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By K. H. McDaniel, L. Griswold

The Waste Isolation Pilot Plant (WIPP) is adding a third fan to operate in parallel with, and supplement, its two existing main fans. An engineering analysis conducted in 1995 identified the need for improved system availability and efficiency. The WIPP, located near Carlsbad, New Mexico, is a U.S. Department of Energy (DOE) Carlsbad Area Office facility designed to permanently dispose of U.S. defense-generated transuranic waste in a deep bedded salt deposit. Engineers at the WIPP performed a feasibility analysis for either modifying, supplementing, or replacing its two main mine fans. Since the centrifugal fans were installed in 1988, multiple operational and performance concerns have been identified. A comprehensive engineering study was conducted (McDaniel, et al., 1997) to: identify and quantify operational concerns, evaluate possible alternatives, and recommend an optimum solution. The study indicated that adding a third single-duty centrifugal fan similar to the two existing fans, and equipping that fan with Inlet Van Controls (IVCs) was the best choice. This alternative provided the most desirable combination of operational readiness, and improving system performance. The fan installation project accommodates several operational and scheduling constraints. WIPP is scheduled to receive waste in May 1998. This milestone is proceeded by an operational readiness review. Fan installation could not be allowed to compromise the WIPP's ability to declare facility readiness and had to minimize operational disruptions during the system tie-in. All engineering for the project is completed and physical modifications started in July 1997. The project was completed in 1998.

Jan 1, 1999

By G. Coombs, L. Meade, J. Welshimer

Industrial Minerals commodity profiles are continued from May's Annual Review issue. Diatomite G. Coombs, Manville Sales Corp. Growth in US diatomite production continued to lag in 1986. The US Bureau of Mines estimated that 580 kt (640,000 st) were produced last year. This is a 1%0 growth over 1985. The cumulative growth from the 1982 low point is 4.4%. Present production, though, is still only 90% of the high tonnage of 1979. The industry will see increased competitive activity with the start-ups of two new mines and production facilities in California and Oregon. US production has come primarily from Lompoc, CA, Bassalt, Clark Station, and Lovelock, NV, and Quincy, WA. New production, probably with capacities of 45 kt/a (50,000 stpy) each, have started near Burney, CA, and Vale, OR. Eagle Picher's new, full-line filter aid and filler plant at Celatom, Vale, OR, was dedicated in August. The plant uses diatomite from the Celatom mining district in Juntura, OR. Grefco's new filter aid and filler plant near Burney, CA, was ready in July. It produced flux calcined products through a single kiln and can handle both bag and bulk shipments. The operations are in Shata County with the plant and mine at the same site. Manville Specialties Group is moving its Filtration and Minerals Division headquarters and research staffs to Lompoc, CA. The move is intended to strengthen response and performance by locating research, marketing, and production close together. Diatomite is processed in three methods: natural, calcined, and flux calcined. The natural is dried to remove water and is particle size classified. Calcined or straight calcined products have been sintered to modify particle size or permeability. Flux calcination, or flux sintering, has a stronger influence on permeability and also benefits color. The unique structure of diatomite is used in a range of particle sizes from fine paint fillers, to coarser filter aids, to granular aggregates. Dimension stone L. Meade, Geomapping Associates Ltd. 1986 was another good year for dimension stone production. The trend toward using marble, granite, limestone, sandstone, and slate has created an increasing demand. According to US Bureau of Mines 1986 estimates, 1.1 Mt (1.2 million st) of dimension stone, with a value of $173 million, was produced by 200 companies. This is an increase from 1985, where 220 companies produced 1 Mt (1.12 million st) valued at $172 million. The increased production volume and decreased unit value is due to the competition from imports. The net import reliance in 1986 was 68% compared to 62% in 1985. The value of imports was $374 million in 1986 versus $295 million the year before. In an effort to maintain their market share, domestic finishers, particularly in the granite industry, continued to upgrade plants and machinery during 1986. In addition, offshore dollars have financed a number of fabricating facilities in North America that will finish imported rough stock. It is hoped that this increased domestic production capability will capitalize on a devalued US dollar. The trend has been for growth in stone usage and market. This trend is continuing with increased public awareness and desire for natural stone in buildings. The area of greatest market growth is expected to be in residential and interior decorative stone usage. Use of sophisticated, automated equipment has made the cost more affordable. Now lobbies, foyers, and specialty rooms are being clad in stone. Dolomite J. Welshimer, National Lime & Stone Co. About three-quarters of dolomite production is used as construction aggregates and 10% to 20% is sold or used as an industrial mineral. Total limestone and dolomite consumed for chemical and metallurgical purposes is about 136 Mt/a (150 million stpy). Sales of industrial dolomitic products were somewhat stronger in 1986 than levels recorded in the early 1980s. Some of the sales' strength, however, can be attributed to reductions in the number of active mining and processing operations. The industry will probably undergo further consolidation by the end of this decade. This will be due primarily to the continued softening in demand by the steel industry. Dolomitic limestone deposits being mined for raw materials for the steel, glass, and refractory in¬dustries are generally 54% calcium carbonate and 45% magnesium carbonate by weight. Impurities composed of silicon, aluminum, iron, sulfur, and phosphorous, represent less than 1%. The heaviest concentration of high purity, surface mineable dolomite in the US is in northwestern Ohio. Crushed and sized dolomitic limestone is a basic raw material for the iron and steel industry. It is also used as feed stone or lime kilns. Soft-burned lime is a popular raw material for BOF steel production. It is also used extensively in insulating glass fiber manufacturing. A related material, hydrated

Jan 6, 1987

By Magnus Ruin

The dry deep mixing method for stabilization of soft soil has been used in the Scandinavian countries for 25 years. The typical application has been stabilization of soft inorganic clay. Today the method is used more frequently in organic soil with good results. The Limix System, introduced in the USA by Hercules Grundläggning AB and TREVIICOS Corporation, is a cost-effective dry deep mixing method used to stabilize most types of soft soil. This paper presents the general principles of stabilizing organic soil with the dry mix method and two case histories of soil stabilization projects in organic soil. Between October 2000 and June 2001 the Limix System was used in England to stabilize soft organic alluvium at the Channel Tunnel Rail Link, Contract 440. During year 2000 the Limix System was used in soft organic soil in Holland near the Groene Hart Tunnel entrance to support trench excavations for slurry walls and concrete barrettes.

Jan 1, 2001

This evening I intend to explain the position of the gold mining industry in the light of post war trends and events.I propose initially to comment on gold production throughout the World and then proceed to the state of the industry in Australia, with an account of the efforts made within the industry to maintain levels of production. This will be followed hy a statement on assistance granted to the industry by Federal and State Governments.Annual World gold production is estimated at 51,000,060 fine ounces, made up as followsSouth Africa - 27,300,000 fine ouncesCanada 4,200,000 " "U.S.A. 1,500,000 " "Australia - 1,000,000 " " Others 5,000,000 " "----- 39,000,000 " "Estimated Russianproduction - 12,000,000 " "Total 51,000,000 " "The opening up of new highly payable mines during the post war years has contributed to the preponderence of production in South Africa.In 1962 some 24 new mines produced 73 per cent of South Africa's gold, and contributed almost 90 per cent to the industrial profits.At the same time, 20 old mines were struggling to main...

Jan 1, 1964

Work undertaken in the field of cut-off grade optimization has not advanced much beyond the work undertaken by Lane in 1988. His definitive work is based on the calculus of the Net Present Value criterion which is the most widely understood, consistent, and appropriate method by which sequential cash flows arising from the extraction of mineral reserves from an exhaustible resource can be represented. Although the mathematics is not complex Lane’s method is not a widely appreciated or applied approach to maximizing the value of a mining operation through selection and balancing of operational cut-off grades. Three stages in a mining operation namely, mining, processing and marketing were defined by Lane and the economics of each stage are identified and isolated to provide an optimum cut-off for each stage. Points of intersection along the present value curves for each stage of a mining operation are used to identify balancing cut-off grades at points where the capacity of the mining, processing and marketing stages is fully utilized and the Net Present Value of the operation is optimized. Data that simulate a small, deep-level Witwatersrand-type gold mine with an average grade of 6 g/t Au and a logrithmic variance of 1.2,are applied to the model to illustrate the benefits of representing cut-off grades in terms of present value curves for different segments of a mining operation. Keywords: Cut-off grade, Net Present Value, grade-tonnage curve, balancing cut-off grade, mining, processing, marketing.

Jan 1, 2003

By Neri Roux, Chris Budgell, Allan Cramm, Leo Cheung

"Anaconda Mining Inc. is investigating potential improvements and expansions to their operating plant located on the Baie Verte Peninsula in Newfoundland. An extensive batch and continuous bench scale testing program was launched to investigate the efficiency of cyanide destruction under different conditions in order to improve tailings handling. The primary objective of the cyanide destruction study was to apply new technologies to develop a novel cyanide destruction system.Effluent and slurry from Anaconda Mining Inc.’s Point Rousse Project was received at RPC where test work was conducted. Various sodium metabisulfite (MBS) dosages were evaluated and the use of utilizing ozone and ultra violet (UV) light to oxidize cyanide was investigated. All the data was evaluated and mass balances were compiled to develop several flowsheets. Overall encouraging results were found using a combination of ozone and MBS.IntroductionAnaconda Mining Inc.’s Point Rousse project includes an operating gold processing plant located on the Baie Verte Peninsula in Newfoundland which is in the process of improving and expanding. This plant comprises of milling and flotation followed by cyanide leaching in order to extract the gold. The residue from cyanide leaching is filtered by drum filters prior to being clarified for the Merrill-Crowe process. Once the gold has been recovered by the Merrill-Crowe process the effluent is filtered by filter presses and the resulting filtrate as well as the solids from the drum filters are detoxified prior to being pumped to the tailings pond along with the flotation tailings.The entire process is very dependent upon the efficient destruction of cyanide in the effluents and successful tailings handling. Substantial amounts of effluent are delivered to tailings ponds after gold extraction which could create environmental problems if the regulations are not met. Environmental regulations stipulate that final effluents contain no more than 1 mg/L Total CN.The detoxified tailings of the Point Rousse project are produced by the INCO SO2-Air circuit depicted in Figure 1. These detox tailings contain 10 mg/L Total CN at that point of the circuit and this was selected as the target to be matched while reducing overall MBS consumption rates from 3.2 g/L per minute. Prior to detoxification, the filter press tailings contain 520 mg/L Total CN while the drum tailings contain 29 mg/L Total CN."

Jan 1, 2017

By Tracy Brettmann, Will Bohlen

An innovative retaining wall design consisting of tangent drilled shafts with supplementary seal piles was used to limit continuing bank erosion along the Brazos River in Southeast Texas. The riverbank erosion had progressed to where it was threatening the stability of both the bridge abutment and corresponding approach embankment of the heavily travelled Highway 99 bridge at this location. A tangent pile design was selected because it was both much faster to install and more cost effective than a secant pile system. The design included both 5.5-ft and 10-ft diameter shafts with depths up to 130-ft and comprised both anchored and cantilevered sections. Supplementary seal shafts were also installed between the structural tangent drilled shafts to help plug any gaps between the tangent shafts. The plumbness and diameter of the shafts were tested using a sonic caliper to make sure the shafts were installed within the specified tolerance. The initial design had to be revised when a record flood from Hurricane Harvey impacted the site during construction. Introduction The Fort Bend Grand Parkway Toll Road Authority (Owner) needed to protect the north bridge abutment with a retaining wall system due to rapidly eroding conditions of the Brazos River banks within the 300- feet-right-of-way of the State Highway 99 Jodie Stavinoha Bridge. The extent of the local scour and erosion along the north bank of the Brazos River has caused concern for the structural integrity of the bridge. The magnitude of the erosion along the north bank at the location of the bridge has been measured at about 120 feet over three recent hydrologic flood events locally referred to as Memorial Day 2015, Memorial Day 2016, and Tax Day 2016. During construction, a new record flood level occurred due to Hurricane Harvey in August of 2017 that resulted in a portion of the retaining wall needing to be redesigned due to even more erosion occurring. The Brazos River is an actively eroding and meandering alluvial river plain that naturally meanders and migrates over time. The processes of bank erosion and meander migration were ongoing before the bridge was constructed and will continue in the future. These recurring major flood events, however, rapidly increased the rate of erosion in just a few years. Background. Due to the need to protect the bridge as soon as possible, the Owner selected a project team consisting of the designer, general contractor and specialty deep foundation contractor prior to final design to work together in developing a cost-effective design that could be implemented rapidly. The project team initially considered both a secant pile and tangent pile retaining wall system using drilled shafts. After reviewing various alternative designs, a tangent pile wall with seal piles was selected based on both cost effectiveness and speed of installation. The tangent pile with seal pile option was approximately 20 percent lower in cost and 50 percent faster to install.

Jan 1, 2018

By Frank R. Field, Randolph E. Kirchain, Elisa Alonso

"There are a number of environmental incentives for increasing recycling, including the reduction of waste, energy and resource use. Recycling can also be advantageous for manufacturing firms in both the short and long term. Secondary material can substitute for primary material, potentially dampening primary material price increases and reducing the pressure for greater primary extraction. This paper examines the potential for and dynamics of recycling for the case of platinum using a dynamic, behavioral simulation model of the primary and secondary markets. Since the secondary supply of platinum depends on a supply chain separate from primary extraction, recycling can diversify the risks of primary supply instabilities. Over time, recycling can cut primary consumption, reduce overall costs to firms, and possibly reduce the impact of price fluctuations upon firms.IntroductionThe benefits of recycling, from the perspective of the environment, are many, and the environmental benefits of increased recycling are considered a step towards increased sustainability [1, 2]. Life cycle assessments indicate that obtaining materials from secondary sources generally requires less energy and has fewer environmental impacts than extraction and refining of primary materials [3]. Analyses of materials flows show that, in addition to landfill volume reduction, recycling reduces primary material consumption, affecting long term materials scarcity [4, 5].The benefits of recycling are not limited to the environmental. Firms can benefit from the lower energy costs of recycling, especially that of metals whose primary extraction and refining are particularly energy-intensive (e.g., aluminum). The routine participation by firms in secondary materials markets (e.g., www.recycle.net) shows that this advantage has not gone unnoticed.Recycling can also benefit firms whose costs can be significantly affected by changes in material prices resulting from material shortages and material scarcity, with potentially permanent effects upon firms [6-8]. This paper focuses on the impact of recycling in the face of platinum scarcity for supply chain downstream firms."

Jan 1, 2008

By W. F. Visser

The growing availability of information and data analysis capabilities of recent years provides new opportunities for improving the performance of mining operations. By using real-time measurements and artificial intelligence, it is possible to respond faster to changing conditions, while accurate and timely information permits rapid evaluation of changes and fast business improvement decisions. This article presents a blueprint for alignment of systems, organizational design, and management practices to leverage these developments in performance-driven operations management in mining and mineral processing. The first component of the blueprint is a performance framework with a system of key performance indicators for production control that can be used across organizational levels. This system places improvement at the core of management activities, giving greater importance to improvement skills at lower organizational levels, so companies can leverage available information for improving operational control. Secondly, the blueprint defines an organizational structure that strengthens performance improvement with technological and change management capabilities. Finally, the blueprint proposes alignment of management practices, covering the optimization of short-interval controls, the application of an improvement project portfolio management system that determines the ownership of improvement projects, and the coordination of controls across the organization. This combination of systems, organizational design, and management alignment supports rapid decision-making at the right organizational level. Introduction of the presented blueprint for operations management enables mines to leverage the developments in information and analysis capabilities to improve the performance of operations.

By C. Slotta, F. Charlier, P. Blomen

"Within the energy concept of the German government, the operating time of nuclear power plants was initially extended from about 8 to 14 years. It is planned, however, that every power plant will gradually be decommissioned until 2025 and that simultaneously the amount of renewable energies will successively be expanded. According to the political state, nuclear energy is a discontinued model. Looking at the global energy market, though, an obviously opposed development can be observed. At the moment, 443 nuclear power plants are running worldwide and further 62 facilities are being built. These about 500 nuclear power stations have to be supplied with nuclear fuel right now and in the future. The present paper will describe the worldwide use of nuclear energy, the extraction of the nuclear fuel uranium and in detail the available and predicted resources of uranium. The conclusion of the paper is the statement that uranium as nuclear fuel is no scarce resource but sufficiently available."

Jan 1, 2011

By Jason Rrno

The emergence of Impact and Benefit Agreements (IBAs) in the Canadian mining sector has been read by many as a positive governance innovation. Negotiated directly between mineral resource developers and Aboriginal communities with limited government interference, IBAs serve to manage impacts associated with a mining project and deliver tangible benefits to local communities. Notwithstanding their increasing use and significance, limited systematic analysis has been undertaken to determine whether they are, in fact, working. This paper reports on the effectiveness of a number of IBAs negotiated in support of three northern Canadian diamond mines, drawing on evidence from time-series data, key informant interviews, and focus group meetings in Yellowknife and Dettah, NWT, and Kugluktuk, NU. While some deficiencies were apparent and perceptions of effectiveness varied somewhat by Aboriginal community, the IBAs were generally found to be meeting their objectives, especially with respect to the delivery of benefits. For Aboriginal communities affected by mineral development in the Canadian North, this represents a significant change to typical outcomes of the past. Moving forward, research on IBA effectiveness needs to adopt a longer timeframe and begin to gauge the degree to which IBAs are able to address long-standing concerns associated with hinterland resource extraction beyond their agreement-specific objectives.

May 1, 2010

By Graeme McWhirter

This paper discusses the Installation of a Vibwall for the Cardiff Bay Barrage Project Wales, UK, by Kvaerner Cementation Foundations. Only the second use of the technique in the UK the wall was successfully placed to a depth in excess of 20 metres, in unique and challenging conditions. The installation of the Vibwall was a technical success, but not a financial one. The use of the technique was at its "limits" and this paper recommends some of the controls essential in the carrying out of such work in the future.

Jan 1, 2000

By A. T. Iannacchione

Underground limestone mines typically use the room-and-pillar method of mining in the generally flat-lying limestone formations. In some cases the dip may exceed 5° which can result in unique roof instability problems. Stability may be further exacerbated by the presence of horizontal tectonic stresses. Field studies and numerical model analyses are combined to assess the affect of the dip in various stress conditions. The results showed that where the horizontal tectonic stresses are sufficient to cause intact rock failure, increasing dip results in increased failure potential. The effect of the dip is greater when the maximum horizontal stress is parallel to the dip. Two case studies are presented and evaluated against the findings of stress analysis results. The study showed that the empirical rules of orienting headings parallel to the maximum stress are generally applicable to dipping excavations, except when mining in the up-dip direction. The importance of accurately determining the orientation of the maximum horizontal stress is emphasized because the window of favorable orientations relative to the stress is small.

By Richard A. Forth

During the construction of the Island Line (ISL) in Hong Kong between 1982 and 1986 piled foundations of a building were encountered in a tunnel drive. As the tunnel alignment could not be changed work was temporarily suspended whilst grouting took place beneath the pile cap. The tips of the piles were then cut off. The normal precast concrete lining segments were replaced by the "stiffer" spheroidal graphite iron segments and tunnelling resumed. Settlement of the building was found to be under 10 mm due to the tunnel drive and no damage was reported to the building.

Jan 1, 2002

By Barend Botha, Trevor Davids

The presence of an extensive soft siltstone layer in the middle of the inter-burden sequence of rocks at Syferfontein Colliery in the Republic of South Africa prompted tests to determine the effect of different mid-column decks of inert material in the siltstone layer. The objective was to achieve significant cost savings in explosives use whilst not degrading dragline productivity. An important factor that had to be considered was that the initiation systems available in South Africa are not accurate enough to ensure simultaneous initiation of explosives decks in a blasthole. A number of inert materials were tested including ash, drill cuttings, river sand and crushed stone. It was found that the ash, drill cuttings and river sand did not effectively attenuate the shock wave and that the risks of sympathetic detonation or partial disruption of one or the other explosives deck in a blasthole was high. This became much worse when the inert material was saturated with water. Crushed rock was the most effective in attenuating the shock wave, but this material was very expensive to use because it had to be imported onto the mine.

Jan 1, 2000

By J. Madias, E. Benavidez, E. Brandaleze, L. Castella

Knowledge of the physical and chemical properties as well as the behaviour of the mould fluxes during melting, important in order to improve continuous casting operations. Lubrication and control of heat transfer in the mould are the more relevant functions of these materials. Values of physical properties like viscosity and surface tension at melting range temperatures are required, as much as the thermal behaviour under process conditions. The heat extraction from the liquid steel has an important effect in the final quality of products. Mould fluxes are constituted by different oxides, and may form glasses and crystal phases during cooling. The solidification rate and the chemical composition determine the proportion, type and crystalline morphology, which are responsible of the thermal transfer processes. In this paper, viscosity values are reported in the melting range temperatures calculated by means of the Riboud model and compared with fluidity results obtained by the inclined plane technique. Also the linear expansion of the mould fluxes at high temperatures was determined by dilatometry. The crystallization in two different fluxes was determined by DTA tests and correlated with the basicity index. Crystal phases were evaluated by scanning electronic microscopy on quenched samples at 1300°C. This information is relevant to increase the knowledge on the peritectic steel grades casting process in order to improve its quality. Keywords: mould fluxes, heat transfer, crystal phases, peritectic steels, thermal properties.

Jan 1, 2004

By Nan Hua

As a high production and high efficient mining method, top coal caving method is now widely used in China. However, as more extra-thick coal seams are mined, it becomes more and more difficult to make the top coal fully broken up, resulting in more and more top coals flowing into the gob, rather than onto the rear AFC at the working face as designed. This research is aimed to investigate the failure mechanisms of the extra-thick top coal caving mining method.

Jan 1, 2009

By F. D. Ford, Z. Dai, A. Byers

Manitoba Mining and Milling operations consist of three underground mines (Thompson T1, T3 and Birchtree), feeding the Thompson Mill. Three years ago, a collaborative effort involving Mines Exploration, Mines Project Development Group, Mill Technical Services and Vale Base Metals Technical Excellence Center was initiated to establish and verify the cause of high variability in concentrate quality and Ni recovery at the Thompson Mill. One outcome of this work was a program to systematically characterize the mineralogy and metallurgical performance of current and future orebodies feeding the mill. Mineralogy results show that high value enabling ores typically have a high pentlandite to pyrrhotite ratio and benign silicate mineralogy (mostly quartz and feldspar from sedimentary host rocks), while metallurgically challenging ores contain some combination of pyrite and/or hexagonal (non-magnetic) pyrrhotite and/or elevated quantities of talc (with associated carbonates) derived from altered ultramafic host rocks. The metallurgical performance of these two ore types has been simulated by an Excel particle flotation model, which calculates the relative floatability of particles based on the particle’s mineral composition and mineral locking determined from MLA images. The relationship between these mineral properties measured by MLA and metallurgical performance was established using 13 monthly composite samples from Thompson Mill. The model was then validated with results of laboratory flotation experiments on individual orebodies submitted for evaluation. The validated model can be used to predict plant metallurgical performance based on individual ore bodies feeding the mill. Individual orebody’s grade-recovery curves are assumed to be additive, and can be weighted in proportion to the mill feed to predict mill recovery over the same time period. The ore mixing can be done with a simple Excel spreadsheet and comes with a graphical output for easy visualization of the resulting grade-recovery curve.

Jan 1, 2015

By Tapio Leskinen

"l. IntroductionA reliable sampling system is the basis for an on-stream analyzer. This was realized in Outokumpu company when the development work of the Courier 300 On-Stream X-ray analysis system was started. Because Outokumpu Oy is a mining and mineral processing company, its engineers have been able to thoroughly test sampler prototypes in actual operating situations. The sampler development has been going for several years in close co-operation between company's concentrators, the Institute of Physics and the Instrument Division of Outokumpu Oy. The most active part of the work was done between 1969- 1972. Besides the reliable operation of a sampler special attention was paid to the representatively of the samples taken by the samplers. 2. The Courier 300 Sampling SystemThe sampling system comprises up to fourteen sampling circuits in one Courier analysis system. Each circuit consists of the following components:1. Primary sampler 2. Secondary sampler 3. Cleaner screen 4. Feeding tank5. Sample cell6. Timer-controlled sampler7. Pumps, sumps and pipesSecondary samplers, cleaner screen and feeding tanks are included in the secondary sct1npling system. The sample cells are located in the spectrometer cabinet of the analyzer."

Jan 1, 1976

The spatial distribution of copper grades at the Mansa Mina project is highly variable due to the presence of high grade copper/silver/arsenic breccia bodies. Copper grades within the breccia bodies tend to average about 4.5% copper while grades in the surrounding stockwork average about 1.0%. The breccia is known to occur in the vicinity of significant controlling structures, however, the outline and therefore the thickness of the bodies are far from regular. Due to the high grade of these bodies a significant proportion of the value of the project is derived from the breccia tonnages. The irregularity in the outlines/thickness translates into an uncertainty in the breccia tonnage and therefore in the value of the project. Acknowledging the economic importance of the breccia bodies and the risk associated with the breccia tonnage uncertainty, significant additional drilling has been proposed to both understand the spatial distribution of the breccias and reduce project risk. The costs associated with this additional drilling are not inconsequential; thus, a reasonable question is ‘what value is derived from this additional drilling’? To obtain an answer to this important question, a simulation approach is applied. First the deposit is simulated using the existing drilling and the uncertainty in the resource is defined. Next the proposed drilling program is simulated and the simulated data are added to the existing data. Using this expanded data set a second simulation of the deposit is created and once again the uncertainty in the resource is defined. Using this approach, the reduction in the uncertainty in the resource can be determined. To convert this reduction in uncertainty (or reduction in risk) in the stated resource into a dollar value, a method of defining the increase in the project rate of return necessary to account for risk is presented. Using the two different rates of return, the difference in project NPV and hence the value of additional drilling is determined.

Jan 1, 2003