Search Documents

By Richard J. Robbins

Mechanical raise and tunnel boring are new techniques to most of the mining industry. Coal, salt and potash have been bored economically, but until recently boring machines were not designed specifically for rock boring in underground mining. The construction industry has led the field of rock boring since 1854 when the first tunnel boring machines built by James S. Robbins and Associates went to work at Oahe Dam, South Dakota. Since that time the company has built boring machines for tunneling through ground conditions varying from cohesionless soil to hard rock, and in diameters ranging from 7 feet to 36 feet 8 inches. It is natural that the construction industry got the jump on mining with the use of mechanical rock boring equipment. Mines have looked for the long range answer to problems of underground excavation and they have chosen proved and established techniques they expect to employ for the next ten or twenty years. The mine development was laid out to accommodate these techniques.

Jan 1, 1964

By A. M. El Shafey, Ahmed W. Hussein, Ibrahim M. Gaafar, Mona M. Fawzy, Mohamed Diab, Mohamed S. Abu El Ghar

The Quaternary stream sediments of the Diit area, southern Red Sea coast, Egypt, were mineralogically studied for their content of economic heavy minerals. The study area covered approximately 450 km2 and included three main parts: Wadi and Delta Diit, as well as Diit lens. The mineralogical investigation revealed that these sediments contain considerable amounts of placer ilmenite, magnetite, zircon, sphene, apatite, garnet, and rutile. Also present, in minor or trace amounts, are uranothorite, monazite, xenotime, fergusonite, khatyrkite, and gold. The magnetic fractionation tests, supplemented with the XRD and SEM mineral analyses, indicated the presence of Fe-oxide minerals as wuestite, hematite, and maghemite accompanied with magnetite as products for hand magnet separation. Ilmenite separation was carried out using a high intensity magnetic separator at a current of 1 A, while the paramagnetic minerals (e.g., garnet, pyroxene, amphibole, epidote, monazite, xenotime, and fergusonite) were separated as magnetic fraction at a current of 3 A. The non-magnetic minerals (e.g., zircon, apatite and rutile, uranophane, uranothorite, gold, and khatyrkite) were obtained at 3 A current. On a mineralogical and geochemical basis, the present work suggests that Diit stream sediments should be considered as a potential source for Ti, Fe, Zr, Zn, and Cu after the physical upgrading processes for concentrating the minerals carrying the aforementioned economic elements.

Jan 21, 2022

By Jay F. Colinet

Coal workers’ pneumoconiosis (CWP), commonly known as black lung, is caused by the inhalation of respirable coal mine dust and is a disabling and potentially fatal lung disease with no cure. Historically, CWP has taken a tremendous human and financial toll in the US coal mining industry. Recent health surveillance data indicates that CWP continues to occur at elevated levels. Respirable coal dust exposure must be controlled to prevent the development of CWP. The Pittsburgh Mining Research Division of the National Institute for Occupational Safety and Health (NIOSH) conducts laboratory and mine-site research to identify control technologies that can be used to successfully reduce respirable dust levels. Various technologies, using multiple methods of control, can be applied in order to reduce dust levels. An overview ofCWP’s impact and a general methodology for controlling respirable dust in underground coal mines are discussed in this paper.

Jul 30, 2020

By Konrad J. Banaszak

At least for the time being, these seems to be general but not universal agreement that Mississippi Valley type ore deposits formed entirely or in major proportion from heated connate brines (e.g. 1) Even with that agreement, major questions remain. I will present a coherent geochemical model and look at alternative views in the context of that model. The pattern of the following discussion is 1) the general geochemistry of the ore fluid, 2) the density-temperature relations and possible mechanisms of flow of those fluids, 3) the mechanisms of transportation and deposition of the ore minerals, and 4) a summary of a coherent model of genesis. The data equivocally define much about the deposits. The answer is still elusive.

Jan 1, 1979

By Syd S. Peng

According to accident statistics (l, 2), roof fall accidents occur quite frequently at the intersections of underground? openings and account for up to 30% of the roof fall fatalities. But this figure will certainly go up considerably if roof falls not associated with any fatal accident are included in the analysis. Unfortunately, nonfatal roof falls are seldom documented. In the underground coal mines, there are two types of entry intersections. One is the three-way (V type) and the other is the four-way (T type) intersections. A three-way intersection occurs whenever the mainline track haulageway turns at an angle into a section haulageway. The four-way intersections by far the most common type in the U.S. under-ground coal mines are formed by the intersections of two entries which are oriented perpendicular to each other or by the intersections of entries and crosscuts. However, crosscuts are frequently driven at an angle to the entry to facilitate machine movements. The four-way intersections formed by this method of crosscut development are angled. At the intersection of two underground openings, the diagonal roof span is wider than the width of each individual opening. This is one of the major reasons why roof falls occur more likely at the intersections than in the entry between pillars. Consequently, special intersection support plans are usually employed (Figs. 1 and 2) for intersections. The most popular practices are to decrease roof bolt spacing 1 ft. less than or to increase roof bolt length 1 to 2 ft. longer than those employed in the entry between pillars (3). The increase in bolt length or decrease in bolt spacing can be applied to all of the bolts in the intersection or employed only for the strategically located bolts depending on the individual mine practices. These rather generalized practices seems to be adequate for some areas but in many cases inadequate for others. Occasionally, the neighboring two lines of chain pillars are staggered such that the crosscuts in one row of chain pillars face the centers of the chain pillars in the neigh-boring rows. This layout forms T-type three-way intersections which are also inadequate for most weak roofs (3, 4). A study was therefore initiated to develop special techniques for intersection supports. The first phase of the study was the analysis of the stress fields for the underground entry intersections. A three-dimensional stress analysis was necessary for this purpose. Unfortunately, the three-dimensional problems of complicated boundary conditions are beyond the existing analytical methods. The three-dimensional finite element method (FEM) was therefore employed in this study. In the analysis, square pillars of 40 feet wide and an entry height of 8 feet were assumed while entry widths varied at 14, 20 and 26 feet. This model was selected to simulate the mine where roof falls data were collected. The second phase of the study was the collection of field data. The sizes of the roof falls including heights, lengths and widths were collected and analyzed. In the third phase study, the results of the first and second phases were compared and discussed. The analysis of field data revealed an arching zone within which roof falls occurred. The arching zone above an entry obtained empirically was compared with the calculated stress contours. Assuming that the bolts must be anchored in the rock strata outside the arching zone, the preferable systems of bolting were proposed. Also the amount of pretension required to inhibit sliding between layers was discussed.

Jan 1, 1978

By P. K. Parhi

The extraction of nickel has been carried out by the hollow fiber membrane technique using D2EHPA as the mobile carrier from the manganese nodule leach liquor after separation of Cu(II), Zn(II) and Co(II). The experiments were designed according to central composite design (CCD), which is a response surface methodology. The process parameters used for the experimental design were: pH, concentration of D2EHPA in the membrane phase, flow rate and H2SO4 concentration in the strip solution. Based on the analysis of variance, a reduced quadratic model was found to best fit the experimental data. The process parameters were optimized to maximize the nickel flux and the optimized conditions were flow rate: 630 mL/min; pH: 6.37; D2EHPA: 1.15 mol/L (1,150 mol/m3) and H2SO4: 2.39% (430.2 mol/m3), for a maximum nickel flux of 7.08 x 10-5 mol/m2.s, which was in good agreement with the actual Ni flux of 6.99 x 10-5 mol/m2.s.

By M. Kuchta, S. Iverson

INTRODUCTION Underground blasting with perimeter damage control can reduce the requirement for loose rock scaling and reduce the risk of ground-fall injury. In previous work Johnson and associates (2010) from the National Institute for Occupational Safety and Health (NIOSH) developed a rock blasting perimeter damage and control design method included in the DRIFT software tool (NIOSH, 2018). This blast design software tool utilizes current methods of perimeter blasting with the added design element of a buffer row coordinated with the perimeter row to reduce perimeter damage. The coordination is in applying one of several blast damage models to calculate the damage extent for each production, buffer, and perimeter blast hole in the design. The calculated damage is then applied to the spacing between the blast holes. The basis of the buffer row design is the practical damage limit and is supported in this paper with computer models of signature blasts and full blast rounds using PFC2D (Itasca Consulting Group, Inc., 2018). Practical damage limit The practical damage radius (Rd) is not to be confused with burden. The practical damage extends toward the burden side and inward into the rock mass. For all practical purposes, the practical damage radius equals one half the burden (Hustrulid, 1999). The maximum extent of radial crack damage around a blast hole (Rcrack) and the maximum extent of radial crushing damage (Rcrush) are illustrated in Figure 1. A “practical” radius of damage (Rd) lies between the crushing limit and the cracking limit. The “practical” damage means that if the rock mass lying outside of the practical damage circle were removed, the rock remaining within the circle would easily break apart. Blast pressure and strain Work by Johnson (2010) and associates included signature blast tests in large concrete blocks. A signature blast test in concrete as exampled by strain data in Figure 2 was designed to monitor the dynamic strain at incremental distances from a single fully coupled blast hole, measure crushing and radial cracking extent by wire-sawing to expose the damage, and relate the damage to overbreak that is common in underground blasting. The initial slope or rising strain as the stress wave passes by the strain gages shows very high strain and strain rates close to the single blast hole. Since the derivative of strain versus time is strain rate, a line tangent to each of the strain curves at the maximum strain rate is drawn and the strain rates identified. The high strain rates were then plotted on a semi-log in Figure 3 to show a linear trend. The strain rate is greater than 100 s-1 within 20 cm from the blast hole for the signature blast experiment. The strain rate at the blast hole wall is projected to be 300 s-1. Figure 4 illustrates the damage in the NIOSH block exposed by a wire saw cut.

Jan 1, 2019

By J. Herbst, J. Groppo, A. Noble, R. Q. Honaker

"Coal and coal byproducts produced annually contain a sufficient amount of rare earth elements (REEs) to meet current U.S. demand. The REEs exist in the form of minerals, ion-adsorbed elements associated with clays, and chemically bonded elements within the organic coal matrix or host mineral. Researchers at three universities collaborated to evaluate the effectiveness of existing physical and chemical concentration processes for the recovery of the REEs. The efforts found that physical separation processes can increase the total REE content in the thickener underflow material collected from a Central Appalachian coal cleaning facility from around 300 ppm to values greater than 17,500 ppm on an ash basis. Leaching followed by solvent extraction was found to be the most effective to recover the REEs from coarse middlings materials collected from multiple coal basins, as indicated by recovery values exceeding 80 percent. Based on material characterization data and process evaluations conducted for several potential feed coal sources, economic recovery of the REEs will require byproduct production of both clean coal and REE concentrate using a process flowsheet that is unique for each source. IntroductionRecent studies initiated by the National Energy Technology Laboratory showed that U.S. coals contain significant amounts of rare earth elements (REEs), suggesting that rare earth minerals (REMs) and/or REEs can be produced as byproducts (Ekmann, 2012). According to the report, the richest source of REEs is the Central Appalachian coal. At present, there are 208 coal preparation plants located in the region consisting of areas within the states of West Virginia, Kentucky, Pennsylvania, Virginia, Alabama and Tennessee, with a total capacity of 166,495 t/h, or more than 1 Gt/y (Fiscor, 2014). If only a portion of these plants are retrofitted with advanced separation processes, the U.S. coal industry would become a significant producer of REE concentrates as byproducts. An inherent advantage of becoming a byproduct producer of REEs is that no mining cost needs to be part of the production cost."

Jan 1, 2017

By Michael E. Karmis

New and developing communication systems en-able underground miners to, not only connect to the surface from an increased communication coverage area, but also to be discovered in the event of an emergency. Communication and tracking systems are required by the U.S. Mine Safety and Health Ad-ministration (MSHA) regulations, aiming to enhance health and safety and routine production in underground operations. Modeling a mine?s potential communication coverage area will increase overall coverage and efficiency of the communication network itself. Modeling the propagation of wireless communications enables ideal broadcast locations to be found when designing a communications network. Strategic placement of broad-cast devices results in a reliable communication network that can better withstand disruption in daily operation and during a time of emergencies. Research on wireless communication in mines has been ongoing since 1922, when the U.S. Bureau of Mines performed experiments in its experimental mine in Bruceton, PA (Schiffbauer & Brune, 2006a). Ac cording to Dobroski and Stolarczyk (1982), ?as early as 1922, Bureau of Mines experiments showed that radio propagation in mines was possible but not practical.? In 2006, the underground communication technologies available to the mining industry had inherent problems that limited communication capabilities. Because harsh underground mine environments significantly reduce line of sight and propagation range and introduce power and safety concerns, the overall effectiveness of underground communication technologies were limited. After several coal mining accidents in early 2006, the U.S. Congress responded with the Mine Improvement and New Emergency Response (MINER) Act, enacted

Jun 1, 2010

By W. A. Rickelton

Trialkylphosphine sulphides, in contrast to their well known oxide analogues (1,2,3,4), have received comparatively little attention as metal extractants and previous studies have been biased toward analytical rather than commercial solvent extraction applications (5,6,7). The sulphides are soft Lewis bases and only from complexes readily with the limited number of metals in the periodic table which can be classified as soft acids (8) e.g. Ag+, Hg2+ and Pd2+. Consequently, these compounds tend to be more selective than the broad-spectrum, hard-base, phosphine oxide extractants such-as TOPO (trioctylphosphine oxide). The purpose of this paper is to describe a potential application of one phosphine sulphide, CYANEX® 471X extractant, in the selective recovery of silver from base metal sulphate solutions. CYANEX 471X is triisobutylphosphine sulphide (TIBPS).

Jan 1, 1984

By S. Gaillard, E. Cauda

"Diesel particulate matter (DPM) is an occupational health hazard in underground mines. It generally occurs in the submicrometer size range and is often present in the mine atmosphere with significant concentrations of dust particles that tend to occur in the supramicrometer size range. As dust can interfere with analytical methods to measure DPM, it is often removed from a sample stream using an impactor-type size selector such as the DPM impactor (DPMI). Because the DPMI physically removes oversized particles from the stream, its performance may be gradually reduced with aging. Sharp-cut cyclones (SCCs) are an alternative size selector for DPM sampling applications, with a major advantage that, by design, they should not be susceptible to rapid aging. This paper presents the results of a field study designed to compare the performance of aged versus new/clean DPMIs and SCCs in an underground mine. DPMI aging resulted in clogging of the device and, eventually, a reduction of its effective particle cut size, but when sample flow rate was maintained, DPM sample mass collection was not affected until significant aging had occurred. Under the conditions of this study, the effects of SCC aging were observed to be minimal at the end of the study period. IntroductionSubmicrometer-sized particles are increasingly recognized as significant respiratory health hazards (Cantrell and Watts, 1997; Kenny, Gussman and Meyer, 2000; Ristovski et al., 2012). Diesel particulate matter (DPM) represents a major source of submicrometer particles in both public and occupational environments (Kittelson, 1998; Abdul-Khalek et al., 1998). Relative to other occupational groups, underground miners can have some of the highest DPM exposures due to their work in confined spaces where large diesel equipment is used (U.S. Environmental Protection Agency, 2002; Grau et al., 2004). DPM largely consists of solid elemental carbon (EC), commonly known as soot, and organic carbon (OC) that may be sorbed to EC particles (Kittleson, 1998; Abdul-Khalek et al., 1998). EC and OC can be measured by thermal-optical methods such as the U.S. National Institute for Occupational Safety and Health (NIOSH) 5040 standard method (Birch, 2016), and their sum is referred to as total carbon (TC). While the complex nature of DPM does not allow for its direct measurement, both TC and EC have been accepted as suitable surrogates for monitoring occupational exposures to DPM (Noll et al., 2007; Birch, 2016)."

Jan 8, 2018

By Christopher R. Winter

Mining companies have sharpened their refocus on their tailings management strategies in recent years. Mining companies with tailings storage facilities that use the upstream construction method have been challenged to track the evolution of industry standards, assess risks, revise design, and communicate design revisions with regulators. While many aspects of best practices and industry standards have evolved in recent years as an attribute of continual improvement, the controlling standard in the design of many upstream dams is understanding the foundational strengths of hydraulically deposited tailings. Following best practices and industry standards, Hibbing Taconite Company managed by Cleveland-Cliffs, began the re-evaluation of foundation strengths underlying a system of upstream dams at the company’s iron ore mine tailings storage facility in northern Minnesota. Initial steps in the re-evaluation require reanalysis of design parameters and recommendations by the Engineer of Record to the Owner, which was followed by a series of meetings with the Technical Review Board to determine an initial path forward. Once a path forward and preliminary design parameters were determined, the Owner engaged with the State Dam Safety Engineer to discuss and seek approval of the plan. With continuous regulatory engagement throughout the process, further refinement of the design parameters for the hydraulically-placed tailings foundations underlying upstream dams began with field and lab geotechnical investigations. Following a review of risk assessments and trigger actions response plans, Hibbing Taconite revised its tailings storage facility operating plans and budget for the coming years. Based on the findings of the re-evaluation, reanalysis, and refinement of parameters, a paradigm shift was realized with the hydraulically placed tailings foundation strengths underlying the upstream system of dams. This paper explores the path that the Hibbing Taconite Company followed to understand the paradigm shift and construct downstream improvements. The plan involved tailings re-characterization, dam design revisions, operating plan reconciliation, budget revisions, wetland permitting, dam safety permit amendments, storm water prevention plans, borrow materials studies, new concrete decant structures and the pursuit to recognize and be consistent with industry standards.

Feb 1, 2024

By Diler Katircioglu-Bayel

This study aims to investigate the effect of combined mechanical and ultrasonic milling on the size reduction of talc. Firstly, the talc sample was wet ground in a stirred media mill for five different times (30, 60, 90, 120, and 150 min), and the optimum result was subsequently achieved with treatment by ultrasonication. The effects of amplitude (20, 35, and 50 μm), solid content (2.5, 5, 7.5, and 10%), and sonication time (60, 120, and 240 min) on the sizes of the final product were investigated. The pre-milling by wet grinding caused a decrease in the grinding resistance of talc. Sequential ultrasonic treatment, which was applied to the talc sample, generated smaller particles in comparison to those acquired by stirred media milling alone. Experimental results were assessed based on the product particle size (d10, d50), reduction ratio, and specific energy consumption. Submicron particles prepared by ultrasonic treatment were perfectly stable compared to stirred media milling alone as investigated in terms of particle size. In addition, the effects of mechanical and ultrasonic milling on structural properties of talc particles were characterized by XRD analysis.

By D. C. Seidel

The role of surface charge in soluble salt flotation, which was developed in Part 1, is extended to relate the theory to the specific phenomena of KCI- NaCl separations. Temperature-collector solubility relationships, metal ion activation, and particle size effects are discussed.

Jan 1, 1967

By Trenton Cohen, Joseph McDivitt, Shimi Tzobery, Joseph Sinacori, Scott Zylstra

The 2-mile Beach Interceptor Sewer Tunnel was constructed in 1954 to then-current mining and construction standards. Due to its lifespan and deteriorating condition it is now being stabilized and rehabilitated using conventional excavation and ground support. At its southern end, below the prestigious Three Arch Bay community, the original tunnel alignment passes under a historic landslide where the tunnel was sand-backfilled and capped by bulkheads in 1957 due to severe and caving ground conditions. Video footage of the existing 21- inch clay pipe showed that the pipe is severely damaged, which could potentially cause a catastrophic pipeline failure and sewage spill into the Pacific Ocean. This paper summarizes the thorough investigation and design process, tunnel realignment construction and monitoring, and the notable cooperation between all parties to overcome the project risks.

Dec 1, 2022

By Panshi Xie, Xicai Gao, Yi Luo, Youfu Zeng, Yongping Wu, Shenghu Luo

This research investigates roof deformation and failure characteristics, as well as mechanical interaction between the panels of the roof strata above two adjacent working faces in a steeply inclined coal seam. Physical modeling with photogrammetry measurement method has been employed in this investigation. The movement of roof strata and section pillar, as well as the stratum morphological characteristics, was quantitatively analyzed. Results show that the roof movement direction above the two panels has zoning characteristics, especially in the lower panel. Roof migration in the lower panel of the working face is larger than that in the upper panel. The roof to floor closure perpendicular to the seam direction is larger than the sliding along the seam. The maximum roof concave and convex bending occurred at the middle and upper parts of both panels; the roof bending in the upper panel mining area indicates a larger mining disturbance induced by lower panel mining. The void ratio contour of the lower panel is an asymmetrically arched shape, which is different from that of the upper panel area. The higher roof strata above the upper panel exhibit separation and breaking, whereas the lower roof exhibits compression due to mining in lower panel. The section pillar is compressed and slides slightly, which aggravates the mechanical interaction between the panels and increases the caving height of the roof over the lower panel and the periodic weighting intensity

By Lynn B. Hales

The Supervisory Computer System at Cities Service copper mine and concentrator at Miami, Arizona was installed at Pinto Valley in the spring of 1975. Design and specification [l] of the digital system was initiated jointly by key plant personnel at Pinto Valley and staff of Cities Service Research and Development Company. The Pinto Valley digital system [2] may be classified as a supervisory control system of hierarchical design. There are three fully independent satellite computers which retrieve and reduce the raw plant data from each of the three main operating areas - the primary crushing plant, the fine crushing plant, and the grinding and flotation plant. While the three satellite computers are core resident systems, the master computer is a disc-based operating system which also interfaces with a computer controlled on-stream x-ray analyzer system. Figure 1 illustrates the basic system configuration [3]. The software systems required to support a large system are quite diverse and vary greatly in function. The philosophy followed in dividing the software into three categories was designed to: 1) fully utilize existing process knowledge of technical staff; 2) delegate certain software tasks to outside sources already skilled and trained in software development; and 3) maintain final control over the design and operation of each system.

Jan 1, 1976

By Peter N. Blakey

The Kidd Creek orebody is a massive, base metal deposit with widths up to 600 feet and a strike length of 2,200 feet. The orebody dips eastwards at 70° to 80° and is amenable to sub-level open stoping. Five distinct zones (Fig.1) based on structural wall rocks and ore type parameters occur within the orebody. These zones are: Zone 1 - Mainly copper stringer ore Zone 2 - Massive pyrite ore Zone 3 - Massive sphalerite and chalcopyrite Zones 4 and 5 - Are banded and variable in nature Compressive strengths vary from zone to zone with an average of 22,000 p.s.i. and highs of 40,000 p.s.i. The mine is developed from a ramp extending from surface to the 1600 foot level and a 24 foot diameter, 3050 foot vertical shaft with main levels at 400 foot intervals. Sub-levels at 100 foot vertical intervals are driven from the ramp. transverse and longitudinal pillars to support the crown pillar left under the open pit. The layout allows an opportunity to enlarge or reduce pillar sizes and also to introduce fill on any horizon should conditions warrant. It also offers a large number of operating stopes spread through the various ore zones giving good ore blending characteristics. All ore from the stopes is handled through drawpoints using Wagner ST8 scooptrams with an average one way haul length of 650 feet.

Jan 1, 1976

By H. Verakis, M. A. Hockenberry, A. C. Smith, J. H. Rowland III

Four different types of fire suppression systems were evaluated in large-scale fire experiments to study the effect of air velocity on their effectiveness in extinguishing conveyor belt fires. The four different types of suppression system were water sprinkler, deluge-type water spray and two different dry chemical fire suppression systems. The large-scale fire tests were conducted with 1.8-m- (72-in.)-wide fire-resistant rubber belt that met the Mine Safety and Health Administration flame resistant requirement specified in Title 30, Code of Federal Regulations, Part 18, section 18.65 (also known as the 2G Flame Test). Each fire suppression system was tested at air velocities of 152 - 168 m (500–550 ft) per minute (mpm) and 411 - 457 mpm (1,350 - 1,500 fpm). Two tests were conducted at both air velocities for each fire suppression system. Both of the water-based fire suppression systems were able to suppress the fire to the point that a miner could extinguish it with a fire extinguisher. However, the amount of water needed to suppress the fire to the point where a miner could walk up to and extinguish any smoldering belting was greater than the current MSHA regulations required. MSHA regulations only require 10 minutes of water supply for a suppression system. In the test setup, neither of these systems would have suppressed the fire had the water been turned off to the system after 10 minutes. The dry chemical suppression systems produced mixed results. Dry chemical suppression system A did not suppress the conveyor belt fire at either air velocity. Dry chemical system B suppressed the fire at 152 mpm (500 fpm) air velocity, but produced mixed results at the higher air velocity. Details are presented on the large-scale fire test setup, arrangement of the fire suppression systems and conclusions regarding the effect of air velocity on fire suppression system design and performance.

Jan 1, 2010

By Stephen Semeniuk

Working with junior mining companies as a valuer, my experience with regulators is that simplicity works and the sales comparison method is the way to go. What I like about Mr. Ellis?s approach (as in his Table 7) is the integration of commodity prices with the timing of acquisitions and the implication of price changes in gold on the adjustment of individual project valuations. However, the sample gold-related appraisals in Ellis?s paper are pre-2008 transactions and readers should be made aware of the current market for such projects. Before moving on, to be noted is that the effective date of the Las Brisas appraisal (Ellis?s sample Appraisal 3) is Feb. 10, 2006; given that the subject value of Transaction 9, Choco 10 in Ellis?s Table 6 was listed as $353 million for a 95% interest in the con-cession, I am uncomfortable accepting that the acquisition was suddenly worth the adjusted value of $1,205 million (as given in Ellis?s Table 7). In some cases, illiquidity discounts can apply, and commodity-wise, in the one-month period between the acquisition in January 2006 and the adjustment to the Las Brisas conditions as of February 10, 2006, the indicated gold price change was only 41 cents/g ($12.60/oz); i.e., from $17.50/g to $17.91/g ($544.40/oz to $557/oz).

Jan 1, 2012