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By Dwane K. Johnson

INTRODUCTION The small mining company faces the dilemma of how to finance the development of its properties because it doesn't have the financial resources to pay for the development costs from its own funds and doesn'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'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'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 L. Ozdemir, M. Cigla

This paper presents and discusses some of the computer models developed and currently used at the Earth Mechanics Institute (EMI) of the Colorado School of Mines (CSM). These include the performance models for full and partial face machines. Examples of input and output of these models will be illustrated for typical mining operations by using machines such as Tunnel Boring Machines (TBM), Continuous Miners (CM), Marietta borer miners and longwall drum shearers. The general approach to modeling and the available models are discussed and some examples of these models are presented. The comparison between the estimated and achieved performance, as well as the degree of improvement in the performance due to balancing and modification in cutterhead design are also discussed.

Jan 1, 2000

By Frederick B. Brien

For many years tin mining in Bolivia has been very important to the economy of the country. In recent years the tin content of the ore reserves has been steadily declining. An improvement in concentration efficiency is highly desirable in order to increase productivity from the present-low-grade mine ores and to allow retreatment of the many millions of tons of tailings from past operations, some of which equal the present ores in tin content. A number of investigators have been or at present are working on various phases or approaches to the problem. Gravity concentration is used in Bolivia today as it has been in the past to recover tin minerals from the mine ores. An objective of the work reported in this paper was to examine the possibility of treating present low-grade ores and sink-float tailings products, at a relatively coarse grind, in order to produce a higher grade feed material to the present gravity concentration plants. The possibility of using heavy liquids in cyclones to treat large tonnages with a minimum of outlay presented itself and is of particular interest since appropriate heavy liquids are available and with physical properties which lend themselves to simple recovery methods. Tests were carried out using a closed circuit laboratory cyclone assembly. It was desirable to determine the value of using the SG50 concept and Tromp curves for analyzing the cyclone concentration test results. The effects of entrained water on the behavior of ore particles in the cyclone were examined.

Jan 1, 1964

By J. P. McDonald

Exposure to particulates containing metals and metal fumes (PCMMF) is a potential concern in ore refining and smelting. Some metals of primary interest are arsenic, cadmium, copper and lead, which have been linked to various adverse health effects. The current National Institute for Occupational Safety and Health (NIOSH) sampling method for metals in particulates requires the use of a filter, precision airflow pump and laboratory analysis. A major concern with this method is the one-to-two weeks? wait before laboratory results are available for use in determining if additional controls are needed to assure adequate exposure protection for workers. Particulates containing these metals were sampled during sixteen sampling events at a copper smelter using the traditional NIOSH methods. Monitoring of particulates was simultaneously conducted using a TSI 8520 Dust-Trak real-time aerosol monitor with a 10-µm-cutpoint sampling inlet. NIOSH analytical methods related to particulates and metals (methods 0500, 0600 and 7300) were used to determine particulate mass and individual mass contributions of metals on sample filters. Linear regressions with y-intercepts forced to zero were developed to determine the relationship between the PM10 measurements recorded by the DustTrak and laboratory-reported total particulate mass, PM10 and respirable arsenic, cadmium, copper and lead concentrations. These linear regressions yielded correction factors that can be applied to DustTrak readings to obtain total particulate mass, PM10 and respirable concentration estimates for each of the four metals. The R2 (coefficient of determination) values from the linear regressions ranged from 0.65 for total lead to 0.91 for total copper. These results suggest that the DustTrak may produce real-time data useful in providing estimates for airborne concentrations of arsenic, cadmium, copper and lead in copper smelter particulates.

Jan 1, 2011

By MARK J. VANARELLI

Estimating groundwater inflows in rock deep tunnels is critical to the safety of personnel constructing the tunnel and the cost of construction. This paper presents two case studies for estimating steady-state groundwater inflows into deep rock tunnels. The case studies included the Chattahoochee and Nancy Creek tunnels. In this paper, statistical methods were applied to packer test data obtained from exploratory borings during geotechnical site investigations. A semi-empirical procedure was utilized for estimating groundwater inflows into these deep rock tunnels. It is the most widely used method/procedure in the tunnel industry. The Chattahoochee and Nancy Creek tunnels are deep rock tunnels which exhibit radial flow conditions. For the radial flow condition, a statistical analysis presented in this paper indicates that the semi-empirical procedure works well; however, variations in the procedure and/or an insufficient amount of testing could lead to underestimations of the inflow quantities. Packer test data plotted in histograms were observed in all cases to be log-normally distributed for the radial flow condition. Modeling using Monte Carlo simulations was observed to be an effective tool for removing irregularities in the distribution of the data and incorporating high-end permeability data to derive reasonable groundwater inflow estimates. This paper is based on the PhD thesis entitled “Improvements to the Current State of the Practice in Steady-State, Groundwater Inflow Estimates into Rock Tunnels based on the Application of Statistical Analysis Methods of Packer Test Data obtained from Exploratory Borings During Geotechnical Site Investigations.”

Oct 9, 2020

By K. S. Lackner, T. M. Yegulalp

We present a review of research and development for coal based clean energy systems aiming for zero emissions to the atmosphere. These systems can utilize all kinds of coal or other solid carbon sources such as tar sands as well as liquid hydrocarbons. The chemical energy of carbon is transferred to hydrogen and used in power generation, in fuel cells, or hydrogen combusting turbines. The waste products of these future power-generating systems are ash, sulfur compounds and CO2. We also summarize current and developing technologies for processing of CO2to produce mineral carbonates for permanent disposal, and associated byproducts.

Jan 1, 2003

Steady increases in longwall production have required operators to apply greater quantities of ventilating air in an effort to control and dilute respirable dust. Significant increases in shearer speeds necessitate that longwall supports also be advanced at a faster rate. Both of these factors may contribute to overall respirable dust levels on the longwall face because as supports are lowered and advanced, broken material falling from the top of the canopy is entrained directly into the air stream. To address this issue, the Pittsburgh Research Laboratory collected respirable dust samples from four longwall faces to characterize shield-generated dust. This paper investigates the influence of air velocity and shield advance rates on respirable dust levels. Also discussed are engineering controls currently used to reduce shield dust and alternative controls being investigated by the National Institute for Occupational Safety and Health (NIOSH).

Jan 4, 2010

By Nathaniel Arbiter

Flotation’s earliest patent was issued in 1860. However, the process was first applied commercially in Australia until 1904, and in Montana in 1911. Major advances followed both in reagent treatment and in cell design, with resulting process improvements. Mechanical cells have seen the widest use and with the major increases in plant capacities (Fig. 1) their volumes have also increased (Fig. 2). In 1991, the principal use for the process was to produce copper concentrates for smelting. It was applied to 243 Mt (268 million st) of copper ore. The total of all ores floated that year was 426 Mt (470million st). In 1997, US mines produced 257 Mt (284 million st) of copper ores for flotation, yielding1.75 Mt (1.94 million st) of copper.

Jan 1, 2000

By Paul Hewitt, Tim Smirnoff

Design and construction of the Epping to Chatswood Rail Line tunnels in Sydney, Australia required an innovative approach to define hydrogeological properties of the Sydney Hawkesbury Sandstone and provided an insight into the hydraulic behaviour of fractured sedimentary rocks. To meet restrictive water inflow and infiltration criteria both the pre-treatment of zones of fractured or highly jointed rock, and waterproofing using an interior spray on membrane for the finished drained tunnels and stations was required. Methods typically used to address the interaction of groundwater and tunnels in the Sydney Basin are demonstrated by case histories from major design-build tunnel projects.

Jan 1, 2005

By Kai Wang, Chao Xu, Qiang Fu, Tong Yang, Chunyu Zhao, Wei Zhao

The stress of a coal seam is an important factor that affects the permeability of the coal seam and then affects the coalbed methane (CBM) drainage. In China, adjacent coal seam mining is an important method to reduce stress, which increases the permeability of the coal seam. However, in the process of mining adjacent coal seams, many coal pillars remain, which causes stress concentrations and results in a decrease in permeability. Therefore, it is important to study the influence of coal pillars on the stress of adjacent layers and its distribution and evolution in the floor rock. This paper took the Shendong Baode Coal Mine as a case study and investigated the influence of the coal pillar on the stress and permeability of coal seam #11. The results show that under a coal pillar, the relationship between the vertical stress of different floor depths and the width of the coal pillar can be divided into a negative correlation zone, transition zone, and positive correlation zone. The change in the coal pillar width does not affect the pressure relief range or the degree of pressure relief in the adjacent coal seams below the goaf. The field measurements show that after the mining of panel #81,505, the permeability coefficient of coal seam #11 under the goaf increased from 0.1434 to 26.3545 m2/( MPa2*d), increasing 182.7 times, and the drainage mixing volume of boreholes #1 and #2 increased from 1.24 to 1.52 m3/ min. While the permeability coefficient of coal seam #11 from 12.5 m in the coal pillar has only increased by 2.6 times, the drainage volume of boreholes #3 and #4 did not change significantly.

Nov 19, 2022

By D. Kump

The Bullfrog Mine is an underground gold mine that uses the underhand-cut-and-fill mining method. The portal was established on June 18, 1991. Mining is expected to be completed by the summer of 1999. This paper starts by discussing what it took to get from nothing to 2000 tons-per-day backfill, and ends with a hindsight commentary on things that did and did not help.

Jan 1, 1999

The National Institute for Occupational Safety and Health (NIOSH) conducted field tests to evaluate the effectiveness of a wet head continuous mining machine for reducing dust exposure for continuous miner operators. Wet head technology delivers water via sprays to the continuous miner's cutter head as opposed to traditional standard sprays located on the boom and body of the mining machine. The sprays, positioned directly behind each bit on the cutter head, deliver water at the point of attack, serving to cool the bits during mining to reduce the potential for frictional ignitions. The sprays also flood the coal with water to potentially suppress dust generation. Dust surveys were conducted at several mines to evaluate the wet head's effectiveness to control respirable dust exposure at the continuous miner operator location and in the immediate return. Results show that the wet head miner improved air quality at both locations to varying degrees in some cases and not in others when compared to a continuous miner with a standard spray system.

Jan 1, 2010

By G. Markopoulos

Thracean Gold Mining is a Greek Company specialized in gold exploration and exploitation. It is focused on the development of the advanced Perama Hill gold project, which is currently waiting approval of the environmental terms of reference from the Ministry of Environment. We have designed a mine operation that is completely safe environmentally. The mine design exceeds all the standards environmental safety set by the European Union. We are currently negotiating lasting relationships with the communities which surround the mine by creating sustainable projects within the area that will provide sources of income to the region long after the mine is exhausted.

Jan 1, 2007

By D. I. Smith

Constructing tunnels in congested urban areas requires tunnels to be placed closer together and with less cover than was previously necessary. Contract CQ031 of New York?s East Side Access project will construct four six-meter diameter bored tunnels in a three-up one-down ?T? configuration, with less than three meters of soil between the tunnels. Mixed-face rock and glacial till conditions with a high ground water table will be encountered under active railroad yards. The tunnels will also pass beneath the busiest railroad interlocking in North America with cover as shallow as three meters. This paper discusses the challenges of designing segmentally lined tunnels for these conditions.

Jan 1, 2008

By M. Pawlik

The rheological properties of mineral suspensions affect the design and operation of transport, mixing, size classification, grinding, gravity concentration, flotation and de-watering systems. In many cases, the rheological properties can be modified to improve processing through the addition of chemical additives. These additives may be either organic or inorganic and generally affect the state of particle aggregation or dispersion. Inorganic modifiers act primarily by affecting the surface charge of mineral particles and thus control the magnitude of electrostatic attraction/repulsion between particles. The action of organic additives (polymers and surfactants) is a combination of electrostatic and steric forces – the latter being related to the molecular weight of these reagents. While low molecular weight polymers are dispersants (viscosity reducers), high molecular weight polymers are likely to induce flocculation and increase yield stress.

Jan 1, 2004

By None None

Use this month wisely — go online and take advantage of your new member benefit. As an SME member, you can read and download for free all of the full-text papers of the Mining, Metallurgy & Exploration (MME) journal, including the 22 papers in the launch Special Issue on Mineral and Metallurgical Processing in Honor of Professor Emeritus Douglas W. Fuerstenau as well as the archived articles of Minerals & Metallurgical Processing (MMP), all the way back to Vol. 1, No. 1. Just follow the instructions on this page.

By D. W. Olson

The estimated value of natural gemstones produced from U.S. deposits during 2004 was $12.9 million. This was a 3-percent increase from that of 2003. U.S. gemstone production included agates, amber, beryl, coral, garnet, jade, jasper, opal, pearl, quartz, sapphire, shell, topaz, tourmaline, turquoise and other gem materials. More than 60 varieties of gemstones have been produced commercially from U.S. mines. But commercial mining of gemstones has never been extensively undertaken in the United States. Most of the deposits have been relatively small compared with other mining operations. In the United States, much of the current gemstone mining is conducted by collectors, gem clubs and hobbyists rather than business organizations.

Jan 1, 2005

By R. M. Cox

The ground forces generated by a properly installed and tensioned mine roof truss assembly can provide permanent mine roof support, even in severe ground conditions, either by direct suspension of the rock loads within the potential failure zone above the mine opening or indirect reinforcement of the natural rock arch that tends to form within the immediate mine roof. Notable advancements in mine roof truss support systems hardware and design technology have occurred since the introduction of the in situ mine roof truss concept for permanent mine roof support in 1966. The systematic installation of mine roof truss support systems has proven to be a very effective method of mine roof control room and pillar mines under a wide variety of ground conditions, even in areas otherwise considered unmineable because of severe roof control problems. Properly designed mine roof truss systems have also been used for permanent support of mine slopes and haulage tunnels.

Jan 1, 2002

By Ö. Kaya

The removal of gangue minerals from three different graphite ores (Inebolu, Akdag?madeni and Çoraklidere) from Turkey by acid leaching was studied. Acid leaching experiments were applied to the flotation bulk concentrates, which were obtained in determined optimum conditions after preliminary flotation tests. The effects of acid type, acid concentration, leaching temperature and leaching time on the dissolution of gangue minerals were studied. The most suitable leaching conditions were determined to be 20% HCl + 4% HF for acid type and concentration, 85 ºC for leaching temperature and 4 hours for leaching time. After removing the gangue minerals at these optimum conditions, the total carbon contents of the samples from Inebolu, Akdag?madeni and Çoraklidere increased from 23.51% to 40.07%, from 37.93 to 60.47% and from 42.28 to 59.47%, respectively.

Jan 1, 2009

By Frank L. Peterson

This paper deals with problems of groundwater development in an insular circum-Pacific environment, and is not oriented as such to mining and mineral development. Nonetheless, because a reliable water supply is necessary for most mining and related support activities, and since water supplies are limited in many insular parts of the Pacific Basin, groundwater development is a subject which must be frequently addressed. Because many in the audience may be already familiar with groundwater development for continental environments, I have chosen to deal with groundwater occurrence and development problems which for the most part are unique to insular environments. In such environments, the local geology plays a critical role in determining groundwater occurrence and its suitability for development. The three examples discussed in this paper-Hawaii, Guam, and the Marshall Islands-were selected because they illustrate groundwater occurrence in a wide range of geologic conditions. For example, the Hawaiian aquifers consist primarily of basaltic lavas, while Guam is made up of andesitic lavas and coral reef limestones, and the Marshall Islands are coral atoll deposits. Despite differences in aquifer size and rock types, the principal mode of groundwater occurrence at the three sites is similar; thus, development strategies are also similar. Figure 1 shows the location of the three sites.

Jan 1, 1982