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By P. W. Jensen

Gold deposits in Interior Alaska are commonly coincident in time and space with reduced, mid-Cretaceous granitoids. The True North deposit of the Fairbanks district is several km from such granitoids, but yields mineralization ages indistinguishable from the Fort Knox granite-hosted deposit. True North, however, resembles sediment-hosted epithermal Au, demonstrating the variability of intrusion-related Au deposits in metamorphic rocks. The True North deposit (14M tons at 1.5 gpt) is hosted within a carbonaceous thrust complex separating eclogite facies from amphibolite facies rocks, located > 5 km from mineralized granite outcrops. The ores contain anomalous Sb, As, and Hg (stibnite is the most common sulfide) with ankerite-sericite alteration in steep NE-striking ?feeder? shears and low angle thrust shears. Nearest hornfelsed rocks are located > 1 km away, and across several high-angle faults. Fluid inclusion data indicates trapping temperatures of ~250C from low-density, low-salinity fluids at P < 0.5 kb. Au was originally present as solid solution in sulfides; minable ores are restricted to the oxidized upper 100 m of the deposit. The considerable differences between this deposit and the temporally equivalent Fort Knox intrusion-hosted deposit indicate no one description adequately characterizes this deposit type.

May 1, 2003

By Serge Vézina

Environmental issues have evolved considerably over the last two decades. The main contributing factors, to name a few, have been the changing values of our modern societies, the globalization of trade and its linkage to environment, evolution and accessibility of information/communication technologies, better educated populations, climate change, long range transport of toxics and the increasing influence of NGOs and multistakeholders. As well, environmental management of mining operations had to be realigned in order to meet these new realities and to respond to more elaborated regulations oriented towards sustainability. Environmental Management Systems (EMSs) have emerged and have been introduced to meet not only the assurance of conformance to regulations but also to prevent pollution and to apply the continuous improvement of mining processes. EMS models have been developed and certification to international standards (e.g. ISO-14 001) is a common practice. Globalization has imposed challenges and additional requirements to environmental management. Developing a mine in emerging countries implies dealing with international agencies, local communities and a variety of government infrastructures to obtain a ?licence to operate?. This paper presents the structure of our EMS and how we have adapted its implementation to our operations in South America.

May 1, 2003

By E. Brouillette

Difficult operating and mining conditions such as low visibility, difficult roadbeds, fast cycling, small openings, and sharp corners create high demand for LHD manoeuvrability and operator dexterity. Operator experience and patience is especially solicited to fill the bucket rapidly and efficiently and performance can be particularly affected by the skill level of individual operators. Teleoperation and automated loading are viewed as options to improve overall equipment and operation performance in certain mining conditions. Comparative statistical measurements of autoloading performance in different production environments at Noranda demonstrate an increase in bucket filling efficiency and a reduction in filling variance, allowing LHD operation to be more consistent and within manufacturer specifications. Consequential cost savings and productivity increases are demonstrated to be transferable to other mining situations.

May 1, 2003

By Kimiz Dalkir

Some things to keep in mind? ! What is your role in knowledge management? ! What knowledge-related challenges are you facing today? ! How does important knowledge get shared in your organization? ! Can you name factors that enable/block innovation and organizational learning in your work context? A brief history of KM? ! Top-down / imposed ! Rigid / bureaucratic ! Slow deployments ! Expensive ! Unpopular: empty libraries, info-junkyards, low adoption rates ! Problems measuring success ! The result: traditional KM is not the answer

May 1, 2003

By Cindy Schiewek

Industrial injury occurrences are an ongoing concern for Mine Operators. Along with the personal suffering of injured workers comes an increase in compensation and productivity costs. Growing recognition of repetitive stress and bodily injuries, accompanied by recent studies, validates the assumption that a relationship exists between ergonomic injuries and machine design. Intuitively, there is a belief that an ergonomically designed machine will reduce repetitive stress injuries through design and education however; quantifying this belief has been a challenge for Mine Operators. Sandvik Tamrock has undertaken a project aimed at developing a business model to assist in quantifying the benefits of ergonomic intervention. This model focuses on distinguishing and quantifying this method of intervention to allow for a better evaluation of the machine. For simplicity, the project initially focused on the Face Drill Jumbos. The target of the project was three fold: !" Recognition of the cost drivers for compensation; ergonomic injuries !" Identification of the relationship between ergonomic machine design, and the decrease of the negative effects associated with the cost drivers !" Systematic prioritization for ?prevention by design? The project findings substantiate the expected reduction in injuries and compensation claims. Based on all ergonomic intervention studies conducted, each case showed a reduction in compensation cost; through prevention by design, one can reduce the amount of potential risk. The paper addresses the resources and methodology used, along with the findings and its relevance to the issues that face the Mining industry.

May 1, 2003

By Paul A. Glapa

Quality is much more than providing a product that functions properly. True quality is a way of thinking, a way of doing business, and, ultimately, a way of satisfying a customer?s long-term needs. A true commitment to quality requires a top-down management commitment, with a willingness to change what needs to be changed and to expand upon ?best practices? that are already done well. Is there a cost to creating and maintaining a quality program? Of course there is, but the cost of not having a focused program is much greater. We have come to regard quality as an investment that pays dividends to both the supplier and customer. The lack of quality costs everyone and the customer pays the ultimate penalty. With modern, highly engineered surface mining equipment the end user calculates cost in terms of lost production (revenue), not simply the cost of the part. Bucyrus International, Inc. is a company that has listened to its customers and has dedicated itself to implementing an advanced quality program. The ultimate goal being the creation of a high quality product with extended reliability for the customer. The result is reflected in Bucyrus? current product offerings and highlighted by the new 495HF electric rope shovels at Albian Sands mine.

May 1, 2003

By Emmanuel Henry

Few industries are more challenged by technical, political and market uncertainty than the mineral industry. Technical uncertainty in mining projects concerns the volume and quality of the resource, the processing and metallurgical parameters, the production efficiency, etc. Political uncertainty can take diverse forms and includes possibilities of change in the taxation system, risk of expropriation and risk of social instability or war. Market uncertainty depends on the market structure of the commodity; price and demand volatilities are the most common sources of market uncertainty. Intensive feasibility studies including these uncertainties and risks are required before investing up to billions of dollars in the development of a new mine. Current feasibility studies are often based on a single (or very few) mean geological scenario and simplified price profiles along the life of the project. Yet, strategic decisions, for example, the level of investment in exploration and metallurgical studies, adoption of a flexible, but more costly, mine design and risk-sharing strategies are made at an early stage. Over the last twenty years, Real Option theory has emerged as a unifying framework enabling strategic planning under uncertainty (technical, political and market). Geological and market variances (second order statistics) are pivotal for proper uncertainty quantification. The present study explores the possible benefits of combining modern geostatistical tools and financial techniques for project management. More precisely, the following questions are examined: Is geological uncertainty really an issue? Can we combine geological and price uncertainties in a unifying Real Option framework? A simple example aimed at illustrating the concepts involved is presented.

May 1, 2003

By Gordon A. Gross

During the last half century major steel industries of the world have become dependent on iron and manganese resources derived from siliceous ironformation sediments. More than two billion years ago vast amounts of iron and manganese were deposited in ironformation sediments on all continents and until recent years their genesis was considered to be a uniquely Precambrian phenomenon. Research work has demonstrated that the origin of the banded ironformations was related to major tectonic features and associated volcanogenic processes that were active throughout geological history. Similar sedimentary-tectonic environments are being explored on the seafloor where metalliferous sediments are forming today. Ironformations are now considered to be a major part of the stratafer group of stratiform metalliferous deposits. They developed in sedimentary basins in areas where deep tectonic fracturing intersected high thermal gradients in the earth?s crust and gave rise to profuse volcanism and the hydrothermal effusive discharge of metals in the vicinity of the volcanic centres. Concepts for the genesis and metamorphism of stratafer deposits as revised in the last half century have had a profound impact in the development of iron ore resources and have had a dramatic impact in the use of metallogenetic concepts for guiding exploration for other mineral resources. They are based on the tectonic history and stratigraphy in the sedimentary basins, the role of hydrothermal volcanogenic processes , as well as environmental and sedimentation factors which influence the deposition of silica, iron , and other metals that were emphasized in the past. Topics of special interest in the genesis of ironformation and stratafer deposits and for guiding mineral exploration are: biomediation in their sedimentation and genesis, the significance of metamorphism in the processing and beneficiation of iron ore and in the genesis of iron ore by natural enrichment processes, syngenetic concentrations of Mn, Ti, Cu. Zn, Pb, Ni, Co, REE, F, Ba, B, As, Hg, W and Au in ironformations and stratafer lithofacies, and the mobilization of gold and other elements by alkaline solutions during diagenesis of ironformation and other stratafer metalliferous sediments.

May 1, 2003

By J. Nsasi Bakambu

This paper describes an autonomous platform for exploration and navigation within networks of tunnels, as those typically found in underground mines and caves. In the exploration mode, a remotely located supervisor instructs the platform to move through successive sections of the network, gathering range data that is, then, concatenated into 2D/3D survey maps of the environment. In the navigation mode, the supervisor specifies high-level missions on the previously acquired survey maps. A motion planner, then, translates each mission into a set of consecutive navigation actions, separated by natural landmarks. Mission execution consists of detecting landmarks, self-localizing and performing the planned navigation actions.

May 1, 2003

By Mikael Ramström

The IREDES Special Interest Group (SIG) for Drill rigs has been active since its inception at MineExpo 2000, in Las Vegas USA. The SIG for drill rigs is responsible for the development of a IREDES Drill rig profile. This includes the exchange of production planning, performance and quality reporting data between various kinds of drill rigs and the databases used by the operating mine. During year 2001 a first draft of the drill rigs profile was jointly prepared by drill rig suppliers, mining companies and third party suppliers and reviewed during several SIG meetings. In mid 2002 the profile was released for prototyping projects and since then, feed back received from these projects has been used as input to the first official IREDES release. LKAB and Atlas Copco decided in 2002 to start an IREDES prototyping project using the Simba L6C production drill rig as target equipment. The goal was to verify the drill rig profile and identify possible problems prior to the official release. This was done by implementing the IREDES prototype version in the LKAB?s production planning system and Simba rig control system. The Simba rig control system was designed to handle drill plan and logging information coming from the mine planning system. In parallel to this the mine production system was adapted for drill plan export and logging data import on IREDES format. This paper presents the most recent results of this prototyping project. Result from late 2002 show that the basic architecture of the drill rig profile works and that a common language for data exchange, IREDES will be a central issue for future mine automation. As a result from this and other IREDES prototyping projects the official IREDES release will be available in 2003. Soon after that release IREDES compliant products can be expected. This will include drill rigs and mine production planning systems.

May 1, 2003

By Karl J. C. Harries

This paper looks briefly at some of the agreements and types of royalties that may be met during exploration activities, but does not go into details relating to them. Agreements can either make or break a deal or relationship. A well drafted, comprehensive and fair agreement can create good relations and trust among the parties and will go a long way towards making a deal work. In the best of all worlds the agreement will be put away and not need to be referred to after it has been signed (but it will be there if needed to sort out potential problems). On the other hand, a poorly drafted agreement or one that is inappropriate to the circumstances or unfair to one of the parties can break a deal and end up with the parties facing each other in that expensive, unproductive and time-consuming occupation ? a lawsuit. Accordingly, it is advisable to involve professional advisers with any agreement. The straightforward one may involve no more that a read through whereas the more complex agreement will require considerable involvement. There is, however, one rule for every explorationist to remember: a professional adviser is only an adviser. His responsibility is to make sure that you have the necessary information to make a reasoned decision but the decision is yours, not the adviser?s. It is your deal, you are going to have to live with it, and it is inappropriate for an adviser to introduce new concepts or amend negotiated ones without your specific instructions. Mineral exploration agreements, although basically option, acquisition and joint participation agreements, come in all the shapes and forms, appropriate to give effect to the endless variety of deals negotiated by the ever-active minds of explorationists. You will note the reference to "joint participation agreements" rather than "joint venture agreements". The latter term was purposely avoided because, with the current activity of explorationists from common law jurisdictions in civil law jurisdictions, it has become necessary for the explorationist to become familiar with corporations and shareholders agreements. As most of you are no doubt aware, under the civil law system a joint venture is normally not recognized as a legal entity and, therefore, joint participation in projects is usually by way of corporations.

May 1, 2003

By Qian Liu

Mining in highly stressed ground conditions has been an increasing challenge at the Brunswick Mine. Two large regional pillars were established on the 1000 m Level to support the ground for safe extraction of the surrounding ore. The South Regional Pillar contains about 5 million tonnes of ore and the North Regional Pillar has about 3 million tonnes of ore. In the fall of 2000, mining activities were suspended following a series of ground movements around the South Regional Pillar along weak geological structures. After extensive geotechnical investigations, a decision was made to carry out a mass destress blast in the West Ore Zone (WOZ) to cut the principal stress across an area of 135 m along strike and 86 m high. At the end of July 2001, the WOZ mass blast was successfully initiated. Following this success the mine decided to take a similar approach to destressing the North Regional Pillar (NRP). The final mass blast was taken in early February 2003. Advanced blasting technologies, including state of the art electronic detonators and blast simulation, played an important role in achieving the successful blasts. The high precision of delay timing and long delay duration of the electronic detonators ensured accurate and reliable initiations of over 800 blastholes in the WOZ mass blast. Orica?s DMC_Blast (Distinct Motion Code) simulation code was used to study different blasting blocks for the desired timing in the initiation sequence. This paper describes the process of applying electronic detonators in complex blasts, and discusses how blast simulation results were interpreted to guide engineering design of the mass blasts.

May 1, 2003

By Fred C. Delabbio

The successful implementation of a new technology in an underground production mine requires many challenges to be overcome. These challenges include mine hardening of new technology, mitigation of safety risks and hazards, mine operation support, and technology transfer to mine staff. In the end, the majority of these challenges relate to the human aspects of implementation. The approach selected to overcome these challenges must be customized and appropriate for each unique situation. This paper outlines the approach used to address these challenges as part of successful implementation and resulting demonstration of the hydrogen fuel cell locomotive at the Placer Dome (CLA) Limited, Campbell Mine. This technology demonstration at Campbell Mine is critical for determining technical, regulatory and implementation aspects to be incorporated into future fuel cell prototypes such as the LHD project.

May 1, 2003

1.Assessment of methane content in coal. Given a naturally low methane content in 11 Coal Seam and the fact that the areas of the 11 Seam adjacent to the tunnelway were degassing for a very, very long time due to previous development and mining, it is conservatively estimated that the remaining in -situ methane is less than 0.5m3/tonne. 2. Continuous miner cutting rate based on the past practice. The best loading rate recorded at the past operations of Smoky River Coal was 45 seconds for a 8 tonnes shuttle car. Using these records, the maximum peak loading rate potential at the face is calculated at 0.178 tonnes per one second or 10.67 tonnes per one minute. 3. Methane release at the face. ?The actual face methane liberation, conservatively assumed at 40% of the total in situ content: 0.20 m3/tonne ?The peak cutting rate: 0.178 t/sec ?The maximum (peak) face methane release: 0.20*0.178 = 0.036 m3/sec

May 1, 2003

By J. A. Caceres

Mining planning and mineral processing are almost two unconnected areas. The mining area builds its economical models considering the plant like a constant parameter: a constant throughput, an average recovery and a unitary cost. On the other hand, the mineral processing area assumes a mine plan with grades, ore type, work index, estimating the performances in an independent way. Previous researches have evaluated the advantage for increasing throughput by increasing the liberation size, thus sacrificing recovery. These valuables approaches have left behind the work index factor, critical variable for Recovery-Throughput capacity estimation. This study describes a method combining mineral processing and mining planning. This method incorporates the grinding and flotation performances into the mining economic models optimizing simultaneously the Throughput- Wi(Work index)- Recovery relations with mining sequence, cut-off strategies, and reserve schedules. This method has been used at Andina Mine Chile, showing 18% net present value increasing with minimum investment associated.

May 1, 2003

By Helmer Kraemer

One of the CIM 2003 conference themes is ?Globalization and the impact on mine operations?. In this context, the first official version of the new ?International Rock Excavation Data Exchange Standard? (IREDES) is being released. This new standard is a highly flexible data interface for exchange of information between production equipment and central computer systems. The standard was defined by global players in the mining industry and will soon be used to enhance local operations of global mining companies. Beside the standard definition now other aspects are coming into focus: The question how to design and how to implement IREDES compliant data exchange in practice. Implementation of IREDES covers the following aspects: !" Implementation on in-field production systems !" Communication and networking !" Implementation on databases and commercial IT systems In-field production systems are characterized by a big variety of different automation systems. Therefor, different IREDES implementation philosophies have to apply to those systems. One philosophy uses an integrated IREDES compliant automation system on every machine. The alternative method uses one shared IREDES compliant ?Proxy server? for a number of machines connected to this server using proprietary interfaces. Communication and networking can be integrated openly and independently from hardware infrastructures. The only precondition is that communication and networking has to be Ethernet - TCP/IP protocol compatible. IREDES Implementation on the commercial IT level means to exchange IREDES data sets with databases, simulation software, office packages and special applications. Interfacing is easy as long as the software or the database system provides an interface to the Extensible Markup Language (XML).

May 1, 2003

By Joel Werner

Weak metal prices, declining head grade, and increased operational costs are forcing many open pit mining companies to look to their balance sheets for significant cost reductions in order to remain competitive. Maintenance continues to represent a significant proportion of the total operating costs in the mining industry. Compared with the other major cost components of the mining process very little effort has gone into maintenance optimization. The potential payoff from maintenance optimization on the cash cost of the commodity is enormous. A large percentage of these costs are incurred in unscheduled maintenance events, which typically cause serious disruptions to the production process. These maintenance induced production losses can be a significant contributor to the overall operating costs. A structured proactive maintenance approach using the latest advances in technology can achieve dramatic cost reductions and productivity improvements. Remote condition monitoring systems are becoming increasingly commonplace and have the potential to identify problems prior to failure. Detection of equipment degradation prior to failure will enable repairs to be scheduled thereby reducing costs and interruptions to production. Remote condition monitoring technology has evolved rapidly in recent years, with a host of new tools becoming available to assist mine operators in improving their maintenance operations. These tools have capabilities such as: remote real-time vital signs and performance monitoring, alarm/event handling, trend analysis, and maintenance workflow management. When these monitoring tools are used in conjunction with a mine management system the vital signs data can be integrated and associated with maintenance history, predictive maintenance data, operational information, and geographical information. This integrated approach to the management of vital maintenance data will help shift the mobile equipment maintenance paradigm from reactive to proactive. This paper will introduce a proactive approach to the management of the maintenance process and the tools required to facilitate this process.

May 1, 2003

By A. C. Wilson

In 1991, local prospector C. ?Mickey? Clement recovered at least three alluvial diamonds from the Michipicoten River. Two of these stones were sent to the Department of Mineralogy, Royal Ontario Museum, where they were identified as industrial grade diamonds with weights of 1.05 and 1.13 carats. Both stones were described as frosted and graphite-inclusion riddled. In 1995, prospector Sandor Surmacz and geologist Marcelle Hauseux discovered diamonds in bedrock approximately 20 km north of the Michipicoten River. An 18.1-kg bulk sample of a xenolith-rich lamprophyre, taken from an outcrop at the side of the Trans Canada Highway north of Wawa, yielded 1 macro diamond and 5 micro diamonds. All but one was gem quality (Sage 2000). Since then, more than 36 occurrences of diamonds in bedrock have been reported in an approximately 30 km2 area centred 20 km north of the town of Wawa. The occurrences are hosted within a sequence of unusual, Archean-aged, heterolithic breccias previously considered to have no economic significance. Ten kimberlite occurrences also have been confirmed in the Michipicoten greenstone belt in the last 5 years. Two of these kimberlites are diamondiferous. To date, expenditures on property acquisition and diamond exploration in the Wawa are estimated at $120 million (CAN). This paper summarizes the geological observations made on these occurrences and discusses including the relationship between the occurrences and the regional geology.

May 1, 2003

By Brian Hall

For some years, the mining industry has been consistently delivering returns below the market average. One of the causes is a disconnect between what is perceived to drive value creation by many industry analysts and senior corporate executives, and what actually drives the intrinsic value of mining operations. The perverse effect is that strategies that should increase value are perceived to have the potential to drive share prices down, and vice versa. This paper challenges common perceptions of what drives a mining company?s value. Anecdotal evidence suggests that the key drivers of value in the market, and hence in many boardrooms, are such things as increasing the reserves and production rate, and reducing unit operating cost. However, while the quoted reserves may satisfy ore reserves reporting code requirements to be economic, this does not imply that they are optimal. Often, a proportion of the quoted reserve reduces the potential value of the operation. Metal price increases, increased production rates, and operating cost reductions are all seen as conditions or actions that can improve value, and lead to cutoff grade reductions, thereby increasing ore reserves. However, modern cutoff theory and studies conducted by the author and his colleagues show clearly that, while breakeven cutoff grades will fall in these circumstances, optimum cutoffs may be much less volatile, and may even increase. Results from case studies indicate that value is maximised by right-sizing, not maximising, the production capacities, and by optimising the cutoff strategy. Values of many existing underground mining operations can be increased significantly by a substantial cutoff grade increase. Also, an increase in downside risk, and hence reduced returns, can occur using typical life-of-mine planning strategies if prices received are lower than predicted. Since this is often the case, low industry returns may be a direct result of typical strategic mine planning processes. Relatively simple cost-effective techniques are available to provide senior decision makers with information needed to assess the tradeoffs between their many conflicting corporate goals, and the balance between risk and reward. Often this information is not being generated at all. If it is, decisions affecting the value of the company are occurring by default at relatively low levels within the hierarchy, with senior executives apparently unaware of them or their potential impact. The paper concludes that without a re-evaluation of the way mining projects are valued, to demand proven value optimisation from mining plans by boards and mining analysts, the industry will continue to deliver below average returns.

May 1, 2003

By Jean Fortin

In order to remain competitive, the search for excellence has been and will remain the only viable option facing the Mount-Wright operations. Safety and environment, process and technology as well as cost performance have been the focus points on which the operations have concentrated their efforts in order to meet and exceed our company&apos;s "Vision 2000" plan. Some of our mine&apos;s accomplishments have been a new work organization, a world class maintenance and a new collective agreement. The concentrator, maintenance and production departments have evaluated their processes and implemented various improvements in areas such as power supply, dewatering, blasting, implementation of service centers for large and small vehicles, fleet standardization, crusher, mills and silos improvements... etc. Safety and work environment for personnel have been our driving force in order to achieve this plan.

May 1, 2003