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By Thomas M. Lynberg

WIDCO is a surface coal mine located near Centralia, Washington. The WIDCO preparation plant processes over 7 million tons of run- of-mine coal each year with a product yield averaging 72%. In the jig type preparation plant the fine refuse amounts to approximately 130 dry tons per hour of 28mesh by 0. This fine refuse material is thickened in a 160ft. diameter static thickener with the use of lime as a coagulant and organic polymer as a flocculant. Once thickened the fine refuse, which is predominately bentonitic clays, has been dewatered and disposed of using several different methods. These methods will be discussed and include vacuum disc filters, ponds, solid bowl centrifuges, belt filter presses and experiments with electrokinetic dewatering.

Jan 1, 1981

By Edwin H. Bentzen

Talc, as a mineral, is rather widespread, but as an ore sultable for mining, it is rather limited. Materials sold as "talc" range from the impeccable white material from Italy to a gray-green-bluish material from Virginia. Some uses of the material called "talc" seem to be determined by the color of the material, some by the chemistry of the material, and some by the particle size of the ground material. But, there seems to be some overlapping of criteria used to judge the acceptability of a raw material. So then, any producer of talc material that is not a consumer of this raw material is faced with the age-old problems: "what do I call the stuff, and to whom should I try to sell it?" The answer to the first part is easy: if you want a high price, call it "talc"; if you want a low price, call it "soapstone". This may seem like a very simplified answer, but it is apparent that some of the products sold as "talc" have more than a minor amount of impurities in them; whereas, if they were called "soapstone", these same products would probably get a lower price.

Jan 1, 1973

By Ginger L. Hustrulid

Conveyor belts are a critical component in tunneling projects. This paper reviews current design considerations for conveyor belts. Rubber compounding differences to meet local fire resistance regulations or certain cover characteristics such as higher abrasion resistance or low carbon footprint rubbers for applications are reviewed. Evaluation of fabric belts, steel cable belts and the benefits of each carcass design for a particular use is also examined to help with proper carcass selection to decrease downtime from unexpected failures. Finally, this paper takes a look at some of the differences when working in metric versus imperial units.

Dec 1, 2022

By Mark C. Holton

The mining industry has recently been. - experiencing a difficult period. Escalating costs, lower grades and deeper level mining, are a few of .the reasons' why interactive graphics or CADD (computer aided design and draughting) systems are increasingly being used. CADD systems which support powerful and flexible mining applications have great potential for making all forms of mining more efficient and effective. There are many application programs which address almost every aspect of mining. Most of these programs originated to satisfy a particular need. Graphics and other features were added until they, reached a point where they were commercially viable as a mining package. Because of their evolution these packages, lack many CADD-type features. Today there are powerful personal computers (PC's) and engineering workstations running the best CADD systems available. These systems, support hundreds of applications in almost every discipline. Mining was until recently not well supported by interactive graphics vendors because of the highly variable nature of mining and the lack of common standards. Users of CADD systems have experienced the benefits of CADD and come to expect similar features from graphic mining packages. Several developers of mining packagers have either attempted to include some CADD features or make their packages compatible with one or other CADD system. Mining can benefit greatly From a combination of interactive graphics (or CADD) and the right mining application software.

Jan 1, 1989

By J. Sidhom, W. Fourie

"As the mining industry continues to face difficult challenges the need to persistently focus on productivity and utilization of labor and equipment costs will intensify. With these challenges in mind, Komatsu is helping to bring mining performance and analytics to the next level.By evaluating underground haulage, a significant component of the room and pillar mining value stream, variables have been identified and sensitivities have been performed to show opportunities to balance and streamline throughput. As a result of applying operational excellence tools to the mining environment, Komatsu is seeking to optimize mining performances by limiting waste, simplifying the process, increasing productivity and machine utilization, as well as removing workers from harm’s way.These days it’s not enough to work harder; mines have to work smarter. Improving efficiency, reducing costs, increasing safety: these are no longer nice to haves, they are must haves.Starting with the best products and the right people is a first step, but then what? How do mines take their operations from average to being a top performer? By using operational excellence principles aimed at eliminating waste, simplifying processes, automating where possible and removing people from harm’s way.The fundamentals of operational excellence (OpEx) are based upon the process of define, measure, analyze, improve and control (DMAIC). DMAIC is an improvement cycle that helps with, for example, haulage optimization by: defining the issues and problems in the process as well as the areas of improvement; measuring and collecting mining operational data by time study and equipment monitoring system; analyzing through sensitivities and production modelling to determine root causes and then improving the performance and controlling the operation.Komatsu uses OpEx or lean principles inside its organization to drive efficiency, but it also helps its customers employ them to achieve new levels of productivity and safety.These same principles can be applied in most situations to streamline processes, improve operations and deliver value."

Jan 12, 2017

By William Mayrsohn

INTRODUCTION The net smelter return (NSR) calculations made on various smelter-refiner alternatives, is usually done by taking the gross metal value less metal deductions, smelter-refiner charges and transportation-insurance costs. An important further step in the calculations is the financial charges imputed by refining time, transportation delays, to the time gold is returned (if tolled) or paid for if bought by the refiner. Metal that is priced in advance of payment also requires a forward premium that the mine may or may not be getting. This is a hidden cost that is often omitted from the calculations. Segmentation of each of the above costs are vital to see where improvements can be made through negotiations, better choice of metal pricing or transportation alternatives. BASIC NSR CALCULATIONS SMELTER-REFINER CHARGES Payable Metals - Treatment Refining Charges: Since these can vary from one smelter to another, the effect of a $25 per ounce price increase/decrease should be calculated and kept in mind. This effect is compared to differences in refining/treatment charge and a total smelter/refiner cost on a cost per ounce of dore, gold, or a dry ton of concentrate. Transportation - Insurance: Research has to be done on transportation alternatives perhaps with some assistance from the smelters, railroads or trucking companies. For dore, the U.S. postal service is viable and inexpensive. For railroads, deal with the regional office ie., B&N El Paso, if production warrants regular bulk shipments. Spot rates tend to be higher. A small mine producing concentrates usually goes to the nearest smelter due to extremely high transportation costs. Here is where a refiner can help. Insurance-Quotes for rates on dore/ concentrates are easily obtainable, but the mine has to shop for the best rates. Your insurance broker is the best source of this information. Differences between Mine and Smelter/Refiners Metal losses can be caused by the following: - Concentrate dry weight differences caused by moisture determination or faulty scales (often at the mine). - Sample bias by poor preparation practices on either side ie., grinding of the sample removing gold; or a poorly mixed concentrate. Dore bullion has no such difficulties.

Jan 1, 1987

By M. R. Yalamanchili, J. D. Miller

Discussion by M.R. Yalamanchili and J.D. Miller The authors, M. S. Celik et al., should be recognized for their efforts to describe the flotation behavior of boron minerals. In the case of borax and other soluble salt minerals, analysis of the flotation chemistry has been difficult because of the high ionic strengths associated with these soluble salt systems. However, considerable progress has been made in this area, and recently a surface charge/collector colloid adsorption model was proposed by Miller and his coworkers to explain the collector adsorption phenomena observed in soluble salt flotation systems (Milleret al, 1992; Yalamanchili et al., 1993; Miller and Yalamanchili, 1994; Yalamanchili and Miller, 1994a: Yalamanchili and Miller, 1994b). In this work, the sign of the surface charge of alkali halides in their saturated brines was established on the basis of nonequilibrium electrophoretic mobility measurements by laser-Doppler electrophoresis (Miller et al., 1992). Generally, these results are what would be expected from the simplified lattice-ionhydration theory. This electrokinetic information coupled with the stability and prevalence of collector colloids in such soluble salt flotation systems indicates that the selective flotation of alkali halides is due to the adsorption of oppositely charged collector colloids by heterocoagulation. Experimental flotation/bubble attachment results for 21 different alkali halides (Yalamanchili et al., 1993; Yalamanchili and Miller, I994b) confirmed that the flotation response of soluble salt minerals with weak electrolyte collectors can best be explained by the adsorption of oppositely charged collector colloids rather than by the adsorption collector ions and/or neutral molecular dipoles as originally suggested by many researchers (Fuerstenau and Fuerstenau, 1957; Schubert, 1967; Roman et al., 1968). In addition, the flotation of certain alkali oxyanions (Pizarro et al., 1993) and double salts such as schoenite and kainite can be explained by the same collector colloid adsorption mechanism (Miller and Yalamanchili, 1994). The borax flotation results reported by Celik et al. need to be examined in terms of the above mentioned surface charge/ collector colloid adsorption model. Unfortunately, the authors seem to be unaware of this recent work that nicely describes soluble salt flotation with weak electrolyte type collectors such as amines and carboxylates. In view of our past work, the flotation characteristics of borax were of particular interest, and, in this regard, the results of dodecyl amine flotation of borax reported by Celik et al. have been examined in further detail in the light of experimental results from our laboratory. In our research, a vacuum flotation technique was used to study the flotation response of borax (Na2B407.10H20), which has a solubility of 39 g/L at 25 °C) with dodecyl amine hydrochloride as collector. These chemicals were purchased from Eastman Kodak and used as received. Saturated solutions of borax at desired pH values were prepared by continuously stirring the salt solutions over a period of about 10 hrs. It should be mentioned that the conditioning time to achieve equilibrium is an important variable and can significantly change the flotation response of some soluble salts (Yalamanchili et al., 1993). Collector was added to the saturated borax solutions containing about one gram of 100x 150 mesh borax particles, and conditioning was done for about 20 minutes prior to flotation. The borax flotation recoveries from saturated brine are presented in Fig. 1 as a function of collector addition at the natural pH of 9.3, as reported both by Celik et al. and as measured in our laboratory. In addition, the region of precipitation for the dodecyl amine hydroborate is included in Fig. 1. It can be seen in Fig. 1 that the flotation response curves are separated by about one order of magnitude in R12NH3CI collector addition. The flotation results of Celik et al. show that the maximum borax recoveries can be obtained below the solubility limit of the dodecyl amine hydroborate collector. However, in our experiments borax flotation seems to occur only after the precipitation of the dodecyl amine hydroborate collector as might be expected from the collector colloid adsorption model (Yalamanchili et al., 1993) if borax were negatively charged. Further analysis by nonequilibrium and equilibrium electrophoretic mobility measurements for borax indicates that borax is negatively charged at the natural pH of 9.3, as discussed below. The reliability of the nonequilibrium electrophoretic measurements has been demonstrated previously for alkali halides and alkali oxyanions (Miller et al., 1992; Miller and Yalamanchili, 1994). The equilibrium and nonequlibrium electrophoretic measurements for borax were found to be consistent and are presented in Table 1. These results provide clear evidence that borax carries a negative surface charge in its saturated brine (pH 9.3), and the sign of the surface charge of borax reverses and becomes positive if the pH is reduced to 8.6. The equilibrium between borax and its saturated brine can be described by the following reaction: [2Na2B407.1OH2O-4Na++B407=+HB4O7 +OH+19H20] It appears that the oxyanions of the borax lattice provide

Jan 1, 1995

By Xuehui Zhang, Yun Bai, Qiaosong Li, Huiming Wu

"Construction activities account for a large share of the global Greenhouse Gas emission. In the past 10 years, project decision-makers and researchers have been paying more attention to the carbon emission of tunnel projects. In this paper we study the carbon emission calculation in shield tunneling. The objective of this paper is to: (1) analyze the complex variables which affect the total emission of shield tunneling; (2) develop and illustrate a new data-mining-based method to estimate the carbon emission in the construction phase; (3) assess the emission prediction reliability of a data-mining-based method—the Randomforst model, with R programming language. This study is based on a large-diameter shield tunnel built in Shanghai, China, and shows that a reliable predictive performance can be achieved with this new data-mining-based method. INTRODUCTION Climate change caused by the Greenhouse Gas (GHG) emission has been a hot topic in recent 20 years. Both governments and non-government-organizations are trying its best to control the climate change. Since the 1990s, the general consensus is that carbon emission reduction and carbon sinking (the work of capturing the emitted carbon) are two ways of mitigating the global warming effect, with the former being more exercisable. The challenge posed by global warming also motivates the project decision-makers to take measures to reduce the GHG emission. The 5th Assessment & Report on Climate Change (published by IPCC, the Intergovernmental Panel on Climate Change) suggests that building industry contributes to 5% of the total direct emission. The building industry has shown more awareness of the impact of GHG emissions with construction activities. Shield tunnels act as an important component of the infrastructure system, and have been the dominant way of utilizing the underground space, as well as a competitive alternative to passageway underneath rivers. To study the environmental effects of shield tunneling, there is a need to quantify the carbon emission of shield tunnel construction."

Jan 1, 2016

By F. Taylor Ostrander

Some countries are infinitely poorer than others in mineral resources-despite the perfect equality of their political leaders ambitions. Compare the mineral poverty of Kenya and Tanganyika with the riches of Katanga Province and Northern Rhodesia. Compare Paraguay with Chile, There never has been any equality in the distribution of nature's wealth. Minerals cannot play any role at all in economic development where they don't exist, and there are bound to be differential rates of economic development where there are basic differences in the wealth of mineral resources available. Africa is my principal area of interest and I know that there is an unfortunate but widespread misconception about Africa's "vast mineral resources, "its "untapped mineral wealth." Why is it untapped? Why is it undeveloped?

Jan 1, 1963

By James R. Boulton

Fire detection using Carbon Monoxide sensors is based on the assumption that a rise in the level of Carbon Monoxide in the atmosphere over a fixed, predetermined ambient level is indicative of a fire. The method is simple, reliable, and effective in those mines where the only source of CO is from undesired combustion. Ambience for this purpose is defined as that level of the gas that is present on a day to day basis whose source is not a fire. In a diesel powered mine the level of CO can and does vary so widely from hour to hour and minute to minute that the selection of a predetermined, fixed level represents a compromise between sensitivity and reliability. The compromise is a best of both and worst of both situations and the computer system often resembles the little boy who cried wolf instead of a state of the art early fire monitoring and detection system. Cyprus Coal personnel have developed method of determining the ambient level of CO in the atmosphere on a real time basis and using that dynamic ambient level to determine whether or not a fire exists in the mine. The method has been given the name of Wave Trend Crossing.

Jan 1, 1991

By P. Soupios

Seismic geophysical methods have long been used by geologists and geophysicists to delineate subsurface features. These techniques work because different types and strengths of soil and rock transmit energy at different velocities. The Crosshole-Downhole tests (CH-DH) and seismic refraction survey (RS) are among the most used methods in engineering applications to obtain the elastic properties of subsurface layers. As a result, seismic methods have evolved into a cost-effective tool for rapidly determining depth to bedrock in engineering and construction projects. The seismic methods are best suited to sediment thickness analysis, bedrock quality determination and detection of the presence of weaknesses in the bedrock before the erection of any civil engineering structures such as bridges, tunnels, dams and portals. Seismic methods are also useful in estimating the rippability of bedrock ahead of construction. These methods are particularly useful for large-scale projects that require a significant number of drill holes, resulting in a substantial investment of time and costs for drilling. The CH-DH and RS methods are typically comparable in total cost to drilling, but provide significantly more information in 2-D and 3-D and therefore reduce the likelihood of conceptually oversimplifying the subsurface conditions. The above mentioned methodologies were considered to be the most appropriate geophysical methods for investigating the shallow structure and the dynamic soil properties of the area where the Ilarionas Dam is scheduled to be constructed. The main target of this work was to prove the potential of geophysical methods in providing accurate information to the civil engineer and to obtain information on the dynamic soil and rock properties for earthquake design analyses for the dam construction. Specifically, nine refraction seismic profiles and three cross-hole-downhole seismic tests were implemented to determine the subsurface conditions of the study area. The tests determined the shear and compression wave velocity profiles versus depth and other crucial parameters such as Young and Rigidity modules. Furthermore, they allowed the detailed 2-D mapping (along several profiles of the study area) of the subsurface variation of the soil and rock dynamic moduli.

Jan 1, 2006

By Gary L. Simmons

Many large (refractory) sulfide gold resources exist in Nevada and other parts of the world that are not amenable to conventional flotation concentration using air as the flotation gas medium. Over the past five years Santa Fe Pacific Gold Corporation (SFPG) has investigated flotation process options to economically treat refractory ores and resources of this type at its Lone Tree and Twin Creeks mines. Conventional flotation technology applied to the original high-grade gold resources at Lone Tree and Twin Creeks was initially unsuccessful. Review and analysis of auriferous (gold-bearing) iron sulfide mineralogical characteristics and flotation ..:hemistry provided a fundamental understanding that led to the development of a new flotation process that SFPG refers to as N2 TEC. This paper discusses the development of this technology and compares N TEC results with conventional flotation practice.

Jan 1, 1997

By Kadri Dagdelen, Lee J. Zamalloa

Truck-shovel dispatch systems based on linear or nonlinear programming algorithms have been in operation since the mid-1980s, with different levels of success depending on the correct arrangement of operational resources and the complexity of the mine. These systems are known for shortcomings related to the logic behind the decision-making of the operational objectives. This makes it necessary to have a human agent (dispatcher) to guide the system when the operational parameters change, creating the possibility of suboptimal decisions due to the human factor. To address this issue, the present work discusses the implementation of a methodology based on artificial intelligence (AI) techniques to assist in the decision-making of the best optimization goals arrangement when operating a fleet management system. The focus of the analysis is on the evaluation of variable goal weights in a nonpreemptive, multigoal optimization model for multiple uncertain scenarios based on regions of optimal feasibility.

Apr 1, 2025

By R. J. Pindred

Discussion by R.J. Pindred In his paper, Davis presents an overview of risk. He also introduces the Capital Asset Processing Model (CAPM) as a foundation for selecting the appropriate discount rate for a mining project. While applying portfolio theory is more defensible than the ad hoc adjustment of discount rates, the CAPM is not a panacea. CAPM shortcomings [The CAPM, as Davis stated, is expressed in the equation: ri=rf+pi4) where ri is the project discount rate rf is the risk free interest rate (3i is the project beta, and 0 is the market risk premium (rm - rf)] Application of the CAPM is more difficult than Davis indicates. Valuation is prospective, while the CAPM parameters are historical. Beta is determined from a regression analysis of historical data, while the beta needed for valuation is the expected beta. Betas are known to be unstable and the regressions that generate them often have low explanatory power. The difficulty of estimating a "project" beta must also be considered. Thus, the beta that is used in the CAPM will be based on the analyst's judgment. Like Cavender's discount rate, this judgment can lead to different project NPVs. Subjectivity in valuation cannot be avoided by a mechanical application of the CAPM. The risk-free rate, which Davis identifies as a short-term real rate of 4%, is also subject to scrutiny. A mining project is not a short-term investment and no single risk-free rate is appropriate for all of the cash flows. The hypothetical mine discussed in Cavender's paper is a six-year project. One might argue for the application of a risk-free rate from the Treasury yield curve at the duration of the project (in a bond-duration sense). This, too, is inappropriate. The risk-free rate should be matched to the timing of the cash flow. These rates can be determined by calculating the implied forward rates from the yield curve using a procedure known as "bootstrapping." It is likely that each of the project's cash flows would be discounted at a different rate. Commodity prices Davis criticizes the "ad hoc adjustment to the discount rate." Yet, in his discussion of the value of stochastic simulation, he suggests that the gold price be modeled as a "random walk, with or without a trend." This is essentially an arbitrary modeling of price risk. Consider that a liquid market in gold futures exists. The futures' price curve, which is closely related to the market's estimate of future spot gold prices, should be used to provide inputs to the model. This is especially true of a relatively short six-year project. Alternatively, as Davis correctly points out, a risk-averse investor can sell the commodity short to hedge price risk. Is it any more correct, in the portfolio sense, to account for price risk at all ?? References Cavender, B., 1992, "Determination of the optimum lifetime of a mining project using discounted cash flow and option pricing techniques," Mining Engineering, Vol. 44, No. 10, pp.1262-1268 Fabozzi, F.J., 1993, Bond Markets, Analysis and Strategies, Second Edition, Prentice Hall, Inc. Higgins, R.C., 1992, Analysis for Financial Management, Third Edition, Richard D. Irwin, Inc. Solnik, B., 1991, International Investments, Second Edition, Addison Wesley Reply by G.A. Davis Pindred discusses two issues related to my paper, the shortcomings of the Capital Asset Pricing Model (CAPM) and which commodity price values to use in the valuation exercise. Even though these topics are not directly related to the use or misuse of Monte Carlo simulation, they are important points to take into consideration in valuation exercises. Since I do not appear to have addressed these issues satisfactorily in my original paper, I will comment on each here. Pindred agrees with me that applying portfolio theory, and specifically the CAPM, to the selection of project discount rates is more defensible than ad hoc methods. But he then points out that the application of the CAPM to project valuation is more difficult that I indicate. It is true that the CAPM is a difficult tool for project valuation in general,. But the application of the CAPM to mining projects is one of the easiest I can think of. The biggest problem with using the CAPM for project valuation is coming up with an expected project beta. I suggest a project beta for gold projects of 0.45. The "true" value might be 0.35, 0.55 or whatever. Pindred correctly notes that the selection of the appropriate project beta is based

Jan 1, 1996

By V. Rajagopal

Corrosion and abrasion properties of a series of chromium-containing cast iron balls with Cr contents ranging from 0 to 29% was evaluated and compared with austenitic stainless steel and mild steel balls. Marked ball wear tests were performed on artificial ore samples consisting of 95% quartzite with either 5% pyrrhotite or 5% chalcopyrite under a nitrogen or oxygen atmosphere. The electrochemical mechanism was investigated by correlating the corrosive wear with the corrosion currents obtained from potentiodynamic polarization curves under abrasion. An offset in their electrochemical activities was observed somewhere between 16 and 26% Cr. In fact, 26 and 29% Cr cast irons showed an excellent corrosion resistance approaching that of austenitic stainless steel. Flotation recoveries were estimated on a 95% quartzite + 5% pyrrhotite sample ground with various cast iron ball materials under an oxygen or nitrogen atmosphere. Electrochemical results are found to be in good agreement with corrosive wear obtained from marked ball wear test and with flotation results.

Jan 1, 1991

By James R. Evans

Forecasting demand is an art as well as a science, and much personal judgment is required. National forecasts made for sand and gravel, crushed stone, and/or aggregate may be misleading or unhelpful locally. This is because of significant variation in demand within different geographic and/or political areas in the United States, and/or the use of an inadequate data base and forecasting methodology. The best forecasts may be made for local or regional market areas, irrespective of geographic or political boundaries, provided a proper data base is available. The Bureau of Mines compiles detailed statistics on commodities sold or used in the construction industries and, therefore, is in an advantageous position to make national aggregate demand forecasts.

Jan 1, 1978

By Randal J. Barnes

A system, such as a mine production system or a mine ventilation system which includes the movement of commodities or some material between decision points may, in many instances, be effectively modelled as a network. Mining has often been characterized as primarily a materials handling function. To a great extent this is true, even though it is an over simplification of all the activities involved in a mining operation. Accepting the materials handling characterization of a mining operation permits the extension of the characterization to a flow process. That is, the ore flows from the mining face through the mining phase (excavation & loading, hauling, dumping) through the milling phase (crushing, grinding, recovery) through the smelter phase and finally to marketing. With this concept it is possible to depict a mining operation as a simple network. For example consider an operation consisting of two mines (A and B) with mills at each mine (MA and MB) with the possibility open to treat ore from mine b at mill NB, but it is not feasible to treat mine B ore at MA. The product of both mills is sold.

Jan 1, 1983

By Mark E. Gershon

A mixed-integer formulation of the mine scheduling problem is discussed and applied for the purpose of optimizing both the mine production sequencing and the mill blending and processing problems simultaneously. Previous attempts at solving these problems separately, although successful, fail to take into account the interrelationships between these problems. Project structure serves as the outline of this paper, which is directed towards a mining engineering audience. Generalized in its organization, this concept is useful for long, intermediate and short range scheduling. Actual applications are mentioned which show that the concept is also applicable to mining a variety of ores.

Jan 1, 1982

By G. Pan

Although geostatistical techniques have been widely accepted as the standard methods for reserve calculations in the mining industry, the production data of many mines frequently differ from geostatistical estimations based on exploration and development drilling. The discrepancies in recovered metal amounts, commonly in the range between 10% and 30%, are related to different factors. Major causes vary from mine to mine. A common cause, however, is the ignorance of important geological constraints in reserve modeling. Three major factors appear to be related to such an unfortunate fact: 1) modelers are over-confident on geostatistical techniques, 2) it is difficult to establish geological models, and 3) mine schedules are too tight to allow detailed geological modeling work. Defining mineralization envelopes has been a major effort in geological modeling. Past experiences have showed that geological modeling is much mo~ demanding than the choice of sophisticated kriging estimators. Since building envelopes for complex ore bodies can be extremely tedious and time-consuming, computerized approaches are badly needed for mine modelers. A comprehensive procedure reported here is referred to as probability-assigned constrained kriging (PACK), which includes a built-in method for defining 3-d mineralization envelopes. The modeling technique is fast and accurate for complex precious metal deposits. The technique is demonstrated on a gold deposit. The estimation results are compared with blast-hole based production panels, showing that the estimated tonnage is 2.2% larger than the actual production and the average grade is 2.6% lower.

Jan 1, 1994

What is your personal view and assessment of the overall health of the industry in the current global economy? The economic outlook remains soft for the near future and, although the global economy is showing signs of recovery, uncertainty has tempered the pace of recovery. In addition to uncertainty, we are still facing significant economic challenges in many parts of the world, including Europe and the United States. The rapid expansion of China?s economy has recently slowed, further contributing to the sense of uncertainty in the overall health of the global economy. This situation is both a blessing and a curse, depending on which sector of the mining industry we are considering. For example, coal, industrial minerals, aggregates, base metal and precious metals markets are impacted by different forces and drivers and will experience different outcomes within the same economic environment. Let me give a few concrete examples to illustrate this concept. The prevailing economic uncertainty that I have just described tends to drive investors toward safe havens. Gold has historically been viewed as a safe haven and as long as investors shy away from traditional investments, gold prices will remain high and gold mining companies will continue to expand and invest capital in their operations. The same sluggish economy that drives gold prices higher has the opposite effect on other segments of the minerals industry. A great example of this is industrial minerals and aggregates used in construction. The markets that consume these minerals have contracted significantly over the past five years. The outlook for this segment is poor, as the glut of available housing continues to inhibit demand for new construction and, thus, many industrial minerals. In addition to this, the federal government?s lack of political will to enact long-term legislation funding transportation and infrastructure projects continues to be a drag on the U.S. aggregates industry.

Jan 1, 2013