An overview of valuation practices and the development of a Canadian code for the valuation of mineral properties

Abstract The notion of "value" has always been a subjective and contentious issue. Indeed, value is in the eye of the beholder . There are as varied methods and practices for valuing property, as there are industries in which they are applied. For example, there is replacement value, insurance value, salvage value, appraised value, book value, and fair market value, to name a few, although in the mining industry, valuations usually refer to fair market value. In the Canadian mining industry, at present, there are no comprehensive regulations or guidelines that specify which approaches or methods are appropriate for use in the valuation of mineral projects. In January 1999, The Mining Standards Task Force of the Toronto Stock Exchange and the Ontario Securities Commission recommended that the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) establish a committee to review and advise on approaches and methodologies for the valuation of mineral properties. Among the approaches to be considered are included the following: the discounted cash flow approach, the cost approach, the option pricing approach and the market comparables approach. In addition, methodologies differ depending on whether the project is at the exploration stage or the producing stage. The CIM Special Committee on the Valuation of Mineral Properties (CIMVal) expects that its final report will form the basis for a Canadian code or standard for the valuation of mineral properties.
Keywords: Valuation, Mineral properties, Regulations, Guidelines, Standards.
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Publication: CIM Bulletin
Author(s): M.A. Morin, Queen’s University, Kingston, Ontario
Issue: 1057
Volume: 95
Year: 2002
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Summary: The integration of mining and mineral processing technologies into new advanced mining systems is considered to offer several benefits, including selective mining, reduction in waste, increased productivity, flexibility, and improved resource utilization. This paper focuses on underground hardrock mining and the integration of pre-concentration technologies into future mining systems as representing realistic, shorter-term integration options. Control of fragmentation to optimize grinding,...
Publication: CIM Bulletin
Author(s): B. Klein, W.S. Dunbar, M. Scoble
Issue: 1057
Volume: 95
Year: 2002
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Summary: A mini- or micro-machine is a small electro-mechanical device. There are several existing applications of micro-sensors such as the accelerometers used in automobile airbags or the force sensors and grippers used at the ends of micro-surgery tools. Potential applications of existing mini- and micro-technologies are possible and could be used to improve the control and efficiency of fragmentation, heap leaching and other mining and mineral processing operations. A more radical proposition is...
Publication: CIM Bulletin
Author(s): W.S. Dunbar, B. Klein
Issue: 1057
Volume: 95
Year: 2002
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Summary: As mines utilize more automation in mining operations to improve efficiency and safety, a corresponding increasing demand is placed on the transport of information. Some of the recent technological advances in underground telecommunications are described for various data, voice and video applications. In particular, two new innovative underground communication systems are described, one with highspeed data at 30 Mbps and the other for minewide evacuation and safety applications. The high-spee...
Publication: CIM Bulletin
Author(s): P.M.Y. Waye, R. Yewen
Keywords: Mining, Automation, Underground data network, Earth communication
system, Networking technologies.
Issue: 1057
Volume: 95
Year: 2002
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