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By Robert Halupka

The industrial minerals sector represents a broad range of products involving a variety of technologies serving a diversity of markets and end uses. Unit values of products vary widely, reflecting the peculiarities of each product/market sector. Generalizations are therefore understandably difficult to make and borrowers may need to take extra time to "educate" lenders on the key aspects of their business and industry sub-sector. This paper will examine the factors and the thinking that lenders apply when considering financing proposals to companies in the industrial minerals sector. If you understand the lender's perspective and their concerns, then you can make better use of your own time and resources when arranging financing for your company or project.

Jan 1, 2001

By Alex Matheson, Nick W. D. Massey, Peter T. Bobrowsky

Crowing pressures on aggregate resources include diminishing reserves, high transportation costs, sterilization and land use conflicts. In the absence of detailed resource knowledge for a particular region, aggregate resource potential maps provide the best "first approximation" regarding the surficial distribution of sand and gravel. The 1:50 000 scale Level Ill aggregate potential map integrates several important factors which influence the management of sand and gravel. Data used to generate this type of thematic map is readily available in most areas, fieldwork required is minimal, there is a logical quantitative evaluation of the data layers and integration is easily accomplished on a desktop PC-based platform. Also the aggregate potential map, with its focus on identifying areas of potential future aggregate exploitation as well as present inventory, provides a useful tool for the aggregate explorationist.

Jan 1, 2001

By Paul Guliov

Industrial clays, including a variety of bentonites and kaolinbased clays in southern Saskatchewan are hosted by Late Cretaceous and Early Tertiary sediments. Ofparticular significance are the deposits of swelling bentonite in the Cretaceous Bearpaw Formation and the kaolinitic clays of the Cretaceous Whitemud and Paleocene Ravenscrag Formations. Swelling bentonite is currently produced in the Wilcox-Truax area by Canadian Clay Products Inc. and yields at least seven different commercial products for a variety of applications. Kaolinitic plastic clays, including ball clay, stoneware and earthenware clay, as well as kaolin in southern Saskatchewan, have a long history of development and use. Products include common and face brick, refractory bricks and other shapes, chinaware, pottery, sewer pipe, chimney flue linings and tiles. Currently clay production is for out-of-province brick manufacturing and for pottery. Recent research and improved technology combined with expansion in certain areas of the global clay industry generally hold promise for a resurgence of a clay-based industry in Saskatchewan. Products of particular promise include: clay tiles; kaolin fillers and extenders; and aluminum as well as related by-products from kaolinitic clays based on the carbochlorination process.

Jan 1, 2001

By Terence M. Gordon, Mati Raudsepp, Gregory M. Dipple

Four methods of measuring mineral abundance in a rock are examined for their potential in assaying for high-tech industrial minerals. One method uses X-ray powder-diffraction data and the other three rely on whole rock chemical data and information on mineral assemblages and mineral compositions. All four methods were employed to estimate wollastonite content in diamond drill core of skarn collected as part of an exploration program and are compared to visual estimates of wollastonite content from core logs. These techniques for assaying wollastonite span a considerable range ofaccuracy and expense, and combined, define a non-linear relationship between these variables. Accuracy increases rapidly relative lo expense up to total costs of about $50 per analysis. Assay methods in the $50-100 per analysis range have associated errors of 5-10% relative and probably suffice for most exploration programs. Improvements in accuracy above this level require a much larger investment. The most expensive assay technique (-$300 per analysis) yields the most accurate measurement of grade (relative error -1%). Its application may best be limited to periodic checks on other assay techniques and for fine-tuning ofmineral separation procedures.

Jan 1, 2001

By Colin Jones

Canadian Clay Products Inc., which mines bentonite in Saskatchewan near Truax and operates a plant at Wilcox, is the sole producer of swelling bentonite, often called western bentonite, in Canada. Seven products produced by the company are used in binders, sealants, water and waste water treatment, plasticizing agents, foundries and absorbents. Reserves are reported at about one million tonnes for the deposit but the area in general contains significant additional reserves.

Jan 1, 2001

By Colin Harvey

The paper industry in the Pacific Northwest is a potentially large market for industrial clays. Current trends within the paper industry towards higher quality newsprint, filled and coated papers, offers an incentive for exploration in the region since the current supply of kaolin is mainly from Georgia in the southeastern U.S. Freight rates commonly exceed US$100 per tonne. The kaolin resources of the Pacific Northwest require expensive processing technologies to meet the industry specifications and it is doubtful that any large development of the local resources can be supported at the present time. Competition from high-quality regional resources of carbonates is another factor weighing against the development of local kaolin resources while there is a potential threat from shipments ofAsian and Brazilian kaolin in the early part of the 21st century.

Jan 1, 2001

By James D. Bamburak

Total mineral production in Manitoba has averaged C$1 billion over the past ten years. Industrial mineral production has comprised almost 10% of the total, with more than half coming from the aggregate sector. In southeastern Manitoba, tantalum, spodumene and amblygonite concentrates, cesium and rubidium ores, cesium formate, dimension stone and sphagnum peat moss are produced. Gypsum, high-calcium limestone and lime are produced in the Interlake area. Early industrial mineral production consisted of tools and implements, salt and pottery. Historical production has included: salt, building stone, aggregate, lime and dolime, lignite coal, gypsum, natural and Portland cement, calcium bentonite, brick, light-weight aggregate, caustic soda and soda ash, and silica sand. Future industrial mineral production may come from reactivated quarries, pits and wells or from new producers of current commodities. Newproducts may include: stainless steel master alloy, silicon metal, titanium and magnetite, lithium carbonate, float-plate glass and ferrosilicon, "marble" dimension stone, magnesium metal, potash and kaolin.

Jan 1, 2001

By W. A. Dixon Edwards

Industrial mineral production in Alberta, worth $468 million in 1997, comes from a dozen types of industrial minerals, mined by about 400 producers. Cement and lime from Paleozoic limestone formations exposed along the Rocky Mountains account for the greatest production value. Sand andgravel is the primary source ofmineral aggregate. Almost two-thirds of this aggregate is consumed in the Edmonton and Calgary regions. Sulphur produced at 48 sour gas processing plants and two oil sands plants was valued at $84.8 million in 1997 and accounted for 80% ofCanadian sulphur production. Four companies solution mine the Elk Point salt beds to produce chlor-alkali chemicals, industrial salt and sodium chlorate. Natural brine is also produced as a dust control product. Al $22 million, peat moss is a major industrial mineral product in Alberta. Other minerals with noteworthy production include shale, stone, silica and ammolite. The commodities with the greatest development potential are diamond, silica and oil sands tailings by-product minerals.

Jan 1, 2001

By Henri-Louis Jacob et Marc Bélanger

La province de Québec est un important producteur de roches et de minéraux industriels. En 1998, la valeur de cette production se chiffrait à 1,26 milliard de dollars canadiens (données préliminaires). Les minéraux industriels produits comprenaient: l'amiante extraite des gisements de chrysotile associés aux complexes ophiolitiques de Thetford Mines et d'Asbestos; l'ilménite et les scories enrichies en titane produites à partir du gisement d'ilménite massive du lac Tio associé au complexe anorthositique du lac Allard; le talc produit dans la région de Thetford Mines, à partir des roches à talc-carbonates associées à des feuillets de serpentinite; le mica broyé produit à partir de l'intrusion de suzorite du lac Letondal; le graphite en paillettes extrait du gisement du Lac-des-Îles; la wollastonite extraite d'une zone de skarn dans un lambeau de roches métasédimentaires enclavé dans le massif d'anor-thosite du LacSaint- Jean; le sel extrait aux Îles-de-la-Madeleine d'un gîte associé aux évaporites du Croupe de Windsor. Les nombreuses carrières dans le sud du Québec produisent, en plus de la pierre concassée, diverses substances incluant la pierre dimensionnelle (granite surtout); le calcaire pour la chaux, le ciment ainsi que divers usages industriels; la silice extraite à partir de formations de grès ou de quartzite. Le Québec est aussi un important producteur de tourbe de sphaignes qui est extraite de vastes tourbières qui se sont formées un peu partout dans le sud du Québec à la suite de la dernière glaciation. Les autres ressources en minéraux industriels comprennent des gîtes déjà exploités de brucite, de chromite, de magnésite dolomitique et de feldspaths ainsi que des gîtes de magnésite, de barytine et d'apatite faisant présentement l'objet d'évaluation.

Jan 1, 2001

By James Mackie

The Vancouver Stock Exchange (VSE) has been providing venture capital for start-up companies since 1907. Ninety years' experience in the junior mining industry has enabled the VSE to develop policies and procedures tailored to the unique needs of start-up companies. Policies and procedures applicable to listed companies are documented in the Corporate Finance Services Department "Policy and Procedures Manual." Approximately 50% of the companies listed on the VSE are in the mineral exploration and development business. The largest number are exploring base metal, precious metal or diamond properties. A recent count shows that about 20 companies are exploring industrial mineral or non-metallic deposits. The minerals sought by these companies include limestone, decorative stone, building stone, lava rock, wollastonite, zeolite, garnet and graphite. There are two basic routes to obtaining VSE financing for an industrial mineral property. The owner can either sell an interest in the property to a listed company or form a company and have it listed on the VSE. In each instance, the listed company is responsible for raising funds to develop the property. A typical financing consists of the sale of company securities byway ofeitherprivate placement or prospectus offering.

Jan 1, 2001

By D. Roy Eccles

A multi-element geochemical response, with contrasts of up to 29 times background, was obtained in soil above the Mountain Lake Diatreme, northwestern Alberta. The overall geochemical signature is indicative of an ultramafic source; geochemical responses contain elevated concentrations of Co, Cr,O, Cu and Ni with the presence of high Ba, Ga, HI, PO,, Rb, Ta, Ti and light rare earth elements suggestive ofa kimberlite or lamproite body. The shape, or morphology, of the enzyme leach-based geochemical signature over the Mountain Lake Diatreme combines moderately strong to strong oxidation halos, or a rabbit's- ear geochemical profile, with a sharply-defined apical geochemical profile. Because some Alberta diatremes discovered to date form positive topographic highs, the resultant geochemical signature may express the soil development profile that forms directly on top of kimberlitic and lamproitic bodies. The enzyme leach technique, which has proven to be a useful tool in base metal, precious metal and petroleum exploration, may have a significant impact on exploration for kimberlite, lamproite and related rocks in Alberta by providing industry with a useful and cost effective tool to probe blind and/or buried anomalies identified by airborne and ground magnetic surveys in areas of glacial overburden.

Jan 1, 2001

By Zdenek D. Hora

British Columbia is an important producer of a variety of industrial minerals for both domestic and export markets. Some commodities such as limestone, dolomite, gypsum, calcium carbonate, silica, barite and magnetite are raw materials for well-established industries located in British Columbia, Alberta and northwestern USA. Others, like magnesite, sulphur, jade, asbestos, dimension stone and clay products, are mainly exported in processed form to overseas customers. Companies are developing markets for relatively new mineral products, including pumice, volcanic cinder and zeolites. A number of attractive geological targets have been identified by industry while research by government geologists has outlined the potential for refractory minerals, gemstones, garnet, nepheline syenite, carbonatites, residual kaolin, igneous apatite and peat.

Jan 1, 2001

By W. Melnyk, L Pokhilenko, J. A. McDonald, A. Hall

The Camsell Lake property comprises 270 000 acres located about 240 kilometres northeast of Yellowknife in the Northwest Territories. Kimberlite has been located in two areas of the property:

Jan 1, 2001

By Ross I. Kelly

Carbonate rocks are widespread throughout Ontario and provide raw material for more uses than perhaps any other rock type. The principal carbonate rocks that are used by industry in Ontario are Paleozoic era limestone and dolostone. Limestone is a sedimentary rock that is composed mainly of the mineral calcite (CaCO,) while dolostone, also a sedimentary rock, is composed mostly of dolomite [CaMg (CO,),l. The majority of the province's limestone and dolostone extraction occurs from Paleozoic era rocks located in southern Ontario. Calcite and dolomite are also found in Precambrian marbles, calcite veins and carbonatites, however, utilization of these rocks by industry has been less common. Calcite and dolomite-rich rocks are utilized for a wide variety of uses including raw materials for cement and lime manufacture, chemical and metallurgical stone, fillers and construction aggregates (Derry, Michener, Booth and Wahl and OGS 1989a). For some uses chemical and physical requirements are very important. In the manufacture of glass, for instance, the chemical requirements of source materials are very important and very stringent. In other uses physical criteria such as whiteness may be more important. Although carbonate rocks are quite plentiful within the province, deposits that contain high concentrations of calcite or dolomite are somewhat limited. For that reason, this paper focuses on deposits that are known to, or may contain, a high percentage of calcite and/or dolomite. The paper emphasizes potential sedimentary limestone and dolostone resources, as these are the carbonate rocks most commonly utilized by industry in Ontario.

Jan 1, 2001

By Jon A. Carlson, W. Scott Williams

The EKATI"" Diamond Mine commenced operation in October 1998. It is operated by BHP Diamonds Inc., which is a part of the Non-Ferrous and Industrial Materials Division of BHP Minerals, a business unit of BHP Company Ltd. of Melbourne, Australia. The EKATI"" Diamond Mine is a joint venture of BHP Diamonds Inc. (51%), Dia Met Minerals Ltd. (29%), Charles E. Fipke (10%) and Dr. Stewart L. Blusson (10%). In December 1993, an office was opened in Yellowknife, Northwest Territories specifically for the then Northwest Territories Diamonds Project (EKATI"" Diamond Mine) development. EKATI"" Diamond Mine is located 300 kilometres northeast of Yellowknife and 200 kilometres south of the Arctic Circle in the Northwest Territories of Canada (Figure 1 ). The site is located in a remote tundra area of continuous permafrost, north of the tree line, which is part of the Canadian Shield. Wekweti (Snare Lake), a Dogrib community approximately 180 kilometres southwest of the project, is the closest neighbour. The mining area and facilities lie within the 10 960 hectares land leases held by the joint venture. The total claim block (core zone and buffer zone joint ventures) covers 344 000 hectares. To date, more than one hundred kimberlite pipes have been identified within the claims. Five of these provide the basis for the present mine plan. Total capital investment in the project is over C$700 million. At full production employment will be about 600, including employees and long-term contractors, with over 33% being Aboriginal from the Northwest Territories.

Jan 1, 2001

By George J. Simandl, Donald F. Gunning

At the beginning of the 20 century, British Columbia produced a wide variety of quality dimension stone products for both domestic and foreign markets. The industry flourished until the 1930s when most of the producing quarries closed as a result of the Depression. During the 1990s, British Columbia experienced the resurgent North American dimensional stone production trend. The industry benefited from increased prospecting activity and from substantial new investment in processing equipment, particularly in the granite sector. These activities resulted in new quarry developments, the reopening of abandoned quarries such as on Granite and Fox Islands <www.quadrastone.com>, and a renaissance in downstream value-added activities. British Columbia has reestablished itself as an important, reliable and innovative source of high-quality stone products.

Jan 1, 2001

By Richard J. Wardle, Ambrose F. Howse

The industrial minerals industry in Newfoundland and Labrador is a significant contributor to the provincial economy. The variety ofcommodities produced reflects the diverse geological environment from which they come. A highlight of the past decade has been the continuing development of dimension stone quarries, with producers now active in anorthosite, gabbro, granite and sandstone. Other dimension stone prospects have been identified and are in various stages of assessment and development. Western Newfoundland hosts a large resource of limestone, dolomite and marble. It provides raw material for industries that produce Portland cement, agricultural limestone and aggregate, as well as chemical-grade limestone and dolomite products. In western Labrador, dolomitic marble is quarried for use in the production of self-fluxing iron ore pellets. The recent opening of a new gypsum quarry at Fischells Brook signalled the beginning of a new era in the commercial production ofgypsum, a commodity which the province has produced since the 1950s. Hopefully it will emulate the nearby Flat Bay Quarry (now closed) which was a long-time exporter to markets along the U.S. eastern seaboard, in addition to supplying local demands. Oil production and continuing exploration in the Newfoundland offshore has renewed interest in local barite deposits for potential use in drilling fluids. Already there has been some production from the Collier Point deposit, and at Buchans, an existing plant is being refurbished to recover barite from a large tailings pond. Emerging new industries include the development of an antimony mine in central Newfoundland, the development of silica deposits near Labrador City for silicon metal production, and reactivation of the St. Lawrence fluorspar mine. The province has many deposits with development potential such as rare metals at Strange Lake, white marble at Roddickton and salt deposits near St. George's Bay region.

Jan 1, 2001

By Lou Covello

Bow Valley Industries Limited i conducting an on-going exploration program for gold in Archean, turbidite-hosted iron formations near the Lupin mine on Contwoyto Lake, orthwe t Territorie . Exploration philosophy and practice are modelled on the Lupin deposit where 70% of the gold occurs within laminated pyrrhotitechert. sulphide facie iron formation. Thi i intimately associated with barren to low-grade silicate facie iron formation which i enclosed by predominantly argillaceou meta ediment . This type of mineralization i amenable to exploration through an integrated program of geological and geophy ical surveying, consisting of the following: i) Geological urvey both regional and local to outline area of turbidites and a ociated iron formation. Structural and tratigraphic trends documented during this phase are useful in determining eventual grid configurations. Grids are then mapped and ampled at 1:2000 cale. ii) Magnetometer and gradiometer urvey at the ame scale define strongly magnetic diabase dyke and erratically magnetic portions of iron formation. iii) VLF-EM survey are u eful in outlining conductive trend invariably as ociated with sulphidic or graphitic phase of iron formation. iv) Geological updating and ampling of iron fom1ation based on the geophysical su rveys. This is necessary for the production of a final geologic map and a an adjunct to drill target election. In problematic instances self-potential urveys have documented the pre ence of non-conductive sulphide accumulations, and horizontal loop EM surveys have been used to determine conductor geometry and quality. Target selection is based on a synthesis of the information from all of the above surveys with the results of no single survey being critical to drill decisions. The program is designed to provide first-pass, detailed , cost-effective ground coverage of large areas of highly prospective geology.

Jan 1, 1986

By Denis Yaychuk, Gary Billingsley

The economic eva luation of a mineral property or mining venture should include the quantification of ri k as part of the analy is. The re ults of such an analysis provide the decision-makers not only with the most likely financial outcome and the probability of achieving that or any other outcome. but al o with a ranki ng of the relative impact of all the ri sk factors. These type of resu lts offer more complete information for investment and technical deci ions than the traditional cash flow/ ensitivity analysis. In addi tion. by attempting to quantify ri sk. the personnel providing the va ri able input are forced to take a much clo e r look at the data involved, and are fo rced to work together. the reby increa ing substantially the awa reness of the impact their work and others· work has on th e outcome of the analysis.

Jan 1, 1986

By Colin E. Dunn

The high mobility of gold within the plant kingdom results in detectable accumulations of gold in many plants. Concentrations vary within individuals, among species, and with seasons. From an evaluation of the chemistry of easily acce sible organs of common pecies in the northern forests, it is concluded that alder twigs (or leaves) and conifer bark scales are the vegetation components of greatest use in the earch for concealed gold mineralization. Maximum anomaly enhancement is obtained from twigs collected in the spring. Examples are given of urvey conducted in the La Ronge Domain using 1) jack pine bark (A nglo-Rouyn and Upise Lake areas) ; 2) alder twig (McLennan Lake) ; 3) black spruce bark (Rod Zone near Mallard Lake, and at Waddy Lake) ; and 4) multi-media (Tower Lake). At the latter two sites gold-bearing till is blanketed with late glacial material. Gold enrichment in the plants suggest that the roots are ab orbing gold from the underlying till. Complex processe control the uptake and retention of gold in plants. An understanding of these processes pem1its biogeochemistry to assist in locating near- urface mineralization .

Jan 1, 1986