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By R. J. Robbins

"For his exceptional ability both as an engineer and entrepreneur in the conception, design, and marketing of underground boring equipment; a technological development which has greatly improved the efficiency and safety of underground mining." Recipient of the 1984 D.C. Jackling Award

Jan 1, 1985

By I. Iwasaki, K. Adam

During wet grinding the electrochemical interactions between grinding media and pyrrhotite not only accelerate media wear but also adversely affect the suede mineral's flotation response. A possible remedy of the adverse effects on floatability by applying electric potentials to grinding media was examined. Flotation tests, Auger electron spectroscopy, and X-ray photoelectron spectroscopy were used to study pyrrhotite surface properties. Although anodic polarization of the steels increased metal loss by corrosion, pyrrhotite flotation recovery was increased. In the case of cathodic polarization, flotation recovery improved somewhat in a narrow range of overpotentials. At higher cathodic overpotentials, however, mineral floatability was progressively lowered although the corrosive wear of grinding media might be reduced.

Jan 1, 1985

By J. Redstone, A. R. Laplante

Sidbec-Normines operates six large iron ore concentrate regrinding mills in parallel and open circuit at its Port-Cartier pelletizing plant. Grinding kinetics in these mills were characterized for slurry densities varying between 70 and 89% solids, using a lumped parameter size discrete model. Optimum grinding conditions were encountered at 83.5 to 84% solids. Higher densities decreased the normalized selection function and increased slurry short-circuiting, yielding a sharply coarser mill discharge. At lower slurry densities, the normalized selection function decreased and the mill discharge coarsened slightly. The grinding kinetic model predicted particle size distributions within the mill. These were found to vary significantly from the feed to the discharge end. This is likely to cause nonlinear breakage kinetics.

Jan 1, 1985

By Thomas P. Bispham

INTRODUCTION From the lender's point of view, the greatest period of risk in a project financing occurs during the construction phase. Therefore, most projects are supported during this phase by completion guarantees supplied by some credit-worthy entity; for example, the project sponsors in the case of a joint venture, such as that of W.R. Grace, Hanna Mining, and Liberty Capital; or by a strong contract with a utility or foreign importer/investor, such as the way North American Coal Corporation has structured many of its transactions. THE PROJECT LOAN REQUEST A project financing is a more complex form of term loan than one using an ongoing corporation's balance sheet as a credit base and, therefore, a potential lender will subject the loan request to a more rigorous analysis. To support this effort, the financial institution will require a more detailed information memorandum to evaluate the credit and technical risks of a project - especially since much of the necessary information is not otherwise available. (See also Gibbs and Sroka paper above in this Chapter) A well-prepared information memorandum will impress prospective lenders with the planning ability and general competence of management. Also, the process of preparing the memorandum will help management understand the true extent of the opportunities and limitations of its venture. Appendix A outlines the topics which comprise a complete information memorandum for a loan request. Of some interest to those seeking to sell a currently-operating mining venture, a similar information memorandum should be prepared i.e., covering the same topics discussed here, for the investment banker to use with potential purchasers. For that purpose, though, one might not want to prepare quite as much detail as for a lender. Appendix B outlines the elements of a reserve evaluation and feasibility study, often called the "Bankable Document." Usually, these studies are prepared by independent engineering consultants for use by potential borrowers and sellers. (Potential purchasers will often contract for a similar study for their use in evaluating an acquisition.) ELEMENTS OF A LOAN INFORMATION MEMORANDUM 1. Outline: The information memorandum should begin with a one-page outline covering such topics as: a. The borrower's name, address, and phone number. b. Principal contact at the borrower. c. Amount of the proposed financing. d. Desired pricing and structure of the proposed financing. This should include a description of the amount and source of equity in the proposed financing. e. Use of the proceeds and timing. 2. Summary: The most important information contained in the memorandum should be summarized in two pages. Note - If the borrower is a recently-formed single-purpose company, then elements 3, 4, and 5 will apply to the guarantors of completion and to the project sponsors. 3. The Borrower: This section is a brief biography of the borrower including such topics as date and state of incorporation, founder(s), lines of business, etc. 4. Capitalization: The borrower's current debt and equity position, including leases and trade debt, with amounts, terms, names, and addresses enumerated. Equity owners, and percentage ownership, should be identified. 5. Historical Financial Statements: If available, a minimum of five year's worth of complete historical financial statements

Jan 1, 1985

By M. L. Jeremic

The massive Pb-Zn-Ag sulfide ore body is originated at the contact between the porphyry (footwall) and volcanic (hanging wall). The ore zone is folded and refolded, which results in two different structural geometries of the individual ore bodies. This requires both shrinkage and cut-and-fill mining methods. Strong bedrock resists caving after shrinkage stope completion, so high stress zones are developed below and above the mined area. The cut-and fill system has a limited destressing mechanism, where the stope walls with a backfill exhibiting stress close to a primitive one. This results in closure deformation of the open stope walls, yielding deformations of crown pillars and roof falls of the wide stope backs.

Jan 1, 1985

By C. Richard Tinsley, Norman Miskelly, S. James Hodge

Construction of the Ranger uranium project, located 230 kms east of Darwin in the Northern Territory, Australia, commenced in January 1979. Energy Resources of Australia Ltd (ERA) was incorporated in February 1980 to acquire all the rights in the project. The total cost to ERA of these rights was A$407 million, made up of A$125 million in cash to the Federal Government and the issue of 125 million A$1.00 shares at par, plus a payment of A$16 million in cash to each of Peko-Wallsend Ltd. (Peko) and EZ Industries Ltd. (EZ). ERA's cash requirements to complete the project were estimated in October 1980 to be A$553 million. Project loans, secured by first ranking debenture stock, were arranged for a total of US$390 million, while second-ranking debenture loans totalling A$60 million were [ ] obtained from the vendors, Peko and EZ. Overseas participants (power utilities who had agreed to purchase uranium yellowcake under contract) arranged to take up 25% of the equity capital for A$102.5 million; Peko and EZ were allotted 30.5% each as satisfaction of vendors' consideration; and 14% representing A$57.5 million was issued to Australian residents in an underwritten public flotation in November, 1980. The loan and equity financing arrangements required the successful resolution of many complex and interlocking factors, including technical and economic feasibility, agreement with Aboriginal interests, compliance with Government policies, and securing of sales contracts.

Jan 1, 1985

By George I. Smith

Jan 1, 1985

By David S. Butts

The high cost of energy has made many solution mining corporations turn from fuel consuming evaporators to solar energy and solar ponds. The generally held concept of a solar pond is an area enclosed by dikes into which brine is pumped, water evaporated by the sun, and the resulting salts scraped from the bottom of the pond. This paper will show that solar ponding is not simple. It is a science involving six main areas. These areas are (1) land conditions, (2) meteorology, (3) fresh water, (4) accessibility, (5) manpower and (6) mineral resources. Each area is discussed to identify important parameters that must be investigated before the viability of a solar pond complex can be established as a mineral recovery step.

Jan 1, 1985

By J. E. Schiller, S. E. Khalafalla

To improve technology for treating process water, US Bureau of Mines research has shown that magnesium oxide (MgO) has many advantages over lime or caustic soda for precipitating heavy metals. Sludge produced by MgO occupies only 0.2-0.3 times as much volume as the precipitate made wing a soluble base. While a settled, lime-formed precipitate is easily resuspended, the MgO-metal hydroxide sludge becomes cemented together on standing. Settling of the metal hydroxides from a dilute suspension is more complete than precipitates formed with other bases. Virtually any metal that can be precipitated by raising the pH can be treated using MgO. A three fold to fourfold stoichiometric excess of solid reagent is added. The mixture is reacted for five to 10 minutes. Polymer is added, and settling or filtration completes the process. Because of the greater cost of MgO compared with lime, large-scale practice of this technology will probably be limited to water containing 50 mg/L (3 gr per gal) or less of dissolved metals. For such dilute solutions, chemicals are not a large fraction of total treatment costs, so more desirable sludge properties might justify higher chemical expenses. While the MgO process is technically suitable for widespread application, the extent to which it is adopted will probably be determined by a trade-off between the greater cost of MgO compared with lime and the superior properties of the precipitates and their corresponding ultimate disposal costs.

Jan 1, 1985

By P. Campbell, E. M. Gardy, L. Hachkowski

Introduction The efficient process control of a uranium mill and its associated mining operation requires a nearly continuous knowledge of the uranium concentration in the ore. Generally, the approach is to use laboratory assays of grab samples from the mill feed belt. In some cases, elaborate and expensive systems have been used to ensure random sampling, but even with these systems, mass-balance discrepancies still exist. There is a requirement for an on-line instrument that can give a prompt, accurate analysis of a large portion of the feed stock. The authors have recently evaluated a laboratory system that achieves these goals using neutron activation and delayed neutron counting. The development of the on-line uranium ore analyzer is a consequence of previous work done at the Whiteshell Nuclear Research Establishment (WNRE) (Campbell et al., 1978 and 1981), and is based on the emission of delayed neutrons after the neutron irradiation of fissionable materials. The mechanism of delayed neutron emission has been described (Keepin, 1965), but briefly is as follows. The fission fragments resulting from irradiation are in an excited state. Certain of these delayed fission products, precursors, decay to a more stable state by the emission of a delayed neutron. The delayed neutrons can be divided into six groups with effective half-lives ranging from 0.2-55 sec. It is important to note that more than 50% of the delayed neutrons are emitted within the first 6 sec after irradiation; this has an influence on the design of the analysis instrument. Measurement Cycle The measurement cycle involves a neutron irradiation, a delay time, and a counting period. The laboratory demonstration model of the ore analyzer comprises a californium-252 neutron source, a source chamber, a pneumatic transfer facility, and a neutron irradiation and counting module [(Fig. 1)]. The ore sample is placed in the irradiation chamber. The neutron source is transferred to the center of the chamber for a 5-sec irradiation while the helium-3 thermal neutron detectors are switched off. As the source returns to the storage chamber, the detectors are switched on and the delayed neutrons counted. The total assay cycle is 16 sec. The current instrument design calls for the ore to be cut from the main belt every 16 sec by a mechanical arm and dropped into the analyzer directly, or via another belt. The cycle starts when there is a sufficient mass of ore in the irradiation chamber to depress a switch and stops when the delayed neutron count is finished. The ore is then dropped through the bottom of the analyzer chamber and returned to the main belt. The counts from each cycle are accumulated and the data reduced to give the desired information.

Jan 1, 1985

By H. W. Schreiber, H. R. Babitzke, R. E. Rodriquez, Patterson J. A., C. D. Masters, J. J. Schanz, R. B. McCammon, E. A. Noble, P. M. Krishna

A five-year effort by the ASTM subcommittee E10.14 on uranium resource evaluation has culminated in the approval of E901-82, Classification System for Uranium Resources (ASTM Standard E901-82, April 1983). The standard classification was prepared with participation of representatives from the US Department of Energy, the US Department of Interior's Geological Survey and Bureau Mines, utilities, and consultants. The classification a resource is based on level of knowledge and the economic producibility of the resource at a given time. Alphanumeric identifiers are used rather than words to avoid confusion with existing terms, definitions, and classifications. An example demonstrates the dynamic nature of the process of classification and attests to the necessity of addressing both the aggregate needs of broad-scale resource planning and the specific needs of individual property evaluation. Problems that remain infixing the classification a given uranium resource include uncertainty in estimating the quantity of undiscovered resources and resolving differences that may exist in deciding when the drill-hole spacing is adequate to determine the tonnage and grade of discovered resources.

Jan 1, 1985

By Leo L. Van Sambeek

An understanding of the creep and yield behavior of salt is required for the rock mechanics design aspects of solution mining. Most previous studies of salt behavior have been performed on small specimens of salt under homogeneous stress conditions; i.e., uniaxial and triaxial tests on specimens <0.002 m3. The corejacking test is a larger scale test (-0.75 m3) with inhomogeneous stress conditions that provides data on the structural response of salt. Interpretation of the responses from eight such corejacking tests provides verification of the requisite constitutive parameters required to predict salt behavior at different levels of stress and temperature. These constitutive parameters are not those studied in the usual laboratory test. Corejacking test results show almost inseparable elastic and plastic closures simultaneous with the corejack pressurization. Very rapid closure (on a relative basis) continues for a period of time after the pressurization. This rapid closure is shown to be both continuing yield deformation and creep deformation. After the period of rapid closure, the closure rate approaches a constant value. Numerical modeling of the corejack tests using a creep law containing both transient and steady-state creep functions does not provide results that agree with the responses measured in the corejack tests. Using an experimental design technique plus additional numerical modeling that includes yielding of the salt, results in identification of the significant parameters which allow agreement. The significance of the results from the study is demonstrated by comparing the postulated stability and creep response of a solution-mined cavern using the previous understanding of salt behavior and the understanding developed from this study.

Jan 1, 1985

By C. D. Jardine, D. G. Patton

Rapidly increasing energy costs and more rigid customer quality requirements necessitate improved control of pelletizing processes. With the introduction of dedicated microprocessor-based controllers, sophisticated control strategies are now possible. An application of this technology at Carol Project has resulted in fuel savings, improved pellet quality, and standardization of operating procedures. This was accomplished with no production loss by using a "building block" approach to design and equipment selection.

Jan 1, 1985

By C. F. de Mendonca, T. Kater, R. P. de Souza

Since 1976, Cia Vale do Rio Doce (CVRD) has carried out tests to develop a type of pellet made with an organic binder. Peridur is one binder that showed it could be used in industrial plants. Extensive tests were run in CVRD&apos;s pilot plant. The results are presented in this paper. The decision was made to carry out an industrial production of 50 ht (55,000 st) of pellets. The results are shown in this paper. No detrimental effects of the Peridur were observed in either the process or in product quality.

Jan 1, 1985

By J. L. Whitlock

An attached growth aerobic biological treatment process has been developed at Homestake Mining Co.&apos;s Lead operation which not only oxidizes free and complexed cyanides, including the stable iron complexed cyanides, but also thiocyanate, and the oxidation byproduct ammonia. Through the employment of a mutant strain of bacteria which has been gradually and specifically acclimated to the waste, these potential pollutants are mineralized to relatively harmless sulfates, carbonates, and nitrates. The resultant effluent, through toxicological testing, has been shown compatible with the receiving stream, which serves as a cold water marginal trout fishery.

Jan 1, 1985

By H. W. Schreiber, G. R. Castle

INTRODUCTION The small mining company faces the dilemma of how to finance the development of its properties. Many of these small companies don&apos;t have the financial resources to pay for development costs from their own funds and frequently they do not even have the financial strength to permit them to borrow the money needed for development. A project financing can sometimes be arranged in such a way as to solve this dilemma. A typical project financing will not provide the answer to the "little guy&apos;s" problem because most project financings require that the sponsors of the project provide completion undertakings and sometimes other undertakings. These undertakings are often a prerequisite to obtaining financing, and if the sponsor is not financially strong enough to provide the comfort that the lenders require, then the sponsor will have difficulty obtaining financing no matter what undertakings are offered. However, with a little imagination and the right set of circumstances, a project financing can sometimes provide the solution to the small mining company&apos;s problem. The Strathcona Sound Project is unusually suited as a case study because the sponsor, Mineral Resources International Limited,(MRI) was able to arrange a project financing for the development of the project even though the lenders probably would not have been willing to loan a similar amount of money direct to MRI based on the full faith and credit of MRI&apos;s balance sheet. The way that MRI was able to arrange this financing makes for an interesting story. THE CASE In early 1974, MRI owned 100% of a small to medium sized zinc - lead - silver massive sulfide deposit (Property) located 475 miles north of the Arctic Circle less than two miles from deep water on Strathcona Sound which is a shipping zone in the Canadian Arctic. The Property was situated at a desolate location except for an Eskimo settlement (Arctic Bay) which was about 20 miles west of the Property. In other words, the project required that complete infrastructure would need to be installed in this far northern location. Independent reserve and feasibility studies (Study) had been completed on the Property which confirmed a total of 6,825,000 tons of reserves classified and summarized as shown below on Table I: [ ] These reserves were based on 229 diamond drill holes totalling 58,909 feet and were established on a cut-off grade of 7% zinc and a minimum mining height of seven feet. The overall mining recovery rate was estimated at not less than 85% and not more than 90%. The feasibility study indicated that it would cost an estimated $45,044,000 to develop an underground mine, a concentrator, a town-site, a power plant, storage facility, loading dock, a tailings disposal area and an airstrip on the Property with an annual capacity of 525,000 tons of ore per year. The construction period was expected to take two years and projected capital costs were broken down as set forth below on Table II:

Jan 1, 1985

By V. G. Cawagdan, E. M. Sacris

The performance of the grinding circuit, from the initial stages of operation to the present, is discussed. The mill efficiency as measured by the Bond (Bond and Maxson, 1943) grindability data and the operating work index is presented. The objective was to produce a sand cyclone overflow containing not more than 6% 210 µm (+ 65 mesh). This has never been attained, even at low milling rates. Significant improvements in throughput were achieved by instituting equipment changes and process modifications within the grinding circuit. Grind improvements were achieved with enlargement of cyclone spigots, grinding at reduced densities, and decreasing the opening of the ball mill discharge. Additional grinding capacity was realized by converting the concentrate regrinding mill into a secondary ball mill. The previous 20% 210 µm (+ 65 mesh) grind improved to under 15% 210 µm (+ 65 mesh). The latest approach to solving the coarse grind problem is also discussed.

Jan 1, 1985

By Phyllis A. Lyday

Jan 1, 1985

Diesel powered machines are doing some specific operations in the cyclic order required by the technical process. The dynamics of this process in certain conditions has an essential influence on environmental health conditions in the working area. The main purpose of this paper is to show, using computer simulation, how the movement (dynamic) of diesel vehicles effects environmental health standards and also how to determine the required air quantity for ventilation.

Jan 1, 1985

By Richard A. Arnold

The evolution of planning processes in the United States from the early 1900&apos;s is briefly examined. From one year operating budgets, planning processes have evolved into sophisticated analyses of alternative long-term future strategies and the management issues and practices which relate to their implementation. Increasing complexity within the business environment has led to numerous planning methodologies and extensive use of computers to analyze operating and financial information. All of these developments, however, have not supplanted the real need for decision-makers to continue to give important weight to the intuitive or soft data inputs into the planning process.

Jan 1, 1985