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By S Shafiee, N Abbate

The evaluation of mining projects requires a methodology that will give flexibility and manage the existing uncertainty within the projects. The discount cash flow (DCF) and other traditional evaluation approaches, which are widely used in evaluating a significant number of mining projects, have simply assumed that the main variables remain constant in their evaluation; elements such as discounted rate, mine life, operating cost and production rate. The DCF ignores managementÆs flexibility to adapt and reforecast and revise decisions. Real options valuation (ROV) is one of the modern evaluation methodologies that provide a tool to adapt and revise mining projects under uncertainty and future variables movements. ROV brings more variables into the evaluation model compared to DCF and assumes them as uncertain and dependent. Finally, ROV provides a range of solutions that can assist in managing this flexibility.This paper endeavours to compare ROV and DCF for mining projects comprehensively and applies these two techniques in the model. The paper shows that ROV will be inclusive of extra value in mining projects due to variables not allowed for, or even ignored, when the DCF model alone is used. One of the significant advantages of the ROV method is being able to evaluate mining projects under different scenarios from the inception of the projects. Furthermore, ROV gives the ability to evaluate the mining project while allowing for abandonment, temporary suspension, or expanding the mining project. In other words, the ROV evaluation process creates an analytical environment, which allows for optimisation of the mining plan within the mining project, as well as the ability to change the capital structure dependant on existing circumstances over the life of the project. The ROV is a new evaluation method that can add value in mining project analysis and offers opportunities to amplify gains, or to mitigate losses. This paper also discusses some of the reluctance to use ROV instead of DCF in current project evaluation.CITATION:Shafiee, S and Abbate, N, 2012. Now, this is the time for mining companies to choose - Real option valuation or discount cash flow, in Proceedings Project Evaluation 2012 , pp 225-234 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By Connell JE

The Worthing Mine near Hallett Cove. 20 km southwest of the cite of Adelaide, belongs to Aus- tralia's first mining era, which took place in South Australia between 1841 and 1851 (Figure 1). Oper- ations began in 1849 only six years after the com- mencement of metal mining in Australia at Glen Osmond. Although not as historically significant as Glen Osmond (1841), or the much larger copper mines of Kapunda (1844) or Burra (1845) its importance lies with its Cornish enginehouse and chimney. The Worthing enginehouse, built in 1851-1852 is the oldest remaining in Australia and certainly the most significant relic of Australia's first mining era. Six other stone enginehouses were built during that period: at Kapunda in 1848 and 1850: at Burra in 1849, 1850 and 1851; and at Tungkillo in 1849. All of these houses have long since dis- appeared although the foundations of one (Kapunda, 1850) still remain. The significance of the Worthing site is enhanced by its magnificant environmental setting in the bare, steep valley of Field River. Currently (1986) the Worthing Mine is the only site within the City of Marion which is on the Register of State Heritage Items. The site is also included in the Classified List of the National Trust of South Australia and on the Register of the National Estate.

Jan 1, 1987

By D Baas, D Bennett

This paper describes how Brisbane-based PanAust Limited develops process control strategies that are implemented at all operations and are used in functional descriptions for plant upgrades and new projects.The process control strategies are determined by operating management philosophies designed to maximise returns from the company’s assets.The approach is endorsed in the project planning and design phases to ensure facilities and equipment that form the major production assets are fit for purpose and capable of enabling the production managers and operators of the projects to maximise shareholder returns.PanAust’s process control approach has been to develop sets of process control standards which focus on two key areas. The first area covers hardware requirements and architecture, software objectives, control models and individual loop tuning methods. The second area defines control room layout, graphic standards and the alarm philosophy. The application of these standards in a new plant or upgrade decreases the time required to achieve design capacity and optimal performance.The PanAust process control strategy changes the operator’s role from one that controls a number of individual loops to one that sets the control objectives of the processing plant. To achieve optimal performance, all the process areas of the plant are analysed to identify opportunities to improve throughput, recovery and stability. Once a key opportunity is identified, a process control strategy is developed which defines the objective of the control, its functionality and how an operator will interact with it. After development of the control model the operators assist engineers to test and debug it. Once the model is robust, it can then be duplicated throughout the group and developed as a group process control standard.CITATION:Baas, D, Bennett, D and Walker, P, 2014. Developing process control standards for optimal plant performance at PanAust Limited, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 325–334 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By Bhattacharyya A. K

A major constraint on sustaining high rates of production in the collieries of the Southern Coalfield of New South Wales is the inability to develop panels fast enough to match the rates of extraction. This inability is particularly crippling in the case of retreat longwall mining and is due to nearly half the time in roadway drivage being spent on strata control operations such as roof support.Increased rates of roadway drivage and significantly improved roadway stability can be achieved by the application of yield pillars between parallel roadways. These pillars are designed to yield immediately upon formation and transfer the damaging roof loads away from the immediate vicinity of the roadways. Since the width of the yield pillar is the key to their successful application, it was determined through the Yield Pillar Experiment conducted by Kembla Coal and Coke Pty Ltd at West Cliff Colliery.Three experimental headings, each nominally 5.5 m wide and 2.8 m high, were driven to form two tapering pillars. The width of these pillars progressively decreased from 24 m to 3 m over a length of 154 m. The convergence between the roof and floor of the headings measured at various cross-sections corresponding to predetermined widths of the pillars are analysed in this paper to evaluate the stability of the tapering pillars at the different widths.The width of the yield pillar in a three heading development layout at West Cliff Colliery was determined to be 7.5 m.

Jan 1, 1995

By C Smith, R I. Maczkowiack, P D. Erskine

Open cut coal-mining has been conducted in the Bowen Basin region of central Queensland for almost five decades, and has disturbed an estimated area of 140 000 ha of agricultural land until 2011. Approximately one-third of the area disturbed by mining has been rehabilitated to pastures or bushland. However, none of the rehabilitated land has yet been assigned a specific end-use. This research project develops an approach for assessing end-use risks for the regionÆs mined land, and develops risk assessment models for selected end-uses. First, a web-based survey of stakeholders was used to identify risks to be assessed. The risks identified were surface erosion, subsurface erosion, bushfires, weeds and feral animals. The survey also identified possible end-uses of bushland and grazing. Second, conceptual risk models were developed based on the risk assessment concepts of likelihood and consequence specified in the Australian and New Zealand risk assessment standards. Likelihood was modelled using site characteristics and management factors that influence the occurrence probability of risks (eg surface erosion), while consequence was modelled using a set of site condition indicators and condition thresholds (changes in root-zone water-holding capacity, soil erodibility, vegetation ground cover and soil organic matter and transition probability to a non-preferred ecosystem type).The factors influencing likelihood and consequence for each risk have been integrated using Bayesian networks. The next step in model development is to parameterise the Bayesian networks using existing equations, empirical datasets, or expert opinion where data are not available. The parameterised models will be used to assess grazing and bushland end-uses against erosion, bushfire, weed and feral animal risks for rehabilitated mined land sites, with the purpose of identifying the relative risks associated with each end-use, and the landform design specifications and land management practices under which end-use risks are minimised.CITATION:Maczkowiack, R I, Smith, C and Erskine, P D, 2012. Risk assessment models for post-mining land use, in Proceedings Life-of-Mine 2012, pp 33-42 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 10, 2012

By Hawkins L. V, Seedsman K

A combined reflection seismic and magnetic survey off the south coast of New South Wales has revealed six distinct reflection horizons within the Lower Triassic- Upper Permian sequence, and has enabled the upper part of the Illawarra Coal Measures to be mapped in considerable detail. Large magnetic anomalies in the eastern half of the survey area appear to originate in the Gerringong Volcanic Sequence which forms the magnetic basement in this survey. Small residual anomalies in the western half of the area can be correlated with small scale faulting and folding in the uppert part of the Illawarra Coal Measures, as revealed by the seismic reflection survey. A synclinal axis striking at approximately 55¦ has been mapped near the western margin of the survey area, and areas of faulting and folding have been outlined by com- bined analysis of seismic and magnetic results.

Jan 1, 1969

By J Czerwinski, M Kasper, M Wyser, N Heeb

The VERT project 1993 - 1998 laid the technical foundation for curtailing the emission of fine particles from diesel engines at Swiss underground workplaces. The targeted maximum was 100 ¦g/m3 EC. Extensive laboratory and field investigations demonstrated that this specification is only attainable with modern diesel particulate filter (DPF) systems that almost eliminate particles in the entire lung penetrating size range from 20 nm to 2.5 ¦m. In January 2000, Switzerland mandated compulsory particle filters in underground workplaces, particularly in tunnelling, irrespective of engine age, size and type. After the implementation, the particle concentration in the respiratory air was below 40 ¦g/m3 EC, compared to earlier values of up to 750 ¦g/m3 EC. Deployed DPFs have proven filtration rates of 99 per cent in the entire size range of alveoli intruding particles. The DPFs are as durable as the engine, suffer no ageing and require minimal maintenance. The failure rate is below three per cent annually. Of the 6000 retrofitted construction machines in Switzerland, about 400 are deployed underground. Prerequisites for this quality are a sophisticated certification procedure, electronic monitoring of DPF operation and meticulous periodic exhaust gas inspection of the engines.

Jan 1, 2005

By R Lachenicht, J Player, A Thompson, E Villaescusa

Kanowna Belle Gold Mine is a deep, high-stress, sublevel open stoping mine located near Kalgoorlie. Seismic activity during the development cycle presented problems, including concerns regarding the exposure of personnel. A number of seismic management systems were developed and tested to monitor seismicity and control the risk. It was recognised that a dynamically capable reinforcement and support system was required to be installed as part of the development cycle to reduce the risk of exposure of the underground workforce to uncontrolled movement of rock. The performance of a new Garford Dynamically capable bolt was measured in tests performed by the Western Australian School of Mines (WASM) at their Kalgoorlie Dynamic Test Facility. Detailed descriptions of the facility and data processing were reported by Player, Villaescusa and Thompson (2004) and Thompson, Villaescusa and Player (2004). The development of the Garford Dynamic bolt is described and dynamic testing results are presented and evaluated. This bolt was implemented in the mining cycle following the testing program; the observed performance is described and assessed in this paper.  

Jan 1, 2008

By Bhattacharyya A. K>

The Pemali Open Pit Mine is situated in a small island called Bangka in Indonesia. It produces approximately 165,000 m3/year of tin ore with an average grade of 3.67 kg/m' of tin from a primary deposit. The deposit occurs at the rim of a granitoid intrusion within sedimentary beds. The rock formations, all extremely weathered, and the overlying alluvium, are exposed to a rainfall exceeding 3m/year. Serious slope stability problems are experienced at the mine, despite using overall pit slopes of 20¦-29¦, the latter resulting in a stripping ratio of 4:1. This paper outlines a computer based back analysis of a major slope failure involving some 250,000 m' of material which occurred on the west wall of the pit in February, 1984. The findings from the analysis, together with other information, are used to examine the stability of the east wall of the pit, where tension cracks developed later. The results indicate that the large influx of water was the most significant cause of such slope stability problems and a more intensified water management programme would be beneficial.

Jan 1, 1989

By Y Li, S Ramazan, E Topal

A mine waste dump progression plan can provide a clear outlook of the mining operation. To produce such an output requires detailed placement schedule of the mined material, including the volume (or tonnage) and the allocated dumping location. However, current practise mainly focuses on the ore production, over-simplifying the waste material scheduling. As a result, a rock dump is often treated as a single point in long-term planning, making it difficult to predict the waste dump progression pattern over the life-of-mine. Without such a guidance, it is almost impossible to carry out progressive rehabilitation on the waste rock dumps. The lack of dumping schedule could cause delay in development construction, ie tailing storage facility and run-of-mine pad. Other downstream effect due to the over-simplification is inaccurate estimation of required truck hours, which could have huge financial impact on the operation.In this paper, mixed integer programming (MIP) models of different objective functions, ie maximise truck productivity by minimising the overall haulage distance, minimise required truck deviation between adjacent years, and a hybrid between the two objectives, are utilised to generate the long-term optimum rock placement schedules under the criteria of satisfying site specific conditions. All three MIP models are implemented in a large scale open pit mine. The numerical solutions from the models forms three different rock placement schedules, based on which, the yearly truck requirements are easily calculated and compared. The graphical results show the three corresponding waste dump progression patterns over the life-of-mine, providing the optimised long-term forecast of the operation.CITATION:Li, Y, Topal, E and Ramazan, S, 2014. Optimising the long-term mine waste dump progression and truck hour schedule in a large-scale open pit mine using mixed integer programming, in Proceedings Orebody Modelling and Strategic Mine Planning Symposium 2014 , pp 335–344 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 24, 2014

By J Wen, P Hou, W Yu, M Hu, Z Jiang, C Bai

Vanadium titano-magnetite (VTM) is one of the important iron ore resources in the world. High viscosity and low fluidity are the basic characteristics of hot metal containing vanadium and titanium during the ironmaking process. Clarifying the influencing mechanism of the melt viscosity would be a significant issue for the high efficiency smelting of VTM. In this paper, a self-developed melt viscometer based on the principle of torsional vibration theory was employed to measure the viscosity of hot metal accurately. Simultaneously, the thermodynamic calculations and some modern detection methods were also used to investigate the precipitation behaviour of high-melting-point phases in hot metal containing vanadium and titanium. The measuring results show that the viscosity of molten iron gradually increases with the increase of titanium content when the mass fraction of titanium is between 0.09 wt per cent – 0.50 wt per cent. Meanwhile, the viscosity of the hot metal was affected significantly by the vanadium content. When the vanadium mass fraction was higher than 0.30 wt per cent, the viscosity of hot metal increased sharply, which will have a serious impact on the fluidity of the hot metal. Furthermore, it was revealed by thermodynamic calculations that an increase in titanium and vanadium content would result in the precipitation of high melting point phases such as TiC, TiN, VC, and VN in the molten iron, ultimately resulting in a decrease in its fluidity. Meanwhile, it was confirmed by Scanning Electron Microscope (SEM) observation that the precipitates in the hot metal were compounds consisting of V, Ti, C, and N elements, which agrees well with the thermodynamic analysis results.

Aug 21, 2024

By K Guilfoyle, A Robertson

In the mid-1970s, trucking ore from 400 m depth to the surface was perceived to be the practical and economic limit for metalliferous underground mines. Improvements in truck design and decline development resulted in the economic depth of haul exceeding 600 m by the mid-1990s. Today, mine operators and contractors are planning to use trucks for ore haulage from depths in excess of 1000 m. The authors of this paper estimate that there are in excess of 300 diesel-powered trucks operating in mines in Australia, and that by the year 2005 more than five per cent of these trucks will be æroad trainsÆ (ie trucks towing powered trailers or truck-trailer combinations). This paper examines the road train concept, presents cost and performance data and describes the advantages and disadvantages of the road train system as well as proposing the types of applications for use of road trains in Australian metalliferous underground mines. Truck performance is based on payload and average speed (expressed as tonnes x kilometres per engine hour (t km/h)). A road train with a powered trailer has a large payload capacity and two engines to provide a high ratio of power to gross weight. Thus it is possible to exceed 300 t km/h per cycle for an average haulage gradient of 1:9 compared to 250 t km/h for conventional articulated dump trucks (ADTs). It is likely that road trains in excess of 100 t capacity will have application for level ore haulage at large mines in Australia.

Jan 1, 2002

By E McLean

The decision making check-list and hierarchy of information for process and plant design is generally wide-ranging and complex. The nature of grades, mineralisation and ore types in an ore body, its mine development sequence, and the body of results from metallurgical and physical test work present complex and competing influences on flowsheet development, values for design, equipment selection, plant efficiencies and operating strategy. The challenge is how to manage all these variables, to understand their impacts on performance, and how best to provide a cost-effective plant design and robust process that meets daily/weekly/monthly operating objectives. Throughput, production and grade or product specifications need to be met. The ore body is not average; its range of metallurgical and physical characteristics may be moderately to highly variable. This paper assesses some of the key competing influences and conflicting issues in design and equipment selection, and their effect on production and performance expectations.

Aug 8, 2011

By Y Durkheim, P Saunier, L Ameglio

"In the last decade Afitex developed the Draintube™ geocomposite, which provides simultaneous drainage and waterproofing functions. This new type of drain tubes planar geocomposites (DTPG) differs from other geocomposites as the drainage core is composed of multiple corrugated and perforated pipes instead of biaxial or triaxial nets. It is furthermore associated with needle-punch stitched layers of non-woven geotextiles, which act either as capillary mediums or as filters.In this paper, the structure of the Draintube™ drainage composite is presented along with its key properties and the drainage mechanism associated with its particular structure.The relevance of this kind of structure is then reviewed based on past and current laboratory bench evaluations and field installations for mining applications such as the covering of acid rock drainage (ARD) tailings for the Central Manitoba Mine (Canada) site-rehabilitation; and as a pregnant solution collection layer in heap leach pads.Some of the demonstrated critical advantages of Draintube™ in the mining industry are as follows: reduction of the thickness, hence lower volume of granular drain layers improvement of fluid and gas collection and reduction of the hydraulic load reduction of secondary collector network mechanical protection of the sealing membrane fast and economical installation of interlifts stability under extreme conditions (compression, temperature, pH) increased stability of entire covering system and reinforcement of protection of dykes filtration of the covered material customised drainage positive connection of the geocomposite to collector pipes enable leaks detection (using a conductive textile layer) with an electrical test.CITATION:Saunier, P, Ameglio, L and Durkheim, Y, 2015. Tubular drainage and lining geocomposite for mine tailings and heap leach pads, in Proceedings Tailings and Mine Waste Management for the 21st Century, pp 297–304 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jul 27, 2015

By W D. Erskine, M J. Saynor

Ranger Uranium Mine, surrounded by Kakadu National Park is located in the Alligator Rivers Region (ARR) in the wet-dry monsoonal tropics, 250 km east of Darwin, Northern Territory. A trial landform (TLF), measuring approximately 200 m by 400 m (8 ha) was constructed during late 2008 and early 2009 by Energy Resources of Australia (ERA), adjacent to the northwestern wall of the tailings storage facility at the Ranger Mine. A collaborative research program involving the Environmental Research Institute of the Supervising Scientist (eriss) and ERA, has been underway to measure long-term (five to ten year) rainfall, run-off, sediment and solute losses, seepage and vegetation establishment on the TLF (Saynor et al, 2012; Lowry et al, 2014). This paper reports on bed load losses from four erosion plots built on the TLF. These were achieved by physically isolating approximately 30 × 30 m areas from the surrounding landform on three sides with sidewalls along with an open polyvinyl chloride (PVC) pipe on the downslope side. Each plot was instrumented with a range of sensors. Two plots, 1 and 2 were constructed on waste rock material, while plots 3 and 4 were constructed on waste rock mixed with approximately 30 per cent lateritic material. Plots 1 and 4 had tube stock planted in early 2009, and plots 2 and 3 were initially planted by direct seeding in July 2009 and were infill planted with tube stock in January 2011.CITATION:Saynor, M J and Erskine, W D, 2016. Bed load losses from experimental plots on a rehabilitated uranium mine in northern Australia, in Proceedings Life-of-Mine 2016 Conference , pp 168–171 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 28, 2016

By L Dyer, A Keith, G D. Corder

As mining activity moves to remote and less developed locations globally, a holistic approach to mine development is fundamental for achieving a balance between strong financial returns and corporate social responsibility and transparency. Key inter-related fundamentals such as social licence to operate, life-of-mine operational planning, minimising environmental impacts and, most importantly, attractive investment returns for the mining company all contribute to the viability of any new mining project.However, the typical practice in the mining industry is often to treat environmental and social/community aspects as separate compliance issues that are dealt with at minimum cost and disruption to the project and resulting operation. This often results in less than optimum environmental and social outcomes, and presents considerable liabilities at the time of closure when rehabilitation programs continue to require funding when all revenue has ceased.The five capitals model seeks to identify each of the key contributors to sustainable development as financial, manufactured/physical, social, human and natural to formulate a type of triple bottom line approach balancing these often competing project factors. The SUSOP® sustainability risks and opportunities framework, developed by the mining industry, bases its approach on the five capitals model and proposes an approach that breaks down enterprise silos to identify innovative solutions for life-of-mine sustainability. This framework has been developed with the nature of mining projects in mind in order to produce approaches and outcomes relevant throughout the life cycle from the planning phases, through project design and construction into operation and closure.This paper argues the need for a more holistic approach to the development and operation of mining projects, and presents case studies where a holistic approach has been applied, in whole or part, and discusses the lessons learned from these case studies.CITATION:Corder, G D, Keith, A and Dyer, L, 2014. A capitals based approach – leading innovation in planning for life-of-mine sustainability, in Proceedings Life-of-Mine 2014, pp 499–512 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jul 16, 2014

By M Warnken

Major cities are not only the focal point for AustralianÆs work, leisure and homes, they also are the focal point for the flow of resources into the built environment, motor cars and transportation and urban consumables. The steady increases in æstockÆ and waste generation, in line with GDP growth, means that cities will become the mine sites of the future if the inherent value is recovered from these materials at end of life. The urban waste stream can be characterised as containing approximately nine per cent hydrocarbon-based materials; 57 per cent biomass-based material; 28 per cent fully mineralised materials that are inert, five per cent metals and less than one per cent of problematic materials that are potentially hazardous and toxic. In order to convert these wastes into value added inputs into the economy, a number of technological interventions are required. These æurban waste mining techniquesÆ revolve around source separation and material streaming. One issue that needs to be overcome when determining which mining technique to implement, is identifying the option that will deliver optimal value, both from a financial and a sustainability perspective. The difference between embodied energy and calorific value is a case in point. Highest net resource value (HNRV) is a concept that can assist in choosing between different resource recovery options. The assessment can be done at a strategic level, or can be used to work out material specific issues. For example, used tyres can be recovered for their energy content at an approximate cost of $120 per tonne, whereas mechanical processing of used tyres can deliver a net benefit of $192.

Jan 1, 2006

By Robinson T

The paper describes a spreadsheet system that enables selection of projects and companies that meet the user's corporate exploration and/or acquisition philosophy. A regularly maintained commercially available database has been used as the basis for this system. It provides an easily accessible efficient com- prehensive search method. The technique enables ranking by various criteria, both technical and financial, to provide groups of projects/companies that are of interest. Initially, target size parameters such as reserves, production and mine life are applied together with geological criteria such as age and deposit type; the significance of the targets in the context of the Australian gold industry is addressed.

Jan 1, 1988

By R K. A Taylor

The growth in production of beneficiated ilmenite products has been one of the most significant trends in the titanium feedstock industry over the past 30 years. In this period, the production of titanium slag and synthetic rutile has grown five-fold to the point where these products represented 56 per cent of total feedstock production in 2000. Additional production capacity is being proposed as the core component of new feedstock supply projects presently under consideration. A high proportion of these products is based on technologies for which the inherent quality of the is an essential factor. Location specific factors also play a large part in determining the cost of production. As the demand for such products grows, and the availability of favourably located sources of ilmenite of suitable quality declines, it can be expected that existing beneficiation technologies will become increasingly constrained. Existing beneficiation technologies, and those which have been developed, but are not yet commercially applied, are reviewed. Future issues which are likely to impact on the cost effectiveness of these technologies, or the quality of final products, are identified. These factors suggest directions for development of ilmenite beneficiation technologies to achieve economic production of the quality of feedstocks which will be demanded by the TiO2 pigment industry in the future.

Jan 1, 2001

By P Toor

Due to the high energy consumption of milling, it is desirable to improve the efficiency of this process. One alternative to reduce energy and material consumption while optimising production yield in mill operation is through balanced design and selection of liners. Over-design of liners leads to increased life but at a cost to grinding performance, a relationship which to date has not been studied closely. This paper provides a description of this process of liner life cycle optimization and presents initial results from the first of two life cycles being studied for a 32 foot (ft) SAG mill. The use of commercially proven high resolution laser scanning based liner shape information provided by the MillMapper® software correlated with well controlled site surveys at various points in the liner life was used as the basis for comparison. The survey data was modelled in JKSimMet to provide direct comparisons of mill performance. This potentially provides a methodology for the design of liners that maintain a favourable shape for the majority of liner life, yielding desirable production parameters such as lower specific energy consumption and higher throughput, while at the same time maintaining practical liner life cycles.

Aug 8, 2011