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By D. Imeson, T. Grammatikopoulos, G. Pearse, M. Aghamirian, C. Mohns

"Spodumene mineral is a source of lithium for lithium ion batteries. Thus, the production of a spodumene concentrate with an approximate grade of 6% Li2O is targeted. Traditionally, spodumene is concentrated by froth flotation using fatty acid as the collector. Amine collector can also be used to float mica ahead of spodumene as required or feldspar from the spodumene tailings. Slimes have a negative effect on spodumene flotation and they are commonly separated by scrubbing and de-sliming prior to spodumene flotation. The main losses in spodumene flotation typically occur in cyclone overflow, scrubbing slimes, spodumene flotation tailings and mica concentrate. In recent years, dense media separation (DMS) is the main concentrating process in Australian spodumene operations. In these operations, DMS is efficient at generating coarse grain concentrates and rejecting large portions of silicate gangue, thereby directly reducing the milling cost. The ore should be crushed to 3/8” or coarser while further crushing is possibly necessary on the middling particles to scalp further spodumene. The DMS feed should be classified to remove fines (typically -0.5 mm particles). The final middlings and undersize fractions could then be processed by flotation. The main requirement in DMS operations is to have good spodumene liberation at relatively large grain size. This paper reviews the most significant DMS and flotation parameters in spodumene beneficiation. The treatments of different minerals in the spodumene ore are also addressed.INTRODUCTION A number of laboratory/pilot plant programs have been recently conducted at the SGS Lakefield site, sponsored by different clients. The main objective has been to develop a process flowsheet to generate a spodumene concentrate containing 6.0% or higher Li2O (~75% spodumene) suitable for producing lithium carbonate by a hydrometallurgical process. Depending on spodumene liberation size, dense media separation (DMS) can be an attractive option to produce a final high grade concentrate and to reduce the mass to be treated in the flotation circuit. In such a case, crushing would typically be performed in stages, with DMS separation to recover a spodumene concentrate and reject gangue minerals following each stage. DMS middlings and -0.5 mm fines can be processed by flotation to further recover spodumene. In the flotation process, coarse stage grinding minimizes the grinding cost and formation of slimes. In the majority of cases, a grind size (K80) of approximately 200 microns is sufficient for flotation. After primary grinding, mica, if present in an appreciable amount, should be floated to minimize interference with spodumene flotation. Desliming after scrubbing and high density conditioning are the key process operations prior to spodumene flotation. Spodumene can then be floated from silicate gangue minerals with a fatty acid or a mixture of fatty acid and petroleum sulfonate at slightly alkaline pH. Subsequently, feldspars can then be floated from the spodumene tailings."

Jan 1, 2012

By Robert J. Mitchell

A general approach to mine backfill design, including laboratory testing procedures, is outlined in this paper. Relationships between certain design parameters are developed and the effect of other factors is discussed. It is concluded that the inclusion of backfill design calculations at an early stage of mine design can often produce over-all design economies. Not only are the data needed for backfill plant and tailings disposal area design, but also the pillar recovery method and over-all mine stability are dependent on the attainable fill properties.

Jan 1, 1979

By H. Cay, J. Zachwieja, T. Esplin, R. Ravenelle, T. Olsen-Tank

Barrick Goldstrike mine utilizes a carbon-in-leach (CIL) circuit to simultaneously leach gold into solution with cyanide and adsorb the gold-cyanide complex onto activated carbon for further refinement. If the gold bearing ore contains a significant amount of native carbonaceous material, gold cyanide can be adsorbed at these sites instead of onto the desired activated carbon and the gold is effectively lost to tailings in a detrimental process known as "preg-robbing." The preg-rob effect is considerably reduced by treating the ore with a surfactant, which is hypothesized to adsorb to and passivate the native carbon surfaces. Past laboratory and pilot studies have consistently demonstrated significant gains in gold recovery after treating carbonaceous ore with surfactant. With success in bench and pilot scale testing, a plant trial was conducted at Barrick Goldstrike to evaluate the feasibility of using an alkoxylated fatty amine surfactant (Ethomeen T/12) to aid in the leaching of high preg-robbing ores. This paper analyzes the performance of the surfactant during the plant trial in addition to the problems that occurred during the trial period. Suggestions for improvement are also discussed.

Jan 1, 2014

By Zorigtkhuu Davaanyam, Bern Klein, Stefan Nadolski, Amit Kumar

"The High Pressure Grinding Rolls (HPGR) is a relatively new comminution technology that has been shown to be more energy efficient compared to semi-autogeneous (SAG) mills. Full and fair consideration cannot be given to HPGR-based comminution circuits in early stage projects, because presently pilot scale testing is required for assessing and sizing; pilot scale testing requires bulk samples weighing more than one tonne. A CAMIRO research program was conducted at the University of British Columbia to develop bench scale tests that would reduce the quantity of sample required to assess HPGR.Three test procedures were developed.1. The Direct Calibration Methodology calibrates piston press test results to pilot scale test results such that piston press tests can then be used to determine the energy–size reduction relationship for a range of ore types.2. The Database Calibrated Methodology, which is similar to the Direct Calibration Methodology except that it calibrates piston press tests against a database of pilot scale and piston press tests.3. The Semi-Mechanistic Methodology was developed to use piston press test results as an input for an HPGR based energy-size reduction performance model.Through utilization of these methodologies, the energy–size reduction performance of an HPGR can be predicted with minimal sample requirement. In addition, piston press testing is far more cost effective, faster, and accessible than pilot-scale HPGR testing.IntroductionOne could argue that in the future, decisions regarding selection of comminution circuits will be made primarily on the basis of energy consumption. The following facts and predictions support the argument:"

Jan 1, 2015

By Paul Semple

"In 2007, Noront Resources Inc. discovered the high grade nickel copper PGE deposit in northwestern Ontario in a region now known as the Ring of Fire. Since the initial discovery, Noront has advanced the Eagle¹s Nest Project and in September 2012 released a feasibility study for the development of the Eagle¹s Nest Project. This paper summarizes the results of this recent study and outlines additional work planned in the next stages of project development. INTRODUCTIONThe following paper summarizes the findings of the recently completed feasibility study on Noront Resources Ltd.’s Eagle’s Nest Project. The feasibility study was compiled into a NI 43-101 report by Micon International. This paper is intended to summarize the major technical findings and for complete information, interested parties can find the entire NI 43-101 report at www.norontresources.com or on SEDAR.LOCATIONThe McFaulds Lake project area, which includes the Eagle’s Nest deposit, is located at approximately UTM 5844000 N and 547000 E, and between approximately 52º42’ and 52º50’ N latitude and 86º06’ and 86º24’ W longitude, approximately 250 km west of the community of Attawapiskat on James Bay and 575 km northwest of Timmins. The closest all-season accessible community to the McFaulds Lake project area is Nakina, 300 km to the south, where there is a paved airstrip, in addition to all weather road and railroad access (see Figure 1).The First Nations communities of Webequie and Ogoki/Marten Falls are located 90 km west and 120 km south southeast of McFaulds Lake, respectively. Both communities are served by regularly scheduled air service, primarily from Thunder Bay; both Thunder Bay and Timmins serve as support centres for the James Bay communities and the exploration projects in the area."

Jan 1, 2013

"The first SkimAir flash flotation cell was installed in Outokumpu’s Hammaslahti Copper Concentrator in 1982 to prevent overgrinding of soft sulphides in the milling circuit. Since this first installation the popularity of the flash flotation has fluctuated depending on metal market conditions and regional preferences. Units have been installed in many commodities including copper, lead, gold, PGMs, silver and nickel. Though it has been successfully employed in many operations around the world, flash flotation technology is still not well understood by many in the mining industry. This paper will discuss aspects of flash flotation flowsheet development along with some of the metallurgical and engineering considerations required to successfully incorporate flash flotation into new or existing milling circuits. This paper will also try and debunk some of the myths that exist around flash flotation cells and their operation. Case studies of flash flotation implementation will be discussed.IntroductionModern flash flotation technology was developed several decades ago by Outokumpu, with the first commercial installation of this technology being at the Hammaslahti concentrator in Finland in 1982 (Kallioinen & Niitti, 1985). This was a relatively modestly sized SK80 cell producing final grade copper concentrate directly from the flash flotation cell operating in the grinding circuit. Since that time the size and number of flash flotation cells installed globally has grown considerably to the point where today, it is a widely known application of flotation technology for amenable ores. Owing to their long history in developing the technology, Outotec are the market leader with their SkimAir range of flash flotation cells. Though there is a general awareness of flash flotation process in the mineral processing industry, there is a lack of detailed understanding of the process and the benefits it can provide to new and existing operations."

Jan 1, 2017

By Brad Marchant, Rick Lawrence, David Kratochvil

"BioteQ has successfully developed commercial operations for ARD treatment and selective metal recovery using the patented BioSulphide and Thiopaq® biological reduction technologies. The BioSulphide-Thiopaq process was developed to provide biogenic sulphide for the selective recovery of high purity metal concentrates from acidic wastewater, which are sold to recover capital costs and off-set water treatment costs. The BioSulphide-Thiopaq process can be used on a stand-alone basis or in conjunction with a lime circuit. Process advantages include: selective recovery of metals, very low metal concentrations in effluent, reduced waste sludge liability, reduced lime treatment costs and, in some cases, profitable sale of metal concentrates. Two case studies are presented to illustrate operations focused on metal recovery at the Caribou Mine, New Brunswick, Canada, and at Phelps Dodge, Arizona. A third case study is presented to highlight environmental control as well as metal recovery for treatment of ARD at the Raglan Mine in Northern Quebec. Process flowsheets, capital and operating costs are presented for the three case studies.INTRODUCTIONProtection of water quality has become one of the most important environmental challenges facing the mining industry. Although new mining projects can be designed to minimize impacts to the environment, many existing and abandoned mining operations have water quality problems. The principal cause of water contamination is acid rock drainage (ARD), which is generated when residual sulphide minerals in waste rock, tailings and other mine components and products are exposed to air and water. These reactions can produce acidity and elevated concentrations of metals in drainage and seepage that can adversely affect surface and groundwater resources. To meet regulatory criteria for water quality in the receiving environment, many mine operators must consider treatment of mine water and other effluents prior to discharge."

Jan 1, 2003

By I. M. London, G. P. Hatch

The Canadian Rare Earth Elements Network (CREEN) was formally launched at the Rare Earth Symposium at The Metallurgy and Materials Society of CIM (MetSoc) Conference of Metallurgists in October 2013. CREEN is an industry-led, multi-stakeholder network focused on providing collaborative solutions that will advance Canada’s REE sector to produce a significant proportion of the global production of separated critical rare earth products by 2018. The Network is industry driven by companies with REE projects under development and supported by universities, engineering firms, national and commercial laboratories, and government. CREEN aims to accelerate the development and delivery of timely solutions to technical and economic issues specifically facing Canada’s emerging rare earth sector. It will facilitate partnerships with other national and international organizations to leverage existing research initiatives. It will also support training and education to ensure that the needed qualified human resources are available to achieve the sector’s goals. CREEN membership spans the full rare earth supply chain and technical support organizations, from prospective producers, advanced project developers, national and commercial laboratories, engineering consultants, university researchers, and other innovators. This paper provides an update on CREEN's developing networking and project develop

Jan 1, 2014

By H. C. Counsell, R. Webber

"The mill at Denison Mines' Elliot Lake Operations started up in 1957, with a capacity of 6,000 tons per day. Over the years various plant modifications expanded th.is to 7 500 tons per day. In 1976, management decided to carry out a major expansion of the milling capacity, and during 1980 the grinding capacity was increased to 15,000 tons per day.The original comminution system consisted of a conventional crushing plant feeding minus S/s-inch material to rod and pebble mills, in closed circuit with mechanical classifiers. The key decision that had to be made was whether the expansion should include conventional or autogenous grinding flow sheets.During 1977, extensive pilot plant studies at Lakefield Research showed that two-stage semi-autogenous grinding, with some steel media in the primary mill and with pebble media in the second stage, produced stable grinding conditions. This type of circuit was selected by Denison for the expansion, and went into production in 1980. Primary millThe flow sheet of the semi-autogenous grinding circuit is shown in Figure 1. The primary grinding mill is a Koppers 28 foot by 10 foot mill, driven by a 4,000 h.p. synchronous motor. It is fed with a minus 8-inch run-of-mine ore, and 4-inch grinding balls are added as supplementary grinding media. There are two Koppers 15.5 foot by 22 foot secondary pebble mills, driven with 1500 h.p. synchronous motors. Each grinding stage operates in closed circuit with cyclones, and the primary cyclone overflow is the feed to the secondary mills. The circulating load in the primary stage can be controlled by adjusting the cyclone apexes."

Jan 1, 1984

By Stephen L. Chryssoulis, Stamen Dimov

"Preg-robbing has been known for many years, where increased losses are suffered because dissolved gold is removed from solution by adsorption onto carbonaceous matter. In direct cyanidation circuits it is reasonable to conclude that the preg-robbed gold is either in a gold cyanide [Au(CN) - 2, AuCN] or metallic [Au°] form. However, in circuits with a pre-oxidation step possibilities increase and multiply even further because of water recycle streams containing apparent and not-so-apparent gold ligands. It is in these circuits where speciation of sorbed gold, i.e. the identification of the gold compound, is useful. The importance arises from the fact that proper identification of the sorbed gold species can be used to determine how, when, where and why gold was removed from solution, thereby identifying the exact cause of the problem and providing clues as to how it may be rectified.INTRODUCTIONTo the best of our knowledge, this is the first attempt ever to speciate gold preg-robbed by carbonaceous matter using a surface sensitive microbeam technique. This approach enables the direct determination of gold species sorbed on carbonaceous particulates, opening an entirely new field in the understanding of the chemistry of gold sorption on carbon. The reasoning behind this effort was to add to the current knowledge of the detrimental effect chloride ions have on gold recovery by the pressure oxidation and in particular why in the ensuing CIL step, gold is not being desorbed from the surface of the carbonaceous particles (Table 1)."

Jan 1, 2004

By Brigitte Lacouture, Yeen Shien Hwang, David Lin

"A baseline survey of the partially open lead regrind circuit at Red Dog Mine indicated poor regrind efficiencies for the three parallel 450 HP tower mills. Driven by the high energy cost and the potential metallurgical gain brought by improved mineral liberation, the Red Dog lead regrind circuit was optimized in two stages.In the first optimization stage, different circuit layouts were evaluated in two plant trials. In June 2003, the regrind circuit was changed to a fully closed circuit. This reduced the tower mill requirement from three to two mills. The circuit modification payback was 11 days through power savings alone.The second stage of optimization was the evaluation of reagent addition. To improve pyrite depression, sodium cyanide was added to the feed of the lead regrind tower mills and tested in a series of plant trials over several mill feed stockpiles. Galena selectivity against pyrite was found to improve in these plant trials. Due to environmental sensitivities, no net increase in cyanide addition to the plant occurred and thus no increase in the cyanide concentrations in the tailings pond or the environment will result.The lead regrind optimization work improved the overall lead metallurgical performance and reduced energy and reagent costs. Economic analysis showed that annual profit increased by as much as US$3.0 M."

Jan 1, 2005

By Fidelis T. Suorineni

Rapid drifting enables quicker access to orebodies, higher production rates and a resultant reduction in production cost. The Mining Innovation, Rehabilitation and Applied Research Corporation (MIRARCO) funded by the Canadian Mining Industry Research Organization (CAMIRO) has developed a methodology for safe rapid drift development within the underground metalliferrous mining industry in Canada According to industry survey, about 36% of drift development cycle time is spent on support installation. MIRARCO has developed a methodology for safe rapid drift development based on minimizing time spent on support installation. The methodology includes a critical review of the rockmass classification systems, examination of current support practices in the mining industry and civil tunneling, review of rapid drift development practice in South Africa, introduction of risk hazard procedures to account for material property variability and the development of a WIZARD as a quick decision-making tool for the implementation of the procedures. A comprehensive field data collection procedure was put in place and data collected from various mines to verify and calibrate the support selection rationale. The findings of the research programme resulted in the development of an improved rockmass classification system and showed that construction effects have drastic influence on support levels but is often not accounted for in assessing support levels. Stress effects and structurally controlled failures are the other important factors to take into account in rapid drift development. Three support classes were established for safe rapid drift development as No Systematic Support, Light Support and Strong Support. The support levels took into account cost, rate of installation and safety based on compatibility with ground characteristics. This paper describes the methodology for safe rapid drifting within the underground metalliferrous mining industry in Canada and highlights the key issues and major drivers behind their continued development at the Geomechanics Research Centre within MIRARCO.

May 1, 2004

By C. R. Edwards, J. R. Smith

"INTRODUCTIONThe purpose of this paper is to give an overview of the ALSANDS PROJECT, with emphasis on the approach taken in the design of the Primary Extraction and Froth Treatment Plants.The Alsands Consortium (Table 1) is a Joint Venture of 9 companies formed in 1978, with its prime objective to obtain governmental approval and concomitant suitable commercial terms to build and operate a third oil sands mining and upgrading facility in the Athabasca Oil Sands Deposit.Alsands Energy Limited is the Consortium Manager.The Alsands Project will provide about 10 percent of Canada's forecast crude oil production by 1990, which will be 20,700 cubic metres per day (130,000 barrels/day) of synthetic crude oil plus 1,100 cubic metres per day (7,000 barrels/day) of liquid petroleum gases. To construct Alsands the time required by construction labour, field non-manual and engineering support personnel as well as those trades involved in project-related urban development will total approximately 100,000,000 manhours or 50,000 man years. During regular operations, 4,800 people will be employed by Alsands.Approximately $13 billion will be spent to design, construct and start up the plant by the scheduled 1988 completion date."

Jan 1, 1982

By T. A. Kirk

"The Linatex Dewatering System is a compact, low capital and maintenance cost matched set of processing equipment suitable for solids recovery, dewatering and desliming sand-like materials in the range 3/8"" to 325 mesh ( 1). Since its introduction to North America in the early 1970s, various elements of the system have been successfully installed in a variety of applic11tions both in Canada and the U.S.A. Examples are chosen from the coal, fine aggregates, iron ore and industrial minerals industries.II. Elements of the Linatex Solids Recovery System(A) The Linatex Separator (See Fig.I)The Linatex Separator, which is the heart of the system, is a specialized type of hydrocyclone designed to give a self regulating rope discharge product. It has the familiar cyclone geometry of cylindrical and conical section, tangential inlet, apex and vortex finder. The apex is enclosed in a unique patented automatic underflow regulator consisting of a collapsible rubber sleeve, and the overflow line is a siphon-leg, with a controlled air bleed valve. The siphon leg is adjusted so as to balance the internal negative pressure acting as a closing force on the underflow regulator against the mass of slurry pressing down on it from the cone section of the Separator. With correct adjustment the underflow regulator will close drip-tight on a water only feed. As solids accumulate in the apex of the cone the weight of solids counterbalances the vacuum and cat1ses the underflow regulator to open and discharge classified material at a controlled density."

Jan 1, 1978

A mathematical model of a decision is represented by the table in Figure 4. The numbers in the matrix are a measure of the effectiveness of each alternate for an objective. In this case, it is the per cent of desired profit that is satisfied by each alternate for each objective. By adding all of the values in a row, we have a measure of which alternative is best for both objectives. However, if you think that alternate 1 is necessarily better than alternate 2, you are wrong. Why? Because the weight of the objectives may not be equal. It could just be that this plant can sell more than it can produce, so that the loss in profit represented by increased sales is more than twice as important as reductions in costs. (See Figure 5). In that case, let us weigh objective 1 as 30 per cent and objective 2 as 70 per cent. It must also be obvious that the sum of all the "objective weights" must equal 100 per cent. Now, by evaluating our alternates according to their weights. we find that alternate 2 is better than alternate

Jan 1, 1964

By G. Lipsett, S. Dessureault

Information technology (IT) initiatives in the past have tended to be sold on their ability to maximize resource output and return on capital by allowing assets to be used more effectively and efficiently. Many IT projects fail, not delivering return on their investment. This is known in the IT industry as the “productivity paradox,” where increasing investments in IT do not result in comparable increases in productivity. Experiences and studies of most business sectors reveal that this paradox is rooted in the false assumption that more IT spending automatically results in financial benefit, whereas the benefits are in how effectively IT is used. Most business sectors have accepted that re-engineering of processes is required to gain the full benefits promised of IT. A mining operation has organizational processes similar to most business sectors, but unique operational processes. The lessons of changing business practice in more common business processes, such as inventory control and customer-supplier relationships, can be adequately transposed into a mine setting. The unique operational processes in mines, in turn, require unique redesign efforts. Several enabling information technology opportunities have recently become available, such as more integrated mine production management systems and tactical manager training simulators. This paper reviews some of the latest IT products and outlines the processes and kinds of change that will be required in order to benefit from these new investment options.

Jan 1, 2009

By Adam Moore, Peter Radziszewski, Matt Gallimore

"Stirred mill technology dates back to 1928 where the idea to use “an agitator and spherical grinding media” was presented. In the context of the mining industry, interest in stirred milling technologies has grown over the last 20 years where the typical observation reported inDespite these developments, the tumbling mills are continuing to be used in fine and ultrafine grinding applications. The main reason for this, as communicated at the Canadian Mineral Processors roundtable discussion in 2013, is that the comfort level in understanding stirred milling technologies is not at the level of that of tumbling mills.At CMP 2014, one contribution was made to explore how mill design affects power and energy in a stirred mill. While the 2015 CMP paper explored the application of one scale-up methodology to the Gibraltar case. For the CMP 2016, the aim of this paper is to contribute to increasing the general comfort level with stirred milling technologies by developing a better understanding of the different scale-up methodologies used. This will be accomplished by first completing an overview of the scale-up models found in the literature followed by a review of the different testing and scale-up procedures. This review will be supported by a number of case studies found in the literature. The paper will close with a discussion on some of the challenges that these models and methodologies have and how future research might contribute to overcoming them.IntroductionStirred mill technology dates back to 1928 where the idea to use “an agitator and spherical grinding media” was presented (Stehr, 1988). The year 1948 saw the successful application of Du Pont’s “sand mill” for pigment grinding. Subsequent years have led to the development of different types of stirred mills spanning a number of industries that require fine and ultrafine grinding."

Jan 1, 2016

By J. F. Jackson, R. W. Mau

"The first commercial installation in the mineral industry of the ""Verti-Press"" pressure filter was made by Falconbridge Limited at the Strathcona Concentrator to filter copper concentrate. The filtercake produced contains 6 - 7% H2O, an improvement from the 12 - 13% H2O produced by an internal drum filter, at rates of up to 20 t/hr. A novel slurry feed system incorporates a hose pump and a pressurized slurry accumulator.INTRODUCTIONIncreased copper production from Falconbridge Limited operational mines in the Sudbury Area has exceeded the current refinery capacity. A copper concentrate has been produced to overcome this constraint and has been shipped to custom smelters either as a slurry or as a 12 - 13% moisture filtercake utilizing an internal drum filter.With the treatment of the new Deep Copper Zone from the Strathcona Mine, copper concentrate production was forecast in excess of the installed dewatering capacity. The filtercake was too wet to transport by truck and the custom smelter refused to handle this product at the truck unloading site. The filtercake had to be trucked to a rail spur and transloaded into gondola cars. This system was expensive, incurred unaccountable losses and the concentrate was assessed a moisture penalty.To reduce the concentrate moisture content to permit direct shipment by truck, two basic systems were available; vacuum filter followed by a thermal dryer or a pressure filter. Past experience with the high capital and operating costs of dryers led Falconbridge to closely examine the pressure filter alternative.COPPER CONCENTRATE PRODUCTIONThere are two separate circuits at the Strathcona Mill; one treating nickel ore and the other treating copper ore.The rougher concentrates produced by both circuits are conditioned with lime and cyanide before the copper-nickel separation in a flotation columns. The concentrate consisting of cha lcopyrite with mi nor cubanite is very clean as shown in Table I. Currently 50% of the copper in the plant feed reports as copper concentrate, in the past, this has been as high as 70%."

Jan 1, 1990

By Samuel Frimpong

The interaction of oil sands with a ground articulating pipeline (GAP) system has been simulated with the dynamic model established in this work by combining the multi-body and soil dynamics with the Automatic Dynamic Analysis Mechanical Systems (ADAMS) software. Mathematical models governing the interaction of the GAP system with the oil sand terrain have been modeled based on the theory of multi-body and soil dynamics. These models consist of GAP track-oil sand contact model for generating the contact force between oil sands and track and load-deformation oil sand model for capturing the dynamic behavior of oil sands. A virtual prototype has been created and simulated in the ADAMS environment. The simulation result of the effect of load on oil sand deformation indicates that maximum deformation value increases non-linearly with load varying from 0 to 60t. This study provides a solid foundation for further research and the GAP technology development.

May 1, 2004

By Walter F. Atkins

Fair market value, in the legal sense , is the price which a prudent and knowledgeable buyer and a prudent and knowledgeable seller, acting without constraint or compulsion , will agree upon to exchange an asset. In the ordinary commercial or engineering usage, the term may imply simply the market value or a reasonable and equitable price. The engineer evaluator who is called upon to express an opinion about the fair market value of an asset may be able to base his estimate on the sale price of similar assets or on the market values of stock. Frequently such indicators of value are not available and the evaluator must devise other means of appraisal. Mineral resource properties may be thought of as having value by virtue of the existing or potential ability to produce at a profit. Conventional procedures permit the computation of the present value of future revenues having due regard for the time value of money and the risks attendant upon the realization of the venture. Such computations have gained wide acceptance as a basis for the estimation of fair market value.

Jan 1, 1977