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By T. Schmidt, H. Assadi, F. Gartner, H. Kreye

Among all spraying processes, cold spraying has attracted a special attention in recent years, both as a coating - and more recently - as a rapid manufacturing technique. The interest in this process is mainly because of the fact that the deposition of spray material takes place at moderately low temperatures, and thus, oxidation and unfavourable microstructural changes can be alleviated. In this process, a highly compressed gas, flowing through a de Laval nozzle, accelerates the particles of the spray powder to high velocities of up to 1200 m/s. Although there is no melting of particles prior to impact on the substrate, cold-sprayed deposits can be denser and more tightly bonded as compared to the equivalent deposits produced by conventional thermal spraying methods. The present contribution focuses on this unique aspect of cold spraying. Modelling of particle impact, combined with various experimental observations, is employed to illustrate that bonding of particles and hence material deposition occurs through shear instability - associated with severe plastic deformation and localized heat generation - at the interacting surfaces of particles and substrate. The results of modelling also provide an insight to the influence of material and process parameters on the critical velocity and on the microstructural properties of cold-sprayed deposits.

Jan 1, 2006

"This contribution is concerned with adaptive processing decisions, where the process parameters are optimally adapted to the varying properties of the material input stream. Our starting point is the geometallurgical paradigm that the varying properties of the input stream are considered known e.g. from a geometallurgical model of the mined ore body, and optimal processing parameters are computed from them, by finding the parameter seaming optimal in a computer simulation.This approach however has to work with a lot of uncertainties: The prediction of the geometallurgical ore parameters can only be done with some geostatistical uncertainty. The parameters themselves are only proxies for true ore properties. Model prediction can differ relevantly from actual process results, due to model simplifications. Due to these uncertainties the computed processing choices can turn out to be inferior to simple non-adaptive processing. In this contribution we focus on the uncertainty of the ore properties and analyse this effect systematically, by modelling this uncertainty effect mathematically and in computer simulations. The most important findings are:(a) Processing choices not taking into account the uncertainty sometimes even perform worse than simple non-adaptive processing, for the sole reason of ignoring the uncertainty effect.(b) Ore properties, not adequately reflected in the ore description, might require different approaches, in which the observed processing behaviour feeds back into process control.(c) Bayesian decision theory allows computing optimal processing choices combining the information from the mine (geostatistical predictions) and from the process feedback. These choices give much more robust choices and do not suffer from the drawbacks described for the simple approach we started from.These new approaches can substantially improve the performance of adaptive processing in existing plants."

Jan 1, 2016

By Jin-Hwa Song

Rolling temperatures and cross rolling ratios were varied to investigate the effect of crystallographic texture of alpha-phase on the anisotropy of mechanical properties in modified Ti-6A1-4V alloy. Hot rolling method was unidirectional and cross rolling, during which the rolling temperature was in the range of 830°C and 920°C. Cross rolling ratios were varied from 0.3 to 1.0 at 875°C. For unidirectional rolling, as the rolling temperature increased texture changed from the mixed basal and transverse texture to the simple transverse texture. Contrary to other work, it was observed that the maximum intensity of transverse components increased with the increase in rolling temperature. For cross rolling, on the other hand, the transverse texture component was almost suppressed at 830°C, giving rise to a symmetrical basal texture. With increasing cross rolling temperature, the transverse texture components developed again. A simple transverse texture, which showed two maxima appearing circularly 90° apart, was observed at 920°C. It was found that unidirectional rolling could not eliminate the transverse texture, which resulted in the anisotropy of mechanical properties. The anisotropy of mechanical properties obtained from tensile and V-notch Charpy test was closely related to the crystallographic texture and its intensity at each rolling condition. To obtain the isotropy of mechanical properties by cross rolling, it is suggested that cross-rolling ratios should be controlled above 0.5. The variation of rolling temperatures and directions has great influence on the anisotropy of impact value rather than tensile strength.

Jan 1, 2004

In-Situ Leaching (ISL) process plants are low cost producers for uranium deposits where the geology is suitable. In the 1970s, a three-year pilot ISL program occurred on gold ore from the Ajax Mine, Cripple Creek District, Colorado, using a chloride and iodide solution [1]. The test was halted due to poor results. With gold and silver the international ISL progress has been slow; however the potential for low capital expenditure (CAPEX) and operating expenditure (OPEX) with large low grade deposits is real. Unless the metallurgy has been demonstrated there are significant risks which could be fatal flaws to an ISL gold or silver project. The metallurgy of gold ISL projects is far from simple and it is early days with project development.

Jan 1, 2011

By R. B. Allen, E. E. N. Smith, B. C. MacDonald

"LocationTHE MAIN PROPERTY and townsite of Eldorado Mining & Refining, Limited, Beaverlodge Operation, is on the north shore. of Beaverlodge lake, •about seven miles north of the deserted town of Goldfields on lake Athabasca, and four hundred and ninety air-miles equidistant from Prince Albert, Saskatchewan, and Edmonton, Alberta. Both Eldorado Airlines •and Canadian Pacific Airlines maintain scheduled flights from Edmonton to the 4,000-foot airstrip on the north boundary of the Company property. Bi-weekly flights are made by Saskatchewan Government Airways from Prince Albert. Men and priority freight are flown by Company aircraft direct from Edmonton. From June to-September, when the waterways .are ice-free, freight is carried by barge from the •railhead at McMurray, Alberta, down the Athabasca river to Chipewyan, and across lake Athabasca to• Bushell, the terminal on Black bay, lake Athabasca, a total distance of 265 miles.The Eldorado Operation has been connected by a 12-mile, all-weather highway to Bushell. Where the highway crosses the park-land along the Fredette river, the townsite, Uranium, is under construction to provide services to the uranium-producing district. Spur roads have been built to the Ace, Fay, Eagle, •and Martin mines of the Eldorado operation, and to the properties of Pitch-Ore Uranium Mines, Ltd., and Rix Athabasca Uranium Mines, Ltd."

Jan 1, 1954

By Liangtian Liu, Tie Ou, Guangqiang Li, Chenghuan Yu

For stabilizing the production of containing nitrogen steels, a study on nitrogen absorption behavior of killed molten steel has been carried out by means of the RH vacuum device in which nitrogen was used as a driving gas. The results showed that there was an increase of nitrogen content in molten steel under vacuum processing but the rate of nitrogen absorption was slowed down by the surface active elements. Therefore, a kinetic equation for nitrogen absorption of molten steel with apparent first order reaction was derived by constructing a modified model in which the adsorption of closed surface site was taken into account. The experimental results confiimed that the calculated values agreed with the observed ones. This model is suitable for the prediction of nitrogen adsorption operation for containing nitrogen steels.

Jan 1, 2004

By O. Benavente, M. C. Hernández

Selenium is obtained mainly from copper anode slimes, which is a by-product of the copper electrorefining process. Selenium is present in copper anode slimes as silver and copper selenides. Traditionally, selenium has been obtained by pyrometallurgical processes; however, hydrometallurgy has now been incorporated either full or partial to the conventional process. Some hydrometallurgical processes are been developed and used at laboratory level an industrial scale. This document describes theoretical background and results of characterization and dissolution of selenium from a decopperized anode slimes in an alkaline oxidizing system. The results have indicated that the oxidizing leaching process reaches a practically complete dissolution of selenium (up to 90 %); the undissolved portion is due to the generation of a AgCl around the particle surfaces that delays the progression of the reaction. The results indicated that 90% of selenium extraction can be obtained by dissolution under moderate conditions of pH, temperature and reagent concentration in oxidizing medium. INTRODUCTION Selenium is distributed in the earth's crust in most rocks and soils. Selenium is essential, as it has wide range of applications in the medical and food industries as well as, used in semiconductor, sensors and photochemical devices. Selenium is rarely found in the native state, 90% of selenium is obtained from copper anode slimes, which is a byproduct of the copper electrorefining process (Lu, Chang, Yang, & Xie, 2015; Xiao et al., 2017; Yang et al., 2018). In anode slimes, selenium is present as an intermetallic compound, as Ag-Cu selenides. Currently, selenium is recovered from the anode slimes via hydrometallurgical and pyrometallurgical processes (Lu et al., 2015). The traditional pyrometallurgical method recovers selenium effectively, but faces difficulty as a result of increased energy costs and strict environmental regulations associated with the process (Li, Yang, Jin, Chen, & Tong, 2017). Therefore, hydrometallurgical processes are proposed in oxidizing medium such as nitric acid, alkaline leaching with sodium nitrate, wet chlorination and pressure leaching, amongst others (Hait, Jana, & Sanyal, 2012; Kim & Wang, 2010; Xiao et al., 2017; Yang et al., 2018).

Jan 1, 2019

By J. G. Schofield, R. C. Francki, K. M. Donaldson, F. E. Ham

"Developments in pyrometallurgical technology have led to larger furnaces operating under more intense process conditions. In order to maintain the reliability of these furnaces, which are frequently single-line units, the design of the refractories, cooling systems and bindings has become more critical. Traditional thermal and chemical requirements for the refractory to resist slag attack must still be carefully determined. The larger, modem furnaces have placed a new emphasis on the structural properties of the refractories as well as their thermal properties to suit the extensive cooling systems. Based on operating experience, supported by computer models, the refractories and bindings are designed to work together to accommodate the thermal expansions and contractions in order to minimize permanent furnace growth and the risks of leaks. IntroductionElectric furnaces are used extensively in smelting copper and nickel ores and concentrates. Laterite nickel ores and high-magnesia copper, nickel and platinum sulphide concentrates are smelted virtually exclusively in electric furnaces to accommodate the high melting point of the slags produced. Although a number of smelting processes using oxygen-enriched and/or preheated air have been developed to replace reverberatory furnace smelting of conventional copper and copper-nickel concentrates, (lnco, Noranda, Outokumpu, Mitsubishi) electric matte furnaces remain a strong process alternative for these concentrates, either as the primary smelting vessel or for cleaning the slags produced from these processes.The development of large, high-powered furnaces has been an important factor in the growth of electric smelting technology, as evidenced by the list of operating matte and ferronickel furnaces shown in Table I. Because the compressive forces required to maintain a tight, leak-free furnace increase with furnace dimensions, the selection and design of the furnace refractories, cooling systems and bindings require increased attention."

Jan 1, 1993

By G. A. Buckland

"The development, in Ontario, of a common industry-wide program for the development of skills for employees in underground hard-rock mining is described. This program is designed to increase the productivity of individual workers by improving their skill levels, while at the same time ensuring that employees are instructed in the requisite safety and health aspects of performing various underground tasks. The program's development through a management-labour-government tripartite approach is described. How this program was coordinated with new Government Regulations on Occupational Health and Safety dealing with mandatory training of underground employees is also outlined. IntroductionThis paper will describe briefly what modular training is all about and outline why, and how, it was developed in Ontario on an industry-wide basis. Simply stated, what's been accomplished to date is an industry-wide program for developing the mining skills of underground production employees.The basic objective of this program is to improve the productivity of underground workers. It involves developing an employee's skills to improve his productivity and, because working productively involves knowing how to do a job safely, the program includes instructing an employee in the various safety and health aspects of underground work. An important and, I believe, distinguishing point about the development of this program is that it has been done with the full participation, cooperation and commitment of management, labour and government.It's of considerable interest to note that companies in Ontario who are now using this program are finding that new employees are approximately six months further advanced in productivity than was the case before its use, and in some cases the frequency of accidents has shown a reduction among those employees who have taken this program as compared to those who haven't"

Jan 1, 1980

By William Petruk, Donald Leroux, Michael Cooper

"Brunswick's primary flotation circuit (CuPb) produces a low grade concentrate containing considerable amounts of undesirable sphalerite and pyrite. To determine the cause of the poor selectivity, a series of Quantitative Mineralogical Analyses (QMA) were performed on several CuPb circuit streams. It was observed that significant fractions of sphalerite and pyrite reporting to the concentrate was liberated, meaning that their depression was not complete. The study highlighted the need for some R&D efforts to be spent in sulphide flotation fundamentals.IntroductionThe viability of many mining projects strongly depends on the performance of their concentrators. More than ever, competitive grade concentrate and high metal recoveries are criteria of paramount economic importance. The selectivity of solid/solid separation processes used in concentrators must be maintained at high levels or continuously improved.Flotation is the solid/solid separation process used by most base metal producers. In spite of its low operating cost, flotation remains a very complex process. To make it selective, precise reagent dosages and electrochemical conditions must be maintained. The difficulty in controlling flotation lies in the numerous heterogeneous reactions that can take place between the different solid, liquid and gaseous phases involved. This complex chemistry makes flotation selectivity difficult to understand and, therefore, to improve from a theoretical point of view.Brunswick Mining and Smelting, near Bathurst N.B., operates a 10500 tpd concentrator which produces four concentrates through five stages of sequential flotation (Figure I). Various reagents are added at key process stages while the ore undergoes different electrochemical conditions. Although the selectivity is important at all stages, the performance of the very first separation, the CuPb circuit, is the most critical. It is here where mineral misplacement to the wrong stream has the greatest economic consequences."

Jan 1, 1996

By Richard C. Corson

"Modern microprocessor systems make it possible to use several variables to anticipate changes in the process and to react with responses before upsets can be magnified by the process or by control action.Through tighter control, ""insurance"" can be eliminated from process set points without affecting product quality. In actual operation with a traveling grate furnace this control philosophy has produced savings of up to 20% in fuel consumption and 8% in fan power usage while producing a more consistent quality product.IntroductionA straight grate indurator, or pelletizing machine, consists of a continuo us moving train of pallets on which a feed stream of unfired, ""green"" pellets is deposited on a hearth layer o f fired pellets. This bed moves through several zones in the furnace where it is dried, preheated, fired and cooled by streams of gases which are pulled or blown through the bed by a series o f large process fan s. Control systems for straight grate plants are designed to maintain gas flow through the machine to ensure that sufficient time and heat are available to raise the temperature of the entire green bed to 1300°C where hematite bonding take s place.For the pas t two year s a new approach to control systems using microprocessor-based instrumentation has been designed and tested in an existing plant with a straight grate indurating furnace processing magnetite ore. The purpose of the test was to determine the most efficient operating setpoints for all levels of production above fifty per cent of design capacity. Through a combination of feed forward control, variable setpoints and additional loops, significant savings have been realized. Thus far the project has taught us much about control systems design and operation, energy utilization, and the process itself."

Jan 1, 1983

By H. Fujihara, K. Uesugi, H. Toda, A. Takeuchi, K. Shimizu

"Hydrogen is trapped at a variety of microstructures, for example grain boundaries, dislocations and particles. It is thought that hydrogen trapped at trapping sites is redistributed to the other sites under loading and then brittle fracture occurs with hydrogen accumulation. In order to understand hydrogen embrittlement behavior, it is necessary to investigate the time evolution behavior of hydrogen accumulation at each trap site. In the present study, changes in hydrogen distribution are observed under stress using Kelvin force microscopy (KFM) that can visualize hydrogen concentration distribution on material surface at high resolution. Spot-like hydrogen enriched regions are observed on the surface of a material. In addition, hydrogen depleted regions are observed around those enriched regions, and the appearance of hydrogen trap due to particles existing near the material surface is revealed. On the other hand, hydrogen trapped at grain boundary can be visualized. From in this result, it was suggested that crystallographic factors influence hydrogen accumulation. The relationship between initiation and propagation of intergranular crack and hydrogen accumulation under stress will be discussed.INTRODUCTIONHydrogen present in a metal sometimes has significant effects on various properties. Hydrogen in a metal is trapped at a variety of microstructure, for example dislocations and grain boundaries. Grain boundaries, dislocations and micro pores are the major trap sites in aluminum alloys. Some researchers considered that hydrogen redistribution and accumulation between these trap sites in a material with loading plays an important role in the brittle fracture behavior. In general, in intergranular fracture and quasi-cleavage fracture, the hydrogen trapped at grain boundaries and dislocations contributes to fracture behavior, respectively. Recently some researchers have shown that the ductile fracture in aluminum alloys is resulted from growth and coalescence of hydrogen micro pores. Analysis using first principles calculation indicates that intergranular fracture occurs when hydrogen concentration reaches 20 atom H/nm2ongrain boundary. From this report, it is considered that hydrogen redistributed during deformation accumulates locally in order to cause hydrogen brittle fracture. In order to understand hydrogen embrittlement, it is necessary to investigate the time evolution behavior of hydrogen accumulation at each trap site. In the present study, we evaluate the relationship between hydrogen accumulation behavior and fracture behavior in Al-Zn-Mg based alloys. In-situ observation was made by combining the tensile test with Kelvin force microscope (KFM) that can visualize the hydrogen concentration distribution on the material surface with high resolution. We also investigate the relationship between hydrogen distribution behavior and crystal orientation."

Jan 1, 2018

By Carl Sonnen

Reading the newspapers, you will know that opposition to ratification on economic grounds always points to the view that action will result in major price increases for energy (to both industry and households) with consequent severe losses of energy production and a loss of competitiveness for energy-intensive producers (i.e., in your kinds of industries). You might think of this as the ?carbon tax? fear, and you should note that many of the initial policy development experiments included variations of this theme. Analysis reported in late 2000 and into early 2002 reported reductions in energy production in the long run of between 10% and 20%. At the upper end of that view, these were the kinds of numbers reported in the Industry Canada study ?leaked? to the Press last week. The consequences of this approach included significantly uneven negative effects for some provinces (e.g., Alberta, but also Saskatchewan and Newfoundland). It had been agreed by the First Ministers of Canada, however, that the policy should not yield those results so development in recent months has focused on eliminating sector and therefore provincial ?sore thumbs?. Although an emissions trading system, which represents this type of approach and directly impacts costs of production, continues to be featured in the new or current policy and is applied to the Minerals Industries among others, it is designed to be implemented in such fashion that the costs are more moderate than before. And because the industries covered by permits are almost all price takers, there is no device for moving an increased price signal forward to ?consumers?. What this does do is even out negative effects among sectors in the economy and for provinces, but at the expense of government financial results.

Nov 1, 2002

By B. Hart, D. J. Miller, J. T. Francis, M. C. Biesinger, Smart. R. St. C.

Diagnosis of the surface chemical factors playing a part in flotation separation of a valuable sulfide phase requires measurement of the hydrophobic and hydrophilic species that are statistically different between the concentrate and tail streams. Time of flight secondary ion mass spectrometry (ToF-SIMS) can be used to identify sufficient particles of a specific mineral phase for reliable statistics determining a mean value for each species with 95% confidence intervals (1). Using the region of interest (ROI) facility in the Tof-SIMS software, a mass spectrum from each particle, at 1-2 monolayer sensitivity, is recorded and stored. This analysis is reported for a chalcopyrite / pyrite / sphalerite mineral mixture conditioned at pH 9 for 20 minutes in order to study transfer of copper from chalcopyrite via solution to the other two mineral surfaces since this mechanism can be responsible for their inadvertent flotation in copper recovery. Analysis from mineral selection based on specific ToF-SIMS signals (eg. Pb, Zn, Cu, Fe, Fe/Cu) indicated no statistical difference in the copper intensities on pyrite and sphalerite after this conditioning. Principal component analysis (PCA) of the ToF-SIMS imaging data identifies combinations of factors strongly correlated (positively or negatively) in images or spectra from mass spectra recorded at each of 256x256 pixels in a selected area of particles. PCA is a better method of selecting minerals due to multi-variable recognition. It has clearly separated a statistical difference in copper intensities between the sphalerite and pyrite phases. The method has been extended to samples from an operating plant again with excellent phase recognition and diagnostic surface chemistry.

Jan 1, 2004

By Paolo Farina

Slope monitoring radar has emerged in the last ten years as a leading edge tool for monitoring movements in natural and engineered slopes, thanks to its ability to rapidly measure slope movements with millimetric accuracy over wide areas in any weather conditions, obviating the need to install artificial reflectors. In recent years, slope monitoring radar has experienced significant improvements in its performances, mainly thanks to the use of different radar technology, such as Synthetic Aperture Radar (SAR), able to overcome some of the limitations of the first generation of radar and to provide higher spatial resolution, longer working distances and faster acquisition time. One of the leading applications of this technology is today represented by slope monitoring within the surface mining industry. Prominent international mining groups currently employ slope monitoring radar, based either on Real Aperture Radar (RAR) and SAR technology, for active and background monitoring of open-pit walls. The main technical features of typical slope monitoring radar based on SAR technology along with their possible applications are presented in this paper along with recent case studies of successful slope monitoring in open pit mines.

Jun 1, 2012

By M. Wittke

"In the course of the extension of the railway network in Israel, currently the two 4.6 km long tubes of the Gilon Tunnels on the line from Akko to Carmiel are being constructed. The tunnels run through the limestones of the Bina- and Yirka-formations, which locally are karstified. The maximum overburden amounts to 160 m.The limestones are mostly horizontally bedded and vertically jointed. Occasionally also inclined joints exist. The tunnels cross various fault zones, which mostly strike at an acute angle to the tunnel axis and are steeply inclined. The karstic cavities which were encountered during tunneling have partially been filled by clay. In the vicinity of the fault zones, the rock has often been strongly jointed and weathered respectively. The two single-track tubes have a cross section with vertical walls and an open invert. The tubes are connected by cross cuts with a spacing of approx. 250 m.During the tender phase, WBI has elaborated the tender design for a joint venture of a Chinese and an Israeli construction company. After the joint venture had been awarded the contract, the preliminary and the detailed design have been elaborated by WBI and the construction works have been guided. On the basis of the geological description, rock mechanical models have been elaborated, followed by stability analyses on the basis of the Finite Element method. The tunnels have been excavated according to the shotcrete method. The support in most areas only consisted of a very thin shotcrete lining and radial bolts in the area of the roof. Depending on the degree of jointing and weathering, locally advancing support by means of spiles has been applied.The internal lining of reinforced concrete has been constructed in parallel to the heading of the tubes. Mucking and delivery of materials was carried out through the cross cuts.The breakthrough was achieved in April 2014 and thus within schedule. The predicted distribution of the excavation and support classes along the tunnel has been in good agreement with reality."

Jan 1, 2015

By H. O. Olsen

"GeneralTHE IRON ORE at Marmora is a replacement deposit of Precambrian limestone and is overlain with Palaeozoic limestone. It is a low-grade magnetite deposit and the ore will require concentration be-fore it can be used economically for the production of iron and steel.Present plans estimate an annual production of 500,000 tons of concentrate in the form of pellets. This will require mining approximately two million tons of ore and\ waste annually. Shipment of pellets from Marmora to a ship-loading dock at Picton will be made by rail on a year-'round basis. Shipments from Picton to the Lackawanna plant of the Bethlehem Steel Company at Buffalo, N.Y., will be carried on during the Lake shipping season.LocationThe mine, located a mile southeast of Marmora village in Hastings county, Ontario, is 31 miles north of Belleville and 3•7 miles east of Peterborough. Marmora is 130 miles from Toronto and 150 miles from Ottawa. Highway No. 7 passes half a mile north of the mine and Highway No. 14 half a mile west of the mine. The Canadian National railways' branch line between Trenton and Bancroft passes through the property just east of the open pit.HistoryThe Ontario Department of Mines conducted an airborne magnetic survey of the district during 1948 and 1949. Maps of this survey were released to the public early in 1950. Bethlehem representatives carried out ground surveys in the Marmora area shortly thereafter and in June, 1950, commenced diamond drilling."

Jan 1, 1955

By E. L. Jones

THE concentration of tin in the tailing from Sullivan ore has been de-scribed by H. R. Banks, superintendent of the Sullivan concentrator, in a paper presented at the annual meeting of the B.C. Division of the Institute in October, 1941(1). The reduction of the concentrate EARLY EXPERIMENTAL WORK Experimental work on the smelting of Sullivan tin concentrate was done in Trail. Preliminary tests in the laboratory indicated that the concentrate could be successfully treated in an electric furnace. A small electro-thermic pilot plant was built and, at the same time, reduction tests were made in an oil-fired reverberatory furnace. Both types of treatment gave satisfactory results. It developed that no fluxes, other than those already in the ore and in the ash of the reducing agent (either coke or coal), were needed. By using an excess of iron, a complete recovery of the tin in the slag was obtained, but with 20 to 30 per cent iron in the tin. A counter-current treatment was thus indicated, viz., the primary slag was first treated with hard-head (iron-tin alloy) from the refining and final slag smelting, producing tin with 2 to 4 per cent Fe. This secondary slag was subsequently treated with scrap iron to produce tin-iron alloy, and a final slag low enough in tin to waste. By following this line of endeavour, a tentative flow-sheet was drawn up and a successful operation was established. Without resorting to electrolytic refining, a metal comparable in purity to standard tin was produced. Metallurgical results and operating costs were found to be very similar with an electric furnace or a fuel-fired furnace. 'However, electric furnace smelting was chosen because the furnace required was smaller, and because some doubt existed as to the cleaning of the final slag in the reverberatory furnace reduction.

Jan 1, 1944

By Robert T. McKnight

"Traditional techniques for valuing resource projects companies have been primarily based on discounted cashflow methods (DCF) or by comparison to similar projects with an apparent market capitalization. Many resource projects are really forms of options to invest rather than a future cashflow stream. Employing the DCF method to value a resource project which is really an option to invest, can dramatically underestimate the real value of the project. The analytical tools required to evaluate options, while more complicated than the usual spreadsheets used for DCF, are becoming more easily available and usable by managers. This paper will discuss the background of options valuation and some of the tools which will make it easier for managers to estimate the value of projects and companies which have significant real option values.ResumeBob McKnight is a graduate of the University of British Columbia in Geological Engineering, supplemented by an MBA from Simon Fraser University. Following several years in the oil patch with Cities Service and Brascan, Bob returned to Vancouver in 1979 to work for Wright Engineers. He subsequently went on to work for Cassiar Mining, Getty Resources and Endeavour Financial before joining Pincock Allen & Holt Ltd. in 1998. His experience ranges from exploration to feasibility studies, financial evaluations of mining and oil & gas projects, due diligence, project finance, valuations and mergers and acquisitions. He has extensive international mining experience pertaining to such countries as Chile, Mexico, Uruguay, Thailand, Indonesia, Angola, Papua New Guinea, Kazakhstan.What are Options?Options have been around for centuries. They were familiar to Roman and Phoenician traders who were shipping cargoes from Mediterranean seaports. In the financial world, options are types of contracts that generally include the right, but not the obligation, to buy or sell a share, currency or commodity. The underlying commodity price or share price changes are assumed to be lognormally distributed. In this context, options are of two general types, ""call"" options and ""put"" options. Call options have the characteristic of having the right to buy a tradable commodity or currency at a predetermined price for a specified period of time. For the owner of call options, they become more valuable as the price of the underlying commodity increases. For the seller of call options, these options become an increasing liability as commodity prices rise, since there is the obligation to sell the commodity at a predetermined (perhaps lower-than-market) price. This characteristic of call options recently became high profile with the sharp rise in gold prices last year. The value of gold call options sold by certain producers increased their associated liabilities to the point where margin calls were made."

Jan 1, 2003

By Alexander Smith

"The three principal known mineral deposits of the Taku River area lie in the Tulsequah synclinorium. The axis of this north-south trending structure is along Tulsequah River valley; about 6 miles east of the eastern contact of the Coast Range batholith.The one proven mine of the area, the Polaris-Taku, is on the west side of the valley. It is a gold property, the gold occurring in fine needles of arsenopyrite disseminated in carbonatized volcanics. The mine was originally called the Whitewater, and the adjacent area the Whitewater gold belt. During the years 1937 to 1942 gold having a value of $3,284,000 was produced from 313,500 tons of ore milled."

Jan 1, 1954