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By Robert T. McKnight

"Traditional techniques for valuing resource projects companies have been primarily based on discounted cashflow methods (DCF) or by comparison to similar projects with an apparent market capitalization. Many resource projects are really forms of options to invest rather than a future cashflow stream. Employing the DCF method to value a resource project which is really an option to invest, can dramatically underestimate the real value of the project. The analytical tools required to evaluate options, while more complicated than the usual spreadsheets used for DCF, are becoming more easily available and usable by managers. This paper will discuss the background of options valuation and some of the tools which will make it easier for managers to estimate the value of projects and companies which have significant real option values.ResumeBob McKnight is a graduate of the University of British Columbia in Geological Engineering, supplemented by an MBA from Simon Fraser University. Following several years in the oil patch with Cities Service and Brascan, Bob returned to Vancouver in 1979 to work for Wright Engineers. He subsequently went on to work for Cassiar Mining, Getty Resources and Endeavour Financial before joining Pincock Allen & Holt Ltd. in 1998. His experience ranges from exploration to feasibility studies, financial evaluations of mining and oil & gas projects, due diligence, project finance, valuations and mergers and acquisitions. He has extensive international mining experience pertaining to such countries as Chile, Mexico, Uruguay, Thailand, Indonesia, Angola, Papua New Guinea, Kazakhstan.What are Options?Options have been around for centuries. They were familiar to Roman and Phoenician traders who were shipping cargoes from Mediterranean seaports. In the financial world, options are types of contracts that generally include the right, but not the obligation, to buy or sell a share, currency or commodity. The underlying commodity price or share price changes are assumed to be lognormally distributed. In this context, options are of two general types, ""call"" options and ""put"" options. Call options have the characteristic of having the right to buy a tradable commodity or currency at a predetermined price for a specified period of time. For the owner of call options, they become more valuable as the price of the underlying commodity increases. For the seller of call options, these options become an increasing liability as commodity prices rise, since there is the obligation to sell the commodity at a predetermined (perhaps lower-than-market) price. This characteristic of call options recently became high profile with the sharp rise in gold prices last year. The value of gold call options sold by certain producers increased their associated liabilities to the point where margin calls were made."

Jan 1, 2003

By Yves Gratton

The International Commission on Large Dams (ICOLD) is a non-governmental International Organization which provides a forum for the exchange of knowledge and experience in dam engineering. It is the world's leading professional organization dedicated to advancing the technology of dam engineering and supporting socially and environmentally responsible development and management of the world's water resources. ICOLD was founded in 1928 and has National Committees in 82 countries with approximately 7,000 individual members who are engineers, geologists and scientists from governmental and private organizations, consulting firms universities, laboratories and construction companies. Its original aim was to encourage progession in planning, design, construction, operation and maintenance of large dams and associated civil works by collecting and disseminating relevant information and by studying related technical questions. Since the late sixties, focus was put on subjects of current concern such as dam safety, monitoring of performance, reanalysis of older dams and spillways, effects of ageing and environmental impacts. More recently, additional subjects have included cost studies at the planning and construction stages, harnessing international rivers, information for the public at large, and financing.

May 1, 2002

By L. A. Jameson, J. Awmack, P. J. Lind

"Peñasquito is a polymetallic deposit containing gold, silver, lead, and zinc. The operation is currently the largest producer of gold in Mexico. Over the next few years, the process flowsheet will be expanded beyond the flotation of lead and zinc to include flotation of pyrite from zinc tails and subsequent leaching of the pyrite concentrate. This paper outlines mineralogical leach characterization that has been carried out to improve the understanding of the complex hosting of gold and silver minerals in the ore. Organic carbon that is present in the ore can have an impact on flotation and leaching. Mineralogical techniques used to characterize this deleterious component of the ore are introduced.INTRODUCTION Goldcorp’s Peñasquito operation is located in the Mexican state of Zacatecas, approximately 200 km from the city of Zacatecas as shown in Figure 1. Peñasquito has been in operation since 2009 and is currently Mexico’s largest gold mine. Mining is carried out by open-pit methods, with oxide ore proceeding to a heap leach facility and sulfide ore treated in the sulfide processing plant.The processing capacity of the sulfide plant is 130,000 tonnes of ore per day and in 2016 production amounted to 450,000 ounces of gold, 17.6 million ounces of silver, 109 million lb of contained lead, and 263 million lb of contained zinc in lead and zinc concentrates. GEOLOGY The Peñasquito deposit is hosted in and adjacent to two breccia pipes; Peñasco and Breccia Azul. The two breccia pipes are branches of a larger intrusive-related complex, which is hosted in the sedimentary Caracol formation as illustrated in Figure 2. The regional geology is dominated by Mesozoic sedimentary rocks which comprise a thick series of marine sediments deposited during the Jurassic and Cretaceous periods. A 2 km thick sequence of carbonaceous and calcareous siltstones and interbedded sandstones is underlain by a 1.5 to 2 km thick limestone sequence (Goldcorp Inc., 2015)."

Jan 1, 2017

By P. J. Finnis

This paper describes the use of wire rope on open-pit mining equipment, giving specifications and examples of the performance achieved. Installation methods are also discussed, making the paper of considerable practical use to mine operators.

Jan 1, 1973

By Michael Arriagada, Ivan Arriagada

"As mines return to shafts to economically exploit deeper reserves, two methods mine owners use to minimize short term costs are: sinking shafts in phases and refurbishing old, existing shafts. While there may appear to be benefits to utilizing existing infrastructure, often this is not the case, resulting in missed deadlines and added costs. Similarly, if proper long term planning is not executed when sinking a shaft in phases, additional costs and downtime will be accrued. This paper will take an in depth look at both of these options with an eye towards optimizing costs, minimizing downtime, and facilitating construction. INTRODUCTION With the onset of mechanized mining and large capacity trucks, many mines turned away from shafts and began to use ramps to haul ore to surface. However, continual exploitation of mineral reserves located closer to surface, combined with the subsequent unearthing of additional resources at greater depths, forced mines to go deeper and deeper to extend the life and keep the operation running. In shallow mines, hauling ore by truck was an economical option. However, as mines get deeper, driving ramps takes additional time, and hauling over longer and longer distances becomes less economic, both in terms of cost and time. For this reason Mexico, in particular, has seen a jump in the number of shafts which have been put into production, as well as having a number of shafts in different stages of development and still more in the conceptual stages. Many of the shaft projects in Mexico are being designed in phases, with the hoist and equipment purchased capable of reaching the ultimate planned depth of the shaft, but with sinking operations stopping short at an intermediate depth. A loading pocket is then installed to start exploiting mineral at this depth sooner, with subsequent phases planned for a later date using either a rock pentice or bulkhead to separate the sinking operations from the active shaft above. Currently, we are directly involved in two such projects which are actively being deepened, as well as having seen various others already reach completion. If done properly with the long-term plan in mind, sinking in phases can be a very viable option, allowing for faster production while fully utilizing the equipment at various depths. However, there are many issues which can arise when sinking a shaft in phases that if not properly examined and planned for from the outset, have the potential to eliminate the gains hoped for when it was decided to sink in this manner."

Jan 1, 2019

By Deborah A. McCombe

"There are a number of important dates that must be disclosed when a Qualified Person (QP) is preparing a technical report for securities purposes. The dates are discussed in NI43-101 and the Form of the Technical Report, NI43-101F1. •,Effective date of the technical report •,Possible revision date of the report •,Effective date of mineral resources and mineral reserves •,Date of the personal inspection (site visit) •,Signature date of the date report (execution date) •,Date of the certificate of the QP •,Date of the consent of the QP The effective date of the report is basically the cut-off date for the information that is included in the technical report. The effective date should be close to the signature date. If there is too long a period between these dates, the QP runs the risk of new material information becoming available and then the technical report would no longer be current. The effective date is disclosed on the title page of the report and on the signature page. If a technical report needs to be revised to correct problems or disclosure deficiencies identified by the regulators, the QP will normally need to include a revision date on the title page of the report to distinguish the revised version from the original version. In these circumstances, the regulators will request that the original date of the report remain on the title page and the revised date will be below it. When a technical report must be revised, the QP must resign and date the signature page of the report and provide a new certificate and consent."

Jan 1, 2003

By D. R. Schmitt, Q. Jia, R. Kofman

"Tests were carried out on clear glass blocks containing borehole aligned with and at an angle to applied principal stress states in order to study the growth of drilling induced tensile fractures. The samples were illuminated such that photoelastic fringes could be video recorded during the measurements; this was useful in assessing states of stress and in determining fracture initiation. Axial drilling induced fractures were observed at the azimuths of the applied uniaxial stress as would be expected from the concentrated stresses. En echelon fractures were observed from the borehole deviated at 45° to the direction of the compression. These preliminary and currently qualitative results show that glass blocks serve as a useful test medium for studies of stress concentration and drilling induced fracture creation. INTRODUCTIONWith the increasing exploitation of unconventional oil/gas reservoirs using deviated drilling in recent years, the effects of the in-situ stress on the success of energy production have become more critical than ever before. Knowledge of the state of stress in the earth enables us to determine well trajectories, well locations, hydraulic fracturing design and production rates, but knowing the crustal stress is always challenging. Strictly, it can only be obtained to varying quantitative degrees by accessing the earth through drilling. Failure of the rock at the borehole wall produces borehole breakouts (e.g., Bell & Gough, 1979; Haimson & Herrick, 1986; Zoback et al., 1985) and drilling-induced tensile fractures (DITF) (e.g., Aadnoy, 1990; Aadnoy & Bell, 1998; Barton et al., 1997; Brudy & Zoback, 1999; Davatzes & Hickman, 2010; Peska & Zoback, 1995). Thus, it is important to understand the failure mechanism of the rock in the vicinity of the borehole. A number of closed-form expressions have been developed that allow the stress concentrations to be calculated in the vicinity of a borehole including Kirsch’s (1898) 2-D plane strain solution and 3D formulae for elastically isotropic (Hiramatsu and Oka, 1962) and anisotropic (Lekhnitskii, 1981; Amadei, 1983) continua. These solutions have been applied in numerous studies (e.g., Ong, 1994; Ong & Roegiers, 1996; Vahid & Ghassemi, 2011; Jia & Schmitt, 2014; Ito et al., 2001) to analyze the failure mechanisms of drilling-induced tensile fractures (DITF) on the borehole wall."

Jan 1, 2015

By Robert J. Uffen

YOU will likely recall the accomplishments of the International Geophysical Year of 1957, with its polar expeditions, the discovery of the Van Allen radiation belts and the spectacular launchings of the first artificial earth satellites. Our know ledge of the exterior of the earth was greatly increased by this international, friendly, cooperative scientific investigation. The Inter-national Union of Geodesy and Geo-physics has now been joined by the new International Union of Geological Sciences in sponsoring a similar study of the earth's interior. The program will extend from January, 1962 until December. 1964, and is known as the International Upper Mantle Project. During the T.G.Y studies of the interior of the earth were relatively neglected, even though the same international •Cooperation in obtaining simultaneous world-wide observations, by similar instruments, is required to locate and study earth-quakes, for example, as it is to study the earth's upper atmosphere. The upper mantle is 1•emote from man, as it extends from a depth of about 10 km. to perhaps 1000 km., but its practical importance is great.

Jan 1, 1962

By John J. Laffin

"IN THE BOOK that has been rated the best seller of all time, it is predicted that man will earn his livelihood by the sweat of his brow. Apparently man has accepted the statement as a challenge and has been attempting to refute it ever since, as he continues to transfer the workload to his inanimate servants - the many types of machines and other labour-saving devices that are available to assist or perform for him in the normal tasks of the day. The history of the evolution of the use of energy takes us back to primitive man, who existed in a very low energy environment, the only energy available being his own muscle power. Although man took a great leap forward when he discovered fire, which was used for lighting, heating and cooking, he still depended upon his own muscles for power. Early man's greatest achievement was probably the invention of the wheel, which permitted him to utilize the muscle power of animals. While still in a very primitive state when viewed from the perspective of the twentieth century, man, with fire and the wheel, had achieved a standard of life far exceeding that of his predecessors. Looking beyond the very basic elements of human energy, fire and the muscle power of animals, we find the next additions of energy coming from man's mastery of other elements of nature. The Phoenicians utilized the power of the wind and the Romans adapted the energy of falling water to the water wheel."

Jan 1, 1972

By Vicken Aprahamian

"The Royal Canadian Mint (RCM) operates a gold and silver refining toll operation in Ottawa, Ontario, Canada. The silver refining line is a recent addition and was commissioned in 2005. One source of silver in the refinery is from gold doré which undergoes Miller chlorination before electrorefining to 99.99% cathode gold. Treatment of the Miller salt or silver-copper chloride produced consisted of a 2-stage high temperature reduction process step using soda ash prior to 2005. Copper-rich silver bars were produced and shipped offsite for further refining.The copper-rich bars could not be blended into sufficient high grade silver doré to dilute the copper and allow electrorefining in a silver nitrate medium. A new wet process was developed and commissioned to replace the high temperature reduction and allow removal of bulk copper. Thus upgraded impure silver produced was cast into anode for electrorefining to 99.9% purity silver flake. The 2005 RCM Hydromet Slag process is presented as well as its more current version. In addition, mention is made of a novel processing scenario for the introduction of Miller chlorination silver into the electrorefining circuit."

Jan 1, 2015

By L. K. Daneshmend

Key issues in managing information systems in the minerals industry will likely continue to be those relating to the integration and interoperability of disparate systems. This paper argues that, in order to harness the promised benefits of information technologies, the mining industry should adopt a set of open systems standards to define data formats and protocols for seamless data exchange. This is in direct contrast to the present situation where mining equipment, software and instrument suppliers rigidly adhere to proprietary standards for fear of losing competitive advantage. Benefits to the mining sector resulting from the adoption of such standards would be: the provision of near-time data for executive decision support, and the freedom to choose best technologies. The principal benefits to the leading mining software suppliers will be increased market share as a result of “captive sites” converting to open systems standards. Examples are given of open systems standards developed for related industries such as the Petroleum Open Systems Corporation (POSC) and the Machinery Information Management Open Systems Alliance (MIMOSA).

Jan 1, 2000

By John D. Galloway

Mining is one of the important primary industries of Canada, with a gross production in 1927 estimated at $241,773,000- the highest in the history of the country-and an impressive dividend record. It is quite apparent, therefore, that mining is a business worthy of the careful attention of the people of Canada. Furthermore, with a vast undeveloped territory more or less mineralized, it is highly probable that our mining industry will continue to expand indefinitely, with a consequent increase in production and in the amounts of the yearly profits distributed. In recent years, the public has taken a larger interest than formerly in mining-an interest, moreover, that is not academic, but primarily from the viewpoint of profits. It is quite evident that mining is a profitable business, at least to some, and the average man on the street, hearing of these profits, is attracted thereto. I have no doubt that many of you have .read in promotion prospectuses, with figures to prove it, that mining is the most conservative, the safest, and the highest-yielding business in the world. Now, a lot of this information is best judged by the old saying that "While figures don't lie, liars figure". At the same time, mining, properly conducted, is a profitable business, even though speculative, and undoubtedly much profit will come from Canadian mines in the future. In this paper my conclusions regarding mining investments are based largely on British Columbia experience, together with some slight knowledge of mining conditions in the other Provinces. It is considered, however, that the inferences drawn are applicable to mining throughout Canada.

Jan 1, 1928

By McNeely DuBose

INTRODUCTORY PROSPECTING for aluminum has always been, and still is, a peculiar combination of the technical with the physical approach, and 1 want to explain my conception of the term 'prospecting' when applied to aluminum, which differs in some respects from the ordinarily accepted idea of prospecting. In the early days of gold mining, prospecting was a search in the hills and the river beds for the metal, not for its chemical combinations. And so it was in the early days of aluminum, with the difference that the search for the metal was carried on, not in the hills and dales, but in chemical laboratories. Aluminum is never found in the elemental state and at that time the metal bad never been seen, but scientists of that day bad forecast that such a metal must exist and in 1807 Sir Humphrey Davy went so far as to give this unseen metal a name, aluminum, from the Greek word alumen. This word applies to our alum, and it was from alum that Davy sought to produce the metal. It is strange to think that, in laboratories throughout England and on the continent, prospecting for aluminum was busily under way by men who had never seen the metal they were searching for. Their situation was something like that of the fisherman and the 'big one' that got away. They could describe the metal, give its exact weight, and even name it, but they could not produce visual evidence of its existence. Eventually, however, the efforts of the scientist 'prospectors' were rewarded and in 1826 the metal was actually produced, possibly first by Wohler, though Oerstedt, a Danish chemist, is usually credited with the achievement.

Jan 1, 1951

By A. van As, J. McGaughey, M. J. Mol, R. Tosen

Geotechnical monitoring is a key element of the successful management of a block cave mine. The interrelationships between production and various monitoring datasets are often not realized due to a lack of data integration and appropriate 3D visualization. Timely delivery of information to ensure best cave management practices is only possible with an integrated cave management system. At Rio Tinto, a state-of-the-art cave management system (CaveCAD) has been designed and developed in cooperation with Mira Geoscience to integrate and analyze vast datasets and report this as instructive information regarding the current \u201cstatus\u201d of the cave.

Jan 1, 2014

By F. E. Millett

The following notes deal chiefly with changes from steam to electric drives, or, in the case of the Bellevue pumps, from air to electric. Where electric power can be purchased or generated cheaply it can be used to advantage and is generally more economical than steam, especially in places remote from the central power-plant. Nothing could be more simple than the operation of electrical gear. It does not require a competent engineer constantly on the alert, oiling and watching bearings, and maintenance is at a minimum. The ease with which the current is transmitted from its source to where it must do its work is one of its greatest advantages. Transmission losses are very low. Generally speaking, the smaller the plant the lower the loss and 90 per cent, and better, efficiency is easily attained. In and around Bellevue 2300-volt, three-phase, is the standard distributing pressure; our power requirements and the distances transmitted, for the present, do not require more than this. Most of the heavier motors are 2300-volt .machines, which eliminates the cost and possible troubles of step-down transformers, and makes for a cheaper and less bulky motor. This applies to two fan, two hoist, and two compressor motors, the smallest being 75 and the largest 520 horse power. The standard pressure on power lines to all inside pumps is 550 volts, and 220 volts is general for the the tipple. While 110 volts is used for house and office lighting service, it is not economical around and in the mine. No matter what kind of device is used to lock and protect the lamps, they are invariably missing.

Jan 1, 1926

The Cooperative Research Centre for Mining Technology and Equipment (CMTE) is funded by the Commonwealth Government, by its mining research members Ñ the Universities of Queensland and Sydney and the CSIRO1, and by its industry members Ñ BHP Coal, RioTinto R&TD, Hamersley Iron, Mining Technologies Australia, Pasminco, Shell Coal, WMC Resources, Advanced Mining Technologies, and Aberfoyle. The Centre conducts work aimed at improving the competitiveness of the Australian mining industry. The current work is focused in four areas: new mining and drilling systems, geological sensing, automation, and equipment maintenance and reliability. This paper describes much of the work in these program areas that relates to metalliferous mining.

Jan 1, 2001

By Alan E. Cameron

WE assemble again today in this comfortable, hospitable Inn to begin this, the 58th, Meeting of our Society. It is just a year ago when last we met but that year was, probably, the most portentious year in the whole history of mankind. In that year, the German 'Atlantic Wall' was broached, the Rhine was crossed, and Germany, as a Nation, has ceased to be. The agony of Europe is over; convalescence may be, probably will be, slow. But blood no longer flows in Europe. Time will heal the sores, cover the scars, regenerate the industries, rebuild the cities, and re-establish the people. True, the war of all wars is not yet over. True, a bloody conflict remains . But, the power of the United Nations now converges on one target. The rain of blood will be heavy. We can hope the storm will be short. The sun is on the horizon. The light of peace 1s in the sky. What of that Peace? Are we ready for it? Have we a 'sure foundation ' for our future world? Are the footings under that foundation broad and substantial? Can we look forward with confidence to a lasting peace and a fruitful life? The United Nations, even as this is being written, are in conference in San Francisco, placing the footings, rearing the foundations for a world edifice. There are bickerings; there are jealousies. The world is tired, and a tired family always squabbles. We can, we must, believe that the decisions they make, the edifices they rear, will be better than anything we each could effect separately. It will be a compromise, probably; it will carry things that will hurt us, just as it will carry things that will hurt others. We can, we must, believe that the good of the whole is a greater good than the good of the part. Each Nation within the United Nations must sacrifice something, each part of each Nation must sacrifice something, each individual within each part of each nation must contribute something, if the whole is to be wholesome. Sacrifice and contribution must be the order of the day if the New World we are about to build is to be worth while. What of Nova Scotia? The world has travelled far in the last year; how far has Nova Scotia gone? Canada has preparations for the Peace under way; what has Nova Scotia done? Is Nova Scotia preparing counter measures for the sacrifices it must make? Is each of us ready to contribute his share?

Jan 1, 1945

By J. R. Johanson, A. W. Jenike

"A solid flows out of a bin provided that the outlet is sufficiently large so that stable obstructions to flow do not develop. The geometry and surface finish of a bin and the construction of the feeder determine the type of flow pattern which then develops within the bin. The pattern, in turn, affects the uniformity and consistency of the stream, segregation, caking, degradation, live capacity and the action of level measuring devices.In most bins now in operation, material flows toward the feeder through a channel which forms within the stationary solid. This is referred to as funnel flow. If the hopper of the bin is sufficiently steep and smooth and the feeder capable of drawing material across the whole area of the outlet, all the solid flows whenever the feeder is in operation; this is referred to as mass flow. Mass-flow bins are usually far superior to funnel-flow bins; their initial cost is also usually higher.The paper describes the design criteria used in deter-mining the minimum bin outlet needed for flow and the bin geometry needed for mass flow."

Jan 1, 1970

By Jack G. Hazan

The Critical Path Method is the modern scientific answer for solving the planning and scheduling problems inherent in today's complex projects. With this method, nothing is left to chance. All resources are controlled and kept to the minimum. The various phases are properly planned and strategically determined. Optimum conditions are evaluated for the most economical and fastest way to complete a definite project. The method must be fully understood and implemented with positive data and continuous feedback to obtain the best results. This paper covers the various aspects of the Critical Path Method and mentions some of its applications in the mining and metallurgical fields. T 0 progress to a higher state of human welfare necessarily involves sacrifices. The greatest sacrifice is to relinquish social freedom in favour of economic freedom. In the old days, for example, a cobbler was free to work at whatever time of the day he chose; today, he can't. He is now forced to adapt himself to environment and to work at stand-

Jan 1, 1965

By M. C. Makepeace

"It is the objective of designed experiments to obtain more information for less material and process cost than can be obtained by traditional experimentation. In this paper, the fundamental concepts on which the statistical design of experiments is based are briefly re-viewed according to the following outline: The Experiment The Design The Analysis Two simple 2"" factorial experiments are presented as examples."

Jan 1, 1967