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By L. D. Smith

Net Present Value Impact of Discount Rate The Discounted Cash Flow (DCF) method of valuations is universally used and accepted. The main criticism of the method is that it does not recognize the value of projects long life projects. This can be seen in the preceding graph where the present value of cash flows in later years are small for discount rates over about 10%. This graph covers a project that has a 25 year operating life. It is clear from the low height of the NPV bars at 10% and 15% in the last years of the project that an additional 25 years would add almost no value to total project NPV. As an example of this effect, an colleague undertook the evaluation of a pulp and paper project. The plant could be justified, but it was not possible to justify planting the trees as they took too long to grow and so had not appreciable NPV. The plant had to purchase wood to feed the plant.

May 1, 2013

By H. F. Zurbrigg

Introdduction The main line of ascent in the development of the nickel industry may be traced back through the International Nickel Company of Canada, Limited, to its earliest antecedents, the Canadian Copper Company and the Orford Copper Company. Mining geology is but one aspect of the overall development of this organization, and the stress it has placed on geology grew according to the need. In the early days, intensive geology was not required because ore supply was not one of the main problems of this or any of the pioneer companies. The difficulty then was to find economic methods for reducing the ores to nickel and copper, and markets for absorbing nickel in the face of a limited demand from consumers heavily prejudiced in favour of the New Caledonia product. "Very early in the history of the region it was patent to everyone that to share in the full benefits of the industry the same individuals or company must control the whole of the operation necessary to manufacture the finished product' (1, p. 45). These conditions were fulfilled for the International Nickel Company in 1902 when the Canadian Copper Company (incorporated 1886), with its ample ore supply, took the initiative to merge its interests with those of the Orford Copper (Refining) Company (incorporated 1887) to form the new company which, with reorganizational changes, emerged as the producer of the overwhelming bulk of the world's nickel. The Mond Nickel Company, Limited, entered the field in 1899 with a refining process, and over a period of years acquired ore through purchase of mining properties. This Company operated successfully and independently until 1929 when its assets were joined with those of the International Nickel Company in order to permit the most economic exploitation of the Frood-Stobie orebody in which both Companies were interested.

Jan 1, 1948

By Peter K. Kaiser

Planning and design of deep underground mines involves a process of complex three-dimensional data integration utilizing information from exploration (geology, rock mass characteristics), engineering (mining method, excavation geometry, stress) and operations (time, in the form of sequencing). As new logging and monitoring technologies are being developed, the amount and data complexity becomes overwhelming and decisions are often made based on only a small part of the available data. Recently, Laurentian University opened a state-of-the-art Virtual Reality Laboratory (VRL), a Mining Exploratorium that is unique in the world of mining and offers an exceptional data interpretation environment for mine planning and design. The Mining Exploratorium combines a large format spherical stereoscopic projection system, equipped with high definition projection providing the highest resolution of active stereo in the world today, with advanced features of earth modeling software. Combined, this creates the first virtual reality facility geared specifically to the interpretation of mine geometry, geology, geochemistry, microseismicity, geomechanics and mining data sets. This paper demonstrates how value can be added to the mine planning and design process by utilizing this unique tool in the mining decision-making process via better comprehension of spatial relationships of data and by interpreting the data in a collaborative immersive virtual reality environment.

May 1, 2002

By Stanley G. Hutton, Robert Brubaker

"It has long been recognized that mining workers subjected to high levels of hand-transmitted vibration may suffer from vibration-related complaints. Prolonged exposure to whole-body vibration may also result in adverse effects. In this study, the effects of vibration on mining workers are examined. Previous work documenting the occurrence of vibration-related disease is reviewed. From this work, it is apparent that operators of hand-held pneumatic rock drills are exposed to a significant risk of developing vibration disease. Vibration levels recorded on the rock drills now in use are presented and shown to exceed levels recommended by a proposed ISO standard.IntroductionThe possible harmful effects of exposure to excessive vibration levels have long been recognized, particularly among operators of hand-held tools. Numerous cases have been reported of a vasospastic disorder commonly known as vibration white finger disease (VWFD), which was a term coined by the Industrial Injuries Advisory Council in Scotland in 1970(1 ), Those suffering with the disorder have frequent vasospastic attacks in which the fingers, hand and, in advanced cases, the lower arm turn white and numb, usually after a cold stimulus. Advanced stages of VWFD have been reported in which the skin becomes ulcerated and gangrenousm. The incidence of the disease has been particularly serious in the forest industry due to the extensive use of chain saws. However, in recent years, the introduction of antivibration saws has resulted in a significant reduction in the occurrence of the disease.In a recent report for the Canadian Department of Supply and Services - Energy, Mines and Resources, Hutton & Brubaker considered the effects of vibration on workers in the mining industry. In this report, the physiological and medical effects of vibration were considered, relevant vibration standards were discussed, previous vibration measurements were documented and field measurements carried out. In the present paper, the results recorded in this study will be summarized, together with results that have been previously published relating to vibration levels existing in the mining industry."

Jan 1, 1982

By J. Y. Murdoch

TAXATION has become a major item in the operation of Canadian mines, and, as such, merits our most serious consideration. I feel it was a splendid idea for the Institute to set aside this time for a frank discussion of this important subject, and believe great benefit will result from a better understanding of the methods and underlying principles involved. Mining, as a great national industry, may quite properly be called upon to pay its fair share of the cost of running the country; and there is no tendency on our part to avoid this responsibility. There is, however, a very definite demand that the proportion be just, and fairly and sensibly applied. I believe that Mr. C. G. Williams, Secretary of the Canadian Metal Mining Association, and others, are giving details of the various Provincial and Dominion regulati6ns, so I shall not touch on that phase of the situation. However, there are some important factors to which I should like very briefly to call your attention. The first is the vital need for stability. As you all know, a considerable period must elapse between the preliminary stages of any mining venture and the time when it comes to production-or is finally abandoned as un-profitable. These early days are fraught with many unavoidable uncertainties. If, to these natural hazards, the apprehension of instability of governmental action be added, the risk becomes so great that capital seeks other and safer fields for investment, and many otherwise promising projects are thus discarded. There probably never has been a time in recent years when so much money was seeking investment as now. Under favourable conditions, the development of our great mineral resources would be a natural and attractive outlet for this money. The amount of taxation which the mining industry can properly absorb is of the utmost importance at this time, and it might be well to consider this question in its relation to the economic stability of our country, for it cannot be too greatly emphasized that direct taxation is only one item in the net return which our governments derive from the mining industry. Indeed, the many indirect benefits are so manifest that it would seem almost unnecessary to enumerate them! We almost invariably think of mine taxation as a direct company tax-overlooking the fact that sales tax, customs duties, acreage tax, income tax on mine dividends, foreign shareholders' dividend tax, and others, must all be taken into consideration. It would seem that the economic value of non-ferrous metal mining in Canada is not sufficiently understood and appreciated.

Jan 1, 1935

By Michael K. Watkeys, Charlesworth. E. GUY, Jacobus E. Potgieter, Anhaeusser. Carl R., Roger L. Gibson, Alexander F. M. Kisters

Abstract - Intrusive features of cupriferous noritoids from the deeply eroded Proterozoic granite-gneiss terrane of the Okiep Copper District in South Africa illustrate the emplacement of basic magmas into a mid- to lower-crustal environment. The small, easterly trending intermediate to basic intrusions of the so-called Koperberg Suite display a wide variety of geometries, occurrence and emplacement modes, including dike-, sill- and plug-like bodies. Coeval granulite-facies metamorphism, partial melting and ductile deformation of country rock gneisses during intrusion of the basic magmas led to emplacement and dilation processes of the intrusions which differ significantly from those described for dikes and sills at shallow crustal levels. Regional tectonic stresses are largely negligible due to very low differential stress (?1 - ?3) during deformation and intrusion, which permits emplacement at high angles to the principal compressive stress and which follows favorably inclined structural anisotropies. Dilation of the basic intrusions is largely determined by compositional differences of host rocks and occurs by thermal erosion, i.e., assimilation of wall rock gneisses. Low length-to-width ratios of basic to ultrabasic dikes and predominantly diaper -like outlines of mesocratic bodies are indicative of low viscosity contrasts between the mafic magmas and high-grade metamorphic host-rock gneisses. Buoyancy-controlled ascent of the basic to intermediate intrusions is expressed by a broad compositional zoning of basic bodies with respect to the granite-gneiss stratigraphy. Various intrusion modes within the stratigraphic column of the granite-gneiss sequence reflect a lithological and structural stratification of the seemingly homogeneous granite-gneiss terrane.

Jan 1, 1994

By Hu Harries

WE RECENTLY completed a study for a client, who is an applicant to export gas from the Province of Alberta, on the effects of gas export on Alberta's economy. This study was part of the client's application ?before the Conservation Board, and, no doubt, some of you are familiar with it. Submissions by other applicants in earlier hearings before the Board and before the Royal Commission on Energy, as well as claims made by parties opposing export, have also brought forward a number of other opmwns regarding possible economic effects. Ali of these studies have been on a piecemeal basis. They have dealt with particular aspects of particular applications, and only indirectly and by inference with the overall question of gas ex-port. We have prepared this paper to review the overall picture and ex-amine, as far as time permits, all sides of the question. While the paper is entitled Economic Effects of Gas Export on Alberta, we felt that the area considered should in-elude northeastern British Columbia, not only because Westcoast, the first major gas export project, is essentially a northeastern B. C. project, but because this area has historically been, from the point of view of economic, if not of political, geography, part of Alberta. In this paper, when we talk of export, we mean export from the Province or, in this case, from Alberta plus northeastern B. C. Sales to other parts of Canada have exactly the same effect on the economy of this area as l1ave sales to the United States, provided, of course, they are made on equal terms.

Jan 1, 1958

By Timothy W. Ellis

Wire Bonding is the dominant IC interconnection process presently used in the semiconductor assembly industry (1). The flexibility, adaptability and cost of wire bonding will continue to keep it as the key process for the interconnection of integrated circuits to substrates. However, wire bonding still has certain technological hurdles to overcome if it is to continue following the semiconductor roadmap (2). Particular issues which need to be addressed include low overall tensile strength, low elastic modulus, low shear per unit area and mechanical loop stability of Gold based micro-alloys. The ability to produce ?Deformation Process Metal-Metal Matrix Composites? (DMMCs) is based upon the deformation nature of immissible metallic systems. For reference, the Gold (Au)-Molybdenum (Mo) phase diagram is shown in Figure 1 (3). By inspection of the diagram, Au has a very low solubility for Mo, while Mo has essentially no solubility for Au. This is the metallurgical analog of oil and water. In the Au-Mo case, this is particularly troublesome when producing precursor ingots of the alloy to be formed into wire products. In Table 1, the melting points and densities are shown for Au and Mo. As shown, the melting point of Mo is significantly higher than Au, and is very close to the boiling point of Au (2856°C). However, Au?s density is higher than that of Mo. As such, conventional casting techniques are not suitable, since solid Mo would float off the surface of an Au melt thus depleting the matrix of its alloy addition. In this work, two-phase composite wires were produced by deformation processing to develop an interconnection wire with elevated tensile strength, modulus and shear to those commonly available in the market (4). This technology has been used previously in the production of high strength electrical conductors particularly for high field pulsed magnets (5).

Oct 1, 2003

By Peter C. Jones

The paper gives a broad view of the maintenance procedures at the Cassiar Asbestos Corporation property. Comparisons are drawn to indicate the changes in facilities and approach that have evolved over the last 25 years while coping with the northern British Columbia climatic conditions. Special emphasis has been placed on the importance of the support groups providing services for both the mine site and the town.

Jan 1, 1978

By Ralph D. Parker

THE subject matter of this paper will be primarily restricted to the metallic mineral industry, which last year was responsible for almost 60 per •Cent of the total value of Canada's mineral production. It has been written that, in the broad sweep of eternal time, sixty years is as transient as a flicker of lightning in a summer night's sky. In the history of mankind and human endeavour, however, six decades can encompass momentous events and far-reaching •circumstances, all of which affect the lives of men and change the destiny of nations. This observation is con-firmed very positively by a study of our Canadian mining history, from either the broad viewpoint of human progress or the more specialized viewpoint of national economy. The past sixty years have witnessed vast changes in the economic importance of mining in this country's affairs, and also in the technology of the industry. Mining has emerged from the days of rule-of-thumb practice and is now taking on the stature of a highly diversified science.

Jan 1, 1962

By H. Reimer

The rates of return on investment are examined for several major Canadian mining companies. Because we are dealing with a highly cyclical industry, subjected to widely fluctuating metal prices, rates of return are examined over a 20-year period. Conveniently, the first decade examined reflects the period when the industry enjoyed incentives to develop deposits; during the second decade, incentives were reduced and the industry became the most heavily taxed industry in Canada. The high rates of inflation since 1973 have distorted the real rates of return on investment if one considers replacement cost.

Jan 1, 1977

By R. D. Brown

"AbstractIn order to raise the enormous amounts of capital which will be essential for the development of Canada's mineral and petroleum resources, this country's resource industry must be permitted to earn an acceptable rate of return. The existing tax regime, with its high rates, complexities and misdirected incentives, presents a serious obstacle to our resource industries in their development of Canada's immense , but increasingly lean, resources. Government tax and other policies are not the only cause of the crisis now facing the resource sector in Canada, but a reformed tax system, with stable and reasonable tax burdens, is required if Canada's resources of minerals, oil and natural gas are to continue to contribute in the future, as in the past, to our national well-being.An independent task force, organized under the auspices of the Canada West Foundation, has recently completed a wide -ranging report: on the future development of Canada's mineral, oil and gas resources. This five-volume report, completed after almost two years of research and study, concludes that Canada •is facing a major crisis •in the development of our resources, It states that unless corrective action is taken now, mineral production and exports could decline drastically after 1985, at the same time that Canada would face massive bills for imported oil because of inadequate and declining production.The task force, chaired by the author of this article, has put forward recommendations for a fundamental shift in both federal and provincial policies in order that Canada's mineral reserves can be developed in the national interest. This article consists of excerpts from the summary of the task force's report."

Jan 1, 1977

By S. H. Ward

An account of a new method of investigating the electrical .properties J the earth's crust is presented. The method, called AFMAG, employs, as a source, natural alternating magnetic fields of audio and sub-audio frequencies. Measurements of the distortion of these fields caused by geological features are made with the aid of search coil detectors at several discrete frequencies. Many results of field surveys made with the method are presented and they illustrate its advantages and limitations when applied to the search for massive sulphide mineralization. The advantages far outweigh the limitations and in fact indicate that a major breakthrough in geophysical exploration technique and instrumentation has been made.

Jan 1, 1958

By Robert B. Parsons

"The tax reform process marches on. The December 16, 1987 measures tabled by Finance Minister Michael Wilson represent one more step toward the objective of total reform of Canada's income and sales taxes. While the income tax changes are taking shape, much work still needs to be done on the sales tax side of the coin.IntroductionOn December 16, 1987 Finance Minister Michael Wilson tabled measures to implement the changes to Canada's income tax system that were proposed in the June 18, 1987 White Paper on Tax Reform. The measures were set out in a Notice of Ways and Means Motion; draft legislation relating to preferred shares, research and development expenditures; and draft regulations regarding capital cost allowance, certified films, flow-through shares, and the resource sector. The reaction of the government to the recommendations made by the Finance and Economic Affairs Committee Report on Tax Reform (the Blenkarn Committee), the Report of the Standing Senate Committee on Banking, Trade and Commerce and through consultations with interested groups and organizations, business, labour and individual Canadians is set out in a booklet of supplementary information.The basic features of the reformed income tax system set out in the White Paper remain. However, a number of significant changes have been incorporated in the Notice of Ways and Means Motion and other material. The following comments address those area s where changes have been made to the original White Paper proposals."

Jan 1, 1988

By William D. Macdonald

The Upper Devonian Kettle Point black shale of southern Ontario is poorly exposed. Structural maps pre-pared from the data of numerous wells show that the upper surface of the formation has low regular relief, and that the lower surface reflects domes in the Middle Devonian and also local subsidence of the Devonian rocks due to solution of salt in the Silurian Salina Formation. The appearance of minor amounts. of marcasite, pyrite, and calcite, m that order, as interpreted from the evidence of concretions from the type locality at Kettle Point is thought to have been influenced by a rise m the pH within anaerobic sediments preceding compaction.

Jan 1, 1960

By A. E. Soregaroli, H. D. Meade

"The Keystone porphyry molybdenum deposit, located in southcentral British Columbia, is hosted by intrusive rocks of the Cretaceous Mount Lytton batholith and the early Tertiary Keystone quartz diorite stock. The molybdenite mineralization is associated with rhyolite porphyry dikes flanking a large 1300 m by 2100 m breccia complex. Recognition of the potential for the buried molybdenum porphyry system was based on quartz-molybdenite vein fragments within the hydrothermal breccias.The full extent of the molybdenum mineralization is not known. The few deep drill holes along one comer of the breccia complex defines strong metal zoning of molybdenum and associated elements of F, Mn, Zn, Pb, Au, Ag, Fe and W about the molybdenum stockwork mineralization that may be useful for guiding additional exploration. The best mineralization occurred near the base of the deepest drill hole with 0.114% Mo in rhyolite porphyry near the edge of the breccia pipe at a depth of 1350 m.The exploration history of the deposit has been complex, focussing on both porphyry-style mineralization and precious metal veins and stockworks on the periphery of the porphyry system. Exploration to date has defined an attractive porphyry molybdenum system with uneconomic grades at great depth; however, there remains significant potential to define economic mineralization elsewhere in the Keystone porphyry system and adjoining occu""ences."

Jan 1, 1995

By Walter F. Atkins

Fair market value, in the legal sense , is the price which a prudent and knowledgeable buyer and a prudent and knowledgeable seller, acting without constraint or compulsion , will agree upon to exchange an asset. In the ordinary commercial or engineering usage, the term may imply simply the market value or a reasonable and equitable price. The engineer evaluator who is called upon to express an opinion about the fair market value of an asset may be able to base his estimate on the sale price of similar assets or on the market values of stock. Frequently such indicators of value are not available and the evaluator must devise other means of appraisal. Mineral resource properties may be thought of as having value by virtue of the existing or potential ability to produce at a profit. Conventional procedures permit the computation of the present value of future revenues having due regard for the time value of money and the risks attendant upon the realization of the venture. Such computations have gained wide acceptance as a basis for the estimation of fair market value.

Jan 1, 1977

By J. W. Baker

"The Kerr-Addison mine is on the northeast shore of Larder Lake in the township of McGarry, District of Timiskaming, Ontario. It lies just south of the highway leading to the town of Kirkland Lake, 25 miles to the west.The property was first staked in the summer of 1906, by a party of prospectors led by a Dr. Reddick of Ottawa. Subsequent assessment work resulted in the erection of a 20-stamp mill in 1908. Gold from this mill was used in the first gold coins to be minted in Canada. The operation did not prove successful, however, and mining was suspended. In 1914 a consider-able amount of underground development was undertaken by the Associated Goldfields Co., without success.In 1936 Kerr-Addison Gold Mines Co. carried out large-scale sampling from four adits driven into the hillside at the mine. Results were not satisfactory, but it was decided to drill one last deep diamond drill hole from surface. The hole cut a wide section of gold ore. With this encouragement, further development outlined a large tonnage of ore, and a 500-ton mill was put into production in May, 1938. In 1939, its first full year, the mine produced 54,480 ounces of gold and 2,732 ounces of silver. By 1955 the mill had been expanded to a rate of 4,549 tons daily, and in this year 427,193 ounces of gold and 23,490 ounces of silver were produced.From 1938 to the end of 1955 the total production, from 17,473,797 tons milled, has been 3,607,462.74 ounces of gold (0.2064 ounces per ton), and 182,278.56 ounces of silver, with a total value of $131,073,037."

Jan 1, 1949

By G. Lipsett, S. Dessureault

Information technology (IT) initiatives in the past have tended to be sold on their ability to maximize resource output and return on capital by allowing assets to be used more effectively and efficiently. Many IT projects fail, not delivering return on their investment. This is known in the IT industry as the “productivity paradox,” where increasing investments in IT do not result in comparable increases in productivity. Experiences and studies of most business sectors reveal that this paradox is rooted in the false assumption that more IT spending automatically results in financial benefit, whereas the benefits are in how effectively IT is used. Most business sectors have accepted that re-engineering of processes is required to gain the full benefits promised of IT. A mining operation has organizational processes similar to most business sectors, but unique operational processes. The lessons of changing business practice in more common business processes, such as inventory control and customer-supplier relationships, can be adequately transposed into a mine setting. The unique operational processes in mines, in turn, require unique redesign efforts. Several enabling information technology opportunities have recently become available, such as more integrated mine production management systems and tactical manager training simulators. This paper reviews some of the latest IT products and outlines the processes and kinds of change that will be required in order to benefit from these new investment options.

Jan 1, 2009

By M. C. Makepeace

"It is the objective of designed experiments to obtain more information for less material and process cost than can be obtained by traditional experimentation. In this paper, the fundamental concepts on which the statistical design of experiments is based are briefly re-viewed according to the following outline: The Experiment The Design The Analysis Two simple 2"" factorial experiments are presented as examples."

Jan 1, 1967