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This paper addresses the valuation and development timing of an undeveloped mineral project. Traditional analysis has us developing the project immediately if its net present value (NPV) is positive. Option pricing theory finds that it is better to wait until the NPV of the property is significantly greater than zero before developing. Alternatively, when evaluating the development timing decision, we must calculate NPV using a higher "timing-adjusted" discount rate, and develop the property only if its NPV using this timing-adjusted discount rate is greater than zero. This paper uses option pricing ideas to convert this development timing advice into a more concrete and user-friendly decision rule: develop the project when its "development-timing NPV" is positive, this development-timing NPV being calculated using the normal discount rate.

Jan 1, 1997

Developing and operating mines in developing countries is never dull, but continuously challenging in terms of geology and terrain, geography and location, culture and land tenure, environmental and social issues, fiscal regimes and in some cases political risk. In addition, the rapidly changing nature of the communities with little understanding of the nature of mining at the community level requires us to continually manage issues affecting project development and mine operations with greater sensitivity. In frontier regions, people skills can become more essential than technical skills, particularly in dealing with indigenous people. Hence, managing a mining project requires a huge relationship effort.Effective communication with communities of different cultural background and proactive management of issues influencing community aspirations and desires requires not only new skills but also creativity with new concepts on how to deal with social issues under a different cultural context. The involvement of government agencies and NGOs is an important ingredient to creating understanding and collaborative approaches to common social issues. Maintaining stakeholder relationships pays in the long-run and is a useful exercise in getting information feedback from the wider community.

Jan 1, 1997

By L. R. Chirinos

The Tintaya mine of BHP Copper, located in Southern Peru, includes a copper oxide deposit hosted in a mineralized skarn zone. The ore contains large amounts of clays and high acid consuming species resulting in low heap leaching performance. A treatment scheme was proposed that included a wet screening separation. The coarse fraction would be treated by heap and the fines by agitation leaching. The dissolved copper would then be recovered through solvent extraction and electrowinning (SXEW). Testwork determined the optimum heap leaching conditions to treat the oxide in on/off pads of 3 meter height with an initial acid cure followed by variable acid strength during irrigation. The method resulted in a reduced acid consumption and good copper recoveries.

Jan 1, 1997

Exploration of a coal deposit provides the data on which a range of mine plans can be developed during project feasibility. The stages of exploration use methods and procedures which initially outline the deposit with more detailed data gathering and analysis of the specific site complexities. The in situ coal resource and reserves are calculated. The mine plan is a function of the mining method chosen and can have significant impact on the recoverable reserves. Other factors which can impact on the recovery of the reserves and the ability to maintain planned production levels are those which were either undetected during exploration or were misinterpreted. Exploration programs should be detailed enough to minimise to an acceptable standard the recognised and potential risks. Past programs which explored to achieve a minimum exploration density required to satisfy measured reserve status have generally proven to be inadequate, placing reserves and production at risk.

Jan 1, 1997

By Sigmund D. Schwarz

INTRODUCTION In late 1970, an experimental geophysical program was undertaken at the Lake Huron Tunnel for the purpose of developing a geophysical technique that could be applied to determining the thickness of rock above the crown of the tunnel and identifying anomalous geologic conditions ahead of the face as the tunnel was advanced. The Lake Huron Tunnel is an 18.5 foot diameter machine bored tunnel having a total length of approximately 6 miles. The easternmost 4.5 mile section of the tunnel extends offshore beneath Lake Huron. At the time this study was started, approximately 1.5 miles of bore remained to be completed at the east end of the project. The tunnel is part of a raw water intake for the City of Detroit water supply. The Lake Huron Tunnel is bored in Antrim shale, a dense marine shale of Mississippian or Devonian age. The west end of the project encountered banded brown shale containing numerous calcareous concretions ranging in size from a few inches to more than 16 feet in diameter. As the tunnel was advanced in an easterly direction, a transition was encountered into very uniform gray shale. One set of prominent vertical joints was encountered with a strike running approximately 15 to 20 degrees askew of the tunnel axis. Bedding is essentially flat. Variable quantities of salt water and natural gas occur in the rock. The results of exploratory drilling carried out for preliminary design studies indicated that as little as 30 to 35 feet of rock cover could be expected under the lake at the east end of the project.

Jan 1, 1997

By N. Kanari

One of the criteria to define the market value of chromite concentrate is its chromium to iron ratio. Changing this ratio for a definite chromite mineral is impossible by physical processing. This study investigated the possibility of increasing this ratio through the carbochlorination and the oxychlorination of chromite concentrates. Experiments are carried out up to 1000 °C. The characteristics of samples and reaction products are determined by SEM, XRD and chemical analysis. The carbochlorination of a chromite concentrate at about 600 °C leads to the . selective partial elimination of iron allowing a higher Cr/Fe ratio of the treated concentrate. Selective extraction of iron could also be achieved at about 950 °C by oxychlorination. In this case, a part of chromium contained in the concentrate is recovered as chromium oxychloride. The obtained residue had high content of Cr, Mg and A1 oxides. Such material has probably better chemical and thermal properties that may. be useful for foundary and refractory applications. Two flow-sheets for the beneficiation of the chromite concentrates using carho- and oxychlorination are suggested.

Jan 1, 1997

By Timothy P. Smirnoff, Anthony Stirbys, Amanda Elioff

The construction of the continuing expansion of the Los Angeles Metro System has required the construction of eight new station structures. One contractor proposed, as a construction alternative for the support of excavation of the Hollywood/Vine Station, the use of soil-mix walls instead of the conventional soldier piles and wood lagging. Soldier piles and shotcrete or wood lagging support systems had been generally used on the other sub-way station excavations constructed to date throughout the system. Immediately east of that station and in almost exactly the same geology, the Hollywood/Western Station was being excavated at the same time using a conventional support system. This paper com-pares the performance of these two support systems in the alluvial soils of the Los Angeles Basin.

Jan 1, 1997

By Daniel Hodouin, Claude Bazin

"This paper examines the economic advantages of adapting the production grade and recovery targets of a flotation circuit as a function of metal prices. The study is periormed using a steady state simulator for a Cu-Zn differential flotation circuit operating under the following strategies of 1) Maintaining constant operating targets, 2) Maximizing individual circuit Net Smelter Return and 3) Maximizing the global Cu-Zn circuit efficiency. Results are compared to assess whether or not one of the strategies produces benefits significantly higher than the others. A discussion of the tools required to achieve such a kind of control completes the paper.Paper not Available at Time of Publication"

Jan 1, 1997

It's a great pleasure to be here today, for a whole series of reasons. First of all, when I first went to Perth back in 1972, I shortly afterwards began auditing and one of the people to pick on me when I audited the West Australian Newspaper at that time was Patrick O'Connor's father. One way to win a person across when you're auditing and getting picked on is by showing an interest in their children, so I did that and employed Patrick in our firm. In those days, conflicts of interest didn't occur. When I started Normandy, Patrick was one of the first people I went to get to work with me. He very unwisely chose to leave at one stage and you can see he's done extremely well by not staying with us. So it's lovely to have you here today, Patrick. The difference between Patrick and me, now, is that he's kept his hair, and if you're tall enough you can see I haven't.

Jan 1, 1997

The Mt Sinivit gold project is located approximately 50km SSW of Rabaul in the Baining Mountains of the Gazelle Peninsula, East New Britain Province. The deposits were discovered in mid- 1983 and form part of a larger 26km long zone of variably aurif- erous quartz veining. There are no surface indications or previ- ous records of any prospecting activity or production from the region. The Mt Sinivit deposits consist of a series of oxide and sulphide reserves and resources contained in the Wild Dog (South- ern, Central and Northern oxide zones; Northern sulphide zone) and Kavursuki veins. The proposed exploitation of the oxide reserves by a series of small-medium sized open pits has been fostered by the PNG Department of Mining & Petroleum (DMP) as part of a government policy to encourage the development of a small-medium sized mining industry in the country. The aim of this paper is to document the steps and procedures involved in obtaining the grant of a Mining Lease emphasising the time and the expenditures required during each step of the approvals process for the Mt Sinivit project.

Jan 1, 1997

By J. Sofra

The quantity of copper produced by secondary material processing is increasing as metal producers look to cleaner and cheaper sources of copper. The need to smelt secondary copper more economically, to process a wide range of materials with large fluctuations in size and composition and to cope with the increasingly stringent environmental constraints have put considerable pressure on existing conventional secondary copper smelters. The Top Submerged Lance process, developed and commercialized by Ausmelt Ltd offers a low cost technology, which is particularly adapt at processing copper-bearing scrap and residues. The application of Ausmelt Technology to replace conventional secondary copper processing operations introduces potential for significant advantages in environmental performance, and improved process efficiencies through the use of cheaper hels and reductants, the high rate of metal recovery and the flexibility inherent in the technology to process various feed material types. The economical, process and environmental benefits of its application are highlighted for both the smelting and converting stages of copper production.

Jan 1, 1997

By J. S. Moretzsohn, D. F. Graham

"Airborne Synthetic Aperture Radar (SAR)was acquired over the Carajás Mineral Province, within the rainforests of the Amazon, which hosts the world’s largest Fe-ore deposit(Santos, 1986). Significant chemical weathering exists in this humid environment. PrevalentAu mineralization is thought to be generally associated with deformation zones in Archean schists.Radar data have proven to be very useful as an aid to geological mapping in the tropical rainforests of the Amazon Basin in Brazil. In these densely vegetated areas, a sense of regional structural trends is obtained as a con-sequence of the sensor/terrain geometry. The top forest canopy is the main terrain reflector of X-band radar energy, and consequently is the main terrain surface feature expressed in processed radar imagery. Radar is important for extending t,he continuity of mapped structural lineaments. Differential weathering is related to variations in radar image texture which is used to infer gross lithologic variations and relative age relationships of major rock units. Specifically, quartzites and banded iron formation are highlighted in the radar imagery due to their unique tonal and textural appearance, in contrast to schists, gneisses and metavolcanic rocks. As tropical areas are typically enveloped in cloud or mist, radar data are invaluable in providing information for logistical planning of field mapping activities."

Jan 1, 1997

By N. D. Cristescu

An analysis of the interaction between a creeping rock and a yieldable lining is presented. The following cases are considered: an elastic lining, a lining made of circular shaft rings that may slide at their joints, a lining made of circular reinforced concrete panels with wooden compressible strips inserted between the longitudinal joints and a yieldable support that has a compressible broken-rock stratum between the support and plane rock. By formulating a mathematical model for the rock-lining interaction, one can optimize the sequence of excavation-lining application. To keep costs to a minimum, one can also choose the most appropriate lining for the corresponding rheological properties of the rock.

Jan 1, 1997

By Jiricek F

Legislative change has reformed the licensing process in Victoria. The Mineral Resources Development Act 1990 and the two stage system of licensing with the authority to commence work is discussed. A key part is the requirements of planning consent, being either an Environmental Effects Statement or the issue of a Planning Permit prior to the issue of an authority to commence work for mineral extraction. Examples of recent experience is discussed.

Jan 1, 1997

By Claude Boisjoly, Pierre de Courval, Don Nguyen

The Sainte-Marguerite-3 (SM3) hydro project, presently under construction, requires the excavation of an underground powerhouse and large water conveyance tunnels. This paper describes the planning of the project, main features of underground structures, excavation techniques and ground support.

Jan 1, 1997

By Lon D. Santis

The Code of Federal Regulations Title 30, Parts 56, 57, 75, and 77 require that detonators and explosives be separated by four inches of hardwood or equivalents when transported together in mines. This standard was developed to protect the explosives from initiation by the more sensitive detonators. The research reported here is an attempt to quantify the fire protection offered by four inches of red oak and other materials. Boxes with a volume of 6.75 cubic feet were made from four-inch thick rough green oak (RGO), two-inch thick RGO plied, two-inch thick #1 common (dried) red oak plied, and a metal/plywood composite. These and boxes meeting the Institute of Makers of Explosives' (IME) Safety Library Publication No. 22 were tested in bonfires. The boxes were instrumented with thermocouples, filled with detonators, and placed over a kerosene fire imparting about 16 kilowatts per square meter heat flux for up to 3 hours.

Jan 1, 1997

By A. D. Akerman, D. D. Young, G. R. Baiden

The development and maintenance of underground roadways are increasingly important aspects of the modern mining process. With the trend toward automation and track-less mining, roadbeds capable of with standing increased wheel loading have proven necessary to maintain high vehicle speed and reduced maintenance costs. Concrete has been used successfully on some roadways in order to obtain the required characteristics. However, this solution usually involves unacceptable expense. The objective of the Road Router project was to create a drift floor profiling machine capable of cutting a smooth surface out of the existing rock floor of development drifts and ramps. This surface would provide a durable, high strength, low rolling resistance roadbed that would allow for reduced operating cycle times and lower maintenance costs of scoops and haulage trucks. The Road Router has the potential to offer an alternative to concrete with substantial cost savings.

Jan 1, 1997

By J. M. Gambogi

Demand for titanium minerals and pigments was nearly unchanged in 1996 compared with 1995. However, through mine expansions and process optimization by the TiO, pigment industry, the available supply of titanium minerals and pigments increased moderately. At the end of 1996, exploration, development and expansion programs were ongoing in the mining sector. But expansion projects in the pigment sector were delayed pending increased demand.

Jan 1, 1997

By K. Twite, K. Mujinga, J-M. Dereydt, P. Louis

"GECAMINES is a large mining concern and the world's leading cobalt producer having some of the richest cobalt deposits in the world. Cobalt is associated in the ore with copper as sulphides and oxides and in some locations with nickel too. Specific hydrometallurgical processes have been developed by GECAMINES which had done an important contribution to the development of the cobalt hydrometallurgy.In the Shituru plant, cobalt is obtained from an unique in-pulp electrolysis process, while in Lullu, cobalt is electrolyzed in a clear acidic solution giving a purer deposit. In the beginning of 1996 Shituru started the treatment of mixed Cu-Co-Ni Shinkolobwe hydrates obtained as by-product of an uranium solvent extraction plant. A typical analysis of this feedstock is: 2% Cu, 8% Co and 4% Ni.The nickel sulfide depolarized cementation process developed previously by GECAMINES was inefficient to treat such a high level of nickel contamination and it was decided to produce alloyed Cobalt-Nickel cathodes in the Shituru tankhouse.As anticipated from laboratory tests as previous studies and publications, a lower Ni/Co in the deposit was obtained compared to the Ni/Co ratio solution, despite the nickel reversible electrochemical potential is somewhat higher than the one of cobalt (-0.25 V vs -0.28 V).In this paper, the process flow-sheet and production data are given. Cobalt alloy with 5 - 20 % Ni was obtained at a production level of 300 t per month. The process developed is a new contribution to cobalt hydrometallurgy."

Jan 1, 1997

By Liu Y, Campbell K. R

The paper shows how breakage parameters may he extracted from laboratory batch grinding results and how they may used with reference full-scale hall mill circuit data to estimate the likely size distributions of values and gangue in a full-sca

Jan 1, 1997