senior mine design project: black gold #7 mine · · 2005-06-06senior mine design project: black...
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Senior Mine Design Project:Senior Mine Design Project:Black Gold #7 MineBlack Gold #7 Mine
Joseph ZirkleJoseph ZirkleMine Design Final Report Fall 2004 Mine Design Final Report Fall 2004
Presented for Seminar 25Presented for Seminar 25thth February 2005February 2005
Presented by: Joseph Zirkle
Outline:Outline:Location of the projectLocation of the projectProject ExplorationProject Exploration
Reserves and QualityReserves and QualityOverlying StructuresOverlying StructuresProject ScheduleProject ScheduleProject Mine PlanProject Mine Plan
Timing ForecastTiming ForecastTransportation & MarketingTransportation & MarketingEquipmentEquipmentPersonnelPersonnelEconomics Economics –– Cost AnalysisCost AnalysisConclusionConclusion
Presented by: Joseph Zirkle
Location:Location:Located 5 miles NW of Star City Located 5 miles NW of Star City
Pittsburgh #8 Coal Seam Pittsburgh #8 Coal Seam 38,514 Acres38,514 Acres
533 Million in533 Million in--seam tons of coalseam tons of coalData collected based on 51 core drill holesData collected based on 51 core drill holesAverage seam thickness = 7.5 ftAverage seam thickness = 7.5 ftOverburden thickness = 300 to 1,200 ft. Overburden thickness = 300 to 1,200 ft.
Mostly consisting of Mostly consisting of limestoneslimestones and and shalesshales
Presented by: Joseph Zirkle
Min
Proje
Bla
Draw
Appr
ZTra
Approximate Limit Pittsburgh seam
Railways
Interstate Highways
Barge Waterways
State Lines
County Lines
Power PlantsLedgend
Zorro Mining Co.
B
FIRST ENERGY CORP.
KAMMERAMERICAN ELECTRIC POWER CO.
MITCHELL AMERICAN ELECTRIC POWER CO.
PLEASANTSALLEGHENY POWER
WILLOW ISLANDALLEGHENY POWER
Ohio River
Ohi
o R
iver
ngahela
Cheat Lake
Preston Co.Marion Co.
Harrison Co.
Wetzel Co.
Doddridge Co.
Tyler Co.
Monongalia Co.
Taylor Co.
Barbour Co. Tucker Co.
Pleasants Co.
Washington o.
Monroe Co.
Marshall Co.
Green Co.
Feyette Co.
ALBRIGALLEG
FT. MARTINALLEGHENY POWER
RIVESVILLEALLEGHENY POWER
HARRISONALLEGHENY POWER
HATFIELDS FERRYALLEGHENY POWER
Location:Location:
Presented by: Joseph Zirkle
Project Exploration Data Origin:Project Exploration Data Origin:DrillholeDrillhole data acquired from Consol Energy.data acquired from Consol Energy.
DrillholeDrillhole data dating from the 1970data dating from the 1970’’s to the s to the present. present.
ArkwrightArkwright #1#1BlacksvilleBlacksville #1, and #2#1, and #2Federal #2Federal #2Humphrey #7Humphrey #7PersglovePersglove #15#15Osage #3Osage #3
Presented by: Joseph Zirkle
More Exploration More Exploration Total of 51 drill holes are in close proximity with Total of 51 drill holes are in close proximity with the propertythe property31 drill holes within the property31 drill holes within the propertyNot all drill holes had quality dataNot all drill holes had quality data
Reserve Classification Area (ft2) Acreage PercentageMeasured 208,629,433 4,789 12.43%Indicated 1,141,776,162 26,212 68.05%Inferred 327,532,818 7,519 19.52%
Total 1,677,938,413 38,520 100.00%
Presented by: Joseph Zirkle
E 483 - Reserve Mapping
Date
k Gold #7 Mine
By4/10/04oseph Zirkle
ved By
Zorro Mining Company
burgh Coal Thickness Uncertainty
D t
LEGENDReserve Classification
Measured0 - 14 Mile
Indicated14 - 34 Mile
Inferred3
4 - 3 Miles
12.4%
68.1%
19.5%
More Exploration (All Holes)More Exploration (All Holes)
Presented by: Joseph Zirkle
Reserves and QualityReserves and QualityCoal quality is lab tested on a DRY basis Coal quality is lab tested on a DRY basis (average values)(average values)
7.5 % Ash7.5 % Ash2.37 % Sulfur2.37 % Sulfur13,000 BTU per pound13,000 BTU per pound
More drilling will be necessary to analyze the More drilling will be necessary to analyze the project area with greater accuracy.project area with greater accuracy.
Presented by: Joseph Zirkle
Overlying Structures:Overlying Structures:No No majormajor cities overlay the mine property.cities overlay the mine property.The largest population centers are in West The largest population centers are in West Virginia:Virginia:
CassvilleCassvilleNew HillNew HillPentressPentress
Most surface structuresMost surface structures owned by farmers owned by farmers and landowners who are sparsely located and landowners who are sparsely located throughout the property.throughout the property.
Presented by: Joseph Zirkle
Overlying Structures:Overlying Structures:Cemeteries = 44Water tanks within property boundary = 4Churches = 11Schools = 5Natural Gas Wells = 275275Crude Oil Wells = 290
50 Percent of these wells are to be plugged
Presented by: Joseph Zirkle
Overlying Structures: Gas & Oil WellsOverlying Structures: Gas & Oil Wells
E 484 - Final Reportck Gold #7 Mine
Zorro Mining Company
e Location Map: Cemetaries, Churches, ools, and Water Tanks
Legend:Cemetaries Churches Schools Water Tanks
Natural Gas Wells Crude Oil Wells
Presented by: Joseph Zirkle
Project ScheduleProject Schedule
Months Duration Fi
rst H
alf
July
Aug
ust
Sep
tem
ber
Oct
ober
Nov
embe
rD
ecem
ber
Janu
ary
Febr
uary
Mar
ch
Apr
ilM
ayJu
neJu
lyA
ugus
tS
epte
mbe
rO
ctob
erN
ovem
ber
Dec
embe
rJa
nuar
yFe
brua
ryM
arch
A
pril
May
June
Sec
ond
Hal
f
Firs
t Hal
f
Sec
ond
Hal
f
Firs
t Hal
f
Sd
Hlf
Aquire Mine Property XHire Planning Staff and Moving Costs 3Hire Salary Mine Management and Moving Costs 7Hire Hourly Mine Worker 12Project Feasibility Study & Development Cost EstimateCost Estimate for Equipment and Construction 3
Detailed Review of existing Geologic Data 3Plan Exploration Program - drilling permits 2Drill and Analyze Coal, Methane, Roof & Floor 4New Reserve Study 3
Reclamation Bonds and Monitoring Wells XPerfect Title to surface land, water and mineral 6Prepare Permit applications for New UG Mine 9Permit Approval by Agencies 12
Layout Preliminary Mine Plan 3Generate Production and Quality Scenarios 3 + 3Finalize Approved Mine Plan 3
Surface Facilities Design, Bid, Construct 9-12 DesignPlant Facilities Design, Bid, Construct 18-25Overland Belt and Loadout, Bid, Construct 27-30 Land Acquisition DesignShaft 12-18Slope Excacation 24-36Bleeder Shafts 8
Exploration
Land, Environmental & Permitting
Construction
Mine Planning
Bars = Timing and Duration of ActivityArrows = Relationship Between Activities
Year 4 Year 5Year 3
Table 13.1: Mine Project Schedule2005 2006 2007 2008 2009
Mining and Construction Management
Activity
Year 1 Year 2Color = Important Activity or Critical Path to Project Completion
Presented by: Joseph Zirkle
Project ScheduleProject ScheduleSurface Facilities Design, Bid, Construct 9-12 DesignPlant Facilities Design, Bid, Construct 18-25Overland Belt and Loadout, Bid, Construct 27-30 Land Acquisition DesignShaft 12-18Slope Excacation 24-36Bleeder Shafts 8
Order Fan, Rock Dust, Mine Conveyor, ect. 2Order & Build Substation and Water Well 7Order & Rec. Mine and Section Equipment 5Order & Rec. Longwall Equipment 15-DecInstall Longwall 2
Development CM 1CM 2CM 3CM 4CM 5CM 6LW 1LW 2
Unit Production CM 1CM 2CM 3CM 4CM 5CM 6LW 1LW 2
Target Annual Production
Mine Development
Construction
101,583100,555
00
0000
0
256,291247,056 367,090
198,811
00
07,208,005
201,9610
197,1150
7,847,172
62,699185,685
0188,112
0000 0
205,821 205,755 205,
259,177191,154
00
295,321 393,653
0
367,399,192,
00
6,9460
8,371,618 8,111202,138 436,496 904,119 8,798,645
Presented by: Joseph Zirkle
Project ScheduleProject ScheduleDevelopment begins when the main Development begins when the main shaft is completed. shaft is completed. Four CM Sections Initially Operating to Four CM Sections Initially Operating to Develop Mains and Develop Mains and GateroadsGateroads (2007(2007--2013)2013)One LW Initially (2010One LW Initially (2010--2015)2015)Addition of two CM sections in 2014 to Addition of two CM sections in 2014 to develop develop gateroadsgateroads ahead of second LW.ahead of second LW.Addition of second LW in 2016Addition of second LW in 2016
Presented by: Joseph Zirkle
Project Mine PlanProject Mine Plan
1S-6E
1S-7E1S-8E
1S-9E
1S-10E
1S-11E
1S-12E
1N-14E
1N-16E
1N-18E
1N-20E1N-15W
1N-17W
ny
Map Key:Longwall Panels
Old Mine Workings
1N-19W
1N-21W
1N-23W
1N-25W
1N-27W
1N-29W
1N-31W
1N-33W
1N-35W
1N-37W
1N-39W
1S-1W1S-2W
1S-3W1S-4W
1S-5W
1W-41E
1W-40E
2S-78E
2S-77E
2S-76E
2S-74E
2S-72E
2S-70E
2N-42E
2N-44E
2N-46E
2N-48E
2N-50E
2N-52E
2N-54E
2N-56E
2N-58E
2N-60E
2N-62E
2N-64E
2N-66E
2S-75W
2S-73W
2S-71W
2S-69W
2N-68W
2N-43W
2N-45W
2N-47W
2N-49W
2N-51W
2N-53W
2N-55W
2N-57W
2N-59W
2N-61W
2N-63W
2N-65W
2N-67W
1N-24E
1N-26E
1N-28E
1N-30E
1N-32E
1N-34E
1N-22E
1N-36E
1N-38E
1S-6E
1S-7E1S-8E
1S-9E
1S-10E
1S-11E
1S-12E
1N-13E
1N-14E
1N-16E
1N-18E
1N-20E1N-15W
1N-17W
1N-19W
1N-21W
1N-23W
1N-25W
1N-27W
1N-29W
1N-31W
1N-33W
1N-35W
1N-37W
1N-39W
1W-41E
1W-40E
2N-42E
2N-44E
2N-46E
2N-48E
2N-50E
2N-52E
2N-54E
2N-56E
2N-58E
2N-60E
2N-62E
2N-64E
2N-66E
2N-68W
2N-43W
2N-45W
2N-47W
2N-49W
2N-51W
2N-53W
2N-55W
2N-57W
2N-59W
2N-61W
2N-63W
2N-65W
2N-67W
1N-34E
1N-24E
1N-26E
1N-28E
1N-30E
1N-32E
1N-22E
1N-36E
1N-38E2
Nor
th M
ain
2 So
uthM
ain
West Submain
1 N
orth
Mai
n
1 So
uth
Mai
n
Presented by: Joseph Zirkle
Project Mine PlanProject Mine PlanGateroadGateroad Pillar DesignPillar Design
ALPS (Analysis of ALPS (Analysis of LongwallLongwall Pillar Stability)Pillar Stability)Developed by Chris MarkDeveloped by Chris MarkBased on Based on BieniawskiBieniawski pillar strength equation
Pillar DimensionsYield / Abutment Three-Entry System
Yield Pillar: 66 ft. x 140 ft. Centers Abutment Pillar: 150 ft. x 280 ft. Centers
NOTE: Dimensions are IncorrectUsed Max Depth vs. Average Depth! (sorry)
Presented by: Joseph Zirkle
Project Mine PlanProject Mine Plan
50' x 124'50' x 124'
134' x 264'
Yield Pillar
Abutment Pillar
Figure 7.1: Gateroad Pillar Dimensions
Presented by: Joseph Zirkle
Project Mine Plan Project Mine Plan –– Mains Pillars Mains Pillars ARMPS (Analysis of Room and Pillar Stability)ARMPS (Analysis of Room and Pillar Stability)
Developed by Chris MarkDeveloped by Chris MarkBased on Based on BieniawskiBieniawski pillar strength equationpillar strength equation
Pillar DimensionsPillar DimensionsNineNine--Entry System (4 Intake, 3 Exhaust, 2 Neutral)Entry System (4 Intake, 3 Exhaust, 2 Neutral)88 ft. x 266 ft. Centers 88 ft. x 266 ft. Centers Mains System width of 808 ft.Mains System width of 808 ft.Recovery Ratio of 23.1 %Recovery Ratio of 23.1 %NOTE: Dimensions are IncorrectNOTE: Dimensions are Incorrect
Used Max Depth vs. Average Depth! (sorry)Used Max Depth vs. Average Depth! (sorry)
Presented by: Joseph Zirkle
Project Mine Plan Project Mine Plan -- Timing Timing ForcastForcast
2010
2017
2012
2023
2020
LW 2
LW 1
LW 1
LW 1
Presented by: Joseph Zirkle
Transportation And MarketingTransportation And MarketingOverland Conveyor Belt Overland Conveyor Belt
Total of 8.6 MilesTotal of 8.6 MilesCosting $45.4 Million Costing $45.4 Million
ZMC will Purchase CONSOL Humphrey ZMC will Purchase CONSOL Humphrey LoadLoad--out Facilities out Facilities
$5 MM Renovation Costs$5 MM Renovation CostsFigure Based on PurchaseFigure Based on Purchaseof Alicia loading Doc ofof Alicia loading Doc of$3 MM + New Train Load$3 MM + New Train Load--outout
Presented by: Joseph Zirkle
Transportation And MarketingTransportation And MarketingOverland Conveyor to LoadOverland Conveyor to Load--out out gives three methods of gives three methods of transportationtransportation
Conveyor north to Longview Power Conveyor north to Longview Power Station and Ft. Martin Station and Ft. Martin
2.8 additional Miles2.8 additional MilesTrainTrainBargeBarge
Presented by: Joseph Zirkle
Transportation And MarketingTransportation And Marketing
Monongalia Co.
FT. MARTINALLEGHENY POWER
Morgantown
*LONGVIEW (Maidsville, WV) LONGVIEW POWER LLC.
Star CityOsage
Load-OutBelt
Slope Entrance
Zorro Mining Co.
Presented by: Joseph Zirkle
Total Manpower RequirementsTotal Manpower Requirements486 Salary and Hourly Employees486 Salary and Hourly Employees
81 Salary81 Salary405 Hourly405 Hourly
Adding 10% Absenteeism Adding 10% Absenteeism 526 Salary and hourly Employees526 Salary and hourly Employees
Manpower Costs = $27.8 MM / YearManpower Costs = $27.8 MM / YearManpower Costs with 40% overtime = Manpower Costs with 40% overtime = $38.9MM / year$38.9MM / year
Presented by: Joseph Zirkle
Table 15.4 (Cont.) Operating and Table 15.4 (Cont.) Operating and Cash Costs TableCash Costs Table
Presented by: Joseph Zirkle
Financial Summary:Financial Summary:
Figure 15.1: Financial Summary (Net Cash Flow)
$(150,000)$(100,000)$(50,000)
$-$50,000
$100,000$150,000$200,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20YEARS
Dolla
rs(0
00)
NET CASH FLOWDCF by Year (7%)
Presented by: Joseph Zirkle
Financial Summary:Financial Summary:
Figure 15.2: Financial Summary (Cumulative Cash Flow)
$(400,000)$(200,000)
$-$200,000$400,000$600,000$800,000
$1,000,000$1,200,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21YEARS
Dolla
rs(0
00)
Cumulative Cash Flow
Presented by: Joseph Zirkle
Conclusions:Conclusions:This project has evidence of being a This project has evidence of being a
profitable venture and should be profitable venture and should be further evaluated with infurther evaluated with in--depth depth feasibility study before beginning feasibility study before beginning any mining operationsany mining operations..