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By John C. Ferm

This report summarizes the results of an investigation of geologic factors that contribute to roof quality in underground mines in the Pocahontas #3 coal bed in southern West Virginia and southwestern Virginia. The investigation consisted of three phases, the first of which was selecting for detailed study five mines which represented the range of roof conditions, mining practices and geologic phenomena. This was accomplished by a statistical analysis of questionnaire data from 35 mines. The second phase consisted of detailed mapping in a "good" and a "bad" top area in each of the five selected mines and resulted in a qualitative assessment of geologic factors contributing to roof £alls. In the third phase, five mines were selected in which most non-geologic factors believed to contribute to roof falls were relatively constant but displayed a wide variety of geologic characteristics. Data from these mines were analyzed to test the qualitative assessments from Phase II. The primary result of this investigation is that slickensides arising from different geologic causes are the major geologic features leading to roof falls. These slicken-sides are found in ancient slump deposits, fire clays and sandy fire clays and channel contacts. Falls also occur where thick sandstone bodies directly over-lying the coal contain abundant shale or ironstone pebbles and coaly strips. The best top material is a sequence which consists of shale grading upward to sandy shale and sandstone within 30 feet of the top of the coal. Thick sand-stone units (301) without pebbles also provide good top.

Jan 1, 1978

By J. E. Owen

EXPERIMENTS on twenty-six drilling muds were carried out in an effort to establish a correlation between the apparent viscosity values for these muds as obtained with the Marsh funnel and the Stormer viscometer. This required a calibration of both instruments in which the density of the calibrating liquids was taken into account. Corresponding to the Marsh-funnel viscosity values that were obtained at 1500 c.c. in, 1 qt. out, equivalent Stormer viscosity values were obtained at a Stormer cylinder test speed of approximately 1100 r.p.m. Further, a linear relation between the logarithms of the Stormer cylinder test speed and the resulting apparent viscosity was found to exist for the muds tested for 200 to 1000 r.p.m. The significance of the slope of this linear relationship is discussed as it applies to the field use of drilling muds. It was concluded that Marsh-funnel viscosity measurements are expressible in absolute units that may be correlated with Stormer viscosity measurements, provided these are made in the manner described in the paper. INTRODUCTION The Marsh funnel is used almost universally to determine the viscosity of drilling muds in the field. The Stormer viscometer is commonly used to determine the viscosity of drilling muds in the laboratory. With the Marsh funnel, the time required for one quart of mud to flow out of the funnel originally filled with 1500 c.c. is often taken as the measurement of viscosity. With the Stormer instrument, drilling mud is tested at a cylinder speed of 600 r.p.m. and by means of calibration data the apparent viscosity is expressed in absolute units. Neither of these instruments is an absolute viscometer, and apparent viscosities obtained with either are influenced by the arbitrarily standardized conditions under which the measurements are made. It is disconcerting to the man in the field to be told that laboratory measurements of the viscosities of a group of muds differ widely, when he has already observed that they have identical viscosities when tested in the Marsh funnel. Drilling muds are not perfect fluids, therefore it is not surprising to find a lack of correlation between the apparent viscosity of a mud as determined with the Marsh funnel and that determined with the Stormer viscometer. The work described here was undertaken to develop a correlation between Marsh-funnel and Stormer viscosity measurements. To a considerable degree this has been accomplished. This study has resulted not only in a better understanding of the two viscosity instruments and the data obtainable from them, but has given considerable information regarding the viscosity characteristics of drilling muds. EXPERIMENTAL PROCEDURE Calibration of Harsh Funnel and Stormer Viscometer The first step in the experimental procedure was the calibration of the Marsh funnel and the Stormer viscometer with

Jan 1, 1941

By Bowra N

Working capital is best described as money that must be supplied from a company's treasury to buy inventories for raw materials and finished products and to provide credit to customers who have not yet paid for delivered products. Working Capital requirements for resource projects are to a large extent, dependent on specific characteristics of the projects concerned. Important variables are the nature of the project and speed with which sales can be realised. The project's location is also important as this will influence inventory levels. Working capital requirements have a time profile, the present value of which can represent a significant portion of a projects overall capital needs. A significant component of a project's working capital is not readily recoverable or able to be reassigned should the project fail or be deferred.

Jan 1, 1986

By Hart J. G, Anderson J. S

The presence of platinum metals in the nickeliferous copper ore of the Thomson River Copper Mine near Walhalla, Victoria, was first revealed in 1905 by assays made in the laboratory of the Department of Mines (1).These disclosed the presence in the ore of 5 dwt. platinum metals, 1 dwt. gold and 13 dwt. silver per ton. Attempts to isolate the platinum-bearing mineral were unsuccessful, and the absence of obvious native platinum led the assayer, Mr. P. G. W. Bayley, to suspect that the platinum might be present as sperrylite. Subsequently, Mr. C. M. Lyons, then metallurgist to the Long Tunnel Gold Mining Company, Walhalla, tried to isolate the platinum mineral from samples of ore containing as much as 7 dwt. platinum metals, but again without success.In 1912, a sample of copper matte from this ore was submitted to Messrs. Johnson, Matthey and Company, Limited of London, for analysis. The analysis, which is quoted below by their courtesy, revealed tnat a large proportion of the metal pi'eviously reported as platinum was palladium, there being about two parts of palladium in the matte to one part of platinum.

Jan 1, 1942

By Jonas Svensson

A new method is described for the production of cold-bonded pellets using a hydraulic binder, such as portland cement. Large-scale pilot-plant tests have proved that self-fluxing pellets of high reducibility and good handling strength can be made by the method. Blast-furnace trials have shown that the pellets are an acceptable burden material, comparable with self-fluxing sinter or heat-hardened pellets. Economic factors of commercial-scale production are discussed. The Grangcold Pellet Process—for which patents have been applied or already granted in a number of coun-tries—uses a hydraulic adhesive such as portland cement, slag cements, pozzolanic cements, etc., for the production of cold-bonded pellets. The idea of using a hydraulic binder for the agglomeration of iron-ore fines is not new. Portland cement was proposed as an adhesive for cold-bonded iron-ore briquettes in patents granted more than 50 years ago.' In a report on the briquetting of iron-ore fines, published in Stahl und Eisen in 1959; it is stated that briquettes bonded with portland cement are used on a small scale at an ironwork in Germany. According to the report, the briquettes showed excellent strength in the blast furnace although their general use was made impossible because they required a long hardening time, during which they are sticky, soft, and difficult to store and handle. The Grangcold Pellet Process has overcome this particular disadvantage by mixing the balls with a suitable amount of the balling concentrate before storing them. The pellets are embedded in the concentrated during storing in such a way that they are isolated from each other and thus prevented from sticking together to form clusters. Thanks to the embedding concentrate, the pellets are subjected to a more or less uniform pressure from all sides which does not deform them. Thus, the mixture can be stored in a stockpile or in a bin until the pellets have hardened sufficiently. The concentrate is separated from the pellets by means of screening. The concentrate is returned to the balling operation and the pellets are either shipped to the blast furnace or stored for final hardening. The binder preferred for the Grangcold Pellett Process is portland-cement clinker, ground without the admixture of gypsum in order to avoid sulfur in the pellets as far as possible. Usually a 10% binder content is used. Two-thirds of the portland-cement clinker consist of lime and the rest is silica, alumina, and ferric oxide. Thus, self-fluxing or overbasic pellets are produced with this binder if the amount of silica in the concentrate used does not exceed 4%. The Grangcold Pellet Process was developed by the mineral Processing Laboratory of the Granges Co. Work started in 1963 with batch-scale tests. In 1966, a small pilot plant was put into operation in which 1800 tons of pellets were produced using 10% of rapid-hardening portland cement as a binder. Favorable results from a blast-furnace test with this batch led to the decision to erect a larger pilot plant which went into production in the summer of 1967. Since then, approximately 100,000 tons of cold-bonded pellets have been produced, mostly with 10% gypsum-free portland cement as a binder. Several full-scale blast-furnace trials have been performed with the pellets. The results of the trials indicate that the Grangcold pellets constitute a satisfactory blast-furnace feed. An industrial plant for the production of Grangcold pellets with a rated capacity of 1.5 million tpy is now under construction at the Granges Co.'s mine at Grangesberg. The plant will come into operation in the summer of 1970. Results from Laboratory Work Pellets made from iron-ore concentrate bonded with portland cement harden slowly and their handling is very critical until they have hardened enough to loose their stickiness. It is therefore especially important to study the progress of the hardening action and the factors influencing it. This is best achieved by investigating the relationship between the compressive strength of the cement-bonded pellets and the curing time under varied conditions. The general course of this relation-

Jan 1, 1971

By Meimei Zhang

In the overall open pit mine planning process, mining phase design is a strategic driver in guiding and constructing the block extraction sequence and determining the annual net cash flow distribution. Mining phase design should obey some practical constraints, such as ?minimum mining width? and ?flat mining phase bottom?, to allow space for haul road development and truck and shovel access on each bench. However, these practical mining phase design requirements are not taken into account in all first-cut mining phase design methods and post-processing is always required to convert an impractical design to a practical one, resulting in a potentially significant loss of Net Present Value (NPV) relative to the first-cut impractical designs. In this paper, we present a method using a meta-heuristic algorithm ? Simulated Annealing ? to enforce those practical constraints in determining a mineable phase design whilst ensuring minimum NPV loss.

Oct 1, 2009

By F. S. Crawford

This study was made to find methods of preventing back strains, among workers in brick plants, however, the information should apply to other industries that employ hand labor too process materials. The report is based on information in letters from. Bureau of Mines engineers and other safety men in the United States who visited numerous brick plants. Back strains, as wall as hernias and other muscular strains, result when certain body structures are subjected to strains greater than, they can withstand. Such breakdowns may be prevented simply by not straining these body structures. This is simple in theory but complicated in practice. It requires primary education of new workers and reeducation of older workers in the best method of lifting, preemployment physical. examinations to select employees for the jobs that require constant lifting, all possible mechanization of material-handling operations, relocation of machinery, and elevation of working surfaces to reduce to a minimum the muscular effort the workers must exert to perform operations impossible to mechanize. Accidents of any kind are a total bee for the American economy and decrease productivity; whereas mechanization raises the level of productivity and constitutes progress toward total safety. Heavy lifting should be done mechanically whenever possible, saving the men to direct the machines. This is an essential step in preventing strain accidents.

Jan 1, 1953

By Aner W. Erickson

"Magnetite iron deposits on Tolstoi Mountain were examined as part of the investigations by the Bureau of Mines of iron and copper ores on Prince of Wales Island. The Tolstoi Mountain project was a part of a program for investigating mineral deposits in Alaska, under the general supervision of R. S. Sanford, acting branch chief.A preliminary examination was made by S. P. Holt, mining engineer of the Bureau of Mines, in company with John Reed, L. A. Warner, and W. S. Twenhofel of the Federal Geological Survey, on July 14, l943. Three samples were taken, rough estimates were made, and it was proposed that the area be mapped, topographically and geologically,. Dip-needle work was added to the program, and it was decided that, should results warrant, the deposits would be diamond-drilled.From March 26 to May 28, 1944, the deposits were examined thoroughly by Bureau of Mines personnel under the direction of the author. Thirty-two acres were mapped with contour intervals of 10 feet, grids were established covering the principal outcrops, over 1,500 dip-needle readings were secured, and the magnetite bodies were outlined. Additional information was gathered by trench inch and channel-sampling, 600 linear feet of trench being dug and 32 channel samples being cut. Finally, the mapped area was checked for nonoutcropping deposits by taking dip-needle readings at 10-foot intervals along the traverse lines, creeks, trails, and all outstanding topographical features. This re-connaissance work gave sufficient coverage of the 32 acres to eliminate the possibility of further magnetite bodies of any consequence remaining undiscovered.Acknowledgment is made to Nile Johannsen, assayer, Territorial Department of Mines, Ketchfkan, Alaska, for determination of samples.The deposits are on Prince of Wales Island in Southeastern Alaska near Tolstoi Pay, a deep-water indentation at the northwest and of Kasdan Peninsula. The physical features are shown on figures 1 and 2 and the location of the deposition figure 3. Old workings were found on the west side of Tolstoi Mountain; between elevations of 650 and 1,150 feet, at distances of 3/4 to 1-1/4 miles from the east shore of Tolstoi Bay.Access to the area is over a brushed foot trail built by the Bureau of Mines. Topography would permit construction of either surface or aerial tramways at moderate cost but would make road building expensive. Deep-water navigation, permitting inexpensive water transportation, is possible the year around.Kasaan Peninsula is an area of moderate relief, being considerably less rugged than the mainland to the east. Most of the mountains and ridges are less than 2,500 feet in height and show evidence of having been covered by the ice cap of the Pleistocene age. Rock exposures below elevations of 2,000 feet are limited, as extensive overburden 2 to 20 feet deep covers the greater part of the peninsula."

Dec 1, 1948

By Arno C. Fieldner

The determination and publication of data o the chemical and physical properties of American coals have been primary functions of the Bureau of Mines since its creation in 1910. In recent years this program has been expanded to meet increasing needs for information on the suitability of coals for the production of coke, gas, and byproducts, and within the last year an experimental coal-hydrogenation plant has been completed. With this addition, the Bureau is able to cover every phase of coal utilization, including combustion, carbonization, liquefaction, and complete gasification. The need for this information is increasing not only to meet the requirements of consumers but also to give the data required to establish the classification and minimum selling price of coal by the National Bituminous Coal Commission.

Jan 1, 1938

By Shaohua Ju, Huang Chang-yuan, Lu Shuaidan, Peng Jin-hui, Wu Guoqin, Yaqian Wei, Zhang Li-bo

"The contrastive studies of microwave and conventional roasting copper residue from zinc hydrometallurgical was carried. The experimental results showed that the microwave roasting has the higher dechlorination rate in the same condition such as temperature, heat preservation time and atmosphere. When the samples with 100 mesh grain size, the Cl content turned from 14.27% to 1.33% and the dechlorination rate achieved over 90% at 400°C with 2h microwave roasting. And in the same conditions, the materials' dechlorination rate after conventional roasting just reached around 78%. The phase changes of the roasting process was investigated with X-ray diffraction analysis.IntroductionCl element can be accumulated gradually in the solution of Zinc hydrometallurgical system. When Cl content in electrolysis solution comes up to 100 mg/L, the stability of electrodeposits process would be severely affected [ 1]. It would not only accelerate the consumption of cathode and anode plate, elevate the power consumption, but also cause serious corrosion of device, increase production costs and lower the quality of electrolytic zinc [2]. Thus, C1- contained in the solution should be removed before electrodeposits."

Jan 1, 2013

By Zdenek D. Hora

British Columbia is an important producer of a variety of industrial minerals for both domestic and export markets. Some commodities such as limestone, dolomite, gypsum, calcium carbonate, silica, barite and magnetite are raw materials for well-established industries located in British Columbia, Alberta and northwestern USA. Others, like magnesite, sulphur, jade, asbestos, dimension stone and clay products, are mainly exported in processed form to overseas customers. Companies are developing markets for relatively new mineral products, including pumice, volcanic cinder and zeolites. A number of attractive geological targets have been identified by industry while research by government geologists has outlined the potential for refractory minerals, gemstones, garnet, nepheline syenite, carbonatites, residual kaolin, igneous apatite and peat.

Jan 1, 2001

By W. H. Frederic, A. C. Fieldner, W. A. Selvig

"Low-rank coals have a pronounced tendency to disintegrate or ""slack” when alternately dried, and wetted by exposure to the weather. The more readily a coal slacks the greater is its tendency to ignite spontaneously and the more care must be used in its shipment and storage. Lignite slacks very readily when exposed to the weather. Slacking trouble is also experienced in shipping and storing subbituminous coal, but not to the same extent as with lignite. As a rule, bituminous coals are only slightly affected by weathering and in general may be classified as nonslacking coals. The slacking tendency of subbituminous coal is one of the characteristics that is used to distinguish it from bituminous coal. An accelerated laboratory method of test was developed to measure such slacking tendencies. This method was applied to a number of coals, principally from the State of Washington, and the method and the results obtained are given herein.Helpful information concerning slacking tendencies of coal was received from Marius R. Campbell, senior geologist U. S. Geological Survey.Coals that slack readily contain relatively large amounts of moisture. When exposed to the weather such coals lore moisture rapidly. As the coal loses moisture at the surface there is a gradual drift of moisture from the interior of the piece to the surface. If the loss of moisture at the surface proceeds at a faster rate than it is replaced by moisture from the interior of the coal piece, there undoubtedly in greater shrinkage of the coal at the surface as tom-pared to the interior of the piece and stressed are generated in the surface coal.These stresses in the surface coal cause it to crack and disintegrate.Likewise, when the air-dried coal is wetted by rain, the exposed surface of the coal pieces gain moisture more rapidly than the interior of the piece, causing greater expansion in the surface coal and the coal breaks down further. As this process of air drying and wetting is continued when the coal is exposed to the weather, the slacking proceeds and the exposed lumps of coal may disintegrate completely."

Nov 1, 1930

By S. K. Nandy, K. F. Unrug

The behavior of the immediate shaly roof within a drift mine in eastern Kentucky, operating in the Coalburg seam, was monitored with roof bolt dynamometers. The dynamometers used were capable of providing readings up to a maximum load of 66.72 kN (15,000 lbs), + 0.022 kN (5 lbs). To observe the influence of moisture on the rate and extent of roof deterioration, 57dynamometers were installed on roof bolts anchored in intake and neutral airways. Monitoring was conducted during the period January 1985 through January 1986, in order to cover a full cycle of dry and wet mine conditions associated with seasonal changes. Analysis of the data showed a trend of roof deterioration induced by condensation and eventual penetration of moisture within the immediate roof bedding planes, leading to rapid disintegration of the mine roof.

Jan 1, 1987

By H. O. Seigel

This is an introductory paper on a new method of prospecting for mineral deposits which has been developed by Scintrex Limited. The method, which we call Luminex, for luminescent mineral exploration, is based on time- resolved mineral luminescence created by an ultraviolet light source. It has the ability to detect and resolve a group of key minerals which are either ore minerals themselves, or more often, are accessory or pathfinder minerals for certain types of economic ore deposits. Fortunately, these minerals are commonly found at the earth's surface, even in areas of considerable weathering. The method extends the range of mineral deposits which are remotely detectable from the air to include those such as tungsten, tin, molybdenum, gold and bedded lead-zinc deposits and, is therefore, a natural supplement to our three classical methods of airborne geophysics.

Jan 1, 1983

6889. Aslakson, C. I., and Swick, C. H. Gravity Observations in Peru and Colombia. Coast and Geodetic Survey,-Special Pub. 233, U. S. Government Printing Office, Washington, D. C., 1943, 18 pp. (Price, 10 cents.) In accordance with the policy of cooperation among American republics, the-United States Coast and Geodetic Survey in 1941 made gravity surveys in Peru and-Colombia. The information was desirable for determining the figure of the earth for geophysical purposes and for studying the relationship between intensities of gravity and deflections of the vertical. The survey instrument was the Brown pendulum apparatus. 11 gravity stations were established in Peru and 13 in Colombia. The results obtained at these stations are given in a table covering observed gravity, theoretical gravity, and anamalies. - V. S.

Jan 1, 1943

In 1990, the Bureau of Mines (BOM) conducted a mineral investigation of the mines and prospects in the East Mojave National Scenic Area (EMNSA), San Bernardino County, California During field work, BOM identified 701 mines and prospects in EMNSA for which the geology, mineral resources, and mining history were compiled and summarized. Analytical results for 1,188 rock samples collected are tabulated. Total value of identified resources in EMNSA is $5.0 billion. Twenty-four mines and prospects were deemed profitable under current economic conditions. Development could generate considerable economic benefits to San Bernardino County. Potential economic benefits from mining the deposits were evaluated under the following access restrictions for EMNSA: 1) full access, 2) HR 3460, and 3) S 11/HR 780. Under the full access scenario, cumulative mine revenues are $3.0 billion, cumulative personal earnings at mines and supporting industries are $0.94 billion, and annual jobs at mines and supporting industries are 2,379. Under HR 3460, mine revenues, personal earnings, and annual jobs are $2.9 billion, $0.88 billion, and 2,165, respectively. Under S 11/HR 780, mine revenues, personal earnings, and annual jobs are $1.0 billion, $0.32 billion, and 936, respectively.

Jan 1, 1990

Book Review Gold Metallurgy in South Africa, edited by R. J. Adamson and published by the Chamber of Mines of South Africa, Johannesburg, 1972. The metallurgical processes used for the recovery of gold from Witwatersrand ores were first described in A Text Book of Rand Metallurgical Practice, published in 1912 and subsequently revised in 1926. This was followed by Gold M etall1trgy on the Witwatersrand by A. King in 1949. New Publications Elements of Practical Coalmining, S. M. Cassidy (editor), New York, Society of Mining Engineers of AIME, 1973, $16.50. Future Enerey Outlook, J. A. Pederson (editor), Colorado School of Mines Quarterly, vol. 68, no. 2, April 1973, $6.00. Guide To The Preparation Of Papers For Publication In The Journal Of The South African Institute Of Mining And Metallurgy The following notes have been compiled to assist authors in the preparation of papers for presentation to the Institute and for publication in the .Journal.

By John W. Kopp

A major concern with blasting at surface mines is generation of ground vibrations and airblast and their effects on nearby residences. This Bureau of Mines report looks at the use of millisecond delays in blast design and their effect on the resulting ground vibrations and airblast. A total of 52 production blasts were instrumented and monitored at a surface coal mine in southern Indiana. Arrays of seismographs were used to gather time histories of vibrations and airblast. The data were analyzed for peak values of vibration and airblast and for frequency con-tent. Various delay intervals were used within and between rows of blastholes. Delay intervals within rows were 17 and 42 ms, and those between rows ranged from 30 to 100 msj these intervals are equivalent to 0.5 and 1.3 ms/ft within rows and 1.2 to 4.3 ms/ft between rows. Sub-sonic delay intervals within rows reduced airblast by 6 dB. Large delay intervals between rows reduced the amplitude of ground vibrations; their frequency depended primarily upon the geology of the mine site.

Jan 1, 1986

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

"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