Recognising Geology as Major Source of Mining Business Investment risk

Transcription

1 Faculty of Engineering\School of Mining Engineering Recognising Geology as Major Source of Mining Business Investment risk Professor Fidelis T Suorineni Chair of Mine Geotechnical Engineering

2 Background Grim reminder of the Bre-X Scandal What is Bre-X?» Bre-X Minerals Ltd. Was A Canadian company)» Acquired property in the headwaters of the Busang River, Borneo in Indonesia» Bre-X hired Michael de Guzman to map the orebody» Michael de Guzman reported 200-million-ounce resource at US$500 per ounce! Problems Deposit never existed (Samples Salted) Stocks collapsed De Guzman committed suicide 1

3 Lessons Learnt Association of Professional Geologists of Ontario (APGO) established by legislation Self-regulating APGO responsibilities To establish professional standards To help safe-guard the public against unskilled or unethical actions» Established designation of qualified persons to review and approve any mineral exploration results to be made available to the public. National Instrument (NI) (NI ) A codified reporting scheme to prevent fraud occurring and ensures projects have been assessed in a scientific and professional manner Created after the Bre-X scandal to protect investors from unsubstantiated mineral project disclosures 2

4 Lessons Learnt International Equivalents of NI Joint Ore Reserves Committee Code (JORC Code)» Regulates the publication of mineral exploration reports on the Australian Stock Exchange (ASX) The South African Code for the Reporting of Mineral Resources and Mineral Reserves (SAMREC) The Pan-European Code for Reporting of Exploration Results, Mineral Resources and Reserves (PERC Code) United States Securities and Exchange Commission Guide (SEC Industry Guide 7) What can Kazakhstan Learn? 3

5 The Geologist and the Mining Cycle Importance of geology and geologists in mining investments is grossly underestimated and undervalued Other geoscientists undervalue Geology» Mining Engineers» Civil Geotechnical Engineers There is often communication gap between Mining Engineers and Geologist following ore discoveries» Missed opportunities for Investment risk reduction» Geologists critical throughout the mining process Diminishing Geological Risk Exploration Genetic model Where is the Mineralisation? Geological and Geotechnical Models 3D Orebody Geometry Geotechnical Model Resource and Reserve Estimation Mine Planning and Development Production and Monitoring Mining method Where are the structures Location of critical in infrastructure Closure and Rehabilitation Resource estimation Were we correct? Resource classification What needs change? Resource reporting

6 Geologists and Mining Investment Risks Virtual Reality Technology Ideal Modified from McCuaig et al. (2000)

7 Investors Risk to Increase with Low Grade Discoveries Challenging to fine Discover Increasing depths Inefficient tools Dwindling interest in geology» Expert panel conclusion Expert Panel Workshop (ARMA, 2010), Salt Lake City, Uta

8 UNSW Sydney, Australia Our Strength & Vision Solving the complex geology problem in the critical path 3D Geology model» Power of n-dimensional multi source parameters data integration» Potential for conflict resolution» Multidisciplinary approach» Encourage collaboration Taking advantage of the Internationally recognised world class faculty of Engineering 9 excellent schools of engineering in various fields Taking advantage of our award wining Advanced Visualisation and Interaction Environment (AVIE)-360

9 Example Use of VR Technology for 3D Modelling of Complex Multi Dimensional Data Built for the AVIE Sense of immersion Collaboration Spatial and temporal context Playback

10 Exploration and Discovery of Low Grade Deposits at Depth UNSW Sydney Faculty of Engineering Schools Collaboration Proposed innovations on sensor technologies data analytics and physics modelling group to feed the visualization front end for next resource discovery. School of Mining Engineering Petroleum Engineering Computer Science and Engineering School of Electrical Engineering School of civil and Environmental Engineering

11 UNSW VR Technology Modules for Training, Teaching and Research in Mining Virtual Reality Module Name Unaided Self-Escape Research Licence Document Truck Pre-Shift Inspection Spontaneous Combustion Rib Stability Isolation Hazard Awareness Hazard Awareness Unity Gas Outburst Deputies Inspection We are Leaders Working at Heights MEA Truck and Shovel Mining in a Global Environment Longwall Top Coal Caving Laboratory Rock Testing Block Caving Block Caving Unity ViMine 1 ViMine 2 Northparkes Mines Visualisation Coal Geology Block Cave Mining System Visualiser (BCMSV) Research Licence agreement 1 (NSi, UNSW Mining Engineering, University of Pretoria Mining Engineering) Research Licence agreement 2 (UNSW Mining Engineering, University of Pretoria Mining Engineering)

12