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By J. E. Zajic, E. A. Sullivan, T. R. Jack

"The release of vanadium, iron, nickel and titanium from the cokes produced in the upgrading of Alberta oil sands bitumen has been assessed for simple chemical leaching processes. Flexicoker coke (Exxon Engineering and Research) has been found to be quite amenable to the recovery of vanadium as well as nickel, iron and some titanium by these techniques, whereas fluid coker coke (Syncrude) and delayed coker coke (Great Canadian Oil Sands) are relatively intractable under the mild conditions employed. The factors affecting the extent of vanadium release are discussed in terms of the surface area accessible, the wettability of the material, and the chemical and physical composition of the coke particles in each case.A novel biologically assisted heap leaching procedure for f1exicoker coke is also described, based on the growth of the chemolithotrophic bacteria, Thiobacillus thiooxidans A TCC 8085, on elemental sulphur added to the coke."

Jan 1, 1980

By P. R. Clark, M. D. Gleghorn

"IntroductionAt TransAlta Utilities Corporation's Highvale Mine, located west of Edmonton, Alberta (Fig. I and 2), dragline stripping has proved to be a practical and economical method of overburden removal and future plans have been based upon the continued use of draglines (Fig. 3) as the major stripping equipment (Williams, 1979, Nikols et al., 1986). However, long range planning has shown that the capacity of draglines alone will be exceeded in the early 1990s as mining progresses into deeper overburden cover (Tapics, 1983). Strip ratios will increase from I.3 bank m!/ t of coal in 1985to 4.5 bank m3 / t in 1995. During this period the depth of overburden will increase substantially and the areas to be mined will be characterized by weak soils including glacially displaced overburden. This increased overburden depth in relatively weak soils will make it impractical to _continue side casting by draglines without prestripping in advance. In 1983, a major investigation was initiated to determine what additional overburden removal equipment was appropriate to the Highvale operations, and recognizing the long delivery times of this major equipment. when it would be required. This paper describes studies and tests which were undertaken in 1983 and 1984 to select prestripping methods and equipment for the future operation of the mine.Previous planning studies have shown that with the current burn schedule and with the economies of progressing from low cover to high cover, as has been practiced in the past, overburden volumes will exceed the capacity of the existing draglines in the early 1990s (Fig. 4). These previous studies had placed reliance on (I tandem dragline operation for future overburden removal requirements up to a depth of 45 m throughout the Highvale Mine. New drilling together with the associated geotechnical studies and some detailed planning on the practicality of using tandem draglines, created concerns about their universal application. Even without considering geotechnical conditions there was a depth limitation to tandem dragJines and substantial prestripping would be required to achieve the ultimate depths."

Jan 1, 1987

By Atulya Verma, Samantha Espley, Nashel Kalaka

Numerical modelling simulations of proposed mining sequences are used to evaluate mining induced stress concentrations and their migration associated with the progress of mining. This analysis is a standard practice for most prospective mining projects at various levels of feasibility study. The studies are usually initiated at the beginning of the mining cycle, on a global scale, and are maintained and updated throughout the life of mine (LoM) to identify or address local issues and the required remedies as and when needed. Developments in numerical modeling techniques along with advancements in computing technology and data storage/management capacity have given rock engineers access to a huge volume of data that needs to be analyzed and assessed. The most common approach to numerically evaluate stress concentrations and migrations in underground mines is to select the points of interest in a given volume such as the back of an excavation or points within pillars around critical infrastructure, and plot the stresses or a derivative of stresses over time to represent life of mine concentrations and migrations of stresses. The problem with this approach is the sharp gradient of stresses close to excavation boundaries. Slight changes in the location of selected points can change the stress concentration and migration patterns substantially and all generalized statements about LoM risk can be challenged in one way or another. For global stresses, the most common current approach of data analysis is by viewing series of pictures representing stress contours. In this approach, it is easy to overlook some critical detail and/or be masked by personal preferences of contour/picture representation. To overcome the problem of representing and analyzing huge volume of stress simulation data, the authors, through their experience at different mining operations, developed a volume-based technique to reliably evaluate mining-induced stress concentrations and migrations. The volume-based approach is for risk-based assessments of adjacent regions in the rockmass, in and around planned stoping excavations. The volume of interest is the entire ore body that is planned to be mined, but it could be just a part of the ore body depending on the specific use case. The risk identifiers are the induced stresses as compared to the strength of the rockmass. Over the LoM, the risk identifiers are tracked versus the corresponding excavation ratio of the zone. This approach is very effective in identifying the stages of mining that are contributing the most to the mining induced stress risk and the results can be used for proactive planning and mitigations measures such as alternative mining sequences, or stope sizes, or extraction methods. The approach has also been very successful in application at mature mines, particularly in assessing the re-initiation of mining in zone that has been dormant for some time. The volume-based approach allows for an assessment of the current state of the rockmass and the identification of future risks when planning resumption of mining activities.

Jan 1, 2023

By O. W. Ellis

Introduction During the month of September, 1928 enough money had. been promised by private individuals and corporations to comply with the Research ?Foundation Act 1928 (Chapter 57, 18 George V) of the Province of Ontario. The Ontario Research Foundation (referred to below as O.R.F.) may be said to 1iave come into being at that time. Under the terms of this Act, the Treasurer of the Province was empowered to match dollar for dollar of the sums subscribed by private .corporations and individuals up to a limit of $1,000,000. However, the response to the appeal for this by the Premier of the Province, the Honourable Mr. G. Howard Ferg uson, was so exceptional that the Act was amended in 1929 so as to empower the Treasurer to increase the maximum contribution on the part of the Province to $2,500,000. In March, 1933, the Chairman of the Foundation, Sir Joseph Flaville, Bart., was able to report that, in the interval between the Premier's appeal and December 1st, 1932, private enterprise had paid ?into the treasury of the Foundation $1,670,050, and that the Provincial Treasurer had assumed responsibility for a like sum. The endownment Fund of the Foundation was, therefore. $3,340,100. This sum was ?invested a lm~ s t entirely in Government securities, in securities guar. anteed by the Government, and in 1mmicipal securities. Sir Joseph Flavelle remarked at that time that "The payment of $1,670,050 to the Endowment of the Foundation by private persons and corporations is a somewhat remarkable performance when it is remembered that for three of the five years the business of the country has been suffering from a severe depression". Since that time it has been the consistent policy of O.R.F. to live within the income derived (1) from the investment of its Endowment Fund and (2) from fees collected for services rendered.

Jan 1, 1950

By C. Derek Martin

"Predicting the ground response for tunnels in weak shales remains challenging. Predicting the ground response is challenged by difficulties in characterising the material, and our ability to predict deformations that are driven by coupled hydromechanical processes, when this material yields. The techniques that are used for characterizing weak shales are reviewed, and three case histories are examined that demonstrate the behaviour of these weak rocks during tunnelling. A general framework is provided for assessing the squeezing potential for weak shales.1 INTRODUCTIONGeologically, shale is an argillaceous fine-grained sedimentary rock that forms from the compaction of silt and clay-size mineral particles commonly referred to as ""mud"". Because of this grain size, the material is generically classed as Mudstone (Figure 1). Shale is distinguished from other mudstones because it is made up of many thin layers (laminated) and readily splits into thin pieces along the laminations (fissile). While the geological classification of shale appears straightforward, the classification for engineering purposes is often confusing. Underwood (l967) provided the first description of shale that made the distinction between “soil-like” compaction shales and “rock-like ""cemented"" shales. He coined the term ‘clay shale’ to capture the characteristics of hard clay yet recognizing its origin as a shale. In this paper weak shale is synonymous with clay shale and have strengths that typically range from R1 to R2 (1 to 25 MPa). Characterising these materials draws on methods from both soil and rock mechanics."

Jan 1, 2015

By Michael S. Moats, Shijie Wang, Timothy Robinson

In 1987, John Schloen published a survey and analysis of copper electrorefining tank room data. Following this paper, a series of copper electrorefining surveys have been conducted and presented at each of the Copper-Cobre meetings over the past 20+ years (1991, 1995, 1999, 2003, 2007, 2010 and 2013). For each of these surveys, William Davenport has been key driving force in the collection and analysis of data. To honour Professor Davenport’s contribution to copper processing, a review of the data was conducted. Historic trends and possible future technologies are discussed.

Jan 1, 2014

By Karl J. C. Harries

"2.1. INTRODUCTIONNo agreement can be perfect in the sense that it contemplates and provides for all eventualities. Mineral acquisition agreements are usually negotiated and drafted at a time when an orebody is no more than a gleam in a geologist’s eye, so it is hardly possible to provide for development and operation in other than the most general terms. However, an agreement that stops short of contemplating the possibility of an orebody and production is ill-advised. Accordingly, it is important to provide procedures to make decisions that will let the project proceed, even in the face of a fallingout between parties. Whether the parties are shareholders in a corporation or venturers in a contractual common undertaking like a joint venture, differences of opinion and disputes will occur. Unfortunately, more and more are ending up before the courts. Besides greed and the growing tendency in society to fight rather than talk, there are other factors that contribute to the increase of litigation. In some jurisdictions, agreements have tended to become complicated, often defying interpretation, even by a lawyer, and explorationists want their budgets to go into the ground as constructive work rather than into a lawyer’s pocket. All this has led to a growing tendency for corporations to take the attitude that the chances of finding a mine are, at best, marginal and there are lots of earlier agreements in the files to draw from, so why not prepare their own agreements? As discussed in the preceding chapter, this can be folly. All these factors can quickly have parties facing each other in court while a project sits idle. Added to this is the problem that, in some jurisdictions, lawyers may take cases on a contingency-fee basis, sometimes promoting the pursuit of a nebulous claim.When an orebody is discovered, someone will always want some, or more, for himself. There is a breed of “prospectors” who prospect for legal actions, on the somewhat sound grounds that a major corporation will buy off nuisance litigation, rather than incurring the cost and effort of attacking even a poorly founded claim in the courts. They may even find a winner. Besides, it is far more comfortable and relaxing to prospect for problems and legal niceties than to prospect for an orebody.1 In short, it is appropriate to consider briefly some of the factors relating to lawsuits and judgments. Although many of the comments are made in the context of the common law and the Canadian legal system, most of the concepts and suggestions are applicable to any legal system."

Jan 1, 2003

By Frank S. Palkovits

Over the past 30 years, underground paste backfill systems have been implemented across the globe in many configurations, each with a primary focus of providing high quality backfill to enhance mine operations. However, a number of key design drivers are not always well understood within design engineering firms that occasionally undertake this work, leaving opportunities on the table. Perhaps not always obvious to those newly embracing paste technology, identifying key drivers and opportunities attainable through a paste backfill system is generally not straightforward, requiring innovative approaches to securing higher productivity, availability, performance, maintainability, and operator health and safety. This paper describes a number of applications and audits of paste backfill systems for several challenging mine operations. Key challenges include iterative design aspects of availability of good backfill materials, plant location and configuration, general arrangement, and binder receiving/storage systems.

Oct 1, 2010

By A. H. Lang

"The Cordilleran region of western Canada includes most of British Columbia and the Yukon and pares of Alberta and the Northwest Territories. The western part of this region was for about 50 years the principal mineral producing area of the Dominion. It lost this distinction in 1907 when production from the mines of the Canadian Shield took the lead, but it continues to provide about 15 percent of the total Canadian production. In 1945 the total mineral production of British Columbia and the Yukon was valued at $65,302,900, of which about 80 percent was derived from metals.This paper is intended to serve as an introduction co the more derailed Cordilleran papers. Part I includes a brief synopsis of the complex geology and diverse types of mineralization in the region and Parr II collates the main structural principles exemplified in the derailed papers, and draws some conclusions regarding the application of this information to prospecting."

Jan 1, 1954

By K. Hambrice, E. Fauveau

"When it comes to measuring the level of bulk solids, liquids, and everything in between, guided-wave radar technology now offers more level-detection capabilities than ever before. For an ever-widening range of previously hard-tomeasure products such as molten sulphur, liquid ammonia and petrochemicals, guided-wave radar transmitters provide accurate level measurements even under harsh chemical environments, wide variations in operating temperatures and pressures, and low dielectric constants.Great strides have been achieved in making these units easier to configure to a variety of process applications coupled with the simplicity of integrating these devices with most digital communication protocols. These improvements come as welcome relief to process engineers within an expanded range of level applications across several different industries that seek solutions to measuring the contents of tanks, silos, hoppers, bins, mixing basins, and vessels.Because radar transmitters have no moving parts, radar has already established a dominant niche in level measuring that quickly distances itself from mechanical means, which do not hold up as well in dirty service. Radar achieves its nonmechanical level detection capability by measuring the time of flight of the transmitted signal.Known more accurately as time domain reflectometry (TDR), the process involves sending microwave energy down into a vessel. When the pulse of radar energy reaches the product (indicated by a change in impedance), part of the pulse is reflected back toward the transmitter.A receiver measures the exact duration of time between the transmitted and reflected signal — the “time of flight.” The device analyzes this time and ultimately displays the level of the product as a distance in feet, metres, or other engineering units."

Jan 1, 2003

By Cheowchan Leelasukseree

Mae Moh mine, operated by Electricity Generation Authority of Thailand (EGAT), is the largest open pit mine in Southeast Asia. Its production is approximately 15 million lignite tons and 90 million m3 of waste, annually. The bottom of the final pit limit is designed to be approximately 500 m in depth. Presently, the pit depth is almost 250 m below original surface. The complexity of geological structures, such as faults, has caused a number of geotechnical difficulties. In a challenging lowwall area, called Area 4.1, an inclined weak bedding plane, G1, will be daylighted along the lowwall as following by mine plans. The dimensions of Area 4.1 are nearly 300 m wide and 90 m high. The friction and dip angles of the G1 interface are reportedly 12° and 15°, respectively. A three million m3 claystone block, resting above G1, would potentially slide down, and possibly cause a massive failure. EGAT engineers are acutely aware of the potential gigantic sliding failure and are modifying the mine plan in Area 4.1 to improve mine safety and minimize the displacement of the potential sliding block, reduce the possibility of failure and lower the additional mining cost as much as possible. The cut and fill mining technique was selected and studied to achieve those goals for mining in Area 4.1. With this mining technique, G1 will be partially daylighted. Therefore, an arch formation is induced with a sliding block above the mining area, which could perform as a temporary support undercutting a certain span. Initial studies of the behavior of the partially undercut slope are presented in this paper, along with a review of the similar failure history in Mae Moh mine and a 3-dimensional numerical model of the mine. The failure history review provides an estimation of undercut span without failure. The three-dimensional numerical model results, using 3DEC, gave an initial approximation of the displacement of the sliding block in Area 4.1. The next exciting study of the behavior of partially undercut slope is a trial undercut slope field experiment in Area 4.1. Currently, a trial undercut slope field experiment in Area 4.1 is under construction. In the field experiment, a number of monitoring programs will be installed in Area 4.1 to monitor and obtain information to allow a better understanding of the behavior.

Jun 1, 2012

By R. B. STEWART

A few days ago, while reading a report of the late Dr. Robert Bell in preparation for this afternoon's meeting, I found some impressive figures concerning the magnitude of the Hudson Bay basin. From the waters of the Bay itself, this great territory extends eastward 500 miles, westward l,300 miles to the Rocky mountains, and southward to the source of the Red river. It has a width of 2,100 miles from east to west, and a length of l,500 miles from north to south. Its area is almost three million square miles. It is not, of course, my intention to review the natural resources of this vast territory, but to confine my remarks to that portion of it adjacent to the waters of Hudson bay. A number of erroneous ideas exist in the minds of many concerning this northern country, especially as regards its latitude and climate. Burwell, at the entrance of Hudson strait, is in the latitude of 60 degrees or roughly that of the north of Scotland. The southern end of James bay has about the same latitude as the northern end of Vancouver .island.

Jan 1, 1928

By Joseph Bradley

THROUGHOUT this article, minerals used in the paint industry are designated 'pigments'. They may be classified in two groups: (1) Pigments which are used in the state in which they occur in nature, requiring only mechanical preparation. (2) Pigments which require heating or chemical treatment before use, in order to obtain from them a product of the desired quality or shade of colour. They may be further classified according to colour, as follows: White Pigments .-These include calcium carbonate (chalk, marble), gypsum and alabaster, kaolin-or china-clay, and magnesia. However, the white pigments most extensively used are compounds prepared chemically from minerals containing lead, zinc, titanium, and antimony. The white pigments are of particular importance because, not only are they used by themselves, but they also serve as adjuncts to other colours for the production of special shades. Yellow Pigments.-These are mainly naturally occurring ferric hydroxides, as limonite and bog iron ore, or similar. compounds prepared artificially. Brown Pigments .-Pigments of this group are distinguished for their beauty and depth of colour, and many of them are used in the finest of paintings. Familiar names are sienna, umber, and Vandyke brown. They are for the most part ferric hydroxides, containing varying amounts of water; but the group also includes a manganese brown, which consists chiefly of a mixture of oxide and hydroxide of manganese. Red Pigments.-Chief among this group is ferric oxide, known under various trade-names, such as Canadian red, Persian red, etc., and also the much prized and somewhat rare vermilion. The pigment used is either naturally occurring hematite, de-hydrated limonite, or artificially produced red ferric oxide.

Jan 1, 1937

By Himmelman. Nicholas P.

In this paper, the hardware foundations and data collection methods of a real time collision avoidance system for electric surface mining rope shovels are described. The primary goal of the system is to help a shovel operator avoid accidentally colliding the shovel?s dipper with either a nearby haul truck or the shovel?s tracks. To achieve this goal, the system requires complete and precise knowledge of the shovel?s geometry and movement, as well as the location of any nearby haul trucks. This paper describes the subsystems created to acquire this necessary information. This system is unique in that all of its components are mounted solely on the shovel and that it is designed to be easily retrofitted to a shovel without significant modifications.

Oct 1, 2009

By Ken McIntyre, Trodel Wolf-Dieter

"Sirius Minerals is a UK based fertilizer development company focused on advancing into operation its polyhalite project in North Yorkshire, England. The operation is known as the Woodsmith Mine which has an estimated 2.7 Billion Tonnes of reserves and is currently in the construction phase. DMC Mining Services was selected to carry out the construction of four shafts for the project, a production shaft of 6.75m diameter to a depth of 1594 m, a ventilation shaft of 6.75 m diameter to a depth of 1565 m, and two additional shafts to support the construction of the material transport system (the MTS and Lockwood Beck intermediate) to 360m in depth for servicing the underground conveyor network for transport of product from the mine site to the costal port facilities located at Teasside. This paper will review the status of the project to date and the innovative approaches that DMC is utilizing to ensure a safe and successful shaft sinking project. INTRODUCTION The Woodsmith Mine in North Yorkshire is a Sirius Minerals-owned deep potash and polyhalite mine located near to the hamlet of Sneatonthorpe, Whitby in North Yorkshire, England, approximately 75 km east of York. The area of interest is more than 700 km2. The £3.2 billion project is to develop the Woodsmith Mine to extract polyhalite, and a tunnel system to transport it to a materials handling facility and harbour at Teesside. The site is the world's largest and highest-grade deposit of polyhalite and is expected to produce 20 million tonnes of polyhalite, potash and POLY4 per annum, as well as create over 1,000 direct jobs and many more indirectly. It has the potential to generate over £2 billion of annual exports for the UK. As the project will require mining to be undertaken in the North York Moors National Park, many objections were raised about the mine. Sirius Minerals has gone to great lengths to ensure that the project is sensitive to the local landscape, including: mineshaft head frames that will be positioned below ground to reduce their visual impact; surface buildings will be kept to a minimum; and the entire site will be landscaped and screened by existing woodland to blend in with the surrounding area. The project will also abide by strict environmental limits which govern our activity during the construction phase."

Jan 1, 2019

By G. J. Simandl

"Since the 1980s, China has become the predominant producer of REEs. Recently, it introduced REE export quotas and this started a world-scale REE exploration rush. REE resources are concentrated in carbonatite-related deposits, peralkaline igneous rocks, pegmatites, REE ± P veins, ion adsorption clays, placers, and some deep ocean sediments. REEs could also be derived as a by-product of phosphate fertilizer, U processing, Ti-Zr-bearing placers, and exploitation of Olympic Dam-type sub-type of IOCG deposits. The ideal REE development target would be located in a politically stable jurisdiction such as Canada. REE grade and tonnage, mineralogy, and permissive metallurgy are some of the key technical factors that could be used to screen projects. INTRODUCTIONAccording to the International Union of Pure and Applied Chemistry (IUPAC), the term “rare earth elements” (REEs) encompasses yttrium (Y), scandium (Sc), and the lanthanide series: lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), and lutetium (Lu). This definition is used throughout this paper.REEs are subdivided into light (LREE) and heavy (HREE) categories. LREEs include, Sc, La, Ce, Pr, Nd, Sm, Eu, and Gd and HREE include Tb, Dy, Ho, Er, Tm, Yb, Lu, and Y. Promethium (Pm) does not occur in nature. Concentrations of individual LREEs in the upper crust of the Earth are comparable to those of base metals. Even the least abundant REE (Lu) is about 200 times more abundant than gold.The production of REEs, reported in the form of oxides (REOs), for 2011 is estimated at 140 000 t (Figure 1a). Although high technology industries can substitute several REEs with other materials, these substitutes are typically more expensive or less effective than the REEs they replace. A number of countries, including the United States, consider several REEs essential for national security, their economy, and a general reduction in green house gas emissions. The forecasted demand for individual LREOs is much higher than that of HREOs (Figure 2). Dy, Eu, Tb, Nd, and Y are essential for the US economy and subject to predicted supply disruptions (U.S. Department of Energy, 2010)."

Jan 1, 2012

By M. R. KEYS

"The property is about 120 miles north of Red Lake in the Favourable Lake area, district of Kenora ( Patricia part) , Ontario. The original discovery was staked by K. Murray in December, 1927. The first development work was done by the Favourable Lake Mining and Exploration Company. In 1936 Newmont Mining Corporation acquired control of the property and developed it to production by September, 1939. Production to the end of 1945 had a value of $7,534,656 from 441,457 tons of ore, an average value of $17.04 a ton . This production was mainly from gold and silver, with lead and zinc of subordinate importance.The rocks in the vicinity of the mine trend in a north-south direction. From east to west the sequence is: (1) A dark-coloured, massive rock, presumably a flow, composed mainly of quartz and biotite. ( 2) A buff- coloured, scricitized rock locally containing quartz phenocrysts and black hornblende. This is an alteration product of the dark variety and is later than the folding. It occurs mainly within the dark rock. (3) A series of sediments comprising thin beds of greywacke, grit, quartzite, conglomerate, and iron formation. ( 4) A gabbro sill, now largely altered to amphibolite.With the exception of the buff type, these rocks dip 80°E. The buff rock has a very irregular outline in comparison with the other rocks and appears to dip somewhat more flatly east. Felsite and diorite dykes are also present. These have a general strike of S.60°E. and dip 65°S .W. A post-ore diorite dyke trending N.15°E. occurs about 2,000 feet east of the mine area."

Jan 1, 1954

By Kretschmar. U. H.

Fieldwork in the Meguma of Nova Scotia and Archean equivalents shows that bedding-parallel quartz lode gold veins (LVs) commonly occur at the top of graded elastic sequences. We define a "gold cycle" (GC) by analogy with Bouma turbidites and show that most "shear zones" and "lamprophyres" correspond to the upper pelagic-pelitic (E) division. We describe GCs from Archean Chester Twp, ON; Elmhirst, ON; Bourlamaque, QC; "intrusions" and interpret them as crystal tuffs and tuff-breccias. Extensive early Archean pyroclastic volcanism is implied: the genesis of trondjhemite-tonalite-granodiorite (TTG) rocks must be re-examined. The geopetal nature and asymmetric alteration of LVs indicates genesis from sea-floor hydrothermal vents. Textures suggest that often quartz was deposited as a gel. Vent geometry (fracture, point source or diffuse seep), bottom topography and vent spacing is reflected in wade-thickness plots. GC facing directions survive metamorphism. The Bourlamaque batholith was a flat-lying sheet of quartz-feldspar-hornblende crystal tuff, and isoclinal folding has repeated one or more gold-bearing horizons. Syngenesis clarifies and simplifies LV formation with major implications for models. Exploration becomes more cost-effective. Basin analysis, whole rock geochemistry, ore lens geometry and vent spacing can be used.

Jan 1, 2011

"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By D. R. Boyle

"The Murray Brook precious metal (Au, Ag) gossan deposit is one of nine supergene mineral deposits that have developed over polymetallic massive sulfide deposits in the Bathurst Camp of New Brunswick. Reserves consist of 1.9 Mt of gossan containing 1.53 g/t Au and 65.9 g/t Ag. The supergene zone at Murray Brook consists of six distinct units: a) altered massive sulfide, b) pyrite-quartz sand, c) massive sulfide gossan, d) disseminated sulfide gossan, e) ferruginized wallrock, and f) leached bedrock. The massive sulfide gossan constitutes the main body of economic mineralization and consists of goethite, primary quartz, secondary amorphous silica, K-Fe-Pb-As- Sb-Ag hydrated sulfate and oxide minerals (beudantite, plumbojarosite, jarosite, bindheimite, scorodite), trace cinnabar, and cassiterite of primary origin. The order of stability of sulfide minerals during oxidation was pyrite _ arsenopyrite _ galena _ Bi-Sb sulfosalts _ chalcopyrite _ tetrahedrite group _ sphalerite.Two mass balance techniques (isovolumetric and conservative element) indicate elemental depletion in gossan relative to primary ore in the order: S>Cd=Zn>Cu=Mn>Na=Ca>Fe=Al=V> Mg= K=Se=Hg>Pb>Ti>Ag>Mo=P>Ba; and enrichment in the order Au>As>Sb>Si>Bi. Tin, as cassiterite, is conservative.Mineralogic and paleomagnetic data suggest that the gossan deposit formed under a warm temperate climate throughout the Pliocene. The rate of oxidation and the compositional nature of the ore was significantly influenced by: a) the position of the primary sulfide zone in a downward moving hydrological system, b) primary sulfide composition and zonation that promoted the development of a strong electrochemical oxidation system, and c) pronounced intercalation of carbonate and sphalerite mineralization in sulfide zones, which promoted rapid development of secondary porosity, permeability and downward flow of oxygenated groundwater.During progressive oxidation and physico-chemical erosion of the gossan zone, Au was transported downward in groundwaters, probably as a Auo colloid complex, to be concentrated in the lower horizons of the gossan profile. The precipitation of Au was greatly increased in the pyrite/arsenopyrite zones. Gold concentration was multi-cyclic with continual dissolution and nucleation of the metal until final concentration in the void structures of the gossan. Leaching experiments and microprobe analyses indicate that Au is present in the gossan as submicron composite sols of Au-Ag-silica."

Jan 1, 1995