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By M. E. Grimes

Rio Algom Mines Ltd. owns eight uranium mines and mills in the Elliot Lake district of Ontario, seven of which were producing before 1960. At present only one mine is operating meeting current contract requirements. Under present economic conditions, it is not feasible to mine ore of less than 2.0 lbs./ton U308, although there are very large reserves below this grade. We are interested in preconcentration for three possible applications: to extend ore reserves by permitting use of lower grade ore, to reduce costs on processing of present grade ore, and to reduce capital investment in expanding production to meet future production goals.

Jan 1, 1973

By A. Yehia

Fluoride activation has been evaluated by Hallimond-tube flotation of collophanite in terms of fluoride concentration, conditioning time, pH, and temperature. The results reveal that efficient oleate flotation of collophanite can be achieved by fluoride activation. Fluoride adsorption by collophanite as a function of fluoride concentration, temperature, pH, and crystal structure suggests that, at low fluoride concentration, a fluoroapatite-type compound may form on the collophanite surface by chemisorption of fluoride ions at calcium sites; at high fluoride concentration, calcium fluoride ap¬pears to form at the collophanite surface invovling a surface-precipitation phenomenon. The formation of CaF2 on the surface of fluoride-treated collophanite is further substantiated by the FTIR spectroscopic measurements, which clearly shows a metathetic exchange with phosphate from the collophanite lattice during surface precipitation process.

Jan 1, 1986

By T. Kelly

The Cannon Mine is located in Chelan County, near Wenatchee, Washington, at the eastern foot of the Cascade Mountains. The mine is situated about two miles from the Columbia River, in the arid Columbia River Valley. Two hydroelectric dams provide electricity for the area, the Burlington Northern Railroad has a switch yard and loading facilities in Wenatchee. Approximately 25,000 people live in the area. The principal industry is fruit farming. Underground mining techniques are used to provide feed for a 2,000 tpd flotation concentrator at the site. The techniques are low- cost, high productivity methods which allow for a high extraction rate along with a high rate of recovery of the minable reserve.

Jan 1, 1986

By JIACHENG XIE, Juanli Li, Wenyong Du, Tao Cui, Mengyao Dong, Pengfei Huo

The operation of intelligent coal mining in complex geological environment is still unable to realize automation. In order to realize the autonomous cutting of fully mechanized mining equipment and improve coal production, a mining and transportation equipment dynamic advancement path planning method based on spatial kinematics coordinate deduction prediction and real-time correction prediction of coal-rock state identification of equipment cutting current index are proposed. Firstly, the spatial motion law of the mining and transportation equipment is analyzed, and the mathematical model of the spatial motion of the mining and transportation equipment is established. The relationship between the adjustment of the shearer rocker arm and the pose change of the scraper conveyor is determined, and the coordinate deduction model of the spatial advancement position of the equipment is determined, which provides a theoretical basis for the advancement path planning of the mining and transportation equipment. Then, on the basis of the mathematical model construction, combined with real geological data and equipment information, the three-dimensional dynamic planning of the advancement path of the mining and transportation equipment is carried out from the two dimensions of the horizontal advancement direction and the shearer walking direction. At the same time, the relationship between the cutting current index of shearer and the state recognition of coal-rock mass is analyzed, and the coal-rock mass state identification of cutting current and the adjustment of rocker arm model is constructed, and the real-time dynamic correction of three-dimensional path is carried out, so that the planned path can better adapt to the sudden change of real geological environment. Then, using the unity3d virtual reality technology, a simulation system for the horizontal advancement path planning of the virtual mining and transportation equipment is constructed, which simulates the real advancement operation process of the mining and transportation equipment and conducts advancement training. Finally, the dynamic advancement scheme update prediction based on the existing actual cutting but ahead of the actual cutting is realized in the virtual scene, and the optimal scheme is transmitted into the existing prediction cutting system to guide the actual physical equipment mining. The path planning method can control the coordinate position error of the advancing cutting path within 15 mm, which provides ideas for the research on the advancing path planning of fully mechanized equipment.

Nov 22, 2022

By F. Dakubo

"Solvent extraction of copper pregnant solution (PLS) obtained from ammonium peroxodisulfate assisted leach was modeled using response surface methodology. Mixing speed, pH, reagent concentration and organic to aqueous (O/A) ratio were selected for testing. A pitched blade mixer was used in the experiment. Mixer speed contributed significantly to copper extraction significant, while pH had minimal effect on copper extraction. The response model developed has an R2 = 0.97 and Adeq precision of 28.3. A parallel kinetic comparing study using a straight blade Rushton turbine in a turbulent regime of mixing showed no difference (p-value =0.308) between peroxodisulfate assisted leach PLS and conventional ferric/sulfuric acid leach PLS- the power draw data support this conclusion. INTRODUCTION High arsenic chalcopyrite concentrates are a problem to the smelters all over the world due to high arsenic gas emissions during smelting. Therefore leaching is often the alternative for extracting the copper in these concentrates if dilution with low arsenic concentrate is not possible. High-pressure autoclave leaching is used. Alternatively, the use of stronger oxidants such as peroxodisulfate has been proposed [16, 18]. There is a concern brought up by the hydrometallurgy community about the faith of the organic extracting reagent coming into contact with stronger oxidant residue in the pregnant leach solution (PLS) and hence the efficiency of such extraction process. This work, therefore, looks to answer such concerns. PLS generated from leaching of chalcopyrite concentrate with the peroxodisulfate ion was used in this solvent extraction experiment. As a liquid-liquid extraction, solvent extraction involves contacting the aqueous PLS with organic extractant via mixing. Mixing is known to increase the interfacial area for mass transfer by decreasing the diffusion path length (Jussi et al.1997). EXPERIMENT Instruments and Reagents Reagent grade Acorga 5910 reagent was used in the experiment was supplied by Cytec (Current name Solvay), Ammonium peroxodisulfate and sulfuric acid were reagent grade obtained from Amazon. Apparatus The solvent extraction tests were carried in a 2000 ml plastic cylindrical reactor equipped with four 0.5” baffles. In the hypothesis test, the reactor was a 4000 ml cylindrical reactor with four 1” thick baffles arranged evening in the reactor. Comparison between peroxodisulfate and ferric leach PLS via hypothesis test"

Jan 1, 2018

By T. K. Bundtzen, C. B. Green

Exploration expenditures in Alaska last year amounted to $8.9 million. This was comparable to 1985's $9.1 million. Development expenditures dropped 29%, $24.3 million in 1986 vs. $34.1 million in 1985. The exploration industry is restructuring and stabilizing after the loss of major mineral firms during the last few years. These included Anaconda Minerals, Asarco, Hecla Mining, Enserch Exploration, Phillips Minerals Division, Exxon Minerals, Noranda Inc., General Crude, Mohawk Oil & Gas, Inspiration Development, Teton Exploration, and St. Joe Minerals Division. Some of these companies were mineral subsidiaries of oil companies and were either dissolved or redirected to programs outside of Alaska. However, recent entry exploration firms include Echo Bay Mines Ltd., Long Lac Minerals, and Exvenco. They are busy evaluating prospects and mineral developments in the southeastern panhandle. In the 1970s, about $254 million was spent on Alaska mineral exploration. Of this, about 5% ($12 million) was for nonmetallics and coal, about 26% was directed at precious metals ($66 million) mainly gold, and 69% ($175.3 million) for the base metals zinc, copper, molybdenum, tin, tungsten, and nickel. Since the early 1980s, trends have reversed. Of the nearly $196.3 million spent from 1981-1986, 48% has been for precious metals ($94.3 million) and 40% on nonmetallics and coal. In the last two years, nearly 70% of the Alaskan exploration dollar has been spent in search of precious metals. Three gold skarns were explored during the year - the Nixon Fork project in western Alaska (Battle Mountain Mining Co.), the Nebesna and Rambler lodes of the northern Wrangell Mountains (Nebesna Mining Partners), and the Zackley project near Paxson in southcentral Alaska (Nerco Minerals). Nearly 7.6 km (25,000 ft) of diamond and rotary drilling were conducted on these three properties. Aspen Exploration announced that significant gold mineralization was found under the Nome coastal plain in western Alaska. Meridian Minerals joint ventured with Resource Associates of Alaska, exploring precious metal

Jan 5, 1987

By T. P. Weldum, W. Conger

"The objective of the study conducted by the authors is to determine what media size(s) addition will maximize any given plant ball mill’s grinding efficiency (Fig. 1). The functional performance parameters “mill grinding rate through the size of interest,” and “cumulative mill grinding rates” from both plant and smallscale tests are applied to this task. A plant media sizing methodology, and industrial case studies, are provided.BackgroundA previous article (“Ball mill classification system optimization through functional performance modeling,” Nov. 17, McIvor et al., 2017, Mining Engineering) described circuit classification system efficiency (CSE), equal to the percentage of coarse (plus circuit P80 target size) material in the ball mill. It can be measured and then increased through pump and cyclone adjustments. By so transferring the application of ball mill power from fine (minus P80 product size) to coarse material, circuit efficiency is increased and overgrinding is decreased.The other factor that determines overall circuit efficiency is how well the power that is applied to the coarse material grinds it. This is affected by design and operating variables like the media sizing and mill percent solids. From circuit functional performance (McIvor et al., 1990):Circuit production rate of new fine material (t/h) = Power applied to coarse material (kW) x Mill grinding rate of coarse material (t/kWh) (1)The power applied to coarse material is the total mill power multiplied by the CSE. Therefore:Circuit production rate of new fine material (t/h) = Total mill power (kW) x CSE (%) x Mill grinding rate of coarse material (t/kWh) (2) Production rate, mill power and CSE can be measured during a plant circuit survey. The mill grinding rate of coarse material is then calculated. At the circuit target P80 size, this is the mill grinding rate (of coarse material) through the size of interest. The objective is to maximize this rate. The mill grinding efficiency can also be calculated by taking the ratio of the mill grinding rate over the material’s grindability as measured in the lab. Mill percent solids optimization has thusly been achieved (McIvor et al., 2000). For media sizing, maximizing the mill grinding rate on a given ore is equivalent to maximizing the mill grinding efficiency. Ores of different grindability will be part of the discussion."

Jan 11, 2018

By Gabriel Böde Jimenez Leon, Michael Karmis, Christopher Newman, Zach Agioutantis

"When utilizing high recovery underground mining methods, such as longwall or high-extraction room-and-pillar mining, the movement and deformation of the overburden propagate toward the surface and may affect the integrity of overlying surface streams (Peng et al, 1996). Published studies cite three major mechanisms of subsidence as most likely to impact streams: displacement, slope and strain. While subsidence-induced vertical displacement cause little structural damage to the stream bed, it may create adverse drainage and stream flow issues as the subsidence trough allows for ponding (Dawkins, 2003). Subsidenceinduced changes to the slope, or tilt, of a stream may have adverse effects on water flow. As the stream enters the subsidence trough, the gradient increases providing potential erosion control problems. When exiting the subsidence trough, a reduction of the gradient may inhibit stream flow, causing localized ponding (Peng, 2008). While vertical displacement and tilt both may have detrimental effects to surface streams, the resulting strains have been documented as being the most damaging to surface streams and structures causing distortion, fractures, or failure (Singh, 1992). When stream beds are subjected to high tensile strain, tensile cracks may form at the surface level allowing for the direct loss of stream flow through fissures. When stream beds are located in areas of high compressive strain, rock layers forming the stream bed can fail as the stream bed ruptures, upward, blocking stream flow or having the stream diverted into the fracture zone at the base (Iannacchione, et. al., 2010).Recent investigations on the effects of underground mining on surface bodies of water suggest that to determine the degree of stream impact one must also consider the geologic structure and thicknesses, surface topography, watershed drainage areas, width of river bed and rate of mining. Due to the complex nature and number of parameters affecting surface streams, subsidence modeling tools and software packages should be implemented throughout all stages of subsidence planning, prediction and control. The Surface Deformation Prediction System (SDPS) utilizes the influence function for the calculation of final subsidence deformations with respect to the angle of influence, supercritical subsidence factor as a function of the percent hard rock, edge effect offset distance, and surface topography. Developed more than 25 years ago, SDPS has been continually updated with new analysis and prediction features, providing a reliable and versatile program for subsidence management methodologies. Most recently, the program has been updated to evaluate the effect of varying surface topography in the prediction of horizontal displacements, referred to as ground strain, allowing for the accurate three-dimensional representation of surface deformations in mountainous terrain (Agioutantis and Karmis, 2014). Ground strain has become one of the predominant deformation indices used in the evaluation of potential damage to surface structures (Karmis et al., 1995). Ongoing work with SDPS software seeks to investigate the calculation of ground strain in SDPS and its ability to accurately and realistically predict damage to surface streams due to underground mining operations."

Jan 1, 2015

By Syd Peng, W. B. Guo, F. Du, L. Yang, J. Yw. Cheng

The annual ICGCM China was initiated in 2014. Up to 2023, ICGCM China has been held 9 times. In the 9 conferences during the past 10 years, about 559 papers in 17 topical areas were presented and attendance ranged from 200+ to 400+ each conference. The 42nd ICGCM China was held in Xiangtan, Hunan, China, 10/20–10/22/2023. There were 86 papers presented in 26 topical areas. In addition, an MS and PhD Research Forum was held concurrently with 36 papers presented by MS and PhD candidates in mining engineering from 8 schools. The conference plays an important role in cultivating advanced degree student talents. In this paper, all 559 papers reviewed previously were summarized. In addition, the 42nd ICGCM China is used to illustrate the current and future development trends of coal mine ground control in China. It summarizes the 122 papers (including 36 MS and PhD forum papers) grouping into, and in terms of, 26 topical areas. In addition, its unique and innovative subject areas, short summary of developments as well as conference strengths and shortcomings will also be presented.

Jun 25, 2024

By C. D. Ashley, X. P. Garzon-Villalba, R. M. Lopez, T. E. Bernard

Federal standards for refuge alternatives (RAs) mandate that they not exceed a Steadman apparent temperature (AT) of 95 °F (35 °C) at an assumed metabolic rate of 325 W, a limit that appears to be arbitrary. Occupants in an RA spend most of their time at rest (a metabolic rate less than 325 W), and thermal equilibrium can likely be maintained at an AT > 35 °C. The purpose of this study was to examine the upper limit of sustainable heat stress during 4- and 8-h exposures at rest. Five men underwent five 4-h trials (phase 1: AT range 39 to 49 °C, 90% rh) and five 8-h trials (phase 2: AT range 46 to 56 °C, 90% rh) in a semi-recumbent position. Descriptive statistics for gastrointestinal temperature (Tgi), heart rate (HR), systolic and diastolic blood pressure (SBP and DBP), sweat rate, fluid intake, urine color, urine specific gravity (USG), and changes in body mass are reported. Mean Tgi for all trials ranged from 36.9 to 37.3 °C, and mean HR for all trials ranged from 61 to 75 bpm. To determine the effects of increased heat exposure, differences in heat strain between 4- and 8-h trials were examined via repeated measures analysis of variance (ANOVA). As AT increased, there were no significant changes in ΔTgi and ΔHR from 1 to 4 h in the 4-h and 8-h trials. During the 8-h trials, as AT increased, there was a difference in ΔTgi between 4 and 8 h. In conclusion, there was support for sustainable exposures resulting in no significant increase in physiological strain at an AT greater than 35 °C AT, with a sustainable limit (no increases in Tgi due to increases in AT) below 46 °C AT. Although the participants were not representative of coal miners, the results provide support for sustainable exposures greater than 35 °C AT at an average metabolic rate of 155 W.

By C. D. Ashley, X. P. Garzon-Villalba, R. M. Lopez, T. E. Bernard

Federal standards for refuge alternatives (RAs) mandate that they not exceed a Steadman apparent temperature (AT) of 95 °F (35 °C) at an assumed metabolic rate of 325 W, a limit that appears to be arbitrary. Occupants in an RA spend most of their time at rest (a metabolic rate less than 325 W), and thermal equilibrium can likely be maintained at an AT > 35 °C. The purpose of this study was to examine the upper limit of sustainable heat stress during 4- and 8-h exposures at rest. Five men underwent five 4-h trials (phase 1: AT range 39 to 49 °C, 90% rh) and five 8-h trials (phase 2: AT range 46 to 56 °C, 90% rh) in a semi-recumbent position. Descriptive statistics for gastrointestinal temperature (Tgi), heart rate (HR), systolic and diastolic blood pressure (SBP and DBP), sweat rate, fluid intake, urine color, urine specific gravity (USG), and changes in body mass are reported. Mean Tgi for all trials ranged from 36.9 to 37.3 °C, and mean HR for all trials ranged from 61 to 75 bpm. To determine the effects of increased heat exposure, differences in heat strain between 4- and 8-h trials were examined via repeated measures analysis of variance (ANOVA). As AT increased, there were no significant changes in ΔTgi and ΔHR from 1 to 4 h in the 4-h and 8-h trials. During the 8-h trials, as AT increased, there was a difference in ΔTgi between 4 and 8 h. In conclusion, there was support for sustainable exposures resulting in no significant increase in physiological strain at an AT greater than 35 °C AT, with a sustainable limit (no increases in Tgi due to increases in AT) below 46 °C AT. Although the participants were not representative of coal miners, the results provide support for sustainable exposures greater than 35 °C AT at an average metabolic rate of 155 W.

By Y. Luo

Based on the concept of slope stability analysis, a formula for determining an important parameter required in the mathematical model for the prediction of mining subsidence in hilly terrain has been proposed. The slope geometry and soil physical and mechanical properties of the surface natural slope can all be considered in the formula. Incorporation of this new formula into an existing mathematical model provides an integrated approach in studying ground movement in hilly regions.

Jan 1, 1998

By J. A. Marts

Reservoir properties including porosity and permeability distributions in longwall coal mine gobs have direct application to modeling the flow patterns and gas distributions in the gobs. Proper assessment of these distributions is required to assess gob gas hazards such as spontaneous combustion and explosive methane mixtures and to optimize gob gas venthole operation and nitrogen inertization. Determining the reservoir properties is difficult given that the gob is inaccessible and direct measurements cannot be easily taken. Several techniques had been used by previous researchers and will be discussed. This paper will present the methodology used to model the gob compaction by simulating the sequential extraction of coal. Two Western US coal mines were used for case studies. By determining volumetric strain, the porosity and permeability distributions in the gob can be calculated. The geo-mechanical model predicts an axisymmetric volumetric strain distribution with a steeper slope near the start-up room and a shallower slope near the active face.

By R. A. Hevia

Florida Power and Light is the fifth largest investor-owned electric utility in the country. It has a service territory that covers 35 counties, or 28,000 square miles, 2.5 million customers, and serves 5.6 million people. The total installed capacity is 13,470 MW, generated by four nuclear units, 36 oil and/or gas fired units, and 48 gas turbine units. Traditionally, FPL has been an oil-based utility. In 1979, this dependency on oil became obvious when 42 million barrels of oil were burned during the year. At that time, it was also projected that, based on the current estimates of customer growth and available generation capacity through 1990, FPL's residual fuel oil consumption would increase from the 1979 level of 42 million barrels (6.7 million m3) per year to approximately 55 million barrels (8.7 million m3) per year by the mid-1990's. Concern over this was further aggravated by the fact that it was difficult to estimate both the price and quantity of fuel oil that would be available over the next decade since changes in the world market, decisions by oil producers and refiners, and international political developments would all affect the availability of oil. Also, at that time, the price of residual fuel oil had increased drastically, and there was no reason to think that these prices would soon stabilize. Thus, oil back-out became a primary objective of FPL and since then, FPL has been actively investigating ways to decrease fuel oil consumption.

Jan 1, 1985

By H. A. von Schonfeldt, H. Douglas Dahl

INTRODUCTION During the past decade, significant pro¬gress has been made in applying rock mechanics principles to mine design problems by a great number of researchers. Some of these new techniques have found their way into the engineering and planning offices of the operating mine. In spite of these advances, however, the application of rock mechanics in the day-to-day mine planning and design of our domestic coal mines is rela¬tively rare. There are a number of reasons responsi¬ble for this relatively slow progress, not the least of which is the question of how to measure the success or cost effectiveness of a sizable rock mechanics effort in an opera¬ting mine. Firstly, the properties of geologic materials generally vary over a wide range and it is, therefore, difficult to assess whether an improvement in the mining conditions is due to a design change or due to a change in the geologic conditions. A second reason for the slow acceptance of rock mechanics in engineering thinking is the fact that some of the concepts are quite difficult and that physical evidence of their validity to mine design is still rare. Thirdly, com¬munication between research, engineering and applications oriented people appears to function only intermittently. In our view, however, the most important impediment lies in the "state-of-the-art." Exactly how much can rock mechanics help the mine operator? The best that rock mechanics can do at present is determine whether one approach is better than another when weighed against some design objective (stress, strain, deformation). We cannot determine the abso¬lute best ground control design -- only what is better. If ground control is lost, the statement that "it's the best one we looked at" means very little to the harried operator. While the "state-of-the art" has advanced a great deal, it has certainly not been reduced to an engineering matter in that design hand¬books are available -- they are not. The success of a rock mechanics program, there¬fore, can be determined only over a long period of time of continuous effort.

Jan 1, 1977

"A commercially available through-the-earth (TTE) communications system was evaluated at an active underground longwall mine in West Virginia. This TTE system uses electricfield (E-field) sensing to send text-based communications through two separate antenna arrays connected in parallel. Each antenna array is composed of interconnected, grounded metallic rods or other such structures. Two-way communication between subsurface locations was investigated in this study using various antenna configurations. This field study was conducted as a part of a larger multisite evaluation of available TTE systems in an effort to determine their operational sensitivities. IntroductionWireless, through-the-earth (TTE) communication technology is designed to achieve point-to-point communication through solid strata using very low frequency (VLF) and ultra-low frequency (ULF) electromagnetic waves. Using this approach, communications are established without the need for intermediary communications infrastructure. As a result, TTE systems have the potential to provide reliable, robust communications between surface and underground personnel. Exploration into the use of TTE technology for this purpose dates back to the 1920s (Jakosky and Zellers, 1924; Pittman, Church and McLendon, 1985), but U.S. permissibility requirements slowed the development of TTE equipment for widespread implementation (Durkin 1980; Pittman, Church and McLendon, 1985). One of the primary challenges in producing wireless TTE communications is the counteraction of signal attenuation when propagating through solid strata (Barkand, Damiano and Shumaker, 2006; Wadley, 1949). The long wavelengths of TTE transmissions make them well-suited for reducing the rate of attenuation. However, even when operating within the VLF to ULF range, the performance of TTE systems is still affected by geologic and anthropogenic factors (Geyer, 1973; Geyer and Keller, 1976; Geyer, Keller and Ohya, 1974; Jakosky and Zellers, 1924; Large, Ball and Farstad, 1973). Although commercially developed TTE systems have demonstrated the ability to communicate in a variety of conditions, their range and performance have been highly varied (Barkand, Damiano and Shumaker, 2006; Geyer and Keller, 1976; Geyer, Keller and Ohya, 1974; Ilsley, Freeman and Zellers, 1928; Jakosky and Zellers, 1924; Yenchek et al., 2012)."

Sep 1, 2016

By N. Arbiter

The theoretical analysis of tumbling mill energetics and performance has largely neglected mill dimensionality, and, in particular, the importance of the length/diameter ratio. This is in spite of the fact that practice varies substantially in this area: geographically, for semi-autogenous and autogenous mills, as between North America and South Africa/Scandinavia; historically, for overflow ball mills, for which the L/D ratio has increased significantly from the earliest small mills to/the largest mills currently. The present study is concerned primarily with the influence of the L/D ratio on the design and operation of overflow ball mills; on the occurrence of the overload phenomenon; and on the limits, if any, it may impose on mill capacities because of critical pulp axial velocity limits. It will be shown that the shape face or is of major importance in this area; and that its adjustment to the extent that this is practical should remove the diameter limitations previously postulated for this mill type.

Jan 1, 1990

The paper describes a practical methodology based on numerical modelling for the prediction of progressive failure of underground mine stopes with cable bolt support. A case study of the 40-761 stope at Kidd Creek Mine, Timmins, Ontario is presented. The stope was mined by blasthole open stoping in 1986 as a lead stope within a mining block between 36-1 and 38-2 levels. Initially designed to peak at 38-2 level, the stope back caved upwards approximately 40m towards 36-1 level. Cable bolts were installed above the stope from 36-1 level after caving had begun. The stope eventually stopped to cave when the falling rock mass encountered a sufficiently high cable density. The paper provides details of the geomechanical data and modelling results of the case study. Numerical modelling is carried out using a finite element package known as e-z tools which has, among other things, a special cable/rockbolt simulation capability.

Jan 1, 1994

By R. C. Milici

The primary factors that determine the marketability of coal from various supply centers in the U.S. are coal quality and supply; i.e. low sulfur, moderate- to high- Btu coals have large market areas when compared to less expensive but poorer quality coals. Price is the major factor in the competitive marketing of similar coal products. Good quality, (moderate- to high- Btu, low sulfur) coals from the Powder River and central Appalachian basins are marketed over large areas of the country, and central Appalachian coal is widely distributed in foreign markets, primarily as coking coal. In contrast, poorer quality bituminous coal (low calorific value and/or high sulfur) from the Illinois Basin, northern Appalachian Basin, and lignite from the Gulf Coast is marketed in or near the States in which it was mined even though the price at the mines may be lower than mine prices for central Appalachian coal. Widespread distribution of sub-bituminous Powder River Basin coal is enhanced by its exceptionally low mining costs, which offsets transportation costs to distant markets.

Jan 1, 2001

By A. E. Jack Swanson, Brian P. Micke

INTRODUCTION Nevada Goldfields began underground mining development at the Kingston Project in September, 1986, followed by mill start-up in March, 1987. The first gold pour in April followed three years of preparatory work in establishing a North American operational base for the production of precious metals by Golconda Minerals N.L., an Australian mining firm. GENERAL CORPORATE BACKGROUND The Golconda Group of companies was established in early 1983 in Australia. It began operations by successfully retreating tailings at several old gold mining sites throughout Australia. With the limited reserves available for tailings retreatment, Golconda began to look toward the future by conducting a gold exploration program in Australia. However, the continued high price of gold in Australia had limited the possibilities of acquiring good properties at a reasonable cost and consideration was given to looking outside Australia in addition to Golconda's domestic exploration activities. North America was favored because of the proven potential for substantial gold deposits, the established infrastructure which would allow for rapid and cost-effective development of new projects and the advantages of similar political and economic climates. In mid-1984, Golconda established an office in California and began an extensive study of over 100 prospects throughout the United States. Two prospects were identified as a result of this study whch showed merit; one was located at Empire, Colorado and the other at Aurora, Nevada. Negotiations were then successfully undertaken to acquire these two properties. Golconda's U.S. offices were moved to Reno, Nevada in early 1985 to facilitate management of its projects. To operate and manage these projects, a small Canadian company listed on the Vancouver Stock Exchange, Cannon Minerals, was acquired by Golconda and renamed Nevada Goldfields Corporation. The current structure of the company is shown below in Figure 1. A private placement of 2,575,000 shares of common stock at US54.00 per share was arranged by Jacksons Limited of Australia in association with W.I. Carr (U.K.) Limited of London. This placement resulted in US510.3 million being available in May, 1986 for the acquisition and initial development of the Aurora and Empire projects. While the financing was underway, project planning commenced on both the Aurora and Empire projects. The Aurora project was selected as the one to be initially developed because of its relatively advanced stage of development. The

Jan 1, 1987