EXPLORATION AND MINING GEOLOGY JOURNAL

EMG
Volume 9, No. 1 (January 2000)

Fifty-year trends in minerals discovery — Commodity and ore-type targets
C. Blain

Estimation and reporting of mineral resources for coarse gold-bearing veins
S.C. Dominy, G.F. Johansen, B.W. Cuffley, I.M. Platten and A.E. Annels

Simulation — An approach to risk analysis in coal mining
J.F. Costa, A.C. Zingano and J.C. Koppe

Cu-Au skarn mineralization, Minas de Oro district, Honduras, Central America
J. Drobe and R.M. Cann

The Midas Pond gold prospect, Victoria Lake Group, CentralNewfoundland: A mesothermal quartz vein system with epithermal characteristics
D.T.W. Evans and D.H.C. Wilton

Fifty-year Trends in Minerals Discovery — Commodity and Ore-type Targets
C. Blain

Abstract — Based upon an extensive database, this paper analyzes the record of modern mineral exploration success and establishes the 50-year trends in discovery.
The record clearly shows that the overall discovery rate rose during the 1950s and 1960s, peaked in the 1980s, and fell during the 1980s and 1990s. By commodity and ore-type target, the pattern of discovery is not continuous. Typically, it is episodic as a series of waves with minor resurgence. The waves reflect the order of the so-called discovery booms, led by uranium, then nickel, and copper, polymetallic base metals and gold. With the possible exception of gold, the discovery booms appear to be independent of metal price, although favorable perceptions of the price outlook may well have initiated the boom or led resurgence.
Although difficult to quantify, an emerging trend in modern discovery is the integration of several detection techniques into the search process. No doubt, this trend will continue as orebodies become more and more difficult to find.
The record of the past two decades shows that greenfield discovery rates have progressively fallen even though the level of investment in exploration has risen to an all-time high. This trend reflects increasing discovery risk. Several factors are contributing to this trend. Perhaps the two most important are: (1) deteriorating economics as increasing real costs and decreasing real prices continue to raise the economic hurdles for minimum acceptable exploration targets, and (2) increasing exploration maturity in many search terrains, particularly those in the traditional regions of North America and Australasia. To succeed cost-effectively in this new environment of increasing discovery risk will require extraordinary creativity, innovation, and technical skill coupled with commercial discipline.

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Estimation and Reporting of Mineral Resources for Coarse Gold-bearing Veins
S.C. Dominy, G.F. Johansen, B.W. Cuffley, I.M. Platten and A.E. Annels

Abstract — Coarse gold-bearing veins are characterized by high grades that are localized and erratic. Effective sampling of coarse gold-bearing veins is difficult because of the low concentration and erratic nature of the gold particles. Diamond drilling is an effective measure of geological continuity, however, grade distribution can only be reliably obtained from underground development (including close-spaced sampling, bulk sampling, and trial mining). Comparison between surface and underground drilling, underground linear/panel and bulk sampling indicate that drilling and linear/panel samples generally understate bulk sample grades. Bulk samples are likely to be the closest estimators of true grade. It is unlikely that anything above an Inferred Resource category can be estimated from surface drilling alone, and at best the grade will only be a global estimate. Underground development, in-fill drilling and bulk sampling/trial mining will be required to delineate Indicated and Measured Resources. Closely spaced development and bulk sampling is likely to be the only way to determine Reserves. The resource estimation process must driven by a clear geological model that should attempt to understand both geological and grade continuity. Traditionally, grade interpolation has been undertaken using classical methods, though more recently, computer-based block modelling techniques have been used with some success. Three case histories are presented, documenting the problems of estimating resources in coarse gold-bearing veins and the practical ways in which they were approached.

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Simulation — An Approach to Risk Analysis in Coal Mining
F. Costa, A.C. Zingano and J.C. Koppe

Abstract — Traditional mine planning based on block models built with interpolation techniques such as kriging does not take into account the uncertainty associated with the estimates. These models are inadequate for short-range mine planning. In contrast, conditionally simulated models reproduce the actual variability (histogram) and spatial continuity (variogram) of the attributes of interest. Conditional simulation can be used to address the problem of measuring the uncertainty associated with an estimate. This paper outlines how the sequential Gaussian conditional simulation algorithm can be used to assess uncertainty of grade estimates and also illustrates how simulated models can be incorporated into mine planning and scheduling. A case study demonstrates the efficiency of the method in assessing risk associated with geological and engineering variables.

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Cu-Au Skarn Mineralization, Minas de Oro District,Honduras, Central America
J. Drobe and R.M. Cann

Abstract — The Minas de Oro Cu-Au skarn and replacement deposits are located in the highlands of central Honduras, 90 km north-northwest of the capital of Tegucigalpa.
The deposits formed in Cretaceous volcano-sedimentary rocks following the emplacement of an early Paleocene granodiorite to dacite intrusive complex. Three types of skarn (Type IA, IB, and IC) and a low-temperature replacement mineralization (Type II) are recognized. Type IA skarn consists of massive brown-green andradite and lesser magnetite and pyroxene. Type IB skarn has magnetite + hematite as the main constituent and garnet <50%. Type IC skarn comprises >50% pyrrhotite + chalcopyrite with interstitial garnet or pyroxene. Au and Cu occur in potentially economic concentrations in all skarn types while other metals such as Ag, Pb, Zn, and Mo are locally present in significant quantities. The highly variable distribution and nature of the skarn deposits is controlled by: (1) intrusive activity, (2) composition of host rocks, (3) faulting and fracturing, and (4) attitude of host carbonates.
Type II Au-Cu-As mineralization occurs in calcareous sandstone and conglomerate 2 km distal from skarns and comprises clots of Cu sulfides hosted within a zone of brecciation and quartz flooding. Garnet and/or magnetite skarn is not present and the mineralizing event appears to have been a low-temperature replacement type.
The similarity of coeval Au-Cu-Fe skarns in central Guerrero, southern Mexico to Minas de Oro skarns, and the similar local stratigraphy is consistent with the generally accepted theory that the Chortis block originated from southern Mexico and during the Tertiary moved southeast to its present position.

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The Midas Pond Gold Prospect, Victoria Lake Group, Central Newfoundland: A Mesothermal Quartz Vein System with Epithermal Characteristics
D.T.W. Evans and D.H.C. Wilton

Abstract — The Midas Pond gold prospect, central Newfoundland, is hosted by sheared and altered felsic and mafic pyroclastic rocks of the Tulks Hill volcanics, Victoria Lake Group, and has been trenched and tested by 19 diamond-drill holes. Gold values are sporadic, with the best diamond-drill intersection assaying 7.3 g/t over 0.9 m, and the highest grade channel sample containing 14.7 g/t over 1.15 m. Alteration and mineralization are confined to a 200 m wide brittle-ductile shear zone. This shear zone formed in response to regional D1 deformation, and the shear zone fabric parallels the regional S1 foliation. D2 deformation resulted in broad Z-shaped flexuring of the shear zone. The deformation was probably related to the ca. 396 Ma to 420 Ma Salinic Orogeny.
Advanced argillic alteration and an extensive halo of Fe-carbonate and pyrite surround the gold mineralization. Alteration minerals include pyrophyllite, paragonite, quartz, plagioclase, chlorite, fluorite, Fe-carbonate, and pyrite. As such, the alteration seems to reflect combined epithermal (argillic) and mesothermal (carbonate) mineralizing environments. The argillic alteration and fluorite represent a regional hydrothermal effect on the felsic volcanic rocks; whereas, the Fe-carbonate and pyrite represent a mesothermal alteration associated with auriferous quartz veins.
The Au, which is spatially associated with pyrite, occurs in three structurally-controlled vein sets. These veins are confined to the contact between a highly deformed breccia (the banded mafic tuff) and structurally overlying, altered felsic tuffaceous rocks. The vein sets include: V1 boudinage veins that parallel the shear-zone fabric (C-shear veins), and V2 and V3 extensional fracture veins which are controlled by an S2 fracture cleavage. V1 veins are the earliest and contain the lowest concentrations of Au. V2 and V3 veins are concentrated within the hinges of the D2 flexures.
Pb isotope data for galena separates indicate that the Pb in the vein systems was probably of local derivation. Sulfur, C, and O isotope data for mineral separates are similar to data for typical mesothermal lode gold deposits. Fluid inclusion data suggest the presence of at least three hydrothermal fluid types in the region, viz., (1) an early saline fluid which produced the argillic alteration, (2) a CO2-bearing fluid directly related to the auriferous mineralization, and (3) H2O-NaCl fluids which flowed through the Midas Pond shear zone at a lateral distance from the zone of mineralization. The mineralizing fluids are interpreted to have been CO3-2-rich types which originated through metamorphic dehydration and decarbonation of mixed island-arc and continental crustal rocks. Gold precipitation resulted from the reaction of these fluids with the Fe-rich breccia unit. Pre-existing and simultaneously crystallizing pyrite served as loci for Au precipitation.

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