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By David S. Bolin, Bruce Kennedy, Leigh A. Readdy, Graham Mathieson

INTRODUCTION The estimation of ore reserves is a process that begins with the earliest exploration stages on a property and continues throughout any subsequent evaluation and exploitation of the deposit. During exploration and preliminary evaluation, the results of these reserve estimates constitute the basic data for prefeasibility studies and economic analysis. The decision to continue exploration and development or to abandon a prospect is often based upon these studies. During the active life of a mine, reserve computations are continuously revised to assist in development planning, cost and efficiency analyses, quality control, and improvement of extraction and processing methods. Accurate reserve estimates are also required when financing a project, purchasing or selling a property, and for accounting purposes such as depletion and tax calculation. It is important to remember that the reliability of ore reserve estimates varies progressively through time as more and more information becomes available. The lowest order of reliability of estimation of reserves exists at the time of discovery. The maximum level of certainty concerning the ore reserves within a deposit is reached when the deposit is completely mined out. Between these two extremes are variable levels of certainty as to the tonnage and grade of the resource. This is particularly true of that portion of the mineral resource that constitutes the "minable reserve," as this portion is dependent upon economic as well as geological and technological factors. In the following discussion, several of the factors affecting ore reserve computation and some of the commonly used methods of calculation are presented. The first part of the discussion is confined to classical methods of hand calculation utilizing level maps and sections. The second part of the discussion presents an overview of somewhat more sophisticated methods of geostatistics which have been developed within recent Years. Geostatistical methods frequently provide the best ore re- serve estimates for many deposits. However, a digital computer is required for such geostatistically derived estimates due to the number and complexity of the cornputations involved. For many properties the classical nongeostatistical methods are adequate, particularly in the early exploration stages. In fact, it is the author's contention that even at those properties where the geostatistical approach is employed for reserve estimation, the geological and engineering staffs should prepare an estimate by traditional means. This provides an internal audit for the reserves and at the same time requires a continuing close appraisal of geologic problems that influence the presently known geostatistically estimated reserves and production at the mine.

Jan 1, 1982

By Peter Keppler, Charles Jackson

WHY DO AN AUDIT? There is increased enforcement of environmental laws and regulations at State and Federal levels with attendant steep fines and even the possibility of jail sentences. We are all aware of environmental and public health and safety incidences (i.e., Love Canal, Bhopal) which have led to stringent laws and regulations (i.e., CERCLA, RCRA, SARA). In some cases, the courts have specified that a company institute an audit program as a condition of settlement of claims which related to lack of environmental control. The U.S.EPA issued an Environmental Auditing Policy Statement in the November 8, 1985 Federal Register (pp. 46504-46508) which encourages the use of environmental auditing by regulated entities. Elements of what EPA considers to be an effective environmental auditing program are outlined and briefly explained. These factors combine to indicate why there is a growing number of companies which have instituted an audit program. Briefly, the program can and should be used to monitor compliance with environmental regulations and corporate policy, to prevent violations, to improve policies and procedures, to raise the level of environmental awareness, to encourage communication among operations and all management levels about environmental problems, and to measure risks and control costs. AMAX Inc. has had an environmental audit program since the early 1970's. The AMAX Environmental Affairs Department, working with the Law Department, oversees and coordinates environmental audits and analyzes the findings which an audit reveals. Facilities are audited on a regular schedule; those having the greatest potential for environmental liabilities are audited at least annually; other facilities are audited less frequently. The question of who performs the AMAX audits was settled in favor of the audit team being independent of personnel from the facility being surveyed. Other methods of auditing could be the following: - Independent contractor (Appendix A) - Combination of independent contractor and in-house staff - Self-audit by site personnel The merits and demerits of who should conduct the audit can be analyzed to suit your particular needs. Next you need to decide on the procedure for the audit and the form for reporting and follow up. Environmental publications referenced in Appendix B can be helpful to you at this point. After deciding on the form of auditing, a schedule is prepared and followed to the closest extent possible. This schedule should be published and distributed to the sites so facilities know when they are being audited. This is not designed to be "a game of hide and seek." Various elements of the AMAX Audit Program are as follows: Team selection Pre-visit preparation Site visit Exit interview Report Using the audit Follow-up Team Selection The usual make-up of the team is the audit manager, the environmental specialist who normally provides assistance to the site or has knowledge about the operation, and a legal representative if his or her schedule allows. The legal representative will review the findings of the audit team if a personal visit is not timely or necessary. Size of the team can be expanded, but a minimum of the audit manager and the environmental specialist is best. Two sets of observations are better than one. The environmental specialist can also provide the rapport which is beneficial to creating the appropriate tone so that the site people will be as cooperative as possible. This is not to be an antagonistic exercise.

Jan 1, 1991

By Priscilla P. Nelson, Francis L. C. Fong

Introduction Fracture mechanics is the study of the behavior of cracks and their modes of propagation. During cracking, energy is consumed in creating new surface area. The more energy a material absorbs, the higher is its fracture resistance. This fracture energy is provided either by work done externally, by the release of elastic strain energy within the cracked body, or by a combination of these two effects. Fracture resistance is measured in terms of either the stress intensity factor, K, or the energy release rate (also referred to as crack driving force), G. For linearly elastic materials, these two quantities are related by the following equation: [ ] where [u] is Poisson's ratio and E is the modulus of elasticity. Both K and G are direct functions of the applied force and the crack length. The process of rock cutting with full-face tunnel boring machines (TBMs) involves the indentation of a rock surface by rolling disc tools. Excavation occurs as fractures, extending from the locus of chip indentation, propagate between concentric disc grooves and liberate rock chips from the intact rock face. Since disc cutting is achieved by a fracture process, it is logical to anticipate that differences in cuttability of a variety of rocks should be related to the variation of fracture material properties among the rocks. Such a relation has been demonstrated between the performance of full-face TBMs and the critical crack driving force for excavation in relatively high strength, brittle, low porosity, isotropic rock (Nelson et al., 1985). The objective of this paper is to report on the results of a continued investigation of the relationship between fracture material properties and the effectiveness of disc cutting. Additional reliable data on full-face TBM performance is difficult to obtain, so that the results of disc linear cutter tests performed by the Transport and Road Research Laboratory (TRRL) (U.K.) are utilized in this study. Fracture Material Property Evaluation If a crack tip is subjected to a perfectly plain strain condition, many materials will behave in a brittle manner, and the material resistance to fracture is constant during crack growth. This resistance is referred to as the plain strain fracture toughness, believed to be a material property. The standard testing procedure for this parameter is given in the American Society for Testing and Materials (ASTM) test designation E399. To ensure plain strain conditions, acceptable specimen geometries are specified. Unless these geometric specifications are adhered to, the measured fracture resistance is regarded as the apparent fracture toughness, and a subscript Q is used, as [ ]. The methodology adopted by ASTM E399 is within the framework of Linear Elastic Fracture Mechanics (LEFM). This approach assumes that material resistance against cracking is developed instantaneously, without initial stable or subcritical crack extension. Prior to crack advancement in rock, however, much of the crack driving energy is absorbed in a localized volume in front of the crack tip, referred to as the plasticity or microcracking zone. This capability for energy absorption substantially increases material resistance, and a crack may be arrested unless an increased crack driving force is applied. The LEFM or plain strain assumptions would underestimate the actual fracture resistance of such a material. Such a conservative approximation may be desirable in the design of structures against fatigue or brittle failure. In mining or tunneling, however, an underestimation of crack resistance can lead to the selection of underrated excavation equipment and a decrease in production efficiency. The development of fracture resistance in rock is best described by the material resistance curve, or R-curve, which is a plot of fracture resistance as a function of crack extension. Typically, peak resistance is only reached after a finite amount of subcritical crack growth. The

Jan 1, 1986

By Robert W. Lawson

INTRODUCTION Prior to 1705, underground mining was limited to mineral deposits located above or a very small distance below the water table. The development of the steamdriven mining pump was motivated by the need to extract minerals from deposits considerably lower than the water table. Today, the majority of mine pumps are driven by electric motors, although some small utility pumps are driven by compressed air. Of the numerous types of pumps that might be applied to mine service, the two types used most frequently underground are the centrifugal and plunger pumps. Each of these types has its proper application. In most instances, plunger pumps are best for handling low water volumes against high heads, while centrifugal pumps effectively handle either low or high water volumes against low heads or high water volumes against high heads. This chapter describes pumps applied to underground mine service, where the mine service consists of mine drainage (removing mine water as it accumulates), mine dewatering (removing water from a flooded mine), and pumping for special applications such as hydraulic mining and hydraulic hoisting. CENTRIFUGAL AND PLUNGER PUMPS Modern mine pumps are classified as either centrifugal (kinetic) or plunger (positive-displacement) pumps. The following paragraphs describe each of these classifications. Centrifugal Pumps Centrifugal pumps may be grouped into various types, depending upon their various features: Number of Stages: In a single-stage pump, the total head is developed by one impeller, while a multi¬stage pump utilizes two or more impellers acting in one casing to develop the total head. Fig. I shows a cutaway view of a single-stage horizontal split-case double -section centrifugal pump. Fig. 2 shows a cutaway view of a six-stage medium-pressure split-case diffuser-type centrifugal pump. Type of Casing: A volute pump has a casing in the form of a spiral or volute. A circular-casing pump has a casing of constant cross section concentric with the impeller. A diffuser pump is equipped with a diffuser that converts velocity head to pressure head. Shaft Position: A horizontal pump normally has the shaft in a horizontal position, while a vertical pump normally has the shaft in a vertical position. Fig. 3 illustrates a vertical turbine-type slurry pump. Suction: A single-suction pump equips the first stage with a single-suction impeller, with fluid entering the impeller on only one side. A double-suction pump equips

Jan 1, 1982

By Geoff W. Seward, Charles J. Maes

INTRODUCTION The work of the metallurgical engineer engaged in developing a leach, solvent extraction electro- winning process usually begins in the laboratory and generally proceeds via pilot plant testing before finally resulting in a commercial operation. The path leading to the development of the eventual process will involve a test program on leaching in order to derive information on the amenability of the copper-bearing material to acid dissolution, under various conditions. Commonly in North America the leach process of choice is either dump or heap leaching but it may also be in-situ leaching or the treatment of mine waste- waters and bleed streams. In the past, agitation and vat leaching have also been included in the list of options. Currently the economics of copper production dictate that only material of mineralogy and grade, capable of being leached without prior milling, will lead to a viable process. This is not necessarily true in other parts of the world where grades are higher and milling costs lower and therefore this paper con- fronts all the techniques available to the metallurgical engineer in terms of the evaluation of the solvent extraction process. Understanding the objectives of a laboratory and pilot plant evaluation of a solvent extraction route is important and these are described in some detail in this paper. Of at least equal importance is understanding limitations of such a test program and this aspect of process development is also discussed with reference to the kind of equipment and experimental practices that have been shown to produce results consistent with the objectives. WHERE TO BEGIN? At the inception of a project much information is developed on the variables of the leach process and indeed in some instances the type of leach that best suits the ore to be treated is the subject of intense investigation (Wadsworth 1983). The decision to treat the leach solution by solvent extraction focuses attention on the selection of the extractant most suited to the nature of the chemical composition of the solution. A laboratory screening program will probably need to be arranged in order to assist in narrowing the options and the following is suggested for this initial screening. Selection of a Representative Leach Solution This is preferably obtained from leaching a representative sample of the ore under conditions likely to pertain in the commercial leach circuit. As the conceptualized circuit flow sheet will undoubtedly involve the recycle of aqueous solutions via the leach, then it is desirable to know the nature of and the likely level of the impurity ions in the solution as well as the concentration of copper. The other most important parameter that is required is the free acid (Anon, Acorga Analytical Method) content of the solution. As a rule of thumb, it is always true that recovery across SX is maximized as the pH of the leach solution rises. Whilst a high pH may be desirable for SX recovery, it is not always desirable for the pH (or more correctly, the free acid) of the leach to rise too high. The working range, therefore, tends to be between 1.5-2.5 pH. At an early stage in process development it is likely that a number of ill-defined conditions will exist, making it difficult to decide on typical leach conditions in which case the screening tests should be carried out using a synthetic leach solution prepared from laboratory chemicals. In doing this the copper and free content should be carefully controlled along with the appropriate addition of major impurity ions as their sulphate salts. Preparation of Suitable Organic Solutions Manufacturers information sheets on the reagents to be tested are required at this stage The information necessary to make an informed judgment on reagent performance is: Copper Uptake Value. This will indicate the amount of copper that can be extracted by a reagent as a function of its operating concentration in a

Jan 1, 1986

By R. D. H. Bedd

GEOLOGICAL NOTES The area under discussion is situated approximately 150 m north of Loraine No. 3 shaft at ± 1500 m below surface. The block being mined extends from about halfway between 50 and 52 levels to just below 48 level (see Fig. 1). The EB reefs form the lower portion of the EB zone of the Elsburg series and in the 81 line area the various conglomerate bands show the best development. Up to 18 separate reef bands are developed and the distance from the bottom conglomerate band to the top is ± 26 m. The thickness of the quartzite which forms the middling between the various reef bands varies from 0.1 to 2 m. The strike is roughly north-¬south. The reef bands are payable individually. However, owing to the steepness of the reefs and their close prox¬imity, conventional mining would prove very difficult. The nonpayable reef bands all carry varying amounts of gold and the whole area is a massive payable reef body approximately 26 m wide and 60 m high at 300 to 400 m on strike. The major structure of the area consists of a north¬-south trending syncline. The western flank of the syncline has a steep easterly dip, in places approaching the vertical. This flank cuts out against the overlying rocks of the EA zone. The latter forms a noncon¬formity with the underlying EB zone. The eastern flank of the syncline dips to the west at an average dip of 0.17 rad (10°). The 0.1 rad (6°) north-plunging syncline was sub¬jected to severe faulting. The most important are the Nos. 4 and 10 faults, both of which have a roughly north-south strike. The No. 4 fault dips to the west at an angle of 1.04 rad (60°) with a downthrow of approximately 150 m to the west. The dip of the No. 10 fault is 0.69 to 0.81 rad (40° to 50°) west, with the western block having moved 150 m updip relative to the eastern block. The EB reefs are being mined by the sublevel stoping method down from the sub-outcrop position to the cutoff against the No. 4 fault. On the downthrow side of the No. 10 fault, that is just above the 54 level, two reef bands are payable and will be mined conven¬tionally. ROCK MECHANICS From the section in Fig. 1, it can be seen that the area under consideration is surrounded by stoped-out areas. This will naturally change the stress distribution extensively. The only way to calculate the stress field for such a geometry is to use the finite element method. It was established that this method worked for the present geometry and so the method was applied to predict the stress behavior of the final geometry. From the results, it appeared that the effect of the old stopes was to destress the area. There are, however, some areas-such as the 50 and 48 north footwall haulages-which will require continuous attention. In these two footwall haulages, deterioration can take place due to tensile stress which

Jan 1, 1982

By A. K. Mukhopadhyay, B. Sikdar, V. P. Arora

Introduction During the past several years, persistent concerns about an economic slowdown in India have tempered capital-expan¬sion plans. This has encouraged companies to find methods of increasing the capacity of existing production equipment. One of the more cost-effective methods of increasing produc¬tion capacity without major capital investment is to improve equipment maintenance to prevent needless machine down¬time. This can have a significant financial impact because of reduced maintenance costs and increased machine availabil¬ity. The maintenance program employs different techniques, but the analysis of the vibration behavior of machine compo¬nents to assess their condition was found to be the most accurate technique for monitoring various machine disorders. A dragline that handles overburden in open pit mines is one of the more capital-intensive pieces of production equip¬ment. It is imperative that the machine be run at its optimum capacity under the prevailing environmental conditions. Condition monitoring of the various components of the dragline through vibration analysis not only improves the machines availability but also ensures a long operation time free from sudden failure. This paper describes the application of vibration monitor¬ing and analysis techniques to assess the components of a W2000 dragline. The paper reveals that condition monitoring through vibration analysis can be as valuable in failure prevention as it is in failure analysis. Finally, the paper presents an approach to a knowledge-based expert system to the quick and correct diagnosis of mechanical faults in a dragline. Equipment A dragline is an intermittent-discharge-type excavator having a long boom at one end. Unlike other excavators, the bucket is not rigidly held by the frame structure. In favorable geomining conditions, the intensive operation of these exca¬vators is the least-expensive means of overburden removal. The basic working elements of this equipment are the hoist system, the crowd and retract system, the wing mechanism and the propel mechanism. The walking dragline is accepted as the most economical machine for stripping overburden at depths of up to 60 m (200 ft). They are electrically powered and the various motions are effected by individual drives. The Ward-Leonard system is used to provide the optimum flexibility in controlling different dc-drive motors. To mini¬mize the cost of mineral extraction, the largest such machine in India has a 24-m3 (850-cu ft) bucket with a boom length of 96 m (315 ft). Draglines are very costly, and considerable financial penal¬ties may arise from sudden stoppages due to component fail¬ures. Thus, operational reliability is of the greatest importance. Active measures are now being taken to minimize downtime by adopting condition-based maintenance techniques. Though a number of techniques come under this scheme, it has been observed that assessing the health of the dragline by measuring vibration is the best method of determining the dynamic behavior of its various rotating components to avoid any catastrophic failure. Based on criticality, the vibration-behav¬ior of the following components are studied: • motor-generator unit, • exciter unit, • hoist motor-gearbox unit, • hoist drum-gearbox unit, • drag motor-gearbox unit, • drag drum-gearbox unit and • swing motor unit The approach Increases in the vibration levels in different subsystems of the dragline were observed due to the presence of faults such as unbalance, misalignment, looseness and bad bearings. A vibration behavior study included the measurement of vibra¬tion level, trend analysis of time-domain vibration signals and vibration frequency analysis at bearing points of the components. A vibration meter, a vibration analyzer and a data collector are used. Vibration-level measurement. When the dragline was assembled and put into operation for the first time, vibration data were collected to generate baseline data for the equip¬ment (based on International Standard ISO 2372). After¬wards, the vibration levels were recorded regularly using a vibration meter. The measurements were taken at all bearing

Jan 1, 2000

By Richard Stahura

The longtime rule-of-thumb for conveyors was that only one cleaner was needed to solve carryback problems and help keep belt replacement costs under control. That is now being rethought. Belt-cleaning systems manufacturers, designers, and users are shifting to the view that multiple cleaners, placed at key locations on the conveyor and properly maintained, are necessary to solve today's material build-up (carryback) problems. There are still not many statistics on conveyor belt cleaning. But some recent studies support this belief. One study contends that the plant maintenance engineer's biggest problem is keeping the conveyor system running efficiently. The study also said the conveyor itself is responsible for most plant shutdowns. An unscheduled conveyor shutdown can cost more than $100,000/hr and run into millions in lost production in a given year. Other studies pointed out that belt replacement is the greatest single cost of the conveyor system. These studies allude to an important fact: cleaner belts lead to reliability and longer belt life. They showed that a critical relationship exists between characteristics of material being moved and the design of all major conveyor components. In practically all situations this relationship is keyed to belt cleaners, which have long been considered "add-ons" or "accessories." At the Fifth International Coal Utilization Exhibition and Conference, the Sammis Station-Ohio Edison Co. said it installed four belt cleaners on each problem belt. The company found that under certain conditions, when the coal is wet and sticky, carryback can be so heavy that it will flow over two cleaners. Before installing the cleaners, it was necessary to schedule a cleanup crew of four men each day and rent a large vacuum truck for an eight-hour shift. In addition, the company dredged the harbor three times a year, to remove coal spillage. Once the cleaners became operational, however, cleanup costs were reduced to a few days labor every third month. Renting the vacuum truck crew was also eliminated, and harbor dredging became necessary only once each year. In addition, the Mechanical Handling Engineers' Association (MHEA) in London pointed out that standards for cleaners are sorely lacking in the industry. MHEA called for instituting such standards in the future. They also reaffirm using multiple belt cleaners for increased efficiency. MHEA pointed out that some conveyor belts can be cleaned by one device, provided that it is correctly installed and adequately maintained. But MHEA recommended that a system approach be adopted, since this has proved more effective in practice. There are two main reasons why one belt cleaner fails to solve most carryback problems. First, management often reasons that the design of the current cleaner has probably been around for years, so it "must be good." This logic leads to a continued investment in keeping the current model operating, which includes pouring substantial sums of money in "housekeeping" manpower hours because the cleaner does not clean. Second, most single-belt cleaners are specified too late in the design process (indeed, some after the system is operational). This complicates matters since cleaning efficiency is directly proportional to when they are specified: the later the specification, the less efficiency. Cleaning equipment should be taken into consideration before the conveyor's structure is designed and fabricated. Otherwise the space available to install adequate cleaning equipment at the head pulley may be inadequate. Instead of matching conveyor with proper cleaner (as would occur during the design of the conveyor itself), designing a cleaning system "after-the-fact" becomes a matter of matching cleaner to conveyor. This limits choices in cleaners and, therefore, overall cleaning effectiveness. This is why after-the-fact designs of single belt cleaners are costly and rarely successful. While it is always best to specify belt cleaners during early design stages, the multiple-cleaner systems approach makes the timing of cleaner installation less critical. Because of flexible mounting hardware, a well-designed system can lead to 99% efficiency in cleaning and put an end to carryback even after a system is operational. Multiple-Cleaner Systems Approach In a multiple-cleaner system approach, the first step is to achieve a thorough understanding of the material to be moved under the worst conditions. With such un-

Jan 4, 1984

By Erich U. Petersen, W. Dan Hausel, William J. Tafuri, Donald M. Hausen, Douglas N. Halbe

The geology of Wyoming has been compared to some of the richest precious metal producing regions of the world including South Africa, Western Australia, and the Superior Province of Canada. These areas are all underlain by ancient cratons that contain some of the oldest rocks on the surface of the earth. But unlike the other cratons, the Wyoming craton (also termed the Wyoming Province) has been greatly modified by Laramide tectonics which thrust slices of the ancient craton through younger Phanerozoic sedimentary rocks. Unfortunately, the nature of the Laramide tectonics left vast regions of the craton at the bottom of the Tertiary basins unavailable to direct examination, but the exposed slices in the mountain cores contain some of the best exposures of Precambrian rock in the world. The cores of these uplifts contain extensive regions of relatively unmineralized gneiss and granite that include scattered fragmented supracrustal belts formed of metamorphosed volcanic, plutonic, and sedimentary rock. Some of these supracrustal belts exhibit similarities to the gold- and nickel- rich terranes of Western Australia. Yet these areas remain incompletely explored. Archean (> 2.5 Ga) gold deposits within the Wyoming craton are primarily confined to greenstone belts and related terranes. These supracrustal belts include relatively narrow vein and shear zone deposits with strike lengths of tens of feet to more than a mile. Some exceptional deposits possess widths of greater than 15 feet to possibly as much as 300 feet, but the majority have widths of± 5 feet. These belts include Cu, Ag, W, Fe, and Cr mineralization, asbestos and pegmatites, and anomalous Ni and Sri in addition to gold. The Proterozoic terrane (<2.5 Ga) exposed in the cores of mountain ranges in southeastern Wyoming includes a thick miogeosynclinal metasedimentary succession which unconformably lies on the Archean craton. These metasedimentary rocks are separated from a predominantly metavolcanic terrane to the south by a major Precambrian suture, or shear zone. The metasedimentary rocks north of the shear include quartzite-hosted stratabound Cu-Ag-Au deposits, Au-Ag veins, and Witwatersrand-type metaconglomerates with isolated gold anomalies. The suture includes scattered base and precious metal deposits in shear zone cataclastics. South of the shear zone, the metavolcanic terrane includes scattered volcanogenic Zn-Cu-Ag massive sulfide deposits, at least one Cu-Au porphyry, and two large layered mafic complexes. The northern edge of one of these layered intrusives yielded some platinum and palladium to miners at the beginning of the 20th century. Phanerozoic sediments host many precious metal anomalies. Some Au-REE anomalies occur in Cambrian conglomerates. Ag-Cu-Zn stratabound deposits are found in bleached Jurassic redbeds in the Overthrust Belt of western Wyoming. The broad Wyoming basins include many enigmatic gold occurrences and anomalies that can only partially be explained by detrital transport in fluvial systems. Many of these anomalies were probably geochemically transported and precipitated. Rocks of Late Cretaceous age along the flanks of the uplifts have numerous black sand deposits. These paleobeach placers contain concentrations of detrital heavy minerals with anomalous titanium, rare earths, and in some cases gold. Gigantic base and precious metal deposits are associated with scattered composite intrusives in the Absaroka Mountains in northwestern Wyoming. This deeply incised volcanic plateau includes several Tertiary age copper porphyry deposits with significant Cu, Mo, Ti, Pb, Zn, Au, and Ag resources that rival the porphyry districts of the Basin and Range Province. In the Black Hills of northeastern Wyoming, disseminated Au-Th-REE mineralization is found in association with fenitized alkalic igneous rock. In addition to disseminated mineralization-scattered gold, fluorite, rare earth and copper veins; lead, zinc, and silver replacement lodes; and tin pegmatites are found in this region.

Jan 1, 1990

By Walter C. Labys, William A. Vogely, David O. Wood

INTRODUCTION The past decade has witnessed a literal explosion in formal modeling of energy systems and markets. This rapid development was stimulated primarily by policy issues arising from the energy price shocks of 1973- 1974 and 1979- 1980. The suddenness of this interest is illustrated by comparing the current and earlier editions of Mineral Economics. The third edition, published in 1976, includes an addendum to the section of projection and forecasting methods because, Since the foregoing chapter was written, major events in petroleum have caused an explosion in formal modeling efforts in the energy field.a In contrast, this fourth edition includes the present chapter on energy modeling, and a separate chapter on nonfuel minerals modeling. The considerable interest in formal energy models is based on the complexity of the system, in particular the interaction between technical and engineering data and designs, and economic behavior of energy producers and users. Energy is a vital component in the economic and social well-being of nations, and must increasingly be explicitly considered in developing economic growth and welfare policies. Energy models can contribute to policy development and analysis, both by improved understanding of the energy system, and of the interaction between energy markets and the economy, and as an explicit means of analyzing and comparing the implications of alternative policy actions. At their best, formal models can clarify and illuminate policy options. In this chapter we will survey the objectives, methods, and potential contributions and limitations of energy system modeling. Section 2 considers the objectives, scope, and approaches to energy system and market modeling. Methodological approaches are then discussed more formally in section 3. Our approach is to intro- duce each model type and method via relatively simple generic models, illustrating their use by a selective review of the applications literature. Section 4 shifts the focus from modeling methods to procedures for model evaluation and improving model credibility especially in policy research and analysis. We conclude with some brief remarks on directions and opportunities for future modeling research. ENERGY MODELS: OBJECTIVES, SCOPE AND APPROACHES The concept of a model usually evokes an image of a complex, computerized system of mathematical or econometric equations providing detailed information concerning the operation of the process being modeled. In fact. models may be simple or complex, formal or mental, depending upon the purposes for which the model is intended. Simple judgmental models may be most appropriate when monitoring the overall performance of a process. When more detailed information is required and/or when the model

Jan 1, 1985

By E. D. Attanasi, M. W. Bultman, J. H. DeYoung

The 1987 recovery in the US mining industry permitted modest increases in exploration expenditures that year (Fig. 1). Favorable market conditions apparently allowed the gains to be sus¬tained in 1988. There was great uncer¬tainty early in the year as to whether world and US economic growth would be a casualty of the October 1987 worldwide stock market crash. By nearly all measures, the performance of the US minerals industry was strong¬. A weak US dollar and the strong growth of worldwide capital spending resulted in in¬creased US exports of con¬sumer and producer durable items as well as strong domes¬tic demand for metals. In fact, 1988 US steel industry exports reached levels not attained since the mid-1970s. It was re¬ported that steel industry labor productivity is now roughly twice the 1981 level. Among metals with signifi¬cant average nominal price increases in 1988 over 1987 levels were copper (43%), alu¬minum (52%0), and zinc (44%). Even though domestic copper production has grown since 1984 by 30% in mining and 24% in refining, em¬ployment in mining and milling is 4% below the 1984 level. Domestic unit costs are reported in the range of $1.10 to $1.33/kg (50 to 60 cents per lb). The US base metals industry is proba¬bly in its best cash position in many years. However, there has not been a large increase in exploration expendi¬tures. This is due mostly to the percep¬tion that worldwide capacity can easily be increased. Industry reports do show that "low cost" copper producers have been buying reserves from weaker com¬panies. The 1987 Society of Economic Ge¬ologists (SEG) survey of exploration activity indicated that 95 cents out of every exploration dollar spent by US and Canadian firms was for base and precious metals (Economic Geology, January 1989). Press reports, though, make it clear that most of that spending was targeted for precious metals. US claim staking data (Fig. 2) rein¬forces this suspicion. The apparent lag in new claim filings in Alaska and phe¬nomenal growth in filings in the lower 48 states suggests that exploration is directed at relatively low risk targets. In the conterminous 48, more than 40% of the new claims were made in Nevada, indicating an emphasis on gold (although even Nevada had some base metals exploration). Even with a price decline during 1988, the difference between the gold price and average global "cash" production cost of $7.30/g ($227 per oz) still leaves room for an attractive return (Northern Miner, 1988). Exploration plans and results Metals Economics Group (Halifax) indicated in its 1988 exploration survey that exploration expenditures by US and South African firms would be at about 1987 levels. It also reported that Canadian and Australian firms were ex¬pected to reduce their exploration spend¬ing significantly. Firms in both coun¬tries were caught in changes in tax laws. In Canada, the Mining Ex¬ploration Depletion Allow¬ance (MEDA) once permitted generous tax write-offs to in¬dividuals investing in miner¬als exploration. It was to be replaced in January 1989 with the Canadian Exploration In¬centives Program (CEIP). Although structured and ad¬ministered differently than MEDA, CEIP can provide an equivalent or possibly greater financial incentive for min¬eral exploration, for junior mining companies. In 1987, it is estimated that junior com¬panies accounted for two¬-thirds of the off-property (or grass roots) exploration ex¬penditures in Canada. Australia will revoke the tax exemption for gold in 1990. Australian operators, therfore, were expected to concentrate efforts on speeding up pro¬duction during 1988 and 1989. In 1988, Chile and Mali announced special efforts to attract gold explora¬tion by foreign companies. The Cana¬dian government continues to express concern about the write-off (and drawdown) of base metal reserves. Falconbridge did announce a new initiative to identify additional base metal reserves in the Sudbury district. Discoveries Gold deposits dominated discoveries

Jan 1, 1989

By Dwane K. Johnson

INTRODUCTION The small mining company faces the dilemma of how to finance the development of its properties because it doesn&apos;t have the financial resources to pay for the development costs from its own funds and doesn&apos;t have the financial strength which will enable it to borrow the money needed for development. However, with a little imagination and the right set of circumstances, a financing can be arranged for the small mining company. This paper is an attempt to describe the fundamental steps on how such financing can be obtained --in other words--what is required to provide ad- equate capital at a low cost for developing and bringing a mining property into production. Innovative financing follows from this. The basic keys for building and maintaining a successful mining company are "the four M&apos;s": Management, Market, Mine, and Money. The writer believes their order of importance is as presented and each is a building block required in order to obtain the type of financing that best suits the borrower and lender. MANAGEMENT Management must be experienced, highly organized, realistic, able to take advantage of opportunities and fulfill promises. Mine financing requires a variety of skills and concentration on the part of management. Management should have a thorough understanding derived from experience in geology, construction, mining and metallurgy and environment, marketing, and financial matters. Management must realistically visualize what will be produced at what cost and truly evaluate the risks associated so the proper security can be correctly designed. Since risk cannot be eliminated, the objective of management is to identify the risk which will be present in a given venture and assess the level of that risk which will be acceptable to the firm. Generally the risk which is present is subject to little or no modification. After management identifies and measures the acceptable risk the firm will proceed in a way that it will be least exposed. Management must determine its long-term objectives and strategies within the context of a constantly changing world. This question must be addressed before examining the sorts of risk which affect the development and operation of a specific property. The compilation and interpretation of "hard data" by competent people is good to a point but the experience and instinct of seasoned individuals are the important factors in management choosing a long-term direction for the corporation. The attitude towards risk greatly affects the goals of the corporation. Major risks in a mining project can be placed in four categories: 1. Market - Price, demand, substitution. 2. Costs - Capital, operating, financial. 3. Regulation. 4. Taxation. The feasibility study for a project is the fundamental tool used in the management of risk. Management should employ an experienced team with an established and well-understood set of ground rules for the preparation and assembly of a feasibility study. The necessary degree of realism is built into all levels of the study and if the project is technically feasible, the company&apos;s hurdle rate is then used to discount the base-case project cash flow in order to determine its financial viability. Understanding the geological significance of the mineral deposit is critical. There should be strong interplay among the pure regional geologist, the detailed mine geologist, the mining engineer, and the metallurgical engineer. The collaboration among these different disciplines will yield a feasibility study that is more reliable. The essence of this work must be appreciated and understood by the executives planning the financing. It is vital that they thoroughly understand the risks and make the proper risk assessments to cope with our rapidly changing market environment. Projecting future revenue values is paramount and is subject to much estimation. One way to mitigate fluctuations and the risk of falling prices is by selling production for future delivery. MARKET Since mining is a worldwide industry it is mandatory that bankers be aware of what is occurring in the marketplace, both foreign and domestic. The marketing of the production is a very important facet when considering financing for the small

Jan 1, 1987

By Mark A. Krall, Robert L. Geddes, James C. Frost

Introduction The Conda Partnership&apos;s Dry Valley phosphate mine is a thinly bedded, multiple seam open-pit mining operation where selective mining techniques are used to recover phosphatic shales. The mining methods used are truck/shovel and scraper/dozer operations. Ore is shipped 32 km (20 miles) by rail to a beneficiation facility. The ore is upgraded by washing and calcining. The mine and beneficiation complexes are owned by the Conda partnership. It is a joint venture between Beker Industries Corp., of Greenwich, CT, and Western Co-Operative Fertilizers (US) Inc., of Alberta, Canada. The Partnership operates as a separate entity of the two partners. The Dry Valley mine is located 48 km (30 miles) northeast of Soda Springs in Caribou County in southeastern Idaho. The mine is situated on the Caribou National Forest. Mining operations take place between 2 and 2.4 km (6400 and 7900 ft) in elevation. It is accessible partly by 32 km (20 miles) of paved roads and 16 km (10 miles) of dirt roads. The winters are long and severe, and the summers are short and mild. This article describes the history, geology, exploration, mining, and reclamation that makes this mine Idaho&apos;s largest producing mine and the western US&apos; leading phosphate producer. History and production In the mid-1950s, Western Fertilizers of Salt Lake City, UT, drove an exploratory drift in Maybe Canyon. A large bulk sample of phosphatic shales was analyzed for phosphate content and processing characteristics. No large scale mining or processing operations were undertaken. In the late 1950s, the Dry Valley property was sold to Central Farmers of Chicago, IL. No major operations took place. In 1964, Central Farmers sold the property to El Paso Products Co. of Odessa, TX. El Paso Products supervised the mining operations of Wells Cargo Mining Co. from 1965 through 1967. During this time, El Paso Products built a beneficiation facility and a fertilizer complex in Conda. A 32-km (20-mile) railroad was also constructed from the mine to this facility. From 1968 through 1972, the mine was shut down due to a depressed fertilizer market. In 1972, El Paso products sold its ore reserves, beneficiation plant, and fertilizer complex to Beker Industries Corp. In 1979, Beker Industries sold 50% of its ore reserves and 50% of its beneficiation plant to Western Co-Operative Fertilizers (US) Inc., of Alberta Canada, forming the Conda Partnership. It has operated the mine and beneficiation plant since January 1979. From the mid-1950s to the mid-1960s, no substantial production took place. From 1965 to 1967, El Paso Products stripped 3 Mm3 (4 million cu yd) and mined 2.3 Mt (2.5 million st). From 1972 through 1983, 50 Mm3 (66 million cu yd) were stripped and 18 Mt (20 mil¬lion st) were mined. Geology The Wells Formation forms high ridges and hillsides in the Dry Valley area. It is best exposed along the west face of Dry Ridge. It forms the imposing wall on the east side of Dry Valley. The formation is divided into two members. The lower member, about 213 m (700 ft) thick, is dominantly thin to medium-bedded limestone and silty limestone. It contains nodules and stringers of chert and minor sandstone. The upper member is composed principally of thick-bedded to massive cross-bedded, light-gray to orange-yellow, fine grained sandstone. There is some interbedded brown to light-gray limestone. This member varies from 369 to 457 m (1300 to 1500 ft). Recent investigations indicate that the upper Wells is of Permian age. Under some conditions, the Wells may be water-bearing. Otherwise, it has no apparent economic significance. Grandeur Member (Park City Formation) Overlying the Wells Formation is a distinctive light-gray to white dolomitic fossiliferous limestone. This unit has been identified by the US Geological Survey (USGS) as the Grandeur Tongue Member of the Park City Formation. This member is sometimes absent due to its contact with the Meade Peak Member of the Phosphoria Formation. It is easily detectable by its color, hardness, and fetid odor. Phosphoria Formation The Phosphoria Formation of Permian age was named from Phosphoria Gulch, Bear Lake County. The formation has been studied extensively and developed for its economically valuable phosphate reserves.

Jan 11, 1985

By R. M. Bricka, T. J. Olin

Heavy metals contamination is an environmental problem at Army installations engaged in firearms training and munitions production. At these facilities, weathering and corrosion of expended munitions and leaching from wastewater lagoons, landfills and burn pits have resulted in heavy metals contamination of the soil. The principal metals encountered in firing-range soils are lead, copper and zinc. Cadmium and other metals, such as antimony, that are often incorporated in the munitions are sometimes seen in lesser concentrations. Mercury is associated with various propellants and, while present in much smaller concentrations, is of concern because of its acute toxicity. Chromium is primarily associated with plating operations. The transport of metals into groundwater has been confirmed at some locations, which has required treatment of the soil and groundwater at these sites. Certain treatment processes for contaminated soil produce metals-laden extracts, which also require treatment before reuse or disposal. Ion exchange is generally quite effective for removing metals from aqueous streams. However, resins are expensive and must be regenerated, and activated carbon is generally less effective for most metals and also requires regeneration. Therefore, alternative effective and economic sorbents are needed. Twelve sorbents were screened in initial batch testing. These included activated carbon, bark, chitosan, crown ether, corn cob, xanthate, clay (kaolinite and montmorillonite), peat moss, seaweed and reagent-grade zeolite (aluminosilicate, Sigma Product No. Z3125). Of these, zeolite demonstrated the highest capacity for Pb, Cr and Cd. For this reason, zeolite was selected for further testing in batch, kinetic and column studies. Materials and methods Zeolite. The zeolite used in the second-phase batch and column studies was obtained from a natural deposit of clinoptilolite-rich rock located in South Dakota (Rocky Ford SDH) (Desborough, 1996). Large blocks of the material were crushed and sieved into the following three particle size ranges: 0.5 to 1.0, 1.0 to 4.0 and 2.0 to 4.7 mm. This material demonstrates high structural stability in acidic solutions (pH 2.5) (Desborough 1996) and has a measured surface area of 30 m2/g. The measured total cation-exchange capacity (TCEC) was approximately 10 meq/100 g. This is well below what has been indicated for commercially available zeolite, which has been reported to be about 180 to 220 meq/ 100 g. The TCEC test was repeated (Method 9081, SW 846) using sodium acetate. The test resulted in a TCEC of 54.5 meq/100 g. The difference between values obtained for this material and published values for zeolites may be attributable to the greater heterogeneity in the material used in this study, compared to commercially available materials, or to the effect of the relatively large particle sizes utilized. Batch studies. Seven batch studies were conducted using synthetic metal solutions and soil extracts (Table 1). Extract composition: The P-extract was prepared by sequential surfactant extraction of organics from a burnpit soil followed by acid extraction of metals. The pH of this solution is approximately 1.1. A number of metals and organic compounds were present in the soil. Analysis of the extract was restricted to Pb, Zn and Cu concentrations for this study. The FBH extract was produced from a firing-range soil that was oxidized with a 0.01 M CaO solution and then extracted with 0.1 M acetic acid. This was filtered through 0.5-µm Whatman No. 5 filter paper and stored at room temperature. The pH of the FBH extract was approximately 4.5. pH Control: Calcium carbonate (CaCO3) may be present in the zeolite horizon or bed. Calcium ion (Ca") is released from the exchange sites when in contact with solutions containing ions for which it is more selective, such as lead. This results in a rise in solution pH over time. Acid washing removes most of the carbonates, eliminating the need for a buffer. Batch studies were conducted using both acid-washed zeolite (AW) and unwashed zeolite (UW) for performance comparison. The UW zeolite was rinsed with distilled deionized (DDI) water to remove fine soil particles. Both materials were dried at 105°C (220°F) overnight, so that the dry mass could be determined. Column studies. Ten column studies were conducted. Because it was expected to have the best hydraulic properties, the largest particle

Jan 1, 1999

By P. K. Hopke, A. Hubbard, K. H. Leong, J. J. Stukel, K. Nourmohammadi

INTRODUCTION In order to understand the transport and deposition of radon daughters in mine atmospheres, it is necessary to know the variation in the attachment of the daughter atoms to particles as a function of particle size, composition, number density, relative humidity, temperature, and radon concentration, the free gaseous diffusion coefficients of the daughters, and the variation in the mass transfer of the activity, both free and attached to particles, to mine surfaces as a function of particle size distribution, surface roughness of the mine walls, and the flow conditions. If all of these parameters are known in a model system, it should be possible to understand the transport and fate of the airborne radioactivity in real mines under certain well-defined flow conditions. There have been a number of recent investigations of the attachment of radon decay products to particles 1-4, but there are still a number of unanswered questions regarding the process. However, it is clear that for most real mine atmospheres, the vast majority of the activity is attached to particles. The size distributions for the activity-bearing airborne particles have been studied 5,6, and it has been found that most of the activity resides on particles with diameters in the range of 0.05 µm to 0.3 µm with an average mass median diameter between 0.1 and 0.2 µm. The behavior of the unattached radon daughter species has also been recently studied[ 7], and many of the previous problems regarding the value of the diffusion coefficient for Po-218 have been resolved. A major problem in the understanding of the airborne transport of radioactivity in mines is the lack of detailed knowledge of mass tranfer to and fluid flow over rough walls under fully developed turbulent flow conditions. This paper will report the progress on a project that is designed to obtained that information. MATHEMATICAL MODEL DEVELOPMENT Deposition of particles on smooth surfaces in turbulent flow has been extensively studied. A comprehensive review of these results has been prepared by Sehmel 8. There has not been such a comprehensive study of particle deposition on rough walls under such flow conditions. In recent years, only a single model has been proposed to explain such deposition 9,10 and in both of these papers the flow structure in the rough walled pipe was not taken fully into account. As part of the work being conducted on this project, a more complete model was outlined in a previous report [11]. The basic theory will be reviewed to provide a context for the flow measurements to be reported. The flux of particle deposited on the walls of a pipe in a turbulent flow is derived from the one dimensional form of Fick&apos;s law as given by [N = Dpdpp/dr (1) where N is the flux of particles deposited per unit area per unit time, D is the total eddy diffusivity of the particles, p is the airborne concentration of particles, and pr is the distance measured from the center of the pipe. The rate of deposition is best expressed by a deposition velocity Vp = NIP pb (2) where P b is the mean particle concentration in the sulk flow. The shear radius, V/ut and the shear velocity, u , are used to calculate a nondimensional distance, and velocity, respectively, where v is the kinematic viscosity of the fluid. The nondimensional form of equation 1 is given by Vd = DP dpp(3) V dr+ where Pp = Pp/ Ppb(4) By integrating equation 3 from the rough wall stopping distance, S , to the center of the pipe, the deposition velocity can be obtained. In order to make this calculation, it is necessary to have accurate descriptions for the particle eddy diffusivity, stopping distance, and shear velocity in order to insure that the influence of the flow structure has been properly accounted for. The shear velocity can be determined experimentally from the shear stress evaluated at the wall, Tw, and the fluid density, ut =VT w/p = ub V f/2 (5) where ub is the mean bulk axial velocity. The wall shear stress for a given pressure drop, dP/dL, and hydraulic diameter, Dh, is]

Jan 1, 1981

By Donald W. Gentry

Introduction The mining industry is perhaps best characterized by the numerous and abnormally high risks associated with the business of mining and by its most basic assets - ore deposits, people and technology. At the most fundamental level, it is the quality and effective utilization of these basic assets that determine a mining company&apos;s ability to compete efficiently in the international market place. The gold industry has received much attention in recent years and especially in recent months, for good reason. This commodity serves as an excellent platform for the subsequent discussion of these three basic assets and their role in mining&apos;s future. Facets of the gold industry The fate of this noble metal in recent times illustrates some of the various risks associated with the mining industry and the importance of high-quality assets, whether they be ore deposits, people or technologies. The following comments pertaining to the gold industry help place proper focus on subsequent discussions. All monetary amounts given are in US dollars. Throughout 1997, falling gold prices broke record after record: first hitting three-year lows, then a 12-year low in July and finally an 18-year low at year&apos;s end. From Jan. 1 through Dec. 31, 1997, the price of gold fell by more than $2.57/g ($80/oz), or some 22%. The decline in gold-mining profitability and stock prices was even more dramatic. At the beginning of 1997, the 20 largest gold producers in North America had a market capitalization of approximately $44.5 billion. At year&apos;s end, this market cap had fallen to $26.2 billion, a reduction of 41%. The total market cap of all the world&apos;s gold companies fell from $71 billion to $46 billion, a 35% drop (Serwer, 1998). Analyses suggest that, at a spot gold price of $9.65/g ($300/oz), only one, or possibly two, North American gold-producing companies can make money when break-even or "total costs of production" are considered. While strong hedge positions mitigate this situation in the short term, clearly, this is an industry in desperate straits. For example, write-downs for North American producers in 1997 were approximately $2.5 billion. Speculative short positions in 1997 were near historical record highs and generally exceeded long positions by factors of 9:1 or 10:1. Much of this is driven by some US commercial banks, hedge fund managers and commodity speculators who can significantly move gold prices sharply over short periods of time by selling gold they do not own in the expectation they can buy it back at a lower price before they have to deliver. These signifcant short positions are likely to continue as long as central banks are willing to sell or loan gold to financial institutions that in turn make the gold available to speculators who hope to capitalize on price fluctuations. The Far East accounts for approximately 26% of the annual demand for gold. Including India, the region accounts for 43% of total demand. More than 85% of the physical demand for gold is for investment jewelry in Asia and the Middle East. This demand is extraordinarily price sensitive. The fairly recent turmoil in Asian markets and economies, combined with currency devaluations throughout the region, have made gold more expensive (30% to 50% in local currencies) for those peoples most likely to treat gold as a safe investment haven. Higher interest rates also have reduced the amount of money they have to spend on consumer goods such as jewelry. All of these recent Asian events are deflationary in nature. Deflation, if coincident with rising unemployment, could result in significant dishoarding of gold. There is one key fact to remember when analyzing

Jan 1, 1999

By Erick F. Weiland, John W. Lindemann

Introduction Minerals exploration is one step in the mining industry&apos;s task of providing raw materials to basic industries. The industry&apos;s provision of raw materials involves identifying and evaluating resources, converting them to reserves, and intelligent, economic exploitation of these reserves. The mineral process focuses on identification and evaluation. Reserves are ore bodies and ore bodies are, by definition, wasting assets. Therefore, if an adequate provision of raw materials to basic industry is to continue, these wasting assets (ore bodies) must be replaced with new or different reserves as current reserves are depleted. Minerals exploration is a geologic problem and is fundamentally deductive, flowing from the general to the specific. Past exploration methods and philosophy have amply supplied the resources to meet the demands of an industrial society. During the past decade, however, the framework where mineral resources were identified, defined, and evaluated has changed. Mineral explorationists no longer can rely solely on the successful past methods to provide the necessary resources for our complex society. Productive explorationists must effectively and efficiently use tools and procedures that will maximize exploration efforts. Past tools need not be abandoned, but should be critically reviewed and revised in light of current scientific knowledge and technical advances. Future explorationists will view their craft not as a single discipline, but as a thoughtful integration of geophysics, geochemistry, and geostatistics for solving interrelated problems. This integration of the geosciences will lead to successful mineral exploration. Not only will the productive explorationist generate new information, he will master the use of existing data for identifying and evaluating a mineral resource. The mineral exploration process consists of incentives, ideas, finance, area, staff, time, and luck. The exploration process that stems from the interaction of these elements has three stages, each bound by a major decision point. They are selection, reconnaissance, and definition. Subsequent evaluation and exploitation phases are considered more the function of mining engineers than the exploration geologist. Mineral exploration endeavors that have been productive have three attributes fundamental to success: commitment, competence, and persistence. Commitment Commitment is believing that exploring for mineral resources is worth performing. While the mining industry is the focus of this commitment, government and society must also be committed to the concept of mineral reserve identification through exploration activity. Government demonstrates its commitment by providing access to land for exploration and, if it is successful, exploitation can take place. Realistic legislation relating to taxation, land use, reclamation, and environmental constraints is indicative of government commitment to intelligent resource use. The public must come to terms with mineral resource evaluation and extraction. Without some form of commitment from the public, availability of mineral resources vital to basic industry will be largely in the control of a foreign and potentially unstable mining industry. Commitment to a mineral resource identification-evaluation-extraction system must be shared equally by government, society, and the minerals industry. The scope and direction of this commitment varies, with the industry&apos;s commitment to explore for mineral resources being the most apparent. Industry commitment is the belief at all levels of exploration (from senior corporate executives to individual field and support staff) that exploration is worth performing, that exploration goals can be met, and that their particular organization is the best and the only group that can successfully accomplish the project. Commitment can be considered at three

Jan 11, 1983

By Franklin J. Stermole

The current financial state of the mineral industry, in general, is bad. Economic prospects for improvements in the near future are uncertain. What will improve mineral investment economics so the mining industry can return to a more normal (in terms of past experience) production level? Basically, mineral commodity prices must rise. They must rise to economically justify reopening closed mines and for management to seriously consider expansion or development of existing and new mines. With the worldwide economy depressed for more than a year now (longer for most segments of the mineral industry), supply/demand relationships for mineral commodities are such that prices are depressed-except for precious metals. In investment analysis of the economic potential of existing or new investments in any industry, product price generally is one of the key parameters having great impact on the economic viability of projects. Petroleum and synfuels industry development contracted last year for the same product price reasons that have brought mineral industry development to a standstill. Much of the new mine development activity now underway or in the serious planning stages around the world involves precious metals ore body development simply because precious metal prices are high enough now or are projected to be high enough in future production years to give overall satisfactory project economics. It will take significant improvement in nonprecious metal mineral commodity prices in 1983 to develop significant new mine investment interest except in very high grade ore body special situations. Mineral Investment Decision Making Before progressing further with the discussion of mineral investment considerations for the coming year, it should be emphasized that mineral investment decision making-like all industry or individual investment decision making does not relate just to economic considerations. Investment decision making should and generally does involve three analyses: • Economic analysis • Financial analysis • Intangible analysis Economic analysis evaluates the relative economic merits of investment situations from a profitability viewpoint based on discounted cash flow analysis of projected investment revenues and costs. Financial analysis, on the other hand, refers to where and how the funds for proposed investments will be obtained. Regardless of the project&apos;s economic potential, if you can&apos;t finance it, the project will not be done. Intangible analysis considers factors affecting investments but which cannot be quantified easily in economic terms. Typical intangible factors are legal considerations, public opinion, goodwill, environmental and ecological impacts, and regulatory or political considerations, to name a few. New mine development investment decision making in the US has been impacted heavily by intangible considerations in the past decade and will probably continue to be impacted by them in 1983. There is a common tendency in literature and management practice to interchange the terms economic analysis and financial analysis. This often leads to confusion about the rationale for investment decisions. For example, in the past year a majority of companies in all types of industries cut back budgets for new projects. Often this was done not because new project economics were unsatisfactory, but because cash flow from existing operations was reduced compared to previous years due to the recession, and debt service requirements were high from existing loans so new borrowing was undesirable. For financial reasons, in other words, many projects were shelved last year. That included some precious metal mining projects and many petroleum projects. Many other projects were shelved for economic reasons (sometimes combined with financial reasons in the case of marginal economic projects). New mine development for copper, lead, zinc, molybdenum, iron ore, and synthetic fuels are a few examples. Economic Uncertainty and Financial Considerations Mineral project analysis has always involved a lot of uncertainty with respect to determining ore grades, tonnage of producible reserves, operating and capital cost projects, and mineral commodity prices estimates. The wide swings in mineral commodity prices in recent years and the almost impossible task of projecting future prices with any degree of confidence or accuracy concerns mineral project investment decision makers. In developing a new copper or silver mine, it is not today&apos;s price of copper or silver that is relevant to economic analysis of the mine, but what the price will be during the producing years. There is no way to avoid projecting the escalation (or de-escalation) effects on revenues and costs. To analyze a project in terms of today&apos;s dollar revenues and costs implicitly assumes that escalation will not change today&apos;s project costs and revenues; or that, if they do change, the project economics will be unaffected by the changes. This often is not the best or even a realistic assumption. The inherent uncertainty associated with historical mineral price swings is exacerbated in 1983 by the uncertainty of when

Jan 2, 1983

By Glenn A. Shirey, Robert D. Stoessner, S. Gopalakrishnan

Under a contract awarded by the U.S. DOE-PETC, the Pennsylvania Electric Company and New York. State Electric and Gas Corporation are conducting a test program to evaluate and optimize the performance of a two-inch air-sparged. hydrocyclone (ASH) for cleaning fine coal. The test program is being conducted at the Homer City EPRI Coal Quality Development Center, utilizing Upper Freeport coal classified to minus 0.15 mm as the process feed material. A matrix of experiments has been conducted to establish the influence of significant design and operating variables (including overflow and underflow orifices, inlet slurry pressure, airflow rate, and reagent dosage) on the production of deep cleaned coal. Performance of the ASH is being compared to conventional froth flotation, utilizing advanced techniques and selected flotation reagents. This paper focuses on work completed to-date to optimize the performance of the air-sparged hydrocyclone for cleaning fine coal. INTRODUCTION The Pennsylvania Electric Company (Penelec) and New York State Electric and Gas Corporation (NYSEG) have been evaluating advanced fine coal cleaning processes for the production of compliance grade coal (1.2 pounds S02/million Btu). Laboratory bench-scale froth flotation results were compared with results of advanced flotation processes as performed by various organizations, utilizing the same coal feed. Among the processes evaluated, the air-sparged hydrocyclone (ASH) - developed by Dr. Jan Miller at the University of Utah - was considered to offer the best potential for retrofitting into an existing coal preparation facility because of the increased capacity per unit volume. The ASH has been shown to process over 100 times the throughput of conventional froth flotation cells. In May of 1988, Penelec/NYSEG was awarded a contract from the Department of Energy&apos;s Pittsburgh Energy and Technology Center (DOE-PETC) to optimize the performance of a five cm (two inch) ASH for producing compliance grade coal from raw classified minus 0.150 mm (1.00 mesh) Upper Freeport coal, and to compare its performance with conventional froth flotation utilizing advanced techniques and selected flotation reagents. The test work is being conducted at EPRI&apos;s Coal Quality Development Center (CQDC) in Homer City, Pennsylvania, utilizing a circuit processing 0.10 to 0.25 tons of coal per hour. Other members of the Penelec/NYSEG contract team include the University of Utah, Advanced Processing Technologies, Inc., Davy Dravo, Kaiser Engineers, Ebasco Services, and Management and Technical Systems. ASH DESCRIPTION AND OPERATION The ASH-2 System is a five cm ID (actually 4.76 cm) air-sparged hydrocyclone manufactured by Advanced Processing Technologies, Inc., under license from the University of Utah, for the purpose of research, evaluation and development. A schematic drawing of the air-sparged hydrocyclone is presented in Figure 1. Basically the air-sparged hydrocyclone consists of two concentric right-vertical tubes, a conventional cyclone header at the top, and a froth pedestal at the bottom. The inner tube is a porous tube through which air is sparged radially. The outer nonporous tube simply serves as an air jacket to provide for even distribution of air through the porous inner tube. The slurry is fed tangentially through the conventional cyclone header to develop a swirl flow in the radial direction. Air is sparged through the jacketed, inner porous tube wall and is sheared into small bubbles by the swirl flow. Hydrophobic particles in the slurry collide with these bubbles and, after attachment, are transported radially into a froth phase which forms on the cyclone axis. The froth phase is stabilized and constrained by the froth pedestal, thus moving towards the vortex finder of the cyclone header and discharged as an overflow product. Hydrophilic particles generally remain centrifuged in the slurry phase and are discharged as an underflow product through the annulus created by the froth pedestal.

Jan 1, 1989

By W. A. Haley

The use of diesel engines in underground hard-rock mines dates back to the late 1940s. For the first several years, they were used only occasionally, being limited to a few metal mines that experimented with crawler¬mounted front-end loaders, tractor-trailer hauling units, a few tractors for drill-compressor mounts, and utility cleanup machines. By the mid-1950s, track loaders had become commonplace in limestone mines and uranium mines on the Colorado Plateau in the United States, as well as in Canada. Use of crawler-mounted tractors as drill and compressor mounts also increased. By the end of the 1950s, rubber-tired loaders and some haulers began to replace the track-type machines and rail-mounted cars that had been in use. About 1960, the rubber-tired machines brought about a new era of underground mining mobility and flexibility, centered on a method commonly known as "trackless mining." Ultimately, many of the underground rail-type systems for loading and hauling were replaced by the trackless mining technique. ECONOMIC CONSIDERATIONS The size and nature of mineral deposits, plus ground control techniques, historically had dictated small open¬ings to the surface from many underground mines. The small mine openings led to the development of special rubber-tired loaders and haulers designed specifically for access through the small openings. However, some mines, particularly those in massive mineral deposits, are able to excavate and maintain very large openings, and some use modified room-and-pillar systems. With the large mine openings, the use of larger, more produc¬tive equipment such as that commonly found in surface mining becomes economical. In fact, productivity gen¬erally increases at a more pronounced rate than machine size increases because many of the larger machines were designed for heavy-duty shot-rock applications in surface mines and construction sites where the handling of blasted rock is common. Table 1 can be used as a very Table 1. General Productivity Comparison for Conventional Machines In Underground Use (Shot-Rock Conditions) 2.3 m3 (3 cu yd) 4.6 m3 (6 cu yd) Loader Loader Expected Surface 230 t/h 540 t/h Production (250 stph) (600 stph) Expected Underground 90 t/h 270 t/h Production (100 stph) (300 stph) Expected Total Efficiency: Surface 40%-60% 50%75% Underground 25%.-40% 30%50% Expected Useful Machine 8000 hr 12,000 hr Life Before Replacement general comparison of the production and efficiency between small and large machines. Combining greater productivity often inherent in larger machines, with reduced downtime resulting from using fully developed machines with fast parts and service backup, some mine operators have been able to reduce material handling costs appreciably while reduc¬ing manpower requirements for operators and main¬tenance men. Large mine openings increase the amount of rock that must be handled in the development work, and they sometimes increase the dilution in stopes or rooms, de¬pending upon the dimensions of the ore zone. Providing adequate space for the unrestricted operation of large surface mining machines could, therefore, lead to more waste segregation and handling costs. It could also cause greater ore dilution that would result in a lower grade of ore being delivered to the processing plant. The tradeoffs between opposing cost factors must be reconciled and balanced to achieve the best overall cost of the crude ore, concentrates, or product. EQUIPMENT MODIFICATIONS Loaders and haulers designed for surface mining are seldom used underground in their standard con¬figurations without some modifications. If done, the modifications generally are made by the equipment dealer and/or the user, and the modifications usually include one or more of the following items: 1) The exhaust stack is lowered, and its direction is changed. Usually, it is repositioned horizontally to the rear, or it is fed into the engine fan to diffuse the exhaust gases. 2) The operator&apos;s position is lowered by either lowering the seat or changing the seat to a side mount. 3) The operator controls are adjusted to fit the new operator position. 4) Other components, such as the radiator and loader tower, are lowered. 5) Special bumper guards are mounted at the base of the radiator area. 6) An exhaust conditioner is mounted and con¬nected, using either a catalytic or a water-type condi¬tioner, or both. This usually is controlled by the safety and health regulatory authority having jurisdiction. 7) The positions of other components are rearranged

Jan 1, 1982