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By Julian Wills

The Candrill was developed with Soredem as a one-operator rockdrill for Canadian narrow vein mining. It provides the benefits of increased drilling rates, lower noise and vibration, mass reduction of 20% and system cost saving. The Candrill is to be commercialised at the end of 2001 together with a stoper drill through Parts Headquarters, Novatek's Canadian agent. The Candrill or pneumatic drills may be further exploited using a simple mechanised drilling system to further reduce operator labour, improve drilling speeds by up to 50% and to enhance drilling accuracy. Novatek's drilling system for simple mechanisation in gold and platinum mines is integrated with roof supports, can operate in stope widths as low as 800 mm and has resulted in labour savings of 50%, improved advances per blast of 20 to 50% and improved operator safety and ergonomics.

Oct 1, 2001

By John C. Taylor

A resource document, prepared for the Royal Commission on the Health and Safety of Workers in Mines, which outlines aspects of occupational health and safety in the Canadian metallurgical industry has been expanded to provide examples of some practical solutions. General process descriptions are provided in conjunction with some of the major potential hazards associated with each step. Emissions to the working environment, particularly around converters, are discussed. Newer metallurgical processes, the role of automation and other advances in the metallurgical industry are described with respect to their impact on the work place. The role of staff and unit employees in providing safe working conditions in the complex metallurgical plant of today is outlined and the need for close cooperation within the human sector emphasized. The technology is available and is being applied to integrate the complex process requirements with realistic regulations to control emissions and provide a safe, healthy environment in metallurgical plants.

Jan 1, 1978

By Claude Bazin, François Robichaud

"The control of the operation of semi autogeneous grinding (SAG) mills is mainly achieved through adjustments of feed rate, water addition and speed of rotation. With the introduction of image based sensors it is possible to have on-line measurements of the size distribution of the ore feeding a SAG mill. This information could be used for the development of a control strategy to regulate a SAG mill feed size distribution to a set-point. The control of the size distribution is carried out by adjustment of the speed of the ore extractors underneath the ore stockpile. The potential and difficulty associated with the implementation of such control are assessed using a multivariable statistical analysis of data collected from the operation of the grinding circuit of the Agnico-Eagle Goldex mine in Val d’Or, QC. A control strategy for the ore feed size distribution is assessed using a simulator of the ore stockpile operation.INTRODUCTIONThe popularity of autogeneous (FAG) and semi autogeneous (SAG) grinding mills has been increasing over the last 20 years (Napier Munn et al., 1996). These mills use the ore or a combination of ore and steel balls as the grinding media. Since the ore is used as a media for the size reduction the mill ore feed size distribution impacts the performance of the mill. Several papers were recently published on this subject (Dance et al.,2011; Wennen & Murr, 2011; Dance & Valery, 2011; Allaire et al., 2011) showing the advantages of preparing the feed size distribution to maximize the circuit throughput or mill efficiency (Wennen & Murr, 2011; Dance & Valery, 2011; Allaire et al., 2011). With the availability of particle size sensor based on image analysis of the ore on a conveyor (Partanen et al., 2001; Bobo et al. 2004; Edwards et al., 2002; Wei & Craig, 2009) it is possible to control the size distribution of the ore feeding autogeneous or semi autogeneous mills (Partanen et al., 2001).This paper describes a method to control a size distribution index to a set point via the manipulation of the speed of the extractors that withdraw the ore from the stockpile feeding the grinding circuit. The paper consists of 4 sections. The first section describes the considered grinding circuit. A statistical analysis of the collected data on the grinding circuit is presented in the second section. This analysis demonstrates the necessity of using real-time adaptation mechanisms to develop a control strategy for the size distribution of a grinding circuit. The third section describes the method used to simulate the ore stockpile operation and the last section describes the preliminary development and assessment of a control strategy of size distribution of the ore feeding a SAG mill."

Jan 1, 2013

By B. H. Good

This paper describes the research that has been conducted -in an effort to understand the nature and causes of sulphide fires -in the Sullivan Mine. Results of the investigation have led to several theories of the origin: of the fires, the nature of the chemistry and a method for assessing: the fire potential. Recommendations and the implications for the mining operation are also discussed.

Jan 1, 1977

By Gregg Vickell

"High tonnage, low grade gold mines such as Omai’s afford economies of scale that are unto their own insufficient to sustain profitability at today’s depressed gold price. Complimenting profitability objectives is the perpetual challenge to reduce operating costs and optimize unit operating efficiencies while being ever vigilant of issues such as environmental control.Key to achieving these objectives at Omai are throughput and availability gains, gold recovery improvements, cost cutting, a skilled workforce and reliable power generation.This paper attempts a cursory review of startup-to-date plant performance advances and future performance-driven objectives.INTRODUCTIONCommercial gold production at Omai commenced in January 1993 with annual output climbing to 250,000 opy by the end of 1994. A mill expansion completed in August 1996 increased gold production to 340,000 opy by the end of 1997. Current milling capacity is 20,000 in tpd (nom.) with actual capacity exceeding 24,000 mtpd on occasion depending on ore size and competency. Mill feed consists of hardrock (andesite, quartz diorite and rhyolite) and softrock (saprolite, laterite) at a nominal ratio of 70:30, respectively. Present day average weighted grade of the feed is 1.4 g/t gold.PROCESS DESCRIPTIONPrimary crushing, ore handling and the original 12,000 mtpd hard and soft rock SABC mill, hereafter referred to as Mill ‘A’, remains essentially as documented by Konigsmann (1 994) complete with poststartup modifications. The mill expansion, hereafter referred to as Mill ‘B’, features an 8000 mtpd hard rock SABC grinding circuit similar in configuration to Mill ‘A’ and differing only in equipment size. Mill ‘B’ includes a 9000 H.P.,reversible variable speed , single pinion drive, 32 ft. x 15 ft. SAG inill , a 7 ft. short head pebble crusher and two parallel 5400 H.P., 16.5 ft. x 30 ft. ball mills with dedicated cyclone packs consisting of D26 hydrocyclones."

Jan 1, 1999

By J. A. Abols, P. M. Grady

Recovery via gravity is one of the oldest mineral processing methods available. Unfortunately, the use of gravity techniques for gold recovery has been in decline for the past century as more effective chemical processes such as flotation and leach/CIP have been developed. Recently, with the push towards more sustainable environmental outcomes, the benefits of gravity separation have become more apparent. While gravity as a unit process is not usually capable of achieving as high a recovery as flotation or whole ore cyanidation, a combination of gravity devices alone or in conjunction with these processes can offer significant advantages to the operator. This paper reviews the range of gravity devices available, their application and the results that can be achieved by maximizing gravity through the use of a combination of gravity recovery devices. Three case studies are provided.

Jan 1, 2005

By J. Hansen

"ABSTRACTThe paper addresses the application of automated monitoring, control, and navigation to improve dragline performance. SummaryImproving dragline performance in the Canadian coal mines is critical to the continued success of the industry. Draglines represent a large capital investment and coal prices are low by historic standards. This paper argues that the introduction of monitoring, control, and navigation on draglines offers an opportunity to significantly reduce a dragline’s operating cost per cubic metre moved. To place the importance of this in perspective, a North Dakota mine calculates that every 1% increase in dragline productivity means a savings to the mine of US$340,000 per year. MonitorsAutomated dragline monitoring is a well established technology with commercial products available since the early 1980s. The three main reasons for placing monitors on draglines are (Walker, 1993):1. productivity increases: reduce variations between different operators’ performance across different shifts;2. quality increases: increase the percentage of ore and waste loads that go to the correct destination; and3. special projects (engineering projects): justify installing static field exciters and regulator upgrades; implement power management; aid operator training; study high performance buckets, rigging changes, and various excavation sequences.Mines as diverse as Kennecott’s Cordero- Rojo Complex in the United States and Natal Coal Corp.’s Optimum Mine in South Africa report dragline productivity increases of 10% to 20% in the region attributed to the implementation of dragline monitoring."

Jan 1, 2000

By W. Chi, R. Regan, R. A. Washington

"In uranium mines, the purification of underground mine air can be accomplished by the removal of dust particles and radon daughters using filters. Full-scale statistically designed experiments with flow rates up to 10,000 cfm have been conducted at Denison Mines Ltd. on mine air filtration with vermiculite as a filter material. Various filtration bed thicknesses were chosen, with different face velocities through each bed thickness. Results on total dust, respirable dust and radon daughter collection efficiencies were analysed statistically. It is shown that these collection efficiencies are directly related to the filter bed thickness. However, the different face velocities seem to affect only the collection of radon daughters. Optimum collection efficiencies for a clean bed of about 30% were found for respirable dust and radon daughters, and about 41>% for total dust, using an 8-in.-thick bed and a face velocity of 500 fpm. Dust build-up on the filter bed during operation led to an increase in collection efficiency, reaching 40 to 60% after two weeks."

Jan 1, 1973

By J. R. Hart, V. C. Smith, V. P. Babarovich-Hansen, J. H. Schubert

"An introduction and case study of Mintek's latest generation of Milling Circuit controller, the MillStarTM with IES (Interpreting Expert System) is presented. This paper also describes as a case study its installation on a Southern African base metals concentrator plant which has demonstrated improved operation, greatly reduced variation in product quality, as well as increased capacity and availability of the circuit.In this case study, the MillStarTMw as installed along with several other enhancements, including hydrocyclone underflow monitoring, product particle size estimation and flotation circuit stabilisation. MillStarTM utilised the particle size measurement to control grind to within 2% of setpoint, all the while ensuring sump level control, density control as well as mill power optimisation. Mintek' s expertise in the modelling of tumbling mills allowed the development of a specialised optimising controller that ensured the mill was kept in the most efficient operating region.MillStarTM augments the automatic control with useful user interface features, such as on-line trends of any logged variables, historic data warehousing and retrieval and production summary reports.A novel feature that distinguishes the MillStarTMi s the IES (Interpreting Expert System). This is a feature of the software that works with the automatic control code to generate explanations for control actions made by the controller. Often complex control systems are mysterious in nature, reducing trust and eventually resulting in them being switched off. The IES method of exposing the heart of the controller has proved popular and is seen to have potential as a training tool. 314"

Jan 1, 2000

By S. Espley, T. Nyabeze, D. Beneteau

"Many mentorship programs are available to Canadian mining industry employees. Some are company-led initiatives, whereas others are provided through educational institutions or nonprofit organizations. In 2016, a national survey was launched to gain insight into perceptions of what mentorship is, learn about available programs, and collate experiences with formal and informal mentorship opportunities. This paper outlines survey findings and delivers recommendations to industry for consideration in employee mentorship programs. In addition, mining industry leaders share their mentor/mentee perspectives. The intent of this paper is to bring awareness of best practices that can help employees grow and develop in their profession.RÉSUMÉ Les employés de l’industrie minière canadienne ont accès à de nombreux programmes d’encadrement. Certains sont des initiatives menées par les sociétés, d’autres sont proposées par le biais d’établissements d’enseignement ou d’organismes à but non lucratif. En 2016, une enquête à l’échelle nationale a été lancée en vue d’obtenir des informations quant à la perception de ce qu’est réellement l’encadrement, de découvrir les programmes proposés et de comparer les expériences aux possibilités d’encadrement, officielles ou non. Cet article présente les résultats de cette enquête et fournit des recommandations à l’intention de l’industrie afin qu’elle les prenne en compte dans ses programmes d’encadrement des employés. En outre, des chefs de file de l’industrie minière partagent leurs points de vue conseillers/protégés. L’intention de cet article est de sensibiliser les employés aux meilleures pratiques, ce qui les aidera à évoluer et à se développer dans leur profession. INTRODUCTIONThis paper about mentorship in the mining industry is based on voluntary responses to a cold survey, written and circulated by the authors. In 2016, a link to an online mentorship survey was circulated to males and females in the mining industry with the belief that mentorship programs should be available to everyone. The link was delivered via the authors’ personal networks in mining, the CIM Reporter, Women in Mining (WIM) email blasts, LinkedIn, and Facebook. This paper summarizes the answers to the survey questions. The paper is a follow up to one by the same authors (Nyabeze, Espley, & Beneteau, 2010), which was written to gain insight into why women join and stay in the mining industry, and to learn why the overall representation of women is low."

Jan 1, 2018

By T. K. Dichmann, J. A. Finch

"Microflotation, laboratory batch, and in-plant minicell continuous tests were conducted to determine if copper ions not only activate sphalerite but also depress pyrite when the minerals are together. Microflotation tests showed that pyrite recovery increased with addition of copper ions in the pH range of 5-10 when alone, but decreased when sphalerite was also present. Batch flotation tests (Red Dog ore) showed that upon addition of copper, pyrite recovery decreased significantly. The continuous tests (Louvicourt Mine) confirmed this and indicated that with excess copper pyrite recovery can increase. The results suggest there is competition for copper and xanthate in favour of sphalerite. To take advantage of this competition it may be necessary to control the sequence and rate of copper, collector, and lime addition. INTRODUCTIONFlotation, in common with all physical separations, is an imperfect process that results in misplacement of minerals. One source of this imperfection is accidental activation by contaminating metal ions. An important practical example is the misplacement of pyrite to zinc concentrates. Flotation of sphalerite generally requires activation by copper ions, added as copper sulphate. Copper ions are also used to activate pyrite [l] hence there is the suspicion that accidental activation contributes to the recovery of pyrite (Py) with the sphalerite (Sp). However, recent literature has shown that copper ions may make Py less floatable if Sp is also present. Xu et al. [2] conducted continuous minicell tests in-plant at Kidd Creek Operations (division of Falconbridge Ltd.) and showed that while the addition of copper sulphate improved zinc/iron selectivity, it did so as much by reducing the recovery of pyrite as increasing zinc recovery (Figure 1)."

Jan 1, 2000

By Brad Thrall, Howard Bradley, Michael Samuels

"LOCATIONViceroy Minerals Corporation owns and operates the Brewery Creek heap leach gold mine located approximately 55 kilometers northeast of Dawson City, Yukon Canada. Dawson was home of the Klondike Gold Rush 100 years ago. Upon startup in November 1996, the Brewery Creek Mine was the northernmost operating heap leach gold mine in North America and one of the most northern in the world. Located at 64"" 02' latitude, the mine is less than 300 km south of the Arctic Circle. Access to the mine is available at Kilometer 14 of the Dempster Highway, linking Inuvik, NWT and the Klondike Highway, 40 kilometers east of Dawson City. The immediate vicinity is the only part of Canada not glaciated in the Wisconsin advance, which has resulted in an oxide ore deposit due to approximately 80,000 years of weathering - an area unique in Canada.DESCRIPTION OF OPERATIONSIn order to utilize heap-leaching technology successhlly in an extreme northern climate, a number of design features were incorporated into the process flow sheet to operate on a year round uninterrupted basis. Winter temperature may dip below minus 50 ""C, demanding an approach to mining and leaching that is different from heap-leach operations in more temperate climates. Because of the severe winter temperatures, the mine operates approximately 2 10 days per year, while the leaching process is continuous on a year round basis. Run of mine ore (ROM) is placed on the heap beginning in mid April until late October. Overall gold recovery is projected to be 78% over a 325 day leaching cycle with annual production levels of 2.3 million tonnes of ore placed on the pad, with an average of 75,000 ounces of gold recovered per year. The recovery process utilizes conventional sodium cyanide leaching, carbon adsorption, high pressure stripping, thermal reactivation and acid washing, and on-site smelting.HISTORYFollowing a comprehensive governmental and public review of the proposed project, a Class A Yukon Water license was issued in August, 1995. Construction started in 1995 and leaching commenced in October 1996.A Socio-Economic Accord with the Tron Dek Hwech'in First Nations provides for employment, contract, and scholarship opportunities for First Nations citizens."

Jan 1, 1999

By H. A. Dakin

"An introduction to the metallurgical requirements of the Flin Flon concentrator reveals the magnitude of ore blending which is required in its operation of three flotation circuits. The resulting variability in flotation heads which has in-creased the separations complexity justified the development of an on-line analysis system.This paper provides a summary of the development and operation of that system. Particular attention is devoted to the problems encountered and where possible their solutions; as the requirements of accurate information and minimum downtime of the sampling system and x-ray analyzer are considered essential. The addition of a recess central computer has provided information in a more easily understood form and as well has allowed the start of automatic reagent control.An indication of the on-line analysis system's value to the concentrators' operation is provided by an examination of the plant in metallurgical data and reagent costs in previous years.The metallurgical plants of Hudson Bay Mining and Smelting lie adjacent to the city of Flin Flon on the Manitoba-Saskatchewan boundary. Plant operations commenced in 1930 treating copper-zinc ore from the local mine. In recent years ore bodies near Flin Flon and in the Snow Lake area, about seventy-five miles east, have been brought into production.By the beginning of 1973 the number of producing mines had increased to nine; with all the ore being handled by the Flin Flon concentrator. Figure l, showing mine ore assays during 1973 indicates the variation in metal content possible."

Jan 1, 1974

By T. Norvell, R. Gosine, S. O’Young

"This paper describes the use of dynamic scheduling and discrete event control to provide coordinated control of multiple automated vehicles. This work has been carried out within ongoing research into multi-robot coordination developed around the underground mining scenario. Demonstrations using scaled laboratory models of underground mines illustrate the potential for this technology for full-scale implementation for mine-wide automation. IntroductionIn the past decade, the mining industry has been improving the efficiency of underground mining operations. Robotics and automation have demonstrated the potential to further reduce costs. Tele-operation of underground vehicles from above ground and autonomous navigation have reduced travel delays and allowed for single operator control of multiple vehicles (Bloomquist and Hinton, 2001). Other recent projects include the automation of the digging process as well as the drilling and blasting operations. Infrastructureless guidance systems are also being developed (Bloomquist and Hinton, 2001).Mine-wide automation requires significant developments at two levels: (1) the development of mining robots capable of performing tasks either autonomously or semiautonomously; and (2) the development of methods for automating operations at a systems level. This paper focusses on the latter, and describes a general framework for the coordination of multiple mobile robots in an unstructured or semi-structured environment."

Jan 1, 2003

By Brad Thrall

"Viceroy Resource Corporation of Vancouver, B.C. has recently developed the Brewery Creek Mine, an open pit heap leach gold mine 55km East of Dawson City in Yukon, Canada. Mineable reserves are 17.1 million tonnes of ore grading 1.45 grams/tonne, containing 24.8 tonnes (797000oz) of gold. Ore processing employs the heap leach technology using run of mine ore. 1996 highlights included construction of 158,000 m2 of leach pad, placing 1.9 million tonnes of ore at a grade of 1.46 gpt on to the leach pad, construction and successful commissioning of the ADR plant, and pouring of the first gold bar on November 15th.Permitting this mine has drawn significant attention because the heap leach technology, while proven in other jurisdictions, has not been used in Yukon where winter site temperatures routinely reach -45 C for extended periods.IntroductionFollowing a comprehensive governmental and public review of the proposed project, a Class A Yukon Water license was issued in August, 1995. Construction started in 1995 and leaching commenced in October 1996. The Brewery Creek Mine is in Yukon, the home of the Klondike Gold Rush nearly 100 years ago. This is the only part of Canada not glaciated in the Wisconsin advance so there is oxide ore resulting from about 80,000 years of weathering -unique in Canada. Discontinuous permafrost is present on site and has required special consideration in the design. Winter temperatures dip below minus 50 C, demanding an approach to mining and leaching that is different than in more temperate climates.Project DescriptionThe mine comprises 8 shallow, largely oxidized gold deposits along a 7km corridor. An 8 year mining program will extract 17.1 million tonnes of ore grading 1.45 grams/tonne, containing 24.8 tonnes (797,000 oz) of gold. The strip ratio will be 1.35: 1. Overall gold recovery is projected at 78%. There will be 2.3 million tonnes of ore placed on the pad annually, with an average of 2.57 tonnes (83, 000 oz) of gold recovered per year. Because of the cold winters, the mine will operate approximately 210 days per year, while the leaching process will operate on a year round basis. Run of mine ore is placed on the heap 150 days per year. The recovery process utilizes conventional sodium cyanide leaching , carbon adsorption, caustic desorption, and on-site smelting. Peak employment during mining is 145 and winter staff is reduced to 45."

Jan 1, 1997

By P. Dauphin

"CANMET’s Mining and Mineral Sciences Laboratories have developed the Canadian Mining Technology Network (CMT-Net), a website to provide industry with up to date information on technologies in several areas. This paper gives background on the Mineral and Metal Processing sector, describes the steps leading to the development of the websites strategy and gives a tour of CMT-Net. IntroductionThe government of Canada is developing a strategy aimed at fostering the development of value-added activities in the area of mineral and metal processing (MMP). Natural Resources Canada (NRCan) and Industry Canada will partner in delivering on this strategy. Instrumental in defining the main thrusts of the value-added strategy was a series of consultations held across Canada with representatives of companies and organizations active in the sector. The objective of the consultations was to identify barriers to the development of activities which add value in the sector, as well as point to positive factors.Following the consultations, a discussion paper was produced, “From Mineral Resources to Manufactured Products: Towards a Value- Added Mineral and Metal Strategy for Canada” (Natural Resources Canada, 1998). The paper reviews the sector’s structure and main statistical information, lists some of the positive factors and barriers to value-added activities and defines a new partnership between industry and government that will lead to more valueadded activities. The main objective of the paper is to serve as a discussion document between stakeholders during the development of the strategy."

Jan 1, 1999

By P. D. R. Maltby

"The Canadian Institute of Mining and Metallurgy has undertaken to host the XIV International Mineral Processing Congress to be held in Toronto at the Royal York Hotel from October 10 to 16, 1982. The theme of the Congress will be ""Worldwide Industrial Application of Mineral Processing Technology."" The program will include 10 sessions and numerous field trips to the different mining areas of Canada.For prospective authors, the preliminary program includes sessions on,1. Flotation - plant practice, equipment design, simulation, control and economics.2. Comminution - plant practice, equipment, design, simulation, control, wear, energy consideration and economics.3. Round table seminar on large grinding mills.4. Round table seminar on modern and future plant design.5. Mineral processes to recover precious metals.6. Mineral processes to recover energy minerals (coal, uranium).7. Mineral processes to recover industrial minerals.8. Round table seminar on the environment and ecology and how the different countries cope with associated problems.9. Materials handling with an emphasis on agglomeration techniques ereconentration methods, solid-liquid separation.10. Open session to deal with topic emerging from general demand."

Jan 1, 1980

By Olli Haavisto, Juha Timperi

"Accurate on-line assays of mineral slurries are the basis for effective operation of flotation circuits. Typically the elemental content measurements are obtained by an X-ray fluorescence (XRF) analyzer, which samples the process lines and performs the analysis concurrently line-by-line. For a more frequent measurement of each slurry line the XRF measurements can be complemented with reflectance spectrum information. In reflectance spectroscopy the absorbance properties of the slurry in the visible and near-infrared wavelength range are analyzed. The advantage of reflectance spectroscopy is that measurements can be obtained quickly and simultaneously from several slurry lines. However, since the shape of the spectrum is only indirectly affected by the slurry elemental contents, frequent calibration of the measurement against the XRF analyzer is necessary. This study elaborates the combination of reflectance spectrum analysis with XRF. Results of laboratory tests for different slurries are presented and the operation of the system in a copper-zinc flotation plant is demonstrated.IntroductionElemental analysis of mineral flotation slurries is the most important factor in evaluating the performance of concentration processes. Timely on-line assays are also used as the basis for controlling the circuits and ensuring that the grade and recovery targets are reached. X-ray fluorescence (XRF) is the dominant technology in on-line elemental slurry analysis, and typically centralized XRF analyzers are used. The advantage of a centralized analyzer is that one measurement probe can be used to acquire the data from several slurry lines. This reduces the overall operating cost of the system when compared to distributed analyzer system design with several measurement probes requiring maintenance and spare parts. Slurry samplers are installed in the interesting process flows and representative sample flows are brought to the analyzer, where the slurry is further sampled and measured consecutively by the XRF analyzer. Due to the centralized structure of the analyzers and consecutively measurement of the sampling lines the sampling interval per slurry line can be relatively long. In larger concentration plants with several sampling lines a typical assay interval is in the range of 10-20 minutes."

Jan 1, 2016

By Göran Bäckblom

The Swedish mining companies LKAB and Boliden, the equipment supplier Atlas Copco, the general contractor NCC and the specialist company Reflex joined forces in 2005 to advance the field of rock technology for the purpose of mining and underground construction. The creation of the company Rock Tech Centre is part of the strategy developed by the Swedish mining industry to strengthen co-operation with industry, academia and society. This paper outlines the current R&D strategies developed for the industry in general, discusses what focus areas are selected and provides some details on the current RTC project portfolio, especially faster and better drifting.

May 1, 2006

By M. Doggett

All 231 Canadian primary gold mines that produced from 1946 to 2004 were analyzed with respect to their production and economic characteristics. Trend analysis revealed that the average annual capacity of Canadian gold mines, as measured by ore processed or gold produced, has increased over time. Conversely, the average grade of gold mines has decreased over time. The distribution of gold output is highly uneven: for example, the 22 giant mines producing more than 100 t (metric tonnes) of gold account for 62% of total output. Small mines producing less than 10 t Au account for 54% of total mines, but less than 4% of total gold. Each historical mine in the database was evaluated on the basis of a set of economic and technical assumptions to determine if it would be economic to develop today. Based on the net present value using an 8% discount rate, only 103 of the 231 mines were determined to be economic. About 80% of the uneconomic mines had less than 10 t of contained gold, and 63% had less than 5 t. It is concluded that these small mines would not be viable today due to a combination of real capital cost increases, and more stringent permitting and environmental regulations. The implication is that future gold supply in Canada will hinge on the discovery and development of a new generation of larger mines. Given that only one giant mine has been discovered in the past 20 years, it seems likely that gold output will decrease in the future.

Jan 1, 2007