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By Richard J. Mainiero

The Bureau of Mines investigated coal-mine-type short-delay electric detonators marketed by three domestic manufacturers to determine the accuracy of delays and the probability of overlap between adjacent de- lay periods. The Winzer index was computed and compared with the probability of overlap. A close agreement between the Winzer criterion and overlap probability was demonstrated. A permissible blasting unit capable of delivering a maximum firing energy of 4.0 J and a digital oscilloscope were used to measure the delay time with an accuracy of 20.25 ms. Another oscilloscope and a pulse transformer were used to record firing current. Experimental data indicated negligible overlap probability in detonators of shorter delay periods: periods 1 to 4, which correspond to 25 to 250 ms. However, a significant probability of overlap was detected in some detonators of longer delay periods: periods 5 to 9, which cor- respond to 300 to 500 ms.

Jan 1, 1985

By C. O. Beale

This paper is the first part of a two-part review on the subject. , , .. Here reference is made to the place of copper among the elements, Its properties, Its historical significance, and its 'end uses both in general and in South Africa. Its current market situation and its prospects are dealt with briefly. Some account is then given of the mining and metallurgical techniques employed. in South Africa in the production of copper, together with the names of the companies at present Involved and brief descriptions of their operations, ,... . .. The operations of these companies are described In greater detail In Part 11(Apn11985 Issue of the Journal).

Jan 1, 1985

By Murphy MW, Klaric SD

The history, operation and design of the Secor continuous rod production process is described. The effective operation of the plant is influenced by accurate monitoring and control of molten metal properties, mould release application, coolant application and composition and correct setting of all operating parameters. The continuity of operations, which is an essential feature of this type of plant, is also greatly influenced by the service life of wear parts in the operation. This paper deals with three principal wear parts which come into direct contact with copper during operation, these are:

Jan 1, 1985

By William H. Pomroy

This report describes Bureau of Mines research that led to the design, prototype fabrication, and successful proof-of-concept testing of an improved stench fire-warning system for underground noncoal mines. Stench systems are the most widely used means of warning driers in underground noncoal mines of fires or other emergencies. A stench system alerts miners that an emergency condition exists by injecting an odorant into the mine air. Although stench warning systems have been used successfully for over 60 yr, present systems suffer several serious shortcomings, including odorant toxicity, unreliability of warnings, widely varying stench concentrations, and others. In 1980, the Bureau began a research program to upgrade the stench warning system. The resultant system overcomes the deficiencies of existing systems by substituting tetrahydrothiophene for the commonly used ethyl mercaptan stench odorant, and through the use of a specially designed stench injector. The improved injector reliably meters stench fluid into either ventilation-air or compressed-air streams at a precisely controlled rate. Prototype hardware has been fabricated and proof-of-concept tested under bath laboratory and in-mine conditions.

Jan 1, 1985

By J. Trevor Eyton

This paper addresses some of the financial risk hedging mechanisms available to a corporation contemplating entering the mining business at a significant level of investment. The approach which I have adopted is that of a case study relating to the risk hedging aspects of Brascan Limited's acquisition of 46% of Noranda Inc., formerly Noranda Mines Limited, followed by some remarks on options open to mining companies for reducing financial risks. To appreciate the rationale for Brascan committing over (Can.) $800 million to the natural resource sector, some knowledge of Brascan's parent company, Edper Investments Ltd., is required at the outset. Edper Investments, prior to acquiring a 48% interest in Brascan, controlled Trizec Corporation, one of the world's largest property companies. Edper also was involved in the financial services sector through Continental Bank of Canada and Hees International Corporation. For some considerable time prior to Edper's investment in Brascan, Edper felt a need to provide a better balance to its portfolio of property and financial services. Brascan was rich in cash, relatively unleveraged, and with important existing holdings in natural resources and consumer products. The acquisition of a controlling interest in Brascan provided an opportunity to balance Edper's portfolio of property and financial services with world class acquisitions in natural resources, supplemented by consumer products and financial services. The end result of Brascan's activities over the last few years is illustrated by the following analysis of the book value of Brascan's assets at the end of December 1983. [Can.$% Millions _ Natural Resources81748 Consumer Products 654 38 Financial Services 157 9 Other Operations895$1,717100% ] Source: Brascan 1983 Annual Report. The large emphasis on natural resources came about from the fact that for Canadians operating mainly in Canada, natural resources were attractive. We were impressed by Canada's position in the world natural resource industry as illustrated by some of the following statistics: [CommodityCanadian Estimated Production In 1983 As % of World Total Newsprint 30 Potash 21 Uranium 18 Molybdenum 17 Zinc 17 Pulp 16 Nickel 16 Saw Logs 11 Silver 8 Copper 7 Lead 6 Gas 5 Oil3] Source: U.S. Bureau of Mines and Brascan estimates. In addition, the quality of Canada's reserves looked good to us. The polymetallic nature of many of Canada's orebodies offered a hedge against risk relating to any one metal. Put another way, the by-product metal credits offered a net operating cost advantage with respect to many of the metals mined. Our energy costs also appeared to provide Canada's natural resource industries with an advantage. We considered Canadian mining expertise as amongst the world's finest, as were the exploration equipment and technology developed in Canada. In addition, Canada offered a stable political climate and one we knew. Further, we felt the Canadian Government's future role in the industry would, on balance, be benign, partly because the Canadian content of the mining industry was very high in contrast to the petroleum industry. Granted, we could find cheaper sources of copper; however, to do so would involve venturing into regions where country risks were higher.

Jan 1, 1985

By Törbjorn Naarttijärvi, Bengt Ludvig, Agne Rustan

"Falling rock is one of the major causes of serious injuries and deaths in Swedish mines. The research at the Division of Mining and Underground Construction was therefore directed toward controlled blasting in hard intense jointed rock.The project was started with an extensive literature review. Model tests with a new equivalent model material have been initiated to find ways of improving blasting techniques. The result showed that long cracks arise at the perimeter holes when there is a long time delay between adjacent holes. This led to the theoretical development of a new initiation method with ultra short delays (1,5 ms) f or controlled blasting, called ""Cutblasting"".Full-scale tests have been done at LKAB in Malmberget in hard intense jointed magnetite ore. Four different types of perimeter charges have been tested, namely: tube charges, ANFO mixed with plastic beads, detonating cord and linear shaped charges. Three types of initiation of the perimeter holes have been used, conventional (half-second delay detonators), instantaneous and ultra short ""cutblasting initiation"" (1,5 ms delay). The change in rock strength before and after blasting has been studied with bore hole periscope, vibration measurement and ocular observation of the rock surfaces.Thefull-scale tests showed that ""cutblasting"" with detonating cord in the perimeter holes gave the smallest damage to the surrounding rock. A combination of cutblasting initiation and tube charges are anticipated to give an even better result. A new method of controlled blasting using linear-shaped charges has also been tested, however, this charge type needs further development.The full- scale test also showed that the damage which can be seen on the rock surf ace is about the same for different controlled blasting methods but the not-visual-damage zone varies as much as from 0,1 to 0,7 m.A new classification system for controlled blasting regarding the damage to the surrounding rock has been devised."

Jan 1, 1985

By James H. Boettcher

INTRODUCTION There are many and varied sources of finance available to the mining industry for exploration, development and/or the operation of mining projects and companies. These sources include equity from major as well as "penny" stock exchanges, precious metal mutual funds, private investor groups (from "grubstakes" to tax-oriented limited partnerships) and banks. The variety is representative of the fact that the world's capital markets are segmented and stratified according to risk-reward characteristics. This interrelationship is summarized in Exhibit I and 2 which relate (very approximately) various sources of finance to a typical mining project's life cycle and risk-return characteristics. The objective of this paper is to introduce, as it applies to the mining industry, a somewhat recent phenomenon represented by one of these capital markets segments referred to as "venture capital." Venture capital investing per se, which today is a multibillion dollars per annum investment business, goes back as far as Queen Isabela's backing of Columbus' "wild ideas." The real institutionalization of the venture capital process really began in earnest, however, after World War II. Today over 700 private venture capital sources (and more government related ones) exist providing funding to a range of industries, but typically related to the "high-tech" business. The table to the right shows industries financed by venture capital funds between 1980 and 1982. Conspicuous by its absence is, of course, mining which is not a great surprise since typical mining projects up until recently were large, required long lead times and were undertaken by established mining houses. Also, as most of you can appreciate, successful investing in the mining business requires a great deal of experience and understanding of the industry which most venture capital funds do not have. TARGETED RETURN The rate of return objective of most venture capital funds is, according to the legalized version, to realize a return which is "substantially in excess of that obtainable through conventional equity investments." One may say that a common objective of venture capital funds is to realize a 20% to 30% compound annual internal rate of return on capital over their life which is often ten years. [ ] This objective has been recently more feasible in the mining sector due to the development of smaller precious metal projects which cost less and are quicker to generate cash flow than the behemoth projects of the 1970s. In addition to precious metals, venture capitalists have invested or looked at a variety of other mining projects including ones as prosaic as a high margin "kitty litter" operation, sand-gravel and other industrial minerals operations, the leveraged buyouts of coal mines or mineral divisions of major energy or mining corporations, and even in in-situ copper or gold leaching ventures. A typical investment is in the range of $100,000 to $3,000,000 although some can go as high as 5,000,000. This implies a project size up to, say, 30,000,000 if a venture capital fund does it on its own. Larger projects can be done if the equity portion of the investment is syndicated with other investors.

Jan 1, 1985

By L. B. Phelps

Many coal mining companies have potential surface mine reserves which either are known or suspected to have had prior drift mining activity on them. In many cases, there is no documentation on these mines or at best, very fragmented records. These undocumented abandoned underground mines are creating engineering, financial, and environmental difficulties and concerns for both surface coal mine operators and regulatory personnel. This paper examines the use of resistivity techniques in detecting entries of abandoned drift coal mines. The detection of such a drift mine entry would confirm the presence and orientation of an abandoned underground coal mine.

Jan 1, 1985

By John R. Caldon

INTRODUCTION Leasing has become a major industry in many countries because of the advantages it affords. Whilst the accounting, legal and tax treatment of leasing varies from country to country, there is far more similarity than difference. The general approach to the subject is largely the same. This paper looks to the basic financial considerations in the decision to lease or buy. TYPES OF LEASES Before embarking upon the subject, it would seem appropriate to define a "lease". A lease may be defined as: "an agreement granting one party the right to use, for a specified period of time, property owned by another party in return for a series of payments of rental by the user to the owner''. Ownership, of course, generally entitles the owner to unrestricted use of the asset over its useful life in contrast to a lease which gives the lessee use over a limited period. The distinction between the status of owner and a lessee often is fairly small. In this case we are dealing with what is generally termed a "finance lease". A finance lease is one which substantially transfers the risks and benefits of ownership from the legal owner to the lessee. For example, a finance lease would exist where the lessee enters into a lease of an asset for most of its useful life and has an option to buy the asset at the end of the lease for a price which takes cognisance of the rentals already paid. Where a lease does not substantially transfer the benefits and risks of ownership to the lessee, i.e. those benefits and risks remain with the owner and lessor, the lease is termed an "operating lease" and is an agreement for the renting and usage by the lessee of an asset owned by the lessor for a limited period. An example of an operating lease might be where a tenant leases a building for a defined period say 6 years with the rent and occupancy subject to renegotiation at the end of the lease term. The economic consequences of the distinction between a finance and an operating lease is very important. With a finance lease, the lessee has a de facto economic interest in the asset and the alternative to a finance lease is some form of purchase; with an operating lease, the lessee does not have a basic economic interest in the asset and consequently a comparison with a purchase option involves far more than simply a funding comparison. Some of the principal differences between finance and operating leases can be summarised as follows: (a) finance leases: -the risks and benefits of ownership are substantially transferred to the lessee; -the lessor normally recovers his investment during the term of the lease; -the lessor in entering into the transaction is relying more on the creditworthiness of the lessee than the underlying value of the asset; - the lease is either non-cancellable or a large penalty will apply for unilateral cancellation by the lessee; (b) operating leases -the risks and benefits of ownership remain essentially with the lessor; -the lease rental income would not normally cover the recovery of the lessor's investment; -the lessor evaluates his risk in terms of the underlying value of the assets;

Jan 1, 1985

By William C. Beebe, Russell E. Martin

An account of driving and concreting two 900 m railroad tunnels for the Denver and Rio Grande Western Railroad under emergency conditions. Details the importance of on-site decision making by the Owner in completing the project successfully in record time. A general description of the geology and construction methods. The Thistle Drainage Tunnel drained water impounded behind the Thistle slide and serves as permanent diversion of the Spanish Fork River and Thistle Creek around the slide area. The project involved 684 meters of 5 m horseshoe tunnel, a 5 m diameter raised shaft and 23,000 cm of cut excavation.

Jan 1, 1985

By Jerome C. Neyer

Within most of Canada and the northern third of the United States, the soils overlying bedrock are of glacial origin. Tunnelling in glacial soils presents numerous challenges to the contractor, including abrupt changes in soil type, boulders and glacial erratics, water bearing fine sands and silts, toxic or explosive gases, and glacial till. This paper examines the available techniques for geotechnical exploration in glacial soils; the relationship between subsurface conditions predicted by various techniques and conditions actually encountered during tunnel construction; and potential improvements in the planning and implementation of geotechnical explorations. Case histories of geotechnical exploration and tunnel construction in glacial soils are also reviewed.

Jan 1, 1985

By R. S. Burns, J. G. Erskine

The performance of the nine 5.5 m diameter x 6.4 m mills (18 x 21 ft) initially installed at Bougainville Copper Ltd. did not meet the laboratory and pilot plant derived design expectations as measured by Bond Work Index. During the post-commissioning period, inefficient grinding of coarse material resulted in a build-up of large circulating loads and led to reduced throughputs because of pump and cyclone overloading. Installation of larger pumps and cyclones and development of an improved circuit control philosophy alleviated materials handling problems and permitted higher tonnages to be attained. Since 1977, plant throughput has been increased by installation of three additional mills. These are 0.9 m (2.9 ft) longer than the other nine and have a higher capacity. Developments in classification and mill speed-up, together with a finer ball mill feed size and substantial improvements to mill availability (99% in 1982) have further increased plant capacity. There is a continuing emphasis on improving grinding circuit efficiency in terms of throughput/grind. Current development work includes trials of graded ball charges, different liner profiles, and assessment of scalping/regrind proposals.

Jan 1, 1985

By Robert L. Akright

LOCATION AND HISTORY The Candelaria silver mine is located in an arid, isolated desert setting in Sections 3 and 4, T.3N., R.35E., and Section 33, T.4N., R.35E., Mineral County, Nevada (Fig. 1). Silver was discovered in 1863 by Mexican explorers, and high grade silver veins were mined from the early 1870s through the 1880s. Essentially all mining had ended by 1890. The veins were mined by underground methods typical of the period. As is the case in many mining districts, Candelaria was studied and explored by a number of companies. All these efforts were terminated short of mine development because of low silver prices and difficult metallurgy. On March 1, 1976, Occidental Minerals (Oxymin) entered into a Limited Partnership agreement, known as Candelaria Partners, as General Partner with Congdon and Carey Ltd. No. 4. Prior to the agreement, Congdon and Carey had acquired the candelaria properties as part of a bullish silver program and did considerable exploration which indicated the possibility of a large reserve of shallow silver mineralization. GEOLOGY AND ORE DEPOSITS Silver and gold mineralization in the Candelaria district occurs in high-grade fissure veins with silver values ranging from 0.6 to 7.8 kg/t (20 to 250 oz per st). These veins, combined with the low grade disseminated mineralization in the intervening material between the veins, form Manto- like deposits 15 to 46 m (50 to 150 ft) thick. Three such deposits are found in the Candelaria district: the Lucky Hill, Mount Diablo, and Northern Belle deposits (Figs. 2 and 3). The average ore grade of the Lucky Hill and Mount Diablo [ ]

Jan 1, 1985

By Kenneth A. Grace

Jan 1, 1985

By C. D. Harrison

This paper presents the results of 18 high-G centrifuge tests performed at the Electric Power Research Institute's Coal Cleaning Test Facility in January 1985. These tests, using -28 mesh (0.6mm) froth flotation product, show that the high-G, solid-bowl centrifuge can produce clean-coal moistures of less than 12 percent at solids recovery rates exceeding 98 percent. The high-G centrifuge achieved these low moistures by applying centrifugal forces up to 2,000 times gravity. Because these forces are two to three times the forces used in a screen-bowl centrifuge, the high-G centrifuge can use a solid bowl and still produce a low-moisture product. The solid bowl captures ultrafines that would pass through a screen bowl, and thus obtains higher recovery rates than a screen-bowl centrifuge.

Jan 1, 1985

By Fernand Dubuc

"The New Pascalis property is situated in Louvicourt and Pascalis townships, about 200 km east of Val d'Or, Quebec. It is made up of 38 claims under option to SOQUEM since August I, 1981 during which time SOQUEM has earned a 60% interest. The property is underlain by archean basaltic volcanics that have been intruded along the west boundary by the Bourlamaque batholith, and by north -trending dykes.The 1982 disco very is related to the re-evaluation of a 1931-gold showing located in the southeastern part of the property, a combination of the presence of a weak IP anomaly at the eastern end of the showing and overburden stripping at that location, resulted in the discovery of a mineralized diorite dyke.The dyke, which strikes N 20 ° Wand dips vertically , has intruded E-W striking agglomerates. The dyke contains south dipping, gold-hearing quart z-tourmaline-pyrite veins that are distributed in a ladder-type arrangement. Visible gold may he observed in drill core, and is generally associated with pyrite porphyroblasts.Diamond drilling has outlined th e dyke for a strike length of 300 11/ and a width of about 10 m, Result s of this drilling indicate, to a depth of 155 m, reserves of 834 000 metric tonnes grading 8.25 g Au/t un cut or 5.38 g Au/t cut to on e ounce. However, four deeper holes have added depth extension to 400m. Also, west of the dyke and within 150 m, other promising gold values have been intersected within quartz-tourmaline veins associated with other parallel dykes."

Jan 1, 1985

By Gerald G. Schmitt, Richard D. Dick

Continuous Reflectometry for Radius vs Time Experiments (CORRTEX) was used to monitor several conditions of blasts such as the detonation velocity of the explosive column, the functioning of different types of initiators and initiation schemes, and the behavior of the stemming column confining the explosive. The CORRTEX data were also used to deduce the occurrence of dead pressing of ANFO slurry. Measurements of propagation speeds of shock waves in the stem column with various cables allowed some conclusions concerning bridging, stem failure, and stress levels in the stem.

Jan 1, 1985

By B. Thomas Mansbach

INTRODUCTION The Overseas Private Investment Corporation ("OPIC") is a U.S. Government agency mandated to promote the economic development of the less developed countries ("LDCs") by assisting U.S. private investment in the Third World. Generally, investment decisions turn on the optimism or pessimism of the private sector's financial analysis of a project, with market price of product a major unknown in a very chancy set of projections. Discussions with American mineral companies, however, show that, more often than not, in developing country projects it is the political risks of investing in mineral exploration and extraction that pose the most serious deterrent to investment. In several of the projects described here, investments would not have been made if OPIC had not been involved providing support to the project sponsors and their funding sources. Clearly it is not OPIC's business to promote U.S. investment in a project which is not commercially viable, but OPIC's programs can neutralize the political uncertainties which act as disincentives to investment in otherwise commercially viable projects. That is to say, OPIC's programs are designed to reinforce market decisions and not distort them. Although OPIC is an independent agency of the U.S. Government, it is managed by a Board of Directors, the majority of whom come from the private sector. This, coupled with the statutory requirement that it be self-sustaining and operate with due regard for the principles of prudent risk management, requires that it operate on a business-like basis. Although established as a development agency, to the business public OPIC is both an insurance company and a lending institution, with two major programs which are available to U.S. investors in the minerals sector: its political risk insurance program and its finance program. Each has been specially tailored to the meet needs of the mining industry. The insurance program provides coverage against four basic types of political risk: Currency Inconvertibility, Expropriation, loss caused by War, Revolution and Insurrection and Interference with Operations as a result of an act of War, Revolution or Insurrection. Coverage against the risks of Civil Strife can be added to both War, Revolution and Insurrection coverage and Interference with Operations. Inconvertibility coverage provides protection against a deterioration in an investor's ability to convert local currency into U.S. dollars. This deterioration can be the result of either active or passive delays. Active delays consist of a change in exchange laws or regulations that leads to inconvertibility delays of 30 days or more. For example, if the exchange regulations at the time of contract execution allow an investor to transfer earnings equal to 18% of its registered capital per annum and the government of the host country later changes the law to allow conversion of only 12%, the insured would convert the 12% transferable under the new exchange regulations with the government foreign exchange authorities, delivering the remaining 6% to OPIC for conversion at 99% of the then prevailing rate of exchange. (OPIC does not cover devaluation risks.) Upon delivery of the local currency to OPIC, normally at the U.S. Embassy in the project country, the insured's account in the U.S. would be credited with dollars. Delays can also result from what is termed passive blockage, which includes administrative delays of more than 60 days (sometimes longer) caused by the bureaucratic tie-ups or pigeonholding of transfer requests, as well as delays suffered simply because the government of the host country does not have sufficient foreign exchange. The transfer procedure is the same as with active blockage - the local currency is delivered to OPIC in the project country and OPIC provides dollars in the United States at the then prevailing rate of exchange. The second coverage -- Expropriation -protects not only against the loss of the investment due to the well-known risks of expropriation, nationalization or confiscation by the host government, but also against

Jan 1, 1985

By John Cline

The economic value of calcium carbonate when used as an extender or filler basically falls into two categories: 1. Lessening the cost of the final product to which it is added. 2. Contributing desirable physicals to the final product. In most instances, a combination of these two may be achieved. The mineral limestone which is found in abundant quantities in many areas of the world is the source of 99% (+) of the calcium carbonate used as fillers and extenders. Precipitated, or chemically formed, calcium carbonate is also available, but by comparison, in very limited quantities.

Jan 1, 1985

By Getliffe RK

It is becoming more and more difficult to operate mineral and metal processes profitably, as operating costs rise, quality demands in-crease, international competition becomes more fierce and Government charges remain at their current levels. Profitability today depends upon efficient operations, which can only be achieved through precise and dependable con-trol of each process unit comprising thetotal plant.Modern process control systems utilise distributed architecture with microprocessor-based controllers, data acquisition devices and VDU operator stations. Honeywell intro-duced this control technology in 1975 with the "Total Distributed Control" System. Now, building on the proven performance and re-liability inherent in TDC hiway modules, Honeywell has extended the TDC system to inte-grate both management information and control by providing distributed processing modules on the new TDC 3000 Local Control Network (LCN).

Jan 1, 1985