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By Richard Akerman

(Translated by FREDERICK PRIME, JR., Professor of Metallurgy in Lafayette College, Easton, Pa.) [THE attention now being paid both in this country and Europe to the greatest economy in the working of the blast furnace, and the eagerness with which all thoughtful men in the iron business look for any new information which will tend to throw light on this sub¬ject, is a quite sufficient excuse for presenting this paper to the Amer¬ican Institute of Mining Engineers.] I. It must be borne in mind that when two bodies unite to form a chemical compound, heat is almost always evolved. In order to

Jan 1, 1873

By Evan C. Morgan G

El presente texto describe el panorama historiográfico de la mina de Condoroma, trabajos y el uso de los métodos de exploración realizados en dicha zona. Situada en el distrito de Condoroma, provincia de Espinar, Cusco, las minas de Condoroma fueron anteriormente trabajadas por los españoles, pero es a partir de 1927 y con la compañía Gibson que los trabajos mineros se reactualizan y se emplea la construcción de un tunel corta-veta de 170 metros de longitud, que al encontrarse con la veta, la extendió a 30 m. Posteriormente en 1952, se interesa la firma Mauricio Hochschild, suscribiendo un contrato de Opción por tres años con el Sr. Carlos Herrera Rozas. Firmada la Opción, se procedió primero a explorar las minas de Kata, por contener vetas vírgenes, y luego, las de Condoroma. Entre los métodos de exploración utilizados estaban los piques, las trincheras, la limpieza superficial con tractor, la perforación con diamantinas y la exploración geofísica. Finalmente, y tras haber desarrollado este programa de exploración con diamantinas, se pudo fijar los valores comerciales del yacimiento minero, aunque a un costo un tanto elevado. Empero la utilización de este moderno método de exploración, permitió revalorizar los yacimientos abandonados y colocarlos dentro de un espacio productivo.

Jul 20, 1956

By Serkan Saydam, Ercument Yalcin

This paper presents the results of Caldagi Nickel-Cobalt Ore Deposit's, located in Turkey, reserve and ultimate pit limit design analysis. Reserve analysis of any deposit requires two steps. First one is to constitute of block model of the deposit and second step is to generate ultimate pit limit. The block model of the Caldagi ore deposit has been created by means of geostatistics. The reserves of nickel and cobalt in this block model are defined as resource, approximately 12 million tons of nickel and 1 million tons of cobalt with average grades of 0.9% Ni and 0.03% Co, respectively. Ultimate pit limit analysis has been performed by considering economic, technical and legal factors. In this paper, the ultimate pit limits are generated by Lerchs & Grossmann (L&G) algorithm. As a consequence of ultimate pit limit design, total amount of tonnage to be excavated is 1.4 billions of tons, 700 million of which contains ore and 747 million of which is the tonnage of waste.

Jan 1, 2002

By I. S. Parrish

Reserve audits have increased in recent years as more companies, especially juniors, enter the ranks of producers. Corporate and individual investors are seeking corroboration of stated reserves. The reserve audit satisfies this need. An audit assures investors that the reserves, as presented, are a reasonable and accurate approximation of the quantity and grade of the economically viable material present. The reserve audit verifies that there are no fundamental errors in logic, style or the data base, and that the reserves, as given, may be used for mine planning or economic forecasting. Reserves that pass an audit may be used with confidence in preparing cash flow projections and in deriving net present value or internal rate of return on any given project. This article describes what a consultant does while performing the reserve audit. In performing an audit there are four general areas of concern that must be checked: definitions, parameters, data and procedures. In each of these, the auditor must convince himself that the reserve study has complied with governmental regulations and guidelines, professional standards and industrial practices. Any deviation from these norms must be identified and its effect upon the appropriateness of the reserves evaluated. By concluding that a reserve study passes his audit, the reviewer is stating that there are no fundamental errors in logic or style and that spot checks have revealed no substantive errors in procedure or mechanics. The responsibility for the reserves remains with the entity that compiled the original study.

Jan 1, 1990

By Jerry D. Pfarr, Gary Loving, David G. McDowall

Introduction The Open Cut is one of the best known landmarks in South Dakota's Black Hills. It is the site of the original discovery of the Homestake ledge, or lead, in 1876. Between that time and 1945, the Open Cut produced about 36 Mt (40 million st) of gold ore, the majority of which was drawn from underground operations. In 1981, a drilling program was undertaken to determine how much ore the old timers left behind. The results of this study indicated an ore body made up of broken and caved ground, and solid blocks in pillars and crowns. Reserves are estimated at about 6.8 Mt (7.5 million st) of gold ore, grading at 4 g/t (0.116 oz per st). Total tonnage of material, including waste, is estimated at more than 60 Mt (66 million st). The mining plan is a combination open pit and underground operations. The bottom 78 m (255 ft) will be mined by the underground panel-caving method. The open pit was designed as a contractor operation up to the expected milling stage or the point of sustained ore production. The pit was designed to avoid disturbance of US Highway 85 near Lead, SD. In 1983, the South Dakota Board of Minerals and Environment approved the mining and reclamation plan. Test mining began in the north of the Open Cut using open pit methods. Upon completion of the test pit, Homestake Mining's board of directors approved an expanded mine plan. They committed an additional $27.1 million to prestrip the ore body that is expected to yield 23 t (750,000 oz) of gold. Project life is estimated at 15 years. Exploration program In early 1980, 10 diamond drill holes were drilled from the surface in the vicinity of the east side of the Open Cut. The reserves delineated by that drilling were too small to justify their development. A continuation of this study attempted to quantify the tonnage remaining in the bottom of the Open Cut in the crushed remnants of old stope-and-crown pillars. This was originally thought to be minable by improved drawhole methods using highly mechanized procedures. By early 1981, however, thinking turned toward surface mining methods. The effort to quantify minable ore tonnage ultimately involved drilling 385 reverse-circulation rotary drill holes. These were drilled from August 1981 to March 1983 in several groups of holes. Each group, or drilling program, had a slightly different immediate goal or purpose. The holes were drilled to various depths using truck-mounted Drill Tech 40 drills with doublewalled 76 mm (3 in.) pipe with 134 mm (5.25 in.) three-cone rotary bits. Initially, wet drilling was employed using a cyclone collection system. Since cutting recovery was not as high as it should have been, all subsequent drilling was dry. The cuttings were collected and deposited by way of a cyclone into the sample bag. The pickup for the cuttings using the three-cone bits was about 50 mm (2 in.) above the bottom of the hole. Overall cutting recovery for the drilling program was estimated at 75%. Samples were taken on each 1.5 m (5 ft) of hole drilled. Each sample was split into three 48-g (1-2/3 assay ton) charges. The accepted value was the straight average of the three charges. Because of the known "nugget effect," assays were nearly impossible to duplicate. Therefore, to validate the regular assays, a series of screen fire assays were run. Based on this method of assays and checks, it was concluded that 10% more ounces would be produced than indicated by mine grade. Test pit The northernmost portion of the mine as planned is known as the Terraville test pit. This portion was mined ahead of the rest and separately. It provided answers to questions on slope stability, reserves correlation, mill recoveries, mining costs, and surface mining conditions in various weather and ground conditions since many boulders and much timber were expected. The mining plan for this portion of the pit was successful. More ore was mined than was expected. Mixing of Open Cut ore with underground ore in the mill feed was successful. Impact on the surrounding communities

Jan 10, 1987

By N. B. Prenn

Many recent projects have been developed and mined based upon imaginary reserves. Imaginary or "geo-fantasy" reserves have cost many companies millions of dollars. The significant and varied technological advances in the mining arena have done little to curb reserve calculation problems. These advances may have served to increase the prevalence of reserve problems by putting more tools in the hands of personnel not properly trained or experienced in reserve estimation. This paper will discuss potential problems related to calculating reserves, which include: SAMPLING ERRORS -obtaining a representative sample. -Decay analysis of wet RC drilling -Bias introduced by sample preparation. -Assay bias; Coarse gold. -Specific gravity samples. GEOLOGICAL ERRORS -structural boundary definition. -Separation of high grade and low grade zones. -Incorrect continuity assumptions MODELING ERRORS -Too much influence of high grade samples. -Improper method of calculation. -Assumed range of influence. -Errors in the data. ENGINEERING ERRORS -Inaccurate assumptions. -Inadequate metallurgical testing. -Designed bottlenecks.

Jan 1, 1992

Efficient project planning during the detailed feasibility to final engineering stages of a project requires not only the accurate prediction of the grade, tonnes and recovery, but their degree of variability as well. An understanding of the major parameters involved in the grade and tonnage estimates is essential, and the communication to those receiving the results is most important. The personnel involved in the project require more than just a global reserves classification. Quality parameters other than grade should be evaluated as carefully as the estimate itself. This paper does not present any novel ideas to overcome or enhance any of this. Rather, it takes a step back and tries to look at the global picture of requirements for proper project planning.

Jan 1, 1987

By Tullemans FJ

This paper describes the general approach to ore reserve estimation and mine planning used at the Kidston Gold Mine. The geological setting and exploration is briefly summarized for background information.A geostatistical study of the deposit was carried out to determine the geological ore reserve. This was confirmed using a manual polygonal technique. Optimum pits outlined by a Lerchs-Grossman open pit design algorithm were manually smoothed allowing mineable reserves to be calculated. Mine production schedules based on kriged block grades and tonnages are continuously updated using production blasthole assays. An arithmetic mean technique of block grade estimation has proved successful to date. After milling approximately 4.9Mt of ore, the mill grade of 2.13g Au/t is only 0.5% above the mine estimate of 2.12g Au/t. The difference in contained gold between "As staked" blasthole reserves and kriged mineable reserves is 3.8%. The application of blasthole kriging as a basis for ore/waste classification in erratically mineralized areas is being evaluated. Planned future developments are briefly mentioned.

Jan 1, 1986

Mining has traditionally been seen as a relatively risky business. Exploration is expensive and the failure rate is high, while start-up costs commonly run to many hundreds of million dollars. To justify the risk and expense, the returns from successful projects must also be high. Accurate estimation of mineral resources and reserves is fundamental to the processes of optimising returns and managing risk in mining developments. Systematic development from initial exploration through a series of development stages enables expenditure and risk to be balanced. As a consequence, large scale modern mine are more akin to manufacturing businesses. This paper examines the life history of a mineral reserve estimate from the perspective of a large mining company against a background of modern estimation and reporting requirements. It will also touch on what constitutes, in the author's opinion, `best' practice in reserve estimation, and how this concept can be spread more widely. [Abstract to be re-written and reduced to 100 words]

Jan 1, 2003

By A. G. Pasamehmetoglu, N. Celebi, K. Erarslan

A deposit evaluation system has been developed for a proposed new mine in the basin around Collolar in Turkey. It includes compositing, gridding and reserve estimation facilities and takes account of the economic value of the pit and the pit bottom elevation

Sep 1, 1991

By Kenneth M. Haley

THE development of Reserve Mining Company's pelletizing practices began in 1949 in a pilot plant located at Ashland, Kentucky. Three years later the participating companies -Armco Steel Corporation, Cleveland Cliffs Iron Mining Company and Republic Steel Corporation concluded the work and the small plant was shut down. Oglebay Norton and Company was the operating manager and Armco Steel Corporation furnished labor and services. Arthur G. McKee and Company were the designers and constructors. The equipment flow sheet that was employed in that pilot operation is shown in Figure 1. This was Reserve's first step from the laboratory work per-formed by the Mines Experiment Station of the University of Minnesota in developing a commercial operation. The plant used New York state concentrate, purchased from Jones and Laughlin Steel Corporation's Benson Mine. This concentrate, minus 14 mesh, 64.3 per cent Fe, 5.7 per cent Si02, was processed at Ashland to 80 per cent minus 325 mesh in conventional ball mill, classifier, thickener, filtering

Jan 1, 1961

Jan 1, 1978

SUCCESSFUL development of a new process for heat hardening of pellets made from taconite concentrates was announced by Arthur G. McKee & CO., steel plant engineering and construction firm of Cleveland, and Allis-Chalmers Mfg. Co. An order for the design, engineering, and materials for a plant incorporating the process, has been received by the McKee Co. from the Reserve Mining Co. for its new E. W. Davis Works at Silver Bay, Minn. It is estimated that this plant will cost around $19 million and when in full operation, will turn out 12,000 tons of pellets per day.

Jan 10, 1954

By F. W. Wellmer

"This paper discusses the changing nature of reserve/consumption ratios, using data from Canadian operations and focussing particularly on copper.IntroductionStudies in world metal consumption and world metal reserves are done regularly by the U.S. Bureau of Mines, the German Federal Institute of Geosciences and Raw Materials, and other institutions. Formerly, on the basis of these data, the following figures were calculated:• a static lifetime of reserves-reserves at year end divided by the consumption of the previous year;• a semidynamic lifetime of reserves-reserves at year assumed constant growth rate.These figures were severely criticized because they were purely theoretical and did not consider the availability of the raw materials.Recent practice is to calculate reserve/consumption ratios (R/C ratios) for periods(1) or for different years(2,3) and to interpret the trend. For base metals, these R/C ratios are increasing (Table 1). This had led to the conclusion that today the relative availability of base metal reserves has increased as compared to 10 or 15 years ago(4,5) As there are normally numerous deposits for each commodity, the anticipated production rates of deposits are irrelevant to this conclusion as long as the statistical distribution of possible production rates does not change significantly.The above conclusion is only justified if the quality and the nature of the data base remain the same. This is certainly the case for the consumption data. It is also assumed for the quality of the reserve figures, which usually take into account only proven and probable reserves. For the nature of the reserve figures, however, this does not seem to be true.Undoubtedly, the reserves increased in absolute terms between 1966 and 1978. To put the absolute reserve figures into perspective, it is common, as said above, to compare them with the mine production, which increased in the free world between 1966 and 1978; e.g. for copper by 40%, for Pb by 17% and for zinc by 36%. However, the reserves are also influenced by other factors, such as average size of the mines, changes in the grade of the mined ore, price-to-cost relationships and the like.The purpose of this paper is to examine the nature of the reserve figures in more detail. Because the completeness of mining data published in Canada is rather exceptional, Canadian .data serve as an example and it is assumed that the conclusions can be extrapolated to other mining countries or at least to those with free market systems."

Jan 1, 1981

The economic future of the Palmer Goldfield lies with both the gold mining and the tourist industries. An equitable solution to the competition between the two involves putting a dollar value on the historical evidence there for our Australian heritage.On 23 October 1986 the Queensland Government gazetted the Palmer River Reserves R16 of 16 200 hectares, in recognition of the competing land uses emerging in the region. The intention is that historically significant gold mining sites and relics will be preserved in situ with provision for continued gold exploration and mining.This paper explores and explains the administrative process of achieving a set of Management Guidelines for Rl6 within the Queensland political milieu. The result of that process is the achievement of some of the highest preservation standards in Australia, prohibiting surface disturbance of defined Category 1 sites, and no mining proposal has yet been refused approval.The Palmer Goldfield R16 experience is a major step in achieving a co-ordinated approach to both current mining and preservation of Queensland's mining heritage.

Jan 1, 1990

By Carl Zapffe

THE manganese ore reserves of Lake Superior, because of their location and nature, have recently achieved a marked degree of importance as compared with the world's manganese reserves. To appreciate fully the significance and the adequacy of this reserve, one should understand how such ores are used, where obtainable, the quantity used, possible avenues for increasing use or application, and the chemical and physical characteristics of the available ores. Only with that data at hand, is it possible to arrive at a convincing answer to the question whether the reserves of manganiferous iron ores are adequate to satisfy the annual demand of the presently known iron ores for the full life of the latter. That they should last is vital; and to ascertain whether they will last was the purpose of the present investigation, which marks the first attempt to study these Lakes Superior reserves. The Lake Superior region possesses and supplies the full assortment of iron ores needed for the conversion of ore into pig iron and steel ingots and castings. These ores are named bessemer; low-phosphorus and high-phosphorus non-bessemer, manganiferous and siliceous; and to include the term aluminiferous, would be in keeping with the most recent no men clature adopted by some dealers. About 35 or 40 years ago, perhaps less, most of the Lake Superior ore which is being used today was the material then considered either useless or too poor for immediate use; perhaps it was considered no more than a future reserve. An examination of the analyses of ores and the guarantees in the sales of those older times, convinces one that the opinions of those days must have been governed by only small differences in analyses. Some grades of ores used today in substantial amounts were used most sparingly only one or two decades ago. The relative quantities of the different ores used is ever changing; and, bit by bit, the metallurgy and the opinions are every changing and the prejudices against certain ores and practices decrease. This is unquestionably more pronounced for the manganiferous ores than for any other kind. If, when using the present data for manganiferous ores, we will only be

Jan 5, 1927

By V. R. Garfias, R. V. Whetsel

As pointed out in previous studies, estimates of petroleum reserves if they are to be of value must not only presuppose a clear understanding of what is actually meant by reserves but must be subject to constant revision to conform with changes in their component factors. When such estimates are analyzed it must be clear that it is virtually impossible to obtain comparable figures reflecting the same degree of accuracy, to represent the reserves not only in various countries, but at times even of different fields in the same country. Estimates of reserves in the United States, subject to frequent independent checks, are obviously more reliable than those furnished, for instance, by the Soviet Government, as the latter must be accepted at their face value and are open to the suspicion of being made to conform with predetermined programs of propaganda. Any tabulation of the reserves of all producing countries, therefore, gives a total that is misleading, as the component items arc not arrived at on the same basis and therefore are not homogeneous in a true sense. Only a fraction of the petroleum stored underground, usually associated with natural gas, is or can be brought to the surface, and although practically all the natural gas underground can be rccovered, in actual practice in some fields a large part of the gas that reaches the mouth of the well is wasted. It is thus estimated that in the United States only some 25 to 35 per cent of the petroleum underground in proven fields is actually economically recovered. Estimates of reserves, therefore, should make clear the distinction between the known amount of oil underground in producing fields and the portion that actually can be brought to the surface. It cannot be overemphasized that as a result of the operation of the "Law of Capture," which controls subsoil ownership in the United States on comparatively small landholdings that seldom if ever cover the entire producing area, the oil fields are not as economically exploited as some forrign fields, and that as a result (were it not for the easy accessibility of the domestic market, the largest in the world) some American production would now be unprofitable in open competition with foreign oils.

Jan 1, 1939

By R. V. Whetsel, V. R. Garfias

As pointed out in previous studies, estimates of petroleum reserves if they are to be of value must not only presuppose a clear understanding of what is actually meant by reserves but must be subject to constant revision to conform with changes in their component factors. When such estimates are analyzed it must be clear that it is virtually impossible to obtain comparable figures reflecting the same degree of accuracy, to represent the reserves not only in various countries, but at times even of different fields in the same country. Estimates of reserves in the United States, subject to frequent independent checks, are obviously more reliable than those furnished, for instance, by the Soviet Government, as the latter must be accepted at their face value and are open to the suspicion of being made to conform with predetermined programs of propaganda. Any tabulation of the reserves of all producing countries, therefore, gives a total that is misleading, as the component items arc not arrived at on the same basis and therefore are not homogeneous in a true sense. Only a fraction of the petroleum stored underground, usually associated with natural gas, is or can be brought to the surface, and although practically all the natural gas underground can be rccovered, in actual practice in some fields a large part of the gas that reaches the mouth of the well is wasted. It is thus estimated that in the United States only some 25 to 35 per cent of the petroleum underground in proven fields is actually economically recovered. Estimates of reserves, therefore, should make clear the distinction between the known amount of oil underground in producing fields and the portion that actually can be brought to the surface. It cannot be overemphasized that as a result of the operation of the "Law of Capture," which controls subsoil ownership in the United States on comparatively small landholdings that seldom if ever cover the entire producing area, the oil fields are not as economically exploited as some forrign fields, and that as a result (were it not for the easy accessibility of the domestic market, the largest in the world) some American production would now be unprofitable in open competition with foreign oils.

Jan 1, 1939

The mineral sands deposit of Australia pose a number of unique, and quite unusual problems for the explorationist. Most concentrations of heavy minerals have been found in the unconsolidated sediments of the east and west coasts. Mineral sands mines open larger areas per tonne of concentrate than most other mines. This is because of the shallow depth of the sands containing the heavy mineral concentrations. Obtaining tenure can, by mining industry norms, be a massive operation due to the large areas to be examined and, particularly on the east coast, the large number of land holders encountered. A commercial development can still emanate from anything ranging from a small high grade body to a massive low grade deposit, the prices currently being obtained for rutile, zircon, ilmenite and monazite, although still modest when the remarkable properties and applications of these minerals are considered, is nevertheless attractive when compared to the prices being obtained for the base metals with the exception of gold. The current interest in the location and definition of new reserves of heavy minerals reflects this relative price attractiveness. The discovery of heavy mineral concentrates does not necessarily ensure the early establishment of a mine. Because of the cyclical nature of market prices, the average returns likely over the life of the mine permit the employment of only relatively simple, low cost, mining, concentration, and separation processes. If difficult mining conditions are encountered or the removal of small contaminants by complex metallurgical processes are required, then higher market prices must be obtained. Until the market is prepared to pay more for the commodities so produced, the resource will not be economic and lower cost reserves will be mined in preference. The Australian mineral sands industry has seen many closed mines because of past failures to properly assess the data base collected during the exploration and development phases of the failed projects.

Jan 1, 1987

By Twemlow GL

The accounting profession in Australia and overseas has taken up the responsibility of setting standards specifically relating to the minerals and energy industries. Australia led the way with AAS7 Accounting for the Extractive Industries. This statement was issued in 1976 and amended 1977..It largely deals with accounting for preproduction expenditure and uses the term "economically recoverable reserves". It does not require disclosure of reserve quantities or values in balance sheets or as supplementary information in financial statements. The United States accounting profession in 1982 finally resolved an accounting standard in the same area as AAS7-SFAS69 Disclosures About Oil and Gas Producing Activities. It applies only to oil and gas producers, but has extensive disclosure requirements, including proved oil and gas reserve quantities. Current developments indicate that Great Britain is about to follow the US example. At this time in Australia, AAS7 or some other statement relating to the extractive industries has not been issued as an approved accounting standard by the ASRB. Standards issued by the ASRB are binding in law.

Jan 1, 1987