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By F. T. Cawood

The distinction between real estate ownership and that of interests in the property is fundamental to the appraisal of mineral properties. This distinction affects the nature and understanding of security of tenure and, consequently, the perception of what constitutes fair value. Legal matters are a particular concern because of their influence on security of tenure, ownership definition and use restrictions. The dynamics of the market and the complex interrelationships between the factors of production define value at a specific point in time for the bundle of rights, interests and assets that constitute a mineral property. Because each mineral property is unique, physically immobile and of a wasting nature, its usefulness to its owner and society must be optimized. The US Appraisal Institute (2001) classified the forces that affect land use as the cultural, political and economic attitudes of society. These forces culminate in laws that often dictate the purposes for doing appraisals. Once the legal definition of the asset is understood, valuers can decide on the valuation process that will support the final valuation approach.

Jan 1, 2004

By G J. A Dewar

The Australian Corporations Law generally requires Independent Expert Reports to be presented in support of capital raising or in defence of mergers and takeovers. The introduction of the VALMIN Code in 1995 (and its recent revision issued as the VALMIN Code, 1998) made Assessment and Valuation Reports in these circumstances much more comprehensible than before because of its key requirements for transparency and materiality. By forcing the Independent Valuer to provide an explanation of the reasoning behind the estimation of a particular resource asset, VALMIN allows the reader to clearly see any error or illogicality in the valuation methodology used and to seriously question or even reject the resulting value. Even though many elements of resource asset valuation practice are undeniably subjective, there must be some basis of objective rationality to it. Independent resource asset Valuers are the essential link between mineral explorers/miners on the one hand and brokers/analysts/fund managers/investors on the other. The minerals and financial industries both expect them to not use inappropriate or invalid valuation methods and illogical steps within these methods. This paper examines some of the less sensible ways in which some of the main techniques that Valuers commonly use to assess the fair market value of mineral properties have been applied in recent instances. The authors hope to discourage the adoption or perpetration of the æWhat-number-did-you-have-in-mind?' approach. It is MINVALÆs view that as many methods as possible should be used in any resource asset valuation. If any of the resulting estimates are in approximate agreement (particularly if they were derived using the less subjective of the available methods), ie if they cluster, they are probably more persuasive as being the Preferred Value of the asset than outlier values within the Valuation Range.

Jan 1, 1999

By Willard C. Lacy

A mining operation begins with prospecting and exploration-stages with long periods of investment and high risk of failure. However, success in exploration ultimately determines survival of the mining industry. Prospecting and exploration may discover evidence of a mineral occurrence and outline its size and character, but ore deposits that support mining are "made" through the collective efforts of project geologists, geophysicists, geochemists, metallurgists, engineers, chemists, lawyers, and even politicians (Joralemon, 1975). Some deposits may go through multiple cycles of rejection and recommendation, discovery and development, decline and abandonment, rediscovery and development, etc., as economic, technological, or political conditions change or geologic understanding is improved. Peters (1987, p. 233) graphically illustrates the normal life cycle of a mine and the position of exploration in the cycle (Fig. 4.0.1). During the past fifty years, mineral exploration has evolved from comparing evidence of mineralization of prospects with that of known deposits to a more quantitative science employing many facets of geochemistry, geophysics, multispectral sensing from space, computer data storage, analysis, modeling, and most importantly, a better understanding of ore genesis. This modem approach to exploration began in the late 1940s and continues to develop. Exploration efforts peaked in the 1960s with emphasis upon the search for porphyry copper deposits, Mississippi Valley lead-zinc deposits, and volcanogenic massive sulfide copper-lead-zinc deposits. It peaked again in the middle and late 1980s with emphasis upon micron-size disseminated gold and epithermal and stratiform precious metal deposits.

Jan 1, 2008

The middle-Devonian Dulladerry Volcanics is a complex of A-type, predominantly rhyolitic ignimbrites, lavas and breccias. They form a NNW trending belt some 90 km long and 10-20 km wide, east of Parkes, NSW. The volcanics are dominated by widespread ignimbrite units with minor basalts, sediments and rarer andesites. The volcanics were deposited in a sub-aerial, possibly continental rift setting and are similar in chemistry and age to the Eden - Comerong - Yalwal Volcanic Zone (EVZ) on the NSW south coast. The volcanics exhibit an unusual Atype chemistry (high Zr, Y, Nb, REE, Ga). This distinctive composition illustrates that the volcanics are not comagmatic with the adjacent Yeoval Granite Complex or Eugowra Granite, which show typical I-type fractionation trends. Epithermal gold veins occur in basalt and andesite in the Dulladerry Volcanics at Mt Aubrey (Hopf, 1992), near Baldry. Alteration also occurs in the Glen Isla and Red Hill areas, with epithermal sinter recognised at Glen Isla. Copper and minor gold mineralisation occurs at the contact of rhyolite and andesite at Reedy Creek, but is not of epithermal origin. The analogous EVZ also contains several epithermal gold fields and it is this style of mineralisation which provides the most prospective targets in the Dulladerry Volcanics. Although the Dulladerry Volcanics also contain high background levels of REE and metals such as Zn and Pb, the general lack of fractionation and water-undersaturated character of A-type magmas does not lend itself to the development of significant concentrations of these elements into a fluid phase and mineralisation. The prospectivity of A-type volcanics in general could not be regarded as high. However, an indicator of some fractionation in the Dulladerry Volcanics is provided by the fairly low abundance (average 230 ppm) and wide range (

Jan 1, 1995

By R. P. Viljoen, A. D. Scheglov, A. L. Sokolov

"Abstract -The distribution of mineralized provinces is analyzed on the basis of their genetic link with specific blocks of the earth's crust including ancient platforms, mobile belts and zones of tectonic­ magmatic activation. Mobile and fold belts surround the Siberian platform in Russia and the Kaapvaal craton in South Africa, with decreasing age zoning away from ancient platform margins. The main differences in the geological development of the two cratonic areas are: (1) the long period before the final stabilization of the Siberian platform (3600 Ma to 1600 Ma) and the comparatively short period of time for the stabilization of the Kaapvaal craton (3600 Ma to 3050 Ma) and (2) the intensive multiple activation of the marginal zones of the Siberian platform and the tectonically­ controlled, magmatic sedimentary, intracratonic activity, typical of the Kaapvaal craton. Mineralization of the Siberian platform is largely characterized by marginal reactivation zones of differing ages although mineralized intracratonic Cu-bearing basins of Proterozoic age are also known. Mineralization of the Kaapvaal craton is mainly related to the formation of the intracratonic basins i.e., Witwatersrand (Au, U) and Transvaal (Au). The latter is characterized by multi-age volcanic-intrusive activity including the emplacement of Bushveld Complex (Cu, Ni, Pt, Cr, Au, V). The Siberian platform is characterized by the prolonged development of inherited mineralization from Archean until the late Mesozoic. The main period of mineralization in the Kaapvaal craton is restricted to the middle Proterozoic.The Baykal-Patomskaya and Namaqua-Natal mobile zones occupy similar positions adjacent to the Siberian and Kaapvaal cratons, respectively, and demonstrate similar modes of metallogenic development: i.e., the early formation of exhalative Pb-Zn-Cu deposits during the early stage and magmatic Cu deposits during the late stage. The more remote mobile belt near the Siberian plat­ form, the Trans-Baykal, is characterized by intensive multi-age mineralization (Wo, Mo, Sn, fluorite), related to a period of tectonic-magmatic activation. The Saldania Belt occupies a similar position near the Kaapvaal craton but is known for its poor Au, and Cu rnineralization. lt does, however, have some similarities with Trans-Baykal Belt in regard to Mo-W bearing granitoids.The phenomenon of interference of geosynclinal, orogenic, platform, and tectono-magmatic activation regimes is known for the Russian section of the Pacific Ocean Volcanic Belt."

Jan 1, 1994

By R. P. Viljoen, A. L. Sokolov

"The distribution of mineralized provinces is analyzed on the basis of their genetic link with specific blocks of the earth's crust including ancient platforms, mobile belts and zones of tectonicmagmatic activation. Mobile and fold belts surround the Siberian platform in Russia and the Kaapvaal craton in South Africa, with decreasing age zoning away from ancient platform margins. The main differences in the geological development of the two cratonic areas are: (1) the long period before the final stabilization of the Siberian platform (3600 Ma to 1600 Ma) and the comparatively short period of time for the stabilization of the Kaapvaal craton (3600 Ma to 3050 Ma) and (2) the intensive multiple activation of the marginal zones of the Siberian platform and the tectonicallycontrolled, magmatic sedimentary, intracratonic activity, typical of the Kaapvaal craton. Mineralization of the Siberian platform is largely characterized by marginal reactivation zones of differing ages although mineralized intracratonic Cu-bearing basins of Proterozoic age are also known. Mineralization of the Kaapvaal craton is mainly related to the formation of the intracratonic basins i.e., Witwatersrand (Au, U) and Transvaal (Au). The latter is characterized by multi-age volcanic-intrusive activity including the emplacement of Bushveld Complex (Cu, Ni, Pt, Cr, Au, V). The Siberian platform is characterized by the prolonged development of inherited mineralization from Archean until the late Mesozoic. The main period of mineralization in the Kaapvaal craton is restricted to the middle Proterozoic.The Baykal-Patomskaya and Namaqua-Natal mobile zones occupy similar positions adjacent to the Siberian and Kaapvaal cratons, respectively, and demonstrate similar modes of metallogenic development: i.e., the early formation of exhalative Pb-Zn-Cu deposits during the early stage and magmatic Cu deposits during the late stage. The more remote mobile belt near the Siberian platform, the Trans-Baykal, is characterized by intensive multi-age mineralization (Wo, Mo, Sn, fluorite), related to a period of tectonic-magmatic activation. The Saldania Belt occupies a similar position near the Kaapvaal craton but is known for its poor Au, and Cu mineralization. It does, however, have some similarities with Trans-Baykal Belt in regard to Mo-W bearing granitoids.The phenomenon of interference of geosynclinal, orogenic, platform, and tectono-magmatic activation regimes is known for the Russian section of the Pacific Ocean Volcanic Belt."

Jan 1, 1994

By C. E. Larson

Man's use of 'glass predates recorded history. Although early man had no knowledge of how to form glass, artifacts have been found near naturally occurring glass formations where molten rock had been rapidly cooled. In areas where volcanic activity is evident, primitive people fortunate enough to have lived in that area used the naturally formed glass to make arrow heads, knife blades, tools and ornaments. These glass artifacts have been found all over the world. In fact in todays modern society there are recorded cases of aboriginal tribesmen in Australia fabricating arrowheads from glass bottles. 2. A Brief History of Glass The first evidence of man made glass were beads made around 2500 BC by the Egyptians. The Mesopotamians also made glass beads at about the same time.

Jan 1, 1986

By E. C. Watkins

The fiber glass industry is an industry that. hopefully is still in its infancy and far from a mature business. Fiber glass, as will be discussed in this paper, deals with continuous strand glass as used in the textile laminate and reinforced plastics industries. More specifically, we are speaking of glass used for printed circuit boards, tapes, paper, cloth, pipes, tanks, boats, recreational equipment, roofing shingles, and automotive applications. Compared to the flat, container and decorative glass industries, we are very young. The early patents on fiber glass applications were issued in the 1930's. The type of glass most commonly used in the world and that discussed in this paper is designated as "E" glass. This is a boro-silicate type glass having specific chemical and electrical resistance and low thermal expansion properties.

Jan 1, 1986

By F. D. Huntley

Raw materials used by the Flat Glass Industry are known in the Industrial Minerals geology sector as Specialty Products. These pro- ducts must meet specification limits usually not the same for all glass manufacturers. Evolving new glass compositions will require mineral concentrates of consistent purity being produced within economic limits that will assure market viability of the resulting glass product. The amount of success the Flat Glass Industry will achieve by developing and maintaining domestic production centers will be determined by many economic factors which affect the costs of doing business. Technological developments by mineral processors must continue in order to achieve more efficient production of high quality glassmaking raw materials.

Jan 1, 1986

By W. L. Batt

MODERN war means mechanization, and mechanization means raw materials, especially minerals-and lots of them. Let me recall a few events of recent history-events that constitute mile- stones down the road to the war now blazing on three continents and threatening to spread still farther. In 1932, Japan took Manchuria, largely upon the excuse that she needed raw materials; in 1935, Italy invaded Ethiopia, largely upon the excuse that Mussolini's growing nation needed raw materials-in this case oil; from 1933 to 1935, Germany cried out for a greater share of the world's natural wealth, and since 1938 has invaded or occupied ten other countries, frequently upon the excuse that she needed-and had a right to-more raw materials.

Jan 1, 1940

By H. V. Fairbanks

The following processes were investigated using ultrasonic treatment in mineral recovery: (1) cleaning coal from coal slurry ponds, and (2) extracting precious metals from tailings and other sources. The treatment entails the production of a water slurry of the material containing the mineral which is made to flow over the vibrating surface of the ultrasonic treatment unit. The vibrations transmitted into the slurry break up particle agglomerates and also produce a scrubbing action on the surfaces of the particles. The treated mineral particles were found to have increased settling rates, better compaction, and more rapid water drainage.

Jan 1, 1990

By Jussi Liipo, Pertti Lamberg

Image analysis of process samples gives precise data on particles and their composition. The results presented as liberation tables and maximum grade-recovery curves are informative and good for comparing different feed materials, but basing on them it is impossible to predict the results of the mineral separation process (flotation, magnetic separation, gravity separation) in details. The exact and extensive particle data has remained large unused, because there has not been a model nor a modeling program to include particle information in mineral separation processes. This study introduces a method, which incorporates the particle data in the kinetic model of flotation. Similar approach can be used in modeling other separation processes, too.

Jan 1, 2003

By R. H. T. Garnett

Recovery performance may be measured in absolute terms or in relative ones that relate the actual mining outcome to what was expected. Consideration is possible in terms of the control exercised by the operator. The eventual mineral output is the only figure known with complete certainty. The paradox is that, while performance is judged against the sampling, the reverse also applies. The R/Efactor and its four component factors are the best overall measures of performance. The choice of equipment for sampling and mining is very important. The sampling process may introduce errors and the sample density may lead to poor mining block selection. The resulting recovery performance is most visible on a regression curve. Changes in the cutoff grade must also be taken into account to avoid unrealistic production targets. Estimation methods incorporating different mathematical assumptions and techniques may cause over-or underestimation of the grade and volume. If the selective ability of the mining equipment does not match the size of the reserve blocks, the performance will be compromised. The treatment plant efficiency, the throughput rate and the degree of bedrock clean-up also affect performance. The maximization of throughput does not yield the optimum results. Marine conditions, which are outside the operator's control, affect not only operational availability but also performance. Examples are provided from actual operations for various commodities, showing the relative magnitude of the different effects upon performance.

Jan 1, 1999

By McMahon DW

The major components of a mineral reserve estimate for project development purposes are described with respect to sampling, geology, estimation methods, mining factors, metallurgical factors, environmental factors, financial and other factors. Each of these components impact to varying degrees on the recoverable metal or product of a new mining project. The evaluation of a project is a complex process involving the best the profession can provide in terms of geological understanding, engineering ingenuity, metallurgical skills and financial evaluation.

Jan 1, 1983

By Morrison J

Considerable confusion is to be found in the methods of estimating mineral reserves. The solution appears to be more cooperation between industry and government to agree upon a classification system with guidelines to overcome the problem of the many variable factors affecting reserves. The classification system proposed by the United States Bureau of Mines and the United States Geological Survey (USBM/USGS) together with the guidelines similar to those suggested by the Australasian Institute of Mining and Metallurgy/Australian Mining Industry Council (AusIMM/AMIC) is recommended for reporting mineral reserves to government.

Jan 1, 1979

THE Secretary of Commerce is to be urged to as-sume leadership in assembling data as to produc-tion and consumption of minerals and metals, and studies of their importance in trade, as a result of the joint conference of the Institute and the Mining and Metallurgical Society of America, held on Tuesday afternoon, Feb. 15. With no set program and no especial effort to promote interest 120 members of the two soci-eties assembled and for two hours discussed in the most informal and frank manner the whole situation. George Otis Smith acted as chairman, Clinton H. Crane, who was to have served in that capacity, having been called abroad unexpectedly. Major Taylor for the Army and Capt. R. E. Bakenhus for, the Navy paid high tribute to the value of the reports already made by the committees of the two societies and pointed out the need of addi-tional data and of constant review of the figures, as a measure of national defense. J. E. Spurr, R. C. Allen, W. O. Hotchkiss, Fred Hellmann, W. Spencer Hutchin-son, P. N. Moore, A. C. Lane, E. E. Ellis, and others discussed various phases of the subject, reviewed what had so far been done, what was now in progress, what had been planned for the future, and the necessary limitations of the work. A. W. G. Wilson related the experience of the Canadian Government in this field, emphasized the importance of studies of the rate of consumption, and brought up the special case of the waste of the sulfur in sulfide ores with correspondingly increased demand on raw sulfur supplies. Mr. Lane pointed out that conservation, to be soundly based, must recognize the necessity of the present value of the ex-pected future returns exceeding the cost of the conserva-tion. Mr. Ellis called attention to the remarkably rapid change in technology and other factors that made predic-tions for more than a very short period extremely risky. Mr. Hotchkiss noted the large part of modern industry that is fundamentally dependent on minerals. Studies made by him indicated that even in a furniture manu-facturing center, such as Grand Rapids ids with its large consumption of wood, the metal and mineral industries constituted 60 per cent of the industrial life. For Michi-gan as a whole 55 per cent of the capital used in all in-dustries was employed in the mining and the metal in-dustries. This, he said, was little recognized because the buyer of alloys and metals was so far from the pro-ducer of raw materials, .but the ultimate supply of the latter was evidently of fundamental importance to the whole people. Mr. Spurr held that the more knowledge as to these matters the better. Mr. Hellmann felt that in the especial case of copper, wastage was less impor-tant than markets and economical routing of metal to them. Mr. Hutchinson classified minerals into three groups: (a) those, such as gold, that are used with very little loss; (b) those, such as coal, as are entirely consumed in use; and (c) the intermediate group. The problem, he thought, was necessarily different for the minerals of each group. Mr. Manning proposed definite-ly that since it was manifestly a great national problem, the Department of Commerce be asked to assume leader-ship here and to devote the necessary funds and staff to keeping up such a perpetual inventory of mineral resources as would best serve the public needs, both for war and peace. Both George Otis Smith and Scott Turner agreed that this was probably already within the authority of the Department but Mr. Turner told of the difficulty in obtaining sufficient funds for the work. Recognizing that the job was large enough to require the help of both public and private interests and the desire of the two societies to be helpful to the maximum extent, the Chair was asked to appoint a committee from the meeting to present to the Council of the Society and the Board of Directors of the Insti-tute a definite plan for further work. P. N. Moore, Van H. Manning, J. E. Spurr, R. C. Allen, R. H. Richards and W. S. Hutchinson were appointed and drew up the following plan for, consideration

Jan 3, 1927

By M. Vallée

Several reviews of mineral project performance in the past 35 years indicate a pattern of occasional, but recurrent, mining project failures due to shortcomings in geological information and estimation, mineral processing and metallurgical testing, feasibility study objectives and requirements, and project start-up methods. A commitment to quality assurance and continuous improvement methods and to obtaining “ENOUGH DATA, OF APPROPRIATE QUALITY” is essential. Recent international and Canadian proposals for mineral resource and ore reserve definitions have taken a nonprescriptive stance that will undermine the formulation of requirements, guidelines and industry standards for efficient deposit delineation and estimation, and for the determination of project feasibility. To help reduce problems, every feasibility study supporting a mine development and production decision should be based on objectives and methods adequate to reach completion targets similar to the bankers’, as a good business target for a profitable project. In a resource/reserve system, the use of reserve should be restricted to a project that meets required technical, economic and legal feasibility requirements for successful project implementation, and the definitions of these categories should provide explicit limits. Current shortcomings will limit the ability of the Qualified Person to provide “adequate professional practice,” fulfill his/her professional responsibilities to his employer or client and provide adequate information to the investing public. We must take advantage of present opportunities for Setting New Standards for the new Millennium.

Jan 1, 2000

By A B. Christie, S C. Cox

Effective land-use planning requires accurate knowledge of mineral resource potential. Mineral companies during reconnaissance exploration, feasibility investigations and mine development also use this type of analysis. The Institute of Geological and Nuclear Sciences is undertaking a two-year project reviewing the resource potential of the West Coast of the South Island of New Zealand. Spatial prospectivity models have been developed as part of this resource assessment process, using computer based statistical pattern recognition techniques to delineate areas that are prospective for mineral deposits and to test deposit genesis models. Digital GIS data-sets of mineral occurrence were correlated against geology and exploration information. The distribution of mesotherrnal shear zone gold deposits in the Reefton Goldfield, were examined against geological data-sets from both the regional (QMAP) and local prospect-scale mapping. Weights of evidence analysis generated a correlation matrix that highlights relationships and degrees of association that might otherwise not normally be recognised.   Mesothermal shear zone gold deposits have strong positive spatial correlations with Greenland Group host rocks and areas with moderate to high quartz vein densities; moderate-strong positive correlation with regions <500 m from folds, with regions <600 m from faults and five to eight kilometres from granite contacts; moderate correlations with Ntrending fault and fold segments; and no/weak/poor correlations with fault intersections, fold-fault intersections, bends in regional structures and magnetic and radiometric data. The regional and prospect scale data sets give different results, with the more detailed prospect scale mapping giving generally better correlations. This emphasises the value of detailed geological mapping in the exploration process.   Maps generated by prospectivity modelling consistently highlighted areas of known mineralisation and generate targets where follow-up investigation is warranted. The prospectivity per unit area provides a measurable value that should change as new information comes to hand and, in addition to highlighting targets, can be used to measure the impact of increased exploration expenditure and assess the effectiveness of exploration investment.

Jan 1, 2001

By D N. B Skinner, R L. Brathwaite, M S. Rattenbury

The Institute of Geological and Nuclear Sciences Ltd has carried out a mineral resource assessment of the Coromandel region, one of the most mineral-rich regions of New Zealand. The assessment focussed on metallic minerals and clays, because these are the main commodities that have potential for increased production and export from the region (and from New Zealand).   Three steps were used in the assessment: 1) development of mineral deposit models, 2) comparison of the models with regional geology, structure, geochemistry and past mineral production to estimate the number of undiscovered mineral deposits, and 3) application of grade-tonnage models to determine the quantity and value of the known and undiscovered resources. In step 1, descriptive and grade-tonnage mineral deposit models were developed for 11 different types of mineral deposits: ò     Low-sulphidation andesite-hosted epithermal Au-Ag ò     Low-sulphidation rhyolite-hosted epithermal Au-Ag ò     High-sulphidation quartz-alunite epithermal Au ò     Porphyry Cu-Au-Mo ò     Andesite-hosted polymetallic veins adjacent to mineralised porphyry stocks ò     Zn-Pb-Ag skarn ò     Cu-Ag skarn ò     Hot spring Hg ò     Shoreline placer Ti ò     Rhyolite-hosted halloysite clay ò     Volcanic-related kaolinite clay   Step 2 was aided by a geographic information system (GIS) assembled from a number of digital spatial data sets including: a digital elevation model, an aeromagnetic map (from open file mining company data), a geological map (from the GNS QMAP project), location of areas of hydrothermal alteration, locations of mineral deposits (from the GERM database), stream sediment geochemical analyses (from the REGCHEM database), and a lineament map derived from satellite remote sensing data and the digital elevation model.   Based on May 2001 commodity prices, potential resources estimated for the 11 mineral deposit and grade-tonnage models total NZ$22 806 million for the metallic minerals, NZ$1000 million for halloysite clay deposits and NZ$57 million for kaolinite clay deposits.

Jan 1, 2001

By P T. Stoker, A Allman, D P. Carville

Classification of mineral resource estimates is one of the most important responsibilities of the Competent Person. In recent years, classification decisions have been driven more by the detailed block-by-block attributes generated by the now widely applied geostatistical estimation methods, and less by a general geological overview. This is increasingly resulting in æspotted dogÆ outputs, in which blocks of Inferred Resources or unclassified material separate blocks of Measured and/or Indicated Resources, or individual drill holes are surrounded by annuli of Measured and Indicated Resource blocks. Not only are such outputs potentially misleading, since they ignore fundamentals such as continuity of geology and mineralisation between drill holes and the imprecise nature of resource estimation, they can also cause substantial problems for engineers undertaking mine designs and estimating ore reserves, particularly for underground mines. Competent Persons for mineral resources must keep in mind the purpose of their work, and should use their experience and judgement to avoid or smooth out æspotted dogÆ classifications, providing a result commensurate with the level of geological and resource estimation confidence. For their part, ore reserve Competent Persons must understand the resource estimation and classification process, and should question resource classifications that are not consistent with the level of geological and resource estimation confidence.

Jan 1, 2006