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By A. Piche, J. Nantel

"This paper describes the recent developments in Canada toward the establishment of a Canadian Centre for Mining Automation and Robotics, at McGill University and École Polytechnique in Montreal. The role of the Mining Association of Canada (MA C) and of the National Advisory Committee on Mining Automation will also be reviewed. IntroductionIn order to remain competitive, the mining industry must increase its productivity and reduce its costs. In the last two decades, this objective has been achieved through mechanization. From now on, any further improvement in productivity will be gained through increasingly more automated mining equipment.Recent international developments following the Versailles Economic Summit in June 1982, having given rise in Canada, to a renewed interest in applications of robotics and automation to mining.The mineral industry in Canada is at a crossroads. Competition in emerging from everywhere: lower grade ore bodies, increasing distances between viable mines and markets, third world massive production of certain commodities, substitution of "" space age"" materials (ceramics, plastics, composites, etc.) for metals.On the positive side, it is generally believed that present mineral commodities, i.e. base metal, gold, iron, industrial mineral s, etc ., will continue to be in high demand for centuries to come despite substitution. New applications for conventional metals will be found and the enhancement of certain properties of these conventional metals mean continued demand. For some mineral commodities, there will never exist an y substitute."

Jan 1, 1988

By Peter N. Calder

Long range mine planning involves developing a mining sequence that schedules the extraction of the ore and waste materials within a final pit limit. The objective is to define a sequence that best meets the defined strategic objectives. The main steps in the creation of an open pit mine plan are the final pit limit design, the design and sequencing of the mining phases, equipment selection and operating cost estimation. Flexibility is the key strategic element in developing a mine plan. Planning the extraction sequences and rates for the various mining areas is a challenging and demanding activity. It is often necessary to consider numerous alternative strategies and what if scenarios. The number of alternatives that can be studied with limited manpower and time resources is restricted. In order to investigate strategic aspects of mine planning, a system to generate workable mine plans rapidly is required. The concept of Visual Mine Planning is that the engineer can visualize the current plan, easily change a component of the plan, such as the annual cut-off grade schedule or the production rate within a particular Phase, and immediately see the effect on the mineralogical and cash flows. If the desired result is not achieved, a change is made and the effect is again immediately seen. This paper presents results of research in this area conducted at the Pontificia Universidad Católica de Chile. The work includes the examination of cut-off grade strategy, sequencing, blending, stockpiling and shovel-truck fleet requirements using simulation.

May 1, 2003

By Philip M. J. Gray

"The real cost of conversion from ore to semi-fabricated non-ferrous metals has been increasing for many years. Consumer resistance and improved knowledge and techniques now available justify investment in revolutionary as well as evolutionary methods of extraction. Metallurgical factors in current practice which preordain high production costs are identified as: smelters' demand for clean minerals, use of processes with low intensity of working per unit of reactor volume, use of low-velocity reactions, use of long reactor retention times relative to the speed of reactions, dilution of values in solution and commitment to electric power as a source of energy.Six new types of flowsheet are proposed for processing from ore to metal, composed of steps which are economic to construct and maintain and making maximum direct use of fossil fuel and the energy content of minerals. The basic knowledge and technology for developing these flowsheets exists. It is very tentatively suggested that these routes might reduce the capital and production cost for conversion of ore to metal by 30-50%."

Jan 1, 1980

By J. Béland, C. Giguère

"The auriferous mineralization at the Sigma-2 gold mine occurs in quartz-carbonate-tourmaline veins emplaced in a fractured granaphyre layer in the upper part of a differentiated gabbro-diorite sill. Kinematic indicators show that fracture planes were active as strike slip, dip-slip (reverse) and tensional faults.Measurements of attitudes of fractures and movement vectors indicate eight different sets that can be grouped into three systems: (I) an east-west oriented system includes a subvertical set and two other sets dipping north and south respectively; (2) a subhorizontal system of two conjugate sets bisected by a third tensional set; and (3)a system of sub vertical conjugate northeast and north-northwest trending sets.Kinematic analysis indicates that the subvertical set of the east west system was subjected to dextral strike-slip movement activated by a northwest-southeast compressive stress whereas the bulk deformation resulting from the remaining and subsequent seven sets can be explained by a protracted subhorizontal north-south compressive stress.The valuable gold mineralization is found principally in the fracture-filling veins of the subhorizontal system and subordinately in the other sets; among these other sets, the NE trending subvertical one is slightly more favourable.The over-all tectonic picture is that of an early mild dextral strike slip faulting in a ductile-brittle medium followed by a general flattening involving, first, a vertical and, later, a lateral extension by fracturing in a medium that had become brittle.The structural features are such that the differentiated sill could not be the source of the auriferous hydrothermal solutions."

Jan 1, 1990

By J. Olaf Sund

"THE November issue of the Bulletin carried in it ""Origin of the New Bruns1viclc Gypsum Deposits"" by J. Olaf Sund. This paper was a digested account of a Master's thesis at the University of New Brunswick which was a very useful compendium of information of gyp-sum in New Brunswick. It was a warded the President' s Gold .Medal and the First Prize in the Graduates' Section of the Students' Essay Competition. The present writer presents his congratulations to the winner of the competition. At the same time he must comment on the use of certain terms and on certain conclusions presented in the paper.The term ""unconformable"" has been used in several places in the paper to describe the relationship of gypsum to anhydrite in various deposits in New Brunswick in a sense which is quite alien to the accepted meaning. It has long been known tl1at the gypsum at the surface or near the surface in deposits in the Atlantic Provinces has come from hydration of anhydrite by surface and ground waters. The gyp-sum must be looked upon then as an alteration or even a weathering product. It cannot in this sense be called ""unconformable"" and thus arguments using the word in the accepted sense are invalid."

Jan 1, 1960

By C. J. Rockingham

"A comparative study of sulphide textures has been carried out on samples from four Archean copper-zinc massive base metal sulphide deposits: Kidd Creek, Ontario; Lake Dufault -Norbec, Quebec; Hood River-41, N. W. T.; and Geco, Ontario. These deposits have undergone metamorphic recrystallization under a range of conditions, and results of this study indicate that certain sulphide textures may be used as qualitative indicators of metamorphic grade, whereas other cannot.The sulphide textures of most value in this regard are sulphide grain sizes, which increase with increasing metamorphic grade, and the presence or absence of sedimentary/diagenetic textures, which are destroyed at the lower amphibolite facies of metamorphism. Chalcopyrite and pyrrhotite intergrowths in sphalerite increase in size, in degree of coalescence and in the ratio of unmixed pyrrhotite to chalcopyrite inclusions with increasing metamorphic rank. With increased metamorphic grade, the pyrrhotite intergrowths change from rounded inclusions on grain boundaries to rod-like shapes along sphalerite twin planes. There is also a general increase in the relative proportion of pyrrhotite in the deposits. Textures that appear to have little value as indicators of metamorphic grade are sulphide deformation textures, and triple junction point angles and their standard deviations, which show little variation from the lower greenschist to the upper amphibolite facies of metamorphism. The presence or absence of myrmekite-like magnetite also has little value in determining the relative metamorphic history of these deposits, as it is a product of local contact metamorphism."

Jan 1, 1980

By J. P. Aiello

"INTRODUCTIONWhile this paper deals specifically with potential coal use at the Cold Lake Project of Esso Resources Canada Limited, a majority of the technical aspects of coal conversion could apply to any oil field and industrial boilers or stearn generators. In 1962, Imperial Oil Limited's production arm (the forerunner of Esso Resources), began examining methods of extracting bitumen from a 50 m thick layer of oil sand buried 450 m below the surface in the Cold Lake area. Almost two decades of research followed to develop an in situ oil sands recovery technology that made commercial production feasible.A $13 billion mega project that would have produced 22 000 m3/d (141 000 barrels/day) of synthetic crude oil (160 000 bpd of bitumen) was shelved in 1981, and ultimately replaced by a phased development strategy, involving smaller production units, to bring blended bitumen production on stream as markets and prices permit.The first two phases came into production in 1985. There are currently a total of six phases in production with four more in the construction stage. Each phase has 130to 140production wells (initially) and a central plant with water treatment, crude treatment and stearn generating facilities capable of producing 150 m3/d (9500 bpd of raw bitumen). The stearn generation section for each phase consists of three 180millionBtulhour oil fieldsteam generators.In its natural state, the bitumen is too thick to be recovered using conventional oil recovery techniques. At the Cold Lake Project, bitumen is recovered by a method called cyclic stearn stimulation. Water is pumped to the central plant where it is treated and heated to produce high pressure, high temperature steam. During the steam cycle, this steam is transported in insulated pipelines to the wells for injection into the oil sand formation. This cycle lasts from 30 to 50 days, heating the formation and causing the bitumen to flow. Following an initial flowback period, a surface based artificial lift system pumps the heated liquid bitumen, mixed with water and gas, out of the well and back to the central plant. The water and gas are separated from the bitumen, with the gas being used to provide some of the fuel for the stearn generators and the water being treated and recycled. Approximately 5% of the water cannot be recycled and is disposed of by injection into deep formations . The bitumen is blended with a diluent and shipped by pipeline to market."

Jan 1, 1989

By B. Morrison

"The Kiruna Electric System is a recently developed inclined ore haul age system for underground mining operations. Although an initial investigation was carried out at the Swedish underground iron ore mine LKAB almost three decades ago, it was not until 1981 that the resources of LKAB, ASEA and Kiruna Truck AB were combined to investigate, and subsequently develop an ""all- electric truck"" for the mining industry.It has long been appreciated, that major economical advantages could be realized by a mining operation through an extension of the cost-effective life of the existing ore hoisting system by the use of ramps to haul ore up to the main haulage level. Diesel truck s have been used and are being used for ramp haulage. Their use however, is limited due to ventilation and operating costs restraints.There are numerous instances of orebodies, located within a couple of hundred metre s of surface, or below an existing hoisting facility, being developed by ramp access while the shaft is being sunk. Development of an orebody via ramp access has many advantages to a mining operation where mechanized mining is to be practiced. These advantages are both practical and economical; generally falling within the over-all umbrella of the phrase ""cash flow"" mining.The decision to sink a shaft is a major committment by any mining company, regardless of size and financial reserves. Extensive diamond drilling, both shallow and deep must be carried out before a decision can be executed. This constitutes a major financial expenditure over an extended period of time.The decision to sink a shaft must be weighed against the reliability of geological interpretation of the deep diamond drilling results, the stability of the mineral market and potential fluctuation in ore prices and interest rates."

Jan 1, 1989

By Robert B. Parsons

"Next month will mark the anniversary of the release of an important federal study on a mineral policy for Canada. The study, entitled ""Mineral Policy-A Discussion Paper"", provides well-researched coverage of a broad range of issues that are of interest to the mining industry. Unfortunately, there is a real possibility that the discussion paper will wither and die on the vine, unless the federal and provincial governments, and the private sector, collectively ensure that some of the key considerations which are raised by the paper are acted upon.IntroductionAlmost one year ago, on March 8, 1982, Federal Mines Minister July Erola released an important study entitled ""Mineral Policy-A Discussion Paper"". The discussion paper, which presents the government's assessment of the opportunities and constraints facing the Canadian mineral industry in the 1980s, was prepared within the context o f three principal objectives-strengthening the resource base on which the industry rests, ensuring the adequacy of research activities needed to support development of the resource, and furthering the development of markets for the resource It is clear that, in today's economic climate, not even the most generous incentives would turn the industry around: what is needed is a sound base for future development, when this is possible. In this regard, the discussion paper is an excellent stepping stone, in that it reviews a wide range o f fundamental policy issues which touch on all facets o f the mining industry."

Jan 1, 1983

By Robert M. Hopkins, Craig C. Monahan

A corrosion survey was performed on ten selected H-piles which support a reinforced concrete wharf located at Trepassey, Newfoundland. Approximately 900 thickness measurements were taken at twelve different locations in each off our zones on the steel piles: the splash (atmospheric) zone, the intertidal zone, the low tide zone and the submerged zone. Results show that over the 2o-year life of the wharf, corrosion has been most severe in the splash, low tide and submerged zones with average corrosion rates for the flanges of 6.95, 9.45 and 6.86 mils per year (mpy}, respectively, and average corrosion rates for the webs of 5.13, 4.12 and 3.45 mpy, respectively. Minimal attack was found in the intertidal zone where the average corrosion rate was only 1.66 mpy on the flanges and 1.37 mpy on the webs. Such a pattern of attack is frequently observed f or steel piles partly submerged in seawater. The abnormally low corrosion rate associated with the intertidal zone is generally explained as being due to cathodic protection induced by the high corrosion rate in the adjacent low tide zone. Analysis of the corrosion data obtained for the Trepassey wharf would suggest that this explanation might be incorrect. An alternate hypothesis has been brought forward which better accounts for the extremely low corrosion rate observed in the intertidal zones of these piles.

Jan 1, 1990

By Jorgen Elbrond, Yve Lizotte

"A mathematical procedure for determining the underground mining level layout which minimizes the total costs of excavation and haulage is described. This procedure has the advantage over previous graphical procedures of being easily amenable to microcomputers. The paper demonstrates through examples how the procedure can be applied to minimizing discounted costs of level layout as well as providing the optimal location of a production shaft.IntroductionIn recent years there have been numerous publications in mining journals concerning the minimization of mine haulage costs. With the rapid escalation of energy costs during the last decade it is not surprising that several studies applying queuing theory, simulation and mathematical programming to mining related transportation problems have been successfully undertaken. Because of the increasing availability of various sizes of computers these techniques have gained considerable popularity as evidenced by the numerous commercial packages presently being marketed.The publications concerned with haulage cost minimization are generally concluded along the lines of ' ... haulage costs at production rate x will be minimized by assigning y units to location z...'. Details about the route followed and whether it guarantees a minimization of costs are seldom considered. Route data has to date been manually resolved and used for input to developed programs. It would appear that no program has been developed to date which simultaneously minimizes costs by both fleet assignment and routing network resolution.Another important factor in transportation problems is the investment cost associated with the routes; road construction costs or, in the case of underground levels, drift excavation costs. Except for special cases the transport network which minimizes haulage costs only will not provide a minimum excavation cost solution.Zarnbo(1) illustrates by graphical and mathematical procedures how central 'facilities' can be located to simultaneously minimize investment in the transport network and haulage costs. Unfortunately these procedures and others recently applied to mine haulage problems do not provide solutions to the generalized problem. Also because these procedures are geared to graphical solutions and hand computations whereby certain possibilities can be 'visually' eliminated, they can be tedious to program and present storage capacity constraints with current microcomputers."

Jan 1, 1985

By Jaime V. Ongpin

"The author will give a capsule history of Benguet Corporation and attempt to identify its operating environment and underlying ""strategy"" until 1974, when the company's management assumed office. The company's operating environment and ""interim strategy"" from 1975 to 1980 will be described. The discussion will cover an environmental forecast and define the company's"" strategy for survival"" for the balance of this century.IntroductionIn December last year, I was asked to deliver a pa per for the management lecture series a t the Asian Institute of Management in Manila. The paper was entitled "" The 1970's: A Decade of Disaster For New Mining Projects"" . In that paper, it was my task to review the results of new mining projects in the Philippines during the previous decade. The task was not a happy one, for the results themselves were not only unhappy, but disastrous on a scale unprecedented in Philippine history. Out of a total of 17 major mining project s involving an aggregate capital investment in excess o f US $2 billion during the 1970s, only three project s have been profitable, and all the rest have either gone "" belly up"" or are teetering on the very edge of financial disaster.It is in the context of this shocking record of widespread financial dislocation in the Philippine mining industry, (which in varying degrees appears to have been paralleled in virtually every other country in the world where mining is an important sector of the economy) that I address myself tonight to the theme of this symposium. My paper is entitled ""Risk Management Strategy in Mining"" and it is sub titled ""Can Benguet Corporation Survive to Celebrate its Centennial in 2003?"". I have inserted the word ""Strategy"" and added the subtitle, because I wish to make it clear first, that my presentation to you tonight will be focused exclusively on the strategic aspect s of risk management, and second that I will limit myself to Benguet's own ""in-house"" experience and perspectives on this subject. I would caution you therefore, to consider my views within this restricted framework, and in light of the particular and sometimes peculiar circumstances within which Benguet Corporation operates."

Jan 1, 1983

By R. W. Guill

"The Apex Mine is currently scheduled to be brought back into production by Hecla in the first quarter of1990. Its projected productivity rate will be exceptionally high for a small underhand cut and fill mine.The ore mined at the Apex Mine occurs within a pipe-like structure as a series of iron oxides containing both gallium and germanium, plus significant amounts of silver, zinc, lead, and copper.Ground conditions in and around the ore zone have dictated that unique approaches be utilized. To date, these have included a prototype 0.5 cu. yd diesel LHD, and the use of fibrous shotcrete in 4ft by 7ft headings, and the first pneumatically-placed cemented backfill in North America. Above all else, it is the combination of new technologies with a small and dedicated workforce which has allowed for the successful development of this ore body.IntroductionThe Apex Mine is an example of the typical small underground project. It has high grade, but low tonnage and is deposited in poor ground. In such cases, conventional planning and thinking generally results in an uneconomical evaluation and negative production decision. Fortunately, some unconventional thinking was allowed to take place during the planning and evolution of the Apex Mine development. The result now serves as an example of how such unconventional thinking can lead to the type of innovations described below.The job necessitated the development and use of new equipment and materials to execute a highly flexible underhand cut and fill mine design/pneumatic backfill concept, that must be constantly modified as different than assumed conditions become evident in and around the ore zone."

Jan 1, 1990

By Peter Moon, Lloyd G. Campbell

"How well supervisors supervise, and are supervised determines whether management's goals will be reached and ...how effective the work force will be... Upper management must recognize the potential returns of viable training programs for both management and mine workers… The key to performance, from the standpoint of safety and productivity, is the ability of the line supervisor to manage(1).In this article, the authors will share their experiences in supervisor selection and development. They also draw on the work of two men in particular, Douglas Bray and William Byham, both of whom have contributed significantly to the understanding of supervisory development and training.IntroductionYears ago, there was not much training for supervisors. They worked under an authoritarian style of management and modelled themselves on it. They were generally selected for their skill as miners, mill operators or mechanics. Things have changed. Today, companies have different needs. The selection of supervisors is far too important to rely on guesswork. Progressive companies want supervisors who think like managers - supervisors who know how to plan and organize, set performance standards and monitor them, analyze problems, develop solutions, show sound judgment and deal effectively with people. The evaluation of these supervisory ""dimensions"" is best accomplished through the use of an assessment centre. The Assessment Centre Method increases the accuracy of predicting the future success of candidates being considered for promotion.Mining and other resource companies use assessment centres to select the most suitable people for supervision. The Assessment Centre Method is based on extensive research. It eliminates hit-and-miss selection methods by using several different exercises that simulate the problems and activities that candidates would face if they were promoted into supervision . In other words, they get a realistic "" sample"" of the supervisor's job and are required to deal with and manage interpersonal and problematic circumstances."

Jan 1, 1990

By R. W. Thompkins

The two largest contributors to silicosis in machine men are dust from drilling and dust from blasting. With the advent of the shatter-cut method of blasting, the evils of blasting dust were greatly reduced. The problem of dust from drilling has been attacked from two different angles: (1) The adoption of dustless frontheads or enlarged water tubes, both of which have proved capable of reducing dust concentrations; and (2) The adoption of better ventilation. Many operators are loath to adopt dustless frontheads or enlarged water tubes on Leyner drills because of the increased repair costs on drills, and also because it has been found difficult to enforce 'the proper usage of dustless machines: for example, workmen sometimes plug the vents in the fronthead.

Jan 1, 1943

By G. H. Blackwell, A. J. Sinclair

"The main components of a ""PC” -based mineral inventory system are described in a sequence common to many real reserve/ resource estimation projects and in the practical context of problems and decision-making typically encountered in such studies. Some components are designed particuarly to improve the geostatistical instructional capability of the package. An important part of this approach involves the use of widely available software for data manipulation and evaluation in the design of a mineral inventory study progressing to mine design and feasibility. A variety of more or- less fixed routines written in high level languages provide acceptable computational speeds on a personal computer. These critical segments are linked by simple, short, compiled Basic programs easily adjustable to various data configurations and needs. IntroductionGeostatistical mineral inventory estimation has progressed greatly since its slow dissemination during the 1960s. The mining industry generally has accepted the benefits of the technique, notably the quantification of grade and geology, an indication of error in grade estimation, and of the mined volume / grade variance relationship (Clark, 1979, Isaacs and Srivastava, 1989).Acceptance has been slowed, first by complexities of geostatistical theory and second by a bewildering variety of computer systems and applications programs. Continuing improvements in education will facilitate a better understanding of the underlying theory.The purpose of this paper is to describe, in a practical context, the development of a geostatistical-based approach to reserve/resource estimation. The approach integrates various existing commercial software packages with a wide selection of programs developed by the authors for personal computers which estimate mineral inventories and educate users in the techniques applied; that is, the QMIN system.It is hoped that the approach presented here will convince mining and geological engineers concerned with resource estimation, of the soundness of geostatistical methods and its broad potential to their problems."

Jan 1, 1992

By Robert B. Parsons

"It is easy to throw darts at government - and government often deserves to be a target. This month, Tax Notes examines tax legislation from a different angle, and sees some bright spots.The following article is based on a paper presented by the author at the International Gold Symposium in Rio de Janeiro in August 1989Introduction""No man's life, liberty, or property are safe while the Legislature is in session.”With one federal government, ten provincial governments, and two territorial governments all claiming to have constitutional rights to tax and otherwise regulate Canada's mining industry, and with each of these thirteen governments pursuing their respective rights with some vigor, government involvement in one way or another is an accepted way of life in the industry. While one's initial reaction to government involvement in an industry might be one of scepticism or fear, generally speaking the federal, provincial, and territorial governments in Canada tend to be pro-mining. They recognize the importance of the mining industry to Canada, especially in terms of job creation and exports. It is not surprising, then, to find that an array of valuable fiscal incentives are available to the industry through federal and provincial legislation.This paper summarizes the principal incentives that are inherent in Canada's tax legislation, as well as the Canadian Exploration Incentive Program. Although it is beyond the scope of this paper to deal with all of the incentives that are available, it is noted that various forms of federal or provincial assistance are also available outside of specific legislation, through negotiation with government departments. This latter type of assistance is generally directed toward helping with the cost of infrastructure such as roads or hydro lines, or Jess often toward loan guarantees or similar financing assistance."

Jan 1, 1990

By K. K. Feng

"Spontaneous combustion has always been a problem in coal mines and is identified mainly with the mining of low-rank coals. The liability of coals to spontaneous heating is only one of the factors in determining whether spontaneous combustion will occur. However, knowledge of the relative oxidizability of the coal is a useful factor to take into consideration when selecting new coal seams and mining methods for future mine development.Four methods (static isothermal, ignitability, adiabatic and dynamic) have been used to compare the relative liability of Canadian coal to spontaneous combustion and to investigate the mechanism of spontaneous combustion of these coals. Among these f our methods, the static isothermal method is considered to be the best indicator of the susceptibility of various coals to spontaneous combustion. Western mountain coal adsorbs more oxygen and has a higher tendency to undergo spontaneous combustion than the Harbour seam coal of Nova Scotia. It has also been observed that a higher methane content in coal will indicate a lower liability to spontaneous heating."

Jan 1, 1985

By P. Venkatasubramanian

"In recent years, computer based ""expert systems"" have been taking on large complex tasks for which no exact algorithmic solutions are feasible; tasks previously reserved for human experts requiring empirical knowledge, judgment, experience, developing a ""best solution "" by the use of plausible reasoning. Mining method selection is an appropriate area for the application of an expert system because extensive and detailed knowledge is required to make a ""best"" interpretaion of frequently ambiguous geological information. The expert system model presented here would enable users to apply expert knowledge to the evaluation of methods for coal deposits mineable by underground methods. IntroductionIn an increasingly complex and specialized world, human expertise spanning scientific, economic, social and political issues plays an increasingly important role in all branches of engineering. This is especially true of mining engineering. The number of scientific and professional disciplines involved in mine planning and evaluation, illustrates the problem. A conservative list includes geology, geophysics, geotechnics, hydrology, mining, environment, and economics.Engineers are almost obliged to be experts in at least one of the above disciplines if they are to handle the volume of information required in the planning process. Although computers have become indispensable tools in many endeavours, there is continued reliance on the human expert's ability to identify and synthesize these diverse factors, to form judgments, evaluate alternatives , and make decisions . This is especially true with regard to problems that are not easily amenable to precise formulations.The precious resource of human expert is also fragile and transient. The departure of a crucial expert from an organization ma y cause serious dislocations. Senior experienced people impart their knowledge of younger colleagues, but the demand for their talent may not leave sufficient time for such educational efforts. In recent years, computer based "" expert systems"" have been taking on large complex tasks for which no exact algorithmic solutions are feasible; tasks previously reserved for human experts, requiring empirical knowledge, judgment , experience, developing a ""best solution"" by the use of plausible reasoning."

Jan 1, 1988

By Robert B. Parsons

"It is generally felt that flow-through shares face a bleak future under the set of tax rules proposed in the federal government's tax reform white paper. Industry and government circles are beginning to give thought to alternatives to flow through as a mechanism for facilitating equity financing in the exploration industry. Despite suggestions that grants and tax credits may someday be on the table, industry is sticking to its position that there is no substitute for flow-through. Alternatives toFlow-throughProposals in the federal government's tax reform white paper have cast significant doubt on the ability of the mining industry to raise risk capital after 1989by way of flow-through shares. There is serious concern that introduction of the ""cumulative net investment loss"" (CNIL) rules, the phase-out of the mining explorati0! 1 depletion allowance (MEDA), and the Increased capital gains inclusion (750/0 versus 50%, at present) will make the economics of flow-through so unattractive after 1989 that these shares will hold little appeal to most investors. The question might be raised, then, as to what alternatives exist by way of tax or other government assistance that could help the exploration sector.The purpose of this paper is to survey the types of government incentives that could be of some value to explorationists and to the mining industry in general. For the past several years, flow-through has been in the spotlight insofar as incentives to the exploration industry are concerned. Other potentially useful and attractive incentives have been partially hidden in the shadow of flow-through. These incentives, in certain circumstances, can be of considerable benefit, and should not be ignored."

Jan 1, 1988