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By Ed Beswick

Resource Update Drilling Program ? Pre-feasibility ? Exploration Metallurgy Program ? Grindability ? Metallurgical Optimization ? Hydrometallurgical Options Preliminary Mine Development Design Environmental Permitting Infrastructure Development

May 1, 2008

By R. S. Simkus, J. R. Egan

"Changes have recently been applied to the Sullivan Concentrator lead and zinc circuits to treat fine-grained ores which make-up the majority of ore reserves in the mine. Pilot plant test work conducted in 1990-91 indicated that concentrate grades would be substantially improved by reducing the particle size (P,0) of the lead from 38 to 15 µm and the zinc from 45 to 24 µm.Circuit revisions involved installation of major new equipment including: two GUO kilowatt Vertimills for regrinding, a 4 metre diameter column flotation cell and a 4 metre diameter hyperbaric pressure filter for dewatering. Duties of the existing regrind mills were reassigned.IntroductionThe Sullivan ore body is a massive sulphide deposit consisting of fine grained mixtures of sulphides, sometimes inter-banded with country rock and varying widely in their content of lead, zinc, iron and silicates. Principal economic minerals are marmatite and galena. Iron is mainly present as pyrrhotite (85%), and to a lesser extent as pyrite (15%) .The orebody has been actively mined since 1923, with 1992 ore reserves estimated at 15,800,000 tonnes with an average grade of 4. 7% lead and 7. 9% zinc. Current plans call for treatment of 1,600,000 tonnes/year, (7,000 tonnes per operating day), with flotation feed grades of 5.9% lead, 10.1% zinc, and 22.0% iron."

Jan 1, 1994

By Cameron J. Clayton

Cumberland Resources Ltd. is currently planning to develop the Meadowbank Gold Project located some 70 km north of Baker Lake, Nunavut in the eastern Canadian Arctic region. The Meadowbank Gold Project currently consists of up to 6 main gold bearing deposits within relatively close proximity to one another which are planned to be mined primarily as a truck-and-shovel open pit operation and using conventional gold milling and extraction. The mining plan indicates that approximately 20 million tonnes of ore will be mined over a mine life of 8 to 10 years. The operation will generate approximately 160 million tonnes of mine waste rock and about 20 million tonnes of tailings. The site is located in an area of continuous permafrost with mean annual average air temperature of -11 °C and average annual precipitation in the range of 100 to 200 mm. Lakes cover a large portion of the site, including some of the ore deposits. The location of the site, and the physical environment, pose challenges to development. This paper presents some of the designs considered to effectively manage and utilize the waste products of mining at the project.

May 1, 2004

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 Dayang Datu Khalil, Charle Amoah, Fred Kock

Abosso Goldfields Limited has been optimizing the comminution circuit at the Damang Mine Operation for the treatment of 100% primary ore. The optimization process started at a base rate of 343 tph when treating primary crushed primary ore, and was increased to above 600 tph with partially crushed primary ore. Abosso Goldfields engaged Orway Mineral Consultants (OMC) to assist with the optimization process in 2009 and the two companies have been working together since, to further refine the process. Continuous improvement was achieved through crushing circuit modifications, changes in operating processes and grinding control system utilization. This paper discusses the improvements developed for the increase in milling capacity and improvements in final product size.

Jan 1, 2012

By Paul Hughes

This paper summarizes current underhand paste backfill mining as applied to Goldcorp Inc?s Red Lake Mine, Newcrest Mining Ltd?s Kencana Mine and the Lanfranchi Nickel Mine as well as ongoing research at the University of British Columbia?s Norman B. Keevil Institute of Mining Engineering. The Red Lake Mine utilises a 6 m wide undercut with a 2 MPa unconfined strength paste in order to selectively mine its high grade, high-stress orebody. Kencana?s orebody is located in a poor rock mass environment. An 8 m wide, 2 MPa unconfined strength paste sill allows a safe working condition for its high grade orebody. The Lanfranchi Nickel Mine utilises a cable-supported, 2 MPa paste, with 12 m span sills, to optimize the mining of the squeezing rock mass. This paper details the rock mechanic hazards, ground support techniques, paste practices and unique conditions for each mine. Further, an update of ongoing research at the University of British Columbia, focussing on the optimization of safe mining in underhand cut-and-fill mining in high-stress/weak rock masses, is presented.

May 1, 2011

By D. J. Hallbom

This paper presents a novel methodology for the hydraulic design of mine backfill distribution systems. The ?operating range? method uses the concepts of the hydraulic grade line and equivalent pipe length to determine flows and pressures as the pipeline route and static head change over the life of the mine. The operating range method is easy to learn because it is semi-graphical and uses well-known design concepts (e.g., the hydraulic grade line) and slurry design models (e.g., the Durand deposition velocity model). However, by changing the paradigm in which these concepts are used, the operating method allows all potential pipeline cases to be analysed simultaneously without the need to know the exact pipe routing. It also allows the hydraulics engineer to quickly identify ?pinch points? and ?slack flow? zones, to estimate the effect of changing the size or length of any given section of pipe, to assess the impact of changing the material properties of the backfill slurry, to size the slurry pumps, and to size and locate rupture discs when required.

May 1, 2007

By A. E. Taylor, A. S. Judge, P. T. Lafleche

"Resource development in northern Canada has special requirements which derive from the unique environmental and eco-logical nature of the northern environment. In this paper several case histories in which the Permafrost Research Section of the Geological Survey of Canada (GSC) has participated are used to illustrate how geophysical methods may be used to address some of these considerations. Although some of these examples were developed while examining problems directly related to oil and gas development and transport in frontier regions, such or similar methods also have application to mining problems.IntroductionA critical parameter is the distribution and thickness of permafrost, which in northern Canada varies from being a few metres and discontinuous at the southern limit to thicknesses in excess of 700 m in the Arctic Islands'!'. Figure I is a schematic diagram of typical ground thermal conditions in a permafrost zone. The upper zone is defined by an active layer which undergoes a seasonal freeze/thaw cycle. In the simplest case, the ground remains permanently frozen below the active layer to the depth of the O°C isotherm, which is defined as the base of the permafrost. Water chemistry, pore structure and pore or grain size may cause the base of the frozen ground to be above the permafrost by up to 100 m(2). Ice can be found within the permafrost in the pores of solid rock or sediments, as massive ice within unconsolidated sediments or as ice lenses within fissures in a solid rock mass. The mining technique used in these conditions, whether open pit or underground, can differ considerably from that used in southern Canada. In the high Arctic, for instance, the dry drift method is feasible underground in the permanently frozen host rock. The frozen nature of the wall rocks can obviate water-related problems."

Jan 1, 1987

By Heikki Laurila, Sirkka-Liisa Jämsä-Jounela, Jarkko Karesvuori

"Artificial Intelligence includes excellent tools for the control and supervision of industrial processes. Several thousand industrial applications have been reported worldwide. Recently, the designers of the A1 systems have begun to hybridize the intelligent techniques, expert systems, fuzzy logic and neural networks, to enhance the capability of the A1 systems. Expert systems have proved to be ideal candidates especially for the control of mineral processes.As successful case projects, an expert system based on on-line classification of the feed type using neural data analysis is described in this paper. The essential feature of this expert system is the classification of different feed types and their distinct control strategies at the plant. In addition to the classification, the expert system has a database containing information about how to handle the determined feed type. This self-leaming database scans historical process data to suggest the best treatment for the ore type under processing. The system has been tested in the Outokumpu Finnmines Oy, Hitura mine. Other projects have been reported to be in progress.INTRODUCTIONIn the past ten years considerable researches have been done in the application of artificial intelligent methods in process industry. The technologies of fuzzy logic, neural networks and expert systems have received several thousand applications worldwide: monitoring and analysis of process operations, fault diagnosis, supervisory control, feedback control and scheduling and planning of operations. Recently, the designers of these systems have begun to hybridize these intelligent techniques to enhance the current capability of expert system. Complex signal processing, neural networks, fuzzy logic and rule-based systems are also implemented to develop new so-called smart or intelligent sensors, actuators or components. Field buses are playing a more and more important role in automation systems and in imbedded systems. The development of field buses has allowed the distribution of smart components over networks."

Jan 1, 2000

By Christopher W. Corti

A major aim of the GOLD 2003 conference, is to promote new gold related science and technology with a view to developing new useful industrial applications for gold. Current industrial uses have provided a steady annual industrial demand for gold of around 350-400 tonnes in recent years, the bulk of which is centred on electronics applications, with dental uses constituting the second largest application. However, there is good reason to believe that whilst gold will continue to play a major role in these sectors in the future, substantial growth of demand is not anticipated. Increased industrial demand for gold is only likely to come through the emergence of new applications, probably most significantly in five broad market sectors: ? Pollution and emission control technologies, including fuel cells. ? New uses for gold in advanced electronics, electrical systems and devices. ? Chemical processing of a range of bulk and speciality chemicals, using gold based catalysts ? Advanced coatings exploiting the novel properties of gold, particularly in nanoparticulate form. ? New biomedical uses for gold including medical treatments, drugs, implants, sensors and devices. There is cause for optimism that many new applications for gold could emerge in these sectors over the next decade and that this will lead to a substantial growth in demand for gold. It is clear that many of these new opportunities will be based on a chemical approach to synthesis of useful products rather than what has historically been a materials or mechanical approach. To turn this expectation into reality requires sustained support of R & D and a determination to exploit this new science and technology into viable commercial applications.

Oct 1, 2003

By G. Simard, M. J. Gagnon, A. Charette, G. Péloquin

"In the Bayer process, flocculants are introduced in the feed well to enhance the aggregation of red mud particles. To gain a better understanding of the flocculation process taking place in the feed well, shearinduced flocculation was achieved using concentric rotating cylinders (Couette system). Our previous work has shown the effect of the shear rate on the aggregate’s settling rate and on residual turbidity of the Bayer liquor. In this study, the data demonstrated that the aggregates at selected shear levels appear as a population with a widespread size distribution. By using an imagery apparatus, it was possible to measure the size, the shape, and the sedimentation velocity of the larger red mud aggregates. Marked differences were noticed in the characteristics of the aggregate populations obtained under various shear conditions. IntroductionIn the Bayer process, red mud particles are separated from the liquor in primary clarifiers and washing circuits under the action of synthetic polymers. The agitation in the feed pipe and in the feed well affects the flocculation since the aggregates are formed by the interaction between the red mud particles and the polymers. A minimum shear rate is needed to initiate the aggregation process of fine particles (Warren, 1975).Different systems have been used to study the effects of shear on the flocculation process (Tampo and Watanabe, 1979; Klimpel and Hogg, 1986; Scott et al., 1996; Biggs and Lant, 2000). The Couette flow system has been used in some studies on shear-flocculation (Oles, 1992; Farrow and Swift, 1996a, 1996b). The importance of the physical properties of the aggregates in determining the efficiency of the solid-liquid separation process within a given gravity thickener has been demonstrated (Farrow and Warren, 1989a)"

Jan 1, 2002

By D. F. Strong, P. P. O'Neill

"The Isle aux Morts Prospect is the first polymetallic, sulphide mineralization reported from the Port aux Basques Complex of southwest Newfoundland. Zn-Pb-Cu-Ba-Ag mineralization hosted by quartz-muscovite semipelite, occurs at the contact between a quartz of eldspathic unit and pelitic unit with intercalated amphibolite are minerals comprise sphalerite-galenachalcopyrite, in order of decreasing abundance. The principal gangue minerals are quartz, muscovite, feldspar and barite. Three morphologic types of mineralization are present: massive with more than 50% sulphide, flanked on one or both sides by disseminated and/or banded types. The massive type of mineralization exhibits a :durchbewegung"" fabric of rounded silicate fragments in a sulphide matrix, characteristic of intensely deformed and metamorphosed sulphide bodies. Sulphide minerals have been mobilized and recrystallized and share the same metamorphic and deformational history as the host rocks. Quartz muscovite schist which hosts disseminated mineralization, displays a K2O enrichment and Na2O depletion, that is typical of alteration associated with sulphide bodies in volcano sedimentary sequences. Isotopic ratios of sulphur are comparable to those of volcanogenic massive sulphide deposits.Despite penetrative deformation and metamorphic recrystallization, features of the local geology and the mineralization suggest that the Isle aux Morts Prospect is volcanogenic in origin. IntroductionFollowing the release of a government lake sediment survey (Butler and Davenport, 1980), which indicated anomalous concentrations of metals in southwest Newfoundland, geologists with Utah Mines Ltd. discovered the Isle aux Morts Prospect, a Zn-Pb-Cu-Ba-Ag showing, located approximately 15 km northeast of Port aux Basques (Figs. I and 2). The mineralization occurs in quartz-muscovite schist and is the first significant basemetal discovery in the Port aux Basques Complex."

Jan 1, 1988

By Euler De Souza

Backfilling in Canadian mines has been practised for close to 100 years and evidence anticipates the application of mine fill technology at an increasing rate during the foreseeable future. The evolution of backfill technology is closely related to the advancement of modern mining methods and the development of new backfill technology continues to evolve. The authors, after conducting extensive surveys of backfill practices in underground mines across Canada, have concluded that, because backfill operations employ large quantities of cement and experience large costs associated both with backfilling practice and cement use, opportunities exist for reducing backfill energy costs and enhancing the application of alternative cementing agents in backfill. Consequently, the authors have developed an alternate, equally effective and lower cost binder agent replacement for cement, and incorporated waste glass into the development of a lower cost backfill (glassfill). This paper presents the results of two design stages associated with the development of glassfill: strength development and flow performance. The advancement of this technology has reached a stage that should promote industrial implementation within the Canadian mining industry. A number of Canadian mining operations exhibit potential for plant optimization through possible binder source replacement, and might thus realize associated reductions in backfill and energy costs.

Apr 1, 2005

By K. Schrijver, G. Beaudoin

"Four occurrences of galena-cemented sandstones, exposed in the Lower St. Lawrence - Gaspésie area, are described. They constitute a new, insufficiently explored type of deposit in Quebec.One mineralized body, a minor occurrence, is hosted in Lower Devonian rocks deposited in an estuarine, intertidal river channel during a marine regression; major cements are dolomite and sulphides. Another occurrence, a drilled prospect, is hosted in Upper Silurian rocks deposited unconformably on Cambro Ordovician basement during a marine transgression. With galena and quartz as main cementing minerals, it is similar to some well-known, economic sandstone-lead deposits. A third and fourth, a drilled prospect and a minor occurrence, are hosted in Upper Cambrian rocks deposited on continental slopes. In both, sulphides mainly occupy a secondary porosity. The differences between the third and fourth occurrences are: (1) cementing translucent minerals (carbonates and barite in one; chlorite in the other); (2) chronology of final subsurface dissolution (prior and subsequent to sulphide precipitation, respectively); and (3) important fracture porosity only in the barite-bearing deposit.The diversity of the four occurrences, and the unequal geological knowledge of their respective features, prohibit the formulation of uniform guidelines for further exploration.IntroductionThe attention of the mineral exploration community is drawn to four occurrences of galena-cemented sandstones (Fig. 2A) in the Cambrian of the Taconian Orogen and in the Siluro-Devonian basin of the Lower St. Lawrence and Gaspésie area (Fig. 1). In view of the fact that sandstone-lead deposits (Bjerlykke and Sangster, 1981) are, or have been, mined in several countries (e.g . Laisvall in Sweden: see Rickard et al., 1979; Largentiere in France: see Foglierini et al., 1980), the mere presence of occurrences in Quebec indicates that the mineral potential of some parts of the Appalachians requires further evaluation.Exploration for the deposits considered here is essentially restricted to geological methods and drilJing (e.g . Mainguet Suares and Samama, 1969), since the response to geophysical methods is virtually nil, at least in the initial, surficial stage of an exploration program. As the particular disciplines of geology utilized in exploration depend a great deal on the geological setting of a mineral occurrence, the diversity of the Quebec deposits is of prime importance. Therefore, the four occurrences (Fig. I, Table 1) studied by the authors are herein briefly described with emphasis on their stratigraphic and tectonic setting, and on the evolution of pore space and sequential occlusion of pores and fractures. Prior to further research in and around the occurrences, now in progress (e.g. Beaudoin, 1987; Beaudoin et al., 1987), it is hoped that the following outline will be useful to the explorationist."

Jan 1, 1987

By K. S. Kalenchuk

Massive landslides display complex deformation processes. For instance, slope movements of the Downie Slide, monitored using borehole inclinometers, extensometers, and survey monuments, show considerable spatial and temporal inconsistencies in the displacement rates. This study assesses the influence that inferred shear surface geometry, as a key factor contributing to variable slope movements, has on resolving spatially discriminated slope deformations in three-dimensions. Borehole data defines the shear surface location at discrete points within the slide and therefore, the shear surface geometry for the extent of the slide must be largely inferred. A series of three-dimensional numerical simulations have been run to assess the effect of different interpretations of the shear surface geometry. This investigation illustrates the importance of rigorous geospatial definition of slip surface geometry and the value of three dimensional modelling.

May 1, 2009

By Hannu J. Häkkinen

Metal clusters exhibit unique size-dependent physical and chemical properties that differ from those of bulk materials or large particles. Here we discuss recent theoretical investigations of the catalytic properties of free and MgO-supported gold clusters. The catalytic activity of gold clusters depends sensitively on the environment, charge state, and chemical composition of the catalyst. Relativistic bonding effects stabilize large planar structures for gas-phase gold clusters, and non-compact ?quasiplanar? structures are present as important isomers also for surface-supported clusters. The hybridization of the atomic 5d and 6s states is significantly enhanced by the relativistic effects, and large spatial variations in the nature of the local electronic structure make the low-coordinated gold atoms preferable adsorption sites for oxygen molecules. The adsorbed oxygen molecules are activated to superoxo- and peroxo-states via charge-transfer from gold, and Eley-Rideal and Langmuir-Hinshelwood reactions with CO proceed via low-barrier formation of intermediates, which do not require O-O dissociation as precursors. This facilitates the low-temperature (below 300 K) activity of gold nanocatalysts in CO oxidation. Other gold nanostructures, such as mono-atomic gold nanowires, may also become important prototype systems in chemical sensing and nanocatalysis; here we show that they are active promoters of hydrogen dissociation.

Oct 1, 2003

By Filipe Beretta

This study investigates geophysical logging capacity to predict coal quality. It was analyzed for possible correlation, some parameters determined via laboratory analysis of coal against results for the same parameter derived from wireline logs recorded by a geophysical probe. These probes detect variations in some rock physical properties, such as their natural gamma ray emissions and electrical resistivity. Results showed a strong correlation between natural gamma and ash content, establishing a linear model to estimate ash content from geophysical logging data with a low estimation error (less than 5%). Besides, results showed that there is no correlation between sulphur content or volatile matter and resistivity, neither with natural gamma of the rocks. Ash content derived from gamma ray values can be used as secondary information to evaluate coal quality during resources estimation, using methods such as soft indicator kriging. The methodology is illustrated using a case study at a coal deposit in south of Brazil.

Oct 1, 2009

By Julie Culverhouse, Dennis Grimm, Kieran Harding, Jean-Francois Boulanger

"Agrium’s Canadian Phosphate Business (CPB) is comprised of Kapuskasing Phosphate Operations (KPO) in Northern Ontario, Canada’s only operating phosphate mine, and Redwater Phosphate Operations (RPO) in Alberta, which manufactures the fertilizer from KPO’s concentrate.Production from KPO’s South Pit commenced in 2009 and introduced contaminant problems: high aluminium from crandallite and kaolinite clays. These issues caused a drastic decrease in P2O5 recovery and throughput in both plants. KPO attempted to reduce Al clays by means of aggressive desliming. Meanwhile RPO experienced high amounts of dissolved metals in their feed that are detrimental to fertilizer production.This paper covers the mineralogy of the problem, its impact on contaminant separation at KPO, on RPO’s process and on Agrium’s Canadian Phosphate Business as a whole.Potential solutions to the problem are discussed and analysed, including a process change to deslime high aluminium streams more aggressively and high grade ore flotation, which is atypical at KPO. The latter is a demonstration of the value of communication between the concentrator and the client, as KPO accepted a recovery loss and increased production costs in order to increase overall CPB profits. General lessons learned are discussed, followed by a section on ore blending.INTRODUCTIONAlthough the existence of the Kapuskasing phosphate deposit has been known since the 1970s, it’s only since 1999 that Agrium has been operating the Kapuskasing Phosphate Operations (KPO). The mine consists of three major pits (Center, North and South) from which a mining contractor hauls the apatite ore to the Agrium concentrator. The beneficiation plant processes the ore, separating contaminants such as Fe, Mg and Al which are detrimental to its client, Agrium’s Redwater Phosphate Operations (RPO). The KPO concentrate is finally thickened, filtered and dried before being shipped by rail to RPO.At the Redwater plant, the KPO concentrate is added to a sulfuric acid solution in an attack tank, to create a phosphoric acid solution and gypsum:"

Jan 1, 2011

By Christoph Mueller

Mining operations today are characterized by a high degree of mechanization and single machine automation. However, their potential for cost cuttings and increase of productivity in the future is quite limited. Enabled by newest IT and networking technology, the operation of underground mines more and more can be seen from a process related point of view: Standardized Ethernet and Wireless LAN are the basis for a seamless and unified communication backbones providing an integrated infrastructure for data, telephony and video. All the components are available as off-the-shelf devices leading to an excellent cost efficiency. Basing on this standardized infrastructure, the equipment is able to become part of the infrastructure. To enable machines to be integrated smoothly into IT networks, the machine also has to have enhanced networking capabilities. This results in a new system architecture for the on board machine electronics separating real time control from IT and networking level functionality which can be implemented by a Machine Server. This machine server communicates with all kinds of above ground systems using mainly standardized formats like html or the IREDES standard. This information is made available mainly in 3D mine visualization tools. The paper explains this technology and shows implementations by two working examples.

May 1, 2006

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