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By M. A. Cocquerel

INTRODUCTION Davy McKee have developed and patented a combined mixer settler (CMS) which has undergone extensive trials and has now been installed in two commercial uranium plants in South Africa. Substantial capital and operating cost savings can be realized over conventional mixer settler in uranium extraction, especially from dilute feedstocks containing approximately 200 ppm U308. Pilot plant work has also been undertaken on other metal extraction systems and the results are very encouraging in most areas of interest. CONVENTIONAL MIXER SETTLERS The conventional plant in use at many uranium recovery facilities consists typically of a mixer box in which the aqueous and organic phases are contacted and a settler in which the two phases separate. The mixer box must allow sufficient residence time for the mass transfer kinetics to be satisfied for the particular species involved. The settlers are usually rectangular and take the form of shallow tanks of large cross sectional area.

Jan 1, 1984

By Tracy E. Barnes

The process of computerized reserve estimation consists of assuming a model of the spatial continuity of a deposit and then, working within the assumed model, estimating the grade and tonnage of the deposit. The basis for geostatistical analysis is a statistical definition of this continuity or the variogram. The true variogram is essentially impossible to define. So an experimental variogram is defined from the sample data and kriging proceeds assuming that this experimental variogram is a good approximation of the true variogram. Therefore the closer the experimental variogram is to the true variogram the better the estimate will be. Realizing that the variogram is nothing more than the definition of the spatial continuity of the deposit, taking the known geologic continuity of the deposit into account will give a superior variogram. The use of known geology is a widely recognized necessity for good structural analysis of a deposit, but is rarely fully incorporated into the structural analysis.

Jan 1, 1982

By V. L. Jr. Davis, F. L. Stanley, P. J. Bethell

Fwe 3 m (10 ft) diameter Microcel™ flotation columns were installed at Clinchfield Coal Company's Middle Fork preparation facility in order to reduce product ash and increase recovery and plant capacity. The Middle Fork facility is utilized for the recovery of fine coal from a feed stream that consists primarily of 1 .5 mm x 0 material. The columns replaced conventional flotation cells for the treatment of the minus 150 pm fraction while spirals are used to upgrade the plus 150 pm material in the plant feed. The addition of the column flotation circuit resulted in an increase in plant capacity in excess of 20 percent while reducing the flotation product ash content by approximately 7 percentage points. Flotation circuit combustible recovery was increased by 17 percentage points. This paper discusses circuit design, commissioning, and sparging system design. Circuit instrumentation, level control, reagent system control, performance comparisons with conventional flotation, and general operating procedures are also discussed.

Jan 1, 1995

By Jack W. Murphy, Kent J. McGrew, Rudolph H. Jacobson

Introduction Maximization of profit consistent with environmental protection is the principal goal of new applications development for any conventional or in-situ mining technique. Efficient evaluation of all the parameters that contribute to mining costs and production hinges on proper design and evaluation of testing programs and data. The program discussed herein utilizes several field and laboratory procedures to estimate ore deposit characteristics and optimize lixiviant compositions. The ore characteristics and lixiviant compositions are then used in a long path leaching test (stream tube test). The stream tube test data are analyzed by mathematical models with computer assistance to predict such well-field rate parameters as target metal production, lixiviant consumption, and restoration. When these predicted rates are combined with market values for target metals, capital expenditures, prices of lixiviant chemicals, and other economic variables such as labor costs, power rates, licensing fees, and others, an assessment of the relative feasibility of various proposed mining plans is possible. The flowsheet in Figure 1 illustrates this process.

Jan 1, 1984

By T. Faulkner, S. A. Richards

"The Scale-Distance formula is one of the primary means of determining the maximum amount of explosives that can be safely detonated at one time by a single delay. This paper describes a method of applying the Scale-Distance formula to the entire mining area using gridded surfaces. Using this technique, the operator can better determine the economic impact of nearby structures on the mine plan. INTRODUCTION As the surface mining of coal and stone encroaches near populated areas, precautions must be taken to minimize blast vibration damage to protected structures. The common method employed to minimize vibration damage is not to reduce the total amount of explosive in the hole (which would negatively affect fragmentation), but rather to introduce delays to reduce the amount of explosive detonated at any point in time. The Scale-Distance formula, an industry-accepted standard, may be used to calculate the maximum weight of explosive that can be detonated at one time without damaging the structure. This information may then be used to determine the number of delays required for each hole. Detonators make up a large part of the cost of blasting. At roughly $15 per detonator an additional detonator in the hole can be significant. It is normal to set off hundreds of holes at in one shot. An additional detonator in each hole can cost additional thousands of dollars per shot. The number of detonators is also a function of the depth of the holes and the hole spacing. Being able to accurately forecast the economic impact of blasting near structures improves a company’s ability to make informed decisions on how to approach property owners. Operators basically have three options when dealing with property owners: 1. Buy the property and blast without restriction 2. Negotiate with property owner for a waiver to allow unrestricted blasting 3. Comply with the legal blasting restrictions This paper proposes a method for the engineer to forecast for all points in the proposed mining area the impact of nearby structures upon the blast design. Being able to create a contour map and ultimately estimate the number of delays required for the entire forecasted mining area, the engineer can create accurate economic forecasts of the cost of blasting. The objective is to reduce the level of uncertainty in the forecast of the blast component portion of the forecast."

Jan 1, 2016

By Wei Zhang, Jinhong Zhang

An atomic force microscopy (AFM) image analysis has been applied to study in situ the adsorption of hydroxamic acid collector, i.e., octanohydroxamic acid (OHA), on malachite in aqueous solutions. AFM images show that hydroxamic acid collector adsorbs strongly on malachite mainly in the form of insoluble copper hydroxamate complex. Increasing the collectors’ concentration and the adsorption time both increase the adsorption of hydroxamic collectors on malachite. Results from the attenuated total reflectance–Fourier transform infrared spectrometry (ATR-FTIR) also show that the collector adsorbs strongly onto malachite, with strong absorbance spectra being detected, and the ATR-FTIR results confirm those as obtained by AFM. This specific adsorption mechanism explains that a high selectivity with a moderate collectivity will be achieved with a hydroxamic acid collector for the flotation of malachite. The findings of present study also show that AFM image analysis is a powerful tool for the study of the hydroxamic acid collectors’ adsorption on malachite surface and it can help with the development of novel collectors for malachite flotation.

Feb 1, 2025

By Bruce L. Bryson

In the past decade a principal growth area in refractory technology has been the development and use of extra high alumina refractories. The refractories user is asking for, and is prepared to pay for, higher purity, more dense materials with longer life, less maintenance, and better dimensional tolerance to meet the exacting demand of high output processes. High alumina and bauxite refractories are being used more and more to keep pace with the demand for guaranteed performance. The steel industry, for example, is starting to place great reliance on these products. A unique material now available with all the requirements for extreme purity and density is tabular alumina, already proving itself in many refractory applications.

Jan 1, 1973

By Jerry F. Fountain

Variations in ore grade, mineralogy, and copper pricing structures over the life of the Inspiration mine have mandated many modifications to the treatment methods to maximize process economics. In the 1970's, copper prices generally declined, while inflation, wages, and interest rates increased. A metallurgical treatment route had to be developed for this continuing economic climate which would be capable of minimizing labor, energy, and capital cost requirements. After many years of development, the patented "Ferric Cure" process was introduced to satisfy these requirements. This dump leach process for treatment of mixed oxide/sulfide ore includes: strict mineralogical control of ore placed for leaching, controlled leach pad construction, solution saturation and curing of the pads with higher acid concentrations, and, finally, rinsing of the cured pads for removal of dissolved copper. Leach solutions, high in sulfuric acid during the cure application and low in sulfuric acid during the rinse, contain sufficient ferric iron to enhance the leaching of chalcocitic sulfide minerals.

Jan 1, 1983

By Thomas Novak, Sampurna Arya

Controlling dust generation and keeping it below permissible limits to meet federal dust standards at the working face of a room-and-pillar coal mine is a challenge for a mine operator. With the recent changes in federal dust regulations requiring lower worker exposure, maintaining compliance has become increasingly difficult. The current most effective practice of dust control at a continuous miner face in an underground mine is the use of a flooded-bed scrubber. A study carried out by the U.S National Institute for Occupational Safety and Health (NIOSH) indicated that a flooded-bed scrubber could achieve cleaning efficiencies between 58 and 90 percent. But the operation of such a system is maintenance intensive. The flooded-bed scrubber screen becomes clogged with dust particles and requires frequent cleaning to maintain performance. However, the dust control issue is not solely a mining-industry problem. Other industries face similar issues. The University of Kentucky collaborated with Toyota Motor Manufacturing on the development of a novel wet scrubber, called the vortecone scrubber, for capturing over-sprayed paint particles in automotive paint booths. The vortecone scrubber achieved a cleaning efficiency of 99 percent and required minimal maintenance. This study aims to assess the ability of this vortecone scrubber to capture respirable dust in an underground coal mine. The paper presents the results of computational fluid dynamics (CFD) modeling of this vortecone scrubber. It discusses the effects of air quantity and dust particle size on the performance of the scrubber. 

By C. G. Hunkin

In situ, or in-place leaching is concerned with the extraction of metals from natural mineral disseminations without removal from their geologic location which, in many cases, amounts to the reversal of the deposition process accompanied by a presumed increase in velocity of the processes, if the project is to be profitable. Solution mining processes involve removal of minerals such as sulfur, common salt, and potash, generally leaving cavernous voids, in contrast to in situ leaching which term is applied to the selective dissolution of a mineral from its gangue without sensible disturbance of the formation. Where such a process can be operated, the advantages are manifold and have been so recognized by miners from the earliest days of mining. Recent technological developments have encouraged a reassessment of the status of in situ leaching, and it now appears possible to extend the application of the method from a few isolated special situations to many uranium and copper deposits. Anaconda's interest in the techniques stems from long experience with vat and heap leaching, 'dump leaching, and natural leach activities associated with several established mines. Increasing activity through-out the industry has been noted, particularly in leaching low grade pillars and the peripheral zones of operating mines, often by the introduction of leach solutions via boreholes drilled from surface. Reactivation of dormant mines] using similar techniques has been successful. Over the long term, environmental improvement activity will lead to excess sulfuric acid production, even to a disposal problem. The cost of leach solutions and reagents must be reexamined in this light. The mineral industry now classifies as uneconomic deposits of readily soluole minerals whose potential value, on a per acre basis, may De several times that of many currently profitable oil field reser-

Jan 1, 1971

By R. A. Burns

The production of kaolin and calcium carbonate in North America exceeds 13 million tons sold into higher value market segments. With a few exceptions, the markets supplied exhibit mature growth rates. In some market sectors, technology changes have and continue to occur shifting pigment-type consumption and growth. New sources of supply will impact current businesses. New product and process developments for kaolin and calcium carbonates are continuing. Each of these issues is examined in developing a view of the future for kaolin and calcium carbonate in North America.

Jan 1, 1997

By Clement K. Chase, Manuel R. Lastra

Introduction The choice of using a dump or heap leaching process or a fine grinding-agitation leaching process is based on the grade and tonnage of the ore body. Low grade ore and small tonnages are best treated by a low-cost method, such as dump or heap leaching. Permeability, however, is the critical factor in a successful leaching operation, regardless of tonnage or grade. Without permeability in the leach bed, no percolation, no dissolution, no extraction, and no success are possible. Solution delivery to the ore is also essential. Solute-to-mineral contact is a requisite. The solute must be effectively strong and not be depleted in active dissolvers, such as acid, ferric iron, cyanide, and oxygen. It must also be moving across the mineral to be dissolved. No pockets of stagnant solution can be allowed. A third factor is recovery of the now-dissolved metal in the pregnant liquor. All such liquor should be gathered at a reasonable metal concentration to make further pumping and processing worthwhile. Control and recovery of pregnant solutions are probably the most ignored factors of solution mining. This stage in recovery is historically where many operations either fail or become viable. Permeability A permeable heap is normally achieved by taking into account heap building/construction and agglomeration/pelletizing. Even though heap building is critical for good permeability, it will not be discussed here. It has been described in detail by others. Instead, this analysis will concentrate on agglomeration and pelletizing. Differences between agglomeration and pelletizing are emphasized. Agglomeration is referred to when small particles are being attached to larger particles -the ore presents a complete size distribution. On the other hand, pelletizing is a process where all particles are fine (less than 850)µm or 20 mesh), as with mill tailings. The difference is important from two points of view: • Mechanical devices used to achieve the desired attaching action; and • Binder dosages. Mechanical Devices Due to the absence of large particles that fines can become attached to, pelletizing should be done in a centrifugal-action-based device, such as an inclined rotating plate, a rotary drum, or a series of belt-transfer points. In agglomeration, large particles play a part as a natural nucleus for the attaching action of fines. Hence, a tumbling action as strong as for pelletizing is not required. Common methods to accomplish agglomeration include: • Cascade belt system with either all belts moving forward or some of them moving forward and at least one moving backward; • Combination of belt plus inclined vibrating chute; • Large concrete mixer drum; and • Belt discharging directly onto stockpiled ore. The proper agglomeration system will depend basically on the size distribution of the ore and the amount and type of clays present. In all of the agglomerating systems described, the tumbling action takes place at the transfer points either from belt to belt, or from belt to inclined chute ore belt to ore pile. Usually, two or three mixing bars at each transfer point are also included to help the mixing action. Plows to move the ore around on a moving belt are also used.

Jan 11, 1984

By V. Roze, M. E. A. Robertson, C. J. Sharland

Current Techniques - Fire Assay Fire assay of gold has been used for several thousand years and is a well known technique to the traditional assayer. Very few assayers wish to use the method but to date there has been no viable alternative. Fire assay is expensive in labour, time, capital and running costs. Workers can be exposed to hazards and uncomfortable working conditions such as lead fumes, heat stress, dust and eye strain. The high capital cost of putting up the building and equipping it, together with running costs which increase annually at a prohibitive rate makes the technique less attractive each year. The main requirement in most assay laboratories is to maximise throughput economically. This is difficult with fire assay as it is impossible to automate. Each sample for analysis is handled by at least 12 people and each person represents a potential source of error. Record keeping and report generation has to be done manually which is both slow and prone to errors. Replacement of staff requires a considerable training period and with a large turnover of personnel this presents yet another problem. The presence of silver and dross in the gold sample affects the accuracy at low gold values. X-ray fluorescent analysis Two methods of XRF instrumentation have been used with limited success. The first type is a laboratory instrument employing L X-rays. Small samples of a few grams, which are not representative,

Jan 1, 1988

By Ira Sohn

This article revisits global projections made in 1981of eight metallic and fertilizer minerals for the year 2000. The objectives here are to quantify the differences between the projected and observed levels of consumption for the year 2000 for eight of the 26 nonfuel minerals covered in the earlier study. An attempt is then made to attribute these (often) large differences to the major determinants of minerals demand — income, technological, regulatory and other policy changes, and changes in the recycling rates of the metallic minerals. The eight minerals covered are aluminum, copper, iron, mercury, nickel, phosphate rock, potash and tin. This summary article presents the actual population, gross domestic product (GDP) and per capita GDP changes from 1970 to 2000, compared with the projected rates for these important determinants of mineral use, along with the observed growth rates of minerals consumption for the eight nonfuel minerals included in this study. When the projections are compared with the observed global consumption levels for the year 2000, the differences range from +43 percent for nickel to +229 percent for potash.

Jan 1, 2005

The two candidates in the upcoming presidential election in the United States each say that they have their own solution to the nation?s energy problems - solutions that will increase the amount of energy available, lessen the nation?s dependence on foreign sources and reduce the amount of pollution released to the atmosphere. Democratic nominee Sen. Barack Obama and Republican candidate Sen. John McCain both advocate research funding for coal-to-liquids and clean coal technologies. McCain also supports increased oil and gas drilling offshore. And Obama has even made some noises in that direction, although his plan leans heavily on the increased use of renewable energy sources. The energy debate is not new to this election. Congress and whichever party is in the White House has for years been trying to craft a comprehensive energy policy. One difference in this latest debate is that the increased use of nuclear energy has gained more attention. Current President George W. Bush has said he favors the increased use of nuclear power as part of the nation?s energy package. And McCain said he supports the building of more nuclear power plants. Obama has not said much about that. The American public is also showing signs of changing its stance on nuclear energy. To be sure, images of Three Mile Island and Chernobyl are still alive in some minds. However, the American public has said it wants cheaper energy and they want it produced more cleanly. With nuclear, the nation can have both. In the United States, nuclear accounts for slightly less than 20 percent of the electrical power used (see interview with Gary Steele of Energy Fuels on page 27). Globally, that figure is about 15 percent. And there are several nations that derive better than half of their power from nuclear sources. Add to that the world?s increasing need for more energy and the future of nuclear is bright.

Jan 1, 2008

By Carl-Henrik Knudsen, Rolf Tore Arnesen, Eigil R. Iversen

Recovery of iron and copper from acid mine drainage was studied in pilot scale at a continuous treatment plant at the mine site of the King's mine in Roeros, Norway. The average load on the plant was 1 m3/h. The process tested in this project is a three-step process consisting of: 1) Fe(OH)3 precipitation at pH 3.5, dewatering of iron sludge and transport to ferric chloride plant; 2) after filtration precipitation of residual metals at pH 9, concentration of metal sludge by flotation; 3) extraction of metals from the sludge with sulphuric acid followed by recovery of copper by electrolysis. The copper could be used for local production of different crafts, but this condition needs a further evaluation. The process economy at a full scale plant is evaluated.

Jan 1, 2000

By Richard E. Gertsch

Mechanical mining holds great promise for the mining industry. Realizing this promise depends on developing the tools needed to mechanize a mining operation with a reasonable expectation of success. Mechanical mining entered the 1990s with new machines, new operating methods and new ideas for the future. Mechanical mining can provide higher production, increase safety, reduce roof support requirements, create smoother openings for better ventilation, substitute continuous production for cyclical drill-and-blast procedures, and create opportunities for automatic and teleoperated control. The full promise of this important technology still lies ahead. Obstacles include: • Long-term production prediction: Mechanical systems have a high capital cost. Although recouped by lower operating costs, the tradeoffs are not always clear to mine operators. • Cutting tools for hard rock: Rock of more than 103.4 MPa (15,000 psi) cannot be cut by flexible mining machines. • Machine designs: Many machines cannot convert the required power into rock cutting capability. • Engineering: Better use of the machines in the mine is needed.

Jan 1, 1994

By A. Ballester, F. Gonzalez, M. L. Blázquez

Pyrometallurgical process are usually used to recover valuable metals from metal sulphide concentrates. However, their use is diminishing as the cost of energy rises and pollution controls become strictes. An alternative method of treatment sulphides could be bacterial leaching due its simplicity and negligible contamination (1-2). This process is presently used commercially to re cover metals such as Cu and U from low grade ore concentrates. In spite of numerous researchs during recent years (3-5) there exists very little kinetic data concerning the speed of bioleaching process. The kinetic analysis of bacterial activity is related with the metabolism and growth of microox ganisms . This fundamental information permits ma- king the best utilization of bacterial oxidation and to suggest techniques which might increase the production of the products desired. However, bio- kinetic models are especially complicated due to the existence of many metabolic routes and parallel reactions which are important for the life of the bacteria. Microbiological oxidation of a mineral substrate is influenced by its own inicial concentration: This influence can be determined by means of a kinetic study. In a medium with sufficient concentration of nutrients (nitrogen, phosphorous and potassium) and an adequate supply of 0, and CO2, as the only & L source of carbon for the biochemical synthesis, the substrate concentration would remain the only limitation in the rate of leaching. In this case the Michaelis-Menten model could be applied (6). The model is based on an association of the enzyme (El with the substrate (S) with consequent decomposition of the latter into enzyme and products [ ] The rate of dissolution is defined by the equation : [ ] Were V is the rate of metal extraction (mg 1-1 1 h-1 ) ; S is the pulp density Mn is the maximum rate for metal extraction (mg 1-1 h-1) and K is the constant of Michaelis (concentration of substrate that yields Vm/2). This method is applicable only when the rate of bacterial growth is similar to the rate of metal extraction. It would therefore be sufficient to control the concentration of metal in the medium over the period of time. In the present work a systematic study of the kinetics of ZnS and CuFeS bioleaching in sphalerite and complex ore concengrates was carried out. The rate of dissolution of the Zn and Cu as function of the pulp density and temperature was determined. However, most oxidations of sulphide dissolution take place with a very slow kinetic; but, this can be accelerated considerably by the addition to the solution of suitable catalytic ions, as was Suggested many years ago by Bjorling (7). Such ions can exercise an important influence on the rate of the oxidation-reduction reactions, both homogenous and heterogenous, which take place during the leaching of sulphides; they also affect the nature of the reaction products. The action of catalytic ions has been fully developed in aqueous systems, but in the absence of bacteria (8 - 11) although the actual machanisms is not totally known. The mechanisms proposed as hypotheses in the literature (8) indicate that, in the case of ZnS, the catalyst ion act through an electrochemical mechanism according to the reactions: [ ]

Jan 1, 1989

By J. Burrows

The Chamber of Mines of South Africa is an association of major mining corporations, gold mines, coal mines, diamond mines and other metalliferous mines. It looks after those interests of its members which can best be handled on a co-operative basis. The Chamber's activities include the engagement of labour; the negotiations of all labour matters, including minimum wage rates, with recognised trade unions and associations; the carrying out of advanced technological research; representing the industry in dealings with the government and the administration of miners' training colleges and rescue training stations. Subsidiary companies of the Chamber handle matters such as the refining of gold and other metals; the processing and marketing of uranium and the marketing of Krugerrands. The thirty-two gold mines members of the Chamber of Mines of South Africa produce approximately 694 tons of gold per annum. To achieve this they employ 430000 persons and break about 8400 kilotons of rock per month. The working revenue is approximately 4 225 million US dollars per annum and the annual working profit is approximately 2 050 million US dollars. The electric power consumed by the gold mining industry is 1650 MW, about 20% of the total power produced in South Africa, and the annual costs of this power is approximately 200 million US dollars per annum. It is estimated that about 25% of this power is used for ventilation and refrigeration appliances. Thus the annual power costs for ventilation and refrigeration is approximately 50 million US dollars. The gold bearing reef is a narrow tabular deposit situated at varying depths throughout the gold fields. The weighted mean rock breaking depths and, virgin rock temperatures range from 1 700 - 9 000 ft (520 - 2 740 m) and 68 - 113°F (20 - 45°C) respectively. The maximum virgin rock temperature at which mining currently takes place is 130°F (54.5 C). Obviously at such depths and temperatures and with such a large labour force the provision of an acceptable environment is critical and to achieve this 59 000 000 cfm (28 000 m3/s) of air is downcasted during the main shift and 122500 tons (430 MW) of refrigeration are provided. Legislation in South Africa requires that on metalliferous mines when more than 1000 persons are employed underground during any one shift the manager shall appoint one or more ventilation officers. The legal responsibilities of the ventilation officers are concerned mainly with the measurement and control of dust. In practice, this is not the main part of their work and ventilation personnel perform many other duties such as measuring and controlling the distribution of air, checking the performance of fans and cooling plants, planning air and refrigeration requirements and, more recently, measuring and controlling noise and illumination levels. Ventilation personnel are specialists who provide management with advice on all matters relating to the mine environment. At the present time there are 506 persons engaged as ventilation personnel in gold mines and a further 1744 persons are employed in gold mine ventilation departments in a non-technical capacity, for example as construction workers, filter cleaners, fire patrollers, etc.

Jan 1, 1980

By G. Le Bel

Discussion by G. Le Bel The paper proposes three methods to determine optimum lifetime of a mining project 1. The conclusion is that the three methods arrive at the same optimum production rate (by coincidence). It is also stated that: "The stochastic and option pricing models, in addition to providing a more realistic optimum mine life than the traditional NPV (net present value) calculation, showed that the example project has the potential for substantially higher return. By explicitly considering a project's potential risks, the stochastic or option pricing techniques can more accurately describe its probable investment performance." This discussion is intended to demonstrate that: •It is no coincidence that the three methods arrive at the same optimum production rate. • The stochastic and option pricing models do not provide a more realistic optimum mine life than the traditional NPV calculation. •The potential for a substantially higher return is misrepresented. First, a review of investment decision theory in mining is needed. Net present value is the preferred performance measure because of the flexibility offered when comparing various alternatives. However, it presents the following disadvantages: • The discount rate selection is not straightforward. • The NPV obtained represents a deterministic characterization of the variables included in the cash flow calculations, i.e. a single-point estimate. Discount rate selection The opportunity cost of capital represents the rate of return that would be obtained if the capital was instead invested in other opportunities considered to exist. Such opportunities must be bypassed if the available capital is invested in the project studied 2. If these other opportunities carry risk similar to the project under analysis (for example, if they are other mining projects), there is no need to add incremental [ ] risk factors. On the other hand, if these opportunities are represented by the acquisition of government bonds yielding 7%, a risk premium factor must be included. The types of risks associated with a mining venture are shown in Table 1. Together they represent the "business risk" of being a mining company. The individual project risk is important to investors if it differs substantially from the business risk of the company and that of the other investments in mining ventures that we must pass up to invest in this particular project. A risk premium or discount would then be required. This can be illustrated by the following example. Consider that a company has two investment alternatives: one is the Cavender hypothetical project located in Nevada, and the other is the same project located in a civil war zone of central Europe. The second project requires a risk premium factor on the discount rate. Conversely, a project showing highly uncertain returns that are negatively correlated with the returns of the firm's other assets may decrease the company's corporate risk. Deterministic character of NPV calculation The cash flows used in NPV calculations are obtained from a set of variables. These variables are estimated using one parameter obtained from the engineering studies. Each parameter is thus a single value that is often termed a "realistic" or "best estimate" as opposed to "optimistic" or "pessimistic." However, considering that each variable can assume a range of values between the

Jan 1, 1994