Search Documents

By Karl J. C. Harries

"4.1. INTRODUCTIONThis chapter, although divided into four parts, deals with only two principal topics. The first briefly describes and discusses some common types of property interests and considerations relating to them and the second deals with entering upon privately owned lands and obtaining the consent to do so.It should be noted that the terms “mining rights” and “mineral rights” are used interchangeably. As so used, they include the right to exploit the minerals and dispose of them for the benefit of the owner/lessee. This is relatively common in common law jurisdictions. In some jurisdictions, the two terms have distinct meanings, with “mining rights” referring to the right to work or exploit the minerals and “mineral rights” referring to the minerals themselves.Finally, it must be mentioned that the comments in the Introduction and §§ 4.2., 4.3. and 4.4. are based primarily upon Ontario law and Ontario’s mining and real property systems of registration. They have been included for illustrative purposes.4.2. LICENCES, CLAIMS, AND LEASESIn most jurisdictions, there are several basic types of interests that can be obtained from the state for mining purposes and that are of interest to the explorationist, as opposed to the operator. Different jurisdictions will have variations of these and possibly some extra ones that will address special purposes or local concerns. In virtually every jurisdiction, privately owned property rights are obtained through negotiation between owner and acquiror.Exploration or prospecting licence. This licence grants to the holder the right to prospect over a large tract of land and the exclusive right to acquire mining claims within that tract for the term of the licence. Such licences are usually negotiated documents requiring a minimum expenditure during the first year (often secured by a deposit or surety bond) and minimum annual expenditures thereafter to continue the licence in force up to its full term. The term will rarely exceed four years. The number of claims permitted to be staked will be limited in some way, possibly as to a maximum aggregate area or a maximum number of claims per annum. It is normal for the holder to have to drop part of the licensed area each year, so that the area shrinks annually, although exploration expenditure requirements will usually increase.These types of licences are usually used by governments to encourage exploration of otherwise unattractive or remote areas, such as the far northern parts of some of Canada’s provinces. They do not grant any real property interest in the area for which they are issued, and they will be subject to any claims or property rights that exist in the area. They are contracts with the state that grant certain exclusive rights in return for commitments to carry out work. They may or may not be specifically authorized by statute."

Jan 1, 2003

By Henry Stoch

It?s a green, green world ? Public concern about the impact of human activities on the environment and the roles that businesses play in that impact is rising. What?s happened in the last few months? ? Recent news: ? British Columbia announces carbon tax in 2008 budget ? Federal Court ruling stalls oil sands approvals due to a lack of consideration of GHG implications ? US Energy Independence and Security Act could limit government procurement of oil sands-derived fuels ? Western Climate Initiative (WCI) suggests a ?first seller? approach for regulating generators outside WCI jurisdictions ? Implications ? A cost for carbon has arrived ? The lack of a GHG strategy can have a material impact on your business ? Regulations in other jurisdictions could affect your organization

May 1, 2008

By Raymond J. Pichette

"Aeromagnetic data can be useful in helping to delineate structures and rock types in gold exploration. Magnetic anomalies associated with Archean volcanic belts in northeastern Ontario can be quickly and effectively analyzed in profile form with the use of model curves. The model curves help to locate contacts between strata. They also help to estimate the magnetite content of the rocks and their depth beneath overburden.An aeromagnetic map of part of Catharine Township, Ontario has been analyzed with the aid of model curves. Several magnetic rock types, potential fault zones and areas of relatively thick overburden were delineated.IntroductionIn any exploration program, a good understanding of the stratigraphy, rock types and structure enhances the possibility of success. For example, environments which host gold deposits in the Abitibi Volcanic Belt may be characterized as follows (Jensen, 1980; Pyke, 1980):(I) They have major faults, especially as tectonic boundaries between volcanic piles which include mafic and ultramafic rocks and clastic sedimentary rocks or gneisses.(2) They have subvolcanic felsic intrusions.(3) They have extensive carbonitization, with or without carbonate and sulphide-facies iron formation.In all cases, delineation of structure and rock type should be a major objective in exploration. The analysis of magnetic data can be a useful tool in this task. This paper is presented with the purpose of describing the application of the magnetic method to gold exploration in Archean volcanic terrains.Magnetic AnalysisTotal-intensity magnetic contour maps can be used to discriminate rock units according to differences in magnetization. However, because of smoothing of texture resulting from the compilation procedure and the fact that survey lines are widely spaced, contours should not be directly used for quantitative analysis. A much more definitive means of magnetic analysis is provided by the use of the original profile or chart recordings. Model curves provide a basis for analyzing these profiles both accurately and rapidly."

Jan 1, 1982

By Patrik Ericsson

During the 90?s Atlas Copco and LKAB developed a pioneering fully automatic long hole production drilling system based on the Atlas Copco Simba W469 drill rigs. These drill rigs have since then drilled about 8.000.000 drill meters at the LKAB Kiruna and Malmberget mines. In 2005 LKAB ordered three new Atlas Copco Simba W6 C, to complement Simba W469s still in operation. These new Simbas are based on the latest generation computerized drilling technology have proven to meet the expectations of LKAB and now form a base for future automation in Kiruna and Malmberget mines. This paper will present experiences from the introduction of Simba W6 C in LKAB Kiruna and Malmberget mines. The paper will also elaborate on the latest developments in remote access and remote control technology making it a common automation option available for all computerized Atlas Copco drill rigs.

May 1, 2007

By The Staff

THE gold mining industry in Canada is today the most important stabilizing influence in the country. This factor was brought out particularly during the 'depression' years, when steady employment was given to men in that industry and the monies spent in supplies and power in turn benefited the country to a great extent. At the same time, a commodity was produced which was saleable in any market of the world, thus maintaining Canada's credit in foreign markets and keeping her trade balances equalized. We have a vast area known as the Precambrian Shield. The agricultural possibilities of this area are practically negligible and it will depend entirely upon the mineral and forest resources to make this district an economic factor in the life of Canada. To date, from the mineral point of view, we have been highly successful. There are, however, still vast areas to be explored. It is tedious and laborious work, entailing great individual hard-ships and the expenditure of much energy and money. During my thirty years' experience in the search for, and operating of, gold mines, I have come to the conclusion that although individuals may give all their time, energy, and money, Governmental assistance is absolutely necessary in the development of hydro-electric power sites and roads. The Governments, to date, have given splendid co-operation along these lines, but in order that this great industry may go ahead they should continue their good work and, if possible, give greater relief from taxation to mines situated at a considerable distance from the railway.

Jan 1, 1938

Leadership "Organizing a group of people to achieve a common goal" Paradigms ? Rush to produce or cut costs. ? The most important thing after safety is production. ? We?ll take care of ??this?? once in production. ? I know what to do, 30 years of experience in mining. ? I want a 100% reliable operation.

Aug 1, 2013

By W. Pawlak, J. Janiak, C. Rodkiewicz, B. Ignasiak

"There is a general consensus that, in order to widen the utilization of Western Canadian coals, a major effort must be devoted to their transportation, utilization of fines, beneficiation and mining techniques. It is postulated that the concept studied extensively over the last four years at Alberta Research Council (ARC), and based on a combination of hydraulic mining, selective agglomeration with bitumen and/ or heavy oil, pipeline transportation and oil recovery from agglomerates, offers a particularly attractive solution to the problems associated with extraction, beneficiation, transportation and utilization of Western bituminous and subbituminous coals. Results of preliminary experimental work on the feasibility of pipeline agglomeration of metallurgical coal and hydraulic transportation of agglomerates are presented and discussed in the context of conventional agglomeration techniques in stirred tanks. IntroductionAlberta is endowed with enormous reserves of low-sulphur coals which could attract considerable attention of potential customers, but the remote location of this province handicaps its competitiveness on the world market. It is known that Alberta's Cretaceous, particularly metallurgical, coals differ significantly from their Carboniferous counterparts; current R&D work on indigenous coals should continue to expand in order to encourage overseas client s to use these coals more extensively.There is a genera l consensus that, in order to widen the utilization of Western coals, a major effort must be devoted to their transportation, utilization of fines, beneficiation and mining techniques."

Jan 1, 1986

By C. H. Hopper

DIAMOND drills have played an important part in the development of mines for many years. Recently. they have also entered the production field arid the use of diamond drills m the primary breaking of ores has become a big branch of the industry. The writer has estimated roughly that the total diamond drilling in Canada during 1942 was 5,625,000 feet, of which 2,250,000 feet, or 40 per cent, was for blast-holes. This accounts for 6,750,000 tons of ore broken, using the conservative factor of 3 tons per foot of hole. Many consider that the use of diamond drills for blast-holes is the most important advance in mine practice of the past decade, and the industry owes a great deal to the staff of Noranda Mines, Limited, for the pioneering they have done in the development of long-hole mining methods and for publishing their results. A great many mines have followed Noranda's lead. At the Waite-Amulet, Aldermac, Flin Flon, Canadian Malartic, Hoyle, and Matachewan Consolidated mines, most of the ore is broken by long-hole blasting. While the mines were developing new methods, the diamond-drill industry was developing mechanically-set bits and better machines. Through the effective use o smaller, cheaper diamonds, as well as more efficient setting, bit costs per foot are only one-half what they were ten years ago. Few people realize that a diamond bit is relatively inexpensive. The common EXT coring bit, for example, contains some 200 small diamonds, weighing altogether about 2.70 carats which, at $3.40 per carat, cost $9.20. After use, the equivalent of about 100 of these diamonds may be recovered. Therefore the true cost of the bit is only $7.00, made up of $4.60, the cost of the diamonds lost, $2.00 for setting, and $0.40 tax. The trend in machines has been toward specialization for the different classes of rock in blast-hole work. Light, high-speed machines have been developed for soft ores and higher powered machines for hard ores.

Jan 1, 1943

By Leonard Kellogg

Introduction The Mine Manager or Superintendent is a man faced with a difficult problem. He must direct the activities of his mine in such a manner that, over a period of time, the greatest possible profit will be realized. In this respect, a mine is no different from any other business organized for profit. What makes the mine manager's task so difficult then? The profit of a mine is determined by -among other things -the grade of ore, the market price of the metal or metals produced, and the cost to operate the mine. The mine manager cannot do much about the first two of these, but he has considerable control over the operating cost. This cost will depend in large measure on the nature of the programme on which he plans to operate his mine. This operating plan may be broad or specific, on a long-range basis or on a month to month basis. The development of the plan, however, is made very difficult by the existence of so many factors which must be considered. These may be (1) factors requiring decisions based on the best judgment and interpretation of engineering and geological information available, or (2) items which must be considered but which are largely non-controllable. To be more specific, examples of such items would be: (1).-(a) The amount and type of development work to be done in relation to amount of ore to be mined. (b) Mining methods to be followed and type of equipment to be used. © Amount of exploration diamond drilling to be done if the orebody is not clearly defined. (2).-(a) Rock type and degree of hardness. (b) Width, depth, and pitch of veins. © Amount of work requiring timbering. (d) Faults encountered. (e) Water and gas conditions met with.

Jan 1, 1952

By Paul Harvey

Following initial discovery in 1991, BHP Billiton Diamonds Inc opened Canada?s first diamond mine, the Ekati Diamond Mine TM (Ekati) in the Northwest Territories on October 14th, 1998. Four short years later on November 29th, 2002, saw the opening of North America?s first underground diamond mine - the Koala North mine. Nestled between the original Panda open pit and the new Koala pit which is in the early stages of production, Koala North represents the only underground kimberlite mining venture in arctic conditions outside the new underground mines being developed by ALROSA in the Yakutsk region of eastern Russia. Extensive underground kimberlite mining has been practiced in the Republic of South Africa for much of the 20th century and continues today. Underground mining represents a key component of the long term business plan for the Ekati. As various open pits reach their economic limit, continued recovery of high value ore at depth is dependent upon the ability to productively mine the kimberlite pipes by underground methods. As a function of its location, size, and value, the Koala North pipe is ideally positioned to host the first underground mine at Ekati . In addition to being a production source for the operation, Koala North is designed as a learning mine, from which to gain valuable experience in preparation for the potential mining of other larger, higher value pipes by underground methods in the future. Fortuitously Koala North was available for development so the learnings could be integrated into the Panda mine design prior to completion of the Panda pit. Establishing our first underground diamond mine, and applying the open benching mining method in arctic conditions brings a unique combination of mining challenges together in a harsh climate and remote environment. This paper examines the design and establishment of the Koala North mine. Discussion includes experiences gained from the first year of development, production start-up, and provides a brief overview of our potential underground future at Ekati .

May 1, 2003

By H. Salomon-de-Friedberg

The amount of pyrite in copper concentrates fed to the CESL Process can vary appreciably. The fraction of pyrite that oxidizes influences both capital and operating costs and is therefore an important variable. The present paper explores operating conditions that influence the extent of pyrite oxidation and the probable overall reaction chemistry under CESL conditions.

Jan 1, 2014

By Benjamin A. Allou

La seule production de columbo-tantalite réalisée en Côte d?Ivoire est effectuée dans les éluvions et alluvions du gisement d?Issia, localisé au Centre- Ouest de la Côte d?Ivoire. Même si un lien direct avec les roches granitiques est suspecté, aucune attention particulière n?a été accordée à l?étude de la minéralisation primaire en relation avec l?évolution des granites et des pegmatites associées. Ces granites, qui sont en intrusion dans les roches sédimentaires du Protérozoïque inférieur, comprennent : le granite orienté à deux micas (Lobo), le granite orienté à muscovite dominante (Bitapia) et le granite porphyroïde non orienté à muscovite dominante (Issia). Les résultats de cette étude indiquent que les pegmatites à Nb-Ta-Be-Li sont liées au granite de type Issia. Les observations de terrain et les analyses sur roche totale des granites montrent que: (1) les trois principaux granites de la région sont de type- S et peralumineux dans leur composition, (2) ils ont été formés pendant la période tardi- à post-Éburnéenne, (3) le granite d?Issia fut le dernier à se mettre en place. Les pegmatites liées au granite d?Issia ont été classées en quatre types : Apegmatites stériles; B- pegmatites à Be; C- pegmatites zonées à Nb-Ta-Be; et Dpegmatites zonées à Be-Nb-Ta-Li. Les pegmatites zonées comprennent les zones suivantes: I- zone à aplite; II- zone graphique; III- zone à albite, microcline, béryl et columbo-tantalite; IV - zone à microcline massive; V- zone à quartz. Ces pegmatites présentent une zone d?altération métasomatique externe. La minéralisation de Ta, Nb et Be est liées à la zone III des pegmatites de types C et D, et celle de Li est associée aux greisens qui peuvent être observés n?importe où dans les pegmatites de type D. Les données de terrain et de laboratoire indiquent que le granite d?Issia est la roche parentale des pegmatites à éléments rares de la région. Les pegmatites minéralisées sont distribuées seulement autour du granite d?Issia et les patrons des terres rares des granites et ceux des pegmatites à éléments rares sont très similaires. Les analyses de la composition totale montrent un lien génétique entre le granite d?Issia et les pegmatites à éléments rares. Il est suggéré que les pegmatites ont été formées durant le transport et la cristallisation fractionnée du magma.

May 1, 2003

By T. Y. Chong, J. A. Folinsbee, M. Fullam

PJV Dome Mine has used some form of gravity concentration since start of milling operation in 1909 to recover free milling gold. Amalgamation and conventional jigs were first used and were replaced with the Knelson Concentrators in 1993. The Knelson concentrates produced were upgraded on a conventional shaking table prior to smelting and refining into gold bullion. In May 2002, a comprehensive review of the latest gravity recovery technology led to a piloting campaign aimed at further improving gravity recovery. The Knelson concentrates, subjected to intensive cyanide leaching in an Acacia pilot plant, were found to be amenable to intensive cyanide leaching with over 98% of the gold being dissolved within 24 hours. An Acacia Intensive Leach Reactor was successfully installed and commissioned in December 2002, to replace the shaking table. his paper describes pilot scale testing, installation, commissioning and optimization of the Acacia Intensive Leach Reactor. Also, the economic impacts on down stream processes are highlighted.

Jan 1, 2005

By Janis A. Shandro

The mining sector is a major economic driver for Canadian, and British Columbian communities. In parallel strong commitments have been made by industry to the well-being and sustainability of associated communities. However, these dimensions are the least understood. Especially lacking are focused regional investigations that compare the well-being and sustainability of communities dependent on different resources sectors. It is hypothesized that this type of comparative analysis will help to foster a greater understanding of what makes a resource or mining community healthy and sustainable. This paper describes research that examined community-level indicators associated with well-being (e.g. education, income and employment) and sustainability (e.g. economic diversity). The indicators were derived from Canadian Census data for 31 British Columbia resource-based communities (with a focus on mining) during a period of time (1991 to 2001) when resource sectors experienced an economic downturn. Our findings identify that during this decade, mining communities differed significantly from other resource-based communities, and comparative analysis of census derived indictors illuminate challenges that mining communities in British Columbia face with respect to wellbeing and sustainability (such as economic diversity, unemployment, and population loss). To contribute to the mining sector?s efforts towards meeting their commitments to communities, this paper concludes by proposing strategic opportunities aimed at the enhancement of mining community sustainability for policy-makers, communities, and the mining industry to consider.

May 1, 2011

By J. Shanks

A S far back as 1925, Brazeau Collieries, Limited, became interested in .briquetting. This was brought about by complaints from their principal customer that stack losses, due to a high percentage of fine coal in their mine run, were excessive. The Company considered oil spraying of the fines. This, after some experiments and tests had been made, was ruled out as uneconomical and impracticable. When sufficient oil to be effective was put into the fines, it caused the coal in the tender of stoker-fired engines t0 arch over the screw feeder. The Company ultimately placed their problem in the hands of the Re-search Department of the University of Alberta. Experimental work was carried on by this department over a period of more than a year. The results obtained and the experience gained in this research work were conveyed to Brazeau Collieries in a report dated October 31st, 1929, and in a supplementary report dated February 2nd, 1935. Most of the results obtained in experimenting with Brazeau coal are embodied in a brochure, reprinted from the proceedings of the Second International Conference on Bituminous Coal, Vol. 19-24-28, entitled Principles in the Briquetting of Coking and Non-Coking Bituminous Coals, by E. Stansfield and W. A. Lang. All who are interested in briquetting should read this brochure. In the writer's opinion, iris the most important treatise on the subject printed in recent years. The results given in the paper are, of course, those obtained in laboratory investigation. It was pointed out to the writer that it would be most interesting to have such results correlated with those obtained in commercial practice. In this short paper, an attempt is made to do so.

Jan 1, 1942

By P. H. Reynolds, S. Liaghat, A. Zarasvandi

"Darreh-Zerreshk and Ali-Abad are two relatively small porphyry copper-type deposits in Yazd Province in central Iran. They are located within the central Iranian volcano-plutonic belt, formed above the collisional convergent margin of the Iranian lithospheric plate from the late Eocene to the Miocene. This paper discusses the geochemical characteristics of the igneous rocks, and 40Ar/39Ar geochronology of plutons and alteration phases associated with the Darreh-Zerreshk and Ali-Abad deposits. The deposits are spatially associated with igneous complexes that consist of older and barren granites intruded by intermediate-composition granitoids, which are the carriers of Cu mineralization. The granites have relatively high content of Nb, Y, and K, a prominent negative Eu anomaly, and were probably derived from melting of, or contamination of mantle-derived magmas by, continental crust. Porphyritic diorites, quartz monzodiorites, and granodiorites show enrichment in light rare earth and large-ion lithophile elements, depletion in middle rare earth elements, and have no negative Eu anomaly. These intermediate-composition granitoids were derived from melting of the upper mantle or lower crust, and their differentiation was controlled partly by fractionation of hornblende. A pilot K/Ar whole-rock dating study suggests that the pre-ore granites were emplaced in the Oligocene. Dating by the 40Ar/39Ar method of nine samples of secondary biotite and sericitized rocks from drillcore within the mineralized and altered zones in both deposits yielded a well-defined age of ca. 16 Ma. This date is interpreted to be the time of hydrothermal alteration and of porphyry copper type mineralization in this part of Iran."

Jan 1, 2007

By K. Lundholm, M. Andersson, L. Nevatalo, Å. Holmström, L. Hedström

"Several copper deposits have the arsenic bearing minerals enargite (Cu3AsS4) and tennantite (Cu12As4S12). Since this mineral contain both arsenic and copper, it is not possible to remove the arsenic by selective flotation. Partial roasting is a method to clean the concentrate from arsenic and thereby produce a suitable raw material for the copper smelter. Also mercury is commonly found in copper bearing minerals. In the partial roasting process both arsenic and mercury are volatilized, while part of the sulphur is used as energy during the roasting. This gives a calcine suitable as feed to a smelter, much like an ordinary copper concentrate. A typical analysis of calcine would be: S content 18–22%, As content below 0.3%, Cu content – not affected, grain size – not affected. However, if the concentrate contains mercury, the mercury will be volatilized during the roasting process. This will lead to very high mercury contents in the subsequent process of sulphuric acid, unless the SO2-rich process gas is pre-treated by the Boliden/Norzink process that recovers mercury as calomel, Hg2Cl2. The volatilized arsenic in the gas phase can be recovered either by dry or wet methods. However, one problem is that arsenic also contaminates the fine grained calcine dust that is captured downstream in the gas cleaning system. The calcine dust contains valuable metals such as copper, gold and silver that needs to be separated from the arsenic. The ultimate aim is to stabilize the recovered arsenic as a compound with minimum impact on the environment and recover the valuable metals. By using wet recovery methods it is possible to selectively precipitate copper, gold and silver as sulphides while arsenic is kept dissolved in the liquid. The precipitated metal sulphides can be mixed with the calcine and sent to the copper smelter. The dissolved arsenic is sent to effluent treatment and is further treated in Outotec ferric arsenate precipitation process, where arsenic is precipitated as the stable compound basic ferric arsenate, formula FeAsO4·xFe(OH)3. All concentrates containing arsenic are unique and the process design of a roaster plant must be based on relevant process data. The process data is collected during tests in lab scale and pilot scale, where the influence of critical process parameters on the quality of calcine is studied. The ability to run tests both in lab scale and pilot scale is crucial to the development of the correct roasting process. Outotec is well equipped for this."

Jan 1, 2014

By N. H. Grace

"IntroductionDURING the past half century, the economy of Western Canada was largely centred on agriculture. However, the impact of World War II has led to an acceleration in the development of a variety of natural resources so that, today, Western Canada is experiencing great industrial development. Consequently, the availability •of low-cost energy assumes prime importance. In the final analysis, industrial growth and expansion are intimately linked to the energy resources.Coal ReservesHas Western Canada adequate coal reserves to meet the present accelerating demand for power in the days that lie ahead? This question must be answered before detailed consideration can be given to the probable patterns •by which various energy sources in Western Canada may be expected to meet the expanding demand. Figure 1 indicates the extent and distribution of the Canadian coal reserves, the data having been prepared by Dr. B. R. MacKay for the Royal Commission on Coal in 1946 (1). The amount of readily recoverable coal is listed as one-half the quantities shown on the chart. It is interesting-to note that upwards of 90 per cent •of the Canadian coal reserves .are located in the three most westerly Canadian provinces. It has been estimated that the coal reserves, at the present rate of mining, would be adequate for about 3,000 years. Consequently, it may be concluded that the coal •reserves in Western Canada •are indeed adequate to meet tremendous energy demands for many centuries. When the oil and natural gas have been exhausted, the great coal reserves will still be available."

Jan 1, 1953

By M. W. Airth

ON THE 6TH JULY in the year 1953 an announcement was made to the public that touched off one of the greatest staking rushes in the history of mining in Canada and resulted, in tl1e space of a few short years, in the development of the greatest reserves of uranium-bearing ore in the world. It was ?On this date that the famous "Blind River back-door staking bee" was completed with the acquisition of some 2,000 claims by the Preston East Do me-Technical Mine Consultant teams under the direction of Mr. Franc Joubin and Mr. Robert C. Hart. That story has been told from coast to Coast and is too well known now to re-quire elaboration. Suffice to say that, in the short elapsed time of less tl1an five years from that momentous summer of 1953, three of the Algoma mines are in full production, three more are rapidly nearing full production, five more 1are approaching the production stage, a new hard-surfaced highway, 108, has been built to serve the area, and a brand new, completely planned city, Elliot Lake, is being built to provide the amenities of living to the 22,000 people already in the area.

Jan 1, 1958

By Lawrence Devon Smith

"The concept of risk is well established in the mining industry. It is acknowledged when estimates of reserves are expressed as proven or probable, when mining and metallurgical recoveries are applied to the ore, and when contingencies are added to costs. However, it is difficult to provide a quantitative assessment of risk. The significant sources of risk in a mineral project and how these are addressed in project evaluations are discussed. The discount rate is examined as a fundamental means of reflecting risk in discounted cash flow evaluations. Current industry practice is discussed, and a methodology for the analysis of risk levels is proposed that assesses the constituent components of the discount rate: real interest, mineral project risks, and country risk.IntroductionThis paper examines the components of the discounted cash flow discount rate and proposes a method of estimating project-specific discount rates. The motivation for this work comes from experience of project evaluations in which owners and purchasers had agreed on virtually every aspect of the evaluation except how much the project was worth. Agreement was reached on reserves, grad~, recovery, capital costs, operating costs, taxes, and, by combining these components, even on the fmal cash flow values. The only difference in opinion concerned the discount rate to be used in the calculation of the net present value. Depending on the life of the project, such differences of opinion can cause a variation of more than 50% in the value placed on a project! This is illustrated in Figure 1."

Jan 1, 2003