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"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By C. Kunze

ABSTRACT Although closure sureties cover works that are carried out during the existence of a mining company, certain liabilities are not known when the surety is established and become apparent only in a late stage of the closure phase, or even after the site has been relinquished. This paper supports the concept that these financial risks lend themselves to insurance solutions. Making insurance for unknown liabilities mandatory while defining unambiguous legal conditions could create a viable market for insurance products, provide a sufficient statistical basis for the calculation of premiums, and reduce costs.

Jan 1, 2013

By Alan Jessop

A small group has been set up at the Dominion Observatory, Ottawa, to make a survey of terrestrial heat flow throughout Canada. Terrestrial heat flow is the heat rising from the interior of the earth and escaping at the surface, and is calculated from a knowledge of under-ground temperature distribution and the thermal conductivity of rocks. A small number of diamond drill holes are being sunk for the purpose of measuring temperatures below the surface, but the program is inadequate for a thorough survey. Mines and holes drilled for other purposes are being sought by the Dominion Observatory group to supplement their own drilling program. F ROM January, 1.962, to December, 1964, geo-physicists of many nations will be cooperating in the "International Upper Mantle Project." Unlike tl1e International Geophysical Year, which was mainly concerned with the fluid layers surrounding the earth, the Upper Mantle Project is an intensive study of the solid earth. Canada, with its large land area and extensive Precambrian Shield, is an active participant in the project.

Jan 1, 1964

TRE ? worldwide leader in InSAR ? Spinoff of Polytechnic University of Milan ? Numerous patents for cutting edge technology (e.g. SqueeSAR?, PSInSAR?) ? Focus solely on InSAR with over 13 years experience ? ISO 9001 quality certification ? Powerful scalable parallel processor to handle all jobs What can InSAR provide for mining? An advanced suite of tools for monitoring ground deformation over mine sites: ? Deformation maps ? A dense network of measurement points ? Time series ? Cross sections of surface profile evolution

Aug 1, 2013

By E. M. Cameron

Reconnaissance radiometric and geochemical data have been obtained for an area on the western shore of Wollaston Lake that includes the Rabbit Lake uranium deposit. The study area is extensively drift cover ed. The geochemical data were obtained by analysis of center-lake sediments and surface waters for a variety of elements and other constituents. The airborne radiometric data comprise measurements of eU, eTh and K obtained with a .50,000-cc NaI (Tl) detector at a mean terrain clearance of 120 m and 5-km flight-line spacing. Uranium in lake sediments and uranium in waters are the most effective geochemical indicators of uranium mineralization; the other elements measured are not notably anomalous. A sample site density of one per 1 8 km 2 is more than adequate for identification of the mineralized area. Because many water samples contain close to or below the current analytical detection limit of 0.05 ppb U, the use of sediments is generally favoured. for broad-scale reconnaissance in the region. Uranium in these lake sediments appears to be little influenced by variations in the organic or iron and manganese content. The most effective radiometric indicator of the mineralization is the eU/eTh ratio. This parameter is less influenced by environmental variation on the ground beneath the flight line than eU alone . The eTh/K ratio is anomalous under the Athabasca Formation unconformity where, in places, the uranium mineralization is localized.

Jan 1, 1977

By O. A. Carson

Introduction Although the equilibrium conditions of the copper-tin alloys have been the subject of a ?great amount of research, the equilibrium diagram is still in doubt. The first systematic investigation of the series was made in 1894 by Le Chatelier, who published a freezing-point curve. In 1895, Roberts-Austen and Stansfield published the complete liquidus and partial solidus curves, which they modified somewhat in 1897. Their liquidus as given in 1897 is essentially that accepted today (Figure 3). Haycock and Neville also published a liquid us curve in 1897. In 1898, William Campbell published a series of micrographs showing the changes in microstructure which accompanied the thermal changes of Stansfield? s diagram. The classic work on the bronze series was published by Heycock and Neville in 1903. Their diagram was based on both thermal and microscopic evidence, and is the first for this series of alloys which can be considered nearly complete. Further, it was the first bronze diagram in which any attempt was made to apply the phase rule in the interpretation of the thermal and microscopic results. That portion of Heycock and Neville's diagram covered by the present work is reproduced in Figure 7.

Jan 1, 1929

By H. Memarian

In the last few decades, many developing countries have tried to expand and improve upon higher education, which is acknowledged to be the leading factor for development. In this respect, develiping countries have significantly increased the number of tertiary institutions and their students. These rapid expansions, along with all the benefits, have drawbacks as well. An example is the status of mining engineering education in Iran. Presently, the number of active mining engineering departments in Iran (27) is more than the sum of similar departments in Canada, Australia, the United Kingdom, and South Africa (23 altogether). Also, the number of annual mining graduates in Iran (645) is more than the cumulative graduates of the United States, Canada, the United Kingdom, and Australia (613). The expansion of mining engineering education in Iran has coincided with the closing or merging of similar mining departments, as well as a decline in the number of interested students in the industrialized world. The present study shows that the need for development and the excessive number of high school graduates, resulting from high population growth in the early 1980s, are the two primary factors influencing the significant expansion of mining engineering education in Iran.

Jan 1, 2007

By The Staff

The San Anconio mine, owned by San Antonio Gold Mines, Limited, is located on the north shore of Rice lake, thirty miles east of lake Winnipeg, and about one hundred miles northeast of the city of Winnipeg. The three claims which formed the original San Antonio group were staked in 1911. Subsequent additions to the Company's property have in-creased their holdings co thirteen claims. Preliminary development of the property took place between 1925 and 1930. The major ore discovery during this period was the 16 vein. The mine was closed in September, 1930, but re-opened in April, 1932, since which rime it has been in continuous operation. In 1933, a development of special importance was that of the 26 vein. The mill capacity, originally designed for 150 tons, was increased to-wards the end of 1933 to 170 tons. With highly satisfactory mine development, mill enlargement to approximately 300 tons was made possible. The Company has financed the additions and improvements from mine production. Iris of interest to note that San Antonio is the first gold mine in Manitoba to pay a dividend. The first dividend was paid to the shareholders in March, 1934, and the fourth was recently declared. Electric power is transmitted to the property from the Great Falls plant of the Manitoba Power Company over a 66,000-volt transmission line approximately 62 miles long. The old camps, which had been in use since work on the property was started, in 1927, were demolished in the spring of 1934, and new camps were built on the Ross dam. Lumber for these buildings was out at the Company's saw-mill on Gold creek, eight miles from the mine. Two bunk-houses with a capacity of 72 men each were constructed, also a dining room co accommodate 144 men, a store, staff house, hospital, burcher shop, and warehouse. The camp buildings are all steam-heated from an electric boiler. They are all insulated on walls, roofs, and floors with a heavy building board, and are covered on the outside walls with asbestos siding, and on the roofs with corrugated iron. A community of about 800 persons has grown up around the mine, at Bissert. Attention has been given co their social interests, and the management of the mine has assisted its employees co build a community hall, which is used for dances, picture shows, and other entertainments and amusements. A two-room school, with an attendance of 50 pupils, is supported by Company employees. In addition, picnics, boxing contests, and hockey games are encouraged among the employees.

Jan 1, 1936

By J. M. Cummings

DURING the past year, the writer has investigated the treatment of a variety of British Columbia tungsten-bearing ores. Much of the test-work described in this paper was carried out in collaboration with Mr. A. G. Lyle in association with the British Columbia War Metals Research Board at the University of British Columbia. The remainder was completed in the laboratories of the Department of Mines at Victoria. Two mills in the Province are at present treating tungsten ores. Descriptions of these are included through the co-operation of Messrs. S. Gray (1) and A. A. Almstrom (2). MINERALOGY, OCCURRENCE, AND SPECIFICATIONS In the present paper, attention is directed solely to scheclite, inasmuch as known occurrences of other tungstcn minerals in British Columbia are of mineralogical interest only. The properties of scheclite are listed below: Percent W03 .. 80.6 Tenacity ...... Very brittle Çrystallization Tetragonal Lustre ........ Vitreous to resinous Cleavage ...... Good in 4 directions Magnetism ... Non-magnetic Specifie gravity 6.05 Diaphaneity .. Transparent to translucent Hardness. . . . . . 4.5-5.0 Scheelite may contain as much as ten per cent of molybdenum in solid solution, but most of the specimens from British Columbia examined by the writer were relatively pure.

Jan 1, 1943

By A. E. Wraith, R. Harris, J. Qiu, R. Parra

Small pilot scale experiments have shown that it is possible to almost fully eliminate the minor elements (ME), namely As, Sb, Bi and Pb contained in smelter dusts by vacuum calcination of mixtures of the dust with sulphidizing agents such as dirty copper concentrate or elemental sulphur at 900 °C and 80 +/- 30 Pa for 90 minutes. The products of this calcination are a residue comprising a purified mixture of copper containing compounds along with the gangue constituents and a high sulphur condensate comprising a mixture of the minor element compounds. In particular, the Cu:ME ratios of the concentrate and dust were increased from 250 and 50, from 28 and 12 and from 36 and 8 to roughly 3000, 3000 and 100 for the calcine, for Bi, As and Sb, respectively. It has also been calculated that (i) the copper content of the vacuum calcine may be recovered by feeding it into a Peirce-Smith converter during its slag blow, and (ii) the resulting recycling could increase the minor element treatment capacity of a smelter by 100 % while also reducing the blister As content by a factor of three. The experimental results are briefly discussed and a treated dust recycling option is examined. Example operating conditions are presented and available commercial technology for the vacuum calcination of the mixtures is reviewed.

Jan 1, 2007

By A. G. Matyas

Process improvements which have reduced the lead content of slag from the Brunswick lead blast furnace are described. Microscope examination and electron microprobe analyses, supported by the results of slag settling and viscosity tests, showed that typically about 70% of the lead in the lead blast-furnace slag was present in the form of entrained prills of metallic lead. The total lead content was found to increase with the magnetic susceptibility of the slag. Measurements in the furnace settler indicated the presence of a magnetite-rich layer between bullion and slag, arising from high magnetite levels in the slag. This layer was believed to inhibit the settling of entrained lead from the slag. Tracer tests showed that the average slag residence time in the settler was less than 2 minutes. Improvements in coke quality and sizing, which led to a reduction in the slag magnetite content, and the installation of a larger settler and a continuous Roy tapper, have all contributed to a significant decrease in the slag lead content.

Jan 1, 1977

By W. G. Stevenson

With the author's background of extensive experience, this paper delineates the role of the prospector in modern-day exploration programs. The stages in the development of a prospect to a producing mineral district are outlined, and examples are given from the Ross River area of the Yukon Territory and the Peachland and Highland Valley areas of British Columbia.

Jan 1, 1970

By R. A. Wyman, F. E. Hanes

THE demand for high-quality aggregate is increasing in all phases of the construction industry and in all organizations associated with road building in Canada. The production of aggregate in Canada has increased almost continuously since the end of the war and has quadrupled since 1948. Increases during the past fifteen years can be accounted for by the expansion in all types of construction, particularly that of roads and highways. Total construction in 1959, based on preliminary estimates, has been valued at $7 billion, and an increase fore-cast for 1960 indicates optimism on the •construction horizon (1). Cement produced in Canada in 1959 amounted to 6.3 million tons. This is more than 2.5 times the 1948 production. Increased cement production indicates an increased use of concrete, and thus an increased need for aggregate. Natural sand and gravel deposits are gradually being depleted.

Jan 1, 1962

By J. F. Davis

Pegmatite dykes containing lithium minerals and beryl occur dose to the borders of intrusive masses of granitic rock in the Winnipeg River area of Manitoba. Both vertical and flat-lying dykes are present. Most of the pegmatites consist of zones, containing characteristic mineral assemblages, arranged more or Jess parallel to the borders of the dykes. Five important lithium minerals are present; each occurs in a separate zone, but all the lithium-bearing zones are situated toward the centres of the pegmatites. Spodumene is the most abundant and widespread of the lithium minerals and occurs as small crystals intimately intergrown with quartz. Beryl is not an important constituent of the lithium pegmatites, but when .present, occurs outside the lithium zones, toward the margins of the -dykes. Beryl is most common in dykes containing few or no lithium minerals. The mineral assemblage in the beryl zone of the lithium dykes is the same as that of the beryl dykes. The attitude and internal structure, particularly zoning, of the pegmatite dykes, and the texture and assemblages of the constituent minerals, have an important bearing on exploration, development, and mining of these pegmatites, and on the extraction of various mineral products from them.

Jan 1, 1958

By Y. Héroux, A. Chagnon, M. M. Savard

"Résumé- Le gîte de Pb-Zn de Gays River s'accompagne d'anomalies des propriétés de la matière organique (MO) et des assemblages de minéraux d'argile (AMA). L'association entre la minéralisation, la distribution de la réflectance de la MO et des AMA suggère que ces traceurs peuvent servir à l'exploration des sulfures de métaux de base dans cette région.A l'emplacement du gîte, la réflectance varie considérablement (0,80% à 1,88%), pouvant même afficher une baisse avec l'enfouissement, ce qui est interprété comme une altération chimique de la MO. Les valeurs les plus élevées s'accompagnent localement de quelques textures en mosaïque et délimitent une anomalie thermique au centre sud de la région. Parmi les minéraux des argiles identifiés, l'illite et la chlorite sont terrigènes alors que la smectite, la kaolinite et la corrensite sont authigènes et, à l'instar de l'altération de la MO, résultent des nouveaux équilibres chimiques créés suite à la précipitation des sulfures.Abstract- The Gays River Pb-Zn ore deposit is associated with anomalies defined from the characters of the organic matter (OM) and from the clay minerals assemblages. The relationships be­ tween these anomalies and the mineralization at the mine suggest that these parameters can be used as new guides for the exploration for base-metal sulfides in this area.The vitrinite reflectance (RJ shows a wide range of values (0.8% to 1.88%) and exhibits an anomalous suppressive effect with depth of burial at the mine site, suggesting a chemical alteration of the OM. The highest R, values are associated with mosaic textures and outline a thermal anomaly at the south-center of the studied area. Among the identified clay minerals, illite and chlorite are terrigenous, whereas smectite, kaolinite and corrensite are authigenous and, like the alteration of the OM, are due to the new chemical equilibria resulting from the precipitation of the sulfides."

Jan 1, 1994

By K. Musgrave

"The ISO 9000 Quality Management System Standards have become internationally accepted as the way to manage quality assurance. The author has developed a Maintenance Management System Standard using ISO 9001as a model and is working with a major basemetal mining company to implement this. This paper describes the structure of the standard and the steps required for its implementation.Using a management standard ensures that a system is maintained, reviewed by internal audit, and when instances of failing to follow the procedures (nonconformances) occur, that corrective action is taken. It also ensures that regular reviews are made and that the sys-tem is continuously improved.The Standard is designed so that if an organization decides to register to an ISO 9000standard, the Maintenance Management System will be in a format that is compatible and can be incorporated with little effort into the Quality System.IntroductionIn reviewing maintenance operations at many mining companies, and often seeing those same organizations some years later, two recurring issues have been noticed..The first issue is how dependent effective maintenance is upon individual supervisors and crews. In one situation, a mine that had an excellent maintenance system in the 1980s. Now, with new supervisors and crews, it is starting to develop a system that will bring it back to where it once was. No written procedures remain from the earlier excellent system.The second issue is that most operations feel that maintenance is the sole responsibility of the maintenance supervisors and crews. Nothing could be further from the truth. Maintenance, like safety, is everyone’s responsibility. If the operator does not report problems and perform daily checks, and if the production supervisor runs equipment until it fails, then nothing the maintenance crew does will prevent emergency breakdowns and lost production. More importantly, equipment will be operated in unsafe conditions, putting employees at risk and, with today’s regulations, leaving supervisors open to prosecution.The Maintenance Management System outlined in this paper is designed to establish the present best practices as standard procedures, to provide a continual review so that these practices are improved in the future, and to identify instances where the system fails so that corrective action is taken. The mine referred to above is using this approach to make sure that, this time, the system it implements will survive."

Jan 1, 1997

By G. H. Robbins

"Originally presented at TORONTO 94, CIM-AGM, this paper has been updated to reflect the present status of business development for theSO2/AIR process. The paper reviews the back-ground leading to the invention, discusses the process chemistry and historically tracks the commercial development. Engineering and cost considerations are presented.IntroductionThe year 1994 was particularly significant in terms of the technical and business development of the INCO SO2/AIR cyanide destruction process. The year marked a decade of service to the world mining community since INCO acquired the Canadian patent in 1984. In that time period, the technology had become widely recognized as the state-of-the-art process in the field of cyanide detoxification and today we enjoy the distinction of having licensed the process at over 50 project sites worldwide. The application for the process has mostly been in the mining industry in precious metal recovery plants where it offers treatment for a wide range of waste streams such as: CIP/CIL slurries, Merrill-Crowe barren bleed solutions and/or re-pulped filter cakes, tailings pond water recycle or discharge, make-up water to flotation circuits and feed to underground backfill plants. The process also applies to the treatment of high cyanide rinsewaters from metal plating shops. More recently the process is being applied to the rinsing and abandonment of heap leach pads where it has proven to be a very cost-effective application of the INCO process. The distinct advantages that have led to the success of the process are the ability to work on slurries as well as solutions and the significantly low cost of sulphur dioxide products. The process is safe and easy to manage and uses all forms of SO2(liquid, gas or salts) which gives the process tremendous versatility with respect to geographic application. Having more than ten years of service"

Jan 1, 1996

By V. L. Gravitis

Radioisotope X -ray techniques of analysis for nickel have been tested in laboratory and plant trials. In the laboratory tests. a comparison was made of radioisotope and conventional analyses for nickel in solid s samples taken from streams of a nickel concentrator. Coefficients of variation of 1.7% for feed and concentrate samples , and equal to 10% for final tailing samples, were obtained. Continuous determination of nickel in final tailing slurries was demonstrated in a trial lasting 20 days at a nickel concentrator (Western Mining Corporation), nickel being determined with a standard error of 0.036% Ni in the slurry solids within the range of 0.24 to 0.68% Ni. This error, obtained by comparison of on-stream probe analyses with assays of samples taken from the stream, includes errors in sampling and assay by conventional techniques.

Jan 1, 1977

By DONALD E. BARNETT

Since the days of early settlement ew Brunswick has produced a variety of industrial minerals but it is perhaps only the recent discoveries of significant reserves of potash that have elevated the meaning of industrial minerals in their contribution to the provincial economy. With potash production commencing in July 1983, the role of industrial minerals will increase significantly to the value of mineral production in the province.

Jan 1, 1984

By L. L. Sirois

Because segments of the Canadian mineral-based economy are dependent totally or in part on foreign sources of certain minerals, their well-being may well be affected by inability to obtain these minerals. Where such dependency exists, it is therefore important that contingency plans be available to counteract possible price increases or lack of supplies by means of technology, developed well in advance of any pending crisis . Canada is vulnerable to possible future real or artificial shortages of certain foreign-produced mineral commodities, and science and technology can provide information for the development of policies for counteracting efforts by foreign exporters to control prices or limit supplies.

Jan 1, 1977