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By B. Larsen, S. Z. Nascimento, K. Fidje, J. P. M. Amaro, H. Gran

Safe and good operation of Søderberg electrodes is dependent upon high quality electrode paste coupled with correct electrode operating procedures. Good electrode performance depends further on proper melting and densification of the electrode paste. The melted paste should form a dense and viscous layer that prevents gasses from the baking process to move upwards. Both paste cylinders/blocks and briquettes can be used, but the procedures may differ between the various types of paste products. For briquette columns the formation of the important viscous layer is obtained through melting and densification of the briquettes. By basic rheological studies of electrode paste and by laboratory tests of briquette beds at isothermal conditions we have achieved a better understanding of the melting process. The effects of temperature gradients, pressure and friction between the briquettes and the electrode casing have also been evaluated qualitatively in pilot scale experiment and in industrial scale tests. The paper shows that melting and densification starts at a considerable lower temperature than the pitch softening temperature. It is concluded that the formation of a briquette electrode column depends on parameters as temperature, briquette column pressure and the friction. Operating conditions influencing the above parameters should be defined and established for each specific furnace operation. Such factors are e.g., charging and slipping procedures, column heating and electrical conditions.

Jan 1, 2004

Beatrix Gold Mine, a deep-level gold mine in the Free State province of South Africa, has the highest methane emission rate of any gold mine in the country. Methane is emitted from underground sources intersected during mining operations and is liberated into the general mine atmosphere. The total methane emission rate for the mine is of the order of 16001/s and the South section of the mine emits approximately 10001/s of methane gas. The mine has a history of gas accumulations which have led to a number of underground explosions. Following the last explosion in 2001 and the subsequent investigation, a number of recommendations were made. Two of these were to consider extracting the underground mine methane to render the mine atmosphere safe, and to declare hazardous locations that require special operating procedures. A number of such workplaces have now been declared at the South section of the mine. Methane gas is a potent, explosive greenhouse gas whose contribution to global warming and climate change is 21 times higher than that of carbon dioxide. To reduce its inherent danger and to mitigate its global warming impact, a carbon credit project under the Clean Development Mechanism (CDM) of the Kyoto Protocol has been developed and implemented, the aim being to capture and destroy the methane at Beatrix mine. The mine has constructed an extraction system to capture and extract 400 (Is of the methane. Percentage methane (per volume) of the gas intersected at source is 85%, with negligible concentrations of other hydrocarbons and water associated. The mine contracted the services of Group Five to design and construct the flare and ancillary equipment on surface, and Promethium Carbon was contracted to assist with the carbon¬-related aspects, approval framework, and administration of the project. A number of design and construction challenges had to be faced to extract and transport the gas effectively to the surface of the mine as the emitters are approximately 3 600 m away from the mine shaft at a depth of 860 m. Further considerations were the requirements for the type of column to be used to transport the methane gas, the pressure loss over the system, the safety systems needed to address the risk factors involved in the transport of the methane gas, and a suitable pumping system to extract the gas to the surface. The system operates under negative pressure provided by two blowers on surface delivering the emissions to a flare capable of burning off 450 8/s of methane gas. In this paper a number of benefits for the mine are discussed. These include, but are not limited to, the removal of approximately 55% of the total volume of methane gas from the general body of the air in the geographical areas of the mine where the methane gas is emitted into the atmosphere, and reducing the risk of methane-related incidents. A further benefit of this project is the mitigation of the global warming impact of the methane gas and the reduction of the mine's carbon footprint by approximately 25%. This project could also assist in alleviating the energy shortage being experienced in South Africa by means of the planned generation of 4 MW of electrical power, utilizing the methane gas, as a second phase of the project.

Jan 1, 2011

By J. -C. Trickett

The high-resolution three-dimensional (3-D) seismic reflection data acquired for Impala Platinum between 1998 and 2002 in the western Bushveld Igneous Complex form an integral part of Impala?s mine planning and development programme. These data are of sufficiently high quality to provide unprecedented 3-D models of the geological structure of the Merensky Reef and UG2 Chromitite Reef, from which the mine deduces the size, geometry and distribution of mineable blocks. Conversely, the seismic data details zones of un-mineable ground caused by structural disturbances in the form of potholes, fault zones and pegmatoid intrusions. Furthermore, variations in dip and strike are well imaged, allowing the mine planners to optimize the mine design and layout. Current interpretation work is focused on enhancing the accuracy of these geological models even further through the analysis of ?seismic trace attributes.? Preliminary testing on the Impala Platinum 3-D seismic volume has shown that attribute analysis has the potential to illuminate a number of geological reef disturbances that are otherwise ?invisible? in the original seismic time volume. Potential areas of improvement include inter alia: ?Improved definition of major fault zones ?Improved definition of zones of reef depression (?slumping?) ?Identification of reef terracing and/or reverse dip. Keywords: 3-D reflection seismics; Impala Platinum Ltd; seismic attribute analysis; seismic micro technology (SMT); rock solid attributes; dip-azimuth; instantaneous phase and similarity.

Jan 1, 2005

By N. C. Gay

During the past two to three years, there have been some significant Improvements to the quality of the support systems being used on South African gold mines, and the Implementation of these new developments, together with more worker awareness has been instrumental in reducing rock-related accidents, particularly in deep mines. This paper provides guidelines to mine and group personnel on how to monitor the ongoing Implementation of new technologies and so ensure the benefits that will accrue in terms of mine safety and profitability. Particular attention is given to the establishment of auditing procedures that will enable management to assess the benefits obtained from new technologies, as well as providing Improved maintenance procedures and procedures for the optimum utilization of seismic data. The areas that receive most attention include support systems for stopes and tunnels, such as hydraulic props, backfill, and rockburst-resistant tunnel support; stope and regional support layouts; mine standards; and staffing of the rock-engineering department. The paper includes a draft audit form and a hypothetical example of an audit report

Jan 1, 1997

By R. Weideman, K. du Preez

Biological sulfate reduction has become a successful treatment alternative for acid mine drainage and Mintek is developing biological processes for treatment of highsulfate mine waters. Treatment of these high-sulfate waters is achieved by sulfatereducing bacteria that reduce sulfate to produce sulfide as a product, in the form of H2S and HS− at neutral pH. This introduces the opportunity to apply treated effluents from biological treatment processes for the recovery of metals, such as copper, from metallurgical waste streams. This study models the kinetics of copper sulfide precipitation from a complex bioleach liquor. The results indicated a rapid rate of reaction and the formation of covellite, suggesting the potential to use biogenic sulfide to recover copper as a metal sulfide product.

Jan 1, 2023

By L. Hekkala, J. Ollila, J. Keihäs, P. Mäkelä

The Outokumpu Steel Belt Sintering (SBS) Technology is used for manufacturing chromite pellets that are charged into a smelting furnace for ferrochromium production. One of the main elements in successful furnace operation is the control of gas flows inside the furnace, giving improved temperature distribution in the bed during the process. Computational Fluid Dynamics (CFD) gives excellent opportunities for studying these phenomena. An investigation using CFD can be performed relatively fast. For example, implications of different configurations can be studied within a day and an optimum design chosen. Therefore, Outokumpu Technology has developed a Steel Belt Sintering Model (SBSM), which takes advantage of a commercial CFD code. Each main physicochemical event occurring in a steel belt sintering furnace is incorporated independently in the SBS model as a sub-model, enabling every event to be studied separately. The commercial CFD code solves mass, momentum, species and energy equations for determination of the gas flow, composition and temperature. In addition, the Outokumpu SBSM takes into account the moving pellet bed, drying of pellets interms of water content, coke combustion, oxidation and reduction of chromite and the decomposition of carbonates and silicates. During the development of the model, numerous laboratory-scale tests were performed. The sub-models were validated against the laboratory tests. The reliability of the Outokumpu Steel Belt Sintering Model was validated against a pilot-scale batch-sintering furnace by comparing the modelling results against measurements. The aim of this paper is to give a brief presentation of the Outokumpu steel belt sintering model by showing some general modelling examples. Emphasis has been placed on demonstrating some of the main features of the model.

Jan 1, 2007

By D. A. Cowen

Toll and custom treatment of base metal concentrates have been performed for decades as mines and concentrators are developed distant from capital and, energy-intensive smelting and refining facilities. Commercial treatment terms have been developed and refined for over a century, and are negotiated taking into account a complex array of quality and economic factors. Treatment of third-party concentrates in the South African platinum industry is a comparatively recent development, brought about by the opening up of mineral rights and operations being developed that are smaller than the critical size required to sustain capitalization of smelting or refining plant. Published commercial terms have not been demonstrated to reflect the complexities and subtleties of base metal concentrate markets. This paper outlines some key elements and parameter ranges of base metal concentrate treatment contracts, and applies similar principles to typical Merensky and UG2 platinum group element (PGE) concentrates to determine potential value distribution between the mining and treatment parties in tolling arrangements.

Jan 1, 2012

By R. Dehghan, M. Zarei, A. Tohry, S. C. Chelgani

Typical depressants for selective reverse flotation of iron oxides from complex silicates do not generally show high levels of efficiency. Therefore, as a hot topic, there are several ongoing investigations in this area. The main aim of this paper is exploring the potential of using humic acid (HA) as a depressant in reverse cationic flotation of hematite from complex silicates. For such a process, the wettability and flotation behaviour of pure minerals (hematite and silicates) was investigated at pH 10 in the presence of HA and cationic collector. Adsorption mechanism of HA on these minerals was measured by zeta-potential and FTIR. Results of flotation tests showed that at the lower concentrations of HA, selective separation of silicates from hematite is beneficial, where the floatability of amphibole was higher than pyroxene. A higher separation efficiency of hematite through reverse flotation was observed in the presence of amphibole, in comparison with the presence of pyroxene. Wettability studies showed that HA has a significant effect on reducing the hydrophobicity of treated minerals with the collector. The adsorption, ZPC and FTIR test results indicated that HA was adsorbed on both silicates and hematite. However, the absorption intensity onto hematite was much higher than silicates. It was found that the adsorption mechanism of HA on hematite takes place through both strong H-bonding and ligand exchange. Keywords: Reverse cationic flotation, humic acid, iron oxide, complex silicates, surface adsorption

Jan 1, 2020

By C. Cunningham

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

Jan 1, 2003

By Wayne Burmeister, Danie Benade, Louis Meyer, Hugo Joubert

What is not measured cannot be managed. This is true of most things, including a furnace lining. This paper describes a Lining Management System used for this purpose. It provides the operations staff with a management tool to predict long term lining life and acts as a process optimisation tool. It alarms and records upset furnace conditions. Outputs from the system are described as presented through a specially developed software package and interface. It includes vertical and horizontal furnace sections showing estimated isotherms through the lining as well as the furnace bath. It also shows calculated heat flux values, estimated lining wear and the freeze layer profile. A novel three-dimensional display is described which provides the operator with a big picture view of the furnace crucible profile under real time operating conditions. The powerful trending facility for analysing both measured and calculated values is discussed. The required instrumentation hardware as well as the installation thereof is described, with special reference to an electrically insulating thermocouple socket design. Finally feedback is provided on the first year?s performance of the system installed on an open ferrochrome furnace at Assmang Chrome, Machadodorp, South Africa.

Jan 1, 2007

By B. W. Lee, P. O?Shaughnessy

The practice of manganese ferroalloy smelting has traditionally been based on utilising oxide ores which typically contain a high level of manganese. This preference for oxides has even been extended to the modification of natural carbonates into nodulized oxides. However smelting practices developed over the past 30 years have created a market for natural manganese carbonate ores, driven in part by the unique properties that this type of ore can offer. An understanding of the mineralogy of carbonate ore and its thermal properties has provided important information which enables furnace operators to take full advantage of the chemical differences. However changes to traditional operating practices have been necessary. Once furnace operations using natural and unmodified carbonate ore have been mastered, the unique chemical features of manganese carbonate ore are able to contribute, not only to new product development, but also to cost savings. The use of natural manganese carbonate ore is now a well-established aspect of the industry. The sustained increase in demand for carbonate ore worldwide over the past several years confirms acceptance of its quality. There are effectively few limits to its successful use.

Jan 1, 2004

By Dick Minnitt

Large-scale variability in process plants and process control can be identified and controlled through disaggregating the overall variability in a process stream. Conventional statistics and Statistical Process Control (SPC) fail to address the concept of stream heterogeneity, therefore fail to identify and distinguish between the various sources of variability in a process stream. A modified set of 445 data from a process plant is used as an example to explain the benefits of variography in process control. Large-scale variability, usually in the form of product composition cycles and chemical cyclic variations may be manifest throughout a sampling system or a process plant, but this type of variability is most easily discernable in one-dimensional process streams. The Moving Average is a powerful tool for identifying large and small scale variability and cyclical behaviour in process streams, while the variogram is a custom built tool that allows the components of variability to be identified and resolved. The positions in the variogram at which the different variance can be read and the nomenclature of these types of variability is described. The transfer of variances converted to standard deviations to the Control Charts, allows an operator to appreciate the appropriateness of Upper and Lower control and specification limits. The overall contribution of the various sources of variability is represented in a pie diagram.

Jan 1, 2007

By C. Birch

"The purpose of this study was to establish the impact of discount rates on cut-off grades for narrow tabular gold deposits as characterized by the goldfields of the Witwatersrand Basin in South Africa. There are various methods available for determining the cut-off grade, from simple breakeven calculations to sophisticated software packages that consider a variety of inputs to optimize the cut-off grade. For this study a simple financial model was created in Microsoft Excel® that links the ore flow, block listing, and the cash flow. This allows the cut-off grade to be optimized considering how the cost of capital and chosen discount rate affect the cash flow.The discounted cash flow (DCF) and resultant net present value (NPV) are a widely used valuation method for production properties according to the South African Code for the Reporting of Mineral Asset Valuation (SAMVAL Code). The financial model in this study utilizes the Solver function, as well as simple Microsoft Excel spreadsheet formulae to optimize the NPV. Solver was chosen as it is a standard feature in Excel and thus no additional software costs are incurred beyond the basic Microsoft Office suite. For the purpose of this study, just narrow tabular gold deposits of the Witwatersrand Basin were considered. An example of a typical ore block listing, as well as the costing figures, was obtained from an operating gold mine. The results obtained from the study financial model were compared to the current cut-off grades obtained from the mine using their proprietary optimizer program, and were found to be comparable. The methodology utilized for this study thus appears valid.The cut-off grade was optimized considering the cash flow, which includes the variable mineral resource royalty tax, the variable gold income tax, as well as the discount rate. By comparing the resultant NPVs using discount rates of zero, 9%, and 12%, the impact of the discount rate on cut-off grades, resultant life of mine, and average mining grades (AMG) could be compared for the example ore block listing. The South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code) does not require operations to state if a discount rate was considered in determining mineable reserves. Mining companies approach the question of applying discount rates in determining their cut-off grades, and thus mine planning strategy, in different ways. Due to the negative impact that optimizing purely on NPV has on the life of mine, some choose to optimize only on profit. Other companies have reverted to utilizing pay limits as their primary grade planning strategy. The calculated cut-off grade is then considered to be another planning indicator rather than a hard determination of mineable reserves."

Jan 1, 2016

Escalating energy and electricity costs have become one of the largest drivers of expenditure in mining operations. Over the last eight years, energy costs have tripled when expressed as a percentage of total expenses in South African mines. In an effort to manage and reduce electricity costs, energy management strategies can be developed, inefficient operating units replaced, and the operation of energy-consuming components of ventilation systems optimized. Power consumption on mines is controlled mainly by three strategies, namely load clipping, by which energy use is reduced for certain parts of the day; load shifting, by which energy use is shifted to other parts of the day; and energy efficiency, by which energy use is reduced permanently. In this paper several projects that were implemented using the first two strategies of load clipping and load shifting are investigated. The actual and potential savings that can be achieved by implementing such energysaving interventions are presented. To reduce the operating costs of ventilating and cooling underground mines permanently, system optimization studies must be completed. Methods that can be used to reduce energy usage by optimizing cooling and ventilation systems are described, and network simulation models that accurately reflect the current and planned ventilation conditions are discussed. These models are then used to examine various options for improving the overall ventilation and cooling strategy. Different optimization scenarios can be simulated, and this assists the design engineer in obtaining the most energy-efficient system that will satisfy design workplace conditions. The final outcome is a reduction in operating costs, which can result in better operating margins and an extension of the life of mine.

Jan 1, 2014

By L. K. Witika, J. H. Masinja

"Investigations of flotation characteristics of Lumwana and Kansanshi ores using formulated frothers were carried out. Of the six frothers tested, two came from the alcohol family, two from the glycol family and last two were formulated products. The initial work involved determining the optimum mesh of grind and frother dosage for Lumwana and Kansanshi ores. Further work involved carrying out surface tension, bubble size and froth stability measurements. Finally, water recovery tests were conducted at Lumwana and Kansanshi mine sites. For froth stability tests, six frothers were tested on a two-phase (water–air) system using the Bikerman column flotation cell, while water recovery tests were conducted using a total of seven frothers, including the standards for each plant. The results of the testwork showed that (i) although a stable froth is essential for optimum recovery of valuable minerals, a higher molecular weight frother, like Dowfroth 250, caused poor selectivity when used on fine ores and (ii) a lower molecular weight frother was suited for Lumwana ore, while a mid to higher molecular weight formulated product was suitable for Kansanshi sulphide ore. INTRODUCTION Investigations of flotation characteristics of Lumwana and Kansanshi ores using formulated frothers were carried out. The initial work of this project involved determining the optimum mesh of grind and frother dosage for Lumwana and Kansanshi ores. Further work involved carrying out surface tension, bubble size and froth stability measurements. Finally, water recovery tests were conducted at Lumwana and Kansanshi mine sites. In order to investigate the gangue entrainment levels in the Lumwana and Kansanshi sulphide ores, two well-known methods (froth stability and water recovery) were used. Firstly, froth stability tests were conducted using six frothers, two from the glycol family (Dowfroth 200 and Dowfroth 250), two from alcohol family (MIBC and pine oil) and other two from the formulated family (Betafroth 20 and Betafroth 245), at the University of Cape Town’s Centre for Mineral Research (CMR) laboratories. Froth formation and stability measurements were conducted using the Bikerman column flotation cell."

Jan 1, 2015

By G. V. R. Landman

In the early days of underground coal mining, the use of explosives to break coal resulted in a large number of disastrous methane and coal dust explosions and consequential loss of life. Research by the British, French, US authorities, amongst others, introduced many practices that significantly reduced the occurrence of such incidences. The use of explosives designed to be safe in a methane atmosphere, plus the creation of a second free face were two such practices which became commonly used in coal mines all over the world including southern Africa. With its associated coal cutting equipment and labour, the cost of creating a second free face is significant and this, together with the constant drive to reduce mining costs in a competitive market, causes mine management to regularly question the need for the second free face. Also, the safety and nature of permitted explosives has changed considerably since the days of black powder and nitroglycerine-based explosives with the introduction of water-based explosives. In southern Africa mining regulations pertaining to the blasting of coal has its origins in British research which was largely done in the first half of the twentieth century. More recent research by the US Bureau of Mine has resulted in a deeper understanding of some of the mechanisms of methane ignition by explosives and suggests that some of the earlier regulations can be relaxed to a certain extent without compromising safety. This paper gives an overview of the original research done in Europe and the more recent work in the USA, to give mine management and regulatory authorities a deeper understanding of the important safety issues when using explosives in a methane atmosphere. It also suggests that blasting off the solid is no less safe than using a second free face providing certain safety procedures are followed.

Jan 1, 2000

By Gerhard Nel, Huziel Masiiwa, Marthie Kotze, René du Preez, Simon Donegan

Tati Nickel is currently operating a hydrometallurgical demonstration plant in Botswana, using the Activox® process developed by LionOre Technology, to produce nickel cathode and a cobalt salt from a sulphide concentrate. Cobalt is extracted using Cyanex 272. This reagent also extracts all the iron, aluminium, copper, zinc, and manganese from the nickel stream. Versatic 10 carboxylic acid is then used as extractant to recover nickel from the stream, separating it from calcium and magnesium, and upgrading it to provide a suitable advance electrolyte for nickel electrowinning. However, the selectivity of Versatic 10 for nickel over calcium is limited, and gypsum formation in the extraction circuit is a problem when it is attempted to maximise the recovery of nickel. Mintek has developed a synergistic system with Versatic 10 for improved separation of nickel from calcium and magnesium. Laboratory test work was conducted on the raffinate of the cobalt solvent extraction circuit to optimise the Versatic 10/Nicksyn? (Mintek synergist) system to be employed. Extraction and stripping parameters suitable for this stream were optimised in the laboratory and then applied on the demonstration plant. A commercial batch (0.5 tons) of Nicksyn? reagent was produced for the demonstration plant. The laboratory test work results and the demonstration plant performance are discussed in detail in this paper.

Jan 1, 2007

By N. Mutemeri, T. -L. Field, M. Chuma

The categorization of artisanal and small-scale mining has a significant impact on perception and understanding of the sector, particularly from a livelihood perspective. Several developing countries classify different types of artisanal and small-scale mining based on legal status. Given the nature such activities, the tragedy of the commons theory has been applied to understand the inevitable environmental, economic, sociocultural, safety, and health negative externalities – which are products of informality and illegality. Consequently, formalization is a panacea to sustainability. This article aims to offer a conceptual organization and foundational knowledge for characterization of artisanal and small-scale mining. It seeks to identify existing literature on the subject to avoid replication and acknowledge other scholars. Moreover, the article aims to place the study within the context of existing literature, establishing relationships with other studies and why the research is necessary. This paper pinpoints gaps left from other studies in so far as the characterization of artisanal and small-scale mining is concerned. Thus, reviewing literature abetted in finding similarities and differences on how artisanal and small-scale mining is defined from a scholarly and legal basis. The paper ascertains major claims made by earlier research on this topic, such as environmental impacts, the lack of adequate regulatory framework, and presents querying and probing questions lacking from other studies.

Jul 10, 2024

The environmental impact of solid waste materials is closely linked to their potential to produce a hazardous leachate once deposited in a landfill. This potential is conventionally assessed with simple laboratory batch leach tests, which find more and more frequent application also in the minerals and metals industry. Such tests are intended to help distinguish between high and low risk wastes, but are completely unsuitable to allow quantitative prediction or modelling of the long-term leachate generation potential. In the present approach the leachate generation process is perceived as a combination of bulk convective transport, stagnant zone and inner particle diffusion, as well as reaction kinetic effects. Model equations are formulated accordingly. A modelling frame work, WASTESIM, has been developed at UCT, which allows flexible combination of the model components and simulation of leach scenarios. Quantitative model parameters are obtained from a systematic laboratory study on the waste material in question. The combined assessment and modelling approach is demonstrated with a study on Cr (VI) leaching from a ferro-chromium slag material. Although not straightforward, the approach is particularly useful in determining long-term liabilities in the context of waste disposal sites with considerably more reliability than has previously been possible. Keywords: waste deposits, waste leaching, heap leaching, environmental, risk assessment, Cr (VI), ferro-chromium, slag.

Jan 1, 2000

By D. A. Singer, J. C. Griffiths

"One of the most useful approaches to a complex problem is to model the system which gives rise to the problem and to perform simulations through the model to find appropriate solutions. The Engel Model may be used as such a simulator to investigate the problem of the exploration for natural resources.The Engel Model is based on a two-stage search procedure in which a known area (A) which contains m prizes is subjected to search by n coverings. During the first-stage search the sensor system records signals which may be a response from prizes (that is, true signals) or may be false. Signals tend to cluster around a prize and a cluster size consists of s signals. If a circle of radius R is drawn around each signal some will overlap and the overlap from s signals contains a prize. The cost of a single covering in which each point of the area comes under observation once, is designated E1. Second-stage detailed search is expensive and is confined to areas of overlap of s circles; it leads to the location of prizes. Second-stage search of the whole area costs Ea units. The expected value, V, of a prize is known and its development cost is E3 units.The sensor system characteristics are defined by the circle of radius R around a signal, which should be small compared with the total area A and enters the model as a parameter a x R2/A. The probability of a false signal during a single covering of a circle of radius I is a known constant, A.This model was applied to the search for uranium ore bodies using two different types of occurrence. In the first, the Wyoming Basin type, the area is relatively large (A = 1 496 square miles) and a few (m = 4) large prizes occur (expected value V = $30 million). In the second area, which represents the Ambrosia Lake region of New Mexico, the area is smaller (A = 212 square miles) and contains many (m = 200) smaller prizes (expectedvalue of a prize V,$2 million). The three costs, E1, E2, E3, are adjusted to the different circumstances in the two areas.Simulations were performed using n = 1 to 40 coverings with cluster sizes s = 0 to 19; the radius R was varied from 0.52 to 3 miles (and, therefore, a = 0.002 to 0.133 0, respectively, dependent on the area of interest). The value of A was varied from 0.01 to 0.10.Profitable programs were found over a wide range of the parameters; the two areas required different strategies to achieve maximum profit. In the Ambrosia Lake region a few passes (n = 4 to 6) with small cluster sizes (s = 2 to 6) are more profitable, whereas in the Wyoming Basin region a large number of passes (n = 35 to 40) and cluster sizes of s = 5 to 10 are most profitable.As pointed out by Allais (1957) the larger prizes are the most important in deciding the successful outcomes of exploration programs, and the profit margin in the search for a few large prizes is sufficient to yield success over a wide range of programs. Such programs require very large investments if they are to be successful.To refine the Engel Simulator as a decision-maker in selecting the most profitable exploration programs it is necessary to obtain firm estimates of the sensor system characteristics, that is, of R, a and ? (lambda)."

Jan 1, 2014