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By Karl J. C. Harries

"12.1. NO DEPRECIATION/GAAPAll calculations and computations relating to the Royalty shall be carried out in accordance with generally accepted accounting principles consistently applied to the extent that such principles are not inconsistent with the provisions of this Schedule and the agreement attached hereto, it being specifically agreed that nothing herein contained shall permit, or be construed to permit, the Operator to deduct any amount for depletion, depreciation, amortization or any deduction that represents a non-cash outlay.Comment: In cases like net profit royalties where recoupment of prior expenditures is permitted, care should be taken to avoid any implication that depreciation may also be taken. It is only logical and equitable that Property Owners should not be permitted an apparent ability to “double dip” with respect to deductions. A provision like this example should accomplish the task. It will be noted that the example specifically contemplates that the negotiated arrangements will prevail over any requirements of GAAP. Accordingly, if the parties agree to an unusual formula for recoupment, it will not be set aside to accommodate GAAP requirements. Under GAAP, revenues and expenditures are accounted for on an accrual basis. In addition, it specifically prohibits the taking of non-cash deductions, which is in keeping with the concept of recoupment.Although in some ways the example states the obvious and could be considered redundant, its presence, especially in provisions contemplating recoupment, makes it clear to the financial people that there may well be some variations from normal practices dictated by GAAP, while at the same time confirming the availability of GAAP to fill any voids.The accounting profession often makes the caveat that application of GAAP is an “art”, not a “science”. GAAP do not provide a cure-all and can create problems that will have to be addressed. For example, GAAP contemplate that asset costs are to be reduced by investment tax credits, which can cause a problem for a payor with more than one mine."

Jan 1, 2003

By R. Altindag

In rock cutting mechanics, the effects of the rock and coal brittleness on the efficiency of cutting bits are examined by many researchers. There is no universally accepted brittleness concept as a measure of cutting efficiency. The effect of the brittleness on rock cutting has not been completely explained. The aim of this study is to correlate the relationships between Specific Energy (SE) and brittleness concepts. The applicability of various brittleness measurement methods for rock cutting efficiency has been investigated. In this study, the raw data derived from previous experimental studies were used, and the relationships between SE and brittleness concepts were investigated. The two previously used brittleness concepts, which are named as B1 (the ratio of compressive strength to tensile strength) and B2 (the ratio of compressive strength minus tensile strength to compressive strength plus tensile strength), and a new introduced brittleness concept named B3 (the area under line in relation to compressive strength and tensile strength) were evaluated in this study. The relations among these brittleness concepts for rock cutting efficiency were established using regression analysis. There is no correlation found between the SE values and the brittleness of B1and B2values. But, the SE is strongly correlated with the brittleness of B3. It was seen that the suggested brittleness of B3concept could be used as an indicator in rock cutting efficiency analysis.

Jan 1, 2003

By S. Z. Pethö, H. Yilmaz

South Deep Mine is currently undertaking numerous voidfilling projects using low strength aerated cement products. Representative samples from one such site, were taken and tested for the load deformation behaviour under uniaxial loading conditions. The process of sample collection, laboratory preparation and testing are explained in detail. The results of testing were analyzed and the critical aspects pointed out as a design consideration to be implemented as part of the quality control and assurance program. Design aspects and underground application of the aerated cement product are discussed for the particular site on 58 level SV1. A simple instrumentation has been designed and installed to enable monitoring of any future movements in this area. A quality control and assurance process has been formulated enabling all aspects of the support installation in this excavation to be signed off.

Jan 1, 2003

By G. Vouille, P. Bérest

Residual stresses observed in rocks often result from non-compatible initial strains. These stresses can be determined when the incompatibility tensor associated with the initial strain tensor is known. The residual stresses in a cylindrical rock sample can be computed the sample is considered small enough for its incompatibility tensor to be constant. Les contraintes résiduelles, dont on observe couramment les manifestations dans les roches, résultent souvent de l’existence de déformations initiales non-compatibles. Ces contraintes peuvent être calculées lorsque le tenseur d’incompatibilité associé aux déformations initiales est connu. Les contraintes résiduelles dans une éprouvette cylindrique sont données dans le cas où le tenseur d’incompatibilité est constant. Eigenspannungen, die man haeufig in Steinen beobachtet, sind oft Ergebnis einer inkompatiblen Deformation des Anfangszustandes. Diese Spannungen koennen berechnet werden, wenn der Inkompatibilitaets-Tensor der Anfangsdeformation bekannt ist. Die Eigenspannungen einer zylindrischen Probe werden fuer Fall eines konstanten Inkompatibilitaets-Tensor bestimmt.

Jan 1, 2003

By E. Munnik

The Chambishi Metals Cobalt Plant in Zambia has recently installed a novel oxidation/precipitation pressure leach process as part of the COSAC (CObalt from Slag And Copper as by-product) Project. Aniron-cobalt-copper alloy, produced by the carbothermic reduction of slag, is atomized and pumped to the COSAC Leach Plant, where cobalt and copper are recovered as dissolved sulphate salts, andiron is rejected primarily as hematite. Cobalt and copper are subsequently recovered as cathode metal in the existing Chambish ioperation by conventional electrowinning. This paper examines the challenges faced during the design and subsequent successful commissioning of the COSAC Leach Plant. The challenges discussed include alloy handling, autoclave design, autoclave cooler design, residue liquor recovery and the water balance design. Keywords: Chambishi, Avmin, COSAC, Zambia, Copperbelt, cobalt, copper, alloy handling, pressure leach, autoclaves, cooling, filtration.

Jan 1, 2003

By J. Drelich, C. L. White, Ch. Zhou, W. M. Cross, E. T. Zellers, E. M. Nadorny

A laser-based particle deposition (LBPD) technique has recently been developed at Michigan Technological University for patterning mesostructures made of nanoparticles and their clusters. The LBPD technique makes use of laser induced optical forces to transport and pattern nanoparticles on a variety of conductive and non-conductive substrates from nanoparticle-in-liquid suspension. A weakly focused laser beam is used to confine and propel particles along the laser beam. Confinement is accomplished by forces due to optical field gradients that act on polarizable particles and tend to move them to axis of the laser beam. The force propelling the particles along the direction of the laser beam arise from momentum conservation of photons scattered from the particles. In this paper, this novel LBPD technology is briefly reviewed, and several examples of patterning are presented. The size and morphology of mesostrips produced from gold and polystyrene nanoparticles, under a range of deposition conditions, have been characterized by optical microscopy, atomic force microscopy, and scanning electron microscopy. The results presented here demonstrate that gold and polystyrene nanoparticles deposited by LBPD can form clusters of particles. When deposited at an appropriate rate, such clusters can form multilayer mesostrips of high particle density. One goal of research on such systems is to fabricate arrays of parallel lines made up of colloidal particles having a range of surface functionalities. Such arrays have potential for application as novel microsensors for environmental sensors.

Jan 1, 2003

By Marcia Harris, Richard Mainiero, Michael Sapko

Since 1988, there have been 17 documented incidents in the United States and Canada in which carbon monoxide (CO) is suspected to have migrated through ground strata into occupied enclosed spaces as a result of proximate trench blasting or surface mine blasting. These incidents resulted in 39 suspected or medically verified carbon monoxide poisonings and one fatality. To better understand the factors contributing to this hazard, the National Institute for Occupational Safety and Health (NIOSH) carried out studies in a 12-foot diameter sphere to identify key factors that may enhance the levels of CO associated with the detonation of several commercial trenching explosives. The gaseous detonation products from emulsions, a watergel, and ANFO blasting agents as well as gelatin dynamite, TNT, and Pentolite boosters were measured in an argon atmosphere and compared with those for the same explosives detonated in air. Test variables included explosive formulation, wrapper, aluminum addition, oxygen balance, and density. Major contributing factors to CO production, under these laboratory test conditions, are presented. The main finding is the high CO production associated with the lack of afterburning in an oxygen poor atmosphere. Fumes measurements are compared with the manufacturer’s reported IME fume class and with the Federal Relative Toxicity Standard 30 CFR Part 15 in order to gain an understanding of the relative toxicity of some explosives used in trench blasting.

Jan 1, 2003

By Steve Kral

President Bush’s National Energy Program and his Clear Skies Initiative both emphasize the use of coal to help meet the nation’s growing energy needs. And why not? Coal is currently responsible for more than 50 percent of the nation’s electricity generation. That fact, though, seems to be lost on policy makers, the environmental community and the public. Critics of coal advocate the increased use of renewable energy sources and the increased use of natural gas. Renewables, though, are only capable of generating a tiny fraction of the power required. Natural gas is expensive. And natural gas production cannot keep up with demand, especially given the nation’s increasing energy needs.

Jan 1, 2003

By Bruce Geller

Attending the Prospectors and Developers Association of Canada (PDAC) meeting and exhibit has become an annual tradition for many in the mining industry. Similar to last year’s synopsis, this report is an overview of the 2003 conference from the eyes of a consulting mineralogist. It is supplemented by conversations with other participants. And it examines the conference handouts. Certain segments of the mining industry have seen improvement throughout the year in terms of metal prices, stronger demand and renewed interest by the investment community. Other segments continue their decline due to depressed commodity prices, higher oil prices, a continued weakness in the global economy and war uncertainties. SARS was known to the world, but it was not a Toronto epidemic during PDAC. In short, this year’s PDAC was permeated by an air of anxiety about the Middle East.

Jan 1, 2003

By P. den Hoed, J. Nell

Tests were conducted on samples of rutile, titaniferous slag and ilmenite; each sample was mixed with coke and chlorinated in a bubbling fluidized bed at 1000°C. Profiles of the rates of chlorination of species were constructed from chemical compositions of the bed residues at different durations. From the start FeO and MnO are chlorinated quickly and all but entirely in a fraction of the time it takes to chlorinate all the TiO2. When the level of FeO is significant, as in slag and ilmenite, FeO is chlorinated faster than TiO2is. In these oxides, there is an inverse relationship between the rates of chlorination of FeO and TiO2during this first stage; the relationship, moreover, correlates linearly with the initial percentage of FeO in the oxide. We identify three stages in the chlorination process; a first, in slag and ilmenite, when FeO is being chlorinated; a second, when TiO2is most readily chlorinated; and a third, towards the end, when the levels of TiO2are reduced to those of other species. The rates at which individual species are chlorinated are analysed in terms of their appreciation or depreciation with respect toTiO2

Jan 1, 2003

By R. Abela

In over ninety per cent of mineral sand plants, the most commonly used equipment is the spiral concentrator. The tonnage treated over typical spiral plants can range from as low as 200 ton per hour up to 6 000 tons per hour. Due to the limited capacity of each spiral, plants consist of multiple spirals assembled into banks. The mixture of minerals present in the sand feed requires several spiral stages to achieve the desired mineral recovery. Due to the complexity of the spiral circuits, there are always some design and operating problems that present themselves in plants. These range from slurry distribution, spirals operating at incorrect design parameters and feed variations. The material being treated is difficult to maintain in suspension due to its high density, resulting in segregation and preferential flow in pipelines, distributors and sumps. The objective of this paper is to highlight common problems associated with spiral installations to designers and operators of plants. Practical solutions are recommended in order to prevent and minimize these mistakes in the design. These solutions may be used to improve performance on operating plants.

Jan 1, 2003

By Tim O’Neil

Caterpillar has introduced its 5090B front shovel, to work with 40 to 70 st (36 to 63 t) trucks. The new unit replaces Cat’s 5080 hydraulic excavator. The 5090B offers more engine horsepower, higher flow, greater digging forces, higher swing torque, faster swing speed and more drawbar pull than its predecessor. It can also handle larger bucket sizes than the previous model. These improvements enhance productivity and make the 5090B a high-volume material handler for hard rock and aggregates producers.

Jan 1, 2003

Changes in reductant and energy inputs which are required to adjust the slag composition in an ilmenite smelter to a higher or lower FeO content are calculated. The calculated changes are based on the assumption that solidification equilibrium with the freeze lining constrains the slag composition to follow a eutectic groove in the TiO2-FeO-TiO1.5phase diagram. Calculated equilibrium conditions along the eutectic groove are presented, and form the basis of the calculations. The inputs of energy and carbon need to deviate strongly from the steady-state values to adjust the slag composition. The inputs required at any given time depend on the desired rate of change of the slag composition, and the current slag composition. The steady-state relationship of a change in energy input of 5 kWh corresponding to a 1 kg change in carbon input also holds for the changed inputs during transient changes in FeO content. Keywords: Ilmenite smelting, freeze lining, solidification, eutectic

Jan 1, 2003

By A. Golshani, M. Oda, K. Suzuki, T. Takemura

Anisotropic behaviours of OhshimaOshima granite were investigated by carrying out uniaxial compression tests, together with observations of microcracks under an optical microscope. The elastic modulus tensor of Oshima granite at 10 per cent strength,E10, were calculated using theoretically formulation of elastic modulus tensor in terms of the second-rank crack tensor for pre-existing open microcracks. Furthermore, with the assumption of orthorhombic elasticity, the nine moduli of Oshima granite E10were determined by uniaxial compression test. Twenty-onemoduli of samples, calculated without assuming any symmetry, also showed orthorhombic features. Direction of the symmetry axes agreed well with the orientation of preexisting cracks. Comparison of crack tensor-based formulation results with the experimentally determined one show that the anisotropy of elasticity of Oshima granite is caused by pre-existing open microcracks, not by pre-existing healed microcracks and also crack tensor formulation can be used, as a first-order approximation at least, to describe the anisotropy of Oshima granite induced by pre-existing open microcracks. ZUSAMMENFASSUNG: Das anisotrope Verhalten des Oshima-Granits wurde mit Hilfe voneinachsigen Kompressionstests und durch die Betrachtung von Mikrorissen unter einem optischenLichtmikroskop untersucht. Das Elastizitätsmodul von Oshima-Granit bei 10 Prozent Kraft E10wurde berechnet, indem man die Formulierung des Elastizitätsmodultensors, ausgedrückt alsRisstensor zweiter Ordnung theoretisch auf bereits existierende Mikrorisse angewandt hat.Außerdem wurden die neun Module des Oshima-Granits unter der Annahme orthorhombischerElastizität E10mit einem einachsigen Kompressionstest bestimmt. Einundzwanzig Stichproben,die ohne die Annahme irgendeiner Symmetrie genommen wurden, zeigten ebenfallsorthorhombische Merkmale. Die Richtung der Symmetrieachsen stimmte mit der Orientierungbereits vorhandener Risse überein. Der Vergleich der Ergebnisse der auf dem Risstensorbasierenden Formulierung mit der experimentell bestimmten Formulierung zeigt, dass dieAnisotropie der Elastizität von Oshima-Granit von bereits vorhandenen offenen Mikrorissenverursacht wird, und nicht von vorhandenen vernarbten Mikrorissen, und dass dieRisstensorformulierung auch zumindest für eine Annäherung erster Ordnung benutzt werdenkann, um die durch vorhandene offene Mikrorisse induzierte Anisotropie des Oshima-Granits zubeschreiben. RESUME: Les comportements anisotropes du granit d’Oshima ont été étudiés en réalisant destests de compression simple, et en observant les microfissures au microscope optique. Le tenseurdu module d’élasticité du granit d’Oshima sous une résistance de 10 pourcents, E10, a été calculéen se servant de la formule théorique du tenseur de module d’élasticité basé sur le tenseur defissures de second ordre des microfissures ouvertes préexistantes. En outre, sur base del’hypothèse de l’élasticité orthorhombique, les neuf modules du granit d’Oshima ont étédéterminés par des tests de compression simple. Vingt et un modules d’échantillons, calculés endehors de toute hypothèse de symétrie, ont aussi montré des caractéristiques orthorhombiques. Ladirection des axes de symétrie correspondait bien à l’orientation des fissures préexistantes. Lacomparaison des résultats de la formule basée sur le tenseur de fissures avec les résultatsdéterminés expérimentalement montrent que l’anisotropie de l’élasticité du granit d’Oshimaprovient des microfissures ouvertes préexistantes, et non de microfissures préexistantes referméeset que la formule du tenseur de fissures peut servir, au moins comme première approximation, àdécrire l’anisotropie du granit d’Oshima marqué par des microfissures ouvertes préexistantes.

Jan 1, 2003

By J. Werfling, J. R. Kiehl

SUMMARY: The effects of blasting on structures are assessed on the basis of the maximum amplitudes of the occuring vibration velocities. If the standard values in the German Standard DIN 4150 are not exceeded, damages to structures are not to be expected. The estimation of the maximum vibration amplitudes is usually based on experience or on emperical formulae. However, a comparison of expected with measured values shows that these estimations are not conservative, particulary in case of small distances between blasting locations and structures. More reliable predictions are possible on the basis of numerical analyses, which simulate the three-dimensional propagation of waves with consideration of the geomechanical and geometrical conditions. In addition to the expected velocities, these analyses also allow the determination of stresses resulting from dynamic loading. If the dynamic stresses are known, the effects of blasting on structures can be predicted. ZUSAMMENFASSUNG: Die Auswirkungen sprengbedingter Erschütterungen auf bauliche Anlagen werden in der Praxis auf der Grundlage der Maximalamplituden der auftretenden Schwinggeschwindigkeiten beurteilt. In der DIN 4150 werden Anhaltswerte angegeben, bei deren Einhaltung Schäden von Gebäuden nicht zu erwarten sind. Die Abschätzung dieser Schwing-geschwindigkeiten erfolgt meist auf der Grundlage von Erfahrungswerten oder empirischer Formeln. Der Vergleich der prognostizierten Werte mit Meßergebnissen zeigt jedoch, daß diese Ansätze insbesondere dann, wenn die Abstände zwischen den Sprengorten und den Gebäuden gering sind, nicht konservativ sind. Zuverlässigere Prognosen sind auf der Grundlage von numerischen Berechnungen möglich, in denen die räumliche Ausbreitung von Erschütterungen unter Berücksichtigung der geomechanischen und geometrischen Verhältnisse simuliert wird. Mit derartigen Berechnungen können die zu erwartenden Schwinggeschwindigkeiten und die aus der dynamischen Beanspruchung resultierenden Spannungen ermittelt werden. Dies ermöglicht Aussagen über die Auswirkungen sprengbedingter Erschütterungen auf Bauwerke. RÉSUMÉ: Les conséquences de vibrations résultantes d'explosions pour des bâtiments sont estimés dans la pratique à partir des amplitudes maximales des vitesses d'oscillation. Dans la norme allemande DIN 4150 des valeurs d'orientation sont données, avec l'observation desquelles de dommage à des bâtiments n'est pas à présumer. Ces vitesses d'oscillation sont estimés généralement à partir de valeurs d'expérience ou de formules empiriques. La comparaison des valeurs prédits avec des résultats de mesures montre cependant que ces hypothèses ne sont pas conservateurs, en particulier si les distances entre les lieux de sautage et les bâtiments sont petites. Des prédictions plus fiables sont possibles à partir de calculs numériques, dans lesquelles la dissipation spatiale de vibrations est simulée en considération de la situation géoméchanique et géométrique. Avec tels calculs les vitesses de vibration à présumer et les contraintes résultantes de l'effort dynamique peuvent être établies. Cela permet de constater sur les conséquences de vibrations résultantes d'explosions pour des bâtiments.

Jan 1, 2003

Paper written on project work carried out in partial fulfilment of M.Sc. (Chemical Engineering)degree Identification of non-linear systems can be a daunting task and in the process industries the problem is complicated considerably by the presence of noise from various sources, non-stationarity of the data and intermittence, such as observed in particulate flows. Traditional methods, such as frequency analysis and linear model-ling do not handle these systems well. Similar problems arise with the application of non-linear theory developed over the last few decades, where much of the analysis depends on embedding of the data in a phase space or pseudophase space, since these methods were not originally designed to deal with noisy systems. In contrast, singular spectrum analysis is a method which can be used to identify structure and distinguish noise from important information in multivariate data, such as the trajectory matrices of time series measurements. It provides an orthogonal basis onto which the data can be transformed, so that components of the time series can be investigated individually. With Monte Carlo methods, the components can be compared with those from linear surrogate data in order to identify possibly non-linearities in the data. In this paper, this versatile technique is briefly explained and illustrated by means of case studies.

Jan 1, 2003

By V. Labiouse, M. Jaboyedoff

GIS documents are of great interest for a quick and low-cost determination of areas endangered by rockfalls. They allow (i) the detection of potential instabilities from steep slopes and cliff areas, and (ii) the preliminary estimation of potential run-out areas by means of a so-called cone method. After the presentation of the tools used to compute these areas, the paper focuses on two methods developed for a preliminary hazard mapping, one at regional scale and the other at local scale. Mittels GIS-Dokumenten können von Steinschlag bedrohte Gebiete schnell und kostengünstig ermittelt werden. Die sogenannte Kegelmethode erlaubt die Erkennung potentiell instabiler Zonen von Steilhängen und Felswänden sowie eine erste Einschätzung der möglichen Reichweiten. Nach der Vorstellung der zur Berechnung der bedrohten Gebiete benötigten Hilfsmittel stellt der Artikel zwei Methoden zur vorläufigen Gefahrenkartierung in lokalem und regionalem Maßstab vor. Les SIG sont très intéressants pour une détermination rapide et peu onéreuse des zones affectées par des chutes de blocs. Ils permettent une détection des zones potentiellement instables et une estimation sommaire des zones de propagation des blocs par une méthode dite des cônes. Après la description des outils utilisés pour définir ces zones, l’article expose deux méthodologies élaborées pour un zonage préliminaire du danger, l’une à l’échelle régionale et l’autre à l’échelle locale.

Jan 1, 2003

By Trevor R. Ellis

"The valuation of mineral properties in the U.S. is only partially regulated. The regulations which have jurisdiction or impact appear to have such mainly as a consequence of unintended fallout, since the regulations were designed for other purposes. Court case history can also be important. The combined results are a mixture of bad and good, with important lessons to be learned.Since 1981, the Securities and Exchange Commission has prohibited U.S. listed companies from reporting quantitative estimates of mineralization and the value of mineralization, other than proven and probable reserves. This results in the minerals appraiser (valuator) working with a shortage of data in his everyday work, both on the subject property and in sales analysis.Between 1989 and 1995, all 50 states and essentially all Federal agencies adopted the Uniform Standards of Professional Appraisal Practice (USPAP) for real property appraisals (valuations). The major national appraisal societies also require their members to abide by USPAP. A significant portion of minerals appraisals must now follow these standards. This paper will discuss the content of USPAP. It provides a very good framework for the valuation of a minerals property or a mine, both as real property and as a business. However, the credentialing standards for real property appraisers are now prohibitive for minerals appraisers."

Jan 1, 2003

By F. R. Camisani-Calzolari

Surface defects on continuously cast slabs require treatment by grinding. This extra phase in the process causes lower throughput of final product and extra energy costs. The elimination of slab treatment after casting implies that slabs can be direct rolled or hot charged, resulting in higher throughput and lower energy costs. To increase the number of slabs that can be direct rolled or hot charged, defects have to be predicted before a slab has completed the casting process. Transversal and longitudinal cracking, casting powder entrapment and other inclusions, bleeders, deep and uneven oscillation marks, stop marks and depressions are the defects thatare considered for prediction. A structure with two models is proposed. The first model describes the effect of mould level, water inlet temperature and casting speed (MV?manipulated variables) on 38 thermocouple temperatures (IV?intermediate variable). Casting speed is a manipulated variable while mould level and water inlet temperature are treated as measured disturbances. This model is known as the MV to IV model, and is used to control the occurrence of defects. The second model describes the effect of the thermocouple temperatures on the defects at different positions and locations on the slabs (OV?output variables). This model is known as the IV to OV model and is the predictor of defects. The models are determined using time-series methods in the form of auto regression with exogenous input using data of approximately 500 slabs cast over a period of 6 months. The models are validated using plant data from 44 slabs gathered three years later, with good results. As an example, published results give a sensitivity and specificity of 61.5 per cent and 75 per cent respectively for longitudinal cracks on validation data, while the presented method gives 63.6 per cent and 93.5 percent, respectively. The IV to OV model is used in an inversion to determine the optimal thermocouple temperatures for each slab width. Keywords: Continuous casting, model, defect, prediction, direct rolling, hot charging, goodness-of-fit, correlation, time-series, soft sensor, ARX.

Jan 1, 2003

In recent years several mine researchers have studied the optimization of cutoff grade with the purpose of maximizing Net Present Value (NPV). The best and most popular one is the Lane algorithm. Based upon the Lane algorithm it is possible to calculate the optimum cutoff grade for mine, mill, and refinery capacities for single metal deposits with variable grades. The Lane algorithm cannot be used in multiple metal deposits. The reason is that, while in single metal deposits six points are possible candidates for the optimum cutoff grade, in multiple metal deposits an infinite number points are possible candidates for the optimum cutoff grades and objective function evaluation of these infinite points is impossible. In this study the Golden Section search method was used to calculate optimum cutoff grades of multiple metal deposits for the same conditions as Lane assumed in single metal deposits. Based on this method, grade-tonnage distribution uncertainty space of problem is guessed. In the next step, by selecting test points in uncertainty space and evaluating the objective function at these points, a part of uncertainty space will be eliminated. The procedure is then repeated until the uncertainty space has been sufficiently reduced to ensure that the optimum cutoff grades have been located to the required accuracy. Key words: Optimum cutoff grades, Optimization, Net Present Value (NPV), Golden Section search method

Jan 1, 2003