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By Mark E. Emerson

INTRODUCTION A long time has passed since geologists encountered encouraging mineralization in their regional exploration program for base metals deposits. Detailed drilling during the following two field seasons served to delineate the configuration of the deposit. Various statistical techniques were employed to provide confidence levels regarding the extent of the reserves and to categorize them according to whether proved, indicated or inferred. At this juncture, it appears that the company has an orebody. Time elapsed? - three years; money spent? - $2.5 million. Much remains to be done before the orebody becomes a mine. The company urgently needs to develop new orebodies to replace its existing mines which are being depleted. It therefore has expended sizable amounts in exploration, the life blood of the company. A staff of specialists is maintained to evaluate new projects and to conduct feasibility studies. The scale of new mining projects today is beyond the resources of most mining companies. Bank financing, therefore, is often vital if the company is to survive. The following scenario describes how a company goes about evaluating mine projects and what is needed to meet lender's criteria in securing the needed financing. MINE PLANNING Now that the company engineers have taken over the project, their concern is no longer with finding ore but in developing it. An exploration shaft has been put down and a tunnel driven into the orebody to verify, on a large scale, what has been seen so far only in pencil- like drill cores. A large tonnage bulk sample is mined and shipped off to an independent metallurgical process laboratory for beneficiation testing. The budget is expended to cover engineering studies. Preliminary capical and operating costs are developed in- house and profitability studies are made based or1 assumptions concerning the markets for the main product and the indicated gold, silver, and other by-products. Time elapsed? - four years; cost to date? - $3.5-$4.5 million. The staff prepares its own pre-feasibility study. After review, the Executive Committee authorizes management to proceed with full-scale studies. The task is to make preliminary designs and to develop definitive capital and operating cost estimates. Specialized consultants will be engaged to study slope stability for the open pit and rock strength if underground recovery proves more feasible. If it is near the sea, an oceanographic report might be commissioned to see if the tailings can be disposed of off shore. Environmental impact studies are commissioned from a firm familiar with government requirements and regulations in this important area. The company subscribes for an expensive multi-client study of the supply- demand-price outlook for the product to support its own long-range price forecast. Now all the numbers are available to make a definitive appraisal of the value of the project. Cash flow analyses and sensitivity studies follow. Reams of computer printouts are generated. Time elapsed: five years. Amount spent? - up to $9 million, depending on the size, complexity and attractiveness of the project. Marginal projects always take longer. Finally, an engineering and construction (E&C) company is given the task of integrating and compiling all the data into a feasibility study. The results of dozens of reports, memoranda, computer printouts, and charts are boiled down to one final summary report of a few hundred pages together with conclusions and recommendations. After thoughtful review at a board meeting, the directors authorize management to proceed with detailed engineering work - provided that

Jan 1, 1985

By Edwin A. Rides

HISTORICAL ORIGIN OF THE EXPORT CREDIT AGENCIES Almost since the inception of international commerce sellers, having manufactured and/or sold and shipped goods to an overseas buyer, have been obliged to accept the risk that they will not be paid for one reason or another. There are many reasons why payment may not be forthcoming, for example, the goods may be lost at sea, or rejected by the buyer or the buyer nay simply not be creditworthy. These risks were brought into sharp relief as international trading became more sophisticated and the practice of giving credit to buyers gathered momentum. Inevitably enterprises sprang up which offered same mitigation of this exposure, accepting houses and later confirming houses and banks were prepared to assure acceptable credit risks an behalf of the seller, usually by discounting trade paper, and for many years the market ticked over reasonably satisfactorily. However, after the 1914-18 War international trade was at an extremely low ebb and its inherent risks were accentuated to a point where they were often commercially unacceptable. Yet a healthy and vigorous international market was indispensable to recovery of the world economy and a number of governments, led by the United Kingdom, perceived a need to offer their exporters a comprehensive form of insurance, particularly to facilitate the extension of credit to foreign buyers. In the United Kingdom the Export Credits Guarantee Department (ECGD) was set up to encourage trade through the provision of export credit insurance. Over the ensuing years others followed suit and now most of the developed trading nations and many developing nations have similar agencies. PRESENT DAY IDLE OF THE EXPORT CREDIT AGENCIES (ECAS ) Traditionally then the BA's role was to encourage trade through the provision to exporters of insurance against the risks of non-payment by overseas buyers of their goods and services. However, during the 1970's the manufacturing industries of most of the developed nations found themselves facing severe competition for business, particularly in the developing world. As a result the more aggressive ECA's began to introduce ancillary forms of cover designed to reduce exporters' risks outside of the credit field. For instance, most of the European agencies now have a form of cover against foreign exchange risks here contracts are denominated in currencies other than that of the exporter's country. Most of the agencies also provide cover to exporters against the risk of unfair calling of bid, advance payment, performance bonds etc and in certain countries, where high inflation rates were endemic, a form of cover against cost escalation. In certain circumstances it is also possible for an exporter to obtain cover against losses arising as a result of the involvency of a partner in a consortium or joint venture. These are all forms of insurance but, also during the 1970's, many of the national export credit programmes took a major step away from their original raison d'etre by facilitating the provision of preferential financing terns for the acquisition of capital equipment by an overseas buyer. This new line of business quickly became an important ingredient of major export financing packages and, as we shall see later, turned out to be extremely costly for the countries providing it.

Jan 1, 1985

By G. A. Smyres

The Bureau of Mines conducted laboratory studies to determine the feasibility of chlorine-oxygen leaching for treating low-grade zinc sul-fide flotation concentrates. Recovery of zinc sulfides by flotation from complex fine-grained sulfide ores is substantially higher in low-grade bulk sulfide concentrates than in the high-grade cleaned concen-trates required for smelter feed. However, there is no commercial process in the United States for the treatment of low-grade bulk zinc sul-fide concentrates. Leaching experiments using reactors of 500-mL and I-gal capacity were conducted on a bulk concentrate containing 19.3 pct Zn, 35.6 pct Fe, and 39.4 pct S. The effects of pressure, temperature, and percent solids on extraction were investigated. The chlorine-oxygen leaching procedure showed promise for treating the concentrates. Zinc extractions of 95 pct or more were obtained by leaching at 50 pct solids in the temperature range of 1000 to 1200 C. Zinc extractions by leaching with chlorine followed by oxygen at reactor pressures of 50 to 100 psig were independent of pressure.

Jan 1, 1985

By V. K. Gupta

"Effect of mill speed on grinding kinetics has been investigated with a view to using mill speed as a manipulated variable for control and optimization of the grinding circuit performance under variable ore hardness conditions. Dry and wet batch grinding tests were carried out for quartz, limestone and cement clinker in a 29 cm x 18 cm laboratory ball mill. Mill speed values selected were 55 and 70% critical. In the case of dry grinding operation, with an exception of quartz, for all materials studied the effect of mill speed on grinding rate was found to be insignificant for sizes finer than about 35 mesh. In the case of wet operation, grinding rates were found to be approximately proportional to the mill speed. The implications of these results are discussed.INTRODUCTIONIt is well known that mill speed has a considerable effect on the grinding rate of the ore particles l-3 For particles of a given size there is an optimum speed at which mill grinding efficiency is maximum (i.e. specific energy consumption is minimum) 3•4. Mill speed can, therefore, be effectively used as a manipulated variable to deal with the disturbances arising from changes in the size and hardness (grinding rate) of the ore being fed to the grinding circuit. Though, it has not been the case so far, with recent developments of ring motors2 and frequency inverters5 a continuous variation of mill speed has now become feasible, and it is expected that mill speed control will soon be a regular feature of plant operation2,6."

Jan 1, 1985

By Wynne Potter

"On the west coast of Cape Breton Island four coal basins have been identified, varying in age and extending from Port Hood northeasterly to Chimney Corner. Those of Chimney Corner - St. Rose in the north and Port Hood in the south belong to the Pennsylvanian Riversdale Group while lying between them are the coal basins of Mabou and Inverness belonging to the younger Pictou Group. Almost all of the coal basins are submarine and coal mining was carried out on all basins at various times. The seams in all basins dip steeply seaward at angles from 10 to 20 degrees but were found to flatten seaward. The coal is ranked as a high volatile C bituminous coal. Ash and sulphur contents are high compared with Sydney coal and the coal has a tendency to spontaneous combustion when stored in large quantities.Of the four basins, the most significant is that of Mabou. At Mabou recent seismic and drilling investigations have indicated that although a sizable reserve of coal may be found offshore the structural problems, particularly faults, and the poor quality of the coal encountered will make it a resource of the future, if at all. Inferred resources have been calculated at 150 million tonnes in four seams over a 10 km2 area and extending 3 km from shore. The quality of the Mabou coals varies with ash, ranging from 5 to 25 per cent and sulphur up to 6 per cent. Calorific value ranges from 25.3 Mj I kg to 31. 7 Mj I kg. The Port Hood and St. Rose -Chimney Corner fields (Fig. 1) contain 16 million and 3 million tonnes respectively, but the Inverness basin is considered to have been depleted. The active mine in this area is the Evans Mine at St. Rose that is currently producing between 30 -50,000 tonnes a year from proven reserves of approximately 3 million tonnes."

Jan 1, 1985

By A. Roy MacLean

"In the Maritimes, there are twelve coal areas. From east to west, these include the Sydney coal field, the St. Rose - Chimney Corner, Inverness, Mabou, Port Hood, Pictou, Colchester - Debert, Springhill, Joggins - Chignecto, Beersville, Lake Stream, and Minto. The first eight are in Nova Scotia while the remaining four are in New Brunswick.In all these areas, the coal was formed during the Carboniferous period, which existed some 300 million years ago. However, within this period not all coal formation took place during the same time. There were three main intervals, which occurred at the time that the Riversdale, Cumberland and Pictou groups were laid down (Hacquebard, 1970). The oldest coals are those of the Riversdale Group. These coals were of rather limited extent, and only a few mineable seams are present, particularly at St. Rose -Chimney Corner and Port Hood. From these two areas only 2 M tons have been extracted, and 'measured' resources of 7 and 9 M tons respectively remain. The Cumberland Group coals are confined to Cumberland County and include the coals of Springhill and Joggins River Herbert -Chignecto. Some 43 M tons have been removed and only 7 M tons of 'measured' coal remain, with an addit10nal 39 M tons of 'inferred' resources. However, there are additional resources at Springhill, which will be discussed in more detail in a later section. The coals of the Pictou Group are the youngest and the most abundant, both in actual number of seams and in regional distnbution. These coals were formed during the Westphalian C and D, a time during which the main coal deposition in Europe also took place. Here belong the coals of the Sydney, Inverness, Mabou, Pictou, Debert, Beersville, Lake Stream and Minto fields. Their total production amounted to 469 M tons or 91 % of the Maritime total of 514 M tons. The remaining resources of all Pictou Group coals have been calculated at 254 M tons of 'measured' coal and 949 M tons of 'inferred' coal. As can readily be seen, the bulk of both past production and remaining resources occur in the Sydney coal field. The Sydney figures represent 73% of total production, and 87% of total 'demonstrated' resources in the Maritime Provinces. Next to Sydney, the Pictou coal field has been the greatest producer, with 59 M tons; it also has the second largest 'measured' resources, amounting to 25 M tons. However in terms of 'inferred' coal resources, the Mabou coal field, ~ith 140 M tons, ranks second to Sydney."

Jan 1, 1985

By W. Petruk, D. R. Morris

"The lead concentrate produced from the volcanogenic base metal ore of Brunswick Mining and Smelting in New Brunswick contains major to trace amounts of iron, zinc, cadmium, arsenic, antimony, copper, silver, selenium, tellurium, bismuth, sulphur, tin, indium, mercury and manganese as impurities. When the concentrate is sintered some of these impurities enter a variety of oxide phases, whereas others precipitate as metals. In the lead blast furnace the oxide phases decompose and the impurities recombine 10 form new phases, most are eventually discharged to the slag. The metals of the sinter remain as metals in the lead blast furnace where even more are produced, and are discharged largely with the lead bullion,IntroductionMany lead concentrates are produced from volcanogenic base metal ores . Such ores contain a wide variety of trace minerals and trace elements , therefore, concentrate s obtained from them will contain the trace elements as impurities . The impurities in the lead concentrate from one such ore, the Brunswick No. 12 deposit of Brunswick Mining and Smelting Corporation (BM S) in the Bathurst area in New Brunswick , were studied as pan of a larger investigation that was conducted to determine the extent of chemical reactions of the sinter within the lead blast furnace(1,2) The lead concentrate was investigated to identify the host mineral s for the impurities, the lead sinter was studied to identify the host phases, and frozen products from different depths within the BMS blast furnace at Belledune, New Brunswick were studied to determine the behaviour of the impurities.T he investigation was performed by pre pa ring polished sections o f the samples and studying them with a reflecting microscope, a scanning electron microscope (SE M) equipped with a Kevex energy dispersive X-ra y analysis system, a microprobe, and a Quantimet 720 image analyzer. The samples were also analyzed by X-ray diffractometer, and individual grains were analyzed by the Debye-Scherrer X-ray powder film method."

Jan 1, 1985

By Davies K. E

Several nuclear techniques have been assessed for application to online conveyor belt analysis of oil yield from Rundle oil shale. The most favourable technique is neutron inelastic scattering which determines the total carbon content of bulk shale samples. Correlations of chemical laboratory assays for 540 Rundle oil shale samples show that oil yield can be predicted from total carbon to within 11 litre/tonne.Laboratory experimental work on 17 bulk samples of Rundle oil shale indicated that carbon and oil yield can be determined to within 0.6 wt per cent and 9 litre/tonne, respectively, using the neutron inelastic scatter technique. A practical neutron inelastic scatter gauge for application on a 23 mm thick reinforced conveyor belt could consist of a 5 curie 241 Am-Be neutron source and a 150 mm diameter x 100 mm thick Nal(TI) detector. With this gauge, the analysis time to achieve a counting statistical error of 6 litre/tonne should be about five minutes.

Jan 1, 1985

By Russell Parrott

Acoustic techniques offer a rapid, economical, non-intrusive method of obtaining information about the stratigraphy and properties of seafloor sediments. During the past decade there has been a dramatic increase in the level of sophistication of high resolution seismic reflection equipment used for seabed and subsurface studies and in the signal processing techniques applied to the data collected with these systems. Processing of data from acoustic sources with repeatable and calibrated output, allows quantitative measures of the reflection coefficient, acoustic attenuation and scattering parameters of the sediments on the seafloor. Graphic recordings of seismic reflection data emphasize the coherent portion of the reflected energy for qualitative estimate of sediment properties and subsurface stratigraphy. Through application of signal processing techniques, quantitative information can be extracted from the coherent and incoherent components of seismic reflection data for estimation of surface character and sediment properties. These calculated parameters can be applied through interpolation between areas of available groundtruth. Acoustic techniques are used extensively to establish the regional geological framework of project areas and can also be used to extrapolate available groundtruth data into previously unsampled areas, and to optimize the design of a sampling program to provide the necessary groundtruth for the survey area.

Jan 1, 1985

By M. M. Papic, J. C. Whitehead

"A sample of Hat Creek coal has been extracted using supercritical aromatic solvents in a laboratory-scale extraction unit. Extract yields in the range 21 to 27 per cent of dry-ash-free coal were obtained.These yields are significantly lower than yields available from high-volatile bituminous coal and some lignites. Thus in a combined extraction/hydrocracking scheme for the production of liquid fuels from Hat Creek coal the char product would exceed that required to supply the energy and hydrogen requirements of the process. Excess char could be used for the production of power or gas for sale.IntroductionThe Supercritical Gas Extraction (SGE) process developed by the U.K. National Coal Board operates in two stages: an extraction stage in which a coal extract is separated from mineral matter and undissolved coal and a subsequent hydrogenation stage.The SGE process is based on the ability of a compressed supercritical fluid to dissolve relatively high molecular weight substrates. It is operated under conditions where a hydrogenrich portion of the coal is selectively extracted in a short residence time extraction stage leaving a hydrogen-deficient char. The process schematic shown in Figure I illustrates that the extract produced is separated from the solvent and passed to a conventional hydroprocessing stage while the char product is utilized in the production of heat, power and hydrogen for the process. An extract yield in the order of 50 per cent dry-ash- free coal represents a ""balanced"" case for such a process in which there is just sufficient char for the provision of these commodities."

Jan 1, 1985

By Willard C. Lacy

Rather than attempting to present a summary of the many and highly varied papers that have been presented at this symposium on sampling and grade control, I will attempt to extract the general philosophy of analysis and approach, and attempt to identify the trend of future developments. First, the term "sampling" is used with its broadest connotations. A sample consists of a representative portion of a larger mass, and must represent the mass not only in the grade of contained metals or minerals, but also in all other respects in terms of mineralogy and mineral quality (1, 5), deleterious materials, recoverability of economic components, physical behavior, geophysical response (I), and even archaeological and environmental aspects (7, 11). The sample must be taken from a locality and in such a manner and quantity that it is representative of the larger rock mass. This calls for complete and accurate geological control and an understanding of the nature and distribution of the contained chemical and physical elements and a record of the effectiveness of the different sampling methods. Second, value of a given mass of ore material is based upon its profitability - the difference between recoverable value and costs to achieve recovery, beneficiation and sale. There is a strong movement in mining geology control toward more complete analysis in determining cutoff grades and in grade control, as illustrated by the kriging of metallurgical recovery factors as well as grade at the Mercur Mine (8). To achieve a "profit- ability factor" as a guide for economic mining practice requires further integration of: 1) the value of contained metal or mineral, 2) percentage recovery of values, 3) dilution of ore with waste rock, 4) addition to, or loss of value as a consequence of by-product materials or deleterious components, 5) cost of producing a saleable product plus mini- mum profit to justify the effort (cutoff), and 6) cost of land restoration (7, 11). All these parameters vary with the rock type, rock structure, mineralogy, depth, geometry, mining and metallurgical methods, but they must be sampled and analyzed if sampling and grade control are to reflect profitability. A wide variety of deposits has been presented at this symposium; each deposit with its own problems and special solutions. Deposits containing high unit-value components, e.g. precious metals and diamonds, present special problems in the obtaining of accurate samples and generally require statistical analysis control methods or may disregard or modify occasional high or occasional low values, based upon experience (12 ) Grade control may be accurate for the long term but may vary for the short term. Bulk sampling is always essential. Deposits containing metals or minerals with low unit value are very sensitive to transport costs, and they are often very sensitive to small amounts of deleterious components or differences in physical or chemical behavior. Problems of sampling and grade control change with the genetic type of deposit, with the stage of deposit development and with the size of the information base. Precious metal epithermal deposits (2, 6, 8), because of rapid vertical zonation and erratic lateral distribution of values, have always been difficult to evaluate and maintain grade control and ore reserves. On the other hand, evaluation and grade control are relatively easy in bulk-low- grade deposits (4, 13). However, these deposits generally have a low margin of profit and are sensitive to mining and beneficiaton costs, price fluctuations and political costs. Industrial mineral deposits (5) often must be evaluated on the basis of their behavior, rather than by chemical analysis. Environmental impact generally increases with the scale of the operation, but certain elements or minerals have especially high impact effects (7, 11). In the exploration phase there is no production control of sampling procedures and careful geological observations are particularly essential. The greatest number of problems is related to the oxidized outcrop where the chemical environment of the ore body has changed and the contained values may have been enriched, depleted or values left unchanged (2, 6). Present evidence suggests that gold values may be very mobile under certain conditions (2, 6) and stable under others. Everything must be sampled in detail. Principal values and by-product or deleterious elements may vary dependent upon their position within the soil profile. Such factors as geomorphic position, erosion rate, vegetation, climate, etc., may affect the interpretation (1, 3). During the development phase it is equally easy to overtest, to have "paralysis by analysis," as to undertest (3, 6). Bulk samplng and testing are

Jan 1, 1985

By R. V. Ramani

"A computer simulation model of a dragline has beer developed for the study of alternative dragline deployment schemes for varying geological and mining conditions. In this paper, the mathematical aspects of the model, the input data and output results are discussed. An application of the model to a coal mine in eastern Kentucky is presented.IntroductionDraglines are very productive machines. To extend their operating ranges, they are operated in several modes such as advance benching, key cut, extended benching and pullback. Unfortunately, these variations result in low machine productivities. Appropriate methods to operate these machines must be developed on the basis of detailed analyses of dragline performance under varying geological and mining conditions. There are several standard engineering procedures for the selection of dragline, and design of a dragline pit (Ramani, Iroegbu and Manula, 1976). However, the complex interrelationship which exists among equipment, methods and natural conditions can be quantified only through orderly and systematic experiments.Computer simulation is well suited to studying these types of equipment selection and method layout problems. Several alternatives can be analyzed in a relatively short time by the modification of input variables. Also, the application of computer simulation models can significantly reduce the manpower and cost required for such analysis."

Jan 1, 1985

By R. A. Hevia

Florida Power and Light is the fifth largest investor-owned electric utility in the country. It has a service territory that covers 35 counties, or 28,000 square miles, 2.5 million customers, and serves 5.6 million people. The total installed capacity is 13,470 MW, generated by four nuclear units, 36 oil and/or gas fired units, and 48 gas turbine units. Traditionally, FPL has been an oil-based utility. In 1979, this dependency on oil became obvious when 42 million barrels of oil were burned during the year. At that time, it was also projected that, based on the current estimates of customer growth and available generation capacity through 1990, FPL's residual fuel oil consumption would increase from the 1979 level of 42 million barrels (6.7 million m3) per year to approximately 55 million barrels (8.7 million m3) per year by the mid-1990's. Concern over this was further aggravated by the fact that it was difficult to estimate both the price and quantity of fuel oil that would be available over the next decade since changes in the world market, decisions by oil producers and refiners, and international political developments would all affect the availability of oil. Also, at that time, the price of residual fuel oil had increased drastically, and there was no reason to think that these prices would soon stabilize. Thus, oil back-out became a primary objective of FPL and since then, FPL has been actively investigating ways to decrease fuel oil consumption.

Jan 1, 1985

By H. W. Schull

The Alligator Ridge gold deposits are located in northwest White Pine County at the southwest end of Alligator Ridge. Alligator Ridge is on the west side of Long Valley in the range of hills that separates Long and Newark valleys. The nearest population center is Ely, about 113 km (70 miles) to the southeast. Access to the Alligator Ridge gold mine from Ely is via US Highway 50 and the Long Valley Ruby Marsh Road. The latitude and longitude is approximately 39° 45' north and 116° 30' west. The Alligator Ridge gold deposits occur in the lower 61 m (200 ft) of the Mississippian-Devonian Pilot Shale formation, a laminated calcareous carbonaceous siltstone. The gold deposits contain carbonaceous, oxide, and jasperoid type gold ore. For more details on the geologic features of the deposits, see Schull, Sutherland, and Ilchik (in press). The discovery story of Alligator Ridge began in the spring of 1976 when the areas mapped as jasperoid on the 1:250,000 scale geologic map of White Pine County (Hose and Blake, 1976) were examined and sampled. Seventeen samples, about 23 kg (50 lb), were collected from an area about 0.65 km2 (0.25 sq mile). Of these 17 samples 10 reported atomic absorption values of less than 0. 1 ppm Au and 7 reported values in the 0.1 to 1.0 ppm Au range. In June of 1976 20 lode claims were staked to claim the area of the rock chip sampling. The claims' end and side center lines were used as a grid for soil sampling. Sample stations were 91 m (300 ft) apart and sample lines were 229 m (750 ft) apart. The samples were sieved to - 180 µm (- 80 mesh). Out of 99 soil samples, seven samples reported Au values in the 0.1 to 1.0 ppm range. Of the seven auriferous samples, five were located over the jasperoid outcrops previously sampled; one over unmineralized Pilot Shale a few hundred m (ft) downslope from some Au-bearing jasperoid; and one from a 15 x 15 m (50 x 50 ft) talus outcrop area of hitherto unnoticed mineralized Pilot Shale. Subsequent sampling, mapping and drilling would show that this 15 X 15 m (50 x 50 ft) outcrop area was the top of the Vantage 1 ore body, about 1.27 Mt (1,400,000 st) of over 3 g/0.9 t (0.11 oz/st) Au. Late in the summer of 1976 about 30 more 1.4 to 2.2 kg (3 to 5 lb) rock chip samples were collected in the course of preliminary geologic mapping. This mapping and sampling showed that the gold-bearing jasperoids occurred at the contact between the Pilot Shale and the underlying Devils Gate Limestone. Rock chip samples of 0.1 ppm Au or greater were restricted to the jasperoids and the mineralized outcrop area of Pilot Shale located by the soil sample survey. Rock chip samples from the area of mineralized Pilot Shale were in the 3 to 5 ppm Au range. Activity resumed in the summer of 1977 with a more detailed soil geochemical survey. The jasperoid areas were defined as large geochemical gold anomalies of values greater than 0.1 ppm and locally greater than 0.2 ppm Au. Soil samples from the area of mineralized Pilot Shale outlined a greater than 0.1 ppm gold anomaly 61 x 152 m (200 x 500 ft) in size. Further geologic mapping showed that elsewhere, even where bleached and silicified, the Pilot Shale areas were geochemically very low in gold (less than 0.1 ppm Au). In November, 1977 twelve rotary percussion drill holes were drilled to test the gold-bearing jasperoid areas and the mineralized Pilot Shale area. Drilling of the jasperoid areas showed that the jasperoids gave way at shallow depths [less than 24 m (80 ft)] to unmineralized unaltered Devils Gate Limestone. A five hole cross pattern was drilled to test the area of mineralized Pilot Shale. Four of the five holes re-

Jan 1, 1985

By W. W. Roepke

The Bureau of Mines has developed an interactive computer program that enables mine operators and others to identify the effect of cut-ting system changes on relative dustiness at the face. The program, which simultaneously evaluates machine parameters, coal seam parame-ters, and operator-controllable parameters, was developed for use on any microcomputer using BASIC programming language. The program allows the user to change one or more of the cutting system parameters at a time to see how these changes affect relative dustiness. A complete program listing and flowchart are included along with operating in-structions and sample outputs. An example showing how to use the program is also included.

Jan 1, 1985

By Jorgen Elbrond, Yve Lizotte

"A mathematical procedure for determining the underground mining level layout which minimizes the total costs of excavation and haulage is described. This procedure has the advantage over previous graphical procedures of being easily amenable to microcomputers. The paper demonstrates through examples how the procedure can be applied to minimizing discounted costs of level layout as well as providing the optimal location of a production shaft.IntroductionIn recent years there have been numerous publications in mining journals concerning the minimization of mine haulage costs. With the rapid escalation of energy costs during the last decade it is not surprising that several studies applying queuing theory, simulation and mathematical programming to mining related transportation problems have been successfully undertaken. Because of the increasing availability of various sizes of computers these techniques have gained considerable popularity as evidenced by the numerous commercial packages presently being marketed.The publications concerned with haulage cost minimization are generally concluded along the lines of ' ... haulage costs at production rate x will be minimized by assigning y units to location z...'. Details about the route followed and whether it guarantees a minimization of costs are seldom considered. Route data has to date been manually resolved and used for input to developed programs. It would appear that no program has been developed to date which simultaneously minimizes costs by both fleet assignment and routing network resolution.Another important factor in transportation problems is the investment cost associated with the routes; road construction costs or, in the case of underground levels, drift excavation costs. Except for special cases the transport network which minimizes haulage costs only will not provide a minimum excavation cost solution.Zarnbo(1) illustrates by graphical and mathematical procedures how central 'facilities' can be located to simultaneously minimize investment in the transport network and haulage costs. Unfortunately these procedures and others recently applied to mine haulage problems do not provide solutions to the generalized problem. Also because these procedures are geared to graphical solutions and hand computations whereby certain possibilities can be 'visually' eliminated, they can be tedious to program and present storage capacity constraints with current microcomputers."

Jan 1, 1985

By William A. Vogely, DeVerle P. Harris

INTRODUCTION Perspective The phrase "minerala resource appraisal" is widely and loosely used to refer to any quantitative description of a naturally occurring source of fuels, metals, or nonmetals. This leads to confusion when mineral resources are so conceived, for the term refers generically to information on stocks-mineral endowment, resources, reserves, and potential supply-that differ in ways that are important in economic analysis. Mineral resource and other stock measures- these are not flows, e.g., the supply of minerals-have precise technical meanings, which are presented in this paper. Quotation marks are used to separate the nontechnical use of mineral resource from the technical. The term appraisal also leads to some con- fusion because it too is loosely used. When an appraisal employs probability and statistical methods, the appropriate term is estimationb, not appraisal or assessment. This paper presents a conceptual framework or mineral resource information which renders technical, or well defined, relationships of mineral endowment to physical attributes of the earth's crust and earth processes, as distinct from economic values, and identifies estimation approaches that lead to different economic measures of stocks and flows. An important result of this approach is the distinction between the relevance of mineral resource information to economic and policy issues about potential sup- ply (stocks) and dynamic supply (flows across time). With regard to policy analysis, this paper recognizes that mineral resource information has a cost as well as an imputed value. Such a treatment implies that there is an optimum state of resource ignorance, or enlightenment, for a given policy issue and that the relevant economic issue is the selection of that information strategy and appraisal methodology that is indicated by the optimum state. Until the initiation of the OPEC oil embargo, the demand for information on mineral re- sources and potential supply was limited to occasional studies commissioned by Congress or the President of the United States. In these, mineral and energy resources remained loosely de- scribed. When quantitative estimates were supplied, they were not rigorously made, and the estimates and the methodology accordingly escaped close scrutiny. Usually, neither the geo- logical nor economic bases for estimation were carefully described or critically examined. The imposition by OPEC nations of the embargo on oil caused a sudden change in the public and scientific demands for specific 'resource" appraisals, especially of oil and of uranium. These

Jan 1, 1985

By R Vuolio, B A. Jonsson

In the center of Helsinki - capital of Finland - extensive blasting operations were carried out during the years 1982 - 84. At the corner of the streets Mannerheimintie and Simonkatu - in the Forum block - about 125,000 cu.m. of rock were blasted to give place for a new modern shopping centre (Fig. 1). Added to this amount of rock another 10,000 cu.m. were blasted for a transport tunnel to an adjacent underground bombshelter (Fig.2) which is to be used as a parking place in peace-time. The blasting work was demanding and difficult to carry out due to old buildings surrounding the work-site as well as computers and other sensitive equipment installed in some of them.

Jan 1, 1985

By J. Keith Haddock

"Introduction The Luscar company, Forestburg Collieries Ltd., operates the Diplomat Mine located 14 km south of Forestburg, Alberta. Production is now at a declining rate from the 1 million tonnes achieved in 1978 as the reserves are being depleted. Three pits are operated at this prairie strip mine utilizing draglines and stripping shovels to uncover the coal. The coal is hauled to a tipple on site for shipment by rail or highway vehicles or is hauled directly to the adjacent Battle River Generating Station. Geology The mine is currently extracting the Battle River seam on the north side of the Battle River. This is the lower-most seam in the Horseshoe Canyon Formation and is the only one present in the area, the upper seams having been eroded by glaciation. The seam lies generally flat and varies from 2.0 to 5.0 metres thick. It lies under glacial till overburden varying in depth from 5.0 to 12.0 metres. The mineable coal extends from the side of the Battle River valley where it outcrops, to approximately 2.5 kilometres to the north. The mine is spread out over a distance of 8.0 kilometres in an east-west direction. Reserves and Coal Quality After over 30 years of mining at Diplomat, there are now less than 1 million tonnes of mineable reserves remaining on the property. With the commencement of coal production from the Paintearth Mine in 1981, supply to the Battle River Generating Station, formerly Diplomat's biggest customer, is being transferred to Paintearth. Rail shipments and domestic supply will continue until reserves are depleted. The coal has the following specifications:"

Jan 1, 1985

By Richard A. Boulay

The effects of capital, operating and debt cost variations on project performance criteria are examined using a theoretical model and an actual case history. On an after-tax basis, financial measurements are found to be most sensitive to operating cost changes, somewhat sensitive to reasonable changes in capital costs and relatively insensitive to interest rate fluctuations.

Jan 1, 1985