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By Baafi EY

Geostatistics is now widely used in the mining industry in the estimation of ore reserves and terms like kriging, variogram and estimation variance are becoming well known. Ordinary Kriging (OK) has been found by some practioners to be a superior tool compared with other ore reserve estimators. However, kriging hasn't been the ultimate solution to difficulties which may arise in ore reserve estimation. Several additional geostatistical techniques have been recently developed for more efficient ore reserve estimation in some deposits, especially gold and other precious metals. These include indicator kriging and probability kriging which are useful tools to work with in a selective mining operation.

Jan 1, 1987

By Happ J. V

Factors affecting the rate of arsenic removal from lead bullion during softening processes were studied. Very high rates of removal could be obtained under conditions of intense agitation and ready availability of oxidant. Reaction mechanisms were proposed to explain the sequences observed. Selective removal of arsenic with minimal loss of antimony from bullion was favoured by a low temperature Harris process and oxidizing via a caustic soda medium.

Jan 1, 1987

By Robert B. Parsons

"The February 18, 1987, Federal Budget contains a proposed amendment which would simplify somewhat the ""successor corporation"" rules in the Income Tax Act. Despite this amendment, though, the important successor rules will continue to be relatively complex.IntroductionThe February 18, 1987, Federal Budget papers propose an income tax amendment whereby the so-called ""successor corporation"" rules would be revised by removing the present provision which limits the application of these rules to a maximum of two ""successions"". The successor corporation rules represent one of the most complicated sets of rules in the Income Tax Act. This month, Tax Notes seeks to explain these rules and the proposed amendment in simplified terms.Basically, the successor rules provide a mechanism for transferring unused exploration and development expenses from one taxpayer to another , in specified circumstances. The aforementioned limitation of two successions refers to the rule which allows a maximum of two such transfers with respect to any particular pool of deductions."

Jan 1, 1987

By Roshan B. Bhappu, Sukhendu L. Barua

The economics of developing and operating small precious metal mines are unique and require much more scrutiny than larger mines since a limited tonnage must carry a heavy burden of capital investment as well as operating cost per unit ton to be mined and processed. Moreover, potential operators of small mines do not have the required expertise available to critically evaluate the technical and economic aspects of their projects. In this paper, the authors have attempted to provide technical and economic guidelines for developing and operating small precious metal mines. Capital and operating cost estimates as well as return on investment are provided for various scenarios utilizing different mining and processing techniques.

Jan 1, 1987

When Australian voters elected a Labor Government in March 1983 the value of the Jabiluka uranium deposit as an asset of Pancontinental Mining Limited effectively evaporated overnight. The day before the election, Jabiluka was Pancon's principal asset, with the Company's 65% stake in the deposit having a market value of the order of $US1 billion. This value had been set by an agreement reached with a potential customer, who was prepared to pay $US150 million for 10% of Jabiluka. The months before the election had been the culmination of ten years of unremitting effort to bring what was then the world's largest reserve of high'grade uranium ore into production. These efforts had included two and a half years of negotiations with the local aborigines, as well as exhaustive environmental studies and conceptual mine planning. All domestic approvals required to develop the Jabiluka deposit had been given to Pancontinental and marketing efforts had successfully placed about 50% of the expected uranium production with overseas utilities. It appeared that Jabiluka was about to emerge as one of the world's great mining enterprises. The election of a government with an anti-uranium policy stopped Jabiluka dead in its tracks. Pancontinental's largest asset had effectively become worthless and the Company appeared to be facing a bleak future.

Jan 1, 1987

By James N. Prudden

Measurable physical characteristics of placer deposits include geological, geomorphological, sedimentological and mineralogical features which produce the complimentary ingredients with which one can formulate an economic evaluation of these complicated deposits within the confines of a well established geological model. Heavy mineral suite composition and character will change downstream from the provenance area and will compliment the related depositional environment. Careful attention to gold particle characterization during the exploration phase can indicate new source additions, enhance deposit evaluation methods and greatly assist in maximizing metallurgical efficiencies. Failure to recognize and measure these important features very frequently leads to frustrated and unrewarding placer evaluation goals. Increased general acceptance of sedimentology in the gological appraisal of ore bodies has progressed into the science of clastic sedimentalogy using measurable parameters to evaluate minable units. This branch of geology has developed as a tool in locating, defining, and mining alluvial concentrations of valuable heavy minerals. The repeatedly successful application of this valuable tool in conjunction with other classical geological methods can be directly related to the development of a geological model which formulates the distribution of detrital gold. This use of multiple geological techniques permits the transfer of routinely derived data to management. Standardized nomenclature permits the transmission of uniform information thereby promoting credible property evaluation. This approach enables organizations to critically assess large numbers of potential mining targets for definitive feasibility studies. Sedimentology must play an integral role in the evaluation of any alluvial deposit. The sampling problems associated with particulate gold are well known and frequently cause perplexing evaluation problems. Consequently, properly directed and executed

Jan 1, 1987

By Bruce C. Schepens

The Balsam Meadow Hydroelectric Project is currently under construction in central California. TMCI Construction, Inc. was subcontracted to perform the shaft enlargement and lining required for the elevator, surge and power shafts. Involved in the initial work was slashing the elevator and surge shaft into a previously excavated borehole. The elevator shaft then required a reinforced concrete lining and structural steel installation. Throughout the course of construction, numerous design changes occurred, necessitating a lining in both the power and surge shafts. These changes caused TMCI to design two underground hoisting systems to install these additional linings. An analysis of the construction methods used is now given. Introduction The Balsam Meadow Project consists of an underground hydroelectric powerhouse designed to provide additional capacity and energy to the Southern California Edison system during critical peak demand periods, and has the capability for pumped storage operation. The project is located in the Sierra Nevada Mountains about 55 miles northeast of Fresno. The project will divert water presently flowing from Huntington Lake to Shaver Lake to power a single 200 megawatt turbine generator. The approach used to the shaft slashing was governed partially by the strict CAL-OSHA requirements, which became more stringent after the recent Helms' Creek accident. A scaled down sinking plant was used to minimize economic risk and to simplify the excavation and lining scheme.

Jan 1, 1987

The Matakan Unit of New Ireland, Papua New Guinea is a highly fossiliferous lagoonal deposit containing numerous coal pods and lenses. The unit is strati graphically part of the massive reefal Lelet Limestone of Miocence age. These organic-rich sediments have a high hydrocarbon potential as evident from microscopical observations as well as Rock- Eval pyrolysis data. The coal is varied in regard to dominant macerals, vitrinite being predominant in some parts and pollen and spores present in sufficient proportions to constitute a cannel coal elsewhere. The highly fossiliferous carbo as Rock-Eval pyrolysis data. The coal is varied in regard to dominant macerals, vitrinite being predominant in some parts and pollen and spores present in sufficient proportions to constitute a cannel coal elsewhere. The highly fossiliferous carbonaceous sedimentary rocks associated with the coal are rich in pyrite expressed in the sulphur content (19.7 - 22.8%). A high primary productivity and anoxic sediment pore waters or just above sediment - water interface have given rise to sufficient organic matter accumulations to yield a potential hydrocarbon source rock. Atomic H/C ratios of the coals are between kerogen type III and type II mainly, expressing the mixed nature of the coal and that of the associated sediments is type II. Early generated hydrocarbons (exsudatinite) have formed from pollen exines filling the pollen cavities and in places filling micro- fissures in the surrounding vitrinite.

Jan 1, 1987

By Keith S. Olson

During 1982 and 1983, the Bureau of Mines concentrated its fugitive dust control research on haulage road dust suppression by newer chemi-cals relatively unknown in the mineral industry, innovative dust control designs for haulage trucks, chemical tailing basin stabilization, and combined chemical and vegetation tailing basin stabilization. Relatively unknown dust suppression chemicals and innovative aerodynamic modifications to haulage truck fender designs were tested on a Minnesota sand and gravel operation haulage road. Magnesium chloride salt at 95-pct control efficiency and a petroleum derivative at 70-pct control efficiency were effective in suppressing dust generated by haulage vehicles; however, none of the fender modifications were successful. Commonly used dust suppressant chemicals were tested on a Minnesota taconite tailing basin to reduce the dust lift-off during the spring and fall dry seasons. The most successful chemical was lignin sulfonate with a seasonal cost of less than $200 per acre to achieve 90-pct dust control. When chemical treatments for immediate dust control were com-bined with revegetation for permanent control, the most promising chemical treatment based on vegetation response was lime-neutralized lignin sulfonate.

Jan 1, 1987

By James P. Bennett

The Bureau of Mines investigated the role of imported natural flake graphite in dolomite-carbon refractories used in steelmaking processes. Fundamental engineering data were obtained to enable the evaluation of substitute materials. Changes in oxidation resistance (2,000° F), hot strength (2,750° F), and deformation under load (2,7500 F) caused by 10-wt-pct additions of five different kinds of natural flake graphite and increasing quantities (0 to 30 pct) of a 90-pct-carbon natural flake graphite were studied. Results indicated that carbon purity of 10-wt-pct-graphite additions did not influence hot strength or deformation under load. When the quantity of 90-pct-carbon graphite addition varied between 0 and 30 wt pct in a dolomite-carbon brick, hot strength was highest and de-formation under load lowest with 10-wt-pct additions. As hot strength test temperature was increased from 5000 to 2,750° F, the strength difference observed between 0-and 30-wt-pct additions of a 90-pct-carbon graphite became smaller. Additions of a boron-treated graphite caused significantly higher strength and lower deformation under load at high temperatures, while an addition of ball clay significantly reduced strength and increased deformation.

Jan 1, 1987

By K. Schonert

Jigging is a separtion process that has already been described by Agricola in 1556. Fine size material is normally treated in a hutch jigging process, in which the heavy particles are penetrating the jigging bed and are recovered in the hutch. In this process, a ragging consisting of the same or higher specific gravity particles is inserted upon the screen. The ragging is used mainly as a valve to maintain a constant upward flow of the water. Since the heavy particles should pass easily into the hutch, the ragging particles are up to ten times larger than the maximum feed size (1). In the fine size range - 1 mm the performance of jigs is mainly insufficient; some of the low density particles percolate the ragging while the hutch water flow prevents the fine heavy particles from entering the bed (2). By giving a thin layer of particles, which posesses a density sensitivity in case of certain adjustment of flow conditions, directly on the screen, the precision of separation can be increased. Stroke length and frequency have to be adjusted to give this filter layer a homogenous porosity between 60 and 70% during the pulsion phase, and the "en masse" lifting of the bed, as it is known in jigging of coarser material, has to be prevented (3). In this case, the jig cycle is only of minor influence.

Jan 1, 1987

By Richard V. Beck, Donald R. East, Jeremy P. Haile

In view of the increasing use of heap leach operations in the mining industry and the critically important performance of the leach pad liner in both the economic and environmental aspects of the design, it has become essential that the designer fully understand the factors affecting the performance of the liner. Minimizing the loss of pregnant solution through the leach pad liner is obviously of paramount importance to the economic efficiency and environmental compliance of the heap leach operation. Losses through the liner are a function of the hydraulic conductivity of the liner material and the hydraulic gradient across the liner. This applies to both natural and synthetic materials. The hydraulic gradient across the liner is a function of the build-up of solution above the liner, which in turn is determined by the permeability of the heap material, the slope of the liner, the drainage path length and the leachate infiltration rate. A relationship incorporating each of these parameters and their effect on the hydraulic head acting on the liner has been developed in terms of the Dupuit criterion, assuming one- dimensional flow with vertical accretion.

Jan 1, 1987

By R. D. C. Shone

Consideration is given to the technical and economic feasibility of freeze desalination as a technique for the simultaneous provision of ice to cool deep mines and for the desalination of mine water. Freeze desalination has not been developed fully or commercially. For sea-water applications, it may not offer significant advantages over other methods of desalination but, for the unique mining application, a single dual purpose plant that produces desalinated ice could offer significant cost savings over combinations of separate desalinators and ice-makers. The current status 01 freeze desalination is reviewed, and the important aspects relating to mines are discussed. Some freezing processes that could be suitably modified are described. The possible use of conventional ice-making machines for desalinating mine water is also discussed.

Jan 1, 1987

By A. Sainato, S. J. Schatzel, D. M. Hyman, J. C. LaScola

The Bureau of Mines determined the gas contents of 135 oil shale samples obtained from approximately 630 ft of core drilling. Drilling was done within a projected mining zone of the Cathedral Sluffs Mine, located in the Piceance Basin of western Colorado. Methane contents were determined by the modified direct method, which can measure the volumes of several gases released from or reacted with mine rock without destructive sample treatment. Over the duration of the test, nitrogen was largely unreactive, CO2 increased slightly, oxygen decreased markedly, and methane increased more than the total increase of all contained gases. The gas volumes were normalized per unit sample mass and are given in cubic centimeters per gram. Common time irzdices for test duration of 3, 40, and 125 days were used to compare methane desorption among samples. The means of the sample populations for these indices were 0.0316, 0.114, and 0.195 cm3/g, respectively. These quantities are lower than those reported in a Bureau emissions study at the Horse Draw Mine in the Piceance Basin. Oil shale samples that were gas enriched beyond the mean methane contents frequently contained bitumens and pyrite.

Jan 1, 1987

By G. H. Roybal, J. M. Barker

Humate mining in New Mexico is a small industry [455 m3 (16,079 cu yd) valued at $395,894 for 1983] with three mines active in 1985. Either humate (carbonaceous claystones rich in organic matter) or weathered coal ("leonardite") high in humic acid are mined. The humic acid content needed to meet consumer specifications determines which type is mined. The humate and "leonardite" now mined in New Mexico are used primarily as soil conditioners or as drilling mud additives. The potential resource for both are very extensive within the coal-bearing formations of the San Juan Basin in northwest New Mexico.

Jan 1, 1987

By Derek M. Hutchinson, Don Zeni

The construction of shafts by blind drilling has been made cost effective by advances in technology and experience. The techniques of blind shaft drilling are discussed and a brief history presented. A recent use of blind shaft drilling to access a small gold ore body in Australia is described. Finally, the most recent developments in drilling machinery are reviewed together with possible applications in new and existing mines.

Jan 1, 1987

This paper is directed at the problems flowing from Australia's capital gains tax (CGT) on the disposal of exploration and mining tenements both in Australia and overseas. It will seek to identify the issues and give some idea of the dollar consequences of decisions lacking forethought. The paper should not only be seen in the context of Australian tenements. CGT applies to the disposal of any assets by an Australian resident anywhere in the world. Offshore incorporated companies are not necessarily free from CGT risk where it can be shown that control management and control of the relevant company is in Australia. Also the disposal by non residents of Australian tenements are potentially caught by CGT. Some will ask what has taxation got to do with a valuer who merely determines the value of assets. These days no determination can be blind to the consequences. Whether the consequences can encourage a movement in value is another thing dependent upon the circumstances; but? A role of an experienced taxation consultant is to point out parameters within which associated professionals can work. The parameters will vary from case to case, but these when clearly indicated may be of help to persons such as valuers. When one comes down to it real estate salesmen are never wrong. They have a feel for the market and almost through self fulfilling prophesies achieve sales at their guestimates. Whether they could have achieved higher considerations become virtually academic in the process. Of course I am not suggesting that tenement valuers can be compared to real estate salesmen, or am I? What is the value of a tenement? Is it the DCF/NPV type of generated value based on a large number of variable factors (ie what one may call the fundamental value)? Or is it what another may pay to purchase that tenement if it were on the market at an instant point in time? How big is the market, the quality of the bidders, the size of their purses, the needs of the buyer for comfortable fit, the premiums for foreigners, the standard of the marketing, the industry intelligence level of the bidders, the obligation to farm/sell down? The list goes on endlessly. One question must be.asked-"Is a range of values acceptable for tax purposes". ie Would any tax consultant ever provide a valuation to the Australian Taxation Office that indicates three or more possible values ie

Jan 1, 1987

By Alan G. Mayton

The Bureau of Mines conducted one of the most extensive studies on surface mine illumination to date, to assess the illumination needs of mobile surface mining machinery with respect to the visual tasks required of machinery operators. Field Investigations were performed at 22 surface mining operations, coal and metal-nonmetal, within several mining regions of the United States. Visibility and illumination were measured for 159 visual tasks performed by equipment operators on or near 57 surface mining machines, including draglines, shovels, blasthole drills, bulldozers, loaders, haul trucks, graders, scrapers, and several service-type vehicles.

Jan 1, 1987

By Margaret R. Egan

The Bureau of Mines experimentally burned Pittsburgh Seam coal and other combustible materials found in mines in order to obtain a better knowledge of their emission products. These experiments were conducted in the Bureau's intermediate-scale fire tunnel, which simulates environ-mental conditions in underground mines. Smoke characteristics, gas concentrations, mass loss, and ventilation were measured. From these values, heat-release rates, particle sizes, obscuration rates, combustion yields, and production constants were calculated. This information was sought as part of a comprehensive study of combustible materials that will ultimately advance the design of more efficient fire detection and suppression systems. The coal combustion measurements presented in this report, together with previous analyses of wood and transformer fluid fires form a data base by which future studies of other mine combustibles can be compared.

Jan 1, 1987

In line with the recommendations of The AusIMM/AMIC Joint Committee Report in 1981 Isa Mine ore reserves are quoted in proven and probable categories (recoverable ore reserves). Internal reporting considers geological mining and extraction reserves in terms of proven and probable categories. Proven reserves are subdivided into detailed and confirmed ore. External reporting includes a possible ore category (not a reserve). The basis for these divisions is the spatial distribution of sampling data. Proven ore is defined by data 80m apart or less and probable ore by data 80m to 150m apart. Within the proven ore category detailed ore is defined by data 40m apart or less and confirmed ore by data 40m to 80m apart. Kriging is used to provide tonnage and grade information for the currently producing 1100 and 1900 orebodies. Kriged cross sections are initially produced to coincide with existing geological sections and are used for stope design. Stope ore reserves calculations are ideally performed at three discrete design stages, which in order of increasing accuracy are: preliminary design (PD), final design (FD) and ring design (RD). At each of these stages Kriged meshes incorporating the most recent sampling information are produced for reserve calculations. Historically derived mining and extraction factors are applied both to global reserves and individual stope reserves to reflect changes in geological and mining conditions as well as the sequencing of extraction. These factorised reserves are then inserted into the computerised reserves inventory system (RIN). Monitoring of individual stope performance continues into the production stage with input from planning, research, survey and production personnel. This allows actual extraction factors to be derived for comparison with predicted factors, providing some measure of stope performance.

Jan 1, 1987