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By E. Kendall Cork

The traditional financial objective for a single mine company has been to operate as frugally as possible and to pay out most of the earnings as dividends. If the business is cyclical (as it is for most metals) the dividends might fluctuate quite widely. When the mine is exhausted the company disappears. This is still quite a viable strategy for a single mine company. It is not however a viable strategy for the world as a whole. The mining industry is built by mine development companies who can mobilize the people and capital to bring new mines into production. Their skills must include marketing, engineering, finance and other politics. It is very rare for a property to be brought in without the support of a major company that can provide all these services. The exceptions will usually have some other form of big brother support, for example the U.S. government uranium contracts at guaranteed generous prices. The mine development company will seek as a minimum to perpetuate itself by developing new mines in order to replace those which are running out. The more common and more ambitious objective is to grow -- that is to add to its ore reserves and current production by developing more new mines. The financial objectives for that company are very different. Obviously if all the earnings were paid out in dividends there would be nothing left to work with. The first financial policy then is to spend an appropriate amount on exploration for new properties. The next is to retain enough of the earnings to provide the capital for new projects at least sufficient for the equity. There is no magic formula as to what proportion of earnings should properly be distributed as dividends by a growth-oriented mine development company. As a rough rule of thumb distributing half or more will probably leave too little to work on and 30% or so is probably a good balance. However the circumstances differ widely from company to company. It may be useful to set an objective for the rate of growth of a company's earnings. Some have picked rates such as 15% per annum compounded. Others have set a target in real terms which might appear as 10 or 11% plus inflation. Obviously the arithmetic of compound interest is very attractive; however in practice there is much variation. Indeed current returns from existing operations swing widely with the business cycle and there is no assurance that economic new properties will be found according to someone's arbitrary time schedule. For example, Western Mining Corporation Limited in Australia explored for 30 years with little to show for it, but then found the great Australian nickel deposits and more recently the huge Roxby Downs copper. That long dry spell could not have fitted anyone's arbitrary calendar of growth and yet they would not have found such orebodies without that long period of effort. Should they have abandoned the search? Once a new property has been found or acquired there has to be a threshold rate of return on the new capital to be invested against which to evaluate the property's economics. Conventionally this seems to be 15% after tax, a number common in other heavy industries as well. In some cases it is expressed as a lower number plus allowance for inflation. Discounted cash flow analysis is a very useful tool but it does not make the decision. In the end a "go" decision depends on judgment of many factors some of which are numbers used in the DCF calculation whose credibility must be examined. It is curious how frequently investment proposals come in with the rates of return very close to 15%. The project advocates know that a number much less than 15% will not fly and that a number much more is not necessary. With much higher nominal and real interest rates of recent years, even though before tax, logic suggests that the hurdle rate should also rise. The power of compound interest is so great that 20% is very hard to achieve in any cash flow projection but 18% may be a sensible yard - stick. Once again it is remarkable how many project proposals come in with an 18% return. On the record the mining industry as a whole has not been overly restrictive in choosing its hurdle rates of return. This is shown by the abundance of metals in recent years and the failure of metal prices to keep up with inflation. All of the foregoing is standard text book stuff.

Jan 1, 1985

By G. A. Smyres

The Bureau of Mines conducted laboratory studies to determine the feasibility of chlorine-oxygen leaching for treating low-grade zinc sul-fide flotation concentrates. Recovery of zinc sulfides by flotation from complex fine-grained sulfide ores is substantially higher in low-grade bulk sulfide concentrates than in the high-grade cleaned concen-trates required for smelter feed. However, there is no commercial process in the United States for the treatment of low-grade bulk zinc sul-fide concentrates. Leaching experiments using reactors of 500-mL and I-gal capacity were conducted on a bulk concentrate containing 19.3 pct Zn, 35.6 pct Fe, and 39.4 pct S. The effects of pressure, temperature, and percent solids on extraction were investigated. The chlorine-oxygen leaching procedure showed promise for treating the concentrates. Zinc extractions of 95 pct or more were obtained by leaching at 50 pct solids in the temperature range of 1000 to 1200 C. Zinc extractions by leaching with chlorine followed by oxygen at reactor pressures of 50 to 100 psig were independent of pressure.

Jan 1, 1985

By V. K. Gupta

"Effect of mill speed on grinding kinetics has been investigated with a view to using mill speed as a manipulated variable for control and optimization of the grinding circuit performance under variable ore hardness conditions. Dry and wet batch grinding tests were carried out for quartz, limestone and cement clinker in a 29 cm x 18 cm laboratory ball mill. Mill speed values selected were 55 and 70% critical. In the case of dry grinding operation, with an exception of quartz, for all materials studied the effect of mill speed on grinding rate was found to be insignificant for sizes finer than about 35 mesh. In the case of wet operation, grinding rates were found to be approximately proportional to the mill speed. The implications of these results are discussed.INTRODUCTIONIt is well known that mill speed has a considerable effect on the grinding rate of the ore particles l-3 For particles of a given size there is an optimum speed at which mill grinding efficiency is maximum (i.e. specific energy consumption is minimum) 3•4. Mill speed can, therefore, be effectively used as a manipulated variable to deal with the disturbances arising from changes in the size and hardness (grinding rate) of the ore being fed to the grinding circuit. Though, it has not been the case so far, with recent developments of ring motors2 and frequency inverters5 a continuous variation of mill speed has now become feasible, and it is expected that mill speed control will soon be a regular feature of plant operation2,6."

Jan 1, 1985

By Wynne Potter

"On the west coast of Cape Breton Island four coal basins have been identified, varying in age and extending from Port Hood northeasterly to Chimney Corner. Those of Chimney Corner - St. Rose in the north and Port Hood in the south belong to the Pennsylvanian Riversdale Group while lying between them are the coal basins of Mabou and Inverness belonging to the younger Pictou Group. Almost all of the coal basins are submarine and coal mining was carried out on all basins at various times. The seams in all basins dip steeply seaward at angles from 10 to 20 degrees but were found to flatten seaward. The coal is ranked as a high volatile C bituminous coal. Ash and sulphur contents are high compared with Sydney coal and the coal has a tendency to spontaneous combustion when stored in large quantities.Of the four basins, the most significant is that of Mabou. At Mabou recent seismic and drilling investigations have indicated that although a sizable reserve of coal may be found offshore the structural problems, particularly faults, and the poor quality of the coal encountered will make it a resource of the future, if at all. Inferred resources have been calculated at 150 million tonnes in four seams over a 10 km2 area and extending 3 km from shore. The quality of the Mabou coals varies with ash, ranging from 5 to 25 per cent and sulphur up to 6 per cent. Calorific value ranges from 25.3 Mj I kg to 31. 7 Mj I kg. The Port Hood and St. Rose -Chimney Corner fields (Fig. 1) contain 16 million and 3 million tonnes respectively, but the Inverness basin is considered to have been depleted. The active mine in this area is the Evans Mine at St. Rose that is currently producing between 30 -50,000 tonnes a year from proven reserves of approximately 3 million tonnes."

Jan 1, 1985

By A. Roy MacLean

"In the Maritimes, there are twelve coal areas. From east to west, these include the Sydney coal field, the St. Rose - Chimney Corner, Inverness, Mabou, Port Hood, Pictou, Colchester - Debert, Springhill, Joggins - Chignecto, Beersville, Lake Stream, and Minto. The first eight are in Nova Scotia while the remaining four are in New Brunswick.In all these areas, the coal was formed during the Carboniferous period, which existed some 300 million years ago. However, within this period not all coal formation took place during the same time. There were three main intervals, which occurred at the time that the Riversdale, Cumberland and Pictou groups were laid down (Hacquebard, 1970). The oldest coals are those of the Riversdale Group. These coals were of rather limited extent, and only a few mineable seams are present, particularly at St. Rose -Chimney Corner and Port Hood. From these two areas only 2 M tons have been extracted, and 'measured' resources of 7 and 9 M tons respectively remain. The Cumberland Group coals are confined to Cumberland County and include the coals of Springhill and Joggins River Herbert -Chignecto. Some 43 M tons have been removed and only 7 M tons of 'measured' coal remain, with an addit10nal 39 M tons of 'inferred' resources. However, there are additional resources at Springhill, which will be discussed in more detail in a later section. The coals of the Pictou Group are the youngest and the most abundant, both in actual number of seams and in regional distnbution. These coals were formed during the Westphalian C and D, a time during which the main coal deposition in Europe also took place. Here belong the coals of the Sydney, Inverness, Mabou, Pictou, Debert, Beersville, Lake Stream and Minto fields. Their total production amounted to 469 M tons or 91 % of the Maritime total of 514 M tons. The remaining resources of all Pictou Group coals have been calculated at 254 M tons of 'measured' coal and 949 M tons of 'inferred' coal. As can readily be seen, the bulk of both past production and remaining resources occur in the Sydney coal field. The Sydney figures represent 73% of total production, and 87% of total 'demonstrated' resources in the Maritime Provinces. Next to Sydney, the Pictou coal field has been the greatest producer, with 59 M tons; it also has the second largest 'measured' resources, amounting to 25 M tons. However in terms of 'inferred' coal resources, the Mabou coal field, ~ith 140 M tons, ranks second to Sydney."

Jan 1, 1985

By W. Petruk, D. R. Morris

"The lead concentrate produced from the volcanogenic base metal ore of Brunswick Mining and Smelting in New Brunswick contains major to trace amounts of iron, zinc, cadmium, arsenic, antimony, copper, silver, selenium, tellurium, bismuth, sulphur, tin, indium, mercury and manganese as impurities. When the concentrate is sintered some of these impurities enter a variety of oxide phases, whereas others precipitate as metals. In the lead blast furnace the oxide phases decompose and the impurities recombine 10 form new phases, most are eventually discharged to the slag. The metals of the sinter remain as metals in the lead blast furnace where even more are produced, and are discharged largely with the lead bullion,IntroductionMany lead concentrates are produced from volcanogenic base metal ores . Such ores contain a wide variety of trace minerals and trace elements , therefore, concentrate s obtained from them will contain the trace elements as impurities . The impurities in the lead concentrate from one such ore, the Brunswick No. 12 deposit of Brunswick Mining and Smelting Corporation (BM S) in the Bathurst area in New Brunswick , were studied as pan of a larger investigation that was conducted to determine the extent of chemical reactions of the sinter within the lead blast furnace(1,2) The lead concentrate was investigated to identify the host mineral s for the impurities, the lead sinter was studied to identify the host phases, and frozen products from different depths within the BMS blast furnace at Belledune, New Brunswick were studied to determine the behaviour of the impurities.T he investigation was performed by pre pa ring polished sections o f the samples and studying them with a reflecting microscope, a scanning electron microscope (SE M) equipped with a Kevex energy dispersive X-ra y analysis system, a microprobe, and a Quantimet 720 image analyzer. The samples were also analyzed by X-ray diffractometer, and individual grains were analyzed by the Debye-Scherrer X-ray powder film method."

Jan 1, 1985

By M. M. Papic, J. C. Whitehead

"A sample of Hat Creek coal has been extracted using supercritical aromatic solvents in a laboratory-scale extraction unit. Extract yields in the range 21 to 27 per cent of dry-ash-free coal were obtained.These yields are significantly lower than yields available from high-volatile bituminous coal and some lignites. Thus in a combined extraction/hydrocracking scheme for the production of liquid fuels from Hat Creek coal the char product would exceed that required to supply the energy and hydrogen requirements of the process. Excess char could be used for the production of power or gas for sale.IntroductionThe Supercritical Gas Extraction (SGE) process developed by the U.K. National Coal Board operates in two stages: an extraction stage in which a coal extract is separated from mineral matter and undissolved coal and a subsequent hydrogenation stage.The SGE process is based on the ability of a compressed supercritical fluid to dissolve relatively high molecular weight substrates. It is operated under conditions where a hydrogenrich portion of the coal is selectively extracted in a short residence time extraction stage leaving a hydrogen-deficient char. The process schematic shown in Figure I illustrates that the extract produced is separated from the solvent and passed to a conventional hydroprocessing stage while the char product is utilized in the production of heat, power and hydrogen for the process. An extract yield in the order of 50 per cent dry-ash- free coal represents a ""balanced"" case for such a process in which there is just sufficient char for the provision of these commodities."

Jan 1, 1985

By Willard C. Lacy

Rather than attempting to present a summary of the many and highly varied papers that have been presented at this symposium on sampling and grade control, I will attempt to extract the general philosophy of analysis and approach, and attempt to identify the trend of future developments. First, the term "sampling" is used with its broadest connotations. A sample consists of a representative portion of a larger mass, and must represent the mass not only in the grade of contained metals or minerals, but also in all other respects in terms of mineralogy and mineral quality (1, 5), deleterious materials, recoverability of economic components, physical behavior, geophysical response (I), and even archaeological and environmental aspects (7, 11). The sample must be taken from a locality and in such a manner and quantity that it is representative of the larger rock mass. This calls for complete and accurate geological control and an understanding of the nature and distribution of the contained chemical and physical elements and a record of the effectiveness of the different sampling methods. Second, value of a given mass of ore material is based upon its profitability - the difference between recoverable value and costs to achieve recovery, beneficiation and sale. There is a strong movement in mining geology control toward more complete analysis in determining cutoff grades and in grade control, as illustrated by the kriging of metallurgical recovery factors as well as grade at the Mercur Mine (8). To achieve a "profit- ability factor" as a guide for economic mining practice requires further integration of: 1) the value of contained metal or mineral, 2) percentage recovery of values, 3) dilution of ore with waste rock, 4) addition to, or loss of value as a consequence of by-product materials or deleterious components, 5) cost of producing a saleable product plus mini- mum profit to justify the effort (cutoff), and 6) cost of land restoration (7, 11). All these parameters vary with the rock type, rock structure, mineralogy, depth, geometry, mining and metallurgical methods, but they must be sampled and analyzed if sampling and grade control are to reflect profitability. A wide variety of deposits has been presented at this symposium; each deposit with its own problems and special solutions. Deposits containing high unit-value components, e.g. precious metals and diamonds, present special problems in the obtaining of accurate samples and generally require statistical analysis control methods or may disregard or modify occasional high or occasional low values, based upon experience (12 ) Grade control may be accurate for the long term but may vary for the short term. Bulk sampling is always essential. Deposits containing metals or minerals with low unit value are very sensitive to transport costs, and they are often very sensitive to small amounts of deleterious components or differences in physical or chemical behavior. Problems of sampling and grade control change with the genetic type of deposit, with the stage of deposit development and with the size of the information base. Precious metal epithermal deposits (2, 6, 8), because of rapid vertical zonation and erratic lateral distribution of values, have always been difficult to evaluate and maintain grade control and ore reserves. On the other hand, evaluation and grade control are relatively easy in bulk-low- grade deposits (4, 13). However, these deposits generally have a low margin of profit and are sensitive to mining and beneficiaton costs, price fluctuations and political costs. Industrial mineral deposits (5) often must be evaluated on the basis of their behavior, rather than by chemical analysis. Environmental impact generally increases with the scale of the operation, but certain elements or minerals have especially high impact effects (7, 11). In the exploration phase there is no production control of sampling procedures and careful geological observations are particularly essential. The greatest number of problems is related to the oxidized outcrop where the chemical environment of the ore body has changed and the contained values may have been enriched, depleted or values left unchanged (2, 6). Present evidence suggests that gold values may be very mobile under certain conditions (2, 6) and stable under others. Everything must be sampled in detail. Principal values and by-product or deleterious elements may vary dependent upon their position within the soil profile. Such factors as geomorphic position, erosion rate, vegetation, climate, etc., may affect the interpretation (1, 3). During the development phase it is equally easy to overtest, to have "paralysis by analysis," as to undertest (3, 6). Bulk samplng and testing are

Jan 1, 1985

By R. V. Ramani

"A computer simulation model of a dragline has beer developed for the study of alternative dragline deployment schemes for varying geological and mining conditions. In this paper, the mathematical aspects of the model, the input data and output results are discussed. An application of the model to a coal mine in eastern Kentucky is presented.IntroductionDraglines are very productive machines. To extend their operating ranges, they are operated in several modes such as advance benching, key cut, extended benching and pullback. Unfortunately, these variations result in low machine productivities. Appropriate methods to operate these machines must be developed on the basis of detailed analyses of dragline performance under varying geological and mining conditions. There are several standard engineering procedures for the selection of dragline, and design of a dragline pit (Ramani, Iroegbu and Manula, 1976). However, the complex interrelationship which exists among equipment, methods and natural conditions can be quantified only through orderly and systematic experiments.Computer simulation is well suited to studying these types of equipment selection and method layout problems. Several alternatives can be analyzed in a relatively short time by the modification of input variables. Also, the application of computer simulation models can significantly reduce the manpower and cost required for such analysis."

Jan 1, 1985

By R. A. Hevia

Florida Power and Light is the fifth largest investor-owned electric utility in the country. It has a service territory that covers 35 counties, or 28,000 square miles, 2.5 million customers, and serves 5.6 million people. The total installed capacity is 13,470 MW, generated by four nuclear units, 36 oil and/or gas fired units, and 48 gas turbine units. Traditionally, FPL has been an oil-based utility. In 1979, this dependency on oil became obvious when 42 million barrels of oil were burned during the year. At that time, it was also projected that, based on the current estimates of customer growth and available generation capacity through 1990, FPL's residual fuel oil consumption would increase from the 1979 level of 42 million barrels (6.7 million m3) per year to approximately 55 million barrels (8.7 million m3) per year by the mid-1990's. Concern over this was further aggravated by the fact that it was difficult to estimate both the price and quantity of fuel oil that would be available over the next decade since changes in the world market, decisions by oil producers and refiners, and international political developments would all affect the availability of oil. Also, at that time, the price of residual fuel oil had increased drastically, and there was no reason to think that these prices would soon stabilize. Thus, oil back-out became a primary objective of FPL and since then, FPL has been actively investigating ways to decrease fuel oil consumption.

Jan 1, 1985

By H. W. Schull

The Alligator Ridge gold deposits are located in northwest White Pine County at the southwest end of Alligator Ridge. Alligator Ridge is on the west side of Long Valley in the range of hills that separates Long and Newark valleys. The nearest population center is Ely, about 113 km (70 miles) to the southeast. Access to the Alligator Ridge gold mine from Ely is via US Highway 50 and the Long Valley Ruby Marsh Road. The latitude and longitude is approximately 39° 45' north and 116° 30' west. The Alligator Ridge gold deposits occur in the lower 61 m (200 ft) of the Mississippian-Devonian Pilot Shale formation, a laminated calcareous carbonaceous siltstone. The gold deposits contain carbonaceous, oxide, and jasperoid type gold ore. For more details on the geologic features of the deposits, see Schull, Sutherland, and Ilchik (in press). The discovery story of Alligator Ridge began in the spring of 1976 when the areas mapped as jasperoid on the 1:250,000 scale geologic map of White Pine County (Hose and Blake, 1976) were examined and sampled. Seventeen samples, about 23 kg (50 lb), were collected from an area about 0.65 km2 (0.25 sq mile). Of these 17 samples 10 reported atomic absorption values of less than 0. 1 ppm Au and 7 reported values in the 0.1 to 1.0 ppm Au range. In June of 1976 20 lode claims were staked to claim the area of the rock chip sampling. The claims' end and side center lines were used as a grid for soil sampling. Sample stations were 91 m (300 ft) apart and sample lines were 229 m (750 ft) apart. The samples were sieved to - 180 µm (- 80 mesh). Out of 99 soil samples, seven samples reported Au values in the 0.1 to 1.0 ppm range. Of the seven auriferous samples, five were located over the jasperoid outcrops previously sampled; one over unmineralized Pilot Shale a few hundred m (ft) downslope from some Au-bearing jasperoid; and one from a 15 x 15 m (50 x 50 ft) talus outcrop area of hitherto unnoticed mineralized Pilot Shale. Subsequent sampling, mapping and drilling would show that this 15 X 15 m (50 x 50 ft) outcrop area was the top of the Vantage 1 ore body, about 1.27 Mt (1,400,000 st) of over 3 g/0.9 t (0.11 oz/st) Au. Late in the summer of 1976 about 30 more 1.4 to 2.2 kg (3 to 5 lb) rock chip samples were collected in the course of preliminary geologic mapping. This mapping and sampling showed that the gold-bearing jasperoids occurred at the contact between the Pilot Shale and the underlying Devils Gate Limestone. Rock chip samples of 0.1 ppm Au or greater were restricted to the jasperoids and the mineralized outcrop area of Pilot Shale located by the soil sample survey. Rock chip samples from the area of mineralized Pilot Shale were in the 3 to 5 ppm Au range. Activity resumed in the summer of 1977 with a more detailed soil geochemical survey. The jasperoid areas were defined as large geochemical gold anomalies of values greater than 0.1 ppm and locally greater than 0.2 ppm Au. Soil samples from the area of mineralized Pilot Shale outlined a greater than 0.1 ppm gold anomaly 61 x 152 m (200 x 500 ft) in size. Further geologic mapping showed that elsewhere, even where bleached and silicified, the Pilot Shale areas were geochemically very low in gold (less than 0.1 ppm Au). In November, 1977 twelve rotary percussion drill holes were drilled to test the gold-bearing jasperoid areas and the mineralized Pilot Shale area. Drilling of the jasperoid areas showed that the jasperoids gave way at shallow depths [less than 24 m (80 ft)] to unmineralized unaltered Devils Gate Limestone. A five hole cross pattern was drilled to test the area of mineralized Pilot Shale. Four of the five holes re-

Jan 1, 1985

By W. W. Roepke

The Bureau of Mines has developed an interactive computer program that enables mine operators and others to identify the effect of cut-ting system changes on relative dustiness at the face. The program, which simultaneously evaluates machine parameters, coal seam parame-ters, and operator-controllable parameters, was developed for use on any microcomputer using BASIC programming language. The program allows the user to change one or more of the cutting system parameters at a time to see how these changes affect relative dustiness. A complete program listing and flowchart are included along with operating in-structions and sample outputs. An example showing how to use the program is also included.

Jan 1, 1985

By William A. Vogely, DeVerle P. Harris

INTRODUCTION Perspective The phrase "minerala resource appraisal" is widely and loosely used to refer to any quantitative description of a naturally occurring source of fuels, metals, or nonmetals. This leads to confusion when mineral resources are so conceived, for the term refers generically to information on stocks-mineral endowment, resources, reserves, and potential supply-that differ in ways that are important in economic analysis. Mineral resource and other stock measures- these are not flows, e.g., the supply of minerals-have precise technical meanings, which are presented in this paper. Quotation marks are used to separate the nontechnical use of mineral resource from the technical. The term appraisal also leads to some con- fusion because it too is loosely used. When an appraisal employs probability and statistical methods, the appropriate term is estimationb, not appraisal or assessment. This paper presents a conceptual framework or mineral resource information which renders technical, or well defined, relationships of mineral endowment to physical attributes of the earth's crust and earth processes, as distinct from economic values, and identifies estimation approaches that lead to different economic measures of stocks and flows. An important result of this approach is the distinction between the relevance of mineral resource information to economic and policy issues about potential sup- ply (stocks) and dynamic supply (flows across time). With regard to policy analysis, this paper recognizes that mineral resource information has a cost as well as an imputed value. Such a treatment implies that there is an optimum state of resource ignorance, or enlightenment, for a given policy issue and that the relevant economic issue is the selection of that information strategy and appraisal methodology that is indicated by the optimum state. Until the initiation of the OPEC oil embargo, the demand for information on mineral re- sources and potential supply was limited to occasional studies commissioned by Congress or the President of the United States. In these, mineral and energy resources remained loosely de- scribed. When quantitative estimates were supplied, they were not rigorously made, and the estimates and the methodology accordingly escaped close scrutiny. Usually, neither the geo- logical nor economic bases for estimation were carefully described or critically examined. The imposition by OPEC nations of the embargo on oil caused a sudden change in the public and scientific demands for specific 'resource" appraisals, especially of oil and of uranium. These

Jan 1, 1985

By J. Keith Haddock

"Introduction The Luscar company, Forestburg Collieries Ltd., operates the Diplomat Mine located 14 km south of Forestburg, Alberta. Production is now at a declining rate from the 1 million tonnes achieved in 1978 as the reserves are being depleted. Three pits are operated at this prairie strip mine utilizing draglines and stripping shovels to uncover the coal. The coal is hauled to a tipple on site for shipment by rail or highway vehicles or is hauled directly to the adjacent Battle River Generating Station. Geology The mine is currently extracting the Battle River seam on the north side of the Battle River. This is the lower-most seam in the Horseshoe Canyon Formation and is the only one present in the area, the upper seams having been eroded by glaciation. The seam lies generally flat and varies from 2.0 to 5.0 metres thick. It lies under glacial till overburden varying in depth from 5.0 to 12.0 metres. The mineable coal extends from the side of the Battle River valley where it outcrops, to approximately 2.5 kilometres to the north. The mine is spread out over a distance of 8.0 kilometres in an east-west direction. Reserves and Coal Quality After over 30 years of mining at Diplomat, there are now less than 1 million tonnes of mineable reserves remaining on the property. With the commencement of coal production from the Paintearth Mine in 1981, supply to the Battle River Generating Station, formerly Diplomat's biggest customer, is being transferred to Paintearth. Rail shipments and domestic supply will continue until reserves are depleted. The coal has the following specifications:"

Jan 1, 1985

By Michel Chouteau

"A very conductive zone was revealed in 1977 and 1978 by magnetotelluric (MT) measurements carried out near Ste-Mathilde, 6 km northeast of La Malbaie . In order to identify the structure causing the anomaly, thirty-five MT soundings were recorded in 1980 and 1981 on and around the conductor within a radius of4 km. Results confirmed that the conductor is of limited extent (less than 2 km by 0.4 km). The proposed model is a highly conductive vertical slab, the top of which is within 200 m from the surface. At a depth of approximately 825 m this structure joins a conductive layer which extends to the northwest but not to the southeast. The large conductivities and the depths involved can only be explain ed by a fractured zone flooded with electrolytic solutions, by graphite veins or by metallic mineralization (sulphides). The former seems to be the most likely hypothesis because an EW fault running across this zone could have allowed percolation of water and the leaching of disseminated pyrite out of a mylolisthenite filling the fault.IntroductionLa Malbaie is located 130 km northeast of Quebec City on th e North Shore o f the St. Lawrence River (Fig. I). Four major groups o f rocks have been mapped in this area: charnockitic rocks to the west , granitic rocks in the north east and southeast, gneiss and pegmatites northwest and south of La Malbaie , and Paleozoic sediments in the Clermont-La Malbaie Valley and along the shore of the St. Lawrence River (Rondot, 1966). Two major features dominate the structure of the region: Logan ' s line , a major thrust fault beneath the St. Lawrence which separates the Grenville Province to the north from the Appalachian regime to the south, and the Charlevoix Crater , a large Paleozoic impact crater that created an almost perfect annula r structure centred on Mont des Eboulements (Rondot, 1970). Ste-Mathilde is a village lying 6 km northeast of La Malbaie, just outside the ring-like graben zone caused by readjustments after meteorite impact. The survey area spreads over a granite body which is more than 2 km long and 0.6 km wide, surrounded by a wide migmatite zone which is injected by many bodies of pegmatite, the latter likely related to the granite body (Fig. 2). A zone of leptynites lies west of the area. An east-west trending fault (FA1) related to the Charlevoix Crater runs mid -way across the survey area; a second parallel fault (FA2) south of FAI separates the gneissic rocks from the Paleozoic sediments. The overburden is usually thin with outcrops frequently encountered except for the centre of the survey are a where 10 m of glacial sediments are expected (E. Gaucher, 1982, personal communication)."

Jan 1, 1985

By Peter Tegart

The discovery of gold in the Toodoggone River area is credited to Charles McClair who mined placer deposits in 1925, reportedly valued at $17,500. After he and his partner went missing in 1927, efforts to relocate their workings resulted in the formation of Two Brothers Valley Gold Mines Ltd. in 1933, in which the legendary Grant McConachie (first president of CP Air) played an active role. This was the age when the prospector first utilized the airplane to reconnoitre remote areas. What greeted the observer from the air was an area rich in orange and yellow colours characteristic of gossans formed by the oxidation of sulphides. However, Samuel Black, a Hudson Bay Company fur trader, had also noted in his diary as early as 1824, the unusual and many gossanous colours in the headwaters of the Finlay River. These gossans, coupled with white limestone bluffs and the presence of placer gold, attracted the first reconnaissance of the area by Cominco in 1929. Cominco was ever active in remote areas at this time. They staked and worked several base-metal showings hosted by limestone at the margins of intrusive stocks. These early workers also obtained erratic high gold assays from chalcedony float samples found in creeks draining into the Toodoggone River. However, because the samples gave inconsistent assays, no concerted effort was made to locate their source. Except for the occasional horse-supported prospecting party of the late 1940s and early 1950s, the area did not receive much attention until 1968. Work until this time focused on the base metal lead-zinc showings which contained attractive silver credits. Gold was not an attraction because of the set price established by the US government. The late 1960s saw the northward expansion of porphyry copper exploration into the Toodoggone. A program of gossan soil sampling (gossans which had attracted the early workers) was carried out by Kennco Explorations (Western) Ltd. in 1966-1967. They analysed for base metals in the field, using a cold extraction method. The Kemess copper- gold prospect was staked as a result of anomalous copper values from this early geochemical program. In 1968, Kennco continued the program of silt traversing and field geochemical testing. The samples were further subjected to multielement analysis consisting of copper, molybdenum, lead, zinc, cobalt, nickel, and silver at Kennco's North Vancouver laboratory. Several anomalous creeks, high in combinations of copper, molybdenum, and silver, were outlined. Some initial soil grids were also established. The fall of 1969 saw the return of Kennco prospector Gordon Davies and geologist Bob Stevenson to check out a well-defined molybdenum, scattered copper and silver anomaly in soils from a grid on the Chappelle claims. The subsequent analysis of several selected quartz felsenmeer floats yielded one assay which ran in the order of 0.25 kg/t (8 oz per st) gold and 2.2 kg/t (70 oz per st) silver. Subsequent trenching on the Chappelle claims exposed the source of float in a 4- m (134) wide vein of high grade gold-silver mineralization. These results led quickly to the realization that the district had precious metal potential. Subsequent exploration in the period 1969-1974 by Kennco resulted in the discovery of most of the gold and silver occurrences on the Chappelle and Lawyers properties. Several other gold and silver occurrences were found in this district by Cordilleran, Cominco, and Sumitomo, working the district during this period. Conwest optioned the Chappelle in 1973 and explored underground by adit entry as part of a one-year program. In 1974, Du Pont of Canada Exploration Ltd. optioned the Chappelle claims and in March 1980, using reserves developed on the A vein, placed the Baker mine into production at a rate of 90.7 Vd (100 stpd). The Amethyst zone on the Lawyers property, 8 km (5 miles) north of Chappelle, was found in 1973 by Kennco using continued, persistent followup prospecting of silver silt geochemical anomalies. A silt anomaly in the order of 3.4 ppm silver occurred in a stream flowing 300 m (984 ft)

Jan 1, 1985

By Canada Ernst & Whinney

INTRODUCTION The principal objective of this chapter is to provide guidance in understanding and making effective use of published financial statements of mining companies. Although financial statements only represent a gathering together of information relevant to an enterprise's financial position and results of operations, they increasingly reflect the complexities of the modern day business environment. In the mining industry, a wide variety of accounting practices have evolved to deal with the unique aspects of the business in the absence of authoritative accounting pronouncements from standard-setting bodies. Given such complexities and divergent practices, financial statements of mining companies are not easily understood and cannot be used effectively as a tool in decision-making without a basic knowledge of fundamental accounting concepts, generally accepted accounting principles and their application in the mining industry. As such, this chapter is not restricted to a discussion of the accounting for the unique aspects of the mining industry. These aspects are dealt with at length but the text also includes a discussion of general accounting concepts and practices which have wide application in the mining industry. Frequent references are made in the text to international practices and to specific rules and requirements of individual countries. In this respect, the scope is restricted to four major mining environments, Canada, the UK, the US and Australia, all of which have made significant contributions to the development of generally accepted accounting principles. Acknowledgements This chapter was prepared under the direction of Ian Murray of Ernst & Whinney in Toronto, Canada. Contributions were received from Graham Butt, Mark O'Sullivan and Dominic Robinson, all from Ernst & Whinney in Toronto and Bill Duvall and Tom Schoenbaechler from Ernst & Whinney in Louisville, Kentucky, US. The authors would also like to acknowledge the assistance received from David Ferguson, Don MacLean, David Taylor and Susan Zoutman from Ernst & Whinney, Toronto, from the UK and Australian practices of Ernst & Whinney and from Ernst & Whinney International. FINANCIAL STATEMENTS - ELEMENTS AND CONCEPTS Financial statements were originally a stewardship report to owners to satisfy them that management had given a proper account of the resources with which it had been entrusted. Today, the number of users of financial statements has expanded to include the following groups: - shareholders, present and prospective; - lenders, present and prospective; - financial analysts; - regulatory authorities; - taxing authorities; - labour unions and employees; and - creditors and customers. The expectations of these user groups differ. For example, investors and lenders require information that will indicate the adequacy of their security and the profitability of the enterprise; taxing authorities will be concerned with the concept of income; labour unions and employees will focus on the profitability of the enterprise. Ground Rules for Preparing Financial Statements Responsibility for Financial Statements Financial statements are the representations of management. This may strike the reader as a rather obvious statement. It is important to remember, however, the role of judgment in accounting. Notwithstanding the promulgation of accounting standards in the developed countries, considerable flexibility remains in the selection of accounting practices and methods and in their presentation. Arguably, there is more flexibility in the mining industry as few countries have developed standards to deal with its unique aspects. Accordingly, financial statements are as much a product of management's perspective and philosophy as they are a compliance document.

Jan 1, 1985

By H. W. Hitzrot

Introduction Mechanical classifiers consist of a settling tank with parallel sides and a sloping bottom equipped with a mechanism which continuously agitates the pulp and removes the settled solids. The functions served by mechanical classifiers include the following: (1) allow the particles larger than the desired size to settle in the tank and provide an overflow product with a minimum of oversize particles, (2) produce an overflow product of sufficiently high solids content to meet the requirements of the subsequent processing steps, (3) agitate the pulp and permit separation of the entrapped undersize particles so they can report in the overflow product, and (4) drain and remove the underflow solids from the settling pool. Various types of mechanisms have been used to agitate the pulp and remove the settled solids, which include: (I) endless belt and chain drags, (2) reciprocating rakes, (3) helical flights mounted on a rotating shaft which extends through the settling pool, (4) helical flights inside of a rotating drum which contains the classifier pool, (5) troughed conveyor belts forming the settling pool in the concave curve of the belt closely following the tail pulley, and (6) low-speed impellers agitating the underflow settled in the apex of cone-type mechanical classifiers.23 The principal use of mechanical classifiers has been in closed¬-circuit wet grinding; however, this application has been widely displaced over the past few decades by the hydrocyclone. The hydrocyclone installation, including its feed pump, offers lower capital costs and requires less floor space. Nominally it produces an overflow prod¬uct of higher solids content, compared with a mechanical classifier, for comparable classification size up to 400µm (35 mesh). However, these advantages of the hydrocyclone are being gained at the sacrifice of some of the advantages of the mechanical classifier. The mechanical classifier requires less power and has lower maintenance costs than the hydrocyclone and its feed pump. The underflow product from the mechanical classifier can have a higher solids content and contain less entrapped undersize particles than the comparable product from the hydrocyclone. Consequently, it is capable of operating at a higher classification efficiency. A reduced circulating load24, 25 results under these conditions in a closed-circuit grinding application. Other applications for mechanical classifiers include desliming, dewatering, and washing operations. Sand-slime separation may be achieved using one or more stages of mechanical classifiers. Typical applications would include washing and deslimining of concrete aggre¬gate or sand; glass sand; abrasives; oyster shells; phosphate rock; iron, nickel, and chromium ores; alumina; zeolites; solar salt; and precipitates from chemical processing. As an example for the latter, Bitzer26 recommended the use of mechanical classifiers for countercur¬rent cementation-in-pulp of copper from the leach liquor. Similarly, mechanical classifiers are used in uranium processing27 for separation of the barren sands from the pregnant leach solution. Depending on the particle size and the effectiveness of the sand¬slime separation, the sand product from mechanical classifiers may be drained to solids content approaching 84%. Thus, mechanical classifiers are frequently used as dewatering equipment for various applications, such as: 1) Make a product having suitable solids content for subsequent transport by belt conveyor. 2) Provide a drained product to reduce cost of drying. 3) Provide a drained, washed, heavy sand product for return to the circuit. 4) Recover fine values from dilute plant effluents from coal, sand, phosphate-rock, and iron-ore washing plants and from steel-mill flue¬dust scrubbers. 5) Drain residual reagents of a preceding process stage prior to conditioning with reagents of different characteristics, e.g., cationic¬anionic flotation of phosphate rock, iron ore, etc. Design and Operating Features The proper selection of mechanical classification equipment re¬quires that the properties of the solids and liquid are adequately de¬fined. The following descriptive information regarding the solids is desired: feed rate, chemical and physical composition, density, tem¬perature, size analysis, and desired separation size. For the liquid used, the following data would be needed: feed rate, density, viscosity, pH, and temperature. Settling Area. The pool area required to permit a particle larger than the separation size to settle depends on the density and shape of the particle and on the density and viscosity of the pulp within the classifier pool. These criteria of the solids and pulp determine the settling rate which, in turn, determines the settling area required. Determination of the settling rate by long-tube batch tests can be used to calculate the settling area. A theoretical approach for estimat¬ing the settling area requirements is discussed in Chapter 1, Classifica¬tion Theory. This procedure can be used when neither test data nor empirical data from similar operations are available. Data on settling-area requirements and settling rates have been compiled by the manufacturers of mechanical classifiers. The approxi¬mate settling area required for a particular separation size can be estimated by using the curve shown in Fig. 65. This curve applies for closed-circuit grinding applications. For dilute velocity classification in open circuit, desliming, the length of the overflow weir, W, multiplied by the weir's mean distance from the feed opening, E, is used as the design criterion, instead of the settling area, in sizing the classifier. The area requirements, W X E, for dilute velocity classification can be expressed in terms of volumetric flow, Q, and settling rate, Rs, as follows: W x E = Q/(18.06 Rs) where W and E are feet, Q is gallons per minute, and Rs is inches per second. Overflow Weir. The hydraulic head, and thus the velocity at which the overflow crests the overflow weir, is one of the factors controlling the particle size of classification. Consequently, the length of the overflow weir must be designed to provide the overflow velocity which allows the particles larger than the desired size of classification to settle in the working area of the pool. Obtaining the necessary

Jan 1, 1985

By P M. Hancock

The West Coast contains one of the world's giant placer gold deposits with production since the 1860s totalling some six million ounces (present day value NZ$ 3.6 billion). The deposits have been worked variously by hand, ground sluicing, hydraulicking and/or elevating, blocking out, deep leading and bucketline dredging. Since the sharp gold price rise of 1979 - 1980 gold production has increased steadily (in spite of the closure of the Kaniere dredge) to some 30 000 ounces (933 kg) in 1984. Production is primarily from some 100 medium scale mining, operations treating 50 - 200 000 m3 of auriferous late Pleistocene fluvial gravels year. In spite of their economic value the deposits remain only poorly investigated and many fundamental questions relating to the origin and formation of the deposits remain unanswered. This paper attempts to describe the geology of the deposits and outline a genetic model for their formation, and then discusses some of the economic aspects and current limitations and opportunities of the growing alluvial gold mining industry of the region.

Jan 1, 1985

By Charles E. Glass

The stabil ity of engineered embankments subjected to earthquakes has received considerable attention in the last 10 years, but most of the effort has been directed toward stability of earth dams. Based upon past performance, earthquake- induced failures on non-impounding mine waste structures will likely correspond to small, local slumps or debris slides, and their stability should be considered as an integral part of mine economic planning. As such, stability considerations should include earthquake hazard, characteristics of earthquake ground motion, dynamic slope stability, and the impact that waste-dump failures have on mine operations. Numerous techniques have been proposed for analyzing the stability of embankments subjected to earthquakes. Before choosing an analysis technique, it is worth noting two important differences between the dynamic response of waste embankments and natural slopes. First, waste embankments respond as structures having unique modes of vibration, which causes embankment motions to differ from nearby ground motion. Second, because of embankment response, accelerations can be different at embankment crests than elsewhere in the structure and occur at frequencies that do not correspond to input ground motion. Because of these factors, embankment response should be calculated prior to slope stability assessment. In this paper several analysis techniques designed to calculate slope stability are evaluated, and conventional pseudostatic techniques are shown to be inappropriate for dynamic considerations. Techniques to calculate dynamic stability should include embankment response, all characteristics of earthquake motion, and roughness along failure planes as input, and should provide a displacement time-history of the slide mass as output. Two techniques satisfy this criterion, and in this paper the LADRS technique is recommended for its versatility and simplicity.

Jan 1, 1985