Mine valuation

T L MATETE
Sampling
Sampling is a process of obtaining a small representative part of a whole rock mass to represent
the whole. The sample is taken for analysis of assay values, mineral composition, texture or a
field specimen. 
Economic mineral deposits are sampled to ascertain the grade of minerals, which is sometimes
decisive for the commercial evaluation of a deposit. This is achieved by taking samples from
mine openings, bore holes and natural exposures. 
The results of sampling furnish the necessary information for determining the mean thickness of
mineral bodies and the average content of the useful constituent therein; they help study the
technical and technological properties of useful minerals, delineate the mineral bodies,
determine correlation of individual constituents and elements in the ore, establish the priority in
mining the minerals, their losses and dilution during exploitation. 
Theory of sampling
Sampling is the process of estimating the mineral content and other physical and chemical characteristics
of a mass of rock by averaging the characteristics in a number of much smaller portions derived from this
mass. The mineral content and other characteristics of the smaller portions are obtained by assaying them
individually.
 
Samples should be equal in mass and be taken at equal distances from one another in order to be truly
representative of their parent body; i.e. their zones of influence must be equal. It is not easy to take
samples from within an ore body and, unless diamond drilling is resorted to, samples are usually taken
from around the perimeter of blocks of ore, particularly in the case of tabular bodies, as is the practise with
most gold, platinum, chrome, antinomy and amosite asbestos deposits within Zimbabwe
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sampling
Sampling may be chemical, mineralogical, technical and technological.
1. Chemical: Samples are taken for determining the content of useful and secondary components.
2. Mineralogical: It is done to ascertain the mineral and petrographical composition of the mineral. It helps to
establish the origin of the deposit, the dependences governing gradevariations and also to plan the ore
dressing and beneficiation.
3. Technical: Samples are taken to study the technical properties of the raw material, whichdoes not require
metallurgical or chemical treatment. Thus in the case of building stone, it istheir bearing capacity, in the case of
asbestos – the length, strength and flexibility of fibres;mica – the size; sand and gravel – grain size distribution,
etc.
4. Technological: Samples are collected for the study of the technological properties of the rawmaterial in the
course of its beneficiation and processing. In the case of coals, for example,
apart from their beneficiation properties, it is necessary to establish their coking qualities and the yield of
liquid products.
sampling
Besides these above-mentioned types of samplings, there exist geophysical sampling, whichenable one to define the
physical properties of rocks and ores without collecting actual samples;and in the case of radioactive and some other ores,
to determine the metal content therein.
The process of sampling falls into several stages:
1. Taking of samples,
2. Their processing,
3. Laboratory studies of the sample (assaying), and
4. Analysis of the laboratory findings.
Purpose of sampling
In order to ascertain whether an ore body is likely to prove to be a workable proposition, it is first necessary to ascertain its
size and value by exposing small portions of ore for sampling by means of pitting, trenching, boring or mining. Assay values
thus obtained are combined with morphological information obtained from maps and surveys to arrive at an overall
estimate of the payable and unpayable mineral reserves in the orebody.
 Sampling methods
The following methods are generally used: point or spot, face or lump, channel or trench, drill orshot
hole, chip and bulk sampling.
Channel sampling: a groove is cut across the strike of the rock formation or ore body/reef using a
diamond saw-cutter. A chisel is then used to chip out the rock material in between the groove. The
samples are collected at standard sample length as governed by the mine standard (classical
geostatistics or geological).This sampling method is most preferred for evaluation and mineral
reserves/resources estimations to chip sampling because is more effective and is auditable.
Chip sampling: this sampling is done by a hammer and a chisel. No groove is cut, it is superficial. This
is mainly used were quick results are needed e.g. in guiding developments and quick grade
evaluations.
Grab sampling: broken muck samples are collected by shovel or hand at certain time intervals, or
sampling intervals, or randomly so as to get the indication of the mineral value of the respective
ground. This method is applied on stockpiles, tramming, drawpoints, hoists, trucks and conveyors.
Grab sampling is often done for grade control purposes.
Core sampling: these are samples obtained from diamond drilling. The sample is measured along the
core run and is split or not split(depending on QAQC standards and purpose) before being sent to
assay laboratory. Core samples are crucial for exploration and evaluation exercises and are reliable.
methods
Sludge sampling: sludge or pulp from jackhammer drilling is collected during drilling at known sample intervals as the hole deepens.
The pulp is assayed and results are used to roughly indicate/delineate the ore body limits on stopes. These results are not used for
mineral reserves/resources estimation due to high possible contamination levels- not reliable.
Bulk sampling: large quantities than normal are collected for analyses, mainly for metallurgical investigation or evaluation(e.g. in
alluvial deposits were mineral distribution are random). Bulk sampling is an essential part of exploration and evaluation of ores. Large
samples are required to check the accuracy of the drill samples and to obtain the needed information on the crushing and grinding
characteristics of the ore as well as for use in detailed and large-scale metallurgical tests. In natural ores, bulk samples give
information regarding the nature and quantities of various sized ore products that can be shipped
Point or Spot Sampling consists of taking a number of equal portions of a mineral at points distributed in a regular grid over a work
face or a mineral exposure. Sampling may be done from a pile of the mined mineral and from mine cars. These samples are, in the
main, destined for chemical assaying. The number of points making up an individual sample depends upon the uniformity of
mineralisation. 
Face or Lump Sampling: This method of sample taking may be referred to the group of point sampling. One to three lumps of rock are
gathered in the face or taken from a pile of broken mineral with the purpose of determining the mineral, and sometimes, also the
chemical composition. Face sampling is a very simple, quick and cheap procedure, but the taking sample is often done subjectively
and for this reason the accuracy of the method is rather low. This type of sampling is employed in lumpwise metallometeric
surveying. Large pieces are occasionally collected for the purpose of determining the physical properties of the mineral.
General sampling procedure
Equipment
Base map/ survey plan with pegs, pan,clinorule, chisel, diamond saw cutter (if channel sampling), 4lb hammer, sample bags, tickets, strings, crayon, paint and brush, canvas bag,
notebook, pen and pencil 
Protective clothing
Overall/ worksuit, goggles, gloves, hardhat, gumboots, caplamp belt
General procedure
Having identified the area to be sampled on plan in the office, gather the necessary equipment and PPE. Inform the Miner in charge of the section when you get into the section of
your intention. This is done so that the area is made safe and resources made available for sampling to proceed e.g. compressed air/ water.
Inspect the area to make sure the workplace is safe, bad hangings are barred down with help of mining official (if any)
Identify the area to be sampled using the reference pegs
Mark out the sampling position and sample lengths using the crayon noting the strike of the shear/ reef. Samples are taken at right-angle to the strike
Cut the groves and chip out the fragments with a chisel
Bag the samples and ticket them
Sketch the sampled area and record the ticket numbers
Securely tie the sample bags and put into the canvas bag and transport to the laboratory
Fill the sample register in duplicate and submit together with samples at the laboratory and keep one for records
 Quality control
In order to control the quality of the assay results several practices are done which include but not limited to the following:
Standard samples, the low and high grade samples at known intervals
Repeats
Check assaying
Statistical Data analyses and recommendations
Core Sample splitting
Sampling standard procedure enforcement and supervision
Training
After assaying the values are plotted on the assay level plan on their rightful positions on space. Hence x,y,z of the sample must
be known. It is this assay information together with geology model that are used for ore reserves estimations and ,mine
planning and scheduling.
 
Sources of error
Contamination- either during sampling, transportation or assaying.
Fatigue
Human error
Laboratory- mix up or machine calibration
Bias toward softer material during chipping or fine material during grab sampling
Salting
Errors in sampling mislead judgement of the information end user, the geologist, and hence the
entire management (mining/ exploration).Hence quality control and quality analyses measures
should be crafted , implemented and enforced to guard against making catastrophic decisions.
Sampling outcrops
One method of sampling is to cut grooves at right angles to the strike across the exposed strata on surface, segregating samples according to
the contrast in appearance of the stratified minerals. If larger samples are required , or if the outcrop is partially or completely covered,
trenching will be necessary, the overburden of top soil being put on one side. In extensive areas where the nature of the ground and soil are
suitable and if expenditure is warranted, a mechanical trencher may be employed to scoop bulk samples.
Open Pit Sampling
The sampling of opencast workings varies according to the nature of the mineral, the conformation of the deposit and the mining programme.
Usually new ore bodies of this kind will have been fully drilled by deep prospect bore – holes and foreseeable reserves thus delimited before
domestic sampling starts.
Sampling the floor of a working open pit is not popular because of debris lying on it but should the method be used, grooves or trenches at
regular intervals may be excavated in one direction at right angles, across the bands or if no banding is apparent along the length and breadth
in a square pattern. If the outlay on continuous trenches is not justified samples could be taken from pits at the corners only of a square grid
pattern.
Also as a rule, it is not easy or safe to attempt to sample the side-walls of an open pit, and domestic sampling for grade purposes is often
therefore carried out by catching the chips and sludge from blasting bore-holes drilled around the periphery of the pit. The taking of grab
samples from the broken ore lying on the ore body, on conveyor belts or from cars and railway trucks is common practise.
In recent years sampling has been facilitated by the use of electronic instruments which measure the concentration of certain minerals at the
pit face, or in the assay office in the place of labourious and more expensive assay procedures.
Sampling a coal mine
Underground sampling practise in coal mines is less standardised than that of gold mines. It may vary as
conditions differ from mine to mine, at greenside colliery of Apex Mines, samplings are made about 65m
apart , a rubber sheet is placed on the floor to catch the fragments that drop. The chipper starts sampling
from the floor upwards, the whole mining height being treated as one sample. Sampling dishes are 20cm in
width to match the width of groove. Samples are placed in 25kg bags.
Sampling a Chrome mine
The initial sampling is usually done by bore-holes drilling and subsequent analysis of cores. Where possible,
the sampling of seams exposed in prospect trenches, tunnels and adits is also undertaken. For this
information, the economic seam width and value decided. Thereafter because of the general consistency of
grade, very little routine underground sampling is done. End product sampling is however, carried out
judiciously by taking regular samples daily from the end – product after it has been loaded onto lorries or
into railway trucks.
Stope sampling
Before the sampling gang goes underground, clear and concise instructions must be given
regarding the locality of the stope face which has to be sampled. A pencil tracing should be
made on the 1:200 stope plan which shows all numbered survey pegs in the vicinity and which
portion of the face is to be sampled.
The general sampling procedure has already been outlined. In stope sampling the location of the
first section to be sampled is determined by measuring half the sampling interval from the top
of the stope face, which must be located from a numbered peg, or, if this is not possible, from
another established position such as the top or bottom of a raise winze connection in the drive.
 
Grade
Proper grade determination for an orebody is difficult and time consuming. “The arithmetic mean is a very inadequate
axiom. Instead of adding up a series of observations and then dividing the sum by the total number of observations,
equal suppositions would have equal consideration if the estimates were multiplied together instead of added. Mother
Nature is not troubled by difficulties of analysis, nor should we.”Lord Keynes
 
Elementary components (observations) consist of orebody sample grades and location. In hard rock formations, these
typically consist of assay results from diamond drill cuttings (sludge), split drill core, and channel samples. Sometimes
these are augmented by bulk sample assays or cuttings from inclined percussion drilling into the walls of exploration
headings. For the sample assay grade to be correct, they must be collected properly and protected from contamination
(or salting) in transit. Except for a major mining company with in-house expertise, a recognized independent laboratory
should perform the assays. The best-recognized laboratory available should be selected to perform periodic check assays.
For foreign projects, all assays, or at least check assays, should be performed domestically.
 
Grade
NOTE
Problems may arise when shipping sample bags to the home country unless they are double tagged (one may be torn off by
baggage handlers) and clearly labelled, “Pure mineral rock samples” to avoid detainment in customs. Once samples are taken, ore
reserves are divided into blocks of convenient size. A grade for each block is determined from samples in and near the block. Each
sample assay used for the block grade determination is assigned a weight. The sum of the weights is one (or 100%). Weights are
dependent on the degree of variation between the samples employed; grade resolution is determined by the application of
statistical analysis to the variations. A geostatical tool, “Variogram,” is typically used to represent the variance of samples with
respect to the distance separating them. The block grade is determined by summing the products obtained from multiplying each
sample grade by its assigned weight.
Blocks not meeting the cut-off grade are removed from the reserve ton calculation. The cut-off grade is traditionally the breakeven
point (neither profit nor loss). Recently, cut-off grade is chosen to ensure a low cost product compared with the cost incurred at
competing mines around the world. When the mine is in production, the cut-off grade may be lowered after the pre-production
capital cost is retired. Cut-off grade may be raised or lowered at any time during mine life depending on prevailing metal prices.
 
 
Grade control
It is the management of mineral reserves and resources to enable sustainability and viability of the mining operation. It involves quality control measures for the ore and waste
blasting and movement, and development and stopes monitoring. Grade control starts from planning and scheduling and taken all the way from directing development and
stoping to the plant head grade.

Dilution is ‘the number one enemy’ hence is avoided as much as possible  

Ways of Grade Control

1. Grab sampling at tramming levels, hoist and conveyor belts and stock piles

2. Management of stock piles (blending and the consumption/depletion rate)

3. Planting of washers in waste material to track waste going into the plant.

4. Monitor the developments and guide into ore

5. Monitor slypings on stopes and benches.

4. Monitoring drilling i.e. whole lengths and inclinations to avoid over breaks, insufficient breaking and dilution.

7. Consider rock mechanics and geological structures in your planning e.g. effects of faults to grade and safety.

8. Draw point control

9. Sorting (normally small scale operations or where ore and waste are distinct).

10. Level controls for open pit

Grade control
Control of Stope Widths
In stoping it is unavoidable that a certain amount of waste is broken. Some of this waste is
included between reef bands but some is mined beyond the margins of the ore body. Grade
estimates allow for a certain amount caused by careless mining, or from unknown sources.
Waste widths shown on sampling records are scrutinized regularly and instructions marked
thereon for any action that has to be taken.
Many gold mines maintain a stoping width bonus incentive system to discourage the mining of
unnecessary waste.
   Case 1 Case 2 Case 3
Stope width 120cm 118cm 118cm
m2 74.0 74.0 75.3

.
Conditions Normal
 
t g/t g
T milled decreased m2 constant
t g/t g
T milled maintained m2 increased
t g/t g

Stoping 239.8 15.0 3597.0 235.8 15.3 3597.0 239.8 15.3 3660.2
Development 18.8 6.0 112.8 18.8 6.0 112.8 18.8 6.0 112.8
Other sources 32.9 32.9 32.9
Shortfall 21.2 21.2 21.2
Hoisted 312.7 3709.8 308.7 3709.8 312.7 3773.0
Sorted 77.6 0.5 38.8 76.6 0.5 38.3 77.6 0.5 38.8
Milled 235.1 15.61 3671.0 232.1 15.82 3671.5 235.1 15.88 3734.2
Saving: 3t @ USD10/t = USD30.00 for Gain in grade 15.88 – 15.61 = 0.27g/t
236t milled. Gain in grade = 15.82 – for235t milled Gain in revenue from
15.61 63.2g les cost of mining 1.3m2
 
= 0.21g/t

The reduction of 2cm in the stope width in case 2 could result in a saving of 3t equivalent to USD30.00 if cost of milling is
USD10/t.
In case 3 more gold is obtained from the additional m2 mined to maintain tonnage lost by the 2cm reduction in stope width; the
grade benefits accordingly but this must be offset by the cost of mining the extra m 2
 dilution
Dilution can be estimated using:

stoping areas

tonnages

width (stope / development)

i.e. broken tonnage or area or width versus orebody size as percentage.

 
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