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By D. Bois, P. Keating, J. Lemieux, M. A. Vallée, M. Allard, R. S. Smith, L. Z. Cheng, M. Chouteau, D. K. Fountain

"Abstract - MEGATEMII airborne electromagnetic data collected over the Iso and New Insco massive sulfide deposits have been modeled using three modeling packages. The EMQ package is a quick inversion tool which indicates that the Iso body is a dipping, plate-like body. The New Insco body is inferred to have a geometry somewhere between a dipping plate and a sphere. The Maxwell package was used to refine the properties of the plate-like body at Iso. The EMIGMA package was able to identify which parts of the New Insco orebody were more conductive. It was observed that the most conductive parts correspond to copper-rich zones and the next most conductive to pyrite-rich zones. The EMIGMA package was also used to show that a thick-prism model might be more appropriate for the New Insco orebody. Gravity modeling constrained by the known geology was successful in identifying the denser sulfide zones. The densest zones appear to be pyrite rich. Magnetic modeling identified diabase dikes. Over New Insco, a small magnetic anomaly was attributed to pyrrhotite-rich sulfides. There was only a weak magnetic anomaly over the Iso body, consistent with the nonmagnetic sulfides logged in the holes drilled at that location. Sommaire - Les données MEGATEMII recueillies au-dessus des dépôts d’Iso et de New Insco ont été interprétées en utilisant trois outils de modélisation différents. L’outil EMQ a été utilisé comme un outil d’inversion rapide suggérant que le dépôt Iso peut être considéré comme une plaque inclinée, et que le dépôt de New Insco se situe quelque part entre une plaque et une sphère. L’outil Maxwell a été utilisé pour raffiner les propriétés du dépôt Iso. L’outil EMIGMA nous a permis d’identifier les différences de conductivité à l’intérieur du dépôt Iso. Il a été observé que la partie la plus conductrice correspond à la zone riche en cuivre, suivie par la zone riche en pyrite. L’outil EMIGMA a aussi permis de montrer qu’un modèle de prisme épais pourrait être plus approprié pour décrire le dépôt New Insco. La modélisation des données gravimétriques, contrainte par la géologie connue, définit bien la zone de sulfures massifs. La zone de pyrite semble être la plus dense. La modélisation des données magnétiques identifie bien les dykes de diabase. Au-dessus du dépôt New Insco, on observe une faible anomalie magnétique correspondant aux sulfures non magnétiques observés dans les carottes de forages à cet endroit."

Jan 1, 2006

By A. Haldar

The major problem encountered in the casting of hypereutectic Al-Si alloys is the stoppage of flow below the rigidity level of solid fraction. In this study, the flow stoppage mechanism was studied using three Al-Si alloys with 14%, 18% and 22% silicon. The horizontal foam patterns used were 12.50 mm (0.50 inch) wide with two section thicknesses 12.50 mm (0.50 inch) and 6.25 mm (0.25 inch) with a common sprue. The primary silicon distribution along the length of the casting was studied to determine the mechanism of flow stoppage. It was found that the surface of the flow tip of Al-14%Si alloy was smooth with a few undulations. As the silicon level increased, undulations at the flow tip increased. The number and size of undulations were maximum for the Al-22%Si alloy. Microstructural analysis using optical image analyzer revealed that the flow tip consisted mainly of eutectic silicon in the aluminum matrix and a few primary silicon crystals (PSC). The PSC were in the interlocked condition few centimeters behind the flow tip. It was also found that the gap between the flow tip and the PSC concentrated area increased with an increase in silicon level. Phase characterization was done with SEM-EDX to identify the precipitating phases.

Jan 1, 2007

By S. A. R. Keneti

Predicting the geomechanical response of the shale gas material during hydraulic fracturing operation in the field needs better understanding of their geomechanical behaviour under laboratory testing. Anisotropy is considered as a critical factor during investigation and analysis of deviated boreholes, borehole stability, stress-strain and strength behaviour, generation and propagation of fracture and fluid flow. In this study, compressive elastic modulus (Ec) of the Montney shale has been investigated in two perpendicular directions: unconfined compressive strengths test was conducted on the Montney sample to measure its Ec in the vertical direction. This value then was compared to the Ec value in the horizontal plane (i.e. foliation plane) which was previously measured throughout a Brazilian test by Keneti and Wong (2011). From the results, the representative values of Ec in the vertical and in the horizontal directions were found as 25 GPa and 40 GPa, respectively. Computer tomography technique was also employed for the experimental data interpretation.

Jun 1, 2012

By Steve T. Laflin

Since the beginning of the nuclear era, there has never been a commercial solution for the large quantities of depleted uranium hexafluoride generated from uranium enrichment. In the United States alone, there is already in excess of 1.6 billion pounds of DUF6 currently stored. INIS is constructing a commercial uranium processing and fluorine extraction facility. The INIS facility will convert depleted uranium hexafluoride and use it as feed material for the patented Fluorine Extraction Process to produce high purity fluoride gases and anhydrous hydrofluoric acid. The project will provide an environmentally friendly and commercially viable solution for DUF6 tails management.

Aug 1, 2010

By S. Radacina Rusu

The satellite-based global positioning system (GPS) has significantly changed the way site operations are carried out in surface mining. The GPS has impacted safety, productivity, fleet efficiency, and maintenance practices. However, no comparable global localization system exists for underground mines. This paper discusses recent work in the application of ideas from the mobile robotics research community to the problem of real-time vehicle positioning in underground drift networks. Related previous work recently focused on the creation of globally consistent 2D maps of underground environments that possess sufficient detail to be used for underground localization. Our current work entails the development of a GPS-like system for mobile mining equipment, with results given from both laboratory and field experiments.

May 1, 2011

By G. F. Trainor

The complex ore body at CNRL?s Horizon mine presents some unique challenges in managing ore and waste delivery. With 25m x 25m ore blocks shovels often take bucket loads from multiple blocks to fill one truck load. With CNRL monitoring 22 different qualities per material a precise calculation of the blended quality of ore on the back of each individual truck is essential to meet the daily blend requirements at the plant. Additionally, one of these qualities must be closely monitored and controlled at a singular level as delivery of certain grade and quantities can cause serious disruptions at the plant. The waste material also requires special handling and delivery for its use in dyke construction for tailings impoundment. Shale materials used in the construction contain high levels of saline that must be contained to prevent seepage into ground water. This paper will discuss how the use of Wenco?s survey-grade GNSS system on shovels, its dispatching algorithm, and fleet management applications give CNRL the ability and confidence to control and report on these three issues.

May 1, 2013

By Vladislava A. Ignatkina, Victor D. Samyguin

"Within the limits of two-phase approach, considering mass transfer with pulp and air streams was shown that each bubble appears to be an elementary carrier, transporting particles from the collection zone into the froth. The kinetics of flotation was described by the exponential equation in which first order flotation speed constant has to be replaced with two-phased coefficient of a mass transfer. Criteria of selectivity of two ore fractions separation, based on determination of optimum time at which maximum difference between extractions and components content in separated fractions were offered. An interrelation between optimum time of pulp residence in a flowing chamber of a flotation machine, time of bubbles mineralization and an optimum airflow has been ascertained. Cumulative criterion of mass transfer efficiency of flotation process has been ascertained to be a form of the spectrum and its position on axis of three-phase coefficient of a mass transfer.INTRODUCTIONRegularities of a mass transfer of three bearing streams: pulp stream, air stream and froth stream underlie theory of mineral complexes flotation (Samygin, Filippov, & Shekhirev, 2003)However, only description of mass transfer in pulp stream by means of kinetic equations that were simple and convenient for practical use, has gained a full distribution (Tykhonov, 2009;Rubinstein&Filippov, 1980; Saleh, 2010).Within the limits of a single-phase approach, the role of gas stream in increase of speed and selectivity of flotation, was associated with an improvement of hydrodynamic mode. An influence of particles and bubbles sizes (Rubinstein&Filippov, 1980; Rubinstein&Samygin, 1998, Samygin et al., 2003; Dai, Fornasiero,& Ralston, 2000), of pulpflow and airflow (Finch& Dobby, 1990) and turbulent energy intensity (Shubert, 1979; Massinaei, 2007) on the flotation process has been studied. It was stated that flotation selectivity is increasing by means of gradual airflow increase from first to final cameras of the impeller flotation machine (Aslan&Boz,2010; Finch, 2011) and by means of using a multizone flotation machine (Samyguin, Filippov, Matinin, Lekhatinov, &Tertyshnikov, 2013)."

Jan 1, 2016

By J. Warner, K. A. Hughes, P. E. R. Blanchard, J. Esslifie-Dughan, J. W. Reid

Tailings management plays an important role in reducing the environmental impact of Orano Canada’s uranium mining operations in Northern Saskatchewan. Uranium ores mined from Northern Saskatchewan are often associated with large amounts (10-20 wt%) of other harmful elements, such as arsenic and nickel. The JEB Tailings Management Facility (TMF) located at McClean Lake, Saskatchewan is designed to prevent potentially harmful water-soluble elements, particularly arsenic, from contaminating the surrounding environment by promoting the formation of water-insoluble minerals. It is therefore important to determine which arsenic-containing mineral species are present in the TMF and how they evolve over time. Researchers at the Canadian Light Source (Saskatoon, Saskatchewan) were successful in identifying the arsenic mineral species present in tailings samples collected from the TMF in 2013 using X-ray absorption near-edge structure (XANES) spectroscopy. XANES analysis verified that the majority of arsenic species in the TMF existed as amorphous and crystalline ferric arsenates with minor amounts of arsenite and arsenide species. Herein, XANES is again used to analyze a new set of tailings samples collected from the TMF in 2018, specifically focusing on the difference in the distribution of arsenic species in old and new tailings.

Jan 1, 2020

By Troy Boisjoli, Sean Hillacre, Matt Batty

Discovered in 2014, the Arrow Uranium Deposit has undergone rapid development through successive drilling programs informed by geostatistical drill hole spacing studies. An independent third-party geostatistical drill hole spacing study was completed by Clayton V. Deutsch Consultants Inc. in 2017, evaluating the uncertainty of thickness, grade, density, and areal limit of the Arrow Deposit to determine a drill hole spacing suitable for Indicated Mineral Resources. Indicated spacing was defined to be 24 to 32 metres (“m”) to be within 15% of predicted for a nominal quarterly production volume with a probabilistic tolerance between 75 and 90%. The study not only defined the Indicated Mineral Resource resultant from the 2016 drill program, but also provided drill hole targeting criteria for subsequent drill programs aiming to convert Inferred to Indicated Mineral Resources. A subsequent geostatistical drill hole spacing study on the Arrow Deposit was completed by Clayton V. Deutsch with Resource Modeling Solutions in December 2018 to define Measured Mineral Resource spacing in support of the 2019 drill campaign. The study resulted in a drill hole spacing of 9 to 17 m to be within 15% of predicted for monthly and quarterly production volumes using an accepted industry probabilistic tolerance of 90%.

Jan 1, 2020

In the leaching and recovery of gold from copper containing gold ores using cyanidation, some copper minerals also dissolve which can have a detrimental effect on the process efficiency and economics. There are also environmental concerns with current operations discharging cyanide and copper cyanide species into tailings dams, and strict regulations prohibit this for greenfield plants. Cyanide destruction however is not an economic option for new plants treating copper-gold ores. This paper evaluates a potential recovery process to overcome the copper cyanide problem. Despite gold dissolution occurring in copper cyanide solutions having no free cyanide, gold recovery from ores is lower compared to free cyanide. Thus, cyanide addition has to be optimised to maximise the gold recovery whilst endeavouring to eliminate free cyanide at the completion of leaching (CN:Cu less than 3:1). Subsequently, copper cyanide can be recovered using activated carbon. The loaded copper cyanide is easily recovered from the carbon with a cyanide soak and distilled water wash such that the eluted CN :Cu ratio is less than 4:1. The copper could be recovered efficiently by electrowinning, by decreasing the pH of the eluant to 5. The remaining cyanide solution, after electrowinning, is then neutralised to form NaCN and recycled.

Jan 1, 2005

The dynamic breakage process of rocks by the impact of a hydraulic hammer is more complex than one normally assumes. It is even more difficult when one has to conduct the breakage under water. In such cases one does not know exactly what the surface topography and composition are at the bottom of the sea or river and, hence, it is more difficult to select the best position of the hammer before starting the hammering. Typically, an industrial hammer has a diameter of about 250 mm, a length of about 1.25 to 1.75 m and a mass of several tons. The hammer frequency can be up to 50 impacts per minute. The general principles of rock hammering can be easily summarized, but this knowledge is not sufficient to adapt adequately the method for less common rock conditions (e.g. less brittle rock, presence of vertical and subvertical fractures, etc.). That is the reason why we initiated a research project, whereby a scale model has been developed to conduct experiments in the laboratory and whereby discrete element simulations are being conducted. Both aim at a better understanding of the basic mechanisms of rock hammering. The scaled experimental model allows varying the impact energy and the static weight independently. Within the experiment, the hammer is in contact with the rock specimen under a certain confining pressure and with a certain contact pressure due to the static weight. A weight falls on the hammer, creating the dynamic action or impact; the height over which the weight falls can be varied. The penetration is recorded after each impact. After a certain penetration the test is stopped and the internal crack patterns are described. Some simulations have been conducted, allowing the modeling of individual fracture initiation and growth during the penetration of the hammer by either a constant displacement rate (using the UDEC-code) or by introducing the dynamic process (using the PFC-code). Some of the observed features in the laboratory experiments can be visualized in the simulations. However, further research is needed to allow the simulations being an adequate tool to well understand the dynamic process in laboratory experiments, as well as the in-situ behavior.

Aug 1, 2013

By O. Hungr, V. Gischig, G. Preisig

Deep-seated landslides are characterized by slow time-dependent movements induced by constant gravitational creep, and periods of acceleration associated with stress changes within the rock and the preexisting fracture network. Natural stress changes are typically caused by seasonal variations in surface temperatures and groundwater pressures, but also by rare and more violent events such as earthquakes. These processes are responsible for cyclic loading and unloading that leads to rock mass damage, fatigue and progressive failure with time, and may explain sudden, unexpected rock slope acceleration phases. In this work, we present a set of distinct-element models to investigate and compare the role of hydromechanical fatigue and seismic fatigue in the history of a deep-seated landslide. Hydromechanical fatigue arises from the fluctuation of pore pressure in fractures accompanying periods of significant groundwater recharge. In alpine areas, there are usually one or two cycles per year associated with snow melt and intense rainfall periods. In the presence of a deep confined aquifer within the rock slope, the amplitude of pressure fluctuations may reach values of 0.25-0.5 MPa. Hydromechanical models considering such pressure changes are able to reproduce observed slope accelerations-decelerations phases. Substantial accelerations may occur even in the absence of a cycle of exceptional amplitude, depending on the current state of fatigue. At a given time, one or more fractures may be critically-stressed, and a small change in applied stress is enough to cause local failure and induce a crisis of enhanced slope acceleration. This is augmented if the rock slope contains planes of weakness associated with its tectonic history, glacial debuttressing, etc. The corresponding behaviour is analogous to laboratory experiments on rock and metal fatigue. Similar fatigue effects have also been proposed for repeated earthquake events in seismically active regions. Unlike hydromechanical stress changes that occur in a more localized portion of the rock slope, those induced by passing seismic waves involve the entire rock mass. Moreover, the frequency and amplitude of stress perturbations due to earthquakes are different than those induced by pore pressure variations, although both likely contribute in combination to the degradation and progressive failure of large deep-seated landslides when both are present. The results presented illustrate that: (1) assessment of slope stability near critical infrastructure (e.g., hydroelectric reservoirs) should not only consider static stability, but also failure mechanisms related to fatigue that evolve over time and may result in an apparently stable slope progressing towards a critical state due to relatively small but repetitive stress changes; and that (2) characterization of fatigue processes affecting a deep-seated landslide requires multiparametric continuous monitoring at different observation points.

Jan 1, 2015

By Sabine Noelte, Mikko Petteri Rantamäki, Christopher Robben, Anssi Takala, Karl-Erik Rånman

"Sensor-based ore sorting is on its way to establish as a standard option for physical separation. The increasing number of installations in coal, iron ore, industrial minerals and hard-rock metal mining segments underlines the technological and financial potential that is beginning to be untapped. The Ma’aden Phosphate installation with 1.650 t/h sensor-based ore sorter feed sets a new benchmark for the possible capacity of stationary installations. Besides stationary installations, including multiple sorters parallel in different size ranges and multiple stages, containerised semi-mobile plants are applied. These offer two advantages, first being the reduction of transport costs when applied close to the mining face. The second is that semi-mobile systems enable processing of tens of thousands of tonnes of ore in a piloting phase with an approximate duration of 0.5 to six months, verifying the results laboratory mini-bulk tests on 5–10 tonnes of sample. This is especially important for low-grade metal ores because of the inherent Fundamental Sampling Error, as well as the Grouping and Segregation Error. The paper elaborates the results achieved within the I2MINE project, treating polymetallic ore at the Boliden Concentrator in Sweden.INTRODUCTIONSensor-based ore sorting (SBS) is becoming a standard option for physical separation, applied in all segments of mineral production. The Umm Wu’al project sets the bar for stationary SBS installations with 1,650 t/h feed (TOMRA, 2015). TOMRA Sorting Solutions has finalised an agreement in cooperation with Outotec to supply Outotec-branded sorting solutions for the mining and metallurgical industry (TOMRA, 2014). Especially for low-grade hard rock metal ores, an interdisciplinary approach is necessary applying experts for all aspects of mineral production. Due to the impact on the whole process stream, it is important on the end user side to have high level managerial support and involve all disciplines to ensure that all stake holders are involved in the analysis."

Jan 1, 2016

By A. A. Bakke

"The Fort Knox gold deposit is hosted within the Fort Knox Pluton, a Cretaceous multiphase granitic body that intrudes the Fairbanks schist. Gold occurs along the margins of stockwork veins and veinlets, quartz-filled shear zones, and along fractures within the granite. The mineralization is generally sulphide-poor and closely associated with trace amounts of bismuth, tellurium and to a lesser extent with molybdenum and tungsten. At present, proven/probable reserve estimates, based on a cutoff grade of 0.39 g/t Au, are 158.3 million tonnes grading 0.83 g/t Au.The Fairbanks schist comprises the bulk of the country rock. The dominant lithologies present include muscovite-quartz schist and micaceous quartzite. Immediately north and south of the main orebody, mixed metamorphic lithologies of the Cleary sequence, a subunit of the Fairbanks schist, have been mapped. Development of local zones of weakness, most likely due to a broad regional warping event, resulted in brittle-ductile deformation and activation of a northwest-southeast shear couple between contrasting lithologies.The Fort Knox Pluton consists of at least three phases based primarily on textural differences. Intrusion of a fine-grained granite was followed by a medium-grained porphyritic granite. The youngest intrusive phase is a coarse-grained, seriate porphyritic granite, the Vogt Stock. The Vogt Stock forms an elongate dome with the axis in the east-west direction. Structures displayed in the overlying units, believed to be the result of doming, include tension fiSSUres and longitudinal fractures.Premineralization fractures, the result of the magmatic doming, provided conduits for initial stockwork quartz vein development and quartz enrichment in shear zones. Weak development of vein-controlled phyl/ic, potassic, albitic, and argillic alteration styles are present. Evidence of a late thermal event resulting in a low-temperature alteration assemblage of calcite + zeolite (stilbite) + chalcedony + clay occupies breccia zones, joint surfaces, and fractures within the granite."

Jan 1, 1995

By O. G. Olvera, D. G. Dixon, E. Asselin, L. S. Quiroz

Dissolution rates of chalcopyrite (CuFeS2) were calculated using electrochemical impedance spectroscopy (EIS). The calculated dissolution rate decreased by a factor of 3.2 after the electrode was passivated. The results presented in this work indicate that the reduction of Fe3+ was the rate-controlling step for fresh CuFeS2 electrodes while the transport of cations within the passive film limited the dissolution rate for the passivated electrode. The transfer of cations at the electrode/electrolyte and passive film/electrolyte interfaces did not affect the dissolution rates of the fresh and passivated CuFeS2 electrodes, respectively. The catalytic effect of pyrite (FeS2) on the dissolution of CuFeS2 continued after the passivating treatment. The contact of fresh and passivated CuFeS2 electrodes with different FeS2 particles resulted in increased dissolution rates, due to an increase in the reduction rate of Fe3+.

Jan 1, 2014

By Hani S. Mitri

Overhand cut-and-fill mining of narrow vein orebodies inevitably leads to the creation of horizontal pillars. As the thickness of the overlying crown pillar diminishes, stresses build up in the pillar. More often than not, this situation causes an increased level of seismicity and possible pillar burst. One well-known strategy to reduce the hazard of crown and sill pillar burst in cut-and-fill vein mining is that of destress blasting. The paper first reviews the methods used for the monitoring and assessment of potential pillar burst in narrow vein cut-and-fill mining. The influence of horizontal stress, mine depth and pillar thickness on stress build-up in the crown pillar is examined through a characteristic narrow vein numerical model. The paper then presents, with reference to three mine case studies, the benefits of destress blasting and the factors affecting its success as a ground control technique.

Oct 1, 2001

By T. W. Bingay

The production of both lead and zinc in Canada has steadily increased during recent years until today Canada ranks among the world's leading producers of both of these metals. The high prices which they have commanded have led to an energetic search for new deposits and also to an investigation of abandoned properties which, under the present conditions of better prices and more efficient methods of treatment, offer chances of commercial success. It is confidently expected that during the next few years success in both these lines of activity will further increase Canada's lead and zinc output, giving her a still higher ranking among the world's producers. In 1926, approximately 140,000 tons of metallic lead was produced from ores mined in Canada, and of this, 125,000 tons was refined in Canada at Tadanac, B.C. During the same year the production of metallic zinc from Canadian ores amounted to 68,000 tons, of which 62,000 tons was refined at Tadanac. History Of Lead and Zinc in Canada The production of lead in Canada is much older than that of zinc. The chief source has always been the interior of British Columbia. As earl y as the 'eighteen twenties', Indians and Hudson's Bay Company's trappers had discovered an outcrop of lead ore on the site of the present Blue Bell mine on the east shore of Kootenay lake, but it was not until1865 that active prospecting for lode deposits began. In the early nineties the activity of the silver-lead-zinc region of the Slocan reached its culmination and a steady production has been maintained down to the present time. Up to the end of 1924 the Slocan area produced over 38 million ounces of silver, nearly 300 million pounds of lead, and almost 122 million pounds of zinc.

Jan 1, 1927

By M. S. Diederichs, G. Walton

"Developments in understanding the brittle fracture of rock over the past two decades ultimately led to the acceptance of a cohesion-weakening-friction-strengthening model as an appropriate strategy for the modelling of spalling using a continuum approach. This strength model has been used to replicate observed failure depths and geometries for a number of case studies in the literature, most notably the AECL Underground Research Laboratory in Manitoba. One thing which these case studies typically ignore, however, is the influence of rock dilatancy on the evolution of brittle failure. Physically, this phenomenon is the volumetric expansion of the rock due to fracture opening; numerically, this phenomenon is captured by the flow rule, which is often characterized by the dilation angle, ?. Accurately modelling rock dilatancy in conjunction with strength evolution is necessary both to predict the magnitude and distribution of ground displacements, as well as the exact depth and shape of the fracturing zone. Both of these factors can have significant implications for support design. This paper is focussed on presenting some of the recent developments in this field in the context of a number of numerical modelling case studies. Initially, a new model for the dilatancy of brittle rock is presented, as well as some representative data and model parameters for different rock types. Next, several case studies of highly stressed tunnels and shafts are presented. The results of continuum numerical models are presented to demonstrate the ability of the back analyses to match observed in-situ measurements and obtained. The predictive capabilities of the material model are also highlighted for cases where sufficient “a priori” information (such as laboratory compression testing data) are available. The issues of model nonuniqueness and strain-localization/bifurcation are also addressed."

Jan 1, 2015

By Mengsu Hu, Yuan Wang, Jonny Rutqvist

Material interfaces and typical boundary conditions are boundaries influencing the existence, uniqueness and stability of numerical solutions of water flow in heterogeneous media. The Numerical Manifold Method (NMM) with a two-cover-meshing system is an ideal method to handle boundaries, considering its flexibility with no need to adjust mathematical nodes onto boundaries, the meshing efficiency, and its integration precision. In this study, we derive and compare two new approaches for boundary constraints, i.e., a discontinuous approach with Lagrange multiplier and a continuous approach with jump function in the frame of NMM. In the discontinuous Lagrange multiplier method (LMM), Dirichlet boundaries or the material interfaces are regarded as discontinuities which are linked by Lagrange multipliers. In the continuous Jump function method (JFM), the material interfaces are regarded as inner interfaces, where the refraction law is realized by constructing jump terms with discontinuity of hydraulic gradient in its normal direction. Both the continuous and discontinuous approaches make full use of the aforementioned advantages of NMM and are established based on a clear physical meaning of water flow by our energy-work seepage model. The newly derived boundary-constraint approaches were coded into an NMM water flow model and tested for precision and efficiency on different simulation examples. We first tested both LMM and JFM for an idealized heterogeneous model, comparing the numerical results with analytical solutions. Then we tested both approaches with a heterogeneous model and compared the results of hydraulic head and specific discharge. We proved that both approaches are very suitable for material boundaries considering the accurate realization of the boundary constraints and the flexibility with no need for mesh-conforming.

Jan 1, 2015

By Michael Samis

Conventional project valuation techniques, such as discounted cash flow (DCF) method, are more frequently being criticised for the manner in which they consider the interacting effects of uncertainty and project structure (including management flexibility) on project value. Modern asset pricing (MAP; often called ?real options valuation? when applied to the analysis of flexibility) is a more general valuation framework that corrects many of the shortcomings of common valuation methods. Previous mining applications of MAP have tended to treat the ore deposit as a homogenous entity. While useful for demonstration purposes, this is inadequate for practical application in industry. This paper presents a MAP valuation example that allows for the heterogeneous nature of an ore deposit. It shows that deposit structure may increase the complexity of the mine planner?s decision so that results of a standard DCF analysis, or a simple MAP analysis that ignores the details of deposit structure, are misleading. In the example, a management is considering the development of an adjacent low-grade zone while mining operations in a high-grade zone are ongoing. If the low-grade zone is developed before high-grade reserves are exhausted, the proposed development will include both low-grade zone development and a capacity expansion to handle additional low-grade reserve production. If development of these reserves is delayed until the high-grade reserves are depleted, then the low-grade reserves can be developed without a capacity expansion. A typical DCF analysis would reduce the management?s decision problem to three alternatives: 1) continue mining only in the highgrade reserves, 2) immediately develop the low-grade reserves and expand capacity, and 3) delay low-grade zone development until the high-grade reserves are exhausted. The model presented here allows the management to reconsider the development and capacity expansion decision on a discrete half-year basis. It delineates price regions, for given levels of high-grade zone reserves, in which it is optimal to develop the low-grade zone, defer low-grade zone development and abandon the mine irrevocably. The model presented here extends the ability of mine planners to describe actual project structure while using the MAP valuation framework that is already noted for its capacity to combine project uncertainty and risk insights with a dynamic project description.

May 1, 2001