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By Stanley Davidson

Introduction The ore deposit mined by Falconbridge Nickel Mines, Limited, is one of the numerous nickel-copper sulphide bodies marginal to the large oyster-shaped mass of differentiated norite in the Sudbury district, famous as the world's most important nickel producing field. The unique character of the ore deposits of the district has resulted in its intensive geological study over a period of more than fifty years. The results of these studies have given rise to a voluminous geological literature and to a great deal of controversy as to the genesis of the ores. This description of the structural geology at the Falconbridge mine is presented in the hope that it may form a small part of the chain of evidence leading to a reasonably satisfactory explanation of the ore genesis. The mine, named after Falconbridge township in which the deposit occurs, lies along the southeast margin of the norite mass which, however, is here concealed beneath a deep mantle of glacial sands and gravels averaging over 100 feet in thickness. As a consequence, the deposit was not discovered by the early prospectors, and it was not until 1916-17 that E. J. Longyear, of Minneapolis, located the ore by drilling. The discovery was foreshadowed in 1899 by the work of Thomas A. Edison, who found indications of the deposit by what is believed to have been a combination of magnetic and electrical geophysical surveys. He sank a prospect shaft over what has to date proven to be the largest and richest ore section in the mine. A wet quicksand layer at the rock surface proved impenetrable, however, and the "Edison' shaft never reached bed-rock.

Jan 1, 1946

By E. J. Haug, M. M. Fine

For several years work has been carried on by the U.S. Bureau of Mines at Rolla, Mo., to develop improved methods of concentrating the oxidized ores of lead and zinc. Various samples have been investigated, and results on some have been published. Details of the progress to date are given in a mineral dressing study now being conducted for an extensive oxidized lead-bearing tract in southeast Missouri, property of St. Joseph Lead Co. These oxidized ores present problems typical of many encountered in modern mineral dressing research in that recovery of very fine particles is of

Jan 4, 1955

C. Q. PAYNE, New York, N. Y. (written discussion*).-The method adopted by Mr. Lennox is a very interesting test of the practical application of Mr. Gates' crushing-surface diagram to a greet variety of gold and copper ores. His method of dealing with the material below 200-mesh is also a distinct contribution to the subject, although, as he suggests, it seems likely that some microscopic measurement of this material may be advisable before the mesh reciprocals of its group particles can be dealt with as accurately as can those coarser than 200-mesh. In examining the general results shown in Table 3, it is somewhat puzzling to perceive why Calumet &, Hecla jig tails should show a crushing resistance 3 - times greater than that of the ore from the Ray Consolidated copper mine. The latter is, I believe, an altered. Pinal schist

Jan 10, 1918

By George A. Bell

The mine and milling plant of Demonstration Gold Mines, Ltd., is near the city limits of Baguio, Mt. Province, P. I. The mine road connects with the main highway to Manila. The nearest railway point is near sea level, approximately 40 miles distant. The Baguio district is very mountainous and has one of the heaviest rainfalls in the world. It is therefore difficult to maintain roads or to impound tailings and mine dumps. All supplies are trucked into the district direct from Manila or the nearest railway point, which means uncertain deliveries and high freight rates. Installation of equipment is difficult and costly. The average elevation at the mine is 4000 ft. and the climatic conditions are ideal except for a three months rainy season. The company generates its own power for mining and milling operations with three 400-hp. Ruston Diesel engines direct connected to 250-kw. General Electric alternating current generators. Labor conditions have been excellent, although at present social security laws are causing some unrest. Labor receives a higher average wage rate in this district than other labor in the Islands. The company also furnishes free living quarters, hospitalization and workmen's compensation. Taxation has been reasonable up to the present time, but some of the new mining legislation may make it difficult to operate and pay dividends. The future depends largely upon the continuation of $35 gold and the political outcome in the Islands. History The Demonstration ore body was worked by the Igorots for many years, as evidenced by old stopes and fill encountered in present operations. Attention of Americans was first attracted soon after the Spanish-American war. During the building of the Benguet road to Baguio, the engineers and foreman became interested in the geology of the district.

Jan 1, 1939

By Ito H, Noguchi F, Ueda Y

DTA curves of synthesis lead sulfide and commercial. lead concentrates during oxidation were measured to clarify the mechanism of ox- idation of lead sulfide. The oxidation reac tions could be divided to elementary reactions with production of basic lead sulfates such as 2PbO PbSO4. An existance of iron sulfide played an important role of the oxidation of lead concentrates. The oxidation rates of lead sulfide were measured in the wide range of oxygen potenti- als using IR type SO2 gas-meter. The oxidation rates under low Po 2 which corresponds to the direct oxidation smelting were much lower than those obtained under high Pot. The combustion temperatures of lead sulfide were also measured by hot thermocouple method. Those values were extremly low compar- ing the oxidation temperatures obtained by DTA.

Jan 1, 1987

By E. J. Gleim

In the mining of coal the trend is toward more and more mechanization. This increased use of machinery to replace hand labor is assuming many new forms and presents a constantly changing aspect. Safety engineers must be alert if the many electrical problems resulting from these new installations are to be handled safely. Some of these problems present possible electrical hazards that may be overlooked by the safety engineer unless they are called to his attention by one who has made a special study of the conditions. The foregoing is especially true of conveyor systems of mining. The terms "conveyor systems" and "conveyor mining" as used in this paper refer to those systems in which various types of conveyors are employed to transport coal away from the working place. In some mines this means complete elimination of track, cars, and locomotives. In others it means that conveyors take the coal from the working place to a convenient loading point, from which transportation is completed by cars and locomotives.

Jan 1, 1941

By S K. Ray

Open fire in a mine gallery causes large-scale damage to property and sometimes precious lives. Such fires produce two distinct effects, the throttle effect and the buoyancy effect. These effects disturb the ventilation system of the mine. To understand the complex dynamic phenomenon of open fire and its effect on ventilation systems, a mine fire model gallery has been designed and constructed at Central Mining Research Institute, Dhanbad. Two sets of experiments at air velocities of 1 and 1.5 m/s were conducted in the gallery using coal samples from the Dobrana seam of the Raniganj coalfields. After about an hour of development of fully-fledged fire, heavy backlash, with smoke and fumes, was observed. At the time of backlash occurring the gallery was divided into two zones. In the region of the gallery from the base up to 1.4 m the airflow was normal, in the remaining upper portion the airflow was the reverse. Air quantity reduced substantially, while pressure dropped across the fire zone, the products of combustion (POC) and temperature increased during the period of the throttle effect. It has been revealed from these studies that with an increase in airflow, pressure drops across the fire zone, POC, temperature and reduction in airflow increases. This paper addresses the important design features of the gallery, the instrumentation system, the experimental procedure and assesses the effect of open fires on mine ventilation systems.

Jan 1, 2005

By J. B. Cheatham, R. B. Paslay

Rock stresses and steady-state flow rates induced by the pressure gradient associated with the flow of formation fluid into a borehole have been analytically determined for a permeable, elastic material saturated with an incompressible fluid. In this analysis, the material properties and loading are considered to be symmetric about the axis of the borehole and independent of axial position. For Case I the material is assumed to have uniform permeability in the radial direction, whereas for Case 11 the permeability is assumed to have been reduced in a localized region adjacent to the hole by either normal well completion and production operations or deliberate plugging during air drilling. Results of a numerical example indicate that, in the absence of plugging, the rock shear strength must be approximately two-thirds the formation fluid pressure in order to prevent rock failure. The required rock strength is high for small radial zones of plugging and decreases as the region of reduced permeability becomes larger; however, a depth of plugging can be reached beyond which there is no real gain in strength, although the flow rate can be further reduced. INTRODUCTION During normal production of oil from a well, it is often desirable to increase the production rate of the formation fluid by increasing the pressure gradient through the formation adjacent to the borehole. Depending upon the magnitude of this pressure gradient and strength of the rock material, this production-rate increase can cause sloughing of the hole wall. In many cases, the production - rate increase can result in excessive sand production, increased wear of production equipment, lost production time and expensive workover jobs. In addition, the phenomenon of increased rock bit penetration rate with the use of a gaseous instead of a liquid drilling fluid has been observed in oilfield drilling operations and experimentally demonstrated by various investigators for several years. The improvement obtained by employing this technique can be quite significant and offers apromising method for reducing drilling costs. However, air drilling is currently limited to geographical locations where high-capacity water-bearing formations are not encountered. This limitation has prevented widespread adoption of air-drilling techniques, because the water influx into the borehole interferes with efficient removal of the drilling cuttings and usually results in a condition such that the bit becomes "balled-up" or stuck in the hole. In an attempt to remove the water - intrusion limitation from air drilling, various chemical and mechanical water shut-off methods have been proposed. Goodwin and Teplitzl suggested one such proposal whereby the permeability of the water-bearing rock structure was reduced in the vicinity of the borehole. Although the development of a shut-off method based upon this approach would certainly be welcomed by the oil industry, it is conceivable that, under certain conditions of the pressure gradient, strength of the rock material and depth of the modified permeability zone, a stress field can be created that will result in an unstable hole. As part of their study, an analytical solution is given for stresses in an idealized model of a hole and the surrounding rock material. The purpose of the present study is to extend the analysis of Goodwin and Teplitz to gain more insight into the details and consequences of excessive production rates and formation water shut-off. In particular, simplified models of these problems have been analytically examined, which makes possible the evaluation of the type of stress fields that can be anticipated as a result of these production and drilling practices. Both problems solved concern the determination of the steady-state volume flow rate of the formation fluid and the resulting steady-state stress and displacement distribution in a hollow, cylindrical configuration. The cylinder of Case I, corresponding to the production-rate problem, consists of a material with a constant permeability from the inside surface to the outside surface; the cylinder of Case 11, corresponding to the water shut-off problem, consists of a material with a constant permeability from the inside surface to an intermediate concentric cylindrical surface and a second constant permeability from the intermediate surface to the outside surface-

By David L. Sprott

This paper presents an evaluation of underground-to-surface haulage options for a relatively large deposit. Specifically, it presents a recommended haulage option to provide the greatest value to the Project. Options considered included conventional truck, trolley-truck, conveying and shaft hoisting. The work was done at the level of a preliminary assessment as input to an internal pre-feasibility study. The Base Case for the analysis in this study was a Long Hole Open Stoping option (LHOS) using conventional truck haulage. Two scenarios were considered for the evaluation and included: 1. The current resource to ~700 m depth. 2. An expanded resource to ~825 m depth. The haulage options evaluated included three trucking options, three conveyor options and two shaft options. The paper presents the results from evaluating these options within the two mining scenarios using a Discounted Project Cost (DPC) comparison. Recommendations are made for the options that will provide the greatest overall value to the project.

May 1, 2008

By C. Stansfield Hitchen

THE introduction of the logarithmic sector method of quantitative spectrography by Scheibe and Neuhäusser in 1928, and the subsequent .modification and improvement of the method by Twyman and Simeon, would seem to have marked yet a further advance in quantitative spec-trum analysis and its industrial application, inasmuch as it offers a simple means of eliminating some of the uncertainties inherent in the older methods based upon mere visual comparison of line intensities. In their recent admirable review of the position and capabilities of industrial spectroscopy, Brownsdon and van Someren1 say: Ways and means of facilitating the comparison of line-intensities so as to give them numerical values are helpful, and of these a logarithmic sector rotating in front of the slit appears to he one of the most promising; . . . the success recently experienced by the author in using this method for the examination of steels and solutions of metallic salts prompted him ,to investigate its possible use in estimating the impurities commonly present in crude and refined tin. The results of this investigation are submitted in the present paper. Details of a number of spectrographic analyses of tin for various impurities have already been published. Thus, Schweitzer2 describes the spectrographic examination of tin for lead, bismuth and cadmium, and was able to distinguish between such atomic percentages as 0.01, 0.05, 0.10, 0.30, 0.60, 1.20, 3.00 and 10.00. Negresco3 investigated the bismuth content of tin over a range of from 0.0005 to 35 per cent. Meggers, Kiess and Stimson4 compare spectrographic and chemical analyses of tin metal for copper, lead, iron, zinc, silver, nickel and bismuth. They stress also the value of spectrum analysis in the examination of tin used for boiler plugs, where the requirements that only minute quantities of impurities shall be present render the chemical analysis both tedious and difficult.

Jan 1, 1933

Tumbling mills have been used in the minerals indusu) for occr WO years, with the design changing little, but the size of the individual pieces of equipment increasing significantly with the lowering of head grades, and the push for greater

Jan 1, 1997

By Joseph Winlock, Francis B. Foley, Henry M. Howe

This investigation was undertaken for the purpose of determining, in a systematic way, the effect of the rate of cooling of steels, heated to above the transformation range, on their various mechanical properties. This paper gives the results obtained in the investigation of the heat treatment of carbon steels carried out under the auspices of the Committee on The Heat Treatment of Carbon Steels of the Engineering Division, National Research Council. The objects of this committee, of which Dr. Henry M. Howe was chairman, were to increase knowledge of the influence of heat treatment on the mechanical properties of carbon steel. The mcthod pursued was to subject specimens of steel of the carbon contents most used for engineering work, 0.34 per cent., 0.52 per cent., and 0.75 per cent., to various heat treatments, and to test the mechanical properties thus induced. The steels were the same as were used by the committee on fatigue phenomena. This project was financed jointly by the U. S. Bureaus of Mines and Standards; industries and university laboratories have cooperated. A large part of the work was done at Doctor Howe's private laboratory. The committee consisted of F. B. Foley, H. AT. Boylston, H. C. Boynton, G. K. Burgess, H. J. French, J. H. Hall, Zay Jeffries, R. S. Johnston, F. C. Langenberg, H. F. Moore, E. H. Yeirce, H. S. Rawdon, W. E. Ruder and 11. J. Stagg. The work was undertaken at the suggestion of Doctor Howe, who thought, at the outset, that steel in the sorbitic state might have properties which, for most engineering purposes, would be better than those of the usual or pearlitic state. By a systematic variation in the heating

Jan 1, 1923

By Rodrigo Jerez

Advances in inexpensive computer automation led to the development and use of a computerized ore control system at the Cyprus Copperstone Gold Mine near Parker, AZ. These new ore control practices improved accuracy, performance and productivity of the ore control effort. An automated system for data collection, including bar coding of blasthole samples, laboratory analysis, data management, grade estimation, cut delineation and ore zone stake out, plays a major role in ore control practices. This is of particular interest because of the large amount of blasthole information being processed, analyzed and reported daily. Copperstone Gold management has been progressive toward new, efficient methods regarding ore reserve estimation, long-term mine planning, short-term mine planning, ore control and surveying. Technological advances, including powerful personal computers, applicable mine planning software and surveying instrumentation, have become readily available and affordable. The computerized ore control procedures used at Copperstone include sample data collection, laboratory automation and computerized data management. These have reduced the time to complete ore control on a blast pattern by 50% to 75%. The final product - ore control - is generated in a more timely and accurate manner.

Jan 1, 1991

By E. A. Trager, A. W. McCoy, H. R. Shidel

Sampling of the fluid from oil wells for percentages of oil, emulsified oil, and water during the last two years has brought out some interesting facts concerning oil-water emulsion. This result led to a laboratory investigation of emulsion, which substantiated the conclusions made from the field observations. The purpose of this paper is to present the information collected, the laboratory experiments, and our interpretation of the same. In order to define emulsified .oil exactly, give its synthesis and origin, and to show how and when it is formed in the wells, the work was necessarily divided into two separate lines—laboratory work and field observations. It is hoped that this study may lead to a discussion of such points so that the petroleum engineer, geologist, or technologist may be benefited by its practical bearing on oil-field management. Special credit is due Mr. Everett Carpenter, chief geologist of the Empire Gas & Fuel Co., for his assistance and cooperation in this work. Labobatory Investigations on Emulsified Oil Laboratory investigations were conducted in an attempt to learn the composition and some of the properties of emulsified oil, or B. S., as it is more commonly called, also to demonstrate, by laboratory methods, how B. 5. may be formed under conditions similar to those existing at the time a well is being pumped, and how it may be broken down. Literature bearing on this subject is widely scattered and very limited in scope. Bacon and Hamor define B. S., or bottom settlings, as "earthy matter, inert organic matter, or, in the case of Pennsylvanian petroleum, an emulsion of paraffin wax and water, which accompanies crude oil." In this discussion we will limit the term B. S. to that heavy, dark-brown emulsion, composed of a physical mixture of water, oil, and air with some included inert matter, either organic or inorganic. Possibly the first step in a description of this product should be a description of its physical properties, but since most operators are quite

Jan 1, 1921

By I. Jones

Geologists, engineers, technicians and surveyors have successfully utilized technical software in the mining industry for over 30 years. Software for processing survey, geology, mine engineering and planning information make these functions more efficient by automating repetitive tasks and reducing data processing errors. While these systems have been improved incrementally overtime, new systems that represent giant leaps in technology have been introduced to help mining operations increase productivity and reduce costs. However, their widespread use within the industry has left individual companies without a competitive advantage. Additionally, the ability of these applications to provide the productivity improvements required in today’s uncertain market conditions has since peaked. The next wave of technology—integration of independent software applications—is just starting to emerge and will have a significant effect on the productivity of mining operations. To reap the productivity gains required to remain competitive, mining companies must exploit the collective knowledge and experience of every employee in the organization. Integration of independent software application allows companies to leverage information from all activities, enabling staff to make better decisions to improve productivity. This paper outlines the importance of integration as productivity enabler. Key performance indicators, strategic mine planning, resources management and mine-to-mill integration are discussed as processes that enable productivity. The Gemcom Enterprise Mining System (GEMS)is introduced as the industry’s first integrated solution that enables these productive processes. The paper concludes with a comment on the level of change required to realize the benefits of integration.

Jan 1, 2003

By Wilder D. Foster

In estimating the hazardous qualities of a dusty atmosphere it is frequently desirable to determine the composition of the air-borne dust. Samples collected from ledges or from the rock itself are likely to be unsatisfactory for this purpose owing to the possibilities of differential disintegration of the rock and of variations in settling rates of the different components of the minerals. It may be necessary, therefore, to collect samples of dust from the air. Samples collected from the air may be analyzed chemically, by X-ray diffraction, and by the petrogrephic microscope. Chemical methods are unsatisfactory owing to the small samples usually available and to the limitations and complexities of present methods. X-ray technique requires expensive apparatus not ordinarily available except in research laboratories. Owing to the simplicity and rapidity of petrographic examination of atmospheric mineral dusts, it was considered worthy of further study.

Jan 1, 1938

By L. C. IlsLey

"During the last eight years there has been a noticeable increase in the use of permissible equipment in gassy and dusty coal mines. This trend has undoubtedly been toward greater safety in mining, but in spite of this all is not well ""along the front.""In many mines those in charge, either through ignorance or supposed economy, have neglected to install sufficient copper and maintain good bonding on the rails used for return circuits to have a safe working voltage for the permissible equipment which is intended to afford them safety.Low voltage, when properly analyzed, is not economy but frequently is an expensive oversight. Burned-out armatures, controllers, rheostats, and switches are costly in themselves to repair or replace, but the greatest cost in many instances is the loss of production resulting from idle and broken-down equipment.From a safety standpoint, excessive low voltage where permissible equipment is necessary is almost criminal negligence. A burn-out of any kind is liable to cause an arc that may burn its way through a casing wall and bring about a hazardous condition if gas or dust in explosive proportions should be present. Again, all wiring, both interior and exterior to the apparatus, is subject to the extra heating consequent upon low voltage. It should be remembered that if the voltage drops the current must increase a corresponding amount in order that the same work may be accomplished; and as the heating effect is as the square of the current, an enormous overheating of the electrical parts and wiring often takes place. This heating effect is especially detrimental to trailing cables used on portable equipment, because under the most favorable conditions the size of cable selected is only barely sufficient to do its work properly at a safe working temperature; therefore, when the extra current load is added because of poor voltage, overheating is sure to result, with consequent deterioration of the insulation, This effect greatly increases the liability of cable failures in service, and in turn adds to the hazards incident to the use of portable equipment of the permissible type involving the use of trailing cables.Some manufacturers have tried -to protect their equipment from low voltage, especially below a certain point, by -installing low-voltage relays which will trip when the voltage falls to a predetermined value. It is understood that some operators have hesitated or refused to install such low-voltage protection because they were aware that the voltage conditions were so poor that the equipment could not operate under the safe limits set. It is difficult to understand how any progressive company that is willing to go to the ex-pense of installing permissible equipment could be so shortsighted in this phase of common sense, safety, and economy."

Dec 1, 1929

By Joseph C. Milbourne

Tetra Technologies CCIX? (continuous countercurrent ion exchange) system has been involved in a wide range of uranium concentration, separation and purification applications over the past 40 years. Uranium ion exchange applications have ranged from the treatment of copper heap leach solution containing 5 parts per million of uranium to the treatment of high strength sulfuric acid solutions containing several thousand parts per million of uranium. The flexibility and the countercurrent mode of operation and other unique features of the CCIX? have resulted in successful uranium recovery from these solutions and many others.

Jan 1, 1995

By C J. Kruger, E le Roux

Anglo American Platinum has adopted a strategy of Best Practice Principles (BPP) for sampling, mass measurement, analysis and metal accounting for more than a decade now. When new plants are designed, the most suitable sampling equipment and sampling protocols are implemented and material flows and plant layouts are designed around sampling strategies. A few years ago, a crushing plant for a high-grade matte stream was commissioned.The design called for the high-grade material to be crushed to 95 per cent passing 2 mm and the design allowed for a single cutter primary Vezin sampler, increments taken from a gravity flowing stream at regular intervals, whilst filling a tanker for the pneumatic offload at our base metal refinery. This was a single point of sampling and analysis that would measure the wanted output from our smelting complex and the input to our refineries. In addition, the design incorporated the functionality to collect increments in an ‘interleaved’ fashion from the Vezin sampler for internal precision checks.The metal accounting strategy for Anglo Platinum is the ongoing measurement of all inputs, outputs and stock levels for all our operations for platinum group metal (PGM) and base metal (BM) content. Included are yearly stocktakes, usually done on 1 February every year, across the smelters and refineries (at least the base metal refinery). A trend was developing in the accounting period immediately following the introduction of the new crushing and sampling facility, whereby the absolute difference between the physical stock and theoretical stock (PGMs predominantly) increased for the two respective sites on an ongoing basis. The smelter (sender) showed an increase in physical stock compared to the theoretical stock and the base metal refinery (receiver) showed that their theoretical stock increased against their physical stock. Because of this anomaly, an additional stocktake was held in September for the period in question and it was confirmed through the physical stock measurement results, that the PGM accounting problem was indeed pointing towards the evaluation of the high-grade matte stream.This paper showcases parts of the process that took place to explain the poor accountabilities for the respective sites. Previous results from the sampler ratification process (of the interleaved sampling design) were analysed again, a physical inspection was carried out on the sampling system again and the sampler performance was monitored (quality control parameters) for the period.From these investigations, it was found that airflows present inside the Vezin introduced the sampling bias and a change in sampling protocol was introduced as well as physical changes to the sampling equipment were made to eliminate the airflow and thus the bias conditions significantly. The accounting period which followed, after a phased upgrading process, showed that the accounting between our smelter and base metal refinery had been restored to within statistical limits (difference between physical and theoretical stock below five per cent relative to theoretical stock).CITATION:Kruger, C J and le Roux, E, 2017. Pitfalls in Vezin sampling for finely crushed materials, in Proceedings Eighth World Conference on Sampling and Blending , pp 151–158 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 9, 2017

By H. W. Schreiber, G. R. Castle

INTRODUCTION The small mining company faces the dilemma of how to finance the development of its properties. Many of these small companies don't have the financial resources to pay for development costs from their own funds and frequently they do not even have the financial strength to permit them to borrow the money needed for development. A project financing can sometimes be arranged in such a way as to solve this dilemma. A typical project financing will not provide the answer to the "little guy's" problem because most project financings require that the sponsors of the project provide completion undertakings and sometimes other undertakings. These undertakings are often a prerequisite to obtaining financing, and if the sponsor is not financially strong enough to provide the comfort that the lenders require, then the sponsor will have difficulty obtaining financing no matter what undertakings are offered. However, with a little imagination and the right set of circumstances, a project financing can sometimes provide the solution to the small mining company's problem. The Strathcona Sound Project is unusually suited as a case study because the sponsor, Mineral Resources International Limited,(MRI) was able to arrange a project financing for the development of the project even though the lenders probably would not have been willing to loan a similar amount of money direct to MRI based on the full faith and credit of MRI's balance sheet. The way that MRI was able to arrange this financing makes for an interesting story. THE CASE In early 1974, MRI owned 100% of a small to medium sized zinc - lead - silver massive sulfide deposit (Property) located 475 miles north of the Arctic Circle less than two miles from deep water on Strathcona Sound which is a shipping zone in the Canadian Arctic. The Property was situated at a desolate location except for an Eskimo settlement (Arctic Bay) which was about 20 miles west of the Property. In other words, the project required that complete infrastructure would need to be installed in this far northern location. Independent reserve and feasibility studies (Study) had been completed on the Property which confirmed a total of 6,825,000 tons of reserves classified and summarized as shown below on Table I: [ ] These reserves were based on 229 diamond drill holes totalling 58,909 feet and were established on a cut-off grade of 7% zinc and a minimum mining height of seven feet. The overall mining recovery rate was estimated at not less than 85% and not more than 90%. The feasibility study indicated that it would cost an estimated $45,044,000 to develop an underground mine, a concentrator, a town-site, a power plant, storage facility, loading dock, a tailings disposal area and an airstrip on the Property with an annual capacity of 525,000 tons of ore per year. The construction period was expected to take two years and projected capital costs were broken down as set forth below on Table II:

Jan 1, 1985