Newsletter June 2011

exclusive manual 3D solid models for control. Such sections become the base FASTER 3D totally shared walls between adjacent data used by the Geology Adjusted solids; and implicit mathematical 3D Modelling technique. There is no need MODELLING solid models. The mathematical models to create solids as the starting point. are supposed to be automatic, however Marcelo Arancibia, Senior geological polygon lines and points Block model tools developed for resource Vice President Maptek™ South must be used to control the geology! estimation and subsequent reserve assessment are used to generate the solid America, describes a technique Using traditional techniques, building and/or surface models representing the to increase productivity in the 3D solids for the test case took one deposit, directly from the geological data. generating 3D geological month. The same 3D models were built in models for large complex only 20 minutes using the new technique. Techniques for the estimation of block model domains include: continuous metalliferous orebodies. Modelling is based on observed data and/or categorical Indicator estimation; from mapping or geological logs. The continuous or categorical Indicator The Geology Adjusted Modelling method interpretation of sections and/or plans simulation; pluri-Gaussian simulation; was presented at the Australian Users always reflects the geological knowledge and truncated Gaussian simulation. Conference in April. It uses existing ™ of the deposit. Vulcan tools, and has been tested Block model population for the test with the help of customers in Chile. case was through estimation by the nearest neighbour method, but A test case considered a deposit with any other geostatistical estimation four different geological units. There were method could have been used. 50 geological sections at 25m intervals, with half perpendicular to the others. The output showed that the resultant Geology Adjusted Model was identical The case study compared the different to the block model developed by traditional techniques and evaluated traditional methods from 3D solids. the results against the Geology The 20 minute execution time proves Adjusted Modelling method. The geologist always has a three the new technique to be a winner! Various traditional techniques are dimensional picture in mind - even used for generating solid models, without computers. including: 2D solid extrusion models; manual 2.5D solid models connecting Geologists transform the drilling data sections; inclusive manual 3D solid into ‘hard’ intercept data to produce models observing the drilling intercepts; sections or lines - polygons of geological ‘THIS METHOD IS MORE DIRECT - THE INNATE GEOLOGICAL KNOWLEDGE GOES STRAIGHT INTO THE BLOCK MODEL.’ Marcelo Arancibia, Maptek > In this issue

Underground Stope Optimiser I-Site Scanning Roadshow Consulting & Training News Users Conferences Simulation for Better Grade Data Optimising Waste Dumps The Stope Optimiser was run for a VULCAN HELPS range of cut-off grades and several shape configurations. The results SHAPE TANAMI were tabulated in a spreadsheet to obtain expansion factors for tonnes Newmont Asia Pacific recently and ounces. These factors were tested the new Vulcan™ Stope used in the mine schedule to prepare Optimiser on scenarios for quick estimates for shaft scenarios. the Tanami Operations in the ‘The results were enough to enable Northern Territory of . us to move on without having to re-design stopes manually’, Mining for gold began in the early 1900s said Nadine Wetzel, Senior Mine and most recently from the late 1980s. Planning Engineer for Newmont. Current production comes from the Stope Optimiser shapes (grey) vs manually designed stopes Callie underground orebody. Exploration ‘This is a long project, and we’re still and feasibility investigations continue working on it. Getting the information as Newmont looks for opportunities quickly has meant the project has not The current version of the Stope Optimiser to extend the life of the mine. been delayed. Information from the Vulcan is an output of AMIRA’s PRIMO research reports can be fed into the mine plans, project (see Forge September 2010). In early 2011 Newmont’s mine planning and used by the geologists as well.’ team used the Vulcan Stope Optimiser, Newmont was involved in sponsoring available in Vulcan 8.1, to assess how The Stope Optimiser was also run for this project and is now sponsoring cut-off grade variations may affect the Villa orebody, which is a narrow AMIRA’s P1037 project which aims to the orebody expansion plans. vein type deposit close to the surface. continue development of the Stope A range of cut-off grades and minimum Optimiser tool. Newmont is contributing Newmont is looking to set up a haulage stoping widths were evaluated. experience and suggestions to the shaft at the Tanami which would allow Comparing the results in a spreadsheet research project team, and looks forward the operation to reduce the cut-off helped the mine planning team to get to the results of the next stage. grade at which stopes are mined. a feel for the continuity of the orebody Improving economies of scale, and Thanks to under a range of assumptions. Nadine Wetzel overcoming haulage and trucking Senior Mine Planning Engineer constraints would mean they could ‘The benefits of the Stope Optimiser are Newmont Asia Pacific extract more material from the mine. that it is very quick, its design parameters Presented at Australian Users Conference, April 2011 can be changed very easily and it gives Establishing a hoisting shaft for the main a repeatable result every time with Callie orebody is expected to reduce the same parameters. In comparison, the cut-off grade by around 0.5 g/t. if 2 or 3 engineers did this manually, VULCAN™ STOPE OPTIMISER reads different designs would eventuate from a Vulcan block model with either grade The Stope Optimiser was part of the same parameters. And you know or economic information, applies stope the process to assess the new haul that the Stope Optimiser generates framework and geometric constraints, shaft in terms of cut-off grades and the optimum design’, added Wetzel. and creates a set of mineable stope volume of ore recovered. A dramatic shapes. These are summarised in an time improvement was seen in getting optimisation log and reserve report. results, over a manual design method. Vulcan Stope Optimiser delivers full 3D capabilities on stope shape generation and block model analysis without manual digitising. Because reserving is incorporated, no iteration is required to produce the optimum 3D stope shape. Stope design time is reduced

JUNE 2011 by 98% compared with manual design. Productivity is increased substantially. 2 Vulcan’s 3D integration removes 2D cross-section constraints and enables multiple runs for analysing ‘what-if’ scenarios. Hanging wall and footwall visualisation allows the planner to have influence over the final stope design. MAPTEK FORGE Further information about the Vulcan Stope Optimiser can be found at Long projection of Newmont’s Tanami www.maptek.com/vulcan8.1/ underground orebodies ‘We customised the truck to include 01 MAPTEK DRIVES a 17” flatscreen and laptop running the Maptek I-Site data acquisition MINE SURVEY software, I-Site Studio™ and GPS software, allowing us to process the SOLUTION results while mapping in the field.’ Maptek’s customised vehicle Traditional workflow requires surveyors has been used to demonstrate to collect data in the field and take ™ it back to the office for processing I-Site scanning capabilities and analysis. Often it is not until the around North America. processing stage that lack of coverage or ‘shadows’ in the data become evident. In November 2010, I-Site Services 02 Manager Scott Schiele began planning This requires a trip back out to the the acquisition of a truck to showcase site to fill the gaps. Scanning with the the I-Site laser scanning system. His I-Site system eliminates that second goal was to enable clients and prospects trip; viewing the data in the field to see I-Site in action at their sites and shows whether the area has been show how it could work for them. adequately covered before leaving.

Maptek unveiled the I-Site truck at the Jon Larson, General Manager of February 2011 SME tradeshow in Denver, Maptek in North America, notes that Colorado, generating a tremendous the integration of equipment is key. amount of interest. This prompted Maptek to launch an I-Site roadshow. ‘Because we’ve combined the I-Site 03 8800 with I-Site Studio and GPS on a Schiele, along with I-Site team members vehicle, we’re now able to show people John Dolan and Mike Foster, embarked how they can acquire and process their on a five state tour of Western US mines data in just a few minutes’, Larson says. in late March. The team demonstrated how an I-Site equipped vehicle obtains ‘The truck fully equips us to meet near-instantaneous data using 3D laser a client’s on-site survey needs. Our scanning technology. consulting offering includes end- of-month reconciliations, stockpile Schiele explains, ‘With the I-Site 8800™ measurements and highwall mapping.’ laser scanner on a vehicle mount and high precision GPS system, we have a Site personnel appreciated seeing 01 Scott Schiele demonstrates I-Site Studio their data processed immediately on software in the mobile mapping vehicle fully integrated mobile scanning vehicle. 02 I-Site truck at Red Rocks Amphitheatre near It’s like a survey office on wheels.’ the flatscreen in the truck. The team Denver, prior to field trials also demonstrated video fly-throughs 03 Scott Schiele demonstrates the I-Site 8800 to of portions of each site, showing Ben Beard of Resolution Copper The I-Site 8800 is the first survey scanned results in real time. 04 The I-Site team: Scott Schiele, James Kenney, instrument to combine long range Mike Foster and John Dolan laser scanning and panoramic digital For details email [email protected] or colour photography at a super high visit www.maptek.com/roadshow resolution of 70 megapixels.

04 ‘IT’S A SURVEY OFFICE ON WHEELS...’ Scott Schiele, Maptek JUNE 2011

3 MAPTEK FORGE MAPTEK INDIA LKAB, SWEDEN CHRONOS FOR Maptek™ has established an GOES MAPTEK CANNINGTON office in New Delhi to service the Indian mining market. Maptek’s global prowess in Mining engineers from BHP established mining markets Billiton’s Cannington site were India has a wealth of natural resources cut no ice when convincing the recently trained in the newly for internal consumption and export, with significant areas yet to be fully explored. Scandinavian market that we acquired Vulcan Chronos The current challenge for the mining could deliver the best solutions scheduling module. industry is to assess the potential to keep in Scandinavia to Scandinavian Maptek staff flew to Townsville to train pace with commitments for growth. companies. Douglas Suk and Karthikeyan Nadarajan. Vulcan Product Manager, Eric Gonzalez, ‘Maptek products can help meet the Elkem of Norway became our first who was visiting Australia from Denver at demand by miners for better technical customer in Scandinavia in 2002, after the time, took the opportunity to share his capability. Considering the industrial conducting a careful analysis of Maptek Chronos expertise. growth and urbanisation of India, we products and services. know this is a favourable time to offer BHP Billiton is in the final pre-feasibility our solutions. We can do that better with In December 2010 Maptek was given stage to move operations towards a a local presence’, said Maptek General another opportunity to prove our worth. combined underground and open pit at Manager, Peter Johnson. Swedish company, LKAB (Luossavaara- Cannington, with excavation due to start Kiirunavaara AB) is one of the world’s in mid 2012. The mine planning engineers New staff have undertaken training in leading producers of upgraded iron ore will use Chronos to set up a long-term Australia to become familiar with Maptek products for the steel industry and a schedule, programming the first two years products and service delivery standards. growing supplier of industrial minerals on a monthly basis, followed by quarterly products. The company’s chief assets are Praveen Mishra, Regional Manager, periods, to create a 5-10 year plan. the magnetite ore deposits at Kiruna and India Operations and Mark Scholes, Malmberget in northern Sweden. Mine Planning Solutions Manager for Eric Gonzalez claims that ‘enhancements to Chronos in Vulcan 8.1, involving multi- Australia, showcased the latest Maptek LKAB planners were struggling to deliver threading and tuning parameters, reduce products and services at the Geominetech enough fast, accurate information to the time required to run mine schedule Symposium in Bhubaneswar, India in May. satisfy the demands of a rapidly growing optimisations by up to 99%’. production schedule. Their mine planning ‘MAPTEK STANDS FOR engineer Matti Sormunen contacted INNOVATIVE TECHNOLOGY AND Maptek in , UK, to evaluate our CUSTOMER SATISFACTION. WE capabilities. A thorough analysis of the OFFER THE PERFECT MINING Vulcan™ software convinced LKAB that it APPLICATIONS FOR YOUR SITE was the solution they needed. AND GUARANTEE GLOBAL AND LKAB has now implemented Vulcan for LOCAL SUPPORT.’ Praveen Mishra geological modelling and mine planning, with training underway to bring the Contact us geologists and mine engineers up to AB-26, Shalimar Bagh speed with Vulcan functionality. Alison Farrah (Maptek), Douglas Suk (BHP Billiton), New Delhi Mike Winfield and Eric Gonzalez (Maptek), and Delhi - 110088 Karthikeyan Nadarajan (BHP Billiton) Telephone +91-9 2121 47520 Email: [email protected] GEOSTATISTICS JUNE 2011

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Maptek will host the Citation in Applied Geostatistics in Viña del Mar, Chile and MAPTEK FORGE , Western Australia during 2012. Courses will be run by Dr Clayton Deutsch. Mr B.D. Mishra (former Head of IIT Kharagpur) Maptek’s Graeme Cowie (right) demonstrating presents an award for excellence to Mark Scholes the I-Site 8800 laser scanner on site with LKAB To find out more, email [email protected] personnel in northern Sweden in February 2011 or [email protected] TRAINING IN CONSULTING MONGOLIA IN SENEGAL

Technical services staff from Technical staff in all Maptek Australia have been training regional offices relish the geologists and mining engineers opportunity to work in a variety at Oyu Tolgoi in Mongolia. of specialist tasks. One of these is to help operations Last year, Vulcan™ was acquired for exploration, geological modelling and Oyu Tolgoi technical staff when short staffed. engineering design of the Oyu Tolgoi into one comprehensive geotechnical Neto Kapalata, Technical Services copper-gold mine in the Gobi Desert of database so it can be used effectively. Mine Planner/Surveyor from Maptek’s southern Mongolia. Johannesburg office is supporting the Geotechnical staff can load all their Oyu Tolgoi LLC, which will build and mine engineering department of Sabodala structural data, such as joints and faults, operate the project, is a partnership Gold Operations in Senegal, close to the and run Vulcan’s stereonet tool to view between the Government of Mongolia, border with Mali. areas of strength/weakness in the mine. Ivanhoe Mines and Rio Tinto. Commercial The property, owned and operated production is scheduled to begin in 2013. Downhole televiewer data can also be by Teranga Gold Corporation, was loaded into the Vulcan geotechnical Maptek™ mining engineer Mike Winfield experiencing staff turnover issues, and database. Registering the 3D downhole and geologist Julian Cosson visited the required a relieving senior mining engineer images onto the holes adds a further Oyu Tolgoi site in March 2011. A total of for three months. Kapalata’s role is to element to the interrogation process. 23 personnel received specialist training in restructure and re-form a functioning mine engineering department. Vulcan geology, block modelling, resource ‘Rather than looking at each hole estimation, geotechnical, underground individually, you can load it all and do His site routine involves inspecting survey and engineering tools. some analysis; for example to work out load and haul, dewatering, dispatch where failure planes are likely to intersect engineering and drill & blast, and advising your mine’, said Winfield. on aspects of the operation.

Staff also learnt how to use the tools to generate data using the survey instrument to get data directly into Vulcan. This will lead to more accurate survey volumes for design and geotechnical analysis.

Six geologists undertook introductory Vulcan training to become familiar with Maptek and Oyu Tolgoi staff at Ihbulag in CAD, triangulation and block modelling Omnogov, Mongolia in March 2011 tools. Drillhole database design, creation Geotechnical training started with building and validation, and statistical methods for and populating databases. Core is logged analysing drillholes were also covered. into spreadsheets and stored in the L-R: Michel Sauvenier, new Chief Mining Engineer, acQuire master database, then exported The site resource geologists underwent Sabodala Gold Operations, Neto Kapalata, Technical to csv format and imported into Vulcan. training in the specialised tools for drillhole Services Maptek, and Yani Roditis, Vice President of database, statistics, grade estimation, Operations, Teranga Gold Corporation The massive amount of data collected block modelling and scripting tasks. by site engineering contractors required Workshops using Oyu Tolgoi site data transfer from CAD format into Vulcan. Site helped the technical personnel to become

staff learned how to structure the data confident in using the new tools. JUNE 2011

5 MAPTEK FORGE USERS CONFERENCES 2011 AUSTRALIA EUROPE-AFRICA Customers and staff gathered 4-7 September, Scotland at the Vines Resort north of The 2nd Africa and Europe Users Perth, during the heat of early Conference is being held in picturesque April, to share experiences of the Pitlochry, Scotland. The presentation application of Maptek products. schedule is full to overflowing with speakers from around the world. More than 100 registrants from 6 countries Keynote talks from Maptek founder Bob made the trip to Western Australia, with ‘I highly recommend people to come to conferences. Even if some presentations Johnson, and prominent Scottish geologist industry networking cited as one of the are not oriented towards your specific and science communicator Professor greatest benefits of attending. Maptek field, there are still a lot of things to learn. Stuart Monro, have been lined up, as well themes included new techniques in I specialise in coal but in the metals talks I as Europe’s first taste of the inside story to learnt techniques and shortcuts. Talking to modelling, survey, optimisation and data the dramatic Chile mine rescue in 2010. integration. Interesting customer case a lot of people and exchanging ideas is a very worthwhile experience. The workshops A comprehensive list of technical talks will studies covered all resource types - iron are a great way to learn new techniques.’ ore, coal, potash, diamonds and gold. Mike Kuligowski, Peabody Energy, St Louis be offered across the mining spectrum. Come and hear from Maptek resident ‘The best thing about the conference was experts and an outstanding selection of the interaction and social contact with other customer speakers. Maptek users. It really opened my mind to the way that Vulcan is used in other EARLY REGISTRATION DISCOUNT companies and for other commodities. RATE EXTENDED TO 17 JUNE It was good to see new products which can improve the quality of our work. And Visit www.maptek.com/europe_2011 all in a friendly and relaxed atmosphere.’ Anne-Audrey Latscha, Rio Tinto

‘Previewing the Vulcan 8.1 features SOUTH AMERICA before they were rolled out, and seeing how Vulcan is used in other companies 5-7 October, Chile New developments in Vulcan,