Search Documents

STEPHEN TABER, Columbia, S. C. (communication to the Secretary?). -The fibrous salt crystals described by Dr. Branner are interesting, and I am glad that he has put this additional evidence on record. It confirms the results that I obtained in growing fibrous crystals in the laboratory. Much similar evidence of value to science in interpreting the laws of nature has doubtless been lost through failure to appreciate little things. Mr. Dresser points out that the boundary between chrysotile veins and massive serpentine is finely irregular 'when examined under the microscope. This fact I have observed in studying chrysotile veins and also, mode recently, in studying veins of fibrous calcite and fibrous gypsum. For the latter veins the statement holds true when the walls are of shale as well as when they are of the same material as the veins, but in no instance have I observed any evidence of replacement. The description of the vein walls given in my paper (pp. 1984 to 1985) was megascopic, not microscopic. The fact that chrysotile veins have sharply defined boundaries and are easily separated from the wall rock is evidenced by the small amount of waste adhering to the "crude asbestos" which has been shipped in such large quantities from some of the Canadian mines. Mr. Dresser has good ground for his statement that there seems to be no obvious reason why the term "mass fiber" should be restricted to anthophyllite. I have never examined the serpentine at the East Broughton mines; but in studying other serpentines under the microscope I have noted that much of the so-called "massive serpentine" is really finely fibrous (see pp. 1974 to 1975). The texture of such rock is, however, altogether different from that of mass-fiber anthophyllite, and I believe that the fibers have developed in a different way (see pp. 1981 and .1998). Mr. Graham raises certain objections on the ground that the laboratory production of fibrous crystals was limited to substances which go into solution with decrease in volume. Since my paper was written, however, I have succeeded in obtaining fibrous crystals of ammonium nitrate, a salt that dissolves with expansion in volume.

Jan 5, 1917

By J. W. Howland

A demonstration of dozer blades, designed for recontouring area-mined spoil and shown effective at Kansas and East Texas surface mine sites, was conducted at a Northeast Arizona surface coal mine to determine their effectiveness in different climate and soil conditions. The specialized tools were: 48-ft angle blade (on side-by-side tractor), 24-ft grading bar, modified 24-ft "U" blade (on side-by-side tractor), and a 13-ft deep "U" blade. Interest in the increased dirt-handling capacity of a previously built 22-ft blade, resulted in the design of a new Centerflow Blade of good versatility, able to maintain increased flow in otherwise difficult-to-move spoil. The demonstration involved 263 acres and showed a reduction of 50% in reclamation costs and 20% in fuel requirements for this mine site over conventional equipment. This savings resulted from improved technology, trained operators, and rigorous application of supervisory and monitoring techniques. Procedures and results of the demonstration are presented and analyzed here, along with guidelines for application of findings.

Jan 1, 1982

By Conrad W. Steller

What is the definition of a successful construction or development project? It could be described in many ways: a project that performs as designed; a project completed on time, a project completed within budget. The title of our talk today is, "The Advantages of Applying Design/Build -Construction Management to the Mining Industry." As our talk develops, you will see that rather than tell you how to apply this concept, we will discuss the advantages and details of Design/Build so that you can independently apply the concept. Design/Build is not new, and it cannot be universally applied. It has, however, within the past ten years, carved a specific and substantial place in the overall construction -development market. The reasons for its rather recent rise to considerable prominence as a concept is due, in part, to the increasing urgency of gaining productive access of a production facility and, in part, to the inherent advantages of the concept's economics--and they are considerable. If the Design/Build concept of contracting were fully understood, it would, without exception, be the favored way for private industry to contract for its new construction and development as well as renovation work. The basic advantages are: earliest possible access and completion at the lowest cost. Design/Build is often equated and compared to "fast track" or "turnkey" methods of construction. The Design/Build concept can, in fact, be both of these or neither. "Fast track", in and 6f itself, implies that the project will be phased construction, that is to say, it will be built quickly; whereas I "turnkey" is a measure of the completeness of the project, usually meaning essentially that the

Jan 1, 1977

By M. Kamyab

Transportation of fluid and slurry (fluid and solid particle mixtures) in a pipe and annulus space has been the focus of numerous studies. There are different parameters to be considered when studying slurry transportation. These include slurry velocity or flow rates; fluid properties such as density and rheology; and solid particle properties including concentration, density, shape and size. Also the angle of the flow conduit, rotation of the pipe and possible eccentricity of the annulus are other factors which influence slurry transport characteristics. Although a number of analytical, numerical and empirical equations as well as numerical simulations have been developed for studying the flow and slurry transport characteristics, the results need to be validated against either field or lab data. As performing field tests is costly and time consuming, conducting simulations at the laboratory scale appears as a good alternative. Different flow loops have been designed to study slurry transport behaviour in different science and engineering disciplines including oil and gas and mining. However, few of these consider, in particular, cuttings transportation in small size annulus space. The flow characteristics appear to be very different when slurry travels within a small size annulus, in particular when the fluid velocity is high. In this study, a review of some of the existing slurry flow loops will be conducted. Then the details of a slurry loop, which has been designed and commissioned for the purpose of studying cuttings transport in a small size annulus space for applications in drilling mineral exploration wells using coil tube technology, will be presented.

Aug 1, 2013

By B., Hoyaux

A first requirement for assessing the safety of a rock slope, either artificial or natural, particularly if the rock behaves in an elastic-brittle manner, is a proper knowledge of the distribution of stresses within the slope and their development with time and advancement of workings.

Jan 1, 1972

By Siobhan Quayle

Managing sediment plumes under multiple jurisdictions Management of activities in the New Zealand EEZ can be characterized as a distributed basis of decision-making with each independent and separate decision-maker focused on specific elements of a proposal (environmental, work place safety, wildlife management, fisheries, navigation, oil spill). The New Zealand EEZ Act 2012 was intended as gap-filling legislation to address the lack of an environmental assessment lens for permissions to undertake certain activities in the New Zealand EEZ. These activities relate mostly to marine scientific research, dumping and discharges, oil and gas exploration and development, and seabed mining. The regulatory decision-maker for most EEZ Act marine consents is the New Zealand EPA. Since 2013 when this gap-filling legislation took effect, the EPA and its decision- making committees have processed three seabed mining applications. Two consents were refused, one consent was granted in 2017. A common feature of all consents has been the assessment and consideration of the scale, significance and effects of sediment plumes arising from the activity. One consent is for irons and mining in about 40m of water where the plumes reach the nearby coastal waters and shoreline, the second consent is far offshore but plumes extend far beyond the mining area (850 km2) in to rare coral habitats and in to a significant offshore fishery. A significant consideration for decision-makers is how the assessment and management of plumes under the EEZ Act interact with, and potentially overlap, management of such plumes under other legislation (Resource Management Act, Marine Mammals Protection Act, and Wildlife Act). This is in a statutory context where the EEZ Act requires explicit consideration of the nature and effect of other marine management regimes over the matter under consideration.

Jan 1, 2018

By Paul A. Bailly

Geology is not the problem. Because of inflation, taxation, and politics more reserves are being reconverted to uneconomic resources than there are new reserves created by exploration and extraction technology.

Jan 1, 1976

By E. Chin

The Asia and the Pacific region has large mineral resources of antimony, barite, bauxite, bismuth, copper, fluorspar, gold, graphite, iron ore, magnesite, mica, rare earths, salt, talc and pyrophyllite, titanium, zinc, and zirconium. The region overall lacks large resources of oil and natural gas, but it has large resources of anthracite and bituminous coal. In terms of exploitation, many minerals, metals, and fuel are produced in significant quantities in the Asia and the Pacific region as shown in table 1. Collectively, the area accounts for a substantial amount of the world production of antimony, barite, bauxite, fluorspar, gold, graphite, ilmenite and rutile, iodine, iron ore, lead, magnesite, manganese, nickel, salt, tin, tungsten, and zinc. Total coal production of the region exceeds 1.6 billion metric tons. The production of bituminous coal accounts for more than 80 % of the total output. China is the region's largest coal producer, with an output of almost 1.1 billion tons. Other major producers are Australia and India. The combined production by Australia, China, and India is more than 1.5 billion tons or 93 % of the area's output. The remainder of the coal output in the region comes from Afghanistan, Cambodia, Indonesia, Japan, the Korean peninsula, Malaysia, Mongolia, New Zealand, Pakistan, the Philippines, and Taiwan. The production of crude oil throughout the Asia and Pacific region is close to 2.4 billion barrels. China and Indonesia together account for 67 % of the total output. The remainder of the output is primarily from Australia, Brunei, India, and Malaysia. Indonesia is the largest producer of natural gas in the region with an output of close to 58 billion cubic meters, followed by Malaysia and Australia with 23 and 22 billion cubic meters, respectively. Other producers in the region of lesser stature by output include Brunei, China, India, and Pakistan.

Jan 1, 1993

By D. S. Pye, J. P. Gallus

Successful hydraulic pressure treatment of oil and gas wells that have long producing intervals, multiple pay zones, fluid thief zones, or natural or induced fractures has long been a serious problem plaguing the petroleum industry. High fluid-injection rates, straddle packers, ball sealers, and either liquid or solid additives to the treating fluids are being used to cope with this difficult and costly problem.l-6 The use of ball sealers and straddle packers is limited, in practice, to wells that have been completed with perforated cemented casings or liners. Well stimulation with ball sealers and straddle packers is usually successful as long as the cement remains competent. The other techniques of diverting are used with all types of completions. However, there are two significant disadvantages of the high rate method: excessive horsepower requirements, and the need of large treating-fluid volume. Consequently, most well stimulation techniques that involve diverting depend upon ball sealers or granular materials. Liquid diverting agents, and some of the solid ones in use today, frequently will cause formation damage. On the other hand, the most popular particulate diverting agents often are so soluble in the treating fluid that they become largely ineffective; their particle size is severely reduced as they dissolve while being transported through thousands of feet of pipe to the formation face down hole. In our attempts to deal with the shortcomings of these diverting agents, we experimented with a large variety of potentially suitable deformable materials the solubility of which could be controlled. Following are the criteria for the diverting agent sought: 1. The material must be effective in reducing fluid loss to thief zones, including existing fractures and very high permeability layers in the formation to be pressure treated. 2. The material must have enough strength to bridge under the treating pressure. 3. The material must be insoluble or slowly soluble in the treating fluids so that the particles retain sufficient size to be effective after they reach the formation face. 4. The material must be completely soluble in the produced oil or condensate liquid so that it can be removed readily; it must not cause formation damage. A number of products consisting of various polymers blended with waxes and other solid hydrocarbons were examined. All these materials satisfied the criteria for a diverting agent and also exhibited some degree of plastic deformability. On the basis of initial tests of strength and hardness, several blends of wax and polymer were selected for extensive testing in the laboratory and the field. These compounds have congealing temperatures ranging from 140 to 190F; they are insoluble in water and soluble in oil. They conformed, therefore, to the criteria specified for a theoretically superior diverting agent. Laboratory and field tests were conducted using these wax-polymer materials to demonstrate that the use of a deformable diverting agent can significantly improve fluid diverting performance. Data in this

Jan 1, 1970

By Chris Pritchard

Falconbridge Ltd., a major base metal producer in the Sudbury Basin of Ontario, Canada, identified a need to find a safe and cost effective replacement for welded-wire mesh used to support loose ground during underground nickel mining. Safer and lower operating costs are a must to maintain mine viability in lower base metal price environments. Stringent material strength parameters were put in place to determine if a spray-on liner was acceptable for testing and application trials. Falconbridge Ltd. took a methodical approach to the concept of a spray-on liner as a screen replacement proving the strength characteristics of the liner as a safe, cost effective, and suitable method of supporting ground. Materials testing was undertaken at Laurentian University to further understand the capacity of the material Laboratory and field tests indicated excellent adhesion and good tensile strength. Further, it maintains significant tensile strength even after elongation of over 25%. Compact, hydraulic mixing and spraying equipment have been developed and successfully utilized in the Fraser Mine of Falconbridge's Sudbury Operations Currently the Tekflex material has been approved as a wire-mesh replacement and is undergoing full-scale production trials in selected locations at Fraser Mine.

Jan 1, 1999

By E. J. McCaustland

The behavior of steel after overstrain and at moderate temperatures is fairly well known. It has been made the subject of much investigation, and our knowledge is clear and definite on many points. The ultimate raising of the elastic limit, after moderate overstrain, and the consequent lowering of the ductility, seem to be well established. It is also well understood that the immediate effect of overstrain is to lower the elastic limit, possibly to zero, but that if not interfered with, this limit will subsequently rise higher than before. The " tests after moderate temperature," reported in this paper, were undertaken to verify the above statements for the particular steel under investigation, and also to determine, if possible, the total time required for complete recovery from this state of overstrain. The behavior of overstrained steel at temperatures at or below 32" F. is not so well known. Tests made by Prof. E. G. Coker, at McGill University,' show that steel, overstrained and subjected to cold, will remain in a state of overstrain for an indefinite period. I am not aware of any other published results of tests along this particular line. The effect of time and temperature on the recovery of steel from overstrain was made in 1902-3 the subject of some investigation in the laboratories of the College of Civil Engineering of Cornell University. A general plan was outlined in connection with the regular courses of instruction in testing of materials; but the press of routine work and the demands of the schedules on the time of the students were so great as to presage long delay in the completion of the work. Not much had been accomplished up to 1904-05, when Messrs. E. C.

Jan 1, 1907

By Peter N. Calder, Louise H. Michaud

"An interactive mine planning package has been developed to aid with the tasks involved in generating dragline mine plans. This package employs recent advances in PC-based,3D computer graphics and 3D geologic modelling. A Gridded Seam Model (GSM), capable of modelling rugged topography and multiple coal seams, including folding and faulting, is used to generate the geologic database This model is then integrated with an interactive graphics mine planning system in order to develop one model and one database for the generation of the mine design, the depletion of the coal reserves and the removal of waste material.As well as offering large potential saving in the time required to carry out the planning tasks, the system offers immediate visual feedback to the planning engineer. This can greatly aid in the conceptual understanding of complex geology and mine plans and can allow for the evaluation of a number of mining options within a reasonable time frame.IntroductionThere are a large number of variables that must be taken into account during the development of a dragline mine plan. This is especially true when developing a mine in mountainous terrain, where there is a lack of continuity of the geology and topography over the mine site. Until recently, the complexity of dragline mine plans has prohibited the development of a universal mine planning package that is applicable to all geologic and topographic situations. The majority of the commercial programs that are presently available to facilitate dragline mine planning have been developed for specific mine properties or are limited in the coal geology and mining methods that they can simulate (Brown and Clifford, 1983; White 1983; White and Jones, 1984; Sadri and Lee, 1982; Dagdelen, 1979)."

Jan 1, 1993

By Frank E. Chase

Clay veins, also referred to as clay elastic dikes, have been responsible for numerous underground injuries and fatalities. These hazardous structures are also responsible for increased production costs during all phases of mining. For these reasons, the Bureau of Nines has investigated the physical characteristics of and roof instability problems associated with clay veins in order to make support and other mining recommendations. In addition the occurrence and origins of clay veins were examined to determine whether or not the structures could be projected into unmined portions of the coalbed. This investigation included portions of the Arkoma, Illinois, Northern Appalachian, Southern Appalachian, and Uarrior Coal Basins. Virtually a11 clay veins observed or documented occurred in the Illinois and Northern Appalachian Basins. Observed clay veins ranged in sire from 1 inch to 16 feet In cross-section and were found under shale, siltstone, sandstone, and limestone roof rock. Individual clay veins were predominantly composed of claystone; however, limestone. siltstone. and sandstone infilled clay veins do occur. Clay vein formation has been associated with the infilling of fissures which result from compressive, tensile, or shear ground failures. These gaping fissures were propagated by compactional processes and/or tectonic stresses active during and subsequent to coal iff cation. Associated fault, fracture, and slickenside planes commonly parallel clay veins and disrupt the lateral continuity of the immediate and, sometimes, main roof. When clay veins parallel or subparallel the direction of face advance the roof is segmented into cantilever beams causing unstable conditions. Therefore, the strata on either side of the clay vein must be bolted and strapped together to form a beam.

Jan 1, 1984

By D P. Obeng, L Reemeyer, R Holmes

The Zinifex Century Mine employs a large number of Detritor mills for fine and ultra-fine grinding to liberate silica and sphalerite at 80 per cent passing 7.5 microns before final zinc flotation. A joint project between CSIRO Minerals and the Zinifex Century Mine was carried out to evaluate the Detritor mill performance. Plant surveys were conducted around the Detritors in conjunction with laboratory tests. The survey data showed that the Detritors in the ultra-fine milling circuit performed well. They reduced a feed F80 sizing of 46 microns to a product P80 sizing of 7.5 microns at a gross energy consumption of 37.2 kWh/t. Scale-up of ultra-fine milling Detritors was studied using a 0.55 kW laboratory batch unit and a 355 kW full-scale Detritor by processing Century zinc concentrate with 1 mm sand media. The results indicated that the 0.55 kW laboratory mill underestimated the energy consumption of the full-scale Detritor by about 20 per cent for a product P80 of seven microns. The performances of a horizontal IsaMill and a vertical Detritor were compared as ultra-fine milling devices for processing Century zinc concentrate. The experimental data demonstrated that, when using the same grinding media, the energy efficiency of the two mills is similar despite the difference in mill designs. The Detritors used for regrind duty at the Century Mine performed poorly when processing feed at 80 per cent passing 88 micron. The energy consumption was high and the product size distribution was broad with particles above 100 microns in the feed unbroken and particles below ten microns overground. A coarser ceramic media of 3 mm was therefore tested in a laboratory Detritor to process the regrind Detritor feed as an alternative to the 1 mm Colorado sand used at the Century Mine. The ceramic media reduced the energy consumption significantly and produced a narrower product size distribution, which is more desirable for the downstream flotation process.

Jan 1, 2007

By M. Gao

The Zinifex Century Mine employs a large number of Detritor mills for fine and ultra-fine grinding to liberate silica and sphalerite at 80 per cent passing 7.5 microns before final zinc flotation. A joint project between CSIRO Minerals and the Zinifex Century Mine was carried out to evaluate the Detritor mill performance. Plant surveys were conducted around the Detritors in conjunction with laboratory tests. The survey data showed that the Detritors in the ultra-fine milling circuit performed well. They reduced a feed F80 sizing of 46 microns to a product P80 sizing of 7.5 microns at a gross energy consumption of 37.2 kWh/t. Scale-up of ultra-fine milling Detritors was studied using a 0.55 kW laboratory batch unit and a 355 kW full-scale Detritor by processing Century zinc concentrate with 1 mm sand media. The results indicated that the 0.55 kW laboratory mill underestimated the energy consumption of the full-scale Detritor by about 20 per cent for a product P80 of seven microns. The performances of a horizontal IsaMill and a vertical Detritor were compared as ultra-fine milling devices for processing Century zinc concentrate. The experimental data demonstrated that, when using the same grinding media, the energy efficiency of the two mills is similar despite the difference in mill designs. The Detritors used for regrind duty at the Century Mine performed poorly when processing feed at 80 per cent passing 88 micron. The energy consumption was high and the product size distribution was broad with particles above 100 microns in the feed unbroken and particles below ten microns overground. A coarser ceramic media of 3 mm was therefore tested in a laboratory Detritor to process the regrind Detritor feed as an alternative to the 1 mm Colorado sand used at the Century Mine. The ceramic media reduced the energy consumption significantly and produced a narrower product size distribution, which is more desirable for the downstream flotation process.

Jan 1, 2007

By F. Habashi

In the period 1970-1995, a number of hydro metallurgical processes to treat copper concentrates to overcome the pollution problem due to S02 emission in smelters were developed. Pilot and commercial scale plants were built and operated for some time, but eventually all were abandoned a few years later. It is constructive to examine why these processes were abandoned after so much expenditure of funds and effort, so that errors should not be repeated in the future and lessons from the past are learned.

Jan 1, 2007

By W. O. Philbrook, A. H. Jolly, T. R. Henry

IN the course of a study of slag-control methods, the authors devised a laboratory technique by which the basicity of basic open-hearth furnace slap could be estimated with sufficient accuracy to make the method of possible interest for slag-control purposes. The process consisted of measuring the slight basicity of an extract of the powdered slag in water. The procedure was presented, for the benefit of those who might care to experiment with it, in a paper submitted in the 1944 McKune Award Contest and presented at the 1944 Open-hearth Conference in Pittsburgh.1 Interest expressed at that meeting and favorable operating experience with the method at a neighboring plant, as described in a related paper by Michael Tenenbaum and C. C. Brown,2 have encouraged us to present further details of the development, technique, and pitfalls of the method and some additional data not included in our first report. At the outset it must be admitted that this method of estimation of slag basicity is not perfect; neither is any other that we know of. It is subject to somewhat greater errors than would be desirable, but compares favorably with other techniques in this respect. It has the disadvantage that it places the final determination of slag basicity in the hands of a laboratory technician rather than the furnace operator, although it can be operated in a control laboratory adjacent to the furnaces. It requires close attention to certain details, as do most laboratory procedures. On the favorable side, it eliminates the "human factor" of personal judgment inherent in estimation from pancakes or powdered samples. The procedure can be placed in practice much more rapidly and presents much less of a training problem than visual methods of estimation. The principle and operation of the method are so simple that it would not be surprising if others have experimented with the same or similar procedures, but we are not aware of any prior publication of details. Our own shop has been operating fairly successfully for several years with the aid of slag pancakes. Since the past year or two have not been favorable for the expenditure of time and energy where the need was not urgent, we have not introduced the new practice for actual slag control and hence do not have extensive operating data. In presenting this method, therefore, we make no claims as to theoretical justification nor guarantees as to practical applicability, but offer it as an empirical observation. We believe it has sufficient merit to warrant its investigation by those just instituting a slag-control program or in search of supplementary methods for judging slag basicity PRINCIPLE OF THE METHOD It is well known that when burnt lime or slaked lime is shaken up with water it

Jan 1, 1945

By E. C. Barfield, D. G. McCarty

Two-dimensional analyses offer considerable promise in providing the basic information required to effect more precise control of petroleum reservoir performance. This paper describes a method for conducting some engineering analyses of this type using a high-qreed digital computer. The general approach is to (I) develop a representative numerical model of the reservoir and (2) employ a suitable numerical technique to solve the basic equation of flow and to develop the required engineering information for the particular case represented by the model. This technique has been used to calculate pattern performance in connection with several field projects involving water injection into oil reservoirs. This type of analysis involves sequentially (I) calculating the pres-' sure distribution in the reservoir and (2) tracking the progress of the interface between the displaced and displacing fluids in a step-wise manner to provide a depletion history of the operation. The particular analysis presented in this discussion is subject to the restriction that the mobility of the displaced and displacing fluids be equal and assumes that the fluids are incompressible and that gravity and capillary pressure do not affect the shape of the flood pattern. Complete two-dimensional .flexibility is maintained with regard to definition of reservoir rock and fluid characteristics, placement of physical restrains and boundary conditions, investigation of flow characteristics in the reservoir, and movement of the displaced and displacing fluid interface. The results of these studies indicate that the highspeed digital computer is well suited for conducting reservoir performance studies in two-space dimensions and that dependable numerical techniques are available for making such analyses. INTRODUCTION One of the problems facing petroleum engineers is that of providing more precise engineering control over reservoir operations at all stages during the depletion cycle. The most direct approach to this problem is to simulate the reservoir with some type of physical or mathematical model and use the information developed from the behavior of the prototype to predict the performance of the actual reservoir. This principle is, of course, not new, and a variety of simulation techniques have been developed to provide information on the behavior of oil and gas reservoirs. One straightforward refinement of present reservoir analysis techniques is the progress from one-dimensional reservoir models to those where the reservoir can be represented in two- and three-space dimensions. Multidimensional reservoir analyses are desired in order to show not only what is happening in the reservoir but in addition to show where in the reservoir the various phenomena of interest are occurring. Thus far, two-dimensional analyses have been confined predominantly to potentiometric and electrolytic model studies. However, when large numbers of wells are involved and where large-scale models are required, such problems become very tedious and instrumentation problems become acute." It is possible through use of numerical methods and general purpose digital computers to avoid many of the instrumentation difficulties and to relax some of the restrictions of previous techniques. The purpose of this paper is to discuss some recent experiences with the use of high-speed digital computers for predicting pattern performance in fluid injection operations and to describe the numerical procedures which have been used for making such analyses. THE NUMERICAL MODEL The problem of representing the reservoir with an appropriate numerical model is composed of at least two important considerations. The first requires that an adequate description of the reservoir mechanism be formulated in the form of the basic differential equation describing the process. The second consideration is definition of the physical characteristics of the reservoir. The latter requires that representative basic data be obtained, examined, and interpreted to provide sufficient detailed definition of the pertinent physical properties throughout the system. The Differential Equation One of the basic assumptions made for the purpose of performing the two-dimensional studies being dis-

By R. W. Raymond

I have the pleasure of exhibiting samples of the rock in which the South African diamonds are said to occur, for which I am indebted to Mr. Franz Groeger, of Vienna, formerly an assistant of the Royal Imperial Geological Institution, whose account of the general geology of Southern Africa was contained in a recent number of the proceedings of that Institution. The rock is apparently a sort. of tufa, evidently of volcanic origin. Mr. Groeger assured me that it could be seen in situ, bounded by uplifted stratified rocks; and that diamonds had been mined from it, by means of shafts, some distance below the surface. Groeger calls it " greenstone-tufa," and says of it, in the proceedings of the Geological Institution, " it breaks through the younger members of Group III [lower Trias and Jura], .... and crops out in oval masses, filling fissures.....The occurrence of this tufa is not locally limited, but has been traced and proved already over a large territory." Dr. Hunt remarked that the material looked like the trass of the Rhine region. He thought it a new occurrence for diamonds. He believed diamonds to belong to ancient crystalline rocks, although these materials might be brought up by volcanic agency, and the diamonds remain unaltered. In the volcanic rooks of Auvergne, crystals of sapphire, zircon, and spinel are found; and yet no one supposes that these minerals have been generated by volcanic agency. He had had a conversation with Bertrand de Lorn on this subject, who agreed with him that these minerals, being hard and resistant,

By Gordon Sparks, Lyle Kajner

"An often over-looked component in the assessed value of a mining property is the value derived from the ability of the operator to limit financial losses during adverse economic times (i.e. low market price, high energy prices, etc.) by suspending operations. Overlooking the value of this type of operating flexibility when conducting mine investment analysis may negatively bias the risk profile for the investment by over estimating the investment's downside potential, thereby effectively undervaluing the investment. This paper illustrates the nature of the value of operating flexibility and discusses how it may be explicitly quantified within the context of conducting stochastic mine investment analysis. IntroductionMining properties are evaluated using an array of techniques ranging from simplistic non-discounted payback calculation s to sophisticated, discounted-stochastic simulation. Stochastic simulation analysis is perhaps the most robust mine investment analysis technique as it not only provides an estimate of the expected value of the property, but also quantifies the associated risks (for examples of stochastic mine investment analysis, see: Billingsley and Yaychuk, 1986; Gentry and O'Neil, 1984; Munro, 1977; or Harris, 1970).The quantification of risk is important as it provides the necessary yardstick required to allocate the corporation's resources efficiently. Resources are said to be allocated efficiently when the corporation's expected long-term financial reward is maximized while at the same time minimizing its risk (see Hertz, 1968; or Markowitz, 1952 for in depth discussions on efficiency as it relates to investment policy). The efficient allocation of resources should be the objective of any rational corporation. Therefore, rational corporations should employ stochastic evaluation techniques when screening their investments."

Jan 1, 1992