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By R. F. Favreau, R. A. Morin, G. W. Kuzyk, P. J. Babulic, N. J. Tienkamp

"Atomic Energy of Canada Limited is constructing an Underground Research Laboratory (URL) as part of a comprehensive program to evaluate the concept of nuclear fuel waste disposal deep in crystalline rock formations. Careful blasting methods have been used to minimize damage to the excavation surfaces. Good wall quality is desirable in any excavation. In excavations required for nuclear waste disposal, the objective will be to minimize blast-induced fractures which may complicate the sealing requirements necessary to control subsequent movement of groundwater around a sealed disposal vault. The construction of the URL has provided an opportunity for the development of controlled blasting methods, especially for drilling accuracy and optimization of explosive loads in the perimeter and cushion holes. The work has been assisted by the use of blast simulations with the mathematical model Blaspa.This paper reviews the results of a recent project to develop a controlled method of full-face blasting, and compares the observed field results with the results of a blast simulator called Blaspa. Good agreement is found between the two, and the Blaspa results indicate quantitatively how the blasting may induce damage in the final excavation surface. In particular, the rock in the final wall may be stressed more severely by the cushion holes than by the perimeter holes. Bootleg of the rock between the perimeter and cushion rows occurs when the burst out velocity imparted to it by the explosive loads in the perimeter holes is inadequate. In practice, these findings indicate that quantitative rock stress and rock burst-out velocity criteria can be established to minimize wall damage and bootleg. Thus, blast simulations become an efficient way to design controlled blasting and to optimize quality of the excavation surf ace."

Jan 1, 1989

By O. E. Humeniuk, A. I. A. Salama, M. W. Mikhail

"Performance testing of prepartion plants is referred to as plant audit. It evaluates plant performance under normal operating conditions and is aimed at improving yield through knowledge of actual process performance and interactions between different processes in a plant.This paper describes the program to evaluate the performance of several Canadian preparation plants. The performance test requires the planning of a sampling campaign that would include all circuits in the plant. Samples are analyzed to determine washing characteristics (screen and float-sink), ash and per cent solids of feed and products of separation units in the plant. Performance characteristics are established based on analysis and material balance. Specific recommendations can then be made to improve recovery, and identify and explain potential causes of apparent deficiencies.The objectives of the program are to reduce the cost of production by improving recovery of clean coal and, in tum, to reduce disposed tailings, establish baseline information on coal preparation plants performance in Canada, and define R&D work needed to optimize plant operation."

Jan 1, 1993

By T. M. Siew

"This paper begins with a brief discussion of the geology of the Newfoundland Zinc Mine area. The results of groundwater studies and pumping tests are then presented. It was decided that groundwater in the mine could best be controlled by conventional sump pumping and grouting. The system is fully described, as well as plans for improvements on the method. LocationThe Newfoundland Zinc Mine is located in the Great Northern Peninsula of Newfoundland, six miles northeast of Daniel's Harbour. The mine is situated at an elevation of approximately 350 feet above sea level, 5 miles farther inland , west of the long range of mountains which rise abruptly with elevations of over 2,000 feet above sea level.GeologyThe ore deposits occur in lower Ordovician carbonate rocks that form part of the stable St. Lawrence platform, which is mainly composed of (1) the lower Cambrian Labrador group, (2) the upper Cambrian to lower Ordovician St. George group, (3) the disconformity overlying Middle Ordovician limestones and shales of the Table Head formation and, (4) two overlying klippen composed of Cambrian and lower Ordovician rocks.The ore deposit is a Mississippi Valley type of the Tennessee variety, having proven are reserves of 5.3 million tons averaging 9.70/0 zinc from eleven ore zones which exist in an area of 5.5 square miles.Among these ore zones, the L zone is the major underground mining area, and is by far the largest of the known deposits. It has proven are reserves of 3.4 million tons with 11.5% zinc; this underground development has been inprogress since 1974.Stratigraphically, the orebody, which occurs about 300 feet below the disconformities between the Table Head and St. George formations, is situated in the upper St. George formationof lower Ordovician age.The upper St. George formation of the L zone is divided into three main units (Fig . I) : the underlying lower limestone the middle grey dolomite pseudo breccia unit and the overlying siliceous dolomite unit. In this area of the mine, the beds of the St. George formation dip gently west to northwest to 10 to 15 degrees. The orebody, which is generally strata controlled with a southwesterly plunge and which has the form of thin, narrow, but elongate, en-echelon ore bed s, is contained in grey dolomite pseudo breccia. Its dimensions vary from 50 to 900 feet in width and 8 to 120 feet in thickness, and the over-alllength exceed s 6,000 feet.The surficial deposit of the area is a till comprising a heterogeneous mixture of sand, gravel, cobbles and boulders, with an average depth of 20 feet."

Jan 1, 1980

By Dennis V. Woods, J. Duncan Crone

"In order to determine its capabilities and to aid in the interpretation of fie ld results, a scale model study and field tests were carried out on the Crone borehole pulse electromagnetic (PEM) system. The model results indicate that if a borehole passes in the vicinity of a tabular conductive body, the system will not only detect the presence of the body, but will also return information as to its conductivity-thickness product, size, altitude and position.The effect of variation of these electromagnetic and geometric factors on the shape of the response curve from a borehole PEM survey is displayed by a number of suites of scale-model response curves. These model curves can be used directly as type curves in the interpretation of field results. Field tests of a prototype PEM system provide a check on the scale-model results and also summarize the procedure of interpreting field data using the model type curves.The borehole pulse EM system can be effectively used as a follow-up geophysical instrument for locating and delineating known conductive bodies. It can also be profitably utilized as a primary geophysical exploration tool in areas of deep mineralization below the depth limit of conventional airborne and ground geophysical systems. The probed area of a diamond drill hole in these cases is increased from a 1- inch drill core to a zone extending hundreds of feet from the hole."

Jan 1, 1980

By Gary Watters

PORTS AND ARCTIC CONDITIONS ?Large ice forces ?Standard designs fail in the arctic ?Specialized construction methods for ice PRESENTATION OUTLINE 4 Example Projects ? 2 Alternative Construction Methods ? Advantages & Disadvantages ?Controlling costs

Oct 1, 2010

By R. C. Beard

"The Ontario Ministry of Natural Resources has recently initiated several incentive programs to encourage and facilitate the development of new mines in northwestern Ontario. Some are privatized out to consultants and contractors. The status of three of these programs will be reviewed in this paper.IntroductionOne of the main objectives of the Mineral Resources Group of the Ontario Ministry of Natural Resources is to encourage and assist mineral exploration and the development of new mines in the Province. Programs to accomplish this objective are largely carried out through two Branches in the main office (in Toronto), the Mineral Resources Branch and the Ontario Geological Survey, and also a number of regional field offices scattered across Ontario.The function of the Mineral Resources Branch is to identify and administer effective policies that will ensure maximum benefits to the Province from mineral resource extraction.One of the most important factors in ensuring effective exploration in the Province is the availability of a good geosciences data base from which to work. It is the responsibility of the Ontario Geological Survey to develop and continually update this data base, providing, to both the public and private sector, an inventory and analysis of the geology and mineral deposits of the Province.The main functions of the regional field offices are to provide technical data and advice to exploration companies and prospectors, to encourage and assist exploration, and to provide information and general assistance to producing and developing properties to facilitate resource development and extraction. This is accomplished through the offices of the mineral resource coordinators and resident geologists. In northwestern Ontario, these field offices are located at Thunder Bay, Kenora, Red Lake and Sioux Lookout.To accomplish their objectives, the Ontario Geological Survey and the regional field offices carry out regular, ongoing geoscience and other mineral resource programs, under their base funding."

Jan 1, 1982

By G. Pouskouleli, T. A. Wheat

"The role and benefits of using statistical methodology in the development and optimization of materials and processes is examined. It is shown that considerable benefits accrue from the use of an appropriate design in which a number of factors (process parameters) are varied simultaneously while the system response such as percent recovery, degree of separation, purity, etc. is monitored and ultimately optimized.Compared with the commonly encountered one-factor-at-a time approach, this schema exploits reduced experimentation (thereby requiring reduced resources [staff, time, dollars, etc.]) yet yields quantitative information on the significance of each factor and their combinations on the measured response."

Jan 1, 1992

By J. M. Paxton, R. L. Roscoe, G. A. McCreary, W. W. Muir, T. J. Drown, D. A. Barr, T. W. Law

"This paper reviews the complete cycle of a small mining operation in a remote section of northern British Columbia, including discovery, exploration, development and production. The discovery of high-grade epithermal gold-silver mineralization occurred in 1969 following a regional geochemical reconnaissance program designed to search for porphyry copper mineralization in the Cassiar-Omineca Mountains. Exploration and development from 1971 to 1979 included geological, geochemical and geophysical surveys; trenching, almost 30 000 feet of surface and underground drilling in about 100 holes and cross-cutting, drifting and raising on the principal goldsilver- bearing vein. This led to the delineation of 100000 tons at an estimated grade of0.9 oz gold per ton and 18 oz silver per [on to an average depth of 120 feet below surface. of a 100-ton per day mining operation employing about 50 personnel with all supporting infrastructure transported to the site by a Hercules aircraft. The operation was subsequently supported by its own Twin Otter aircraft with periodic Hercules campaigns supplying major items including fuel.The mining operation included both open-pit and cut-and-fill methods. The milling operation employed conventional cyanide leach process with cyanide destruction initially by alkali chlorination and subsequently by the Inco SOl /Air process.The fly-in operation, initially structured on a 21-day-in and 7-day-out basis was modified to al-t-day-in and Z-day-out basis with no loss in efficiency and with a significant increase in employee satisfaction. The operation, which earned the B.C. Small Mines Safety A ward in two consecutive years in its Ll-month operating history, emphasized safety and process hazard awareness. Wildlife studies in the environmentally sensitive mine area also showed that industry and wildlife can coexist in harmony.Most importantly, the paper compares the feasibility assumptions with actual operating experience."

Jan 1, 1986

By Garth A. Maki, Douglas M. Smith

"The largest Canadian Lamella thickener installation to date, with 13,600 square feet of effective clarification area, is being successfully operated at the Rocanville Division of the Potash Corporation of Saskatchewan. This paper describes the operational principles and design features of the Lamella thickener, the testwork leading to its specification f or the Rocanville phase two expansion project and a review of the performance of the full- size unit which was ultimately installed.IntroductionThickening equipment operating in the Saskatchewan potash industry is generally situated within the main refinery building or a separate insulated an d he a ted structure due to the harsh winter climate and the need to closely control plant brine temperatures to en sure good flotation circuit performance Because these thickeners process large volumes of slurries, conventional basin-type designs tend to be large, ranging up to 46 metres in diameter or more. As part of the general effort to minimize capital costs, the potash industry has begun investigating the use of alternate high capacity, compact thickener designs. In this regard, PCS Rocanville undertook a program in 1978 to evaluate a LamellaTM thickener and one other type of ‘High Rate' thickener as alternatives to a conventional design for the phase two expansion project.This paper describes the operational principles and design features o f the Lamella thickener (manufactured by Axel Johnson lnc.), the testwork leading to the specification of a Lamella for the Rocanville expansion project and are view of the performance of the full size unit (1486 m2 of the effective settling area) which was ultimately installed and is now successfully operating in the Rocanville plant."

Jan 1, 1983

By G. A. Kosick, M. Freberg, L. A. Kuehn

"Highly variable and higher than forecast lead miff feed grades were problems experienced at the Polaris Concentrator. Limited flotation capacity and poor operating flexibility prevented the plant operators from overcoming these difficulties, and resulted in grades and recoveries which were lower than necessary.Two column cells were integrated into the lead circuit in an effort to give the operators the tools they required to achieve the best grades and recoveries possible, regardless of the miff feed grade. Installation of the column cells increased lead concentrate grade from 76% to 79.3% Pb, and increased lead recovery from 9/% to 91.3% Pb.This paper reviews the design, development and operation of column flotation cells in the lead circuit at the Polaris Mine.IntroductionThe Polaris Concentrator was constructed in 1980 on a barge in Trois Rivieres, Quebec, and towed to its pre sent location on Little Cornwallis Island, Northwest Territories, about 1450 km from the North Pole. The plant presently treat s about 2800 mtpd of new feed with average feed grades of 3010 Pb, 13% Zn and 5% Fe. Current production averages 36 000 tonnes of lead concentrate and 220 000 tonnes of zinc concentrate annually.The barge design and min e location dictated that the concentrator .be compact with very little unused floor space. As a result, flexibility was limited in terms of expanding the plant.Mill feed grades were highly variable and above forecast and the lead flotation circuit was found to be under capacity. This caused continued overloads in the lead cleaning circuit, resulting in low concentrate grades and recoveries. It was evident that an increase in lead flotation capacity and flexibility was necessary. The existing floor space did not allow for the installation of additional conventional flotation cells, but one alternative was the installation of column cells."

Jan 1, 1988

By B. Das

"Computers have been used extensively in the mineral industry in exploration, reserves calculation, mining technology, mineral processing, etc. With respect to coal mining, there are also various applications for evaluating rock slope stability of open pits, design of open pits, underground operations, mine ventilation, ground control, data processing and management information, operations control and certain technological applications. Mine ventilation appears to be the field in underground coal mining touched on most; on the other hand, underground coal mining methods evaluation is represented only sparingly.It is therefore essential to review the status of the computer in underground coal mining methods evaluation in order to define its scope for further application. The paper discusses the roles of the mining engineer, programmer, computer operator and analyst as well as that of the computer. The important parameters will be identified and discussed along with their application for different underground coal mining methods, with their individual unit processes. Mainly, longwall face operations have been covered. Although many models have been of academic interest, they can be considered as important steps in a transition stage which will be followed by more practical applications for computers for underground coal mining method evaluations in the future. This calls for a coordinated effort from all concerned."

Jan 1, 1981

By Marcel M. Djivre

The paper will outline historically the different materials used for pouring sockets and illustrate the current trend due to inherent advantages. A section will be devoted to engineering stress analysis showing the criteria necessary for the wires not to slip inside the poured socket material. The Ontario Mining Regulations pertaining to poured sockets will be reviewed with emphasis on the acceptable type of sockets depending on usage. In addition the paper will review the proper socket preparation techniques and explain the destructive testing conducted at the Materials Testing Lab essential for the certification requirements. In conclusion the paper will show the importance of the Certification Program for the safety of Miners working in Ontario, Canada and the World. The paper is also intended to inform the Mine Operators and Consultants that to-date the .Wirelock. sockets have been used safely for hoist ropes of locked coil and non-rotating construction and for the termination of balance ropes, and that further research is required on the construction of a socket approved for rotating type mine hoist ropes.

May 1, 2003

By James D. Bliss, David M. Sutphin

"On the basis of differences derived from genetic, descriptive, and grade-tonnage data, graphite deposits are classified here into three deposit types: disseminated flake, amorphous (microcrystalline), or graphite veins. Descriptive models have been constructed for each of these deposit types, and grade-tonnage models are constructed for disseminated flake and amorphous deposit types. Grade and tonnage data are used also to construct grade-tonnage models that assist in predicting the size and grade of undiscovered graphite deposits. The median tonnage and carbon grade of disseminated flake deposits are 240 000 tonnes and 9% carbon and for amorphous deposits, 130 000 tonnes and 40% carbon. The differences in grade between disseminated flake and amorphous deposit types are statistically significant, whereas the differences in amount of contained carbon are not .IntroductionIndustrial minerals, including mineral construction materials such as sand, gravel, and crushed stone, have historically exceeded metals in global production value. Today, industrial minerals are being used in new and sophisticated ways in response to the late 1980s emerging information- and service-based economies' requirements for less metal and more industrial minerals . Natural graphite is an example of one such mine ral that has been known since ancient times, and is now finding new applications. Graphite was first used as an industrial mineral in Bavaria in 1400 A.D. where it was an important component of crucibles. Traditionally, natural graphite has been used in heavy industries. New applications, such as development of carbon-magnesite bricks a decade ago and the current advancement of alumina/graphite refractories, are increasing its graphite use. Other new uses for natural graphite, such as the use of graphite powder as a thermal blanket for the continuous casting o f steel (Northern Miner, 1987) and the addition of expanded graphite to polyurethane foam where it acts as a flame retardant (Industrial Minerals, 1987), are increasing the demand for this mineral. To meet future demand for graphite and other industrial minerals, knowledge of the characteristics of the deposit types in which they are found is important. A further look at the deposit types for graphite and at construction of descriptive and grade-tonnage models is warranted .The graphite industry recognizes three basic types of graphite , distinguished primarily on the basis of grain size: crystalline flake, lump and chip, and amorphous. These naturally occurring forms of graphite are products of metamorphism and are found in schists of various types, gneisses, and marbles. Temperatures of at [east 400°C are thought to be required for graphite formation (Landis, 1971). Synthetic graphite, also known as artificial or manufactured graphite, is a man-made carbon product and offers higher purity and lower crystallinity than natural graphite. Several authors have written about graphite's unique physical and chemical properties and the uses for individual types of graphite (Krauss et 01., 1988; Graffin, 1983; and Harben and Bate s, 1984)."

Jan 1, 1990

By W. B. Morrey

"In recent years, the major effort in detonator development has been concentrated on ""non-electric"" systems. Existing types all involve some form of explosive reaction to transfer ignition energy from outside the borehole to the pyrotechnic delay element contained within the detonator. These may be based on low-energy detonating cords having grained or plasticized explosive cores, shock tube energy transmission principals and explosive gas ignition systems. Each has properties of internal and external effects not present in electric conductors.The MAGNADET System introduces transformer coupling into electric blasting circuits. Safety features with respect to current leakage, stray currents of AC or DC source, electrostatic energy and radio-frequency radiation are comparable to ""non-electric"" systems, with advantages in simplicity, speed of hook-up and range of application.The transformer device used is a small ferrite ring or toroid which is an integral part of each specialized detonator. The detonator legwires form the secondary side of the transformer winding. The primary side is a single wire loop common to all units within the circuit. Power is supplied from a frequency-tuned portable exploder with unique circuit-sensing features.The MAGNADET System is expected to have particular application to shaft sinking, raising and tunnelling where the protective features as well as speed and efficiency are critical factors. Applications of the 'MAGNA' booster in quarries, open pits and longhole deck charges offer control over vibration problems and elimination of surface noise.IntroductionFor many years, electric detonators and electric blasting systems dominated surface and underground applications where controlled delay times were required. Control over the instant of detonation by blasting machines or power-line switches is the major safety feature.Electrical energy exists in many forms. It may originate from many sources. Electrical energy can be difficult to contain. It may enter or escape through a variety of conductive paths. It may fluctuate, concentrate or dissipate to pose a most elusive potential hazard."

Jan 1, 1982

By P. K. Chatterjee

"The operations of a large-scale open-cut mine are simulated to produce a user-oriented interactive digital model. SIMULA is chosen as the programming language and a sophisticated data base system is designed to consider the complex information network of large mines. The main features of the program are the mine planning and mine evaluation modules. These modules are responsible for the computation of truck-shovel performance and other equipment details in a mine. Stochastic methods are employed to generate event times. The use of a Data Base Management System and the data base provide an efficient method of information storage and retrieval. Truck allocation techniques have been examined in detail and comparisons between random dispatching and conventional methods are made. The model is intended for mine operators and engineers and the program is well structured and very readable. It is hoped that these features will make the model readily acceptable.IntroductionThe Department of Mining and Metallurgical Engineering at the University of Queensland has been conducting research into computer simulation methods in mining since 1972. The research has been mainly applied to actual operations, with both open-cut and underground mining being equally emphasized. The results of the research to date have not only strengthened the methodology of the approach to complex mining problems, but have also increased confidence in the use of modelling and computer simulation technique s in mining.The model described in this paper translates a complex LHD situation into a user-oriented interactive digital model using SIMULA. The present methods of evaluating truck dispatching and trolley assist are tedious and laborious. This model provide s the engineer with readily acceptable means of rapidly assessing the relative merits of these techniques in a large-scale open-pit operation. Poor utilization figures in many current operations (for example, 40% for trucks, 70% for shovels) are of serious concern to mine officials and computer-controlled dynamic truck dispatching systems have been considered by some of these mines to improve equipment utilization ."

Jan 1, 1981

By Friedrich Benthaus

"The natural and man-made realities on either side of the Atlantic are different. Therefore, a large part of the other side' s knowledge and experience cannot be transferred easily. In the following, the author will attempt to describe some of those developments in the German hard coal industry which may be of particular interest to readers on this side of the Atlantic.The area of the Federal Republic is quite small, especially if compared with a country as large as Canada. On a territory the size of the maritime provinces of New Brunswick and Nova Scotia, Germany holds coal reserves roughly corresponding to the total Canadian reserves. More than 20 billion tons of hard coal down to a depth of 1500 m, and more than 30 billion ton s of brown coal of lignite are technically and economically extractable acording to current technology.However, not only are Germany's coal resources more concentrated; the country is also densely populated, and there are dense networks of railroads and highways All components of the so-called infra-structure are available everywhere, be it electricity, any machinery or personnel. Public opinion is likely in favour of an increased utilization of coal.The coal industry is well developed through a long evolution covering centuries. As a consequence, there is an effective and intensive cooperation of numerous bodies and institutions concerned with coal mining, from government agencies including the inspectorate to suppliers, trade union s, producing companies, to jointly operated management and research organizations. In the Federal Republic, hard coal is mined in deep mines only, and lignite in general, only from open-cast pits. There is a complete organizational and geographic separation of hard and brown coal in Germany. Because the Federal Republic holds only insignificant mineral oil and very little natural gas deposits, coal is essentially the only and consequently the most valuable source of energy."

Jan 1, 1984

By K. K. Feng

"Spontaneous combustion has always been a problem in coal mines and is identified mainly with the mining of low-rank coals. The liability of coals to spontaneous heating is only one of the factors in determining whether spontaneous combustion will occur. However, knowledge of the relative oxidizability of the coal is a useful factor to take into consideration when selecting new coal seams and mining methods for future mine development.Four methods (static isothermal, ignitability, adiabatic and dynamic) have been used to compare the relative liability of Canadian coal to spontaneous combustion and to investigate the mechanism of spontaneous combustion of these coals. Among these f our methods, the static isothermal method is considered to be the best indicator of the susceptibility of various coals to spontaneous combustion. Western mountain coal adsorbs more oxygen and has a higher tendency to undergo spontaneous combustion than the Harbour seam coal of Nova Scotia. It has also been observed that a higher methane content in coal will indicate a lower liability to spontaneous heating."

Jan 1, 1985

By Graham Popplewell

"Modular, predesigned diamond recovery plants have been a feature of the diamond mining industry for more than 20 years. The reasons for the selection of such a design route are contrasted with the alternative option of custom-designed route and the relative merits of the two approaches are discussed. The predesigned, modular plant is shown to be particularly applicable for the smaller operation, whether as part of a diverse alluvial mine, an auditing facility for an adjacent large plant, bulk sampling or a remote installation such as is envisaged in the Canadian diamond industry. The characteristics of the predesigned modular plant are described, as well as the inevitable compromises resulting from the concept. IntroductionThis paper explores the application of predesigned modular plants to the diamond mining industry and contrasts their features with the custom-designed installation .A predesigned modular plant is a self-contained unit, or a number of self-contained units, which, when assembled , make up a treatment facility. This is usually small scale in treatment capacity, although multiple modules may be used to increase over-all throughput.A move toward the use of such plants in the diamond mining industry resulted from the relatively unsophisticated nature of the design , the proven nature of pretested , standard plants and the low cost per tonne of capacity and their specific application in remote locations.The recovery of heavy minerals by dense medium separation (DMS) is intrinsically safe and more efficient than the older methods, such as jigs and rotary pans.All diamond recovery plants feature three distinct sections:• feed preparation• gravity separation, and• final recovery."

Jan 1, 1992

By Eric R. Skonberg

"Technology exists today to blind drill a mine shaft 20 feet in diameter, unlined, over 3,000 feet deep. These shafts must be lined in the most economical, safe and expedient manner possible. A new technique of stacking precast concrete cylindrical sections in the unlined shaft has been developed to yield a dry and hydrostatically lined shaft .These sections must withstand an external radial pressure of 3,000 feet of water yet take up as little room as possible in the shaft . Using high-strength concrete, wall thicknesses may be kept at 2 feet. The outside diameter of the sections has been chosen to be 18 feet to allow for some annular space between the liner and shaft wall. The concrete sections are produced in segments 10 feet long weighing 75 tons each. During drilling operations, the concrete sections are cast and cured. After drilling operations are complete, a headframe is situated over the shaft. The unlined shaft remains full of fluid. A special liner running tool is mated with the section in three steel ports at the bottom of the section. The section and running tool are lowered into the hole, and the tool is disconnected and returned to the surface. Subsequent sections are lowered and stacked using the same operation. Grout is placed behind the liner to result in a dry shaft."

Jan 1, 1981

By T. Alan O'Hara

"The decision to invest capital in developing a mine and constructing a mineral processing plant and services is usually made after a feasibility study shows 'that the estimated future cash flow from mine operations will yield an adequate return on the estimated capital expenditures.The actual return on investment may differ substantially from that estimated in the feasibility study, because of the probabilities of errors in estimating capital costs, ore reserves, operating costs, mineral revenue and operating productivity. This paper outlines the R.S.S. (root sum of squares) risk analysis procedure of computing the overall probability of the actual project D.C.F. (rate of discounted cash flow), differing from that estimated in the feasibility study.Variation in Project D.C.F.It is assumed that a feasibility study of the project has been completed which has defined the estimated values for all the project parameters, such as ore reserve tons and grade, capital cost, concentrate recovery, metal revenue, daily milling capacity and operating costs.The financial analysis of the mining project will have determined that the cumulative cash flow will yield an expected D.C.F. on the capital cost if all project parameters attain the estimated values. If, however, the actual value of any parameter varies from that estimated, the actual project D.C.F. will vary from the estimated D.C.F. Risk analysis methods attempt to determine the overall effect of probable variations in the estimated values of all project parameters on the D.C.F. of the mining project. This overall effect is expressed as a probability profile, which shows the likelihood of actual D.C.F. values greater or less than that estimated.Thus, a completed risk analysis of a mine project, with an expected D.C.F. of 15.51%, would display the characteristics shown in the preceding diagram."

Jan 1, 1982