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By A. Fakhimi

The effect of porosity on mechanical behavior of rock has been studied in the past using both experimental and numerical techniques. One important aspect of this study that has not received much attention is the role of void size and distribution on the mechanical behavior of rock. In this study, the CA2 computer program that is a hybrid discrete-finite element program for two-dimensional simulation of geomaterials is used. Numerical specimens with different macro-void sizes are loaded uniaxially. The Young?s modulus, Poisson?s ratio, uniaxial strength and crack initiation stress are studied. The numerical results are compared with the database of experimental tests on Plaster of Paris specimens containing Styrofoam spheres with different void sizes and porosities. It is shown that the macro void spatial distribution is partly responsible for the scatter of the experimental data. It is also shown that not-only the porosity but also the pore size can affect the deformability, crack initiation stress and rock strength.

May 1, 2009

By B. D. Wood, J. A. Fowler, H. S. Grütter, J. M. Kong

Abstract- The phased approach used by De Beers for diamond exploration is briefly outlined. The Victor kimberlite is one of 19 kimberlites in a cluster near Attawapiskat, Ontario. The progress at the Victor kimberlite is summarized, and the operations are described within the framework of this staged approach. An evaluation program is currently under way on the Victor kimberlite, but although results are encouraging, insufficient diamonds have been recovered to permit disclosure of estimates for the grade and value.

Jan 1, 2001

By L. A. Wolff

"Second only to profitability (but not always), productivity is the most sought after measurement for any operation. Whether it is in mining, manufacturing, construction, etc. managers always strive to know how productive various plants are. Even the Federal Government publishes, on a monthly basis, the nation's factory productivity.Just what is productivity and how is it measured? This is an important topic that needs definition. There could be as many definitions as there are people who use it. In the mining industry, the problems of defining productivity would be analogous to the definition of equipment availability. Each mine uses its own definition to suit its needs. Webster's Dictionary primary definition for productivity is ""the quality or state of being productive,"" with productive defined as ""yielding or furnishing results"". This is a definition open to a broad spectrum of interpretation. A discussion of how productivity is currently used in the mining industry and an introduction to a potentially different approach to its measurement and meaning is outlined in this paper.Defining ProductivityTypically, mining companies track several productivity measurements. These are partial measurements and can include the following: tons per specific equipment class per hour, tons per man-hour, and tons per shift. None of these, however, track the over -all performance of an operation, that is, a unit of output per unit of input.For a mining operation, output can be defined as the ore for mill processing. Input includes the required components of production to get to the first step of processing.The Wesbter's Dictionary definition exposes a major fault with the popular conception of productivity. The critical issue of accountability is not addressed. Anyone can produce, but how effectively and efficiently are resources used? Quantifying an inclusive measurement is difficult. Statistics referring to an increase in productivity are often published. For example, the statement, ""gold productivity has increased by 10%"" has many potentially dangerous interpretations. One must ask, what does this statistic really mean? Did gold companies produce 10%” more gold? Were less manpower or equipment required to produce an equivalent amount of gold? Did ore grades increase resulting in more ounces of gold produced, etc. Obviously, production and productivity can have similar implied applications and meanings, but also two different, distinct meanings.To mitigate a problem like this, a standard needs to be developed within the mining industry. Because of varying ore grade, changing waste to ore ratios, different mining methods, etc. all of which have a direct impact on mining, development of a standard is difficult. Kendrick(1) discusses the use of Total Factor Productivity as a productivity measurement. Summarized, the total factor productivity measure is an indication of the change in efficiency in the use of basic labour and capital factors associated with an operation.This measurement has little meaning when calculated at a given point in time. It should be an on-going calculation, tracking an operation over a period of time, to evaluate trends. These trends can be used to determine if an operation's productivity is what it should be, and alert management to potential problems before they become major and adversely affect an operation."

Jan 1, 1990

By Peter A. Oshust

The EKATI Diamond Mine has successfully completed the development and commissioning of the Panda Underground Project to extract the ore below the Panda open pit. The dominant kimberlite domain of the Panda Underground, intermixed olivine-rich and mud-rich resedimented volcaniclastic kimberlite (RVK), is very similar to the kimberlite domain characterizing the open pit portion of the pipe. A sublevel retreat mining method is in operation underground at Panda; near-vertical blast rings are drilled and blasted into an open void. Broken ore is mucked with load, haul and dump trucks (LHD?s), sized underground then moved to surface through a conveyor system to the process plant. An advanced feasibility study is in progress at the Koala Underground Project. The Koala pipe is geologically more complex than Panda. The pipe below the open pit is comprised of at least five distinct kimberlite domains. There is a 100 m thick zone of incompetent low-grade mud-rich RVK between the open pit and the stable high-grade olivine-rich primary volcaniclastic kimberlite where mining will be initiated. As a result, it is proposed that Koala will employ sublevel caving; each blast ring shot would be confined and mucked in sequence to maintain the cave of the over-lying low-grade RVK ore. The sublevel cave method seeks to safely defer the mucking of the low grade ore to the latter part of the mine life.

May 1, 2006

By C. J. Li, J. L. Feng

In the present study we focuses on developing the poroelasticity model that deals with adsorptioninduced permeability change mostly occurred in porous media constituted several phases such as coal. The underlying pressure induced by adsorption is obtained by Virial expansion form, which is substantially founded on statistical physics. The corresponding thermodynamic pressure applying on the pore surface is then used to detail the pore pressure and further to evaluate the macroscopic volumetric strain and the porosity. In the process of physical adsorption, the adsorbed phase is in thermodynamic equilibrium with the gas phase regardless of pore size, and the corresponding chemical potentials are all equal. The relationship between surface strain and volumetric strain is derived under infinitesimal deformation conditions to gain an explicit formulation of pore surface area with respect to volumetric strain and porosity. After the formulation of surface stress modified by the Langmuir isothermal adsorption is derived, the differential micromechanical constitutive equations of porous media are obtained. By supposing that the ratio of current permeability to initial is equal to the cubic ratio of current porosity to initial porosity, the differential equations for permeability change is consequently derived. The numerical simulations by the present model for permeability change of coal induced by adsorption of CO2 and CH4, respectively, are presented under confined stress conditions. The predictions from the model are good in agreement with the experimental data of sorption-induced permeability change of coals in the literature.

Jan 1, 2015

By Umbreen Agha, Stephan L. Chryssoulis, A. Margaritis

"The deportment of gold in samples of the biooxidation feed and product from the Harbour Lights mine in Western Australia was determined using optical microscopy and microbeam techniques such as Secondary Ion Mass Spectrometry (SIMS), Time-of-Flight Laser Ionization Mass Spectrometry (TOF-LIMS), and Electron Probe Microanalysis (EPMA). The main objective was to determine the mechanisms by which acidophilic bacteria (Thiobacillus ferrooxidans) liberate refractory gold which is locked in a sulphide minerals host as visible gold inclusions (> 0.1 µm) and as submicroscopic or 'invisible' gold.Using the integrated mineralogical approach approximately 99% and 100% of the assayed gold in the biooxidation feed and biooxidation product was accounted for. The results were compared to and verified by chemical assays.The gold deportment study indicates that during biooxidation, locked visible and 'invisible' gold is rendered cyanidable by the direct action of Thiobacillus ferrooxidans as well as indirect chemical leaching. Visible gold which is enclosed in sulphide minerals is liberated or partially exposed and is therefore rendered cyanidable as the host mineral is oxidized and dissolved. 'Invisible' gold either coalesces on the surface of the host sulphide mineral as the particle is dissolved or is released into the liquid phase and immediately adsorbs onto the surface of other ore particles with a net negative charge.The shakeflask suspension indicates that direct bacterial oxidation pits and channels correspond to zones of 'invisible' gold and arsenic (in pyrite) enrichment in the host sulphide mineral."

Jan 1, 1996

By R. Anthony Hodge

Who/what is ?community?? What are most communities interested in, what do they care about? What has happened in the past? What is happening today? What is hoped for tomorrow? What are the lessons and keys to success?

May 1, 2006

By Ltd Changsha Research Institute of Mining and Metallurgy Co., Shi Yunliang, Luo Yunbo, Chen Jun, Liu Miaohua, Xiao Jinxiong, Long Yan

"A refractory lead-zinc oxide ore located in Yunnan has hundreds of tons of metal reserves, which is hard to be recovered effectively by conventional oxide ore beneficiation methods. In this study, by sulfidation roasting of raw-ore, sulfide deposit is formed on the surface of the lead-zinc oxide ore, and then the roasted ore is processed with bulk flotation. The test results indicate that a bulk concentrate with grade of 7.85% lead and 34.24% zinc, recovery of 79.13% lead and 79.04% zinc, respectively, can be obtained by using conventional sulfide ore flotation method.The sulfidation process shows that pyrite in the raw ore releases S firstly, then S reacts with PbO and ZnO to transform into PbS and ZnS. When the mole ratio of sulphur:zinc is 0.59, the surface of smithsonite is covered with a layer of zinc sulfide. When the mole ratio of sulfu:zinc rate is 1.47, entire simthsonite particle is transformed into zinc sulphide. Thus the transformed particles can be recovered by flotation without complete sulfidation.INTRODUCTIONWith the increasing demand for zinc and decreasing of zinc resources, people pay more attention on development and utilization of zinc oxide ore. However, zinc oxide ore has wide range mineral kinds, complex mineral composition, disseminated fine-grained particle size, and high content soluble salt, so current study results about the zinc oxide ore with conventional flotation are not satisfactory. So far, process dealing with zinc oxide ore includes: sulfuration (Na2S)-flotation, direct flotation with fatty acids collectors, metallurgical methods, in which sulfuration flotation is the most widely used method. The basic principle of sulfuration flotation method is firstly roasting oxide ore with vulcanizing agent, and then recovering the sulfurated oxide ore with flotation, which is similar with recovering nature sulfide ore by using conventional collectors such as amines and xanthate."

Jan 1, 2016

By L. W. T. Weitzel

"This paper reviews the Falconbridge- SMRQ’s Raglan project in northern Quebec and the process that was used in developing its current long-term mine plan. Challenges were many and not only limited to the longevity of the project, numerous ore deposits (both underground and open pit), and a 40 km property strike length. As a result of its remote northern location, other factors such as progressive reclamation, leachable mine waste, water treatment, and waste management were also part of the plan. A combination of modern planning tools were used to formulate the plan including DataMine, Mine 2-4D, AutoMod Simulation, and an Excel-based financial spreadsheet to bring the total plan together. The focus of the paper is to show the complexity of modern mine planning and associated economic modelling of mine processes. IntroductionThe Raglan project is located 1660 km directly north of Quebec at the northern tip of the Quebec Peninsula in Nunavik. The main property is 40 km in length stretching from the Donaldson airport area at the eastern edge of the property to East Lake at the western edge. The Deception Bay port is 90 km north of the main complex/mill situated at Katinniq which lies approximately in the middle of the property (Fig. 1). The mine processes 1 000 000 tpy of ore from both open pit and underground sources. The mill is forecasted this year to produce more than 150 000 t of concentrate grading more than 18% nickel. All personnel and critical cargo are transported to the site via a company-leased 737 jet from Rouyn-Noranda where the main administration office is located. The majority of cargo is shipped to the site via Deception Bay from Quebec and on the return trip, nickel concentrate is shipped back. From Quebec, the nickel concentrate is sent by rail to the Falconbridge smelter in Sudbury and on the reverse rail haul, nickel matte from the smelter is sent to Norway via Quebec."

Jan 1, 2003

By Michel Gauthier, Pierre Marcoux, Gaétan Morin

"The recent opening of Muscocho's gold mine at Montauban, as weil as the discovery of several new copper-gold showings of a similar nature near the confluence of the Saguenay and St , Lawrence has revealed the existence of a new metallogenic gold province which is located within supercrustal units of Helikian age within the Grenville Province. Three metalliferous belts have been identified, each one of which is related to a series of SW-NE trending faults. The first is located in southeastern Ontario and southwestern Quebec. The second extends from the Balmat-Pierrepont mining district of New York State up to the Lac St. Jean region of Quebec, and includes the Montauban camp. The third follows the St. Lawrence river in Charlevoix County and along the north shore of the Gulf of St. Lawrence.The gold mineralization which is present in the central portion of the Grenville Province is of two types: either stratiform or vein. Deposits of the first type, of which the Muscocho is the type locality, are economically the more interesting of the two. Not only is this mineralization stratiform, but also shows a distinct affinity to AI-rich, Mg-rich or calc-silicate-rich bands. As is the case with the Bousquet and Hemlo regions of the Superior Province, they are associated with layers which are rich in sillimanite and occasionally staurolite. A second parallel between the Bousquet and Montauban deposits might be the presence of manganesian gamets, which have been recognized at the two localities. Some of the mineralization in the central Grenville Province is located within thin bands of iron formation which are rich in arsenic.The stratiform gold deposits of the central Grenville Province are of exhalative origin and are located within a volcano-sedimentary terrane. It is probable that a part of the gold present in these Helikian deposits have been derived by remobilization of Archean mineralization. The vein showings form as a consequence of the remobilization of the Helikian strata during the Grenville metamorphism,"

Jan 1, 1985

By C. Barnett

"The mill at Noranda Mines Limited, Geco Division in Manitouwadge, Ontario went into production in 1957 treating 3,500 tons per day of copper, zinc, silver, lead ore. It was not until 1964, however, that the zinc concentrate drying plant was constructed. In 1970, milling capacity was increased from 4,000 to 5,000 tons per day. The zinc content of the ore is quite variable so that the tonnage of zinc concentrate dried varies from 200 to 650 tons per day.The drying plant was designed to dry 25 tons of zinc concentrate, dry basis, per hour from an initial moisture of 8.5% to a final moisture of 2%. Major components were selected so that capacity could be increased to 35 tons per hour with minor modifications.The rotary dryer is a Hardinge type ""XH-12"" with a diameter of 80"" and a length of 50 feet. The all welded construction shell is 1/2 inch thick mild steel plate with 3/4"" thick reinforcing bands under the tires arranged for operation at a slope of 1/2 inch to the foot. The 3/8"" x 12"" radial flights are welded to the shell. There are no flights in the last ten feet of the shell in order to reduce dusting. This unit is driven by a 50 HP motor through a Hamilton type CD250 double reduction helical gear speed reducer. The shell speed is 5.8 RPM.The standard Peabody horizontal air heater has a rated capacity of 10,000,000 B.T.U. 's/Hr. The combustion chamber is lined with high temperature refractory brick and is air cooled. The conical outlet section of the air heater is lined with insulating fire-brick. The burner is a type AT wide range mechanical atomizer fired by a type ""CR"" gas-electric ignitor.The Bunker ""C"" fuel is supplied by a Compower duplex pumping, heating and straining unit, including tank hotwell, Powertronic oil line heating system with a 550/24 volt transformer."

Jan 1, 1972

By S. L. Gula

"Effective and timely communication during routine operations, and especially during emergency situations, is no easy task in any underground mine. At Cominco Fertilizers, Potash Operations, where 150people are employed underground to produce 3.1 million tonnes of potash per annum at a depth of 1100 m (3600ft), this is no exception. The over-all mine workings underlie an area of approximately 20 km 2 with average travel time to the active mining areas being approximately 30 to 40 minutes by light vehicle, and significantly longer than this for heavy equipment.In a mine of this size, the deployment and management of personnel and materials on a day-to-day basis, and during mine emergencies, is an important exercise. The Personal Emergency Device (PED) system has provided the Potash Division a means to achieve improvements in this area and reduce the communications bottleneck.The MineAt Cominco Fertilizers Potash Operations, approximately 30 km southwest of Saskatoon, the orebody is the same horizon being mined by other potash producers in the Saskatoon area and extends over 300 km in an east-west direction, and approximately 150 km in a north-south direction. Mining operations are carried out with approximately 150 employees operating on a continuous-shift basis, seven days a week.Mining is presently being done from Block 6 which takes the mine to its northernmost boundary and contains reserves of approximately 50 million tonnes. Production is from one level by five twin rotor continuous mining machines, each capable of cutting a face up to 5.5 m wide and 3.3 m high . All ore is transported to the shaft via approximately 20 km of conveyor where it is removed to surface by two 24 tonne skips.After the ore is conveyed to the mill for processing, the finished product is shipped by rail car or trucks to other parts of Canada, the United States or through Vancouver to other parts of the world."

Jan 1, 1993

By H. W. Smith, D. Guerin

"This paper describes the development of a dynamic model for a full- scale (64 tonnes/hr) grinding circuit consisting of an open-circuit rod mill feeding a ball mill operating in closed circuit. The object of constructing such a model is to investigate the static and dynamic behaviour of potential control schemes. Model selection, data processing and parameter estimation are discussed, and static and dynamic results of simulations are presented. Conclusions are drawn with regard to the adequacy of the model for such studies, and likely limitations on control of such circuits.IntroductionThe model developed here is intended to represent the grinding behaviour of the grinding circuit at the Lake Dufault division of Falconbridge Copper Mines Ltd. This circuit has been fully described elsewhere. At the time of the work described, the ball mill discharge was fed to a four-cell flotation bank , the tailings of which are combined with the rod mill discharge in the cyclone feed pump sump. As the emphasis in this study is on grinding behaviour, and as only I per cent of cyclone feed material is removed in these cells, no attempt has been made to include flotation behaviour in the simulation. One effect of the presence of flotation cells in the grinding circuit is, however, to necessitate somewhat finer grinding than might otherwise be needed: this will have effects on mill parameters.The paper is organized as follows. First the selection of models is discussed, paying particular attention to the problem of selecting simple, yet adequate, flow models for the mills. Then data gathering is described. The method of deriving mill model parameters is explained, and the results presented. Mass balancing of cyclone data and the determination of cyclone model parameters are described. The linking of the models into a full simulation is outlined, and sta tic and dynamic results presented. Finally, the results are discussed and conclusions drawn ."

Jan 1, 1980

By J. Lee, R. G. Rosehart

"The basic problem of arsenic contamination from mine water is discussed. Effective methods of removal involving chemical precipitation, activated carbon adsorption, ion exchange and reverse osmosis are discussed. As well as an economic analysis, detail is also paid to other ions in solution which are removed simultaneously.INTRODUCTIONThe object of this paper is to review arsenic and its removal from gold extraction plant effluents. The first method considered is chemical precipitation. A second method is sorption processes, such as ion exchange resins and activated carbon adsorption. A third method is the possible application of reverse osmosis for the treatment of mine waste waters containing arsenic.Arsenic pollution in the gold mining communities of Canada and Ghana have been extensively studies (l, 2). Lynch(3) Shabunin, Gutman and Kogan( 4), Hollo, Troth, Vennes and Illinigi (5) and Hau(6) have reported their removal methods of arsenic by chemical precipitation, ion exchange and biological methods. Their conclusions were that the precipitation with Fe2+ and Fe3+ ions was most effective.Scope of the ProblemInitial aspects of this research program involved a detailed analysis of the operation of a gold extraction plant located in Canada. The name and location of the mine is proprietary information. Figure 1 gives a basic process schematic with the main tailing streams identified.Table 1 gives information as to the various mine streams and their physical and chemical composition. In this study, primary attention is paid to the removal of dissolved arsenic from waste waters. Solids from this type of operation can always be back-filled. As could be anticipated, the dissolved As content of the primary flotation tailing stream is very low. The dissolved As level in the secondary processing stream and the roasting quench water is quite high. The reason being that at this stage of the process, the arsenic has been freed from the arsenopyrite forms."

Jan 1, 1972

By M. Dupuis

It has been previously demonstrated [l] that there is no obvious thermal balance related issue limiting the size of a Hall-Héroult cell. Yet, it is well known that a forced-air sidewall cooling system is part of the AP50 cell design [2], In the present study, the authors analyze the impact of thermal loading on the mechanical deformation of high amperage cell potshells. The effect of adding cooling fins or a forced-air sidewall cooling system is then assessed.

Jan 1, 2005

By M. Cai

A practical simple method is proposed to estimate the tensile strength (st) of strong brittle rocks from the strength ratio of R= sc/st = 8 sc/sci, where sc is the uniaxial compressive strength and sci is the crack initiation stress in an uniaxial compression test. 8 is the Griffith strength ratio and the term sc/sci accounts for the difference of crack growth or propagation in tension and compression in uniaxial compression tests. sci can be reliably obtained from volumetric strain measurement or acoustic emission (AE) monitoring. With the strength ratio R determined, the tensile strength can be indirectly obtained from the result of uniaxial compression tests. In addition, a practical estimate of the Hoek-Brown strength parameter mi is presented and it is suggested that mi = 12 sc/sci can be applied to strong, brittle rocks in high confinement zone and mi = 8 sc/sci can be applied to low confinement to tension zones. It is found that the predicted tensile strengths and Hoek-Brown strength parameter mi using this method are in good agreement with test data. The rock strength parameters like st and mi, which require specialty tests such as direct tensile (or Brazilian) and triaxial compression tests for their determination, can be reasonably estimated from uniaxial compression tests.

May 1, 2009

By L. Kraszewski

"IntroductionPortland cement is produced by burning an accurately proportioned mixture (raw feed) of finely ground limestone, silica, alumina, and iron oxide. The kiln discharge (clinker) is a chemically complex mixture of calcium silicates, aluminates and ferrites which when ground and blended with from 2 to 5 percent of calcium sulphate is sold as Portland cement.ManufactureThe most common raw materials are limestone and clay or shale. The raw mix is finely ground and heated to about (2600°F) 1430°C to decompose the calcium carbonate and combine the calcium oxide with silica, alumina and iron to form a partly fused clinker. The clinker is then ground, usually with a small proportion of calcium sulphate (gypsum), which regulates set. Cements with special properties are produced by varying the oxide composition and also by adding small amounts of chemical agents at the clinker-grinding stage or later.Clinker is manufactured by either wet or dry process methods. In the wet process, raw materials are prepared, blended and fed to the kiln as a water slurry (about 30-35% water) . In the dry process, raw materials are prepared, blended and fed to the kiln as a dry powder (about 0.5% water). The processing procedure is as follows:"

Jan 1, 1982

By R. S. Boorman, L. J. Surges

"Ore reserves at Brunswick Mining and Smelting totalled 101(106) tonnes grading 97 grams tonne-1 silver at the end of 1981. Silver is recovered as a byproduct in the copper, lead and bulk concentrates and is lost to the zinc concentrate and plant tailings. Recovery of silver for the year 1981 was 58,5%. The loss of potential revenue is in excess of Cdn $50(106) year-1 at current silver prices and milling rates.Silver is known to occur in solid solution in galena and as tetrshedrite. Evidence indicating the identity and significance of a third silverbearing mineral assemblage is reviewed and the distribution of silver losses is detailed. Characteristics of each the carrier which may be responsible for observed distribution, including size, surface quality, liberation and composition are considered, and the third carrier is shown to have possible implications for improved silver recovery by other Canadian producers as well as by Brunswick Mining.Silver tetrahedrite tailings distributed tailings and losses occur as coarse, free and as very fine unliberated galena in losses of the third carrier are between the zinc concentrate and are concentrated in the finest size fractions. Process alternatives for enhanced silver recovery by physical and chemical means are reviewed."

Jan 1, 1983

By Ludwig M. Strah

"Wear is a universal problem and is present in all cases wherein one weighted surface moves with or relative to another surface. A practical description of wear as applied to mineral processing plants is outlined.With the advent of higher material and maintenance costs, more attention is being focused on the field of wear resistant linings. The aforementioned is magnified today as the production facilities continue to be designed to handle larger daily capacities. These changes, higher costs and larger plant handling facilities have necessitated the introduction of different materials and designs to combat the never ending battle against wear.In order that wear be understood, it can be relegated to two specific types:1 - Mechanical Wear - due to movement of one loaded surface relative to another.2 - Chemical Wear - more easily defined as corrosionMechanical wearMechanical wear can be subdivided into two basic forms:A.,Material movementB.,Material impactMaterial movement Abrasion is the result of, as earlier stated, the straight move¬ment of one loaded material relative to another.Material impact Is the striking effect when a mass strikes another from various angles and at various speeds. Impact can be severe enough to permanently damage and distort the basic component installed to overcome impact."

Jan 1, 1983

By Jean-Luc Collins

"This new tool can be used as a quick guide f or the assessment of the potential economic wealth of any risky capital project. It does provide an unambiguous recommendation of the type ""go or no go"" to the decision-maker simply by comparing two different ratios profit/investment. One ratio determines the minimum value required to at least break even while the other measures a probable value based on the asymptotic theory of statistical extremes.Its application is briefly illustrated by means of an underground gold mine extension project, an oil sands mine project and a polymetallic open pit project.Once a favourable recommendation has been obtained then a detailed ""cash flow after taxes"" analysis can be carried out for the project.IntroductionMany tools are used in financial decision-making such as the payback period, the discounted cash flow, the internal rate of return and the wealth growth rate (Berry , 1971).These tools are useful and meaningful in evaluating normal projects closely related to regular business where the number of assumptions made is usually very small and where the cost of capita! is usually selected as a discount rate or a hurdle value. In situations where a significant number of assumptions have to be made,two problems can emerge, namely:I. the risk involved is underestimated leading to a potential financial disaster; or2. a good opportunity is lost because the approach used in evaluating the project is too conservative.Each assumption has its own degree of uncertainty and it is well known that combining uncertainties together can lead to a total uncertainty of critical proportion. The easiest way to account for risk is to increase the discount rate or the hurdle value, but this approach alone is quite subjective and can easily lead to the problems described above."

Jan 1, 1993