external) mining dilution. It may not always be possible to make assumptions
regarding mining methods and parameters when estimating Mineral Resources. Where no
assumptions have been made, this should be reported.

Metallurgical factors The basis for assumptions or predictions regarding metallurgical amenability. It may not always
be possible to make assumptions regarding metallurgical treatment processes and parameters
or assumptions
when reporting Mineral Resources. Where no assumptions have been made, this should be reported.
Tonnage factors (in
situ bulk densities)

Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method
used, the frequency of the measurements, the nature, size and representativeness of the samples.

Classification

The basis for the classification of the Mineral Resources into varying confidence categories. Whether
appropriate account has been taken of all relevant factors. ie. relative confidence in tonnage/
grade computations, confidence in continuity of geology and metal values, quality, quantity and
distribution of the data. Whether the result appropriately reflects the Competent Person(s) view of
the deposit.

Audits or reviews

The results of any audits or reviews of Mineral Resource estimates.

ESTIMATION AND REPORTING OF ORE RESERVES


(criteria listed in the first group, and where relevant in other preceding groups, apply also to this group)
Mineral Resource
estimate for
conversion to
Ore Reserves

Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.
Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of,
the Ore Reserves.

Cut-off grades
or parameters

The basis of the cut-off grade(s) or quality parameters applied, including the basis, if appropriate,
of equivalent metal formulae. The cut-off grade parameter may be economic value per block
rather than metal grade.

Mining factors
or assumptions

The method and assumptions used to convert the Mineral Resource to an Ore Reserve (ie either
by application of appropriate factors by optimisation or by preliminary or detailed design). The
choice of, the nature and the appropriateness of the selected mining method(s) and other mining
parameters including associated design issues such as pre-strip, access, etc. The assumptions
made regarding geotechnical parameters (eg. pit slopes, stope sizes, etc.), grade control and preproduction drilling. The major assumptions made and Mineral Resource model used for pit
optimisation (if appropriate). The mining dilution factors, mining recovery factors, and minimum
mining widths used and the infrastructure requirements of the selected mining methods.

Metallurgical
factors or
assumptions

The metallurgical process proposed and the appropriateness of that process to the style of
mineralisation. Whether the metallurgical process is well-tested technology or novel in nature.
The nature, amount and representativeness of metallurgical testwork undertaken and the
metallurgical recovery factors applied. Any assumptions or allowances made for deleterious
elements. The existence of any bulk sample or pilot scale testwork and the degree to which such
samples are representative of the orebody as a whole.

Cost and revenue


factors

The derivation of, or assumptions made, regarding projected capital and operating costs. The
assumptions made regarding revenue including head grade, metal or commodity price(s), exchange
rates, transportation and treatment charges, penalties, etc. The allowances made for royalties
payable, both Government and private.

Market
assessment

The demand, supply and stock situation for the particular commodity, consumption trends and
factors likely to affect supply and demand into the future. A customer and competitor analysis
along with the identification of likely market windows for the product. Price and volume forecasts
and the basis for these forecasts. For industrial minerals the customer specification, testing and
acceptance requirements prior to a supply contract.

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THE 1999 AUSTRALASIAN CODE FOR REPORTING OF MINERAL RESOURCES AND ORE RESERVES (JORC CODE)

Others

The effect, if any, of natural risk, infrastructure, environmental, legal, marketing, social or
governmental factors on the likely viability of a project and/or on the estimation and classification
of the Ore Reserves. The status of titles and approvals critical to the viability of the project, such
as mining leases, discharge permits, government and statutory approvals.

Classification

The basis for the classification of the Ore Reserves into varying confidence categories. Whether
the result appropriately reflects the Competent Person(s) view of the deposit. The proportion of
Probable Ore Reserves which have been derived from Measured Mineral Resources (if any).

Audits or reviews

The results of any audits or reviews of Ore Reserve estimates.

ESTIMATION AND REPORTING OF DIAMOND MINERALISATION


(criteria listed in the first group, and where relevant in other preceding groups, apply also to this group)
Primary rock
source

Primary sources of diamonds in nature are variable and complex. Accordingly, information relating to
primary sources should contain details of the nature of the rock type together with its form, shape and size.

Diamond value

Diamond valuation is a highly specialised process and is only possible on parcels containing
appropriate numbers of macrodiamonds. It is not possible to evaluate diamond quality from
microdiamonds. Classification of diamonds as, for example, gem, near gem and industrial should
be made by recognised experts who should be identified in the valuation report and their
independence stated. The number of stones, the total carat weight and size range for the parcel
valued should be stated.

Secondary rock
source

Secondary sources of diamonds in nature, including alluvial deposits, are variable and complex.
Accordingly, information relating to secondary sources should contain details of the nature of the
geological environment together with its form, age and size.

Microdiamonds

Current practice in Australia defines microdiamonds as diamonds which will pass through a screen
with 0.4 mm aperture, ie. diamonds weighing less than 0.001 carats. Reports of microdiamond
recoveries should specify both the number of stones recovered and the top and bottom screen or
crushing sizes used in the recovery process.

Macrodiamonds

Macrodiamonds are defined as diamonds larger than 0.4 mm in size. Reports of macrodiamond recoveries
should specify both the number of stones and the total carat weight recovered above a specified screen size.

Indicator minerals

Conventional indicator minerals include garnet, ilmenite, chrome spinel and chrome diopside
having the requisite chemical and physical attributes that distinguish them from otherwise similar
minerals found in non-diamond associated rock types. Reports of indicator minerals should be
prepared by a suitably qualified laboratory.

Sampling
parameters

Reported discoveries of diamonds or indicator minerals from all samples must be accompanied
by details of the sampling parameters and sampling equipment used. Type of sample (stream
sediment, soil, bulk, rock etc.) as well as sample size, sample density and screening or jigging
parameters are required.

Cut-off grades

Assumptions regarding cut-off grades should specify minimum screen size.

Carat

One fifth (0.2) of a gram (often defined as a metric carat or MC).

Grades

Internationally, diamond grades for primary deposits are stated both in carats per tonne and carats per
100 tonnes. The Joint Ore Reserves Committee recommends the use of carats per tonne. In the case of
alluvial deposits, industry practice is to quote grades in carats per tonne or carats per cubic metre.
Volumes: state bank or loose cubic metres and basis of volume to tonnage conversions.

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APPENDIX 1
THE JORC CODE AND AUSTRALASIAN STOCK EXCHANGES
The Australian and New Zealand Stock Exchanges
(ASX and NZSX) have, since 1989 and 1992
respectively, incorporated the Code into their
listing rules. Under these listing rules, a Public
Report must be prepared in accordance with the
Code if it includes a statement on exploration
results, Mineral Resources or Ore Reserves. The
incorporation of the Code imposes certain specific
requirements on mining or exploration companies
reporting to the ASX and NZSX. The guidelines in
this section of the Code which paraphrase these
requirements should not be used as a replacement
for the relevant listing rules, and it is strongly
recommended that users of the Code familiarise
themselves with those listing rules which relate to
Public Reporting of exploration results, Mineral
Resources and Ore Reserves.
ASX listing rules require the Competent Person(s),
on whose work the Public Report of Mineral
Resources or Ore Reserves is based, to be named
in the report. The report or attached statement must
say that the person consents to the inclusion in the
report of the matters based on their information in
the form and context in which it appears, and must
include the name of the persons firm or employer.
Refer also to Clause 8 of the Code.
Appropriate forms of compliance statements may
be as follows (delete bullet points which do not
apply):
If the required information is in the report:
The information in this report that relates to
Mineral Resources or Ore Reserves is based
on information compiled by (insert name
of Competent Person), who is a Fellow or
Member of The Australasian Institute of Mining
and Metallurgy or the Australian Institute of
Geoscientists (select as appropriate): or

PAGE 16

If the required information is included in an


attached statement:
The Information in the report to which this
statement is attached that relates to Mineral
Resources or Ore Reserves is based on
information compiled by (insert name of
Competent Person), who is a Fellow or Member
of The Australasian Institute of Mining and
Metallurgy or the Australian Institute of
Geoscientists (select as appropriate).
If the Competent Person is a full-time employee
of the company:
(Insert name of Competent Person) is a fulltime employee of the company.
If the Competent Person is not a full-time
employee of the company:
(Insert name of Competent Person) is
employed by (insert name of Competent
Persons employer).
For all reports:
(Insert name of Competent Person) has
sufficient experience which is relevant to the
style of mineralisation and type of deposit under
consideration and to the activity which he (or
she) is undertaking to qualify as a Competent
Person as defined in the 1999 Edition of the
Australasian Code for Reporting of Mineral
Resources and Ore Reserves. (Insert name of
Competent Person) consents to the inclusion
in the report of the matters based on their
information in the form and context in which it
appears.

Note: Code is in normal typeface, guidelines are in indented italics, definitions are in bold.

UNITED STATES SECURITIES


AND
EXCHANGE COMMISSION
(SEC)

Reference for Mineral Reserves and Resources

Section 1 Reporting Codes (NI 43-101, JORC, SEC)


Edition 1 November, 2002

Principles of a Resource/Reserve Classification for Minerals

Page 1 of 5

Principles of a Resource/Reserve Classification for Minerals


By the U.S. Bureau of Mines and the U.S. Geological Survey
U.S. Geological Survey Circular 831, 1980
A revision of the classification system published as U.S. Geological Survey Bulletin 1450-A

Introduction
Through the years, geologists, mining engineers, and others operating in the minerals field have used
various terms to describe and classify mineral resources, which as defined herein include energy
materials. Some of these terms have gained wide use and acceptance, although they are not always used
with precisely the same meaning.
Staff members of the U.S. Bureau of Mines and the U.S. Geological Survey collect information about
the quantity and quality of all mineral resources, but from different perspectives and with different
purposes. In 1976, a team of staff members from both agencies developed a common classification and
nomenclature, which was published as U.S. Geological Survey Bulletin 1450-A - "Principles of the
Mineral Resource Classification System of the U.S. Bureau of Mines and U.S. Geological Survey."
Experience with this resource classification system showed that some changes were necessary in order
to make it more workable in practice and more useful in long-term planning. Therefore, representatives
of the U.S. Geological Survey and the U.S. Bureau of Mines collaborated to revise Bulletin 1450-A
Long-term public and commercial planning must be based on the probability of discovering new
deposits, on developing economic extraction processes for currently unworkable deposits, and on
knowing which resources are immediately available. Thus, resources must be continuously reassessed in
the light of new geologic knowledge, of progress in science and technology, and of shifts in economic
and political conditions. To best serve these planning needs, known resources should be classified from
two standpoints: (1) purely geologic or physical/chemical characteristics - such as grade, quality,
tonnage, thickness, and depth-of the material in place: and (2) profitability analyses based on costs of
extracting and marketing the material in a given economy at a given time. The former constitutes
important objective scientific information of the resource and a relatively unchanging foundation upon
which the latter more variable economic delineation can be based.
The revised classification system, designed generally for all mineral materials, is shown graphically in
figures 1 and 2 (see page 5); its components and their usage are described in the text. The classification
of mineral and energy resources is necessarily arbitrary, because definitional criteria do not always
coincide with natural boundaries. The system can be used to report the status of mineral and energy-fuel
resources for the Nation or for specific areas.

Resource/Reserve Definitions
A dictionary definition of resource, "something in reserve or ready if needed," has been adapted for
mineral and energy resources to comprise all materials, including those only surmised to exist, that have
present or anticipated future value.
Resource.-A concentration of naturally occurring solid, liquid, or gaseous material in or on the Earth's

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crust in such form and amount that economic extraction of a commodity from the concentration is
currently or potentially feasible.
Original Resource. - The amount of a resource before production.
Identified Resources. - Resources whose location, grade, quality, and quantity are known or estimated
from specific geologic evidence. Identified resources include economic, marginally economic, and
subeconomic components. To reflect varying degrees of geologic certainty, these economic divisions
can be subdivided into measured, indicated, and inferred. (The terms "proven," "probable," and "possible", which are commonly

used by industry in economic evaluations of ore or mineral fuels in specific deposits or districts, have been loosely interchanged with the terms measured, indicated,
and inferred. The former terms are not a part of this classification system.)

Demonstrated. - A term for the sum of measured plus indicated.


Measured. - Quantity is computed from dimensions revealed in outcrops, trenches,
workings, or drill holes; grade and(or) quality are computed from the results of detailed
sampling. The sites for inspection, sampling, and measurement are spaced so closely and
the geologic character is so well defined that size, shape, depth, and mineral content of the
resource are well established.
Indicated. - Quantity and grade and(or) quality are computed from information similar to
that used for measured resources, but the sites for inspection, sampling, and measurement
are farther apart or are otherwise less adequately spaced. The degree of assurance, although
lower than that for measured resources, is high enough to assume continuity between points
of observation.
Inferred. - Estimates are based on an assumed continuity beyond measured and(or) indicated
resources, for which there is geologic evidence. Inferred resources may or may not be supported
by samples or measurements.
Reserve Base. - That part of an identified resource that meets specified minimum physical and chemical
criteria related to current mining and production practices, including those for grade, quality, thickness,
and depth. The reserve base is the in-place demonstrated (measured plus indicated) resource from which
reserves are estimated. It may encompass those parts of the resources that have a reasonable potential for
becoming economically available within planning horizons beyond those that assume proven technology
and current economics. The reserve base includes those resources that are currently economic
(reserves), marginally economic (marginal reserves), and some of those that are currently subeconomic
(subecomic resources). The term "geologic reserve" has been applied by others generally to the reservebase category, but it also may include the inferred-reserve-base category; it is not a part of this
classification system.
Inferred Reserve Base. - The in-place part of an identified resource from which inferred reserves are
estimated. Quantitative estimates are based largely on knowledge of the geologic character of a deposit
and for which there may be no samples or measurements. The estimates are based on an assumed
continuity beyond the reserve base, for which there is geologic evidence.
Reserves. - That part of the reserve base which could be economically extracted or produced at the time
of determination. The term reserves need not signify that extraction facilities are in place and operative.
Reserves include only recoverable materials; thus, terms such as "extractable reserves" and "recoverable
reserves" are redundant and are not a part of this classification system.

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Marginal Reserves. - That part of the reserve base which, at the time of determination, borders on being
economically producible. Its essential characteristic is economic uncertainty. Included are resources that
would be producible, given postulated changes in economic or technologic factors.
Economic. - This term implies that profitable extraction or production under defined investment
assumptions has been established, analytically demonstrated, or assumed with reasonable certainty.
Subeconomic Resources. - The part of identified resources that does not meet the economic criteria of
reserves and marginal reserves.
Undiscovered Resources. - Resources, the existence of which are only postulated, comprising deposits
that are separate from identified resources. Undiscovered resources may be postulated in deposits of
such grade and physical location as to render them economic, marginally economic, or subeconomic. To
reflect varying degrees of geologic certainty, undiscovered resources may be divided into two parts:
Hypothetical Resources. - Undiscovered resources that are similar to known mineral bodies and
that may be reasonably expected to exist in the same producing district or region under analogous
geologic conditions. If exploration confirms their existence and reveals enough information about
their quality, grade, and quantity, they will be reclassified as identified resources.
Speculative Resources. - Undiscovered resources that may occur either in known types of
deposits in favorable geologic settings where mineral discoveries have not been made, or in types
of deposits as yet unrecognized for their economic potential. If exploration confirms their
existence and reveals enough information about their quantity, grade, and quality, they will be
reclassified as identified resources.
Restricted Resources/Reserves. - That part of any resource/reserve category that is restricted from
extraction by laws or regulations. For example, restricted reserves meet all the requirements of reserves
except that they are restricted from extraction by laws or regulations.

Guidelines for Classification of Mineral Resources


1. All naturally occurring metals, nonmetals, and fossil fuels in sufficient concentration can be classified
in one or more of the categories.
2. Where the term Reserves is used alone, without a modifying adjective such as indicated, marginal, or
inferred, it is to be considered synonymous with the demonstrated-economic category, as shown in
figure 1.
3. Definitions of resource categories can be modified for a particular commodity in order to conform
with accepted usage involving special geological and engineering characteristics. Such modified
definitions for particular commodities will be given in forthcoming government publications.
4. Quantities, qualities, and grades may be expressed in different terms and units to suit different
purposes, but usage must be clearly stated and defined.
5. The geographic area to which any resource/reserve estimate refers must be defined.
6. All estimates must show a date and author.

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Principles of a Resource/Reserve Classification for Minerals

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7. The reserve base is an encompassing resource category delineated by physical and chemical criteria.
A major purpose for its recognition and appraisal is to aid in long-range public and commercial
planning. For most mineral commodities, different grades and tonnages, or other appropriate resource
parameters, can be specified for any given deposit or area, or for the Nation, depending on the specific
objectives of the estimators; therefore, the position of the lower boundary of the reserve base, which
extends into the subeconomic category, is variable, depending on those objectives. The intention is to
define a quantity of in-place material, any part of which may become economic, depending on the
extraction plans and economic assumptions finally used. When those criteria are determined, the initial
reserve-base estimate will be divided into three component parts: reserves, marginal reserves, and a
remnant of subeconomic resources. For the purpose of Federal commodity assessment; criteria for the
reserve base will be established for each commodity.
8. Undiscovered resources may be divided in accordance with the definitions of hypothetical and
speculative resources, or they may be divided in terms of relative probability of occurrence.
9. Inferred reserves and the inferred reserve base are postulated extensions of reserves and of the
reserve base. They are identified resources quantified with a relatively low degree of certainty.
Postulated quantities of resources not based on reserve/reserve-base extensions, but rather on geologic
inference alone, should be classified as undiscovered.
10. Locally, limited quantities of materials may be produced, even though economic analysis has
indicated that the deposit would be too thin, too low grade, or too deep to be classified as a reserve. This
situation might arise when the production facilities are already established or when favorable local
circumstances make it possible to produce material that elsewhere could not be extracted profitably.
Where such production is taking place, the quantity of in-place material shall be included in the reserve
base, and the quantity that is potentially producible shall be included as a reserve. The profitable
production of such materials locally, however, should not be used as a rationale in other areas for
classifying as reserves, those materials that are similar in thickness, quality, and depth.
11. Resources classified as reserves must be considered economically producible at the time of
classification. Conversely, material not currently producible at a profit cannot be classified as reserves.
There are situations however, in which mining plans are being made, lands are being acquired, or mines
and plants are being constructed to produce materials that do not meet economic criteria for reserve
classification under current costs and prices, but would do so under reasonable future expectations. For
some other materials, economic producibility is uncertain only for lack of |detailed engineering
assessment. The marginal reserves category applies to both situations. When economic production
appears certain for all or some of a marginal reserve, it will be reclassified as reserves.
12. Materials that are too low grade or for other reasons are not considered potentially economic, in the
same sense as the defined resource, may be recognized and their magnitude estimated, but they are not
classified as resources. A separate category, labeled other occurrences, is included in figures 1 and 2.
13. In figure 1, the boundary between subeconomic and other occurrences is limited by the concept of
current or potential feasibility of economic production, which is required by the definition of a resource.
The boundary is obviously uncertain, but limits may be specified in terms of grade, quality, thickness,
depth, percent extractable, or other economic-feasibility variables.
14. Varieties of mineral or energy commodities, such as bituminous coal as distinct from lignite, may be
separately quantified when they have different characteristics or uses.

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Principles of a Resource/Reserve Classification for Minerals

Page 5 of 5

15. The amount of past cumulative production is not, by definition, a part of the resource. Nevertheless,
a knowledge of what has been produced is important to an understanding of current resources, in terms
of both the amount of past production and the amount of residual or remaining in-place resource. A
separate space for cumulative production is shown in figure 1. Residual material left in the ground
during current or future extraction should be recorded in the resource category appropriate to its
economic-recovery potential.
16. In classifying reserves and resources, it is necessary to recognize that some minerals derive their
economic viability from their coproduct or byproduct relationships with other minerals. Such
relationships must be clearly explained in footnotes or in an accompanying text.
17. Considerations other than economic and geologic, including legal, regulatory, environmental, and
political, may restrict or prohibit the use of all or part of a deposit. Reserve and resource quantities
known to be restricted should be recorded in the appropriate classification category; the quantity
restricted and the reason for the restriction should be noted.
18. The classification system includes more divisions than will commonly be reported or for which data
are available. Where appropriate, divisions may be aggregated or omitted.
19. The data upon which resource estimates are based and the methods by which they are derived are to
be documented and preserved.

file://C:\1m\RESERVES\standards\usgs%20circ%20831.html

11/27/2002

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 2

BARRICK DISCLOSURE POLICY

Section 2 BARRICK DISCLOSURE POLICY

THIS SECTION TO BE COMPLETED

Reference for Mineral Reserves and Resources

Section 2 Barrick Disclosure Policy


Edition 1 November, 2002

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 3

DISCUSSION OF NI 43-101

Section 3 - DISCUSSION OF NI 43-101

THIS SECTION TO BE COMPLETED

Reference for Mineral Reserves and Resources

Section 3 Discussion of NI 43-101


Edition 1 November, 2002

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 4

DRILLING METHODS
AND PROCEDURES

Section 4 DRILLING METHOD AND PROCEDURES


4.1.

INTRODUCTION ........................................................................................................ 4-1

4.2.

PROGRAM PLANNING ............................................................................................. 4-1

4.3.

HOLE NUMBERING................................................................................................... 4-2

4.4.

HIRING THE DRILLING CONTRACTOR .................................................................. 4-3

4.5.
REPORTING OF DRILLING ACTIVITIES AND RESULTS ....................................... 4-4
4.5.1.
DRILLING ACTIVITIES ........................................................................................ 4-4
4.5.1.1. Daily Shift Reports ............................................................................................. 4-4
4.5.1.2. Weekly Drilling Reports (Optional) ..................................................................... 4-5
4.5.1.3. Monthly Drilling Reports ..................................................................................... 4-5
4.5.2.
UPDATING OF WORKING MAPS AND SECTIONS ........................................... 4-5
4.6.

CONTRACTOR PAYMENT........................................................................................ 4-6

4.7.

DRILL RIG SUPERVISION ........................................................................................ 4-6

4.8.

DRILL RIG INSPECTIONS ........................................................................................ 4-7

4.9.

DRILL SITE PREPARATION ..................................................................................... 4-8

4.10.

DRILL RIG SET-UP.................................................................................................... 4-9

4.11. DRILL HOLE DEVIATION........................................................................................ 4-11


4.11.1. DEVIATION LIMITS............................................................................................ 4-11
4.11.2. CONTROLLING DEVIATION ............................................................................. 4-12
4.11.3. REMEDIAL ACTION........................................................................................... 4-12
4.12. DOWN-HOLE SURVEYS ......................................................................................... 4-13
4.12.1. EASTMAN CAMERA SURVEYS........................................................................ 4-13
4.12.2. OTHER DOWN-HOLE SURVEY METHODS..................................................... 4-14
4.12.3. GUIDELINES FOR CONTRACT DOWN-HOLE SURVEYS............................... 4-15
4.13. ENVIRONMENTAL MANAGEMENT ....................................................................... 4-15
4.13.1. DUST SUPPRESSION....................................................................................... 4-15
4.13.2. WASTE CONTROL ............................................................................................ 4-16
4.13.3. SITE REHABILITATION ..................................................................................... 4-16
4.14.

RE-DRILLING A HOLE ............................................................................................ 4-17

4.15. RC DRILLING........................................................................................................... 4-17


4.15.1. THE RC DRILLING METHOD ............................................................................ 4-17
4.15.1.1. The Typical Modern RC System .................................................................... 4-17
4.15.1.2. The RC Drilling Process................................................................................. 4-18
4.15.1.3. Advantages of the RC Down-Hole Hammer Method ..................................... 4-19
Reference for Mineral Reserves and Resources

Section 4 Drilling Methods and Procedures


Edition 1 November, 2002

4.15.1.4. Disadvantages of RC Versus DC Drilling....................................................... 4-19


4.15.1.5. Types of Bits and Down Hole Hammers ........................................................ 4-20
4.15.1.6. RC Drilling Equipment.................................................................................... 4-23
4.15.2. THE GEOLOGISTS CHECKLIST RC DRILLING ........................................... 4-24
4.15.3. RC SAMPLING................................................................................................... 4-25
4.15.3.1. Cyclone .......................................................................................................... 4-27
4.15.3.2 Splitter ............................................................................................................ 4-29
4.15.3.3. Wet Samples.................................................................................................. 4-32
4.15.3.4. Recording Water Flows.................................................................................. 4-32
4.15.3.5. Prevention of Sample Contamination............................................................. 4-33
4.15.3.6. RC Rig Sampling Interval............................................................................... 4-33
4.15.3.7. RC Rig Sampling Protocol ............................................................................. 4-34
4.15.3.8. Standards (SRM's) and Blanks ...................................................................... 4-34
4.15.3.9. Sample Dispatch ............................................................................................ 4-34
4.15.4. CHECK SAMPLES AND ASSAYS ..................................................................... 4-35
4.15.5. STORING RC REFERENCE SAMPLES............................................................ 4-36
4.15.6. RC CHIP LOGGING ........................................................................................... 4-36
4.15.6.1. Resource Definition Drilling............................................................................ 4-36
4.15.6.2. Grade Control Drilling..................................................................................... 4-37
4.16. DIAMOND CORE DRILLING ................................................................................... 4-37
4.16.1. THE DIAMOND CORE DRILLING METHOD..................................................... 4-37
4.16.1.1. The Diamond Drilling Process........................................................................ 4-37
4.16.1.2. Basics of a Diamond Core Drilling System .................................................... 4-39
4.16.1.3. Advantages of the Diamond Core Drilling Method ......................................... 4-42
4.16.1.4. Disadvantages of the Diamond Core Drilling Method .................................... 4-43
4.16.1.5. Core Sizes...................................................................................................... 4-43
4.16.1.6. Diamond Drilling Equipment........................................................................... 4-44
4.16.2. THE GEOLOGISTS CHECKLIST DIAMOND DRILLING ............................... 4-44
4.16.3. PRE-COLLARING DIAMOND CORE HOLES.................................................... 4-46
4.16.4. REAMING AND CASING ................................................................................... 4-46
4.16.5. CORE RECOVERY ............................................................................................ 4-46
4.16.6. PLACEMENT OF CORE IN TRAYS/BOXES AND MARK-UP ........................... 4-47
4.16.6.1. Driller Tasks ................................................................................................... 4-47
4.16.6.2. Geologist/Field Assistant Tasks ..................................................................... 4-48
4.16.7. CORE PHOTOGRAPHY .................................................................................... 4-50
4.16.8. CORE ORIENTATION........................................................................................ 4-50
4.16.9. GEOLOGICAL LOGGING OF CORE................................................................. 4-52
4.16.9.1. Exploration and Pre-Development Resource Drilling..................................... 4-52
4.16.9.2. Production (Stope Development) Drilling ....................................................... 4-53
4.16.10. STRUCTURAL LOGGING OF CORE ................................................................ 4-53
4.16.10.1. Guidelines .................................................................................................... 4-53
4.16.10.2. Measurement of Dip and Dip Direction ........................................................ 4-54
4.16.11. GEOTECHNICAL LOGGING OF CORE ............................................................ 4-56
4.16.12. CORE SAMPLING FOR ASSAY ........................................................................ 4-56
4.16.12.1. Sample Interval ............................................................................................ 4-56
4.16.12.2. Core Splitting or Sawing............................................................................... 4-57
4.16.12.3. Core Sawing................................................................................................. 4-57
4.16.12.4. Core Splitting................................................................................................ 4-58
Reference for Mineral Reserves and Resources

Section 4 Drilling Methods and Procedures


Edition 1 November, 2002

4.16.12.5. Collection of Core Samples.......................................................................... 4-59


4.16.12.6. Standards (SRM's) and Blanks .................................................................... 4-59
4.16.12.7. Sample Dispatch .......................................................................................... 4-60
4.16.13. CHECK SAMPLING AND ASSAYING ............................................................... 4-60

APPENDICES
Appendix 4-1
Appendix 4-2
Appendix 4-3

Control of hole deviation


Maximizing core recovery
Example of standard operating procedure for using a diamond saw

Reference for Mineral Reserves and Resources

Section 4 Drilling Methods and Procedures


Edition 1 November, 2002

4.1. INTRODUCTION
Drilling is a key part of both the resource definition and grade control processes and is the
highest cost component of a Geology Departments budget. It is therefore essential that the
supervising geologist is completely familiar with all aspects of the drilling program, and that
the program is adequately planned and supervised and the results interpreted in a timely
manner.
This section outlines the procedures for the two most common forms of drilling used for
exploration and at the mine sites reverse circulation (RC) and diamond coring (DC), also
referred to as diamond drilling (DD). A third form of drilling conventional open hole - is
nowadays generally only used to drill open pit blast holes. The diagram below shows the
differences between the three systems.

4.2. PROGRAM PLANNING


The geologist in charge of the project usually is responsible for planning the drilling program.
This must be completed using all available information such as previous drilling, geologic
mapping, geochemical and geophysical survey data (if an exploration project), and the most
up-to-date geologic interpretations.

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Most exploration offices and mine operations will have a formal system for approving drilling
expenditures. Exploration and development drilling programs typically require approval to
spend capital funds and must be reviewed by Barrick senior management. Grade control
drilling programs, if in addition to normal blast hole drilling and sampling, are usually funded
from the mine operating budget and must be reviewed and approved by appropriate
department manager(s). If a written proposal for the drilling is required, the following table is
provided as an example of a general guide for summarizing the proposed holes:

2002 DRILLING PROPOSAL NUM BER


LOCATION
Layout
Number

Hole
Number

Northing Easting

Elev.

Dip

Azim

RC
Depth

Dia
Depth

Geologist ..

Total
Depth

Comments

Date ..

Once agreement has been reached with the appropriate department manager(s), an
Authorization/Authority for Expenditure (AFE) is usually required, especially if capital funds
are to be used for the drilling program.

4.3. HOLE NUMBERING


Hole numbering should follow the format determined by each project or mine site. If none is in
place, the following suggestions are provided for setting up a working site format:

Each collar must have a unique number.

An alpha prefix should consist of 2 to 3 letters for location (e.g. NHS for New Holland
South) followed by 2 to 4 letters indicating the hole type (e.g. DD for diamond, RC or
GC for reverse circulation or grade control).

For ease of future electronic data entry, at least 4 numerals should be used (e.g.
NHSRC0005, not NHSRC5).

Drill hole re-entries (where RC holes are deepened by diamond drilling) should retain
the original hole numbering with the prefix modified (e.g. RC hole NHSRC0005 reentered as a diamond tail becomes NHSRCD0005).

The re-numbering of existing drill holes should be avoided.

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Drill hole numbering should be sequential with no gaps.

4.4. HIRING THE DRILLING CONTRACTOR


A drilling contractor should be chosen from a current list of Barrick Preferred Contractors, if
applicable to the exploration project or mine site. Standard Barrick drilling contracts should
be used, in accordance with Barrick purchasing and legal procedures and guidelines.
Following is a list of tasks that may need to be completed before a contractor commences
work on a new project:

A purchase order authorizing the drilling must be obtained, if required.

The drilling contract must be signed by both parties.

- Remember that the drilling contract is confidential

The project geologist must be familiar with the contracts payment (remuneration)
schedule and the specifications schedule in order to be able to run the drilling
operation efficiently and cost effectively.

If required, the contractor must submit an Environmental Health and Safety (EH&S)
Management Plan to the Project Geologist, Chief Mine Geologist, or the mine site
EH&S Manager for review.

The Project Geologist or Drilling Supervisor should ensure that the contractor has
Material Safety Data Sheets (MSDS) on the drill rig.

The Project Geologist must ensure that the contractors personnel undertake and
complete the appropriate site-specific safety training. (MSHA training in the U.S. In
Australia, such training is referred to as Inductions and Pit Passes). Care should be
taken to schedule any required training in advance as classes may only be conducted
on specific days.

If the drilling project is at a mine site, the contractors personnel must be shown the
locations and instructed in the procedures for using mine facilities that are commonly
required during the course of a drilling project, including the equipment lay-down
area(s), the wash-down area, the fuel farm, the source for drilling water, and the waste
area (rubbish tip).

If the drilling project is distant from a mine site, the Project Geologist must establish
locations for obtaining drilling water, fuel, and for disposal of waste. These locations
must then be identified to the contractor.

All Barrick personnel working near a rig should complete any safety training and/or
orientation (rig induction in Australia) required by the contractor.

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Edition 1 November, 2002

After drilling commences, regular contractor vehicle inspections should be conducted in


accordance with mine procedures or exploration site guidelines. The Project Geologist or
Drilling Supervisor should monitor drill crews during the course of the project to ensure that
the contractors clothing and personal protection equipment (PPE) conforms with mine
policies or exploration site guidelines.

4.5. REPORTING OF DRILLING ACTIVITIES AND RESULTS


4.5.1

DRILLING ACTIVITIES

4.5.1.1.

Daily Shift Reports

Daily drilling activities are typically reported by drilling shift on a shift report form supplied by
the contractor. Prior to starting the project, the Project Geologist or Drilling Supervisor should
review the format of the shift report to ensure that it is sufficient for reporting the desired
drilling data. The following list of information that should be included on a typical shift report
is provided as a guideline:

Date.

Drill hole number(s).

Drill hole diameter(s).

Drilling progress (metres or feet drilled per shift, from and to).

Chargeable time at standby rate and reason for standby.

Chargeable time at drilling (work time) rate.

Non-chargeable time (reason should be specified, such as weather or equipment


repairs).

Details of casing set in hole (length and diameter).

Drilling rods (pipe) or other equipment purposely left or lost in hole.

Consumables used (very important).

Serial numbers of bits and hammers used in each drill hole.

Down-hole survey results (where applicable).

Accidents, incidents, or fluid/fuel spillages (separate reports typically required).

It is very important that the Project Geologist or Drilling Supervisor obtain and sign the
contractor shift reports in a timely manner, in order to avoid disagreements with respect to rig
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Edition 1 November, 2002

delay (standby) time and drilling materials used (mud and other additives, cement, bits and
reamer shells, casing, casing bits and casing shoes) when the contractors invoice is issued.
If possible, the shift report should be signed at the end of each shift in the presence of the
driller submitting the shift report, so that any disagreements can be resolved promptly face-toface.

4.5.1.2.

Weekly Drilling Reports (Optional)

Depending on project requirements, a weekly report summarizing drilling progress may be


required. The following suggested format could be used if no standard format exists:
PROGRA
M

HOLE NUMBER
Planned

4.5.1.3

COORDINATES

Actual

Northing

Easting

DEPTH (metres)
Elev.

Planned

HOLE
STATUS

Actual

Monthly Drilling Reports

A monthly report summarizing the drilling progress and results is usually required for the
monthly mine site department reports or exploration reports. Typically the minimum
information in the monthly drilling report includes:

A summary table in a format similar to the Weekly Drilling Report shown above.

A table summarizing significant assays from the drill intervals sampled, similar to the
following suggested form:

LOCATION

HOLE
NUMBER

COORDINATES
Northing
Easting

El

INTERVAL
From
To

LENGTH
Metres

GRADE
g/t

COMMENTS

Summaries of drill logs.

A brief text that addresses areas where drilling was conducted, the type of drilling,
number of holes, and number of metres or feet completed in each area relative to the
project plan. The text should also comment on the significant assays and the
relationship of these assays to the current geologic interpretation.

4.5.2.

UPDATING OF WORKING MAPS AND SECTIONS

- The Geologist must plot geology and assays on working maps and cross
sections as soon as these data become available At a minimum, the data plotted should include:

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Major geological boundaries (including alteration).


Structures (faults, fracture zones, shear zones, veins, and bedding).
Significant assays.
Voids (old mine workings, vugs, and solution cavities).

Timely plotting of these data ensures that the drilling program can be modified to take into
account the new information, while ongoing planning for subsequent drilling programs can
take advantage of new data and interpretations. It also provides information that is readily
available for review by supervisors and management.

4.6. CONTRACTOR PAYMENT


Once received, the Project Geologist or Drilling Supervisor should promptly review the
contractors invoice (typically submitted at the end of each month), using the daily shift reports
as a check against the items on the invoice, such as footage drilled, rig standby time charged,
and consumables used. The contractors field superintendent or foreman should be
contacted promptly regarding any discrepancies or inaccuracies in the invoice.
Approval and payment of the invoice should be contingent on the contractor supplying any
safety, accident, or summary production reports required by the Barrick site policy. Once the
invoice is found to be correct and all required reports are received, the invoice should be
approved promptly and sent to the appropriate Barrick department for payment. It is
important for the Project Geologist or Drilling Supervisor to know and understand the policies
and deadlines imposed by Barricks internal purchasing and/or accounting departments with
respect to payment of invoices, in order to avoid delay of payment to the contractor.

- Approve the contractors invoice and arrange for payment ASAP -

4.7. DRILL RIG SUPERVISION


If there is no designated Barrick Drilling Supervisor assigned to the drilling project, the Project
Geologist sometimes acts as the drill rig supervisor. In this capacity, the Project Geologist
should have the authority and ability to perform the following duties:

Ensure that holes are drilled in accordance with the agreed drilling program.

Make recommendations to his/her supervisor on changes to the agreed drilling


program or for additional holes.

Enforce Barrick safety procedures at all times.

Visit the drill rig at least once during day shift and at least once during night shift
(except underground drilling projects, where a mine Shift Boss may assume this
responsibility).

Issue all instructions to the drill crew and field assistants and handle disputes.
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Instruct the Driller to immediately stop drilling if any of the following occur:

Any accident or safety incident.

Dangerous drilling conditions that could result in loss of equipment or injury to


employees.

Oil or fuel spillage.

Excessive deviation detected from a down-hole survey shot.

Examine the core/RC chips at the end of the hole prior to stopping the hole at its final
depth.

- There are very few good reasons for stopping a drill hole in mineralization Depending on the location, the Project Geologist may have to meet the qualifications of a
Qualified Person or Competent Person (see Section 1 of this reference volume) for drill rig
supervision.

4.8. DRILL RIG INSPECTIONS


As stated in the previous section, the Project Geologist or Drilling Supervisor must ensure that
all drill rigs are inspected at least once a shift. These inspections should conform to the
criteria established for each Barrick mine site or exploration project location. It is important
that any records generated by such inspections are retained and properly filed, as they may
be required for future accident/incident investigations or corporate safety audits.
In addition to safety conditions around the rigs, it is important for the Project Geologist to
monitor the performance of the contractor. The following check list serves as a general guide
for items to watch each time the rigs are inspected:

General housekeeping.
Sample size (RC drilling) and core recovery (DC drilling).
Core run blocks and sample bag labeling.
Cleaning of RC holes after each sample is taken.
Cleaning of rig sample cyclone (RC).
Cleaning and packing (boxing) of drill core.
Core orientation marks in place.
Check core/RC cuttings lithology.
Monitor hole deviation (where down-hole surveys are taken).
Anticipate possible changes to target depth.

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4.9. DRILL SITE PREPARATION


The layout of the drill site should allow the drilling operation to be carried out safely. The
following steps are provided as a guide for preparing a drill site:

Locate the approximate position of the collar.

For diamond core holes, allow enough space on the site for all of the contractors
equipment, including core storage and sumps.

Arrange for site preparation equipment (if needed), and ensure that the site
preparation is completed as specified before equipment leaves the drill site. Site must
be level to prevent trip hazards.

- Re-mobilizing equipment to fix a site preparation error is expensive

Do not cut off access to pit or underground working faces.

Where necessary, flag off the drill site to limit the area covered by personnel and
equipment, particularly inside an active pit with mining equipment working nearby.

Request surveyors to set the drill collar location and hole azimuth line (foresight and
backsight).

- Allow enough time for site preparation to avoid costly drill rig standby time For underground drill sites, the following typical site layouts are provided for reference:
Site With Light Vehicle and IT Access

Site Without Light Vehicle and IT Access

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For a surface diamond drill site, the following typical layout is provided for reference:
Suggested Site Layout for a Surface Diamond Drill Rig (Barrick Australian Version):

Note: In terrain of high relief, site width can be reduced to 10-12m and site length to 30m.
Sump 2 can be located in a separate cut below the drill site.

4.10. DRILL RIG SET-UP


To avoid communication errors, written instructions should be given to the driller detailing the
following for each hole:

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Hole number.
Location of collar.
Hole dip and azimuth.
Expected hole depth.
Allowable deviation for dip and azimuth.
Prescribed depths for down-hole surveys (if single-shot survey tools used).

Although different Barrick operating locations may have site-specific procedures for setting
and aligning drill rigs, the following suggested procedures are provided as a guide for sites
where specific procedures are not in place:

The rig should be aligned on a surveyed azimuth complete with foresight (collar) and
backsight (sighter) stakes (pegs). Aligning rigs with Brunton transits or other handheld compasses should be avoided if at all possible.

The hole should be collared within 0.2m (1.0 ft) of the surveyed collar location.

The hole dip (inclination) must be set by placing an accurate clinometer (such as a
SOLA or equivalent clinometer with magnetic base) on the starter (quill) rod that is
tightly secured in the drill chuck.

The following diagrams show several methods for aligning different drill rig types:

Surface Core/RC Drill Rig


BACKSIGHT
STAKE

CAB

DRILLER LINES
BY DRIVING
FLAGGING

1.24m
COLLAR STAKE

FLAGGING
TAPE

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Underground Diamond Core Rig


STEEL PIN

STRING LINE

DRILLER LINES UP
ON STRING LINE

COLLAR STAKE

STEEL PIN

4.11. DRILL HOLE DEVIATION


4.11.1.

DEVIATION LIMITS

All drill holes deviate, depending on the lithology drilled, the presence of structures, the dip
(inclination) of the hole, and the skill of the driller. Drill hole deviation must stay within certain
limits, depending on the depth, size, and orientation of the targets. Depending on the project,
sometimes hole deviation limits are set in the Specification Schedule of the drilling contract.
These examples of deviation limits is presented for reference:

All drill holes


DC holes
Pre-collars
RC holes

at collar
each 100m
each 100m
each 100m

+/- 1o for dip and azimuth


+/- 2o for dip and azimuth
+/- 2o for dip and azimuth
+/- 4o for dip and azimuth

The Project Geologist and Chief Geologist should carefully consider what if any deviation
limits should be addressed by a Specification Schedule.

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4.11.2.

CONTROLLING DEVIATION

In general, hole deviation can be controlled to some extent by a competent driller without
having to resort to the more expensive directional (Navi) drilling techniques. Skilled drillers
typically control deviation using methods that include:

Controlling the down-pressure (weight) on the drill bit. Down-the-hole hammers tend
to drill straighter holes because too much down-pressure impedes hammer action.

Varying the rotation speed (particularly important in core drilling).

Running a heavy starter rod and stabilizers behind an RC hammer in various


configurations.

Running a chrome core barrel outer tube (diamond drilling).

To assist with monitoring deviation, a stainless steel rod can be used behind the RC hammer
or diamond barrel to allow an accurate azimuth to be read from an Eastman camera.
A more detailed account of the techniques used to control deviation is presented in Appendix
4-1.

4.11.3.

REMEDIAL ACTION

If the permissible deviation limits are exceeded, the following course of action is
recommended:

The driller must notify the Project Geologist or Drilling Supervisor immediately and the
rig should be placed on non-chargeable standby (as provided in the drilling contract).

The Project Geologist must quickly make the decision whether or not to continue
drilling, having plotted the hole on the working maps and sections and consulted with
management, if necessary.

If additional decision time is required, the Project Geologist may wish to consider
moving the rig to a different hole location.

If necessary, the deviated hole may be re-drilled. Depending on the provisions of the
drilling contract, re-drilling may be at the contractors expense.

The Project Geologist must not over-emphasize penetration rates because most
drillers gladly will react and increase the rate (especially if contract price is based on
hole advance), and deviated holes are the predictable result.

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4.12. DOWN-HOLE SURVEYS


A number of survey tools or systems are now available for rapid collection of azimuth and dip
(inclination) data down-hole in order to determine the actual trace or path of a drill hole.
These are addressed briefly in the following subsections.

4.12.1.

EASTMAN CAMERA SURVEYS

Eastman camera surveys generally are conducted by the drilling contractor or Barrick site
technicians in order to monitor hole deviation. Originally designed as a rapid way to track
hole deviation in oil exploration, Eastman survey tools consist of either single shot or multishot camera systems. Typically, single shot cameras have been used for mineral exploration
because of camera durability and the substantially lower replacement cost.
The
recommended procedure for conducting Eastman single shot surveys is as follows:

Single shots should be taken at regular, pre-determined intervals in the hole (typically
every 30m or 100ft of hole depth).

The survey disc should be presented to the Project Geologist in a paper envelope
labelled with drill hole number, date, depth, dip, azimuth and camera number.

The Geologist should always verify the survey readings on each disc. Care should be
taken to adjust the magnetic azimuth readings on the discs for the magnetic
declination appropriate for the project location.

If the survey shot is taken with the camera situated inside the drill rods or in magnetic
ground, the azimuth reading will be incorrect, and should be disregarded.

Dip readings should always be correct, since the clinometer in the survey tool is not
affected by magnetics.

Calibration of the Eastman camera should be performed once a month by the


contractor and checked by the Project Geologist.

An example of a single-shot survey disc is shown in the diagram below. Note that the
inclination numbers (18) represent units of 10o. These are measured from the vertical and
are subtracted from 90o to calculate the dip of the hole (e.g. 8 = 10o dip). The bearing
numbers represent units of 10o and are equivalent to the magnetic azimuth.

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36

26
34

4.12.2.

28
32

30

OTHER DOWN-HOLE SURVEY METHODS

Other commonly used down-hole survey instruments that measure dip and azimuth include:

Eastman Multi-shot Camera or similar system This Down-hole Electronic Multi-shot


System (DEMS), like the Eastman single shot camera, is suitable for recording dip and
azimuth data in non-magnetic rock in open, uncased holes. The system offers
savings in time over single shot camera systems, but is much more expensive to
replace if lost in the hole.

Gyroscopic Systems (GYRO) These systems rely on a down-hole gyroscope that is


oriented to the collar azimuth and dip and caged before insertion into the hole. The
method is advantageous because subsequent down-hole azimuth and dip readings
are not affected by drill rods, casing, or magnetic minerals in the rock and, because
the survey can be performed inside the drill rod string, the risk of losing the survey
tools is greatly reduced. Because of the high cost of these systems, GYRO down-hole
surveys are usually performed by a survey contractor. GYRO systems generally work
best in holes steeper than 45o.

MAXIBOR Systems Like GYRO systems, these unique down-hole survey tools can
be used inside drill rods and casing and are not affected by magnetic constituents in
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the rock. Arguably the simplest of all survey tools in concept, a number of mining
companies have selected MAXIBOR systems in order to provide the greatest inhouse flexibility for obtaining down-hole surveys on a project. The MAXIBOR
system is the best for all types of holes, but is superior to the other systems in holes
flatter than 45o.

4.12.3.

GUIDELINES FOR CONTRACT DOWN-HOLE SURVEYS

If it is necessary to hire a contractor to perform down-hole surveying, the following guidelines


are provided for reference:

Arrange and execute a formal contract agreement and complete required safety and
mine site orientations (inductions).

Holes should be surveyed as soon as possible after completion. If possible, holes


should be batched to obtain maximum cost benefits from each contractor mobilization.
However, the risk of tool loss increases when surveying open (uncased) holes.

Safeguard the hole collars prior to surveying to prevent accidental loss of hole access.

Complete a written checklist of hole conditions that could increase the risk of tool loss
(old stopes and other underground workings, broken ground and problematic
geological formations) and provide it to the contractor before surveying commences.

Obtain preliminary survey results before the contractor leaves the site, examine the
results and resolve any obvious errors with the contractor.

Ensure that the correct and final survey data are entered into the drill hole database.

4.13. ENVIRONMENTAL MANAGEMENT


4.13.1.

DUST SUPPRESSION

Dust produced by RC drilling affects general visibility and is a hazard to the health of Barrick
and contractor employees. The following systems and practices are used on RC drill rigs to
suppress dust. These systems must be maintained in good working order:

The outside air return at the drill collar must be dampened by water injection or
passed through the fines cyclone.

The dust from the top outlet on the sampling cyclone must be removed by the fines
cyclone. Water MUST NOT be sprayed into the cyclone inlet to suppress dust, since
wetting the sample passing through the cyclone causes contamination of the sampling
equipment.

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- Water MUST NOT be sprayed into the cyclone inlet to suppress dust

The dust at the sample splitter can be minimized by ensuring that the upper door on
the collection box is always closed when the sample is dropped through the splitter.

An approved dust mask must be worn by all personnel who are exposed to dust where
adequate dust control is not practical.

The Project Geologist or Drilling Supervisor should shut the rig down if the dust
suppression equipment is not working correctly.

4.13.2.

WASTE CONTROL

For drilling projects at operating mine sites, washing down and servicing of equipment, cleanup of hydrocarbon or other chemical spills, and trash (rubbish) disposal should be performed
in accordance with site-specific regulations and policies in order to avoid contamination of drill
sites. In particular, oil or fuel leaks from machinery should not be tolerated in areas of gold
mining and processing at any time, since hydrocarbon contamination of ore feed can cause
gold loss in CIL plants.
The recommended procedures to be followed at remote drilling locations, where site-specific
procedures may not be in place, include:

Waste hydrocarbons, empty hydrocarbon containers and chemical containers must be


placed in leak-proof receptacles (usually available from the drilling contractor) and
disposed of at the nearest designated hydrocarbon containment area.

In the event of fuel or oil spillage at the drill site, the driller should immediately notify
the Project Geologist or Drilling Supervisor, who will advise on the procedure to collect
and dispose of the contaminated rock or soil. Clean up of spills should be at the
contractors cost, if not otherwise specified in the drilling contract.

- Oil or fuel leaks from machinery should NOT be tolerated in areas of gold
mining and processing at any time

Trash (rubbish) generated by drilling operations should be placed in suitable


containers and disposed of at a designated trash disposal site (tip).

Water generated from drilling operations must be contained in sumps at the drill site.

4.13.3.

SITE REHABILITATION

Site-specific procedures should be followed for rehabilitation of drill locations. Generally, sitespecific procedures will contain guidelines or policies for:

Removal of all rubbish and equipment.

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Plugging of drill hole collars.

Grouting of holes which may intersect existing underground workings or proposed


workings.

Backfilling of sumps.

Removal or scarifying of rejects from sample splitters.

Cleaning up minor fuel and oil spills.

4.14. RE-DRILLING A HOLE


The Project Geologist should consider re-drilling a hole under the following circumstances:

The samples are mixed up, damaged, contaminated, lost, or poor (unacceptable)
sample recovery has occurred.

There is excessive deviation of the hole as defined in the drilling contract.

The hole did not reach its target because drilling equipment (rods, core barrels,
hammers, or bits) lost down-hole could not be recovered.

The contractor did not inform the Geologist of dangerous drilling conditions.

The decision to re-drill a hole should be based on consultations with project management and
the contractors on-site representative. During these discussions it should be determined if
the cost of re-drilling the hole should be borne by the contractor.

4.15. RC DRILLING
4.15.1.

THE RC DRILLING METHOD

This section provides a general overview of the RC drilling method.

4.15.1.1.

The Typical Modern RC System

The system consists of the following basic components:

Drill rods - dual wall pipe.


Down-hole RC hammer (sometimes called a face-sampling hammer).
Bit - usually a button bit.
Drilling medium - compressed air.
Sample collection - through a cyclone and splitter.

RC samples consist of drill cuttings (rock chips and fines).


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4.15.1.2.

The RC Drilling Process

Drilling is accomplished as follows:

Compressed air is forced down between the inner and outer walls of the drill rod to the
hammer.

The hammer typically activates at 30 strokes per second (at 600 psi).

The percussion action of the drill bit breaks the rock.

The high-pressure air passes through the inside of the hammer and out through holes
in the face of the drill bit. The air is directed back in through holes in the centre of the
drill bit, transporting the drill cuttings into the innermost pipe in the drill rod string.

The air and drill cuttings then travel from the drill bit up the inner pipe of the drill rods
to the surface.

The drill cuttings are discharged through the rotary top drive, the bullhose, and into the
cyclone assembly.

Underground RC drills may have different sample collection systems.

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4.15.1.3.

Advantages of the RC Down-Hole Hammer Method

Better ability to drill hard rock formations.

Cheaper and faster than diamond core drilling.

Produces a larger sample than diamond core, which can result in improved sampling
statistics under normal conditions. Provides drier samples than open hole drilling.

Much less risk of contamination than open hole drilling methods (such as rotary air
blast holes).

4.15.1.4.

Disadvantages of RC Versus DC Drilling

Detailed structural information (thickness, orientation) cannot be obtained from RC


cuttings.

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Hole deviation generally is more pronounced.

Sample interval breaks are less accurate. Unique samples of narrow features cannot
be obtained.

Higher risk of sample contamination.

4.15.1.5.

Types of Bits and Down Hole Hammers

a) RC hammer with face sampling button bit


These are used almost exclusively in the hard rock drilling industry today.

b) Conventional down hole hammer with button bit


These were the first down hole hammers to be used with RC pipe, but these have generally
been superseded by face sampling hammers.
A crossover sub above the conventional hammer directed the air and drill cuttings from the
outside of the hammer into the inner pipe of the drill rods for return to the surface. A
disadvantage of this system is contamination from the open section of hole between the drill
bit and the crossover sub.

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c) Tri-cone bits
Tri-cone bits are used in lieu of a hammer for a limited number of applications. These include
drilling of clay formations, badly fractured ground and where excessive water can cause
hammers to experience hydraulic lock. Large diameter tri-cone bits are also used to ream out
holes prior to casing.
The RC tri-cone has a wider centre channel to increase the flow of sample up the central
pipe.

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d) Open centre bits


These bits were developed for use with RC systems in soft to medium hardness rock
formations such as overburden, coal, bauxite, phosphate, shale and sandstone.
A very similar system called air core was developed for the mineral sands industry.
Advantages of air core over other forms of drilling include less rod blockage, the ability to
handle large water volumes, prevention of balling of clays, drilling and sample recovery of
running sands, as well as the ability to deliver more geologically meaningful information
because continuous sticks of rock up to 30cm long are produced.

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4.15.1.6.

RC Drilling Equipment

The equipment normally supplied by a contractor to perform RC drilling consists of the


following:

Drill rig (a typical rig is shown below).

Compressor onboard the rig rated at 250 to 350 psi and 500 to 800 cfm.

Auxiliary compressor and booster on a separate truck, capable of boosting air to 750 psi
and 1800 cfm. This is required to speed up penetration and maintain dry samples.

Rod string of 4.5-in diameter. Smaller rods cause greater hole deviation.

Down hole hammers of 5-in diameter.

Drill bits of 5.25 to 5.5-in diameter.

Down-hole survey tools.


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Support vehicles.

4.15.2.

THE GEOLOGISTS CHECKLIST RC DRILLING

An organized geologist will have a checklist of personal equipment that should be carried in
the truck when visiting the drill rig. This will save unnecessary trips back to the office for
forgotten items. A typical checklist will include the following:

PPE (steel-capped boots, hard hat, reflective vest, ear plugs, safety glasses, dust masks,
sunscreen, and gloves. For underground projects, a safety belt, cap lamp and self
rescuer should be included).

Drilling program particulars (hole numbers, azimuths and dips, projected depths).

Field cross sections.

Blank log sheets, legend/codes.

Data logger (lap-top computer) and spare battery.

Rig safety inspection sheets.

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Pencils, eraser, texta pens.

Spare sample bags.

Sieves.

Water for rinsing drill cuttings for logging.

Water for drinking.

Tape measure.

Hand lens.

Acid bottle.

Grain size chart.

Percent estimation chart.

Magnet (magnetic scribe).

Magnetic Susceptibility metre.

Weighing scales.

Clinometer.

Compass.

Geology pick.

Flagging tape.

Spare survey stakes (pegs).

4.15.3.

RC SAMPLING

Sampling on RC drill rigs will always be accomplished using a cyclone and splitter. There are
many different sampling systems available on the market and attached to drill rigs. Not all of
these perform adequately and the sampling system should be approved before drilling starts.

- A rigs sampling system must be approved by a competent geologist before


drilling can commence -

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The following diagrams illustrate two sampling systems approved by Barrick:

A Vertically Tiered Cyclone/splitter Arrangement

Reproduced with permission from MetalCraft

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A Vertically Tiered Cyclone/splitter Arrangement With Fines Sampler and Dust


Collector

Reproduced with permission from MetalCraft

This type of system can deliver 99% of the sample to the splitter but has the disadvantage of
being large in size and weight.

4.15.3.1.

Cyclone

The cyclone must be matched to the air capacity of the drill rig. It should be capable of
reducing dust loss from the top vent to less than 5%. The operating principle of a cyclone and
critical dimensions are shown in the two figures below.

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4.15.3.2.

Splitter

Either a riffle splitter or a cone splitter should be used in each RC sampling system

a) Riffle Splitter

A riffle splitter can be manually operated as a separate unit, or built into a vertical
arrangement beneath the cyclone as a multi-tiered splitter.

It is necessary to have at least 12 riffles in each tier in order to achieve a


representative split.

There must be an equal number of riffles directed towards each split.

The riffle width must accommodate the largest particle in the sample.

All riffles must be of equal width.

The sample must be put evenly through all the riffles simultaneously in order to
achieve a representative split.

In an automated arrangement it is necessary to have a collection box above the first


riffle tier so that the sample is dropped evenly over all the riffles at the same time.

The riffles in each tier must be easily accessible for cleaning after each sample is
taken. This is usually performed either by spraying the splitter with compressed air or
vibrating the splitter with a rubber mallet.

A 3-tier riffle splitter is shown below:

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Reproduced with permission from MetalCraft

b) Cone Splitter
The principal features of a cone splitter are:

It is usually built into a vertical arrangement beneath the cyclone.

It is necessary to have a collection box and a delivery box above the cone splitter so
that the sample is dropped evenly over the cone.

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The width of the hood below the cone determines the weight of the sample split
(subsample). The size of the hood cannot be easily altered as it is welded into place.

It is necessary to have a rotary vibrator on the delivery opening above the cone in
order to facilitate cleaning, particularly with damp or wet samples.

The advantages of a cone splitter over a riffle splitter are:

Two or more hoods of any size can be built into the cone splitter allowing additional
sample splits (subsamples) to be taken which are all representative and thus usable
for check sampling.

The height of a cone splitter is less than a multi-tiered riffle splitter.

The unit is easier to clean.

A cone splitter is shown below:

Reproduced with permission from MetalCraft

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4.15.3.3.

Wet Samples

Collection of wet samples should be avoided if at all possible by the use of an auxiliary
compressor and booster. Where wet samples are unavoidable due to ground water inflow,
the following recommended procedure should be considered in the absence of site-specific
procedures.

a) Wet Sampling with a Riffle Splitter

During initial collection of the sample, the splitter should be removed and the entire
sample collected in a plastic bag. If the riffle splitter has been contaminated, it should
be thoroughly cleaned.

Collect a preliminary sample split (subsample) spearing in 6 different directions


through the bag with a 50-mm diameter PVC pipe.

If the assay of the preliminary sample is greater than 0.2g/t, the entire remaining
contents of the plastic bag should be dried thoroughly, then broken up and passed
through the riffle splitter in order to provide a more representative assay split
(subsample). The assay of the second split should then be tagged as wet and used
to replace the original assay in the database.

b) Wet Sampling with a Cone Splitter

Wet splitting can be conducted safely through a cone splitter, provided the system is
monitored after every sample for possible contamination and hang-up of sample in the
cone.

The assay should be tagged as wet when entered in the database.

- Generally it is good practice when drilling resource definition holes to stop an


RC hole after two consecutive wet samples and continue the hole with a
diamond drilling tool 4.15.3.4.

Recording Water Flows

Estimates of the amount of groundwater encountered in an RC hole should always be


recorded, since these data can be extremely valuable for planning pit and underground mine
dewatering, as well as location and design of underground development access. In order to
record these data:

The driller should be instructed to record the hole depths at which detectable water
inflow is encountered, and to estimate the flow rate in litres per second or gallons per
minute.

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The geologists responsible for logging the cuttings should ensure that this information
is transferred to the logging sheets (under Comments, or other appropriate heading).

At the end of the drilling program, the Project Geologist should ensure that a summary
of the water inflow data is provided to the mine engineers responsible for mine
planning and dewatering.

If an RC hole encounters a stope or cavity and there is no sample return, the following
recommended procedures should be followed, if there are no site-specific procedures in
place:

Continue the sample number sequence by placing empty numbered bags in with the
bags containing samples.

Re-establish full sample return as soon as possible.

-The driller must be instructed to spend as much time as required to reestablish full sample return when the hole once again encounters good ground4.15.3.5.

Prevention of Sample Contamination

Contamination of samples is of critical concern when evaluating a gold deposit. Because of


its very high value per unit weight compared to other metals such as silver, copper, lead, or
zinc, seemingly minor gold contamination can have a significant effect on a sample assay.
In order to minimize sample contamination, the procedures listed below should be followed:

Drilling must stop while air circulation is maintained in order to flush out all remaining
portions of the sample at the end of each prescribed sample interval.

The splitter must be cleaned thoroughly after each sample.

The inside of the cyclone and the collection box must be thoroughly cleaned out once
per shift when drilling in fresh rock, and more often, as required, in oxide rock or when
drilling under wet conditions.

Sample bags must be tied off immediately after filling to prevent external
contamination.

4.15.3.6.

RC Rig Sampling Interval

The sample interval is usually 1.0 or 2.0m (5.0 or 10.0ft in U.S.), or as determined by project
management.
After each sample interval, the driller must stop drilling for 5 to 15 seconds, without turning the
air off, in order to allow any of the sample remaining in the hole to be blown into the cyclone.

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4.15.3.7.

RC Rig Sampling Protocol

Samples for assay should be collected at the rig in accordance with established site- or
project-specific procedures. The general procedure is as follows:

Normally one split (subsample) of 3 to 4kg is designated as the assay split (assay
subsample) and is collected in a calico or heavy-duty plastic bag for assay. The
assay split (subsample) weight may need to be greater than 3 to 4kg for problematic
ore types, if routine check sampling so indicates. If this is the case, further evaluation
of the sample size is warranted, including construction of a sampling nomograph.

The bags containing the assay split (assay subsample) are numbered according to
site-specific procedures.

The remainder of the sample from the splitter is called the sample reject or rig reject
in the U.S. (field residue in Australia). This sample is handled or stored according to
site-specific procedures. If retained for storage, the bags containing the sample
rejects (field residue) should be labelled with hole depths.

If not collected separately at the splitter, the samples used for logging and for chip
trays must be taken from the sample reject (field residue) bags only.

- Assay splits (subsamples) must never be sampled for logging purposes

A consistent sample weight in fresh rock must be obtained. This can be monitored by
weighing samples on a set of scales on a regular basis. Note that it is impossible to
collect the entire sample from the hole interval, since some loss will occur from the
outside return (at the collar) and from the sampling cyclone vent (as dust).

Where no sample is recovered (i.e., when the drill passes through stopes or other
voids), it is good practice to continue the numbering sequence uninterrupted through
the void area. Although this results in empty numbered bags, it helps to avoid
confusion and inconsistencies when data are entered into the drill hole database.

4.15.3.8.

Standards (SRMs) and Blanks

The insertion of standard (SRM) and blank samples into the sample preparation and
analytical stream is an excellent way to monitor laboratory accuracy. Although a given
Barrick property may have its own set of guidelines for submitting standards and blanks with
sample lots dispatched from a project site, a recommended industry-accepted procedure is
outlined in Section 7, QA/QC for ASSAYING AND SAMPLING, of this reference volume.

4.15.3.9.

Sample Dispatch

Careless dispatch of samples to the laboratory can be a common source of problems such
as lost samples, incorrect sample numbers and sample damage during transport. Here are
some recommended guidelines for proper dispatch of samples:
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Prior to dispatch to the laboratory, a Sample Manifest must be prepared for each drill
hole that includes the following:

A listing of the assay split (subsample) numbers that corresponds to the numbers
written on the sample bags.

Alongside the sample numbers, the sample interval corresponding to that sample.

Slots on the sample list every 20th sample number for the insertion of a blank
sample (see Section 7, QA/QC for ASSAYING AND SAMPLING)

Clear, concise instructions for sample preparation and analysis.

Sample bags should not be picked up for transport to the laboratory until a responsible
person has checked off the number on each bag against the log sheet. If a numbering
error is found, it must be resolved before the bags are dispatched to the laboratory.
Likewise, samples should not be dispatched until the numbers on the sample sacks
are checked against the Sample Manifest in order to account for all samples.

On the day that samples leave the project site a dispatch sheet should be faxed to the
laboratory before the end of shift.

Sample rejects (field residues) should be promptly transported to the appropriate


storage area or sample storage farm (Australia).

4.15.4.

CHECK SAMPLES AND ASSAYS

For every RC drilling program, 5% of the samples should be checked as part of the quality
control program.

a) Check Assaying
This is required to monitor potential assay bias at the Primary (Principal) Laboratory. A
selected number of pulps from the assay splits (subsamples) analyzed by the primary
laboratory are sent to a second laboratory for re-assay.

b) Check Sampling
This is required to verify that the assay subsample that is split from the original sample is
representative of that sample.
Instructions for performing Check Assaying and Check Sampling are outlined in Section 7,
QA/QC for ASSAYING AND SAMPLING, of this reference volume.

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4.15.5.

STORING RC REFERENCE SAMPLES

Rejects and pulps from the various stages of the sampling and analytical processes should be
stored for future re-assaying, metallurgical testing (see Section 10, METALLURGICAL DATA
COLLECTION AND TESTWORK), or reference purposes. These rejects (residues) and
pulps include:
a) Assay splits (subsamples)

~500g pulps in paper packets

pulp rejects (residues)

Lab to store for predetermined period `( 3


months), then return to Barrick.
Lab to keep for predetermined period ( 3
months), then discard.

b) Sample rejects (field residues) in plastic bags Store on-site.


c) Chip trays

Store indoors on site

d) Metallurgical samples

See Section 10

4.15.6.

RC CHIP LOGGING

The Project Geologist should make sure that the chips collected at the RC rig are logged
promptly using the standard log sheet established for the particular site or project. The
degree of detail in the logs will depend on the local geology and the purpose of the drilling
program. For example, programs designed for resource definition and site condemnation
typically require a lower level of logging detail.

4.15.6.1.

Resource Definition Drilling

As a minimum, the following features should be logged:

Rock type (lithology).

Alteration.

Mineralization (% sulphides, especially pyrite).

Clays and gouge (possibly related to structure).

Contacts between alluvium and bedrock, the base of the zone of complete oxidation
and mixed (transition) zone, and the contact between the mixed (transition) zone and
sulphide (sometimes referred to as fresh rock) zone.

Other features that may be relevant to interpreting local geology, such as veining, rock
texture and fabric (if distinguishable), and grain size.

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4.15.6.2.

Grade Control Drilling

During mining of a deposit, the geology is usually reasonably well understood, and
logging of chips where RC drilling is used for grade control does not need to be done
in great detail. Because speed is normally of the essence, only the features that are
locally critical to grade control should be logged.

4.16. DIAMOND CORE DRILLING


4.16.1.

THE DIAMOND CORE DRILLING METHOD

Diamond core drilling has been used for more than 100 years to discover, delineate and
define ore deposits throughout the world. As a result of technical advances, it remains the
primary method for providing data used by geologists, mining engineers, and metallurgists to
discover and develop mines.

4.16.1.1.

The Diamond Drilling Process

The principal features of the diamond drilling (diamond core) method are listed below:

A diamond bit is used to cut a core of rock.

The core is forced from inside the bit into the core barrel (which rotates with the drill
rods) where it is collected and protected inside a non-rotating inner tube.

Core barrels usually come in 3m (10ft) or 6m (20ft) lengths.

Water and mud additives are pumped down the rods in order to:

lubricate and cool the drill bit.


remove cuttings from the hole.

The additives can also stabilize the wall of the hole in bad ground by forming a mud
cake on the surface of the wall. Sumps at the surface of the drill rig are used to
contain the return water and mud so that there is no contamination of the drill site, drill
cuttings can settle out of the mud and the mud can be re-circulated.

When drilling conventionally, the rod string must be pulled to retrieve the core. With
more common wireline systems, the core is removed from the core barrel without
having to pull the rod string by using an overshot assembly, which is sent down the
rods and attached to the head of the inner tube. A wireline cable attached to the
overshot then pulls the inner tube and core out of the hole.

The wireline is also used to run down-hole survey tools and core orientation tools
down the drill rods (See Section 4.16.9).

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4.16.1.2.

Basics of a Diamond Core Drilling System

The force required to advance the drill bit through the rock is supplied by the hydraulic
head and the weight of the drill rods.

Drill rods are flush-joint single wall pipe.

A wide variety of bits is available to suit different ground conditions, including:

Impregnated diamond (most commonly used) while the bit rotates, the matrix
holding the diamonds slowly erodes, exposing new diamonds which continue the
cutting process.

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Surface set diamond.

Polycrystalline diamond. (not pictured)

The reamer shell is located between bit and core barrel and is used to maintain hole
gauge.

The drilling medium is water, with mud additives as required for hole stability.

Core is retrieved using the following two methods:

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Conventional Core Barrel


The core is collected within an inner tube interior to the core barrel. This type of
core barrel is used when drilling competent rock.

Triple Tube Core Drilling


This technique is used in soft or broken ground where the risk of core loss is high,
or where oriented core is required for collection of geotechnical data (see Section
5, GEOLOGICAL DATA COLLECTION). The core is fed into a thin-walled third
tube or split liner that is split longitudinally into two halves. Once out of the hole,
the core and split tube (liner) are pushed out of the inner tube by a piston
actuated by water under pressure from the water pump.

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Core sample retrieval systems include:

Conventional
The entire rod string is pulled to retrieve core from the core barrel.

Wireline
The inner tube holding the core is recovered from the core barrel by lowering an
overshot on a wireline through the rod string (the rod string is not pulled).

Triple Tube Wireline


The inner tube holding the core is recovered in the same manner as an ordinary
wireline core barrel. The split liner (third tube) is then removed from the inner tube
as described above (see illustration), the split tube is parted and the top half set
aside, revealing the core preserved undisturbed in the lower half of the split tube.

4.16.1.3.

Advantages of the Diamond Core Drilling Method

Compared to the RC drilling method, diamond coring offers the following advantages:

True presentation of the geology in an unbroken core of rock.

It is the only drilling method that allows collection of structural orientation data.

The possibility of sample contamination is greatly reduced.

Drilling can be taken to greater depths than RC drilling.

Diamond rigs can be more portable than RC rigs and require less support when
operational.

Deviation during hole drilling can be controlled to some degree.

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4.16.1.4.

Disadvantages of the Diamond Coring Method

The disadvantages of diamond coring compared to RC drilling include:

The method is generally slower than RC drilling.


Higher cost.
Smaller sample size per interval drilled.

4.16.1.5.

Core Sizes

Not To Scale

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4.16.1.6.

Diamond Drilling Equipment

The equipment normally supplied by a contractor to perform diamond drilling consists of the
following:

Drill rig (may be skid mounted or on a truck).


Mud pump.
Rod string and core barrel to match the core diameter requested by the client.
Drill bits to match the required core diameter.
A variety of muds and hole conditioners.
Down-hole survey device (typically an Eastman single shot survey camera).
Core orientation device.
Water truck, water tank.
Support vehicles.

The following equipment is supplied by Barrick for collecting, processing and storing the core:

Core trays.

Run (marker) blocks.

Marker (paint) pens for labelling run blocks, core boxes and blocks that note where
samples are removed for making thin sections or performing geotechnical tests.

Diamond saw or core splitter.

Replacement blades for saw/splitter.

Logging table.

Angle iron for marking core orientation line.

Water for washing down core during logging.

Sample bags.

Core storage racks.

4.16.2.

THE GEOLOGISTS CHECKLIST DIAMOND DRILLING

An organized geologist should have the proper personal equipment when visiting the diamond
drill rig or logging core in the core shed or core yard. This will save on unnecessary trips back
to the office for forgotten items. The following typical checklist is provided as a guideline:

PPE (steel-capped boots, hard hat, reflective vest, ear plugs, safety glasses,
sunscreen, gloves). If the project is underground, include a cap lamp and self rescuer.

Water for drinking.


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Drilling program particulars such as hole azimuths, dips and drill site locations.

Field cross sections.

Blank log sheets.

Rig safety inspection sheets.

Data logger or appropriate laptop computer and spare battery (if electronic logging).

Pencil, eraser.

Coloured pencils or texta pens.

Water and rags or brush for wetting core during logging.

Tape measure.

Hand lens.

Scribe (preferably steel and not tungsten).

Acid bottle.

Core protractor strip for measuring structure angles with core axis.

Grain size chart.

Percent estimation chart.

Magnet (magnetic pen).

Magnetic Susceptibility meter.

Clinometer.

Compass.

Geology pick.

Flagging tape.

Spare survey stakes (pegs).

Camera.

Spare film.

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4.16.3.

PRE-COLLARING DIAMOND CORE HOLES

Diamond core holes are sometimes pre-collared to reduce overall drilling costs per hole. Precollaring is simply the drilling of the upper alluvial or unmineralized portion of a core hole
using open hole rotary or RC methods. Pre-collars are usually drilled using an RC rig or a
multi-purpose diamond drill rig capable of RC drilling.
Choosing the pre-collar depth depends on:

The down-hole distance to the target zone of interest.


The depth capability of the rig drilling the pre-collar portion of the hole.

Hole deviation in the pre-collar portion of the hole must be carefully monitored so that the
diamond core portion will reach the target. (In Australia, this portion of the hole is called the
diamond tail). Pre-collars are usually cased to prevent diamond drill rod vibration and
degradation of the alluvial portion of the hole, and to seal off weathered ground.

- The diamond core (tail) portion of a hole should NEVER be commenced


until the pre-collar portion has been accurately surveyed and plotted on
section 4.16.4.

REAMING AND CASING

Reaming and casing are usually performed to protect the diamond hole from collapsing in
poor ground. Reaming is simply the enlarging of the diameter of the hole in order to allow
installation of the larger-diameter pipe that serves as the hole casing.

4.16.5.

CORE RECOVERY

The goal of a diamond drilling program should be to obtain maximum core recovery at all
times. Poor core recovery raises doubts that the recovered portion of the sample is
representative of the drilled interval. Unfortunately, some drillers prefer to push for maximum
drill advance, often to the detriment of recovery. This can often happen when a rig is run 24
hours per day and the different shift crews tend to compete for footage. The Project
Geologist or Drilling Supervisor should always be aware of declining core recovery or
sporadic poor recovery and how these may relate to drilling advance rates.
The language of the drilling contract should make it clear that maximizing core recovery is a
prime consideration for the drilling contractor.

- The Geologist should closely monitor core recovery while drilling is


underway Appendix 4-2 details some of the actions that can be taken by the Geologist and the driller in
order to maximize core recovery. In order for the Geologist to properly measure core
recovery, the driller should place marker blocks at the beginning and end of the intervals
where no core was recovered. Where possible, these blocks should define the interval of
core loss within the individual drilling run that is defined by run blocks. Core recovery should
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be recorded as a length measurement for each drill run and should not be logged as a visual
estimation of percentage recovery.
If poor core recovery is due to soft or broken ground, a triple tube core barrel will help
maximize core recovery. When electing to use triple tube tools, the contractor should be
asked to supply two additional sets of tube splits for the innermost barrel.
If triple tube core barrels are used, the Geologist should perform the following logging
operations while the core is still in the split tube, before the core is disturbed or transferred
into a separate core tray or box:

Measure length of recovered core.


Measure diameter of core if density determinations are required.
Measure structural features (angles relative to core axis).

4.16.6.

PLACEMENT OF CORE IN TRAYS/BOXES AND MARK-UP

4.16.6.1.

Driller Tasks

The driller should present the diamond drill core for logging/sampling as follows:

Core should be free of oil and grease and placed in appropriate core trays or boxes.

Core is placed in the box or tray like the lines of text in a book, with an arrow on the
tray at the start of the sequence.

Core trays/boxes should be labelled with:

Hole number
Tray/box number
Depth from / to
EOH (End of Hole) written on last tray or box.

Run (marker) blocks should be placed after each drilled interval and labelled with the
drillers depth measurement.
START
0.0m

1.50m

3.00m

4.25m

CAVITY

4.50m
4.90m

PLAN VIEW
HOLE NUMBER

DEPTH FROM/TO

BOX NUMBER

SIDE VIEW

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- Check that the driller measures depth based on length of drill steel down
the hole, NOT length of core

Where possible, place TD (True Depth) on marker block where drill runs end with a
face break (i.e., core broke off even with the face of the core bit).

The position of known core loss should be clearly indicated with marker blocks.

4.16.6.2.

Geologist/Field Assistant Tasks

The Geologist or Field Assistant should use site- or project-specific procedures, or the
following recommended procedures when marking up diamond drill core:

For core that is to be oriented, remove the core from the tray or box and place it on an
orientation rack (usually a piece of upturned angle iron).

Where possible, fit the core back together in the orientation rack. If core is broken or
has been ground, use any geological features observed (rock type, foliation, colour,
veining) in order to assist with fitting the core back together.

For oriented core, draw a reference line along the bottom (lowest point) of the core,
i.e. closest to the orientation mark, and draw arrow marks pointing in the down-hole
direction.

- The orientation line should always indicate the BOTTOM of core in the hole

Where the orientation mark is of good quality and core fits well, draw a solid reference
line. If poor, draw a dashed line.

Non-oriented core should also be fitted and splitting (sawing) lines drawn, if required.
While splitting lines should be as consistent as possible down the entire drill hole, the
lines should ensure that each half core is a mirror image of the other half after splitting
to the extent possible.

Once fitted, the core is then marked up with sample metre or footage interval marks.

Look for face breaks, as these will be the only accurate depths in the hole.

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Face breaks have a ridge that protrudes from the core circumference and the face
is commonly convex. This results from the core breaking directly off the bottom of
the hole when the rods are pulled and the core lifter contracts around the core

More commonly, the core breaks off some distance above bottom and is picked
up in the next drilled interval.

BREAK OFF

FACE BREAK
DEPTH ON
MARKER BLOCK

At a face break, the depth written by the driller on the run (marker) block is equal to
the length of drill steel in the hole.

Mark-up work should progress up and down the hole from selected face breaks.
Metre/footage intervals on the core should be marked using a permanent marker.
Note that the depth on the run (marker) block may not match up with measurements
because:

Core from the run above the marker block may have broken short and be
included in the next run (sometimes referred to on drillers logs as stick-up).

The driller has rounded the depth measurement to the nearest foot or 10cm.

Core loss may have occurred.

- Allow sufficient time to CORRECTLY mark up the depths on core

On the half of the core that is to be retained after splitting or sawing, write all
metre/footage marks and geological labels on the right-hand side of the reference line
where the line is uppermost when the core is held in front of the Geologist and the
down arrow is pointing away.

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4.16.7.

CORE PHOTOGRAPHY

For exploration and pre-development diamond drill holes, all core should be photographed
prior to splitting, sawing, or sampling, using either a conventional camera or a digital camera.
When practical from a logistics standpoint, production (stope delineation) holes should also
be photographed if whole core is sent for assay. If site- or project-specific procedures are not
in place, the following recommended procedures should be followed:

Do not photograph or record digital image of core until mark-up has been completed.

Use one photo/image per tray/box.

Prior to photographing or recording a digital image, place disposable labels alongside


the tray or box. Labels should clearly indicate hole number, tray/box number, total
interval in box (from/to depths), and scale.

Tips for taking good photos/images:

Wet down the core just before taking photo or image.

Keep tray out of direct sunlight to prevent harsh shadows and reflection.

Orient camera at right angles to centre point of tray.

When using a conventional camera, a 28mm lens allows for a closer distance
between camera and tray.

Fill the entire viewfinder with tray.

Avoid use of flash as this reflects off wet core surfaces

Always complete photography or recording of digital images before splitting and


sampling the core.

Set up a permanent filing system for the photos and negatives.

Store digital images in a permanent directory as .jpg files. If necessary, the images
can be cropped and plotted using a program such as CorelDraw.

4.16.8.

CORE ORIENTATION

Oriented diamond drill core can provide valuable structural information for interpreting
geology and providing geotechnical evaluation of ground conditions.

- It is good practice to ALWAYS orient diamond drill core -

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It is best to consider collecting oriented core data only for holes with dips (inclinations)
between minus-30o and minus-80o (approximately) since most orienting methods rely on
gravity to properly position the apparatus that indicates the bottom side of the hole.
Typically, one orientation reading is taken every one to three runs. However, the frequency
for taking orientations is also highly dependent on:

The importance of the structural data to be measured (i.e. faults/jointing that could
seriously affect pit slope stability or the safety of underground openings.

How easily the core can be fitted together between drill runs.

There are several types of orientation devices commonly used:

a) Spear device.

b) Van Ruth device.

The spear relies on gravity to mark


the low side on the next core run. A
red or yellow china graph pencil is
inserted into the end of the spear for
hard rock formation. A hardened
point is inserted for soft to medium
rocks.

The Van Ruth device is lowered to the


bottom of the hole and the pins position
themselves to fit the profile of the rock
surface. When the next drill run is
recovered, the pins are matched with
the end of the core. An internal gravity
bar or ball bearing in the device
indicates the bottom side of the hole.
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In addition to the spear and Van Ruth devices, the Christensen scribe (generally the most
reliable), the ball-mark method and the simple use of modeling clay to take an impression of
the bottom of the hole, are alternative methods for orienting core.

4.16.9.

GEOLOGICAL LOGGING OF CORE

All diamond core should be logged prior to splitting, sawing, or sampling for assay. The
degree of detail will depend on the local geology and the purpose of the drilling program. For
example, exploration and pre-development holes typically are logged in greater detail than
production (stope definition) core holes.
The core log sheet that is standard for the site or project should be used. In the absence of
site- or project-specific logging procedures, the following recommended guidelines should be
used:

Prior to beginning logging, these steps should be completed:

Check that core mark-up is complete and correct (see Section 4.16.6).
Always wet the core to better reveal colour, alteration and textural features.
Briefly examine the entire hole to get a feeling for the overall geology.
Proceed to log in detail.

- When logging, the Geologist must strike a balance with respect to detail - DO NOT LOSE SIGHT OF THE BIGGER PICTURE!!!

First identify geological units and lithologies and log contacts.

If the unit or lithology is the same as one already described in the hole, then the
notation as from interval ___-m (ft) to ___-m (ft) will suffice for a description.

It is preferable always to describe content estimates as a percentage of volume (i.e.,


10% sulphides or 4% disseminated pyrite, instead of minor to moderate
sulphides, or minor pyrite).

4.16.9.1.

Exploration and Pre-Development Resource Drilling

When logging core from exploration or pre-development resource definition drill holes, siteor project-specific logging procedures should be followed. In the absence of these
procedures, as a minimum the following items should be logged:

Structure.

Rock type, lithology.

Colour, texture, and fabric.


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Alteration.

Mineralization (percentage of sulphides, especially pyrite) in structures and


disseminations.

Contacts between alluvium and bedrock, between the base of any zone of complete
oxidation and mixed (transition) zone and between the mixed (transition) zone and
sulphide (sometimes referred to as fresh rock) zone.

Non-mineralized structures, including angles with longitudinal core axis (alpha and
beta angles) as described in the following Section 4.16.10, gouge and/or clays along
structure surfaces, striations and slickensides. When using triple tube core barrels,
see guidelines in Section 4.16.10.

Veining.

Core recovery.

Sampling interval (to be given to the sampler).

4.16.9.2.

Production (Stope Development) Drilling

At the mine production stage, the geology is usually reasonably well understood, and the
logging of holes designed to aid stope development and design does not need to be as
detailed as for exploration. With production drilling, also, speed is usually of the essence.
Hence, only those features that are critical to better definition of stope shape or possible
ground problems must be logged as a minimum, such as mineralization contacts, structures,
and alteration. However, if time and manpower permit, a detailed log for all diamond core
holes is warranted.

4.16.10. STRUCTURAL LOGGING OF CORE


Prior to splitting, sawing, or sampling core, the logging of structures should be completed. In
the absence of site- or project-specific structural logging procedures, the recommended
guidelines described below should be used.

4.16.10.1. Guidelines
The determination of which structures should be logged and how many dip and dip direction
measurements should be recorded is often confusing. Prior to logging, it often helps to first
broadly scan the entire hole and determine which structure types are present (such as quartz
veins), make a rough assessment of how many sets of a particular type are present, and
structures that are important enough to log. It is also important to develop consistent codes
for structure types such as foliation, veins and joints, as well as for geological contacts.
Once detailed structural logging begins:

Record structures systematically in order to avoid omitting important features.


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Record structure dip and dip direction.

For each structure logged, record a dip and dip direction whenever there is a
change in orientation.

For consistent structures, such as bedding, select a nominal distance to record


dip and dip direction, say every 10m (30 ft).

For important structures, such as major faults or veins, be sure also to record the
dips and dip directions of these structures on the graphic portion of the log sheet
so that the information is readily available later when using the log to interpret
sections.

- Always keep the big picture in mind when logging structures 4.16.10.2. Measurement of Dip and Dip Direction
The true bearing of any geological feature, contact or structure can be determined from
oriented core obtained from an inclined hole. Two common approaches are:

Use of a Rocket Launcher.

This device imitates the orientation of the drill hole. It has the advantages that:

The dip and azimuth of a structure can be measured directly off the core.

The true bearing of important geological features can be recorded as they are
logged. This gives the geologist a better understanding of key structural
relationships as logging proceeds.

Input of alpha and beta-angle data into a computer program.

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This approach requires measurement of the following:

Alpha and beta angles of the structures.


The azimuth and dip (inclination) of the drill hole.

Several computer programs such as DIPS, GEOTECH (now a module in GEOACCESS


2000), or modules of Vulcan or MEDSystem can be used to calculate (and plot) the true
dip, azimuth and true dip direction of the logged structures. The following diagram shows how
to measure alpha and beta angles off core:

- The convention for the reference line is BOTTOM OF CORE -

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4.16.11. GEOTECHNICAL LOGGING OF CORE


Each mine site or advanced project will have its own requirements for collecting geotechnical
data and information, and these may be obtained from the geotechnical engineer, the mine
superintendent, or the projects chief engineer.
At operating mines, oriented drill core can be very useful for determining ground conditions for
mine planning. It is important, therefore, that the mine superintendent or chief engineer be
made aware when oriented core holes are being drilled. This is in case the mine engineers
and planners want geotechnical data from the holes, since these data must be obtained
before splitting and sampling of the core.

4.16.12. CORE SAMPLING FOR ASSAY


Sampling of drill core is performed after all logging and marking-up has been completed. It
involves either splitting or sawing the core and sending half to the laboratory for assay or, in
some cases, assaying the whole core. Sampling is typically performed by a sampler or
another technician working under the direct supervision of the Geologist.

4.16.12.1. Sample Interval


Sample intervals should be selected based on established site-specific or project-specific
procedures for sampling drill core. In the absence of such procedures, the following is
recommended:

Logging must be completed prior to selecting sample intervals.

All diamond core should be sampled for assaying throughout the entire hole, even if
in waste rock, except by direction from the Geology Superintendent.

A geologist should always determine and mark-up the sample intervals.

As a general rule, sample interval breaks should respect the contacts between
significant geologic units or zones based on:

Mineralization.
Rock type.

For example, a mineralized quartz vein is logged from 93.7m to 95.6m.


Sampling intervals (based on 1m sampling) are:
92.0 to 93.0m
93.0 to 93.7m

93.7 to 94.7m
94.7 to 95.6m

95.6 to 96.0m
96.0 to 97.0m

Except where breaks are necessary because of geology, sample intervals are
commonly set at regular 1.0m or 2.0m lengths (2.0 ft or 5.0 ft in the United States).

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Except under special circumstances, the minimum sample interval length should not
be less than 0.25m (0.50 ft in the United States).

In order to avoid contamination between ore and waste, sample interval breaks should
be marked just outside of the ore contact in the waste.

In order to avoid confusion in marking core, the colour used to note sample intervals
should not be used for any other marks.

4.16.12.2. Core Splitting or Sawing


The overall purpose of a drilling program or the specific purpose of a single hole generally
determines how a hole will be sampled for assay. Core from exploration and predevelopment drilling programs is almost always split or sawn prior to assay. This practice
retains half of the core, which then can be used for check sampling, metallurgical testing,
petrographic analysis, or simply for future geological reference.
Depending on the reason for drilling a particular hole, core may not be split or sawn before it
is assayed or used for other technical analyses. Examples include underground production
(stope definition) holes, geotechnical holes drilled for collection of samples for laboratory
strength testing, holes drilled for density determinations, certain metallurgical test holes and
diamond core holes drilled for grade control purposes in open pits.

4.16.12.3. Core Sawing


Core sawing generally is the preferred method for sampling diamond core for assay. Sawing
is performed using one of the various diamond saws available on the market. For large
projects, greater efficiencies can be achieved by using a fully automated saw, as shown
below:

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Automated Diamond Saw

Outlined below is the procedure which should be followed when cutting core with a saw:

Be familiar with the standard operating procedure for using a diamond saw (an
example is shown in Appendix 4-3).

Lay the core trays out in the order they are to be cut.

Check that the core has a line drawn along its length by the geologist, indicating the
cutting position. This may be different from the reference line used in core orientation.

Check that there are arrows along the line that indicate the down-hole direction.

The cut should be placed 5mm to the left of the line (when holding the line uppermost
and the arrow pointing away from you) and should follow the line consistently.

Place both halves of the cut core back together in the tray.

4.16.12.4. Core Splitting


The diamond saw is the industry-preferred method for obtaining samples from core. A
conventional screw-type or hydraulic core splitter can also be used to split core for assay in
the early stages of a very remote project where access to electrical power is limited.

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Conventional screw-type or hydraulic splitters break the core between two hardened knife
blades. In very competent rock such as granites, monzonites, or other intrusives, nearly
identical core halves can be obtained with these traditional tools. However, when attempting
to split core that has been drilled through bedded or foliated rock, conventional splitters tend
to induce fracturing along the weaker bedding and foliation planes, and the core is often
broken into disc-shaped pieces or reduced to fragments or rubble.
Care must be taken in certain cases when rock quality or mineralogy may cause sample loss
in the form of sludge into the water basin beneath the diamond saw. Under these conditions,
core splitting is absolutely necessary in place of sawing.

4.16.12.5. Collection of Core Samples


It is best to separate core sawing or splitting activities from the removal and bagging of
samples in order to avoid errors. The following are recommended guidelines for removal and
bagging of core from the trays/boxes:

Use pre-numbered sample bags.

A Sample Manifest must be prepared for each drill hole that includes the following:

A listing of the assay split (subsample) numbers that corresponds to the numbers
written on the sample bags.

Alongside the sample numbers, the sample interval corresponding to that sample.

Slots reserved on the sample list every 20th sample number for the insertion of a
blank core sample (see Section 7, QA/QC for ASSAYING AND SAMPLING).

Clear, concise instructions for sample preparation and analysis.

Always sample the left side of the core (the one without the marked line).

For mineralized core, place a plastic bag inside the calico or canvas bag to prevent
gold or other metal loss through the pores in the bag.

4.16.12.6. Standards (SRMs) and Blanks


The insertion of standard (SRM) and blank samples into the sample preparation and
analytical stream is an excellent way to monitor laboratory accuracy. Although a given
Barrick property may have its own set of guidelines for submitting standards and blanks with
ordinary samples, a recommended industry-accepted procedure is outlined in Section 7,
QA/QC for ASSAYING AND SAMPLING, of this reference volume.

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4.16.12.7. Sample Dispatch


Careless dispatch of samples to the laboratory is a common source of problems, and these
include lost samples, incorrect sample numbers and damage of samples during transport.
The recommended guidelines for proper dispatch of samples are:

Samples should not be dispatched until the numbers on the sample sacks are
checked against the Sample Manifest in order to account for all samples.

Dispatch the unprepared primary samples, check assay splits (if any), SRM pulp splits
and blank samples to the laboratory.

Fax a dispatch sheet to the laboratory before the end of shift.

Sample rejects (field residues) should be promptly transported to the appropriate


storage area or sample storage farm (Australia).

4.16.13. CHECK SAMPLING AND ASSAYING


For every diamond drilling program, 2-5% of the samples are checked as part of the QA/QC
program:

a) Check Assaying
This is required in order to monitor potential assay bias at the primary laboratory. A
selected number of pulps from the assay splits (subsamples) analyzed by the primary
laboratory are sent to a second laboratory for re-assay.

b) Check Sampling
This is required in order to verify that the assay subsample that is split from the original
sample is representative of that sample.
Instructions for performing Check Assaying and Sampling are outlined in Section 7, QA/QC
for ASSAYING AND SAMPLING, of this reference volume.

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APPENDICES

APPENDIX 4-1
CONTROL OF HOLE DEVIATION
INTRODUCTION
Drill holes deviate in both dip and azimuth. The course of a drill hole is affected by ground
conditions, down-hole equipment and operator techniques.
The ground conditions that affect the course of a hole are angle of incidence of the bit to the
bedding or schistosity, variations in hardness of rock layers and erosion of soft formations by
drilling fluids.
Aspects of down-hole equipment which can influence the course of a diamond drill hole
include the bit profile and the core barrel design or configuration. In RC drilling, the number,
weight and location of stabilizers and subs have an influence.
The driller can cause holes to deviate from their intended course by applying too much downpressure (weight) on the bit, by continuing to drill too long with a worn bit, or by tolerating
excessive vibration in the drill string when drilling soft formations.
Two methods are available to direct the drill hole to the target zone. The first is to make use of
natural factors or drilling techniques. The second is to change the course of the hole artificially
by wedging.
NATURAL DIRECTIONAL CONTROL
The geologist should first check what hole deviation occurred in any earlier drilling in the area
before siting the hole and determining its angle. Consultation with the drilling contractor at this
time is essential, as his experience in deviation control will be required to get the hole to its
target. As a general rule, the larger the diameter of the hole, the straighter it should be. The
cost of the larger diameter hole must be weighed against the necessity for achieving the
straightest possible hole.
Once the hole has been collared, the following equipment and techniques will assist to keep
the hole straight:

An internal step bit


A long core barrel
A full hole or ribbed core barrel
A new rather than worn core barrel
A back-end reamer shell
Higher rotation speed (without undue vibration)
A new bit rather than a worn bit
Limiting the weight on the bit (less than 1000 kg for BQ, 2000 kg for NQ)

Hole flattening may be induced by reversing the above. Hole steepening is more difficult, but
may be achieved by use of a heavy barrel and appropriately placed stabilizers.

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Frequent hole surveys are essential to keep geologist and driller aware of the course of the
hole, and to initiate corrective measures if necessary.
ARTIFICIAL DIRECTIONAL CONTROL
Methods of correcting an off-course hole are arc cutting, wedging or using a down hole-motor.
Because arc cutting is seldom used today, no description is provided for this method.
Wedging a hole can achieve a maximum of about 1.5o deflection per wedge, and although
repeated wedgings are an option, proper minimum intervals between wedges must be
maintained to avoid a severe a dog leg in the hole.
There are three types of wedge:
The Casing wedge is simple. Because the wedge is screwed on to the bottom of the casing,
a reduction in hole size is required. After setting the wedge, drilling continues normally with
the wedge deflecting the smaller-diameter hole.
The Hall Rowe wedge consists of a steel deflecting wedge which remains in the hole. A
drive wedge is first placed in the hole at the appropriate depth and its orientation checked.
The steel deflecting wedge is set at the surface so that when its lower end mates with the
drive wedge, it will be at the required orientation. The deflecting wedge is lowered into place
on the rod line and detached by shearing brass rivets. Drilling off the wedge is done initially
with a bull nose non-core bit for approximately one metre. The hole is then reamed to full size,
and drilling can continue with the full-size bit. A number of trips into and out of the hole are
necessary. The complete wedging operation can mean a delay of two or more shifts
depending on the depth of the hole and the competence of the drill crew. A disadvantage with
this wedge is that some 4 to 5 metres of original hole are lost.
The Clappison Retrievable wedge has several advantages over the Hall Rowe wedge.
These are:

Low original cost.

No steel left down the hole.

Capacity for multiple use at 3-meter intervals.

Wedging takes place at the bottom of the hole, with no loss of sampling ability.

Speed of installation (at 300m, setting of the wedge and a 3m hole advance takes
about one and a half shifts).

The equipment consists of a wedging assembly and a reaming assembly. The operation
consists of lowering the wedging assembly, orienting the deflecting wedge and locking it in
position, and drilling a pilot hole for 1.5m. The full assembly is then retrieved from the hole.
The reaming assembly is lowered and the pilot hole reamed to full gauge. Wedge orientation
is achieved by alignment clamps, acid etch method, mule shoe or Unger device.
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The simple and inexpensive Unger device consists of an orientation sub attached to the
wedge. A steel rod (similar to an inverted billiard cue) with a wad punch on the tip is lowered
on the wire-line to obtain a symbol from the orientation disc. The wedge can be rotated until
the symbol from the wad punch indicates the wedge is in its intended orientation.
Bottom Hole Motors The Dyna-drill and the Navi-drill are both bottom hole turbine units
with a non-core bit attached to the drill string (which does not rotate). Drilling fluid is pumped
down the drill rods causing the turbine rotor, with the bit attached, to rotate and the hole to
advance. By incorporating a bent sub above the tool, a lateral force between the tool and the
rock formation causes the hole to develop an arc. The Unger device can be used to orient the
bent sub and therefore the course of the arc that is cut by the bit.

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APPENDIX 4-2
MAXIMIZING CORE RECOVERY
Maximum penetration rates and high core recovery are not necessarily complementary. To
maximize penetration, the driller uses various methods that are not necessarily independent
of each other. These are:

Use of longer wireline core barrels.


Drilling with smallest possible bit size.
Use of narrow kerf, multi-step bits.
Drilling using higher gear ratios or engine speed to give higher rotational speeds.
Applying greater down-pressure.
Us of water only or drilling fluids with low solids content.

Core Loss
There are three main ways in which core is lost:

Soft core (or loosely held material held in a softer matrix) is washed away.

The core meets resistance to entry into the core barrel inner tube. This can be the
result of an undetected core blockage caused by a piece core that jams and does not
feed into the inner tube. If drilling continues while core is jammed, core below the jam
is ground to rubble by the bit.

Core does not remain in the inner tube when pulled.

Geologist or Engineer Action


To reduce core loss in wireline drilling, the Geologist or Engineer should:

Design the contract accordingly. This includes:

Studying core from earlier drilling.

Examining drillers logs from earlier drilling.

Specifying sizes to be drilled. Larger size core enhances recovery, permits


installation of casing and reduction to a smaller core size, and reduces reaming,
but at a higher cost.

Specify equipment that enhances core recovery, particularly barrel or bit type.

Specify that on-site expertise be available during drilling.

Consider incentive payments related to core recovery, or alternatively combine


hourly and advance (meters or feet drilled) payments.
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Consult the driller, or his supervisor, when problems arise before taking drastic action.
While drillers typically are more experienced and should know what steps to take to
reduce core loss, often they may be reluctant to implement them.

Be familiar with the equipment and techniques available to the driller to reduce loss.

Driller Action
To reduce core loss in drilling, the driller should:

Use a face discharge bit. This type has holes that direct the water or other drilling fluid
to the face of the bit, in lieu of conventional waterways, which allow drilling fluid to
wash the surface of the core, causing erosion of soft core as it enters the inner tube. A
face discharge bit is normally standard with a triple tube barrel, and is a major reason
for the better core recovery attributed to the triple tube barrel.

Reduce fluid circulation to a safe minimum to flush cuttings away, thus reducing
washing of the core.

Maximize advance per revolution to reduce time available for washing core.

Use mud to reduce scouring and washing of core.

Reduce the gap between the core lifter case and bit.

Use a shorter core barrel (say 1.5m). A shorter barrel is better stabilized, and will
frequently result in longer drilling runs than a 3m barrel.

Adjust the shut-off valve to make it easier to detect core blockage by the rise in fluid
pressure.

Use chromed or stainless steel inner tubes. This reduces the friction of core sliding up
the tube.

Use soluble oil (Ro-lub or Torq-trim) to reduce friction of core sliding up the tube,
provided it is not a contaminant to the material being sampled.

Pull the inner tube at frequent intervals, e.g. 50cm, or when water pressure rises,
engine labours, penetration rate drops, or bit weight increases.

Check the inner tube for damage when out of the hole.

Check that core lifter is not too tight.

Ensure that inner tube is latched before coring is commenced.

Consider using a basket-type core lifter.

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Consider dry blocking, which consists of spinning the rods for a short interval without
circulating drilling fluid so that the cuttings wedge the core solidly in the bit.

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APPENDIX 4-3
EXAMPLE OF STANDARD OPERATING PROCEDURE FOR USING A DIAMOND SAW
1.

Inspect the core saw mechanisms and blade for any defects or hazards.

2.

Make sure that you wear a full-face shield or goggles (safety glasses are not
acceptable), a PVC bib or raincoat, and hearing protection (earplugs or earmuffs).
When wearing goggles and dust mask, change the dust mask regularly when it
becomes wet or dusty.

3.

Make sure that all belts, clothing, jewellery, and hair are fastened/tucked away so that
there is no danger of any items getting entangled with the core saw machinery. Rings
should be removed from fingers before cutting.

4.

Lay the core trays out in the order that they are to be cut.

5.

Inspect and check the oil and water in the generator, and top off as necessary. If the
generator is cold, it should be preheated before starting.

6.

Make sure that the water supply (lubrication) to the core saw is turned on.

7.

After inspecting the core saw, and checking that the blade is free and not restricted by
any core or rubble in the cradle, turn it on.

8.

Place the core in the cradle and commence cutting along side the orientation mark. Do
not push too hard otherwise the blade will start to dig in. If this happens pull the cradle
and core back towards you. If the blade stops, turn the saw off and remove the core.

Always allow the blade time to cut the core.


9.

When cutting the metre marks on the core, make sure that the core is in the side
cradles and held firmly, and that hands are kept away from the blade.

10.

The core should be cut 5mm to the LEFT of the reference line (when you are holding
the core with the reference line facing up, and the arrow is pointing away from you).
The section of core with the reference line STAYS in the core tray, the unmarked core
will be sent off for assaying. After cutting the core, put it back in the original position in
the core tray (2 pieces together, orientation mark at the top).

11.

If you are unfamiliar with the rock type being cut, or with operating a core saw, work
slowly until you have gained confidence with the operation.

12.

Do not hesitate to ask any questions, no matter how minor they may seem.

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BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 5

GEOTECHNICAL AND GEOLOGICAL


DATA COLLECTION

Section 5 GEOTECHNICAL AND GEOLOGICAL DATA


COLLECTION
5.1. INTRODUCTION ...................................................................................................................5-1
5.2. GEOTECHNICAL DATA COLLECTION FROM DRILL CORE ...........................................5-2
5.2.1.GEOTECHNICAL LOGGING............................................................................................5-2
5.2.1.1. Description of Geotechnical Parameters.................................................................5-3
5.2.1.2. Geotechnical Logging Procedures ..........................................................................5-9
5.2.2.GEOTECHNICAL CORE PHOTOGRAPHY .....................................................................5-9
5.2.3.COLLECTION OF GEOTECHNICAL SAMPLES............................................................5-10
5.3. GEOTECHNICAL DATA COLLECTION FROM MAPPING...............................................5-12
5.3.1.DETAILED LINE MAPPING ............................................................................................5-12
5.3.2.CELL MAPPING..............................................................................................................5-13
5.4. GEOLOGIC DATA COLLECTION FROM DRILL CORE...................................................5-13
5.4.1.CORE LOGGING ............................................................................................................5-13
5.4.1.1. General Logging Procedures ................................................................................5-13
5.4.1.2. Structural Logging .................................................................................................5-14
5.4.1.3. Determination of Fracture Orientation...................................................................5-15
5.4.1.4. Input Of Alpha and Beta Angle Data into a Computer Program .........................5-15
5.4.1.5. Lithology, Alteration and Mineralization Logging ..................................................5-15
5.4.2.CORE PHOTOGRAPHY FOR GEOLOGY .....................................................................5-16
5.4.3.CORE SAMPLING ..........................................................................................................5-17
5.5. GEOLOGIC DATA COLLECTION FROM RC CHIPS........................................................5-18
5.6. GEOLOGICAL MAPPING...................................................................................................5-18
5.7

REFERENCES ....................................................................................................................5-19

APPENDIX
Appendix 5-1

Example of Geotechnical Diamond Drill Core Log Sheet

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5.1. INTRODUCTION
This section addresses the collection of geotechnical and geologic data from drill core, RC
cuttings, and open pit and underground geologic mapping and sampling. Although
geotechnical data are in fact a subset of the broader category termed geological data, the
methods used and the degree of detail required in the collection of geotechnical data differ, so
this subject is addressed separately in this section. It is important to understand that, for
geotechnical applications, the focus should be on the identification of rock characteristics that
may impact slope stability or underground opening size during the operational life of the mine.
In order to approach this problem correctly, the general geology of the deposit, as well as the
surrounding host rock and structural setting, must be understood. For example, for a
porphyry copper deposit, a successful slope design is a function of an achievable bench
design. In this case, orientation of discrete fracture sets, length and spacing characteristics
and filling types may be the most important geotechnical features. However, for a
disseminated gold deposit in sedimentary host rocks, zones of intense argillic alteration may
be the most important geotechnical feature affecting slope stability and design of underground
openings. The basic approach for collection of geotechnical data will be somewhat different
for each of these two cases.
This reference volume does not address the collection of geologic data that typically takes
place prior to initial drilling in the earliest stages of exploration, and which includes activities
such as reconnaissance sampling and mapping, geochemical soil or rock chip sampling and
geophysical surveys. These data, while critical to exploration success, generally play a minor
role in subsequent resource modeling and ore reserve estimation.
As described in Sections 4.16.11 and 11.2.1 of this reference volume, the collection of
geotechnical data is very important for the determination of open pit slope angles and the
design of bench configurations, and for determining the maximum opening sizes of
underground workings and the spacing between sublevels. The descriptions and procedures
described below for the collection of geotechnical data have been designed to provide the
user with the basic tools for gathering and presenting meaningful information. It is not the
intention of this reference volume to turn Barrick geologists and engineers into geotechnical
engineers, nor to replace the third party consultant or geotechnical specialist when it comes to
making the final decisions on critical issues. Rather, it is intended to ensure consistent
collection of initial data (and most often this is the responsibility of the Project Geologist), and
to provide the mining engineers involved in project development with sufficient information to
make an early assessment of possible geotechnical problems.
Some of the descriptions of procedures provided in this section can also be found in other
sections of this reference volume. The purpose of this duplication is for ease of reference. A
discussion of the interpretation of geotechnical data by third party consultants or Barrick inhouse geotechnical specialists, and a description of the industry-accepted methods of rock
mass characterization and excavation design, can be found in the Appendix to Section 11,
MINING DATA COLLECTION, SELECTION OF MINING METHOD, AND MINE PLANNING.

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5.2. GEOTECHNICAL DATA COLLECTION FROM DRILL CORE


Once it has been collected, the condition of diamond drill core can only deteriorate. This can
occur as a result of badly altered core simply drying and disintegrating into rubble, the
oxidation of sulphides and other minerals that are in disequilibrium with the surface
environment, and from damage due to normal handling and transfer. For this reason, it is
essential that the core is logged and geotechnical data are collected as soon as possible.
Ideally this will occur while the core is still in the split inner tube, if triple-tube core barrels are
in use. The use of triple-tube core barrels is strongly recommended if the ground being drilled
is badly broken, weak in strength, and/or has high clay content. Steps must be taken to
ensure that minimal disturbance of the core occurs prior to logging so that a complete sample
can be obtained. If at all possible, core should not be deliberately broken prior to
geotechnical logging, including any breaking required to fit the core into a core box or tray.
However, if conditions are such that this cannot be avoided, the unnatural breaks should be
clearly marked in the core box.
The general order for collecting both geotechnical and geological data from diamond drill core
is as follows:

Log geotechnical data before any core is removed from split inner tubes (if triple-tube
core barrels are in use).

Photograph the core for geotechnical records.

Remove core samples for geotechnical laboratory testing.

Transfer remaining core to boxes or core trays, leaving room for the return of the
geotechnical samples from the laboratory and marking the core where it has been
deliberately broken.

Complete standard geological logging.

Photograph the core wet for geological records.

Perform density determinations.

Prepare core as appropriate for sampling for assay and metallurgical testing.

5.2.1.

GEOTECHNICAL LOGGING

As discussed above, drill core recovered via triple-tube core barrels is best logged and
marked up for sampling after each drill run and before the core is removed from the innermost
(split) tube. This ensures that no core is lost or disturbed during transfer to a core box or tray
prior to logging. To avoid rig stand-by time, the drilling contractor will need to have enough
sets of split inner tubes to allow time for the logging and sampling, thus enabling the driller to
continue drilling without significant delays.

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After the removal of each run of core from the hole, the triple-tube split should be carefully
removed from the inner tube. The core-filled split inner tube should then be placed on a rack
and the top split should be removed carefully so that the remaining core is left undisturbed in
the bottom split for logging. In cold weather environments, if the core is to be sampled for
geotechnical laboratory testing, it should be protected from freezing. This can be done by
covering the core with a large plastic sheet and keeping it warm using a portable gas heater.
Prior to geotechnical logging, carefully fit together any broken sections of core. Samples for
geotechnical laboratory testing should be very carefully removed, then wrapped in plastic food
wrap and aluminum foil. Samples with high clay content, usually destined for triaxial testing,
will require extreme care. Be sure to mark the drill interval, rock type and nature of the
sample on the outer layer of wrapping!
There has been interest in the determination of in-situ rock fragment size distribution from drill
core at some mines in recent years for use in both blasting and leachability studies. This
trend is likely to continue as more mining companies realize the benefits of these data. As
the data required for this type of analysis are an extension of the data required for
determination of RQD value, a summary of the data collection procedure is provided in the
following section.

5.2.1.1. Description of Geotechnical Parameters


The following parameters should be logged for each drill run. As data collection procedures
vary somewhat industry-wide, it is important to document the procedures being used, and
then to use the same procedure throughout the project.
Recovery - The total length of core (expressed as a measured length in metres or feet)
recovered for each run drilled. Core loss may occur due to various rock conditions or drilling
problems, such as an intersected geologic void, an inner tube mislatch, core blockage, or
grinding during drilling. It is the drillers responsibility to record any unusual conditions that
occur during the course of drilling. See Section 4.16.5 for a more comprehensive description
of procedures for recording core recovery.
Fracture Frequency - The number of natural structural discontinuities over the run expressed
per metre or foot of advance. Unnatural drill breaks, such as those that occur at the end of
the run when the core is broken off at the bottom of the hole to allow its removal, should be
ignored. A detailed fracture count is necessary only when there are relatively few structures
in the core. For more highly fractured rock, it may be acceptable to make a visual estimate.
The illustration below portrays core with several different fracture frequencies and may be
helpful in the fracture frequency estimation process. A large default number, such as 50,
should be recorded for highly fractured drill intervals.

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Fracture Frequency Estimation Figure

RQD Defined as Rock Quality Designation, RQD represents the percentage of a drill core
interval that is composed of whole pieces with lengths greater than 10cm (4in), excluding
drilling breaks, measured along the centerline of the core. Material with an estimated rock
hardness designation of less than 2 should be assigned an RQD value of zero. Core intervals
composed of soft rock generally coincide with zones of fault gouge, intensely-argillized rock,
or highly weathered, near surface rock. Deere and Deere (1988) provide recent commentary
on the practical use of RQD.

Procedure for Measurement and Calculation of RQD

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Size Distribution Data Determinations of additional minimum-length cut-off classes may be


recorded for the determination of a more precise fragment size distribution of the rock in
question. These are calculated in the same manner as RQD, except that the minimum
required length of individual pieces is greater. For example, the standard RQD value may be
described as RQD10, which represents an RQD value based on a 10-cm minimum piece
length. Similarly, an RQD20 designation would represent an RQD value based on a 20-cm
minimum piece length. These data should be collected for several different length cut-off
classes, which should remain the same throughout the life of the project. In addition, the
length of the longest piece should be recorded.
Core Orientation If the core has been oriented, it is possible to determine the true dip and
dip direction of structural discontinuities from measurement of alpha () and beta () angles.
Alpha is the acute angle between the plane of the discontinuity and the core axis. Beta is the
angle measured clockwise, looking down the hole, from the orientation line marked on the
bottom of the core to the bottom of the ellipse created by the intersecting discontinuity. The
following diagram shows how to measure alpha and beta angles from core:

Core Orientation Illustration

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Fracture Spacing - The measure of true spacing between structures (faults, fractures, joints,
veins, and bedding planes) of the same structural set. Where the intersection between the
structures and the core axis is oblique, spacing = L sin , where L = Length along the
orientation reference line, and = the acute angle between the discontinuity plane and the
core axis as determined for orientation.
Persistence - This refers to the persistence of a particular discontinuity along strike and/or
down dip. It usually cannot be determined from a single drill hole, unless the structure in
question can be correlated reasonably with other data, such as pit bench (detail line) mapping
or underground mapping.
Roughness - This parameter describes the surface of the structural discontinuity with respect
to two categories: planarity and smoothness. Planarity is classified as planar, stepped,
irregular, undulating, or curved. Smoothness is classified as slickensided, polished, smooth,
or rough.

Roughness Profiles

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Wall Rock Strength - This parameter is the same as overall rock strength as discussed
below, and is important only if the material in the wall of the discontinuity differs from the
overall rock strength. This can occur when alteration or weathering halos are present (see
Table of Soil and Rock Strength Classification following definition of Rock Strength).
True Width (Aperture) This is the measured true width of a structural discontinuity
containing a filling such as quartz, calcite or barite, or fault gouge. The measurement is taken
normal to the wall(s) of the structure and may include void space if the extent of the void can
be determined in the core or from the drillers shift reports. Typically, no true width is
recorded for structures such as non-filled fractures or fractures with only slickenside breaks.
Filling Type - A description of the material, if any, that fills the discontinuity.
Seepage - Evidence of water flow from structures based on core or drilling shift reports
should be recorded. Reported water flow can sometimes be correlated to individual
structures based on the presence of vugs, voids or other signs of dissolution.
Number of Structural Sets This differs from structure frequency in that it is the
determination of the number of structural sets (two or more joints, faults, fractures, or veins
having a similar attitude) recognizable within the core.
Structural Block Size - Based on the number of structure sets, the spacing of the sets, the
persistence of the structure sets and individual major structures, and orientations of the
structure sets, it may be possible to define structural blocks and estimate the size of these
blocks.
Rock Type These data are typically recorded as part of detailed geological logging. For
geotechnical and development engineering purposes, it is often necessary for the geologists
to combine rock types into more general zones, often referred to as engineering rock types.
The early understanding of the variations in rock types across a deposit is very important for
preliminary slope stability evaluations and bench configurations.
Degree of Weathering Also recorded during detailed geologic logging, the following simple
index is provided for making a visual assessment of the degree of weathering.

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Rock Weathering Classification


CODE
W1

DESCRIPTION
Fresh

W2

Slightly weathered

W3

Moderately weathered

W4

Highly weathered

W5

Completely weathered

W6

Residual soil

DEFINITION
Parent rock shows no discolouration, loss of strength or any
other weathering effects.
Rock may be slightly discoloured, particularly adjacent to
defects, which may be open and have slightly discoloured
surfaces; rock is not noticeably weaker than the fresh rock.
Rock is discoloured; defects may be open and have
discoloured surfaces with alteration starting to penetrate
inwards; intact rock is noticeably weaker that the fresh rock.
Rock is discoloured; defects may be open, clay rich and
have discoloured surfaces and the original fabric of the rock
near to the defects may be altered. Alteration penetrates
deeply inwards but less altered fragments are still present.
Rock is discoloured and changed to a soil but original fabric
is mainly preserved. The properties of the soil depend in
part on the nature of the parent rock.
Rock is completely changed to a soil and all original rock
fabric has been destroyed.

Rock Strength - A rough guide to rock strength is shown below. Note that index tests must
not be performed on any core that will subsequently be sent for laboratory testing.

Soil and Rock Strength Classification


CODE
X1

DESCRIPTION
Very soft soil

DEFINITION
Easily penetrated several centimetres by fist

UCS RANGE
(MPa)
<0.025

X2

Soft soil

Easily penetrated several centimetres by thumb

0.025 0.05

X3

Firm soil

0.05 0.10

X4

Stiff soil

X5

Very stiff soil

Can be penetrated several centimetres by thumb with


moderate effort
Readily indented by thumb but penetrated only with great
effort
Readily indented by thumb nail

H1

Very weak rock

May be broken in hand with difficulty

0.45 1.25

H2

Weak rock

Cuts easily with knife

1.25 5.0

H3

Difficult to cut with knife pick indents deeply

5.0 12.5

Cannot be cut with knife pick indents to 5mm

12.5 50

H5

Moderately weak
rock
Moderately
strong rock
Strong rock

Requires one hammer blow to break

50 100

H6

Very strong rock

Requires several hammer blows to break

100 200

H7

Extremely hard
rock

Rings when hit with a hammer

>200

H4

0.10 - 0.2
0.2 0.45

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5.2.1.2. Geotechnical Logging Procedures


The procedures for the logging of geotechnical parameters may vary from one site to another,
depending on the particular geotechnical consulting firm retained to assist with data collection
and analysis, or the preferences of the on-site Barrick geotechnical specialist. In the event
that other site-specific procedures are not in place, the following are provided as a guide for
the geologist or engineer logging the hole.
1. It is an essential component of detailed geotechnical core logging to gather as much
factual information as possible. It is also important to be consistent in the logging
procedure. When several geologists are involved in the geotechnical logging, they
should gather periodically to compare procedures, so that the entire team is
calibrated to the same standards and procedures.
2. Every natural structural break must be considered. If the origin of a break is unclear, it
should be assumed to be natural. Clearly penetrative but unbroken features such as
shears filled with consolidated gouge or partially healed veins should be included,
particularly if such structures appear to be weaker than the surrounding rock mass.
3. It is important that the person logging the core include on the logging sheet only those
parameters and features present in the core. If a particular parameter cannot be
discerned with reasonable certainty, it should not be included.

- Informed estimates are acceptable: guesses are not 4. Geological information should be recorded only if it has geotechnical significance.
The logger should remember that a separate geological log will be prepared after
geotechnical logging is completed.
A suggested form to use for geotechnical loggings is included in Appendix 5-1. Note that the
Comments column on the log form sheet is very small. This is intentional in order to
emphasise the logging of concise, factual data. Where an extended comment is necessary
(such as recording the removal of a sample for laboratory testing), this information can be
included in the margin of the form. Note: never write important information on the back of the
sheet since it is easy for this information to be lost.

5.2.2.

GEOTECHNICAL CORE PHOTOGRAPHY

Prior to the collection of laboratory samples for geotechnical testing, the core should be
photographed to allow maximum enhancement of discontinuities in the photos. The core may
be photographed dry or wet, whichever visually enhances the most important features in the
core. It is best to do this while the core is still undisturbed in the split tubes, especially if poor
ground conditions have been encountered.
The photos can be taken using either a
conventional camera or a digital camera. The advantage of a digital camera is that the digital
images can be stored in a permanent directory as .jpg files and, if necessary, the images can
be cropped and plotted using a program such as CorelDraw.
The following steps can enhance the quality of the photos:

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Avoid direct sunlight on core to prevent harsh shadows and reflection.

Orient the camera at right angles to the centre point of the split tube.

Fill the entire camera viewfinder with the core.

When using a conventional camera with interchangeable lenses, a 28-mm wide-angle


lens provides the best undistorted close-up view of the core.

It is important to be consistent in the photographic procedure, so that persons examining the


photographs later will be able to determine basic information, such as which end of the box is
toward the top of the hole. The drill hole number, box number and from-to drill run depths
should be included in each photo. End-of-run drill hole depth blocks should be visible.

5.2.3.

COLLECTION OF GEOTECHNICAL SAMPLES

Samples for laboratory testing should be selected as soon as possible after drilling, while the
core is as close to in-situ condition as possible. Generally, the stronger and more competent
the rock, the longer the available time for sampling, provided the core is protected from
extremes of weather. This also applies to samples other than drill core (surface samples and
samples collected from open pit bench faces or from underground workings). Generally, the
greatest threats to the integrity of the samples after collection are:

Extreme temperature variation.


Desiccation.
Freezing.
Impact.

Laboratory tests to determine physical properties of intact rock samples may include uniaxial
compression test, triaxial test, tensile test, direct shear test, and a combined test for Youngs
Modulus (E) and Poissons Ratio (). Other tests may include drillability of intact rock. It is
important that the core loggers have a basic understanding of the type of tests that are likely
to be used for the core samples at that site, so that the specific requirements of sample size
and quality are understood. A visit to a local geotechnical testing laboratory may be in order,
if there is one within a reasonable distance from the site.
According to ISRM suggested methods, reliable results from a minimum of five discrete
samples for each test type are adequate (for each rock type). Since it is common for a
number of samples to break either during shipment, during preparation, or during the actual
testing, at least two to three times the number of core samples required for the testing
program should be collected at the mine or project site. The number of samples submitted for
laboratory testing should reflect the observed variability of the material, as well as its relative
importance as a potential stability problem in pit wall exposures or underground openings. A
rock type that is fairly localized may require only a few successful sample tests, whereas a
rock type with a range of alteration intensities that will occur throughout the mine may require
a number of tests for each alteration type.

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Sampling must be undertaken in a manner that does not compromise the integrity of
the subsequent test work. The following procedure is recommended to ensure that
the samples collected are suitable for testing:

Unless specific tests on discontinuities are being conducted, samples should be as


free of discontinuities as is possible. This is because when a normal load is applied to
a specimen containing fractures in a uniaxial compression or disc tension test, the
sample typically breaks along one or more of those weaker fracture surfaces, rather
than through intact rock. As the intent of the test is to estimate the intact strength of
the rock, such test results cannot be used.
- It is always better to have a smaller number of high quality samples for testing,
rather than a larger number of poor samples! -

Samples should be collected for testing as soon as possible after the core is removed
from the hole or the samples are taken from pit bench or underground working faces.
Care should be taken to ensure that the samples are clearly labelled with a permanent
marker at points positioned 120 around the core or hand specimen. Whiteout, paint,
or engraving tools should not be used for labelling. The label should include the
sample number and, if the sample is core, the hole number, down-hole direction and
depth. The source location of surface samples should also be recorded.

Core samples should have a minimum length to core diameter ratio in the range of
2.5:1 to 3.0:1. For example, for HQ3 core, 180mm should be considered the standard
minimum sample length for sample collection. See Section 4.16.1.5 for standard core
diameters. Sample ends must be flat and perpendicular to the core axis or long axis of
the hand specimen for testing. Core samples may be prepared prior to shipment if a
rock saw is available and it can be done properly. However, as a general rule, it is
preferable to have the samples prepared at a rock mechanics testing facility.

Samples should not be taken from core that has been broken by a hammer or other
percussion means.

For shipment to the test laboratory, packaging requirements vary with the type of test
to be done on the sample. For UCS testing, the individual samples should first be
wrapped in a thin layer of paper, sealed with plastic wrap, and then packed in a
suitable strong container surrounded by sufficient packing material. The preparation
of porous rock samples, in which moisture content may be significant, should include
several wet paper towels in the wrapping to help preserve the in-situ moisture of the
sample. For triaxial and direct shear testing, the sample should be sealed in several
layers of paraffin and cheesecloth, in order to preserve the in-situ moisture content of
the sample.

It is preferable to go overboard on packaging than to have a shipment of samples


arrive in poor condition. The shipping container should be clearly marked Fragile.
From remote sites, samples should be transported by air if possible. Shipping
samples long distances over rough roads in the back of a pick-up truck or utility

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vehicle should be avoided. For projects in Australia, a plastic esky of 201 to 261
capacity is ideal for shipping samples.

The laboratory chosen to perform the testwork should be a facility registered with the
appropriate Federal or independent testing agency (ASTM in the United States, NATA
in Australia, and ISRM in Canada). The laboratory should also be instructed to
photograph all cores before and after testing, and to indicate on each photo which test
is being performed.

The laboratory should be instructed to return all samples in individually labelled bags
to the project site, so that complete geological logging, density measurements,
assaying and metallurgical testing can take place. Supplying pre-labelled bags for this
purpose when the samples are submitted can help expedite the return of the tested
samples.

5.3. GEOTECHNICAL DATA COLLECTION FROM MAPPING


Geotechnical mapping can take several forms, depending on the desired objectives. The two
forms of mapping described here are detailed line mapping and cell mapping.

5.3.1.

DETAILED LINE MAPPING

This form of geotechnical mapping is based on the same parameters as geotechnical core
logging. The mapping occurs along a single line marked on the wall of the excavation at a
constant height or slope, be it an open pit bench face, underground drift or crosscut face, or
other underground opening or surface excavation. Only those features that intersect the line
are recorded on the map. The main emphasis is on the recording discontinuities. In open
pits, particular attention is paid to those discontinuities whose lengths are on the order of the
bench height, as these are the features (when coupled with orientation measurements) that
will have the greatest impact on slope stability and the determination of slope angles. Good
survey control of the mapped line is required to ensure that the data are recorded in the
correct spatial orientations and relationships. To maintain this control, survey control points
should be placed approximately 30m (100ft) apart. Mapping should be performed at 1m (3-ft)
intervals from a defined starting point on the line, similar to logging core.
Certain geotechnical parameters that are a primary focus in core logging may not be required
as part of the geotechnical mapping. One such parameter is RQD. At first glance it might
seem that RQD could be recorded as a function of geotechnical mapping, as it is based on
the number of structures present in a defined linear distance. However, the blasting required
to establish the pit benches or underground workings can create unnatural localized fractures,
which can skew RQD determinations on open rock faces. The geologist should bear this in
mind before making the decision to include RQD measurements on field mapping sheets.
The remaining parameters recorded in core logging (orientation, spacing, persistence,
roughness, wall strength, aperture, filling, seepage, and number of sets and block size) are
also recorded during geotechnical mapping. Orientation can be measured directly as a dip
and dip direction using a Brunton compass or similar pocket transit. Structure orientations
should always be recorded relative to true north, rather than to mine north. Other

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parameters such as persistence, seepage and block size that are difficult to measure in drill
core are much more obvious in open pits and underground workings, and thus easier to
record during mapping.
Because only those features that intersect the mapping line are recorded, and only at the
point of intersection with the line, the choice of mapping line orientation should take into
account obvious significant features visible in the bench face or underground face or rib. Any
such features that do not intersect mapping lines should be described in map side notes, but
these cannot be included in the data set defined by the mapping line.
In conjunction with geotechnical mapping, a photograph should be taken of the pit bench face
or underground face or rib that is mapped. Although these photos do not record the detail
that is possible when photographing drill core, they do provide a simple and practical visual
record of the structural features. It is important that exposures are clean prior to
photographing, which usually requires washing down of the face or rib with water. However,
extreme caution is warranted when washing down faces or underground backs and ribs,
especially those that contain poor quality rock. Water sprayed for cleaning purposes can
easily dislodge sizeable rock fragments, and even cause significant local rib and back failures
in underground workings.
- Safety is a primary concern when washing and mapping surface and underground
exposures -

5.3.2.

CELL MAPPING

Cell mapping and bench-scale stability analysis are techniques developed by Call & Nicholas,
Inc. (CNI), a geotechnical firm located in Tucson, Arizona. This technique is designed to
allow a statistical approach to analyse the impact of joint sets on open pit bench-scale
stability. Structure set mapping is done utilizing a series of cells, which have a horizontal
dimension on the order of the bench height. Structure data collected include the orientation
and statistical fracture count-length parameters of discrete structure sets identified in each
cell. Mean orientation, lengths and spacings are then determined for each structure set.
Areas within which resident structure sets have a similar orientation are called structural
domains. Structures within each domain have a unique impact on slope stability. A benchscale stability analysis can be conducted that predicts the probability of achieving a desired
catch bench width, given the orientation of the wall, and based on the distribution of joint
orientation, joint length, spacings and probability of occurrence, for each set of joints
observed.

5.4. GEOLOGIC DATA COLLECTION FROM DRILL CORE


5.4.1.

CORE LOGGING

5.4.1.1. General Logging Procedures


All diamond drill cores should be logged prior to splitting, sawing, or sampling for assay. The
degree of logging detail will depend on the local geology and the purpose of the drilling

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program. For example, exploration and pre-development holes typically are logged in greater
detail than production (stope definition) core holes. This is because the geology of a mine is
usually reasonably well understood at the production stage, so that the logging of holes that
are drilled to aid stope development and design does not need to be as detailed. Also, with
production drilling, speed is usually of the essence, so only those features that are critical to
better definition of stope shape or possible ground problems are typically logged in detail.
These features include mineralization contacts, structures, limits to alteration and bedding.
However, if time and manpower permit, a detailed log for all diamond core holes is
recommended. If time and manpower restraints significantly affect the ability to maintain upto-date core logs, computerization of core logging should be seriously considered.
For logging, geologists should use the core log sheet or computerized spreadsheet file that is
standard for the site or project. In the absence of site or project-specific logging procedures,
the following recommended guidelines should be followed:

Check that core mark-up is complete and correct (see Section 4.16.12).
Always wet the core to better reveal colour, alteration, and textural features.
Before logging, briefly examine the entire hole to get a feeling for the overall geology.
Proceed to log in detail.

5.4.1.2. Structural Logging


Both geotechnical logging and the geologic logging of structures focus in detail on the
orientation of structures in core. However, the two methods differ in that geologic structural
logging attempts to tie the structures present in the core into the larger geologic picture,
particularly the relationship of structures to mineralization, whereas geotechnical logging is
more concerned with determining the effects of structure on local ground stability.
As with geotechnical logging, the geologic logging of structures must be completed prior to
splitting, sawing, or sampling core. In the absence of site or project-specific structural logging
procedures, the following recommended guidelines should be used:

The determination of which structures to plot on the graphic portion of the log and to
describe in the log text is often confusing. Prior to logging, it often helps to first
broadly scan the entire hole and determine which structure types are present, develop
a rough idea of how many sets of a particular type are present (such as quartz veins),
and identify structures that are important and require logging. It also helps to use
consistent codes for different structure types, such as foliation, veins, joints, contacts
and bedding.

- Always keep the big picture in mind when logging structures

For the structures selected, record the angle of intersection between the structure and
the longitudinal axis of the core (the angle).

Where bedding is present, select a nominal distance (10m or 30ft) to record the angle
of intersection between the bedding and the longitudinal axis of the core. Abrupt local
changes to bedding should be recorded as required.

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Describe any structure filling (gouge, quartz, calcite or other gangue mineral and/or
sulphides) present in the structures logged.

If the core in the hole is oriented (see Section 4.16.8), the following methods can be used to
determine true dip and dip direction of structures.

5.4.1.3. Determination of Fracture Orientation


A goniometer is used to determine the orientation of open fractures that are intersected in drill
holes. The advantages to using this instrument are:

The dip and azimuth of a structure can be measured directly off the core.

The true bearings of important geological features can be recorded as they are
logged. This gives the geologist a better understanding of key structural relationships
as logging proceeds.

5.4.1.4. Input of Alpha and Beta Angle Data into a Computer Program
This approach requires measurement of the following:

Alpha and beta angles of the structures (see Section 5.2.1.1).


The azimuth and dip (inclination) of the drill hole.

Several computer programs such as DIPS, GEOTECH (now a module in GEOACCESS


2000), or modules of Vulcan or MEDSystem can be used to calculate (and plot) the true
dip, azimuth, and dip direction of the logged structures.

5.4.1.5. Lithology, Alteration and Mineralization Logging


Site or project-specific logging procedures should be followed when logging core from
exploration or pre-development resource definition drill holes. In the absence of these
procedures, it is recommended that at a bare minimum, the following should be logged:

Geological units and lithologies and contacts.

Colour, texture, and fabric.

Alteration.

Mineralization (percentage of sulphides, especially pyrite) in structures and


disseminations. Always try to describe estimates of content as a percentage of
volume (i.e. 10% sulphides or 4% disseminated pyrite, instead of minor to
moderate sulphides, or minor pyrite).

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Contacts between alluvium and bedrock, the base of the zone of complete oxidation
and the mixed (transition) zone, and the mixed (transition) zone and the sulphide
(sometimes referred to as fresh rock) zone.

Non-mineralized structures, including the angles these structures make with the
longitudinal core axis (alpha and beta angles) as described in Section 5.2.1.1, gouge
and/or clays along structure surfaces, and striations or slickensides.

Veining.

Core recovery.

Sampling interval (to be given to sampler).

5.4.2.

CORE PHOTOGRAPHY FOR GEOLOGY

Section 5.2.2 describes the procedure for photographing core for geotechnical purposes. If
the geotechnical photos do not provide the needed detail, a separate set of photos should be
taken after wetting the core in order to highlight rock texture, alteration, and mineralization.
These photos should be taken using either a conventional camera or a digital camera after
geotechnical logging has been completed and the core has been transferred to core boxes or
trays, but prior to splitting, sawing, or sampling. Where practical from a logistical standpoint,
the same approach should be considered for underground production (stope delineation)
holes, especially if whole core from these holes is sent for assay. If site or project-specific
procedures are not in place, the following recommended procedures should be followed:

Do not photograph or record digital images of core until it has been fully marked-up.

Use one photo/image per tray/box.

Prior to photographing or recording digital images, place disposable labels alongside


each tray or box. The labels should clearly indicate the hole number, tray/box
number, the total interval of core in the tray or box (from/to depths), and a scale.

Tips for taking good photos/images:

Wet down the core just before taking photos or images.

Keep the tray out of direct sunlight to prevent harsh shadows and reflection.

Orient the camera at right angles to the centerpoint of the tray or box.

When using a conventional camera, a 28-mm wide-angle lens provides the best
undistorted close-up view of the core.

Fill the entire viewfinder with the box or tray.

Avoid the use of flash since this reflects off wet core surfaces.

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5.4.3.

CORE SAMPLING

Sample intervals should be selected based on established site- or project-specific procedures


for sampling drill core. In the absence of such procedures, the following recommended
procedure should be used:
Logging must be completed prior to selecting sample intervals.
All diamond core should be sampled for assaying throughout the entire hole, even if in
waste rock, unless otherwise directed by the Chief Geologist or Geology
Superintendent.
A geologist should always determine and mark-up the sample intervals.
As a general rule, sample interval breaks should respect the contacts between
significant geologic units or zones based on:

Mineralization.
Rock type.
Alteration.

Example a mineralized quartz vein is logged from 93.7m to 95.6m


Sampling intervals (based on 1m sampling) are:
92.0 to 93.0m
93.0 to 93.7m

93.7 to 94.7m
94.7 to 95.6m

95.6 to 96.0m
96.0 to 97.0m

Except for where breaks are necessary because of geology, sample intervals are
commonly set at regular 1.0m or 2.0m lengths when using the metric system. For
projects in the United States and some other locations, regular sample breaks are
usually 2.0ft and 5.0ft, respectively.

Except for special circumstances, the minimum sample interval length should not be
less than 0.25m (0.50 ft).

Where mineralization can be visually identified, care must be taken to avoid


contamination of lower-grade material with adjacent high-grade at sample breaks. This
is not always possible when dealing with deposits where ore and waste boundaries
are visually indistinguishable, such as acid sulphate and Carlin-type gold deposits.
- At contacts, always minimize mixing of waste with ore samples,
but
DO NOT MIX ORE WITH WASTE SAMPLES!!! -

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To avoid confusion with other marks on core, the colour used for noting sample
intervals should not be used for any other marks.

The splitting and sawing of core for assay is described in detail in Section 4.16.12 of this
reference volume.

5.5. GEOLOGIC DATA COLLECTION FROM RC CHIPS


Aside from chip sample assays, only a limited amount of geologic data can be gleaned from
the chips (cuttings) collected at the reverse circulation (RC) drill rig. These data include:

Lithology
Alteration
Mineralization

Other than the ability to detect some of the stronger structures intersected based on the
presence of gouge or clays in with the larger chips or the presence of vein gangue minerals,
little can be ascertained about structures intersected by the RC drill.
The Project Geologist should make sure that the chips collected at the RC rig are logged
promptly using the standard log sheet established for the particular site or project. The
degree of detail in the logs will depend on the local geology and the purpose of the drilling
program.
For example, resource definition drilling, stope margin test drilling and
condemnation drilling programs typically require less detailed logging than for resource
estimation.
Section 4.15.3 describes sample collection at RC rigs in detail.

5.6. GEOLOGICAL MAPPING


Comprehensive geologic mapping is essential during all stages of a project, and care must be
taken once mining commences to ensure that comprehensive geologic mapping continues.
Only after mining begins do the geologists begin to truly understand the deposit. New
evidence for controls on mineralization, dilution and other critical issues can be present in the
working faces of a mine virtually every day, at both underground and open pit operations. Upto-date sets of geologic plans and cross sections must be maintained as tools to address
daily operational issues and any discrepancies that may arise in reconciling production results
with the resource model. Without these maps and sections, ore can inadvertently be lost,
and/or mining can take place in areas that are uneconomic.
It is beyond the scope of this reference volume to delve into the many valid approaches to
geological mapping. While the basic techniques for geological mapping may be fairly uniform
from exploration projects to mine operations, the many site-specific modifications or
enhancements to techniques that are made to address the unique geological character of
each deposit make it impractical for a manual of this type to adequately cover. However, all
mapping procedures currently in place should conform to the following general guidelines:

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There must be consistency established for the level of mapping detail required and for
descriptions and classifications used in core logging and geologic mapping. These
include a common understanding of lithologic units and contacts, alteration types
(especially silicification), structure (particularly breccia) classifications and any other
geologic factors of particular local importance.

Correlation of structures and geological contacts must be made in the field during the
mapping process, not in the office after the mapping data have been collected. An
interpreted map of the benches immediately above the bench being mapped should
be taken into the field, and used as part of the mapping process.

The Chief Geologist, Superintendent of Geology, or Project Geologist must be


responsible for maintaining quality control of core logging and geologic mapping.
Brief, daily checking of core logs and mapping sheets will avoid re-logging and/or remapping, which can cause unacceptable delays and expense down the road. Also,
these department or project heads must reserve time to look at core, pit bench
geology and underground headings on a regular basis, in order to maintain an
essential working knowledge of the geology of the deposit.

If time and manpower restraints significantly affect the ability to maintain up-to-date
core logs, geologic plan maps and geologic cross sections, the relative importance of
various geologic features should be categorized, so that the most important features
continue to be mapped, even if the less important features are not recorded.
Computerization of these tasks should also be seriously considered.

5.7

REFERENCES

BADGLEY, PC, Structural Methods for the Exploration Geologist, Harper, New York.
BARTON, N, LIEN, R and LUNDE, J. 1974. Engineering classification of rock masses for the
design of tunnel support. Rock Mechanics. Vol 6, Number 4.
BERKMAN, DA, 1976, Field Geologists Manual, Monograph Series #9, Australasian Institute
of Mining & Metallurgy.
BIENIAWSKI, Z. T, 1973. Engineering classifications of jointed rock masses. Transactions of
the South African Institution of Civil Engineers. Vol 15, Number 12.
BIENIAWSKI, Z. T, 1989. Engineering Rock Mass Classifications. John Wiley. New York.
BRIDGES, M. C, 1993. Assessments of Ground Conditions for Exploration Prospects and
Mines. In, Proceedings of the International Mining Geology Conference (I. Robertson and W.
Shaw Eds). Pp 243-254. The Australasian Institute of Mining and Metallurgy, Melbourne.
BROWN, E. T, 1981. Rock Characterisation Testing and Monitoring IRSM suggested
methods. Pergammon Press. Oxford.

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Edition 1 November, 2002

DEER, D. U and DEERE, D. W, 1988. The Rock Quality Designation (RQD) Index in
Practice. In, Rock Classification Systems for Engineering Purposes, ASTM STP 984. (L.
Kirkaldie Ed). Pp 91-101. American Society for testing and Materials. Philadelphia.
HOEK, E and BRAY, J.W., 1981. Rock Slope Engineering. The Institution of Mining and
Metallurgy. London.
HOEK, E and BROWN, E. T, 1980. Underground Excavations in Rock. The Institution of
Mining and Metallurgy. London.
HOEK, E and BROWN, E. T, 1997. Practical Estimates of Rock Mass Strength. International
Journal of Rock Mechanics, Min. Sci., 34:8, 1165-1186.
KIRKALDIE, L 1988. Rock Classification Systems for Engineering Purposes.
Society for Testing and Materials. Philadelphia.

American

LAHEE, FH, 1952, Field Geology, 5th Ed, McGraw-Hill, New York.
LAUBCHER, D. H and TAYLOR, H. W, 1976.
The Importance of Geomechanics
Classification of Jointed Rock Masses in Mining Operations. Proc. Symposium on
Exploration for Rock Engineering Vol 1. Johannesburg.
NICHOLAS, D., and SIMMS, D., Collecting and Using Geologic Structure Data for Slope
Design. In: Slope Stability in Surface Mining. SME, Littleton Co.
PETERS, W. C., 1978. Exploration and Mining Geology. John Wiley. New York.
PRIEST, S. D., 1985. Hemispherical Projection Methods in Rock Mechanics. George Allen
and Unwin. London.
ROBERTS, C. M., 1992. Core Drilling as a Geomechanical Tool. In Western Australian
Conference on Mining Geomechanics. (T Szwedzicki, GR Baird and TN Little Eds.) Curtain
University of Technology. Kalgoorlie.
STILLBORG, B., 1986.
Sweden.

Professional Users Handbook for Rock Bolting.

Atlas Copco.

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APPENDIX

Barrick Gold Corporation Geotechnical Diamond Drill Core Log

Filling

Block Size

Roughness

Type

Persistence

Spacing (cm)

Depth (m)

Frequency

Rock
Type

RQD (%)

Rec
(%)

Strength

To
(m)

Weathering

From
(m)

Hole No.

Page of

Seepage

Discontinuities
Orientation

Aperture (mm)

Lithology

Wall Strength

Drilling

Project

Number of
Sets

Reference for Mineral Reserves and Resources


Collection

Appendix 5-1

Comments

Section 5 Geotechnical and Geological Data

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 6

SAMPLE PREPARATION
AND
ASSAYING

Section 6 SAMPLE PREPARATION AND ASSAYING


6.1. INTRODUCTION ........................................................................................................... 6-1
6.2. TERMINOLOGY............................................................................................................ 6-1
6.2.1. ACCURACY VERSUS PRECISION.......................................................................... 6-1
6.2.1.1. Accuracy ............................................................................................................ 6-2
6.2.1.2. Precision ............................................................................................................ 6-2
6.2.2. SAMPLING TERMINOLOGY .................................................................................... 6-3
6.3. SAMPLE MANAGEMENTS AND TRACKING ............................................................. 6-4
6.3.1. SAMPLE MANAGEMENT ......................................................................................... 6-4
6.3.2. SAMPLE TRACKING ................................................................................................ 6-5
6.4. SAMPLE PREPARATION ............................................................................................ 6-5
6.4.1. OBJECTIVE .............................................................................................................. 6-5
6.4.2. TYPES OF SAMPLES............................................................................................... 6-6
6.4.3. DETERMINING A SAMPLE PREPARATION PROTOCOL ...................................... 6-6
6.4.4. SAMPLE PREPARATION STEPS ............................................................................ 6-8
6.4.4.1. Drying................................................................................................................. 6-8
6.4.4.2. Crushing............................................................................................................. 6-8
6.4.4.3. Pulverizing.......................................................................................................... 6-8
6.4.4.4. Splitting .............................................................................................................. 6-9
6.4.5. SAMPLE CONTAMINATION ISSUES .................................................................... 6-10
6.4.6. CHECK SAMPLING ................................................................................................ 6-10
6.5. ASSAYING.................................................................................................................. 6-11
6.5.1. OBJECTIVE ............................................................................................................ 6-11
6.5.2. ASSAYING TECHNIQUES ..................................................................................... 6-11
6.5.2.1. Fire Assay Method ........................................................................................... 6-12
6.5.2.2. Screen Fire Assay Method............................................................................... 6-13
6.5.2.3. Acid Digestion (Aqua Regia) Method ............................................................... 6-14
6.5.2.4. Cyanide Leach Method ................................................................................... 6-15
6.5.3. FINISHING TECHNIQUES...................................................................................... 6-15
6.5.4. CHECK ASSAYING ................................................................................................ 6-17
6.6. LABORATORY AUDITS............................................................................................. 6-17
6.6.1. AUDITS FOR LABORATORY SELECTION............................................................ 6-18
6.6.2. ONGOING LABORATORY AUDITS ....................................................................... 6-26
6.6.2.1. Housekeeping .................................................................................................. 6-26
6.6.2.2. Procedures....................................................................................................... 6-26
6.6.2.3. QA/QC.............................................................................................................. 6-27
6.6.2.4. Post-Audit Conference ..................................................................................... 6-27
6.7. SAMPLE STORAGE AND DISPOSAL ....................................................................... 6-27
6.8. DATABASE MANAGEMENT ..................................................................................... 6-28
6.8.1. PRELIMINARY ENTRY OF ASSAYS FROM LABORATORY ................................ 6-28
6.8.2. ENTRY OF ASSAYS INTO GEOLOGIC DATABASE ............................................. 6-29
6.8.3. ASSAY DATA VALIDATION ................................................................................... 6-29
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6.9. DOCUMENTATION..................................................................................................... 6-30


6.10. ORIENTATION TESTWORK ...................................................................................... 6-30
6.11. REFERENCES ............................................................................................................ 6-31

APPENDICES
Appendix 6-1

Specifications for Analytical Contract

Appendix 6-2

Sample Preparation Equipment

Appendix 6-3

Analytical Techniques

Appendix 6-4

Screen Fire Assaying

Appendix 6-5

Laboratory Audit Form

Appendix 6-6

Heterogeneity Testwork

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6.1. INTRODUCTION
The assay value of a sample received from a laboratory is the end result of a multi-step
process of sample preparation and analysis. This exacting process is a specialized field in
which the laboratory provides most of the expertise. However, care should be taken by
Barrick personnel not to leave all decisions relative to sample preparation and analysis to the
laboratory. Laboratories typically are under severe competitive pressure and often look for
ways to cut costs, and these cost cutting procedures can compromise the quality of the assay
results that Barrick receives. Barrick project personnel should determine the accuracy of the
results that is required and then determine a reasonable price for that accuracy.

- The cheapest laboratory is often not the best laboratory


As exploration or development work proceeds on a project, it is the responsibility of the
Barrick project geologists to monitor the results and assess the effectiveness of the
techniques used.
For these reasons it is important that the Barrick project geologists understand the
laboratorys sample preparation and assaying procedures and maintain control of these
procedures. This is achieved by:

Setting or agreeing to definite procedures that the lab must follow.


Conducting lab audits to ensure the procedures are followed.
Assessing assay results and acting swiftly when unsatisfactory results are received.

For large drilling and assaying programs, project managers should consider setting up a
contract with the primary analytical laboratory. The basic points to be considered for such a
contract are outlined in Appendix 6-1. A form that can be used to help evaluate prospective
primary laboratories can be found in Appendix 6-5.

6.2. TERMINOLOGY
The common terms used in assaying are explained below. It is recommended that all Barrick
personnel adopt this terminology when issuing reports and other communications.

6.2.1.

ACCURACY VERSUS PRECISION

Accuracy in assaying is a measure of the ability to determine the true grade of the primary
sample. Precision in assaying refers to the ability to consistently repeat the assay results for
a sample within required limits. Accuracy and precision are the means by which the quality of
a laboratorys work is judged. The following diagram illustrates the concepts:

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Good precision
Good accuracy

Good precision
Poor accuracy

Poor precision
Good accuracy

Poor precision
Poor accuracy

The variance of the results is a direct consequence of the many errors that can be introduced
during the sampling and assaying stages.

6.2.1.1. Accuracy
Accuracy is a measure of the closeness of the assay result to the true grade of the primary
sample. It is affected by:

The ability to produce an assay split (subsample) which is representative of the


original sample.

The ability to achieve an assay result which is close to the true grade of the assay split
(subsample).

The introduction of a systematic error in any of the above processes will produce a biased
and inaccurate result. Laboratory accuracy can only be verified by using Standard Reference
Materials (SRMs) of known grade, in the manner described in Section 7, QA/QC for
ASSAYING AND SAMPLING, of this reference volume.

6.2.1.2. Precision
Precision in assaying is the ability to consistently repeat an assay result. It is affected by
random errors generated in:

Field sampling.
Sample preparation.
Assaying.

Precision can be determined by examining the standard deviation, variance and coefficient of
variation of the results of check samples and check assays.

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During the early stages of exploration, when it is important to distinguish mineralized


anomalies from background levels, a high level of accuracy is not required, but precision is
important. At the resource definition stage, where accurate grades are required for economic
decisions, it is necessary to have a high level of both accuracy and precision. At the mining
stage, when the properties of the orebody are better known, lower levels of precision are
sometimes acceptable as a trade-off for quicker turnaround of results from the laboratory.

6.2.2.

SAMPLING TERMINOLOGY

There is a unique set of terms that applies to sample preparation and assay procedures.
These terms are described in the flow charts below, with the recommended standard
terminology shown in boxes.

P R IM AR Y SA M P LIN G AN D A S SAYIN G
D R ILLIN G

RC

DIAM O N D

SPLIT

SPLIT

A SS A Y
SP LIT

R IG
S PLIT

R ETA IN ED
H A LF C O R E

C RU SH
SA M P LE
S TO R A G E

TO TA L S A M PLE
P R EP A R A TIO N

SPLIT

C O A R SE
R EJE C T

PULVERIZE

SPLIT

PU LP
SP LIT
(300g)

R E PE A T(s)

ASSAY(Au1,Au2,etc)

PU LP
R EJEC T

50g C H A R G E

ASSAY(Au)

PR IM A R Y
LA B
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CHECK ASSAYING

CHECK SAMPLING

DRILLING

RC

DRILLING

DIAMOND

RC

DIAMOND

RIG
SPLIT

RETAINED
HALF CORE

PRIMARY LAB
RETRIEVE
PULP SPLIT (300g)

RE-SPLIT

RE-SPLIT

DISPATCH TO SECONDRY LAB

Quarter Core

ASSAY
SPLIT

50g CHARGE

CHECK
ASSAY

as per Primary Sampling and Assaying flowchart

ASSAY

SECONDARY
LAB

PRIMARY
LAB

6.3. SAMPLE MANAGEMENT AND TRACKING


The process of sample numbering, handling and dispatch to the laboratory must be
established before the start of any sampling program, in accordance with site- or projectspecific procedures. The steps to follow with respect to sample numbering and dispatch to
laboratories are outlined in Sections 4.16.12.3 and 4.16.12.5 of this reference volume.

6.3.1.

SAMPLE MANAGEMENT

Sample management is the procedure for maintaining physical control of samples from the
drill rig, underground face, or surface collection site until the samples arrive at the laboratory,
ensuring that proper recording and accounting of the samples takes place. The term that
refers to the control of the samples from source to the laboratory is chain of custody. Since
the Bre-X scandal several years ago, maintaining chain of custody of samples between the
point at which the samples are taken and the laboratory has become a critical issue in the
eyes of the various regulatory agencies that oversee the mining industry. While it is not
always possible for Barrick to maintain direct physical control over samples at all times until
delivery to the laboratory, steps must be taken to ensure that samples are well-packed and
transported via reputable common freight carriers.

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6.3.2.

SAMPLE TRACKING

Each operation or project site should maintain a planning chart to keep track of the samples in
the sampling and assaying process. The planning chart is separate from the geologic data
base and should include fields or space for each of the following:

Sample source (i.e. underground working, drill hole number, or open pit bench).
Assay sample numbers dispatched to laboratory.
Assays received from laboratory.
Problems identified from examining SRM and blank sample results.
Problems resolved.
Database updated.
Check samples selected.
Check samples dispatched to laboratory.
Check samples received from laboratory.
Check assay pulps selected.
Check assay pulps dispatched to secondary laboratory.
Check assay results received from secondary laboratory.
Statistical analysis of check samples, check assays, standards and blanks.
Problems identified from statistical analysis.
Problems resolved.
Samples returned to operation or project site for storage.

In general, it is best if one person on the project or at the operation is designated to track
samples.

6.4. SAMPLE PREPARATION


Sample preparation in the laboratory is an extension of the sampling undertaken at the project
site. For this reason it must be monitored carefully by the Project Geologist. A flow chart
should be designed for each sampling protocol (process), which all personnel working on the
project must follow.

6.4.1.

OBJECTIVE

Sample preparation in the laboratory must achieve the following objective:

- To produce a representative assay charge from the original assay split


submitted to the laboratory The objective is usually accomplished in one or two stages that include:
1. Crushing and splitting, and/or
2. Pulverizing the final split.
Each of these stages must be performed to the following standards:

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Crushing and splitting must obey accepted sampling theory.


The final pulp must be homogeneous.

It is essential for the geologist to ensure that these objectives are being met by conducting the
appropriate testwork and/or by regular analysis of quality control checks.

6.4.2.

TYPES OF SAMPLES

The types of samples generated at operations sites and by exploration drilling programs can
be quite varied. These include:

RC drill chips.
Diamond drill core.
Open pit blast hole samples.
Underground and open pit rock face chips.
Underground muck samples.
Stockpile samples.
SRMs and blanks.

The collection of these samples is discussed in this reference volume in Section 4, DRILLING
METHODS AND PROCEDURES, and Section 15, PRODUCTION RECONCILIATIONS. The
treatment of these samples prior to assaying depends on their total size and maximum
particle diameter. Because of particle size differences within samples, a suitable sample
preparation protocol must be developed.

6.4.3.

DETERMINING A SAMPLE PREPARATION PROTOCOL

The sample preparation normally consists of particle size reduction, followed by splitting. The
end product of the sample preparation process is a very small sample split (on the order of 30
to 50g) that is then assayed. This sample split must be representative of the larger sample
that was collected at the drill rig or in the mine.
Factors to consider when determining a sample preparation protocol include:

Different ore types can have vastly different gold distribution and gold particle sizes.

Because the density of gold is so much greater than its host rock, this can easily
cause gravity segregation during sample handling.

Each sample preparation stage introduces additional sampling errors.

Each sample preparation stage increases the total assaying cost per sample.

- Incorrect sample preparation leads to incorrect assays! Particle size reduction is far more effective than increasing sample size to reduce sampling
errors. This is because reducing the particle size reduces the variance at a much greater rate
than increasing the sample weight. The critical step in the preparation process, therefore, is
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determination of the acceptable minimum sample split weight (at a particular particle size) that
is required before allowing the next split to take place. Because this is not readily apparent
early in the evaluation of an orebody, these guidelines should be followed:

Examine the exploration QA/QC data carefully to determine if the sampling techniques
used produce representative assay splits.

Conduct orientation testwork as soon as possible (see Section 6.10, Orientation


Testwork, which follows). A sampling nomograph is probably the most useful tool for
mapping out the steps in a sample preparation protocol (see Appendix 6-6). Further
reading on the use of nomographs can be found in Radford, 1987.

Evaluate the check sampling results on a regular basis (see Section 7, QA/QC for
ASSAYING AND SAMPLING, in this reference volume).

Be prepared to modify the sample preparation protocol if the check sampling results
indicate that a problem exists.

- Do not allow a sampling problem to continue unchecked

The sample preparation protocol should be fully documented and communicated to all
geologists working on the project and also to the laboratory.

The observance of the sample preparation protocol by the laboratory should be


monitored by periodic Barrick audits, at least once every three months.

The following examples of sample preparation flowcharts illustrate the way that an instruction
should be issued to the laboratory. These flowcharts, which are an extension of the sampling
protocol developed by the geologists, can then be used for auditing the laboratory:
RC SAMPLES (CO ARSE GOLD)
ASSAY
SPLIT
(~ 7 kg)

RC SAMPLES (NO COARSE GOLD)


ASSAY
SPLIT
(~3.5kg)

(Sample submitted to Lab)

DRY

DRY

NUGGET CRUSHER

(<2mm)
GRIND
CHECKS
(1 in 100)

SPLIT
3.5kg
LM5
GRIND

(grind time 7minutes)

CRUSH
REJECT
(~ 3.5 kg)

SCOOP

PULP
SPLIT
(300g)
SCOOP
(50g)
FA 50
AAS

(Sample submitted to Lab)

PULP
REJECT
(~ 3.2 kg)
STORE
3 MONTHS
then
RETURN
TO SITE

LM5
GRIND

(Total Sample Preparation)


(>90% Passing 75 microns)

SCOOP
(300g)
STORE
3 MONTHS
then
DISCARD

PULP
SPLIT
(300g)

GRIND
CHECKS
(1 in 100)

SCOOP
(50g)

STORE
3 MONTHS
then
DISCARD

FA 50

PULP
REJECT
( ~ 3.2kg)

STORE
3 MONTHS
then
RETURN
TO SITE

GRIND
CHECKS
(1 in 100)

STORE
3 MONTHS
then
DISCARD

AAS

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6.4.4.

SAMPLE PREPARATION STEPS

A large variety of sample preparation equipment is used in laboratories to perform the various
prep functions. A detailed description of equipment available on the market and the
advantages and disadvantages of each is presented in Appendix 6-2. The choice of
equipment to be used in each sample preparation procedure will depend on the following:

Sample size (determined from the sampling nomograph).


Availability of equipment.
Cost of the procedure.

6.4.4.1. Drying
Since the metal content of samples must be reported on a dry weight basis, each entire
sample must be thoroughly dried to zero percent moisture content prior to preparation.
Drying is typically done for up to 12 hours at 120C to 130C in an oven specifically designed
for drying rock samples. For samples with high sulphide content, or if the presence of mercury
is known or suspected, lower drying temperatures may be required. Once dried, samples
should be prepared as soon as possible to avoid the drawing of moisture from the
atmosphere, particularly in humid climates. For an illustration of a drying oven and additional
discussion, see Appendix 6-2, Sample Preparation Equipment.

6.4.4.2. Crushing
A crusher is used to reduce the original sample to a smaller particle size in as short a time as
possible. The broad categories of crusher types are:

Jaw Crusher.

Used for core, rock samples from underground faces and for stockpile samples.
Final product size is around 12mm (in).

Roll Crusher.
Nugget or Rhino Crusher.

Used for core and RC chips.


Can be used as a secondary crusher before pulverizing.
Final product size is around 2 to 3mm.

For illustrations of these crushers and additional discussion, see Appendix 6-2, Sample
Preparation Equipment.

6.4.4.3. Pulverizing
A pulverizer grinds the sample to pulp size, which is suitable for assaying. This is usually 90%
passing 75m to 106m. It is the final stage of sample preparation and achieving a suitable
grind size can be time consuming. The broad categories of pulverizer types are:

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Puck and Bowl Pulverizer.

Puck, Ring and Bowl Pulverizer.

Uses rings and a puck to grind the sample in a vibrating bowl.

Vertical Spindle Pulverizer.

Uses a moving puck to grind the sample in a vibrating bowl.

Uses a vertically rotating spindle to drive a plate which grinds the sample against a
stationary plate as the sample flows through the mill.

Disc Pulverizer (Conventional).

Uses a horizontally rotating spindle to drive a disc that grinds the sample against a
stationary disc as the sample feeds from above.

Similar to a Keegor mill, except the discs are smooth (see Appendix 6-2)

For illustrations of these pulverizers and additional descriptions of each, see Appendix 6-2,
Sample Preparation Equipment.
Periodic checks should be conducted after each grinding stage to ensure that the required
particle size is being achieved. Although grind checks are typically performed by laboratories
as part of routine internal quality control, Barrick geologists should also obtain pulps
unannounced from the laboratory for grinding checks by an independent laboratory. Further
details on grinding checks are described in Section 7, QA/QC for ASSAYING AND
SAMPLING, of this reference volume.

6.4.4.4. Splitting
Splitting normally is conducted after each stage of sample particle size reduction to reduce
the sample weight. The following techniques and equipment are commonly used in
laboratories:

Riffle Splitter - This is the most common device used for splitting samples. A riffle
splitter has the advantage that a sample can be repeatedly split (halved) until a
required amount is obtained. This method can be used in all sample preparation
stages, except the splitting of pulp(s) for assay.

Rotary Splitter This device is suitable for most splitting applications, but has the
disadvantage that once the splitting ratio is set, it cannot be adjusted. Like a riffle
splitter, a rotary splitter can be used in all sample preparation stages except for
obtaining a pulp split.

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Cone Splitter This type of splitter is suitable for most splitting applications, but like
the rotary splitter, once the splitting ratio is set, it cannot be adjusted. Cone splitters
are not widely used today.

Scoop Scoops typically are used to produce the 30 to 50g assay charges from the
300 to 500g pulp splits.
Scoops should only be used where samples are
homogeneous.

6.4.5.

SAMPLE CONTAMINATION ISSUES

There is potential for cross-sample contamination in the sample preparation area if strict
measures are not taken to clean the equipment thoroughly between samples and to control
airborne dust. Good housekeeping and equipment maintenance are reflections of the
laboratorys professionalism and must be taken into account when evaluating bids or cost
proposals for sample preparation and assay work and conducting lab audits (see Section
6.6). The following areas, equipment, and procedures must be monitored for evidence of
possible contamination:
a) Sample receiving area
b) Drying area
c) Crushing equipment
d) Pulverizing equipment
e) Splitting and storage of pulps
f)

Storage of coarse rejects (residues)

g) Dedicated preparation areas (i.e. separate preparation areas for samples of varying grade
that have varying accuracy requirements, such as mill carbons, development/exploration
samples and grade control samples.)
Further details are contained in Section 6.6, Laboratory Audit, below.

6.4.6.

CHECK SAMPLING

Check sampling is conducted to verify that the assay split that was sent to the laboratory was
representative of the original sample. Check sampling should commence after the results of
the first round of assaying have been returned to the project site.
Further details on check sampling are described in Section 7, QA/QC for ASSAYING AND
SAMPLING, of this reference volume.

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6.5. ASSAYING
Assaying is a historical term referring to the determination of metal content in samples by
using particular quantitative techniques such as fire assay with gravimetric finish. In practice,
the terms assaying and analysis are used somewhat interchangeably.
Assaying for gold is a specialized procedure for which the geologist relies on the expertise of
the laboratory. However, it is important for Barrick geologists to have a basic understanding
of the assaying process in order to maintain control over the quality of the results received
from the laboratory.

6.5.1.

OBJECTIVE

Assaying in the laboratory must accurately determine the quantities of each metal or element
present in the sample, as specified in the instructions from the Project Geologist to the
laboratory.
This objective is accomplished in stages that include:

Fusing.
Cupelling.
Weighing.
Finishing.

- The assay technique used must be capable of reporting all of the gold in the
assay charge It is essential for the Project Geologist to ensure that the assay objectives are being met by
conducting the appropriate testwork and/or by regular analysis of quality control checks. See
Section 7, QA/QC for ASSAYING AND SAMPLING, of this reference volume.

6.5.2.

ASSAYING TECHNIQUES

Choosing the appropriate assaying technique for the ore type or mineralization sampled is
critical.

- An experienced chemist must ALWAYS be consulted when selecting assaying


techniques There are four basic assay techniques: fire assay, screen fire assay, acid digest, and cyanide
leach. The choice of assay technique will depend upon the following factors, in approximate
order of importance:

Ore type.
Level of accuracy required.
Detection limit required.
Required turnaround time for results.
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Cost.

The differences between the four techniques lie in the ways by which the gold is extracted
from the sample. It must be stressed that each technique has disadvantages. The merits and
disadvantages of each technique are summarized below. A detailed description of each is
presented in Appendices 6-3 and 6-4. Further reading on this subject is recommended in
Eames, 1999.

6.5.2.1. Fire Assay Method


In fire assaying, the sample is fused with a flux mixture in a furnace at about 1100oC, precious
metals are collected by the lead introduced with the flux, and the lighter silica slag is
decanted. After solidifying, the resulting lead button is then placed in a bone-ash or calcined
magnesia cupel, and the cupel is placed in a muffle furnace where the lead is absorbed into
the cupel, leaving a button or prill. The prill containing the precious metals is then dissolved
in acid, and the precious metal concentration can be read on a calibrated AA machine.
Although fire assaying is the preferred method for analyzing samples for resource estimation
and exploration, all of the following factors should be considered when selecting the assaying
technique:

Ore type:

Fire assay has the advantage over other techniques in that it is least affected by
ore mineralogy (with some exceptions, such as certain ferro-titanate ore types and
ores having very refractory mineralogy).

An expert fire assayer can tailor the flux to optimize gold extraction from different
ore mineralogies.

Fire assay determinations are not skewed by gold particle size in the assay
charge.

Level of accuracy:

Highly accurate for most types of mineralization.

Relies heavily on the experience of the fire assayer.

Lower detection level achievable using AA finish:

0.01 0.02g/t Au.

Turnaround time for results:

Not as rapid as cyanide leach or acid digestion when dealing with oxide ore
bodies.

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Cost:

More expensive than acid digestion method.

6.5.2.2. Screen Fire Assay Method


Screen fire assaying is a more complex procedure than the fire assay method but it allows
more accurate assaying of samples containing coarse gold particles. It is performed on types
of samples where difficulties have occurred in attempting to prepare a homogeneous charge
for assaying.
The process consists of putting the entire weight of pulp (1 to 3kg) through a 106-m sieve to
separate the sample into a coarse fraction (>106m) and a fine fraction (<106m). More than
one sieve size can be used if a gold size distribution analysis is required. The coarse fraction
is assayed in total, which ensures that all coarse gold in the sample is assayed. The fine
fraction constitutes the bulk of the sample, from which three charges are taken for fire assay.
The assays from the three charges then are averaged, and the result is combined with the
coarse fraction assay (using the sizing weights as factors) to arrive at a final grade for the
sample.
Screen fire assaying typically is used for metallurgical testwork and orientation studies of
mineralized material that are part of exploration programs, or for samples used for resource
estimation in deposits where coarse gold is documented or suspected. It is generally not
used for routine assaying because of its high cost compared with other methods.
Factors to consider when selecting the screen fire assay method are:

Ore type:

As with standard fire assaying, screen fire assaying has the advantage over other
techniques in that it is least affected by ore mineralogy (with some exceptions,
such as certain ferro-titanate or highly refractory ore types).

Screen fire assay determinations are not skewed by gold particle size in the assay
charge.

Level of accuracy:

When coarse gold is present, screen fire assay produces the most accurate result
of all of the gold assaying techniques.

A lower detection limit (0.01 0.02g/t Au) is achievable using an AA finish (see
Section 6.5.3).

Turnaround time for results:

Screen fire assay is the most time consuming of all assay techniques.

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Cost:

Screen fire assay is the most expensive of all assay techniques.

6.5.2.3. Acid Digestion (Aqua Regia) Method


When assaying by this method, the sample is digested in aqua regia, a mixture of nitric acid
and hydrochloric acid. The digestion is performed on a hotplate to speed up dissolution. The
gold is extracted from the aqueous acid solution into an organic solvent, MIBK or DIBK, which
is then passed through an AA machine to determine the gold concentration.
The acid digestion method is the preferred assaying technique for grade control samples
(where checks of blast holes by fire assay has been completed to show that consistent gold
extraction is being achieved using acid digestion).
Factors to consider with regard to acid digest assaying include:

Ore type:

Acid digestion is not as effective as fire assay or screen fire assay at breaking
down gangue minerals, but it is generally more effective than the cyanide leach
method.

Samples containing high sulphides or carbonaceous material may require


roasting prior to assay for digestion, as high refractory material may not be fully
oxidized in its natural state as sampled in the field. .

Gold associated with copper and tellurium can be lost through fuming if digestion
is done improperly.

Highly ferruginous ores can cause gold recovery problems with acid digestion.

As the size of individual gold particles increases, a longer time is required to


digest all of the gold present in the sample.

Level of accuracy:

Accuracy is questionable when refractory material is present.

As with fire assay and screen fire assay, if the pulp is not homogeneous, the level
of accuracy will suffer.

Acid digestion is prone to more procedural errors in the laboratory.

Lower detection level when used with AA finish, depending on assay grade and
dilution requirements.

0.02 0.02g/t Au (See Section 6.5.3).


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Turnaround time for results:

More rapid than fire assay or screen fire assay, but not as rapid as cyanide leach,
when dealing with oxide material.

6.5.2.4. Cyanide Leach Method


With this method, sodium cyanide solution preserved with a base (typically sodium hydroxide)
is used to leach the available gold from the pulp sample. The cyanide solution is allowed to
contact the ground sample material in an agitated system to form a slurry. Contact time
varies with the material type. Leach times between one and 24 hours are common.
The gold-bearing solution is then separated from the slurry and analyzed by AAS to
determine the quantity of gold leached from the ore.
Since complete leaching of the gold only occurs in porous oxidized ores, the cyanide leach
method is generally not used alone for assay purposes. The presence of sulphides, silica,
and/or organic materials can severely impact the leaching process. The method only
determines the level of cyanide-extractable gold. Thus, while the method provides
information about cyanide leach recovery from a particular ore, it can be very misleading as to
total gold content, as well as with respect to potential gold recovery in a modified leach
process such as CIL.
Other factors to consider when choosing the cyanide leach method are:

Ore type: Cyanide leach is not as effective as the fire assay or acid digestion methods
in breaking down gangue minerals.

Level of accuracy.

0.02 0.02g/t Au.

Cost:

6.5.3.

If the pulp is not homogeneous, the size of the charge can be increased more
readily than with the fire assay methods.

Lower detection level (See Section 6.5.3)

Large gold particles require a longer time to leach than smaller gold particles.

The cyanide leach method is more expensive than acid digestion and the fire
assay methods.

FINISHING TECHNIQUES

The finishing technique refers to the final step in the assay process when the amount of gold
dissolved in solution is determined. Finishing techniques include:
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AAS finish using aqueous solution:

This is the most commonly used finishing technique with the fire assay methods.

The acid solution containing the dissolved gold is aspirated directly into the AAS
machine.

Lower detection limit is 0.01g/t Au

Precision is 0.02g/t Au (depending on sample size).

AA finish using organic solvent extraction:

This method is commonly used in conjunction with acid digestion and cyanide
leach analysis.

Gold from the acid solution is first extracted and concentrated into an organic
solvent before aspirating into the AAS machine.

Lower detection limit is 0.001g/t Au.

Precision is 0.002g/t Au, depending on variations to the technique.

Atomic Absorption Spectrophotometry (AA) machine

ICP (Inductively Coupled Plasma) finish:

Gold from the acidic solution is analyzed by the ICP-AES unit.

This method provides good accuracy for samples in lower grade ranges,

Lower detection limit is dependent on the technique used, as determined by


consultation with laboratory chemist.

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Gravimetric part and weigh finish (for fire assay only):

This traditional technique involves placing the fire assay prill in nitric acid, which
dissolves the silver but leaves the gold. Platinum group metals are only partially
soluble in nitric acid, and the presence of these will be indicated by discolouring of
the nitric acid solution to brown/black (indicating platinum) or orange (indicating
palladium). After dissolution of the silver, the prill is annealed.

Parting is more expensive and time consuming than AAS finish.

The lower detection limit is 0.2g/t Au.

Precision is 0.02g/t Au.

This is a very accurate method for determining the gold content of high grade
samples.

See Appendix 6-3 for a more detailed discussion of finishing techniques.

6.5.4.

CHECK ASSAYING

Check assaying is required to monitor for potential assay bias at the primary laboratory.
Normally, a minimum of 5% of the samples analyzed are checked as part of a quality control
(QA/QC) program. The original pulp splits from the primary laboratory are sent to a secondary
laboratory for reassaying. Check assaying should be undertaken after results for the first
round of assaying have been received.
Further details on check assaying are described in Section 7, QA/QC for ASSAYING AND
SAMPLING, of this reference volume.

6.6. LABORATORY AUDITS


The objective of an analytical laboratory audit is to determine whether the laboratory in
question can competently perform the required sample preparation and assaying of
geochemical, exploration and development drill hole, or grade control samples.
Each audit should be carried out in a routine and consistent manner. In order to maintain
consistency, especially where different Barrick personnel conduct the audits from time to time,
the use of a standard audit form is recommended. The form will allow:

A record to be kept on file of each audit.


Follow up of identified lab problems.
Comparison of lab audits over time.
Comparison of audits between different labs.

An example of a laboratory audit form is included in Appendix 6-5.

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6.6.1.

AUDITS FOR LABORATORY SELECTION

For a first time audit of a laboratory that is under consideration as a primary or secondary lab,
contact the laboratory manager and arrange for an appointment. By making arrangements in
advance, it can be made certain that all of the sections of the laboratory (sample preparation,
fire assay, wet chemical, and cyanide leach sections, along with the weighing room,
instrument facility, and sample storage area) will be in operation at the time of the visit. It is
likely that during this visit the laboratory will be in its best condition. If it is not, it serves as a
warning with respect to managements dedication to housekeeping and quality work.
The first-time audit should proceed in the following order:

Sample receiving and sorting area.


Sample preparation area.
Fire assaying section.
Acid digestion (wet) section.
Cyanide leach section.
Weighing room.
Instrument facility.
Sample storage.
Internal laboratory QA/QC procedures.
Data handling.
Laboratory personnel.

Each of these areas is described in more detail below.


Sample receiving and sorting area - Check the following:

The size and layout of the area and note the size of the area with respect to the
efficiency of handling and sorting of samples as they are received.

How the samples are sorted and the sample numbers are recorded into the laboratory
system (i.e. is there a possibility of mixing job lots or switching individual samples?).

Are the sample numbers, sample preparation and assay methods to be used entered
into a Laboratory Information Management System (LIMS) that will allow them to be
tracked through the laboratory?

Housekeeping in the receiving area. A messy receiving area warns of overall poor
operating practices.

Sample preparation section - The sample preparation section should be in a separate room
with tight-fitting doors to prevent migration of dust created during crushing, pulverizing, and
splitting. The Barrick auditor needs to observe the procedures being used by the sample
preparation technicians.

- Most important, make sure that equipment is routinely cleaned between each
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Check the following:

The capacity of the sample prep section (samples/shift).

Size and layout of the area.

General housekeeping:

Sample dryers:

Method of loading and unloading ovens.


Drying time and drying temperature.

Crushers:

Dust should not be excessive, and sample fragments should not be lying on the
floor, work tables, or hung up on the crushers, pulverizers, and splitters.

The types of crushers (i.e. jaw crushers, roll crushers, or hammer mill). A onestage crusher (Nugget Crusher or equivalent) is preferable, since this can reduce
the particle size to 2mm in one stage, thus avoiding the extra sample handling
needed for two-stage crushing, which provides an additional source of error.
Crusher trays should be large enough to hold the sample without overflowing.

Splitters:

The type and size of splitters being used and their compatibility with the particle
sizes in the sample being split.

The construction of the splitter (should be made from smooth stainless steel).

If a riffle splitter is used, note the number of riffles and whether they are evenly
spaced.

If a nugget crusher is used, a rotary splitter is an ideal complement.

How the splitters are cleaned.

Pulverizers:

The type of pulverizer(s) in use (see Appendix 6-2).

The capacity of each pulverizer (observe pulverizing time per sample).

Is pulverizing done in one stage, or is the sample being divided and then
recombined (a possible source of sampling errors and/or sample loss).

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How are the pulp splits are taken for assay (scooped or split?).

Removal of pulp residue from pulverizers before cleaning (i.e., pulp residue must
not be left in pulverizers due to carelessness, resulting in pulp loss).

Cleaning procedures (vacuumed or blown with compressed air).

Frequency of cleaning with quartz sand or other barren abrasive.

Whether two or more pulverizers are being used in parallel by one operator to
save time (a possible source of sample contamination or error).

Grind checks on pulps:

How is the grind size tested (i.e. are sieves used, or is test simply by feel)?.
Frequency of screen (sieve) tests; these should be done several times per day.
Results of previous checks on other client samples.

Fire assaying section - The fire assaying section should be in a separate room in the
laboratory. Check the following:

The capacity of the fire assay section (samples/shift):

Furnaces:

Maintenance
Condition of furnace liners
The normal batch size used (i.e. 25 or 50 crucibles).
The sample identification system used when batching samples.
Batch makeup:
Number of samples for assay
Number of duplicates
Number of SRMs
Number of blanks.

Assaying:

Crucible size and compatibility with required Barrick sample charge size.

Flux composition, sample to flux ratios and flux mixing procedures (see Appendix
6-3).

Procedure for handling poor fusions.

Procedure for reporting of changes to specified assay procedures.

How samples are tracked within a batch.

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Fusion time (should be between 45 and 65 minutes).

Reuse of crucibles (new crucibles should be used for samples from resource
estimation and development drilling).

Acid digest (wet) section - A separate part of the laboratory should be set aside to carry out
acid digestions and wet assay analyses. Assay equipment, including all glassware, should be
clean and stored under cover. Acid digestion and hot plate areas should be contained within
enclosed fume hoods. Check the following:

Sample capacity of the section per shift:

General:

Housekeeping.
Distilled water source is handy.
Bench space is adequate.
The range of elements that the section is capable of analyzing.

Pre-roasting capabilities (for high sulphide samples):

A separate furnace should be used to prevent cross contamination

Condition of furnace (see Fire Assay Section, above).

Acid Digestion:

Procedures, acids used, order of use.

Batch size (number of beakers per batch).

Batch makeup:
Number of assay samples
Number of duplicates
Number of SRMs and grades of SRMs
Number of internal blanks

The sample tracking system used when placing a batch of samples onto the
hotplate.

Digestion times.

How the temperature of the hotplate is monitored.

If gold is extracted into an organic solvent, what solvent is used, and how the
mixing is performed to achieve complete extraction.

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Internal fire assay checks should be performed in order to monitor gold recovery
from acid digestion.

Method for identifying problem samples and what remedial action is taken.

Cyanide leach - The cyanide leach section should be in a separate area of the laboratory
building. Check the following:

Sample capacity of section per shift.

General.

Housekeeping.
Distilled water source is handy.
Bench space is adequate.
The range of elements that the section is capable of analyzing.

Cyanide leach.

Sample size capability of leach vessels (bottles).

Reagents used and amounts (including water).

Batch size (number of bottles)

Batch makeup:
Number of assay samples
Number of internal duplicates
Number of internal SRMs and grades of SRMs
Number of internal blanks

The sample tracking system used when placing a batch of samples onto rollers or
into tumblers.

How the samples are agitated (rolled or tumbled).

Agitation times.

How the samples are settled and decanted (flocculants used).

Final pH and excess cyanide levels are checked.

If gold is extracted into an organic solvent, what solvent is used, and how the
mixing is performed to achieve complete extraction.

Checks with fire assay should be performed in order to determine gold remaining
in residue.

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Weighing room - Balances and scales for measuring weight should be set up in a separate
room. Check the following:

Cleanliness of room (should be spotless at all times).

Balances should sit on a stable surface not attached to building foundation.

Method of recording weights:

Whether balances are linked to the LIMS (if in place), and if the accuracy of the
weighing is preserved by this link.

Whether gold calculations are done manually or by computer via a link to the
LIMS.

Availability of a microbalance for gravimetric gold weighing.

Frequency of balance checking and calibration.

Instrument facility - The AAS, ICP-AES, or other instruments should be located in a


separate, dust-free sealed room. Check the following:

The make and model of the AAS and ICP-AES units.


That the units are properly ventilated.
Calibration methods for the units:

Types of standards used.

If the grades of the standards are appropriate for the grades of the samples to be
analyzed.

Frequency of standard replacement.

That storage of calibration standards is appropriate (i.e. within a dark sealed area).

The upper grade limit when dilution of a sample is required to keep within the
calibration range.

If the AAS unit is linked directly to the LIMS.

Sample storage - The storage of sample pulps and sample rejects is important as these may
need to be retrieved for check assaying by either by the primary laboratory if assay problems
are detected or by the secondary laboratory in order to confirm assay accuracy. Other uses
for stored samples include metallurgical testwork and making site-based SRMs (see Section
7.3.1.2 of this reference volume). Check the following:

Storage area:

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Samples should be stored under cover and organized to allow easy access and
retrieval.

How samples are identified in storage (e.g. by numbered job lots or individual
samples).

Condition of samples in storage (e.g. pulp envelopes sealed, reject bags tied).

General housekeeping (evidence of sample spillage).

There should be an effective computerized index for stored pulps and rejects.

Internal laboratory quality control (QA/QC) procedures - Laboratories should have their
own comprehensive QA/QC programs that monitor all stages of their analytical procedures.
An important part of an audit for selection of a laboratory is the review of the QA/QC program,
including the following components:

Accreditation:

Accreditation of laboratory by NATA (National Association of Testing Authorities),


ISO 9000, or other.

SRMs and blanks:

The in-house and SRMs used and the grades of these standards.

The checking of in-house SRMs via a round robin, or similar program, with other
laboratories.

Frequency of blank sample insertion. Blank samples should be regularly inserted


into the sample stream in order to monitor potential contamination during both the
sample preparation and analytical stages (see Section 7.3.2.3).

The types and limits of errors allowed before a sample batch is re-assayed, and
the individual who makes this decision.

Duplicates:

How and when duplicate samples are prepared and assayed. These should cover
both the sample preparation and analytical stages in order to enable the
laboratory to monitor internal precision.

The willingness of the laboratory to report the results of these duplicates to


Barrick.

Inter-laboratory test program participation:

The participation of the laboratory in analytical test programs with other


laboratories.
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Internal laboratory QA/QC results:

How the laboratory monitors and assesses its internal QA/QC results.
Actions taken in response to QA/QC data.
Data should be made available for inspection by Barrick personnel.

Data handling - Data handling includes the laboratorys procedures for recording and
transmitting analytical results to clients. The ability of the laboratory to provide timely assay
reports to Barrick is dependent on having an efficient data transfer system in place. In order
to assess the capabilities of the laboratory in this area, the following should be checked:

The performance of the LIMS in order to determine that the laboratory databases and
recording systems are working well.

Verification that the laboratory reporting format meets, or can be revised to meet,
Barricks requirements.

The laboratory data transmission facilities and capabilities. The laboratory should be
able to transmit analytical results electronically (e-mail), by fax, and by mail (hard copy
or disc).

Laboratory personnel - An assessment of the laboratorys personnel is important.


Laboratories that are chronically short-handed typically experience more errors in their
procedures. Sample preparation, in particular, is an area of concern, since laboratories that
cut corners by hiring mostly unskilled workers in the sample preparation area often
experience high levels of turnover. This can induce errors which then affect even the best
analytical processes. The qualifications of the individuals performing the fire assay fusions
and cupelling should always be checked. Fire assaying is an exacting procedure that
requires skill and patience, and experience in these positions is essential.

During the audit for laboratory selection, the following should be checked:

The number of personnel (both full time and part time) employed.

The turnover rates for the various employee classifications.

The qualifications of the key personnel.

Training programs in place, particularly for technicians.

The shift schedules for the laboratory. Long shifts (over 10 hours) can be another
source of error in all sections of the laboratory.

The ability of the laboratory to quickly increase staff levels with experienced workers if
workloads increase.

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6.6.2.

ONGOING LABORATORY AUDITS

During the course of a drilling project, Barrick personnel should conduct ongoing laboratory
audits of the primary laboratory at least once every 3 months. Unlike an initial audit for
selection of a laboratory when it is appropriate to first schedule the audit, ongoing periodic
audits must be done on a random basis, without prior warning. The purpose of these audits is
to observe the operation of the laboratory and its adherence to procedures under normal
operating conditions. Scheduling an audit in advance, or performing the audit on the same
day or week of the same month defeats the purpose of an ongoing audit, since it is logical for
the laboratory to present itself in the best light possible by ensuring that correct procedures
are in use and that the laboratory is clean at the time of the expected visit.
To perform these audits, always arrive unannounced at the laboratory and immediately
contact the manager, informing him/her of the purpose of the visit. Always request that the
manager or a senior technical person accompany you during the audit, and conduct the
examination in a thorough but expedient manner, so that the person(s) accompanying you
can return to their normal duties as soon as possible.
This audit should start at the sample receiving area and then progress through the sample
preparation, fire assay, acid digestion, cyanide leach, weighing room, instrument facility and
data handling sections of the laboratory. The final step of the audit is a conference with the
laboratory manager to discuss briefly the audit findings, any results of the laboratorys internal
quality control program, and any results of Barricks QA/QC monitoring program. The
checklist of items to examine, which is shorter than what was defined for initial assessment
audits in Section 6.6.1, immediately above, is as follows:

6.6.2.1. Housekeeping
All sections of the laboratory should be checked to insure that the facilities meet reasonable
standards for cleanliness during a working shift.
The sample preparation area, in particular, should receive special scrutiny, since more errors
typically arise in this area than all others combined. The area should be reasonably free of
standing dust. Airborne dust should be brought to the attention of the laboratory manager
immediately. Watch for fragments of sample on benches, in and around equipment, and on
the floor, and bring these to the attention of the lab representative assisting with the audit.
Wet chemical areas also should be carefully examined for evidence of spills, beakers boiling
over on hotplates during digestions, or sloppy handling of dry chemicals.
The weighing (balance) room and instrument rooms should be briefly checked. If both are not
spotless, report this to the laboratory manager immediately.

6.6.2.2. Procedures
Adherence to specified procedures should be checked throughout the laboratory, with
particular focus, again, on the sample preparation area, where shortcuts are most likely to
occur. Also check fire assay and wet chemical areas, paying particular attention to flux
formulae and acid mixtures, respectively.
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6.6.2.3. QA/QC
Review the results of the internal laboratory QA/QC for the period between the last audit and
the current examination. Discuss any issues observed in the data with the laboratory
manager as part of the post-audit conference. At the same time, share with the manager the
results of any Barrick QA/QC check sampling sent to a secondary laboratory, as well as data
from blanks and SRMs submitted blind by Barrick to the primary laboratory.
There should be no serious QA/QC issues to discuss at this point, since any potential
problems revealed by QA/QC programs should have been discussed with the laboratory
immediately after detection.

6.6.2.4. Post-Audit Conference


Before leaving, meet with the laboratory manager to discuss any issues identified but not
brought to the managers attention during the audit. The post-audit conference should be
positive in tone and brief.

6.7. SAMPLE STORAGE AND DISPOSAL


A laboratory will normally require storage and disposal instructions for coarse rejects and pulp
splits. Typically, the laboratory will store coarse rejects, assay pulps, and pulp rejects for a
set period of time free of charge. Storage of pulps and rejects after that period must be
arranged for a pre-determined fee.
It is important to plan the handling and storage of pulps and rejects before the drilling or
sampling program begins in order to avoid any last minute rush to pick up pulps and rejects
from the laboratory prior to their discard.
Examples of pulp and reject storage instructions are shown below. These instructions may
vary, as determined by operation site or project policy.
SAMPLE TYPE
COARSE REJECTS

Resource RC

Diamond core

Grade control
ASSAY PULPS

Resource RC

Diamond core

Grade control
PULP REJECTS (300g)

Resource

Grade control

STORE AT LAB

DISPOSAL

3 months
3 months
3 months

Discard
Discard
Discard

3 months
3 months
3 months

Discard
Discard
Discard

3 months
3 months

Return to site
Discard

If the pulps and rejects are to be saved and stored at the mine or project site, the
recommended procedure for storing these is as follows:

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The Project Geologist should designate one person to coordinate the return and
storage of any pulps and rejects from the laboratory. This person will maintain an
electronic database of all pulps, pulp rejects and coarse rejects, including the storage
location for each sample.

The pulps and pulp rejects must be stored under cover in a low-moisture environment

Coarse rejects may be stored outside in sealed barrels or other weather proof
containers.

In general, once mining takes out the area drilled or sampled, the pulps, pulp rejects
and coarse rejects from that area may be destroyed.

- Check assaying and check sampling must be completed PROMPTLY so that


follow-up work is completed before pulps and rejects are discarded by the
laboratory (inadvertently or otherwise) - This applies equally to metallurgical testwork checks (See Section 10) -

6.8. DATABASE MANAGEMENT


Each mine and project site will maintain its own geologic databases for recording assays and
other relevant data pertaining to each drill hole sample, underground sample (face, rib, or
muck grab) and grade control sample. It is recommended that each site have one person
designated as the data base manager who is responsible for the timely addition of all new
data as it arrives from the assay laboratories.

6.8.1.

PRELIMINARY ENTRY OF ASSAYS FROM LABORATORY

If at all possible, assays should be received from the laboratory in digital format (rather than
hard copy) and first stored in a separate temporary database. Prior to merging the temporary
assay data files into the main geologic database, the following steps are recommended:

The database manager should download the assays received from the laboratory into
the temporary database files.

The geologist responsible for the project must then check the assays for:
Acceptable comparison between assay values and logged or mapped geology.
This is an important check for sample switching errors.

Accuracy of SRM and blank results.

The laboratory must be contacted immediately with respect to any problems found.

When confirmed to be correct, the temporary assay data file should be merged into
the geologic database.

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6.8.2.

ENTRY OF ASSAYS INTO GEOLOGIC DATABASE

Mine and project site-specific procedures will govern how assay and drilling data are to be
entered into the geologic database. Although different from site to site, these procedures
should include the following general steps:

A designated person should be responsible for merging the assays into the database.
Assay uploading should be automated in order to avoid corruption of digital data.
Sample numbers should be entered in the database prior to merging of assays.

- Once entered into the geologic database, assays should not be changed or
deleted without the approval of the Project Geologist If there are no site-specific procedures in place for the recording of QA/QC assay data (check
sample assays from the secondary laboratory, check assays from the primary laboratory,
SRM and blank assays from either), it is recommended that these data be downloaded into a
different file in the geologic database. Analysis of these data should be performed at least
every three months using the recommended methods of data analysis described in Section 7,
QA/QC for ASSAYING AND SAMPLING, of this reference volume.
After receiving results for check samples sent to the secondary laboratory and check assays
received from the primary laboratory, a decision must be made with respect to each final
assay that is to be entered into the geologic database for use in resource modeling. It is
recommended that the database have an assay field designated as the final assay (for
example, AuFinal) for this purpose. The method used to determine the final assay to be
used for resource modeling when more than one assay is available should conform to
Barricks corporate or site-specific policy.

6.8.3.

ASSAY DATA VALIDATION

This is the process by which the integrity of the data that are entered into the geological
database is checked. It must be performed before the data are used for resource modeling or
other purposes. The validation should be conducted as follows:

Each batch of results from the laboratory must be checked as soon as received by
the geologist responsible for the project.

Use the standard validation tools available in the database software to check for
misplaced decimals, missing assays, or codes for assays below detection limits (such
as -9) that may not be compatible with resource modeling software:

Print out the laboratory data sheet and check the position and grades of the standards
and blanks.

Cross check the sample numbers on the laboratory data sheet with the sample
numbers in the drill logs, underground sample logs, or relevant field sheet (blasthole
location map, bench face map, or ditch-witch sample sheet).

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Checking of assays should include:

Ensuring that the data were imported into the correct assay field.

A check against geological logs for compatibility (this can be achieved by plotting
assays and geology on cross sections or base plan maps).

6.9. DOCUMENTATION
Documentation of sample preparation and assaying procedures and QA/QC programs is an
important part of the audit trail of an operation or project. This documentation should be
readily available for any technical audits required by Barrick management, to satisfy bank
financing requirements, for possible joint ventures, sale of a project, or in potential legal
proceedings. The documentation should be in the form of written reports and should include:

Sample preparation procedures.

Assaying procedures.

QA/QC procedures and results.

Analysis of QA/QC data.

Actions taken as a result of issues revealed by QA/QC data analyses, such as rerunning of sample lots, deletion of biased or erroneous data from the geologic
database, or revision of laboratory procedures.

6.10. ORIENTATION TESTWORK


The properties of a mineralized deposit must be assessed early in the
exploration/development phase so that the correct sample preparation and assaying
techniques can be determined. This testwork must be done using samples that are
representative (to the best of the knowledge of the Project Geologist at that point in time) of
the mineralization in the deposit. It should be done according to the recommendations of an
experienced laboratory chemist and typically will include the following:

Analysis of mineralogy

This allows the laboratory chemist to make informed judgments regarding possible
problems that may arise in relation to certain assaying techniques. Such problems can be
related to the chemical nature of the deposit, where certain contained elements may
cause spectral interferences in the analyses, resulting in what is commonly referred to as
assay robbing. Problems can also arise due to the mineralogical nature of the deposit,
where the mineral containing the element(s) of interest is difficult to digest. An example of
this is refractory gold.

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Determination of gold distribution

These tests (which include screen fire assays) determine precious metal particle size and
the distribution of the various sizes. The tests are useful for indicating potential problems
associated with coarse gold and whether an ore will be free milling or refractory.

Heterogeneity testwork and development of a sample preparation flowsheet

Heterogeneity testwork on the mineralization will provide data for the development of a
Sampling Nomograph, from which the optimum sample preparation sequence can be
determined (see Appendix 6-6). Other types of testwork can be performed to determine
appropriate operating practices during individual sample preparation stages, such as the
optimum grind times required when pulverizing.

Determination of appropriate assay technique

This involves running a suite of samples using fire assay, acid digestion (aqua regia) and
cyanide leach techniques in order to determine if gold losses are likely to occur with any
particular technique.
In order to determine the best assay finishing method, the solutions extracted from the
various fire assay methods should be subjected to several different finishing methods to
determine if gold losses are occurring with any one method.

6.11. REFERENCES
Eames, J, 1999. Unrealistic expectations of assay results, in Good Project Wrong Assays,
Getting Sample Preparation and Assaying Right, papers presented at a Seminar on Quality
Assurance in Mineral Assaying (AusIMM AIG: Sydney).
Menne, D M, 1992. Assaying cyanide-extractable gold within an hour, and addressing effects
of preg- and assay-robbing, in Proceedings International Conference on Extractive Metallurgy
of Gold and Base Metals pp 369-380 (AusIMM: Melbourne).
Pitard, F, 1993. Pierre Gys Sampling Theory and Sampling Practice, Second Edition, CRC
Press, 528 p.
Radford, N W, 1987. Assessment of error in sampling, in Meaningful Sampling in Gold
Exploration, Bulletin No 7, pp 123 (AIG: Perth).

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APPENDICES

Photographs courtesy of Analabs, Kalgoorlie

APPENDIX 6-1
SPECIFICATIONS FOR ANALYTICAL CONTRACT

All analytical work carried out by a commercial Laboratory should be detailed in an analytical
contract agreed upon between Barrick and the Laboratory. This can be prepared by the sites
using a template obtained from the appropriate Barrick Department.
A section called Specification in the contract will need to be prepared by the Geologist and
this should clearly outline the following:

Type(s) of sample material being submitted.

Number of samples expected to be submitted on a daily, monthly and yearly basis.

Sample freighting arrangements.

Mineralogy of ore types (this affects the analytical techniques to be used).

Range of analytical values expected.

Analytical method to be used.

Sample preparation procedure to be used.

Any special precautions necessary for sample preparation.

Any special equipment to be purchased by Lab.

The quality control (QC) required at the Lab.

Percentage of repeats required by the Lab (usually 10%).

Levels of expected precision and accuracy.

Acceptable limit of detection.

Reuse of crucibles for fire assay.

Reporting format for assay results.

Reporting format for grind sizing results.

Reporting format for QC results.

Turnaround time required.

Lab audit inspections by Barrick personnel to be permitted without notice.

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Sample storage (length of time and disposal).

Sample return to site and freighting arrangements.

Insert clause in contract that Barrick will monitor the Labs performance with its own
QC program.

Insert clause in contract that the cost of re-analysis will be as follows:


Sample preparation and analysis errors are to the Labs account.

Checks initiated by Barrick which subsequently show problems with the original
Lab results will be paid for by the Lab.

Checks initiated by Barrick that are subsequently shown to verify the original Lab
results will be paid for by Barrick.

The Schedule of Rates should provide details of the following unit rates:
All sample preparation procedures which are likely to be used during the term of
the contract

All analytical procedures which are likely to be used during the term of the contract

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APPENDIX 6-2
SAMPLE PREPARATION EQUIPMENT

DRYING OVEN
An oven is used in the Lab to dry the samples prior to sample preparation and assaying. This
is necessary because the metal content of the samples must be reported on a dry weight
basis.
SPECIFICATIONS
Must be capable of taking the full sample submitted by Barrick

Must be capable of drying the sample to 0% moisture

Drying temperature is normally 120o 130o

Lower drying temperatures may be required for samples with high sulphides,
metallurgical concentrates, carbons or if mercury is present

Drying time is normally 12 hours but can vary depending on sample size and moisture
content

THE DRYING PROCESS

The samples in their original

calico bags are loaded onto trolleys

Samples are sometimes tipped into metal trays if bags are torn or if faster drying times
are required

If metal trays are used then metal identification tags are placed in each tray

The trolleys are wheeled into the oven

The oven should have a thermostat, timer, fan and an air extraction system

Once dried, the samples should be processed quickly so they do not draw in

moisture from the atmosphere

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ADVANTAGES

Trolleys minimize handling of sample bags


The wire mesh racks on the trolley allow better air circulation and quicker drying times
Use of calico bags by the Client allows direct drying of the bags at the Lab

DISADVANTAGES

Use of metal trays can introduce handling errors and contamination problems
Wet, clayey samples will require >>12 hours of drying time
Placing samples into open trays can lead to mix-ups and cross-contamination

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JAW CRUSHER
A jaw crusher is used in the lab to reduce the size of large fragments in a sample. It is an
intermediate stage where the sample is reduced to a smaller particle size in as short a time as
possible.
SPECIFICATIONS

Also known as Jaques, ESSA or chipmunk crushers


Used for core, rock face chips and stockpile samples
Continuous feed (no maximum sample size)
Maximum fragment size is 60mm
Final product size is around 12mm

THE CRUSHING PROCESS

The sample is fed into the top of the crusher


The crusher should not be overloaded
A moving plate (jaw) performs the crushing action
The sample descends through the crusher by the action of gravity
The sample is collected in a tray at the bottom of the crusher
The sample is tipped from the tray into its original bag
The crusher is cleaned by blowing out with compressed air

ADVANTAGES

A jaw crusher is a very quick method of reducing large rock fragments to a size which
can be put directly into a pulverizer.
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Easy to clean.

DISADVANTAGES

A jaw crusher can only reduce the fragments to about 12mm.

The jaws need constant tightening to maintain the gap at 12mm.

Sample hang-up can lead to cross-contamination if the crusher is not inspected and
cleaned between samples.

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NUGGET CRUSHER
A nugget crusher is used in the Lab to crush large samples prior to splitting. It can be used an
intermediate stage between jaw crushing and pulverizing.
SPECIFICATIONS

Also known as Rhino and Boyd crushers


Used for core and RC samples
Continuous feed (no maximum sample size)
Maximum fragment size is 25mm
Final product size is around 3mm

THE CRUSHING PROCESS

The sample is fed into the top of the crusher


The crusher can be choke fed
A double acting jaw performs the crushing action
The sample descends through the crusher by the action of gravity
The sample emerges at the bottom of the crusher into a splitter
A rotary splitter is ideally suited to the action of a nugget crusher
The assay split is tipped from the rotary splitter into a labeled bag
The crush residue is tipped from the waste tray into the original sample bag
The crusher is cleaned by blowing out with compressed air

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ADVANTAGES

A nugget crusher is a very quick method of reducing large samples to a size which can be
put directly into a pulverizer

Can reduce fragment size to around 3mm compared with a 12mm product from a jaw
crusher

Provides a cost effective intermediate crushing stage compared to pulverizing the total
sample

Attachment of rotary splitter reduces manual handling of the sample

Easy to clean

DISADVANTAGES

Maximum rock fragment size into a nugget crusher is much smaller than into a jaw crusher

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LABTECHNICS LM2 PULVERISER


A pulverizer grinds the sample to a size that is suitable for assaying. It is the final stage in the
sample preparation process. The LM2 is a puck and bowl pulverizer.
SPECIFICATIONS

Used for Grade Control samples


Maximum sample size is 1.0 to 1.2kg and NOT 2kg
Maximum particle size is about 10mm
Final product size is 90% passing 75 microns
Grinding time is typically 3 to 6 minutes with no upper limit

THE PULVERIZING PROCESS

The sample is placed in the bowl with the puck in place and the lid is locked on with a
pneumatic clamp
The sample falls through a hole in the puck and is ground between the puck and the
base and walls of the bowl by the vibrating action of the bowl
The LM2 is run for a preset time
The operator should check the pulp by feel and if still too coarse, continue grinding
The puck is removed with a crane
300g of pulp split is taken with a scoop and placed in a pre-numbered paper packet
As much as possible of the remaining pulp reject is scooped into the original sample
bag
The entire assembly is cleaned after each sample by vacuuming and/or by
compressed air
The LM2 is flushed, as required, by grinding a barren material, such as quartz, to
remove smeared gold

ADVANTAGES

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Homogenizes the sample as it grinds

Can pulverize up to 1.2kg of sample allowing total sample preparation for Grade
Control at a reasonable cost

Easy to clean

DISADVANTAGES

The grinding action on large gold particles is not as efficient as that of the Keegor mill,
causing smearing and requiring longer grinding times to break down the gold

Takes a smaller sample size than an LM5

Grinding efficiency reduces markedly if overloaded with sample

Loss of sample can be considerable if long grinding times are employed (> 12
minutes)

Complete sample loss occurs on rare occasions when the seal on the lid disintegrates

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LABTECHNICS LM5 PULVERISER


A pulverizer grinds the sample to a size that is suitable for assaying. It is the final stage in the
sample preparation process. The LM5 is a puck and bowl pulverizer. It is the largest in the LM
series and is often used for total sample preparation.
SPECIFICATIONS

Used for all samples


Maximum sample size is 2.5 to 3.5kg and NOT 5kg
Maximum particle size is about 10mm
Final product size is typically 90% passing 75 microns (finer with extended grind time)
Grinding time is typically 3 to 6 minutes with no upper limit

THE PULVERIZING PROCESS

The sample is placed in the bowl with the puck in place and the lid is locked on with a
pneumatic clamp

The sample falls through a hole in the puck and is ground between the puck and the
base and walls of the bowl by the vibrating action of the bowl

The LM5 is run for a preset time

The operator should check the pulp by feel and if still too coarse, continue grinding

The puck is removed with a crane

300g of pulp split is taken with a scoop and placed in a pre-numbered paper packet

As much as possible of the remaining pulp reject is scooped into the original sample
bag

The entire assembly is cleaned after each sample by vacuuming and/or by


compressed air

The LM5 is flushed, as often as required, by grinding with a barren material such as
quartz to remove smeared gold

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ADVANTAGES

Homogenizes the sample as it grinds


Can pulverize large samples allowing total sample preparation at a reasonable cost
Easy to clean

DISADVANTAGES

The grinding action on large gold particles is not as efficient as that of the Keegor mill,
causing smearing and requiring longer grinding times to break down the gold

Loss of sample can be considerable if long grinding times are employed (> 12
minutes)

Complete sample loss occurs on rare occasions when the seal on the lid disintegrates

Grinding efficiency reduces markedly if overloaded with sample (>3.5kg)

Not all pulp can be retrieved as the bowl is fixed and cannot be up-ended

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MIXERMILL 4010 PULVERISER


A pulverizer grinds the sample to a size that is suitable for assaying. It is the final stage in the
sample preparation process. The Mixermill 4010 is a puck, ring and bowl pulverizer. It is the
largest in the ring pulverizer series and can be used for total sample preparation.
SPECIFICATIONS

Used for all samples


Maximum sample size is 3.0 to 4.0kg
Maximum particle size is about 10mm
Final product size is typically 90% passing 75 microns
Grinding time is typically 3 to 6 minutes with no upper limit

THE PULVERIZING PROCESS

The Mixermill has a large and small grinding ring and a center puck

The sample is placed in the bowl with the puck and rings in place and the lid is locked
on with a pneumatic clamp

The sample is ground between the puck, rings and the base and walls of the bowl by
the vibrating action of the bowl

The Mixermill is run for a preset time

The operator should check the pulp by feel and if still too coarse, continue grinding

The puck and rings are removed

300g of pulp split is taken with a scoop and placed in a pre-numbered paper packet

As much as possible of the remaining pulp reject is scooped into the original sample
bag

The entire assembly is cleaned after each sample by vacuuming and/or by


compressed air

The Mixermill is flushed, as often as required, by grinding with a barren material to


remove smeared gold

ADVANTAGES

Homogenizes the sample as it grinds


Can pulverize large samples allowing total sample preparation at a reasonable cost
Can accommodate slightly larger samples than an LM5
Easy to clean (sharp edge and flat bottom allows better sample removal than LM5)
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DISADVANTAGES

The grinding action on large gold particles is not as efficient as that of the Keegor mill,
causing smearing and requiring longer grinding times to break down the gold

Grinding efficiency reduces markedly if overloaded with sample

Not all pulp can be retrieved as the bowl is fixed and cannot be up-ended

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KEEGORMILL PULVERIZER
A pulverizer grinds the sample to a size that is suitable for assaying. It is the final stage in the
sample preparation process. The Keegor mill is a vertical spindle pulverizer. It can be used for
total sample preparation.
SPECIFICATIONS

Used for all samples


Continuous feed (no maximum sample size)
Maximum particle size is about 10mm
Final product size is typically 90% passing 106 microns
Grinding time varies according to the hardness and size of the sample

THE PULVERIZING PROCESS

The Keegor mill has 2 grinding discs near its base, the top disc is fixed to the body and the
bottom disc is attached to a vertical spindle which rotates the disc

The gap between the grinding discs is preset to give a consistent grind size

The sample is introduced through the top feed chute and falls through a hole in the top
disc

The sample is ground between the 2 discs by an extremely abrasive shearing action

The sample is collected from the bottom chute into a tray and transferred into its original
bag

The sample must then be homogenized by roll mixing on a rubber mat

Cleaning is performed by an automatic blow down device and by grinding a barren


material after every sample

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ADVANTAGES

Can process any size sample because the process is continuous feed

Can produce a reliable particle size if discs are correctly set

Produces better grinding and less smearing of large gold particles than a puck, ring and
bowl pulverizer

DISADVANTAGES

Does not homogenize the sample as it grinds (the pulp must be roll-mixed on a rubber
mat after pulverizing)

Retains some sample in the cone and requires thorough cleaning between each sample

Cannot be readily opened up for inspection and cleaning between samples

The grinding action is very abrasive on the discs which can lose 1-2g of steel per kg of
sample

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RIFFLE SPLITTER
A riffle splitter is used in the Lab to reduce the volume of the assay split after each grinding
stage.
SPECIFICATIONS

The riffle splitter must produce a sample which is representative of the original sample
It is necessary to have at least 12 riffles in the splitter
There must be an equal number of riffles directed towards each split
The riffle width must be at least twice the largest particle in the sample
All riffles must be of equal width
The riffles must be easily accessible for cleaning after each sample

THE SPLITTING PROCESS

A suitable size riffle splitter is chosen

The entire sample must be put evenly through all the riffles at the one time

Each passage through the riffles reduces the sample by half, this is continued until the
required final size is reached

The halves are taken from alternate sides to avoid any bias in the equipment

The riffle splitter and the trays are cleaned with compressed air after each sample

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ADVANTAGES

Simple to use
Easier to vary size of final split than with a rotary splitter or cone splitter

DISADVANTAGES

Some dust is lost because the system is open


Labor intensive
Can cause gold segregation if sample handled too many times

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ROTARY SPLITTER
A rotary splitter is used in the Lab to reduce the volume of the assay split after a grinding
stage. This type of splitter is usually attached to a feeding device, for example, a nugget
crusher.
SPECIFICATIONS

The rotary splitter must produce a sample which is representative of the original
sample

The rotating speed must match the incoming sample stream from the feeding device

The rotary splitter receivers are usually pre-set to the required split proportions

The rotary splitter must be easy to clean after each sample

THE SPLITTING PROCESS

The feeding device and rotary splitter are turned on

The sample is fed into the feeding device

The sample leaves the feeding device by a chute

The sample enters the rotating receivers of the splitter and is automatically split into
the required proportions

The machines are switched off and the assay split and crush residue are bagged and
labeled

The rotary splitter and receivers are cleaned with compressed air after each sample

The following photograph illustrates a rotary splitter mounted underneath a nugget crusher:

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- feeder chute from nugget crusher

- assay split collected in receiver 1 (steel tray)

- grind reject collected in receiver 2 (white bucket


)

- rotating base plate drives the receivers

ADVANTAGES

Produces a more accurate split than a riffle splitter


Less labor intensive because can be mounted below the nugget crusher
Easy to clean

DISADVANTAGES

Some dust is lost because the system is open


Does not homogenize the sample
The splitting proportions are pre-set

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CONE SPLITTER
A cone splitter is used in the Lab to reduce the volume of the assay split after a grinding
stage. This type of splitter is usually attached to a feeding device, for example, a crusher.
Cone splitters are not widely used.
SPECIFICATIONS

The cone splitter must produce a sample which is representative of the original
sample

The sample must be dropped evenly over the point of the cone

The width of the receiver below the cone determines the weight of the split

The cone splitter must be easy to clean after each sample

THE SPLITTING PROCESS

The feeding device is turned on


The sample is fed into the feeding device
The sample enters the feed hopper of the cone splitter and is automatically split into
the required proportions
The assay split and crush reject are bagged and labeled
The cone splitter and receivers are cleaned with compressed air after each sample

ADVANTAGES

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Less labor intensive because it can be mounted below the crusher


Easy to clean

DISADVANTAGES

Not as accurate as a rotary splitter or a riffle splitter


Some dust is lost because the system is open
Does not homogenize the sample
The splitting proportions are pre-set

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APPENDIX 6-3
ANALYTICAL TECHNIQUES

FIRE ASSAY
INTRODUCTION
Fire assay is the oldest and, in most circumstances, still the best method for the determination
of precious metals in ores and metallurgical products. It is known that man had the capability
of refining metals from ores in the third millennium (2,600) BC and the basic procedures
employed in fire assay have not changed markedly since then.

Essentially the method consists of two consecutive pyrochemical separations. First, the finely
ground sample is fused with a suitable flux under reducing conditions, which promotes the
separation of the precious metals from the gangue, with simultaneous collection as a lead
alloy. Second, the lead is removed by an oxidizing fusion (cupellation) and the precious
metals are isolated and available for determination.
Fire assaying does not always guarantee full determination of the gold in the sample because
some ores contain minerals that can cause interferences and gold loss. A skilled fire assayer
can add flux reagents to overcome most of these problems. It is important to tell the Lab the
mineralogy of the ore type as this will allow them to modify their flux mixture as required.
PREPARING THE ASSAY CHARGE

The pulp split is accurately weighed into a container

The catch weight is automatically recorded by the LIMS software

Flux is added to the pulp split, the ideal sample to flux ratio being 1 : 5

The sample and flux charge is mixed thoroughly in an automatic tumbler

The sample and flux charge is then transferred into clay crucibles
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The crucibles are always arranged in the same order each time a batch is made up to
prevent mistakes in sample ordering during handling

FLUX REAGENTS AND FUSION PRODUCTS

A flux is a material (reagent) mixture that converts the minerals and complexes in the sample
into soluble forms which separate into molten metal and slag phases. A number of flux
reagents are used and these are classified as acid, basic or neutral and as oxidizing or
reducing.
Acids and bases in fire assay do not fit most of the usual acid-base definitions. The general
property that an acid plus a base gives a salt still partly applies, for example, when sodium
carbonate (a base) is fused with silica (an acid) the following occurs:
Na2CO3 + SiO2

Na2SiO3 + CO2

where sodium silicate is not a salt but a slag constituent.


The principal reagents used in fluxes are as follows:

Silica (SiO2) is the strongest acid reagent. It combines with the metal oxides to form
silicates which are the foundation of most slags.

Borax (Na2B4O7) is also a strong acid and fluxes all the metallic oxides, both acids and
bases. It has a relatively low melting point of 742C and effectively lowers the fusing
point of all slags.

Sodium Carbonate (Na2CO3) is a powerful basic flux and oxidizing agent.

Litharge (PbO) is a readily fusible basic flux and oxidizing agent and on being reduced
provides the lead necessary for the collection of gold, silver and PGMs. It melts at
883C and contains 92.8% lead.
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Flour (C6H10O5) is a reducing agent and is used in the flux to take up the oxygen from
litharge to produce lead:
12PbO + C6H10O5

Iron (Fe) is a reducing agent and desulphurizing agent:

As2S3 + 13Fe

2Fe5As + 3FeS

Potassium Nitrate (KNO3) is a powerful oxidizing agent:

12Pb + 6CO2 + 5H2O

4KNO3 + 5C

2K2CO3 + 3CO2 + 2N2

Silver (Ag) is added to the flux to increase the size of the prill so that it is easier to
handle. It also acts as a collector of Au and PGMs during fusion and cupellation.

THE FUSION

During the fusion the flux combines with the gangue to form a fluid slag, and the litharge in
the flux is reduced to minute globules of lead which are significantly more dense than the
molten flux. The rain of lead globules falling through the molten mass collects the particles of
precious metals and coalesces into a liquid button at the bottom of the crucible. The formation
of a good-sized lead button containing a minimum of contamination is the primary objective of
the fusion.

The batch of crucibles containing the sample and flux charges is placed in a furnace

The charges are melted at about 11000C

The fusion time is normally between 45 and 65 minutes

The crucibles are removed from the furnace five at a time and the molten material is
poured into an iron mould

It is at this stage that the fire assayer will notice any poor fusions

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The moulds are cooled and the solid contents are removed
The slag is broken to free the lead button
The lead buttons are placed into cupels, ready for the next stage

THE CUPELLATION
Cupellation is an oxidizing fusion of the lead button (which contains gold, silver and PGMs) in
an absorbent vessel called a cupel.

Cupels are made from iron-free calcined magnesia

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A batch of cupels containing lead buttons is placed in a muffle furnace (in a highly
oxidizing atmosphere)

The lead is heated to 9500C and oxidized to litharge (PbO)

Most of the litharge is absorbed by the cupel and the remainder volatilized

A small bead or prill of silver, gold and PGMs is left behind in the cupel

THE PARTING AND DETERMINATION

Parting is the process by which the gold and PGMs contained in the prill are separated from
the silver. During the prill formation, the gold and PGMs form a sponge-like lattice within the
larger bulk of the silver. Nitric Acid, which dissolves silver but not gold, is used to take the
silver into solution, leaving a gold sponge.
The PGMs are partly soluble in nitric acid and give indication of their presence at this stage.
Platinum gives the parting acid a brown to blackish colour and in alloy with gold produces a
steel grey instead of yellow sponge. Palladium yields an orange coloured solution in nitric
acid. Iridium appears in the parted gold as detached black specks.
Two alternative finishing methods are used gravimetric or AAS.
Gravimetric Part and Weigh Finish:

This is the traditional method for determining the gold content of the prill

The gold sponge which was produced by the parting process is washed with distilled
water

It is then annealed over a flame to produce a gold prill

The prill is weighed on a micro-balance

The gold grade of the assay split is calculated

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Gold prills produced by the gravimetric method

The gravimetric part and weigh finish is considered to be more accurate than an AAS finish
for grades > 0.2g/t. The micro-balance is prone to less calibration errors than an AAS
machine. This is more so for higher-grade samples outside the calibration range of the AAS
machine where dilution of the gold bearing solution has to take place.
AAS Finish:

An AAS finish is employed in most modern laboratories

The parting solution (containing nitric acid) is treated with hydrochloric acid to dissolve
the gold sponge and PGMs

This solution is directly aspirated into an AAS machine to read the gold concentration

Dissolution of gold sponge with acid mix on a hotplate

COMMON INTERFERENCES

The following elements can cause interference or gold loss (assay robbing) during fire
assaying:

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Sulphur interferes by forming a mixture of metallic sulphides, known as matte, above


the lead button. Matte contains some of the gold and silver with consequent loss to the
slag when the button is cleaned.

Nickel and Zinc are partially collected in the lead button and interfere during
cupellation when a ring of metallic oxide forms around the prill. This ring, called a
scoria, retains some of the gold.

Copper also collects with lead during cupellation and causes freezing of the copper lead - gold - silver alloy. Gold cannot be easily determined from the resulting prill.

Arsenic and Antimony form metallic arsenides and antimonides during fusion,
producing a spiesse phase on the lead button. Spiesse invariably contains some gold
and silver.

Tellurium interferes with cupellation by reducing the surface tension of the molten prill.
Gold is therefore lost by cupel absorption.

Carbon remaining unoxidized in the fusion forms a layer between the lead and slag
phases resulting in lead loss into the slag.

TECHNIQUES FOR OVERCOMING INTERFERENCES

Several techniques are available to overcome interferences in fire assay. The choice of the
technique may be problematic, especially when dealing with a material of unknown
composition. However, the assayer learns, from experience, which technique is most suitable
for specific ore types.

Acid Treatment is used to eliminate interfering elements by acid dissolution. Gold is


retained in the residue, separated by filtration and determined by fire assay. Acid
treatment finds its greatest application in the assaying of concentrates.

Roasting is a process in which the material is first heated in an oxidizing atmosphere


in order to convert metal sulphides to oxides and to remove volatile impurities. Unless
carefully controlled, gold may be lost through volatilization especially in ores
containing arsenic and antimony. The presence of chloride also increases the
possibility of loss by volatilization.

Fusion with Special Fluxes, combined with a reduction in sample weigh, is the most
practical way of overcoming interferences. The addition of reagents (other than those
necessary for the formation of a slag) provides enough excess reagent in the fusion to
neutralize the interference.

Potassium Nitrate is a powerful oxidizing agent and can be used to oxidize metallic
sulphides and carbon.

Metallic Iron is effective as a reducing and desulphurizing agent and is commonly


used on sulphde ores. The flux is further modified by increasing the sodium carbonate
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and limiting the litharge and borax. An iron matte is formed by the action of metallic
iron on the sulphide and this matte is dissolved by the excess alkaline flux.
Cu2S + Fe

2Cu + FeS

WHAT INFORMATION NEEDS TO BE SUPPLIED TO THE ASSAYER?

Once any of the interfering elements mentioned above (and particularly the metals) enter the
percent range, interferences with the gold determination can occur. Spot tests for the
presence of sulphides or carbonates are routinely performed by the Lab and quickly give the
assayer estimates of the interfering elements present.
General information regarding expected values of interfering elements can save the
Laboratory and the Geologist time and money.

TYPICAL FIRE ASSAY DETECTION LIMITS


COLLECTION

LOWER LIMIT
OF DETECTION
Lead
Gravimetric part and weigh
0.2 g/t *
Lead
Flame AAS detection
0.01 g/t **
Lead
DIBK extraction, flame AAS detection
0.001 g/t **
Lead
Graphite furnace, AAS / ICP-MS detection 0.001 g/t **
* (K. Renton, pers. comm.)
** (Eames, 1999)
PRECISION OF THE FIRE ASSAY TECHNIQUE

PRECISION
10%

FINISH

CONFIDENCE LEVEL
95%

GOLD CONCENTRATIONS
>50 times the detection limit
(Eames, 1999)

Where:

Precision is measured as 2 times the standard deviation divided by the mean of


the replicate assays, expressed in percent

The precision at the detection limit is very poor because errors are amplified,
therefore the calculation should not include replicates below a certain gold
concentration

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Section 6 Sample Preparation and Assaying


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ACID DIGEST
INTRODUCTION
Acid digest is also known as aqua regia digest and refers to the 2 acids used to dissolve the
gold in the sample nitric acid and hydrochloric acid. It relies on chemical dissolution of the
sample which in some cases is not as effective as the fusion performed in fire assay.

The technique is often used for grade control and mill samples because it is cheaper to use
than fire assay at a commercial laboratory. Many minesites set up their own site labs with acid
digest facilities because of the low capital outlay, simplicity of operation and faster assay
turnaround.
Care must be taken with certain ore types because the digest is affected by some minerals
and elements. A strict adherence to procedures must be followed during routine analysis to
prevent only partial digestion of the sample.
PREPARING THE ASSAY CHARGE

The pulp split is accurately weighed into a beaker

The catch weight is automatically recorded by the LIMS software

A batch of samples is made up, the number usually determined by the size of the hot
plate

PRE-ROAST

It is necessary to pre-roast samples containing elevated sulphides and carbon to liberate the
gold:

Pre-roasting is performed in a muffle furnace at about 6500C

Care must be taken not to overcook iron sulphides as this can cause gold lockup in
the resulting iron oxide

THE DIGEST

The digestion process relies on free chlorine provided by the aqua regia to dissolve the gold:

Concentrated nitric acid is added first and this will commence dissolution of sulphides,
etc

Once the reaction has subsided, concentrated hydrochloric acid is added and this
forms aqua regia with the nitric acid

The beakers are placed on a hotplate at near boiling temperature

Digestion time is about 1.5 hours


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The beakers are removed from the hotplate and allowed to cool

The solution is further treated with acids to remove interferences (e.g. orthophosphoric
acid is added to suppress iron)

The clear solution is decanted into test tubes

THE EXTRACTION

Gold is extracted and concentrated from the aqueous solution into an organic solvent to
produce a solution that is free of elements which can cause major interferences during
measurement:

The organic solvent used is Di Iso Butyl Ketone (DIBK)

DIBK is added to the aqueous solution

The test tubes are shaken in a mechanical mixer for a set period of time to ensure full
extraction

THE DETERMINATION

The DIBK solution is aspirated directly into an AAS machine to measure the gold
concentration.
COMMON INTERFERENCE AND EXTRACTION PROBLEMS
The following procedures, minerals and elements can cause incomplete digestion and
extraction of the gold:

Pulp is too coarse causing gold particles not to be liberated

Cold spots on the hotplate will result in poor digestion

Inadequate shaking of the aqueous/DIBK mixture will cause poor gold extraction

Silicates and carbonaceous minerals are not attacked by aqua regia and may enclose
gold particles

Significant quantities of sulphides and carbonates can require extra reagent for
complete dissolution

Sulphides can cause acid overflow (and gold loss) on the hotplate

Gold associated with copper and tellurium can be lost through fuming of the
dichlorides in a poorly executed digest

Samples high in iron oxides (particularly magnetite) will cause inadequate digestion

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CHECKS WITH FIRE ASSAY

Acid digest results need to be regularly checked by fire assaying. Eames, 1999, states that a
comparison of acid digest results with fire assay results over several years has shown that
acid digest only recovers about 90% of the gold. High-Fe matrix samples (such as laterites)
commonly show aqua regia Au results which are only 70 - 90% of fire assay results.
TYPICAL ACID DIGEST DETECTION LIMITS
EXTRACTION

25g, DIBK
50g, DIBK
25g, DIBK
50g, DIBK
25-100g, DIBK

FINISH

Flame AAS detection


Flame AAS detection
Graphite furnace, AAS detection
Graphite furnace, AAS detection
Zeeman graphite furnace, AAS detection

LOWER LIMIT
OF DETECTION
0.02 g/t
0.01 g/t
0.001 g/t
0.001 g/t
0.0001 g/t
(Eames, 1999)

PRECISION OF THE ACID DIGEST TECHNIQUE


PRECISION
15%

CONFIDENCE LEVEL
95%

GOLD CONCENTRATIONS
>50 times the detection limit
(Eames, 1999)

Where:

Precision is measured as 2 times the standard deviation divided by the mean of


replicate assays, expressed in percent

The precision at the detection limit is very poor because errors are amplified,
therefore the calculation should not include replicates below a certain gold
concentration

CYANIDE LEACH
INTRODUCTION
The cyanide leach technique was developed as a cost-effective method of determining gold in
large samples. In Exploration, the Bulk Leach Extractable Gold (BLEG) method is used on
soil samples up to 10kg in size. The mill uses Bottle Rolls in testwork on ore samples to
simulate gold recovery in a CIP plant.

For grade control, some mining operations use an accelerated cyanide extraction technique
for assaying gold. This is known by various names, such as:

CLASS (Cyanide Leach Accelerated Solvent Separation).


Leachwell (after the catalyst LeachWELLTM 60X).

Gold extraction is performed in less than 1 hour, thus allowing a quick turnaround time for
results. The advantage over other assaying techniques is the ability to use large assay
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Section 6 Sample Preparation and Assaying


Edition 1 - November, 2002

charges up to 1kg in weight. However, the cyanide extraction is only partial, so is not suitable
when a total gold content is required. The partial extraction mirrors the performance of a CIP
or CIL plant.
PREPARING THE ASSAY CHARGE

The standard assay charge weights used are 250g, 500g or 1000g

The pulp split is accurately weighed into a plastic bottle

The catch weight is automatically recorded by the LIMS software

A batch of samples is made up, the number usually determined by the size of the
mixing machine

THE LEACHING

Gold is dissolved by sodium cyanide according to the following equation:


4Au + 8NaCN + O2 + 2H2O

4NaAu(CN)2 + 4NaOH

Only gold particles that come into physical contact with the cyanide solution are available to
be taken into solution. Gold bound in a mineral matrix is not available for dissolution.
A catalyst called LeachWELLTM 60X is used to accelerate the normal cyanidation reaction
time by 60 times. The leaching procedure is outlined below:

Water is added to the sample in the plastic bottle


Two LeachWELLTM 60X tablets are added to each bottle causing the water to turn pink
The bottles are placed in a mechanical tumbler and mixed for 1 hour

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THE EXTRACTION
Gold is extracted and concentrated from the aqueous solution into an organic solvent to produce a
solution that is free of elements which can cause major interferences during measurement:

The organic solvent used is Di Iso Butyl Ketone (DIBK)

DIBK is added to a 10ml aliquot of the aqueous solution

The test tubes are shaken in a mechanical mixer for a set period of time to ensure full
extraction

THE DETERMINATION
The DIBK solution is aspirated directly into an AAS machine to measure the gold concentration.
COMMON INTERFERENCE AND EXTRACTION PROBLEMS
The following procedures and minerals can cause incomplete leaching and extraction of the gold:

Pulp is too coarse causing gold particles not to be liberated

Inadequate shaking of the aqueous/DIBK mixture will cause poor gold extraction

Gold which is refractory (no exposed surfaces) such as in arsenopyrite cannot be leached

Cyanide and oxygen consuming minerals such as malachite, azurite, pyrrhotite and pyrite
can deplete the reagents so that leaching of the gold is incomplete

Organic carbon interferes with the cyanide leach

Normal cyanide extraction can suffer from the following additional problems:

Very coarse gold particles are not dissolved in the time allocated to a standard extraction.

Preg-robbing can occur where the extraction process proceeds for too long allowing
dissolved gold to be progressively locked up by gold-attracting minerals. This has been
documented with certain ores containing clays, Fe, Cu, Co and Ni (Menne, 1992).

The fast action of LeachWELLTM 60X plus high cyanide concentration will generally prevent these
two problems from developing.
CHECKS WITH FIRE ASSAY
Cyanide extraction results need to be regularly checked by fire assaying.
An alternative technique to screen fire assaying for determining total gold in a large sample, but at
a lower cost is:

Accelerated cyanide leach on 1,000g


Fire assay on 50g of the residue remaining after leaching

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TYPICAL CYANIDE LEACH DETECTION LIMITS


A lower detection of 0.02g/t can be expected with accelerated cyanide leach. Other cyanide bulk
leach techniques can detect gold down to 0.0002g/t.
PRECISION OF THE CYANIDE LEACH TECHNIQUE
The precision of the accelerated cyanide leach technique can be as good as fire assay and acid
digest. The unknown factor that will have a detrimental effect on the precision is the amount of
gold in the sample which cannot be consistently leached.
ACCURACY OF THE CYANIDE LEACH TECHNIQUE
The accelerated cyanide leach technique cannot extract all of the gold in a sample. Therefore:

The accuracy of the total gold determination will be poor

However, the accuracy will be high with regard to cyanide extractable gold (e.g. if
comparing to a CIP plant)

Accuracy will also be improved (e.g. compared to fire assay) if the pulp is not homogeneous
because a large sample size is used.

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APPENDIX 6-4
SCREEN FIRE ASSAYING
INTRODUCTION
The first sign of coarse gold in an ore type is poor repeatability of the 50g fire assay replicates
in a quality control campaign. Screen Fire Assaying is a technique that can accurately
determine the gold grade of a sample containing coarse gold particles (or nuggets). It also
gives an indication of the amount of the problematic coarse gold, as a proportion of the total
gold in the sample.

The technique is performed as follows:

A 1kg pulp split is taken for screen fire assaying

This is put through a sieve of nominated mesh

The coarse sizing and fine sizing are weighed separately

The coarse sizing (containing the coarse gold particles) and sieve cloth are fire
assayed in total using 50g charges

The grade of the fine sizing (which forms the largest proportion of the split by weight)
is determined by taking 3 x 50g assay charges and averaging their grades

The grades of the coarse sizing and fine sizing are combined in proportion to their
original weights to give the grade of the 1kg pulp split

Additional information on gold distribution can be obtained if 2 or more sieves are used.
Screen fire assaying is an expensive but necessary part of any orientation testwork. The cost
of a screen fire assay is determined by the time taken to grind, sieve and weigh the sample
and the number of fire assays in each sample. Care must be taken to outline the exact Barrick
required procedure to the lab as there are many shortcuts that the Labs use to keep their
costs down.
PROCEDURE USING 2 SIEVES

The procedure described below is the usual format that should be requested at Barrick
minesites for orientation-type testwork.
1. Grind Check

It is necessary to determine how much +75 micron material will be generated. This
should be <100g to keep assaying costs down. Proceed as follows:

Take 100g of pulp and determine the grind size by wet sieving
If <90% passing 75microns, the pulp will need to be pulverized further

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2. Screening

Split out approximately 1kg of pulp and record the pulp weight
Screen the pulp using 106 and 75 sieves
Screen entire pulp
Weigh each sizing:
+106
-106 + 75
-75

3. Fire Assaying with gravimetric finish

Fire assay the entire +106 sizing and use a gravimetric finish. Do not regrind and
resieve this sizing to make it smaller. Calculate the grade of the +106 sizing

Fire assay the entire -106 + 75 sizing and use a gravimetric finish. Do not
regrind and resieve this sizing to make smaller. Calculate the grade of the -106 +
75 sizing

Perform 3 fire assays on the -75 sizing using 50g assay charges and a
gravimetric finish. Calculate the grade of this sizing as an average of the 3 x 50g
assay charges

Calculate the weighted average grade of each pulp by combining the grades of the
+106, the -106 + 75 and the -75 sizings using the sizing weights as weighting
factors

4. Presentation of Results
SCREEN FIRE ASSAYS
Deposit:
SIZINGS

Column 1
+106
-106+75
-75
TOTALS

Pulp Number:
Pulp Weight:

SIZING AND ASSAY CHARGE


GOLD RECOVERED FROM ASSAY CHARGES
WEIGHTS
Total
Assay
Assay
Assay
Assay
Assay
Assay
Assay
Total
Grade
Weight Charge Charge Charge Charge Charge Charge Charges
Au
Au
(g)
1(g)
2(g)
3(g)
1(mg)
2(mg)
3(mg)
1-3(mg)
(mg)
(g/t)
Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column10 Column11

50g

50g

50g
WEIGHTED AVERAGE GRADE Au (g/t)

Notes:
Column 2: Weight of entire sizing
Column 9: Add Columns 6, 7, 8
Column 10: Weight of Au (mg) in entire sizing = [Column 9 x Column 2]
[Columns 3+4+5]
Column 11: Grade of Au (g/t) in entire sizing = [Column 10 x 1000]
Column 2
WEIGHTED AVERAGE GRADE Au (g/t) = average the sizing grades in Column 11 using the sizing
weights in Column 2 as weighting factors

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SCREEN FIRE ASSAYS - SUMMARY


Deposit:
PULP
No

ORIGINAL
GRADE
(for comparison)

+106

SIZING GRADES
Au (g/t)
-106+75

-75

WEIGHTED AVERAGE
GRADE
Au (g/t)

5. OTHER ASSAYING OPTIONS


Cost savings can be achieved for non-orientation screen fire assaying by modifying the above
procedure in the following areas:

One sieve may be used instead of two

An AAS finish may be used instead of a gravimetric finish

The 3 assay charges from the fine sizing may be assayed by acid digest, however, this
is not recommended as additional errors are introduced by mixing 2 assaying
techniques

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APPENDIX 6-5
LABORATORY AUDIT FORM

LABORATORY AUDIT FORM


To be used with Assay Procedure notes (section 6, Laboratory Audit)

Laboratory Name:

Laboratory Manager:
Address:

Phone:

Fax:

E-mail:

PERSONNEL CONDUCTING AUDIT

DATE

ACTION LIST

Deadline Completed

1.

2.

3.

4.

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5.

SAMPLE RECEIVING AND SORTING AREA


AREA

Size:
Layout:

HANDLING &
SORTING
PROCEDURE

System:

Sample No Recording:

LIMS

Data Tracking:

STAFFING

Numbers:

LIMS = Laboratory Information Management System

SAMPLE PREPARATION AREA


CAPACITY/SHIFT

No Samples:

AREA

Size:
Layout:

CLEANLINESS

General:
Dust Control:
Ventilation:

SAMPLE
DRYING

Type:
Capacity:
Method of Loading and Unloading:

FACILITIES
Drying Time:

Drying Temperature:

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EQUIPMENT
CRUSHERS

Type:

Condition:

PULVERIZERS

Type:

Condition:

SPLITTERS

Type:

Condition:

EQUIPMENT SPECIFICATIONS

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CRUSHERS

Maximum Particle Size:

PULVERISERS

Maximum Sample Capacity:

Actual Sample Weight Used:

No Pulverising Stages:

Grind Time:

Grind Size:

Method of Pulp Subsampling:

SPLITTERS

Compatibility With Particle Size:


Riffle Configuration:
Rotary Splitter Configuration:

EQUIPMENT CLEANING
CRUSHERS

Method:

Cleaning Material:

PULVERIZERS

Method:

Cleaning Material:

SPLITTERS

Method:

Cleaning Material:

LABORATORY QUALITY CONTROL (QC)


SAMPLE
Frequency:
DUPLICATION
GRIND SIZE:

Frequency of Testing:

How (by feel / wet sieve / dry sieve):

- CRUSHERS
- PULVERIZERS
RECORDING OF
QC RESULTS
STAFFING

Numbers:

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FIRE ASSAY FACILITY


CAPACITY/SHIFT

No Samples:

AREA

Size:
Layout:

FUSION

Type:

FURNACES

Batch Size:
Condition:

CUPEL

Type:

FURNACE

Cupel Capacity:

CRUCIBLE SIZE
Catch-Weight or Exact:

CHARGE SIZE
FLUX

Composition:
Mixing System:
Sample : Flux Ratio

TREATMENT OF PROBLEM ASSAYS


SAMPLE ID SYSTEM
BATCH MAKEUP

No Assay Samples:
o

N Standards:

No Duplicates:
o

N Blanks:

Grades of Standards:

FUSION TIME
CRUCIBLE REUSE

Grade(g/t):

PRILL DIGEST

Acid Mix:

Condition:

Time:

SOLUTION FOR AAS

Aqua Regia / DIBK:

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ACID DIGEST FACILITY


CAPACITY/SHIFT

No Samples:

AREA

Size:
Layout:
Cleanliness:
Fume Hoods:
Distilled Water Source:

PRE-ROAST

Crucible Capacity:

FURNACE

Condition:
Catch-Weight or Exact:

CHARGE SIZE
DIGEST MAKEUP

Temperature:

Acids:

Which Acid Added First:

Batch Size:

TREATMENT OF PROBLEM ASSAYS


SAMPLE ID SYSTEM
BATCH MAKEUP

No Assay Samples:

No Duplicates:

No Standards:

No Blanks:

Grades of Standards:

DIGEST

Digest Time:
Hotplate Temperature Monitoring:

FURTHER TREATMENT

Orthophosphoric Acid:

EXTRACTION

Aqua Regia / DIBK:


Mixing Method:

CHECKS BY FIRE ASSAYING

Frequency:

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INSTRUMENT FACILITIES
CLEANLINESS
WEIGHING BALANCE

Type:
Manual/Auto to LIMS:

MICRO-BALANCE
AAS MACHINE

Make/Model:

OTHER INSTRUMENTS

CALIBRATION OF
AAS MACHINE

Type of Standards:
Grade of Standards:
Storage of Standards:

UPPER GRADE OF AAS (BEFORE DILUTION)


RECORDING AAS RESULTS

Manual/Auto to LIMS:

SAMPLE STORAGE
AREA

Size:
Layout / Access:

PULP STORAGE

Storage Period:
ID / Layout / Access:
Dispatch System:

REJECT STORAGE

Storage Period:
ID / Layout / Access:

ORGANIZATION

General:

SAFETY ISSUES
GENERAL

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QUALITY CONTROL METHODS


STANDARDS AND BLANKS
FIRE ASSAY

Type:

Frequency of use:

Grades used:

ACID DIGEST

Type:

Frequency

Grades used:

CYANIDE LEACH

Type:

Frequency

Grades used:

AAS MACHINE

Type:

Frequency

Grades used:

Other

Type:

Frequency

Grades used:

WHEN IS A BATCH REASSAYED


SAMPLE PREP DUPLICATES

Which Stage:
Frequency of use:

PULP DUPLICATES

Which Stage:
Frequency of use:

INTERLABORATORY TEST
PROGRAM PARTICIPATION

Outside:
In-house:

QC MANAGER
QC DATA

Labs Data Assessment and Presentation:


Inspection of QC Data by Audit Team:

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Section 6 Sample Preparation and Assaying


Edition 1 - November, 2002

DATA HANDLING
LABORATORY INFORMATION
MANAGEMENT SYSTEM (LIMS)

Type:

LABORATORY
DATABASES
AND RECORDS

REPORTING
FORMAT

Assays:

Grind Checks:
QC Results:

DATA
TRANSMISSION

Email:
Fax:
Post:

INVOICING
SYSTEM

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LABORATORY PERSONNEL
TOTAL NUMBERS
WORKING SHIFTS
Chemist:
JOB
CLASSIFICATIONS
AND PERSONNEL Fire Assayer:
QUALIFICATIONS
Supervisors:

TRAINING

TURNOVER

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APPENDIX 6-6
HETEROGENEITY TESTWORK

The three areas that affect assay quality are sampling, sample preparation and analysis. In
general terms, the errors in sampling are the largest, but are often difficult to reduce. With
good laboratory practices, errors in analysis should be small, but the errors in sample
preparation are often much higher. Improving sample preparation is the easiest way to
achieve an overall improvement in data quality.
SAMPLING THEORY
How can sample preparation be improved? There are three basic areas to be critically
examined; sample size, the fineness of the sample at each split and the method used to split
the sample. Also to be considered is the cost of any improvements, in terms of the capital
cost for any additional equipment and any extra labor cost for processing each sample.

The effects of increasing sample size and reducing particle size are both included in Pierre
Gys equation:

S2FE = Cd3 (1/MS 1/ML)


Where:
S2FE
is the fundamental error
.................................................................................................... expressed as a variance
C
is a constant
d
is the diameter in cm of the
largest particles in the sample (D95)
MS
is the sample mass
ML
is the total mass from
which the sample is taken

For any given mineral deposit; the two factors that can be varied are the weight MS to be
taken as a sample and the top particle size d (usually at the 95% passing screen size). The
variance S2FE is reduced as sample weight MS is increased and particle size d is reduced.
What is often overlooked is that the factor d is cubed in the equation.
Doubling the sample weight halves the variance, reducing the particle size by half reduces the
variance by a factor of 8. Particle size reduction is far more effective than increasing
sample size if you want to reduce errors.
The steps in a sample preparation procedure can be quantified in a sampling nomograph.
HETEROGENEITY TESTWORK

Heterogeneity testwork is carried out on an ore type to provide the base information (i.e. S2FE ,
C and d) from which a sampling nomograph can be constructed using Gys sampling formula
described above.
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A heterogeneity test is usually performed on a large ore sample (>200kg) and is carried out
by a Reference Laboratory. The cost of each test is about usually several thousand dollars.
Further costs are incurred producing the nomograph. A format which can be followed for a
heterogeneity test can be obtained from the following internal company report:
Mandyczewsky, A and Rowley, M. 1999. Report on Heterogeneity Testwork, New Holland
South Ore. Lawlers Gold Mine.
SAMPLING NOMOGRAPH

A sampling nomograph has the following useful features:

It can be used to design a sample preparation procedure that obeys the rules of
sampling theory

It can be used to estimate the sampling errors associated with each sample
preparation step

If compromises are required because of practical constraints, it can be used to


determine the steps which will cause least sampling errors

An example of a sampling nomograph with a sample preparation path is shown below:


SAMPLING NOMOGRAPH
showing RC sampling practice

0.100000

Variance of Fundamental Error (S

FE)

1.000000

0.010000

0.001000

0.000100

1.7
6.3
3.3
mm
5m
5m
(10
m
m(
me
6m
sh
es
)
1.0
h
)
mm
(16
me
sh
0.7
)
1m
m(
24
me
sh
0.4
)
25
(35
me
0.3
sh
mm
)
(48
me
0.2
sh
12
)
mm
(
6
0.1
5m
5m
es
h)
m(
10
0m
0.1
06
esh
mm
)
(15
0.0
0m
75
es
mm
h)
(20
0m
es
h)

1
10
.5m 2.7m
m
m

25
.4m
m

50
mm

Split to 3kg
Safety Line(FE=+/-16%)
Safety Line(FE=+/-10%)

30kg Drill
Sample

Pulverize
in LM5

Fire
Assay

0.000010

Subsample
50g
0.000001
10

10
0

1,0

00

10

,00
0

Sample Mass (Ms) grams

10
0

,00
0

1,0

00
,0

10
00

,00
0,0

00

Note: This nomograph indicates that the first sampling step (splitting the RC sample to 3kg) introduces an
unacceptable sampling error because the sample is now well above the safety line. The last sampling step
(splitting the RC sample from 3kg to 50g) will generate a very low sampling error because the entire sample was
pulverised to 75 microns and this is well below the safety line.

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Edition 1 - November, 2002

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 7

QA/QC
for

Assaying and Sampling

Section 7 QA/QC for Assaying and Sampling


7.1. INTRODUCTION ...........................................................................................................7-1
7.2. QA/QC OVERVIEW ......................................................................................................7-1
7.3. QUALITY CONTROL PROCEDURES..........................................................................7-4
7.3.1. STANDARD REFERENCE MATERIALS ...............................................................7-4
7.3.1.1. Properties ..........................................................................................................7-6
7.3.1.2. Preparation of Standard Reference Materials....................................................7-7
7.3.1.3. Certificates of Analysis for SRM's ......................................................................7-9
7.3.1.4. Insertion of SRM's in Sample Analysis Stream................................................7-10
7.3.2. BLANKS ...............................................................................................................7-10
7.3.2.1. Properties ........................................................................................................7-11
7.3.2.2. Preparation of Blanks ......................................................................................7-11
7.3.2.3. Insertion of Blanks in the Sample Analysis Stream .........................................7-12
7.3.3. GRIND CHECKS..................................................................................................7-13
7.3.3.1. Grind Check Procedures..................................................................................7-14
7.3.3.2. Frequency of Grind Checking .........................................................................7-15
7.3.4. CHECK ASSAYING .............................................................................................7-16
7.3.4.1. Check Assaying Procedures............................................................................7-17
7.3.5. CHECK SAMPLING .............................................................................................7-17
7.3.5.1. Check Sampling Procedures ...........................................................................7-18
7.4. ASSESSMENT AND INTERPRETATION OF QC DATA ...........................................7-19
7.4.1. MEASUREMENT ERRORS .................................................................................7-20
7.4.2. ACCURACY AND PRECISION............................................................................7-21
7.4.3. PRESENTATION OF QC DATA ..........................................................................7-22
7.4.3.1. Immediate Assessment and Action..................................................................7-23
7.4.3.2. Full Documentation ..........................................................................................7-23
7.4.4. GRAPHS ..............................................................................................................7-24
7.4.4.1. Line Graphs ....................................................................................................7-24
7.4.4.2. Scatter Plots ....................................................................................................7-26
7.4.4.3. Thompson-Howarth Graphs.............................................................................7-27
7.4.4.4 Other Graphical Methods.................................................................................7-28
7.4.5. DATA INTERPRETATION ...................................................................................7-28
7.4.5.1. SRM Data Interpretation ..................................................................................7-29
7.4.5.2. Blank Data Interpretation .................................................................................7-31
7.4.5.3. Grind Check Data Interpretation ......................................................................7-34
7.4.5.4. Check Assay Data Interpretation .....................................................................7-35
7.4.5.5. Check Sample Data Interpretation...................................................................7-39
7.5

REFERENCES ............................................................................................................7-43

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Section 7 QA/QC for Assaying and Sampling


Edition 1 November, 2002

APPENDICES
Appendix 7-1
Appendix 7-2

Example of assay data for standard


Example of assay data for check sampling

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Edition 1 November, 2002

7.1. INTRODUCTION
The concept of Quality Assessment and Quality Control (QA/QC) can be applied to any form
of data collection, data or geological interpretation, estimation, planning, scheduling, or design
process. For example, the daily execution by the operators of a mine plan and schedule is an
activity that requires constant evaluation by both the Mine and Mine Engineering
Departments. The mine engineers must confirm that the mine foreman and shift bosses are
implementing the mine plan and schedule as designed. If the shift bosses are constantly
having to juggling the plan in order to meet the schedule, then the two departments have to
determine the reason (Quality Assessment, or QA). Once the problem is identified, steps
then are taken either to revise the plan and schedule or, perhaps, to add an additional truck to
night shift (Quality Control, or QC).
Although QA/QC can be applied to any operating activity, it is most commonly applied to
sampling and assaying, as discussed in this section of this reference volume. Here, QC is
achieved by following good work practices and set procedures. Examples of these activities
include:

Cleaning out the splitter on the drill rig after each sample to control contamination.

Making sure field assistants are properly trained in their duties.

Validating the data entered into the geological database.

Ensuring that the sample preparation section of the assay laboratory is following
prescribed procedures.

An integral part of Barricks quality control procedures are the checks that have been put in
place to monitor the accuracy of the primary assay data produced by a laboratory. Although
each laboratory will have its own quality control procedures, these procedures are separate
from the quality control measures undertaken by Barrick, and at no time should the laboratory
QC procedures supplant Barricks own.
Quality assessment is the interpretation of the quality control data to determine if the results
(in this case, assays) meet the required minimum standards set by Barrick.

7.2. QA/QC OVERVIEW


The quality of the primary assay data is measured and controlled by the following methods:
1. The use of standards (standard reference material, or SRM), blanks, and check
samples to determine the accuracy of the assaying procedures at the laboratory.
2. The performance of grinding checks on selected pulps to determine if the sample
preparation at the laboratory is adequate for producing assay pulp splits of uniform
particle size.
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3. Submission of check assays to a secondary laboratory to determine whether there is


assay bias at the primary laboratory.
4. The selection and preparation of check samples (new assay pulps prepared from
coarse rejects) to determine if the primary pulp split delivered to the laboratory is
representative of the original sample.
The data generated by these methods then are compiled and analyzed by individual method.
For example, the check assay data are compiled, along with the original assay data from
laboratory reports, both sets of data are graphed and then interpreted to determine if the
comparison between the check assay and original data is satisfactory, using a standardized
set of graphical and statistical criteria. If these comparisons are satisfactory, this gives the
Project Geologist the assurance that the primary assay data are acceptable for use in
resource estimation and other areas. If the comparisons are not satisfactory, the graphical
and statistical analyses are likely to give the geologist an indication of which of the data are
suspect, so that the issues can be addressed before they have a significant financial impact
on the estimation of resources or mine operations. Further reading on this subject can be
found in MRDI, 1996, and Stanley, 1999 (see Section 7.5, References).
An explanation of the sampling and assaying quality control process currently followed by
most Barrick operations is outlined in the following flowcharts.

REVERSE CIRCULATION

DRILL
GENERATION

DIAMOND CORE

Split

Insert Standards
and Blanks

Primary
Assay
Split

Field
Reject

PRINCIPAL
PRIMARY
LAB
LAB

PRIMARY
ASSAY

Select 5% of
Pulp Split
(insert Standards
and Blanks)

Sample
Farm

Select 5% of RC
Field Rejects

UMPIRE
SECONDARY
LAB
LAB

Select 2 - 5% of
Half Core

CHECK ASSAYS

Resplit

Insert Standards
and Blanks

Assay
Split

PRINCIPAL
PRIMARY
LAB
LAB

CHECK
SAMPLE

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Quality Control Flowchart


QUALITY CONTROL METHODS USED
Original
Sample

PRIMARY SAMPLING AND ASSAYING - This is the process of collecting the


samples at the minesite and the sample preparation and assaying undertaken
at the primary laboratory. The assay results will contain cumulative errors
resulting from the sampling, sample preparation and assaying. The QC
methods outlined below are designed to detect and measure these errors.

Assay
Split

.
Total
Sample
Prep

Crush
Split

GRIND CHECKS - are performed after each crushing and pulverising stage to
determine if the particle size reduction is adequate. The particle size is critical
to achieving a homogeneous pulp split.

Pulp
Split

Assay A

Au 1

Au 2

Au(etc)

CHECK ASSAYING BY PRIMARY LAB - is a measure of the primary


laboratory's assay precision and a good indicator of the homogeneity of the
pulp. This is not a Barrick QC procedure but is useful for the Geologist to
examine.

Assay B

CHECK ASSAYING AT SECONDARY LAB - gives an indication of assay bias


between the primary laboratory and the secondary laboratory. The bias is
relative between the laboratories and does not tell us the accuracy of the
results. Refer to the SRM results to determine laboratory accuracy.
Au 1

Au 2

Au(etc)

CHECK SAMPLING AT PRIMARY LAB - is undertaken to determine whether


the assay split taken from the original sample is representative of that sample.
A second assay split is taken from the original sample using exactly the same
sampling technique. This second split prepared and assayed by the primary
laboratory using exactly the same methods used for the original sample. Any
errors should therefore be due to the sampling protocol and this can then be
modified. Coarse gold can cause significant sampling problems.

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The suggested quality control measures that should be undertaken at each site are shown
below.

SECTION
DEVELOPMENT

GRADE
CONTROL

STANDARDS BLANKS
(SRMs)

GRIND
CHECKS

CHECK
SAMPLING

CHECK
ASSAYING

DRILLING
(RC & DC)

5%

2%

1%

RC 5%
DC 2%

5%

DRILLING
(RC & DC)

5%

2%

1%

RC 5%
DC 2%

5%

SLUDGE
DRILLING

5%

2%

1%

5%

UG FACE
SAMPLING

5%

2%

1%

5%

BLAST
HOLES

5%

2%

1%

5%

5%

DITCH
WITCHING

5%

2%

1%

5%

5%

STOCKPILE
SAMPLING

5%

2%

1%

5%

The percentage shown indicates the number of checks to be performed per 100 primary samples.

For example, the 5% insertion rates for SRMs, as shown above, equates to one standard per
20 samples submitted to the laboratory. The percentages for check samples and check
assays are considered to be the industry-accepted minimum for a QA/QC program.
SRMs and blanks should be submitted blind where possible, since the intent of a QA/QC
program is to check the laboratory under normal operating conditions, with the laboratory
giving no more attention to a blank or standard than to any other sample. This is easier said
than done, as a single SRM sample pulp envelope stands out when submitted with 20 sample
sacks containing random-sized pieces of diamond drill core, for example. This easily flags
the SRM for the laboratory, and may result in the laboratory giving the SRM special attention
and care (such as running duplicates of the SRM pulp) relative to the other samples. Little
can be done about this, since it is important for the standard to be included in the lot of 20 drill
core samples, in this particular example.
It is easier to submit blanks blind to the laboratory. Samples known to lack any gold from
previous sampling, for example, drill core splits of quarter core or rig splits of RC samples
(see Section 4.15.3.2 of this reference volume), can be used for this purpose. Because the
blanks have the appearance of a routine sample, there is less chance of the laboratory
identifying them.

7.3. QUALITY CONTROL PROCEDURES


7.3.1.

STANDARD REFERENCE MATERIALS

A standard is defined in ISO Guide 35: 1989(E) as:

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a material or substance, one or more properties of which are sufficiently well


established to be used for the calibration of an apparatus, the assessment of a
measurement method, or for assigning values to materials.
For QA/QC programs designed to check the performance of assay laboratories, this definition
represents material that is carefully prepared in sufficient quantity to provide numerous
individual samples over an extended period of time. Samples such as these are collectively
called Standard Reference Materials, or SRMs. The assay value of an SRM is determined
by submitting multiple splits of the sample to different laboratories for analysis. After the
value of the SRM is determined within an acceptable narrow range, splits of the SRM can be
submitted for the purpose of assessing the accuracy of the assaying section of a laboratory.
Because these samples are submitted as pulps, SRMs are of no use for checking the sample
preparation section of the laboratory. Checking of the sample preparation sections can only
be done by submitting RC rig splits, core that has been quartered, coarse rejects from
samples previously submitted to the laboratory, or by the use of blanks (see Section 7.3.2).

- SRMs are used to monitor the assaying accuracy of the laboratory As general rule, an SRM should always be submitted along with any set of samples that is
sent to the laboratory, particularly if Barrick has not used the laboratory previously.
The following diagram shows the location in the Quality Control Flowchart of insertion points
for SRMs.
REVERSE CIRCULATION

DRILL SAMPLE
GENERATION

DIAMOND CORE

Split

Insert Standards
and Blanks

Primary
Assay
Subsamples

INSERT

Field
Residue

PRINCIPAL
PRINCIPAL
LAB
LAB

PRIMARY
ASSAYS

Select 5% of
Pulp Subsamples
(insert Standards
and Blanks)

Sample
Farm

STANDARDS
Select 5% of RC
Field Residues

UMPIRE
UMPIRE
LAB
LAB

Select 2 - 5% of
Half Core

CHECK ASSAYS

Resplit

Insert Standards
and Blanks

Assay
Subsamples

PRINCIPAL
PRINCIPAL
LAB
LAB

CHECK
SAMPLES

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7.3.1.1.

Properties

An SRM must have the following properties for it to be able to perform its function:

The value of the SRM must be accurately determined and the standard deviation of
the various splits that are run to determine the value must be low.

The SRM must be a homogeneous pulp - it cannot be made from ore containing
coarse gold.

The SRM must remain stable over the length of time it is used as a standard. Stability
issues include:

Sulphide particles in an SRM can oxidize with time in humid conditions.

SRMs containing particles having extreme density differences can segregate


during transport and handling.

The presence of particles with a wide range of densities should be avoided in the
preparation of SRMs. SRMs containing sulphides are discussed in more detail below.

The SRM should consist either of an ore type from the project site or, if a commercial
SRM is used, it should consist of a rock type similar to the samples being assayed.
Commercial SRMs must have a certificate that specifies all the details of the
validation process used to establish the grade of the SRM.

A sufficient number of SRMs must be available for monitoring the assaying of the important
ore types and grade ranges at each operation or project site. These include but are not
limited to:

Oxide and sulphide material types.

A variety of grade ranges in order to support future production cutoff grade decisions
and to provide a check against sample dilution required for atomic absorption (AA)
analyses of samples having grades near or beyond the upper range of detection.

Unless site- or project-specific guidelines are in place, the following describes the minimum
recommended suite of SRM samples that should be established and maintained at a Barrick
project for insertion into the sample stream on a rotating basis:

At least four SRMs based on gold grade, including:

An SRM having a grade around 1.0g/t.


An SRM having a gold grade near the breakeven/incremental cutoff grade.
An SRM with a gold grade around 10g/t.
An SRM with a gold grade around 20g/t.

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Where possible, the SRMs should consist of visually similar material, although this will
be difficult when dealing with ores having high sulphide content.

If applicable, these SRMs should have oxide and fresh (sulphide) versions.

If required, special SRMs should be prepared to address unique or problem ore types
(such as highly refractive material, or material with high-carbon content).

7.3.1.2.

Preparation of Standard Reference Materials

SRMs may be purchased from a reliable supplier, or prepared at the operation/project site
using material from the deposit to provide custom site-based standards. The advantage of a
site-based SRM is that it will have the same mineralogy as the samples sent for assay.
The preparation and assaying of a site-specific SRM generally takes a minimum of two
months. At operating mines, material can be collected in bulk from the pit or underground
workings for preparation of a SRM. On projects in the pre-development stage, SRMs
normally are developed as composites of numerous individual sample rejects from either drill
core or RC cuttings. The preparation procedure is as follows:

Select a suitable laboratory for preparing the SRM, ensuring that the laboratory has
the right equipment to prepare a large sample. SRMs can be prepared on-site
provided that the operation or project laboratory has the necessary equipment,
including:

A large pulverizer capable of handling a minimum weight of 30kg and grinding to


45m, or a continuous flow ring mill (CRM) that is designed for pulverizing large
samples for assaying or for collecting large pulverized quantities for the purpose of
making up reference materials.

Mixing apparatus capable of producing a large homogeneous pulp.

Screens (45m, 75m and 106m) for testing the grind size.

Select a material type suitable for the desired SRM. This should take into account :

The maximum sample fragment size that can be run through the crusher of the
primary laboratory.

The size and distribution of gold particles (again, samples containing coarse gold
are not acceptable for use as SRMs).

The grade of the individual sample rejects to be composited. If the sample rejects
used for the composite have a wide range of grades, the individual weights of the
samples used must be known so that the target grade of the SRM can be
achieved.

Pulp rejects that are no longer needed for QA/QC check assays may be combined
to create a composite that can be used as an SRM. This is the quickest method
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for creating an SRM, but has the disadvantage that the resulting size of the SRM
will be limited, compared to a complete SRM prepared from drill core or RC
cuttings rejects.

Collect at least 50kg (110lb) of material for the preparation of each SRM, or at least
enough to last several months, as drawn from experience over time.

Submit the entire SRM sample for preparation and assay to the laboratory chosen as
the primary laboratory for the operation or project. During preparation of the SRM, it is
essential that the grind size be monitored to ensure the homogeneity of the SRM:

Take 5 random samples of pulverized material, each weighing 100g, and submit
these to a third party (secondary) laboratory.

The secondary laboratory should pass each sample, wet, through 3 screens
(45m, 75m and 106m), calculate the percent of sample passing through each
screen, and determine if the grind is sufficient (90% passing 45m).

Fire assay five pulp splits using the finishing technique generally employed by the
laboratory. If the SRM is high-grade, a gravimetric finish must be used. The results of
these analyses establish the preliminary value of the SRM.

Determine the true or recommended grade and confirm the homogeneity of the SRM
as follows:

Take 20 100-g pulp splits of the SRM and submit five each to four third party
(secondary) laboratories. Secondary laboratories may include laboratories at
other Barrick operations.

Inform the secondary laboratories of the purpose of the test.

Each laboratory should assay the samples as one batch, employing the same
finishing technique used by the primary laboratory.

For the SRM to pass the homogeneity test, all of the results must fall within 10% of
the mean value (calculated using all results), and 90% of the results must fall
within 5% of the mean value.

If this test is not passed, check to see that the reason is not due to the results of
one laboratory being skewed relative to the other laboratories. This may indicate
contamination of the SRM in that laboratory, or some other procedural error.
Whatever the reason, known or otherwise, the laboratory in question should re-run
the five pulps. If satisfied that all laboratory procedures are correct, but the
homogeneity test is still not passed, that SRM should be discarded.

Calculate the standard deviation using all data, then discard all values more than three
standard deviations from the mean value (if any) and recalculate the standard
deviation. This value should be used to establish the Warning Lines and Action

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Lines in graphs used to evaluate sampling and assaying QC results (see Section
7.4.4).

Pack and store the completed SRM as follows:

The SRM must be packaged at the laboratory into containers no larger than 2.5kg
(5.5lb) before being transported in order to minimize the effect of gold segregation
during transport.

The containers must be airtight to prevent absorption of water from the


atmosphere (which promotes oxidation).

The SRM should be stored in these containers on site until needed.

When needed, the containers should be picked at random and not in the sequence
they were packaged at the laboratory.

Another option is to send a bulk sample from the site to a commercial supplier of SRMs for
preparation. The cost for this alternative will exceed the cost of buying a commercial SRM,
but it provides a site-based SRM while freeing site personnel for other project tasks.

7.3.1.3.

Certificates of Analysis for SRMs

The primary laboratory (including a Barrick in-house laboratory serving as a primary


laboratory) should issue a Certificate of Analysis for each SRM prepared. These certificates
provide necessary back up for the Qualified Person (see Section 1, REPORTING CODES,
and Section 3, DISCUSSION OF NI 43-101, of this reference volume) in the event of an
independent audit of mineral resources and reserves. The certificates should include:

Name of the SRM.

Date of certification.

Mean, median and standard deviation of gold grades.

Origin of material used in SRM.

Method of assaying and finish.

Homogeneity testing procedures.

Reference to special properties of the SRM (such as contains sulphides or, should
not be subjected to temperatures over 50oC, et cetera).

Signature and title of certifying officer (Laboratory Manager, Barrick Laboratory


Supervisor, et cetera.).

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7.3.1.4.

Insertion of SRMs in Sample Analysis Stream

Standard Reference Materials should be inserted into the sample submittal and analysis
stream on a regular basis. As a general rule, at least one SRM must be included in each
assay batch (a batch normally contains 25 or 50 samples). However, for simplicity of
discussion, the rate of SRM sample submittal should be set at one standard per 20
samples, as previously mentioned.
The following recommended procedure for submitting SRMs should be followed, unless a
different site- or project-specific procedure is in place:

Place approximately 250g of the SRM in a paper pulp envelope and then insert the
envelope into a numbered sample bag.

The sample number assigned to the SRM must be in sequence with the samples for
assay.

If possible, match the rock type of the SRM with the rock type of the sample lots.

Care must be taken to keep track of which SRMs are assigned to which sample
numbers.

The assays for the SRM samples will be reported in sequence along with the samples
submitted for assay on each assay report.

7.3.2.

BLANKS

Blanks are samples of material known to be void of gold mineralization. These samples are
useful for monitoring both the sample preparation and assay sections of a laboratory.
Contamination of sample preparation equipment is one of the most common sources for
assay laboratory error. Because gold is very soft and malleable compared to the gangue or
other material that commonly serves as its host, coarser gold particles can be smeared by the
much harder working surfaces of the preparation equipment (i.e., crusher jaws, pulverizer
plates, et cetera) such that it adheres to these surfaces. Unless the sample preparation
technicians routinely clean the equipment by passing barren silica sand through it between
the samples submitted for assay, any gold adhering to the working surfaces usually is
knocked loose during the preparation of the next sample.
In general it is good practice to include blanks with any samples that are sent to the
laboratory. Insertion of blanks will identify poor cleaning practices within the sample
preparation sections, but only if the blank samples are not visually different from the other
samples in the lot. As with SRMs, the purpose of running blank samples is to check the
laboratorys procedures and accuracy under normal operating conditions. If a laboratorys
sample preparation technicians are easily able to detect potential blank samples, the
possibility that the blanks will receive special treatment during preparation increases, and the
purpose of the QC procedure is defeated.
The diagram in the following section shows the location in the Quality Control Flowchart of
recommended insertion points for blanks:
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7.3.2.1.

Properties

A blank must have the following properties in order for it to be able to perform its function:

It must have a gold grade of zero.

It should be made from a rock type similar to the primary samples.

It should resemble the primary samples in sample weight, particle size and sample
type (prepared from split or sawn drill core, RC cuttings, rock chips or grab material).

- Blanks are used to monitor the sample preparation and assaying accuracy of
the laboratory -

REVERSE CIRCULATION

DRILL SAMPLE
GENERATION

DIAMONDCORE

Split

Insert Standards
and Blanks

Primary
Assay
Subsamples

INSERT

Field
Residue

PRINCIPAL
PRINCIPAL
LAB
LAB

PRIMARY
ASSAYS

Select 5%of
Pulp Subsamples
(insert Standards
and Blanks)

Sample
Farm

BLANKS
Select 5%of RC
Field Residues

UMPIRE
UMPIRE
LAB
LAB

Select 2 - 5%of
Half Core

CHECK ASSAYS

Resplit

Insert Standards
and Blanks

Assay
Subsamples

7.3.2.2.

PRINCIPAL
PRINCIPAL
LAB
LAB

CHECK
SAMPLES

Preparation of Blanks

Unlike SRMs, blanks can be easily prepared at a mine or project site. The guidelines for
choosing material for blanks are as follows:

Blanks should be as indistinguishable as possible from the primary samples. In


particular, blanks should consist of the same type of sample (whole or split core, RC
cuttings, rock chips, or grab material) as the other samples in the lot. If at all possible,
blanks should be both geologically and visually similar to the material in most of the
samples in the lot. For example, blanks should not consist of barren white quartzite if
the other samples from the deposit all consist of dark green andesites.

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Blanks should be comprised of material that is hard enough to remove any gold
contamination which remains in the sample preparation equipment from the previous
sample.

RC blanks can be composited from field rejects (residues) of barren RC holes.


Suitable field rejects can be selected from sterilization programs or from pre-collars in
known waste.

Diamond core blanks can be developed by splitting or sawing core that the geologists
believe to be barren and then having the core prepared and assayed under controlled
conditions, where great care is taken by sample preparation and analytical personnel
to ensure that no contamination takes place during analysis.

The following procedure should be followed for preparation of blanks:

At least five separate samples should be taken from the material selected as a
possible source for sample blanks.

The samples can be prepared and assayed either at a Barrick operations laboratory or
by an independent laboratory. It is best to choose a laboratory other than the one
chosen as the primary laboratory.

Inform the laboratory of the nature of the samples. This is very important, since the
principal objective is to confirm that the potential blank material contains no gold
above laboratory detection limits. Thus, the material must be prepared and assayed
under carefully controlled conditions:

Sample preparation equipment must be thoroughly cleaned prior to preparing


each sample.

New crucibles must be used to fire assay each sample.

Both an AA finish and a gravimetric finish should be used, since there is a chance
for noise in the AA finish to provide a false indication of the presence of gold. A
gravimetric finish will show gold if any is present (see Section 6, SAMPLE
PREPARATION AND ASSAYING, of this reference volume for a discussion of
assay finishing techniques).

If any of the five samples show detectable gold, the blank material must be discarded
and new material selected.

7.3.2.3.

Insertion of Blanks in the Sample Analysis Stream

As with SRMs, blanks should be inserted into the sample submittal and analysis stream on a
regular basis. As a general rule, at least one blank should be included in every other sample
batch (approximately one every 50 samples).

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The following recommended procedure for submitting blanks should be followed, unless a
different site- or project-specific procedure is in place:

Identify a mineralized interval within the numbered sample sequence to be submitted


and place the blank within or just after the mineralization. This approach is more
effective for monitoring cross-contamination than if the blank is placed amongst barren
samples.

Take enough blank material (whole core, split core, RC cuttings) to be


indistinguishable by weight from the primary samples.

Place the blank into a numbered sample bag, using a number that is in sequence
with the other samples in the lot.

As a supplement to submitting unprepared material, it is also good practice to


periodically (once every 200 samples) submit a blank assay pulp split for analysis.
This serves as a check against the assay section of the laboratory, and is sometimes
useful in detection of contaminated furnace linings or failure on the part of the
laboratory to account for inquarts when calculating precious metal grades.

In addition to the blanks submitted under a Barrick QC program, most laboratories insert a
pulp blank with each assay batch as part of internal quality control programs. Check to see
that these data are available and review the results regularly.
The assays for the blank samples will be reported in sequence along with the samples
submitted for assay on each assay report.

7.3.3.

GRIND CHECKS

Grind checks are tests done on the products of crushing and pulverizing to determine if the
sample preparation procedures at the laboratory are adequate for producing assay pulp splits
of uniform particle size. Grind specifications are set as part of the Sample Preparation
Protocol that is developed at the beginning of a project (see Section 6, SAMPLE
PREPARATION AND ASSAYING, of this reference volume), and the laboratory must be
regularly checked for compliance with these specifications.

The laboratory is required to achieve a specified grind size at


each sample preparation stage

The areas where grind checks should be performed are indicated on the Quality Control
Flowchart below.

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REVERSE CIRCULATION

DRILL SAMPLE
GENERATION

DIAMOND CORE

Split

Insert Standards
and Blanks

Primary
Assay
Subsamples

GRIND

Field
Residue

PRINCIPAL
PRINCIPAL
LAB
LAB

PRIMARY
ASSAYS

Select 5% of
Pulp Subsamples
(insert Standards
and Blanks)

Sample
Farm

CHECKS
Select 5% of RC
Field Residues

UMPIRE
UMPIRE
LAB
LAB

Select 2 - 5% of
Half Core

CHECK ASSAYS

Resplit

Insert Standards
and Blanks

Assay
Subsamples

7.3.3.1

PRINCIPAL
PRINCIPAL
LAB
LAB

CHECK
SAMPLES

Grind Check Procedures

Usually, grind checks are made at two points in the sample preparation sequence:

After coarse crushing.


After pulverizing.

The most important point at which to regularly perform grind checks is after pulverizing, since
this is the final stage of size reduction of a sample prior to splitting for assay. Pulps that have
poor homogeneity as a function of inadequate pulverizing are much more likely to produce
erratic assay results. Grind checks made after coarse crushing are useful for determining any
adjustments required to crushing equipment that could facilitate pulverizing and improve
pulverizer performance. Also, if the size product of the crushing step does not meet sample
preparation protocols, the splitting of the coarse reject material may be adversely affected.
Unless a mine or site-specific grind check procedure is in place, grind checks should follow
this recommended sequence of steps:

Selection of a screen size - The appropriate screen size for a particular ore type is the
one that will pass a ground product that, when continuously re-assayed, will achieve
reproducible assay results. The convention is that the screen must pass 90% of the
ground product. This is referred to as P90. Common screen sizes used for pulps are
75m and 106m.

Screening Method - The laboratory should carry out grind checks using the methods
described below:

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Edition 1 November, 2002

Pulps

Weigh out 20g of dry pulp residue.


Wet sieve the pulp through the screen.
Dry the oversize.
Weigh the oversize (Wo).
Calculate the weight of the undersize (20g Wo).
Calculate the percentage passing the screen: % = 100(20g Wo) / 20g

Wet Sieving of Pulp


Coarse Rejects

Use the coarse reject (not the coarse split selected for assaying).
Split out approximately 100g of dry coarse reject and weigh accurately.
Dry sieve the coarse reject through the screen.
Weigh the oversize (Wo).
Calculate the weight of the undersize (100g Wo).
Calculate the percentage passing the screen: % = 100(100g Wo) / 100g

7.3.3.2

Frequency of Grind Checking

The laboratory should conduct grind checks at the following rate:

Primary laboratory - One in every 100 samples.

Secondary laboratory - One in every five check assay samples (this equates to one in
every 100 primary samples, as each check assay sample represents 5% of the total).

In addition to these prescribed grind checks, samples for random grind checks should be
collected during unannounced laboratory audits, as described in Section 6, SAMPLE
PREPARATION AND ASSAYING, of this reference volume.

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The results of both coarse crush and pulp grind checks should be reported by the laboratory
concurrently with each batch of assay results.

7.3.4.

CHECK ASSAYING

Check assaying is the process of submitting a selected set of the same pulps assayed by the
primary laboratory to a secondary laboratory for assaying. This procedure checks the
accuracy of the assay section of the primary laboratory and determines if there is an assay
bias present in that laboratorys analytical results. It should be noted, however, that check
assaying does not provide an assessment of the primary laboratorys sample preparation
process.
Selection of the secondary laboratory is important. The secondary laboratorys work must be
of demonstrated exceptional high quality, and the laboratory must use exactly the same
assaying and finishing techniques as the primary laboratory.

- Check assaying is performed at a secondary laboratory in order to check for


the presence of assay bias at the primary laboratory At least one check assay should be submitted to the secondary laboratory from every batch
of primary samples sent to the primary laboratory from the mine or project site. Spot grind
checks should also be performed on pulps that are submitted for check assaying.
The following diagram shows the location in the Quality Control Flowchart where check
assaying is performed.
REVERSE CIRCULATION

DRILL SAMPLE
GENERATION

DIAMOND CORE

Split

Insert Standards
and Blanks

Primary
Assay
Subsamples

CHECK

Field
Residue

PRINCIPAL
PRINCIPAL
LAB
LAB

PRIMARY
ASSAYS

Select 5% of
Pulp Subsamples
(insert Standards
and Blanks)

ASSAYING

Sample
Farm

Select 5% of RC
Field Residues

UMPIRE
UMPIRE
LAB
LAB

Select 2 - 5% of
Half Core

CHECK ASSAYS

Resplit

Insert Standards
and Blanks

Assay
Subsamples

PRINCIPAL
PRINCIPAL
LAB
LAB

CHECK
SAMPLES

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Edition 1 November, 2002

7.3.4.1.

Check Assaying Procedures

In the absence of mine or site-specific check assaying procedures, the following suggested
procedures should be observed when submitting check assays to the secondary laboratory:

At least 5% (one in 20) of the original sample pulps should be sent for check assaying.

Using the original assay results from the primary laboratory as a guide, the geologist
should select the pulps to be submitted for check assay. The chosen suite of pulps
should be representative of the ore types present in the samples, and should include
high grade, low grade, and waste material. The waste samples should be chosen
from mineralized zones, using the geological logging as a guide.

Select 20% of the check assay pulps (this equates to one in every 100 primary
samples) for grind checks, including some pulps for which the primary laboratory has
already performed grind checks (in order to have some direct comparisons). The
secondary laboratory must use exactly the same screen sizes and screening methods
as used by the primary laboratory.

The original pulp splits must be submitted, not a duplicate split taken from pulp rejects.

The pulps should be submitted to the secondary laboratory in one batch and should
be assayed together.

At least one standard sample (SRM) pulp should be included with each lot of check
assay pulps.

Check assaying should be performed frequently, so that any problems with assay bias at the
primary laboratory can be recognized early on in the project. The results of the check
assaying should be promptly recorded and analyzed after results are received. Entry of
check assay data into electronic databases should conform to the procedures described in
Section 5, SAMPLE PREPARATION AND ASSAYING.

7.3.5.

CHECK SAMPLING

Check sampling consists of collecting a duplicate sample from material remaining from the
original sample which has not passed through the sample preparation process. For example,
check samples from diamond drill core should be obtained by sawing or splitting the half core
that remains in storage for a given sample interval. For RC drilling, check samples are
collected from the sample splits taken at the rig during drilling. For other methods of sampling
where a portion of the original sample no longer remains (such as blast hole drill cuttings,
ditch witch samples, underground face samples), where diamond drill core was sent whole for
assay or if all remaining core splits have been used, check samples can only be obtained
from coarse rejects remaining from the original sample.
Check samples must be taken from the original samples using exactly the same sampling and
splitting techniques used to collect the primary assay samples. The check samples then are
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Edition 1 November, 2002

submitted to the primary laboratory for full sample preparation and assaying. The primary
laboratory should use exactly the same sample preparation and assaying techniques that
were used on the primary samples.
The results of check sampling typically will display more erratic repeatability because of the
compounding effect of errors from sampling, sample preparation and assaying.

- Check sampling is performed to determine whether the sampling procedure is


producing assay pulps that are representative of the original samples - Check sample results can reveal fundamental errors in sampling protocol The following diagram shows the location in the Quality Control Flowchart where check
sampling is performed.
REVERSE CIRCULATION

DRILL SAMPLE
GENERATION

DIAMOND CORE

Split

Insert Standards
and Blanks

Primary
Assay
Subsamples

Field
Residue

PRINCIPAL
PRINCIPAL
LAB
LAB

PRIMARY
ASSAYS

Select 5% of
Pulp Subsamples
(insert Standards
and Blanks)

CHECK

Sample
Farm

Select 5% of RC
Field Residues

SAMPLING

UMPIRE
UMPIRE
LAB
LAB

Select 2 - 5% of
Half Core

CHECK ASSAYS

Resplit

Insert Standards
and Blanks

Assay
Subsamples

7.3.5.1.

PRINCIPAL
PRINCIPAL
LAB
LAB

CHECK
SAMPLES

Check Sampling Procedures

The following guidelines should be used when submitting check samples to the primary
laboratory:

The minimum industry-accepted percentages for the number of check samples


required are:

RC cuttings - 5% of the original samples (1 in 20).


Diamond core - 2% of the original samples (1 in 50).

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Ditch witch, blast holes, underground face samples - 5% of the original samples
(1 in 20).

Whenever possible, the check samples are collected only from the original samples.

For RC cuttings and diamond core, the same sample intervals submitted for check
assaying should be selected for check sampling. Similarly, for ditch witch, blasthole,
underground face samples, and core hole intervals where whole core was sent for
assay, the coarse rejects for the same sample intervals submitted for check assays
should be submitted for check sampling, unless a duplicate sample was collected and
saved at the time of collection of the original sample.

Collection of the check samples is as follows:

Diamond core - The remaining half core is split or sawn into quarter core.

RC cuttings - A split is taken from the rig split (field residue).

Ditch, witch, blast holes, underground face samples - A second duplicate sample
is taken from the reject pile by the trench, blast hole collar, or is cut at the face.

Use a sample numbering scheme different than the one used for the primary samples.

Insert standards after every 20th sample and blanks at the rate of 1 in 50 samples.

Conduct grind checks on one in 100 check samples.

Submit the check samples to the primary laboratory as one batch or lot.

As with check assaying, check sampling should be performed in frequent campaigns, so that
any problems with sampling protocol can be recognized early on in the project, or as soon as
they arise. The results of the check sampling should be promptly recorded and analyzed after
receipt from the laboratory. Entry of check sample data into electronic databases should
conform to the procedures described in Section 5, SAMPLE PREPARATION AND
ASSAYING. HERE

7.4. ASSESSMENT AND INTERPRETATION OF QC DATA


- Remember: keep the data evaluation simple it is the interpretation and
follow up which are important!
This section outlines the standard methods of assessing and interpreting QC data. The
assessment of QC data involves two steps:

Graphing of the assay and grind check data.


Interpretation of the results (Section 7.4.5).

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Graphs provide quick visual indications of sampling errors, assay bias, possible switching of
sample tags in the laboratory, and other errors generated by the sampling, sample
preparation and assaying process. The graphed data then are interpreted to determine the
magnitude of any errors, and the following items are checked:

Are the errors within acceptable limits?

Do the checks show that some of the data are acceptable and some are outside
acceptable limits?

Which batches of primary assays need to be re-assayed?

The geologist must then proceed to resolve any problems that apparently are affecting the
primary assays.

- Primary assay results are either accepted or rejected - They must NEVER be adjusted based on results of check assays It is important that the QC data are analyzed on a regular basis before a point of no return is
reached where assays in the database are being used for geological interpretations and
resource modeling and grade estimation.

7.4.1.

MEASUREMENT ERRORS

The errors that QC data can reveal, and which are of the most interest, are measurement
errors, because these can be remedied if identified in time. Measurement errors are
generated during the collection of assay data and can be divided into:

Sampling errors.
Assaying errors.

Within these two categories, measurement errors occur in two ways:

Random errors.
Systematic errors.

Random errors occur in every analysis, even when using the same sampling and assaying
procedures. The random error can be recognized if, in spite of using the same procedures,
the assays vary from each other by small irregular differences. As a result, the true, exact
assay of the sample is usually not known, and lies somewhere within the range of variation.
Systematic errors always affect measurements in the same way, and are usually an indication
of sampling or assaying bias, either positive or negative. These errors warrant immediate
attention, since the final assays can directly impact a resource estimate or the determination
of ore and waste classifications.
The size of the measurement errors can be determined by using accuracy and precision
functions.
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Edition 1 November, 2002

7.4.2.

ACCURACY AND PRECISION

Accuracy is a measure of the closeness of the assay result to the true grade of the primary
sample. Key aspects in the measurement of accuracy in assaying include:

The assay split must be representative of the sample.

The assay result must be close to the true grade of the assay split.

Accuracy is evaluated by measures of central tendency such as the mean and


median.

A biased result occurs if a systematic error is induced during the analysis. For
example, the primary laboratory may have a high assay bias in one grade range
compared with the secondary laboratory because one of its internal standards used
for calibrating the AA machine is too high.

Laboratory accuracy can only be verified by using standard samples of known grade.
Check assaying at the secondary laboratory will not determine which laboratory is the
more accurate.

Precision is a measure of the reproducibility of the assay results. Important aspects in the
measurement of assaying precision include:

Good precision is achieved if random errors are minimized. Random errors can occur
in field sampling, sample preparation and assaying.

Good precision may still be achieved even if a systematic error is present. For
example, the primary laboratory will produce repeatable (precise) results when
assaying a standard sample, even though the assays do not match the standard
value.

Laboratory precision can be determined by analyzing both check assay and check
sample data.

Precision is determined by considering standard deviation, variance and the


coefficient of variation.

Accuracy in assaying is a measure of the ability to determine the true grade of the primary
sample. Precision in assaying refers to the ability to consistently repeat the assay results for
a sample within required limits. Accuracy and precision are the means by which the quality of
a laboratory is judged. The following diagram illustrates the concepts:

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Edition 1 November, 2002

Good precision
Good accuracy

Good precision
Poor accuracy

Poor precision
Good accuracy

Poor precision
Poor accuracy

The variance of the results is a direct consequence of the many errors that can be introduced
during the sampling and assaying stages.
In summary, the QC data can be used to evaluate:

Laboratory Assay Accuracy, as determined from:

Laboratory Assay Bias; as determined from:

Check assays (comparing results of primary laboratory relative to the secondary


laboratory).

Sampling precision; as determined from:

7.4.3.

Check assays from the secondary laboratory.

Relative Assay Precision; as determined from:

SRMs
Blanks

Check sampling.

PRESENTATION OF QC DATA

The QC data should be assessed and presented in two stages. The first, termed Immediate
Assessment and Action, takes the data as soon as they are available, graphs and assesses
the results, and formulates the action required to correct any observed irregularities. The
second, Full Documentation, compiles all analyses and actions taken into a single report
that becomes part of the backup for the Statement of Mineral Reserves and Resources.

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7.4.3.1.

Immediate Assessment and Action

Upon receipt of the QC data, the geologist should enter the data into the site database and
proceed with graphing, interpretation and follow-up action. A summary of the assessment
can be recorded on the recommended form (Data Assessment Summary Sheet), an
example of which is shown below, if no operation or site-specific procedures or forms are in
place.
All of the QC data can be summarized using this form, including short term performance of an
SRM, long term performance of an SRM showing laboratory drift, grind checks and check
assaying. This one-page summary is a simple and useful record of the action taken, and may
be circulated internally.

7.4.3.2.

Full Documentation

A full QC assessment should be presented as part of the report serving as a backup for the
Statement of Mineral Reserves and Resources. The assessment report should include:

An account of all short term aberrations.


Analysis of longer term trends.
Details of all corrective actions taken.
An Appendix that includes all raw data.
QC DATA ASSESSMENT SUMMARY SHEET
SITE NAME
DATE PRMARY
LABORATORY
DEPOSIT
GEOLOGIST SECONDARY
LABORATORY
D
U
P
L
I
C
A
T
E
S

GRAPH

ORIGINALS

SAMPLE
DETAILS:
INTERPRETATION:

SUMMARY STATISTICS
No Samples:
Mean:
Std Dev:
Max:
Min:

ACTION TAKEN:

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7.4.4.

GRAPHS

Many types of graphing techniques can be used to plot QC data. Some of these are quite
complex and beyond the scope of this reference volume. The following three types of simple
graphs have been found to be adequate for most operational and project requirements.

7.4.4.1.

Line Graphs

A simple line graph should be used for plotting data for SRMs, blanks and grind checks.
Line graphs for these data should be set up in the following manner:
For SRMs

Assays are plotted on the y-axis.

Sample numbers or time are plotted on the x-axis.

A central line is plotted as the recommended value for the assays, this being the
mean value of the SRM.

Warning lines and action lines are plotted either side of the recommended value.
The warning lines are equal to two standard deviations of replicate assays performed
during the certification process, while the action lines are equal to three standard
deviations.

When using commercial SRMs, the mean and standard deviation of an SRM should
be obtained from the supplier of the SRM.
g/t Au
Action
Required

Action Line
Warning Line

Recommended Value

Warning Line
Action Line

3
Action
Required

Sample Number / Time

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Edition 1 November, 2002

For blanks

The warning line is set at 0.1g/t Au.


The action line is set at 0.2g/t Au.
g/t Au

Action
Required
0.2g/t

Action Line

0.1g/t

Warning Line

Sample Number/Time

For grind checks

The recommended value is set at 90% of the weight of each sample passing through
screen (P90).

Action is required if all of the samples do not equal or exceed this recommended
value.
%
Passing
75m

P100
P90
P80

Recommended Value
Action
Required

Sample Number/Time

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7.4.4.2.

Scatter Plots

A scatter plot graph should be used for plotting all assay pairs, such as check assays and
check samples. These graphs are very useful for showing assay bias between laboratories.
Scatter plots should not be used for monitoring standards.
Scatter plots should be set up in the following manner:
Assay As (original assays) are plotted on the x-axis.
Assay Bs (check assays) are plotted on the y-axis.
A reference line is plotted for x = y, reflecting exact matches between the two assays.
Warning lines are plotted on either side of the reference line. The warning lines for
check assays should be set at 10%. The warning lines for check samples should be
set at 20%.
The warning lines become meaningless for assays more than 10 times the detection
limit of the assaying technique.

Assay B
g/t Au
Warning Line
(+10%) or (+20%)

Action may
be required

Reference Line (A=B)


Warning Line
(-10%) or (-20%)

10x detection

Action may
be required

Assay A g/t Au
If the assay data cover a wide range, it is best to present scatter plots over several grade
intervals so that the resolution of the data in the lower grade ranges are readable on the plots.
For a normal data set (i.e. gold grades ranging from less than detection to 100 g/t), a typical
range breakdown might be:
0 to 1g/t
1 to 10g/t
10 to +100g/t

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7.4.4.3

Thompson-Howarth Graphs

An alternative method for presenting and assessing the differences between the individual
assays in a data set of assay pairs is the Thompson-Howarth graph. These graphs are very
useful for determining the precision of the paired assays and setting pass/fail criteria.
Thompson-Howarth graphs should be set up in the following manner:

The absolute values of the difference of the assay pairs are plotted on the y-axis.

The means of the assay pairs are plotted on the x-axis.

A value of y=0 (Assay A Assay B = 0) represents the ideal situation where no


bias exists between the primary and secondary laboratories.

The difference of the assay pair is always positive, (i.e. the absolute difference).

A warning line is plotted to show which assay pairs have an unacceptable error. The
warning line for check assays should be set at +10%. The warning line for check
samples should be set at +20%t.

The warning lines become meaningless when the mean of an assay pair is less than
10 times the detection limit of the assaying technique.
Absolute
Assay
Difference
A-B

Action may
be required
Warning Line
+10% or + 20%
10x detection

Mean ((A+B)/2) g/t Au


If the assay data cover a wide range, it is best to present Thompson-Howarth graphs over
several grade intervals (on the x-axis) so that the resolution of the data in the lower grade
ranges is readable.

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7.4.4.4

Other Graphical Methods

In addition to line graphs, scatter plots and Thompson-Howarth graphs, there are several
other ways to check the precision of paired data. These include the Dot Plot method, the
Confidence Interval method, the ANOVA method, the t-Test, and the F-test method. Easy-touse computer software is available for these methods of checking paired data.

7.4.5.

DATA INTERPRETATION

After the assay data have been displayed in the appropriate graphs, the data must be
interpreted to determine what, if any, corrective course of action is required in order to
address sampling errors, laboratory bias or assay accuracy issues.
The QC data should be interpreted in the following order, particularly when attempting to track
down an apparent error in the system:

Standard Reference Materials (SRMs)


Blanks
Grind checks
Check assays
Check samples

This order is very important. The failure of a laboratory to match mean SRM values within
acceptable limits is a direct indication of a potential problem in the analytical section of the
laboratory. Similarly, unacceptable assay results for blank samples strongly suggest possible
laboratory contamination. Also, a period of poor grinding performance may relate directly to
poor precision in check assay results.
It is important to remember that a systematic approach to addressing apparent problems in
sampling or in the laboratory is absolutely essential. Change only one procedure at a time in
order to avoid further skewing of results. As with mechanical repairs to equipment:

- Determine what is broken before starting to make repairs! Each stage of interpretation of QC data should conclude with a documented statement of
action taken. For example:

The conclusion may simply be Check results are satisfactory, no action required;
or

The sampling procedure will be revised after the results of testwork are received in
early September

The following sections discuss examples of interpretation of QC data.

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7.4.5.1.

SRM Data Interpretation

As described in Section 7.4.4.1, the results of the SRM analyses are compared against the
recommended value (mean) of the SRM by plotting the data for each standard on a separate
line graph. Once plotted, the analysis must:

Single out the results outside the action lines. All results beyond the action line are
unacceptable.

Determine whether the error is due to mislabeling of an SRM or due to laboratory


analysis. If no SRM mislabeling has occurred, the primary samples associated with
these SRMs must be re-assayed.

- This is a critical stage, where the primary assays are accepted or rejected
based on results of the SRMs

Promptly bring to the laboratorys attention any results falling between a warning line
and an action line as a potential problem.

Examine the long-term history of the SRM assay data, and check for assay bias over
time.

The following line graph example shows assay results obtained for an SRM having a value of
2.00g/t Au over a period of 1.5 months. The data can be divided into groups that illustrate
trends over time. The significance of these groups or trends is discussed below:
STANDARD No ... at ... LAB
GOLD - mean value 2.00g/t
- standard deviation 0.10g/t
3.00
2.80
2.60
2.40

Action Line
Warning Line

2.20
Recommended Value

2.00
1.80

Warning Line
Action Line

1.60
1.40
1.20
mean = 2.00g/t

mean = 2.33g/t

mean = 2.22g/t

mean = 2.00g/t

mean = 2.09g/t

1.00
1-Jun

11-Jun

21-Jun

1-Jul

11-Jul

DATE

The data for the above graph were compiled in an Excel spreadsheet that appears in
Appendix 7-1.
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Group 1 (1st June to 10th June)

These are normal results, displaying acceptable precision and accuracy.


The mean is the same as the recommended value for the SRM.

Action Required: The geologist will have confidence in the primary assays produced
during this period. No action is required.
Group 2 (11th June to 20th June)

These data show a trend of increasing value, with four assays above the warning line
and one assay above the action line.

The laboratory should be informed immediately of the results and asked to check on
procedures in place before overall results become unacceptable.

Action Required: The batch of primary samples that included the one standard above the
action line may need to be re-assayed, depending on the laboratorys findings.
Group 3 (21st June to 30th June)

These results display good precision but unacceptable accuracy, with seven assays
above the action line. This indicates a high bias on the part of the laboratory with
respect to the SRM analyses for this period, which likely translates to a high bias in
the primary sample assays also.

The laboratory must be informed immediately and steps taken to determine and
correct the source of the bias.

Action Required: The primary sample lots that include the seven SRMs above the action
line must be re-assayed. Depending on the results of the laboratorys investigation, the
primary sample lots that include the three SRMs with results falling between the warning
line and the action line also may require re-assaying.
Group 4 (1st July to 10th July)

The data indicate that the laboratory appears to have corrected the assay bias
problem, with only one assay is above the warning line. The results are now accurate
(mean=2.00g/t), but precision is worse.

Action Required: The geologist should continue to closely monitor the laboratory.
Group 5 (11th July to 20th July)

All assays except one show good precision and good accuracy. However, one assay
is beyond the action line and warrants investigation. Because the result for this SRM
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Edition 1 November, 2002

is well above the action line, laboratory bias may not be the cause.
reasons include:

Alternative

Another SRM could have been incorrectly labeled and submitted to the laboratory.
Sample swapping may have occurred on site or at the laboratory.

Action Required: The batch of primary samples that included the single SRM above the
action line may need to be re-assayed, if no other evidence for a labeling or swapping
error can be found.
To track laboratory performance over time, a moving average line can be added to the line
graph as shown below.
STANDARD No ... at ... LAB
GOLD - mean value 2.00g/t
- standard deviation 0.10g/t
3.00
2.80

Au g/t
2.60

9 point moving
average

2.40
2.20
2.00
1.80
1.60
1.40
1.20
1.00
1-Jun

11-Jun

21-Jun

1-Jul

11-Jul

DATE

The deviation of the moving average line from the mean or suggested value line shown in the
graph is sometimes referred to as laboratory drift.

7.4.5.2.

Blank Data Interpretation

As with SRM samples, the results of blank sample assays are tracked by plotting the data on
a line graph. Once plotted, the analysis must:

Single out the results outside the action lines. All results beyond the action line are
unacceptable.

Determine whether the error is due to mislabeling of a blank or apparent laboratory


analysis. If no mislabeling has occurred, the primary samples associated with these
blanks must be re-assayed.

- This is also a critical stage, where the primary assays are accepted or
rejected based on results of the standards 7-31
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Edition 1 November, 2002

Promptly bring to the laboratorys attention any results falling between a warning line
and an action line as a potential problem.

The following line graph example shows assay results obtained from the routine assaying of
blanks over a one-month period. The data can be divided into groups that illustrate trends
over time. Note that the scale on the y-axis is logarithmic in order to provide better visual
resolution of the data in the lowest grade, where most blank assay data will fall:
BLANK No ... at ... LAB
10.00

Au g/t
(log
scale)

2.34

1.00
0.83

0.36

Action Line (0.2 g/t)


0.13

Warning Line (0.1g/t)


0.10

0.01
31-May

10-Jun

20-Jun

30-Jun

DATE

Group 1 (1st June to 10th June)

All blanks except one show good precision and good accuracy. One blank is
significantly high (2.34g/t Au) and warrants investigation. Because all other blanks
assayed during this period returned acceptable assays, the problem may be due
to:

An SRM incorrectly labeled as a blank.


Sample swapping on site or at the laboratory.
A single contamination occurrence.

Action Required: Overall laboratory performance for the period appears to be good.
However, if no evidence of sample swapping or mislabeling can be found, pulps from
the lot of primary samples that included the high assay blank (2.34g/t Au) should be
re-assayed, including the pulp for the single anomalous blank. If the results are
similar, then new assay pulps should be prepared for the entire lot using coarse
rejects (residues) and these pulps assayed.

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Edition 1 November, 2002

Group 2 (11th June to 20th June)

One blank is above the warning line and two blanks are above the action line.
Except for these three assays, all other blank results are at or below detection
limit, indicating:

Sample swapping/mislabeling is probably not the source of the high assays


(although this should be checked), since the number of anomalous assays
comprises approximately 30% of the total blanks assayed for the period.

Contamination is likely to have occurred at the sample preparation stage. This


can be verified by determining if high-grade primary samples were prepared
immediately before the anomalous blanks.

Because the other blank data are all at or below detection limit, the cause of the
problem may be a particular laboratory technician who is not properly trained or
who is intentionally cutting corners. The laboratory should be informed of the
results immediately and asked to investigate.

Action Required: The pulps for the primary sample lots that which include the two
blanks above the action line will need to be re-assayed, along with the pulps from the
anomalous blanks. If the results are similar, then new assay pulps should be
prepared for the entire lot using coarse rejects (residues) and these pulps assayed. If
the laboratory determines that the source of the problem is contamination due to
laboratory technician error, then other sample lots prepared by the same operator may
need to be re-assayed.
Group 3 (21st June to 30th June)

All blanks are above the warning line and four blanks are above the action line,
indicating good laboratory precision but unacceptable accuracy. This high bias
may indicate:

The laboratory may have a calibration problem.

The laboratory may have a chronic contamination problem, although the good
precision displayed by the data suggests that the problem is not likely to be in
the sample preparation area.

A new blank, inadvertently containing gold, may have been introduced.

Check the standards that were submitted during the same period for evidence of a
similar increase in grade.
Action Required: Regardless of the cause of the problem, the laboratory should be
informed of the results immediately, and all of the pulps for the primary sample lots
(including the pulps for the blanks) must be re-assayed. If the results are similar, then

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Edition 1 November, 2002

new assay pulps should be prepared for the entire lot using coarse rejects (residues)
and these pulps assayed.

7.4.5.3.

Grind Check Data Interpretation

Poor grinding usually results in a non-homogeneous ground product. With pulps, this shows
up as poor repeatability of assays on pulp duplicates.
As with the data on SRMs and blank samples, the results of grind tests are tracked by
plotting the data on a line graph. Separate graphs should be produced for grind checks on
pulps and checks of coarse crush material. Once plotted, the analysis and action steps must
include:

Compilation of the results at less than the recommended P90 value for the screen size
used for the grind checks. The results are unacceptable if they fall below P90. In
order for no action to be necessary, the grind for all samples must be better than P90
on the line graph. Note that to achieve the P90 designation, 90% of the pulp must
pass through the screen. The term nominal should never be accepted as defining
the pass percentage, as it means in name only.

Diligent action - even an occasional poor grind result cannot be ignored. Follow up
whenever a grind test fails to pass the P90 limit and inform the laboratory immediately
of the results.

- One grind check per 100 samples means each laboratory operator is only
being checked about TWICE per shift

With the laboratorys assistance, determine the possible reasons for the poor grind
results.

The possible reasons for poor grind results include:

An abundance of siliceous material in the sample, which is not unusual for ore-grade
material, particularly in certain types of gold deposits. Care should be taken to ensure
that both ore and waste material are represented in the grind checks, as the grinding
index of the two material types can vary significantly.

Overloading of the pulverizer(s). Note that increasing the grind time cannot remedy
overloading. Either a smaller sample must be submitted or, if this is not possible, the
laboratory should grind each sample in two passes and then correctly recombine the
pulp product.

Solutions to poor grinding vary depending on the reason for the problem:

If siliceous material is believed to be the cause, the laboratory can either increase the
grind time on all samples, or the Barrick geologist can flag the samples thought to

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Section 7 QA/QC for Assaying and Sampling


Edition 1 November, 2002

contain high levels of siliceous material so that only these samples are given a longer
grind time.

If a satisfactory explanation for the poor grinds cannot be found, the primary samples
associated with these grind checks must be reground and re-assayed. Prior to
regrinding, the assay pulp split should be remixed with the pulp reject and a new
assay pulp split produced.

Should the grind checks be consistently good but pulp duplicates continue to demonstrate
poor repeatability (i.e. the pulp is not homogeneous), then it may be that the screen size used
for the grind checks is too large.
Finally, it helps to maintain a line graph that displays the grind test results over time. These
data are useful for analyzing trends in grinding check results, which can sometimes be
correlated to QC issues revealed by other data.

7.4.5.4.

Check Assay Data Interpretation

As described in Section 7.3.4, check assays are performed by a secondary laboratory on the
same pulps used for assaying the primary samples at the primary laboratory. The results are
compared against the assays generated by the primary laboratory. Interpretation of check
assay results should be completed as soon as the results have been received from the
secondary laboratory.
Both a scatter plot and a Thompson-Howarth graph should be used to analyze check assay
data, since:

The scatter plot will reveal any assay bias between the two laboratories.

The Thompson-Howarth graph will provide an indication of the relative precision of


the laboratories.

However, neither a scatter plot nor a Thompson-Howarth graph can determine which
laboratory is more accurate. Accuracy can only be determined by assaying and analyzing
standard samples.
The examples on the following pages illustrate some common assaying errors that check
assaying can help identify:

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Section 7 QA/QC for Assaying and Sampling


Edition 1 November, 2002

Example 1
SCATTER PLOT

THOMPSON-HOWARTH GRAPH

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

25.00

2.50

+10%
-10%

20.00

15.00

1.50

10.00

1.00

5.00

0.50

0.00

0.00
0.00

Warning Line
+/-10%
2.00

5.00

10.00
15.00
ASSAY A Au g/t

20.00

25.00

0.00

5.00

10.00

15.00

20.00

25.00

MEAN Au g/t

Both graphs indicate acceptable results. The scatter plot shows no laboratory bias,
and the Thompson-Howarth graph shows that the precision is acceptable, except for
two duplicates which fall above the +10% warning line.

Action Required: Investigate the two samples that fall above the +10% warning line by
looking for common characteristics such as close proximity in the deposit, similar geological
features (i.e., sulphide content, silicification, et cetera). Also, the grind may be poorer on
these two samples because of strong silicification or sample preparation error.
Example 2
SCATTER PLOT

THOMPSON-HOWARTH GRAPH

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

25.00

4.50

+10%

4.00
-10%

20.00

3.50
3.00

15.00

2.50
Warning Line
+/-10%

2.00

10.00

1.50
1.00

5.00

0.50
0.00
0.00

0.00
5.00

10.00
15.00
ASSAY A Au g/t

20.00

25.00

0.00

5.00

10.00
15.00
MEAN Au g/t

20.00

25.00

The scatter plot shows no evidence of bias (the data are scattered evenly about the
reference line).

The Thompson-Howarth graph indicates that the relative precision of the laboratories
is poor in all grade ranges.

Action Required: The poor precision in all grade ranges is indicative of pulps that are not
homogeneous. To determine if this is the case, examine the two laboratories in-house
duplicate checks and review the grind checks. If the grind checks appear to be
satisfactory, it may indicate that the screen used to check the grind is too coarse, and the
primary laboratory should change to a finer screen size. If the problem is not identified
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Section 7 QA/QC for Assaying and Sampling


Edition 1 November, 2002

and corrected, all primary assays run by the laboratory during in this period likely will
have poor precision.
Example 3
SCATTER PLOT

THOMPSON-HOWARTH GRAPH

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

25.00

4.50

+10%
-10%

20.00

4.00
3.50
3.00

15.00

Warning Line
+/-10%

2.50
2.00

10.00

1.50
1.00

5.00

0.50
0.00

0.00
0.00

5.00

10.00
15.00
ASSAY A Au g/t

20.00

25.00

0.00

5.00

10.00

15.00

20.00

25.00

MEAN Au g/t

The scatter plot shows that the original assays (Assay A) have a low assay bias.

The Thompson-Howarth graph indicates that the relative precision between the
laboratories is generally good except in the 7g/t to 14g/t grade range, where four pairs
are above the warning line.

Action Required: The borderline relative precision in the 7g/t to 14g/t range may be due to
an incorrect AA calibration standard in the primary laboratory. The results of the standard
sample submittals for the lots that contain the original assays in the erratic pairs should be
examined to see if the same low bias exists in those data. If a faulty standard is found, all
primary samples that fall in the grade range affected by the calibration standard should be
re-assayed by the primary laboratory.
Example 4
SCATTER PLOT

THOMPSON-HOWARTH GRAPH

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

80.00

+10%

15.00

-10%

60.00
10.00
Warning Line
+/-10%

40.00
5.00

20.00

0.00

0.00
0.00

20.00

40.00
ASSAY A Au g/t

60.00

80.00

0.00

10.00

20.00

30.00

40.00
50.00
MEAN Au g/t

60.00

70.00

80.00

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Section 7 QA/QC for Assaying and Sampling


Edition 1 November, 2002

The scatter plot indicates no assay bias between the laboratories.

The Thompson-Howarth graph shows that the relative precision between the
laboratories is good in the 0 20g/t grade range but is poor for grades above 20g/t.

Action Required: Look for a procedural problem in the laboratories. If the secondary
laboratory is using a gravimetric finish (which is preferable in the higher grade ranges) and
the primary laboratory is not, the procedural problem may be in the primary laboratory. If one
or both of the laboratories is using an AA finish, an inexperienced operator may be
introducing a number of errors, including dilution (solutions containing gold over 20g/t are
outside the calibration range of the AA machine and would have to be diluted before
analysis). If the problem is not corrected, all of the primary assays above 20g/t Au performed
during this period are likely to have poor precision, and all must be re-assayed by the primary
laboratory.
Example 5
SCATTER PLOT

THOMPSON-HOWARTH GRAPH

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

CHECK ASSAYS at LAB and LAB


ALL GRADE RANGES

25.00

8.00

+10%
-10%

20.00

7.00
6.00
5.00

15.00

4.00
10.00

3.00

Warning Line
+/-10%

2.00

5.00

1.00
0.00
0.00

0.00
5.00

10.00
15.00
ASSAY A Au g/t

20.00

25.00

0.00

5.00

10.00
15.00
MEAN Au g/t

20.00

The scatter plot shows no evidence of assay bias.

Both graphs indicate that the precision is good except for three duplicate pairs.

25.00

Action Required: Upon investigation it was found that two of the errors were introduced
by sample swapping, where two samples were interchanged (they have a similar assay
difference on the Thompson-Howarth graph), and one sample was selected from outside
the batch and mislabeled. These issues must be discussed with both laboratories
immediately, as such errors are commonly caused by:

Sloppy pulp retrieval at the primary laboratory.


Errors in transferring the pulps between the laboratories.
Improper pulp envelope handling by the fire assayer.

With the sample swap corrected, the precision for this set of data becomes acceptable.

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Edition 1 November, 2002

7.4.5.5.

Check Sample Data Interpretation

Check sampling consists of collecting a duplicate sample from material remaining from the
original sample that has not passed through the sample preparation process (see Section
7.3.5). Check samples are submitted to the primary laboratory and pass through the
complete sample preparation and assaying procedure. The results are compared against the
primary assays, also prepared and assayed at the primary laboratory.
Interpretation of check sample results should be completed as soon as they have been
received from the secondary laboratory.
The analysis procedure for check samples is the same one used for check assays. Both a
scatter plot and a Thompson-Howarth graph should be used to analyze check sample data,
since:

The scatter plot will reveal any assay bias between the two laboratories.

The Thompson-Howarth graph will provide an indication of the relative precision


between the laboratories.

However, neither a scatter plot nor a Thompson-Howarth graph can determine which
laboratory is more accurate. Accuracy can only be determined by assaying and analyzing
standard samples.
The following examples illustrate some common errors that check sample data can identify:
Example 1
THOMPSON-HOWARTH GRAPH

SCATTER PLOT
CHECK SAMPLES at LAB
ALL GRADE RANGES

CHECK SAMPLES at LAB


ALL GRADE RANGES

+20%

5.00

25.00

Warning Line
+/-20%

4.50
4.00

20.00
-20%

15.00

3.50
3.00
2.50

10.00

2.00
1.50

5.00

1.00
0.50

0.00
0.00

0.00

5.00

10.00

15.00

20.00

ASSAY A Au g/t

25.00

0.00

5.00

10.00

15.00

20.00

25.00

MEAN Au g/t

For this data set, both the scatter plot and the Thompson-Howarth graph show good
precision, except for one pair that falls above the +20% warning line.

Provided that all sampling and assaying procedures were strictly adhered to by the
primary laboratory, the possible reasons for the sample pair beyond the warning line
include:

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Edition 1 November, 2002

The sampling protocol is incorrect for the material represented by that sample for
reasons that may include the samples location in the deposit, possible high
sulphide content and/or the presence of silicification.

The sample may contain coarse gold.

An error may have occurred in a sampling or assaying procedure at the primary


laboratory. This can be verified by submitting a second check sample split.

Action Required: The location and character of the sample falling above the warning line
should be checked. At the same time, a second check sample split should be submitted to
the primary laboratory to check for possible procedural errors. If the results of these
investigations are inconclusive, a larger check sample split should be submitted for screen fire
assaying to check for coarse gold (see Section 6.5.2.2 of this reference volume).

- The initial sampling and assaying protocols may not fit all mineralization in the
deposit Example 2
THOMPSON-HOWARTH GRAPH

SCATTER PLOT
CHECK SAMPLES at LAB
ALL GRADE RANGES

CHECK SAMPLES at LAB


ALL GRADE RANGES

+20%

25.00

8.00
7.00

20.00
6.00
-20%
5.00

15.00

Warning Line
+/-20%

4.00
10.00

3.00
2.00

5.00
1.00
0.00

0.00
0.00

5.00

10.00
15.00
ASSAY A Au g/t

20.00

25.00

0.00

5.00

10.00

15.00

20.00

25.00

MEAN Au g/t

The scatter plot shows no evidence for significant sample bias in the data set.
However, both the scatter plot and the Thompson-Howarth graph of these data (which
are all from RC drill hole samples) indicate poor sampling precision for all grade
ranges. This is indicative of an incorrect sampling protocol.

Action Required: This problem is significant and must be quickly addressed, as all
primary assays are likely to demonstrate poor precision using the original protocol and
procedures. First examine the sample collection and handling practices from the drill rig
through to the sample preparation area at the laboratory to determine if established
procedures are being followed. If procedures are acceptable, then the sampling protocol
must be closely reviewed and changes made where appropriate:

Use a sampling nomograph as a basis for revising the sampling protocol.

Further testwork may be required to determine if the assay splits are


representative after each splitting stage (i.e. at the drill rig, after coarse crushing,
and after pulverizing).
7-40

Reference for Mineral Reserves and Resources

Section 7 QA/QC for Assaying and Sampling


Edition 1 November, 2002

Example 3A
This example represents an actual case from a Barrick project, where all data were generated
from diamond drill core samples. The data for these graphs were compiled in an Excel
spreadsheet and appear in Appendix 7-2.

THOMPSON-HOWARTH GRAPH

SCATTER PLOT
CHECK SAMPLES at LAB
ALL GRADE RANGES

CHECK SAMPLES at LAB


ALL GRADE RANGES

+20%

100.00

70.00
60.00

-20%
80.00

50.00
60.00

40.00
30.00

40.00

Warning Line
+/-20%

20.00
20.00
10.00
0.00

0.00
+20%
0.00

20.00

40.00

60.00
80.00
ASSAY A Au g/t

100.00

120.00

0.00

20.00

40.00
60.00
MEAN Au g/t

80.00

100.00

The scatter plot for these data (all of which are from diamond core samples) shows
that there is a high assay bias in the original assays (Assay A).

Both the scatter plot and the Thompson-Howarth graph indicate a rapid decline in
precision in the high-grade range.

The possible explanations for the bias and poor precision include:

Presence of a sampling error prior to sample preparation.

A laboratory AA calibration problem.

Laboratory contamination during either the primary sample or the check sample
assaying.

The presence of coarse gold in the higher-grade samples.

Preliminary Action Required: Note that the scales on both the plot and the graph are
insufficient for examining the behavior of the data in the lower grade ranges, where the
data diverge from the reference and warning lines. Before embarking on detailed
investigations to address the problem, the following steps were taken to further analyze
the problem:

The scatter plot and the Thompson-Howarth graph were regenerated for the grade
range from 0.10 g/t to 20.0g/t, as shown in Example 3B on the following page.

The assay results for the standards and blanks and the results of the grind checks
were investigated.
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Section 7 QA/QC for Assaying and Sampling


Edition 1 November, 2002

Example 3B
THOMPSON-HOWARTH GRAPH

SCATTER PLOT

CHECK SAMPLES at LAB


GRADE RANGE: 0.10-20.0g/t

CHECK SAMPLES at LAB


GRADE RANGE: 0.10-20.0g/t
12.00

20.00
+20%
-20%

10.00

15.00

8.00
10.00

6.00
Warning Line
+/-20%

4.00
5.00

2.00
0.00
0.00

0.00
5.00

10.00
15.00
ASSAY A Au g/t

20.00

25.00

0.00

5.00

10.00
MEAN Au g/t

15.00

20.00

The regenerated Thompson-Howarth graph shows that the precision becomes


significantly worse above 13g/t Au. Note that the scatter plot also shows divergence
of the data reaching unacceptable levels somewhere between 12.5/t and 15.0 g/t.
The precision below 13g/t Au is acceptable, since all of the duplicates are below the
warning line.

The review of the assay results for the standards and blanks and the results of the
grind checks failed to reveal any problems, indicating that it did not reside in the
primary laboratory. The reasoning behind this conclusion is as follows:

If a laboratory calibration problem was the cause for the poor precision at higher
grades, the results of the high grade standard also would have been skewed.

If the grind checks corresponding to the higher grade samples were unsatisfactory,
then poor homogeneity in these pulps could have explained the poor precision.

The blank sample results were acceptable, indicating that sample contamination
was not an issue.

Final Action Required: Because preliminary analysis indicated that the problem did not
reside at the primary laboratory, the initial sampling procedures from the drill rig to the
point where the samples are dispatched to the laboratory were reviewed. This
investigation revealed that poor sampling practices at the core shed had introduced a
sampling bias. Specifically:

The core was not aligned and split in a consistent manner.

The primary samples (Assay A) were taken from the half core with the best looking
mineralization.

The higher grade material had visible gold present.

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Section 7 QA/QC for Assaying and Sampling


Edition 1 November, 2002

These issues were resolved by instituting the correct sampling procedure for core and
improving supervision.

7.5. REFERENCES
MRDI, 1996. Assay Quality Assurance-Quality Control Program for Drilling Projects at the
Pre-Feasibility to Feasibility Report Level. In: Francois-Bongarcon, D.M., Long, S.D., Parker,
H.M., 1997. Bankable Ore Reserves and Feasibility Studies. Mineral Resources
Development, Inc. San Mateo, California, USA. AIC Conference, Singapore, November 1997.
Stanley, C.R., 1999. Treatment of geochemical data: some pitfalls in graphical analysis, in
Quality Control in mineral Exploration, short course, 19th IGES, Vancouver, British Columbia
(Assoc. of Expl. Geochemists).

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Section 7 QA/QC for Assaying and Sampling


Edition 1 November, 2002

APPENDICES

APPENDIX 7-1
EXAMPLE OF ASSAY DATA FOR STANDARD
LAB RESULTS
DATE
ASSAY
g/t Au
1-Jun
1.93
2-Jun
1.89
3-Jun
2.12
4-Jun
1.98
5-Jun
2.04
6-Jun
2.10
7-Jun
1.95
8-Jun
2.01
9-Jun
1.96
10-Jun
2.00
11-Jun
2.09
12-Jun
2.17
13-Jun
2.13
14-Jun
2.19
15-Jun
2.15
16-Jun
2.23
17-Jun
2.29
18-Jun
2.26
19-Jun
2.27
20-Jun
2.38
21-Jun
2.28
22-Jun
2.32
23-Jun
2.41
24-Jun
2.34
25-Jun
2.28
26-Jun
2.38
27-Jun
2.42
28-Jun
2.35
29-Jun
2.22
30-Jun
2.33
1-Jul
2.12
2-Jul
2.23
3-Jul
1.93
4-Jul
2.15
5-Jul
1.83
6-Jul
2.04
7-Jul
1.86
8-Jul
2.10
9-Jul
1.80
10-Jul
1.92
11-Jul
2.01
12-Jul
1.98
13-Jul
2.04
14-Jul
1.93
15-Jul
2.11
16-Jul
2.02
17-Jul
2.01
18-Jul
2.88
19-Jul
1.99
20-Jul
1.93

REFERENCE STANDARD STATISTICS


RECOMMENDED

STDEV

VALUE (g/t)

2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00

0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10

"WARNING"

"ACTION"

2.00+/-2STDEV

2.00+/-3STDEV

2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20
2.20

1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80
1.80

2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30
2.30

1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7

1
Reference for Mineral Reserves and Resources

Section 7 QA/QC for Assaying and Sampling


Edition 1 November 2002

APPENDIX 7-2
EXAMPLE OF ASSAY DATA FOR CHECK SAMPLING

Warning Lines
SAMPLE ASSAY A ASSAY B MEAN Abs.Difference
No
(Original) (Check) (A+B)/2
A-B
20% of mean A=B +20% -20%
Au g/t
Au g/t
Au g/t
Au g/t
Au g/t
1
0.25
0.23
0.24
0.02
0.05 0.1 0.12 0.08
2
0.58
0.62
0.60
0.04
0.12 100
120
80
3
0.96
1.05
1.01
0.09
0.20
4
1.23
1.02
1.13
0.21
0.23
5
1.56
1.51
1.54
0.05
0.31
6
1.81
1.88
1.85
0.07
0.37
7
2.01
2.15
2.08
0.14
0.42
8
2.32
2.21
2.27
0.11
0.45
9
2.65
2.85
2.75
0.20
0.55
10
3.25
3.02
3.14
0.23
0.63
11
3.84
3.83
3.84
0.01
0.77
12
4.25
3.95
4.10
0.30
0.82
13
6.56
7.1
6.83
0.54
1.37
14
8.15
8.21
8.18
0.06
1.64
15
10.26
9.44
9.85
0.82
1.97
16
12.76
11.1
11.93
1.66
2.39
17
14.87
10.33
12.60
4.54
2.52
18
16.18
12.83
14.51
3.35
2.90
19
20.65
13.12
16.89
7.53
3.38
20
23.36
13.62
18.49
9.74
3.70
21
29.61
21.65
25.63
7.96
5.13
22
35.63
23.11
29.37
12.52
5.87
23
37.28
28.3
32.79
8.98
6.56
24
41.22
36.41
38.82
4.81
7.76
25
52.31
32.33
42.32
19.98
8.46
26
60.33
31.76
46.05
28.57
9.21
27
74.29
48.69
61.49
25.60
12.30
28
86.29
55.24
70.77
31.05
14.15
29
95.87
66.32
81.10
29.55
16.22
30
112.32
69.36
90.84
42.96
18.17

1
Reference for Mineral Reserves and Resources

Section 7 QA/QC for Assaying and Sampling


Edition 1 November 2002

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 8

DENSITY DETERMINATIONS

Section 8 DENSITY DETERMINATIONS


8.1. INTRODUCTION ................................................................................................... 8-1

8.1.1.
8.1.2.
8.1.3.

TERMINOLOGY ........................................................................................... 8-1


DENSITY VARIATION IN MINERAL DEPOSITS. ........................................ 8-1
RELATIVE DENSITY AND AVERAGE GRADE ........................................... 8-2

8.2. MEASUREMENT OF DENSITY............................................................................ 8-3


8.2.1. WATER IMMERSION METHODS ................................................................ 8-3
8.2.1.1. Method 1 For Non-Porous or Very Low Porosity Samples .................. 8-4
8.2.1.2. Method 2 For Samples having Random Visible Pore Spaces ............. 8-4
8.2.1.3. Method 3 For Very Porous Samples.................................................... 8-5
8.2.2. TRIPLE-TUBE CORE BARREL METHOD ................................................... 8-5
8.2.2.1. Logging and Sampling Procedure........................................................... 8-6
8.2.2.2. Laboratory Instruction ............................................................................. 8-7
8.2.2.3. Density Calculation ................................................................................. 8-8
8.3. ANALYSIS AND MODELING OF DENSITY DATA.............................................. 8-8
8.3.1. ANALYSIS OF DENSITY DATA ................................................................... 8-8
8.3.2
MODELING OF DENSITY DATA ................................................................. 8-9
8.3.2.1 Assignment of Density by Geologic Domain........................................... 8-9
8.3.2.2 Assignment of Density by Statistical Estimation ..................................... 8-9

APPENDICES
Appendix 8-1

Core Recovery Record Sheet

Appendix 8-2

Density Data Spreadsheet

Appendix 8-3

Laboratory Analytical Report

Appendix 8-4

Density Drill Hole Plot

Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

8.1. INTRODUCTION
The preparation of a mineral resource estimate requires that the tonnage, grade and
contained metal in the mineral deposit be estimated as accurately as possible. When
acquiring data for the estimation of resources, much emphasis is attached to the
collection, processing and validation of numerous individual assay samples from drill holes
or rock faces to determine the grade of the deposit. As a result, it is not unusual to either
neglect altogether or to only partially sample the deposit for determination of the densities
of the material sampled. The sample densities are used to convert the measured volume
of rock (ore or waste) in the deposit into a tonnage. If adequate density data are not
collected, the deposit tonnage and, consequently, the contained metal in the deposit can
easily be over-estimated or under-estimated.

8.1.1. TERMINOLOGY
In the mining industry, it is common for the terms density and specific gravity to be used
interchangeably. However, by definition there is a distinction between these terms.
The Specific Gravity (SG) of a substance is defined as the ratio of the mass of a
quantity of a substance to the mass of an equal volume of a standard substance
(normally water at 4oC). Being a ratio, the SG is a number with no unit value. If a
mineral or rock has an SG of 2, this indicates that it has twice the mass of the
same volume of water at 4oC.
The Density (D) of a substance is defined as its mass per unit volume (density =
mass/volume) and therefore is expressed in grams per cubic centimetre when
using the metric system of measurement. In the metric system, the density of a
substance is numerically the same as its SG because the mass in grams of one
cubic centimetre of the substance is numerically equal to its ratio to an equal
volume of water at 4oC, since the same volume of one cubic centimetre of water at
4oC weighs one gram.
Although both SG and D data are commonly used in resource estimation, the preferred
methods for estimating tonnage of in situ and broken material are the following:
The apparent Relative Density (RD) of the rock accounts for the porosity, voids
and other open spaces such as fractures in the in-situ rock volume.
The Bulk Density (BD) is determined when estimating the tonnage of broken rock,
whether contained in a stope underground or in a surface stockpile. BD is defined
as the mass of crushed or broken material that occupies a specific volume.
Resource/reserve estimates are always done on a dry (moisture free) tonnage basis, so
it is essential that all samples are completely dried prior to initial weighing during density
determinations, or alternatively, that moisture content is determined and a correction made
if samples are not dried before initial weighing.

8.1.2. DENSITY VARIATION IN MINERAL DEPOSITS


Most metalliferous deposits are heterogeneous in character, so it is essential to establish
the variations in the density across the deposit. Density variations are dependant on
factors such as lithology, alteration, mineralization (i.e. sulphides), porosity, joints and
fractures, weathering and depth. For a given lithology, the density of a rock mass
8-1
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

generally increases with depth below the surface as a result of a decrease in weathering
and, also, a decrease in open spaces with the increasing weight of overlying rock. In the
weathering profile, lower near-surface densities result from an increase in open space or
an increase in volume primarily due to the breakdown of certain rock minerals to clays.
Variations in mineralization content, also, can substantially affect density. For example, in
massive and semi-massive sulphide deposits, significant density variations can occur
depending on the type and percentage of sulphides present.

8.1.3. RELATIVE DENSITY AND AVERAGE GRADE


The following section provides a brief discussion of the importance of density
measurements in determining the average grade of a mineral deposit.
As described in Section 6, SAMPLE PREPARATION & ASSAYING, of this reference
volume, metal assays are determined in a laboratory using weighed dry samples, and the
assays are recorded as metal content by weight. For base metals, the metal content is
expressed as a percentage by weight of the sample. In many countries, precious metal
content is expressed in the metric system as the grams of metal per tonne of sample. In
the United States and other countries, precious metal content is expressed as troy ounces
per short ton, where one troy ounce is equivalent to 31.1032 grams and a short ton
contains 2,000 pounds.
The collection of assay samples invariably occurs over a linear interval such as a downhole length in a drill hole or as a sampled width in mine workings. The assay values from
the linear intervals are then usually applied on a weighted basis to determine the average
grade. This is done by multiplying the assay values by their respective lengths, adding up
the cumulative assay value and length products and then dividing by the total length. In
deposits defined by drill holes, the length of the sample is almost always proportional to its
volume, due to the drill hole diameter being constant over the sampled interval. As a
result, the length weighting is essentially a volume weighting of the assays.
If the intervals of mineralization sampled in the deposit are relatively homogeneous with
respect to apparent RD, as is assumed in many bulk tonnage gold deposits, then
estimation of average grade by volume weighting will have negligible error, since each
sample volume will have approximately the same weight.
If however, the intervals of mineralization have unequal RDs (as is more often the case
when sulphide minerals are present), then the individual samples will have a range of
weights for the same volumes. This can have a significant effect on the grade estimate.
For example, a sample with twice the density of another sample having the same volume
and grade wiIl have twice the weight and also twice the metal content. In this case, if the
RDs are not also used in the weighting estimate for all samples, then the average grade
calculated may be incorrect, depending on the grade of the samples having the higher RD.
It should be remembered that higher RDs do not always reflect higher grades, due to the
presence of accessory sulphides such as pyrite or marcasite.

8-2
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

8.2. MEASUREMENT OF DENSITY


8.2.1. WATER IMMERSION METHODS
As indicated above, apparent RD measurements for purposes of resource estimation must
account for fractures, voids, or pores within the rock volume. When measuring density of
rock samples where water saturation is likely to occur because of voids in the sample, the
sample must be sealed to prevent this saturation prior to using a water immersion
technique. Coating the sample with beeswax or paraffin or wrapping the sample in plastic
sealing wrap are two simple ways of sealing a sample.
Three methods of density measurement by water immersion are described below. For
each of these methods the following types of equipment are needed:

A digital-reading top loading balance with a weighing hook suspended beneath.


The balance must also have a zero reset (taring) function.

A stool or table with a hole cut in it to allow the balance to rest on the table and be
placed over the hole and to allow access to the weighing hook below the balance.

A wire cage suitable to hold the rock or core samples being measured. A
suspension cable should be attached to the cage to allow it to be suspended from
the weighing hook below the balance.

A bucket of water.

The equipment should be set up as shown in the diagram below.

Equipment needed for density determination by water immersion methods (balance


actually rests on table)
8-3
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

8.2.1.1. Method 1 For Non-Porous or Very Low Porosity Samples


This is the most widely used method for determining the apparent RD of a sample. It is
suitable for non-porous or very low porosity samples, which can be weighed quickly in
water before saturation occurs.
Steps
1. Dry sample at 100oC in an oven for at least 12 hours.
2. Set up balance and suspend the wire cage from the balance hook so that it swings
freely in the bucket of water.
3. Set (tare) balance to zero, using the appropriate adjustment knob or reset button.
4. Weigh the dry sample in air on the top of the balance and record the weight as W1.
5. Place the sample in the suspended wire cage in the bucket and weigh totally
immersed in water. If the digital readout is stable, record the weight as W2. If the
digital readout on the balance is unstable and gradually increases, this indicates
that the sample is porous and becoming saturated with water, and the sample
must be re-dried and then sealed as described in Method 3 before reweighing.
RD

W1 / (W1 W2)

8.2.1.2. Method 2 For Samples having Random Visible Pore Spaces


Steps
1. Dry the sample at 100oC in an oven for at least 12 hours.
2. Set up the balance and suspend the wire cage from the balance hook so that it
swings freely in the bucket of water.
3. Set (tare) the balance to zero, using the appropriate adjustment knob or reset
button.
4. Weigh the dry sample in air on the top of the balance and record the weight as W1.
5. Soak the sample in water until saturated (approximately one hour), then remove
the sample and dry off any excess water from its surface.
6. Weigh the saturated sample in air on the top of the balance and record the weight
as W2.
7. Place the wet sample in the suspended wire cage in the bucket and weigh totally
immersed in water, recording the weight as W3.
RD

W1 / (W2 W3)

8-4
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

8.2.1.3. Method 3 For Very Porous Samples


Steps
1. Dry the sample at 100oC in an oven for at least 12 hours.
2. Dip the sample into molten paraffin wax or bees wax for two seconds to seal the
sample. Scrape off any excess wax. The sample can also be sealed with lacquer,
shellac or plastic sealing wrap.
3. Set up the balance and suspend the wire cage from the balance hook so that it
swings freely in the bucket of water.
4. Set (tare) the balance to zero, using the appropriate adjustment knob or reset
button.
5. Weigh the sample in air on the top of the balance and record the weight as W1.
6. Place the sample in the suspended wire cage in the bucket and weigh totally
immersed in water, recording the weight as W2.
RD

W1 / (W1 W2)

Because the weight of the wax on the sample is insignificant compared to the rest of the
sample, it is usually ignored.

8.2.2. TRIPLE-TUBE CORE BARREL METHOD


When drilling the oxide and transitional zones in a deposit, high rock porosity and
fracturing can make recovery of sufficient core for determination of RDs very difficult.
Poor core recovery and rock quality in these zones can render the water immersion
methods useless for determination of RD. When confronted with core recovery problems
during drilling, the use of a triple-tube core barrel can facilitate the collection of samples for
the measurement of RDs in the oxide, transitional, or badly fractured sulphide zones. The
basis of this method is the accurate measurement of the mass (or weight) and volume of
each drilled interval of core. The use of triple-tube core barrels (particularly larger-diameter
HQ tools) is preferred in order to ensure maximum recovery of undisturbed drill core from
the drill hole. It is important that the drilling contractor understands the importance of
maximizing core recovery for RD determinations. If necessary, drilling additional holes to
obtain samples for RD determinations may be needed and performed under a separate
drilling contract.
The density of both ore and waste vary with depth in the weathering profile and also vary
with changes in mineralogy. If it is found that additional core holes must be drilled
principally to acquire additional density data, these holes should be sited across the
deposit in order to obtain sufficient data to give representative densities through the
weathering profile and from all ore types present. An example of the siting of drill holes
required for adequate coverage is shown in the section diagrams on the next page. The
drill holes do not have to be located on the same section. Rather, the holes should be
spread across the deposit to provide uniform coverage for data collection.

8-5
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

Drill hole locations for density sampling shallow-dipping ore zone

Drill hole locations for density sampling steeply-dipping ore zone

8.2.2.1

Logging and Sampling Procedure

Drill core from triple-tube drilling is best logged and marked up for sampling after each drill
run before the core is removed from the innermost (split) tube. This ensures that no core
is lost or disturbed during transfer to a core box or tray prior to logging. To avoid rig standby time, the drill contractor will need to have 2 or 3 sets of split inner tubes in order to
allow time for logging and sampling while the driller continues to advance the hole.
After the removal of each run of core from the hole, the triple-tube splits should be
carefully removed from the inner tube. The core-filled split inner tubes should be placed on

8-6
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

a rack, the top splits should be removed carefully, and the core should be left undisturbed
in the bottom splits for logging. The following procedure should then be followed:
1. Carefully fit together any broken sections of core.
2. Mark up and accurately measure the lengths of core to be sampled for assay.
Sampling should take into account and respect the natural geological breaks
(lithology contacts, veins or stockwork zones, for example). It is very important
that only actual lengths of core in each sampled interval are measured for the
volume calculation. It is also important to note that the cumulative length of the
core recovered in the split inner tube may not equal the length drilled according to
the drillers depth record. Core loss or core lengths that exceed the length of the
drilled interval can skew the determination of sample lengths if care is not taken to
account for these. For a description of how the cumulative length of core
recovered can exceed the length actually drilled, see Section 5, GEOTECHNICAL
AND GEOLOGICAL DATA COLLECTION, of this reference volume. Core loss
and/or overrun should be recorded separately by the geologist (see example form
in Appendix 8-1).
3. Photograph the core (see Section 4.16.7).
4. Log the core for geology.
5. Carefully clean excess drilling mud from the core and measure the core diameter
in several places with vernier calipers to obtain an average core diameter for the
run. Note where core is broken if this is likely to affect the core length
measurement. If the core is worn to less than the expected normal diameter by
washing or bit wander, then an estimate should be made of the extent of wear,
such as 4cm length of sampled interval 30% worn. This will allow an adjustment
to be made when completing the core volume calculation.
6. Whole core from each sample interval should be transferred to a large numbered
sample bag, taking care not to lose any of the sample.
7. Dispatch the samples to the laboratory for determination of RD and subsequent
assay.

8.2.2.2

Laboratory Instruction

Written instructions should be sent to the laboratory with the dispatched sample lot. The
instructions should read as follows:
1. Weigh each whole core sample (the entire contents of the sample sack before
drying and record as WW.
2. Oven-dry each whole core sample for 12 hours at 105oC.
3. Weigh each dried whole core sample and record as WD.
4. Prepare each sample for gold or other metal analysis.
The wet sample weight WW is not used for the density calculation. This measurement by
the laboratory is for the calculation of the moisture content of the rock, where:
8-7
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

% Moisture = [( WW - WD) / WW] x 100

8.2.2.3

Density Calculation

The apparent RD of each sample is calculated as follows:


RD =

Mass / Volume
=

Where

WD / r2 L
WD = Dry weight of sample
=

3.1416

r =

Average Radius of core from vernier caliper


measurements within the sampled interval

L =

Measured length of core in sample interval

The density data should be entered into a spreadsheet as shown in Appendix 8-2. An
example of a page from a Laboratory Analytical Report for density samples is shown in
Appendix 8-3.

8.3. ANALYSIS AND MODELING OF DENSITY DATA


8.3.1.

ANALYSIS OF DENSITY DATA

Analysis of the density data from the diamond core holes will enable:

Density values to be assigned to the various rock types in the deposit both in the
weathered and non-weathered zones.

Separation of ore and waste densities within weathered and non-weathered zones.

The development of a depth / density profile.

In order to analyze variations in density across a deposit, all of the data for each drill hole
should be plotted on cross sections. These data include:

Sample intervals.

Drill hole assays.

Density values (RD if available).

Drill hole lithologies.

Weathering profile contacts, including those between the oxide and transition
zones, and the transition and sulphide zones.

In Australia and some other countries, these contacts are referred to as the Base of
Complete Oxidation (BOCO) and Top of Fresh Rock (TOFR). An example of a cross
8-8
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

section of this type for the Salmon deposit at Barricks Plutonic operation in Australia is
included in Appendix 8-4.
From analysis of the data, it can be determined if uniform density values can be assigned
to entire domains based on zone of weathering (oxide, transitional, or sulphide), ore types,
lithologies, alteration types, or other geologic features, or if a more complex approach to
density determination is warranted.

8.3.2.

MODELING OF DENSITY DATA

8.3.2.1

Assignment of Density by Geologic Domain

Once RD values are assigned to the appropriate zone of weathering (oxide, transitional, or
sulphide), ore types, lithologies, or alteration types, the interpreted outlines on the cross
sections that represent these geologic domains can be correlated or linked by wire
framing or other three-dimensional modeling techniques. The resulting three-dimensional
domains can then be used to cut the resource block model and back-code the blocks so
that an RD value can be assigned to each block in the model (see Section 9).
For example, in the Salmon deposit, it is possible to separate the densities for the various
rock types based on the geological logging (i.e., Transported Alluvium (AL), Pisolitic
Laterite (PI), Mafic and Ultramafic derived Bedrock Clays (CB/MU and CB/UM),
Sedimentary derived Bedrock Clays (CB/SU) and primary unweathered rock types
including Mafics (MU), Basalt (BV), Ultramafics (TC/TCU) and Felsics (FV). By selecting
all of the samples in these units separately, the weighted average (by sample volume) of
the densities in each rock type can be calculated. A further breakdown is also possible into
mineralized and unmineralized (waste) parts of these rock units.
The RD data can be summarized and assigned for use in the resource estimate using the
following table:

RELATIVE DENSITY (RD) DATA


Rock Unit

Depth Range

Mineralized

Unmineralized

AL
PI
CB/MU
CB/UM
CB/SU
MU
BV
TC/TCU
FV

8.3.2.2

Assignment of Density by Statistical Estimation

For deposits having significant local density variability (such as Barricks Eskay Creek
operation in British Columbia, Canada, or massive sulphide deposits such as Bousquet in
Quebec, Canada, or Kabanga in Tanzania), statistical modeling of density values should
be seriously considered, whereby a separate estimated density value is assigned to each
block in the resource model. This should be done using all available measured RD data.
However, if measured RD or other measured density data are judged to be sparse in light
8-9
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

of the variability observed in the available data, an RD value should be obtained where
possible for those samples that contain significant amounts of sulphides that might
substantially skew in situ density modeling, as determined by the geologists.
Where drill core is not available for analysis, substitute density values can be generated
mathematically using a stoichiometric algorithm. This approach, which is used at Barricks
Eskay Creek operation, considers the assay value for a sample and the presence of
individual sulphide minerals in the sample (based on the drill hole logs) to calculate a
density value that is based on the stoichiometric ratios of the assayed metals in the
individual sulphide minerals. While this approach can reasonably provide substitute
density data for a new project until additional drilling can be completed that allows
sufficient sampling of in situ density, the results must be used with extreme caution for the
following reasons:

The logging and description of sulphide minerals must be thorough and


comprehensive.

Assay and analytical data for all major sulphide constituents must be available
(especially iron and sulphur).

The density obtained using this approach is not an RD value, as there is no way to
take into account any voids or fractures that might have been present in the
sample.

Ultimately, there is no acceptable substitute for drilling sufficient HQ holes to provide


adequate coverage for actual in situ relative density determinations. When coupled with
the additional assay data that these holes generate, particularly in the higher grade
portions of a deposit, the cost of the drilling is justified.

8-10
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

APPENDICES

APPENDIX 8-1
EXAMPLE
HOLE NO.: FDD017
PROJECT: XYZ
HQ3 TRIPLE TUBE DRILLING
DRILLING RECORD SHEET

DRILL

FROM

TO

DRILLED

RUN

CORE
RECOVERED(M)

20.68

21.64

0.96

0.97

21.64

23.00

1.36

1.36

23.00

24.00

1.00

0.97

10

24.00

25.00

1.00

0.99

11

25.00

26.00

1.00

1.00

12

26.00

27.07

1.07

1.07

13

27.07

28.00

0.93

0.95

14

28.00

29.00

1.00

0.99

15

29.00

30.50

1.50

1.55

16

30.50

32.00

1.50

1.52

17

32.00

33.50

1.50

1.51

18

33.50

35.00 (EOH)

1.50

1.41

TOTAL

35.00m

34.94m

1
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

DRILL CORE / DENSITY DETERMINATIONS

Sample

Section 8 Density Determinations


Ver. 1 - November

Number
D19891
D19892
D19893
D19894
D19895
D19896
D19897
D19898
D19899
D19900
D19901
D19902
D19903
D19904
D19905
D19906
D19907
D19908
D19909

HOLE NO. FDD017


Depth
Interval
(m)

From
0.00
1.13
2.00
3.00
4.00
5.00
6.50
7.00
8.00
9.00
10.00
11.00
12.00
13.00
14.00
15.00
16.00
17.00
18.001

To
1.13
2.00
3.00
4.00
5.00
6.50
7.00
8.00
9.00
10.00
11.00
12.00
13.00
14.00
15.00
16.00
17.00
18.00
19.00

L
1.13
0.87
1.00
1.00
1.00
1.50
0.50
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00

PROJECT: XYZ
Measured Core
Length
in Sample
(cm)

67
90
100
96
103
92
53
94
100
104
96
1001
105
95
100
102
97
101
102

Core
Diametre
(cm)

6.2
6.2
6.1
6.1
6.1
6.1
6.0
6.1
6.1
6.1
6.0
6.0
6.0
6.0
5.8
6.0
6.0
6.0
6.0

LOCATION:
Core
Dry
Volume
Weigh
(cm3)
t of
Core
(gms)
2022.77
2717.16
2922.46
2805.56
3010.14
2688.66
1498.53
2747.11
2922.46
3039.36
2714.33
2827.43
2968.80
2686.06
2642.07
2883.98
2742.61
2855.70
2883.98

Density
gms/cm3

(Local Grid)
496ON 4960E
Comments

Soft, poorly consolidated


Soft, poorly consolidated
Soft
Soft, broken
Soft, poorly consolidated
Soft, poorly consolidated
Solid core
Solid core
Solid core
Solid core
Solid core
Solid core
Solid core
10 cm 15% worn

Solid core
8 cm broken core

APPENDIX 8-2

Reference for Mineral Reserves and Resources

,
EXAMPLE

APPENDIX 8-3

Perth W.A.

Job Number:3PE3012
O/N :2006249
ANALYTICAL REPORT
SAMPLE
Dry
D20861
D20862
D20863
D20864
D20865
D20866
D20867
D20868
D20869
D20870
D20871
D20872
D20873
D20874
D20875
P20876
D20877
D20878
D20879
D20880
D20881
D20882
D20883
D20884
D20885
D20886
D20887
D20888
D20889
D20890
D20891
D20892
D20893
D20894
D20895
D20896
D20897
D20898
D20899
D20900
UNITS
DT.LIM
SCHEME

Au Dupl.
0.17
0.04
<0.01
0.01
0.91
0.15
0.31
0.21
0.06
1.41
1.73
1.29
0.65
0.43
0.37
0.17
0.03
0.03
0.03
0.02
0.01
<0.01
<0.01
0.01
0.21
0.01
<0.01
<0.01
<0.01
<0.01
<0.01
0.81
0.04
<0.01
<0.01
0.02
<0.01
0.01
<0.01
<0.01
PPM
0.01
FA1

Au Dp2

1.04
-0.39
0.19
-1.60
1.83
1.31

0.02
--

0.32
--

0.95
--

PPM
0.01
FA1

Au Avg
0.17
0.04
<0.01
0.01
0.97
0.15
0.35
0.20
0.06
1.51
1.78
1.30
0.65
0.43
0.37
0.17
0.03
0.03
0.0'3
0.02
0.02
<0.01
<0.01
0.01
0.27
0.01
<0.01
<0.01
<0.01
<0.01
<0.01
0.88
0.04
<0.01
<0.01
0.02
<0.01
0.01
<0.01
<0.01
PPM
0.01
FA1

AU Dp3

PPM
0.01
FA1

Wt Wet

6217
5893
5920
6443
6042
6671
6545
6443
6385
6005
5776
6217
5843
6271
6704
4669
6483
8501
7391
6732
6322
7243
6441
7193
8523
6375
6173
6551
6749
6526
7168
6619
7381
7099
6739
7764
8650
7481
6812
6720
g
0.01
WAT26

Wt

4948
4718
4662
5191
5031
5732
5609
5383
5305
5091
4892
5448
4999
5480
5735
4081
5749
7890
7125
6321
5982
6654
5941
6991
8234
5714
5551
5955
6144
5951
6465
5945
6870
6781
6444
7642
8615
7231
6492
6194
g
0.01
WAT26

1
Reference for Mineral Reserves and Resources

Section 8 Density Determinations


Edition 1 November, 2002

APPENDIX 8-4

Reference for Mineral Reserves and Resources

1
Section 8 Density Determinations
Ver. 1 November, 2002

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 9

RESOURCE MODELING

Section 9 RESOURCE MODELING


15.1
15.2
15.3
15.4
15.5
15.6
15.7
15.8
15.9
15.10

INTRODUCTION ......................................................................................................1
GEOLOGIC INFORMATION ....................................................................................2
ASSAY INFORMATION ...........................................................................................3
ASSAY STATISTICS ...............................................................................................4
TOPOGRAPHY ........................................................................................................5
GEOLOGIC MODEL ................................................................................................5
ASSAY COMPOSITES ............................................................................................7
VARIOGRAMS .........................................................................................................8
GRADE MODEL.......................................................................................................8
RESOURCE CLASSIFICATION ..............................................................................9

Reference for Mineral Reserves and Resources

Section 15 Production Reconciliations


Edition 1 November, 2002

15.1 INTRODUCTION
The resource model serves as the interface between the various disciplines involved in
defining ore reserves. All other tasks within the ore reserve process either provide
information to the resource model or depend on information provided by the resource model.
For example: The drill logs, geologic mapping, and surface topography form the basis for the
geologic framework of the resource model. The sample assays, density determinations,
geotechnical, and metallurgical tests are used to develop models of the metal grades, metal
recoveries, resource tonnage, and rock quality. The resulting resource model provides the
information necessary to permit the mining engineer to develop optimum mining limits, mine
designs, and schedules. The metallurgist can then determine the amounts and characteristics
of the various types of plant feed and thereby develop a processing strategy and plant design.
A resource model consists of spatial estimates of various important characteristics of an ore
body. A simple resource model would typically contain estimates of the rock/alteration type,
rock density, and grades for the important metals.
Early in the exploration and development of a project, the resource model is necessarily fairly
simple since sample data is limited and geologic understanding is preliminary. As drilling
progresses and the geologic framework is better understood, the resource model becomes
more complex. Care should be taken, however, to avoid over-modeling. The detail and
complexity of the resource model should be dictated by the availability and reliability of the
underlying information. The amount of information required for proper definition of a given
mineral deposit will be dictated by 1) the nature and complexity of the geology of the deposit
and 2) the complexity of the optimum mining and processing scenario. A good rule to follow
with resource models is that the simpler solution is usually the better solution.
Earlier we said that a resource model consists of a collection of spatial estimates. It is
worthwhile to look at the two words that make up that term. Spatial expresses that the
resource model provides information that depends on location in three-dimensions (or in
some cases two-dimensions). Estimate expresses the idea that the values in a resource
model are not very precise. Much time and money can be spent in trying to resolve some
aspect of a resource model to very high levels of precision. These efforts should always be
tempered with the understanding that the combined errors involved in sample location,
preparation, and assaying.
Considering the inherent errors in the input measurements, it might seem surprising that a
resource model would ever be capable of providing information of the quality needed to make
good mining and processing decisions. In this regard, the reliability of a resource model is
grounded in some fairly simple statistical concepts. The first of these concepts is the notion
of a central limit. The more times a characteristic like gold grade is measured, the more the
results will tend to group around a central limit or mean. So one way a resource model
overcomes inherent sampling variability is by using very large numbers of samples. Equally
as important as collecting and assaying huge numbers of samples, however, is ensuring that
as the sample results group around a central limit, that the central limit is not biased, in other

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Reference for Mineral Reserves and Resources

Section 15 Production Reconciliations


Edition 1 November, 2002

words it accurately reflects the true grade of the deposit. A good discussion of precision and
accuracy is given in Section 6.2.1 of this reference volume.
Within a small portion of a resource model (a single underground stope or a single open pit
ore outline), the accuracy of an estimate can be very low. As the portion of the model
increases, the accuracy of the estimate should improve. A good rule of thumb for larger
volumes of material (a years production, a full cut back in an open pit) is that accuracy within
plus or minus ten percent should be achievable. Inaccuracy that is reflected by bias
consistently in the same direction for large volumes indicates a problem either in the reserve
estimate or in the production data used for the comparison. These types of comparisons are
called reconciliations and are discussed in detail in Section 15 of this reference volume.
Resource models can be separated into two major components; the geologic model and the
grade model. One of the most important aspects of the resource modeling process is to
ensure that these two components are linked to one another. To put it another way, the
geologic model should do a good job of identifying metal grade, namely, separating
mineralized from unmineralized material. If this is accomplished, the grade model will make
geologic sense. Because these two modeling components should be closely lnked, it is
impractical to discuss them separately. Rather the sub-headings in this section will be
organized so that the two modeling components, geology and grade, will be discussed in the
sequence that they evolve in a resource model

15.2 GEOLOGIC INFORMATION


The most common type of geologic information used in resource modeling is the geologic log.
The geologic information typically comes from drill logs of either RC cuttings or diamond core.
Similar logs might also be available from surface sampling and mapping of road cuts, pit
walls, pit floors, or other rock outcrops; and from underground sampling of faces, ribs, or
muck piles. Sections 4 and 5 of this reference volume discuss logging in some detail. To
ensure a useful geologic model, It is very important early in the project to ensure that geologic
logging procedures are consistent among all project geologists. Consistency should be
developed with respect to both interpretation and notation. Recognition of rock and alteration
types and intensities must be communicated between all project geologists on a regular basis
so that each geologists eye is calibrated consistently with the other geologists. The
geologists should create a working list of valid rock type names, alteration names, and
alteration intensity levels and log using only those conventions.
Discrepancies in notation and interpretation will always exist in the geologic data. These
discrepancies should be identified continually and corrected. The easiest way to check the
logs is to compare them to the valid log entries. Exceptions should be noted by drill hole
name and downhole interval and given to the geologists for correction. Drill hole intervals
should also be checked to ensure that from-to intervals are consistent (from less than to)
and that intervals do not overlap. It is also good practice to note any unlogged intervals. All
interval inconsistencies should be reported to the geologists for correction.

9-2
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Section 15 Production Reconciliations


Edition 1 November, 2002

The geologists use the logging information to develop plan maps of the geology at the
topographic surface or at other levels either underground or in a pit. The geologic information
is usually also compiled on cross sections at a spacing dictated by the spacing of the drilling
and at orientations dictated by the geometry of the faulting and attitudes of the rock and
alteration units . As drilling and logging information increase, section and level spacing is
reduced to add more detail to the geologic interpretation. The development of geologic level
plans and cross section should be an iterative process where geologic boundaries on levels
are projected to sections and vice-versa to ensure tree-dimensional consistency.

15.3 ASSAY INFORMATION


The drill hole samples, submitted for assay are recorded using drill hole name and the
downhole interval sampled. Surface and underground channel samples are similarly
recorded. Conventions for drill hole naming and sample numbering are discussed in Section
4 of this reference volume. In the same manner as the geologic logs, sample intervals should
be checked for overlap, from greater than to, and unsampled or unassayed intervals. All
inconsistencies shoud be reported to the geologists.
Assay results are usually cross-referenced to the sample interval using a unique sample
number. This cross-referencing is a common source for errors in the assay data but is
becoming less of a problem with the digital transfer of assay results directly from the
laboratory and computerized posting of those results in a digital data base. Nevertheless
diligent checking of the sample numbering should be carried out throughout a project.
Duplicate and missing sample numbers should be reported to the geologists for follow-up with
the laboratory. Even with the computerized methods, it is still recommended that the final
assay data base is hand checked against the assay certificates and the geologists sample
logs. At least five to ten percent of the entire data base should be randomly checked on an
ongoing basis. Resulting discrepancies should be reported to the geologists and the
laboratory.
Assay results should also be checked for consistency. Assays below detection limit are
reported in various ways depending on the laboratory. These assays should be replaced with
a zero or a value of half of the detection limit. Assays that are greater than the detection limit
should be reassayed using a more effective method. In addition to the detection limits, all
assays should be checked to ensure that other values do not occur at an abnormally high
frequency. Large numbers of low-grade assays at multiples of the detection limit are to be
expected. Assays at higher grades should occur at a frequency consistent with the
underlying grade distribution ( grade distributions will be discussed below). Abnormally high
frequency of assays should be reported to the laboratory and require re-assay of those
samples.
Drill hole collars and surface and underground sample locations are usually surveyed using
conventional surveying techniques or GPS where practicable. Drill hole samples are further
located using downhole surveys ( see Section 4.12). Downhole survey measurements should
be checked for consistency of intervals as discussed previously. Large fluctuations in
inclination or azimuth (except at near-vertical inclination) should be reported to the geologists.
Accuracy of the downhole surveys can be checked in another way if the drill holes penetrate a
consistent and predictable geologic contact. Holes that show such a contact to be out of place
9-3
Reference for Mineral Reserves and Resources

Section 15 Production Reconciliations


Edition 1 November, 2002

could have downhole survey or collar location problems. Underground drill holes should
always be checked against the drill logs to verify the inclination since these holes can have
either positive or negative inclination. Drill hole collar and surface sample locations can be
checked against topography to ensure that the elevations are consistent.
Large
discrepancies should be checked.

15.4 ASSAY STATISTICS


One of the early steps in resource modeling is characterization of the statistical behaviour of
the raw assay grades. The term raw assay refers to the original sample assays as opposed
to composite assays to be discussed below. Simple statistics should be compiled early in the
project to begin to determine if the mineralization encountered warrants further drilling. The
common statistics compiled include total number of samples, total and average sample
length, average or mean grade, variance and standard deviation of the grade, coefficiant of
variation ( standard deviation/ mean), minimum and maximum grade. These statistics should
be calculated for all significant geologic units. This permits the geologists to focus further
sampling on the units of interest. It also permits the resource modeler to begin developing a
strategy for further work.
Once the drilling and sampling has progressed beyond a few drill holes, additional statistical
study is warranted. The most useful statistical tool at this point is the grade frequency
histogram. The histogram groups assay data into equal-length grade intervals or classes.
The number of samples in each class (frequency) is then plotted in bar graph form to display
the grade distribution of the assays. If the data is normally distributed, the bar graph will have
a bell-shape and the mean grade will correspond to the highest bars. Examples of normallydistributed data are specific gravity and major element concentrations such as silica and iron.
Gold grades are seldom normally distributed. Rather, low-grade gold assays are much more
frequent than higher-grade assays, often resulting in a log-normal distribution. (logs of the
grades are normally distributed). To construct histograms of log-normal distributions, instead
of using logs of the grades, the class interval widths are log-normally adjusted so that lowgrade class intervals are much narrower than higher grade intervals. The resulting histogram
permits grades to be read directly.
Histograms of gold grades, even when log-normally adjusted, often show much higher
frequency of low-grades than indicated by a log-normal distribution. This is caused by the
large amount of unmineralized material that is typically sampled and assayed within the
deposit area. Any geologic zone with grades that show a good log-normal distribution is likely
an important geologic control for mineralization and should be given strong consideration in
the resource model.
The other raw assay statistical tool worth mentioning is the cumulative frequency plot. In this
plot, grades in each increasing grade class are added to the previous classes to develop a
cumulative number of assays either less than or equal to a given grade. The cumulative
number of assays or percentage of assays is then plotted against the respective grade as a
line. In the case of log-normally distributed grades, the cumulative frequency is plotted
9-4
Reference for Mineral Reserves and Resources

Section 15 Production Reconciliations


Edition 1 November, 2002

against the log of the grades. The resulting line provides some insights into the underlying
grade distribution. Changes in the slope of the line indicate more than one grade population.
The highest-grade portion of the line usually gets very erratic. The grade at which the line
begins to show erratic behaviour is a good indication of the grade cap that should be applied
to samples with grades higher than this value.
Both the histogram and cumulative frequency plot should be constructed individually for each
geologic zone to further assist in recognizing the important geologic controls for mineralization

15.5 TOPOGRAPHY
A key component of the resource model is the accurate definition of the pre-mining surface
topography. This surface is important for accurate assessment of tonnages in open pit
projects and for proper placement of mine and plant infrastructure in all projects.
Topography is defined through use of aerial survey flights in which closely-spaced stereo pair
photographs are taken of the area to be surveyed . Control points are marked on the ground
prior to the flights so that they can be located in the air photos. These points are also located
using conventional surveying methods or GPS. The stereo air photos are then used to
digitally contour the topography. These digital contours are adjusted in X,Y,Z using the control
points as a reference. The digital contours are provided for use, usually in the form of
Autocad DXF files. Alternatively the surface topography can also be transferred as gridded
elevation data at a fairly small grid spacing.
The contours or elevation grid are then loaded into various mining software packages to be
used as is or to create a three-dimemsional surface. The surface then forms one of the
control surfaces within the geologic model.

15.6 GEOLOGIC MODEL


The first control for the geologic model, topopgraphy, was just discussed. Other geologic
features are incorporated into the geologic model in the form polygons defined on either cross
sections or level plans or as three-dimensional solids and surfaces derived from the same
sections or level plans.
The sectional or level plan polygons are constructed from the geologic interpretation
discussed previously. The polygons are usually digitized from paper sections or plans. In
some projects, they are digitized directly on a computer screen. Either way, care should be
taken to maintain the consistency and quality of the polygons. Some of the items to consider
are: 1) Avoid crossing lines in polygons. While this problem can usually be detected and
repaired within the mining software package, it can be time consuming and diligence at the
digitizing stage will save time later. 2) Digitize polygons in a consistent clockwise direction.
This can usually be fixed in the mining software. If polygons are digitized internal to other
polygons, check the software to determine if anyi-clockwise rotation is required. 3) Effort is
often made at the digitizing stage to make polygon edges match exactly the adjacent
polygons to create visually pleasing digital cross sections. This is not usually a good idea,
particularly when the polygons will be linked to make three-dimensional solids as will be
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discussed below. A better method is to overlap polygons such that the lower priority polygon
is overlapped by all higher priority polygons. Priority will be discussed below. 4) Care should
be taken to assign the correct plane reference to each polygon. In digitizing paper sections
this is just a matter of keeping track of the elevations or sections and assigning them
correctly. Digitizing on the screen can cause the plane coordinates to change unexpectedly if
the sectional position is moved during digitizing. In either case, including the planar reference
in the name of the polygon will permit correcting mistakes.
Once digitized, the polygons can then used to create three dimensional solids. The simplest
solids are created by projecting each polygon halfway to the next adjacent section. Resulting
solids have abrupt steps between sections. The polygons can also be linked together with a
series of triangles to form three-dimensional solids with smoother transitions between
sections. These types of solids look better in three-dimensions but can have inconsistencies
if the underlying polygons are adjusted for no overlap. Small volumes between solids can
remain unaccounted for because adjacent solids usually do not link up with the same
triangles.
The three-dimensional solids provide a convenient way to reconcile sectional interpretations
to plan and vice-versa. Most mining software permits the solids to be sliced at any plane
orientation and spacing. These slices can then be used to check the exiting interpretation on
that sectional plane. Once adjustments are made, the revised slices are re-linked into a solid
and sliced on the original orientation to further reconcile the three-dimensional interpretation.
Several iterations of this kind might be necessary to develop a shape that is consistent in
three dimensions.
The three-dimensional solids or the polygons are then used to assign the relevant geologic
codes to a three dimensional block model. If the block sizes within the model are uniform,
geological assignments are usually done based on the position of the block center relative to
the solids or polygons or based on the solid or polygon that contains the majority of the block
volume. When polygons or solids overlap the assignment is made based on the priority of the
polygons or solids in question. The highest priority polygon or solid is assigned to the block.
In some cases the percentages of the block contained in the various polygons is retained
along with the appropriate geologic codes. If the block sizes are variable, then smaller
blocks, usually called subcells, are added at the polygon or solid edges to better define the
geologic contacts. These subcell models can create very large computer files so the need
for higher resolution of the geologic contacts should be honestly evaluated.
Topography is usually added to the model as a value in each block indicating the percentage
of the block that is below the topographic surface. This procedure requires that there be
sufficient blocks above topography at all positions in the model. Once the percentage value
has been assigned, they should be verified for a complete set of sections or plans at the
topographic surface.
All levels and sections of the final geologic model should be viewed in plan and section to
ensure that the block assignments have been made correctly. The importance of this visual
check cannot be over-emphasized. Care in constructing the geologic block model will save
considerable time later.

9-6
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Edition 1 November, 2002

15.7 ASSAY COMPOSITES


Prior to the creation of the grade model, the raw assays must be grouped into
Composite assays at a length that reflects the planned size of the selective mining unit. For
example, if the mining engineer is considering a pit with five-meter benches then the
composite length should be five meters.
Optimum selective mining unit often requires more detailed statistical analysis of the raw
assays. One method for evaluating dilution at various mining heights is to assign each raw
assay an indicator value of zero or one depending on whether the assay grade is below a
given cutoff (zero) or above the cutoff(one). The raw assays are then grouped into several
sets of composite, each set having a greater length. The average grade and the average
zero/one indicator are both determined for each composite. The average indicator value
then gives the percentage of the composite that is greater than the cutoff grade. The average
ore and waste percentage for all composites above the same cutoff grade provides a
measure of the internal dilution for those composites. Knowing the original amount of
cumulative grade-thickness contained in the raw assays above the same cutoff, the amount of
ore loss can also be determined for the composites. If the internal dilution is consistently high,
in excess of 40 to 50 percent, then the composite length could likely be reduced without much
additional ore loss. Detailed studies of this type are useful for determining a preliminary
selective mining unit. More rigorous SMU studies involve creation of a block model at a small
block size. Recoverable resource tonnage and grade for the smallest SMU model are then
compared to models that combine these smallest blocks into larger SMUs.
When the SMU and associated composite length have been determined, the raw assays are
then grouped to create the composite assays. Grouping can be broken at geologic
boundaries. It is usually preferable not to do this unless high resolution of geologic contacts
and the grade at contacts is required. When breaking composites by geology, most software
packages leave small composites usually at the bottom of the interval. This can create
problems, particularly if the grade concentrates at the geologic contacts. A preferred method
is to adjust the composite length slightly to fit a set of equal length composites exactly within
the geologic interval. For example, if the composite length is 5 meters and the geologic
interval is 12 meters, three 4-meter composites woiuld be created. This method is not
implemented in any software packages. In most cases, uniform-length downhole composites
are a good choice. Geologic codes can then be assigned based on the composite centroids
position in the geologic model
For determining composite grades, the raw assays should have the high grades capped to
some value determined either from cumulative frequency plots or from other methods. Some
of the other methods include decile analysis, straight percentile caps (95, 97, 99), conditional
simulation-based evaluation of metal loss due to capping, and evaluation of local grade
distributions to determine local grade caps. For whatever method used, the amount of
accumulated grade-thickness that is lost due to capping should be evaluated.
Statistics for the composites should be compiled using the appropriate geologic zones to
break them out. The frequency histogram should be constructed above some fairly low cutoff
(to eliminate zero and detection limit values). The histogram should be compared to one
similarly constructed for the raw assays. There central peak for each of the histograms should
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roughly coincide. Any drift of the peak indicates a bias at the composite stage, suggesting that
a smaller composite should be used. The smaller composite and block size will prevent the
composite bias from propagating to the grade model.

15.8 VARIOGRAMS
Probably the most useful tool to come out of geostatistics is the variogram. For the theory
behind variograms the reader is referred to any of the geostatistics references. For the
purposes of this volume, the basic components of the variogram are discussed. Variograms
measure the spatial continuity of a population of sample grades. The X-axis of a variogram
denotes lag or separation distance for sample pairs. The Y-axis of a variogram denotes
variance between the paired samples at a specific separation distance. As the lag distance
increases, the variance increases until it levels off at or near the statistical variance of the
entire grade population. This variance is also known as the sill of the variogram. The lag
distance where the variance reaches the sill is known as the range of the variogram. The
variance at a lag distance of zero is known as the nugget of the variogram. One
measurement of continuity based on the variogram is the nugget:sill ratio. The lower the
nugget:sill ratio the greater the local correlation or continuity. The range of the variogram
indicates the maximum distance at which samples have some spatial correlation.
Variograms should be calculated using the composite assays after capping the raw data.
One of the powers of the variogram is that it can be calculated at specific orientations. Multidirectional variograms should be calculated on an ongoing basis to identify and confirm
preferred orientation of the ore zones. By adjusting directional windows, variograms can be
calculated for planar features such as bedding and faults. Some of the mining software
permit calculation of downhole variograms which are useful for determining the nugget
variance. Variograms will usually show improved continuity parallel to the drilling. If this
direction is one of greater grade continuity, the drilling orientation should be changed. If not,
respecting this direction in grade estimates can cause oversmoothing of grades in the grade
model.
Many alternatives to the variogram have been developed. Two that are commonly used are
the correlogram (1 minus correlation) and the indicator variogram (variogram of zero-one
indicator value at a specific cutoff). The correlogram often gives cleaner results than the
variogram. The indicator variogram is useful for determining continuity of mineralization at a
certain cutoff.
While many models exist for variograms, nested spherical models are usually adequate for
modeling most variogram data. Most of the mining software packages contain programs for
variogram calculation and modeling. Alternatively, the variogram data can be plotted and
modeled in standard spreadsheet software. It is not uncommon for variograms to not level off
at the population variance but to continue to increase with increasing lag distance. Variogram
models should be restricted to the portion of the variogram at or below the sill.

15.9 GRADE MODEL

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The composite assays are used to assign grades to the model blocks contained in the
geologic model. The variogram provides guidance in determining the search distances to use
as well as the search orientation. Maximum search distances should be limited to distances
corresponding to 90 to 95 percent of the sill variance.
While the variograms can provide valuable input with regard to anisotropic search ellipses, it
is often necessary to apply search ellipses that respect the geologists interpretation of ore
geometry and continuity. Often tight structural controls are not discernible with variograms
but are observed in outcrop and in drill holes. If general orientations for these types of
controls are obtainable, tight anisotropic searches are appropriate even if they do not show up
in the variography. Other mineralization controls might also be applied based on geology
alone such as bedding plane control and mineralization in dikes or sills.
Often the drill spacing is such that searches as long as the variogram range include large
amounts of composite data. Using all this data in a block grade estimate would likely result in
grades that are much smoother than desired. Two solutions to this problem are suggested. 1)
The total number of samples should be limited as well as the total number of samples per drill
hole. 2) The blocks can be estimated using multiple estimation runs at increasing search
distances to restrict sample influence in early short-search-distance runs and extend the
sample influence in later runs. Both of these techniques serve to reduce the overall
smoothing of grades. Use of too many samples for resource model estimates is a common
problem. Model to mine reconciliations often show that the resource model predicts more
tonnage at a lower grade than is actually produced. Use of fewer samples per block in the
resource estimate is a good way to minimize that problem.

15.10 RESOURCE CLASSIFICATION


The final step in the resource modeling process is classification of the resource blocks as
measured, indicated, or inferred using criteria consistent with the jurisdiction in which the
resources and reserves will be disclosed.
It is difficult to establish uniform guidelines for applying the criteria of a given jurisdiction.
Barricks mines and development projects each use somewhat different methods to classify
resources and reserves. Because each mine has unique geological, mining, and metallurgical
characteristics, a uniform set of classification guidelines would end up being either too vague
or too complex to be useful or meaningful. The following are some general observations and
rules of thumb to assist in developing classification criteria.
Measured Resource
Here are some comments about measured/proven material:
A measured resource will receive no further sampling or delineation prior to mining. At the
mining stage, it will be re-classified as either proven ore or waste.
It is a commonly accepted rule that a proven reserve should have at least a 90 percent
success rate.
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With no mining experience, measured resources and proven reserves can be difficult to
define reliably. In underground mines, the industry-accepted practice is to consider the
material that is blocked out and ready for mining as measured. Also material that has been
sampled from drifts and raises developed in the mineralization is typically considered
measured. The measured material extends only a short distance from the development. This
distance is usually equivalent to the appropriate dimension of the selective mining unit.
In open-pit mines, measured resources are defined using various methods. If the
underground conventions were applied, material could be considered proven once it has been
drilled and sampled for blasting. The bench just below a blasthole-sampled bench might also
be considered measured. Within the indicated resource, the planned blast hole spacing could
also be used to define small measured blocks around the exploration drill holes. Experience
in open-pit mines usually shows these estimates of measured resources are conservative.
With mining experience, mine-model reconciliation can be used to establish or verify the
criteria used for defining measured/proven. The method is valid as long as reconciliation of
mine production to the resource model is acceptable, the mine measurements of grade and
tonnage are unbiased, and the mine production of metal reconciles well with final metal
production. If this is the case, the 90 percent rule (item two above) can be used to calibrate
the criteria used for classifying measured/proven. In an open pit mine, for example, the
values of individual resource model blocks can be compared to the actual values of the
blocks based on blast holes. If blast hole data confirm that at least 90 percent of the resource
ore blocks ended up actually being ore, then those blocks could be considered proven. The
comparison is done selecting blocks using very strict classification criteria (for example: short
distances to nearest drill holes). If the success rate is greater than 90 percent than the criteria
are relaxed until the success rate drops to 90 percent. Those relaxed criteria can than be
used for defining measured/proven material. The test usually involves several iterations,
either relaxing or restricting the classification criteria until a 90% success rate is found. An
example of this type of study is shown in Figure 1 where measured resources and proven
reserves in the example ore deposit should be within 20 meters of the nearest exploration drill
hole.
Care should be taken in applying this test. Resource model blocks that are originally waste
but end up being ore after production sampling cannot be used to increase the success rate
in the test. These blocks, while welcome, are still misclassified. Geologic variations should
also be respected in the comparison to avoid mixing well-behaved mineralization with poorly
behaved mineralization.
In nearly all cases, stockpile material is considered proven ore. This might not apply if
stockpile re-handling and mixing makes it necessary to re-sample the pile to predict grade
and mill recovery.
In underground operations, most measured resources that meet economic criteria
automatically become proven reserves and are mined fairly quickly. One exception is pillar
material. If no plan exists to mine this material it remains a measured resource only.
Indicated Resource
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In nearly all cases, an indicated resource requires one more sampling effort that converts it to
a measured resource prior to making an ore-waste decision during mining.
It is a commonly accepted rule that a probable reserve should have at least a 75 percent
success rate.
In defining indicated resources, a metal grade variogram or an ore-waste indicator variogram
is often used to establish indicated resource criteria. The sill of the variogram or the statistical
variance of the grade data is considered the maximum variance or sill variance. A range that
corresponds to 80-85% of the sill variance is taken from the variogram plot. That range then
defines the maximum separation distance between sampled drill holes and indicated resource
blocks. Examples of this method are shown in Figures 2 and 3.
Another method for designating measured resources involves using the sample data and
geologic information to define a continuous mineralized zone. In order to be used for
indicated resources, the zone must efficiently separate mineralized material from
unmineralized material. As a rule of thumb, the mineralized / unmineralized cutoff should be
10-20 percent below the ore-waste cutoff. If such a zone can be defined, and if the geometry
of the zone is not too complex, then continuity within the zone can be assumed the zone can
be considered an indicated resource. The maximum separation distance defined from the
variogram should also be used to confirm that most (> 95%) of the material within the
mineralized zone is also within the required distance to sampling.
As with the measured/proven categories, mining experience can be used to verify and adjust
the criteria that define indicated/probable material. Mine-model reconciliation is used as
discussed above to determine the classification criteria that identify material with a 75 percent
success rate. For the ore deposit shown in the example on Figure 1, indicated resource
blocks should be within 45 meters of an exploration composite.
In nearly all mines and projects, the bulk of the resource is indicated and the bulk of the
reserve is probable. The indicated/probable criteria therefore are the most important ones to
get right.
Inferred Resource
An inferred resource will require at least two more sampling efforts prior to development. The
first infill sampling will convert it to an indicated resource. The second will convert it to a
measured resource prior to making an ore-waste decision during mining.
It is a commonly accepted rule that inferred resources should have at least a 50 percent
success rate.
The second comment above is inconsistent with the CIM statement: it cannot be assumed
that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or
Measured Mineral Resource as a result of continued exploration. The CIM statement sets a
very low hurdle for inferred resources, one that is also inconsistent with other aspects of the
CIMs own resource definition. As mentioned above the CIM requires that all resources must
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have a reasonable prospect for economic extraction. Restated in terms of the CIM standard,
all resources must have a reasonable prospect for becoming a mineral reserve, which by
definition is at least an indicated resource.
The variogram can be used to establish a reasonable limit for search distances to create
inferred resources. Many companies use the total range of the variogram as the maximum
search distance. Often the variogram model approaches the sill at a low angle (see Figure 3).
This low-angle portion should be ignored to avoid search ranges that are unreasonably long.
A variogram value that corresponds to 90-95 percent of the sill variance is usually reasonable
as an upper limit for search ranges during resource modeling (Figures 2 and 3).
Calibration of the inferred resource criteria is usually not done during mining. It would be
useful to check these criteria with production data. This would require special models with
some of the exploration samples removed to create longer block-sample separation
distances.

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BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 10

METALLURGICAL DATA COLLECTION


AND
METALLURGICAL TESTWORK

Section 10 METALLURGICAL DATA COLLECTION AND


METALLURGICAL TESTWORK
10.1. INTRODUCTION ........................................................................................................... 10-1
10.1.1.
TERMINOLOGY ....................................................................................................... 10-2
10.2. COLLECTION OF METALLURGICAL DATA ............................................................... 10-4
10.2.1.
NEW OPERATIONS................................................................................................. 10-4
10.2.2.
EXISTING OPERATIONS ........................................................................................ 10-5
10.2.3.
METALLURGICAL SAMPLING ............................................................................... 10-6
10.3. METALLURGICAL TESTWORK ................................................................................... 10-7
10.3.1.
STEP 1 - DEFINITION OF PLANT FEED MATERIAL AND PRODUCT ................. 10-8
10.3.2.
STEP 2 - DETERMINATION OF PROCESSING METHODS .................................. 10-8
10.3.3.
STEP 3 - SELECTION OF KEY PROCESSES ........................................................ 10-9
10.3.4.
STEP 4 - LINKING OF KEY PROCESSES.............................................................. 10-9
10.3.5.
STEP 5 - DEFINITION OF KEY PROCESSING CHARACTERISTICS ................... 10-9
10.3.6.
STEP 6 - OPTIMIZATION OF KEY PROCESSES................................................... 10-9
10.4. PROCESSING METHODS........................................................................................... 10-11
10.4.1.
HEAP LEACHING .................................................................................................. 10-11
10.4.2.
CYANIDE MILLING ............................................................................................... 10-12
10.4.3.
GRAVITY CIRCUITS .............................................................................................. 10-13
10.4.4.
FLOTATION ........................................................................................................... 10-14
10.4.5.
PRE-OXIDATION ................................................................................................... 10-14
10.5. PROCESSING WASTE DISPOSAL METHODS ......................................................... 10-16
10.5.1.
CONVENTIONAL TAILINGS DISPOSAL .............................................................. 10-16
10.5.2.
ALTERNATIVE TAILINGS DISPOSAL METHODS............................................... 10-17
10.5.2.1. High Density or Thickened Tailings .................................................................. 10-17
10.5.2.2. Paste Tailings ................................................................................................... 10-17
10.5.3.
WASTE ROCK STORAGE .................................................................................... 10-18
10.6.

PROCESS OPERATING COSTS ................................................................................ 10-19

10.7.

REFERENCES ............................................................................................................. 10-20

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10.1. INTRODUCTION
Estimation of mineral reserves for a new project requires knowledge of the likely metallurgical
recoveries pertaining to the metals of interest contained in the various ore types in the
deposit. Although the inaccurate estimation of resources and reserves is arguably the major
reason for the failure or poor performance of newly developed projects, the lack of adequate
metallurgical testing prior to project development also can significantly contribute to poor
project performance. Unfortunately, this problem often occurs simply as a result of the failure
of project geologists and metallurgists to maintain communication between each other. A lack
of ongoing communication results in geologists (especially those in exploration) not being
familiar with metallurgical processing issues that may have little to do with ore grade.
However, just as important, poor communication can result in metallurgists who do not
understand the geologic and mineralogical characteristics of the deposit, and thus have
trouble designing an effective metallurgical testing program. For example, zones of silica
encapsulation of gold, high clay content, or highly variable sulphide content can significantly
affect metallurgical recovery and, if these zones are not identified, defined, and understood
prior to project flowsheet design and plant construction, plant performance can be severely
affected and the success of the project may be compromised.
The collection of metallurgical data should begin during the very early stages of exploration
drilling, or as soon as grades are encountered that indicate the presence of potentially
mineable mineralization. The results of this early metallurgical sampling and testwork can be
invaluable in preventing further exploration expenditures on a project or portion of a project
that is shown to have significant recovery issues, such as high sulphide content or silica
encapsulation of gold. These early-stage metallurgical samples must be representative of
the various ore types that are known to be present in the deposit, given the level of
understanding of the deposit at that point in time.

- Early collection of metallurgical data can help reduce exploration


expenditures The project geologists and metallurgists must stay in constant contact during the course of
exploration and delineation of the deposit, so that new geologic interpretations of ore types
can be considered from the standpoint of both metallurgical recovery and processing cost.
Once final recovery estimates have been developed, these should be communicated to the
individual responsible for reporting mineral resources and reserves for the project so that the
recovery data are applied appropriately during the estimation of resources and reserves.
At existing operations, the person responsible for reporting resources and reserves must
monitor actual processing plant recoveries and compare them with the recovery parameters
used for prior estimates. If reconciliations between the resource model and plant production
indicate that adjustments are necessary, these must be implemented prior to the next
reporting deadline. (See Section 15, PRODUCTION RECONCILIATIONS, of this reference
volume).

- Mine geologists should communicate with plant metallurgists


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Whether for a new project or at an existing operation, the person responsible for reporting ore
reserves should be familiar with the estimation of process operating costs. This ensures that
all appropriate costs are included in open pit floating cone or Lerchs-Grossmann simulations
and are reflected in both open pit and underground break-even cutoff calculations.

10.1.1.

TERMINOLOGY

The terms associated with metallurgical sampling, testing and the estimation of operating
costs are described below. Terms used specifically for gold have been included (for example,
the bottle roll test) but most are applicable to other metals:
Metallurgical Data - This broad term refers to any data that help define the metallurgical
characteristics of a deposit. It includes assays or analyses for recoverable metals, gangue
constituents (such as silica or carbonate), problem metals and clay minerals, estimates from
drill logs and geologic mapping of pyrite or other sulphide minerals, grinding indices and
hardness data from metallurgical testwork.
Metallurgical Sample - A sample collected for the purpose of performing metallurgical
testwork and analyses. These samples usually represent large blocks of material that fall
within a specified grade range or material type. Typically, initial metallurgical samples are
composites of smaller samples taken from drill core, RC drill cuttings, or underground channel
samples. Later-stage sampling includes bulk material from small surface sample pits,
underground workings, or large-scale multi-ton (tonne) samples for pilot plant test runs.
Bottle Roll Test - A preliminary test for gold cyanide extraction potential that involves placing
a metallurgical sample in a bottle with cyanide solution and rolling (agitating) the bottle for an
extended period of time. The solution is then decanted and analyzed for gold content.
Generally, the solids are washed free of solution and also assayed for gold content.

Bottle roll leach tests


Feeler Test - A series of scoping tests to determine whether gold is amenable to the
conventional extraction methods - gravity, flotation, or cyanide leach. A common technique is
to perform a diagnostic leach test, whereby the sample is leached with cyanide and various
acids in order to determine the refractory gold content.
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Column Test - An integral part of metallurgical testing for the amenability of precious metal
ores to heap leaching, column tests involve the placing of crushed or broken mine run
mineralized material into plastic pipes, or columns, of varying diameters and lengths and
subjecting the material to variable concentrations of cyanide solution at different application
rates.

Heap leach test columns


Flotation Test - A test to check the amenability of mineralized material to flotation recovery
methods. Flotation is a process that is commonly used to treat gold ores containing sulphide
minerals, where ground ore is mixed with reagents that cause the mineral particles to adhere
preferentially to air bubbles injected into the flotation cell. The bubbles rise to the top of the
float cells, overflow and proceed downstream in the process. The attached mineral grains are
then separated and become part of a mineral concentrate.

Flotation test
Bench-scale Test - Bench scale tests are those tests performed in the laboratory. These
include bottle rolls, grinding tests, flotation tests, gravity tests, pressure oxidation and roasting
tests.
Pilot Plant Test - Pilot plants are small-scale versions of the projected processing plant.
Pilot plant tests are designed to determine how the ore types behave under actual milling
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conditions. Typically, the pilot test will process bulk samples selected as representative of the
various ore types. The size of a bulk sample can range from several hundred tons (tonnes)
up to more than 10,000 tons (tonnes).

Pilot leach plant


Metallurgical Recovery - Metallurgical recovery is a critical factor in cutoff grade
calculations. Metallurgical recovery, expressed as a percentage, indicates the portion of the
contained ounces mined and sent to the mill that can be recovered through processing at a
specific crush or grind size. Recovery is typically dependent on the type of ore and, therefore,
may be variable across a given deposit. Metallurgical recovery estimates are based on test
work or pilot plant results, and on historical data if these are available. Typically, recovery is
dependent on the grade of the feed material and grade-recovery curves should be utilized
where available.
Process Operating Costs - All direct and indirect operating costs associated with processing
ore, typically expressed as a cost per ton (or tonne) of ore processed. See Section 10.6 for
examples and details.

10.2. COLLECTION OF METALLURGICAL DATA


10.2.1.

NEW OPERATIONS

The collection of metallurgical data for new or undeveloped operations begins early in the
exploration drilling stage of the project. As drilling takes place, the interpretation of the
metallurgical characteristics of the deposit should be developed simultaneously with the
interpretation of structural, lithologic, alteration and mineralogical zones. These initial
metallurgical interpretations are general in nature and, typically, are based primarily on grade
and/or the oxidation state of the in situ material (for example, oxidized, transition or mixed,
and primary (unoxidized) or sulphide).
The data that are ultimately needed for the refinement of metallurgical characteristics must be
collected at the same time that lithology, structure and other geologic features are logged.
There is a risk that core or RC cuttings may not be available for re-logging if needed in the
future since it is not unusual for whole (unsplit) core to be sent for assay, or for RC sample
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rejects to be discarded or inadvertently destroyed during the course of a project. (See


Section 6, SAMPLE PREPARATION AND ASSAYING, of this reference volume for further
information on retention of split core and RC samples for future reference, and on
communication with the assay laboratory regarding the disposal of sample material). Because
revision of metallurgical interpretations often relies on geologic data that were not previously
considered in detail, it is important that all data pertinent to the interpretation of metallurgical
characteristics be recorded as soon as possible after drilling.
The types of data collected in drill hole logging and geologic mapping that are required to
refine the interpretation of metallurgical zones in a deposit include:

Sulphide Content This is very important because metallurgical recovery can be


significantly affected by the amount of sulphides (especially pyrite) present in ore. The
metallurgical characteristics of oxide gold ores can be substantially different from
mixed or sulphide ores, where gold often is associated with pyrite or other sulphides.

Alteration Alteration products (particularly clays) can have adverse effects on


metallurgical recovery and/or processing costs. Abundant clay in oxide ores can
reduce percolation of leaching solutions in heaps and significantly affect recoveries.
Clays in sulphide ores can cause filtration problems in mill circuits that, in turn, can
result in lower than expected mill throughput and higher operating costs. Silicate
minerals that are products of alteration (such as sericite) can also cause filtration
problems that result in increased operating costs.

Silicification Silicification can significantly affect metallurgical recoveries where gold


is encapsulated in silica. Early recognition of this condition and its extent throughout a
deposit can greatly assist metallurgists in the planning of initial metallurgical test
programs.

Mineralogy In addition to clay and silicate minerals, accessory minerals can


adversely affect metallurgical recovery. For example, copper oxide minerals (such as
malachite and chrysocolla) and other copper minerals (including enargite and
chalcocite) are consumed by cyanide along with the precious metals in both heap
leach pads and mill leach circuits. This creates copper cyanogens (which can be a
significant health hazard) and raises cyanide consumption which, in turn, adversely
affects operating costs. Other minerals such as arsenopyrite, cinnabar, pyrrhotite and
graphitic carbon also introduce environmental and/or metallurgical concerns.

In summary, comprehensive logging and mapping of these data at the same time that other
geologic features are logged and mapped will save time and possible significant expense in
the later stages of a project.

- Early collection of metallurgical data can save significant expense and time in
the later stages of the project 10.2.2.

EXISTING OPERATIONS

At existing operations, the metallurgical characteristics of the ore usually are better
understood as a result of the operating experience gained. However, this understanding
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effectively is limited to ore already processed and the geologists expectations about the
metallurgical characteristics of the ore remaining to be mined.
Short-term changes in metallurgical recoveries that occur during the course of normal
operations should be investigated in order to determine if the fluctuation can be explained
geologically. Although such fluctuations are often ignored once recoveries return to normal,
sometimes it is the result of a different ore type that has gone through the plant unexpectedly.
The metallurgists and mine geologist should discuss any fluctuations in plant recovery and
pay close attention to ore feed both during and after they occur. Likewise, as new drilling
provides additional data that may affect recoveries, whether negatively or positively, the
geologist should update interpretations for remaining ore and communicate those changes to
the metallurgist as soon as possible.

- Daily communication should continue during project operation between plant


metallurgists and mine geologists 10.2.3.

METALLURGICAL SAMPLING

Although it is important that drill hole samples or channel samples taken to determine the
grade of the deposit are representative of the in situ material, metallurgical sampling,
similarly, must adequately represent the material that will eventually be mined and processed.

- Metallurgical tests are only as representative as the samples provided for


testing Because drilling is the most common method used initially to explore and evaluate deposits,
the first samples collected for early metallurgical testwork typically consist of diamond drill
core or RC cuttings rejects. In exploration diamond drill holes, where core is split prior to
sampling for assay, the core that remains often is the material used for initial metallurgical
samples. Where exploration drilling consists of RC holes, coarse rejects from the RC cuttings
samples sent for assay typically are used for metallurgical testwork. (See Section 6, SAMPLE
PREPARATION AND ASSAYING, of this reference volume).
Since drill core and RC samples generally are small in volume, these are usually combined,
according to predetermined ratios, in order to make composite samples which are then used
for initial metallurgical testing. It is at this point that the geologists, mining engineers, and
metallurgists must ensure that they work closely together to identify ore types that require
specific attention and to determine jointly the specific make-up of individual metallurgical
composites and to establish the reasonable extent of the deposit that should be included in
metallurgical testing. These metallurgical sample composites can be designed to represent
individual ore types or potentially problematic ore (such as material containing large amounts
of pyrite). The composites can also be designed specifically to test recoveries in high or lowgrade zones, or for hardness and grinding work index testing on strongly silicified material.
Once preliminary recoveries are determined for specific ore types, the focus of metallurgical
sampling then shifts to compiling composites consisting of a blend of material that best
represents the average characteristics of expected plant feed. Because initial metallurgical
sampling usually depletes the sample material available for additional test composites, larger-

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diameter core holes are often drilled specifically to provide material for the second round of
metallurgical testwork.
Depending on the metallurgical character and complexity of a given deposit and the results of
the first two rounds of testwork, metallurgical sampling is often then stepped up to provide
multi-ton (tonne) bulk samples for larger-scale metallurgical testwork. Typically the collection
of these larger samples focuses on providing material that closely approximates the grade
and character of the expected average mill feed. These bulk samples sometimes can be
collected from shallow surface pits, provided that the near-surface material in the deposit is
representative of the ore at depth. However, due to deposit complexity and/or near-surface
oxidation, underground workings are often driven specifically for the purpose of collecting bulk
samples for metallurgical testwork. These workings also provide valuable rock mechanical
and other data needed for mine engineering decisions (see Section 11, MINING DATA
COLLECTION AND SELECTION OF MINING METHOD, of this reference volume).
Finally, if uncertainties relative to metallurgical recoveries, reagent consumption, or
processing costs remain after bulk testwork, or if a novel flowsheet is required to treat the ore,
a pilot plant test may be warranted (see Section 10.1.1). Because pilot plant tests strive to
match actual production conditions as closely as possible, selection of the source(s) of
material for this type of test is critical. Determination of the source(s) should be a joint effort
between project geologists and metallurgists, aided by project mining engineers where
necessary.

10.3. METALLURGICAL TESTWORK


There are multiple steps in process development for an unknown ore. As with selecting
samples for metallurgical testing, key to the success of process selection is communication
between the geologist, mining engineer, and the metallurgist. The general stages of process
selection are listed below:
1. Identification of the feed material and the desired product, followed by definition of the
desired physical and chemical characteristics of the feed and product, with specific
emphasis on identification and quantification of problem constituents.
2. Determination of the types of processes that can handle the particular feed material
and produce the desired product(s).
3. Selection of the key process or processes from those identified in Step 2 that are
critical to achieving the desired result.
4. Linking of the key processes, each of which has its own characteristics and limits that
impose certain conditions on the physical and chemical properties of the feed
materials and plant output. The key processes must be made compatible and then
linked together.
5. Definition of the key processing characteristics in greater detail.
6. Continuation with testing and analysis as long as necessary until the feed material and
process characteristics are defined in sufficient detail to confidently predict tonnage
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rates, recovery and operating costs, along with the material characteristics of the
products and tailing. The objective is to ensure that the entire resource, including all
lithologies and alteration types, has been tested and that material representing the
range of grades in the deposit also has been tested. During the test program, samples
must include material that represents the dilution that will be introduced during mining
in an amount considered typical for the mining method proposed. Geotechnical issues
with respect to the stability of the hanging and footwall must be considered at this
stage also.
A typical example of this procedure for a gold ore is described in the following section.

10.3.1.

STEP 1 - DEFINITION OF PLANT FEED MATERIAL AND PRODUCT

Once the core has been logged by the geologist and sample assay data received from the
laboratory, the information is presented to the metallurgist. In addition to the assay data, the
geologist will provide information such as:

Comments on the mineral species present.

Whether visible gold is present.

A description of the host rock.

A note of the presence of any carbonaceous matter.

Comments on the grain sizes of the minerals.

The association of the valuable mineral with any of the other mineral species,
particularly sulphides, sulphates, and silicates.

Typically, gold ores are classified as free milling, refractory, or double refractory. A free milling
ore is one that responds to normal processing methods such as gravity, flotation or cyanide
leaching. A refractory ore does not respond to normal treatment methods because the gold is
either locked in sulphides or there is carbonaceous material present that acts as a preg
robber (i.e. material that competes with the activated carbon for the gold in the gold-bearing,
or pregnant solution). This type of ore requires a more complex treatment process,
including pretreatment or oxidation in order to liberate the gold or to destroy the preg robber.
The oxidation treatment can be pressure leach, bio leach or roasting.
The metallurgist will then conduct a series of scoping or feeler tests (see Section 10.1.1) to
determine whether the gold is amenable to the normal extraction methods (gravity, flotation,
or cyanide leach). A common method is to perform a diagnostic leach. The sample will be
leached with cyanide and various acids in order to determine the refractory gold content. In
addition to refractory issues, the search for other problematic constituents should be well
funded and thorough. Early detection of processing problems is critical.

10.3.2.

STEP 2 DETERMINATION OF PROCESSING METHODS

Given the results of Step 1 and input from the geologist, the metallurgist can then compare
this information to other operations that treat, or have treated, similar material in order to
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identify individual process stages that may be required for each of the process options under
consideration. At this point, it is important to know whether the ore source will be mined by
open pit, underground, or a combination of both, since the mining method will affect the
particle size of the process feed.

10.3.3.

STEP 3 SELECTION OF KEY PROCESSES

Based on work completed in Steps 1 and 2, the primary extraction method is identified. For
example, crushing, grinding and cyanide leaching may be identified as the primary extraction
processes.

10.3.4.

STEP 4 LINKING OF KEY PROCESSES

In Step 4, the decision is made about how to link each of the selected processes together.
These links are very much dependent on the characteristics of the material at each stage.

10.3.5.

STEP 5 DEFINITION OF KEY PROCESSING CHARACTERISTICS

This step focuses on defining the key processing characteristics in greater detail. Typically,
this involves development of the grade-recovery curve, determination of the sensitivity of
recovery to grind, determination of the crushing, grinding and abrasion indices, establishment
of the reagent addition rates, and the definition of process operating conditions.

10.3.6.

STEP 6 OPTIMIZATION OF KEY PROCESSES

In Stage 6 the selected key processes are optimized. Based on the previous tests, the
optimum conditions are established by repeating the tests under slightly different sets of
conditions. Several iterations of testing may be required. If a particularly difficult ore is
encountered, then intensive mineralogical work also is required. Samples of residues are
examined in order to determine the deportment of the gold-bearing minerals and to establish
the treatment required to unlock the gold.
Typical tests performed for leaching include bottle rolls and agitation leach tests. Samples of
ore are crushed or ground to a particular size and leached in cyanide, usually in the presence
of activated carbon, to extract gold and silver. Solution samples are taken at set time
intervals during the leach tests, without carbon, and assayed for gold content in order to
establish the kinetics or rates of reaction. Final metal recovery rates are based on the assay
of the head or feed material and the residue after leaching. See the illustration below.

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Other tests are run to determine the crushing, rod mill and ball mill work indices and the
abrasion index in order to determine the mill size and power required for crushing and
grinding. Other specific tests are conducted to establish breakage functions, if SAG or AG
milling is being considered.
Flotation bench-scale tests are run if the ore is primarily sulphide in nature. Flotation can be
used as a pre-concentration process where the sulphides collected are then subject to other
treatment, such as oxidation or additional grinding and leaching, or as a final concentrating
process where the concentrates are sold to a smelter and a credit is received for the precious
metal content. Typically, flotation tests are bench-scale at the scoping level and locked cycle
when establishing final concentrate grades and operating conditions. Gravity separation tests
are also run, particularly if the ores contain visible gold.
When the ores are low grade, the process selection tends toward low cost processing
technology such as heap leaching. Scoping tests are completed using bottle rolls at both
coarse and fine size fractions, small-diameter column tests, and large-diameter columns in
order to establish grade, recovery and crush size relationships. To gain confidence in the
data, crib tests or pilot heap tests also are performed.
Pilot tests are also run to confirm flowsheets developed from laboratory bench-scale work,
particularly when the metallurgy is complex and there are internal recirculating streams in the
process. Pilot tests are necessary because bench-scale tests cannot replicate the interactive
reactions of the recirculating streams.
For ore that is more refractory, specialized testing is required. For example, bioleaching,
pressure oxidation, roasting, and ultra-fine grinding (UFG) may be investigated. This work
can be performed on whole ores or on concentrates. Pressure oxidation can either be
performed in acid or alkaline environments, while roasting can be run in oxidizing or reducing
atmospheres.

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1000 kW UFG mill


Mineralogy is an important tool utilized by metallurgists in the flowsheet development process.
Mineralogical studies may use classical optical microscopy techniques, but increasing use is
made of sophisticated techniques such as scanning electron microscopy (SEM), energy
dispersive spectral analysis (EDS) and secondary ion mass spectrometry (SIMS). Because
ore samples contain relatively small amounts of the valuable mineral, various methods are
used. In order to assist in the determination of the association between the precious metal to
other metals or minerals, the samples are pre-concentrated by heavy media separation
techniques to make the metal more discernable. Another technique is to determine the
deportment of the gold in the residues after treatment in order to establish whether the
remaining gold is encapsulated in silica, is in solid solution with another mineral (such as
arsenopyrite or pyrite), or free but not recovered up to that point by the treatment method
used. In the latter case, the gold particles may have been too small to be recovered by gravity
or too large to leach due to insufficient retention time or insufficient reagent concentrations
during treatment. Adjustments can be made in repeat tests to address these conditions.
Other types of tests are also required, for example, to determine physical parameters such as
pulp viscosity, settling rates, filtering rates, oxygen uptake, pulp rheology, self heating, mass
flow characteristics and transportability.

10.4. PROCESSING METHODS


There are several methods available for gold extraction and recovery. Most procedures apply
one or more of the basic processes described below to recover gold from ore.

10.4.1

HEAP LEACHING

Heap leaching is a low cost treatment method that is usually applied to low grade ores. With
this process, an area (referred to as the leach pad) is prepared for treatment of the ore. A
pad is constructed by first creating an impervious soil layer then overlaying this soil with one
or two layers of plastic liner. The ore then is placed in lifts over the liner using trucks or
conveyor systems, and cyanide solution is applied to the ore mass, using either a spray or
drip system, for a predetermined period of time. The solution permeates through the mass

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and the pregnant (gold-bearing) solution is collected in a pond or within the pad itself. The
pregnant solution is transferred to a gold recovery plant where it is subject to carbon or Merrill
Crowe treatment to recover the precious metals. Cyanide and lime are then added to the
barren solution and it is returned to the leach pad.
There are several design variations within heap leaching operations. The two basic types are
valley fills and stacks. The valley fill leach pad is usually constructed where the natural
topography is used to define the base area of the pad. Ore is placed on the pad in layers,
and the pad gradually fills up the valley. With stacks, pads can either be on-off, where the
ore is placed on a pad, leached for its time cycle, rinsed and removed for final storage in a
waste area, or permanent, where ore is stacked permanently on a pad that increases in size
over time.

Heap leach liner

10.4.2

On-Off leach operation

CYANIDE MILLING

The cyanide milling process was developed in the late 1800s when it was found that gold
would go into solution when exposed to cyanide in the presence of oxygen. The early leach
technology utilized agitated tanks and airlifts to aerate the slurry. The pregnant solution was
then separated from the slurry by thickeners and filters, clarified and de-aerated. Zinc was
added to the clean de-aerated solution to precipitate the gold, silver and other metals. The
precipitate was collected in filter presses, then dried, retorted to remove mercury and, finally,
mixed with fluxes and smelted to produce dor. In this process, the barren solution is reused.
However, over time the barren solution becomes stale and a portion must be bled to tailings.

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Carbon-in-leach tanks
More recently, modifications to this method include exposing the cyanide leach solution to
activated carbon. Gold and other metals adsorb on the carbon, which is then separated from
the slurry by screening. The loaded carbon is stripped by a caustic cyanide solution and the
gold is recovered by electrowinning or zinc precipitation. Another variation is the carbon-inleach (CIL) process, where the gold is exposed to carbon at the same time that it is being
leached. This mitigates the effect of preg robbers in the solution, since the gold preferentially
adsorbs on the higher activity carbon. The loaded carbon is then stripped and the gold
recovered by electrowinning. The carbon is reactivated and recirculated to the adsorption
circuit.

10.4.3

GRAVITY CIRCUITS

Gravity separation was one of the first methods applied by man to recover gold. Gold has an
extremely high specific gravity (21) and, thus, can be separated easily from some of the
minerals that host gold (such as silica) by using gravity. Panning gravels from riverbeds to
recover alluvial gold was an early method of gold recovery using gravity. Sluice boxes and
blanket tables were also common. Over time, the technology improved and machines such
as jigs and centrifugal concentrators were developed to recover the metal. These methods
result in a concentrate from which the gold is extracted by tabling (see illustration below) or
via more stages of centrifugal concentration to produce a concentrate that can be direct
smelted.

Gold streak on shaking table

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In some cases, the gravity concentrate was amalgamated (that is, mixed with mercury to
produce a gold-silver amalgam), which could be retorted to remove the mercury and leave a
gold sponge for smelting into dor. Amalgamation processes were replaced in most
commercial plants by more sophisticated gravity separators and tables due to the
environmental hazards associated with mercury. However, artisanal miners in less developed
countries still commonly practice amalgamation. In these places, controls or restrictions on
mercury usage may be non-existent, or are simply ignored.

10.4.4

FLOTATION

Flotation is a process that is commonly used to treat gold ores containing sulphide minerals
(gold often is associated with pyrite, chalcopyrite and galena). The flotation process is used
to pre-concentrate the gold ore either for subsequent treatment or for sale to a smelter where
the concentrate is treated and the gold is paid for as a by-product credit.
With flotation, the ore first is ground then mixed with a reagent known as a collector. Air and
a frothing agent are introduced into the flotation cell. The collector wets the surface of the
sulphide mineral particles to make them preferentially adhere to the surface of an air bubble.
The air is dispersed to create fine bubbles to which the mineral particles attach themselves
and rise to the surface of the cell. As the bubbles rise, the gangue minerals and slimes drop
back into the cell and exit as tailing. The mineral-bearing froth is collected as concentrate.
Additional stages of flotation are added to scavenge more sulphide minerals from the tailing
stream and to increase the grade of the concentrate via cleaning stages.

Froth on flotation columns, KCGM

10.4.5

PRE-OXIDATION

Refractory ores require pretreatment to liberate gold that may be locked in sulphide or
associated with preg robbers. Common pretreatment processes utilized are roasting,
pressure leaching, and bacterial leaching.

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Roasting is a pyrometallurgical process where the ore is heated in the presence of air or
oxygen which oxidizes the sulphur and produces sulphur dioxide (SO2) gas and a calcine,
which can then be treated conventionally. Roasters are also used to treat preg-robbing ores.
Here the carbonaceous material is converted to carbon dioxide (CO2) gas and carbonates.
There are several types of roasters used, including fluid bed, recirculating bed, rabble
roasters and Dwight-Lloyd horizontal bed roasters. Reducing roasters are utilized where the
ore contains enargite which decomposes under reducing conditions to yield arsenic, sulphur
compounds and iron oxides. These products are then oxidized to complete the treatment
process.
In addition to the SO2, any arsenic or mercury present in the ore reports to the gas stream.
Early roasters discharged all gases into the atmosphere. Modern practice requires the gases
to be treated to meet stringent emissions standards and, as a result, arsenic and mercury
now are recovered as by-products. The SO2 is recovered as sulphuric acid or fixed as a
calcium sulphate (gypsum) and discharged to tailing.
Pressure leaching is a hydrometallurgical process where the raw ore or a concentrate is
heated and agitated in a pressure vessel called an autoclave at elevated temperature and
pressure to convert the sulphide minerals present to sulphates and to liberate the gold. In the
presence of iron, any arsenic present in the ore or concentrate is precipitated as a stable
compound, usually scorodite. The autoclave discharge is neutralized with lime and then
leached to recover the gold.
In bio-oxidation, bacteria are used to oxidize sulphide ores. The common bacteria,
Thiobacillus Ferro-oxidans will oxidize sulphides under controlled conditions to liberate the
recoverable metals. This essentially is a slow version of the hydrometallurgical, heap leach
process. The sulphates are neutralized and the oxidized ore is treated conventionally to
recover the gold. Bio-reactions can take place in stirred tanks, leach pads and also naturally
in tailing ponds or waste dumps where a by-product of the process may be acid drainage.

Concentrate roaster

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10.5. PROCESSING WASTE DISPOSAL METHODS


10.5.1.

CONVENTIONAL TAILINGS DISPOSAL

The waste product of milling operations is commonly referred to as tailing. The tailing consists
primarily of the ground gangue minerals from the ore, any diluting waste rock that was mined
with the ore and any chemical residues carried over from processing. In most gold mills, the
mass of tailing generated is approximately equal to the tonnes fed to the mill. Only in cases
where a concentrate is recovered and shipped to a separate location for treatment is there
any measurable reduction in the mass of tailing produced.
Tailings disposal is an integral part of any milling operation. Historically, tailings were
sometimes discharged indiscriminately into rivers, lakes and wetlands without concern over
the potential environmental impacts. Today, the importance of tailings management is
recognized in order to mitigate potential risks during operation and after closure.
Nowadays, all tailings system designs are subject to intense environmental reviews and, at a
minimum, must take into account the following parameters:

The volume of material to be stored.

The nature of the material to be stored (particularly if it is acid generating or toxic).

Detoxification of cyanide prior to discharge into the tailings pond.

Limits for metals and toxins in effluents from the tailings impoundments under
operating and closure conditions, with appropriate treatment to achieve discharge
limits.

Average precipitation and evaporation rates.

Storm events and possible diversions to reduce the amount of water entering the
tailing area.

The quality of reclaim water required.

Seismic risk.

Visual exposure (aesthetics).

Risks to migratory birds.

Downstream monitoring to detect leakage into the ground water.

The plan for closure and monitoring.

Tailings systems are designed to minimize environmental impacts during operation and after
closure. It is imperative that the tailing area functions as designed during mine operation and,
also, that it can be closed and remediated economically in order to minimize long term
environmental impacts and costs after mine operations cease.
The design and
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implementation of closure and remediation efforts are very dependent on the tailings contents
and the project location. For example, a potentially acid generating tailing system must be
closed in a manner that prevents the chemical reactions that generate acid. If acid generation
prevention is not possible, then perpetual monitoring and treatment of the effluent from the
tailing will be required.
Tailing disposal methods vary by location. Generally, most tailings are discharged as slurry
into a prepared containment area. Typically the containment consists of earth or rock wall
dams constructed to contain the tailing slurry within a designated area. Where possible, the
tailings dams are located in depressions or valleys to minimize the amount of dam
construction. Tailing containments are constructed with an impermeable liner made from
either compacted clays or plastic (PVC or HDPE) to limit the migration of solutions into the
ground water and/or through the dam walls. The dam walls are monitored for build up of
hydrostatic head, and have chimney and finger drains to prevent the buildup of hydraulic
pressure in the dams.
The tailings discharge is often detoxified prior to discharge into the tailings pond. The slurry
may be discharged either from the end of a pipe or spigotted along the dam walls. In either
case, the coarser particles settle first and beach near the discharge point, while the fines
typically settle in the centre of the pond. Excess water collects against the dam and, in most
cases, is reclaimed for process use.
10.5.2.

ALTERNATIVE TAILINGS DISPOSAL METHODS

To reduce the size of tailing containment areas and provide backfill material for underground
mines (if needed), mill tailings are cycloned to scalp the coarse fractions of the solids from the
tailing pulp. When used for underground backfill, the coarse fractions are either returned
hydraulically to the mine as-is, or mixed with a binder such as Portland cement and/or fly ash
and delivered hydraulically to mined out workings in order to provide strength and ground
stability in the mine. In this case, the tailings remain as a pulp and the pulp has a critical line
velocity, which must be achieved to prevent segregation in the pipeline. The proportion of the
tailings that can be utilized as fill is dependent on the size distribution of the tailing pulp.

10.5.2.1

High-Density or Thickened Tailings

Increasing the pulp density of the tailing slurry results in a thickened or high-density tailing.
Filters and specially designed thickeners are used to achieve the high densities. Critical line
velocities still must be maintained in transport, but the percent solids are now sufficiently high
that settling will be hindered if the flow is slowed or stopped. Solid/liquid separation occurs but
the solids do not segregate into sand and silt. Upon discharge, the solids separate quickly
and the supernatant (liquid portion) flows quickly off the stack. The settled solids do not
significantly segregate by size.
Typical applications of this approach are in place in the aluminum industry and at the
Falconbridge Kidd Creek metallurgical complex.

10.5.2.2

Paste Tailings

Increasing the pulp density further results in the formation of a paste. Paste has no free water
and exhibits no size segregation during pumping and discharge. Paste is pumped to its
destination as a slug via positive displacement pumps. As a result, the paste can be
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deposited in a relatively simple containment area, as the dam does not have to withstand
hydraulic forces. The deposited paste gains strength through desiccation and evaporation,
eventually resting in place as a stable, impervious mass. Because there is little or no
migration of pore water, the risk of acid generation and transport of metals is minimal. Also,
since there is no ponded water, the tailing area can be progressively reclaimed as soon as
the design height of deposition is reached. The paste tailing can also be mixed with a binder,
such as cement, and pumped underground for backfill.
Paste tailings offer many advantages over slurry deposition:

There is no retained water pond;


Dam construction is simpler as there is no hydraulic component in the design;
More water is recycled;
The mass is stable and will not be prone to a catastrophic failure;
There is less risk of acid generation.

Bulyanhulu is a classic example of true paste surface deposition of tailings. La Coipa also
practices paste deposition, but utilizes a belt conveyor rather than positive displacement
pumps to transport the paste to the storage area. It is generally believed in industry that
paste may be the preferred route for tailing deposition in the future.
10.5.3.

WASTE ROCK STORAGE

Mining activities almost always require that some sterile or non-mineral-bearing material must
be mined in order to access the ore. It is also a common occurrence that mineralized material
in which the metal content is too low to process economically must be mined in conjunction
with ore. These materials are usually mined and stored on surface. Generally, the
mineralized material is segregated from the sterile material to create waste dumps and lowgrade stockpiles. While there may be opportunities to use some waste rock as backfill in
underground mines to avoid the cost of bringing it to surface, or it may be possible to use
mined-out parts of an open pit as dump areas, the majority of waste generated by a mine
ultimately will be stored on the surface in waste dumps.

Waste and low grade stockpiles

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While historical waste sites nearly always were selected for their proximity to the mine in
order to reduce haulage costs, today waste dumps consist of specially prepared areas that
are built to contain the waste generated over the life of a mine.
For current mines, operating and closure plans are required for the dumps as part of the
environmental approval process, prior to receiving a permit to operate (see Section 13,
OPERATING/ENVIRONMENTAL PERMIT REQUIREMENTS, of this reference volume). Lift
height and compaction must be engineered in order to prevent catastrophic failure of the
dumps. To mitigate acid rock discharge (ARD), it is necessary to design and operate the
dump to limit the ingress of air and water to the rock mass. By managing the dump design
and operation, it is possible to reduce, and in some cases avoid, the need for perpetual
treatment of effluent.
Mine wastes are characterized prior to commencement of mining in order to determine the
long-term stability of the waste material. The key factors that must be established are the
acid generating potential of the waste and the availability of buffering material, such as
limestone or other carbonate rocks. If the wastes do not generate acids, then the dump
design is primarily driven by geotechnical constraints. The dump must be stable during mine
operation and a plan put in place to contour and revegetate the dump at closure. If the waste
material is acidic, then the design not only must meet geotechnical constraints but also must
mitigate the effects of acid generation. Under these circumstances, the dump would be likely
be situated in a catchment area where all runoff from the dump can be collected and treated
to meet local discharge standards.
The base of the dump must be prepared to minimize infiltration of runoff to groundwater.
Downstream monitoring wells are also required to test groundwater for indications of
infiltration. Depending on dump height, piezometers may be required to monitor stability of the
rock mass. Where possible, storm water would be diverted around the dump area to reduce
the amount of water subject to treatment. During operation, if particularly acid generating
material is identified, the waste may be encapsulated in clay within the dump to reduce the
quantity of acid generated. A buffering material may also be mixed with waste to limit acid
production.

10.6. PROCESS OPERATING COSTS


To be classified as ore, the revenue generated by the metal content of the material in situ
must be able to pay for the materials mining, processing, and refining, in addition to covering
its share of various indirect fixed costs (general and administrative costs, corporate overhead
distributions, accrued reclamation or environmental costs, and other fixed costs that may be
appropriate for a give operation or project.). The person responsible for reporting ore
reserves for a Barrick operation or project must be familiar with the general details that
comprise these cost categories. This is in order to ensure that no inappropriate costs are
included as operating costs (such as capital expenditures), and also to ensure that any and all
required costs are included. (See Section 12, CUTOFF GRADE DETERMINATION, of this
reference volume). Process operating costs consist of all fixed and variable plant operating
costs, typically expressed as a cost per ton (tonne) of ore processed. These costs include
operating labour and supplies (including any services), and maintenance labor and supplies.
Operating labour must include direct labour costs such as salary and wages, overtime
allowances, bonuses, and any indirect costs such as benefits, car allowances, and housing.

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For budget and reporting purposes, these elements are estimated by process area. Typically
the process includes crushing, grinding, gravity separation, oxidation, leaching, dewatering,
gold extraction (carbon or MerrillCrowe), refining on-site, transportation and sales, cyanide
destruction, tailing disposal, backfill, administration/supervision (including staff salaries,
training and professional development and any overheads), assay laboratory, technical
services (metallurgy, environmental and any external process support) and other services
(compressed air and water).
Major operating cost components include: labour, electric power, grinding media, mill liners,
reagents such as cyanide and lime, flotation reagents, flocculants, and other components
appropriate for a particular operation or project site. Maintenance costs are subdivided
between mechanical, electrical, and instrumentation, and include breakdowns for lubricants,
filters, V-belts, sheaves, motors, and maintenance service contracts. The distinction between
an operating material and a maintenance material is in the application of the material. For
example, if a component comes in direct contact with the ore then it is classified as an
operating supply, but if not, it is considered a maintenance cost. For example, a pump casing
is classified as an operating supply, while the motor and sheave and the barrel are
maintenance items. Although the definition varies between operations, what is important is
that all elements are defined and accounted for, and that the rules and definitions are
established up front and are known to everyone responsible for preparing and managing
budgets.

10.7. REFERENCES
Hayes, P. C., Process Selection in Extractive Metallurgy, Hayes Publishing Co., 1985.
G. Barbery, A.W. Fletcher, L. Sirios, Exploitation of Complex Sulphide Deposits-a review of
processing options from ore to metal., Symposium on Complex Sulphide Ores, IMM, Rome
1980
Mineral Processing Plant Design, Ed. A.L. Mular and R.B. Bhappu, SME-AIME, 2nd ed.
1980.

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BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 11

MINING DATA COLLECTION,


SELECTION OF MINING METHOD
AND
MINE PLANNING

Section 11 MINING DATA COLLECTION, SELECTION OF MINING


METHOD & MINE PLANNING
11.1.

INTRODUCTION ......................................................................................................... 11-1

11.2. COLLECTION OF MINING DATA .............................................................................. 11-2


11.2.1 EARLY STAGE PROJECTS OR PROJECTS
UNDER DEVELOPMENT .................................................................................. 11-2
11.2.1.1 Technical Data .................................................................................................. 11-3
11.2.1.2 Supplementary Data.......................................................................................... 11-6
11.2.2 EXISTING OPERATIONS ..................................................................................... 11-6
11.3. DETERMINATION OF MINING METHOD .................................................................. 11-7
11.3.1 DILUTION AND ORE LOSS .................................................................................. 11-8
11.3.1.1 Dilution .............................................................................................................. 11-8
11.3.1.2 Mining Recovery................................................................................................ 11-9
11.3.2 OPEN PIT MINING .............................................................................................. 11-10
11.3.3 UNDERGROUND MINING METHODS ............................................................... 11-13
11.3.4 OPEN PIT/UNDERGROUND TRADE-OFF ANALYSIS ...................................... 11-15
11.3.5 MINE SIZING ....................................................................................................... 11-15
11.4. MINE OPERATING COSTS ...................................................................................... 11-16
11.4.1 OPEN PIT OPERATING COSTS......................................................................... 11-17
11.4.2 UNDERGROUND MINE OPERATING COSTS................................................... 11-18
11.5

REFERENCES .......................................................................................................... 11-20

APPENDIX
Appendix 11-1

Data Interpretation, Rock Mass Classification and Design

Reference for Mineral Reserves and Resources

Section 11 Mining Data Collection, Selection of Mining Method & Mine Planning
Ver. 1 November, 2002

11.1. INTRODUCTION
This section of this reference volume is designed to give those Barrick personnel responsible
for stating mineral resources and reserves an overview of the mine planning process and the
resultant implications on resource estimation and management.
Mine planning and design tasks form a circle, as shown below, with each area relying on the
other for information. Using an open pit operating scenario as an example, pit limit analysis
represents the first of these tasks and identifies the potential pit and mineable resource limits
under a defined and simplified set of financial assumptions. To start the process, an initial set of
assumptions has to be made.

Initial mine, process and general parameters are assumed for purposes of open pit limit
analysis (or in the case of underground mines, stope limit analysis). Subsequently, these may
be refined as the circle is completed. This iterative process may be repeated several times and
be part of project development, from conceptual iterations to feasibility-level engineering.
Major emphasis is placed on the collection of geologic data during all stages of a project,
particularly in the early phases of exploration. However, collection of data that are useful for
early stages of conceptual mine layout and planning is often neglected until later in the project.
This can result in misconceptions about what mining method is most appropriate for the deposit
and which then can lead to crash programs to collect the data needed by mine development
engineers in order to make informed choices. Often these programs include additional drilling
at substantial cost, and result in project delays.
A significant portion of the data needed by mine development engineers can be collected as
part of a comprehensive and well designed geologic mapping, sampling and drill core logging
program. It is important for exploration geologists and mine development engineers to
communicate as early as possible in the life of a project, so that the geologists understand the

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types of data most useful to the engineers and steps can be taken for the timely collection of
these data.
Lastly, but far from least in importance, the Barrick person responsible for the reporting of
mineral resources and reserves for an undeveloped project or an existing operation must
understand what constitutes ore, which is defined as that portion of the resource base that can
meet break-even costs or be mined at a profit. This includes an understanding of the bases for
the capture and buildup of mine operating costs, and also the associated constraints (mining
losses and dilution).

11.2. COLLECTION OF MINING DATA


11.2.1. EARLY STAGE PROJECTS OR PROJECTS UNDER DEVELOPMENT
The mining industry uses a range of titles for the types of studies involved in the evaluation and
development of a mining project. These typically address the following project stages: a
conceptual or scoping study, a pre-feasibility study, the feasibility study itself, and finally, basic
engineering.
At a minimum, a scoping study should be carried out very early in the project life as a basis for
acquiring exploration areas or making a commitment for exploration funding. At this stage, the
investment risk may be relatively small but it is obviously undesirable to expend further funds on
a project that has no chance of being economic.
Lane (1988) describes the conceptual planning phase as the most critical phase of every new
mining development. He states that it should be based on good engineering and upon sound
economic principles, noting that: it is better to be roughly right than precisely wrong. The
conceptual planning phase is cyclical, and includes assessment of a range of plan alternatives
based on order of magnitude engineering assumptions.
The pre-feasibility study represents an intermediate step between the conceptual study and the
final feasibility study. It requires a higher level of testwork and engineering design. The four
principal reasons for carrying out pre-feasibility studies are as follows:

As a basis for committing to a major exploration program, following a successful


preliminary program.

To determine order of magnitude project size and mining and processing methods.

To attract a buyer to the project, to attract a joint venture partner, or as a basis for a
major underwriting to raise the required risk capital. A pre-feasibility study may also be
prepared in full or in part by potential purchasers as part of the due diligence process.

To provide justification for a timely Board-level decision for approval of the risk capital
required for certain tasks (such as to overcome seasonal restrictions to road
construction in remote areas) that must be completed before proceeding to a final
feasibility study.

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As stated previously, mining data for development projects should be collected throughout the
exploration stage. These data, which are required for mine engineering and planning, can be
divided into technical data and supplementary data categories.

11.2.1.1.

Technical Data

As noted above, collection of the technical data needed for engineering and mine planning of
an undeveloped deposit must begin in the early stages of exploration drilling. All too frequently,
early misconceptions about a deposit are carried forward into the development phase of a
project, resulting in additional and sometimes substantial expenditures for collection of data in
subsequent stages of the project.
The first drill holes that intersect potentially mineable mineralization can provide important early
indications of the geometry and distribution of grades in the deposit to the mine development
engineers who will eventually be assigned to the project. For example, if the first round of
exploration holes reveals consistent low gold grades in the range of 0.05oz/t to 0.10oz/t over
significant hole distances (+100ft or 30m), then open pit mining would appear to be a likely
option since such grades are unlikely to support an underground operation. If the same
exploration holes show abundant fractured ground associated with the mineralization or the
presence of groundwater, this indicates that the collection of geotechnical and hydrogeological
data will be extremely important throughout the course of the drilling and evaluation programs.
Similarly, if the mineralization is confined to very narrow but high grade structures, then
preliminary thinking may tend towards one of the selective open pit or underground mining
methods. Poor rock quality in drill core will again serve as a warning that geotechnical data
collection must be carefully planned and implemented.
As with the collection of metallurgical data (see Section 10, METALLURGICAL DATA
COLLECTION AND METALLURGICAL TESTWORK, of this reference volume), the importance
of early and frequent communication between the exploration geologists, development team
geologists, project engineers and mine planners cannot be overemphasized. In every project
there are decision points in the early stages when it must be determined if additional exploration
expenditures or further development work are warranted. The early analysis of deposit
geometry and potential mining conditions allows for the most efficient planning of development
drilling, geotechnical testing programs and other basic engineering studies required for
completion of initial scoping and pre-feasibility level studies.
For example, consider the case of a deposit where it appears that some form of underground
blast hole stoping could be the mining method of choice, based on the results of the first phase
of exploration drilling. At this point, engineers should begin to focus not only on potential
ground conditions in ore, but also on the quality of the host rock adjacent to the potential ore, in
order to assess dilution scenarios, maximum sizes of underground openings, potential mining
methods, productivities and mine operating costs. In addition, the geology and geotechnical
characteristics of the country rocks that both host and surround the deposit must be understood
as soon as possible. Early conceptual designs for shaft or decline placement, primary
development access and mine services (ore passes, vent raises) can be significantly enhanced
by having an understanding of the local host rock geology. Potential problem areas such as
major fault zones or formational units that would require major ground support can be identified
and avoided where possible.

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The types of mining data that should begin to be collected as early as possible during a project
consist principally of measurements of rock quality and stability. These are required in order to
deal with important issues affecting mine development and production, including:

Open pit slope angles and bench configurations.

Open pit blasthole penetration rates.

Ore and waste abrasion characteristics.

External dilution of open pit ore and associated preferred bench height selection.

Size limitations for underground openings (shafts and shaft stations, ramps,
development crosscuts and laterals, stopes, shops, et cetera).

Underground drift jumbo and down-the-hole (DTH) drill penetration rates.

Estimation of underground internal and external dilution and mining recovery.

Generally, the data required for mine engineering and development work are assembled and
recorded during the course of standard geologic logging. More detailed information about each
data type can be found in Section 5, GEOTECHNICAL AND GEOLOGICAL DATA
COLLECTION, of this reference volume. Care should be taken to ensure that proper recording
of these data takes place before the core is disturbed by sampling. It is not unusual for the
opportunity to collect these data to be lost because of technical manpower shortages during
exploration or, simply in the rush to get samples submitted for assay. When this happens,
additional costs (sometimes very substantial) and delays during subsequent scoping and prefeasibility level evaluations often are incurred.
Each Barrick operation or project site should have a site-specific list of the types of mine
engineering data required. If no site-specific guidelines are in place, it is recommended that the
following data are recorded. Similar descriptions of these data types are provided in Section
5.2.1.1. The data types are summarized below, along with comments on how these data
pertain to mine engineering issues.
Core and/or RC sample recovery - Poor core or RC cuttings recovery is generally a good
indication of potential ground problems in underground workings and possible high rates of ore
dilution with waste material. For RC holes, a qualitative determination of the amount of sample
returned to the cyclone (generally based on the weight of the sample collected at the rig),
compared to the amount of sample expected based on the diameter of the hole and the hole
interval drilled, can provide an estimate of sample recovery. Poor RC sample recovery
generally indicates the presence of voids, a cause for potential concern in both open pits and
underground mines. Excessive RC sample return usually indicates the presence of badly
fractured ground.
Structure orientation - When logging structural discontinuities present in oriented drill core, it
is possible to determine the true dip and dip direction of discontinuities from alpha () and beta
() angles (see Section 5, GEOTECHNICAL AND GEOLOGICAL DATA COLLECTION, of this

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reference volume). These data can be very helpful in determining maximum opening sizes in
underground mines and potential wedge failures in open pits.
Seepage - Evidence of water flow from structures, based on drilling shift reports. Reported
water flow can sometimes be correlated to individual structures based on the presence of vugs,
voids or other signs of dissolution. Seepage can be an important indicator to assist in early
estimation of de-watering requirements. Where applicable, data should be collected relative to
aquifer drawdown and recharge for determining potential impact of groundwater on mine
design.
Rock type - The early understanding of variations in rock types across a deposit are very
important for preliminary slope stability evaluations and bench configurations. For geotechnical
and development engineering purposes, it is often necessary for the geologists to combine rock
types into more general zones for the engineers.
Rock strength - A general description of rock strength is included in Section 5,
GEOTECHNICAL AND GEOLOGICAL DATA COLLECTION, of this reference volume. Rock
strength data are used to help determine open pit slope angles, the maximum allowable
opening size in underground stopes, penetration rates for production drills, and excavation
characteristics of the rock. The data are also used to determine production powder factors.
A powder factor is the amount of explosive agent required to break a particular rock type into a
desired fragment size range.
RC and/or diamond drill penetration rates - The penetration rates experienced by RC and
diamond drill rigs can give project engineers a general feel for drilling efficiencies that might be
expected in either open pit or underground operations. For open pits, these data are used to
establish productivity estimates for blast hole rigs in various ore and waste types, and which in
turn, provide meaningful estimates of direct drilling costs. For underground operations, drill
penetration rates provide the basis for productivity estimates for drift advance in ore and waste,
production drill productivity estimates in various ore types, and resulting estimates of direct
mining costs for development drifting in ore and waste and stope production drilling.
Ore and waste density - Early collection of samples for density determinations of mineralized
and unmineralized material is important. For more information on recommended sample
collection and density measurement methods, see Section 8, DENSITY DETERMINATION, of
this reference volume.
Other geotechnical data - The following geotechnical data types also are required for
determining maximum opening sizes in underground mines and potential wedge failures in
open pits. Because these data are routinely collected as part of geotechnical logging and
mapping, the basic definitions for these are included in Section 5, GEOTECHNICAL AND
GEOLOGICAL DATA COLLECTION.

Structure frequency.
RQD.
Structural block size.
Number of structural sets.
Structure spacing.
Filling.
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Structure true width.


Roughness.
Structure persistence.

11.2.1.2.

Supplementary Data

Supplementary data relating to mining include the following items:

Descriptions of existing and potential site access and local infrastructure.

Site ownership (mining rights, surface rights, access rights, water rights, agricultural
rights, national reserves, First Nation or other native or indigenous peoples rights).

The particular seismic zone where the mine is located and general information on past
seismic activity.

A general description of local climatic conditions (i.e. tropical, temperate, arid, highAndes, sub-arctic), when climatic extremes occur, and any other applicable climate data
that could affect mine design and equipment selection, such as temperature ranges and
the length and intensity of the rainy season.

Altitude data, which is necessary for determining whether engine de-rating is required
(for example, at altitudes in excess of 3,000m, engine de-rating may be appropriate).

In addition, a digital surface representation of site topography prior to mining should be


compiled. This digital surface can be based on drill hole collar elevation data, exploration
surveys, aerial surveys and/or topography, or a detailed land survey (see Section 9,
RESOURCE MODELING, of this reference volume). The date of the survey and its accuracy
and limitations should be stated.

11.2.2. EXISTING OPERATIONS


The types of mining data that are needed for estimation of ore reserves at existing operations
are the same as those required for assessment of an undeveloped deposit. While it is true that
radical changes to these parameters, generally, are not made once open pit slope angles and
bench configurations are established and production commences, the collection of data should
continue during the course of production at the same pre-development levels. Because
production experience sometimes requires adjustments to slope angles within individual pit
sectors or phases, there must be an up-to-date and comprehensive geotechnical database
maintained during the life of the project. This is especially important for extreme circumstances,
where slope movements warn of possible large-scale wedge failures. Keeping the database
current by timely entry of data generated by pit infill drilling, geologic mapping of benches, and
structural mapping of sectors can help prevent slope failures, as well as save valuable time
when failures do occur and production is halted.
The same holds true for underground operations. Although once the mine is developed the
options for radically changing the mining method are limited, the existence of a comprehensive,
up-to-date geotechnical database provides an invaluable resource for deciding when to change
sublevel spacing, alter blasthole patterns, or to make any other adjustments required to remedy
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unexpected high dilution, poor extraction, or other production issues. As with open pit
operations, the timely entry of new data from stope definition drilling and underground sublevel
and stope geologic mapping provides a valuable tool for addressing production problems.
Once production begins, the use of cavity monitor surveys (CMS) greatly enhances the mine
engineers ability to measure mining recovery and external dilution in stopes. These surveys
also help engineers and geologists to make meaningful reconciliations between resource model
predictions, mine production and mill production (see Section 15, PRODUCTION
RECONCILIATIONS, of this reference volume).
Where CMS data are not available,
conventional transit surveys must be used to the extent practicable.
Typical mine production data that should be collected in support of the ore reserve estimates at
existing operations includes:

Mine and plant production capacities for the previous year, the year following the
Statement of Ore Reserves, and the maximum capacities projected for the duration of
the life of mine planning period.

Production reconciliation data for at least the previous year (see Section 15,
PRODUCTION RECONCILIATIONS, of this reference volume).

A short description of historical and future mining methods (if changes to current
methods are anticipated).

Operating costs for the mine, processing and administrative departments, with specific
attention paid to consistency of reference units (for example, whether mining costs are
expressed consistently, per ton (tonne) or per metre (foot) of advance).

A statement of any stockpiled material remaining at the time of the Statement of Ore
Reserves, including the following information for each pile:

Location and accessibility.

Type (i.e. low-grade, refractory, autoclave, et cetera) and cutoff grades applied at
time of deposition on the stockpile.

Period of use (deposition and/or depletion).

Volumes (if surveyed), tonnage and associated grades, with descriptions of the
bases for estimates.

11.3. DETERMINATION OF MINING METHOD


In order to estimate mineral resources and reserves for a new project that is in the advanced
stages of exploration or is under development, the mining method(s) appropriate to the
geometry, grade, desired throughput rate and rock mechanical characteristics of a deposit must
be determined. Determination of the appropriate method(s) will rely heavily on the mining data
collected during drilling, delineation and primary development of the deposit.

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Selection of an appropriate mining method for a deposit often relies most heavily on the grade
and geometry of the mineralization. Large, shallow, low grade deposits are particularly
amenable to open pit mining, while extraction of deeper, higher grade mineralization typically
requires an underground method. However, for deposits where the choice of mining method is
not clear based on grade and geometry alone, other considerations come into play. These
include geotechnical issues (such as rock strength and RQD), environmental concerns
(underground operations may be more environmentally acceptable, depending on the deposit
location), manpower availability (skilled underground miners may not be readily available in
some remote locations), as well as issues that are purely economic, such as high import tariffs
on large equipment, royalties or government fees based on ore tons (tonnes) produced, or very
substantial employee wage burdens (which can approach 300% of base hourly or salary pay in
some countries).
It is not unusual for a gold deposit to be amendable to both open pit and underground mining
approaches. The bulk-tonnage, lower grade shallow portions of some deposits that are
attractive for open pit mining are often connected to a system of narrow, higher grade
mineralization feeder structures that can best be developed using one of several underground
methods. In these cases, it is important to ensure that the proper trade-off studies are
completed in order to determine the point at which mining should be transferred from an open
pit to an underground operation.
Similarly, the mining method(s) used at an existing operation must be appropriate to the
geometry, character, forecast throughput rate and grade, and geotechnical aspects of the
remaining reserves. Often, changes in the geometry and character of mineralization
encountered during the course of mining a deposit require a change in mining method. Such
changes can be made successfully only if the necessary geological and mining data are
available.

11.3.1. DILUTION AND ORE LOSS


Two major factors that affect the choice of mining method are the expected dilution and
estimated mining recovery. These parameters address dilution of ore with waste material and
ore loss at ore/waste contacts, and internal ore loss due to poor ground conditions that require
pillars to be left in place.
It is important that dilution and ore loss (i.e. mining recovery) factors are determined by the
mine or development geologists, mine planners and engineers responsible for equipment
selection and operation.

11.3.1.1.

Dilution

Mining dilution is that portion of mined material that is extracted in addition to the planned ore
grade material. Dilution can be further defined as:

Internal - Below cutoff grade material that must be taken internal to (within) the limits of
a stope block due to mining method constraints and geological conditions.

External - Material that is intentionally taken in order to allow for required minimum
mining widths (based on the selected mining unit, or SMU), and material unintentionally

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mined, such as backfill from adjacent cuts, and material that is external to the limits of
the stope block that must be taken without choice due to blasting overbreak.
Dilution is normally applied to the in situ resource as a width, thickness or volume, and is
typically expressed as a percentage. In lieu of a percentage, dilution tonnage and grade can
also be estimated using three dimensional grade models. Also, for undeveloped projects, any
available geotechnical data and planned opening sizes should be taken into account when
making preliminary dilution estimates. Underground resources and mineable reserves are
stated with the planned internal and external dilution included. Open pit reserves usually
incorporate internal dilution during the resource modeling phase as a function of the selection of
an appropriate SMU or block size. In cases where one or more narrow ore zones are
separated by waste blocks that are wider than the SMU, external dilution to allow for overdigging along the margins of the zones is sometimes included in reserve statements. All other
diluting material that is mined in excess of the plan is referred to as unplanned dilution.
Underground dilution varies as a function of mining method, orebody width and dip, and ground
conditions. For projects where no underground experience factors are available, preliminary
dilution estimates can be made using the following formulae, based on OHara:
Block Caving:
Cut and Fill:
Room and Pillar:
Shrinkage:
Long-hole with sublevels:

Dilution = 65 / ((width ^ 0.5) * sin (dip)) * RQF


Dilution = 22 / ((width ^ 0.5) * sin (dip)) *RQF
Dilution = 38 / ((width ^ 0.5)) * RQF
Dilution = 33 / ((width ^ 0.5) * sin (dip)) *RQF
Dilution = 55 / ((width ^ 0.5) * sin (dip)) * RQF

Where dilution is expressed as a percentage, width is in metres and RQF is a relative


rock quality factor (where 1.3 is poor and 0.70 is excellent)

The mining methods that are most amenable to controlling dilution are cut and fill stoping and
shrinkage stoping. When the more productive longhole stoping and sublevel caving methods
are used, control of dilution often is more difficult.

11.3.1.2.

Mining Recovery

Also referred to as mining extraction, mining recovery is based on the undiluted portion of the
reserve that is mined out of the total volume of ore grade material contained in the resource
base. Mining recovery is normally stated as a percentage, and is a function of ore body
geometry, ground conditions and mining method. Ore grade material that is not recovered
during mining is termed ore loss, of which there are two types:

The in situ ore material that is not mined due to smoothing of mining shapes (i.e. it is not
possible for stope shapes or dig boundaries to exactly match actual ore outlines).

The material that is left in place before abandonment of a mining area. This includes
broken ore unintentionally left in underground stopes due to frozen blasts or misfired
holes, and ore intentionally left for geotechnical reasons (bench step-outs in open pits or
underground pillars) or because of management decisions related to backfill scheduling.

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Mining recovery is not generally stated in the case of an open pit, since it is assumed that all
resource blocks contained within an optimized pit will be mined at the scale of the selective
mining unit.

11.3.2. OPEN PIT MINING


Open pit mining is a widely used method for extracting ore. It is also termed open cast or
open cut in some areas of the world, depending on the geometry of the deposit. The basic
method and its variations provide the lowest per-ton (tonne) operating cost, a high degree of
general selectivity (virtually all material within a pit is subject to ore/waste segregation, within
the constraints of loading equipment size) and the greatest degree of flexibility for quickly
increasing production. Variations on open pit mining depend on rock hardness, orebody
configuration and required ore extraction selectivity.
Once scoping and pre-feasibility studies determine that open pit mining is the most reasonable
extraction alternative, pit optimization studies can commence. Optimization studies take into
consideration different mining cost alternatives (contract mining versus owner mining), financial
options (i.e. maximization of gold production versus maximization of return on investment) and
by-product production scenarios (where applicable).
A number of methods can be used for pit optimization, including manual design/incremental
analysis (seldom used today), floating cone methods and Lerchs-Grossmann (including
Whittle) methods. It should be stressed that, since the determination of pit limits does not
contain mine design (i.e. ramps and roads), mine plans cannot be stated at this point, except for
use as a basis for conceptual scheduling within a scoping study.
The level of confidence of the material in the resource model must be considered within the
optimization process. Pit limit (i.e. optimum pit) analyses must use only Measured and
Indicated (M&I) resources. While Inferred resources are excluded from these analyses,
commonly these lower-confidence resources are included and reported within the subsequent
mine plan.
Open pit optimization is an iterative process, requiring a number of simulation runs before
arriving at an acceptable result. However, before optimization studies can begin, preliminary
parameters must be established for:

Metal prices - The Barrick corporate office will provide commodity prices for optimum
pit analyses. Care should be taken to ensure that the same metal prices are used in pit
limit design, cut-off calculation, royalty and NSR calculations.

Metallurgical recoveries - At a minimum, metallurgical recoveries should be


determined for major ore types (oxide, transitional and sulphide). Where recovery is
variable with grade, a grade/recovery formula should be developed for use in all
optimum pit analyses.

Preliminary operating costs - For purposes of pit limit design, an initial set of cost
assumptions is required. These assumptions should be as close as possible to projected
actual costs (or within sensitivity limits) and should include:

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Base mining costs by material type.


Incremental mining costs reflecting changes in bench elevation.
Base processing costs by material type.
Underground mining costs (where applicable).
Variable processing cost by material type (if applicable).
General and Administration (G&A) costs by material type.

Bench height - Bench height is determined as a function of:

Selectivity requirements and orebody geometry.


The safe digging height for the loading machine.
Relative drilling and blasting costs.

As a general rule, where not constrained by local ore geometry, the maximum bench
height applicable to the selected loading equipment should be used. However,
depending on the deposit, in selected areas a trade-off analysis of ore losses and/or
dilution realized with higher bench heights against higher mining costs (primarily drilling
and blasting) associated with lower bench heights, may be required. This analysis may
indicate that mining of flitches (split benches) less than a normal bench height may be
required in certain areas. If necessary, the quantity of material affected by this should
be identified in the resource model and appropriate (higher) mining costs assigned.

Pit slope angles - Prior to pit optimization simulations, preliminary pit slope angles must
be determined. Normally, these angles are established for the different sectors of a pit,
which allows flexibility for any different rock types and/or structural regimes present in
the deposit. Pit slope angles usually are determined by a third party geotechnical firm

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using geologic data provided by Barrick, or by a qualified in-house geotechnical


engineer.
Inter-ramp design angles should be defined by design sector, wall dip direction,
elevation and rock type (where applicable). Overall slope angles are determined from
the inter-ramp angles and the engineers estimation of ramp dimensions (related to truck
size) and number of ramps affecting the pit wall.

F
C1

C2

Example of Open Pit Sectors

Haul road design - This is a function of expected truck haulage capacities, dimensions
and traffic densities. Typically the design will also include a provision for a crest safety
berm, drainage ditch and area for wall slough. If tapering of berms is applied at ramp
intersections, the percentage of taper is important on the overall slope design. Gradients
of ramps (vertical to horizontal ratio, expressed as a percent) are typically 8-10%.

In addition to these parameters, if the deposit extends to depth where underground mining may
also be an option, a trade-off study between underground and open pit mining methods may be
required, depending on the value and configuration of in-situ resources (see Section 11.3.4
which follows). If underground mining is viable, its timing may impact the optimum final depth of
the open pit.
In order to examine the robustness of the mineable resource defined by the optimum pit, a
number of sensitivity analyses should be performed, including:

Variations in metal price (equivalent to recovery).

Variations in overall slope angle.

Variations in process costs.

Variations in mining costs.


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Exclusion of and inclusion of inferred resources (i.e. separate analyses using only
measured and indicated resources, and measured, indicated and inferred resources).

11.3.3. UNDERGROUND MINING METHODS


The underground mining methods available for consideration are many and varied. These
methods may be grouped according to various ore body characteristics, including size, dip, rock
competence and required mining selectivity.
Detailed descriptions of all available underground mining method options are beyond the scope
of this reference volume. In-depth descriptions can be found in the Society of Mining Engineers
(SME) Handbook (see Section 15.5, References). However, for the more common methods,
the following brief summaries are provided as a guideline:
Long-hole Stoping - A highly productive method that usually requires more extensive preproduction development compared to other methods.
Sublevels are developed at
predetermined vertical spacings, from which large diameter holes are then drilled up and/or
down to allow blasting and extraction of ore between the sublevels. Different variations of this
method include vertical crater retreat (VCR) and end slicing. Mining can be either longitudinal
(where cuts are aligned parallel to the hangingwall and footwall of the mineralization), or
transverse, where cuts are taken across the defined ore zone, normal to the hangingwall and
footwall. Longitudinal and transverse long-hole stoping methods can be implemented overhand
(i.e. mined from the bottom up, continuously working on top of fill material after the first cut), or
underhand (mined from the top down, continuously working under fill material after the first cut),
which is often used in deposits with below average ground conditions.
Cut and Fill Stoping - The most selective (and highest cost) of the underground mining
methods, cut and fill mining is typically used in deposits that are narrow, highly erratic with
respect to overall geometry, discontinuous along strike and dip, or some combination of these
features, and where control of dilution is critical. The method can be applied either overhand or
underhand, depending on ground conditions. Cut and fill methods also can be used to mine the
narrow high grade feeder zones, or the erratic fringe material in larger deposits. Fill material
can consist of unconsolidated backfill waste or uncemented mill tailings (overhand drift/cut and
fill only), cemented tailings/sand or high-density paste fill (overhand or underhand). Where
single production cuts cannot take the full ore width, this method is sometimes referred to as
drift and fill.
Shrinkage Stoping - This method is used to mine tabular, steeply dipping (60o to vertical)
deposits in competent ground. The method is not as selective overall as drift and fill or cut and
fill stoping, but productivity is higher. Although more extensive pre-production development
generally is required compared to cut and fill methods, no backfill is required. Control of dilution
is more difficult than with cut and fill methods, but is easier than long-hole stoping.
Room and Pillar - Room and pillar methods typically are used to mine flatter-dipping (less than
40) tabular deposits where ore thickness is proportionally much less than length and width
dimensions. Development drifts in ore are driven corresponding to pre-designed lateral
patterns and spacing. The unmined material left between the development drifts is then blasted
in slices (slabbed) into the drifts to create the rooms, leaving pillars of pre-determined size
behind to support the back (roof). Room and pillar methods typically have high productivities
because of the availability of multiple production faces during both development mining and
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production blasting. The downside to these methods is the lower mining recoveries that result
due to the pillars left for support.
Block Caving - Block caving is the single most productive underground mining method. Truly
a bulk method, block caving is designed to exploit large deposits that have broad lateral and
vertical extents that exceed 100m (300ft) in all dimensions. Although the least expensive in
terms of direct mining costs, block caving also requires extensive pre-production development,
including the installation of drawpoints on a regular and predetermined pattern and spacing,
and the development of a broad undercut level (required to induce caving) in ore at the bottom
of the ore block just above the draw level. Once caving begins, the method is completely nonselective. Dilution that occurs during caving is highly dependent on the geometry of the cave
block, ground conditions adjacent to the cave block and the management of the drawdown of
the cave.
In addition to the five most commonly used underground methods described above, a less
common method is sometimes used to mine wide, steeply dipping deposits. Sublevel caving
requires extensive development on sublevels in a systematic layout across the ore zone.
Generally, sublevels are driven at regular, pre-determined vertical spacings from footwall to
hangingwall in wider deposits. The pattern of sublevel development is mirrored between
sublevels, such that drifts on one sublevel are positioned directly over and under drifts on the
adjacent sublevels. Longhole rigs drill large diameter fan patterns (rings) of holes into the
defined ore block above each drift. Blasting begins on the uppermost sublevel at the hanging
wall and retreats toward the footwall along a straight front. The sublevel cave becomes filled
with broken muck and waste that has fallen from the walls. One ring is blasted at a time and is
mucked with an LHD according to an engineered bucket count, often 110% of the tonnes
blasted in the ring. Ore recovery and dilution are dependant on the many factors that influence
the gravity flow within the cave. However, recovery on the order of 80% and dilution around
30% is typical.
For underground mine planning, stope optimization (Floating Stope) programs are being
developed to determine underground resource limits in ways similar to open pit optimization
methods. An example is Datamines OreFinder which can best be described as a three
dimensional block compositor that analyzes the distribution of grades in a block model and
builds optimal envelopes of mineable reserves that are based on user-supplied criteria and
objectives such as:

Maximization of ore tonnes.


Maximization of stope head grade.
Maximization of contained metal in stopes.
Maximization of stope value.

The program generates the optimal stoping envelope for each set of criteria and reports the
mineable reserves.
As with open pit optimizers, stope optimization programs do not generate mineable resources,
and actual stope limits must be determined by detailed mine design and scheduling. The stope
optimizers are not yet widely used or proven in the underground mining industry and great care
must be taken with the results generated by these programs. However, it seems certain that
this technology will develop further and become a standard practice.

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11.3.4. OPEN PIT/UNDERGROUND TRADE-OFF ANALYSIS


As stated previously, gold deposits sometimes require that both open pit and underground
mining methods be used to exploit the resource most effectively. For example, where bulktonnage open pit mining is clearly the method required for the lower grade shallow portions of a
deposit, the deeper but narrow high grade feeder structures that are also present in the deposit
call for a selective underground method of ore extraction. In order to address these cases,
adequate analysis and planning (including open pit/underground trade-off studies) are essential
for mine sizing (see Section 11.3.5 which follows) before mill design and construction takes
place. Care should be taken to ensure that the lower portions of the deposit are adequately
defined by drilling prior to completing trade-off studies.
Dealing with the upper and lower extremities of the deposit is typically straightforward with
respect to the selection of the appropriate mining methods. However, the portion of the deposit
where the broader, low grade mineralization merges with the narrow high grade structures often
presents a challenge, and it is important to ensure that the proper trade-off studies are done to
determine the point at which open pit mining should be transferred to an underground
operation.
In more complex deposits, open pit versus underground trade-off studies are not simple
exercises. The complexity requires that studies focus on the overall return on investment from
the project. For example, it cannot simply be assumed that underground mining will commence
below the bottom of the optimum open pit shell since this approach may adversely affect the
overall return on investment for a project. The capital expenditures required for waste stripping
to mine the ore on the bottom benches of the optimum pit may exceed the capital investment
required to develop and mine the same ore from underground and also affect the approach to
mining the lowest levels of the open pit.
Trade-off studies should consider the different applicable mining costs, dilution and recoveries,
discount rates and whether mining is sequential or simultaneous. The latter is especially
important, since the mill capacity required to process the open pit ore is often substantially more
than the underground portion of the operation can reasonably supply.

11.3.5. MINE SIZING


Mine sizing is an iterative process that is a function of mineable reserves, mining and
processing methods, capital and operating costs, metal prices, metallurgical recoveries and the
discount rate used in discounted cash flow (DCF) analysis. While for any individual known
resource there is an optimal production rate that maximizes project net present value (NPV)
derived from DCF analysis, other factors commonly can affect mine sizing in a major way.
A number of rules of thumb can be applied to mine sizing analysis. These rules include:
1) Cash flow must be sufficient to pay capital costs at least twice.
2) Taylors Law, where:
Mine Production (Tonnes/Day) = 0.014(Reserve Tonnes)0.75

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3) Production is roughly equivalent to one-half ton (tonne) per day for every ton (tonne) of
reserves per vertical foot. For example, if the general spatial distribution of ore reserves
averages 2,000 tons (tonnes) per vertical foot, the mine should be able to produce 1,000
tons (tonnes) per day.
It should be noted that the last rule, as well as Taylors Law, are both somewhat outdated, since
the rates at which underground mines are deepened are typically less than 150 vertical feet per
year. However, these are preliminary guidelines rather than rigorous technical limits, as
demonstrated at Bulyanhulu, where sinking rates for all general workings (not just shaft sinking
or ramp access advance) exceed 300 vertical feet per year.
Generally, mine sizing is performed at the conceptual and pre-feasibility study stages of a
project, where a number of alternate mine and plant sizes and strategies can be rapidly
evaluated and an optimum can be selected based on multiple criteria. However, these
analyses sometimes suffer because of a lack of data pertaining to the deeper, narrower
portions of the deposit. As stated previously, care should be taken to ensure that the lower
portions of the deposit are adequately defined by drilling prior to completing mine sizing and
open pit/underground trade-off studies.

11.4. MINE OPERATING COSTS


The adequate forecasting and capture of mine operating costs is critical to the estimation of
mineable ore reserves. This section, which is not intended to be an exhaustive reference guide
for this subject, discusses the major components (commonly called cost centres or cost
categories) that comprise total mine operating costs. Its purpose is to provide an overview for
the Barrick person responsible for reporting ore reserves in order to ensure that all pertinent
mine operating costs are included in the unit (per ton or tonne) costs used in pit optimization,
design, or other open pit simulations, or in underground reserve estimation. While project and
operations mining engineers are clearly the most qualified to establish unit mine operating
costs, the final responsibility falls on the person reporting ore reserves to ensure that certain
costs have correctly compiled. Double counting or omission of costs can occur in areas where
cost items may logically be placed in more than one cost centre. For example, the cost of
certain technical services (particularly geology and environmental services) can be considered
to be either a mine operating cost, or a separate technical or management services cost.
Similarly, the costs for re-handling ore to feed the crusher can be carried either as a mine
operating cost or as a process operating cost. In both cases, care must be taken to ensure that
the project mine engineers and managers, plant managers and metallurgists, as well as
administrative management are estimating or reporting these costs in a consistent manner.
Mine operating cost centres are designed to consolidate costs into logical groups such as
labour, consumable materials (supplies), power, et cetera. Care must be taken to ensure that
each cost centre includes all appropriate non-capital costs. Capital costs (such as purchase of
new major equipment units or new computer systems) are captured in separate mine capital
accounts and cost centres, as are sustaining capital costs. Capital costs are not considered in
pit limit analyses, or in other open pit simulations, nor are they considered as part of
underground mine operating costs.
Depending on how and to what degree of detail mine management wishes to track mine
operating costs, labour and burden costs are often allocated to separate cost centres that
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capture all costs relative to a specific activity, such as waste stripping, haul road maintenance,
equipment maintenance, or mine dewatering. These allocations should not be of concern to the
Barrick person responsible for reporting ore reserves, except to cross-check with mine
engineers that all labour and burden costs have been considered.
For new projects with no operating history, operating costs typically are built up around a similar
cost centre system, based on first principles. Where possible, it is also helpful to benchmark
preliminary operating cost estimates against existing operations that have similar operating
conditions.
The following sections summarize typical mine operating cost centres for open pit and
underground operations.

11.4.1

OPEN PIT OPERATING COSTS

Basic open pit mining cost centres include the following:

Labour (salary and hourly).


Labour burden (medical insurance, FICA, et cetera).
Contract labour (where applicable).
Blasting agents (explosives).
Drill bits and steel.
Mining supplies and materials (also called consumables).
Mine maintenance supplies.
Mine dewatering.
Fuel.
Power.

Labour (salary and hourly) - Mine hourly labour costs are straightforward and typically include
maintenance labor for mine equipment. For mine salaried labour, care must be taken that
technical and environmental services and administrative management costs applicable to the
mine are accounted for, either in mine operating costs, technical services operating costs, or
administrative costs. Mine labour is often allocated to other cost centres, such as maintenance
and/or dewatering.
Labour burden - Labour burden includes country-mandated and managed retirement benefits
such as FICA (US Social Security), Medicare (or similar country-mandated medical plan),
Federal and State or Province unemployment taxes, benefits such as medical and dental
insurance, pension plan contributions, company-paid education, and other benefits unique to
the mine or project location, such as hazard or high-altitude pay, foreign service allowances,
etc. In the United States, Canada, and Australia, labour burden typically ranges from 25% to
60% of base salary. For projects located in countries other than the United States, Canada,
and Australia, care must be taken to include all applicable labour burden items, and there can
be many. In certain countries, labor burden costs can approach 300% of base salary or hourly
pay.
Contract labour - Where applicable, contract labour directly attributable to mine operations
should be included in mine operating costs.

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Explosives - Because explosives costs are high relative to other consumable materials, these
costs, typically, are segregated in a unique cost centre. Costs for Anfo, slurries, gels, primers,
boosters and other blasting agents are included. Where blasting is handled by an outside
contractor, care should be taken to segregate material costs from contract labour costs in order
to ensure that these are not double-counted.
Drill bits and steel As for explosives, the costs for drill bits and steel are high relative to other
consumable materials, so these costs are usually captured in a separate cost centre. Where
blast hole drilling is performed by an outside contractor, care should be taken to segregate
material costs from contract labour costs in order to ensure that these are not double-counted.
Mining supplies and materials (consumables) - This category includes costs for all other
supplies/materials required for mine operations.
Mine maintenance supplies - Mine maintenance supplies include replacement parts
(exclusive of major rebuild components), hand tools, lubricants, haul road dust control materials
and nuts and bolts items.
Mine dewatering - If major amounts of groundwater must be pumped to allow mining and/or if
drain holes are required to maintain stable pit slopes, the costs for mine dewatering are often
captured in a separate cost centre, with allocated labour and burden costs.
Fuel - Includes diesel for major equipment units and gasoline for fleet vehicles.
Power - Includes all costs for providing electricity to run mine equipment. Where separate
meters are not available to segregate mine power usage from the plant and other facilities,
power costs for mine operations are either allocated to mining costs based on usage estimates
or carried in a cost centre separate from mine operating costs.

11.4.2

UNDERGROUND MINE OPERATING COSTS

Typical underground mine operating cost centers are set up in the same manner as open pit
cost centers, but usually with more detailed divisions of labor and burden that avoid allocations:

Development labour (salary and hourly) and burden (medical insurance, FICA, et
cetera).

Production labour (salary and hourly) and burden.

Mine service (maintenance, dewatering, ventilation) labour (salary and hourly) and
burden.

Mine management and technical support labour (salary and hourly) and burden.

Contract labour (where applicable).

Explosives.

Drill bits and steel.


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Mining supplies and materials (also called consumables).

Maintenance supplies.

Mine dewatering.

Fuel.

Power.

Development labour (salary and hourly) and burden - Includes hourly and salary (if
applicable) labour costs for mine development headings (ramps, access crosscuts, sublevel
drifts), shop construction, cutouts, and haulage of waste from development workings. Labour
burden includes country-mandated and managed retirement benefits such as FICA (US Social
Security), Medicare (or similar country-mandated medical plan), Federal and State or Province
unemployment taxes, benefits such as medical and dental insurance, pension plan
contributions, company-paid education, and other benefits unique to the mine or project location
such as hazard or high-altitude pay, foreign service allowances, et cetera. In the United States,
Canada and Australia, labour burden ranges from 25% to 60% of base hourly pay or salary.
For projects located in countries other than the United States, Canada and Australia, care must
be taken to include all applicable labour burden items, and there can be many. In certain
countries, labour burden costs can approach 300% of base salary or hourly pay. Salary labour
and burden for mine supervisors (shift bosses and foremen) are sometimes captured separately
and allocated to mine development costs.
Production labour (salary and hourly) and burden - Includes hourly and salary (if applicable)
labour and burden costs for stoping and ore haulage. Burden costs are the same as described
above. Salaried labour and burden for mine supervisors (shift bosses and foremen) are
sometimes captured separately and allocated to mine production costs.
Mine service labor (salary and hourly) and burden - Includes hourly and salary (if
applicable) labour and burden costs for mine services such as maintenance, ventilation,
dewatering, certain types of ground support and, sometimes, hoisting. Burden costs are the
same as described above. Salary labour and burden for mine supervisors (shift bosses and
foremen) are sometimes captured separately and allocated to mine service costs.
Mine management and technical support labor (salary and hourly) and burden - Includes
salary labour and burden costs for mine management (mine manager, mine superintendent,
chief engineer and chief geologist) and staff mining engineers, geologists, surveyors, and
environmental engineers, where applicable. Labour and burden may also include costs
allocated from the laboratory for sample preparation and assaying, and other applicable hourly
labour and burden costs. Burden costs are the same as described above.
Contract Labour - Contract labour costs are those costs incurred by an outside contractor
hired to provide a specific service. Where applicable, contract labour should be included in the
appropriate mine operating costs centre (i.e. development, production, mine services, or mine
technical support). Contract labour costs should not be confused with incentive bonus
payments (sometimes called miners contract) made to development or production miners
employed by Barrick, which are typically included in development and/or production labour cost
centers.
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Explosives - Costs for ANFO, gels, traditional dynamite, primers, boosters, and any other
blasting agents used are included.
Drill bits and steel As for explosives, the costs for drill bits and steel are high relative to other
consumable materials, so these costs are usually captured in a separate cost centre. Where
underground mining is performed by an outside contractor, care should be taken to segregate
material costs from contract labour costs in order to ensure that these are not double counted.
Mining supplies and materials (consumables) - This category includes costs for all other
supplies/materials required for underground mine operations.
Mine maintenance supplies - Mine maintenance supplies include replacement parts
(exclusive of major rebuild components), hand tools, lubricants and nuts and bolts items.
Mine dewatering - If major amounts of groundwater must be pumped from either surface
dewatering wells or major underground pumping stations to allow underground development
and mining, the costs for mine dewatering are sometimes captured in a separate cost centre,
with allocated labour and burden costs.
Fuel - Includes all diesel used for underground equipment units and surface equipment units at
operations where surface haulage to the mill crusher is captured as part of mine operating
costs. Also includes gasoline for surface fleet vehicles, where applicable.
Power - Includes all costs for providing electricity to run mine equipment. Where separate
meters are not available to segregate mine power usage from the plant and other facilities,
power costs for mine operations are either allocated to mining costs based on usage estimates,
or carried in a cost centre separate from mine operating costs.

11.5. REFERENCES
LANE, K. 1988. Economic Definition of Ore. ISMN: 0900117516
OHARA, T.A. 1980. Quick guides to the evaluation of orebodies. CIM Bulletin, Feb. 1980.
HARTMAN, H.L. (Ed.). 1992, SME Mining Engineering Handbook.
Metallurgy, and Exploration, Inc.

Society of Mining,

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APPENDIX

APPENDIX 11-1
DATA INTERPRETATION, ROCK MASS CLASSIFICATION AND
DESIGN
The first step towards data interpretation involves final compilation of the field record. An
analysis of structural orientation data is a useful starting point. Stereographic plotting of
various orientation or dip and dip direction data points will allow rapid interpretation of the
number of joint sets and their relationships with one another. The frequency or density of
discontinuities within a particular set, and an average description of the physical nature of
these discontinuities can also provide fast and reliable information about the potential
influence of each set within the overall geomechanical environment. Both tasks are readily
undertaken from the field record without the need for extensive geotechnical experience.

STEREOGRAPHIC ANALYSIS
The program DIPS developed by the Rock Engineering Group at the University of Toronto,
Canada is perhaps the most effective and user-friendly tool for manipulating orientation data.
The input file allows direct input of and angles from oriented drill core, as well as dip and
dip direction from line mapping. A typical data file is shown on the following page. Detailed
stereographic analysis is possible using a menu driven format, however, reference to a
detailed description of the principles behind the analysis such as Priest (1985) may be
beneficial.
A second program, GEOTECH, distributed by Widenbar and Associates Pty Ltd of Perth
Western Australia, also allows plotting of stereographic projections, but without the advanced
analysis capability of DIPS. GEOTECH does have the advantage of allowing data to be
projected onto a plane such as a drill hole trace or a wall section in a real space relationship.
This ability may be useful in block size estimation. As with the DIPS program, either direct dip
and dip direction or and angles can be interpreted from the input file.

ROCK MASS CLASSIFICATION FOR UNDERGROUND DESIGN


A number of rock classification schemes have been devised for interpreting geotechnical data
to describe the rock mass. These have been collectively described in volumes by Hoek and
Brown (1980), Stillborg (1986) to name a few. The majority of classification schemes lead on
directly to design criteria for underground excavations. However, the principle of describing
the rock mass in consistent and reproducible terms applies in both the surface and
underground environment.

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An example of a DIPS data input file. Text included in data input lines, which is not read by
DIPS, is presented in italics. Comment lines are indicated with the symbol, *. The input text
that you will have to input for each problem is shown in bold type.
*Filename:
example.dip
* Project titles:
PROJECT IDENTIFICATION
DATA COLLECTOR, DATE
* Traverse identifiers:
* To turn off the traverse option, enter 0,
* or where traverse data have been identified,
* Enter a positive integer.
1 traverse (s)
* Traverse information:
1;LINEAR;120;30;LEVEL 3,Stope 3A sublevel 310
* Global data orientation type flag:
STRIKE/DIPR
* Magnetic declination is given next:
-5.5 degrees (east)
* In the next line, the number of extra data
* columns are indicated. If there are no extra data
* Columns, enter NO QUANTITY
QUANTITY
* If there are extra data columns, enter the number
* Next:
3 extra data columns
* The next line is the header for the data
* Columns, which follow:
Number

Strike
1
2
3
4
5
6
7
8
9
10

Dip(rt)
53
57
51
50
48
231
47
244
83
64

Quantity
86
83
84
82
83
86
82
87
84
86

By convention will
always be 180 if
recording and

Travers
1
1
1
1
1
2
2
1
1
1

Spacing
1
1
1
1
1
1
1
1
1
1

Type
2
1
1.5
2
3
0.5
1
0.3
0.75
1.5

Joint
Joint
Joint
Joint
Joint
Joint
Shear
Joint
Joint
Joint

Surface
Smooth
Smooth
Smooth
Sl.rough
Rough
Rough
Slickens
V.rough
Rough
Smooth

* The data must be completed with an END OF FILE


* Marker of -1
-1

The two most commonly used rock mass classification schemes are the Geomechanics
Classification or Rock Mass Rating (RMR) System devised by Bieniawski (1973) and the QSystem of Barton, Lein and Lunde (1974). Both these are described in appendix 2 which is
taken directly from Stillborg (1986). The Q-System is preferred for underground mining
situations, as the design output is more realistic in that environment. The RMR System was
designed specifically for civil engineering applications, and as such is somewhat
conservative. Subsequent modifications to the RMR System proposed by Laubscher and
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Taylor (1976) go some way towards addressing this deficiency. Both systems carry right
through to the design and ground support and reinforcement requirements of underground
excavations in the rock mass, based entirely on information that can either be measured or
directly induced from drill core logging or line mapping. At this stage though, experience on
the part of the geotechnical engineer is an essential component.

PRIORITIES FOR SLOPE ENGINEERING


In the underground environment where the surface area of an excavation is generally low and
the rock mass is essentially confined, the physical nature of the rock mass and the
discontinuities is the critical design parameter. Orientations of discontinuities and excavation
geometry are important, but not nearly so important as they are on the surface. In a typical
open pit excavation, the size of the excavation surface is large and the orientation of
discontinuities relative to each other and the excavation surface, together with the geometry
of the excavation is of prime concern. For this reason, detailed stereographic analysis of
orientation measurements using the tools discussed above is an essential first step in data
interpretation. Potential failure mechanisms will be highlighted by this work, and it must be
undertaken relative to each side of the proposed excavation. The nature of the discontinuities
is the next criteria to be established, and will indicate whether the potential failures highlighted
by the geometrical study are likely to occur reality. Particularly important are descriptions of
block size and strength and hydrological properties. This can be ascertained from the drilling
and line mapping record, and detailed descriptions of discontinuities within a particular
discontinuity set can be complied.
The nature of the intact rock is the final criteria for investigation, and estimates of rock
strength and degree of weathering are particularly important. These will be the tools that the
geotechnical engineer will use in excavation design to highlight potential failure mechanisms,
and calculate the slope angles, batter heights and berm width. Hoek and Bray (1981)
remains the best available reference on this subject.

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BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 12

CUTOFF GRADE
DETERMINATION

Section 12 CUTOFF GRADE DETERMINATION


12.1

INTRODUCTION ......................................................................................................... 12-1

12.2. DEFINITIONS .............................................................................................................. 12-1


12.2.1 BREAK-EVEN CUTOFF GRADE .......................................................................... 12-1
12.2.2. INCREMENTAL CUTOFF GRADE........................................................................ 12-2
12.2.3. MILL CUTOFF GRADE ......................................................................................... 12-2
12.2.4 NEXT BEST ORE CONCEPT ............................................................................. 12-3
12.3.

THE ROLE OF STOCKPILES..................................................................................... 12-3

12.4.

METALLURGICAL RECOVERY................................................................................. 12-3

12.5. CUTOFF GRADE CALCULATIONS........................................................................... 12-4


12.5.1 BREAK-EVEN CUTOFF GRADE CALCULATION ................................................ 12-4
12.5.2 INCREMENTAL CUTOFF GRADE CALCULATION.............................................. 12-5
12.5.3 MILL CUTOFF GRADE CALCULATION ............................................................... 12-6

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Section 12- Cutoff Grade Determination


Edition 1 November 2002

12.1. INTRODUCTION
Cutoff grades, which have been the subject of extensive debate over many years, can be
calculated to address many different operating scenarios. In an effort to provide consistency
between operations, Barrick has developed definitions for four distinct types of cutoff grades:

Break-even.
Incremental.
Mill.
Next Best Ore.

In practice, operations can have more than one break-even cutoff grade in order to take into
account different underground mining methods, different ore types, significant differences in
haulage distances and other factors. Different cutoff grades can be applied to differentiate
between break-even and incremental ores in order to facilitate blending for a constant mill
feed grade, or to segregate high grade material for separate processing through a gravity
circuit.

12.2. DEFINITIONS
In general terms, four different types of cutoff grade calculations or concepts are currently
implemented to varying degrees at all Barrick operations. The cutoff grades and concepts
described below apply across the full spectrum of reserve accounting, from summarizing
global resources for an exploration project to making daily production calls in an operating
mine.
The following definitions attempt to unify and clarify industry standard nomenclature within the
context of Barricks worldwide operations and development projects.

12.2.1.

BREAK-EVEN CUTOFF GRADE

Also referred to as a fully-costed or site cutoff, this calculation is used exclusive of other
cutoffs when there is no excess mining or milling capacity. For an underground operation, a
break-even cutoff must cover all fixed and variable costs (including mining, milling, general
and administration (G&A), gross royalties, transport and shipping costs, smelting and refining
costs, limits to payable metals and refining penalties for deleterious metals). However, in the
case of an open pit, all mining costs are accounted for during the optimization phase of open
pit mine planning. Once the optimum pit is defined, the mining cost should not be included in
the break-even cutoff calculation, since the operational decisions in routing ore versus waste
are made at the pit crest, after the mining cost has been incurred. In a practical sense,
therefore, the break-even cutoff grade in an open pit is equivalent to the incremental cutoff
grade (see Section 12.2.2, below).
A break-even cutoff calculation should not include sustaining capital (other than as noted
below), capital development, NSR or net profits royalties, or taxes, but it must cover total site
costs. Capital items or expenses deemed to be directly proportional to ore tonnage (tailings
dam or leach pad expansions, for example) should be fully accounted for in the calculation of
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Edition 1 November 2002

cutoff grade. The break-even cutoff grade may vary across a given site, depending on mining
method, metallurgy or royalties. If the mine capacity exceeds the mill capacity and the mine
has the ability to stockpile, then material at the break-even cutoff grade can be set aside for
later processing, provided that it can bear the additional cost of rehandling. In practice, all
operations utilize a break-even cutoff approach, although some also are able to take
advantage of incremental and/or mill cutoff grades, depending on any constraints to
throughput in either the mine or the mill.
If the mill consistently runs at capacity while processing underground ore which has grades at
or above the break-even cutoff, and the mine frequently encounters material between the
incremental cutoff grade and the break-even cutoff grade that must be left unmined, a
potential opportunity may be lost. When this occurs, the feasibility of increasing mine
production and expanding the mill should be considered.

12.2.2.

INCREMENTAL CUTOFF GRADE

An incremental cutoff grade can be applied if the mine or mill is not operating at capacity, or if
the concept of next best ore applies (see Section 12.2.4). At an underground operation,
incremental material must carry the direct underground mining costs, additional secondary
development costs (if more development is required in order to mine the incremental
material), incremental capital costs (tailings dam and/or leach pad expansions), and only the
variable portion of mine support costs, process operating costs, G&A costs and gross
royalties. If the mill is operating at capacity and the mine has the ability to provide material for
placement in stockpiles, then incremental grade material can be set aside for later
processing, provided it can additionally bear the fixed portion of processing and G&A costs,
as well as the costs associated with rehandling. When mining underground, material at the
incremental cutoff grade should never displace break-even cutoff grade material in mill feed.
In the case of an open pit, incremental grade ore must carry any incremental haulage costs
(i.e. any haulage costs over and above the cost required to haul the material to the
appropriate waste dump), incremental capital costs (tailings dam and/or leach pad
expansions), gross royalties, and only the variable portions of process operating costs and
G&A costs.
If the pit is capable of producing more incremental grade material than the mill can process
(which is common), then the incremental grade material can be placed in stockpiles, provided
that it can bear its portion of the cost of stockpile construction, maintenance and future
rehandling.

12.2.3.

MILL CUTOFF GRADE

As with an incremental cutoff grade, a mill cutoff grade is applied if the mine or mill are not at
capacity or if the concept of next best ore applies (see Section 12.2.4). A mill cutoff
considers low grade material, such as underground development muck, that must be broken
and removed from the mine. Such material must carry the portion of the variable costs
incurred above the shaft or decline collar, or beyond the crest of the pit. If the mill is operating
at capacity and the mine has the ability to provide material to stockpile, then incremental
grade material can be set aside for later processing, provided it can bear the additional cost of

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Edition 1 November 2002

rehandling. Mill cutoff grade material should never displace break-even cutoff grade material
as mill feed.

12.2.4.

NEXT BEST ORE CONCEPT

In daily practice, incremental cutoff and mill cutoff grade material compete directly with any
available material coming from either the open pit or from surface stockpiles. The material
having the highest net revenue of these three types should take precedence as mill feed.

12.3. THE ROLE OF STOCKPILES


Provided space is available, material is usually stockpiled when:
1) Mine ore output exceeds the mill capacity to process ore at break-even grade.
2) The mine is producing all available break-even ore, but the total amount of break-even
ore produced is less than the total ore producing capacity of the mine. At the same
time, if the mill is operating at capacity while processing all the available ore at or
above break-even grade that the mine can produce, then any incremental material
that the mine could produce, over and above its break-even ore capacity, could be
stockpiled. In line with the Next Best Ore concept discussed in the previous section,
the lowest grade or lowest net revenue material will be stockpiled.
In these cases, the material placed in stockpiles must be able to bear the additional costs of
stockpile construction and maintenance, and its rehandling. If any stockpiled material
remains unprocessed at the end of mining activities, this material must also bear the full
burden of the remaining site costs.
A potential third case is the stockpiling of mineralized material that is below the mill cutoff
grade in anticipation of an increase in metal prices and/or improvements in processing costs
or recoveries that could make the material economic at some point in the future. Stockpiles
containing material below the current mill cutoff grade should not be reported as reserves
because the material is not economic and, thus should not carry non-cash costs, including
depreciation and depletion.

12.4. METALLURGICAL RECOVERY


Metallurgical recovery is a critical variable in cutoff grade calculations. Metallurgical recovery,
expressed as a percentage, indicates the portion of the contained ounces or grams of metal
mined and sent to the mill, and that can be recovered through processing. Recovery is
typically dependent on the type of ore and may vary across a given site. Metallurgical
recovery estimates, as a basis for cutoff grade calculation, should be based on historical data
if available. If historical data do not exist, metallurgical recovery estimates are based on the
results of testwork or pilot plant processing studies. Typically, recovery is dependent on
grade, and grade-recovery curves should be utilized where available. More information on
metallurgical recovery can be found in Section 10, METALLURGICAL DATA COLLECTION
AND METALLURGICAL TESTWORK, of this reference volume.

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Section 12- Cutoff Grade Determination


Edition 1 November 2002

12.5. CUTOFF GRADE CALCULATIONS


While straightforward in concept, mistakes can occur when calculating cutoff grades, mostly
due to errors between the system of units used for each variable. For example:

The units used for the variables in the cutoff grade calculation must match those used
by the operation, whether Imperial or metric (i.e., troy ounces per ton, grams per
tonne).

Units of tonnage and volume used in the calculation for mining, milling, and G&A costs
must be the same as the tonnage units used at the operation, whether Imperial or
metric.

The currency portion of the mining, milling and G&A costs must be consistent with the
currency used to capture the costs for accounting purposes at the operation. This can
be an issue at remote project sites, where certain local costs (particularly labour and
some supplies) may be expressed in the currency of the country where the project is
located.

Refining and transportation costs are usually accounted for on a per-troy ounce basis
if the mine produces a dor product. These costs should be captured as a deduction
from the metal revenue portion of the cutoff formulae, in order to avoid confusion with
costs expressed on a per-tonne basis.

Gold and silver prices are typically expressed in United States dollars per troy ounce
(US$/oz). If the mine expresses grades on a gram per tonne basis, however, the
price(s) used in the calculation of cutoff grades must also be expressed in United
States dollars per gram US$/g. If costs are expressed in local currency, the metal
prices must be converted from dollars to local currency, at the exchange rates
provided by Barrick corporate management.

Cutoff grade equations can be kept simple, as shown in the following examples, where
several individual cost centres are combined to comprise total mining or milling costs.
Alternatively, the equations can be made quite complex, with individual variables included for
the different cost centres. Although more complex, such equations do have the advantage
that mistakes are easier to identify than when numerous cost centres are consolidated into
one composite unit cost variable.

12.5.1.

BREAK-EVEN CUTOFF GRADE CALCULATION

A break-even cutoff grade is the grade at which the revenue equals operating costs for all
ore mining and ore processing. It is important to stress that calculations of break-even cutoff
grades contain no profit assumptions (hence the break-even designation). Because breakeven cutoff grades are the basis for the estimation of mineral reserves, it is technically
possible (although highly unlikely) to have an ore reserve that generates no profit to the

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Section 12- Cutoff Grade Determination


Edition 1 November 2002

company, but still qualifies as an ore reserve by the definitions discussed in Section 1,
REPORTING CODES, of this reference volume.
The following is a simple example of the method used to calculate a break-even cutoff at an
underground mine expressed in troy ounces per short ton, assuming costs in United States
dollars per short ton (US$/st):
BREAK-EVEN CUTOFF GRADE (BCG) x REVENUE = OPERATING COSTS
or
BCG = OPERATING COSTS/REVENUE
Thus,
BCG =

Mining Costs + Process Costs + G&A Costs


Recovery x (Price - Refining Costs - Gross Royalties)

Where:
Mining Costs
Process Costs
G&A Costs
Refining Costs
Gross Royalties
Recovery
Price

= total mining costs (including secondary development)


= total process costs
= total general and administrative costs
= smelting, refining and transportation costs in $US/oz
= non-NSR or net profits royalties (if applicable) in $US/oz
= metallurgical recovery as a percentage
= gold price in $US/oz

For open pit operations, the break-even cutoff grade equation is equivalent to the incremental
cutoff calculation for the reasons discussed in Section 12.2.1.

12.5.2.

INCREMENTAL CUTOFF GRADE CALCULATION

For an underground operation, incremental ore must carry the direct mining costs, additional
secondary development costs (if additional development is required to mine the incremental
ore), any incremental process capital costs required to process the incremental ore (such as
tailings dam and/or leach pad expansions), non-NSR (gross) royalties, and only the variable
portion of mine support costs, process costs and (G&A) costs. The same holds true for
calculation of an open pit incremental cutoff grade, except that mining costs are not included,
as all material must be hauled to the crest of the pit regardless of whether it is ore or waste. If
flagged as incremental ore, the material incurs all downstream direct costs beyond the crest
of the pit, including incremental haulage costs if the distance to the crusher is greater than the
distance to the waste dump. From a practical standpoint, an open pit incremental cutoff
grade is equivalent to the break-even cutoff grade, as stated previously.
The following is an example of a simple underground incremental cutoff grade (ICG)
calculation expressed in troy ounces per short ton, assuming costs in dollars per short ton:

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ICG = Mining Costs + Variable Process Costs + Variable G&A Costs


Recovery x (Price - Refining Costs - Gross Royalties)
Where:
Mining Costs
Variable Process Costs
Variable G&A Costs
Refining Costs
Gross Royalties
Price

12.5.3.

= all direct mining costs+variable mine support costs.


= portion of processing costs attributable to incremental ore.
= portion of G&A costs attributable to incremental ore.
= refining and transportation costs in $US/oz.
= non-NSR royalties (if applicable) in US$/oz.
= gold price in US$/oz.

MILL CUTOFF GRADE CALCULATION

This cutoff grade is applied to material that must be broken and removed from the mine but
which does not meet either break-even or incremental cutoff grade criteria. In an
underground mine, it usually is comprised of material from development headings. In order to
qualify for milling, such material must be able to carry the portion of the variable costs
incurred beyond the shaft or decline collar or the crest of the pit. This material can be placed
in a surface stockpile if the mill is operating at capacity with material above the break-even
cutoff grade, provided that the material can bear the additional costs of rehandling.
The following is an example of a simple underground mill cutoff grade (MCG) calculation
expressed in troy ounces per short ton:
MCG = Variable Process Costs + Variable G&A Costs
Recovery x (Price - Refining - Gross Royalties)
Where:
Variable Process Costs
Variable G&A Costs
Refining Costs
Gross Royalties
Recovery
Price

= portion of process costs attributable to incremental ore


= portion of G&A costs attributable to incremental ore
= refining and transportation costs in US$/oz
= non-NSR royalties (if applicable) in US$/oz
= metallurgical recovery expressed as a percentage
= gold price in US$/oz

For an open pit operation, incremental ore cutoff and mill cutoff grades are the same.

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Section 12- Cutoff Grade Determination


Edition 1 November 2002

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 13

OPERATING/ENVIRONMENTAL
PERMIT REQUIREMENTS

Section 13 OPERATING/ENVIRONMENTAL PERMIT


REQUIREMENTS

THIS SECTION TO BE COMPLETED

Reference for Mineral Reserves and Resources

Section 13 Operating/Environmental Permit Requirements


Edition 1 November, 2002

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 14

FORMAT FOR MINERAL


RESERVE/RESOURCE REPORTS

Section 14 FORMAT FOR MINERAL RESERVE/RESOURCE


REPORTS

THIS SECTION TO BE PROVIDED IN


ELECTRONIC FORMAT

Reference for Mineral Reserves and Resources

Section 14 Format for Mineral Reserve/Resource Reports


Edition 1 November, 2002

BARRICK GOLD CORPORATION

REFERENCE FOR MINERAL


RESERVES AND RESOURCES

Section 15

PRODUCTION RECONCILIATIONS

Section 15 PRODUCTION RECONCILIATIONS


15.1

INTRODUCTION ................................................................................................ 15-1

15.2

DEFINITIONS ..................................................................................................... 15-2

15.3 RECONCILIATION METHODOLOGY ............................................................... 15-3


15.3.1 OPEN PIT RECONCILIATIONS ..................................................................... 15-4
15.3.1.1 Mine Versus Mill....................................................................................... 15-5
15.3.1.2 Resource Model Versus Mine .................................................................. 15-5
15.3.2 UNDERGROUND RECONCILIATIONS ......................................................... 15-5
15.3.2.1 Mine Versus Mill....................................................................................... 15-6
15.3.2.2 Resource Model Versus Mine .................................................................. 15-7
15.4

MINE CALL FACTORS...................................................................................... 15-9

15.5 RECONCILIATION TROUBLESHOOTING ....................................................... 15-9


15.5.1 MILL ................................................................................................................ 15-9
15.5.2 MINE ............................................................................................................. 15-11
15.5.3 RESOURCE MODEL.................................................................................... 15-11

Reference for Mineral Reserves and Resources

Section 15 Production Reconciliations


Edition 1 November, 2002

15.1 INTRODUCTION
Within the mining industry, the general term production reconciliation is applied in
different ways to describe comparisons made at operating mines between something that
is predicted and something that is produced. In practice, the variables being compared
vary from place to place.
For example, one operation may define production
reconciliation as the comparison between what the mine forecasts in the mine plan and
schedule and what the mill states that the mine delivered to the plant. Another may
consider production reconciliation to be what the mineral resource model predicted for
one or more areas of the mine and what the mine produced in terms of tons (or tonnes)
and grade from those areas, as estimated by the mine grade control department. Others
consider production reconciliation to be the comparison between the resource model
predictions (in terms of tons or tonnes and grade) and the tonnage and metal produced by
the mill.
Most production reconciliations, regardless of type, are not straightforward, and the
confidence of the tonnage and grade estimates of the various reconciliation components
varies widely. For example, resource model predictions of tonnage and grade are based
on various methods of interpolating assay data between sample points and applying those
grade interpolations to volumes defined by individual blocks in the resource model (see
Section 9, RESOURCE MODELING, of this reference volume). Expected waste dilution is
considered, and usually is based on mining experience or estimates derived from
operations using similar mining methods after making allowances for local ground
conditions. The resulting resource model is the basis for all mine plans, schedules and
production forecasts. The tonnage and grade of the local portions of the model that are
used for production reconciliations, generally, are based on a significantly smaller set of
samples than the mine and mill production estimates. Thus, from a purely statistical
standpoint, the confidence in the resource model tonnage and grade estimates is lower
than the mine and mill production estimates.
On the mining side, estimates of the tonnage of ore produced must rely on surveyed
volume calculations, truck counts, skip counts, belt weightometer data, or a combination of
two or more of these data types. Estimates of the grade of mined ore are based on
assays, whether from open pit blastholes, underground channel and/or grab sampling, belt
sampling, or some combination of these. These data typically are adjusted for external
waste dilution, which is based on estimates that are derived from surveyed volumes and
visual determinations. These methods provide ample opportunities for the introduction of
sampling error, lowering the level of quality of the production grade estimate.
Most mills are capable of providing measured (weighed) dry tonnage throughput totals for
a given period of time, usually based on a conveyer belt weigh-scale with adjustments for
moisture content. However, the grade of mill throughput may not be based on empirical
data from mill head sampling but, instead, may be back-calculated from the total metal
produced (refined) and other down-stream measurements, and from sampling the tails.
Metallurgical recoveries are estimated using the same procedure. Regardless of the
errors induced this way, the tonnage or grade estimates that define mill throughput or
actual metal produced for a given period become the standard against which mine
production and resource estimates are judged.

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In summary, production reconciliations are inexact comparisons using data that are often
suspect, sometimes incomplete, and typically carry different levels of confidence.
Nevertheless, these comparisons are key to the evaluation of the performance of major
components of the operation, and of the quality of the resource and ore reserve estimation
at Barricks operating mines.
The following sections provide descriptions and guidelines for setting up and performing
meaningful production reconciliations.

15.2 DEFINITIONS
The following definitions are appropriate to the subsequent discussion of production
reconciliations.
Sampled Mill Head Grade A sampled mill head grade is the grade of the mill
throughput that is based on physical samples taken from the mill feed stream. It is
superior to a back-calculated mill head grade provided that the samples are taken
correctly, sample sizes address the ore fragment size distribution at the point of sampling,
and the point of sampling is representative of the mill feed. The use of SAG mills and of
complex crushing circuits where portions of the ore stream are recirculated, both have
contributed to the general demise of the sampled mill head.
Back-Calculated Mill Head This is a common alternative to a sampled mill head. Daily
head grades are back-calculated, based on samples from the tailings stream, samples
from various points in the circuit (cyclone overflows et cetera), and calculated recoveries.
Belt Weightometer A device commonly used to weigh the material fed to a mill.
Normally positioned beneath the primary feed conveyor, the weightometer determines the
weight of the material on the conveyor belt as it passes over a series of sensors. Because
belt weightometers record wet tons (tonnes), allowances must be made for the moisture
content of the material weighed in order to determine the dry tonnage fed to the mill.
Dry Tons (Tonnes) There is no moisture component in volumes reported in dry tons
(tonnes). The tonnages estimated during resource modeling are in situ dry tons, based on
in situ density factors (see Section 8, DENSITY DETERMINATION, of this reference
volume). All measurements of tonnage made during production activities are made on a
wet basis and a factor for moisture must be applied to the measurement in order to
convert it to dry tons (tonnes).
Truck Factor For trucks that do not have load cells installed to allow tabulation of wet
tonnage hauled on a load-by-load basis, a calculated truck factor that represents the
average load (tonnage) carried by a surface or underground haul truck is used. The ore
tonnage shipped to the mill is determined by tallying the total number of trucks sent to the
crusher or to stockpiles and multiplying the total(s) by the calculated truck factor. Care
should be taken when using mine tonnage estimates that are based on truck factors for
production reconciliations, since there are several sources of potential error: For example:

If more than one size of surface or underground trucks is used, the truck factors
should be check in order to ensure that they have been applied correctly to the
count for trucks of each size.

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The truck factors may include moisture or be based on dry weight. Either is
acceptable, but care must be taken that moisture factors are not improperly applied
later.

Truck factors are based on the assumption that, although some loads will be
heavier or lighter than normal, the variances will even out over a reasonable period
of time. In general, this assumption holds true, but truck factors can be skewed
when a new or replacement loader/shovel operator loads the trucks differently than
the other operators.

Skip Factor A calculated factor that represents the average load (tonnage) capacity of a
skip in a shaft. The tonnage hoisted is determined by tallying the total number of skips
hoisted and multiplying that total by the skip factor.
As Mined The total mine production (tonnage and grade) as determined by mine grade
control procedures or other methods used by mine departments.
Declared Ore Mined This term is used at some Barrick operations to refer to the
tonnage and grade shipped to the mill by the mine, as determined by the mill. As such, it
is the production figure against which the as mined production (as estimated by mine
grade control procedures) is compared.
Mine Call Factor (MCF) A factor applied to mine production data in order to achieve
acceptable reconciliations between mine and mill production. In practice, an MCF is
applied to as mined production estimates either as a tonnage factor, a grade factor, or
both. MCFs are more common in certain areas of the world (such as South Africa) than
others and are used as a result of the inability of an operation to determine the reasons for
mine to mill tonnage and/or grade discrepancies.

15.3 RECONCILIATION METHODOLOGY


At Barrick operations, a production reconciliation is considered to be the comparison
between the tonnage and grade of that portion of the resource model used for the mine
plan, schedule and production forecast, versus the tonnage and grade reported by the mill
for a given period of time. The production reconciliation is broken into two major
components:

As Mined versus Milled (Declared Ore Mined).

Resource Model versus As Mined.

Reconciliations should be completed in the order above. Because the mill production
numbers are considered the true tonnage and grade milled for the period in question, the
mine production should first be reconciled to the mill, then the resource model to the mine.
Several key criteria must be considered when performing open pit and underground
production reconciliations:

Reconcile tons (tonnes) before grade. If significant disparities exist between the
tonnage of ore reported as received by the mill and the tonnage that the mine
believes was sent, a meaningful reconciliation of grade is hardly possible.
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The longer the time period of the reconciliation, the less susceptible the
reconciliation is to short-term variability due to local production issues, grade
shortfalls or windfalls, or variations in the mine plan and schedule. Although
operation reporting requirements demand monthly reconciliations in almost all
Barrick operations, quarterly and annual reconciliations allow more meaningful
assessment of the performance of an operation.

The flow of material through stockpiles creates a major issue for reconciliations,
due to the difficulties in tracking the tonnage and grade into and out of the stockpile
during the period covered by the reconciliation. While the tonnage and grade of
the material entering the stockpile sometimes can be tracked reasonably well (as
in the case of open pit operations, where truck dispatch and grade control data can
be used to account for trucks dumping into the stockpile), material flowing out of
the pile is usually tracked only by truck or loading unit bucket count. The material
leaving the stockpile is seldom sampled. As a result, the grade of a dynamic pile is
carried as an average for the total pile, and this average is adjusted as new
material of known grade enters the pile. Material exiting the stockpile is assigned
the average grade of the pile at that point in time. Although this approach
generally will not badly skew longer-term reconciliations, it can introduce significant
errors into shorter-term comparisons.

Unless different companies are involved, mills that receive ore from more than one
operating mine often have no provision for properly tracking the specific tonnage
and grade from each operation. When this occurs (and several Barrick operations
have this issue), tonnage and grade are usually allocated back to the individual
operations using formulae based on whatever data are available. These situations
can make production reconciliations at the individual mines somewhat
meaningless, particularly when one of the operations mines significantly higher
average grades compared to the others.

The use of mine call factors (adjustment factors applied to mine or mill tonnage
and grade totals in order match mine and mill production) should be avoided if at
all possible (see Section 15.4). The continued use of a call factor at an operation
is proof that one ore more chronic measurement errors are present in the tracking
of tonnage and grade. The cause of such errors should be pursued diligently, as
these errors adversely affect the ability of the mine to apply cutoffs correctly in
order to make necessary ore-waste decisions.

15.3.1

OPEN PIT RECONCILIATIONS

Because open pit operations generally have better control and knowledge of the flow of
ore from the mine, open pit reconciliations generally are more straightforward than
reconciliations involving underground operations. Actual haul truck destinations can be
tracked visually or with GPS-based dispatch systems, and except for material that flows
through stockpiles, open pit ore almost always proceeds directly from the bench face to
the mill crusher. Tonnage mined and hauled from the bench face is based on data
generated by load cells on each truck or on truck factors that are periodically adjusted
based on surveyed volumes mined. The grade assigned to the ore shipped to the mill
during a given shift is normally based on pit grade control department estimates that are
derived from blasthole sampling.

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Ver. 1 November, 2002

15.3.1.1

Mine Versus Mill

The following points should be kept in mind when making open pit mine versus mill
reconciliations:

Mill operations management usually reports mill ore production as dry tons
(tonnes). Care must be taken to ensure that mine production tonnages also are
compiled as dry tons. Unless ore moisture is highly variable, moisture can be
accounted for using a factor. The same moisture factor should be used by the
mine and mill for reporting tonnages;

For monthly reconciliations, surge piles at the crusher pad can be ignored, unless
for some reason an unusually large amount of material is in the pile at the end of a
given month;

If there is a negative disparity between the average monthly grade estimated by


the mine and the grade reported received by the mill, the problem may be due to
excess external dilution at the bench face. This can occur when mining fringe
areas of a deposit, or when loading units are switched for maintenance or other
reasons.

At operations where open pit ore and underground ore both feed a common mill,
reconciliations can be difficult due to the wide disparity between the grades fed to
the mill from the individual mines. This is particularly true if the mill is not set up to
sample the mill feed streams individually. Reconciliation difficulties at these
operations often are compounded because of low grade material from the open pit
that flows through stockpiles (see Section 12, CUTOFF GRADE
DETERMINATION, for a discussion of incremental ore cutoffs and mill ore cutoffs).

15.3.1.2

Resource Model Versus Mine

The reconciliations between the resource model and the mine are not as straightforward
as mine versus mill comparisons, due to the fact that mining does not always occur
exactly in the places predicted by the resource model. Ore expected on a certain bench
may not be encountered until the bench below, or it may be more erratically distributed
than forecast, which often results in more tons (tonnes) mined than forecast, but usually at
a lower grade. Or the presence of old underground workings on a bench can contribute to
variances in both positive and negative ways. Any of these occurrences can radically
skew monthly reconciliations. For example, at KCMGs Fimiston operation in Australia,
reconciliations over twelve-month and nine-month periods can be reasonably close, but
bench-by-bench comparisons can show variances that exceed 200 percent.
When performing model versus mine reconciliations, care must be taken to try and match
the areas where ore is produced on a bench with the position of the ore on the bench as
predicted by the model. Keeping track of model performance in this manner can provide
early warning for potential problems that could persist for several benches and thus
adversely affect the ore schedule beyond the current month.

15.3.2

UNDERGROUND RECONCILIATIONS

Production reconciliations at underground operations generally are more complex and


difficult than reconciliations for open pit operations. For example, in open pit operations,
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Section 15 Production Reconciliations


Ver. 1 November, 2002

almost all ore usually reaches the mill shortly after it is drilled, sampled, and blasted. In
contrast, underground ore generally takes a much more indirect path from the point of
drilling, sampling and blasting to the mill. It is not unusual for underground ore to be
handled several times, and depending on the mining method and the layout of the mine,
the length of time required for ore to reach the mill can range from hours to weeks, or
where very large blasthole stopes are in place, even months.
Comparisons between resource model estimates and actual mining are also more
complex. In an open pit, the ore may not be found exactly where the resource model
predicted it would be on a given bench. However, because all of the material on the
bench is eventually drilled, sampled, blasted, and hauled, all material is subject to
ore/waste classification. Ore may be found in lesser or greater quantities on the bench, or
at a different grade than predicted, but it nevertheless will be mined and shipped to the
mill. But in underground operations, access restrictions sometimes severely limit the
mines ability to easily or routinely locate ore that is not found where predicted.
The following sections provide a summary of the procedures required for effective
production reconciliations at underground mines.

15.3.2.1

Mine Versus Mill

As discussed above, the delay in ore reaching the mill once it has been drilled, sampled,
and broken makes the reconciliation of production between the mine and mill less than
straightforward. This delay is due mainly to ore residence times in stopes, ore cycling
through ore passes or transfer raises, muck bays, and underground and surface
stockpiles. Because of these delays, it is often difficult to determine the origin of the ore
actually passing through the mill during a given period of time. The lack of a tie back to in
situ production sampling sometimes makes grade estimation of the mill throughput
problematic.
Reconciliation of mine production with the mill should follow these steps:
1) Reconcile the estimate of tons (tonnes) produced from the mine with the
tonnage reported through the mill for the period in question.
Ore tonnage mined underground should be determined using CMS data, where
access to stopes is available. Where CMS data are not available due to survey
crew backlog (which generally occurs at the end of the last month in a quarter) or
other reasons, truck/LHD count data can be used. In all cases, individual stope
and development heading tonnages should be tracked, preferably on a daily basis.
Stope tonnages should then subsequently be determined by CMS, which allows for
calibration of truck/LHD factors.
2) Reconcile the grade produced from the mine with the grade reported through
the mill for the period in question.
Grades are reconciled by compiling the sample data routinely collected by the
geologists or sampling technicians as part of ongoing grade control/grade
monitoring procedures. Such sample data can consist of assays from chip or
channel sampling of the face and back, muck pile grab sampling, truck or loader
bucket grab sampling, belt sampling, or other valid sampling of the ore produced.
These data should then be weighted by the CMS tonnes, and the weighted
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average grade compared to the grade reported produced by the mill for the
quarter. Where CMS is not used to estimate in situ tonnage mined, other data that
are systematically collected will suffice (such as tonnage computed from
conventional transit surveying of mined volumes).

15.3.2.2

Resource Model Versus Mine

When reconciling resource model predictions with open pit mine production, local (bench
by bench) comparisons are fairly straightforward due to the fact that all material on each
bench is mined and classified. If the actual position of the ore is different than predicted, it
still can be found and recovered, as long as the shift in position does not result in the ore
falling outside of the limits of the optimum pit.
In contrast, underground reconciliations are made difficult when ore is not found in the
location or shape that was predicted by the resource model. Because an underground
operation does not have the luxury of sorting through all of the material in the spatial
vicinity of the stope(s), it is often difficult to determine the reason for an apparent ore
shortfall when not all predicted ore is found. Similarly, it is sometimes difficult to determine
if any ore found over and above predictions is due to a local overestimation in the model
or if it represents new ore that was not modeled because it was not defined by drilling. It
should be noted that this also happens in open pits, but rarely is any effort made to
distinguish unmodeled ore from predicted ore, unless an apparent ore windfall persists for
more than one or two benches.
Reconciliations between the resource model and actual mine production must follow the
same two basic steps that are done for mine versus mill reconciliations:
1) Reconcile the estimate of tons (tonnes) produced from the mine with the
tonnage predicted by the resource model for the period in question.
Ore tonnage mined underground should be determined using CMS data, where
access to stopes is available. Where access is not available for collection of CMS
survey data, or where CMS data are not available due to survey crew backlog
(which generally occurs at the end of the last month in a quarter) or for other
reasons, truck count or loading unit (LHD bucket count) data can be used. Where
possible, individual stope tonnages should be tracked, along with development
heading tonnages.
Comparisons of tonnage mined with tonnage predicted by the model are often
skewed by mine operations departing from the production mine plan and schedule.
These departures are sometimes beyond the control of the mine operators bad
ground in a particular area, or failure of a stope to meet forecast predictions can
cause necessary shifts in the production plan and schedule. In other cases, the
departure from the plan is sometimes due to the mine operators shifting production
to higher-grade stopes in an effort to meet production forecast goals. Whatever
the reasons, departures from the mine plan and schedule can make direct
comparisons between tonnage predicted by the resource model and the tonnage
mined for a given period impossible, without first determining where production
occurred in the mine on a stope-by-stope basis. Stope-by-stope comparisons of
diluted tonnages are essential for determining how the resource model is
performing in local areas.

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2) Reconcile the grade produced from the mine with the grade predicted by the
resource model for the period in question.
As described in Section 15.3.2.1, as mined grades are determined by compiling
the sample data routinely collected by the geologists or sampling technicians as
part of ongoing grade control/grade monitoring procedures. These data should
then be compared to the grades predicted by the resource model for the mined
volumes. The mined volumes are best determined by using CMS data to construct
three-dimensional shapes that represent individual workings (stopes, sublevels,
raises) where mining has taken place. The collection of CMS data is essential for
the reconciliation mine production against the tonnage predicted by the fully diluted
reserve model. If CMS methods are not in use, conventional underground transit
survey data must be used to the extent practicable.
In order to compare the as-mined grades with the grades predicted by the resource
model, it is essential to first determine where mining took place on a stope-bystope basis during the period covered by the reconciliation. If the as-mined
position and shapes of stopes compare closely to the geometry of the preproduction ore shapes predicted by the resource model, then the CMS outlines can
be used to cut the resource model and the modeled grades contained within the
CMS outlines then can be compared directly to the sampled grades. It is important
to note that if the CMS outlines do not compare well with the ore outlines predicted
by the resource model, then a simple comparison of modeled grades and sampled
grades within the CMS outlines can result in badly skewed reconciliations.
When the CMS outlines and the modeled ore outlines do not compare well
spatially, judgment is required on the part of the geologists to determine what
blocks in the model should be used as a basis for the predicted grade mined.
Often, this process consists of nothing more than determining that the same
relative tonnage of ore predicted by the resource model was indeed mined, only it
was found in a different position than projected by the model. However, when the
differences are more complex than a simple shift between the predicted position of
ore and the actual location where it was found, determining what portion of the
resource model was mined can be very difficult.
Unfortunately, when this problem occurs, the common solution is to simply
compare the tonnage and grade reported as mined during the reconciliation period
with the tonnage and grade predicted by the resource model-based mine plan and
schedule for the same period. While this gross approach to reconciliation
sometimes gives acceptable results (that is, the overall forecast tonnage and grade
compares reasonably well with the as mined tonnage and grade), it can ignore the
mining of ore not predicted by the model, hide external dilution and mining
recovery problems, and mask serious issues relative to the resource model, which
include:

The inability of the model to predict the position and geometry of ore sufficiently
for adequate mine planning and scheduling.

Poor local grade estimation.

Apparent remnant ore that can inflate reserve totals if not critically evaluated
and purged from the reserves where appropriate.
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Any remnant blocks that are above cutoff but are situated reasonably close outside
of the CMS shape must be deleted from future resource/reserve statements,
unless it is clear that these remnants are truly present in sufficient quantity and
grade to pay for their separate extraction (including any development required to
access these remnants).

15.4 MINE CALL FACTORS


As stated previously, a mine call factor (MCF) is used when an operation cannot (or
chooses not to) determine the reason or reasons for chronic discrepancies between the
mines estimates of the tonnage and/or grade shipped to the mill and the tonnage and
grade of ore throughput reported as received and processed by the mill. Although the use
of MCFs has occurred at all types of operations, these factors are most commonly applied
at underground operations that either have many producing areas (stopes) or use mining
methods such as block caving, or some of the variations of long hole stoping that are not
conducive to rigorous ore control sampling or tonnage estimation techniques. For
example, in the South African gold mines, the use of MCFs is a very common and
accepted traditional practice that sometimes receives little attention or concern on the part
of company management.
Regardless of local custom, the continued use of MCFs at an operation indicates that one
or more chronic measurement errors are present in the tracking of tonnage and grade in
the mine and/or mill. The cause of such errors should be pursued diligently, as these
errors adversely affect the ability of the mine to correctly assess its performance in many
critical areas. The following section discusses areas to evaluate as possible sources for
these errors.

15.5 RECONCILIATION TROUBLESHOOTING


In practice, the search for explanations to reconciliation discrepancies typically focuses on
the resource model or the mine. If resource model/mine reconciliations are negative (that
is, the model predicts more tonnage or higher-grade ore than the mine extracts), the
model comes under close scrutiny. Similarly, when the mill reports it received less
tonnage or grade than the mine believes it sent, the validity of the mine production data is
viewed as suspect due to the general belief that plant throughput estimates are more
reliable because mill production figures are based on a much greater volume of available
data. As a result, MCFs (see Section 15.4) are sometimes employed to bring the mill and
mine production figures into line.
The following sections address all of the areas that should be examined closely when
reconciliations are not acceptable.

15.5.1

MILL

While resource model estimates and mine production data are reasonable sources of
reconciliation errors, there are many points downstream of the model and mine where
biased data may be generated that could significantly impact production reconciliations.
These include:

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Belt Weightometers Belt weightometer error can significantly skew production


reconciliations. Weightometers require periodic adjustment using calibration chains (metal
chains of known weight). Also, the distance between the weightometer sensors affects
the accuracy of these units, as does the cleanliness of the area around the weightometer.
Weightometers should be checked for calibration and proper installation as part of the
routine investigation of reconciliation issues.
Measurement of Mill Feed Moisture Content Typically a single moisture factor is
applied to all belt weightometer data to determine the amount of dry ore fed to the mill. In
climates where rain or snowfall is relatively constant throughout the year, this approach is
acceptable. However, in tropical locations, significant fluctuations in moisture content of
the ore can occur over short periods of time. These fluctuations can significantly impact
tonnage reconciliations and may require the use of multiple moisture factors or the
sampling and analysis of moisture on a daily basis.
Sampling of Tails Tailings assays and total gold or other metal produced are the two
components used to back-calculate mill feed (head) grades. While total metal produced
can be measured precisely where dor is produced, the measurement of the amount of
metal lost to tailings depends on the accuracy of the tailings sampling procedure.
Sampling of Concentrate It is difficult to obtain a good sample of concentrate prior to
its shipment to a smelter/refinery. Relatively small sampling errors can have a large
impact on the total gold content of the concentrate.
Concentrate Loss during Shipping Depending on the distance to a smelter/refinery
and the mode of transport, concentrate loss can amount to as much as five percent.
Concentrate loss mainly occurs during handling (loading and unloading) or wind, if
shipped in open cars or vessels.
Loss of Gold in Refinery Slag Each time gold dor is poured in the refinery, some gold
remains trapped in the silica fluid that is decanted prior to pouring bars. Although the
resulting silica slag is processed subsequently to recover the entrapped gold, the refinery
often waits until there is a significant amount of the slag. The time delay can skew
monthly reconciliations, and the percentage of gold recovered from the slag is dependent
on the care taken during its reprocessing.
In-Process Inventory Significant amounts of gold can reside in process inventory in a
plant or heap leach pad. In a heap leach system, the gold in process at any one time can
amount to tens of thousands of ounces. In process gold in a heap includes gold carried in
circulating solutions as well as gold remaining to be leached in the pad. These ounces
remain as inventory until an individual pad is shut down and rinsed. In a mill, gold in
process includes gold in solution and gold bedded in equipment (ball mill scoop boxes,
pump sumps, thickeners). Depending on maintenance schedules, gold can reside in
some equipment for more than a year.
Theft of Gold In the plant, gold naturally presents itself as a temptation because it
resides in concentrated amounts, especially in mills where gravity circuits are in use (see
Section 10, METALLURGICAL DATA COLLECTION AND METALLURGICAL
TESTWORK, of this reference volume). While the possibility of theft in the plant is
sometimes difficult for management to accept, it should always be considered seriously,
especially where call factors are accepted as a standard practice.

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15.5.2

MINE

The items in the mine that require attention in response to poor mine/mill or resource
model/mine reconciliations include:
Measurement of Tonnage Mined Tonnage produced from either open pit or
underground operations is usually based on surveyed volumes and/or truck counts. Both
require the application of material density factors to the surveyed volumes or truck counts
to arrive at tons (tonnes) produced from the mine. Where tonnage discrepancies between
the mine and mill vary consistently in the same direction, the focus in the mine should be
on confirming the validity of the density factor(s). Where tonnage differences are sporadic
but chronic, truck count accuracy and survey accuracy should be examined.
Misdirection of Trucks In open pits (and to a lesser extent in underground mines),
misdirection of trucks can result in sporadic variations in tonnage reconciliations. Truck
misdirection occurs as a result of poor dispatch procedures or operator error (both
intentional and unintentional). Dispatch systems that use GPS technology help eliminate
this potential source of error.
Measurement of Ore Grade In open pits, the determination of the grade of ore mined is
based primarily on blasthole sampling or trench sampling of bench floors. At underground
operations, as-mined grade estimates are derived from development and production face
sampling, truck grab sampling, loader bucket grab sampling, muck pile grab sampling, or
some combination of these methods. Where grade discrepancies exist between mine and
mill, each sampling method should be thoroughly reviewed to determine if one or more of
the methods (especially the various types of grab sampling) have introduced a bias into
the mines grade estimate. Where as-mined grades are based on face sampling, the
dilution assumptions must be carefully reviewed.
Theft of Gold - Theft of gold within a mine is difficult to prevent, even with elaborate
security measures in place. However, it is generally not a serious problem because the
vast majority of gold in most ores occurs in grains that are too small to visually distinguish.
Unless theft of high grade material is rampant, the gold lost as a result of theft by mine
workers will not significantly affect mine/mill reconciliations.

15.5.3

RESOURCE MODEL

The resource model is always the first suspect when model/mine reconciliations go awry.
This section does not delve into the specific aspects of resource modeling in detail (see
Section 9, RESOURCE MODELING, for additional information). What follows are brief
descriptions of the model parameters or components that should be reviewed when poor
reconciliations occur.
The tonnage and grade predicted by the resource model should be checked against the
as mined volumes (tonnages) and grades as described in Sections 15.3.1.2 and 15.3.2.2.
When discrepancies occur, the following items checked relative to the model:
Spatial Distribution of Ore Tonnage Simply stated, the model should accurately
estimate ore tonnage as defined by the underground as mined boundaries or the open pit
dig lines.

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Material Density The material densities used in the resource model should be checked
against the densities used by the mine operations staff to determine as mined tonnages.
It is not unusual for the densities used for resource modeling to be more detailed than the
densities used every day by the mine department.
Grade Estimation The local grades in the model should be compared with
corresponding as-mined grades from pit grade control sampling or underground stope or
development heading sampling. It is not uncommon for the global estimation of metal in a
deposit to compare closely with the total metal mined and recovered, while at the same
time the models local grade estimates vary widely compared to as mined grades. Poor
local grade estimates in the model often play havoc with short-term reconciliations.
Mining Recovery For areas where mining is finished, the mining recovery assumptions
made during resource modeling should be checked against actual ore recovery. For
underground mines, care must be taken to ensure that the volume mined corresponds
reasonably well to the planned ore outlines (see Section 15.3.2.2).
Dilution Check to ensure that the dilution assumptions made during resource modeling
are valid.

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