Planning and operational cutoff grades based on computerized net present value and net cash flow

Abstract The object of this paper is to outline a computerized net cash flow approach for practical cutoff grade determinations. A cutoff grade carries not only geological but also economic value, in which costs are balanced against revenues. For different situations, cutoff grades are a 'standard of value' that are determined for the purpose of classifying economic or uneconomic mineral reserves in a specified time frame. In a constantly changing technical and economic environment, the decision to develop or maintain a mining operation at its best economic potential, requires an appropriate cutoff grade strategy, a strategy consistent with short- and long-term operational and corporate objectives and one based on realistic marketing and metal prices forecasts.
The use of a project evaluation computer program, in combination with specific corporate net cash flow requirements, shows the most promising and flexible team approach for cutoff grade optimization.
Keywords: Computer applications, Cutoff grades, Cash flow, Costs, Capital expenditures, Ore reserves, Computer programs.
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Publication: CIM Bulletin
Author(s): GRAHAM E. BROWN
Keywords: Computer technology, Interactive Graphics Systems, Computer Graphics, Engineering office, Project control, Communications.
Issue: 878
Volume: 78
Year: 1985
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Summary: Rational exploration requires the prior selection of areas possessing excellent geological potential and minimum hazards to commercial development. Within an over-all strategy of grass-roots exploration, two procedures for selecting areas for (i) coal and (ii) metals exploration are described. The procedures explicitly balance infrastructure requirements and environmental concerns for areas of geological merit not alienated in parks and reserves. Through consensus, priorities are attached to...
Publication: CIM Bulletin
Author(s): J.H. SHILLABEER
Keywords: Exploration development, Planning, Coal exploration, Metals exploration, Project generation, Decision analysis, Environmental concerns, British Columbia.
Issue: 878
Volume: 78
Year: 1985
Text
Summary: Data from the South Fork Pit Area of the Bullmoose deposit in northeastern British Columbia are used to demonstrate the usefulness of microcomputers to the on-site geologist. The technique utilizes a series of digital surfaces in the form of a network of points to define various geologic parameters such as seam positions, topography and coal quality characteristics. Manual digitizing, kriging and combinations of these techniques are used to calculate these digital surfaces, the best method...
Publication: CIM Bulletin
Author(s): WARD E. KILBY, BRUCE I. McCLYMONT
Keywords: Computer applications, Microcomputers, Geological modelling, Coal mining, Kriging, Bullmoose Coal Mine, Deposit modelling.
Issue: 878
Volume: 78
Year: 1985
Text
Summary: Several years ago computer control of the flotation process was successfully implemented at the Matagami concentrator of Noranda Mines Inc. At that time this was the first computer application being installed at this operation.
The last few years have seen an extensive use of programmable controllers in areas such as the copper and zinc dewater-ing circuits and the lime preparation system. With the aid of such instruments, these areas have attained a high level of automation and as a result,...
Publication: CIM Bulletin
Author(s): MICHEL GARON
Keywords: Computer applications, Mineral processing, Flotation, Process control, Concentrator, Automation, Copper dewatering, Zinc dewatering, Lime preparation.
Issue: 878
Volume: 78
Year: 1985
Text
Summary: Concepts of linear elastic fracture mechanics were applied to study two cases of failure, namely an equalizing beam from a tandem rear axle of a highway tractor unit and the main beam of a flat bed trailer. In the first case, the presence of a crack, initiated by stress corrosion cracking followed by significant fatigue crack propagation produced a state of stress which was sufficient to produce brittle failure. Calculation of the fatigue life agreed with the number of cycles that the...
Publication: CIM Bulletin
Author(s): W.W. TENNESE, M.N. BASSIM
Keywords: Metallurgy, Fracture mechanics, Failure analysis. Metallography, Tensile properties, Chemical analysis
Issue: 878
Volume: 78
Year: 1985
Text
Summary: The lead concentrate produced from the volcanogenic base metal ore of Brunswick Mining and Smelting in New Brunswick contains major to trace amounts of iron, zinc, cadmium, arsenic, antimony, copper, silver, selenium, tellurium, bismuth, sulphur, tin, indium, mercury and manganese as impurities. When the concentrate is sintered some of these impurities enter a variety of oxide phases, whereas others precipitate as metals. In the lead blast furnace the oxide phases decompose and the impurities...
Publication: CIM Bulletin
Author(s): W. PETRUK, D.R. MORRIS
Keywords: Metallurgy, Smelters, Lead concentrates, Sintering, Brunswick Mining and Smelting, Blast furnace.
Issue: 878
Volume: 78
Year: 1985
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