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By M. Haase

[ ] How important is a robust communications system for your mine site in order to meet operational and safety requirements? Do you currently have VSAT in place and need a low cost, high quality multi-line VoIP phone system at the site? By adding a single, compact piece of hardware, you can utilize your existing satellite internet connection and have as many as twenty-four separate phones lines from a single unit. The platform is scalable for any size of operation and can be implemented above or below ground.

Jan 1, 2012

By L. Yuan

In the U.S. coal mining industry, most spontaneous combustion fires occur in longwall or worked-out gob areas. In order to reduce the fire hazard caused by spontaneous combustion, it is important to understand how ventilation and gob characteristics affect the spontaneous heating process. Given the difficulty to conduct field tests in such an environment, a computational fluid dynamics (CFD) study was conducted to investigate the effects of ventilation and gob characteristics on the spontaneous heating process in longwall gob areas. Two longwall panels with a bleeder ventilation system were simulated. The spontaneous heating is modeled as the low-temperature oxidation of coal in the gob using the Arrhenius rate law and kinetic data obtained from previous laboratory-scale studies. The heat generated from the spontaneous heating is transported by convection and conduction, and oxygen and the oxidation products are transported by convection and diffusion. Unsteady state simulations were conducted with different ventilation conditions and gob permeability distributions. The ventilation parameters varied in the simulations are the pressure at the bottom of the bleeder shaft and regulator resistance in the second entry inby the longwall face.

Jan 1, 2009

By T. Mills, M. Evatz

Newmont’s Lone Tree Mine, located in northern Nevada, is an open pit gold operation supported by a standard truck and shovel mine production fleet (Caterpillar 785Bs and Hitachi EXs). Newmont continues to search for ways to decrease capital expenditure and lower operating cost, hence the implementation of the Ultra Light Body (ULW) concept. The fundamental idea associated with the ULWs is the increased payload potential. Economic justification comes from successful achievement of additional payload, within the truck’s rated GVW, without changing its loading and hauling characteristics. The increase in payload capacity allows equivalent tonnage movement using fewer trucks.

Jan 1, 2001

By Simon D. Strauss

This article is part of a presentation Strauss made Dec. 3, 1988 at the sixth annual American Mining Hall of Fame (AMHofF) banquet in Tucson, AZ. At the banquet, the Mining Club of the Southwest honored Strauss by naming him the 1988 recipient to the AMHofF. (Industry newswatch, page 6). Introduction In the last two decades, there have been two previous periods of sharply rising copper prices. One was in 1973-74; the other in 1979-80. In both cases, a short period of high copper prices was followed by steep and prolonged periods of low prices. In the language of the market analyst, the high prices were called spikes. Is it likely, then, that three or four years from now the present price of copper will show up as a spike in the charts? There are substantial differences between the current position and the markets of 1973-74 and 1979-80. In 1973-74, US copper prices were subject to government-imposed price ceilings of $0.60 per lb through early December, 1973. These were increased to $0.68 per lb through May, 1974. Meanwhile, mines outside the United States were free of restraint. Rising demand in London pushed the price above $1 per lb in the third quarter of 1973. In early April 1974, it reached a peak of $1.50 a lb. In May of that year, the US ceilings were removed and the domestic price began to rise. What were the causes of this price strength? While ceilings held the domestic price below the world market, domestic consumers acquired all the tonnage offered by US mines. Meanwhile, in the world market, buyers feared prolonged shortages. The Club of Rome had warned that world economic growth would be limited by impending depletion of mineral resources. There was al so concern about a copper cartel that might increase copper prices even more. In early 1974, at a special United Nations session, developing-country spokesmen warned the industrialized world to expect high commodity prices. Also adding to the concerns of copper buyers was the fear that when US wage contracts expired in mid-1974, protracted strikes might ensue. The combined effect of this atmosphere was that consumers accumulated large amounts of copper, far above their normal carry. By midsummer, the position changed radically. While some strikes did occur in the United States, they proved short-lived. The most significant development was a massive economic recession. The energy crisis was causing enormous dislocations in the world economy. Construction activities were sharply reduced and automobile sales plummeted. Public confidence was shaken. Copper sales fell precipitately as consumers decided to draw down their swollen inventories. The price came down too. In April 1974, the London price- as noted-was $1.50 per lb. By the end of the year, it was down to $0.57 per lb. In 1973-74, the copper price rise was fed by fears of shortages, cartels, and strikes. In 1979-80, the market rose on the strength of good demand plus political and military instability. The price rise was also fed by inflationary trends, exemplified by speculation in precious metals. Prior to this second spike in copper prices, the market had been depressed despite economic recovery. Despite reduced US output, copper production in the rest of the world was increasing. Though consumption was rising, surplus stocks reached unprecedented levels. At the end of 1977, the aggregate of stocks at the refineries and in the exchange warehouses was 1.5 Mt (1.67 million st). That was more than three months' shipments at then rates of consumption. In 1978, the statistical position improved. Shipments of refined copper that year were 8% greater than in 1977. The result was reduced visible stocks but -just as was to be the case in 1984-86 - the price remained depressed. In 1979, an even sharper drop in visible stocks occurred as shipments rose by another 4%. This time, though, the price responded. In December 1978, the price in current dollars had been less than $0.70 per lb. By the end of 1979, it was above $1 per lb. And in the first quarter of 1980, it averaged more than $1.20 per lb. Military and political developments were a factor. The hostage crisis in Iran was followed by the Soviet invasion of Afghanistan. To many, it appeared that war might result if the Soviets pushed on into Pakistan. At the same time, speculation drove gold and silver prices to incredible levels. As silver prices rose above $40 per oz), copper above $1 per lb did not seem unreasonable. Then, in March 1980, the precious metals price boom collapsed. Copper prices also retreated, though not as much. In February 1980, the copperprice averaged $1.32 per lb. By December, it had dropped to $0.85 per lb. In 1981 and 1982, the decline continued. The present copper situation Why is the current situation different from these two previous episodes of high prices? First of all, today's inventories are far lower than they were in either 1974 or 1980, when the price declines began. The stocks at refineries and in exchange warehouses are substantially less than they were then. More significantly, consumers today have very limited holdings compared with stocks they carried in 1974 and 1980. Even if faced with a downturn in their own business, copper consumers will not be able to stay out of the market. To the extent they have any business at all, they will have to buy copper. And on the supply side, there is also a significant difference. The year 1988 has been unusual. US production is up sharply, responding to higher prices. But production is little changed in the rest of the Free World. Indeed, several of the major producing countries have mined less copper this year than in 1987 despite the prices increases. Peru has had labor problems that have cut its output. Zambia and Zaire suffer from shortages of expatriate technicians, not to mention spare parts. They also suffer from the failure to maintain equipment or perform adequate development. In Chile, the two largest mines, Chuquicamata and El Teniente, have not met their production targets. Chuquicamata is struggling with high arsenic content in its ore. And, in late 1987, severe rockbursts hampered operations at El Teniente. In addition, depletion of some mines in Australia and South Africa has offset rising output at other properties. Indeed, when final mine output figures for 1988 become available, it may well be

Jan 1, 1989

By K. M. Mohamed, R. K. Zipf

The shear strength properties of generic cement foam material and cement foam/concrete interfaces were examined at three testing scales. In laboratory direct shear tests on specimens with average shearing area of 0.006 m2 (10 in.2), the cement foam material had average peak and residual shear strengths of 0.88 MPa (128 psi) and 0.39 MPa (56 psi), respectively. Depending on the concrete strength, the cement foam/concrete interfaces had peak and residual shear strengths ranging from 0.71 to 0.81 MPa (103 to 117 psi) and from 0.27 to 0.29 MPa (39 to 42 psi), respectively. In laboratory direct double shear tests on specimens with average shearing area of 0.084 m2 (130 in.2), the cement foam/concrete interfaces had average peak and residual shear strengths of 0.17 to 0.30 MPa (25 to 44 psi) and of 0.11 to 0.23 MPa (16 to 33 psi), respectively. In large shear tests of simulated cement foam seals with the Mine Roof Simulator (MRS) test frame, cement foam/concrete interfaces with shearing area of 1.486 m2 (2,304 in.2) had average shear strengths of about 0.08 and 0.16 MPa (11 and 23 psi) along the roof and floor interfaces, respectively. The average shear strength through the cement foam material was 0.38 MPa (55.3 psi). Finite element analysis of the large seal tests and the back analysis of the shear strength of full-scale cement foam seals conducted at the NIOSH Lake Lynn Laboratory confirmed shear strength of about 0.14 MPa (20 psi) along the seal/rock interfaces. The study concluded that the structural analysis of cement foam seals should be based on their residual shear strength determined from small laboratoryscale tests of the cement foam/concrete or rock interface and not be based on their peak strength.

Jan 1, 2014

By L. Gertsch, R. Gertsch

Mechanical mining is steadily gaining usage in the mining industry. A variety of machines currently finds employment: tunnel boring machines, roadheaders, continuous miners, surface miners, and augers. These machines have advantages compared to drill and blast mining methods, including increased safety, lower cost, uniform muck size, and accurately sized openings. A century of experience with mechanical methods has already paid dividends to the coal industry. Current trends guarantee eventual development of true general-purpose hardrock mechanical mining machines. Mechanical miners will become integrated mining systems and will determine the design of mines, when several significant challenges have been met.

Jan 1, 2001

By R. W. Fedors, S. T. Green, G. R. Adams, C. Manepally, L. B. Browning

This paper provides estimates of large-scale temperature gradients that can be used to support modeling of natural convection and cold-trap processes in thermally perturbed drifts. Temperature influences estimates of the quantity and chemistry of water contacting engineered components (e.g., drip shields and waste packages) in a potential high-level waste repository at Yucca Mountain, Nevada. Temperature gradients drive natural convection and cold-trap processes, which could affect the distribution, quantity, and chemistry of liquid-phase water contacting drip shields (waste packages).The confluence of high temperatures, liquid-phase water, and high chloride may lead to corrosion of drip shields and waste packages. An overview of the evolution of environmental conditions in thermally perturbed drifts is presented to provide a context for the estimates of temperature gradients. A mountain-scale conduction-only model is used to estimate temperature gradients and temperature differences for a drift located at the center of a potential repository. Thermohydrologic models and heat transfer algorithms are used to evaluate the reasonableness of the conduction-only results. Estimates of temperature using an in-drift heat transfer algorithm account for the possibility of drift degradation and formation of a rubble pile on the drip shield. Temperature differences between the center and ends of the drift are estimated to rapidly increase to 80 °C soon after repository closure. That temperature difference decreases over time to 15 °C after 10,000 years. Local temperature gradients are generally estimated to be less than 0.2°C/m, though the gradients can be much larger near changes in lithology and near the end of the drift. The estimates of temperature gradients do not account for intermediate- and small-scale variations, such as those influenced by differences in heat loads between waste packages, intra-layer variations in thermal properties of the surrounding fractured rock, or localized drift degradation.

Jan 1, 2004

By G. Bulut

The recovery of copper and cobalt from ancient copper slags from the Küre region of Turkey was investigated. A fayalitic-type of ancient copper slag containing 1.24% Cu, 0.53% Co and 53.16% Fe were subjected to an experimental study. Two different routes were followed to recover the metal values. The first route was roasting the slag with pyrite followed by leaching. The second route was flotation of the slags, roasting of the flotation tailings with pyrite and leaching. The second route was found to be suitable for the treatment of the copper slag studied. In the flotation step, a copper concentrate containing approximately 11% Cu was produced with a 77% recovery while 93% of the cobalt stayed in the tailings. In the roasting experiments, the effects of roasting time, pyrite: slag ratio and roasting temperature on the dissolution efficiencies of Cu and Co were investigated, and the optimum conditions were determined. In the tests, 87% of the cobalt dissolution was observed after one hour of roasting at 500°C with a pyrite: slag ratio of 3:1. The copper dissolution in the tests was 31%. Based on the results of this study, a process flowsheet is proposed for the evaluation of these slags.

Jan 1, 2007

By Luke Erickson

San Francisco Public Utilities Commission is planning to replace 5 miles of pipeline under San Francisco Bay. The tunnel will be constructed using an Earth Pressure Balance (EPB) TBM and will be the first TBM-driven tunnel under the Bay. The alignment passes under environmentally sensitive habitats, through interbedded layers of sands and clays, and through a buried bedrock ridge. This paper discusses the geotechnical characterization and anticipated tunneling conditions and presents the analysis of various construction methods that resulted in the selection of an EPB TBM. Considerations related to tunneling with an EPB TBM are described in detail, including ground conditioners, TBM cutterhead wear, muck control, and squeezing ground.

Jan 1, 2008

By Priscilla P. Nelson

Many concepts concerning equipment selection, performance prediction, and evaluation of support requirements for tunnel construction in soil or hard rock tunnels cannot be extrapolated directly for application in soft rock (compressive strength between 1.0 and 35.0 MPa). Case histories for small diameter (less than 3.5 m) tunnels in Austin, Texas, are analyzed to gain insight into particular problems encountered during tunnel excavation in weak sedimentary rock, and the performance of different excavation systems are compared.

Jan 1, 1987

By K. Heasley, A. Yassien, A. Khair, S. Peng

There are three major components of a fully grouted roof bolt which primarily determine its ability to develop and sustain load: the steel rebar, the resin annulus, and the rock/grout interface. The untensioned, fully grouted roof bolt is subjected to loading only when the surrounding rock deforms. Vertical rock deformation is generally a result of strata sagging and bedding plane separation, whereas horizontal deformation is typically a result of bedding plane sliding. These two types of deformation create different types of internal loads with-in the roof bolt, tensile stress for vertical rock deformations and shear stress for horizontal rock deformations. Also, as a result of the mutual load transfer between the rock and bolt, shear stress will be developed along the grout/rock interface. According to the exact bolt loading conditions, different failure modes may occur: bolt axial failure, bolt shear failure, and shear failure along the grout/rock interface. Understanding these possible failure modes and their root causes is the key to eliminating roof failures in underground mines employing fully grouted resin bolts. Using ABAQUS 5.8, a finite element model was developed to simulate the components of the fully grouted bolt and its interaction with the surrounding roof strata. Several models were conducted to investigate how load transfer occurs between the rock and the bolt under different geological and mining conditions. The effects of bed-ding plane location and properties, and strata sequence on bolt stability were studied. Also, the effects of hole roughness on bolt stability were discussed. Bolt axial failure was not observed within the range of the studied parameters; however, a combination of high overburden depth, a bedding plane located at 2 to 3 ft from the roofline or a low coefficient of friction along the bedding plane caused strata sliding and shears failure in the bolt. Also, in the case of a weak immediate roof, the shear stress at the grout/rock interface could exceed its ultimate capacity lead to slippage.

Jan 1, 2004

By G. E. S. Valadao, J. D. Miller, C. L. Lin

Filtration is an important solid liquid separation technology employed widely in the mineral processing industries. The effectiveness of the filtration operation can be influenced by numerous variables, related to the particulate phase, the slurry rheology and the equipment. The classical approach for analysis is based on Darcy's law. Knowledge of the cake poremicro structure and its correlation to macroscopic cake properties is required to model the filtration operation from a fundamental point of view. Since cake formation seems to occur randomly, a 3D Monte Carlo method was used to simulate cake formation. The configuration for simulation was a space with width of 500 m, length of 500 m and height of 4000 m. Size distributions of five different industrial products whose particle size distributions follow the Rosin Rammler distribution function were used. The particle shape was assumed to be spherical. The simulated cake structures were described in terms of volume porosity (volume of pore space per unit volume of cake) and surface porosity (area of pore space per unit area of a cross section). The results indicate: 1) it is possible to simulate 3D packing, which mimics cake structure, using the Monte Carlo method,2) segregation phenomena occurs during simulated cake formation, 3) the values of calculated porosity for simulated samples B, C, D, and E were lower than those determined for corresponding industrial products Br, Cr, Dr, and Er, and 4)some structures of simulated samples seem to correlate with laboratory leaf test data obtained for different products from plant operations.

Jan 1, 1999

Continued market pressure on the US coal industry was the overriding factor affecting developments in underground mining in 1986. An oversupply of coal in the spot market kept prices low throughout the year and caused a number of operations to close their doors. Operators stepped up their efforts to improve productivity at existing operations. They made technology advances and improved their relations with employees. A continuing market-related development during 1986 was the divesting of coal properties and operations by major oil companies, which were faced with economic pressures in both the oil and coal industries. Further increases in contract mining production resulted as some larger operators were unable to compete in a tough economic environment. Longwall mining is still seen by many as the technology that will provide the necessary productivity to remain cost-effective. But the number of active faces in the US declined in 1986, as reserves were depleted and economics forced some closures. At the first Longwall USA meeting in June, much attention was placed on improved technology, as electro-hydraulic controls for roof supports gained acceptance. Other recent developments include shearer initiation of roof supports, automatic horizon control for shearer drums, and collection and storage of machine data for predicting maintenance requirements. The government and academic communities continued their research on dust control at longwall faces. Jankowski, Kissel, and Daniel, (October 1986, Mining Engineering), gave an overview of progress in longwall dust control. And Mukherjee, Singh and Jayarman (November 1986, Mining Engineering), recommended design guidelines for improving water spray systems for dust control. Surface subsidence Increasing attention is being given to surface subsidence. This is primarily because of longwall mining and the Surface Mining Control and Reclamation Act. Improved methods of prediction of surface subsidence, especially computerized methods, are being continually developed. Mining engineering faculty at major universities such as Virginia are helping develop public policy and regulations concerning subsidence. As part of this effort, Unrug and Johnson identified major subsidence areas of Western Kentucky. Peng and Chen (February 1986, Mining Engineering), gave an overview of history and research of surface subsidence. And Elifrits and Aughenbaugh, (February 1986, Mining Engineering), discussed effects of moisture variations and overburden on subsidence. This research culminated in a Symposium on Surface Subsi¬dence at the SME 1986 Fall Meeting in St. Louis and the 2nd Workshop on Surface Subsidence at West Virginia University. Ground control in coal mining continued to be an item of major research interest. Some 30 papers were presented at the 5th International Conference on Ground Control in Mining at West Virginia University. And six sessions were related to coal mining at the 27th US Symposium on Rock Mechanics at the University of Alabama. At the 4th Annual Workshop, Generic Mineral Technology Center, Mine Systems Design and Ground Control emphasized efforts of the participating universities to improve ground control. Peng and Chiang summarized results of studying support capacity and roof behavior with longwall shield supports. And Unrug, Johnson, and Nandy analyzed the process of deterioration of shale roof in a case study of a room-and-pillar coal mine. The importance of geologic conditions in determining mining productivity is receiving increased attention in coal mine design in the US. Mullenex related, through case studies, the benefits to be derived through analyzing the depositional system of coalbeds as an integral part of mine design. Improved technology in this area was related by Lloyd, Semborski, and Stolarczyk. They discussed a case study of using radio imaging to indicate coal-seam discontinuities in advance of mining. Improved coal mining technology in general is being researched more heavily, to help improve US coal competitiveness. However, much of this research and development process has yet to be widely implemented. Equipment manufacturers are devoting more resources to development of continuous-haulage systems, mobile roof-supports, mine-monitoring systems, and predictive-maintenance systems using computers to extract machine data.

Jan 5, 1987

By T. McKeon, G. Luttrell

Spiral separators are commonly used to upgrade sand-sized particles in both the coal and mineral processing industries. Many plants utilize multiple stages of cleaning and/or scavenging spirals to improve recovery and/or final product grade. Field studies suggest, however, that the layout of industrial spiral circuits is often less than optimal. This oversight can usually be attributed to a failure by plant designers to consider fundamental process engineering rules that govern the layout of complex separation circuits. This article reviews some of these important rules as specifically applied to multistage spiral circuit design. Two industrial case studies, one involving the upgrading of heavy mineral sands and a second involving the cleaning of fine coal, are presented to illustrate the impact of good design protocols on spiral circuit performance.

Jan 1, 2007

By I. Gombköto, J. Bohm

"In Europe, and therefore in Hungary opening a new mine is harder and harder. Depletion of mines, unfavourable legal and economic changes, and growing public concerns are the main reasons. Social and economic interests require total utilization of mineral raw materials of the operating mines, and furthermore utilization of waste heaps of the former mines. There are 5-6000 waste heaps of the operating and the closed mines in Hungary. 2000 of these waste heaps have already been estimated, and researches show that total amount of waste heaps can be calculated to 1 billion tones. These researches left out of consideration waste heaps exploited and placed in deep lignite mining. In several projects and researches we analysed processing of waste heap and possibilities to use its components. A processing technology for utilizing waste heaps has been developed based on laboratory and pilot plant tests. Great amount of useful materials of quarrying waste heaps can be utilized with this technology. Tests were also done for processing waste heap of a former ferrous metals mining. The developed processing technology contributes to use these waste heaps as aggregate for cement industry, as dielectric and aggregate for construction. The essay presents in details main characteristics of waste heaps, technologies already used for processing waste heaps of quarrying and ferrous metals mining, mass balances and qualitative parameters of the end products."

Jan 1, 2011

By J. D. Potts

Installation of a horizontal air blocking shelf around the inside perimeter of the surface mining drill deck shroud is proposed to improve dust capture. Without the use of this shelf, a strong coanda effect airflow pattern results in dust leakage to the environment, especially at the shroud-to-ground interface. Bailing air exits the drill hole and travels along the drill steel to the underside of the table, where it fans out across the bottom of the drill table and continues down the sides of the shroud. This dust-laden bailing air then strikes the ground and fans out under gaps between the shroud and the ground. The proposed shelf prevents dust-laden air from striking the ground by redirecting it toward the center of the enclosure, where it can be captured. Laboratory tests demonstrated that the shelf reduced dust levels outside of the shroud by 81% under operating conditions consisting of a 1.9:1 collector to bailing airflow ratio, and a 5.1-cm (2-in) gap between the shroud and ground. The shelf was 15.2-cm (6-in) wide and located at a height equal to 2/3 the distance measured from the bottom of the shroud to the bottom of the drill table. The air blocking shelf was also capable of overcoming the adverse impact of vertical leakage along the shroud seams as long as this leakage was confined to an area below the horizontal plane defined by the shelf location.

Jan 1, 2009

By A. Martikainen

Field tests concerning a fog mesh method for fog removal are discussed. The first tests were performed at the Pyhäsalmi Mine, Finland. As this study gave promising results, further studies were completed at the Orivesi Mine. The results of these most recent field tests are presented and the two studies are compared. The Orivesi test set consisted of four materials. These included air filter fabric, fibrous filter fabric, a plastic greenhouse mesh, and an aluminium mosquito net. The variation of the Orivesi results was more noticeable than what was found previously. The best fog removal effect of all tests was achieved with the aluminium mosquito net, while the plastic green-house mesh performed worst. The humidity reduction by aluminium net was more profound than any of its precedents. More mesh materials will be tested in the near future.

Jan 1, 2007

By A. Adu-Acheampong

Stope instability at Ashanti Goldfields Company Ltd. (AGC) is a major concern. Using information from field mapping, major discontinuity sets were defined, Rock Quality Designation (RQD) was determined. The stability of wedges in the stope walls was assessed using the commercially available computer program UNWEDGE(Rock Science, 1992). Analytical results indicate that the presence of graphite infilling in joints contributes to instability, while steeply dipping joints control wedge slabbing and wedge toppling in the hanging wall. Stable stope widths and dimensions were determined to range from8.1 to 30 meters (m).

Jan 1, 2003

By S. M. Carpenter

In response to the FY2008 Consolidated Appropriations Act (H.R. 2764; Public Law 110?161), the United States Environmental Protection Agency (USEPA) issued the final Mandatory Reporting of Greenhouse Gases Rule (MRR). The rule, signed by the USEPA Administrator, Lisa Jackson, on September 22, 2009, requires reporting of greenhouse gas (GHG) emissions from large sources and suppliers in the United States, and is intended to collect accurate and timely emissions data to inform future policy decisions. The MRR will go into effect on January 1, 2010, and a report of the total emissions for calendar year 2010 will be due to the USEPA by March 31, 2011. Under the final MRR, suppliers of fossil fuels or industrial greenhouse gases, manufacturers of vehicles and engines, and certain facilities that emit 25,000 metric tons or more per year of GHG emissions are required to submit annual reports to the USEPA. The gases covered by the rule are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulfur hexafluoride (SF6), and other fluorinated gases as outlined in Table A-1 of Subpart A of the MRR, which is also provided in Appendix A of this report.

Jan 1, 2011

By G. Biles, K. Loughran, R. Anand

The Eskay Creek Mine, a high-grade gold and silver underground mine in northwestern British Columbia started operations in late 1994. For the first three years of operation, ore was crushed to minus 2 inch; blended to satisfy smelter terms and direct shipped to smelters in Japan and Canada. Before commencing the above operations, preliminary evaluations had indicated that an extremely complex metallurgical facility, requiring a large capital investment, would be required to recover the precious and other economic metals. Subsequently markets for raw ore were identified and underground mining and ore transportation operations, at a nominal production rate of 300 tonnes per day, were commenced. Exploration diamond drilling in 1995 and 1996 discovered additional lower grade mineralised zones, which are less economic or uneconomic as direct shipping ore. Test work demonstrated that these lower grade zones could be upgraded to marketable concentrates in a simple flotation mill. The mill was built in 1997 and has been in operation since late 1997. The mining rate now has increased to 400 tonnes per day including 250 tonnes per day of the direct shipping ore and 150tonnes per day of the mill ore. Prime Resources Group Inc. wholly owns the Eskay Creek Mine. Homestake Canada Inc. owns 50.6% of Prime’s shares and manages and operates the mine on Prime’s behalf. This paper discusses the mining and milling operations as well as ore shipment and smelter contracts' administration.

Jan 1, 1999