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By Xuanxue Mo, Zengqian Hou

"Yidun Island Arc in Sanjiang Region is one of the important Kuroko-type volcanogenic massive sulfide deposits (VMS) districts in southwestern China. Tectonically, the region is situated in the eastern portion of the Tethys orogenic belt, and is a late Triassic extensional island-arc. The island-arc underwent earlier arc construction, intra-arc rifting, later arc construction and backarc spreading during its evolution and formed a complete trench-are-basin system, i.e., the Ganzilitang suture zone, forearc basin, outer are, intra-arc rifting zone, inner arc and back-arc basin from east to west across the island-arc.Kuroko-type VMS deposits and occurrences discovered so far are limited to within the intra-arc rifting zone of the Yidun Island Arc and tend to occur in groups or clusters distributed in separate faultbound basins; e.g., Zengke, Gacun and Xiangcheng basins, in which submarine volcanic rocks, especially bimodal volcanic suites, were extensively developed. The VMS deposits formed in the waning stages of volcanic eruption in the late Triassic and are hosted in the uppermost section of acidic volcanic rocks (rhyolitic-dacitic) within a bimodal suite. The orebodies are associated with these host rocks: rhyolitic-dacitic pyroclastic rocks and exhalites and chemical sedimentary rocks.All VMS deposits in Sanjiang are of the Zn-Pb-Cu type. The architecture of the deposits is twofold, consisting of concordant lenses and layers of massive sulfides and an underlying discordant stockwork. All deposits show metal zoning. The hydrothermal alteration related to mineralization is strong and asymmetrical, and is found dominantly within the stockwork zone and host rocks surrounding the ores. There are two alteration patterns: (1) chloritization - sericitization - silicification from outer sides to core of the alteration pipe; and (2) silicification + sericitization - silicification + carbonate from the lower to upper part of the alteration pipe.The mineralization temperatures of ore-forming fluids vary in the range 200°C to 335°C. Thermal evolution of the fluids displays temperature profiles that first increase and then decrease with progression of mineralization processes. The majority of black-ore minerals (Groups I and informed during intensifying stages of hydrothermal activity, and the majority of semi-yellow-ore minerals (Group III) formed during a thermal maximum. There followed the formation of fine-grained black-ore minerals (Group IV), which interacted with barite layers during decreasing temperature phases.Oxygen and hydrogen isotope studies show that the sources of ore-forming fluids for the Kurokotype VMS deposits are two-fold: seawater and magmatic hydrothermal solutions, represented by the Kuroko deposits in Japan and Kuroko-type VMS deposits in Sanjiang, respectively. In the latter case the hydrothermal solutions reacted with host rocks and mixed with cold seawater percolating downward, and circulated through volcanic rocks resulting in development of alteration zones and formation of ore minerals in Kuroko-type VMS deposits."

Jan 1, 1993

By R. D. Brown

"When elephants fight, it's the grass that gets trampled". It is becoming increasingly evident that the federal and provincial governments are awakening to the fact that their vigorous scramble for a "fair share" of mineral revenues which kicked off in 1974 has done considerable harm to the Canadian mining industry. Recent public statements made by government officials, particularly at the recently held annual convention of the Prospectors and Developers Association, would indicate that there is a general consensus in the government sector that changes must be made to the mining tax system. However, there is no evidence as yet that there is any agreement among the various governments as to what form these changes should take , who should make them , or when. It would seem to be worthwhile at this time to reflect on where the Canadian mining industry has been vis-a-vis taxes and "where it is at ". This article is based on a recent address given by R. D. Brown, of Price Waterhouse & Co., Toronto, at the annual convention of the American Institute of Mining, Metallurgical and Petroleum Engineers in Denver , Colorado.

Jan 1, 1978

By W. H. Stheeman

"The high rock pressures at the deeper levels of the Tsumeb Mine have necessitated the changing of the mining methods and the introduction of cable bolts. After two rockfalls in the cable-bolted stopes, the mechanics of cable bolting were investigated. Practical methods were developed to find the best grout mixtures, the bond stresses between cables and cement, the bond stresses between rock and cement and the load on the cable bolts, which was mathematically calculated from data observed underground. The design of the cable bolt support system as used at the Tsumeb Mine is explained. GeneralThe Tsumeb Mine is in northern South West Africa/Namibia, approximately 400 km by road from the capital city, Windhoek, at an elevation of 1300 m above sea level. Mining operations in Tsumeb were started in 1905 by the Otavi Minen und Eisenbahn Gesellschaft and continued, with an interruption during the Depre ssion, until 1940, when the mine was closed and taken over by the Custodian of Enemy Property. The present owner, Tsumeb Corporation Limited, obtained the mine in 1947 and restarted the underground mining operations in 1949 after the mine was dewatered. Currently, the stoping operations are between 26 Level (840 m below surface) and 38 Level (1260 m below surface). In addition, the mine is an important silver producer and has produced 670,100 kg of silver since 1947."

Jan 1, 1982

By Halet. R. A.

"The Quesabe Mine, owned by Brunston Mines Limited, is a gold deposit in the south central part of Duprat Township, northwestern Quebec, about 10 miles northwest of Noranda.It is one of the few gold mines in Canada developed since World War II. The occurrence of gold in the Quesabe fault structure has been known for many years, but serious exploration did not begin until 1945. By 1949, 15,000 feet of diamond drilling had been completed and a shaft sunk to a depth of 635 feet, with lateral development on the 450 and 600 foot levels. In 1949 and 1950 a new shaft was sunk to 1,050 feet, new levels were established at 800 and 1,000 feet, and ore was mined and shipped to the Noranda smelter. After November 1950 the ore mined was treated in the company's own mill. The grade of ore was marginal under existing economic conditions, and production was suspended in April 1952. The mine produced about 100,000 tons of ore with an average grade of approximately 0.25 ounces of gold per ton.GeologyThe bedrock formations are all Precambrian, and the general geology of the area has been described by W. G. Robinson (1). The rocks in the vicinity of the mine are acidic and basic volcanics of the Keewatin series (andesite, rhyolite, agglomerates, tuffs) invaded by the Flavrian Lake granite stock, and by dykes and irregular masses of intrusive felsite, quartz porphyry, syenite-porphyry, diorite, and lamprophyre.The mine workings are in andesite and felsite, about 2,500 feet west of the western margin of the Flavrian Lake stock.The principal structural feature of the area, from an economic point of view, is the Quesabe fault. This steeply-dipping fault cuts all the rock formations of the area, and has been traced for about 11 miles along a strike of north 65 degrees east from Lake Arnoux in the northeast corner of Dasserat Township to Duprat Lake near the east boundary of Duprat Township."

Jan 1, 1949

By Fred E. Gray

The mill of Bralorne Mines, Limited, is located on the government highway in the Bridge River mining district of British Columbia, approximately fifty miles northeast of Shalalth, the shipping point on the P.G.E. railway. Prior to 1931, the property now owned by Bralorne Mines, Limited, was operated by Lorne Gold Mines, Limited. During the early operation of the mine, the ore had been treated at various times in one of three small amalgamation mills on the property. With the succession to ownership by the Bralorne Mines, Limited, work was started on construction of a new mill of approximately 100 tons capacity per day. The new mill was put into operation in the month of February, 1932, and since that date has been in continuous operation, milling an average of slightly over 3,000 tons of ore a month. The ore treated in the Bralorne mill is a gold-bearing quartz containing a very small amount of silver. About 75 to 80 per cent of the gold is in the form of free gold, the principal remaining portion being intimately associated with pyrite and arsenopyrite. The gangue rock is quartz, together with varying but relatively small amounts of altered diorite or albitite. In some of the ore, usually the higher grade portions, there is also considerable talc, which forms much slime in grinding. The mill is situated near the portal of the main haulage tunnel and the ore is received directly from the mine ore-trains, which dump on to the grizzly over the coarse-ore bin of the crushing plant. Figure 1 shows the flow-sheet of the mill as it is now being operated. Various changes have been made in the flow-sheet and in the reagents since the commencement of operations, and doubtless minor changes will continue to be made in order to increase the efficiency of the mill. Among the more important changes were those from two-stage to single-stage grinding, and from amalgamation plates to blankets. The change in the crushing was made because too much crushing was done when both primary and secondary mills were employed.

Jan 1, 1933

By P. A. Christopher, R. H. Pinsent

"The Adanac molybdenum porphyry deposit near Atlin, in northwestern British Columbia, was discovered in 1905. It was explored extensively between 1967 and 1980.The deposit is within a complex, multi-phase, quartz monzonite stock that is a satellite of the post-accretionary, Surprise Lake Batholith. Biotite K-Ar dates range from 703 ± 2.4 Ma to 71.6 ± 2.1 Ma, indicating a Late Cretaceous age of emplacement.The deposit comprises an irregular-shaped ring or halo peripheral to a quartz monzonite porphyry dome, or ""cupola': The shape of the ring, and of a smal~ fine-grained quartz monzonite intrusion, and the presence of higher-grade mineralimtion on the eastern flank of the cupola, suggest partial control by a preminera/ structure. The deposit is truncated by a steep, northwesterly dipping, normal fault (Adera Fault) that down-dropped the northern half of the deposit by a minimum of 100 mThe deposit lacks strong zonal alteration but there are narrow envelopes of potassic alteration around some veins and local zones of intense wall-rock silicification. There is considerable retrograde alteration along postminera/ faults and fractures.Molybdenite occurs in veins and fractures, many of which are relatively flat-lying. They occur in all phases of quartz monzonite. Molybdenum is the only element of economic significance. There are vein and skarn occurrences with tungsten, tin, lead, zinc and precious metals peripheral to the deposit.In 1981, Placer Development Limited reported an ""undiluted mineable mineral reserve"" of 151 971 000 tonnes grading 0.063% Mo at a cutoff grade of 0.04% Mo and a strip ratio of 1.5:1."

Jan 1, 1995

By C. R. Edwards

"Equity Silver Mines Limited owns and operates an open pit silver 111ine located 37 km southeast of Houston in the Omineca District of British Columbia, Figure l. The property is approximately 300 km west of Prince George and 417 km east of the Port of Prince Rupert. This is the largest silver mine in Canada and one of the five largest silver producers in the western world.Equity is a subsidiary of Placer Development Limited, which owns 70 of Equity's issued and outstanding Common Shares. Placer was responsible for financing and developing the property and now provides general management and administrative services.All mining is by open pit methods, using three 1600 P&H shovels, eight 45 t Caterpillar and three 77 t Wabco trucks, three 40R rotary drills, two D8 dozers, one 9888 front-end loader and other ancillary equipment. We are now phasing out the Southern Tail pit and bringing the Main Zone into productior; see Figure 2.Comminution in the concentrator is achieved via primary, secondary, and tertiary crushers followed by rod and ball mills. The flotation circuit, with Southern Tail ore, produces a concentrate containing between 3 000 and 6 500 g of silver per tonne, 201 copper, and 25 g of gold per tonne. Running Main Zone ore, concentrate grades will decrease to about 4 500 g of silver per tonne, 17% copper, and 18 g of gold per tonne. Design milling capacity is 5 300 tpd, which is often exceeded.The flotation concentrate contains relatively high levels of antimony and arsenic. Because of these impurities Equity was unable to obtain economically acceptable long-term sales contracts for flotation concentrate. For this reason a leaching process was developed, and a plant designed, built and placed in operation. Due to the complex and unique technology involved, many start-up problems were encountered but by March 1983 the leach plant was considered ""fully operational."" This paper describes some of our progress and problems in bringing the Equity leach plant through its start-up period."

Jan 1, 1984

By T. B. Williams

Most geologists have felt the need of a longer base than is ordinarily available when using a Brunton compass or other convenient instrument for taking strikes and dips in the field. To overcome this difficulty a lath or stick with straight parallel sides is frequently used. This accessory adds to the accuracy of the work, but it is a decidedly inconvenient one for the geologist to carry, especially if he be heavily loaded or is travelling on horse-back or through thick brush on foot. The writer has abandoned its use in favour of a sturdy two-foot carpenter's rule. The rule preferred is manufactured by J. Rabone and Sons, Birmingham, England. It is provided with a good level-bubble set in one of the limbs, and a scale, of the protractor type, graduated to five degrees through 180 degrees, attached to the main joint at the middle of the rule. (See Figure 1). For an instrument of its kind it is very accurate, and, in addition to the uses mentioned below, it 'is a handy thing to have around any camp. It is frequently used when plotting roughly in the field and for a protractor when one is not available. When not in use it may readily be carried in the top of the high-boot or legging. Ordinary strikes are measured as illustrated in Figure 1, the compass being held against the rule, which is in a horizontal position. Dips may be measured in a corresponding way by holding the Brunton compass against the extended rule, which is thus used merely as a straight edge. It is usually much more convenient, however, to ? use the rule only for this purpose, in which case one foot of the length rests as a straight-edge against the rock surface. This adaption is shown in Figure 2.

Jan 1, 1929

By F. Bélanger, P. Fournier

"The Detour Lake Mine is located in northeastern, Ontario, approximately 300 kilometres northeast of Timmins and 185 kilometres by road northeast of Cochrane. The mill processes a free milling gold ore using both gravity circuit and leaching with a state-of-the-art carbon-in-pulp circuit. The grinding circuit is a conventional SABC circuit with a tonnage of 60,000 mtpd at 95 microns with the addition of pre-crushing upstream of the SAG mill. This paper will highlight the impact of a pre-detox thickener on the cyanide consumption in a gold leach/CIP circuit. While the pre-detox thickener was built with the intention to reduce the cyanide consumption, the opposite effect was observed when the thickener was put temporarily offline. It will show how the re-circulation of a dilute stream of cyanide into the grinding circuit, increases the overall slurry temperature and by the same effect, increases the dissolved copper concentration in the leaching circuit which subsequently increases the cyanide consumption.INTRODUCTION The processing plant is using a conventional gravity, cyanidation and carbon-in-pulp processing facility currently operating at approximately 60,000 mtpd. The comminution process is based on two parallel SABC lines, each fed from an individual reclaim tunnel. Cyclone overflow from the two ball mill circuits is directed to the pre-leach thickener. The thickener underflow is distributed to two (4) parallel leach trains of 5 tanks each, each leach train providing 29 hours of leaching retention time. After leaching, the gold in solution is recovered in a carrousel CIP circuit consisting of two (2) parallel leach trains. Tails from each CIP circuit are combined and sent to a pre-detox thickener to recover as much cyanide solution as is economically practical before being diluted and fed to a cyanide destruction system. The detoxified tailings are sent to the Tailing Management Area (TMA) for settling and retention. The excess water from the TMA is reclaimed and recycled back to the processing plant. The pre-detox thickener is designed to thicken the leach tails slurry to 64% solids with the overflow being recycled to the grinding circuit. It is estimated that the pre-detox thickener will recover 60% of the cyanide in the CIP discharge solution. It is also designed to reduce the SO2 consumption by diluting the thickener U/F to 50% solid using the tailing pond reclaim water which has very little cyanide content."

Jan 1, 2019

"Abstract - An estimation of resources of structurally complex gold lodes and stockworks represents a challenging task for geoscientists due to the complex geometry of the lodes and discontinuous grade. In the present case study, the resource of a gold stockwork has been estimated by uniform conditioning after the lode has been subdivided into geostatistically defined domains using the indicator probability model. The indicator probability model represents a powerful tool for structural interpretation of the mineralization and can be applied when traditional 3D volume constraining methods (wireframing) have failed to produce a unique, non-subjective model. For comparison, the resources of the same zone have been estimated without domaining. Results of the study clearly show that estimates obtained without domaining of the mineralization can yield a substantial error due to excessive smoothing of the grade.Application of uniform conditioning for modelling the grade distribution has a significant advantage over linear methods (e.g., ordinary kriging). Uniform conditioning enables estimation of local recoverable resources at different selective mining unit sizes that can be substantially smaller than the drilling density without creation of biases or over smoothed local values."

Jan 1, 2002

By J. Severin

Surface mining operations are increasingly involving the design and development of deeper and larger open pits, often with plans to transition into underground mass mining operations. Experiences at the Palabora Mine in South Africa demonstrate the complex interactions between underground workings and the steep slopes above that may lead to slope movements that potentially pose safety and economic concerns. To properly assess the rock mass response to these interactions for planning of future developments, understanding the controlling influence of geological and geomechanical structures is crucial. Preliminary results are presented from a detailed review of historical slope monitoring data from the Palabora Mine, before and after the initiation of block caving 400-m beneath a 800-m deep pit. This paper demonstrates that a detailed analysis of geology and monitoring data can be used to better understand the kinematic controls of complex rock slope displacements and interactions between open pits and underground mines. This investigative treatment of the monitoring data is important in understanding the failure mechanisms prior to undertaking sophisticated 3-D numerical models.

May 1, 2009

By P. K. Kaiser, S. M. Maloney, S. P. Singh

"Corrosion of underground support measures constitutes a concern to industry in both safety and economic terms. It also represents a potential market for corrosion resistant materials such as stainless steel.In order to assess the market potential for a stainless steel friction rock bolt, a review of current corrosion processes and remedial or preventative measures in the underground environment was undertaken. This was supplemented by distribution to industry of a detailed questionnaire, concerning the magnitude and extent of support corrosion and the costs of current support measures, and by visits to selected sites. Following data synthesis, support costs were established and the economic benefit of stainless steel rock bolts evaluated.Stainless steel rock bolts can be an effective cost reducing measure in unscreened areas requiring frequent reconditioning. Their benefit is rapidly diminished, however, if only partial reconditioning is required, the reconditioning interval is long or if screening is required.While most industry personnel are receptive to the application of stainless steel support measures, the localization of corrosion problems and the potential high cost of this type of support are barriers to its widespread implementation. They have potential for use in extreme environments. However, this relatively small market may not be economically viable.IntroductionFriction rock bolts are the simplest of all interior rock fixtures. The friction resistance to sliding of the rock on the bolt is generated by a radial pressure against the borehole wall over the length of the bolt. Two types of friction rock bolts are currently marketed, the Split Set and the Swellex.Unlike conventional point anchor bolts, friction rock stabilizers may move relative to the rock strata and maintain their capacity even if rock shifts, a condition that sometimes loosens or breaks conventional bolts. Ease of installation, effectiveness in jointed as well as weaker rock, and the possibility of having relatively long bolts are a few of the many advantages which generate considerable interest in the application of friction rock bolts (Wijk and Skogberg, 1982). However, due to their thin-walled construction and large surface area, frictional rock stabilizers are more susceptible than conventional bolts to damage by corrosion. For this reason, they are normally not recommended for long-term use (Jolly and Neumeier, 1987).In light of the above discussion; the Nickel Development Institute commissioned a study by the Geomechanics Research Centre with the objective of generating a credible database for the assessment of the feasibility of a stainless steel friction bolt system in corrosive ground and mine environments."

Jan 1, 1990

By Christina Graf

A synthesis of colloidal gold shell particles with a silica core is described. Small gold nanoclusters were attached to the functionalized surface of colloidal silica particles. Reductive growth and coalescence of these clusters lead to the formation of a closed gold layer. By variation of the thickness of this gold layer and the radius of the shell it is possible to adjust the plasmon resonance of the gold shell particles over the whole visible and infrared region of the spectrum. The optical properties of the particles made are in good agreement with theoretical calculations for coreshell particles. Due to their low polydispersity these gold shell particles form in solution large crystals with submicron lattice constants. It is also possible to produce hollow gold shells by dissolution of the silica core. A new method to coat the silica core gold shell particles with an additional outer silica shell is also presented. This allows due to a reduction in the Van-der-Waals forces to make more permanent dried crystals and facilitates functionalization of the particles for use in various photonic applications.

Oct 1, 2003

By P. R. A. Andrews

"Garnet occurs in schists and gneisses in all provinces of Canada, all mainly in Quebec and Ontario. There is currently a renewed interest in exploration for economic sources of garnet for abrasive applications because of the inherent dangers from exposure to ground silica from sandblasting operations.High-quality garnet is used for lapping and grinding of glass and ceramics; for coated and bonded products such as sandpaper and cloth; and abrasive wheels for grinding and finishing various metals, woods, rubber and plastics. Low-quality garnet is used for cleaning and conditioning aluminum and other soft mewls, particularly by aircraft manufactures. Garnet may be added to grouting cements for oil-well drilling applications, and it has also been used for low- to medium-level radiation shielding. Garnet has been studied extensively by CANMET and its predecessor, Mines Branch, between 1917 and 1990. Twenty-nine studies relating 10 various aspects of beneficiation are presented and a review of the more important studies is presented. The information includes mineralogy, beneficiation methods, product sizes and analyses."

Jan 1, 1995

By Norman M. P. Low

"IntroductionIndustrial applications of mica utilize two commercially important varieties of mica: muscovite and phlogopite. Muscovite mica is a potassium mica with a general chemical formula, H2KA1(Si04)3 h, and is sometimes referred to as a potas hsilicate. Phlogopite is a magnesium mica having a general chemical formula, H2KMgSi(Si04)3, and is distinguished from the muscovite mica by its decomposition in sulphuric acid.Canada is one of the major natural mica producers in the world. A large tonnage of the mica powders is at present mined and processed in the Eastern Townships of Quebec. This Canadian mica is of the phlogopite type. A closely related mineral of the mica family which is widely used in the construction industry is vermiculite. It is a dehydrated magnesium-aluminum-iron silicate characterized by a foliated structure. Expanded vermiculite, which is often referred to as exfoliated mica, is used as many types of thermal and acoustic insulation, as loose fill in buildings, as an aggregate in concrete, as an ingredient in plaster and insulating concrete , and in fire-proofing compositions. Natural phlogopite and muscovite mica powders are used extensively as reinforcing agents in organic polymers. They also have a wide range of applications in commerical products. For example, dry-ground mica powders are used in large tonnage as a surface finish in roofing materials and as a bonding agent in wallboard joint cement. Common products such as paint, rubber, plastics and welding rods contain mica. Recent studies have also shown that mica powders can be added to portland cement in the preparation of concrete products, as they could improve the tensile strength of the concrete products. The potential and possible"

Jan 1, 1982

By Yves Pépin, Sylvain Lefebvre, Dimitrios Filippou, Guillaume Hudon

"Titanium dioxide pigment plants using the so-called “chloride process” produce considerable amounts of chloride waste, which contains predominantly iron chloride. In most cases, this waste is dissolved in a weak hydrochloric acid solution and then neutralised. The metal content of the waste is dumped as hydroxide sludge, while its chloride content is lost in an effluent.Rio Tinto Iron & Titanium has developed a new proprietary process whereby pure metallic iron and chlorine gas are recovered from chloride waste by electrolysis. This process uses a two compartment cell separated by an anion exchange membrane to prevent iron cycling between its trivalent and divalent valence. The cathode is made of titanium Grade 7, while the anode is a dimensionally stable one of the type “metal–mixed metal oxide” (MMO) for the evolution of chlorine gas. The catholyte is concentrated and pH-adjusted iron-rich chloride solution originating from chloride waste. The anolyte is recirculating solution containing alkali or alkali earth chlorides such as MgCl2, NaCl, etc. Current efficiencies above 90% can be achieved at temperatures about 80°C using catholyte solutions almost saturated in iron chloride and other chlorides.In this paper, we discuss the details of this process, and how this could be integrated within a chloride pigment plant for the treatment of chloride wastes."

Jan 1, 2016

By M. Souley, G. Armand, M. Ghoreychi, D. Seyedi, J. -B. Kazmierczak

"An anisotropic constitutive model is proposed in this paper accounting for both structural anisotropy and induced anisotropic plasticity. It is assumed that the rock is composed of a matrix and of potential planes of weakness. The matrix is assumed to be linear, transversely isotropic and the plasticity is described by a non linear yield function where the parameters are deduced from the nonlinear Hoek-Brown envelopes in pre- and post-peak, and derived from the laboratory characterization. A non-associated flow rule is used with a distinction between compression and extensional stress paths, as well as the absence of volumetric strain beyond large plastic distortion.The planes of weakness are considered as known a priori or assumed to be oriented perpendicular to the direction of the current minor principal stress. An elastic-perfectly plastic behavior according to the Mohr-Coulomb criterion is assumed in the planes of weakness; while the elastic part is considered as linear and transversely isotropic.Finally, the proposed model was implemented in FLAC3D and used to simulate triaxial compressions to provide a verification of the implementation. The applicability of the implemented model to reproduce damage (pre-peak) and/or failure developments around a circular opening is checked. The GCS drift, one of the mine-by experiments set up at the main level of the Meuse/Haute-Marne Underground Research Laboratory, is selected for this first application."

Jan 1, 2015

By Robert B. Parsons

"During hard times, the focus on tax issues makes a slight change in direction. Mining companies contemplate the tax treatment of transactions and circumstances which are the product of a difficult financial environment. Some of these issues are discussed in this month's edition of Tax Notes.Every industrial sector in Canada is undergoing a major restructuring of some form, and the mining industry is not an exception. The longest recession since the Great Depression continues to affect the economy. Mining firms seek to bring their debt/equity ratios into line, and try to replenish depleted retained earnings by selling assets. This month, Tax Notes briefly examines some of the tax issues which are generally encountered during the course of such a restructuring process.Debt SettlementOne question which commonly arises during hard times concerns the tax treatment of a "" gain "" realized by a debtor on the settlement of a debt. Consider, for example, a simple situation where a creditor wants to protect itself from further losses, and makes a deal with the mining company to accept a cash payment of $8 million in full settlement of a $10 million loan. In financial terms, the debtor has made a $2 million gain on the settlement of the debt. What is the tax treatment of that gain?The Income Tax Act (the Act) contains provisions in section 80 of the Act and in section 5400 of the Income Tax Regulations which deal specifically with this question. First of all, it is noted that the $2 million gain is not brought directly into income for tax purposes. However, as indicated below, the gain could affect the debtor's income indirectly to the extent that certain of the debtor's tax pools must be reduced by the amount of the gain."

Jan 1, 1993

By M. G. Goudge

IT IS ENOOURAGING indeed to note during the past year that, despite a slackening off in many markets and with numerous major difficulties and problems to solve, the mining industry of Nova Scotia was maintained at a very high level. The value of the Province's mineral production for 1957 amounted to approximately $65,000,000. This represents a drop of only 1.5 per cent from the figure of the previous year. Coal Atlantic Collieries, Ltd., opened a new coal mine during the year at Bras d'Or. This colliery is equipped with the most modern type of mechanical equipment available, with transport of the ?coal by a belt-conveyor system. Other mines in the Province continued to mechanize their operations by the addition of Diesel haulage locomotives and other mechanized mining equipment. New wash plants are in operation and .an additional one is planned.

Jan 1, 1958

By G. W. H. Norman

"During the past few years emphasis has been placed on the importance of major faults, fault zones, and associated structures in localizing ore deposition. This interest has developed partly through experience in mining camps in other parts of the world, and partly by the discovery of such structures associated with ore deposits in the Abitibi region, northwestern Quebec. The recognition of these structures has been brought about chiefly by detailed mapping that has been gradually extended along most of the southern gold belt of Quebec and across adjacent parts of Ontario. In the Chibougamau region of northern Abitibi, progress has been made in mapping major faults by using aeroplane photographs with a scale of about 1,000 feet to 1 inch for field mapping. These studies have shown that many large faults occur in the Abitibi region; also that there is a relationship, direct or indirect, between faults and mineral deposition. The faults are, however, of more than one type and age, and this should be clearly appreciated in any planned programme for prospecting this great region adequately.Geology of the Abitibi RegionGeneral GeologyFaults of more than one age and type occur in the Abitibi region. In order to appreciate some of the age relationships of the faults, a brief summary of the historical aspects and major structural features of the geology (fig. 1) is necessary. These historical aspects may be briefly summarized in chronological order as follows:(1) Accumulation of Archæan lavas and associated pyroclastic rocks, either alternating with, or essentially followed by, deposition of sedimentary rocks, and interrupted at least once by local and perhaps regional folding and erosion."

Jan 1, 1954