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By Robert T. McKnight

"Traditional techniques for valuing resource projects companies have been primarily based on discounted cashflow methods (DCF) or by comparison to similar projects with an apparent market capitalization. Many resource projects are really forms of options to invest rather than a future cashflow stream. Employing the DCF method to value a resource project which is really an option to invest, can dramatically underestimate the real value of the project. The analytical tools required to evaluate options, while more complicated than the usual spreadsheets used for DCF, are becoming more easily available and usable by managers. This paper will discuss the background of options valuation and some of the tools which will make it easier for managers to estimate the value of projects and companies which have significant real option values.ResumeBob McKnight is a graduate of the University of British Columbia in Geological Engineering, supplemented by an MBA from Simon Fraser University. Following several years in the oil patch with Cities Service and Brascan, Bob returned to Vancouver in 1979 to work for Wright Engineers. He subsequently went on to work for Cassiar Mining, Getty Resources and Endeavour Financial before joining Pincock Allen & Holt Ltd. in 1998. His experience ranges from exploration to feasibility studies, financial evaluations of mining and oil & gas projects, due diligence, project finance, valuations and mergers and acquisitions. He has extensive international mining experience pertaining to such countries as Chile, Mexico, Uruguay, Thailand, Indonesia, Angola, Papua New Guinea, Kazakhstan.What are Options?Options have been around for centuries. They were familiar to Roman and Phoenician traders who were shipping cargoes from Mediterranean seaports. In the financial world, options are types of contracts that generally include the right, but not the obligation, to buy or sell a share, currency or commodity. The underlying commodity price or share price changes are assumed to be lognormally distributed. In this context, options are of two general types, ""call"" options and ""put"" options. Call options have the characteristic of having the right to buy a tradable commodity or currency at a predetermined price for a specified period of time. For the owner of call options, they become more valuable as the price of the underlying commodity increases. For the seller of call options, these options become an increasing liability as commodity prices rise, since there is the obligation to sell the commodity at a predetermined (perhaps lower-than-market) price. This characteristic of call options recently became high profile with the sharp rise in gold prices last year. The value of gold call options sold by certain producers increased their associated liabilities to the point where margin calls were made."

Jan 1, 2003

By L. A. Haas

S02 reduction with CO was studied in an integral flow reactor at a nominal flow of 0.5 liter per minute. Reactant gas contained 3 percent SO2, 6 percent CO, and the balance He. SO2 conversion was determined for three different types of catalysts. The first consisted of 16 commercial catalysts used for various chemical syntheses. Only the commercial catalysts which contained transition metals in alumina removed more than 30 percent 80a at temperatures below 510° C. Two other types of catalysts were prepared in the laboratory either by pelletizing equal amounts of powdered alumina and transition metal oxides or by impregnating commercial alumina tablets with transition metal ions. Regardless of preparation techniques, Cr and Fe in alumina were the two best catalysts. The observed results suggest that an intermediate (SCO) is formed by the interaction of surface metal sulfides and carbonyls. Alumina then catalyzes the interaction of SCO with S02 to form the end products (sulfur and carbon dioxide). Over 80 percent S02 was removed at 460° C with 2 grams alumina impregnated with 2.5 percent iron.

Jan 1, 1972

By Swan. J. D.

Repairing and replacing equipment damaged by corrosion and abrasion is a major cost throughout industry, especially in the coal mining industry. Careful study of corrosion and abrasion, and their causes and effects, often leads to the selection of alternative materials which can provide economies. What, actually, are corrosion and abrasion and how do they contribute to the cost of operating a coal-preparation plant? Furthermore, what can be done to alleviate corrosion and abrasion problems and thereby reduce operating costs? These questions will be answered in the following discussion, which will describe the destructive action of corrosion and abrasion and give several methods for controlling corrosion and abrasion losses, These methods include the substitution of stainless steel for carbon steel, the use of corrosion inhibitors, and the use of design to eliminate corrosion and abrasion. Examples will be given illustrating the benefits that have resulted in plant tests when these methods of controlling corrosion and abrasion were used.

Jan 1, 1970

By Arnold C. Love

This report discusses current research by the U.S. Bureau of Mines on the effects of whole-body vibration (WBV) and shock on underground mobile equipment operators. The highlights of a comprehensive literature review of WBV, shock, and seating are presented. Factors discussed include health and physiological effects, comfort, performance, and fatigue. Vibration data were collected from shuttle cars and ramcars at several underground coal mines in Pennsylvania, Ohio, and Illinois. The data were formatted so that they could be used to drive the Bureau's motion platform, and to compare them with ANSI S3-1979, Guide for the Evaluation of Human Exposure to Whole-Body Vibration. Human subject testing in the Bureau's vibration research laboratory evaluated the effects of two different seat angles and of the presence or absence of vibration and of foam padding on heart rate, blood pressure, and subjective discomfort. Only vibration significantly increased heart rate and systolic and mean blood pressures. Vibration and a steel seat had a significant effect on subjective discomfort. The apparatus used for these tests and the experimental procedures are described in detail. Recommendations are made for additional research on the exposure of underground mining machine operators to WBV and shock.

Jan 1, 2010

By Laurence B. James

The California Department of Water Resources is concerned with the development, distribution, and protection of the State's water resources. Geologic activities of the Department relate to planning, construction, and operation of water projects, supervision of the safety of over 900 dams under state jurisdiction, and investigation and control of ground water supply. The Department is engineering oriented, and the role of the geologist is to assist with the solution of engineering problems. Some of these problems require the integration of many talents, including not only those of geologists and engineers, but also those of economists, lawyers, seismologists, chemists, geophysicists, and hydrologists, Frequently, a task force of several disciplines will attack a problem as a team.

Jan 1, 1965

By J Borthwick, M Yusi, M Douge

Feasibility studies form a vital and significant component of the project delivery cycle. They are at the heart of the valuation process. This paper focuses on variables which can affect a project and how these are assessed as part of the decision-making process through feasibility studies. Test work and site selection needs; the degree of engineering required to meet the study requirements and the quality of owner project information are discussed. Also, local factors including permitting needs, social, environmental and government relations are considered. Engineering and site factors are crucial in the estimating process. The interaction of detailed engineering, engineering assumptions and estimating methodologies are therefore examined. The ownerÆs perspective is considered along with risk analysis, which is fundamental in project feasibility study activities. The impact of this is also discussed.

Jan 1, 2009

By S Mitchell

Jetcrete Australia Pty Ltd, shotcrete contractor took the initiative in 2008 to discontinue the use of ‘road registerable’ concrete trucks for all underground works in Australia and internationally.The rationale for this decision was basic, safety. Historically these vehicles have been and still are involved in far too many accidents; this obvious trend needs to be addressed by engineering out the root cause of the problem which in this case is suitability for purpose.Road registerable concrete trucks have been widely used for the delivery of concrete in Australian mines for many years prior to and after the inception of wet shotcrete as ‘in cycle’ ground support in underground excavations around 1992. With this inception came a wide interest in the shotcrete process and an influx of new shotcrete contractors, all using road registerable concrete trucks to deliver the large volumes of Shotcrete required for these services and in turn largely increasing the use of these vehicles underground. The road registerable concrete trucks were difficult to control and each trip underground required the operators to maintain good management of the inherent risks. We virtually had no reasonable alternative for the industry and could only encourage the operators to drive with soft controls such as, reducing overall speed to a maximum of 15 km per hour when declining, regardless of the road conditions, coming to a complete halt prior to turning into any sharp corners, remaining in the same gear both inclining and declining.

Mar 21, 2011

By A. D. Garman

This paper presents one of a series of digests of foreign mining legisla- tion and court, decisions which is being prepared in advance of a general report relative to the right of American citizens to explore for minerals and to own and operate mines in various foreign countries. This interpretation of the laws of Latin America has been prepared from the best available information in Washington, but is released subject to correction and amplification, if necessary, by the proper American diplomatic and consular officers, to whom it is being referred through the courtesy of the Department of State. Individual abstracts of the laws of each of the countries herein discussed have been prepared and published separately. This general summary is presented for the use of mining engineers and investors whose interests extend over the borders of a single country. It is also designed to bring out certain general principles of mining law and, so far as feasible, to indicate the trend of mining legislation in South and Central America. In order to gain perspective, the details of legislation are not com- pletely covered in this paper, but an effort has been made to bring out essential differences as well as points of similarity in the laws of the various countries. The course of legislation is first traced chronologically and the points discussed are then arranged in tables in somerhat greater detail. .Si. With a very few exceptions the existing mining legislation of Spanish America is a development, of the Spanish "Law Decree of Bases" (more briefly referr- ed to as the "Decree-Bases") of 1868. This in turn was influenced, particularly in its classification of minerals, by the French law of April 21, 1810.

Jul 1, 1930

By Ralph T. Buscarello

For practical purposes, the terms "natural frequency," "resonance" and "critical speed" are synonymous. A part passing though its "critical" or "critical speed" may also be said to be "resonant" or "resonating." The vibrations of a precisely balanced part can be magnified by the structure in which it is assembled. Anyone who has driven an automobile knows that it will vibrate more at a certain speed than at others. According to the formula for centrifugal force, vibration should increase steadily with a rise in rpm. What happens instead is that the vibration not only in- creases with r m. but suddenly rises at a much higher rate through the critical speed, and then apparently smooths out as the rpm passes beyond it. To visualize what happens, consider a simple flat spring with a weight mounted at one end. When the spring is deflected by pulling down on the weight and then letting it go, the spring will oscillate, and the spring-and-weight system will vibrate at its natural frequency. If the timing or direction bf the impulses imparted to the spring did not coincide with its natural frequency, the result would be an irregular vibration that would not build up. If, on the other hand, the timing and direction of the impulses did coincide with the spring's natural frequency, the result would be a larger and larger amplitude. If the impulses were continued indefinitely, the amplitude of the spring's vibrations would go on rising [while its frequency stayed the same] until the spring broke or the amplitude of the vibrations reached an equilibrium [because frictional or other forces would tend to damp it]. Resonance magnifies the amplitude of vibrations in a relatively undamped system between 100 to 200 times over that of nonresonant vibrations. Frictional or viscous damping often reduces the magnification [from 10 to 20 times], but even with this reduction the amplitude would still be large enough to cause excessive wear, and sometimes even fractures. For example, a blower might show only 0.001 in. of vibration on the manufacturer's test stand. Installed, the blower could pass into its critical speed [the speed at which the frequency of the vibrations caused by the rotor coincides with the supporting structure's natural frequency], and the 0.001 in. of vibration could be resonated to 0.010 in., or as much as 0.020 in. The cure for such a condition would not be to lower the vibration of the blower by further balancing or better alignment but to separate the two frequencies by at least 20 to 30%.

Jan 1, 1970

By Richard L. Unger

The Bureau of Mines entered into a cooperative agreement with an eastern Kentucky coal mining company to comprehensively redesign the flow of equipment and supplies throughout its underground mines. Items were tracked from delivery to the warehouse and from surface storage areas to their final usage locations underground. Three underground mines were visited, and a great variety of tasks were videotaped for subsequent laboratory analysis. Of particular interest were tasks that required manual handling of the supplies or equipment components. Activities such as handling daily supplies (concrete blocks, rock dust, and cross- beams) and handling or lifting the continuous miner power cable were determined to be the most hazardous. Recommendations to the company included redesigned surface storage areas to facilitate the use of forklift vehicles to load the underground supply cars. Designs were also developed for different mechanical- assist devices to help in unloading the supply cars underground and to handle equipment maintenance tasks underground. Additionally, the videotapes of the underground manual handling tasks became the basis for simulating those activities in controlled laboratory conditions. This testing will contribute to developing guidelines for proper lifting techniques for low-seam coal mines.

Jan 1, 1986

By II Browne

After a decade of high copper prices, major mining companies are renewing their interest in purchasing operating properties and/or development of ore bodies. An existing operation carries with it a history that can present unique opportunities, while a greenfield operation allows for the establishment of a defined culture. Capital investments are distinctly different. A comparison of BHP Copper Robinson Operation, a greenfield property, and BHP Copper Tintaya Operation, a government owned Peruvian property, will provide insights into mining, concentrating and cultural differences between North and South American Operations.

Jan 1, 1997

By D. R. Babich, E. R. Bauer

National Institute for Occupational Safety and Health (NIOSH) researchers are conducting a cross-sectional survey of equipment noise and worker noise exposures in the mining industry. Surface and underground limestone is one commodity recently surveyed. The sound levels of mining and processing equipment were recorded to identify noise sources. Full-shift worker noise exposures were completed to determine the exposure of various occupations. This paper presents the results of the noise research conducted in both underground and surface limestone mines, detailing the equipment likely to cause worker overexposures, and the occupations experiencing overexposures. Implications for worker noise exposure reduction are also reported.

By Diego Quezada, Carlos Munoz, Marco Arellano

It is well-know that the presence of fine materials in mining has a direct impact on the plant processes with a great influence in the total amount of ore production and recovery. In Cu mining heap leaching is affected negatively by the presence of fines material (< 100 # Ty) in leaching piles, where a decreasing in Cu recovery is achieved in a lot of cases. D&B practices used normally in mine operations can generate fines > 4% in blasted piles, but the principal effects are reflected in the downstream processes where pre-conditioning post-blast materials release greater quantities of fines.

Jan 1, 2010

By J. W. Thompson

MINERALS OWNERSHIP AND POSSESSION. The owner of minerals under a conveyance from the surface owner does not lose his right or his possession by mere nonusage of the minerals. McBeth v. Wetnight (Indiana), 106 Northeastern, 407, p. 410, October, 1914. QUIETING TITLE TO MINERALS-PLEADING. A complaint in an action to quiet title to minerals and to the min- eral rights in certain land is insufficient in the absence of a direct allegation of possession, although it avers that the plaintiff from the time of receiving the conveyance assessed the mineral interest for taxes each year and paid the taxes thereon and exercised various acts of ownership of such mineral interests, in that he caused test pits to be dug on the land for the purpose of exploring the minerals and ascertaining their quality and extent, in going upon the land and looking after them from time to time, and that he accompanied or caused his agents to accompany prospective purchasers of such mineral interests and exhibited the same to such prospective pur- chasers in efforts to sell them. Fowler r. Alabama Iron & Steel Co. (Alabama), 66 Southern, 672, p. 673, Novem- ber, 1914. SALE BY MARRIED WOMAN-VALIDITY. A conveyance by a married woman of the mineral rights in certain described land is void where she had previously conveyed the land to another grantee who had acquired title by adverse possession under the deed.

Jan 1, 1915

By Charles J. Haas

The objective of this research was to investigate the interaction phenomena of rock and types of rock bolts to develop design principals for using grouted roof bolts. The investigation was to determine the effectiveness of grouted bolts in resisting lateral displacement and axial separation along fracture planes, and also to determine if grouted bolts eliminate the axial tensile stress near the anchor and the resulting rock fracture. The first year&apos;s effort involved defining the post-tensioning response of grouted bars and determining the amount of shear resistance generated by conventional and resin-grouted bolts. A finite-element analysis showed that if the rock and resin grout behave in an elastic manner, the post tensioning of a grouted bar will affect mine roof stability only if movement occurs near the collar. An experimental shear test program revealed that both conventional bolts and resin-grouted reinforcing bars significantly increase shear resistance along fracture or bedding plane when the average normal compressive stress on that plane is low (in the order of 25 psi) and when the bolt is oriented so that the shear displacement tends to lengthen the bolt. An increase in shear resistance is also noted at the higher normal pressure of 250 psi; however, the increase is small compared to the corresponding shear resistance without a bolt. Conventional bolts oriented so that they tended to loosen with shear displacement added no significant shear resistance.

Jan 1, 1974

By William E. Greenawalt

IN these days of special legislation for the benefit of various industries one might well consider one branch of human endeavor intimately associated with engineering-that of patents and patent litigation. It is estimated that 85 per cent of all industries in the United States are based directly or indirectly on patents. Most inventors are engineers, and most patent litigation pertains to the engineering industries. It is fitting, therefore, that engineers should be vitally interested in discussing patent affairs, particularly as inventors are not a professional group, and invention is mostly a transitory phase incident to the development of specific industrial problems.

Jan 1, 1937

By Shigehisa Endoh, Hitoshi Ohya, Atsushi Inaba, Shigeki Koyanaka

"Recycling should be promoted to keep the global environment. However, it is difficult to detennine the quantitative impact. A life cycle assessment is one of the most reliable methods to estimate the global environment impact.Exergy is useful like entropy when considering the sustainable development. All of our activities have been obtained exergy resources and/or energy itself and throw away waste and/or waste heat. We are trying to use exergy to estimate the quantity of energy and matter for resource accounting. For recycling plastic, plastic has two aspects; material and energy source.The environmental assessment of plastic recycling suggests that the exergy reduction of the entire system is estimated by the yield of matter and the process efficiency. The material recycling is better than the thennal recycling when the process efficiency is high. However, the thennal recycling is much better for the low efficiency. The transition point is able to be decided by the efficiency of the manufacturing and the electric power generation.IntroductionRecently, many of the global environmental problems have become conspicuous like global wanning, ozone layer depletion and acid rain. Some of the methods like life cycle assessment for solving these problems have been presented. Anxiety concerning the proble1ns of energy and resources has led to a rapid increase in the interest in describing and understanding the conversion processes of energy and other resources in today's society. All human activity is supported by obtaining power and products of high exergy from the environment and throwing away the waste material and the waste heat of low exergy back the environment. However, the total exergy in the whole system becomes absolutely smaller than before.The rate of obtaining high exergy products and energy itself by human activity and the speed, by which waste and waste heat having low exergy are thrown away are too fast to attribute to environmental problems [1-3].A material's use by recycling was often common in a circulating society mainly. A significant amount of energy is consumed during circulation. An environmental impact assessment method for the process or the system has not been devised when both of them are taken into consideration. Even if the life cycle assessment evaluation, which has been correctly used up to now, is applied, it is not sufficient for an overall evaluation concerning matter and energy.The real sustainable development is that the exergy reduction value by all human activities on the earth is kept within the range of the exergy reduction in order to consider the earth as closed stationary system. It is important to evaluate the process or the system by using the exergy, and design them so that the exergy loss may decrease as much as possible. We have to consider what process improvement is the most effective."

Jan 1, 2000

By E. K. Stanek

This report contains the results of an investigation into the feasibility of periodically measuring parameters of the insulation for a mine electrical power system in order to detect incipient faults. The variety of insulation parameters evaluated included insulation resistance, dissipation factor, power factor (vs. applied voltage), current harmonics, leakage current, infrared radiation, as well as certain circuit breaker parameters and tests. In order to augment field tests a program of accelerated life testing was also carried out. Apparent inconsistencies in data were identified as the result of environmental effects, primarily temperature and relative humidity. A series of environmental tests were conducted to develop correction factors that allow one to refer measured parameters to standard conditions. A portable data collector was develop-ed to aid in the accurate collection and analysis of laboratory and field data. The primary conclusion is that insulation deterioration can be measured and failure predicted with reasonable confidence. The secondary conclusion is that most of the tests are impractical in the field although useful in the laboratory. Infrared sensing, insulation resistance and dissipation factor are the best insulation field tests when portability is taken into account.

Jan 1, 1979

Two events during the past decade have combined to effectively alter the role of the geologist working in Papua New Guinea. The gold boom of the 1980s resulted in a substantial increase in the general awareness at village level of mining companies, gold and landowner issues, and as a consequence of the Bougainville tragedy, landowners are also very much aware of the potential problems of a mining operation in their area. Landowners know they have the power to remove a company from a project area, and government has shown itself to be virtually powerless and unable to help the company effectively. During a considerable proportion of a project&apos;s development time, the project geologist is viewed in the eyes of the local community as the &apos;company&apos;. Good landowner relationships are nurtured over a reasonable time period and the input of the geologist is significant in determining the eventual fate of company-landowner relationships. The initial impressions of the company, gathered by the local community, will have a far reaching impact on the nature and direction of their future exchanges with the company.

Jan 1, 1991

By James A. Robertson

"In the Blind River area Proterozoic clastic and sedimentary rocks and minor volcanic rocks (The Huronian Supergroup) uncomformably overlie and trangress northwards over dominantly granitic Archean terrane (2500 + Ma) and are intruded by Nipissing Diabase (2ll5 Ma). Later deformation and metamorphic events are recognized. The developing depositional basin was controlled by the incipient Great Lakes Tectonic Zone marginal to the Algoman Craton.The Matinenda Formation (basal Huronian) comprises northwards-derived fluvial arkose, quartzite, and pyritic, uraniferous oligomictic conglomerate which contained in 1981 some two-thirds of Canada's uranium resources. Production to December 1981 from Elliot Lake totalled 98.3 thousand tonnes U for an average recovered grade of 0.1% U with an additional 671 tonnes U recovered by leaching at Agnew Lake. The remaining resources are at lower grades. Some thorium and yttrium have been produced. Minor amounts of gold reflect the paucity in the source area. Gold is better-developed in the Huronian north of Sudbury reflecting the local source area.The conglomerate beds lie in southeasterly-striking zones controlled by basement topography down sedimentation from uraniferous Archean granite. Uraninite textures, the distribution of monazite, and local enrichment by reworking indicate a syngenetic, probably placer, origin of the mineralization. ""Brannerite"" has formed by solution of uranium from the margins of the uraninite grains and redeposition on the original titaniferous minerals. Penecontemporaneous volcanics may have been a source for sulphur in some of the pyrite and of trace amounts of Co, Ni and Au. Some pyrite may be detrital, some may be authigenic and some introduced.Drab coloured rocks, uranium and sulphide mineralization, the presence of hydrocarbon (thucholite) and a post-Archean regolith formed under reducing conditions have been cited as evidence of an early Precambrian reducing environment extended to the atmosphere. Sedimentary features indicating fast-flowing water and possibly a cold climate imply that the uraninite would be exposed to whatever oxygen was present in the atmosphere under conditions which would inhibit complete solution. In the upper Huronian, red beds and in the Lorrain Formation a monazite - iron oxide assemblage and copper mineralization indicate more oxidizing conditions. . Similar uranium deposits occur at Agnew Lake and in the basal Huronian north of Sudbury there are minor uranium and gold values.Provenance, lack of complete oxidation, transportation and depositional processes, redistribution during diagenesis and possibly low grade metamorphism, and the lack of post-depositional destructive processes are the dominant factors in the formation and preservation of the ores. The modified placer theory of genesis is well entrenched and an exploration model for such deposits throughout the world is well-documented.Research continues on mineralogy and textures of the ores, detailed sedimentology of the ores and their host rocks, with particular emphasis on: provenance area, the influence of early Precambrian mineralization patterns on the mineralization present in the Huronian both in space and in time, fluvial sedimentation and diagenesis. Expansion and reopening of the mines of the Elliot Lake camp should facilitate further studies."

Jan 1, 1986