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By Thomas D. Kaufmann

Introduction What drives the price of gold? Supply and demand, of course. But in ways far different from the forces that drive the prices of other major metals, such as steel, aluminum, and copper. Gold, in fact, is one of the few commodities where both buyers and sellers are happy when the price goes up. Current production, production costs, and variations in production have little influence on its price. Gold inventories are so tremendous that current production has small impact on the amounts available to the market at any time. Worldwide gold inventory and production The world's inventories seem to be between 78 and 98 kt (2.5 and 3 billion oz). Since biblical times, the gold miners of the world have produced about 98 kt (3 billion oz), mostly in this century. Only small amounts have been thrown away and most of it - more than 78 kt (2.5 billion oz) - remain in bullion, coins, or jewelry. About 40% is held by central banks and other governmental authorities, 30% by private individuals as bullion or coins, and about 30% as jewelry. Except for some of the jewelry and the few industrial applications, this inventory is constantly available in marketable form at a price. By comparison, gold production is indeed small. The US Bureau of Mines estimates that the world produced 1.5 kt (50 million oz) of gold in 1986. Consequently, production increased world inventories by only 2%. Variations in production have a negligible or very short-term effect on the supply and, consequently, on the markets for gold. Although South Africa mines about 40% to 50% of the world's annual production, continuing labor strife there does not seem to have ruffled gold prices. Determining gold's price Gold prices, however, do determine cutoff grades in the mines and, thus, do influence production. Nonetheless, changes in production have little impact on the inventory supply. Consequently, it has small influence on the price of gold on the market. With a fairly stable supply, price changes are driven by changes in its demand. Unlike other metals, very little of the demand for gold comes from industry. Dental, electronic, and other industrial uses for gold consume less than 46.6 t/a (1.5 million oz per year). It would be safe to assume that such uses are less than 124 t/a (4 million oz per year) for the entire world. Variations in the 124 t (4 million oz), compared to a supply of 78 kt (2.5 billion oz) of supply can have only a negligible effect. Production net of industrial uses adds perhaps 1% annually to world inventories. This could, in time, affect markets. The increase, however, is mostly absorbed by population growth - more people wanting to own gold - and by gold being put in more attractive forms, such as coins. As an ancient Lydian king discovered, minting bullion permits

Jan 9, 1987

By Ana Chiquini, Clayton V. Deutsch

The most common approach used in the mining industry for mineral resources modeling is to estimate the grades using ordinary kriging and report the recoverable resources based on this deterministic estimated model. Mineral resources calculated with kriging are a smooth representation of the actual distribution of grades and do not provide an assessment of uncertainty. Unlike kriging, simulation reproduces the variability of the grades in the mineral deposit and provides an assessment of uncertainty. Reporting mineral resources directly on high-resolution simulation results would assume perfect knowledge of the grade at the time of mining and selectivity at the scale of the data. There will always be uncertainty left at the time of mining, so assuming perfect knowledge of the grade in the future is incorrect. There are two concerns when geostatistical simulation is used for resources modeling: the information and the mining selectivity effects. A new framework for resource estimation is proposed with two separate modules to address those concerns. The information effect is accounted for by anticipating the additional production data that will be available at the time mining to guide the destination for the mined material. The mining selectivity effect is addressed by mimicking the grade control procedure to get mineable dig limits at a chosen selectivity, represented by a minimum mineable unit size. In addition to a prediction of recoverable resources that will be closer to the material mined in the future, the framework proposed provides an assessment of local and global uncertainty for risk management.

May 26, 2020

By F. Mielli

Camera systems and video surveillance are usually associated with people and asset protection. However, they can be applied in a mine environment beyond conventional surveillance: For process monitoring, collision avoidance, sizing, flotation cells, conveying systems, blasting, objects and people tracking, thermal profile, and to automatically identify equipment that is missing parts,. Image and video solutions can be driven by better integration of powerful video analytics and cameras systems in automation tools such as process controllers and supervision systems.

Feb 27, 2013

By S. Garcia, J. Gebhardt, D. McBride, A. Hernandez, A. Esplín, M. Cross

The Minera Yanacocha operation consists of several heaps interconnected with ponds and gold recovery plants and presents various operating challenges. A comprehensive process model has been developed in order to better understand the effects of certain operating parameters and inventory issues. An integral component of the process water/mass balance is a model of each heap that describes heap behavior based on the individual characteristics of the heap. The heap models are linked to a mass balancing program in order to track flows and concentrations throughout the circuit. A case study of the process heap model is presented for the La Quinua heap, including results for the normal base line operation and several operational problems such as loss of solution flow to the heap (i.e., pump failure), increased flow to a section of the heap (i.e., pond volume control), effect of significant rain events, and impact of a change in material properties (i.e., change in ore type). The impact on heap operating efficiency is discussed with regard to effects on recovery and gold solution grades.

Jan 1, 2007

By A. F. Marques

The Azores islands are located on a triple junction where the American, African (AFR), and Euroasian (EUR) plates meet. The Mid-Atlantic Ridge (MAR), oriented N-S, represents two branches of the T; an E-W branch defines the EUR/AFR boundary called the Terceira Rift. The nature and structure of this plate boundary, as well as the dynamics of the interaction of tectonics and volcanism remain unconstrained. The Azores plateau is seated on a mantle domain of anomalously low seismic S-wave velocities, and gravity and geoid anomalies, where the apparent thick crust is thought to relate to larger degrees of melting initiated at greater depths [1]. The cause of these anomalies is controversial but many authors consider the presence of an anomalously hot/wet enriched mantle probably supplied by a plume [2]. The geochemistry of the subaerial and most submarine lavas from the plateau reinforces the plume model beneath the Azores [3-4]. The origin, size and present location of the plume is under debate but an area near Terceira is the favoured plume centre [5]. [ ] SEAFLOOR HYDROTHERMAL SYSTEMS IN THE AZORES AREA (36ºN ? 40ºN) More than 150 active and fossil hydrothermal systems are known in the oceanic seafloor [6]. Many more are yet to be found on vast oceanic areas that haven?t been explored [7]. Ever increasing knowledge shows that modern seafloor hydrothermal systems can be hosted in felsic to ultramafic rocks, vary in size and shape and exhibit diverse amounts of sediment cover

Jan 1, 2011

By Richard Belair, John Read

Ask someone what they can tell you about the Royal Canadian Mint and most likely the first thing that they will mention, is coinage. The Royal Canadian Mint manufactures Canada's one-cent coins, nickels, dimes and quarters - over 1 billion per year. Most of these coins use copper and nickel as base material, and all of this metal is mined, refined and processed in Canada prior to being shipped to the mint for coin production. In 1985 alone, 1270 metric tons of Canadian nickel and 2160 metric tons of Canadian copper were absorbed in circulating coinage. July 1987 will have marked the introduction of Canada's new one dollar coin, an important new addition to Canada's monetary system. The first phase of this program will consume about 2,235 metric tons of Canadian nickel in the initial production run. Annual requirements in subsequent years are estimated at 225 metric tons. The Royal Canadian Mint is also a major producer of circulating coinage for foreign countries. Since the state-of-the-art Winnipeg plant swung into full production in 1976 the Mint has struck more than 5.2 billion coins for some 35 nations around the world. 1985 sales have increased almost 6 fold over 1984. 1987 already shows commitments for a further significant increase in volume in this business. The use of Canadian metals in export to foreign nations as coinage adds still more to the Royal Canadian Mint's key role as a major market maker for Canada's mining industry. The success of the Mint in this realm can be directly traced to it's 75 years as one of the world's most important refiners of gold. Today, the Royal Canadian Mint is the largest refiner of gold in the Western Hemisphere, and the third largest, by volume, in the world. The R.C.M. hallmark on kilo bars, 100 troy ounce comex bars

Jan 1, 1987

By Jack E. Brockway

As tunnel boring machine technology has expanded, so has its range of application. Tunneling machines (TBM's) are tackling tasks today that fifteen years ago were considered "inappropriate". A case in point is incline/decline TBM boring. An incline or decline bore presents peculiar design considerations that differentiate it from a horizontal bore. This paper reviews those design considerations as they apply to TBM's, backup, muck handling and other tunneling subsystems. In addition, several abbreviated case studies are presented. By the review of real life tunneling techniques as well as design considerations, the "appropriateness" of TBM incline/ decline boring today becomes apparent. INCLINE Introduction In contemplating the impact of incline versus horizontal tunnel boring system design, the obvious consideration is gravity. Up-hill boring can be quite different than horizontal boring. Muck, water and machine weight all tend to slide down the incline. In addition, hydraulic and lubrication systems if unaltered, will find their fluids pooled in the lower corners contentedly ignoring such higher elevation items as gears and bearings. In order to address this inherent gravity problem, a review of

Jan 1, 1983

By D. Robert Weir, M. J. H. Ruscoe, R. M. Berezowsky, M. A. Clegg

The metallurgical processing involved in the produc-tion of the new Canadian one dollar coin is reviewed starting with the hydrometallurgical production of pure nickel powder, followed by the powder metallurgy process for the production of nickel strip and coinage blanks, and concluding with the Aureate bronze electroplating and heat treatment procedure. Coinage requirements are then reviewed with regard to economic, public acceptance, and service requirements. Finally the properties of Aureate nickel coinage are presented in the light of the many and varied coinage requirements, and it is concluded that the new Canadian dollar coin exceeds the requirements admirably.

Jan 1, 1990

By A. Choudhury

Deep open-pit mines are becoming increasingly common in the highly mineralized arctic and sub-arctic regions. Air inversion is a frequent occurrence in these regions, and is exacerbated by the natural topography of an open-pit mine. Due to such inversions, the air quality in open-pit mines deteriorates very rapidly. Transport of gaseous pollutants under arctic air inversion is complex and involves an interaction between flow, thermal and convective transport systems. This paper discusses the construction and validation of a three-dimensional model that simulate the flow of air and the transport of gaseous contaminants in an arctic open-pit mine and the effect of low influent velocity and large gust velocities on the contaminants profiles in the mine. It was found that while higher velocities may remove contaminants from the pit bottom, they may not remove the contaminants from the pit entirely, necessitating artificial mitigation measures.

Jan 1, 2012

By William L. Young

There is an old saying in Canada: "Mines are made as much as discovered." What follows is Young's perception of his experience developing and financing the Cochrane Hill gold mine project. In 1974, I came back from rutile and zircon exploration and mining in Australia. I became interested in a copper, lead, and zinc project in the Bathurst District, New Brunswick. Much field work had already been done but I was convinced that a reinterpretation of the geophysical work left room to enlarge on the known mineralization. So, with my own money I put a property deal together, found an underwriter willing to raise $100,000, and had a lawyer produce a prospectus. The prospectus was ultimately accepted for filing by the Ontario Securities Commission and I acquired funding and began work. It did not take many drill holes to determine that the interpretation was not geologically valid. However, while drilling was going on, geophysical and geochemical explorations indicated interesting anomalous zones elsewhere on the property. But by now the base metal market climate had soured and the $50,000 I had left was not enough to evaluate the new results. So I decided to farm out the property. A data folio was produced and the property was optioned to a major mining company, with Northumberland Mines Ltd. retaining a 20% free, carried interest. By 1976, the market for junior issues was so bad no under¬writer would even talk to a geologist and I still had the $50,000 in the bank and was looking for something to initiate. A Project That Went Nowhere Market research indicated that the Toronto area imported fine calcium carbonate fillers from Georgia, Alabama, and Vermont. I was aware of the specs and the fact that there is a large marble belt in Eastern Ontario. After some prospecting, I found an interesting deposit. The product was slightly high in silica and low on brightness. Research work eliminated the silica and corrected the brightness. So, with insufficient money we launched a feasibility study. This included diamond drilling, bulk sampling, special fine grinding and air classification tests, and an in-depth market survey. Our product was as good or better than those on the market. Our advantage was that delivery could be made by a two-hour truck haul to the customer. The present system of rail delivery had many problems, especially in winter. Despite everything looking rosy, we ran into a stone wall. The underwriters were singularly unimpressed because the public saw little glamour in a substance most people had never heard of. The issue would have been difficult-if not impossible-to sell. Banks and government agencies took the position that if we could get long term take-or-pay contracts then they would lend the required capital. None of the suppliers, however, would even consider a contract until production had begun and they could evaluate the production material. It was a classic "catch 22" situation. I have gone into this in some detail to show how tough the industrial mineral market can be. We eventually optioned this calcium carbonate property to a major corporation. The option agreement would give us a free, carried 15% and the right to buy up to 40% for contributing 25% of the production costs. But the experience left my company in poor financial shape. To survive, I think the entrepreneur-geologist must always have at least one project in reserve, an emergency plan. I had been searching out a new project to work on, after the calcium carbonate option was wrapped up. It was gold. Gold intrigued me and I knew quite a bit about Nova Scotian gold. I felt that with any rise in price, many of the former high-grade gold mines would have interesting potential for the larger, low grade portions of the deposits. That is how I happened on Cochrane Hill, where much work had been done in the early 1970s when gold as $4.82/g ($150/ oz). This time my timing was good. No sooner had Northumberland signed an option agreement than gold prices started to rise. In six months, they went to $27.331g ($850/oz). Even so, financing gold prospects in early 1980 was still not easy. It had been years since gold financing had been undertaken. A whole new generation of investors, with no knowledge of gold mining, had grown up. So, with accounting and legal council, we decided on a semiprivate "seed money" offering. Under the new Ontario Securities Act, this was a new-and partly tax sheltered-concept. At the time, it was very innovative.

Jan 6, 1982

By Russell B. Dix

Laboratory column leach tests are used routinely to evaluate gold and silver ores for heap leaching. The tests are fairly straightforward. The ore to be tested is placed into an appropriately sized leach column. Then an alkaline cyanide solution is applied to the ore and the effluent solutions are collected. The effluent solutions are then put through a column of activated carbon to recover the gold and silver in solution. Zinc precipitation may also be used for silver ores or if the ore contains a significant amount of soluble silver in addition to gold. The length of the leach time in the tests is mainly a function of how quickly the precious metals are recovered from the ore. At the completion of the tests, the tailings are assayed and the recoveries determined from the calculated head grades. The amount of ore to be used for a test is partly a function of its crushed size. The coarser the size, the larger the sample size for the column. A typical small-scale laboratory column test on ore crushed to -12 mm (-0.5 in.) would usually be conducted in a 100- to 150-mm-diam (4- to 6-in.-diam) column 2 m (6.6 ft) in height, containing about 20 to 45 kg (44 to 99 lb) of ore. A comparable test on the same ore crushed to 50 mm (2 in.) would be conducted in a 200- to 300-mm-diam (8- to 12-in.-diam) col¬umn 2 m (6.6 ft) in height, containing about 80 to 200 kg (176 to 441 lb) of ore. Larger-scale tests can be run by increasing the column heights and diameters. Conducting larger-scale tests results in increased costs for sample procurement, preparation, and running of the tests. The additional data obtained from

Jan 1, 1989

By Douglas W. Fuerstenau, Pradip Pradip

The design and development of selective flotation collectors has been the key to the remarkable success of flotation in beneficiating complex, difficult-to-process ores. Sustained research efforts in the field over the past hundred years have led to delineating the scientific basis of selective mineral flotation in terms of the crystal chemistry and the surface and colloid chemistry of minerals including their solubility, and the aqueous solution chemistry of added reagents. It is now well-established that the electrical double layer theory (EDL) is the most powerful means of quantifying the relative strength of mineral-reagent interactions in the case of nonsulfide minerals. We illustrate the utility and the power of the EDL in delineating the science underlying selective mineral flotation with the help of a few examples taken from our own work, in particular on the selective flotation of rare-earth minerals (bastnaesite) from associated semisoluble minerals (barite and calcite) using alkyl hydroxamate collectors and the flotation separation of lithium-containing minerals (spodumene) from associated alumino-silicate minerals with oleate (fatty acids). Both of these mineral separation systems are of contemporary research interest and of immense value to the industry today. Recent advances in utilizing molecular modeling computations, particularly in the context of quantifying the effect of crystal chemistry and the relative distribution of adsorption sites available on mineral cleavage planes, are also reviewed.

By G. T. Austin

This is an overview of the gemstone industry with special attention on particular states within the united states. The U.S. Bureau of Mines, Department of the Interior compiled and analyzed the information contained in this report. The report should be viewed as a current "still photograph" of a dynamic system. The information presented on a specific gemstone or for a specific state can and will change with time. This overview presents historical and reference information on the principal gemstones and their production in certain states. The report is not a definitive work on gemstones within the select states or United states.

Jan 1, 1995

By F. Mielli

Ranging between 20% and 40% of the typical mining operational costs, energy in mining operations is a growing concern for the industry. However, this concern is a complex, multi-faceted variable that involves government regulations, societal pressures, cost and competitiveness. A mining company successful in energy efficiency is becoming the standard of a successful company. The suggested energy strategy in mining and mineral processing operations has to follow a well structured approach that entails the following: ? Understanding where energy is being used and why, ? Recommending and implement energy conservation measures, ? Driving visibility to targets and results, ? Leveraging the energy spend across the enterprise, ? Developing a robust energy and sustainability strategy.

Jan 1, 2012

By George H. Willis

In the second half of the nineteenth century, bimetallism progressively replaced by gold standard. After World War I and 1931-33 depression, gold mainly reserved for official international transactions and internal use restricted. Changes since 1971 have shrunk official international use of gold. International payments deficits and surpluses now financed by private and official credit, rarely by gold. Historical review covers evolution of: (1) internal and external private use, (2) internal official use, (3) external official use, (4) role in IMF and (5) use as unit of account.

Jan 1, 1978

By Michael Rieber

Mineral economics interfaces the mineral sciences and engineering with finance and economics in the analysis of appropriate questions facing the minerals and energy industries. Its practitioners include those trained in the earth sciences; mining, petroleum, and geological engineering; metallurgy and mineral preparation; as well as finance, information systems, economics, and statistics-most usefully in one or more combinations. Allowing for some overlap, three general areas may be identified: evaluation, economic analysis, and resource appraisal. Evaluation begins with mine investment analysis (exemplified by Gentry and O'Neil, 1984) and process costing, for which the STRAMM Handbook (Anon., 1977) provides a well-known basis for mining and beneficiation. But it extends from property appraisal, often used for the determination of taxes and royalties, through the determination and comparison of transport costs (e.g., Richer and Soo, 1977), and to benefit/cost analyses of externalities. Economic analysis, the subject of this section, is displayed in rigor and extent both theoretically and as applied to commodity classes in Vogely (1985), but it is implicit though apparent throughout Lefond (1983). The text edited by Vogely places minerals in their aggregative context with economic growth and trade, proceeds to the theoretical analysis of minerals and their markets, analyzes the structure and performance of the major mineral sectors, and concludes with policy issues: fuel, nonfuel, and environmental. Resource appraisal employs quantitative methods for the estimation of mineral and energy resources. It moves through geologic, geophysical, and geochemical properties to the identification of estimation procedures for mineral endowment and for the economic measure of stocks and flows of specific minerals (Harris, 1984). It can be used to estimate the probable amount of a specific resource remaining in a given region and has been used to project sites in a specific

Jan 1, 2008

By Mark Lawshe, Shosie Serata

The conventional method of mining underground, using narrow rooms and wide pillars, has proven to be poorly adapted to the powerful earth forces that act on underground openings. The high costs of roof bolting, timbering, steel arching, and other means of artificial roof support for both room-and--pillar operations and longwall gate roadways attest to the limitations of traditional mine design. Too often, productivity halts when corners buckle under "cutter roof' stresses, floors heave, and roof strata fall. In the 1960s, an entirely different approach to strata control was developed. The Stress Control Method (SCM) stabilizes failing roofs and heaving floors by removing the cause of failure - highly concentrated stresses around the openings. This is achieved by regrouping three to 10 rooms into a single entry where the rooms are separated by very narrow yielding but stable pillars. SCM employs a specified excavation sequence to redirect earth pressures away from the mine openings. The yield pillars act as scaffolding until a permanently protective secondary stress envelope forms around the entry (lower part of Fig. 1). The result is a dramatic improvement in roof stability and a significant reduction in artificial support costs. Some roof bolting must still be done, mainly to meet Mine Safety and Health Administration (MSHA) requirements. Potash, salt, coal mining The stress control method was first applied to the deep potash mines of Saskatchewan. The new SCM design actually increased room widths to enlarge the stress envelope, redistributing the stress concentration away from the entries (Serata and Schultz, 1972). This resulted in a turnaround from pervasive roof fall/floor heave conditions that threatened operations in the eight new mines opened in the Saskatchewan potash field during the 1960s. In addition to eliminating all roof bolting, SCM successfully stabilized ground conditions and substantially increased productivity over the original design (Serata, 1976, 1982). Similarly, the deep Boulby potash mine of Yorkshire, England, was about to close after various conventional means of combating roof failure had failed. An SCM test area was excavated that resulted in the ground quickly stabilizing without need o artificial support (Serata, 1982; Chilton and Laird, 1982). Another example is the Diamond Crystal salt mine in Louisiana. Here, multiple level mining was being extended from the third to the fourth level downward in the Jefferson Island salt dome. Extensive roof failure was occurring at 396 m (1300 ft) ii the third level. SCM design principles in creased the room size from 24 to 49 m (80 t( 160 ft) on the fourth level at a depth of 457 m (1500 ft). This unprecedented expansion of room width was first questioned and later ap¬proved by MS HA, which expressed satisfaction in seeing the improvement documented by field validation data in 1973. The most recent SUM application to salt mining has been in the Michigan Basin a: Goderich, Ontario. The anticipated abandonment of Domtar Chemicals Group/Sifto Salt Division's deep operation in bedded sale was prevented by a multi-year SCM implementation. The success of SCM in dry mining[lecc] to its application to solution mining of salt This adaptation of the method is now being implemented in bedded salt at Fort Saskatchewan, Alberta by Dow Chemical Co., and in St. Clair, MI by International Salt Co. Application of SCM to solution mining in a salt dome is proceeding at Napoleonville. LA by Dow Chemical. The same technology has also been applied to cavern design for the Louisiana Offshore Oil Port (LOOP), and the compressed air energy storage (CAES)

Jan 1, 1989

By F. Habashi

The peninsula that lies between the Black and Mediterranean seas, called Asia Minor by the Romans and Anatolia by the Greeks, was one of the crossroads of ancient civilizations. The fall of Constantinople in 1453 was a turning point in the history of mankind. Visits to Istanbul, Ankara, Eskisehir, Cappadocia, and Trabzon will be given together with the history of the country. Mineral resources of the country will also be briefly outlined.

Feb 23, 2014

By Bo Forsman

METAFORA is a simulation model for determination and evaluation of strategies for operating loader/truck systems in mining. A specific version of METAFORA was used to evaluate the haulage system at Solider Mineral's Aitik mine in northern Sweden, one of the largest open pit mines in Europe with a production of about 11.5 Mtpy (about 34000 tpd) of copper are. A production level of 34065 tpd was estimated by simulation runs with METAFORA. Using METAFORA's dispatch rules (Fixed Dispatch, Maximize Trucks, and Maximize Loaders), the truck/shovel system in the Aitik mine was simulated for evaluating alternative dispatch control strategies. The Maximize Trucks rule gave about the same total production (ore + waste) as the Fixed Dispatch rule but a 9% higher ore production. The Maximize Loaders rule gave the lowest production. The marginal truck capacity decreases with increasing number of trucks serving the same loader due to increasing waiting times. In Aitik mine the low crusher capacity results in long dumping times. If the dumping time at the crusher could be halved, the ore production would increase by 14%. The paper indicates that the use of software like METAFORA can result in a substantial reduction of time, effort and cost in shovel/truck system design and evaluation.

Jan 1, 1992

By Michael A. Piepenburg

The East Side Access (ESA) Project will extend Long Island Rail Road (LIRR) into midtown Manhattan via 11 km of tunnels, a new terminal station and associated support facilities. In addition to the hard-rock tunneling currently underway in Manhattan, soft-ground tunnels in Queens will traverse beneath Amtrak?s Sunnyside Yard and Harold Interlocking, the busiest rail interlocking in North America. This paper details ESA?s coordinated approach to interfacing with both Amtrak and LIRR with regard to the planned tunnels, shafts and related construction beneath or adjacent to the operating railroads. This interface includes integration of railroad staff, extensive presentations, reviews and agreements with the railroads regarding settlement mitigation, real-time automated geo-instrumentation monitoring, ground improvement, and geotechnical/environmental controls.