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By T. R. Ellis

Minerals Appraisers/Valuers often find great difficulty or failure in attempting to employ the Sales Comparison Approach to the Market Value Appraisal of development and operating stage mineral properties. An important factor generally overlooked is a comparison of net operating income (NOI) margins on a per-unit-of-production basis between mineral properties, whether these be demonstrated or forecast margins. NOI margins can vary greatly between mines or quarries that are producing similar products. Ultimately, the expected NOI margin determines what a buyer is willing to pay for an income producing property. Common criticisms of the sales comparison approach by minerals appraisers are introduced. These are counterbalanced by raising some issues in the way the inputs for the Income Approach are usually derived by minerals appraisers, and by review of some conspicuous examples of the much too common misuse or abuse of the income approach in market value minerals appraisals. Example transaction analyses and sales comparison analyses are used to demonstrate the author?s methodology for adjusting units of resource in his transaction adjustment tables (see APPENDIX). The examples are used as the basis for discussion of ways to employ adjustments for operating economics and many other factors, while cautioning about the potential for double counting. The conclusions include a recommendation that minerals appraisers attempt to apply at least two of the three valuation approaches when appraising the market or fair value of development and operating stage mineral properties, the two being the sales comparison and income approaches.

Jan 1, 2011

By G Njowa

Mineral resource evaluation and estimation process is not an exact science; however it depends on the knowledge and experience of the competent person and his ability to apply his mind, make reasonable assumptions, interpretations and exercise sound judgment in the mineral resource estimation process. The mineral resource evaluation results in a mineral resource statement are disclosed to investors. The minerals industry is presently undergoing rapid changes in legislation governing the public reporting of mineral assets. It has gone through different phases of development with respect to the reporting of mineral resources and mineral reserves (mineral assets). In the past no reporting was done and currently mineral assets are reported as a supplementary section that briefly describes the mineral asset termed ?the mineral reserve and mineral resource statement?. The current industry trend appears to be going towards recognition and disclosure of the mineral assets on to the balance sheet. This paper explores the salient issues behind the mineral resources and mineral reserve statement of vein and reef deposits published in the public domain. It also highlights the potential misleading consequences of these issues and which filter through to the valuation of these particular mineral assets. The creation of reporting standards in the minerals industry has made significant inroads in standardizing and consolidating the interpretation and understanding of the different classification categories in the industry in an effort to promote common interpretation towards these salient issues.

Jan 1, 2008

By Roberto Busato Belger

- Fertilizer Business Overview - Supply -Demand Balance in the World - Supply -Demand Balance in Brazil - Brazilian Market Growth Opportunities - Fosfertil Operations - Fosfertil Expansion Plan - Salitre Project - Project Characteristics - Technical Challenges and Solutions - Technical Support Studies Conclusions

May 1, 2010

By P Williams, S Flynn, R Birchfield, R Simcock, R Toft, P Comeskey

Direct transfer, or community translocation, comprises salvage and replacement of intact æsodsÆ of vegetation together with underlying soil. It has been applied to New Zealand mine sites restoration of native grasslands, wetlands, scrub lands, and forest. It is an equivalent technique to æinstant lawn or tree gardenÆ, commonly used in urban landscaping. Two to six m2 scoops of vegetation, with up to 0.7 m of soil attached, and including root plates of trees and shrubs, are relocated from stripped areas ahead of mining to sites prepared for restoration. Direct transfer uses hydraulic excavators or face shovels and dump trucks, possibly with the aid of bulldozers and other earthmoving machinery. The main advantages of direct transfer, compared with sowing or planting systems for mine site restoration, are the recycling of plant and soil materials which were often wasted by burying under overburden materials, a significantly faster revegetation process, and restoration of the whole ecosystem (plants, animals, birds, invertebrates, and microbes). The main disadvantages are higher costs of stripping and dumping, a greater degree of machine operator skill required, and scheduling becomes critically important. To illustrate the key principles, this paper gives examples of successes and failures of the technique for a variety of New Zealand mining situations. Direct transfer has been successful for a range of communities, from fern wetland and sub-alpine tussock grasslands to 5 m-tall beech forest under storey and seral shrub land, and from temperate to sub-alpine climates. Successful examples show both rapid recovery of indigenous vegetative cover and conservation of habitat for birds and invertebrates. Failures have resulted from excessive death of plants because of inadequate soil salvage depths, acidic leachates, inappropriate handling of stripped sods by inexperienced machinery operators, or prolonged drought conditions immediately following relocation. Change in plant species composition has occurred where clumps of vegetation are too far apart, or shifted plants were too small - in both cases invasive weeds have smothered the original vegetation. Changes in hydrology can also have significant impacts. Our experience indicates that the advantages of direct transfer far outweigh the disadvantages and is now used as the preferred restoration method, where practicable, at mines where it has been trialled.

Jan 1, 2000

By W. C. Phalen

The production of salt in the United States divides itself at the outset into two distinct classes…

Jan 1, 1915

By Pablo González, Rodolfo Espinosa, Jose-Luis Noyola, Sergio Cossio

"Minera Penmont, at La Herradura, is a joint venture between Industrias Peñoles, S.A. de C.V., and Newmont Mining Corporation. The mine is located in the northern Mexican state of Sonora. La Herradura consists of an open pit mine with two-stage crushing and heap leaching facility, the gold is recovered from the pregnant solution using the Merrill-Crowe process; production began in July 1998. La Herradura produces about 130,000 gold ounces per year, and treatment capacity is 22,000 tonnes/day. Ore mineralization occurs in a shear zone with quartz and native gold. Gold distribution is quite heterogeneous due to the coarse visible gold, in some coarser particles ranging from 100 to 600 microns.Sampling and assaying protocols where established during exploration and prior to starting up operations, based on nomographs developed from early heterogeneity tests. But, as the coarse gold problem became noticeable, it was necessary to develop new sampling protocols to have an acceptable relative standard deviation to control the fundamental error within ± 15%.An experimental program was developed and conducted on a selected ore block made of 195 blastholes; regular ore grade control procedures were applied to both sets of data to evaluate the difference in results between the protocol established prior to starting up operations (“existing”) and the new protocol (“leaching”). In the “existing” protocol, subsampling is done through riffle splitters, and coning and quartering. Fire assaying is used to estimate the gold content, on a 50 g sample. In the “leaching” protocol a 12,000 g sample was bottle rolled cyanide leached, and the leach residue was assayed on a 50 g sample using fire assaying, and a weighted average total gold content was calculated. Currently, a new alternative method is being evaluated, where sub-sampling is done using rotary splitters, and fire assay on a 50 g sample; in this “rotary sampling” protocol and for comparison purposes, gold assays were also repeated using the “leaching” protocol.Test results were compared in three groups < 0.30 g/t (below cut-off), 0.30 to 0.8 g/t, and >0.8 g/t. Overall. Results show that the protocol established prior to starting up operations underestimates the gold assays. Detailed technical results, alternative options, and their implications are discussed in the paper."

Jan 1, 2003

By S. Cossio, J. L. Noyola, R. Espinosa

"Minera Penmont’s La Herradura is a joint venture between Industrias Peñoles, S.A. de C.V. and Newmont Mining Corporation. The mine is located in the northern Mexican state of Sonora. La Herradura consists of an open pit mine with a two-stage crushing plant and heap leaching facility. Gold is recovered from the pregnant solution using the Merrill-Crowe process; production began in July 1998. La Herradura produces about 130 000 oz gold per year and its treatment capacity is approximately 22 000 t/d. Ore mineralization occurs in a shear zone with quartz and native gold. Gold distribution is quite heterogeneous due to coarse visible gold, which in some cases ranges from 100 to 600 microns.Sampling and assaying protocols were established during exploration and prior to start-up of operations, based on nomographs developed from early heterogeneity tests. However, as the coarse gold problem became noticeable, it was necessary to develop new sampling protocols to have an acceptable relative standard deviation to control the fundamental error within ± 15%.An experimental program was developed and conducted on a selected ore block consisting of 195 blastholes; regular ore grade control procedures were applied to both sets of data to evaluate the difference in results between the protocol established prior to start-up of operations (existing) and the new protocol (leaching). In the existing protocol, sub-sampling is done through riffle splitters, and coning and quartering. Fire assaying was used to estimate the gold content on a 50 g sample. In the leaching protocol, a 12 000 g sample of bottle-rolled cyanide was leached, and the leach residue was assayed on a 50 g sample using fire assaying, and a weighted average total gold content was calculated. Currently, a new alternative method is being evaluated, where sub-sampling is done using rotary splitters, and fire assay on a 50 g sample; in this rotary sampling protocol and for comparison purposes, gold assays were also repeated using the leaching protocol.Test results were compared in three groups: < 0.3 g/t (below cut-off), 0.3 to 0.8 g/t, and >0.8 g/t. Overall, results show that the protocol established prior to start-up of operations underestimates the gold assays. Detailed technical results, alternative options, and their implications are discussed in the paper."

Jan 1, 2004

The Misima open pit gold mine is a 20Mt per annum operation. Blasthole drilling is used to sample all material at a uniform 5m square pattern, and representative sub- sampling of the blast holes enables assay samples to be collected over the full 10m bench height. Samples are assayed for gold, silver and copper at the Company&apos;s laboratory at the mine site and the assays are provided to geologists as a written assay report and on floppy disc. Surveyed blasthole locations and assay results are transferred via personal computers (PCs) to a SUN mini-computer where results are stored by bench, blasthole assays are kriged, and plot files are created. A geologist selects grade boundaries from the kriged data, adjusting the boundaries towards the raw blasthole data where hard boundaries are recognised. Surveyors peg the resultant boundaries in the pit using a system of colour-coded pegs to display the different material types. A daily plan also shows boundaries and face positions.

Jan 1, 1991

The following notes apply more especially to the purchase of silverlead ores produced in the neighbourhood of Zeehan and Dundas; for it is this class of ore that is principally mined in those parts, and which creates competition among the ore buyers.In the early days of this field, most of the ore passed through the hands of the first buyer who had sufficient enterprise to establish himself at Zeehan but in more recent times, competition has been so keen that there are generally three or four buyers tendering. lf the output was large this would not matter so much from the buyers&apos; point of view but when we consider that the output of the field is only some 1,650 tons per month, and that of this 70 odd tons are produced by the Western and Montana mines, aud being sent home for realization, is withdrawn from local purchasers, there is really not enough for four buyers, especially at the present exorbitant prices they pay the miners.Some of the mines have a fixed sampling day, on which it is tacitly understood that the ore buyers will attend. Others, such as Grubb&apos;s Silver Mining Oompany, No-Liability, send round a printed reminder, stating the quantity of ore, and the date of sampling.

By S C. Dominy

Various styles of gold mineralisation pose problems during sampling because of their complex gold grade distribution and presence of coarse gold. Effective sampling and sample preparation forms the basis of resource estimates. The design of a sampling and assaying protocol must be based on a thorough understanding of the mineralisation in question, which should include consideration of gold particle size and mass distribution. The proportion of coarse gold within samples has a profound effect on the requirements for sample preparation and assaying. Choice of preparation procedure and assay type is of critical importance if sampling errors are to be minimised. Traditional fire assays, using small charge sizes, often understate assays gained from large charge sizes and techniques such as screen fire assay and LeachWELL. Proper application of the Theory of Sampling reduces errors during collection, preparation and assaying. A quality control/quality assurance program must be implemented and critically assessed. A case study from the Ballarat mine is presented, which is characterised by substantial quantities of coarse-gold hosted in quartz veins. Diamond core drilling is the key input into resource delineation. A number of different sampling and assay options have been trialled over the recent project history. The current sampling protocol utilises whole drill core, using LeachWELL assays after logging and photography.CITATION:Dominy, S C, 2017. Sampling coarse gold-bearing mineralisation – developing effective protocols and a case study from the Ballarat mine, Australia, in Proceedings Eighth World Conference on Sampling and Blending , pp 71–84 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

Although not fully accepted in South Africa, the Theory of Sampling originally proposed by Pierre Gy is fast becoming the cornerstone of sampling practice throughout the world. The growing acceptance of Gy?s Theory of Sampling in South Africa can be attributed to a number of factors, chief amongst them being the development of a tradable mineral asset market, the promulgation of the Mineral and Petroleum Resources Development Act (MPRDA), the growing number of commercial and academic courses that are offered on sampling, and the regulation of the industry through internationally acceptable guidelines and rules for reporting and trading in mineral assets. The size of the South African minerals industry and the dependence of our economy on mineral production have also meant that correct sampling is of key importance to mineral trade. ISO standards have been the principal guides for producers of mineral bulk commodities who produce to customers? specifications, whereas Gy?s insights have been most readily accepted by precious and base metals producers whose product is sold into metal markets. Understanding of small-scale variability is essential in the precious and base-metal industries, but detailed studies of the effects of heterogeneity have not been as productive in the bulk commodities. Sampling practices at different stages of mineral development from exploration, face sampling and grade control, ore processing and handling, metallurgical sub-sampling, point of sale sampling, and sampling in the laboratory are considered in the gold, platinum, ferrous metal, and coal industries. A summary of the impact of poor sampling in these industries is presented. Generally it appears that poor sampling practice is most likely to erode mineral asset value at the early stages of mineral development. The benefits of good sampling are considered, especially with regard to the financial implications of bias and error on large and consistent consignments of bulk commodities. Keywords theory of sampling, sampling errors, ISO standards.

Jan 1, 2014

A wide range of drill holes and process streams are sampled for resource estimation, grade control, and contractual purposes in the minerals industry. However, despite the availability of training courses, conferences and both national and international standards on correct sampling practices, it is still surprising how often little attention is given to ensuring that representative samples are collected for analysis. The reason for this is that the responsibility for sampling is often entrusted to personnel who do not appreciate the significance and importance of sampling, with cost being the main driving force rather than whether the sample is representative of the material from which it was extracted. This seriously undermines the precision and accuracy of the analyses subsequently generated and can render the analysis process a total waste of time and money and expose mining companies to serious, potential, financial losses. Company management needs to reverse this situation and ensure that sampling is given the attention it deserves to generate representative samples for analysis.

Jan 1, 2010

By P. E. Hand

Coal is a complex heterogeneous commodity that can be mined in a number of ways and needs to be processed to a homogeneous quality that satisfies the customer?s requirements, while attempting to maximize revenues. Only a small proportion of coal is suitable for metallurgical use. Export coals cover a wide range of qualities and some coals can be used optimally in the raw state for energy production. Critical quality parameters vary and can be a combination of heat value, ash, volatiles, sulphur, phosphorus, sizing, amongst others. The level of beneficiation is generally dictated by the washability of the coal, mining contamination, and the target product quality. The steps in the coal chain covered in this paper comprise exploration, mining selections, production, the washing process, and product delivery. Many points of sampling are needed to maximize yield at the correct quality, and some of these will be described in the paper. Keywords coal chain, coal beneficiation, sampling.

Jan 1, 2014

The simple act of taking a sample implies that someone will use the information contained in the analytical result to make a decision about a course of action. In the mining industry, the decisions may involve huge capital commitments for opening or closing a mine, or marginal tactical costs that involve deciding if a truckload of mineralized rock should be sent to the mill for processing, or the waste dump. Sampling is among the most fundamental activities in a mining operation, and this paper aims to examine some of the technical issues that can assist in ensuring that samples are representative and correct. Insights into the scale of variability require that we disaggregate sampling variance into its component parts and evaluate each one individually. The work of Pierre Gy in understanding the different sampling errors is the first step in establishing an optimal protocol. This must be followed by the appropriate measures to ensure the protocol is implemented such that minimal bias is introduced in the sampling process. Even with these insights the possibility exists for large unseen and hidden costs can accumulate in a mineral development because of sampling errors. These hidden costs arise due to misunderstanding of the principle factors that affect the size of sampling errors, such as the mass of the sample, the effects of splitting a sample to reduce the mass, and the influence of the nominal particle size. The handling of sample material without due regard to the sampling characteristics of the material being sampled is also a major source of sampling errors. The most significant problem is due to the influence of the so-called volume-variance effect. This effect is a consequence of the support effect and the information effect both of which relate to the difference in size at which samples are collected and mining blocks are extracted. The information effect is a function of the availability of data at the time that decisions are made about the destinations of mineralized rock, namely the mill or the waste dump. Implementation of appropriate sampling protocols in the mineral value chain remains a challenge throughout the industry. The growing understanding and deepening appreciation of sampling theory and methods means we stand on the threshold of a new era for implementing and understanding appropriate sampling procedures and protocols. In the interests of optimal development of the national patrimony it is suggested that standardization through the identification of structural problems and continuous improvement of mining processes be instituted at a national level.

Jan 1, 2007

By Rick Wright, Gregory L. Raines

San Diego’s need to access underground space has dictated a long history of tunnel construction. The subsequent need for water, coupled with San Diego’s natural attractiveness, has led to significant population increases and the need for the construction of even more tunnels. This paper will provide a historical summary of the progression of mines, tunnels and trenchless technology construction projects that contributed to the advance of current technology, feasibility, and constructability. A bibliography of relevant reports and data is included.

Jan 1, 2001

By Matthew E. Fowler

The Central Subway will extend the recently completed 8.2-km long Third Street Light Rail line another 2.7 km north through the Union Square shopping district to Chinatown with a concourse-to-concourse connection to the Powell Street BART Station. One mined and two cut-and-cover subway stations are planned. Particular challenges include: tunneling under existing tunnels; variable ground conditions ranging from saturated alluvium to fractured bedrock; a congested urban setting and large-span caverns. This paper gives an overview of the project as it stands midway through the preliminary engineering stage along with a discussion of the rationale and design approaches that are being used to address the construction challenges of restoring light rail service in the most densely developed areas of San Francisco.

Jan 1, 2008

By Brett Campbell

The San Vicente to 2nd Aqueduct Pipeline?Tunnel project is a raw water conveyance tunnel linking the San Vicente Reservoir (SVR) to the 2nd Aqueduct Pipeline via Rancho Penasquitos Pressure Control Facility (RPPCF). This 58,230 lf long tunnel will be 8.5? final ID, and has four points of construction access. The job is classified into 6 Reaches of tunnel, identified by the dominant geology within the reach. This paper will focus on Reach 3, specifically the measures necessary to drill and blast a 550 lineal foot section of granitic rock tunnel immediately in front of an open face digger shield.

Jan 1, 2008

By A. Holeyman

The displacement compaction piles described in the paper are installed using a heavy casing or tube and an internal drop hammer. The casing which initially is closed at the bottom by a sand plug displaces the surrounding soil during the driving. Additional sand is rammed down through the casing during the extraction of the casing. The applications and limitations of the method are reviewed in the paper. The importance of checking the sand compaction piles during and after the installation is stressed. Indications of the compaction of the surrounding soil during the driving can be obtained by comparing the initial and the redriving logs of the casing as well as from the volume of sand added. A method to estimate the increase of the mean cone resistance as measured by CPT tests in sandy and silty soils is presented. The governing parameters are the volume of the added sand, the granulometric index and the initial cone resistance.

Jan 1, 2010

By S. Marx

More than twenty years ago Sasol, ISCOR, and some parastatals played a major role in ensuring that South Africa had sufficient technical skills. When the economy became tight and business and government were pressurized to decrease costs, the first budgets that were reduced were the training budgets. It seemed to be too expensive and too time-consuming to train apprentices. According to Stacey2, this is a major strategic issue facing the mining industry in South Africa. Two factors added to the shortage of skills challenge: ? Skills erosion and job losses ? Artisans ? currently the economy produces 5 000 but the need is 12 500 ? Level of mechanization in South Africa less than 10 per cent ? Average age of operators and artisans is 50 ? Greater awareness of occupational health effects of hand-held drilling. ? Workplace challenges ? The impact of HIV/AIDS and other employee wellness issues ? Changes and challenges in workplace environment i.e. the mining industry.

Jan 1, 2012

The Sandvik DE710 diamond core drill has become one of the most popular exploration drills available. It is operated on exploration and mining projects in locations around the world. The compact nature of the DE710 allows a small footprint on site. This has proven to be a great benefit in difficult access areas where site preparation can be limited. The DE710 drill is available in a range of con-figurations to suit global operational and environ-mental demands. It can be truck-mounted for greater maneuverability and ease of relocating the drill between sites. The drill can also be fitted to crawler tracks, powered from the rig hydraulic system, making it a small, self-propelled unit for areas with difficult site access. And the DE710 is available in a shack-mounted configuration for cold weather applications, ensuring a protected working environment for the drill crew. The DE710 is powered by a 6.7-liter engine that produces 141 kW (190 hp) at 2,200 rpm to power the rig hydraulic system. The engine complies with the Tier 3 emissions standards that are being introduced in many countries. The hydraulic system design for the Sandvik DE710 is based on the company?s philosophy of selecting the best available products to suit the application. The main hydraulic pumps and motors are the variable displacement design. This allows for greater fl exibility and precise control of critical drilling functions. The cooling system has also been designed for operation in ambient temperatures up to 50° C (122° F) to cope with varying global operational demands.

Jan 1, 2009