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By L. G. Austin

The model originally proposed by Austin, et al., has been modified in the light of further investigation of the breakage laws in SAG milling. The model uses a fully-mixed reactor for short L/D mills and calculates the breakage of small particles by the nipping action of balls and pebbles. The autogenous self-breakage of larger lumps is treated as an effective means of fast breaking rock and much slower breaking rock. Experiments show that fast autogenous breakage can be treated as a first-order breakage with an overall specific breakage rate which incorporates fracture and chipping. Similarly, slow breakage incorporates fracture and abrasion. Autogenous breakage is cushioned by the accumulation of fine material. Simulation results are compared to results from tests in a 2 m diameter continuous pilot-scale SAG mill. Future work is discussed.

Jan 1, 1985

By Nathaniel Herz, R. J. Adamson, C. M. Romanowitz, Frank W. Jr. McQuiston, C. D. Hoyt, Robert S. Shoemaker, P. H. O’Neil

1. INTRODUCTION In this section, precious metals are defined as gold, silver, and the platinum group metals comprised of platinum, palladium, iridium, osmium, and rhodium. If the first three years of the 1970's are the criteria, gold, silver, and platinum seem destined for a bright future. Gold advanced in price from the historic figure of $35 established in 1934 to over $100 per oz (1973). For the five years 1966 to 1970, silver consumption exceeded production by about 50%. The silver price appears to be definitely on the uptrend, and a price of over $3 per oz seems probable. On this basis (at 1964 costs) the United States has an estimated 5 billion oz of unmined silver. The fresh burst of interest in platinum with a surge of renewed price strength (end of 1972) is due to the activity in the automobile emission control area, where platinum re¬mains the front runner in the catalyst area. Some international financial experts believe that governments will not rush into reform of the monetary system, and "Special Drawing Rights" (SDR's) will gain increased standing as international mone¬tary reserve assets. Gold will continue to be reviewed as the ultimate store of value and will remain the global monetary base. Devaluation of the U.S. dollar caused by imbalance of import payments over ex¬ports is the basic reason that the price of gold will likely remain above the $90 per oz figure for the balance of the 1970's. Gold and silver usually occur intimately associated, and recovery methods are often closely related; however, they were assigned sepa¬rate chapters, because the major production of each metal is from ore deposits classified as either gold or silver. For example, the gold ore occurrences in South Africa, the world's leading gold producer, have a ratio of gold to silver of approximately 10 to 1. The ores at the Homestake Mine, Lead, S.D., the largest U.S. gold producer, are predominantly gold with a ratio to silver of approximately 5 to 1. Silver in each example is a byproduct. By this same classification, the largest U.S. silver producers are the silver ores of the Sunshine, Galena, and Lucky Friday mines in the Coeur d'Alene district, Idaho. However, the largest single-mine silver producer in the Free World is the Kidd Creek Mine at Timmins, Ont., where the occurrence is with sulfides of copper, lead, and zinc. Thus, the major gold production of the world is derived from those ores classified as gold ores; whereas, less than one-half of the silver production is from silver ores, and only a small percentage of the silver production is from gold ores. 2. GOLD Gold, the noblest of metals, has been mined for thousands of years. Its chemical symbol, Au, is derived from the Latin "aurum," meaning "shining dawn." A precious substance because it is one of the rarest metals, it has unique physical properties: it does not tarnish; it exceeds all other metals or alloys in malleability and ductility; it is a good conductor of electricity and is one of the most nonreactive metals. Its greatest strength is its indestructibility. It is the only metal mined at depths exceeding 10,000 ft. Since the early 1800s, its chief role has been as a medium of exchange, providing the basis for interna¬tional trade. In the past 15 years, however, gold has emerged as a useful industrial commodity. This role has been fortified by the estab¬lishment of a two-tier pricing system which maintains monetary gold prices at an established U.S. Government price, with industrial gold being priced higher by the free-market system. Occurrences and Production Native gold furnishes most of the world's production, since gold forms stable natural compounds with few other elements. Neverthe¬less, the metal is widespread with traces of it found in seawater and in the ashes of plants and animal material. Next to the native metal, the tellurides have been the most important gold-bearing minerals; these include calaverite, krennerite, slyvanite, hessite, and nagyagite. Native gold is invariably alloyed with more or less silver, but it is exceptional to find any other metal in the alloy. It is found in veins associated with quartz, calcite, alunite, other gangue minerals, and with various sulfides. Sulfide minerals in order of frequent associa¬tion are: pyrite, galena, chalcopyrite, sphalerite, arsenopyrite, tetrahe¬drite, and pyrrhotite. Small amounts of metallic gold are commonly disseminated through such sulfides. When considerable amounts of silver occur in gold, the mineral electrum is formed. In a few deposits, gold and mercury form natural amalgam. Native mercury is formed by weathering from cinnabar and other mercury minerals. Among the minerals sometimes mistaken for gold, pyrite, marcasite, and especially chalcopyrite may be men¬tioned. The flakes of biotite and other micas, especially when partially oxidized, also may imitate it closely. World gold reserves never have been estimated carefully. Esti¬mates indicate that present world reserves approximate I billion oz, of which about 60% occurs in South Africa and 20% in the USSR. World gold output is dominated by South Africa which produces two-thirds of the world's production from reserves that are adequate to maintain existing output levels. South African gold output comes from approximately 50 large underground operations that mine and mill 70 to 80 million tons of ore annually to recover 30 to 32 million oz of gold. The USSR is the second largest gold producer, followed by Canada and the United States (see Table 1). Gold production in the United States and Canada rose to high levels in the 1930's, following the increase in price from $20.67 to $35 per oz and with an abundance of good labor due to depression in other industries. Production of over 10 million oz in 1940 was behind only that of South Africa. World War II caused a precipitous drop in gold output due to the imposition of War Production Board Limitation Order L-208 issued in October 1942, which caused over 9,000 gold mines in the United States to shut down, most of which never reopened. The U.S. Treasury, which suspended purchases of newly mined gold in 1968, had been the sole buyer of U.S. produced gold since 1934. This created the two-tier pricing system, and in March 1972 the President signed into law a bill authorizing a $3 increase in the official price of gold to $38 per oz. In February 1973 the President ordered a second devaluation of the dollar, amounting to about 10% which raised the official price to $42.22 per oz. The erratic development of the gold market, which has seen the

Jan 1, 1985

By R. D. Brown

There are techniques for separating aluminum alloys from mixed scrap, but there are no efficient ways to separate wrought aluminum from cast aluminum. This Bureau of Mines report describes a novel technique for separating mixed aluminum alloy scrap into cast and wrought aluminum alloy fractions. The technique, which uses conventional heating, fragmentizing, and screening equipment, exploits differences in the mechanical properties of cast and wrought aluminum alloys at elevated temperatures. The cast alloys become brittle at high temperatures owing to intergranular melting of regions of eutectic composition. This melting begins to occur as the solidus temperature for each alloy is reached. Solidus temperatures for casting alloys generally range from 520° to 580° C, but are above 600° C for most wrought alloys. Thus, the casting alloys are easily fragmented while the wrought alloys remain ductile in the proper temperature range. Starting with a mixture containing approximately 80 pct cast and 20 pct wrought alloys, fractions of 100 pct cast and 98 pct wrought have been produced.

Jan 1, 1985

By Dan Nilsson

The Luossavaara "Research Mine" is the First large, offensive effort in mining research conducted by the Swedish state. Over a 5-year period, 1981-1985, the Swedish Mining Research Foundation works in the "Research Mine" on the development of mining systems and equipment. The purpose is to bolster the competitive strength of the Swedish mining and mining equipment industry. The previosly abandoned Luossavaara mine in Kiruna, in northern Sweden, has been reopened especially For the project. Ore is mined and sold during the course of the research project. The income from the sales covers a large portion of the costs for teh research.

Jan 1, 1985

By Hans W. Schreiber

INTRODUCTION At the end of the day, the decision by the sponsor to proceed with a project and to seek financing, or the decision by the financier to grant financing are made on a judgmental basis. Cash flow projections, sensitivity and risk analysis, the innumerable ratios applied by the financier, the so-called feasibility study, etc. are all only tools, and the degree to which they affect decisions is as highly varied as are the personality differences and business conduct and outlooks of the persons who render the decision of "go or no-go". The independent consultant, then, is expected to provide an additional increment of credulity and/or reliability to the "tools" which others will use in reaching a decision; the consultant is really not in a position to directly recommend a "go or no-go". PROJECT FINANCE INGREDIENTS The project finance situation has basically three ingredients: - The project; - The inherent risks attendant with project failure; - The parties. The project, to be viable for financing, will have certain essential characteristics, namely: 1. Clear title or rights to the mineral; 2. Proven definition/establishment of mineral quantity; 3. Financial viability; 4. Physical access consistent with financial viability; 5. A market for the product at a price and for the quantity consistent with financial viability; 6. Transportation/shipping from the project facility to the market at a cost consistent with financial viability; 7. Availability and demonstrated expertise of the developer of the facility; 8. Demonstrated expertise of the operator of the facility; 9. Production processes do not involve unproven new technology; 10. Availability of management personnel; 11. The property and the facilities have value (and thus can be used as collateral); 12. Government approvals/support, as required, will have been obtained; 13. The political environment is essentially friendly and stable; 14. The owner(s) of the project have the financial, strength to make equity contributions consistent with total required investment capital and project risk; 15. Backing by credit support other than that of the financier (i.e. guarantees); The inherent risks of failure are (Nevitt, 2nd Edition); 1. Completion delays with consequent delays in the generation of revenue 2. Cost overruns 3. Technical failure 4. Financial failure of contractors 5. Government interference 6. Uninsured losses 7. Increased price or shortages of raw materials, supplies 8. Technical obsolescence 9. Loss of competitive position in the market place 10. Expropriation 11. Inadequate/poor management The parties directly or indirectly integral to the project financing are: - The mineral rights owner - The developer - The operator - The equity investor

Jan 1, 1985

By J. G. Asbury

Broadly conceived, the demand for electricity depends upon three sets of variables: (i) the growths of the many individual demands for energy services; (ii) the competitiveness of electrically driven technologies in meeting these demands; and (iii) the energy-conversion efficiencies of installed electrical technologies. The first set of variables establishes the size of the potential market; the second, the market penetration of electrical equipment; and the third, the quantity of electricity required to operate the equipment. All forecasts of electricity consumption ultimately depend upon inferred or assumed relationships to describe the future behavior of these variables. This partitioning of the demand-forecasting problem is conceptually useful and will guide the discussion presented in this paper. However, it is also something of an oversimplification. Examined in more detail, the electricity fore-casting problem is exceedingly complex. The variables mentioned above are, in turn, found to depend upon more fundamental sets of demographic technological, resource, and policy variables. The demand projections developed by the major forecasting services are usually developed in terms of these underlying variables, which themselves must be independently forecast.

Jan 1, 1985

By G. Shore

Radiation grafted structures my be fabricated to contain ion exchange groups selective to an ion complex. Proper choice of substrate and monomer will provide selective ion exchange with differing physico and chemical properties. Grafting a selected monomer to the proper polymer will provide selective ion exchange with assured chemical protection of the substrate. Ion exchange systems utilizing radiation grafted structures have been fabricated to ''capture'' gold, silver and palladium from dilute solutions. Other ion exchange systems can feasibly be produced to remove other precious metals. Rotating Cathode Technology is used to recover the metals from their regenerating solutions are pure metal foil.

Jan 1, 1985

By J. Boldy

Discovery of the Delbridge massive sulfide deposit in the Noranda district of Quebec resulted from an appreciation of the significance of a mercury leakage halo as a lithochemical pathfinder to blind ore. Its location, relative to a geologically inferred ore-bearing horizon within complex volcanic stratigraphy was also a factor. Systematic sampling of microfractures present in outcrops delineated a diagnostic anomaly, drawing attention to an area considered prospective for buried ore. The massive sulfide deposit was subsequently found to be blind and topped at the 110-m (360-ft) level.

Jan 1, 1985

By D. Malhotra

Most primary-molybdenite producers use a selective-flotation process in which molybdenite is floated from the ore while other sulfide and non-sulfide gangue minerals are depressed in the same step (Figure 1). The process was developed at the Climax mill. Reagents used in the rougher-flotation stage include vapor oil (collector), syntex (surfactant), pine oil (frother) and occasionally sodium cyanide and Nokes reagent (depressant). Rougher concentrate is upgraded by cleaner flotation to produce market-grade molybdenite concentrates. Reagents used in the cleaner flotation stage are Dowfroth 250, vapor oil, sodium cyanide and Nokes reagent. The development of the flotation reagent scheme at Climax and the role of the reagents have been well described by Born, et al, (1976) and Malhotra, et al, (1976, 1977a, 1977b, 1977c, 1980). The hydrocarbon collector, vapor oil, accounts for approximately 50 percent of the total molybdenite-flotation reagent cost. Because vapor oil sources are limited, and the cost of vapor oil has increased significantly over the last decade, several studies have been done to evaluate alternate oil-based collectors and/or blends of collectors which would produce similar metallurgical results at a reduced cost, or increase the overall molybdenite recovery at the same cost (Smit and Bhasin, 1983; Hahn, 1969; Smith and Bhappu, 1971). The approach taken in the present study was to evaluate alternate non-oil based collectors and collector systems that are less expensive than vapor oil.

Jan 1, 1985

The Bureau of Mines evaluated short-delay coal mine detonators manu-factured by three domestic companies for electrostatic sensitivity, strength, and no-fire current level. Electrostatic sensitivity was studied in pin-to-pin and pin-to-case modes employing lO-kV potential. Strength of detonation was measured in the Bureau's underwater test fa-cility. No-fire current was measured using a constant-current power supply unit. Test procedures and experimental data are included.

Jan 1, 1985

By Hebbard GJ

Vertical crater retreat mining is being used at Zinc Corporation, Limited and New Broken Hill Consolidated, Limited for pillar recovery between previously mined and filled stopes. In order to increase productivity in the older lead lode areas of the mine, particularly in the lower grade sections around the keel of the orebody, score form of longhole stoping was considered necessary.Due to poor ground conditions in the country rock surrounding the ore and the requirement to provide sane wall support during mining, primary VCR mining has been utilised in these areas.At Zinc Corporation, several stopes have thus far been mined by a hybrid longhole stripping - VCR method.

Jan 1, 1985

By Ellsworth R. Spencer

A lightweight fiberglass feed leg for hand-held pneumatic percussion rock drills has been fabricated and tested by the Bureau of Mines. Its lighter weight facilitates easier handling of the rock drill apparatus, thereby reducing the potential for back injury to the driller and in- creasing drilling productivity. Current hand-held feed leg drills of the same class are 50 pct heavier than the Bureau-devised feed leg drill, which is comprised of a reduced-noise drill and the fiberglass feed leg. In-mine tests of the fiberglass leg showed that its performance and cost are comparable to those of standard aluminum feed legs.

Jan 1, 1985

By Robert B. Parsons

"This month, Tax Notes focuses on two features which can potentially ""dress up"" a new issue of common shares to make the shares more attractive to investors. Attaching warrants to a share issue is a relatively common practice, and recent years have seen an imaginative variety of different kinds of warrants, some of which can be subject to somewhat different tax treatment . A less common financing strategy which certainly deserves some consideration involves the possibility of utilizing ""Share Purchase Tax Credits "" in conjunction with a new share issue.IntroductionPrevious subjects covered in Tax Notes have dealt with flow-through shares and other tax angles which can make equity issues more appealing to potential investor s. Two other techniques which can add zest to a new stock issue involve the utilization of warrants and ""share purchase tax credits"" (or SPTCs). This article takes a brief look at the better known subject of warrants and the lesser known matter of SPTCs.Of course, this paper presents only a relatively general summary of the income tax implications of warrants and SPTCs, and is not intended to be a definitive commentary on all of the detailed and complex tax issues that might be relevant in the circumstances."

Jan 1, 1985

By John H. Puffer, Andreas H. Vassiliou

The Bemco mine area is within the Precambrian igneous and metamorphic rock terrain of the New Jersey Highlands province. Rocks In the area include a pyroxene granite, a hornblende granite, a quartz-oligoclase gneiss and a pegmatite and its host rock, a lens of amphibolite which becomes a sulfide-rich pyroxenite near the ore zone. The ore-bearing zone occurs along the hanging wall and foot-wall contact of the pegmatite which was emplaced discordantly into the amphibolite-pyroxenite.

Jan 1, 1985

By John C. Robison

INTRODUCTION Sensitivity analysis is a means of gauging the impact of individual risks on a financing. Key risks can occur in three time periods: - Feasibility, engineering and construction phase; - Start up phase (usually through completion); - Operating phase (post completion). If a company has agreed to cover these risks prior to completion, then less attention will be paid to the sensitivity of the project in the first two time periods. Since the operating phase of the project generates cash for both operations and debt service and generally does not begin until two to six years after the loan is signed, it is wise to look at scenarios other than the projected "base-case" scenario in order to determine the project's capability to operate successfully under a broad range of probable future events. Lenders are compensated at a fixed spread over their borrowing base and generally are not compensated if the project is successful beyond expectation. They are also subject to the loss of principal plus funding costs if the project performs below expectation. Because of this, lenders establish sensitivities around the parameters of conservative projections developed in the project feasibility studies and the cash flows resulting from these projections. The initial cash flow projections should demonstrate the project's ability to meet cash costs, debt service requirements (principal and interest), and still have sufficient cushion to cover contingencies such as strikes, price fluctuations, force majeur situations, etc. (See Schreiber, Chapter 10). The selection of the level of sensitivity analysis to be performed is the result of both objective criteria, including probabilistic analysis applied to the technical parameters, and, of equal importance, subjective criteria applied by the analysts, especially with regard to the economic and financial parameters impacting the project cash flows. RISK SENSITIVITY Assumptions used in the cash flow projections should be realistic. Risks identified by the lenders should be identified and cash flows prepared to assess whether these project risks are acceptable. Typical project risks include the following (see also Chapter 9): - Sufficient reserves - quantity and quality - Product price - Production level - Operating costs - Availability of energy and supplies - Transportation and infrastructure requirements and costs - Interest rate - Completion risks - Tax level - Political risks - Cost over-run risks - Operator experience - Management - Technological risks - Environmental permits and risks - Foreign exchange risks - Insurance coverage - Equity of sponsors - Inflation rate - Capital expenditure during project life In order to see the effect on the cash flow projections, each risk should be analyzed for its impact on the cash flow generating capacity of the project. Sensitivities can be examined to see if the resultant cash flow projection will meet the lenders minimum credit standards. 1.Reserve Sensitivity In general, lenders will not assume the reserve risk. However, it should also be noted that lenders receive loan proposals in which reserves range anywhere from proven to possible. Sensitivities are not generally run for various reserve levels and reserve estimates are either considered acceptable or not acceptable by the lenders.

Jan 1, 1985

By J. George Gregr

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

Jan 1, 1985

By Daniel Connor, O&apos

The Cal-Sag Relief Sewer is a 2.6 m (8 ft 6 in.) diameter 9.1 km (5.7 mile) rock tunnel bored in dolomite for the Metropolitan Sanitary District of Greater Chicago. Included in the project are 18 shafts varying in depth free 70 m (230 ft) to 41 m (135 ft). This paper discusses how Healy/Vanessa reduced costs by eliminating conventional hand excavation by hoisting muck from a high production Robbins TBM (Tunnel Boring Machine) through small diameter drilled shafts and using a trailing rail-utility backup system.

Jan 1, 1985

By G. S. Derrickson, R. A. Golobic

Any type of agitation within a confined vessel is primarily concerned with two parameters: a level of agitation describing the homogeneity of the constituents (whether it be suspension or mixing), and the energy efficiency with which this level of agitation is accomplished. The following is an attempt to present a solution to the problem of adequately defining and optimizing these properties. A discussion is included of the application of good design practices to the determination of a mechanically efficient shape to the blade elements of the propeller. These practices, excluding several appropriate modifications, have been known, but not well understood, in aircraft fluid mechanics for a number of years. Having optimized the direct impartation of energy to the medium being agitated, attention is turned to one of the more perplexing phenomena of multi-phase systems - definition and prediction of agitation levels. The result of recent study and testing is a method of scaling that the authors believe provides a lucid understanding of governing physical parameters within the agitator itself, allowing one to scale up and down with confidence.

Jan 1, 1985

By Robert J. Willard

This chapter includes tables from 1983 that were not available in time for publication of the 1983 Minerals Yearbook, but does not include corresponding tables for 1984. The value of raw nonfuel minerals produced in the United States during 1984 was estimated at $23.2 billion, an increase of $2.1 billion over the value for 1983. This is the second consecutive year that the value has increased, and except for a decrease in 1982, the value for each year has increased since 1971, or 12 out of 13 years. In 1984, 16 out of 21 metal commodities increased in output while 5 metals decreased; 14 metals increased in value and 7 decreased. Of 46 nonmetal commodities. 37 increased in output while 7 decreased and 2 remained unchanged; 35 nonmetals increased in value and 11 decreased. These statistics are grounds for continuing the cautious economic optimism expressed in 1983. Despite the note of optimism, however, numerous problems plague the mining industry, weakening its stability and inhibiting its growth potential. The problems are a complex mix of international and domestic factors that have been building in the recent past, but have become even more troublesome in 1984.

Jan 1, 1985

By C. Allen Born

INTRODUCTION As the title of this paper suggests, the author does not believe that risk can be managed. Rather, the objective is to identify the risk which will be present in a given venture and assess the level of that risk which is acceptable. More often than not, the risk which is present is subject to little or no modification. After identifying and measuring the risk a corporation will decide to accept it and proceed in such a way that it will be less exposed, or it will decide not to proceed at all. The exercise for a corporation is different only in degree from everyday judgements made by average people in average situations. However, that word "degree" means that it is considerably more complex on the corporate level. There is good reason for the additional complexity of corporate risk evaluation. The variables influencing a company's decision can be more numerous and the penalties for miscalculation much greater than those normally encountered by an individual. It should be understood that no analysis of risk, certainly not one as brief as the following, can do more than touch on some of the high points. Before examining the sorts of risk which affect the development and operation of specific mines, let us consider the broader aspect of the term with which mining companies, and all other business corporations, must deal. Companies must determine their long-term objectives and strategies within the context of a constantly changing world. To plot their direction they must attempt to read the future by seeking answers to questions such as: How will society evolve? Which businesses will thrive? In which of these should we place our emphasis? If a company hopes to be around five or ten years from now it must make the attempt to answer such questions in order to judge the impact of changing patterns in the evolving business environment. Information is available to allow the lessons of the past to be projected on the future. We have data on birth rates, economic booms and busts, patterns of conflict within and between nations, drought and other forces of nature as well as individual events which cannot be predicted, but which over time, do seem to occur in regular cycles. Ultimately the question "where will we be and what will we be doing a decade from now?" must be answered by one or more senior people with responsibility for the company's future. The compilation and interpretation of hard data by competent support staff, can only be used up to a certain point in determining future corporate strategy since there will be alternative possible futures and a high degree of risk will always remain. At this point those elusive qualities of experience, instinct, and - "gut feeling" - become important factors in choosing a long-term corporate direction. The goals of a company have a significant bearing on its attitude towards risk. This in turn dictates the "hurdle rate of return on investment" which a project decision-maker will require. The hurdle rate is the minimum-discount-percentage-rate applied to forecast cash flows to give a present value of zero to the All-Equity-Funded Investor. The feasibility study for a project is a fundamental tool in the management of risk. An experienced team has an established and well-understood set of ground rules for the preparation and assembly of a feasibility study. The necessary degree of conservation is built in at all levels of study data and, if the project is technically feasible, the hurdle rate becomes a catch-all measure of risk in a base-case project cash flow.

Jan 1, 1985