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"The main purpose of geometallurgy is to develop a model to predict the variability in the mineral processing performance within the ore body. Geometallurgical tests used for developing such a model need to be fast, practical and inexpensive and include as an input data relevant and measureable geological parameters like elemental grades, mineral grades and grain size. Important in each geometallurgical program is to define the number of samples needed to be sent for geometallurgical testing to enable reliable metallurgical forecast. This is, however, a complicated question that does not have a generic answer.To study the question on sampling a simulation environment was built including a synthetic ore body and sampling & assaying module. A synthetic Kiruna type iron oxide - apatite deposit was established based on case studies of Malmberget ore. The synthetic ore body includes alike variability in rock types, modal mineralogy, chemical composition, density and mineral textures as its real life counterpart. The synthetic ore body was virtually sampled with different sampling densities for a Davis tube testing, a geometallurgical test characterising response in magnetic separation. Based on the test results a forecast for the processing of the whole ore body was created. The forecasted parameters included concentrate tonnages, iron recovery and concentrate quality in terms of iron, phosphorous and silica contents.The study shows that the number of samples required for forecasting different geometallurgical parameters varies. Reliable estimates on iron recovery and concentrate mass pull can be made with about 5-10 representative samples by geometallurgical ore type. However, when the concentrate quality in terms of impurities needs to be forecasted, the sample number is more than 20 times higher. This is due to variation in mineral liberation and shows the importance of developing techniques to collect qualitative information on mineral and ore textures in geometallurgy."

Jan 1, 2016

By A. Allaire

The Goldex operation of Agnico-Eagle Mines (AEM) commenced operations in the spring of 2008. Following some months of initial operation, the grinding circuit capacity was under-performing according to the original design throughput. BBA Inc. (BBA) was commissioned, in February 2009, to study the different options and recommend the quickest and most cost-effective solution to increase the grinding circuit throughput rate. The mandate was to increase the throughput of the grinding circuit to beyond the original design of 7,000 tpd to 8,000 tpd or greater, while retaining the existing SAG and ball mills. The circuit was modelled using JKSimMet software to evaluate the different options, each with a number of different operating parameters. The option of secondary crushing of the SAG mill feed was retained. Comparison of the different options and simulation outcomes, design of the secondary crushing circuit, operating conditions, and initial adjustments in the design and operating results of the new grinding circuit are discussed in this paper.

Jan 1, 2012

By C. Robinson

The Diavik Diamond Mine is located in one of the most remote and forbidding places in the world, 220 kilometres south of the Arctic Circle and on the bed of a vast northern lake, Lac de Gras. A single road, built out of ice and crossing frozen lakes, connects the mine with other operations and Yellowknife, the capital of the Canada's Northwest Territories. Diamonds were first discovered in the Lac de Gras region in the early 1990s, and construction of the Diavik Diamond Mine was completed in 2003. Diavik currently mines three kimberlite pipes. Open pit mining has now concluded and all three pipes are mined using underground mining methods. In early 2010, Diavik began mining and processing initial ore from its new underground mine; underground mining operations are expected to continue beyond 2020. The initial mine ventilation system was an exhausting (pull) system with fresh air supplied by a fresh air raise and a main ramp. Return air was exhausted via two raises and a secondary ramp. The system had a total flow capacity approximating 401-411 m3/s. With planned increased production and with changes in mining method, it has been proposed to change the mine ventilation system to a positive (forcing) ventilation system in order to meet projected increases in flow requirements of 566-708 m3/s. Extensive engineering work was developed in order to successfully achieve the changes in system configuration. In the proposed configuration, the main ramp is in an exhaust configuration and exhaust raises are converted to fresh air raise. A number of system implementation options were investigated and phased plans for system execution have been developed. The proposed changes to the ventilation system are substantial and involve extensive construction work. Work was commenced in 2011, each planned phase has been successfully completed to date, and system changes continue today in order to achieve complete system flow reversal and increased flow distribution. This paper details the design of the modified ventilation system and commissioning work which will allow the mine to meet its future production targets.

Aug 1, 2013

By David Forrester

"At the 95th CIM Annual General Meeting in Calgary, 1993, a paper entitled “Progress on Futuristic Mining Technologies” was presented(Matthews and Sarin), in which they outlined the goal of continuous excavation of hard rock and some of the technologies being developed to achieve it. The subject continues to be featured in periodic reviews and articles in the literature, (Gertsch, 1994; E&MJ, 1995). Matthews and Sarin note the considerable success of the development and application of continuous mining technologies in the soft rock under-ground mining industry, especially those in coal and potash, with major benefit to overall production, productivity and economic viability. It is the belief that similar achievements can be realised in the underground hard rock mining which continues to drive the development of hardrock continuous mining technology.This overview has been prepared specifically for this issue of the CIM Bulletin. It attempts to tie together current advancements in continuous mining in soft rock (where remote control and automation are already well established) with the background and status of development in hard rock continuous mining. Following a brief review of key factors and machine types, soft rock aspects are discussed, then a more detailed review is given of hard rock technology, with particular reference to Canada’s HRDK Mining Research Ltd. and their key role.The mining industry has long been at the forefront of technology development, for example, the application of the early steam engine to reach reserves at greater depth for dewatering mines in the industrial revolution. By necessity, the individual characteristics of seams and orebodies dictate the mining method, continually presenting mining engineers with new challenges. One of these is the extraction process itself and the goal of replacement of the drill-blast-muck cycle by continuous excavation. Very soft rocks have always been mineable using some form of cutting, even with primative tools. However, as the challenge has been taken up, technologies have evolved to steadily increase the hardness of rock that can be mechanically excavated. It may surprise some readers that at least three machines have successfully cut and loaded rock with an unconfined compressive strength (UCS) of 250 Mpa to 300 MPa (36 000 to 43 500 psi) in field trials (Table 1)."

Jan 1, 1996

By Jean-François Dorion

In an underground mine rock reinforcement elements and surface support units are often exposed to conditions that make them susceptible to corrosion. These unfavourable conditions include high relative humidity, the presence of dust and various other particles in the atmosphere, splashing of water and gases from blasting and diesel equipment. The corrosion of support systems is often associated with a loss in capacity that can be a major safety and economic concern in underground mines. A support system is composed of several components such as bolts, mesh, plate, retaining nut, cable ties. Every individual component can deteriorate due to atmospheric or aqueous corrosion and consequently can damage the integrity of the support system. This paper reports the results of a 5-yr study on the loss in capacity of individual support and reinforcement components at selected underground hard rock mines. As part of this investigation corrosion coupons were installed at selected locations at participating mines. A number of these coupons were recovered at regular time intervals and analysed for any signs of corrosion and subsequently tested to quantify any loss in capacity. The testing of the corrosion coupons was complemented by similar tests on recovered mesh and friction bolt specimens from the site. The collected data have provided useful insights on the factors that contribute to the corrosion of support systems. This knowledge can aid in the selection of appropriate support strategies and a reliable assessment of the predicted useful life of a support system and the need for rehabilitation.

Jun 1, 2012

By Martin G. Wafforn, George J. Greer

"In early 2014, Pan American Silver Corp. commenced a project to construct a second shaft at its La Colorada underground mine located in Zacatecas State in Mexico. This was the first new shaft development project undertaken by Pan American Silver in the history of the company. The existing mine workings permitted the use of a raise bore for the excavation of the shaft opening, utilizing directional drilling in poor ground conditions to advance the pilot hole. This was an interesting project with many challenges and successes, and numerous lessons learned. The project was successfully completed in 2016, with the shaft operating at full mine production capacity within weeks. INTRODUCTION The La Colorada Mine has a long history dating from at least the 1920’s. The mine is located in the northern portion of Zacatecas State in Mexico in the Chalchihuites area, an approximate two hour drive south from the city of Durango. Pan American Silver acquired the La Colorada mining concessions in 1998, with mine production at that time consisting of only a few hundred tonnes per day. Over the course of the following 15 years, with the addition of an oxide processing plant and some expansions to the sulphide processing plant and site infrastructure, production was eventually increased to a maximum of 1,250 tonnes per day, all of it generated from conventional cut-and-fill stopes in the underground mine. An existing shaft was used to hoist the ore to surface, and over the years Pan American Silver had deepened the shaft and had changed out some of the hoisting plant. However, there were historic workings in close proximity to the shaft that made it unsuitable for personnel transport, and shaft maintenance was becoming difficult. The shaft was increasingly considered as a risk to the long term production continuity, and also to further deepening of the mine. In addition, expanding the capacity of this old shaft was not possible. Drilling of the La Colorada mineralization at depth commenced in 2010, with very good exploration success. As a result, by the end of 2013, the mine reserves had grown to a total of 6.5 million tonnes of high grade ore (388 g/t Ag, 0.36 g/t Au, 2.4 % Zn, and 1.3% Pb). Furthermore there were more (and higher grade) sulphide reserves than oxide reserves at depth. Following the completion of an internal study in 2013 with assistance from one of the international shaft contractors, a decision was made to increase the production from the mine with the construction of a new shaft and a new sulphide processing plant, a project with a calculated payback of 2.2 years."

Jan 1, 2019

By G. Reuben Yourt

This paper consists of two main parts. The first, under the heading Preparations, deals with suggested preparations to be carried out in advance so that loss of life might be prevented should a fire occur. The second part, under the heading Fire Procedure, deals with actual organized procedure to be followed for the preservation of life if and when a fire occurs. The writer realizes that these preparations and procedures may be to some extent applicable to only a few mines with a relatively simple vein system and that each mine would need to formulate a procedure to conform to its own particular conditions, scope, and degree of complexity. Preparations 1. - Ventilation Control The objective in ventilation control in the event of a tire underground is to keep the travelways, through which men must pass to reach surface, supplied with air not deficient in oxygen and free from gases and smoke. Without some control of the volume and direction of the main air currents flowing through the mine, the success of removing men to surface might be seriously hampered. ? This control is achieved by means of mechanical ventilation forcing air through desired airways and workings with the assistance of doors to regulate the volume and direction of the air flow. In connection with fans and doors, the possibility of short-circuiting should always be taken into consideration, as it can often nullify the value of a fan and possibly trap men in dangerous atmosphere if the short-circuiting involves the fire area. Main fans are often installed so that they can be reversed in a short time. However, fans should not be reversed unless this is found absolutely essential by those in authority. Misjudgment in this respect could cause the loss of life to men who might naturally take refuge in what they believe by experience to be a fresh air stream. Another precaution to be taken is to see that doors in airways are fastened in a fixed position so that they cannot be sucked or blown open when the fan is reversed, otherwise short-circuiting could possibly render the fan useless.

Jan 1, 1947

"NI 43-101 is a rule that governs how issuers disclose scientific and technical information about mineral projects to the public in Canada. The disclosure standards apply to oral statements as well as written documents and websites. NI 43-101 does not apply to disclosure concerning petroleum, natural gas, bituminous sands or shales, groundwater, or coal be methane. NI 43-101 first came into force on Feb. 1, 2001 and was revised in December 30, 2005. As a “National Instrument”, the law has been passed in each provincial and territorial legislature across Canada.“PART 1 DEFINITIONS AND INTERPRETATION 1.1 Definitions - In this Instrument “adjacent property” means a property(a) in which the issuer does not have an interest;(b) that has a boundary reasonablyproximate to the propertybeing reported on; and (c) that has geological characteristics similar to those of the property being reported on; “data verification” means the process of confirming that data has been generated withproper procedures, has been accurately transcribed from the original source and is suitable to be used; “development property” means a property that is being prepared for mineral production and for which economic viability has been demonstrated by a feasibility study; “disclosure” means any oralstatement orwritten disclosure made by oron behalf of an issuer and intended to be, orreasonablylikely to be, made available to the public in a jurisdiction of Canada, whether or not filed under securitieslegislation, but does not include written disclosure that is made available to the public only by reason of having been filed with a government or agencyof government pursuant to a requirement of lawother than securities legislation; “early stage exploration property” means a property that has(a) no current mineral resources or mineral reserves defined; and (b) no drilling or trenching proposed; in a technical report being filed in a local jurisdiction; “exploration information” means geological, geophysical, geochemical, sampling, drilling, trenching, analytical testing,assaying, mineralogical, metallurgical and other similar information concerning a particular property that is derived fromactivities undertaken to locate, investigate, define or delineate a mineral prospect or mineral deposit; “feasibility study” means a comprehensive studyof a mineral deposit in which all geological, engineering, legal,operating, economic, social, environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production; “historical estimate” means an estimate of mineral resources or mineral reserves prepared prior to February 1, 2001;“IMMM Reporting Code” means the classification system and definitions of mineral resources and mineral reservesapproved by The Institution of Materials, Minerals, and Mining in the United Kingdom, as amended; “JORC Code”means the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute ofGeoscientists and Mineral Council of Australia, as amended; “mineral project” means any exploration, development or production activity, including a royalty interest or similarinterest in these activities, in respect of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals;"

Jan 1, 2003

By A. Osouli, B. Moradi Bajestani

"Increase in permeability of rock mass is vital for both petroleum and geothermal applications. Hydraulic fracturing is a common method to create and increase the permeability for production. Due to the complexity of fracture propagation in a naturally fractured medium, understanding the interaction between hydraulic fracture (HF) and natural fracture (NF) is of great importance to optimize the fracturing process. The possibility of interaction between HF and NF is partly a function of orientation. Various scenarios are predictable for hydraulic fracture regarding the intersection with NF such as being arrested by NF, crossing NF or crossing the fissure while injecting water into it. Different parameters such as geomechanical and geometrical properties of surrounding rock mass, the operational parameters such as injection rate and the angle between created hydraulic fracture and natural fracture (approach angle) can affect the result of hydraulic fracture and natural fracture intersection. In this paper, using a series of flow-coupled Distinct Fracture Network (DFN) simulations, hydraulic fractures were analyzed to investigate the influence of the aforementioned parameters on the hydraulic fracture propagating. Results show that the most significant parameters affecting the interaction of natural and hydraulic fracture are orientation of the intersection as well as injection rate. The interaction and fracture propagation in NF and HF intersections are also studied and discussed in detail.INTRODUCTIONThe hydraulic fracture technology has substantially changed the oil, gas and geothermal industries. With the help of this technology, extraction of fossil resources from tight shale reservoirs will be economical, feasible and sustainable. Due to presence of massive oil and gas trapped in these reservoirs, this technology has been the center of attention for the past 40 years (King, 2012). Hydraulic fracturing is the process in which high pressure water is pumped into shale unconventional reservoirs with low to ultralow permeabilities. With this process paths are created in these mediums for delivering oil and gas to horizontal wellbore and increase the surrounding rock medium permeability. Economical and sustainable stimulation of these tight reservoirs is highly dependable on our understanding in regard to fracture propagation in the highly complex rock medium. Hydraulic fracturing process in rock mediums with preexisting natural fractures is more complex because of the high possibility of Hydraulic Fracture (HF) being arrested or deviated by Natural Fracture (NF). Also, HF and NF intersection can influence the required pumping pressure, injection rate, the outcome of horizontal wellbore and the affected geological underground zones. Since the 1950s, numerous studies have been conducted to predict and plan fracture propagation with the help of modeling and simulation methods. Having a thorough and accurate prediction of fracturing process will not only prevent stimulation of unwanted geological zones or pollution of aquifers, but also will improve the efficiency of the fracturing process. Previously, several studies have been conducted in order to investigate and analyze the interaction of hydraulic fracture and natural fracture (Cottrell, Hosseinpour, & Dershowitz, 2013; Doe, Lacazette, Dershowitz, & Knitter, 2013; Shakib, 2013; Zhang & Jeffrey, 2006)."

Jan 1, 2015

By R. E. Phelan

Introduction The Flin Flon deposit was discovered by Tom Creighton, an experienced prospector and trapper, who in 1914 made his headquarters at The Pas, Manitoba, and still lives there. The discovery was made in the fall of 1914, and Creighton and his associates spent the next summer in investigating the find. In August of 1915 the first claims were located. The property was optioned to Hayden Stone & Company, and in the spring of 1916 they started a diamond-drill campaign. Hayden Stone spent $50,000 on the property and, among other things, completed over 7,500 feet of diamond drilling. The ore not being as high grade as expected, and also being complex in character, Hayden Stone then abandoned their option. In the spring of 1917, Messrs. Earle, Faskin and associates took an option on the property and started an extensive drilling campaign. This campaign accomplished approximately 18,000 feet of drilling and secured for the Faskin interests a 32 per cent interest in the property. In 1920, W. B. Thompson and The Mining Corporation of Canada secured an option, and, while this option was in force, sunk two shafts in the ore-zone and did a considerable amount of drifting and cross-cutting in the ore to study the manner in which it occurred in place, and, by actual channel sampling, to check the grade indicated by the previously accomplished diamond drilling. All of this work had indicated that an ore-body existed on the property containing at least 18,000,000 tons of ore, assaying as follows: gold, 0.074 oz./ton; silver, 1.06 oz./ton; copper, 1.71 per cent; and zinc, ). 45 per cent (1). Complete analyses of composites from the drill holes showed that the ore was very complex in character. It contained the above values in gold, silver, copper, and zinc, as well as large amounts of sulphur and iron, and traces of lead, arsenic, antimony, cobalt, and various other metals. Although the ore was obviously pyritic in character, pyritic smelting, the usual method of treating this class of ore, could not be used to beneficiate the ore with any reasonable expectation of making such a venture a financial success, since coke and coal landed at Flin Flon would be expensive, and siliceous flux was known to be scarce locally and low in grade. The property therefore lay idle until 1925.

Jan 1, 1935

By R. L. Alexander

"Madawaska Mines Limited, incorporated in 1975 is the successor to Faraday Uranium Mines Limited. The history of the latter's mine development and corporate changes are outlined. This paper describes the geology of the Bancroft area and the rock types found in the mine, particularly the pegmatite which is the host rock for the uranium. The structure, mineralogy and distribution of the ore shoots are described with the method of grade control and mine development. The paper concludes with a summary of the production and mineral reserves.Location, Access, and PropertyMadawaska Mines Limited is located in Faraday Township, Hastings County, Ontario. The mine is in the N.T.S. quadrant 31 F/ 4, Bancroft sheet and near 46 degrees 01 minute latitude, 77 degrees 46 minutes longitude. The mine is one-half mile north of Highway 28, five miles (8 km) west of Bancroft, and is accessible by various highways from Toronto, Ottawa, Peterborough, and Belleville. (Fig. 1). A landing strip for small aircraft is located at the northwestern edge of Bancroft. Bancroft is a modern community with a population of 2,400. The company has the mineral rights to 2982 acres (1207 hectares) surrounding the mine workings and plant which are situated in the north parts of Lots 16 and 17, Concession XI, Faraday Township."

Jan 1, 1986

By Rodney Trevor Jones, Arthur Robert Barnes

Anglovaal Minerals acquired the Nkana slag dump from Zambia Consolidated Copper mines (ZCCM) in 1998 and embarked on an ambitious project to pioneer the recovery of cobalt from slag using DC smelting technology. Anglovaal Research Laboratories performed initial pioneering smelting tests in a 250 kW DC furnace over a 3-year period before engaging Mintek for three piloting campaigns at the 1.5 MW level. Mintek had previously developed a reductive smelting process, patented in 1995, using a DC arc furnace for the recovery of cobalt from slags. The results of the pilot-plant test campaigns were used as the basis for engineering the commercial 40 MW operation installed at Chambishi Metals plc in Zambia in 2001. This paper traces the development of understanding of the metallurgical fundamentals ultimately used to predict furnace performance, reviews some of the extreme technical challenges faced, how solutions were identified and highlights some of the critical issues identified during piloting and how these impacted both positively and negatively on the final commercial operation.

Jan 1, 2011

By Philip J. Bangerter, Chris Twigge-Molecey

Design for safety is critical to metallurgical plants, due to the inherently dangerous nature of their processes. Two significant areas of concern are: 1. preventing catastrophic process failures that cause damage or injury; and 2. operational safety that directly affects those working in or living near the plant. Process safety involves human behaviour, but the designer can eliminate or control hazards by engineering approaches, and control impacts through the design of the operating procedures. The tools available to guide safe facility design include bowtie analysis, hazard analysis, and hazard and operability studies. Clean plant design principles can guide the design process to address in-plant occupational health and safety issues. Auditing and review is a key part of the overall design process.

Jan 1, 2015

By Etienne Roy Grégoire

Since the early 1990s, the Canadian mining industry has been increasingly defined by the signing of Impact and Benefit Agreements (IBAs) between mining companies and Aboriginal peoples. While these agreements are intended to complement the legal system, they also serve to establish the legitimacy of mining projects and to encourage the harmonious integration of these projects into their social and environmental contexts. Beyond their practical implications, what are the effects of such agreements on the ability of Aboriginal communities to access the institutional space where the authorization of mining projects and the conditions of their implementation are decided? Can we view IBAs as a preliminary step towards the operationalization of the principle of Free, Prior and Informed Consent? This paper aims to explore the potential of IBAs as a sustainable solution to the legitimacy issues that result from the implementation of the formal regulatory framework governing mining activities in this jurisdiction. We highlight what constraints and opportunities the James Bay and Northern Quebec Agreement (JBNQA) engenders for local communities and draw attention to the ways in which the negotiation of the Raglan IBA and the environmental evaluation processes act upon each other. We find that certain structural problems - and problems of legitimacy ? related to mining in Northern Quebec cannot be solved by the sole signature of an IBA, which suggests the need for caution when considering such agreements as a panacea. The Raglan case demonstrates that IBAs, like other modes of regulation relying on the direct interface between companies and communities, would benefit from a stricter framework and more explicit ties with official regulation channels.

Aug 1, 2013

By Michael J. Lawrence

"The VALMIN Code was developed and formally adopted by The Australasian Institute of Mining and Metallurgy (AusIMM) in 1995 and a revision was issued in 1998. The VALMIN Code applies to all relevant reports under the Australian Corporations Law, including submissions to the Australian Stock Exchange (ASX) and the Australian Securities and Investments Commission (ASIC).The VALMIN Code and Guidelines sets standards for the preparation and commissioning of independent assessment and/or valuation reports on mineral and petroleum assets or mineral and petroleum securities.It is mandatory for AusllvI:M's members to follow this Code in these relevant circumstances and failure to do so will result in serious sanction of the member by the Ausllvllvfs Ethics Committee. Public support for the use of this Code has been given by regulators (ASX/ASIC) and market participants ( eg major accountancy firms). It is also endorsed as a guide to general best practice in project assessment and valuation.This paper will discuss how the VALMIN Code has worked in practice over the past few years. It will also examine areas where the Code could be improved and how it could form the basis of a new Canadian Code for mineral property valuation."

Jan 1, 2003

By M. Y. Levesque

The Australian Government?s Energy Efficiency Opportunities (EEO) program launched in 2006 obliges companies that use more than 0.5 PJ (petajoule) or roughly 139 GWh (gigawatt hour) per year to conduct an energy assessment in order to identify measures to improve energy efficiency. The opportunities identified by the mining sector were assembled in the Mining Significant Opportunities Register that permitted companies not yet embracing and adopting an energy management program to see what those who are, were doing and how much energy was saved, and helps disseminate best practice. The measures can be filtered by company, year, category or equipment type. The creation of a central repository of energy efficiency initiatives is valuable but this existing database could be improved; fields identifying the energy and carbon emission savings associated with a given initiative are a surprising omission. Consequently it does not permit the relative effectiveness of different measures for energy and carbon reductions to be readily assessed. A review of energy management efforts implemented in the mining industry, published in peer reviewed journals, corporate sustainability reports or industry publications during the last 40 years has revealed many examples of best practice. However, the lack of a standardized reporting framework in any of these sources has made it difficult to assess the effectiveness and compare the adopted energy management measures ? just as is the case with the Australian register. In an attempt to address these issues, an improved database structure has been created for energy management measures from the mining industry which identifies energy and financial savings arising from energy management initiatives, classifies applications to specific processes or equipment, and recognizes leaders in the mining industry with respect to energy management. The structure of the register includes the key data relevant to energy management in mining that is absent in the Australian version. The mining industry energy management database has been made available in the public domain where stakeholders can examine the best practice examples. Mining energy champions may also contribute to the register by providing case studies; a standardized entry template affords a quality assurance dimension that is absent in other reporting initiatives. Adoption of this database with its standardized reporting mechanism will enhance transparency of the mining industry in energy matters and help it maintain its social license to operate.

Aug 1, 2013

By Christopher R. Lattanzi

"Discounted cash flow analysis provides a means of relating the magnitude of expected future cash profits to the magnitude of the initial cash investment required to purchase an asset or to develop it for commercial production. The objectives of discounted cash flow analysis are to determine:.. The net present value of a stream of expected future cash revenues and expenditures... The rate of return which the expected future cash flows will yield on a given level of initial cash investment.In the case of mineral properties, discounted cash flow analysis is generally accepted as the preferred method of valuation, whenever sufficient data are available to permit its reasoned application. Sufficient data are required to support estimation of all of the individual elements of cash revenue and cash expenditure which will be associated with the development and operation of the property, up to the end of its estimated life. It is the accuracy of these input estimates which determines the validity of the resulting determinations of profitability and rate of return on invested capital.In undertaking any discounted cash flow analysis, it is important to recognize certain fundamental attributes of the mining industty:.. The basis of any mineral development is the existence of an ore reserve... Costs are determined by the number of tonnes mined and processed, while revenues are determined by the number of pounds or ounces of metal produced. The two are related by the recovered grade of the ore... Profit is typically more sensitive to changes in revenue than it is to changes in cost... Commodity price is a principal determinant of revenue, but it is also the factor with which is associated the greatest level of financial risk.In the end, of all of the factors which must be considered in the discounted cash flow valuation of a mineral property, the most significant are the reliability of the reserve estimate, particularly with respect to recovered grade, the price at which the product is to be sold, and the risk of not maintaining the projected level of price."

Jan 1, 2003

By John L. Rich

A New Field for the Mining Industry A new field for the mining industry is in prospect. This is the recovery of the petroleum which has been left in the ground in the older oil fields whose yield has declined until they are no longer profitable to operate in the ordinary way. The fact that an oil field has reached the economic limit for operation by pumping does not necessarily 'mean that the oil has ? been exhausted. In many such cases not over one-fifth, or even one-tenth, of the total oil content of the field may have been taken out when this stage has been reached. This means that there exists a large reserve of oil which can be recovered by whatever process best takes advantage of the natural conditions under which the oil occurs. Mine drainage is one of the processes by which this oil may be recovered. Its relative importance will depend partly on the ingenuity and wide-awakeness of mining engineers, and on mining capital. The opportunity is undoubtedly at hand. In order that we may be in a position to judge the possible advantages of mining methods for the recovery of this oil, I have reviewed, on the following pages, the methods now in use, and have discussed the physical conditions of the reservoir rocks in which the oil is found, and the suitability of the various recovery processes, in use or proposed, in the light of these reservoir conditions.

Jan 1, 1927

By Michael E. Charles, Jaroslav J. Vocadlo

"The hydraulic transport of solids through pipelines can have many advantages over other modes of transport. Numerous successful applications both within plants and over longer distances have demonstrated the technical and economic feasibility of slurry pipelining. Solids successfully transported include kaolin, coal, iron ore, gilsonite and limestone, and others, such as sulphur and potash, are likely to be transported in Canada in the near future. However, though the technology of solids pipelining is quite advanced the underlying principles have not yet been formulated past the semi-empirical stage. The main objective of this paper is to present a discussion of the important technical and economic considerations in the design of so lids pipeline systems by reference to typical data. The Worthington slurry pumps and pilot facilities are briefly described."

Jan 1, 1972

By James R. Hein

Manganese nodules form at the sediment surface of abyssal plains throughout the global ocean at water depths of about 4000-6500 m. The nodules form a continuum from purely hydrogenetic (all metals from seawater) to purely diagenetic (all metals from sediment pore waters), which will determine which metals of potential economic interest are enriched in the nodules. Another important factor in metal enrichment is whether diagenesis in the bottom sediment is oxic or suboxic. There are several nodule fields in the deep ocean that have received much attention with regards to economic potential, the most important being the Clarion-Clipperton zone (CCZ) in the NE Pacific, where the International Seabed Authority (ISA) has signed 12 contracts for exploration areas, each spanning 75,000 square kilometers. Those nodules are rich in nickel (mean 1.3 wt. %), copper (mean 1.1 %), and manganese (28%), with moderate amounts of cobalt (mean 0.2%), molybdenum (587 g/t), and lithium (129 g/t). A conservative estimate is that there exists 21,100 million dry tonnes of nodules in the CCZ, yielding more manganese, twice the nickel, three times the cobalt, and four times the yttrium than the entire land-based reserve base (economic plus marginally economic plus subeconomic reserves) for each metal. Total rare-earth elements (REEs) as oxides average 0.09% in CCZ nodules, a potential byproduct even at that grade because the heavy REE complement averages 26%, compared to less than 1% for the large land-based carbonatite REE deposits. The price for HREEs is much greater than for the light REEs. For comparison, the REEs in deep-ocean ferromanganese crusts are 3 to 5 times greater than nodules and the HREE complement averages 18%. Of the 12 CCZ contracts, 7 are with States (China, France, Germany, Japan, Korea, Russia, and a group of States (IOM); and 5 are with companies: G-Tec Sea Mineral Resources NV, Nauru Ocean Resources Inc. (NORI); Tonga Offshore Mining Ltd (TOML), UK Seabed Resources Ltd (Lockheed UK), and Marawa Research and Exploration Ltd. Three other nodule fields that have received attention are in the Peru Basin, which has nodules very rich in manganese (34%) and lithium (mean 311 g/t), the Penrhyn Basin (Cook Islands Exclusive Economic Zone), with nodules very rich in cobalt (mean 0.4%); and the Central Indian Ocean Basin (CIOB), where India has an exploration contract with the ISA. CIPB nodules have mean nickel, copper, and manganese contents of 1.1%, 1.0%, and 24% respectively.

May 1, 2013