Search Documents

By Robert T. McKnight

"Traditional techniques for valuing resource projects companies have been primarily based on discounted cashflow methods (DCF) or by comparison to similar projects with an apparent market capitalization. Many resource projects are really forms of options to invest rather than a future cashflow stream. Employing the DCF method to value a resource project which is really an option to invest, can dramatically underestimate the real value of the project. The analytical tools required to evaluate options, while more complicated than the usual spreadsheets used for DCF, are becoming more easily available and usable by managers. This paper will discuss the background of options valuation and some of the tools which will make it easier for managers to estimate the value of projects and companies which have significant real option values.ResumeBob McKnight is a graduate of the University of British Columbia in Geological Engineering, supplemented by an MBA from Simon Fraser University. Following several years in the oil patch with Cities Service and Brascan, Bob returned to Vancouver in 1979 to work for Wright Engineers. He subsequently went on to work for Cassiar Mining, Getty Resources and Endeavour Financial before joining Pincock Allen & Holt Ltd. in 1998. His experience ranges from exploration to feasibility studies, financial evaluations of mining and oil & gas projects, due diligence, project finance, valuations and mergers and acquisitions. He has extensive international mining experience pertaining to such countries as Chile, Mexico, Uruguay, Thailand, Indonesia, Angola, Papua New Guinea, Kazakhstan.What are Options?Options have been around for centuries. They were familiar to Roman and Phoenician traders who were shipping cargoes from Mediterranean seaports. In the financial world, options are types of contracts that generally include the right, but not the obligation, to buy or sell a share, currency or commodity. The underlying commodity price or share price changes are assumed to be lognormally distributed. In this context, options are of two general types, ""call"" options and ""put"" options. Call options have the characteristic of having the right to buy a tradable commodity or currency at a predetermined price for a specified period of time. For the owner of call options, they become more valuable as the price of the underlying commodity increases. For the seller of call options, these options become an increasing liability as commodity prices rise, since there is the obligation to sell the commodity at a predetermined (perhaps lower-than-market) price. This characteristic of call options recently became high profile with the sharp rise in gold prices last year. The value of gold call options sold by certain producers increased their associated liabilities to the point where margin calls were made."

Jan 1, 2003

By A. J. Hargraves

"It is difficult to quantify comparatively the gassiness of a property. The most common index to gassiness, cubic feet of gas per ton of coal mined, is very arbitrary and does not take into account the geological setting nor the mining operation. The gassiness of a virgin coal in situ can be assessed, but no method is precise and the most accurate methods involve prolonged field and laboratory experiments. In general, gassiness increases with depth. Whereas 'gas' normally implies methane, other gases such as nitrogen, carbon dioxide, etc. may be present in seam gas also. The inflammability of methane is a problem, particularly the explosibility of a methane-air mixture; also oxygen dilution is involved in high gas concentrations and some gases are poisonous even in low concentrations. Cross measuring into a virgin seam is usually not as troublesome as development in the seam, where narrow openings may require strong ventilation to dilute gases exuding from the face and sides. Total extraction presents problems of gas from the working seam, or from adjacent seams, particularly at the return side, or of gas-laden air from the goaf streaming out or sometimes surging out intermittently, again on the return side. In pillar extraction or longwall retreating special roadways may be required to allow the side-to-side and end-to-end flushing of the goaf which is somewhat inherent in longwall advancing. Layering may occur, particularly where ventilation conditions are not brisk. Outbursts of gas from adjoining seams may be induced by sudden rupture of roof or floor in caving workings. Outbursts of coal and gas from the working seam may occur, mostly in development work, under special environmental circumstances. Gas problems may be reduced or eliminated by predrainage of gas ....:. rarely successful from the working seam - usually undertaken from adjoining seams prior to escape of gas released by caving. The ideal solution - general predrainage of gas to the surface from measures prior to mining - has yet to be accomplished. • In the planning of gassy mines it is possible to make an assessment of gas contained in the seams and to estimate what proportion will be released into the mine air, but emission of gas into mine workings is never steady and at present there is no better planning criterion than experience at the mine next door!"

Jan 1, 1973

By P. Gautier

Current feedstock in the aluminum hot forging processes can be used in the cast or extruded forms. The microstructural variation between as-cast and extruded materials could result in different mechanical properties and corrosion resistance for hot-forged products. Corrosion performances were examined for forged parts produced by two AA6082 feedstocks at different conditions using the following corrosion tests: open circuit potential, anodic polarization, salt spray exposure and corrosion fatigue. With the help of optical and scanning electron microscopes, metallographical investigations were carried out on cast-forged and extruded-forged materials before and after corrosion. The corrosion behavior of both materials was compared in both as-forged and aged tempers. Results show that there is no significant difference in the corrosion performance for final cast-forged and extruded-forged products.

Jan 1, 2011

By J. A. Finch, M. Mimezami, M. S. Hashemi A.

The adsorption of magnesium and calcium ions on sphalerite and pyrite is discussed. These ions are common in process water and often considered be detrimental in sulphide flotation. The study attempts to characterize the adsorption mechanism, which has been less studied than the oxide system. Generally for oxides metal ion uptake occurs when cations are hydrolyzed. Our findings reveal that magnesium and calcium adsorb on sulphides at pH below hydrolysis, but adsorption is not chemical. At higher pH, charge reversal occurs that does correspond to presence of hydrolysis products. Advances

Jan 1, 2009

By G. R. Guillet

Important resources of kaolin, refractory clay and lignite, not found elsewhere in Ontario, occur with quartz sand of glassgrade quality in unconsolidated Mesozoic sediments of the Moose River Basin in northeastern Ontario. These materials comprise the Mattagami Formation of Lower Cretaceous age, which overlie in some places a thin Jurassic unit and a thick Paleozoic section, and underlie as much as JOO m or more of glacial and marine sediments and a uniform capping of muskeg. The Mallagami Formation is known from deep boreholes to exceed 100 m in thickness and to consist of two phases: an earlier Type A unit of dark-coloured carbonaceous clays and lignite, and a later light-coloured (Type B) unit of kaolin-bearing quartz sands and bright-coloured refractory clays. Remoteness, poor access, and difficult physical environment have inhibited the exploration and development of these resources.

Jan 1, 1984

By Frank Ebbutt

Introduction The property of the Britannia Mining and Smelting Company, Limited, is situated on the east side of Howe sound, about six miles from its head. It is roughly thirty miles by water from Vancouver, one of the important ports of the Pacific and the industrial and financial centre of British Columbia. Howe sound is navigable for ocean-going vessels and Britannia Beach is a daily port of call for the commodious boats of the Union Steam-ship Company, sailing from Vancouver. Few mines are so ideally situated or have so many or varied natural advantages. Copper was first found on Britannia mountain in 1888, by Forbes, but it was not until 1898 that five claims were staked here by Oliver Furry, a trapper. It is from these claims that the major production during the past thirty years has come. In 1900 the Britannia Copper Syndicate was formed and development of the property was commenced. In 1903 the late Grant B. Schley obtained control, and through his efforts the Britannia Mining and Smelting Company was organized in 1908 as a subsidiary of the Howe Sound Company. Since that time, a persistent and progressive policy has been followed, which has resulted in a prolonged and profitable operation. The country in the immediate vicinity of the mine is marked by strong relief, with mountains rising abruptly from tide-water to elevations of 5,000 feet and more. Two broad transverse valleys deeply dissect the area. These are the valleys of Britannia creek and Furry creek. The region has under-gone prolonged and relatively recent glaciation. Over much of the surface there is deep overburden and dense vegetation. The geology of the mine and vicinity has been described in reports by S. J. Schofield (1), H. T. James (2), J. G. Barry, and others (3). The present writer is in accord with much of this literature on Britannia, but during recent years, extended observations made underground have shown that the 'quartz porphyry', or 'mine porphyry', of several of the earlier writers is not the host rock to the commercial mineralization; and he contends that the mineralization occurs in highly altered phases of a complex series of ruffs, flows, and pyroclastics and their autoclastic metamorphosed products.

Jan 1, 1935

By Kremena Dedelyanova

The paper presents research of mechanism for the creation of air bubbles in vibratory a column flotation machine. Factors are discussed that influence the increase in the duration of the bubble in the area of contact with the mineral particles. Formulas are derived for the parameter effect of vibrations, applicable to the design of flotation machine. The collision efficiency of the bubbles in a vibratory column flotation machine is determined.

Aug 1, 2013

The mining industry has generally been slow to apply ion exchange processes to hydrometallurgical applications even if ion exchange offers an ideal solution for a particular problem. Two notable exceptions are in gold and uranium recovery. The largest application of ion exchange in the metals processing industry has been the use of resin-in-pulp (RIP) for gold recovery as an alternative to activated carbon. Iron is a ubiquitous impurity in hydrometallurgical solutions. In many cases, bulk removal of iron from the process solutions is accomplished by precipitation. However, precipitation for iron control is often accompanied by losses of base metals by co-precipitation. Increasingly, the option of ion exchange for removal of smaller amounts of iron from process solutions has been favoured. A number of applications have been developed and proven at the commercial scale for the removal/control of iron from a range of metal processing solutions. This paper provides an overview of the application of ion exchange for iron removal from a range of metal processing operations, including Cu, Ni and Co solutions. A number of case studies are provided which review operational and resin regeneration strategies and the impact upon the commercial operation of metal processing with improved iron control.

Jan 1, 2006

By R. Tomás, J. B. Serón, M. Romana

The Slope Mass Rating (SMR; Romana, 1985) geomechanics classification was developed as a sequel of Bieniawski’s Rock Mass Rating (RMR) system, which was almost impossible to use in slopes due to the extreme range of the correction factors (up to 60 points of a maximum of 100) and to the lack of definition of them. A detailed quantitative definition of the correction factors is one of the advantages of SMR classification. During the last thirty years the use of SMR system has been extended to many countries from the five continents and, thus, it is time to review the most interesting developments. Both RMR and SMR are discrete classifications, depending on the values adopted by the variables that control the parameters. This can cause major changes in the parameters value due to small differences in the variables value, with changes in the final rock mass assigned quality. On the other hand, geomechanics quality indexes are extremely biased. To avoid this problem, some authors have proposed continuous functions for SMR. This classification has been also adapted for its application in heterogeneous and anisotropic rock masses, for high slopes, for is application trough stereographic projection and Geographical Information Systems, has been used as susceptibility rockfall parameters and has been included in the technical regulations of several countries. Additionally, some open access computer tools have been developed for the computation of SMR. Consequently, this paper reviews: 1) the most important modifications and adaptations of slope classifications which derive directly from SMR; 2) the use of SMR throughout the world; 3) many significant papers on slopes analysed with SMR all over the world; and 4) future trends in the use of SMR.

Jan 1, 2015

By J. W. Coetzee, H. E. Deist

Carbon-in-pulp (CIP) and Carbon-in-leach (CIL) processes are used extensively in the gold mining sector to recover aurocyanide from solution. This paper discusses the modelling of these operations, using various simplifying assumptions, in order to simulate the effect of changing operating conditions on the dynamics of the system. It is assumed that the adsorption and leaching rates are a function of concentration difference between the source phase and recipient phase. The simulation was set up using Matlab's Simulink interface. Plant variables are solved using a medium scale Newtonian search algorithm in Matlab, where the differences between the actual and predicted plant outputs are minimized on a continuous time-line.

Jan 1, 2005

By R. Bonifaz, R. Subiabre

The Chagres Smelter, part of the Anglo American plc group, situated 80 Km north of Santiago in Chile, completed a series of operational improvement in 2005 resulting in an optimum capacity in its operational units. At present the Chagres Smelter has developed an operational strategy which seeks to reduce bottle-necks in the production process. In this way we have managed to lower operational cost, decrease energy consumption and maximize the capacity of the Acid, Oxygen, and Smelting, Converting, Refining and Casting units. A constant review of international benchmarks together with continuous staff improvement and the latest smelter technology have combined to place Chagres among the finest smelting works in the world. In response to environmental challenges, we have studied various options for investment that will yield a suitably profitable business to benefit both Anglo American and Chile. The most relevant technical indicators are: energy consumption=6,3 GJ/ton fine copper (1st in the world), intensity of smelting rate in Flash Smelting unit of 6,900 ton of copper concentrate/m2 of furnace area (1st in the world) and to be one of the top five smelters in achieving the lowest direct cash cost .

Jan 1, 2007

By S. Fabich

Since the very beginning of Polish copper mining, special consideration of sink shaft techniques through highly saturated Cenozoic rocks was required. Shaft freezing has been chosen as a method to consolidate these rocks. Due to the rock mass structure and water inflow potential, shaft sinking without freezing was considered dangerous. In the course of time, rock mass freezing technology and experience were evolved and this technology became safer and more reliable. New techniques appeared not only in the technical method of freezing, but also in the matter of designing. Computer aided techniques allow engineers to make a detailed analysis and view of freeze wall development. Nevertheless it is important to determine basic thermal rock properties. In this paper, the evolution of knowledge and engineering experience taken in Polish copper mines and current knowledge level in that matter were shown.

Aug 1, 2013

By Euler De Souza, J. Daniel Stinnette, Julian Varaschin

"This paper outlines some of the factors that affect the airflow required for the ventilation of modern diesel-powered equipment and of electric equipment and examines how they can be applied in determining reasonable ventilation rates for Tier IV compliant diesel equipment and for electric equipment operating in mining environments. Airflow calculations for modern diesel-powered equipment and for electric equipment are more complex and must be based on a combination of factors that are unique to each mine. Methodologies for ventilation rate determinations for each case are proposed in this paper.INTRODUCTIONTraditionally, airflow requirements for production and support equipment operating in underground mines have been determined by multiplying the vehicle power by a ventilation rate that was either mandated by regulations or determined empirically from known quantities. However, in light of the drastic reductions to diesel equipment emissions mandated by the US EPA Tier IV and EURO Stage 4 regulations, there is still a great deal of uncertainty in the underground mining industry among those responsible for the ventilation of planned new mines or the expansion of current mines. The question remains, what ventilation rates should the ventilation system designer apply for modern diesel equipment?Also, given the ongoing development of grid/battery-electric equipment and active construction of fully electric mines, it has become critical to determine adequate airflow rates per brake kilowatt of electric engine power. One of the most important criteria for determining ventilation rates for electric equipment is the amount of heat they generate, as this is the most significant emission produced by electric equipment (which do not produce exhaust gases or particulates). Therefore, ventilation rates required to dissipate heat from electric equipment must be suitably determined for all electric vehicle fleets operating in underground mines."

Jan 1, 2019

By Reginals W. Burroughs

Diatomaceous or infusorial earth, also called diatomite; fossil meal, or kieselguhr, is derived from the lowest form of vegetable life, the unicellular alga:. It consists of the siliceous remains of extremely minute aquatic plants, which exist in both salt and fresh water. Light i~ a prerequisite to their development. These very small particles secrete silica in much the same way that molluscs secrete lime to form their shells. The diatoms at death sink to the bottom of the body of water in which they lived, and the organic matter gradually decays and is washed away, leaving the skeletons. Thousands of years are required by this means to develop bed5 of sufficient thickness to be of commercial value. The siliceous remains vary in size according to the species, but all are very minute and, as a general rule, they can be identified only under a high-power microscope. Over one thousand types have been distinguished and named. They are all composed of a hydrous or opalescent form of silica, with silica content ranging from seventy to ninety-five per cent. Magnified, they present an attractive sight, a very fragile structure with many interstitial openings known as cells. Many of them consist of two parts, defined as valves, held together by means of a girdle. Certain species, belonging to the Pinnularia family appear as a long comb, in half longitudinal section. The spaces between the teeth are the cells. This particular genus is very common in Nova Scotian deposits.

Jan 1, 1928

By Martha Gellner, Lutz Wuschke, Hans-Georg Jackel, Urs A. Peuker

"Electric vehicles are an alternative to the existing combustion engine driven cars. According to the EU Battery Directive a substantial recycling rate of at least 50 wt.-% has to be met for aged batteries since 2006. Existing recycling techniques are based on energy intensive pyro- and hydrometallurgical process, which are not able to recover all components. Aluminum and lithium for instance are slagged. The EU-Project “ABattReLife” investigated possibilities for a mechanical processing in order to create a sustainable process and a closed material loop from grave to cradle. After a sufficient liberation of the Li-ion batteries, components like the doped carbon black fraction (mainly lamination of electrode foils), the separator foil and the housing material can comparatively easily be separated from the other components by screening and air sifting. The remaining mixture consists of anode and cathode foils which have a similar free-settling ratio and are more difficult to separate from each other. A second comminution and compaction step modifies the particle size and shape as well as the degree of delamination. These changes influence the density of the electrode foils in order to improve the separation efficiency. Yield and purity of the generated metal concentrates were parameters to show if the separation was successful. The specific energy consumption for the different methods of processing was estimated in order to benchmark the cost-benefit ratio for each one.The studies have been accomplished with a zig zag sifter (model TUBAF), a hammer mill (model HM 340 Jehmlich) and with a Petkus-Sifter. Finally a process flow sheet was developed for a Li-ion battery recycling plant in pilot scale."

Jan 1, 2016

By J-F. Magnan, M-A. Thibault, R. Boulianne, C. Gauthier, J-P. Gagné, G. Dufour

During the production of aluminium in smelters, the anodes used in electrolysis cells have to be replaced frequently. Anode butts are usually placed on anode trays for transportation and cooling, a practice during which Hydrogen Fluoride (HF) is emitted in large quantities. Covers developed in 2000 by Alcoa Deschambault to fit on the anodes trays were implemented, resulting in significant reductions of HF emissions. However, the covers are expensive to maintain and use short-life consumable parts. In January 2004, STAS and Alcoa decided to develop a more efficient design of cover, with lower maintenance costs and no need for consumable materials (like soft cushions). This paper presents a summary of the work performed to develop the new design as well as a summary of the test results.

Jan 1, 2006

By Chun-Sheng Liao, Chun-Hua Yan, Sheng Wu, Fu-Xiang Cheng

"INTRODUCTIONChina is providing more than 90% of the rare earth products consumed in the whole world. Acidic extractants are commonly used in the extraction separation of rare earths. Saponification of the acidic extractants by basic substances is usually necessary for the purpose of increasing and stabilizing their extraction capacity, and meanwhile inorganic acids are required for both scrubbing and stripping. Thus acids and bases are the main consumed chemicals, and the resulting salts are the main pollutants generated by rare earth separation processes. Currently, due to increasing environmental concerns in China, rare earth solvent extraction separation techniques are being developed to reduce both consumption and emission of chemicals, which is driving the developments on both theories and processes for solvent extraction separations.In the 1970s Prof. Xu et al. developed the Theory of Countercurrent Extraction (Xu, Li, & Yian, 1985). In recent years, the development of novel processes for rare earth separation has moved beyond the earlier theory. One rare earth separation process, the so-called hyperlink process, has been developed in the past decade and proven in industrial practice to dramatically reduce both the consumption and emission of chemicals during multi-component solvent extraction separations, and therefore is now widely used in the Chinese rare earth separation industry (Liao, Wu, Cheng, Wang, Liu, Zhang, & Yan, 2013). The present article will give a brief review of the development of the theory of the hyperlink processes, and the hyperlink separation flowsheets for typical rare earth mines in China designed using the theory.HYPERLINK PROCESSES (LIAO et al., 2013)A flowsheet of multiple-component separation consists of a couple of separation units. The units of a conventional flowsheet separately consume chemicals for saponification and scrubbing and discharge wastewater with resulting salts. In contrast, the separation units in a hyperlink process are hyperlinked and thereby the chemical demands of the whole flowsheet are decreased. For a feed containing t components of A1, A2, …, and At, it has been proved in theory that the separation mode of (AtAt-1…A2)/(At-1At-2…A1) is preferred in a single separation unit. The hyperlinking between separation units can have two forms. The link between two units locating at a same separation level, such as between (A4A3)/(A3A2) and (A3A2)/(A2A1), is known as horizontal hyperlinking. The link between two units located on different levels, such as between (A4A3A2)/(A3A2A1) and (A3A2)/(A2A1), is known as vertical hyperlinking. Both the hyperlinking forms have been proven to save chemical usage and consequently to lower the pollution emissions in industrial practices as well as in theory."

Jan 1, 2016

By A. Majumdar, B. Servière, H. Persson

The CCR refinery, which was built in 1931, treats both internal and third party copper anodes to produce 325,000 mt of copper as cathodes. These anodes contain high levels of impurities, such as Ni, As, Sb and Bi, that reports to the electrolyte during the refining step and need to be removed in order to maintain cathode quality and operating efficiencies. In the purification plant, the electrolyte is de-copperized via electrowinning in three stages. In the last stage, the copper content of the electrolyte is reduced to below 1 gpl in order to maximize the co-deposition of As, Sb and Bi with the Cu. This is accomplished with minimum arsine gas generation by using periodic reversal of the current and by controlling the final copper content of the electrolyte. Nevertheless, the possibility of exposure to arsine is treated as a major risk and controls have been implemented to reduce this risk. This paper describes the controls in place at the purification plant, which are being continuously improved through periodic risk assessments and audits. INTRODUCTION The CCR Refinery, which is a part of Glencore Canada Corporation and located in Montreal-East, Quebec, is a custom copper and precious metal refinery, with a capacity to refine 325,000 tonnes of copper anodes per year. Copper anodes are received from the Horne smelter in Rouyn-Noranda, Quebec, Altonorte smelter in Chile and other 3rd party smelters. CCR anodes are produced using the spent anodes from the tankhouse along with purchased spent anodes and copper scrap. The precious metal plant treats the tankhouse anode slime, purchased anode slime, precious metal ingots and Doré anodes from Glencore’s Brunswick lead smelter in Belledune, New Brunswick. CCR products include copper cathodes, silver and gold bullion, a platinum-palladium concentrate, selenium, tellurium dioxide and nickel sulfate. In 1975 an accident occurred at CCR where two employees were exposed to fatal levels of arsine emitted from the then existing purification cells. This process was therefore shut down immediately. Research and development work was then initiated to determine the optimum electrowinning conditions whereby arsine gas generation would be minimized while maintaining high copper and impurity removal efficiencies. It was found that the application of periodic reversal of current (PRC) during the last stage of electrowinning retarded the onset of arsine formation while at the same time allowing the copper concentration to be reduced to less than 1 gpl (Houlachi & Claessens, 1978). A new purification plant was designed based on the PRC technology and was started up in 1976. In addition to the use of PRC electrowinning, the new plant is located in a fully enclosed section of the tankhouse. A special effort was made to design a ventilation system to evacuate the acid mist in addition to any arsine gas. Arsine monitors were installed to measure the emissions from the stack along with arsine levels in the workroom. The arsine monitors and the ventilation system were interlocked with the rectifiers (Thiriar et al., 1983).

Jan 1, 2019

By Z. D. Hora

Sev_eral dozen si lica occurrences have been reported from various parts of Brit ish Columbia. Some represent hydrothermal veins or parts of pegmatite bodies; other are recrystall ized sandstones. Several vein type deposits were mined for smelter flux and as a source of white chips for stucco dash and simi lar products. Some quartzites were studied as potential sources of high-grade silica for ferrosilicon and silicon metal production. The province's only production of silica for ferrosilicon has come from a pegmatitic quartz plug near Oliver in southern British Columbia. Its reserves are now practically depleted.

Jan 1, 1984

By B. W. Brooks

"After an extensive period of University research and field trials, large scale reclamation of the Waite Amulet tailings discharge areas commenced in the spring of 1978. The Noranda program consists principally of sampling the complete dam to determine the vegetation potential of the various areas, addition of the required amelioration materials, and the use of good agricultural practices. This paper describes the development work that led to the establishment of the Noranda-Guelph Contract and the subsequent findings concerning the revegetation of tailings dams. Current revegetation procedures are presented. INTRODUCTIONThe Amulet Mine Ltd. was staked in 1924 and by 1930 had constructed a small 300 ton per day flotation plant. During the late twenties and early thirties, Noranda Mines Ltd. increased its equity in the company to gain a sixty percent share of this small mine. In 1933 the mine was amalgamated with another small producer, the Waite Ackerman Montgomery Mine Ltd., which was more than eighty per cent controlled by Noranda to form the Waite Amulet Mines Ltd.An interesting historical side point to the story of the Waite Ackerman Montgomery property is that a concentrator was never constructed. In fact, the first ore to go through the Horne mill of Noranda Mines Ltd., built in 1928, was not from the famous upper H and L ore bodies but custom shipments from the Waite."

Jan 1, 1981