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By G. D. Ruttan

"LYNN LAKE, in northern Manitoba, has become Canada's second nickel-producing area. The discovery by Sherritt Gordon Mines of nickel ore in an entirely new district was the result of systematic prospecting of a belt of volcanics and sediments situated 100 to 150 miles north of the Company's former copper-zinc mine at Sherridon, Manitoba.Prospecting in this area was begun in 1937 and continued each year until 1941, when Austin McVeigh, a company prospector, found a patch of sulphides on a gabbro outcrop near a small lake named Lynn Lake. Samples from this sulphide indicated nickel and copper in significant amount. In 1943, magnetometer work disclosed a number of weak anomalies in low ground near the discovery. In 1945, staking was followed by geophysical surveys and diamond drilling, which continued through 1947. During this period the A, B, E, EL, and Corebodies were located and partly outlined. The discovery of the high-grade ""EL"" orebody in January 1947 was the turning point in the estabishment of the mine. Subsequent development, including additional exploration on surface and under-ground, evolution of a new metallurgical process, financing, erection of a mining and milling plant, hydro-electric power development, building of a rail line from Sherridon (by Canadian National Railways) and a refinery at Fort Saskatchewan, Alberta, culminated in August 1954, when the first shipment of nickel left the refinery. This paper, presented at the 1955 Annual General Meeting of the C.l.M. in Toronto, was one of a symposium covering the whole operation."

Jan 1, 1949

By B M. Moudgil

Atomic force microscopy (AFM) has become an important tool for understanding the nano- to molecular scale mechanisms predominant in multiphase systems. In flotation research, the use of AFM holds promise for unlocking and establishing fundamental mechanisms, ultimately leading to significant advances in process performance. From measuring and characterising surface forces, the structure of molecules at interfaces, and nanoscale features on flotation media, AFM is a powerful tool that has only begun to impact flotation research. Highlights of advances made in the utilisation of AFM for flotation research at the University of Florida are given with an emphasis on interpreting the mechanisms behind calcium activation in phosphate flotation and the impact of nanoscale asperities on collector-born surface hydrophobicity.

Jan 1, 2005

By Walter R. Hibbard

THE term lineage was first introduced by Buerger1 to denote dendritic branches, grown from a crystal nucleus during solidification from the liquid, with imperfections in alignment of the order of 10-1 [ ] to 10-4 cm. These imperfections are associated with distortions of the dendrites caused by the subsequent solidification of the inter-dendritic filling and are illustrated in Fig 11. Buerger etched zinc single crystals made by the Bridgman2 method to develop this dendritic pattern and show lineage microscopically. Since maximum crystal growth in face-centered cubic metals occurs along the [100] directions,2 lineage would appear in copper as small deviations of dendritic branches from these directions. Elam4 and others5-8 reported etching effects resulting from coring along the cube face traces of various copper alloy crystals. These traces were used by Samans8 to orient single crystals. Williamson9 noted a "lined structure (in alpha brass single crystals) consisting of an ordered arrangement of etch pits" which were probably traces of {100} planes but somewhat uncertain because they were never straight (i.e., apparently lineage). Greninger10 described the distortion and multiplicity of Laue spots in back reflection X ray photograms of copper single crystals showing lineage. The present investigation includes metallographic, X ray and property studies of lineage in large grain and single crystal specimens of copper. PREPARATION OF SPECIMENS Specimens 10 in. long and ½ in. diam of oxygen-free copper (O.F.H.C.) (99.985 pct) were melted vertically in graphite crucibles under an atmosphere of commercial nitrogen purified through a gas train including sulfuric acid, potassium chloride, magnesium chlorate, hot copper chips and phosphorus pentoxide. After a temperature of 1200°C had been maintained for ½ hr, the furnace was turned off and the specimens cooled at a rate of about 150°C an hour. This method of direct solidification was used by Greninger10 to produce single crystals with marked lineage and in this investigation produced a fair yield of single crystal specimens in

Jan 1, 1947

By L. C. IlsLey

Most State enacting bodies have deemed it necessary to specify a maximum speed at which men may be hoisted or lowered in mine shafts. Since most mine cages are not closed in, as are passenger elevators in office buildings, and since, ordinarily, neither the starting tin g nor stopping of the cage is as general as that of these elevators, such regulations are all the more necessary for the comfort and safety of the men. It is also quite generally recognized that it is dangerous to over-crowd cages. Hence, a number of States have limited the number of men that may be on cage at one time.

Jan 1, 1939

By Richard H. Singleton

Native asphalt was produced in 1980 by six companies in four States. Leading States were Texas and Utah. Output decreased 22% in 1980 to 1.25 million tons while value decreased 2% to $25.0 million. Bituminous limestone was produced by Whites Uvalde Mines and by Uvalde Rock Asphalt Co. in Uvalde County, Tex.; by Southern Stone Co. in Colbert, Ala.; and by Barton County Rock Asphalt Co. in Barton County, Mo. The product was used mainly in street and road repair. Gilsonite was produced by American Gilsonite Co. in Uinta County, Utah, and by Ziegler Chemical and Mineral Corp. in Weber County, Utah. This material was used for purposes other than road repair.

Jan 1, 1981

The Gosowong epithermal quartz-adularia vein, in the Halmahera magmatic arc, is a new discovery in an area of primary tropical rain forest with no history of gold mining or mineralization. The newly recognized mineral district also contains a number of other epithermal vein systems, two centres of porphyry Cu-Au mineralization, and a number of argillic and advanced argillic alteration zones that may be related to underlying mineralization. Gosowong was discovered and tested through the application of basic exploration techniques including drainage sampling, soil sampling, trenching, magnetics, IP, and diamond drilling. Lapse time from the initial reconnaissance discovery of a stream sediment anomaly to the release of inferred resource estimates of approximately 1.0m ounces was just over 3 years.

Jan 1, 1997

"Real time analysis of conveyed bulk materials can be used to improve process performance by reducing variability and upgrading ore quality through selective removal of increments of flow that do not meet appropriate selection criteria. This paper focusses on proven Prompt Gamma Neutron Activation Analysis (PGNAA) and microwave transmission technologies used to representatively measure conveyed ore quality in real time so that meaningful decisions can be made between the mine and mill. This enables the effective removal by bulk diversion of small increments of conveyed flow such as waste, highly deleterious material or sub-economic material from the mill feed. Improved ore quality in plant feed optimises process performance, reduces processing costs and minimises tailings generation. Analysis is unaffected by particle size, dust, layering or segregation, mineralogy and belt speed. Technologies are explained and performance examples given from installations in copper and iron ore. The technology has been used successfully in bulk sorting for over twenty years typically using measured increments of a few minutes. Improvements in technology and calibration performance have resulted in accurate measurements over increments of thirty seconds and below.INTRODUCTION Ore quality variability exists on a number of scales. Block model grades represent a few hundred to many thousands of tonnes. Grade control at the mine occurs on a scale typically down to the size of a haul truck, which may be a few hundred tonnes. Highly variable ore quality is detrimental to process efficiency and effectiveness. Processing waste or low grade ore when higher quality feed is available represents a lost opportunity to generate higher revenues earlier in the operational life. Measuring ore quality accurately over short time increments during conveying enables small increments to be measured and diverted according to their quality. The paper explains the technology and benefits. Neutron irradiation techniques were considered potentially suitable for conveyed bauxite measurement by Beurton et al, 1995. Tran & Evans (2001) concluded there was no equivalent technology to Prompt Gamma Neutron Activation Analysis (PGNAA) in terms of material penetration power. PGNAA was evaluated by Nelson & Riddle (2003) for possible use in the phosphate industry and recommended its use for further characterisation of the mine’s various ore types to improve stockpile allocation and grade control. Cottle (2007) discussed test work for an iron sinter application and Delwig et al (2011) described the successful installation in 2009 and performance of PGNAA for base-to-acid ratio control in sinter feed with the analyser output used to control lime addition. Geoscan (PGNAA) works very well on iron ore and can “improve control over what is happening in the plant” and that comfort can be provided in knowing that the product is on-spec according to Minnett (2010). PGNAA is not yet used in the minerals sector for tariff purposes as has occurred since 2000 with Coalscan (PGNAA) in coal (Minnett, 2010)."

Jan 1, 2017

By Alexey P. Tatarinov

Under modern economic conditions in Russia, gold heap leaching is the most effective way of investing into gold-mining industry. Gold is recoverable from small-size deposits, low-grade ores from oxidation zone, cut-off grades, and overburden rocks using heap leaching. This technology is cost-effective and allows a saleable metal to be obtained within the first year of operation. The investments for heap leaching are lower than those of for a traditional plant technology. Production cost per one gram of Au is 5-7 times lower than that of during a plant flow sheet. A seasonal development of mines can be possible. With reference to this, heap leaching resembles the technology of placer deposits development. One of the major advantages of heap leaching is the form of the product. Gold can be obtained as dissolved in a clarified PLS, which allows the further quick treatment. The amenability of ores to heap leaching depends on their mineralogical composition. Oxidized porous ores with a good access of a lixiviant to valuable particles can be treated without pre-crushing. Clayish minerals are often found in oxidized ores with free gold. In order to build ground for heap, several major methods combined with various pad materials are used. These methods have been used at many plants and are reliable. The development of heap leaching technology for gold ores for the deposits from Yakutia, Zabaikalsky region, Primorye region, Uzbekistan, Tadjikistan, and Kazakhstan began in the 70s. However, it has been commercially used only since 1990. The first heap leach plants were built and commissioned in the USSR in 1991 at Vassilkovsloye deposit (Kazakhstan) and at Maiskoye deposit in Russia in 1994. Pilot plant testing was conducted in 1996 using ores from Kuranakh ore field, deposits Phiskulturnaya-Kholodnaya and Lopukhovskoye from the Aldan region. After the first successful commissioning of heap leaching plant in Russia, this technology has been commercially applied for deposits. Every year 1-2 heap-leaching plants were commissioned. More than 30 heap-leaching plants have been commissioned both in Russia and in the former Soviet Union using technologies developed by IRGIREDMET. Keywords: cyanide leaching, heap leaching, ore, percolation, solutions, lime technology

Sep 1, 2012

By Michael A. Trevits

Mine fires can be especially perilous because toxic products can quickly spread well beyond the fire zone thereby exposing all underground miners to dangerous and deadly conditions. Since November 1998, there have been six major underground coal mine fires or explosions in the United States (Willow Creek (twice), Sanborn Creek, Loveridge No. 22, West Elk and the Jim Walter Resources No. 5 Mine). In each case, the entire mine or specific areas of the mine had to be sealed due to the build-up of dangerous gases and the fear of uncontrolled spread of the fire. Effective placement of mine seals can deprive a mine fire of oxygen and is often followed by water flooding or injection of inert gas into the affected area. When access to the fire zone is impossible because of safety reasons, airtight mine seals can be constructed, in the area of the fire, remotely from the surface through vertical boreholes. Remotely constructed mine seals are commonly made from cementitious material. Since these mine seals are typically erected blindly, it is difficult to determine if mine roof-to-floor and rib-to-rib closure has been obtained. This paper provides a review of the available materials and technology used to remotely construct mine seals through vertical boreholes.

Jan 1, 2002

By Anurag Tripathi, J. K. Saha, S. K. Ajmani, J. B. Singh

"The quality of steel is a major concern in the metallurgical industry. The control of liquid steel temperature can enhance the level of cleanliness in steel. Ladle is one of the major vessels used to transfer liquid steel between different stations. The heat transfer phenomenon taking place in this vessel needs to be monitored for controlling the liquid steel temperature. A CFD model was developed for prediction of liquid steel temperature during complete process cycle of ladles in direct heats. The model was validated with liquid steel temperature measured at on-line purging station and tundish during teeming from one of the actual steel plant. The accuracy of model was 96 %. The results obtained show insignificant effect of slag thickness, tapping temperature and ladle life on liquid steel temperature in the ladle. However, the importance of initial refractory temperature was noticed. The CFD model developed in present work can generate the thermal history of liquid steel and refractory walls of any ladle at any stage.1. IntroductionThe control of liquid steel temperature is desired to achieve required steel quality. The low casting temperature is detrimental and may result in nozzle blockages due to premature solidification in the tundish. The phenomenon of heat losses taking place in ladles needs to be understood for prediction of liquid steel temperature. The assessment of thermal profile of liquid steel from BOF converter to caster can be done through consideration of heat losses at all points. Hlinka and Miller [1] showed that the ladle pouring temperature varies due to heat losses from molten steel into surrounding refractory layers. The phenomenon of thermal stratification was numerically simulated by Ilegbusi and Szekeley [2]. The effects of slag cover on heat loss and liquid steel flow in ladle before and during teeming to a continuous casting tundish was numerically simulated by Chakraborty and Sahai [3]. Investigators also developed some simple models to predict the steel temperature for some of the processes taking place in ladles [4-9].The present work is an effort to generate the full information about the temperature drop taking place in any ladle throughout its process cycle. This information can be used to predict liquid steel temperature and to take decisions to minimize heat losses."

Jan 1, 2012

By Lar Liljeblad

"As demands upon the earth's natural resources continue to grow, exploration companies, mining organizations and others face the problem of the need to tackle increasingly more difficult strata to open up new reserves. Innovations in materials technology and tool design have steadily improved this capability, but none perhaps so drastically as a recently introduced cemented carbide in which tool wear resistance and/or toughness can be tailored precisely to the user's drilling needs.Introduction Until about forty years ago, the bulk of rock-drilling operations had to be carried out with hardened steels. Short life between re-grinds was common especially in abrasive rock formations. Shortly after World War II, Sandvik, Sweden, pioneered the development of sintered (cemented) carbide-tipped steel tools as a means of improving drill tool life. The new material was a composite of tungsten carbide and cobalt, the latter acting as a 'cement' to bind the wear-resistant carbide grains together, and the composite, in turn, was brazed to the steel. The immediate effect was a 100-fold increase in the service life of the tool.Intractable ProblemsWhile the carbide-tipped tools served the mining and quarrying industries admirably there were, nonetheless, some seemingly intractable limitations. The greater the wear resistance of the material - the quality for which it is selected - the more brittle it is. Also, rocks vary widely in hardness and abrasiveness and no single tool, either in terms of material or shape, meets every need. Specifically, for fast penetration of non-abrasive rock, toughness must be combined with a relatively sharp tool prome. Highly abrasive rock, on the other hand, demands a substantially broad area of extremely wear-resistant material on the tool if long bit life is to be assured. Between these extremes there are innumerable variations in rock"

Jan 1, 1991

By James Kitson, Abram S. Hewitt

I HAVE now the duty—the very pleasant duty—to perform, of presenting to the Hon. Abram S. Hewitt the Bessemer gold medal for distinguished services to the iron and steel trade. When this matter was brought under consideration in London it was well known that, as Mr. Hewitt would be the first to acknowledge, there is more than one man in America upon whom we would gladly have cm ferred this distinction, and to whom this merit might be justly at tributed ; but Mr. Hewitt has been long known to our distinguished members on the other side of the Atlantic as one of the most active minds in the investigation of new methods of manufacture, and one of the most enterprising metallurgists on this side of the Atlantic. Well, gentlemen, we proposed to Mr. Hewitt that he should receive this gold medal, but I think it is quite right, and is his due, that I should state that he at once declined to receive it; and he declined in a manner which rendered it impossible to any one but very per sistent friends and very obstinate Englishmen to refuse. When we heard that our American friends had conferred once more upon Mr. Hewitt the distinction of President of the American Institute of Mining Engineers, and particularly with reference to our contem plated visit, and when we heard that he had been elected unani mously to that position, we felt that we had received the stamp of approval from this side. Gentlemen, as I said before, Mr. Hewitt has long been known to many of us in England as an advocate of scientific education. A report which he made of the metallurgical products at the Paris Exposition in 1867 was one of the matters which drew very clearly and distinctly the attention of the English iron and steel trade to the necessity of further improvement in our technical education as to iron and steel; and it was one of those beginnings which led ultimately to the foundation of the Iron and Steel Institute. The development of the ideas which 'he there investigated undoubtedly led

Jan 1, 1891

By W. C. Smith

The U.S. Bureau of Mines examined previous research on rib stability in an effort to develop a practical approach to understanding, characterizing, and controlling weak rib conditions in underground coal mines. Because success in stabilizing ribs depends on a basic knowledge of how weak ribs behave, the report reviews the mechanics of rib failure and the relationship of coal mine geology and pillar constraint to rib instability. Strategies for choosing an effective method of rib support are considered, and various rib support methods are discussed. Finally, the report documents techniques for monitoring ribs and use of models to assess rib stability; such monitoring and modeling can also help determine the most effective method for roof support.

Jan 1, 1992

By R. E. Gertsch

A mobile-modular carbon adsorption mill design and operation for small to medium sized heap leach precious metal mines is presented. In the mobile-modular strategy, charcoal columns with adsorbed metal move from small strategically located carbon adsorption loading stations to a central stripping facility and back. The design has many advantages: 1) It scales-up from pilot plant to full production. 2) It has low capital requirements. 3) Operational costs are competitive with other systems. 4) Mill production can react quickly to changes in ore grade or property area. 5) The solution circuits are simple and easy to maintain. 6) Charcoal damage is reduced.

Jan 1, 1993

By R. J. Visintainer, J. M. Furlan

"Due to the time-consuming nature of froth testing in a laboratory environment, practical limitations require the development of a method of applying a single set of performance test data (Visintainer and Whitlock, 2012) obtained for a single froth pump at a given speed to a range of froth pump speeds and sizes, % air content and liquid viscosities. Head, efficiency and flow all vary as functions of both liquid viscosity and air content. As such, it is necessary to develop a technique that can be used to interpolate from existing test data in order to predict froth performance for pumps of various sizes running at variable speeds. Details of the technique developed in order to achieve this goal, as well as the insights gained from analysis of the resulting regressions, are discussed. Additionally, comparisons are made between the performance predictions of this test-derived method and those of the Hydraulic Institute standard for the effects of liquid viscosity on centrifugal pump performance (ANSI, 2010).IntroductionPump performance data (Visintainer and Whitlock, 2012) has been collected for a froth pump using an experimental loop outfitted with an array of pressure transducers, mass flow meters, an inverted U-loop, magnetic flow meter and an assortment of other instrumentation. Experiments were performed on pure water, water and air, pure corn syrup, and corn syrup and air. Data was obtained for % air contents of 0-30% and viscosities of 1- 15,000 cSt at eight specific valve positions (eight different flows as a percentage of best efficiency flow points) and the viscosity was changed by allowing the system temperature to increase during testing. The test pump is a 710-mm diameter impeller, GIW HVF, open shrouded, vented design that has its discharge axis oriented at 45° upward from the horizontal. A schematic diagram of the froth pump test loop can be seen in Fig. 1."

Jan 1, 2015

By Stephen Birch

LATOUCHE, or the Beatson plant of the Kennecott Copper Corpn., is located in the Prince William Sound district of Alaska about 80 miles west of Cordova and 60 miles from Seward. Ore was discovered and claims located on Latouche Island in July, 1897. The mines were worked in a desultory manner until 1910, when the property was acquired by the Kennecott Copper interests. The first shipment of ore was made in 1904; only the higher grade ore was mined and no attempt was made to treat the ore until it was taken over by the Kennecott, company. Since that time the mine has been developed to produce 1500 tons a day and a mill has been erected for treating this tonnage, using flotation entirely. The orebody is more or less lenticular in shape with a maximum width of about 280 ft. and a length of about 800 ft. The southern end of the lens is split by a horse of waste for about 400 ft. The hanging-wall limit is a well-defined fault associated with a band of pyrrhotite, having an average dip of 60°. There is no defined foot wall, the value of the ore governing the limits of the mining; in one part of the mine, however, it is defined by a minor fault. The orebody is located in a shear zone of the country rock of graywacke and slate. The principal mineral is chalcopyrite associated with pyrite and quartz. The mine is located a few hundred feet from tidewater; the mill is located on the beach and the ore is hoisted direct from the mine through a vertical shaft into the mill bins. Until the past year practically all the mining had been conducted in open pits. During the past two years, the ore above the 200-ft. level has been developed and a system of stoping devised to recover this ore; however, this system has not been in use long enough to give any definite results as to costs or efficiency. It consists, principally, of dividing the orebody into stopes, across the full width of the orebody, 70 ft. wide with a pillar 30 ft. wide between the stopes. Raises are driven through the stopes at intervals of about 60 ft. and all the ore is broken by drilling from these raises; in other words, similar to a shrinkage stope, doing the drilling from the raises instead of setting up on the broken ore as is customary. The ground is very much broken up by clay slips and seams running in every direction. Shrinkage stoping had been

Jan 1, 1924

By William Kent

Mr. ASHBURNER's paper on the Classification and Composition of Pennsylvania Anthracites, read at this meeting, well shows the need of new and accurate determinations of the heating value of these coals. A similar need exists for the determination of the value of bituminous coals, since the variation in quality of the latter is greater than the variation in anthracites. The recent extensive use of liquid and gaseous fuels, " patent" fuels, tan-bark, and other refuse fuels, also makes a necessity fix some correct method of determining the relative values of each of these fuels. Mr. Ashburner has recommended that tests of coals should be undertaken by the Second Geological Survey of Pennsylvania, and Professor Dewey, as stated in Mr. Ashbnrner's paper, has suggested a plan for tests of American coals, by the Smithsonian Institution, for which an appropriation by Congress will be asked. It is to be hoped that if any extensive series of tests of coals is carried on under either Government or State auspices, the erroneous methods of test which were followed by Professor Johnson in 1842, and by Quartermaster-General Meigs in 1882, will not be adopted.* The first requisite in determining the heating-power of a fuel is proper apparatus, such as has not been used in any of the tests of American coals yet reported. In the hope that more accurate means may be used in future tests, the writer desires to call attention to an apparatus which he has designed for the purpose. Not having had opportunity for making a trial of it, nor even of having it criticised by others, he does not offer it as the best possible apparatus; but if it contains any points of value, and leads to the design of still more suitable devices by others, the object of the presentation of this paper will be accomplished. The tests by Professor Johnson and General Meigs were made by evaporating water into steam in ordinary steam-boilers. A steamboiler of ordinary construction is not a good apparatus for determining the heating power of a fuel, for the following reasons:

Jan 1, 1886

PRIOR to the World War most of the barite used in the United States for manufacturing lithopone and barium chemicals was imported. Germany, by virtue of an abundance of high-grade ore and low labor costs, was in a position to dominate the world market. With the cessa-tion of imports and with the war demand for barium chemicals, the barium chemical industry and the mining of barite became well estab-lished in the United States. This industry has continued to expand because of the increasing use of lithopone. In 1914 the sales of domestic crude barite was 52,919 tons and in 1934 it was 209,850 tons. Barite deposits of economic importance occur in at least 20 states, but the principal producers in 1934 were Missouri, Georgia, Tennessee, South Carolina, Virginia, California and Arizona. The main mining centers are located near the crude barite markets of the three principal marketing districts-the Pacific Coast, the Midwestern area, and the Eastern area. The Pacific Coast is supplied entirely by California, Nevada, and Arizona. The Midwestern area uses most of the Missouri crude and a small amount from the southern states. The eastern market is the chief competitive area. Practically all of the imported crude is marketed there; also the bulk of the southern crude and ground barite. In addition, this area absorbs a small part of the Missouri crude and 80 per cent of the ground barite. Besides the advantage of low delivered costs and purity of product, the imported barite has commanded a price differential because it is soft rather than hard, like many of the domestic ores. The inherent physical properties of the southern ores remain, but the purity can be controlled to a great extent by beneficiation. Simple washing or gravity concentra-tion has sufficed in the past, but in many cases a more efficient process now becomes imperative to remove impurities not amenable to these methods. Certain deposits now being opened are of lower grade and require more precise milling conditions. In some ores, the kind of impurities has changed as the mining advanced.

Jan 1, 1936

By Sabry A. Sabour

Metal price is among the key variables in the open pit optimization and the economic evaluation process. The common approach to handle metal prices in open pit mine planning is to optimize the ultimate pit and the mining schedules using a fixed, flat metal price. In this respect, metal price is assumed to be known with certainty throughout the entire mine life, which in some cases can reach 80 years. Given the volatile nature of metal markets and the metal price cycles, the conventional pit optimization approach may generate sub-optimized mining plans, which results in either extra costs to mining projects or lost revenues, or both. Long-term operational decisions such as future pit expansions, beyond the currently optimized limits, cannot be handled using the pit optimization approach based on flat metal prices. There is a growing interest in the mining industry to model and manage such market uncertainty in the pit optimization as well as the project evaluations in order to maximize the value of mining operations. In this paper, the author will outline a practical approach to optimize the ultimate pit taking into account the volatility and variability of metal markets. The proposed approach uses a combination of the pit optimizer of the commercial MineSight package and a simulation-based economic modeling real options valuation approach employing the least-squares Monte Carlo algorithm. MineSight pit optimizer employs both the floating cone for initial optimization exercise and the standard Lerchs-Grossmann algorithm. In this paper, Lerchs-Grossmann option will be used to generate the pit shells. Real options valuation approach used in this study is based on generating multiple metal price scenarios. Metal price uncertainty is modeled using stochastic metal price models such as the geometric Brownian motion and the mean-reverting process. The mining operational scenarios corresponding to the simulated metal prices are then optimized using the least-square Monte Carlo approach. The objective is to maximize the discounted cash flow value of the project while incorporating the operating flexibility to revise the operating status of the open pit with time as new information becomes available. The focus of this work is on the practicality of the proposed uncertainty-based pit optimization approach and the difference it can make to the technical operational mining decisions. A case study of a hypothetical open pit poly-metallic mine is provided. The deposit contains copper, gold and silver grades. The run of mine ore is sent to the process plant that produces copper concentrate with copper as the main metal and gold and silver as the by-products. Four uncertain variables are considered here include copper, gold, silver prices and foreign exchange rate. Both copper price and exchange rate are modeled using the mean-reverting process while gold and silver prices are modeled using the geometric Brownian motion. The case study is performed using both the conventional flat price pit optimization approach and the proposed uncertainty-based one to compare results.

Aug 1, 2013

Optimal gold recoveries largely depend on efficient liberation of the gold or gold-bearing minerals as well as on maximum access for the lixiviant. Thus, crushing and grinding may become the most costly part of gold ore processing. It may, in fact, represent 50% to 70% of a plant's operating costs (Michaelis, 1989). The increasing significance of refractory gold will require even more cost-efficient comminution of ultrafine sulfides and/or native gold. Transitional ore zones with semi refractory gold may respond to direct leaching if better particle fracturing is being achieved (Baum, 1991, 1993a). Many oxide ores have been left in the ground because they were unsuitable for heap leaching since conventional comminution could not facilitate economic gold extraction. Also, the costs of conventional bal1 mill operations did not permit the recovery of gold from many ultrafine, low-grade refractory ores. As shown by Marsden et al. (1993), the trend to treat ores with progressively lower grades will involve power-and leach-efficient grinding applications. Our current laboratory work shows that high-pressure grinding roll (HPGR) Polycom grinding may enable many mining companies to add large amounts of these "non-leachable" ores to their current heap or mill leach feeds. This finding may dramatically change the economics of many oxide gold ore operations and may add significant reserves to ores amenable to direct cyanidation.

Jan 1, 1994