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By Frederic Lahee

THE total production of crude oil in Texas during 1924 was said to be 133,613,985 bbl. as compared with 125,991,628 bbl. in 1923.1 Subtracting from these figures the yield of the Gulf Coast fields, there remains, for the other part. of Texas, a yield of 106,272,573 bbl. in 1924, as compared with 101,931,595 bbl. in 1923. This represents an increased, production of over 4,250,000 bbl. for all of Texas outside of the Gulf Coast or Salt Dome fields. Within this same region, in 1924, there were 3624 completions, of which 2352 were oil or oil and gas wells, 7 were gassers, and 1265 were dry holes. Thus, nearly 35 per cent. of the completions were dry holes. In 1923, there were 4134 completions, with 2853 oil or oil and gas wells, 2 gas wells, and 1279, or 31 per cent. of the total, dry holes. Outside of the Gulf Coast region, six major pools were discovered and developed in 1924.; two pools, previously discovered, were extended far beyond their limits at the end of 1923, and many smaller pools were opened. The major pools were the Big Lake field, in Reagan Co., the New Richland field, in Navarro Co., the Harmel, Carey, and Ragle pools, in south Archer County, and the Wortham field, in Freestone and Limestone Counties. Fields that were notably extended were the Panhandle producing area and the Luling field. Many wildcat wells have been drilled; most -of these were failures, but several opened .pools and several have had sufficiently favorable results to. lead to further drilling. The activity of the operators in searching for new production was very intense during 1924, and indications point to as feverish a campaign during the coming year. This will be stimulated by rising prices for crude oil. There are good reasons for believing that new pools will be discovered along the Mexia fault zone, in Archer, Young, Baylor, and Throckmorton Counties, in the great central region of Texas where we now have the Mitchell County and Reagan County pools, and very likely in the eastern Red River Counties including Cooke and Grayson. On the other hand, with the opening of the year, there is no new big pool in sight. An outstanding feature of the production end of the business is the increasing reliance placed on geological work and geological recommendations. Not in five or six years has there been such a demand for first-class geologists.

Jan 3, 1925

By Nico Steenekamp

At Lonrho Platinum in South Africa, ores from both the Merensky and UG2 reefs of the Bushveld Igneous complex are treated by flotation and smelting to produce a nickel-copper matte which serves as a collector for the platinum group metals (PGM' s). The nickel-copper matte was originally shipped to Norway for treatment and recovery of the contained base metals, with the return of the PGM rich concentrate to South Africa. The Lonrho Platinum Base Metal Refinery was commissioned in 1985. The original process employed a Shenitt Gordon design. The converter matte is treated in a refinery which utilises both atmospheric and pressure leaches for the dissolution of base metals to produce nickel sulphate crystals, copper cathode and a PGM concentrate. This paper refers to flowsheet and operating changes as well as improvements within the Base Metal Refinery.

Jan 1, 1999

By K. D. Jacob

MONTANA Phosphate Produucts Co., a subsidiary of The Consolidated Mining and Smelting Co. of Canada Ltd., operates three properties near Garrison, Mont., known as the Anderson, Graveley, and Luke mines. All three are underground operations, mining the same narrow bed at points several miles apart. The Anderson, the oldest and largest of the three, has produced about 700,000 long tons since 1929. The Graveley has produced slightly over 100,000 long tons since 1940, and the Luke, acquired in 1943, is still in an early stage of development. The great bulk of the output has been shipped to the Trail, B. C., plant of Consolidated Mining and Smelting Co. for use in the manufacture of fertilizers. The phosphate seam is the basal member of the Permian Phosphoria formation. In all three mines it has a uniform thickness of 3 to 4 ft. of oulitic phosphate, with a few shaly partings. The overlying part of the formation comprises about 50 ft. of chert and the immediate footwall consists of a few feet of shale and sandstone. underlain by the Quadrant quartzite.

Jan 1, 1944

By The Staff

"THE property of Red Mountain Mines Limited is located 11/2 miles north and west of the town of Rossland, in southern British Columbia. The mine is situated on the flank of Red mountain, famous in pioneer days as the site of a number of profitable gold-copper producers. Mining and milling commenced in May, 1966, and by the first of July the concentrator was treating close to its average design capacity of 400 tons per day. The following description of the property and its operations is divided into three parts, dealing respectively with geology, mining and milling.GeologyAll the known ore reserves of Red Mountain Mines occur on the Coxey claim, on the west slope of Red mountain. Although there are indications of molybdenite mineralization elsewhere on the Company's property, these have not been developed.The Coxey and adjoining areas are underlain by the Mount Roberts formation of the Rossland volca-nics. This formation consists of an interbedded series of volcanic and sedimentary rocks, mostly brecciated and silicified near the ore zone, and all intruded by igneous rocks which occur in various forms, and vary in composition from basic to acid. The country rock in the vicinity of the mineralization seems to be mostly a volcanic, approximately andesitic in composition, and possibly a surface flow. There is much banding, some of which is undoubtedly due to tuff and agglomerate layers, and some to narrow, siliceous, sedimentary horizons such as the surface exposure of the main ""A"" orebody, much of which was a thin capping of greyish banded rock that looked like quartzite. The drill holes also intersected occasional layers of black, argillaceous quartzite, sometimes altered to a greenish colour. The whole assemblage has been silicified with varied intensity, sometimes to such an extent as to have obscured or obliterated the original characteristics. The mineralized zone has also been strongly brecciated, the fragments varying in size from less than an inch up to large masses, best described as a mega-breccia. Anomalous results obtained in drilling, such as sedimentary sections that do not appear in adjoining holes, may sometimes be due to the presence of these large blocks, no longer in their original position. The whole volcanic unit is thus very complex and confusing. For practical purposes, the ore may be said to occur in a greenstone formation with minor sedimentary interbeds and considerable later igneous material."

Jan 1, 1967

By WILLIAM J. LINNEY

MAGNETITE ore from Lyon Mountain, so- called "Low Phos Chateaugay," has long been known to the iron and steel industry for its almost complete absence of impurities. These magnetites occur along the northern foothills of the Adirondacks in several parallel and folded stringers which are continuous for several miles, striking generally northeast-southwest and dipping usually over 45° to the northwest, or roughly toward the St. Lawrence River. Ore of minable thickness is found in shoots of various sizes as to length and breadth, but of undetermined and possible great depth.

Jan 1, 1943

By W. D. MOTTER

THE following brief description of the status of operations of the Chile Exploration Co. at Chuquicamata, Chile; and of the plant as it exists today, points out the-great progress that has been made since the initiation of prospect drilling in 1912. During the 11 years which have elapsed since then, a group of small mines, eking out a 'precarious existence, has been consolidated into one large operating property,, taking high rank among the world's producers of copper. After a drilling campaign followed by a construction period, the plant first started operations in 1915. Since then production has been gradually increased, as world conditions permitted, until the present status has been reached.

Jan 1, 1924

By U. M. Mutnti

In order to meet the stringent market requirements for high purity cobalt, ZCCM commissioned the VIR plant in December 1982. The plant comprises a 4.1 tonne/heat vacuum induction furnace with a rated annual capacity of 2,500 MT of barstock. In the VIR furnace, molten cobalt is held under vacuum at 1600°C resulting in the removal of more volatile impurity elements by distillation. Operations todate have demonstrated that Pb, Zn and Cd have good distillation rates in excess of 95%, leading to cobalt containing 1 ppm or less of the above elements. Removal of other impurities such as Se, Bi is about 65% with the finished product still assaying around 1 ppm of each of these elements. Vacuum refining of cobalt offers an economic route for producing higher grades of cobalt from the type of concentrates and treatment processes available within ZCCM. The consistency of VIR cobalt quality has been confirmed by ZCCM and some of its alloy customers.

Jan 1, 1988

By Albert Stazicker

AT Climax the warehouse department operates as an independent unit similar to the mine and mill departments. It has the responsibility of receiving, checking, unloading, and storing all material and supplies delivered to the plant. In addition, the transportation of all supplies comes under the direction of the warehouse so that prompt delivery of supplies to all departments is one of its major functions. The transportation division operates heavy and light trucks, trailers, two large tractors, and two snowplows. In addition to delivering supplies it is also responsible for snow removal from the roads, hauling of sand and gravel for concrete and domestic coal to employees. and all miscellaneous work involving the use of tractors or trucks.

Jan 1, 1946

By W. H. S. McFarland

THE Yukon Consolidated Gold Corporation, Limited, a Canadian company, operates alluvial gold dredges in the Klondike goldfields of Yukon Territory. Its operations are of unique interest to Canadian mining as it is the only large-scale placer mining operation of this type in Canada. Its properties lie in the valley of the Klondike river and its tributaries, Bonanza, Hunker, Bear, Last Chance, and All Gold creeks, and in the valley of Indian river and its tributaries, Dominion, Gold Run, Sulphur, Eureka, Montana, and Quartz creeks. At the end of 1938, they consisted of 1,650 placer mining claims and 9 leases or concessions. They cover a belt with an area of approximately 1,000 square miles. This vast area covers in part claims which have been previously worked by other methods such as 'drift' and 'open-cut' mining, and areas which were too low grade for such methods. The ground held by the Company is not held in freehold but in the form of mining claims and mining leases granted by the Dominion Government under the provisions of the Yukon Placer Mining Act. Full-size creek claims are 500 feet in length by 1,000 feet on either side of the base-line. Hill and bench claims are 500 feet up and clown the valley and 1,000 feet at right angles to the valley. All claims are held on the basis of an annual renewal fee of $10 for each claim plus 'representation work' of an assessed value of $200 per claim per annum. For the purpose of such representation work, claims may be 'grouped'. This means that work done by one dredge is sufficient to 'represent' a comparatively large block of claims. It is only in this way that it becomes possible to consider operations on a large scale over a term of years, for such operations would obviously be impossible on law-grade ground if representation work had to be done separately on each individual claim in each year.

Jan 1, 1939

"Chairman: Dr N. G. W. Cook Rapporteur: Mr M. P. RobertsPapers:Planning open pit mining operations using simulation by A. Bauer and P. N. Calder Simulation for control of underground liquid flow by G. N. Pitts and P. B. CrawfordEvaluation of production strategies in a group of copper mines by linear programming by P. H. Williams, J. N. Brooke and D. M. PoulterAn equipment maintenance system by D. W. Dean and J. A. RyderTaken as a whole, the difference between the four papers in this session were perhaps more illuminating than their similarities. The titles of the first and second papers contained the word 'simulation', and in both papers random number generation was relied upon in the selection of inputs from empirical distributions, but the nature of the models to which these values were inputs were quite different. The third paper displayed another method of uniting the empirical and the theoretical in a linear programming formulation whose matrix coefficients were measured empirically, and here some apt remarks on computer implementation were included. This paved the way for the last paper which abandoned all theoretical pretensions in favour of a detailed description of computer implementation and perhaps as a result gave rise to the most feeling audience participation.The systems mentioned were developed for the iron, petrol, copper and gold producing industries in the US, Canada, Zambia and South Africa..As with all the parallel sessions, contributions from the floor may have been limited by the shorter time available to delegates to acquaint themselves with the papers before the session. In spite of this, and due largely to the active chairman¬ship of Dr Cook, the discussion during the session which is summarized here contributed much to the information contained in the papers themselves.In his presentation, Dr Calder summarized his paper. He expected that simulation would be used in future on an almost universal basis in open pit mining. It could contribute new knowledge more cheaply than experimentation in the flea For example, this study had shown what was previously thought to be a matter of more shovels and trucks was really a blasting problem, and improving blasting had increased production to the desired level. The simulation had shown that uniformity of truck performance was a desirable factor. It had also been used to study the advisability of a dispatching system.Dr Ramani contended that where equipment characteristics were available, deterministic standard simulation could adequately simulate systems in which interference occurred. Operator performance could be measured against perfor¬mance curves predicted by standard simulation and poor operators spotted and retrained. The present system did not take into account variability in truck loading, for instance. Dr Calder replied that if the number of variables was large, the standard approach became too complicated for operating personnel to follow. He admitted he had not tried it. The variability of truck loading could be coped with easily using the Monte Carlo approach. Operator variability was already incorporated because the time studies are actual."

Jan 1, 2014

By W. E. Field

In the Coast Mountains approximately 110 miles north of Vancouver, the gold mine of Bralorne- Pioneer Mines Ltd. lies at an elevation of 3500 ft. The deepest or 41 level in the mine is at an elevation of 1400 ft below sea level, and the rock temperature on this level is 122.5°F. The thermal gradient is 1 "F increase in temperature for each 67.5 ft increase in depth. The mine produces between 500 and 600 tons per clay, utilizing an adit two internal shafts, and one service shaft from surface. The Queen shaft, extending from the 26 to the 41 level, IS the deepest, and most production now comes from this area. Stoping in by cut and fill using mill tailing hydraulic backfill.

Jan 12, 1963

By L. M. Kaas

Production planning techniques, particularly a production scheduling model are proposed for use in taconite mining in Minnesota. Applications of the scheduling model, on a two-year mine plan, which evaluates the equipment involved, are detailed. Data and tables are included. INTRODUCTION Fifty years ago Walter Swart, a mining engineer investigating the Minnesota taconites for the Jackling interests, made this report: "There is no doubt in my mind that this taconite mining is a game worth playing and that it can be played to a successful finish. It seems now only a question of men, money, methods and details."' The prosperous industry envisioned by Swart and other taconite pioneers is today a reality. Its growth has been spurred by technological advances in mining and beneficiation, depletion of natural ore reserves, and improvement of the economic climate. However, the massive problems that were solved to make this development possible are only a foreshadowing of the questions of "men, money, methods and details" that will be encountered in the future. The increasing demands for higher quality taconite pellets have already forced producers to examine better methods of quality control for their operations. THE NEED FOR PRODUCTION SCHEDULING The maintenance of fairly constant crude ore characteristics is of major importance to mill quality control. Through careful mixing of ore from storage bins, the concentrator staff can partially reduce the deviations of the feed analysis from the analysis desired. However, the limited effectiveness of bin mixing systems has caused some mining companies to utilize large capacity blending piles to reduce grade variations. Although the analysis of material being reclaimed from such a pile is relatively uniform, raw materials still must be scheduled from the mine into the pile in such a manner that the average analysis of all material is close to the feed analysis prescribed by the mill. PRODUCTION SCHEDULING MODEL Minnesota taconite mining companies have used three analyses to estimate how a certain ore will react to concentration. These factors are the crude magnetic iron content of the ore, the iron content of the plant concentrate produced from the ore at a standard grind, and the grindability index of the ore. The actual laboratory tests used to determine these factors have been described by Apuli.2 These data are obtained from analysis of diamond drill cores, and are the established criteria used by mine planning engineers to formulate taconite production schedules. Variations in the grade of mine output should be controlled by any production scheduling system. However, to be truly practical, production scheduling methods must also consider many of the less tangible variables that affect mine operation. These include pit layout, available equipment, and ownership of ore leases. The number and scope of the variables inherent in this type of mine planning suggested that a computer simulation could be used to solve the problem. The preparation of information for use with a computer simulation program was the initial phase of this project. Meaningful data was developed from logs of diamond drill cores. Analyses were related to their respective areas of influence by means of mine maps, Fig. 1. The three assay variables and tonnages for each area were punched on cards. In addition to these values, a location code number was punched in the first eight columns of the cards. This code is explained as follows: Column 1 Bench number Column 2 Quadrant location as determined by mine reference lines Columns 3-5 East-west coordinate Columns 6-8 North-south coordinate The heart of any simulation techniques is a well engineered mathematical model. To develop a model for taconite production scheduling, the relationship between the three assay variables had to be established. Because changes in each analysis factor affect the mill circuits in different manners, a weighting system was used to determine the relative im-

Jan 1, 1967

By C. B. Manula, H. Gezik

In planning modem-day mining operations, management needs to pass from the area of subjective decision-making to an area of objective decision-makirlg. Planning procedures currently being practiced by many mine managers depend primarily on common sense and trial-and-error methods which oftentimes never reach optimum solutions. For this reason, an attempt is made to provide an understanding of linear programming to solve production planning problems. More specifically, a linear programming model is proposed to solve the production scheduling problem as it was found to exist in the crushed stone industry. Optimal production scheduling is of prime concern here, since the industry has to cope with seasonal demands for its products. The solution, as determined through the application of the model, provides management not only with an optimal production schedule but also with the following information regarding the improvement of existing facilities: (I) the location of bottlenecks which limit production and profit; (2) the directions in which the company i fixed equipment should be expanded or modified; and (3) the evaluation of unused resources. Future trends in stone production will quite likely parallel those in the construction industry. Continued record expenditures for structures such as dams, highways, and buildings are the reasons for this accelerated growth. Production forecasts for the next decade are predicted to be around one billion tons with an approximate 7% annual increase. The problem of increasing production from 570 million tons in 1966 to 1 billion tons by 1976 offers no small challenge. This situation is further compounded by other problems and economic factors. Population expansion, government regulation, labor agreement, and changes in technology wd cause managers and operators to be confronted by many more complexities than characterize present-day operations. Some of these. problems and economic factors are: (1) In some metropolitan and other urban areas, easily accessible sources of stone are almost depleted. Transportation costs will be a prime concern of the industry. (2) Population growth has forced residential expansion to a point where many quarry operators must conform to urban and suburban regulations. (3) Government regulation in regard to air and water pollution, noise, and reclamation as well as zoning developments necessitate that crushed stone producers keep abreast of changing conditions and requirements. (4) The crushed stone industry operates under pressure of a highly competitive situation. Every company's objective is to retain a favorable marketing position by exercising great attention to production and marketing costs. This is rather difficult, since the crushed stone industry is one segment of modern mining which has to cope with a seasonal demand for its products. Among the problems posed here, the one of exercising great attention to production and marketing costs is of current interest to management. Under seasonal demand conditions, this problem creates further difficulties for managers who need to plan and forecast. STATEMENT OF THE PROBLEM Various methods of Operations Research have been developed to handle a problem whose genesis is explained above. It is very seldom, however, that these quantitative means are used in practice by the mining industry. This paper describes the use of Operations Research methods to solve a production planning problem when demand is seasonal. The seasonal production planning problem is an important one because of the substantial costs associated with changing production, employment, and inventory levels to adjust to seasonal sales patterns. Most companies try to operate within reasonable levels of employment changes and hold inventories within storage capacities. In general, little or no attempts were made to develop minimum cosl schedules or to provide objective means to compare various production policies. When demand varies within a fixed time period, 11:-oduction requirements may be met by following one

Jan 1, 1970

By W. B. Wise, H. D. Attra, W. M. Black

The purpose of this paper is to illustrate a comparatively new approach for solving a problem that has plagued oil producers for many years—how to make the most money with available field production capacity. In a very basic operation such as a top-allowable one-well field, a computer and staff of engineers are not required to determine that the best operation is to produce that well at its maximum for as long a time as it will produce. However, as the problem becomes more complex and the number of wells and number of reservoirs increase, it probably will be a wise choice to devote some engineering thought and calculation time to determine the best way to operate that field on both an ultimate and day-to-day basis. Continued developments in the field broadly referred to as "operations research" have led to a number of useful engineering analyses for optimizing field operational problems. One of these techniques, termed linear programing, is parlicularly interesting because of its potential applications to the study of complex oilfield operating problems. Linear programing is concerned with the problem of planning a complex set of interde~endenl activities in the best possible (optimal) fashion. A field application of linear programing is being used to maximize daily income from a multi-reservoir producing operation. The initial results of this study indicate that the linear programing technique (I) can be applied effectively to field problems, (2) can be used to detect unsuspected avenues for improving operations and (3) can effect a significantly improved means of controlling field operations through the use of the highspeed computer. INTRODUCTION The usual approach for studying complex field operational problems has been to look in detail at several basic plans suggested by judgement and experience and, then, to choose the best plan from those investigated. This approach is entirely satisfactory provided: (1) that judgment and experience alone will reliably pick the best or near the best program as one of the plans to be investigated; and (2), and most important, that the factors which control field production will not change. This paper deals with the large group of field operations which are at least one-step removed from a satisfactory solution using the conventional method of analysis. Problems such as pipeline- and gathering-system design, transportation studies, large field development projects and multi-reservoir producing operations fall in this latter category. To find the best program for handling these problems when the best program is not obvious, a complete optimization study is required, and high-speed computers are required to continually update the program once it is selected. Operations of this type have an extremely large number of possible solutions. However, only one will result in maximum economic return and, more important, this one program must be re-evaluated and adjusted constantly to accomodate such changing field factors as the number of producing days, the price of crude, the discovery of new reserves, declining reservoir pressure with subsequent decline in production and a host of other factors which characterize specific operations. One of the most widely used, direct methods of optimization is a numerical procedure termed "linear programing", which is designed to investigate systematically each of the possible solutions involved in a given problem, determining rapidly and uniquely the optimum answer. As implied by the name, linear programing requires that all field variables be either defined or expressed in a series of interdependent linear equalities or inequalities. These relationships are solved simultaneously, using a form of matrix solutions to determine the optimum values for each producing variable that will maximize net profits. The solution techniques used in a recent field case study is termed the "simplex method" and is discussed in full detail in Ref. 1.

By T. J. Neil, C. B. Manula, O&apos

This paper describes a simulation model developed to analyze truck haulage problems as they are found in the open pit mining and construction industries. The model, using a computer, cycles trucks between their assigned loading and discharge points over a measured haulage route. Required parameters for model operation include the number and type of operating trucks and loading units, maximum truck acceleration and velocity, a realistic vehicular deceleration rate, and the ratio of ore to total material loaded at each origin. Equipment performance characteristics, system profile characteristics, and service time distributions are also included. Records are kept of all waiting times at the loading and discharge points and of any truck interference on the haulroads (moving queues), and a current journal of ore and waste production is maintained. In the pursuit of reduced truck haulage costs, management is confronted with three particular problems in truck and shovel mines. 1) What is the best assignment of trucks to shovels in the system? 2) If new equipment is needed, which new shovels and trucks will operate most effectively in the system? 3) Are any physical changes in the haulage layout warranted to increase productivity? For small open-pit mines the answers to these questions may be obvious. However, for larger operations complex problems are encountered with production and system configuration relationships usually being unknown. The mining simulator discussed here was developed to aid management in evaluating alternative pit-haulage schemes to reduce the risk involved in the selection and assignment of equipment in open-pit truck and shovel mining systems. There are two fundamental differences between this model and other truck haulage simulators: one is a difference of degree, the other a difference of kind. This model can simulate more complex systems than previous models by allowing transportation of material from multiple mine faces to multiple mine destinations and by being readily adaptable to a wide variety of mine layouts. The second difference that characterizes the model is the standard simulation of truck movements. This technique enables each vehicle to perform according to its mechanical capabilities and the physical profile of the haul road. Among the similarities between other truck haulage simulators and this model are the recognition of the probabilistic nature of certain service times in the system and the use of a digital computer to operate the model. The computer inherits the staggering computational and bookkeeping work loads and provides a means for compressing the time scale by allowing several days' operations to be simulated in a matter of minutes. DISTRIBUTION SYSTEM Basic aspects of the system analyzed here may be brought into focus by referring to Fig. 1, a schematic of the typical open pit truck-shovel operation programmed into the simulation model. A single stage materials handling scheme is employed to transport both ore and waste. Loaded trucks are directed to a crusher or stockpile if ore is being mined, while overburden is conveyed to a waste dump. Each shovel has a given number of assigned trucks and has two associated haulage routes, one for waste and one for ore. Up to 5 shovels and as many as 10 trucks per shovel (or a total of 50 trucks) can be operated in the model. Essentially the model, using a computer, cycles trucks between their assigned shovels and the proper discharge points over measured haulage routes. Required input parameters for model operation include the number of shifts to be simulated, operating time per shift, number and type of operating trucks and shovels, maximum truck acceleration and velocity, a realistic vehicular deceleration rate, and the ratio of ore to total material loaded at each shovel. Equipment performance characteristics, system profile characteristics, and service time distributions are

Jan 1, 1968

By Daniel T. Brian, O&apos

Exploration targets and results in the mining industry are commonly summarized in terms of tonnage and grade. Business appraisals require, as additional information, the expected profit or loss implied by the physical summay. The early incorporation of knowledge gained through financial analysis computations can provide a means for economically resolving many common exploration and development problems. Examples of such applications from the activities of exploration planning, reconnaissance, land acquisition, and development planning are presented. While prospecting for mineral deposits, geologists are frequently asked what they hope to find or have found. The response is usually descriptive, such as "50 million tons of 1% copper," and the economic implications are deferred until a capital investment decision is required. At that time, a financial analysis integrating the four analysis components is completed. These components are: 1) Tonnage and Average grade above cutoff grade 2) Capital and operating costs 3) Product value 4) Appropriate profit or loss accounting Close examination of these components reveals that there is no intrinsic reason for avoiding financial analyses at earlier stages in exploration, as long as the uncertainty of the estimate is realized. Tonnage and average grades are commonly estimated at early stages in exploration. For this component, the appropriate cutoff is the major uncertainty. Capital and operating costs are difficult to estimate before detailed quantitative information is available, but estimates useful for the types of applications pertinent to earlier exploration stages are possible. Product value estimates may or may not be difficult, depending on the pricing structure of the particular commodity. A simplified accounting procedure usually may be adopted without introducing any significant loss of validity. This paper describe some of the financial analysis applications which are pertinent during mineral exploration and deposit development. These applications lend additional insight during exploration planning, land acquisition, physical exploration, and development. The examples are oriented toward a hypothetical management investment policy which is based on a single criterion, a minimum 15% discounted cash flow rate of return. In reality, managements use multiple criteria. This simplification is convenient for purposes of presentation and does not invalidate the examples. Computers are useful, but not a requirement, for the applications described. The use of computers provides the results on a more timely basis at costs lower than equivalent manual computations. UNDERLYING PRINCIPLES AND ANALYSIS METHODS Data estimates are subject to uncertainty. The analyst may choose to assess this uncertainty by using one of two principles. Each principle has some advantages. The principle most commonly employed is "assumed certainty." Each financial analysis is based on one set of selected data, which may represent the average estimates, minimum expected conditions, etc. The critical data is identified by making successive calculations, varying the values used. Such studies, called sensitivity analyses, isolate the economic effect of various uncertainties, and guide the allocation of future efforts toward improving the overall accuracy of the analysis. A second principle, "assumed risk," examines the interactive effect of the current uncertainties by qualitatively assigning probability distributions to each data element. These probability distributions indicate the currently appraised chance that a given numerical value will prove to be true. The corresponding procedure, risk analysis, consists of processing many individual financial analyses, each analysis being based on randomly selected numerical values from the probabilistic distributions. The result is a numerical presentation of the uncertainty, but care must be exercised in the interpretation of results. The advantage of this procedure is the direct measurement of economic uncertainty caused by the interaction of uncertain estimates. Kennecott Copper Corp. has developed computer systems for accomplishing sensitivity and risk analyses.

Jan 1, 1970

By Sukumar Bandopadhyay

The escalation in micro-computer power during the past ten years has been instrumental in the realization of operations research and other mine planning tools as a practical mine design tool. Present day utilization of computer techniques varies across a wide spectrum of activities: from operations research to aid mine management through payroll processing to mine design, monitoring and control. With the advances in computers, increasing automation and robotization in mining, operations research techniques are being used in modeling and evaluation. The trend discernable in mine planning is increasing use of operations research models. In the next ten to fifteen years, nanotechnology will enter in our lives in a big way. There are several methods being pursued for information processing at the nanoscale. The mineral industry management in the 21st century will be faced with several new challenges and opportunities from these advances in the mineral industry applications, data and information acquisition and transmission technology

Aug 25, 2002

By J. S. Aronofsky

The areas are identified where the techniques of operations research have been applied in the petroleum industry. Particular emphasis is given to the linear program models that have been used for solving management problems. Of the entire gamut of applications for linear programming, attention is focused on the models that represent underground reservoirs. Such models could be used to help schedule drilling rig operations and to schedule oil production. A framework is established for placing the model for underground reservoirs in the proper perspective along with the models which represent other facets of the oil business. One of the remarkable phenomena of this century is the rapid growth in the size and' complexity of human organizations. The mere size of modern business means that administrative decisions can affect vast quantities of capital and large number of people. Mistakes can be tremendously costly, and a single wrong decision can require years for rectification. Moreover, the pace of modern business is such that decisions are required more rapidly than ever before; the mere postponement of action can give a decided advantage to a competitor. It is not surprising that the increase in difficulty of decision making has been followed by efforts to put this activity on a more objective basis. The growing science of operations research, which relies heavily on the methods that have proved so successful in the physical sciences, is one aspect of these efforts.

Jan 1, 1962

By D. Gatzemeier

The Jewett mine is a surface mine in central Texas, producing about 8,000,000 tons/year of lignite. The mine covers 46,000 acres of land. Approximately 430 people are employed by Northwestern Resources Company and through their efforts, the Jewett Mine is one of the most productive mining operations in the country. The Jewett Mine utilizes a unique structure of staff to convert Operations Research into plans which can be implemented at the "front line" level of the Operations Team. This planning not only makes the mine cost effective and efficient, but promotes creativity in mining, which promotes ongoing research to lower the cost of mining.

Jan 1, 1993

By Guy G. Jr. Granger

INTRODUCTION Due to the current depressed state of the mining industry, many mining companies have been forced to operate at less than maximum capacity. This paper will describe how the AMAX Henderson Molybdenum Mine and Mill near Empire and Parshall, Colorado respectively have utilized operations scheduling and budgeting to achieve production targets at minimum operating costs The AMAX Henderson Molybdenum Mine and Mill have been operating most recently at approximately sixty percent of maximum capacity. OPERATIONS SCHEDULING Production Targets. The production targets are tons, operating days, tons per opera- ting day, head grade, recovery, and pounds of molybdenum. One specific objective of operations scheduling is to meet the production target for pounds of molybdenum. Present market conditions dictate that production be adjusted to match sales of molybdenum. Over-production and creation of molybdenum inventories is unacceptable. In summary, the product ion target for pounds of molybdenum must be met, but not exceeded. Capacity. The AMAX Henderson Mill single stage open crushing circuit capacity is 48,000 dry short tons per day. The AMAX Henderson Mill single stage semi-autogenous primary grinding mill circuit capacity is 38,000 dry short tons per day. All other AMAX Henderson Mi 11 circuits such as rougher flotation, regrind, cleaner flotation, lead leach, filtering, drying and concentrate handling are sized to accommodate the 38,000 dry short tons per day and pro- ducts from same. The tailing delivery system is designed to accommodate tailing from a 38,000 dry short tons per day operation. Constraints. One mill production scheduling constraint is that the mill operating schedule must be the same as mine production, ore haulage and crushing. There is a total crushed ore stockpi1e storage capacity of 240,000 dry short tons. This breaks down to 60,000 dry short tons of crushed ore over the three reclaim pan feeders for each of the four primary grinding mill circuits. However, there is only approximately 10,000 dry short tons of live crushed ore available over the three reclaim pan feeders for each of the four primary grinding mill circuits. Dozers must be utilized to re- claim and push the other crushed ore. Primary grinding mill throughput is

Jan 1, 1986