1

SELECTIVE MINING TECHNIQUES - TELFER

Ross G. Oliver

Senior Mining Engineer

Newmont Holdings Pty. Ltd.,
Telfer Project, Western Australia

ABSTRACT

Gold mining commenced at Telfer in Western Australia in 1977.

Ore mining was carried out by owner equipment and personnel with waste
stripping by a contractor. Initial ore reserves were in predominantly
high grade, geologically simple reef structures. A mining method was
developed using dozers to selectively mine the ore bearing horizons
with a minimum of dilution. As the mine has developed the simple,
high grade ore reserves have been progressively replaced by more
geologically complex, lower grade reserves. In turn, mining methods
have evolved to extract this ore by the most appropriate methods.
On-going attention to ore mining practices will ensure that project
profitability and viable mine life are optimised.
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INTRODUCTION

The Telfer Project is a joint venture between Newmont Holdings

Pty. Ltd. (70 percent) and B.H.P. Minerals (30 percent), the latter a
wholly owned subsidiary of BHP. Telfer is located 400km east-south-east
of Port Hedland in the Great Sandy Desert (Fig.I).

···'..NO'AN OCEAN

_ ...... 4

TELfER

FIGURE 1. LOCATION PLAN

Newmont staked claims in the area in May 1972. This was

followed up by an extensive programme of shallow reverse circulation
drilling which identified a resource of 3.8 million tonnes grading 9.6
gft gold.

Approval for project go-ahead was granted by the relevant

government authorities in August, 1975. Construction work involving
the mine, mill, village and supporting infrastructure was followed by
initial waste stripping and ore mining, culminating in the first gold
pour in Apri 1, 1977. By the end of 1985 go 1d produced from Te 1fer
totalled 1.37 million ounces.
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The average annual milling capacity is 500,000 dry tonnes of

ore. Currently this rate is being expanded by upgrading the existing
treatment facilities and concurrently converting from a C.C.D.
(Counter Current Decantation) process to a C.LL. (Carbon in Leach)
process to recover the gold. The expansion works are scheduled for
completion in September, 1986, and will result in a design capacity of
1,500,000 dry tonnes per annum. The treatment plant is scheduled to
operate continuously 365 days per year. Grinding throughput is the
rate determining step. A primary objective of mine planning is to
optimise gold production in the short term while maintaining
profitability for the longer term so project viability is not
susceptible to falls in gold price. Mining practice to minimise
dilution of mill feed by waste material while maintaining ore
presentation at the required rate is an essential component in
achieving this objective. In turn, mining practice is dictated by the
geology and geometry of ore occurrence.

An overview of the Telfer operation 1 has been previously pub-

lished.

GEOLOGY AND MINERALISATION

The Telfer gold deposits occur in sedimentary rocks of

Proterozoic age associated with domal structures. Lithology consists
of interbedded sands tones , siltstones and shales. Economic gold
mineralization occurs as either stratabound quartz limonite reefs, or,
withi n stockwork
I I areas where gold values are found associ ated with
quartz in bedding joints and cross cutting tension fractures. All
prospective areas are characterised by faulting and shear zones which,
while extensive in nature, generally only show small displacements.
This tectonic activity has been a significant factor in the
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localization of mineralization and is thought to be responsible for

remobilization and depletion of gold.

Oxi dati on effects are very extens ive, typi ca lly extendi ng to
depths of 100 metres or more. Mineralization below the effects of
weathering is characterised by high concentrations of copper and
copper minerals which preclude its treatment in the current milling
ci rcuit.

Initial ore reserves were largely based on the most extensive

and richest gold reef, the Middle Vale Reef (MVR) and to a lesser
extent the Eastern Reefs (El and E2) (Fig. 2). The MVR reef occurs at
the base of a siltstone/shale horizon within the enclosing sandstone
members of the Main Dome structure. The original pyrite mineralization
has been completely oxidised to limonite to a depth of 100 metres with
partial erratic oxidation effects persisting for a further 100 metres.
Additional economic ore exists in two further reef structures, El and
E2 (Fig. 2) best manifested to the east of the MVR reef on the east
side of the Main Dome structure. These reefs are of a lower gold
grade than MVR and are of a less regular, more lensoid nature.

El OUTER SILTSTONE
MEMBER

MALU QUARTZITE

'11.1
SCHEMATIC CROSS -SECTION
EAST FLANK OF MAIN DOME
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The oxidised portions of the MVR reef on the east side of Main
Dome overl i e further mi nera 1i zati on in the footwa 11 sandstone. Gol d
occurrence in this region is of a stockwork nature and extends to ten
to fifteen metres stratigraphically below the MVR.

True thickness of reefs in the Main Dome vary between fifty

centimetres and several metres. Reef di ps vary between 10° and 50°
with the majority reposing at about 30° to 35°.

A second dome structure, West Dome, occurs 3 km from the Main

Dome structure. Extensive, generally lower grade miner~lization of
both a reef and stockwork type has been identified in this area. Reef
mineralization identified has been much less regular in nature and is
not normally as stratiform in character as is the case with Main Dome
MVR. Reefs i denti fi ed at West Dome are almost certainly analogous
with the 'E' reef sequence in Main Dome, but the quartz, and limonitic
staining that is a feature of gold bearing reef in Main Dome is much
more wide-spread in West Dome and does not necessarily indicate gold
bearing ground.

The Telfer geological environment and models of gold mineraliz-

ation have been detailed by others 2.

ORE MINING - OVERVIEW AND EVOLUTION

Over the nine years of project life to date some new mining
methods have been introduced while others have been refined and have
evolved in response to changing circumstances. Before looking at
current methods. in detail the following summarises the significant
factors in project development that have directly influenced mining
methods.

The major geological break-through that allowed project

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start-up was recognition of the strata bound~ reef nature of some of

the gold mineralization~ most significantly the high grade Middle Vale
Reef (MVR) horizon. Initial operations were planned around the MVR
ore located on the east and west flanks of the Main Dome where the
go 1d was contained in a well understood and very regul ar geo1ogi ca1
sett i ng. A seri es of pits were deve1aped to extr.act the MVR with
waste mined by a contractor~ Quest Mining~ and ore mined by Newmont
equipment and personnel. An ore mining technique was developed to
mi ne the di screte gold beari ng hori zon on fi ve metre benches us i ng
skilled dozer operators cutting to pre-set ore batters as defined by
grade control drilling. A buffer or 'selvedge' zone was incorporated
as the demarcation between the waste mining by contractor and the ore
mining by Newmont.

Improved gold prices in the late 1970's allowed a major reassess-

ment of pit designs. The main pit on the east flank~ Pit l~ was
re-designed from an initial depth of 60 metres to a depth of approxi-
mately 110 metres~ encompassing additional E reef ore and all of the
wholly oxidised MVR ore. The services of the waste removal contractor
were retained to remove the large quantity of waste associated with
this pit deepening.

With the drop in gold price in the early 1980's a period of

re-assessment and consolidation began. The long term waste removal
contract was revi ewed and the deci s i on was taken to buy out the
contracting company and integrate all operations under direct Newmont
management. Immediate benefits included rationalization of duplicated
facilities and far greater efficiency and flexibility in mining
operati ons. The resul ts were increased profitabil ity and extended
mine life.

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The project staff includes an on-site geological department

whose brief includes calculating, defining and upgrading ore reserves
in the current mining and associated areas as well as identifying and

assessing regional prospects (within 50kms). Typically this on-going

geological commitment has resulted in reserve tonnes being maintained

or increased annually, after mining, but at lower gold grades than the

depleted ore. With the scenario of lower grades and the eXisting

treatment facilities, profitable ore would have been exhausted in the

early 1990 IS. Investigation of the treatment of lower grade ore

(principally the stockwork mineralization in the footwall sandstone

below the east flank MVR) led to the establishment in mid 1984 of a

trial heap leach project to treat approximately 500,000 tonnes per

annum of marginal mill grade ore. This trial has incorporated full

scale stockwork mining of the MVR footwall material.

On the bas is of data co 11 ected from th is tri a1 trea tment by

1eachi ng was rejected and a deci s i on was made to proceed with an

expansion and modification of the existing treatment facilities to

triple annual capacity to 1.5 million tonnes per annum. This

expansion effects a dramatic increase in mineable reserves since it

allows much lower grade mineralization to be mined and treated at a

profit.

Newmont's first 'outside deposit ' in the Telfer area is being

mined now on a trial basis. It is located approximately 10km from the

mill facilities. A further stage in project evolution is also in

progress now with a feasibility study being carried out to evaluate

mining and treatment of high copper supergene enriched MVR ore below

the east flank MVR designed pit base. Revised treatment and mining

methods are being considered.

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MINING' - GENERAL

All mining to date has been by open cut methods using a working
bench height of between five and ten metres for waste and five metres
for ore. Mining is carried out using front-end loaders (Cat 992C) and
85t rear dump trucks (Cat 777, Terex 33-11) assisted by tracked dozers
(Cat D9H, D9L) together with associated ancillary equipment. Mining
operations are carried out during a five and a half day week on a two
shift basis with eleven hour shifts being the standard. Average total
annua 1 movement (ore and waste) is in excess of 10 mi 11 i on tonnes.
Ore mining is restricted to dayshift only.

All overburden is routinely drilled and blasted with the

exception of material immediately adjacent to the final walls which is
ripped and dozed to minimise wall damage and enhance stability.
Overburden powder factors average O.3kg of explosive per cubic metre
of material broken. ANFO is the primary explosive used.

Ore mining falls into two categories:

reef or 'pseudo' reef ore, and
bulk ore (stockwork mineralization).

Reef ore is mined by dozer if possible. Any ore that is too

hard to rip is drilled using a small drill rig (Atlas 810) and
blasted. This practice is avoided whenever possible due to the
extra dilution normally involved with mining blasted reef. On
average, less than five percent of reef ore is blasted.

In contrast, all bulk or stockwork ore is drilled using the

norma 1 waste ,ri 9s (IRDfv125SPH, GD25C) and blasted us i ng low powder
factors to limit ore displacement.
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REEF MINING

Ore Reserve Calculation

Hanging wall and footwall reef locations are determined for

each reef by an integrated interpretation using gold assays and
geological factors. Gold assays are normally on a half metre basis
from a regular grid of reverse circulation drill holes. Geological
factors assisting interpretation may include colour, lithology, and
quartz content. Where appropriate, dilution in half metre increments
is added to the reef samples. Incorporation of dilution depends on
assay distribution and on the dip and horizontal thickness of a reef.
A minimum horizontal thickness of 2.5 metres is used for reefs that
have a dip too steep to be side-cut (greater than 45°). Final inter-
preted reef outlines are represented on cross sections, long sections,
and bench plans at five metre vertical intervals (top and bottom of
each bench).

Ore reserves are then calculated by a moving average cell

method based on the four nearest reef i ntersecti ons boundi ng a 25
metre block for each five metre bench. This method tends to average
out any very high or very low gold values in any individual reef
intersection. The reserve calculation utilises an in-house programme
on a Data General MP200 computer. This has recently been replaced by
an analogous method on a HP150 desk top system developed within the
GEOMIN Mine Planning Package.

Reserves are tabulated between 25 metre cross sections on a

bench and reef basis on computer spread sheets. This is appropriate
for presentation and allows further manipulation for mine planning
purposes.
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!tU' HANGING WALL CIt£ST

BATTE!t !tAIL

SfLVEOGE HANGING WALL C!tEST

J BATTEI' !tAIL

TO£

FIG. 3

TYPICAL CROSS - SECTION

REEF ORE MINING

r~i ni ng

Once reef ore is in the "proven" category (25m x 12tm nominal

drill spacing) no further grade control drilling is done prior to
mining. Figure 3 illustrates a cross section of a typical single reef
situation incorporating the buffer or "selvedge" zone. The selvedge
toe peg defines the closest limit of drilling for overburden blasting.
Waste ;s stripped to the selvedge toe with a dozer being used to cut
the selvedge hanging wall batter. Batters are defined by batter rails
which are based on the reef bench plans. Surveyors calculate the
required angles and locate the rails, normally on geological cross
sections, at 25m centres. Rails consist of wooden survey stakes fixed
together using plastic cable ties. After forming the selvedge hanging
wall batter and removing all w~ste the ore hanging wall batter is cut,

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removing the selvedge. While the selvedge was initially a demarcation

\'Jaste zone in areas of well defined reef. it has now become an "ad-
2ustment" zone where the geologist and dozer operator working together
can vary the defined ore hanging wall batter to maximise ore extrac-
tiCln. Minor off-sets in the reef bought about by small transverse
faults. and curved rather than planar surfaces can be allowed for.
The skill and experience of both the dozer operator and geologist are
critical in this operation. Factors such as colcur. lithology.
texture. size of gold tail from panning. etc may all be used by the
geologists as aids to ore definition. Assaying of grab samples is not
normally used to define ore during mining operations.

After selvedge removal the ore is cut by dozer and windrowed

out. Dozer operators can side cut batters up to an angle of 45° and
use the corner tip to form steeper batters. Similar geological input
90es into the the footwall ore batter but the scope for adjustments is
limited due to the possibility of footwall slope failures being
induced through undercutting of bedding planes. Stacked ore is loaded
by front-end loader and trucked to thE' mi 11 stockpile. No re-assayi ng
of ore is carried out until it is in the milling circuit.

Ore cutting is under the direct cortrol of the mining foreman

with regular input from the appropriate geologist. Ore cutting plans
(Fi g. 4) are produced and issued to the dozer operator and foreman.
Plans are colour coded showing mill feed ore. low grade. and selved~e

material. All batter rails and survey pegs are similarly marked with
coloured flaggjng tape. All ore and selvedge batter cutting and ore
mining operations are carried out on dayshift only.
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HIGH GRADE

I{}\d LOW GRADE

~'::~'~]
__ , SELVEDGE

,... 4

TYPICAL REEF ORE

CUTTING PLAN
SCALE 1:500

STOCKWORK MINING

Ore Reserves Calculation

As with reef mineralizatior, stockwork drillin~ is normally by

reverse circulation with samples taken every half metre. These
drillhole assays are composited into five metre intervals down the
drillhole to corresrond with bench levels. Each drillhole bench
intercept is then represented by a thickness and grade at the
mid-bench height. At this stage further processing is determined by
the density of drilling and how well the IT'ineralization is understood.
The simplest model consists of square or rectangular blocks around
these individual composites. If further processing is justified,
grades are interpolated onto a smaller, regular mesh of points. Grade
interpolation is based on an ellipse of influence, a skew angle, and
an appropriate distance weighting (normally inverse of distance
squared). This grade mesh then forms the basis for a detailed block
model or for a grade contour based model.
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Commercial packages have been used to generate the above models

on a Data General MV4000 computer and on a HP150 desk top computer.

Reserves are tabulated on a gold grade and bench basis.

Mining

Grade contro 1 for stockwork areas cons i sts of samp1i ng dri 11

cuttings from productior. drill rigs. A typical pattern configuration
would be 7m x 3m staggered with 6 5/8" (l6Omm) holes. Subdrill is
limited wherever practical and would never be greater than O.Sm.
Drilling patterns are oriented in consultation with the geologist to
give the most effective sampling pattern. Holes are drilled using
water for dust suppression rather than the dry dust collector so the
hole collar sample represents all drilled material. A cut is taken
through the drill hole cuttings giving a representative sample of
approximately lOkg or five percent of total cuttings. This sample is
then crushed, ground and split to allow fire assaying in the site
laboratory.

o...-=====......30m

~ HIGH GRADE 'IG. ,

f.::;:?\\] LOW GRADE BULK ORE

~ SELVEDGE CUTTING PLAN
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Ore patterns are blasted using powder factors between 0.25 and
0.30 kg/cubic metre. Hole locations and corresponding gold assays are
plotted and colour contoured to facilitate blocking out of ore areas.
Four categories of material are defined based on gold assay. Where
drilling patterns are regular, block gold grades are simply an arith-
metic average of the individual hole assays contained within the
defined boundary. Erratic high values are cut to a lower value which
depends on the overall assay population. The size and shape of a
mineable block is dictated by the mining equipment used and knowledge
of the orientation and geometry of gold mineralization. Blocks of ore
are pegged and flagged by surveyors and a colour coded cutting plan
given to the foreman and loader operator (Fig. 5). As with reef ore
mining, bulk ore mining is restricted to dayshift hours.

STOCKPILING

Current practice is for all mill feed ore to be stockpiled

adjacent to the primary crusher in a series of radiating stockpile
"fingers" with the crusher as the centre. Up to nine fingers are used
at anyone time to accommodate different ore types and gold grades.
Ore is reclaimed from these stockpiles using a Cat 9928 front-end
loader. A typical reclaim blend will include different proportions of
three or more ore types i r. order to ach i eve budgetted go 1d grade and
maintain optimal treatment characteristics. Some phys i ca 1 and
metallurgical factors that influence treatment include

l. crushing and/or grinding characteristics.

2. moisture content,
3. laterite content.
4. presence of clay minerals, and
5. copper c0ntent (cyanide soluble copper minerals).
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Leach feed ore is mined to a separate stockpile and reclaimed

by loader without any blending.

When the expansion of treatment facilities is completed

b1endi ng of ore types shoul d become 1ess criti ca1. It is proposed

that the bulk of mill feeding will be by direct tipping of ore into
the new primary crusher supplemented by selective loader reclaim to
control grade fluctuations.

t~ill feed stockpile capacity is about ten weeks of feed, a

carry over from the time when the majority of ore came from a single
pit and was exposed by contractor. Stockpile capacity will be reduced
to approximately six weeks of feed at the time of mill expansion.

RECONCILIATION

Global grade and tonnage reconciliation between stockrile

irdicated and actual (mill reconciled) values normally reveals more
gold being produced than reef ore reserves and blasthole assaying
indicates. The favourable reccr.ciliation is probably due to a COITl-

bination of a conservative approach at the time of ore reserve defini-

tion and the sampling method understating gold content. While overall
reconciliation is good there are certainly significent grade vari-
ations within specific pits and specific areas, a typical feature of
most gold mineralization.

Direct comparison for discrete ore parcels is normally not

possible due to the blending carried out during stockpile reclaim.
Hhen a definitive reconciliation of mill feed material is required
'test parcels' of ore averaging twenty to thirty thousand tonnes are
separately mined and treated. This requires careful evaluation of
gold stoc~s in the treatment circuit. Such test parcels are usually
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treated to assess ore from new pits to confirm ore reserve calcula-
tions and identify any specific metallurgical characteristics.

The trial heap leaching exercise has provided an excellent

opportunity for direct reconciliation between blasthole indicated gold
assays Cl.nd mill indic~ted assays. Ore mined from the Pit 1 MVR
footwa 11 stockwork over a peri od of fifteen months had a b1astho 1e
indicated gold grade of 2.24 gft compared with a mill indicated gold
grade of 2.23 gft. A total of 476,000 tonnes was treated. Grade
variations on a monthly basis were not greater than plus or minus five
percent.

CONCLUSION

Mining procedures are continually under review. The high

grade, geologically simple reserves are being depleted and replacement
reserves are of a lower gold grade and are geologically complex.
Under these circumstances the minimization of dilution during mining
will become more critical and will be the key to future profitability
and optimal mine life.

ACKNOWLEDGEf.1ENT

The author wishes to express his appreciation to the Management

of Newmont Holdings Pty. Ltd. for permission to publish this dncument.

REFERENCES

1. Mason, A.A. & Chamberlain, C.C. Telfer - An Open Pit Gold Mine,
Mining Magazine, Vol. 139, No. 2., August 1978, pp 106-113.

2. Tyrwhitt, D.S. Exploration, development and geology of

Telfer gold mine, Great Sandy Desert, Western Australia, from,
Prospecting in Areas of Desert Terrain: papers presented
Rabat, Morocco, 14th to 17th April, 1985, pp 11-19.