Search Documents

"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By Eldon L. Brown

Location and History The Sherritt Gordon property is located in northwestern Manitoba, about 100 miles north of The Pas and 40 miles northeast of Flin Flon. It is connected with the Manitoba Northern railway, which runs from The Pas to Flin Flon by a branch line, 42 miles in length. The location of the property is shown on the sketch-map, Figure 2. The ore deposit was first discovered by Philip Sherlett, a Cree Indian, in 1922. In 1924 Sherlett's claims lapsed and the ground was re-staked by Carl Sherritt and Dick Madole, and was optioned by them to J. P. Gordon in the summer of 1925. Gordon re-optioned the property successively to three well-known mining groups, one of which did some surface trenching .and put down 28 shallow diamond-drill holes before dropping their option. In the latter part of 1927, a Company known as Sherritt Gordon Mines, Limited, was formed to take over the property, and preparations were made for systematic development work. Preliminary Development In order to fill-in gaps left by the original drilling, a light diamond-drill outfit was flown-in to the property from the Hudson Bay railway in the early fall of 1927. Ten shallow holes were put down before freeze-up .and a considerable amount of surface trenching was completed. Based on the results of the surface trenching and the shallow diamond-drilling, an extensive development campaign was outlined. A winter road, 90 miles in length, was cut from mileage 55 on the Hudson Bay railway, and during the winter of 1927-28 a total of 2,600 tons of freight was hauled-in to the property. This freight included four complete diamond-drill outfits, two complete mining plants, building material for two sets of camps, and supplies for one year's operations, including 105,000 gallons of fuel-oil for Diesel engines.

Jan 1, 1933

By C. Bourgoin

"The factors constraining productivity in the mining of narrow vein ore deposits are numerous and often interdependent. This paper concerns mining techniques capable of reducing some of these constraints in the case of vein deposits whose dip is less than 45 degrees. Modifications of conventional mining methods as well as suggested new developments are presented, as are matters pertaining to the mechanization of operations as a mean of increasing both productivity and work safety. IntroductionThe mining of vein deposits, whose width (thickness) is generally less than 2 metres and whose dip is often variable, calls for the use of varying stoping procedures as well as appropriate infrastructure and equipment. In the case of intermediate dips (15 degrees to 45 degrees), it is generally conceded that the degree of mechanization is limited and that ore removal via gravity is impossible. This paper proposes certain innovations in matters of equipment use and stoping methods, together with certain technical data pertaining to the application of these new procedures Stoping MethodsTo mine vein deposits, one must choose a method that can adapt to irregular ore limits and allow, as well, for good ore recovery with as little dilution as possible. In addition, it is important to minimize development work in waste rock. In principle, one selects a method that is both safe and profitable; this method will be defined mainly by the nature of the vein deposit and its dip, by the competency of the rock formations and by certain technical considerations. Moreover, the stoping procedure in a given deposit may well change with time as a function of new layouts or new equipment."

Jan 1, 1994

By M. Dupuis

In the present study, the heat balance of the Hirakud smelter aluminium reduction cell has been accurately assessed using only a surface thermocouple and a pyrometer, As it is well known that using a single linear or quadratic relationship to estimate the heat flux from the measured surface temperature does not provide the accuracy required to close the cell heat balance, this approach was not used in this study, Instead, the fundamental natural convection and radiation heat flux equations were used systematically for each measurement point, Practically, this means that the ambient air temperature and at least one ambient radiative temperature must also be known in addition to the surface temperature for each measurement point. Sometimes, the radiative heat flux could not be accurately estimated using a single ambient radiative temperature, In those cases, a more accurate estimation based on two ambient radiative temperatures and corresponding view factors has been used instead, It turns out that although at least three temperature measurements are required to estimate a single heat flux, it takes a lot less time to make those temperature measurements using a pyrometer than directly measuring the heat flux using an expensive heat flux meter, Furthermore, no loss in accuracy was detected when using this approach as the cell heat balance could be closed within 5%, the level of accuracy typical of cell heat balance assessment using heat flux meter.

Jan 1, 2004

By Brad Gunn

Our program has been dictated by the necessity of broadening our markets through converting potash chemicals to fertilizers more in demand than potassium chloride. To this end, we have undertaken studies on methods of preparing potassium sulphate or potassium magnesium sulphate by rather simple conversion. When mixtures of sodium and magnesium sulphates are reacted with potassium chloride, the ratio of sodium to magnesium is quite pertinent. A range of ratios has been selected and the conversions of potassium chloride to sulphate have been assessed by cyclic operations. Results from experimental procedures for producing potassium nitrate are also avail-able. The influence on recovery for systems including organic solvents is assessed for a variety of situations.

Jan 1, 1971

Traditionally within the mining industry, single models for both grade and geology of orebodies are created upon which all mine development decisions are based. These models provide a single interpretation of the extent and continuity of the mineralization envelope based on solids and sections interpreted from relatively wide spaced drilling i.e. the models infer behaviour of grade and geology at smaller/local scales based on data available at wider scales. The variable behaviour of grade and geology cannot be derived from single kriged resource models. In recognition of this, Newmont Mining Corporation typically uses Sequential Gaussian Simulation (SGS) to quantify grade variability and to determine its effect on some of these mine development decisions. In most of these studies the mineralized envelope remains fixed and grade simulations are generated within a fixed volume. To account for uncertainty in the geology/ mineralization envelope Newmont Mining Corporation has been experimenting with Multiple Point Statistics (MPS). Multiple-Point Statistics is an emerging technique, which can be used to generate multiple, geologically realistic, realizations of data that displays complex non-linear features. MPS uses a conceptual model of the geology, called a Training Image (TI), to infer these high-order spatial relationships. The multiple realizations allow for an assessment of the geologic uncertainty, which can be further combined with grade simulations to generate a more complete picture of the true uncertainty of a mineral deposit.

Jan 1, 2011

By N. M. Stubina, P. J. Lind

Barrick Gold is in the process of building several new mines and implementing new processes at existing mines for which metallurgical technology is of key importance. The roles of the company's Strategic Technology Solutions team and the Barrick Technology Centre are discussed within the context of their responsibilities within Barrick's Operations Support group. The paper will present an overview of the development of the technology centre from the former Placer Dome Research Centre to its current form supporting strategic technology, capital projects, and operating sites. Novel approaches to research and development will be presented as well as an overview of some of the technologies developed from bench-scale to pilot-scale, and beyond.

Jan 1, 2011

By P. Shibley, P. R. Clarke

Since this was an interim report of the initial operation of a long term project it is not available for publication. It is expected when the project is completed a full report of the work will be published.

Jan 1, 1968

By Gerald Sanders

Presentation Topics ? We?re Going to the Moon Again? ? What is Lunar Mining ? In-Situ Resource Utilization? ? What Are The Challenges to Lunar Mining? ? What is NASA Currently Doing?

May 1, 2009

By T. G. Joseph, M. J. Bolster

ABSTRACT This paper explores passive seismic measurement as an alternative, nonintrusive approach to conducting annual brake testing on surface mine sites. Dictated by the test site location, this evaluation adhered to the brake testing procedure as per British Columbia occupational health and safety regulations. Results showed excellent correlation to those reported via conventional practice: Comparing stopping distance, time, and velocity for the proposed instantaneous passive seismic versus conventional approaches, less than a 0.5% variance was evident. A viable alternative, the passive seismic approach, allowed an entire fleet of trucks to be sequentially evaluated for annual brake testing without disrupting operations by installing mechanical testing equipment.

Jan 1, 2012

By P. Langlois, G. Labonté, J. J. Barrett, J. Holmes

"The Voisey’s Bay mill processes a high-grade pentlandite and chalcopyrite ore in a largely pyrrhotite/troilite matrix. From 1994 to 1997, circuit development focused on making a 14% nickel concentrate. When flowsheet development resumed in 2001, the target grade was raised to 20% ni. initially triethylene tetramine and sulfite pyrrhotite depressants were used in a lime circuit, but by recycling process water and the contained thiosalts, the required nickel grade was made without depressants. construction of the mill was fast-tracked, with start-up in september 2005. ramp-up was faster than other recent nickel installations, with tonnage being limited by concentrate dewatering due to higher-thanexpected ore grades.RÉSUMÉ l’usine de traitement de Voisey’s Bay traite un minerai à teneur élevée en pentlandite et chalcopyrite dans une matrice formée surtout de pyrrhotite/troïlite. De 1994 à 1997, le développement du circuit ciblait la production d’un concentré à 14 % de nickel. lorsque le développement du schéma de traitement a été repris en 2001, la teneur cible a été élevée à 20 % de ni. initialement les déprimants triéthylènetétramine et sulfite de la pyrrhotite étaient utilisés dans un circuit à la chaux; cependant, en recyclant l’eau du procédé et les sulfosels qui y sont contenus, la teneur en nickel a été atteinte sans utilisation de déprimants. la construction de l’usine de traitement a été accélérée et elle a démarré en septembre 2005. la mise en opération a été plus rapide que pour d’autres installations récentes de nickel; le tonnage traité étant limité par le séchage du concentré en raison des teneurs de minerai plus élevées que prévu.INTRODUCTIONnickel was discovered on canada’s east coast in the vicinity of Voisey’s Bay, northern labrador, by chislett and Verbiski (Higgins, 2011) while working for Diamond Fields resources in 1993. The ovoid deposit was subsequently delineated in the winter of 1994–1995. By the end of 1995, the ovoid had been well explored, and at that time was thought to have a reserve of at least 30 million tonnes (Mt), with an average grade of 2.83% ni and 2.0% cu (naldrett, singh, Krstic, & li, 2000). Drilling to the east of the ovoid indicated the presence of significant mineralization. in June 1995, inco limited bought a 25% share in the Voisey’s Bay nickel company (VBnc), which was a subsidiary holding company set up by Diamond Fields. inco also bought 8% of Diamond Fields and negotiated the right to sell all the nickel produced from VBnc for 20 years as part of this agreement. in april 1996, inco bought Diamond Fields and acquired the remaining 75% of VBnc shares."

Jan 1, 2017

By J. G. Manchuk, M. Thurston

"The degree of uncertainty associated with a natural diamond resource is important to quantify from the time of discovery through the production lifetime. Data collection occurs during the discovery, exploration, delineation, and production or recovery phases. Quantifying the relationship between data and uncertainty is an important component of project valuation. The value of data is measured as their potential to reduce uncertainty if they are collected. A method is developed using Monte Carlo simulation for predicting resource uncertainty and valuing data during critical phases of development, particularly discovery and exploration. The technique is applied to diamond pipe deposits.RÉSUMÉ Il est important de quantifier le degré d’incertitude associé à une ressource diamantifère naturelle, depuis le moment de sa découverte et durant toute la durée de l’exploitation. La collecte de données se fait durant les phases de découverte, d’exploration, de délimitation, et de production ou de récupération. La quantification de la relation entre les données et l’incertitude est une composante importante de l’évaluation du projet. La valeur des données est mesurée en tant que leur potentiel à réduire l’incertitude si elles sont recueillies. Une méthode a été développée qui utilise la simulation de Monte Carlo pour prédire l’incertitude de la ressource et évaluer les données durant les phases critiques du développement, surtout celles de la découverte et de l’exploration. La technique est appliquée à des gisements de cheminées diamantifères."

Jan 1, 2015

By M. Reda

Inorganic oxidizing agents of the type MeOx-z such as Chromate, Vanadate, Tungstate, and Molybdate... etc. are widely used as corrosion inhibitor. In non acidic solution these oxidizing agent are reduced on the surface of the meta, according to OX + m e + p H20 Red + n OH" In which y = (n-m)/m. The purpose of this publication is to show that for many metals the value of y for any oxidizing agent determines the possibility of that oxidizing agent being an inhibitor or activator for the corrosion process. The inhibition efficiency for other ions such as Pertecnetate and Tellurate which have not been extensively studied can be predicted. A mathematical, equation was derived to express the relationship among the concentration of oxidizing agent, degree of retardation of the corrosion process I cord cor ° (ratio of corrosion current in the solution containing inhibitor to the base solution) , ionic strength of the solution and the coefficient y. The validity of y and the mathematical, equation were verified by many experimental, works on various metals such as zinc, aluminum and steel. Al, the above research works are based on the published research works of Prof. Mikhailoviskii (from 1979 til, 1998) from the Russian Academy of Science.

Jan 1, 2010

By J. U. MacEwan

THE basis on which the modern metallurgical industry is operated is the endeavour to attain maximum return in purchasing power for the least expenditure of energy. This has always been the general objective of the industry, as of all industries. In recent years, however, it has received a new emphasis. Today, as never before, increased attention is being directed to the detailed study of plant operations and the application of scientific knowledge and of business principles in order to achieve the maximum efficiency. This new emphasis is the result in large part of the new problems and conditions with which the industry has been confronted, chief among which are the following: (l) Development of new ore-bodies and the treatment of complex ores. (2) Necessity of achieving a greater degree of purity in some of the metals in order to meet the newly discovered demands for some of the industrial metals. (3) Discovery of new markets for many of the metals, either in pure form or in the form of alloys. ( 4) Change in values, absolute or relative, of some of the important metals. (5) Increasing scale of investment in expensive plant and equipment, which makes imperative most efficient utilization if total unit costs are to be kept to a minimum. (6) Increasing scale of operations in some important branches of the industry, which also makes essential maximum efficiency in organization, administration, and operation. The success with which the metallurgical industry has met the problems created by these changing conditions has been due primarily to the following factors: (1) Results of research and experimental work carried on by universities, government laboratories, and many private corporations in the industry itself. (2) Closet study of every detail of plant operation, both from the technological and from the economic point of view, with the object of increasing plant efficiency. (3) Interchange of information and experience amongst the operating companies. It is only by the concerted efforts of numerous investigators and experimenters that the underlying fundamentals of plant operations can be learned. The exchange of results permits their easy assembly and correlation with maximum benefit to the whole industry. Unnecessary duplication of research and experimental work is avoided and the industry as a whole is able to reap the fruits of this work with the maximum of-speed and efficiency. (4) Advances made in recent years in so-called 'scientific management' in industry as a whole and the application of the principles learned to the metallurgical industry. A review of the modern trends in extractive non-ferrous metallurgical processes illustrates the afore-mentioned new conditions and problems, and gives some idea of the methods by which they have been and are being surmounted.

Jan 1, 1937

By J. Gordon Parr, D. A. Whitaker, G. A. Yorko

High purity alloys of zinc with 25 per cent to 50 per cent aluminum, have been prepared. Mechanical properties of the as-cast and heat-treated alloys have been related to constitution, determined by x-ray diffraction and microscopic methods. Investigations include the effects of aging and of small nickel additions on the properties of the alloys.

Jan 1, 1960

By L. Don Leet

Abstract Earthborne vibrations from blasting and other sources, including rock bursts, can now be recorded effectively. The nature and magnitude of vibrations from various sources have been investigated and certain applications of the knowledge thus gained have been made. Vibrations from blasting have been measured on special equipment over a range from an electric blasting cap at a few feet, through the largest quarry shot in history to date ( 1,-362,985 lb.), to the first atomic bomb, in uew Mexico on July 16th, 1945. Laws relating amount of explosive to amount of vibration at different distances have been developed and tested. Special studies have been made of the effects of vibrations on buildings, particularly from the standpoint of possible structural damage. Recorded vibrations are used to study the effects of modern short-period delay shooting. It ?has been found that short-period delay firing is extremely effective in reducing vibrations under the right conditions, but with certain limitations. In quarry shooting, there appears to be a minimum number of holes below which vibrations are not appreciably reduced by short-period delay firing. In several instances this minimum has been near 7. Vibrations in the ground from rock bursts and the effects of mining in stresesd ground have been studied both underground and on the surface in a search for a rock burst warning system. Introduction Earthborne vibrations from blasting and other sources, including rock bursts, can now be recorded effectively. Analyses of blasting records have been yielding increasing funds of information of practical as well as theoretical interest. The nature and magnitude of the vibrations have been investigated with special reference to their effects on structures.

Jan 1, 1951

By Alan Rice

Abstract-The mechanism by which stratiform ore deposits of PGE (platinum-group elements) are laid down in ultramafic igneous complexes is not completely clear. Early studies by the author and coworkers on numerical analyses of the convective cooling of low-Rayleigh-number magma chambers examined the effect of suspended crystal load on fluid density, and raised the possibility that the growth of the suspended crystal load during cooling could split a magma chamber into several convecting layers. The lower layers would have a higher content of refractory phases than the upper layers, which would consist of more evolved melt. This paper considers numerical modelling, as well as theoretical and experimental work in other fields dealing with suspended loads in fluids. The calculations, which are based on the physics of convecting magmas, yield quantitative relationships consistent with the observation that economically interesting stratiform PGE deposits are restricted to large magma bodies, and also yield estimation of the depth in a magma chamber at which certain grades of mineralization may occur.

Jan 1, 1997

By Alan Rice

The mechanism by which stratiform ore deposits of PGE (platinum-group elements) are laid down in ultrama?c igneous complexes is not completely clear. Early studies by the author and coworkers on numerical analyses of the convective cooling of low-Rayleigh-number magma chambers examined the effect of suspended crystal load on ?uid density, and raised the possibility that the growth of the suspended crystal load during cooling could split a magma chamber into several convecting layers. The lower layers would have a higher content of refractory phases than the upper layers, which would consist of more evolved melt. This paper considers numerical modelling, as well as theoretical and experimental work in other ?elds dealing with suspended loads in ?uids. The calculations, which are based on the physics of convecting magmas, yield quantitative relationships consistent with the observation that economically interesting stratiform PGE deposits are restricted to large magma bodies, and also yield estimation of the depth in a magma chamber at which certain grades of mineralization may occur.

Jan 1, 1997

By F. Ajersch, M. Rigaud, M. Jallouli

"Le gonflement des boulettes d'hématite à été étudié à l'aide d'une méthode de mesure standard ISO ainsi qu'à l'aide d 'une méthode de mesure dilatométrique.La première méthode a servi à l'étude des boulettes haute silice (5% SiO2) dont l'indice de basicité (IB = CaO + MgO -i- SiO2 + Al2O3) a été ajustée soit à l'aide d'une addition de dolomie, soit à l'aide d'une addition de pierre à chaux, soit à l'aide d'une addition de ces deux composes. L'indice de basicité variait de 0.05 à 0.12. Les résultats de gonfle ment obtenus à 1000?C dans une atmosphère de 40 CO - 60 N2 ont permis de montrer qu’indépendamment de l'indice de basicité c'est la dolomie qui contribue le plus à diminuer le gonflement par rapport à la pierre à chaux. L'utilisation de l'indice de basicité comme critère de sélection des boulettes est discutée.La méthode dilatométrique a servi à l'étude du gonfle ment de deux types de boulettes préparées à partir de deux concentrés de fer et dont la teneur en silice a été fixée à 2.5% et 0 5%. Ces deux types de boulettes ont reçues les mêmes additions de liant en quantité et en nature. La détermination en continue du gonflement, à 950?C dans 40 CO - 60 N2, a permis d'une part de mieux cerner le niveau de réduction auquel correspond le maximum de gonflement et d'autre part de montrer que l’allure des courbes de gonflement est étroitement liée à la nature du liant. Une augmentation de la teneur en silice des concentres contribue à diminuer le gonflement des boulettes.Des essais de réduction de gonflement non isothermes ont été réalisés à des montées de température à 10 et 20?C/min. Les résultats indiquent que le gonflement déterminé dans les conditions non iso thermes est inferieur à celui obtenu lors des essais isothermes. On discute alors de la validité des essais standards de gonflement qui sont utilisés pour prédire le comportement des boulettes lors de leur réduction dans un haut fourneau."

Jan 1, 1983

By K. Hawboldt, J. E. Halfyard, C. Bottaro, I. A. Harrison

"The removal of elemental sulfur from leach residues derived from massive sulfide concentrates via hydrometallurgical routes has been demonstrated in a laboratory setting by converting water-insoluble sulfur to water-soluble polysulfides. The approach was applied to leach residue from Vale's nickel hydromet demonstration plant in Argentia, Newfoundland, which contained significant amounts of elemental sulfur. This technique offers an alternative treatment protocol for residues with a sulfur component not amenable to standard flotation/hot filtration processes. The practical considerations of a proposed flow sheet will be discussed including the impact of other sulfur species (e.g. thiosulfate and sulfides) and key process variables. INTRODUCTIONPresently, large scale elemental sulfur extraction from hydrometallurgical leach residue is performed by Teck Resources using a process of sulfur flotation followed by hot filtration (Chalkley et al., 1993). As mentioned, the technique proves viable for residues derived from specific concentrations - in this case zinc - whose residues constituency is primarily elemental sulfur itself. However, problems arise when this constituency is altered as happens when, for example, a mine containing one particular concentrate is mixed or replaced with a differing concentrate from a second mine. Such cases can often strain the effectiveness of current sulfur removal processes (D'Odorico, 2004). If hydrometallurgical residue containing elemental sulfur cannot be effectively treatment by flotation, the residue is stored subaqueously as is the case in some 'grass roots' hydrometallurgical plants (those not coupled with smelting operations). Hydrometallurgical processing of concentrates involving pressure leaching is becoming increasingly common throughout the mining world, the genesis of which can be found in research performed by Sherritt in Fort Saskatchewan since the 1950’s (Ozberk et al., 1995).The investigation of elemental sulfur removal by means other than flotation includes the uses of sulfide salts (NH3S or Na2S) effecting the conversion of hydrophobic elemental sulfur to hydrophilic polysulfides. The work of Kunda et al. (1974) and Olper et al. (2007) shows that elemental sulfur can be quantitatively removed from hydrometallurgical leach residue via the formation of a mixture of polysulfides."

Jan 1, 2012