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By Stephen Semeniuk

Discussion by Stephen Semeniuk Discussion As a valuator and SME member, I view Ross D. Lawrence's position as based on unproven and faulty assumptions made with regard to the pragmatic evidence presented in his paper. Moreover, his call for the inclusion of all mineral resources in discounted cash flow valuations is redundant, if not irrelevant, as there are procedures that already take all classes of mineralization into consideration for valuation purposes. In my experience as a valuator, I find that Canadian securities regulators are more than accommodating in allowing any valuations of mineral properties to be based on cash flow calculations. In other business areas, the same regulators usually reject discounted cash flow valuations of projects or businesses with no operating history. Instead, the regulators prefer valuations to be based on other transactions tested in the marketplace. Valuations based on actual market transactions are less subjective than discounted cash flow calculations and/or the capitalization of arbitrary, untested or undemonstrated earnings projections. In the mining and minerals sector, such projections may be made by persons not qualified to make such projections. In support of this statement, I direct readers to the article "Valuation of mineral properties which do not contain exploitable reserves" by Lionel C. Kilburn, which appeared in the August 1990 issue of the CIM Bulletin. To quote from the article: "Value of a mineral property depends basically upon metal prices, recoverable grades, mining and metallurgical practices, commodity supply and demand, and political-economic conditions, all of which vary with time. Five fields of expertise influence the value of a mineral property: •geological engineering, •commodity markets, •financial markets, •stock markets and •mineral property markets. The skills of geologists and engineers properly apply to the first field of expertise. Knowledge and consideration of the other four fields is important, but such advice is more properly sought from marketing experts, economists and stockbrokers." Securities regulators have created no hardship for valuators by excluding unsubstantiated resources in discounted cash flow valuations. In the field of engineering, best design practices apply. A margin of safety is built into the design criteria for any new equipment or structure that will exceed normally expected load levels and stresses, even though such considerations imply higher front end costs. In accounting, the comparable operating principle is conservatism. It explains why, for balancesheet presentation purposes, inventory is stated at cost or market, whichever is the lowest value. Similarly, when the engineering or geoscience-based valuator plays in the field of finance, the rules of accounting and applied economics apply. Regulators in their skepticism of income-based valuations are in tune with similar views already expressed in mining literature. To quote H. Van Tingley, in Mining Magazine, July 1996: "... the DCF method has inherent dangers when applied to undeveloped resources. Firstly, it presents an often-undeserved aura of accuracy. A DCF value is no more accurate than the least accurate of the assumptions incorporated into the calculation - and assumptions

Jan 1, 2003

By J. Richard Kyle

Salt domes, their cap rocks, and the adjacent sedimentary strata represent a major economic resource in the Gulf of Mexico basin. Gulf Coast salt diapirs formed in response to sediment loading of the "mother" Louann evaporite sequence of middle Jurassic age, an effect that is caused by the buoyant nature of the lower density salt. Halokinesis progresses from nonpenetrative deformation that creates broad "pillow" structures into discrete high-amplitude diapirs. Because of its buoyancy, the top of the salt diapir remains near the land surface or the seafloor during much of its history as the basin floor subsides. The salt within the Gulf Coast diapirs is deformed complexly and commonly shows subvertical banding that represents modified sedimentary layers with different contents of nonhalite components. The most abundant impurity is anhydrite, which occurs as individual millimeter-scale crystals or as deformed clasts that generally form about 5% of most salt stocks. Many mature salt diapirs are mantled by a "cap rock" that consists of a lower anhydrite zone and an upper calcite zone, commonly separated by a discontinuous gypsum-bearing zone. The anhydrite zone forms as accreted layers of anhydrite grains and clasts that are left after episodes of halite dissolution. The calcite zone is a product related to petroleum destruction accompanying bacterial reduction of aqueous sulfate. Calcite-cemented siliciclastic strata occur above or alongside diapirs. The mineral resources of the salt-dome setting are remarkably diverse. Major economic products of the salt-dome environment are salt and cap-rock-hosted native-sulfur deposits, as well as petroleum resources that occur on the dome flanks and in the cap rock. Native sulfur forms as a result of bacterial sulfate reduction accompanying petroleum destruction to form hydrogen sulfide, which is subsequently oxidized to elemental sulfur, major amounts of which have been produced by the Frasch process from Gulf Coast salt-dome cap rocks. Some cap rocks have produced limestone, gypsum, and anhydrite for a variety of construction uses. Although traditional industrial-mineral resource production from Gulf Coast salt domes is shrinking, some cap rocks host potentially commercial concentrations of celestite and barite, as well as the metals Zn, Pb, and Ag. Furthermore, caverns, excavated within the salt stocks, serve as major storage facilities for crude oil (including the Strategic Petroleum Reserve), liquefied petroleum gas, and natural gas. These resources are products of fundamental geologic processes that are integral to the evolution of the Gulf of Mexico basin. Whereas production of some industrial-mineral resources, such as elemental sulfur, has declined in recent years, ample reserves of salt will allow production to continue into the foreseeable future. Further, there is potential for other mineral-resource production from cap rocks under favorable economic circumstances. Expanded use of caverns, excavated in the salt masses for material storage and disposal, is likely to continue into the next century.

Jan 1, 1999

By William E. Foreman

Editor's Note: For purposes of uniformity throughout this book, Coal Preparation, 5th Edition, the editors have advocated the use of the U.S.A. Sieve Series of testing sieves (see Table 6-2) as the testing sieves of modem choice. The adoption and use of the U.S.A. Sieve Series and its forerunner, the Tyler Standard Screen Scale, has for over seventy-five years introduced uniformity into reports; has simplified the comparison of results; and has provided control for operation of modem coal preparation circuits. While a full explanation of the differences, and more importantly the similarities of these two measuring systems cannot be stated here, it is felt that a brief clarification of terms is in order. The difference between the U.S.A. Sieve Series and the Tyler Standard Screen Scale Sieve Series is the identification method. Tyler Screen Scale sieves are identified by mesh designation with the width of opening varying by the square root of two, or 1.414 times the width of opening in the previous sieve. The U.S.A. Sieves are identified by openings in millimeters or microns and also arbitrary numbers which do not necessarily mean the mesh count; this series uses width of opening variations in the order of approximately the ratio of the fourth root of two, or 1.189. Tyler Standard Screen Scale and U.S.A. Sieves can be used interchangeably, and to avoid confusion the nameplate of all Tyler Screen Scale sieves show the U.S.A. Number, while all U.S.A. Sieves show Tyler Screen Scale mesh equivalent numbers on the nameplate. INTRODUCTION Sizing is the process of separating mixed mineral particles into groups of particles all of the same size, or into groups in which all particles range between definite maximum and minimum sizes. This chapter applies the modem mechanical screen and the liquid-solid cyclone (hydrocyclone) to the process of sizing solid particles as applied to coal preparation. Screening is a mechanical process that separates particles by size. Modem coal preparation is made possible by efficient sizing. Sizing of coal is defined in terms of the opening through which an individual particle will or will not pass, or as two openings, the larger of which passes the particle and the smaller of which retains the particle. Screening accomplishes sizing by passing coal of a wide range of sizes through a series of screens, each of a decreasing size. The individual screen discharges are then directed into different screen products for subsequent sale or processing. Screening in modem preparation plants is done for the following reasons: 1. Removal of fine coal before a size reduction step. 2. Size separation of the coal into a coarse and fine fraction for sized products or for processing in coarse and fine coal circuits. 3. Recovery of heavy media from heavy media coal cleaning circuits.

Jan 1, 1991

Power consumption of stirred media mills has been studied by an approach developed from work on stirred reactors. Relationships between torque required to rotate both disc and pin impellers immersed in dense particulate media as a function of speed, impeller and tank dimensions, and other relevant variables are evaluated. Data collected during numerous different experimental conditions are analyzed. The results can be summarized and presented in the form of characteristic plots, general equations and dimensionless group correlations involving power and modified Reynolds numbers. Special attention is directed towards the rheological properties of the media, which is considered as non-Newtonian liquids and hence, the equation of power law liquids is employed. Procedure for estimating parameters of effective viscosity and scale-up guidelines with respect to power consumption are put forward.

Jan 1, 1994

By S. K. Palm

Volatility is a fact of life in the mining industry. Prices of and demand for mineral products are among the most volatile of those for any product. The volatility of these markets wreaks havoc on both corporate management and the personal lives of mining people. Yet, until recently, it has been difficult to assess the impact of volatility on business strategy. This paper discusses how mining firms can profit from market volatility through an operations strategy that stresses operating flexibility. The foundation for our strategy analysis is the observation that a mine is analogous to a stock option. Techniques based on those developed to value stock options have recently been extended to the field of mine valuation. The insights provided by option pricing are very valuable in the development of mine operating strategy.

Jan 1, 1986

By A. Adhikari, P. Tukkaraja, S. Jayaraman Sridharan

Shafts are critical components of the mine ventilation systems and contribute significantly to the mine ventilation pressure. Estimation of shaft pressure losses is an important aspect of mine ventilation planning and shaft frictional pressure losses are extensively studies. Shock losses contributed by shaft buntons are estimated using the interference factor model developed half a century ago. This study aims to develop a better performing prediction model for shaft buntons using state of the art experiment and numerical data, and machine learning techniques. Results show that the present prediction model is performing poorly, and the prediction performance can be improved by incorporating additional predictor variables. The Artificial Neural Network standardized Machine Learning model developed in this study is able to predict the shaft bunton shock loss with high accuracy (R2 = 0.956).

Jun 25, 2023

By Raj K. Rajamani

In ball milling the rates of breakage vary primarily with the size distribution of powder in the mill. In wet grinding viscosity of the slurry varies continually as size distribution changes and hence the breakage rates change. In this study a simpler estimation scheme is used to determine breakage rates in batch grinding. Using an approximate solution to the batch grinding equation, acceleration and deceleration of breakage rates of all individual size classes is determined when the grinding environment is varied. Experimental results with limestone and copper ore show time-dependent breakage rates under both dry and wet grinding conditions. In general the breakage rates increase for coarse sizes and decrease for fine sizes with increase in the fines present in the mill. Such variations have strong implications in closed-circuit grinding.

Jan 1, 1991

By George D. Lessner

I'm sure that everyone at this meeting is aware of the current problems facing the U.S. metals mining industry. Prices are depressed and expected to remain depressed for quite some time. On the other hand, industrial minerals, including talc, are doing quite well. The profitability of industrial minerals has sparked considerable interest on the part of many companies in expanding into industrial minerals. Our company is one of those actively seeking to expand its position in industrial minerals. It is appropriate that the A.I.M.E. asked me to speak to you regarding entry into the talc business. So how do you get into the talc business? Earlier speakers have explained how to locate, mine, process, and market talc, so you have the "how ton.

Jan 1, 1984

By Paul Kents

The Canadian Javelin Limited Cerro Colorado copper-porphyry deposit in Panama, possibly the largest known copper-porphyry, contains between 1350 and 450 meter elevations, drill proven and probable ore in excess of 3.0 billion tons averaging 0.65% of copper equivalent. The deposit is located in the Central Cordillera Range, straddling the Continental Divide at 1500 meter elevation. Local topography is very steep. Accessibility is difficult, all logistics made by helicopter, and only recently a 52 km. road from the Pan-American highway was completed into the area. The deposit was discovered in 1969, and since then 75 shallow exploratory holes and 98 deep holes, the deepest 1340 meters, totalling 45,000 meters have been drilled. Deep holes were drilled at the corners of a regular rectangular 150 meter grid.

Jan 1, 1975

By J. M. Kaufman

Recent mining regulations have increased the need for detailed engineering and environmental information pertaining to the hydrogeologic environment in mining areas. The cost of obtaining such hydrogeologic information has also increased. After mineralization of potentially economic grade ore and tonnage has been identified, and after completing preliminary mining feasibility studies (suggesting that development is merited), a second exploration phase can incorporate a simple, cost-effective baseline hydrogeologic data reconnaissance program that is linited but useful. Using exploration drill holes only, this program can provide a direct indication of where ground water is encountered. Also, reasonable estimates can be made on the relative production of water from various water-bearing strata, a composite potentiometric surface map can be prepared, and the general chemistry of the ground water can be characterized.

Jan 1, 1984

By P. A. Meyer

The Tenmile Range is a north trending zone of high relief within the central Colorado porphyry-mineral belt, located between Leadville and Breckenridge. (Figure 1, the Index Map of the area surveyed.) The Climax mineralized zone is located at the southern end of the range on the northwest side of the Continental Divide. This portion of the total area surveyed will be discussed in detail today. A fixed wing aeromagnetic survey was flown over this range and mineralized zone in the fall of 1957. The survey was run as an experiment to see if a useful geophysical tool could be applied in the exploration for similar type deposits. The purpose of this paper is to describe the results of this survey and the approaches used to aid in the interpretation of the total intensity data.

Jan 1, 1968

By Francisco A. Fonseca

The Carajás Hills are in Brazil's Eastern Amazon, between the Araguaia and Xingu rivers, and parallels 5° and 7° Latitude South. A location map is given in Fig. 1. It is an area of low mountains (maximum altitude 900 meters), covered by the Amazon rain forest. Annual average temperature is 25°C, ranging from 31°C (maximum) to 19°C (minimum). Annual rainfall averages 2,000mm. Although it rains throughout the whole year, heavy rains occur from December through March. At the beginning of the 20's, Brazilian explorationists made brief geological descriptions of the area. Due to the thick soil, scarce fresh rock outcrops and the tropical forest covering a completely unpopulated area, detailed geological studies were difficult and reconnaissance expeditions were limited to the river margins.

Jan 1, 1982

By Carl C. Martin

The treatment of ores in preparation for fatty acid flotation is characterized by a wide divergence in methods, and attempts to define "common practice", even for the same type of mineral, are usually of little value because of the numerous exceptions. Such factors as desliming, pulp density, pulp temperatures, and reagents for conditioning are successfully employed under conditions representing almost extreme opposites. More precise control of variables is necessary than with sulphydric flotation processes It appears likely that variations result from independent development of a process from the multitude of variables that characterize fatty acid flotation and the ores of non-metallic minerals. Consequently, a symposium is a suitable way of presenting a summary of pretreatment methods for fatty acid flotation processes, together with froth control practices, as they exist today.

Jan 1, 1959

By M. F. Dibble

The Fosfago phosphate rock concentrator is located in the state of Goias, Brazil, 300 km south of Brasilia. The ore is from an enriched carbonatite, which was discovered in 1971 during exploration for pyrochlore niobium ore. The flowsheet was developed in Brazil by personnel from Agrico Chemical Company and Consolidated South America. Engineering was provided by Codemin, a subsidiary of Consolidated, Engineering and construction management was pro- vided by both Agrico and Consolidated personnel who formed the Fosfago team. The concentrator was designed for 500,000 tpy of 37-38% P2Oj dried product. The facilities consist of open pit mining, crushing, stockpiling, and concentration. The product is pipelined seven km to a filtering, flash drying, and railroad loadout station. The plant was successfully started in May 1979.

Jan 1, 1980

By James McManus

The Lornex mine is located on the Southern slope of the Highland Valley in South Central British Columbia. The large low grade deposit was discovered in 1964; stripping began in 1970, and the mill started commercial production in October of 1972. The orebody is classified as a complex porphyry type having as major constituent quartz diorite, with varying amounts of quartz, grano diorite, and porphyry. A substantial degree of alteration is evident in the host rock, and this became the key factor in major equipment selection for the grinding section. A pilot plant was constructed on the property capable of treating 100 TPD of ore. The ore was mined to be as representative as possible of the entire orebody by sinking a shaft and cross cutting the deposit underground.

Jan 1, 1975

By C. F. Bonney

Spherical or oil agglomeration has been recognised for many years as a possible process for the recovery of mineraVmetal values. BP has investigated the potential of spherical agglomeration for a number of minerals as have other workers. Testwork has also been carried out by both BP and others on the selective agglomeration of fine coal. The spherical agglomeration of both minerals and coal depends on the use of an immiscible liquid e.g. a hydrocarbon which is added to a suspension of the solids in water. On agitation the oil is distributed over oleophilic/hydrophobic surfaces and particle impact allows inter-particle liquid bridges to form causing agglomeration. It is also possible to enhance the oleophilicity of the material to be recovered by the use of collectors similar to those used in froth flotation.

Jan 1, 1998

By W. E. Benton

The name Perlite applies to both a hydrated volcanic glass containing from 2% to 5% combined water and to the lightweight material that is produced from expanding the sized volcanic glass. Upon heating, Perlite expands to about twenty times its original volume which results in a material of low density, low thermal conductivity, and high sound absorpt'ion. Perlite ore is mined by open pit methods and is crushed and sized to provide specific gradations for expanding into products used in acoustical tile, built- up roofing, filtration, lightweight concrete and horticultural applications, among others. In 1983, the U.S. production of crude Perlite came from 12 mines and 6 western states, with apparent consumption and production estimated to be about 6% lower than 1982. The average price per ton was slightly higher than in 1982.

Jan 1, 1984

By E. M. J. A. Pallone, F. N. Cunha, W. S. Resende, R. M. Stoll, R. C. Bradt

Utilization of the magnesium aluminate spinel in refractor' applications is briefly reviewed. The synthesis of a magnesia aluminate spinet aggregate from natural raw materials is considered in terms of the crystal chemistry of the spinet structure and expected impurities. Principles for the formation of this spinet refractory aggregate from different natural raw materials are presented. The basic concepts were then applied to the reaction of a bauxitic clay with a natural magnesite. This combination of raw materials has the potential to produce a low-cost refractor' aggregate that is a composite of spinel and forsterite. Experimental results are reported to produce a spinel refractor.' aggregate containing a small amount of forsterite. It possesses low apparent porosity and high bulk density suitable for industrial refractor' applications, including steelmaking, aluminum and copper foundries and cement production.

Jan 1, 2002

By Lee A. Goetz

Cost control is a lot like motherhood - everyone proclaims its need and its worthiness, but is it really appreciated and used to successfully complete a project on time and within budget? Good Cost Control is a yardstick - requiring fixed definition but this does not mean rigidity for the project. It provides the means for telling: 1. Where you are going 2. When you will complete and 3. What it will finally cost. Cost Control does not fix the price of dreams nor the cost of projects loosely defined. It does not control costs in itself but provides the tools whereby engineering decisions can be made which will ultimately affect the project cost It does not even guarantee that a project will be completed within the original funds - but only, if this reflects management desires.

Jan 1, 1970

By J. M. Barker

The concept of global-market access through transportation efficiency is a concept whose time has come. The basis of this approach is customer satisfaction—the higher the better. But beyond what seems almost too logical is the question of how to achieve this market access. All industrial mineral exporters face stiff competition. Factors include proximity of competitive industrial minerals and substitutes, pricing pressure, political and cultural differences, currency fluctuations, communication problems, trade finance restrictions, and transportation imbalances. The following discussion will focus on transportation activities in global competitiveness, but the producer with the larger offering of services will often make the sale, not necessarily the low-cost producer (Cook, 2002). Some key concepts for global-market access are “the market concept,” just-in-time delivery, quality retention, and global customer service.

Jan 1, 2003