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By J. Stiksma, K. Buban, J. Oftsie, R. Kalanchey, S. Sadykov, E. McConaghy

The Kazakhmys zinc refinery in Balkhash, Kazakhstan, which employs the Dynatec Zinc Pressure Leach Process, officially launched autoclave operations on December 27, 2003. The Kazakhmys plant is the world's first greenfields zinc refinery based on Dynatec's two-stage pressure leach technology. Production of zinc was realized on February 9, 2004, when the first cathode was stripped. Currently the plant start-up is ongoing, with progression to two-stage zinc pressure leach operation and ramp-up to full design capacity continuing through 2004.

Jan 1, 2004

By F. Bélanger, P. A. Fournier

"Modelling and optimization techniques used in the operation of the Detour Lake Mine leach circuit are contrasted to a 1973 review of contemporary techniques used by a major gold producer. The leach circuit at the Detour Lake Mine was modelled using a full factorial Design of Experiment of stirred tank reactor leach tests using circuit feed. Contour plots of extraction were applied in the plant to optimize addition rates of cyanide and the newly-commissioned lead nitrate system. Contour plot sections were used to understand the impact of sulphur in circuit feed at different operating dissolved oxygen concentrations. The 1973 review paper offers insight into industrially-applied modelling and optimization techniques. In particular, a mathematical model of plant data was developed using multilinear stepwise regression analysis. The model was presented using graphical representations available at the time and applied to optimize the rates of cyanide addition. Off-the-shelf software solutions of today allow mineral processors to quickly and easily visualize data, allowing them to re-allocate time and resources spent processing data to generating raw data and extracting actionable information.IntroductionModelling and optimization in mineral processing is the art of reducing reality through judicious use of assumptions to understand a process and leverage this knowledge to engineer practical solutions to metallurgical problems. Data analysis is at the core of this enterprise.While this paper showcases the modelling work done at the Detour Lake Mine (DLM), the primary objective is to pause and reflect on how far the field has progressed since the 1970’s. A snapshot of state-of-the-art gold cyanidation modelling at that time is a review paper of the Anglo American Group’s capabilities (Brittan & van Vuuren, 1973). The objective of this paper is not a play-by-play of the evolution of modelling and optimization since that time. Rather, it is a comparison of the field at two points in time.In 2016, DLM undertook an extensive bench-scale leach circuit modelling program to better understand the impact of cyanide, dissolved oxygen, lead nitrate, grind size, density, and pH on gold cyanidation (Fournier, 2016). Two major capital expenditure projects were anticipated for 2017: improvements to oxygen control and a lead nitrate distribution system. While the lead nitrate system was planned for construction, the design parameters had not yet been selected. Following the development of the model, plant trials were executed to validate aspects of the model and the methodology was expanded to address other plant issues, in particular the effect of talc chlorite and pyrrhotite in leach feed.The variables of the bench-scale study are summarized in Table 1. Dependent variables were varied using a full factorial design of experiment with two repetitions for each test condition, yielding a total of 300 tests. Test order was randomized to eliminate bias from independent variables."

Jan 1, 2018

By Ronald B. DeDiemar

This paper will present the intrinsic factors of a cone crusher that affect performance, develop and define an ideal feed gradation for a cone crusher and, finally, bring out an important new development in computer design of crushing chambers and show an ability to predict crusher performance without trial-and-error methods.

Jan 1, 1979

By Rodrigo Serna-Guerrero, Ted Nuorivaara

"As the demand of raw materials increases in a global scale due to demographic and economical changes, it is necessary to find technological solutions that improve current production processes in an efficient and sustainable manner. The main objective of this preliminary study is to evaluate the properties of foam produced with a cellulose-based molecule as an alterative to commercial frothing agents in flotation operations. There are two potential advantages identified with the use of cellulose-based additives for the proposed application: i) these chemicals can be produced from sustainable sources (i.e., non-edible crops), and ii) cellulose can be functionalized with chemical groups, in order to rationally modify its behaviour. In previous studies dealing with foam stabilization, it has been proposed that some functionalized cellulose species present a self-assembly mechanism at gas-liquid interfaces. Unlike typical surfactant-based frothers, cellulose molecules form networks around the bubbles that act as protective layers to the mechanical stress and to the occurrence of ionic species. This work studied the properties of foams produced in the presence of a partially hydroxylated cellulose molecule (i.e., hydroxypropyl methyl cellulose; HPMC) under various concentrations in a laboratory-scale column. A comparison with a commercial surfactant frother (i.e., Nasfroth 240) is presented, and a rationalization of the behaviour of HPMC in terms of foam properties (i.e., surface tension, bubble size, foam depth) is proposed. INTRODUCTIONThe search for green alternatives to chemicals produced from non-renewable sources has become a topic of major relevance in industry (Choi et al., 2015). As a chemical consuming industry, the mining sector faces now the challenge of adopting new processing technologies and strategies in order to achieve the future demands of sustainability. Evidently, a move towards green chemistry can only take place by identifying substitute molecules offering potential advantages in terms of recovery and grade."

Jan 1, 2016

By André Piché

"Over the last ten years, several developments have been undertaken to conceive a machine capable of carrying out simultaneously all the mining tasks in hard rock deposits: cutting, mucking, hauling, ground support and dust control.The main advantages of continuous mining over conventional drill and blast is the elimination of the cyclical nature of the actual methods. Other advantages sought are improved stability of mine openings, higher productivity, lower costs, and a cleaner and safer mining environment. Noranda has con-tributed to these developments in a major way. As a member of HDRK, Noranda participated in the development of two mechanical continuous mining machines; the TM60 and the Wirth. Noranda also undertook a development of its own based on the utilization of electricity to break rock. This technology is called plasma blasting (PBT). The concept of plasma blasting is illustrated in Figure 1.When the operating voltage is reached (18kV), the energy is released through a high current switch (500k A) into a coaxial powercable. It is then delivered to the tip of an electrode inserted into a drill hole which is filled with an electrolyte (water). When the energy reaches the electrolyte, it is instantaneously transformed into a high temperature, high pres-sure plasma that produces a shock wave capable of breaking rock(1).After initial testing of the plasma blasting technology in the lab and in the feld, two experimental platforms were constructed. The first one, a test bench, was erected at the Noranda Technology Centre in Pointe Claire, Quebec.(2)The second one is a rock breaker prototype based on a standard diesel-powered carrier (Fig. 2). Each platform was equipped with a 300 kJ pulsed-power module.In 1993, the rock breaker prototype was used for an extensive series of tests in the field. During that campaign, over 700 oversized boulders were blasted. The results of the tests demonstrated that more durable components for PBT were needed. The test bench was then used to successfully develop and test long-lasting components (probe, switch, cable, connector) that can be adapted to industrial platforms leading to the commercialization of the technology."

Jan 1, 1996

By Douglas R. Schmitt

In general, knowledge of the state of stress within the Antarctic lithosphere remains largely unconstrained due in part to Antarctica?s inaccessibility and because of the paucity of seismic focal mechanism solutions. As such, an important component of the ANDRILL project was to acquire new information on the stress directions and magnitudes within the upper crust. Extensive fracture mapping of the core and oriented ultrasonic televiewer logging were carried out to provide strong constraints on both stress orientations and the faulting regime. The first hydraulic fracturing stress determinations in Antarctica were also carried out to provide complimentary stress magnitudes. These measurements were accomplished using a wire-line transported hydraulic fracturing system consisting, essentially, of two synthetic polymer packers that were inflated to isolate the 1-m long pressurization interval. The tests were conducted at the end of the drilling and logging in a ~130-m section specially drilled below 1000 mbsf (nearly 1500 m from the rig floor) for hydraulic fractures. This zone was drilled primarily through competent, dense, and low permeability diamicts. The core fracture and televiewer logging information was used to site twenty separate measurements. Classic hydraulic fracturing pressurization records with unambiguous breakdown and fracture closure pressures were obtained in about half of the measurements. The remaining tests provided fracture propagation and closure pressures that are consistent with the classic breakdown curves, but they did not include a clear breakdown pressure and are indicative of the reopening of either natural or drilling induced fractures in the wellbore wall. The preliminary analysis of the results are in generally good agreement with the stress directions indicated by the core fracture logging and the stress regime suggested by the character of the drilling induced core fractures.

Jun 1, 2012

By R. Lasmanis, W. C. Utterback

"The Mount Tolman porphyry Mo-Cu deposit is 64 km south of Republic, Ferry County, Washington. It occurs in the composite Keller Butte pluton, which consists of the Keller Butte porphyritic biotite granite and granodiorite, the Mount Tolman quartz porphyry granite, and the Meadow Creek biotite granite phases. The three phases range in age from 61.3 Ma ± 2.3 Ma to 55.7 Ma ±2.0 Ma. The stockwork deposit occurs in the Keller Butte phase above the contact with the Mount Tolman quartz porphyry granite.Mount Tolman is a hybrid calc-alkaline deposit that has features of both a Climax-type and a plutonic type. Prior to post-ore faulting, the deposit had a flattened hood like shape. In plan it is elongated- 1.6 km wide, 3.2 km long, and up to 609 m thick. The orebody has a 292 o strike. It contains a geologic reserve exceeding 2.18 billion tonnes of ore averaging 0.093% MoS2 and 0.09o/o Cu using a 0.048% MoS2 cutoff. Of this total, 816 million tonnes of measured and indicated ore averaging 0.097% MoS2 and 0.09o/o Cu could be mined by open pit with an overall waste-to-ore ratio of 0.91 to 1.The deposit is a stockwork of quartz and quartz-sericite-pyrite veins and fracture fillings that contain molybdenite, chalcopyrite, sphalerite, and magnetite. Five separate episodes of fracturing and mineralization produced the orebody and were followed by four additional episodes of fracturing with sulrgrade mineralization. The Mount Tolman deposit contains propylitic, argillic, phyllic, topaz greisen, and potassic alteration zones. Extensive silicification overlaps the K-feldspathized, quartz-topaz, and phyllic alteration zones."

Jan 1, 1995

By F. Bosché

Previous research has shown that ?Scan-vs-BIM? systems are powerful to provide valuable information for tracking structural works (progress, quality, safety). However, the transferability of this capability to other construction areas such as MEP works has not been assessed so far. Comparatively, the construction of MEP systems, in particular pipes and ducts, tends to be more flexible with respect to the positioning of individual components, so that Scan-vs-BIM systems could be defeated when tracking MEP installation works. This paper presents recent results on the feasibility and performance of using a Scan-vs- BIM system to track MEP works. The approach followed is presented and then tested with two real-life challenging case studies were conducted simultaneously but totally independently in Canada and Italy. The results show that, as expected, pipes and ducts tend to be more loosely positioned than structural elements leading to a poorer performance of the Scan-vs-BIM system. Nonetheless, it appears that the system works well to assess the level of conformance of site installation works, providing valuable information for estimating emerging performance metrics like ?percent built as-designed?. In addition, the proposed system could also be useful to accelerate and thus reduce the cost of delivering as-built BIM models for in the case of new builds.

Aug 1, 2013

By A. J. R. Smith

"CANADA'S ECONOMY TODAY is about two-fifths larger than it was six years ago, as measured by the total volume of production of goods and services. Such an achievement has been a rare phenomenon in Canada's first one hundred years. Excluding the forced-draft expansions which took place under war-time conditions, perhaps only the first decade of this century recorded a performance of greater dimensions, when, with massive immigration, the opening up of the West and a powerful array of well-de-signed development policies, the country was looking forward confidently to a great future of nation-building in the twentieth century.What makes Canada's over-all economic advance since 1961 all the more remarkable is that six years ago there was virtually no one in this country who anticipated an expansion of such dimensions. Back in the buoyant conditions of 1956-57, perhaps such an achievement would not have seemed beyond our grasp. After 1957, however, Canada stumbled through an extended period of slow economic growth, high unemployment and substantial and widespread under-utilization of its productive capacity. By the early 1960's, conditioned by the emergence of substantial, persistent and pervasive slack in the economy, t h e r e were few Canadians bold enough to anticipate that their economy was about to embark on a Great Expansion. However, this •is, in fact, what occurred. Beginning early in 1961, Canada moved forward into a sweeping advance which grew into the longest and largest peacetime business expansion in Canada's first century as a nation -a truly great expansion by any standard of measurement. This strong thrust has moved Canada into the front ranks of over-all economic expansion among the industrially advanced nations in the 1960's."

Jan 1, 1970

By A. W. White

Introduction To discuss all the technical details of incorporation laws, security laws, underwriting procedures, codes, and ethics-as laid down by varous associations -would be impossible in the time which has been allotted to me. My remarks, therefore, will be made in a very general way and will naturally be coloured with experiences which my firm and I have had. There is a common expression that "money makes the mare go". I hardly have to mention here that the best prospect in the country is of very little value unless its prospects can be developed-and this requires large capital expenditures. The art and problems surrounding the raising of this money is a long and interesting story. Since by its very nature mining is risky, the appraising of its risks in the many phases of its development programme is continuous. Very few men-if any-and very few corporations -if any -can afford to take all the risk of mining. Because of taxation policies-and the very scheme of present-day living -the truth of this statement can be seen throughout the whole industry by a close examination of the records. Since this is so, it is essential that the mechanics of distributing risk on a sound, and equitable basis be known to those engaged in the business and to the investor or spectator who proposes to risk his funds in the industry. Perhaps the greatest stimulant to modern business activities has been the creation of corporate bodies. It is evident, from the number of charters being granted by various jurisdictions, that this method of doing business is becoming more and more important. A limited company -or corporation-can be defined as a fictitious person existing solely in contemplation of the law.

Jan 1, 1951

By Paul L. Broughton

"IntroductionThe coal deposits, all of lignite rank, of economic interest in Saskatchewan are associated with the Ravenscrag Formation (Paleocene). Several Cretaceous formations have less significant lignite accumulations (Broughton, Irvine and W'hitaker, 1974). The Swan River Group (lower Cretaceous) and Judith River Formation (upper Cretaceous) have the only coalbearing strata in the shallow subsurface of central Saskatchewan. The Swan River Group coalfield is relatively small and underlies only 15 sq km of the surface approximately 40 km south of La Ronge, Saskatchewan. An estimated 36 billion short tons are within 45 m of the surface. No reserve estimates are known to have been calculated for the coal-bearing Judith River Formation exposed at the surface in the vicinity of the South Saskatchewan River valley in west-central Saskatchewan. Although no coalfields have been delineated, lignite beds up to 1.8 m thick have been intersected in test holes. The coal-bearing upper Cretaceous and lower Tertiary strata of the northern Williston Basin extends the full width of southern Saskatchewan for 650 km, and from the United States border 120 km north to 50° latitude (Fig. 1). Only the coalfields of the Ravenscrag Formation, because of their economic interest, will be considered further. There are four major coalfields. They are, from east to west: Estevan, Willow Bunch, Wood Mountain and Shaunavon (Cypress) coalfields. Cumulative lignite seam thickness for each basin is 10 -15 m (Figs. 2 and 3). The origin of each coal basin, resource calculations, seam stratigraphy, and mining activity are discussed. Regional Setting The Williston Basin is an ellipsoidal depression in the Precambrian basement, centered in western North Dakota and marginal to the exposed craton of northern Saskatchewan and central Manitoba (Fig. 1). The sediments of the basin range from Cambrian to Pleistocene in age and have a maximum known thickness of 4614 min western North Dakota. A maximum of 3200 m is recorded in southern Saskatchewan. Most structural deformation is late Cretaceous to early Tertiary (Paleocene) in age, coinciding with the Laramide Orogeny. The pre-Laramide Williston Basin, with a depocenter near Williston, North Dakota, began developing during the middle Ordovician, or possibly earlier."

Jan 1, 1985

By W. H. Gross

To pollute means to make impure or unclean. We tend to forget that man defecates, urinates, sweats, expectorates and exhales and in himself is a beastly little pollutor-but then so is Mother Nature! The object of this paper is to try to put what man and nature do into perspective. The facts indicate that although man may sweat a little, Ms. Nature is by for the greatest pollutor of all.

Jan 1, 1979

By A. R. Laplante

Gold recovery early in the flowsheet, typically from the primary grinding circuit, has seen significant advances in the past three years. Some of the advances achieved under the auspices of the AMIRA P420B Gold Processing Technology project are reviewed. The areas covered are gravity-recoverable gold (GRG) characterization, GRG behaviour in classification, gravity recovery simulation and the link between gravity recovery and cyanidation.

Jan 1, 2005

By E. W. Lucht

THE term "high pressure", as used in industry today, is applied rather loosely. Generally, it refers to pressures that are higher than those encountered in most industrial processes although no definite limits are normally stated. For the purpose of this talk I should like to set rather arbitrary limits to the term "high pressure", and in ab-solute figures this would be the range from 1000 psi to perhaps 40,000 or 50,000 p.s.i. The scope of high pressure technology is very broad, and it would take more time than we have avail-able here today to cover fully even one aspect of the field. Therefore, I should like to discuss just some of the techniques used and problems en-countered in high pressure operations. Research work into the high pressure region dates back about 150 years, but it was not until 1910 that the first commercial application of high pressure technology was made in the production of ammonia.

Jan 1, 1962

By A. Dubé

Introduction It is common experience that on re-heating a fully martensitic steel below the Ac, point, a softer and tougher structure is formed as the tempering temperature is raised. The mechanism of tempering of plain carbon and low-alloy steels has been the subject of many investigations. In a very comprehensive study, Cohen and associates have recently established three different tempering stages, the last of which reaches completion at about 700°F., with heating rates of 5°F. per minute. This latter stage has been established ta be the carbide-forming stage, so that the steel consists of a mixture of ferrite and carbide, which are the metastable equilibrium phases. Any subsequent changes which take place at higher temperatures below the Ac, point in the absence of graphitization or carbide lattice conversion normally consist of agglomeration of the carbide particles. This naturally results in the softening of the steel. However, in many cases the Ac, point, as determined by dilatometry, thermal analysis, etc., only gives a rough estimate of the temperature where the reaction, ferrite plus carbides to austenite, is initiated. This appears to be especially true in the case of alloy steels in which three phases can co-exist in certain temperature ranges. Bain has given data on the three-phase equilibrium in both manganese and nickel steels. In these steels, the formation of austenite at temperatures just above the AeIL apparently involves the diffusion of the alloying elements to the first pools of austenite, thereby making the process very sluggish. As a consequence, the critical Ac points determined by ordinary methods at normal rates of heating can be quite distant from the true equilibrium Ae temperatures.

Jan 1, 1946

A pilot scale AG milling campaign was conducted at the AngloAmerican Platinum pilot plant in South Africa. Different blends of hard:soft (silicate:chromite) and coarse:fine particles in the AG mill fresh feed were tested. The effects of multi-component feed on the pilot scale autogenous grinding are presented in this paper, and can be used as a guideline for multi-component feed blends for AG milling. Preliminary modelling and simulation for the multi-component AG mill model are also included.

Jan 1, 2012

By Sangjian Zhang, Zhu Xiao, Lairong Xiao, Rushi Chen, Mei Fang, Zhou Li

The copper-graphite metal matrix composites were fabricated by two different production methods: directly sintering with copper and graphite (Cu-Gr composite), and in-situ sintering with cuprous copper and graphite (Cu2O-Gr composite). During the in-situ reaction sintering, a redox reaction occurs at the interface of the Cu2O particles and Gr particles, resulting in the improved physical and mechanical properties of Cu2O-Gr composites. Compared with Cu-Gr composite, Cu2O-Gr composite has a higher compression strength at any given graphite content due to the improved interface bonding and uniformly distributed fine graphite particles in the matrix. Increasing graphite content decreases the mechanical properties of the copper-graphite composites. The compression strength of Cu2O-Gr composite is 50-100 MPa higher than that of Cu-Gr composite. INTRODUCTION Copper-graphite composites have been widely used in industry due to their low density, relatively high strength and hardness, good thermal and electrical conductivity, arc ablation resistance and self- lubrication ability (Grandin & Wiklund, 2018; Han & Xu, 1999; Huang et al., 2017). Electric sliding contact friction pair in the high-speed railway system and motor brush in electric contact components have a very high demand on electrical conductivity and self-lubrication ability of materials. The electric devices need to bear both mechanical load and high electric current. Copper-graphite composites with good mechanical, electric and self-lubrication properties are the best candidates for application in multifunctional electric sliding contact frication components. The relative sliding speed of friction pair is developing towards 100 m/s or even faster, which can withstand the electric flow of more than 800 A, and it is often accompanied with vibration and impact (Guo & Ding, 2008). Conventional wear-resistant materials can no longer meet the current requirements and this promotes the development of copper- graphite composites with excellent comprehensive properties (Ding, Chen, Zhu, Zhang, & Zhou, 2009; Yasar, Canakci, & Arslan, 2007). There are many ways to fabricate copper-graphite composites, mainly including powder metallurgy method, liquid immersion infiltration method, rapid sintering method and electrodeposition method (Kalin & Poljanec, 2018; Kim, Lee, & Han, 2014; Liu et al., 2018; Wang et al., 2018). Each method has its own advantages and disadvantages, and the powder metallurgy method is the most commonly used one due to its simple process, high economic benefit, and industrial production applicability. The common steps of the powder metallurgy method are as follows (Samal, Parihar, & Chaira, 2013): firstly mixing the copper (copper alloy) powders and graphite with a certain ratio, following by die-forming, and then sintering at the high temperature with or without pressure. The advantage of copper-graphite composites is that the graphite distributed in the copper matrix uniformly and it can form a carbon diaphragm preventing the wear of the composite (Fu & He, 2010). However, the bonding strength of the interface between the copper matrix and the graphite is relative low as the combination between them is mechanical interlocking but not metallurgical bonding (Ma et al., 2008). It is meaningful to develop new fabrication technology of copper-graphite composites with better interface bonding, which could provide guidance for the design of copper-graphite composites with excellent comprehensive properties.

Jan 1, 2019

By R. G. L. McCready, R. O. van Everdingen, M. Kalin, R. van Everdingen

"This paper is based on data generated between October, 1986 and October, 1989, during the implementation of an Ecological Engineering close-out for a zinc mine in Northern Ontario, where 690000 tonnes of tailings contain 41.1% pyrite and 4.1% pyrrhotite. The objective was to determine rates of sulphide oxidation and iron precipitation in the tailings. Those rates are relevant for the assessment of the long-term effectiveness of biological systems employed in the removal of heavy metals from contaminated drainage issuing from tailings.Data were collected on the topography and stratigraphy of the tailings basin, subsurface temperatures and groundwater levels, and chemical analyses were made of water samples collected from a number of piezometers. The thickness of unsaturated tailings varied widely between individual piezometer locations; annual maxima ranged from 0.67 m to 3.55 m, and annual minima from 0 to 2.68 m. Sulphate concentrations ranged from 36 mg/L to 20180 mg/L; iron concentrations from 0.36 mg/L to 9938 mg/L; and zinc concentrations from 0.33 mg/L to 1123 mg/L.The geochemistry of the piezometer samples suggests that some of the initial Fe content, resulting from metal sulphide oxidation, is subsequently precipitated in the tailings pile and, possibly, in the underlying unconsolidated sediments, probably in the form of iron-hydroxide and Na-jarosite. Other metals such as Zn may be co-precipitated with Fe. The discharge of a portion of these metals to the environment would be delayed by this process. Some of the initial sulphate may also be lost from solution, probably by precipitation of gypsum; approximate saturation degrees for gypsum ranged from -3.27 to +0.47. The precipitated minerals will somewhat decrease the porosity and permeability of the tailings.Sulphide-oxidation rates, calculated using the analytical results and the estimated amount of annual recharge at the tailings site, average 0.0057 mol/kg/yr. Calculated iron-precipitation rates average 0.000386 mol/kg/yr. It is concluded that the characteristics of seepage from mining wastes may change with time, reflecting the solubilization of precipitated secondary minerals."

Jan 1, 1992

By Qing-Xun Low

Ni current collector has excellent electronic conductivity and mechanica, properties. However, nicke, cannot be used in H2S-containing syngas SOFCs due to sulfur poisoning and coking. Copper coated nicke, is prepared by electrochemica, deposition. XRD, SEM, and EDX techniques are used to characterize the samples. After high temperature treatment in syngas containing, the coated samples exhibit high resistance of coke formation and sulfur corrosion compared to pure nickel. Therefore, copper coated nicke, is a promising anode current collector for H2S-containing syngas SOFCs.

Jan 1, 2010

By Michael Samis

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more fundamental level by their differences in risk discounting. Real option valuation applies the risk-adjustment to the source of uncertainty in the cash flow while the DCF method adjusts for risk at the aggregate level of net cash flow. This seemingly small difference is the reason why the real option method is able to differentiate between projects according to each project?s unique risk characteristics while the conventional DCF approach cannot. This paper provides an overview of the real options and DCF valuation frameworks and discusses the differences in risk discounting that exist between the two methods. Using grade-school mathematics, this paper clearly demonstrates how, with real options, a unique project risk discount can be calculated which is directly linked to the project?s unique risk profile. It also highlights why the DCF method fails in this regard and shows why a call to ?increase the Risk-Adjusted Discount Rate? is an incomplete solution at best. Finally, a heap-leach project and satellite reserve development project are valued with both techniques and the difference in investment conclusions is explained in terms of the risk-discounting concepts discussed here.

May 1, 2003