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By N. Erarslan, M. Ghamgosar

The size of rock fragments depends on the nature of the loading applied the strength of the minerals and the texture of the rock. Research in the literature demonstrates that there is a distinct difference in the rock fracturing process for static and cyclic loading. The tensile strength of brittle rocks is also one of the most significant parameters influencing the rock fracturing process and the propagation of micro-fractures on the crushing, blasting and cutting of rock. The Brazilian indirect tensile test, one of the methods approved by the International Society for Rock Mechanics (ISRM), has been used to determine rock fracture behaviour under different cyclic loading modes. In this study, the dimensions of Brisbane Tuff specimens have been selected according to the method outlined by the ISRM. The main aim of this study is to evaluate the effect of cyclic loading amplitude and frequency on the Fracture Process Zone (FPZ) at the micro-, meso- and macro-scales. The post-failure behaviour of the Brisbane Tuff specimens was obtained under cyclic loading with frequencies varied from 1 to 10 Hz. The amplitude was varied from 10% of Ultimate Tensile Strength (UTS) up to 80% UTS. Laboratory investigations of rock fragment size revealed that different loading frequencies and amplitudes produce different FPZ dimensions. Multivariate Analysis of Variance (MANOVA) results demonstrated that the FPZ dimension is relatively sensitive to the frequency change. Fragment size analysis showed that the FPZ is a consequence of the initiation, propagation and coalescence of micro-fractures and depends on the nature of the loading. Laboratory evidence showed that the FPZ dimension, for the cyclic tests performed on Brisbane tuff, is ranged from 0.07 to 20 mm. The achievement of this study highlights a key finding in the understanding of fracture patterns and propagation models in the FPZ under cyclic loading, which is the dominate mechanical action in the oscillator disc cutter (ODC).

Jan 1, 2015

By C. O. Swanson

THE purpose of this paper is to discuss the use of the dip needle in the field of mining geology. The subject matter is new only to the extent that it reflects the writer' s added experience in recent years. The treatment is brief, and those interested in a more extended analysis are referred to the articles listed at the end of the paper. In the discovery and tracing of mineral deposits, the clip needle, like most other geophysical instruments, can be used in two ways. One method may be termed direct; the other, indirect. The direct method is that of finding or following certain ore-bodies by virtue of their magnetic properties. Explicitly, or by inference, it is the method which many mining men and practising geophysicists have in mind when they consider whether or not a certain property should be studied by geophysical means. In the ideal case, this method demands little or no knowledge of geological conditions. The indirect method uses the clip needle as an aid to purely geological studies in working out the structure of a mineralized area. Although not as simple as the direct method, it enjoys a much wider field of usefulness. The writer's experience in the past fifteen years, which is believed to be typical, is that the indirect method finds application four or five times as often as the direct method. The indirect method is of particular value because it furnishes information concerning the relationship between geological structure and ore occurrence. Most mining engineers will agree that structural control is an important factor in the localization of ore deposits, and therefore that the subject under consideration is of some interest in mining geology. Specifically, then, the present purpose is to outline the principles and practice of using the clip needle in working? out geological structure.

Jan 1, 1941

By Piotr Malkowski

Studies on the properties of rocks heated to high temperatures are rather rare. Such research is occasionally conducted for example; in areas around nuclear power plants. The national Polish coal gasification (underground coal gasification, or UCG) project has, however, forced the analysis of the geomechanical properties of heated rocks in the vicinity of a designed geo-reactor. Ukrainian experience with UCG show that rocks up to 2 m from the burned coal seam be at a temperature > 600ºC. Such a high temperature will undoubtedly influence their physical properties. This paper presents studies on the strength and deformation properties of carboniferous rocks in the Upper Silesian region, where the UCG process is planned. Three types of rocks were tested: claystones, mudstones and sandstones. Laboratory tests of these rocks evaluated compressive strength, elastic modulus and weight loss. An evaluation of the results of the tests comparing the thermal conductivity of rocks and their specific thermal capacity was then carried out. All of the rocks studied were heated to 300, 600 and 1000ºC, and also evaluated at room temperature. This procedure shed new light upon the behavior of heated rocks in relation to their distance from the designed geo-reactor. The test results presented were developed within Research Task No. 3 ?Developing a technology of coal gasification for efficient production of fuels and electric power?, financed by The National Centre for Research and Development under strategic research and development programme ?Advanced Technologies for Energy Generation.?

Aug 1, 2013

By D. L. Griffith

THE realization by metallurgists of the important effect that traces of impurity may have upon the properties of a metal, and their steady demand for purer and still purer metals, have made the special cools for 'trace' analysis of increasing value. In the United States at least, spectrographic analysis is becoming the standard method for determining the impurities in zinc die-casting alloys. The Hudson Bay Mining and Smelting Company, as a producer of virtually pure zinc, uses the spectrograph to control the purity of its products, and-as the electrolytic method is employed here-to control both the impurities in the electrolyte and those 'trace' elements, which, while they do not contaminate the zinc, have a great effect on the plating efficiency. The general plan of the laboratory is shown in Figure l; the housing for air purification, which is on the roof, is indicated by broken lines. One of the chief factors affecting the layout was the easy way in which a spectrographic assay can be spoiled by contamination. To minimize the quantity of dust tracked in, the laboratory was made separate from the general research laboratories, and an office was placed between the two. This arrangement has its drawback because of the traffic through the office, but it has effectively cut down dust. For similar reasons, the available space was subdivided into a number of small rooms, and the air currents in the laboratory were so arranged that dust would be carried where it would do least harm. Air is drawn in at the roof over a 50-kilowatt bank of Calrod heaters, through Annis air filters, by a No. 4 Sirocco fan. Most of it is forced into the spectrograph room, but some goes to the office and darkroom. The air flow is from the spectrograph room, through the plate-measuring room, into the chemical laboratory, where it is exhausted by a No. 1% Sirocco fan on the fume hood. Air can also re-circulate from the plate-measuring room back to the heater. The arrangement is such that the air in the laboratory is maintained at higher pressure than the outside air; consequently, no dirt enters through cracks about the windows and doors. A thermo-regulator holds the temperature constant within one or two degrees; only on the hottest days in summer does the temperature rise enough to affect the focus of the instrument.

Jan 1, 1940

By S. Malopheyev, I. Vysotskiy, R. Kaibyshev, S. Mironov

"In this work, the effect of pre-strain rolling on the annealing behavior of friction-stir welded 6061-T6 aluminum alloy was studied. To this end, the as-welded material was rolled to 10 or 20 pct. of thickness reduction prior to the standard post-weld T6 heat treatment. Three rolling directions were the 3-mm thick sheet were considered: along the welding direction, perpendicular to the welding direction, and at the angle of 45° to the welding direction. At relatively low pre-strains (10 pct.), the annealing behavior was found to be very sensitive to the rolling path, and rolling along the welding direction was most effective in suppressing abnormal grain growth. On the other hand, increasing the pre-strains to 20 pct. of thickness reduction inhibited abnormal grain growth irrespective of the rolling path.INTRODUCTION Heat-treatable wrought Al-Mg-Si alloys are widely used due to attractive combination of strength, ductility, excellent corrosion resistance and low cost (Polmear, 2006). To provide the optimal balance of mechanical properties, these materials are typically commercially available in appropriately work- and precipitation-hardened conditions (Polmear, 2006). During conventional fusion welding, however, the prior strengthening effect is totally lost due to elimination of the work hardened structure and dissolution of the strengthening precipitations. An innovative friction-stir welding (FSW) technology may partially overcome this problem. Due to the solid-state character of this process, which involves very large strains, the welded material is characterized by fine-grained microstructure with moderate-to-high dislocation density, and thus the prior work hardening effect may be preserved or even enhanced (Threadgill et al., 2009; Mishra & Ma, 2005). However, heat input associated with FSW inevitably leads to dissolution and/or coarsening of strengthening precipitates, thus giving rise to the undesirable material softening. In an attempt to restore the strength of the friction-stir welded material, the standard T6 post-weld heat treatment has been applied, but this approach was found to lead to abnormal grain growth (Malopheyev et al., 2016; Mironov, 2013, Mironov et al., 2015)."

Jan 1, 2018

By K. S. Fraser, H. J. H. Pieterse

"A pressure oxidation plant to pretreat refractory sulphide ore at the Goldstrike plant in Nevada, was commissioned in early February 1990. The plant, with a nominal capacity of 1363 t/d, was commissioned over a one-week period and achieved design capacity and availability within ten weeks an unusually short period for a plant of this complexity.The pressure oxidation process is conducted under elevated temperature and pressure conditions, and in a corrosive environment. These conditions demand that the process and engineering design of the plant be carried out in a much more sophisticated and detailed manner than is normally required in a conventional gold plant.This paper provides an account of the process and engineering design of the Goldstrike pressure oxidation plant with special emphasis on the design of the vessels, slurry pumps, piping, valves, and control systems.BackgroundLocationThe Goldstrike property is located in Eureka County in northcentral Nevada on the Carlin geological trend. The mine is approximately 40 km northwest of the town of Carlin which is situated on Interstate Highway 80. The minesite is located 1700 m above sea level in the Tuscarora Mountains.Initial Goldstrike OperationsShallow, low-grade mineralization was discovered by diamond drilling in the Goldstrike area in the 1960s. A heap leach operation was established in the mid-I970s by the previous owners. The Post deposit was discovered in 1982. Gold production by mining and heap leaching reached I t/a (40 000 oz/a). American Barrick purchased the property in 1987 and started an aggressive program of deep drilling. This led to the discovery of the Betze and Deep Post deposits and established sufficient reserves to justify an initial 4100 t/d mill and a 5 500 000 t/a heap leach operation"

Jan 1, 1992

By J. George Gregr

"This paper gives a brief review of grinding mills installation procedures with special emphasis on future maintenance. The importance of cooperation between the customer, construction contractor and manufacturer's representative is discussed, as well as the imparlance of complying with standards, specifications and the keeping comprehensive installation records.Fundamentals of mill maintenance are explained with the aim being to maximize the equipment availability and to minimize unscheduled downtime. The paper also includes development of wear items design, based on operating conditions, drive components and bearings, and how to keep large gears healthy thus eliminating surprise failures.Experience with installation of a large gear on a 34-foot diameter mill in Lornex and successful application of a computer program for the gear alignment on the mill are given.IntroductionSuccessful operation of a concentrator begins with the engineering of the project and continues through selecting the right equipment, its installation , start-up period, and ends with final tuning of the process. machinery and the human factor into an efficient and viable industrial complex.The following is a brief review of grinding mill installation procedures with special emphasis on future maintenance. Fundamentals of mill maintenance are discussed with the aim being to maximize the equipment availability and to minimize unscheduled downtime, with some specific points on key grinding mill components such as bearings and drives.Finally, the experience is recounted with the installation of a large ring gear on a 34-foot diameter mill at Lornex, and the successful application of a computer program for the gear alignment on the mill."

Jan 1, 1985

By Bertrand Quiniou, Pierre Amadieu

Ion exchange technologies and processes are proven and established technologies widely used in numerous industries including hydrometallurgy for metal separation and recovery from metal bearing solutions. They have evolved through innovation which includes the development of countercurrent multistage (or multivessel) ion-exchange contactor systems with the benefit, for industrial operations, of greatly reduced footprints and ion-exchange media inventories, as compared to more traditional fixed bed contactor systems. Information on procedures for design and sizing of countercurrent multistage ion-exchange contactor systems is not readily available since it is most often proprietary know-how. The purpose of the present work is to develop a simple and innovative approach for the sizing and modeling of industrial countercurrent multistage ion-exchange contactor systems. The suggested approach builds upon published results and upon the following observation: in an industrial setting, knowledge of how component concentration or load on a contactor output streams vary with time t within a cycle duration (0 < t < T) is generally of little interest, only knowledge of time average of such concentration or load over a cycle duration T is sought for. The presented approach will be tested against current or past performances of industrial countercurrent multistage contactors of Orano Mining operations such as SNK‑3M moving packed bed contactors in Kazakhstan and NIMCIX fluidized bed contactors in Namibia.

Jan 1, 2020

By K. Meshinchi Asl

In this study the effects of T4 and T6 heat treatments on microstructural characteristics of AZ91 alloy containing Rare Earth elements have been investigated. Formation of intermetallic Al1 1RE3 needle shape particles which have a good thermal stability reduces both formation of ß(Mg17A112) and discontinues precipitation in AZ91 alloy which are dominated at the grain boundaries and are responsible for poor mechanical properties specially in elevated temperatures. For AZ91-RE samples both T4 and T6 heat treatments led to a continuous precipitation of ß particles at the grain boundaries after aging. However, in AZ91 samples (with no Rare Earths) precipitation was discontinuous at grain boundary areas. This type of precipitation is one of the main reasons of poor mechanical properties of this alloy at elevated temperatures.

Jan 1, 2007

By E. Lovera

ABSTRACT: The current study analyzes the feasibility of an odd operation: to obtain, using a properly tailored drilling and blasting scheme, blocks suitable for the production of dimension stone from tunnel driving. Clearly, a compromise must be found between the rate of progression and the achievement of workable blocks. As a case study, a civil work under consideration in northern Italy was examined. The work was planned to cross a conglomerate that has traditionally been locally exploited for the production of highly prized paving and lining stones with excellent strength and aesthetic features. Natural exposures and mined-out quarries were available for tests. The relevant rock data are given, blast designs are shown (within the limitations of contour accuracy), and the test program is described.

Jan 1, 2011

By Mengsu Hu, Yuan Wang, Jonny Rutqvist

Material interfaces and typical boundary conditions are boundaries influencing the existence, uniqueness and stability of numerical solutions of water flow in heterogeneous media. The Numerical Manifold Method (NMM) with a two-cover-meshing system is an ideal method to handle boundaries, considering its flexibility with no need to adjust mathematical nodes onto boundaries, the meshing efficiency, and its integration precision. In this study, we derive and compare two new approaches for boundary constraints, i.e., a discontinuous approach with Lagrange multiplier and a continuous approach with jump function in the frame of NMM. In the discontinuous Lagrange multiplier method (LMM), Dirichlet boundaries or the material interfaces are regarded as discontinuities which are linked by Lagrange multipliers. In the continuous Jump function method (JFM), the material interfaces are regarded as inner interfaces, where the refraction law is realized by constructing jump terms with discontinuity of hydraulic gradient in its normal direction. Both the continuous and discontinuous approaches make full use of the aforementioned advantages of NMM and are established based on a clear physical meaning of water flow by our energy-work seepage model. The newly derived boundary-constraint approaches were coded into an NMM water flow model and tested for precision and efficiency on different simulation examples. We first tested both LMM and JFM for an idealized heterogeneous model, comparing the numerical results with analytical solutions. Then we tested both approaches with a heterogeneous model and compared the results of hydraulic head and specific discharge. We proved that both approaches are very suitable for material boundaries considering the accurate realization of the boundary constraints and the flexibility with no need for mesh-conforming.

Jan 1, 2015

By L. Shang

In conventional continuous hot rolling processes, metals are usually reheated to a temperature such that the workpiece will maintain appropriate hot working characteristics as it proceeds through the rolling mill, assuming that the temperature is continually decreasing. Metallurgically, reheating will reduce micro-segregation in the as-cast material, may increase the as-cast grain size and will affect any second phase particles present in the as-cast structure. All these changes can affect the hot working characteristics, and the final as-hot rolled microstructure. In order to study the effect of reheating on AZ31 magnesium alloy, a plate sample was cast in a water cooled copper mould and a series of compression tests was performed at a temperature of 350 °C, strain rate 0.01 5-1, and strains from 0.2 to 1.0, after different reheating schedules. It was found that there is no significant difference in flow behavior between the as-cast sample and all but one of the reheated ones. The reheat treatment of the &apos;anomalous&apos; sample was a two stage heat treatment; it was first reheated to 450 °C, cooled to room temperature, then reheated to 350 °C. The effect on the flow curve was to increase the flow stress. This result may be related to changes in second phase particle characteristics.

Jan 1, 2006

By H. Kolcz, G. S. Dobby, R. Stratton-Crawley, S. W. Wilson

"The Matte Separation plant at Inco's Copper Cliff Smelter Complex is described. The continuing implementation of flotation column technology in the flowsheet in various applications is reviewed. Comparative studies on 0.038, 0.10, 1.1 and 1.8 m diameter columns have been carried out. It was demonstrated that consistent metallurgical performance was obtained with both pilot- and plant-scale units. Grade-recovery relationships for plant columns can be predicted with confidence from data obtained from test equipment. The work indicates further areas of the flowsheet in which columns present an attractive alternative to conventional cells. INCO’s MATTE SEPARATION PROCESSNickel concentrate from Inco’s Sudbury area mills has been processed in the Copper Cliff smelter for sixty years. Prior to that, Sudbury ores had been smelted directly. Historically, copper-nickel separation from smelter converter matte was achieved by the classical Orford process. In the mid-1940s Inco developed an improved separation scheme based on mineral processing methods, the Matte Separation Process. A generalized Copper Cliff Smelter Complex flowsheet is shown in Figure 1.Iron sulfide and gangue contained in the nickel concentrate are rejected in the smelting-converting process. The molten product, typically containing 50% Ni, 25% CU and 22% s, is cast at about 1000 ºC, into floor moulds and allowed to slowly cool for four days. During this period nickel sulfide (heazlewoodite, Ni,S,), copper sulfide (chalcocite, cu,S) and a copper-nickel metallic alloy precipitate and form a coarse grain structure that is amenable to separation by physical means. The phase chemistry of this system has been described previously by Sproule et al (1). This matte then becomes the feed to the Matte Separation Process.A simplified block flowsheet of the Matte Separation Process is shown in Figure 2. Matte ingots, typically weighing 20 tonnes each, are broken and crushed in a three stage crushing plant to approximately minus 0.01 m and conveyed to the Matte Separation building. Grinding is carried out in two parallel circuits each consisting of a rod and ball mill in series producing a flotation feed which is 65% minus 44 microns. Typical throughput of each grinding circuit is 650 tonnes/day. The metallic fraction of the feed is recovered by magnetic separation. This product, containing about 66% Ni and 15% CU, is a major component of the feed to the Copper Cliff Nickel Refinery."

Jan 1, 1990

By J. C. Folinsbee, D. R. Derry

"The Property of Opemiska Copper Mines (Quebec) Ltd. is in Levy Township, Chibougamau district, west of Chibougamau and south of Opemiska Lake. The original find was made in 1929 by the late Leo Springer and associates of Prospectors Airways Ltd., following observation from the air of an area of dark rocks in newly burned-over country. Work on the ground discovered three veins of high-grade chalcopyrite in gabbro (No. l, No. 2, and ""North"") and, after several seasons of trenching and diamond drilling, financed by Ventures Ltd., a shaft was sunk in 1936. This work indicated about 280,000 tons of six per cent copper ore to a depth of 500 feet. During this period, the senior author carried out a reconnaissance geological survey over the whole property and surrounding claims, which showed that the veins were in the gabbro portion of a large composite basic sill that had been folded with the enclosing lavas. Owing to the low price of copper and lack of transport work was suspended and the property remained dormant until 1951.In that year the company was re-financed, the property prepared for production, and further exploratory drilling undertaken. The drilling, based on structural indications, located a new vein of which the only previous evidence had been some irregular stringers. This vein, No. 3, was traced by drilling for a length of 2,000 feet and the indicated reserves were thereby increased to about one million tons. An additional vein, No. 4, was intersected in several holes.With this encouragement, plans for production were confirmed, and operations commenced' at the beginning of 1954 on a scale of about 400 tons a day, concentrates being shipped by truck to St. Felicien and thence by rail to Noranda. In the first year of operation concentrates were re-covered carrying 14,047,210 pounds of copper, 76,714 ounces of silver, and 6,259 ounces of gold. The operation is under the direction of J. P. Millenbach, General Manager, with J. M. Thompson as Assistant General Manager and F. G. Cooke as General Superintendent on the property."

Jan 1, 1949

By L Thompson, R C. West, T S. Kho

In 1978, the Outotec direct to blister flash (DBF) smelting process was commercialized with the commissioning of the Glogow 2 smelting facility in Poland. Since then four further DBF facilities have been constructed, two at Olympic Dam, one in Zambia and most recently one at Glogow 1 in Poland. The DBF smelting process differs considerably from conventional smelting process in both chemistry and unit operations, presenting opportunities for flowsheet capital and operating cost savings particularly when the concentrate copper grade is high. WorleyParsons has amassed considerable expertise in the Direct to Blister process and in this paper the process is compared to the modern two stage Double Flash process. The processes are modeled, and the key operating parameters, consumables and production metrics are directly compared. Subsequent flowsheets, key equipment lists and capital costs are also presented for comparison and discussion. The results show the range of concentrates which are most economically treated by the DBF process relative to those best treated in conventional processes along with those concentrates which could be treated by either process. INTRODUCTION The Outotec Direct to Blister (DBF) process was developed and installed at Glogow in 1978 (Czernecki et al., 2006). Currently there are a total of five DBFs built on three sites: Glogow No.2, Olympic Dam No.1, Olympic Dam No.2, KCM Zambia and Glogow No.1, being the most recently constructed. The DBF process was the first flash furnace process to produce blister copper and paved the way for the subsequent development of the flash converter and other continuous converting processes. Today four flash converters are in operation taking the total number of flash furnaces producing blister copper to eight. In all DBF operations it is the unique ore and concentrate composition which made selection of the DBF process the most attractive. In all cases, the concentrate is relatively high in copper but low in iron because chalcopyrite is not the major constituent. When considering smelting options for high copper, low iron concentrates a key question is then often asked, “At what point does it become economic to switch from two stage smelting and converting process to the DBF process?”

Jan 1, 2019

By F. E. Lathe

The method of feeding blast-furnaces to be described below is simply the application of well-known principles, and an attempt to carry that application to its logical conclusion. It does not involve radical changes in equipment, nor does it require unusual skill on the part of the furnaceman. In fact, much of its value lies in its very simplicity. Before giving details of the method it will be well to consider briefly the conditions under which it was used at the Nickelton plant of the British America Nickel Corporation, in the Sudbury district, before that plant closed down. The Sudbury nickel ore consists chiefly of pentlandite, chalcopyrite and pyrrhotite in a gangue of norite or greenstone. The proportions of sulphide and gangue vary widely in different mines, the former constituting about 45 per cent of the total in the British America sorted ore. The gangue is fairly uniform in analysis, carrying about 55 per cent Si02, 18 per cent A120 3, 13 per cent FeO and smaller quantities of CaO, MgO, Na20 and K20. The ore has been frequently described as refractory, a word which seems suitable when one considers the many unsuccessful attempts to smelt it pyritically, as well as the high percentage of coke normally used at all the plants in the district.

Jan 1, 1925

By W. B. Boggs

A paper describing the Noranda smelter was presented at the 1930 annual meeting of the Institute (1). A lacer article appeared in the Trans-actions of the A.I.M.&M.E. in 1933. Since that time there have been many changes and improvements in plant operation and it is the abject of this paper to give an account of developments up to the beginning of 1939. The Noranda smelter was built originally for a capacity of 30,000 tons a month. At present, the average tonnage being treated is 110,000 tons a month, the tonnage of custom ores alone amounting to almost the total rated capacity of the original plant. This increase has been accomplished by increasing the capacity of the reverberatory furnaces from 700 tons of solid charge per furnace day in 1928 to 1,500 tons per day at the present time. In 1935, it appeared chat the limit of furnace capacity had been reached at about 1,300 tons of charge per day because of the short life of the sprung silica arches. However, the adoption of the suspended magnesite roof, which had been developed at the Flin Flou smelter of the Hudson Bay Mining and Smelting Company, overcame this difficulty and it is believed that the limit of the capacity of the present reverberarory furnaces has not been reached. A brief account of the changes to equipment in the various departments will be given, followed by a description of the more important features of present smelter practice.

Jan 1, 1939

By G. Anger, J. Enser, H. Antrekowitsch, S. Koch

Homogeneous chemical composition and microstructure are always necessary, but not always attained in practice. As-cast aluminium alloys tend to have a segregation microstructure. Features of the cast structure, which affect subsequent processing or properties, can be altered by the homogenization. The main task of the Department of Nonferrous Metallurgy was to investigate the effect of homogenization treatment on precipitation hardening of aluminium alloys 6061 and 6082. The effect of the solution heat treatment (SHT) temperature on the mechanical properties was also analyzed. The homogenized and non-homogenized rolling slabs were produced according to the usual conditions and methods. The metallographic investigations were carried out on the as-cast samples, after homogenization, after the hot and the cold rolling mill, and after natural and artificial ageing. Then, Brinell hardness measurements and tensile tests were conducted on both alloys in order to examine the influence of the homogenization.

Jan 1, 2006

By C. Denis Thibodeau

Outline Introduction 402 OB Mining Sequence Trial to Verify Sequence Change Monitoring Observations Numerical Modelling Conclusion

May 1, 2013

By Lawrence Devon Smith

"This paper examines the impact of the various assumptions that go into an economic evaluation, and shows how these can be combined to show an exciting result that may not really exist. An example of an embellished case (the kind that one frequently sees when projects are being promoted) is developed and the cumulative impact is analysed to show the actual project underneath. The paper also points out some areas to watch for overly optimistic assumptions such as prices, inflation, and debt. The concept of a ""bare bones"" base case is proposed (constant metal prices, constant dollars, no inflation, no debt, no interest, on a project basis, after tax) as a common reference point.As well, the discount rate is examined as a fundamental means of reflecting risk in discounted cash flow evaluations. Current industry practice is discussed, and a methodology for the analysis of risk levels is proposed that assesses the constituent components of the discount rate: real interest, mineral project risks, and country risk.INTRODUCTIONOften, the first time that all of the technical and economic data for a mineral project comes together in one place is when the economic evaluation is developed. This typically happens when work on the project has progressed to a sufficient level of detail that the effort to produce a year-by-year cash flow is justified, usually at the pre-feasibility or feasibility study stage. The data involved will include:• production; tonnes waste and ore mined, ore grade, mining recovery, metallurgical recovery, metal sold• revenue; metal price, smelting & refining charges, marketing costs• operating Costs; mining, milling, administration, fees, royalties• capital Costs; exploration, development, construction, indirect costs (engineering, management), contingencies, start-up, inventories, working capital, replacement and sustaining capital, closure costs• taxes and royalties• exclusions; depreciation (this is not a cash item), sunk costs (only costs going forward)."

Jan 1, 2003