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By F. Habashi

Magnesium is the eighth most abundant element in the earth's crust, It occurs in nature in sea water, brines, and a number of minerals, Metallic magnesium was first isolated by Humphry Davy (1778-1829) in England in 1808 via electrolysis of anhydrous magnesium chloride with a mercury cathode, Antoine Bussy (1794-1882) in France extracted the metal in 1828 by reducing fused magnesium chloride with metallic po¬tassium vapour, The first industrial production of magnesium by electrolysis of molten carnallite began in 1886 in Hemelingen in Germany, In 1940 Lloyd M, Pidgeon (1903¬1999) in Canada pioneered the first industrial metallothermic magnesium extraction plant based on the reduction of dolomite with ferrosilicon under vacuum, Since then the magnesium industry developed further and a variety of processes are presently used.

Jan 1, 2006

By Geo. E. Cole

A GREAT deal of time and energy is now being devoted to the study of post-war reconstruction and rehabilitation, in spite of the fact that as yet we have not won the war in which we are presently engaged. If you feel that the study of post-war problems takes our thought away from the problem immediately before us, you may well query, "Well! What has all that to do with winning the war, our most urgent problem today?" The answer has been given by Principal James of McGill University, Chairman of the Cabinet Committee on Reconstruction: "Reconstruction is something which must be thought of in advance, partly for the purpose of recognizing exactly the influence of war-time activities, controls, and regulations on the post-war Canadian scene. Many people are acutely interested in this great problem. It is not that they are not interested in the war itself, or epochal events that are taking place from day to day. They have a vision of that future which they hope will be Canada's, and this vision inspires them to even greater efforts at the present time". The trend of events would indicate that changes, economic and industrial, after this war will be greatly out of line with those that followed previous wars in history, for the present struggle has involved every nation in the world. In the peace that will come, every engineer will have a task in bringing the most desirable order out of the most distressing chaos. We certainly are living in a changing world; we are witnessing geo-graphical and economic readjustments that no other generation in world's history has ever witnessed. And there is an opinion gaining strength in our Dominion, as in other lands, that after this war we shall live in a world in which our process of thinking and our very way of life will have to undergo drastic changes to cope with the new order of things. Sadly our world of today has had to revise the sublime vision that nation shall not lift up sword against nation, while salvage operations continue to beat ploughshares into tanks and the peaceful pruning-hook into a weapon for the deviltry of the commando.

Jan 1, 1943

By D. Mas Ivars, K. Suzuki, J. A. Vallejos

"A comprehensive geotechnical characterization has been undertaken at the El Teniente mine to describe and determine the rock mass behaviour strength properties of the primary copper ore. The Synthetic Rock Mass (SRM) modelling approach is used to simulate the mechanical behaviour of this heavily and unfractured rock mass. The micro-parameters of the model have been calibrated against mechanical properties and scaling laws for intact rock and veins, in order to represent virtual samples of four different geotechnical units. Results can be used to predict the rock mass scale effects, anisotropy, and brittleness properties that cannot be obtained using empirical methods.INTRODUCTIONThe primary copper ore at the El Teniente mine is described as very competent and massive, given that it exhibits a brittle behaviour (Rojas, Cavieres, Dunlop, & Gaete, 2000). This description is coherent with the geological description of the rock mass, which does not have discontinuities match as the definition provided by International Society of Rock Mechanics (ISRM, 1981). Only faults can be classified as discontinuities, but they are widely spaced. The primary copper ore has a high frequency of veins, where the cooper mineralization is hosted, these vein network structures are known as stockwork. Soft veins containing weak minerals as infill (chalcopyrite and anhydrite) control the disassembling of the rock mass during caving (Brzovic & Villaescusa, 2007).Presently, there are mainly two traditional methods used to estimate the strength of the rock mass: 1) determination of the strength envelope of the rock mass using scaling parameters from laboratory tests and 2) using numerical modelling based on back analysis of previous experiences of failure observed and measured in mining or civil excavations. The primary copper ore of El Teniente mine has no fractures; therefore, it is difficult to determine a rating that would enable to scale laboratory data, such as, RMR (Laubscher, 1977) or GSI (Hoek, 1994). This is the reason why the first option is not valid unless the entry data is manipulated or adjusted in order to obtain reasonable results. The second option requires, in general, a good characterization of a previous failure event in the rock mass, which is not always available. In recent years, new techniques of numerical modeling have been developed (PFC3D, ELFEN, Abaqus). Those methodologies are the third way to estimate the strength of the rock mass, but they are still in development. Particularly, the concept of SRM developed by Itasca is implemented in this study (Pierce, Mas Ivars, Cundall, & Potyondy, 2007; Mas Ivars et al., 2011), aiming to capture the real behaviour of the rock mass."

Jan 1, 2015

By G. Marchand, R. H. Hay, E. C. Pearson

"AbstractA polishing .technique is described together with two anodic etching methods for aluminum and its alloys. Some of the optical and structural characteristics of the film formed by •these etching methods are discussed and it is shown to what degree these properties of the film are related to the crystallographic orientation of the metallic substrate. Applications to the study of recrystallization and twinning phenomena and to the study of plastic deformation, banding, and texture estimation are discussed. Micrographs are shown .to illustrate the manner in which the technique is particularly well suited to the study of such phenomena.IntroductionThe physical metallurgist is constantly faced with the problem of polishing and etching of metallic sections. Mechanical polishing is tedious, time consuming, and not applicable whenever a surface entirely free from plastic deformation is required. Etchants are generally required to reveal the grain structure in order to determine its size, shape, and regularity, or to bring up constituents. In the case of aluminum, the .most common etchant to reveal grains is a mixture of three acids: HC1, HN03, and HF. This etchant is fairly satisfactory on certain alloys and for certain metallurgical conditions but in general fails to give a good definition of the grain on castings, on highly alloyed products, and whenever the grain is smaller than 100 microns in diameter. Besides size and shape, a grain, or crystal, has an orientation and may be endowed with several types of imperfections."

Jan 1, 1952

By C. J. Clayton, A. J. Haynes, D. A. Hickson, B. Thiele

The Meadowbank Gold Project, formerly owned by Cumberland Resources Ltd. and currently owned by Agnico Mines Ltd., is currently being developed approximately 70 km north of Baker Lake, Nunavut, in the eastern Canadian Arctic region. The Meadowbank Gold Project currently consists of a series of gold-bearing deposits within relatively close proximity to one another, which are planned to be mined primarily as a truck-and-shovel open pit operation using conventional gold milling and extraction. The mining plan indicates that approximately 20 million tonnes of ore will be mined over a mine life of eight to ten years. The operation will generate approximately 160 million tonnes of mine waste rock and about 20 million tonnes of tailings. The site is located in an area of continuous permafrost with mean annual average air temperature of -11°C and average annual precipitation in the range of 100 to 200 mm. Lakes cover a large portion of the site, including some of the ore deposits. The location of the site and the physical environment pose challenges to development. This paper presents some of the designs considered to effectively manage and utilize the waste products of mining at the project. Note that volumes, tonnages, construction concepts, and data presented in this paper are accurate for the time of writing and are subject to change and modification as the project progresses, additional modelling is carried out, and additional data are obtained.

Jan 1, 2007

By D W. MacFadgen

THE operating advantages of the longwall retreating system of mining, as opposed to longwall advancing, have been well known for many years. Although retreat walls have been successfully worked in the past in some of the collieries of the Dominion Steel and Coal Corporation in the Sydney, Picton and Cumberland areas, the adoption of longwaIl retreating as the general sys-tem of mining has not been attractive in the Sydney field, due to the time and expenditures required to drive roadways to the boundary. In addition. difficulties in maintaining effective ventilation on the faces, especially under conditions of low barometer, have made the operators in the field hesitant to adopt this as the general system of mining. The development of a machine capable of rapid entry drivage has made possible the driving of the necessary road ways to the boundary at a moderate cost, completely changing the picture and making a retreat system more attractive.

Jan 1, 1961

By V. Panayotov, M. Panayotova, R. Villas-Bôas

The "United Nations Framework Classification (UNFC-2009) for Fossil Energy and Mineral Resources 2009” is the international system designed to meet (to the extent possible) the needs and to support the decision making and resources management of private industry investment, governments, policymakers, bank investment, scientists. There are different international and national systems classifying commodities (resources, reserves, possibility and feasibility to extract them, etc.) with their own definitions and reporting terminology which often do not overlap entirely or even differ significantly - thus creating difficulties and problems among stakeholders to understand each other. The UNFC-2009 is developed to allow “speaking in one language”. The paper presents briefly the UNFC-2009. The UNFC-2009 applies simultaneously three fundamental criteria to classify projects: economic and social viability, field project status and feasibility, and geological knowledge (so called E, F and G axes), thus creating a visualized, easily understandable three dimensional system. The E, F and G axis categories are divided to subcategories, using additional criteria. The UNFC-2009 is already applicable to solid minerals, nuclear fuel resources, petroleum. The amounts of solid waste generated by metals production from ores (mining, minerals beneficiation, extraction metallurgy) and its metals content are discussed from the viewpoint of using the waste as resource. An attempt is made to apply the UNFC-2009 to technogenic waste from metals production from ores - both to old engineering constructions (historic mining dumps and reclaimed beneficiation tailings ponds) and new (currently in use) dumps and ponds.

Jan 1, 2016

By G. F. Cross

INTRODUCTION THE electrical system associated with the mining development of the Hudson Bay Mining and Smelting Company, Limited, at Flin Flon, Manitoba, may be conveniently divided into three main parts, namely, the Island Falls power plant, the transmission line, and the distribution systems at the mine and metallurgical plants. For a description of the Island Falls power plant and the transmission line, the reader is referred to the paper, to be presented at this meeting, by R. W. Davis and M.F. Huffaker (1). The transmission line and sectionalizing combinations are shown diagrammatically in Figure 1. The present paper deals with the distribution systems at the Flin Flon mine and metallurgical plants. THE FLIN FLON DISTRIBUTION SYSTEM In the high-tension sub-station at Flin Flon, each incoming 110 kv. line is provided with manually operated, gang-type disconnecting switches. Each line is connected to Canadian General Electric type F.H.K. 39-60B-F.2 T.P.S.T. 110 kv. 400 amp. oil circuit breakers, each provided with M.K.4 centrifugal motor-operated closing mechanism. Gang-type disconnecting switches are installed on each side of incoming line breakers, and a complete ring bus system is formed through station tie breaker, which is' further provided with gang-type disconnecting switches on either side. The?bus tie breaker is of Canadian Westinghouse design, type G.22B, 110 kv., 400-amp., solenoid-operated. All three breakers are provided with bushing-type current transformers, and the two line breakers are further equipped with bushing-type potential devices. Oxide film lightning arresters (121 kv.) are installed on each incoming line and are located outside the station. Each line is further provided with interlocked gang-operated ground disconnecting switches. All disconnecting switches are mechanically connected to auxiliary switches, which provide pilot service to indicating lamps in the remote-control room, located in a separate building.

Jan 1, 1935

By P. Kordi, L. Egorova, R. J. Bowell, D. Gurevich, V. Sedov, A. Mikhailov, D. A. Holwell

ABSTRACT Reconnaissance exploration in the Kuene region Namibia has included geological mapping, soil and stream sediment geochemistry, and ground geophysical methods. Copper mineralization occurs within a well-defined belt with north-northwest to south-southeast trend, parallel to the regional strike of the sedimentary rocks. The occurrences vary in size but are generally stratabound. The mineralization is centred on the transition from calcareous shale and interbedded limestone, through carbonate rocks, to quartzite. Geochemical anomalies have been identified correlating to induced polarization (IP) and magnetic anomalies. The anomalies identify one potential metallogenic zone more than 17 km in strike length.

Jan 1, 2012

By J. Oré

An alternative method for dewatering slurry (tailings) is the use of geocontainers (MacTubes). The practical application of this work was carried out in the concentrator plant of the Raura Mining Company, located in the occidental mountain between Huánuco and Lima in Peru?s central highland. For the development of the research, the MATLAB R2012a software MGeST (v. 1.0) was used (Slurry Geocontainer Maccaferri Treatment). MGeST is used for sizing MacTubes, which allows determination of the most important design parameters, such as height (H), filling residual pressure (P1O ), strength of geosynthetic (T), and dehydration height. Compared with GeoCoPS v. 3.0, there is a maximum difference of 3% between the results obtained. The tailing to be treated in the MacTube have a specific weight of 11.62 kN/m3. After several tests it was determined that a MacTube of an apparent opening size of 0.22 mm was required for this specific weight.

Aug 1, 2013

By P. C. Lighthall, D. W. Zandee, W. Shukin

"IntroductionThis chapter deals with the on land disposal and storage of fine tailing in slurry form behind dams. Other types of tailing, such as coarse dry cobbs from magnetic separation of iron ores and other dry materials, have special problems and are not addressed in this paper. The disposal of mine waste is not included, except as such materials may be of value in the construction activities related to tailing disposal.In earlier North American mining, mines were smaller and frequently disposed of their tailing by direct discharge into neighbouring streams or bodies of water. Where that was not practical or not permitted, the solids were collected in tailing ponds and only the effluent liquids were released or decanted. The dams used for these early impoundments were fragile structures and failures were common. With the advent of large, low-grade open pit mines, and increasing awareness of environmental and safety considerations, recently established mines have carefully-designed tailing disposal systems, with wellconstructed dams and attention given to protection of the environment. Older mines are being improved or at least being examined critically with a view to upgrading as necessary to meet the new standards.Modern tailing disposal systems are highly variable and unique to each mine. Tailing pond selection and design is dependent on available topography as also is the design of transport and water reclaim systems. Suitable sites that are at higher elevations than the mills or distant from them may require that the tailings be pumped. Dams, either earth or rock structures built of the most convenient and economic material, are usually a suitable mix of local borrow, mine waste and coarse tailings. The most economic structures are those built mostly of coarse tailing."

Jan 1, 1989

By X. Wu

Tunnel Boring Machines (TBMs) are widely used for tunneling in urban areas because of their high advance rate, precise as-built profile and minimal impact to buildings and traffic on the ground. For a tunnel built by a TBM, there are strict requirements on alignment control and safety. To meet these requirements, it is important to monitor the position of the TBM. In the current practice, the TBM position data, including advance distance and line and level deviations, are reported manually to the managers on a daily basis. To interpret and analyze the position data, the managers also need to refer to various construction drawings. This practice is untimely, inefficient, and error prone for decision making. To improve the current practice, an automatic approach for real-time as-built tunnel product modeling and visualization is proposed, based on TBM position and orientation data autonomously sourced from the Virtual Laser Target Board (VLTB) TBM Guidance System developed at University of Alberta. Related information of the tunnel project, such as the as-designed alignment, soil layers, the ground, existing utility lines, is also visualized together with the model of the as-built tunnel. The modeling algorithm is presented step by step. Its application in a real-life drainage tunnel project is discussed and limitations are also identified.

Aug 1, 2013

By Shila Jafari, Mari Lundström, Aleksei Kritskii, Pia Sinisalo

A typical process adopted at nickel plant is the processing of nickel-copper mattes and converter mattes using the following technology: pressure oxidative leaching (POX), solvent extraction (SX), electrowinning (EW), cobalt recovery, and solutions purification. As a result of multi-stage atmospheric and autoclave process leaching, copper-nickel separation is achieved. Cobalt and nickel are further separated by SX. Copper in the process can be removed as copper cake (Cu-cake), which is a by-product with high content of valuable metals. In the current paper, a method combining atmospheric and pressure leaching of Cu-cake in sulfuric-acid media is discussed. Suggested method allows to obtain high copper extraction (>98%), with leach residue containing precious metals and PGMs. Sulfuric acid media was chosen to make the suggested technology adaptable for the primary POX-SX-EW circuit. The initial Cu-cake was analysed and a range of process parameters (t = 25–190°C; PO2 = 0–7 bar) investigated to achieve the optimal conditions for leaching process at the ambient as well as at increased pressure. As a result, an initial process block diagram for the treatment of Cu-cake with high copper leaching efficiency and low metal losses is provided. INTRODUCTION The conventional technology for nickel sulphide ore processing includes the following main stages: froth flotation, matte smelting and converting. The subsequent processing of nickel converter matte is possible using fundamentally different approaches - hydrometallurgical (Llanos, Queneau & Rickard, 1974; Rademan, Lorenzen & Van Deventer, 1999; Kshumaneva, Kasikov, Neradovskii & Belyaevskii, 2009; Dutrizac & Chen, 2013) and pyrometallurgical (Tsymbulov, Knyazev, Tsemekman & Golov, 2007). Hydrometallurgical approach in comparison with pyro-process has several advantages, such as reduced environmental load, reduced PGM losses, increased copper and nickel extraction. Typically, hydrometallurgical technologies include leaching, solvent extraction as well as nickel and cobalt recovery in metallic form by electrowinning or hydrogen reduction or as valuable metal salts via crystallization process (Crundwell, Moats, Ramachandran, Robinson & Davenport, 2011).

Jan 1, 2019

By J. C. Roy, S. Couture, C. Barbeau

The chemical composition of the asbestos tailings from different mines in the Eastern Townships of Quebec are fairly uniform in composition. The serpentine minerals antigorite and chrysotile form about 85 to 90 per cent of the total. Iron oxides add another 7 to 10 per cent; magnetite represents about 70 per cent of the oxides. Chromite is present in amounts of about 0.5 per cent. The average contents of elemental magnesium, iron and nickel are 23, 6 and 0.25 per cent respectively.

Jan 1, 1972

By Junhyun Choi, Allan Gomez-Flores, Chonbuk National University, Siyoung Q. Choi, Gahee Kim, Seungkon Kim

In this study, to confirm the effect of depletion attraction on the flotation, we theoretically and experimentally investigate the effect of the depletion attraction force on flotation. While varying the concentration of the depletion agent (polyethylene glycol), three different systems are studied: pure malachite, pure silica, and a 1:1 mass ratio of malachite and silica binary system. We find that recovery increases significantly as the concentration of the depletion agents increases for all three systems, as the depletion agent facilitates the adsorption of the particle on the bubble surface. However, the recovery suddenly decreases in a certain concentration range, which corresponds to the onset of the decreased surface tension when high concentrations of the depletion agent are used. This non-monotonic overall recovery trend implies the surface adsorption of the depletant on a surface. The decreased surface tension of the air/water interface suggests that the recovery rate is lowered due to the adsorption of the depletion agent to the bubble surface, acting as a polymer brush. Based on our observations, we conclude that the depletion force can greatly improve particle adsorption, as predicted in the accompanying theory paper, while simultaneously the adsorption of the depletion agent on the bubble surface plays an important role because it hinders particle adsorption. We also perform experiments in the presence of a small amount of a collector, sodium oleate. An extremely small amount of the collector leads to the increase in the overall recovery, which eventually reaches nearly 100 percent. Nevertheless, the grade worsens as the depletant provides the force to silica particles as well as target malachite particles.

Jan 1, 2016

By Erik C. Westman

Knowledge of the orientation and relative magnitude of in-situ stresses at the mine scale is important for safe and efficient production from an underground mine. With this knowledge, stope location and scheduling can be optimized. Passive seismic tomography was used for imaging horizontal stress distribution at the mine scale. Microseismic measurements from the Creighton mine were used as input for the tomography calculations. The double-difference tomography algorithm was used, which provides the most precise results. The results clearly show a low velocity zone in the previously mined areas bounded by two high-velocity lobes located adjacent to the mined openings at locations consistent with those expected due to the horizontal stresses at the mine. The overarching goal of the research is to provide a tool that can augment both numerical modeling results and underground geotechnical measurements to allow the mine operator to produce in the safest and most efficient manner possible.

Jun 1, 2012

By P. R. Jones

"The paper describes the CDN$400 million expansion at Hudson Bay Mining and Smelting Co., Limited’s operations. The company has continuously produced copper and zinc at the Flin Flon metallurgical plant since 1930. The paper details the company’s operational turnaround since 1995 and “The 777 Project” which includes two new mines, expansion and modification of the concentrators, expansion of the zinc pressure leach plant, a new zinc electrolytic cellhouse and modifications to the copper smelter gas handling system to reduce ground level gas emissions. IntroductionHudson Bay Mining and Smelting Co., Limited (HBMS) was incorporated in 1927 to mine and process the world-class Flin Flon copper and zinc orebody. Ore concentration and metallurgical facilities were constructed in Flin Flon. The metallurgical complex capability is currently 89 000 tonnes of copper metal and 98 000 tonnes of zinc metal from both HBMS and purchased concentrates.Flin Flon, with a population of 7000, is in Manitoba and partly in the province of Saskatchewan. The location is isolated with Winnipeg 800 km to the south and Saskatoon 500 km southwest.Today, three underground mines feed the Flin Flon concentrator, one feeds the Ruttan concentrator at Leaf Rapids, 200 km to the north of Flin Flon, and Chisel North mine feeds the Snow Lake concentrator (Fig. 1).The Flin Flon volcanic massive sulphide proximal and distal orebodies are within the Flin Flon greenstone belt which stretches from the west of Flin Flon to the east of Snow Lake, a distance of 250 km. The belt is approximately 100 km wide before disappearing below the paleozoic cover to the south."

Jan 1, 2001

By J. I. Gazzarri

A model of solid oxide fuel cell AC impedance behaviour has been developed and is used to simulate the frequency response of a single cell with and without mechanical damage. The results indicate that the presence of mechanically induced damage within the components of a solid oxide fuel cell can be detected by comparing the frequency response of the undamaged cell with that of a cell in which in-plane cracking or delamination has occurred. The presence of such defects manifests itself as a new semicircle in the Nyquist impedance diagram of the full cell. A parametric study reveals the resolution capabilities of the method in terms of the geometrical characteristics of the defects.

Jan 1, 2005

By K. E. Haque

"Radium is selectively leachable from uranium ores with various types of lixiviants. Among a number of lixiviants tried on Midwest Lake uranium ore, KCl provided the highest per cent of radium extraction (60%-65%). Leach results further confirmed that a certain portion of Ra is not amenable to KCl leaching. More than 99% of the dissolved radium could be removed by treating the KCl leach liquor with barite or with radium selective complex resin (XFS-43230 resin of Dow Chemical Inc.) or by precipitating as RaBaSO4. Uranium leachings from the Ra-preleached uranium ores indicate that radium leaching prior to uranium may be applied as an extension to the conventional or alternative (i.e. acid chloride) leaching process of uranium ores in order to yield environmentally acceptable tailings (in terms of radium in the solids).IntroductionAt present, radium is considered as an environmental issue, particularly for uranium ore mine mill operations, rather than a commercial commodity. Radium was once a highly priced commodity ($180/mg during the first great war) but now it hardly has any commercial value. Its principal applications were in the field of cancer treatment and in the manufacturing of lwninous dials for watches. Nowadays readily-available synthetic radioisotopes are finding applications in place of radium.Because of scarcity and high toxicity, further commercial applications have never been explored.Radium was first discovered and extracted from uranium ore by P. Curie, M. Curie and G. Bement in 1898. Radium is widely distributed in nature but in exceedingly minute quantities. It is one of the daughter products of uranium or thorium and its maximum concentration is 3.3 x 10-7 part/part of U(21). Because of its short half-life (approximately 1620 years) in a geological time scale, its occurrence in nature as a distinct mineral is most unlikely.The details of the original radium leaching process developed by the Curies and Bernont are in the literature. This process essentially involved the roasting of uranium ore with caustic. carbonate followed by sulphuric acid leaching. The precipitated RaSO4 and BaS04 were treated with boiling Na2CO3 to convert them into the corresponding carbonates which later were dissolved in HCI. RaCI2 and Ba02 were separated and concentrated from the chloride liquor by fractional crystallization. But, in the course of time several modifications were made or proposed to the original process. Regardless of the process employed 226Ra extraction from the uranium ore was seldom better than 90%, and further as much as 20% 2URa loss took place during the concentration and purification process."

Jan 1, 1987

By Michael Samis

Conventional project valuation techniques, such as discounted cash flow (DCF) method, are more frequently being criticised for the manner in which they consider the interacting effects of uncertainty and project structure (including management flexibility) on project value. Modern asset pricing (MAP; often called ?real options valuation? when applied to the analysis of flexibility) is a more general valuation framework that corrects many of the shortcomings of common valuation methods. Previous mining applications of MAP have tended to treat the ore deposit as a homogenous entity. While useful for demonstration purposes, this is inadequate for practical application in industry. This paper presents a MAP valuation example that allows for the heterogeneous nature of an ore deposit. It shows that deposit structure may increase the complexity of the mine planner?s decision so that results of a standard DCF analysis, or a simple MAP analysis that ignores the details of deposit structure, are misleading. In the example, a management is considering the development of an adjacent low-grade zone while mining operations in a high-grade zone are ongoing. If the low-grade zone is developed before high-grade reserves are exhausted, the proposed development will include both low-grade zone development and a capacity expansion to handle additional low-grade reserve production. If development of these reserves is delayed until the high-grade reserves are depleted, then the low-grade reserves can be developed without a capacity expansion. A typical DCF analysis would reduce the management?s decision problem to three alternatives: 1) continue mining only in the highgrade reserves, 2) immediately develop the low-grade reserves and expand capacity, and 3) delay low-grade zone development until the high-grade reserves are exhausted. The model presented here allows the management to reconsider the development and capacity expansion decision on a discrete half-year basis. It delineates price regions, for given levels of high-grade zone reserves, in which it is optimal to develop the low-grade zone, defer low-grade zone development and abandon the mine irrevocably. The model presented here extends the ability of mine planners to describe actual project structure while using the MAP valuation framework that is already noted for its capacity to combine project uncertainty and risk insights with a dynamic project description.

May 1, 2001