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This paper addresses the valuation and development timing of an undeveloped mineral project. Traditional analysis has us developing the project immediately if its net present value (NPV) is positive. Option pricing theory finds that it is better to wait until the NPV of the property is significantly greater than zero before developing. Alternatively, when evaluating the development timing decision, we must calculate NPV using a higher "timing-adjusted" discount rate, and develop the property only if its NPV using this timing-adjusted discount rate is greater than zero. This paper uses option pricing ideas to convert this development timing advice into a more concrete and user-friendly decision rule: develop the project when its "development-timing NPV" is positive, this development-timing NPV being calculated using the normal discount rate.

Jan 1, 1997

By Andy Cole, Stanley Bunk, Steve Dunn, Thom McCord

In 1994, Goldstrike initiated a research program to investigate processing options for treating what was then the small amount of carbonaceous ore identified in the reserves. The focus of the research was on developing a process which incorporated the autoclave technology already utilized at Goldstrike. Over the next two years, Barrick pursued the development of an ammonium thiosulfate leaching (ATS) process. During the period in which the ATS research was being conducted the amount of carbonaceous ore in Goldstrike's reserves increased substantially and continued growth was projected. By 1996, significant advancement was made on the development of the ATS process. The work culminated in a series of integrated pilot plant runs incorporating autoclaving, ATS leaching, resin in leach, stripping and cementation. Several questions about the process chemistry remained unanswered, preventing commercial development. Barrick was committed to producing gold from the carbonaceous ore reserves by 2000. A due diligence review of carbonaceous ore processing options was initiated during the second half of 1996. Processes considered in addition to ATS were fine grinding/autoclaving, as practiced then by Santa Fe, and whole ore roasting as practiced by Independence Mining and Newmont. The objective by year-end was to recommend the most robust and economical process for Goldstrike's carbonaceous resources. In the fall of 1996, a detailed review of roasting as a processing alternative for Goldstrike was initiated. Throughout the ATS development period, whole ore roasting was used as the benchmark. All the ATS metallurgical and financial results were compared to roasting bench top test results. It was clear this data was too imprecise for use in due diligence study, a more definitive recovery value was needed to complete the carbonaceous ore review. The primary goal of the roasting review was to conduct pilot plant roast tests to gain a more thorough understanding of Goldstrike's carbonaceous ore's response to roasting and its effects on gold recovery. Using the test facility at Hazen Research, four pilot plant campaigns were conducted to determine optimum roast conditions and further define metallurgical design parameters. Conventional two-stage fluid bed technology based on Freeport­McMoRan's roasting patent was the specific process basis for testing. The ore's response to roasting exceeded expectations. In January 1997, a preliminary economic evaluation comparing ATS and roasting was presented, and the outcome was approval to proceed with a roasting prefeasibility study. In July 1997, approval for Goldstrike's Roaster facility was received and basic engineering started immediately thereafter. Detailed engineering _began in January 1998 and plant construction commenced in October 1998,t, Goldstrike's Roaster facility is designed to treat 12,000 tpd of a refractory gold ore, which contains both pyrite and organic carbon. Circuits in the facility include primary and secondary crushing, dry grinding, roasting, gas handling, neutralization, thickening and standard CIL. Gold desorbtion and recovery is carried out at Goldstrike's existing refinery. Plant start-up of the first dry grinding and roasting train is scheduled for March 2000, with the second train coming online in May 2000.

Jan 1, 1999

By S. Srinivasan

Traditional pit optimization techniques cannot take account of the requirement to blend ore in order to produce a saleable product, as is the case for iron ore, coal, limestone and other industrial minerals. Various techniques are proposed to overcome the deficiencies, many of which have been tested. The techniques in general involve the combined application of pit optimization and blend optimization techniques.

Jan 1, 1996

By Marcus A. Wiley, Gregory Abramov

Borehole mining (BHM) is a remotely operated method of extracting rock material through boreholes by high-pressure water jets. Figure 1 illustrates a BHM tool and fluids circulation. The tool consists of at least two pipes, one for pumping down high-pressure water, the second for delivering slurry to the surface. This article reviews the BHM process. It discusses current and new applications for borehole mining and help the readers determine if BHM is applicable in their situations. Previous articles in ME about BHM explained either a particular project (ME, April 2001, pp. 33-36) or a newest patent in this area (ME, March 1991, pp. 313-318). However, neither one provided an overview on the modern BHM technology.

Jan 1, 2004

By E. K. Albert

Computer oriented simulation techniques can be effective in the design and analysis of complex mining systems. In fact, a number of computer software products are available for mine systems simulation. While providing a useful tool for the investigation of mine planning problems, the availability of graphic output was limited or non-existent. Computer graphics is a natural extension of mine simulation methods and provides a more dramatic level of understanding and interface with an engineer. With today's high cost of venture development, the need for an easy to use but complete systems model which includes the major elements of mine planning with an interactive graphics interface has never been more apparent. In this paper, the underlying philosophy of design of an interactive interface to a complete surface mining simulation model is described. The basic structures of the surface mining system and the simulation model are discussed. The methods and algorithms used to implement the various subsystems are presented. Practical considerations of the design of displays and user interaction are illustrated, especially as they apply to the application of the package by a mining engineer. A simple example is provided to demonstrate the concepts embodied in the model and to show how a simulation is built from mine data.

Jan 1, 1984

By Shamim A. Dar, Mohd Shuaib, K. F. Khan, Samsuddin Khan

Petromineralogical studies of late Paleocene–middle Eocene phosphate nodules in the Subathu Basin of Solan District, Himachal Pradesh

By George J. Saulnier

The U.S. Geological Survey has developed mathematical-modeling techniques to assess potential impacts on the hydrologic system resulting from mining of coal and oil shale in northwestern Colorado. Potential impacts of oil-shale mining on ground-water hydrology have been simulated using a quasi-three- dimensional finite-difference model. The model has been used to simulate hypothetical mine-dewatering operations at two proposed oil-shale mines. Dissolved-solids distribution and solute transport were simulated with a three- dimensional finite-difference model that was used to evaluate the effects of flooding in hypothetical abandoned mines. The potential impacts of coal and oil-shale mining on watersheds were investigated using a digital watershed model. This deterministic physical- process model predicts responses of the hydrologic system to modifications resulting from mining in basins having snow as the major source of runoff and recharge. Potential impacts of coal development on surface-water quality were investigated using a river-quality assessment model.

Jan 1, 1979

By Marcel Michaud

Over the past five years, the two-fold growth in Canada's coal industry "Figure, 1" results primarily from the coking coal market to Japan and, to a lesser degree, by the increasing use of sub-bituminous and lignite coal for power generation in the Prairie Provinces. This expansion will continue, but production of coal for domestic thermal generation of electricity will grow at a faster rate than coking coal exports "Figure, 2". Half of the 20 million tons of thermal coal used for electrical power generation in Canada during 1974 were imported by Ontario Hydro from U.S. coal companies in West Virginia and Pennsylvania. Ontario Hydro's Nanticoke station on Lake Erie which will consume 7.5 million tons of coal in 1977 when fully operative, as well as other future planned projects, could cause Ontario Hydro's coal consumption to rise from 10 million tons today to 20 to 25 million tons by 1985

Jan 1, 1975

By I. S. Parrish

As noted by McKinstry (1948), "How to deal with erratic high samples is one of the knottiest problems in ore estimation." He described a variety of approaches and methods to alleviate the problem through the averaging and weighing of assay data and by "cutting" or "clipping" of the erratic assays. Bird (1991) elaborated on ways of dealing with the nugget effect (erratics). He listed several procedures for cutting. Bird's list has been reproduced and/or added to by several authors including Vallee (1992) and Stone and Dunn (1993). Missing from each of these otherwise excellent reviews is a definition, description or guideline to recognition of an "erratic," or just where or when cutting is warranted or justified.

Jan 1, 1997

By Robert S. Mayo

The haulage of muck from mines was first illustrated by Georg Agricola in De Re Metallica in the year 1556. In many of his ancient wood cuts he showed a crude car running on wooden rails. These wheels had no flanges. There were four pins sticking down from the car to guide it along the rails. Eventually they made the wheels of cast iron with flanges on them. In England, coal was hauled from the pit mouth to the nearest river or canal in "wains", or wagons, running on the common highways. These wains carried one chaldron of coal, weighing 2500 lbs and it took six horses to haul these wains over the atrocious roads of that day. Somebody, about 1760, invented a cast iron rail. These were cast iron troughs, 4 ft long laid on wooden sleepers. With these iron rails they found that one horse could do the work of six. But this U-shaped groove trapped all the dirt and grit. Somebody had the brilliant idea of attaching a flange to the inside of the wheel and from then on the rails were of timber protected against wear by a strap of iron. Rolled rails, of wrought iron, were first used in England in 1820. I am sure that many of you people have wondered why the British and American railroads standardized

Jan 1, 1974

By J. R. Henke

Dewatering wells producing iron-rich water experience rapid declines in yield and drawdown due to the formation of ferric (Fe +) hydroxide deposits in well screen, pump intake and riser pipe. Precipitation is caused by a combination of dewatering-promoted iron oxidation and iron-oxidizing bacteria. Physical and chemical well rehabilitation techniques, as well as alternative well construction and well development techniques designed to minimize well clogging, were evaluated in this study. The addition of acid downhole feed systems to dewatering wells prone to iron encrustation can, in some cases, prolong their operational lives up to 500 percent that of unacidified wells.

Jan 1, 1989

By Peng Yu-mei, Cao Zhi-yun, Fan Qing-en

In China, an enormous amount of Au-Ag bering calcines, residues and tailings are produced each year from various sources in mining, metallurgical and chemical industries. For a long time, these materials have been either stored up in dumps or disposed of into rivers, resulting in not only waste of resources but also severe environmental pollution. It is therefore of great significance, both from economical and public welfare points of view, to recover efficiently and make full use of the metallic values from these miscellaneous materials. In this paper the physical and chemical properties of these Au-Ag bearing calcines, leached residues and tailings are described and the current status of their utilization are briefly outlined, followed by a more detailed description of some innovative processes now in practice. Lastly, the potential prospects of gold and silver recovery from these materials in China, particularly in the Hunan province, are envisaged.

Jan 1, 1998

By A. Roper

Since the Toronto conference in May 2002, the International Council on Mining and Minerals (ICMM) has made progress on the road to sustainability. Fifteen of the world?s largest mining and metal producing companies and twenty-five associations have made a long term commitment to ICMM to improve the environmental and social sustainability of their activities. Sir Robert Wilson (Rio Tinto) assumed the chairmanship of ICMM in October 2002. By December 2002, the Council had approved a Strategic Vision and an operating plan for 2003. Both have been posted on the ICMM website (www.icmm.com). ICMM?s Operating Plan sets out three priority tasks: - Providing strategic leadership to achieve improved sustainable development performance in the mining, minerals and metals industry. - Contributing to international policy discussions on cross-cutting issues of importance to the industry, in collaboration with national and commodity associations. - Promoting dialogue and partnership with other organizations to catalyze sector?wide sustainability initiatives.

Jan 1, 2003

By Paul F. Gnirk, Ralph A. Wagner, Joe L. Ratigan

This thermomechanical analysis used the finite element method to investigate the behavior of crushed salt backfill in a waste disposal room situated in a salt dome repository. The first of two objectives was to determine the transient temperature rise and degree of thermomechanical consolidation that occur in the backfill as a function of drillhole depths. The second objective involved the evaluation of closure due to salt creep of unlined emplacement drillholes and the determination of pressure on steel sleeve liners in the drillholes should liners become necessary for canister retrieval. The retrievability period was considered to extend for 25 years after waste emplacement. The canisters were assumed to contain ten-year old high level waste with a thermal output of 4.3 kW at the time of emplacement.

Jan 1, 1981

By Ross R. Bhappu

In 1989, William A. Vogely created the Mineral Economics and Management Society (MEMS). He did this after SME disbanded the Minerals Resource Management Committee, a group dedicated to technical programming of minerals economics and management issues. A few years later, SME reinstated this committee. MEMS held its fourth annual conference "Mineral resources: Managing dilemmas and opportunities," in Boulder, CO March 9-11, 1995. Some of the MEMS programs are similar to the Minerals Resource Management Committee programs. However, MEMS conferences cover more diverse issues. These include minerals policy, environmental legislation impacts on the minerals industry and minerals economics issues. The 1995 MEMS conference included six sessions and three distinguished speaker addresses. Papers topics included US and Canadian mineral policy, financial strategies for managing mining companies, Latin American mineral investment opportunities, quantitative economic modeling and the impact of environmental interest groups on the minerals sector in the United States and Canada. One session was dedicated to students who competed for $1900 in prizes for outstanding papers.

Jan 1, 1995

By Khosrow Badiozamani

Depletion of easily accessible coal reserves and stringent competition in coal marketing has led to the coal industries' need to more accurately assess alternate development scenarios and to develop well-conceived produc¬tion plans. This, in turn, has encouraged the active use of the computer during resource eval¬uation and mine planning. Morrison-Knudsen, (M-K) has developed proprietary software, known as "EAGLES", to support not only its own mine planning and development activities but also the mining industry in general. The EAGLES system provides complete geologic modeling, mine planning, production modeling, equipment modeling, and cost and financial modeling capabilities. In addition, EAGLES can be used for geotechnical studies, environmental assessments, and surface and groundwater hydrological evaluations. Another important tool used in today's mine development is Landsat (remote sensing). Landsat is especially useful in the evaluation of mining activities at remote mine locations and for megascale assessments of geologic structures and hydrologic regions. The use of scientific systems in the development of surface mines is being well integrated into today's mining operations and will be a major factor in the planning, development, and operation of mines in the future.

Jan 1, 1985

By Dennis R. Twining

Recently a mining analyst for a major bank called me to say that during his travels he had encountered an electric utility interested in a new uranium supply. Since we produce uranium as a by-product of phosphate operations rather than as a primary product, he assumed we simply sold our output in the spot market and that a new prospective purchaser would be of interest to us. This assumption was incorrect; the uranium had already been sold on a long term basis at terms more favorable than the currently depressed spot market. From the outset our approach to the marketing of uranium was based on the principle that by-product marketing is not unlike primary product marketing. This was particularly appropriate in the case of uranium, as we were planning a considerable technical and capital commitment to a new business. This illustrates: that the fundamental principle in by-product marketing is to follow a primary product strategy; that the terms "by-product" or "co-product" are creations of accountants; that they have no place in marketing decisions! Traditionally, the term "by-product" has implied that only a secondary marketing effort is required. Recent history has contradicted that view by demonstrating that by-product values can have marked impact on a mine's revenues and costs. In fact, by-product values can spell the difference between success and failure.

Jan 1, 1983

By Sean Dessureault

The mining industry has used fleet management systems (FMSs) for decades. These systems were developed long ago in large truck-and-shovel mines, where hardware sales were the core business driver for vendors. These traditional models can be overhauled in the era of the Internet of Things (IoT), Big Data, gamification and low-cost tablet technology. Relatively low-cost tablets are ubiquitous in modern life, and they are packed with communication radios and sensors like Global Positioning System (GPS) and inertial measurement units used widely for games, fitness measures and navigation. These powerful computer devices provide the same, if not more, sensing capability than traditional fleet management hardware, all at a fraction of the cost and without complicated cables or challenging supply lines. 

By Felix E. Mutschler

Alkaline rock-related precious metal deposits include: • orthomagmatic platinum group elements (PGE) ± gold (Au); • porphyry copper-silver-gold (Cu-Ag-Au, ±PGE); • epithermal Au-only, and Au-Ag-base metals; • submarine exhalative Kuroko-, Cyprus-, seamount- and Yellowjacket-type deposits; and • enigmatic deposits akin to Olympic Dam. Coeval epithermal deposits related to porphyry deposits suggest the two types represent separate immiscible fluids evolved in oxidized, CO2-rich alkaline magma chambers. Alkaline rock provinces develop above mantle hot-spots, but crustal structures control the final distribution of magmas and ore fluids. Prospecting guides for alkaline rock-related precious metal deposits include the presence of evolved alkaline rocks, pervasive K-metasomatic, redox and carbonatic alteration and low level Au (±Te, etc.) anomalies. Although alkaline igneous rocks crop out in less than 1 % of the area of the North American Cordillera and craton, alkaline rock-related ore deposits have produced nearly 13% of the total United States and Canadian lode gold production. Large (31-t or 1 million-oz) deposits are common (Fig. 1), and additional deposits and reserves are being discovered. New genetic models are evolving, making alkaline rock-related precious metal prospects attractive exploration targets.

Jan 1, 1991

By Douglas Ball

An underground storage field is a gas field where man, not nature, has put all or most of the gas. All but one of those in use today are in the pore spaces or "porosity" of sedimentary rocks, the most common being sandstone. The one exception, near Newcastle, England, is a gas storage in a cavern dissolved from rock salt. The tens of millions of barrels of LPG (liguified petroleum gas) now stored in salt caverns mined in shale is liquid storage, not gas storage, and in this paper I recognize the presence of these installations but do not include them in the gas storage category, Since, with the English exception, gas storages are gas fields, they can all be sorted into the categories used to describe gas fields, 95% of them once gas fields anyway, but some of the remaining 5% are the ones having the greatest effects on underground waters.

Jan 1, 1960