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By David G. Laughton, Richard Poulin, Michael R. Samis

Real options (RO) valuation is an alternative net present value (NPV) framework that is able to incorporate both management flexibility and dynamic project risks. In this paper, management is considering the development of a satellite low-grade zone while operations in a developed high-grade zone continue. If the low-grade zone is developed prior to high-grade zone exhaustion, mine capacity must be expanded before additional production from the low-grade zone can be processed. This expansion can be avoided only if low-grade zone development is delayed until the high-grade zone is exhausted. The RO model presented here allows the development and capacity expansion decisions to be reconsidered on a discrete half-year basis. It delineates price regions, for given levels of high-grade zone reserves, in which it is optimal to develop the low-grade zone, defer low-grade zone development and abandon the mine irrevocably.

Jan 1, 2002

By Charles G. Weakly, Alan M. Lander, Pamela B. Zohar, Robert W. Leonardson

The cluster of gold deposits at the Goldstrike property is located in the Northern Carlin Trend in northeastern Nevada (Fig. 1). At many mature mining camps like Goldstrike, exploration innovation and success may wane with time. In this regard, sufficient exploration drilling was conducted in the area immediately north of the ultimate pit crest and under the final planned pit wall to test for a major deposit. No indications of large deposits were found, however, the majority of drill holes did intercept mineralization. Mining along the northern pit wall exposed significant structurally controlled ore-grade mineralization that had been missed by exploration drilling. In 2002 and early 2003, the mine geology group added reserves to the pit and improved the definition of underground resources by targeting specific ore-controlling structures within favorable stratigraphic units by utilizing relatively inexpensive horizontal RC drilling from the pit wall. The widespread occurrence of mineralization to the north of the pit was re-interpreted to be an indication of continuity of these mineralized zones. In January 2003, 70 feet of 0.332 opt Au at a depth of 710 to 780 feet was intercepted in a dewatering well. This intercept was significantly thicker and higher-grade than average for the area, which confirmed the existence of high-grade structural continuity, and helped secure management support for additional exploration. A timely and cost effective solution was needed to confirm the potential of the area. Immediate follow-up drilling on tighter grid spacing was rejected in favor of improving the geology model. Exploration across the property would benefit from an improved geology model, but to provide results in a timely manner, the area to the north of the Betze pit was chosen as a starting point (Fig. 2).

Jan 1, 2005

By Changhong Huang, Y. J. Wang

This paper describes the formulation of mine ventilation network optimization as a standard nonlinear programming problem and the solution of the problem using the generalized reduced gradient (GRG) method. In general, the GRG method is regarded as one of the most effective and efficient methods for solving large-scale nonlinear programming problems. The variables considered in the network optimization include air quantity, regulator pressure loss, and fan pressure for each branch. Each of the variables is constrained by lower and upper bounds. This facilitates proper assignments of ventilation requirements and provides a great flexibility to include various situations encountered in mine ventilation. The objective of the network optimization is to minimize the overall air power consumed by or supplied to the network; whereas the constraints are, in addition to the variable bounds, the two fundamental network laws: Kirchhoffs voltage law and Kirchhoffs current law. A computer program has been developed based on the GRG method for the network optimization. An example of network with 18 branches, 8 regulators and 3 fans is included for illustration.

Jan 1, 1993

By Richard Hogg, Erol Kaya, Jan M. Mutmansky

Characterization of the size, shape, chemical composition, and mineralogical content of mine airborne dusts generally requires a larger mass of dust particles than is typically collected using traditional sampling devices. In this paper, the general design of a passive dust collector is described and the field results are presented. The collector was constructed of galvanized sheet metal duct with a resin-coated honeycomb to provide an elutriation-type system for particle collection. Several versions of the collector were used in the field portions of the research. The dust samples collected from underground coal mines were found to possess angular particle shapes, relatively consistent size distributions, and elemental compositions that showed relatively little variation, at least for the more prevalent elements. In addition, the distributions of particles sizes obtained from the passive dust collector appear to be similar to those of samples collected at the same time in a conventional personal sampler except that the passive device seems to collect a larger quantity of coarse, non- respirable particles. Conclusions on the suitability of this dust collector for collecting characterization samples are presented. In addition, the potential for using such a dust collection system for supplying dusts for biomedical research is discussed.

Jan 1, 1993

By Dominique Francois-Bongarcon

The world mining industry is facing a severe recession. Thus, it is time to recall the value of geostatistical methods which were formerly developed as a money-saving and productivity-increasing tool. The situation has worsened, but the techniques of geostatistics have dramatically changed. Up to millions of dollars can be saved during exploration with simple use of variograms; then, during reserves estimation with kriging methods; and finally, with the parameterization of reserves, when evaluating a project and optimizing its global mining parameters.

Jan 1, 1983

By J. Smolensky, M. Paul

The Nordhalde is a waste rock pile resulting from uranium mining near Ronneburg, Germany. The pile contains over 27 million m3 of waste rock. Typical seepage water has a pH of 2.7 and a sulfate concentration of 10,000 mg/L. Geochemical investigations of the Nordhalde from 1993 to 1996 included drillholes, test pits, ABA and metals analyses, column tests, and a detailed review of the construction history of the pile. In 1996, eight drillholes were instrumented for monitoring oxygen and temperature. Monitoring continued for a fill year. Hourly temperature and pressure readings were taken by automated data recorder. Oxygen concentrations were measured three times per week, and periodic gas samples were obtained for complete analysis. The resulting data set is believed to be one of the most comprehensive of its kind. Effects noted elsewhere, such as thermal convection, are evident. However, unlike other data in the literature, the NordhaIde data shows a strong seasonal effect, with convection dominating oxygen transport only in the winter months. Analysis of the data allowed the amount of contaminants associated with ongoing and historical oxidation to be compared, and results were used to assess the potential effectiveness of proposed remediation measures.

Jan 1, 2000

By Robert A. Cortese, Carrie E. Lucci

Mine Safety and Health Administration (MSHA) regulations require underground coal mine operators to dust their mine corridors with an inert material to prevent coal dust explosions. The most commonly used material is pulverized limestone. Current practice to determine compliance with MSHA regulations requires the coal mine foreman or an MSHA inspector to collect samples of the deposited dust, a mixture of coal dust and limestone rock dust, for above ground laboratory analysis. To expedite this process, the U.S. Bureau of Mines has developed two instruments to facilitate the inspection and rock dusting processes, the explosibility meter and float dust deposition meter. The explosibility meter is a hand-held instrument which provides an in situ measurement of the explosible nature of homogeneous mine dust samples. The float dust deposition meter measures the mass loading density of the top layer of coal or limestone dust deposited on the mine floor during mining operations by the ventilation air. It may also be used to automate trickle rock dusting equipment. The operation of each device is based on the difference in the optical reflectance between the light limestone dust and the dark coal dust. The principal of the explosibility meter is based on the observation that, for a fixed coal volatility, the optical reflectance of dust mixtures is relatively constant at the limit of flammability, and independent of the coal dust particle size.

Jan 1, 1995

By Maurice L. Madden

An investigation was undertaken for a ground water discharge plan for the Chino mining complex near Hurley, New Mexico. Operations which impact ground water include dump leaching, storage reservoirs, and tailings seepage. The investigation included both hydrogeological data collection and laboratory analysis. A conceptual understanding of surface water and ground water was then developed. Surface water and ground water models were used to match existing conditions and predict the impact of operational modifications. The study concluded that runoff and resulting leach reservoir overflows were primarily responsible for the ground water degradation. Tailings seepage represents a smaller part of the impact.

Jan 1, 1984

By Erwin A. Morlan

Present methods of boring large hole mine openings are briefly reviewed. Factors that influence the design and choice of down-the-hole equipment for rotary drilling large holes are discussed. With formation drillability taken as a starting point, graphs and charts are given as an aid in the selection of bit load, circulation system, flow rate, drill stem, cutter design and rotary speed.

Jan 1, 1961

By R. J. Wesely, Corby G. Anderson, L. Ernest Krys, John B. Ackerman, A. D. Zunkel, Suzzann M. Nordwick

Processing of the refractory precious metal ore from the Sunshine Mine is done in a fully integrated hydrometallurgical facility. This operating philosophy began with the construction of an antimony plant during World War 11, and it continued with the construction of a silver-copper refinery in 1984. The antimony plant relies on an alkaline sulfide ambient pressure leach combined with antimony electrowinning and antimony compound production. This plant is the largest producer of antimony metal in the United States. The one-of-a-kind silver- copper refinery uses a nitrogen species catalyzed sulfuric acid pressure leach system. The plant contains innovative downstream silver recovery processes as well as copper solvent extraction and electrowinning. This paper presents the pertinent process chemistries and flow sheets for the two unique hydrometallurgical processing plants.

Jan 1, 1993

By V. K. Gupta

A detailed experimental study of the variations in grinding rate with particle size, particle load, ball diameter, ball load, mill diameter, and mill speed was carried out for a soft cement clinker and a hard cement clinker. The effects of the ball diameter, ball load and particle load were observed to be material (hardness) independent, and those of the particle size, mill diameter and mill speed to be material dependent. A sharp change in the grinding behavior was observed for both the clinkers at about 150 µm size. Below this critical size: (i) the hardness difference between the two clinkers became insignificant, (ii) variation in the grinding rate with particle size became markedly more pronounced, and (iii) mill speed had little or no effect on grinding rate. The importance of these results in the context of process optimization and control is discussed.

Jan 1, 1987

By Y. J. Wang

This paper describes a procedure for solving the generalized system of n network equations in n unknowns considering the following ventilation variables and parameters: (a) air quantities, (b) pressure losses or gains caused by the control devices (i.e., fans or regulators), (c) resistance factors, (d) natural ventilation pressure, and (e) fan pressures (as a function of air quantities). The air quantities and pressure losses for all branches in the network are grouped into dependent and independent variables. The branches with an independent quantity are contained in a chord set, and the branches with a dependent pressure loss are contained in a chord set. In addition to the problem formulation, the solution procedure, applying the Newton method, is discussed and illustrated with a numerical example.

Jan 1, 1989

By Gao Zhinzhong, Gu Zhengxing

China abounds with phosphate resources, but most of them are of old geological age, have high dolomite and other impurities, and are fine grained. Prior to beneficiation, fine grinding is usually required for liberating impurity minerals from phosphate. These deposits are perhaps the most difficult to treat phosphate ores in the world. In its 30-year campaign for efficient utilization of indigenous phosphate resources in China, the Lianyungang Design and Research Institute (CLDRI) has developed fine-particle flotation technology for beneficiation of such low-quality phosphate ores. The processes of direct flotation using L or S series depressants and carbonate flotation have been successfully applied on industrial scale with very satisfactory results. This paper introduces three phosphate beneficiation practices in China: the Jinping plant of Jiangsu province, the Dayukou plant of Hubei, and the Wengfu plant of Guizhou.

Jan 1, 1999

By G. Y. Li, D. Farahmand

The dilemma of a numerical analyst not only concerns the problem of modelling the non-linear behaviour of intact rock, but also the non- linearity contributed by structural discontinuities. In this light, it is the intention of this paper to examine some aspects of the non-homogenity and structural discontinuities of rock and incorporate this behaviour into boundary element numerical solution. Non-homogeneous material is considered piecewise, thus homogeneous and is modelled by using sub-regions. The Mohr- Coulomb failure criterion is employed to model the non-linear behaviour of the major discontinuities. A computer program is developed based on the procedure for combining the direct boundary element method and the displacement discontinuity method. A linear element type is employed in the formulation of numerical solution. The computer program is used to study the stress distribution in a gold mine.

Jan 1, 1986

By K. Lapakko

Kinetic tests results are influenced by methodological variables, including test duration and mine waste particle size. Some samples tested produced neutral drainage in kinetic tests for more than two years prior to drainage acidification. The potential for long "lag times" can be assessed based on the mine waste mineralogy. The lag time duration can be estimated using this mineralogy in conjunction with dissolution rates observed in the kinetic tests. The influence of particle size on the drainage quality is dependent on the variation of the availability of acid-producing and acid-neutralizing minerals with particle size.

Jan 1, 1998

By S. L. Bessinger

In the design and specification of a ventilation system for an underground mine, it is necessary to make reasonably accurate estimates of the pressure losses in the various airways of the mine. These estimates can be made with little difficulty for open airways with simple geometric cross-sections, such as those cut by continuous miners or tunnel-boring machines. The situation is much different on a longwall face, where the airway's complex geometric cross-section and the presence in the airway of obstructing equipment having a variety of shapes make it difficult, if not impossible, to estimate pressure loss using traditional methods of calculation. Headlosses in mine entries are calculated using Atkinson's Equation (1). [H = (English) H = (SI) (1)] where H = pressure ,loss, in. of H20 (Pa) K = friction factor, lbf min2/ft"4(Kg/m3) P = perimeter, ft. (m) L = airway length, ft (m) Q = airflow quantity, ft3/min (m3/sec) A = flow cross sectional area, ft2 (m2)

Jan 1, 1987

By Kenneth S. Johnson

High-purity gypsum of Permian age crops out in three major gypsum districts of western Oklahoma. The northwest and southwest districts have important reserves in the Blaine Formation, whereas reserves of the west-central district are in the Cloud Chief Formation. Gypsum beds of the Blaine Formation typically are 10 to 30 feet thick, 95 to 99 percent pure, and interbedded with shales that are 2 to 30 feet thick. The base of the Cloud Chief Formation consists of a massive bed of gypsum that typically is 20 to 100 feet thick and is 92 to 97 percent pure. Anhydrite is present in the sulfate beds, beneath 20 to 100 feet of overburden, at a number of places in all three districts. Total gypsum reserves in the three districts are estimated at 48 billion short tons. These reserves are well suited for open-pit mining or quarrying, because gypsum typically forms hills in the semiarid climate of western Oklahoma, and the gypsum layers are nearly flat lying, without folds or faults. Seven companies currently mine a total of 1.0 to 1.4 million tons of Oklahoma gypsum each year for wallboard, for plaster, as a retarder in portland cement, and as a soil conditioner.

Jan 1, 1978

By B. Farshadi, B. Asi, M. J. Habibian

"In this paper, the most significant environmental aspects that are identified in the Taft Copper Project (TCP) are the quality and quantity of water, pollution of the existing watercourses and post-mining land use, matters such as air and noise pollution are deemed to be of less significance. Analysis has been performed for Do Nothing Alternative, Pre-stripping Phase, Mining Phase, Closure and After-use Phases. Analysis of the environmental assessment of TCP was carried out in three stages. In the first stage, the general negative and positive aspects of the project were identified. In the second stage the intensity, magnitude and significance of the environmental impacts of the project were identified. The third stage is related to the final conclusions of the assessment team and the relevant reasoning. A modified Leopold Matrix was adopted for evaluating the significance and magnitude of the environmental impacts. For this project, the matrix was modified to allow the assessor to take account of negative and positive numbers."

Jan 1, 2011

By K. Norrena, E. Magri

An important problem in mine operations is the classification of material as waste, low-grade stockpile and ore. This classification must often be made with blasthole data that are widely spaced and that have sampling errors. Geostatistical-simulation techniques combined with basic economic principles allow a procedure for classification that maximizes the expected profit. Geostatistical-simulation methods (Gaussian, indicator or annealing-based) allow the integration of hard and soft data in the creation of alternative, equally probable realizations of the mineral grades. At each location, for each realization one calculates the "profit" if the block were to be classified as ore or waste. The optimal classification is the one that maximizes expected profit (a maximum profit selec¬tion or MPS procedure). In this paper, the authors discuss the theoretical justification of the method and implementation details. The use of blasthole data from different types of mineral deposits, that is, different levels of continuity, are considered. The authors also show the efficacy of the procedure with different levels of sampling error. The increased revenue due to the MPS procedure and improved sampling is shown. The paper shows the geostatistical-simulation procedure and the uncertainty in block grades that result from incomplete and imperfect sampling. The optimal classification is presented. Optimal block classifications are transferred to realizable dig limits by hand-drawing polygonal boundaries. The results of the proposed method are compared to classification based on kriging. Limitations and areas of future work are identified.

Jan 1, 2000

By Eivind B. Jensen

Introduction Though temporarily shutdown due to the depressed economy, the Henderson mine is a large underground molybdenite producer, using a continuous panel-caving mining system. The location of the ore body requires access from the surface through three shafts, the collars of which are located about 3.15 km (10,350 ft) above sea level. At this altitude, normal temperatures are such that heat must be added to intake-ventilation air for about half of each year. This prevents ice from building up in the intake shafts, waterlines from freezing underground, employee discomfort, and equipment-related problems such as pneumatic rock drill icing and cold starting of diesel engines. Because of topographic and environmental constraints, the Henderson mill and concentrator are located 24 km (15 miles) from the mine, on the west side of the Continental Divide. All ore from the mine is transported to the mill by an electrified rail haulage system, with 15.4 km (9.6 miles) of the trip being underground through a double-track tunnel. A shaft at the midpoint of the tunnel exhausts air drawn from the mine and from the portal that is at an elevation of 2.7 km (8,950 ft). Intake air at the portal must be heated for part of the year to prevent ice buildup. Mine Ventilation System The mine ventilation system uses three sources of fresh air and two exhausts. The primary freshair intake is No. 3 shaft. It is concrete lined to a diameter of 7 m (23 ft) for a total depth of 698 m (2,291 ft). An airflow of 755 m3/s (1.6 mil¬lion cfm) is supplied to this shaft by two vane-axial 932-kW (1,250-hp) fans on the surface. The air is distributed within the mine by means of fresh-air distribution levels connected to production and development levels by raises. A secondary source of fresh air to the mine is provided by No. 2 shaft, the primary man and material access. This shaft is concrete lined to a diameter of 8.5 m (28 ft) for a total depth of 946 m (3,105 ft). Downcast airflow is induced by a pressure differential produced by the fans in the system such that net intake and exhaust volumes are equal. The No. 2 shaft flow of 165 m3/s (350,000 cfm) enters the mine network from the production and haulage levels. Exhaust air is moved from the various working levels through connecting raises to exhaust col¬lection levels that return it to No. 1 shaft. No. 1 shaft is the primary mine exhaust. It is concrete lined to a diameter of 7 m (23 ft) for a total depth of 788 m (2,584 ft). Three vane-axial 932-kW (1,250-hp) exhaust fans are located at the collar of No. 1 shaft, producing a flow of 850 m3/s (1.8 million cfm). In addition, an airflow of 71 m3/s (150,000 cfm) from the intake distribution level is exhausted via the haulage tunnel, by means of No. 4 shaft located midway in the tunnel. The main features of the mine ventilation network are summarized in Fig. 1. Ventilation Air-Heat Plants No. 3 Shaft In the early design phase of No. 3 shaft, it was recognized that air heating would be required to maintain underground temperatures above 0°C (32°F) during cold winters in the Colorado mountains. When the air reaches the mining

Jan 1, 1983