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Traditional finance theory recommends discounted cash flow (DCF) analysis as the tool to value mineral properties. Yet, the calculated values by this method are usually lower than the market value. Finance theory also advises us to develop an undeveloped project immediately if its net present value is positive. Most projects are, however, only developed when the economics are highly favorable. This paper uses insights from option-pricing theory to explain these divergences between market behavior and finance theory and presents simple modifications to discounted cash flow analyses that will lead them to produce correct valuation and development timing advice.

Jan 1, 1999

By D. Potter

In 1990, Freeport Exploration began regional reconnaissance exploration programs in Irian Jaya, the easternmost province of the republic of Indonesia (Fig. 1). Irian Jaya occupies the western half of the island of New Guinea. Freeport was awarded an initial contract of work that totaled 2.6 million hm2 (6.4 million acres). The company was subsequently awarded additional concessions that added 1 million hm2 (2.5 million acres). The concessions require work commitments and periodic relinquishments. Due to these relinquishments, Freeport’s current land position totals 1.9 million hm2 (4.7 million acres). Freeport began the exploration program to locate additional Grasberg deposits, the largest deposit in the Ertsberg district. But the company recognized that other types of deposits could be present in the largely unexplored area of Irian Jaya.

Jan 1, 1999

By D. A. Day, H. L. Marsh, P. J. Stephens, C. A. Wiggins

Lightweight cellular grout backfill behind pipe-in-tunnel has been gaining increased acceptance in the tunneling industry and has proved to be both practical and economical. Two successfully constructed projects, the Upper Scioto West Interceptor Sewer (USWIS), in Columbus, Ohio and the Benbrook Pipeline Tunnel Project in Fort Worth, Texas will be discussed. The projects represent two different but successful applications of lightweight cellular grout backfill. The USWIS placed the grout behind precast reinforced concrete pipe, in water bearing limestone, and in close proximity to residential water wells. The Benbrook Project placed grout behind 6,096 meters (20,000 feet) of steel pipe from just two locations, eliminating major surface disruption typically associated with the placement of pumped concrete.

Jan 1, 1999

By S. H. Castro

In 1997 Chile was the world's largest copper mine producer with around 3.4 million metric tomes of copper. Conventional technology (conminution-flotation- smelting-converting-electrorefining) for copper sulfide ores was used. For copper oxidized ores hydrometallurgical processes (heap leaching-solvent extraction- electrowinning) were employed. Consequently, the most important waste effluents include flotation tailings, gaseous emissions, smelter slags, acidic and alkaline wastewater, electrolytic sludges, solid residues from leaching, etc. The introduction of stricter environmental regulations are forcing the Chilean industry to minimise the generation of waste and promote cleaner production. Gas emissions such as SO2 and arsenic from smelters and process wastewater are the major problems at this stage. The environmental impact assessment of gas emissions in all six largest smelters namely Chuquicamata, Caletones, Potrenllos, Ventanas, Paipote and Chagres led to design a "decontamination plan." The implementation of this plan resulted in (i) the installation of sulfuric acid plants for SO2 abatement and (ii) the installation of electrostatic precipitators to remove arsenic oxides condensed from cooling gases. The aim of this paper is (i) to describe the type of waste associated to the various stages of the metallurgical processes and (ii) review the main abatement technologies used in medium and large size companies.

Jan 1, 1999

By Adam J. Gesing

The eddy current separator (ECS) is designed to separate nonmagnetic (nonferrous) electrically conducting (metallic) particles from nonconductive residue. Nonferrous metallic particles are repelled out of the material stream passing over the eddy current rotor (ECR). The rotor is housed in a fiberglass composite outer shell that serves as a conveyor head pulley. This results in the desired metaVnonmeta1 separation. The behavior of ferromagnetic particles, mainly iron and iron oxide (i.e. rust), is quite different. These particles are strongly attracted to the magnets and the smaller particles tend to align their long axis in the direction of the magnetic flux. Since the direction of the flux changes with the passage of each magnet pole, the small particles spin at very high rates causing wear of the belt and of the composite outer shell housing the ECR. Large particles, when trapped under the ECS belt, cannot spin, but can be heated by the eddy current effects and subsequently can burn through the composite outer shell. We discuss the practical implication of this behavior of iron and rust on the design, performance and maintenance of eddy current separators.

Jan 1, 1999

By S. R. Reddy

Thennodynamic properties of several quaternary systems are calculated using our recently modified Margules equations. The modified Margules equations are expressed up to infinite order in the vicinity of solvent. Quaternary system of one solvent and three,solute partials are derived. First order interaction coefficients of binary, ternary and cross -interaction parameters of quaternary system are used to'evaluate the partial functions. In the original fonn of Margules equations,derived partial functions are convergent and same 'as Unified ,Interaction Parameter Fonnalism. But considering up to infinite order of the Margules coefficients, the functions are divergent, in order to overcome this restriction, Margules equations are modified to get consistent equations. Derived partial functions are thennodynamica Hy consistent with Maxwell and Gibbs Duhem relations. The derived logarithmic activity coefficient of the solvent and solutes are consistent with the ternary systems. The calculated data, ie., activity coefficient values of nitrogen and interaction coefficients are in good agreement with the data of Fe-Cr-V -N. Fe-Ni-V -N, Fe-Cr-Ta-N and Fe-Ni-Ta-N systems.

Jan 1, 1999

By John Stankus

Seam interaction in multiple seam mining has significant effect on entry stability. The remaining pillar in an old working usually creates a high stress concentration zone while the gob creates a stress release zone. A good panel layout should take advantage of the stress release effect created by old workings. This paper presents two case studies of multiple seam mining. The Jennmar Finite Element Analysis System (JFEA) is utilized to analyze the seam interaction effect and identify the mess concentration and relief zones Panel layouts are designed bad on the results of the finite element analysis Appropriate roof support system are also designed for different seam interaction areas.

Jan 1, 1999

By P. A. Davidson, D. J. Short

"In this paper we describe a 'non-contact' electromagnetic nozzle suitable for sprayforming and gas atomization processes. In such processes there is a need to control the flow rate and diameter of the liquid metal jet whilst minimising contamination of the stream. This can be achieved using an electromagnetic valve, which partially levitates the jet in freespace, using a segmented cylinder surrounded by an induction coil. This valve will significantly enhance the quality of the titanium alloys and nickel-based superalloys used in sprayforming and gas atomization. This paper describes the design and test of a laboratory prototype valve based on experiments performed with liquid tin.1. Introduction In many industries there is an increasing need for clean, high quality metals and alloys based on titanium and nickel. Two important processes are: 1) Spray deposition which allows the liquid metal to be converted to a near-net shape, thus alleviating the need for subsequent forging and extensive machining and; 2) Powder production of titanium by gas atomisation.In centrifugal spray deposition of titanium (see figure 1) the metal is induction melted in a cold crucible. The crucible consists of a number of water-cooled segments, which allows the high frequency magnetic field of the coil to pass through the crucible, and into the melt. The charge is melted by the induced eddy currents. Locally at the crucible walls the liquid metal solidifies, and is contained within a. 'skull' of its own solid, thus reducing contamination from the crucible wall. Once melted the metal is poured through an electrically heated graphite nozzle and into the spray forming chamber. The principal limitation of the process to-date, however, is that it currently uses a graphite and /or ceramic nozzle to direct the flow of liquid metal to the atomizing disk and as such there is considerable risk of nozzle erosion with inevitable effects in terms of contamination of the melt stream and variability in flow conditions. In this research programme we develop a. non-contact electromagnetic nozzle, which will totally eliminate refractories and/or ceramic materials from the melting and casting process. This will greatly enhance the technological capabilities of sprayforming and gas atomization processes."

Jan 1, 1999

By J V. Lawless

Two types of low sulphidation epithermal deposits that have different gangue mineralogies and ore shoot geometries are recognised. One has laterally near-continuous ore shoots over a significant vertical interval that consist of quartz, chalcedony, pyrite, minor base metal sulphides and adularia, with electrum. The other type of deposit has discrete near-vertical ore shoots of a lesser vertical extent, that consist of quartz, pyrite, base metal sulphides, sulphosalts, electrum and in their upper parts barite, which are enclosed in veins of earlier quartz. The gold mineralisation in both deposit types is considered to be a co-precipitate of pyrite, with that in the first type of deposit produced by prolonged boiling in an upflow of a hydrothermal system (Upflow Deposits); an example is Waihi in New Zealand. The other type is produced by mixing, a deep water primed for gold deposition by prior limited boiling, with an iron-bearing oxidised condensate of the steam released by the boiling, in an outflow of a hydrothermal system (Outflow Deposits); an example is Thames in New Zealand. Early recognition of these different types of deposits can be used to develop mineralisation models of predictive value on which to focus exploration drilling. Early recognition of an Upflow Deposit promotes an extensive program to delineate the extension of the main ore shoot. In contrast recognition of an Outflow Deposit requires a more intensive approach to find individual ore shoots which, although smaller than those found in Upflow Deposits, may be high-grade, particularly if there is earlier mineralisation present to act as a protore.

Jan 1, 1999

By M. Gaft, G. Panczer

Sedimentary francolite and magmatic apatite are characterized by specific laser-induced time- resolved luminescence, which allows phosphate to be distinguished from accompanying dolomite. The "selective window" parameters are: he, = 337 nm, delay time after laser pulse is 0.5-5 ps, and detection spectral range is 400-525 nm. In the case of nonuniform distribution of phosphate minerals, it makes it possible to accomplish lasero- luminescent sorting and to receive intermediate product with a lowered dolomite contents.

Jan 1, 1999

By R. Fritschen

In order to investigate locations, source parameters, and source mechanisms of mining induced seismic events, a local network of seismic stations was installed at a coal mine in the eastern part of the Ruhr District (Germany). The recorded events were located with the help of an anisotropic velocity model, which accounts for the fine layering of the carboniferous strata. Most of the events took place about 50 m above the working Luise 76-10. Their locations correlated with the advancing working face, and the number of events increased when pillar edges were undercut. The source mechanism, i.e., the orientation of the fracture plane and the direction of displacement on this plane, could be determined for several seismic events. The majority of them was characterized by a fracture plane parallel to the working face and an almost vertical dislocation on this plane towards the goaf a mechanism resembling the breaking down of the hanging wall. The fracture plane had a dimension of about 100 m. Probably the fracturing of a sandstone layer, located approximately 40 m above seam Luise, was responsible for the observed seismicity

Jan 1, 1999

Cost accounting information is used primarily for (1) planning, control, and performance evaluation; and (2) managerial decision-making. Incremental analysis is a tool for managerial decision-making. It is designed to estimate future financial performance, namely the benefits and costs associated with alternative courses of action. Decisions may be distinguished as pertaining to short-term or long-term activities. Long-term activities frequently focus on capacity decisions and the attendant capital budgeting processes used to quantify the financial effects of these decisions. Short-term decisions typically address short-range production quantity and pricing issues, outsourcing, selection of the optimal mix of products, inventory management, and the acceptance of special orders. This chapter addresses these short-term decisions.

Jan 1, 1999

By Sandra K. Zacharias

Brass, a deliberate alloy of copper and zinc, has been known since before Roman times. There are two main methods of making brass: (1) Cementation or calamine process - crushed zinc ore (calamine, ZnC03 , or calcined calamine, ZnO), is mixed with charcoal and small pieces of metallic copper and heated to about 900°C in a closed crucible, (2) Alloying - metallic copper and zinc are melted together in a reverberatory furnace. According to most modern authorities (e.g. Smith and Forbes 1955), the calamine process was the only one used in western Europe prior to the 18th century. At that time, the alloying technique began to take over, because metallic zinc was successfully produced on a large scale for the first time. Previously, this had been a problem because zinc vapourizes at 906°C or about the same temperature at which it can be reduced from its ore. Thus, some means had to be devised to collect and condense the zinc vapour (Tylecote 1976). Metallic zinc was known, however, earlier than the 18th century A.O. Several early finds have been made, including a rolled sheet of metallic zinc found in excavations at the Athens Agora dating to the 3rd to 2nd century B. C. (Farnsworth et al. 1949). The Chinese were producing zinc by at least the 10th century A. D. and, by the 17th century, Chinese zinc ingots were being imported into Europe by the Dutch East India Company (Needham 1974). Metallic zinc is also mentioned in several European documentary sources from the 16th century (e.g. Paracelsus, Agricola). This study traces the changes in Western brass making methods from Classical to Renaissance times by examining documentary and archaeological evidence.

Jan 1, 1999

By Murray Malott

The Sheppard Subway extension is currently being constructed in Toronto, Canada for the Toronto Transit Commission (TTC). McNally International Inc., in a joint venture with PCL and the Foundation Company of Canada were awarded the Twin Tunnels contract of the Sheppard extension. The Twin Tunnels project is approximately 4.4 km in length and consists of two separate twin bore drives each 3.3 km and 650 m in length and approximately 400 m of cut and cover construction. This paper presents a case history of the construction of the soft ground tunnels through the complex Toronto glacial deposits using two 5.9 m outside diameter Lovat earth pressure balance (EPB) tunnel boring machines.

Jan 1, 1999

By Everett Clausen, Richard Walker

CIL/EVANinc and the Canadian Explosives Research Laboratory of the Government of Canada have evolved a concept developed by Research Energy of Ohio, into a landmine neutralization system that is the most innovative to date.

Jan 1, 1999

By W. M. Williams

"Although manganese is a metal virtually unknown to the layman, it is hardly necessary to point out to the engineer the importance of manganese in modern metallurgy, an importance intimately linked with iron (and steel), the basic materials of engineering construction for hundreds of years and certain to remain so for long into the future. World steel production will approach and perhaps reach 1 billion tons/year in the 1980s; with a manganese content between 0.5% and 1 % in ordinary steels, and more in specialty steels, manganese use worldwide will soon approach 15 million tons annually. Manganese was discovered and isolated in Sweden in 1774 by Karl Wilhelm Scheele (who also discovered molybdenum), but the element was only of scientific interest for several decades. By the early part of the nineteenth century, however, manganese oxide had become commercially available and was in use for colouring glass and for the production of chlorine. Commercial application in metallurgy appears to have been limited to the manufacture of crucible (or ""cast"") steel, a highquality product made by carburizing wrought iron, and melting it in small batches to make ingots which could be rolled and used for special applications, e.g. for the manufacture of fine tools or for ""steeling"" the cutting edges of implements such as wrought iron axes and chisels.* However, it was not until Bessemer's epoch-making invention of cheap steel in 1856, and the dramatic expansion of the steel industry thereafter, that manganese assumed the importance that it holds in modern steelmaking."

Jan 1, 1999

By J. A. Cox

The Ashanti mine is located within the Lower Proterozoic Birimian of Ghana, and covers a concession of 474 square kilometres at its Obuasi operations which comprise large scale underground, surface and tailings treatment facilities. The mine had operated for a century at the end of 1997 and had produced nearly 25 million ounces of gold, a significant proportion of which came from the underground operations. This paper covers the strategy under which exploration for both surface and underground mineral resources was instrumental in enabling the expansion programme to go ahead together with the methodologies and results that have developed in the exploration area over the last five years. Within capital expenditure constraints, the objective on surface is to replace oxide depletion with a secondary objective of discovering new sulphides in areas other than the main trend. In the underground, the exploration strategy is directed at replacement of both underground and surface sulphide depletion, minimising finding costs and assisting the development of long lead time infrastructure. The exploration application describes the methodologies in use for both surface and underground exploration that have been developed in recent years in conjunction with a description of a major review conducted in 1995/96 of the exploration database using an integrated approach, geochemistry, geophysics, remote sensing and structural geology. A revisit of soil geochemical data in particular, and modification of exploration methodology led to the success in finding relatively significant new oxides in 1997.

Jan 1, 1999

By A. W. Laughlin, C. R. Mansfield, M. J. Ferris, D. A. Cremers

Laser-Induced Breakdown Spectroscopy or LIBS can be used to provide exploration companies with precise and accurate chemical analyses in the field, in real-time, resulting in major time and cost savings. Using a Field-Portable Analyzer(FPA), anomalies can be followed up immediately while crews are still in the field. Lower limits of detection (LLDs) are element dependent, but many are sufficiently low to be useful in exploration. LLDs in ppm for selected elements of interest are: Be-2, Cu-3, Zn-20, As-200, Sb-500, Pb-30, Ag4,Mo-100, B-33, Ti-500, V-350, and Cr-l. LIBS analyses require little or no sample preparation.

Jan 1, 1999

By T. Guler

Turkey has important celestite reserves in Sivas. These reserves have gypsum and/or calcite as gangue minerals. Celestite-calcite ore cannot be concentrated by gravity methods due to the low efficiency of gravity methods in fine sizes. Research was tried to concentrate celestite to a market grade by flotation. Parameters such as pH, particle size, dosage and types of collector and depressant were examined. Cyanamid A-845 and Na-oleate combination as collector, sodium silicate as depressant, and Aerofroth-65 as frother were found as the optimum flotation reagents. By applying 3-stage cleaning, a concentrate assaying 95,34 % SrS04 was obtained with 84,93 % recovery.

Jan 1, 1999

The development of a robust belt sampling strategy and protocol inunderground gold mines is a fundamental requirement for effective grade quality control, ore accounting and mine-mill reconciliations. As part of the ore management system, a belt sampling system has been developed by the author, which is used to predict monthly gold grade and its error for underground/belt/mill reconciliation and grade control. This paper presents the step-by-step development of the belt samplingstrategy and sample preparation protocol at Target, an underground gold mine in South Africa. The belt sampling system at Target consists of an underground belt transporting run-of-mine material into an underground transfer point, a weightometer, a two stage crushing system, a tube splitter and a catchment device. The design allows run-of-mine ore on the belt to be sampled automatically by a go-belt sampler. GyÆs sampling theory of particulate materials forms the basicframework of the belt sampling strategy. The theory is used to quantify the optimum sample mass of broken material to be taken from the belt and to predict its reliability. It is also employed to determine the Fundamental Sampling Error (FSE), time interval between samples and particle size requirements of the final underground belt sample. Further, GyÆs sampling theory provides the means of analysing the crushing processes, splitting, segregation error, analytical variance, and the best sample preparation protocol. Although the belt sampling strategy developed in this study was forWitwaterstrand gold ore, the process is entirely general and may be very successfully used in any underground or surface mine.

Jan 1, 1999