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By F. Kapeller, G. Herget

"The need for monitoring the effect of changes in ground stresses due to mining in hard rock has existed for many years. The Mining Research Laboratories of CANMET, EMR have developed a new tool which monitors with high precision the radial deformation in boreholes. The result is the Mining Research Laboratories strain monitoring system (MSMS) which uses the highly stable and very sensitive vibrating wire principle to monitor deformations in relatively large boreholes, e.g. 76 mm to 153 mm diameter.The vibrating wire is strung across a relatively large proving ring and operates at a frequency between 600 to 1800 Hz. The read-out system is based on continuous vibration.The ring is installed with a hydraulic tool and brought into contact with the surrounding rock through precisely machined and guided wedges. The resolution of the system is in the neighbourhood of 4 x 10-4 min/ Hz. The data collection can be carried out with a portable read-out unit and provisions are available for automatic data collection. Stresses may be calculated from strain readings.The system was tested in cooperation with the Centre de recherches minérales at the Niobec Mine in Quebec for the purpose of monitoring the effects of drill drift development and slope mining on surrounding ground stresses.After access was available to the site, 153 mm diameter holes were drilled for the determination of in situ ground stresses. These holes were then used to install the strain monitoring system. The effect of drill drift development and production blasting in stopes C-203-13 and C-203-15 on ground stress distribution could be observed clearly.The horizontal relaxation in the core of a pillar which occurred during mining of adjacent rooms was between 0.082 mm to 0.111 mm. Calculations of stresses from these deformations indicate that the rock material is still in an elastic condition.Roctest of Montreal has obtained a license on the manufacturing and distribution rights. A patent has been registered and CANMET will assist in installation of the MRL strain monitoring system and the interpretation of records."

Jan 1, 1989

By W. P. Clement, M. C. Bell

"PT International Nickel Indonesia, a subsidiary of Inco Limited, mines and processes nickel laterite ores for the supply of nickel matte, primarily to the Japanese market. It has large ore reserves and a substantial portion of its energy requirement is supplied from its own hydro-electric plant. Since the early 1980s, the company has increased its production level and has dramatically reduced its unit costs. Projects are in progress to further decrease costs and recently a major expansion - 31% increase in nominal capacity - has been undertaken, consistent with marketing opportunity in Japan. The expansion project, which has a low capital cost per unit of production, is outlined in this paper.IntroductionPT Inco is a fully integrated mining and smelting facility located in Indonesia on the island of Sulawesi, and is based on a very large, world class nickel laterite orebody located 60 km inland from the Gulf of Bone. Construction of a single furnace line plant started in 1973. Complete supporting infrastructure of townsite, hospital, schools, shopping centres, road systems, and an airport, all had to be built. Prior to completing the first phase, the decision to expand the plant to a three kiln-furnace line was made. A major factor in the decision was the ability to develop the hydroelectric potential of the nearby Larona River. This involved construction of a 30 m high dam, and a 7 km surface canal to the generating station. The penstocks drop 150m to three 55 Mw turbines. The power generated is sufficient to supply the entire electrical load for the complete smelting complex and town site. The unique capability to supply the high smelting energy requirements for a lateritic nickel ore by fully captive hydro power, has, over the past decade insulated PT Inco from the large upward swings in oil prices suffered by other lateritic nickel producers.Wet ore is first partially dried to 20% moisture in two co-currently fired rotary driers, screened on an internal trommel, and delivered to two dry ore storage buildings. The partially dried ore is calcined at 750°C and partially reduced in three large 100 m by 5.5 m kilns. Reduction is accomplished by lancing bunker C oil onto the ore bed at the discharge end of the kiln. The kilns are equipped with five air pipes with onboard blowers to gradually bum the combustible gases generated by the lance oil. The kilns were also originally equipped with two side burners to supply additional heat close to the feed end of the kiln. Calcined ore is transferred by 20 ton refractory lined containers to the furnace feed bins at the top of the smelter. Smelting is carried out in three 18 m diameter furnaces powered by 45 Mw transformers. Slag is skimmed at 1550°C through water cooled breast plates and removed to the slag dump by Haulmaster Carriers. Matte of 25% Ni, 1O% S, 65% Fe is tapped at 1350°C into the converter aisle. The iron is slagged in converters to produce a nickel sulphide matte at 80% Ni. Three rotary Kaldo converters were initially installed. The product matte is granulated, dried, and shipped in returnable rubber bags to Japan. Most of the matte is fluid-bed roasted to nickel oxide and then directly reduced in a second reducing fluid bed reactor at our facilities in Japan.The smelting complex was designed to smelt two million tonnes of dry ore per year, equivalent to 34 000 tonne nickel production at an ore grade of 2% Ni. The cost of the entire project including working capital was $900 million."

Jan 1, 1990

By K. Musgrave, E. Solis

"This paper tells the story of how the Dome Mine in South Porcupine increased its maintenance effectiveness and reduced its maintenance costs in two phases. In the first phase, a maintenance audit was conducted, and the results led to some changes that improved maintenance, especially in the underground equipment area. The audit methods, and the changes made will be reviewed. In the second phase, management made changes in the maintenance organization and methods, following a prolonged strike during which management operated the mine. These changes were in part the result of insights learned from their hands-on operating experience. IntroductionEarly in 1989 the Dome Mine of Placer Dome Inc. in South Porcupine, Ontario, decided to improve the effectiveness of the Plant Department. The Plant Department was centralized, except for a mill mechanical crew, and serviced all operations, a townsite of 120 houses, a curling rink, and an arena. The department also operated the powerhouse, the hoists, the mine dry and provided mechanical/ electrical engineer services.At that time the Dome Mine, located in the east end of the city of Timmins and Canada's first large gold mine originally discovered in 1909, was producing about 3500 tons of ore per day with about 742 employees. Over the 83 years of continuous operation of Dome over 50 million short tons of gold ore have been processed. The Plant Department consisted of 156 hourly and 24 staff employees. At present, the mine is producing 4000 tons of ore per day with a total of 341 employees on the payroll. The Plant Department consists of 80 hourly-rated and 18 staff employees."

Jan 1, 1993

By Y. Wang, J. D. Miller, C. L. Lin, Virginia Tech

Conventional flotation machines are typically limited to a particle topsize of 150-200 microns due to inherent constraints created by the pulp and froth phases. To overcome these limitations, a novel fluidized-bed flotation system called the HydroFloatTM Separator has been developed specifically for the purpose of floating coarse particles containing only small amounts of exposed hydrophobic minerals. Over the last decade, this technology has been successfully applied to industrial minerals with several full-scale units installed to recover particles up to and exceeding 3,000 microns diameter. More recently, sulfidebased test work has shown that this novel device is also capable of recovering metalliferous values at a grind size that is much coarser than currently used in industrial concentrators. In the current study, high resolution X-ray microtomography (HRXMT) was used to experimentally compare the degree of exposed grain surface area necessary to recover coarse particles using the HydroFloatTM technology to that attainable using a traditional mechanical flotation cell. The data indicate that exposed grain surface area is a critical factor for coarse particle flotation. For the gold-bearing sulfide ore examined in this study, the HRXMT data suggest that near complete recoveries of coarse (850x500 µm) multiphase particles containing as little as 1% exposed grain surface area were realistically attainable using the HydroFloatTM technology. As such, this new technology may offer a unique opportunity for increasing concentrator capacity by increasing the primary grind size needed for rougher/scavenger separations.

Jan 1, 2016

By Lynne Bowen

"On the da y shift in Number One Mine at Nanaimo on Vancouver Island, on May 3, 1887, William Griffiths, a coal miner with many years experience, fired a shot to advance the face of the crosscut. A flame ran out for a distance of fifteen feet along the roof and then extended up the slope for ten to twelve feet, and although many would have called this a blowing out shot, Griffiths said it was just a feeder. ""A blower"", he said, ""would have caused an explosion."" 1There was no explosion. Griffiths reported gas and the area was cleared for three hours and then work resumed. When the shift changed at 3:00 p.m., the fireman reported all places clear of gas and the ventilation good.2The ventilation in Number One Mine was the best anyone had ever seen. The air in the mine was almost too cold. The current was so strong that it sometimes blew out the flame on the miners' fish oil lamps. It delivered five to six hundred cubic feet of air for every man and animal working in the mine. The law required only one hundred cubic feet 3The miners considered Number One to be relatively safe. The manager was proud of the mine and its up-to-date equipment"". Recently, there had been reports from France and America about the explosiveness of coal dust, but the manager did not think his mine was sufficiently dusty to be dangerous.5 The dust lay thick on the floor of the mine. Sometimes when a shot was fired the dust rose in great clouds. When a miner was shovelling it, the dust would billow up and be carried off by the current of air. The dust was also in the roof and in the stopings, put there intentionally to fill up the spaces and prevent the accumulation of methane gas."

Jan 1, 1992

By Ben D. Thompson

Cemented Paste Backfill has proven to be of critical importance to the operation of a number of Canadian mines, primarily due to the rapid backfilling rate this method permits. In order to improve the efficiency of this backfill system (i.e. optimize binder contents, fill fence design, and the employment of two stage filling strategies) there is a requirement to better understand its geomechanical behaviour. In response, in-situ experiments have been conducted in long-hole stopes to quantify the evolution of total earth pressures and pore pressures at a series of instrumented points within both the core of the backfill and close to fill fences. The deflection of fill fences as a result of paste loading has been measured and additional instrumentation has also been employed to measure cement hydration, negative pore pressures, and blasting induced vibrations within fresh and cured paste backfill. Installing geotechnical instrumentation within an open long-hole stope can be an extremely complex procedure and this paper details the methods that have been successfully employed. Preliminary results are presented, and the pressures induced by backfill with differing binder contents, at a number of different in-stope locations are considered.

May 1, 2009

By N. D. Wineinger, J. Jodouin

"An Independent Electricity System Operator Industrial Accelerator Program (IESO IAP) case study was completed for a mine in Ontario, Canada by SRK Consulting, Inc. The purpose of the study was to analyze the ventilation system to determine whether and which system improvements could reduce the overall electrical power demand of the mine. Financial incentives are offered by the IESO IAP grant program to help cover the capital costs of these improvements. This study included the completion of a full mine ventilation survey as well as measurement of a full suite of electrical parameters of the surface and underground ventilation fans. After these measurements, a base ventilation model was created and established as the system baseline. Changes to the ventilation system were modeled, and their effects on the power demand were projected. The results of the study showed that several improvements were possible which may significantly improve the efficiency of the ventilation system and reduce mine electricity demand.INTRODUCTIONIn 2017, a ventilation study was conducted in accordance with the Independent Electricity System Operator Industrial Accelerator Program (IESO IAP) at a mine in Ontario, Canada. The IESO IAP is designed to assist eligible transmission-connected Canadian companies operating in Ontario to fast track capital investment in major energy conservation projects. The program will provide financial incentives to encourage investment in innovative process changes and equipment retrofits to reduce electricity consumption on the provincial system and to help companies become more competitive by positively impacting their bottom line. There are now four initiatives under the Industrial Accelerator Program:1. Retrofit2. Process & Systems, including Small Capital Projects3. High Performance New Construction4. Energy Managers – a new initiative under the Industrial Accelerator ProgramWithin the program, companies may propose energy saving changes to their current systems where applicable and appropriate. Companies may then be awarded funding to implement the proposed changes. The program allows partial financial compensation to implement certain energy saving changes that would otherwise not be considered due to high capital costs. For larger projects, such as underground mine ventilation systems, a detailed engineering study must be submitted. This study must detail each energy saving change or measure, its savings, and calculate the financial incentives using the IESO IAP Payment Structure. The payment structure for a project is an amount equal to the lowest of the following (Independent Electricity System Operator, 2015):"

Jan 1, 2019

By M. B. M. Monte, M. L. Torem, E. R. Pecanha, A. G. Merma

The recent literature has unveiled the potential use of microbial strains in mineral bioprocessing. This study presents the use of a Gram-positive bacterium (Bacillus subtilis) as bioreagent for hematite flotation. The bacterium presents the ability to modify the properties of mineral surface (electrophoretic mobility and hydrophobicity). It was studied the electrokinetic behavior of hematite particles, before and after the interaction with the bacterial cells. The results revealed a shift of the isoelectric point (IEP) of the hematite after interaction with bacterial cells, suggesting a chemical adsorption mechanism. Moreover, after bacterial conditioning, the zeta potential curve of hematite presented high values in the alkaline pH range. The hematite and the bacterial surfaces presented contact angle values around 27.4° and 41.0°, respectively. According to the results, the B. subtilis strain was capable of modifying the hematite surface, and after interaction the hematite surface presented a contact angle value around 46.0°. The flotation tests were carried out in a modified Hallimond tube. The experiments revealed a significant increase in hematite flotability using the Gram-positive strain as bioreagent. The tests pointed out a maximum recovery of hematite in the presence of 600 mg/L and pH 5. Therefore, the results from this study showed the potential use of the B. subtilis strain as a biocollector for hematite flotation, and its possible application in the mineral flotation industry.

Jan 1, 2016

By D. Kulchyski, R. Thibault, D. Lamoureux

"Mine tunneling applications are sensitive to the leakage and friction performance of ducting systems. Improvements in performance can help project economics through reduction in drift height, booster fan spacing, fan electrical power requirement, and deferral of ventilation raise construction. Semirigid plastic ducting has enjoyed significant adoption in mine tunneling in recent years. This paper explores technical properties and performance aspects of this relatively new material application.INTRODUCTIONUnderground mining projects are sensitive to mine development cost and schedule to meet first production—both of which are defined to a substantial extent by mine access construction. The very nature of mine access development requires driving accesses into new areas and even mechanized and automated tunneling methods require ventilation. Until underground airways are connected, allowing a flow-through circuit, ducted ventilation is required to establish ventilation within any single-access (i.e.: dead-end) heading. See Figure 1 as an example of ducted ventilation. Improving performance of ducted ventilation systems impacts project cost and schedule in several ways:For drifts whose height is defined by overhead clearance above haul trucks or tall equipment, smaller diameter ducting will decrease heading size.With higher ventilation flows, activities can be less ventilation-constricted; secondary headings can be worked without restriction, which improves schedule.Given the ability to provide more air for a given fan power, blasting gasses can clear the face and mine more quickly so crews can return to work more quickly - allowing higher advance rates.Lower electrical costs – both due to lower power consumed by fans and with the requirement for fewer electrical stations to power booster fans."

Jan 1, 2019

By J. Stachulak

In recent years more emphasis has been placed on the control of nitrogen dioxide (NO2) emissions from mining diesel equipment. Worldwide, diesel engine regulations to control emission and protect the environment are also driving the development of the diesel engine technology to reduce oxides of nitrogen NOx (Nitric oxide, NO + NO2). NOx are toxic gases produced in mines during the operation of diesel equipment. Most of the diesel equipment used in underground operations are equipped with Diesel Oxidization Catalysts (DOCs) designed to reduce carbon monoxide (CO) and hydrocarbons (HC). The effects of DOCs on NO2 production from diesel powered equipment is not well understood. DOCs do not alter NOx concentration, but may promote the oxidization of engine exhaust NO to the more toxic NO2, thus increasing the undesirable NO2 exposure of workers in the mine environment. In 2012, the ACGIH reduced the NO2 TLV concentration value from 3 ppm to 0.2 ppm. Vale and CanmetMINING have been involved in several research projects to reduce diesel emissions exposure to workers. One aspect of the current program is to determine the effects of in-use DOCs on NO2 production. Several in-use DOCs taken from mining equipment were selected for testing in the laboratory using ISO 8178-C1 and mine LHD transient test cycles. The paper presents the laboratory test results and effects of DOCs on NO2 production. The results indicate significant reductions in CO concentration, by over 77%, while increases in NO2 varied from 46% to 315% based on the ISO 8178-C1 8-mode steady state test cycle. The mine LHD transient test cycle showed the same pattern, although the magnitude of CO reduction was less. Consequently, it is recommended the use of only those DOCs that have been properly evaluated and shown not to significantly increase NO2 emission in the environment be used on mine equipment.

Aug 1, 2013

Outline ?Red Lake Gold Mines ?Red Lake Seismic System ?Applications of Seismic System at Red Lake Mine ?Seismic System Analysis and Customization ?Seismic Software ?Array Design ?Calibration and Source Mechanism ?Auto Picking Optimization ?Acquisition Groups ?Conclusions Goldcorp?s Red Lake Gold Mines ?One of the largest gold producers in Canada ?The operations comprise the former Campbell and Red Lake underground mines, now integrated as the Red Lake Gold Mines (RLGM) ?There are a total of 4 shafts with one internal winze and two main declines beginning at the 21st level ?Daily production approximately 2,600 tons

Aug 1, 2013

Real Time Monitoring of Cemented Paste Backfill Introduction Methods ?how to instrument a Long Hole stope Key Results from 2 case studies: barricade pressures and displacement, in-stope pressures Importance of Real Time Monitoring How binder, rise rate, cement content affect fence pressures

May 1, 2010

By S. P. Jekielek

"This paper describes the automation of a mine hoist ore loading pocket using a programmable controller. It provides an introduction to programmable control, and outlines the various modes and operating sequences of the loading pocket. A comparison is made with previous equipment to illustrate the increased flexibility, reliability and diagnostic functions that are gained.IntroductionLoading pockets have evolved from a couple of manually operated air cylinders to entirely automated systems. Early pockets were usually formed in rock, with loading and discharging regulated by air-operated gate s. Interlocks, added to this arrangement, prevented simultaneous operation of the gates and ensured proper hoist position . As the loading pocket advanced, it was recognized that gravity feed posed problems, often becoming plugged or letting water run through into the shaft. A belt conveyor was employed, eliminating the se problems and resulting in greater loading control. Weighing the combination of transistorized logic modules, replaced many relay systems. This elimination of moving parts and contacts increased reliability and reduced maintenance costs.As semiconductor technology progressed, there were major breakthroughs in miniaturization and reliability, and as a result the programmable controller was introduced. Programmable controllers first appeared in the automotive industry in the late 1960's. A system controller was required to replace the large relay panels in operation at that time. The use of digital integrated circuitry enabled these programmable controllers to automate processes with hundreds of inputs and outputs. Advances in electronics reduced production costs , making controllers for smaller application s viable . This development is on-going, each generation introducing controllers with greater capabilities for a wider variety of systems. equipment was the next step in loading pocket development, and dependance on much of the manual control was reduced . The complete system was first automated using relay panels. Solid- state devices were later introduced, and static control,"

Jan 1, 1980

By H. Lazreg

This paper presents an evaluation of surface resistivity techniques as a tool for delineating salt-water intrusion in Shippegan, N.B. The study consisted of resistivity profiling, resistivity soundings and a limited number of induced polarization soundings in selected areas in the Province of New Brunwick. The results from resistivity profiling indicate that when seawater intrusion occurs in a sandstone formation the resistivity contrast is sufficiently large to allow a precise delineation of the intrusion. A formula is then derived to convert resistivity values to chloride concentration in the "cone of intrusion". The results from resistivity soundings showed that shaly formations may have resistivities as low as seawater-contaminated sandstone. An indeterminacy has resulted from this resistivity overlap. A limited number of IP soundings were performed in an effort to resolve it. The results showed that IP can be of appreciable help in resistivity interpretation.

Jan 1, 1972

By K. M. Wild, C. D. Martin, F. Amann

"Argillaceous rock formations, in particular clay shales, are notorious for creating challenges in rock engineering. Due to their generally low hydraulic conductivity and their complete saturation in their natural state at depth, the behavior of clay shales is usually characterized by a strong hydro-mechanical coupling.This paper presents typical pore pressure responses monitored in different underground rock laboratories and explores alternative ways for their interpretation. The underpinning processes and their relevance are identified based on analytical and conceptual numerical models. Pore pressure monitoring data from Opalinus clay at the Mont Terri Underground laboratory, the Boom Clay at the Mol facility and the Callovo-Oxfordian clay in the Meuse/Haute–Marne URL show a similar pore-pressure response associated with stress changes accompanying tunnel construction although the tunnels were built in different rock types, at different locations, and under different in-situ conditions.The numerical analyses in this study shows that the pore pressure response around an excavation in low permeable clay shales may have different explanations. Pore pressure drops observed in the tunnel near field can theoretically be explained by both, a pure elastic response in an isotropic or anisotropic rock mass with an anisotropic stress state, or a inelastic response and related dilatancy. However, a comparison between the numerical models and the in-situ measurements revealed that the latter is more likely. This conclusion is justified by the observation that pore pressure drops occur significantly ahead of the tunnel face which is not the case in elastic numerical simulations. Pore pressure measurements in the far field, where failure processes are unlikely to occur, can only partly be explained by a linear poroelastic models. The introduction of an anisotropic material plays a key role in reproducing the responses, conceptually."

Jan 1, 2015

By Charlie Harper

Open Pit Mining of Golden Band Resources? EP Gold Deposit Golden Band Resources Inc. (GBN:TSX-V) is Saskatchewan's newest Gold Producer. Located in the La Ronge Gold Belt of northern Saskatchewan, GBN has over 875 km2 of claims with 12 known gold deposits and 4 former producing mines. Production has begun at the Roy Lloyd Mine (Bingo Deposit), to be followed initially by our EP and Komis properties. Development of the underground infrastructure at the Roy Lloyd Mineis continuing and on schedule. Production from these deposits will feed our centrally located and 100% owned Jolu mill. We have our provincial environmental permits in place, and we have an established infrastructure including a 400 tonne-per-day mill, year-round road access, and access to grid power. Construction of the grid power line and the above ground tailings facility are now complete.

Nov 1, 2011

By Georges Houlachi, Raynald Labrecque, Jean-Noël Cloutier

"Electrodialysis (ED) is an electro-membrane technology based on electrochemical process using electrical energy for the production of chemicals. The process can be used for concentrating, extracting, separating products, modifying molecules, purifying solutions, pH adjustment and regenerating salts into their base and acid. This paper reviews the principle of ED, present some of the different options and discuss applications that are relevant to the hydrometallurgy and mining industries for the treatment of effluents focusing on recovery of chemicals (acid and metals) and recycling of water minimizing the environmental footprint.INTRODUCTIONElectrodialysis (ED) is usually defined as an electrochemical separation process in which electrically charged membranes and an electrical potential difference are used to separate ionic species from an aqueous solution and other uncharged components [1]. ED technology consists of an electro-membrane technology based on an electrochemical process using electrical energy for the production of chemicals. It is a method combining electrolysis and dialysis was proposed for the first time in 1890 by Maigrot and Sabates [2]. In the late 1930s Teorell, Meyer and Sievers discussed membrane phenomena, revealed membrane potential, electric conductivity, transport number [3]. Meyers and Strauss introduced a multi-compartment ED apparatus consisting of two electrodes and a stack of ion-exchange membranes between them [1]. They succeeded to double the concentration of a KCL solution [3- Tarleton]. In general, ED consumes less energy than electrolysis to perform salt splitting. In that regard, one can expect an energy reduction of about 30% [4–5]. ED offers a great versatility in the domain of separation processes. Indeed, it can be used for concentrating, extracting, separating products, purifying by desalination, pH adjustment and regenerating a salt to acid and base components. This paper reviews the principle of ED, presents various options available and discusses potential applications relevant to the mining and metallurgy industries with economics of some successful industrial applications."

Jan 1, 2016

By Rob Kelso

What is a Lunabot? ?Robot Controlled Remotely or Autonomously ?Visual and Auditory Isolation from Operator ?Excavates Black Point 1 (BP-1) Simulant ?Weight Limit - 80 kg ?Dimension Limits - 1.5m width x .75m length x .75m height ?Designed, Built and Tested by University Student Teams

May 1, 2013

By A. P. Paiva

The solvent extraction properties exhibited by some /V,N'-tetrasubstituted malonamides to efficiently and selectively recover iron(III) from concentrated chloride leaching solutions can be found in the recent literature. The iron(III) extractive chemistry exhibited by some of these derivatives is revisited, in order to compare their chemistry with that shown by a few of the new malonamide compounds. The generally good extraction efficiency towards Fe(III), from >4 M hydrochloric acid solutions, and the relative ease of Fe(III) stripping by distilled water are remarkable findings that are confirmed for the malonamide derivatives described in this work. Furthermore, additional data regarding their selectivity towards Fe(III) extraction over several base metal ions and their behavior when subjected to successive Fe(III) extraction-stripping tests are also presented and discussed.

Jan 1, 2006

By L. Kilburn

A survey of 281 mineral exploration agreements examines the ratios among three ways that may be used to purchase an interest in a mineral property, viz: pay cash, pay shams and make future expenditures on the property. The dollar value of the future expenditures exceeds that of cash or shams by about nine times in most of the 110 agreements that contain cash-expenditure or share-expenditure components. Results suggest that cash and shams are treated about the same in terms of value. Buyers and sellers haw opposing priorities for the way that they prefer to purchase a mineral property. These opposing priorities should give rise to a perceived 50:50 balance between cash/share payment and future expenditures to satisfy the idealized situation described by most definitions of fair market value (FMV). This balance between cash/share payments and future expenditures appears to be rationalized in negotiations to a FMV when expenditures are nine times greater than cash and/or payments. On this basis, it is proposed that the FMV of a property may be determined by aggregating the dollar amount of the cash/share payments plus one-ninth the dollar value of future expenditures, as set forth in the respective purchase agreement, and proportionately applying such aggregate to full property value.

Nov 1, 2005