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Discounted cash flow (DCF) methods are well suited and recommended as a primary valuation method for mineral assets for which there are at least indicated resources and some form of feasibility study containing engineering, production and capital and operating cost data. DCF methods are also applicable as a secondary or check valuation method for exploration properties for which no technical study has been prepared. For projects where little or no engineering, production and/or cost data is available, the process of formulating a project concept by specialists who do not possess experience and expertise in the relevant technical faculties is totally rejected as a basis for applying DCF techniques as a primary valuation method. Such an approach runs counter to The Australasian Institute of Mining and Metallurgy (AusIMM) requirement to apply relevant expertise to specific aspects of mineral valuation. Technical and commercial inputs to mineral valuation should be reviewed by specialists who have specific expertise in the relevant disciplines, and should be tempered by the quantity and quality of technical evaluation which has been undertaken and the development status of the asset.

Jan 1, 1994

By S. Lin, Y. J. Wang

Based on systematic definitions of a generalized multiple fan ventilation system, the concepts of an augmented system, its solution curve and the operating points of the original system are introduced. The Quasi-Newton algorithm is applied in combination with the switching-parameter method to ensure a continuous search along an augmented-system solution curve and identify all the possible system operating points on it. Two example networks are analyzed to demonstrate those concepts and the application of the algorithm for identifying operating points of multiple fan ventilation systems.

Jan 1, 1994

By G. P. Swayn

Recycling of dusts produced in a flash furnace by direct injection provides the opportunity to reduce recycle loads to the reaction shaft, lower fuel requirements and possibly increase metal recovery to products. Ausmelt has provided an Ausmelt lance system for injecting dusts collected from the waste heat boiler and electrostatic precipitator units, directly into the slag melt. This has been installed and operated in the Kalgoorlie Nickel Smelter with systems for feeding dust, for firing with oil and air, and for raising and lowering the lance. Modelling and testwork development of dust injection, results of commercial trials and design considerations for further opportunities of the Ausmelt lance system, are discussed.

Jan 1, 1994

Develop and demonstrate a lightweight material that has low thermal conductivity and that would be suitable for placement using shotcrete methods. This material could be applied in deep, hot mines where mine drifts must be insulated. Its use would decrease mine refrigeration needs and reduce energy costs.

Jan 1, 1994

The Manto Verde copper mine (Atacama Region, Chile) is due to go into production in 1996. It will produce 40 000 tonne/year of copper cathode by heap leaching/SX-EW. Mineralogical studies were undertaken in conjunction with the metallurgical testwork program to characterise the ore and its response to leaching by dilute sulphuric acid. The leachable copper mineralogy is dominated by the oxide copper minerals: brochantite and malachite with minor chrysocolla and atacamite. The gangue minerals include abundant orthoclase, specularite, quartz and chlorite with minor muscovite and trace smectite clay, calcite and limonite. The study showed that complete or partial decomposition of calcite, chlorite, smectite and wad consumed acid and generated solution impurities (Ca2+, Fe2+, Mg2+, A13+, K+, Si4+ and Mn4+2+ ). Although these were manageable at Manto Verde, their uncontrolled build-up could have affected the operation in several ways: the degradation of heap penneability and fonnation of crud in the SX plant from the precipitation of gypsum, goethite, colloidal silica and jarosite; and the entrainment of contaminated pregnant leach solution in the SX organic resulting in the transfer of impurities to the electrolyte and subsequent effects on cathode quality and electrowinning efficiency. In conclusion, process mineralogy played an important role in understanding and managing potential mineral-related problems in the heap leaching and SX-EW recovery of Manto Verde ore.

Jan 1, 1994

This paper outlines the thermodynamic and mass balance principles which affect the distribution of cobalt between matte and slag during the pyrometallurgical treatment of nickel-copper sulphides and considers the implications with regard to maximising the recovery of cobalt from the smelting and converting circuit.

Jan 1, 1994

By D. J. Bowen

"The Great Dyke extends for 540 krn along strike, to unknown depth, and varies in width from 3 krn to 11 krn. Rb/Sr age determinations gives values of approximately 2470 Ma.The Dyke consists of a variety of mafic and ultramafic rocks, many altered to serpentinites. These include, from top to bottom, successions of gabbro/norites, pyroxenites, peridotiteslharzburgites, and dunites/picrites.The layers dip in from either margin, steepest at the edges (20°) and flattening toward the central sections. Four separate complexes are present. From north to south these are termed the Musengezi, Hartley, Selukwe and Wedza Complexes, and are described as 'boat-shaped' or 'pig-troughed'. All are similar in petrological sequences. Physiographically, the Dyke is spectacular in the north, where as a mountain range it meets the Zarnbezi Escarpment. Elsewhere in the central parts there is little surface expression and wide open treeless vleis. Dyke rocks cut through granite and schist belt terrain and are termed 'The Magnesia Belt'.Vast mineral resources exist. These include chrome, asbestos, platinoids, nickel, copper and gold. Up to eleven chrome seams numbered from top to bottom occur in the lower ultramafic sequences. Seams are narrow at 10 em to 30 em but of high grade. The platinum occurs 10 m to 40 m below the norite/pyroxenite contact.A 60 m wide zone of Light Sulfide Mineralization (LSM) of less than 1070 sulfides extends from the lower gabbronorites into the upper pyroxenites. In this LSM, four enriched zones carry up to 5% sulfides. The most widespread is termed the Main Sulfide Zone (MSZ), below which is No. 2, No.3 and No.4 Sulfide Zones. The MSZ carrying pyrite, pyrrhotite and chalcopyrite is a multielement ore with components of PGE (pt-Pd-Rh), nickel, copper and cobalt, and gold and silver.Extensive exploration programs have been carried out and the intention is to begin large-scale mining. However, with Russia supplying metals to the western markets, South Africa's cutback on production, and an end to the Cold War, delays have arisen."

Jan 1, 1994

By D. J. Bowen

"Abstract -The Great Dyke extends for 540 km along strike, to unknown depth, and varies in width from 3 km to 11 km. Rb/Sr age determinations gives values of approximately 2470 Ma.The Dyke consists of a variety of mafic and ultramafic rocks, many altered to serpentinites. These include, from top to bottom, successions of gabbro/norites, pyroxenites, peridotites/harzburgites, and dunites/picrites.The layers dip in from either margin, steepest at the edges (20°) and flattening toward the central sections. Four separate complexes are present. From north to south these are termed the Musengezi, Hartley, Selukwe and Wedza Complexes, and are described as 'boat-shaped' or 'pig-troughed'. All are similar in petrological sequences. Physiographically, the Dyke is spectacular in the north, where as a mountain range it meets the Zambezi Escarpment. Elsewhere in the central parts there is little surface expression and wide open treeless vleis. Dyke rocks cut through granite and schist belt terrain and are termed 'The Magnesia Belt'.Vast mineral resources exist. These include chrome, asbestos, platinoids, nickel, copper and gold. Up to eleven chrome seams numbered from top to bottom occur in the lower ultramafic sequences. Seams are narrow at 10 cm to 30 cm but of high grade. The platinum occurs 10 m to 40 m below the norite/pyroxenite contact.A 60 m wide zone of Light Sulfide Mineralization (LSM) of Jess than 1% sulfides extends from the lower gabbronorites into the upper pyroxenites. In this LSM, four enriched zones carry up to 5% sulfides. The most widespread is termed the Main Sulfide Zone (MSZ), below which is No. 2, No. 3 and No. 4 Sulfide Zones. The MSZ carrying pyrite, pyrrhotite and chalcopyrite is a multi­ element ore with components of PGE (Pt-Pd-Rh), nickel, copper and cobalt, and gold and silver.Extensive exploration programs have been carried out and the intention is to begin large-scale mining. However, with Russia supplying metals to the western markets, South Africa's cutback on production, and an end to the Cold War, delays have arisen."

Jan 1, 1994

By Leslie Carver

The effects of longwall mine subsidence on water resources were studied at a West Virginia coal mine (mine Z) by Carver (1994). Data were obtained for 137 domestic supply wells and springs and 12 baseflow streams. Subsidence caused short-term dewatering (of a few days to weeks) of wells located on lower hillslopes and valleys, and long-term dewatering of hillslope and hilltop springs (with no recovery yet). New or increased spring discharge was observed at lower elevations. Unsubsided water supplies experienced no dewatering beyond a nearby panel's 27°-38° angle of dewatering influence zone. Subsidence from longwall mining beneath streams commonly reduced discharge when panel ages were less than two to three years. However, "normal" discharge was typically observed over panels greater than three years in age; such streams exhibited lower baseflow recession constants, moderated winter baseflow, and increased summer baseflow compared to unsubsided streams.

Jan 1, 1994

By S. Flewelling, M. Scobie, G. R. Baiden

"SynopsisA feasibility study to develop a research program, the Mine Automation Plan (MAP), was recently completed. This was undertaken by a team comprised of Inco Ltd., Falconbridge Limited, the Canadian Centre for Automation and Robotics in Mining (CCARM) and the Centre for Resource Studies (CRS). The study was sponsored by PRECARN Associates, which is a consortium of thirty-six Canadian companies focussed on research and development in artificial intelligence and robotics. PRECARN Associates was formed in 1987 when a number of research proposals were funded in the fields of process control systems, robotics systems and intelligent engineering systems. In July 1991, PRECARN accepted the next round of proposals for research. The MAP project was one of the successful proposals, being awarded $100,000 for the development of a feasibility study defining a long-term R&D plan for underground hardrock mining automation.The development of the feasibility study started by addressing the fundamental structure of the mining process, and its relationship to the metallurgical process, over-all infrastructure support and management systems (Fig. I).Mining may be considered as comprising five subprocesses: (I) delineation; (2) development; (3) production; (4) backfilling; and (5) infrastructure support services. Within these subprocesses many applications for artificial intelligence and robotics exist. The mining process is dependent upon the interaction between the physical mining process and information. For example, the delineation process is dependent on geomechanical, geochemical and geophysical techniques to develop a model of the orebody based upon access to such data. This same relationship between the physical and information models holds true through the development, production, backfill and infrastructure support systems.The foundation for the MAP study has been the recent development by Inco Ltd. of an underground communications system (Fig. 2). The system has the ability to supply high bandwidth communications, over voice, data and video to mobile and stationary locations within the mining operation. It is seen to be the future backbone of a comprehensive, automated information system which should permit the application of the concept of Computer Integrated Manufacturing (CIM) to underground mining. CIM, through the automated flow of information, has been successful in integrating the engineering, production and various support groups in manufacturing."

Jan 1, 1994

By Yves C. Lizotte, Malcolm J. Scobie

Blast fragmentation is affected by the physical and mechanical characteristics of the rockmass as determined by geology as well as the explosive energy, the partition of this energy, the actual amount of energy transmitted to the rockmass, the blast geometry and the detonation sequence. This paper reviews studies of the influence of geology on blast fragmentation, particularly structure, i.e. the in situ or inherent fragmentation arising from rock discontinuities. Prior structural studies have mainly been limited to comparing equivalent diameters of the in situ blocks with the size distributions of the blasted material. No criteria exist to integrate structure into blast design. This paper reviews on-going studies of the blasted fragment shape and size observed in different rockmasses aimed at analyzing geological control over blasting. Digital photoanalysis was applied {o measure size and shape distributions, to correlate results with block size distributions and shape parameters of the inherent fragmentation. An integrated and comprehensive fragmentation assessment procedure which accounts for geological control is proposed. The potential of this research is to provide a greater understanding of the true contribution of explosives to fragmentation, the effects of fragment shape on system productivity and the reduction of blast-induced damage.

Jan 1, 1994

By W. J. Mahoney

A good quality assurance program at a coal mine or power plant is accurate, timely and consistent. The quality analysis is accurate due to a complete sampling of the coal stream loaded into the unit train. The sample analysis is accurate because standardized testing procedures are applied. Once an analysis is completed, the results must be communicated to the electric utility in a timely manner. The electric utility needs the results to better manage the coal inventory at its power plants. A quality assurance program can also help a mine deliver a consistent product to a utility's power plants. The importance of accuracy, timeliness and consistency are based on major changes that are taking place in the electric utility industry.

Jan 1, 1994

By Wouter Bleeker, Isabelle Cadieux

"Abstracts of theses related to mineral deposit studies and exploration, completed at geology or earth science departments of Canadian universities, have been compiled for the period 1991 to mid-I993. Part I, presented in the June, 1994 issue of the ClM Bulletin, gave a listing of thesis titles. Part II, which consists of edited abstracts of theses considered to be of direct application to mineral deposit studies and exploration, is presented under various themes as follows:A. Kimberlites, Other Alkaline Intrusions and Related Studies;B. Volcanogenic Massive Sulphide Deposits and Related Studies;C. Mineral Economics;D. Mesothermal Gold Deposits, Other Gold Deposits and Related Studies;E. Magmatic Nickel-Copper, Platinum Group Element, and Chromite Deposits and Miscellaneous Platinum Group-related Studies;F. Granite and Pegmatite-related Deposits and Porphyry Deposits;G. Diverse Hydrothermal Deposits. Sediment-hosted CopperDeposits and Mississippi Valley Type Lead-Zinc Deposits; andH. UranitnlHeiated studies, Evaporites and Exploration Geophysics.Abstracts related to themes A to D were presented in previous issues of the ClM Bulletin, abstracts related to themes E and F are presented in this issue. The remaining abstracts will be presented in a future issue."

Jan 1, 1994

By Y. Héroux, A. Chagnon, M. M. Savard

"Résumé- Le gîte de Pb-Zn de Gays River s'accompagne d'anomalies des propriétés de la matière organique (MO) et des assemblages de minéraux d'argile (AMA). L'association entre la minéralisation, la distribution de la réflectance de la MO et des AMA suggère que ces traceurs peuvent servir à l'exploration des sulfures de métaux de base dans cette région.A l'emplacement du gîte, la réflectance varie considérablement (0,80% à 1,88%), pouvant même afficher une baisse avec l'enfouissement, ce qui est interprété comme une altération chimique de la MO. Les valeurs les plus élevées s'accompagnent localement de quelques textures en mosaïque et délimitent une anomalie thermique au centre sud de la région. Parmi les minéraux des argiles identifiés, l'illite et la chlorite sont terrigènes alors que la smectite, la kaolinite et la corrensite sont authigènes et, à l'instar de l'altération de la MO, résultent des nouveaux équilibres chimiques créés suite à la précipitation des sulfures.Abstract- The Gays River Pb-Zn ore deposit is associated with anomalies defined from the characters of the organic matter (OM) and from the clay minerals assemblages. The relationships be­ tween these anomalies and the mineralization at the mine suggest that these parameters can be used as new guides for the exploration for base-metal sulfides in this area.The vitrinite reflectance (RJ shows a wide range of values (0.8% to 1.88%) and exhibits an anomalous suppressive effect with depth of burial at the mine site, suggesting a chemical alteration of the OM. The highest R, values are associated with mosaic textures and outline a thermal anomaly at the south-center of the studied area. Among the identified clay minerals, illite and chlorite are terrigenous, whereas smectite, kaolinite and corrensite are authigenous and, like the alteration of the OM, are due to the new chemical equilibria resulting from the precipitation of the sulfides."

Jan 1, 1994

By B. Misra, B. S: Sastry, Kollu S. Rao

"This paper reports the results of a finite element study of the geothermal heatflow into dry mine airways. For isotropic and unsteady state conditions the heatflow into mine airways is studied for a range of surface heat transfer coefficients between rock and air, and age of the airway. Dimensionless temperature gradient values are presented in tables for different values of Boit and Fourier numbers and the results are compared with Starfield tables and Gibson algorithm. It is found that Starfield tables have consistently over-predicted the G values with errors ranging from 2% to 10%. The differences between results obtained from the finite element study and the G values calculated from Gibson's approximation method are mapped. The small error values over a large range of Fourier and Biot numbers confirm the suitability of Gibson's algorithm to rapidly calculate G values for estimating the heat transfer from surrounding rock to mine air.IntroductionIn many underground mines heat is a major problem, and the provision of acceptable working conditions requires considerable expenditure on ventilation systems. The rational design and operation of these systems depend upon an understanding of the various sources of heat in the mine. The natural source, i.e. geothermal heat, contributes up to 80% of total heat added to mine air and it is difficult to analyze and predict the heat owing to a number of influencing variables. The problem of geothermal heat flow has been studied by many investigators (Goch, 1940; Starfield, 1966; Hemp, 1987; Amano et al., 1982; McPherson, 1986).The primary concern of this paper is to develop a better ready reference dimensionless transient temperature table for estimating heatflow at any stage of mine airway life."

Jan 1, 1994

By A. Probst, J. A. Finch

"Solids concentration (weight % solids) profiles and the clear liquid/slurry interface level (mud-line) were determined from conductivity measurements in thickeners at Falconbridge's Strathcona mill (Ni concentrate and non-mag thickeners) and Kidd Creek Division (Cu, Zn concentrates and final tails in the concentrator and a jarosite thickener in the Zn plant).The conductivity measurement system consisted of a probe 1.5 m in length with 23 electrode cells, a 24-channel relay, a conductivity meter and a computer. A conductivity profile is collected which locates the mud-line by a sharp change in conductivity. The conductivity measurements are readily converted to solids concentration profiles using a model due to Maxwell.The results from conductivity measurements were compared with direct measurements on local samples obtained using a modified Noranda sampler.It is concluded that the conductivity technique is applicable to locate the mud-line and to estimate the solids concentration profiles in thickeners. This on-line informnation could improve the operational efficiency of industrial thickeners."

Jan 1, 1994

By Peter K. Mathison

The U.S. Bureau of Mines has developed a hydrologic monitoring system for in situ leaching operations. This system records and displays flow and pressure information from sensors located in leachant injection and recovery wells. Continuous monitoring of hydrologic conditions is important during leaching operations because hydrologic factors such as aquifer permeability, solution injection rates, injection pressure, and solution recovery rates interact and change over time. This hydrologic monitoring system has been tested in an underground setting at the Cyprus Casa Grande copper mine. The system consists of hardware and computer software components and includes two Bureau-developed software applications. This publication describes the implementation of the hydrologic monitoring system and the software developed at the Bureau in support of in situ leaching research.

Jan 1, 1994

By R. J. Chase, C. Davies

"The Merelani graphite-tanzanite deposit is located in northeast Tanzania, 14 kilometers south of Kilimajaro International Airport and in close proximity to the towns of Moshi and Arusha. The graphite mineralization is hosted by relatively undeformed linear Proterozoic metasedimentary gneisses, several of which have been subjected to hydrothermal alteration resulting in tanzanite mineralization. Exploration work comprised detailed geological mapping coupled with pit and trench channel sampling and a subsequent 1500 meters of diamond drilling. In addition, metallurgical tests have shown the graphite to be of unusually coarse flake size, crystallinity and high purity.Feasability studies have shown the economic viability of a major coarse flake graphite deposit with the measured resource to 50 meters in excess of 9 million tonnes assaying over 85 graphitic carbon. Production is due to start by the end of the first quarter of 1994 with the processing plant design capacity initially set at 15 000 tonnes per annum.In addition to graphite production, tanzanite will be produced through selective mining within the graphite open pit in the upper horizon and from underground workings within the lower horizon.The Merelani graphite-tanzanite deposit will be the first major orebody to be exploited through means of private funding since Tanzania gained independence"

Jan 1, 1994

By William M. Hartzler

The Powder River Basin (PRB) refers to the coal deposits located in southeastern Montana and the northeastern Wyoming counties of Campbell, Converse, Hot Springs and Sheridian (Wyoming PRB). In 1993, there were 20 active surface mines with 3109 employees in the Wyoming PRB (Annual Report, The State Inspector Of Mines Of Wyoming, 1993). Early PRB production growth was primarily in response to the passage of the Clean Air Act of 1970. The disproportionate growth in Wyoming as compared to Montana can be attributed to the differing coal taxation policies of the two states. The state severance and production taxes were significantly lower in Wyoming. However, Montana passed legislation in 1987 reducing the severance tax rate, substantially narrowing the severance tax gap. Campbell and Converse counties in Wyoming have benefited the most from the production growth in the region. Cyprus Amax's Belle Ayr Mine, south of Gillette, in Campbell County, was the first modern commercial coal mine to be developed.

Jan 1, 1994

By Hamid Maleki

The U.S. Bureau of Mines implemented a monitoring program in a western U.S. coal mine for the evaluation of both conventional and alternative support systems. The conventional support consisted of 2.5-m-long vertical bolts installed in an 5.5-m-wide entry. The alternative system consisted of 2.5- and 3-m vertical and inclined bolts installed at a higher density during widening of a cut from 3.6 to 5.5 m. Roof deformation, roof stress, rib deformation, and bolt loads were monitored during the 2-month test period. In addition, roof failure patterns and lithology were characterized within the six-entry main test section. Results were analyzed using roof deformation and failure profiles, roof stress profiles. bolt loading and bending moment diagrams, and numerical models. The mechanics of roof deformation, failure, and support reaction in three zones in the mine roof were characterized. Significant improvements were shown in roof stability in the section using the alternative system. Results are encouraging and indicate the effectiveness of alternative support systems and excavation techniques for limiting inelastic deformation of roof in highly stressed underground mines.

Jan 1, 1994