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By D. Song

In this paper, the differential equations governing the mass transport and the electrochemical reaction in a cathode catalyst layer of polymer electrolyte membrane fuel cells are solved based on the polynomial series expansion method. Explicit expressions for the polarization curve as well as for the distributions of oxygen, current density and overpotential are obtained when a quadratic, cubic or quartic polynomial is employed to approximate the oxygen concentration distribution. These kinds of explicit solutions are desirable for MEA design and diagnosis purposes. The comparison between the conventional numerical approach and the explicit solution approach proposed here shows that satisfactory accuracy can be reached by the first four terms of the polynomial series. The effect of the catalyst layer thickness on the accuracy of the obtained explicit polynomial solutions is also discussed.

Jan 1, 2005

Adsorption of guar gum was investigated on model minerals typically found in water-insoluble slimes of potash ores. The ionic strength of the adsorption mixtures was varied from distilled water to saturated NaC1 and KC1. The tests were also performed using a saturated brine. The adsorption density of guar gum on illite, dolomite, and kaolinite was found to be not only a function of total ionic strength but also of the type of electrolyte present in solution. Generally, the adsorption of the polymer on the clay minerals was higher in KC1 solutions than in NaCI, but the differences gradually disappeared when the electrolyte concentration approached saturation. The results were analyzed in terms of chaotropic (K ) or kosmotropic (Na') properties of background counter-ions and their different behaviors at the hydrated mineral-water interface. Guar gum adsorption on dolomite was related to the presence of calcium and magnesium sites on the mineral surface, and to the cis-configuration of OH groups of mannose units. Based on viscosity measurements, it was suggested that guar gum macromolecules form entanglements in NaCI solutions (and distilled water), but individual molecules exist in KC1 solutions thus creating different modes of adsorption of guar gum from concentrated NaCl and KCl solutions.

Jan 1, 2006

By T. P. Kostek

"Historically, gear pumps and motors have been popular in the mining industry because of their competitive cost, simple yet rugged construction, ease of rebuild, and relative long life and insensitivity to contamination. However, with the ever increasing ""popularity"" of fire-resistant hydraulic fluids, both users and manufacturers of gear equipment must make special considerations to enable the equipment to continue giving satisfactory performance even with the water-containing fluids.The paper discusses 60-40 invert emulsions and waterglycolsIntroductionMuch information has been published on the specific characteristics of the various types of fire-resistant hydraulic fluids. Fluid manufacturers' literature and other publications have dealt with such specifics as fire resistivity, seal compatibility and wear rate characteristics. Gear pumps and motors have been, and will continue to be, applied successfully in hydraulic systems employing both the ""invert"" emulsions (60-40) and water-glycols as the hydraulic fluid.Because most external spur gear equipment has been designed to function with petroleum oil as the fluid medium, certain guidelines must be followed to ensure satisfactory service life. FluidsThere are a number of different types of fluids which fall in the category of"" fire-resistant"" , the most common'being phosphate esters, water-in-oil emulsions, oil-in-water emulsions and water-glycols. The two in most prevalent use today as hydraulic fluids are the water-in-oil emulsions and the water glycols"

Jan 1, 1980

By M. M. Williams

ALBERTA has been generously endowed with oil, natural gas, coal and water power, thus giving power producers a wide choice in the type of plant and fuel which can be used. Therefore, with such a variety of energy sources to choose from, why was coal selected as the primary fuel at Calgary Power's Wabamun steam plant? This part of the paper will cover the circumstances that led the Company to decide in favour of coal. The second part, to be presented by C. F. Doerr, will describe how the Wabamun coal mine has been developed to supply the large fuel requirements of the power plant. Before considering the Wabamun plant, we require a general under-standing of? the Company's electric system and load. Power is fed into a 5,100-mile high-voltage transmission grid from eleven hydroelectric plants and from the Wabamun steam electric plant. These plants have a combined generating capacity of 820,000 horse-power. Of this total, the hydro

Jan 1, 1963

By K. A. Natarajan, M. N. Chandraprabha

Selective separation of minerals from complex sulphide ores is a challenging task and it is often difficult to get commercially acceptable individual concentrates by conventional selective flotation using inorganic collector reagents. Microbially-induced mineral beneficiation has proved to be more effective, economically viable and an environmentally benign process for the effective separation of various minerals. Applications of microbially-induced mineral beneficiation are demonstrated in this paper with respect to beneficiation of complex multimetal sulfides. The role of adapted microorganisms and bioreagents in the beneficiation of complex sulphide minerals are also illustrated.

Jan 1, 2009

By X. Shi

Magnesium, the lightest structural metal, has not yet been considered as a serious contestant for automotive use due to its weaknesses in corrosion. Electroless nickel-boron alloys are well known for their corrosion resistance and hardness. An electroless nickel-boron layer was successfully deposited first on the chemical conversion pre-treated AZ31 alloy and also on the Ni-P coating which was deposited on the conversion coating. The electroless bath contained nickel sulphate and dimethylamine borane (DMAB) as main salts and the samples were activated by a 5 g/L AgNO3 solution before the electroless plating process. The presence of the conversion coating between the nickel coating and the AZ31 substrate acted as a barrier and prevented corrosion of the alloy. The morphology of the nickel-boron layer was studied using SEM. The crystal structure and the composition were examined by EDS and the hardness was measured. The corrosion behaviour of the nickel-boron layer deposited on the conversion coating and on the Ni-P coating was studied using potentiodynamic polarization in a 0.5M NaC1 solution. A saturated standard calomel electrode was used as a reference electrode. The results show that the nickel-boron coatings had a significantly better corrosion resistance than the AZ31.

Jan 1, 2006

By Guangdong Institute of Resources Comprehensive Utilization, Y. H. Tang, H. X. Hu, T. S. Dong, Z. H. Zhang

"A world class rare metals ore deposit in Africa belongs to a massive granite type poly-metallic pyrochlore-niobium resource. Successful project development in realizing the resource is vital to Africa’s economy and pyrochlore processing technology.The ore properties are quite complex due to the presence of varieties of valuable minerals, fine dissemination and intimate association of minerals and the relative abundance of easy-floatable minerals. The separation of pyrochlore from zircon, calcite and mica is generally considered difficult. Whilst studies have previously been conducted by several independent institutions overseas, no satisfactory process has yet been developed to date for the ore deposit—possibly due to the process designed being too complex; high cost of regents; lower performance.Based on process mineralogy study and extensive testwork, the authors have in recent years developed a new technology—“De-slime—Iron-rejection—Zircon (with calcite) and Calcite reverse flotation—Pyrochlore flotation”. The flow-sheet is characterized by ?1prior removal of slimes and iron minerals; ?2 Zircon (with calcite) and Calcite reverse flotation; and ?3Pyrochlore flotation applying new type of chelating collector GYX3 developed by GZRINM in conjunction with selected regulators and depressants.The process involved in the new technology is simple to implement and facilitates stable operation; the flotation reagent regime is easily adaptable; the cost of main reagent is lower largely because it is easy to manufacture and is environmental friendly. Laboratory test results demonstrated that, for raw ore assaying 0.35% Nb2O5, 0.03% Ta2O5 and 0.45% ZrO2, pyrochlore concentrate grade of >35% Nb2O5 could be obtained with >74% recovery. Meanwhile, the Ta2O5 content in pyrochlore concentrate could be recycled, and ZrO2 recovery >50% could be achieved in zircon concentrate assaying ZrO2>63%—significantly improving the technical-economic indicator. These results were verified in pilot trials of 1.44t/d throughput. The paper presents the new technology in whole, summarizes the key factors affecting its performance and discusses in simple terms the mechanism of separation."

Jan 1, 2016

By Guangdong Institute of Resources Comprehensive Utilization, Y. H. Tang, H. X. Hu, T. S. Dong, Z. H. Zhang

"A world class rare metals ore deposit in Africa belongs to a massive granite type poly-metallic pyrochlore-niobium resource. Successful project development in realizing the resource is vital to Africa’s economy and pyrochlore processing technology.The ore properties are quite complex due to the presence of varieties of valuable minerals, fine dissemination and intimate association of minerals and the relative abundance of easy-floatable minerals. The separation of pyrochlore from zircon, calcite and mica is generally considered difficult. Whilst studies have previously been conducted by several independent institutions overseas, no satisfactory process has yet been developed to date for the ore deposit—possibly due to the process designed being too complex; high cost of regents; lower performance.Based on process mineralogy study and extensive testwork, the authors have in recent years developed a new technology—“De-slime—Iron-rejection—Zircon (with calcite) and Calcite reverse flotation—Pyrochlore flotation”. The flow-sheet is characterized by ?1prior removal of slimes and iron minerals; ?2 Zircon (with calcite) and Calcite reverse flotation; and ?3Pyrochlore flotation applying new type of chelating collector GYX3 developed by GZRINM in conjunction with selected regulators and depressants.The process involved in the new technology is simple to implement and facilitates stable operation; the flotation reagent regime is easily adaptable; the cost of main reagent is lower largely because it is easy to manufacture and is environmental friendly. Laboratory test results demonstrated that, for raw ore assaying 0.35% Nb2O5, 0.03% Ta2O5 and 0.45% ZrO2, pyrochlore concentrate grade of >35% Nb2O5 could be obtained with >74% recovery. Meanwhile, the Ta2O5 content in pyrochlore concentrate could be recycled, and ZrO2 recovery >50% could be achieved in zircon concentrate assaying ZrO2>63%—significantly improving the technical-economic indicator. These results were verified in pilot trials of 1.44t/d throughput. The paper presents the new technology in whole, summarizes the key factors affecting its performance and discusses in simple terms the mechanism of separation."

Jan 1, 2016

By J. W. Gregg, P. M. Dranchuk, D. L. Flock

"From preliminary investigations it has been observed that although evaporation losses may be estimated by comparing single values of certain physical properties of crude oils and their evaporation residues, such techniques possess little accuracy unless both the evaporation process and the variation of the property as a function of the process are completely known. The accuracy of estimation may be increased somewhat through the comparison of property mid-per-cent curves. Further increases in accuracy are possible if bottoms yield •curves rather than mid-percent curves are used. The use of both the mid-percent and bottoms yield curves however involves a prohibitive amount of effort in most cases. Examinations of distillation bottoms from Hempel type distillations carried to end points just short of the cracking point have indicated that these bottoms are not appreciably affected by the evaporation process. It was further observed that bottoms of identical API gravity, obtained from a crude oil and its evaporation residues behave as if they were pure components which were unaffected by evaporation. Based on these observations Hempel distillation bottoms of equal API gravity were obtained for a crude oil and its various evaporation residues from API gravity bottoms yield curves. The volume percent of these bottoms in the crude oil and its residues were used to calculate the evaporation losses suffered by the crude in order to yield the various residues. The results indicate that, although further refinements in technique are required, it is possible to calculate evaporation losses with an accept-able degree of accuracy through the use of this method."

Jan 1, 1960

"This paper deals with the reconciliation of open stope performance at Olympic Dam, South Australia, with a focus on stope stability, recovery, and operational aspects of stope reconciliation in relation to the expected or planned stope design. The observed stope performance is inconsistent with the equivalent linear overbreak sloughing criteria for assessing the performance of large open stopes. The aim is to investigate new stope performance criteria using quantitative (overbreak, underbreak, maximum depth of wall failure) and qualitative (stope productivity, observed fragmentation) information that correlates with the observed stope behaviour, providing a process for improving future stope designs.RÉSUMÉ Le présent article traite de la réconciliation de la performance des chambres ouvertes à Olympic Dam, Australie du Sud, en ciblant la stabilité des chambres, la récupération et les aspects opérationnels de la réconciliation des chambres par rapport à la conception attendue ou planifiée des chambres. La performance observée des chambres ne concorde pas avec les critères d’épaisseur équivalente du bris hors profil pour évaluer la performance de grandes chambres ouvertes. L’objectif est d’étudier de nouveaux critères de performance des chambres au moyen de données quantitatives (rupture hors profil, rupture à l’intérieur du profil planifié, profondeur maximale d’effondrement du mur) et qualitatives (productivité de la chambre, fragmentation observée) qui concordent avec le comportement observé des chambres, fournissant ainsi un processus pour améliorer les futures conceptions des chambres."

Jan 1, 2015

By Y. Kusuda

Since 1981, the Annaka refinery has recovered zinc from zinc leach residues by the Waelz Process. The important considerations of this process are the prevention of the growth of coating accretions in the Waelz kiln and the improvement of the zinc volatilization rate. In this paper, simulation predictions and the results of the industrial operation regarding the prevention of coating accretions in the Waelz kiln and the improvement of the zinc volatilization rate at the Annaka refinery are reported and compared.

Jan 1, 2006

By C. B. Webber, L. S. Diaz

"The paper presents the approach taken by Craigmont Mines to grinding circuit control. A detailed description is given of a fully automatic control system which bases its control actions on the continuous measurement of particle size in the cyclone overflow stream. The control system holds a specified particle size in the cyclone overflow, and grinds rod mi 11 ore feed at increased rates. The principles of operation of the system used for continuous measurement of particle size are described, end the improvements in mill throughput and copper recovery over several months of continuous operation are presented.INTRODUCTION Craigmont Mines Limited is located in the south-western interior region of the province of British Columbia, approximately 230 road miles north-east of Vancouver, and ten miles west of the town of Merritt. A moderate climate, good roads and service facilities provided by the Canadian Pacific Railway, Inland Natural Gas Company, and the B.C. Hydro and Power Authority, have provided a very favorable mine and plant site.The preliminary metallurgical design of the Craigmont mill was based on the test results of samples obtained from the original 2500' level drift during 1959. Pilot plant runs and other research testing for design pur¬poses were conducted at the Canadian Exploration Ltd. Laboratory, at Salmo, B.C. The design flowsheet was altered in progressive stages from 2,000 to 3,000, and finally 4,000 tons per day as the ore reserves became better defined. Construction work on the 2,400' level mill site commenced in late 1960. The official opening of Craigntnt Mines Limited took place on September 15, 1961, a little over two years from the time of the metallurgical assessment of the original ore samples.Mill throughput to date has varied widely both on a daily and a monthly basis, due to the varying hardness of the mine ores. The grindability af the ore appears to be related to the oxide iron content, which varies from lows of 9% to highs of 20%. Daily tonnage has ranged from 5,000 tons per day with 10% iron in the feed, to 6,000 tons per day with 20% iron feeds."

Jan 1, 1973

By S. Kelebek

Batch flotation tests were carried out using samples from stockpiles that were up to 1.5 months old as well as fresh samples oxidized in the lab for up to six months. Head grades and size distributions of samples were equalized whenever possible. The samples from stockpiles and oxidation experiments produced inferior nickel grade-recovery compared to the fresh sample. The poorer grade-recovery performance was attributable to two factors. First, a significant dilution effect was observed due to complete flotation of pyrrhotite. Secondly, the same stockpiling conditions caused nickel losses that were attributable to non-floatability of some pentlandite. Application of a high pH of 10 compared to the regular pH of 9.2 slowed down pyrrhotite flotation kinetics, but was not able to prevent complete flotation after 8 minutes. The samples oxidized in the lab did not match full characteristics of stockpile samples. They provided somewhat better selectivity for pentlandite. Some correlations were observed on a qualitative basis between surface characteristics such as elemental sulphur formation, activation and flotation behaviour. Oxidation conditions, which induce floatability on pyrrhotite while causing incremental loss in pentlandite floatability appear to be the root cause of difficulties in the processing of oxidized forms of these ores.

Jan 1, 2006

By T. Alan O'Hara

"The decision to invest capital in developing a mine and constructing a mineral processing plant and services is usually made after a feasibility study shows 'that the estimated future cash flow from mine operations will yield an adequate return on the estimated capital expenditures.The actual return on investment may differ substantially from that estimated in the feasibility study, because of the probabilities of errors in estimating capital costs, ore reserves, operating costs, mineral revenue and operating productivity. This paper outlines the R.S.S. (root sum of squares) risk analysis procedure of computing the overall probability of the actual project D.C.F. (rate of discounted cash flow), differing from that estimated in the feasibility study.Variation in Project D.C.F.It is assumed that a feasibility study of the project has been completed which has defined the estimated values for all the project parameters, such as ore reserve tons and grade, capital cost, concentrate recovery, metal revenue, daily milling capacity and operating costs.The financial analysis of the mining project will have determined that the cumulative cash flow will yield an expected D.C.F. on the capital cost if all project parameters attain the estimated values. If, however, the actual value of any parameter varies from that estimated, the actual project D.C.F. will vary from the estimated D.C.F. Risk analysis methods attempt to determine the overall effect of probable variations in the estimated values of all project parameters on the D.C.F. of the mining project. This overall effect is expressed as a probability profile, which shows the likelihood of actual D.C.F. values greater or less than that estimated.Thus, a completed risk analysis of a mine project, with an expected D.C.F. of 15.51%, would display the characteristics shown in the preceding diagram."

Jan 1, 1982

By M. B. McClenaghan

"Abstract- The Ontario Geological Survey completed a regional till sampling project between 1984 and 1988 in the Black River Matheson (BRiM) area of northeastern Ontario. The project was designed to aid mineral exploration in the area by documenting the Quatemary stratigraphy and by providing a database of till geochemistry. This paper summarizes the results from the sonic overburden drilling component of the BRiM project carried out in areas of thick drift (> 5 m). Results from till sampling in areas of thinner drift (<5 m) have been presented in a separate paper. Approximately 1100 till samples were collected from 225 sonic drill holes. For each sample, the non-magnetic heavy mineral (> 3.3 S.G.) and fine (-250 mesh) till fractions were analyzed geochemically and visible gold grains were recovered by panning.Gold and other multielement geochemical data were plotted using proportional symbols to high­ light anomalous areas and to demonstrate how to evaluate and interpret a very large geochemical dataset. Thresholds for identifying anomalous concentrations of Au in till samples, defined using the 95th percentile, are 1500 ppb and 12 ppb for the heavy mineral and fine fractions, respectively. The heavy mineral fraction of older tills and to a lesser extent, Matheson Till, display a number of significant gold anomalies in the study area, which in a few cases, are associated with base metal anomalies. The vertical position of gold anomalies in Matheson and older tills varies from directly on bedrock to several meters above the bedrock surface and can provide information of relative ice transport distances."

Jan 1, 1994

By Donald Roberts

"Parameters f or design and development of an emergency hoist system (Fig. I) were submitted to Timberland Equipment Limited of Woodstock, Ontario by the Potash Corporation of Saskatchewan Mining Limited.The unit is the first of its kind in Canada. Not only does it comply with the province of Saskatchewan&apos;s mining regulations, but has the added advantage of being completely mobile and self-contained.As well as being useful in the mining industry, the mobile hoist unit could be used in other emergency situations such as rescuing people trapped in wells.JustificationRevisions to the Mines Regulations under Section 13 of the Occupational Health and Safety Act, 1977, of the Province of Saskatchewan stipulate as follows:"" Section 410 .04(4) The Mine Employer shall make adequate provision at every mine where any worker is hoisted in a shaft not equipped with a manway to enable an y such worker trapped in a conveyance in the shaft to be rescued . "" It was not possible to equip the shafts at PCS Mining&apos; s Divisions with "" manways"" and therefore an alternative was required.BackgroundThe Potash Corporation of Saskatchewan Mining Limited, a subsidiary of the Potash Corporation of Saskatchewan, operates four potash mines. Of these, three, Cory, Rocanville and Lanigan Divisions are wholly owned while the fourth, Allan Division, is 40% owned by Kidd Creek Mines Ltd., but managed by PCS Mining. The four underground operations all have a service and production shaft.From 1979 to 1981 the PCS Mining Division, along with Central Canada Potash, were developing an idea to use the existing ground-mounted timberland hoist at Lanigan as an emergency hoist. This hoist was used in the past for rope-up work at both Rocanville and Lanigan and other potash mine s. The Department of Labour at this time had concerns about the time it would take to load, t ran sport and re-install the hoist on a foundation when needed for an emergency. Weight and size made this particular unit very cumbersome for transporting.In addition, the speed at which this hoist operates is too slow for rescue work. When the Department of Labour expressed concern that this unit would be unsuitable for these rea sons, a search for a suitable unit was initiated.The project responsibility for procuring an emergency hoist for the Potash Corporation of Saskatchewan Mining Limited was assigned to the author, a shaft/ hoist specialist a t PCS Mining."

Jan 1, 1986

By X. Xu, J. K. -W. Wong, J. -Y. Delenne, K. Soga

Hydraulic fracturing (HF) is a mulit-scale and multi-physics process which makes numerical modelling challenging. Conventional numerical models focus on multi-physics nature of HF but the multiscale nature is compromised by idealization of reservoir to be continuous, homogeneous and isotropic. However, natural fractures take a significant role in the success of HF for exploration of unconventional resources like Shale gas. Advancement in microseismic monitoring provides useful data for simulation in a much greater details. There is an urgent need to develop a suitable numerical tool for multi-scale threedimensional simulation to better understand the roles of discontinuities and heterogeneity in reservoir and its interaction with HF, especially to address the environmental concerns such as induced seismicity. In this paper, a simple discontinuum numerical method – Lattice Element Method (LEM) is proposed to model HF in a large scale three-dimensional model. A reservoir is modelled as a lattice network composed of 1D Hookean’s spring. Fracturing is modelled simply by removing lattices that meet a specified threshold as determined by the critical energy release rate of the rock. By introducing disorder in the model, mesh dependency in modelling fracture growth is minimized. Fluid flow is simplified as flow in pipe network and the permeability of pipe is related to fracture aperture by cubic flow law. Therefore, fracture flow and rock deformation are fully coupled. In this paper, four simulations of the same configuration except with different degrees of reservoir heterogeneity are presented. Fractures formed are diffusive and two groups of fracture are identified – connected fractures and isolated fracture without clear spatial correlation. The former forms a ‘fracture cloud’ and contributes to fluid flow and modeled by pipe network. The flow of fluid is highly tortuous and pipe network is sparely connected. The degree of reservoir heterogeneity controls the growth of ‘fracture cloud’ and pipe network. Microseismic monitoring often shows diffusive fracturing during HF on site and hence the outcome of the proposed model can be compared to such monitoring results.

Jan 1, 2015

By E. E. Mason

THE Myrtle group of mining claims is situated on Barkerville mountain in the Cariboo mining district of British Columbia, west of the old mining town of Barkerville. An 1,800-foot adit, known as the Shamrock tunnel, was driven in 1935-36 from the Barkerville road and in the general direction of the Myrtle group. It was proposed to enlarge this adit to more convenient section, extend it 2,500 feet int0 Myrtle ground, and from there drive a main entry 3,000 feet along the length of the group. Several laterals were also to be driven off this main entry as part of the tunnel schedule. It was thus originally proposed to drive 5,500 feet of new adit and 1,800 feet of laterals, a total of 7,300 feet of new work. Work was commenced with a bulldozer on April 21st, 1941, cutting a bench on the hillside for a plant site. The power plant was ready for operation on August 8th. Slashing and re-timbering of the old adit rook longer than was expected. It was found that 57 per cent of the length required timbering, chiefly by fore-poling, and there was also trouble in several sections with swelling ground. First round in the new face was taken on September 17th, when a 2-shift daily schedule was commenced. Due to delays in delivery of electrical equipment, it was not possible to add the third shift until November 14th. From then on, a 3-shift daily schedule was maintained with the exception of holidays and fortnightly change Sundays until August 1st, 1942, when shortage of labour caused the dropping of a shift. All work was suspended on August 14th. The ground through which the tunnel passed was such that the driving was often interrupted by the need of protective timber at the face. Further, crews were continuously employed timbering behind the face, and in maintenance of timbered sections in swelling ground. Roughly 980 feet of the new workings are now timbered, about 21 per cent of the total.

Jan 1, 1942

By R. A. Rabnett, G. Paget, Patrick Walsh

"Tumbler Ridge, Canada&apos;s newest resource community, has been developed differently than have been other resource communities.Since its conceptualization, emphasis has been placed on the establishment of a traditional municipal government at early a stage as possible.Planning f or the community goes back to 1977. By then, extensive study by provincial agencies had shown a new resource town would be required to exploit north east coal. The Ministry of Municipal Affairs, in conjunction with a consultant named R.A. Rabnett began the extensive Tumbler Ridge conceptual plan.The results of the conceptual plan are evident in the organizational and planning goals of Tumbler Ridge. In every aspect from the election of officials to some financial matters, the town functions as a normal municipality. With the resource companies of the North East Coal Development within its municipal boundaries. Tumbler Ridge has been able to debenture its capital projects against its municipal tax base.The town&apos;s ability to function as a normal municipality is enhanced by its control over Crown land it has purchased from the province. This gives it further control over the development of the community and helps in establishing agreements with the resource companies and the provincial government to ensure that housing and service needs are met. While resource company representatives sit on certain municipal committees, their roles are advisory in nature.The community continues to move toward full municipal status and will have a fully elected Council by 1986.BackgroundPlanning for the development of northeast British Columbia coal resources began in 1976 under the aegis of the provincial Cabinet Committee on Coal Development. A series of subcommittees were established including a Townsite/Community Development subcommittee. The Ministry of Municipal Affairs chaired this subcommittee and continued as the lead agency for the provincial settlement planning effort over the period 1976 to 1981."

Jan 1, 1983

By Robert T. McKnight

"Traditional techniques for valuing resource projects companies have been primarily based on discounted cashflow methods (DCF) or by comparison to similar projects with an apparent market capitalization. Many resource projects are really forms of options to invest rather than a future cashflow stream. Employing the DCF method to value a resource project which is really an option to invest, can dramatically underestimate the real value of the project. The analytical tools required to evaluate options, while more complicated than the usual spreadsheets used for DCF, are becoming more easily available and usable by managers. This paper will discuss the background of options valuation and some of the tools which will make it easier for managers to estimate the value of projects and companies which have significant real option values.ResumeBob McKnight is a graduate of the University of British Columbia in Geological Engineering, supplemented by an MBA from Simon Fraser University. Following several years in the oil patch with Cities Service and Brascan, Bob returned to Vancouver in 1979 to work for Wright Engineers. He subsequently went on to work for Cassiar Mining, Getty Resources and Endeavour Financial before joining Pincock Allen & Holt Ltd. in 1998. His experience ranges from exploration to feasibility studies, financial evaluations of mining and oil & gas projects, due diligence, project finance, valuations and mergers and acquisitions. He has extensive international mining experience pertaining to such countries as Chile, Mexico, Uruguay, Thailand, Indonesia, Angola, Papua New Guinea, Kazakhstan.What are Options?Options have been around for centuries. They were familiar to Roman and Phoenician traders who were shipping cargoes from Mediterranean seaports. In the financial world, options are types of contracts that generally include the right, but not the obligation, to buy or sell a share, currency or commodity. The underlying commodity price or share price changes are assumed to be lognormally distributed. In this context, options are of two general types, ""call"" options and ""put"" options. Call options have the characteristic of having the right to buy a tradable commodity or currency at a predetermined price for a specified period of time. For the owner of call options, they become more valuable as the price of the underlying commodity increases. For the seller of call options, these options become an increasing liability as commodity prices rise, since there is the obligation to sell the commodity at a predetermined (perhaps lower-than-market) price. This characteristic of call options recently became high profile with the sharp rise in gold prices last year. The value of gold call options sold by certain producers increased their associated liabilities to the point where margin calls were made."

Jan 1, 2003