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By Gordon Sparks, Lyle Kajner

"An often over-looked component in the assessed value of a mining property is the value derived from the ability of the operator to limit financial losses during adverse economic times (i.e. low market price, high energy prices, etc.) by suspending operations. Overlooking the value of this type of operating flexibility when conducting mine investment analysis may negatively bias the risk profile for the investment by over estimating the investment's downside potential, thereby effectively undervaluing the investment. This paper illustrates the nature of the value of operating flexibility and discusses how it may be explicitly quantified within the context of conducting stochastic mine investment analysis. IntroductionMining properties are evaluated using an array of techniques ranging from simplistic non-discounted payback calculation s to sophisticated, discounted-stochastic simulation. Stochastic simulation analysis is perhaps the most robust mine investment analysis technique as it not only provides an estimate of the expected value of the property, but also quantifies the associated risks (for examples of stochastic mine investment analysis, see: Billingsley and Yaychuk, 1986; Gentry and O'Neil, 1984; Munro, 1977; or Harris, 1970).The quantification of risk is important as it provides the necessary yardstick required to allocate the corporation's resources efficiently. Resources are said to be allocated efficiently when the corporation's expected long-term financial reward is maximized while at the same time minimizing its risk (see Hertz, 1968; or Markowitz, 1952 for in depth discussions on efficiency as it relates to investment policy). The efficient allocation of resources should be the objective of any rational corporation. Therefore, rational corporations should employ stochastic evaluation techniques when screening their investments."

Jan 1, 1992

By D. A. Riva

"The Line Creek Project is located in southeastern British Columbia, approximately 25 kilometres north of Sparwood. The design is to produce a total of2.7 million tonnes of coal annually. This is made up of1.4million tonnes of thermal coal and 1.3 million tonnes of metallurgical coal.Construction commenced in the spring of 1980 and mining operations began in July 1981. The thermal processing plant, maintenance and dry facilities, as well as extensive road and bridge construction, were completed in early 1982. A collective agreement was signed with the International Union of Operating Engineers, Local 115, in June 1981.The first unit train left Line Creek on February 18, 1982 with a load of thermal coal bound for the Ssangyong Corporation in Southern Korea. It was the start of a ten-year contract to supply 350,000 tonnes annually to fire their cement kilns. Additional contracts for 750,000 tonnes will fuel the boilers of Korea Electric Company's San Chon Po and Go-Jeong power stations. Metallurgical coal shipments are scheduled to leave the Roberts Bank port in Vancouver in April 1983.Tracking an introductory presentation given at the 1981 CIM Annual General Meeting in Calgary, this paper highlights the salient developments by which ""The Line Creek Project"" has progressed during the past year to the"" Line Creek Operation"". Line Creek has com e on stream as scheduled and will meet all contractual commitments pertaining to timing, volumes and quality for thermal coal. The first train load left the plant in mid-February, and the first boat load to Korea departed Roberts Bank in mid-April. Metallurgical coal deliveries will commence in April 1983."

Jan 1, 1982

By L. D. Smith

"Those who submit competing proposals for projects seek to present senior management with complete and fully supported material that will not fail under questioning. Hopefully, misleading notions and omissions will have been minimized and there will have been testing of the assumptions regarding the economic, social and political environments.A capital project evaluation team can do management and itself a service by including a sound approach to the impact of inflation (and its twin problem, interest) on a project and a great disservice with an inappropriate approach to inflation.InflationHandled deftly, inflation can alter a project evaluation to show almost any result the handler desires. It must be a constant source of frustration for design people and cost estimators to spend weeks perfecting the technical aspects of a project in order to minimize costs, only to have all of their efforts set awash in a sea of financial and economic assumptions that submerge all of the detail. In all of this, inflation is perhaps the largest offender, with inflation criteria often being brought to bear at the last minute, almost as an afterthought. Perhaps this tardiness reflects the difficulty of the subject and the belief that senior management will take its own approach to the problems of inflation. Such a belief is unfair to senior management, for it is entitled to not being misled by omission. It is entitled to the full use of the skills of the evaluating team, including reasonable assumptions of the impact of inflation.Working in a consulting context, one has the opportunity to participate in the evaluation of a large number of projects."

Jan 1, 1990

By R. E. G. Caines, P. Alport

"Operating heavy equipment in Labrador, where the winters are 8 months long and the temperature frequently drops below -40°F (-40°C) for days and sometimes weeks presents unique problems in both the operation and maintenance junctions. Winterization programs must be well designed and implemented at the proper time. These programs must include the proper selection of fuel oil, engine oil, hydraulic oils, greases, cooling system fluids, etc. More often than not, modifications have to be made to the original equipment in order that it can be operated safely and economically in the Canadian North. Manufacturers usually design equipment for a less harsh environment and the user makes adaptations by trial and error.Operators have to be trained for the proper operation on ice- and snow-covered roads in an open-pit mine. Special emphasis must be put on haulage road conditions. In this paper, the authors will cover some specific maintenance procedures, equipment modifications and operator training problems experienced by the Iron Ore Company of Canada in its open-pit operation in Labrador.IntroductionT he Iron Ore Company of Canada is engaged in open-pit mining , concentrating and pelletizing of iron ore. The company operates in two provinces, Quebec and Newfoundland (Fig . 1) . The Knob Lake operation "", based in Schefferville, Quebec, has mine sites located both in Labrador and Quebec . The Caro l Lake Project is situated in Labrador, 25 kilometres east o f the Quebec border at Labrador City. The Carol operation mines, concentrates and pelletizes it s o re before rail transportation to the seaport o f Sept-lies via the Quebec North Shore and Labrador Railway."

Jan 1, 1984

By Claudia Gasparrini

"Silver occurs in about 200 minerals in variable amount s. Silver ores usually have 5 or 6 and in some instances as many as 10 species of silver minerals. All these minerals may have different flotation and leaching properties and should be correctly identified for successful recoveries. Grain size and host minerals which are critical in gold recovery, are not always as important for silver minerals.IntroductionMineralogical factors affecting the metallurgy of silver are , as for other metals: (i) the silver-bearing mineral s ; (ii) their grain size, and when dealing with very fine sizes; (iii) their host minerals; and (iv) the association they form with the silver-bearing minerals. Of these, the silver-bearing minerals are more often the cause of problems during recovery as opposed to gold whose metallurgy is generally more affected by grain size and host minerals. The problems derive mainly from the complexity of the silver mineralogy: over 200 minerals exist bearing the element in major, minor and variable amounts.As a member of group I-B of the periodic table, silver forms extensive so lid solutions with the other two elements in the same group , copper and gold. It combines with sulphur, tellurium and selenium in covalent bonds and with chlorine, bromine and iodine in ionic bonds. Where the fluid composition, temperature and pressure during crystallization allow it, silver also combines with arsenic, antimony, lead, bismuth, tin, mercury, indium, thallium, and germanium in many instances as a minor element in sulphide , sulphosalt and native element minerals. Cations which silver replaces to a lesser extent than copper and gold are iron, manganese, zinc and probably nickel and cobalt."

Jan 1, 1984

By H. E. Pawson

"COMMON METHODS OF ELIMINATION: The four methods most frequently used to dispose of cyanide wastes are:1. Oxidation2. Dilution with water or with cyanide free wastes3. Acidification and dilution of resulting gas with air4. Alkaline ChlorinationMost operators practice a combination of the first two methods, allowing oxidation and dilution of cyanide waste in tailings ponds. Then, pond effluent is introduced to a stream for further dilution andoxidation which is expected to take care of the cyanide. This method oftreatment does work to a certain degree. Atmospheric oxidation in tailings ponds and in receiving streams chemically breaks down the cyanide radical to form carbon dioxide and nitrogen.2(CN) + 202 2 CO2 + N2The monetary advantage to this method is obvious to the operator but too frequently though, climatic conditions are ignored. Length of winter, and reduced flow of the receiving stream in summer, adversely restricts the result of this combined method. For those of us who rely mainly on dilution it would be wise to remember that 70 million pounds of water are required to dispose of one pound of sodium cyanide (1).The third method outlined involves addition of acid in a closed vessel and venting resulting gas to atmosphere with or without air dilution by mechanical means. Cost, safety and some form of secondary treatment to complete destruction of cyanide remaining in the solution usually make this method prohibitive.The alkaline chlorination method is the one most commonly accepted for treating cyanide bearing wastes since it is felt that cyanide is completely eliminated in this manner."

Jan 1, 1973

By P. Trudel, É. Cabot, L. Cabot

"A modular gold processing unit (MGPU) was designed, installed and operated over an eight-month period by RSW-Béroma at the Granada mine located near Rouyn-Noranda, Quebec. A description of the project geology, plant set up, as well as exploitation results, including productivity and profitability curves, are given for a small-scale mining operation in comparison with larger ones. IntroductionSmall-scale mining (SSM) is a widespread activity in Africa, Mexico, Central America and South America, where numerous small mineral deposits are exploited manually or by semimechanized methods. On the other hand, SSM is almost absent in Canada, where the mining industry traditionally exploits large deposits, using concentration plants with capacities of many thousands of tonnes per day. However, many small gold (and other metallic or industrial mineral) deposits are known in Canada. Their reserves are too small to justify the cost related to the construction of a standard mill and, if they are remote from a custom milling facility, they remain unexploited. With this in mind, RSW-Béroma has developed the modular gold processing unit (MGPU) that allows the profitable exploitation of small mineral deposits. The MGPU is the perfect tool for SSM and its main advantages are a much lower capital cost than a standard mill and its portability, which makes it easy to transport and reinstall on another site, once the exploitation of a small deposit is terminated. The denomination MGPU will be used hereafter in the text as it was primarily designed for gold deposits, although it must be kept in mind that this portable plant can be adapted to other mineral substances."

Jan 1, 2003

By R. A. Leveille, M. D. Doggett

"Economic returns for the copper industry have been assessed by building cash flow models for each of the 100 new mines brought into production over the past 20 years. Ninety-one of the 100 new mines returned the assumed 8% cost of capital and generated a positive net present value (NPV) at the development decision point. Economic criteria for individual mines are highly variable with NPV ranging from -$111 million (-$111M) to +$3850M (all money values are presented in United States dollars) and internal rate of return (IRR) ranging from -8% to +95%. The copper industry collectively would generate approximately $39 billion dollars in NPV through the development of the 100 new mines.The returns to exploration ($174M per deposit) were measured by deducting the cost of exploration per deposit ($221M) from the returns to development per deposit ($395M). Overall, the copper business has provided positive returns to exploration. However, the variability in returns across deposits means that only 41 of the 100 new mines can carry the average cost of exploration. The long lead times and high costs associated with exploration result in only those deposits with large amounts of contained copper being able to cover the average finding cost of the industry.The returns to development and exploration are shown to be highly sensitive to the cost of capital and metal price assumptions. With respect to deposit type, porphyry deposits are both larger (NPV) and exhibit lower profitability (IRR) than the nonporphyry deposits. On a geographic basis, returns to development and exploration are higher in Chile than elsewhere, reflecting the larger average deposit size and lower average exploration cost per deposit."

Jan 1, 2009

By B. McKevitt, P. Abbasi

The ion exchange process (IX) is applied in the mining industry for the removal of impurities from process streams, treatment of waste solutions prior to disposal and the recovery of valuable metals. Extensive studies have been performed with the goal of modeling of IX for the case of a single metal loading onto iminodiacetic resin in the hydrogen form. However, in a real system, a resin may be saturated by impurities (iron, calcium, magnesium, manganese), which are then displaced by the metal of interest. The present study provides an insight into the Fe2+ loading process onto iminodiacetic ion exchange resin under the infinite solution volume condition. The study involves the measurement of iron loading under a variety of experimental conditions as well as an attempt to model the loading process using the hybrid correlation advanced by McKevitt (2012). The importance of the experimental and modeling work are discussed in the context of resin in pulp recovery of nickel.

Jan 1, 2014

By A Falter

Gyroscopic surveying instruments, which apply the physical law of a gyroscope, are being used for deter-mining the azimuth of lines with a high degree of ac-curacy. In the past ten years, gyro-theodolites have been introduced widely for underground orientation in the mining industry of Russia, Germany and South Africa. Gyroscorpic methods eliminate awkward procedures of conventional shaft plumbing, and provide more safety, excellent control and the highest precision at any point under-ground without interference with hoisting operations. The advantages of gyroscopic orientation in geodetic surveys become obvious in primary and secondary triangulation, in the determination of co-ordinates of single triangulation points, using the method of trigonometric re-section and intersection, and when traversing over long distances or in areas with obstructed view. Other fields of application are found in geophysical surveys and in the orientation of technical objects; e.g. radar stations, relay stations and ballistic missiles.

Jan 1, 1964

By R M. Ennis, J. C. Botham

This paper is one of a series pre-pared to study the role of fuels and reductants in metallurgical processes, especially from the viewpoint of Canadian requirements. The object of these studies is to provide a reason-ably authoritative interpretation on the interrelation of fuels in light of the considerable changes that have taken place in the Canadian energy field during the past few years. Previous papers in this group have dealt with the problem generally, and specifically in terms of the development of the iron and steel industry of Western Canada. These latter papers, presented at the Symposium on Iron and Steel in Western Canada held in Edmonton, Alberta, on September 8-9, 1959, surveyed the ferrous processes of interest for use in Wes tern Canada, especially with regard to solid fuel requirements. At that time it was evident that there was a need for a similar study of the fuels aspect of the non-ferrous metals industry.

Jan 1, 1961

By W. A. Dixon Edwards

Industrial mineral production in Alberta, worth $468 million in 1997, comes from a dozen types of industrial minerals, mined by about 400 producers. Cement and lime from Paleozoic limestone formations exposed along the Rocky Mountains account for the greatest production value. Sand andgravel is the primary source ofmineral aggregate. Almost two-thirds of this aggregate is consumed in the Edmonton and Calgary regions. Sulphur produced at 48 sour gas processing plants and two oil sands plants was valued at $84.8 million in 1997 and accounted for 80% ofCanadian sulphur production. Four companies solution mine the Elk Point salt beds to produce chlor-alkali chemicals, industrial salt and sodium chlorate. Natural brine is also produced as a dust control product. Al $22 million, peat moss is a major industrial mineral product in Alberta. Other minerals with noteworthy production include shale, stone, silica and ammolite. The commodities with the greatest development potential are diamond, silica and oil sands tailings by-product minerals.

Jan 1, 2001

By John J. Barakso

A summary of geochemical dispersion processes is presented. Secondary and tertiary dispersion of uranium was examined at several uranium prospects in British Columbia. The vertical migration of uranium from bedrock (primary dispersion) through overburden into the various soil horizons, and into snow and plants, was studied, and relationships were sought to explain the dispersion patterns in the secondary and tertiary environments. Soil developments were examined to obtain information on factors affecting the dispersion of uranium in soil profiles and tertiary substances; samples were analyzed for a number of elements. Biogeochemical data indicate that plant geochemistry is a possible exploration aid in areas of heavy overburden owing to the high selectivity of certain plants for specific elements. Some new data on the geochemistry of snow are discussed as a matter of research interest in the tertiary dispersion of uranium. Analytical techniques and problems are discussed, particularly extraction techniques, which must be carefully chosen to give reliable information on uranium dispersion.

Jan 1, 1979

Lonmin RoM ball mills are treating two types of feed ore produced by conventional mining and mechanised mining methods. It was reported that reduction in mill throughput was observed when treating the mechanised mining ore. Detailed grinding surveys were conducted for troubleshooting. Ore samples were collected for breakage characterisation using a JKRBT based on different particle density components. XRD analysis was conducted to investigate the association of minerals with density components. The plant surveys and the breakage characterisation tests all suggested that the two mining methods did not significantly affect either the ore breakage properties or the RoM mill performance. Instead, the mill discharge open area exerted a remarkable influence on mill throughput. The RoM ball mill operated at Lonmin K4 Concentrator has been proven to be a versatile mill that performed stably with variations in feed size distribution and feed ore changes by different mining techniques. The reasons are elucidated by the multi-component breakage characterisation and the plant surveys data.

Jan 1, 2012

By K. Aziz

The solutions to unsteady-state gas flow in a radial system have been reviewed in order to aid in the interpretation of drawdown data. It has been the practice to evaluate the time and rate conversion constants, directly or indirectly, by using reservoir data. This paper presents a method of determining these constants from drawdown data. A simplified approach to the de-termination for the various boundary conditions is presented. An example of a problem which illustrates the use of this theory appears in the appendix. UNSTEADY-STATE FLOW EQUATION The solution of any unsteady-state flow problem involves (1) the continuity equation, (2) the equation of state of the fluid, (3) the equation of fluid motion and (4) the boundary conditions. For the Darcy flow of a gas in the horizontal radial plane, the equation is when the viscosity, compressibility and permeability to gas flow may be assumed constant and the medium

Jan 1, 1963

By M. Kucharski

The model of the Outokumpu direct-to-copper process deals with a steady-state process the parameters of which do not depend on time. To give a prediction for the process outcome, "a modified black box" method, which ignores most of the chemical reactions in the furnace, was used. This method takes input and output parameters into consideration. The presented model describes the Outokumpu direct-to blister process in the form of the set of linear equations which give mass and enthalpy balances as well as the distribution of elements between blister copper and slag. However, only major substances where quantities in the feed charge exceed a certain level (for example 0.5 kg/ lMg of smelted concentrate) are taken into consideration. Minor elements are distributed among slag and metal phases in a different way. Some of the equations are derived from distribution coefficients. The value of distribution coefficients can be calculated from plant production data.

Jan 1, 2007

By A. Alfantazi

Recently, titanium and its alloys have been the materials of choice for the liner and internal components of autoclaves used to extract Ni and Co from laterite ores. There have been many corrosion incidents ranging from localized attacks due to scale formation or welding, to damage caused by pockets of concentrated acid. Most of the literature focuses on methods to avoid the corrosion altogether. Little has been published to increase awareness of the chemistry at these conditions. For this paper, a literature review of the thermodynamics of titanium was undertaken to decipher the slew of information available. E-pH diagrams were constructed from select data and compared with the results of electrochemical experiments. Since nickel laterite leaching takes place in sulphuric acid, and in many cases chloride concentrations are very high, the Ti-H2O, Ti-Cl--H2O and Ti-SO4---H2O systems were considered.

Jan 1, 2004

By W. D. C. MacKenzie

IT IS almost exactly fifteen years since the discovery of the Leduc oil field and, as this luncheon is part of the Thirteenth Annual Technical Meeting of the Institute's Petroleum and Natural Gas Division, it seems, therefore, a singularly appropriate time to discuss the theme which the program committee has suggested for the occasion -the progress of the Canadian oil industry during the fifteen years since the discovery of the Leduc field. As you will see, I plan to take a few minor liberties with this suggested theme. I shall present ample evidence of growth and progress, but, at the same time, I want to refer to some areas where progress has been anything but conspicuous and to see what can be learned from these areas for the future. The achievements of the Canadian oil industry since the Leduc discovery in 1947 have been substantial, and the public is relatively familiar with the more spectacular developments.

Jan 1, 1962

By E. C. W. Perryman

BEFORE describing the methods used for fabricating uranium into various shapes and sizes it is necessary to illustrate briefly the unusual conditions under which uranium has to operate when used as a fuel element in a reactor. During reactor operation, for every fission that occurs two atoms of intensely radioactive fission products are produced together with two or three neutrons. The neutrons that are ejected possess several m.e.v. of energy and when one of them strikes an atomic nucleus, that atom acquires up to 105 e.v. of kinetic energy. This is large enough to displace the atom from its lattice position and send it shooting through the crystal, displacing other atoms out of their lattice positions. The net result is that a large number of vacancies and interstitial atoms are formed within the crystal lattice which sometimes have profound effects on the physical and mechanical properties of the material in question.

Jan 1, 1957

By H. L. Noblitt, Pauline Moyd, Louis Moyd

The deposit, which forms a ridge -adjacent to the York river, in Mont-eagle township, is held by Monteagle Minerals Limited, of Toronto. The ore is in a Precambrian gneiss which is composed of nepheline, scapolite, andesine and microcline feldspars, muscovite and biotite micas, and -corundum. The major orebody is tabular and is exposed for 1,200 feet along the crest of the ridge. It aver-ages about 90 feet in thickness, dips at about 70°, and was intersected by drilling at a vertical depth of 600 feet. The deposit was prospected for corundum in the early 1900's. Recent exploration was undertaken to deter-mine its potential as a source of high-alumina ceramic material, with by-product corundum and white mica. The program included prospecting, mapping, trenching, diamond drilling, bulk sampling, beneficiation research, a large-scale beneficiation test, product evaluation, market investigations, and plant design. Reserves, to a depth of about 300 feet, are estimated at about 3 million tons.

Jan 1, 1962