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By C. Richard Tinsley

INTRODUCTION The economic analysis (Chapter 3), the engineering studies (Chapter 10), the credit structure (and the consequential funding sources) - Chapter 11, and the overall feasibility structure for any venture are all directed to determining one major decision element: How much and how certain is the reward for taking these risks? Risk assessment is a surprisingly weak area of analysis and is usually addressed in a checklist fashion. It is much preferable to deal within a risk system so that the inevitable tradeoffs among risks are correctly made. DEFINITION The first step toward risk definition must be to ascertain all of the risks to which a project or a company is exposed; otherwise one will remain ignorant of the possibility of a financially crippling loss until it occurs. (Carter and Crockford, 1974). However, simply stating what "risk" is can lead to debate. For example, risk could be (adapted from Vaughan, 1982): -the chance of a loss - uncertainty of loss -possibility of loss - uncertainty -dispersion of actual from expected results - probability of an outcome different from the one expected - possibility of an occurrence of an undesirable contingency -a condition in which a possibility of a loss exists. For the minerals industry financier, the last definition is probably the most appropriate. However, from a mineral company's point of view the definition might well include the possibility of not achieving the expected financial return. RISK CLASSIFICATION Risk identification will be readily agreed as the all-important first step. There are five major "branches" of risk classification. These are: -Statistical -Modellers -Checklist -Project Financing -Insurance The Statistical set discovered probability theory and any risk discussion soon deteriorates into a mathematical jungle (Megill, 1977; Hartman, 1976; Reutlinger, 1970; and Pouliquen, 1970).Their use of terminology tells its own story: coin toss (binomial distribution), gamblers' ruin, delphi (oracle) techniques, monte-carlo simulations, random walks, etcetera. These techniques inadequately represent the judgements necessary in an increasingly complicated and interrelated world. The risk Modellers have turned to the computer to handle these inter-relationships but soon find barriers because of "simultaneity". Certainly the computer has its uses to conduct various analyses (marketed as "sensitivity" analyses) but very often one finds that this involves changing one or two variables at a time, all other things being equal. Unfortunately, in a modern and complex world all other things do not remain equal. The statisticians will, no doubt, jump to their own defence by citing this

Jan 1, 1985

By B. Strohmeier

The role of large, ultra-high-powered arc furnaces in a fully integrated steelworks for the production of flat products is outlined, and an account is given of the technological improvements that have been implemented over the past few years to enable the arc furnace to remain competitive against the conventional route using blast furnaces and top-blown-oxygen steelmaking (LD). Modern secondary refining facilities have been installed, enabling the arc furnace to operate at high production rates in the manufacture of high-quality flat products.

Jan 1, 1985

By J. A. Meech, R. J. Tucker

"A dynamic computer model has been developed to simulate the operation of ore crushing plants. The model was created in a general form to allow imitation of a wide variety of secondary crushing circuits with only minor program modifications. The system can be run on either a microcomputer or a large time-sharing main frame computer as required.The size reduction and separation characteristics of crushers and screens are based on standard manufacturers' design and performance data. These calculations are isolated within various subroutines to facilitate tailoring of the model to emulate any particular plant of interest. Input and output data are presented in a variety of formats. Crusher, screen and conveyor amperages and surge bin levels can be presented in a tabular form along with appropriate alarms arising from improper circuit operation or process interruptions. Graphical representation of the circuit together with strip chart data output are features of the system when operated in a microcomputer environment.The program is currently being used at Queen's University as a teaching aid to demonstrate plant operating characteristics, control strategies and design concepts. The acceptance of, and reaction to the program at this level indicates a good potential for it to provide a valuable tool for operator training."

Jan 1, 1985

By F. J. Palumbo

Effective recycling or disposal of flue dusts is a continuing problem for copper, brass, and bronze smelters. Over 300,000 short tons (st) of dust is generated annually by U.S. secondary copper, brass, and bronze smelters. The Bureau of Mines has developed an alkaline leach method for recovering metal values from copper converter flue dust containing zinc, tin, lead, and copper. The dust was leached with a hot solution of ammonium chloride and ammonium hydroxide to solubilize ZnO. All of the tin (as Sn02) and the metallic copper, lead, and zinc, as well as possible insoluble compounds of each, report to the residue. Dissolved copper and lead salts are removed from the leachate by cementation with granular zinc. Zinc oxide is precipitated by diluting the leachate with water. The tin-rich (9.8 pct) residue has a ready market. The cement product is recyclable to the smelting operation. The ZnO is at least 97 pct pure and has potential marketability.

Jan 1, 1985

By Richard L. Gordon, William A. Vogely

ENERGY POI.ICY-PRINCIPLES AND THEIR PRACTICE Persistently, at least since the end of World War 11, governments have intervened broadly, deeply, and incoherently in major energy markets. If we take a broad definition of energy that encompasses gas distribution and electric power, we can observe regulations of even older vintage. This trend, of course, is not unique to energy. Expansion of government controls has occurred in many areas. The relevant basic question about energy regulation, therefore, is not why is energy special, but whether any general principles exist to explain the wisdom of existing regulations. This review takes place at a time, the middle 1980s, in which a massive onslaught is being undertaken against government regulation. However, the present chapter is influenced primarily by my observations of the failures of energy regulations and not by any inspiration from those ideologically opposed to government intervention. Several subquestions arise in policy appraisal. A primary need is to establish clear objectives and determine the consistency between these goals and the policies imposed. Thus, the first step is to set objectives. The next is to outline ways to attain these goals. However, it should be recognized that many apparently distinct options are economically equivalent. When the goal is to charge producers or consumers for something, it is possible to attain the same result through either government ownership or taxing private transactions. The tax can raise the price to the level the government would have charged if it were the owner. Creation of a Department of Energy is not necessarily any different from having separate energy agencies well coordinated by some small supervisory body. Thus, a distinction should be made between substance and form in policymaking. The critical substance concerns such matters as whether the government imposes financial penalties, incentives, or rules to attain a goal. Then, there can be many equivalent ways to implement the basic policy form. The second prior illustration suggests that one favorite question is how to attain proper integration of policy. At various times, voices on either (or even both) sides of the Atlantic have called for a coordinated energy policy. The U.S. Paley Commission made this a primary goal for future policy. The western European governments that were the founding members of the Coal and Steel, Economic, and Atomic Energy Communities spent much time in the middle fifties and much of the sixties trying futilely to agree on an energy policy. (See Gordon, 1970 for an annotated review). The energy price rises of the 1970s rekindled United States interest in coordination. However, astute observers of the problem such as O. C. Herfindahl of the United States and Maurice Allais (1 962) in France warned the discussions confused form with substance. The crucial issues were what were the goals and what were the best types of policies to attain such goals. Policy suffered, not from poor organization, but from discord about the goals and how to attain them. All this suggests that we need principles to guide policy appraisal. The branch of economic theory known as welfare economics concentrates on providing guidance about the problems of policymaking. The theory examines both what

Jan 1, 1985

By Richard L. Gordon, William A. Vogely

In this chapter, the principles that determine the procedures selected to transform minerals in the ground into usable commodities are re¬viewed.a I argue here that straightforward mod¬ification of the modern general economic theory of production suffices to meet the practical needs of a mineral economist. Therefore, the chapter is largely a review of the general economic theory of production to which is added discussion of the special prob¬lems of the exhaustibility of mineral resources and the economics of finding and developing economically recoverable minerals. In many cases, propositions applicable to all industries are reviewed because they are not treated ade¬quately in prior texts. In the discussion, use is frequently made of basic concepts of differential calculus widely used in economics. However, this is supple¬mented by simpler verbal and graphical treat¬ments, so that those either untrained in the calculus or, as is often the case, whose skills have grown rusty, can still follow the discus¬sion. Where the argument depends critically on the mathematics, this is noted and the justifi¬cation for including the material is provided. In addition, an appendix outlines the critical mathematics and reviews some of the numerous books published that provide the most readable available introduction to the subject. Further¬more, mineral industries examples are used to suggest the relevance of the theory. THE RELEVANCE OF THE ECONOMICS OF PRODUCTION Three basic steps are involved in establishing the relevance of economic analysis to mineral ¬industries decision making. First, the general theory of production must be defined, and its relationship to the simpler models of production stressed in economics textbooks must be noted. Second, the critical modification-considera¬tion of the problems of discovering and devel¬oping mineral deposits-must be developed. It turns out this too involves a special case of the general theory of production. Third, the concept of an economics of exhaustible resources must be explored sufficiently to suggest why its practical relevance is doubtful (or at least far smaller than the numerous writers on the subject seem to believe). The present approach is heavily influenced by post-1945 developments in economic anal¬ysis. Particularly since World War II, economic theory has drastically changed its scope. First, stress has increased greatly upon viewing the economy as a network of intertwined markets known technically as the general equilibrium system.b In this view, not only is the economy viewed as an integrated system, but critical con¬cepts are viewed somewhat differently than was previously fashionable. Specifically, in general equilibrium models, the concepts of supply and demand are rejected as central concepts in favor of a distinction be-

Jan 1, 1985

By C. A. Rowland

Introduction Rod mills are horizontal, cylindrical, rotating, tumbling mills in which steel rods, that are usually about 6 in. shorter than the length of the grinding chamber, are used for grinding media. Fig. 33 shows a cutaway view of a rod mill. Rod mills were first used around 1910 because of their ability to grind in open circuit, consistently produce a uniformly sized prod¬uct, give greater continuous availability, and give lower maintenance costs. They have basically replaced roll crushers and coarse grinding ball mills in comminution flowsheets. The present 20-ft limit on rod length, based on rod manufacturing methods, and the pulp flow char¬acteristics, that influence mill capacity, have established the maximum rod mill sizes' of 15 x 21 Vs ft using 20-ft rods and drawing from 2,200 to 2,300 hp. Rod Mill Uses. The principal uses for rod mills are: preparing feed for ball or pebble mills, grinding gravel or aggregates to the size analysis required for making concrete sand, preparing coarse agitator feed for leaching operations, and for primary grinding circuits, particularly in industrial mineral applications. Wet grinding is the most frequently used grinding process for rod milling. There are a few special cases where dry rod milling is used. Preparing feed for ball or pebble mills is the most common use for rod mills. In ferrous and nonferrous ore concentrators, wet open-circuit grinding is used to prepare ball-mill feed. Figs. 34 thru 37 show the four basic grinding circuits used in these concentrators. In rod mill-ball mill grinding circuits, where the rod-mill discharge contains 25% or more of the grinding circuit product-size material, the rod-mill discharge can be fed to the ball- or pebble-mill classifier as shown in Fig. 34. This is the most frequently used rod mill-ball mill circuit in the nonferrous ore concentrators. In a few concentrators such as Anaconda's Weed concentrator,55 the rod mill discharges to one classification stage which makes the same or a slightly coarser particle-size cut as the classifiers used to close the ball- or pebble¬mill circuits, as shown in Fig. 35. In concentrators where rod mill-ball mill circuits are used to grind low grade magnetic iron ores such as Reserve Mining Co., Silver Bay, Minn.; Erie Mining Co., Hoyt Lakes, Minn.; Eveleth Taconite Co., Forbes, Minn.; US Steel, Mt. Iron, Minn. and Atlantic City, Wyo.; Inland Steel-Jackson County Iron Co., Black River Falls, Wis.; and The Cleveland-Cliffs Iron Co., Adams mine, Kirkland Lake, Ont., the rod mills discharge to rougher magnetic separators (cobbers), the concentrates from which are fed to a ball milling stage as shown in Fig. 36. The same basic circuit is also used with gravity concentra¬tion methods such as spirals (Hanna Mining Co., Groveland, Mich.), tables (St. Joe Minerals, Bonne Terre, Mo.), and jigs. When the rod-mill discharge contains less than 25% of the grind¬ing circuit product size, this indicates an ore that does not readily produce the fines needed to help carry the coarse feed into the ball charge. When this occurs, the fines in the rod-mill discharge are needed in the ball mill or pebble mill so the rod-mill discharge flows direct to the second-stage mills as shown in Fig. 37. Rod mills are used to make feed for open-circuit ball mills such as those used in wet grinding cement raw material (American Cement, Brennan Ave¬nue plant, Detroit, Mich., and Port Huron, Mich., plant, and at the South Dakota State Cement plant, Rapid City, S. Dak.). Grinding gravel or aggregates to the size analysis required for making concrete sand is used in areas where natural sand of the proper particle size gradation required to make concrete is not availa¬ble. Three-quarter inch crushed aggregate is ground to 4 mesh using center peripheral-discharge rod mills (Fig. 38) operating in open circuit. US Corps of Engineers specifications state that the sand product be 93-100% passing 4 mesh and contain no more than 3-7% passing 200 mesh. It may be necessary to classify the rod-mill discharge to remove any excess -200 mesh sand produced in the rod mill. Particu¬larly when processing aggregate with high abrasion indices, center peripheral-discharge rod mills are used instead of hammer mills, fine bowl crushers, and crushing rolls for the production of specification sand. If the -4 mesh size fraction of the rod-mill feed is removed

Jan 1, 1985

By E. Kendall Cork

The traditional financial objective for a single mine company has been to operate as frugally as possible and to pay out most of the earnings as dividends. If the business is cyclical (as it is for most metals) the dividends might fluctuate quite widely. When the mine is exhausted the company disappears. This is still quite a viable strategy for a single mine company. It is not however a viable strategy for the world as a whole. The mining industry is built by mine development companies who can mobilize the people and capital to bring new mines into production. Their skills must include marketing, engineering, finance and other politics. It is very rare for a property to be brought in without the support of a major company that can provide all these services. The exceptions will usually have some other form of big brother support, for example the U.S. government uranium contracts at guaranteed generous prices. The mine development company will seek as a minimum to perpetuate itself by developing new mines in order to replace those which are running out. The more common and more ambitious objective is to grow -- that is to add to its ore reserves and current production by developing more new mines. The financial objectives for that company are very different. Obviously if all the earnings were paid out in dividends there would be nothing left to work with. The first financial policy then is to spend an appropriate amount on exploration for new properties. The next is to retain enough of the earnings to provide the capital for new projects at least sufficient for the equity. There is no magic formula as to what proportion of earnings should properly be distributed as dividends by a growth-oriented mine development company. As a rough rule of thumb distributing half or more will probably leave too little to work on and 30% or so is probably a good balance. However the circumstances differ widely from company to company. It may be useful to set an objective for the rate of growth of a company's earnings. Some have picked rates such as 15% per annum compounded. Others have set a target in real terms which might appear as 10 or 11% plus inflation. Obviously the arithmetic of compound interest is very attractive; however in practice there is much variation. Indeed current returns from existing operations swing widely with the business cycle and there is no assurance that economic new properties will be found according to someone's arbitrary time schedule. For example, Western Mining Corporation Limited in Australia explored for 30 years with little to show for it, but then found the great Australian nickel deposits and more recently the huge Roxby Downs copper. That long dry spell could not have fitted anyone's arbitrary calendar of growth and yet they would not have found such orebodies without that long period of effort. Should they have abandoned the search? Once a new property has been found or acquired there has to be a threshold rate of return on the new capital to be invested against which to evaluate the property's economics. Conventionally this seems to be 15% after tax, a number common in other heavy industries as well. In some cases it is expressed as a lower number plus allowance for inflation. Discounted cash flow analysis is a very useful tool but it does not make the decision. In the end a "go" decision depends on judgment of many factors some of which are numbers used in the DCF calculation whose credibility must be examined. It is curious how frequently investment proposals come in with the rates of return very close to 15%. The project advocates know that a number much less than 15% will not fly and that a number much more is not necessary. With much higher nominal and real interest rates of recent years, even though before tax, logic suggests that the hurdle rate should also rise. The power of compound interest is so great that 20% is very hard to achieve in any cash flow projection but 18% may be a sensible yard - stick. Once again it is remarkable how many project proposals come in with an 18% return. On the record the mining industry as a whole has not been overly restrictive in choosing its hurdle rates of return. This is shown by the abundance of metals in recent years and the failure of metal prices to keep up with inflation. All of the foregoing is standard text book stuff.

Jan 1, 1985

By Brian J. Gorval, Robert L. Kemeny

INTRODUCTION Financing, or providing adequate capital at low cost for developing and bringing a natural resource property into production, is a fundamental requirement for profitable operation. Under the present economic environment the cost of financing any project is gaining more importance than ever. The fundamental keys for success in mining are "the Four M's": Mineral, Market, Management and Money. In recent years, with capital and operating costs skyrocketing, increased emphasis on obtaining adequate and low cost capital funds for bringing in a prospect is essential. For a small mining company there are limited sources for raising funds. In most cases these companies have neither a substantial asset base, nor any cash flow, and they are deemed as risky investments. The issue of shares of capital stock of such a company is probably the most common method of raising funds via the public purse. Alternatively, debt could be used and a source of such capital might be private investors or financial institutions. The company which intends to raise funds from the investing public by way of the sale of equity, subsequently lists those shares for trading on a stock exchange. Going and staying public commits a company to a multitude of complex laws, rules and reporting requirements. The governing bodies are the watch dogs for the public. The largest of such an organization of this kind in the world is the Securities and Exchange Commission (SEC) in the United States. In Canada, the Securities Laws come from within provincial jurisdiction. Most provinces have their own Securities Act, and Securities Commission. It is the Commission which administers the Act, and hence controls the distribution and trading of securities within the province. Extra provincial registration is required for trading and distribution in more than one province. In British Columbia, prior to a public offering, the approval of the Superintendent of Brokers (SOB) and of the VSE must be obtained. THE VANCOUVER AND TORONTO STOCK EXCHANGES There are five stock exchanges in Canada which supply a trading forum in which mining companies may operate. The stock exchanges are located in Montreal, Toronto, Winnipeg, Calgary, and Vancouver. Of the five stock exchanges, the Vancouver Stock Exchange (VSE) and the Toronto Stock Exchange (TSE) are the most heavily used for resource-based issues and are the focus of this paper. The objective of this section is to provide a brief background on the VSE and TSE. The Vancouver Stock Exchange The VSE is Canada's predominant stock exchange for financing resource-based, junior issues. Since 1907, the VSE has acted as a source of funds for mining, exploration and energy companies throughout Canada and the world. Currently, there are over 1400 companies listed on the VSE. During 1983, over 3.1 billion shares traded at a value exceeding CDN$3.96 million. The VSE has developed a reputation as one of the few exchanges where a speculative resource venture may obtain a listing and subsequent financing in a relatively short time, generally five to ten months. The SOB, the Investment Dealer's Association of Canada (IDA), and the VSE all regulate trading at the Exchange. Any irregularities in a company's stock dealings are investigated and trading may be halted by the VSE until a satisfactory explanation has been received from the suspended company. Companies can be suspended from trading or delisted for various reasons. One reason is misrepresentation of facts in documentation submitted to the SOB, VSE, or to the public, through news releases.

Jan 1, 1985

By Mark E. Emerson

INTRODUCTION A long time has passed since geologists encountered encouraging mineralization in their regional exploration program for base metals deposits. Detailed drilling during the following two field seasons served to delineate the configuration of the deposit. Various statistical techniques were employed to provide confidence levels regarding the extent of the reserves and to categorize them according to whether proved, indicated or inferred. At this juncture, it appears that the company has an orebody. Time elapsed? - three years; money spent? - $2.5 million. Much remains to be done before the orebody becomes a mine. The company urgently needs to develop new orebodies to replace its existing mines which are being depleted. It therefore has expended sizable amounts in exploration, the life blood of the company. A staff of specialists is maintained to evaluate new projects and to conduct feasibility studies. The scale of new mining projects today is beyond the resources of most mining companies. Bank financing, therefore, is often vital if the company is to survive. The following scenario describes how a company goes about evaluating mine projects and what is needed to meet lender's criteria in securing the needed financing. MINE PLANNING Now that the company engineers have taken over the project, their concern is no longer with finding ore but in developing it. An exploration shaft has been put down and a tunnel driven into the orebody to verify, on a large scale, what has been seen so far only in pencil- like drill cores. A large tonnage bulk sample is mined and shipped off to an independent metallurgical process laboratory for beneficiation testing. The budget is expended to cover engineering studies. Preliminary capical and operating costs are developed in- house and profitability studies are made based or1 assumptions concerning the markets for the main product and the indicated gold, silver, and other by-products. Time elapsed? - four years; cost to date? - $3.5-$4.5 million. The staff prepares its own pre-feasibility study. After review, the Executive Committee authorizes management to proceed with full-scale studies. The task is to make preliminary designs and to develop definitive capital and operating cost estimates. Specialized consultants will be engaged to study slope stability for the open pit and rock strength if underground recovery proves more feasible. If it is near the sea, an oceanographic report might be commissioned to see if the tailings can be disposed of off shore. Environmental impact studies are commissioned from a firm familiar with government requirements and regulations in this important area. The company subscribes for an expensive multi-client study of the supply- demand-price outlook for the product to support its own long-range price forecast. Now all the numbers are available to make a definitive appraisal of the value of the project. Cash flow analyses and sensitivity studies follow. Reams of computer printouts are generated. Time elapsed: five years. Amount spent? - up to $9 million, depending on the size, complexity and attractiveness of the project. Marginal projects always take longer. Finally, an engineering and construction (E&C) company is given the task of integrating and compiling all the data into a feasibility study. The results of dozens of reports, memoranda, computer printouts, and charts are boiled down to one final summary report of a few hundred pages together with conclusions and recommendations. After thoughtful review at a board meeting, the directors authorize management to proceed with detailed engineering work - provided that

Jan 1, 1985

By Edwin A. Rides

HISTORICAL ORIGIN OF THE EXPORT CREDIT AGENCIES Almost since the inception of international commerce sellers, having manufactured and/or sold and shipped goods to an overseas buyer, have been obliged to accept the risk that they will not be paid for one reason or another. There are many reasons why payment may not be forthcoming, for example, the goods may be lost at sea, or rejected by the buyer or the buyer nay simply not be creditworthy. These risks were brought into sharp relief as international trading became more sophisticated and the practice of giving credit to buyers gathered momentum. Inevitably enterprises sprang up which offered same mitigation of this exposure, accepting houses and later confirming houses and banks were prepared to assure acceptable credit risks an behalf of the seller, usually by discounting trade paper, and for many years the market ticked over reasonably satisfactorily. However, after the 1914-18 War international trade was at an extremely low ebb and its inherent risks were accentuated to a point where they were often commercially unacceptable. Yet a healthy and vigorous international market was indispensable to recovery of the world economy and a number of governments, led by the United Kingdom, perceived a need to offer their exporters a comprehensive form of insurance, particularly to facilitate the extension of credit to foreign buyers. In the United Kingdom the Export Credits Guarantee Department (ECGD) was set up to encourage trade through the provision of export credit insurance. Over the ensuing years others followed suit and now most of the developed trading nations and many developing nations have similar agencies. PRESENT DAY IDLE OF THE EXPORT CREDIT AGENCIES (ECAS ) Traditionally then the BA's role was to encourage trade through the provision to exporters of insurance against the risks of non-payment by overseas buyers of their goods and services. However, during the 1970's the manufacturing industries of most of the developed nations found themselves facing severe competition for business, particularly in the developing world. As a result the more aggressive ECA's began to introduce ancillary forms of cover designed to reduce exporters' risks outside of the credit field. For instance, most of the European agencies now have a form of cover against foreign exchange risks here contracts are denominated in currencies other than that of the exporter's country. Most of the agencies also provide cover to exporters against the risk of unfair calling of bid, advance payment, performance bonds etc and in certain countries, where high inflation rates were endemic, a form of cover against cost escalation. In certain circumstances it is also possible for an exporter to obtain cover against losses arising as a result of the involvency of a partner in a consortium or joint venture. These are all forms of insurance but, also during the 1970's, many of the national export credit programmes took a major step away from their original raison d'etre by facilitating the provision of preferential financing terns for the acquisition of capital equipment by an overseas buyer. This new line of business quickly became an important ingredient of major export financing packages and, as we shall see later, turned out to be extremely costly for the countries providing it.

Jan 1, 1985

By G. A. Smyres

The Bureau of Mines conducted laboratory studies to determine the feasibility of chlorine-oxygen leaching for treating low-grade zinc sul-fide flotation concentrates. Recovery of zinc sulfides by flotation from complex fine-grained sulfide ores is substantially higher in low-grade bulk sulfide concentrates than in the high-grade cleaned concen-trates required for smelter feed. However, there is no commercial process in the United States for the treatment of low-grade bulk zinc sul-fide concentrates. Leaching experiments using reactors of 500-mL and I-gal capacity were conducted on a bulk concentrate containing 19.3 pct Zn, 35.6 pct Fe, and 39.4 pct S. The effects of pressure, temperature, and percent solids on extraction were investigated. The chlorine-oxygen leaching procedure showed promise for treating the concentrates. Zinc extractions of 95 pct or more were obtained by leaching at 50 pct solids in the temperature range of 1000 to 1200 C. Zinc extractions by leaching with chlorine followed by oxygen at reactor pressures of 50 to 100 psig were independent of pressure.

Jan 1, 1985

By V. K. Gupta

"Effect of mill speed on grinding kinetics has been investigated with a view to using mill speed as a manipulated variable for control and optimization of the grinding circuit performance under variable ore hardness conditions. Dry and wet batch grinding tests were carried out for quartz, limestone and cement clinker in a 29 cm x 18 cm laboratory ball mill. Mill speed values selected were 55 and 70% critical. In the case of dry grinding operation, with an exception of quartz, for all materials studied the effect of mill speed on grinding rate was found to be insignificant for sizes finer than about 35 mesh. In the case of wet operation, grinding rates were found to be approximately proportional to the mill speed. The implications of these results are discussed.INTRODUCTIONIt is well known that mill speed has a considerable effect on the grinding rate of the ore particles l-3 For particles of a given size there is an optimum speed at which mill grinding efficiency is maximum (i.e. specific energy consumption is minimum) 3•4. Mill speed can, therefore, be effectively used as a manipulated variable to deal with the disturbances arising from changes in the size and hardness (grinding rate) of the ore being fed to the grinding circuit. Though, it has not been the case so far, with recent developments of ring motors2 and frequency inverters5 a continuous variation of mill speed has now become feasible, and it is expected that mill speed control will soon be a regular feature of plant operation2,6."

Jan 1, 1985

By Wynne Potter

"On the west coast of Cape Breton Island four coal basins have been identified, varying in age and extending from Port Hood northeasterly to Chimney Corner. Those of Chimney Corner - St. Rose in the north and Port Hood in the south belong to the Pennsylvanian Riversdale Group while lying between them are the coal basins of Mabou and Inverness belonging to the younger Pictou Group. Almost all of the coal basins are submarine and coal mining was carried out on all basins at various times. The seams in all basins dip steeply seaward at angles from 10 to 20 degrees but were found to flatten seaward. The coal is ranked as a high volatile C bituminous coal. Ash and sulphur contents are high compared with Sydney coal and the coal has a tendency to spontaneous combustion when stored in large quantities.Of the four basins, the most significant is that of Mabou. At Mabou recent seismic and drilling investigations have indicated that although a sizable reserve of coal may be found offshore the structural problems, particularly faults, and the poor quality of the coal encountered will make it a resource of the future, if at all. Inferred resources have been calculated at 150 million tonnes in four seams over a 10 km2 area and extending 3 km from shore. The quality of the Mabou coals varies with ash, ranging from 5 to 25 per cent and sulphur up to 6 per cent. Calorific value ranges from 25.3 Mj I kg to 31. 7 Mj I kg. The Port Hood and St. Rose -Chimney Corner fields (Fig. 1) contain 16 million and 3 million tonnes respectively, but the Inverness basin is considered to have been depleted. The active mine in this area is the Evans Mine at St. Rose that is currently producing between 30 -50,000 tonnes a year from proven reserves of approximately 3 million tonnes."

Jan 1, 1985

By A. Roy MacLean

"In the Maritimes, there are twelve coal areas. From east to west, these include the Sydney coal field, the St. Rose - Chimney Corner, Inverness, Mabou, Port Hood, Pictou, Colchester - Debert, Springhill, Joggins - Chignecto, Beersville, Lake Stream, and Minto. The first eight are in Nova Scotia while the remaining four are in New Brunswick.In all these areas, the coal was formed during the Carboniferous period, which existed some 300 million years ago. However, within this period not all coal formation took place during the same time. There were three main intervals, which occurred at the time that the Riversdale, Cumberland and Pictou groups were laid down (Hacquebard, 1970). The oldest coals are those of the Riversdale Group. These coals were of rather limited extent, and only a few mineable seams are present, particularly at St. Rose -Chimney Corner and Port Hood. From these two areas only 2 M tons have been extracted, and 'measured' resources of 7 and 9 M tons respectively remain. The Cumberland Group coals are confined to Cumberland County and include the coals of Springhill and Joggins River Herbert -Chignecto. Some 43 M tons have been removed and only 7 M tons of 'measured' coal remain, with an addit10nal 39 M tons of 'inferred' resources. However, there are additional resources at Springhill, which will be discussed in more detail in a later section. The coals of the Pictou Group are the youngest and the most abundant, both in actual number of seams and in regional distnbution. These coals were formed during the Westphalian C and D, a time during which the main coal deposition in Europe also took place. Here belong the coals of the Sydney, Inverness, Mabou, Pictou, Debert, Beersville, Lake Stream and Minto fields. Their total production amounted to 469 M tons or 91 % of the Maritime total of 514 M tons. The remaining resources of all Pictou Group coals have been calculated at 254 M tons of 'measured' coal and 949 M tons of 'inferred' coal. As can readily be seen, the bulk of both past production and remaining resources occur in the Sydney coal field. The Sydney figures represent 73% of total production, and 87% of total 'demonstrated' resources in the Maritime Provinces. Next to Sydney, the Pictou coal field has been the greatest producer, with 59 M tons; it also has the second largest 'measured' resources, amounting to 25 M tons. However in terms of 'inferred' coal resources, the Mabou coal field, ~ith 140 M tons, ranks second to Sydney."

Jan 1, 1985

By W. Petruk, D. R. Morris

"The lead concentrate produced from the volcanogenic base metal ore of Brunswick Mining and Smelting in New Brunswick contains major to trace amounts of iron, zinc, cadmium, arsenic, antimony, copper, silver, selenium, tellurium, bismuth, sulphur, tin, indium, mercury and manganese as impurities. When the concentrate is sintered some of these impurities enter a variety of oxide phases, whereas others precipitate as metals. In the lead blast furnace the oxide phases decompose and the impurities recombine 10 form new phases, most are eventually discharged to the slag. The metals of the sinter remain as metals in the lead blast furnace where even more are produced, and are discharged largely with the lead bullion,IntroductionMany lead concentrates are produced from volcanogenic base metal ores . Such ores contain a wide variety of trace minerals and trace elements , therefore, concentrate s obtained from them will contain the trace elements as impurities . The impurities in the lead concentrate from one such ore, the Brunswick No. 12 deposit of Brunswick Mining and Smelting Corporation (BM S) in the Bathurst area in New Brunswick , were studied as pan of a larger investigation that was conducted to determine the extent of chemical reactions of the sinter within the lead blast furnace(1,2) The lead concentrate was investigated to identify the host mineral s for the impurities, the lead sinter was studied to identify the host phases, and frozen products from different depths within the BMS blast furnace at Belledune, New Brunswick were studied to determine the behaviour of the impurities.T he investigation was performed by pre pa ring polished sections o f the samples and studying them with a reflecting microscope, a scanning electron microscope (SE M) equipped with a Kevex energy dispersive X-ra y analysis system, a microprobe, and a Quantimet 720 image analyzer. The samples were also analyzed by X-ray diffractometer, and individual grains were analyzed by the Debye-Scherrer X-ray powder film method."

Jan 1, 1985

By Davies K. E

Several nuclear techniques have been assessed for application to online conveyor belt analysis of oil yield from Rundle oil shale. The most favourable technique is neutron inelastic scattering which determines the total carbon content of bulk shale samples. Correlations of chemical laboratory assays for 540 Rundle oil shale samples show that oil yield can be predicted from total carbon to within 11 litre/tonne.Laboratory experimental work on 17 bulk samples of Rundle oil shale indicated that carbon and oil yield can be determined to within 0.6 wt per cent and 9 litre/tonne, respectively, using the neutron inelastic scatter technique. A practical neutron inelastic scatter gauge for application on a 23 mm thick reinforced conveyor belt could consist of a 5 curie 241 Am-Be neutron source and a 150 mm diameter x 100 mm thick Nal(TI) detector. With this gauge, the analysis time to achieve a counting statistical error of 6 litre/tonne should be about five minutes.

Jan 1, 1985

By Russell Parrott

Acoustic techniques offer a rapid, economical, non-intrusive method of obtaining information about the stratigraphy and properties of seafloor sediments. During the past decade there has been a dramatic increase in the level of sophistication of high resolution seismic reflection equipment used for seabed and subsurface studies and in the signal processing techniques applied to the data collected with these systems. Processing of data from acoustic sources with repeatable and calibrated output, allows quantitative measures of the reflection coefficient, acoustic attenuation and scattering parameters of the sediments on the seafloor. Graphic recordings of seismic reflection data emphasize the coherent portion of the reflected energy for qualitative estimate of sediment properties and subsurface stratigraphy. Through application of signal processing techniques, quantitative information can be extracted from the coherent and incoherent components of seismic reflection data for estimation of surface character and sediment properties. These calculated parameters can be applied through interpolation between areas of available groundtruth. Acoustic techniques are used extensively to establish the regional geological framework of project areas and can also be used to extrapolate available groundtruth data into previously unsampled areas, and to optimize the design of a sampling program to provide the necessary groundtruth for the survey area.

Jan 1, 1985

By M. M. Papic, J. C. Whitehead

"A sample of Hat Creek coal has been extracted using supercritical aromatic solvents in a laboratory-scale extraction unit. Extract yields in the range 21 to 27 per cent of dry-ash-free coal were obtained.These yields are significantly lower than yields available from high-volatile bituminous coal and some lignites. Thus in a combined extraction/hydrocracking scheme for the production of liquid fuels from Hat Creek coal the char product would exceed that required to supply the energy and hydrogen requirements of the process. Excess char could be used for the production of power or gas for sale.IntroductionThe Supercritical Gas Extraction (SGE) process developed by the U.K. National Coal Board operates in two stages: an extraction stage in which a coal extract is separated from mineral matter and undissolved coal and a subsequent hydrogenation stage.The SGE process is based on the ability of a compressed supercritical fluid to dissolve relatively high molecular weight substrates. It is operated under conditions where a hydrogenrich portion of the coal is selectively extracted in a short residence time extraction stage leaving a hydrogen-deficient char. The process schematic shown in Figure I illustrates that the extract produced is separated from the solvent and passed to a conventional hydroprocessing stage while the char product is utilized in the production of heat, power and hydrogen for the process. An extract yield in the order of 50 per cent dry-ash- free coal represents a ""balanced"" case for such a process in which there is just sufficient char for the provision of these commodities."

Jan 1, 1985

By Willard C. Lacy

Rather than attempting to present a summary of the many and highly varied papers that have been presented at this symposium on sampling and grade control, I will attempt to extract the general philosophy of analysis and approach, and attempt to identify the trend of future developments. First, the term "sampling" is used with its broadest connotations. A sample consists of a representative portion of a larger mass, and must represent the mass not only in the grade of contained metals or minerals, but also in all other respects in terms of mineralogy and mineral quality (1, 5), deleterious materials, recoverability of economic components, physical behavior, geophysical response (I), and even archaeological and environmental aspects (7, 11). The sample must be taken from a locality and in such a manner and quantity that it is representative of the larger rock mass. This calls for complete and accurate geological control and an understanding of the nature and distribution of the contained chemical and physical elements and a record of the effectiveness of the different sampling methods. Second, value of a given mass of ore material is based upon its profitability - the difference between recoverable value and costs to achieve recovery, beneficiation and sale. There is a strong movement in mining geology control toward more complete analysis in determining cutoff grades and in grade control, as illustrated by the kriging of metallurgical recovery factors as well as grade at the Mercur Mine (8). To achieve a "profit- ability factor" as a guide for economic mining practice requires further integration of: 1) the value of contained metal or mineral, 2) percentage recovery of values, 3) dilution of ore with waste rock, 4) addition to, or loss of value as a consequence of by-product materials or deleterious components, 5) cost of producing a saleable product plus mini- mum profit to justify the effort (cutoff), and 6) cost of land restoration (7, 11). All these parameters vary with the rock type, rock structure, mineralogy, depth, geometry, mining and metallurgical methods, but they must be sampled and analyzed if sampling and grade control are to reflect profitability. A wide variety of deposits has been presented at this symposium; each deposit with its own problems and special solutions. Deposits containing high unit-value components, e.g. precious metals and diamonds, present special problems in the obtaining of accurate samples and generally require statistical analysis control methods or may disregard or modify occasional high or occasional low values, based upon experience (12 ) Grade control may be accurate for the long term but may vary for the short term. Bulk sampling is always essential. Deposits containing metals or minerals with low unit value are very sensitive to transport costs, and they are often very sensitive to small amounts of deleterious components or differences in physical or chemical behavior. Problems of sampling and grade control change with the genetic type of deposit, with the stage of deposit development and with the size of the information base. Precious metal epithermal deposits (2, 6, 8), because of rapid vertical zonation and erratic lateral distribution of values, have always been difficult to evaluate and maintain grade control and ore reserves. On the other hand, evaluation and grade control are relatively easy in bulk-low- grade deposits (4, 13). However, these deposits generally have a low margin of profit and are sensitive to mining and beneficiaton costs, price fluctuations and political costs. Industrial mineral deposits (5) often must be evaluated on the basis of their behavior, rather than by chemical analysis. Environmental impact generally increases with the scale of the operation, but certain elements or minerals have especially high impact effects (7, 11). In the exploration phase there is no production control of sampling procedures and careful geological observations are particularly essential. The greatest number of problems is related to the oxidized outcrop where the chemical environment of the ore body has changed and the contained values may have been enriched, depleted or values left unchanged (2, 6). Present evidence suggests that gold values may be very mobile under certain conditions (2, 6) and stable under others. Everything must be sampled in detail. Principal values and by-product or deleterious elements may vary dependent upon their position within the soil profile. Such factors as geomorphic position, erosion rate, vegetation, climate, etc., may affect the interpretation (1, 3). During the development phase it is equally easy to overtest, to have "paralysis by analysis," as to undertest (3, 6). Bulk samplng and testing are

Jan 1, 1985