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By W. M. Williams

"Although manganese is a metal virtually unknown to the layman, it is hardly necessary to point out to the engineer the importance of manganese in modern metallurgy, an importance intimately linked with iron (and steel), the basic materials of engineering construction for hundreds of years and certain to remain so for long into the future. World steel production will approach and perhaps reach 1 billion tons/year in the 1980s; with a manganese content between 0.5% and 1 % in ordinary steels, and more in specialty steels, manganese use worldwide will soon approach 15 million tons annually. Manganese was discovered and isolated in Sweden in 1774 by Karl Wilhelm Scheele (who also discovered molybdenum), but the element was only of scientific interest for several decades. By the early part of the nineteenth century, however, manganese oxide had become commercially available and was in use for colouring glass and for the production of chlorine. Commercial application in metallurgy appears to have been limited to the manufacture of crucible (or ""cast"") steel, a highquality product made by carburizing wrought iron, and melting it in small batches to make ingots which could be rolled and used for special applications, e.g. for the manufacture of fine tools or for ""steeling"" the cutting edges of implements such as wrought iron axes and chisels.* However, it was not until Bessemer's epoch-making invention of cheap steel in 1856, and the dramatic expansion of the steel industry thereafter, that manganese assumed the importance that it holds in modern steelmaking."

Jan 1, 1999

By W. G. Wahl

The Slave Province, a segment of Archean continental crust, migrated west and north from the northern flank of the Superior protoshield shortly after the Kenoran orogeny. The probable cause of migration, the path it followed and the cause of its coming to rest can be inferred from the Bouguer gravity data. The migration caused an indentation in the edge of the Superior protoshield which precluded the development of the Hudsonian orogenic front under Hudson Bay. As the nickel and asbestos deposits of the Thompson Nickel Belt and the New Quebec Nickel Belt are restricted to this orogenic front, no such deposits would occur under Hudson Bay.

Jan 1, 1973

By Allan J. Guse

The primary limiting factor for hoisting capacity from great depths is the self-weight of the typical steel wire ropes used for mine hoisting. Steel wire ropes possess properties making them very suitable for mine hoisting including high strength and durability, but have the negative characteristic of being relatively heavy in comparison with their strength. Also, as hoisting depths increase, the service life of steel wire ropes decreases due to the higher stresses and physical effects on the ropes. The significantly higher strength-to-weight ratio of synthetic ropes compared with steel ropes offers the primary advantage of hoisting a larger payload with a similar size rope and hoisting plant. The beneficial properties of synthetic ropes could be used to improve the overall economics of deep underground mining both for new deep shaft projects and for existing mining operations expanding to deeper orebodies. A research and development program has been initiated to evaluate the suitability of a fully synthetic rope for the mine hoisting application, including rope discard methodology and NDT testing. The three phases/projects are: 1) proof of concept with focus on coilability under load (successfully completed in 2012); 2) high speed and load durability optimization & NDT Development; and 3) in-situ mine trial.

May 1, 2013

By Ting Lu, Gerard Laman

"This document compares the systems of coal classification described under ASTM standards used in Canada to GB standards used in China. A preliminary connection of metallurgical coal classes was set up between the two classifications. In GB classification system, there are nine metallurgical coal groups, namely PS, SM, JM, FM, ½ ZN, RN, 1/3 JM, and QM used in coal blending for coke production. PS coal is almost equivalent to the Low Volatile Bituminous coal; SM, JM, and FM coal groups fall into Low to Medium Volatile Bituminous range; ½ ZN, RN, 1/3 JM, and QM are equivalent to bituminous coal with medium to high volatile matters; QF contains higher volatile bituminous coal compared with High Volatile Bituminous coal. The caking properties commonly used in respective country are also compared in this document. These properties include free swelling index (FSI) and maximum fluidity used in Canada, as well as caking index (GR.I.), and the maximum plastic layer thickness (Y) mainly employed in China. It has been observed that the log of the maximum fluidity has a stronger correlation with the caking index than the Y values. Metallurgical coal processing strategy and typical coking coal product qualities are briefly discussed in the last section of this paper. Currently there is a trend to use heavy medium cyclone in both countries. In Canada the conventional two-product cyclone technology is the preferred practice; whereas in China the three-product heavy medium cyclone arrangement is widely used.INTRODUCTION Coal can be simply classified by applications into two categories: i) thermal coal used to provide heat energy in combustion, and ii) metallurgical coal which is converted to coke, in a carbonization process, and used mainly in the iron and steel industry. Metallurgical coal contains even higher heating values than thermal coal. In addition, it presents unique plastic properties during carbonization which in turn produces a porous solid, high in carbon referred to as coke. Coke is one of the most important raw materials in the iron and steel industry."

Jan 1, 2012

By M. Abzalov

"Control of analytical data quality is usually referred to in the mining industry as Quality Assurance and Quality Control (QAQC), and involves the monitoring of sample quality and quantification of analytical accuracy and precision. QAQC procedures normally involve using sample duplicates and specially prepared standards whose grade is known. Numerous case studies indicate that reliable control of sample precision is achieved by using approximately 5% to 10% of field duplicates and 3% to 5% of pulp duplicates. These duplicate samples should be prepared and analyzed in the primary laboratory.Bias in the analytical results can be identified by inclusion of 3% to 5% of the standard in each sample batch. Several different standards are used, with values spanning the practical range of grades in the actual samples. A blank (a sample in which the concentration of metal of interest is below detection limit) should also be included. Standard samples alone cannot identify biases introduced during sample preparation, and therefore approximately 5% of the duplicate samples (coarse rejects and pulp) should be processed and assayed at another, external, reputable laboratory.This paper discusses techniques used for estimation of errors in precision and accuracy, and overviews diagnostic tools. It is shown that one of the most commonly used methods, the Thompson-Howarth technique, produces consistently lower results than other methods. These results reflect the nature of this method, which relies on the assumption of a normally distributed error, and thus produces biased results when errors have a skewed distribution. This study concurs with the suggestion of Stanley and Lawie (2007: Exploration and Mining Geology, v. 16, p. 265-274) to use the average coefficient of variation (CVAVR(%)) as the universal measure of relative precision error in mine geology applications: Le contrôle de la qualité des données analytiques est habituellement désigné sous l’appellation d’Assurance et Contrôle de la Qualité (ACQ), elle implique le suivi de la qualité des échan¬tillons et la quantification de la reproductibilité et la précision analytiques. Les procédures des pro¬grammes d’ACQ impliquent habituellement l’usage de duplicata et de standards analytiques dont la teneur est connue. Plusieurs études de cas indiquent qu’une bonne fiabilité du contrôle de la précision des échantillons est atteinte par l’usage de 5% à 10% de doublons sur le terrain et de 3% à 5% de doublons de pulpe. Ces duplicata devraient être préparés et analysés au laboratoire principal.Un biais des résultats analytiques peut être identifié par l’inclusion de 3% à 5% d’échantillons standard dans chaque envoi d’échantillons. Plusieurs standards sont utilisés, avec des valeurs couvrant l’étendue des teneurs habituellement rencontrées dans des échantillons réels. Un blanc (un échantillon dans lequel la concentration d’un métal donné est sous la limite de détection) devrait aussi être inclus. L’emploi exclusif d’échantillons standards ne permet pas l’identification de biais résultant de la préparation des échantillons, de telle sorte qu’environ 5% des duplicata (rejets grossiers et pulpes) devrait être traités a un autre laboratoire indépendant et fiable.Cet article passe en revue les techniques utilisées pour évaluer l’erreur liée à la précision et a la reproductibilité, et effectue aussi un survol de divers outils diagnostiques. Il ressort de cet examen qu’une des techniques les plus fréquemment utilisées, la méthode Thompson-Howarth, fournit des estimés systémati¬quement inférieurs à ceux provenant des autres méthodes. Ces résultats sont un reflet de la nature de cette méthode, laquelle assume une distribution normale de l’erreur, biaisant ainsi les résultats lorsque l’erreur présente une distribution asymétrique. La présente étude recommande de privilégier l’usage du coefficient moyen de variation (CVAVR(%)) en tant que mesure universelle de la précision relative de l’erreu"

Jan 1, 2008

By Jim Lauder, Russ Calow, Ken Maley, Michael Ounpuu, Stuart T. Caverly

"Stuart T. Caverly, Section Head XRF Laboratory, Jim Lauder, Systems Engineer, Russ Stuart T. Caverly, Section Head XRF Laboratory, Jim Lauder, Systems Engineer, Russ Concession Street, Lakefield, Ontario KOL 2HOAbstractOn-stream X-ray analyzers have become an integral part of modem milling operations. The calibration of these instruments is not difficult but must be performed carefully and with consideration for the principles of X-ray spectrometry. A discussion of successful calibration procedures as well as examples of several common mistakes is presented.IntroductionOn-stream X-ray analyzers (OSA) have become an integral part of modem mineral dressing plants. Advances in instrumentation and computer software make the analysis of process streams fast, accurate and precise. Proper instrument calibration that respects the fundamentals of X-ray spectrometry is essential if the data generated are to be reliable. Often the importance of this task is underestimated and delegated to a person with inadequate XRF training. Successful OSA calibration is the result of careful, systematic procedures.On-stream analysis is perhaps the most important tool that has been provided for the concentrator metallurgist. Combined with powerful, low cost PC's and distributed control systems, real-time elemental analysis affords today's metallurgist many opportunities to troubleshoot and optimize his process.Before OSA, operators had to be very experienced if they were to achieve good results. Even with hourly grab samples, most changes in control approach would still be based on visual cues from the circuit and gut instinct. Real-time analyses have changed that completely.The last two decades have seen a persistent drive to reduce production costs. Operations utilizing OSA have been the most successful in this endeavor. Direct benefits from the application of OSA are fairly obvious. Operators are able to make incremental changes in operational parameters (e.g. reagent addition, pH, cell level), and immediately monitor the effects. Variations in the characteristics of the mill feed can be identified and addressed immediately. More progressive operations have linked analyses to control loops to adjust process setpoints ( e.g. reagent additions), and to change them automatically according to formulas based on previous experience."

Jan 1, 1996

By T. W. Wlodek

"AbstractIn this paper a new type of durable 'spiral-rolled' drill set is introduced and its performance discussed. Efficient and economical mine drilling-depends to a great extent on durability of the drill-set employed. Premature failure of this element damages the drill bit and is costly when tungsten carbide bits are used.Time of drilling of 'spiral-rolled' drill sets introduced at present in Canada is considerably larger than for the presently used drill steel, but laboratory simulated service tests and practical field tests show that the 'drilling life' of the spiral-rolled drill set is several times that of ordinary drill steel.Some features of differential plastic deformation and differential surface rolling, so called 'spiral-rolling', are given.Relations between the drilling machine drill set and characteristics of the ore are discussed. The effect of shims on conical drill rod attachments, the mechanism of failure of drill steel, .and stresses during mine drilling, are analysed.IntroductionIN MINE DRILLING operations, the main interests are: the drilling machines as a source of working energy, the drill set as the tool transferring the working energy to the cutting edges of the bit, and, finally, the drilling characteristic of the .ore or waste rock.This paper includes a review of the possibilities of metallurgical and mechanical improvements in the drill set, with particular attention to drill steel and the attachments.For economical and efficient mine drilling operations, a durable drill rod, attachment, and drill bit are essential. Premature failure of any of these parts interferes with mining operations and is costly."

Jan 1, 1955

By G Anders

Underground tests of slusher cables at first might seem to be quite simple and inexpensive. They do, however, take a long time and give results that may be ambiguous and unreliable. Also, because underground test conditions are not exactly duplicable, tests carried out at different times or in different mines could not be compared. An attempt was made to develop a laboratory test method that would provide for all factors affecting slusher cable performance underground in such a way as to make it possible to achieve comparable results from different series of tests by exactly duplicating test conditions. Such a method should also make it possible to vary individual factors systematically in order to give a proper assessment of the effect of changing conditions on cable performance. A set of tests, comparing the same two types of cable both underground and in the laboratory, is described. AN assignment at the Algom Nordic mine called for the comparison of two types of %-in. slusher

Jan 1, 1964

By M. F. Almeida

"Due to the randomness of all factors influencing the sintering operation, a two-stepped procedure is proposed to find the best way of using stocked fines at a plant producing Fe-Mn alloys for the steelmaking industry. The approach is based on the following: (1) predict the result of the sintering operation by establishing the best multilinear regression model using some of the characteristics of the loaded material; and (2) find the best solution under a minimizing cost criteria by solving a linear optimization problem using the regression equation plus constraints on the feed and product. IntroductionSome tests carried out using 20% to 30% of sinter in the material loaded into a 60 000 KVA Tysland-Hole electric furnace producing Fe-Mn alloys for the steelmaking industry indicated: (1) a meaningful decrease in the off-gas temperature and, consequently, a better energy use due to the material higher porosity; (2) more uniform heat distribution as a consequence of the electrode reaction zone enlargement; (3) an improved furnace control resulting in a smoother operation; and (4) a decrease in gas production facilitating the off-gas treatment. For some years, this plant used only the coarse fraction of the Mn ores, thus stocking all the received and own-generated fine particles. In view of the mentioned results, a strategy for increasing the use of stocked fines was formulated, including a step where it was necessary to decide which components and respective quantities should be used in the blends to be sintered (Almeida, 1984).It is well known that several factors affect productivity and energy consumption in sinter production, also influencing the product quality. Raw materials characteristics, namely chemical and size composition, affect permeability to gases and may or may not allow a deeper bed. In general, finer ores decrease permeability, increasing electricity consumption by fans, but due to their higher specific surface area, react more completely with other components in the mixture. For coke granulometry, a compromise must be obtained in order not to burn it too quickly nor to widen the flame front, therefore decreasing productivity. Decreasing coke in the blend also acts in sinter bonding, decreasing its consistency and increasing crushing and return fines. Moisture addition also influences components mixing, pre-agglomeration, bed permeability and, consequently, sintering productivity. Therefore, optimum conditions must be established for both a given sintering plant and the components in the feed (Dawson, 1993)."

Jan 1, 1998

By Z. Tang

A collaborative project was performed between NRC Institute for Fuel Cell Innovation and MagPower Systems Inc, to develop a cost effective fabrication process to manufacture the anode for magnesium-air fuel cell with improved performance. A novel fabrication process was developed, which resulted in a porous microstructure with increased surface area, instead of the traditional solid structure. This porous anode greatly increased power density in the magnesium-air power source. This fabrication process is very simple and cost effective. Especially, this process makes it convenient to incorporate different alloying additions, as well as hydrogen inhibitor and electrolyte management additive into the anode. The anode composition was designed so that micro galvanic cells were formed as current is drawn out of the fuel cell, and resulting increased dissolution rate of Mg. It is feasible to incorporate hydrogen inhibitor and electrolyte management additive into the porous anode, and the anode with some kinds of inhibitors exhibited improved electrochemical performance. This paper describes the microstructure and electrochemical performance of anodes with designated porous structure and alloying additions. Furthermore, quantitative kinetics analysis of the obtained I-V curves and electrochemical impedance spectroscopy were carried out to clarify the mechanism.

Jan 1, 2005

By G Anders

The effectiveness of two types of powder used in long-wall slashing was compared. The evaluation of the results can serve as a good example of how the application of statistical methods to underground test data can help to minimize the number of tests to be carried out. The conclusions are stated concisely, including a definite assessment of the reliability of the tests. Introduction AN assignment at the Algom Nordic mine called for a performance comparison between 70 per cent Cilgel B and 75 per cent Dygel in longwall stope slashing, particularly taking into account, in both cases, the build-up of bootlegs as dependent on hole deviation. Stopes were usually 8 to 10 ft. high and inclined at about 17 degrees. Starting from a raise, they were widened by consecutive longwall slashes to 60 ft., and, al-lowing for drift pillars, were approximately 300 ft. in length along the incline.

Jan 1, 1964

By M. K. Gangal, M. A. Stoakes, A. E. Hall

"The major features of the CANMET thermodynamic mine ventilation network program, developed by the Mining and Mineral Process Engineering Department of the University of British Columbia for the Canada Centre for Mineral and Energy Technology (CANMET), are described.The program is designed for use by deep Canadian mines in planning ventilation flows where the effects of auto-compression of air, moisture lift work and natural ventilation are significant. Routines to simulate stalled fans and give an optional cost printout have been included in the program.A supplementary plotting program used to simplify data interpretation is also described.The program is described with a test data example of a deep mine. It is a valuable analytical tool which can assist ventilation engineers to simulate many alternative ventilation strategies at a low cost in a very short time.IntroductionCanadian underground mines are becoming deeper and more extensive. The use of more and larger diesel-powered equipment increases the amount of air required to be circulated in these complex systems. These effects, coupled with the increasing unit cost of the energy required for mine ventilation, require that the air is used with maximum efficiency.Optimum airflow distribution can be obtained by using network computer programs enabling engineers to plan future ventilation systems based on quantitative assessments. The programs used for deep mines must make allowance for the change of air density with depth, as the assumption of incompressible flow leads to serious errors. Natural ventilation effects may vary with depth and from part to part of the mine; this must be catered for by the program. The air moisture content changes throughout the circuit and a significant portion of the fan work may be used in removing moisture from the mine; as this work varies directly with the flow, a suitable relationship must be utilized in the program."

Jan 1, 1982

By A. M. Simons

Cyanide destruction by Caro’s acid is one process commonly employed by gold operations to meet regulatory requirements and/or the International Cyanide Management Code compliance for weak acid dissociable (WAD) cyanide in cyanidation tails or waste water from such operations. Typically smallscale bench tests to evaluate and assess the suitability of the Caro’s acid destruction process are conducted. Additionally, the experimental procedure used during these preliminary investigations may also differ from that implemented at the full-scale. This paper presents the results from a fundamental investigation of the Caro’s acid process to establish a more detailed understanding of the impact that the experimental procedure has on the destruction of cyanide. In particular, it was found that the control of pH was important to avoid copper(I) cyanide precipitation at low pH and maximise WAD cyanide destruction. Residual peroxide in the preparation of Caro’s acid has the potential for subsequent cyanide destruction and could be exploited.

Jan 1, 2014

By Roger Francis

There is increasing use of acid leach extraction methods at elevated temperatures and pressures by the mining industry. In many locations there are limited supplies of fresh water, and waters with higher chloride contents must be used, making conditions more corrosive. The fluids downstream of the main autoclave are hot, acidic, oxidizing and contain chlorides and present a challenge to the mining community to ensure reliable operation. Zeron 100 is a high strength superduplex stainless stee, that offers high corrosion resistance at a cost effective price. The paper presents a combination of laboratory data and service experience, particularly in the aggressive fluids found in downstream processing.

Jan 1, 2010

By O. B. Horne, R. O. Morgan, C. E. Anderson

"Air-photo interpretation and photogrammetry are two of the most effective and versatile tools available to the petroleum industry. The techniques have proven successful in providing solutions to many of the problems encountered in the design and construction of oilfield projects.Although most technical personnel are aware that air-photo interpretation and photogrammetry are useful in the selection of routes for roads and pipelines, few realize the true scope of the techniques or the wide variety of areas in which they are applicable.This paper briefly describes the principles involved, and reviews a number of typical applications of particular interest to petroleum companies. Excessive detail is avoided, rather the emphasis is placed upon the wide spectrum of possible applications. It is stressed that on-the-ground examination generally is a necessary adjunct, and that there are certain limitations to the techniques discussed.Properly applied, however, air-photo interpretation and photogrammetry can offer significant advantages in terms of time, flexibility, secrecy and economy."

Jan 1, 1968

Reaction between xanthate ions in solution and oxidized compounds present on the surface of galena to form lead xanthate is considered to be a side reaction not contributing to flotation, although accounting for some consumption of reagent. The direct reaction of lead sulphide with xanthate and oxygen to form lead xanthate is the most significant to flotation. Coadsorntion of dixanthogen is also involved. Previous work has shown lead recovery in lead rougher flotation to be a function of m [H+] where: m = concentration of xanthate in solution rHl = hydrogen ion concentration. A plausible explanation for this relationship is suggest-ed. Likewise, the experimental findings that the amount of xanthate adsorbed under certain conditions is a function of m'[H+] are explained in terms of reaction between xanthate ions and soluble basic lead salts such as PbO.PbS04? It is also shown that m[H+] should have a constant value in lead cleaners operating at a higher pH than the roughers. This conclusion is confirmed by plant data, and the value of the constant agrees well with the calculated value. The finding is useful in mill control.

Jan 1, 1965

By S. Akhlaghi

In many electronic/optoelectronic devices, interaction between the metal stack and solder is undesirable. If a reaction happens, a nonuniform joint containing spikes and voids is likely to form and as a result the heat dissipation deteriorates significantly, which in turn, leads to the degradation of the bond. In the present work the interaction between Ti/Mo/ Au metallization system, which was sputter deposited on AlN substrates, and Pb-Sn solder was studied by using scanning electron microscopy (SEM). Also, an EDX system was used to trace the changes in chemical composition of the layers after solder tests. The microstructural examinations show that the Ti and Mo layer from the Ti/Mo/ Au metallization system are not impermeable enough and thus Ca from the surface of the substrate moves all the way up to the interface of Au/Mo and forms an intermetallic at the interface, which grows over time.

Jan 1, 2006

By Ho-Sung Yoon, Jyothi Rajesh Kumar, Jin-Young Lee

"Global population is a key factor in future energy requirements, especially considering the important elements of global energy resources, electricity production, the accessibility/non-accessibility of electricity, greenhouse gas emissions and the states of nuclear reactors. Everyday human requirements depend on industrial products, and industries need a considerable amount of electricity to run. Nuclear fuel is inexpensive and bolsters industrial growth. As uranium reserves are being consumed rapidly, an alternative source of energy in the nuclear industry is thorium. Here, primary energy supplies by various sources from 1993 to 2011 as well as estimates of future needs to 2020 are discussed. This study finds that primary energy sources are mainly fossil fuels, renewables sources, and nuclear and hydro energy. In addition, growth depends on increases mainly in renewable sources.Recovery of thorium from its ores by using hydrometallurgical routes were described and discussed. The final part of this paper was presented a case study of the thorium extraction from Korean monazite ore leach liquors by using Prieme JM-T diluted in A150 diluent as an extractant system. And possible separation of the thorium from rare earths (REs) and base metals were calculated by measuring of separation factors and finally, the recovery of thorium from loaded organic of Prieme JM-T was established.THORIUM IS FUTURE NUCLEAR FUEL?Global energy consumption is increasing everyday with the high population growth, high industrialization of numerous countries and the higher level of good and services consumption that follows it. If we look at specific sectors of the economy, oil consumption grew by 0.8 million barrels per day, globally, whereas the increase was 0.4 % for natural gas and coal 1.8 % for nuclear power and just under 2.0 % for hydroelectric power (Asheley 2009). Use of renewable sources of energy for power generation and transportation increased by 3% in 2014 (BP 2015)). Thus alternative source of energy must be identified and developed to meet this increasing demand. Thorium is a potential one for the nuclear industry."

Jan 1, 2016

By The Mine Staff

THE PROPERTY of the Lamaque Mining Company, Limited, ?is located in the Town of Bourlamaque, seventy miles east of Noranda, in Bourlamaque township, Abitrbi county, north western Quebec. Gold production commenced at Lamaque in April, 1935, with an initial mill capacity of 250 tons per day. The capacity was doubled in November of the same year, and in December, 1937, it further increased to 1,200 tons per day. During the war years the mill operated at a reduced tonnage, but in 1951 milling units were added along with complementary crushing and shop facilities to bring the capacity to 1,500 tons per day. Finally, in 1953, the capacity was raised to 2,000 tons per day, which rate is being maintained at the present time. The total production at Lamaque from April 2nd, 1935, to December 31st, 1956, has been 9,168,901 tons of ore from which 2,208,168 ounces of gold was recovered. The total value of this production , excluding E.G. M.À.*, was $77,869,653.

Jan 1, 1957

By Sabry A. Sabour

Metal price is among the key variables in the open pit optimization and the economic evaluation process. The common approach to handle metal prices in open pit mine planning is to optimize the ultimate pit and the mining schedules using a fixed, flat metal price. In this respect, metal price is assumed to be known with certainty throughout the entire mine life, which in some cases can reach 80 years. Given the volatile nature of metal markets and the metal price cycles, the conventional pit optimization approach may generate sub-optimized mining plans, which results in either extra costs to mining projects or lost revenues, or both. Long-term operational decisions such as future pit expansions, beyond the currently optimized limits, cannot be handled using the pit optimization approach based on flat metal prices. There is a growing interest in the mining industry to model and manage such market uncertainty in the pit optimization as well as the project evaluations in order to maximize the value of mining operations. In this paper, the author will outline a practical approach to optimize the ultimate pit taking into account the volatility and variability of metal markets. The proposed approach uses a combination of the pit optimizer of the commercial MineSight package and a simulation-based economic modeling real options valuation approach employing the least-squares Monte Carlo algorithm. MineSight pit optimizer employs both the floating cone for initial optimization exercise and the standard Lerchs-Grossmann algorithm. In this paper, Lerchs-Grossmann option will be used to generate the pit shells. Real options valuation approach used in this study is based on generating multiple metal price scenarios. Metal price uncertainty is modeled using stochastic metal price models such as the geometric Brownian motion and the mean-reverting process. The mining operational scenarios corresponding to the simulated metal prices are then optimized using the least-square Monte Carlo approach. The objective is to maximize the discounted cash flow value of the project while incorporating the operating flexibility to revise the operating status of the open pit with time as new information becomes available. The focus of this work is on the practicality of the proposed uncertainty-based pit optimization approach and the difference it can make to the technical operational mining decisions. A case study of a hypothetical open pit poly-metallic mine is provided. The deposit contains copper, gold and silver grades. The run of mine ore is sent to the process plant that produces copper concentrate with copper as the main metal and gold and silver as the by-products. Four uncertain variables are considered here include copper, gold, silver prices and foreign exchange rate. Both copper price and exchange rate are modeled using the mean-reverting process while gold and silver prices are modeled using the geometric Brownian motion. The case study is performed using both the conventional flat price pit optimization approach and the proposed uncertainty-based one to compare results.

Aug 1, 2013