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By C. Musingwini, A. S. Nhleko

"Since the Global Financial Crisis (GFC) in mid-2008, capital has been more difficult to access. Mining projects must contend with projects from other industries for scarce capital. A decision to invest available capital in mineral projects requires that valuation be conducted to assess the expected return on the projects. The discounted cash flow (DCF) analysis is generally applied for the valuation of mining projects, whereby future cash flows are discounted to present value using an appropriate discount rate. The discount rate significantly affects the outcome of a valuation. Economic and finance theory provides tools to calculate discount rates. The discount rate must account for factors such as the risk and stage of development of the mineral project; hence the appropriate discount rate to utilize in a project is often a subject of debate.The discount rate is the weighted sum of the cost of debt and equity. There are several methods for determining the cost of equity. This study considers the commonly applied Capital Asset Pricing Model (CAPM) and Gordon’s Wealth Growth Model because of their simplicity and availability of parameters required to estimate the cost of equity. This study explores how differences in the cost of equity obtained by these two methods can be explained for a mining environment. Data for empirical analysis were collected from the I-Net Bridge, McGregor BFA, and Bloomberg databases. It was found that Gordon’s Wealth Growth Model provides better estimates of the cost of equity compared to the CAPM under depressed market conditions. Therefore, this research recommends that Gordon’s Wealth Growth Model be used to estimate the discount rates for mining projects during periods of depressed market conditions."

Jan 1, 2016

The design/optimization of the pump and cyclones to maximize grinding circuit efficiency first requires a concise understanding of, and clearly defined specifications for, desired grinding circuit performance. Subsequently, the pump and cyclone performances that provide the desired grinding circuit performance can be defined. Once the performance requirements of each process unit are determined, selection of physical equipment parameters that will deliver those performances can be carried out. The Functional Performance Equation shows that there are two distinct efficiencies in closed circuit ball milling. One of these, ?Circuit Classification System Efficiency? (CSE), is the fraction of ?coarse? material inside the ball mill upon which grinding energy is deliberately expended, versus the remaining fraction of ?fines? or finished size material inside the mill, upon which grinding energy is wasted (on over-grinding). The role of the pump and cyclones is to maximize CSE, which is the desired grinding circuit performance. The obtainable, target CSE for any given circuit can be estimated, for example by referring to a plant data base of CSE?s. Design/optimization guidelines then allow us to specify the pump and cyclone performances that will achieve the target CSE. This paper outlines the step-by-step, systematic method of pump and cyclone selection which maximizes CSE. Numerous examples of its successful application are provided.

Jan 1, 2011

By L. A. Cramer

South African platinum mines produce the world?s majority of platinum metal that is used in autocatalysts and jewellery. As the platinum market is forecast to grow at healthy rates into the future, the South African producers, Anglo Platinum, Impala, Lonmin and Northam, are planning to expand in the next decade. Furthermore, a number of smaller producers who are accessing other mineral rights are entering the buoyant market. The South African platinum mines have traditionally exploited the Merensky Reef of the Bushveld Igneous Complex (BIC); however, the mining of this reef is reaching depths that require significant vertical shaft systems and costly refrigeration for access to the orebodies at deeper levels. In the past decade all of the producers have begun to mine the less attractive UG2 reef because of its cheaper mining costs. This UG2 reef contains significant quantities of chromite with typically a chrome-to-iron (Cr/Fe) ratio of 1.35. UG2 ores can contain between 10 and 25% Cr2O3dependingupon the reef width and the selected mining method. It is relatively cheap and easy to extract a portion of the chromite from a platinum concentrator tailings stream at a grade of between 40?42% Cr2O3. However, it is only in recent years that some ferrochrome producers have begun to source some of their chromite from the tailings of platinum producers. South Africa is also the world?s largest single producer of ferrochrome and supplies much of the world?s stainless steel producers and thus the growing market for their product. As the traditional sources of high Cr/Fe ratio ores have been depleted at the shallow economic depths and thus have become more expensive sources of chromite, technical developments have improved the ability to use fine chromite economically to make acceptable grades of ferrochrome. Thus UG2 fines are now becoming possible cheap sources of acceptable feed to the ferrochrome industry. The abundance of feedstock for ferrochrome production and the lessening dependence on mined material will impact upon the structure of the ferrochrome business in South Africa. With continued platinum mining from UG2 reefs, South Africa is set to remain highly competitive in the world?s ferrochrome/stainless steel industry.

Jan 1, 2004

By S D. C Rabone

An elongate belt containing granodiorite stocks with associated stockwork molybdenum mineralisation in west Nelson is correlated with the I-type Separation Point Suite of mid Cretaceous age. Trace element characteristics of the 'Mo-granites', and the Separation Point Batholith strongly suggest a primitive, subcrustal origin for these granitoids, by partial melting of oceanic basaltic crust or upper mantle material in a subduction zone. They were emplaced in the upper crust without undergoing significant differentiation or contamination by sialic crust. Molybdenum, which is at levels of approximately 5 ppm in unaltered granite, is not significantly reduced in altered (but unmineralised) granite. This suggests the metallisation has a magmatic, subcrustal source and is not derived by hydrothermal leaching of upper crustal rocks or the granitic host rocks. Geochemistry of the 'Mo-granite' belt, in particular low K2O, calc-alkali to calcic Peacock Index, high Sr and TiO2, and low Rb, Nb and F, suggest classification as calcic granitoids similar to those which host porphyry copper deposits, indicating grades of mineralisation are likely to be low.

Jan 1, 1987

IN concentrating mills, where several millerals are recovered for realisation in more than one product, various systems are used to express the relative economic value of the work done, and, in the hope that it may prove of use to other operators, the writer will describe a system which, in his opinion, is more complete than any other that he has seen published.The controlling factor in all mill work must be based on the economic result represented by the greatest margin possible between the realizable value of the products and the cost of obtaining same.From a mill-man's point of view these are affected by the following factors:1. Metal contents of ore.2. Grade of products.3. Recoveries.4. Working costs.The grade of ore milled is usually outside the mill-man's control, but this may exercise a considerable influence on the grade of his products, metal recoveries, and revenue per ton of ore. Higher grades or recoveries may be obtained by using a more expensive process, or by additional grinding or reagents, and the economic comparison can only be arrived at by obtaining an analysis showing the monetary value of each variation within the possible limits.In the system to be described, the value of unit variations of metal contents of the ore, grade of products and recoveries are calculated in terms of a monetary unit per ton of ore with the returning charges ruling, and any suitable metal prices. To do this it is necessary to assume what, for convenience, is termed a "standard" set of results from the mill, preferably representing about average conditions, and having calculated the effect of unit...

Jan 1, 1931

By A. B. Cecala

Over the past decade, a substantial effort has been made to improve the air quality inside enclosed cabs of both underground and surface mobile mining equipment to reduce respirable dust exposures to the equipment operators. As part of this effort, the National Institute for Occupational Safety and Health, (NIOSH) completed a comprehensive laboratory study which determined the significant factors for cab filtration and pressurization systems. From this information, a major underground mining equipment manufacturer designed a filtration and pressurization system which was incorporated into the enclosed cabs of its equipment. A long-term evaluation was performed on the effectiveness of this filtration and pressurization system to improve the air quality in the enclosed cabs of two different pieces of equipment, being a face drill and a roof-bolter machine, at an underground limestone mine. This long-term evaluation demonstrated a significant reduction in dust levels comparing outside to inside cab respirable dust concentrations. During this evaluation, a modification to remove one of the filters on the roof-bolter machine simplified the design without sacrificing the system?s efficiency. Testing using particle count instruments performed during non-production time periods on both pieces of equipment indicated Protection Factors greater than 100 when comparing respirable-sized dust particles inside the enclosed cab relative to outside.

Jan 1, 2012

Continued market pressure on the US coal industry was the overriding factor affecting developments in underground mining in 1986. An oversupply of coal in the spot market kept prices low throughout the year and caused a number of operations to close their doors. Operators stepped up their efforts to improve productivity at existing operations. They made technology advances and improved their relations with employees. A continuing market-related development during 1986 was the divesting of coal properties and operations by major oil companies, which were faced with economic pressures in both the oil and coal industries. Further increases in contract mining production resulted as some larger operators were unable to compete in a tough economic environment. Longwall mining is still seen by many as the technology that will provide the necessary productivity to remain cost-effective. But the number of active faces in the US declined in 1986, as reserves were depleted and economics forced some closures. At the first Longwall USA meeting in June, much attention was placed on improved technology, as electro-hydraulic controls for roof supports gained acceptance. Other recent developments include shearer initiation of roof supports, automatic horizon control for shearer drums, and collection and storage of machine data for predicting maintenance requirements. The government and academic communities continued their research on dust control at longwall faces. Jankowski, Kissel, and Daniel, (October 1986, Mining Engineering), gave an overview of progress in longwall dust control. And Mukherjee, Singh and Jayarman (November 1986, Mining Engineering), recommended design guidelines for improving water spray systems for dust control. Surface subsidence Increasing attention is being given to surface subsidence. This is primarily because of longwall mining and the Surface Mining Control and Reclamation Act. Improved methods of prediction of surface subsidence, especially computerized methods, are being continually developed. Mining engineering faculty at major universities such as Virginia are helping develop public policy and regulations concerning subsidence. As part of this effort, Unrug and Johnson identified major subsidence areas of Western Kentucky. Peng and Chen (February 1986, Mining Engineering), gave an overview of history and research of surface subsidence. And Elifrits and Aughenbaugh, (February 1986, Mining Engineering), discussed effects of moisture variations and overburden on subsidence. This research culminated in a Symposium on Surface Subsi¬dence at the SME 1986 Fall Meeting in St. Louis and the 2nd Workshop on Surface Subsidence at West Virginia University. Ground control in coal mining continued to be an item of major research interest. Some 30 papers were presented at the 5th International Conference on Ground Control in Mining at West Virginia University. And six sessions were related to coal mining at the 27th US Symposium on Rock Mechanics at the University of Alabama. At the 4th Annual Workshop, Generic Mineral Technology Center, Mine Systems Design and Ground Control emphasized efforts of the participating universities to improve ground control. Peng and Chiang summarized results of studying support capacity and roof behavior with longwall shield supports. And Unrug, Johnson, and Nandy analyzed the process of deterioration of shale roof in a case study of a room-and-pillar coal mine. The importance of geologic conditions in determining mining productivity is receiving increased attention in coal mine design in the US. Mullenex related, through case studies, the benefits to be derived through analyzing the depositional system of coalbeds as an integral part of mine design. Improved technology in this area was related by Lloyd, Semborski, and Stolarczyk. They discussed a case study of using radio imaging to indicate coal-seam discontinuities in advance of mining. Improved coal mining technology in general is being researched more heavily, to help improve US coal competitiveness. However, much of this research and development process has yet to be widely implemented. Equipment manufacturers are devoting more resources to development of continuous-haulage systems, mobile roof-supports, mine-monitoring systems, and predictive-maintenance systems using computers to extract machine data.

Jan 5, 1987

By James J. Snodgrass

The Bureau of Mines has investigated vibration levels produced by blasting at four underground sites to establish how such factors as type of explosive, delay blasting, charge weight, and geology affect amplitudes of ground motion. A summary of the work is presented and the results of further analysis of the data are discussed. Square root scaling was found applicable to two of the underground sites and could be applied with minor error to all the sites. Comparison of empirical propagation equations in the different rock types indicates that although the site effect is apparent, the combined data may be used as a basis for engineering estimates of vibration amplitudes from subsurface blasting in many different rock types. Recommendations for predicting and minimizing vibration amplitudes from underground blasts are given.

Jan 1, 1974

By E. J. Ripling, M. W. Toaz

Tensile tests were conducted on pure magnesium and on four commercial alloys over a variety of temperatures and strain rates. The high positive slope of the ductility vs testing temperature curves that is found over a short range of testing temperatures for these materaturerials was shown to result from the fact that the microstructure was not stable at these testing temperatures. Pure magnesium did not display a transition temperature, although its sub-room temperature ductility was low. This poor ductility resulted from a grain boundary weakness. The aluminum-bearing commercial magnesium alloys had a higher ductility than the pure magnesium. ness.Thealuminum-bearingcommercialThese alloys did exhibit a transition temperature and grain boundaries that were stronger than the grain material. Both pure magnesium and the commercial alloys began initiating cracks at strains equal to one half of their fracture strain. MAGNESIUM base alloys' enormous potential as structural materials lies in their high strength to weight ratios. At present, the high strength magnesium base alloys such as AZ-80, which will be discussed later, have about as high a tensile strength to specific gravity ratio as the highest strength wrought aluminum alloy, 75s-T6, and, of course, a much higher strength to weight ratio than structural steel. Further, since the magnesium base alloys develop their high strength to weight ratios with moderate strengths and extremely light weights, the ratio of load carrying capacity to the weight of many structures is relatively higher for the magnesium base alloys than their strength to weight ratios would indicate. This results because judicious increases in section size, such as increasing the depth of bending members or adding reinforcing ribs, can frequently increase the weight of a structure linearly while the strength and stiffness increase as the second or third power of the added weight. Strength and rigidity must be designed into lightweight structures by those techniques which establish multiaxial stress states. Consequently, strong, lightweight structures frequently also possess a greater propensity toward brittle failures. In order to insure against these catastrophic failures, an extra premium must be placed on ductility and toughness in light alloys. Current knowledge of the ductility and toughness behaviors—notched behaviors—of magnesium base alloys is limited.* Most of the magnesium base alloys * The state of present knowledge regarding the effect of testing temperature on mechanical properties has recently been summar-ized by Pritchard.' crystallize in the hexagonal system, so that they are expected to exhibit a tough and ductile to brittle transition temperature. Actually, a transition temperature behavior has been reported for commercially pure magnesium in the literature, but the characteristics of this transition temperatureh uggest that it may not be a transition in the usual meaning, but simply the onset of some thermal softening, a performance much like that which face-centered-cubic lead might exhibit slightly below room temperature. If transition temperatures do exist, such important questions as the manner in which they are affected by internal variables such as chemical composition and grain size, or the effect of external variables such as rate of straining or notch severity have never been investigated. The investigation reported upon herein was undertaken in order to define some of the mechanical behaviors of the magnesium base alloys better, to gain a better understanding of the influence of some of the above listed variables, and particularly to understand their effect on ductility and toughness better. Material and Procedure Material-—Pure magnesium and four commercial alloys were used in this investigation. The alloys were selected so that chemically they made up a series with approximately the same minor alloying

Jan 1, 1957

By Juan P. Camus

Mining is one of the oldest industrial activities. Its products are essential to modern civilization. Paradoxically, and despite a deep-rooted belief to the contrary, mining is not a lucrative industry— at least not in the aggregate. This assertion is true not only for recent years, one of the weakest periods in terms of metal prices, but also for a long time past. In 1776,Adam Smith said in The Wealth of Nations: “Of all those expensive and uncertain projects, how-ever, which bring bankruptcy upon the greater part of the people who engage in them, there is none perhaps more perfectly ruinous than the search after ... mines. It is perhaps the most disadvantageous lottery in the world... Projects of mining, instead of replacing the capital employed in them, ... commonly absorb both capital and profits.”

Jan 1, 2002

By R Adofo

Underpinning the mining process is a continuum of prediction, specifically of tonnes, grade and recovery from exploration to grade control, through short-term mine design, to mining and processing. The interdependence of one activity on the other is so strong that it can be difficult to partition the activities and determine where there are issues, if any. Reconciliation is the process that compares the predictions of the various estimates to the actual product produced at the end of the production chain. Quite often, an attempt to understand the variances from one measuring point to the other creates a ‘wicked problem’.This study outlines the benefits of incorporating the principles of ‘systems thinking’ into the mining reconciliation process, by constructing a framework within which reconciliation is effectively managed. The philosophical base for any variances between successive links in the reconciliation chain cannot be attributed purely to the statistical variance between the predicted and the actual grades achieved, but should include the interrelationships between the technical and managerial professionals involved. Systems thinking, as an interdisciplinary approach, draws its ideas and concepts from a variety of disciplines, and in so doing can exploit their different strengths.The study described in this paper offers methodologies to analyse the task, in advance of developing a technical solution. Two systems thinking methodologies, Grounded Theory (GT) and Soft Systems Methodology (SSM) were employed. These methodologies, are geared towards dealing with relationships and interactions between individual parts and the whole. The GT coding in the study specified that the key activity that would drive the reconciliation process is through an effective reconciliation meeting, and the competencies of a ‘reconciliation team member’ This team member should be a good communicator and enjoy challenges, be open-minded and transparent, and have a broad perspective of the mining process and relationships across the different activities.CITATION:Adofo, R, 2017. A systemic approach to managing the Mine to Mill reconciliation process, in Proceedings Tenth International Mining Geology Conference 2017, pp 95–102 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 20, 2017

By Paul Hatmaker

"The Bureau of Mines recently has issued a general information circular covering briefly the origin and occurrence, properties, uses, exploitation, and marketing of diatomite. Since this publication was prepared, additional information has become available regarding one of the newer uses of diatomite — that as a filler in battery boxes. As this market is rapidly becoming one of the important outlets, a brief discussion of such use may be of interest.Diatomite is a mineral substance composed principally of the skeletal remains of diatoms. The skeletons of these microscopic flowerless water plants are made from silica present in the water in which these tiny plants live. The minute shells or ""casts"" accumu¬late in the bottom of lakes, ponds, or inland seas, and eventually become more or less consolidated into beds of diatomite.The uses of diatomite depend largely upon its peculiar properties. Diatomite is a highly porous substance and possesses marked absorptive powers. The large percentage of pore space makes the material very light in weight. It is relatively insoluble in most solutions.The largest deposits in the world are found in California, but diatomite occurs in many other Western States and also is found in a number of places along the Atlantic seaboard. Outside of the United States diatomite occurs in many countries; Algeria and Germany are among the largest producers.Usually diatomite is mined either by underground or open—cut methods. In some instances it may be dredged from lake and swamp bottoms. It must be dried prior to grinding or other preparation for market, and for many purposes must undergo a complex sizing and grading system for removal of such impurities as sand and clay and for classification of the material to the various sizes desired,"

Mar 1, 1931

By Tom Szaraz

Part of a major sewer expansion for the City of Columbus, Ohio. The Big Walnut Outfall Augmentation Sewer?Part II (BWOAS) consists of 13,200 feet of tunnel of 12-foot tunnel passing mainly through glacial deposits with a water head of up to 2 bar. A Lovat RME167SE was used to drive this tunnel with steel fiber reinforced precast segmental liner used for support. This paper will discuss the concepts for tunnel sup-port and TBM selection, the problems encountered with the TBM sealing systems and the solutions used to repair the machine.

By Williams K. C

This paper presents a brief account of the plant which has been developed at Port Pirie to recover, by vacuum distillation, the greater part of the zinc content of desilverized lead. The present plant is an experimental unit, which is run in conjunction with the normal refinery practice, but can be cut out of the circuit. It will shortly be dismantled and duplicate units will be built on the sites chosen for the final plant installation.The unit described here has treated flows of 16 to 37 tons per hour of desilverized lead, to recover 90 to 95 per cent of the zinc contained in it. It is not intended here to detail all aspects of the vacuum dezincing operation, nor the developments which precededthe adoption of this design. The essential features of the present plant will be described and, where these are peculiar to the present experimental location, the intended alteration for the final plant will also be mentioned. OUTLINE OF PLANT AND PROCESSLead issues from the continuous desilverizing kettle at about 350° C. containing about 0·57 per cent Zn. It is conveyed by a tiled launder to the preheater, where it is heated to 580-620° C.Hot lead from the preheater enters the vacuum vessel via a barometric leg. From a reservoir holding about 19 tons of lead it falls by gravity in a thin film exposed to high vacuum (20-50 microns)3 and leaves the vessel via a barometric leg, entering the lead pot. The lead leaves this pot at 540-560° C., containing 0·03 to 0·06 per cent Zn, which is removed, together with residual antimony of 0.02 to 0·06 per cent, by a separate final refining process.

Jan 1, 1956

By Christopher B. Kapes

To reduce concentrate dewatering and drying costs, the Concentrator Division at Phelps Dodge Morenci, Inc. investigated available filtration technologies. Numerous methods were explored, including: drum, disk, belt, pressure, hyperbaric, and ceramic media filtration. An economic evaluation of the individual filtration technologies indicated the advantages of ceramic media filtration for Morenci concentrates. This paper discusses the technological development culminating in the first full scale application of ceramic media disk filters in North America. Low moisture contents are obtained at high production rates and greatly reduced operating costs.

Jan 1, 1994

By Michael Arnold, Jonathan Delgado

In 2017, Bauer Foundation Corp. (BFC) was awarded the contract to install the deep foundations for the new 17-story Hotel Tower and the Low Rise Casino Expansion at the Seminole Hard Rock Hotel and Casino in Tampa, Florida. The site was underlain by extremely challenging Florida Limestone geology and surrounded by occupied existing buildings and infrastructure. To overcome the challenges of the difficult subsurface conditions, and to successfully complete the foundation installation without impact to the surrounding buildings and casino operation, Langan Engineering (EOR) and BFC were required to modify both the design and installation techniques during construction. The scope of work included 147 temporarily cased drilled shafts to depths up to 230 ft (70 m) below ground surface (BGS), 76 permanently cased micropiles up to 200 ft (61 m) BGS, and more than 300 augered-cast-in-place (ACIP) piles up to 125 ft (38 m) BGS. Voids and zones of high permeability in the limestone created many challenges for execution of the foundation scope including ACIP piles overbreaks of more than 400% above neatline volume, and construction induced ground subsidence/collapses adjacent to structures supported on shallow foundations. This paper will discuss site limitations, design and construction challenges, difficult geology, varied soil conditions, and lessons learned. PROJECT The project is located at Seminole Hard Rock Hotel and Casino Tampa, Florida, as shown in Fig. 1. Seminole Tribe, the owner, started the construction of a new 17-story Hotel Tower and the Low-Rise Casino Expansion at the beginning of 2017.

Jan 1, 2018

By Richard Pizzi

Built in 1806, Boston's African Meeting House is the oldest surviving Black church building in the country. A $7 million dollar renovation was begun in 2006 to restore this historic building to its 1855 appearance and to modernize the building's accessibility, electrical and mechanical systems. As part of the restoration, an underground utility room and elevator tower, needed to provide handicap access to the Meeting House, were constructed. Extending up to 17 feet below the foundations of the abutting buildings, the utility room was constructed within one foot of some of Boston's oldest and most expensive residences. All equipment and materials had to enter the work area through a narrow alley rendering conventional methods of excavation and construction of earth support using heavy equipment unfeasible. A unique combination of micropiles, structural cap beam, internal struts and shotcrete facing was designed and constructed to provide the permanent and temporary support of the lateral loads from the earth pressures and adjacent building surcharges and the vertical loads from the elevator tower. The narrow and congested streets of the Beacon Hill neighborhood presented many day-to-day challenges for the contractor.

Jan 1, 2011

By B. W. Madsen

To help maintain an adequate supply of minerals to meet national economic and strategic needs, the Bureau of Mines developed a mathematical model that describes acidic ferric sulfate leaching of copper from sulfide ores. The leaching model can aid in maximizing minerals and metals recovery from primary sources by giving operators and management a better understanding of the copper leaching process. This will aid in improving dump leaching operations. The model is based on a steady-state approximation of the continuity equation for diffusion of ferric ions in the rock pores and the intrinsic leaching kinetics of the various sulfide mineral particles. Ore characteristics included in the model were ore particle-size distribution, particle shape, grade, mineral content, mineral particle size, porosity, and tortuosity. The continuity equation was used with ferric ion concentration gradients and a fixed value for the diffusion coefficient. Except for effective diffusivity, each of these factors was either measured experimentally or estimated from theoretical considerations. The effective diffusivities were determined by fitting calculated leaching curves with experimental leaching data. Vertical variations in leach solution composition and temperature within a dump are not considered in this model. The model accurately predicted copper extractions for several large-scale tests during nearly 500 days of leaching.

Jan 1, 1981

During the past Two years in reef gold mining, "indicators" have received great attention at the hands at the Victorian gold seekers. Many years ago, what was caned the" indicator lode," was struck in Ballarat East, on the course of which extremely rich deposits of gold were discovered but as to its being a .qeneral experience in reefs or leaders no one ever dreamed. Now, however, we find that these "indicators" are frequently to be met with, though they differ very much in different localities, making it, therefore, a difficult matter for other than a careful minel' to follow them. The necessity of following "indicators" for the purpose of developing gold is now recognized, and the policy of following them up has been attended with much success in this field. In the case of Messrs Shaw and Sons, at Wedderburn, those gentlemen began to work on an "indicator" here five years ago, and immediately thereafter more by accident than anything else they being at that time inexperienced as regards "indicators " came upon gold bearing quartz, which continued payable so long as the" indicator" aud the stone were in conjunction with each other, but as soon as they parted company the stone ceasedto be of any value then, by following the" indicator," as the latter intersected fresh bodies of stone they proved again more or less payable, until a fortnight or so ago the Messrs. Shaw turned out 4 tons of stone, which yielded £1,825, with also profitable workingup to the present moment. Where they are now working is a mile north of their original find thus proving that "indicators" travel considerable distances and have something to do with the gold deposits found in reefs. On the direct course of Shaw's "indicator," as high as hundreds of ozs to the ton was obtained from the stone but, just a few inches from either side in the same" leader," not a colour could be got. Whatever the cause-whether by electricity or some unknown force in nature-the gold is found on the course of these" indicators" and nowhere else, and-as each of the Victorian Government Geologists admit-their value to the gold-seeker as a means of leading to' gold cannot be over-estimated.

By J. R. Cole-Baker

An independent technical audit by a consultant is part of the accountability process of publicly owned or publicly quoted companies when raising finance through share issues or loans or the sale of equity, and of banks or development funds when granting loans. Africa is undergoing a renaissance in investment in its mining industry. It is forecast that capital investment, in major mining projects in Africa, will be over US$ 4.4 billion, in the next few years. Most, if not all, of the capital to be raised will require an independent technical audit. The aim of this paper is to assist the management of mining companies seeking finance in appreciating the role of such technical audits. The reasons for such audits, especially to attract international investment, are listed. The role of the audit is explained in assessing the underlying robustness of the company as ?a going concern? and the viability of any ?expansion plans?. Its use is emphasised in establishing the underlying value of the company based on the mine life as supported by the mineral reserves. The independent consultant role is stressed as a representative of the parties in a finance deal who cannot, in practice, carry out their own detailed and specialized technical due diligence. The various components of a typical audit are examined with examples of critical matters which may require resolution. The definitions, which are used commonly in audits, in respect of competence and reserves and resources, as stated by various regulatory bodies, are compared.

Jan 1, 1998