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QG services |
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about us > the QG story
 Our Approach
Quantitative Group (QG) is a specialist mining industry consulting organisation with skills in helping out clients to unlock hidden value in their business. We assist mining operations in extracting the full potential of their biggest assets - the ore body and their people - by focusing on fundamental geological and mine planning practices. We believe while there are a great many similarities, every operation is unique and that this must be reflected in the way the business operates in order to deliver the best business outcome.
QG’s approach is based on our motto “Our Skills on Your Team”. We believe that a core part of our service is to work closely with your people and ensure they have a sound understanding and ownership of the issues. We work as business and technical coaches and mentors with the aim of transferring knowledge and skills in the workplace. This partnership approach is designed to deliver on-going and sustainable benefits.
Our Services
QG’s Directors and Principals have extensive expertise and experience in mining geology and strategic mine planning. QG provides services across a wide variety of resource industry facets including:
• Geostatistics
• Resources and Reserves
• Reconciliation and Grade Control
• Audit and Due Diligence
• Strategic Mine Planning
• Geometallurgical Modelling
• Training and Mentoring
• Mine Geology
In each of these areas, QG’s consultants focus on identifying and unlocking the hidden value associated with the practical application of technical knowledge. The senior management experience of our industry-recognised experts ensures the realistic and sustainable improvements. We are experts in translating from ‘technobabble’ to ‘management speak’ so that you avoid losses associated with miscommunication and misunderstanding.
Geostatistics
QG’s post-graduate trained geostatistical experts can:
• Analyse the geological characteristics of your deposit,
• Determine the key operational drivers of your existing business or proposed project; and
• Provide specialist advice on the most appropriate geostatistical tools to maximise value for the operation.
With choices ranging from estimation to simulation, linear, non-linear, univariate and multivariate, ensuring the right approach for each specific business purpose is vital to your success. We don’t use a black box or one-size-fits-all approach or push proprietary software. Our ability to transfer knowledge as well as skills to you and your people ensures a sustainable, systematic methodology.
Resources
QG’s approach to resource modelling is built on a fundamental belief that a thorough understanding of the geology of your deposit is essential to creating the best resource model. This geological focus to resource modelling means that the starting point for QG resource models is the rocks. In order to create the most appropriate resource model, QG believes that a systematic awareness of the basic geological data (drilling, logging, mapping, sampling and assaying) is essential.
From these basic factual geological building blocks, QG can work with your geological team to develop and test the geological interpretation that forms the basis of the resource model. This approach provides a quantitative understanding of the degrees of geological freedom (and hence risk) at the level of data and geological understanding of the deposit. Once all domains are characterised, resource modelling continues using the most appropriate parameters and methodology dictated by the available data, geological characteristics and downstream uses for the model. QG’s preferred resource modelling approach involves intensive ‘co-pilot’ training of your geological staff to ensure the long term ownership and viability of the model. In our opinion our ability to transfer skills and knowledge is equally as important as the resource model itself.
Reserves
While the resource estimate provides you with detailed knowledge of the in-the-ground nature of the (potential) ore body, it is the ore reserve that forms the basis of your business. Application of appropriate ‘modifying factors’ is critical to gaining a robust understanding of the potential of any zone of mineralisation. Ultimately it is the ore reserve that is mined not the resource model.
QG’s geological and mining expertise ensures that the conversion of your resource to a reserve is based on quality analysis. We believe that multiple scenario analysis of practical mining approaches (methodology and sequencing) is an essential first step in determining the ore reserve. A sound understanding of the proposed marketing strategy, its limits and constraints coupled with a thorough understanding of the ore treatment approach are vital inputs into the optimisation of your mining approach and ore reserve. Our experience across a wide range of commodities in the metalliferous, industrial and coal sectors allows QG to bring ‘outside of the box’ thinking to maximise the overall value of your ore reserve. We have first hand experience with the impact of deleterious elements and the upside associated with by-products.
Our reserve estimation approach includes development of financial analysis of a number of options. Our financial tools can be tailored to suit our clients from the most basic discounted cash flow to options analysis or Monte Carlo based risk analysis.
We believe that the ore reserve is a corner stone of your business. Although ensuring the technical work is completed to the highest standard is obviously important, it is equally essential that you have a complete understanding of the underlying assumptions, decisions and risks associated with an ore reserve evaluation. If your operation capabilities and approach don’t match your ore reserve assumptions it is unlikely that you will deliver the same economic result. Our coaching and mentoring approach ensures that we work with directly with you and your people passing on both the skills and knowledge required for you to own the outcome.
Reconciliation
To make the most of your assets, you need to measure performance. Reconciliation is the fundamental performance measurement tool in the mining industry. Six Sigma, Lean, Statistical Process Control and McKinsey are all based on measuring performance and taking appropriate action to improve on the basis of factual data.
QG believes that thorough and complete reconciliation is an essential tool for every well managed mining operation. Reconciliation is more than simply accounting for material movements or tracking individual business unit performance. The true value of reconciliation is derived by accepting that there will always be differences between various estimates and measurements. The important thing it to understand these differences, monitor and compare performance trends and when necessary take action to address the opportunities that a detailed reconciliation system can identify.
Reconciliation has the potential to make or break your business. You ignore the differences between the performances of different aspects of the mining value chain at your peril. QG have first hand knowledge of the issues that can be created by poor performance monitoring or poor interpretation of the results. Our co-piloting approach is ideally designed to increase the skills of your people in understanding the implications of their reconciliation results and the best way to communicate these results where they matter.
QG can develop reconciliation systems to monitor the performance of the resource, reserve, mining operation, processing system or marketing system or any combination of the above. Our approach to reconciliation is designed to allow you to understand what is ‘noise’ and when you should react to unsatisfactory trends and ‘special cause’ variation. We use the skills QG bring from a geological background to ensure that your sampling and measurement approaches are adequate to allow meaningful analysis and that you are not caught in the meaningless cycle of reacting to noise. More importantly, QG can help you develop the skills to interpret the results of your reconciliation, identify opportunities and take appropriate action.
Grade Control Management Systems
From a value chain perspective, there are few activities that can add (or destroy) more value than at the grade control stage. For underground or open pit mining, the grade control system represents the last opportunity to assign a parcel of material to either a value-generating stream (ore) or a cost-minimisation stream (waste).
Every grade control system results in classification errors. Some material that is truly waste will be sent as ore and some material that is truly ore will be sent as waste. This mis-classification problem is due to the difference between true (and unknown) value and estimated value. At its simplest, decreasing the difference between the estimate used in grade control decision making and the true value of a block of ore will make your grade control system more effective.
In today’s mining industry the ore/waste decision-making process is ever more complex. The number of assumptions behind each grade control decision is increasing. No longer is it simply a question of the precision of an individual grade estimate. Today’s grade control systems must be capable of assigning a destination based on multi-element grade estimates, estimated costs and metallurgical recovery. Each additional layer decreases the precision of the final ore/waste decision.
QG have direct experience in developing and managing complex grade control processes to deliver the required business outcome. In QG’s opinion, grade control consists of an integrated system with a number of stages. Each stage, for example sampling, assaying, estimation, mark-up or excavation, must be considered both individually and as a part of the whole system. Additionally the grade control system must be internally consistent with the base assumptions in your ore reserve and business plan. Our approach to grade control includes educating everyone involved in the process regarding the importance of grade control, the typical cost/value potential of their actions and ensuring the right environment is created for the system to be successful. Grade control must be appropriately integrated with the mine planning, scheduling system and metallurgical systems.
By understanding and improving the fundamental drivers behind your grade control approach, the hidden value associated with poor ore/waste decisions can be uncovered and have an immediate impact on operational performance. Grade control optimisation is a low cost, high value lever that can improve every mining business.
Geometallurgical Modelling
Geometallurgy is an emerging cross-discipline approach that builds on the success of programs such as mine-to-mill. At its simplest, geometallurgical modelling can be described as a process of incorporating ore characterisation and predicted ore treatment behaviours into the models used for grade control and mine planning. By improving the spatial knowledge of metallurgical characteristics and/or proxies for performance during ore treatment, decisions made in both the mining and processing streams can be improved. These improvements can occur at either the operational stage or during feasibility to improve overall organisational design.
Typical geometallurgical parameters include measures or proxies of throughput, recovery, reagent consumption and product quality. By incorporating these factors into your planning system, it is possible to optimise your schedule in terms of tonnes of product produced per shift at a given quality. This can be directly converted into value generated per shift. While conceptually simple, the nature of geometallurgical variables means that a poorly implemented system may result in loss of value or worse, inconsistent decision making that makes reconciliation and performance measurement next to impossible.
QG’s expertise in geometallurgical modelling is based on practical experience at a number of operations. We have a hands-on knowledge of the value and potential cost of implementing this type of approach. Even the relatively simple step of incorporating a metallurgical recovery factor into you planning system can be problematic as many recovery calculation cannot be simply averaged as if they were a grade variable. QG understands the issues associated with geometallurgical modelling and incorporating these factors into your business planning processes. Our core skill of knowledge transfer and coaching is ideally suited to providing you with solutions and improvements that have a lasting beneficial impact on your organisation.
Cut-off / Cut-Over Evaluation
Do you know what drives your cut-off grade/value? How is the boundary between ‘what is ore’ and ‘what is waste’ determined? This is a fundamental question for every mining operation.
At some point, material becomes economically viable to treat and market. There are a number of different ways to estimate a cut-off value, largely driven by:
• The nature of each mining operation;
• The characteristic shape of the grade tonnage curve; and
• The desired business outcomes.
For example, one cut-off may maximise ore reserves at the expense of day-to-day revenue whereas another may maximise day-to-day revenue at the expense of mine life. Which approach is correct for your operation?
To make matters more complex, as well as a cut-off value your operation may operate with multiple cut-over values. These values theoretically determine the timing of ore treatment and marketing with higher value material prioritised.
The combination of geological, mine planning and economic knowledge within QG allows us to offer a comprehensive evaluation of your cut-off strategy. By taking a systematic approach, the cost and impact of different cut-off operating strategies can be evaluated and the risk/benefit of each compared. These fundamental business drivers can change over time given different business environments so developing a comprehensive knowledge of the basic cut-off drivers is essential to your operation.
Strategic Mine Planning
In today’s business environment, it is essential to have a flexible strategy. Day-to-day operations must be optimised to ensure both short term and long term viability. Your actions today should be setting you up for your future success.
QG believes in a business strategy founded on a strong understanding of your resource and other assets. By evaluating multiple future scenarios, the best mining method, sequence and operational size under a number of future business environments can be determined. Using this information, your management team can ensure an appropriately balanced risk/reward profile for the business. When is the right time to invest in what project? Under what circumstances should the business expand or contract? QG’s Directors and Principals can help you make these strategic business decisions with confidence. We use advanced techniques such as linear optimisation and options analysis to identify the potential value of the constraints and decisions you may want to impose on your business. If you have multiple production sources then this approach can clarify the benefits of differing scheduling and investment decisions.
With expertise developed through hands-on province planning and investment strategy development, QG can help formulate the possibilities, identify common paths and ensure your business has the flexibility to succeed in the future. Our mentoring approach is the answer to converting data into information and information into knowledge.
Audit and Due Diligence
Taking the pulse of your organisation is an important health check. QG has the expertise to conduct reviews, audits and due diligence studies to ensure that things are running smoothly or, if not, to identify areas of concern.
QG have core skills and a track record in auditing resource and reserve estimates, mine planning systems and budget/forecast processes. Our approach is to work closely with the client to identify what is working well and what can be improved.
As QG is not affiliated with any mining company or other consultants, we can provide you with a truly independent audit or review. The detail of the audit is controllable and typically ranges form rapid reviews to identify fatal flaws to detailed and in depth audits where the most critical components of your business are replicated using QG’s tools and expertise to verify and validate your outcomes.
For all audits and reviews, QG can provide a written health check using your own risk ranking system or our own internally developed risk matrix approach. This allows you to rank and categorise issues and opportunities identified in order of importance and urgency.
Training, Coaching, Mentoring
QG provides specialist training both as in house or public courses. Our flagship training package is run by John Vann and teaches the ins and outs of geostatistics. Courses can be tailored to the level of expertise of the participants and to suit your own individual operations. Other training courses available from QG include:
• Grade control and reconciliation
• Mine planning for geologists
• Geometallurgical modelling
• Resource risk management
• Management seminars
QG’s co-pilot and coaching approach is designed to ensure skill transfer in every project we complete. Our vision is that through long term continuing relationships, QG’s clients develop greater proficiency and knowledge which in turn has a positive impact on their business. QG have been faculty contributors to a significant program training over 200 senior technical professionals and managers for Rio Tinto during 2006. This training combined change management concepts with technical material on variation and risk in resource estimation and strategic mine planning.
The management experience of QG’s Directors and Principals makes us ideal for facilitating in your strategic planning sessions. We provide high quality presentation and group management skills to get the best from your people. If it’s brainstorming or preparing a business plan we can provide you the skills to keep the focus and deliver a result.
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Scott Jackson (left), Scott Dunham (centre), and John Vann (right) are the Directors of Quantitative Group
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