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By Daniel T. Brian, O&apos

Exploration targets and results in the mining industry are commonly summarized in terms of tonnage and grade. Business appraisals require, as additional information, the expected profit or loss implied by the physical summay. The early incorporation of knowledge gained through financial analysis computations can provide a means for economically resolving many common exploration and development problems. Examples of such applications from the activities of exploration planning, reconnaissance, land acquisition, and development planning are presented. While prospecting for mineral deposits, geologists are frequently asked what they hope to find or have found. The response is usually descriptive, such as "50 million tons of 1% copper," and the economic implications are deferred until a capital investment decision is required. At that time, a financial analysis integrating the four analysis components is completed. These components are: 1) Tonnage and Average grade above cutoff grade 2) Capital and operating costs 3) Product value 4) Appropriate profit or loss accounting Close examination of these components reveals that there is no intrinsic reason for avoiding financial analyses at earlier stages in exploration, as long as the uncertainty of the estimate is realized. Tonnage and average grades are commonly estimated at early stages in exploration. For this component, the appropriate cutoff is the major uncertainty. Capital and operating costs are difficult to estimate before detailed quantitative information is available, but estimates useful for the types of applications pertinent to earlier exploration stages are possible. Product value estimates may or may not be difficult, depending on the pricing structure of the particular commodity. A simplified accounting procedure usually may be adopted without introducing any significant loss of validity. This paper describe some of the financial analysis applications which are pertinent during mineral exploration and deposit development. These applications lend additional insight during exploration planning, land acquisition, physical exploration, and development. The examples are oriented toward a hypothetical management investment policy which is based on a single criterion, a minimum 15% discounted cash flow rate of return. In reality, managements use multiple criteria. This simplification is convenient for purposes of presentation and does not invalidate the examples. Computers are useful, but not a requirement, for the applications described. The use of computers provides the results on a more timely basis at costs lower than equivalent manual computations. UNDERLYING PRINCIPLES AND ANALYSIS METHODS Data estimates are subject to uncertainty. The analyst may choose to assess this uncertainty by using one of two principles. Each principle has some advantages. The principle most commonly employed is "assumed certainty." Each financial analysis is based on one set of selected data, which may represent the average estimates, minimum expected conditions, etc. The critical data is identified by making successive calculations, varying the values used. Such studies, called sensitivity analyses, isolate the economic effect of various uncertainties, and guide the allocation of future efforts toward improving the overall accuracy of the analysis. A second principle, "assumed risk," examines the interactive effect of the current uncertainties by qualitatively assigning probability distributions to each data element. These probability distributions indicate the currently appraised chance that a given numerical value will prove to be true. The corresponding procedure, risk analysis, consists of processing many individual financial analyses, each analysis being based on randomly selected numerical values from the probabilistic distributions. The result is a numerical presentation of the uncertainty, but care must be exercised in the interpretation of results. The advantage of this procedure is the direct measurement of economic uncertainty caused by the interaction of uncertain estimates. Kennecott Copper Corp. has developed computer systems for accomplishing sensitivity and risk analyses.

Jan 1, 1970

By Mikhail P. Nesterov

The paper presents the results of the research that can forecast the development of subsidences and deformations of the earth surface with time in the permanent marginal areas of the movement troughs arising when mining sylvinite beds in the Upper Kama deposit of potash ores where the rock formation support is made by means of interchamber (rib) pillars of various yieldability.

Jan 1, 1997

By Marc C. Bétournay

Over the last four years, an international initiative, championed by Vehicle Projects LLC, the Fuelcell Propulsion Institute and Natural Resources Canada, has been active in carrying out research projects to prove out the concept of applying fuelcell technology to underground mining vehicles. These have been carried out by a consortium consisting of mining companies, equipment manufacturers, technology developers, national laboratories and consultants, with the participation of Canadian and U.S. mine regulatory agencies. This clean technology, which produces only water and electricity, would allow several advantages to be obtained, in the health area (by eliminating diesel emissions and reducing noise generation), in lowering production costs (such as reducing ventilation required) and lowering green house gas emissions. This article outlines the results obtained in several key areas, such as the operation of fuelcells in underground conditions, risk issues related to underground and surface operation of hydrogen vehicles and hydrogen production and delivery systems, and the design and mining performance of the world?s first hydrogen mining vehicle, a mine production locomotive. The work to date on the fuelcell loader, designing the power plant and power transmission systems, operational requirements, and operating cost reductions, is also presented. There is also an evaluation of the overall mining applications and advantages this technology can bring to underground mining, including the facilitation of automation and tele-remote operation.

May 1, 2003

By D. G. Krige

For the purpose of determining confidence limits for ore grade estimates, an extensive simulated database was used, which included 1728 ore blocks with ?actual? grades and the corresponding estimates based on ordinary and simple kriging. The practical results show that conditional unbiasedness is essential and that acceptable confidence limits can then be set using Normal theory for the simulated error distribution based on the logarithms of the ratios of ?actuals?/estimates with a variance related to the kriging variance. The mean of the data used to prepare the variogram and the estimated block grade are to be used properly in this approach. A practical analysis was also done of the actual point and block data from a very large mined out Carbon Leader area. The distributions of the actual grades for two levels of block sizes with different levels of variability were fitted using three models, ie. two three and compound lognormal. The trends of tonnages, grades and relative profits for a range of pay limits, as well as the usual tonnage-grade curves, show a practical insensitivity for the choice between the three lognormal models considered.

Jan 1, 2004

By J. J. Snodgrass

Faults, sandstone channels, and abandoned mine workings present severe safety hazards, disrupt mining, and necessitate costly precautions or discontinuance of operations. In addition to fault detection, mining companies have a need to map discontinuities such as seam thinning and previously mined areas in both longwall and room-and-pillar operations. Initial field tests demonstrated successful generation and propagation of higher order guided wave modes. Theoretical studies indicate potential for improved resolution by sensing small details in the coal seam and roof structure. Controlled-waveform source transducers and specialized detectors are particularly useful to preferentially excite and detect the Love (SH) and Rayleigh-type (P-SV) waves, including the higher frequency modes. The distinct observation of reflections using the transducers in the shear wave mode makes feasible the detection of the water-filled voids.

Jan 4, 1985

By J V. Lawless

Mineralisation processes in epithermal deposits in the North Island of New Zealand are best illustrated by considering the two most productive deposits: Waihi and the Thames Bonanza Zone (TBZ), which have different mineralogies and ore shoots geometries. These two deposits can be taken as typical of certain styles of epithermal deposits worldwide, and recognition of their differences can be used to develop mineralisation models of predictive value. Waihi, the major economic producer in the Coromandel Volcanic Zone (CVZ), has laterally near-continuous ore shoots over a vertical interval of 600 m which consist of quartz, chalcedony, pyrite, base metal sulphides and electrum. They are found in the foot wall of earlier quartz veins which contain quartz pseudomorphs after platy calcite and adularia. The Thames Bonanza Zone which was the second biggest producer in the CVZ has discrete near-vertical ore shoots over 300 m vertically, which consist of quartz, pyrite, base metal sulphides, electrum and in their upper parts barite, that are enclosed in veins of quartz.   The gold mineralisation in both deposits is considered to be a co-precipitate with pyrite, with that at Waihi produced by prolonged boiling in an upflow of a hydrothermal system. That at the TBZ was produced by mixing a deep water primed for gold deposition by prior limited boiling, with an oxidised condensate of the steam released by the boiling, in an outflow proximal to the system's upflow.

Jan 1, 1997

By Vincent A. Scovazzo

Benchmarking is a business management process that seeks improvement through the study and reapplication of practices conducted by industry leaders. This discussion presents objectives and organization of benchmarking applied to mining geomechanics. Similar procedures have been successfully applied to mining companies, laboratories, and research organizations involved in mining geomechanics throughout the world. Benchmarking is a structured process that allows an organization to learn from the "best" in the field. The objectives of benchmarking vary depending on the company's targeted areas for improvements. Typical goals include ground control cost reduction, enhanced safety, optimization of geotechnical staffing, development of state-of-the-art design procedures, or the adoption of the "best in the field" geotechnical data management. Once the objective of the study is established and the practices and procedures to be benchmarked are identified, a benchmarking team is formed from internal and outside specialists. Benchmarking in geomechanics is fundamentally different than in most other fields because of the effects of local geologic conditions and regulations, both of which must be understood by all on the benchmarking team, before a comparative analysis can be made.

Jan 1, 2000

By W. K. Callaway

The need to increase ore recovery and pillar stability caused the Magmont Mine staff to investigate the use of sandfill to accomplish both tasks. The use of hydraulically stowed classified mill tailings as a subsidence preventative will be discussed as well as the use of sandfill in pillar recovery and as a part of the regular mining cycle.

Jan 1, 1986

By Carnevale Francesco, Bracci Laudiero Alberto, Pampanin Piero

"SummaryIn the Port of Naples a slurry wall has been realized through a sandy layer up to a deep tuff layer using the Cutting Soil Mixing technique.The executed panels have dimensions of 2.8 m x0.65 m in plan and a total length of 25 m. Primary and secondary panels have been executed using the wet to wet technique. During the panels execution the following parameters had been measured: injection pressure, injected volume, verticality. At the end of the works an exploratory campaign has been carried out through boreholes collecting samples for laboratory tests in order to verify the diaphragm thickness and its physical and mechanical properties (i.e. unit weight, unconfined compressive strength).The interpretation of the collected data allowed to verify the efficiency of the method, the volume of slurry loss due to permeation during the panels execution, the quantity of the obtained spoil compared to the volume balance equation, both for the sand and the tuff layer.Eventually, the measured physical and mechanical characteristics of the panels have been correlated to the execution method performed.IntroductionIn the Naples Port area there is a polluted site which has to be hydraulically isolated in order to prevent the pollution of the groundwater that flows from land to the sea through the Port area. A hydraulic cut-off wall has to be realized and particularly a slurry-wall realized using the CSM method had been executed.To date, two stretches have been executed, 140 an 110 m in length respectively, as shown in Figure 1 and Figure 2.After execution, the slurry-walls have been investigated with boreholes. In-situ and laboratory tests on the recovered samples of grout have been carried out; furthermore, the geotechnical parameters of the mix composing the wall have been measured."

Jan 1, 2014

The C.S.I.R.O. acid alumina process employs the essential steps of digestion, hydrolysis and calcination to produce pure alumina from ores too high in silica or too low in grade for the Bayer process. The two latter stages have been described in some detail previously but the digestion stage requires separate discussion since ores vary widely in composition and reactivity. Kaolinitic clays require roasting to 800°C to render the alumina soluble in the 11 per cent sulphuric acid used in the process while some ferruginous laterites require roasting to reduce the reactivity of iron minerals.The iron content of pregnant solutions is kept at a low figure by digesting at temperatures where the solubilities of ferric oxide or basic ferric sulphates are small. A two-stage, counter-current digestion is necessary to extract a high percentage of alumina from the ores and to produce a basic pregnant liquor with an SO3 : AI 203 ratio of 1'\1 suitable for high temperature hydrolysis. The second stage of digestion, called the modification stage, treats slightly acid liquors with excess of ore in the temperature range 1200-1400C.The first stage operates at 170°-1900C to extract further alumina from modification residues, using recycled acid obtained from later steps of the process. Both temperature ranges are critical for economic operation and for proper control of the iron content of solutions. In batch experiments, 30 min is regarded as a suitable retention time for digestion and modification; ores which require much longer than this are less suitable for the process. Impurities such as silica, and titanium and vanadium oxides are discarded in the residue along with iron oxide, and do not contaminate the final product. Bivalent metallic sulphates such as MgSO4, can build up in the circuit to a very considerable degree without affecting product purity.Comparison with other processes shows that the C.S.I.R.O. process is superior for control of contamination by iron, which is the major problem in acid processes. The pure intermediate product (3Al203.4S03.9H20) is also more convenient for calcination to alumina than the hydrated aluminium sulphate usually recovered in other processes. Detailed cost comparisons must await pilot-plant evaluation of the C.S.LR.O process.

Jan 1, 1964

By Steve Kral

Mining is a risky business. The cost of exploring for new mineral deposits is high and the success rate of finding one worthy of development is relatively low. And once a deposit is identified, there is no guarantee that it will become a mine. Mining companies have to spend a lot of time and money on due diligence, prefeasibility and feasibility studies, and sustainable development and environmental issues before deciding whether the deposit will become a profitable mine. And then there are the millions of dollars spent in developing the deposit and building a mine. No wonder the mining industry has trouble attracting investment capital. Companies take a large risk in developing reserves and investors take a similar risk in investing in them. So mining companies must be as accurate as possible in determining mineralization that makes it to reserve status. After all, reserves are a company’s most important asset and one of the critical factors analysts and funding sources look at when determining if a mine or mining company is worth the risk.

Jan 1, 2003

By Pooley F. D

The coal measures of the South Wales coalfield contain at least 50 horizons at which coal seams are known, to occur. More than 300 samples of coal were collected from these coal measures and this paper outlines thefindings of an investigation of the pattern and distribution of 12 trace elements in South Wales coals. A comparison of trace element contents of the South Wales coals is made with trace element values found elsewhereand an attempt was made to establish the organic affinity of the elements in different seams and in the coalfield 'as a whole. An important function of such an analysis is to determine the order of abundance of trace elements and this was performed for individual seams and for the whole coalfield.The interrelationship of certain elements in some seams is also examined with a view to understanding the effectiveness of such an approach to seam correlation.Ranges of values are quoted together with the mean values of the various elements. Variations of elemental values within a seam section and over the coalfield as a whole are discussed.

Jan 1, 1977

By S. Kitamura

In recent years, the amount of ferritic stainless steel production has increased. However, the rust formation by the salt spray test was pointed out in the past. At the centre of the circular rust zone, pitting corrosion where water-soluble nonmetallic inclusions were embedded was observed. These inclusions originated from the suspended refining slag and consisted of multi-phase oxides and sulphides. By the experiments and thermodynamic consideration of the water-solubility, not only CaO or CaS, but also lime rich calcium-aluminates or calcium-silicates have shown large water-solubility. The composition of oxide phase in the inclusions was almost the same among the samples from molten steel, slab, or cold rolled sheet. On the contrary, CaS was clearly observed around the oxide in the sample of cold rolled sheet, although it was not found in the molten steel or slab samples. The enrichment of sulphur occurred from the desulphurization reaction of the suspended slag particles in the molten steel and also occurred from the diffusion of sulphur to the oxide inclusions during the heating of the slab. The optimization of refining slag composition has lead to produce the ferritic stainless steel without rust formation. Keywords: stainless steel, rust, calcium aluminates, calcium sulphides, water-solubility, refining slag, composition control of inclusions.

By C. C. Anderson

"While conducting investigations in connection with the helium program of the Bureau of Mines, the Cryogenic Laboratory has improved an apparatus for the rapid and accurate determination of the helium content of natural gas and gaseous mixtures derived from that source. The separation of helium is effected by the use of activated coconut charcoal which, when cooled to liquid-air temperatures, absorbs the nitrogen and other constituents of the gas, leaving the helium in a. spectroscopically pure state. This absorptive property of activated charcoal was discovered- by Dewar3/ in 1875. Several years later, while conducting their original researches on helium in natural gas, Cady and McFarland employed the charcoal method for the absorption and removal of the common constituents of natural gas and constructed an efficient apparatus in which this operation could be effected.4/ Shortly after initiating the government's helium activities during the World War period, the Bureau of Mines adopted, with Minor modifications, the Cady and McFarland apparatus and method of analysis. Seibel.5./ described this modified apparatus and method of procedure as part of a publication on helium-bearing natural gas. Subsequently, the Bureau's apparatus for helium analysis has been simplified and improved to facilitate more rapid and positive operation. The apparatus and method of procedure now being used by the Bureau of Mines Cryogenic Laboratory arc described in this paper.The personnel of the Bureau of Mines Cryogenic Laboratory has improved and brought the helium apparatus described herein to its present state of perfection. The writer's contributions have been-of minor importance, and he wishes to give the various members and former members of the laboratory staff full credit for the improvements they have made. He also desires to express his appreciation for suggestions and criticisms offered during the preparation of this paper to the following members of the Petroleum and Natural Gas Division, Bureau of Mines, which now includes the Amarillo Helium Plant and Cryogenic Laboratory: H. A. Cattell, chief engineer; C. W. Seibel, supervising engineer of the Amarillo Helium Plant; W. M. Deaton, chemist-in-charge of the Cryogenic Laboratory; and H. S. Kennedy.The quantitative determination of helium in a gaseous mixture is accomplished by the removal of the other constituents from the sample, either by chemical or physical Means, leaving only the helium which can be measured directly. Chemical methods, when applied to natural gas, require the burning of the hydrocarbons in oxygen, the, absorption of the resulting carbon dioxide in a caustic solution, the removal of the excess oxygen in a suitable solution such as an alkaline pyrogallate, and the elimination of nitrogen by sparking or by combination with hot calcium or magnesium.. Such procedures are very slow and tedious compared with the physical method which employs the absorptive property of activated charcoal to effect the separation of the other constituents from the helium."

Jun 1, 1934

By R. Heuberger

South Africa?s Mining Industry operates in an uncertain world. The industry is buffeted by problems regarding retrenchments, unemployment, low productivity, rising costs, volatile exchange rates, commodity prices and government regulations. With these uncertainties facing the decision makers, what does applied technology offer the industry?s management? Modelling languages with risk analysis have been available for decades, but in the past their use has been very expensive, requiring large mainframe computers and lots of computer time. Today, PCs and laptops have incredible power, which makes interactive risk analysis affordable and viable for all enterprises, whether small or large. ?What is risk analysis? ?What is Monte Carlo simulation? ?What kinds of computer models need to be created to use risk analysis and Monte Carlo simulation effectively? This paper addresses these questions and illustrates, with a practical example in the mining industry, how risk analysis techniques can be used to support decisions in the climate of uncertainty.

Jan 1, 2005

By Maurizio Siepi, Stefano Trevisani, Pagliaccim Federico, Daniele Vanni

"Abstract: The paper describes a large innovative project completed in 2012-20123 by Trevi Group, to develop equipment capable to install ultra-deep diaphragm wall. The project highlights the capacity of SOILMEC to design and build a new hydromill able to reach an unprecedented depth of 250 m, including new devices for monitoring and correct the verticality. The entire project can take advantage of the long and solid experience matured by Trevi and Rodio (now part of Trevi Group), developing in house or, else, select the elements necessary for a high quality product in the ground.The paper describes the results of different systems used to monitor and control the verticality and the twist of panel during excavation, together with the method used to pour concrete. Finally, the results of verification coring and lab tests on concrete samples recovered at various depths are discussed. The test field has been supervised by representatives of three of the major Italian Universities, and lasts almost one year from August 2012 to June 2013.The verification holes made use of an innovative combination of directional drilling and coring, to check the quality of the plastic concrete for the full length of the panel. The data confirmed that the test panel has high quality concrete, meeting or exceeding to the prefixed requirements.With this test, super-deep cut-off walls reaching depths of 250 m have become a reality. This would change the perspectives of dam engineering both for existing dams rehabilitation and for new dams design and construction. With the execution of this test panel, the technology of milled concrete cutoffs has made a ”quantum leap”, pushing the limit of practicable dams."

Jan 1, 2014

By G. Montes-Atenas

Throughout the years, research studies have reached a consensus in acknowledging the relevancy of surface chemistry phenomena on minerals separation and metals extraction. Many techniques, and notably, scanning electron microscope-based technologies have revolutionised the entire mineral processing industry. Nevertheless, the comprehensive understanding on how surface chemistry properties influence the performance of many processes involving ores is still a challenge, a matter of controversy. The latter is mainly due to the fact that all interfacial processes do not necessarily require stoichiometric and well defined atomic structures. This is particularly true in the case of sulphide minerals which are well known to be superficially unstable in aerated media. When trying to measure any variable related to mineral-mineral or mineral-aqueous solution interfaces, there are too many unknowns regarding how sensitive the interface is when facing sampling protocols and sample handling. The aim of this research work is to make a case for improving future concentrators? survey protocols. It suggests a methodology to study effectively chemical changes at the outmost mineral surface layer at different stages of a mineral processing operation. The sampling protocol and sample handling is presented in details and it is applied to the regrinding stage of an industrial plant.

Feb 27, 2013

By D. P. Penswick

The Palabora open pit is scheduled to cease operations in 2002. While the ore body continues below the bottom of the final pit shell, the stripping ratio precludes further economic open pit mining. Palabora Mining Company has investigated various means of continuing copper production, and has determined that an underground mine is the best solution. Board approval to commence construction of the mine has been granted and shaft sinking is underway. First production is planned for the year 2000 and full production of 30 000 t/d will be achieved by the end of the year 2002. [ ] Mechanised block caving will be the mining method employed at Palabora. The cave will be initiated by excavating a thin horizontal slice known as the undercut. Removal of the undercut will induce stresses which cause the rockmass overhead to fracture. Fractured rock will gravitate through drawbells to drawpoints on the production level, and be loaded by LHDs for transport to crushers.

Jan 1, 1997

By R. H. Widmyer, G. M. Wood

This investigation was prompted by the absence of a simple, accurate method to predict optimum second stage separation pressure in three stage separation operations. Three stage separation as used here includes two separators plus the stock tank. The first stage pressure is usually fixed by gas sales conditions and the third stage is at atmospheric pressure. Thus, the second stage pressure is the only one that may be varied in-discriminantly during production operations. No variations in temperature were considered in this study, even though it will vary among systems, for a change in temperature has little effect on the optimum pressure. Optimum pressures may be determined from flash calculations, but these are tedious unless a computer is available. An early attempt to develop a simpler method&apos; yielded an equation which gave the optimum pressure only as a function of initial and final pressure. Experience, however, confirms theoretical relationships which show that composition as well as pressure and temperature must be a factor. This indicates that the basic relationship should be an equation of the form, where P, is second stage pressure, P, is first stage pressure, A is a function of P. (stock-tank pressure) and the system composition, and n is a function of the number of stages and the system composition. Fig. 1 shows the basic variation of P2 with P for a fixed system composition. A series of such figures clearly showed the effect of composition. The peak of each curve reflects that second stage pressure at which the stock-tank recovery (gal/MMcf) residue gas is a maximum value. DEVELOPMENT OF NEW CORRELATION Wellstreams having 17 different analyses, ranging from low gravity crude to condensate, were used to determine the effect of composition. Each wellstream was flashed through three stages to determine the optimum second stage pressure for each first stage pressure. Equilibrium vaporization ratios proposed by Latham and Campbell were used throughout. The heptane plus fraction, for simplicity, was assumed to have the properties of octane. The results were subjected to an empirical analysis in an attempt to develop a correlation- that would be (1) simple, (2) accurate, and (3) eliminate the need for any flash vaporization calculations. This analysis yielded two equations, one for wellstreams having a specific gravity greater than one (air = 1.0) and one for those less than one. For crude streams (specific gravFor condensate (specific gravity < 1.0),

By J R. Lang, J K. Mortensen

The Canadian Cordillera contains numerous classic porphyry deposits and several unusual subtypes, including the alkaline suite of porphyry Cu-Au deposits and the Tombstone magmatic suite and associated Au¦W deposits. The alkaline suite formed in collisional settings in island arcs whereas the Tombstone suite was emplaced in an active fold and thrust belt in a continental arc. In addition to different regional settings, these suites differ in the type of underlying basement, metallogeny, and the styles of mineralization. Both magmatic suites were emplaced over short intervals, probably in response to specific tectonic events. In the case of the alkaline suite, the tectonic event promoted magmatic processes suitable for the formation of porphyry Cu-Au deposits. The tectonic environment is less well constrained for the Tombstone suite, but the result was the formation of distinctive porphyry and intrusion-related Au¦W deposits.

Jan 1, 1995