Search Documents

In constructing a financial model of a project significant effort is expended on capital and operating cost estimation, commodity price forecasts, and choice of discount rates while uncertainty in the primary input, the reserve, is often completely overlooked. The aim of this paper is to highlight the impact of uncertainty in the resource/reserve estimation process on the assessment of the financial performance of a project. Four qualitative processes have an impact on resource/reserve uncertainty. These stages are: 1.Ore definition 2.Geological interpretation 3.Resource estimation 4.Ore reserve estimation and mine planning. Each stage contains a number of tasks that may be considered as key performance activities (KPAs). Optimizing the manner in which these KPAs are completed can remove a great deal of uncertainty and error from the resource/reserve process. Examination of these KPAs within a company can also provide an insight to the quality of the information underlying the project. This will allow the company to identify any shortcomings in the data and to assess the resulting risks (Gilfillan, 1998). A hypothetical financial model based on a gold operation has been used to estimate the potential effect of resource/reserve uncertainty on revenue. Monte Carlo simulation has been employed to simulate a number of hypothetical scenarios: 1.a base case scenario which assumes no major errors or biases, but contains realistic margins for uncertainty that would exist in any project where work is being completed to the limit of best endeavours 2.a poor sampling scenario which assumes poor sampling practice and lack of understanding of sample preparation 3.a poor resource estimation scenario which assumes poor modelling and inappropriate choice of interpolation technique, and 4. a ?typical? scenario which represents a project where the majority of KPAs are not performed as best as they could be. The results show that realistic uncertainty ranges can generate changes in the estimate of potential revenue of plus or minus 30%.Therefore, it is important to allow for errors in these processes in any financial analysis or feasibility study. It is recommended that, when building a financial model, are view of relevant resource/reserve KPAs be carried out and appropriate ranges for uncertainty be applied to provide a range of potential outcomes. These outcomes can then be factored into the detailed cash flow analysis in order to ensure that technical uncertainty is built into financial decisions.

Jan 1, 1999

By M. M. Botz

There are currently more that 460 mines worldwide that utilize cyanide for gold and silver extraction. Despite this large number of cyanide-related mining operations, there have been no published accounts during the previous 25 years of the death of humans due to cyanide as a direct consequence of major mining-related environmental incidents. All published accounts of human deaths due to mining-related environmental incidents have been the result of physical inundation with tailings or waste rock materials. It appears that major mining-related environmental incidents have not been concentrated in any geographic location, are likely to occur regardless of the size of the mining company and do not occur more frequently with a specific type of mining activity. Several cyanide treatment and recovery technologies have been widely demonstrated to reliably control cyanide levels in mining solutions. With proper use of these technologies, tailings cyanide concentrations can be maintained at levels protective of wildlife while reducing the potential for adverse environmental incidents. The development of an international cyanide code of practice or management plan is recommended and should take into consideration the adoption of a weak-acid-dissociable (WAD) cyanide standard that maintains the levels entering a tailings impoundment below 50 mg/L.

Jan 1, 2001

By T. Schmidt, J. Merza

"This study considers two lead/zinc/silver orebodies which have historically had a problem with pyrite, pyrrhotite and sphalerite contamination in the lead circuit. The problem was previously addressed with high dosages of sodium cyanide as the primary depressant. However, large amounts of cyanide led to environmental problems in the effluent, especially during winter months. The objective was to reduce cyanide consumption while maintaining or improving overall lead grade and recovery via the reduction of the undesirable sulphides.Extensive laboratory and mill testing was necessary to determine the optimal operating parameters for continuous plant application. Evaluation of data received from this testing has shown that selective addition and optimization of the dosage of Unimax SD100 to specific areas of the flotation and grinding circuits has resulted in improved Pb grade and recovery. Parameters such as pH control, regrind operation, the cyanide/Unimax ratio and sulphide mineral content may also affect the performance of the depressant. Each factor is discussed and optimal operating conditions were determined based on the testing.Results are presented for two case studies. Both indicate that Unimax SD100 improves the lead grade/recovery curve by increasing iron and zinc rejection while reducing cyanide consumption and the resulting environmental concerns. 1. Hart"

Jan 1, 1992

Council for 1996/97 President Dr N.A. Barcza President Elect R.P. Mohring Vice Presidents Senior J.R. Dixon Junior M.H. Rogers Immediate Past President D.A.J. Ross-Watt Honorary Treasurer J.A. Cruise

Jan 1, 1997

By Clarence R. Zink

A problem has always existed in deep and fast drilling situations such as coal overburden drilling, or when drilling with a tight annulus, such as 9 7/8" bits and 8 5/8" pipe. This problem is the difficulty experienced by blasthole bit and blasthole drill rig manufacturers to attain large jumps in bit and drill rig productivity through bit and rig design, when drilling in these specific situations. In other drilling situations, these large jumps in productivity have been easily attained.

Jan 1, 1998

By M. L. Skow

Large tonnages of the manganese ores found in Aroostook County, Maine, are refractory to conventional mineral-dressing techniques and to the common chemical- extraction procedures. The Maple Mountain-Hovey Mountain ores are typical of this type. Because the most promising method of recovering the manganese from these ores has been a chloridizing roast in which the ground ore is in contact with gaseous hydrogen chloride, preliminary batch tests were made with a fluidized bed. On the basis of these tests, it was concluded that fluidization, with careful control of operating conditions, could be employed for this cloridization and warrants further study. Selective volatilization of the iron at 600° C. was unsuccessful. An operating temperature of approximately 950° C. was necessary for a practicable rate of volatilization of manganese chloride. Hydrogen chloride contents of 10 to 100 percent of the fluidized gas gave essentially equivalent manganese recoveries with an 80- minute retention time, For shorter periods reaction was more complete with the higher hydrogen chloride concentrations. At the 80-minute retention period the lower hydrogen chloride concentrations volatilized somewhat less iron and also improved the physical operation of the process. Fluidization gave results superior to comparable tests on chloridization in a fixed bed.

Jan 1, 1956

By B. M. Nyombolo

Mintek has been involved in the development of bioleach technology for many years, initially for refractory gold extraction, and more recently also for base metals extraction. Mintek, in collaboration with its Australian technology partner (BacTech), is the technology provider for the Beaconsfield refractory gold bioleach plant. At present Mintek, BacTech and Peñoles are constructing a demonstration bioleach plant for copper-zinc concentrate treatment. Bioleach liquors produced in all applications have to be neutralized. In the copper-zinc case, neutralization is required for bleeding iron from the circuit and for adjusting the pH value ahead of solvent extraction. In the refractory gold bioleach circuit, neutralization is required for producing a stable iron-arsenic residue. Some of the challenges encountered in each of these neutralization applications are discussed, and examples of results obtained are presented.

Jan 1, 2000

"INTRODUCTION AND ACKNOWLEDGMENTSAt the request of the lessees, the Pearl tract was examined in February 1946, by Otto Ruhl, an engineer of the Bureau of Mines. From the evidence of old drill logs and from the few available records of mining operations on the Pearl and the adjoining Trussel (Big Tom) tract, it appeared that a relatively small churn-drilling program might develop enough lead-since ore to justify resumption of mining. In March 1946, funds were allotted for churn drilling, and the work was begun the following month. Ten holes totaling 1,933 feet were completed before the close of the project in August 1946. The work was under the general supervision of C. H. Johnson, chief, Rolla Division, Mining Branch, and under the direct supervision of the Bureau project engineers. 3/In its program of investigation of mineral deposits, the Bureau of Mines has as its primary objective the more effective utilization of our mineral resources to the end that they make the greatest possible contribution to our national security and economy, It is the,of the Bureau to publish the facts development by each project as soon as possible after its conclusion. The Mining Branch, Lowell B. Moon, chief, makes preliminary examinations and conducts investigation of mineral deposits. The Metallurgical Branch, O. C. Ralston, chief, participates in this program by making beneficiation tests and analyses. In the present project, no metallurgical tests were made, and for the sake of speed the samples taken were analyzed by a local commercial assayer. 4/"

Jul 1, 1947

By R. M. Whyte

The Konkola Deep Mining Project (KDMP) seeks to exploit the deep level potential of the Konkola Deeps orebody, producing high grade copper concentrates for treatment at the Nkana Smelter and Refinery. As an alternative to smelting, Konkola Copper Mines (KCM) has examined a processing route involving pressure leaching of the Konkola concentrates at Nchanga, with the leach liquor being treated by solvent extraction and electrowinning to produce high purity copper cathode. The solvent extraction circuit would be operated to achieve a high ?delta? copper, thereby providing a strong acid raffinate which can be used in the existing Tailings Leach Plant (TLP) to treat Nchanga oxide copper materials. The main focus of the hydrometallurgical option is to capitalize upon the synergy that exists between the treatment of sulphide copper concentrates (acid producing) and oxide copper ores (acid consuming). The paper discusses the key features of a comprehensive piloting campaign carried out at Anglo American Research Laboratories, which involved the co-treatment of Konkola copper concentrates and Chingola refractory ore in a fully integrated pilot plant circuit.

Jan 1, 2001

By Michael D. McGill, Jeff Freadrich

There are many factors which affect the productivity of a front end loader. One of the most obvious is the characteristics of the material being mined. Characteristics such as size distribution, swell factor or heave, and material hardness / abrasiveness will all effect the efficiency of the mucking cycle. The focus of this paper is to look specifically at the size distribution of blasted material, and quantify the effects on loader productivity.

Jan 1, 1994

By Camilo I. Morales

At present, many open pit mines are designed to operate and feed a processing plant with ore characteristics that were defined in the design of the mining business, which are not necessarily the same as those found during the operation. This is the case of Spence Mine, whose design was conceived considering the extraction of primary iron sulphides, however, with the extraction of such minerals, it was necessary to mine and process minerals with secondary enrichment. Then it is necessary to work with a greater selectivity degree in the operation, however the capacities of the mine and operational resources were not designed for this. Thus, the changes in the general conditions of the operation should be considered as a series of geometallurgical restrictions to achieve production schedules. The above facts impacts directly in the short-term planning, whose task is to achieve the goals proposed in productive long-term planning because the company does not have the tools necessary to plan with the degree of selectivity required, so it should be done by hand, discretizating and scheduling the production polygons. Naturally, this manual process in the short term planning deviate sharply from the areas in operation, opening new fronts and benches that result in a significant increase in costs and a loss of the value of the mineral resource to miss the exploitation sequence. The research presented in this paper is related to the development of a mathematical programming model to support the short-term planning, so as to integrate the challenge of selective mining with geometallurgy restrictions, to provide the planner a guide to construction of the polygon of exploitation, guiding the fines production to achieve the goals of the proposed production plan.

Oct 1, 2009

By Frank E. Cash

As a part of its safety program the United States Bureau of Mines has fostered the development, use, and improvement of portable electric mine lamps. Although there is still need for better illumination in mines and the replacement of open lights has been slow, improvement in electric cap lamps and increase in their use indicate one phase of recent progress toward safer and more efficient mining This report is the result of a recent survey of electric-lamp installations in the Alabama mining; district; it shows the misuse, increase in use, and relation to certain classes of accidents of these installations.

Jan 1, 1935

By J. W. Neale

Mintek and BacTech have joined forces to provide the metallurgical industry with bacterial-oxidation processes for the treatment of sulphide ores. The processes are aimed at both refractory gold-bearing and base-metal concentrates. Previously, BacTech had commercially implemented the refractory gold process at the Youanmi Gold Mine in Western Australia. More recently, the process has been incorporated in the Sulphide Treatment Plant at the Beaconsfield Gold Mine in Tasmania, Australia. In addition, Mintek and BacTech have recently signed an agreement with the Laizhou Gold Metallurgy Plant in China?s Shandong Province, which will see the third commercial realization of the technology for refractory gold. Development of the base-metal technology is the subject of several papers in the proceedings of this colloquium. The implementation of the refractory gold technology at Beaconsfield is discussed in detail. Some important aspects that are covered include: ?Test work, and the choice of bacterial culture ?Process design choices, and the advantages of the Mintek-BacTech process ?Inoculum build-up ?Plant commissioning ?Plant performance. Besides the Laizhou project, Mintek and BacTech are currently investigating several other commercial prospects for the technology. These include the use of the technology for a gold-copper deposit, where the production of both gold and copper is envisaged.

Jan 1, 2000

By G J. Fleming

The Miwah prospect lies on the dilational 070¦ trending Miwah Lineament near its intersection with northerly oriented fractures within Pliocene volcanic rocks exposed between a NW trending segment of the dextral transcurrent Sumatra Fault, and the more northerly trending Samalanga-Sipopok Fault to the east. These faults reflect the continued interaction between stresses from the India-Australia plate located to the southwest, and spreading within theAndaman Sea to the north of Sumatra. A system of deep seated faults is believed to have facilitated emplacement of post-Miocene magmas and Quaternary volcanic centres at shallow crustal levels throughout northern Sumatra. Miwah mineralisation is associated with variably dipping structurally and lithologically controlled argillic and advanced argillic alteration. An oxidised supergene leached zone and a recent, thin, unaltered tuff blanket partly overlie the mineralisation. Mineralised zones are commonly brecciated and veined, and display quartz, quartz-alunite, quartz-alunite¦pyrophyllite¦kaolinite replacement assemblages, surrounded by more weakly mineralised, often vugghy quartzalunite¦pyrophyllite¦kaolinite advanced argillic, and argillic zones of quartz-kaolinite, quartz¦pyrophyllite¦kaolinite and smectite-illite-quartz. Propylitic assemblages are marginal to more intensely altered zones. Hypogene copper mineralisation is typified by enargite, luzonite, and covellite. The host mineral to gold is uncertain at present. Rare barite, native sulfur, and ?telluride also occur. Bornite and chalcopyrite have been observed in transported altered rocks in faults. Generally the mineralisation is anomalous in precious metals, locally enriched in Cu, erratic in Pb, and depleted in Zn, with a good correlation between Cu-As-Ag.

Jan 1, 1995

By Y. Shu, A. R. Laplante

"A laboratory Knelson Concentrator (LKC), 7.5 cm in diameter, was used to study the performance of a similar unit at plant scale, 76 cm in diameter, This paper reports on sampling and assaying procedures and problems, and discusses the performance of the plant unit.The sampling procedure was based on the extraction of large samples, 5-15 kg, and their complete processing with a LKC, to characterize size-by-size performance. The procedure yielded reliable estimates of overall gold assays, after blatant assaying errors were corrected. The plant centrifugal unit concentrate was sampled in situ, which yielded very erratic grades, with a large overall negative bias. Due to the very heterogeneous nature of the concentrate, which can be linked to flow patterns in the riffles of the unit, it is recommended that for future testwork, the concentrate be recovered separately, blended and then sampled.The plant centrifugal separator, when operated at a feed rate of 25 t/h, yielded total and free gold recoveries of 41 % and 62%, respectively. This is much lower than previously reported data, and suggest that at 25 t/h, the unit is overloaded. However, recovery did not decrease with time over a loading cycle of 2 hours, which suggests that present loading cycles, generally 1 hour, can be significantly increased. INTRODUCTIONThe study of gold gravity circuits is plagued with the statistical problem of determining the behaviour of particles occurring with a very low frequency. This problem becomes particularly acute with increasing particle size. For example, considering the average weight of a gold flake in the 840-1200 µm (20/28 mesh) to be about 5 mg (Banisi et al, 1991), a reasonably high grade feed of 10 git would require, for a relative error (standard deviation) of 10% on grade, 100 particles, that is 0.5 g of gold, or 50 kg of 840-1200 µm material (a Poisson distribution is assumed). Gy's formula, for the same data, yields a weight of 33 kg, with a shape factor of 0.1 and a size distribution factor of 0.5. Both results are comparable; to obtain the suggested weight of material, a stream containing 5% weight in the 840-1200 µm would require 1 tonne samples (of unsized material). The problem rapidly disappears with decreasing particle size. Still with Banisi et al's data, a gold flake in the 300-420 µm range averages 0.5 mg in weight; the same 10% error on grade corresponds to a weight of 5 kg. Gy's formula for the same size distribution and particle shape factors as above predicts a required mass of 1.4 kg. This would correspond to an unsized sample weight of 10 kg with 14% weight in the 300-420 µm, for example."

Jan 1, 1992

By Janice K. Means

The purpose of this paper is to provide the seminar attendee with: information on pipeline construction, operation and standards to better equip him (or her) to analyze the ultimate effect of blasting stress on pipelines; an introduction to the analysis of blasting effects to pipelines using the American Gas Association analysis method; and; supplemental sources useful in the analysis of blasting effects to steel pipelines, and, in particular, on natural gas pipelines.

Jan 1, 1992

Jan 1, 1967

By Daniel Saint Don, Jacques Dumouchel

QIT Madagascar Minerals (QMM)’s heavy mineral sand deposit located near the Village of Fort Dauphin, Madagascar was recently drilled using Boart Longyear Company’s Mini-Sonic drill. Continuous sand core samples were obtained to a depth of up to 30 meters for analysis and compared with the existing drilling data. Results were used as part of a validation process of the resource estimate, based on approximately 1,500 exploration holes drilled to date.

Jan 1, 2005

Splashing and wave formation has been studied experimentally by using one-seventh water model of CLU (Creusot-Loire Uddeholm) reactor with two different tuyere configurations by using paraffin and water as simulated slag and simulated metal respectively. Experimental results have been discussed in terms of total splash volume, relative slag volume in splash (dispersed-slag phase holdup in splash), wave frequency and wave amplitude with respect to gas injection rate and tuyere configuration at bath heights between 0.25m and 0.38m. Gas flow rates ranged from 0.00599m3/s to 0.01312 m3/s. The results of splash measurements showed that splash volume increased with increasing gas flow rate and decreasing bath heights for both tuyere arrangements. However, off-centre configuration resulted in relatively higher amounts of splash. The slag volume in splash (Dph in splash) was also found to increase with decreasing bath heights and increasing gas injection rates. The high speed photography revealed that the frequency and wave amplitude increased with gas injection rate. The experimental results also showed that the frequency and vertical displacement of the rotating wave increased when the tuyere orientation became off-centered. This might be used to explain why off-center configuration resulted in generating higher splash volumes than the center configuration.

Jan 1, 2004

By M. D. Mwema

Copper oxide ores deposits in the Katanga province of the Democratic Republic of Congo (DRC) contain at variable level cobalt oxide minerals. In contrast to copper oxide minerals which readily dissolve in the sulphuric acid solution, the cobalt oxide bearings are difficult to dissolve, especially if cobalt is present in the third oxidation state (Co2O3). This species become soluble after reduction of Co+3in Co+2. In practice, the use of reducing agent is therefore necessary in order to transform the insoluble minerals into soluble cobalt sulphate species. The following reducing agents are currently used at the Shituru plant: ferrous ions, which are present in leach solutions, pulverised copper or sodium meta bisulphite (MBS). Due to the high consumption of reducing agents (0,8 t MBS/t of solubilized Co; 1,2 t Cu/t-Co), cobalt production is expensive. The use of sulphur dioxide as reducing agent was then investigated in order to reduce operating cost. This reagent also presents the advantage of sulphuric acid production during the leaching process. It has been added in the leaching vessel (tank). From the laboratory and industrial tests, selective leaching of cobalt (78%) has been performed. The cobalt leaching kinetic depend on sulphur dioxide dosage. Dissolution of copper, iron and manganese remained very low. No emanation of SO2 gas was observed during the process.

Jan 1, 2002