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HMINE 521 APRIL 2022

The document outlines the sessional examination for the Mineral Resources Management course at Midlands State University, focusing on the role of mineral resource management in national economics and the definitions of various terms related to mineral reserves. It includes questions on calculating mine life, evaluating mining projects, and conducting economic analyses. Additionally, it discusses the impact of Business Intelligence Units on mineral resource management.

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14 views6 pages

HMINE 521 APRIL 2022

The document outlines the sessional examination for the Mineral Resources Management course at Midlands State University, focusing on the role of mineral resource management in national economics and the definitions of various terms related to mineral reserves. It includes questions on calculating mine life, evaluating mining projects, and conducting economic analyses. Additionally, it discusses the impact of Business Intelligence Units on mineral resource management.

Uploaded by

mcntinotenda01
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MIDLANDS STATE UNIVERSITY

FACULTY OF ENGINEERING AND


GEOSCIENCES
Mining Engineering Department
HMINE 521
Mineral Resources Management

SESSIONAL EXAMINATIONS
SECTION A

Question 1

a) Explain briefly the role of Mineral Resource Management in the


growth of national economics.

[25]

Section B

Question 2

a) Fraudulent ‘Reserves’ have been produced for mineral occurrences


over the last few decades and have resulted in stricter regulations
regarding the Reporting of Mineral Reserves. In that context, define
the following.

a. Measured, Indicated, Inferred

b. Mineral Reserve

c. Mineral Resources
d. Ore Reserve

e. Qualified/ Competent Person


f. Data Verification

g. Technical Report [25]

Question 3

a. a. For a Mineral Reserve 220 million tonnes, what is the expected life
of the mine and will be daily production rate? [5]

b. The figure below shows the two vertical end sections of a block of ore.
Information regarding the area and grade are furnished alongside.
calculate the total tonnage grade of the block [5]

Area of the first section A1=175m2


Mean grade of the mineralized part of the first section g1 = 2.09%
Area of second section A2=205m2
Mean grade of the mineralized part of the second section g2
Distance between the sections L=50m
Specific gravity of ore =0.118t/m3

c. Highlight the major factors taken into account during the conversion
of a measured resources into a proven reserve, including a list of the
necessary statements to be made by the competent person. [15]

Question 4

a. State the different methods applicable to the evaluation of mining


projects [3]

b. For the methods mentioned in (a) above, discuss their effectiveness


and suitability for the evaluation of mining projects? Which one is
the most suitable and why? [15]

c. The following cash flows have been given for a developed project:

Year 1 2 3 4 5 6 7 8
Expenditure 400 200 50 50 50 150 45 40
Income 0 120 240 300 300 300 200 120

Estimate the benefit/cost ratio and the accounting rate of return for
the project. [7]
Question 5
The 2-D geological block model shown below gives composite ore
grades for a poly-metallic deposit in percent. For this deposit, a grade
cut off of 1.5% is used to differentiate between ore and waste.

a) Determine the net value of each block and fill in the block value in
the corresponding location of the 2-D economic block model [5]
b) Conduct a 2-D Lerch Grossman or Floating Cone analysis to
determine the most profitable pit outline [10]

Block dimensions are 10m north by 20m elevation by 10m


Elevation
Ore and waste densities are both 2300kgm-3
Net processed mineral value (Including NSR and Transport
Charges ) is $1500/tonne
Mill recovery is 95%
Mine Recovery is 100%
Combined mining costs are $20/tonne
Combined milling costs are $15/tonne
Combined overhead costs are $15/tonne

Geological Block Model (Composite Mineral Grade in percent)

0 0 2 3 0 0 0 0
0 0 1 4 4 0 0 0
0 0 1 4 2 0 0 0
1 1 1 2 6 1 0 0
0 1 1 2 2 1 2 0

Economic Block Model ($)

Optimum PIT OUTLINE

c) ‘The technology of Business Intelligence Units will revolutionize


the management of mineral resources’. What do you think?

[10]

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