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By Douglas B. Silver

"Editor’s note: Douglas B. Silver, Portfolio Manager, Orion Resource Partners, was the keynote speaker at the 2017 SME Annual Conference & Expo in Denver, CO on Feb. 19, 2017. He also gave the keynote address to the SME Annual Conference in 2008. The following is his 2017 keynote address with a few of the slides that were presented. The full speech is available on YouTube https://www.youtube. com/watch?v=uF0qwGJIX3UIn 2008, I had the privilege of giving SME’s keynote address. At that time the financial markets were on the verge of collapse and my presentation described the issues. Unfortunately I was correct, and global markets went into a steep nosedive, creating the largest economic downturn since the Great Depression.In hindsight, there were plenty of signs that this was coming. The Supercycle had created massive new wealth. This wealth was largely invested in the United States due to the country’s political stability and credit worthiness. In 2004, the large investment banks convinced the U.S. Securities Exchange Commission (SEC) to allow them to triple their borrowing leverage ratios. This made the banks more vulnerable to market volatility. The banks then lent money to NINJAS - people with no income, no job and no assets. Even worse was the fact that these unqualified home owners used adjusted-rate mortgages (ARMs) which they, of course, intended to refinance prior to interest rates rising. These mortgages were then bundled up by the banks and sold to investors as “safe” investment products. The money flowed into these products because the rating agencies gave these instruments high marks. These same agencies earned their fees from the very same banks seeking high ratings. (No conflict there). Private debt exploded and peaked out in 2008.These mortgage products were sold in an unregulated shadow banking system and the ARMs came due. Toxic mortgage default rates skyrocketed and the mortgage-backed securities collapsed in value. This house of cards had a negative feedback loop that accelerated the market crash and resulted in more than $1.5 trillion being lost in the securitization sector, a 47 percent decline in the Dow Jones Industrial Average, foreclosure rates skyrocketing and housing prices collapsing. The financial markets were in a nosedive."

Jan 8, 2017

By John E. Auten

The computer program "Spike" is an "expert-rule based system" designed to fulfill two requirements. 1) acquaint unfamiliar personnel with big hole drilling techniques and 2) to stimulate the "old hands" in solving drilling problems. "Spike" will not make anyone a drilling expert The best way to understand a computer program is by example, but first some explanation of an? "expert-rule based system", As the name implies, the program tries to imitate a human expert. Unlike a normal computer program which uses a list of instructions to follow in a set order, a rule-base program has a collection of independent rules without an explicit list of things to do, one after the other. This type of program was mandatory to accommodate the ever changing situations and corrective actions that more accurately duplicate actual drilling operations and the advise of an experienced drilling expert.

Jan 1, 1988

By Robert H. Carpenter

Downstream dispersion curves for certain trace metals were obtained from two mineralized areas in the southeastern U. S. In Lincoln Co., Georgia, 7 sample sets were collected downstream from the Magruder mine, a polymetallic sulfide deposit (Zn-Cu-Pb-Ag-Au) in metavolcanic rocks. Five sample sets were collected along Joe Mill Creek in Grainger Go., Tennessee, downstream from a zone of zinc mineralization in carbonate rocks (Mississippi Valley-type). In both areas, analyses were made of Fe-Mn oxide coatings on lithic fragments and quartz pebbles, and the -80 mesh fraction of the stream sediment. A comparison of the dispersion curves reveals the following: 1.) the anomaly/background ratio is markedly higher in the Fe-Mn oxide coatings for zinc and copper; 2.) the anomaly/background ratlo is markedly higher in the -80 mesh fraction for lead which is not concentrated in the coatings; and, 3.) the Zn/Mn and Cu/Mn ratios in the coatings are useful in that they enhance downstream derectability of mineralization as well as provide for a simpler analytical procedure. There are several potential advantages of using coatings vs. the conventional -80 mesh fraction in stream sediment surveys. Because soluble metal is brought into the stream mainly in groundwater, deeper anomaly sources may be detectable from the oxide coatings than from clastic fractions of alluvium where much of the metal is derived from erosion of soils. Variability due to sampling may also be reduced, providing better discrimination of anomalies. In areas of glacial or alluvial cover, coating surveys may be particularly applicable.

Jan 1, 1975

By Paul C. Schmall, Arthur B. Corwin, Hugh S. Lacy, Derek Maishman

For reasons of hydraulic design and constructability, water supply tunnel systems are often located relatively deep, in competent rock. Where the rock lies below a thick cover of water bearing soils, artificial ground freezing offers a low risk, cost-effective method of constructing access shafts. Several examples, in Kansas City, MO and in Brooklyn and Queens, NY, illustrate the use of freezing to provide structural support and ground water exclusion. In the case histories presented, the shafts range from 6m to 12m (20 to 40 ft) in diameter and soils vary from clays to boulder beds with depths in excess of 73m (240 ft) to competent bedrock. Where tunnels for infrastructure are designed to be driven in rock, vertical access may encounter a considerable thickness of overburden soils with groundwater. In such cases, shaft sinking problems are analogous to those confronted by mining engineers over 100 years ago. At that time, newly developed refrigeration machines were set to freeze the ground water and stabilize running sands. Although modern technology has refined our efforts, the basic features of the ground freezing to be described here are the same as those used in the last century. Vertical holes drilled on a circle surrounding the shaft site are equipped with leak-free steelpipes through which a refrigerated brine is circulated. In this manner, a frozen cylinder, seated in rock, is formed when the earth freezes between adjacent pipes. Shaft excavations take place inside a self-supporting, ground-water excluding structure. For mines, no better method of sinking production shafts through deepwater-bearing ground has yet been established. Indeed, major deposits of coal, potash, and salt would have remained inaccessible to this day were it not for the continued use of artificial ground freezing. If mine shaft freezing became relatively commonplace, early applications to civil engineering were few. Mussche and Waddington (1946) mention only five projects between 1892 and 1935; three of these relate to subway or vehicular tunnels in Paris, Antwerp, and (the most extensive) at five locations of the Moscow Metropolitan Railway development. In the United States, the method was used to spectacular effect in 1936, freezing about 3,000 cubic yards of silt to stop a slide

Jan 1, 1999

By Th. Petropulos

The Zn-Ag-Pb mineralization zone near Molai (Greece) was explored by more, than 60 drillholes. Promising results led to the decision of additional drillholes in order to confirm the expected spatial extension of the deposit. A multiobjective approach is described which optimizes the location of a set of 5 additional drillholes. The decision is based on estimation errors for grade, thickness and depth of the main ore bearing layer, with respect to cut-off values for grade and thickness. The linear combination of these variables defines a favorability index which is used for mapping optimal drillhole locations. The map shows several clusters of favorable cells. A declustrering algorithm is used to select a representative cell for drilling in each cluster.

Jan 1, 1989

By Omar A. Muhtadi

6.1 INTRODUCTION The three most critical factors in successful heap leaching operations are: • The methods employed to pretreat ore (i.e, crushing and agglomeration); • Placement of ore on the leach pad (heap building techniques); and • Wetting of the ore with cyanide (solution application techniques). Improper execution of any of these initial steps may result in a substantial sacrifice of total metal extraction or, in the worst case, in project failure. Ore preparation in terms of crushing and agglomeration was discussed in Chapter 5; this chapter therefore focuses on commonly employed techniques for heap construction and solution application. The main objective of heap construction is to obtain the most homogeneous heap possible. "Channeling" of leachate in heaps with preferential seepage paths leads to preferential leachate distribution and uneven/incomplete extraction. The two main contributing causes of channeling are inadequate attention to heap construction and uneven solution application. These pitfall s can best be avoided through a knowledge of the various techniques available and the applicability and success of these techniques with various ore types and site conditions. The remainder of this chapter provides a discussion on these two subjects. 6.2 HEAP BUILDING TECHNIQUES Successful heap building techniques vary with the type of ore and, since no two orebodies are exactly alike, some slight modifications are usually necessary for each specific project. However, it is possible to generalize in terms of the appropriate techniques to be used with ores having similar characteristics. This section discusses the three most commonly used methods of heap construction and provides some guidelines with regard to ore types, construction constraints, and lift height parameters for each of the three. 6.2.1 Run-of-Mine Dumping and Dozing The run-of-mine method of heap building can only be used with ore of a highly silicious nature (i.e., ore which will not generate a large amount of

Jan 1, 1988

By Werner A. Ruemmele

Eisenhower Memorial Tunnel, called Straight Creek Tunnel during construction is located 60 miles west of Denver, Colorado at 11, 160 ft. elevation. It is 8, 510 feet long, and carries two lanes of 1-70 traffic under the Continental Divide. This paper describes improvements and changes made in construction methods for utilities, concrete lining, ceiling, wall covering and paving to allow maximum offsite fabrication and activity overlap resulting in a one-year faster completion for traffic. The substantial changes proposed on a design-and-construct basis by the contractor and put into effect after State approval were: 1. Substitution of ductile iron and thick-wall P.V. C. pipes for clay pipes allowing placement and operation before hole-thru. 2. Outside pre-assembly of large rebar mats, using a novel tension-splice with cable clamps. 3. Arch concrete placement method modified to make 4, 322 ft. of lining in 10 weeks possible. 4. Safety barriers precast and epoxy coated offsite instead of cast-in-place and tile faced. 5. Prestressed hollow ceiling slabs with porcelainenamel coated steel sheets assembled offsite, instead of in-place glazed tile and in-place cast concrete ceiling. 6. Glazed tile wall panels 8 ft. long by 11 ft. high assembled off site and erected using vacuum pad mounted on special lift. 7. Asphalt paving while other work proceeded, instead of reinforced concrete slab and asphalt overlay. Work started in January 1968, but advance came to a one-year standstill for major structural redesign and negotiations of a new agreement during 1970. Using multiple drift construction followed by top-heading and bench excavation, it then progressed to hole-thru in July 1972. As a result of art 18-month overlap of activities the tunnel was opened for traffic only eight months later in March 1973. Gibbons and Reed Company of Salt Lake City, Utah sponsored the joint Venture of Al Johnson-Gibbons and Reed-Western Paving-Kemper during 1971, 1972, and 1973. The tunnel was the subject of a previous paper delivered at the RETC '72 in Chicago by R. C. Hopper, T. A. Lang, and A. A. Mathews, describing geology, unusually severe structural loading and multiple-drift tunnel excavation.

Jan 1, 1974

By A. D. S. Gillies

The provision of a suitable working environment in deep level mines requires the accurate prediction of the ventilation heat load. Mathematical models for predicting strata heat load have been under development since the 1930's and 1940's. Computer models for predicting this and other mine heat sources have been developed and refined over the last 20 years. Some empirical studies have occurred and there is an increased emphasis on the importance of underground studies. Any theoretically or empirically determined predictive method must of necessity make assumptions. Underground space with its irregular configurations and rough wall surfaces cannot be described by simple mathematical expressions. Some heat loads, such as machinery, may occur intermittently while others such as the influence of water evaporation are very difficult to quantify accurately. Current popular models for predicting mine heat load have been surveyed. In testing some of these it is often found that each estimates significantly different quantitative values for the expected load in a particular underground space under study. These differences are explained by the assumptions, simplifications and omissions implicit in each of these models. It would be easier to estimate conditions at any point if heat flow into mine air passageways could be described by simple equations with associated statistically-based confidence ranges. Use of probability distributions to indicate confidence ranges allows any heat level estimate to be expressed as a range of values with limits for maximum and minimum expected values. This approach allows many of the limitations of the popular predictive models to be overcome. A heat prediction method using this approach has been developed based on Monte Carlo simulation and tested on mine data from a number of operations. Heat flow levels which can be predicted by simple equations supported by probability distributions allow the engineer flexibility in adjusting a predictive model to the underground characteristics appropriate to the mine site under study. The influence of all heat sources present in the mine opening must be included. Prediction methods must be updated as mining systems and machinery change with time. Heat sources interact with one another and the system must therefore be understood in its entirety.

Jan 1, 1987

By K. Hanna

This paper describes a method to improve coal mine entry intersection design. The method considers the effect of in situ stresses, local geologic conditions, rock physical properties, and mining sequence. Development of the method is discussed, including the results of field instrumentation studies and numerical modeling investigations. Data required to evaluate the effects of roof span, mining sequence, entry orientation, and bolting patterns on intersection stability are also presented. Ground control studies conducted by the U.S. Bureau of Mines in two underground mines in the Illinois Coal Basin have shown that in situ horizontal stresses and roof geology have a critical effect on intersection stability. Methods to reduce the adverse effects of these parameters are emphasized. Typical failure behavior associated with specific geologic and horizontal stress conditions is' presented to illustrate proposed control methods to alleviate adverse ground conditions.

Jan 1, 1988

By D. R. East

The concept of sub-aerial tailings deposit.ion using a managed rotational deposition system to form a deposit of partly-saturated tails for North American conditions was introduced by Knight and described by Knight and Haile (1983). The application of the sub-aerial technique, together with continuous removal of all surface waters and underdrainage outflows from the Key Lake uranium mine I s tailing storage facility in Northern Saskatchewan, Canada, has been documented by Knight and Haile (1984). Since then, the concept is being applied in the United States to tailings facilities in California, Nevada, Arizona, Utah, Colorado, Idaho and South Dakota.

Jan 1, 1989

By Wolfgang R. Wawersik, Charles M. Stone

INTRODUCTION Hydraulic fracturing was applied in horizontal drill- holes in the Salado salt formation near Carlsbad, New Mexico. Tests were performed approximately 650 m be- low surface to validate the design of a Waste Isolation Pilot Plant (WIPP) for the disposal of radioactive waste from defense activities of the United States. Hydraulic fracturing was performed primarily to determine whether the virgin in situ stress state at the WIPP site is isotropic and whether the magnitude of the virgin in situ stresses corresponds to the weight of the overburden. Beyond these limited objectives, however, measurements are now being reviewed to evaluate the usefulness of hydraulic fracturing in salt formations in general. Such measurements are desirable to determine stresses induced by mining and to monitor time-dependent stress changes around underground excavations in salt masses. Hydraulic fracturing was chosen because it is the only technique that can be readily applied in virgin ground far from existing mine openings. The method also appeared to yield directly the magnitude of the least compressive principal stress, regardless of the mechanical properties of the rock mass. A knowledge of the least principal compression was deemed sufficient to establish the isotropic character of the virgin in situ stress field under two conditions: (1) the Salado formation was mechanically isotropic, i.e., the fracture toughness did not vary normal and parallel to bedding so as to permit preferred fracture paths, and (2) pressure measurements were combined with determinations of the orientations of hydraulic fractures and, more generally, with observations of the characteristic hydraulic fracture patterns. The latter was possible by locating the drillholes for hydraulic fracturing along the axes of drifts that were mined several months later. The success of general stress measurements by hy- draulic fracturing of salt subjected to anisotropic stress conditions was and remains less certain. While the smallest in situ compressive stresses should still be equal to instantaneous shut-in pressures, there may not exist any unique relationships between the greatest and intermediate in situ principal stresses on one hand and the primary breakdown and fracture reopening pressures on the other. This problem would be a consequence of stress relaxation due to salt creep around any drillhole in which hydraulic fracturing tests are conducted. Moreover, lab- oratory measurements suggest that creep and stress relaxation could be so rapid that it might not be possible to interpret the measurements for anisotropic stress conditions even if hydraulic fracturing were performed as soon after drilling as possible. The primary objectives of the stress measurements in the WIPP were met by combining hydraulic fracturing tests with finite element analyses of the effects of salt creep, observations of hydraulically induced fracture pat- terns, and laboratory hydraulic fracturing tests on oriented core. In situ hydraulic fracturing tests in long drillholes were preceded by several trial tests to establish the best test methods and to demonstrate that salt could be fractured. The resolution of anisotropic stresses and special problems, e.g., in the identification of instantaneous shut-in pressures, are currently being addressed in hydraulic fracturing tests in a mine pillar, in tests following different delays between drilling and fracturing, and in tests with different frac fluids. This paper will review the main results of the analyses above and of one group of hydraulic fracturing tests at different distances from existing excavations. The paper will conclude with a brief description of the geometry of the hydraulically induced fracture patterns. Because of space limitations, it will be assumed that the reader is familiar with hydraulic fracturing or will first consult other sources (e.g., Cleary, 1980; Gronseth and Detournay, 1979; Zoback and Haimson, 1983; Nemat-Nasser et al., 1983; Kim et al., 1984)

Jan 1, 1986

By D. A. Stanley

The Bureau of Mines has developed an equation which describes the dewatering of clay slurries with polyethylene oxide. This dewatering equation is An _ kC + b where n, k. and b are empirical constants and C is the concentration of polymer solution used for dewatering. The minimum amount of polymer required for dewatering. A is determined by titration of the clay slurry with a polymer solution. In this report, the dewatering equation is applied to data obtained for a polyacrylamide dewatering sequence. Fundamental similarities between the dewatering properties of clays and the viscosity of polymer solutions were observed. These similarities were explained by correlating an equation describing polymer configuration in solution with the dewatering equation. This correlation showed that amount of polymer required for dewatering and polymer solution viscosity are both consequences of the frictional interaction of entangled polymer coils.

Jan 1, 1989

By Rolland L. Blake

The Bureau of Mines is investigating the potential for in situ leach mining "(ISM) of gold and silver mineralization. This preliminary study examined samples from several types of deposits using light optical microscopy and the electron microprobe to characterize the ore and gangue minerals and their microscopic characteristics, including the spacial relations between the target minerals and likely natural fluid channelways. Low grade disseminated deposit types from the western U.S. were found to contain fracture-hosted or matrix-hosted gold and silver minerals, some of which are encapsulated by quartz or pyrite. Geologic features readily observed microscopically include ore and gangue mineral identity, size, and their association with each other and with fractures. Successful ISM application to gold and silver deposits needs this data to: (1) select the proper lixiviant based on chemical reactivity of the host rock, ore, and gangue minerals, (2) determine potential permeability characteristics when designing lixiviant flow patterns, and (3) understand potential problems of the lixiviant reaching encapsulated ore minerals. Careful examination of the geologic characteristics of each ore body is required because of the observed diversity of characteristics in deposits from the same "class" and even within the deposit itself.

Jan 1, 1989

By R. Spring

Artificial intelligence, and especially expert systems, are currently receiving considerable attention. Of interest to the control engineer is the utilization of these tools for real-time process control applications. To evaluate this technology, a real-time expert control system was implemented in one of the grinding circuits at Brenda Mines Ltd. The performance of this micro computer based expert system compared satisfactorily to the proven supervisory control system currently in use. The study confirmed the expectations that expert systems have potential for real-time, supervisory control of mineral processing operations.

Jan 1, 1989

The Witwatersrand reefs provide excellent examples of chemical and structural control on gold distribution. All mined gold appears to coma from a carbon -gold association and/or Fe-S-Au association, and also from immediately above or below unconformity surfaces. A total raliance on the current syngenetic model for Witwatersrand gold does not appear to be justified from the accumulated data and may be responsible for missed opportunities during exploration: consideration of other models is suggested especially where they better fit the data. The stratabound natura of Witwatersrand gold 1& critical to mining, but is emphasized in syngenetic models to the virtual exclusion of many other important observations. By analogy with other deposit types, stratabound character is probably a poor guide to genesis.

Jan 1, 1988

By M. I. M. Darwish

In this paper, an effort was made to get more in-sight about the parameters that can affect air sparging technique optimization. Numerical simulations were used in predicting the effects of different parameters utilizing Shell?s in house MoRes simulator. The case of using air sparging to remediate source zone is considered in this work. Different air injection scenarios using continuous and pulsed air injection techniques, with different frequencies and durations, were compared. The amount of MTBE mass removed from the saturated zone and arrived to the ground surface, through the vadose zone, was the main criterion while comparing different air injection scenarios. The simulations results showed that pulsed air injection is better than continuous air injection in removing the MTBE and that the longer the OFF time is the better the MTBE removal.

Jan 1, 2008

By M. R. Rosen

CARBINDER Polymer 498 is a liquid organic taconite binder which significantly improves fired compression in both fluxed and acid pellets. It has been used commercially in both shaft and straight grate furnaces. This new binder produces an unusual wicking phenomenon during balling wherein the rate of movement of interstitial water is accelerated to the surface of the balls. The phenomenon is proposed to be responsible for the significant improvement seen in fired compression. This paper presents information as to the effect of CARBINDER Polymer 498 on green ball and fired pellet properties. It also describes the wicking phenomenon and discusses a reversal in the normal balling operation procedures required for successful agglomeration.

Jan 1, 1988

Acid mine drainage (AMD) forms when sulfide minerals are exposed to oxidizing conditions in coal and metal mining, highway construction, and other large-scale excavations. Iron sulfides common in coal regions are predominately pyrite and marcasite (FeS2), but other metals may be complexed with sulfides forming chalcopyrite (CuFeS2), covellite (CuS), galena (PbS), and sphalerite (ZnS). Pyrite commonly occurs with these other metal sulfides thereby causing AMD where Cu, Pb, and Zn are mined. Upon exposure to water and oxygen, sulfide minerals oxidize to form acidic, sulfate-rich drainage. Metal concentrations in AMD depend on the type and quantity of sulfide minerals present. The drainage quality emanating from underground mines or backfills of surface mines is dependent on the acid-producing (sulfide) and alkaline (carbonate) minerals contained in the disturbed rock. In general, sulfide-rich and carbonate-poor materials produce acidic drainage. In contrast, alkaline-rich materials, even with significant sulfide concentrations, often produce alkaline conditions in water. Approximately 20,000 km of streams and rivers in the United States are degraded by AMD. About 90% of the AMD reaching streams originates in abandoned surface and deep mines. Since no company or individual claims responsibility for reclaiming abandoned mine lands (AML), no treatment of the AMD occurs and continual contamination of surface and groundwater resources results. The oxidation of iron disulfides and the generation of acidity occur through several reactions (Stumm and Morgan, 1970). The chemical equations can be found in Caruccio and Geidel (2000). If any of the processes represented by the equations were slowed or altogether stopped, the generation of AMD would also slow or cease. The equations show that 1000 Mg of rock containing 1% sulfur, all as pyrite, would yield upon complete reaction 31.25 Mg of acidity. Therefore, 31.25 Mg of 100% CaCO3 would be required to neutralize the acidity. The alkaline content of overburden determines whether there is enough neutralization potential (NP) to counteract the acid produced from pyrite oxidation. Of the many types of alkaline compounds present in rocks, only carbonates and clays occur in sufficient quantity to effectively neutalize AMD. A balance between the acid-producing potential and neutralizing capacity of an overburden sample will indicate the ultimate acidity or alkalinity that might be expected in the material upon complete weathering. Accurate prediction and control of AMD before surface mining require an understanding of three important factors: 1) overburden geochemistry, 2) method and precision of overburden handling and placement in the backfill during reclamation, and 3) the postmining hydrology of the site.

Jan 1, 2002

By J. G. Wargo

Disseminated gold deposits are the object of major search and development efforts by many mining companies throughout the world. The invention of more advanced equipment for open pit mining and and use of heap leaching methods, taken together with favorable gold prices has led to rising profits in the gold mining industry.

Jan 1, 1988

By L. Adler

Existing classifications of mining and construction equipment have had major deficiencies. They often lack organization, balance, and have remained obscure. Particularly when proceeding to great.er resolution these deficiencies have proven crippling. By adopting "Classes", "Groups" f "Types" and "Kinds" at successive degrees of refinement, a "Taxonomy" is developed based on clear visual differentiation or on a "Morphology??. This symbiotic application, adopted from the Biological Sciences, yields clear, simple and unambiguous results. Supporting this effort are guidelines for easily and credibly sketching equipment which are also distinctive. Numerous illustrative examples are provided. Communications are improved and the engineer obtains a confident feel for the equipment at hand.

Jan 1, 1989