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By Collin L. Stewart

Published subsidence data for the western United States is limited in comparison with data for the east. This paper summarizes the results of a subsidence monitoring program above two longwall panels at the Foidel Creek Mine located in northwest Colorado. The monitoring area is characterized by overburden ranging from 1000 ft to 1100 ft in thickness. The surface slope parallels the dip of the bedding at approximately 5 deg. Average mining height is 9 ft. Smax averaged 3.4 ft. Draw angles averaged 15 deg for up-dip ribsides and 19 deg for down-dip ribsides. A site-specific profile function is developed from the data.

Jan 1, 1986

At the Waikato North Head Ironsand operation, NZ Steel Mining Ltd is using a Bucket Wheel Excavator û shiftable conveyor mining system to excavate Titanomagnetite bearing sand and clay. The system utilises two Bucket Wheel Excavators with a two level shiftable bench conveyor and common trunk conveyor to deliver the material to a processing plant. The system was commissioned in November 1984 and has proved itself to be a high capacity, low cost method of excavating. Techniques of handling high sand faces have been developed and the conveyor layouts are going through a process of change to cope with the variable geo technical conditions and remain within: the characteristics of the excavators. The safety requirements for operating the system have been of a high standard and the experience has increased the confidence of the Company and the Mines Department Inspector's, for the first Bucket Wheel Excavator Mining system in New Zealand.

Jan 1, 1986

By Robert Bottge

When a company develops a mineral property in a remote area of Alaska, it must consider how best to house its personnel. This Bureau of Mines report examines the economics of two options: company towns and company camps. The price required to maintain a 15% discounted-cash-flow rate of return (DCFROR) was derived for hypothetical 1,000-st/d cut-and-fill mines and 50,000-st/d open-pit mines located in three different regions of the State, One set of hypothetical mines utilizes a townsite; the other utilizes a relatively new concept, a fly-in camp or commuting operation, in which two shifts of employees operate the mine and all associated facilities for 1 week before being replaced by a second crew. The study shows that operating costs were higher for mines employing the commuting option than for mines having a company town because of the additional wages paid for overtime hours; however, the price required to obtain a 15% DCFROR for the single-product copper concentrate, f.0.b. the mill site, was significantly lower owing to the lower investment costs for the camp-type operation. The economic advantage for those mines utilizing the camp increases from south to north and from the coast toward the interior.

Jan 1, 1986

In 1984/85 financial year Australia produced 529 thousand barrels per day (kbd) of crude oil. By far the major contribution (453 kbd) was light waxy oil from offshore Gippsland, Victoria. When these discoveries were made in the latter 1960s, imported oil was available in abundant supply and at low prices. Because of this, the Gippsland producers persuaded Government to control the marketing and pricing of their crude, and thus provide the required security of offtake. Political events in the middle East created supply shortages during the 1970s, and dragged up government selling prices for OPEC crude oil. Thus Arab Light crude that sold for less than US$2/barrel (bl) in 1970 reached $34/bl in 1981. Following the consequent decline in world oil demand, in 1982, Australian refiners sought to evade their obligation to lift Gippsland crude. Hence, in 1983, the Government was forced to introduce a floor quota of 385 kbd of Gippsland crude liftings and to allow producers to export any additional production refiners did not require. On expiry of the old arrangements, Government introduced a partial free market from January 1985, whereby the balance in excess of 350 kbd may be sold to Australian refiners at negotiated prices, or exported as before. In 1984/85 exports were some 90 kbd and will be higher in the current year. About half this total has been exported by BHP, providing valuable experience and lessons which are described in the paper.

Jan 1, 1986

International tenders for contract mining opportunities require the Contractor to make an assessment of risk for an operation with a life span of up to twenty-five years usually based on data made available by the Client. This paper seeks to address how the Contractor assesses the data and quantifies the risks associated with the project. The areas of risk are common to most projects, but in the--Lontractor's case, risk assessment is carried out on the Client's data base and within a compressed time frame of usually less than six months. Incorporation of that risk assessment into the contract documentation is also discussed. Practical examples are given in a number of areas.

Jan 1, 1986

By P. D. Waters

"Mineral deposits are where you find them; they have no allegiance to territorial boundaries. Over the past decade much of the new investment in mining has been outside of continental North America, let alone Canada. The larger Canadian Banks have pursued this offshore business through their multi-national organizations; this reflects both the increasingly international orientation of today's business environment, and to a degree, the competitive advantage of these offshore developments.The current oversupply situation in mineral markets and the increasing maturity of the Developed World Economy reduces the need for new mining projects relative to growth' in GNP. Those that are brought on stream in the future due to their competitive advantage, will continue to be pursued by lenders and equity investors alike. IntroductionProspects facing those who search for mineral wealth were described rather well more than 200 years ago by a Scottish professor of moral philosophy, who also happens to be the father of modern economics.In search for new mines, Adam Smith wrote in The Wealth of Nations, ""there seems to be no certain limits either to the possible success or to the possible disappointment of human industry"".How true that statement remains today, where we are seeing economic cyclical problems compounded by basic fundamental structural change within the mining industry.Despite the enormous advances in earth sciences during the past two centuries, the rewards of mineral exploration still remain uncertain. Even though a promising orebody is found, ultimate profitability may still depend on the vagaries of the marketplace, where large and unanticipated changes in supply, demand and prices can play havoc with the best of calculations.The Canadian mining industry has had its share of disappointment during the past few years, with savage competition, shrinking demand, declining prices, and disappearing profits. But it has also had some share of success, such as at Hernlo, which now seems certain to provide some of the lowest cost gold production in the world"

Jan 1, 1986

By Ted Schwinden

It's my pleasure to welcome the Rocky Mountain Coal Institute to Montana. Now that you've ended a 74 year history of meeting outside our borders, I hope you'll be back more often. Even if I can't convince you to come back before 2060, when another 74 years will be up, I'm confident the Kalispell and Flathead Lake area will do the persuading for me. In recent weeks, I've made a number of speeches around the state pointing out just how wrong the revenue projections in Montana's state government made in April of '85 were when we came to April of '86. Since the middle of this month, Montana's legislators have been in Helena struggling to balance a state budget that, by the end of fiscal year '87, threatened to be some $88 million in the red. Other western states reliant on natural resource and agricultural economies have found themselves caught in the same deflationary spiral. The "window of opportunity" I proposed and the 1985 Montana Legislature passed, couldn't have been opened at a more difficult time. What was envisioned as an incentive to expand Montana's coal production, and our tax base, ran aground on low oil prices and excess hydroelectric power. De- spite the one-third severance tax rebate offered on new coal production, year-to-date figures published in the June 2nd Coal Week show that production in Montana is down almost 10 per- cent from last year. Again, we're not alone. Production in Wyoming is down 8 percent and in North Dakota, it has dropped 13 percent. An over- all 3 percent production decline in western states looks even worse when contrasted against a 12 percent increase for your eastern competitors. Montana's "window of opportunity" had the potential to be a significant signal to your industry. That potential was quickly tempered by the inability of Arab nations to stabilize world energy prices. If any of us had forgotten, the last twelve months have reminded western states that the well-being of our natural resource economies has a tremendous impact on the ability of all levels of government to provide services. The past year has also driven home that in the world of business and in the business of the world, risk-taking is still the name of the game. The Western Governors recognize the problems facing this industry - and our states - and we're prepared to fight for the future of western coal. In the past two decades, legitimate environmental concerns have created a vast body of new legislation affecting coal producers. The industry has been required to meet new reclamation standards - tough regulations relating to ground water, air quality and wildlife habitat. To the industry's credit, coal companies have hired professionals with the technical know-how to do it right. Rather than considering reclamation laws to be an unreasonable burden, today's coal company is more likely to view its reclamation efforts as a source of corporate pride. In a sense, the industry and the agencies which regulate it have matured together . . . although at times OSM is reluctant to admit that either of us capable of or willing to play by the rules. Certainly some abuses exist and OSM's oversight has been helpful in ensuring parity between those states willing to comply and those that would rather defy federal law. Nonetheless, penalizing the more modem and responsible western coal industry for abuses that occur elsewhere is both unfair and counterproductive. Federal penalties range from "cruel and unusual" reporting requirements to the proposed electricity tax that would effectively force utilities and ratepayers who have already met the sulphur emission standards to subsidize those who have dodged their cleanup responsibilities. As a member of the Alliance for Acid Rain Control, I have joined corporate leaders, academicians, environmental representa-

Jan 1, 1986

By Lloyd F, Arnold D. A, Hagan T. O

This paper investigates the problems that are encountered in mining at extreme depths. It looks into the rock mechanic aspects, especially the high stress levels that will occur, and the hazard of rockbursts. Furthermore, environmental problems are discussed, with refrigeration and reduction of neat loads being major methods of maintaining ,sorkable conditions. The paper concludes that it will be of tmost importance to have a planning team of Tne highest quality to ensure that conditions are maintained so that work can be carried out safely and under reasonable conditions.

Jan 1, 1986

By Wright JK, Turner RE, Batterham RJ, Morrison AL

Simulation can play an important role in the design, optimization and control of complete industrial processes, the most appropriate method depending on the particular application. Most commonly, process models or simulators are means of representing the process which are either purely mathematical or physical. Mathematical models, however, almost invariably need to be based to some extent on experimental data or require experimental verification before they can be used with confidence. Ways in which experimental and mathematical modelling techniques can be combined to best effect are discussed, with reference to the simulation of iron ore induration and direct reduction processes. A novel method is presented for the simulation of direct reduction shaft furnaces. Small scale apparatus has been developed in which ore or pellet samples are subjected to the changing environment of the industrial process. The time dependent conditions (solid temperature and gas compositions) are provided by a mathematical representation of heat transfer and the conservation of mass and energy in the process Simulated.

Jan 1, 1986

By Lewis RW, Tullemans FJ, Gallo JB

Gold mineralization at Kidston occurs in a semicontinuous zone near the margin of a large, late Palaeozoic breccia pipe. The pipe is ovoid in plan, funnel-shaped in cross section and straddles a contact between Proterozoic metamorphic and granitoid rocks which are intruded by a swarm of late Palaeozoic acid dykes. Rock fragments within the breccia pipe reflect the enclosing country rocks and mix in various proportions to form gradational lithological domains. Most of the gold is free and is located in the breccia matrix and in a set of inwardly dipping sheeted quartz veins which kink around the pipe margin. Sulphide minerals, dominantly pyrite, occur as disseminations in the breccia matrix and as aggregates in the cores of quartz veins. Hydrothermal altLration is pervasive within the breccia and is most intense in areas with the highest percentage of acid dyke fragments. Sericite and carbonate are the main alteration minerals. An empirically developed genetic theory for the formation of the breccia pipe and attendant mineralization involves magmatic and post-magmatic processes associated with the intrusion of a granitoid body to a shallow level in the crust. Economic evaluation of the deposit relied heavily on the results of diamond drilling. Both polygonal and geostatistical reserves were calculated and found to be in close agreement. Geostatistical reserves are considered to more closely reflect the tonnes and grade achievable during mining. Daily geological mine routine is strongly biased towards grade control allied with the practical aspects of open-pit mining. Tonnage/ grade correlations between ore blocks geostat- istically generated from exploration diamond core results and ore blocks generated from high

Jan 1, 1986

By Ho SE, Neil Phillips G, Houstoun SM

There are numerous individual gold deposits in the Archaean greenstone belts of Western Australia, but only 26 have productions and/or quoted reserves in excess of 10 tonnes Au. Most gold production has come from mineralization in shear zones, quartz veins or stockworks in volcanic or intrusive host rocks, particularly tholeiitic basalts or dolerites metamorphosed at sub-amphibolite facies (e.g. Kalgoorlie). Significant prod- uction has also come from BIF-hosted deposits (e.g. Hill 50), and large reserves are quoted for mafic hosts at high metamorphic grade (e.g. Big Bell). Most deposits have marked structural control, great depth extension, and are characterized by zoned alteration haloes of pyritization (with Au), K-metasomatism and carbonation. On the regional scale, most larger volcanic- or intrusive-hosted deposits occur in younger (ca 2.8 b.y.) rift-phase green- stones (Norseman-Wiluna Belt). These belts also have a high prospectivity (36 kg Au/km2 of greenstone belt). Younger (ca 3.0 b.y.) and older (ca 3.5 b.y.) platform-phase green stones of the Murchison and Sodthern Cross Provinces and the east Pilbara, respectively, are progressively less prospective (14 kg Au/km2 and 0.8 kg Au/km2, respectively) and also have progressively smaller deposits. The important regional- and local-scale characteristics of most gold deposits can be explained in terms of a metamorphic- replacement model. In this model, metamorphic H2O-CO2 fluids, focussed by faults and shear zones, infiltrated host rocks and deposit gold at 350 + 50¦C and 1-2 kb, largely in response to fluid-wallrock interaction. In many large deposits, gold precipitation was synchronous with sulphidation of Fe-rich host rocks, but the diversity and abundance of smaller deposits reflects the variety of reactions precipitating gold from ubiquitous, auriferous metamorphic fluids. Regional variations in abundance and size of deposits relate to factors such as tectonic setting, alteration styles and possibly source rocks.

Jan 1, 1986

By M. A. Cristovici

"In the last few years CANMET has taken the initiative by investigating the possibility of reactivating abandoned old tailings dumps (for gold production) which would be of potential economic interest across Canada.Nova Scotia was one location where numerous gold processing plants were in operation in the early days. A survey of the old tailing dumps was conducted and some areas of interest were selected. Among them were the sites identified as Lake Charlotte and Forest Hill.Ore samples collected from those tailing ponds were examined for their chemico-mineralogical composition and investigated for gold extraction. Three technological concepts were tested: flotation, direct cyanidation and flotation followed by cyanidation of the flotation concentrate. The combined flotation- cyanidation variant, yielding a gold recovery in the range of 90%, was recommended for processing the tailing ore.Pilot-plant runs carried out by a commercial testing firm (data not included in this paper) confirmed the conditions and results of CANMET's technology.As a result a consulting-engineering firm designed the processing plant which is expected to begin operation in the near future.IntroductionIn the last few years CANMET initiated a research program to locate in Canada, abandoned gold-silver tailing dumps of potential economic interest and to explore the possibility of recovering the precious metals from these old deposits by modern techniques.A literature search revealed that the first production of gold in Canada was recorded in British Columbia in 1858 and that, production prior to 1900 was essentially restricted to the Yukon, British Columbia Nova Scotia and Quebec. During the early 1900s, Ontario, Manitoba and the North West Territories joined the ranks of the gold producers.Early milling and recovery methods were mainly restricted to sluice boxes, gravity stamps and amalgamation. Froth flotation and cyanidation were introduced at about the turn of the century.Recovery of gold at plants using flotation and cyanidation was very good, therefore the tailing ponds resulting from those operations would, very likely be of little or no economic importance. However, the gold recovery at the amalgamation and gravity concentration plants appeared to be lower, indicating the possibility that significant amounts of recoverable gold would have been carried with the tailings to the dump sites."

Jan 1, 1986

By G. S. Adisoma, J. J. K. Daemen, R. O. Roko

A common assumption in determining the shear strength of a rock joint using a direct shear test is that the surfaces undergoing relative shear are in complete contact. Furthermore, the limiting displacement associated with the residual strength values is obtained based on engineering judgement through visual inspection of shear force versus displacement curves. This study proposes a systematic way of determining the residual shear strength of rock joints by evaluating the limiting displacement leading to a minimum cohesive strength value and taking the true area of contact into account. The results of the study indicate that there is a limiting displacement associated with the residual shear strength, and some rocks may have an inherent interface residual cohesive strength different from zero. When the cohesion is different from zero, the residual shear strength is likely to be underestimated if the true area of contact is not considered. In the case where zero calculated cohesion is obtained, the area of contact has no bearing on the shear strength equation because the frictional force depends only on the normal load.

Jan 1, 1986

By McKay AD

The bulk of Australia's uranium resour- ces was delineated in the last 18 years when a total of $563 million (1984 dollar values) was spent on uranium exploration. Australia's share of the low-cost Reasonably Assured Re- sources in the World Outside the Centrally Planned Economies Area (WOCA) increased from 1.5% in 1967 to 29% by the end of 1984 and its share of the low-cost Estimated Additional Resources (Category I) then stood at 25%. As of December 1984, Australia's uranium resour- ces were estimated by the BMR to be: Cost range US$80/kg U (US$30/lb U301) Reasonably Assured Resources 463 000 t U Estimated Additional Resources(I) 251 000 t U Cost range US$80-130/kg U (US$30-50/lb U308) Reasonably Assured Resources 63 000 t U Estimated Additional Resources(I) 126 000 t U The increases in Australia's resources was sustained by a group of large and rela- tively high-grade deposits which were disco- vered during the period 1969 to 1975. Austra- lia's share of the low-cost resources was also enhanced by a contraction of WOCA's low-cost resource base due to escalation of production costs for smaller low-grade deposits. Most of Australia's uranium resources are contained in the Proterozoic unconformity- type deposits of the Alligator Rivers uranium field and the stratabound deposit at Olympic Dam on the Stuart Shelf. Most of the remain- der of Australia's uranium resources is con- tained in calcrete-type deposits. Less than 10% of Australia's uranium resources are in sandstone-type deposits. Total Australian production to the end of 1984 amounted to 26 241 t U, representing 3.4% of WOCA's cumulative production. Aus- tralia's share of WOCA's annual production has steadily increased from 1.3% in 1977 to 11.2% in 1984 (4390 t U). The increases in Austra- lian production took place in the face of reductions of production in WOCA countries, principally the US, from a record level of 43 988 t U in 1980 to about 39 000 t U in 1984. New low-cost production centres, mainly in Australia and Canada, have partly compen- sated the decline in US production. The Department of Resources and Energy (1985) reported that Australian exports of yellowcake are expected to reach 10 000 t U308 (8480 t U) by 1993/94, representing an in- crease of about 13% oer annum.

Jan 1, 1986

By W. J. S. Craigen, G. E. Wittur

"In the context of today's continuously changing world, there are many factors which must be considered when attempting to assess the ability of Canada's primary copper producers to remain competitive in the face of increasing competition in world markets. In this paper, we have attempted to document those factors that will have the greatest impact on the future viability of Canada's copper industry, and to suggest possible strategies to fully utilize whatever inherent advantages Canada may have to enhance its competitive position. Technological factors related to the efficiency of precious and by-product metals recovery, energy type and utilization efficiency, production and sale of sulphur by-products, and control of 502 emissions are given high priority in this evaluation of Canada's future needs to remain competitive. Particular emphasis is placed on assessing the relative viability of hydrometallurgical versus pyrometallurgical processes for copper; to address uniquely Canadian conditions and problems. Due consideration is also given to the economic incentives required to allow Canada's copper producers to compete under anticipated world market conditions and to facilitate the continued development of Canada's copper resources. IntroductionWhen we try to assess the viability or competitiveness of any industry the bottom line is still usually, ""Can we produce a pound of product cheaper than the competition?"" Canada's copper industry is certainly no exception. However, as with most resource-based industries dependent upon exports, there are many factors which have a significant effect on the cost components which make up the total cost of producing and selling a pound of copper. It is desirable therefore to have as clear a picture as possible of the cost components, the major factors affecting them, and how they compare with the competition, particularly the third-world copper producers.In this paper we have attempted to provide a brief outlook for world copper markets and a brief overview of Canada's competitive position. We have also attempted to document those factors which will have the greatest impact on future production costs, and have suggested possible initiatives to utilize inherent Canadian advantages to enhance our competitive position. Special emphasis has been placed on technological initiatives designed to make full use of these ""advantages"", to develop superior beneficiation and extraction! refining technologies. Major factors considered in the present study are:"

Jan 1, 1986

By Douglas F. Stevenson

Your committee doesn't assign any easy topics to us speakers. How do you define "successful" in what is essentially a losing game? I am reminded of the fellow who returned from a one-week vacation in Las Vegas, and proudly stated, "I only lost $150." To him, that was "success." I am afraid that workers' compensation is a losing game for employers, too, and success has to be defined in terms of how much or how little is lost. We have no chance of producing a profit for our employer. We will narrow down to some suggestions about conducting a workers' compensation program at the plant level, but first I want to discuss the general legal, social and legislative climate in which your plant program operates. Workers' compensation is a statutory program with its general parameters established by the legislature. These parameters are then amplified by the boards and commissions established to administer workers' compensation. What influences the legislature and the boards and commissions as they establish the framework in which we must function?

Jan 1, 1986

By J. E. Lema

America's bulk commodity transportation systems have taken on a new look in the 1970's and 1980's. Railroad systems, barge lines providing inland and intra- coastal waterway transportation, and Great Lakes carriers have undergone substantial changes through mergers and acquisitions, consolidations of ownership and control, and construction of modern intermodal transportation facilities linking railroads and water carriers. The new look has generated some concerns and opportunities with regard to producers and shippers of bulk commodities which are characterized by the necessity of moving large quantities of heavy materials long distances. Clearly such transportation requirements call for efficient railroad and water carrier services. Shippers of commodities like coal, grain, .chemicals, minerals, ores, forest products, petroleum products, and heavy manufactured goods find reductions in transportation competition lead to concerns that rates charged by carriers will not be sufficiently constrained by market forces. At the same time, new policies on contracting for railroad services can lead to greater efficiencies, a rewarding opportunity for carriers which should be shared with shippers and consumers of bulk commodities. Then, of course, there's a related problem that in the absence of effective competition, the benefits of increased carrier efficiency will not be passed on, in part, to shippers and consumers, causing losses in markets for producers.

Jan 1, 1986

Commissioning is one of the many phases of a project, it has inter-dependencies with the other phases, as they have amongst themselves, and has its own terminology and distinctive features. Commissioning time and cost can severely affect project economics, especially through unrealistic estimating, and requires a separate management team to ensure full control is. maintained. Targets to be achieved in commissioning are identified, together with the necessary policies to achieve them. Factors which have to be taken into account in applying these policies are Discussed.

Jan 1, 1986

By Denis Yaychuk, Gary Billingsley

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

Jan 1, 1986

By M. A. F. Fedikow, D. A. Baldwin, C. Taylor

The Agassiz Metallotect and the Johnson Shear Zone represent two metallogenetic fea tures located within the northern and outhern belts, respectively. of the Aphebian-aged Lynn Lake greenstone belt in northern Manitoba . Numerous gold occu rrences are associated with these two regional features . The tratabound Agas iz Au-Ag deposit with 2.9 million tonnes of 5.2 g/tonne Au and 11.8 g/tonne Ag. occurs within the Agassiz Metallotect. The stratigraphic sequence characterizing the Agassiz Metallotect comprises interlayered ox ide. silicate and sulphide facies iron formations, biotite-rich and siliceous siltstones. and a high Mg- i-Cr basaltic rock that ha previou ly been identified as tholei itic picrite. These rocks can be traced in outcrop and by their INPUT and gradiometric signature for 65 km. The Johnson Shear Zone is an ill-defined 35 km long zone of strucwral disruption that crosscuts volcanic. sedimentary and intrusive rocks and contains numerous vein-type gold occurrences. Both of these metallotects are characterized by their low level of exploration activity and as a result offer excellent residual exploration potential. Rock, basal till and vegetation geochemical techniques applied in the vicinity of the Agassiz deposit indicate the presence of trace element dispersion halos associated with the mineralization. The halos define an exploration target larger than the mineralized zone. Gold occurrences within the two metallotects are described with emphasis on the Agassiz Au-Ag deposit . A wide range of gold occurrence-types is documented including syngencticstratabound , epigenetic-replacement and epigenetic-quartz vein .

Jan 1, 1986