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By Robert B. Parsons

"A joint federal/provincial/industry subcommittee of the Intergovernmental Working Group on the Mineral Industry (IOWG) has published an informative and readable report on taxation matters concerning Canada's mining industry. The report, which was presented to the federal and provincial mines ministers in September 1986, identifies and discusses key tax issues relating to this industry. The report is mandatory reading for anybody with an interest in mineral exploration or production in Canada.IntroductionIn 1986, Canada's federal and provincial mines ministers were presented with an important report concerning the taxation of this country's mining industry. This document is important for a number of reasons, two of the reasons being: first, the report contains an objective analysis of the key mineral taxation issues of the day; and, second, the report is the product of a cooperative exercise involving representatives of various facets of the industry and government. The report should be regarded as compulsory reading for anybody who has an interest in fiscal matters affecting mineral exploration and production.The ""Report on Fiscal Proposals"" was prepared by a subcommittee of the Intergovernmental Working Group on the Mineral Industry (IOWO). IOWO is a group of senior federal, provincial, and territorial government officials concerned with the analysis of mineral policy issues in Canada."

Jan 1, 1986

By G. F. Miller

ONLY IN THE Province of Saskatchewan is natural sodium sulphate found in Canada in amounts large enough to make recovery economically sound. Geologists have estimated that the numerous deposits within the Province contain upwards of 200 million tons of Glauber's salt. There are twenty-one deposits in the Province which contain 500,-000 or more tons and about two dozen with lesser amounts. The first recorded production of sodium sulphate in Saskatchewan was in 1918. The company concerned, and others that attempted to develop the industry in its early stages, were unsuccessful. Their failures were caused by two main factors -lack of knowledge of efficient operating methods and the unstable market situation for the finished product. Today, the situation is changed in both respects and the product, commonly referred to as 'saltcake", is a very important chemical requirement of many industries throughout the world. Before proceeding with remarks on manufacturing methods it should be stated that, although this is a general paper on the manufacturing methods and end uses of the saltcake produced in the Province, the writer is, of course, more familiar with the plants operated by Saskatchewan Minerals than with other operations and perhaps may be excused for dealing more particularly with the plants of that Compa11y.

Jan 1, 1958

By Y. L. Mehta

The working experience of the Zinc Smelter, Debari, Udaipur with process modifications and iron control practices is described in detail in this paper. Most of the modifications were made at different times as part of capacity enhancement campaigns that led to distinct advantages, thereby increasing both zinc production and recoveries. This smelter came into existence in 1968 with a humble beginning of producing 18,000 metric tonnes (MT) of zinc per annum, using the conventional batch hydrometallurgical roast-leach-electrowinning technology. Zinc production capacity was increased stepwise to 45,000 MT, 49,000 MT and 59,000 MT, by making suitable process modifications and adopting new technologies, particularly in the leaching section. During these modifications, the process of iron separation as Moore cake was also changed to jarosite cake production. At present, jarosite is being disposed in a secured landfill at the Zinc Smelter, Debari (ZSD) and as Jarofix at the Chanderiya Lead Zinc Smelter (CLZS). As a result of subsequent in-house performance improvement and debottlenecking campaigns, this smelter could achieve further increases in production. Zinc production for the financial year 2005-06 was 81,000 MT.

Jan 1, 2006

By P. Dinham, G. C. Summerton, N. McCulloch, S. Dowling, D. C. Craig

"Development of a process for the treatment of a nickel copper matte rich in the minerals heazlewoodite, chalcocite and bornite has demonstrated significant base metal recoveries and metal separation efficiencies. The determination of chemical and mineralogical changes occurring in the individual leaching stages in laboratory experiments has enabled a better understanding of the complex leaching chemistry. The chemistry and mineralogy of the piloting and laboratory processes are discussed.INTRODUCTIONThe nickel-copper sulfide ores of the South African Bushveld Complex are among the most important Platinum Group Metal (PGM) bearing ores, and contain the world’s largest reserves of platinum. The treatment used in the recovery of PGMs from these ores includes three types of processes, namely ore concentration using physical techniques such as flotation and gravity separation, concentration by pyrometallurgical means, hydrometallurgical extraction of the base metals followed by the PGMs. Following milling of the ore, flotation involves the separation of high value minerals from gangue by taking advantage of the differences in their hydrophobicity. These differences are generally maximized through the use of a surfactant or wetting agent. Concentrates are then thermally treated and melted which brings about physical and chemical changes that enable the recovery of base metals and PGMs. The main aim of the smelting and converting process is to separate and eliminate the valuable metals from the bulk of the unwanted gangue and essentially all of the iron and to concentrate the metal VALUES (into a high grade converter matte. The matte can be further enriched by magnetic separation, producing a PGM-rich magnetic fraction and a base metal-rich non-magnetic fraction. The magnetic fraction is treated by hydrometallurgical processes to produce a PGM concentrate which is further refined to separate and purify the individual metals. The non-magnetic fraction is treated to produce marketable metal VALUES (such as nickel, copper, cobalt and to a lesser extent PGMs. The principal objective of any hydrometallurgical extractive process is to leach the desired elements selectively into an aqueous phase so as to separate them from the bulk of the material. (Crundwell, Moats, Ramachandran, Robinson and Davenport, 2011; Hundermark, Mncwango, de Villiers and Nelson, 2011)."

Jan 1, 2012

By L. M. Pidgeon

MAGNESIUM metal, with a specific gravity of 1.73, is two-thirds the weight of aluminium and one-quarter that of steel. It is the lightest metal which is stable in the atmosphere. Before the war it had begun, though somewhat slowly, to take a place among the established metals. In 1939, magnesium production on this continent amounted to some 3,000 tons per annum and was confined to one company. At that time, Germany produced perhaps 20,000 tons. The advent of war, however, increased the demand to fantastic heights and introduced production problems of unprecedented magnitude. By the end of 1943, North American production is expected to reach 300,000 tons per annum (1), an increase of one hundredfold. Such a rate of expansion has not been witnessed previously in the history of metallurgy. It has given the metallurgist an opportunity to try new production methods and to learn in a short time what might otherwise have taken many years. The metallurgy of magnesium is still in its formative years and at this time widely different production methods are in operation side by side. This paper will discuss these methods in so far as information is available for publication at this time. A general description of the new Canadian industry will be included.

Jan 1, 1944

By Richard R. Walker, John J. Watkins, Allen C. Amos, Matulich. Angelo

THE KIDD CREEK MINE is located within the Abitibi greenstone belt, near its west end, in an area known as the Porcupine mining camp (Fig. 5). The Abitibi belt, long known for its many major gold and base metal deposits, is the largest Archean (early Precambrian) greenstone belt within the Canadian Shield. In the Porcupine area, the greenstone belt is composed principally of Keewatin (older Archean) basic to intermediate volcanics, with subordinate felsic volcanics developed• locally. Greywacke, mainly of volcanic derivation, occurs associated with and overlying these volcanics. Timiskaming (younger Archean) sediments, principally coarse clastics, unconformably overlie the Keewatin volcanics and sediments. The reader is referred to Goodwin and Ridler (1970) •r. for a more comprehensive description of the Abitibi belt.

Jan 1, 1974

By William B. Coker, Vladimir J. Sopuck, J. S. Fox

"Preliminary investigations indicate that organic lake sediments offer some potential for gold exploration within the Canadian Shield of northwestern Saskatchewan. It is also apparent that certain precautions must be taken.Gold is primarily related to the organic fraction of the lake sediments, which, although giving consistant Au contents to those sediments, may restrict the dispersion of Au within the lake itself. It may be necessary to carry out selective extractions on the lake sediments to differentiate between Au related to organic sequestration, indicative of hydromorphic and/ or chemical dispersion, and Au related to inorganics, indicative of mechanical dispersion.Lake sediments are probably only of use for very detailed exploration (i.e. every lake). One to three samples per lake should be appropriate, although a single centre-lake organic-rich sediment sample may be adequate in very small lakes. Each lake sediment sample should be analyzed at least twice and the analytical data carefully monitored and evaluated.The use of As in lake sediments as a pathfinder element for gold is applicable in the search for certain types of gold occurrences.Following detailed lake sediment sampling, basal till sampling can possibly be used to localize areas of potential gold with or without base metal mineralization."

Jan 1, 1982

By W. A. D. Edwards

"The Edmonton region accounted for 40% of Alberta's sand and gravel production in 1981 (about 12 million m3). Most of this production was by commercial operations (75%) for use in essential public works projects (64% in road and asphalt production).Although the Alberta Geological Survey delineated 1157 million m3 of gravel, a number of areas are considered to be in short supply. An econometric model was used for forecast demand in the region. Predictions, based on this forecast and estimated supply, are that 15% of the region's gravel and 3% of the sand will be consumed by the year 2010.The City of Edmonton is the largest consumer of aggregate in the region. Approximately 40% of the gravel in Edmonton's current supply area (about 55 km radius) will be used by 2010. These estimates are considered optimistic because the supply figures do not account for sterilization of deposits - some has already taken place in the region. If 25% to 50% of Edmonton's current supplies (one major deposit) were sterilized it would result in $1,000 million of additional cost due to increased haulage alone.Information on the value of aggregate resources, the location of sand and gravel deposit s and forecast demand has been made available to all municipalities in the region to aid planners and regulators in effective future use of this important resource.INTRODUCTIONAlberta is the second largest producer of sand and gravel in Canada at ab out 50 million tonnes annually. Value of provincial production exceeded $120 million in 1985. In Albert a, aggregate is used primarily in road and building construction (about 50% and 15%, respectively) and is important in such activities as petroleum exploration, oil sands development and the forestry industry.The Edmonton region (Fig. I) accounts for about 40% of provincial production and has a per capita consumption rate of about 13.4 m3 of sand and gravel per annum. Although Edmonton dominates, with approximately 50% of regional production going into the city, aggregate is produced in every county and municipal district in the region.Sand and gravel is essential to the current way of life in the Edmonton region. The resource is valuable and dwindling. The Alberta Geological Survey (a department of the Alberta Research Council) has collected information on aggregate in this region for the last decade which ca n aid government planners and regulators in pre venting sterilization and misallocation of this critical resource. This paper is a summary of that information."

Jan 1, 1989

By M. M. Williams

WESTERN CAN ADA'S coal industry has experienced a serious set-back since 1949, following a pattern well known to its counterpart in the United States. The loss in coal markets in Western Canada has been particularly severe as the discovery of large reserves of oil and natural gas and the subsequent construction of re-fineries and pipelines roughly coincided with the dieselization of both main railways. While the coal industry will have to face a further decline in markets of long standing, others with a large growth potential can be se-cured if present marketing methods are changed where needed and if fundamental and applied research programmes are actively pursued. The energy and chemical potential of Western Canada's coals will eventually find their place in the ever-growing needs of industry and electric power producers. Electric power generation would appear to offer the largest and most immediate market for coal. If the coal industry is to serve this market adequately and gain as much of it as possible, coal operators ? must have a good knowledge of certain characteristics -of the electric utility industry and its fuel requirements. This paper is prepared primarily to set out some of these characteristics, but also discusses other probable markets for coal.

Jan 1, 1958

By J. W. Reynolds

"The use of approved fire-resistant hydraulic fluids in equipment operating underground was made mandatory in British Columbia by amendment to the Provincial Mines Regulation Act effective January 1, 1975. This paper covers the action taken to achieve this, in the largest underground metal mine in British Columbia. Some evaluation of costs and effects based on experience to date is included.BackgroundAn amendment to the Mines Regulation Act of the Province of British Columbia was passed in July 1974 as follow s: "" Rule 111 (b) Hydraulic Fluids. After the first day of January 1975, all hydraulic fluids used in equipment operating underground shall be of a fire-resistant type accept able to the chief inspector.""Unquestionably, its intent was justified as a safety improvement measure. The list of fires in mines involving machinery where hydraulic fluid was a factor in the fires is long and sobering. In British Columbia, in a 22-month period from 1972 to 1974, there were six fires in metal mines resulting in extensive equipment damage and injury to four workmen. Nevertheless, no provision was made for research or development of systems modifications compatible with conditions encountered in B.C. and, as late as June 1977, the Mining Association of British Columbia continued to argue that fire suppression systems should be considered sufficient until a universal suitable hydraulic fluid could be developed. The sole concession was to issue permits for continued use of mineral oil in equipment bought prior to 1975 in order to allow producing operations to continue. The burden of developing the necessary technology was laid on the industry.The Sullivan Mine at Kimberley, the largest and longest established underground mine in the province, and Cominco's most important source of ore s for its smelter at Trail, B.C., was at the outset of a conversion from conventional to trackless mechanized mining methods in pillar recovery operation s. Introduction of fire-resistant hydraulic fluid s had to be done in a period of change, in many instances on equipment for which no data existed, and called for research which had to be done while retraining the work force.The introductory phase is complete. All equipment is on FRF, the requirements of Rule 111(b) are being satisfied, and a number of research and development programs continue."

Jan 1, 1980

By William D. Gallant, Thomas M. Barczak, Carol Tasillo

"This paper describes the results of full-scale testing of several multi-layered wood crib configurations that were tested in the Bureau of Mines mine roof simulator in cooperation with the Cape Breton Coal Research Laboratory and Cape Breton Development Corporation of Sydney, Nova Scotia. Nine different crib configurations currently being used as wood packwall supports for advancing longwall applications in Canada were evaluated. Configuration parameters understudy included the aspect ratio (height-to-width relationship) and percentage of solid material used in the crib construction. Test results and generalized wood crib behaviour are discussed in detail. Recommendations are made concerning crib constructions to maximize strength and stability. A cost benefit analysis of multi-layered wood crib configurations is made. A comparison of laboratory results and underground observations of several wood packwall supports in the Sydney coalfield suggest in situ load capacity is less than that measured in laboratory testing. Reasons for the apparent decrease of in situ load bearing capability are described.IntroductionA cooperative effort was undertaken by the U.S. Bureau of Mines with the Cape Breton Development Corporation (CBDC) and the Cape Breton Coal Research Laboratory (CBCRL) to evaluate the behaviour of gateside packing materials used in advancing longwall mining applications in the Sydney coalfield. As part of this effort, full-scale tests were conducted on wood packwall supports in the Bureau's 3-million pound (13.3 MN) active load frame.Nine different pack configurations were evaluated as part of this study. The wood packwall supports were multi-layered crib constructions from 6 in. (0.15 m) by 6 in. (0.15 m) cross section timbers using timber s 30 in. (0.75 m) and 60 in. (1.5 m) in length . The percentage of solid material in the crib constructions varied as illustrated in Figures 1 and 2. A summary of crib constructions is provided in Table 1."

Jan 1, 1991

By M. Rudolph, T. Leißner, TU Bergakademie Freiberg, C. Mämpel, R. Möckel, M. Embrechts, T. Leistner

Tin-mining activities have taken place in the region of the German Erzgebirge (Ore Mountains) for over hundreds of years up until 1991. For long times, gravity separation processes used to be the dominating beneficiation approach in those mining districts to recover cassiterite, the main tin-bearing mineral. For fine (< 100 µm) and very fine (< 20 µm) particles these approaches might not represent effective techniques, significant valuable materials could not be recovered and reported to tailings, where it was subsequently disposed. Thus, there are substantial amounts of cassiterite still present in these tailings disposals, most of it as very fine particles with already high degrees of liberation. That fact brings these tailings disposals into focus for potential reprocessing using beneficiation approaches, which are more sensitive to fine and very fine particles. In this paper we present results concerning the laboratory-scale treatment of material from exemplary heaps of the former Altenberg and Ehrenfriedersdorf mining sites using various flotation methods (including conventional froth flotation and oil-assisted flotation). Different size ranges of the material were previously prepared in order to investigate their response to the different techniques. For the study, special emphasis is put on agglomeration flotation, an oil-assisted flotation method. Therefore, an aliphatic oil phase of alkane basis is used to either selectively aggregate or collect the cassiterite particles. Recovery and flotation performance results are presented with respect to different process parameters: various collectors (including sulphosuccinamates and phosphonic acids) and depressants (including sodium fluorosilicate and oxalic acid) regime, oil dosage, agitation time and pulp density during oil/pulp agitation. Furthermore, the oil/particle aggregation behavior is analyzed via particle image analysis and, additionally, collector adsorption characteristics are investigated by contact angle measurements and zeta potential analysis. The data obtained is correlated with the testwork results achieved in order to interpret the flotation response of very fine cassiterite particles.

Jan 1, 2016

By E. S. Malloch

THE Great War forced the peoples of the world to recognize the importance of the wise development and use of the world&apos;s natural resources. Not the least, and perhaps the most, important, is the world&apos;s fuel supply- solid, liquid, and gaseous. Without fuel our civilization would be impossible, and mankind would of necessity have to congregate in the torrid zones of the earth&apos;s surface for at least six months of every year. Of the three classes of fuels the solid ones are the most plentiful, as well as being the most widely distributed, since few countries are entirely devoid of solid fuels of one kind or another. Until a hundred years ago wood was the fuel most generally used in this country, but since then coal has supplanted wood as a fuel in all its uses, except in the outlying districts and among the farming communities. For many years the supply of coal was thought to be unlimited, but as years went by more thought and study were given to the world&apos;s coal resources, until today not only are the limits known, but in one instance at least their depletion is predicted to be almost within the age of living men, unless more provident methods are put into practice for their winning and utilization.

Jan 1, 1928

"The Crescent, DM, and Pothook zones are copper-gold porphyry deposits which formed in association with alkalic intrusions of the early Jurassic Iron Mask batholith. The characteristics of the Crescent and DM deposits are nearly identical. Both formed along the contact between the Cherry Creek monzodiorite and Pothook diorite phases of the batholith. Permeable intrusion breccias along the contact concentrated the flow of hydrothermal fluids. Early, pre-ore alteration is represented by pervasive, sulphide-barren potassium metasomatism. The precipitation of copper-gold ore occurred during subsequent fracture-controlled potassic alteration, and is most strongly developed in chlorite-sulphide veins and their alteration envelopes. A central zone of potassic alteration is surrounded by a propylitic, pyritic halo in both deposits. The DM zone is unique among alkalic porphyry deposits in its high abundance of quartz-sulphide veins.The Pothook deposit formed at the westernmost contact of the Iron Mask batholith with enclosing Nicola Group volcanic rocks. Pervasive potassium metasomatism, similar in style to that at Crescent and DM, is associated with intrusion of the Cherry Creek monzonite. Pervasive and fracture-controlled albitic alteration is associated with intrusion of the Sugarloaf diorite and introduced minor copper-gold mineralization. Most of the copper-gold mineralization was introduced during formation of veins and breccia matrices dominated by magnetite/hematite and sulphide. Late-stage chlorite veining may have remobilized or introduced additional gold mineralization.Copper and gold assays in the Crescent deposit are well-correlated and have a nearly constant Cu:Au ratio, suggesting that the metals coprecipitated during a single hydrothermal event. In the Pothook deposit, copper and gold do not correlate closely, lack spatial correspondence, and suggest that transport and/or deposition of the two metals were not identically controlled and that they may have been introduced at different times by separate hydrothermal events."

Jan 1, 1995

By H. R. Butler

"The Ontario Division of Inca Metals Company, a Unit of Inca Limited, operates eleven mines, four mills, three refineries, one smelter and one iron ore recovery plant. All but one mine, mill and refinery are located within a fifty kilometer radius of Sudbury, Ontario. A mine-mill complex is located some 100 kilometers west of Thunder Bay on the shore of Lake Shebandowan and a nickel refinery at Port Colborne.During the past 10 years the use of recycled water in our milling operations has increased to more than 95% at each mill. This high degree of water reuse has reduced the (a) need for fresh water and (b) the contaminant level of the downstream aquatic environment. The aggregating of effluents in a common receptor provides a process water having a consistent quality thereby minimizing upsets in mill metallurgy while concurrently improving the operating economies and the downstream aquatic environment."

Jan 1, 1980

By James K. Gowans

"Cominco Ltd&apos;s Polaris Mine, located on Little Cornwallis Island, Northwest Territories (latitude 75degrees 30&apos;) went into production in late 1981, becoming the world&apos;s most northerly base metal mine. The concentrator, powerhouse, shops, offices, dry and warehouse, were uniquely designed and constructed on a 100f t wide by 400 ft long by 65 ft high barge. This process barge was constructed in southern Canada at Trois Rivières, then towed 3,500 miles into the High Arctic Islands and beached on Little Cornwallis Island.The paper deals with the original design philosophy, flowsheet and the initial year&apos;s operation of the Polaris process barge.IntroductionTo bring a mining property into production in the Canadian High Arctic, a company must deal with the harsh environment, the short shipping season and the high cost of labour. In trying to minimize the effect of these fact or s, the concept of a barge-mounted process plant was investigated as an alternative to the conventionally built concentrator. Cominco&apos;s previous experience gamed at the Black Angel Min e on Greenland&apos;s west coast suggested that this would be a practical alternative.The normal shipping season at Little Cornwallis Island is approximately six weeks long, from mid-August to the end of September. All equipment and materials must be delivered during the ""shipping window"". The logistics problems are enormous; if the conventional approach had been used the major process equipment would have been delivered to Little Cornwallis Island at the same time as the completed barge actually was! Construction would also be starting at the start of the worst climatic conditions, the Arctic winter. Nine months&apos; production was gained by opting for the ""barge"" approach."

Jan 1, 1983

By L. J. Cunningham

I THINK it can be safely said that no mining operation, whetl1er open-pit or underground, is ever entirely free of water. It follows that every ton of ore bears a charge which represents, either directly or indirectly, the cost of keeping the mine workings as dry as possible. Water problems occur in all phases of mining operations. They cause difficult and costly drilling conditions during the exploration stage, they often seriously delay mine development, they can slow mine production and reduce efficiency, and they are a continued burden over the life of the mine. It is therefore in the interest of all mining men to be familiar with the methods and materials used for grouting. The most common grouting material is cement. Cement grouting is old and well established, and many engineers are familiar with its uses and limitations. The technique of cement grouting is relatively simple and fairly well understood, and the materials utilized are relatively in-

Jan 1, 1962

By T. B. Williams

A SEARCH of the records indicates that evidences of accumulations of petroleum and natural gas within the boundaries of British Columbia were discovered at approximately the same time as were those of Alberta. They probably would have been developed as soon bad it not been for the fact that they are in such uninhabited parts of the Province. Even today, the seeps of the Flathead area, and the later discovered extensive seeps of the Peace River area, have been seen by very few people. From the geological evidence, there is reason for believing that British Columbia soon will be a petroleum producing Province. Fifty-eight operators, both companies and individuals, are now backing the money and the effort which they have invested with us, for the most part within the last three years, in a belief that this is so. The promulgation of the Petroleum and Natural Gas Act in 1947 marked the beginning of a new phase with regard to the exploration and the development of our petroleum and natural gas resources. Since August 15th, 1947, the date on which the Act came into force, the area under exploration bas increased from a few thousand acres, held by lease under the Goal and Petroleum Act, 1986, to 10,460,115 acres, including all active permits, licences, and leases. In addition there are 192,720 acres under application, bringing the total under issue and application to 10,652,835 acres. The total area is comprised of 105 permits, 20 licences, and 26 leases under the 1986 Act. The permits and licences, which ?represent active exploration and development, are held by a total of 82 companies and 26 individuals.

Jan 1, 1951

By M. Pawlik, E. Arinaitwe, V. Ferrera

A series of flocculation tests were performed on dilute quartz suspensions with the use of five polyacrylamide-based flocculants of similar molecular weights but of different degrees of anionicity. The tests were performed as a function of ionic strength and pH. The macromolecular conformation of flocculants in solution was assessed through intrinsic viscosity measurements under the same physicochemical conditions as those of the flocculation tests. It was generally found that the flocculating efficiency of the polyacrylamides correlated with their ability to coil or stretch in solution. Polyacrylamides with the degrees of anionicity on the order of 10-18% showed the highest flocculating efficiency in terms of the settling rates of the flocculated solids and the residual turbidity of the resulting supernatant. At the same time, these most effective flocculants were also found to exhibit the greatest tendency to coil and stretch in solution. This result suggests that the flocculating power of a flocculant is determined not only by its ability to adsorb onto (and bridge) fine particles but also on its ability to conform to the size of the resulting floes.

Jan 1, 2009

During the past 10 years, research work to improve the survey of stope limits after mining supplied useful information, particularly for large open and sub-level stopes, regarding waste dilution caused by differences between final production limits and planned stope limits. However, the efficiency of this information to improve the overall efficiency of the mining process is limited, given that the impacts of inaccurate ore limits leading to dilution (sensu stricto) and ore losses haw not been considered adequately. Geological/sampling information should be optimized in terms of quantity and/or quality for the deposit characteristics and the constraints of the mining method used. As industry practice regarding the definition and recording of dilution is flexible and as ore losses frequently am poorly doc-umented, the use of these terms is reviewed. Simulations were carried out on two typical narrow gold deposits, based on an earlier study at Inco&apos;s Thompson mine regarding the impacts of wide to narrow delineation grids using recorded variations of vein geometry. Vertical to sub-vertical deposits of 3 m and 6 m widths mined by long-hole open stopes were considered. Deposits delineated by 7.5 m (25 ft) grids were taken as a base case and the impacts of less accurate limits in conjunction with long hole mining based only on a 15 m (50 ft) delin¬eation grid. The impacts of overestimation (dilution) and underestimation (metal losses) were considered separately, using the average error of +/-0.62 m recorded in the Inco study. The impact of less accurate information was much stronger on the narrower deposit: both dilution and ore losses diminished the net present value of the 3 m wide deposit by 39.27% and 45.41%, respectively, and that of the 6 m wide deposit by 12.84% and 11.55%. As the impacts of ore loss and those of dilution on the net present value am almost identical in these simulations, we could, in practice, assume a 50/50 split between dilution and ore losses in such a case. These results do no take into account the effects of local optimization measures taken at the mine production level (blasthole sampling near stope limits, etc.) The potential impacts of geological and sampling uncertainties in terms of lower NPV justify and require more systematic efforts to ensure that deposit appraisal work and feasibility studies are adequate to optimize company revenue and competitive returns to investors from mine production activities.

Jan 1, 2005