REPORT MM 498

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In mining industry, it is vital to get correct production figures as they are presented before stakeholders and different shareholders. At Buzwagi mine, production figures are tracked and recorded on daily basis by using a jigsaw dispatching system and at the end of the month are compared to the monthly surveyed volumes.A big difference has been noticed to exist between the production reports and the survey reports whereas figures reported by dispatcher are higher than those reported by the surveyors.

Text of REPORT MM 498

TABLE OF CONTENTSLIST OF FIGURES ...................................................................................................................................... ii DEFINITION OF TERMS .......................................................................................................................... iii ABBREVIATIONS ..................................................................................................................................... iv 1.0 MINE BACKGROUND AND GENERAL INFORMATION ............................................................... 1 1.1 LOCATION AND ACCESSIBILITY: ............................................................................................... 1 1.2 GEOLOGY AND RESERVES........................................................................................................... 1 2.0 PROBLEM STATEMENT ..................................................................................................................... 3 2.1 MAIN OBJECTIVE............................................................................................................................ 3 2.2 SPECIFIC OBJECTIVES ................................................................................................................... 3 2.3 SCOPE OF THE STUDY ................................................................................................................... 3 3.0 METHODOLOGY ................................................................................................................................. 4 4.0 LITERATURE REVIEW ................................................................................................................. 5

4.1 VOLUME SURVEYING ................................................................................................................... 5 4.1.1 PRINCIPLES OF VOLUME CALCULATION .......................................................................... 5 4.1.2 TRAPEZOIDAL METHOD ........................................................................................................ 6 4.1.3 SIMPSON METHOD ................................................................................................................. 7 4.1.4 DIGITAL CLOSE RANGE PHOTOGRAMMETRY ................................................................. 9 4.1.5 GPS SURVEYING .................................................................................................................... 13 4.1.6 DIGITAL TERRAIN MODEL ( DTM ) ................................................................................... 14 4.2 SHOVEL TRUCK PRODUCTION SYSTEM ................................................................................. 21 4.3 MINE FLEET DISPATCHING SYSTEM ....................................................................................... 23 4.3.1 BENEFITS OF FLEET DISPATCHING .................................................................................. 23 4.3.2 TRUCK DISPATCH SYSTEM ................................................................................................. 23 4.3.3 MANUAL DISPATCHING SYSTEM ...................................................................................... 25 4.4.4 SEMI-AUTOMATED DISPATCHING SYSTEM ................................................................... 25 4.4.5 FULL AUTOMATED DISPATCHING SYSTEM ................................................................... 26 5.0 POSSIBLE SOLUTIONS TO THE PROBLEM .................................................................................. 27 6.0 DATA COLLECTION PLAN .............................................................................................................. 28 7.0 REFERENCES ..................................................................................................................................... 29

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LIST OF FIGURESFIGURE 1 : A map showing the location of Buzwagi mine. ........................................................ 1 FIGURE 2: Coordinate of object points (Pi) by triangulating bundles of observation rays from different image planes (Li)............................................................................................................ 10 FIGURE 3: Conical Stockpile ...................................................................................................... 14 FIGURE 4: Triangles making up TIN that defines the ground model ......................................... 16 FIGURE 5: Thiessen-polygon ...................................................................................................... 19 FIGURE 6: Vonoroi-diagram, Delaunay-triangulation and the empty circle............................... 20 FIGURE 7: Truck dispatch system ............................................................................................... 23

LIST OF TABLES TABLE 1: Action plan .................................................................................................................. 28

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DEFINITION OF TERMSCycle time is a Time used by a machine to complete a single unit of operation. Density is the ratio of the mass of a substance to its volume, and it can be calculated by dividing the mass by the volume. Digital imaging is a method of making images without the use of conventional photographic film. Instead, a machine called scanner records visual information and converts it into a code of ones and zeroes that a computer can read. Fleet is a number of loading and hauling equipment working and managed as single unit Mine dispatch is a center of information between the machines and equipment operation, performance and mine production. Payload is the quantity of load that a truck, or other vehicle that can carry, often expressed in terms of weight or volume. Software is a computer program; instructions that cause the hardware or the machines to do work. Stockpile is a collection and storage of large amounts of material. Surveying is a mathematical science used to determine and delineate the form, extent, and position of features on or beneath the surface of the earth for control purposes. Swell factor is the percentage increase of material volume when are removed from in situ. Terrain is a ground or a piece of land seen in terms of its surface features or general physical character, especially for crossing it. Truck factor is percentage of the rated capacity that a truck is assigned to carry at a particular time and particular conditions.

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ABBREVIATIONS3D Three Dimension BCM Bank Cubic Meter DEM Digital Elevation Model DGM Digital Ground Model DGPS Differential Global Positioning System DHM Digital Height Model DTEM Digital Terrain Elevation Model DTM Digital Terrain Model EDM Electronic Digital Measurement GCP Ground Control Point GNSS Global navigation satellite system GPS Global Positioning System HEX Hydraulic excavator ILRIS- Intelligent Laser Ranging & Imaging System JDS Jigsaw Dispatching System KPI Key Performance Indicator LCD Liquid Crystal Display LCM Loose Cubic Meter MHz Megahertz OHT Off- Highway Truck SAE Society of Automotive Engineers TIN Triangulated Irregular Network UHF Ultra High Frequency VHF Very high Frequency WL Wheel Loader

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1.0 MINE BACKGROUND AND GENERAL INFORMATION1.1 LOCATION AND ACCESSIBILITY: The Buzwagi Project is located in Kahama District, Shinyanga region, in northwest Tanzania. The mine lies on the divide defined by boundaries of the Hindagi river watershed, which drains toward Lake Victoria, and the Kagozi river watershed, which drains toward Lake Tanganyika. The mine is located approximately 6 km east of Kahama town along the tarmac road, and approximately 100 km west of the town of Shinyanga.

Figure 1 : A map showing the location of Buzwagi mine. The Buzwagi open pit is located on land for which Pangea Mineral Limited (PML) acquired a prospecting license in 1992. Between 1995 and 2000, this land was optioned to and explored by Anmercosa Service (East Africa) Limited. In 2003, Pangea initiated its own exploration program. Because of this exploration program, a design was made in 2004 to move the project into development phase and in 2008 started the mining operations.

1.2 GEOLOGY AND RESERVES. Buzwagi is hosted in the Nzega Belt, which consists of the lower portion of the Nyanzian system. This belt is composed of basalts and intermediate volcanic intruded by granitoid masses.1

The regional structure elements are dominated by a deep seated structural trend referred to as the Nzega shear. This shear comprises numerous second and third order structures in which the Buzwagi deposit is likely hosted in one of these supplementary shears. Buzwagi mine operates a single open pit mine; the size of the pit is approximately 0.9 km wide and 1.2 km length. Production began in may 2009, expecting to generate 250 thousand to 260 thousand oz of gold per year in its first full five years of operation. Proven and probable reserves at Buzwagi are 3.3 million oz of gold and 79 million kg (175 million lb) of copper. The expected mine life based upon proven and probable reserves is about 15 years. With continued exploration indicating additional reserves, it is anticipated that the life of mine may be extended.

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PROJECT TITLE: A COMPARISON OF TONS MINED ON A MONTHLY BASIS MEASURED AGAINST THE TONS REPORTED FROM SURVEY VOLUMES AT BUZWAGI GOLD MINE

2.0 PROBLEM STATEMENT

In mining industry, it is vital to get correct production figures as they are presented before stakeholders and different shareholders. At Buzwagi mine, production figures are tracked and recorded on daily basis by using a jigsaw dispatching system and at the end of the month are compared to the monthly surveyed volumes. A big difference has been noticed to exist between the production reports and the survey reports whereas figures reported by dispatc