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By Christopher R. Lattanzi

"Discounted cash flow analysis provides a means of relating the magnitude of expected future cash profits to the magnitude of the initial cash investment required to purchase an asset or to develop it for commercial production. The objectives of discounted cash flow analysis are to determine:.. The net present value of a stream of expected future cash revenues and expenditures... The rate of return which the expected future cash flows will yield on a given level of initial cash investment.In the case of mineral properties, discounted cash flow analysis is generally accepted as the preferred method of valuation, whenever sufficient data are available to permit its reasoned application. Sufficient data are required to support estimation of all of the individual elements of cash revenue and cash expenditure which will be associated with the development and operation of the property, up to the end of its estimated life. It is the accuracy of these input estimates which determines the validity of the resulting determinations of profitability and rate of return on invested capital.In undertaking any discounted cash flow analysis, it is important to recognize certain fundamental attributes of the mining industty:.. The basis of any mineral development is the existence of an ore reserve... Costs are determined by the number of tonnes mined and processed, while revenues are determined by the number of pounds or ounces of metal produced. The two are related by the recovered grade of the ore... Profit is typically more sensitive to changes in revenue than it is to changes in cost... Commodity price is a principal determinant of revenue, but it is also the factor with which is associated the greatest level of financial risk.In the end, of all of the factors which must be considered in the discounted cash flow valuation of a mineral property, the most significant are the reliability of the reserve estimate, particularly with respect to recovered grade, the price at which the product is to be sold, and the risk of not maintaining the projected level of price."

Jan 1, 2003

"“Developed by the CIM Sub-Committee, these guidelines are an addition to Guidelines Specific to Particular Commodities which are appended to the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.Rock Hosted DiamondsJennifer Burgess, Consultant, Sechelt, BCNeil Buxton, WWW International Diamond Consultants Ltd.Darren Dyck, BHP Billiton Diamonds Inc., Kelowna, BCMartinus Oosterveld, (De Beers retired), Plettenberg Bay, South AfricaRichard Routledge, Scott Wilson Roscoe Postle Associates Inc., Toronto, ONMalcom Thurston, De Beers Canada, Toronto, ONPreambleDiamonds are produced commercially from intrusive rock, consisting of kimberlite and lamproite, and from alluvial and marine placer deposits. These guidelines apply to rock deposits; the term ""diamonds"" herein refers to natural diamonds; ""diamond deposits"" refers to diamonds hosted in kimberlite and lamproite rocks; and ""diamonds"" and ""stones"" are interchangeable.The CIM Best Practices General Guidelines for other commodities are also applicable to diamond deposits, however, because of diamond's distinguishing aspects, additional guidelines are appropriate as published in the CIM Guidelines for the Reporting of Diamond Exploration Results and these Best Practice Guidelines for estimating Mineral Resources and Mineral Reserves (MRMR).Diamonds differ from other minerals. Firstly, they occur as discrete particles in concentrations as low as parts per billion. Secondly, the release of diamonds from the kimberlite or lamproite host rock is a function of the excavation and treatment process. Thirdly, the value of diamonds varies from deposit to deposit and varies with stone size within a given deposit. These aspects must be considered when sampling, evaluating the resource and establishing the reserve of a depositThe product from metallic mineral mines is generally quite liquid in terms of number of potential buyers, and the commodity prices and price structure are published daily. In contrast, most diamonds are valued in the overall market context only 10 times a year in ""sights"" and the marketing of diamonds is dominated by a small number of organizations. Diamond valuation is more akin to industrial minerals valuation in that process recovery is important at the ""assay stage"", the impact on price of new goods arriving on the market must be evaluated, and product quality must be acceptable to potential buyers."

Jan 1, 2003

By B. Salopek

The greatest part of crushed stone, gravel and sand production is extracted through open pit operations, whereas gravel and sand are also partially extracted from riverbeds. Its obvious that such a mining activity provokes some changes in the configuration and environmental characteristics of the region, in the temporary or permament disapperance of vegetable or animal species and in the creation of noise, dust and waste water. However, the above-mentioned mining operations shouldn not have only negative effects on the landscape and land potential, but they can discover and predetermine the potential of the exploited areas for various communal purposes after exploitation (eg. sports and recreation centers, campsites, resorts, fish-farms, etc.). In this paper, the production of construction aggregates in plants located in the vicinity of Zagreb, the capital of Croatia is presented. The advantages and disadvantages of aggregates? production in urban areas in the spirit of sustainable development are discussed.

Jan 1, 2003

By S. C. Brown, R. C. G. Oliveira

Surface wettability, or contact angle, dictates a number of multiphase ensemble interactions that influence particulate dispersability and adhesion behavior (e.g., filler compatibility] in addition to a number of other phenomena including biocompatibility and bulk powder segregation. The wettability of particulate surfaces significantly impacts nearly all process industries; however, the available techniques to access this quantity are either relative, or tedious-and are application or industry specific. In this study, key features of existing techniques have been combined to design an improved method to delineate particle wettability that is simple, versatile and capable of providing reproducible measurements in an industrial environment.

Jan 1, 2003

By James P. Stewart

This case history describes the engineering design and construction for the Contractor of a 35-ft-deep excavation for an 800-square-foot addition to an existing sewage pump station. The site posed unexpected geotechnical complications that included deep gravelly soil, a history of local construction difficulties, groundwater consisting of heavy salt brine, and the need to underpin the existing pump station. The project took an interesting twist when the Owner issued a change order limiting the dewatering discharge to a fraction of that required to lower the water table. This documents the interesting circumstances of this job and documents the unusual subsurface conditions in the Syracuse, NY Lakefront area.

Jan 1, 2003

By Hector Henao

To provide thermodynamic data for converting the nickel matte to liquid nickel, an experimental study was conducted in the phase equilibrium between the Ni-S alloy and the CaO-Ah03 based slag melted in a MgO crucible at 1873 K under controlled Pso2 of 10.1 kPa and pO;, in a range between 2.5x,IO,2 and 10.1 Pa by using CO-C02-S0Z gas mixtures. The content of nickel in the slag at POz of 10.1 Pa, above which solid NiO is expected to precipitate in the equilibrium state, was found to be 4.1 mass% and the contents of sulfur and oxygen in the nickel melt were 0.4 and 0.2 mass%, respectively. It was clarified that increase in the temperature reduces the solubility of nickel in the slag and the contents of sulfur and oxygen in the alloy. The distribution of minor elements such as gold, silver, copper, cobalt, iron, arsenic and antimony between the Ni-S alloy and the CaO-AI20) based slag was also studied. The distribution ratios of iron and cobalt, defined by (%X in slag)/[%X in alloy] where X is the minor element, are larger values than that of nickel, while those of copper, silver and antimony are similar to that of nickel. The distribution ratios of arsenic and gold are lower than that of nickel in the higher range of oxygen partial' pressure.

Jan 1, 2003

By G. Meiers, M. O’Kane

Dry cover systems as a closure option for management and decommissioning of waste rock and tailings is a common prevention and control technique used at numerous sites around the world. Numerous site-specific factors control the long-term performance of dry cover systems. Site-specific climate conditions are one of the key factors to consider when determining the objectives of a dry cover system because these conditions will significantly influence long-term performance. There are advantages and disadvantages of characterizing the site on an annual basis as generally a “dry” site (annual potential evaporation greatly exceeds annual precipitation), or generally a “wet” site (annual precipitation meets or exceeds annual potential evaporation). The field performance monitoring data and discussion presented herein illustrates the caution that is required when using these “annual” criteria for characterizing site climate conditions. Numerous sites exist where precipitation exceeds potential evaporation on an annual basis; however, the site typically experiences hot, dry summer months where evaporation greatly exceeds rainfall. These dry summer conditions have a strong influence on long-term performance. In contrast, sites where potential evaporation exceeds precipitation on annual basis, typically experience periods of the year when a moisture surplus occurs, which also impacts on long-term performance. This paper uses soil-atmosphere cover design modelling and field performance monitoring from sites in Canada, Australia, and the United States to demonstrate the importance of considering site-specific climate conditions when predicting long-term cover system performance.

Jan 1, 2003

By C. Cunningham

The process of initiating opencast blasts through long cables is onerous. An obvious alternative is to replace these with radio controlled firing apparatus. Such devices appear from time to time and with the advance of telecommunications, more are likely to appear. However, there are two crucial and seemingly intractable obstacles to overcome: firstly, the problem of malfunction of the system, which can either fire prematurely or go into a state of suspense in which it is unknown whether firing might unexpectedly occur, and secondly, the problem of terrorism, as such a system could provide the capability for an off the shelf remote bomb. The issues of accessibility and electronic reliability when linked to explosives in a mining environment have to be demonstrated to be adequately covered before serious consideration should be given to these systems, up to now largely confined to military applications.

Jan 1, 2003

By W M. Tekano, T S. Coulter, N M. Hutt

The Vancouver Island Highway Project (VIHP) was a $CAD 1.2 billion expenditure by the Province of British Columbia to improve travel safety and relieve traffic congestion between Victoria and Campbell River on Vancouver Island. In the section of highway between the Tsolum River and Oyster River, on the Inland Island Highway portion of the VIHP, over half of the rock to be cut and filled was found to be net acid generating. The Tsolum River has been impacted by metal leaching and acid rock drainage (ML/ARD) for decades from an upstream closed minesite. Geochemical testwork indicated: over half of the rock along this section of highway was potentially net acid generating based on a site-specific SNPR (=NP/SAP) criterion of 1.5; some core samples were already acidic; pyrite occurred in disseminated framboidal and gel forms; the rate of acid generation was not high; measured neutralisation potential (NP) provided some lag time for the onset of net acidity; and non-carbonate neutralising minerals prevented low pH (These predictions led to ML/ARD controls involving: realignment of the highway; elevation control to minimise the volume of disturbed rock; encapsulation of blasted-rock fills within the highway, surrounded by low-permeability till and covered with asphalt; and diversion of water away from cut faces. Internal pipes drained any water reaching the fills into external ditches and ponds, where the water could be monitored and, if necessary, treated. Water from the cuts was also captured in ditches and carried to monitored ponds. Elevated aqueous sulfate concentrations in several ponds confirmed that sulfide minerals were oxidising, but the lack of both acidic pH and increasing trends in concentrations demonstrated that ML/ARD was controlled. Contingency plans for any pond that may become acidic include water treatment, which predictive testwork has shown would not require substantial amounts of limestone or lime.

Jan 1, 2003

By K. G. Tsakalakis

The Greek Cement Industry is a vital sector of our economy. With an annual production of cement over 15.5 million tonnes, it contributes significantly to the national gross domestic product (G.D.P.). The cement industry, as other mineralogical transformation process industries (lime, glass, ceramics, extractive metallurgy etc.), is high energy intensive. Each tonne of cement produced requires not only large amounts of fuels (coal, fuel oil), but additionally a significant quantity of electrical power as well. All fuels consumed by the Greek Cement Industry are imported and energy accounts for one third of the cement production cost. Therefore, it is of interest of the community and the industry to increase energy efficiency, to reduce the quantities of fuels consumed in the cement manufacturing process. It is also known that like almost all manufacturing processes, the cement industry produces large amounts of CO2 (combustion of fuels, de-carbonization of limestone and use to electricity). The utilization of wastes (principally as alternative fuels, scrap tires, spent solvents etc.) is compatible with the general principles of waste management and it is also a common practice in other European and developed countries. In the present paper the economic, social and environmental benefits provided by the recycle process of the various wastes in the Greek cement plants are extensively analyzed. From the whole work, it was concluded that such a practice: - replaces a significant percentage of imported fossil fuels in the cement manufacturing process, - maximizes the recovery of energy and also ensures their safe disposal, - produces overall environmental benefits by reducing releases to air, water and land, - prevents resource depletion of valuable non-renewable fossil fuels, - overcomes the need for the construction of dedicated incineration facilities, - contributes positively to the principles of the sustainable development.

Jan 1, 2003

By Jesús L. Valenzuela

The solvent extraction for gold from alkaline cyanide solutions has been investigated using LIX 79 guanidine-based extractant. Different variables that could affect the extraction system were evaluated: equilibrium time, aqueous pH and extractant and modifier concentrations. The extraction isotherms of the aurocyanide complex with respect to other cyanoanions were compared and the following order of selectivity Au>Ag>Cu>Zn>>Fe was observed. From the pH isotherms it was found that aurocyanide can be extracted in alkaline media and a better separation with respect to other cyanoaniones was obtained in the range of 10.5 < pH < 11.2. Better selectivity was observed when using LIX 79 and tridecanol at 10% and 5% vol, respectively. Stripping gold from loaded organic was carried out at pH>12, using NaOH and NaCN solutions.

Jan 1, 2003

By S Planeta

The use of explosives in underground mining has its drawbacks, particularly in the case of thin or narrow vein type deposits. Due to that, there is a need to develop more discriminative and safe rock-breaking technologies. Mechanical rock splitting seems to be one of the most promising avenues in this respect. This paper describes briefly principles and features of radial-axial splitters. It reviews a feasibility study done to evaluate a potential of this technology in selective mining. It was intended to compare productivity and cost of ædrill-splitÆ mining with conventional cut-and-fill method. Hypotheses and assumptions adopted, methodology used and the obtained results are presented and discussed. The study has confirmed an interesting potential of radial-axial splitters in mining thin and narrow vein deposits. In conclusion, it is stressed however, that it will take more R&D work to corroborate the results obtained. Some suggestions concerning future research in this field are also given.

Jan 1, 2003

By Veronica Escobar

This paper presents results from a two month pilot evaluation of EMEW® technology at CODELCO Radomiro Tomic, in Chile. A prime focus in the test programme was to assess the technology?s capabilities to recover high quality copper from the Radomiro Tomic electrowinning tank house bleed stream. The EMEW® cell developed by Electrometals Technologies Ltd. tolerates substantially higher levels of contaminants than those found in conventional tankhouse, operating at high current densities while maintaining high cathode copper quality all the way down to low copper concentrations. To maintain high copper purity in a copper electrowinning (or electro-refining) tank house, a continuous bleed of solution must be taken from the tank house inventory to prevent build-up of contaminants, and resulting degradation in cathode quality. In an SX-EW operation, this bleed stream is normally recycled back to the solvent extraction circuit, but is occasionally sent to the raffinate pond to re-enter the leach circuit. Return of the bleed stream to the solvent extraction circuit creates a continually recycling load of copper in solution, which may reduce overall plant capacity and expansion potential. Return to the leach circuit has a similar effect, and methods to reduce its impact are always under consideration. The use of the EMEW® technology allows for direct and efficient recovery of near 100% of the contained copper instead of recycling. Tests were run at ambient temperature on bleed electrolyte using current densities which varied between 250 and 1100 amps per square meter, with copper concentrations between 38 and 1 g/l. A profile of maximum allowable current density with respect to concentration was developed, showing that high grade copper can be obtained at all levels of concentrations tested, by choosing an appropriate current density and electrolyte flow rate. The results of this programme show that the recirculating bleed electrolyte from an SX-EW operation can be converted into an expansion in copper production at a comparatively low investment cost.

Jan 1, 2003

By Hideki Yamamoto

A new technology to convert fluoride gas (C2H2F4 : R-134a) contained in the exhaust gases from semiconductor manufacturing plants and refrigerators directly into a harmless substance have been established, thus, presenting a new concept for the disposal of fluoride gases such as CFCs that are associated with the global warming. Experimental results verify that chemical reactions with metal compounds can take place at substantially lower temperatures of 700- 800K as compared with combustion treatment temperatures of 1200-1500K. The reaction product is mainly metal fluoride, which chemically is a harmless material. Furthermore, this process is compact, easily controlled, safe and has low running costs. This paper deals with a new chemical reaction method for the harmless disposal of gases effecting the global warming.

Jan 1, 2003

In the 1980s and?90s the gold mining industry in South Africa came under pressure from the continued poor dollar gold price and escalating Rand based costs, furthermore the external impacts on the industry were changing. Thus, the Chamber of Mines (COM) shifted its focus away from many historical areas of support towards the new industry challenges in safety and health, labour markets, environmental responsibility, mineral rights legislation and social responsibility. During 1997 the lack of funds and the changes facing the tertiary institutions were often subjects of discussion at the various sub-committee meetings. The Metallurgical Sub-committee of the Chamber Education Fund or the Sub-committee of Consulting Metallurgists as it was known identified the need for the funding structure to change with the times. Up to this time the Chamber of Mines operated an Education Fund that supported mining industry academic departments at various South African tertiary institutions; these funds were derived exclusively from the country?s gold and coal mines the basis of Chamber membership. Funds of less than R5 million per annum were available for distribution by the three disciplinary sub-committees of mining, metallurgy and geology.

Jan 1, 2003

By K. Osseo-Asare

Rate laws for the hydrogen reduction of metal ions are typically of the form: [r = -d[M(II)]/dt = k[M(II)]xPy2H] where k is an apparent rate constant, [M(II)] and PH2 represent dissolved metal concentration and hydrogen pressure respectively, while x = 0 - 1 and y = 0.5 - 2. Half-order dependences have been reported for some M(II)/H2 systems; however, no satisfactory explanations have been offered. In an effort to bridge this gap in our understanding, the published precipitation rate data (for M(II) = Cu(II), Ni(II), and Co(II)) are reviewed (with emphasis on the reported reaction orders) and compared with the corresponding but limited electrochemical polarization data. Based on the available literature on the electrochemical kinetics of the M/M(II) and H2/H+ systems it is demonstrated theoretically that, under certain conditions (e.g., in the presence of electron-conducting solids), the rate of the M(II)/H2 reaction can be expressed as: [-d[M2+]/dt = k[M2+]2/1P2/12H] It is concluded that electrochemical processes probably play an important role in the hydrogen reduction of metal ions, especially for systems that involve heterogeneous catalysis.

Jan 1, 2003

By Arturo Ressi di Cervia

Construction of the drilled shafts for the Brightman Street Bridge Replacement Project were not only challenging due to working over the water but were also challenged by changed soil conditions, concurrent work being performed by an adjacent contractor on the same project, environmental restrictions and severe winter conditions. A total of 36 x 8 feet diameter drilled shafts with 7.5 feet rock sockets were installed for the East and West bascule piers. This project also included Osterberg Cell load testing on two production drilled shafts at each the East and West bascule piers. The results from the load test program were used to fine tune the design of the drilled shaft rock sockets. From a constructability standpoint the reverse circulation drilling method with a pile top drill rig proved to be an excellent choice for drilling the overburden and rock sockets of the large diameter deep drilled shafts.

Jan 1, 2003

By S. Pathak, B. Nilsen

Abstract: In recent years, probabilistic approach with the calculation of probability of failure instead of a factor of safety against failure is emerging in practice. The main objective of the paper is to discuss a probabilistic approach in rock slope stability analysis for Himalayan conditions. Due to the fragile geology brought about by the tectonic movements along the hill slopes, dramatic variations of the topography and intensive surface runoff during every monsoon season, serious slope failures occur frequently in Himalayan region. Slope failures have also been triggered by seismic activities. The probabilistic approach is applied to stability analysis for a road cut along the Desander back slope of the Kali Gandaki hydropower project in Nepal. It is concluded that the probability approach offers a more accurate grasp of the actual condition than any factor of safety. Zusammenfassung: In den letzten Jahren ist es mehr gewöhnlich geworden, ein stochastisches Verfahren und eine Berechnung von der Wahrscheinlichkeit eines Zusammenbruchs statt einer Berechnung von Sicherheitsfaktoren zu verwenden. Das Hauptziel dieses Artikels ist das stochastische Verfahren in Stabilitätsanalyse von Gebirghängen, welches an Himalayische Verhältnisse angewandt worden ist, zu diskutieren. Wegen der spröden Geologie die durch tektonische Bewegungen entstanden ist und den dramatischen topographischen Variationen sowie viel Oberflächenwasser während des Monsuns, kommen in der Region des Himalayas oft mehrere erhebliche Abhangszusammenbrüche vor. Abhangszusammenbruche ist auch von seismische Aktivität ausgelöst worden. Das stochastisches Verfahren ist auch benutzt worden, um die Stabilität von einem Wegschnitt in dem Desander Gebiet von dem Kali Gandaki Wasserwerk-Projekt zu analysieren. Die schlussfolgerung ist, dass die Ergebnisse eines stochastisches Verfahren die wirkliche Verhältnisse eines Abhangs besser beschreibt als der Sicherheitsfaktor. Résumé:- Ces dernières années, une approche probabiliste basée sur le calcul d’une probabilité de cassure au lieu d’un facteur de sécurité préventif d’une cassure est de plus en plus utilisée. L’objectif principal de ce papier est de discuter une approche probabiliste de la stabilité de versants rocheux en himalaya. Due à la fragile géologie causée par les mouvements tectoniques sur les versants de collines, aux dramatiques variations de topographie, ainsi qu’au lessivage intense du relief à chaque mousson, de sérieux glissements de terrains se produisent fréquemment en Himalaya. Les glissements de terrain sont aussi déclenchés par l’activité sismique. Cette approche probabiliste est appliquée aux analyses de stabilité d’une section de route le long du versant arrière Desander du projet « hydropower » du Kali Gandaki au Népal. On en conclut que l’approche probabiliste offre une estimation plus précise des conditions actuelles que n’importe quel facteur de sécurité.

Jan 1, 2003

By M. J. Senk, A. Lusin

Federal regulations require that methane liberated at the face be diluted and removed to maintain methane gas concentrations below 1pct (CFR) in working places and intake air courses. The delivery and distribution of intake air at the face is critical for effective face ventilation. Improved techniques for monitoring the movement of intake air to the face are needed. A test system was developed and a computer program written for using a three-axis ultrasonic anemometer to measure airflow in a simulated mine entry. Results of tests conducted in the entry showed that the anemometer is a valuable tool for measuring mine airflow conditions near the face.

Jan 1, 2003

By Gabriel Riveros

Fire refining of copper consists of two stages copper oxidation and copper reduction. Very frequently the capacity of the anode furnace is determined by the rate of copper reduction, The analysis of factors affecting the rate of the oxygen reduction from a liquid copper with solid carbon or injected hydrocarbons pointed out the role of the mass transfer in a liquid copper in final stage of the reduction. Experimental results of copper reduction with graphite and injected natural gas in laboratory-scale crucibles showed two stages of the reduction process with a sharp change of the controlling mechanism. The estimated dynamic surface area of gas bubbles based on the measured bubble frequency and the gas flowrate allowed for the determination of the reaction constant as a degree of the partial pre-combustion of the air/natural gas mix. The variation of the used reductant as a function of the oxygen concentration and temperature has been evaluated based on the determined kinetic model. The intensification of copper reduction in fire refining has been discusses on the basis of obtained kinetic data and analysis of various factors determining the time of reduction.

Jan 1, 2003