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

Jan 1, 1994

By P Revell, B Adair, D King, L Keeney

Grade Engineering®, integrated across the mine value chain, has a pivotal role to play in achieving step change reductions in energy and water usage in mine operations. High levels of gangue rejection in the mine can significantly improve mineral head grades and overall productivity. A highly successful example is described at the Minera San Cristóbal (MSC) operation. The nature of the mineralisation in their “intrusive” ore domains in particular has facilitated high rejection rates (75 % of the mass), with significant upgrading of metal to the “accepts” streams (equating to a 2.6 times upgrade in the intrinsic Nett Smelter Return). Results from a series of production trials have confirmed these strong upgrades, resulting in the transformation of mineralised “marginal wastes” to high grade ore feedstocks. If new approaches to more energy and water efficient comminution and separation technologies can also realise gangue rejection at finer sizes in the concentrator, then preconcentration strategies across the value chain also offer the promise of no wet tailings treatment facilities and greatly reduced volumes of waste streams. This “No Tails” strategy is discussed, along with the integrated technologies needed to realise its effect. The work suggests a pathway and insights of a sustainable future for the Minerals Industry, unconstrained by Energy and Water, along with no requirement to produce problematic disposal streams. This strategy has the potential to significantly reposition the social, environmental, financial, and regulatory context of existing and new mining opportunities.

Nov 10, 2020

By Nan Wang

Based on the commercial computational fluid dynamics software, Fluent, the fluid flow and temperature field in an iron-bath reactor were simulated numerically, and the effects of top-blown and side-blown operating parameters on the mixing time of iron bath, distribution range of oxygen in top space, and post-combustion ratio were investigated. The simulated results showed that the mixing time of iron bath increased initially and then decreased with the increase of inclined degree and immersion depth of side-blown lance. The distribution range of oxygen became wider as pulling the top lance away from the iron bath. Furthermore, post-combustion ratio was reduced given the top lance was too close the bath. The simulation results provide theoretical base for the process optimization of iron-bath reactor and further development of new type iron-bath smelting reduction process.

Jan 1, 2009

By R. B. Krog

The use of belt air as an intake source at longwall operations has changed greatly over the past decades. The practical considerations for the use of belt air are controlled by a variety of factors, including airflow quantity and velocity, coal methane content, methane desorption rates, coal mining rate, belt length, stopping leakage and the number of gateroad entries. At longwall operations, the advantages and disadvantages of belt air are different than for gateroad development and longwall panel extraction. During gateroad development, the use of belt air to ventilate the working section will reduce the leakage from the intake to the belt compared to the belt air being ventilated outby the working sections because of lower pressure differentials. A greater quantity of airflow will reach the last open crosscut with the belt on intake than outby, given the same amount of pressure and airflow available at the mouth of the section. This paper will investigate the current ventilation practices regarding the use of belt air during gateroad development and longwall panel extraction. Operating considerations regarding air quantities and pressures to deliver the required airflow will be investigated using ventilation network modeling.

Jan 1, 2010

By Samuel H. Dolbear

THE value of a mine is basically dependent on its capacity to yield profits. Since the ore must be mined, treated, and sold, some of it in various future years. there is a risk involved as to future costs, selling price, and working conditions. It cannot be expected that the economic condition existing at the time of valuation will continue unchanged for long periods in the future. During the past 20 years, mineral production in the United States has been conducted under a changing economy in many respects more exacting than that applied to other businesses. There have been increased production incentives, technical aid, exploration of privately owned mineral deposits by government at federal expense, and liberal loans for development and equipment, with risk partially assumed by government.. Some of these benefits have been counterbalanced by price ceilings, consumption controls, and stimulation of competition from foreign producers who have been offered the same advantages extended to American operators. For the present, mines will operate under a government policy directed toward reducing federal aid and control. The tenure of this change will depend upon future elections and the status of foreign relations. War and threat of war are now of the most vital significance to the mineral industries. Other factors which influence cost of production, markets, and price of mine output might be classified as Acts of God or Acts of Government. In some countries expropriation and the difficulty of exporting earnings or investment returns are risks that must be considered by foreign capital. Recognizing that this retards American investment in foreign countries, the Mutual Security Agency offers insurance against such expropriation and guarantees the convertibility of capital and profits. Since it is impossible to predict with certainty either cost of production or selling prices of metals for long periods, some assumptions must be made as to profits in the future. The basic assumption must be that the price of the company's product will vary in proportion to changes in operating cost. There is often a lag in this reaction, however, for prices of minerals are generally more sensitive to declines and less sensitive to increases than are costs. This reflects in part the resistance of labor to downward wage revision and a corresponding alertness in realizing its share of price advances. Some labor contracts include automatic adjustments to metal prices. Notwithstanding the complexity of the, problems involved and the difficulty of weighing their effect on value, such risks may be appraised with reasonable accuracy and a rate of earnings adopted that is compatible with the risk. It is, of course, possible to revert to a yardstick of value such as the commodity dollar, which has been advocated from time to time, but while revaluation in 1933 disturbed public confidence, the theoretical gold dollar continues to be the standard of greatest stability. Its gain or loss in purchasing power is reflected ultimately in cost of production and selling price of the mine product. At present 35 dollars are allocated to one ounce of gold. Measurement of Risk In the application of the Hoskold and most other formulae, a yearly dividend rate commensurate with the risk involved is set aside out of annual earnings. If the risk is great, this rate may be 15 to 25 pct of the amount invested. The remainder is placed in a sinking fund invested in safe securities such as high grade bonds or conservative equities, and the interest or dividends from these securities are added to the sinking fund. The sum of these sinking fund payments and the compounded interest at the end of the mine life is taken as the value of the mine. Admittedly the decision as to the size of the risk rate is the most difficult element in valuation and one requiring the most exacting consideration. It is necessary to look years ahead in an effort to determine future costs, market prices, demand, competition which may develop, including that of substitutes, and other influences common to the mine and to the region in which it is situated. Another phase of risk is the enactment of unfavorable legislation, taxes, and what appears to be an alarming spread of nationalization and expropriation. Capital is sometimes borrowed from the government to finance strategic production. Such loans may be collectable only out of production and involve no liability otherwise. Valuation in these cases must recognize the effect of such a reduction in liability. Offsetting some of these risks are the possibilities of mechanization and other cost-reducing discoveries, improvements in mining and treatment methods, new uses for minerals and metals, and normal growth of markets. In this paper, the terms risk rate, dividend rate, and speculative rate are synonymous. Safe rate and redemption rate are also used interchangeably. These alternatives are used here because they are commonly found in the literature on mine valuation. In Michigan, the State Tax Commission has long employed a risk rate of 6 pct in its valuation of iron mines. There the outline of reserves is well established and operating costs and conditions are based on adequate experience. The following comment on rates appears in the report of the Minnesota Interior commission on Iron Ore Taxation submitted to the Minnesota Legislature of 1941.1 Most engineers agree that 7 percent for the specu-lative rate is "an absolute minimum". C. K. Leith in

Jan 1, 1954

By Cheng Lin

The Group Equivalent Pile (GEP) approach was proposed by researchers to analyze a laterally loaded pile group. This approach enables engineers to evaluate the behavior of a pile group in single pile analysis software, such as LPILE. A previous study showed that the calculated results using the GEP approach for piles agreed well with field test data. To evaluate the accuracy of the GEP method for analyzing laterally loaded shafts, two case studies with different shaft diameters were performed in this study. The comparisons showed that the calculated results using the GEP method and considering the contribution of the shaft cap if embedded generally agreed with the measured from the full-scale tests.

Jan 1, 2009

By M. Ye. Scheglov, G. I. Voiloshnikov, S. M. Ryakhovsky, V. E. Dementyev, V. N. Alekseev, N. S. Voiloshnikova

Irgiredmet has substantial experience on RIP and RIL technology for gold recovery, having started development of ion exchange technology in 1964. Irgiredmet specialists were involved in the majority of RIL and RIP projects in the former Soviet Union and Russia, and took part in commissioning of practically all plants using ion exchange technology. Laboratory and pilot plant tests were conducted to develop process design criteria for designing 15 RIP plants of the former USSR using bifunctional macroporous anionite AM-2B or its analogs. This paper is devoted to the laboratory, pilot plant testing and introduction of RIP technology conducted in cooperation with GC Pertopavlovsk. Medium base resin PuroLite S992 (PuroGold) was used as adsorbent. Some adsorption regularities and the affinity of resin to metal cyanide complexes were studied. Laboratory batch and continuous pilot tests on resin-in-pulp process were held for oxidised ores from Pioneer, Albyn and Malomyr mines (Amur region, Russia) owned by the Petropavlovsk company. A simplified flowsheet for gold elution and resin regeneration was developed. Alkaline cyanide solution was used as gold eluent and gold was recovered from eluates by electrowinning. Process design criteria were developed on the basis of the testwork results, and the plants were designed and constructed by GC Petropavlovsk. The RIP plant at Pioneer was commissioned in May 2008, at Malomyr in August 2010, and at Albyn deposit in December 2011. These plants are currently in operation at design performance at throughputs from 3 to 6.5 Mt/year. The primary gold ores of Pioneer and Malomyr deposits are refractory to cyanidation; Irgiredmet also completed continuous testwork on RIP technology using medium-base resin for pressure oxidation (POX) residues derived from their flotation concentrates. In 2019 a hydrometallurgical plant for the treatment of refractory gold concentrate after POX was commissioned at Pokrovsky mine (Amur region). Keywords: Gold ores, cyanidation, RIP, RIL –processes, ion exchange resin, medium base resin, adsorption, elution, electrowinning

Jan 1, 2020

By Lawrence F. Rooney

One of Edgar Allan Poe's stories that haunts my subconscious is the Masque of the Red Death. These days, whenever I join a group like this, especially during the cocktail parties, I see myself and others as those mythical swingers seemingly isolated from the plague. The world, but this country especially, has had a ball plundering, spending, and wasting its natural resources for 100 years. And, as in days of yore, it is fitting that we end this ball with spectacular fireworks: trips to the moon, so that our grandchildren, huddled in their caves along the Ohio, will better understand how it all began.

Jan 1, 1970

By R. Mensah-Biney

The adsorption of gold-thiourea complex onto a cation exchange resin, Amberlite 252, has been evaluated in a batch stirred reactor. The observed non equilibrium saturation capacity was 3.20 meg Au/g dry resin (620 kg/t) whereas the equilibrium ion exchange capacity was only 0.53 meq/g (103 kg/t). The enthalpy of adsorption was 4 -25 kJ/mole under equilibrium conditions and increased to 20-200 kJ/mole under non equilibrium conditions. Under non equilibrium conditions, the adsorption capacity of the resin decreased with increasing temperature and increasing thiourea concentration and increased with increasing gold concentration. This dependence of adsorption capacity on thiourea concentration and temperature may be a useful tool for elution of gold from the loaded resin. Scanning electron microscopy revealed evidence of deposition of elemental gold on the loaded resin under non equilibrium conditions. The proposed mechanism for "adsorption" of gold-thiourea complex onto this cation exchange resin consists of an ion exchange reaction followed by a reduction of the exchanged gold complex to elemental gold on the surface of the resin.

Jan 1, 1997

By R. R. Fernández

The Newmont roasting plant in Carlin, Nevada, commenced operating in December 1994. Over the years, refractory ores and pyrite concentrates from different gold deposits constituted the feed to the facilities. Historical plant performance indicated that the roasting temperature was the main variable affecting the structural characteristics of the calcine, which in turn affected the recovery of gold by cyanidation. Gold recovery as a function of roaster temperature has been closely monitored since October 2000. The original design temperature was 550° C. Lower roaster temperatures of around 500° C resulted in a gold recovery increase of more than six percent. This increase was directly related to an increase of the surface area of the calcine. The implementation of an ?intelligent? process control system helped significantly in achieving steady low roasting temperatures, thus obtaining high gold recoveries of 92 to 93 percent. Under these conditions, several roasting campaigns with high-arsenic-containing ores were conducted, which resulted in a significant decrease in gold recovery. The reduced gold recovery was caused by the loss of surface area (e.g., porosity) of the calcine as the arsenic content of the roaster feed increased.

Jan 1, 2010

By S A. Steyn, P Terrett

Air decking has become a widely practised method internationally for modifying fragmentation results and providing cost savings from reduced explosive consumption. Duvha has been applying air deck technology to overburden and midburden blasting for a few years. A thorough evaluation of air decking at Duvha has been made by instrumenting a number of blasts and analysing costs from direct savings in reduced explosives costs to savings in improved dragline productivity.

Jan 1, 1995

By M. O. Pekguleryuz, D. S. Aydin

The high temperature oxidation and ignition resistance of Mg-(0-6) wt% Nd alloys have been investigated via isothermal and continuous heating experiments conducted in air atmosphere. Alloy composition is observed to be effective in low levels (~ 0.5 %) in the ignition temperature (Ti) of the alloys; the Ti of pure Mg increased from 630 °C to 770 °C with 0.5 wt% Nd addition. However, no noteworthy improvement was achieved with further additions up to 6 wt% Nd. The initial microstructure was observed to determine the oxide structure on the surface due to the differing oxidation behavior of the phases (a-Mg + Mg12Nd intermetallics). It has been found that the formation of a Nd-depleted region at the subsurface due to extensive Nd oxidation at the oxide/intermetallic interface lowers the protective ability of the oxide scale.

Jan 1, 2015

By Richard E. Sylwester

Evaluating surface and subsurface conditions for marine foundations (bridges, causeways, terminals, etc.) is often done with a limited amount of data. Subsurface information for these projects is primarily acquired using traditional methods, such as boreholes, test pits or divers, which tend to be expensive and limited in the area of coverage. A number of geophysical methods, including precision bathymetry, sidescan sonar, and seismic reflection or subbottom profiling are extremely cost-effective and obtain significantly more data than can be acquired using traditional intrusive methods. These geophysical methods provide detailed surface images and continuous profiles of the subsurface stratigraphy. This information can be invaluable for selecting the best location for geotechnical boreholes and to map potential geohazards such as submarine slides and filled or open scour holes. Offshore investigations conducted for a proposed highway bridge (Knik Arm Bridge, Cook Inlet, AK), the retrofit of two existing bridge (Antioch and Dumbarton Bridges, CA) and a proposed cruise ship terminal (Ketchikan, AK) used a combination of geophysical methods to map water depth, detect and map debris on the seabed, map the thickness of unconsolidated sediment, determine the depth to bedrock and identify potential geohazards such as scour holes. The results of the geophysical investigations will be used to select locations for obtaining geotechnical borings, to extrapolate geologic information between existing or proposed boreholes, evaluate the potential depth of scour and design a pile support pier. Geotechnical engineers, offshore contractors and bridge designers are realizing the importance of the early use of offshore geophysics for (i) site characterization, (ii) to reduce the uncertainty of geotechnical conditions thus avoiding designs that may be overly conservative and thus more expensive and (iii) to assist in selecting locations for geotechnical borings.

May 11, 2007

By K Muller, T Oosthuizen

Blast exclusion zones are instrumental in protecting equipment and personnel. When there is no constraint in footprint, the exclusion zone can be enormous, practically eliminating the hazard of flyrock. Unfortunately, this may not always be the case and in many circumstances the blast design needs to be altered to suite such scenarios. When a conservative design approach is taken, it could completely eliminate any form of ejection, whether it is from the free face or the bench itself. The degree to which typical flyrock models describe fragment motion through air with ballistic flight equations are not justified when such a high level of control is applied. This paper examines various methods of risk analysis and suggests an approach to be used for controlled blasting.The outcome of principles discussed in this paper can be seen in video form (Mavmedia, 2014).CITATION:Muller, K and Oosthuizen, T, 2015. Should the blast exclusion zone be based on a qualitative or quantitative analysis? A practical implementation conundrum, in Proceedings 11th International Symposium on Rock Fragmentation by Blasting, pp 425–428 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 24, 2015

By Qing-hua Tian, Xue-yi Guo, Fei Li

A novel process for the preparation of a-Al2O3 from secondary aluminum dross was studied. Factors including alkali dross ratio, salt dross ratio, smelting temperature, smelting time, leaching temperature, leaching time, and the solid-liquid ratio, which possibly influence the transfer of Al into water were studied, and the feasibility of using seed precipitation as a treatment technology of the leachate was discussed. The optimum condition of the process was determined as: alkali dross ratio 1.3, salt dross ratio 0.7, smelting temperature 500°C, smelting time 60min, leaching temperature 60°C, leaching time 30min, solid-liquid ratio 1:4. The results show that using the seed precipitation method, the leaching of aluminum reaches 92.71%, demonstrating the technique as a feasible and effective treatment technology of the leachate.

Jan 1, 2011

By Murray Jacobson

The Federal Coal Mine Health and Safety Act of 1969 established mandatory dust sampling of coal mines according to procedures prescribed in the Mandatory Health Standards, title 30, Code of Federal Regulations, part 70, published in the Federal Register on April 3, 1970. A laboratory was established in the Pittsburgh Field Health Group of the Bureau of Mines to process the coal mine dust samples collected by the mine operators. This paper describes the laboratory and presents the equipment and procedures used in processing these samples.

Jan 1, 1971

By J. Murray Riddell, George A. Morrison

THIS paper is a companion to the one by George A. Morrison on Mining a Deep Limestone Mine in Ohio.[+] Barberton is 8 miles west of Akron, Ohio, and 23 miles south of Cleveland. The underground mining of limestone at Barberton constitutes the world's deepest limestone mine. The stratigraphy is as follows: 0-20 ft. Loam, clay, sand and gravel. Water bearing. 20-40 ft. Fractured. sandstone. Water bearing. 40-110 ft. Sandstone with interbedded shale, slightly fractured. Water bearing. 110-314 ft. Sandstone with interbedded shale, slightly fractured. Water carrying. 314-2197 ft. Shale with occasional seams of sandstone, which varies in thickness from a few inches to 4 feet. Dry. 2197-2247 ft. Limestone. Dry. 2247-2742 ft. Dolomitic limestone. Dry. 2742-2767 ft. Salt. Dry. 2767- Dolomitic limestone. Dry. All of the strata dip to the southeast, about 0.5 per cent from the horizontal. The top 110 ft. of the crust is water-bearing. The rock strata are naturally fractured to a depth of 314 ft., sufficient to allow the passage of water. In the shaft-sinking operations, a stra was encountered at a depth of 520 ft., and flows of methane gas were pierced at depths of 1350 and 1952 feet. Specifications for the mine plant called for, in part, the sinking of two vertical shafts and a hoisting plant capable of producing at the rate of 300 tons per hour. No. I shaft is 550 ft. west of No. 2 shaft. Each shaft measures 8 by 17 ft. outside of steel. General features of the design (Fig. I) are: Principal set members, 6-in. H-section; connecting angles (studdles), 3/8 by 4 by 4-in. angle irons; spacing of sets, 8 ft. centers; spacing of bearer sets, generally, 160 ft.; bearers, of 12-in. I-beams. Each bearing set featured a concrete ring about the periphery of the shaft, steel to rock, and 8 ft. in height; permanent guides, 6 by 10-in. long-leaf yellow pine, 85 per cent heart. THE SHAFT-SINKING OPERATION The preliminary shaft-sinking work consisted of driving interlocked steel piling about the exterior of the shafts to depths of 35 and 32 ft., respectively, and of such horizontal dimensions as to ultimately permit the pouring of a concrete collar 2 ft. in horizontal thickness. Following the pouring of a shaft collar, a temporary wooden headframe for shaft-sinking purposes was erected. The head-frame, while ordinary, featured: (I) a storage pocket of 300 cu. ft. capacity with truck servicing facilities, and (2) pneumatically operated dump doors, which were actuated by the hoistman, thus caring for the dumping of the "ball-and-chain"

Jan 1, 1944

By M. Redfearn

"DUST COLLECTION EQUIPMENT LIST Primary Dust CollectorModular Mikro-Pulsaire - Model 2G1-96TR Capacity: 20,000 c.f.m.Bags: Total of 288; 8' x 4 1/2"" diameterMaterial: Dacron HCE feltAir to cloth ratio: 7.55/1Bags are changed every 6-9 months. Sent to A & L Services for cleaning at a cost of less than 1/3 the price of a new bag. No new bags have been required since start-up 4 years ago.Blow hack: 35 c.f.m. at 100 p.s.i.Fan: Joy Manufacturing, Model 3300, Type 4S, Backward inclined fan.Impeller: 33"" diameter36"" diameter Inlet33"" diameter Outlet at 3200 f.p.m. velocity1945Motor:,60 H.P., 1780 r.p.m.Capacity: 23,400 c.f.m.Design:,20,000 c.f.m.,•Actual:,17,500-19,000 c.f.m. depending on bag condition.Dust Slurry Agitator: Port-a-flo Model 050-350Major Maintenance:The fan was sped up from 1830 to 1945 r.p.m. and balanced at the higher speed. Several months later the impeller destructed beyond repair. A new shaft and impeller was installed, casings straightened, and bearings reused. Unit is currently running at 1945 r.p.m. No definite cause for the impeller failure has been found, although it might be attributed to improper balancing."

Jan 1, 1976

By G. Duncan, K. Winther, R. Ericsson

Distinct trends in grinding mill technology have emerged in recent years. In an effort to optimize overall mill performance for the needs of the End User, broad measures of logistical speed, process flexibility, operational risk, and overall costs now exert greater influence on the specification of grinding equipment. As a result, innovative alternatives to conventional grinding mill structures, supports, drives, feed, and discharge configurations are now being offered and selected with greater frequency. This paper investigates these trends in grinding mill technology, utilizing optimization and decision-theory techniques. In particular, the paper considers how specific advances in process design, product engineering, manufacturing techniques, and mining operations continue to relax technological constraints, enabling further mill innovation. In this context, a methodology is presented, illustrating how proper selection and specification of grinding mill components and configuration can target an optimization of the four End-User performance measures listed above.

Jan 1, 1999

By M. Gonçalves Peixoto da Silva, E. Rodrigo Carvalho Souza Siqueira

Mining in narrow veins is commonly applied for precious metals, generally carried out to extract gold in underground mines, due to the ore occurrence on narrow veins, mainly up to 2-meter large. The current work presents the implementation of the methodology in a zinc mine located in the state of Minas Gerais in Brazil. The Vazante Mine through the years has always carried out mining on stopes with a thickness larger than 3,5 meters, but nowadays due to the need to reduce the waste planned in its blocks, as well as increase the useful life of mine, mining has been implemented in blocks that are less than two meters. Given this, the challenge is to be able to carry out blasts that does not exceed the operational dilution required and does not generate an impact on recovery, as working with extremely heterogeneous stopes. This study seeks to correlate the main characteristics of stopes and its relationship with the results obtained in the execution of those blasts. Also, it proposes an analysis between the empirical data, and existing theoretical references, creating ideal mining parameters, such as minimum thickness, maximum height, and optimum timing in the blast plan. One of the main challenges for carrying out this mining method is the control of operational dilution, generally pointed out as the biggest difficulty for companies that adopt this methodology, due to the thickness of those stopes, any displacement can make it unfeasible, thus the technical level on carrying out the drilling and loading of these blocks must be impeccable, an understanding of the structural geology of the site is also essential for dilution control. The outcome will be a set of ideal parameters and mining methodology to guarantee the success in execution of these blocks, thus bringing a financial benefit to the company.

Jan 21, 2025