NEWSLETTER

JUNE 09

BRINGING OUT THE BEST

The Scottish Coal Company Limited is the largest coal producer in Scotland and the largest opencast coal mining company in the UK.
It produces approximately 4 million tonnes of coal per year from sites throughout Scotland. The low sulphur coal is ideal for energy production by all of the major UK power generators. Scottish Coal currently operates several opencast coal sites, employing soil stripping and storage, removal and storage of sub-soils and overburden, exposing the coal seams and allowing extraction of coal. Coal is transported to market by road and rail. The coal moving conveyor belt system at Glentaggart Colliery in South Lanarkshire stretches for over 6.5 km, making it one of the longest conveyor systems in Europe.

Scottish Coal has been using Maptek Vulcan since 1991 for geological modelling and reserving applications. Mining for coal in the UK has become increasingly challenging due to the scarcity of easy coal. Scottish Coal depends on the functionality in Vulcan to help find and extract coal from their deposits in the most economically feasible way. In 2005 Scottish Coal began using Vulcan for strategic and short term mine planning applications. Scottish Coal regularly engages Maptek Technical Services for training and consulting. Scottish Coal has recently begun taking advantage of the new stratigraphic modelling enhancements, and HARP modelling technique, to create geological models of their resources more simply and with even greater accuracy than before. Applications of Vulcan within the Geology department include drillhole correlation, structure, seam horizon and quality modelling, reserve calculations and exploration / infill drillhole planning.

The Engineering department uses Vulcan for detailed mine design, phase design, and reserves by cut / horizon as well as maximum void calculations. Vulcans specialised functionality enables Scottish Coal to develop the most accurate resource models, most efficient pit designs and most cost effective mining schedules. The software allows the users to complete their work with a minimum amount of effort. Vulcan is extremely robust, enabling Scottish Coal to have confidence in the results that have been determined.

IVE USED OTHER MINE PLANNING SOFTWARE PACKAGES AND VULCAN IS BY FAR THE BEST. ITS FAST, EASY, POWERFUL AND HAS ALL OF THE FUNCTIONALITY I NEED. I ALWAYS RECEIVE EXCELLENT SUPPORT FROM MAPTEK.
John Walker, Mining Engineer

> In this issue

HARP models for Scottish Coal I-Site survey at La Coipa, Chile Mine information for business benefits Metadata shapes up for Glendell Mine

>> CONTINUED

CURRENT PROJECT
The primary objective was to work alongside Scottish Coal geologists to produce a stratigraphic model of a deposit with steeply dipping seams, complex fault blocks and areas previously worked by underground mining. A secondary objective was to define an economic mining envelope (based on a target strip ratio and maximum void constraints), and produce a strategic mine plan outlining the preferred mining direction. A final report detailing the forecasted quantities was also required. The decision to use HARP modelling was based on the ability to handle complex geological scenarios with great accuracy. Being able to quickly and accurately quantify zones of previous underground workings, using existing block modelling tools on the HARP model, was an added benefit.

AN EXCELLENT RELATIONSHIP BETWEEN SCOTTISH COAL AND MAPTEK HAS PROVIDED ACCESS TO THE LATEST MINING SOFTWARE TECHNOLOGY, INCREASED THE CORE SKILL SET OF OUR VULCAN USERS AND ALLOWED US TO IMPLEMENT THE LATEST GEOLOGICAL MODELLING AND MINE DESIGN PRACTICES.
David Booth, Technical Services Director

HARP MODELS EXPLAINED

>> Horizon Adaptive Rectangular Prism models are designed specifically for stratigraphic deposits. >> Creating a HARP model is the last of 5 steps in Integrated Stratigraphic Modelling in Vulcan 8, providing a seamless workflow from raw drillhole database to final model. >> HARP models differ from standard block models - blocks are defined by 10 points, automatically registered onto grid or triangulation surfaces used to create the model. >> The extent and rotation of the model are digitised to define fault blocks and quality grids. >> HARP models can be reserved against complex 3D pit designs as easily as simple plan polygons. >> Virtually all the visualisation, grade estimation and manipulation capabilities of Vulcan are available for use with HARP models.

Vulcan has also been used to design and schedule the rehabilitation landscape and predict the maximum overburden storage limits. This has resulted in a full life-of-mine study generated entirely within Vulcan. Scottish Coal can now confidently operate within a complex and challenging deposit. The company is also looking to apply this methodology to key operations of strategic importance, as well as defining prospective deposits.

THE NEW INTEGRATED STRATIGRAPHIC MODELLING OPTIONS ALLOW ME TO GENERATE GEOLOGICAL HORIZONS QUICKLY AND ACCURATELY.
JUNE 09
Pete Wilson, Geologist

BENEFITS OF HARP MODELLING

Virtually no structural resolution is lost between the HARP model and the grids, and complex reverse or normal faulting can be integrated into the HARP structure. Literally thousands of grid files, structural and quality, can be replaced by a single HARP model.

ACCURATE RESULTS
A high quality stratigraphic model has been successfully produced, allowing Scottish Coal to quickly run multiple mining scenarios on the deposit and update remaining reserves during the mining process. The HARP model is able to show, with a high degree of certainty, the most economically feasible area for Scottish Coal to undertake coal extraction.

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MAPTEK FORGE

SAFE SURVEY TECHNOLOGY

Mantos de Oro commenced development of several mineral deposits in the high mountain ranges in the north of Chile in the 1980s; La Coipa being of major importance. It is now one of the Canadian-based Kinross Gold Corporation projects which spread over North and South America and Russia.
La Coipa mine is located in the Maricunga mining belt at an altitude of 4000 metres, 140 km northeast of the city of Copiap and 940 km to the north of Santiago. Mine management, through their Engineering department, requested Maptek to survey the Coipa Norte pit, in order to validate the topography of abandoned sectors with difficult access. A consultancy project began in May 2009 to conduct 3D surveying of the principal gold and silver pit of La Coipa, using the Maptek I-Site 4400LR laser scanning system. The speed of data acquisition allowed scanning not only of the Coipa Norte pit as requested, but also another 2 pits known as Ladera Farelln and Purn, all within 1 day of scanning. A total of 178.5 hectares was covered. Scanning was rapid and safe. From a remote stand-off point, it was possible to capture inaccessible areas inside the pit. A highly detailed model was generated, preserving the exact geometry of wedges, slopes and landslides; accurate volumes were then calculated.

The digital survey models can also be used in geotechnical applications, including the evaluation of designs versus reality, obtaining the angle of real and apparent slopes, and toes and crests. Simultaneous high resolution digital photographs are captured by the I-Site 4400LR scanner. This information can be displayed in I-Site Studio software for realistic, high resolution 3D viewing. The versatility of the I-Site system allows data capture and generation of concrete results in just a few days of work. In this case, the system also had to operate under extreme conditions of high altitude and low temperature.
Thanks to Guillermo Olivares Chief Engineer, Short Term Planning Mantos de Oro

I-SITE 4400LR ADVANTAGES

>> Range up to 700 metres >> Software tools for auto-registration and backsighting >> Built-in compensator for levelling >> Rapid registration of multiple setups for efficient large area coverage >> 37 megapixel panoramic imagery >> Ideal for survey of difficult areas

Panorama and scans of La Coipa deposit in northern Chile provide accurate data for topographic modelling and analysis

MAPTEK FORGE

THE I-SITE SYSTEM ALLOWS DATA CAPTURE AND GENERATION OF CONCRETE RESULTS IN JUST A FEW DAYS, IN THIS CASE UNDER EXTREME CONDITIONS OF HIGH ALTITUDE AND LOW TEMPERATURE.

JUNE 09

TRUE BUSINESS BENEFITS

>> A platform for operational collaboration >> Automated data capture and timely access to production and engineering information >> Puts supervisors in command of events >> Makes vital information available to management >> Customised configuration and dynamic reporting

IMPROVING BUSINESS EFFICIENCY

In the current economic climate, organisations are reviewing operational efficiency. Mining companies are looking at better ways of applying their assets to achieve production and grade targets. Several mines have chosen Maptek MineSuite to further these objectives.
PRODUCT MANAGEMENT
Recently, Newmont Mining Corporation selected MineSuite for implementation at their Leeville and Midas underground gold operations in Nevada, USA. Newmonts key requirements from a Production Management Information System (PMIS) include: Increased productivity and performance by providing shift managers with real-time information on status of equipment, delays and assignments. Improved safety by giving proximity awareness alerts to operators in cabs. Decreased maintenance downtime through accurate reporting, with the ability to receive real-time maintenance information while underground. A platform for ongoing continuous business improvement.

Moreover, Newmont wanted the ability to partner with a vendor interested in solving not only technical needs but also the business requirements of the sites.

The system, which will be implemented in two phases, will eventually span the boundaries of their exposure, extraction, load and haul, as well as selective conveyance and beneficiation processes. It will also make provision for Breakdown Tracking facilities, and an ERP interface with their Preventative Maintenance and Business Warehousing modules. Maptek staff will work closely with these companies to develop and implement the appropriate solution for each operations distinct requirements. MineSuites new Active Web Viewer (AWV) module makes vital information available to management. Instant and easy access to archived end-of-period reports via internet or intranet saves valuable time and equips businesses for effective decision making. The AWV provides for end-of-period reports generated by the MineSuite report writing wizard, as well as dynamic, drill-down reports generated via Microsoft SQL 2005 Reporting Services.

MAPTEK MINESUITE GIVES CONFIDENCE TO MAKE DECISIONS THAT LEAD TO REDUCED COSTS AND GREATER EFFICIENCY.
FLEET AND INFORMATION MANAGEMENT SYSTEMS
Another company, in South Africa, in the process of introducing operational systems at one of their expanding opencast coal operations, has selected MineSuite to: Fulfil their fleet management requirements. Provide for the real-time monitoring and management of product flow. Address their production management information system needs on the operational level spanning their mining executional value chain. The MineSuite Fleet Management System (FMS) will provide for a real-time process control level system, to track, monitor and manage primary production and related product flow via a Central Control Room. The MineSuite PMIS will provide a configurable operational data warehousing and reporting environment residing on the operational level spanning the Dragline, HP Drill Rig, MineSuite FMS, SCADA, LIMS and other process level systems.

ACTIVE WEB VIEWER

Current and historic reports are made widely accessible through a web browser

MAPTEK FORGE

JUNE 09

GLENDELL MINE SHAPING UP

Glendell Mine is a new open cut coal mine in the Hunter Valley. Maptek Vulcan, which was acquired for mine planning, also exports the shape files required for regulatory reporting, saving much time and effort.
Glendell Mine, in the Hunter Valley of New South Wales, is owner operated by Xstrata Coal and forms part of the Mt Owen Complex along with the existing Mt Owen Mine, which is owned by Xstrata and operated by Thiess. Original development consent for Glendell dates back to the 1980s. With changing economic conditions, the project ultimately had three iterations of development consent before mining commenced in April 2008. Glendell is mined using truck and shovel methods. The mining fleet is comprised of 3 Hitachi EX5500 and 2 EX2500 Excavators, 14 Cat 793D XQ and 9 Cat 789C XQ Rear Dump Trucks and Caterpillar auxiliary equipment. Coal is delivered to the existing Mt Owen Coal Preparation Plant for washing before being exported from the Port of Newcastle. Vulcan is the mine planning software used by the Xstrata management team and contractors at Mt Owen Mine, and is applied at Glendell Mine for design and planning, geological modelling, drill and blast design, and survey. As with all coal mines in NSW, Glendell is required by the Coal Mine Health and Safety Regulation (NSW) to submit spatial

mine data to the NSW Department of Primary Industries, Mineral Resources. Traditionally this took the form of hard copy plans known as the mine Record Tracing or RT. Currently, spatial data must be supplied as electronic files in addition to hard copy plans. The data format and periods for reporting are specified in the Survey and Drafting Directions for Mine Surveyors. Digital data must be submitted every 3 months in an ESRI Shape File format; this is closer to Geographic Information System (GIS) files than typical output from mine planning or survey software. Along with point, line and polygon data, each file or theme contains metadata - text attributes providing information about the data. This DPI requirement has led mine planning software providers to add functionality to help operations. Maptek has addressed this need by adding an Export Shape File function in Vulcan. To export shape files, it is necessary to do some initial setup, specifying which metadata attributes will be included for a particular file, as well as the format. It is then straightforward to attach metadata to objects and export shape files suitable for submission to the DPI. For Glendell, it is highly satisfactory to be able to create the required files from within their primary software, without needing to purchase additional 3rd party software, and avoiding the complication of duplicate databases. Vulcan has made what could potentially be a time consuming process into a simple one. Once the hard work of updating the survey data has been completed, it takes only a short time to prepare files for submission.
Thanks to Derrin Lee Mining Surveyor Glendell Mine

REPORTING MADE EASY

Specify metadata

Attach to contours

Assign metadata dialogue

Display results

MAPTEK FORGE

VULCAN HAS MADE A POTENTIALLY TIME CONSUMING PROCESS INTO A SIMPLE ONE....

JUNE 09

NEW CUSTOMERS
VULCAN
AECOM, in Brisbane, Queensland,
has purchased Vulcan GIS Explorer with additional modules. AECOM will use Vulcan for geological and geotechnical modelling, analysis and 3D visualisation of civil, mining and construction projects in NSW, Queensland, Victoria (Australia) and New Zealand.

PELLY CONSTRUCTION, a consulting firm located in Whitehorse, Yukon Territory, Canada, will use Vulcan software for modelling and mine planning. RIO TINTO ENERGY, based in
Brisbane, Queensland, has purchased Vulcan MineModeller with Pit Optimisation modules for long-term strategic mine planning.

Maptek Belo Horizonte office hosted an industry forum in May to showcase our technology, including functionality in new and upcoming release versions of Vulcan and I-Site. The 1 day event covered geology and mine planning applications.

VISIT THE MAPTEK BOOTH

July 6-11 7th International Conference on Geomorphology, Australia & New Zealand Melbourne, Victoria - Booth 2 August 14-16 Australian Institute of Mine Surveyors Perth, Western Australia Technical presentation and Booth August 17-19 7th International Mining Geology Conference Perth, Western Australia - Booth 1 September 21-24 Exposibram 2009 Belo Horizonte, Minas Gerais Brazil October 14-17 Mining Indonesia 2009 Jakarta, Indonesia Booth 5511, Australian Pavilion October 28-31 XXVIII Convencin Internacional de Minera World Trade Center, Veracruz, Mexico Stands 634 and 653

AGRIUM INC. has purchased Vulcan for their Triton Project in Calgary, Canada, and will use it for geological modelling of the underground potash operation. ALAMOS GOLD INC., headquartered in Toronto, Canada, has purchased Vulcan for geostatistics and pit optimisation of properties in Mexico. AMEC, which supplies consulting,
engineering and project management services to energy companies, has chosen Vulcan for mine design and mine planning. Vulcan will be rolled out at multiple sites in the USA and Canada, as well as in Chile.

SKY GOLD, located in Vancouver, British Columbia, has rented Vulcan for consulting work in stratigraphic modelling and mine planning. YAMANA GOLD INC. has purchased Vulcan for exploration of Project Mercedes, an advanced gold exploration project in northern Sonora, Mexico, about 200 km south of Tucson, Arizona, USA.

I-SITE
G & W ENGINEERING, located in Port
Lavaca, Texas, is renting an I-Site 4400 3D laser scanning system for quarterly bauxite stockpile surveys at the Alcoa facility at Port Comfort, Texas, USA.

DATUM HORIZON GEOLOGICAL CONSULTANTS has rented Vulcan for

a variety of consulting projects. Datum is located in Pocatello, Idaho, USA.

RIO TINTO COAL has purchased

an I-Site 4400LR scanning system with mobile mount for the Blair Athol Colliery in the Bowen Basin, Queensland. Blair Athol supplies customers in Asia and Europe with up to 12 million tonnes of coal per year and will use the system to scan in-pit and top of coal seams, stockpiles, and end-of-month survey.

GOLDEN STALLION RESOURCES

will use Vulcan for mine planning at the Minjar Gold Mine in Western Australia.

GRANT HARTFORD CORPORATION

is leasing Vulcan for geological modelling of its historic gold mine in Montana, USA.

Maptek Via del Mar office hosted a course on the application of Geostatistics in Mining during March and April.

GREAT BASIN GOLD LIMITED will

use Vulcan for development, planning, production reporting and reconciliation at the underground Hollister operation located in Winnemucca, Nevada, USA.

www.maptek.com

Maptek Forge newsletter is published quarterly. You can receive it by mail, emailed pdf or emailed link to the Maptek website. Email forge@maptek.com to subscribe or advise changes to contact details. Articles may be reproduced with acknowledgement. 2009 Maptek

Maptek, Vulcan, I-Site, and MineSuite are registered and unregistered trademarks of Maptek Pty Ltd; Maptek Computacin Chile Ltda; Maptek Computacin Chile Ltda, Sucursal Per; Maptek S de RL de CV; Maptek Informtica do Brasil Ltda; and KRJA Systems, Inc. Registered marks are registered in one or more of the following countries: Australia, Brazil, Canada, Chile, Greece, Mexico, Peru, Russia, Spain, UK and USA.