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By R. Lasmanis, W. C. Utterback

"The Mount Tolman porphyry Mo-Cu deposit is 64 km south of Republic, Ferry County, Washington. It occurs in the composite Keller Butte pluton, which consists of the Keller Butte porphyritic biotite granite and granodiorite, the Mount Tolman quartz porphyry granite, and the Meadow Creek biotite granite phases. The three phases range in age from 61.3 Ma ± 2.3 Ma to 55.7 Ma ±2.0 Ma. The stockwork deposit occurs in the Keller Butte phase above the contact with the Mount Tolman quartz porphyry granite.Mount Tolman is a hybrid calc-alkaline deposit that has features of both a Climax-type and a plutonic type. Prior to post-ore faulting, the deposit had a flattened hood like shape. In plan it is elongated- 1.6 km wide, 3.2 km long, and up to 609 m thick. The orebody has a 292 o strike. It contains a geologic reserve exceeding 2.18 billion tonnes of ore averaging 0.093% MoS2 and 0.09o/o Cu using a 0.048% MoS2 cutoff. Of this total, 816 million tonnes of measured and indicated ore averaging 0.097% MoS2 and 0.09o/o Cu could be mined by open pit with an overall waste-to-ore ratio of 0.91 to 1.The deposit is a stockwork of quartz and quartz-sericite-pyrite veins and fracture fillings that contain molybdenite, chalcopyrite, sphalerite, and magnetite. Five separate episodes of fracturing and mineralization produced the orebody and were followed by four additional episodes of fracturing with sulrgrade mineralization. The Mount Tolman deposit contains propylitic, argillic, phyllic, topaz greisen, and potassic alteration zones. Extensive silicification overlaps the K-feldspathized, quartz-topaz, and phyllic alteration zones."

Jan 1, 1995

By J. E. Dutrizac, Alba Sunyer

The factors affecting the precipitation of arsenic-free alunite (KAl3(SO4)2(OH)6) were investigated in a series of laboratory experiments. Although the amount of alunite precipitated increased with increasing retention time, temperature, solution pH and the concentrations of Al(SO4)1.5 or K2SO4, the composition of the products remained nearly constant. The preferred conditions identified for the precipitation of arsenic-free alunite were then used to assess the behaviour As(III) and As(V) during alunite precipitation at 98°C. Increasing additions of As(III), as NaAsO2 or As2O3, resulted in a slight increase in the amount of precipitate formed at pH 2.80. However, X-ray diffraction analysis showed all the precipitates to be alunite, and <0.2% As(III) was detected in the products. In contrast, increasing additions of As(V), as KH2AsO4 or As2O5, resulted in significant increases in the amount of precipitate formed at pH 2.80 or 3.00. Furthermore, the arsenate (AsO43-) contents of the precipitates increased up to 15%, and the sulphate contents decreased, as the As(V) concentration of the synthesis solution increased from 0 to 9 g/L. X-ray diffraction analysis of the products detected only alunite, but there was a progressive expansion of the alunite cell with increasing arsenate content. The implication is that arsenate substitutes for sulphate in the alunite structure. Preliminary observations on the environmental stability of the arsenate-bearing alunite using the TCLP protocol gave solubilities <0.4 mg/L from a precipitate containing 8.5% AsO4 and 7.8 mg/L from a product containing 19.5% AsO4. Thus, it appears that alunites containing less than -10% AsO4 would be an acceptable vehicle for the disposal of arsenic from hydrometallurgical processing solutions.

Jan 1, 2011

By Kyeong Woo Chung, Ho-Sung Yoon, Jyothi Rajesh Kumar, Chul-Joo Kim, Sung-Don Kim

The aim of the present study is to investigate the extraction, separation and recovery of the indivisible metals of dysprosium and neodymium from permanent magnets scrap leach liquor solutions with meaningful recovery. The present experimental development focused on dysprosium separation from neodymium and recovery by suitable mineral acids. Fundamental studies of the effect of time, pH and extractant concentration on the metal separation were conducted followed by proposal of a mechanism for extraction. Process development included generation of McCabe-Thiele diagrams and counter current extraction (CCE) studies. After loaded organic generation from the CCE process, this was followed by scrubbing studies as well final recovery of dysprosium.

Jan 1, 2014

By F. L. Thompson

MAN has been using lubricants of one type or another for at least four thousand years, and probably for a much longer period. We have learned from the inner wall of the tomb of Tehuti-Hetep, on which is a decoration illustrating the method of moving a great stone statue, that as early as 1650 B.C. lubricants were used to facilitate the movement of heavy loads. The Egyptians had available nearly every animal oil and fat, as well as at least thirteen vegetable oils, of our time, all used for food products and in the arts. Examination of the deposit on the axle of a chariot from an Egyptian tomb of 1400 B.C. showed it to consist of animal fat, quartz, sand, iron, and compounds of aluminium and lime-indicating a manufactured lime-soap grease made with lime-soap and possibly tallow. This would not be a bad lubricant for the axles of chariots which had to travel over sandy soil in hot weather. As to the method of grease application, it is remarkable that, from the time wheels were first used in the far distant past up to the present day, no one has ever thought it necessary to design a seal to keep the lubricant in and the dirt out. While time certainly marches on, we have today, in waggons throughout the world, exactly the same form of lubrication as was used in the earliest chariots. From the early days of the chariot until shortly before 1800 A.D. (when the steam engine was introduced), the main heavy equipment required for mining purposes, for machines of war, etc., was made of wood. The bearings were rough, but usually they had metal in the lower half. Light machinery was made of bronze, brass, or iron. Large clearances and poor alignment, plus the fact that speeds were much below present-day demands, combined to provide conditions that were quite satisfactorily met by the lubricants available. These were often produced locally by the machine operator. In northern countries, lard oil, prepared from the fat of hogs, was the universal lubricant employed in machine shop, as a belt and leather dressing, and for cutting operations. Sperm oils were used for light machinery, whereas beef and mutton tallow were more generally employed for the largest bearings. For the early steam cylinders, a slug of heated beef tallow was injected wherever the cylinders gruntingly complained of a lack of lubricant. Southern countries, however, resorted to the use of vegetable oils-olive, cocoanut, etc.

Jan 1, 1940

By Peter A. Adcock, Rob Fraser

Interest in monitoring nucleation overpotential in electrometallurgical processes dates back some 40 years or more. Conversely, remarkable progress has been made in recent years on describing in detail the processes involved in the formation of thin films by electrodeposition. The newer body of work underscores a need for greater clarity in speaking about the role of nucleation and in the acquisition and interpretation of nucleation overpotential measurements – the aim of this paper. In electrometallurgy, it is generally desirable to form deposits that remain smooth, compact, and relatively fine-grained while the deposit grows to a thickness on the order of 5-10 mm, about 100 times thicker than technological thin films. Hence, we distinguish two kinds of nucleation that can result in formation of new grains:- (1) initial nucleation (onto the substrate surface) of islands that coalesce into growing deposit, and (2) ongoing nucleation of new grains on the deposit surface long after the substrate has been covered and ceases to have a direct influence. Nucleation overpotential of the first type should be measured on an electrode surface truly representative of a real industrial substrate. The second type requires judicious choice of electrode material – an “ideal foreign substrate”. In general neither the industrial substrate nor native metal to be deposited is suitable for measurement of the second type of nucleation overpotential, because of interference by other processes. For the future, clear terminology is needed to distinguish these two types of nucleation potential. The second is the one for which the type of plot dubbed by Moats and Derrick as an “Adcock plot” and by us as a “Kerby-Adcock plot” was first conceived and correlated with relatively thick zinc electrodeposits. The data of Moats and Derrick showing trends for copper electrodeposition on stainless steel and on copper electrodes are interpreted within this framework.

Jan 1, 2016

By E. J. Marcotte

"IntroductionDevelopments in the preparation, hydraulic transportation and placement of classified mill tailing as an effective backfill and support for mining excavations, have made feasible several advancements in mining methods that are safer and more economical. Hydraulic backfill systems have played an integral part in the development of more efficient cut-and-fill and blasthole stoping.The hydraulic transportation of tailing fill has made possible the elimination of expensive and laborious transportation, placement and spreading of gravel type fills. Also, in cut-andfill stopes, the use of hydraulically placed consolidated fill has largely eliminated the need to use extensive timbering for floors and supports, previously necessary when only gravel type, waste rock or unconsolidated tailing fill was used .Another important advantage of using mill tailing as backfill is that it decreases the need to contain a large portion of the mill solids waste in a surface disposal area and thus reduces environmental and ecological problems.Tailing Fill PropertiesConsolidated tailing fill consists of deslimed mill tailing and Portland cement. These two materials are mixed together in various proportions to form a high density slurry which is transferred underground by gravity through boreholes and pipelines. After placement underground, the water is drained off and the mixture is allowed to set. The strength of the consolidated fill is dependent on the cement content, particle size distribution and curing time. A typical tailing/ cement ratio used for bulk filling in stopes requiring vertical wall support is 30:1. Ratios ranging from 8:1 to 5: 1 are used for stope floors. High pulp densities minimize segregation and loss of cement during placement as well as reduce the amount of drainage water to be handled."

Jan 1, 1989

By Carl Lausen

Within recent years several mining companies have sent expeditions co the east end of Great Slave lake co determine the mineral possibilities of that area. Little was known of the geography of the region, and even less of the geology; and, not until Blancher&apos;s survey was made and the results published, was an accurate map of the lake available. Early explorers followed the Inconnu channel and the north shore of McLeod bay to Port Reliance, and, just prior to Blancher&apos;s survey, Hornby showed that the southern passage was feasible. Apparently, but few geologists have ? travelled through the country, for geological information is meager. In 1900, Robert Bell, of the Geological Survey, made a trip to Fort Reliance by way of the north shore of McLeod bay, and he gives a brief description of the geology. The present paper is the result of an expedition into this little-known region by Mr. Geo. M. Douglas and the writer in the summer of 1928. The south shore of Great Slave lake was followed to the east end of Tochatwi bay, and an extensive exploration was made of Kahochella and Pethei peninsulas. The prime object of the expedition was co determine the presence or absence of the copper-bearing Keweenawan basalts.

Jan 1, 1929

By L. J. Friedman

The recovery of sulfur dioxide from metallurgical gases for the production of sulfuric acid has been the primary means of reducing sulfur dioxide emissions from nonferrous smelters. Sulfuric acid has been produced from gas originating from fluid bed roasters, electric furnaces, reverberatory furnaces, flash smelting furnaces, Pierce Smith and flash converters, sinter machines, etc. The gas from each of these sources has a unique set of variables that affect the design and operation of the sulfuric acid plant. In addition, the sulfuric acid plant itself has been evolving, with new equipment designs and materials. This paper will review each of the unit operations in the gas cleaning and contact sections of the metallurgical sulfuric acid plant, discussing various equipment designs, materials and the handling of gas stream variables and impurities. The paper updates to 2007 previous works on metallurgical sulfuric acid plants by the authors, and analyzes new equipment and systems, including: FRP or alloy quench systems, alloy converters, towers and pump tanks, heat recovery systems, high efficiency mist eliminators, tower packing, etc.

Jan 1, 2007

By A. Y. Smith, R. J. Allan, E. H. W. Hornbrook, R. W. Boyle, W. Dyck

"HYDROGEOCHEMICAL METHODS in the Canadian Shield can be based on analyses of the following :(1) spring waters and their precipitates;(2) stream and river waters;(3) lake and muskeg waters;( 4) ground waters from drill holes, wells, faults, etc.;(5) waters issuing from diamond drill holes, faults, shear zones, etc. into mine workings and open pits; also analyses of precipitates associated With these waters.The first four can be utilized in both reconnaissance and detailed surveys. The last is suitable only for detailed work.For hydrogeochemical methods of prospecting to be effective, the following conditions must be present. 1. Natural waters must come into contact with mineral deposits and remain in contact with them long enough for the solution of detectible amounts of ore, gangue or indicator elements. 2. Dispersion patterns must be present in the hydrologic systems in order to trace the elements back to their source. These patterns may take the form of trains (e.g., increasing amounts of elements upstream toward t he source (s), Figure 1 ) or halos (e.g., increasing amounts of elements in bodies of water toward the source (s), F igures 2 and 3)."

Jan 1, 1971

By C. J. R. Braithwaite, Giancarlo Rizzi

"The Navan zinc-lead ore deposit (70 million tonnes) is hosted principally (97%) by the Meath Formation (Lower Carboniferous, Courceyan, Navan Group), comprising a lower, mainly carbonate mudstone unit, the Stackallan Member, and an upper grainstone-dominated unit. TheStackallan Member, about 60 m thick, comprises about 35 peritidal cycles including an oolitic grain-stone interval. Grainstones forming the upper part of the formation, about 150 m thick, comprise at least six shallowing-upward ramp cycles. Emergence horizons are indicated by subaerial dissolution surfaces, in situ breccias, and a single palaeosol.Most dolomitization at Navan is con?ned to the Meath Formation. The linear dolomite body,trending NE-SW, has a ?attened, laterally limited, tabular geometry in cross-section, suggesting that dolomitizing ?uids initially rose vertically, cross-cutting stratigraphic and sedimentological bound-aries, although ?uid ?ow was subsequently controlled by these features.Three stages of dolomitization are indicated by textural relationships, cathodoluminescence (CL),oxygen isotopes, and ?uid inclusion data. Stage 1 crystals, with generally dully luminescing cores and up to six overlying subsidiary zones, are the main replacive phase. Crystal surfaces are commonly corroded and overlain by bright stage 2 rhombs (which also form new nuclei lining molds and fractures). Three subsets of zones are present in stage 2 crystals: bright, non-luminescent, and dull; these are locally separated by additional corrosion surfaces. Stage 3 comprises relatively large baroque crystals, generally dully luminescent but with up to seven sub-zones. Isotopic and ?uid inclusion data suggest growth of successive stages from waters which became progressively hotter(60°–160°C).The distribution of the ores follows the dolomite trend. Ores were precipitated between Stages1 and 2 of dolomite growth, following Stage 2, and also during the nucleation and growth of Stage3 crystals. Dolomitization and mineralization appear to have been temporally and genetically related. The cyclic sedimentation of the host rocks, which accentuates lithological and petrographical contrasts between depositional units, controlled dolomitization. The relationship between dolomitization and mineralization, which is closely associated with faults, provides powerful exploration criteria. The recognition of these features in limestones elsewhere in the Irish ore ?eld may point toward unrecognized zinc-lead prospects."

Jan 1, 1997

By C. J. R. Braithwaite, Giancarlo Rizzi

"Abstract-The Navan zinc-lead ore deposit (70 million tonnes) is hosted principally (97%) by the Meath Formation (Lower Carboniferous, Courceyan, Navan Group), comprising a lower, mainly carbonate mudstone unit, the Stackallan Member, and an upper grainstone-dominated unit. The Stackallan Member, about 60 m thick, comprises about 35 peritidal cycles including an oolitic grainstone interval. Grainstones forming the upper part of the formation, about 150 m thick, comprise at least six shallowing-upward ramp cycles. Emergence horizons are indicated by subaerial dissolution surfaces, in situ breccias, and a single palaeosol.Most dolomitization at Navan is confined to the Meath Formation. The linear dolomite body, trending NE-SW, has a flattened, laterally limited, tabular geometry in cross-section, suggesting that dolomitizing fluids initially rose vertically, cross-cutting stratigraphic and sedimentological boundaries, although fluid flow was subsequently controlled by these features. Three stages of dolomitization are indicated by textural relationships, cathodoluminescence (CL), oxygen isotopes, and fluid inclusion data. Stage 1 crystals, with generally dully luminescing cores and up to six overlying subsidiary zones, are the main replacive phase. Crystal surfaces are commonly corroded and overlain by bright stage 2 rhombs (which also form new nuclei lining molds and fractures). Three subsets of zones are present in stage 2 crystals: bright, non-luminescent, and dull; these are locally separated by additional corrosion surfaces. Stage 3 comprises relatively large baroque crystals, generally dully luminescent but with up to seven sub-zones. Isotopic and fluid inclusion data suggest growth of successive stages from waters which became progressively hotter (60°-160°C).The distribution of the ores follows the dolomite trend. Ores were precipitated between Stages 1 and 2 of dolomite growth, following Stage 2, and also during the nucleation and growth of Stage 3 crystals. Dolomitization and mineralization appear to have been temporally and genetically related. The cyclic sedimentation of the host rocks, which accentuates lithological and petrographical contrasts between depositional units, controlled dolomitization. The relationship between dolomitization and mineralization, which is closely associated with faults, provides powerful exploration criteria. The recognition of these features in limestones elsewhere in the Irish ore field may point toward unrecognized zinc-lead prospects."

Jan 1, 1997

By L. C. S. Dharmasiri, S. M. Shin, A. Senaputra, J. S. Sohn, K. H. Park, J. Avraamides

Reducing agents can be applied to leach metal values from natural and secondary resources such as laterite ores and deep sea manganese nodules and recycled materials such as spent batteries / catalysts which contain high-valent metal oxides of manganese, cobalt and iron. Selective leaching of some metals can be achieved by selecting conditions to control the saturated solubility and dissolution rates of metals from oxides or mixed metal/oxide matrices. The leaching results are rationalized on the basis of chemical species, Eh-pH diagrams and heterogeneous kinetic models. The role of reducing agents such as hydrogen peroxide, sulfur dioxide and iron(II) sulphate, in acid, alkali and in the presence of complexing ligands such as ammonia for the improvement of the leaching of metal oxides and metals is discussed. Previous studies on acid leaching of metals from nickel laterites, manganese nodules and spent catalysts/batteries in the absence or presence of reducing agents show that the rate controlling step involves the diffusion of protons through a thickening product layer on the particle being leached. It is shown that the leaching of nickel and cobalt from manganese nodules and zinc-carbon batteries in ammoniacal sulphur dioxide solutions also obey shrinking core kinetics.

Jan 1, 2014

By A. A. Brant

Self-potential methods are based ?on measurements on the surface of voltage distributions caused by natural sub-surface oxidation phenomena. The attempt is made to. correlate voltage minima or maxima with the location of mineral materials or geological conditions which may give rise to such naturally produced spontaneous potentials. Any orebody undergoing oxidation is a source of electric current. Ground waters carrying free oxygen attack the upper surface of the body, rendering this the positive pole of a galvanic cell, with the lower portion of the body the negative pole and the surrounding weak acidic waters the electrolyte. Current flow is from positive to negative through the orebody and negative to positive through the electrolyte, i.e., through the surrounding rock. The upper end of a steeply dipping, tabular orebody is hence indicated as lying below the point on the surface where the largest negative potential is observed(l). From its basis, it is apparent that the self-potential method was developed primarily for ore exploration.

Jan 1, 1942

By D. S. Conochie

The world is poised for rapid growth in consumption as large, less developed economies acquire greater wealth. It might be expected that there would be a corresponding growth in waste generation, but this might not necessarily be the case. The metallurgical industry has an excellent record of process development which has allowed it to provide a high tonnage supply of low cost, high quality metals. Environmental challenges have been faced and indeed the recycling of scrap iron through the electric arc furnace has made a massive contribution to cleaning up obsolete structures and equipment of past generations. Issues in waste generation and processing still remain, and the expectation for cleaner processing and environmental performance continues to rise. The waste impact of key process developments of the last century and the recent developments in metallurgical waste processing in Canada will be outlined. The potential to use state of the art design tools to produce the next generation of zero waste processes will then be explored.

Jan 1, 2004

By P. Hubert, J. P. Ildefonse, F. Qafssaoui, J. Poirier

Corrosion tests by corrosive alumina-lime slags were carried out on commercial high alumina bricks used in steel ladle linings and model refractories (with different raw materials : bauxite, andalusite, and different microstructures). Using (SEM) scanning electron microscope and (EDS) energy dispersive spectroscopy, microstructures of slag-corroded refractory interfaces were studied in detail. The monomineral and glassy phases, the composition of reaction products and chemical profiles were determined. A thermochemical analysis based on phase equilibrium diagrams has permitted to estimate the proportion and the composition of the high temperature intergranular liquid phase. These data were compared to the experimental microanalysis results. The viscosity of the high temperature liquids were calculated according to Urbain &apos;s model and the relationship between the viscosity and the penetration of liquid phases were discussed. These theorical and experimental results were used to understand the complex phenomena of slag penetration and corrosion of andalusite and bauxite refractories at high temperature and to propose new ways of improvements for the formulation of high alumina refractories.

Jan 1, 2004

Operating and Social Considerations from a Contractor?s Perspective

May 1, 2013

By G. W. Poling

"Construction, equipping and planned operation of a new laboratory for engineering-teaching and research in coal and mineral processing is described. This facility will provide approximately 1860 m2 (20,000 ft. 2 ) of laboratory space with nearly half devoted to a new venture in coal preparation. Two high-bay, overhead crane-accessed areas will accommodate major unit operations for each of the ""coal"" and ""mineral"" laboratories. COAL PREPARATION FACILITIES:The coal facility provides three main functional areas:(1) Sample preparation (drying, blending, crushing, screening) and sink-float washability testing.(2) Unit operations U1igh-bay, serviced by crane).(3) Analytical laboratories.(l) Sample Preparation and Sink-Float TestingBreaking or comminution of coal will be accomplished using a rolls crusher, a hammer mill, a jaw crusher, or a pulverizer. Capacity to prepare coal at rates of up to approximately 4 tph will be provided by some of these units. Large diameter (~0.5m) baths of heavy organic liquids will be available for sink-float washability tests on coal samples of several kg. Particle sizes of up to 25 mm can be tested in these baths. Smaller scale washability tests on finer samples will be accelerated by centrifuges."

Jan 1, 1980

By Richard W. Lawrence, Richard Poulin

"Numerous processes co-exist for metal extraction and for metal removal from effluents of mining operations. Each process enjoys an economic advantage, including environmental cost and benefit, if utilized in a specific situation. This applies equally to biohydrometallurgical processes. This paper will analyze four types of biohydrometallurgical processes for their economic and environmental attributes: biooxidation of refractory gold, extraction of copper from sulfide, metal removal from effluents by active sulfate reduction, and metal removal by the use of wetlands. By examining the economic and environmental advantages of these processes, generalizations can formalized and it becomes possible to define niches of application where biohydrometallurgy can be considered. Our analysis shows that biohydrometallurgy can be efficient at small scale, be more environmentally friendly than conventional technologies and is relatively easier to operate. The higher financial risk associated with unproven technologies at the commercial scale is being eliminated as biotechnology-based plants are put into production.IntroductionBiotechnology can be described as the rational exploitation of the activities of living cells or parts thereof, requiring an integrated multidisciplinary approach between biological and technical disciplines. Microbiology, biochemistry, botany, molecular biology, chemistry and engineering all contribute to practical applications in the extraction, manufacturing and service industries, and in environmental management. Considerable commercial success of biotechnology has been achieved in several sectors, including health care, agriculture, forestry and aquaculture.Over the past 40 years, industry, research organizations, government laboratories, and universities in a large number of countries have participated in investigating the utilization of biotechnology applications in mining. Today, several technologies are used commercially in well understood and engineered systems which can be grouped under the term biohydrometallurgy. Many more technologies have been demonstrated at laboratory or pilot plant scale. Although initial developments and commercial applications were aimed at metal extraction, the dramatic increase in environmental awareness, the practice of sound environmental management demanded by more stringent regulations over the past decade, and the need for low cost treatment in perpetuity, has led to serious investigation of biotechnology for environmental control. In addition, increasing power costs, lowering of ore grades, and decreasing commodity price in real dollar terms require the use of highly efficient and competitive extractive technologies."

Jan 1, 1998

By Michael Hopp

The beginning of the electroforming technology dates itself on the beginning of the industrial revolution 1800 to 1820 approximately. Basis was the existence of electricity in order to be able to drive the electro-form-process. With the development of the electroforming, big names of the science-history, like Michael Faraday (1791? 1867), Sir Humphry Davy (1778?1829), Max Schlöter (1878?1946), Werner von Siemens (1816?1892), and many others. Already about 1840, the first monograph originated to electroforming (38). While in the first years the electro-forming most extensive only to the coating of art - or other usefulness-objects was used. At the beginning of the 20th century the formation of objects from pure metals became more and more, later also from alloys to application. One of the first bigger electroforming factory, the ?Württembergische Metallwarenfabrik? was working 1894 in Geislingen / Steige, Germany. In the industrial application, the electroforming-technology is to be imagined away for miscellaneous coatingtasks and the form-body-preparation no longer today (18). A little bit confusing is the german name ?galvano-technology?. It based on the Italian physiologist and naturalist Luigi Galvani (1737 ? 1798). This technically seen is however wrong, right, the name is electroforming. The physical bases were founded mainly by Michael Faraday and Sir Humphry Davy.

Oct 1, 2003

By Robert B. Parsons

"A t last the legal red tape which has tied up flow-through share financing has been cut. New rules effective for deals signed after 1986 simplify flow-through financing by removing the necessity f or cumbersome agency relationships. But there is no free lunch-the new rules require increased government reporting. And beware federal tax reform promises to have a good look at the new flow-through share rules. IntroductionFlow-through shares have always worked better in theory then reality as an effective financing tool. The concept is straightforward: a transfer of risks, tax deductions, and potential returns. But the mechanics of the old flow-through rules made the transfer of risk impractical to impossible by placing the responsibility for incurring Canadian exploration expense (CEE) on investors. The new rules are significantly more realistic, shifting that responsibility to the issuing corporation. However, every silver lining must have a few clouds around it. In the case of the new flow-through rules, the more obvious negatives are increased reporting requirements and reductions in CEE eligible for flow-through by amounts of assistance received. The new rules are effective for deals signed after 1986, however, so a few old-style deals are still around. Practical Difficulties with Old RulesThe old rules which applied to investments in flow-through shares were structured so as to make it the responsibility of the investor, rather than the issuing corporation, to perform the Canadian exploration expense for flow-through. Since most investors had neither the expertise nor the inclination to incur the CEE, this requirement necessitated the use of cumbersome arrangements whereby the investors would appoint an agent (usually the issuing corporation) to incur CEE on their behalf. Although the issuing corporation might consequently be the party which actually spends the flow-through share funds on CEE, the awkward legal structure of such an arrangement made the investor the ""principal"" incurring the CEE. As such, the requirements of the old rules were met and the investors could receive their flow-through share s."

Jan 1, 1987