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9.7 Option — Mining and the Australian Environment: 4. The exploration and evaluation of a named ore deposit

Syllabus reference (October 2002 version)
4. The exploration and evaluation of a named ore deposit Students learn to: Students:

Extract from Earth and Environmental Science Stage 6 Syllabus (Amended October 2002. © Board of Studies, NSW.

[Edit:7 Aug 08]

gather information to describe the impact of improvements in technology on exploration techniques

outline the common exploration methods used to identify the ore deposit (including satellite imagery, aerial photograph interpretation, geophysics, geochemistry and drilling)

Both the above dot points are covered below.

Use the information below on improvements in technology on exploration techniques and see if you can, add to this information by looking on the Internet as new technologies are developed fairly regularly.

Geological mapping, satellite imagery and aerial photography

Geochemical exploration

Geophysics

Electrical methods

Seismic Surveys

Radiometric Surveys

Drilling

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plan and perform first-hand investigations to test for the presence of ore minerals or metals using:

A Geophysical method

A Geochemical Method

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describe the role of drilling in determining the size and grade of the deposit

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gather information from secondary sources to analyse the processes used to determine the feasibility of mining the deposit

Information can be gathered by going to the Internet or by contacting local mining companies by telephone. A website that has information about how to determine feasibility is Mining Feasibility for Mining Company Project Selecting this link will take you to an external site. Australia. Another website is Feasibility Selecting this link will take you to an external site. GemCom, Mine Production Management Solutions, Vancouver, BC, Canada

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analyse the process of determining the feasibility of mining the deposit, referring to the stages involved in its development from a resource to a reserve

Once a deposit has been detected by drilling, a feasibility study is carried out to determine whether it is viable to mine the site. If the deposit is too small, not concentrated enough or too isolated, then mining of the site will not continue. On average, about ten potential mine sites out of every thousand will reach drilling stage, and of these, only one will lead to the development of a mine.

The feasibility study may be divided into stages:

  1. Economic concepts and criteria
    • outlining the economic basis for exploration decisions
    • investigation of the risks and returns of mining, along with exploration costs
    • discussion of the role mining of such a deposit will have in the mining company
    • consideration of the expected value of the deposit.

  2. Documentation of data
    • definition of the geological regions
    • estimation of the cost of exploration by considering the exploration environment, time needed and geological region.

  3. Data base compilation
    • listing of possible discoveries for evaluation
    • projection of long term metal prices
    • investigation of the net economic return from the smelter
    • estimation of the deposit size and cost for the deposit based on historical data
    • development of general deposit costing relationships.

  4. Before tax assessment of exploration
    • a set of base conditions are evaluated (including the exploration environment, geographical region, metal prices, mineral fields and time requirements) before an analysis is given.

  5. After tax assessment of exploration
    • consideration of present Australian income tax and state royalty payment systems
    • overall analysis of the viability of mining the chosen site.

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explain how local, state and federal government policies may affect the decision to mine the deposit

State

The Environmental Policy of the NSW Department of Primary Industry, Mineral Resources states several controls imposed on the mining industry that may affect its decision to mine a deposit. If any of the controls below are breached, sanctions may be incurred by the Department:

  1. The Department reviews Environmental Impact Statements and compares them to performance criteria, through a consultative process involving other government agencies and stakeholders.
  2. The Department reviews environmental data.
  3. The Department conducts site inspections and audits.
  4. The Department investigates incidents.

Federal

The site below is for the Ranger Uranium Mine and is a special case as it is within the World Heritage Kakadu National Park. Environmental requirements of the Commonwealth of Australia for the operation of Ranger uranium mine. Selecting this link will take you to an external site. Environment Australia, Department of Environment and Heritage, Canberra, Australia

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gather information from secondary sources to examine methods used to extract and refine the ore from the deposit

The best place to gather information is from the Internet. Below is a link to the Minerals Council of Australia. You could also find information about overseas mines by using a search engine.

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assess the impact of installing infrastructure or using that which already exists on determining the feasibility of mining the deposit

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outline the methods and technologies used in the extraction, concentration and refining of ore from the deposit

Example: Uranium

Extraction:

Uranium is usually extracted using one of three mining methods:

Concentration

Concentration of the uranium involves the following steps:

Refining

Refining involves three steps:

  1. The uranium is recovered in a precipitate which is filtered and dried to produce a yellow powder called yellowcake.

  2. The yellowcake is heated to 700°C, producing dark grey uranium oxide powder.

  3. The powder is placed in steel drums for export.

The Uranium Information Centre Selecting this link will take you to an external site. details the chemistry behind uranium mining and processing, while the Minerals Council of Australia Selecting this link will take you to an external site. provides much information on all aspects of uranium mining in Australia.

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