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By Trevor R. Ellis

Minerals appraisers/valuers often find great difficulty in attempting to employ the sales comparison approach to the market value appraisal of development and operating stage mineral properties. An important factor generally overlooked is a comparison of net operating income (NOI) margins on a per-unit-of-production basis between mineral properties, whether these be demonstrated or forecast margins. NOI margins can vary greatly between mines or quarries that are producing similar products. Ultimately, the expected NOI margin determines what a buyer is willing to pay for an income-producing property. Here, common criticisms of the sales comparison approach by mineral appraisers are introduced. These are counterbalanced by raising some issues in the way the inputs for the income approach are usually derived by minerals appraisers and by review of some conspicuous examples of the much-too-common misuse or abuse of the income approach in market value mineral appraisals. Example transaction analyses and sales comparison analyses are used to demonstrate the author?s methodology for adjusting units of resource in his transaction adjustment tables. The examples are used as the basis for a discussion of ways to employ adjustments for operating economics and many other factors, while warning against the potential for double counting. The conclusions include a recommendation that minerals appraisers attempt to apply at least two of the three valuation approaches when appraising the market or fair value of development and operating stage mineral properties, the two being the sales comparison and income approaches.

Jan 1, 2011

By N. T. Lowe

This Bureau of Mines publication presents salient deposit information in abstract form on 119 principal mineral deposits in the State of Nevada. Commodity coverage addresses 17 critical and strategic commodities that appear to have commercial production potential in the State. The core of the deposits described is taken from those properties evaluated d under the Bureau of Mines Minerals Availability Program (MAP); additional deposits are included to provide a more complete coverage. Institutional and infrastructural factors affecting mineral development are also discussed.

Jan 1, 1985

By Mike Tracy

This section of the Handbook deals with general principles to be evaluated in the development of a mining operation. It addresses the major issues that must be examined to fully evaluate a mining venture. Of course, one of the main topics to be evaluated is mine planning, which is covered in more detail in other sections (13, 17) of the Handbook and should be referenced in mine development projects. The topics to be discussed in this introduction include equipment and supplies, infrastructure, utilities, and project management. In any of the aspects mentioned, the current existing conditions at or near the mine site must be evaluated. This will include assessment of current use of utilities, infrastructure, housing, equipment suppliers, etc., as well as anticipated growth, both in the supply aspect of these systems as well as projected usage on these systems. After full assessment of both these aspects, an evaluation must be made as to the requirements the project will place on these items. Assessment must be made as to any up-grades required to bring the project on line, what impact the project will have on existing or expanded systems, and anticipated future growth impacts on support systems not only of the project but of other surrounding industry and urban devel-opment

Jan 1, 2008

By R. S. Dewey

The purpose of this study was to assess the various aspects of public safety related to the thousands of abandoned or inactive underground mines found throughout Western Colorado. Review of available published mine inventories yielded data on over 8,000 abandoned underground mines. A random sample of 200 mines was then selected for field visits representative of mining activity in Colorado. Inspections of the openings at two hundred abandoned underground mines were performed recording descriptive information regarding the opening, the mine site, the surrounding area, the primary opening hazard, secondary hazards related to structures or dumps, other openings to the same mi ne, available construction materials, possible safeguard methods, and any special observations such as apparent activity, previous closure attempts, environmental constraints on construction, and access problems. Of the 200 mines visited, twenty mine openings representative of varying geologic, environ-mental, access, and mining conditions were selected for detailed low-cost safeguard application. Description of these safeguards is presented in narrative, itemized labor-materials equipment tabulations, and illustrations. Research into the regulations of mine closure and safeguards was also undertaken to determine jurisdiction of public lands. Recommendations were suggested to improve the awareness and ability to continue this program into an implementation stage.

Jan 1, 1980

By C. H. Johnson

This paper on the out-and-fill method of mining is one of a series on mining methods published by the United States Bureau of Mines. It has been compiled chiefly from recent publications of the bureau describing in detail mining methods and costs at various mines. Other sources of information were the technical press, the Transactions of the American Institute of Mining and Metallurgical Engineers, the Mines Haudbook, and company reports. References other than those mentioned in Table 1, which lists the mines entering into this discussion and gives general data regarding them, are given in the body of the paper. The authors wish to acknowledge the kind assistance of many operating officials, either through correspondence or in the course of numerous visits to their mines. DEFINITION OF CUT-AND-FILL STOPING The out-and-fill method of stoping is that method in which relatively small sections or slices are taken successively from the lower surface of a block of ground by open-stoping methods, the broken ore being removed and each section filled with waste material before the next is mined. This definition excludes shrinkage stoping, even with subsequent filling; it excludes square-set and fill methods; it excludes the Mitchell slice method, which may be classed as underhand square-setting; it excludes the systematic use of stull sets and filling, which is a variation of square-setting; it excludes any method involving the caving of the ore, walls, or overburden during the process of extraction, although caving may be allowed to take place when the waste fill is withdrawn for use in other stopes; and it excludes any open-stope method without filling. Through variations, which will be discussed later, the cut-and-fill method merges into shrinkage stoping, open stoping, or square-setting. The use of casual timber support, such as props, stulls, or timber cribs for holding up weak portions of the back does not constitute a change from cut-and-fill to square-set mining.

Jan 1, 1933

By H. A. Thorne

This paper describing the mining practices at the Chino mines at Santa Rita, Grant County, N. Mex., is one of a series being prepared by the Bureau of Mines on mining practices, methods, and costs in the various mining districts of the United States. The Nevada Consolidated Copper Co., Chino mine's, operates an open-cut copper mine at Santa Rita, Central mining district, Grant County, N. Mex. This mine is located about 16 miles east and slightly north of Silver City, the county seat. The ore is-transported in standard railroad cars by the Atchison, Topeka & Santa Fe Railway Co., approximately 10 miles to Hurley where it is milled. The concentrated are shipped approximately l'70 miles over the same railroad to the smelter of the American Smelting and Refining Co., at El Paso, Tex. (fig. 1)

Jan 1, 1931

By K. Sugawara, Y. Hirakawa, A. Sato

The rock mass properties such as deformability and permeability are highly dependent on the existence of cracks. The Ratio of Crack Opening Dependency (RCOD) was proposed as a new index to evaluate the deformability of infinite jointed rock mass. The RCOD is defined as the ratio of total amount of crack opening and the total deformation of jointed rock mass. The theoretical relation between the RCOD and the effective compliance of jointed rock mass is discussed and confirmed through two-dimensional numerical analysis by the SC-DDM, together with the applicability to the rock engineering. Les propriétés de masse rocheuse telles que la déformabilité et la perméabilité sont très dépendantes de l'existence de fissures. Le rapport de dépendance d'ouverture des fissures a été proposé comme un nouvel index d'évaluation de la déformabilité de masse rocheuse à assemblage infini. Le rapport de dépendance d'ouverture des fissures est défini comme étant le pourcentage de quantité totale d'ouverture des fissures et de déformation totale de la masse rocheuse assemblée. Le rapport théorique entre le rapport de dépendance d'ouverture des fissures et la compliance efficace de masse rocheuse assemblée sont traités et confirmés au travers d'une analyse numérique à deux dimensions par SC-DDM en même temps que l'applicabilité à l'ingénierie des roches. Die Felsmasseneigenschaften wie Verformbarkeit und Durchlässigkeit sind hochgradig abhängig von dem Vorhandensein von Rissen. Das Verhältnis der Riss-Öffnungsabhängigkeit (RCOD) wurde als neuer Index der Verformbargkeit von infinit zerklüfteter Felsmasse vorgeschlagen. Der RCOD wird als Verhältnis der Gesamtmenge der Rissöffnungen und der Gesamtverformung der zerklüfteten Felsmasse definiert. Die theoretische Beziehung zwischen RCOD und der effektiven Verformbarkeit von zerklüfteter Felsmasse wird diskutiert und durch zweidimensionale numerische Analyse mit SC-DDM bestätigt, zusammen mit der Anwendbarkeit auf Bergbautechnik.

Jan 1, 2003

By Frank E. Cash

Published or available data on safety in quarries are few except those pertaining to blasting issued by manufacturers of explosives. During the past 25 years the quarrying industry (including various types of quarries producing many different materials) has had a markedly improved accident experience. The downward trend has not been phenomenal or has it been uniform from year to year, owing to occasional major disasters; but from the information at hand it appears that improvement during the 25-year period has been definite.

Jan 1, 1941

By Oliver Bowles

[Simple systematic accounting that adequately records all transactions has long been regarded as essential to the welfare of any business enterprise. Some of the defects that detract from the prosperity of the slate industry are attributable to a lack of effectiveness in cost keeping. This condition has promoted the United States Bureau of Mines to make a detailed study of accounting methods for the slate industry, and to present for consideration a system of accounts, which it is believe would enable the industry to attain more economical management and operation if accepted by a fair proportion of its important units. The method of accounting presented herein has been worked out with the assistance of leading slate producers and the recommendations are tentative and are submitted in this form as a means of developing constructive criticism. Believing that cooperative effort in this, as in many ether problems will bring the most enduring benefits to the industry as a whole, the writer urges that the cost earnest consideration be given to this vital problem now facing the slate industry.]

Jan 1, 1929

By Thomas J. Peters

In 1987, at the request of the U.S. Bureau of Land Management, the U.S. Bureau of Mines studied the 15,174-acre Sleeping Giant study area, including the 6,112-acre Wilderness Study Area (MT-075-111), in order to evaluate its identified mineral resources. The study area is located in Lewis and Clark County, MT, about 30 miles north of Helena. Sleeping Giant Mountain trends west-northwest from the Missouri to the eastern crest of Little Prickly Pear Canyon (the route of Interstate 15), and has several summits over 6,000 ft. Geologically, the area is in the Disturbed Belt, and a large block of Middle Precambrian metasedimentary siltstone and underlying shale has been thrust northeast over younger, sedimentdry volcanic and intrusive rocks.

Jan 1, 1988

By David M. Abbott

This paper is a companion to, and amplification of, the ?History? section of the 2014 version of the SME Guide for Reporting Exploration Results, Mineral Resources, and Mineral Reserves (SME Guide). The need for the careful examination and evaluation of mineral deposits has long been recognized. In the book De Re Metallica, Georgius Agricola noted, ?Moreover, a prudent owner, before he buys shares, ought to go to the mine and carefully examine the nature of the vein, for it is very important that he should be on his guard lest fraudulent sellers of shares should deceive him? (1556, p.29). Agricola further stated, ?Now a miner, before he begins to mine the veins, must consider seven things, namely: the situation, the conditions, the water, the roads, the climate, the right of ownership and the neighbors? (1556, p. 30). The elements of Agricola?s seven things, much expanded, are incorporated into the 2014 SME Guide. As reflected in this quotation, veins were the primary concern of mining until 20th century technology permitted bulk mining techniques. The need for standardization of reserve descriptions arose along with the development of western mining in the United States and the concurrent development of mining engineering and mining geology as professions. By the turn of the century, debate about terminology of various classes of reserves was in full swing. Herbert Hoover noted in 1909 (p. 16-17), ?The old terms ?ore in sight? and ?profit in sight? have been of late years subject to much malediction on the part of engineers because these expressions have been so badly abused by the charlatans of mining in attempts to cover the flights of their imaginations. A large part of Volume I of the Institution of Mining and Metallurgy has been devoted to heaping infamy on these terms, yet not only have they preserved their places in professional nomenclature, but nothing has been found to supersede them. ?Some general term is required in daily practice to cover the available field of visible ore, and if the phrase ?ore in sight? be defined, it will be easier to teach the layman its proper use than to abolish it. In fact, substitutes are becoming as badly abused as the originals ever were. All convincing expressions will be misused by somebody.? Hoover (1909) noted that the common terms at the time were: ? Positive ore or ore developed: Ore exposed on four sides in blocks of a prescribed size. ? Ore blocked out: Ore exposed on three sides within a reasonable distance of each other. ? Probable ore or ore developing: Ore exposed on two sides, ? Possible ore or ore expectant: Ore in whole or in part below or beyond the range of vision. Hoover stated that these, and similar terms, overlapped and had the difficulty of failing to account properly for geologic variation in metal distribution beyond the exposed face. Certainly assuming extension of values along a vein is reasonable, but how far? Also, these definitions are for vein deposits, not all types of deposits are in veins. Hoover (1909, p. 19), therefore, defined the following terms. ? Proved ore: Ore where there is practically no risk in failure of continuity. ? Probable ore: Ore where there is some risk, yet warrantable justification for assumption of continuity. ? Prospective ore: Ore that cannot be included in the above classes, nor definitely known or stated in any terms of tonnage.

Feb 1, 2014

This report presents production and delivered costs for coal exports from the five major Western coal-exporting countries: Australia, Canada. Colombia, South Africa, and the United States. Cost data were compiled from visits to 43 mines by U.S. Bureau of Mines engineers between 1985 and 1990. All report costs are in January 1989 U.S. dollars per short ton. Production costs for raw coal are divided into mining and regulatory categories. Costs are broken down by type of cost, type of mine. and country. Scheduled operating and capital costs for raw coal were processed by the Bureau's MINSIM discounted cash flow program to determine total production costs calculated at 0% and 15% discounted cash flow rates of return (DCFROR). Delivered costs are for salable coal delivered to various markets. Costs are broken down by supply country, market, and type of cost. Scheduled operating and capital costs for salable coal were processed by the Bureau's MINSIM discounted cash-flow program to determine total salable coal costs at 0% DCFROR. Added to total salable coal costs were transportation and port costs to get delivered costs. Comparative overview information on the coal industries of the five study countries are appended. This appendix includes information on industry economics and exports, production and reserves, and coal industry issues.

Jan 1, 1993

By Robert L. Lappi

Volume I of this report described the demonstration of cross-ridge mountaintop coal mining. This document, Volume II, is intended for use as a supporting document to Volume I. This report describes the MATHMINE Mine Simulation System, a modularized software system used to support the demonstration of cross-ridge Mountaintop coal mining. The MATHMINE Mine Simulation System was used to generate mine plans for coal extraction at lowest cost. The functional details, data requirements and output of the software system are detailed here. The computer program was written in FORTRAN. One module which generates resource location data required the use of SAS?.

Jan 1, 1984

MR. SHUBART: Mr. Miller's paper mentioned the two processes that seemed to be a success, the Smith process and the Piron process. I suppose the main difference is this, that Smith's process is to furnish domestic fuel and the by-products while the Piron process that Ford is installing is for fuel for power plants. I would like to ask Mr. Miller something about the commercial cost of the process. With the briquette you must make it cheap enough to sell. What are the commercial possibilities of Smith's briquette? MR. MILLER: It is pretty hard to say what the cost would be at this time, owing to the fact that slack has advanced double, or even more at the time I was in New York with the plant, but at that time it was costing $1.10 for the operation. You can add to that, of course, the cost of the coke. One dollar and ten cents was the entire cost of plant operation. It takes about one and one-half tons of coal to make a ton of briquettes. One dollar and ten cents takes care of all the material, cost, labor, handling, etc. Labor was much cheaper then. I would say it would cost about $2.20 now. The cost of coal is what you can buy it for on the market. I don't think, however, that the carbocoal process will ever meet with any great favor for the simple reason that it is really a prepared fancy fuel. It is going to be nice for people in offices where they want a grate or for families where they want a nice clean fuel. It leaves no stain on the fingers, no odor to it. It seems in carbonizing coal we change the carbon molecule. For instance, we are all familiar with the diamond. It is carbon, yet it requires a tremendous heat to burn a common little diamond. But you can set a piece of charcoal afire, which is also carbon, with a match. The molecular form has been changed in carbonizing coal, i. e., it is larger. Carbocoal will fire very readily, it can be started with a piece' of paper. I think the Piron process will be the process, i. e., to simply take out the tars and light oils, then fire direct-have the distillate plants right on the job. CHAIR: Can Mr. Shubart tell us something of the mechanical part of the Piron process? MR. SHUBART: The Piron process is of interest because Mr. Ford is taking it up. He has made so few mechanical mistakes it makes us feel that it is a success. Piron is a chemist of high accomplishment and reputation. The thing about the proces is its simplicity. Mr. Smith's is a very elaborate process, but Piron has gotten around all that. Piron feeds the raw coal in at about one-half inch mesh or smaller. He feeds it into a retort about 55 feet long, 16 feet wide over all. He has a hearth about 6 feet wide and the length of the retort. The base of the hearth that carries the coal is a conveyor, a flat cast iron conveyor, a very massive affair, very accurately made, so that there is no loss of coal. Between the upper and lower strands of the ' conveyor is a bath of molten lead which gives an accurate control of temperature. For best results he must have temperature of not under 800 F., not over 1,300 degrees F., about 1,100 or 1,200 F. seems to be ideal for getting greatest yield of oils and the best tars and other by-products. This lead bath has a system of flues running through it that

Jan 1, 1923

By E. D. Gardner

A general survey of the mineral industries of the Black Hills is being made by the Bureau or Mines, but this report is confined to the tin deposits of that region. Because of the strategic importance of tin in a national emergency, special attention was given in the field to deposits of this metal. The present paper outlines the procedure that would be required for determining the potentialities of the most promising deposits as emergency sources of tin and gives estimates of the cost of sampling and rehabilitating some of the old tin mines. Tin mining in the Black Hill was quiescent in 1938. Tin occurs in two areas inn the region. The deposits have received considerable attention, and since 1884 numerous articles have been written about them. It is estimated that between 7 and 15 million dollars has been spent in promotion expenses, acquiring claims, development work, and equipment; production, has totaled about 160 long tons of metallic tin worth about $95,000.3/

Jan 1, 1939

By AIME

The Taconites Are Ready, the editorial appearing on P. 933 of the September issue, has provoked comment from several informed engineers to the effect that the indicated profit margin was considerably exaggerated. The cost figures in the editorial, taken from the Congressional Record, were characterized as inaccurate by some correspondents. The theme of the story was, however, substantiated in the announcement (P. 1023, October) that Republic and Armco had joined forces in a $160 million project for taconite development. Chief among the dissenters was E. W. Davis, , Director of the Mines Experiment Station at the University of Minnesota. Mr. Davis has worked up the following set of cost figures:

Jan 1, 1950

By Ralph H. Phelps

WHAT information do you have on precision investment casting? Please send me all available information on the removal of paraffin from oil wells and pipe lines. How can I find out how to remove magnesium oxide from lime? I want a good book on the pickling of steel. Can liquid oxygen be used as an explosive in a mine? Where can I get a bibliography on the plasticity of metals? These questions, selected from the scores of questions asked the Engineering Societies Library staff every day, indicate some of the diversity of the requests received. The samples chosen relate to interests of AIME members but the questions that come to the Library by mail, telephone, telegraph, and in person cover all fields of engineering, science, and technology. Some questions can be answered quickly; others require extensive searching. Those that can be answered in a few minutes or ten, twenty, or even thirty minutes are usually done without charge. For the more difficult questions a charge is made. In this way those requiring considerable service pay for it and the Library finds it possible to serve more persons.

Jan 1, 1948

More than 400 academic, government, and industry representatives attended the second symposium on ash utilization and technology held in Pittsburgh, Pa., March 10-11, 1970. Sponsored by the National Coal Association, Edison electric Institute, American Public Power Association, National Ash Association, and the Bureau of Mines, the symposium featured 23 formal presentations by leading experts from Europe and the United States on all major phases of ash production, utilization, and research. Abstracts of all the papers are grouped right after this introduction, and the full symposium proceedings follow. Biographical sketches of the representatives are given in an appendix. Sponsoring organizations and their chief representatives were the National Coal Association, James R. Garvey, Bituminous Coal Research, Inc.; Edison Electric Institute, C. E. Brackett, Southern Electric Generating Co.; American Public Power Association, Howard J. Stemm, Columbus (Ohio) Electricity Division; National Ash Association, Inc., John A. Tillinghast, American Electric Power Service Corp.; and the United States Department of the Interior, Bureau of Mines, William L. Crentz.

Jan 1, 1970

By James P. Connell

The Montana Operations of the Anaconda Company constitute an integrated, though geographically separated, non-ferrous metal production complex. The mines are located at Butte and consist of one large open-pit mine, two small underground mines, a precipitation plant for both underground and pit-dump leach water, and the Weed Copper Concentrator. The smelter, located at Anaconda, Montana 25 miles to the west, processes all Butte copper shipments as well as copper materials from both Anaconda and private mines. Copper and zinc are refined at Great Falls, Montana, 165 miles to the north. Other facilities developed over the years include the Anaconda Forest Products Division, the Butte, Anaconda, and Little. Chicago Water Companies, and the Montana Hardware Company. Data processing for these operations has been performed on an IBM 360 Series, Model 30 computer, utilizing a Disc Operating System. This was replaced in September 1970 with a 360 Series, Model 40 128K unit. In addition, some data processing is also done for Anaconda Company operations located at Britannia Beach, British Columbia; Columbia Falls, Montana; Yerington, Nevada; and Twin Buttes and Tuscon, Arizona. The material under discussion in this paper will be concerned primarily with the mining operations at Butte.

Jan 1, 1970

By Orris C. Herfindahl

Every few years we are treated to a battle over trade policy when the Reciprocal Trade Agreements Act comes up for consideration. In 1962 it is especially appropriate to consider the problem of mineral import -policy and the closely related problem of general import policy, for this year's struggle is different from those of the past in two ways. First, proposals have been made which are a substantial departure from past trade agreements legislation, and second, the formation and growth of the Europe Economic is Community may have an important bearing on the kind of legislation that is adopted. But this anticipates what is to come later. My task is to examine the problem of mineral import policy, although we shall find soon enough that general trade policy must be considered in order to get an indication of what is in store for minerals.

Jan 1, 1962