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By Ertugrul Alp

Alp & Associates - Who We Are ?? Canadian consulting company (1999-?) ?? Principal Consultant: Dr. Ertugrul Alp, P.Eng. ?? Over twenty-five years experience serving the chemical, mining, pulp & paper, energy, steel, and transportation industries, and government clients. ?? Ph.D. in Mechanical Engineering, University of Waterloo ?? Experience: ?? Westinghouse Canada, Atomic Power Division, Manager, Analysis and Modelling ?? Concord Environmental (later Bovar Environmental), Principal, Manager, Air Quality and Risk Assessment ?? Arthur D. Little, Associate Director, Safety & Risk Practice Leader in Canada ?? Member: NATO CCMS Pilot Project on Disaster Preparedness (1991-1993) ?? Chair: MIACC Risk Assessment Expert Committee, 1995-1999 ?? Member: MIACC Committees on Land Use Planning and Pipelines (1993-1998) ?? Member: CSA/Q850 Risk Management Standard Technical Committee ?? Member: CSA/Z1002 OHS Risk Assessment Standard Technical Committee ?? Member: CCPA/CSChE Process Safety Management Committee (1999-?) ?? Member: ISO-31000 Risk Management Standard Canadian Advisory Committee ?? Chair: CSChE Process Safety Management Committee (2005-2006) ?? Chair: CSChE Expert Committee on Risk Assessment (1999-2005) ?? CSChE 2007 Process Safety Management Award

May 1, 2008

By W. C. Whittaker

COMPLETED in November, 1943, at a cost of over $1,500,000, Elk River colliery of the Crow's Nest Pass Coal Company, Limited, has been laid out and equipped for an ultimate annual production of 1,000,000 tons and replaces the recently closed Coal Creek plant, which has been operated by the Company for the past forty-five years. The project has involved the opening of mines in three seams, the construction of a complete set of colliery buildings, including a modern preparation plant of 360 tons per hour capacity, and the laying out of the necessary yard tracks and spur connecting the new development with the Company-owned Morrissey, Fernie and Michel railway, which, in turn, connects with the Canadian Pacific railway at Fernie. The colliery is three and a half miles east of Fernie, B.C., near the southern end of the Crow's Nest coal field, which contains the largest and most important body of coal in the Province of British Columbia. The coal-bearing horizon is the Kootenay formation, present in the form of a syncline covering an area of 230 square miles. Most of the coal seams occur in the lower 2,000 feet of the formation, the covering beds being largely coarse sandstones and conglomerates of great thickness, the presence of which accounts largely for the preservation of the coal measures. James McEvoy, in the report of the Geological Survey of Canada for the year 1900, states that the basin appears to contain a fairly constant coal content of nearly 172 feet in 23 seams of a thickness of one foot or over. Coal has been mined in the Fernie district since 1897 and the first shipments were made from Coal Creek colliery in the following year, over the then newly constructed British Columbia Southern railway. Since that time, a total of over 16,000,000 tons of coal has been produced, an average of 350,000 tons per year. The7ears of peak production were 1910, 1912, and 1913, with an all-time high of 924,000 tons in 1913. The lowest output in the history of Coal Creek was that for the year 1933, when only 60,340 tons were produced, the colliery being closed for some months. Present production from Elk River colliery averages 1,150 tons per day, the output being considerably less than it could be were sufficient man-power available.

Jan 1, 1944

By Valentin Choquenaha Bombilla, Oscar Alvarez Muiloz

"Tintaya’s basic production line is copper concentrate, which has an important gold content. The process used is flotation; the objective of the metallurgical department is to obtain the best results in the copper recovery without neglecting the gold, using very specific reagents. Copper recoveries are considered high, nevertheless every day emphasis is placed upon increasing those recoveries. Regarding gold, optimum recoveries could not be achieved with flotation; and implementation of a gravity circuit was considered.According to microscopy studies, the coarse and very fine grains of gold in native form are lost to tails. The native gold due to its high specific gravity is concentrated at the underflow of the cyclone, remaining in the circulating load of the circuit. It reaches three times the concentration compared to the head grade entering the ball mills. This re-circulation generates very fine and laminated gold particles inside the ball mill, passing to the classification stage making a short circuit to the overflow of the cyclone.The very coarse gold particles as well as the thick flakes of gold do not react favorably to the conventional flotation process; thus studies that have included gravity separation have been conducted to increase the gold recovery. Part of the research included concentrating tables, jigs, and Knelson Concentrators. The Knelson Concentrator proved to be the best selection in terms of metallurgical performance and recoveries considering the throughput and operation conditions of the Tintaya Plant.The gravity concentration circuit with the Knelson Concentrator was commissioned in BHP Tintaya in October 1998, as per the flowsheet shown later on. Presently the global gold production surpasses any estimated expectations.Present efforts are directed towards showing the evaluation and optimization of the different parameters that govern the performance of the Knelson concentrator, as well as illustrating the difficulties and successes throughout the operating period.In the first year of operation 200 tons of gold concentrate have been produced with an average concentrate grade of 320 gramdton, having paid back in full the cost of the automated KC-XD- 48 Knelson Concentrator, the peripheral equipment, and the cost of the installation."

Jan 1, 2002

By Trevor Yeomans

"NVI Mining’s Myra Falls Operation is a forty year old underground mining operation feeding a 4000 mtpd concentrator.The current Mill, built in 1985, was designed to process a large massive sulphide ore-body. This ore-body, known as the “HW”, contains about 50% pyrite. Value minerals are chalcopyrite, and sphalerite, with precious metals occurring in all mineral types.By 1997, mining of a new ore-body, known as “Battle-Gap” commenced. Mineralogically complex, the new orebody contains about 15% pyrite, copper minerals including primary chalcopyrite, secondary bornite, chalcocite and tennantite, combined with increased galena and sphalerite.Flotation performance generally decreased with increasing amounts of Battle-Gap ore types, with both copper concentrate quality (increased lead and zinc content) and copper recoveries being affected.Following significant metallurgical testwork, a new fully sequential copper-lead-zinc flotation flowsheet and reagent scheme was developed.This sequential flowsheet was progressively installed and commissioned during 2006.Copper concentrate lead and zinc smelter penalty contents have been reduced by some 40%, whilst increasing copper recovery by 10%.INTRODUCTIONNVI Mining operates the Myra Falls Operation near Campbell River on Vancouver Island, BC. The complex has been in operation since 1966 with mining being predominantly underground. One unique feature of Myra Falls is that the mine operates within a BC Provincial Park.In 1985, a new large massive sulphide ore-body (HW) had been defined, and metallurgically tested. A new concentrator was built based upon this massive pyrite, chalcopyrite, and sphalerite mineralization producing copper and zinc concentrates by conventional flotation methods."

Jan 1, 2008

By K. V. Konigsmann

"The results of Mr. Klymowsky's research confirm the essential role played by oxidation products in the flotation of base metal sulphides. They invite a discussion on the subject of aeration which I may open by a brief description of the development and current practice of aeration. The first installation of pre-flotation aeration in Canadian milling practice was undertaken during the years 1928 and 29 at the then new Noranda Mill. C.G. McLachlan and his collaborators demonstrated that the flotation differential between chalcopyrite and iron sulphides was enhanced by aeration in soda ash alkaline pulps. The ores treated contained more than 80 per cent sulphides. It was proposed already then that the products of mineral oxidation assisted copper and retarded iron sulphides, at least pyrrhotite flotation. The concentration of thiosulphates was used as a measure of the progress of oxidation. Several papers by C.G. McLachlan elaborate on this subject.The aerator was also used as classifier since it was held that aeration, i.e. controlled oxidation, should go hand in hand with creation of new mineral surfaces. Grinding mills and aerators were placed in closed circuit. Figure 1. This aeration was essential for successful separation at Noranda.Following the application of aeration at Noranda the technique was applied to existing mills in N.W. Quebec. Impressive improvements in concentrate grades and recoveries were obtained. It was observedthat the zinc flotation benefitted from aeration as much as the preceding copper float. In the late forties and fifties the aerator classifier was installed in new mills associated with the Noranda group. A diagrammatic sketch of the Quemont flow-sheet (figure 2) may serve as a typical example."

Jan 1, 1973

By R. E. Michelutti

"The Sudbury area environment became drastically altered commencing in 1871 with lumbering, repeated fires and early open roasting operations from 1887 to 1929. These combined factors had such a pronounced effect that approximately 24 square miles were totally denuded of any vegetation and 87 square miles were semi-barren to somewhat stressed.The two nickel producing companies in the area have reduced the sulphur dioxide emissions considerably over the years. Falconbridge Limited, alone, reduced sulphur dioxide emissions by 77% from 1971 to 1984.These reductions have resulted in improvements to the air, soil, lake and vegetation quality in the Sudbury area.INTRODUCTIONThe Sudbury area environment became drastically altered commencing in the 1870's with lumbering, repeated fires and early open roasting operations from 1888 to 1929. These combined factors had such a pronounced effect on the Sudbury environment that approximately 24 square miles (64 sq. km.) were totally denuded of any vegetation and 87 square miles (225 sq. km.) were semi-barren.Over the years, the Sudbury area environment has improved considerably. This has been due to emission cutbacks by both Inco Metals and Falconbridge Limited, coupled with industry, government and community reclamation programs. Before the improvements are discussed, a better understanding of the historical degradation is required."

Jan 1, 1986

By Rudy Tenbergen, Dick Farmery, Jim Naylor

"Paste backfill has replaced cemented rock fill as one of the components to improve ground · control and mine safety at the Macassa Operation of Kinross Gold Corporation in Kirkland Lake, Ontario. It is the first operation to utilize "" flash thickening ""of very fine gold tailings to a paste consistency in the ""Paste Production and Storage Mechanism"", a joint technical development of Inco and GL&V. The tailings paste is mixed with alluvial sand to produce an engineered quality paste backfill. The development leading up to the decision to proceed with this novel technology is discussed, as well as commissioning of the backfill operation.IntroductionThe occurrence of a major rockburst on November 23, 1993 prompted a review of mining and backfill procedures at the Macassa No 3 shaft . This shaft is some 7238 ft deep and lies in a mining belt that is prone to seismic events. The recommendations were to change the mining from underhand cut and fill to mechanized long hole stopping and to look at alternatives to the rockfill backfill system in place. The Macassa cemented rock backfill operation, while producing the desired fill stiffness had drawbacks as compared to paste fill. With paste fill, placement rates are faster, more openings can be filled, it is less expensive and less prone to the occurrences of compensable incidents.Macassa mining personnel visited the Sudbury operations of Inco in 1993, where development on paste backfill was in progress. As some of the R&D was taking place with funding from the Premier's Council Technology Fund of the Ministry of Trade and Technology of the Province of Ontario , Inco personnel at that time did some feasibility and conceptual consulting on the use of paste fill for the industry. Inco had developed the use of alluvial sand paste fill, an engineered blend of alluvial sand and tailings fines and was doing development work to eliminate the ""conventional"" way of producing paste from mill tailing by thickening and filtration. This latter development work was taking place with GL&V Ontario. That work led to the filing of a joint Inca/ GL&V patent application for the PPSM, the Paste Production and Storage Mechanism with all marketing rights being held by GL&V."

Jan 1, 1997

By F. Flynn, P. Downey, G. Ritson

"Bell Creek Mill which has been in continuous operation since 1987 has undergone numerous operational changes in the past three years. The addition of over 2. 5 million tons of resource at over 13 git from Hoyle Pond Mine precipitated an expansion program for the Bell Creek Mill. This paper discusses the major changes that have occurred over the past two years to increase throughput and efficiencies. In addition, the refractory ore treatment options are also discussed.IntroductionThe Bell Creek Mill is located in the Timmins Goldcamp approximately 8km NE of porcupine Ontario. (Fig I.)The mill was originally constructed by Camamax in 1987 to treat the Bell Creek ore at a design throughput of 350tpd. The flowsheet (Fig 2.) consisted of two stage crushing, grinding, thickening, leach and drum filtration with gold recovery by Merrill Crowe.As ore depleted at Bell Creek, the Mill was purchased by Falconbridge to process ore from their Hoyle Pond property. Kinross purchased the Hoyle Pond property and Bell Creek Mill from Falconbridge in 1992.The successful exploration program at Hoyle Pond has led to several expansions and process design changes, with further changes planned over the next twelve months.In 1994, the mine produced 61,865 oz. of gold at an average cost of 197US$ per oz. In 1995 production was 91, 611 oz. at a cost of 187US$ per oz. Projecting the nine months ended September 30, production for 1996 will be 155,000 oz. at a cost of 165US$ per oz.In early 1997, the CIP expansion will be complete, with a target of 175,000 oz. at a cost of 176US$ per oz for 1997. The mill throughput will have increased from 400tpd to 1500tpd between 1994 and 1997.The changes to Bell Creek since 1994 have been numerous with very little of the existing equipment still in operation. The total cost of the expansion to date is 15 million C$. This paper discusses the major projects carried out during in this time. The focus will be to highlight the justification of each project, the design and engineering, some of the initial start-up problems and solutions.Figure 3 shows a plan of the existing mill facility together with the various additions that were carried out."

Jan 1, 1997

By Michel Ruel

"PID loops – also known as base layers or regulatory controls – form the foundation of any plant’s control layer and it is generally accepted that PID loop health has a direct impact on the plant’s bottom line. Keeping these thousands of control loops in good health has a direct impact on the plant’s bottom line: it reduces variability, improves quality and throughput, and decreases energy costs and raw material usage. This has been well proven and documented in many articles. In the last ten years, technology has evolved: control engineers can now keep track of control loop performance and link it to the root causes of variability. However, they lack industry-wide best practices and criteria for determining what can be considered as excellent, good, fair, or poor performance. To ensure that PID control loops continue to perform well and meet their objectives, control engineers need a combination of (a) an appropriate monitoring technology and (b) best practices for doing the maintenance of base layer controls.Most plants have limited resources and operate with an increasing number of constraints; therefore, using the right tools and including reports in daily workflow is key for success. This paper suggests roles and responsibilities of key players needed to work toward control performance best practices and discuss organisational changes to succeed.INTRODUCTIONAlthough PID controllers are reliable workhorses in the process industry, they are often underrated. Since the 1980’s, computer control has evolved and the control algorithms used by control engineers have become increasingly complex. However, PID controllers still handle over 90% of the control loops in operating plants. Table 1 shows the savings that can be realized by achieving best-practice in several different process control categories (Brisk, 2004). The savings are expressed as a percentage of production costs."

Jan 1, 2011

By Andy Cole

Barrick Gold recently implemented an oxygen roasting process to treat carbonaceous ore from its Goldstrike property in Nevada. One of the key project challenges was the design of the roaster gas cleaning system, which was driven by the requirements of a strict air permit and the need to achieve very high reliability. The roaster gas systems include multiple stages of wet particulate collection, a dual-alkali SO2 scrubber, mercury scrubbing, CO oxidation and NOx reduction. This paper describes the gas system, the influence of regulations on project implementation, and performance of the system.

May 1, 2002

By T. Backers

In fracture mechanics modeling the rock mass is seen as the combination of rock material and fractures, which are evident on different scales. The activation and propagation of fractures dominates the stability and performance issues as well as fluid flow potential. Once fractures have started to grow into each other and create through going separations, stability of rock engineering constructions may be violated. Further, as fracture mechanics inherently incorporated a scaling law in the form of the participating fracture length, scaling issues can be more accurately mirrored. This contribution highlights some examples of application of a fracture mechanics based code on some rock mechanics issues such as numerical laboratory experiments, borehole stability or the creation of fluid pathways due to underground constructions. The results show explicitly the creation of fractures and connection of existing ones, and hence the safety and performance issues. It has to be concluded that the basis for frequent application of fracture mechanics on specialized challenges in Geomechanics is laid, and the needs for future developments are defined.

May 1, 2009

By L. W. Hamel

"DUST CONTROL - GRANISLE COPPER LIMITEDINTRODUCTIONGranisle. Copper Limited is located in the north-central region of the Province of British Columbia, approximately 200 road miles north-west of Prince George. Mill startup was in November, 1966, at a rate of 5,000 tons per day, expanded to 13,000 in 1973. The primary crushing rate is 1,200 tons per operating hour, and the secondary 750, and they can be operated jointly or separately.DUST COLLECTION SYSTEMS There are seven dust collection systems ventilating the crushing and grinding complex. The individual pickup points are depicted on Figure 1 -""Crushing Plant Flowsheet"", and Figure 2 - ""Concentrator Flowsheet"", e.g. 1A, 1B, 3C, etc.System No. 1 - Primary Crusher The feed rock box of the Allis-Chalmers superior 42-65 primary crusher is ventilated by 19,000 CFM of air exhausted directly to atmosphere by a Sturtevant 426 M fixed discharge fan.No. Dust Pick Up Point CFM lA Crusher Feed Rock Box 19,000System No. 2 - Primary Crushing and Screening System No. 2 ventilates the primary crushing and screening equipment. A total of 19,000 CFM of air is exhausted by a Sturtevant 426 M fixed discharge fan through a Howden Type S - size 75 cyclone locally modified for wet scrubbing."

Jan 1, 1976

By M. Massinaei, S. Abasi, M. Oliazadeh

Reliable measurement and control of the pulp-froth interface (froth depth) in the flotation columns is critical to achieve the desired metallurgical performance. Shallow froths result in a reduction of grade because of particle entrainment and deep froths reduce recovery because of the drop back of entrained and weak hydrophobic particles to the pulp zone. The cleaner circuit at Miduk copper concentrator consists of three parallel MicrocelTM flotation columns 4 m in diameter and 12 m in height. The interface level of the flotation columns is measured by two pressure sensors located at 1.4 and 2.4 m from the cell lip (in the collection zone). In this study the performance of the level detection system at different operating conditions was evaluated. A calibrated float-ultrasonic location system was used for measuring the actual froth depth. The results indicated that the existing level control system was subject to considerable error. The absolute error was found to be 33.27 cm. This was mainly attributed to the constant set-point value assigned to the froth density (ρf=0.3 g/cm3), which actually varies with the operating conditions. The actual froth density at different conditions was calculated and its average value (ρf=0.12 g/cm3) was re-set in the control system. This resulted in substantial reduction in the level-detecting error. Recommendations for more accurate measurement of the interface level were presented. INTRODUCTION Froth flotation is a complicated process because of many involved variables. One of the most significant controlled variables in the flotation process is the pulp-froth interface (froth depth). The froth depth has a profound influence on the metallurgical performance parameters (i.e. grade and recovery). Shallow froths result in grade reduction because of particle entrainment and deep froths reduce recovery resulted from the drop back of entrained and weak hydrophobic particles to the pulp zone (Finch and Dobby, 1990). Various techniques have been developed for measuring the interface level of the flotation cells in the last few decades. These techniques can be classified as: Techniques based on hydrostatic pressure measurements (Finch & Dobby, 1990), Techniques based on the density gradient (float) (Moys & Finch, 1988), Techniques based on conductivity measurements (Uribe-Salas, 1991), Techniques based on temperature measurements (Moys & Finch, 1989).

Jan 1, 2019

By Roe-Hoan Yoon

"Industrial flotation columns often suffer from low recoveries and high maintenance requirements because of poorly-designed air spargers. The MicrocelTM bubble generators were developed at Virginia Tech to overcome these problems. In this system, small air bubbles are generated by circulating a portion of the flotation pulp through a set of static in-line mixers. The small bubbles improve flotation kinetics and allow a higher recovery (or capacity) to be achieved. Other advantages of the system include reduced air consumption, plug-free operation and on-line maintenance. This article discusses the advantages of the MicrocelTM bubble generators and presents examples of successful in-plant demonstrations.IntroductionColumn cells are widely accepted in industry for cleaner operations because they are more selective than mechanically-agitated conventional cells. The improved selectivity can be attributed to the use of wash water which minimizes the entrainment of fine gangue particles into the froth product. Columns may also produce higher recoveries if the air sparging system is properly designed and steps are taken to minimize back-mixing. Furthermore, the quiescent conditions afforded by column cells may be beneficial for recovering coarse particles that are readily detached from bubbles under more turbulent conditions. Also, properly-designed columns offer advantages in terms of savings in floor space, reduced operating and capital costs, and simplified circuitry.It is unfortunate, however, that some of the advantages of columns are not fully realized in industrial practice. Some column circuits are unable to achieve their design capacity, while others require extensive maintenance programs. These shortcomings can usually be attributed to deficiencies associated with the design, scale-up and operation of the air-sparging system. In this article, some of the basic problems associated with commercial air sparging systems are discussed and alternatives are suggested."

Jan 1, 1994

By O. K. Mahabadi

The scope of this study is to simulate the behaviour of a layered rock sample under standard laboratory Brazilian Disc test using an innovative combined finite-discrete element method (FEM/DEM) research code. The influence of layering and the direction of loading on the samples behaviour are studied through various layering and loading configurations. A parametric study including the effect of loading rate on the tensile strength of samples has been carried out. This paper demonstrates the suitability of the numerical approach to explicitly model rock deformation and failure.

May 1, 2009

By Svato Prochazka

Content: ? commonly used drive systems ? drive system efficiency ? introduction to SR technology ? SR drive system advantages Commonly Used Feeder Drives Technologies ? VFD + induction motor ? hydraulic drive + hydraulic motor SR drive + SR motor

May 1, 2010

By K. Delbeke

Within the framework of the EU Existing Substance (93/793/EEC) and REACH regulations EC/1907/2006), the copper industry initiated in 2000 a comprehensive Voluntary Risk Assessment of copper and several copper compounds. The Italian Government's Istituto Superiore di Sanità, reviewed the process and reports on behalf of the European Commission. Copper exposure levels to man and the environment from production of copper anodes and cathodes, copper powders and copper chemicals as well as fabrication and use of semi-fabrication products and down stream user products were collected across Europe. Environmental and human health effects data were obtained from literature as well as novel research programs and used to deduct safe threshold

Jan 1, 2007

By M. Kane, B. Bissonnette, D. Hodouin

"A laboratory cell has been designed for a careful investigation of gold ore cyanidation using mathematical modelling of the process kinetics. The cell is a stirred vessel with continuous monitoring and control of pH, oxygen and free cyanide contents. Samples are automatically extracted for gold analysis. The instruments are connected to a microcomputer which records all the measured variables and calculates the reagent consumption (air or oxygen, cyanide, lime). For cyanide control a sample is automatically extracted and filtered and the solution analyzed, using a specific electrode, by a flow injection technique. The rate of gold dissolution is modelled using a kinetic model the parameters of which are calculated by a non linear least-squares technique. The parameters of an empirical model of reagent consumption are also estimated. The resulting model is used in a simulator for gold cyanidation plant design, tuning and control.INTRODUCTIONThe leaching of gold ores in a cyanide solution is the usual method for gold extraction from raw ores. This process requires long reaction times and leads to very significant consumption of cyanide. The optimization of the cyanidation plant operation is a very important aspect of gold ore processing for increasing gold recovery and decreasing operating costs. The key parameters to the improvement of gold extraction are the selection of an efficient solution chemistry, the design of the size and the arrangement of the equipment and the correct tuning of the operating variables. Automatic control strategies can then be applied to maintain industrial operations at their optimum setpoints.Two approaches can be used for optimizing design and control of cyanidation circuits, either empirical trials for improving process performances or mathematical modelling of the process kinetics for subsequent analysis, simulation and optimization. The advantages of the second approach, which is used in this study, is that it gives a systematic pattern to interpret data and reliable tools, in as much as the models are good, to improve operation performances. In order to determine the structure and the coefficients of cyanidation models, well controlled measurement and calibration procedures must be used. The purpose of the paper is to present an equipment and a test procedure for modelling the kinetics of gold ore cyanidation."

Jan 1, 1990

By Glenn Clarke, Ben Holloway, Barry Lumsden

"BHP-Billiton’s Cannington mine in Northwest Queensland produces a silver-rich lead concentrate and a zinc concentrate. The plant has the capacity to treat 3.1 mta and for the year to June 2006 mean feed grade was 10.3% Pb, 461 g/t Ag and 3.7% Zn. Recovery losses of lead and silver are primarily in the fine fractions. In 2001, the plant was modified when it was determined that splitting the lead feed into two size fractions, and floating the two fractions separately increased fine lead and silver recovery. The fine lead fraction (called the split float) is 80% <16µm and about a quarter of the lead and silver is in the finest fractions. In 2006 to further improve lead and silver recovery a statistical plant trial of magnetic aggregation conditioning of the split float feed was undertaken. While pure galena is diamagnetic the Cannington galena contains iron within the galena mineral resulting in the galena having a paramagnetic, magnetic susceptibility. The trial demonstrated to greater than 98% statistical significance an increase in lead recovery, and to 99% statistical significance an increase in silver recovery, and to greater than 97% significance an increase in the lead in concentrate in the split float circuit. These economic recovery benefits with magnetic aggregation of the split float feed, has led to the incorporation of this technology in the plant.INTRODUCTIONThe BHP-Billiton owned Cannington silver, lead and zinc mine is located in the Australian state of Queensland about 800 kilometres west of the coastal city of Townsville. This is a pastoral area characterised by large cattle farms, low population density and very little infrastructure. The area has two seasons, a wet, hot summer and a dry, mild winter. Because of its isolation and lack of infrastructure the mine has always operated on a fly in fly out basis.Geological drilling defined the resource as 43.8 million tonnes grading 11.6% lead, 4.4% zinc and 538 ppm silver (Walters and Bailey, 1998). At times during its history Cannington has held the crown as the single largest lead and silver mine in the world (Torrisi and Smith 2003). Another unique characteristic of the operation’s history is the rapid progress from discovery to operation. The first drill to intersect the ore body was in 1990 and the mine and plant was commissioned in 1997."

Jan 1, 2008

By Peter A. Eshun

This paper studies two methods that account for risks associated with gold mining projects such as mineral risks and country risks. The first method is sensitivity analysis, which investigates the effects of a change in any economic parameter such as operating cost, capital investment, gold price or taxes on the viability of the project. The second method is Monte Carlo Simulation technique, which takes into consideration the simultaneous random variation of the economic parameters on the project&apos;s viability. An automated simulation cash flow model has been developed as part of this paper. Sensitivity analysis and the simulation model have been used to investigate the economic viability of the Dokrupe Gold Project (DGP) serving as a test case. It is concluded that, the Monte Carlo Simulation technique gives a more realistic judgement of the economic viability of gold mining projects.

May 1, 2004