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By L. Micale

In May of 1986, the Arizona Legislature passed comprehensive environ-mental legislation called the Environmental Quality Act (the Act). The Act focuses on ground water protection and addresses drinking water quality, aquifer protection standards, requirements to apply technology to reduce discharges, and a state Superfund program.

Jan 1, 1988

By Gregg J. Hodges

The Stillwater pt-pd mine and flotation mill are located about 130 km (80 miles) southwest of Billings in Stillwater county, M6ntana~ The pt-pd ore zone stretches about 43 km (27 miles), but varies in thickness from 0 to 6 meters (0 to 20 feet, but generally 3-6 feet) and dips 55-90,degrees from horizontal. The ore is hosted in basic, layered igneous rocks containing about 1% sulfide minerals which include chalcopyrite, pentlandite, pyrrhotite, and minor pyrite. The pt-Pd minerals are intimately associated with these sulfide minerals and are found as precious metal sulfides, tellurides, bismuthnides, and arsenides as well as native Pt metal. Approximately 90 different precious metal minerals have been found, but about 80% of the pd is in solid solution in the pentlandite. The ore assays about 0.1% Cu, 0.1% Ni, 6.2 g Pt/tonne (0.18 Troy ounce Pt/short ton (opt)), 21.3 g Pd/tonne (0.62 opt Pd), 0.21 g Au/tonne (0.006 opt Au), and 0.21 g Rh/tonne (0.006 opt Rh). The ratio of pd to Pt in the Stillwater ore and concentrates is about 3.5.

Jan 1, 1988

By T. J. DeMull

AMAX's Sleeper Mine uses conventional cyanidation milling and heap leaching techniques to produce gold. Since milling operations commenced in March 1986, average ore processing rates have improved from the design rate of 455 tonnes per day to more than 720 tonnes per day. Heap leaching was added to the process facilities in September 1986 at a design rate of 1,500 tonnes per day, and current heap leaching rates exceed 2,680 tonnes per day. Presented are descriptions of the Sleeper processing facilities with emphasis on the crushing and grinding circuits, a review of the selection of crushing and grinding equipment, and a summary of operating performance during the first 16 months of operations.

Jan 1, 1988

By John E. Auten

The computer program "Spike" is an "expert-rule based system" designed to fulfill two requirements. 1) acquaint unfamiliar personnel with big hole drilling techniques and 2) to stimulate the "old hands" in solving drilling problems. "Spike" will not make anyone a drilling expert The best way to understand a computer program is by example, but first some explanation of an? "expert-rule based system", As the name implies, the program tries to imitate a human expert. Unlike a normal computer program which uses a list of instructions to follow in a set order, a rule-base program has a collection of independent rules without an explicit list of things to do, one after the other. This type of program was mandatory to accommodate the ever changing situations and corrective actions that more accurately duplicate actual drilling operations and the advise of an experienced drilling expert.

Jan 1, 1988

By Don S. McCoy, W. Joseoph Schlitt, Donald B. Swanson

Introduction Contract miners have long played an important role in the minerals industry. Historically, these were individuals who worked as underground miners and were paid by the ton or the day. These hardy types still ply their trade in the industry. However, today the term "contract miner" generally refers to an independent contractor who supplies the people and equipment needed to conduct surface mining operations for an owner or lease holder. At one time or another, contract miners have probably handled virtually every mineral commodity from sand, gravel, and stone quarrying to mining uranium and precious metal ores. In today's market, though, contract mining appears to be concentrated in just a few areas. These include precious metal mines, various types of solid fuel operations, and reclamation of abandoned mines. This article covers market areas, contract mining organizations and services, and their advantages and disadvantages. Gold and silver mines Although exact figures are not available, contract mining represents a significant element in the precious metals segment of US mining. For gold and silver, the growth in contract mining appears to be paralleling the overall growth in mining activity itself. Nevada is the largest gold producer in the US. The latest available data (1985) on open pit gold/ silver mines is summarized in Table 1 (Nevada Division of Mine Inspection, 1986). These figures show that contractors mined nearly half of the ore in 1985. Total tonnage mined, of course, was much higher for both owners and contractors. Assuming an average stripping ratio of 2.5 to 1, the total daily mining rate for the contractors was more than 145 kt (160,000 st). This translates into a contract mining rate of about 36 Mt/a (40 million stpy) based on 250 operating days a year. This approximate 50-50 split between owner and contractor also appears to hold for the future. Metals Economics Group (1987) published a survey of 51 short-range and 54 long-range precious metal projects being considered throughout the US. Contacts with owners, requests for proposals, and past corporate philosophies all suggest that about 55% of the open pit operations scheduled for the near-term will be contract mined. This represents an estimated 26 kt/d (28.5 stpd) of ore. A similar assessment of the long-term projects indicates that about 12 kt/d (13,000 stpd), or just under 50% of the open pit tonnage will be contract mined. There are several reasons why gold and silver represent such an attractive opportunity for contract miners. One is that many properties are owned or leased by individuals or partnerships that are essentially entrepreneurial. Many of these owners or lease holders have minimal mining experience. They must therefore either rely on contract mining organizations, sell an interest in the project to another mining company that will become the operator, or hire an experienced management team. For about the same reason, junior mining companies also represent good prospects for contracting. This is because most junior companies focus on exploration. They would prefer to spend their generally limited funds on drilling programs. Thus, they tend to minimize additional capital requirements by using contract miners or farming out the property to another mining company. Another good reason for using contract miners is the size of the deposit. Many properties are so small that their reserves will not support the capital expenditures

Jan 12, 1987

By E. C. Ekedahl, R. J. Heath

Introduction Potassium, together with nitrogen and phosphorous, is an essential nutrient required for growth. Since all living things need potash, the major demand for potash - about 95% of the total - is as a fertilizer. Agricultural productivity has increased dramatically in recent times. This increase in crop yields requires substantial amounts of added nutrients to keep the soil fertile. It follows then that potash will always be in demand. There is no substitute. Other fertilizers that contain phosphorous (P) and nitrogen (N) are complementary and not competing products. Fireplace ashes (pot-ashes) have a relatively high potassium content. Their value as a fertilizer had been recognized for centuries. But today's potash industry did not begin until deposits of potassium-rich ore were discovered and exploited in Europe during the 19th century. Canadian potash development Potash in Saskatchewan was first recognized in 1943. It was discovered as a byproduct of an oil exploration program. But it was several years later before the existence of a major commercial deposit was acknowledged, and not until 1951 that the first attempt at development occurred. That attempt was unsuccessful. The shaft flooded and was abandoned. It did, however, demonstrate the need for new technology to penetrate the waterlogged Blairmore layer. This was eventually developed and the first mines were brought into production in the early 1960s. Once the technology was available, and the extent and quality of the potash beds became known, a number of companies proceeded to develop mines. By 1970, seven mines were in operation and three more were nearing completion. Combined, total capacity then was 7.6 Mt/a (8.4 mil¬lion stpy) K20. At that time, world potash consumption was about 15 Mt/a (16.5 million stpy). This increase in supply from Canada produced a large potential surplus that shattered the prevailing balance between supply and demand. Although world demand increased steadily throughout the 1960s and early 1970s, it was several years before world supply and demand were again in balance. Saskatchewan capacity has been expanded a number of times. It now stands at 10.7 Mt/a (11.7 million stpy) K20. Actual production has not approached this figure, however. Two new mines in New Brunswick have recently been built with a combined annual capacity of 1.2 Mt (1.3 million st) K20. Total Canadian capacity of about 12 Mt/a (13 million stpy) now amounts to 30% of world capacity. Central offshore marketing organization Canadian Potash Exports Ltd. (Canpotex) was created in 1970 as the offshore marketing organization for Canadian producers. Canpotex is owned by Saskatchewan producers and is their exclusive marketing organization for offshore business. Each company handles its own sales in Canada and the US, but all sales to other markets are handled through and by Canpotex. The Saskatchewan industry has an ore body of a size and consistency unmatched anywhere in the world. Large efficient mines have production costs that compare favorably with other producing countries. On the minus side, Saskatchewan is remote from most major markets. It therefore needs the ef¬ficiencies that stem from one organization that coordinates all offshore shipments and minimizes distribution costs. Agriculture guides potash market In the period following World War II, potash was a classic growth industry. World demand increased each year from 1945 to early 1970s. Since then, demand has been more erratic. Some years show substantial increases, but are followed by significant declines. For about the last decade, the pattern has been unclear and future demand has become correspondingly difficult to predict. North America and Europe together account for about 40% of the world potash consumption. In both areas, farming is characterized by surplus production, declining crop prices, and expensive government support programs. Under those circumstances, farmers respond by minimizing input costs. Fertilizer is one of the items they reduce. Potash is retained in the soil. It is possible to reduce potash application with no immediate deterioration in crop yield. The lower yields occur only when potash levels are depleted. So, farmers can econo-

Jan 12, 1987

By M. E. Gershon

I would like to congratulate Professor Gershon on an idea that is obviously valuable and is certainly new to me. It has, however, to be further developed, in that one can get fallacious results by limiting oneself to positional weights. In the example problem, the positional weight of one block was 8.6 (the 8.0 value in the paper was incorrect) for 36 units in the cone, for a mean block value of 0.239. The positional weight of the second block was 4.4 for 15 units, for a mean block value of 0.293. Surely one would expect the second block to be rated higher. Additionally, the time value of money adjustment cannot be determined by depth, because the time that a block is mined is determined by the mining sequence, not depth. Figure 1 shows a slightly altered version of Professor Gershon’s pit. The overall value of the pit is the same, as are the total values under each of his blocks. The values in the right-hand cone have been reversed top to bottom, and the values in the rest of the pit adjusted to keep the central cone total unchanged. All values have been multiplied by 10. Figure 2 shows the sequence of mining, at three blocks per year, for Professor Gershon’s pit, and Fig. 3, the sequence for a pit under the other block. Table 1 shows the value and discounted value (157. ) of Professor Gershon’s pit, and Table 2 shows similar values for the second pit. It is apparent that the second pit schedule is more valuable than the first.

Jan 12, 1987

By Z. D. Hora, W. N. Hamilton

Introduction Some unique opportunities exist for industrial minerals in British Columbia and Alberta. The region's diversified geology, particularly in British Columbia, offers favorable environments for a rich variety of mineral resources. Many minerals have been produced for years. For some, however, the level of production is far less than the potential. Others have had production in the past, but are not currently produced. Still others are known to exist and may have been actively prospected. But they are not yet developed. In addition, a number of speculative possibilities have recently come to light. The potential significance is not fully confirmed, but is suggested in showings in favorable geologic settings. Location and geography British Columbia and Alberta are the westernmost provinces in Canada (Fig. 1). The region overlaps two major physiographic divisions of the country, the Cordillera and the Interior Plains. It also takes in a small segment of the Canadian Shield on the east. The entire territory is greater than 1.6 Mkm2 (618,000 sq miles). Most of British Columbia lies within the Cordillera, a mountainous belt some 800 km (500 miles) wide. The belt is made up of three main physiographic components, the Eastern, Interior, and Western subdivisions. The Eastern subdivision embraces the rugged, linear ranges of the Rocky Mountains, elevations between 2600 and 3300 m (8530 and 10,800 ft). They form a 100-km (62-mile) wide band straddling the BC-Alberta border and extending northwest across northern British Columbia. The Interior subdivision includes several ancient mountain ranges but is dominated by an intermountane plateau area of low relief (average elevation 1200 m or 3900 ft). The Western subdivision is dominated by the Coast Mountains (elevations between 1800 and 4000 m or 5900 and 13,123 ft). These form a band about 175 km (110 miles) wide into which are sculptured the spectacular fiords of the BC coastline. Alberta lies largely within the Interior Plains, a prairie region of low to moderate relief (elevations between 200 and 1200 m or 650 and 3940 ft) formed of nearly horizontal bedrock strata. The Plains surface rises gradually to the southwest toward the deformed belt of the Rocky Mountains, where the bedrock strata are upturned, folded, and faulted. To the east, the Plains merge with the Canadian Shield, which exposes the Precambrian crystalline basement of western Canada. The total population of the BC-Alberta region is about five million people. Minerals, forestry, and agriculture are the primary industries here. It has well developed infrastructures to service these industries. British Columbia is third among the Canadian provinces in metal mining - $1.1 billion in 1985 - and first in forest products. It is also second in hydro-electric power development. Alberta leads all provinces in total mineral production, largely due to its extensively developed petroleum and natural gas resources - $26.2 billion in 1985.

Jan 12, 1987

By D. W. Scott, D. G. Minnes

Introduction Ontario's diverse industrial mineral resource base includes structural minerals such as sand and gravel, crushed stone, building stone, clay, shale, limestone, and dolostone. These resources are used to produce aggregates, brick, metallurgical stone, fillers, cement, lime, and other construction materials. The majority of the operations are in deposits of Palezoic and Quaternary age in southern Ontario, close to the major markets. Province-wide, there were more than 140 Mt (154 million st) of aggregates produced in 1985. About 115 Mt (128 million st) of that was produced in southern Ontario with the rest being largely from Crown land in northern Ontario. Structural industrial minerals account for more than 80% of the value of total industrial mineral production. The remaining 20% is accounted for by the nonstructural minerals, such as salt, which is produced in the southwestern part of the province. A host of other nonstructural industrial minerals are known. Production, though, is currently restricted to calcite, gypsum, quartz, talc, nepheline syenite, and byproduct metallurgical sulfur products (Fig. 1). Major production is close to the large markets of urbanized southern Ontario and the northeastern and northcentral US. With an abundant variety of industrial mineral resources and the large population within 650 km (400 miles) of most deposits, the market offers great potential. Ontario's nine million people accounted for about 35% of Canada's entire $476.3 billion gross domestic product in 1985. This equates to about one-third of the nation's buying power being within a 200-km (125-mile) radius of Toronto. This major concentration of industrial and economic activity has resulted in a well-developed industrial minerals industry that fulfills most of the structural industrial minerals demand in Ontario. Nonstructural industrial minerals are similarly well placed to compete in this high demand area. Although Ontario manufacturers still import some of these materials, Ontario products are achieving significant market share. And, they serve the needs of neighboring provinces and states. Present production and trends Ontario has traditionally produced significant amounts of industrial minerals. This produc¬tion had a value of $956 million in 1984 (Table 1). Structural materials production in 1985 and 1986 approached or exceeded levels not seen since the early 1970s. Many new products have been developed using these raw materials. The industry is becoming concentrated in the hands of several large companies, mainly four large cement com-

Jan 12, 1987

By James L. Weeks

Introduction This paper attempts to summarize some of the major criticisms of drug testing. Eight problems with drug testing are discussed. These are: • It does not measure something employers have a reasonable need to know, • It is a distortion of priorities, • Drug use is not known to be associated with increased risk of occupational injuries, • Drug testing is proposed as a dangerously simplistic solution to poorly conceived problems, • In the absence of safeguards, it is unacceptably inaccurate, • In the absence of treatment commitments and confidentiality protection for persons dependent on drugs, it is an unethical practice of medicine, • Drug testing is an invasion of privacy, and • It will have a negative effect on treatment of persons with drug or alcohol dependencies. Employers' need to know It does not measure something employers have a reasonable need to know. It is reasonable for employers and fellow workers to want to know if workers are functionally impaired (intoxicated) while on the job. Drug testing does not measure impairment. It measures the concentration of drug metabolities in urine or blood. Unlike measurements of blood alcohol concentration (BAC), drug metabolites are not correlated with impairment or intoxication. They indicate only drug use in the one to two weeks before a urine sample. And, in some instances, they indicate chronic use. Impairment caused by drug use, on the other hand, occurs immediately and declines rapidly within hours. Drug metabolites may linger for days afterwards. Drug metabolite concentrations in urine are a function of (Morgan, 1984; Schartz and Hawks, 1985; MMWR, 1983): • the amount and purity of drug consumed before taking the test, • when the drug was consumed, • whether the person was a chronic user, in which case a certain amount of drug metabolites would be stored in body fat and slowly released, • the person's metabolic rate, and • for metabolites in urine, any dilution effects of urine. Only the first two factors has

Jan 11, 1987

By Jim Wilcox

Introduction In 1979, rumors of a developing drug problem within IMC Fertilizer's Carlsbad, NM workforce began to surface. For the next two years, a management team contacted local, state, and federal regulatory agencies that had the potential resources to help combat this apparently escalating problem. These contacts included the local police department, the county sheriff's office, the federal Drug Enforcement Administration, and the Mine Safety and Health Administration (MSHA). IMC approached each agency with two proposals. The first required the agency provide an undercover agent for placement in the company's underground facilities. The alternative required the company to provide the agent with the participating agency lending necessary legal expertise and guidance to accumulate the necessary data. MSHA regulations prohibit intoxicating beverages and narcotics on mining property. They also forbid persons under the influence of alcohol or narcotics from working in or around mines. The agency could not, however, help with this problem. The remaining agencies were sympathetic, but were unwilling to assist in implementing either program, citing legal implications. Without exception, these agencies not only refused to provide help, they discouraged any type of undercover operation, searches, drug screenings, or using dogs trained in narcotics detection. As law enforcement officials, they reasoned that any such program constitutes potential civil rights violations. An attorney advised IMC that it was not required to adhere to the same guidelines as law enforcement and regulatory agencies. It was his legal opinion that the company could conduct an undercover operation. But he recommended finding a private firm that specialized in this type of investigation. An experienced firm should have the expertise to conduct the operation and avoid the legal pitfalls that could be encountered. The management team agreed with the attorney and elected to hire a private firm. After extensive research and evaluation, three reputable companies were contacted, advised of the needs, and asked to submit a proposal. Their initial response was enthusiastic. None, however, submitted a proposal. Each was unable to locate a qualified agent willing to work in an underground environment. Privacy and civil rights At this point, it was apparent that an undercover operation was not feasible due to the lack of inhouse expertise and the lack of outside assistance. After more research, it was concluded that the only viable options left were the ones that the law enforcement community had earlier discouraged. These options included locker and personal searches, use of dogs trained in narcotics detection, and drug screening or testing. The management team evaluated the pros and cons of locker and personal searches. They concluded that if conducted properly, this approach could eliminate the problems. The potential legal liabilities, however, appeared to be tremendous. Strict guidelines would have to be adhered to in order to avoid invasion of privacy and civil rights violations. This meant announcing locker searches before conducting them and obtaining written permission from an individual before searching his person. Although the group was reluctant to lose yet another option, it was concluded that conducting searches under these conditions would be ineffective. It would also convey the message to the workforce that the substance abusers had the upper hand. This author was extremely critical of this legal opinion at the time. I have since concluded that the attorney was correct. This occurred in mid-1982. Court decisions of that era indicated the legal and political climate was sensitive to these issues. These activities would probably have been prohibited even if they were

Jan 11, 1987

By Suzanne Smith, Frank C. Fantauzzo

Introduction America's workforce is the heart of the nation's economy. The health of its members is a matter of national priority. Statistics show that the most common cause of job difficulties is excess use of alcohol or other drugs. Up to 75% of these troubled employees can be returned to productive careers at little expense and with great benefit to their industries. Of the 1.5 million private corporations in the US, only about 500 have alcohol treatment programs. Even fewer have drug abuse programs. It is time that the myths and prejudices surrounding alcohol and drug abuse are dispelled and help is offered. Corporations and labor unions are now finding that programs to treat these diseases benefit both the employees and the industry. The employee derives health and job security. The company sees increased productivity and decreased costs in sick pay and absenteeism. Unfortunately, three-fourths of the nation's 90.5 million workers are employed in establishments of fewer than 500 employees. In these settings, it is unlikely that either management or the unions will take the initiative in developing programs. Alcohol alone affects the health and productivity of nearly 8% of any workforce. This translates to more than 5 million employees in small business. These workers present an opportunity and a challenge. Alcohol abuse costs the nation nearly $116 billion annually. Seventy billion dollars is attributed to lost production. Medical expenditures related to alcohol are estimated to be nearly $13 billion. The National Institute on Drug Abuse (NIDA) estimates the cost of substance abuse to industry to be in excess of $4 billion a year. In addition to its economic impact, substance abuse has serious personal and social consequences. The mining industry experiences the same exposure as other industries to alcohol, drug abuse, and other employee problems. However, the existence of these problems poses special hazards because of the unique conditions found in mining. Mining has many safety and health hazards. Employees must have full control of their faculties and give full attention to the tasks at hand. Designing employee assistance programs An Employee Assistance Program is a cost-effective, confidential, early intervention system. It is designed to help employees

Jan 11, 1987

The Mine Safety and Health Administration (MSHA) academy in Beckley, WV, received enquiries from various segments of the mining industry concerning alcohol and substance abuse in the mining industry. The MSHA Director formed a committee, the Mining Industry Committee on Substance Abuse (MICSA), to deal with these enquiries. The committee met in April 1985 at the mining academy in Beckley. The MICSA committee expanded its membership to represent labor, management, and government agencies affiliated with the mining industry as well as government agencies dealing with alcohol and drug abuse. This expanded 18-member committee met for the first time in July 1985. At that time, two cochairmen were elected, one from labor and one from management. MICSA has spent time on education by sharing information on the issues and by calling in outside experts for advice and consultation. The committee also initiated several projects. These include a resource manual on substance abuse and employee assistance programs. Mine operators and labor unions can use these programs as guides. MICSA is also assembling statistics on substance abuse, particularly as applied to mining. And the committee commissioned an Education film, Substance Abuse, Is It Our Problem? (The results of a survey on drug use, given in Table 1, suggest that substance abuse may indeed be a problem.) The educational film, produced by MSHA, is an introduction to the problem of substance abuse in the mining environment. The film encourages mine operators, labor unions, and miners to analyze their individual circumstances to determine whether a problem exists. The film also offers ways to deal with the problem. And the film invites the mining industry to request additional information from MICSA. There is no single approach to substance abuse that will fit the need of every mining operation. As with any health, safety, or production problem, remedies must be site specific. MICSA's aim is to channel ideas to those who seek to help employees in a mining environment who seek to rid themselves of alcohol and substance abuse. As stated more formally: The Mining Industry Committee on Substance Abuse represents the efforts of labor, management, and government. The mission of the committee is to make the mining industry aware of the problems resulting from alcohol and other drug abuse and to recommend possible methods to remedy the problem. The function of the committee is to assist the industry in developing programs and resources to recognize and provide help for troubled employees, and thus reduce the risk of accidents, while lower absenteeism and increasing productivity.

Jan 11, 1987

By Paul D. Klipfel

Introduction Mineral exploration interest, principally for gold, in the south-western Pacific has surged to new proportions. This is primarily due to the application of epithermal exploration concepts in the Australian-Oceana region. Other factors that have contributed to the high level of exploration interest include governmental policies supportive of mineral exploration, along with relative ease of tenure access and a relatively short bureaucratic process. This paper highlights exploration and development activities in the North Island of New Zealand, Fiji, Vanuatu, the Solomon Islands, and Papua New Guinea (Fig. 1). It provides a framework to understand the overall recent enthusiasm that has been brought to the south Pacific by explorationists. Through these recent developments, it is clear that the south Pacific region will become a significant gold producing area and thereby worthy of attention and study. Papua New Guinea alone is the free world's seventh largest producer (Table 1). And, with the addition of production from deposits presently being developed, this status is likely to be raised. History Gold was first noted on various Pacific islands in the late 1500s by Spanish explorers. They thought they had reached the legendary King Solomon mines. Since then, the history of prospecting in the southwest Pacific has coincided with the colonization of the region. Settlers in New Zealand extensively mined alluvial and lode gold deposits starting in the 1850s. The spread of European colonization to the more remote Pacific islands from 1880-1940 was accompanied by varying degrees of prospecting activity by planters, traders, and settlers. Some were successful, others may have been successful, but never returned due to hostile indigenous peoples or disease. In general, records of such prospecting activity are meager and exploration leads are, in some cases, gained through local village folk memory. Most early discoveries were alluvial finds. These led to placer operations, particularly in New Zealand, the Solomon Islands, and Papua New Guinea. Continued prospecting located lode deposits such as the Morobe Gold-field of Papua New Guinea, the Coromandel Peninsula of New Zealand, and the Emperor of Fiji. Some areas were prospected thoroughly. Yet others, such as Vanuatu, remained relatively unexplored until the present exploration surge began. During World War II, interest in minerals was diverted. It was renewed significantly until the middle 1960s and early 1970s when regional porphyry copper exploration was conducted.

Jan 10, 1987

By Jerry D. Pfarr, Gary Loving, David G. McDowall

Introduction The Open Cut is one of the best known landmarks in South Dakota's Black Hills. It is the site of the original discovery of the Homestake ledge, or lead, in 1876. Between that time and 1945, the Open Cut produced about 36 Mt (40 million st) of gold ore, the majority of which was drawn from underground operations. In 1981, a drilling program was undertaken to determine how much ore the old timers left behind. The results of this study indicated an ore body made up of broken and caved ground, and solid blocks in pillars and crowns. Reserves are estimated at about 6.8 Mt (7.5 million st) of gold ore, grading at 4 g/t (0.116 oz per st). Total tonnage of material, including waste, is estimated at more than 60 Mt (66 million st). The mining plan is a combination open pit and underground operations. The bottom 78 m (255 ft) will be mined by the underground panel-caving method. The open pit was designed as a contractor operation up to the expected milling stage or the point of sustained ore production. The pit was designed to avoid disturbance of US Highway 85 near Lead, SD. In 1983, the South Dakota Board of Minerals and Environment approved the mining and reclamation plan. Test mining began in the north of the Open Cut using open pit methods. Upon completion of the test pit, Homestake Mining's board of directors approved an expanded mine plan. They committed an additional $27.1 million to prestrip the ore body that is expected to yield 23 t (750,000 oz) of gold. Project life is estimated at 15 years. Exploration program In early 1980, 10 diamond drill holes were drilled from the surface in the vicinity of the east side of the Open Cut. The reserves delineated by that drilling were too small to justify their development. A continuation of this study attempted to quantify the tonnage remaining in the bottom of the Open Cut in the crushed remnants of old stope-and-crown pillars. This was originally thought to be minable by improved drawhole methods using highly mechanized procedures. By early 1981, however, thinking turned toward surface mining methods. The effort to quantify minable ore tonnage ultimately involved drilling 385 reverse-circulation rotary drill holes. These were drilled from August 1981 to March 1983 in several groups of holes. Each group, or drilling program, had a slightly different immediate goal or purpose. The holes were drilled to various depths using truck-mounted Drill Tech 40 drills with doublewalled 76 mm (3 in.) pipe with 134 mm (5.25 in.) three-cone rotary bits. Initially, wet drilling was employed using a cyclone collection system. Since cutting recovery was not as high as it should have been, all subsequent drilling was dry. The cuttings were collected and deposited by way of a cyclone into the sample bag. The pickup for the cuttings using the three-cone bits was about 50 mm (2 in.) above the bottom of the hole. Overall cutting recovery for the drilling program was estimated at 75%. Samples were taken on each 1.5 m (5 ft) of hole drilled. Each sample was split into three 48-g (1-2/3 assay ton) charges. The accepted value was the straight average of the three charges. Because of the known "nugget effect," assays were nearly impossible to duplicate. Therefore, to validate the regular assays, a series of screen fire assays were run. Based on this method of assays and checks, it was concluded that 10% more ounces would be produced than indicated by mine grade. Test pit The northernmost portion of the mine as planned is known as the Terraville test pit. This portion was mined ahead of the rest and separately. It provided answers to questions on slope stability, reserves correlation, mill recoveries, mining costs, and surface mining conditions in various weather and ground conditions since many boulders and much timber were expected. The mining plan for this portion of the pit was successful. More ore was mined than was expected. Mixing of Open Cut ore with underground ore in the mill feed was successful. Impact on the surrounding communities

Jan 10, 1987

By Walter R. Curtner

Many, if not most, of today's pollution liability claims are related to events ("occurrences") that happened in the past. This fact creates an opportunity to obtain a large amount of insurance coverage at essentially no cost. Furthermore, in many cases, this insurance coverage is readily available. Scenario #1 For some 15 years, an underground gas tank has had a slow leak. The leak has now been discovered because the gas has contaminated nearby wells. As a result, an expensive $1 million cleanup is required. In addition, a liability suit has been filed for damages due to the contamination of nearby wells. Consequently, legal expenses are being incurred. Are all of these actual and potential costs insured? Obviously, if you have a pollution liability policy in place, the above costs will probably be insured. I say probably because business liability policies are not uniform. But, what if you don't have a pollution liability policy and what if your current general liability policy excludes all pollution liability (as most of them do today)? Under these circumstances, it first appears there is no insurance for this $1 million cleanup and liability suit. But this is probably not the case. You may well have insurance coverage, and you may well have much more insurance coverage than you ever expected. And, the insurance that I'm referring to is already in place. You simply need to find it and learn how to use this insurance - I'm referring to your old policies. In many cases, old liability insurance policies provide coverage for claims made today, because these policies were written on an "occurrence" basis of coverage. In fact, most still are written this way. This means that the insurance policy covers bodily injury or property damage liabilities (as defined in the policy) arising out of' "occurrences" or accidents that happen during the policy period regardless of' when the claim for damages is made. Therefore, for insurance purposes, the key question is: when did the "occurrence" take place? If someone falls and breaks a leg, that is clearly an "occurrence." The broken leg occurrence is, therefore, insured by the liability policy that was in existence at the time of the fall - regardless of when the claim or suit is filed, if ever. However, the answer to this question is seldom an easy one when you are looking at a pollution claim. In our scenario, the tank had a slow leak over 15 years, but property damage was not discovered until now. The question of when the "occurrence" (as defined in the insurance policy) took place has been litigated and continues to be litigated in many courts across the country. But, most often the answer has been that, for insurance purposes, the "occurrence" is the entire period that the tank was leaking (15 years), even though the contamination to the water was not discovered until 1987. This means that the person or company that is insured can potentially use all of its general liability policies (if they are "occurrence" policies, and most were), which were purchased during the 15 years from 1972 until 1987. And, these policies will potentially insure all of the claims and related exposures that arise out of this leaky underground gas tank. Scenario #2 In our first scenario, the claims and expenses were insured by past general liability policies because the claims arose out of events in the past, which, in turn, caused damage. Let's look at another example. In this scenario, Company XYZ has received a request to help clean up a landfill site because 10 years ago, XYZ dumped some toxic substances at the site, which was totally legal at the time. XYZ has not dumped anything at the site since this time. Nevertheless, XYZ is now being required to contribute $2 million to the cleanup of this site. In this scenario, if you had purchased "occurrence" general liability policies 10 years ago, these 1977 policies would (potentially) apply to the current $2 million cleanup claim. And, the reason is that the "occurrence" leading to the 1987 claim took place in 1977.

Jan 10, 1987

By Kevin G. Stricklin

Introduction Continuous monitoring techniques have been used in the US and abroad for many years. A continuous miner has a monitor that measures methane and automatically gives a warning if the methane exceeds 1%. It deenergizes the continuous mining machine automatically at a maximum concentration of 2%. Main fans are also continually monitored to ensure operation. Alarms may also be given at a remote location should a fan slow or stop. The systems being developed can continuously monitor various gases and equipment throughout the mine and transmit pertinent data to a surface monitoring station. At this station, conditions throughout the mine can be monitored and, in some instances, controlled. These are known as Mine Wide Monitoring Systems (MWMS). History The use of environmental monitoring systems began in 1976 when a federal court approved the petition of modification to use belt air at the face. The first mine to receive a modification did install a system to supplement existing safeguards. Later, the Mine Safety and Health Administration (MSHA) and the US Bureau of Mines (USBM) conducted tests dealing with the use of belt air. Findings from these tests are being used to set guidelines as requirements of a petition. These requirements include: • Velocity of air has to be 0.25 to 1.5 m/sec (50 to 300 fpm); • Monitors will be installed at each belt drive and tailpiece and at intervals not to exceed 610 m (2000 ft); and • An alarm level of 10 ppm, above the ambient level is appropriate. The early uses of environmental monitoring could only be used outby the last open crosscut. That may be a reason for an initial slow growth of these systems. In June 1982, MSHA began evaluating systems that could be used in returns to ensure that monitoring systems being used in areas where permissible equipment is required does not of itself pose an explosion hazard. This is known as the Mine Wide Monitoring Systems Evaluations and Sensor Classification program. The evaluations and classifications granted are based on electric currents and voltages. Use of mine wide monitoring systems The environmental aspect of MWMS in today's coal industry deals with carbon monoxide (CO), methane (CH4), and air velocity. Just as all mines are different and encounter different problems, the MWMS are diverse and can be used to provide necessary data in all areas of coal mines. Mine operators in an ultragassy seam, for example, may be concerned with monitoring methane, while a mine that used diesel equipment may want to continuously monitor for diesel contaminants. In a mine with roof fall problems, airflow monitors may be helpful as an indication of whether the air is flowing in its normal course and at its normal volume. Today's MWMS can monitor any or all of these parameters. Most systems can be expanded as mining needs require. For example, a mine is now being monitored for methane and five years from now CO monitoring would help increase safety. It may be possible to use the same system by adding additional equipment. In the US, 30 environmental monitoring systems were installed from May 1985 through May 1986. In 1984 and 1985, there were 38 and 44 environmental monitoring systems in operation, respectively. Due to mine closings, 11 of these are no longer in use. However, the number of mines using environmental monitoring systems increased to 63. Use of these systems are not limited to any geographic area or

Jan 9, 1987

Remote methane detection State and federal regulations require frequent measurements to verify that safe methane levels are maintained in underground coal mines. Ventilation control is the primary means of maintaining safe methane levels. In the immediate face area, where the highest methane levels occur, methane measurements are required every 20 minutes during active mining. To perform these measurements, temporary roof supports must be erected. This allows a miner to reach the face. There a hand-held methanometer is used to make the measurements. This procedure is time consuming and potentially hazardous. To facilitate the measuring process and reduce the miner's exposure to roof falls, the US Bureau of Mines has developed a prototype optical device. It can measure methane remotely from distances up to 12 m (40 ft). The device uses two infrared signals, reflected from the coal face, rib, or roof. One signal is absorbed by the methane, the other is not. The ratio of the two signals determines the average methane concentration in the face area. The prototype detector has also been successfully tested at the Lake Lynn, PA Laboratory. Instantaneous responses were obtained for methane in the ventilation airflow and for methane layered near the roof. Conventional methanometers required from five to 25 seconds to respond to the methane in the ventilation airflow. They did not respond to methane in the roof layer. For more information about the Bureau of Mines' remote detection research, contact Richard W. Watson, US Bureau of Mines, Pittsburgh Research Center, Box 18070, Cochrans Mill Road, Pittsburgh, PA 15236 or call (412) 892-6630. Ignition suppression system The incidence has increased of fractional spark ignition at the mine face. One reason is the advent of mechanical mining. Another is the more difficult ventilation conditions associated with deeper and more extensive underground workings. To cope with the problem of frictional ignition, the Bureau of Mines initiated research to develop a system that would provide rapid detection of incipient methane-air ignition. Then, rapid dispersion of a quenching agent would ensure that the methane flame was extinguished while it was still relatively small. This concept was successfully demonstrated by suppressing explosions in the Bureau's Bruceton, PA experimental mine. But the bulkiness of the early storage-dispersal system proved impractical to retrofit onto face equipment. In a cooperative effort by the Bureau and the Mine Safety and Health Administration, a more compact system has been developed and is being tested. A continuous mining machine has been equipped with four 1.8-m-long (6-ft-long) and two

Jan 9, 1987

By Thomas D. Kaufmann

Introduction What drives the price of gold? Supply and demand, of course. But in ways far different from the forces that drive the prices of other major metals, such as steel, aluminum, and copper. Gold, in fact, is one of the few commodities where both buyers and sellers are happy when the price goes up. Current production, production costs, and variations in production have little influence on its price. Gold inventories are so tremendous that current production has small impact on the amounts available to the market at any time. Worldwide gold inventory and production The world's inventories seem to be between 78 and 98 kt (2.5 and 3 billion oz). Since biblical times, the gold miners of the world have produced about 98 kt (3 billion oz), mostly in this century. Only small amounts have been thrown away and most of it - more than 78 kt (2.5 billion oz) - remain in bullion, coins, or jewelry. About 40% is held by central banks and other governmental authorities, 30% by private individuals as bullion or coins, and about 30% as jewelry. Except for some of the jewelry and the few industrial applications, this inventory is constantly available in marketable form at a price. By comparison, gold production is indeed small. The US Bureau of Mines estimates that the world produced 1.5 kt (50 million oz) of gold in 1986. Consequently, production increased world inventories by only 2%. Variations in production have a negligible or very short-term effect on the supply and, consequently, on the markets for gold. Although South Africa mines about 40% to 50% of the world's annual production, continuing labor strife there does not seem to have ruffled gold prices. Determining gold's price Gold prices, however, do determine cutoff grades in the mines and, thus, do influence production. Nonetheless, changes in production have little impact on the inventory supply. Consequently, it has small influence on the price of gold on the market. With a fairly stable supply, price changes are driven by changes in its demand. Unlike other metals, very little of the demand for gold comes from industry. Dental, electronic, and other industrial uses for gold consume less than 46.6 t/a (1.5 million oz per year). It would be safe to assume that such uses are less than 124 t/a (4 million oz per year) for the entire world. Variations in the 124 t (4 million oz), compared to a supply of 78 kt (2.5 billion oz) of supply can have only a negligible effect. Production net of industrial uses adds perhaps 1% annually to world inventories. This could, in time, affect markets. The increase, however, is mostly absorbed by population growth - more people wanting to own gold - and by gold being put in more attractive forms, such as coins. As an ancient Lydian king discovered, minting bullion permits

Jan 9, 1987

By G. W. Heunisch

G.A. Carmody and L.B. Anderson We wish to comment on the paper by G.W. Heunisch (MINING ENGINEERING, January 1987), which raised several important points regarding treatment of acidic waste waters. This paper confirms, in part, tests carried out by Allyn Corp. Allyn is the manufacturer of the proprietary product Alka-Ment, one of the materials that Heunisch tested. The first point is the extreme sensitivity of the sedimentation rate on the nature of the treatment material used. This apparently results from differences in nucleation of the metal hydroxides, and is consistently higher for Alka-Ment. This decreased sludge volume is also observed when Alka-Ment is combined with flocculants, such as organic polymers (see Table 1). Our second point is to emphasize that Heunisch's work shows how dependent the sludge volume is on pH. It is common practice to overtreat AMD by raising pH to 9 or 10. This practice, in addition to being wasteful of material, actually decreases the density of the resulting sludge, probably by creating charged particles that do not readily coalesce. When treating with Alka-Ment, we recommend that the treatment be monitored by testing both pH and dissolved iron. For both tests, it is important to allow adequate time to elapse between treatment and measurement, so that dissolution of alkali, aerobic oxidation of iron, and precipitation of the metal hydroxides are nearly complete. Our tests have indicated that from 30 minutes to one hour is commonly required. Only in this way can a minimum pH be attained, with adequate treatment, denser sludge, and lower treatment rates achieved. Thirdly, Heunisch correctly recognizes that ASTM titration of Alka-Ment does not reflect the true treatment value available in a unit of Alka-Ment. Our work at Allyn indicates this is a most important consideration when evaluating various materials for the treatment of acidic waste waters. While we were unaware of Mr. Heunisch's work, we welcome comparisons between Alka-Ment and any competitive products readily available for field use. Allyn has hundreds of hours of laboratory and field data we are ready to share with interested parties treating acidic waste water.

Jan 9, 1987