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"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By V. I. Lakshmanan

Crown ethers are gaining importance in separation technology specifically for rare earth elements (REE, La to Lu plus Y) and precious metals (Au, Ag, Pt, Pd, Rh and Ir) due to their specific binding ability, metal complex stability and high extraction efficiency. The selectivity of crown ethers in extraction of these metals depends on different factors, including the cavity diameter and nature of a donor atom of the crown ether, size and charge of the metal ion, diluents and counter ion. Demand for strategic REE and precious metals are consistently increasing in the world while the separation of these metals is most challenging tasks. In this paper, the use of crown ethers in separation of REE and precious metals, reaction mechanisms and simplified process flowsheets will be elucidated. New reagents with high selectivity for the separation of these metals are further expected to produce high purity metals.

By C. T. Baroch

As part of a general program for investigating all phases of titanium production, argon was substituted for helium in the reduction step at the Bureau of Mines pilot plant, which employed a modification of the Kroll, or magnesium-reduction, process. Argon was substituted for helium in 108 of the 140 batches of sponge made during 1 month's reduction operations for July 1954. Argon was substituted for helium satisfactorily, with only slight modifications in technique. Metal quality, feed rate of TiC14, magnesium efficiency, and average production per batch were closely comparable with either gas. Argon runs were slightly more troublesome because of the formation of condensable chloride complexes, which tended to plug feed and vent lines and to entrap deposits of lower titanium chlorides on the reactor-pot lids. These lower chlorides were objection-able because they were pyrophoric and created obnoxious fumes when pots were opened. When feed and vent lines became plugged care was required in poking or unplugging these lines to prevent air from entering the reactor. These problems were relatively minor, and continued development of reactors and techniques for the use of argon should further minimize objectionable side reactions obtained when argon is used.

Jan 1, 1956

By M. Jackson, R. McDonald, T. Osken, D. Robinson

"The addition of sulphidic materials in the leaching of nickel laterites has several potential benefits that include improvements in the rheological behaviour of the blends, reductions in the sulphuric acid and steam requirements, sweetening of the nickel grade of the combined feed material, and the option of using a range of sulphidic materials. The current study examines the oxidative processing of 30% w/w blends of nickel concentrate and nickel laterite ore at 250oC. In particular, the viability of using low oxygen overpressures was examined for significant amounts of nickel flotation concentrate, up to 12% w/w. Further to this the impact of process water quality, in particular the presence of chloride, upon the kinetics of extraction and the mineralogy of the residue were also investigated. This paper will present the results of preliminary work in this area.INTRODUCTIONThe use of sulphidic ore as a source of sulphuric acid during oxidative hydrometallurgical processing is not a novel idea and can be traced back over forty years (Seidel & Fitzhugh, 1968). A series of patents pertaining to application of this approach for laterite ores can be subsequently found (O’Neill, 1973; Opratko et al., 1974; Rodriguez, 2008a, 2008b; O’Callaghan, 2010; Liu et al., 2011) and a few of articles containing published data (Ferron & Fleming, 2004; Quinn et al., 2009). The use of pyrrhotite tailings as a source of sulphuric acid has also been employed for the leaching of converter slags (Perederiy et al., 2011).It is known that hydrometallurgical operations such as the HPAL plant at Murrin Murrin have added small amounts of sulphides as either transitional (mixed sulphide/oxide) ore or non-smeltable concentrate. This can improve the rheology (Rodriguez, 2009) and provide heat credits. However these plants are generally limited in their ability to add such materials due to their reducing nature and given under highly acidic conditions that the breakdown potential of the titanium used for the autoclave lining is significantly reduced. A suitable oxidant must therefore be present to ensure the potential remains sufficiently high."

Jan 1, 2012

By David A. Newman

The Geomechanics Classification (Bieniawski, 1979) was modified for entry and roof support design in underground room-and-pillar coal mines. Adjustment multipliers were introduced to incorporate the influence of strata weatherability, high horizontal stresses, and the roof support reinforcement factor into the existing classification system. Sixty-two case histories of both standing and fallen mine roof were collected from two mines in the northern Appalachian coalfield. Twenty-seven engineering and geologic parameters were recorded for each case. A partial correlation analysis was carried out on the cases to establish which parameters have a significant impact upon the supported stand-up time of coal mine roof. Survival analysis, a statistical technique used in medical research to assess the effect of a drug or treatment on a patient's life expectancy, was conducted together with stepwise multiple regression to derive values for the adjustment multipliers. A practical example is included to illustrate the application of the modified Geomechanics Classification to underground coal mine design.

Jan 1, 1985

By A. Kontopoulos

Refractory sulfide gold ores or concentrates require an oxidation pretreatment step to yield the contained gold amenable to the subsequent leaching step. The process options for oxidation pretreatment can be broadly classified as follows: roasting, high or low pressure oxidation bacterial oxidation, chemical oxidation, each with a number of alternative suboptions. Roasting and high pressure oxidation are being applied on an industrial scale; the stage of development of the other options range from preliminary laboratory to advanced pilot plant- In this paper, the major technical, environmental and economic aspects of the above processes are being discussed. Future industrial trends will also be considered. Particular emphasis will be placed on the treatment of arsenical ores and concentrates, where safe plant operation as well as, handling and disposal of the arsenic containing products and/or effluents 'and residues is of paramount importance.

Jan 1, 1990

By D. Hodouin

Jan 1, 1978

By K. S. Radcliffe

Results are presented for the first phase of an experimental program to study the feasibility of using acoustic velocity for predicting the state of stress in a rock mass. Compressional wave velocities were determined axially in cylindrical samples during uniaxial compression for several rock types conditioned in dry and water-saturated environments. Results indicate that in rocks containing compressible voids or cracks, substantial velocity change occurs with the application of stress in the lower (below 100 MPa) stress regime. The effect norm- ally is nonlinear, however, and diminishes to asymptotic values when cracks or voids become closed or with saturation. Empirical prediction equations were derived for each rock type by linear and nonlinear regression analyses, and correlation coefficients were calculated to determine the equations that best fit the stress- velocity data. The operational range for predicting stress using compressional-wave velocity appears to be within the range of vertical stress expected in most shallow to intermediate depth mining operations (less than 1,000 m). Based on the experimental results to date and theoretical considerations, it appears that the technology can be advanced to predict in situ stress based on acoustic P-wave velocity determinations in most mining situations.

Jan 1, 1986

By G. W. Birge

Fifteen coal samples, representing the Winifrede, Chilton, Alma, No. 2 Gas, Powellton, Eagle, Douglas, Sewell, Beckley, Pocahontas No.4, and Pocahontas No.3 beds in Wyoming County, and five samples, representing the Fire Creek, Pocahontas No.6, and Pocahontas No.3 beds in Mercer County, W. Va., were carbonized at 9000 C by the Bureau of Mines-American Gas Association (BM-AGA) method, and yields of products and physical properties of cokes were determined. Expansion characteristics of the majority of samples were determined in the Bureau of Mines sole-heated oven. Chemical analyses and agglutinating values were determined for all coals. The coals were mostly strongly coking and low in ash and sulfur content. Dry, mineral-matter-free fixed-carbon content of the Wyoming County coals ranged from 63.0 to 83.4 percent. The Mercer County samples were all low volatile in rank. Yields of carbonization products were generally in accord with yields from similar rank coals of the Appalachian region. Because of their expanding tendencies, most of the medium-and low-volatile coals would require blending with lower rank coal for normal coke production.

Jan 1, 1965

By D Misra, R Ganguli, S Bandopadhyay

The objective of this paper is to assess the accuracy and applicability of recent state-of-art methods such as the machine learning algorithms (MLA) for mineral resource estimation. Conventional methods such as geostatistics have been predominantly used in the mining industry for this purpose with varying success. Recent advances in the use of MLA have provided a fresh approach to obtain improved accuracy in the estimation of mineral resources. Two MLA methods: the neural network (NN) and the support vector machine (SVM) have been used to estimate a polymetallic ore deposit in Alaska.The general characteristic of SVM and NN emphasises the fact that they can approximate any multivariate non-linear relation among variables. Although neural network models are able to capture the nonlinear spatial relationships that may be present in the data, they are usually difficult to optimise under sparse data settings. Of the various NN alternatives, despite their effectiveness, the model selection and estimation process is typically difficult as it involves solving complex integration and optimisation of parameters. In support vector modelling (SVM), estimating of parameters involves optimisation of a convex cost function. The working principle of SVM makes it robust against noisy and extreme value data. At the same time, it can capture the spatial distribution of ore grade more effectively with careful modelling and selection of SVM parameters.The outcome of the MLA methods were compared to those of the geostatistical ordinary kriging (OK) application to study their generalisation ability. The comparison was made using the following goodness of fit criteria: mean-squared error; mean absolute error; mean error; and coefficient of determination. The results indicated that the MLA methods may improve the predictability of ore deposits and thereby reduce the inherent risk in mineral resource estimation.

Sep 26, 2011

By G. Kleyn

"Sub-standard practices and their adverse impact on safety performance remain a challenge in the South African gold mining industry. The purpose of this study was to investigate the root causes of sub-standard practices and the effect on safety performance in South African gold mines. The focus of the study was on the underground production operations at a gold mine in the Free State. The study consisted of three parts: a personal investigation into the causes of sub-standard practices at the mine, a comparison with the results of a cultural study performed at the West Wits mines, and a behavioural survey.The studies described in this article yielded similar results in terms of the key drivers behind sub-standard practices. It was found that substandard practices had a number of causes, and the origin lies within the habits, attitude, and behaviour of employees. Current methods of addressing sub-standard practices and improving safety performance were found to discourage employees from performing work safely and according to procedure. It was concluded that the lack of critical behavioural habits for the given work environment and job title could possibly be the primary reason for the occurrence of sub-standard practices. IntroductionSince the implementation of the Mine Health and Safety Act, 1996 (Act 29 of 1996) and the Mine Health and Safety Regulations, the South African mining industry has been striving to improve health and safety performance and has placed great emphasis on adherence to mine standards.The Act requires employers in the mining industry to report accidents, incidents, and dangerous situations to the Regional Principal Inspector of Mines in their area. The data provided by employers is captured and analysed by the South African Mines Reportable Accident Statistical System (SAMRASS) and made available for public viewing (Department of Mineral Resources, 2011).A review of the national mine-related accident statistics shows clearly that the South African gold mining industry has improved its safety performance markedly over the past decade, but is still facing major challenges (Figure 1). These include meeting the Mine Health and Safety Milestones (Department of Mineral Resources, 2011)."

Jan 1, 2016

By R H. Knight

Uncertainty in prediction and modelling of geological (physical) ore continuity in geometrically complex ore deposits is a key risk factor in mining. Reducing geometric uncertainty of hard-boundary ore/waste contacts and related geological features improves the efficiency of local mineral resource estimation and reserve calculation, mine/stope planning, ore control and in-mine exploration. Detailed underground mapping of serial-level drives provides a continuous record of the characteristics and contact configuration of ore, as well as crucial ore-related geological features that are required to resolve geometrical variability when closely spaced drilling proves inadequate or is cost-prohibitive. The mapping-based approach described in this paper re-establishes the focus on the geology of the orebody by incorporating high-value, detailed geologic mine mapping information. Mapped ore-related configurations and relationships, recorded on a succession of faces or on a series of levels, provide the basis for 3D interpolation and extrapolation of the local geologic continuity of an orebody. Correlative points representing locations of key ore-related geologic features on each face or level are linked by 3D polylines or trajectories forming a coherent geometrical framework. The coherent progression of geometric changes mapped by these trajectories reveals the overall ‘dynamic’ of the geometrical framework, as well as the spatial tendencies of its geological constituents. Distinct sets of ore control trajectories are selected from within the framework and are used in the construction of alternative geological ore continuity models. As mining proceeds, alternative models are evaluated, and are then either refined or rejected. The geometrical framework is used to evaluate theoretical models and practical heuristics, focus exploration targeting and inform and guide all aspects of mine geology in active mines. This approach also lends itself to analysis of global ore continuity in the re-evaluation of mature or abandoned mines. Its use is particularly effective in geometrically complex orebodies such as the West Branch orebody and the orebodies of No 2 mine of the Balmat-Edwards-Pierrepont zinc district, which are used to illustrate the method. CITATION:Knight, R H, 2014. A mapping-based approach to geological continuity prediction using examples from the Balmat-Edwards-Pierrepont Zinc District, St Lawrence County, New York, USA, in Proceedings Ninth International Mining Geology Conference 2014 , pp 65–76 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 18, 2014

By T. Mulja, Michel Boily, Anthony E. Williams-Jones, Pierre Pilote

"The Preissac-Lacorne batholith is composed of suites of early metaluminous calc-alkalic gabbroic to granodioritic intrusives, three late peraluminous monzogranite plutons and numerous Li, Be and Ta-bearing granitic pegmatites. The Lacorne pluton is dominated by biotite and biotite + muscovite monzogranites containing abundant Be and Ta-bearing granitic pegmatites (40-80% volume). The pluton is surrounded by swarms of unzoned or poorly zoned spodumene-rich pegmatite dykes. The La Motte pluton is composed of biotite monzogranites, biotite+ muscovite monzogranites and rare muscovite + garnet monzogranites. Li, Be and Ta-bearing pegmatites are less abundant than in the Lacorne pluton and are commonly associated with molybdenite bearing quartz-muscovite-K-feldspar veins. In the Preissac pluton, muscovite + garnet monzogranites and muscovite + biotite + garnet monzogranites are the dominant rock types. The pluton rarely contains granitic pegmatites and these are generally barren. However, numerous molybdenite bearing quartz and quartz-feldspar-muscovite hydrothermal veins are observed.Li, Be andTa-bearing pegmatites display a crude spatial zonation around their parent monzogranites. Spodumene-rich pegmatites are generally unzoned or poorly zoned and are confined to the surrounding metasedimentary or metavolcanic rocks or crop out in the early gabbroic to granodioritic intrusives surrounding the monzogranites. Ta and Be-bearing pegmatites are usually concentrated towards the margins of their parent monzogranites. The highly fractionated nature ofmonzogranites (high Rb/Sr, low K?Rb, Ba?Sr, Zr/Nb ... ), their peraluminous composition (corundum normative and muscovite bearing) and the numerous occurrences of Ta and Be-bearing pegmatite dykes represent important criteria for the exploration of fertile granites."

Jan 1, 1990

By P. F. Kerr

This is not a conventional professional paper. It deals mostly with personal experiences. These concern a background in applied mineralogy. Your committee asked me to do this. I accepted with a California enthusiasm which has since diminished with the approach of a Chicago winter. Nevertheless, I wish to thank your committee and also to apologize in advance for omissions and inadequate statements, as such a paper must possess. My introduction to applied mineralogy took place in 1922 at Stanford University. Physicists had recently demonstrated that crystalline powders would reflect x-rays in a systematic manner. Professor A.F. Rogers sug¬gested that significant x-ray reflections might be obtained from powdered opaque minerals. With the aid of Professor D.L. Webster in the Physics Department, I constructed an x-ray diffraction outfit. It was a crude affair, but it worked. Starting with 1924, we secured recognizable patterns of a goodly number of ore minerals (1,2,3). Today x-ray diffraction outfits are common, and a card system of mineral identification is constantly used.

Jan 1, 1981

By D. K. Steele

The domestic primary copper industry generates in excess of 600 million t of mining and mineral-processing waste annually. Most of the waste poses negligible environmental threat, but a small fraction, because of toxic or corrosive characteristics, may be subject to regulation under Subtitle C of the Resource Conservation and Recovery Act (RCRA) or other pertinent regulations. Among the wastes generated by various copper producers are flue dusts, slags, refinery-bleed solutions, and. acid-plant wastes. The U.S. Bureau of Mines (USBM) has researched methods to mitigate the environmental threat posed by copper-processing wastes while recovering valuable metals from these materials. Acid-leach processing of flue dusts has been demonstrated feasible along with sulfide treatment of liquid refinery wastes and acid-plant-bleed and gas-cleaning solutions to precipitate dissolved metals. In, addition, the feasibility of removing copper and molybdenum from slag, as well as stabilization of precipitated sulfide wastes by vitrification, have been investigated.

Jan 1, 2010

By Ian R. Morrison

"Abstract - The Izok Zn-Cu-Pb-Ag volcanogenic massive sulfide deposit is located 265 km south of Kugluktuk (Coppermine), Nunavut Territory, Canada, in the west-central Slave structural province. The Izok deposit is owned 100% by Inmet Mining Corporation and represents one of the largest undeveloped zinc-copper resources in North America. The Izok deposit is hosted within and near the top of a thick sequence of predominantly felsic pyroclastic rocks of late Archean age. The hanging-wall stratigraphy includes additional felsic volcaniclastic rocks, andesitic and basaltic flows, thin sulfide-rich iron formations, and turbiditic sedimentary rocks. The felsic volcanic rocks are intruded by intermediate dikes and sills, followed by gabbroic dikes and sills. Both intrusive suites are interpreted to be volcanic feeders to the overlying flows. All lithologies are subsequently cut by younger, irregular, granitic pegmatite and diabase dikes. The volcanic and sedimentary rocks are regionally metamorphosed to pyroxene hornfels grade. The massive sulfides occur within a large (kilometer-scale) Na-depleted sericitic alteration zone. The immediate footwall and hanging-wall rocks to the deposit are characterized by zones of muscovite- biotite-sillimanite, lesser chlorite-biotite-cordierite, and locally intense silicification and sodium metasomatism. All lithologies have been affected by younger Ca-metasomatism. As currently defined, the Izok deposit comprises a cluster of five complexly zoned composite lenses: the Northwest, North, Central West, Central East, and Inukshuk lenses. The first four lenses are amenable to open-pit mining, whereas the Inukshuk lens will require underground development. The total indicated mineral resource presently stands at 16.5 million tonnes with a grade of 2.2% Cu, 11.4% Zn, 1.1% Pb, and 60 g/t Ag. Inmet Mining Corporation is presently reviewing the economic feasibility of developing the property."

Jan 1, 2004

By J. E. Dutrizac

The dissolution of low-iron sphalerite, (Zn,Fe)S containing 0.08% Fe, in ferric sulphate-sulphuric acid media was investigated using closely sized fractions of crushed sphalerite crystals and sintered disks made from the crushed crystals. Linear kinetics are observed, and the predominant reaction products are ZnSO4, FeSO4 and elemental sulphur. The leaching rate increases systematically with increasing temperature, and the calculated apparent activation energy is 56 kJ/mol for the sized sphalerite and 54 kJ/mol for the sintered disks. The relatively high apparent activation energy suggests that the rate is chemically controlled, a conclusion supported by the insensitivity of the rate to the disk rotation speed. The rate increases as the 0.22 power of the Fe(SO4)1.5 concentration, and as the 0.22 power of the H2SO4 concentration. However, in the absence of ferric ions, the rate increases more significantly with increasing H2SO4 concentrations, and relatively rapid rates are observed in solutions containing >0.5 M H2SO4. In 0.1 M Fe(SO4)1.5-0.3 M H2SO4 media, the measured rate decreases with increasing sulphate concentrations, added as Li2SO4. The rate of dissolution of low-iron sphalerite is promoted by dissolved copper concentrations as high as 800 mg/L. In contrast, dissolved silver, even in the 0-2 mg/L concentration range, significantly retards the dissolution of the low-iron sphalerite.

Jan 1, 2008

By Thomas P. Battle

Titanium is the ninth most common element in the Earth's crust, yet only in this century has titanium come into use as an engineering material, particularly in aircraft structures, as the metal, and in pigments, as the dioxide. In this presentation, the metallurgical aspects of processing titanium-containing raw materials will be reviewed. Particular emphasis will be given to the ores and beneficiation techniques which lead to the production of titanium dioxide pigment, which accounts for over 90% of world titanium production.

Jan 1, 1993

By Satu Strömberg

Four different nickel concentrates were oxidized in a laboratory scale laminar flow furnace in simulated flash smelting conditions. The major nickel- and iron-bearing minerals in the con- centrates were pentlandite, violarite, gersdorffite, and pyrite and pyrrhotite, respectively. Thermal decomposition, ignition and oxidation behavior of nickel and iron sulfides were examined by using optical and scanning electron microscopy. General reactivity of the concentrates was monitored with sulfur removal which was most effective in violarite-based concentrate. Pentlandite-concentrates needed higher experimental temperatures for complete desulfurization and gersdorffite-based concentrate contained 5 - 10 % of the original sulfur even in the most oxidizing conditions studied (1 100°C, 50 vol-% 02). The reactivity of the iron minerals was found to depend on the other minerals present in the concentrate. In this paper, the observed re- action products and mineralogical changes are presented and preliminary conclusions of possible reaction mechanisms of nickel-bearing minerals are discussed.

Jan 1, 1997

By Charles D. Walcott

Jan 1, 1901