Geometallurgy for Mineral Sands: Impacts on Mineral Resource and Ore

Reserve Estimation and Valuation

Greg Jones Principal, GNJ Consulting Pty Ltd

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014  

Today you will gain an insight into: Why geometallurgy is important to your business Sampling and what are we looking for? What that translates to for your operation The impact on Mineral Resources and Ore Reserves and reporting How getting it right can maximise and add value to your business 14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   2

Why is geometallurgy important?

Allows us to predict and understand . . .

Mineralogy, quality and recovery characteristics

Plant and equipment selection and requirements

Mining and separation performance

The impact on Mineral Resource and Ore Reserve Estimation

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   3

Therefore it should be of interest to everybody in this room!

(and throughout the industry)

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   4

e , process it

To put it another way

Can we mine it

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   5

$$$$

and sell it at a profit?

Geometallurgy for mineral sands

We are dealing with deposits that . .

Often have unique provenance or source . . .

. . . and therefore potentially varied mineral assemblage.

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   6

Geometallurgy for mineral sands Come in a wide variety of grain sizes, shapes, rounding and sorting

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   7

Geometallurgy for mineral sands

Are subject to post depositional weathering

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The Good The Bad The Ugly

Geometallurgy is a buzzword . . .

. . but it really puts a label to what many geologists and metallurgists have been doing for years.

Trying to optimise deposits for the best recovery and financial outcome in order to deliver value for shareholders and investors

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   9

How many samples?

Sampling allows us to measure characteristics of a deposit

Too few samples and generalisations are made

Too many becomes time and cost prohibitive

so the question is . . .

. . . how do we find the optimal number? 14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   10

What are we sampling?

Sampling the right parts of the deposit is important

We need to understand geological domains . . .

. . . depositional history . . . . . . and post depositional features

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   11

What mining method?

This could also read “ and what production rate?”

Large bulk mining operations generally require less samples per tonne of HM . . .

. . . smaller deposits may require more . . .

. . it all depends on the deposit complexity

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Blending requirements?

Additionally what blending capabilities are available?

Deposits can be blended in pit or at stockpiles

In pit blending = adequate deposit sampling and a disciplined mine and production plan - rigid

Stockpile blending = disciplined sampling, willingness to carry stockpiles at various locations - flexible

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Mineral characteristics

Differences in physical characteristics of HM can be exploited during processing

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Mineral Valuable Magnetic Susceptibility

Electrical Conductivity SG Chemical Formula

Ilmenite Yes High High 4.5 - 5.0 Fe.TiO3

Rutile Yes Low High 4.2 - 4.3 TiO2

Zircon Yes Low Low 4.7 ZrSiO4

Leucoxene Yes Semi High 3.5 - 4.1 Fe.TiO3.TiO2

Monazite No Semi Low 4.9 - 5.3 (Ce,La,Th,Nd,Y)PO4

Staurolite No Semi Low 3.6 - 3.8 Fe2Al9Si4O22.(OH)2

Kyanite No Low Low 3.6 - 3.7 Al2SiO5

Garnet No Semi Low 3.4 - 4.2 (Fe,Mn,Ca)3.Al2(SiO4)3

Quartz No Low Low 2.7 SiO2

Mineral characteristics Not all minerals are created alike!

Ilmenite weathers which reduces magnetic susceptibility

Clay and iron coatings on Zircon may impact ceramic quality

Zircon and ilmenite can have inherent radionuclides that impede transport and sale to some countries

Rutile can be difficult to separate from pyrite / sulphides

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Mineral characteristics And different minerals perform alike!

Monazite and garnet chases altered ilmenite around a dry circuit

Kyanite follows zircon around a dry circuit

Garnet is preferentially recovered in a wet circuit

Staurolite is preferentially recovered with altered ilmenite during magnetic separation

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Geometallurgical programs Most deposits are unique

Relevant geometallurgical issues differ from deposit to deposit

. . and there is no single template that can be used in all situations

Geometallurgy programs are nearly always customised

and tailored to the deposit and the mining/processing solution

Systematic procedures and testing processes are essential

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Mineral Resources and Ore Reserves Understanding Figure 1 from the JORC Code (2012)

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Increased  un

derstand

ing  of  

geom

etallurgical  prope

rEes  

Mineral Resources and Ore Reserves Without consideration of geometallurgical characteristics . . .

. . the confidence of Mineral Resources and resultant Ore Reserves must be low.

It is important that everyone . . .

. . . from the CEO to the resource estimator . . .

. . . understand the importance of the geometallurgical signatures of your deposit.

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Mineral Resources and Ore Reserves Discovery and drill out is simply the beginning

Defining the geometallurgical signature is the next step

This is an iterative process (as knowledge of deposit is uncovered)

Issues that could be fatal flaws are critical to the success of a project

Until geomet sampling is undertaken, you can’t know the issues

Under the new JORC Code the ASX and ergo the public are expected to be kept fully informed (Continuous Disclosure)

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Mineral Resources and Ore Reserves What impacts the most on deposit value?

HM grade is still number one (too low and economics marginal)

Mineralogical assemblage key value driver (price dependant and can improve a low HM grade deposit)

Mineral recoveries for both wet and dry plants important (a marginal project can hinge on optimal recoveries)

Deleterious chemical contaminants will determine final market (potential showstopper or might require blending)

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   21

To summarise . . . Geomet sampling is determined by deposit characteristics and in turn by operational requirements

Geomet programs are often unique - there is no “one size fits all”

Sampling and investigation of geomet signatures unlocks maximum value from your project

Getting a handle on the critical geomet signatures for your project can make the difference and therefore . . .

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   22

Geometallurgy is important to your mineral sands business

14th  Annual  AJM  Mineral  Sands  Conference  |  Rydges  Hotel,  Melbourne  |  4  -­‐  5  March  2014   23