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By Jeffrey M. Christian

Gold prices are rising, in what is coming to be seen as the beginning of a longer term upward trend. After languishing between $325/oz and $364/ oz from early 1991 into early 1993, prices began rising in the first half of 1993. Gold rose from a low of $326/oz in March 1993 to $414/oz on an intraday basis in early August. There was a speculative sell-off at that point, which took gold prices quickly back down to $350/oz briefly in October 1993. At that time, there still was a fair degree of skepticism about gold's price prospects. Many banks believed that gold prices could not mount a sustained rally. As prices dropped in August and September of last year, these suspicions seemed to be confirmed. Gold prices quickly rebounded, however, reaching $395/oz by early January 1994. The strength of this renewed increase led many banks, investors and others that had held negative views of gold to grow more positive. They began buying gold and trading it from the long side of the market. The result was that gold prices remained strong during the first quarter of 1994, trading between $375/oz and $390/oz.

Jan 1, 1994

By R. G. Benson

The San Luis deposit of Costilla county, Colorado contained 11,021,000 tonnes (12,149,000 tons) of ore at 1.4 g/t (0.040 oz/st) gold in two minable zones. Gold mineralization is associated with silicification and quartz-sericite-pyrite alteration localized in breccias along a low-angle detachment fault zone in Precambrian gneiss. Gangue minerals include chlorite, specular hematite, chalcopyrite, chalcocite, and fluorite. Mineralization is mid-Tertiary in age and has a direct genetic relation to the emplacement of felsic intrusions. Portions of the ore body are unconformably overlain by sedimentary rocks of the Tertiary Santa Fe Formation. The deposit formed during the early stages of extensional tectonism along the eastern edge of the present day Rio Grande rift.

Jan 1, 1994

By C. G. Anderson

Extraction of valuable resources from complex orebodies will become more common. This is obvious for two reasons. First, the cleaner and more readily processed ores have continually been depleted through centuries of mining. Second, new technologies have evolved for effectively handling complex ores. One of these new processes has been in place at Sunshine since 1984. Based on sulfuric acid oxygen pressure leaching with nitric acid as an oxidizer, this patented technology allows silver and copper to be efficiently recovered from a complex sulfide concentrate. As efficient as it is, this process represents novel technology found nowhere else on an industrial scale. As such, a research program was undertaken in 1989 to optimize this leach process and to better understand it. From this study, several potential plant improvements were found and recommended. As a result, two of these options, nitric acid replacement by sodium nitrite and concentrate regrind are now used in day to day operation at Sunshine. Patenting of these changes was recently accomplished (1). Thus, the development, perceived mechanisms, plant integration and potential applicability of this technology will be covered in this paper.

Jan 1, 1994

By R. J. Chase, C. Davies

"Abstract- The Merelani graphite-tanzanite deposit is located in northeast Tanzania, 14 kilometers south of Kilirnajaro International Airport and in close proximity to the towns of Moshi and Arusha . The graphite mineralization is hosted by relatively undeformed linear Proterowic 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.Feasibility 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 8o/o 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.ln 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 Stephen K. Pave1

Over 1,100 tons per day of Fluid Catalytic Cracking Unit (FCCU) catalyst is used worldwide. During the cracking reaction, catalyst is contaminated by deposited metals including nickel, vanadium, potassium, copper, iron, sodium, etc. To compensate for contaminants, a portion of the circulating catalyst inventory is withdrawn for disposal and fresh catalyst is added. The DEMETR process takes spent FCCU catalyst and removes a portion of the metal contaminants, enabling the refiner to recycle demetallized catalyst, thus reducing the solid waste from the refinery. Through August, 1993, the operation of one unit for one refiner has resulted in the recycling of over 7,500 tons of spent catalyst.

Jan 1, 1994

By Zvi Rivlin

Classical nucleation theory states that in first order phase transformations, such as liquid to solid transition, nucleation of the product phase starts with the formation of small, unstable clusters (embryos). When the thermodynamic barrier to nucleation is overcome, the embryos grow and attain a critical size, beyond which they are stable, i.e. they become nuclei. If nucle- ation does not occur, the parent, liquid phase remains in metastable equilibrium. At temperature lowers, undercooling increase and atomic mobility decreases. The viscosity change in the undercooled liquid may result in the formation of glassy state. As demonstrated in previous papers [I-21, in solidification involving surface nucleation of the product phase, as the case is in rapid quenching by melt-spinning, both nucleation temperature and nucleation time depend upon the number of atoms available at the isothermal surface in contact with the substrate. As a result of the thinness of the melt-spun ribbons, the embryo clusters that form at the freezing temperature may not be supplied by the amount of atoms necessary for their growth to critical nuclei sizes. In such extreme conditions, the liquid does not crystallize, it forms a metallic glass. A numerical simulation method is proposed for the reactions involved in embryo cluster formation and growth, at the atomic level. The simulation enables the caIcuIation of either the nucleation or the glass transition temperatures. Calculations made for the well-known glass forming CuZr and FeB systems afford prediction of the geometrical and thermodynamically conditions necessary for the formation of either crystalline or amorphous ribbons in melt-spun ribbons.

Jan 1, 1994

By Godwin J. Igwe

For soil remediation technology to be effective, a thorough understanding of the interactions between a targeted contaminant and the soil matrix is crucial. Proper selection of remediation technology, based on understanding the bonding/binding characteristics of the soil and contaminant, can often result in significant remediation cost savings. Contaminated soil cleanup is complicated by both the physical nature of the soil formation and the behavior of contaminants introduced into the formation. Contaminants can exist in the subsurface in different phase attached to the soil surfaces, dissolved in the ground water, or occupying pore spaces as a separate gaseous or liquid phase. Contaminants properties and how they exist in the subsurface influence their toxicity, mobility and treatability with different remediation technologies A soil characterization study was performed to provide information for remediation technology selection for an inorganic lead contaminated soil. The soil pH, TCLP analysis, thermogravimetric analysis, the soluble anions and cations present, equilibrium leaching tests, analysis by x-ray fluorescence, sequential extractions and speciation analysis using scanning electron microscopy, were all used. Results provided many insights into contaminant behavior in the soil, indicating ultimately whether soil washing or solidification/ stabilization remediation technologies were applicable.

Jan 1, 1994

In 1952 when universities imposed fees on students and most students won either Commonwealth or Government department or private scholarships to study, I won a scholarship to study mining engineering at the University of Technology in Sydney. The univ

Jan 1, 1994

By A. J. Kwitowski

Teleoperation is a technology that can provide significant health and safety improvements in mining, by relocating machine operators hundreds of meters away from the face area. The U. S. Bureau of Mines (USBM) has recently developed a teleoperation system for continuous mining and haulage equipment. This system features near-real-time closed-loop control. A prototype system was developed and demonstrated on the surface. This system could be used in thin-seam applications down to 914 mm. Details are provided on the developed teleoperation system, results of testing, and expected, future applications of this technology for improved safety.

Jan 1, 1994

By J. P. Ulery

As a result of several recent methane/dust ignitions in surface auger and highwall mines, the U.S. Bureau of Mines investigated the occurrence of methane gas at these operations. Three mine sites were visited in western Kentucky and one in western Pennsylvania to collect run-of-mine coal samples for gas content determination using the modified-direct-method (MOM). Results indicate the samples emitted small quantities of methane, carbon dioxide, and nitrogen. Either methane or nitrogen was the predominant gas released. The same gases were released after crushing the samples for residual gas content; however, nitrogen was the primary component of this fraction. Total ~as contents ranged from less than 0.01 cm /g to 0.54 cm3/g. The hydrocarbon gases probably originated during coalification. Other gases may have originated partially as a byproduct of coalification and partially as a result of other, near-surface processes. The data suggest that although methane quantities are small, desorption could occur at near surface conditions prior to mining. The desorbed methane could accumulate as a free gas in fractures in the coal bed or roof rock. When these fractures are penetrated by the auger, methane could rapidly enter the whole atmosphere possibly creating explosive conditions.

Jan 1, 1994

By Dean H. Ambrose

The U.S. Bureau of Mines recently developed computer graphics simulations to characterize mining scenarios, specifically for room-and-pillar mining operations in a three-entry longwall development section. These simulations compare productivity between shuttle car and continuous haulage systems concepts. One of the continuous haulage systems concepts has bolting capabilities that supplement haulage function. Simulations showed the continuous haulage system to be more time efficient than the shuttle car system. Researchers can reuse the simulation code (e.g., mining rates and equipment capacities can be changed) should investigators care to compare production of other mining scenarios. computer simulation, found computer model modification flaws and mining scenario conceptual errors. The fundamental rationale for three-dimensional computer is to cheaply, easily, and quickly obtain information about operation and of a current or proposed mechanical coal or metal/nonmetal mining system. This report documents the computer graphics model and simulation developments and discusses some of the results and observations from the simulations.

Jan 1, 1994

In 1989 Henry Fairlie wrote a cover story for The New York Republic, 'Fear of Living'. He noted, `The first Apollo space craft caught fire during a test on the launch pad. Three astronauts were killed, the nation was shocked and horrified, all the more because the screams and scrambles of the astronauts could be clearly heard'. After a brief delay in manned flights, the Apollo program resumed with strong public support; within 18 months, Apollo 11 landed on the moon. Fairlie contrasts the Apollo tragedy to the 1986 Challenger disaster. `The prevailing mood in America so panicked NASA that it took almost three years to send up another shuttle', he observed. `In 19 years between these tragedies, the idea that our individual lives and the nation's life can and should be risk-free has grown to be an obsession threatening to create an unbuoyant and uninventive society.' Taking risks is a normal part of our daily routine. The act of living involves minute-by-minute decision-making focused on survival through the practical management of risks. The act of breathing exposes each individual to the risk of infection while the act of crossing the road could almost be considered suicidal. We deal with these constant threats by observing simple rules of hygiene, safety or what may be labelled as common sense. The rules of community, designed to minimise risk in society, can at times lose focus and result in the imposition of schemes that have a far greater cost than the issues from which they protect. Effective management of risk, whether in the community or a business is about awareness and balance and the elimination of unacceptable risk. Risk cannot be eliminated from our lives or our working environment. However it can be managed if it is properly understood, monitored and controlled. The purpose of my presentation today is not to provide a comprehensive technical risk inventory but to capture the essence of risk and the application of management strategies designed to deal with it in a positive fashion. The basis of our differential financial reward system is risk. The key to successful management is to deal with the downside risks in such a fashion that the benefits of enterprise are not eliminated. The key question any investor must consider is `can the major risks assQciated with a venture be managed or eliminated while retaining a greater proportion of upside potential'. The answer to this question is the ultimate value an investor would assign to any project. In reviewing the relevance of risk to our industry the range of papers to be presented today provide examples of how management deals with specific components of risk. In each case the value of the business has been enhanced by the practical application of balanced risk management. The ultimate success of the industry depends very much on this concept as it also provides a public showcase upon which we are judged. Therefore, from all perspectives the effective management of risk is a cornerstone from which to build a stable and progressive mining industry.

Jan 1, 1994

Valuers will often intuitively express the probability that property value will exceed a certain amount . . . 'I think the chances that the value will exceed $50 million are excellent. The chances that they will exceed $80 million are poor'. This paper shows how it is possible to combine the uncertainties of the value of several key items to provide an estimate of the probability of a certain overall value being achieved. The valuation of a large copper/gold deposit was naturally influenced by uncertainties in the base assumptions of costs and metal prices. Potential acquisition of the property through share purchase raised the issue of what was a reasonable intrinsic value for the shares. Market considerations could be used to appropriately adjust the intrinsic value. After a range of possible metal prices and operating costs were determined, estimates were made of their probable distributions. By combining these probabilities in a random selection, a range of property values was calculated. Each value had its respective probability of occurrence. This allowed a most likely value of shares to be calculated. This paper demonstrates how the valuer's intuition is complemented by numerical analysis.

Jan 1, 1994

By L. D. Smith

"The economic evaluation of a mineral project requires a great deal of diverse information to be brought together in one place. The greatest concern is that there will be an error by omission, so it is useful to have a detailed list of what one needs to know in order to make a thorough evaluation. The list that is presented below is intended to act as a checklist for the person who develops and reviews an evaluation, and as a shopping list for the persons gathering data at the project site.There are varying degrees of detail required at the different stages of evaluation in a project, from the ""quick and dirty"" overview, to the pre-feasibility study, to a full detailed feasibility study, to a due diligence review. This list addresses most of the economic variables in a project and can be used for all levels of studies. Its purpose is to identify a variable or issue and to raise a question, which the reviewer can then pursue in more detail using increasingly more comprehensive checklists for each topic. While developed from the point of view of a new project, this list is equally valid for an ongoing operation."

Jan 1, 1994

By S. J. Ristorcelli

Historically, geologic data has not been adequately considered in resource estimation. More recently, with the use of computers and sophisticated estimation algorithms and geostatistical justifications, geology has been downplayed further. Many reasons are given for not using geology including cost, time and irrelevance. None are valid. Boundaries defining mineral domains should be used in computer-generated resource estimates. Selected case histories show how the failure to honor geology has caused discrepancies in resource estimates of actual in-place resources. After-the-fact differences have included decreases in tonnage of up to 50% and increases up to 300%; partial to complete recategorization of material; and 50% decreases in grade. The costs of gathering and using geology are trivial compared to the potential consequences.

Jan 1, 1994

This report on the Venezuelan coal industry is the seventh in a series of studies on coal exporting countries requested by the House Appropriations Committee, The committee asked that the basic differences in mining costs for U.S, and foreign mines be identified, especially those costs incurred in complying with health, safety, and environmental regulations.1 Basic costs in extracting raw coal are analyzed in this report for surface operations, This report also provides a limited analysis of the relative market competitiveness of selected Venezuelan and U,S. steam coal mines in three electric utility markets: New England and the east coast of Florida in the United States, and western Europe. Although some Venezuelan coal has coking characteristics, all coal-producing regions of Venezuela sell coal in steam markets.

Jan 1, 1994

By Henry E. Hilliard

The production, use, and emission of vanadium in the United States has been traced for the year 1991. Consumption was 3,300 tons2, exports 1,285 tons, and imports 2,013 tons. About 98% of production was used in metallurgy; the remainder was consumed in chemicals, including catalysts. Total emissions to the environment in 1991 were estimated at about 3,100 tons, including emissions due to the combustion of coal and petroleum products. Emissions resulting from the production of ferrovanadium were 130 tons, and emissions from the production of steel about 6 tons. Dissipative losses, defined as losses that occurred during use or as a result of wear, were estimated to be no more than 3 tons. Disposal losses were estimated to be about 4,600 tons. Most of these losses were steel products that contained 0.1% or less vanadium and mayor may not have been recycled. When these products are recycled by the steel industry, vanadium ends up in the steelmaking slag and does not return to vanadium use cycle. Worldwide emissions due to anthropogenic and natural sources were briefly reviewed. It was concluded that industrial emissions were about three times greater than emissions from natural sources.

Jan 1, 1994

By C. Cheung, U. Erb

"Over the past few years, nano-processing of magnetic materials has received considerable attention, because many magnetic and other application-specific properties have been shown to be enhanced in materials with ultrafine grain size. This paper reviews recent advances in the production of nano-processed soft magnetic materials such as pure nickel and cobalt as well as binary nickel-iron and ternary nickel-iron-chromium alloys by electrodeposition. Magnetic, electrical and mechanical properties of these materials are presented and discussed in terms of their microstructural defects.IntroductionIn recent years, nano-processing of materials to enhance their magnetic properties has received considerable attention [1-23]. Thin films, compositionally modulated thin films, granular films and bulk materials have been produced by many different techniques. These include gascondensation [1-6], ball-milling [7,8], chemical processing [9,10], metal-organo complex routes, solution reduction and co-precipitation [11], sol-gel methods [12], sputtering [12-14], rapid solidification [15], devitrification of amorphous alloys [16-19] and electrodeposition [12,20,21]. The potential application of nano-engineered materials with enhanced magnetic properties has been specifically discussed for soft magnets [18,19,22,23], hard permanent magnets [15] as well as for layered materials showing giant magnetoresistance effects [13,14] and nano-composites for magnetic refrigeration [11,12].The purpose of the present paper is to review recent advances in the development of nanocrystalline soft magnetic materials by electrodeposition methods. These materials could find applications in areas such as magnetic recording heads, high efficiency electric motors, transformer cores, etc."

Jan 1, 1994

Present value maximisation studies are a useful aid in enhancing the economic performance of open pit mining operations. Maximising present value helps to reduce the risk of financial failure. Maximisation of present value also means that the capital invested is being used most efficiently. A characteristic step in determining the present value of an open pit mining operation is to set out the sequence in which increments of material (ore of various grades and waste rock) are mined. Traditionally, present value maximisation has been performed by selecting a cut-off grade for each increment so as to maximise the present value of the total operation, by an iterative process using computers. Kenneth F Lane has developed a method and applied it to many mining operations. An alternative method for determining the maximum present value of an open pit mining operation is given. In this method the maximum present value is determined by working backwards from the end of the operation life, progressively asking the question of each increment `what cut-off grade maximises the the present value at the start of mining of that increment?' The method allows calculations to be performed by a `spreadsheet' package. Present value determinations are characteristically performed under constant conditions (eg prices, costs) throughout the operation life. Unfortunately real life circumstances are rarely constant, with the costs of mining inputs rising at variable rates. The prices received for mineral products have been shown to broadly trend downwards with time in real terms. Treatment of such changes in the determination of the maximum present value of an operation is discussed.

Jan 1, 1994

By Debra A. Griffith

The U.S. Bureau of Mines currently is researching the relationship between the level of back strength and the probability of low-back injury. This report is a review of the literature and statistics on over-exertion injuries. Overexertion continues to be a significant source of injury in metal and nonmetal mining, accounting for approximately 24 pct of all injuries yearly. These injuries, particularly to the lower back, can be very expensive in human and monetary terms. An examination of the accident data on overexertion injuries is necessary to provide a background for research into prevention and/or amelioration of those in-juries. The job categories outlined in the Accident Data Analysis data base most affected are "Mechanic/Electrician" and "Mill/Plant Worker." The age group most affected is "30-39" years, and the experience group most affected is "0-.99" years. The most prevalent type of overexertion injury is "Strain/Sprain," and the trunk is the body part most often involved in an overexertion injury.

Jan 1, 1994