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This paper addresses the valuation and development timing of an undeveloped mineral project. Traditional analysis has us developing the project immediately if its net present value (NPV) is positive. Option pricing theory finds that it is better to wait until the NPV of the property is significantly greater than zero before developing. Alternatively, when evaluating the development timing decision, we must calculate NPV using a higher "timing-adjusted" discount rate, and develop the property only if its NPV using this timing-adjusted discount rate is greater than zero. This paper uses option pricing ideas to convert this development timing advice into a more concrete and user-friendly decision rule: develop the project when its "development-timing NPV" is positive, this development-timing NPV being calculated using the normal discount rate.

Jan 1, 1997

By Sigmund D. Schwarz

INTRODUCTION In late 1970, an experimental geophysical program was undertaken at the Lake Huron Tunnel for the purpose of developing a geophysical technique that could be applied to determining the thickness of rock above the crown of the tunnel and identifying anomalous geologic conditions ahead of the face as the tunnel was advanced. The Lake Huron Tunnel is an 18.5 foot diameter machine bored tunnel having a total length of approximately 6 miles. The easternmost 4.5 mile section of the tunnel extends offshore beneath Lake Huron. At the time this study was started, approximately 1.5 miles of bore remained to be completed at the east end of the project. The tunnel is part of a raw water intake for the City of Detroit water supply. The Lake Huron Tunnel is bored in Antrim shale, a dense marine shale of Mississippian or Devonian age. The west end of the project encountered banded brown shale containing numerous calcareous concretions ranging in size from a few inches to more than 16 feet in diameter. As the tunnel was advanced in an easterly direction, a transition was encountered into very uniform gray shale. One set of prominent vertical joints was encountered with a strike running approximately 15 to 20 degrees askew of the tunnel axis. Bedding is essentially flat. Variable quantities of salt water and natural gas occur in the rock. The results of exploratory drilling carried out for preliminary design studies indicated that as little as 30 to 35 feet of rock cover could be expected under the lake at the east end of the project.

Jan 1, 1997

By N. Kanari

One of the criteria to define the market value of chromite concentrate is its chromium to iron ratio. Changing this ratio for a definite chromite mineral is impossible by physical processing. This study investigated the possibility of increasing this ratio through the carbochlorination and the oxychlorination of chromite concentrates. Experiments are carried out up to 1000 °C. The characteristics of samples and reaction products are determined by SEM, XRD and chemical analysis. The carbochlorination of a chromite concentrate at about 600 °C leads to the . selective partial elimination of iron allowing a higher Cr/Fe ratio of the treated concentrate. Selective extraction of iron could also be achieved at about 950 °C by oxychlorination. In this case, a part of chromium contained in the concentrate is recovered as chromium oxychloride. The obtained residue had high content of Cr, Mg and A1 oxides. Such material has probably better chemical and thermal properties that may. be useful for foundary and refractory applications. Two flow-sheets for the beneficiation of the chromite concentrates using carho- and oxychlorination are suggested.

Jan 1, 1997

By Timothy P. Smirnoff, Anthony Stirbys, Amanda Elioff

The construction of the continuing expansion of the Los Angeles Metro System has required the construction of eight new station structures. One contractor proposed, as a construction alternative for the support of excavation of the Hollywood/Vine Station, the use of soil-mix walls instead of the conventional soldier piles and wood lagging. Soldier piles and shotcrete or wood lagging support systems had been generally used on the other sub-way station excavations constructed to date throughout the system. Immediately east of that station and in almost exactly the same geology, the Hollywood/Western Station was being excavated at the same time using a conventional support system. This paper com-pares the performance of these two support systems in the alluvial soils of the Los Angeles Basin.

Jan 1, 1997

By Daniel Hodouin, Claude Bazin

"This paper examines the economic advantages of adapting the production grade and recovery targets of a flotation circuit as a function of metal prices. The study is periormed using a steady state simulator for a Cu-Zn differential flotation circuit operating under the following strategies of 1) Maintaining constant operating targets, 2) Maximizing individual circuit Net Smelter Return and 3) Maximizing the global Cu-Zn circuit efficiency. Results are compared to assess whether or not one of the strategies produces benefits significantly higher than the others. A discussion of the tools required to achieve such a kind of control completes the paper.Paper not Available at Time of Publication"

Jan 1, 1997

The Mt Sinivit gold project is located approximately 50km SSW of Rabaul in the Baining Mountains of the Gazelle Peninsula, East New Britain Province. The deposits were discovered in mid- 1983 and form part of a larger 26km long zone of variably aurif- erous quartz veining. There are no surface indications or previ- ous records of any prospecting activity or production from the region. The Mt Sinivit deposits consist of a series of oxide and sulphide reserves and resources contained in the Wild Dog (South- ern, Central and Northern oxide zones; Northern sulphide zone) and Kavursuki veins. The proposed exploitation of the oxide reserves by a series of small-medium sized open pits has been fostered by the PNG Department of Mining & Petroleum (DMP) as part of a government policy to encourage the development of a small-medium sized mining industry in the country. The aim of this paper is to document the steps and procedures involved in obtaining the grant of a Mining Lease emphasising the time and the expenditures required during each step of the approvals process for the Mt Sinivit project.

Jan 1, 1997

By J. S. Moretzsohn, D. F. Graham

"Airborne Synthetic Aperture Radar (SAR)was acquired over the Carajás Mineral Province, within the rainforests of the Amazon, which hosts the world’s largest Fe-ore deposit(Santos, 1986). Significant chemical weathering exists in this humid environment. PrevalentAu mineralization is thought to be generally associated with deformation zones in Archean schists.Radar data have proven to be very useful as an aid to geological mapping in the tropical rainforests of the Amazon Basin in Brazil. In these densely vegetated areas, a sense of regional structural trends is obtained as a con-sequence of the sensor/terrain geometry. The top forest canopy is the main terrain reflector of X-band radar energy, and consequently is the main terrain surface feature expressed in processed radar imagery. Radar is important for extending t,he continuity of mapped structural lineaments. Differential weathering is related to variations in radar image texture which is used to infer gross lithologic variations and relative age relationships of major rock units. Specifically, quartzites and banded iron formation are highlighted in the radar imagery due to their unique tonal and textural appearance, in contrast to schists, gneisses and metavolcanic rocks. As tropical areas are typically enveloped in cloud or mist, radar data are invaluable in providing information for logistical planning of field mapping activities."

Jan 1, 1997

By A. D. Akerman, D. D. Young, G. R. Baiden

The development and maintenance of underground roadways are increasingly important aspects of the modern mining process. With the trend toward automation and track-less mining, roadbeds capable of with standing increased wheel loading have proven necessary to maintain high vehicle speed and reduced maintenance costs. Concrete has been used successfully on some roadways in order to obtain the required characteristics. However, this solution usually involves unacceptable expense. The objective of the Road Router project was to create a drift floor profiling machine capable of cutting a smooth surface out of the existing rock floor of development drifts and ramps. This surface would provide a durable, high strength, low rolling resistance roadbed that would allow for reduced operating cycle times and lower maintenance costs of scoops and haulage trucks. The Road Router has the potential to offer an alternative to concrete with substantial cost savings.

Jan 1, 1997

By J. M. Gambogi

Demand for titanium minerals and pigments was nearly unchanged in 1996 compared with 1995. However, through mine expansions and process optimization by the TiO, pigment industry, the available supply of titanium minerals and pigments increased moderately. At the end of 1996, exploration, development and expansion programs were ongoing in the mining sector. But expansion projects in the pigment sector were delayed pending increased demand.

Jan 1, 1997

By Liu Y, Campbell K. R

The paper shows how breakage parameters may he extracted from laboratory batch grinding results and how they may used with reference full-scale hall mill circuit data to estimate the likely size distributions of values and gangue in a full-sca

Jan 1, 1997

By J. A. Finch, J. Vergouw

"Flotation selectivity becomes progressively more difficult to achieve with decreasing particle size. One of the possible problems is agglomeration, i.e. particles clustering together. One mechanism derives from the surface charge all particles develop in water. Agglomeration driven by surface charge is known as coagulation. One form is coagulation between particles of two different minerals of opposite charge. Another is coagulation between particles of the same mineral when conditions are such that the charge approaches zero.The paper describes the method of measuring charge and a new automated settling technique for measuring agglomeration. The phenomena are illustrated with galena and pyrite. Methods of assessing the importance of agglomeration in the plant environment are still to be developed.IntroductionFine particles can agglomerate (i.e. adhere to each other) under certain conditions. This is counter-productive for any physical separation process, including flotation. One cause of agglomeration derives from the surface charge that all particles develop in water. Agglomeration due to surface charge effects is referred to as coagulation. There are two forms of coagulation. If the surface charge is brought to near zero then the force of repulsion is lost and particles coagulate. This usually applies to particles of one mineral type and the technical tenn is homocoagulation. On the other hand, if two particles have opposite charge there is an attractive force. Since the particles in this case are usually different minerals this is known as heterocoagulation.Both types of coagulation can cause minerals to be misplaced. In the case of heterocoagulation this is fairly obvious. One example that may be familiar is slime coating (fines of one mineral coating larger particles of another) But even homocoagulation can be a problem an agglomerate of the same mineral particles can entrap particles of another mineral."

Jan 1, 1997

By M. A. van Nierop

Load behaviour in an industrial mill has been measured directly by inserting probes through liner bolts. The data from conductivity probes have indicated the presence of premature centrifuging during manipulation of the load mass. Overloading conditions were also encountered. Overloading and premature centrifuging both reduce the power drawn by the mill. These effects have been successfully modelled.

Jan 1, 1997

By Yuanwci Shi

This paper discusses the results of research on the interaction between roof strata and shield supports including the active and passive supporting functions of the shield supports which prevents roof strata separation; pressure distribution on the canopy and under the base plate as measured in the laboratory and underground; comparison between various shield structures regarding their effectiveness on roof and floor control; and determination of optimum support capacity under given geological and mining conditions including hard-tocave roof

Jan 1, 1997

By Joseph J. Diehl, Brian B. Khalighi

This paper discusses the Queens Water Tunnel, No. 3, Stage 2, being driven by a new Robbins High Performance (HP) Tunnel Boring Machine (TBM).The paper is divided into four sections. In the INTRODUCTION section, a short overview of the scope of the project is presented. In the GEOLOGY section, the geological condition along the tunnel drive is briefly introduced. The TBM DESIGN section discusses the various design criteria and the resulting machine specifications. The paper concludes, in the TBM OPERATION section, with a case history describing the tunneling operation from start-up to the time of the writing of this paper.

Jan 1, 1997

By M. J. Scoble

There is no straightforward and systematic method for adequately measuring blast damage in on-going mining operations. This paper considers various techniques available for the measurement of blast damage, making particular reference to recent underground hardrock mine studies. This paper concludes by indicating the importance of understanding and accounting for geology and emphasizes the need for a robust damage-audit procedure.

Jan 1, 1997

By Turgut Yalcin

"High-grade concentrates are achieved in flotation columns primarily due to the use of thick froth layers and wash water, both of which facilitate the drainage of hydrophilic minerals from the froth. However, conventional columns employ tall, non-agitated recovery sections for bubble-particle attachment that require high headroom and special gas spargers as well as imposing particle size limitations. These disadvantages can be all alleviated by carrying out the recovery part of the process in a mechanical or pneumatic cell which generate froth more conveniently and efficiently.This paper describes the combining of mechanical and column flotation in a single unit and discusses the influence of various parameters on the performance of the system.INTRODUCTIONIn a flotation process, some of the minerals lifted up to the froth phase may drain back to the pulp due to various reasons such as weak attachment of particles to air bubbles, bursting of air bubbles, agitation of froth, etc. Weakly floating and entrained hydrophilic minerals drain at a faster rate than the strongly floating minerals, and effective exploitation of such differential drainage can lead to cleaner concentrates.For a given mineral, if the rate of flotation from pulp to froth is k1 (min·1) and the rate of drainage from froth to pulp is k2 (min""1), then the net (overall) flotation rate of the mineral, k (min-1 ), will be [Lynch et al., 1981 ]:"

Jan 1, 1997

By Orlando C. Gaspar

The presence of ?ne-grained mineral intergrowths, the complex distribution of deleterious minor elements, and the variable base-metal contents in some assemblages commonly pose technical problems for the processing of volcanogenic massive sul?de ores. The bene?ciation of most massive sul?de ores from the Iberian Pyrite Belt requires extremely ?ne grinding to liberation sizes of K80= 15 µm to 25 µm. For several deposits, mapping of the ore types and metal zoning pat-terns has shown that the different ore types are distributed as ore lenses within the massive sul?des. Mineralogical, textural, and metallogenetic studies have provided an understanding of the distribution of both the vertical and the horizontal metal zonation in the orebodies. Because the ef?ciency of ore processing is affected by ore textures, and because the same mineral commonly has different textures and varies in chemical composition, a relationship between textures of the feed and the middlings must be established for all ore types de?ned at the deposit scale. Quantitative mineralogical methods have been developed to provide, on a timely basis, the information needed to optimize the concentration processes for the massive sul?de ores at the Aljustrel and Neves-Corvo deposits, Iberian Pyrite Belt, Portugal.

Jan 1, 1997

The selection of an appropriate mining method should take into account the geometry of the deposit and its physical properties. Other factors which assist in the determination are the requirements for flexibility in the mining process, minimisation of risk factors and maximising the financial return. Several established mining methods exist which can encompass the requirements to deliver the optimum mining method, this can be in both an underground or open cut environment. The objective is to outline these methods and where they can be applied in a mining project.

Jan 1, 1997

Assess the technical feasibility of mining small and/or deeply buried frozen placer deposits from the surface through boreholes.

Jan 1, 1997

By Rudolf Keller

In the electrolysis of neodymium oxide from a molten fluoride electrolyte, anode effects may occur at the carbon anodes, interfering with smooth cell operation. In laboratory experiments, we attempted to circumvent this problem by selecting electrolytes with a high oxide concentration, possibly at relatively low rare earth content, but cathodic deposition was not satisfactory. A regime at higher cell voltage was discovered to yield good cell performance, but evolution of considerable amounts of fluorocarbon compounds suggested that a reactive treatment of the off-gases would be necessary for environmental acceptability. Subsequent experimentation at low cell voltage revealed conditions for satisfactory operation without occurrence of anode effects and without formation of any CF4 or C2F8.

Jan 1, 1997