Aggregates Manager Digital Magazine
Issue link: https://read.dmtmag.com/i/124173
OPERATIO Bes 1 2 Balance geology and demand Deposit Exploration – A Sum of All Parts D eposit exploration sounds like a boring topic. Not necessarily an uninteresting topic, mind you, but certainly one filled with tales of drilling bore holes, testing core samples, and analyzing data. In reality, there is a lot more to deposit exploration than just sampling and testing material from potential sites. It's fair to say that when it comes to exploration for aggregate deposits, a number of initial considerations must be addressed up front and almost simultaneously, including geology, existing and potential markets, transportation options, and the zoning and permitting climate. Failure to thoroughly evaluate each of these areas can result in disappointment (and lost revenue) down the road. According to Bill Flanigan, Dallasbased TXI's senior manager for geologic and mine services, the process of deposit exploration is disciplinary in nature. He asks, "What markets are you trying to serve, and what products are you trying to serve that market with?" Once you understand the market situation, geological maps are a great way to start — and understanding the products you're trying to produce will help you to better prioritize potential mining sites. "For instance, the driver for asphalt aggregate will be different than the driver for concrete aggregate, and they are not always interchangeable," Flanigan explains. After identifying market and favor- able geological formations, you must consider zoning, permitting, and other potential environmental constraints, says Dennis Bell, senior geologist with Harrisburg, Pa.-based Skelly and Loy, Inc. "Ask yourself, are there wetlands, streams onsite? What might cause problems down the road in purchasing, developing, and mining a site?" he adds. Transportation, logistics, and infrastructure are other considerations to be addressed. There must be highways and/or rail facilities nearby to get the product to market. Access to the site is important, as well, not only for transportation, but also for power and water. "These (issues) are independent of geology," notes Flanigan. And only after you have answered these questions does putting holes into the ground begin to make sense. "The drilling program backs up the initial geological judgments we make," notes Alan Parks, vice president of Memphis Stone and Gravel Co., Memphis, Tenn. "In the areas that we explore, we have a pretty good idea of where deposits have the best potential to be located because of previous geological studies, but past erosion may have removed or buried these gravel deposits, so the only way to know for sure is to drill." Memphis Stone and Gravel, which mines sand and gravel, has three broad parameters it tries to meet with its drilling program, including the ability of the material to meet specification, the break-even point of stripping overburden, and the yield ratio of gravel to sand. A great deposit in a poor market, or one that is far away from the market, can be as detrimental as a poor deposit in an area with strong market demand. Pay attention to economic indicators for future growth in the area, and be aware of what types of products the given market needs. The driver for asphalt aggregate may be different than the driver for concrete aggregate. The two are not always interchangeable. 4 5 Be a good neighbor Even during the exploration phase, it's critical to be a good neighbor. Take measures to be active in the community. Help stakeholders understand the value of your presence, as you work to address their concerns. When drilling, treat the landowner as part of a long-term relationship right off the bat. Find out about valuable trees, or if crop-growing creates a need for scheduling. Explain up front that some property damage is likely. Keep proactive communication lines open. AGGREGATES MANAGER OperationsIllustrated_AGRM0513.indd 20 4/18/13 10:46 AM