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By B. Berhe, R. D. Lawrence, J. Hinzer

"The fortunes of mining companies and their implied value are tied to cycles - both economic and commodity – within which they operate. Hence the determination of appropriate future metal prices is one of the most critical factors faced by mineral valuators especially for advanced projects. Price, and hence revenue, is usually the most sensitive input to the valuation model. Empirical studies of past forecasts show that the success rate for commodity price forecasting is very poor. This paper explores various approaches and comments on their strengths and weaknesses. We conclude that careful evaluation of long-term metal prices is a key element and is hardly a luxury that can be left to simple averages or rules of thumb. INTRODUCTION Discounted Cash Flow (""DCF"") analysis, is well suited for the valuation of advanced mineral development assets, for which there are identified mineral resources and some form of economic assessment (Pre-Feasibility or Feasibility Study). The DCF method is also the most commonly used method for determining value for such assets. It provides a means of relating the magnitude of expected future cash flows from profits (or losses) to the magnitude of the initial cash flow (investment) needed for capital expenditures to purchase or to develop an asset for commercial production. The method proves useful in making investment decisions as it allows for the quantification of the Net Present Value (“NPV”), as well as the Internal Rate of Return (IRR) and Payback Period on initial investment capital. Valuation by its very nature is a forward-looking exercise. The DCF method attempts to estimate the NPV of expected future cash flows, by selecting factors that will likely affect future cash flow based on informed analysis. One of the most critical and sensitive factors is the determination of appropriate future commodity prices. “The variables that have the greatest impact on a DCF evaluation are the reserves, the metal prices, and the discount rate.”1 The determination of future commodity prices for valuation purpose or during M&A negotiations is a hotly contested issue. There are a number of analysts, institutions and specialized commercial data suppliers that provide both short and long-term commodities price forecasts. Also, the use of an aggregated mean for all available forecasts, or consensus forecasted prices for valuation purposes is not uncommon. The methods used in making forecasts for each forecaster may vary and in many cases may not be publically disclosed. Nonetheless, the aggregated mean of all forecasted commodity prices of reputed institutions is usually taken to “represent the market’s view of likely future commodity prices.”"

Jan 1, 2016

By K. Lapakko

One responsibility of the Minnesota Department of Natural Resources is to encourage the development of mineral resources within the state. A second responsibility is to ensure that mineral development does not adversely impact other natural resources, including the water resources of the state. One approach the Division of Minerals has taken to fulfill these responsibilities is to conduct cooperative research with the mining industry. To encourage mineral development the Division has cooperated with industry on projects related to exploration, mining, and mineral processing. To examine environmental issues the Division has worked in concert with iron ore, base metal, and precious metal exploration and mining companies, as well as the Western Governors' Association, US Bureau of Mines, US Bureau of Land Management, and the US EPA for the past 20 years. These projects were conducted to evaluate methods of predicting, preventing, controlling, and treating problematic mine waste drainages, as well as mine waste revegetation. This paper I) briefly summarizes cooperative projects conducted, 2) enumerates elements which have contributed to the success of cooperative projects, and 3) describes changes implemented for future projects at the Division's new field and laboratory research facilities, as well as at existing mine and plant sites.

Jan 1, 1998

By Howard L. Hartman

The federal government's declining role in funding research has created a critical dollar gap for university departments of mining engineering. Industry is not unaffected by the drought: not only is research lagging, but hard- pressed universities are going to the private sector for funding. This paper's thesis is not that mining companies should shower universities with philanthropy, but that a quid pro quo ought to be exacted: a research partnership should be contracted on a pay-as-you-go basis. A model exists at The University of Alabama (albeit not in mining) that may lend itself to adoption by our industry.

Jan 1, 1984

By Young C. Kim

Use of geostatistics to solve mining problems is gaining importance as the cost of developing new mines is increasing and there is a need to mine more marginal deposits. But, until recently, coal companies have shown little or no interest in geostatistics. However, the stringent quality controls on coal burning has led to a surge in interest in improved methods for estimating clean coal characteristics. Until now, most of the geostatistical applications have centered on the problems of estimating in-situ coal characteristics (Sabourin, 1975; Wood, 1976, 1979; Fang and Stark, 1976; Pauncz and Nixon, 1979; and Knudsen et al., 1980). Little work has been done in applying geostatistics to coal washability, except that by Armstrong (1980). Applying geostatistics to coal washability basically means the estimation of cleaned coal characteristics, with the aid of geostatistics. Cleaned coal estimation plays a very important role in overall emission control strategy, as can be seen by the general flow diagram of such a strategy shown in Figure 1. The scope of this paper is limited to one aspect of the overall emission control strategy shown in Figure 1; namely, the prediction of cleaned coal characteristics using geostatistics.

Jan 1, 1982

By D. R. Nagaraj

Based on our finding that commercial copper chelating solvent extractants such as LIX65N® and LIX63® are excellent collectors for copper minerals, a detailed study was made using several water-soluble chelating agents belonging to the class of aromatic hydroxyoximes and having a gradual structural variation. A basic study of the system salicylaldoxime-tenorite was also carried out. Microflotation tests as a function of concentration of oxime, pH, addition of copper etc., using oxidic copper minerals such as chrysocolla and tenorite, and batch laboratory flotation tests using synthetic mixtures of quartz and oxidic copper minerals were carried out. The studies were aimed at an understanding of the collector function of the hydroxyoximes and of the general flotation behavior in these systems, in addition to studying the structural aspects of oximes vis-a-vis flotation. The results have demonstrated that all of the hydroxyoximes studied here have comparable collector property, and in all cases the oxime was found to be partitioned between the mineral surface and the copper in the bulk aqueous phase in the form of a bulk copper chelate. The occurrence of the latter could be accounted for by the formation in the bulk phase of a chelate between oxime and copper released from the mineral and/or by the detachment of the surface chelate. The role of surface and bulk chelates in flotation is discussed based on the results of partitioning of chelating agent into bulk and surface chelates in the system salicylaldoximetenorite. The effect of substitution of CH2 groups or benzene ring in the chelating agent molecule on its collector property is also discussed, in addition to the finding that only the anti-isomer has the ability to collect.

Jan 1, 1979

By Martin C. Kuhn

The use of tritium in manufacturing and its subsequent loss to the local environment in Tucson, Arizona resulted in a great debate relative to the physiological effects of low level radiation. This paper reviews some of the facts of the release and attempts to quantify the degree of hazard encountered by the local community. Some of the difficulties in assessing the true degree of absorbed dose and the assumptions necessary for calculation purposes are presented.

Jan 1, 1981

By Robert R. Unterberger

The purpose of this paper is to summarize the research of the past sixteen years on three distinct methods of probing into solid rock. The first method is to use radar of the appropriate frequency. The second method is to use sonar. The third method is of recent vintage and uses techniques of nonlinear sonar also known as parametric sonar. The first two concepts, that of radar and sonar, are common to most people. Very few have heard of nonlinear sonar. Each of the probing techniques were investigated in order to overcome deficiencies in the former technique. Each has its advantages and disadvantages. It should be emphasized that all of these techniques for probing (or seeing) into rock are used in mines, and generally speaking not from the surface. Only in very special cases, such as certain very dry parts of Egypt or Peru, or, for example, the surface of the moon, will these probing techniques work from the surface. The reason for the development of these probing techniques has been to alert miners to possible hazards ahead of mining. Such hazards may be (1) old (unknown) boreholes connected with high pressure water zones above, (2) fractures that might connect to the Gulf of Mexico above the mine, (3) water-filled fractures that threaten the safety of miners, or (4) the discovery of dry faults ahead that can disrupt the planning of future operations.

Jan 1, 1983

By W. E. Benton

Diatomite or diatomaceous earth is a siliceous sedimentary rock principally made up of the skeletal remains of the diatom, a microscopic, single-cell aquatic plant related to algae. The unique structure, chemical stability and physical properties are the major attributes of diatomite not met by other forms of silica. The production of diatomite was down in 1982 vs. 1981, reflecting the worldwide recession. The principal markets for diatomite products continue to be basically filtration and fillers. The outlook is for small but steady growth into the 1990s.

Jan 1, 1983

By Daniel A. Wasson

A review of the history of boosters is given with examples of the prominent types that have been made commercially. The performance and design features of protected core boosters are discussed in detail. A new gel booster is discussed with its advantages to the mining industry. Booster size, hole configuration, performance and safety aspects are reviewed. Important features of boostering in above ground and underground blasting are related to an economic analysis. This presentation will cover different types of boosters commonly used in mining. However, for the purpose of this paper a few terms need to be defined to clarify the action of different parts of a priming system. Booster* - "Any unit of explosive or blasting agent to be used in a charged hole for the purpose of perpetuating or intensifying the initial detonation". Primer* - "A unit, package or cartridge' of explosives containing a detonator or detonating cord which is used to transmit detonation to other explosives or blasting agents". Detonator - A device for initiating a detonation from a flame or a small electric current, the former being represented by a fuse cap and the latter an electric blasting cap.

Jan 1, 1981

By Edwin B. Wilson

Electric power generation remains the greatest market for coal in the United States. In 1967, about 272 million tons of coal, amounting to over 51 percent of total coal consumption, were burned to satisfy this nation's hugh demand for power. The size of the utility market is currently five times that of 1941 and continues to grow with the demand for more and more energy. A major reason for this strong market has been the ability of the coal industry to supply a superior product for combustion while maintaining competitive prices. Now that the coal industry is engaged in intensive competition with nuclear power for future energy demand, it becomes ever more imperative that superior coal products are produced. One important problem when burning some coals is a liquid phase corrosive attack on boiler tube metal in the superheater and reheater areas of the furnace where steam temperatures may exceed 1050°F.

Jan 1, 1969

By J. Noll, J. A. Organiscak, A. B. Cecala

"In recent years, significant strides have been made to optimize the design of filtration and pressurization systems used on enclosed cabs of mobile mining equipment to reduce respirable dust and other contaminants and provide the best air quality to the equipment operators. This synergetic effort has involved original equipment manufacturers building mining equipment, manufacturers of heating, ventilation, and air conditioning systems for mobile equipment, filtration and pressurization system manufacturing companies, as well as the National Institute for Occupational Safety and Health, and other government organizations. Considering all the advances made in this area over the last decade, one aspect that NIOSH still needs to assess is the longevity of optimal cab performance with respect to the quality (filtering efficiency) of the filters used in filtration and pressurization systems. In today’s culture, most health and safety professionals automatically believe that HEPA quality filters need to be used to provide the greatest level of protection to workers. Researchers at the Office of Mine Safety and Health Research for NIOSH hypothesized that HEPA quality filters may not be optimal for the mining industry and speculated that MERV 16 rated filters would be more appropriate in most cases. In order to test this hypothesis, NIOSH performed a two-year study comparing both HEPA and MERV 16 quality filters on two pieces of underground limestone mining equipment, being a roof-bolter and face drill machine. Testing showed at the 95 pct. confidence level that there was no statistical difference between the two efficiency filters on both pieces of mining equipment. Since the MERV 16 rated filters were less restrictive and provided greater cab pressure, and since they did not have to be replaced as often as the HEPA quality filters, researchers concluded the MERV 16 filters were the optimal choice for both pieces of mining equipment in this case study comparative analysis. INTRODUCTION When most health and safety professionals today think about filtration efficiencies and their correlation with protecting workers’ health, the normal assumption is the higher the efficiency of a filter, the greater the protection afforded to the workers. The next logical step is to believe that HEPA filters deliver the greatest protection for workers because they provide the highest filtering efficiency. Obviously high-efficiency intake filters are a necessity for an effective cab filtration and pressurization system on mobile mining equipment, but what is the optimal filter efficiency rating for achieving high levels of cab protection factor performance over the service life of filters? To address this question, the National Institute for Occupational Safety and Health (NIOSH) has performed an in-depth laboratory research study over the years simultaneously with numerous field studies to retrofit used enclosed cabs on mobile mining equipment with newer and more effective filtration and pressurization systems."

Jan 1, 2016

By W. C. Bagby

The Dee disseminated gold deposit is the northernmost mine in the Carlin gold belt. We analyzed soil samples £ran undisturbed areas overlying the deposit to determine the usefulness of soil geochemistry in identifying ore zones. The depth of sampling ranged from 12 to 14 inches, depending on soil development. The -80 mesh fraction was analyzed by atomic absorption for Au, As, Sb, Hg, and T1 and by semiquantitative spectrographic analysis for Ag. Highly anomalous Au, Kg, As, Ag, and Sb are most closely associated with ore zones whereas T1 is more broadly dispersed. Hg is the only element that identifies deep ore.

Jan 1, 1984

By John J. Stetler

The Companhia Vale do Rio Doce in Brazil operates one of the most extensive systems in the world for the mining, transportation, processing, pelletizing and shipping of high grade hematite iron ore and pellets. Current shipping of unbeneficiated, sized, high grade ore from its ports at Tubarão and Vitória is now at the rate of 17,500,000 metric tons annually. An increase in this annual rate is now under study. Using the technology and facilities of Lurgi (1) and Arthur G. McKee company CVRD undertook a program to process and pelletize two types of fines - "Blue Dust" and ?Itabira Fines?. Blue Dust is a high grade fine ore which was bypassed while mining the direct shipping ores and which, also, exists as a very large ore body called the Conceição Mine. Itabira Fines is a lower grade of fine ore which is comprised of in-situ fines and, also fines which are generated in sizing the direct shipping ores for a rigid specification market.

Jan 1, 1970

By John B. Goddard

The discovery of rhenium on the ion exchange resin used at the uranium in-situ leach operations at Palangana (Texas) led to a laboratory study on the possible methods of recovery. Rhenium, present in small amounts in the ammonium carbonate leach liquors as the perrhenate anion, Re04-, concentrated on the anion exchange resin, which was a factor of ten more selective for rhenium than for uranium. Various elution systems were investigated for stripping the rhenium from the columns after the uranium had been eluted with chloride or nitrate solutions. Although the perchlorate ion was most efficient on a molar basis, nitrate ion combined the benefits of efficiency and low cost. A 3[N] or stronger concentration of nitrate containing up to 0.5[N] H+ was found to be the system of choice. A rhenium sulfide concentrate containing up to 14% Re was obtained from these effluents by hydrogen sulfide precipitation. Preliminary experiments were run to produce rhenium metal powder by oxidation of the concentrate to NH4Re04 followed by hydrogen reduction at elevated temperature.

Jan 1, 1982

By Keith G. Wallace, Oscar Codoceo

This paper describes the ventilation planning that was per- formed at the Barrick Gold Corporation, El lndio Mine. The El lndio Mine is located at an elevation of approximately 4,000 m in the Andes mountains east of the coastal city of La Serena, Chile. The ventilation planning program consisted of a detailed ventilation survey of the mine and the establishment of a correlated com- puter model. A series of network simulations were conducted to determine the optimum position, size, and configuration of new ventilation raises and main fan exhaust system. Modifications to existing mine infrastructure including; driving of drifts, slashing of airways, and positioning of ventilation controls were examined. Detailed costing information was developed to optimize the location of the new main exhaust raises and fan system. The final ventilation system is expected to increase the mine airflow from the existing 157 m=/s to over 315 mls. This increase was necessary to accommodate an expansion in mine production, diesel equipment utilization, and deeper mine development. Furthermore, the increased airflow was required because of the de-rating of diesel equipment and large air volumes necessary to dilute diesel exhaust at high elevation.

Jan 1, 1997

By Edward J. Hasenohr

Geochemical studies were under- taken in the Breckenridge mining district to test the effectiveness of soil and rock-chip samples in high- lighting known mineralization in the district, and in locating sites of possible porphyry-type mineralization, if such mineralization is present in the area. Soil sampling can be done more quickly and more cheaply, but it does not provide a direct site- specific sample of mineralized rock. In well-developed soils, supergene effects may mask and/or displace primary hypogene effects; and even in places where the soils are poorly- developed, as in the Breckenridge district, the masking effects may be felt. Soil anomalies, if present, likely will be of lower amplitude and more diffuse (widespread) than corresponding rock-chip anomalies. On the other hand, detailed rock-chip surveys are more time-consuming and expensive, even though they yield direct geologic information in addition to the chemical data. The goals of the combined soil and rock-chip programs were (1) to com- pare the data from the two; and (2) test the effectiveness in identifying significant chemical anomalies with respect to the geology of the district, as it is presently understood.

Jan 1, 1982

By Hun-Joon Sohn

Chemical metathesis and electrochemical reductive conversion of chalcopyrite in the presence of cupric ions were studied in sulfuric acid solutions for temperatures up to 90°C. The process results in the displacement of iron in the chalcopyrite lattice by copper ions with rejection of ferrous ions to the aqueous phase. The rate of reaction was found to be very slow, requiring subsieve-sized particles for extensive reaction to occur. The reaction was insensitive to copper ion concentration. Stirred ball milling of chalcopyrite introduces lattice strain. The reaction rate with strained particles was markedly higher than with annealed chalcopyrite. The reaction rate was found to be diffusion-limited, showing two distinct reaction stages corresponding to the formation of CuS (covellite) followed by Cu1.8S (digenite). The experimental activation energy for the first stage was 102 J (24.4 kcal) and the second stage 123 3 (29.4 -kcal) per mole. The rate-controlling process is diffusion of lattice ions, probably iron. The enhanced rate after milling is attributed to a recrystallization process which provides new paths for diffusion along dislocations and grain boundaries.

Jan 1, 1984

By John Batchelder

The Copper Canyon Cu-Au-Ag deposits include two geologically distinct hypogene ore bodies developed primarily in late Paleozoic rocks adjacent to a 38-m.y.-old potassic-altered granodiorite, whose emplacement seems to have been controlled largely by the Virgin fault, a north-striking normal fault. Widespread but subeconomic concentrations of sulfides as fracture and cavity fillings in skarn apparently preceded the final intrusion of the granodiorite. In the west ore body, metals reached ore-grade concentrations through the massive replacement of andradite by chalcopyrite, pyrrhotite, and pyrite mineral assemblages. The east ore body probably formed after the granodiorite reached its present level. Calculated 6dD values of water in equilibrium with primary and secondary biotites range from -76 to -99 per mil at temperatures indicated by d180 values from coexisting quartz and biotite. The lightest values are in secondary biotite from the east ore body. These data suggest that fluids associated with potassic alteration here were most likely composed of magmatic water mixed with some meteoric water.

Jan 1, 1976

By William R. Nash

Case histories of water problems in underground mine shafts and tunnels are outlined to illustrate varying degrees of sophistication in grouting techniques currently applied in such construction. The interception of water underground can be one of prior knowledge, i. e., the site investigation provides necessary data to plan a grouting program prior to construction start, or excavations may encounter "changed conditions" or unplanned water. The latter includes catastrophic inflows and emergency situations where the structural integrity of a building or concrete shaft lining are jeopardized. The presentation of this paper outlines some applications of grouting work in underground mine construction throughout the United States in a variety of geological provinces and for a variety of minerals.

Jan 1, 1984

By E. J. Wade

My subject is gold price forecasting and monitoring as an important aspect of gold marketing. While I 'm specifically addressing gold, it is understandable that many other commodities could be readily substituted. Gold marketing must be studied as three distinct processes, and it is my intention to cover each of these processes in turn. First I?ll cover the process of gold price monitoring and forecasting in some detail. In order to select a method, or combination of methods, to be used to sell gold a determination of the future price profile is essential. The profitability of the sales effort will be determined, to a large extent, by how accurately the future price behavior of the gold market has been forecast.

Jan 1, 1985