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By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By Mauk JL, Arehart GB

Quartz veins from the Martha Hill epithermal gold-silver deposit, Waihi, commonly exhibit crustiform banded textures. Visual differences observed between bands are primarily the result of a 1 to 1500 ¦m variation in quartz grain size. Quartz band textures are dominated by anhedral interlocking quartz mosaics, commonly associated with minor adularia and sulfide phases; these textures are interpreted to be products of amorphous silica crystallisation. The occurrence of rhombic adularia suggests that prolonged boiling influenced parent fluids. In contrast, the presence of coarsely crystalline bands, made up of subhedral to euhedral quartz grains, infers primary crystal growth from solution; evidenced by the occurrence of growth-zoned quartz within these bands. There is a narrow range of 3.3%o in 618Oq,,,,,= between maximum and minimum isotopic values for the deposit. Significant overlap in 618Oqu,, values are observed between the Martha and Welcome lodes. However, statistically significant and commonly systematic differences do occur between individual bands analysed in most samples. Temperature fluctuations may be the dominant factor responsible for observed inter-band variation.

Jan 1, 1995

By B. Wasmund, B. Haneman, G. Sheehan

Success in implementing new technology for metallurgical processes is not a foregone conclusion: This paper includes a survey of 23 new technology-based metallurgical plant start-ups, in which the authors have identified 7 successes, 9 difficult start-ups, and 7 failures. Success is defined not only as meeting the schedule and budget to the end of mechanical completion; the key goal is a fast ramp up to the full design production level, with minimum plant and equipment modifications required after start-up. This paper sets out the key factors that underlie achievement of a quick production ramp up curve, as determined from the authors' project experiences and a quantitative analysis of over twenty metallurgical plant start-ups, both pyrometallurgical and hydrometallurgical. Thorough test-work and pilot plants, plus appropriate scale-up to the full commercial plant, are key determinants of success in implementing new technology in metallurgical processes. Another critical factor is the number of new elements and their interactions. Project phasing is also particularly important for new technology projects, with appropriate review after each phase to develop a risk mitigation plan for the subsequent phase. New technology projects need committed champions to advance the project in the face of sceptics, but also require dispassionate and unbiased experts to ask the hard questions. As a project evolves, it is important to periodically question the appropriateness of assumptions, as well as to re-assess the relevance and completeness of data from test-work I pilot plants I industrial analogues. Sufficient human and financial resources are required to complete the often arduous implementation phase. During the ramp-up period, the operation generates little positive cash flow; however, significant expertise and capital are required for the de-bottlenecking projects that are often necessary to reach the plant's design output level.

Jan 1, 2011

By P. K. Sollars, M. A. Alspaugh

In May of 1996, Twentymile Coal Co. began Longwall mining in the Foidel Creek Mine's East Mine District. These Longwall panels are some of the longest in the world (5.48 km/18,000 ft) with very difficult and challenging geometry. The conveyance system is 1,800 mm (72 in) wide, has a 4,500 mtph (5,000 stph) capacity and employs multiple tripper drives. The trippers include traditional powering designs as well as unique regeneration and braking designs. Several components were developed specifically for this application including a mobile tail brake. Control algorithms were carefully developed and tested via computer modeling. A world production record was achieved in the third month of operation and over 1 million tons were mined in June 1997.

Jan 1, 1998

By R. Le

"The principles of noise control aredescribed with particular emphasis on personalactive units as opposed to passive ear muffspresently in general use. A discussion followsfor their potential use in a mining environment.RÉSUMÉNous décrivons brièvement quelquesprincipes de contrôle de bruit à l’usage person-nel, puis nous passons en revue quelquescasques commerciaux dotés de ces circuits àprincipe actif. Enfn nous discutons de leurusage potentiel dans le contexte minier.IntroductionLe casque à principe actif est un produitqui existe commercialement, mais encore peurépandu en usage, sûrement à cause du prix,mais aussi de sa méconnaissance par le grand public. Il arrive parfois qu’un journaliste trouvele produit fantastique et le médiatise commeune réalisation de son pays (ou de sa province),mais peu savent qu’il s’agit là d’un principe quia commencé dans les années 30. Par delà lesensationnel, il reste que si l’on veut mettre lamain sur un de ces casques pour l’essayer, on nesait où l’obtenir. De plus, les casques n’utilisentpas tous le même principe actif. C’est la raisonpour laquelle nous faisons cette brève compara-ison. Nous le faisons en mettant l’accent pourune possible utilisation dans le domaine minier,car c’est dans ce milieu que les usagers sontconfrontés aux bruits les plus intenses qui peu-vent endommager leur système auditif, ce quin’exclut pas les autres situations (travaux publics, foresterie, écoute hi-f, etc.)."

Jan 1, 1997

By Jörgen Appelgren

Atlas Copco, a leading supplier of equipment and services to the mining and construction industries, is consistently pursuing its strategy to offer the most productive and economical solutions by continuously offering new innovative products. These are in most cases developed and tested in close cooperation with demanding end users before being officially launched on the international market. The demands for higher productivity and improved overall economy have resulted in systems for automation of the drilling cycle and also tools for integrating the Drilling equipment to the production control system used by the customer. In terms of improving the blasted material quality, Atlas Copco has placed emphasis on hole straightness and the need for hole logging and positioning. By applying state of the art technology to today?s computerized drilling rigs, major steps in improving overall drilling and blasting performance have been achieved. This paper will give some examples derived from the latest development of solutions for the Rotary drilling product line.

Oct 1, 2009

By J. G. Walters

This report presents the results of an investigation in Which the chloroform solubilities of coals and chars are related to rank, temperature of thermal treatment, time at a given temperature, vacuum thermal treatment, plasticity, oxidation, blending, and mass spectral analyses and molecular weights of the extracts. It was found that the quantity of chloroform extract obtained from chars can be altered by creating a vacuum above the charge during preparation of the char, increasing the time at temperatures within the plastic temperature range, and by utilizing different rates of heating to attain a given temperature. Relationships found between the chloroform solubilities of chars produced at temperatures within the plastic temperature range and the relative fluidities in this temperature range indicate that the chloroform-soluble portion of the char is a significant component of the plastic mass. Chloroform-extract yields from chars made from blends of coals cannot be calculated from chloroform-extract yields obtained from chars made from the component coals.

Jan 1, 1967

By Edwin B. Cook

This report presents the results of calculations of the equilibrium composition of the products of combustion with air of six different mixtures of octane CgH18, plus PbEt4 and halogen-bearing scavengers at three air-fuel ratios, at pressures of 5 and 30 atm., and at temperatures of 350°, 1,000°, 1,800°, and 2,000° K. The air-fuel weight ratio has the values 12, 15:12, and 18. The concentration of PbEt4, M, in milliliters per gallon of iso-octane, has the value 1 or 3. The word "case" is used to designate the halogen concentration. Three cases have been considered [ ]

Jan 1, 1953

By J. N. Van der Merwe

Following the Coalbrook disaster in 1960, research into coal pillar strength resulted in the adoption of the concept of a safety factor for the design of stable pillars in South African coal mining. At the time when the original statistical analysis was performed by Salamon and Munro in the early 1960s, 27 cases of failed pillar workings were considered suitable for inclusion in the database of failed pillars. Pillar failure did not stop after the introduction of the safety factor formula by Salamon and Munro (1967). In the ensuing years, pillars that were created before the application of the formula deteriorated and later failed, as did ones that were created after the introduction of the formula. This means that over time, the database of failed pillar cases increased in size, allowing ever more reliable analyses to be performed. The number of failed cases in the database had grown from the original 27 in the 1960s to 86 by 2011. All the failed cases are contained in the updated database. The database of stable pillars, which is also used in the derivation of strength formulae, has now been extended from 125 to 337 cases. The new database of intact pillar cases is more complete as it bridges the time gap between the Salamon and Munro (1967) and the Van der Merwe (2006) databases. The original requirements for inclusion into the database were satisfied in the compilation of this latest collection. The characteristics of the original database of intact pillars did not change in a meaningful way. The mining depth and pillar dimensions of the new database are largely as they were in the original database. Time-related trends with regard to pillar dimensions and depth of mining could not be found, indicating that the geometrical parameters of coal mining in South Africa have not changed meaningfully in approximately a century of mining. The characteristics of cases in the updated database of failed pillars does not differ substantially from the one published by Van der Merwe (2006). The same difference between that database and the original Salamon and Munro database, namely that the average safety factor of the failed cases had increased dramatically, from 1.0 to 1.5, is still apparent. This may be due to the inclusion of more failures from specific areas that exhibit a disproportionate number of failures at higher safety factors. These areas are the Vaal Basin, Klip River, and Free State coalfields. The new database confirms yet again that there is no correlation between the safety factors of failed pillars and their time of failure. The safety factor on its own is thus not a reliable predictor of longterm stability of pillars. Keywords coal pillar, stable pillar cases, pillar collapse, pillar data base.

Nov 1, 2013

By P. L. Woolf

Three trials with oxygen-enriched unheated blast air are described. The trials were conducted in the Bureau of Mines experimental blast furnace located in Bruceton, PA. The first trial utilized moisture addition to the oxygenated blast. The second and third trial were conducted with natural gas injection. The test was basically a feasibility study and in that regard the practice was demonstrated to be feasible and also have possible advantages over hot blast operation. The testwork was conducted in 1964 and 1965 as part of a continuing study of iron making technology in cooperation with several North American Steel Companies.

Jan 1, 1985

By H. C. Fuller

Depletion of iron ore in the Nation's large deposits has directed attention to other sources. One of these is the titaniferous iron ore of the Iron Mountain, Wyo., area. Tests were made to determine the feasibility of smelting this ore, which contains about 20 percent titanium dioxide (Ti02), in an electric-arc furnace to produce pig iron. Initial tests, which were made in a 30-pound-capacity induction furnace, demonstrated that the iron could be easily reduced to metal and that limestone was a suitable and effective flux. Larger scale tests then were made in a 50-pound-capacity electric-arc furnace to obtain the more detailed information necessary for the planned continuous operation of a still larger arc furnace. The principal facts determined by preliminary batch-smelting studies were that (1) 9 pounds of limestone flux was required for each 100 pounds of ore smelted, (2) expensive coke was not required because coal proved to be a satisfactory reductant (near stoichiometric carbon was optimum), and (3) overreduction, which produced a viscous slag, must be avoided.

Jan 1, 1961

By J. W. Cooksley

Pyrometasomatic zones are a type of replacement deposit, normally in a carbonate rock unit, which consists of a zoned, coarse-grained, generally iron-rich mixture of calcium and magnesium silicates. These zones or rock masses are also called ?skarn,? and ?tactite?. They are formed as a result of the interaction of a shallow intrusion of magma with a carbonate or calcareous host rock and are considered to be of hydrothermal origin. Three environments of pyrometasomatic deposits are depicted in Figure 1. Of course, the interaction takes place at high temperatures. Pyrometasomatic zones are categorized as calcic or magnesian, depending on whether the intrusive interacts with a limestone or a dolomite. Common pyrometasomatic zone minerals are garnet, epidote, quartz, calcite, wollastonite, actinolite, hedenbergite and diopside. Pyrometasomatic zones are of considerable economic importance because they contain ore deposits of tungsten, molybdenum, copper, lead, zinc and iron. According to Rose and Burt (1979), the chronological sequence in the formation of a ?typical? pyrometasomatic deposit is as follows: 1. Shallow intrusion of magma at 900-700°C into carbonate sediments.

Jan 1, 1981

By D J. Williams, G W. Wilson, S, A B. Tran

A comprehensive field program was implemented to evaluate the internal structure and hydrology of two full-scale waste rock piles. The excavation of waste rock dumps for in-pit disposal at the two mine sites provided an opportunity to characterise the in situ properties of the dumps given contrasting geologic and climatic settings. The internal structure and materials within the dumps were observed and sampled as the waste rock piles were being excavated and placed in the open pits for permanent closure. The field program was designed to fully characterise the structure and material properties of the waste rock. The alteration of the material by physical and chemical weathering was also observed. Samples were analysed for paste pH, water content, grain size distribution and geochemistry. In situ density and matric suction were also measured. Soil water characteristic curves and saturated hydraulic conductivity were measured for representative materials. These properties were used to predict seepage pathways through the waste rock and the resulting outflow geochemistry using the finite element model SEEP/W. The materials in the dump at Site 1 were predominantly fine-grained in texture and highly weathered. The presence of dipping beds with alternating coarse and fine materials was evident throughout the profile of the dump. The structure of the waste rock appears to have an impact on the hydrologic pathways within the waste rock pile. The material in the dump at Site 2 was found to be competent and resistant to particle size breakdown. The particles range in size from clay size to large boulders with the median particle size being approximately 125 mm in diameter. The coarse-grained texture of the waste rock resulted in a loosely packed arrangement of coarse particles with little matrix material infilling the pore spaces between the coarse-grained particles. Seepage modelling for Site 1 was completed to predict seepage paths based on observed structure and hydraulic properties measured in the laboratory. The modelling showed that materials with a fine grain size distribution become the dominant pathways for flow through the waste rock pile. The modelling also showed that layers with high silt and sand contents are subject to the highest flow rates. Finer grained clay rich layers have a low hydraulic conductivity and do not convey large volumes of water. Alternately, coarse gravel and cobble materials are unsaturated under values of matric suction that approach the residual water content of the material and do not transmit liquid water. The seepage modelling together with the results of the geochemical analysis show that the dominant particle size that receives the most fluid flow and flushing ranges from fine sand to silt, corresponding to materials with air entry values ranging between 5 kPa to 50 kPa.

Jan 1, 2003

The efficient and profit-maximising daily and long-term management of the Vera Nancy resource depends on decisions based upon assay data. This paper examines the range of sample sources, the methods of sample collection, assay techniques and Quality Assurance used by the mine. The orebody has a relatively low nugget effect for a gold mine (around 25 per cent) and this greatly assists in reducing sampling error and producing reliable assay data for production decision-making. Reconciliation between mine and back-calculated mill grades generally sees the mine under-calling mill grades by around four per cent.

Jan 1, 2000

By V. C. Perini

The North Central Texas district as herein defined includes the counties of Brown, Callahan, Coleman, Comanche, Coryell, Eastland, Erath, Fisher, Hamilton, Haskell, Hood, Jones, Lampasas, Mills, Nolan, Palo Pinto, Parker, San Saba, Shackelford, Stephens, Stonewall, Summer-ville, Taylor, Throckmorton and Wise. These counties as listed are the counties of District 7B, State Railroad Commission. In the new designation of districts for the Transactions, the North Central Texas district includes most, but not all, of the counties of the previously classified West Central Texas district. This district covers the south central crest and the west flank of the Bend flexure north of the Llano uplift. The west flank of the Bend flexure is on the east boundary of the Permian Basin of West Texas. The greater part of the oil and gas produced in this district has been from Pennsylvanian strata. Some oil and gas has been produced from the lower Permian (by the latest, selection of the Pennsyl-vanian-Permian boundary) and minor amounts from the Mississippian and Ordovician sediments. Increasingly important quantities of oil and gas are to be expected from the older sediments by deeper development in proven fields and by new discoveries. Most of the oil and gas in the district has accumulated in localized, well-defined structural traps in limestone and sandstone reservoirs and in traps due to stratigraphic changes in sedimentation, mainly porosity traps in limestone and sandstone lenses, both usually associated with some structural feature. These features are found by surface and subsurface geological structural mapping, by core drilling and by geophysical surveying. Geochemical methods are also the basis for some wildcatting. The demand for sweet crude oil from this district is firm for local and national consumption, but the market price for the oil remains practically the same as in 1941. The price is not adequate to meet the requirements of the average independent operator with the continued advance in production, tievelopment and wildcatting costs. Stripper wells are being plugged daily and should be jealously saved for the future local and national reserves, especially in view of the fact that new discoveries of commercially important oil and gas reserves are not keeping pace with consumption. An expected economic disruption attendant upon the national war effort has arisen and continues in the future outlook for this district. The lack and delay of securing replacement parts for almost all oil-field equipment has handicapped and delayed operations and has decreased efficiency in wildcatting, development and production. Sufficient experienced drilling, scientific and office personnel is lacking because of inductions in the armed forces and migration to war industries during the period before manpower conservation became effective. The office personnel of the average oil and gas producer continues to be swamped by the increasing demands for reports by state and federal bureaus. An average of IQ days

Jan 1, 1944

By V. C. Perini

The North Central Texas district as herein defined includes the counties of Brown, Callahan, Coleman, Comanche, Coryell, Eastland, Erath, Fisher, Hamilton, Haskell, Hood, Jones, Lampasas, Mills, Nolan, Palo Pinto, Parker, San Saba, Shackelford, Stephens, Stonewall, Summer-ville, Taylor, Throckmorton and Wise. These counties as listed are the counties of District 7B, State Railroad Commission. In the new designation of districts for the Transactions, the North Central Texas district includes most, but not all, of the counties of the previously classified West Central Texas district. This district covers the south central crest and the west flank of the Bend flexure north of the Llano uplift. The west flank of the Bend flexure is on the east boundary of the Permian Basin of West Texas. The greater part of the oil and gas produced in this district has been from Pennsylvanian strata. Some oil and gas has been produced from the lower Permian (by the latest, selection of the Pennsyl-vanian-Permian boundary) and minor amounts from the Mississippian and Ordovician sediments. Increasingly important quantities of oil and gas are to be expected from the older sediments by deeper development in proven fields and by new discoveries. Most of the oil and gas in the district has accumulated in localized, well-defined structural traps in limestone and sandstone reservoirs and in traps due to stratigraphic changes in sedimentation, mainly porosity traps in limestone and sandstone lenses, both usually associated with some structural feature. These features are found by surface and subsurface geological structural mapping, by core drilling and by geophysical surveying. Geochemical methods are also the basis for some wildcatting. The demand for sweet crude oil from this district is firm for local and national consumption, but the market price for the oil remains practically the same as in 1941. The price is not adequate to meet the requirements of the average independent operator with the continued advance in production, tievelopment and wildcatting costs. Stripper wells are being plugged daily and should be jealously saved for the future local and national reserves, especially in view of the fact that new discoveries of commercially important oil and gas reserves are not keeping pace with consumption. An expected economic disruption attendant upon the national war effort has arisen and continues in the future outlook for this district. The lack and delay of securing replacement parts for almost all oil-field equipment has handicapped and delayed operations and has decreased efficiency in wildcatting, development and production. Sufficient experienced drilling, scientific and office personnel is lacking because of inductions in the armed forces and migration to war industries during the period before manpower conservation became effective. The office personnel of the average oil and gas producer continues to be swamped by the increasing demands for reports by state and federal bureaus. An average of IQ days

Jan 1, 1944

By Charles A. Seitz

This Bureau of Mines report describes a chromatographic method for analyzing impurities in helium that utilizes a helium carrier gas contain-ing 25 to 30 ppm Ne. An example of the effect of trace amounts of nitrogen, methane, and moisture on the detector's response is shown. The added neon in the carrier does away with irregularities of the analysis which were experienced when the carrier contained up to 3 ppm Ne. The addition of 25 to 30 ppm Ne causes a loss of sensitivity, but the re-maining sensitivity is adequate for routine analyses. The high-neon carrier allows positive and more linear responses for eight impurities: neon, hydrogen, argon, oxygen, nitrogen, methane, carbon dioxide, and ethane. Neon concentration levels of 0.02 to 125 ppm in helium carrier gases were studied. The high-neon carrier has been in successful rou-tine use in Bureau of Mines helium facilities since October 1981.

Jan 1, 1985

By W. W. Agey

Under terms of cooperative agreements, the Federal Bureau of Mines Inter-mountain Experiment Station assisted the General Services Administration (GSA) in operating the manganese-ore purchasing depots at Deming. N. Mex., and Wenden, Ariz. A resident metallurgist stationed at the depots directed sampling of the ore lots for assaying, took samples for amenability testing, calculated acceptances for payments to shippers, and served as technical adviser to the depot manager. The Intermountain Experiment Station at Salt Lake City, Utah, tested the amenability of the ores to determine how much of the manganese could be recovered in concentrates assaying a minimum of 40 percent manganese (Mn) and containing a maximum of 16 percent iron (Fe), 15 percent silica (Si02) plus alumina (AI203), 0.3 percent phosphorus (P), and I percent copper (Cu) plus lead (Pb) plus zinc (Zn). All chemical analyses of the ores and test products were done at Salt Lake City. In all, 567 ore lots submitted to the Deming depot were tested by flotation to determine their amenability to concentration into specification-grade material; 421 lots were amenable, and 146 were unamenable, primarily because of high copper content or excessive silica or iron in the flotation concentrate. Chemical analyses totaling 42,700 were made on the ores submitted to the Deming depot and on the products of the amenability-test program.

Jan 1, 1959

By Marcel M. Djivre

The paper will outline the destructive test methods and test procedures including the evaluation criteria currently used at the Materials Testing Laboratory (MTL), Sudbury, Ontario, Canada, a laboratory approved by the Ontario Minister of Labour for the purpose of testing or examining mine shaft ropes or other hoisting appliances. For the evaluation of the mechanical properties of rope samples used in "ultra-deep" single-lift shafts, additional discard criteria used in Ontario, Quebec and South Africa shall be presented. Most of the methods and test procedures currently used at MTL can also be found in the current CSA G4-00 Standard, Steel Wire Rope for General Purpose and for Mine Hoisting and Mine Haulage, published in November 2000. In this latest or sixth edition of CSA Standard G4-00, a new Clause 14 has been added outlining the requirements for in-service destructive testing of steel wire ropes for mine hoisting applications. The CSA G4-00 Standard is also intended for the manufacturing of new ropes, and includes requirements for raw materials and construction features for round strand and flattened strand rope, and locked coil rope in bright and galvanized finish. To-date the Ontario Mining Regulations require only that destructive test of new ropes be performed in accordance with CSA Standard G4-00, but does not require conformity to the Standard, and on the other hand the inservice wire ropes are required to be tested in accordance with CSA G4 and thus require conformity. The author recommends that the Ontario Mining Regulations (and regulations of other mining jurisdictions) be improved in order to ensure quality control in the manufacturing of wire ropes destined for mines in Ontario (and Canada). Also, the author recommends the revision of the CSA G4-00 Standard by the technical committee in order to address manufacturer?s concerns with respect to compliance, and harmonize the Standard with Internationally recognized Standards.

Apr 1, 2005

By M. L. Joy

The heat pipe is a self-contained, passive structure that uses a liquid-vapour fluid cycle to provide high thermal conductance . Through the proper selection of working fluids and container materials, heat pipes have been operated at temperatures ranging from less than -300°F to more than 3,000 °F. The passive nature, high efficiency and configuration flexibility of the heat pipe are presented. The application of McDonnell Douglas Astronautics Company Cryo-Anchor® heat pipes for foundation and support stabilization in permafrost regions is discussed. Using the proven Cryo-Anchor technology base. a proposed application of heat pipes in a cold -region mine ventilation system heat recovery heat exchanger is presented. Information obtained from the development of an air-cooled heat pipe steam condenser provides the technical basis for large -scale heat pipe applications.

Jan 1, 1978