Search Documents

By B. McKevitt, P. Abbasi

The ion exchange process (IX) is applied in the mining industry for the removal of impurities from process streams, treatment of waste solutions prior to disposal and the recovery of valuable metals. Extensive studies have been performed with the goal of modeling of IX for the case of a single metal loading onto iminodiacetic resin in the hydrogen form. However, in a real system, a resin may be saturated by impurities (iron, calcium, magnesium, manganese), which are then displaced by the metal of interest. The present study provides an insight into the Fe2+ loading process onto iminodiacetic ion exchange resin under the infinite solution volume condition. The study involves the measurement of iron loading under a variety of experimental conditions as well as an attempt to model the loading process using the hybrid correlation advanced by McKevitt (2012). The importance of the experimental and modeling work are discussed in the context of resin in pulp recovery of nickel.

Jan 1, 2014

By C. Gravel, A. Fathi, P. Rivard, G. Ballivy, Z. Moradian, M. Quirion

Knowing shear mechanism of discontinuities under monotonic and cyclic loading conditions is a key factor in stability analysis of rock slopes and rock foundations. In this paper, the effect of cyclic loads on the shear mechanism of joint asperities is described. For this purpose, a fresh tension-split joint from a granite block was used as a reference and thirty five mortar replicas were fabricated. Cyclic shear tests were conducted on replicas under low values of constant normal load (CNL) using a servo-controlled loading system. Tests were performed in two consecutive steps; load-controlled and then displacementcontrolled. In the load controlled part, after initial increase of shear stress to 0.25 MPa, the test was stopped for 2 minutes, then increased to 0.5 MPa, and finally decreased to 0.25 MPa. This process was repeated ten times. At the end, the test was continued up to 10 mm shear displacement under displacement-controlled loading in order to pass the peak shear strength and reach the residual strength. Characterizing joint surface and modeling of involved asperities during the tests was undertaken using a Matlab code developed with new mathematical expressions. The algorithm used in the code is based on three-dimensional coordinates of the scanned joints’ surfaces before and after the test. It was found that a high percentage of degradation happens during the first cycle of loading and during the other cycles, degradation occurs gradually. While comparing tests conducted in monotonic and cyclic loading conditions, it was observed that under low number of cycles, the pronounced mechanism is consolidation of the joint surfaces. This consolidation increases contact areas and, therefore, shear strength parameters.

Jan 1, 2015

By Solar D. Andrés

Several large open pit mines are facing the challenge to design and plan an underground transition to sustain the long term future of their operations. The desired underground method is Block Cave since its natural high productivity and low operating cost that could compete against the open pit cost to mine the final open pit pushbacks. It has been found at several operations where this transition is taking place that the pit limit at which transition is performed is rather deep. This aims to think that perhaps several transition projects have started late in the life of an operation producing an over stress in the transition project and reducing the flexibility in the design of the overall infrastructure and a substantial lost in the complete project NPV. Traditionally the approach to plan open pit underground transition consists of sequentially deciding the final pit using a Lerchs and Grossman type of optimization to find the overall maximum pit shell and then running block cave simulations to find the best footprint for the underground option. The research summarized in this paper is related to the development of an integer linear programming model that aims to compute simultaneously the maximum NPV of the combined option final limit open pit and block cave underground footprint. The model has been tested using two large block models representing two of the current operations in the process of transiting from open pit to underground operations. Finally, the integrated open pit underground transition model is going to be compared to the traditional sequential approach in order to define which method achieves the best NPV. The paper illustrates both case studies in depth.

Oct 1, 2009

By A. Bouchard

"Based on laboratory testwork, a two-stage cleaner / re-cleaner circuit with feed regrind was proposed to replace an existing single-stage middling circuit treating a scavenger concentrate at Inco’s Clarabelle mill. In order to effectively transfer the technology and implement the new flowsheet in the plant, an extensive on-site pilot plant campaign was conducted. After demonstrating the improved metallurgy, the two-stage middlings circuit was successfully implemented at the operation.The present paper describes the on-site pilot plant testwork and the plant metallurgical improvement after implementation of the new middlings circuit. The addition of TETA / Na2S03 greatly enhanced the pentlandite selectivity against pyrrhotite and the two-stage cleaning considerably improved the pentlandite selectivity against rock minerals. The improvement was immediate after the installation of the new middlings circuit. Size by size recovery analysis indicated that a finer regrind would further improve the metallurgy of the new two-stage cleanerhe-cleaner circuit and those modifications are in progress at the mill.INTRODUCTIONThe milling operation at Inco’s Clarabelle mill has been described elsewhere (Kerr and Kipkie, 1985; Agar, 1991). While maximizing the recoveries of chalcopyrite (Cp) and pentlandite (Pn), continuous effort has been directed toward improving pyrrhotite (Po) and rock minerals (Rk) rejection. Inco discovered diethylene triamine (DETA) and triethylene triamine (TETA) (Marticorena, et al., 1994) for pyrrhotite rejection. Falconbridge further improved pyrrhotite rejection using DETA and SO2 (Kelebek, et al., 1995). No special technologies are used in the rejection of rock minerals."

Jan 1, 2001

By M. S. Moats

As smelter feeds become more complex, the impurities that ultimately report to electrorefineries are changing. Many of these impurities collect in the electrolyte and must be controlled. As commercial copper electrorefineries look to expand their capacities by increasing their operating current density, the interaction between electrolyte composition and anode passivation can cause operational difficulties. To improve the industry's understanding of the passivation phenomena, the role of electrolyte composition was evaluated using commercial electrorefining anode samples. The electrolyte composition variables examined were copper, acid, nickel, arsenic, chloride, thiourea and glue. Finally, the role of non-commercially utilized additives, such as bromide and polyethylene glycol were studied. From this investigation, electrolyte parameters that inhibit copper dissolution through copper sulfate precipitation, copper oxide stabilization and/or absorbed species lead to accelerated passivation. Species that prevent passivation have the ability to complex cuprous ions. Possible mechanisms for the role of each.

Jan 1, 2007

By Lisa L. Van Loon, Neil R. Banerjee

Canada is a world leader in uranium exploration, but many deposits are located in remote regions making exploration targeting challenging. Novel approaches are needed to detect the presence of large-scale ore-forming systems and to vector toward mineralization. Boron is commonly used as a key pathfinder element associated with sandstone/unconformity-hosted and basement-hosted uranium deposits in the Athabasca Basin, but the genetic relationship remains uncertain. Alteration assemblages containing boron geochemical anomalies are commonly spatially-associated with – and possibly coeval with – uranium mineralization. Boron is commonly found in tourmaline minerals but in some portions of ore deposits the host mineral for the anomalous boron remains cryptic. Boron coordination chemistry within alteration haloes can better constrain boron host mineralogy, provide insight into the nature of the boron-uranium relationship, and thus has the potential to better constrain targets for exploration. Synchrotron-source X-ray absorption near-edge structure (XANES) spectroscopy is a direct, element-specific analysis that identifies boron coordinated in both trigonally- (BO3) and tetrahedrally-coordinated (BO4) forms. This makes XANES uniquely suited for identifying the geochemical hosts for boron that may be related to hydrothermal ore forming processes. XANES spectroscopy was conducted on whole-rock assay powders from uranium deposits across the Athabasca basin containing boron concentrations ranging from <10 ppm to >10,000 ppm. XANES directly identifies the relative amount of trigonally- (BO3) and tetrahedrally-coordinated (BO4) boron in these complex mineralogical mixtures. Our work suggests a link between boron and uranium that is likely related to the unique physiochemical characteristics of ore bearing fluids that may provide a unique vector to mineralization.

Jan 1, 2020

By L. Cheng, Y. W. Pan, Y. R. Liu

"Impounding deformation of slope and foundation is significant during and post dam construction. Reservoir impoundment is accompanied with various phenomena, including material degradation, effective stress decreasing and buoyancy in rock masses. These phenomena are related with some engineering concerns like reservoir-induced earthquake, landslide and dam stability. The Malpasset dam and Vajont dam are typical hydraulic projects suffering from seepage in dam foundation and slope, which finally led to failure and landslide. Pore pressure in jointed rock masses is considered in constitutive relation. The expression of effective stress for porous rock with fluids is incorporated into the Drucker-Prager criterion. Based on monitoring data of valley width and dam deformation, the effective stress law is applied to analyse the impounding influence of slope and foundation to Jinping-I high arch dam. The dam is accompanied with complicated topographical and geological conditions. The results show that calculated and monitored values agree well, and the application of effective stress law provides an approach to evaluate dam deformation, stress and stability with impounding effect considered.INTRODUCTIONImpounding deformation of slope and foundation is a common and significant problem during dam construction and operation. This phenomenon exists in a lot of reservoirs in China, like Laxiwa, Ertan, Xiluodu and Jinping-I arch dams, and some dams in Europe. It is related with some engineering concerns like reservoir-induced earthquake, landslide and dam stability. The Malpasset dam and Vajont dam are typical hydraulic projects suffering from seepage in dam foundation and slope. Monitored data indicates that the valley width tends to shrink in hydraulic engineering during the impounding process, which will change the stress and deformation of dam and abutment. Therefore, global stability of dam and foundation should be evaluated with impounding process taken into consideration."

Jan 1, 2015

By R. Grau

"After commissioning and start-up of the first 500m3 TankCell® flotation cell in 2014, the over 300m3 mechanical flotation cells have earned their place in large-scale flotation operations. These 500 to 630m3 cells, designed for projects with large throughputs, are proven to provide savings in project capital and operational expenditure through savings in foot print, energy consumption, and less equipment to install and maintain. Addition to savings in different phases of a project, these cells provides operational flexibility and has shown improvements in metallurgical performance. In this paper a case study from Kevitsa TankCell® e500 installation and Buenavista del Cobre TankCell® e630 installations will be given.INTRODUCTION After development (Grönstrand and Bourke, 2008), characterization (Morales et al. 2009; Yanez et al. 2009; Grönstrand at al. 2009), validation (Elgueta et al. 2009; Coleman and Dixon, 2010), and more than 350 industrial installations of the Outotec TankCell® e300 flotation cell, the well proven energy efficient TankCell® product family introduced the TankCell® e500 forced-air flotation cell late June 2012 (Outotec.com, 2012). The introduction of the 500 m3 flotation cell followed by introduction of a 630 m3 flotation cell, TankCell® e630, in October 2014 (Outotec.com, 2014). These large flotation cells are designed for projects with high throughputs where the number of cells needed for operation with smaller equipment would become large. The benefits of this size of flotation cells comes from the lower capital expenditures due to lower equipment costs, savings in plant footprint, less installation work with less auxiliary equipment, lower energy consumption, and less units per installation resulting in less components, spare parts and maintenance.The first TankCell® e500 was commissioned and taken into operation in October 2014 at FQML Kevitsa Cu-Ni-PGE concentrator, nowadays owned by New Boliden. The first TankCell e630 was taken into operation in January 2018 at GrupoMexico’s Buenavista del Cobre Cu-Mo concentrator. The start-ups of the first TankCell® e500 and TankCell® e630 followed with test work where the hydrodynamic performances of the cells were characterized and metallurgical performance studied. The results of the TankCell® e500 test work were presented in detail by Mattsson et al (2015a; 2015b) and TankCell® e630 by Grau et al. 2018. In this paper the metallurgical improvements achieved with the large cell installations will be presented."

Jan 1, 2019

By V. Songmene, R. Khettabi, J. Masounave, R. D. Njoya

L&apos;augmentation régulière des règlements environnementaux et de la sécurité au travail deviennent de plus en plus strictes. L&apos;usinage fait partie des opérations industrielles qui peuvent causer des problèmes de santé au travail et sur l&apos;environnement. La plupart des particules de poussières produites pendant toutes les opérations d&apos;usinage à sec ou lubrifie causent des nuisances environnementales graves. Le travail propose étudie l’influence des paramètres de coupe, des alliages et des états des matériaux sur la formation des copeaux et sur la génération de poussière lors de l&apos;usinage à sec. Deux modes d&apos;usinage (le fraisage et le perçage) sont abordés. Une loi reliant la ténacité des matériaux aux émissions de poussières est proposée. Les effets des matériaux et de leurs conditions, ainsi que des procédés d&apos;usinage sur la génération des poussières ont été mis en évidence. Des mécanismes de formation de poussières sont identifiés et reliés à la formation des copeaux.

Jan 1, 2006

By Shae K. Kim

The aim of this study is to manufacture magnesium alloys with alkaline earth metal oxides (BeO, CaO, MgO or SrO) additions with the objectives of (1) ensuring safety during processing and applications by raising the ignition temperature and reducing oxidation, (2) protecting the environment by reducing or eliminating use of protective gases, (3) maintaining or improving elevated temperature properties with lower amount of Ca or Sr or rare earth metals when compared with conventionally developed high-temperature magnesium alloys, (4) developing cleaner strip casting and continuous casting processes without hot tearing and (5) obtaining all of these objectives without sacrificing mechanical properties or increasing the cost of magnesium alloys.

Jan 1, 2006

By G. Bridgstock, S. S. Forbes, E. M. Elkin

"OPERATIONS at Canadian Cop-per Refiners Limited, since the refinery was established in 1931, have been described in previous papers ( 1,2). Since then the refinery has treated the entire copper output of Noranda Mines Limited and Hudson Bay Mining & Smelting Company Limited. With the commencement of production in 1956 at Gaspe Copper Mines Limited, this copper has also been refined. From the start of operations to the end of 1958, the following had been refined: copper, silver, gold, selenium and tellurium.Construction of new buildings and additions to other buildings have been needed to handle increased receipts. The refining capacity has been increased from 112,000 tons of copper per year to a total of 236,000 tons per year.The refinery is located at Mont-real East, Quebec, close to railway and highway facilities. Incoming materials and shipments, with some small exceptions, are handled by rail. Some finished products are sl1ipped by industrial flatcar to the adjoining plants of Canada Wire & Cable Company Limited and Noranda Copper & Brass Limited."

Jan 1, 1960

By H. Chaouki

The aim of this work is to simulate the forming process of a green anode. For this purpose, a nonlinear compressible viscoelastic constitutive law is presented. The concept of natural reference configuration is considered. Within an isothermal thermodynamic framework, a Helmholtz free energy is proposed to take into account the nonlinear compressible deformation process occurring between natural reference configuration and current configuration. A dissipation potential is introduced in order to characterize the irreversible aspect of compaction process. Thus, the constitutive law is formulated through two equations: 1) an expression of Cauchy stress tensor and 2) a differential equation characterizing the evolution of the natural reference configuration. Material parameters are assumed to be a function of the bulk density. This allows capturing the micro-mechanical phenomena within the chosen macroscopic approach. An experimental study based on compaction tests is carried out in order to characterize the mechanical behaviour of the anode paste. A user&apos;s material VUMAT subroutine for finite element dynamic explicit analysis has been developed and implemented in the ABAQUS commercial software. To evaluate the model predictive capability, numerical simulations of the compaction forming process of anode paste were performed. Simulation results show that the constitutive law predicts the experimental trends and gives interesting physical responses. This constitutes a first step toward making a benchmark with experimental results on the forming process of anode paste.

Jan 1, 2011

By M. Tanaka, H. Narita, K. Morisaku

"The selective separation of palladium (Pd), platinum (Pt), and rhodium (Rh) from a hydrochloric acid solution by solvent extraction was investigated using amide-type extractants, i.e., N,N,N’,N’-tetra-n-octyl-thiodiglycolamide (TDGA) and N-n-hexyl-bis(N-methyl-N-n-octyl-ethylamide) amine (BisAA). The separation experiments employed two separation schemes: (1) extraction of Pd with TDGA and that of Rh and Pt with BisAA; and (2) extraction of Rh, Pd, and Pt with BisAA. Separation scheme 1 achieved the highly selective separation of each metal. For separation scheme 2, Rh can be recovered prior to Pd and Pt, despite having a lower selectivity for Pd/Pt than separation scheme 1. INTRODUCTIONThe recent increase in the use of platinum group metals (PGMs) in industry (especially auto catalysts containing palladium (Pd), platinum (Pt), and rhodium (Rh)) has lead to their increasing waste; therefore, improvements in the recovery techniques for PGM have received significant attention. In metal refineries, PGMs are mainly separated and purified by solvent extraction (Cox, 2004). The extraction process used in INCO’s Acton precious metal refinery is one of the most famous commercial processes and is utilized worldwide. In this process, silver is first removed as a residue (AgCl), and then gold, Pd and Pt are extracted from hydrochloric acid (HCl) solutions using dibutylcarbitol (DBC), dialkylsulfide (DAS), and tri-n-butylphosphate (TBP), respectively. Finally, Rh remains in the raffinate (Barns & Edwards, 1982).The development of a successful solvent extraction process depends on the choice of the appropriate extractants. We have studied the extraction of PGM using N,N-disubstituted amide compounds (Narita, Tanaka, Morisaku, & Abe, 2004; Narita, Tanaka, Morisaku, & Tamura, 2006; Narita, Tanaka, & Morisaku, 2008a, 2008b). They are relatively stable against acids, and their metal extractability can be improved by changing the side chain length and/or introducing additional donor atoms like sulfur and nitrogen. We have recently found that thiodiglycolamide and an amide-containing tertiary amine have good extractabilities for Pd and Rh, respectively."

Jan 1, 2012

By H. C. Gunning

Introduction Considerable attention has of late been attracted to the area surrounding Nimpkish lake, on northern Vancouver island, by the discovery of important rich copper deposits. In less than two years some 200 mineral claims have been staked in a small area, and at least two groups have very promising surface showings. During the summer of 1929, the writer spent one month investigating the general geology and mineral deposits of the region, and, although no detailed work has as yet been done in the field or in the laboratory, the importance of the mineral discoveries and the lack of geological information available to the public warrants a preliminary paper on the district. The district is, from a mining viewpoint, very accessible. Boats from Vancouver call at Englewood, in Beaver cove, four times a week. From Englewood, a first-class logging railway, operated by the Wood, .English Company, extends to the northeast corner of Nimpkish lake. The fifteen-mile trip from the north to the south end of the lake is made by boat, two tugs being maintained by the logging company. The whole trip from Englewood can easily be made in one day. The known mineral deposits lie immediately east of the southern part of the lake, four miles or less from the shore. A fair trail, four miles ? long, leads from the lake to the Nimpkish Copper group. Apart from this trail and an old logging railway grade which follows the east side of Klaanch river for several miles, no trails exist on the southeast side of the lake.

Jan 1, 1930

By O. Worku, J. H. Masliyah, Z. A. Zhou

ABSTRACT The viscosity of concentrated kaolinite or illite clay in aqueous suspensions was measured in the presence and absence of a small amount of montmorillonite (<1 wt%). To avoid solids settling and to increase the sensitivity of the suspension viscosity measurements, solids concentrations higher than 38 wt% were used. The pH of the suspensions and the concentration of calcium and bicarbonate ions were found to significantly impact the viscosity of the clay suspensions. The results showed a significant increase in the viscosity of kaolinite suspensions with the addition of as low as 0.25 wt% of montmorillonite on a solids weight basis. In addition to illustrating the role of water chemistry in modifying slurry rheological properties, our study demonstrated that viscosity measurement could be a simple, yet sensitive technique for determining the content of smectite clays, such as montmorillonite, in a complex mix of various types of clay.

Jan 1, 2012

By Neville Jordison

Indirect, gravity flow, heat exchangers have become a well established technology in mineral and metallurgical process plants. The technology is a conventional heat exchanger using high efficiency plates, with a free flowing bulk solid on one side of the exchanger and a fluid on the other side. This simple concept leads to many opportunities for achieving greater energy efficiencies in process plants. Indirect heat exchange is much more efficient than direct heat exchange using air such as in a fluid bed or rotary device. When air is used directly, large fans are required, it may also be necessary to chill the air, both high consumers of energy. By contrast, using water as the cooling medium requires only low horsepower pumps, typically only 10% of fan HP. Furthermore there are no stack emissions with the requirement for removal of dust or emissions. Indirect heat exchange also creates the opportunity to recover energy. This can work in two ways: energy can be recovered from a hot bulk solid, to heat pressurized hot water for steam generation or preheat air. Alternatively recovered energy from elsewhere in the plant in the form of hot water, steam, air or thermal oil can be used to preheat a bulk solid.

Jan 1, 2011

By The Staff

"IntroductionThe difficulties to be overcome in shaft sinking and development at depth are centred at McIntyre in and around No. 12 shaft. Generally they have been due to increasing pressures and temperatures and to changes in geological structure. This paper describes the difficulties and the measures taken to meet them.No. 12 ShaftEarly in 1932 McIntyre decided to sink an internal shaft from the deepest level, the 3875, to explore and develop known veins extending below that horizon. The location selected was a point 1,500 feet south and 1,000 feet east of No. 11 shaft, the main operating shaft through which the men, ore, and most of the materials are handled Shaft and auxiliary equipment we1e laid out for 3,000 feet, that is to 7,000 feet below the surface. The shaft was to be capable of handling 1,500 tons of ore daily from the lowest level, and was to provide ventilation, compressed air, water, and electric power to service all levels.No. 12 is an internal, vertical shaft extending from the 3875 to the 6825 level and bottoming at 7,007 feet. It is a rectangular, four-compartment shaft, 21 ft. 9¾, in. by 6 ft. 3¾ in. outside the timber (Figure 1).There are two hoisting compartments and one airway compartment, each 4 ft. 10¾ in. by 5 ft. ¾ in. inside dimensions, and a combined manway, pipe, and cable compartment 4 ft. ¼ in. by 5 ft. ¾ in. Levels have been established at 150-foot intervals, pump stations and sumps at 1,000-foot intervals, and. there are two loading pockets, one at the 5525 and the other at the 6900 level.The shaft was sunk in two stages. The first stage, consisting of preparation above the 3875 level and sinking to 5585 feet, was completed by March 31st, 1935. The second stage of deepening the shaft from 5,585 to 7,007 feet was started August lst, 1946, and completed three years later."

Jan 1, 1950

By Richard W. Lawrence, Richard Poulin

"Numerous processes co-exist for metal extraction and for metal removal from effluents of mining operations. Each process enjoys an economic advantage, including environmental cost and benefit, if utilized in a specific situation. This applies equally to biohydrometallurgical processes. This paper will analyze four types of biohydrometallurgical processes for their economic and environmental attributes: biooxidation of refractory gold, extraction of copper from sulfide, metal removal from effluents by active sulfate reduction, and metal removal by the use of wetlands. By examining the economic and environmental advantages of these processes, generalizations can formalized and it becomes possible to define niches of application where biohydrometallurgy can be considered. Our analysis shows that biohydrometallurgy can be efficient at small scale, be more environmentally friendly than conventional technologies and is relatively easier to operate. The higher financial risk associated with unproven technologies at the commercial scale is being eliminated as biotechnology-based plants are put into production.IntroductionBiotechnology can be described as the rational exploitation of the activities of living cells or parts thereof, requiring an integrated multidisciplinary approach between biological and technical disciplines. Microbiology, biochemistry, botany, molecular biology, chemistry and engineering all contribute to practical applications in the extraction, manufacturing and service industries, and in environmental management. Considerable commercial success of biotechnology has been achieved in several sectors, including health care, agriculture, forestry and aquaculture.Over the past 40 years, industry, research organizations, government laboratories, and universities in a large number of countries have participated in investigating the utilization of biotechnology applications in mining. Today, several technologies are used commercially in well understood and engineered systems which can be grouped under the term biohydrometallurgy. Many more technologies have been demonstrated at laboratory or pilot plant scale. Although initial developments and commercial applications were aimed at metal extraction, the dramatic increase in environmental awareness, the practice of sound environmental management demanded by more stringent regulations over the past decade, and the need for low cost treatment in perpetuity, has led to serious investigation of biotechnology for environmental control. In addition, increasing power costs, lowering of ore grades, and decreasing commodity price in real dollar terms require the use of highly efficient and competitive extractive technologies."

Jan 1, 1998

By J. S. Stewart

THIS paper was prompted by a persistent demand for what information we have that will throw light on the oil and gas possibilities of the Maritime Provinces. The problems involved were made familiar to the writer during three seasons of field work in New Brunswick and Nova Scotia. The reasons for renewed interest are: (1) In many parts of that region, the surface is underlain by a thick series of unaltered sedimentary rocks. (2) Oil seepages occur, and oil in commercial quantity has been exploited&apos; near Moncton, New Brunswick, for many years. (3) In recent years, a new method of attack has been developed toward the finding of stratigraphic traps. This method is based on a detailed study of the geological history of the region, as revealed in surface outcrops and samples from deep wells. The well samples show the lateral variation of strata, far from any possible surface outcrop of the same beds. Sufficient work has now been done in the Maritime Provinces to reveal the broad features of the geological history and the character and distribution of the various rock formations. Comparatively little deep drilling has been done in this region, but the holes are widely scattered and the samples from them have added much to the information obtained from the numerous outcrops of bed-rock. The following discussion gives a summary of available information that has a bearing on the subject.

Jan 1, 1943

By Ross D. Lawrence

"IntroductionOne of the methods used when applying the Market Approach to the valuation of a mineral exploration property is known as the Joint Venture Terms Method. The method is particularly useful for the valuation of early-stage exploration properties. Unfortunately, valuators are sometimes imprecise in distinguishing between joint ventures and other types of transactions.At VALMIN '94, Bob Appleyard1 proposed that, if one ignores the time value of money and the probability that the expenditure commitment would be completed, the formula to calculate the value ($V) of a property owned by Party B at the time of the deal would be:$V =$Ex (100-1%)/1% (Formula I)Where $V is the value of the property2Where $E is the expenditure commitment by Party A, andWhere 1% is the percentage property interest to be earned by party A.At PACRIM '99, Mike Lawrence and Graham Dewar3 referred to this method and suggested that there was an ambiguity in the formula proposed by Appleyard in 1994. Mike Lawrence referred to this problem again at VALMIN '014•Lawrence & Dewar suggested that the formulashould be:$V100% =($Ell%) x 100 (Formula 2)Where $V 100% is the value of the entire property,Where $E is the expenditure commitment by Party B, andWhere 1% is the percentage property interest to be earned by Party B.Subsequently, there has been considerable discussion in the AuslMM Bulletin5. In my view, this discussion has touched on a number of useful points, but generally has overlooked one essential element needed for an understanding of the correct application of the N Terms method. That essential element is to understand that there is a material difference between (1) entering into a joint venture arrangement and (2) the purchase of an interest in a property."

Jan 1, 2003