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DCF Valuations are very important to individuals and companies involved in the mining industry. Such valuations are critical to investment decisions in relation to new and existing projects. In particular they provide fundamental information to shareholders in the event of a capital raising or takeover and to financiers supporting mining companies and projects. Also, DCF Valuations are often used to support asset carrying values in the financial statements of mining companies. This paper presents a Chartered Accountant's (CA's) perspective on the main issues to be considered in preparing, analysing and relying upon DCF methods in mineral valuations and provides some practical examples relating to key issues. The paper makes the important point that DCF methods involve making assumptions about future events and circumstances that inherently contain uncertainty which results in a valuation prepared on a DCF basis providing a range of values that are not perfect or accurate. In order that DCF valuations provide meaningful information the underlying methodology used and assumptions made must be consistent, sound and well supported. Credibility of those involved in preparing mineral valuations is vital and this paper supports the adoption of sound practices by all concerned.

Jan 1, 1994

By Grano S. R, Ralston J

It is the perennial problem most metallurgists face when examining data collected from laboratory float tests and plant surveys - there are more numbers than we know what to do with! The objective of this paper is to analyse and interpret a set

Jan 1, 1994

By S. Espley, G. Tan

"Inco's Little Stobie Mine is a low-grade nickel operation producing approximately 4()()() tons per day. Backfill has never been an economical option at the mine; therefore, the only viable type of mining in the upper zones has been by sub-level cave. This mining method allows for the draw-down of a rock cover into the empty stopes to provide stability to the over-all rock mass. In the lower areas of the mine, bulk blasthole mining methods have taken place, without rock fill, resulting in extremely large open stopes. As the mine reaches its final stage of recovery, it is inevitable that the hangingwall of the large voids will undergo tensile failure via spoiling.This paper deals with the collaborating efforts of Inco's Rock Mechanics group and the Little Stobie mining operations toward the successful recovery of the ore zone remnants such that the inevitable failure, and time of failure, of the rock mass is ""controlled"". Within the mining scheme, several key requirements had to be met to satisfy the operations: (1) production rates; (2) good blast fragmentation; and (3) secure pulling-horizons. A full-scale rock mechanics study was carried out involving: numerical modelling studies; pulling ellipse analyses; blast design, monitoring and analyses; laser profiling; and time domain rej7ectometry (TDR) instrumentation. The final recovery scheme, employing a controlled failure, involves recommendations on: (1) blasting techniques; (2) support systems; (3) mining sequences and scenarios; and (4) monitoring systems."

Jan 1, 1994

By Steven Townend, Don Wadden

In today's global economy the need to stay competitive is essential for commercial survival and growth. To this end Inco is committed to continuous improvement in its operations. Various aspects of the mining process have been examined to find ways of improvement.

Jan 1, 1994

By J. S. Stachulak

"The main ventilation design features adopted at Inco to safeguard personnel against the effects of fires are described in this paper. Measures taken to prevent and detect fires due to spontaneous combustion, and fires involving conveyor belts, are described in detail.IntroductionConsidering the over-all picture of present-day mining operations, the expenditure required to provide a proper system of mine ventilation and fife control should be regarded as a sound investment that will pay back in increased mining efficiency, improved safety, health, and morale of the miners.Mine ventilation control and mine fife detection and fighting are inseparable, because a ventilation system can spread deadly products of combustion just as efficiently as it does life-sustaining oxygen. Therefore, the possibility of a mine fife occurring is of particular concern.The first objective is to prevent a fife.The second objective is to design the ventilation system so that a positive fresh air supply can be ensured on each main level regardless of the location of the fife.The third objective is to be able to detect the fife at an early stage and to extinguish it before it can develop into a major fife. Accordingly, at Inco, very extensive measures are taken to prevent fires and to locate, isolate and extinguish them rapidly. To obtain an early warning, it is not sufficient to know that a fife has started, but it is also necessary to know where the fife is burning."

Jan 1, 1994

By Dave M. Jakelski, Gerhard W. Heinrich, Peter F. Wells, Daniel F. Suarez, Jamie B. Beauchamp

"A need for increased copper concentrate production and for less nickel contamination in that concentrate at Falconbridge's Strathcona Concentrator during 1993 required the installation of a third flotation column and improvements in the operation of the existing circuit. Innovations in wash water distributor and launder design were fundamental in achieving objectives on a new 3 meter diameter column. Minnovex plug-type spargers were tested on a 2.1 meter diameter column in order to reduce maintenance requirements. The paper details the measures taken to enhance column flotation circuit performance and the results obtained.IntroductionFalconbridge's Strathcona Mill receives 10% of the ore feed from a rich copper zone in the Strathcona mine. This ore typically grades 7% copper and 1 % nickel and, because of its high copper content, it is processed in a separate circuit ('C' circuit) which consists of conventional grinding, rougher flotation with the concentrate being treated with lime to pH 12.3 and cyanide followed by column flotation. The columns are operated with mechanical flotation scavengers and the scavenger concentrate is returned to the column feed. Testwork conducted in 1991 showed that the original flotation column (Column 2) could only produce 5.5 mtph of concentrate with less than 0.5% nickel (Figure 1).Between 1991 and spring of 1993, production was increased at times by open circuiting the scavengers. Metallurgical improvements were obtained by improving the wash water distributor of Column 2 and by wash water sprays in conventional cells (1 ). However, the scavenger concentrate assayed 0. 7 -0.8% nickel and was not acceptable for long term operation. When Copper ore production targets were significantly increased for 1993, it became clear that an additional flotation column was required. The new flowsheet employs mechanical scavenger cells on the column tails as in Column 2 circuit (Figure 2). A -parallel configuration was chosen as pulp solids fraction has been shown to be a critical variable and the second column in series would receive a lower density feed."

Jan 1, 1994

By Jerry L. Smith

Industry on a whole has not been very receptive to government prodding to implement waste minimization programs. Waste minimization has the appearance of substantial benefits, however, there are underlying difficulties and suspicions that need to be addressed before industry will support pollution prevention initiatives. They can be summarized as follows: - Human behavior resists change, uncertainty, and unknowns. - New waste minimization techniques are difficult to find and research. - Calculating the true cost of present waste practices as well as new techniques being considered is difficult and time consuming. - Getting a consensus opinion of all the individuals affected on the course or technique to be employed in a pollution prevention program. New software products have addressed many of the problems associated with implementing pollution prevention programs: They contain research on a large number of pollution prevention techniques and case studies; they generally are accessed by EPA ID number, chemical name, or synonym; and some programs have the option to print a comprehensive written user-specific pollution prevention program.

Jan 1, 1994

By C. J. Newman, R. J. St. Eloi, G. Macfarlane

"The Kidd Creek copper smelter has been expanded from its original design of59000 tonnes of copper per year to over 120 000 tonnes per year. Modifications to the process gas handling system and acid plant have been made to accommodate this higher production rate and, generally, to optimize the operation.The gas handling system associated with the continuous smelting process is discussed in terms of boiler accretions and modifications to minimize their impact on operations; design changes to effect reductions in high pressure drop duct configurations; material changes to overcome corrosion and plant additions to improve gas cleaning capability. The acid plant is reviewed with references to changes made to accommodate the increased S02 gas strength resulting from the higher smelting rates. IntroductionThe Kidd Creek Division of Falconbridge Limited is a base-metal mining and metallurgical complex located in Timmins, Ontario. The discovery of the original copper-zinc-silver orebody was announced in April 1964. Mining operations began in 1966 with a 9000 tonnes per day (t/d) concentrator corning on stream in November of that year. In April 1972, a 108 000 tonnes per year zinc plant was conunissioned. Over the years the facilities have been expanded, such that the concentrator now has the capacity to process 13 000 t/d of ore. To expand zinc production, the world's second installation of the Commco/Sherritt pressure leaching facility was completed in 1983 to bring total zinc production capacity to 136 000 tonnes per year. In 1973, serious planning for a smelter operation began. In early 1975, after studying both continuous smelting and flash smelting processes, a decision was made to proceed with the technology offered by Mitsubishi Metal Corporation of Japan. The Mitsubishi Continuous Smelting Process was to be used for the smelter and the Onahama No. 3 tankhouse technology for the copper refinery."

Jan 1, 1994

By André L. B. Bittencourt

The copper content in the waste slag represents the greatest loss in the process of Caraíba Metais' Smelter. By identifying the variables responsible for copper stabilization in the slag, a minimization on these losses is expected, producing a granulated waste slag with a copper content lower than 0.7%. Statistics resourses such as control charts, Pareto's diagram and correlations curves were applied for the data obtained in the first semester of 1992. The magnetite and the calcium oxide contents in the slag of the Flash Smelter Furnace were most prominent variables. Some operational changes introduced during and after this investigation have shown good results.

Jan 1, 1994

By Mizuta T, Sakurai M

The Pine Creek Inlier produced 12 440 kg of gold in the period from the first gold discovery in the 1860s to the early-1900s. During the 1930s renewed large-scale prospecting took place and gave a foothold for today's gold mining operations. The rise of the gold price and improved mining methods in the 1970s and 1980s made possible low cost, bulk low grade mining operations. Various gold deposits including vein, network and stratiform types occur in the Pine Creek Inlier (Nicholson and Eupene, 1990). The Tom's Gully deposit is located 100 km south-east of Darwin in the Northern Territory. It is hosted in the early Proterozoic Wildman Siltstone and lies north-east of 1800 my old Mt Bundey Pluton (Figure 1). Around the Mt Bundey Pluton, there are several prospective base and precious metal deposits such as Quest 29. The Tom's Gully gold deposit was discovered in 1986 and yielded a total of 3070 kg of gold from ore averaging 9.35 g/t gold between 1987 and 1990 when the mining operation was terminated.

Jan 1, 1994

By G Neely

COPING WITH COMPLEXITY In every industry, and mining is no exception, plant and processes increase in complexity over time and managers and operators need correspondingly more knowledge. The mine manager has to delegate details to operators, engineers, metallurgists, accountants, safety specialists, personnel officers and the rest. Is it reasonable then, to expect the Mines Inspector to be competent to judge the conduct of all these operations against the criterion of the regulations? Obviously not, but what are the alternatives? One is a superficial inspection where the inspector goes on a hazard hunt for broken steps and missing handrails. Another is one in which an army of specialist inspectors marches on a mine, sometimes outnumbering the staff. Each is competent to assess some part of the operation and if he or she can find an opposite number among the mine staff, they can discuss details. But what good does it achieve? The system acts to remedy present defects and to make recommendations which, if only they were followed, would prevent the same things happening again. Given that this process has been going on since the first Factory Act of about 1840, how is it that there are any more defects left to put right? The answer of course is that defects keep appearing, and new defects arise as fast as the old ones are found and corrected. Further progress can only be made by preventing defects at their source.

Jan 1, 1994

By Lloyd Buckingham

"The operating cost of a gold mine employing granular activated carbon to recover gold can be greatly affected by the condition of in-circuit carbon and its attrition losses. To accurately identify and quantify carbon losses requires careful study. Carbon attrition in the mill can be attributed mainly to physical or mechanical breakage due to the transfer of carbon in the circuit and to carbon oxidation and thermal fracture occurring in the carbon reactivation kiln. Of the equipment involved in carbon transfer, the water powered eductors are the major cause of abrasion and should be replaced with pumps or alternate methods that can serve the purpose. This paper also reviews the impact of carbon stripping and washing on overall operations.IntroductionHolt-McDermott Mine operates a 1360 tonnes per day Carbon-in-Leach (CIL) mill to recover gold. The relatively high carbon consumption and high remaining gold values on carbon after stripping were viewed as a challenging project for research. Extensive metallurgical testwork was initiated to reduce these values. Figure 1 below indicates the carbon flowchart prior to any significant changes in the carbon handling procedures.Carbon consumption after commissioning which was as high as 10""/o of carbon eluted, has been brought down to less than 5%. Changes that brought about this 50% reduction in carbon consumption are:1 ) Improvements in kiln operation2) Elimination or replacement of eductors3) Reduction in tonnes of carbon eluted"

Jan 1, 1994

By Douglas R. Simms

O & G Industries, Inc. owns and operates a number of rock quarries within the State of Connecticut. These rock quarries are surrounded by residences and commercial neighbors who have concerns related to blasting. In addition, local commissions which issue the mining permits to O & G are required to hold public hearings, prior to issuing the annual permits each year.

Jan 1, 1994

By Glen Robertson, Jeff McLaughlin

"The Clarabelle Mill rock tailings have the potential to generate sulphuric acid through chemical and biological oxidation of sulphide minerals. Current rock tailings assay between 0.80 -1.40 %S, with sulphur occurring principally as coarse pyrrhotite. Acid generation within the tailings area can be substantially reduced by segregating pyrrhotite rich tailings in a submerged storage area and by depositing only low sulphur rock tailings in exposed areas. Laboratory tests confirmed that low sulphur tailings could be produced by flotation at reduced pH with a small xanthate addition. A plant test was conducted to evaluate the production of low sulphur tailings in conjunction with INCO's continuing commitment to environmental protection and progressive decommissioning of the metallurgical site.During the plant evaluation, approximately 5% of the mill rock tailings were reprocessed in a line of 100 tt3 Denver flotation cells. Tailing grades below 0.40% S were easily achieved through operation at pH 6 -7, with xanthate addition (dosages up to 0.02 lb/ton) and 10 -15 minutes of nominal retention time. Froth depths between 1 -3 inches combined with relatively liberal amounts of frother were required to pull the lightly mineralized froth into the concentrate which averaged 11% sulphur and less than 5% mass recovery. In addition, three field lysimeters were each filled with two hundred.ton bulk samples of low sulphur tails (0.35% S), standard rock tailings (0.98% S), and mill total tailings (2.30% S) for long term monitoring. The implications for full scale plant design, tailings area decommissioning, the possibility of increased nickel recovery and preliminary field lysimeter data are discussed."

Jan 1, 1994

By John C. Brulia

The IME member companies, the ISEE along with its chapter organizations, the Federal, state and municipal regulatory agencies, and the industry consultants and suppliers have developed safety equipment, provided safety guidelines, promulgated safety-oriented regulations, and conducted safety training for blasting personnel in an effort to reduce explosives-related accidents.

Jan 1, 1994

Getting it right is a very profitable outcome. Shareholders would ideally like to see their directors get it right all the time on the major economic decisions. But it is very difficult for mining directors to get it right all the time in such an uncertain environment. Primary decision-makers of companies with significant stakes in the mining industry should get it right much more frequently. The legal measures of evidence (beyond reasonable doubt and on the balance of probabilities) can be used to determine whether grade estimates (a key revenue variable) are realistic. The application of this approach can be far reaching. More frequently correct decision-making would result in more effective allocation of limited resources (capital and labour). In turn, this would result in higher financial returns and a more extensive mining industry.

Jan 1, 1994

By Michael Harley, E. Guy Charleworth

"Bedding-parallel thrust-hosted gold veins are developed in the Sabie-Pilgrim's Rest goldfield, eastern Transvaal, South Africa. The reefs display a complex history characterized by temporally and spatially overlapping events of similar mineralization and deformation. Recognition of the episodic reactivation of these low angle (5° to 10°) thrust faults implicates high fluid pressures (equalling or exceeding lithostatic pressures). Geochemical constraints limit the amount of fluid-rock interaction and the occurrence of transgressive mineralization within the Archaean granitoid basement suggests that the high pressure fluids originated at depth beneath the Transvaal Basin.Similarities exist between gold deposits of Sabie-Pilgrim's Rest and Telfer, Western Australia as well as Passagem de Mariana, Minas Gerais, Brazil. All deposits are sub-parallel to the enclosing bedding which is shallowly inclined. Furthermore, they are also hosted by contractional deformational structures and are clearly epigenetic in origin."

Jan 1, 1994

By J. S. Wozek

In metallurgical applications, coal fulfills dual roles as a chemical feed stock and as a fuel source. These applications range from cokemaking, ironrnaking (including pulverized coal injection), foundry, basic oxygen furnace / electric arc furnace coal additions, direct ironrnaking, Corex, and the futuristic direct steelmaking. In all steelmaking related processes, chemical reactions are simultaneously temperature and chemical dependent. Therefore, coals used in these processes must consistently comply with specific quality parameters in order to promote efficient operations. This paper limits discussion of Metallurgical Coal Quality to cokemaking and ironmaking applications. Its purpose is to present the customer's perspective on the control of critical coal and coke properties.

Jan 1, 1994

By M. J. Virnig, G. A. Kordosky

Throughout time, the mining industry has been very successful in meeting the world's requirements for metals and materials while meeting the challenges of decreasing ore grades and increased emphasis on protection of the environment. This success has been due to the development and implementation of new technologies. A clear example of such a development over the past 25 years is the increasing use of leaching/solvent extraction/electrowinning for the recovery of copper from oxide and sulfide ores. The key to the successful introduction of this technology was the discovery and development of the hydroxyoxime liquid ion exchange reagents by General Mills Chemicals (now Henkel Corporation). An important role was also played by the close working relationships between General Mills Chemicals and Ranchers Exploration which resulted in startup of the first plant in 1968 and between General Mills Chemicals and Bagdad Copper which resulted in the startup of the second copper SX-EW plant in August of 1970. Following on the heels of the hydroxyoxime development came the commercialization of other new chelating reagents based on different chemical functionalities, i.e., beta-diketones, alkylated 8- hydroxyquinolines and sulfonamidoquinolines. This initial spurt of activity was then followed by a slowing of development in terms of new reagent functionalities. Activity has continued in terms of further optimization/improvement of existing reagent functionalities but the commercialization of new reagent functionalities has slackened. This observation reflects the fact that the development of new reagent functionalities for metal recovery has become increasingly more expensive such that the right combination of price and sales volume must exist in order to justify the investment required to bring a new reagent to the market place. Given the dependence of the mining industry on innovation to meet the needs of the future, one can ask how these new developments, particularly in new reagents, will occur. To arrive at an estimate of the costs involved in commercializing a new metal extractant functionality, particularly a chelating type functionality, a case study of the development of LIX ®* 34

Jan 1, 1994

Professor G.T. van Rooyen has guided the Department of Materials Science and Metallurgical Engineering at the University of Pretoria in South Africa for the past 32 years. During this period, 54 masters' degrees have been awarded in the Department, and 17 doctorandi promoted. He has also made a major contribution to industry by his incisive analysis, relevant and practical synthesis, and his exceptional talent in innovative design. He is still active in fracture analysis, thermal fatigue, weld simulation transformation kinetics, and fracture mechanics, and continues to contribute to a better understanding of metallurgical problems encountered in practice. He has advised many companies, and has received many honours and recognitions.

Jan 1, 1994