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By Iain G. Bruce

The need to improve supply reliability while improving our environmental record during the past half decade of low metal prices has required the mining industry to prioritise expenditures. Quantitative Risk Assessments using third party reviewers and specialist risk management teams have assisted in identifying hazards that can both disrupt supply and impact the receiving environment. Graphical displays using risk ellipses can simplify the presentation of the results in a Probability-Consequence (PC) graph. Development of risk acceptability envelopes using readily available financial data superimposed onto the same PC space assists management to prioritise their risks and focus on risk reduction measures. Development of this system and examples of the successful implementation of the system from several recent projects are described.

May 1, 2003

By D. J. Reddish

The paper describes a case study where numerical modelling has been applied to predict potential risks associated with inflows of water in active mine workings from an overlying sandstone aquifer. The objective of the modelling was to predict the development of strata fractures and strains as the longwall panels were extracted and investigate their relationship to an sandstone aquifer. The numerical modelling study also included the investigation of the effect of mining on a fault that existed close to the start position of one of the panels. The potential effects of mining on the fault were undertaken by parametric studies adjusting properties for the fault and the relative position of extractions, which allowed the mine planner to position the panel layout accordingly.

May 1, 2003

By Francis Chartrand

The Kwyjibo deposit is an iron oxide Cu-REE-F-Mo-Au mineralization of Mesoproterozoic age located in the Grenville Province approximately 120 km NE of Sept-Îles, Quebec (Figure 1). Occurring along the SE margin of the Canatiche granitic complex, the deposit is composed of several polymetallic showings that are related to different textural facies of magnetite. The mineralization process at Kwyjibo is complex, and is divided into Early Granitophile, Magnetite, Main Polymetallic and Specular Hematite stages (Cayer et al., submitted for publication). The Main Polymetallic stage, comprising chalcopyrite, pyrite, fluorite, molybdenite and REE-bearing minerals, is superimposed on pre-existing magnetiterich rocks. Discovered by SOQUEM Inc. in 1993, the Kwyjibo deposit shares many characteristics with other hydrothermal polymetallic iron oxide deposits around the world. Foose and McLelland (1995) suggested that this class of mineralization could occur in the Grenville Province. However, only a few polymetallic occurrences are known to be associated with low-Ti iron oxide deposits in the Grenville. Kwyjibo is one of the most significant examples of a polymetallic iron oxide deposit to have been found in the Grenville Province to-date.

May 1, 2003

By D. McConchie

The use of Bauxsol? (physically and chemically modified alumina refinery residues) to treat acid rock drainage (ARD), and sulphidic waste rock and tailings, provides new options for managing some intractable environmental problems at both derelict and active mine sites. Treatment of ARD waters using the Bauxsol technology shows that the effectiveness of raw Bauxsol material can be enhanced by including modest amounts of selected industrial minerals or common chemical additives. The type and amount of additive required and the amount of the blend needed to treat the water depends on the initial composition of the water and the target water quality; for some ARD waters, optimum treatment may require one or more changes in the type or amount of additive used. Maximum treatment efficiency can be achieved only when a balance is maintained between the rate of trace metal binding and the rate of change in water pH; adding treatment reagents faster than can be accommodated by the reaction kinetics will not result in more rapid water treatment. This paper presents the results for treating several ARD waters to illustrate the importance of blend selection and treatment procedure. Although treating ARD water is often necessary, this strategy treats the symptoms rather than the cause. The best permanent solution is to treat the sulphidic waste rock or tailings such that they do not continue to oxidise and produce acidic metal-rich leachates; sulphide oxidation needs to be stopped or slowed to a rate that can be accommodated by normal environmental processes. Capping lined impoundments is not a solution because all caps and linings will inevitably fail some time in the future creating a nasty surprise for some future generation. Adding lime is also less than ideal because the lime leaches from the treated material; treatment often appears to be effective for a few years and then fails. Bauxsol technology offers effective alternatives to conventional liming and capping procedures and Bauxsol blend application rates and procedures can be planned to ensure that no acidic or metal-rich water can ever escape from the site. Bauxsol can be physically mixed with the sulphidic mine wastes or it can used to form subsurface permeable reactive barriers, or both. Bauxsol treated waste rock and tailings can be immediately and effectively revegetated. In this paper we present leachate quality and plant growth rate data for several sulphidic waste rock and tailings deposits treated using the new technology.

May 1, 2003

By F. Hassani

This Paper describes a sudden spill of rock waste used for backfilling from a waste pass at one of the underground mine in Canada thus causing a major failure/accident. The mine operator immediately launched a detailed investigation to understand the causes of this accident and develop procedures to prevent any recurrence of such events in future. The investigators from McGill University were invited to collaborate with the engineers at the mine to examine this accident. The events leading to the accident were studied and appropriate measurements were taken and samples of the waste material was collected for further test and analysis. The field visit and the interview of the witnesses allowed a detail documentation of the events. The sequences of events related to the incident together with the experimental results obtained in the course of the investigation is detailed. The waste material was characterised in the laboratory with regard to its behaviour in the presence of water. This information is then discussed and the failure mechanism involved in this accident is identified. The full recommendation as well as the immediate operational measures implemented by the mine to prevent future occurrence of such events are discussed and presented.

May 1, 2003

By Peter N. Calder

Long range mine planning involves developing a mining sequence that schedules the extraction of the ore and waste materials within a final pit limit. The objective is to define a sequence that best meets the defined strategic objectives. The main steps in the creation of an open pit mine plan are the final pit limit design, the design and sequencing of the mining phases, equipment selection and operating cost estimation. Flexibility is the key strategic element in developing a mine plan. Planning the extraction sequences and rates for the various mining areas is a challenging and demanding activity. It is often necessary to consider numerous alternative strategies and what if scenarios. The number of alternatives that can be studied with limited manpower and time resources is restricted. In order to investigate strategic aspects of mine planning, a system to generate workable mine plans rapidly is required. The concept of Visual Mine Planning is that the engineer can visualize the current plan, easily change a component of the plan, such as the annual cut-off grade schedule or the production rate within a particular Phase, and immediately see the effect on the mineralogical and cash flows. If the desired result is not achieved, a change is made and the effect is again immediately seen. This paper presents results of research in this area conducted at the Pontificia Universidad Católica de Chile. The work includes the examination of cut-off grade strategy, sequencing, blending, stockpiling and shovel-truck fleet requirements using simulation.

May 1, 2003

By Alim Ullah

Danieli entered into the Direct Reduction (DR) field in order to offer its clients complete turnkey facilities for steelmaking?from processing of raw materials through finished products. The Danarex® Process produces a passivated product, called the Supermetallic (SPM), without hot-briquetting. One of the main features of the Danarex® Process is its ability to produce approximately 50% of the Direct Reduced Iron (DRI) through reduction gas generated in a reformer and another 50% through recycling preheated furnace exit gas. Some other distinguishing features are: separation of carburising and cooling zones and the use of double bustle for better distribution of gas inside the shaft furnace. A pilot plant was set up at Hazen Research, Inc., Golden, CO in order to show that the integrated process works as expected and to obtain process data. The SPM obtained was of a very high quality, evidenced by metallization levels of 92% to 98%. The carbon content could be controlled between 1.5% to 4.0% by varying the operating conditions and approximately 75% of this carbon was present as Fe3C. The product was tested for inertness by Chilworth Technology, England, using UN standard tests and was found to be safe for outdoor storage and transportation.

May 1, 2003

By Dale A. Sketchley

The objective of Quality Assurance and Quality Control programs on advanced exploration projects is to ensure that data from sampling, assaying, and recording of geological observations are of high integrity for the purpose of obtaining reliable mineral resource and reserve estimates. National Instrument 43-101 Standards of Disclosure for Mineral Projects states that all scientific and technical reports must be prepared and certified by a Qualified Person in accordance with professional and industry standards following Mineral Exploration Best Practices Guidelines and Definitions, and Guidelines of the CIM Standards on Mineral Resources and Reserves. Additional information is given in Companion Policy 43-101CP and Technical Report Form 43-101F1. Although the Qualified Person must discuss and describe the Sampling Method and Approach; Sample Preparation, Analyses, and Security; and Data Verification; there is little specific information in the guidelines on Quality Assurance and Quality Control programs. Examples from the Oyu Tolgoi Cu-Au Project are given for optimizing sampling protocols, following proper sample preparation procedures, safeguarding sample shipments through chain of custody, ensuring quality of assaying with Round Robin monitoring programs, verifying transcribed data, and validating data with check assays to ensure high integrity for resource and reserve estimation. Oyu Tolgoi, also known as Turquoise Hill, is in the South Gobi desert, Mongolia, about 550 km south of the capital city of Ulaanbaatar, and 875 km northwest of Beijing, China. The project covers a major copper-gold system, which consists of the South West, South, Central, and Far North deposits, comprising high sulphidation and porphyry mineralization with oxide, supergene, and hypogene ore types. Exploration is done by multiple diamond drill rigs, and samples are prepared on-site and shipped to laboratories in Mongolia, Canada, and Australia for further preparation and analysis.

May 1, 2003

Overview n Why we audited the IRS n How we did it n What we discovered n What we learned n Where we are going next The unbroken chain of safety The Internal Responsibility System (IRS) The network of roles and relationships in a workplace, through which everyone works with mutual commitment to reduce or eliminate hazards.

May 1, 2003

By Zetti Gavelán

Globalization and the search for new ore deposits inevitably lead to investment in foreign markets. Investors need to be aware of the effect of their venture on regional, social and economic issues when they invest. Decades of detailed statistics from various sources can be integrated and analyzed to predict the social-economic impact of investment, thereby mitigating risk. To this end, the correlation among variables such as foreign direct investment into mining (FDIM), reserves, and socio-economic indexes is examined. The investigation focuses on South America from 1992 to 2000. Throughout the past decade, South America has benefited from capital investment from more developed countries. This huge investment by the mining industry has impacted the South American economies and can be measured directly using the FDIM. Other economic variables investigated include mining gross domestic product, direct employment, and human development indexes. The correlation is based on data compiled from the World Bank, international risk assessment agencies, the United States Geological Survey (USGS), and the information agencies of various South American countries. Initial analysis of the economic data suggests various expected outcomes. For example, foreign investors may disregard a measured, highly negative country risk in deference to the quality of its mineral resources. It is important to note that the standard measures of country risk published by investment analysts are not industry or investor-specific. In the case of the investor, the level of accepted risk is based on their managed investment portfolio. It is noted that arguments for level-playing fields may be the antithesis of globalization. The discovery and exploitation of ore bodies in a globalized environment necessitates the development of economic measures that standardize mining-specific risk variables and trends. The latest published information on the security of mineral investments in South America is investigated by integrating databases of economic, geologic, production, human indexes, and risk ranking.

May 1, 2003

By Paul G. Dunn

The planning of underground mines is a complicated process involving geological, engineering and operational constraints. MIRARCO is in the process of developing a 5D Mining Exploratorium where 3D mining models are combined with time (4th dimension) and costs (5th dimension). The mining exploratorium is a collection of external and inhouse software packages specifically geared to help underground mining companies arrive at better mine plans. This paper discusses the progress made in the development of the 5D Mining Exploratorium and a change in mine planning philosophy by conducting frequent audits in a Virtual Reality Laboratory. The development of genetic algorithms for optimising stope sequences is also presented.

May 1, 2003

By François Baillargeon

Two types of ore deposit provide the bulk of the world nickel production. They are the hypogene magmatic massive sulfide deposits and the supergene lateritic deposits. Platinum group elements (PGE) are also extracted from magmatic sulfide deposits. Recent sky-rocketing price of palladium has prompted the mineral industry to seek alternative resources. In such a manner has emerged the Lac-des-Iles type of target, a very low sulfide-bearing bulk tonnage type of deposit. Furthermore, unconventional (e.g. non-magmatic) types of deposit are now sought more intensively (Wilde et al., 2003). Considering both this trend of the PGE Industry, and that only a few magmatic deposits account significantly for the world nickel production, someone may wonder if a diversification of the hypogene nickel resources base would not be needed in the near future. Laterites are residual deposits developed on ultramafic rock under wet tropical climate. Are all ultramafic protoliths equal to generate high-grade lateritic deposit? Are some preweathering processes important to generate favourable ultramafic protoliths? The mineralogical heterogeneity of some ?dry? lateritic nickel deposits renders their ore beneficiation difficult. Is the type of nickel-bearing mineral found in the protolith a significant factor influencing the laterite heterogeneity? To contribute to answer all these questions, we have undertaken a research project on the nickel occurrences of the southern Quebec serpentinite belts. Why choosing this specific region for such a project? First because, due to continuous mining of asbestos ore since 1870, the serpentinite belts of this region are among the best exposed and studied in the world. Secondly, this region host a complete spectrum of nickel deposits that have been described before in the scientific literature. Furthermore, this region is slightly to moderately metamorphosed which make it perfectly suited to study the departure from magmatic nickeliferous paragenesis through various metamorphic conditions. As a matter of fact two orogenic events affected this region, the Taconian, in Ordovician time, and the Acadian during the Devonian. The magnitude and the timing of these dynamo-metamorphic events vary considerably through the region (Gauthier et al., 1994). These variations are now well constrained due to precise age dating.

May 1, 2003

While this paper is directed towards the ?Bellambie? type of rope attachment, the principles can be applied to any brand of rope fitting however, it is a only a broad outline and the specific installation and maintenance procedures can be obtained from the attachment supplier. The types of attachment to be discussed are:- ?Thimble Type rope cappel ?Wedge Type cappel ?WRC Rope Clamp ? (Rope Glands) ??Hoist and Balance Rope Sockets In each case, the assembly and stripping (disassembly) plus the basic maintenance procedures is briefly described. A guide for Risk Assessment is also included but because of his familiarity with the installation, the end-user is in the best position to draft the final version.

May 1, 2003

By Chris Yellowega

The construction and startup of a new mine is a daunting task. To successfully locate, design, build and startup an immense human endeavour like a new mine, takes perseverance, planning, dedication and significant capital. The application of capital requires a thorough evaluation of risk and where that risk is most properly limited to create the risk/return profile. One area of significant capital and thus, significant risk is the selection and maintenance of the very machinery needed to deliver the creation of investor wealth. Albian Sands Energy is the operator of the new Muskeg River Mine located north of Fort McMurray in Alberta?s oilsands. The Muskeg River Mine is owned by a joint venture of three companies: Shell Canada, Chevron Canada Ltd.and Western Oil Sands. The mine is designed to run 400,000 tons per day, 365 days per year. The mine conditions vary from material as hard and of similar consistency to pavement to underfoot conditions as soft as saturated sands. Water cannot be drained below surface conditions, shovel teeth can disappear in less than 24 hours and the primary business is often constructing large civil structures that have little to do with the delivery of ore. The mine starts with the deposit (if it doesn?t exist, nothing else matters), moves into the design, the feasibility study and the approval. The evaluation of risk and the strategies surrounding the control of that risk truly lie after these stages are complete. The strategy and execution stage is where risk is eliminated or accommodated. The point at which the investors money is being spent is the point at which the decisions made cannot be reversed. It is of absolute importance that the execution of the decisions are consistent with the strategy agreed to, lest the investors need to be asked for more money. The key sources of risk identified for the Muskeg River Mine were recruitment of trained and experienced personnel and the delivery of ore to maximize early (<2yr) cash flow. The Muskeg River Mine personnel determined that to minimize risk, personnel would be recruited to operate the mine equipment yet, the requirements for maintaining the equipment would best be held by the manufacturer. The strategy was to obtain the correct equipment for the operation of the mine and leverage the supplier?s expertise to ensure the mine wasn?t training a maintenance organization at the same time as a mining organization. In essence the key strategy for the mine start up and early operation was to leverage the equipment suppliers to maintain and repair the equipment. Albian Sands would maximize the utilization of Maintain And Repair Contract?s.

May 1, 2003

By Jonathan Matthews

Efficient and effective management of mine tailings is essential for continued successful development of Alberta?s vast oil sands resources. Syncrude Canada Ltd. continues to research novel tailings management techniques in an effort to improve production efficiency and environmental sustainability. During the summer months of 2001, Syncrude Canada Ltd., in collaboration with members of the Canadian Oil Sands Network for Research and Development (CONRAD), conducted field-scale trials of thickened tailings technology at Syncrude?s Aurora mine, north of Fort McMurray, Alberta. This paper provides an overview of the test program including discussion of objectives, test configuration, and program observations. 0Data collected during the field trial indicate that substantial swings in feed slurry composition challenge effective thickener operation. When coarse mineral solids dominated slurry composition, thickener rake torque rose to unmanageable levels. It was determined that the end-of-pipe depositional characteristics of thickened oil sands slurry were generally consistent with present understanding of oil sands tailings slurries. After shear, thickener underflow product exhibited very shallow beach angles and a limited capacity to keep coarser particles in suspension indicating that stacking of ?paste-like? thickener underflow product from a conventional thickener is not practical in an oil sands setting unless process adjustments can be made to increase the underflow density and/or preserve the initial high yield stress of the underflow during transport and deposition. These technical challenges notwithstanding, Thickened Tailings technology offers considerable promise for recovery of warm water from oil sands process tailings.

May 1, 2003

By D. Marcotte

The Rock Quality Designation (RQD) is a standard scalar measure of rock quality used in common rock mass classification systems (e.g. RMR, Q system). RQD is measured along diamond drill holes. RQD interpolation between holes is nontrivial. Despite the inherent limitations of drill hole data and the local complexities of structural geology, it is often the only information available for mining and major civil engineering projects. Therefore, maximizing the usefulness of this data is warranted. We derive a correction for directional effects that help reduce the bias and improve the accuracy of the estimations. The correction is derived with the aid of numerous simulations. It relies on simple information, the angle between the joint normals and the borehole axis (JO). A reference direction is identified as the borehole direction with smallest JO. A multiple linear regression model based on JO statistics in the various boreholes defines the correction model. The corrected RQD values are then interpolated. It is shown the method enables reducing the bias on RQD estimation by 50% and improves the accuracy of the estimates by 30%. The corrected RQD values show stronger spatial continuity than the raw values. The benefits of estimating the RQD indirectly by using joint frequency measures are also assessed.

May 1, 2003

By Greg Yuriy

This paper discusses research carried out by the Laurentian University Mining Automation Laboratory (LUMAL) in the field of discrete-event simulation of mine equipment systems and reliability assessment of these machinery using genetic algorithms. The AutoMod simulation package, from Brooks-PRI Automation Inc., is used in this research. It is a 3-D discrete-event simulation/animation software tool for creating realistic depictions of manufacturing and materials handling systems. Discrete-event simulation involves modeling of real-life systems based on variables and events which occur or change at distinct points in time. In our case, a two level, multi-drift sublevel stoping model was created in AutoMod for the simulation of the equipment fleet employed in the development cycle (drilling, explosives loading, blasting, materials hauling, ground support) of a typical underground mine in the nickel mining region of Sudbury in Ontario, Canada. The equipment primarily considered in the simulation is Load-Haul-Dump (LHD) vehicles (scooptrams), drills, explosives-loaders and roof bolters. The purpose of the simulation study is to assess the impact of equipment failures to mine?s production throughput. In more detail, using Mean Time Between Failures (MTBF) data of scooptrams derived from a reliability assessment model based on genetic algorithms, LHD failures are incorporated into the simulation model. These failures cause production interruptions to the development cycle and consequently loss of hauling capacity. This paper will indicate the significance of equipment failures to a mine?s production and suggest a methodology based on the combination of discrete-event simulation and a predictive reliability assessment model using genetic algorithms for the study and analysis of mine equipment systems.

May 1, 2003

By David Penswick

Despite anecdotal evidence to the contrary, the mining industry is not in decline. Rather, the world?s largest mining companies are among the most consistently profitable companies in any industry. In many cases, profitable mining companies have been built around a few large scale, long life mines. These criteria for success ? size and long life ? have led to the current preference for deposits that can be exploited using open pit methods. However, developments in the science of block caving have resulted in this mining method achieving costs and productivities that are competitive with the largest open pits, while achieving widespread applicability. One implication of the low costs and widespread applicability of block caving is that some current open pits are possibly too deep.

May 1, 2003

By S. Goodman

Successful exploration for and exploitation of a mineral deposit requires an accurate understanding of the deposit architecture in 3D, and of the development of the mineralizing system through time, which requires a thorough comprehension of the structural framework of the deposit. The integration of geological, geophysical and geochemical datasets to arrive at a 4D structural framework is well-established and has been successfully applied by SRK Consulting in projects from deposit to regional scale. In some cases, we can go beyond this, applying the SEEBASETM technique, which utilizes a ?bottom-up? approach to basin analysis. SRK?s approach primarily relies on the interpretation of magnetic and gravity data, calibrated with many other datasets including mapped geology, topography, event histories, wells/drillholes and seismic data. The SEEBASETM model is a culmination of this data integration and is produced through an iterative process of structural interpretation and geophysical modeling, where an interpretation of basement composition and 4D structure is used to constrain depth-to-basement geophysical modeling, and the modeled depths are then used in conjunction with the structural interpretation to constrain contouring of the basement topography. The result is a rigorously calibrated, 3D view of the basement surface, which can be used to understand the basement and basin architecture, and thus serves as a predictive exploration model. This technique, which was developed for use in the petroleum industry, is now finding success as a predictive tool in mineral exploration.

May 1, 2003

The following guidelines have been recommended by the Diamond Exploration Best Practices Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum. These guidelines are applicable to public companies and their consultants reporting diamond exploration results. In respect of these guidelines, Diamond Exploration Results are results derived from the initial activities undertaken to investigate a diamond bearing prospect or deposit, to generate tonnage, grade and value estimates that cannot be classified as a Mineral Resource or Mineral Reserve. They do not address the earlier stage reporting of geophysical, geochemical or kimberlite indicator mineral results. Public reports of Diamond Exploration Results relating to mineralization not classified as Mineral Resource or Mineral Reserve must address the confidence limits of the result and contain sufficient information to allow a considered and balanced judgement of the significance of the results. The objective of these guidelines is to assist public companies and consultants in making appropriate disclosure of diamond exploration results by reporting in a manner which is: ??Uniform within the diamond exploration industry; ??Consistent with reporting from other industry sectors; ??Comprehensive; ??Unambiguous. The guidelines are not prescriptive. Materiality is the overriding principle that determines the information that should be disclosed. However, where a company or consultant deviates from the guidelines, the disclosure or technical report should state the extent to which the guidelines have not been followed, and the reasons for the deviation. The guidelines do not in any way replace jurisdictional reporting requirements (For example, the requirement for Canadian reporting issuers to comply with Canadian Securities Administrators National Instrument 43-101 by having technical disclosure endorsed by a Qualified Person as defined in that legislation).

May 1, 2003