Search Documents

By Richard P. Graff

Author?s note: Diversity in practice exists in the application of Generally Accepted Accounting Principles (GAAP) for purchase price allocations with respect to the recognition of Value Beyond Proven and Probable Reserves or VBPP, as defined by the Emerging Issues Task Force (EITF) in EITF 04-3: ?Mining Assets: Impairment and Business Combinations?. This diversity appears to arise from differing interpretations of what constitutes sufficient information to value components of VBPP in business combinations. Concerned with this diversity in practice, respected members of the mining community formed a working group which prepared an issues paper that discussed this diversity and provided recommendations for recognition and valuation of VBPP in business combinations. The working group then submitted this paper to the EITF, requesting further guidance be issued on the concept of VBPP. In conjunction with the submission to the EITF, the working group also provided this paper to the United States Securities and Exchange Commission (SEC) for review and comment. The EITF discussed this issue at its May, 2008 agenda committee meeting. However, it declined to add this topic to the EITF agenda for further consideration. Absent additional guidance on VBPP from the EITF, the working group submitted a proposed definition of VBPP to the U.S. Securities and Exchange Commission for its consideration. The following article, which is consistent with the issues paper that was submitted to the EITF and the SEC, discusses the components of and valuation techniques for VBPP. The correspondence with the U.S. Securities and Exchange Commission, which includes the proposed definition of VBPP by the working group, is attached as Appendix 1 to this article.

Jan 1, 2008

By C. Ottergren

A process does not have higher capacity than what can pass through its bottleneck. Acknowledging this, and with the goal to optimize production at a minimum investment, one can use existing equipment, modify the process flow and make a few strategic capital investments. Automatic setting regulation is a technology that allows balanced crusher performance matching minute changes in feed material characteristics. The system makes it possible to utilize the crushers fully at all times. It also continuously and completely compensates for manganese liner wear.

Jan 1, 1999

By K. H. McDaniel, D. M. Loring

The underground ventilation system at the Waste Isolation Pilot Plant provides unparalleled ability to ensure safety of the workers, public and environment. Although small spatially, it can vary the airflow from 66,000 acfm to 460,000 acfm. It can automatically incorporate HEPA filtration in the event of radioactive contamination. Remote-capable regulators individually control the four main splits, and can be adjusted from the surface if necessary. A ventilation remote monitoring and control system provides real-time information. Future areas of concern include DPM compliance, system psychrometry, logic-based-real-time mine ventilation simulation and automation using PLC technology. This paper discusses the evolution of this system.

Jan 1, 2002

By A. W. Czarnowsky

More than ever before, mining projects are besieged from growing regulatory, political, public, and special interest group pressure. Administrative and legal appeals to permits and environmental documents can delay project start-up and add tremendous cost to mineral development. Some mining projects have been canceled given undue external constraints. Successful managers must learn to cope with these constraints. This paper will discuss controversy and present a number of environmental management tips to minimize the potentials for delay and to lessen the impacts from government and anti-mining pressures.

Jan 1, 2001

By Jim Britton

Sustained elevated metal and coal prices in 2011 continued to drive mining projects across British Columbia. The province is the top producer of copper, exporter of coal and the only producer of molybdenum in Canada. The province also produces significant amounts of gold, silver, lead and zinc and more than 30 industrial minerals. The total 2011 value of solid metal production is an estimated $8.6 billion and the outlook for 2012 is positive. British Columbia is poised to bring several new mines onstream in the next few years. Construction continues at the New Afton and Mt Milligan copper-gold projects that are anticipated to be open in 2012 and 2013, respectively. The provincial Environmental Assessment Office indicates there are 26 mine proposals in process with three currently under review and 23 in the preapplication stage. The following text briefly describes 2011 metal and coal mining activities in the five regions reported on by the provinces? regional geologists (Fig. 1).

Jan 1, 2012

When it comes to processing industries, speed matters. More precisely, the faster/greater the throughput of finished product out the door, the more quickly money can flow back into the corporate coffers. In this quest for greater output, no processor can afford any weak links in the chain. Especially in the case of bulk solids operations, any one piece of equipment that slows the process down jeopardizes the profitability of the entire plant. However, one clay processor uncorked a pre-existing bottleneck by replacing its outdated separating equipment with a new design that immediately improved output.

Jan 1, 2007

By Collon C. Kennedy, Frances C. Hartogh, C. Joel Casburn

INTRODUCTION During the nineteenth century, the federal mining law was enacted with the objective of promoting the development of the western United States by providing unrestricted access to vast areas of federal land for mineral exploration. Prior to the advent of comprehensive federal, state and local land use plans, there was little, if any, regulation or restriction of mineral exploration activities. Today, the laissez-faire policies of the past that encouraged mineral exploration have gradually given way to the public's legitimate concerns regarding environmental protection, multiple use and planned land development. As a result, the contemporary prospector confronts a maze of statutes, ordinances and regulations with which he must comply to obtain the requisite approvals and permits before commencing mineral exploration on federal, state or private lands. This presentation will provide a broad overview of the exploration permitting process. The first section of this paper recommends certain general management practices to follow when attempting to obtain exploration permits. The second section presents two hypothetical cases, one involving a drilling program on private property in California and the other involving a drilling program and the removal of a bulk sample for metallurgical tests from federal land in Nevada. The cases are used to discuss jurisdictional issues and application of certain federal, state and county laws and regulations that pertain to mineral exploration. The final section contains a brief analysis of three important recent United States Supreme Court decisions. These decisions address the scope of the federal pre-emption doctrine as it applies to activities conducted on unpatented mining claims and the constitutional limits of permissible state and local land use and zoning regulations. PERMITTING PRACTICES The environmental impacts associated with mineral exploration generally result from the construction of drill sites, roads or trenches. Consequently, after the regulatory authority has considered the issues of permissible land use, the primary emphasis of the permitting process is to address problems related to pre-construction site identification and clearance, and post-construction site reclamation. The approaches taken to address these and other related issues vary with the scope of proposed work, the site, the appli-

Jan 1, 1987

By Steven W. Hunt, Safdar A. Gill

Design and construction of temporary shafts for underground facilities often require evaluation of bottom stability due to rupture (blow-ins) caused by water pressure acting on a bottom plug. This paper provides an overview of shaft bottom stability evaluation methods for the case of a relatively watertight soil plug which overlies an artesian aquifer. Methods of considering plug perimeter shear, plug buckling and pressure relief are discussed. Minimum factors of safety are suggested. Future use of the shaft subgrade is also considered. Bottom plug failure case histories at several shafts are evaluated. This paper should be useful to project designers, ground support system design engineers and contractors involved with construction of shafts for underground facilities

Jan 1, 1997

By R. L. Pearson

The 1987-88 Denver Brown Cloud Study was performed to determine the sources of the particle cloud which forms over Denver each winter. The study was organized under the leadership of Colorado Governor Roy Romer , EPA Region VIII and the Greater Denver Chamber of Commerce. The study was sponsored by over 40 organizations representing governmental agencies, the natural gas industry, the coal industry, utilities, oil companies, railroads, the motor vehicle industry, and other Denver area companies and organizations. The cost of the study was $1.5 million which was raised almost entirely from private sources. The study team was headed by Dr. John Watson of the Desert Research Institute of the University of Nevada. Dr. Watson is a recognized expert in conducting studies of this type.

Jan 1, 1990

By R. Oler

The mining industry?s traditional preference for protective coatings in corrosive environments, due to cost considerations, has been to apply galvanized and epoxy coatings. As a result of extreme pH levels and the limitations of current products, a new coating has been developed to withstand severe conditions. Harsh chemicals and corrosive groundwater pose added challenges to mines in maintaining long term ground support which demands continuous rehabilitation. This paper highlights the challenges and identifies a solution by applying a new economic coating to DSI?s Omega Bolt? that withstands the most corrosive of conditions. [ ]

Jan 1, 2012

In 1991, Placer Dome Venezuela established a 70% stake in Minera Las Cristinas, to mine the Las Cristinas gold deposits in Bolivar. This case study examines the multi-sectoral partnership arrangement that was developed to improve health services near the proposed Las Cristinas gold mine. The investment climate in Venezuela is uncertain and the socio-economic circumstances are potentially hostile. Despite that, the partnership between the mining company, local communities, government agencies and an international health nongovernmental organization (NGO) collectively leveraged nearly $2.5 million to build and operate a community health center.

Jan 1, 2002

By J. Gentry

Chemical grouting has been successfully used for over forty years to control the movement of groundwater in a wide variety of applications including tunnels, subway systems, sanitary sewers, mines and construction projects. This paper illustrates the versatility of chemical grouts by reviewing three projects where chemical grout was utilized to address some very difficult water control challenges. The featured product is acrylamide which can be used alone or in conjunction with other types of grout such as cementitious products. Acrylamide grout is injected as a two component product that will react and form an impermeable gel when the components combine. There are notable differences between the acrylamide based products and cementitious products. The most notable and significant difference is that acrylamide is a true solution grout that contains no particulates and has a viscosity of 1-2cps. This feature enables the acrylamide grout to penetrate very small geological features that other grouts could not penetrate and to seal small cracks and fissures where groundwater seepage is occurring. The product also has an adjustable gel set time from a few seconds to several hours which enables the operator to determine the product travel before it forms a gel. When properly applied the product has a half-life in the soil of 362 years (per testing by the US Department of Energy).

Feb 27, 2013

By Ronald R. Rose

Currently six economic heavy mineral deposits are known on the Penholoway Terrace. These are (from south to north) the Green Cove Springs Mine (GCS), Boulogne Mine, Folkston Mine, Mission, Lulaton, and Ludowici. The GCS deposit is located to the west of Highway 17 between the towns of Green Cove Springs and Palatka in the state of Florida and has been mined since 1972. To the north, the erosion created by Black Creek restricts the northern extension of the orebodies and to the south a karst depression and erosion by the St. Johns River restrict southern extensions. The deposit is 20 miles long and up to 4.5 miles wide. Deposit thickness is from 5 feet up to 45 feet. The deposit is a series of regressive barrier island sequences deposited during the Pleistocene along the ancient Penholoway and Wicomico shorelines. The initial transgression of the ocean up to the location of the western Henry orebody was an extensive sea-level still stand as evidenced by the unit thickness and stacked transgressive regressive sequences. This period was followed by sporadic regressing seas and still stands, progressing eastward and stranding the sand bodies which make up the East Extended, TE, and East TE Ridge orebodies. The orebodies are underlain by predominantly non-mineralized fluvial sands and occasional back barrier lagoonal deposited clays. There is a predominance of wetlands on the southern extents of the zone as the surface elevations decrease due to a large karst depression.

Jan 1, 2005

By D. Blackwell, W. R. Reed, G. Ross, S. Peters, M. Shahan

Dust collectors for roof bolting machines generally use a dry box to collect the roof bolting material. Recently, an underground mining operation converted a dry box dust collector to a wet box dust collector with a unique exception from MSHA for testing purposes.Water is routed to the roof bolter fromthe main water line of the continuous miner. The wet box utilizes a water spray to wet the incoming material. Testing was conducted comparing the two different collector types. Respirable dust concentrations surrounding the roof bolter with the different collection boxes were similar. The main difference in respirable dust concentrations occurred when cleaning the dust boxes. The average respirable dust concentration during cleaning of the wet box was 0.475 mg/ m3, and during the cleaning of the dry box, the average respirable dust concentration was 1.188 mg/m3, a 60% reduction in respirable dust concentration. The quartz content of the roofmaterialwas high, ranging from 28.9 to 52.7%during this study. The results from this study indicate that using the wet box as a collector reduced exposure to respirable dust up to 60% when cleaning the collector boxes.

Aug 26, 2020

By S. L. Lebo, J. D. Gargulak

Lignin, the second most abundant natural polymer and bi-product of the pulp and paper industry, has been commercially available in a number of forms since 1940. This growing industry is fueled by demand in traditional applications. Reagents that offer unique solutions in various mineral process applications are examples of advanced uses that also fuel growth. These applications include flotation reagents in fluorspar, bastnäsite and potash, as well as in the zinc pressure leach process. Due to the fact that no concerted effort has been made to find applications for modified lignosulfonates, it is quite possible that this natural material will find use in other benefication processes.

Jan 1, 2002

By Larry A. Enloe

The 16-to-1 milling operation is Sunshine Mining Company's first new silver and gold producing facility. The 16-to-1 underground mine and mill are located approximately 64 km (40 miles) southwest of Tonopah, Nevada. Ore re- serves in the epithermal vein deposit are estimated at 0.91 Mt (one million st) of ore, at an average silver grade of 206 to 240 g/t (6 to 7 oz/st) and an average gold grade of 1.2 g/t (0.035 oz/st). The underground mine uses a large diameter blasthole stoping system of mining using highly mechanized rubber-tired equipment. The mill uses conventional cyanide leaching with countercurrent decantation and Merrill-Crowe precipitation. The mill start-up was in February 1982 resulting in the first pour of dore' in March 1982. The mill's present annual production is approximately 31.1 t (1.0 million oz) of silver and 264 kg (8500 oz) of gold.

Jan 1, 1984

The introduction of computer technology to the mining industry has produced many benefits for the mining engineer. The most significant is the dramatic increase in productivity realized by the individual user. This is important during times of competitive market conditions. Software for the minerals and energy industries has evolved substantially over the past decade. But even today it remains difficult to find a system that features the flexibility and integration capabilities to effectively (and cost-effectively) handle the needs of professionals in each phase of the mining industry - from exploration to reclamation. Several national software developers are now addressing this challenge. One Denver-based company, MINEsoft Ltd., offers a software package that is currently being used in each phase of the mining industry. The basic technology used in MINEsoft's database management system was developed in the 1960s. But during these early years of the computer industry, most of the technology was available only on mainframe computers, and then only as separate entities. MINEsoft's system unifies these various systems in one package that can be used on most computers manufactured today. Database Management System TECHBASE is a flexible, integrated database management system designed specifically for technical applications. The system features a database manager with no practical limit to the amount of data it can store, retrieve, and manipulate, according to the company. TECHBASE in¬cludes Applications Packages (TAPs) designed to meet the needs of professionals in a host of industries. Clients use the TECH BASE system to prepare many reports, including important EPA information. The package reduces data to a manageable level and enables users to increase productivity with a smaller staff. Mining engineers no longer need to do things by hand. What used to be a day's work can be accomplished in an hour or two. Exploration "Using the TECHBASE system to generate maps has probably saved us the expense of three or four draftsmen," says Ralph Fitch, regional manager and senior staff geologist with Chevron Resources in Portland, ME. "The system has great flexibility. You can treat it much like a spreadsheet. If you are halfway through with a particular project, the system allows you to add fields and calculations with ease but without starting over." Fitch uses TECHBASE for the "straightforward" plotting of results and generation of geochemical and geophysical profiles. "In exploration," he says, "these are the two key elements ... the generation of maps and data profiles. The system allows you to plot as many elements and variables in these areas that you like." Other aspects are important, too, says Fitch, including drill hole sections. "We use all the basic capabilities the system provides in the complete package," he explains. "When shopping for a system, TECHBASE was clearly dedicated to exploration in the

Jan 9, 1987

By M. J. Gregory

The Pebble Cu-Au-Mo deposit in southwest Alaska is one of the world's largest porphyry deposits. The western part of the deposit was discovered by Cominco America in 1987, who sold the project to Northern Dynasty Minerals Ltd., in 2001. Northern Dynasty discovered the high-grade eastern part of the deposit in 2004 and went into a 50:50 partnership with Anglo American PLC in 2007, forming the Pebble Limited Partnership (Lang et al., 2008). The Pebble Limited Partnership has continued to delineate the deposit through diamond drilling with the most recent resource estimate released in February 2010 (Pebble Limited Partnership, 2010). The Pebble deposit mineral resources comprise 5.94 billion tonnes of measured and indicated resources grading 0.78% Cu EQ, containing 55 billion pounds of copper, 67 million ounces of gold and 3.3 billion pounds of molybdenum. Also delineated are 4.84 billion tonnes of inferred mineral resources grading 0.53% Cu EQ, containing 25.6 billion pounds of copper, 40.4 million ounces of gold and 2.3 billion pounds of molybdenum (Pebble Limited Partnership, 2010). Resources are calculated using a 0.3% Cu EQ cutoff. GEOLOGY AND MINERALIZATION Deposit Geology The Pebble deposit is located in the Kahiltna terrane, between terminal strands of the north-east-striking Lake Clarke strike-slip fault. This fault represents an accretionary boundary and separates the Kahiltna terrane to the north-west from the Peninsular terrane to the south-east (Lang et al., 2008). The Pebble deposit represents a large magmatic-hydrothermal system centered on a group of 90 million year old porphyritic hornblende granodiorite intrusions. An east-west cross section through the southern part of the deposit (Figure 1A) shows the typical relationships between the various rock units which host sulfide mineralization. Sub-parallel ~96 million year old granodiorite and diorite sills were intruded into siltstones of the Jura-Cretaceous Kahiltna flysch. In the west, these sills were cut by a ~96 million year old alkalic intrusive complex composed of porphyritic monzonites and monzodiorites and related intrusion breccias (Bouley et al, 1995). The mineralized 90 million year old hornblende granodiorite intrusions cut all rock types and comprise four small stocks in the western part of the deposit and a larger pluton in the eastern part of the deposit. Recent deep drilling indicates that these intrusions coalesce at depth. The strongest porphyry-style mineralization is centered on the eastern granodiorite pluton and extends into the surrounding rock units (Figure 1A). The western half of the deposit crops out at surface, whereas the eastern side is un-conformably overlain by a cover sequence of Late Cretaceous to Eocene sedimentary and volcanic strata. The deposit was tilted 20º to the east during the Eocene.

Jan 1, 2012

By T. Hawthorne, H. Barnes

Homestake Mining Company has developed an estimating model, based on other closed projects, to audit and prepare new estimating plans. The results of recent closure audits reveal that the original budgets were often insufficient to cover the present expected expenses. Some of the major areas where technical challenges and costs are increasing include heap leach pile detoxification and rinsing, tailings dam closure, water management and treatment, abatement of contaminated soils, and many others. Risk and sensitivity analysis of each category will develop a level of confidence in the estimate and allow management to focus on the pertinent issues. Periodic audits of closure plans and costs throughout the life of mine serves to focus management attention on the complete costs of production. This will result in improved overall planning and management, and reduce the number of missed opportunities for savings.

Jan 1, 2000

By Robert M. Miller, Judy Milligan

A computerized "Decision Support System" was used to evaluate an "Underground Platform Approach to Oil Recovery". Over a billion calculations were required to model the mine layouts; learning curves for shaft, tunnel, and well drilling scenarios; detailed cost, schedule, and resource data; complex oil production and material balance data; varying reservoir parameters; and complex oil pricing curves. Simplified "optimum" solutions were defined in terms of muck hoisting capacity, barrels of oil per day, and present worth. Complex "optimum" solutions were defined in terms of minimal exposure scenarios during development followed by shortest time to full production.

Jan 1, 1987