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"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By L. Betteridge, A. Marks

"An OK 300 cu. ft. Skim - Air cell was installed at the HBM&S concentrator in Flin Flon in 1987. Since that time, 3 additional OK Skim - Air cells have been installed in HBM&S concentrators. The cell treats a coarse 70% solids slurry with a residence time of 2.5 minutes. The product from the cell (a unit cell type application) is a final grade copper concentrate with high precious metal values. Since its installation, the cell has improved gold recovery by 10 - 15%. Process variables such as circulating load, pH, froth depth, feed size, and reagent additions all have an effect on the operation of the cell. Maintenance on the cell has been minimal. Initial operating problems involving level control have been significantly reduced and operations are now relatively trouble free. Although very successful at Flin Flon, site specific operating circumstances will determine the suitability of this cell. INTRODUCTIONHudson Bay Mining and Smelting operates four concentrators in Northern Manitoba. Three treat copper-zinc ores, the fourth mills a copper-nickel ore. The Flin Flan concentrator operates two circuits in parallel which treat copper and zinc ores from the Trout Lake and Callinan mines. Both circuits in the Flin Flan mill have Skim-Air cells integrated into the grinding circuits.The Trout Lake cell was installed first and had a payback period of a few months. Required modifications to the cell were made to enhance its performance. These included changing the discharge valve size, tuning the level controller, and installing an insert into the rubber valve sleeve to increase its wear life. The payback period on the Callinan cell was significantly reduced because these modifications were completed prior to its installation.The cells produce a final grade copper concentrate and since their installation gold and silver recoveries to the final copper concentrate have increased significantly. Operating parameters such as coarseness of cell feed dictate the metal recoveries and froth depth determines the selectivity of the cell and therefore the grade of the concentrate.The Skim-Air cell can be suitable in applications where a final product is generated. However, when a bulk concentrate, which requires further separation, is produced, the coarseness of the product may not make it amenable to conventional flotation.The Flin Flan mills Skim-Air cells have worked exceptionally well with little maintenance required."

Jan 1, 1991

By Joseph Poplawski, Christian O’Keefe, Robert Maron

"Unique and difficult minerals processing measurement situations will be described and the application of passive array-based technology for performing these measurements will be illustrated. Examples of these situations include volume flow measurements in froth lines and flotation feed lines with entrained air, slurry lines with magnetite and other magnetic ore, slurry lines with abrasive or corrosive materials, high pressure lines, and slurry and non-slurry lines exhibiting scale buildup. Other situations include measurement of entrained air levels in pipes and in flotation columns. These measurements are achieved through CiDRA’s patented passive sonar array-based technology. This technology performs two independent measurements – flow rate and entrained air amounts. Two hardware implementations of this technology have resulted in a non-intrusive flow and entrained air meter which easily is installed on the outside of the pipe, and a submersible version for entrained air or gas holdup measurements which is used in flotation processes. Recent developments in extending this technology to solve other unique measurement problems such as valve movement confirmation will be covered.INTRODUCTIONThe minerals processing industry faces many unique and challenging process control conditions and environments. In terms of flow measurements, many of these situations are not being properly served by traditional flowmeters such as ultrasonic meters, magmeters, turbine meters, orifice plate meters, vortex flow meters, Coriolis flow meters, and venturi meters. A new class of flowmeters has been developed that solves these unique situations and flow measurement problems. This new class of flowmeter technology utilizes sonar-based processing algorithms and an array of passive sensors to measure not only flow, but also fluid composition. It does so accurately, reliably and without making contact with the fluid. These measurements are performed on practically any type of fluid within virtually any type of pipe.PRINCIPLE OF OPERATIONSonar array-based flowmeters are ideal for tracking and measuring the mean velocities of disturbances traveling in the axial direction of a pipe. These disturbances generally will convect with the flow, propagate in the pipe walls, or propagate in the fluid or slurry. First let us focus on the disturbances that convect with the flow. The disturbances that convect with the flow can be density variations, temperature variations or turbulent eddies. The overwhelming majority of industrial flows will have turbulent eddies convecting with the flow, thus providing an excellent means of measuring the flow rate as described below."

Jan 1, 2008

By R. Grimard, M. Gamache, L. -P. Bigras, P. Cohen

This paper describes a real-time fleet management system for an undergroun mine. Dispatching, routing and scheduling are handled simultaneously, taking into account the mine status, operational constraints and vehicle location information. Each assignment decision takes into account the traffic on the road segments of the mine network, whether road segments are bi-directional or uni-directional, and ensures that each LHD (load-haul-dump) vehicle arrives at loading and dumping points with the correct orientation. Such a system can be used either as a simulation tool for strategic planning or as a real-time managing and optimizing system for operations. In the simulation mode, the system can accurately estimate the impact on productivity of decisions such as the development of waiting areas (bays, sidings), or the addition (elimination) of vehicles to the fleet in operation. When used for real-time dispatching, routing and scheduling of vehicles, the system can optimize production with respect to various assignment criteria such as cycle-time minimization or deviation from a target production plan.

Jan 1, 2004

By Leslie F. Sawatsky

Each potential oil sands developer deals with the question of optional sources of raw water to supply large water demands that range from 50 to 80 million cubic metres per year for each of six existing and planned developments. The Athabasca River currently supplies nearly all of the water to the existing mines via conventional bank intakes, which has resulted in some concern over the effects of reduced river flows. This paper describes the various water supply options, and the likely scenario for future oil sands water supply projects. Various water supply options have been suggested including Athabasca River water via infiltration galleries, groundwater, combined Athabasca River water and alluvial groundwater using wells (i.e. bank filtration systems), diversion of tributary rivers, utilization of large lakes in the region and pumping from other large rivers in the region. Investigations show that the size of river catchment needed to support raw water usage by a typical oil sands mines exceeds 5,000 km2 eliminating all tributary rivers that are located in the oil sands region except those rivers with large drainage areas like Firebag and MacKay Rivers. Lakes cannot be used as a source of supply due to large water deficits for smaller lakes and the large cost of sourcing water from a lake as large as Lake Athabasca. A groundwater source alone would not likely meet the large water demands. River intakes on the Athabasca River will likely continue to be the most practical water supply option for oil sands mines north of Fort McMurray, although various types of Athabasca River intakes are possible. Existing intake systems include screened riverbank intakes, forebay intakes, and river bottom intakes. Infiltration galleries are not feasible for most sites, though some bank-filtration-type systems using high capacity wells may be an option if there is sufficient thickness of high-permeability alluvium at a suitable location in the Athabasca River valley.

May 1, 2004

By K. Gie Tan, Frank Wright

"Misty Mountain Gold Limited (MGL - TSE VSE, MGLCF - NASDAQ) of Vancouver, owns the Harmony Gold Project located in the Queen Charlotte Islands of British Columbia. The deposit contains a mineable reserve of 2.3 million ounces of gold, at a 1.2 g/t cut-off and an average grade of 2.1 1 g/t Au.Discovered in 1970 and frequently investigated by previous owners, full-scale production has not yet occurred because of the complex metallurgy of the deposit. Recent process studies that were completed in six months at Process Research Associates Ltd. (PRA) of Vancouver resulted in significant improvements to the project viability. The work involved detailed mineral processing studies aimed at achieving a marketable concentrate. An option for bio-oxidation and cyanidation to allow on-site dor6 production was also investigated.The main findings at PRA followed the front-end recovery of finely divided free gold (Au) by gravity concentration. Approximately 20% of Au reported to less than 0.2% of the mass, resulting in a grade exceeding 500g/t Au. The resulting gravity tailing provided a uniform feed for flotation evaluation. The optimization of this step allowed for a reasonable primary grind size of 80% passing (&) 50pm. Efficient slime’s rejection was made possible by flotation at a reduced pulp density, and pre-oxidized sulphides were reactivated with Na,S. The regrinding of the bulk flotation concentrate followed by up to five stages of cleaning resulted in a combined gravity + flotation product of 50g/t Au with 82% recovery in less than 4% of the feed mass.Further studies indicated that the flotation concentrate was amenable also to tank bio-oxidation. At 65% sulphide oxidation the gold recovery improved from less than 70% to 90% by cyanide extraction using CIL (carbon in leach). This compares to less than 45% gold recovery from whole-ore cyanidation in several previous studies. Heap leaching may also be considered for lower grade material. PRA’s methodical approach and consistent results dispelled the uncertainty about predicting the material behavior for the Harmony Property."

Jan 1, 2000

By D. Komljenovic

This paper presents the use of queuing theory in truck fleet sizing in open pit mining operations. In the first part, a methodology is developed by which an optimal ratio between the size of shovels and trucks may be determined. The second part gives the fundamentals of the queuing theory and its application in analyzing shovel and trucks. The stochastic character of involved times (loading, truck cycle, etc.) is taken into consideration. Using the above theory, the optimal truck fleet size in actual conditions may be estimated. Minimal operating cost of the working system (shovels-trucks) represents the basic requirement of the analyzed process. The methodology was validated on Caterpillar front-shovel ? truck combinations.

Sep 1, 2004

By M. W. Bartley

DURING the field season of 1938, the Ontario Department of Mines assigned a combined geological and geophysical survey patty to the investigation of the location, genesis, structural relationships, and economic possibilities of the hematite deposits at Steeprock lake. The investigation was carried out by detailed mapping of the rock exposures and a magneto-metric survey of the drift-covered portions of the area. This was supplemented during the winter of 1938-39 by further geophysical work conducted on the ice. Dr. A. A. Brant, of the Department of Physics, University of Toronto, was in charge of the geophysical work for the Department of Mines in the summer and for the Sterola Exploration Company in the winter. The writer supervised the geological examination. Scope of the Paper The present paper is an attempt to acquaint the members of the Institute with the structure and mode of occurrence of the deposits, since many people are of the erroneous opinion that they are analogous to the Mesaba and Michigan deposits. It is hoped that, from this discussion, they may be able to draw some conclusions of their own regarding the nature of the deposits, and the importance and future possibilities of the region.

Jan 1, 1939

By D. Komljenovic, J. Paraszczak

"This paper presents the use of queuing theory in truck fleet sizing in open pit mining operations. In the first part, a methodology is developed by which an optimal ratio between the size of shovels and trucks may be determined. The second part gives the fundamentals of the queuing theory and its application in analyzing shovel and trucks. The stochastic character of involved times (loading, truck cycle, etc.) is taken into consideration. Using the above theory, the optimal truck fleet size in actual conditions may be estimated. Minimal operating cost of the working system (shovelstrucks) represents the basic requirement of the analyzed process. The methodology was validated on Caterpillar front-shovel – truck combinations. IntroductionLes camions représentent probablement les équipements les plus utilisés pour le transport dans les mines. Le coût de transport peut parfois atteindre 50 % du coût d’exploitation et 25 % du coût total (Collins, 1996; Kennedy, 1990). Il est critique pour une opération minière de le minimiser. C’est un sujet qui a été traité relativement souvent dans la littérature spécialisée. Les premières applications informatiques dans l’industrie minière ont été développées pour la détermination du temps de cycle des camions.Au fil des ans, la capacité des camions a augmenté et, aujourd’hui, les plus gros manufacturiers de camions (Caterpillar, Orenstein & Koppel, Euclid, Terex, Unit Rig, Komatsu, Liebherr, Belaz) fabriquent des camions ayant une capacité de 200 t et plus dont quelques-uns d’une capacité supérieure à 320 t. Pour les plus gros camions, le coût d’opération peut même dépasser 240 $US/heure dans des conditions modérées (Caterpillar, 1999). Les mines modernes de grande taille peuvent posséder plusieurs dizaines de camions dans leur flotte."

Jan 1, 2004

By P. D. R. Maltby

"The Canadian Institute of Mining and Metallurgy has undertaken to host the XIV International Mineral Processing Congress to be held in Toronto at the Royal York Hotel from October 10 to 16, 1982. The theme of the Congress will be ""Worldwide Industrial Application of Mineral Processing Technology."" The program will include 10 sessions and numerous field trips to the different mining areas of Canada.For prospective authors, the preliminary program includes sessions on,1. Flotation - plant practice, equipment design, simulation, control and economics.2. Comminution - plant practice, equipment, design, simulation, control, wear, energy consideration and economics.3. Round table seminar on large grinding mills.4. Round table seminar on modern and future plant design.5. Mineral processes to recover precious metals.6. Mineral processes to recover energy minerals (coal, uranium).7. Mineral processes to recover industrial minerals.8. Round table seminar on the environment and ecology and how the different countries cope with associated problems.9. Materials handling with an emphasis on agglomeration techniques ereconentration methods, solid-liquid separation.10. Open session to deal with topic emerging from general demand."

Jan 1, 1980

By Alan D. Curtis

A standard planning block model for Phelps Dodge North America Operations has been developed to improve mine planning efficiency and performance in a skill starved environment. The model saves time on software management and training, consolidates data and standard information/output, enhances evaluation and strategic process, and improves communication between sites.

May 1, 2007

By S. E. Daniel

"Due diligence reviews are an essential part of mineral property acquisitions. One of the primary reasons to complete an environmental review prior to exploration property acquisition is to assess the potential environmental liability. It is critical to identify the potential reclamation costs or existing environmental liability associated with the exploration property. A review of the existing condition of the property and its history can allow prioritization of exploration targets and ease future expenditures for historic damages. IntroductionIn Canada and some other jurisdictions, the purchaser of a property is assumed to know, and is (in the absence of deceit or fraud) financially responsible for, what is purchased. A plea of ignorance, at least from the perspective of environmental liability, is not an acceptable excuse to avoid responsibility (Nelson, 1994). Therefore, if an exploration company (for the purposes of this paper, any organization conducting exploration work) purchases a property that has environmental contamination, the new owner is liable for the cost to reclaim the site to an acceptable level. The cost to reclaim the site is the environmental liability. The new owner is responsible for existing environmental liability of the property, even if the exploration company’s personnel were not aware of the problem. In simplest terms, buyers beware. Therefore, in order to protect the exploration company’s interests, the exploration manager should determine the characteristics of the property of interest prior to purchase or other involvement, and exercise due diligence.The term “due diligence” is often used in the mining industry. To ensure clarity, in this paper’s context, the author has chosen to use the following meaning: “… due diligence is used to describe a detailed data review, generally in connection with the purchase or sale of a mineral property, the approval of a large capital expenditure, or the borrowing of a large sum of money” (Smith, 1997).Directors of the exploration company are held liable for the decisions made, unless they have relied in good faith on,“…a written report of the auditor, or a report of a lawyer, accountant, engineer, appraiser, or other person whose profession lends credibility to a statement made by any such person” (OBCA, 1994)."

Jan 1, 2003

By James A. Brown, Marius Botha, Christopher A. Fleming

"The technical and economic feasibility or re-processing hundreds of millions of tons of tailings in a number of historic gold tailings dams in the Witwatersrand area of South Africa is being investigated. The objective is to recover uranium and residual gold from the tailings, as well as to oxidize the sulphides to eliminate long term environmental liabilities associated with acid mine drainage. The tailings from the re-processing plant will be re-deposited in a new area far from urbanization, allowing for the rehabilitation of the real estate currently occupied by these historic tailings.The first step in the process involves a mild-regrind and mild acid leach of the tailings (pH 2.5 to 3.0) to dissolve up to 40% of the uranium. This uranium is recovered directly from the pulp by resin in pulp (RIP) with a strong base resin. The RIP tails are then treated by flotation to recover a rougher pyrite concentrate, and flotation tailings that are discarded. The rougher concentrate is cleaned to produce a final pyrite concentrate and cleaner scavenger tailings, and the pyrite concentrate is oxidized in an autoclave to leach uranium and generate acid. The autoclave discharge is combined with the cleaner scavenger tails, and the acid and ferric ions generated in the autoclave are used to leach more uranium and oxidize more sulphide in the cleaner tails. The product from the concentrate leach circuit is processed by resin in pulp for uranium recovery, followed by neutralization, cyanidation and carbon in pulp for gold recovery.The rougher float tails may be further treated to recover gold that was not recovered in flotation, but which had been liberated from the old dumps by natural oxidation of some of the pyrite over many decades. The float tails would be neutralized and treated by cyanidation and CIL to recover this liberated gold.All parts of the flowsheet have been extensively tested in the laboratory, and the critical elements of flotation, pressure oxidation and resin in pulp have been demonstrated in pilot plants. The results of the hydrometallurgical investigations are presented here."

Jan 1, 2010

By S. Felderhof, W. S. Vaughan

"Over the years, it has been increasingly difficult for the minerals industry to raise the necessary capital for its activities. To alleviate this phenomenon, complete transparency and capital market efficiency is needed. Since a company’s mineral resources and mineral reserves base is an essential component to obtaining capital, reporting these assets must also be transparent and efficient. This must occur, however, at an international level given that mineral industry operations, and its financing, are international. To achieve this, an international committee (i.e. Australia, Canada, South Africa, the United Kingdom and Europe, and the United States) was formed and has been developing standards for the reporting of mineral resources and mineral reserves.The effectiveness of these standards, however, depends on adoption by the required regulators. Unfortunately, these standards have not been recognized by the U.S. Securities and Exchange Commission (SEC). Instead, the SEC adheres to its old standard (Industry Guide 7), making it increasingly expensive and difficult for international mining companies to obtain capital in the United States. Compounding the problem is the SEC’s influence over the current work of the International Accounting Standards Board and the International Organization Organization of Securities Commissions. These organizations are in the process of standardizing international accounting practices and international securities rules and regulations. Their current position may prevent adoption of the industry-developed mineral resources and mineral reserves standards which are internationally recognized."

Jan 1, 2005

By Lewis Martin

Whereas many researchers and mine engineers have conducted tests using different types of grout, grout ratios, and physical modifications of the cable to determine cable bolt load characteristics, few studies have been conducted on cables fitted with internal instruments. Those studies that have been done have concentrated on cable behavior averaged over significant cable lengths. Researchers at the Spokane Research Laboratory (SRL) of the National Institute for Occupational Safety and Health in Spokane, WA, are investigating the physical properties of cable bolts by replacing the conventional king wire with a modified king wire on which strain gauges have been installed . This paper documents test results on these modified cable bolts. Three tests were conducted at SRL on 1.83-m-long cables grouted into two 0.91-m-long pull-tube assemblies. Load along the cable was monitored with 20 strain gauges installed along the length of the cable. The instrumented cable bolt provided reproducible point measurements of cable load as opposed to load measurements averaged over significant cable lengths. Such point measurements can assist in interpreting the influence of cable confinement, grout quality, rock mass stiffness, and other factors. The instrumented cable bolt is a practical field and research tool because it can predict point loading along the cable and thereby allow interpolation of maximum possible loads on a cable.

May 1, 2002

By Claude Bazin, Jalna Lamontagne

"The operators of mineral processing plants collect daily samples from strategic process streams with a view to prepare production balances to assess plant performances. The rules to minimize the risk of systematic sampling errors are known and applied in many mineral processing plants. The mass of the sample to be collected is calculated to yield a target measurement reproducibility considering the fundamental error associated to the sampling of heterogeneous material. This paper demonstrates that this practice is partly valid if one does not account for the time variation of the ore composition during the day. The concept is demonstrated using samples collected on a 30 minute basis from different streams of a gold ore concentrator. Results show that depending of the natural variability of the stream characteristics the mass of the daily samples may not be the critical variable to obtain reproducible measurements. On the other hand the number of cuts taken during the day could impact on the variance of the measurements obtained from daily samples.IntroductionMineral processing plants may treat several thousand tons of ore every day to produce concentrate or impure gold ingots. The operation and performances of these plants are monitored on a daily basis through the collection of ore samples from various streams of the processing circuit. The samples are prepared and assayed to obtain the concentrations of target elements that are subsequently used to calculate the mass flowrates in the streams of the circuit and ultimately the distribution of the target metals for the estimation of the plant performances (Morrison, 2009; Lachance and Leroux, 2016).The acquisition of representative and reproducible samples is therefore the first step in the characterization of plant performances. The term representative sample is used here to indicate an unbiased sample, i.e. a sampling procedure that does not introduce a systematic error. Rules for the collection of unbiased samples are reviewed in the literature by different authors (e.g. Morrison, 2009) and are not discussed in this paper. The term reproducible indicates the dispersion of the measurements around the average value of a characteristic of a stream meets an acceptable level of variance. The reproducibility of a measurement process (sampling and analysis) is assessed by the relative standard deviation or coefficient of variation of the measurement that is a function of the sampling and assaying errors (Morrison. 2009; Gy, 1979). Usually the focus is put on the fundamental error of sampling whose variance can be controlled by the choice of the primary sample mass or adequate particle size reduction during the preparation of secondary or tertiary samples extracted for the chemical analysis. When a sample is taken from a stream that exhibits a time varying characteristic, the obtained measurement exhibits a variability that is not only a function of the sample mass but also of the natural variability of the ore in the sampled stream. This paper examines this aspect of the sampling of a time varying process on the reproducibility of composite samples for a day of production."

Jan 1, 2017

By Pierre Rocque

The Red Lake Mine is located approximately 600 km northwest of Thunder Bay. This 545 tpd (600 tons/day) underground narrow vein gold operation is set to produce in excess of 14.8 tonnes (475,000 ounces) in 2001 at a cash operating cost below 75 U$/oz. The high-grade nature of this deposit (>55 g/t or >1.6 opt) coupled with its complex geological environment and relatively deep location dictated the choice of a very selective primary mining method, Mechanized Overhand Cut and Fill. In addition to geological challenges, mine design issues such as material handling, ground stability and requirements for yieldable ground support are also discussed in this paper.

Oct 1, 2001

By Donald Leroux, Lori Lynn Smith, Robert Hutchison

"The grinding circuit of the Heath Steele concentrator was sampled under five different sets of operating conditions. The balanced results of the sampling campaigns were used to calibrate steady-state rod mill, ball mill and cyclone models using a commercial simulation software package (JKSimMet® ). Thirteen process variables had the potential to affect significantly the performance of the grinding circuit. Statistical-Design-of- Experiments techniques were applied to plan the suite of simulations in order to improve the quality of and minimize the time to find the optimal solution. The effect of each factor on three performance indices (the cyclone overflow size distribution, the circulating load and the cyclone underflow density) was modeled with empirical polynomial relationships using another software package (Design-Expert@)T. he conditions under which the cyclone overflow size distribution was maximized while respecting circulating load and cyclone density constraints were identified using these relationships. Among the most interesting results is the prediction of a set of conditions where the circuit target size distribution is achieved with only three ball mills instead of four.IntroductionProduction at the Heath Steele concentrator (near Miramichi, New Brunswick) started some 43 years ago at a rate of 750 t/d. The plant capacity was increased to 4000 t/d through successive expansion phases in the seventies (Sapiro, 1977; Johnston, 1978). However, as a result of depleting ore reserves, the plant throughput had to be gradually reduced to the current production rate of 2700 t/d. Heath Steele Mines currently have proven and probable reserves which would see it producing until the end of 1999 (Noranda Inc., 1997).An analysis of the grinding circuit of the Heath Steele concentrator was recently commissioned to identify opportunities for reducing operating costs while maintaining budgeted mill throughput and metallurgical performance. Since the plant will likely be operated below nominal capacity for the rest of its lifetime, the possibility of improving grinding efficiency by operating with fewer ball mills and/or crushers was contemplated."

Jan 1, 1999

By G. H. Babcock, D. A. Knight, V. G. Medina

"Production commenced at the Golden Sunlight Mine in 1983 and at Kidston Gold Mine in 1985. These projects were both constructed under the management of the Placer Dome Inc. (Technical Services) group of Vancouver, B.C.Golden Sunlight uses a conventional rod mill/ball mill grinding circuit while Kidston uses a SAG /ball mill, and later on, SABC circuit. Since the hardness of the ore and the fineness of the primary grind in both mines are about the same, a meaningful cost comparison can be made. The comparison is made on the basis of capital and operating costs.The result of this study indicates that a significant capital cost savings can be achieved in favour of the SAG /ball mill circuit when the ore is amenable to semi-autogenous grinding. With a good maintenance program, the operating cost for the SAG /ball mill circuit could also be lower that the conventional rod mill/ball mill circuit.HISTORYGolden Sunlight MineGolden Sunlight is a 5 530 t/d gold mine located near Whitehall, a small town 60 km east of Butte, Montana. Originally optioned by PDI U.S. in 1958, the development of the property waited until 1981 when economic conditions became favorable for the project to proceed.Semiautogenous grinding tests were conducted during the final stages of the feasibility study. The hard near surface ore was not quite amenable to semi-autogenous grinding. The best result produced from a series of tests using a 1.83 m diameter mill was a semiautogenous work index of 39. This is substantially higher than the 22 Bond work index of the sample used in the testwork. A conventional SAG/ball mill circuit for this ore will be extremely inefficient, and for this reason, this circuit was rejected in favour of a conventional rod mill/ball mill circuit."

Jan 1, 1991

By Marvin J. Udy

THE preparation of this paper is in response to many requests for in-formation on the mining and smelting developments which have been carried on for the past three years or more by the Chromium Mining and Smelting Corporation of Canada. By way of introduction, the following paragraphs, relating to the early history and present status of the chrome-mining industry in the United States, are of interest. They are quoted from Bulletin No. 76 of the California State Mining Bureau, published in August, 1918: 'Chromium was discovered about 1797 by a French chemist, Louis Nicolaus Vauquelin, in ore from Siberia. From that time until 1827, the Urals, in the region of Ekaterinburg, supplied the chromium used in . Europe. In the summer of 1827, as the historian advises us, Isaac Tyson, Jr., saw in a Baltimore market-place a cart containing a cider barrel, which was held from rolling about by some heavy black stones. He had made a study of such stones at the first-known American locality, the Bare hills near his father's home, six miles from Baltimore, and he recognized the black stones as chromite. On inquiry, he found the chromite came from the Reed farm in Harford county, 27 miles northeast of Baltimore. At this time, Tyson was one of the very few men in the country who knew the value of chromite, and in the next few years he took full advantage of this knowledge. He immediately bought the Reed farm. He found about 30 tons of float-ore on the surface, but there was no outcrop of ore in place. Never-theless, he sank a shaft, and at a depth of eight feet struck an ore-pocket which proved to be 80 ft. long, 25 ft. wide, and 8 ft. in maximum thickness. His next discovery was of placer chromite in the sands in the beds of brooks on an estate called Soldiers' Delight, 16 miles northwest of Baltimore. Thus far, Tyson's observations had shown him that chromite occurred apparently only in serpentine areas. His explorations were now leading him farther afield. In 1828, he found on the Wood Farm, in Lancaster county, Pennsylvania, a deposit of float chromite which led him to lease the ore-right of the farm, which he finally purChased in 1832. Here he developed the famous Wood mine, the largest single producer of chromite in the world.

Jan 1, 1938