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Midas Touch, How to Promote the Investment Value of Mines via Exploring, Mining and Mineral Processing

Author: Steven(Heng) Huang                   Beijing Hot Mining Tech Co., Ltd


From prospecting to cash flow in the production of mines, only 6%!


Important note: Engineering drawings and NPV data can not be displayed, hope mine friends forgive me! Part of the three-dimensional map for the exploration model, the rest of the pictures are schematic.


1. Project Profile

Project: a barite mine in Guizhou.

Minerals: mainly barite, associated with a small amount of fluorite, belonging to industrial minerals.

Reserves: The existing mineral rights within the estimated 500,000 tons of resources; of which  about 65% can be taken. The ore body is stable and large scale, the ground 2-3km long visible ore. As the mineral rights below the elevation, there is a great possibility of mineralization, so the project has good prospects for deep prospecting.

Grade: the authority of its quality inspection, harmful impurities is very small, high brightness, density, massive, containing up to 97% of barium.

Area: good traffic conditions, the road through the ore body, 5km from the county, the county has a lead in all directions of the highway, river and railway planning; farmland, woodland and other local relations less hidden.

Deposit type: low temperature hydrothermal vein deposit.

Vein formation: barite vein formation mainly to fill the main, accompanied by a small amount of metasomatism.

Development and utilization of performance: easy to adopt, easy to choose, low-cost, low pollution.

Infrastructure: water, electricity are very convenient.


2. The Profile of Investment

Type of company: Junior Mining Companies.

Development goals: 3 years to grow into a cash flow of small mineral company.

The main products: fluorite, barite.

 Schematic diagram of barite ore and meet the drilling packing standard products-Beijing Hot Mining Tech Co.,Ltd

Figure 1 Schematic diagram of barite ore and meet the drilling packing standard products


3. Product features

Products are industrial minerals, the main features:

    1) The added value is limited and the profit is relatively stable (compared with the precious metal / energy mineral ratio).

For example, borax, Rio Tinto's investment in the United States. Stable profit base metal company many times in history to make up for the low rate of return on investment profits. With boron placer.

    2)  Fragile, and the hardness is not high.

    3) The development and operation of the project is mainly based on small mineral company, which is less attractive to mainstream funds.

    4)  The product pricing system is not transparent.

    5)  The small scale mining, limited affected by mining cycle.


4. Exploration work

4.1 Introduction of Ore Bodies

The outcrop elevation is 780-995m. ore body and rock clear contact line, occurrence and fracture occurrence is consistent, toward NW, tend to NW 220 degrees, the angle of 71 - 78 degrees, with an average of 75 degrees. A length of about 1.43km, thickness of 1 1.66M, average 1.36M, NNE or SSW veins extending to after the pinch, belonging to epithermal ore deposits.

Veins outcrop part-Beijing Hot Mining Tech Co.,Ltd

Figure 2 veins outcrop part


4.2 No Drilling

No drilling, reason:

Barite / fluorite is soft surrounding dominated by limestone, difficult drilling coring, as shown in Figure 3.

 Barite vein pouring drilling scenarios-Beijing Hot Mining Tech Co.,Ltd

Figure 3 barite vein pouring drilling scenarios


A lode large angle , steep orebody, drilling angle is difficult to control, it is easy to penetrate the drilling veins, coring drilling results is not representative, basically no significance.


In addition, according to the following relevant national standards, the project can be used in other ways instead of drilling.

"GB / T 13908-2002 Solid Mineral Geological Survey Code"

"GB / T 17766-1999 Solid mineral resources / reserves classification"

If the terrain is favorable or ore body shape is complexand drilling engineering is difficult to control, when collecting mineral processing large sample, we should select pit exploration project, to make full use of the old hole, mining pit for sample catalog.


Therefore, according to "barite, toxic heavy stone, fluorite, boron geology exploration norms" provides that the mine is classified as a type of exploration type Ⅲ. The basic engineering spacing is 100 × 50m; The existing ore vein has a number of trench exploration, and stolen mining pits by the villagers before, to meet the relevant exploration requirements.


4.3 Summary of exploration methods

The existing ore vein has a number of trench exploration, and stolen mining pits by the villagers before, meet the relevant exploration requirements.

Veins are obvious, it is available to use pit exploration (development method with adit, Mining at the same time exploration)

Benefits: Save on exploration costs to achieve the same results.


5. Mining Methods

In order to reduce the investment risk, this barite ore mining will be developed along the veins, namely: adit mining.

The exploration results coincide with the veins profile, the width of the vein is ideal, Barite / fluorite reserves are satisfactory. Developing along the veins and making full use of the high-grade ore profile will have a positive impact on the project's early cash flow.

See Figure 4, Figure 5, Figure 6 for a schematic diagram of the development method with adit.

 Three-dimensional schematic drawing of adit mining in tunneling along the veins-Beijing Hot Mining Tech Co.,Ltd

Figure 4 Three-dimensional schematic drawing of adit mining in tunneling along the veins


 Three-dimensional schematic drawing of adit mining working conditions-Beijing Hot Mining Tech Co.,Ltd

Figure 5 Three-dimensional schematic drawing of adit mining working conditions


 An abroad barite mine roadway-Beijing Hot Mining Tech Co.,Ltd

Figure 6 An abroad barite mine roadway


The ore bodies are mainly produced in the Ordovician limestone (hard rock) strata, the rocks on both sides of the veins are medium to thick layered limestone and a few dolomitic limestone. The rock is hard and has good stability, the contact surface is clear and stable, and the stability of surrounding rock is good. The ore body is controlled by the NW trending tensional fracture, which is inclined to output and the ore structure is simple. Therefore, the engineering geological conditions of the deposit are of simple type, which is favorable to the construction and exploitation of the deposit.

The vein extension mining method is in line with national safety standards and project acceptance requirements, in order to avoid safety accidents, there are more stringent requirements refer to the mine safety standards.

Compared with the local standard of the project, it is estimated to save RMB 4 million in the construction period and RMB 1 million in the production period per year according to the national standard.


 LHD joint work of a barite mine in a foreign country-Beijing Hot Mining Tech Co.,Ltd

      Figure 7 LHD joint work of a barite mine in a foreign country


6. Ellhead Confirmation

In order to reduce occupation of farmland and save construction cost, adit opening position is decided to be set at point 107 instead of point 117 (Figure 8). Because there is no village and farmland at point 107, road and industrial site construction is more simple than 117 points, cost is lower, it is also easy for post-mining.

6.1 Scheme Comparison of Pithead Position 880 VS 920


880 Pithead Scheme

920 Pithead Scheme

Surface soil section



Three connections and one leveling

Short time consuming

Long time consuming
(one more road needs to be built)

Villagers and community relations

Easy and simple

(land and cropland requisition)



Hard to control

Recoverable reserve






Investment recovery when construction

High possibility

Low possibility

6.2 Conclusion of Pithead Position Scheme

1) After field investigation, the temporarily chosen pithead position scheme is 880ML, GPS 57#.

2) The scheme that tunneling from the 960 or 920 inclined roadway is denied, to prevent the inclined roadway from hydrops.

3) After the 920ML ventilating shaft run-through, the fan is installed at the level of 920, however, after the 960ML air return way run-through, it’s better to carry fan from 920ML to 960ML, in order to prevent the forming of downriver ventilation and the pollution of underground air.  

4) By calculating of the mineral reserves, it’s hopeful that the investment could be recovered by extraction of minerals above 880ML.

5) Decrease the tunnel cross-section, design the tunnel H=2.8m and W=2.6m.H=2.8m W=2.6m. No driving, no pedestrian, there’s no need to set apart the sidewalk. The height of cables and water pipe suspension should be 10cm higher than mine cars, to prevent collision during transportation. The hanging distance of celling lamp is about 30-50cm.

6) Simplify the roadway support, if the Protodyakonov Coefficient is between 10-12, then most of the tunnel needn’t roof support, however, if there’s separation layer, then it needs to be supported by roof bolter, if there’s cracks, then it needs anchor nets support.

7) The mineral vein is assumed to be X. The problems might be, the mineral vein is not continuous, or the shape might be big-end-up, the metallogenic reason should be considered.

8) The treatment method of karren is, if there’s karren during tunneling, the preliminary scheme is supporting by roof bolter, and advancing directly without detour.


7.Mineral Processing Part

Barite ore zone is lode deposit.Due to the main mineral is barite,secondary minerals are fluorite and a small amount of quartz and calcite.They are mostly related to the growth and decline.The massive structure mainly are ore, easy to hand sorting to get barite concentrate;However, a small amount of associated and paragenetic ores are not easy to be sorted by hand,only suitable for flotation separation.

The general contractor and product underwriting partner,Beijing HOT Mining Tech Co.,Ltd,there are cooperation of barite mineral processing working point where near the port of Guangxi.For saving construction costs,the ore will be transported to the vicinity of Guangxi port to dressing and grinding,then direct packaging and export in the processing plant.

Planning select site around the project and building a large barite fluorite ore dressing plant,purchasing other local ore mines with high value-added processing.Then export from the Guangxi port.

A foreign barite ore grinding workshop and system installation-Beijing Hot Mining Tech Co Ltd 

Figure 9  A foreign barite ore grinding workshop and system installation


8.Project Plan

After the beginning of adit excavation, see the mine quickly to help the owner to achieve cash flow as soon as possible.  

The barite mine project development plan-Beijing Hot Mining Tech Co.,Ltd 

Figure 10  the barite mine project development plan


Current progress, has been obtained safety production permit and Notice To Proceed, about to start the construction (adit excavation).Project is expected to start after 3~4 months to achieve small-scale ore sales revenue.


9. HOT Mining's value

± To help investors save cost (mine exploration method, mining method, concentrator installation etc.).

± Help the mine to realize the cash flow of the product sales, and make profit as soon as possible.

Summaryonly profitable stone is mine! Turning stone into gold which is HOT’s mission!


10. Development Discussion

 Why is it difficult for geologists to lead an exploration project into a mineral company with a steady cash flow?

 Development of mining projects, what kind of team combination is the best?

 What high value-added services are required by the general contractor to be more competitive?



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