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By Fiona M. Doyle Garner

Hydrolytic stripping is the process whereby metal ions in a loaded solvent extractant are hydrolyzed by water, typically at 130°-200°C. Equilibrium hydrolytic stripping tests were done on Versatic 10 solutions of various metals, singly and in mixtures. Single solutions of Fe, Xi, Cu, Mg, and tin precipitated aFe2O3, Ni(OH)2, Cu2O, Mg(OH) 2 and ?Mn203 respectively during hydrolytic stripping. Several mixtures containing iron precipitated magnetic spinel ferrites, MFe20k. No other combinations formed mixed oxides. It is proposed that the mechanisms for hydrolysis and precipitation of iron in loaded Versa- tic solutions are similar to those for iron hydrolysis in aqueous solutions. Infrared spec- troscopy and thin-layer chromatography of mixed iron-nickel Versatic solutions indicated that mixed Fe-Ni carboxylate complexes are present. Magnetic interactions between mixed complexes are thought to be responsible for the homogeneous nucleation of magnetic mixed oxides in preference to single oxides.

Jan 1, 1984

By William J. Dimond

Computor analysis has opened a new world of information for the mining of resources. This paper is directed at the mining of coal. The same procedures apply to most mining projects. The available facts when evaluated against the variables produce the answers. The project must be carefully analyzed, so that the facts can be organized in a data file. The file can be expanded as additional information is obtained during the entire life of the mine. If the mine is pre-planned, the file will be expanded in an orderly fashion and updated information will be available at all times. The development of a property goes through several phases; Exploration, Economic Analysis, Development, Production, and Reclamation. Each phase is an expansion of the data file. The validity of the answers is directly related to the accuracy and quantity of available data. The basis for a data file is horizontal position, and elevation of each piece of information. A coordinate system and datum are reference for a digital (X, Y and Z) position in a spatial system, a three dimensional digital model of the mine. The current practice is to use the State Plane Coordinate system and elevations as established by the U. S. Coast and Geodetic Survey. Each state has adopted this system by law. In the event there is litigation, it is an advantage to have the data on the legally recognized system. The control must be expanded so that all data can be assigned a digital position, and planned to fulfill the requirements for all phases of the mining operation. The project must be analyzed to insure that the objectives can be achieved without duplication or loss of time. sufficient data must be available to reach each required level of information. The coal data can be defined in two categories, spatial

Jan 1, 1977

By PDF

Previous work has shown that significant, free milling gold values exist in the Ryan Lode ore. This project used pilot scale equipment to estimate the percentage of gold recoverable by gravity methods from the circulating load of a conventional, closed-circuit, grinding mill. The pilot scale flowsheet employed three stages of gravity concentration, hydraulic classification and batch grinding to simulate a full scale milling circuit. 172 kg (379 lbs) of Ryan Lode ore were processed, having a head grade of 4.8 g/metric ton (0.14 oz/ton). Results showed that simple gravity methods are capable of recovering 45-50% of the gold values in a concentrate grading in excess of 3430 g/metric ton (100 oz/ton). Of the remaining gold values reporting to the classifier overflow solids (80% passing 70 microns, 3.1 g/metric ton (0.09 oz/ton)) 89% were recovered from 48 hour bottle roll tests.

Jan 1, 1995

By R. G. Graber

Field testing of GPS mining applications has confirmed the technical and operational viability of GPS for precise, centimeter-level positioning in harsh taconite environments. GPS hardware has provided consistent availability exceeding 90%, with precision in certain applications of ± 0.07 foot at 95% confidence levels. Despite these technical successes though, challenges persist in achieving effective GPS integration. These challenges include the acceptance of new job tasks by mine personnel, the capacity of typical mine data communications infrastructure and the need to design GPS interfaces for new mining equipment.

Jan 1, 1998

By James P. Connell

HISTORICAL BACKGROUND The American Concrete Institute defines shotcrete as "mortar or concrete conveyed through a hose and pneumatically projected at high velocity onto a surface." This definition thus includes what is traditionally known as gunite, which is a pneumatically applied mortar. In mining practice, the term shotcrete is restricted to pneumatically applied concrete, and this differentiation will be used in this chapter. In 1914, following the invention of the mortar gun in 1907, then chief engineer of the US Bureau of Mines (USBM) George Rice developed the gunite process for underground test work at the USBM facility at Bruceton, PA. After World War I, gunite was used extensively in American mines and was also utilized for underground civil works such as the San Jacinto tunnel in California. The greatest development was in Europe where, as early as 1911, gunite was successfully used as an overlay for deteriorated tunnel linings. In 1951, the Swiss firm Aliva developed a pneumatic gun capable of handling coarse aggregate, thus making possible the first use of shotcrete at the Maggia hydropower development. Initially, shotcrete was used to reduce manpower requirements for forming and placing conventional concrete. However, by 1954 Sonderegger was reporting that the structural advantages of shotcrete were derived from its flexibility and from the fact that it could be applied almost immediately after the opening had been made. The incorporation of wire mesh into the shotcrete led to the new Austrian tunnel method or NATM. The use of shotcrete in American mines has been implemented more recently. This delay seems to be due to previously unsuccessful experiences with gunite as a structural material and to the US reliance on wood or steel supports in main-line haulageways. The long experience with the apparently more substantial rigid supports led mine operators to be reluctant to accept the new and seemingly unrealistic lighter shotcrete support. APPLICATION REQUIREMENTS Shotcrete is a relatively new material for use in underground support systems. Consequently, experienced miners are not always available who are capable of applying the material effectively. Shotcrete, particularly in the small cross sections typical of mine shafts or haulageways, is applied in cramped quarters under less than ideal conditions. Adequate lighting should be made available. The surface should be clean and free of running or dripping water. It may be necessary to collect flowing water in plastic pipes or water collection devices. Any dry cement dust from previous shotcrete applications should be washed from the surface in order to assure a good bond. The US Bureau of Reclamation (USBR) while shooting test panels at the Cunningham tunnel in 1974, found that experienced shotcrete operators were able to obtain up to three times greater compressive strengths than were obtained by unskilled operators using the same equipment and shotcrete mix. ENVIRONMENTAL AND SAFETY REQUIREMENTS Since sodium and potassium hydroxide, as well as other moderately toxic compounds, are often contained in shotcrete (particularly where accelerators are used), safety precautions must be taken to prevent skin and respiratory irritation. Nozzlemen and helpers are required to wear gloves, protective clothing, and ventilation hoods with a filtered air supply. Respirators approved by USBM, equipped with chemical filters that will not pass the caustic mists, may be permitted in lieu of hoods if goggles or safety glasses are worn. Protective ointments are available to reduce skin irritation. All air and shotcrete feed hoses should be equipped with safety-type couplings and secured with safety chains at each coupling to prevent whipping in the event of a hose or coupling failure. Some environmental effects can take place down-stream from the development face being supported. The accelerator compounds, as well as the portland cement used in the shotcrete, will be found in the rebound material which falls to the invert of the heading. Since these compounds may be leached from the rebound material and carried by the drainage system, it may be necessary to install neutralizing or other water treatment facilities. Investigations may find that the final reaction with other compounds being leached from the mining operations may result in a more or less environmentally acceptable end product. USES OF SHOTCRETE General Uses Shotcrete, as a combination of cement, aggregate, and accelerator, is utilized for underground openings such as shafts, adits, haulageways, and service chambers for the following general purposes : (1) primary sup¬port; (2) final lining; (3) protective covering for excavated surfaces that are altered when exposed to air (the protective covering may be of a temporary or final nature); (4) protective covering for steel or wooden supports, rockbolts and rockbolt plates, heads, nuts, and other mats, including wire fabric, used to prevent rock-falls; and (5) as a lagging material in place of timber, steel, or concrete between steel or wooden supports. These applications can be grouped into three general use categories: shotcrete used as a rock sealant, shotcrete used as a safety measure, and shotcrete used as a structural support. Use as a Rock Sealant Thin applications of shotcrete can reduce or prevent slaking of shales or other rocks that are altered when exposed to the wetting and drying cycles created by mine ventilation circuits. While shotcrete may be effective in preventing such rock alteration, at the present time it is not as economical or efficient as other commercial sealants. However, if the sealant property can be incorporated into the structural support capability, the added contribution is usually helpful. Thin applications are not usually sufficient if the alteration of the

Jan 1, 1982

By Rolf Christiansson, Daniel Johansson, Urban Åkeson, Henrik Ittner, Mats Olsson

"This paper presents two recent studies on the extent of blast damage after excavation in crystalline rock. The Swedish Transport Administration and the Swedish Nuclear Fuel and Waste Management Company (SKB) are both under regulations to limit excavation damage during construction of tunnels. SKB is also required to limit the Excavation Damage Zone (EDZ), as this could be a potential flow path for radionuclides in the planned repository for spent nuclear fuel. Presented in this paper are investigations of blast damage from three tunnel sites, a road tunnel, an experimental tunnel in Äspö Hard Rock Laboratory and an underground subway depot. As expected the fractures resulting from the bottom charge are both longer and more frequent then those mapped in the column charge. The results show that the requirement to limit blast damage according to Swedish regulations was fulfilled for the column charge at the three studied sites.1 INTRODUCTION The Swedish Transport Administration (TRV) and The Swedish Nuclear Fuel and Waste Management Company (SKB) have both recently completed studies related the extent of blast damage from modern explosives after excavation. SKB studies focused on blast damage from pumpable emulsion explosives for underground construction (Ittner and Bouvin 2015) and hydraulic connectivity in the EDZ (Ericsson et al. 2015). TRV had a broader focus with different types of explosives including blasting for both road cuts and tunnelling with pumpable emulsion explosives. Investigations by means of geophysics were also conducted (Olsson et al. 2015). High demands on perimeter control and excavation damage is usually required for underground constructions with a long operation time, such as public tunnels for transport or underground repositories for nuclear waste. This paper presents the findings of recent Swedish studies and aims to discuss the topic in a broader context."

Jan 1, 2016

By D. A. Dahlstrom

With today's high energy costs per million BTU's, far greater emphasis is placed on increasing thermodynamic efficiency in the use of energy. America has long since discarded its previous golden age of "low cost energy" in the past ten years. Energy costs are now a very significant percentage of operating expense in industrial operations. Public utilities have felt the same influences of increasing costs in energy for the generation of electricity. Not only has the input energy expense increased seriously, but as pointed out by Blackmore in a paper, fuel costs were 53.4% of the total operating costs for American Electric Power Company.

Jan 1, 1983

By J G. Dunn, S M. Thurgate, A C. Chamberlain, P Franzmann, M Jeffrey, L J. Warren, G E. Poinen, T Williams

Gold has always fascinated mankind. From Tutankhamen's mask to the huge nuggets that have been found in the Australian outback, gold has quickened the pulse and fevered the eye. But in recent years, governments around the western world have shown a singular lack of interest in research into gold processing, with many programs being cut. There are some notable exceptions, fortunately, and this paper summarizes a large research effort that is well supported by the Australian government and the Australian gold industry. The AJ Parker Cooperative Research Centre for Hydrometallurgy is an unincorporated joint venture between the CSIRO Division of Minerals, Murdoch University, Curtin University of Technology and the Western Australian Department of Minerals and Energy. The Australian Mineral Industry Research Association (AMIRA) is the Parker Centre's broker for generic R&D contracts with industry. Each of the partners makes available staff, students and equipment to further the work of the Parker Centre, and the Australian Government provides additional funding. The Parker Centre is nearly five years old and has grown spectacularly in that time. There are now about 30 full-time-equivalents of effort from 50 scientists and engineers, as well as about 40 postgraduate and honours students. The fundamentals of the key operations in hydrometallurgy are studied in three programs: leaching (which includes pretreatment by roasting etc), precipitation (or crystallisation), and surface processes (which includes solid/liquid separation, adsorption, solvent extraction, etc). A large part of the Parker Centre's R&D is directed towards gold processing technology. In Australia, a dramatic increase in gold production, from about 30 to nearly 300 tonnes per year (1977-1997), has been made possible largely as a result of a brilliant metallurgical innovation, the carbon-in-pulp process. However, falling head grades eg 2.56 to 1.84 g(Au)/t over the last 10 years, and environmental concerns, are squeezing profit margins. There is increasing pressure to reduce costs, and the Parker Centre program is focussed on providing the scientific understanding required to do this. A selection of research highlights will be given, to indicate the depth and breadth of the R&D at the Parker Centre.

Jan 1, 1997

By I. J. Dowdeswell

Perspective Man is a model maker. Throughout recorded history man has-used models both to provide insights into the workings of the processes which surround him and as a step towards the eventual control of those processes. These models have covered the field from extremely large systems (solar and celestial. models) to infinitesimally small systems (sub-atomic .and atomic models). Models have been developed for social systems, ecological systems, biological systems and economic systems: all fields of human endeavour contain the fruits of this restless model-making. The Role of Models Since the evidence of mans' industry in formulating models is so abundant, it is worthwhile stating some of the reasons. Based on the simple definition that "a model is a convenient and useful representation of some facet of the 'real' world", then a model provides a means for: 1. Understanding the thing being studied. 2. Communicating that understanding to others. 3. Manipulating the thing being modelled. The common denominator implicit in these reasons is that- improved control is the. objective off all modelling or simulation work. Improved control shows itself either directly by the development of devices which perform the control functions or indirectly by improvement in the decision making process itself. For example, in a process plant, a suitable model of part of the process could lead either to the use of automatic control devices such as set-point controllers or to the implementation of instructions (pre-defined decisions) which permit the operator to better control the process. Typical process control systems use both of these since fully automatic control is restricted to processes where the required information can be effectively measured.

Jan 1, 1972

By D. A. Huggins

Column flotation is finding increasing use in the flotation of copper, molybdenum and other heavy metals and coal. Columns have proven operational, cost and metallurgical advantages which caused us to investigate their use in the proposed Escondida flowsheet. A comparative pilot plant test with 35 tons of ore showed that one column can replace three stages of cleaning and result in a significantly higher concentrate grade with no loss in recovery.

Jan 1, 1987

By J. M. Hird

By blending phosphogypsum with thickened mill clays, Texasgulf has successfully resolved the problems of gypsum disposal and reclamation of mined-over areas. In the process, clays are thickened to 10% solids through high rate thickeners, mixed with gypsum from a drained gypsum pile (75%) and a direct discharge from belt filters (25%), then pumped to mined-over areas. The blending of clays and the low pH gypsum yield a mixture with a pH of about 7. Dewatering is rapid to 40-45% solids within 3 months. The material spreads with very shallow slopes and within a year desiccation by high flotation ditching equipment is possible. The artificial soil is classified as a silty loam in texture, lacking only in nitrogenous nutrients. The soil material has proven to support many field crops including small grain, corn, alfalfa, and grasses. Sycamore, green ash, sweetgum and bald cypress have done well in 3 years of growth. The nitrogen source for tree growth will be made up through an alfalfa cover.

Jan 1, 1993

By Jerrold J. Marcus

United states reserves of oil and gas have been steadily declining while consumption of petroleum products has continued to increase. The nut result has been an ever increasing shortfall between supply and demand. This imbalance has been made up by imports of both oil and gas causing a strain on the United States Balance of Payments. To complicate the situation further, exporting nations have recently formed a cartel and dramatically increased the selling price of petroleum products. To meet U.S. energy demand, increased attention has been drawn to the production of synthetic oil and gas from coal. To date, considerable research has been conducted and is continuing on various processes for liquefaction and gasification of coal. Some of these processes are now in the pilot plant stage and at least one demonstration plant has been proposed. The coal conversion complexes envisioned will be very large, requiring substantial capital investments and abundant reserves of coal. Coal production to feed these proposed complexes has been estimated on the order of 75,000 tons per day. With the viability of these projects becoming economically attractive, the Office of Coal Research initiated a contract with Fluor Utah to determine and define the problems of surface mining coal at very high mining rates, under varied physical, geographic, and climatic conditions. The flow of recent events in the Middle East has created a greater sense of urgency for this study.

Jan 1, 1975

By Kenneth Savidge

With the recent demand for increased coal production there has been a corresponding increase in the horsepower of the shearing machines. The resultant increase in the machine haulage pull has heightened the incident of haulage chain breakage resulting in machine downtime, but more seriously the danger to face personnel. This paper discusses the application of chainless haulage to longwall mining and describes the systems currently available.

Jan 1, 1978

By Robin J. Hickson

The Ortiz Mine is operated by Gold Fields Mining Corporation, a subsidiary of Consolidated Gold Fields Ltd., one of the world's major gold producers. The Ortiz Mine is Gold Fields only heap leaching facility as well as being their first operating mine in the U.S.A. The hydrometallurgical processes utilized for recovery of gold and silver at Ortiz are discussed along with the several practical changes in operation adopted since start-up. Included are heap leaching by cyanidation, concentration of values on activated carbon, desorption, and the final electrowinning steps prior to shipment. Construction costs and pertinent technical data are shown.

Jan 1, 1981

By A. L. Miller, A. J. Chambers, P. R. Griffiths, D. A. Parks

"Diesel engines are one of the primary contributors to the presence of nano and ultrafine aerosols in ambient air and occupational environments. Exposure to diesel emissions has been shown to contribute to various adverse health outcomes of the pulmonary system and cardiovascular system. Currently diesel emissions in the workplace are monitored by way of collecting the aerosol onto filters, which are then sent to a lab for thermal-optical analysis using the NIOSH 5040 method, which measures elemental and organic carbon explicitly. This process can take days or even weeks, and workers can potentially be exposed to excessive levels of diesel particulate matter (DPM) before the problem is identified. To remedy this, researchers from the National Institute for Occupational Safety and Health (NIOSH) are seeking to develop a field-portable method for measuring elemental and organic carbon in DPM aerosols. In the current study, we investigated the use of Fourier transform mid-infrared (FT-IR) spectrometry, which lends itself more readily to implementation in a real-time system than do the thermal-optical analysis methods. We have demonstrated a method for measuring organic and elemental carbon in DPM for a broad range of organic carbon (OC) to elemental carbon (EC) ratios (from 50.3 to 0.8). The ability to handle a wide range of OC to EC ratios is critical given the evolving diesel technology. INTRODUCTION Respiratory illnesses are common in mining industry workers [1] and exposures to toxic aerosols such as DPM can result in serious respiratory illness [2]. Health studies show a correlation between workplace exposure to diesel exhaust and an increased risk of lung cancer [3-8]. The International Agency for Research on Cancer (IARC) has characterized diesel exhaust as a human carcinogen [9], and similar classifications have been made by the World Health Organization and the California Air Resource Board. A recent study [10] suggests that the risk of lung cancer is approximately three times greater for heavily exposed workers. When compared to other aerosols in the mine environment, the settling time of DPM is significantly longer than that of dust due to their small particle size (typically < 1 µm) [11]. Additionally, submicron particles (such as DPM) are deposited in the lungs much more efficiently than their larger counterparts such as dust [12]. Previous studies focusing on particle morphology [13] show that the largest mass contributor to lung disease in mining is elemental carbon, which provides a solid core onto which hydrocarbons are adsorbed. In accord with those findings the Mine Safety and Health Administration (MSHA) decided on submicron total carbon as a surrogate for monitoring diesel particulate matter in the mining environment."

Jan 1, 2018

By S. Guo

In this paper, a model for the resin anchor bolt system is developed in which the smooth bar is modeled by using one-dimensional truss elements and the resin annulus is modeled by using axisymmetric elements. These two submodels are combined together and then incorporated into the&apos; existing computer code ROOFBOLT. After this development, all of the components in the resin anchor bolt system including smooth bar, bearing plate and resin annulus can be correctly modeled.

Jan 1, 1995

By R. L. Grayson, R. C. Althouse, L. A. Layne, M. J. Klishis

Introduction The researchers combine a detailed microanalysis of accident data and roof bolting field observations to develop new and meaningful risk indices for the roof bolter job classification. These indices incorporate information that has not been used in traditional measures of risk. The significant parameters that these new indices incorporate are the total number of accidents occurring within a particular work activity, the amount of time a miner usually spends performing the work activities in which the accidents occurred, and the average severity of the injuries incurred in the accidents. Being specific for a particular job, they aid comparisons among work tasks performed in the bolting cycle. The indices&apos; specificity provide anew basis for reexamination of training and operational development of miners for specific jobs. Microanalysis The roof bolting microanalysis was performed by examining the empirical data and written summaries for all bolting accidents reported in the West Virginia Safety Information System (WVSIS) for the years 1983-1987. The WVSIS database contained more than 15,000 accident narratives. The microanalysis of bolting accidents covered 2083 reported personal injuries (RPIs). This large number of injuries, performed at an industry-wide level, provides a broad picture of the nature of roof bolting injuries. The analysis focuses on the activities associated with the cyclical routines of the roof bolting process. For this analysis, roof bolting tasks were categorized into work routines based on the sequence of work activities performed by roof bolters. Four work routines were identified within the overall bolting cycle. And these routines comprised 70% (1217) of all roof bolting accidents at the face. The routines include: face area preparation; tramming, positioning and setting the automated temporary roof support (ATRS); drilling holes; and installing bolts. The types of injuries most common within a routine and the average severity of those RPIs were also identified. Table 1 gives a breakdown of the percentage of accidents by the bolting routines. Another 19% of the roof bolting RPIs cannot be classified in a particular routine because of the vagueness of the narratives. However, it was clear that these accidents involved drilling holes or installing bolts. These results are consistent with previous research. It identified drilling and bolting, followed by tramming, as the most frequent sources of injuries (Helander, Krohn & Curtain, 1983). [Table 1-Accidents by bolting routines at the face Accidents Bolting routine Percent Number Face area preparation 18.2 222 Tram, position, ATRS 23.3 284 Drilling holes 34.2 416 Installing bolts 24.2 295 Total 1217] Roof bolter operators were involved in 82% (1706) of the 2083 accidents. The RPIs incurred by classified roof bolters occurred largely on working sections (95%) and at the face area on the working section (75%). Approximately 23% of the 1706 roof bolter RPIs occurred during tasks which were not part of the bolting cycle. These included belt utility work, providing supplies and section moves. Miners in other job classifications who were involved in roof bolting accidents accounted for the remaining 18% of the 2083 roof bolting RPIs. Among this group were section utility men and general laborers (41%), section machine operators (38%), and electricians and mechanics (11%). Another 9% were performing on-section supervisory functions. Face area preparation Face area preparation work led to a substantial number of injuries, although it accounted for the lowest number of injuries of the four routines. Several tasks were associated with the injuries incurred in this routine. Table 2 shows the percentage of injuries associated with face area preparation. [Table 2- Accidents occurring during face area preparation 26.6% Setting temporary and supplemental supports 24.8% Scaling roof and ribs 21.2% Installing ventilation devices 15.8% Handling supplies and materials 11.6% Miscellaneous tasks] The injuries commonly involved overexertion and &apos;struck by&apos; falling coal and rock. Handling materials often led to overexertion injuries. Nearly 66% of the scaling-related injuries and about 33% of the injuries incurred during the setting of temporary supports involved &apos;strikes&apos; by equipment, materials, top and rib. Tramming, positioning and setting the ATRS During tramming operations, workers were often struck by components of the machine and hit by loose roof and rib. Poor footing also led to slips, sometimes against the moving machinery. Table 3 gives a breakdown of accidents in this routine. Control levers were a significant problem in this routine.

Jan 1, 1993

By R. L. Frederking

Geological remote sensing is, "....the study of the Earth utilizing electro-magnetic radiation (EMR) which is either reflected or emitted from the land surface in wavelengths ranging from ultra-violet (0.3 micrometre) to microwave (3 metre)."1 Selected examples which illustrate a variety of successful geologic applications include lithologic mapping, 2 engineering soils mapping,3 tectonic interpretation,4 and mineral and petroleum exploration.5 This report examines the applicability of remote sensing for bauxite exploration in northeastern Mississippi. Specific objectives were to map lithologies of northeastern Mississippi from LANDSAT imagery, to determine the utility of LANDSAT imagery for delineating and mapping known deposits of bauxite, and to discover and map new bauxite deposits.

Jan 1, 1977

By T. Harrison

Surface coal mines in West Virginia are receiving stringent NPDES discharge limits for total recoverable selenium. With limits in the low parts-per-billion range, selection and implementation of proper sample collection and analytical methods are imperative for quality assurance and control and for consistency in results. Given the typical oxidized form of selenium in the water, the low limits and the large and variable flow rates from the watersheds, end-of-pipe treatment is difficult and cost-prohibitive to implement. Discharge locations in the remote and steep terrain exacerbate the problem. To evaluate options for end-of-pipe treatment at a Patriot Coal Corporation surface mining operation in West Virginia, CH2M HILL performed wastewater characterization for a range of key constituents and selenium species at three outfalls for selection and preliminary sizing of appropriate treatment processes. A preliminary evaluation of base and wet-weather flows was done to understand flow variability considerations for discharges. A conceptual evaluation of technologies to treat selenium to permitted levels was conducted in con-junction with order-of-magnitude life-cycle cost estimates.

Jan 1, 2010

By Stanley Dempsey

INTRODUCTION The mining industry has been under- going a significant restructuring for the past several years. Some firms have been liquidated. Some have been merged with other firms. A number of mining divisions of larger firms have been spun off, in some cases in leveraged buyouts by management. Recently, there have been a number of spin outs of gold subsidiaries. There are also a number of start-up situations where new firms are emerging as significant gold producers through mine development or acquisition. This restructuring has created an attractive market for specialized mining finance firms, and a number of firms have recently entered that field in the United States. These firms provide financial advisory and valuation services to mining firms and project developers, and access to venture capital. In some cases, they invest for clients or for their own account. I have been asked to describe how our firm works, and what kind of information we expect to receive when mine developers seek our assistance in financing a project. HOW WE OPERATE Denver Mining Finance works for both mine developers and investors. We also provide expert advice on mining issues to governments and to firms who are in litigation over mining issues. A lot of our work involves valuing mineral interests for various purposes. Our principal expertise is in the technical, commercial, and financial area. We help put mining deals into shape commercially so that they can be financed, and we help investors get into mining deals that are commercially sound. We work on projects, but we also advise mining firms on the structure of their business and how to make the most out of one or several mines that they might own. In addition to our work for clients, we are also prepared to invest in mining projects for our own account, and to recommend gold properties for acquisition by our parent company, Royal Gold, Inc. We are, to some extent, a venture capital firm, in that we sometimes work with projects that are not "bankablerV1 and are prepared to invest in attractive early-stage situations in mining. However, I want to emphasize that our principal focus is on development of commercially attractive mining projects that can be brought into production in the best possible financial terms. If we can make a project qualify for a project loan from a commercial bank, we will not advise the developer to use high cost venture capital. For the purpose of this paper, I will focus primarily upon our functions with respect to development of precious metal projects. In a typical case, a firm with an advanced-staged project approaches us for help with financing the final feasibility study, and construction and operation of a mine. In some cases, the developer has already developed a financing plan and wants only our access to investors. If we agree that the project is sound and that the financing scheme will be attractive to investors, we will help the developer reach investors on a commission basis. In such cases, we are particularly insistent that the financing plan and our participation meet all regulatory requirements, particularly compliance with state and federal securities laws. In most cases, however, the developer asks us for advise both on how to structure the financing, and how it can be implemented. Here we work for fees based on hourly rates for advisory work,

Jan 1, 1987