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By Robert T. McKnight

"Traditional techniques for valuing resource projects companies have been primarily based on discounted cashflow methods (DCF) or by comparison to similar projects with an apparent market capitalization. Many resource projects are really forms of options to invest rather than a future cashflow stream. Employing the DCF method to value a resource project which is really an option to invest, can dramatically underestimate the real value of the project. The analytical tools required to evaluate options, while more complicated than the usual spreadsheets used for DCF, are becoming more easily available and usable by managers. This paper will discuss the background of options valuation and some of the tools which will make it easier for managers to estimate the value of projects and companies which have significant real option values.ResumeBob McKnight is a graduate of the University of British Columbia in Geological Engineering, supplemented by an MBA from Simon Fraser University. Following several years in the oil patch with Cities Service and Brascan, Bob returned to Vancouver in 1979 to work for Wright Engineers. He subsequently went on to work for Cassiar Mining, Getty Resources and Endeavour Financial before joining Pincock Allen & Holt Ltd. in 1998. His experience ranges from exploration to feasibility studies, financial evaluations of mining and oil & gas projects, due diligence, project finance, valuations and mergers and acquisitions. He has extensive international mining experience pertaining to such countries as Chile, Mexico, Uruguay, Thailand, Indonesia, Angola, Papua New Guinea, Kazakhstan.What are Options?Options have been around for centuries. They were familiar to Roman and Phoenician traders who were shipping cargoes from Mediterranean seaports. In the financial world, options are types of contracts that generally include the right, but not the obligation, to buy or sell a share, currency or commodity. The underlying commodity price or share price changes are assumed to be lognormally distributed. In this context, options are of two general types, ""call"" options and ""put"" options. Call options have the characteristic of having the right to buy a tradable commodity or currency at a predetermined price for a specified period of time. For the owner of call options, they become more valuable as the price of the underlying commodity increases. For the seller of call options, these options become an increasing liability as commodity prices rise, since there is the obligation to sell the commodity at a predetermined (perhaps lower-than-market) price. This characteristic of call options recently became high profile with the sharp rise in gold prices last year. The value of gold call options sold by certain producers increased their associated liabilities to the point where margin calls were made."

Jan 1, 2003

By D. K. Deardorff, Laurance L. Oden, H. Kato, M. I. Copeland

The equilibrium relationship of hafnium and tantalum was studied to facilitate alloy and property investigations . The data obtained are presented graphically as the equilibrium diagram . Alloys were prepared from high - purity components by nonconsumabletungsten- electrode arc melting . Data for the equilibrium diagram were obtained by optical pyrometry , metallography , X- ray diffraction of heat treated specimens , X- ray diffraction using a high- temperature camera , and differential thermal analysis . During the investigations , a casting apparatus was constructed , and the existing melting - point apparatus was improved . The bcc allotrope of hafnium forms a continuous series of solid solutions , called beta , with tantalum which exhibit a minimum melting point at 20 wt pct tantalum and 2,110 ° C. At 24 wt pct tantalum and 1,050 ° C , hafnium- rich beta decomposes in a monotectoid reaction to yield alpha and tantalum- rich beta . The monotectoid isotherm extends from 5.5 to 60 wt pct tantalum . The twophase region , in which hafnium- rich and tantalum- rich beta solid solutions are immiscible , rises to a maximum temperature of 1,265 ° C at 38 wt pct tantalum . The solubility of hafnium in tantalum decreases from 40 wt pct at the monotectoid temperature to 20 wt pct at 750 ° C.

Jan 1, 1964

By M. R. Yenchek

The Bureau of Mines conducted research to determine the relationship between cur-rent load and temperature rises in coal mine trailing cables. Six low-voltage, unshielded, portable power cables were continuously and intermittently loaded with direct current of various magnitudes. Temperature rises within and on the cables were measured with thermocouples, and the data were recorded with a computer. Thermal time constants were calculated, which fixed the periods of the duty-cycle tests. Relationships between average temperature at the conductor-insulation interface and current load were established. The steady-state and intermittent currents that produce a 90° C average conductor-insulation temperature were then determined. Comparisons with Insulated Cable Engineers Association (ICE A) steady-state ratings revealed that 10 to 25 pct more current than recommended ICEA ampacities is required to reach rated insulation temperature. Examination of the maximum intermittent temperatures attained showed that autoignition of coal dust and burn injuries to personnel handling the cable would not be concerns if the temperature at the conductor-insulation interface averaged 90° C.

Jan 1, 1988

By G. C. Hambleton

"The author has had wide experience in the reclamation of coal from coal mine waste dumps in the United Kingdom.The paper includes such topics as the processing decision and factors affecting processability; method of testing and appraisal; test data interpretation; historical influences in apppraisal; special contaminants and processing difficulties; methods of treatment; review of systems in use and their comparative economics; over-all system economics including excavation, handling methods, recovery system and shale disposal; effluent treatment; environmental considerations; alternatives to processing for coal recovery; light aggregate and cement usage; burned shale heaps; land reclamation; shale deposition for encouragement of vegetation by natural or artificial means; use of tailings fines; the environmental argument for action."

Jan 1, 1972

By Steve Davidow, Ashely E. Evans, Peter M. Kandaris

"Annually thousands of deep foundations are constructed across North America supporting high voltage transmission line structures. However, a recent state of the practice survey by the Deep Foundation Institutes’ Electric Power Systems Foundation Working Group discovered that the electric power utility industry lacks consistent foundation design guidelines. The survey identified a wide variability in design assumptions, a minimal understanding of risk based analysis, and a need to standardize design methodologies. This paper summarizes the state of practice in electric system foundation design and proposes a framework for risk-based foundation design by accounting for uncertainty from both loads and resistances. Loads derived from electric system codes do not necessarily provide a compatible level of reliability for the design of foundations, as they are a mixture of probabilistic and deterministic values. Load uncertainty is derived from variability in weather conditions, structural models and material properties, typically accounted for by code derived overload factors. Resistance uncertainty arises from variability in natural soil properties, resistance models, subsurface construction techniques, material sampling methods, and limited observations. A consistent methodology is offered relating nominal resistance capacity (strength) to structure loads and service state criteria. Discussion also includes the need for risk-based assessments to account for non-structure load influences (fluvial loads, scour ground loss, liquefaction, etc.).INTRODUCTIONNearly 40 years ago the Electric Power Research Institute (EPRI) embarked on a major research effort to optimize reliability and economics of transmission line foundation design. Strategies focused on improvements in design models, site characterization, exploration strategies and testing to reduce uncertainty and variance in analysis. Transmission line engineers realized that safety and reliability advancements in design based on probabilistic approaches, with a focus on the unique nature of transmission line, could better control risk and cost.Some transmission line professionals took full advantage of these advancements, particularly where research led to improved software and models. Yet, even after two decades of extensive research, by 1995 the industry still had made little progress in changing design habits. The majority of designers were still characterizing sites via deterministic methods, using loads that may or may not relate to a consistent probability of occurrence, and applying a traditional global factor of safety approach (Phoon, et al. 1995). The following two decades have seen even greater developments in software and reliability-based analysis methods, but old habits seem to die hard as recent surveys show less than half of design professional quantitatively assess risk in their design process."

Jan 1, 2017

By Yi Luo, Jian Yang, Hua Jiang

Surface subsidence events induced by underground longwall coal mining operations can cause various disturbances to surface structures ranging from integrity and stability to functionality problems. Highway bridges, as a kind of special road construction that can only tolerate smaller movements and deformations than road pavements, are particularly susceptible to severe influence caused by subsidence-induced ground movements and deformations. However, based on accurate subsidence prediction and correct influence assessments, efficient and effective mitigation and remediation measures can be designed and implemented to ensure the continuous service of bridges, safety of the travelers and smooth mining operations. In this paper, based on the predicted final and dynamic surface movements and deformations, the techniques to assess subsidence influence on the integrity, stability and functionality of bridge structures (e.g., decks, beams, abutments, etc.) are presented. A number of mitigation measures to protect the bridge structures are recommended along with an actual application case.

By P. Miranda, K. Le, G. Maes, R. Peters

"The Mount Milligan Mine, owned by Thompson Creek Metals Company Inc. (TCM), started operations in September of 2013. It is located between the communities of Fort St. James and Mackenzie and is the first major metal mine to open in British Columbia in 15 years. Based on reserves as of January 1, 2014, it has an estimated 22 year mine life with 2.1 billion pounds of copper and 6 million ounces of gold in reserves. Like all commissioning operations, there have been issues achieving design throughput and recovery due to flow sheet design, equipment failures, control philosophy, and reagent scheme. Efforts to improve overall mill performance include equipment modifications, reagent screening and testing, and grind size testing. Applying these changes to the mill and working closely with the mine has resulted in continuous improvement each month as Mount Milligan looks to achieve the nominal design capacity of 60,000 dry metric tonnes per day in the later part of 2015. Considerable focus is being placed into ensuring size reduction equipment is utilized effectively. Additional modifications and tests are being undertaken to steadily improve processes and alleviate restrictions in the mill. This paper will discuss the start-up and present ramp-up history of Mount Milligan, the current mill processes, and the steps taken to achieve expected production numbers.OPERATION BACKGROUNDMount Milligan is an open-pit copper and gold operation wholly owned and operated by Thompson Creek Metals. It is located approximately 155km northwest of Prince George, British Columbia, between the communities of Mackenzie and Fort St. James. The copper-gold porphyry deposit contains a Measured and Indicated Mineral Resource of 706.7 Mt at 0.18% Cu and 0.33 g/t Au, containing 2.84 billion lb. copper and 7.50 million oz. gold. Mine life is currently estimated at 22.1 years (“Feasibility Update – Mt. Milligan,” 2009). The mill is designed to process 60,000 dry metric tonnes per day and produce 400 dry metric tonnes of concentrate per day averaging 25.5% Cu and 40 ppm Au. Concentrate is delivered by truck and trailer to Mackenzie followed by rail to Vancouver for overseas shipping to various customers.Mount Milligan is considered a “zero discharge” operation meaning no process or surface water will be discharged to the environment. As well, stockpiling is very limited and is only permitted for a short period of time. This scenario presents several unique challenges. Scheduling of ore/waste production must be carefully planned as waste rock is used to build the tailings storage facility (TSF). Reagent selection is also important as persistent chemicals will have a tendency to build up in reclaim water which feeds the process water tank."

Jan 1, 2015

By Q. C. Reynolds

Keywords: Pyrometallurgy, plant, photography, GIS, satellite images, Google Earth Google Earth is a piece of software able to display an interactive three-dimensional map of the world, combining aerial and satellite photography with maps, terrain, and user-generated geographical information systems (GIS). Many structural features of the planet, both natural and man-made, are of great interest to the mining and metallurgy field, and in this paper a study is made of the current state of the art of data accessible by Google Earth.

Jan 1, 2006

By H. Foster Bain

I. INTRODUCTION. By H. FOSTER BAIN.+ THE recently aroused public interest in the conservation of our natural resources has peculiar importance to mining-men, since they deal with resources which are stored products. Within certain limits, the fertility of a worn-out soil may be restored, deforested areas can be replanted, one year's wasted water-supply is followed by another; but coal and ores, once taken out, cannot be mined again, and should therefore be conserved with especial care. This means, however, not that mining should be restricted, but that it should be done most economically and with the minimum of waste.

Nov 1, 1908

By Karl C. Dean

To assist in the reduction of environmental degradation resulting from milling operations, the Bureau of Mines has developed, and successfully demonstrated, chemical, vegetative, and combined chemical-vegetative procedures for stabilizing milling wastes under varying environmental conditions. Costs of achieving reclamation using these stabilization procedures are compared with those of other physical and vegetative approaches. The Bureau's chemical-vegetative procedure for establishing vegetation directly on fine-sized wastes compares favorably with other stabilization processes that have been used.

Jan 1, 1972

By Danilo Gonçalves de Oliveira

A linha de Decapagem e Laminação a Frio da ArcelorMIttal Vega vem recebendo constantes investimentos para aumento da sua capacidade produtiva sendo o mais recente a instalação do quarto tanque de decapagem química realizada em março de 2015. Para que esse investimento trouxesse o resultado esperado, eram esperadas melhorias de desempenho no processo de Laminação a Frio. O presente trabalho expõe a metodologia empregada para identificar os projetos necessários e os expressivos resultados obtidos com a sua condução ao longo do ano de 2014.

Aug 16, 2017

By Lenin T., Madhav M. R., Padmavathi V.

Use of PVDs and preloading on the ground can significantly reduce the time taken for ground to consolidate. Many soils in situ are lightly overconsolidated, with overconsolidation ratios (OCR) ranging from 1.0 to 2.0 due to various reasons such as glaciation, ground water level fluctuation, aging, cyclic loading, creep, erosion, cementation, etc. The effects of overconsolidation ratio are analysed in this study. Compression index and consolidation coefficient are important parameters in determining time – settlement response of soft soils under preloading and with PVDs. These parameters are typically estimated using oedometer tests on samples, with the assumption that the results represent the entire deposit. The in-situ time-settlement plots at different depths are used in the back analysis for estimating compressibility and consolidation parameters of in situ ground, resulting in more representative values that reflect the deposit's overall behavior. From observed time versus settlements plots, variations of compression index and coefficient of consolidation with depth of a deposit are presented. Estimation of compression index with depth is possible based on different OCR values as shown in this study. Barron (1948), Asaoka methods are used to estimate the coefficient of consolidation with flow in the radial direction.

Sep 1, 2022

By K Faure

At Sams Creek a gold-bearing, peralkaline granite pophyry dyke intrudes Ordovician-Silurian metapelite and quartzite. The granite porphyry dyke has a thickness of up to 40 m, extends discontinuously for about 8 km, and intrudes thin lamprophyre dykes along its contacts. The granite dyke and gold-bearing sulphide and quartz-siderite veins within it have been deformed and recrystallised during several phases of folding, the youngest of which is Early Cretaceous.   The unaltered granite porphyry is composed of phenocrysts of perthite, arfvedsonite, aegerine and quartz in a groundmass of the same minerals, with accessory ilmenite, rutile and fluorite. K-Ar dates of amphibole from the granite gave ages of 226 and 246 Ma, but these ages may be a minimum due to resetting during the thermal and deformation events that have affected the area. Unpublished Ar-Ar data on amphibole from the granite show disturbed spectra with high temperature steps around 300-315 Ma, which is consistent with the age of A-type granites in the Buller region. Further age dating of primary and hydrothermal minerals in the granite is continuing. At least three stages of hydrothermal alteration have been identified in the granite. Stage I alteration is characterised by high fO2 magnetite-siderite ¦ biotite, which is cut by thin quartz-pyrite veinlets (Stage II). These are cut by Stage III sulphide, quartz and siderite veins, and pervasive silicification represented by quartz-perthite-albite-rutile ¦ pyrite-siderite-sericite assemblages overprints the earlier alteration stages. Lamprophyre is altered to a siderite-chlorite-sericite assemblage. Stage III sulphide veins are composed of arsenopyrite + pyrite ¦ gold ¦ galena ¦ sphalerite ¦ chalcopyrite ¦ pyrrhotite ¦ graphite, deposited by low fO2 H2S fluids. The gold contains 18-30 wt% Ag and up to 1 wt% Bi. Temperature of vein formation was estimated from vein quartz fluid inclusion homogenisation temperatures (Th 260-355oC, average 330oC), arsenopyrite-sphalerite thermometry (310-365oC) and quartz-albite stable isotope thermometry (340oC). The altered granite and the veins have been deformed, and recrystallised and competent sulphide minerals are fractured and brecciated. Alteration and mineralisation are confined to the granite porphyry and adjacent lamprophyre.

Jan 1, 2004

By Bjarne Ekberg

"The most economical way of dewatering mineral concentrates is to reduce the moisture content in the material mechanically using thickeners and filtration avoiding thermal drying whenever possible. In addition to this, the dewatering process should produce low moisture cake, high quality liquid, consume little energy. As a part of the dewatering process The CERAMEC® capillary filter has been proven to meet these requirements in over 150 installations. The filtration is done by using ceramic filter plates with small pore size. The capillary action in the filter medium secures gas free filtration at good vacuum, and due to the small pore size, filtrate is crystal clean and particle free. The energy consumption is minimal. This paper will discuss results from filters installed at Pyhäsalmi Mine Oy in Finland where the technology was has been used since the late eighties. Results from more recent installations like Los Pelambres in Chile and LKAB in Sweden will also be discussed.INTRODUCTIONThe idea of using capillary action to make dewatering more efficient was invented two decades ago. Ten years later whole filter plants utilizing the new method were delivered to mine concentrators for dewatering of mineral concentrates. Further development of ceramic membrane plates made it possible to meet the requirements in iron ore dewatering. In addition to low cake moisture, high capacity and low energy consumption, there are a lot of environmental advantages in using capillary filtration. One of them is clear filtrate.CAPILLARY FILTRATIONA micro-porous filter material behaves like a large number of narrow capillaries forming a network. When a pressure difference ?P is applied over the wetted, hydrophilic pore with the radius r, the force striving to push the water out of the pore will be ?Ppr2. The force striving to hold the water in the pore will be the vector force 2pr? cosa of the surface tension ? and the cosine contact angle a. Equalling those forces and solving the equation for ?P we get"

Jan 1, 2003

By Thom Seal, S. J. Jung

This paper will combine three SME annual meeting presentations on reducing gold inventory in cyanide heap leaching. Information on Part I – Side slope leaching (SME 2003), Part II – Determining the dry zones using geophysical resistivity (SME 2004), and Part III - Presents a new technology “Hydro-Jex”, to introduce the required lixiviants to the un-leach or under-leach zones in heaps (SME 2005). This paper will describe how Newmont Mining Corporation continues to improve the economics of the heap leaching process for precious metals recovery.

Jan 1, 2005

Bacterial leaching represents an unusual problem in biochemical engineering, because the substrate for bacterial growth is not supplied directly, but is a product of another reaction, the leaching of mineral particles. Leaching arises from the bacterial oxidation of ferrous ions to ferric ions, which in turn oxidize the mineral. For the bacterial dissolution of pyrite, these reactions are: [ ] (Y represents a stoichiometric yield factor, and N represents the amount of bacteria.) Equations [1] and [2] represent a cyclic auto-catalytic system since more ferric ions are added to the system with an increase in the extent of leaching.

Jan 1, 2000

By O. Gunaydin

Performance measurements of large-diameter circular saws were conducted on eight different carbonate rocks in marble factories located in some areas of Turkey. Rock samples were collected from these factories for laboratory tests. Uniaxial compressive strength, tensile strength and impact strength were determined in the laboratory. The brittleness of B3 (the ratio of compressive strength minus tensile strength to compressive strength plus tensile strength), the brittleness of B5 (the product of percentage fines in the impact strength test and compressive strength) and the brittleness of B8 (half of the product of compressive strength and tensile strength) were calculated from the test results. Hourly slab productions were correlated with brittleness indexes. It was concluded that sawability of carbonate rocks can best be predicted from the brittleness of B8.

Jan 1, 2004

By P Atkinson, M P. Simpson, J R. Kyle

BM37 is a bonanza-grade (>30 ppm Au) ore shoot of the Maria Lode of the Karangahake adularia-sericite epithermal deposit in the southern Hauraki Goldfield. Samples from BM37 contain up to weight percent gold. The ore shoot is a vein that pinches and swells, but is typically tens of cm thick, and locally exceeds 0.5 m in true width. Gold occurs as irregular anhedral electrum grains that range up to 300 microns across and contain 38 to 59 wt per cent Au (ave. 52 wt per cent Au). Electrum occurs in sulphide-rich bands in association with pyrite, chalcopyrite, acanthite, galena, sphalerite, and local covellite. Lower grade samples contain local to rare mckinstryite [(Ag, Cu) 2S] and polybasite [(Ag, Cu) 16 (As, Sb) 2S11]. Pyrite from BM37 is nearly stoichiometric; it lacks the As that commonly occurs at up to percent levels in pyrite from other veins in the goldfield. Acanthite also contains low quantities of trace metals, and typically has less than 2.5 per cent Se. The vein shows complex textures. Bonanza grade sulphide-rich ginguro bands form discrete layers adjacent to the vein margins, and occur as breccia fragments encased by later massive to comb quartz with local quartz after platy calcite. Both the breccia fragments and ginguro bands are cross-cut by later quartz veins. Textures thus indicate that formation of the high-grade portions of BM37 resulted from one or more discrete events that differed markedly from the events that formed the bulk of the vein.

Jan 1, 2006

By Jesús Astuvilca

Con el objeto de mejorar las condiciones de seguridad y continuar el incremento de la producción a corto plazo, la empresa minera Yauliyacu implementa el uso intensivo del software minero DATAMINE. En ese sentido, el presente texto describe la implementación de este programa, donde la data de estas vetas y cuerpos polimetálicos son trabajados con el objetivo de automatizar los trabajos de geología, ingeniería y topografía. Los resultados obtenidos permitirán avanzar en aplicaciones diversas como: estimaciones locales y globales, control de leyes, proyecciones de costo de minado, evaluación de estrategias de dilución, diseño y planeamiento de minado.

Jul 17, 2000

By Randolph R. Dreher, Michael L. Schreder

"In recent years, FFE Minerals has designed, installed and commissioned several large grinding mill circuits. This paper discusses the issues related to the erection and commissioning of large grinding mill circuits. The three circuits discussed are Collahuasi in Chile, Minera Los Pelambres in Chile, and Century Zinc in Australia. These circuits include large SAG and ball mills with both gear and gearless drive arrangements, as well as, both trunnion and shell supported mills. Aspects of these features are discussed with respect to their impact on installation and commissioning. While the normal challenges of mill erection and start-up were experienced, there were also a few unexpected challenges encountered partly due to the large scale of the equipment. An overview of the equipment and design ratings of these circuits is also provided.COLLAHUASIOverviewThe Collahuasi mills were started-up in November of 1998. The site is located in the Andes Mountains at an elevation of 4300 meters. The grinding circuit includes two lines featuring one SAG mill and one ball mill for each line. The circuit features a recycle conveyor around the SAG mills with provision for adding a pebble crusher in the future. The design tonnage of the grinding plant is 60,000 MTPD with an ore BWI of 10.5 kWh/MT.The SAG mills are 32’ x 15’ (1 3’ EGL) with 10,800 HP drives. The drive arrangements are dual pinion through pneumatic clutches. The mills are driven by low speed synchronous motors with CCV variable speed drives. The SAG mills are trunnion supported and use hydrostatic lubrication. Feed to the SAG mills is via a rock-box type feed chute on a cart. The mills discharge on to trommel screens with a bucket wheel to remove the oversize.The ball mills are 22’ x 36.5’ (36’ EGL) with 12,500 HP drives. The drive arrangements are dual pinion through pneumatic clutches. The fixed speed mills are driven by low speed synchronous motors with GE Quadramatic load sharing drives. The ball mills are shell-supported and feature multi-pad bearings with hydrodynamic lubrication. The mills are fed via a rubber lined sump box with feed spout on a cart. The ball mills also discharge on to trommel screens. Twenty-six inch (26”) diameter hydrocyclones are in closed circuit with the ball mills."

Jan 1, 2001