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By Stanley W. Ivosevic

The commercial success of this low-grade property by Houston Oil and Minerals Corp. (succeeded in interest by Houston International Minerals, Inc.) resulted from credibility of analytical data furnished by the property vendor upon initial examination and from other favorable geologic criteria in evidence; from negotiation of lease terms not detrimental to project economics; from entrepreneurial exploration management; from an encouraging attitude by the US Forest Service; and from the favorable mining and metallurgical characteristics of the ore body. The potential of the property, but not its location, was brought to the attention of the project manager (the author) by the vendor some time before accepting employment with HO&M. In December, 1977, the vendor granted an examination to the project manager, by then an employee; and a lease to the 15 mining claims embracing the property was executed in April, 1978. (See Fig. 1.) Field work and extensive claim staking in this virgin district commenced in May, with drilling beginning in August. At the point that an apparent discovery was recognized in October, only $98,000-including property payments-had been expended on the project. By April, 1979, the deposit was drilled out on 60-m (200-ft) centers and a preliminary re- serve estimate, discounted cash-flow analysis, and recommendations for mine development and additional exploration submitted to management-all at a cost well below budget. The property was recommended for acquisition after matching favorable geologic criteria developed by the project manager. Favorable lithology, structure, and geochemical zonation converged on a subdued low-temperature hydrothermal alteration zone subtly expressed on a pediment surrounding the heart of the property, from which approx [ ]

Jan 1, 1985

By D. C. Dahlin

To identify and characterize potential domestic chromium resources, the Bureau of Mines investigated podifom chromite deposits along the Border Ranges Fault in southern Alaska. Part 1 of this two-part report describes an extensive field investigation and preliminary resource evaluation studies by the Bureau's Alaska Field Operations Center. This paper, part 2, describes the mineralogy of 38 samples that were collected from low-grade deposits in the Chugach Mountains, on the Kenai Peninsula, and on Kodiak Island, and presents the results of laboratory batch beneficiation tests designed to concentrate the chromite. The samples are peridotites and chromites that consist primarily of variable amounts of chromite, olivine, and serpentine. They were beneficiated by a sequence of grinding, sizing, and gravity concentration operations. Twenty-four high-chromium or marginal high-chromium chromite concentrates, six high-iron or marginal high-iron chromite concentrates, and five submarginal concentrates were produced with chromium recoveries that ranged from 37 to 95 pct. Three very low-grade samples were not beneficiated. These results indicate that several of the de- posits may be significant chromium resources, Potential precious metals association with the chromite was also investigated. Analysis of these samples indicates that the chromite deposits are not good platinum sources.

Jan 1, 1985

By Mahesh C. Meyer Jha

AMAX has developed a chloride refining process to produce pure nickel and cobalt metals from mixed sulfide .precipitates, Metal chloride solutions, generated in a hydrochloric acid leaching step and purified in a solvent extraction circuit, are converted to metal oxides .and HCI gas by pyrohydrolysis. A pilot plant consisting of a 30-inch diameter fluidized bed reactor and other ancillary units was designed, constructed, and operated for over one year. Process design was aimed at minimizing energy consumption, maximizing conversion efficiency, and achieving simplicity of operation and control. The operation provided valuable information on process scale up parameters, process control strategies, and materials of construction., Several process variables such as bed temperature, solution composition, solution feeding system, bed particle size distribution, and fines recycle system were investigated to determine their effects on process efficiency and the physical and chemical characteristics of the product.

Jan 1, 1985

By P. A. Rittenhouse

Reserves of potash are more than adequate to meet future world demand for this primary fertilizer nutrient. The bulk of both reserves and current production is located in only a few countries. Recent attention has focused on potential development of smaller reserves to supply local markets in developing areas of the world. However, most new capacity in the next decade will be built in countries with large current production and reserves. The paper reviews current and future projects that will add to the world supply of potash.

Jan 1, 1985

By R. V. Ramani

This volume is the third of a four-volume final report on research carried out under a contract from the U.S. Bureau of Mines on the development of a computer simulation model for surface mine reclamation planning. The other volumes are titled as follows: Volume I: Ore Reserve Estimation, Volume II: Dragline Model, and Volume IV: User's Manual for OPMHS/2. The Mine Coordinate Generator System serves as an interface between the Geology and Reserves System (Volume I, final report) and OPMHS/2 (Volume IV, final report) to provide local mine grid information which is used as input to the decision making process and dynamic simulation routines of OPMHS/2. After the Geology and Reserves System has been successfully run for a property, a data base containing values for each grid cell covering the property is created at the end of execution, if chosen as an option by the user. The Mine Coordinate Generator reads this information and creates a special direct access data set from the sequential data input. When information defining the mine grid is read, the values present in the property grid are for the interpolation of values for each mine block.

Jan 1, 1985

By J. D. Miller, M. B. Mooiman

It has been discovered that gold can be extracted from alkaline cyanide solution with primary, secondary, and tertiary amines by adding certain Lewis base modifiers, such as organic phosphorus oxides. Under these circumstances, gold can be extracted at about pH 10, commensurate with the pH of cyanide leach liquors. The selectivity of the amines and amine/modifier combinations for Au(CN)[2] over other metal-cyanide complexes is discussed. Potential applications for the solvent extraction of gold from cyanide solutions are also discussed.

Jan 1, 1985

By Eric R. Bauer

This Bureau of Mines publication describes and illustrates the physical signs of excessive loading on mine roof supports, installations, and openings. It is designed to assist mine personnel in recognizing potentially hazardous ground conditions, by emphasizing the preliminary effects of developing unstable ground. Increased worker awareness can be expected to reduce the injuries and fatalities resulting from falls of roof, rib, and face.

Jan 1, 1985

This paper is in two parts. The first covers the evolution of dredging leading to the development of the æNZ typeÆ large dredge and the second, current alluvial gold recovery practice in NZ. NZ was the first country in the world to adapt the bucket-ladder dredge to alluvial gold recovery. Between 1857 and 1907, gold worth (at today's NZ price of about NZ$600/ounce*) over $11 billion was exported û from a country with well under one million people at that time. Over 200 small dredges operated, mostly on the Clutha River, around the turn of the century, however by 1940, only 20 or so large machines remained, and the last of these, the 4000 ton 'Kanieri' ceased operations three years ago. Recently recognition of the superior digging power of the hydraulic backhoe and reintroduction of the simple 'trommel and riffleÆ plant with about 80 m3 /hour capacity has led to a proliferation of static and floating plants, there being at least 50 currently in operation on the West Coast and in Otago. There are signs however, that the process of evolution of such small unsophisticated plants into larger, more efficient units has begun again. * At the time of writing (October 1984) NZ$l. 00 = US 50ó. NZ dollarsare used throughout this paper.

Jan 1, 1985

By William F. Daly, William H. Hansmire

Installation of initial tunnel support is often the most uncertain element of work in the design of, and a contractor bidding on, construction of a rock tunnel. The risks the construction contractor and owner assume are delineated to a great extent in the technical specifications portion of the contract documents. It is intended that this paper identify current practices for specifying initial tunnel support and the impacts each case has on the assignment of risks associated with providing the initial tunnel support. Examples of recently completed tunnel designs are given.

Jan 1, 1985

By J. H. Jones

The original term of grant No. 1115174 was September 1980 through December 1983. An extended progress report, covering this time period, was forwarded to the Bureau of Hines in January 1984. The principal investigators were given a no-cost extension of their grant to cover the period January through December 1984. The report which follows covers this latter time period only.

Jan 1, 1985

By S. J. Page

Introduction Dust from cutter machines and face drills is controlled in most mines by water. However, the large quantities of water used in metal and coal mines for dust control and suppression pose serious operational problems in water soluble ores, such as salt, trona, or gypsum. This paper reviews the strategies to suppress and collect dust on cutter machines and face drills where water usage must be restricted to very low flow rates - typically 3.78 L/min (1 gpm) or less.

Jan 1, 1985

By R. Binning

"Economic high density mineral reclamation and subsequent transportation of solids through a pipeline presents many formidable engineering problems.Mineral reclamation system design by theoretical formulas is almost impossible because solids composition, ie. concentration, velocity, moisture content, solid size, etc. can only be controlled within a broad pumping range.Traditionally this has restricted pumping to relatively dilute slurries whereas it is usually preferred, because of economic considerations to reclaim as high a concentration as possible.At Toyo/De-Velde Corp. we recognized these pumping limitations and began to develop and manufacture a range of standard and auxiliary equipment that would exceed these technical restrictions.MATERIAL RECLAMATION & PIPELINE INJECTIONTo minimize fluid usage and increase material reclamation efficiency we designed a submersible dredge mixing pump that uses most of its energy to pick up material from rest, mix it with fluid into a highly concentrated slurry then push it firmly into a pipeline.Where material is too compacted to be mined by the standard submersible mixer pump, auxiliary high torque self contained submersible excavators can be fitted around the periphery of the mixer pump. This is to facilitate excavation and break up of the compacted material into a slurry.High flexibility of this system can be achieved by combining the many equipment variations available into the most efficient format to fit individual site requirements.Whatever combination of equipment is selected, torque is nullified by counter rotating excavators against each other. This increases effective excavator/material bite torque but also allows mixer/excavator rig suspension by cable for deep water material recovery."

Jan 1, 1985

By Denholm WT

Current control practice is reviewed for agglomeration processes, including pelletising, sintering and induration; and for smelting processes, including blast and reverberatory furnaces, flash smelting, the intensive bath smelting processes together with converting. The importance of sensors for on-line control and the status of mathematical modelling is discussed.Future progress in automatic control will require improved component specific sensors and the use of validated mathematical models running in parallel with the process. The possibilities in both these areas are reviewed in light of the trends towards more intensive smelting processes.

Jan 1, 1985

By M. M. Jones

Natural brines are potential domestic resources of minerals. The brines of Searles Lake, CA, for example, contain an estimated one-fourth of our current reserve of tungsten. A key to Bureau of Mines research to recover this critical mineral is the ability to quantitatively measure concentrations of particular constituents in the large number of brine samples and process solutions produced under a multiplicity of test conditions. This paper describes procedures used to determine arsenic, boron, phosphorus, silicon, and tungsten in these solutions by simultaneous inductively coupled plasma spectrometry. A variable in-ternal standard method was used to compensate for tungsten interference on the other analytes in tungsten concentrates, and matching standards were used to determine tungsten in raw brine. Other solutions were analyzed using normal techniques. Analytes were determined down to 1 mg/L with an average precision of 2.5 pet relative standard deviation. Accuracy, estimated using synthetic solutions and by comparison with values obtained by other methods, averaged about 2.5 pet. The methods were rapid, required little sample preparation, and provided the needed sensitivity.

Jan 1, 1985

By C. Richard Tinsley

INTRODUCTION Project financing has been defined by various authors in this book. It is founded on reliance upon the project's own future cash flows and secondarily on the collateral value of the asset base developed. It is chiefly provided by the banking community who, after an assessment of the risks involved (See Chapter 9) analyse the company's presentation (See Chapter 10) in order to structure a financing package often at a leverage of up to 80% debt. This paper describes the various support and structuring techniques used to delimit and abate the risk components perceived from the banks' experience on project development especially for the period before cash flow is generated (pre completion). ADVANTAGES The advantages of project financing extend beyond the offloading of risks to banks. Among the advantages are the following: 1. Longer loan maturity than conventional, unsecured financing; 2. Loan disbursement and repayment tailored to specific mine; 3. Ability of a joint venture without a "track record" to raise financing; 4. Obtain financing where further direct borrowing (corporate credit) limited by existing indentures; 5. Possibility of arranging finance off-balance sheets; 6. Leverage return on equity; 7. Obtain tax savings with certain project financing structures; and 8. Obtain flexible loan repayment conditions. It can also be said that from the point of view of the company, project financing has certain disadvantages which can be summarised as follows: 1. Perceived higher cost (risk premium) compared with straight corporate credit; 2. More documentation; and 3. Need to negotiate risk-sharing aspects. The main attraction of project financing is the ability to pass certain risks on to the lenders within a flexibly funded transaction. (For a more detailed description of the specific risks see the author's paper at the beginning of Chapter 9. The same risk system is followed here.) The typical project financing has corporate support prior to completion and will usually carefully control the resultant cashflow after completion to ensure the bank does not unnecessarily assume further risks of an equity nature. WITHIN THE COMPANY'S CONTROL Operating Risk This is broken into three interrelated segments for ease of description. Technical Component: This must be specifically addressed if new technology or unproven adaptations are to be used. The banks will have scrutinized the sampling and bulk testing work, perhaps grilling the geological, mineral processing, metallurgical, and mining engineering staff or consultants directly. A number of supports are available such as: TECHNOLOGY GUARANTEE: Either the company itself or the process developer will guarantee that the technology will work for a period of, say, six months to two years after startup. If not, then financial penalties will apply although these are rarely sufficient to repay the loan. Many process developers are weak financially and may have little substance to back such a guarantee.

Jan 1, 1985

By Hans von Michaelis

"INTRODUCTIONThe renaissance in gold and silver recovery technology has continued to unfold and it is appropriate to review some of the useful new technologies as well as try to identify some of the industry's future needs and frontiers.The remarkable strengthening in the US dollar has resulted in a relatively low gold price in US Dollars of around $310/oz at the time of writing and silver at $6.25/oz. This general softening in the dollar prices and the recent confusion as to environmental compatibility of cyanidation tailings and effluents, has led to a slowdown in announcements of new operations. Another reason for the slackening off in the USA is that in the past few years a large part of the capital has come from oi I and gas companies that now seem to be losing interest in mineral ventures, and foreign investors for whom the dollar is becoming out of reach. In the author's opinion this represents an unprecedented window of opportunity.Elsewhere in the world where local currencies have weakened, the price of gold is at or close to its all time high.For example, in South African Rands, the gold price was R571.00/oz when the rand was US$1.47 and the gold price reached US$800. Now at US $309/oz and with the Rand at US$0.51 = Rl .00, the local gold price is R600. The price of si Iver in Mexican pesos is not much less than it was when silver reached US$50/oz. Gold, and silver prices in local currencies outside North America are still buovant and at levels where additional investment in new projects is more encouraging.Even in Canada where the dollar is worth about US$0. 75, this provides a smaller but significant cushion compared with US operations. Considering the present strength of the US dollar and even the Canadian dollar relative to many other gold producing countries, there should be significant investment opportunities at today's prices. Mining companies have started to descend on Brazil, for example, where in a matter of just a few years annual gold production has increased from 10 to 70 tons. In South Africa, a Canadian company backed by Swiss financing has been able to take over a Witwatersrand gold mining operation and is installing a huge new tailin9s retreatment plant to process about 1 million tons per month of tailings."

Jan 1, 1985

By David C. Grant

In situ uranium mining offers the advantages of minimal environmental disturbance, low capital and operating costs, and reduced mining development time. It is becoming an increasingly attractive mining method for the recovery of uranium from secondary ore deposits. In order to better understand the process, a laboratory technique was developed and used to study and simulate both the chemical and physical phenomena occurring in ore bodies during in situ leaching. The laboratory simulation technique has been used to determine effects of leaching variables on permeability uranium recovery, and post-leach aquifer restoration. This report describes the simulation system and testing procedure in sufficient detail to allow the construction of the system, and to perform the desired leaching tests. With construction of such a system, in situ leaching of a given ore using various leach conditions can be evaluated relatively rapidly in the laboratory. Not only could optimum leach conditions be selected for existing ore bodies, but also exploitation of new ore bodies could be accelerated.

Jan 1, 1985

By John E. Hagni, Richard D. Hagni

ORE.ID, a microcomputer program, rapidly searches a database of the principal properties for 573 ore minerals. Searches may be performed on any or all of the following properties: mean Vickers hardness, Talmage hardness, mean reflectance, strength of anisotropism, and colors and tints of the mineral and its internal reflections. Data from the International Mineralogical Association - Commission on Ore Microscopy data card file have been used when available. The program displays the number and type of data matches for each mineral found, displays their chemical components, and allows the range to be narrowed or widened for each of the identification properties for repeated searches, if desired. ORE.ID is much more rapid, allows for the use of more identification properties, and involves more ore minerals than any previous identification system.

Jan 1, 1985

By D. A. Lowrie

Environmental concerns and increasing mine development costs have created a need for early information on gold recovery from its host environment. The habit, association, and approximate abundance of minerals which contain unacceptable metallic ions which may be released during process of concentration of gold should be identified in exploration drill core. One case of a "clean" gold orebody is described to show that early petrographic studies contributed to a rapid decision to mine a small deposit by open pit and to custom mill the ore in an already restricted effluent environment. A second example describes identification of an undesirable mercury content and resulting action taken.

Jan 1, 1985

By A. T. Yu, K. A. Young, Ronald M. Hays, Sanford Terry, D. R. Campbell, J. K. Lovrien, W. L. Price, C. W. Matthews, W. R. van Slyke, S. P. Cole

Storage and transport systems are essential for mineral processing. Section 10 includes systems for storage and transport of dry bulk materials, slurries, and water necessary for operation of mineral pro¬cessing plants. All aspects of these systems are presented, including material characteristics; dry material placement in and reclamation from storage stockpiles and bins; dry material conveyance; hydraulics (liquid flow and pumping); slurry characteristics; slurry storage and reclaim, slurry flow (distributors, launders, and pipes), and pumping; water (primary and secondary process, reclaimed, fire, cooling, and domestic) supply, transport, and storage; equipment selection and sizing; power transmission; controls; and health and safety. The mate¬rials considered include crude ore; process and other water supplies; initial, intermediate; and final in-plant materials; finished materials; and tailings and other waste products. Section 10 is a compilation of practical operating data for engineers, technicians, and plant opera¬tors. For the design of mineral processing plants, including selection and sizing of equipment, the design engineer should consult with equipment manufacturers, suppliers, engineering firms, and plant op¬erators with specialized experience in particular materials handling methods. When unusual conditions are encountered, actual pilot or full scale testing may be required to insure adequate design. Operation of mineral processing plants is dependent on the proper engineering and construction of storage and transport systems for dry bulk materials, slurries, and water. It is obvious that processing plants cannot produce the required quantities of semifinished and finished products unless these material can be transported adequately to, through, within, and from the plant. Costs of storage and transport systems may exceed 50% of the total capital and/or operating costs. Considerable attention must be given to the design, layout, and engineering of these systems. These systems are interrelated with the mineral processing method and it is necessary to determine the best combination of mineral processing method and storage and transport systems. Storage and transport systems perform a major supportive func¬tion to mineral processing. The final selection of these systems depends on the final selection of the processing method and related systems (environmental control, tailings and waste disposal, etc.). The process¬ing method determines the characteristics of materials to be stored and transported; distances, elevations, flow rates for transport; and storage requirements. Flowsheet After selection of the processing method and related systems, a flowsheet must be developed. This flowsheet should indicate produc¬tion rate, percent solids or moisture, and specific gravity for all initial, intermediate, and final products or product flow streams. It also may be necessary to know the size analysis, chemical analysis, abrasiveness, and other physical characteristics of various product flow streams. The flowsheet provides basic information for plant layout, storage requirements, and selection and sizing of process and transport equip¬ment. Storage and transport systems often function improperly be¬ cause of inadequate flowsheet data or process revisions, resulting in improper equipment selection and sizing. Further details on plant design are presented in Section 33. After selection and sizing of process equipment, it is necessary to select the type of material transport equipment to be used for in¬plant materials handling as well as crude ore, tailings, and final prod¬ucts. The storage and/or surge requirements, including capacity and location, then are determined. Storage and/or surge capacity is neces¬sary for leveling production rate fluctuations due to variations in material characteristics; production scheduling; equipment mismatch¬ing, failure, or breakdown; and scheduled maintenance downtime. Variations in ore grindability will cause fluctuations in throughput or production rate for grinding mills and variations in ore grade will cause fluctuations in production rate for concentrating equipment. Variations in material moisture content and percent solids can have serious effects on the capacity of material transport equipment. In some cases, a blending system may be desirable or necessary to reduce variations and to obtain uniform production and/or metallurgy. Storage capacity often is needed because of different production schedules for various phases of the mining and mineral processing complex. As an example, the mine and coarse crushing plant may operate on a one- or two-shift-per-day schedule while the fine crushing plant and concentrator on a three-shift-per-day schedule. This would require storage between the coarse and fine crushing plants. Another example would be load-out storage where unit trains are used to haul concentrate or final products. The concentrator could be operated on a three-shift-per-day schedule while only I to 2 hr may be scheduled for unit train loading. This would require adequate load-out storage so that the concentrator can be operated continuously. Process equipment with mismatched capacities requires storage or surge capacity between the mismatched equipment to achieve oper¬ating efficiency. As an example, the fine crushers may have greater capacity than the rod mills. Storage between the fine crushers and the rod mills permits both the crushers and rod mills to be operated at optimum capacity with the crushers actually operating or running a lesser number of hours per day. Mismatched capacities for process and transport equipment also may require storage or surge capacity. Mismatching of equipment capacities most often occurs because of the difficulty in equipment sizing. Thus, the design engineer must anticipate where in the flowsheet these mismatching capacities are likely to occur while making every effort to assure that equipment is selected and sized properly. Equipment breakdown can cause major operating difficulties and lost production. These breakdowns can be reduced with adequate scheduled maintenance. Lost production due to nonscheduled down¬time caused by equipment breakdown can be reduced further by standby equipment and storage and/or surge capacity ahead of essen¬tial mechanical and electrical equipment. As an example, standby pumps and conveyors often are available as part of the in-plant trans¬port system. Storage and/or surge bins and tanks often serve dual functions, such as dewatering, mixing, and smoothing production rate fluctuations.

Jan 1, 1985