Search Documents

By D Espinoza, I Rees, J Pocoe, P Collier

P Collier, I Rees, J Pocoe and D Espinoza

Mar 22, 2022

In a modern economy there is a compelling case why governments should not own property rights to mineral deposits. Assuming they do, however, governments will use these constitutional rights to raise revenue. They have two basic instruments to achieve this; a royalty charge on price or a rent tax on income/profits. On the one hand, a royalty charge creates a 'deadweight loss' to society by increasing cut-off grades and decreasing the life-of-mine. They are also regressive. However, they are easy to administer. On the other hand, a rent tax avoids the problem of 'deadweight loss'; it does not impact on the life-of-mine because the tax structure is neutral. But, they are difficult to administer correctly, particularly in the determination of rents and the definition of mining per se. If rents are incorrectly determined capital markets are distorted. And, if mining activities are incorrectly defined, downstream activities could be adversely affected.

Jun 1, 2010

By Stone. Jon P.

INTRODUCTION Countries that are currently developing their mineral potential have unique information systems requirements to support these activities. The mining laws usually grant the State considerable authority over the process. In many instances, the mining laws give a government agency the responsibility for granting and controlling exploration permits and development concessions. This is the case in Costa Rica. The Direcion of Geologia, Minas, y Hidrocarburos (DGMH) of the Ministerio de Industria, Energia y Minas (MIEM) is responsible for the management and operation of the National Mining Register. This paper describes the results of two studies of the information system requirements to support the National Mining Registry as well as those supporting some of the other function of the DGMH. The first of the studies reviewed the situation before the installation of computer equipment. The second study evaluated the installed systems. BACKGROUND Historical Perspective Mining in Costa Rica is at present a relatively minor part of the economy. It consists primarily of industrial minerals and gold production. Gold production is largely by small-scale miners and may be more substantial than reported. There is considerable interest on the part of the Government in both having a better understanding of the existing mining industry and promoting future development. Mining law was first provided by the Ordinanza de Mineral (of 1830). This was replaced by the first Mining Code of 1953. Apparently, one of the first problems caused by the 1953 law was the granting of concessions which were not worked. A 1968 agreement with ALCOA also resulted in political conflict. The Government worked on a new Mining Code for many years and in 1982 the current Mining Code was enacted. Draft implementing regulations were prepared in April 1984. Mining Code of 1982 The Mining Code of 1982 addresses most aspects of mining in Costa Rica including the declaration that all mineral resources are to be the property of the State. The State may grant exploration permits and exploitation permits. The exploitation of hydrocarbons, radioactive minerals and certain water resources was reserved to the state. The DGMH was given authority to settle placer claim disputes, maintain a registry of exploration permits, and exploitation concessions. and generally supervise mining activity. Towards this, the Mining Code of 1982 includes rather detailed requirements for the processing of application for permits and concessions. Mining Code Application Requirements The following briefly describes the requirements to give the reader a feeling for the complexity of the process. Currently, over 1,000 active applications, exploration permits and exploitation concessions are being monitored under the process. The number remains relatively consistent in that the number of new applications is usually about the same as the applications that are put aside. The time and date of the filing must be certified by the DGMH. The application must include all the information specified in the Mining Code. If incomplete, DGMH must notify the applicant of the deficiencies or omissions and direct that the applicant correct the deficiencies or omissions within 8 business days (a single 30 business-day extension is allowable). If the applicant does not respond as directed, the application is deemed as not having been filed and the pertinent information is placed in the files. The DGMH must reject the application outright and direct it be placed in the files in the following cases: (a). If the new application covers the area of a previous permit or concession, either being processed or already granted.

Jan 1, 1987

By F. T. Cawood

The distinction between real estate ownership and that of interests in the property is fundamental to the appraisal of mineral properties. This distinction affects the nature and understanding of security of tenure and, consequently, the perception of what constitutes fair value. Legal matters are a particular concern because of their influence on security of tenure, ownership definition and use restrictions. The dynamics of the market and the complex interrelationships between the factors of production define value at a specific point in time for the bundle of rights, interests and assets that constitute a mineral property. Because each mineral property is unique, physically immobile and of a wasting nature, its usefulness to its owner and society must be optimized. The US Appraisal Institute (2001) classified the forces that affect land use as the cultural, political and economic attitudes of society. These forces culminate in laws that often dictate the purposes for doing appraisals. Once the legal definition of the asset is understood, valuers can decide on the valuation process that will support the final valuation approach.

Jan 1, 2004

By G J. A Dewar

The Australian Corporations Law generally requires Independent Expert Reports to be presented in support of capital raising or in defence of mergers and takeovers. The introduction of the VALMIN Code in 1995 (and its recent revision issued as the VALMIN Code, 1998) made Assessment and Valuation Reports in these circumstances much more comprehensible than before because of its key requirements for transparency and materiality. By forcing the Independent Valuer to provide an explanation of the reasoning behind the estimation of a particular resource asset, VALMIN allows the reader to clearly see any error or illogicality in the valuation methodology used and to seriously question or even reject the resulting value. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Independent resource asset Valuers are the essential link between mineral explorers/miners on the one hand and brokers/analysts/fund managers/investors on the other. The minerals and financial industries both expect them to not use inappropriate or invalid valuation methods and illogical steps within these methods. This paper examines some of the less sensible ways in which some of the main techniques that Valuers commonly use to assess the fair market value of mineral properties have been applied in recent instances. The authors hope to discourage the adoption or perpetration of the æWhat-number-did-you-have-in-mind?' approach. It is MINVALÆs view that as many methods as possible should be used in any resource asset valuation. If any of the resulting estimates are in approximate agreement (particularly if they were derived using the less subjective of the available methods), ie if they cluster, they are probably more persuasive as being the Preferred Value of the asset than outlier values within the Valuation Range.

Jan 1, 1999

By Willard C. Lacy

A mining operation begins with prospecting and exploration-stages with long periods of investment and high risk of failure. However, success in exploration ultimately determines survival of the mining industry. Prospecting and exploration may discover evidence of a mineral occurrence and outline its size and character, but ore deposits that support mining are "made" through the collective efforts of project geologists, geophysicists, geochemists, metallurgists, engineers, chemists, lawyers, and even politicians (Joralemon, 1975). Some deposits may go through multiple cycles of rejection and recommendation, discovery and development, decline and abandonment, rediscovery and development, etc., as economic, technological, or political conditions change or geologic understanding is improved. Peters (1987, p. 233) graphically illustrates the normal life cycle of a mine and the position of exploration in the cycle (Fig. 4.0.1). During the past fifty years, mineral exploration has evolved from comparing evidence of mineralization of prospects with that of known deposits to a more quantitative science employing many facets of geochemistry, geophysics, multispectral sensing from space, computer data storage, analysis, modeling, and most importantly, a better understanding of ore genesis. This modem approach to exploration began in the late 1940s and continues to develop. Exploration efforts peaked in the 1960s with emphasis upon the search for porphyry copper deposits, Mississippi Valley lead-zinc deposits, and volcanogenic massive sulfide copper-lead-zinc deposits. It peaked again in the middle and late 1980s with emphasis upon micron-size disseminated gold and epithermal and stratiform precious metal deposits.

Jan 1, 2008

By R. P. Viljoen, A. D. Scheglov, A. L. Sokolov

"Abstract -The distribution of mineralized provinces is analyzed on the basis of their genetic link with specific blocks of the earth's crust including ancient platforms, mobile belts and zones of tectonic­ magmatic activation. Mobile and fold belts surround the Siberian platform in Russia and the Kaapvaal craton in South Africa, with decreasing age zoning away from ancient platform margins. The main differences in the geological development of the two cratonic areas are: (1) the long period before the final stabilization of the Siberian platform (3600 Ma to 1600 Ma) and the comparatively short period of time for the stabilization of the Kaapvaal craton (3600 Ma to 3050 Ma) and (2) the intensive multiple activation of the marginal zones of the Siberian platform and the tectonically­ controlled, magmatic sedimentary, intracratonic activity, typical of the Kaapvaal craton. Mineralization of the Siberian platform is largely characterized by marginal reactivation zones of differing ages although mineralized intracratonic Cu-bearing basins of Proterozoic age are also known. Mineralization of the Kaapvaal craton is mainly related to the formation of the intracratonic basins i.e., Witwatersrand (Au, U) and Transvaal (Au). The latter is characterized by multi-age volcanic-intrusive activity including the emplacement of Bushveld Complex (Cu, Ni, Pt, Cr, Au, V). The Siberian platform is characterized by the prolonged development of inherited mineralization from Archean until the late Mesozoic. The main period of mineralization in the Kaapvaal craton is restricted to the middle Proterozoic.The Baykal-Patomskaya and Namaqua-Natal mobile zones occupy similar positions adjacent to the Siberian and Kaapvaal cratons, respectively, and demonstrate similar modes of metallogenic development: i.e., the early formation of exhalative Pb-Zn-Cu deposits during the early stage and magmatic Cu deposits during the late stage. The more remote mobile belt near the Siberian plat­ form, the Trans-Baykal, is characterized by intensive multi-age mineralization (Wo, Mo, Sn, fluorite), related to a period of tectonic-magmatic activation. The Saldania Belt occupies a similar position near the Kaapvaal craton but is known for its poor Au, and Cu rnineralization. lt does, however, have some similarities with Trans-Baykal Belt in regard to Mo-W bearing granitoids.The phenomenon of interference of geosynclinal, orogenic, platform, and tectono-magmatic activation regimes is known for the Russian section of the Pacific Ocean Volcanic Belt."

Jan 1, 1994

By C. E. Larson

Man's use of 'glass predates recorded history. Although early man had no knowledge of how to form glass, artifacts have been found near naturally occurring glass formations where molten rock had been rapidly cooled. In areas where volcanic activity is evident, primitive people fortunate enough to have lived in that area used the naturally formed glass to make arrow heads, knife blades, tools and ornaments. These glass artifacts have been found all over the world. In fact in todays modern society there are recorded cases of aboriginal tribesmen in Australia fabricating arrowheads from glass bottles. 2. A Brief History of Glass The first evidence of man made glass were beads made around 2500 BC by the Egyptians. The Mesopotamians also made glass beads at about the same time.

Jan 1, 1986

By E. C. Watkins

The fiber glass industry is an industry that. hopefully is still in its infancy and far from a mature business. Fiber glass, as will be discussed in this paper, deals with continuous strand glass as used in the textile laminate and reinforced plastics industries. More specifically, we are speaking of glass used for printed circuit boards, tapes, paper, cloth, pipes, tanks, boats, recreational equipment, roofing shingles, and automotive applications. Compared to the flat, container and decorative glass industries, we are very young. The early patents on fiber glass applications were issued in the 1930's. The type of glass most commonly used in the world and that discussed in this paper is designated as "E" glass. This is a boro-silicate type glass having specific chemical and electrical resistance and low thermal expansion properties.

Jan 1, 1986

By W. L. Batt

MODERN war means mechanization, and mechanization means raw materials, especially minerals-and lots of them. Let me recall a few events of recent history-events that constitute mile- stones down the road to the war now blazing on three continents and threatening to spread still farther. In 1932, Japan took Manchuria, largely upon the excuse that she needed raw materials; in 1935, Italy invaded Ethiopia, largely upon the excuse that Mussolini's growing nation needed raw materials-in this case oil; from 1933 to 1935, Germany cried out for a greater share of the world's natural wealth, and since 1938 has invaded or occupied ten other countries, frequently upon the excuse that she needed-and had a right to-more raw materials.

Jan 1, 1940

By H. V. Fairbanks

The following processes were investigated using ultrasonic treatment in mineral recovery: (1) cleaning coal from coal slurry ponds, and (2) extracting precious metals from tailings and other sources. The treatment entails the production of a water slurry of the material containing the mineral which is made to flow over the vibrating surface of the ultrasonic treatment unit. The vibrations transmitted into the slurry break up particle agglomerates and also produce a scrubbing action on the surfaces of the particles. The treated mineral particles were found to have increased settling rates, better compaction, and more rapid water drainage.

Jan 1, 1990

By M. Vallée

Several reviews of mineral project performance in the past 35 years indicate a pattern of occasional, but recurrent, mining project failures due to shortcomings in geological information and estimation, mineral processing and metallurgical testing, feasibility study objectives and requirements, and project start-up methods. A commitment to quality assurance and continuous improvement methods and to obtaining “ENOUGH DATA, OF APPROPRIATE QUALITY” is essential. Recent international and Canadian proposals for mineral resource and ore reserve definitions have taken a nonprescriptive stance that will undermine the formulation of requirements, guidelines and industry standards for efficient deposit delineation and estimation, and for the determination of project feasibility. To help reduce problems, every feasibility study supporting a mine development and production decision should be based on objectives and methods adequate to reach completion targets similar to the bankers’, as a good business target for a profitable project. In a resource/reserve system, the use of reserve should be restricted to a project that meets required technical, economic and legal feasibility requirements for successful project implementation, and the definitions of these categories should provide explicit limits. Current shortcomings will limit the ability of the Qualified Person to provide “adequate professional practice,” fulfill his/her professional responsibilities to his employer or client and provide adequate information to the investing public. We must take advantage of present opportunities for Setting New Standards for the new Millennium.

Jan 1, 2000

By A B. Christie, S C. Cox

Effective land-use planning requires accurate knowledge of mineral resource potential. Mineral companies during reconnaissance exploration, feasibility investigations and mine development also use this type of analysis. The Institute of Geological and Nuclear Sciences is undertaking a two-year project reviewing the resource potential of the West Coast of the South Island of New Zealand. Spatial prospectivity models have been developed as part of this resource assessment process, using computer based statistical pattern recognition techniques to delineate areas that are prospective for mineral deposits and to test deposit genesis models. Digital GIS data-sets of mineral occurrence were correlated against geology and exploration information. The distribution of mesotherrnal shear zone gold deposits in the Reefton Goldfield, were examined against geological data-sets from both the regional (QMAP) and local prospect-scale mapping. Weights of evidence analysis generated a correlation matrix that highlights relationships and degrees of association that might otherwise not normally be recognised.   Mesothermal shear zone gold deposits have strong positive spatial correlations with Greenland Group host rocks and areas with moderate to high quartz vein densities; moderate-strong positive correlation with regions <500 m from folds, with regions <600 m from faults and five to eight kilometres from granite contacts; moderate correlations with Ntrending fault and fold segments; and no/weak/poor correlations with fault intersections, fold-fault intersections, bends in regional structures and magnetic and radiometric data. The regional and prospect scale data sets give different results, with the more detailed prospect scale mapping giving generally better correlations. This emphasises the value of detailed geological mapping in the exploration process.   Maps generated by prospectivity modelling consistently highlighted areas of known mineralisation and generate targets where follow-up investigation is warranted. The prospectivity per unit area provides a measurable value that should change as new information comes to hand and, in addition to highlighting targets, can be used to measure the impact of increased exploration expenditure and assess the effectiveness of exploration investment.

Jan 1, 2001

By D N. B Skinner, R L. Brathwaite, M S. Rattenbury

The Institute of Geological and Nuclear Sciences Ltd has carried out a mineral resource assessment of the Coromandel region, one of the most mineral-rich regions of New Zealand. The assessment focussed on metallic minerals and clays, because these are the main commodities that have potential for increased production and export from the region (and from New Zealand).   Three steps were used in the assessment: 1) development of mineral deposit models, 2) comparison of the models with regional geology, structure, geochemistry and past mineral production to estimate the number of undiscovered mineral deposits, and 3) application of grade-tonnage models to determine the quantity and value of the known and undiscovered resources. In step 1, descriptive and grade-tonnage mineral deposit models were developed for 11 different types of mineral deposits: ò     Low-sulphidation andesite-hosted epithermal Au-Ag ò     Low-sulphidation rhyolite-hosted epithermal Au-Ag ò     High-sulphidation quartz-alunite epithermal Au ò     Porphyry Cu-Au-Mo ò     Andesite-hosted polymetallic veins adjacent to mineralised porphyry stocks ò     Zn-Pb-Ag skarn ò     Cu-Ag skarn ò     Hot spring Hg ò     Shoreline placer Ti ò     Rhyolite-hosted halloysite clay ò     Volcanic-related kaolinite clay   Step 2 was aided by a geographic information system (GIS) assembled from a number of digital spatial data sets including: a digital elevation model, an aeromagnetic map (from open file mining company data), a geological map (from the GNS QMAP project), location of areas of hydrothermal alteration, locations of mineral deposits (from the GERM database), stream sediment geochemical analyses (from the REGCHEM database), and a lineament map derived from satellite remote sensing data and the digital elevation model.   Based on May 2001 commodity prices, potential resources estimated for the 11 mineral deposit and grade-tonnage models total NZ$22 806 million for the metallic minerals, NZ$1000 million for halloysite clay deposits and NZ$57 million for kaolinite clay deposits.

Jan 1, 2001

By P T. Stoker, A Allman, D P. Carville

Classification of mineral resource estimates is one of the most important responsibilities of the Competent Person. In recent years, classification decisions have been driven more by the detailed block-by-block attributes generated by the now widely applied geostatistical estimation methods, and less by a general geological overview. This is increasingly resulting in æspotted dogÆ outputs, in which blocks of Inferred Resources or unclassified material separate blocks of Measured and/or Indicated Resources, or individual drill holes are surrounded by annuli of Measured and Indicated Resource blocks. Not only are such outputs potentially misleading, since they ignore fundamentals such as continuity of geology and mineralisation between drill holes and the imprecise nature of resource estimation, they can also cause substantial problems for engineers undertaking mine designs and estimating ore reserves, particularly for underground mines. Competent Persons for mineral resources must keep in mind the purpose of their work, and should use their experience and judgement to avoid or smooth out æspotted dogÆ classifications, providing a result commensurate with the level of geological and resource estimation confidence. For their part, ore reserve Competent Persons must understand the resource estimation and classification process, and should question resource classifications that are not consistent with the level of geological and resource estimation confidence.

Jan 1, 2006

By Kevin J. Palmer

The introduction of the National Instrument (?NI?) 43-101 Standards of Disclosure for Mineral Projects has led to some very specific requirements to reporting a Mineral Resource estimate for mineral projects to the public. There are elements of the Mineral Resource estimate that are based on the qualified person (?QP?) completing the work to accepted industry practices and applying their relevant experience. There is no document that defines what is considered the accepted industry practices. There are guidelines provided by the Canadian Institute of Mining, Metallurgy and Petroleum (?CIM?) but, in general, the industry practices are dynamic and often different QPs will estimate the same mineral project in different ways. This sometime happens on exploration projects as they proceed from one study to the next. The focus of this paper is to provide a review of some of the current practices that are published in Technical Reports (Preliminary Assessment to Feasibility studies) with respect to classifying a Mineral Resource as Inferred, Indicated and Measured and the grade interpolation and modeling methods, data support (i.e. geological drill hole spacing) and validation methods employed.

Oct 1, 2010

By D. S. F. Silva

A survey of 120 recent NI 43-101 technical reports was conducted to evaluate the current state of practice regarding resource classification techniques. The most common classification techniques are based on search neighbourhoods (50% of recent reports), drill-hole spacing (30% of recent reports), and/or kriging variance (6% of recent reports). Two new techniques are proposed. The first is based on kriging variance and involves removing one or more drill-holes with the highest weights while performing kriging and using the resultant kriging variance for classification. This technique has the advantages of variance-based techniques and reduces artifacts. The second technique is based on conditional simulation and uses a moving window approach for classification at the desired selective mining unit resolution based on larger production volume criteria. This technique has the advantage of accounting for heteroscedasticity, which is a common characteristic in mineral deposits, and also reduces artifacts since a production volume scale is considered for the actual classification. The drill-hole spacing, search neighborhood, kriging variance, and simulation-based techniques are described and compared for 2D and 3D examples with regular and irregular drilling patterns to highlight the advantages and disadvantages of each method.

Jan 1, 2014

By Ray Wood, Rene Sterk, Robin Falconer, Sean Aldrich, Simon Nielsen

"The Chatham Rock Phosphorite project is situated 450 km east of New Zealand at approximately 350 to 450 m water depth. The deposit occurs as a thin layer of phosphatebearing glauconitic sand at the surface of the sea floor and has a thicknesses typically ranging from 0 to 1 m. The sand layer consists of mainly silt and sand-sized sediments, with phosphatised chalk nodules up to 15 cm in diameter. Phosphate nodules were first discovered on the Chatham Rise in the 1950s by a New Zealand Government survey. During the 1960s to 1980s several private and government sponsored cruises explored the Chatham Rise and surrounding seafloor area. A total of 1174 samples were collected over a 600 km2 area with the majority of the samples collected using a pneumatic -or large Van Veen-style grab-sampler.Since acquiring the licence in 2010, Chatham Rock Phosphate Limited has conducted six cruises in two programs in the Project area. A total of 261 samples were collected using a Van Veen grab, box core and grab samples.Sample quality and QA/QC measures varied considerably between the cruises and within each cruise. A critical part of the assessment of the data collected in the Project area was to determine what quality thresholds to use to allow or disallow data to enter into the estimation process. As part of the data verification process, the relative and absolute quality of the data was assessed in as much detail as practically possible. The best samples were those that were collected using the pneumatic grab, sampled the full sand horizon, had a small location survey error and had no other apparent data ambiguities. This paper describes the challenges for mineral resource estimation for an unconventional style of mineralisation using unconventional sampling techniques."

Sep 1, 2014

By Peter N. Gabby

In 1990, the Bureau of Mines conducted a mineral resource investigation of the 12.321 acre Black Warrior study area, one of several proposed additions to the Sawtooth Wilderness. No identified mineral resources were delineated. There were 123 lode and placer claims in or adjacent to the study area. There is a known hot spring adjacent to the study area, but presently no geothermal leases are pending. Lode mines in pr adjacent to the Black Warrior study area have produced 4,022 tons of ore from which 1,981 oz of gold and 811 oz of silver were recovered. None of the vines are currently active. During the field study 125 rock samples were taken. Significant gold assays and favorable geologic characteristics at seven properties indicate that gold occurrences and resources with byproduct metals may exist in the study area. Two other sites yielded anomalous gold assays; however, sage favorable geologic characteristics are lacking. Presently, identified gold resources are being delineated by drilling programs in the nearby Atlanta and Rocky Bar mining districts. These districts have geologic characteristics similar to the Black Warrior area. During the field study 22 placer samples were taken. In most places where an anomalous concentration of gold was found, the stream channels are too narrow for operations other than recreational suction dredges. However. One area is estimated to contain over 2 million yd3 of gold-bearing gravels.

Jan 1, 1992

By Ronald B. Stotelmeyer

This report summarizes studies of 55 Idaho national forest roadless areas completed by the U.S. Bureau of Mines (USBM) in the period 1966-1992. These roadless areas have been recommended for addition to the National Wilderness Preservation System, proposed as special management areas, or otherwise recommended for study by the U.S. Forest Service or the Idaho congressional delegation. The Bureau of Mines' studies indicate which parts of the roadless areas contain mineral resources. They also show where mining and prospecting are likely to occur in the future, where mineral production has occurred in the past, and where abandoned mine workings (possible hazards) would be encountered. The number of mine and prospect workings found are a measure not only of surface disturbance, but of areas not wilderness in character.

Jan 1, 1994