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By Daniel T. Brian, O&apos

Exploration targets and results in the mining industry are commonly summarized in terms of tonnage and grade. Business appraisals require, as additional information, the expected profit or loss implied by the physical summay. The early incorporation of knowledge gained through financial analysis computations can provide a means for economically resolving many common exploration and development problems. Examples of such applications from the activities of exploration planning, reconnaissance, land acquisition, and development planning are presented. While prospecting for mineral deposits, geologists are frequently asked what they hope to find or have found. The response is usually descriptive, such as "50 million tons of 1% copper," and the economic implications are deferred until a capital investment decision is required. At that time, a financial analysis integrating the four analysis components is completed. These components are: 1) Tonnage and Average grade above cutoff grade 2) Capital and operating costs 3) Product value 4) Appropriate profit or loss accounting Close examination of these components reveals that there is no intrinsic reason for avoiding financial analyses at earlier stages in exploration, as long as the uncertainty of the estimate is realized. Tonnage and average grades are commonly estimated at early stages in exploration. For this component, the appropriate cutoff is the major uncertainty. Capital and operating costs are difficult to estimate before detailed quantitative information is available, but estimates useful for the types of applications pertinent to earlier exploration stages are possible. Product value estimates may or may not be difficult, depending on the pricing structure of the particular commodity. A simplified accounting procedure usually may be adopted without introducing any significant loss of validity. This paper describe some of the financial analysis applications which are pertinent during mineral exploration and deposit development. These applications lend additional insight during exploration planning, land acquisition, physical exploration, and development. The examples are oriented toward a hypothetical management investment policy which is based on a single criterion, a minimum 15% discounted cash flow rate of return. In reality, managements use multiple criteria. This simplification is convenient for purposes of presentation and does not invalidate the examples. Computers are useful, but not a requirement, for the applications described. The use of computers provides the results on a more timely basis at costs lower than equivalent manual computations. UNDERLYING PRINCIPLES AND ANALYSIS METHODS Data estimates are subject to uncertainty. The analyst may choose to assess this uncertainty by using one of two principles. Each principle has some advantages. The principle most commonly employed is "assumed certainty." Each financial analysis is based on one set of selected data, which may represent the average estimates, minimum expected conditions, etc. The critical data is identified by making successive calculations, varying the values used. Such studies, called sensitivity analyses, isolate the economic effect of various uncertainties, and guide the allocation of future efforts toward improving the overall accuracy of the analysis. A second principle, "assumed risk," examines the interactive effect of the current uncertainties by qualitatively assigning probability distributions to each data element. These probability distributions indicate the currently appraised chance that a given numerical value will prove to be true. The corresponding procedure, risk analysis, consists of processing many individual financial analyses, each analysis being based on randomly selected numerical values from the probabilistic distributions. The result is a numerical presentation of the uncertainty, but care must be exercised in the interpretation of results. The advantage of this procedure is the direct measurement of economic uncertainty caused by the interaction of uncertain estimates. Kennecott Copper Corp. has developed computer systems for accomplishing sensitivity and risk analyses.

Jan 1, 1970

By Mikhail P. Nesterov

The paper presents the results of the research that can forecast the development of subsidences and deformations of the earth surface with time in the permanent marginal areas of the movement troughs arising when mining sylvinite beds in the Upper Kama deposit of potash ores where the rock formation support is made by means of interchamber (rib) pillars of various yieldability.

Jan 1, 1997

By Marc C. Bétournay

Over the last four years, an international initiative, championed by Vehicle Projects LLC, the Fuelcell Propulsion Institute and Natural Resources Canada, has been active in carrying out research projects to prove out the concept of applying fuelcell technology to underground mining vehicles. These have been carried out by a consortium consisting of mining companies, equipment manufacturers, technology developers, national laboratories and consultants, with the participation of Canadian and U.S. mine regulatory agencies. This clean technology, which produces only water and electricity, would allow several advantages to be obtained, in the health area (by eliminating diesel emissions and reducing noise generation), in lowering production costs (such as reducing ventilation required) and lowering green house gas emissions. This article outlines the results obtained in several key areas, such as the operation of fuelcells in underground conditions, risk issues related to underground and surface operation of hydrogen vehicles and hydrogen production and delivery systems, and the design and mining performance of the world?s first hydrogen mining vehicle, a mine production locomotive. The work to date on the fuelcell loader, designing the power plant and power transmission systems, operational requirements, and operating cost reductions, is also presented. There is also an evaluation of the overall mining applications and advantages this technology can bring to underground mining, including the facilitation of automation and tele-remote operation.

May 1, 2003

By J. D. Stone

This paper briefly reviews the adequacy of existing management theories and practices and the managerial proficiency or competency in the South African mining industry. The investigation revealed that existing management practices are totally inadequate to enable all employees on all the levels of the mining industry to achieve the results required from them, in all aspects, at all times. As a result, the South African mining industry is gradually losing its long standing reputation as a relative cheap, competitive, and reliable supplier of minerals to the local and global markets. According to some prominent management authors and theorists, an all-inclusive unified management theory does not exist at present. In this paper the authors summarize the main aspects of a newly developed comprehensive, practical, and integrated management method. It is believed that the application of this method would significantly improve the future performance and competitiveness of the South African mining industry

Jan 1, 2010

By D. G. Krige

For the purpose of determining confidence limits for ore grade estimates, an extensive simulated database was used, which included 1728 ore blocks with ?actual? grades and the corresponding estimates based on ordinary and simple kriging. The practical results show that conditional unbiasedness is essential and that acceptable confidence limits can then be set using Normal theory for the simulated error distribution based on the logarithms of the ratios of ?actuals?/estimates with a variance related to the kriging variance. The mean of the data used to prepare the variogram and the estimated block grade are to be used properly in this approach. A practical analysis was also done of the actual point and block data from a very large mined out Carbon Leader area. The distributions of the actual grades for two levels of block sizes with different levels of variability were fitted using three models, ie. two three and compound lognormal. The trends of tonnages, grades and relative profits for a range of pay limits, as well as the usual tonnage-grade curves, show a practical insensitivity for the choice between the three lognormal models considered.

Jan 1, 2004

By Shazad Hosein, William Birch, Douglas A. Anderson

This paper will present the results of tests of a new method for assessing explosive performance using wavelet transform analysis of standard blast seismograms. The theoretical background of the method was presented at an earlier ISEE conference.

Jan 1, 2015

By Will Hunt, Darren Thornton

In March of 2013, an undisclosed gold mine (MINE X), located in the Western United States, performed blast movement monitoring of three blasts occurring in one of two active pits. Blast Movement Monitors (BMMs) were placed in the bench before blasting, and located after the blast to determine vectors of movement. Using blast movement software, ore/waste boundaries were translated. These locations were compared to MINE X’s standard ore translation procedure, which consisted of moving polygon boundaries by 17.5 feet (5.3 m) in the burden direction of the blast hole pattern. This translation amount, identified by MINE X as “average” motion, had been ascertained by performing a previous blast movement study.

Jan 1, 2014

By J V. Lawless

Mineralisation processes in epithermal deposits in the North Island of New Zealand are best illustrated by considering the two most productive deposits: Waihi and the Thames Bonanza Zone (TBZ), which have different mineralogies and ore shoots geometries. These two deposits can be taken as typical of certain styles of epithermal deposits worldwide, and recognition of their differences can be used to develop mineralisation models of predictive value. Waihi, the major economic producer in the Coromandel Volcanic Zone (CVZ), has laterally near-continuous ore shoots over a vertical interval of 600 m which consist of quartz, chalcedony, pyrite, base metal sulphides and electrum. They are found in the foot wall of earlier quartz veins which contain quartz pseudomorphs after platy calcite and adularia. The Thames Bonanza Zone which was the second biggest producer in the CVZ has discrete near-vertical ore shoots over 300 m vertically, which consist of quartz, pyrite, base metal sulphides, electrum and in their upper parts barite, that are enclosed in veins of quartz.   The gold mineralisation in both deposits is considered to be a co-precipitate with pyrite, with that at Waihi produced by prolonged boiling in an upflow of a hydrothermal system. That at the TBZ was produced by mixing a deep water primed for gold deposition by prior limited boiling, with an oxidised condensate of the steam released by the boiling, in an outflow proximal to the system's upflow.

Jan 1, 1997

By W. K. Callaway

The need to increase ore recovery and pillar stability caused the Magmont Mine staff to investigate the use of sandfill to accomplish both tasks. The use of hydraulically stowed classified mill tailings as a subsidence preventative will be discussed as well as the use of sandfill in pillar recovery and as a part of the regular mining cycle.

Jan 1, 1986

By Dan L'Heureux, Joe Haid, Stephen H. Chung

Most coal deposits in Western Canada involve steeply dipping multiple seams. An efficient way to recover coal seams would be to drill through the seams and blast both the overlying and underlying waste material in one shot without disrupting the coal seams while fragmenting the waste rock for easy removal. This requires special blasting techniques as reported by Chung and Jorgenson in 1985.

Jan 1, 1998

By L. Lehasa

The purpose of the project was to investigate the challenges faced by Khutala Colliery pertaining to underground road construction and maintenance. Furthermore the influence of these challenges on productivity and safety requirements were taken into consideration. The operating standards required for the construction and maintenance of the 2 seam road transport infrastructure was investigated, together with reasons why the standards of operating procedure are not met. The Code of Practice put in place by Khutala Colliery was used to view the standard operating procedures. Leading practices on underground road construction were researched. The project aims to discover the gaps that Khutala Colliery must bridge to implement enhanced practices with regards to underground road construction. During the period of study, observations were carried out to determine whether the road construction standards of operating procedure were being adhered to at all times for both road construction and road maintenance. Khutala Colliery has put in place a traffic management plan, which includes safety practices and work policies that must be adhered to while travelling on underground transport roads.

Jan 1, 2012

By Steve Kral

Mining is a risky business. The cost of exploring for new mineral deposits is high and the success rate of finding one worthy of development is relatively low. And once a deposit is identified, there is no guarantee that it will become a mine. Mining companies have to spend a lot of time and money on due diligence, prefeasibility and feasibility studies, and sustainable development and environmental issues before deciding whether the deposit will become a profitable mine. And then there are the millions of dollars spent in developing the deposit and building a mine. No wonder the mining industry has trouble attracting investment capital. Companies take a large risk in developing reserves and investors take a similar risk in investing in them. So mining companies must be as accurate as possible in determining mineralization that makes it to reserve status. After all, reserves are a company’s most important asset and one of the critical factors analysts and funding sources look at when determining if a mine or mining company is worth the risk.

Jan 1, 2003

By Pooley F. D

The coal measures of the South Wales coalfield contain at least 50 horizons at which coal seams are known, to occur. More than 300 samples of coal were collected from these coal measures and this paper outlines thefindings of an investigation of the pattern and distribution of 12 trace elements in South Wales coals. A comparison of trace element contents of the South Wales coals is made with trace element values found elsewhereand an attempt was made to establish the organic affinity of the elements in different seams and in the coalfield 'as a whole. An important function of such an analysis is to determine the order of abundance of trace elements and this was performed for individual seams and for the whole coalfield.The interrelationship of certain elements in some seams is also examined with a view to understanding the effectiveness of such an approach to seam correlation.Ranges of values are quoted together with the mean values of the various elements. Variations of elemental values within a seam section and over the coalfield as a whole are discussed.

Jan 1, 1977

By R. Heuberger

South Africa?s Mining Industry operates in an uncertain world. The industry is buffeted by problems regarding retrenchments, unemployment, low productivity, rising costs, volatile exchange rates, commodity prices and government regulations. With these uncertainties facing the decision makers, what does applied technology offer the industry?s management? Modelling languages with risk analysis have been available for decades, but in the past their use has been very expensive, requiring large mainframe computers and lots of computer time. Today, PCs and laptops have incredible power, which makes interactive risk analysis affordable and viable for all enterprises, whether small or large. ?What is risk analysis? ?What is Monte Carlo simulation? ?What kinds of computer models need to be created to use risk analysis and Monte Carlo simulation effectively? This paper addresses these questions and illustrates, with a practical example in the mining industry, how risk analysis techniques can be used to support decisions in the climate of uncertainty.

Jan 1, 2005

By Maurizio Siepi, Stefano Trevisani, Pagliaccim Federico, Daniele Vanni

"Abstract: The paper describes a large innovative project completed in 2012-20123 by Trevi Group, to develop equipment capable to install ultra-deep diaphragm wall. The project highlights the capacity of SOILMEC to design and build a new hydromill able to reach an unprecedented depth of 250 m, including new devices for monitoring and correct the verticality. The entire project can take advantage of the long and solid experience matured by Trevi and Rodio (now part of Trevi Group), developing in house or, else, select the elements necessary for a high quality product in the ground.The paper describes the results of different systems used to monitor and control the verticality and the twist of panel during excavation, together with the method used to pour concrete. Finally, the results of verification coring and lab tests on concrete samples recovered at various depths are discussed. The test field has been supervised by representatives of three of the major Italian Universities, and lasts almost one year from August 2012 to June 2013.The verification holes made use of an innovative combination of directional drilling and coring, to check the quality of the plastic concrete for the full length of the panel. The data confirmed that the test panel has high quality concrete, meeting or exceeding to the prefixed requirements.With this test, super-deep cut-off walls reaching depths of 250 m have become a reality. This would change the perspectives of dam engineering both for existing dams rehabilitation and for new dams design and construction. With the execution of this test panel, the technology of milled concrete cutoffs has made a ”quantum leap”, pushing the limit of practicable dams."

Jan 1, 2014

By Frank Rausche

Since the early 1980s, when the Road Construction Authority of Victoria authorized the dynamic proof testing of roughly 100 drilled shafts of 1.5 m diameter and typically 60 m length in Melbourne Australia, dynamic load testing has been applied worldwide for quality control of drilled shafts. Today, test capacities of 4000 tons or more are not unusual. On numerous occasions the authors have been involved in similar tests in the United States and test engineers from other countries have reported on experiences in many different countries. Without doubt, generating high test loads is most economically accomplished by dynamic load testing and this method is particularly well suited for testing piles founded in rock because of the rocks low energy dissipation. However, deep foundation professionals have on occasion expressed reservations about subjecting a drilled shaft to impact loadings fearing, for example, a degradation of the shaft ? rock interface properties or potential error sources due to uncertain concrete properties or shaft geometry. This paper will present numerous case studies, demonstrating the performance of rock socketed drilled shafts under dynamic loads. It will discuss the mechanics of the dynamic tests and the method of data interpretation, addressing the concerns stated above and investigating the limitations of the test method. The paper will formulate a set of recommendations for the design and execution of these tests.

Jan 1, 2006

By C. Gosselin, G. M. Payenzo, C. Bazin, M. Desnoyers, G. Chevalier

"ArcelorMittal Mines Canada operates hydraulic classifiers to reduce the silica content of an iron oxide concentrate from 4.5% to less than 1.2% SiO2. Sampling campaigns were conducted to develop a preliminary model for the hydraulic classifier. Results show that iron oxide and quartz are respectively concentrated in the coarse and fine size fractions of the classifier feed. The mineral partition curves in the classifier and the size distribution of the minerals in the feed are used to simulate the classifier operation in order to identify the source of variability observed in the daily plant production data. Results indicate that most of the variation is probably caused by unsteady operating conditions of the classifiers.INTRODUCTION Hydraulic classifiers are a class of gravity separation devices (Wills, 1992) used to classify particles according to their size and specific gravity. Hydraulic classifiers also known as density separators (Hearn, 2002) combine hindered settling and upward flow of water to selectively entrain light particles to an overflow stream. Denser particles settle to an underflow stream. Hydraulic classifiers are used for various purposes ranging from cleaning of coal (Das, Sarkar, & Mehrotra, 2009), recovery of chromite from plant tailings (Kumar, Tripathy, & Rao, 2009) to upgrading iron oxide concentrate (Hearn, 2002). ArcelorMittal Mines Canada operates several hydraulic classifiers to upgrade an iron oxide concentrate by removing fine quartz and other light minerals from hematite that is the main iron oxide mineral. A project was initiated to analyze the operation of the classifier in an attempt to identify the source of the variability in the production results and to assess the potential of increasing iron recovery in the classifier. One possible disturbance for the classifier operation is the change in the classifier feed composition and size distribution, while the other considered disturbance is the operation of the classifier. The paper is divided into five sections. The first section summarizes the ore processing sequence for the production of iron oxide pellets to identify the position of the hydraulic classifier in the process. The second section describes the hydraulic classifier. The third section discusses the sampling campaigns conducted on the hydraulic classifier. The method used to process the data from sampling, the results of the data processing and simulation of the classifier are discussed in the remaining sections."

Jan 1, 2012

By G. Montes-Atenas

Throughout the years, research studies have reached a consensus in acknowledging the relevancy of surface chemistry phenomena on minerals separation and metals extraction. Many techniques, and notably, scanning electron microscope-based technologies have revolutionised the entire mineral processing industry. Nevertheless, the comprehensive understanding on how surface chemistry properties influence the performance of many processes involving ores is still a challenge, a matter of controversy. The latter is mainly due to the fact that all interfacial processes do not necessarily require stoichiometric and well defined atomic structures. This is particularly true in the case of sulphide minerals which are well known to be superficially unstable in aerated media. When trying to measure any variable related to mineral-mineral or mineral-aqueous solution interfaces, there are too many unknowns regarding how sensitive the interface is when facing sampling protocols and sample handling. The aim of this research work is to make a case for improving future concentrators? survey protocols. It suggests a methodology to study effectively chemical changes at the outmost mineral surface layer at different stages of a mineral processing operation. The sampling protocol and sample handling is presented in details and it is applied to the regrinding stage of an industrial plant.

Feb 27, 2013

By Professor of Civil and Environmental Engineering Northwestern University, Mike Wladron, Gordon Revey

A unique judicial opportunity allowed measurement of the response of three cracks in residential structure to blasting for underground aggregate mining. Instrumented cracks were located in the interior basement CMU mortar and upstairs dry wall as well as exterior brickwork. The dynamic environment was unusual. Even though the blasting occurred some 490 m (1600 ft) away, excitation frequencies were unusually high and there were no apparent surface waves. In addition there was no air overpressure wave to produce secondary crack response. As is typical, long term environmental effects produced greater crack response than did the blast induced ground motions.

Jan 1, 2007

Block caving is an underground mining method for the profitable extraction of massive, low-grade orebodies. Lately, it has become the mining method of choice, for many mining companies, because of depleted high-grade orebodies, and declining metal market prices. Block cave mining, however, still faces several challenges. Lack of access to the cave remains a major issue in understanding the rockmass response to mining for method optimisation. Improving our understanding of the rockmass response to caving will lead to safer and more productive operations. Combining large datasets from multiple sources with virtual reality scientific visualisation (VRSV) is a viable alternative to understanding complex cave behaviour without access to the cave. This is achieved using immersive environments with the ability to view complex multi-dimensional data (beyond 3D) graphically. VRSV offers a unique platform where it becomes possible to immerse the multi-disciplinary experts, and/or management team, in a virtual mine environment for quick decision making and fast resolution to conflicting conclusions. The underground mining system is complex due to multiple interrelating factors such as geology, excavation geometries, stress and time. Block caving is even more complex than most underground mining methods due to the network of tunnels required, and the use of induced stress, among others. As a consequence of the complexity in the block caving environment, it is vital that the mining system is analysed holistically, as a system, rather than optimizing individual factors one at a time. This paper presents a customised software module developed for use in the Advanced Visualisation Interactive Environment (AVIE) at The University of New South Wales (UNSW), Australia, to enable VRSV investigation into block cave mining systems (BCMS). This approach has the potential to provide a better understanding of the effect of time in in rock engineering, which has proven to be an important factor in hard rock mines (Ma & Daemen, 2006; Malan et al., 1997; Suorineni, 2010) but never validated. This work back analyses the early undercutting phase of a case study block caving operation with the view to understanding time/sequence effects. There is evidence that heterogeneous rockmass time-dependent behaviour governs the seismic response of the rockmass following undercut developments.

Jan 1, 2015