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"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By A. V. Yevdokimov, Ye. V. Bogorodsky

The paper presents the results of the research on the development of gravity concentrates processing technology (gold grade is from 50 g/t to 1 kg/t and over) using intensive cyanidation with gold recovery to pregnant solutions followed by precipitation of metals from them using various methods. Test work and pilot plant results confirm that a new developed hydrodynamic regime provides an efficient treatment of gravity concentrates of polydisperse composition without their grinding and preliminary desliming. The resulting pregnant and washing solutions are amenable to metals recovery using electrowinning, cementation onto zinc dust and CIS. Cone plants with a lower ball valve for cyanidation of unground gravity concentrates developed by IRGIREDMET JSC have been successfully tested at a number of Russian operations. Currently, a modular plant equipped with gold electric precipitation from pregnant solution unit is successfully operated at a Russian gold processing plant. Cyanidation of the resulting high-grade gravity concentrate is carried out at the concentration of 8-10 g/L NaCN and 10 g/L NaOH. Gold recovery to the solution is 97-98%. Electrowinning is carried out in flow cell GNC-40M. In this case, the residual gold concentration yield is 0.3-0.5 mg/L. Also, a modular plant for relatively low-grade middlings (50-100 g/t Au) of gravity concentration has been introduced. The concentration of NaCN and NaOH is 2-3 g/L and 1.5-2 g/L, respectively, during leaching. This plant is equipped with a unit for gold cementation from pregnant solution with zinc dust. This cementation unit is of original design. It is made in the form of a filtering device and is composed of several layers of carbon fiber which contacts with zinc powder. The residual gold concentration yield from a cementation unit is less than 0.1 mg/L. Gold recovery is 93-97%. In 2017-2018, the introduction of intensive cyanidation modular plants to gravity concentrates will be planned at new projects of Russia and the CIS.

Jan 1, 2018

By A. W. Khair

This paper deals with the evaluation of the interaction between rock and the cutting tool, and with methods for determination of workability, and abrasivity of rock. A description of instrumentation is included along with research on the wearing process of bit tips and pick consumption. Analyses of bit rotation, evaluation of cutting, normal forces and energy consumption is presented. Finally influence of the basic water jet parameters and water jet assistance on the cutting process of hard and abrasive sandstone is discussed.

Jan 1, 1995

By Edmund S. Leaver

The Precious Metals Section is concerned primarily with ore-testing problems associated with precious metals and with the analysis and concentration of a large number of the strategic-mineral samples that have been included in the research program of the Bureau of Mines. During the fiscal year 1938-39, 30 projects were completed. The requests for this service are based upon the desire of the sponsor to obtain the best or most satisfactory method for maximum recovery of the minerals. In many instances it is a question of improving present milling practice, with due regard to utilization of present equipment. In others, the probable tonnage available maybe the deciding factor in the choice of a particular recovery method. Under all circumstances the results of tests axe prepared with the thought of aiding a competent metallurgist, familiar with local conditions, to formulate a practical flow sheet or to assist the mill operator to correct known losses. A microscopic examination for identification of the mineral constituents and their association in each ore is always a big help, in planning the tests and may indicate the reason for former troubles or assist with best procedure.

Jan 1, 1940

By Edmund S. Leaver

The Precious Metals Section is concerned primarily with ore-testing problems associated with precious metals and with the analysis and concentration of a large number of the strategic-mineral samples that have been included in the research program of the Bureau of Mines. During the fiscal year 1938-39, 30 projects were completed. The requests for this service are based upon the desire f the sponsor to obtain the best or most satisfactory method for maximum recovery of the minerals. In many instances it is a question of improving present milling practice, with due regard to utilization of present equipment. In others, the probable tonnage available maybe the deciding factor in the choice of a particular recovery method. Under all circumstances the results of tests axe prepared with the thought of aiding a competent metallurgist, familiar with local conditions, to formulate a practical flow sheet or to assist the mill operator to correct known losses. A microscopic examination for identification of the mineral constituents and their association in each ore is always a big help, in planning the tests and may indicate the reason for former troubles or assist with best procedure.

Jan 1, 1940

By A. J. Naldrett

"Synorogenic mafic intrusions are a common feature of the northern Appalachians. Two sulphide-bearing intrusions in central Maine that have been investigated revealed a number of important features that illustrate sulphide-silicate interaction that relates to magmatic sulphides. The Moxie Pluton is a large mafic intrusion emplaced during the Devonian Acadian orogeny. The Katahdin gabbro is a small mafic body that is probably genetically and temporally related to the Moxie Pluton. Both intrusions were formed bv the intrusion of variably fractionated magmas into irregular chambers and feeder zones. The southern half of the Moxie Pluton contains three small sulphide accumulations, whereas the Katahdin gabbro hosts a large, predominantly massive, sulphide body. Textural evidence clearly documents the magmatic origin of these sulphides.The three Moxie Pluton sulphide bodies are located at or very close to the intersection between the intrusion and the sulphidebearing Hildreths Formation. Sulphur assimilation, suggested by this relationship, is supported by the isotopically light (634S = —8 to —25) and the selenium-poor (S/Se - 25 000-48 000) character of the Moxie sulphides and correlation with the Hildreths Formation sulphides (S34S = —25, S/Se = 25 000-48 000). Isotopically light sulphur (534S = —20 to —21) and high S/Se ratios indicate that the majority of sulphur in the Katahdin sulphide body was also derived from an unexposed country rock source. The volume of sulphide in this example illustrates the potential efficiency of the sulphur assimilation process—so efficient in this case that marked dilution of the economic chalcophile elements resulted from the addition of so much external sulphur.The three Moxie Pluton sulphide occurrences are all impoverished in Ni and Cu (1.87-0.44% Ni; 0.72—0.32% Cu in massive sulphide), but contain normal Co contents (0.22-0.13%) relative to typical magmatic sulphides. The Katahdin sulphides show a greater Ni and Cu impoverishment (0.2% Ni; 0.1% Cu in massive sulphide) with similar Co (0.17%). The Ni content of the Moxie Pluton olivines document the fractional removal of sulphides during crystallization of the host magma, which resulted in the progressive depletion of the chalcophile metals in this magma. Modelling that involved the fractional crystallization of the magma coupled with the fractional removal of a specified proportion of sulphide has successfully duplicated the Moxie Pluton sulphide compositions. A similar magmatic model has been postulated for the Katahdin sulphides with a greater degree of sulphide fractionation. This latter model is again supported by extremely low Ni/forsterite ratios in olivines, though the compositional range is insufficient to document fractionation. These magmatic models are not unique, but they provide a relatively constrained and consistent explanation for the sulphide compositions.The Ni contents of olivines are the most important indicator of sulphide-silicate interaction in mafic magmas and have exploration potential. They provide a means of assessing the timing and extent of sulphur saturation in an intrusion and are a guide to the Ni content of a sulphide accumulation in equilibrium with olivine. In the Maine examples they provide strong evidence of the magmatic origin of the sulphide accumulations and justification for magmatic modelling."

Jan 1, 1984

By G. J. Simandl

"Since the 1980s, China has become the predominant producer of REEs. Recently, it introduced REE export quotas and this started a world-scale REE exploration rush. REE resources are concentrated in carbonatite-related deposits, peralkaline igneous rocks, pegmatites, REE ± P veins, ion adsorption clays, placers, and some deep ocean sediments. REEs could also be derived as a by-product of phosphate fertilizer, U processing, Ti-Zr-bearing placers, and exploitation of Olympic Dam-type sub-type of IOCG deposits. The ideal REE development target would be located in a politically stable jurisdiction such as Canada. REE grade and tonnage, mineralogy, and permissive metallurgy are some of the key technical factors that could be used to screen projects. INTRODUCTIONAccording to the International Union of Pure and Applied Chemistry (IUPAC), the term “rare earth elements” (REEs) encompasses yttrium (Y), scandium (Sc), and the lanthanide series: lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), and lutetium (Lu). This definition is used throughout this paper.REEs are subdivided into light (LREE) and heavy (HREE) categories. LREEs include, Sc, La, Ce, Pr, Nd, Sm, Eu, and Gd and HREE include Tb, Dy, Ho, Er, Tm, Yb, Lu, and Y. Promethium (Pm) does not occur in nature. Concentrations of individual LREEs in the upper crust of the Earth are comparable to those of base metals. Even the least abundant REE (Lu) is about 200 times more abundant than gold.The production of REEs, reported in the form of oxides (REOs), for 2011 is estimated at 140 000 t (Figure 1a). Although high technology industries can substitute several REEs with other materials, these substitutes are typically more expensive or less effective than the REEs they replace. A number of countries, including the United States, consider several REEs essential for national security, their economy, and a general reduction in green house gas emissions. The forecasted demand for individual LREOs is much higher than that of HREOs (Figure 2). Dy, Eu, Tb, Nd, and Y are essential for the US economy and subject to predicted supply disruptions (U.S. Department of Energy, 2010)."

Jan 1, 2012

By W. J. Fene, R. D. Currie

The value of protective clothing in the prevention of injuries has long been recognized in many of the leading industries , but the adoption of the idea into mine safety programs is comparatively new . Once started , however , the idea has grown rapidly and the results already obtained by mining companies have shown that it is fundamentally sound . Both coal and metal mining companies are rapidly adopting these protective measures , and since 1924 many mines have become well equipped with eye , head , and foot protection . At the present time approximately 70 percent of the employees in the anthracite mines of Pennsylvania are provided with safety hats . At many metal mines all employees are provided with safety hats, shoes , and goggles . The Pennsylvania mining law provides that all shaft · workers in anthracite mines shall wear protective hats . In According to a study³ made of the nature of 3,485 temporary injuries and of the parts of the body of underground coal mine employees most exposed to occupational hazards , the head and face were injured 665 times , the hands 856 times , and the feet 565 times . Of 2,555 temporary injuries in metal mines , the head and face received 484 , the hands 788 , and the feet 357 . a similar study4 made by a coal -mining company for the year 1928 , of 556 injuries the scalp received 9 , the skull. 4 , the eyes 47 , the hands 62 , the thumbs 21 , the fingers 141 , the ankle , the feet 51 , and the toes 35 . Probably most of these injuries could have been prevented by suitable protective clothing and equipment . This study also revealed that at least one injury occurred

Jun 1, 1933

By Peter N. Calder

The orientation of planes of inherent weakness (joints) with reference to an excavation in rock is the critical factor determining stability. The purely frictional 'residual' strength remaining following the breakdown of initial cohesion is the only strength which can be counted on to resist sliding for the long term. A simple method of resolving driving and resisting forces in three dimensions along joint intersections 'undercut' by the excavation is presented. Contrary to the case of slope failure in soils, it is shown how significant changes in the slope angle sometimes have no effect on the degree of stability pre-sent in rock slopes. Wall control by reorientation of the slope, the use of cable bolts and water diversion are briefly discussed.

Jan 1, 1970

By C. L. Monroe

It has been the custom in recent years to look upon Atlin as a worked-out placer camp. This is a conception, however, which is far from the real situation. The placer-gold deposits of Atlin are today, after thirty-one years of continuous working, a field well worth the attention of the mining world. It is true that the shallow diggings (the 'easy money') have been practically cleaned out, but although there have been perhaps ten millions, or more, in gold already taken from the district, there are still many more millions left in the creek beds . A conservative estimate of the gold still remaining in one creek alone, Spruce creek, for a long time known as the 'prospector's meal ticket', would place the amount at anywhere from fifteen to twenty million .dollars, and there are a number of other creeks that have never been thoroughly worked, and some only partially prospected. That the true situation is beginning to be recognized by those who are on the lookout for a profitable field for investment, is born out by the fact that, within the last few years, New York capital directed by Mr. Charles V. Bob, who is also responsible for the opening up of the Engineer mine, has installed on Pine creek, where the first discovery of gold in the district was made, one of the largest hydraulic mining plants on the continent, utilizing six miles of the old hydraulic ditch of the Discovery Mining and Power Company, and over two miles of pipe line. On Boulder creek, where already two millions have been taken out, the Consolidated Mining and Smelting Company are on their third year of development work in opening up the unworked ground, while on Otter creek a newly organized French company have started a plan of development which will involve an expenditure in the neighbourhood of $200,000, and two or three years' work, before they can hope to find gold in paying quantities. It is probably safe to prophesy that placer gold will be produced in the Atlin district for the next fifty years

Jan 1, 1929

By Daryl R. Tweeton

The Bureau of Mines is investigating possible applications of geophysics to monitor leachate during in situ mining. Tomographic reconstruc-tion of seismic or electromagnetic crosshole data appears applicable. The tomographic program BOMTOM (Bureau of Mines tomography) was written and then used to investigate reconstructions with synthetic travel time data. The calculations confirmed that without constraints, crosshole data do not provide unique solutions. The solution is not determined solely by the data, but is also influenced by the velocity guesses starting the iterative solution procedure. The effectiveness of constraints in combatting nonuniqueness was examined. The requirement that the velocity not vary laterally at the top and bottom of the pixel grid was effective. This constraint is realistic when the top and bottom of the grid represent dry and saturated re-gions, respectively. Limiting the maximum velocity improved reconstructions, but may not be applicable in practice. BOMTOM uses the simultaneous iterative reconstruction technique (SIRT) with straight ray paths. The program is efficient in use of memory, and can be run on a personal computer. A source code in FORTRAN is listed. A source code in BASICA and compiled executable codes in both languages are available from the Bureau's Twin Cities (MN) Research Center.

Jan 1, 1985

By Andrea Pedroza da Rocha Santos

Neste trabalho, amostras de aço Lean Duplex UNS S32304 foram submetidas à temperatura de 800°C em um forno acoplado a um difratômetro de raios-x durante intervalos de tempo de 30, 60 e 90 minutos. Com o objetivo de analisar em tempo real a transformação das fases constituintes, foram realizadas várias varreduras insitu durante os diferentes tempos de permanência em 800°C deste material. Assim, observou-se a formação da fase sigma neste aço, tanto nos contornos de grão da ferrita como nas interfaces ferrita/austenita. Os valores de fase sigma obtidos para cada tempo de exposição foram calculados através do método de Rietveld sobre cada difratograma obtido e variaram de 11% a 17%. Notou-se que a fase sigma exibiu crescimento contínuo até 60 minutos e variação após este período. Todavia, observou-se que a formação de fase sigma a 800°C ocorre de forma significativa neste material após 30 minutos de aquecimento, o que pode comprometer as propriedades do mesmo.

Aug 16, 2017

By P. D. Kovscek

The Bureau of Mines has tested a low-thrust water-jet-assisted rotary drill. This work was performed to evaluate the performance of a water-jet-assisted drill operated at thrust levels typical of a handheld manual-thrust operation. Prior work by the Bureau had indicated that using water-jet assist with high-thrust drilling applications would increase drilling rate. Small-diameter holes were drilled in five different types of rock. Thrust and water pressure were varied as the drill rate was monitored. The test results indicate that drilling rates increase with increasing water pressure and thrust. The water jet has more effect on reducing the specific energy when drilling in the harder rocks than in softer rocks. Variation in drill rate for a given rock sample is attributable primarily to the material heterogeneity within the sample. One rock type (Greenwich sandstone) could not be drilled efficiently with the water-jet-assisted drill.

Jan 1, 1988

By T. McCallum, C. Cooper, C. Lewis

"Following a successful solvent extraction (SX) pilot plant demonstration in 2016, CYANEX® 600 has been used commercially to recover molybdenum from concentrate leach liquor since March 2017. Consistent with the piloting results, the commercial plant has achieved expected molybdenum recovery, a significant reduction in base consumption, and a step-change improvement in physical performance. This paper highlights the optimization activities and plant performance from startup through normal operation. INTRODUCTION Historically, tertiary amines have been the most commonly used extractant for molybdenum and rhenium recovery. Tertiary amines utilize a protonation of the ligand combined with an anion exchange mechanism as proposed in equations (1-2). R3N + H+ ???R3NH + (1) 4R3NH+ + Mo8O264- ???(R3NH+)4Mo8O264- (2) In addition to the transfer of Mo and Re, the amine transfers acid and other anions to the strip liquor. The undesirable transfer of other species increases base consumption during stripping, impacting operating costs. Additionally, lower solubility of molybdenum-amine complexes create operational challenges, resulting in diminished physical performance. The presence of colloidal Si in concentrate leach liquors and the formation of Pickering Emulsions adds to the physical plant performance challenges with the amine extractant. CYANEX® 600, a phosphinic acid-based extractant, uses a cation exchange mechanism proposed by equation (3). 2(H2R2) + MoO22+ ??(HR2)2MoO2 + 2H+ (3) The cationic exchange mechanism eliminates chemical transfer of acid and other anionic impurities and avoids some of the physical challenges of the amine extractant (emulsion and 3rd phase formation). In addition, the reagent offers high selectivity for Mo over Re, which may be desirable in certain moly pressure oxidation (POX) flowsheets. Alkali base (ammonium hydroxide, sodium hydroxide, sodium carbonate, etc.) is used for molybdenum stripping. Therefore, reduction or elimination of chemical acid transfer from extract can significantly reduce base consumption in strip. Extensive laboratory and pilot plant testing was completed to evaluate the use of CYANEX® 600 for molybdenum recovery at Freeport-McMoRan’s Bagdad operation. The test work and pilot demonstration confirmed a reduction in base consumption along with improved selectivity. In addition, the evaluation highlighted a step-change improvement in physical performance over the incumbent amine extractant. The decision was made to convert the commercial operation to CYANEX® 600 in March 2017."

Jan 1, 2018

By K. Ananthpadmanabhan

Hydrolyzable surfactants such as fatty acids and amines undergo, in addition to micellisation and precipitation, various associative interactions in aqueous solutions to form ion molecular complexes such as acid-soap, dimers etc. depending upon the solution conditions such as pH. The interaction of these collector species with the mineral surface and with other dissolved species in solution will play a significant role in determining the interfacial processes such as adsorption and flotation. Marked differences in the hydrophobicity imparted to the mineral surface depending upon the solution conditions such as Ph can be attributed to possible differences in surface activities of the above complexes. This aspect of solution chemistry of flotation systems is discussed here for two widely used collectors namely, oleic acid and dodecylamine. Equilibrium species distribution diagrams based on the available literature .data and on estimates of energy of interactions between molecules, have been obtained for oleic acid and dodecylamine solutions.

Jan 1, 1978

By H. Memarian

In the last few decades, many developing countries have tried to expand and improve upon higher education, which is acknowledged to be the leading factor for development. In this respect, develiping countries have significantly increased the number of tertiary institutions and their students. These rapid expansions, along with all the benefits, have drawbacks as well. An example is the status of mining engineering education in Iran. Presently, the number of active mining engineering departments in Iran (27) is more than the sum of similar departments in Canada, Australia, the United Kingdom, and South Africa (23 altogether). Also, the number of annual mining graduates in Iran (645) is more than the cumulative graduates of the United States, Canada, the United Kingdom, and Australia (613). The expansion of mining engineering education in Iran has coincided with the closing or merging of similar mining departments, as well as a decline in the number of interested students in the industrialized world. The present study shows that the need for development and the excessive number of high school graduates, resulting from high population growth in the early 1980s, are the two primary factors influencing the significant expansion of mining engineering education in Iran.

Jan 1, 2007

By John V. Beall

Let's start at the beginning, Mr. Turner. Where and when were you born? In Lansing, Mich., on July 31, 1880. And what was your education? I went to the University of Michigan, where I got an A.B. degree in 1902; then to the Michigan College of Mines at Houghton, graduating from there in 1904 with a B.S. and an E.M. What was your first job in the mining industry, Mr. Turner, and what were you paid? In the summer of 1902, 1 was a field assistant for the U. S. Geological Survey in southwestern Idaho and southeastern Oregon, working under Israel C. Russell, professor of geology at the University of Michigan, who incidentally, had just returned from an expedition to study the effects of the eruption of Mt. Pelee, on Martinique. I was paid $60 a month and found; in addition to doing geologic and hydrographic work, I cooked many of the meals for a party of four, and wrangled four horses. I slept for four months under the stars, without a tent.

Jan 1, 1949

By Robert H. Townsend

The following paper discusses the mining, transportation, and crushing methods, with costs, at the San Andreas plant of the Calaveras Cement Co. It is one of a series, prepared for and published by the U. S. Bureau of Mine describing methods used in cement-rock quarries throughout the country. These papers are designed to disseminate technical information regarding the methods used. The cost tabulations represent operating expenditures only and not total cost. It is recognized that publication of total costs mightin some instances cause embarrassment to individual producers as well as to the industry as a hole. On the other hand, operating costs are essential to the technical discussion and study of the methods employed. The attention of the reader is specifically called to this differentiation in order that no misunderstanding of the scope of the cost-tabulations shall ensue.

Jan 1, 1933

By A. Lawson

"Continued and expanded use of underground diesel-powered equipment is considered desirable in order to achieve necessary production capability, particularly when coal becomes increasingly in demand as an energy source. Although diesel engines are derated for underground use, concern has been expressed in many quarters regarding the health effects of worker exposure to diesel-generated particulate and NOx emissions. This concern will increase as Canadian diesel fuel quality becomes heavier and with higher sulphur content. This could result in a requirement to increase ventilation rates by 50%.This paper describes the results of studies of various approaches designed to reduce diesel emissions. Two major approaches have been followed: fuel modification, and emission control hardware development. The results of progress in the development of these approaches will be described.Fuel modification includes the application of water/diesel and methanol/diesel fuel emulsions to the engine. Details of the techniques employed in this approach will be described, together with the effects on diesel emissions. (The paper is concerned with the emission aspects only, not the possible major engine modifications and/ or substitute materials of construction for 100070 methanol.) Use of methanol has the added advantage of acting as a diesel fuel substitute and extender, and there are expectations that underground diesel engines could eventually operate on close to 100% methanol fuel, thereby eliminating particulate emissions. The results of emission control hardware development will also be presented and will include the effects of catalysts, water scrubbers, exhaust filters and exhaust gas recirculation techniques on emissions. A combined systems approach employing a number of these components appears to be the most viable method of controlling the complete array of diesel emissions.This work should culminate in a better understanding of the costs involved in employing fuel modification or emission control hardware relative to the costs of increased ventilation which mpy be necessary to maintain a safe working environment for the underground worker."

Jan 1, 1981

By H. D. BAILEY, John W. Cole

This paper is one of a series on mining methods and costs published by the Bureau of Mines .. Because of the role, played by the Federal Government in the discovery of the ore body, a description of the exploratory operations of the Bureau of Mines, is included ...

Apr 1, 1948