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By Unknown

With the present-day trend of rising labour costs and a lowering of production efficiency of workmen, it has become imperative that every effort be made to use manpower to the greatest advantage and to mechanize mining as much as possible. During the past few years this trend has gained much prominence in the Porcupine camp. In view of this, the executive of the Porcupine Branch considered that the Mechanical Movement of Muck would be a very timely subject for a Symposium. Accordingly a Committee was formed, with A. K. Douglass, Mine Superintendent for Delnite Mines, Ltd., as Chairman, and the Symposium was held in the Auditorium of the McIntyre Community Building, Schumacher, on March 25th last. Papers dealing with shovel loader and mechanical scraper operation at six of the larger mines of the camp were presented and discussed, and a tabulation was prepared giving data on the machines in operation at a total of eleven mines. The papers and tabulation, reproduced below, will doubtless be of considerable interest to operators of mines in all parts of Canada.

Jan 1, 1948

By J. Worden, D. Hughes, S. Smart, H. Zughbi

The enterprise wide optimization (EWO) of steelmaking and manufacturing is a multi-level, hierarchical problem which spans higher level corporate planning and scheduling through to the lower level operations of processes that produce and manufacture steel. External and internal system dynamics combined with process unit co-ordination create complex changing circumstances for the enterprise. This paper presents a scoping study as a prelude to enterprise wide considerations at an integrated steelworks to help inform the choice of appropriate model types and optimization techniques. The hierarchical, multi-level structure of the enterprise and the important spatial-temporal scales to consider are defined. Insights into the system were gained by analyzing a large set of dynamic operational data. Over two years of data were subject to both univariate and multivariate analysis with the intent of understanding the complex interrelations of energy flows on site, the inherent system dynamics of the energy network, system operational modes, aspects of planning and scheduling and the coordination between major processing units. This analysis was further used to evaluate the performance of the system in regards to energy utilization and understand the potential economic benefits derived from improved operational decisions.

Jan 1, 2015

By L. A. Homeniuk, R. Bonnar

"The Athabasca Basin has been the scene of an intense exploration effort since the late 1960s, resulting in the establishment of this area as one of the major uranium districts in the world.The A thabasca Group is of Helikian age and unconformably overlies metamorphic rocks of Aphebian and Archean age. Most of the known uranium deposits have a close spatial relationship with the unconformity, graphitic meta-sediments, major northeast-trending structures and the basin edge. It should be noted that, in regard to the latter, some of the Cluff Lake deposits are exceptions.The pre-Helikian rocks underlying the Athabasca Group have been divided into six Iithostructural domains. The known uranium deposits are concentrated in the Wollaston and Mudjatik domains in the southeastern portion of the basin.The orebodies typically have a narrow high-grade portion below the unconformity and a broader, lower-grade disseminated zone in the overlying sandstone. Over-all grades average over 1% U3O8 and our estimate of known reserves totals more than 400 million pounds of contained U3O8. Some of the deposits have high concentrations of other metals, including nickel, arsenic, cobalt and gold. Ubiquitous chlorite and clay alteration is characteristic of the orebodies.Other Proterozoic basins in Canada of similar ages and having analogous geological settings to the Athabasca have received far less attention. Although little of the known uranium mineralization in these basins is related to the Helikian unconformity, there may be an exploration potential for deposits similar to those of the Athabasca basin.IntroductionThe Athabasca sedimentary basin is located within the Churchill Structural Province of the Canadian Shield in Northern Saskatchewan. The basin is elliptically shaped and is approximately 800,000 square kilometres in area.The objective of this paper is to summarize the various elements in the genesis of the unconformity-type uranium deposits of the Athabasca Basin and to evaluate the comparative potential of other Proterozoic basins to host similar unconformity-type deposits."

Jan 1, 1982

By J. M. D. Wilson, W. Petruk, C. Coté

"The behaviour of minerals in the Mount Wright spiral circuit was investigated to find methods of improving iron oxide mineral liberation and recovery. The feeds, concentrates and tailings from rougher, cleaner and recleaner spirals in one mill line were sampled before and after the sizing screen openings were reduced from 2 mm to 1.6 mm. Sized fractions of each sample were analyzed with the MP-SEM-IPS image analysis system at CANMET to determine mineral quantities and liberation characteristics of the iron oxide minerals. Mass balance techniques were used to calculate stream recoveries of iron, silica, total iron oxide minerals, hema¬tite, goethite, quartz, ferromagnesian silicates, and liberated and locked total iron oxide minerals for each sieve fraction.The reduction of the sizing screen openings increased the ap¬parent liberation of the total iron oxide minerals in the screen undersize from 89% to 94% and raised the over-all iron recovery from 84.4% to 85.3%. Apparent liberation of iron oxide minerals in the cleaner sand also increased from 70% to 85%, but the – 75 µm fraction re¬mained the only fraction containing an acceptable amount of liber¬ated iron oxide minerals in each case. Due to limitations of spiral and grinding efficiency it is recommended that the cleaner sand be screened at 300 m, the +300 m fraction be reground, and the – 300 p.m fraction be rerouted to the rougher spirals.The amount of fine liberated iron oxide minerals (– 106 m) lost in the tailings was 46 TPH in mill line 3. This value represents 41 wt % of the free fine iron oxide minerals, or 7 wt % of the total iron oxide minerals in the spiral feed. Further work is needed to investigate the possibility of recovering this material by other methods.Middling iron particles (010 50%) and presumably free gangue in the size range –300+ 75 m tend to be recovered by spirals by entrapment."

Jan 1, 1990

By Kazuteru Tozawa, Robert G. Robins

"The stability of calcium arsenate is discussed in relation to the possible misuse of lime in the treatment of gold processing waste waters. Stability diagrams have been derived and experimental results cited to show that calcium arsenate has a higher solubility in neutral to alkaline solution than has previously been recognized and this solubility is further enhanced by the presence of carbon dioxide, bicarbonate or carbonate.IntroductionThe removal of arsenic from gold mine waste waters has been of interest for more than thirty years, but with the recent emphasis on clean water standards there has been renewed activity in relation to that problem. The processing of gold-bearing sulphides which contain arsenopyrite and other complex arsenic sulphides is well established. Initial roasting to oxidize the sulphides leaves the arsenic in the form of both arsenic and arsenic, in which forms it is soluble in the subsequent leaching stage. Further oxidation of the leach liquors is required before the well-established procedure of precipitating calcium arsenate with lime, which is carried out despite an immense lack of knowledge of the calcium-arsenic-water system.The solubility product and free energy of formation for Ca3(AsO4)2, which are to be found in recent and reliable sources of data, originate from the work of Chukhlansev, whose experimental determination of the concentration of calcium from the solubility of calcium arsenate in solutions of various pH yields the results plotted in Figure 1. This is the work which has resulted in a wide acceptance of the ""insolubility"" of calcium arsenate and the use of lime to stabilize arsenic in that form.Laguitton attempted to further elucidate the chemistry of the lime addition method for treating arsenical waste waters from gold processing operations. The low solubility product for Ca3(AsO4)2 was the basis for his examination of likely chemical equilibria in the system. Laguitton and other workers have not considered atmospheric carbon dioxide as an important component in this system."

Jan 1, 1982

By K. Karan

Oxygen reduction reaction in PEM fuel cell cathodes involves participation of three reactants - oxygen, hydrogen ions, and electrons. Electrochemical reaction in the catalyst layer is, therefore, influenced by how these species are transported to the reaction site. The two-phase boundary locations at which percolating networks of ionically conducting electrolyte and electronically conducting Pt/C meet are feasible reaction sites. The electrolyte phase also provides pathway for the transport of dissolved oxygen. Most of the 3-D models describe the catalyst layer as an ultra-thin layer, thereby, losing useful information on the distribution of electrochemical reaction rate. In this paper, we extend our previous work on 2-D cross-the-channel modeling of PEMFC cathode based on agglomerate catalyst layer. In particular, we take a closer look at the influence of proton conductivity on the reaction rate distribution in the catalyst layer. As well, we re-examine the role of anisotropic transport coefficient of the porous transport layer (PTL), commonly known as the gas diffusion layer, on the current density distribution under the channel and the rib of the flow-field plates. Results from both a 2¬D and a 3-D models will be presented.

Jan 1, 2005

By A. D. McKay

Uranium exploration expenditure in Australia reached a record level of A$220.5 million in 2008, which has subsequently declined to A$185.2 million for the year ended 30 June 2009. Recent discoveries include: Ranger 3 Deeps east of Ranger open pit (Northern Territory), Pepegoona and Yadglin sandstone hosted deposits (South Australia), and Thunderball project (Northern Territory). Australia?s Reasonably Assured Resources recoverable at costs of <US$80/kg U at June 2009 are estimated to be 1,210,000 t U, 4% higher than the estimate for December 2008. The main additions were in the south eastern portion of the Olympic Dam orebody. The Olympic Dam Expansion is based on a large open pit and will increase output to an annual capacity of 19,000 t U3O8; 750,000 t copper; 800,000 ounces gold. The Four Mile in situ recovery project was approved in July 2009. An ion exchange facility is to be constructed at Four Mile and uranium-bearing resins will be transported to the Beverley plant to recover the uranium. Recent developments at Ranger mine, and Honeymoon, Oban and Yeelirrie projects are discussed.

Aug 1, 2010

By E. M. Córdoba

The effect of the Fe3+ lFe2+ redox couple on the chemical and biological dissolution of chalcopyrite was studied. All the tests were carried out in stirred flasks with 100 mL of a ferric/ferrous sulphate solution, in the absence or in the presence of bacteria (iron- or sulphur-oxidizing) and at low (35 DC) and high (68DC) temperature. The initial redox potential was controlled between 300 and 600 m V Ag/ AgCI and silver was used as chemical catalyst. The results showed that the oxidizing action of ferric ion on the chalcopyrite was controlled, in all cases, by nucleation and precipitation of jarosites on unreacted particles. The tendency of Fe3+lFe2+ solutions towards equilibrium favours the activities of both ions to be equal. Consequently, the dissolution rate was faster at relatively low redox potentials (between 400 and 500 mY) than at high values (600 mY). In this sense, the presence of ferrous ion in the system is a key factor to control hydrolysis and precipitation of ferric ion. Unlike jarosite, the elemental sulphur produced during dissolution of chalcopyrite was porous and did not act as a diffusion barrier.

Jan 1, 2007

By Francoi Robert, Andre J. Audet, Alex C. Brown

"The Sigma gold deposit is in a band of deformed metavolcanic rocks that are cut by an irregular mass of porphyritic diorite and by narrow undeformed feldspar porphyry dykes. The gold is in veins consisting mainly of quartz and tourmaline with minor pyrite, carbonate, chlorite, scheelite and free gold. The results presented here concern the structural setting of the ore and are based on a study of the mode of emplacement.Two principal types of veins have been recognized: subvertical and oblique veins. Both types are contemporaneous, mechanically linked and postdate regional deformation. The sub-vertical veins are composed of numerous mineralized lenses that occupy the central part of ductile shear zones of great lateral and vertical extent. Normally, several lenses occur in the same shear zone. The vein material seems to have resulted from incremental filling of openings by repeated vertical movement along rupture planes developed in the central part of the shear zones.The oblique veins are small elliptical lenses of ribboned vein material which formed essentially by progressive vertical opening of oblique fractures. Two types of oblique veins are known: one is restricted to feldspar porphyry dykes, within which they are arranged in an en-echelon fashion; the other is of greater extent and is not restricted to one rock type, but tends, however, to occur in the more competent porphyritic diorite.Vein orientation and mode of formation suggest that both sub-vertical and oblique veins developed during progressive deformation associated with the formation of the ductile shear zones. The latter probably formed in response to a compression that took place late in the tectonic history of the host rocks at Sigma."

Jan 1, 1983

By Donald L. Mordell

Introduction A very large part of the world&apos;s fuel resources are in solid form, as various grades of ?coal, but an increasing proportion of fuel demands on this Continent and else-where are having to be met by liquid fuels. Convenience and, in many cases, cost weigh heavily in favour of the liquid: fuels, and there are many fuel burning applications where the use of coal would be impractical, such as for automotive or air transport. By extrapolating the present trends one might conclude that, in future years in Canada and the United States, coal will be used only in a few power stations close to coal fields. If such a state of affairs should arise, it will obviously prove embarrassing to those accustomed to make their livelihood from the winning and marketing of coal, but it is perhaps not so obvious that it must also prove an embarrassment to the nation. The major reasons for this are two in number. Firstly, if present coal production is to be replaced by oil production, a large capital expenditure is necessary, which must inevitably be paid by the consumer; and secondly, in times of emergency, large amounts of oil fuels are required for military purposes which cannot be achieved with solid fuels. It is obviously unwise, therefore, to discontinue the use of coal for those non-military jobs that it can do. If we examine the major fuel markets we find that there are three: Domestic heating Steam generation Transport by air, sea, and land For domestic heating, the extreme convenience of oil, in spite of its greater cost, has captured much of the coal market.

Jan 1, 1952

By Norman R. Paterson

"Under certain conditions useful gravity information of a reconnaissance nature can be obtained with-out measuring elevations by spirit level surveys on the ground. Gravity surveys can become part of a practical exploration program where high cost and slow progress previously hindered their utility. The advantages of the new elevation procedures are realized mainly in remote areas, in areas where ground transportation is slow and difficult and on surveys where the station spacing is large in comparison with the distance of the average optimum level shot. To utilize the advantages, transportation by helicopter or light plane is usually necessary. Methods of obtaining elevation control without leveling include: barometric altimeter survey; photogram-metric -APR spot determinations; methods involving the measurement of gravity gradients. The accuracies of these methods have been tested and compared with the normal accuracy of level surveys. It is felt that each method has its place in reconnaissance gravity work, particularly in the open areas of Northern Canada."

Jan 1, 1960

By G. E. Norman, R. E. Michelutti

"One of the major objectives of Falconbridge has been and continues to be, to minimize the impact of its operations on the environment around its Sudbury operations.The approach to achieving this objective and the results, are discussed under the following topics .I . Sulphur Dioxide Emission Improvements.2. Effluent Treatment Improvements .3. Effect of the Envrionmental Improvements.Sulphur Dioxide Emission ImprovementsHistoryThe rejection of pyrrhotite in the concentrators is one method of reducing the amount of sulphur to the smelter and therefore the sulphur dioxide emissions. In the 1950s and 1960s, Falconbridge developed the capability to remove 54% of this pyrrhotite. Numerous attempts were made to increase this amount by treating the pyrrhotite for recovery of nickel and in some cases elemental sulphur. Processes tested and operated were: hydrometallurgical pilot plant, roast-leach commercial operation and nickel-iron refinery. None of these processes proved to be commerically successful for both technical and economic reasons. Falconbridge therefore redirected its efforts to reducing sulphur emissions by improving its smelting process under The Smelter Environmental Improvement Project. A major component of this project was the installation of a sulphuric acid plant to recover the S02 in the roaster off-gases."

Jan 1, 1984

By D. J. Bowen

"The Great Dyke extends for 540 krn along strike, to unknown depth, and varies in width from 3 krn to 11 krn. Rb/Sr age determinations gives values of approximately 2470 Ma.The Dyke consists of a variety of mafic and ultramafic rocks, many altered to serpentinites. These include, from top to bottom, successions of gabbro/norites, pyroxenites, peridotiteslharzburgites, and dunites/picrites.The layers dip in from either margin, steepest at the edges (20°) and flattening toward the central sections. Four separate complexes are present. From north to south these are termed the Musengezi, Hartley, Selukwe and Wedza Complexes, and are described as &apos;boat-shaped&apos; or &apos;pig-troughed&apos;. All are similar in petrological sequences. Physiographically, the Dyke is spectacular in the north, where as a mountain range it meets the Zarnbezi Escarpment. Elsewhere in the central parts there is little surface expression and wide open treeless vleis. Dyke rocks cut through granite and schist belt terrain and are termed &apos;The Magnesia Belt&apos;.Vast mineral resources exist. These include chrome, asbestos, platinoids, nickel, copper and gold. Up to eleven chrome seams numbered from top to bottom occur in the lower ultramafic sequences. Seams are narrow at 10 em to 30 em but of high grade. The platinum occurs 10 m to 40 m below the norite/pyroxenite contact.A 60 m wide zone of Light Sulfide Mineralization (LSM) of less than 1070 sulfides extends from the lower gabbronorites into the upper pyroxenites. In this LSM, four enriched zones carry up to 5% sulfides. The most widespread is termed the Main Sulfide Zone (MSZ), below which is No. 2, No.3 and No.4 Sulfide Zones. The MSZ carrying pyrite, pyrrhotite and chalcopyrite is a multielement ore with components of PGE (pt-Pd-Rh), nickel, copper and cobalt, and gold and silver.Extensive exploration programs have been carried out and the intention is to begin large-scale mining. However, with Russia supplying metals to the western markets, South Africa&apos;s cutback on production, and an end to the Cold War, delays have arisen."

Jan 1, 1994

By M. G. Mena, M. S. Mena-Junio

Silver (Ag) filler is the most attractive choice among all the conductive fillers of die attach materials for the attachment of silicon devices because of its balanced properties and relatively low cost. However, a major problem of silver is that it electrochemically migrates in the presence of moisture and applied bias. In microelectronic devices, silver migration can occur between adjacent conductors/electrodes, which leads to the formation of dendrites and eventually results in short-circuit failure. In order to assess the reliability of these conductive fillers, an investigation for two types of Agfilled die attach materials was done using the water drop test at room temperature and using a 1000 hour temperature-humidity-bias (THB) test under 85 ºC and 85% RH conditions. Four different bias/voltages and six different electrode distance spacing were used. Both dendrite and cloud/lace-like growths were observed as a result of the electrochemical migration of silver, Water drop test results revealed that increasing the applied bias/voltage and decreasing electrode spacing causes migration to occur faster, thus resulting into shorter time to fail (TTF). It was also observed that the growth rate of the dendrites from the cathode increased linearly as the dendrite approached the anode, probably due to a combination of increased ion availability and electric field. A minimum applied bias of 3 volts was required for migration to occur in Epoxy A as compared to 2 volts for Epoxy C. The higher migration voltage requirement for Epoxy A was attributed to the higher volume resistivity of the said epoxy. In addition to the minimum voltage requirement, it was observed that a minimum electric field of about 1 volt/mm is required for migration to occur. The 1000 hour THB testing did not result into any failures. It is surmised that the presence of condensed moisture is another requirement for migration. Such condition is not present during the THB testing.

Jan 1, 2012

By Francoi Robert, Andre J. Audet, Alex C. Brown

"The Sigma gold deposit is in a band of deformed metavolcanic rocks that are cut by an irregular mass of porphyritic diorite and by narrow undeformed feldspar porphyry dykes. The gold is in veins consisting mainly of quartz and tourmaline with minor pyrite, carbonate, chlorite, scheelite and free gold. The results presented here concern the structural setting of the ore and are based on a study of the mode of emplacement.Two principal types of veins have been recognized: subvertical and oblique veins. Both types are contemporaneous, mechanically linked and postdate regional deformation. The sub-vertical veins are composed of numerous mineralized lenses that occupy the central part of ductile shear zones of great lateral and vertical extent. Normally, several lenses occur in the same shear zone. The vein material seems to have resulted from incremental filling of openings by repeated vertical movement along rupture planes developed in the central part of the shear zones.The oblique veins are small elliptical lenses of ribboned vein material which formed essentially by progressive vertical opening of oblique fractures. Two types of oblique veins are known: one is restricted to feldspar porphyry dykes, within which they are arranged in an en-echelon fashion; the other is of greater extent and is not restricted to one rock type, but tends, however, to occur in the more competent porphyritic diorite.Vein orientation and mode of formation suggest that both sub-vertical and oblique veins developed during progressive deformation associated with the formation of the ductile shear zones. The latter probably formed in response to a compression that took place late in the tectonic history of the host rocks at Sigma."

Jan 1, 1983

By Hans Chr Andersen

Almost every form of iron ore and carbon material has been used as a raw material in the production of pig iron in electric reduction furnaces. Experience derived from the operation of the large 33,000-kva. Tysland-Hole furnaces, however, indicates that production results are very much influenced by the raw material conditions. The author presents the principle pattern of the metallurgical structure of the interior of an electric pig iron furnace. On the basis of this, he discusses the variations of electrical and metallurgical conditions for the process which will take place with changing raw materials. The formation of a coke bed underneath the electrodes, and its influence on the furnace operation, is illustrated. Quality and grain size of the coke added to the charge will influence the build-up of the coke bed and will thereby also affect the electrical re-&apos;&apos;Elektrokemisk A/S, Oslo, Norway. resistance and reduction potential in the furnace.

Jan 1, 1963

By M. Gagné, F. E. Goodwin

The mining industry represents a significant investment in infrastructure of which steel plays a key role. Many structures in a mine are made of steel including shaft structures (buntons, station steelwork and headgear); stope structures (roof supports, pipe hangers); haulageway structures (ore transfer stations, electrical stubbies); and surface structures (plant buildings, tank supports, pipe gantries, conveyor belts, stacks, stockpile structures, stairways and railings). Maintenance of structural components can often be difficult because of the environment, including those where corrosive fumes persist, or limited access, such as in shafts where access is limited, or to short maintenance shifts or where limited working space is available. Thus a cost-efficient, long-lasting and maintenance-free protection system for steel should be specified. Galvanizing provides the required high-quality, long-term corrosion protection to steel. Galvanizing provides protection in two ways, first as a physical barrier to corrosion and secondly by means of cathodic or sacrificial protection that is unique to zinc. The dual nature of corrosion protection provided by galvanizing significantly extends the service life of steel even in the most challenging environments. The unique corrosion protection properties provided by galvanized steel will be highlighted with global mining application case studies.

Jan 1, 2015

By R. Pot

"IntroductionTHE PURPOSE of this paper is to discuss briefly the main logging and testing devices presently at our disposal, to point out some of their limitations, and to suggest possible improvements of the techniques.Some of the more important devices .are those that are used in:(1) Coring(2) Formation testing(3) Electric well logging(4) Radioactive well logging(5) Measuring of bottom hole pressures(6) Sampling of reservoir fluidsThe first four of these procedures are concerned with the well while it is in the process of drilling. The last two are carried out as soon as possible after a well has been brought into production and .at intervals during its life. My remarks will be concerned mostly with certain aspects of formation testing. The reservoir engineer is dependent on the information derived from these operations in order to obtain a clear picture of the conditions in a reservoir and to enable him to assess and forecast its future behaviour.Since any calculation is no better than the data on which it is based, not enough emphasis can be placed on the necessity for the testing and logging equipment to be of the highest quality and for the analysis of the results obtained to be thorough."

Jan 1, 1952

By S. G. Enns, E. W. Yarrow

"Situated about 200 km southeast of Juneau, Alaska, within the lower Stikine River region of northwestern British Columbia, the Galore Creek porphyry Cu-Au deposits are hosted by Upper Triassic to Lower Jurassic alkaline volcanic rocks and comagmatic syenite intrusions. Early and late breccias are also locally important host rocks for mineralization. Of the twelve identified Cu-Au deposits, the most important are the Central zone, Southwest zone and the Junction deposits with a combined resource of 284 million tonnes at 0.67 % Cu.The composition of the intrusive rocks is predominantly silica-undersaturated, alkaline, and metaluminous. Four intrusive suites are identified from field, petrographic and petrochemical data. Variation within suites or lineages can be explained by alkali feldspar fractionation. An oscillation between porphyritic and equigranular intrusions is suggested by the sequence of different intrusive lineages. The youngest intrusive phase is silica-saturated.A complex succession of intrusive and hydrothermal events is demonstrated at Galore Creek, with the most intense alteration and mineralization developing early in its history. In the Central zone, early Ca-K-silicate alteration, dominated by garnet, biotite, Kfeldspar, and anhydrite grades outward into K-silicate alteration. Both are locally overprinted by retrograde sericite± anhydrite± carbonate (SAC) alteration. The most intense Ca-K-si/icate alteration, a magmatic-hydrothermal breccia, and an early syenite intrusion are all coincident with copper mineralization in the core region of the Central zone. However, higher grade mineralization in the zone, exceeding 1 % Cu with more than 0.5 g/ t Au, is typically associated with intense biotite-rich, K-silicate alteration primarily hosted by altered volcanic rocks. The highest gold grades, commonly exceeding 1 g/t, are associated with bornite-rich mineralization situated in the northern and southern parts of the Central zone.Mineralization in the Southwest zone occurs as disseminated chalcopyrite within a late, diatreme breccia and adjacent K-feldspar porphyry. In the other satellite deposits, disseminated chalcopyrite and bornite occur in volcanic rocks with alteration that is similar to the Central zone."

Jan 1, 1995

By R. Poulin, M. R. Samis

Real options valuation is an alternative net present value framework that is able to incorporate both management flexibility and dynamic project risks. In this paper, management is considering the development of a satellite low-grade zone while operations in a developed high-grade zone continue. If the lowgrade zone is developed prior to high-grade zone exhaustion, mine capacity must be expanded before additional production from the low-grade zone can be processed. This expansion can be avoided only if low-grade zone development is delayed until the high-grade zone is exhausted. The real option model presented here allows the development and capacity expansion decisions to be reconsidered on a discrete half-year basis. It delineates price regions, for given levels of high-grade zone reserves, in which it is optimal to develop the low-grade zone, defer low-grade zone development and abandon the mine irrevocably.

Jan 1, 2006