Search Documents

By G Harbort, V Lawson

Mount Isa Mines Limited operates one of the worldÆs largest underground mines in North West Queensland. ItÆs mining and smelting complex produces copper anode, crude lead bullion (containing silver), and zinc concentrate. Copper is recovered in the Copper Concentrator from chalcopyrite ore, converter smelter slag and rotary holding furnace (RHF) slag via grinding and flotation operations. During 2002 a project to optimise cleaner circuit capacity was commenced. Its aims were to minimise copper losses and minimise slag/chalcopyrite cross contamination by reconfiguring existing flotation equipment and the addition of new flotation capacity. To minimise cross contamination a Jameson Cell was installed and dedicated to cleaning of slag concentrates, which had formerly been conducted by three flotation columns operating in series. The flotation columns were re-configured to operate in parallel and dedicated to upgrading chalcopyrite concentrate. In addition a Jameson Cell was installed to reject entrained copper from a prefloat concentrate consisting of talc and carbonaceous pyrite. This paper discusses the logic behind the cleaner circuit expansion, recent test work relating to the Jameson Cell and the installation and commissioning phases. Difficulties relating to the commissioning are reviewed and the solutions to problems are highlighted. The benefits the reconfigured circuit has provided to Mount Isa Mines are also discussed.

Jan 1, 2003

By I. Petrovsky

Presence of the ground water, especially flowing water, causes limitations in the type of the explosives, which can be used for the blasting development in the open cats and quarries. This presents really big problem in Russia, because more than 70% of the blasting holes are wet and filled by flowing water. The waterproof explosives need to be used in these conditions, which increases the cost of the blasting development. So the search of the methods to remove the water from the blasting hole and to prevent direct contact of the explosive material with the water is important. It will give possibility to use nonwaterproof explosives (such as ANFO) and decrease the cost of the blasting development.

Jan 1, 2003

By Elzbieta Mielczarski, Jerzy Mielczarski, Jan Drzymala, Yann Duvalm

Polyethylene glycol monoalkyl ethers (CnEm) render quartz hydrophobic while feldspar remains hydrophilic. As a result quartz can be separated from feldspar in small frothless flotation devices such as the Hallimond tube. The separation can be accomplished at room temperature at pH < 7 and C16E33 concentrations between 10-5 and 10-4 M for quartz particles smaller than 0.4 mm. No separation is observed when feldspar ore containing about 60 % of feldspar and 40% of quartz is subjected to flotation in a laboratory flotation machine. The reason for the lack of separation is a low hydrophobicity of quartz in the presence of polyethylene glycol monoalkyl ethers and high intensity of mixing in the flotation machine. The flotometric tests showed that the contact angle of quartz in monoalkyl ethers of polyethylene glycol solutions is less than about 18 degrees and depends on the structure and concentration of the ether and the pH of the system.

Jan 1, 2003

Carbon injection into metallurgical slag is important in electric arc furnace (EAF) steelmaking for foamy slag practices and in nonferrous slag cleaning operations. The current publication presents kinetic data for coal injection into EAF slag to understand the interaction between injected carbon and metallurgical slag. Coal particles were injected into EAF slag and the kinetics were followed by gas and slag analysis. The results were analyzed, in terms of fundamental rate equations for each possible reaction step, as a function of temperature and slag composition.

Jan 1, 2003

By I. R. Firth, D. L. Taylor

Metal mining operations, in particular gold mining operations, use intensive ore control procedures in order to manage the extraction of ore zones from benches containing both ore and waste material. Typical grade control procedures rely on blast hole samples to indicate ore grade. Statistical techniques and geological controls are then used to create two-dimensional polygons, which indicate zones of material designated as ore. These ore-polygons are calculated using pre-blast material locations and are generally not corrected for rock movement caused by blasting. This lack of correction appears to exacerbate the material mischaracterization problem of sending ore to the waste dump and/or waste to the mill. One Nevada gold mining company has estimated that this could be a $10 million per year problem for their operations. Using a simplified vector field algorithm, a method of taking point movement data and interpolating post-blast positions for all nodes in a polygon has been developed. Currently working in 2-dimentions (X-Y), this algorithm utilizes the movement vectors calculated from pre-and post-blast positions of targets placed in a blast, to generate a spatial transformation function for any point on the bench. This transformation is then applied to the nodes of the ore-polygons to produce modified dig lines ore polygons reflecting distortion and movement resulting from the blast. The method as implemented uses common mine planning routines and is performed using the Surpac software suite. The method may be adapted to use any pre-and post-blast point movement data available, and most mine planning suites include the simple interpolation algorithms used. Keywords: Blast movement; Ore control; Open pit blasting; Grade control

Jan 1, 2003

By Tapan Goswami

The expectation from the blasting engineers and shotfirers is often that explosives will perform optimally at all times. However, in reality, non-ideal situations exist on mine sites and occurrences of poor explosives performance are common. Often the cause is difficult to identify. Having a good application technique and analysis skills will minimise the risk of poor performance. This paper will discuss the experiences gained by the author while blasting in the Hunter Valley, Australia.

Jan 1, 2003

By T Jones, K Karunaratna

The Kalgoorlie Consolidated Gold Mines (KCGM) Fimiston Open Pit is located on the eastern boundary of the Kalgoorlie-Boulder City and is mining an area traditionally known as the Golden Mile. The pit area has been continuously worked since 1893, predominantly by underground mining methods and more recently through open cut mining. There are over 2000 km of old mine headings and numerous stopes under the open pit area. KCGM has interpreted and digitised the underground mine plans and stope sections into a common database. A 2D-model software package, called Pits, was developed in-house and allows old workings to be displayed at any bench level; this is integrated with 3D Vulcan modelling software, which allows triangulated surfaces to be displayed. Almost every mining activity is affected by underground workings. The effective management of the interaction between current mining and the underground workings is very important for safety and production. A specific ævoidÆ management department has been formed and its broad objective is to minimise the impact of underground workings upon production while maximising safety. Special criteria and procedures have been developed and implemented to keep personnel and machinery from being exposed to unsafe ground. It is of primary importance to accurately define the location and outline of underground workings in advance. Probe drilling has been used as the key tool for that purpose. Various geophysical methods have also been trialled on site to detect underground workings; these are discussed in some detail. This paper discusses ævoidÆ management issues such as data integration, void detection and flagging. The impact of underground workings on mine planing, production and slope stability is also discussed.

Jan 1, 2003

Standards in the public reporting of resources and reserves in Australia have dramatically improved since the implementation of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (The JORC Code) in 1989. Whilst the JORC Code states clearly that Mineral Resources and Ore Reserves are imprecise calculations and should be treated as estimates, there is strong evidence that many people regard them as fact, including some accountants, directors, auditors and investors. Mineral Resources and Ore Reserves are key inputs in the valuation of a mining company and the determination of financial performance. Geological knowledge is the foundation upon which Mineral Resources, Ore Reserves and investment decisions are made, however this information carries with it substantial uncertainty. Case studies and company reports have established that errors derived from inadequate geological inputs have led to reduced profitability in operating mines and in extreme cases the premature closure of mine operations. Whilst there are many causes of mine closure and reduced profitability, including commodity prices and exchange rates, the cumulative effect of all geological uncertainty contributes significantly to the erosion of the credibility of mining within the investment community. There are a number of methods used to characterise and model uncertainty in Mineral Resource and Ore Reserve estimation. Empirical mining indexes, sensitivity analyses, Monte Carlo simulations and Conditional simulations are used to identify and estimate geological uncertainty, notably the quantification of uncertainty in grade and tonnage estimates. These techniques have not generally been applied to estimating geological uncertainty associated with key Ore Reserve inputs such as appropriate mining technique, equipment selection, production rate, mining dilution, stability requirements, materials handling, metallurgical processing, product quality and waste storage. New software tools are needed to model the entire mining process with all its geological and other interdependencies, enabling all uncertainties to be separately identified and estimated. By its very nature, mining involves the assumption of significant technical, financial, political, environmental and social risk. Success comes by understanding and managing these risks and consequently the mining industry will never choose to reduce the level of geological uncertainty to nil. The ultimate aim of improved identification and estimation of geological uncertainty is to quantify inputs into the Ore Reserve process, allowing a company to assess the risks and manage these accordingly. This approach is relevant to feasibility studies for new projects as well as life-of-mine planning through to the weekly schedule at existing mines.

Jan 1, 2003

By F. B. Samani, B. Stabel

The 1,000 MW Hydro Power Station Masjed-e-Soleiman (formerly called Godar-e-Landar) in Iran is under construction since 1992. The rock engineering aspects of the major underground structure, i.e. the powerhouse cavern shall be reported on in detail. The geotechnical investigations are described and results given. The results of several geotechnical analyses are presented. The designed and executed rock support is given. A description of the monitoring systems and typical measurement results obtained during and after excavation are presented. The lessons learnt during construction of the Stage-I powerhouse cavern were applied on the extension of the powerhouse cavern, which is to house an additional 1000 MW. Details regarding the unexpected behaviour of the Mudstones are given. Die 1000 MW Wasserkraftanlage Masjed-e-Soleiman (vormals Godar-e-Landar genannt) befindet sich seit 1992 in Bau. Dieser Artikel berichtet im Detail über die felsbaulichen Aspekte der Untertagebauwerke, insb. der Maschinenkaverne. Die geotechnischen Untersuchungen werden beschrieben und deren Ergebnisse wie die Ergebnisse verschiedener Berechnungen werden präsentiert. Die geplante und die ausgeführte Felssicherung wird angegeben. Die eingebauten Überwachungseinrichtungen werden beschrieben und typische Ergebnisse während des Aushubs und danach werden dargestellt. Die Erfahrungen beim Aushub der Kaverne der Stufe I wurden beim Entwurf der Kaverne der Erweiterungsstufe II, die weitere 1000 MW beherbergen wird, berücksichtigt. Details zum unerwarteten Verhalten des Schluff-/Tonsteins werden angegeben. La centrale hydroélectrique de Masjed-e-Soleiman (dénommée anciennement Godar-e-Landar), d’une puissance de 1.000 MW, est en construction depuis 1992. Un rapport détaillé sera présenté sur les aspects relatifs à la construction en enrochements de l’aménagement souterrain principal, à savoir la caverne abritant la salle des machines. Une description des investigations géotechniques réalisées y est fournie ainsi que les résultats correspondants. En outre sont présentés les résultats de plusieurs analyses géotechniques. L’ancrage dans la roche tel que projeté et réalisé est présenté. Une description des systèmes de contrôle ainsi que les résultats de mesures typiques obtenus au cours des travaux d’excavation sont donnés. Les leçons tirées lors de la construction de la Phase 1 de la caverne de la salle des machines furent appliquées à l’extension de la caverne de la salle des machines, qui doit abriter une unité supplémentaire d’une puissance de 1.000 MW. Par ailleurs, des détails sont donnés sur le comportement inattendu des argilites.

Jan 1, 2003

By M Rankin, F Medina, R Verburg

We conducted a preliminary assessment of an extensive deposit of historic tailings discharged over a period of 40 years to the shoreline along a Southern Peruvian coastline. The tailings formed an extensive beach approximately 2.4 km long and 300 m wide. The tailings consist principally of pyrite (37 to 59 per cent), hematite (nine to 20 per cent), magnetite (three to 13 per cent) and quartz (11 to 36 per cent). The present operating company was required to evaluate the feasibility of capping the ocean side tailings deposit, however, given the size of the undertaking and the potential to reclaim residual minerals from the tailings, it was prudent to first evaluate whether capping would in fact reduce the impacts to the marine environment. Therefore this preliminary assessment examined: 1. metals contamination in tailings, shoreline porewater and marine sediments; 2. reactivity of tailings and acid generation potential; and 3. the potential for biological effects from metal contamination in the uplands tailings (solid phase) and beach porewater. Based on mineralogy, column leach studies and chemical results, the upland tailings have a high geochemical potential to acidify and release metals, especially copper, nickel and zinc, should they be subject to oxygenated and aqueous conditions. But, the extreme arid climate results in very low potential for precipitation and virtually precludes the transport of acid drainage reaction products from the upland tailings towards ocean. Wind erosion caused by offshore winds is likely a small source of tailing transport to the ocean. Since some potential exists to reprocess the tailings in the future, capping does not seem justified at present.

Jan 1, 2003

Sasol Roche Blasting Services (SRBS) has undertaken a process of trialing and evaluating the use of the SMI electronic initiating system with the specific purpose of being able to fully quantify the benefits of the system over a pyrotechnic system. After an initial trial of three shots in mid-2001, it was decided that to fully quantify the system, a complete strip would need to be fired using the system so that any losses due to ramps or end walls would be the same for both scenarios. The results have shown a significant improvement over the use of pyrotechnic initiators in several key areas including percentage cast. Through the use of survey results, the increase in cast and subsequent net improvement in blasting has been quantified. These trials have set out to compare each system in comparable situations to determine the real benefits, if any, of the electronic system over the pyrotechnic one. As the percentage cast is relatively easy to quantify using modern survey techniques, it was decided that this would be the principle method of comparison. However, while the assessment only included survey results, any improvement in fragmentation size and consistency would have flow on effects on reduced running and maintenance costs.

Jan 1, 2003

By Christopher Gammons

In developing countries throughout the world, gold ores are being processed by mercury amal-gamation, a technique long banned in the U.S. - unless a retort operation is used for mercury recovery - due to mercury toxicity and its effects on the environment. Amalgamation is a simple process that involves contacting a ground, slurried concentrate or ore with mercury in a slightly agitated vessel, usually for several hours, The amalgamated mercury is separated by gravity and then filtered through a fine cloth to collect the gold amalgam as a sponge, which is then fired to remove the final remnants of mercury and produce high quality gold. However, in Peru and other developing countries in South America and throughout the world, tailings are simply discarded into uncontrolled drainages and ponds and the sponge is fired in the open air. Clearly, in this case, environmental friendly and, to make matters worse, is typically conducted by family members of all ages without proper protection. Furthermore, the technique is inefficient, yielding approximately 50% gold recovery. For the past two years, faculty members from Montana Tech in Butte, MT, USA and the Universidad Nactonal del Altiplano in Puno, Peru have teamed to study the La Rinconada Mine Complex located in southern Peru approximately 100 kilometers north of Lake Titicaca and 25 kilometers west of Bolivia. The mining complex is over 5,000 meters above sea level and exists at the foot of a receding glacier in the Andes Mountains. A suite of soil and water samples collected in 2001 documented extensive Hg contamination in the Rinconada area [1]. The present paper summa¬rizes a follow-up investigation in July-2002, in which water samples were collected at numerous locations along the 200 km length of the Rio Ramis, from the Rinconada mine com¬plex to Lake Titicaca, In addition, we report new results of Hg analyses of fish from Lake Titi¬caca, The results of this study have relevance to safety and health concerns for the miners as well as people in downstream communities.

Jan 1, 2003

By Ammar Henchiri, Godfrey McDonald

"Breakwater Tunisia S.A.’s Bougrine mine is located in a semi-arid region of Tunisia characterized with Triassic salt domes. Due to extensive agricultural land-use in the mine area, a zero-discharge tailings facility design and high water recycling rates to the concentrator were chosen to minimize the environmental impact to the surrounding area. The process water supply has an accumulation of naturally occurring salts due to high evaporation rates and the need to recycle 70% of the process water. The elevated salt content of the process water had an adverse effect on the efficiency of the flotation reagents, which led to the production of lower quality zinc concentrate.The impact of the water salinity on the zinc concentrate quality was documented by extensive laboratory testing. A feasibility study was prepared and a decision was made to install a reverse osmosis plant for desalination of the process water. A plant was constructed during 2000 which currently supplies up to 85 m3/hr of de-mineralized water, equal to approximately 45% of the total process water requirement. The salinity of the process water decreased from about ten to twelve grams per litre before installation to less than three grams per litre. Together with minor modifications to the concentrator circuit, Breakwater Tunisia has increased the zinc concentrate grade from 50% zinc to 55% zinc without compromising the zinc recovery rate of approximately 84%.This paper discusses the successful installation of a reverse osmosis desalination plant that allowed Breakwater Tunisia to improve the grade of the Bougrine mine zinc concentrate and thus increase the net smelter return.INTRODUCTIONBreakwater Resources Ltd., through a wholly owned subsidiary, Breakwater Tunisia S.A., acquired the Bougrine underground mine and related assets in September 1997. During the winter of 1997/1998, the company rehabilitated the mining equipment, modified the concentrator circuit, developed a new mine ventilation system and prepared a new mining production program. The mine was reopened on May 2, 1998 and was in commercial production as of June 1, 1998."

Jan 1, 2003

By John Manka

Emulsion explosives consist of an aqueous oxidizer phase, a fuel phase, and an emulsifier. The ability to use lower-cost sources for any of these raw materials presents an obvious economic advantage to emulsion manufacturers. This paper focuses on using low cost waste drain oils as the fuel phase in emulsion explosive applications. Laboratory studies showed that emulsions made from waste drain oils and agricultural ammonium nitrate prills were usable for emulsion explosives though their shear stability was weak. Customer field results proved that waste crankcase drain oil could replace half of the virgin diesel fuel in emulsion explosives to make an effective emulsion explosive product with a very low cost.

Jan 1, 2003

By James R. Hein

A new data set of cobalt-rich ferromanganese (Fe-Mn) crust chemistry has been completed for the first detailed sampling of a latitudinal crossing of the Pacific equatorial zone of high biological productivity. Samples were collected in January-March, 1999, during the AVON 2 cruise aboard the R.V. Melville, Scripps Institute of Oceanography. Samples were collected from 4.6° N to 9.2° S latitudes along two ridges, the Marshall Islands-Gilbert Islands ridge (4.6° N to 3.5° S) and the Howland Island-Tokelau Islands ridge (1° N to 9.2° S). The two ridges are offset east-west in the region of overlapping latitudinal sampling by about 466 km. We determined the concentrations of 48 elements for 147 samples from 39 dredge hauls taken on 33 seamounts and island flanks that occur between the Marshall Islands to the northwest and Samoa to the southeast. Element concentrations can be examined as varying spatially and with water depth in the ocean and we examine those relationships based on statistical analysis of the chemical and spatial data. The mean Fe/Mn ratio of 1 and mean Co content of 4645 ppm are typical of West Pacific hydrogenetic crusts; but the mean Co content is low compared to those of some equatorial North Pacific sites, such as the Marshall Islands and Johnston Island EEZs. In contrast, the mean Cu concentration (1540 ppm) is 35% higher than the mean concentration for Pacific Ocean Fe-Mn crusts (998 ppm). Another striking difference is the 40% higher Ba concentrations (mean 3107 ppm) compared to typical Central and West Pacific crusts (mean 1876 ppm); but Ba concentrations are lower than those in California continental-margin Fe-Mn crusts (mean 4085 ppm). A final significant difference in Fe-Mn crust chemistry is Zr concentrations, mean 921 ppm (maximum 1523 ppm), which is about 30% higher in this data set compared to the previously determined mean value of 613 ppm for Central and West Pacific crusts. Zirconium has a strong positive correlation with Ba and a weak positive correlation with Mn.

Jan 1, 2003

By Jeffrey Johnson

To measure the loading behavior of friction bolts, researchers at the Spokane Research Laboratory of the National Institute for Occupational Safety and Health (NIOSH) installed strain gauges on the interior of friction bolts and developed a battery-powered miniature data acquisition system (MIDAS) that fits inside the hollow portion of the friction bolt. The advantages of this system are that it is protected from face blasts and eliminates the need for external wiring. Laboratory pull-out tests showed that friction bolts installed in a concrete block with resin were loaded to about 1.8 tons/ft of bolt length; bolts installed without resin were loaded to 1.3 tons/ft. Three strain-gauged friction bolts were installed at Hecla Mining Company&apos;s Gold Hunter Mine, Mullan, ID, in the wall or rib of a mechanized cut-and-fill stope. The object of these tests was to establish an installation procedure for the bolt-and¬MIDAS combination and to evaluate performance. The stope was advanced in three 15-ft increments and strains induced in the rock bolts by stress changes in the rock were recorded every 30 minutes. The MIDAS proved to be rugged enough to withstand the shock and vibration from nearby (5 ft) face blasting. Data from MIDAS showed that the friction bolt installed with resin was the most sensitive to each face advance. It showed a steady increase in loading to a maximum value of 1000 microstrain. The friction bolt installed without resin showed stick-slip behavior with loads to a maximum of 400 microstrain before the stope was completed.

Jan 1, 2003

By D. S. Richards

Computers have revolutionized the collection of data on modern mines. Never before has it been possible to collect data from all aspects of the mining value chain at rates now common. With this has come a new challenge. Deriving information from these copious amounts of data and disseminating it. This problem is being exacerbated by technical software systems, which use proprietary and binary data formats that severely inhibit the flow of data and information both across departments and the larger organization. Generally this had led to data duplication and data redundancy. The Gemcom Enterprise Mining System (GEMS) makes use of industry standard, secure and open databases for all its data objects. It manages multiple users accessing the same bits and bytes in the database, preventing data duplication and redundancy. Developed in the Microsoft BackOffice ® environment, GEMS is also able to leverage the enormous amount of tools available in this environment, whether it’s for e-mail notification, reporting or data capture. Microsoft’s® Active Server Pages are one of these tools. These are standards used to create dynamic and interactive web pages with links into databases and many other objects. The real example outlined in the text, demonstrates how a user anywhere in the world is able to login to a web page and run a query that returns a report with vector plots of performance for the user-selected time frame. As integration is tightened between the various components of the mining value chain, the importance and reliance on ASP pages will grow as the need for management information tools develops. Keywords: mines, computers, ASP, GEMS, integration, Microsoft, Management Information.

Jan 1, 2003

By H. Rossmanith

This contribution introduces the fundamental concepts of wave propagation and fracture mechanics which form the basis of electronic blasting, i.e. precise initiation timing using electronic detonators. The concept of Lagrange diagrams will be frequently used for the calculation of the delay time between blast-holes in a row and rows of blast-holes. The effect of burden and structural geology will be briefly touched. It is found that the advanced blasting technology based on the use of electronic detonators introduces a change of paradigm. It will be shown that knowledge in wave propagation and fracture mechanics is essential for the successful application of the new blasting technique in industry. In particular, the delay time, the wave speeds in the rock mass, the shape of the wave pulse and the acoustic impedance mismatch have become decisive parameters in advanced blasting. Utilizing the wave speed and wave shapes of detonations, large scale tests Utilizing the wave speed and wave shapes of detonations, large scale tests in various countries (Australia, Chile, etc.) have shown that optimal delay timing requires shorter delay times in conjunction with allowing for a wider drilling pattern and the use of a reduced amount of explosives, i.e. a lower powder factor. This seemingly contradictory arrangement is fully justified by using scientific principles in blasting, and converting blasting from an art to a scientific discipline.

Jan 1, 2003

By M. E. Rossi

All large-scale applications of conditional simulations intend to benefit from the ‘correct’ (or’ accurate’) characterization of uncertainty, adequately describing the variability observed from the data and its impact on the final objective. This paper discusses a number of relevant issues that highlight the extent to which, in reality, a model of uncertainty is dependent on the random function model chosen. Often in the presence of large number of conditioning data most available random function models will provide similar models of uncertainty. When conditioning is scarce, the resulting models of uncertainty will vary more widely, since the final output will depend mostly on the underlying assumptions of the model chosen. The application described in this paper is taken from a large porphyry Cu operation in northern Chile, and it demonstrates the impact of several variables on the resulting models of uncertainty. In particular, some of the decisions involved include the number of conditioning data and the underlying Random Function model used (Gaussian or indicator-based). Also, implementation-specific parameters must be decided upon, such as grid size used, random number generator, simple or ordinary kriging, multiple-grid simulation, and simulation of irregular three-dimensional bodies (as opposed to regular grids). Some practical guidelines are proposed to deal with these decisions.

Jan 1, 2003

By Christopher R. Lattanzi

"Discounted cash flow analysis provides a means of relating the magnitude of expected future cash profits to the magnitude of the initial cash investment required to purchase an asset or to develop it for commercial production. The objectives of discounted cash flow analysis are to determine:.. The net present value of a stream of expected future cash revenues and expenditures... The rate of return which the expected future cash flows will yield on a given level of initial cash investment.In the case of mineral properties, discounted cash flow analysis is generally accepted as the preferred method of valuation, whenever sufficient data are available to permit its reasoned application. Sufficient data are required to support estimation of all of the individual elements of cash revenue and cash expenditure which will be associated with the development and operation of the property, up to the end of its estimated life. It is the accuracy of these input estimates which determines the validity of the resulting determinations of profitability and rate of return on invested capital.In undertaking any discounted cash flow analysis, it is important to recognize certain fundamental attributes of the mining industty:.. The basis of any mineral development is the existence of an ore reserve... Costs are determined by the number of tonnes mined and processed, while revenues are determined by the number of pounds or ounces of metal produced. The two are related by the recovered grade of the ore... Profit is typically more sensitive to changes in revenue than it is to changes in cost... Commodity price is a principal determinant of revenue, but it is also the factor with which is associated the greatest level of financial risk.In the end, of all of the factors which must be considered in the discounted cash flow valuation of a mineral property, the most significant are the reliability of the reserve estimate, particularly with respect to recovered grade, the price at which the product is to be sold, and the risk of not maintaining the projected level of price."

Jan 1, 2003