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By Raymond F. Gray, Victor J. Hoffman, Richard J. Bagan, Harold L. McKinley

The first indication of tungsten in the Bishop area was the discovery of scheelite concentrations in a gold placer operation in the ( since named) Tungsten Hills in 1913. After early intermittent production, the deposits of the district were slowly discovered and developed. The Pine Creek mine, located in 1916 and under the direction of Union Carbide Corporation since 1935, became the principal producer in the district. By the end of 1965, the total production of the district had reached 3,450,932 units of WO3, 17,071,242 pounds of molybdenum, and 19,599,110 pounds of copper. The topography of the district is characterized by its extreme relief, ranging in elevation from 13,986 feet to about 4400 feet in the Mount Tom quadrangle. The present topography is the result of the uplift and erosion of the Sierra Nevada and the great subsidence of the Owens Valley with its related deposition and volcanism. The general structure of the pre-Tertiary rocks consists of a series of tightly-folded metasedimentary and metavolcanic rock remnants surrounded by exposed plutons ranging in composition from hornblende gabbro to alaskite. The metasedimentary rocks consist of low- to intermediate-grade metamorphic equivalents of fine-grained sediments deposited during the Paleozoic era in a miogeosynclinal environment. Later volcanics were deposited in a eugeosyncline. The ore bodies in the Bishop district consist of scheelite-bearing tactite formed by the pyrometasomatic replacement* of calcareous sediments along the contact with an acidic granitic intrusive. A number of the metasedimentary remnants have had tungsten deposited along their edges.

Jan 1, 1968

By Robert K. Linn

The New ldria Mining District is in the southern part of the Diablo mountains of the California Coast Range, 140 miles southeast of San Francisco. The district, noted primarily for quicksilver, also has become important recently as a producer of short-fiber chrysotile asbestos. Between 1853 and 1966, the New Idria district produced 568,092 flasks of quicksilver valued at about $55,600,000, 99 per cent of which was recovered from one deposit, the New Idria mine. In 1944, the district was ranked third in all-time production of North American quicksilver districts, and, since that time, the New Idria mine produced an additional 129,045 flasks, placing the district and the New Idria mine second in all-time production. The major structure of the region is the northwest-trending Coalinga anticline consisting of an asymmetric dome of sedimentary beds ranging in age from Jurassic to Quaternary and marked at its northwest end by an oval body of sheared serpentine 14 miles long by 4 miles wide. The serpentine core, rimmed by Franciscan sandstone of probable Jurassic age, was uplifted in stages between Jurassic and Quaternary time and was intruded along a ring of faults into beds of the Panoche Formation of upper Cretaceous age. The core of serpentine and Franciscan rocks is the locus of about 20 quicksilver mines that rim the faultbounded core and lie within the serpentine mass. The host rock of the most productive deposits is altered Panoche shale and sandstone that lies intermittently along the perimeter of the core. Deposits of the New Idria group of mines and those of a few other small mines lie along the northeast contact in the footwall of the New ldria thrust fault, and a few others occur on steep normal faults around the south and southwest. The chief ore mineral in all quicksilver mines is cinnabar, but minor amounts of metacinnabar and native mercury are found in some of the mines. Ore shoots were deposited in fracture zones and stockworks in altered Panoche shale and sandstone and in definite fissure veins in Franciscan sandstone. Rocks made highly amenable to fracturing by hydrothermal alteration were fractured extensively by late faults. The resulting fracture zones, located along the late faults and at changes in strike or dip of the hanging wall or footwall, are the principal controls of most ore shoots. The largest and richest ore shoots are those of the New Idria mine. The major ore bodies occur in fractured shale and sandstone beneath the New ldria thrust fault at its junction with major tear faults.

Jan 1, 1968

Banks' focus in using cash flow methods can differ markedly from that of equity investors. This paper attempts to explain and describe bankers' approach by: ò outlining the fundamental difference between banks' and investors' risk / return profiles. ò describing lenders' consequent use of cash flow methods in mineral valuation. areas. explaining lenders' specific treatment of key risk Fundamental to understanding banks' appraisal of mineral projects is the appreciation that lenders have a basically different risk profile and outlook from those familiar to equity investors. Lenders do not normally participate in any project upside. The economics of lending dictate that banks can only accommodate a low probability of loan default and consequently banks' principal focus in mineral ""valuation"" is ensuring an acceptably comfortable probability of debt repayment. A simple conceptual explanation of lenders' risk / return position is outlined.

Jan 1, 1994

By B. G. Kelley

The MIDREX® Direct Reduction Process was developed during the 1960s by the Midland-Ross Corporation, which had pioneered shaft furnace technology and stoichiometric gas reforming for use in processing minerals. In 1969, the first MIDREX® Direct Reduction Plant was built in Portland, OR. Since then, 49 additional modules have been sold in 18 countries. For the last ten years, over 60 percent of the world's direct reduced iron has been produced in MIDREX Plants. During the quarter century since commercialization, many technical improvements have been made, including larger shaft furnaces, in-situ reforming, greater heat recovery, improved catalysts, and hot briquetting. Midrex continues to enhance the technology in the areas of economy-of-scale, energy efficiency, alternate fuels, and raw material flexibility.

Jan 1, 1998

By Theophilus Mensah, Kwame Awuah-Offei

Engineers face significant challenges when determining what geometry provides the most profitable and safe stope for extraction. Several techniques and optimization algorithms have been developed in recent years, but most fail to find optimal solutions because they are heuristic or LP-based without efficient geometric constraints. This paper presents a two-dimensional binary linear programming (BLP) model for determining the optimal combination of blocks in a stope that maximizes the economic value of the layout of stopes for a sublevel deposit. The work draws from Queyranne and Wolsey’s (2017 & 2018) formulations of tight constraints for bounded up/down times in production planning problems to formulate novel and efficient geometric constraints along with geotechnical and grade constraints for the BLP stope layout optimization problem. Results from the model indicate that it is possible to formulate efficient shape constraints in LP-based approaches. The model used for the numerical example contained 144 valuable blocks out of 774 blocks, which translates into an economic value of $53.21M. The BLP model selected 60 valuable blocks and 13 waste blocks that met all constraints translating into a maximum economic value of $34.4M in 1.83 hours within a gap tolerance of 0.00%.

Jun 25, 2023

By R. R. Smith

The meaning of the title, "Blank Piece of Paper," refers to the need for management to take a completely fresh viewpoint to the problems facing our industry. These problems are so severe and some so new that conventional thinking may not be adequate to resolve them. Innovation has to be a part of every company's approach to the solutions, our concept is to start with a "Blank Piece of Paper.' The objective of 'this paper is to outline steps which can be taken to improve the profitability of a mining business. This is not an examination of technical solutions to individual problems, but rather recommendations for overall change in management thinking. This philosophy is based on our actual, hands-on experience in major open pit operations worldwide over the past 25 years.

Jan 1, 1987

By S. T. Kok

This paper presents a case study in West Malaysia for passive piles failure in very soft marine clay in open excavation. In this particular case, the thickness of the very soft marine clay ranges from 5 m to 7 m (16 ft to 23 ft) from the ground surface. Preliminary site investigation reported SPT ?N? value of zero for the very soft marine clay. The design was based on a deep foundation utilizing driven piles to support the superstructure. During pile cap construction, the piles were subjected to uncontrolled open excavation, inducing bending moment in the piles, resulting in some cracked and broken piles. Analyses were carried out using an existing three-dimensional finite element code with a non-linear soil model to predict the response of these piles during excavation. Finally, the predictions of pile responses during excavation were compared satisfactorily with the observed results.

Jan 1, 2009

By A A. Ndiaye, A Galli

In a companion paper on current hedging practices in the mining industry (Armstrong et al, 2009) we showed that contrary to popular belief, mining groups are still using financial derivatives to hedge against foreign exchange risk and interest rate risk, and more recently against adverse changes in energy prices, notably the oil price. This paper presents a case study on a hypothetical gold mine to illustrate the impact that hedging policies could have on its profitability by reducing the downside risk due to adverse changes in the exchange rate and increases in fuel prices. The characteristics of the hypothetical mine have been set to reproduce those of a real gold deposit, the Kisladag mine that is currently being exploited by open pit methods in Turkey. This mine was selected because its feasibility study was available to the public. Geostatistical simulations are used to reproduce the inherent uncertainty on the recoverable reserves û stochastic simulations are used to generate the variability of the other three key sources of uncertainty: the gold price, the cost of energy and the exchange rate. A simple strategy based on straightforward vanilla options (puts and calls) was developed for hedging the last two risks, on the assumption that the company sells its production at the prevailing spot price.

Jan 1, 2009

By D. R. Knowlton

IF I were a minister, and this were a sermon, and such a passage appeared in the Bible, I would choose for my text: "From whence cometh the oil for our war?" And no preacher was ever more serious than I am. You petroleum engineers recognize that the producing branch of the industry is passing through an era of plenty and inflated potentials into an era of scarcity and unmet allowables. Not too long ago the oil operators of Kansas, California, and Texas were appearing before operators' meetings and regulatory authorities asserting that these States were capable of producing at rates far in excess of what the demand at that time would absorb. Today every oil-producing area in the United States except the Texas Gulf Coast and West Texas is producing close to or in excess of its maximum efficient rate.

Jan 1, 1943

DCF Valuations are very important to individuals and companies involved in the mining industry. Such valuations are critical to investment decisions in relation to new and existing projects. In particular they provide fundamental information to shareholders in the event of a capital raising or takeover and to financiers supporting mining companies and projects. Also, DCF Valuations are often used to support asset carrying values in the financial statements of mining companies. This paper presents a Chartered Accountant's (CA's) perspective on the main issues to be considered in preparing, analysing and relying upon DCF methods in mineral valuations and provides some practical examples relating to key issues. The paper makes the important point that DCF methods involve making assumptions about future events and circumstances that inherently contain uncertainty which results in a valuation prepared on a DCF basis providing a range of values that are not perfect or accurate. In order that DCF valuations provide meaningful information the underlying methodology used and assumptions made must be consistent, sound and well supported. Credibility of those involved in preparing mineral valuations is vital and this paper supports the adoption of sound practices by all concerned.

Jan 1, 1994

By V. Herman, B. Knorr, D. Whalen

"Edge effect is a condition widely observed in High Pressure Grinding Roll (HPGR) operations that gives rise to reduced comminution at the edges of the roll surfaces. This effect is caused by a reduction in the local crushing pressure at the edges of the rolls resulting from the sliding friction between the static cheek plates and HPGR feed material. Practically, this has an impact on equipment sizing, as the edge effect leads to coarser particles reporting to downstream equipment in open-circuit operations and increased circulating load and diminished HPGR circuit capacity in closed-circuit operations.To address this, Metso's HRC™ HPGR incorporates an Arch-frame to maintain a parallel relationship between the rolls and allow for the use of a flanged roll design. We conducted a series of pilot-plant tests with a 750 mm by 400 mm HRC HPGR to compare the performance of the flanged roll design against that of a traditional cheek plate arrangement under similar operating conditions. The edge effect was found to be significantly reduced with the flanged roll design. Based on the pilot-plant results, the implications for circuit design, energy efficiency and overall plant performance in a full-scale application were investigated and discussed.IntroductionGlobal trends such as lower ore grades and rising operating costs are driving the market toward more energy-efficient mineral processing solutions, most notably in comminution circuit design. High pressure grinding rolls (HPGRs) have been recognized as an energy-efficient solution relative to more conventional circuit designs. The basic operating principle of HPGRs, in which a fairly uniform pressure is applied to a bed of material in the compression zone, lends itself to this improved energy efficiency (Morley, 2006). Studies have estimated that savings of 10-15 percent are possible when comparing an HPGR circuit with a traditional SABC circuit (Rosario and Hall, 2008). While HPGRs offer a more energy-efficient solution than tumbling mills, there is still room for improvement in many aspects of the design. Edge effect, in particular, is one such aspect that limits the effectiveness of the machines. Edge effect is the impaired performance at the edge of the rolls due to a reduction in crushing pressure (Morley, 2010; van der Meer, 2010). As described in our prior work (Knorr, Herman and Whalen, 2013), edge effect is caused by the interaction between the ore entering the crusher and the relatively static cheek plates positioned at the edges of the rolls. As the material is drawn into the crushing zone, the sliding friction between the ore and the cheek plates inhibits the ability of material to be effectively drawn into the compression zone at the edges of the rolls. This reduces the crushing force in those edge regions relative to the center of the roll where material is being drawn into the compression zone at a higher rate. In addition, the cheek plates of a traditional HPGR design are held in place by spring-loaded brackets that are adjustable to manage the clearance. This spring-loaded cheek plate design prevents full compression of the material in the edge regions of the roll as there is relief at the outer edges."

Jan 1, 2016

By B. Konda, R. Lauer, D. Camilucci, D. Gladwin

"Income based taxes are significant cost elements to be considered in evaluating investment in new mine development. This paper presents the results of comparative analysis of effective income-based tax rates for mining in the Northwest Territories (NWT), selected Canadian provinces and international jurisdictions. The study was done as background to a review of royalty regulations for the NWT. ObjectiveThis paper presents results of comparative analysis of effective mining royalty1 rates, and combined effective mining royalty and income tax rates on selected mine models for the Northwest Territories (NWT), with those for several other jurisdictions in Canada and abroad which compete with the NWT for mining investment.BackgroundThe February 27, 1995 federal budget directed the Department of Indian Affairs and Northern Development (DIAND) to proceed with a comprehensive review and amendments to northern natural resource management legislation in order “to increase revenues and ensure a fair return to the Crown.” DIAND is responsible for the administration of the Territorial Lands Act, and its regulations.The Territorial Lands Act gives the Governor-in-Council the authority to “… make regulations for the leasing of mining rights in, under or on territorial lands and the payment of royalties therefor,…”. In the NWT, the Canada Mining Regulations (CMR) provide for the disposition of mineral rights for most minerals, other than coal, petroleum and related hydrocarbons, in return for the payment of a royalty to the Crown.As part of this review of the NWT mining royalty regime, several computer mine models were developed and tax regimes in a number of jurisdictions were analyzed. Effective mining royalty rates, and the combined effective mining royalty and income tax rates were compared across the jurisdictions. The results presented in this paper are a part of the background work done in preparing a discussion paper on proposed changes to the NWT mining royalty that is expected to be released for public consultation in the very near future."

Jan 1, 1997

By Robert L. Davidoff

INTRODUCTION The impact of taxation differs substantially from state to state in a complex fashion that depends on both the physical characteristics of a mineral deposit and on the price of the mineral commodity relative to its costs of production. A comparative analysis of the tax structures of eight states (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wisconsin) showed wide variations in rates of return for any given type of mineral property, with no state having either the most burdensome or least burdensome tax structure under all circumstances. Three hypothetical mineral operations were analyzed: a producing open-pit copper property, a non-producing underground platinum operation, and a non-producing underground gold operation. None of them corresponds exactly to an existing property. Each of these property types is further defined to have ore feed grades at three different levels, leading to three potential profitability levels, referred to in this paper as "economic", "marginal" and "subeconomic". Thus the differential impact of state tax structures is measured for mineral properties of different types, as well as for different profitability levels. Montana is used as the base case. This study does not address the topic of corporate structures or tax consolidation. There are no costs assumed external to the operation of the deposit (e.g. exploration to locate additional deposits). Two types of analyses were performed for this study. The first calculates the total cumulative tax payments in each state using all applicable taxes (including U.S. federal income taxes and examines the resultant differences in discounted cash-flows rate of returns DCFROR's amoung the eight states. The second is a sensitivity analysis that examines each type of state tax separately (i.e. state income, property, and severance taxes) in order to isolate and examine the differences in tax payments that are due to the difference in rates and methods of computing specific types of taxes in each state. The results of this study serve to illustrate the complex nature of interactions among various taxes. For example, property tax is a deduction in calculating severance tax in some state. Changes in property-tax and severance-tax payments both enter into the calculation of state and federal income-tax liability. This, in turn, could change the timing and usage of tax-loss carry forward amounts and investment tax credits. Additionally, the physical characteristics of a property, the method and costs at which the mineral will be extracted, and the profitability level at which each property operates will affect tax treatment. Each mineral operation was evaluated at three different predetermined profitability levels, referred to using the terms economic, marginal and sub-economic. These three profitability levels are defined by the ore feed grades of the primary commodity that yield in constant terms, approximately an "economic" 18% DCFROR, "a marginal." 10% DCFROR, and a "sub-economic" 5% DCFROR, respectively, under the Montana tax structure. In the analyses, the mining and processing parameters for each of the three types of properties were assumed to be identical for each of the eight states. It was assumed that each operation produces at full operating capacity throughout its life. This implies the level of mineral commodity demand will support the inferred commodity price, such that each operation will be able to sell all its output. The analyses performed for this study were done using a comprehensive economic evaluation simulator that is used in the Bureau of Mines, Division of Minerals Availability MAS program to perform DCFROR analyses. All economic evaluations performed upon these data (see appendix 2) were in constant January 1981 dollars. By-product prices used for the analyses were: [Gold $425.00/troy ounce Palladium$200.00/troy ounce Silver $ 10.00/troy ounce] Typical cash-flow calculation layout is given in Appendix 3. The initial step for each evaluation is to define an "economic" profitability level scenario. An 18% DCFROR rate in Montana was considered the

Jan 1, 1985

By C. Haberfield, J. Szymakowski

Recent studies by the authors into the behaviour of jointed rock masses using direct shear testing have confirmed that joint spacing has a significant effect on rock mass strength. The rock mass failure envelopes assessed from these tests have been compared to failure envelopes obtained using the Hoek-Brown GSI criterion. Good agreement between measured and estimated GSI strength envelopes where obtained when joint spacing was considered in the assessment of GSI. Les études récentes conduites par les auteurs sur le comportement des joints rocheux employant l'essai direct de cisaillement ont confirmé que l'espacement a un effet significatif sur la force de la masse rocheuse. Les enveloppes de ruptures obtenues pour ces essais ont été comparées à l'enveloppe de rupture obtenue en utilisant le critère GSI Hoek-Brown. Une bonne corrélation a été constatée entre les enveloppes obtenues expérimentalement et les enveloppes calculées par la méthode GSI quand l'espacement des joints a été pris en considération dans l'évaluation de GSI. Kuerzliche Untersuchungen der Autoren betreffs Reaktionen von gebrochenen Felsmassen zu direkter Scherkraft, bestaetigen, dass die Abstaende von Rissen einen deutlichen Einfluss auf den Widerstand der Felsmassen hat. Die Bruchbereiche der Felsmassen die von diesen Untersuchungen entwickelt wurden, wurden verglichen mit den Bruchbereichen, die man mit der Anwendund der Hoek-Brown GSI Formulierung erhaelt. Eine gute Uebereinstimmung zwischen gemessenen und errechneten GSI Festigkeitsbereichen wurde erzielt, wenn der Abstand der Risse in der Berechnung der GSI in Betracht gezogen wurde.

Jan 1, 2003

By N Morales, G Nelis

Short-term plans must meet the long-term goals while accounting for shovel selectivity, operational space, and scheduling restrictions. There are several approaches that deal with these issues to deliver a feasible short-term schedule. This paper compares two approaches based on mathematical programming to address the short-term mining cut definition and scheduling in an integrated way. They work by scheduling extraction to comply with long-term production goals, but they differ in how mining cuts are modelled. The first approach schedules Selective Mining Units (SMUs) but aggregates them around predefined locations. The second approach does not work on SMUs; it decides directly what mining cuts are to be used from a pre-defined set of shapes. It assigns a destination and schedules the extraction for the selected mining cuts. We applied both approaches in a real case study to compare their results in terms of profit, mining cut design, expertise needed, profit, and optimisation performance.

Sep 1, 2021

By C. P. Miller

In a study of the usefulness of geochemical and biogeochemical prospecting for nickel made about two years ago, approximately ten localities, representing several different types of nickel occurrences were sample, and about 1500 samples of plant and soil were collected. This report will briefly cover the data and results for two areas, and s summary of guides for prospecting.

Jan 1, 1959

By D. D. Ndenguma

This investigation compares the results from an experimental and numerical study of air flow in a scaled-down underground coal mine model. This was done in order to determine if numerical analysis can be relied upon when searching for ventilation solutions to control high concentration of coal dust and methane gas in underground coal mines. Steady state analyses were used to identify flow patterns and recirculation regions within the mining section while transient state analyses were used to determine the time taken to extract the initial air from the model. The agreement between the experimental and numerical results indicates that numerical modelling is useful in this regard. The study went further to devise a method of determining the optimum position of the jet fan that is responsible for mine-gas dilution at different stages of mining.

Jan 1, 2014

By A. Azis

The problem of expressing a nation's mineral resources in terms that convey a sense of economic reality poses a great challenge to those charged with keeping government policymakers informed. A model is presented that can be used to simulate and examine the effects of, for instance, differences in levels of output, transportation costs, mining costs or selling prices on the exploitability and expected order of development of new mineral deposits. The model in its present form can be used to screen, as a first cut, the economic from uneconomic deposits in cases where little or nothing is known about them in detail. To date, this has generally been done - reluctantly - by subjective judgments. This model provides an improvement on the "informed opinion" approach, as it forces those who use the model to be both systematic and explicit in their assumptions. Moreover, the procedure is repeat- able and each step can be defended and justified. Implications can be examined of the uncertainty associated with many of the variables. The model is entirely too general to be of use for actual feasibility studies. It is not useful, in the case of speculative or little-known deposits, to provide a model that has an input format more detailed than the information that is likely to be available. Should the user see a need for it, the model can easily be expanded to allow for the input of more detail or more variables.

Jan 1, 1977

By J. A. Irvine

In 1972, a cooperative program to map and estimate the quantity of Tertiary coal resources in southern Saskatchewan was initiated by the federal and Saskatchewan governments. More than 700 exploratory boreholes were drilled over a two-year period, and data were obtained from other organization s on an additional 1500 boreholes in the area. Stratigraphic data and data on each coal seam penetrated in the boreholes, along with technical and location data for each borehole, were stored in a computer data base for convenience of retrieval, modification and manipulation. Programs and program packages were developed or adapted to: (1) select borehole information defined by variable retrieval parameters from the data base; (2) calculate derived information , such as overburden ratios. cumulative net coal thicknesses , mean weighted center of gravity of coal seams in each borehole, etc., from the selected data ; (3) produce posting maps of either selected data or calculated information in various combinations at variable scales on a plotter or CRT display; (4) produce contoured structure, isopach or ratio maps , and perspective diagrams as appropriate , utilizing plotter or CRT display; (5) calculate and categorize quantities of coal in place within user- defined "mineability-economic-reliability" limits. The emphasis in computer utilization was placed on geological credibility of the results and ease of operation by relatively untrained geological personnel, resulting in extensive use of interactive methods. The single most important benefit derived from using computer-assisted procedures is the ability to produce new maps and quantity estimates rapidly and inexpensively as a result of availability of new data or/and changes in external criteria which impose economic or mineability constraints.

Jan 1, 1978

By J. E. Lawver, B. J. Clingan, R. E. Snow

Response surface methodology is a well-known and powerful technique for determining optimum conditions in flotation systems. One disadvantage is the onerous task of the numerical calculations and curve plotting. This paper describes a system in which the investigator simply selects the range of several flotation variables after which the design of the experiment, data analysis, generation of response surface equations, and response surface plots are automatically carried out using a digital computer and a computer-driven curve plotter. Several typical response surfaces of important variables in phosphate flotation are presented as examples.

Jan 1, 1980