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By G. B. Harris

It has long been appreciated that chloride chemistry has a number of advantages over the more traditional sulphate route for both extracting and separating metals. Modern materials of construction, coupled with the development of a more cost-effective and efficient hydrochloric acid regeneration technology mean that chloride-based processes are now more competitive and attractive. Such processing routes are able to recover more of the contained metal values in a feed, including iron in a benign and/or marketable form, and particularly the so-called rare and rare-earth elements which are increasing in demand in our electronic age. These factors, therefore, add appreciably both to the overall economics of a project, but also offer a much more sustainable approach to our dwindling natural resources. Additionally, chloride-based flowsheets can be much more environmentally-friendly, offering practical alternatives to two of the biggest headaches faced by the industry, namely cyanide usage and the generation of red muds. This paper presents a brief theoretical background, focusing on the latest developments of ferrous iron oxidation and the low-temperature, selective hydrochloric acid regeneration process, which is the key unit operation for any chloride flowsheet, and discusses in general the advantages of the chloride approach. Several recently-developed flowsheets, which have been tested at the miniplant level, are presented for gold, base metals, titaniferous magnetites and lead-silver ores wherein the advantages of considering a chloride approach are highlighted.

Jan 1, 2014

By J. G. Cullain

Inco Limited is an integrated mining, smelting, refining and manufacturing company with operations located worldwide. The Ontario Division operations consist of 13 mines and 10 processing facilities located in Sudbury, Port Colborne and Shebandowan. The scope of our utilization of energy in the Ontario Division in 1976 included in excess of 2.2 billion kilowatt hours of electric power, 12 billion cubic feet of natural gas, 60 million Imperial gallons of residual oil and smaller quantities of other fuels. In addition to the primary energy consumption, waste-heat energy is recovered in various operations throughout the Division, thereby reducing our primary energy requirements. Total expenditures for primary energy alone in 1976 exceeded 60 million dollars. Energy management studies were initiated by Inco's Utilities Department in late 1972, and resulted initially in a program of electric power cost reduction. This program produced significant results by improving the use of the water available for our hydraulic generation facilities and by a comprehensive peak reduction program. Our experience showed that a program of peak power control creates an awareness of both peak and energy costs, and thereby encourages a general reduction in the electric energy consumption as well as lowering the peak demand. Energy management is a continuing program at Inco and, recently, a formal energy management policy and program was instituted. Energy management committees were formed in each plant or mine area to identify the major areas for energy; consumption, thereby isolating areas with large potential energy losses, and determining immediate action which will improve the energy efficiency or reduce the energy waste within their respective areas. A decentralized program with good cross-communication between all committees was felt to be the best method of providing an on-going effective energy management program. In the future, the projections of dwindling fossil-fuel supplies in Canada and the resultant spiralling energy costs will further emphasize the need of sound energy management practices for all Canadian industry.

Jan 1, 1977

By D. H. Pulling

Statistics for copper consumption from various sources show that the importance of production from secondary sources is increasing. This is of particular significance in countries such as the U.K ., which are totally dependent on secondary material for the supply of home-produced copper . A brief survey of the U.K . industry has shown that, in the past, relatively high profit margins have not encouraged high cap ital investment and development of more sophisticated operating techniques, but set against a background of rapidly escalating operating and energy costs , together with an ever-increasing demand for copper , it is anticipated that the industry will see great changes in the near future. With this in mind, an experimental furnace for continuous smelting of copper-bearing scrap has been developed at the University of Birmingham. This furnace has been designed to combine the conventional operations of blast furnace or reverberatory smelting, usually followed by converting, in one unit, and incorporates many of the features of the WORGRA and Noranda processes for continuous primary smelting . It consists of a long, sloping channel, constructed of chrome-magnesite refractory, which: is churned near the top. Smelting is effected lower down the channel, where iron, etc., in the scrap is oxidized and slagged off with silica flux. Provision is made for oil injection to increase oxidation rates. Metal can flow from the bottom of the channel, and slag from the top, so that a counter-current flow is achieved. The approximate molten capacity is 25 kg. Various scrap charges, both synthetically made and as supplied from various industrial smelters, have been successfully smelted. Metal of 83 -95 % Cu has been produced, depending on the original charge composition and the degree of air injection, although air injection was also found to considerably increase the copper loss to slag. Recoveries of other valuable non-ferrous metals in the charge were good.

Jan 1, 1977

By A. Grimod

The European Guideline ETAG 027 - 2008 (?Guideline for European Technical Approval of Falling Rock Protection Kits?) defines the procedures to test rock fall barriers. Nowadays, this guideline is essentially the only test and construction framework utilized by manufacturers and it is also starting to enter in the mentality of designer who can clearly specify the performances of rockfall barriers. ETAG 27 (and the related European Technical Approval and the CE marking) represents a milestone for the rockfall barrier market, because it gives the possibility to compare the performances of different fences and it ensures the quality of the certified product. For these reasons ETAG 27 presently constitutes the base for tenders all around the world. Although rockfall barriers are in common use, designers and consultants do not have a clear overview of the real performances and the technological limits of these structures. The first problem can be solved using ETAG 27 criteria, which allow designing rockfall barriers at ultimate and serviceability limit state. Even though ETAG 27 uses crash tests performed with the Service Energy Level (SEL) and Maximum Energy Level (MEL), design with these concepts is not obvious or in common acceptance. Some preliminary questions must be solved. When can these energy levels be correctly applied? In the case of rockfall simulations, what probabilistic approach must be used for the evaluation of the barrier? Unfortunately ETAG 27 does not give any information or tests relating to the technological limits of the fences. Therefore some important questions arise. How do the site specific aspects of installation affect the barrier performance? What is the behaviour of the barriers under extreme conditions? And finally, the main question lies in the background: what is the functional reliability of ETAG 27? All of the above questions require comprehensive answers, which is consistent with the experience of designers, installers and producers. Officine Maccaferri S.p.A., with its 130 year experience in the field of rockfall protection, collected a large number of case histories with barriers impacted by single or multiple blocks, debris flows, and snow avalanches. Throughout these case histories and in accordance with a recent Italian standard code, it has been possible to implement a reasonable design approach that considers the efficiency of the barrier, the uncertainties of the input data, and the fore

Aug 1, 2013

By Jim Sadowski, Steve Stewart, Bob McMurdy, Martin Nevens

"Mohawk Garnet has been operating a small pilot plant near Sudbury, Ontario for several years attempting to produce commercially viable garnet. The challenges of operating a pilot scale mining, processing, and product handling operation as a full time plant have led Mohawk Garnet to seek a better way. In co-operation with Mohawk Garnet, Outotec (USA) Inc. has taken on the technical and design challenges of increasing garnet product from twenty tonnes per day to two hundred tonnes per day.Outotec performed a comprehensive test and flowsheet development program applying Outotec’s density separators, spirals, flotation, and other technologies to design a successful process for the separation and recovery of the valuable garnet for Mohawk.This paper explores the test program, the process flowsheet development work, plant design and preliminary engineering of a new garnet processing. The various technical challenges, process technologies involved, and design concepts will be discussed.INTRODUCTIONMohawk garnet has been operating a small-scale garnet mine and process plant in Wahnapitae, Ontario near Sudbury.The current operation was intended to be a pilot plant and so only produces 20-25 tonnes of garnet concentrate per day. The garnet is bagged and sold for use as abrasive. The process is inefficient with low yields, poor material handling and very high cost per tonne. Mohawk garnet approached Outotec to help them improve their garnet process and transform themselves into a larger scale and more efficient operation."

Jan 1, 2010

By P. Lind, A. Gagnon

"Goldcorp has embarked upon an ambitious, industry-leading, multi-year water use reduction effort. This is a proactive, voluntary effort that reflects our commitment to truly sustainable mining. This effort will focus on increasing water re-use and recycling, and reducing water inputs ultimately towards zero. All of our operating mines are expected to contribute to this effort and are currently in the process of developing plans to meet short and long term objectives. One of the largest needle movers to increase water re-use and recycling is in the area of tailings management. Within five to ten years at Goldcorp, it is envisioned that the need for wet tailings dams will be eliminated and that all new tailings facilities will consist of only filtered or dewatered tailings. Filtered tailings is developing into a mature technology with wide application in mine waste management. This paper describes a conceptual level evaluation on the transition from a slurry to a filtered tailings operation at the Cerro Negro mine in southern Argentina. Key benefits and challenges are highlighted.INTRODUCTION Goldcorp’s Cerro Negro operation is located in the Santa Cruz province in the Patagonian region of Argentina. Cerro Negro has been in operation since 2014 and commercial production was achieved on January 1, 2015. The processing capacity of the plant is 4,000 tonnes of ore per day and in 2016 produced 363,000 ounces of gold and 3.1 million ounces of silver (Goldcorp Inc., 2017). As the mine is located in a semi-arid area, it is important to evaluate technologies that could reduce freshwater consumption and maximize water re-use and recycle rates. The current tailings operation at Cerro Negro incorporates pumping of tailings slurry into a conventionally lined Tailings Storage Facility (TSF). Water is reclaimed from the tailings supernatant pond to the process plant via pumps, however, water losses occur due to evaporation and solution retention within the slurry tailings voids. Converting to a filtered or dewatered tailings operation would allow for increased water recovery prior to tailings disposal, and decreased water losses from evaporation and from retention in the tailings solids void space. This paper describes a conceptual level evaluation on the transition to filtered or dewatered tailings with the primary objective of moving closer Towards Zero Water."

Jan 1, 2017

By T. Holmes, D. C. Russell, G. Jolly

"The AMEC Oakville office is involved in the design and construction of an iron ore concentrator located in Liberia. Currently, the site ships Direct Shipped Ore (DSO) to overseas customers. The DSO mine-site and port can experience heavy annual rainfalls. The IMSBC Code requires that cargoes are only accepted for loading when the moisture content of the cargo is less than its Transportable Moisture Limit (TML). The moisture content of the DSO has, on occasions, risen to near or above its TML. AMEC was asked to advise whether the concentrate produced from the new concentrator would or would not have the same problems with moisture content and ship loading as the DSO.INTRODUCTION Liberia was, at one time, the world’s sixth largest exporter of iron ore and used some of the most modern mining operations of their time. However, the country has not produced iron ore over the past seventeen years because of civil unrest. The return of stability to the country has allowed the redevelopment of the iron ore industry. ArcelorMittal Liberia (AML) obtained a concession for mining in the Nimba County area of Liberia (Figure 1) in December, 2004 and has studied the known iron ore deposits and former mining operations in this area. It began phase 1 operations in June 2011 with the direct shipping of high grade ore at a rate of up to 4Mtpa. The processing of the lower grade ore in phase 2 of the project requires additional processing capability to produce at the design rate of 15Mtpa. DSO and Concentrate The DSO in the first phase is selectively mined at an average grade of 60% Fe, and then crushed and screened to -10 mm with no washing or concentration. Testing of samples has indicated a size distribution that is finer than typical sinter feed material, although critical material below 0.10 mm is low in most cases, and overall the ore is coarser than typical concentrates or ultrafine products (Feasibility study report, 2011). The phase 1 DSO facility will cease operation after the phase 2 concentrator comes into operation."

Jan 1, 2014

By Frank B. Amon

Highland Valley Copper had to make some significant changes in the way it was working in order to counter the effects of ever-increasing costs and decreasing metal prices. A mine/mill optimization plan started in 1997 introduced new technologies and management approaches that resulted in a dramatic drop in cash breakeven costs. The changes involved employee training, added authority and responsibility for staff, better communications, and a consistent approach to setting and achieving property-wide goals. The net effect was to change the culture of the organization from one that was fragmented and focussed on local objectives to one that is cohesive and has common goals. These changes have allowed the mine to remain in business during a protracted period of low metal prices, and have positioned the mine favourably to benefit even more from any future increase in prices.

May 1, 2004

By J. A. López-Molina, S. García, V. Castellanos-Pedroza

"Grouting aims to reduce the permeability of rock mass below a predetermined value and has been widely used in rock engineering field for a long time. However, the injection procedure needs several empirical decision makings and it is rather difficult to reliably confirm the achievement of improvement, because the grout penetration process is not sufficiently clarified. This investigation proposes a neuronal method of defining spatial distribution of rock hydraulic properties and a fuzzy scheme for estimating their relation with the grout penetration (consumption, localization and filling material). The intelligent method stands as a tool for helping in harmonizing the sealing activities and the medium conditions. The virtual simulation of grouting strategies embraces geology, hydraulic and rock characteristics and the filling process. Important aspects as different pressure injection levels and fracturing systems can be holistically studied using the intelligent environment, resulting in an advantageous, economic, flexible and interactive tool for planning better this critical activity.INTRODUCTION Grouting is a very common method of sealing rock and repairing concrete structures (Butron et al., 2010) and its use in engineering of dam-foundation and tunneling has been documented as very successful (Yang, 2004). Generally speaking, to achieve the closing purpose, boreholes are drilled into the rock mass and grout is injected (under pre-selected pressure) until the fractures around the borehole are filled. The complete filling of these fractures is possible if they are connected to each other in such a way that the remaining water and air can be displaced outside the designed grouting zone (Houlsby, 1990; Kutzner, 1996). Water testing is necessary for evaluating seepage potential and for determining whether grouting is necessary or practical. Regardless of the main reason for the investigations, design of a program for water testing for grouting should consider the type of structure to be built, the geologic conditions at the site and the level of seepage control desired. As information gathered the report must content the fracture openness, number and connectivity, exploratory drill holes orientations, materials situation and a panorama of rock-mass state (quality)."

Jan 1, 2015

By J. R. Goode

ABSTRACT Aurora Energy Ltd. is considering a 10,000 t/d process plant to produce 97 million lb (43,998,460 kg) of U3O8 over a 17-year project from uranium deposits in coastal Labrador. This paper summarizes the test work, mostly done by SGS Mineral Services in Lakefield, Ontario, and the economic studies supporting flowsheet selection. The proposed flowsheet includes semi-autogenous grinding (SAG) and ball milling, acid leaching using air/SO2 as an oxidant, and resin-in-pulp (RIP) extraction of uranium from the leached slurry. Other unit operations examined include ore sorting, heap leaching, liquid- solid separation, solvent extraction, and nanofiltration for eluate upgrading. We also review the extensive environmental test work and studies that were completed.

Jan 1, 2012

By F. J. Alcock

THE Magdalen islands have recently been attracting attention as a possible source of manganese. As early as 1880 small masses of manganese oxides were known to occur in the soil and at least one attempt was made to develop them. In 1939, after the outbreak of war, interest in the possibilities of the field was again aroused and during the winter of 1939-40 claims were taken up by two groups of Toronto interests. The islands also contain large quantities of gypsum. During the summer of 1940, the writer mapped the islands geologically, giving particular attention to a study of the manganese occurrences. For a base-map, the chart of the islands was enlarged to a scale of half a mile to an inch. Additional roads were added from traverses carried out in connection with the geological work, and form lines with approximate 100-foot intervals were put on from barometer readings. The geological map is the first that has been prepared of the islands. Previous Work In the summer of 1880, James Richardson of the Geological Survey of Canada studied the rocks of the islands and his r~port concerning them appears as Part G of the Report of Progress, 1879-80. In 1903, J. Obalski, Inspector of Mines for the Department of Lands, Mines and Fisheries of the Province of Quebec, visited the islands, chiefly to investigate the occurrences of manganese and gypsum, and his notes are found in the report on mining operations in the Province for that year. Around 1890, Robert Chalmers of the Geological Survey paid a visit to the islands, and his observations, which chiefly concerned the surface geology, appear in the Annual Report of the Survey, Vol. VII, 1894, Part M, p. 94. The next geological work was carried out by John M. Clarke, Director of the New York State Geological Survey. Clarke paid many visits to Gaspé peninsula between the years 1900 and 1920, collecting fossils and gathering h1s~orical data, and extended his investigations of Gaspé county over to the Magdalens. His Observations on the Magda/en Islands is included in the New York State Museum Bulletin 149, seventh report of the Director, 1910.

Jan 1, 1941

By Wayne Phillips, Anatalia Silva, Robert Henderson, Tondo. Luis

"Kinross’ Paracatu Mine has 20 years of operational success as one of the lowest grade milloperated gold mines in the world. At year end 2005, Paracatu’s Proven and Probable Reserves were 1.18 billion tonnes at a grade of 0.40 g/t Au, containing a total of 15.2 million ounces of gold.In 2005, the plant processed 17 Mt of ore and produced 180,519 ounces of gold at a cash cost of US$274/oz. An investment of US$470 million has been approved to expand production to 61 Mtpa in 2009 which will extend mine life to 2036. During the period from 2009 to 2013 the project is expected to produce an average annual output of approximately 557,000 ounces of gold at an average cost of sales of approximately $230 per ounce.The soft, friable ore containing readily leachable gold associated with sulphides lends itself to simple processing. The process flowsheet consists of crushing, grinding, gravity recovery, flotation, concentrate leach and carbon adsorption to produce bullion bars. This paper describes the current operation, the deposit’s unique metallurgical features and the future expansion plant that has been designed to optimise recovery of gold.INTRODUCTIONRio Paracatu Mineração (RPM), a wholly owned subsidiary of Kinross Gold Corporation, operates the Paracatu mine. The mine is located in Brazil, 230 km south west of Brasilia in the north west portion of the State of Minas Gerais. The city of Paracatu, which has a population of 83,000 people, is just 2 km south of the mine."

Jan 1, 2007

By R. White, C. Doyle, B. Martin, C. Díaz, J. Hrepic, G. Cuthbert

"A program initiated to improve the service life of the magnesite-chrome refractory in the top blown rotary converters at INCO’s Copper Cliff Nickel Refinery identified slag corrosion as a major wear mechanism. Target slag compositions were established to produce a non corrosive slag. A plant program to achieve this target slag by the addition of controlled amounts of do lime and MgO was instituted. Addition to rates of the slag modifiers was optimized based on the slag composition assays achieved and the requirement to address corrosion effects on the high alumina content ladle refractory. A60% gain in TBRC refractory performance was eventually achieved and has been maintained yielding a net annual savings of $700,000. A significant gain in available converter operating time has also been realized.IntroductionINCO’s Copper Cliff Nickel Refinery utilizes two top blown rotary converters (Fig. 1) to smelt a blend of semi-refined nickel concentrates, producing a granulated nickel matte suitable for the adjacent carbonyl based nickel refining operation. The converter, or TBRC, operation is a batch process composed of feed charging and melting, oxidation of the excess sulphur in the matte, and reduction of residual nickel oxide. The final matte, containing about 78% nickel, is tapped at 1600°C from the converter and is granulated in a sluice equipped with high pressure water jets."

Jan 1, 1997

By N. Katsikaros, R. Agius, B. Adaszynski

"With stricter limits globally being imposed on cyanide discharge levels in plant tailings, having a reliable and well designed cyanide detoxification circuit is critical for any operation. The INCO SO2/Air method is most commonly used for cyanide detoxification where sulfur dioxide and oxygen combine to oxidize cyanide to the much less toxic cyanate. This paper discusses the steps involved with the development, from laboratory through to design, of a robust cyanide detoxification circuit. The goal is to produce a cyanide detox circuit that reliably meets discharge target with the lowest operating and capital cost.Design begins in the laboratory where continuous tests simulate full scale operation of a detoxification circuit. Detailed design relies on several design parameters, based on theory and experience, to ensure the reactor can satisfy requirements of the cyanide destruction reaction. Selection of the correct reagents and their supply to the reactor is important to an operable process with minimal operator workload. The operability of the system relies on correct process control strategies to maintain optimal reagent addition and chemical conditions in the reactor. These design factors are critical to providing a robust plant that will consistently meet cyanide discharge levels, ensuring uninterrupted production and plant profitability."

Jan 1, 2014

By P. Radziszewski

"The comminution energy curve is a profoundly simple graphical technique that displays detailed operating efficiency information for industrial comminution processes. The database underlying the methodology has recently more than doubled, to now contain a substantial fraction of the international comminution output (1.7 billion tonnes of rock per year) across more than 8 major commodities. This increase has deepened the analytical capabilities and effectiveness for assessing comminution circuit performance in relation to comparable operating mines. This paper will explore how the energy curve methodology can be used to examine the ability of stirred mill technologies to increase efficiency.Specifically, this paper explores how the energy curves methodology can be used to present energy efficiency gains achieved at three mines employing a stirred mill technology under different duties. The first of these cases studies was conducted by Rosa (2014) who compared the performance of two ball mills operating in parallel with a Vertimill in the regrinding circuit at the Samarco Iron project in South East Brazil. The Vertimill was found to achieve the same product specification while consuming 40% less energy. Brissette (2010) investigated the impact of grinding media on the performance of both ball mills and Vertimills. The energy savings achieved varied from 10% to 40% for the ball mills and 30% to 60% for the Vertimills. Lastly, Bergerman (2012) investigated the operating conditions of the Sossego regrind circuit from 2006 to 2011 against design specifications and laboratory testing. The operating work index of this circuit varied from 5.2 kWh/t to 44 kWh/t over this 5 year period. The full suite of energy curves"

Jan 1, 2016

By F. S. Thurner

"This paper describes the engineering and construction activities of the ""design-build"" project awarded to the joint venture of Foundation-Comstock-Janin for the construction of the plant and wharf facilities, camp site, power plant and all supporting services. As a member of the Foundation Group of companies at that time, Fenco actecl as consulting and design engineers for the project. Particular emphasis is given to the problems which adversely affected design and construction activities due to prevailing arctic conditions and the remote location of the project. The paper also describes the approach taken in the investigation of the site and soil conditions as well as the selection of the special structures for the 225,000-toncapacity fibre storage building, the wharf structure for 50,000-dwt vessels, and the 1,000-tph-capacity reclaiming and ship-loading facilities . It further covers the logistics problems and the scheduling activities related to the short duration of the shipping season, and the transportation of equipment and mate1•ials by sea as well as by air."

Jan 1, 1976

By Ioannis K. Kapageridis

The lignite deposits of the Kozani-Ptolemais-Amyntaio basin in western Macedonia (North-West Greece) present a difficult modelling problem. Each deposit consists of several thin lignite layers ranging from a few centimetres to a few tens of centimeters in thickness, and thin intercalated sterile layers of marly limestones, marls, clays, and sands. These layers are practically impossible to model individually due to fast lateral transition of lignite layers to humus clay and vice versa and the lack of reliable and detailed stratigraphic correlation, leading to compositing methods being applied prior to any interpolation and modelling. The complexity of the deposit is further increased by the presence of a number of faults. This paper presents the modelling and estimation procedures applied during the most recent study of the South Western Field ? a new deposit that is considered for development and lignite production over the next years and will support the operation of a new power station in the area. Special focus is given to drillhole database structuring, fault modelling, stratigraphic correlation, mineable lignite intervals compositing, and resource estimation. The use of specialised mine planning software in all stages of modelling and estimation is thoroughly explained.

Oct 1, 2009

By J. L. Jobe

In planning the operation of a new mine or new sections of an operating mine, due provision must be made for the ultimate recovery of as much of the seam as is consistent with safety and economic principles. Each mining district and, indeed, each seam, especially in mining under submarine conditions, has individual problems which render hard and fast rules under all conditions of mining impossible. However, certain basic principles can be applied to all seams under specific conditions. In all mines, the two basic methods of mining, 'longwall' and ?room-and-pillar? or their variations, can be adopted, but certain fundamental factors must be analyzed before either method is finally applied to the extraction of the seam. The factors which enter into the successful, safe, and economic extraction of all seams are, briefly stated, as follows: (1) Character and thickness of the seam. (2) Character of the floor and immediate roof of the seam. (3) Composition, strength, and thickness of the overlying beds to the surface. (4) The depth of cover to the surface or sea bottom. (5) Conditions under which the seam is mined (land or submarine area). (6) Pitch of the seam. (7) Economic value of the seam. (8) Mining laws.

Jan 1, 1947

By G. C. Lipsyy

ALL mineral production? of Can11.da is transported in a mine car at some stage during its extraction. There are as many types and varieties of mine cars as there are of mines. Many of the cars in use were developed in the blacksmith shop. Others were designed by engineers and improved by the mine foremen and the mechanics. Every mine car has the ideas of miner, blacksmith, mechanic, and engineer incorporated in it. Many of these ideas are not generally known. This paper was written to make at least some of this information available to the mining industry. In drawings, tables, and notes, it gives all the important details pertaining to the cars. It .does not recommend any particular type of car for any particular piece of work, nor does it present drawings from which a car can be built. It gives the engineer or master mechanic information on many cars which he can apply to his own particular problems. It is hoped that this information will be of use to mine operators. If a few new ideas are conceived as a result of the paper, the author will feel that the effort of compiling it has been worth while. In order to obtain the data for the preparation of the paper, a questionnaire, copy of which is here reproduced, was sent to all the operating mining companies in Canada. An accompanying letter briefly explained the purpose of the paper and asked for co-operation in furnishing as complete information as possible.

Jan 1, 1945

By William E. Roscoe

"Non-producing mineral properties include those at various stages of exploration, properties at the pre-feasibility or feasibility stage, properties with currently uneconomic mineral resources, and past-producers. The market approach is applicable to all these types of non-producing mineral properties. Income approach methods such as discounted cash flow and option pricing are generally not applicable to properties at the exploration stage, but may be applicable to non-producing mineral properties with defined mineral reserves or mineral resources.The value of a non-producing mineral property depends on its perceived potential for the existence and discovery of an economic mineral deposit. The potential, in turn, depends on a number of factors which must be considered when choosing market comparables. These comparability factors include such items as geology, mineralization, stage of exploration and results, mineral resources, location and geography, and political jurisdiction. The date of the market comparables must be within a reasonable time period of the valuation date of the subject property. Although it is difficult to find good market comparables because of the unique nature of mineral properties and the small number of transactions, these difficulties are compensated for by analyzing a number of transactions on similar properties to develop a range of values for the subject property.For valuation purposes, market comparables can be expressed in terms of total property value, value per unit area (e.g., $ per hectare), or value per unit of metal contained in mineral resources (e.g., $ per ounce of gold, or $ per pound of copper). The market comparable value can be used to estimate the value of the subject property by using the total property value, unit area value or contained metal value."

Jan 1, 2003