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By S. M. Rupprecht

"SynopsisThis paper is intended to document recent personal thoughts, opinions, and debate around the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code) (2009) and its current usage by Competent Persons. Admittedly, some debates are as old as the SAMREC Code itself and have been ‘parked’ as no consensus could be reached by members of the SAMREC Working Group.Some of the more critical issues currently under examination are the definition of Competent Person and the potential registration of Competent Persons, the current re-write of the Code, and the introduction of reporting of Exploration Results, Mineral Resources, and Mineral Reserves on an ‘If not – why not’ basis, noncompliance with the Code and discipline, the role of the Johannesburg Stock Exchange Readers Panel, and the valuation of mineral assets based on scoping studies.IntroductionThis paper is intended as a personal memoir of recent thoughts and debate around the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the SAMREC Code) (2009) (‘the Code’). Admittedly, some debates, such as reporting of Mineral Reserves inclusive or exclusive of the Mineral Resource, are as old as the SAMREC Code itself and have been ‘parked’ as no consensus could be reached by members of the South African Mineral Resource Committee (SAMREC) Working Group. The author, who has been involved with the SAMREC Working Group since 2007, offers observations in his personal capacity as a professional mining engineer with the intent of getting practitioners to contemplate the influence of the Code on the mineral industry. Current practices in the compilation and reporting of Exploration Results, Mineral Resources, and Mineral Reserves are often deficient in adhering to the Code and a conscious effort must be made by the mining sector to improve the standard of public reporting, in particular Competent Person Reports (CPRs) and Public Reports issued by listed mineral exploration and mining companies."

Jan 1, 2015

"What is your assessment of the minerals business?My experience with mining has been primarily in the coal sector until about 10 years ago, when I also became heavily involved in the aggregates and industrial minerals sectors. I have also had peripheral involvement through family and partners in the gold sector, with just enough exposure to gold to become fascinated. In 1994, I visited Ghana and considered the possibility of taking an expat assignment at a surface gold mine that had just been started.It is not news that the coal sector in this country has suffered tremendously in recent years. Especially hard hit is the central Appalachian region, where a number of factors combined have had a devastating effect on production, jobs and the economy. These factors include federal regulations affecting coal production and use, higher production costs and decreasing market share of Appalachian coal by the switch from lower sulfur coal in favor of lowercost, higher sulfur coal from the Illinois Basin, as utilities have installed scrubbers to comply with Phase II of the 1990 Clean Air Act Amendments. Nationally, the lower cost of natural gas has been a huge factor affecting coal use. In Kentucky, for example, which exports to other states around 70 percent of its coal, those markets are disappearing, as utilities close coal units in favor of natural gas. This is a structural change in the electricity market, and one that will become more pronounced as federal greenhouse gas regulations are implemented.We often hear the phrase, "the war on coal." While there are certainly a number of market factors affecting coal production and use, this phrase captures a different element that is all too real. The attacks have come from environmental activist groups for many years; from some in the media and, in the last few years, from a White House administration that believes strongly in alternatives to coal. Then, there really is an alternative to coal in the form of the previously untapped unconventional gas reserves that allowed utilities to move away from coal.Coal mining will continue in this country. In fact, it appears that our production is holding fairly steady at about a billion tons a year. And predictions that I have seen indicate this will continue for the next few years. What impact the Environmental Protection Agency’s Clean Power Plan will have beyond 2020 is another question.What do you feel is the future of the minerals industry - near term and longer term?Our society depends on the future of minerals in this country being strong. Near term, we are going through some of the typical cycles. Having also been involved in aggregates during the last few years, the business follows government infrastructure projects, such as highway construction and public and private sector development. Those sectors are heavily dependent upon government spending and a strong economy. Increased spending in those sectors, which appears to be on the horizon, should provide additional market shares for aggregates."

Jan 1, 2014

By Dominic Parmantier, Jason Page

"In the past, the designers of DSM have analyzed various failure modes and then specified a minimum unconfined compressive strength (UCS) for the soil-cement. The specified minimum UCS reflected the compressive stress in the soil-cement under design loads and an appropriate factor of safety. With the increased use of finite element analysis for the design of DSM applications where allowable strain as well as stress are considered, there is a growing trend for designers to specify a modulus and occasionally a tensile strength for the soil-cement in addition to the UCS. This paper compares the relationship of modulus and tensile strength to UCS for soil-cement from a recent DSM project with unique testing requirements. These results are compared to published data. The case is made that designers should utilize published relationships to characterize the required strength and stiffness by a single acceptance criterion: UCS.INTRODUCTIONAs the use of DSM has increased in popularity so has the use of service state deformation analysis in lieu of more traditional failure mode analysis. Most DSM designers are interested in the appropriate modulus values and occasionally tensile strength values of soil-cement as well as simply the unconfined compressive strength (UCS) of soil-cement.Although there are numerous published correlations between the UCS, tensile strength and modulus of soil-cement, some DSM project specifications are produced which have acceptance values for tensile strength, modulus, and UCS. If this specification of multiple strength properties is consistent with the nature of soil-cement, then there is really no harm except for the expenditure of client money on unnecessary testing. If however the multiple strength properties specified are inconsistent with the material properties of soil-cement, then the specifications can create the expectation that the DSM contractor can somehow create a custom soil-cement with tensile strengths and modulus characteristics which are unachievable.This paper presents a brief summary of a project in Burnaby, B.C. which specified minimum values for the tensile strength, modulus, and UCS of the soil-cement. A comparison of those test results to published correlations between the UCS and the tensile strength is presented. Additionally, a comparison of modulus derived from two different methods of testing is presented along with a comparison to published correlations between UCS and modulus for soil-cement."

Jan 1, 2015

By Osamu Takai, Yoshiki Sato, Nobuhiro Tajima, Hiroyuki Sugimura

"Amorphous carbon thin films doped with nitrogen ( a-C:N) have been synthesized by means of shielded arc ion plating (SAIP). Their electron field emission properties, that is, threshold field strengths for electron emission and maximum emission current densities, were evaluated and compared with those of pure amorphous carbon (a-C) films prepared by the same SAIP apparatus. Among all of the fabricated a-C:N films, the a-C:N films with a N concentration of 23 %, which prepared using Nz arc plasm at a pressure of 1 Pa with applying a sample bias voltage of -100 V, showed the lowest threshold filed of 13.4 V/µm and the highest emission current density of 1.87 µAfcm2 at a field of20 V/µm. These field emission properties of the a-C:N film were much better than those of the a-C films. The best results obtained on the a-C film in this study were the lowest threshold filed of 15.5 V/µm and the highest emission current density of 0.052 µA/cm2 at a field of 20 V /µm. Nitrogen doping to aC was found to be effective for lowering threshold voltage for field emission and for increasing emission current density. The electron field emission characteristics of the a-C:N films depended not only on N concentration but also on chemical bonding state of nitrogen in the a-C:N films. The presence of the ~-C3N4-like phase, which contributes to improve wear resistance of a-C:N as well, distinguished by the NlsXPS peak at 400.5 eV is proved to be crucial in order to enhance field emission properties of a-C:N.IntroductionThere has been much interest in electron field emission from a cold cathode due to its potential applications in vacuum microelectronic devices including field emission displays which are expected as flat panel displays in next generation [l]. It is well known that efficient emission can be rather readily realized using tip-like shape cathodes, e.g., microfabricated three-dimensional electrodes [2], carbon nanotubes [3-5], etc. However, electron emission from planar surfaces is of particular importance since such a type of cathode is· simply fabricated and assembled into microelectronic circuits. Currently, amorphous carbon thin films doped with nitrogen (a-C:N) prepared by plasma processes have attracted attention because their threshold voltages of field emission are relatively low [6]. Among various methods for preparing a-C:N films, the process using arc plasma is of special interest since, in arc plasma, nitrogen is highly activated and new types of carbon nitride phase are expected to be synthesized. However, field emission properties of a-C:N prepared by arc plasma have been studied in less detail compared with that prepared by the other methods such as sputtering."

Jan 1, 2000

By Lloyd Litwin

The ARTA 2008 Project (Alpha Ridge Test of Appurtenance) was a Canadian Government sponsored deep water seismic survey carried out on the high arctic permanent polar ice cap. This Geological Survey of Canada operation was the second seismic research project in the high Arctic and was monitored by the Danish Government. Utilizing 100% air support from Eureka and then helicopters from an ice based tent camp north of Ellesmere Island, the five week study was accomplished in the early spring just after the sun returned to the far north.

Jan 1, 2011

By V. Estrada, G. Aguilera

"Since the most of mineral processing are wet, and for more specific applications where it is necessary to increase the purity through leaching and / or concentration, the proper dispersion is the first, and perhaps more crucial stage in the whole chain of processing. This specific process is based on the formation of a dispersion or suspension of mineral, trying to make the mixture as homogeneous as possible, and with specific rheological conditions. Sometimes it is not enough agitation to make it happen, so that chemical additives are used as an aid. However, the addition of chemicals strongly alters the viscosity and other rheological properties of the suspension factor to consider for subsequent steps to ore beneficiation. In other hand, in a process where no chemicals used often employ large quantities of water to achieve dispersion. But if an efficient chemical agent, which optimizes said dispersion through a specific physicochemical effect on the particle surface is used, also it can generate rheological advantages, besides achieving rational use of water and increase the recoveries of the product main about also optimal costs. The aim of this work is to find the optimal rheological conditions for a dispersion of kaolin as study case, looking for stability, best disaggregation, viscosity and pseudoplasticity.To find the optimal additive, the evaluation parameters were: 1) Best degree of dispersion of the suspensions according to the analysis of the flow curve; 2) Best level of disaggregation of particle chemical analysis delaminated by Particle Size Distribution; and 3) Best thixotropic rheological parameters and pseudoplasticity. Finally the optimum additive as one that meets the best combination of parameters is proposed.INTRODUCTIONKaolin is a clay material formed by altering of feldspar composed mainly for kaolinite. Depending on the application, the kaolin as raw material must be refined and processed because the ores of clays contain usually a lot of impurities derived of its sedimentary source, such as feldspar, mica and quartz (Torres, et. al., 2011). According to the experience on the plant floor and the publication of several scientific papers, it is known that the dispersion is a crucial stage in mineral processing (Greene, Duke, & Hunter, 1965) (Raghavan, et. al., 2004), not only because of the disaggregation of particles, besides because of the humectation of them. Is clear that disaggregation of particles give to the suspensions rheological stability, and the humectation improves the effect of further processes like grinding or chemical treatment. The dispersion process involves making a suspension of the mineral with a solvent which is usually water, to obtain a homogeneous dispersion, with the aid of energy of stirring. Sometimes is not enough the agitation (even with high energy) for this to occur, so is necessary the use of dispersing substances which introduce ions and molecules as modifiers of chemical potential, forcing the molecules of the material to disperse. Sometimes their use even could affect the pH of the suspension in a non-desirable condition. (Flores, 2013)."

Jan 1, 2016

By H. R. Banks

SHORTLY after the commencement of operations at the Sullivan concentrator, the use of a pilot table was instituted in order to present a visual control of various products by showing the amount of galena still present in the tailing from several stages of flotation. Among the products so treated, the final tailing was later included. It was sratifying to note that very little free galena was escaping, but a fine streak o a whitish mineral appeared at the concentrate zone. This mineral was identified as cassiterite. The amount was small and the newly recognized component in an already complex ore was considered primarily as of academic interest. However, the problem of recovering a usable metal was intriguing and, as opportunity presented itself in temporary lulls in research on Sullivan and other ores, the concentration of tin was a useful 'bit of knitting' to go on with. It was recognized from the start that the bulk of the mill tailing would have to be floated and the residue subjected to gravity treatment. Since one of the predominating features of Sullivan concentration operation has been the necessity of fine grinding, the problem of gravity concentration was thereby intensified. Several batch runs were made, and sufficient pulp was treated to produce about one ton of final tin concentrate assaying 67 percent tin. The overall recovery was under 30 percent and the estimated profit at full tonnage was only marginal. Testing was resumed several years later, when the price of tin again appeared attractive, in an attempt to develop a more compact plant with better recovery of tin. The weakness of the original plan of concentration was the large number of tables required to treat a feed so low in tin.

Jan 1, 1941

JOINT convention week has become a feature of the year with western mining men. The first was held at Denver in 1926, the second at Salt Lake City in 1927, and the third is about to take place at Los Angeles. Holding in the same city in one week the meetings of a number of related organizations has been .found to permit the development of a well-rounded program at the same time that it economizes time and money for the members, many of whom belong to several of the participating organizations. For the third time, the American Mining Congress, represented by its Western Division, of which Philip Wiseman is chairman, is taking the lead and assuming the main responsibility. The A.I.M.E. is furnishing the papers for two sessions and the California Development Association for one. The Southern California Section, Robert R. Boyd, chairman, is host for the Institute, but the Northern California, Nevada and Arizona sections have each contributed papers to the program, and will be represented at the meeting. It will be a real reunion of the mining men of the Southwest.

Sep 1, 1928

By Peng Zhang

In previous research, the laminated overburden model from the LaModel program was effectively integrated with Analysis of Retreat Mining Pillar Stability (ARMPS) through ARMPS-like input to create a laboratory version of the new ?ARMPS-LAM? program. This program takes the basic ARMPS geometric input for defining the mining plan and loading condition, and then automatically develops, grids, runs, and analyzes a full LaModel analysis of the mining geometry to output the section stability factor (SF), all without further user input. The initial ARMPS-LAM results were encouraging with a case history classification accuracy of 55% to 71%; however, a few of the input variables that were nominally included in the SF calculation showed independent significance in the classification accuracy. Therefore, in order to further improve the accuracy of the ARMPS-LAM program, an investigation of the SFs calculated by the new ARMPS-LAM program and the ARMPS program is detailed in this paper. The initial results of a linear correlation between the ARMPS-LAM SF and the ARMPS SF showed a strong correlation (R2 = 0.88), with the ARMPS-LAM SF averaging about 8% higher. The difference in SFs between the programs were further investigated, and, ultimately, the results indicated that the laminated overburden model as implemented in ARMPS-LAM distributes relatively more load on the section pillars for depths less than about 1,000 ft and less load for depths more than 1,000 ft. The results of this research highlight the potential for improving the ARMPS-LAM program in the future by implementing a more accurate loading calculation on the section pillars.

Jan 1, 2014

By A. Fuerst

This paper delivers insights into how high availability combines with high efficiency at the Yanacocha Plant, Newmont Mining Corporation, Peru. Advances in motor design and maintenance with integration of smart control support the approach plant maintenance staff is applying to deliver such excellent results for availability and efficiency in Yanacocha and elsewhere. Detailed efficiency and availability data for 2011 and 2012 in Yanacocha are provided. ABB and Yanacocha teams collaborate closely by combining their experience and continuous development of gearless mill drive procedures and maintenance knowledge to deliver the impressive performance being achieved. The secrets for high performance shared by the Yanacocha maintenance operations point to their systematic, practical adherence to modern asset management and maintenance concepts.

Feb 27, 2013

By Georgene Renner, Chee Theng, William Gleason

"A walk through the exhibit hall or a glance at the technical programing that was offered at the 2019 SME Annual Conference & Expo and CMA 121st National Western Mining Conference in Denver, CO, Feb. 24-27 makes it evident that the mining industry is an innovative one that is on the cutting edge of technology. However, a glance at the nearly 6,700 attendees of the conference and it is also evident that while the industry is moving forward at a rapid pace in some areas, it is lagging behind in terms of diversity, both in gender and ethnicity.At Monday morning’s keynote session, Hannah Ubi, a millennial and a public speaker who joked that she is the proud owner of a sixth-place swimming trophy and a number of participation medals, addressed a full house that consisted of many men with gray hair or balding heads. The issue of an aging workforce that is rapidly being depleted by retirements is not a new one for the mining industry. In fact, it has been a concern for the industry for more than a decade. The central question has long been, “when the current senior-level people begin to retire, how do we replace them, and how do we fill the knowledge gap that is walking off into the sunset?” SME has been on the front lines in searching for solutions to the impending problem and, along with industry partners, has worked hard to develop programs that will address these issues. Among other efforts, the Society has developed a Ph.D. fellowship program to encourage people to remain in academia to teach the next generation and to help train the next generation to take over in the private sector.“The SME Foundation’s Ph.D. and Career Development Grant program is exceeding expectations at this point with two Ph.D. students graduating and taking a position in academia and two professors achieving tenure,” SME Executive Director Dave Kanagy said during the conference.The Society’s Minerals Education Coalition (MEC) has done its part to help educate future generations about the mining industry with initiatives like EngineerGirl, the Boy Scout Merit Badge and Move Mining, the Shark-Tank-style competition that was held on Monday with five finalists competing for the top prize (ME, April 2019, page 53)."

May 1, 2019

By Fathi Habashi

Nitric Acid has been used for over 50 years in the uranium industry and in phosphate fertilizer manufacture. Its application in the treatment of sulfide concentrates is relatively recent. A review of recent developments is given.

Jan 1, 1999

By X. Wu

Tunnel Boring Machines (TBMs) are widely used for tunneling in urban areas because of their high advance rate, precise as-built profile and minimal impact to buildings and traffic on the ground. For a tunnel built by a TBM, there are strict requirements on alignment control and safety. To meet these requirements, it is important to monitor the position of the TBM. In the current practice, the TBM position data, including advance distance and line and level deviations, are reported manually to the managers on a daily basis. To interpret and analyze the position data, the managers also need to refer to various construction drawings. This practice is untimely, inefficient, and error prone for decision making. To improve the current practice, an automatic approach for real-time as-built tunnel product modeling and visualization is proposed, based on TBM position and orientation data autonomously sourced from the Virtual Laser Target Board (VLTB) TBM Guidance System developed at University of Alberta. Related information of the tunnel project, such as the as-designed alignment, soil layers, the ground, existing utility lines, is also visualized together with the model of the as-built tunnel. The modeling algorithm is presented step by step. Its application in a real-life drainage tunnel project is discussed and limitations are also identified.

Aug 1, 2013

By J. Grubb

"The undertakings described in the paper titled “Study on correlation of quantified coal rank with self-heating temperature” by Wang and Luo in the November 2015 issue of Mining Engineering (Wang and Luo, 2015) are mathematically sustainable and an acceptable extension of work performed by Smith and Lazzara (1987) for the U.S. Bureau of Mines. The paper is not an accurate explanation of the currently accepted leading practice for determining the propensity of a coal seam for spontaneous combustion. The paper could lead a practitioner to an oversimplified conclusion on how to determine the propensity of a coal seam to spontaneously combust.The spontaneous combustion of coal is a complex and not fully understood reaction. What is understood is that many more factors other than selfheating temperature (SHT) and coal rank are required to sufficiently evaluate the risk of spontaneous combustion in a particular coal seam. A superficial assessment can lead to an improper response to the risk. Some statements on the next steps through an appropriate literature search would have made the authors’ conclusions more credible.The SponCom 2.0 software, updated by the National Institute for Occupational Health and Safety (NIOSH) in 2011, provides a path for evaluating the susceptibility of a coal seam to spontaneous combustion. In addition to proximate and ultimate analyses to establish coal rank, and therefore an estimate of SHT, the program includes the history of heatings, friability, seam thickness, overburden thickness, rider seam presence, pyrite presence, face and butt cleat densities, geothermal source presence and other geological features in the assessment. Mining conditions including floor heave, rib sloughage and rate of advance are also assessed to conclude a propensity for spontaneous combustion."

Jun 1, 2016

By H. C. W. Bosman

"Over the past five years, contributions from geologists and mining engineers were instrumental in the successful development of MEPS. It is a system of FORTRAN programs specifically designed to be used by mining personnel to solve geological and mining problems. MEPS is a flexible keyword-driven system. Extensive error editing procedures significantly reduce the time required to proceed from problem recognition to solution. Possibly the most attractive feature of MEPS is that computer solutions may be guided or selectively modified to obtain desired solutions. Some highlights of MEPS are:1. Vocabulary that is familiar to mining people.2. Geological data storage and retrieval.3. Statistical analysis and variograms.4. Contour maps of assays and geological horizons.5. Trend surface analysis with residual evaluation.6. Ore reserve calculations.7. Open-pit mine design.8. Marginal profitability calculations on pit walls.9. Production scheduling.10. Vertical cross-section plots indicating pit outlines, ore grade contours and selected geological horizons."

Jan 1, 1973

By Janne Kytökari

Controlling a wide range of minerals processes with single control system is an ordinary way to operate in mines all over the world these days. However the potential of these systems is not yet fully recognized nor utilized. The key issue is to manage the information in a way that enables automating the day-to-day tasks, quality control and safety functions. At the same time it provides means for optimization and constant improvement of processes creating a working environment where the system helps employees to do their key tasks instead of searching, modifying, and transmitting the huge number of information arising every day. The distribution of control system nodes enables the other processes to run heedless of a problem occurring in one of the sub-processes. Also the control room can be in remote location such as in large city removing the need to travel substantially long distances to plant sites every day. When all essential information is brought to the same place there is less risk for a mishap to happen due to information breaks that are often the cause of them. One of the biggest single reasons that result in production losses are break downs of machinery usually caused by normal wear, misuse, incorrect utilization rate etc. For this reason it is important to measure the condition of machines using vibration measurement and diagnostics. By moving from failure or time-based maintenance towards predictive or performance maintenance generates eventually a steady and predictable process but also results in significant long term savings. The mineral process at Talvivaara mine is based on bioheapleaching, whereby metals are leached from ore as a result of bacterial action. Bioleaching is a fairly new technology used in metals recovery. Therefore it is important for the mine to collect and analyze data from different stages of the minerals process. Talvivaara mine?s Metso DNA system has integrated machine condition monitoring and information management. These are not only necessary but also crucial in environmental conditions where the outside temperature can drop below -35°C, where ice and snow dominate the landscape and impact the equipment for four months a year and where distances between equipment can be up to 7.5 kilometers. Keywords: DCS, analyzer, machine condition monitoring, automation, remote communications, optimization, mining, metso DNA, Talvivaara

Sep 1, 2012

By A L. de Ambrosis, S J. Clarke

In the non-codified realm of tunnel design there are issues which are sure-fire instigators of controversy. This paper presents a discussion regarding one particular issue which in the authors’ experience often results in comment and debate. This issue only forms part of the rock load assessment process, but it is specifically addressed with the intention of presenting a rational basis for design, which may result in broader acceptance within the tunnel design community.The issue considered relates to the characterisation of in situ rock stresses for the design of tunnel support in the Sydney Basin. A summary is given of the literature on the topic, with emphasis on the main sources of uncertainty and contention. A design approach is proposed, with particular focus given to the numerical modelling of in situ ground stresses and the approach used to ensure that the adopted stress regime is consistent with the assumed ground model. The resulting variability in the initial stress field is discussed and comparisons made to the test database.CITATION:de Ambrosis, A L and Clarke, S J, 2014. Characterisation of in situ stresses for tunnel lining design in the Sydney?Basin, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 247–252 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

By Michael G. Zabetakis

Effective accident prevention programs utilize a broad spectrum of activities, including meaningful training programs. In practice, such programs must be directed towards specific, defined needs. These needs are considered here for three categories of employees: new, re-assigned, and experienced.

Jan 1, 1983

By Chris Laughton, Bernhard Spoerr

"Tunnel inspections are increasingly needed to ensure that aging infrastructure does not fail in service. To this end the time between inspections is being reduced, the thoroughness of each inspection is being increased to provide for a more detailed assessment of conditions and inventory defects. The conventional Tunnel Report, containing hand-drawn maps and/or photos, and a log describing observed defects and areas of deterioration, is being increasingly replaced by LiDAR generated 3-D surface maps. The data collection process that traditionally supports development of a Tunnel Report is labor-intensive, taking crew-days of engineering effort, and requires partial or full stoppage of tunnel operations. In an urban setting, such multi-day interruptions in service are difficult to countenance for a near-capacity tunnel operation. Under time pressures, the detail and accuracy of the manual inspection process will inevitably be compromised, resulting in a high cost, low quality product. As the tunnel inspection window decreases the argument for incorporating laser scanning in to the inspection process is increased dramatically... The 3D scan technology allows detailed and accurate data to be collected within the tight time frames demanded by the owners and operators of critical infrastructure. Not only does the use of laser scanners improve the 3D accuracy of the data collected, it also, enhances the efficiency and safety of the inspection process, reduces data collection and processing costs and enhances the reliability of results over time. The paper will also demonstrate the value of adding photogrammetric data to the 3D Model to show surface defect discoloration. The accurate and detailed data collected by a combination of LiDAR and photogrammetric techniques provide superior data needed to inform critical asset management decisions related to maintenance, repair and replacement."

Jan 1, 2016

By Landy Stinnett

"When performing a valuation of a mineral property, a developing mine or perhaps an ongoing operation, the appraiser is typically provided with a range of information prepared by the property owner. This information can include ownership records, geological interpretation, assay data, an estimate of the reserves or resources believed to be on site (tons and grade), mine plans, production forecasts, capital and operating cost projections, and so forth.The appraiser familiarizes himself with the data, analyzes the various reports and then prepares the appraisal. There is usually a site visit, and there may be some effort at comparison of the particular mineral deposit with others in the region or with those of similar depositional characteristics, but for the most part, the appraiser is relying on the corporate documents, tempered by his/her experience in the field. Time is usually of the essence, the cost for the assignment has been trimmed, and therefore independent verification of the various components comprising the underlying data base (legal review, redrilling portions of the deposit, collection of new samples, re-assaying, etc.) is unlikely in most situations.In the case of high-value commodities — gold, silver, diamonds, perhaps the platinum-group elements — there have been numerous examples of the property owners attempting to increase the value of their holdings by nefarious methods. Most of these involve salting the deposit in some fashion; i.e., introducing small amounts of the commodity into samples being sent to a laboratory for analysis so that the resultant assay shows a higher grade (Donaldson, 2002; Greeley, 2001; Lechler et al., 2008 and Meech, 2001). Other schemes to enhance the apparent worth of a property include the use of nonstandard assay procedures, incorrect handling or withholding of the underlying information, and false reporting."

Sep 1, 2016