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By Neil D. Donnell, O&apos

Ore reserve estimation at the Syncrude Canada Ltd. open-pit oil sands mine in Northern Alberta has evolved since the project's inception. Early techniques followed a conventional petroleum reservoir analysis format, with relatively widely-spaced drill holes and semiquantitative grade data. Experience has developed a more standard mining approach, including classification of geological materials by both lithology and sedimentary origin, timely and multi-purpose drill holes, precise analytical data, empirical recovery factors, a computerized geological data base, and an ore body block model. Future efforts will involve enhancement of existing techniques, use of geostatistical algorithms, quantification of confidence limits, and improved control of the ore model by geological parameters.

Jan 1, 1985

Safe operation and system integrity are two important properties of a mine hoist electrical system. Previous methods used to assess these systems, though rare, have involved extensive downtime and required skilled personnel. The recommended design considerations presented in this report are for a proposed automated system that will perform real time measurements, calculations, and recordings of pertinent performance data. Included are equipment installation and test procedures to be used with the system. The report also contains descriptions of the hoist performance criteria, and how they are to be collected.

Jan 1, 1985

By L. G. Austin

The model originally proposed by Austin, et al., has been modified in the light of further investigation of the breakage laws in SAG milling. The model uses a fully-mixed reactor for short L/D mills and calculates the breakage of small particles by the nipping action of balls and pebbles. The autogenous self-breakage of larger lumps is treated as an effective means of fast breaking rock and much slower breaking rock. Experiments show that fast autogenous breakage can be treated as a first-order breakage with an overall specific breakage rate which incorporates fracture and chipping. Similarly, slow breakage incorporates fracture and abrasion. Autogenous breakage is cushioned by the accumulation of fine material. Simulation results are compared to results from tests in a 2 m diameter continuous pilot-scale SAG mill. Future work is discussed.

Jan 1, 1985

By R. D. Brown

There are techniques for separating aluminum alloys from mixed scrap, but there are no efficient ways to separate wrought aluminum from cast aluminum. This Bureau of Mines report describes a novel technique for separating mixed aluminum alloy scrap into cast and wrought aluminum alloy fractions. The technique, which uses conventional heating, fragmentizing, and screening equipment, exploits differences in the mechanical properties of cast and wrought aluminum alloys at elevated temperatures. The cast alloys become brittle at high temperatures owing to intergranular melting of regions of eutectic composition. This melting begins to occur as the solidus temperature for each alloy is reached. Solidus temperatures for casting alloys generally range from 520° to 580° C, but are above 600° C for most wrought alloys. Thus, the casting alloys are easily fragmented while the wrought alloys remain ductile in the proper temperature range. Starting with a mixture containing approximately 80 pct cast and 20 pct wrought alloys, fractions of 100 pct cast and 98 pct wrought have been produced.

Jan 1, 1985

By Hans W. Schreiber

INTRODUCTION At the end of the day, the decision by the sponsor to proceed with a project and to seek financing, or the decision by the financier to grant financing are made on a judgmental basis. Cash flow projections, sensitivity and risk analysis, the innumerable ratios applied by the financier, the so-called feasibility study, etc. are all only tools, and the degree to which they affect decisions is as highly varied as are the personality differences and business conduct and outlooks of the persons who render the decision of "go or no-go". The independent consultant, then, is expected to provide an additional increment of credulity and/or reliability to the "tools" which others will use in reaching a decision; the consultant is really not in a position to directly recommend a "go or no-go". PROJECT FINANCE INGREDIENTS The project finance situation has basically three ingredients: - The project; - The inherent risks attendant with project failure; - The parties. The project, to be viable for financing, will have certain essential characteristics, namely: 1. Clear title or rights to the mineral; 2. Proven definition/establishment of mineral quantity; 3. Financial viability; 4. Physical access consistent with financial viability; 5. A market for the product at a price and for the quantity consistent with financial viability; 6. Transportation/shipping from the project facility to the market at a cost consistent with financial viability; 7. Availability and demonstrated expertise of the developer of the facility; 8. Demonstrated expertise of the operator of the facility; 9. Production processes do not involve unproven new technology; 10. Availability of management personnel; 11. The property and the facilities have value (and thus can be used as collateral); 12. Government approvals/support, as required, will have been obtained; 13. The political environment is essentially friendly and stable; 14. The owner(s) of the project have the financial, strength to make equity contributions consistent with total required investment capital and project risk; 15. Backing by credit support other than that of the financier (i.e. guarantees); The inherent risks of failure are (Nevitt, 2nd Edition); 1. Completion delays with consequent delays in the generation of revenue 2. Cost overruns 3. Technical failure 4. Financial failure of contractors 5. Government interference 6. Uninsured losses 7. Increased price or shortages of raw materials, supplies 8. Technical obsolescence 9. Loss of competitive position in the market place 10. Expropriation 11. Inadequate/poor management The parties directly or indirectly integral to the project financing are: - The mineral rights owner - The developer - The operator - The equity investor

Jan 1, 1985

By J. G. Asbury

Broadly conceived, the demand for electricity depends upon three sets of variables: (i) the growths of the many individual demands for energy services; (ii) the competitiveness of electrically driven technologies in meeting these demands; and (iii) the energy-conversion efficiencies of installed electrical technologies. The first set of variables establishes the size of the potential market; the second, the market penetration of electrical equipment; and the third, the quantity of electricity required to operate the equipment. All forecasts of electricity consumption ultimately depend upon inferred or assumed relationships to describe the future behavior of these variables. This partitioning of the demand-forecasting problem is conceptually useful and will guide the discussion presented in this paper. However, it is also something of an oversimplification. Examined in more detail, the electricity fore-casting problem is exceedingly complex. The variables mentioned above are, in turn, found to depend upon more fundamental sets of demographic technological, resource, and policy variables. The demand projections developed by the major forecasting services are usually developed in terms of these underlying variables, which themselves must be independently forecast.

Jan 1, 1985

By G. Shore

Radiation grafted structures my be fabricated to contain ion exchange groups selective to an ion complex. Proper choice of substrate and monomer will provide selective ion exchange with differing physico and chemical properties. Grafting a selected monomer to the proper polymer will provide selective ion exchange with assured chemical protection of the substrate. Ion exchange systems utilizing radiation grafted structures have been fabricated to ''capture'' gold, silver and palladium from dilute solutions. Other ion exchange systems can feasibly be produced to remove other precious metals. Rotating Cathode Technology is used to recover the metals from their regenerating solutions are pure metal foil.

Jan 1, 1985

By D. Malhotra

Most primary-molybdenite producers use a selective-flotation process in which molybdenite is floated from the ore while other sulfide and non-sulfide gangue minerals are depressed in the same step (Figure 1). The process was developed at the Climax mill. Reagents used in the rougher-flotation stage include vapor oil (collector), syntex (surfactant), pine oil (frother) and occasionally sodium cyanide and Nokes reagent (depressant). Rougher concentrate is upgraded by cleaner flotation to produce market-grade molybdenite concentrates. Reagents used in the cleaner flotation stage are Dowfroth 250, vapor oil, sodium cyanide and Nokes reagent. The development of the flotation reagent scheme at Climax and the role of the reagents have been well described by Born, et al, (1976) and Malhotra, et al, (1976, 1977a, 1977b, 1977c, 1980). The hydrocarbon collector, vapor oil, accounts for approximately 50 percent of the total molybdenite-flotation reagent cost. Because vapor oil sources are limited, and the cost of vapor oil has increased significantly over the last decade, several studies have been done to evaluate alternate oil-based collectors and/or blends of collectors which would produce similar metallurgical results at a reduced cost, or increase the overall molybdenite recovery at the same cost (Smit and Bhasin, 1983; Hahn, 1969; Smith and Bhappu, 1971). The approach taken in the present study was to evaluate alternate non-oil based collectors and collector systems that are less expensive than vapor oil.

Jan 1, 1985

The Bureau of Mines evaluated short-delay coal mine detonators manu-factured by three domestic companies for electrostatic sensitivity, strength, and no-fire current level. Electrostatic sensitivity was studied in pin-to-pin and pin-to-case modes employing lO-kV potential. Strength of detonation was measured in the Bureau's underwater test fa-cility. No-fire current was measured using a constant-current power supply unit. Test procedures and experimental data are included.

Jan 1, 1985

By Ellsworth R. Spencer

A lightweight fiberglass feed leg for hand-held pneumatic percussion rock drills has been fabricated and tested by the Bureau of Mines. Its lighter weight facilitates easier handling of the rock drill apparatus, thereby reducing the potential for back injury to the driller and in- creasing drilling productivity. Current hand-held feed leg drills of the same class are 50 pct heavier than the Bureau-devised feed leg drill, which is comprised of a reduced-noise drill and the fiberglass feed leg. In-mine tests of the fiberglass leg showed that its performance and cost are comparable to those of standard aluminum feed legs.

Jan 1, 1985

By John C. Robison

INTRODUCTION Sensitivity analysis is a means of gauging the impact of individual risks on a financing. Key risks can occur in three time periods: - Feasibility, engineering and construction phase; - Start up phase (usually through completion); - Operating phase (post completion). If a company has agreed to cover these risks prior to completion, then less attention will be paid to the sensitivity of the project in the first two time periods. Since the operating phase of the project generates cash for both operations and debt service and generally does not begin until two to six years after the loan is signed, it is wise to look at scenarios other than the projected "base-case" scenario in order to determine the project's capability to operate successfully under a broad range of probable future events. Lenders are compensated at a fixed spread over their borrowing base and generally are not compensated if the project is successful beyond expectation. They are also subject to the loss of principal plus funding costs if the project performs below expectation. Because of this, lenders establish sensitivities around the parameters of conservative projections developed in the project feasibility studies and the cash flows resulting from these projections. The initial cash flow projections should demonstrate the project's ability to meet cash costs, debt service requirements (principal and interest), and still have sufficient cushion to cover contingencies such as strikes, price fluctuations, force majeur situations, etc. (See Schreiber, Chapter 10). The selection of the level of sensitivity analysis to be performed is the result of both objective criteria, including probabilistic analysis applied to the technical parameters, and, of equal importance, subjective criteria applied by the analysts, especially with regard to the economic and financial parameters impacting the project cash flows. RISK SENSITIVITY Assumptions used in the cash flow projections should be realistic. Risks identified by the lenders should be identified and cash flows prepared to assess whether these project risks are acceptable. Typical project risks include the following (see also Chapter 9): - Sufficient reserves - quantity and quality - Product price - Production level - Operating costs - Availability of energy and supplies - Transportation and infrastructure requirements and costs - Interest rate - Completion risks - Tax level - Political risks - Cost over-run risks - Operator experience - Management - Technological risks - Environmental permits and risks - Foreign exchange risks - Insurance coverage - Equity of sponsors - Inflation rate - Capital expenditure during project life In order to see the effect on the cash flow projections, each risk should be analyzed for its impact on the cash flow generating capacity of the project. Sensitivities can be examined to see if the resultant cash flow projection will meet the lenders minimum credit standards. 1.Reserve Sensitivity In general, lenders will not assume the reserve risk. However, it should also be noted that lenders receive loan proposals in which reserves range anywhere from proven to possible. Sensitivities are not generally run for various reserve levels and reserve estimates are either considered acceptable or not acceptable by the lenders.

Jan 1, 1985

By J. George Gregr

"This paper gives a brief review of grinding mills installation procedures with special emphasis on future maintenance. The importance of cooperation between the customer, construction contractor and manufacturer's representative is discussed, as well as the imparlance of complying with standards, specifications and the keeping comprehensive installation records.Fundamentals of mill maintenance are explained with the aim being to maximize the equipment availability and to minimize unscheduled downtime. The paper also includes development of wear items design, based on operating conditions, drive components and bearings, and how to keep large gears healthy thus eliminating surprise failures.Experience with installation of a large gear on a 34-foot diameter mill in Lornex and successful application of a computer program for the gear alignment on the mill are given.IntroductionSuccessful operation of a concentrator begins with the engineering of the project and continues through selecting the right equipment, its installation , start-up period, and ends with final tuning of the process. machinery and the human factor into an efficient and viable industrial complex.The following is a brief review of grinding mill installation procedures with special emphasis on future maintenance. Fundamentals of mill maintenance are discussed with the aim being to maximize the equipment availability and to minimize unscheduled downtime, with some specific points on key grinding mill components such as bearings and drives.Finally, the experience is recounted with the installation of a large ring gear on a 34-foot diameter mill at Lornex, and the successful application of a computer program for the gear alignment on the mill."

Jan 1, 1985

By Robert J. Willard

This chapter includes tables from 1983 that were not available in time for publication of the 1983 Minerals Yearbook, but does not include corresponding tables for 1984. The value of raw nonfuel minerals produced in the United States during 1984 was estimated at $23.2 billion, an increase of $2.1 billion over the value for 1983. This is the second consecutive year that the value has increased, and except for a decrease in 1982, the value for each year has increased since 1971, or 12 out of 13 years. In 1984, 16 out of 21 metal commodities increased in output while 5 metals decreased; 14 metals increased in value and 7 decreased. Of 46 nonmetal commodities. 37 increased in output while 7 decreased and 2 remained unchanged; 35 nonmetals increased in value and 11 decreased. These statistics are grounds for continuing the cautious economic optimism expressed in 1983. Despite the note of optimism, however, numerous problems plague the mining industry, weakening its stability and inhibiting its growth potential. The problems are a complex mix of international and domestic factors that have been building in the recent past, but have become even more troublesome in 1984.

Jan 1, 1985

By J. D. Miller

Pilot-scale tests indicate that effec¬tive concentration of fine gold from Colorado River sands can be achieved by flotation with the air-sparged hydrocyclone. The fine sands (55% minus 400 mesh and 0.01 opt*) from gravity concen¬tration were processed with a 5-cm air-sparged hydrocyclone (capacity -1.0 tph dry solids). Concentrate grades as high as 5.0 opt were produced in a single stage at a recovery of 75.0%. The separation efficiency was significantly better than that achieved in conventional batch flotation experiments.

Jan 1, 1985

By L. Adler

A fairly complex analysis is required to select or evaluate a piece of excavating and bulk handling equipment for its performance. At present, there is little agreement as to what points should be considered, and even less on what procedure to follow. This paper provides both of these in a consistent and direct form. The analysis applies to all types and sizes of equipment. The importance of the equipment characteristics, job activities, and work conditions are stressed. Separate analytical stems are established in a flow chart for these. They are combined using suitability tests in: problem statement; natural conditions; suitability guidelines; appropriate equipment types; operational activities; encumbered space; geometric design; equipment sizing; failure and limits; performance and consumption; public policy checks; and costs and profitability. Public policy and economics receive emphasis towards the end. The procedure is iterative, containing distinct feedback loops. Specifying the steps and sequence provides a necessary structure which has long been overdue.

Jan 1, 1985

By O. Tranbarger

In aging tunnels, wall and roof deterioration can eventually result in defects that must be detected and repaired to maintain safe structural conditions. In investigating tunnel defect conditions, a specialized FM radar system was developed with a programmable VHF and UHF operating sweep range for optimizing the penetration and measurement capabilities. The new FM radar technology was tested in two aging brick-lined tunnels in New York City. Test results showed that FM radar signals could penetrate eight courses of water-saturated brick and that the original steel liner outside the tunnel walls was intact.

Jan 1, 1985

By Yosry Attia

Recent emphasis on environmental effects and costs of conventional mining processing, plus success in accelerating bacterial action, suggest that biotechnology be explored for gold ore processing. In our paper, the past experience with organisms in processing gold is reviewed. The use of microorganisms for liberation of gold from sulfide ores as a substitute for fine grinding is discussed. The possibility of accumulation of gold from solutions, such as cyanide solutions, is explored as a potential replacement for such processes, such as carbon-in-pulp or ion exchange. The improvement in engineering technology and kinetics needed to scale-up from laboratory experiments to production scale are outlined.

Jan 1, 1985

By Ward E. Kilby, Bruce I. Mcclymont

"Data from the South Fork Pit Area of the Bullmoose deposit in northeastern British Columbia are used to demonstrate the usefulness of microcomputers to the on-site geologist. The technique utilizes a series of digital surf aces in the form of a network of points to define various geologic parameters such as seam positions, topography and coal quality characteristics. Manual digitizing, kriging and combinations of these techniques are used to calculate these digital surfaces, the best method depending upon the type and quality of the data in question. Digital surfaces, each modelling a specific feature when combined and manipulated with the computer form a powerful tool, the deposit model. The resultant model, containing all the surfaces, is used to examine seam and inter-seam thicknesses, deposit volumetrics, seam quality characteristics and the adequacy of sampling.IntroductionCoal deposit modelling using computer-based techniques has become routine. However, a geologist working in the field, without access to mainframe or minicomputer, ha s considerable difficulty implementing these procedures. However, microcomputers, which are portable and inexpensive can handle exploration data, perform various geological analyses, and produce deposit models virtually at the same time as the data is being collected. For the on-site geologist this means that quick access to the results of such modelling could point out inadequacies in deposit definition and trends in coal quality deserving investigation."

Jan 1, 1985

By Mark S. Sanders

This report discusses the development and testing of prototype gloves for underground mining work. An analysis of HSAC hand-finger injuries revealed three high-risk jobs: laborer, mechanic, and roof bolter. Laboratory tests of dexterity and protection were performed using six off-the-shelf gloves. Two prototype gloves were developed. Both were Kevlar-cotton blend knit gloves. One had polyvinyl "Ks" screened on the palm and fingers, and a hand pad sewn into the palm. The other prototype had the palm and fingers coated with a sol id layer of polyvinyl and had no hand pad. Field tests revealed that the solid-coated gloves were preferred by workers, but that the polyvinyl melted when working with hot drill steels.

Jan 1, 1985

This Bureau of Mines investigation addressed two primary issues of air velocity measurement in mines: the determination and use of correction factors, and the development of guidelines for the selection of a suitable site at which the measurements should be taken. Other facets of the investigation included a comparison of measurement methods and devices, and aircourse cross-sectional area measurement. The study consisted of theoretical, laboratory, and in-mine investigations. The measurement devices included in the experimental phase were vane anemometer, vortex shedding anemometer, a prototype thermoan-emometer, smoke tube, and oil of wintergreen sprayer. The measurement methods included single-point centerline, timed-point traverse, continuous traverse for the anemometers, and various distances and cloud positions for the smoke tube and oil of wintergreen devices. The study resulted in guidelines for measurement site selection that are applicable to most inmine situations. It also showed that the use of correction factors is problematic. There are many potential pit-falls and there are cogent arguments against using certain correction factors. However, generalized correction factors were developed that can be successfully applied in routine ventilation work, provided that their use is properly understood.

Jan 1, 1985