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By Sean E. Armstrong, Deepak Malhotra

Gold extraction from refractory ores as a percentage of total gold production is increasing. The processing technology options for treating difficult-to-process refractory ores are also increasing. The best processing option is dependent on many factors including feed grade and the cause for ore refractoriness. The causes for ore refractoriness are many foldCpreg-rob­bing, encapsulation in pyrite, arsenopyrite or silica, presence of cyanocides, presence of cyanide-insoluble gold compounds, etc.1. The first step in the process development of a refractory gold deposit is to determine the cause for ore refractoriness. The traditional approach of undertaking detailed mineralogical examination of ore types, major and minor mineral constituents and their association does not necessarily provide the metallur­gist all the information needed for characterization of gold-bear­ing ores. For process development programs it is desirable to complement traditional mineralogical methods with diagnostic leach testing, which attempts to quantify the deportation of gold in various mineral matrices. This paper briefly reviews the diagnostic leaching proce­dures and its applications for a wide range of gold-bearing refractory ores, both primary and by-product.

Jan 1, 1996

By S. S. Nadgauda, A. J. Hathaway

Typically, as long as the coal quality is within the specified range, electric utilities have used delivered cost of fuel per million Btu as the primary criteria for qualified coals when making coal-procurement decisions. Such an approach may not fully address the total cost of using different quality coals at a given plant. A practical and easy-to-build model is described for estimating plant-specific utilization costs for coals of different qualities. Examples are included to illustrate the modeling results for plants operated by two utilities. While the model has certain limitations, it does represent an improved method for evaluating coal bids, and, consequently, reducing generation costs.

Jan 1, 1990

By A. Pinches, R. Winby, P. J. van Staden, M. K. Rhodes, P. C. Miller

This paper is a progress report on the commercialization of using bioleaching for base-metal concentrates. The paper focuses on bioleach processes for recovering copper from chalcopyrite and nickel/cobalt from pentlandite/pyrrhotite. Data is discussed from pilot-plant trials in which an overall recovery >95% was obtained for the bioleaching of copper from chalcopyrite. The pilot plant was operated in closed circuit with solvent extraction and electrowinning circuits for final metal recovery. For the bioleaching of nickel and cobalt from pentlandite/pyrrhotite, an overall recovery of 97% was achieved. Precipitation routines were used to produce a final nickel/cobalt product. The pilot plants were capable of treating a few kilograms of concentrate per day. Prominent features in the design of a 1-t/day (1.1-stpd) copper-bioleach demonstration plant for the treatment of chalcopyrite concentrate are discussed. The plant, which is now under design, will be constructed and operated based on the results obtained from the laboratory pilot-plant campaigns. Issues of scale-up for the demonstration plant, together with integration into upstream and downstream processing, are also addressed. Independently derived capital and operating costs are presented for a possible commercial plant. These cost studies indicate the principle economic issues in considering the application of bioleaching to the extraction of base metals. The benefits of bioleaching complex concentrates that are not amenable to physical beneficiation and economic treatment by conventional smelting are highlighted. Issues, such as the environmental aspects, that illustrate the benefits of bioleach technology are given.

Jan 1, 2000

By Charles D. Litton

This report describes a smoke particle detector which utilizes a novel three electrode configuration and 5.0 [] source of Americium 241. The detector operates on the principle of diffusional charging by a region of unipolar molecular ions. The detector is sensitive to particle concentrations in the range of 10 to 5 20 ug/m3. The detector is intended for use primarily as an early warning fire detector but has the potential for other applications of particulate monitoring. In particular, this report adresses the potential use of the detector for monitoring diesel particulate matter (DPM). To assess the viability of this application, particle size data obtained from in-mine sampling of both DPM and dust were used to derive detector sensitivity functions for DPM and dust as a function of their mass concentrations only. These sensitivity functions are dependent upon the average diameters and size distributions of the DPM and dust. Using the derived sensitivity function for DPM, experiments were conducted in a ventilated tunnel where the true DPM mass concentrations, measured using a Tapered Element Oscillating Microbalance (TEOM) were compared to the mass concentrations calculated using the detector sensitivity function. The agreement between the two measurements was good, indicating that with additional experiments, coupled with in-mine evaluation of the detector, refinement of the device for use as a continuous monitor for DPM appears feasible.

Jan 1, 1989

By F. W. DeVries

The preoccupation with cyanide as an environmental issue has been described as virtually an obsession for state and federal agencies enacting regulations for environmental protection. This seems likely to continue in legislative planning, as well. This is despite the fact that the only significant group of cyanide-related incidents has been the bird-mortality occurrences, predominantly in arid areas, and these have been greatly reduced by a concerted effort by operators. What follows is a brief list of areas for which the industry may need either additional information or plans for defensive strategies over the next two to five years.

Jan 1, 1991

By William D. Meakins

INTRODUCTION Today, auxiliary fans, or boosters as they are sometimes called, are commonly used underground to provide ventilation for safe working conditions for personnel. Fans are installed in many ways and for many purposes; however, their use falls into three main categories depending upon the application. Auxiliary Face Ventilation For Coal Mines Usually the application of auxiliary fans underground in coal mines presents problems not normally encountered in other types of mining. Two of the major problems deal with liberation of methane at the coal face and the production of coal dust in the mining process. For these conditions it is necessary to use permissible (explosion-proof) type of equipment. As a result, these fans are discussed in a category by themselves. Auxiliary Fans For Tunnel and Drift Ventilation Tunnels and drifts present unique ventilation requirements. For instance, tunnels and drifts can be developed for considerable distances into virgin territory. Since they are generally dead-ended, the only way to obtain ventilation at the face is to use ventilation pipe to establish one leg of a ventilation circuit. The ventilation of tunnels and drifts therefore falls into another natural category. Other Uses of Auxiliary Fans For Mining Purposes Fans can be applied to mining applications in many ways other than those discussed under the other two categories. For example, many times auxiliary fans can do a much more practical job of proper air control and distribution that can be achieved with any other mechanical means; therefore, these other uses are discussed as a special category. AUXILIARY FACE VENTILATION FOR COAL MINES After 1936, federal and state coal mining laws prohibited the use of auxiliary underground fans in coal mines since such equipment had been widely misused. In certain cases, recirculation of face air had been allowed to occur thereby creating a serious potential explosive hazard by the possible buildup of excessive methane concentrations. By the late 1950s, mining machines with rapid face penetration were commonly being used in coal seams which liberated higher quantities of methane than in earlier years. As a consequence, in the late 1950s and early 1960s, the use of auxiliary face fans was again allowed under strict experimental conditions because conventional methods of face ventilation control without fans were becoming inadequate. Today, auxiliary face fans are widely used under strict federal and state control. Such auxiliary ventilation does not reduce the need for the amount of primary air from the main mine fans; however, it does help to distribute primary air more efficiently at the face. The present trend is toward an exhaust system of ventilation utilizing 406- to 610-mm (16- to 24-in.) diam tubing extending from the face to an outby auxiliary fan. Since the tubing is normally applied with negative pressure, spiral wire reinforced tubing has been replaced largely with metal and, more commonly, fiberglass tub¬ing. Additional auxiliary blower units are often used at the mouth of the room being developed, or installed on the miner or loader near the face, depending upon the amount of gas liberation present. Often one (or more) of the fan units is equipped with an integrally mounted hopper and feeder which automatically adds a continuously metered amount of rock dust to the exhaust air. The combination unit tends to make the mixture of discharge particles noncombustible and reduces to some extent the need for additional rock dusting of return airways. In this part of the chapter, typical auxiliary ventilation systems are described including curves and photograph of typical/applicable equipment. Reference will be made to "blowers" and "ex¬hausters." Both are fans and are basically the same units. They take on their name through the manner in which they are used. A blower usually has an inlet bell on the inlet side to help to obtain good air flow into the blades. An exhauster often has a discharge cone added to reduce the discharge loss. Any basic fan unit can be used either as a blower or an exhauster. Description of Auxiliary Ventilation Systems Several auxiliary ventilation systems and modifications of basic systems have evolved over recent years. Some of these systems are described and illustrated. System No. 1, an exhaust system for faces with comparatively low gas liberation, is shown in Fig. 1. Here

Jan 1, 1982

By Charles R. Nelson

INTRODUCTION The support of openings in weak sandstones can be achieved by spraying on a liquid grout which will soak in and harden to form a shell. In the St. Peter sandstone of the Minneapolis-St. Paul area of Minnesota compressive strength is increased from about 0.7 MPa (100 psi) to over 7 MPa (1000 psi) to depths of 152 mm (6 in.). A shell of this strength and thickness can pro¬vide support much as shotcrete does but at lower cost. If the spray-grouted shell is inadequate for the support needed, it provides a good base for shotcrete application, which is often difficult in weak or friable sand¬stones because the fresh shotcrete peels off along with a thin layer of sandstone. The spray-grouted technique was initially developed at the Civil and Mineral Engineering Dept. of the University of Minnesota using funds provided by RANN Div. of the National Science Foundation. It was used as temporary support in a 3-m (10-ft) wide, 3700-m (12,000-ft) long storm water drain tunnel by the Minneapolis Sewer Construction Dept. Much of the field development at this construction project was carried out with the cooperation of the personnel of the city of Minneapolis. It also was used for temporary support in a 3.3-m (11-ft) wide, 1800-m (6000-ft) long storm water tunnel built in 1978-1980 for the Minnesota Dept. of Transportation in Minneapolis. In 1975, 2000 m (6500 ft) of 1.5-m (5-ft) wide utility tunnels were spray-grouted for final lining. A 50-m (150-ft) long, 1.2-m (4-ft) wide test tunnel built at the university in 1974 was sprayed for half its length and is being observed for long-term behavior which to date (1981) is good. GROUT MATERIALS The requirements for the liquid grout are more severe than those for injection grouting. Besides being able to penetrate the rock and develop sufficient strength, it must have the following properties: (1) be nontoxic, noncombustible, and have a low odor for spraying under¬ground; (2) have controllable viscosity and setting time for adjusting to the permeability of the sandstone and the required depth of penetration; and (3) must "wet" the sandstone and develop capillary "draw" to penetrate to the required depth. A sodium silicate-based grout with the proper setting agent meets these requirements in the local St. Peter sandstone which has a uniform grain size dis¬tribution curve with D,,, = 0.1 mm, permeability of about 10 to 20 darcys, a porosity of about 25%, and less than 5% of silt size or smaller. It is 97 to 99% pure SiO2. The grout mix consists of Philadelphia Quartz Co. Type N sodium silicate and Celtite 55 Terraset Spray Grade (SG) distributed by Celtite Inc., Cleveland, OH. A volume mix ratio of 100:9:125 for sodium silicate to setting agent to water produces a grout with two to four centipoise viscosity, and initial set at 20°C of 20 min. Setting time is temperature dependent, being longer at lower temperatures, but can be adjusted by varying the setting agent concentration a few percentage points. APPLICATION The application is simple. Spray the grout on the surface until the desired penetration is achieved. Penetration rates of about 5 mm (0.2 in.) per min. are realized in the St. Peter sandstone for up to 152 mm (6 in.) of penetration (30 min. of spraying). The set time must be longer than the spraying time. The spray nozzle should be moved back and forth at a rate that minimizes runoff due to surface buildup. Both a single large hand-propelled nozzle and multiple small machine propelled nozzles have been used successfully. The pumping and mixing equipment used consisted of: (1) a hand-held, hand-pumped, 11-L (3-gal) gar¬den sprayer for test patches (mix by shaking); (2) 76-L (20 gal) batch mixing in barrels with small electric pumps for spraying and mixing; (3) two component pumps consisting of Hypro Model 5300 piston pumps (Hypro Pump Co., St. Paul, MN) on a common shaft driven by an electric motor. The sodium silicate is premixed with a portion of the water and the setting agent is mixed with the rest of the water. The two components are combined and mixed just before the nozzle; and (4) a proportioner metering the setting agent just before the nozzle with the water and sodium silicate premixed and pumped from the surface. The proportioner permits the bulk of the grout to be pumped through a single pipe or hose with only the setting agent stored underground. This is efficient and low in cost. COST The grout mix costs about $0.20/L ($0.75 per gal) in 1978 dollars. Filling all the voids 100 mm (4 in.) deep (25% initial porosity) would have a materials cost of about $5.40/m2 ($0.50 per sq ft). The labor cost of application is usually less than the material cost for normal tunnel jobs. A pump and proportioner cost less than $1000. Sodium silicate storage tanks and pip¬ing costs would depend on the particular site conditions. REFERENCES AND BIBLIOGRAPHY Nelson, C. R., 1977, "Spray Grouting for Tunnel Support and Lining," Underground Space, Vol. 1, No. 3, pp. 241¬ 245. Yardley, D. H., Nelson, C. R., Stocker, T. H., 1974, "So¬dium Silicate Spray Impregnation of Tunnels in the St. Peter Sandstone," Research Report, University of Min¬nesota, 118 pp.

Jan 1, 1982

By Nathaniel Arbiter, Brij M. Moudgil

Separating oil shale from waste material or into high- and low-grade fractions can have a major economic influence on the surface retorting process. Different shale rock components vary significantly in physical and surface chemical properties, such as specific gravity, color, and water wettability. Various techniques that use the differences in one or more of these properties have been proposed to preconcentrate oil shale before retorting. This article discusses some proposed techniques, such as gravity separation, sorting, and froth flotation. Retorting oil shale is the most common method for recovering oil from the rock. This process is accomplished either underground (in situ) or above ground (ex-situ or surface retorting). Both techniques have serious limitations, such as low recoveries in the underground method and the ability to process rich shales only in the above ground retorting method. Also, environmental problems are associated with both techniques. Some of these limitations could be overcome if feed to the retorts is of consistent grade. This could be achieved by selecting appropriate sites for in situ retorting and selective mining for surface oil shale retorting. Both of these, however, would have a serious economic impact on shale oil recovery. Obviously, little control can be exercised over preparing feed material in the in situ retorting process, but beneficiation of oil shale could definitely be advantageous in surface retorting, and should have positive influence on the overall economics of recovering oil from the shales. For example, preconcentration of mined shale could result not only in reduced costs for materials handling, but also in waste disposal costs, since waste characteristics before and after the retorting process are significantly different. Upgrading the oil shale might also allow substitution of alternate technology for retorting as well as extend the process to recover oil from marginal deposits. Also, the separated material may become a potential source for recovering other values from shale deposits. Overall, the incentives for preconcentration are to reduce costs and improve thermal efficiency of the recovery process. Oil Shale Properties Important to Preconcentration Oil shale is a carbonaceous rock assaying 5-30% organic material (kerogen) and 70-95% ash-forming minerals. Kerogen is soft, nonbrit¬tle or semi-brittle material, and generally forms a matrix between irregularly distributed mineral grains. Inorganic mineral mat¬ter-quartz, feldspar, dolomite, kaolinite, dawsonite, and nahco-

Jan 9, 1982

By Charles J. Hass

INTRODUCTION Deformation measurements are some of the simplest and most useful measurements that can be made by the mining/rock mechanics engineer in assessing the sta¬bility of openings in rock. A number of tools and tech¬niques are presently available. This chapter will de¬scribe the most common instruments, their application, and present the equations needed for data reduction. MECHANICAL STRAIN GAGE Description of Instrument A mechanical strain gage of the Whittemore type shown in Fig. I is a useful instrument for measuring deformations of pillars, sidewalls, and roofs of under¬ground mines. Measurement gage lengths typically range from 51 to 254 mm (2 to 10 in.), and the dial indicator reads to 0.0025 mm (0.0001 in.). The instru¬ment measures the deformation between precision gage points which are anchored in the rock. The anchor points are typically grouted in small holes drilled 12.5 mm (1/2 in.) or so deep into the rock. Strain a is calculated from the measured deformation AL with the equation [ ] where L is gage length. A necessary accessory for the instrument is a master bar normally made from invar steel having a low co¬efficient of thermal expansion. This bar allows one to check the instrument for changes in the mechanical zero point and to correct for temperature effects on the measuring instrument. The instrument is available from Soiltest, Inc. for a cost of approximately $340; the cost of the master bar is approximately $55; and nonreusable brass inserts which are anchored in the rock are nominally priced at $0.27 each. All prices are for 1978. Applications Two classes of applications may be considered, one where only one measurement direction is involved and the second where three measurement directions are em¬ployed. Applications where only one measurement di¬rection is necessary include: monitoring crack or frac¬ture separation or shear movement with anchor points on opposite sides of the discontinuity; measurement of vertical strain in a pillar or sidewall; and measurement of steel support deformations with anchors in the steel members. The more general application involves a strain ro¬sette consisting of three measurement directions which for convenience are oriented 1.04 rad (60°) apart to form an equilateral triangle as shown in Fig. 2. Strains in the three measurement directions [ ]

Jan 1, 1982

By Tracy T. Morris

The current state of the mining community has made it imperative for operations to reduce costs and increase productivity in order to remain competitive. This has been done in Colorado with the installation of an Outokumpu flash flotation machine for the production of a gold/silver/lead concentrate.

Jan 1, 1987

By Janusz Szywacz, Bozena Bojko, Stanislaw Wasilewski

Two groups of computer programs are described in the paper. First one is the OWEN system containing software modules designed for air flow distribution analysis and prediction within the whole ventilation network of a mine. The second group is a set of programs commonly used in a routine design work connected with chosing the optimal ventilation schemes and equipment for individual areas of a mine (headings. longwall districts etc). All the programs are designed for running on the IBM PC/XT, IBM PC/AT and compatible computer systems.

Jan 1, 1989

By Jon C. Yingling

Techniques for optimization of mineral processing flowsheets are reviewed. Though not yet widely used in the minerals industry, approaches for chemical process optimization based on successive quadratic programming (SQP) algorithms may be employed to determine optimum unit design and control settings for a mineral processing flowsheet. Moreover, in certain mineral processing flowsheet applications, specialized techniques can be applied because of the nature of the system relations. These techniques offer advanta es in efficiency. Moreover, their capability exceeds that o f the SQP approaches since simultaneous optimization of circuit configuration and unit controls can be addressed.

Jan 1, 1990

By C. M. Sliepcevich

This paper is a brief status summary of investigations by the authors over the past decade to develop a continuous process for recovering' high purity metal powder from pregnant solutions by gaseous reduction at elevated temperatures and pressures. Although these studies included extraction of other metals such as nickel, silver, and gold, this presentation will be confined to the hydrogen reduction of acidic and ammoniacal solutions of copper. The continuous hydrogen reduction process (CHR) described herein enjoys the environmental advantages of other hydrometallurgical processes but, in addition, provides a substantial benefit in fuel economy over competing processes. As was recognized by Schaufelberger in 1956, for a given amount of fuel a continuous hydrogen reduction process has the potential for producing four to six times as much metal as an electrolysis process (1). Although hydrogen reduction of metal salt solutions has been known for more than a century, extensive development work leading to commercialization was not initiated until the 1950's. Since then, commercial applications relative to other extractive techniques have been minor and have been confined to batch or to continuous, completely-mixed autoclaves. By contrast, the process described herein utilizes a continuous, tubular reactor which is operated in modified plug flow so that only limited and localized backmixing occurs. Thus, gradients in concentration, temperature, and pressure exist over the length of the reactor, the presence of which can be utilized to advantage for achieving high conversions and product quality (2, 3).

Jan 1, 1975

By L. G. Austin

Development of an equation for tumbling charge and balls plus comparison to plant data suggests that the net mill power for cylindrical semiautogenous mills can be calculated from

Jan 1, 1991

By Chuck Hornaday, Brad Miller

Geosynthetic clay liners (GCLs) are manufactured barrier layers containing a high-quality sodium bentonite clay attached or adhered to geotextiles or a geomembrane. The GCL's low permeability and high strength make it an ideal replacement for low permeability soil or clay liners for mineral extraction and processing containment applications. This paper will discuss the advantages of utilizing a GCL versus compacted clay in containment applications. Some of the advantages include: the GCL's lower permeability (5 x 10-9 centimeters per second (cm/sec)) and corresponding better composite liner leakage protection, the GCL' s greater resistance to desiccation, differential subsidence and freeze­thaw, and lastly, the ease and speed of installing the GCL. This paper will also detail a number of important case studies related to the mineral extraction and processing industry. These case studies include using GCL in two large reclamation capping projects, as a secondary liner in two gold heap leach pads, as a composite liner in a dam for stormwater runoff control, and lastly, as a primary liner for a tailings runoff diversion channel.

Jan 1, 1997

By Koehler Stout, Leroy Friel

INTRODUCTION Hydraulic sand fills have been extensively used in the United States in deep metal mines since 1940, and hydraulic fills have been placed in coal mines in Europe for many years. Numerous surface hydraulic fills exist in Appalachia for the disposal of coal mine waste and throughout the United States for the disposal of other mining, manufacturing, city, and paper company wastes. Hydraulic fills, as they are now deposited in stopes in mines, are often deposited at near minimum density and hence provide very little support to stope walls and pillars. If the support strength of fills could be increased, perhaps ground conditions in deep mines could be improved making them safer and more efficient. Surface fills deposited at higher densities could be covered with top soil upon which grass could be planted. The purpose of this paper is to describe procedures where the support strength of hydraulic fills can be considerably increased, and the focus of the paper is on applications to deep mines. In deep mines the objective of increased fill strength is to reduce heavy ground problems, improve destressing techniques, reduce or eliminate rock burst incidences, provide better working conditions, provide wall support so that more or all ore pillars can be removed, and improve mine safety, efficiency, and reduce surface environmental problems. The authors have shown that it is possible to improve fill strength used in deep mines. This paper reports the slurry filling procedure, fill testing techniques, and some recommendations for application in deep mines. Some of the reasons for low strength hydraulic fills are:

Jan 1, 1979

By C. N. Greene

I am sure it is obvious to all of you that a complete program of casualty and property insurance is as necessary for any tunneling contractor as it is for anyone else involved in trade in the United States today. Going beyond those general undefined terms, there are many areas that need specific attention, particularly for contractors, regardless of size. WORKERS' COMPENSATION Workers' Compensation is mandatory in all states and the District of Columbia. In most of the states, private insurance provides this coverage. In a few states, the state operates Workers' Compensation funds, some of which are competitive with the private sector and others are operated on a monopolistic basis. Under a monopolistic setup, you have no choice, you must buy coverage from the state. Self insurance of the Workers' Compensation risk is also an alternative in most jurisdictions. With a contractor operating only in the U.S., the coverage extensions are few in number. If your work brings you anywhere near navigable waterways or land extensions thereof, you should have both U. S. Longshoreman and Harborworkers' coverage, as well as Employer's Liability coverage for the master or members of the crew of a vessel.

Jan 1, 1983

By Frederick P. Schwarz

Sample preparation and analysis can impose devastating errors on assay data. Minimizing these errors by testing and procedural redesign may be critical to assure representative assays and project success. Replicate samples, taken at any volume-reduction and/or analytical step in a sampling procedure, generate replicate assay values whose relative differences constitute a set of data. Variance of this data judges the addition to total sampling error imposed by the step generating the replicates. A variance more than (11.5%)' is excessive for a single step. Sample volume increase and/or comminution at a step will reduce variance for that step. Rejects from well mineralized intercepts can provide bulk samples for testing.

Jan 1, 1989

By Miroslav Cervenka

The Coal, characterized by coal quality parameters as for example, ash content (Ad), moisture (Wrt), heat content (Qr1), sulphur content (Sd) and other parameters is still in many countries the basic source of energy. Energy is life, especially in modern society, where the demand for ecologically clean energy is very high; and therefore, there is great importance in effective coal utilization Direct utilization - burning of coal for energy generation, is still one of the most effective methods. In most cases, it is one of the cheapest energy transformation methods in spite of the fact that this energy transformation is connected with the deterioration of our surroundings. Deterioration can be substantially reduced if the burning of coal at power stations, heat power stations and other coal consumers is optimized. That means the burning is done in steam boilers, the technical state of which is very good; the coal has minimimum .variations with respect to the projected values; and the burning process is controlled and checked not only from a regulation point-of-view but also from an ecological point-of-view. The instrumentation capable of measuring the characteristic coal quality parameters in real time exists and it forms the basic assumption for the work our research team has made. The proper application of this instrumentation is able to provide information for burning process optimalization. It is the main topic of this paper, which is the compilation of the information on our work -made during the last five years. The whole information is based on practical experience and applied systems in Czechoslovakia in the mines and power engineering industry. See [Cervenka, 1989]

Jan 1, 1992

By Dwane K. Johnson

INTRODUCTION The small mining company faces the dilemma of how to finance the development of its properties because it doesn't have the financial resources to pay for the development costs from its own funds and doesn't have the financial strength which will enable it to borrow the money needed for development. However, with a little imagination and the right set of circumstances, a financing can be arranged for the small mining company. This paper is an attempt to describe the fundamental steps on how such financing can be obtained --in other words--what is required to provide ad- equate capital at a low cost for developing and bringing a mining property into production. Innovative financing follows from this. The basic keys for building and maintaining a successful mining company are "the four M's": Management, Market, Mine, and Money. The writer believes their order of importance is as presented and each is a building block required in order to obtain the type of financing that best suits the borrower and lender. MANAGEMENT Management must be experienced, highly organized, realistic, able to take advantage of opportunities and fulfill promises. Mine financing requires a variety of skills and concentration on the part of management. Management should have a thorough understanding derived from experience in geology, construction, mining and metallurgy and environment, marketing, and financial matters. Management must realistically visualize what will be produced at what cost and truly evaluate the risks associated so the proper security can be correctly designed. Since risk cannot be eliminated, the objective of management is to identify the risk which will be present in a given venture and assess the level of that risk which will be acceptable to the firm. Generally the risk which is present is subject to little or no modification. After management identifies and measures the acceptable risk the firm will proceed in a way that it will be least exposed. Management must determine its long-term objectives and strategies within the context of a constantly changing world. This question must be addressed before examining the sorts of risk which affect the development and operation of a specific property. The compilation and interpretation of "hard data" by competent people is good to a point but the experience and instinct of seasoned individuals are the important factors in management choosing a long-term direction for the corporation. The attitude towards risk greatly affects the goals of the corporation. Major risks in a mining project can be placed in four categories: 1. Market - Price, demand, substitution. 2. Costs - Capital, operating, financial. 3. Regulation. 4. Taxation. The feasibility study for a project is the fundamental tool used in the management of risk. Management should employ an experienced team with an established and well-understood set of ground rules for the preparation and assembly of a feasibility study. The necessary degree of realism is built into all levels of the study and if the project is technically feasible, the company's hurdle rate is then used to discount the base-case project cash flow in order to determine its financial viability. Understanding the geological significance of the mineral deposit is critical. There should be strong interplay among the pure regional geologist, the detailed mine geologist, the mining engineer, and the metallurgical engineer. The collaboration among these different disciplines will yield a feasibility study that is more reliable. The essence of this work must be appreciated and understood by the executives planning the financing. It is vital that they thoroughly understand the risks and make the proper risk assessments to cope with our rapidly changing market environment. Projecting future revenue values is paramount and is subject to much estimation. One way to mitigate fluctuations and the risk of falling prices is by selling production for future delivery. MARKET Since mining is a worldwide industry it is mandatory that bankers be aware of what is occurring in the marketplace, both foreign and domestic. The marketing of the production is a very important facet when considering financing for the small

Jan 1, 1987