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By Alain Langlais, Caroline Boudrias Chapleau, Claude Bazin, Ahmed Bouajila

"Slurry «viscosity» has been recognised for several decades as a variable that significantly influences the operation of grinding mills. This paper describes an instrument that can be used in a laboratory or a plant to measure and monitor the flow properties of mineral slurries. Laboratory results obtained for two different ore samples are consistent with results obtained during a full scale trial. The results provide a basis for analysing the effect of the solids concentration and particle size distribution on the slurry flow properties. Grinding tests were also conducted in an attempt to link the grinding efficiency to the rheological properties of mineral slurries.INTRODUCTIONThe flow properties, or incorrectly called «viscosity», of a slurry influence the operation of mineral processing devices. Work has been conducted for instance to assess the effect of this variable on the operation of hydrocyclones (Kawatra et al. 1996; Klimpel, 1982a) and dense media separators for coal (Napier-Munn, 1996). However, most of the research effort has been oriented toward the grinding processes which is still the most energy demanding operation for ore dressing (Fuerstenau et al., 1995).Results of investigations of the influence of slurry flow properties upon grinding performances are presented regularly in the literature since 1950. In the 70's, most of the research work was conducted with the aim of using slurry flow properties for the control of grinding mill and to analyze the effect of that variable upon the population balance model breakage and rate functions (Austin et al., 1984; Hemmings et Boyes, 1977). In the 80's, most of the litterature dealing with slurry rheology was devoted to the use of viscosity modifiers to adjust the slurry flow properties, allowing an increase of grinding mill throughputs (Klimpel, 1982b; Fuerstenau et al., 1985). Although laboratory and pilot plant results show the benefits of adding these modifiers to the slurry, few plants have published results concerning the advantages of such addition (Fuerstenau et al., 1985). It is felt that the use of these modifiers introduce operating difficulties with the concentration circuits, especially flotation (Kawatra et Eisele, 1988)."

Jan 1, 2003

By Patrick F. R. Murphy

The mechanization of platinum group metal (PGM) underground reef mining in South Africa has posed a challenge to mining engineers for several decades. This is primarily due to the shallow dip angles and narrow thickness (<1.1m) of the tabular orebodies mined, and the issues faced in developing reliable drilling, bolting and loading machines suitable for such hard-rock mining applications. Presently, mining is typically conducted using hand drills and scraper shovels. These methods, however, are intensive in terms of manual labor, and limited in terms of productivity, and improved methods are desired. This paper will review the technical features of a 4 tonne, low-profile, LHD for narrow-reef PGM mining, developed by EJC Loaders Division.

May 1, 2003

A rough simulated borehole has been developed for the installation and dynamic testing of rock bolts a the WASM Dynamic Test Facility. The rough simulated borehole is used for rock bolts that are sensitive to equipment installation technique or borehole geometry (particularly friction rock stabilisers and resin encapsulated bolts). An extensive axial test program has quantified a difference between the static and dynamic capacity (kN/m of embedment) for friction rock stabilisers once sliding starts. The 47mm split tube bolt has a 50% reduction in embedment capacity (but with significant variation) dissipating 2.7kJ/100mm of sliding per meter of embedment, and the Omega (inflatable) bolt had a 70% reduction in embedment capacity dissipating 6.2kJ/100mm of sliding per meter of embedment. The Omega bolt dynamic capacity remainder at least equivalent to the split tube bolt static capacity.

May 1, 2009

By K. E. Barnes

"The IsaMill was developed for fine-grained ores that required at least double the grinding efficiency of ball or tower milling to be economic. This was achieved, but in practice, the benefits of using inert media (eg sand, slag, ore, ceramic) have proven to be at least as important as the higher grinding efficiency. Flotation selectivity and rate was improved for all particles, particularly fines. This allowed a dramatic simplification of the Mount Isa lead zinc flotation circuit – adding 6 MW of ultrafine grinding power reduced reagent addition and flotation volume and increased plant energy efficiency. This was quite unexpected.This paper examines four orebodies that were enabled by inert grinding – McArthur River, George Fisher and Black Star Open Cut Mines (complex fine-grained lead zinc orebodies in Australia), and the Western Limb Tailings Retreatment plant (a PGM operation in South Africa). In a unique case history, the operating performance of the Mt Isa lead zinc concentrator is explained by size-by-size mineralogical data collected over 25 years, systematically explaining the impact of declining ore quality, and the effects of additional conventional grinding, inert grinding, and circuit and reagent redesign.The mineralogical case histories are so compelling that it is argued that the advantages of inert grinding should not be confined to difficult, fine-grained orebodies. The availability of largescale efficient inert grinding mills could have profound impact on circuit design for many orebodies.INTRODUCTIONThe IsaMill was developed by MIM (now Xstrata) to enable the development of the McArthur River Orebody in the Northern Territory of Australia. This ultra-fine grained ore needed a grind size of 80% passing 7 microns to produce a saleable concentrate. Such a fine grind was not economic with conventional ball or tower milling. Below about 25 microns the low energy efficiency and high media consumption of these mills is prohibitive. Critically, the high steel consumption and associated change in pulp and surface chemistry also seriously affects flotation metallurgy."

Jan 1, 2006

By Ramón Alanís, Filiberto Orrante, Andrea Festa, Baldomero Gutiérrez, Fernando Cornejo

"SGS implemented two rules-based fuzzy logic expert applications on two grinding circuits operated by Peñoles Group in Mexico. Both expert systems are based on control strategies that push against process constraints to improve throughput. Based on proven methodologies, the projects also required some new approaches that led to permanent changes to the mill control strategy.This paper provides descriptions of the implementation, operation and performance of both expert systems. It also reviews how improved production rates were achieved through the use of a common set of expert technology tools. An overview of the resulting control strategies implemented on the two circuits is presented. The paper also discusses the identification of the process constraints within each circuit and how these constraints are used within the expert systems.INTRODUCTIONMexico-based mining company Peñoles Group and the Advanced Systems group at SGS, formally known as MinnovEX Technologies Inc., collaborated on the implementation of two expert systems in two grinding plants, both located in Northern Mexico.The primary objective of the expert systems was to increase throughput whilst still maintaining the cyclone overflow product size within an acceptable range. The secondary objective was to achieve a high level of utilisation of the expert technology.In order to achieve these objectives, SGS proposed a proven methodology which leveraged the existing operating and technical expertise at site through the client’s involvement in the design and implementation stages. The in-house operating and technical expertise of SGS was also brought to the project and implemented with the client’s approval at all stages. At both sites the final acceptance was defined upon meeting both process and utilization parameters.The development and deployment of rules-based fuzzy logic applications has matured as a technology and consequently, clear definition of process states and their place in the logic structure to control a given circuit are now transferable. The key to the robustness of the control logic depends on selection and tuning rules for maintaining stability and optimizing a given circuit. Application integrators need to have a standardized approach for timely integration and deployment; a critical component to avoid the common critiques that expert applications are idiosyncratic and difficult to maintain."

Jan 1, 2009

By R. J. McLeod

"CONTROL STRATEGYThe Lake Dufault Division of Falconbridge Copper Limited has been concentrating a complex copper zinc ore since late 1964. An ARL X-ray on stream analyzer was installed in 1966 for process control. A Digital Equip-ment Corporation PDP8 was added in 1968 for more complete control. To improve the system the computer was exchanged for a Moded PDP-81 in 1971.The new computer is time sharing with 8K core memory and 32K disc storage. A new interface was installed to accommodate 14 X-ray streams and additional analog signals for process control. The system gave us additional capacity and flexibility to make changes in operating programs and control strategy while on line. As the computer is used for process control a modified focal language was chosen as the operating language for ease of operation. This language is more suitable for process control than for statistical work.The main components of the control system are(a) Computer(b) Interface(c) Production Control X-ray Quantometer(d) Teletype terminals(e)Reagent feeders(f) Sample SystemThe operation of the system consists in the computer selecting the various streams to be analyzed by a PCXQ Quantometer. When the flowing sample is presented to the X-ray the intensities of the various elements are read by the computer from analog to digital converter, the assays are then computed. From the tonnage and assays the computer is programmed to determine the amount of reagent added to various parts of the circuit. The computer drives the feeders via the interface for the required amount of reagent. After following a certain sequence the computer prints out the performance and control data on an ASR35 Teletype. The data is printed out approximately every seven minutes. Any des¬ired changes in the program or strategy can be made during operation via an ASR33 Teletype connected to the computer."

Jan 1, 1973

By T. Belem

The main objective of this study is to better understand the effect of underground CPB placement conditions on its microstructural, hydro-mechanical and geochemical properties. To reach this objective, three PVC columns, each 3 m high, were built, and were filled with CPB material. The columns allow simulating undrained (UD), half-drained (HD) and fully-drained (FD) conditions along with the measurement of resulting self-weight consolidation settlement of the CPB. Bleed and drainage waters were also collected from each column for geochemical analyses (pH, Eh, EC, SO42- content). After 90-days of curing time, a total of sixty CPB samples were cored from the backfill columns and subjected to uniaxial compression tests followed by physical characterization (Gs, void ratio, water content, degree of saturation, specific surface area). The results showed that the total drainage water and the maximum observed settlement occur mainly within the first 72 hours after the columns are filled. The corresponding volumetric strains suggest that in situ backfilled stopes simulated behave in a similar way to the fully-drained (FD) or the half-drained (HD) conditions. The MIP test results show that the pore structure varies between the top and the bottom of each column.

May 1, 2007

By Adrian Rosen

When one thinks of innovation and leadership in wireless communications, one would rarely consider a potash mine to be leading the way. Agrium Incorporated has proven that they are leaders and innovators, as is evident in their recent deployment of a large-scale 802.11 wireless network in their underground potash mine located at Vanscoy, Saskatchewan. 802.11 is an IEEE standard for Wireless Local Area Network (WLAN) technology. Rather than simply replace an aging communications infrastructure, Agrium chose to let technology provide the framework for future success

May 1, 2006

By Olaf Andersen

Crucible melt extraction yields short metal fibers with eqivalent diameters as low as 50 µm from almost arbitrary metals and alloys. Highly porous components can be made from such fibers by suitable deposition and sintering methods. This technology is being developed at the Dresden based Department of Powder Metallurgy and Composite Materials of the Fraunhofer Institute for Manufacturing and Advanced Materials (IFAM) and has been applied to gold alloys and iron-base alloys containing small additions of precious metals. From the manufactured gold fibers, sintered structures were made for decorative applications. Additionally, it was found that due to rapid solidification during the fiber formation, precious metals can be finely dispersed in ironchromium- aluminum (FeCrAl) and FeAl20 alloys. Good catalytic activity at elevated temperatures was found in compositions containing 3 wt.-% Ce and 0.5 wt.-% Pt.

Oct 1, 2003

By Craig Naudé

"An enhanced gravity concentrator was installed in conjunction with an Intensive Leach Reactor at the Sadiola plant in Mali last year and commissioned in Dec 2007.There has been much debate over the years as to the effect of gravity concentration on overall plant performance. The late Dr Laplante suggested that for every 10% of gold recovered by gravity, there was a corresponding 0.1% to 1% additional overall plant recovery. The results at Sadiola are consistent with this hypothesis with an overall 4% gain in plant recovery.With total gold recovery of 12% in the gravity section, grades are increased from 3.54g/t in the gravity feed to an average of 2 600g/t in the concentrator feed to the in-line reactor. The recovery of gold in the in-line reactor is in excess of 98.5%.This paper discusses the background to the project, the laboratory testwork prior to the equipment selection, the operational results of the system, as well as the benefits of the future application of high mass yield centrifugal concentrators in base metals, sulphides and industrial minerals. Bench scale, pilot scale and plant practice examples are also presented.INTRODUCTIONBesides picking nuggets off the ground or out of riverbeds, gravity concentration is arguably one of the oldest methods of recovering gold. In circa 6000BC people discovered that gold can be found behind the rocks and in depressions of creek beds. By placing rocks in a stretch of channel with the proper slope the first sluice is built, probably around 4,000 BC, and this method is still practiced today."

Jan 1, 2009

By T. Backers

In fracture mechanics modeling the rock mass is seen as the combination of rock material and fractures, which are evident on different scales. The activation and propagation of fractures dominates the stability and performance issues as well as fluid flow potential. Once fractures have started to grow into each other and create through going separations, stability of rock engineering constructions may be violated. Further, as fracture mechanics inherently incorporated a scaling law in the form of the participating fracture length, scaling issues can be more accurately mirrored. This contribution highlights some examples of application of a fracture mechanics based code on some rock mechanics issues such as numerical laboratory experiments, borehole stability or the creation of fluid pathways due to underground constructions. The results show explicitly the creation of fractures and connection of existing ones, and hence the safety and performance issues. It has to be concluded that the basis for frequent application of fracture mechanics on specialized challenges in Geomechanics is laid, and the needs for future developments are defined.

May 1, 2009

By Mohamed Ourriban, Yongjun Peng, Qi Liu, Denis Cotnoir

"In the flotation of fine particles, there are two difficulties in general: low recovery of valuable minerals and high recovery of gangue minerals. The low recovery of fine valuable minerals is attributed to low bubble-particle collision and attachment efficiencies, while high recovery of fine gangue minerals is attributed to mechanical entrainment through water films between gas bubbles. Over the last five years COREM has been actively developing fine particle flotation techniques with the objective of improving fine particle flotation separation efficiencies.The fine particle flotation techniques with both generation of micro bubbles and enlargement of sizes of fine particles have been developed to increase bubble-particle collision efficiency. For oxidized fine sulphide minerals, both physical and chemical techniques have been developed to modify the hydrophilic surfaces and therefore increase bubble-particle attachment efficiency. To reduce mechanical entrainment of fine gangue minerals, a new approach, polymeric depression and flocculation, has been developed. By selecting the high molecular weight polymeric depressants to make fine gangue minerals hydrophilic and also enlarge their sizes, entrainment can be minimized. By combining these techniques, we are able to improve both flotation recovery and selectivity in some fine ore flotation systems.INTRODUCTIONWith depleting mineral resources and their declining grades, ores leaving grinding circuit for froth flotation are becoming increasingly finer to achieve mineral liberation. Together with the increasing demand for minerals, ever-increasing tonnages of fines are being produced. Therefore, flotation of fine particles is an immense challenge to be tackled by researchers all over the world today."

Jan 1, 2006

By M. Sturzenegger

This paper documents a field survey using long-range terrestrial digital photogrammetry at the Palabora open-pit mine, South Africa, for multi-scale characterization of rock mass discontinuities. Stereomodels covering the entire mine were generated based on photographs taken from a distance of 1600m across the pit, using a series of f=20-400mm lenses. Details on the methodology used and its accuracy are discussed. Preliminary results on discontinuity orientation, persistence and intensity are presented, highlighting the effect of observation scale. The potential uses of long-range terrestrial digital photogrammetry in open-pit mine and large natural rock slope environments is emphasized. The use of an f=400mm lens from distances larger than 1.5km may represent an important step forward in the geotechnical characterization of inaccessible remote rock faces.

May 1, 2009

By Yannis Faitakis, Simon Bergeron

"This paper describes the implementation of model-based predictive control (MPC) on a vacuum heat exchange network at Alcan's Jonquière Complex. The plant produces alumina from bauxite ore using the Bayer Process.The MPC system was commissioned in 2000, by Alcan personnel and an Advanced Control Engineer from Matrikon. The application has achieved an uptime of about 97%.The benefits were:• Energy savings : 0.5% - live steam reduction• Reduced variation: standard deviation of key temperatures reduced by 50%• Plant throughput increase: via the automated use of surge tanks• Decreased supervision time: by plant operations• Faster and easier diagnosis of problems and plant constraintsThe benefits were higher than expected with a payback time around 12 months.The purpose of the vacuum heat exchange network is to recover energy from a hot stream (pregnant liquor) by transferring it to a cold stream (spent liquor). The system is very tightly coupled, and the main constraints of the multivariable control system are: • to control the many tank levels involved in the process (8 tanks)• to maximize the temperature of the heated streams (spent liquor)• to prevent cooled streams (pregnant liquor) from cooling to below a minimum temperatureThe system includes 9 manipulated, 14 controlled and 2 feedforward variables.The advanced control implementation runs under an expert system environment and provides added flexibility to the overall control strategy."

Jan 1, 2003

By H. Harzer

Statistics Canada record s indicate that in recent years 70 to 80% of the entire Canadian coal production originated from Western Canadian mines, in which about 55 to 65% of the coals are bituminous. Until recently, less than 20% of the latter were extracted by underground methods , the remainder being surface-mined. However, it is estimated that within the foreseeable future up to 80 or 90% will have to be gained by underground techniques. Although Western Canadian coal resources are considerable, they are unfortunately locked in severely distorted, steeply pitching and faulted seams of variable thickness. Consequently, their economic extraction poses serious engineering problems. One possible solution to the problems is to apply hydromechanical methods to underground mining. This is a well-proven method shown to be economically viable under Western Canadian conditions. This paper endeavours to widen the scope of published data on hydraulic coal mining and is based on practical engineering and cost data gathered through contacts with West German designers and operators of hydraulic mines.

Jan 1, 1978

By Gregg S. Hill, Bert J. Huls

"This paper on coarse particle recovery (CPR) summarizes a process to capture coarse particles that are not recoverable by regular flotation. Several porphyry copper operations in the world operate analogous circuits that recover non-floated copper from tailings; however, the case presented here is unique in that extensive underlying test work has allowed us to elucidate some fundamental principles behind recovery enhancement. This paper discusses an overview of the flow sheet that is proposed to Minera Escondida Ltda., the nature of copper in the feed to the CPR circuit, and the various unit operations within the recovery circuit. Details of the technology behind each unit operation will be presented in later publications.INTRODUCTIONSince 1996 BHPBilliton and MEL (Minera Escondida Ltda.) have developed a process to recover copper from coarse particles in the rougher tailings. Copper recovery from fresh tailings is not new. Several operations in Chile, such as Chuquicamata, El Teniente (AMEC, 2003), Mantos Blancos and others have operated various forms of tailings circuits. Both Chuquicamata and El Teniente practice cascade flotation scalping off froth containing fine copper particles after allowing sufficient retention time, air inducement and, sometimes, additional reagent addition. Chuquicamata tailings are not segregated but floated in sequential cascade and conventional large cell arrangements. At the Valle Central operation of El Teniente a coarse fraction of mill tailings is ground and floated, with the rejects recombined with fine tailings and subjected to cascade flotation through a sequence of concrete launders as the tailings flow towards their final deposition area. Mantos Blancos cyclone the rougher tailings and blend the underflow with scavenger concentrate from elsewhere in the principal circuit prior to flotation in Wemco Cells. Kemess in BC, Canada operates a 160 m3 Outokumpu cell to reduce the tailings sulfur content (Rasmussen, et.al, 2004)."

Jan 1, 2005

By Dominic Fragomeni, Tony DiFeo, Martyn P. Hay

"As part of an investigation into flotation modelling of industrial scale operations, Falconbridge Ltd organised a “blind” test of the SUPASIM flotation model developed by Eurus Mineral Consultants (EMC). Two sets of rougher rate data, a flowsheet and the number and size of cells in the rougher bank were supplied from a plant that had been previously surveyed in November 2003. The name of the plant, cleaner circuit details and circuit mass balance were, at the time, unknown to EMC. With only these data, flotation performance was simulated and the cleaner circuit sizedFalconbridge then compared predicted and actual float performance and mass balance and found that final concentrate recovery and mass and circuit cell volume matched closely. Simulated recoveries relative to actual were +0.4% Cu, +0.1% Ni and -0.7% Co. However, prediction of metal distribution in the internal streams making up the various circulating loads showed some sizeable errors. On this initial success, the trial was extended and additional float test data for rougher feed, cleaner feed and cleaner scavenger feed was generated on site in April 2005. Further simulations significantly improved prediction accuracy for metal distribution in the internal streams. The average difference between predicted and actual recovery for all streams was reduced from 10.5% to 0.4%. This updated simulation was then used to ascertain the impact on final recovery, grade and plant circulating loads of increasing feed tonnage from 114 to 150t/hr. A number of scenarios were simulated in order to understand the contribution that (a) the fast and slow floating fractions and (b) regrinding of cleaner tailings are making to overall plant recovery.Simulation was then used to determine how much the flotation kinetics of both rougher feed and cleaner scavenger feed have to increase in order to deliver a 1.5% improvement in overall plant recovery. These improved kinetic values provide a target for laboratory testwork and operating conditions can be varied to determine how best to achieve these new values of fraction and rate."

Jan 1, 2006

By G. Deschênes

The Eleonore property (James Bay district of Northern Québec), owned by Goldcorp, hosts gold within stockworks of quartz-tourmaline-arsenopyrite veins and veinlets contained within microcline (potassic alteration) and brown tourmaline replacement zones. The preliminary investigation to recover gold from drill core samples showed that flotation followed ultrafine grinding and cyanidation is the preferred option. Ultrafine grinding is used to liberate gold finely disseminated in sulphides. The flotation concentrate used in the investigation had a P80 of 11 microns and contained 75.5 g/t Au, 5.0 g/t Ag, 10.3% S, 0.07% Cu and traces of antimony (0.03%). The mineralogical characterization showed the presence of 65% gangue minerals, 23% pyrrhotite (hexagonal), 9.6% arsenopyrite, 2.2% pyrite and 0.08% chalcopyrite with trace amounts of galena (0.05%) and sphalerite (0.03%). Gold was in the form of native gold and electrum. A straight cyanidation conducted at pH 11.0, DO of 3-5 ppm, 2000 ppm NaCN, 20 C 72 hours extracted 97.0% Au and consumed 31.5 kg/t NaCN. The equilibrium was reached within 24 hours. Increasing the dissolved oxygen to 16 ppm reduced the consumption of cyanide to 22.0 kg/t with 96.7% Au extraction. A 16-h pretreatment with 2.0 kg/t lead nitrate, followed by a 24-h cyanidation reduced the cyanide consumption to 6.0 kg/t with a gold extraction of 97.5%. Increasing the lead nitrate addition to 6.0 kg/t reduced the cyanide consumption to 1.2 kg/t by passivating the surface of pyrrhotite. The gold extraction remained at 97.0%. It was possible to decrease the concentration of cyanide to 800 ppm NaCN without compromising gold extraction. The associated cyanide consumption was 1.2 kg/t NaCN. The passivation of gold grains was an issue when the cyanide concentration was decreased to 550 ppm NaCN. The gold extraction decreased to 92.2%. The average lime addition for all the tests was 7.4 kg/t and the average silver extraction was 80%. Efficient cyanidation of an ultrafine sulphide concentrate with only 800 ppm NaCN represents an advance in leaching of ultrafine sulphide concentrates.

Jan 1, 2013

By M. Gaumont, F. Robichaud

"Agnico Eagle Mines Limited (AEM) is a Canadian-based gold producer with operations in Canada, Finland and Mexico. In 2010, AEM produced its first gold bar in Nunavut, Canada as it started its Meadowbank operation. It is also in 2010 that AEM acquired the Meliadine property, which is located 25 Km North of Rankin Inlet, Nunavut, Canada. The Meliadine gold project is an advanced exploration and development project, comprising of workers camp, underground and open mines, a processing plant and all the services facilities and infrastructures required to sustain operation in a remote arctic environment.Pending formal board approval, production start-up is planned for Q3 2019 and the process flowsheet is based on an ore processing rate of 1.1 million dry tonnes per year (3,000 dry tonnes per day from underground mining) for the first three years, and 1.98 million dry tonnes per year (5,000 dry tonnes per day from both underground and open pit mining) for the remaining years at 92% process plant availability.To the end of 2015, more than 45 metallurgical test programs have been conducted on the Meliadine deposits. Based on the results of these programs, an optimal gold circuit was designed, comprising of crushing, grinding, gravity separation and cyanide leaching with a carbon-in-leach circuit (CIL), followed by cyanide destruction and filtration of the tails for dry stacking. The assumed gold recovery for the reserves averages 96.0% at a 7.44-g/t gold average mill feed grade."

Jan 1, 2016

By Rodolfo Espinosa Gómez

"Industrias Peñoles, S.A. de C.V. – Mining Division, has initiated in the last ten years, six Mining Operations (Bismark, Tizapa, Ciénega, La Herradura, Rey de Plata, and Francisco I. Madero) and it has expanded several of their existing Operations (Sabinas, Fresnillo, Tizapa, Ciénega) one or more times.This work aims to share the experiences learned on this growing process. Some of these lessons are: 1) Project leaders must have a leadership that fosters good communication and team work; and this leadership style must come from top management. 2) A good communication must exist between the personnel from Engineering, Construction, and Operation. Also, this good communication must come from top management. 3) Starting the project with a solid Engineering Study. 4) Do not misunderstand cost with cost/benefit; always look at the cost/benefit. 5) Selecting good Contractors and good Suppliers. 6) Good training before the project commissioning is essential to reduce the learning curve period, this is even more important in areas where local people do not have any background in mining activities. 7) Recognizing that any project has a learning curve and it must be reflected on the production budget. 8) Avoid an over optimistic Mine preparation time schedule.BACKGROUNDIndustrias Peñoles S.A. de C.V.The mission of Industrias Peñoles, S.A. de C.V. (Peñoles) is to add value to non-renewable natural resources in a sustainable manner. Peñoles seeks to build long-term shareholder value; provide their customers with the highest quality products and services; maintain productive longterm relationship with their suppliers; develop and promote the capabilities of their personnel; foster mutually beneficial relationship with the communities in which it operates, and preserve the environment.Peñoles was established on 1887. It is a Mining Group with integrated Mining, Smelting and Refining operations of non-ferrous metals, and also produces inorganic chemistry materials. Peñoles is the main World producer of refined silver, metal bismuth, and sodium sulphate; Latin American leader in the production of refined gold, lead, and zinc.The Mining Group is made-up of nine mining operations producing concentrates with high gold, silver, lead, zinc, and copper contents. It produced in 2002, 365,900 ounces of gold; 52.7 million ounces of silver; 86,820 tonnes of lead; 266,000 tonnes of zinc, 11,840 tonnes of copper; with a total values of 3,780.6 million of Mexican pesos (~ $ 378.0 million U.S. Dollars)."

Jan 1, 2004