Search Documents

The ""multiple of exploration expenditure"" method of mineral valuation is applicable to exploration properties from the earliest stage of exploration to a moderately advanced stage but for which no resources have been delineated. While not recommended as a primary valuation method by some workers, others believe it to be the most satisfactory method of valuing exploration properties until it is possible to employ a DCF technique. In many situations facing the professional valuer, the method may represent the only semi-quantitative option available and is frequently used. Significantly it often forms the starting point in discussions to farm-in on an exploration tenement. The paper briefly reviews the definition of value as applied to mineral valuation and in particular examines the relationship between fair value and market clearing price in ""fair"", bull and bear markets. The multiple of exploration expenditure method uses previous exploration expenditure and/or future committed exploration expenditure to derive a base value for the tenements. This base value is multiplied by a prospectivity enhancement multiplier (PEM) with adjustments for market premium or discount and consideration of the quality of the exploration team to derive a fair value for the tenements. The paper will demonstrate that there is no necessary nexus between fair value derived from the method and present book Values.

Jan 1, 1994

By Marcelo B. Mourão

The reduction of iron ores by solid carbon, when both are agglomerated together in the form of pellets, has important kinetic advantages. Although several studies have been performed on the subject, some points on the controlling mechanisms need clarification. There is a big scatter in the values of the apparent activation energy reported in the literature, and this may be due to factors like heat transfer, flow of gases in the reduction system, pellet size and composition. This work is concerned with the effect of several parameters on the reaction rate. The parameters studied were temperature (in the range 1173 K to 1423 K), carbon type (coke or charcoal), pellet size, gas flow rate, catalyst action of the produced metallic iron and added sodium carbonate. It has been shown that the values of the apparent activation energy can change according to the reduction conditions employed, and hence any modeling effort will have to take account of these parameters. EPD Congress 1994

Jan 1, 1994

By R. G. Reddy

Iron solubility's in spent pickling (HFHNO3 -H2O) solutions were determined as a function of HF and HNO3 acid concentrations. A chemical analysis of the industrial pickling solutions and sludges was performed. The stable phases observed in the sludges are FeF3.3H2O and (FeCr)F3.3H20. Pure Fe metal, AISI 316 stainless steel and AISI 416 stainless steel were used in this study. The results show, that the solubility of Fe increased as the concentrations of HF increased in the pickling solution at a fixed concentration of HNO3. A reasonable agreement between the experimental solubility data and the theoretical calculated data was obtained. X-ray diffraction analysis showed that the solid solubility product formed in the ternary solution containing pure Fe is mainly, at a high pH value, FeO(OH) compounds and, at a low pH value, Fe F3.3H2O compounds.

Jan 1, 1994

By Bruce Hern

The last 10 years have seen a dramatic increase in the requirements for product coal quality control. This has led to electric utility sulfur scrubbing, metallurgical blast furnace optimization and coal producer blend and yield optimization. To achieve this improved level of control, coal producers are designing facilities that emphasize new technology. New facilities will be designed and existing facilities will be retrofitted with state-of-the-art technology to meet quality control standards that are dictated by the market. The first step in designing for process control requires the identification of those parameters to be controlled and the upsets that can cause variances in the final shipped product quality. The most common parameters that require control are the surface moisture (%), ash (%), pyritic sulfur (%) and gross calorific value (Btu). Total moisture is that moisture that exists on the surface of the particle and is inherent in the particle itself. For the purposes of control, the total moisture is monitored, while surface moisture is controlled. Ash is the inorganic residue remaining after all other constituents are burned away at 75O°C( 1382°F)(ASTM, 1992). Sulfur is the amount of total sulfur that exists either as pyrite (FeS2), inorganic sulfate (FeS04), or organic sulfates (C4H4S) (Leonard, 1979). Currently, pyrite is controlled and total sulfur is monitored. The gross calorific value is the amount of heat produced when a unit quantity of coal is ignited under specified conditions. In this case, a l-g (0.03-oz.) sample of coal is ignited in an isoperibol waterbath and the temperature rise of the water bath is observed. The moisture and ash-free (MAF) Btu is relatively constant for a given seam, resulting in the whole calorific value being a function of the moisture and ash levels (Leonard, 1979).

Jan 1, 1994

The large, low grade, Kidston Gold Mine in North Queensland has achieved outstanding economies of scale and profitability. The total mineable ore reserve including mined to-date (as at December 1993) was 70.75 million tonnes at 1.54 grams gold per tonne. After nine years of mining, grade control mine production routinely reconciles against mill production and ore reserves to within five per cent of contained gold. The grade control system developed at Kidston is examined in detail, with emphasis on the geological thinking behind the strategies, as well as the development and application of a computerised, graphical production control and reporting system. Reconciliation procedures and results are explained, illustrating the success of geostatistical methods, as a risk management tool, in both ore reserves and production grade control.

Jan 1, 1994

By K. M. Tait, M. M. McDonald

"An overview of the status of the development and application of Integrated Gasification Combined Cycle (IOCC) power generation is presented. Current projects in North America, Europe and Japan are described, together with the status of plans to apply the technology in Canada. A brief review of the technology is presented, including promising coproduction cycles and hybrid gasification fluid bed processes. The ability of the process to be modified for CO2 to be extracted for enhanced oil recovery or disposal is addressed. The environmental impact of IGCC technology is compared to those of other power generation technologies IntroductionDefinition and HistoryIntegrated Gasification Combined Cycle (IGCC) technology is a concept which has been around for about 50 years but has been generating increasing interest in the last 10 to 15 years. This paper focusses on coal as the feedstock for gasification. Other feedstocks used in gasification systems have included oil, biomass, tires and petroleum coke. IGCC technology integrates coal gasification with generation of electricity by means of a combined cycle system which fires the produced gas in the gas turbine. Figure 1 shows the basic components of an IGCC system which are the gasifier, the gas cleanup system and sulphur recovery plant, the gas turbine/generator set, the heat recovery steam generator (HRSG) and the steam turbine/generator set. The benefits of an IGCC system over a conventional Rankine Cycle pulverized coal (RCPC) fired system for the generation of electricity from coal are that the IGCC system has potential to have higher efficiency and lower emissions of NO., SO and CO2 per unit of power produced than the corresponding RCPC system."

Jan 1, 1994

By R. A. Horn, S. M. Telfer

"Canada has a per capita GDP second only to Japan among the G7 countries and a positive trade balance which ranks third among the world's major economies. International trade represents a very large part of the national economy and as a proportion of GDP is larger than that of all the other G7 countries with the exception of Germany. On the negative side the Canadian current account deficit relative to the size of the economy is significantly worse than that of all major industrial countries, due mainly to the cost of servicing an immense foreign debt and to a large and worsening negative trade balance in manufacturing.The outflow of money may be reduced by increasing the productivity and competitiveness of those sectors of the economy in which Canada already has a leading competitive position and which have the potential for further growth. The mining industry is uniquely qualified in this respect in that Canada is the western world's largest producer of metals and mineral products and has the geology and the exploration skill to replenish reserves assuming that an adequate level of investment is maintained. In 1989 the minerals industry contributed $8 billion to the country's balance of payments and with the exception of forestry is the only sector of the economy which has shown consistently increasing foreign earnings over the long term.In recent years there has been a decline in exploration in Canada and a significant increase in countries such as Chile. The demand for hard currency to finance the development of the newly emerging capitalist economies of the CIS and Eastern Europe is also driving these countries to seek foreign investment to allow them to exploit their natural wealth more efficiently. Canada is therefore facing growing international competition for risk capital and in the future its trade surplus will probably decline in the face of lower cost foreign production.Canada rightly exercises a high level of environmental control on its mining operations; however a significant deterrent to investment is the fundamentally unjust application of the many provincial and federal environmental laws, under which a mining company, even if it takes every measure to protect the environment, runs the risk of eternal and unlimited future liability. If this situation is not rectified the effect will be an increase in global pollution as mines in countries with more lax application of law and regulations controlling environmental damage replace those of Canada. Tax benefits and incentives are a more efficient means than arbitrary regulations in minimizing environmental damage."

Jan 1, 1994

By C. Stapel, I. C. Tânczos, R. J. De Meijer

"Abstract -In recent years the Environmental Research Group of the KVI has been developing a number of radiometric techniques that may be employed in mineral sand exploration. These techniques involve: radiometric fingerprinting for assessing sand provenances and mineralogical composition; thermoluminescence for dating and provenance determination of sediments; a towed seabed detector to map seafloors for radiogenic heavy minerals and assessing heavy mineral volumes; and simplified transport mechanism models to explain and predict heavy mineral concentrations.All techniques exploit the property that heavy minerals as a group contain concentrations of naturally occurring uranium and thorium that are a hundred to a thousand times higher than in light minerals. In this paper the physics of a number of methods will be described together with a number of results. Based on these results potential applications to mineral exploration and mining are discussed."

Jan 1, 1994

This paper summarizes the process development behind the design of three different types of paste fill plants at operating Canadian hard rock mines. Each application has a unique paste backfill mix and process which utilizes the materials economically available to the mine site. The different plants produce paste fill composed of base metal tailings, a blend of recovered disposal pond tailings fines and alluvial sand, gold ore tailings, and a blend of gold ore tailings and alluvial sand. This work has led to the joint development by Inco and GL&V Ontario of the compaction storage mechanism for the de-watering of mill tailings to a paste consistency.

Jan 1, 1994

By S. Yuan

A large-scale work scheduling algorithm has been developed in the Mine Management Support System (MMSS) for assigning workers to prioritized jobs on a shift basis. This study basically concerned the formulation of a reliable mathematical programming model to handle the problem, the achievement of an efficient solution of the model, and the implementation of the algorithm to the worker assignment problems of a large underground coal mine. The results showed that the work scheduling algorithm can make optimal assignments efficiently. It is believed it has potential significance in improving manpower utilization and can offer great help to coal mine managers in making efficient manpower allocations.

Jan 1, 1994

By M. C. van Blerck

This paper outlines the tax provisions that became defective in January 1992, which allow a working mine to make tax-deductible contributions to a dedicated environmental body that is itself not subject to tax. Such a body will then provide a source of funding for the mine's future environmental expenditures. It is concluded that the establishment of such environmental bodies is a financially sound, tax-effective route, allowing mines, prospectors, and quarry operators to provide for future environmental rehabilitation.

Jan 1, 1994

By Ian B. Clark

In October-November 1993, the Centre for Cold Ocean Resources Engineering, Memorial University of Newfoundland and University of Victoria jointly carried out reconnaissance surveys at Pine Cove, Baie Verte, Newfoundland. Pine Cove is the site of a multi-year study examining the environmental impact of a shallow water small-scale marine placer gold mining operation. The reconnaissance survey data collected will be used to develop a multi-year environmental effects monitoring (EEM) program for Pine Cove, Baie Verte, but more generally an EEM protocol for shallow water small-scale marine placer mining, which meets the requirements of Canadian government regula¬tors such as Environment Canada and the Department of Fisheries and Oceans. The Pine Cove mining operation is currently scheduled for the summer of 1995, and will use two mining methods: a hydraulic suction dredge in shallow water (<10 meters) operated by a scuba diver, and a hydraulically actuated clamshell dredge in deeper water (-30 m). A centrifugal concentrator will be used to extract the heavy minerals from the mined marine sediments, and the tailings will be returned to the sea floor via a suspended discharge pipe. The reconnaissance work at Pine Cove included geophysical, geochemical, oceanographic and biologi¬cal surveys, providing data which will enable prediction of the potential environmental impacts of the proposed mining operation. The geophysical surveys showed the sea floor to be covered by varying

Jan 1, 1994

By Javad Koleini S M

The sources of arsenic compounds vary from As(lll) oxide produced from roasters to wastes containing arsenic from chemical or mineral processing plants. The removal of arsenic via co-precipitation with iron is currently proposed as an acce

Jan 1, 1994

A new branch of the Institute-the Zululand Branch- was formed at the end of last year. After many months of preparation and perusal of address lists, it was realized that branch serving our members north of the Tugela was long overdue. A small steering committee consisting of Messrs John Selby, Dawid de Wet Smith, and Bill Kluckow got the branch of to a roaring start. They organized the inaugural meeting, which was held at the Richards Hotel in Richards Bay on 28th October,1993. Out of a possible 70 members residing in a 100 km radius, over half attended that first meeting!

Jan 1, 1994

By G. W. Barton

Process Systems Engineering (PSE) can be defined as the integrated usage of computer-based design and analysis tools. As such, PSE is becoming increasingly important in the chemical and petrochemical industries. This paper shows how a range of PSE techniques have been applied to the zinc electrowinning process. Topics discussed include model development, parameter estimation, steady-state and dynamic model applications, steady-state optimisation and neural network modelling.

Jan 1, 1994

By Leonel Lopez

Throughout Mexican history, mining has been an important, traditional activity. Before the "Discovery of America," native miners worked a variety of deposits throughout the country, including Mixtec gold and gem mines in Oaxaca State and Aztec gold, silver and copper from mines in Michoacán. The 500th anniversary of Mining in Mexico after the "Discovery of America" was initiated by the Mexican mining sector on April 15, 1991. As early as 1548, when the Guanajuato mining district was discovered, Mexico had become a leading world producer of precious metals. Since then, Mexican mineral production has developed in cycles, responding to changing technological, economic and political conditions. During the 20th century, Mexican mine output reached its peak in the decades of the 1930s and 1940s, when it was producing about 40% of the world&apos;s silver, 15% of its lead, 10% of its zinc, 4% of its copper and 3.5% of its gold. In 1990, by way of contrast, these percentages of world output stood at 13.5% for silver, 4.7% for lead, 4.1% for zinc, 3.2% for copper, and 0.43% for gold. The lowest production levels were recorded during the 1960s and 1970s, when Mexicanization of the industry and increasing state controls weakened mineral economics to a point that mineral exploration budgets were sharply reduced or eliminated, along with the industry&apos;s future. Only the noble old mining districts continued to supply production, with occasional eruptions of "bonanzas" and new extensions in established mining districts.

Jan 1, 1994

In simple terms, heap leaching means the removal in solution of valuable elements from a heap of material, and their recovery from that solution. The heap of material can consist of essentially unprocessed ore, sub-ore, low grade gangue and country rock, tailings from other upgrading processes, or artificial materials such as slags or furnace and flue products. The solvents can be solutions of acids (commonly sulphuric acid because of cost) or of other chemicals such as cyanides. Because of cost factors the solutions are aqueous; because of this, leaching operations may be curtailed in cold-climate areas. The guiding principle must surely be `large volume / low cost&apos;. Since solutions are generally easier to manage than gases, there is a strong incentive for replacing roasting of materials by leaching, eg arsenical gold ores. Where sulphides are present in the material to be leached, these may provide the necessary acid, with or without the aid of bacteria, to dissolve and extract the recoverable metals. The mineralogical aspects of the operation relate to the nature of the `ore&apos; and gangue minerals present in the heap, their textural relationships, and their effect on the process itself.

Jan 1, 1994

By W. J. Guo

Overburden movement as a result of longwall mining can be classified into, in ascending order, caving zone, fractured zone, and bending zone. Operation experience and laboratory research have demonstrated that there are bed separations in the bending zone due to differential movement and rock mechanics properties between adjacent strata. In china several coal mines have injected flyash into bed separations to prevent strata movement and control surface subsidence. This method is very effective because it can reduce surface subsidence by 35-55%. Combining the field survey results and laboratory simulation research, the author has investigated bed separation and its mechanisms and effect of backfilling the bed separation and its mechanisms. Finally backfilling application in three mines are introduced, including grout flow chart, grouting pressure, and radius.

Jan 1, 1994

The paper reviews recent valuations of mineral properties, many of which are at an early stage of exploration. The various methods used are outlined. The problem of comparing, in terms of whether it is fair and reasonable, a highly subjective opinion of the present value of a portfolio of exploration tenements with a vendor consideration, the real value of which, in most cases, lies at some indeterminate time in the future because of the application by the Australian Stock Exchange (ASX) of escrow conditions, is highlighted. Examples are given of some of the questionable logic used by consultants in handling this difficult issue. A proposal for revision to current flotation and listing practice which, the author believes, would circumvent the problem and at the same time provide better protection for the investing public is offered for Consideration.

Jan 1, 1994

By R. K. Mehta, C. W. Schultz, R. R. Mallepali

Stirred ball mill feeds used for ultrafine grinding applications require a fine size separation step to avoid overgrinding. This paper presents the selectivity curves obtained for oil shale and complex sulfide ore using a 460-mesh (30-µm) Derrick vibrating screen. The selectivity curves generated from the experimental data show increasing selectivity with larger size for the oil shale but not for the sulfide ore. These unusual selectivity curves are similar to the mechanical air separator, fishhook selectivity curves described by Luckie and Austin. A two-stage, in series, classification model describing the fishhook selectivity curve has been used in proposing the classification mechanism for fine vibrating screens when a heterogeneous, multicomponent sulfide ore undergoes size separation.

Jan 1, 1994