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By F. J. Klingler, R. Hausmann, K. M. Swaffar, J. C. Neyer

This paper presents the results of a study of case histories of projects on which sinking caissons were used to construct shafts for tunnel construction and other underground works. Design methodologies are reviewed with respect to the impact of soil and groundwater conditions on the performance and constructability of sinking caissons. Factors which have led to success or failure are reviewed and evaluated, and recommendations for future investigation, design and construction activities are presented. Cost data for five recent projects are reviewed and compared to the cost of shaft installation by other means.

Jan 1, 1997

By William Seymour, L. D. Schmidt

"FOREWORDAmong many problems created by World War II, the question of supplies and distribution of raw materials is of outstanding importance. One of the most critical of these raw materials is fuel, and of the fuels coal is of primary importance. The normal consumption of coal has increased greatly owing to the increased tempo of industry in general. It has been necessary to divert much of the fuel oil, gasoline, etc., ordinarily used for industrial and domestic purposes, to supply the enormous demands of mechanized warfare. Coal must be provided to replace this fuel. Furthermore, the enormous increase in the production of steel has increased the demand for coking coals to a critical point.The Solid Fuels Administration for War is encouraging the use of anthracite fines in the production of byproduct coke for blast furnaces for three reasons. First, the production of anthracite for domestic use; is hampered by the inability to find a market for the fines incidental to the production of domestic sizes. Second, the shortage of low-volatile coking coal is acute, and any action that will decrease the quantity of low-volatile coal required will relieve the situation. As will be seen in this report, there is some promise that use of anthracite fines in coke-oven mixes will lower the amounts of low-volatile coal required. Third, utilization of those anthracite fines will tend also to alleviate the general fuel shortage. It has been the privilege of the Bureau of Mines to cooperate with the Solid Fuels Administration in the technical problems involved."

Apr 1, 1945

By Aruna Mangalpady, Sandeep Kumar Jeripotula, Govinda Raj Mandela

Injuries due to work-related musculoskeletal disorders (WMSDs) are not uncommon in heavy industry like mining. Researchers acknowledged that occupational exposure to ergonomic risk factors is the chief causative factor in the development ofWMSDs. The aim of this study was to perform an ergonomic assessment of musculoskeletal disorders among surface mine workers in India. Standardized Nordic Questionnaire was used to collect subjective response from 500 workers. A stratified random sampling method according to surface mining work activity type was used to obtain the sample. Data was collected by means of a structured questionnaire, and the Statistical Package for Social Sciences (SPSS) was used to analyze data using descriptive and inferential statistical methods. A response rate of 85% was obtained out of 500 targeted groups. TheWMSDs prevalence for the 12-month period was estimated to be 44.23%. The mean and standard deviation of workers’ age were 41.31and 8.927, respectively. The study has shown that the operators of dumpers, dozers, and graders along with electricians were found to be the most susceptible to developWMSD problems. Among the most affected body parts, back disorder reported the highest. Further, it was found that working with static posture over the longer duration has a significant association with the lower back disorder (with p = 0.020) and bouncing and jarring has also significantly associated with the lower back disorder (with p = 0.023). Similarly, a significant association was found between repetitive work and neck pain (with p = 0.016). The study depicted a significant association between ergonomic hazards and WMSDs, like working with prolonged static posture, bouncing and jarring, and repetitive work.

Mar 13, 2020

By R. V. Typliski, G. J. Labarre

"Hudson Bay Mining and Smelting Co., Limited, Flin Flon, Manitoba, Canada, has developed a metallurgical wastewater treatment system employing two-stage lime neutralization, sludge recirculation and conventional mechanical thickening.Laboratory investigations, initiated in 1970, led to the construction of a pilot-scale minewater treatment plant, at Schist Lake Mine, in early 1971. This plant, treating 600 cubic meters/day wastewater containing 30-60 mg/l zinc, demonstrated metal extraction efficiencies of 99% under normal operating conditions.On the basis of this pilot work, a second pilot-scale treatment system was established in 1975 at the Flin Flon metallurgical plant to treat zinc refinery process waste water. Through numerous improvements, including automatic control equipment, the system has evolved to a full-scale operation capable of treating 800 cubic meters/ day wastewater containing 4-11 gm/l zinc. Treated effluent contains 0.2-20 mgll zinc. Hydroxide sludge produced returns to the metallurgical process for recovery of metals while clarified effluent discharges to waste.With the system, Hudson Bay Mining has achieved its original goal: the reduction of environmental contamination, while realizing ii return from metal recovery."

Jan 1, 1980

By Robert V. Spencer

"This report describes an examination and preliminary exploration of the Magnet Cove Rutile Co. property in Hot Spring County, Ark. The company in 1944 was producing titania for use in-the welding-rod and metallurgical industries but later ceased operations. The deposit appeared to contain potential reserves of rutile ore, and the Bureau of lanes in 1945 conducted an examination designed (1) to obtain samples for ore-dressing tests and (2) to gather information regarding the grade, character, and size of the deposit. This report presents the data obtained by geologic mapping, geophysical surveying, churn drilling, and core drilling. Beneficiation tests are being made at the Bureau of Mines Rolla, No. station, on the samples taken and will be discussed in a later report.The Magnet Cove operation had been called to the attention of the Bureau of Mines, and in view of the potential reserve of titanium-bearing material, it was decided to obtain samples for ore-dressing tests. Churn drilling was selected as a means of obtaining representative samples, and geologic mapping and geophysical surveying were done to throw more light on the nature of the deposit. Subsequently, a few holes were core-drilled.The property contains the NE1/4, W1/2 fractional NW1/4 and 82 acres of the N part of SE of sec. 18, and -29 acres of the SW1/4 NW1/4 sec. 17, all in T. 3 S., R. 17 W., Hot Spring County, Ark. The mine and mill are about 1 mile by graveled road northeast of U. S. Highway 270, a paved road connecting Malvern, 10 miles south and Hot Springs, 12 miles west. The area is served by two railroads, the Missouri Pacific, which passes through Malvern and Hot Springs and the Chicago, Rock Island & Pacific,,has a line connecting Malvern and Hot Springs an passes about 2 miles south of the property. A natural-gas pipe line and an electric power line reach the property."

Sep 1, 1946

By Lewis M. McNay

The Bureau of Hines and industry (mining and private) have studied the placement of hydraulic sandfill in deep-vein mines to identify existing problems and to develop techniques to strengthen the support characteristics of the sandfill. The hydraulic sandfill system, physical properties of typical classified mill tailings, and properties of sandfill modified by various techniques are discussed. Computer analysis has defined the support capability of various sandfills using actual mine field data as a reference base. High-modulus sandfill can provide adequate support in deep-vein mines to alleviate rock and pillar stresses and to reduce rock-burst incidence.

Jan 1, 1975

By J. A. Morgan, W. A. Barclay, J. C. Pedersen, I. C. Campbell, D. S. Bubar, R. P. Taylor

"Abstract - The Lilypad Lakes property is host to a group of Ta-mineralized dikes that occur over an area of at least 10 km2. Field relationships are consistent with a syn- to late syn-tectonic timing for their emplacement (with respect to the major regional D1 episode of deformation), with several of the dikes exhibiting a steeply dipping, open, S- to M- to Z-shaped fold geometry. Individual dikes range up to 30 m wide (Rubellite Dyke, Pollucite Dyke), have strike lengths of up to 750 m (e.g., JJ Dyke), and are continuous to depths of greater than 250 m (e.g., Rubellite Dyke, Pollucite Dyke). Typically, they display sharp intrusive contacts characterized by the development of thin, holmquistite-rich haloes. The Tamineralized dikes are comprised of silica- and alumina-rich, sodic, granitic pegmatites that display extreme levels of geochemical fractionation (K/Rb typically < 10.0, as low as 2.2; Nb/Ta typically < 0.20, as low as 0.03), and enrichments in an economically important group of lithophile elements, most notably Li, Rb, Cs, and Ta. Geochemical assays of individual surface grab and drill core samples have yielded values as high as 1.51 wt.% Li2O, 1.25 wt.% Rb2O, 6.21 wt.% Cs2O, and 0.108 wt.% Ta2O5. Diamond drilling has established the presence of wide (~20 m), potentially ore-grade intersections of Ta mineralization (>0.045 wt.% Ta2O5) in both the Rubellite and the Pollucite Dykes.Three Ta-oxide minerals (microlite, wodginite, manganotantalite) of primary origin predominate in the Ta-mineralized dikes, where they occur as fine, disseminated grains in the albite-rich pegmatite matrix. The sequence of crystallization is typically manganotantalite wodginite microlite, which conforms to a well-established paragenetic sequence for rare-element granitic pegmatites in general. All three of the primary Ta oxides are characterized by a high degree of chemical purity (e.g., average Ta concentrations in microlite from 77-79 wt.% Ta2O5), a compositional feature consistent with the extreme levels of geochemical fractionation characteristic of the host granitic pegmatites, and one that indicates that the Lilypad Lakes pegmatites are likely to produce Ta mineral concentrates of the very highest quality.Locally, a second generation of Ta minerals is present, restricted to small vugs in the pegmatite matrix that are surrounded by fine aggregates of K-rich mica or clay. The secondary Ta minerals are dominated by microlite, which is typically intergrown with fluorite and Fe-sulphides, and is distinguished from its primary counterpart by its lower Ta content (around 70 wt.% Ta2O5) and much higher concentration of uranium (up to 9 wt.% UO2). Also, secondary microlite consistently yields low analytical totals from electron microprobe analysis, suggesting that it is H2O-rich. The presence of this second, vug-related generation of microlite, together with the occurrence of localized networks of crosscutting fractures that host high concentrations of Cs and Rb (in the minerals pollucite and Rb-Kfeldspar), suggests that a late-stage, fluid-dominated metasomatic/hydrothermal event may have been important in certain sections of the dikes, and has effected a redistribution of the economically important elements Ta and Cs."

Jan 1, 2005

By G. Deschênes

In Part I of the work, gold and silver were shown to be efficiently extracted from Kupol samples using lead nitrate in a cyanide leach system. In Part II, a comparison of the technical and economic merits of a new technology called CELP (CANMET Enhanced Leaching Process) was made with the cyanidation/AVR(Acidification-Volatilization-Recycling) process using 8 metallurgical variability samples as well as a large composite sample which represented initial two years of Kupol mill feed. The composite sample had 33.4 g/t Au and 289 g/t Ag. The metallurgical demonstrated that the CELP produced very similar gold and silver leach extractions compared to the standard Cyanidation /AVR leach conditions at 1/2 the cyanide concentration (1000 ppm NaCN in CELP vs. 2000 ppm for cyanidation/AVR leach conditions). It was estimated that the total cost per ton, were approximately the same for the two technologies (total cost of the CELP with the use of Merrill-Crowe at $46.48/ton, with cyanidation/AVR at $46.13/ton). However, the implementation of the CELP would eliminate a capital expenditure of approximately $5 million. Eight variability samples used to confirm the previous results showed that on average the gold and silver leach extractions with the CELP and the feasibility leach conditions were very similar for gold extractions, but 4.6% higher for silver extractions compared to the conventional cyanidation. The decision was made to remove AVR cyanide recovery from the Kupol flowsheet and implement the CELP at Kupol. The ability to use conventional leach equipment with the CELP and simplify the flowsheet was also a factor, given the remote location of the Kupol Mine.

Jan 1, 2009

By William Gleason

Despite a global slowdown in most mining sectors, Caterpillar, the world?s largest mining equipment maker continues to forge ahead with new, and improved offerings to the global mining industry. On Nov. 10, as part of its Loading and Hauling Mining Focus Session at its Tinaja Hills proving grounds south of Tucson, AZ, Caterpillar unveiled to customers and media its two latest mining products, the 994K wheel loader and 6020B hydraulic shovel. The Caterpillar 994K wheel loader builds on a nearly 25-year history of the 994 model but with one noticeable difference ? the 994K is bigger ? much bigger. Weighing in at 239,142 kg (527,218 lb) the 994 K is up to 20 percent larger and comes with up to 30 percent increase in payload capacity. This behemoth of a machine is currently being tested at Caterpillar?s Tucson Proving Grounds, Anglo Gold Ashanti?s Cripple Creek and Victor gold mine in Colorado and Taseko?s Gibraltor copper and molybdenum mine in British Columbia, Canada.

By J Young, S Yu, P Moyo, M Powell, A Musunuri, B Bonfils, S Kanchibotla, P Yaroshak, V Jokovic

The appropriate design of liners continues to be an issue on many mills worldwide. Loss of milling capacity especially at liner change, uneven wear lives along the mill, substantial scrap on worn liners, excess mill down-time, undesirably short and unreliable wear lives are all common issues. This paper presents a designed approach to liner optimisation that follows a logical path of initial design and step-wise improvements based on liner wear monitoring. The target is to have a good liner design from start-up, then tune the profiles, heights and thicknesses based on wear monitoring. This is conducted as a team of liner specialist, site personnel and liner supplier. The application to the Pustynnoye SAG mill of JSC Altynalmas in Kazakhstan is presented. The increase in liner life by around 50% along with increased mill throughput of over 20% illustrate the huge benefit of the cooperative triumvirate approach through the gains that can be made in productivity and reduced liner costs.CITATION:Powell, M, Kanchibotla, S, Jokovic, V, Hilden, M, Bonfils, B, Musunuri, A, Moyo, P, Yu, S, Young, J, Yaroshak, P, Yalcin, E and Gorain, B, 2018. Advanced mine to mill application at the Barrick Cortez mine, in Proceedings 14th AusIMM Mill Operators&#39; Conference 2018, pp 177–196 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By Malcolm Scoble, Nick Vagenas, Greg Baiden

Recent advances in underground communications technology have demonstrated the feasibility of teleoperation and automation in underground metal mines. One major challenge lies in the automation of underground mobile machines from surface, with the potential to reduce significantly the need for human involvement in underground operations. This paper reviews the evolution of underground metal mining automation, principally related to the development of teleoperation and automation of mobile mining machines. Examples of prototype systems are given and the associated benefits that have been observed are reviewed.

Jan 1, 1997

By AIME AIME

The Institute Headquarters at Spokane was established at the Spokane Hotel, and included a Bureau of Information for the benefit and comfort of members and guests of the party during the time of the meeting. The first session, held Tuesday afternoon, Sept. 28, 1909, in the beautiful Convention Hall ,of Masonic Temple, was called to order by Mr. E. J. Roberts, Chairman of the Spokane Local Committee, who introduced Mr. J. C. Ralston, City Engineer, representing the Mayor of Spokane and the Spokane Chamber of Commerce. Mr. Ralston extended to the members and guests of the Institute a cordial welcome to the city of Spokane, substantially as follows:

Dec 1, 1909

By J OÆDriscoll, R Butler, L Winter

The iron ore mining district of Labrador West and adjacent Quebec is Canada&apos;s largest iron ore producer with almost 50 years of production. The area is currently experiencing a period of renewed activity not seen in decades that includes new mine development, mine expansion and exploration for new iron ore resources. All of the past and present production and exploration programs in the district are centred on the Lower Proterozoic Superior-type iron formations of the Knob Lake Group, located within the Grenville tectonic province of the Canadian Shield. The Knob Lake Group is a continental margin sedimentary sequence which was deformed and subjected to greenschist to upper amphibolite facies metamorphism during the Grenville orogeny. Regional deformation and metamorphism plays a key role in making the iron formation of the Knob Lake Group economic. The distribution of orebodies in the district is controlled by superimposed F1/F2 synclines which causes thickening of the iron formation through repetition. Ore mineralogy consists of specular haematite, magnetite and locally martite with quartz as the major gangue mineral. Regional metamorphism has caused an increase in grain size of the ore minerals making it more amenable to concentrating and pelletising. Altius has been active in Labrador West since 2003 and is now the second largest licence holder in the district with several iron ore exploration projects. The Kamistiatusset project is located in the heart of the region&apos;s transportation, power and mining infrastructure. The property has seen limited previous exploration, but covers several significant iron ore prospects. Work by Altius includes a helicopter-borne magnetic survey, ground magnetic and gravity surveys, geological mapping, sampling and 6000 m of diamond core drilling all of which confirm both a favourable geologic setting and ore mineralogy.

Jan 1, 2009

By T Mattiske

The Fimiston Open Pit (commonly referred to as the æSuper PitÆ) is a part of the Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM) operation in Kalgoorlie-Boulder. KCGM manages the Fimiston Open Pit, the Mt Charlotte underground mine, the Fimiston Mill and the Gidji Roaster for its Joint Venture Owners, Newmont and Barrick Australia. KCGM produces up to 850 000 ounces of gold per year. The KCGM operations are located on the historical Golden Mile on the outskirts of the City of Kalgoorlie-Boulder, about 600 kilometres east of Perth Western Australia. This traditionally underground mining centre has been worked since 1893, yielding in excess of 50 Moz of gold from ore with an average head grade of 10 g/t. This represents approximately ten per cent of the gold produced in Australia and one per cent of the gold produced in the world. The Fimiston Open Pit is essentially an aggregation of what were known as the Judd, South, Paringa, Croesus/Eclipse, Central, Brownhill, Drysdale, Morrison, North and Horseshoe pits into one continuous large-scale operation. The old Fimiston Underground Operations (included the Main, Croesus, Chaffers, Lake View, and Perseverance shafts) were also located within the area of the Fimiston Open Pit. The underground operations closed in 1992 due to high mining costs.

Jan 1, 2002

By J Siliézar

The Ernest Henry Mine (EHM) is situated 38 km north-east of Cloncurry in the Mount Isa – Cloncurry mineral district of northwest Queensland. The EHM orebody is an iron oxide copper gold deposit with an average grade of one per cent copper, 0.5 g/t gold and 23 per cent magnetite, with current reserves of approximately 88 Mt.The copper concentrator is a single line plant with a nominal throughput rate of 1300 tonnes per hour. An average of 350 000 tonnes of concentrate is produced each year containing around 100 000 tonnes of copper metal and 120 000 troy ounces of gold.In December 2009, Xstrata Copper announced approval of a $589 M investment to extend the life of EHM to at least 2024, through the transformation of open pit mining operations to a major underground mine together with the construction of an associated magnetite extraction plant.The EHM magnetite plant extracts the magnetite from the copper concentrator’s tailings stream. It will produce approximately 1.2 Mt of magnetite concentrate per annum at full capacity for export to Asia, making EHM Queensland’s first iron ore concentrate exporter. Construction of the magnetite extraction plant commenced in July 2010 and was completed in January 2011.This paper gives an overview of the development of the EHM magnetite extraction plant flow sheet from the early mineralogy and laboratory test work through to the plant commissioning and early operation of the base plant. It has a major focus on the commissioning learnings from the plant start-up and includes a review of the operational performance of the plant versus original design and expectations.

Jul 11, 2011

By R J. Beazley, M C. Woods

"The International Cyanide Management Code (the Code) is a voluntary industry program for gold miners and associated cyanide transporters and cyanide producers. By becoming a signatory, a company commits to follow the CodeÆs principles and implement its standards of practice.Signatories are required to undergo an initial certification audit within three years and a recertification audit every subsequent three years. Recertification audits evaluate compliance over the preceding three-year period. This approach presents a number of challenges. Golder Associates has undertaken in excess of 75 initial certification audits and 25 recertification audits; more than any other audit firm. This paper outlines some of the challenges identified and lessons learnt from the recertification audit process. Central to the process is the challenge for organisations to maintain commitment to compliance over the full three-year period and effectively address deficiencies or non-conformances that may have occurred during that period in a prompt manner.The International Cyanide Management Institute (ICMI) provides guidance in evaluating deficiencies or non-conformances, which requires consideration of the æcauseÆ, ædurationÆ and æongoing compliance effortsÆ and an assessment of the concept of ægood faithÆ in response actions. Golder AssociatesÆ experience with the recertification process highlights some common deficiencies with Code compliance programs, such as: system breakdowns (leading to ineffective communication between departments or loss of information) exceedance of discharge limits inadequate inspections, maintenance activities and associated record-keeping.Such deficiencies can be attributed to: personnel changes organisational changes or structures management systems (eg integrated or standalone) awareness and interpretation of Code requirements transparency of management decisions with Code implications.We have identified that ongoing programed assessment is an effective strategy in maintaining Code compliance.CITATION:Beazley, R J and Woods, M C, 2013. Cyanide code recertification - the three-year challenge, in Proceedings World Gold 2013, pp 247-254 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 26, 2013

By A. J. Kauffman

The alluvial deposits of the Pacific Northwest have been investigated and worked with varying degrees of intensity since about the middle of the 19th century. Earlier efforts, of course, were centered about the placer-gold content of the deposits; later, the Oregon beach sands were exploited for their chrome content, and, still more recently, deposits in Idaho were worked for their content of monazite, a rare-earth mineral which also contains significant quantities of thorium. The composition of alluvial deposits seems to depend mainly upon the nature of the source rock from which the detrital material was derived and upon the resistance of the individual mineral grains to the agencies of weathering and transportation. The processes of crushing and concentration used in ore dressing are applied in a leisurely but nonetheless effective manner when exposed rock masses are eroded by natural forces. Weathering effects a continuous disintegration and chemical decomposition, wherein resistant minerals are set free as individual grains and new minerals are formed. Erosion carries these detrital products down the slopes into natural waterways, where a mechanical separation of heavy particles from light is accomplished by the running water. The accumulation of such resistant, heavy particles through the ages has resulted in formation of the black-sand deposits. In addition to the associated gangue minerals, heavy sand deposits in the Pacific Northwest may contain the following constituents of possible economic value: Gold, platinum, chromite, ilmenite, magnetite, garnet, zircon, monazite, columbite-tantalite, and radioactive blacks.

Jan 1, 1956

By Gleason

"From June 16 to 19, more than 1,400 tunneling and underground construction professionals gathered in Chicago, IL for the bienial Rapid Excavation and Tunneling Conference (RETC). There, they were greeted by a full technical program and an exciting exhibit hall that provided a comprehensive look at the world’s bustling tunneling and underground construction industry.The successful conference was a reflection of the industry itself, which is to say, busy. As much of the world has begun to focus on creating a cleaner and greener environment, the global tunneling industry has seen an uptick in infrastructure projects move from design-build to construction phase. With a global shift away from the use of fossil fuels, major cities around the world are looking to increase public transportation options, which leads to the need for more transportation tunnels. And as urban populations continue to grow, the need for clean water calls for more tunnels, and as urban footprints continue to expand, the need to increase and update combined sewage overflow tunnel grows with them.During two and a half days, more than 20 sessions covering all of these topics were presented at the Hyatt Regency in Chicago, many to packed rooms in which every seat was taken and people were standing along the side and back walls.RETC is a biennial conference and one of the largest in the North America for the tunneling and underground construction industries. As such, it hosts a robust exhibit floor. This year 172 vendors occupied 205 booth spaces. The exhibit included everything from tunnel boring machine manufacturers, like Robbins and Herrenknecht, to the companies that supply all kinds of parts and services to the industry."

Sep 1, 2019

By Donald W. Gentry

Introduction The mining industry is perhaps best characterized by the numerous and abnormally high risks associated with the business of mining and by its most basic assets - ore deposits, people and technology. At the most fundamental level, it is the quality and effective utilization of these basic assets that determine a mining company&apos;s ability to compete efficiently in the international market place. The gold industry has received much attention in recent years and especially in recent months, for good reason. This commodity serves as an excellent platform for the subsequent discussion of these three basic assets and their role in mining&apos;s future. Facets of the gold industry The fate of this noble metal in recent times illustrates some of the various risks associated with the mining industry and the importance of high-quality assets, whether they be ore deposits, people or technologies. The following comments pertaining to the gold industry help place proper focus on subsequent discussions. All monetary amounts given are in US dollars. Throughout 1997, falling gold prices broke record after record: first hitting three-year lows, then a 12-year low in July and finally an 18-year low at year&apos;s end. From Jan. 1 through Dec. 31, 1997, the price of gold fell by more than $2.57/g ($80/oz), or some 22%. The decline in gold-mining profitability and stock prices was even more dramatic. At the beginning of 1997, the 20 largest gold producers in North America had a market capitalization of approximately $44.5 billion. At year&apos;s end, this market cap had fallen to $26.2 billion, a reduction of 41%. The total market cap of all the world&apos;s gold companies fell from $71 billion to $46 billion, a 35% drop (Serwer, 1998). Analyses suggest that, at a spot gold price of $9.65/g ($300/oz), only one, or possibly two, North American gold-producing companies can make money when break-even or "total costs of production" are considered. While strong hedge positions mitigate this situation in the short term, clearly, this is an industry in desperate straits. For example, write-downs for North American producers in 1997 were approximately $2.5 billion. Speculative short positions in 1997 were near historical record highs and generally exceeded long positions by factors of 9:1 or 10:1. Much of this is driven by some US commercial banks, hedge fund managers and commodity speculators who can significantly move gold prices sharply over short periods of time by selling gold they do not own in the expectation they can buy it back at a lower price before they have to deliver. These signifcant short positions are likely to continue as long as central banks are willing to sell or loan gold to financial institutions that in turn make the gold available to speculators who hope to capitalize on price fluctuations. The Far East accounts for approximately 26% of the annual demand for gold. Including India, the region accounts for 43% of total demand. More than 85% of the physical demand for gold is for investment jewelry in Asia and the Middle East. This demand is extraordinarily price sensitive. The fairly recent turmoil in Asian markets and economies, combined with currency devaluations throughout the region, have made gold more expensive (30% to 50% in local currencies) for those peoples most likely to treat gold as a safe investment haven. Higher interest rates also have reduced the amount of money they have to spend on consumer goods such as jewelry. All of these recent Asian events are deflationary in nature. Deflation, if coincident with rising unemployment, could result in significant dishoarding of gold. There is one key fact to remember when analyzing

Jan 1, 1999

By G J. A Dewar

The Australian Corporations Law generally requires Independent Expert Reports to be presented in support of capital raising or in defence of mergers and takeovers. The introduction of the VALMIN Code in 1995 (and its recent revision issued as the VALMIN Code, 1998) made Assessment and Valuation Reports in these circumstances much more comprehensible than before because of its key requirements for transparency and materiality. By forcing the Independent Valuer to provide an explanation of the reasoning behind the estimation of a particular resource asset, VALMIN allows the reader to clearly see any error or illogicality in the valuation methodology used and to seriously question or even reject the resulting value. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Independent resource asset Valuers are the essential link between mineral explorers/miners on the one hand and brokers/analysts/fund managers/investors on the other. The minerals and financial industries both expect them to not use inappropriate or invalid valuation methods and illogical steps within these methods. This paper examines some of the less sensible ways in which some of the main techniques that Valuers commonly use to assess the fair market value of mineral properties have been applied in recent instances. The authors hope to discourage the adoption or perpetration of the æWhat-number-did-you-have-in-mind?&apos; approach. It is MINVALÆs view that as many methods as possible should be used in any resource asset valuation. If any of the resulting estimates are in approximate agreement (particularly if they were derived using the less subjective of the available methods), ie if they cluster, they are probably more persuasive as being the Preferred Value of the asset than outlier values within the Valuation Range.

Jan 1, 1999