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By P Guj, J A. Bell

The valuation of early-stage exploration projects requires a valuer to take into account a large number of uncertain value drivers, the interplay among which may be non-linear. This paper examines some of the key value drivers including geology, target metrics, project area and maturity, the market and the psychology behind the decision-making process. The commonly accepted valuation methods and their underlying logic are outlined, including a view on why they evolved, what value drivers they attempt to address and their potential shortcomings. These methods include the multiple of exploration expenditure, geoscience rating, expected values and market based methods. The potential future valuation methods of replacement values and neural networks are also introduced along with how to minimise heuristic bias and error within the market-based approach.CITATION:Bell, J A and Guj, P, 2012. Exploration value drivers and methodologies, in Proceedings Project Evaluation 2012 , pp 17-28 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By John A. Mathews

RESEARCH in the steel industry, as in other lines of manufacturing, has for its principal purpose the increasing of profits. That is what manufacturing companies are for, and all departments of the organization must be so coordinated as to lead to profitable operation. To divide a payroll into productive and non-productive labor is misleading. Productive labor, in fact, is necessary labor, and non- productive labor is the labor we can get along without. One might as well say that the steering wheel is not a part of an automobile as to say that the directing minds of an industry are non-productive. Legitimate manufacturing profits in a steel company or any other company are the reward that the public pays for service rendered or risk taken. The desire for profits is the impelling motive that leads investors .to take risks and build up industries that give employment to others. Every department of a company, be it executive, manufacturing, financial, sales, or research, must contribute to the one end which brings success-profits.

Jan 1, 1921

By Alberto Barreda

A medida que la extracción del mineral progresa, la necesidad de madera en la construcción de edificios e instalaciones de la mina, también se incrementa. Por ello, el objetivo del presente trabajo señala la importancia de la madera como factor de producción en la industría minera, al tiempo que describe la silvicultura como técnica agronómica de ayuda en dicha manufactura. Revisando los cuadros estadísticos realizados en el Perú durante los años 1949- 1955, muestran que de cada extracción global de minerales (metálicos y carbón), obtenemos el promedio de 0,9 pies cúbicos de madera por tonelada de mineral extraído, con un equivalente de 5 pies tablares por pie cúbico, como factor de conversión. El problema surge cuando al intentar desplazar la venta de madera importada, se agotan las fuentes de desabastecimiento local, generando una crisis de reservas en el mercado libre. En consecuencia, se propone el establecimiento de plantaciones forestales en áreas localizadas y dentro del plazo de 10 a 12 años, las cuales prolongarán la conservación de la madera nacional, mejorarán la calidad de la misma y a su vez disminuirán los precios de venta.

Jul 20, 1956

By J. R. Thoenen

"The curtailment of imports of foreign potash during the World War directed attention to the necessity of establishing a domestic source of potash for fertilizer, and considerable study has been given to the subject by Government bureaus, research organizations, and private individuals. These studies have covered all known sources of potash, and among them the extensive greensand deposits of New Jersey in which the potash content is found in the mineral glauconite have been investigated.Several hundred patents have been obtained covering processes for the extraction of potash from siliceous minerals, but up to the present time none have proved successful on a large commercial scale.When the investigation of the potash deposits of Texas was started by the Federal Government, the laboratory study of the drill cores was assigned to the Nonmetallic Minerals Experiment Station at New Brunswick, New Jersey, with the object of ascertaining a possible commercial method of utilization.The purpose of this preliminary study was to investigate existing literature and previous investigations to ascertain the extent and availability of the deposits, the extent of commercial success so far attained in potash extraction, the most promising known methods and by-products obtained from them, probable markets, and possibility of competition with foreign potash, and by a study of these data to determine whether further chemical engineering analysis and laboratory investigation were warranted.As the study advanced it became evident that adequate reserves of green-sand were available for many years supply. and that whereas many processes had been patented few had been tried commercially. In collaboration with former private and Government investigators these patents were first divided into two"

Feb 1, 1929

By J. E. Sepulveda, R. Morrow

"In full scale mineral grinding operations, the steel balls normally utilized as auxiliary grinding media get to be consumed at different specific rates, as determined by 3 basic mechanisms: abrasion/corrosion (wear), impact ball breakage and impact surface spalling, the latter relating to the removal of rather small pieces of steel coming off the exposed surface of the balls due to repetitive impact with other balls in the charge or the surrounding mill liners. In conventional ball milling applications, the clearly predominant mechanism is gradual wear by abrasion/corrosion. In the case of SAG mills, where the make-up balls may be as large as 6”f diameter, breakage and spalling mechanisms are significant contributors to total ball consumption, although not to the extent of overriding wear mechanisms.Ball wear has been well characterized by the Linear Wear Theory, as presented at the last CMP 2014. Impact breakage has been customarily monitored, at the ball manufacturing site, via Drop Ball Tests (DBT) consisting of repeatedly dropping balls from a standard height and accounting for the number of broken balls and the weight loss (spalling) of the remaining unbroken balls. When properly conducted, DBT’s should provide meaningful indications of the breakage and spalling resistance of large diameter balls. The current publication is focused on the interpretation and projection of DBT results to full industrial scale, taking into account all 3 mechanisms of grinding media consumption in SAG mills.INTRODUCTIONA thorough, quantitative understanding of the independent contribution of all active grinding media consumption mechanisms is of the highest practical relevance, particularly in semiautogenous (SAG) milling operations where ball breakage and spalling can not be ignored or neglected, as it has been normally acceptable for conventional ball milling processes. The high severity impact conditions currently imposed in typical SAG mill environments create serious challenges to the manufacturers and suppliers of large diameter (5”–6”) SAG balls, whose products must be capable of surviving such harsh operational conditions with minimum breakage or spalling."

Jan 1, 2015

By Harlan A. Walker

This paper on the mines of El Potosi Mining Co. is one of a series being prepared by the United States Bureau of Mines on mining practices, methods, and costs in the various mining districts of North America. Grateful acknowledgment is made of the helpful suggestions and criticisms offered by the management, together with the assistance of the mining staff in preparing maps and drawings and of C. L. Thornburg, mine geologist, in preparing the section on geology.

Jan 1, 1934

In presenting this paper the author has in view a twofold purpose. In the first place, it is intended to set forth for the benefit of practical mining men some account of the principles underlying the design of tungsten carbide rock bits in the hope that a knowledge of these principles will assist in the successful application of the bits to mine and quarry drilling. Secondly, by evoking discussion, and even controversy, it is hoped that manufacturers and users of these rock bits will be encouraged to contribute to the general knowledge of a subject which to date has been rather lacking in published literature. The author well appreciates that many of the conclusions drawn in this paper are highly controversial, but if the only result is to call forth contradictory testimony from other workers in this field, at least one of his purposes will have been achieved.An attempt will first be made to set forth and examine those characteristics which go to make up an efficient rock bit, and the main factors affecting these characteristics will be discussed. In a paper of this general nature, consideration of any particular aspect must necessarily be rather brief, and there is little opportunity for detailed presentation of test procedures and data. Thus, it has been found advisable' to confine discussion of some minor points to a simple statement of fact. However, an attempt has been made to support all major conclusions by reference...

Jan 1, 1950

By S. F. Burks

"This paper develops themes explained at two SAIMM platinum conferences. Optimization techniques can be used to significantly increase the value of mining businesses by enabling better long-term planning decisions. Open pit and underground mine design, mine scheduling, cut-off grade and blending, stockpiling, and the linking of these to flexible elements of the metallurgical recovery processes are all evaluated together. Transport or sale of intermediate products and the requirements of the product metal markets can also be considered. Experience shows that net present value (NPV) can be increased significantly, usually even before the expenditure of significant amounts of project capital. Recent studies of NPV have aimed to simultaneously evaluate the impact of the optimized financial solution on the non-financial features of a project or operation.The case study presented comprised a commercially orientated review of the prefeasibility study designs and cost estimates of a platinum group metal (PGM) project in South Africa, followed by value chain optimization and sustainability studies of the project carried out simultaneously to identify potential value uplifts to be gained and guide the owners’ team going forward into the feasibility study phase. Some of the major aspects of the project that were found to have significant potential to add value included enhancement of the business model by the application of activitybased costing and theory of constraints, focus on the highest net value portions of the orebody in the early years of production, enhanced and optimized scheduling of the underground mining operation, application of dynamic grind and percentage mass recovery from ore to flotation concentrate (also known as percentage mass pull) to optimize revenue, application of elevated cut-off grades early in the life of mine, matching of the mining and processing capacity, expansion of the operation subject to capital availability, and installation of downstream processing facilities subject to regional third-party capacities.The investigation of non-financial project features focused on demonstrating that a financially optimized solution could also have a number of other benefits. These are mentioned briefly in the paper, which aims to present the status of the project at an early stage of its development."

Jan 1, 2016

"Investment in diamond exploration has been declining over the past decade, in spite of positive long-term industry fundamentals and a growing interest in diamonds as an investment category. The lack of new significant discoveries in recent years has eroded investor confidence, yet no new discoveries are possible without investment in exploration. Junior ‘mine finders’ have been the hardest hit. Their agility, tenacity, and appetite for risk are not sufficient to attract the funding required, even at the greenfield stage. Developing new discoveries into mineral resources can be crippling without solid financial support. Junior incubators could play a crucial role, especially at the project evaluation stage – but where are they? Alternatives to traditional funding mechanisms have become available, many still untested in the junior diamond exploration space. Valuable lessons can be drawn from the past and used to inform emerging new strategies. IntroductionDiamonds are the ultimate expression of love. Their ancient and timeless allure continues to influence consumer emotions and behaviours across continents, cultures and age groups. Analysts are predicting a sustained supplydemand shortfall in the years ahead which will trend diamond prices generally upwards. With positive long-term industry fundamentals, one cannot help but wonder why funding for diamond exploration and development projects is so scarce.Investment in exploration across commodities – including diamonds – has been declining for a number of years, reaching a historic eleven-year low early in 2017. The lack of major diamond discoveries in recent years has done little to strengthen the case for investing in diamond projects, yet no new discoveries can be made without investment in exploration.Global estimates of known carats in the ground stand currently at 2.5 billion carats, which equates to around 18 years of production at current levels of 140 million carats (mct) per annum. Sustainable replenishment of depleting diamond resources is possible only through the development of new discoveries. This is what junior explorers are best at – but they need investors to fund their evaluation activities from early in the project development continuum."

Feb 1, 2019

By J Fraser, M Scoble

Within the past decade, incidents of mining–community conflicts have grown dramatically and represent one aspect of a phenomenon known as social risk. Research published in 2014 indicates that a lack of social acceptance is now a leading and costly cause of delays for mining projects.The rise of social risk, complemented by the need to earn the trust of an increasing number of stakeholders so that mining projects can be developed effectively, is problematic for the industry. Conflicts are occurring in situations where companies are fully compliant with regulatory and legal requirements, despite initiatives by mining companies to earn social acceptance and despite the proliferation of tools to support corporate social responsibility. Intensifying the impact of social risk is the fact that it has increased during a time in the global mining sector when companies have had to grapple with declining commodity prices, increasing capital costs and debt levels and the challenges of mining lower-grade deposits.This paper will explore a hypothesis that in today’s interconnected society, social risk in the mining sector constitutes a legitimate business risk that must be managed strategically. The reality facing mining companies is that information, once considered confidential, now travels quickly on social networks and via a growing number of groups and individuals that have earned a legitimate right to be classified as stakeholders in projects that affect their communities. To be successful, it is suggested that companies will benefit from increasing internal collaboration and providing training to equip teams to mitigate social risk to mining projects and protect reputation capital. The paper is based upon PhD research being undertaken to assess the points of intersection between social risk and social responsibility during the construction stage of greenfield mining projects.CITATION:Fraser, J and Scoble, M, 2015. Mining–community conflicts – can the future mining sector transform social responsibility?, in Proceedings Third International Future Mining Conference, pp 159–168 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 4, 2015

By Fathi Habashi

While it is commonly known that the precious metals and to some extent copper occur in the native state, it is less known that mercury, iron, nickel, and cobalt do occur also in the native state; the last three (Fe, Ni, and Co) usually occur together in form of an alloy. The particle size varies greatly from less than 10 microns (gold and mercury) to about 400 tons boulders (copper).

Jan 1, 1993

By Servant S

In the mine of this study, cemented hydraulic backfill is placed under the form of a slurry at a percentage of solid by weight varying from 50 to 65 per cent. This slurry settles and cures in the stope. During this process an important amount of water must be drained from the scope. Field observations in the case studied here show that the geometry of the drains system has a significant impact on the drainage of the stopes. The mode of filling produces a backfill showing an evident stratification typical of a sedimentation process. In situ observations on this material show that this stratification translates into a very strong heterogeneity in the physical properties of the cemented backfill. This heterogeneity should affect the hydraulic conductivity of the backfill in the scope. In order to study this aspect, finite element simulations were performed. This paper presents the results of these simulations, where the impact of this stratification on hydraulic conductivity is related to the performance of the backfill drainage system for various geometry. This preliminary study is aimed at providing a better understanding of the role of the drains in the dewatering process of the backfilled stope in the case of this Mine.

Jan 1, 1998

By E. D. Gardner

This paper is the third of a series of three on placer mining in the western United States. The first paper4 discusses the history of placer mining in the Western States and the production of placer gold, geology of placer deposits, location of placer claims on public lands, sampling and estimation of gold placers, and classification of placer-mining methods, together with hand-shoveling and ground-sluicing. The second papers deals with hydraulicking, sluice boxes and riffles, recovery of gold and platinum from placer concentrates, treatment of amalgam, and marketing of placer gold. The discussion of sluice boxes and subsequent subjects in the second paper applies to all forms of placer mining. The present paper treats of dredging and other forms of mechanical handling of placer gravels, and drift mining.

Jan 1, 1934

By Paul L. Michael

This report presents a discussion of perforance parameters for electronic or active hearing protectors that will meet the needs of underground coal miners. This information is incorporated into a proposed set of specifications that can be used to judge the suitability of a particular electronic hearing protector for the coal mine application. Acoustic and electrical tests were performed on a developmental model of an electronic hearing protector built by the U. S. Bureau of Mines. This model showed only a slight reduction in speech intelligibility which was traced to poorly matched components and in particular to the transducers. Tests of alternative components showed the Knowles BL-1671 microphone to be suitable for this application because of its performance and extremely small size. The Roan-well H-143/AIC earphone was found to have a good frequency response but has the disadvantage of being rather bulky which causes a slight degradation of a low frequency attenuation of the hearing protector. A satisfactory installation of these components in a hearing protector muff was demonstrated and tested. Results of tests of several methods of controlling the sound level under the hearing protector muff showed that a simple diode clipper circuit can be used with only a negligible loss in speech intelligibility for normal-hearing listeners. A commercially available active hearing protector, the British-built ACOS A-9000/2 was examined. This hearing protector provides sound level limiting through a saturating amplifier. Preliminary tests have shown that the performance characteristics of this commercial unit meet many of the proposed specifications so further testing and evaluation should be performed to determine its suitability for use 1n underground coal mines. The recommended test of intelligibility for electronic hearing protectors and other communication systems as used in a coal mine setting is the Modified Rhyme Test (MRT) developed by House et al. in 1965. The suitability and method of administering this test are discussed.

Jan 1, 1976

By Lawrence H. Roth

Past failures of coal refuse embankments have resulted in more intensified efforts in inspections of coal refuse sites. Inspections, however, are mainly qualitative and time consuming. In August 1975 CH2M HILL was awarded a contract to identify, develop, and test a rapid system for monitoring coal refuse embankments to aid in inspections. The rapid monitoring system developed uses convergent and vertical photography from conventional fixed-wing aircraft. The system was tested on an active landslide and on two coal refuse facilities using both black and white and color infrared film. Field tests showed the system was capable of accurate measurement while providing qualitative data through photointerpretation. The accuracy of the system allows it to be used to monitor coal refuse embankments, tailings dams, major earth dams, and natural slopes. Bibliographies of literature reviews in the area of past coal refuse embankment failures, monitoring instruments and methods, and photogrammetry are included.

Jan 1, 1977

The Bureau of Mines is the engineering arm of the Government for mineral resources. Its mission is to carry out laboratory and field studies that will assure the wise and effective development and use of our Nation's minerals, fuels, and underground domain in order to preserve the security and enhance the welfare of our people. Specifically, studies are directed to the means by which current and emerging demands may be met, the real cost of such achievements, and the assessment of related social and economic factors. Ways are sought to fulfill our material needs in a manner that minimizes occupational hazards to workers in the industry, reduces waste, and ensures that mineral raw materials are supplied and mineral-based products are used and are disposed of efficiently, without objectionable social and environmental costs. The headquarters of the Bureau of Mines is located in Washington, D.C. The Bureau's research and development program, however, is conducted at 19 research centers and laboratories located throughout the United States.

Jan 1, 1971

By Peter Grandone

"INTRODUCTION The injection of water into partly depleted-oil-bearing formations as a means of supplying additional energy to flow oil wells now is recognized by the petroleum industry as an effective method of increasing the recovery of oil. The benefits to be derived from water-flooding oil sands were discovered accidentally more than 4o years ago, when oil producers in the Pennsylvania and western New York fields observed suustantial increases, in oil-production rates when water leaked past corroded casings of old wells into producing sands. This observation prompted some operators purposely to perforate or slit the casings opposite the producing formation in some of their wells to permit water to enter the formation. However, as many operators viewed the practice with skepticism and considered it to be in violation of oil-conservation principles,- systematic water-flooding was not initiated until the Pennsylvania legislature, in 1921, enacted a law authorizing water-flooding of oil sands in that State.Although water-flooding has been practiced in a haphazard manner for more than 25 years in Chautauqua and Montgomery Counties, Kansas, planned or systematic water-flooding in that State had its inception in 1935, when the legislature, following the example of Pennsylvania, also passed a lava/ authorizing water-flooding. The early operations and, to some extent, those still, practiced in the Chautauqua-Montgomery area consisted in raising or perforating the casing to allow water from upper strata to gravitate into underlying oil-producing formations. The extent to which this type of water-flooding affected petroleum production in the old stripper area of eastern Kansas is not known, but it is known to have increased oil production ap¬preciably from many leases.Following enactment of the law permitting water-flooding in Kansas, three operators inaugurated, in that same year, three organized flooding projects in three different counties of the southeastern part of the State. The first organized project on record was that of the York State Oil Co. in the Seeley pool, Greenwood County. On this project, the injection was started on May 15, 1935, into the Bartlesville sandstone at a top depth of 1940 feet."

Jul 1, 1944

By Steinar L. Ellefmo, Thomas Kuhn

The deep-sea ocean floor offers a great potential for mineral resources. The evaluation of these resources is both time consuming and costly and require as any resource evaluation data; geodata. The collection of hard data, physical samples, is of course preferred because the associated uncertainty is low. However, the collection of soft data or image derived data can offer a valuable supplement. In this paper image derived nodule uncertain abundance data from an area in the Pacific is utilized. Implementing these uncertain data improves the estimation when the quality of the estimation is measured using the classification indicators like the kriging standard deviation, the relative prediction error, the slope of regression and the weight of the mean. It is concluded that uncertain data is better than no data. INTRODUCTION The deep-sea offers vast mineral resources (Cathles (2011), Hannington et al. (2011), Hannington (2013), Singer (2014)). A mineral resource can according to increasing geological confidence be classified as an inferred, an indicated or a measured resource. The classification is performed by a competent- or qualified person and is dependent on the amount, quality and characteristic of available geodata. The competent person must have at least five years of experience relevant to both the style of mineralisation, the type of deposit and the performed task. Typical examples of a “task” is for example resource estimation and classification or planning- and execution of exploration activities and presentations of the results. The competent person must also be a member or a fellow of a professional organisation and thereby be bound by reporting code (-s) that defines minimum standards, recommendations and guidelines for public reporting.

Jan 1, 2018

The latest outcome of science is that aII bodies are composed of vibrating atoms or molecules. In almost all mineral bodies when changing from the gaseous or liquid condition to the solid, if the vibrating molecules are allowed free play, they arrange themselves in a symmetrical manner, and at a definite angle to each other: This angle varies with each system of crystallization. In a great many bodies this process may be brought about artificially, and the growth of the crystal watched. The most common method is to dissolve some substance in water or some other liquid, on slowly evaporating the liquid, the substance dissolved will solidify and the molecules will arrange themselves in their particular crystalline form.The element carbon crystallizes in two forms; as graphite in the form of a short six-sided prism', and in the diamond generally as the octohedron in the cubical system of crystallization. Orystalline bodies, as a rule, have plain faces but what is remarkable in the diamond is that in a great many cases the faces are rounded. Its great beauty as a gem when cut, and the high artificial value placed upon it by fashion, as well as its value as a cutting and boring instrument-it being the hardest body in nature-has caused many attempts to be made to form it artificially. These attempts have met with fair success as a scientific experiment, but as a commercial speculation they have been a complete failure. The most noted of these experIments was carried out by Mr. Hannay, of Glasgow.Paraffin spirit with lithium was submitted td prolonged heating in strong wrought-iron tubes securely welded. In most of the experiments the tubes exploded; but in a few cases the experiments were successful, and on cutting open the tubes small crystals of diamonds were found embedded in a black mass.Despretz produced minute diamonds under the influence of a powerful electric current from coal.

By Koehler Stout

Previous work done by the authors of this report indicates that hydraulically-placed backfill can be strengthened several fold by various placement methods. Sunshine mill tailings were tested by these placement methods and strength increases up to thirty times were achieved over the ordinary placement methods. A computer simulation study of the test stope in the Sunshine Mine showed that a high-modulus fill absorbs up to 27% of normal stresses versus 7% for "normal" fill while reducing maximum convergence 28% versus 8% for "normal" fill. Although high-modulus fill was not placed in the test stope during this contract, various instrumentation was purchased, designed and built to record necessary data in the stope. Stress gauges were placed in the pillars and recorded data corresponded quite closely with theoretical projections.

Jan 1, 1983