Search Documents

By A. Rajan

"Drawing upon the experiences of a gold extraction plant startup in the Southern Pacific, this paper will describe the importance of the commissioning phases to the project outcomes to achieve early target production despite an overall time compression to attain full plant production. Some of the highlights of the paper include: impact of roles played by the Owner’s construction and operations representatives during project commissioning, the formation of a capable and competent “Mod Squad,” availability of trained operating personnel, control over work priorities and the scope of work needed to bring the plant to safe initial operations. The commissioning team comprised subject matter experts skilled in process technology supported by “generalists” thoroughly conversant in overall plant operations. The merits of a structured team approach to brainstorm and resolve commissioning challenges as opposed to direction from individual subject matter experts is discussed. IntroductionStartup or commissioning is a unique period in the life of a project. Each stage of a project-exploration, feasibility, design, construction, commissioning, initial operations and continuing operations-requires special talents, know-how, and practices. Each stage makes particular demands of the people involved. Initial operations are no exception.Having experienced the 1997 startup phases of oxide and sulfide facilities for a gold extraction plant at a remote island in the Southern Pacific, I can attest to the many challenges and rewards. Commissioning for both facilities was extremely successful and brought the entire project on line well ahead of the targeted completion dates. Using this specific project as an example, this paper will highlight some of the key features of project commissioning. In this paper, the term “pre-commissioning” denotes all activities that lead to mechanical completion; “commissioning” occurs when feed is introduced; and “initial operations” are defined as the duration when operations accepts the system/facility and takes over."

Jan 1, 2000

By C. O. Swanson

"OUR INTEREST in estimates of world reserves of lead and zinc is focussed mainly on the information they give about the sufficiency of metal supplies for the future. However, we soon realize that the estimates can be interpreted in several different ways. Accordingly, it is necessary to have some under-standing of the elements represented by a compilation of world re-serves, and we will start by examining the accuracy of the estimates and what they attempt to measure.Variations in Estimates of the ReservesIf we study the estimates of world reserves that have been published in recent years, we note immenediately that they vary over a considerable range. For example, an article by Shea in 1947 gave world reserves as about 36 million tons of lead and 60 million tons of zinc. Shea did not in elude the United States but I have added to his totals the estimates made by the Bureau of Mines for that country in arriving at the foregoing figures. For approximately the same date, the American Zinc Institute and the Lead Industries Association reported world reserves as about 50 million tons of lead and 77 million tons of zinc. A comparison of the two sets of figures shows a mean variation of 30 per cent. For individual countries the difference between estimates can be even larger. A few years ago the estimate of Canada's reserves made by the United States Bureau of Mines was 7.4 million tons of lead and 14.0 million tons of zinc, while the Gordon Commission reported 1 O. 7 million tons of lead and 26.0 mil-lion tons of zinc. In this case the mean variation was 55 per cent."

Jan 1, 1960

By R. S. Simkus, J. R. Egan

"Changes have recently been applied to the Sullivan Concentrator lead and zinc circuits to treat fine-grained ores which make-up the majority of ore reserves in the mine. Pilot plant test work conducted in 1990-91 indicated that concentrate grades would be substantially improved by reducing the particle size (P,0) of the lead from 38 to 15 µm and the zinc from 45 to 24 µm.Circuit revisions involved installation of major new equipment including: two GUO kilowatt Vertimills for regrinding, a 4 metre diameter column flotation cell and a 4 metre diameter hyperbaric pressure filter for dewatering. Duties of the existing regrind mills were reassigned.IntroductionThe Sullivan ore body is a massive sulphide deposit consisting of fine grained mixtures of sulphides, sometimes inter-banded with country rock and varying widely in their content of lead, zinc, iron and silicates. Principal economic minerals are marmatite and galena. Iron is mainly present as pyrrhotite (85%), and to a lesser extent as pyrite (15%) .The orebody has been actively mined since 1923, with 1992 ore reserves estimated at 15,800,000 tonnes with an average grade of 4. 7% lead and 7. 9% zinc. Current plans call for treatment of 1,600,000 tonnes/year, (7,000 tonnes per operating day), with flotation feed grades of 5.9% lead, 10.1% zinc, and 22.0% iron."

Jan 1, 1994

By M. Pourkani, M. Karga, Samid Banis, Andre Laplante, G. Langari-Zadeh

"The Sarcheshmeh mine processes 40,000 t/d of ore grading 0.9% Cu and 0.035% Mo. Grinding is effected in single stage ball mills using 80 mm forged steel balls, with an average consumption of 850 g/t. One of its 5 m diameter, 8 m length ball mills was emptied to measure the ball size distribution. The broken balls were first separated from the total charge, and the remaining balls classified into five size intervals of +7O mm, -70 +60 mm, -60+50 mm, -50+40 mm, -40 mm.The charge was composed of 280,534 balls (excluding broken balls) with a total mass of 305,180 kg. It was found that 4.0 % of the balls were broken; the size distribution of the charge was also markedly different from the desired one, in particular for the small-sized balls. For instance, 9% of the balls were expected to measure 2.54 to 3.18 cm in diameter, but none was found. On the other hand, the amount of top size balls was 30% higher than expected. The radial hardness of balls, which was determined by cutting the balls in halves, showed that the hardness sharply drops when the balls become smaller than 65 mm. The unexpected ball size distribution was attributed to the rapid change in the balls radial hardness. Based on the measured ball size distribution, a new ball make-up charge which uses 80% of 80 mm and 20% of 60 mm balls instead of 100% of 80 mm was proposed and implemented. The effect of the new ball make-up procedure in terms of ball consumption and grinding efficiency is being investigated."

Jan 1, 1999

By Tom Olsen, Tom Ohrling, Peter Taggart, Chris Martin

"North American Palladium commissioned the new concentrator at the Lac des Iles mine in the summer of 2001. The 15,000 tonnes per day mill replaced the existing 2,400 tonnes per day facility, as part of a major mine expansion.At Lac des Iles, the grain size distribution of the platinum group minerals (PGM) is bi-modal. Roughly two-thirds of the PGM are relatively coarse-grained, and often associated with fast floating copper and nickel sulphides. The remainder is ultra-fine, and locked in silicates, which poses a special challenge to the metallurgist. The previous mill typically recovered just the fast-floating mineralisation, but to achieve target recoveries, the new mill has to recover a substantial amount of the ultra-fine PGM. The metallurgical challenges associated with the recovery of fine-grained PGM in the talcous Lac des Iles ores, are described.The paper describes the approach used in circuit optimisation, and how metallurgical and operational optimisation raised palladium recoveries by more than 6% in six months, by tuning the circuit to recover some of the ultra-fine PGM mineralisation.BACKGROUNDThe Lac des Iles mine, owned and operated by North American Palladium Limited, is located about 115 kilometres north of Thunder Bay, Ontario. The mine originally opened in December 1993, and prior to 2001 included a mill capable of handling 2,400 tonnes per day of ore delivered from the nearby Roby pit.Following an intensive exploration programme conducted in 1999, and a detailed feasibility study, conducted in 2000, North American Palladium initiated a mine expansion project, the objective being to expand milling throughput from 2,400 tonnes per day to 15,000 tonnes per day. This required construction of an entirely new mill, which was commissioned in May 2001."

Jan 1, 2003

By E. Adam, B. Milkereit, M. Salisbury, L. E. Reed, G. Perron

Integrating seismic reflection, borehole geophysical, and physical rock property studies is an effective means of mapping lithological contacts and structures in the crystalline crust. At Les Mines Selbaie in the northern volcanic zone of the Late Archean Abitibi Subprovince, a high-frequency seismic reflection profile has provided the first images of deep crustal structures of this important polymetallic mine site. Physical rock property and borehole geophysical studies confirm that prominent seismic reflections can be caused by lithological contacts, faults and sulphide mineralization. At Les Mines Selbaie, the first two of these are shown by this study. Clearly identifiable reflection images from sulphide mineralization have not been demonstrated in analysis of the profile. The seismic images provide useful information about gross structure in the vicinity of Les Mines Selbaie. They can also place important constraints on the sequence of tectonic events and, therefore, can aid future deep exploration programs.

Jan 1, 1997

By Stephen J. Roberts

Gold catalysts were prepared on co-precipitated, calcined copper oxide - zinc oxide support by an inverse deposition-precipitation method. These catalysts were characterised by X-ray diffraction (XRD) and temperature-programmed reduction (TPR) and studied for CO oxidation activity at various catalyst calcination temperatures. TPR studies of the support material exhibited a double peak and shift to lower temperatures for the reduction of Cux+ to metallic copper, as opposed to the single reduction peak for pure CuO. This phenomenon is possibly caused by an interaction with the zinc oxide. The addition of gold to the support CuOZnO led to a further shift in copper reducibility to lower temperatures. Gold present in the initial uncalcined catalyst as Au3+ was auto-reduced to Au0 under various calcination temperatures. The Au3+ reduction peak was observed to shift to lower temperatures with increasing calcination temperature. The catalytic activity was found to pass through a minimum value with respect to calcination temperature. Catalysts with both gold in entirely the 3+ or metallic oxidation state were found to exhibit high activity. Furthermore, the catalysts were found to decrease in activity with decreasing Au3+ content up to an intermediate calcination temperature, afterwhich the activity increased sharply. Possibly at higher temperatures, a stronger Au-support interaction is formed, leading to a new active site.

Oct 1, 2003

By E. Lampard

Mines must manage variability from within their operations as well as those imposed upon them by external forces. This paper provides a framework to manage both internal and external variability through the review and adjustment of the mine plan where applicable to minimize lost production and maintain operational safety. KEYWORDS Mine plan, mine schedule, variability, safety, lost production, float days, update, adjustment, operations, Maintenance

May 1, 2011

By Ramón Alanís, Filiberto Orrante, Andrea Festa, Baldomero Gutiérrez, Fernando Cornejo

"SGS implemented two rules-based fuzzy logic expert applications on two grinding circuits operated by Peñoles Group in Mexico. Both expert systems are based on control strategies that push against process constraints to improve throughput. Based on proven methodologies, the projects also required some new approaches that led to permanent changes to the mill control strategy.This paper provides descriptions of the implementation, operation and performance of both expert systems. It also reviews how improved production rates were achieved through the use of a common set of expert technology tools. An overview of the resulting control strategies implemented on the two circuits is presented. The paper also discusses the identification of the process constraints within each circuit and how these constraints are used within the expert systems.INTRODUCTIONMexico-based mining company Peñoles Group and the Advanced Systems group at SGS, formally known as MinnovEX Technologies Inc., collaborated on the implementation of two expert systems in two grinding plants, both located in Northern Mexico.The primary objective of the expert systems was to increase throughput whilst still maintaining the cyclone overflow product size within an acceptable range. The secondary objective was to achieve a high level of utilisation of the expert technology.In order to achieve these objectives, SGS proposed a proven methodology which leveraged the existing operating and technical expertise at site through the client’s involvement in the design and implementation stages. The in-house operating and technical expertise of SGS was also brought to the project and implemented with the client’s approval at all stages. At both sites the final acceptance was defined upon meeting both process and utilization parameters.The development and deployment of rules-based fuzzy logic applications has matured as a technology and consequently, clear definition of process states and their place in the logic structure to control a given circuit are now transferable. The key to the robustness of the control logic depends on selection and tuning rules for maintaining stability and optimizing a given circuit. Application integrators need to have a standardized approach for timely integration and deployment; a critical component to avoid the common critiques that expert applications are idiosyncratic and difficult to maintain."

Jan 1, 2009

By S. C. Ellis

THE bituminous sand of northern Alberta has already an extensive literature, and most of the reports dealing with the subject are still available (see Selected Bibliography at end of paper). A phenomenon so striking and, as regards its extent, so unique, as the deposit in the vicinity of McMurray settlement could not fail to attract the notice of the early explorers, and we find references to it as far back as the latter part of the eighteenth century. However, scarcely a thought had been bestowed upon the possible economic value of minerals in the the remote northern parts of Canada before the second decade of the present century, and practically no detailed mapping had been done north of the town of Athabaska. The late Wm. Ogilvie made a track survey of Athabaska river in 1884, and surveys of certain lines-including the 23rd base line-had been completed by 1911. Between this base line and lake Athabaska, nothing had been attempted. Actually, no definite information at all was available regarding the character and extent of the bituminous sand when, in the earl y summer of 1913, a reconnaissance party set out from Athabaska for McMurray. At that period, the journey was made in summer by scow or canoe. No telegraph line had been laid, and a casual mail service by canoe or dog team once in three months formed the only means of communication with the outside world. The investigation has begun by the Mines Branch was continued during several subsequent years. The sand deposits were studied and sampled, the bi rumen was extracted from the sand and studied chemically and physically, and the economic significance of the deposit was given exhaustive study.

Jan 1, 1937

By Sarah Bélair, Denis Beltrami, Valérie Weigel

"Mabounié is a polymetallic deposit in Gabon containing niobium (1.2%), tantalum (0.03%), rare earth elements (REE) (1.4%) and uranium (0.03%) that are mostly carried by Pyrochlore minerals. Classical route for niobium recovery is a pyrometallurgical process that consists in pyrochlore flotation, dephosphorization of the niobium concentrate and aluminothermy to obtain ferro-niobium. Pyrochlore concentrates can also be treated by a hydrometallurgical process with a mixture of sulfuric and hydrofluoric acid leaching followed by solvent extraction to separate niobium and tantalum. However, the first process does not allow recovering REE and the second one is not environmentally friendly because of the use of HF.ERAMET is looking for new opportunities on strategic metals market and has recently developed a hydrometallurgical process for the recovery of all these metals based on a sulfuric acid treatment of the ore. After solubilisation of the valuable elements, niobium / tantalum are precipitated as a concentrate (12% w/w Nb and 0.3% w/w Ta) while REE (2.7 g L-1) and uranium (90 mg L-1) remain in solution. Nearly 90% of REE are recovered from the solution by conventional REE double salt precipitation [NaREE(SO4)2.xH2O) method but some REE still remain in solution as this method does not allow to quantitatively recover medium (Sm, Eu, Gd, Tb, Dy) and heavy (Ho, Er, Tm, Yb, Lu, Y) rare earth elements. From the different process routes studied (solvent extraction, precipitation, ionic exchange etc.), an innovative method has been developed and patented to recover REE residual concentration in solution. This is based on an aluminum removal step followed by precipitation of REE as REE phosphate concentrate (REEPO4) by phosphate addition into solution. The phosphate concentrate is then purified according to the conventional monazite treatment, i.e. caustic conversion and REE solubilisation in acidic media."

Jan 1, 2016

By H. Wyslouzil

"The Kelsey Centrifugal Jig is a gravity separation device which utilizes the principles of the conventional mineral jigs but with the additional feature of being able to vary the apparent gravitational field. This is accomplished by utilizing the specific induced movements of the conventional jig within a centrifuge.Pilot plant trials have been underway since July 1988 to evaluate the potential applicability of this technology to various process streams at Rio Kemptville Tin.The grade/recovery relationships for samples treated in the jig were consistently better than results obtained from tables. Recoveries of more than 90% were attained at concentrating factors ranging up to 20. When compared with electrostatic separators, the jig achieved equivalent metallurgical results in a two stage process, without the expensive requirement of filtration and drying. Recoveries exceeding 96% were achieved with final concentrate grades averaging higher than 60% tin.INTRODUCTIONMineral jigs have been used for hundreds of years. Many different types have been developed, and each one has numerous variations. In recent years, the idea of applying centrifugal forces to conventional jigs has been put to practical tests and today a number of units are in commercial production. In principle, by enhancing the apparent gravitational field, it should be possible to recover finer particles by overcoming viscosity and surface effects which tend to limit existing gravity devices. In addition, it may be possible to use gravity to separate minerals with much smaller specific gravity differences."

Jan 1, 1990

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 H. P. Jacobi

"The last 25 years have seen tremendous economic pressure placed upon the base metal processor. Industry has responded with technological innovations that have contributed to significant reductions in capital and operating costs. Major changes in processing machinery and philosophy are highlighted for the main unit operations of a base metal mill. Changes in our attitudes on what is environmentally acceptable are also discussed.INTRODUCTIONNewton's law of motion paraphrased states that nothing will change unless there is a pressure to do so.Aase metal processing as a primary commodity related industry has been under severe economic pressure over the last 25 years. This has been brought on by over capacity from new operations in the L.D.C. 's, through material substitution in a host of traditional base metal applications and generally reduced world-wide economic activity. In addition to shrinking markets our collective environmental consciousness has raised effluent standards and workplace hygiene and the employee's as well as government's economic expectations of how much ought to be derived from ''nature's riches''.Industry has responded with technological changes which, it was hoped, would counteract the cost squeeze in which it found itself.I would like to briefly enumerate the major changes, as I see them, that have taken place in the main unit operations that form the normal processing chain for base metals.While the following paper will mention several brands of products, I would like to emphasize that these are the ones that I am most familiar with and is not to say that they are the only manufacturers which have contributed to changes. In fact it ls fair to say that all makers of mining and processing equipment have made improvements to their products, to a greater or lesser degree; they have had to, to still he in business in 1986."

Jan 1, 1987

By Yum Xiaoquan, Turgut Yalcin

"A laboratory study was carried out to determine the potential role and effect of ultrasonic irradiation in the flotation of a Sudbury copper-nickel sulphide ore. The use of ultrasound was tested separately at the pulp preconditioning, collector conditioning and flotation stages. While no significant benefits were evident in the latter two cases, ultrasonic preconditioning of pulp improved the grade-recovery performance and had the prospect of reducing reagent consumption rates. Tests were conducted on both the normal and oxidized ore samples, and several variables were investigated, including ultrasound frequency (25 kHz and 45 kHz), ultrasonic power (up to 1.6 W/cm2), duration of ultrasonic treatment (up to 60 minutes), and the intensity of pulp agitation employed during the application of ultrasound. Ultrasound frequency of 25 kHz and duration of 15 minutes yielded satisfactory results. Changes were found to occur in the temperature, pH and Eh of the pulp during ultrasonic processing. The favorable effects of ultrasound observed in this study were attributed primarily to its surface cleaning capability.INTRODUCTIONThe use of ultrasound for the surface cleaning of objects is well known. Ore flotation is based essentially on the surface properties of minerals, and hence stands to benefit from ultrasonic treatment which may help restore mineral surface characteristics that might have been lost or modified through oxidation, etc. Expected outcomes of this method of treatment include improved flotation kinetics, higher recovery, better selectivity, and savings in reagent consumption, as has been demonstrated by various researchers (Aldrich and Feng 1999, Celik 1989, Ozkan 2002, Letmathe et al. 2002, Nicol et al. 1986)."

Jan 1, 2005

By W. A. Lang

Introduction Under our present civilization, industrial developments will be greatest in those areas in which energy .can be most economically produced and efficiently used, where labour is in adequate supply, and where markets for the products of industry are available. A knowledge of fuels- the present major sources of energy- and of their utilization is therefore of vital importance. With that in mind, the aim in this paper will be to outline the known reserves of fuels in Alberta, to give their characteristics, to indicate the markets served by each, and to offer some suggestions for the future development of the coal industry. The paper should be regarded as a compilation of published data rather than as an original treatise. Alberta is richly blessed by having large reserves of mineral fuels. The estimated reserves of coal are 46,562 million tons. Alberta is the oil and gas province of Canada. The world's largest deposit of bituminous sand occurs along the Athabaska river in Alberta. In addition, there are large areas of forested land in the northern and western sections of the Province, and the rivers serve for the development of hydro-power.

Jan 1, 1949

By Seppo Lähteenmäki, Pertti Koivistoinen, Jaakko Levanaho

"This paper describes the benefits and disadvantages of fully autogenous grinding when compared to grinding with steel grinding media. The study is a real case study based on a low tonnage, high grade mining project in a remote location in a developing country. The study compares the capital and operating costs of using either SAG mill, Ball mill, Crusher (SABC) or fully autogenous (AG) grinding circuits and produces an economical analysis of the project for both options. The economics have been developed for the overall project, including mining, processing, environmental and the infrastructure as well as for the additional cost of constructing a fully autogenous grinding circuit instead of the original plan of a SAG Mill, Ball Mill circuit.The paper also describes the development of the autogenous grinding circuit at Outokumpu Oy, Pyhäsalmi mine. This experience was used to design the autogenous grinding circuit for the case study. Pyhäsalmi Concentrator has over 30 years of experience in operating autogenous grinding circuits and therefore provides a sound base for the new circuit design.INTRODUCTIONGrinding of ore using steel grinding media is currently the most commonly used method in the mining industry. Autogenous grinding, ore replaces iron media, is also common especially in Europe and Africa. Iron ore industry in North America uses autogenous grinding in primary and/or secondary stages extensively. In gold, copper and other base metal industries, autogenous grinding is not as common, although there are operations where pebble grinding is or has been used in the secondary grinding stage. There are many variations of autogenous grinding in use in the mining industry. These variations include different mill sizes, mill length to diameter ratios, ore lump sizes, screening and pebble crushing configurations."

Jan 1, 2000

By Mohamed Ourriban, Yongjun Peng, Qi Liu, Denis Cotnoir

"In the flotation of fine particles, there are two difficulties in general: low recovery of valuable minerals and high recovery of gangue minerals. The low recovery of fine valuable minerals is attributed to low bubble-particle collision and attachment efficiencies, while high recovery of fine gangue minerals is attributed to mechanical entrainment through water films between gas bubbles. Over the last five years COREM has been actively developing fine particle flotation techniques with the objective of improving fine particle flotation separation efficiencies.The fine particle flotation techniques with both generation of micro bubbles and enlargement of sizes of fine particles have been developed to increase bubble-particle collision efficiency. For oxidized fine sulphide minerals, both physical and chemical techniques have been developed to modify the hydrophilic surfaces and therefore increase bubble-particle attachment efficiency. To reduce mechanical entrainment of fine gangue minerals, a new approach, polymeric depression and flocculation, has been developed. By selecting the high molecular weight polymeric depressants to make fine gangue minerals hydrophilic and also enlarge their sizes, entrainment can be minimized. By combining these techniques, we are able to improve both flotation recovery and selectivity in some fine ore flotation systems.INTRODUCTIONWith depleting mineral resources and their declining grades, ores leaving grinding circuit for froth flotation are becoming increasingly finer to achieve mineral liberation. Together with the increasing demand for minerals, ever-increasing tonnages of fines are being produced. Therefore, flotation of fine particles is an immense challenge to be tackled by researchers all over the world today."

Jan 1, 2006

By J Petrolito

"To improve the economic and environmental performance of underground mining operations, it is common practice to return the metallurgical waste material underground as backfill. This is called hydraulic backfill and is used to fill the mined-out areas not exposed to further mining. To provide mechanical support for underground mining a cemented backfill is normally used. Since its introduction, cemented backfill has allowed mining companies to increase their ore extraction and improve working and environmental conditions. However, cemented backfill represents up to 50% to 85% of the mine’s operating cost compared with 5% to 10% for hydraulic backfill.These economic pressures have led mining companies to carry out research into the partial or total replacement of cement using a variety of alternative materials. The materials are generally site-specific materials, readily available, and cost-effective relative to cement. Such investigations have led to reduced cost of many backfill mixes while maintaining, and in some cases improving, the physical properties of cemented backfill. However, in most cases, cement still remains an integral part of any binder combination. This can be attributed to the alternative binders investigated being either non-binding materials or capable of generating only low-strength backfills, except when used in conjunction with cement.This paper provides a historical review of backfilling binder materials and their characteristics. In particular, it reviews the many alternative materials that have been proposed to either partially or fully replace Portland cement as the main binder."

Jan 1, 2005

By Karl J. C. Harries

"6.1. INTRODUCTIONThis chapter comments on some of the more common types of agreements related to property examination and acquisition, other than the farm-in/joint venture agreement or common undertaking, which is dealt with in the next two chapters. Many of the comments made in Part IV of Chapter 4 apply equally to any such agreement. In addition, many of the comments in Chapter 8 and the examples in Volume II are most certainly relevant to many other types of agreement.6.2. RIGHTS OF FIRST REFUSAL1A right of first refusal is a right that obligates an owner to offer his property, or an interest therein, to the holder of the first right if the owner intends to sell or otherwise dispose of it. It may be triggered either by the owner wishing to offer his property for sale or by receipt of a bona fide offer to purchase his interest from an “outside” third party. The mechanics and procedures to implement a first right should be set out clearly in the agreement, and their basics are the same, whether the first right is a stand-alone document or is part of an acquisition agreement.2Rights of first refusal are common in agreements to permit some control over the disposition of an interest and there they can be a valuable provision. However, some explorationists feel that they are also a good stand-alone agreement to have while a property is being evaluated to decide whether or not it is worth optioning. The reasoning is that such an arrangement will tie up the property to allow a quick look and, if the property looks interesting, the balance of the term of the first right will give an ample exclusive period of time to negotiate with the owner and settle an acquisition agreement. In addition, the explorationist is protected by the first right if the owner decides to negotiate a deal with another party."

Jan 1, 2003