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We are moving into an era where we experience the consequences of the skills crisis û namely many resource models have been generated by inexperienced people under pressure to deliver high quality resource estimates in unsupported environments, often without technical mentors. These resource models form the basis of our decision to pursue actual mining. This begs the question: how valid are the resource models that form the basis of our mining decisions? This paper presents various model validation tools such as comparison of input and output statistics, swath plots, sectional or bench comparisons between drill holes and models as well as a variety of other approaches. Each model validation tool currently used in industry is examined:how the tool generates results,what assumptions exist,what constitutes a pass/fail in the test, and what interpretations to consider when using the validation tool. Each validation toolÆs suitability and the inherent flaws in the underlying assumptions are also discussed. These are supported with examples of good versus bad validations. Our principles based reporting codes provide flexibility in how models are generated and what approaches and/or parameters are used to generate resource estimates. This flexibility works well when used by experienced practitioners. However, our reporting codes assume a level of experience not always available in the current skills crisis. This paper seeks to provide minimum model validation prerequisites for model acceptance and suitability, regardless of the resource analystÆs experience. As we move forward, our immediate challenge is to ensure our baseline resource models are material, transparent and competent.

Jan 1, 2009

By J. Jordan, D. K. Denton, D. Tesarik, D. F. Scott, T. J. Williams

Personnel from the Spokane Research Laboratory of the National Institute for Occupational Safety and Health integrated the results of studies from a seismic tomographic survey, a finite-difference analysis, laboratory measurements of compression wave (ultrasonic) velocities in rock cores, and site geology to evaluate the use of seismic tomography for identifying induced pressures in an underground pillar at the Edgar Mine, Idaho Springs, CO. The key findings were that (1) the seismic tomograms showed that seismic velocities in rock adjacent to mine openings were low, (2) a difference tomogram in which in situ stresses on the east and west sides of the slot were compared showed that velocities increased west of the slot but decreased east of the slot, (3) geologic features (rock types and a fault) identified through geologic mapping were recognizable in the seismic tomograms, (4) ultrasonic velocity measurements on the rock cores agreed with seismic velocity measurements in the tomograms, and (5) results from a finite-difference analysis compared well to the seismic tomograms west of the slot but not east of the slot. The significance of this research is that seismic tomography is a useful tool for determining relative stress in underground pillars.

Jan 1, 2004

Validation of the JKMRC Rotary Breakage Tester (JKRBT) Ore Breakage Characterisation Device

Sep 13, 2010

Entry of personnel under a vertical raise bored hole is not standard practice in Australia. Where access is required below a rise, mining operations must be confident that they understand the capacity of the ground control specified and installed. Physical modelling was conducted on Callie mine to evaluate the performance of 5 mm steel wire weldmesh secured to the base of a vertical raise bored hole of 1.4 m diameter. Joint orientation data was used with Unwedge to calculate a series of potential wedges likely to form within the rise. The mass of the most likely wedges were then replicated by collecting rocks in 5 kg increments (¦10 per cent), which were allowed to freefall onto installed mesh at the base of a 40 m vertical rise. The results indicate that two sheets of mesh can retain a freefalling rock of at least 20 kg mass although rupture of strands can result. This paper outlines the test conditions, expected results based on theoretical calculations and actual outcomes of the testing.

Nov 25, 2010

By Ruilin Yang

Based on large amounts of field data, this paper evaluates the validity of the above equations. During the evaluation, the different selections of the frequency in the equations were examined with field data. It is found that when they are used to estimate the vector sum values the above equations could result in large deviations from the values obtained directly from the field measurements or the waveform integration. The simple equations may be used to make rough estimations for single components of blast vibration provided that appropriate safety factors are taken into account. For single component vibration, the principal frequency (from ‘zero-crossing’) seems more effective to describe the blast vibration than the dominant frequency (fron FFT) for vibration peak value estimation using the simple equations.

Jan 1, 2012

By J. -P. Chilès

The discrete Gaussian model is a very popular change-of-support model for estimating block grade distributions. It is designed for a stationary random function Z(x) that is regarded as the transform of a stationary random function Y(x) with Gaussian marginal. It is based on an assumption that is not fully true and thus constitutes an approximation to the exact solution. We examine the effect of this approximation on the modelling of the marginal distribution of block values of a lognormal random function. The initial discrete Gaussian model and a variant of that model are considered.

Jan 1, 2014

By Prosper Lamothe

El presente texto describe los distintos métodos y criterios empleados en la valoración de yacimientos o activos mineros de Chile, asimismo se realiza un análisis comparativo de los distintos métodos para explicar las distintas distorsiones, errores, riesgo e imprecisiones de cada uno de ellos. En este sentido, las empresas son concientes de los riesgos y el impacto que tienen en el valor comercial, los modelos de estimación de recurso y las reservasmineras. mineras. Por ello, las opciones reales son actualmente la técnica que permite valorar y controlar en cierto modo la cobertura de riesgo del negocio.

Sep 12, 2005

By Prosper Lamothe

El presente texto describe la metodología ad-hoc para evaluar proyectos de Inversión estratégicos a través de la flexibilidad y la teoría de opciones reales. La clave de dicho enfoque metodológico radica en realizar la mejor proyección del precio de los metales aplicando las mejores prácticas mundiales al respecto. Para ello, se analizan una gran variedad de modelos concluyendo que el mejor modelo a aplicar, debe ser la simulación del precio del metal con reversión a la media con saltos de tipo aleatorio.

Sep 9, 2007

By Luciano R. G. Santos

Keywords: biosorption, cadmium, copper, biomass, spent zeolite. The majority of the industrial activities produce some kind of solid wastes. In this work two industrial residues (spent zeolite and wood sawdust) were chemically modified to increase their heavy metals sorption capacities. Manilkara longifolia (a Brazilian plant known as parajú) sawdust was first treated with NaOH and modified with different citric acid concentrations (0.6-1.2 mol/L) at 120°C, for 90 min. Infrared spectroscopy confirmed the presence of carboxylate groups in the wood structure as result of their mixing. Similarly, spent zeolites were also submitted to a chemical treatment (NaOH) to remove carbon deposited during oil cracking and to recover its sorption capacity. Batch experiments carried out at ambient temperature showed that both materials present sorption capacity for copper and cadmium comparable to weak acid ion exchange resins. A maximum of 78 mg-Cd/g and 59.7 mg-Cu/g as well as 29.9 mg-Cd/g and 14.6 mg-Cu/g were observed for the sawdust and the zeolite, respectively. The results were modeled according to the Freundlich and Langmuir equilibrium isotherms and compared with results of other studies.

Jan 1, 2005

Valuable Components Recovery from Lead-Zinc Metallurgical Slag

Sep 13, 2010

By Joseph Hamuyuni, Fiseha Tesfaye, Daniel Lindberg

E-waste management through traditional methods such as disposing in landfills, burning in incinerators or exporting abroad for disposal are no longer options due to the strict environmental regulations. Fortunately, the presence of valuable metals in the e-waste and increasing demand for the metals as well as complexities of the currently available primary raw materials make recycling an attractive and viable option both environmentally and economically. Moreover, it is efficient in terms of resource management by closing the loop of metals. Consequently, urban mining such as the recovery of precious metals from e-waste streams through sustainable recycling processes have emerged. The sustainable recycling practices address the scarcity of primary resources and reduce consumption of energy for metals production while managing environmental issues related to hazardous materials from the e-waste streams. In this paper, valuable metals recoveries from e-waste streams through pyrometallurgical and hydrometallurgical processes are critically reviewed. And, innovative ideas for different steps of the thermochemical processes in the valuable metals and energy recovery from the e-waste streams are discussed.

Mar 1, 2017

By R. Lawrence

Mineral property valuations to be used for Canadian securities regulatory purposes must comply with CIMVal1. The technical basis for a CIMVal report is the same as that required for a technical report that complies with NI 43-1012. NI 43-101 describes the content to be covered in a technical report, while also covering other requirements, one of which is that the report should be based on a property visit. CIMVal is based on five tenets that the valuator must follow: ? Materiality. ? Independence. ? Transparency. ? Competence. ? Reasonableness. Upon its adoption by CIM Council in 2003, it was hoped that the new CIMVal code would be adopted without change by the several Canadian regulators.

Jan 1, 2011

How the Australasian and Canadian Codes (VALMIN and CIMVal) approach mineral property valuation is described. Brief comment is also made on the International Valuation Standards CommitteeÆs interest in a global valuation standard for Mineral (Extractive) Industries and the South African SAMREC initiatives to adopt a VALMIN-like Code. The conventional tripartite classification of valuation approaches into those that are Market-based, Income-based and Cost-based is outlined. It is best practice to use as many of these approaches as possible (and as many methods as reasonable in the particular circumstances), given the quantity and quality of the data available on the Mineral Asset (which depends upon the state of development of the mineral property). The use of specific methods must satisfy the basic considerations of logic and reasonableness and the purpose of the valuation. The competence, judgement and repute of the valuer are critical factors, since all valuations are time and circumstance specific. What constitutes æMarket ValueÆ in the different jurisdictions is discussed and definitions are given. Challenges facing the globalisation of a VALMIN-type Code for the international Minerals Industry are the influence of real estate valuers and the US jurisdictional idiosyncrasies. This is mainly due to a fixation on real property rights with a preference for using real estate-like comparative sales techniques (Market Approach) to the exclusion of Income-based approaches; a regulatory reluctance in the US to accept that Resources have considerable value; and the International Accounting Standards BoardÆs preference for Historical, rather than Current Value, accounting.

Jan 1, 2002

This paper examines the issues involved in the technical audit and valuation of exploration prospects. Certain methodologies are more appropriate to use depending upon whether the mineral property valuation is of an exploration area, a project under development, or an operating mine. Valuation approaches that are reviewed include the Multiple of Exploration Expenditure, Joint Venture Terms, Rules of Thumb, and particularly the Kilburn Rating Method. The DCF/NPV Financial Simulation Method, even modified by the use of Expected Values, is not considered appropriate for valuing exploration prospects. The choice of the most appropriate methodology and its successful application depends primarily upon the amount of reliable input data available and, more importantly, the experience and judgement of the valuer. It must be remembered that all valuations are time and circumstance specific and will be generally subject to revision as more data becomes available.

Jan 1, 1993

By R. D. Lawrence

"Comparable transaction analysis is the best known of the market approaches to valuation of exploration-stage mineral properties. The analysis of option and farm-in agreements can also provide useful guidance to valuators. While such approaches can be distorted by incomplete analysis, market-based methods are capable of providing consistent, credible results when carried out carefully with due consideration paid to all factors which buyers and sellers consider when dealing in the real market. IntroductionMineral properties without defined resources present one of the most challenging tasks to the mineral valuator. This paper will concentrate on market-based approaches to valuation of such properties. Other authors at MM2000 presented papers on cost and income approaches. Sorentino (2000) also provides a useful overview with some provacative commentary on methods.Market based-approaches are based on the principle of substitution and include such techniques as: comparable transaction analysis (sometimes referred to as sales comparison analysis); farm-in commitment (or option agreement) analysis; rules-of-thumb; and comparable market value analysis.Are there any valuation standards available to assist the valuator? In Canada there are none that apply to the valuation of mineral assets or securities. This problem is being addressed, at least in part, by the CIMVal Committee of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)1. Further, the recently established Canadian Association of Mineral Valuators will be giving consideration to the adoption of valuation standards."

Jan 1, 2002

By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definite life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital write-offs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral property possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulfur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. Present Value of a Mineral Property In essence the present value of a mineral property is a sum of money in today's dollars that future income from the property are worth. It differs from the total anticipated earnings by the amount of the interest that the unrecouped investment could be expected to earn during the period of recoupment. Thus, if one could accurately estimate what a mineral property will earn during its life, after deducting all operating, administrative, capital, interest, and tax charges, the determination of present value would be a relatively simple mathematical calculation. Normally, where the expected life of the mineral property extends beyond 20 or 25 years, the discounted value of earnings beyond this period is relatively small. The petroleum industry generally discounts the annual cash flow of an operation rather than earnings since, for tax-saving purposes, earnings are kept

Jan 1, 1976

By M. H. Moys, J. A. Finch, A. R. Laplante

"A detailed review of ball milling circuit control practices in industry has been carried out. Based on fundamental process performance objectives, a standard system for base-level control of most ball mill installations is presented. This system is simple, inexpensive, and provides the major economic benefits available from contemporary automatic control technology.Value Analysis of Grinding OperationsValue analysis (or engineering, or management), originally developed by Lawrence D. Miles of the General Electric Company (1), focuses on the identification of value (product or process worth versus cost) and provides a systematic procedure for its improvement. A recent research and development project involving the application of the principles of value engineering to grinding operations has provided a basic technoeconomic model of grinding processes (2). The functional objectives of the ball milling process and the means to achieve value based grinding circuit control originate from this study.The Need for Grinding Circuit ControlThe economic effectiveness of a process is determined by the quality or value of the product and the related processing costs. If the inputs (both the raw feed and the applied processing work) are absolutely constant, the product characteristics and the process efficiency will be determined only by the engineering design. The need for and degree of process control is therefore determined by the nature of variations or upsets in the process inputs, and the extent to which these effect product value and operating costs."

Jan 1, 1988

By C. Lumley

The management of the Anglo Platinum (AP) mining technical systems (MTS) embarked upon a process of defining the strategy for the MTS department. The newly established department forms part of the greater Group Information Technology (IT). The strategic process took place within an environment that had witnessed a dramatic proliferation of IT implementations across the group within the last three years. The IT department has been structured in terms of the classical plan, build and run functions with the applications and integration streams running perpendicular across these three functions. The application stream is divided into commercial and mining technical systems with business systems integration the third stream. The mining technical systems department supports mine management to effectively gather, analyse and disseminate data relating to the ore reserve by integrating a number of strategically selected IT applications to ensure that the safety, legal and operational requirements are met. This service to business is rendered by management of a strategic outsource partner via tightly controlled service level agreements (SLAs). The framework used for creating a mining technical systems department that is empowered to add value to business was formulated using the AP value chain as both the starting point and guiding process to ensure alignment to the greater internal strategy of the business. Keywords: Platinum, Mine planning, Mining technical systems, Value chain.

Jan 1, 2003

By Juan Camus

To understand why some companies excel in creating value, Jim Collins (2001) and a group of postgraduate business students engaged in a comprehensive, five-year research project. They examined 1,435 U.S. companies for more than 40 years, seeking those that made significant improvements in their financial performance over time. The distinctive pattern sought was: ?Fifteen-year cumulative stock returns at or below the general stock market, punctuated by a transition point, then cumulative returns at least three times the market over the next 15 years. ?The search identified 11 outperforming companies, all in different industries, that were called the ?good to great? companies. To contrast these companies with similar peers within the same industry, the search also selected a group of comparison companies that failed to make the leap from good to great. Collins then set out to examine the transition point. What distinguishing features did the good-to-great companies have that their industry counterparts did not? At the heart of the findings about these outstanding companies is what Collins refers to as the ?hedgehog concept? ? how to find the one big thing that the company must focus on. According to Collins, those who built the good-to-great companies were, to one degree or another, hedgehogs. Those who led the comparison companies tended to be foxes, never gaining the clarifying advantage of a hedgehog concept, being instead scattered, diffused and inconsistent. This insight is complemented by Peter Drucker (2004), an influential management guru, who asserts that the first question an effective executive should ask is: ?what needs to be done?? Asking this question and taking it seriously, he asserts, is crucial for managerial success; and that the answer almost always has more than one urgent task, but the effective leader only concentrates on one task. In this last respect, Drucker emphasizes: ?If they [executives] are among the sizeable minority who work best with a change of pace in the working day, they pick two tasks. I have never encountered an executive who is effective while tackling more than two tasks at a time.?

Jan 1, 2011

By J. M. Garcia

This paper highlights several management practices from the oil and gas industry to support the proposition that financial performance in the finite, non-renewable resource business relates more to upstream rather than downstream activities. Based on the analysis of nine oil and gas companies, this study supports a previous study involving fourteen mining companies that showed reserves growth is one of the main levers of value creation in mining. Interestingly, this study also finds that the oil and gas industry has been historically more profitable than mining. The reason, it is argued, is that oil and gas companies count on management practices that focus primarily on the upstream segments of the business, compared to the traditional downstream focus of mining. This paper delves into these ideas to conclude that what mining may need to improve its competitive advantage is a new organizational framework. Another conclusion is that the upstream management focus is vital not only for strategy formulation in the resource business, but also for policy formulation in economies based on the export of finite, non-renewable resources.

Jan 1, 2011