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By Boris Chacón

Durante el desarrollo cotidiano de una operación minera, se obtienen diversos tipos de información como: muestreo, perforación diamantina, etc. las cuales, se originan en base a observaciones de campo. En ese sentido, es vital desarrollar procedimientos adecuados que permitan administrar la información compilada. Por ello, el presente trabajo señala la aplicación de la administración de datos geológicos en la empresa minera Iscaycruz. La información de datos geológicos se puede administrar en formatos tipo gráfico o en bases de datos, por lo cual se requiere que la estructura de almacenamiento de dichos formatos contenga parámetros previamente analizados. Asimismo, es necesario que el equipo de trabajo organize la base de datos, a través de los objetivos y metas trazadas, así como de la verificación y análisis de los resultados, para mantener actualizada la información.

Aug 25, 2002

By Dyson N. F

Mixed cobalt-nickel sulphides precipitated from ammoniacal process liquors derived from nickel sulphide concentrates, mattes, and reduced nickeliferous laterites have been characterized.The mixed sulphides are prone to oxidation on standing and are rapidly leached under relatively mild conditions. The kinetics of the leaching reactions are controlled principally by temperature and oxygen partial pressure. Although the samples have different CO:Ni ratios and have undergone varying degrees of oxidation, there is little difference in their leaching behaviour. The results suggest that a single plant would be able to process mixed sulphides of varying composition. Any copper and zinc present in the mixed sulphides as impurities also go into solution and must be removed prior to recovery of the cobalt and nickel in metallic form.

Jan 1, 1981

By Ali Porbaha

In today's fast-track construction environment, owners are searching for non-conventional technologies to build their projects faster and safer while maintaining traffic flow during construction. To that end designers and contractors are providing solutions that incorporate many unique features to expedite construction processes. In addition to timely delivery of the finished highway products, there is an increasing interest in making the initial investment in applying innovative technologies and thereby minimizing costly maintenance of highway projects. Accordingly, the aim of this paper (along with the accompanying paper) is to examine innovative technologies, developed mostly in Europe, that accelerate construction of highway, runway and railway embankment foundations. For each technology, a basic concept, installation technique(s), and design considerations are discussed, along with the case history of a real-world project. The Geotextile Encased Columns (GEC), AuGeo, and Continuous Flight Auger (CFA) are presented in Part I. Deep Mixing (DM), Mass stabilization, Cut-Mix-Injection (FMI), and Combined soil Stabilization with Vertical columns (CSV) technologies are discussed in Part II.

Jan 1, 2002

By R. M. Waterstrat

X-ray diffraction and metallographic examination of binary Mn-rich alloys with Ti revealed the presence of intermediate phases in this system. A binary R phase has been identified and also a phase having an a-Mn type structure. The X-ray pattern of the phase TiMn3 is presented and a tentative phase diagram for the Mn-rich portion of this binary system has been constndcted. MANGANESE-rich alloys with titanium have been subjected to thermal analysis at temperatures down to 1100°C by Hellawell and Hume-Rothery.1 Their results indicate the existence of an intermediate phase TiMn3 in this binary system. This phase appears to coexist with the Laves phase TiMn2, and with terminal solid solutions based on the allotropes of manganese, at least down to 1100°C. The above investigators did not attempt to determine the crystal structure of this phase, however. Since, by analogy to the binary systems Mn-V and Mn-Cr3 one might expect to find a phase in this region of the diagram, it seemed desirable to obtain X-ray diffraction patterns of alloys in the concentration range in question, in order to ascertain whether the sigma phase or related structures occur. EXPERIMENTAL PROCEDURES Alloys were prepared by arc-melting electrolytic manganese and iodide titanium in a water-cooled copper crucible under a helium atmosphere. Excess manganese was added to each melt in order to allow for losses incurred during melting. The alloys were then wrapped in molybdenum foil and sealed in evacuated quartz tubes for annealing at various temperatures, as shown in Table I, followed by quenching in cold water. Although the inside of the tubes showed evidence for some loss of manganese from the specimen during annealing, there was no evidence of any reaction between the specimen and either the molybdenum foil or the quartz tube at these temperatures. It was later found that the manganese loss was considerably reduced by annealing these alloys in sealed quartz tubes containing one atmosphere of purified argon. As an added precaution the surface of each specimen was ground off before crushing the alloys to -270 mesh powder, using a hardened steel mortar and pestle. X-ray powder patterns were obtained using either FeKa or CrKa radiation in an asymmetrical focusing camera, which gave excellent dispersion of the closely spaced lines. Pictures were also obtained using a Debye camera of 5-cm radius which provided data in the angular region not covered by the focusing camera. The alloy specimens were polished and examined metallographically, using an etchant consisting of 60 pct glycerine, 20 pct nitric acid, and 20 pct hydrofluoric acid. The 10-g buttons were in each case broken in half and found to be well-melted and free of any gross segregation. One half of certain alloy buttons was submitted to chemical analysis in the "as-cast" condition. No appreciable change in composition seemed to occur during annealing . RESULTS The X-ray pattern of alloy Ti1.17Mn0.83 was found to agree well with that of the ternary R phase which was first found in the Mo-Cr-Co system,' and re-

Jan 1, 1962

By A. J. Wainwright

The Coffee Creek lode gold discoveries are located in the White Gold district (Dawson Range), west-central Yukon, 130 km south of Dawson City and 30 km south of the Golden Saddle gold deposit (Figure 1). Extensive structurally-controlled gold mineralization has been discovered during the 2010 and 2011 exploration drilling campaigns, highlighting this part of the Dawson Range as a significant emerging gold district. [ ] In this contribution we review the geological framework and describe the mineralization styles and metal signatures observed to date on the Coffee project. The main Coffee area is underlain by a 15 km by 4 km geochemical footprint, characterized by discrete linear gold-in-soil anomalies that correspond to various mineralized corridors. Of several mineralized areas tested in the past two drill seasons by diamond core and reverse-circulation (RC) drilling, we focus on the Supremo, Double Double, Latte and Kona zones; areas with the most information obtained from drilling thus far (Table 1; Figure 2).

Jan 1, 2012

By B. Broms

The "Bawang Pile" (in english "onion" pile) described in the article consists of a cased concrete shaft and an expanded base. The steel casing is first driven by an internal drop hammer and then the base is formed in-situ by the raming the concrete at the bottom of the slitted casing. This new type of pile can be used for underpining (small head room) of buildings and as foundation for transmission towers or lamp posts. Full-scale load tests in compression and in tension on the Bawang pile and on steel pipe piles demonstrate the dramatic increase of the ultimate capacity due to the expanded base. Guidelines for the design of such piles are proposed.

Jan 1, 2010

By Pullen G, Rose M

Continuing Professional Development (CPD) is not just a catch-cry. It is an essential component of every-day life in many professions, including accountancy, law and public administration. Without realising it, many other professions are undertaking CPD activities in an un-structured way, including mining, metallurgy and geology. Examples include Annual and technical conferences of The Institute, Branch-level technical meetings and in-company training and development programmes and technical exchanges. Whilst approaches to date have undoubtedly helped keep the Australian mining industry at the forefront of mining technology, one cannot presume that technological development will stand still. To meet this challenge, human resource development must keep pace, not only to optimize utilization of technological developments, but more importantly to develop firm bases from which new products, processes and technologies can be developed within Australia.

Jan 1, 1989

By P M. Ashley, M Muller

Massive sulphide ZnPbCuAg deposits in the Halls Peak district of north-eastern NSW are of the submarine volcanogenic type. They occur as a number of small lenses enclosed in shale and epiclastic rocks, in association with felsic volcanics of early Permian age. The deposits crop out in steep terrain near the eastern edge of the New England plateau. Local relief of 700 m and slopes up to 50¦, coupled with an average annual rainfall of about 1000 mm has led to local severe land sliding in previously mined areas. Mining from the 1890s to the 1960s has also resulted in unconstrained drainage of heavy metal-bearing acid waters and physical dispersion of finer grained metalliferous sediments into the Chandler River. Waters emanating from the main landslide area, from underground workings and draining scattered unconfined stockpiles of massive sulphide ore have pH values of 3 to 4 and contain elevated contents of Zn, Cu, Pb, Cd and Fe. Chemical mobility of heavy metals into streams occurs under low pH conditions with Zn exhibiting the greatest dispersion. Increasing pH conditions downstream cause precipitation of Fe phases and coprecipitation of heavy metals. Physical dispersion of secondary metal-bearing minerals into the surrounding creeks results in wt% levels of Cu, Pb and Zn in the stream sediments thereby exceeding the regional background values by one to three orders of magnitude. Areas disturbed by mining are characterised by lack of vegetation, biomagnification of heavy metals into algae and lower plants, and partial recolonisation by metal-tolerant grass species (Snow Grass, Poa sieberana; Blady Grass, Lomandra longifolia). Rehabilitation measures will have to include landslide stabilisation, impervious sealing or removal of sulphidic materials, import of topsoil and revegetation by metal-tolerant, slow-growing native grass and shrub species.

Jan 1, 1995

By A. McLean, M. Iwase, K. Wakimoto, K. Katogi, Y. Kikuchi

One of the greatest obstacles to the application of physical chemistry principles to the elucidation of slag-metal reactions is a lack of knowledge of activities of the reacting species. To a large extent, oxygen potential of the slag phase governs iron and steelmaking practice. Without oxygen control by means of appropriate sensors, the behaviour of the other elements cannot be managed. In this paper, measurements of the FeO activity with various types of electrochemical FeO sensors will be described together with examples of their applications for improved strategies toward better practice for ladle metallurgy and sulphur and manganese distributions between slag and metal phases during steelmaking. Measurements of FeO activity have also been made in order to improve dephosphorization reactions. This type of work has led to significant reduction in volume of slag generated within the steelmaking vessel, which in turn has important implications for refractory wear, metal yield, alloy recovery and improved productivity. Finally, an on-line sensor is described that permits the oxygen potential to be determined for both the metal phase and the slag phase during steelmaking in the BOF.

Jan 1, 2004

By R. G. Horvath

The Statnamic loading test is a new and innovative method for testing deep foundations. The test is relatively inexpensive, quick, easily mobilized, provides for direct measurement of applied load and corresponding displacement, and is capable of very high loading capacities. The long duration of the applied loading, as compared to a dynamic loading test, allows for a straightforward determination of the static behaviour of the foundation tested. A new method of analysis of the Statnamic loading test, the Equilibrium Point Method, is presented. A description is given of the pile-soil model and a demonstration of how the static load-displacement behaviour of deep foundations may be predicted from the Statnamic loading test data. The Equilibrium Point Method of analysis is applied to three types of deep foundations in soils which respond differently to fast loading rates. These case histories, from Canada and the United States, include data from static loading tests for direct comparison, and demonstrate the ability of the Equilibrium Point Method to predict static behaviour of the deep foundations.

Jan 1, 1993

By Stephen A. Gasiorowski, Frank J. Hrach, James D. Bittner

Separation Technologies, LLC (ST) has developed a processing system based on triboelectric charging and electrostatic separation that provides the mineral processing industry a means to beneficiate fine materials with an entirely dry technology. The environmentally friendly process can eliminate wet processing and required drying of the final material. The process requires little if any pre-treatment of the material other than grinding and operates at high capacity - up to 40 tonnes per hour by a compact machine. Energy consumption is low, approximately 1 kWh/tonne of material processed. Since the only potential emission of the process is dust, permitting is typically relatively easy. In contrast to the other available electrostatic separation processes that are typically limited to particles greater than 75 µm in size, the ST belt separator is ideally suited for separation of very fine (<1 µm) to moderately coarse (500 µm) materials with very high throughputs. The triboelectric particle charging is effective for a wide range of materials and only requires particle-particle contact. The small gap, high electric field, counter-current flow, vigorous particle-particle agitation and self-cleaning action of the belt on the electrodes are the critical features of the ST separator. The high efficiency multi-stage separation through charging / recharging and internal recycle results in far superior separations and is effective on fine materials that cannot be separated at all by the conventional electrostatic techniques. Since 1995, this triboelectric process has been extensively used for the beneficiation of coal fly ash with eighteen separators in place and over 100 machine-years of operation at locations in North America and Europe. The technology has been also successfully applied to the beneficiation of a variety of minerals including calcium carbonates, talc, and potash.

Jan 1, 2012

By Thomas P. Mucho, Dennis R. Dolinar, Anthony T. Iannacchione

The Chestnut Ridge Anticline is a prominent structure in southwestern Pennsylvania, USA. This structure has brought two economically valuable limestone formations to the surface, where they are easily accessible to room-and-pillar mining. Nine active crushed stone quarries, an underground research facility, and one industrial facility currently operate along the linear trend that represents the axis of the anticline. The National Institute for Occupational Safety and Health (NIOSH) has identified significant variation in levels of horizontal stress within relatively short distances at shallow overburdens along the anticline. At one quarry, the horizontal stress is high enough to shear strata with a modulus of approximately 77 Gpa. Conversely, zones of extension were observed in parts of another quarry, indicating very low horizontal stress conditions. This study found that high levels of horizontal stress are to be expected in this very stiff rock formation and that local geologic and topographic structures are capable of altering the magnitude and possibly the orientation of the horizontal stress field.

Calculations of the temperatures of metal, coke, and gas at any level in the cupola furn~ce can be carried out by means of heat balances, using data obtained from experiments with an 18 in. experimental cupola. The results can, to a certain extent, be verified by means of heat transfer calculations.The curves thus obtained, showing the variation of temperature with height in the cupola, provide a valuable picture of the heat transfer processes in a shaft &apos;furnace.INTRODUCTIONThe Brown Coal Research Laboratory, of the University of Melbourne, has been engaged in recent years on a programme of iron-melting tests in an experimental cupola furnace.Although the ultimate aim of this work is to develop brown coal char as a cupola fuel, most of the experimental work so far has been with conventional coke. The testing programme was designed to provide information on the effect of variables such as blast rate, metal-coke ratio, and coke size on the overall melting process, e.g. melting rate, temperature of metal tapped, and stack gas composition.However, in many cases data were obtained on conditions inside the furnace by measuring temperatures and gas compositions. The aim of the work described in this paper was to qevelop a method for using this data to obtain information on the processes taking place in the cupola.Very little research has been done on the combustion of fuels in shaft furnaces. Early work on this subject, as well as the initial stages of the Brown Coal Research Laboratory&apos;s programme, has been discussed by Evans (1959). The use of probes for obtaining information on conditions in the interior of a shaft furnace was pioneered by Belden (1913)...

Jan 1, 1963

By Tassos Grammatikopoulos, Sarah Prout, William Mercer, C. Gunning

"The Nechalacho rare metal deposit is located in NWT, Canada. Avalon Rare Metals Inc. is now evaluating processing techniques for recovery of REE to be used in the industry. QEMSCANTM analysis coupled with whole rock, REE, Zr and Nb, and electron microprobe analyses were utilized to identify and quantify the mineralogy of the deposit, and define the REE distribution among minerals. QEMSCANTM mineralogy was performed on fifty intact drill samples using EXPLOMINTM that provided textural information for the mineralization; crushed samples were used to determine the variability of the ore and define REE domains, and composite samples to determine the liberation and association of the REE minerals. The sample matrix predominantly consists of biotite, feldspars, quartz, muscovite/clays, minor chlorite and amphibole, magnetite and hematite and carbonates. REE include in decreasing order of abundance allanite (3.6%), monazite (1.5%), synchysite (0.9%), columbite (0.9%), fergusonite (0.6%), bastnaesite (0.4%), and zircon 11.0%. The majority of the HREE are carried by fergusonite and zircon, and the LREE by monazite, allanite, synchysite and bastnaesite. QEMSCANTM mineralogical data is extremely valuable in assessing the mineralogy of the ore. The data have been implemented in defining the mineralogy of the ore body, support metallurgical test work, predict recoveries and grades, and finally calculate reserves of the deposit.INTRODUCTIONAvalon is in the unique position of owning and developing one of the world’s largest rare earth deposits in the Northwest Territories of Canada.The term Rare Earth Elements (REE) is used to describe the 15 lanthanide elements or metals and, more recently, the metals yttrium and scandium, which display similar physical and chemical properties. REE are not particularly rare and have a similar abundance in the earth’s crust to nickel, tin or tungsten. Unlike these better known metals however, the rare earths have little tendency to become concentrated into commercial ore deposits. When they do become concentrated, deposits of REEs usually display enrichment in one of two groups. The most commonly occurring deposits of REEs contain a sub-group of elements referred to as the “light rare earth elements” (LREEs), which include lanthanum, cerium, praseodymium, neodymium, and samarium. Less commonly, deposits of REEs contain the much more valuable sub-group of elements referred to as the “heavy rare earth elements” (HREEs), which include europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium and lutetium. Yttrium and scandium most commonly occur in association with this second HREE sub-group. Generally, LREEs are produced from the mineral bastnaesite, and the HREEs have been produced from the minerals xenotime and monazite. LREEs continue to be produced from bastnaesite, however in the 1980s, China started production of HREEs from unique laterite clay deposits. China now produces approximately 95% of the world’s rare earths."

Jan 1, 2011

By Lever R. R

The paper discusses assay methods generally used when prospecting for gold, and also the applicability of various chemical methods, it describes a new paper chromatographic technique.for making fairly rapid semi-quantitative assays for very fine gold. Testing of the method in field work shows that this simple method could have applications in geologic work, in prospecting and in certain routine mine sampling work. It is not yet a method that can be used to detect anomalies in traces of gold dispersed around an orebody, as is general practice in geochemical prospecting.INTRODUCTIONAccording to the English economist Harrod (1958), &quot;the acute shortage of gold in the world-because currency value has not been adjusted in line with the fall in the goods value of the various currencies-has been a familiar fact for some time now&quot;. Harrod calculates that a rise in the price of gold to double its present value is necessary to rectify this condition, and that, if this rise were to take place, increase in production and reduction in private hoarding might well bring annual accretion to world stocks from the presentaverage of about $464 million to a figure close to the $2,000 million that would probably eiiminate these shortages.Any increase in the price of gold is bound to lead to a great increase in prospecting at working mines, in abandoned areas and possibly in untouched country. Prospecting, techniques for base metal orebodies have improved greatly in the last thirty years; but methods available to detect gold occurring without accessory metals have not received the same attention. With this in mind a paper chromatographic method of assaying for gold has been developed by Lever (1958). In the field this semi-quantitative method has proved...

Jan 1, 1959

By R. R. Sayers

"The number of investigations reported during the past year indicates that control of the health hazard due to abnormal air conditions is still a matter of serious consideration in the mining, metallurgical, and allied industries.Australia. - In an investigation into the health and working conditions of employees in the mining industry of Tasmania and Victoria3, it was found that although pulmonary tuberculosis may occur early in life, silicosis is e disease of slow evolution and does not appear frequently under the ace of 40. A period of at least ten years in the industry was found necessary to produce silicosis, and in no case was the disease found in those who had not worked underground. A very high incidence of silicosis was found in all fields among those who had worked underground 20 years and longer. There was some evidence that silicosis complicated by tuberculosis may occur earlier than uncomplicated silicosis.England. - In a paper presented before the Section on Occupational Diseases of the British Medical Association, Dr. E. L. Middleton, the medical inspector of factories, called attention4 to the occurrence of silicosis in various industries throughout the country.punitive on some quite harmless industries. Thus Middleton says: ""Where the amount of dust is small the action of the phagocytes is likely to be effective, but where it is great . . ."" What dosage is indicated by ""small"" and ""great"" in this connexion? If the meaning of ""small"" were known, would it be correct to go on to say, as he does, ""each successive dose of silica produces a summation of effects""? Then, again, would it be fair to say ""a comparatively brief period of exposure may be the only determining factor""? What, in minutes, hours, or days per week, per month,' or year, is intended by ""a comparatively brief period""? ""Intermittency of the process"" is another expression used in summing up the reasons for and against a standardization of air purity by a gravimetric process or enumeration of the particles; the arguments against such a standardization are, by Middleton, considered strong, but they are by no means convincing to us. A standard has been accepted in respect of the amount of lead in milligrams per 10 cubic metres of air; Dr. Ronald Lane showed in another paper read that adherence to this makes the occurrence of poisoning highly improbable. Mavrogordato has placed on record figures of silica dust at different stages of the improvements in the workings of the Rand mines, and such a control is in constant operation in them today.We emphasize these points because apparently the Government has taken the unusual course of legislating first and postponing inquiry to a later date, as in the ""Various Industries (Silicosis) Scheme, 1939."" The insurance companies also have a considerable interest in the matter of compensation for the silicosis risk. Where exposure - as in the refractories industries, the grinding industries, sandstone industry, and pottery industry - is day in and day out, they rightly demand a premium far higher than for any other disease scheduled under the Workmen's Compensation Act - 5 per cent on the wages bill. row every industrial employer, such as the paint and varnish manufacturer, who has a sack of crushed silica in his store .room, from which he extracts once a week enough to make a paste With spirit and add to his other ingredients in order to give them the necessary ""bite,"" becomes involved, and may have to abandon the use of the material or pay 8 per cent on his wages bill for an absolutely negligible risk.. For meting out justice standardization seems urgently called for."

Feb 1, 1930

By W. M. Pytel

The applicability of the beam theory in analysis of roof- pillar-weak floor interaction in partial extraction room-and-pillar mining is presented. The mine structure is modeled as an equivalent multi-indeterminate overburden elastic beam supported by elasto-plastic pillars; resting on a viscoelastic layer of immediate weak floor strata underlain by a competent rock mass. The developed analytical model was initially utilized to conduct sensitivity analyses of different variables affecting the mining system, such as the deformability of coal and weak floor strata, thickness of weak floor strata, number of pillars in a panel, width of pillars, width of panel etc. These analyses were then extended to three overburden strata - coal pillar - floor strata lithologies typical of active coal mining areas in Illinois.

Jan 1, 1989

By Gavin Ritson, Chris Ward

"The oil sands industry is still fairly young with the first viable oil sand operation having been started in Alberta in 1960. Since then numerous modifications and improvements have been tried and implemented. The current process makes use of high velocity pumping of oil sands slurry with hot water (hydrotransport) to achieve separation of bitumen from the sand.A number of the oil sands processes have been adapted from unit operations that are used in mineral processing, such as crushing, screening, flotation, cycloning and thickening. This paper outlines a typical oil sands process flowsheet and investigates the differences and similarities in technologies and costs to other mineral processing industries. It also considers the very large throughputs required, and presents some of the difficulties and challenges currently faced by the industry as a result of high demand for oil and environmental pressures.INTRODUCTIONOil sands (also known as tar sands) deposits are found throughout the world. The Athabasca Oil Sands deposit in Aberta is the largest of these. Oil sands consist of a mixture of crude bitumen (a semi-solid form of crude oil), silica sand, clay minerals, and water. The Athabasca, Peace River and Cold Lake deposits cover 141,000 square kilometers and contain about 1.7 trillion barrels (270×109 m3) of bitumen in-place, comparable in magnitude to the world's total proven reserves of conventional oil"

Jan 1, 2009

By E Rojas, C Pardo

The exploitation of primary ores using cave mining caused new challenges at the El Teniente mine that required changes to a number of conventional cave mining practices. For example, in the 1970s and 1980s, panel caving was introduced to manage certain geotechnical and operational conditions. Today, El Teniente mine is facing new challenges associated with deep cave mining and establishing its New Mine Level (NML) project, which is located 240 m below the Esmeralda operating cave.The engineering and development phases for this new project have been largely based on experience and lessons learned throughout the history of primary ore exploitation at El Teniente mine, particularly knowledge about seismicity control, the management of collapses and operational practices. For example, previous experience demonstrated that seismicity could be managed by preconditioning using large-scale hydraulic fracturing (HF). HF has been systematically applied in the column of ore above the undercut planned for the NML project and below the production or extraction level, where the main ventilation and haulage infrastructure are to be located.This paper discusses how this has been achieved and is based on previous experience of preconditioning using HF, which has been applied in the selection and management of exploitation techniques and associated planning strategies and design parameters for the NML project.CITATION:Pardo, C and Rojas, E, 2016. Selection of exploitation method based on the experience of hydraulic fracture techniques at the El Teniente Mine, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 97–104 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2016

By Daniel T. Brian, O&apos

Exploration targets and results in the mining industry are commonly summarized in terms of tonnage and grade. Business appraisals require, as additional information, the expected profit or loss implied by the physical summay. The early incorporation of knowledge gained through financial analysis computations can provide a means for economically resolving many common exploration and development problems. Examples of such applications from the activities of exploration planning, reconnaissance, land acquisition, and development planning are presented. While prospecting for mineral deposits, geologists are frequently asked what they hope to find or have found. The response is usually descriptive, such as "50 million tons of 1% copper," and the economic implications are deferred until a capital investment decision is required. At that time, a financial analysis integrating the four analysis components is completed. These components are: 1) Tonnage and Average grade above cutoff grade 2) Capital and operating costs 3) Product value 4) Appropriate profit or loss accounting Close examination of these components reveals that there is no intrinsic reason for avoiding financial analyses at earlier stages in exploration, as long as the uncertainty of the estimate is realized. Tonnage and average grades are commonly estimated at early stages in exploration. For this component, the appropriate cutoff is the major uncertainty. Capital and operating costs are difficult to estimate before detailed quantitative information is available, but estimates useful for the types of applications pertinent to earlier exploration stages are possible. Product value estimates may or may not be difficult, depending on the pricing structure of the particular commodity. A simplified accounting procedure usually may be adopted without introducing any significant loss of validity. This paper describe some of the financial analysis applications which are pertinent during mineral exploration and deposit development. These applications lend additional insight during exploration planning, land acquisition, physical exploration, and development. The examples are oriented toward a hypothetical management investment policy which is based on a single criterion, a minimum 15% discounted cash flow rate of return. In reality, managements use multiple criteria. This simplification is convenient for purposes of presentation and does not invalidate the examples. Computers are useful, but not a requirement, for the applications described. The use of computers provides the results on a more timely basis at costs lower than equivalent manual computations. UNDERLYING PRINCIPLES AND ANALYSIS METHODS Data estimates are subject to uncertainty. The analyst may choose to assess this uncertainty by using one of two principles. Each principle has some advantages. The principle most commonly employed is "assumed certainty." Each financial analysis is based on one set of selected data, which may represent the average estimates, minimum expected conditions, etc. The critical data is identified by making successive calculations, varying the values used. Such studies, called sensitivity analyses, isolate the economic effect of various uncertainties, and guide the allocation of future efforts toward improving the overall accuracy of the analysis. A second principle, "assumed risk," examines the interactive effect of the current uncertainties by qualitatively assigning probability distributions to each data element. These probability distributions indicate the currently appraised chance that a given numerical value will prove to be true. The corresponding procedure, risk analysis, consists of processing many individual financial analyses, each analysis being based on randomly selected numerical values from the probabilistic distributions. The result is a numerical presentation of the uncertainty, but care must be exercised in the interpretation of results. The advantage of this procedure is the direct measurement of economic uncertainty caused by the interaction of uncertain estimates. Kennecott Copper Corp. has developed computer systems for accomplishing sensitivity and risk analyses.

Jan 1, 1970