Search Documents

By S. Averill, B. Schreiner, V. Sopuck

The La Ronge. Kisseynew, Glennie Lake and Flin Flon domains. the main focu for gold exploration in the southeast part of the Saskatchewan Shield, were subject to continental glacial ice advances from the northeast during the Quaternary. Based on forty-four auger hole along with surficial mapping, the general Quaternary stratigraphy in this area is observed to be composed of a lower till unit , an overlying stratified unit of glaciofluvial sand and gravel and/or a glaciolacustrine silt-clay unit. an upper till. and an upper tratified unit. The lower till is commonly found throughout the geological domains except where it has been eroded in glaciofluvial or fluvial channels. Glacial Lake Agassiz fo rmerly covered most of these prospective domains. The lacustrine deposits associated with the lake impede surficial geochemical surveys including soil. lake sediment. and biogeochemical surveys. The approximate extent of clay cover can be predicted from beach elevations. For instance. in the Waddy Lake area. clay i not known to occur above about 1,400 feet (425 m) elevation. Exploration techniques are hampered by clay in at least one third of the volcanic belt. Thi s influence is indicated by the fact that nearly all gold prospect found to date are located above 1,400 feet (425 m) while the area of clay cover is vi rtually unexplored. The upper till i related to a minor ice readvance. This till is the medium often sampled during soil surveys in the area . lts value as a geochemical ampling medium is dependent on the extent of erosional contact with bedrock highs on the lower till. Those areas which are relatively free of lacustrine and fluvial deposits are those where surface geochemical methods work best. In the Waddy Lake volcanic belt approximately 25-50% of the area may be suitable for surficial surveys. The area of the Star Lake prospect occurs above the 1,500 foot (460 m) elevation and was not covered by Lake Agas iz. The effectivene of till sampling as a surface sampling medium was tested in those areas above the clay level. Till orientat ion surveys were carried out at the Star Lake property and the Tower Lake prospect (Waddy Lake area) within the La Ronge Domain . Gold grain counts and analy es of heavy mineral concent rate from 7 kg surface ti ll samples were used to delineate dispersion trains down-ice from mineralization. In addition, the clay fraction and a 30 g (-80 mesh) subsample from the same till sample, were analyzed for gold . In the Star Lake area, ice direction is subparallel to the strike of several narrow northeast trending auriferous structures. arrow dispersion trains down-ice from known

Jan 1, 1986

By Rodney R. Koch

The phys ica l properties of gold should faci li tate its detection. However, the average concentration of gold in the ea rth's cru st precl udes the ability of geophys ical methods to detect the metal directly. In order to effectively pursue geophys ical detection and location of gold mineralization there must also be geological input - i.e. a model. This will lead to the selection of the appropriate geophy ical techn ique(s) in the fo llow-up programs. Interpretation of the fie ld survey data is of con iderable importance in expl oration geophys ics. Analytical techniques such as cont inuation, fi ltering, and spectral analys is, are now routinely empl oyed in the analys is of survey data to aid the interpretation process. The uccessful application of geophysical methods and the use processing techniques is demonstrated by two recent Saskatchewan discoveries. The first, the Star Lake 21 Zone, with reserves of 230,000 tons grading bener than 17.14 git Au associated with a disseminated sulphide quartz-bearing shear zone yielded geophysical anomalies that were distinctive, obvious, and would have lead directly to its discovery. The econd , the Laurel Lake Prospect, with ore grade intersections of 28.0I git Au and 52 .46 git Ag· over 5.49 m, resulted in numerous geophysical anomalies. However, none of these anomalies demonstrated association with the mineralization until processed results indicated that structural features crosscuning regional trends were important cont rol mechanisms for the mineral ization.

Jan 1, 1986

By Robert Macdonald, William Coombe, John F. Lewry

Gold occurrences have been known in the La Ronge Domain for many year . Mineable reserves have more recently been outlined and there is every prospect of a major gold camp being established in the domain within this decade. The La Ronge Domain lies in the Lower Proterozoic 'Trans-Hudson Orogen' and is part of a collage of Early Proterozoic crust comprising volcanoplutonic arcs, batholiths, associated volcaniclastics and volcanogenic sediments lying between the Superior Craton to the outheast and the reworked Archean basement/Aphebian cover terrain to the northwest. The domain has several lithostructural subdivisions, the most important of whjch , from a gold exploration point of view, is the Central Metavolcanic Belt. This belt is composed dominantly of a range of metavolcanic rocks and gabbroic to granitic intrusives, which geochemically resemble younger subduction-generated 'primitive' arcs developed on oceanic crust. U-Pb zircon geochronology indicates that the arc volcarusm and pre- to late-kjnematic plutonism occurred about 1890 Ma to 1850 Ma ago. The belt has an attained grade of upper greenschist to amphibolite facies and is relatively undeformed , though high strain zones occur locally. Most gold occurrences in the La Ronge Domain have been found in the Star-Waddy Lakes area of the Central Metavolcanic Belt, and in the Sulprude-MacKay Lakes area to the south which is interpreted as a tectonically dismembered part of the main belt. Both tratiformand vein-type gold occurrences are present in the domain; vein-type predominate and form nearly 90 per cent of the occurrences. The stratiform-type occurrences show a regional lithological a sociation with iron-rich sediments within proximal felsic volcanjc sequences. Some vein-type occurrences appear related to brittle fracturing associated with intrusive emplacement (the magmatic-hydrothermal "syn:' and "subvolcanic" veins) and faulting. However, most of the vein-type occurrences exhibit a spatial association with regionalscale ductile shear and other high strain zones, and were probably formed by metamorphichydrothermal processes.

Jan 1, 1986

By Tim Neil, O&apos

Introduction On the banks of the Columbia River, about halfway between Seattle and Spokane, sits Wenatchee, WA. It calls itself "the apple capital of the world." And it has a gold mining history that dates back to the 1880s. It was just outside Wenatchee - three blocks outside, to be exact-that Asamera recently dedicated its $60 million Cannon underground gold mine. At full production, it is estimated the Cannon mine will yield between 5 and 5.6 t/a (160,000 and 180,000 oz per year) of gold. That would make Cannon the largest North American underground gold mine to be brought into production this year. Cannon should also be among the top 10 of all North American gold producers. Asamera officials project Cannon's operating costs at about $4.8019 ($150 per oz). At that rate, the mine should also be one of the lower cost and most profitable gold mining operations in North America. One reason for low operating costs is low electric power costs. The Cannon operation will be paying about 2.5 cents per kWh for hydroelectric power supplied by the Bonneville Power Authority. Proven and probable ore reserves at Cannon are in excess of 4.7 Mt (5.2 million st). Reserve grades average 7.29 g/t (0.21 oz per st) of gold in three ore zones, in order of discovery - B, B West, and B North. The ore bodies could have been mined by open-pit methods. But underground mining was chosen for environmental reasons. In addition, the rich B North ore body extends beneath a nearby horse stable and arena. The Cannon mine area comprises some 20 km2 (5000 acres) in Chelan County. The mine site is located at the 305 m (1000 ft) elevation in Dry Gulch at the base of the Cascade Mountains. The initial estimate of mine life for the Cannon operation is eight years, depending on gold prices. But Asamera officials believe the Wenatchee area has excellent potential for future gold discoveries. Asamera, Inc. of Calgary, Alberta, owns 51% of the Cannon property, through its wholly-owned Asamera Minerals (US). Breakwater Resources Ltd. of Vancouver, British Columbia owns 49% of the operation. The Cannon mine is named in honor of longtime Asamera, Inc. executive and current company director, geologist Donald G. Can¬non. It was he who first brought the Wenatchee property to Asamera's attention and urged the company to pursue it. Asamera is a major explorer and producer of oil and gas. Its Cannon operation is the largest and most significant to date in its mining division, according to Rob¬ert G. Welty. He is Asamera's chairman and chief executive officer. It should be noted there was an element of serendipity involved in Cannon's development. The development program be¬gan when geologist Cannon visited the Wenatchee area. He was visit¬ing old mining districts. He liked what he saw. The Cannon property was eventually optioned for ex¬ploration, including a modest drilling program.

Jan 12, 1985

By Peter J. Szabo

The mining executive works in a cyclical industry. His employment is subject to the vagaries of the marketplace. Boom and bust has always been the industry's story. "Big oil" failed in its mining effort. This left emotional and financial scars on many mining families. One must remember that mining executives always play a high-stakes game. Given the cyclical nature of the mining industry, mining executives need to take care of their own financial security. The mining executive that does not plan for his financial security in this cyclical business is playing Russian Roulette with his future. Take a look at those people who have reached their later years with the mining industry. One usually finds three categories of people. Those few in the first group have been fortunate enough to have worked for one company. They have survived the winnowing process of cyclicality, political problems, and takeovers. They have reached normal retirement age. For them, the retirement years are usually comfortable. People in the second group have worked for those same mining companies. But these people have been forced out by early retirement. Or they have been laid off for cyclical, takeover, or political reasons. The third group includes those who have held many positions in the mining industry. Probably not until their later years are they fully vested, if at all, in a pension program. The first small group, then, is the exception. The others, unless they have taken care of their financial security, are doomed to later years of financial problems, stress, and unhappiness. Too late in life, many realize the harsh realities of failure to plan and implement a personal financial program. Mining executives go to some of the world's leading mining schools, to learn how to make money. The curriculum is technically strong. Most mining graduates are familiar with the intricacies of discounted cash flow, present value, and the Hoskold formula. But few of these same mining schools require courses on personal financial planning. Such courses could give mining students a realistic foundation and the mechanisms with which to cope with their cyclical profession. An executive has only three sources of money. He can make money at work. He can put his money to work. Or he can get money from charities, such as government programs. Of these three sources of money, money at work has the best chance of providing financial security in later years. The mining executive must think of the day when he will be too old to work and contribute to the market place. At this point, the quantity and quality of his investments will determine whether his later years will be secure. Along with the Mining Engineering Handbook, two key books should be included in the mining executive's library. These are Venita Van Caspel's The Power of Money Dynamics and Benjamin J. Stein's Financial Passages. These books contain the basic concepts of personal financial planning so critical to an individual's financial survival. Venita points out the simple formula that is the key to financial independence: Time + Money + American Free Enterprise (Rate of Return) = Opportunity to Become Financially Independent Chart 1 shows that this is not a trite formula. The chart shows the dramatic effects of compounding over time. The chart also shows at various yields what a $2000 a year Individual Retirement Account (IRA) contribution will accumulate. Chart 1 (from Money magazine) is based on the future value of an ordinary annuity. It shows that the key to amassing a small fortune by the time a person reaches his 50s is starting to save methodically in his 20s. This, coupled with the highest yields consistent with safety of principal will ensure financial security. There are significant effects from compounding money over time. Every year the decision is put off to save for later years will cost a person dearly by the time he reaches his 50s. For example, consider the decision to put off for one year a $2000 IRA investment at a 12% return. Starting it at age 31 instead of 30 will cost the executive almost $100,000 by age 65. What if the executive waits until age 35 to get started with his $2000 a year investment? He will then lose nearly $400,000 by age 65. Stated another way, the executive costs himself this $400,000 simply because he did not invest $167 a month for five years. $167 a month - that's less than an inexpensive second car payment. This $400,000 pool of money could provide the executive a $40,000 a year income at age 65, assuming a 10% return on invest-

Jan 11, 1985

M.S. Azun I have many objections to the content of the author's paper. Before discussing it, however, I would like to repeat the property of semivariogram function. Second order stationary properties of regionalized variables (ReV's) such as semivariogram function y(h) are perfectly known in geostatistics. Also, the kriging equations in the language of mathematical statistics using second order stationary properties are well understood. However, the way to use the sample (estimated) semivariogram function in any one of the kriging procedures is vague. The sample semivariogram function is given as follows: [ ] where N is the total number of samples, Xi is the sample value at the i - th location, Xi+h is the sample value at the i + h - th location, and h is the distance among the samples. An estimation variance of sample semivariogram function of first lag is smaller than that of higher order lag. The theoretical semivariogram function reaches the variance of samples asymptotically. But this is not easily observable because of the larger variation involved in the estimate of semivariogram function. In general, an estimation procedure is done for h = 0, 1, 2, up to the greatest integer less than N/2, even though sample semivariogram function can be computable through N-1. After estimating semivariogram function, the critical question of how to model sample semivariogram function arises. As seen in the above equation, sample semivariogram function is discrete and can be smoothed by the model being selected. Therefore, modeling of sample semivariogram function is the most important step in geostatistics. It not only smoothes a discrete function but also affects the results of the kriging procedure. When the only aim is to model the semivariogram function, which is the basic point of the author's paper, one can employ any fitting techniques, such as curve fitting, or any arbitrary functions, which are called submodels in the paper. The term "arbitrary function" is used rather than "submodel" because there is no basic understanding of developing them. The author suggests that the sum of those submodels can also be used for the modeling of sample semivariogram function. The combination of any arbitrary functions brings many problems instead of giving an insight of the domain structure considered. The author used two arbitrary functions and the nugget effect in response to sample semivariogram function (Fig. 10). For the same example, he stated that the parameters involved in the mixed arbitrary function model can be accepted when the discrepancy between sample semivariogram function and the model is small visually. For verifying the fitting behavior of any selected model, one should not be contented with the visual satisfactory. Some statistical measure such as goodness of fit has to be used. The author's practice is no more than an exercise in curve fitting without any fundamental understanding or conceptualization of the underlying physical mechanism. Furthermore, the selection of any model is not an easy task if the purpose is the search for the "best" response to the observed second order properties of ReV's. I suggest that the Markovian model (Azun, 1983), on the basis of a theoretical understanding of underlying mechanism, which gives more information about the occurrence of regionalized variables, is used to respond all properties of ReV's. There are a lot of problems for modeling of one-dimensional sample semivariogram function. Thus, it is not appropriate to go to higher order dimensional sample semivariogram function modeling. In the meantime, I would recommend that one can connect the values of standardized sample semivariogram function rather than simple values of semivariogram function in the two-dimensional estimation. The standardized values can be computed in dividing the semivariogram function value by the number of sample pairs involved in each lag regardless of the directions. In conclusion, geostatistics is an interdisciplinary area in mining that uses the principles of mathematical statistics. Thus, it should not violate any probabilistic and statistical rules. When Matheron was developing the theory of geostatistical study in the early years of geostatistics, many mining people had a reservation accepting the geostatistical tools. However, this does not mean that we, the geostatisticians, might try to convince those people using some "strange" tools or rules as some authors implied (Baafi and Kim, 1984). Instead, we have to develop and explain the geostatistical tools staying only in the framework of statistical concepts and properties. References Azun, M.S., 1983, "Stochastic Process Modeling of Spatially Distributed Geostatistical Data," Columbia University, Ph.D. Thesis. Baafi, E.Y., and Kim, Y.C., 1984, "Discussion - Comparison of Different Ore Reserve Estimation Methods Using Conditional Simulation," Mining Engineering, Vol. 36, No. 3, p. 280. Reply by J.M. Rendu The interactive method proposed by Rendu allows practitioners to develop semivariogram models that take into account not only the numerical information obtained by sampling, but also highly significant additional information that often cannot be quantified. The geology of the deposit - including hypotheses concerning its genesis, sampling methods, assaying methods, and mathematical methods used to calculate the semivariograms - all have an influence on the numerical results obtained and on how these results should be interpreted. If all the information concerning the spatial distribution of values in a mineral deposit was contained in the sample values, it could be argued that statistical techniques alone would produce optimum models. However, this is rarely, if ever, the case. Methods that allow the user to take into account his experience and his geologic understanding of the deposit should not be rejected for the sake of theoretical statistical purity.

Jan 11, 1985

By Lawrence Neal Post

Introduction Synthetic soda ash production began to decline in the late 1930s. This was due to high operating costs and waste disposal problems. Since soda ash was used as a major component in manufacturing glass, an alternate method of producing that chemical was necessary. A process to produce soda ash from trona was developed by FMC Wyoming Corp.'s predecessor, as well as an economical way to obtain trona. Existing trona operations are located about 40 km (25 miles) west of Green River, WY. Five operators presently mine trona in this area. FMC's property has 153 km2 (59 sq miles) leased. Its eight shafts reach 488 m (1600 ft) deep to the uniform trona deposit. The seam ranges in thickness from 2.4 to 3.6 m (8 to 12 ft). History Egyptian tombs, dating from 4000 to 3000 BC, contained mummies preserved by an embalming process using soda ash. For many years, soda ash was produced by burning marine plants, then dissolving the soluble material (sodium carbonate) from the ashes. The name soda ash is derived from this method of production. In 1791, Nicola LeBlanc developed black ash, or salt cake, from salt, sulfuric acid, coal, and limestone. This process remained in use until 1863, when Ernest Solvay developed a method for producing soda ash from salt, coke, and limestone with ammonia as a catalyst. This Solvay process was widely used. And, in the 1930s, there were 17 plants in the US alone. High plant operating costs and waste disposal problems, however, necessitated finding an alternative to the Solvay process.

Jan 10, 1985

By Ray E. Harris

Introduction A resource of more than 122 Gt (134 billion st) of minable trona and mixed trona and halite underlies an area of about 3400 km2 (1300 sq miles) west of Green River, WY (Culbertson, in preparation) (Fig. 1). In 1982, the total domestic consumption of soda ash (refined trona) was 6 Mt (6.7 million st) (Kostick, 1983). About 90% of this came from Wyoming trona. This enormous deposit occurs in the Wilkins Peak Member of the Green River Formation that is of Eocene age. This formation is derived from sediments deposited in a large lake named Gosiute. Lake Gosiute occupied the Green River Basin in southwestern Wyoming some 38 to 54 million years ago. The Wilkins Peak Member represents a restricted, evaporite-rich cycle of deposition when the trona deposits were formed. A total of 42 trona beds are known. Of these, 25 are of sufficient thickness and extent to be considered minable (Culbertson, in preparation). The production of sodium compounds from the trona deposits in the Wilkins Peak Member began in 1896 when wells were drilled within the present boundaries of the town of Green River. The purpose of the drilling was for extraction of sodium carbonate brines. Sodium carbonate (sal soda) was removed from these brines at a plant in Green River. Bedded trona was discovered in 1938 in a core from an oil well drilled south of Westvaco. In 1947, the underground mining of trona began. Production has continued from 1948 to date. Currently, five companies are mining trona and producing soda ash from the Wilkins Peak Member in Wyoming. Additionally, Allied Chemical Co. mines and processes trona for Church and Dwight's sodium bicarbonate (baking soda) operation in Green River. Competition in the soda ash industry depends primarily on the efficiency of mining and refining, allowing for lower-cost production. Newer plants and mine designs should increase efficiency. Solution mining holds promise as an even lower-cost method of mining. Employment in the soda ash industry is declining since the newer mining and refining methods are less labor intensive. Declines in employment, however, may be offset as production increases. Due to the large resource, the availability of minable trona should not be a problem for perhaps hundreds of years. Geology of Wyoming trona deposits Forty-two beds of trona or mixed trona and halite occur in the

Jan 10, 1985

By G. T. Lineberry, L. Adler

Due to safety-imposed constraints on clearances for mobile bulk handling equipment, it is necessary to optimally select a unit based on speed and size. The unit cannot be both large and fast. Since output is proportional to both size (or capacity) and speed, the combination must be carefully examined to maximize output. A simple graphical procedure and a calculus-based solution are presented to accomplish this. While the procedure applies to all mobile bulk handlers, as an example of the solution technique, attention is focused on shuttle cars. Background Major variables To fully define a bulk handling problem, the conditions, equipment, and activities must be characterized. The conditions and activities, when lumped together, are termed "encumbered space," since they "act to impede motion, as with a burden" (Lineberry, 1979). The insertion of mobile bulk handling equipment into what is already a difficult set of conditions and activities compounds the state of encumbrance, as limited space is competed for by many normal and life support systems. Long (1972) recognized the effects of design criteria, including road width, on haulage vehicle speed and, therefore, on production. Velocity -clearance curves Velocity-clearance curves are either available or can be constructed in the field. A preliminary set of curves for average conditions and activities is shown in Fig. 1, where clearances are only for the side of the vehicle (Lineberry and Adler, 1984). These curves set the safe speed limits for a vehicle operating at given clearances, under given conditions and activities. When feasible, velocity-clearance curves should be constructed through field measurement and observation. Curve construction should also consider haulway roughness, distances, and operator skill, as well as loading and dumping characteristics. It should be noted that haulage capacity determination is a total systems problem, not one just dependent on velocity and clearances. Production requirements and company capabilities also influence capacity determination.

Jan 10, 1985

By K. A. Grace

K.A. Grace's article advocates usage of the terms describing resources as defined by the US Bureau of Mines (USBM) and the US Geological Survey (USGS). Originally recommended in 1943, the terms were revised in 1976 and again in 1980. Mr. Grace further recommends that the term reserves should be severely restricted and that it should encompass mining and processing factors. The list of references quoted in the article does not, however, mention the study concerning reserves that was made over a period of almost four years by a joint Committee on Definitions. This committee was sponsored by three societies - the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME), the Society of Economic Geologists (SEG), and the American Institute of Professional Geologists (AIPG). Most of the detailed work was done by a working party appointed by the Society of Mining Engineers (SME) of AIME. After studying previous definitions in the US as well as in the United Kingdom, Canada, Australia, France, and other European countries, the following definitions were proposed and accepted in 1974 by the SME board of directors. (Ore reserve definitions in Rhodesia, South Africa, or New Zealand were not mentioned as having been reviewed.) Table 1 lists definitions from MINING ENGINEERING, July 1975. Notice in Table 1 it was mentioned, under Resources, that the definitions of reserves were recommended for the purposes of commercial evaluation. It was further stated that the terminology adopted by the USBM and the USGS, as released to the public, covering resources, was recognized as such. Mr. Grace also recommends that reserve calculations should allow for future losses in ore tonnage, ore grade, milling, and smelting. Unfortunately, it might take years to develop a prospect after it has been discovered. Mining methods have to be tested before being finalized in order to know what tonnage of ore is going to be lost, or how much dilution is likely to occur. The same problems are present in concentrating or in smelting. Operating mines usually know how mined grade compares with ore reserve grade. They can usually predict fairly closely what their final metal recoveries are probably going to be. It is, however, expecting too much to have to delay quoting reserves from say a recently drilled prospect. Any responsible mining geologist or mining engineer (or company for that matter) should state several things about an ore reserve calculation: that it is or is not a preliminary estimate only; that estimated grades have not been diluted to allow for a future, as yet unknown, mining method; that metal recoveries are or are not only tentative, based perhaps on drill hole samples only or on no metallurgical testing at all. Reserves of a partially explored prospect are always quoted when it becomes necessary to raise capital. If they are described as preliminary only (really just tonnage and grade estimates and not true "reserves") in addition to being accompanied by some of the items just mentioned, nobody is going to be misled. If, on the other hand, a report by a member of the SME or SEG is intentionally misleading, the individual must be reported and eventually disbarred from his or her society. To summarize, let us stay with the definitions of ore, ore reserves, and related terms as recommended and accepted by SME. I might add that on occasion I have used a fourth category in my ore reserve calculations, namely Geologically Possible Ore. This category is more or less the same as Inferred ore defined by the USBM and USGS. I have never given a grade to this category, which may be based only on geological mapping, geochemical sampling, or geophysical traversing.

Jan 8, 1985

By Christian F. III Baiz

Introduction A new mining agenda is before us. Born of government policies and world economies, the years ahead will show reduced growth. Metals, mining, and most other natural resource industries are inflation dependant and capital intensive. For these, a long period of contraction of outmoded and costly capacity will evolve. In some cases, this will be supplanted by new, lower cost capacity. But this will occur only if the cost of production - including cash operating and debt service costs - comes in at or below current market conditions. The industrial outlook for metals mining can be characterized as bearish. A US bank economist said mining companies planning their five-year forecasts should take current market conditions and straight-line them to the end of the decade. With low growth and low inflation, the real price of metals will remain flat or decline slightly. As a result, capital funding will be problematic. The low-cost producer will succeed. That means only the producer with low cash costs and low principal and interest costs per unit of production, will succeed. Gaining a perspective One must look back 30 years to see the evolution of the capital markets, for metal mine financing. This period can be divided into two economic periods. The 1950s were a time of stable economics. Mining companies earned and reported good profits. They had good corporate creditworthiness. In essence, mining companies of the 1950s were highly self-reliant. When equity infusions were needed, they were easily obtained. Financial management kept long-term debt low. Fixed rate, long-term financing was readily available in the long-term bond markets. The commercial banks of the 1950s were rarely used by the mining industry. When necessary, mining companies went to the banks for short-term financing - the kind that was needed for working capital requirements. Changing rhythms In the old rhythm there was an orderly market. Even into the mid-1960s, 75% of world annual copper production was controlled by eight companies: two in the UK, one in Belgium, and five in the US. During times of poor market demand, these producers would control supplies to the market. They took their losses out of retained earnings. Capital was easily restored during the ensuing good times. The new rhythm called for copper to be an economic means to a political end. Third World copper producers brushed aside the market fundamentals of commodity economics. Yet, the political solutions of these countries - their lack of response to the market - have seldom achieved their original objectives. Each commodity has its own old and new rhythm. Aluminum may have a similar rhythm, coming 10 to 20 years later than copper. By the late 1960s, changes were occurring. Inflation was on the rise. Ore reserve quality was falling. As a result, capital expenditures were necessary to maintain existing output. These costs created an increase in corporate leverage, thus adding to inflation and rising interest rates. Indicators A comparison of the gross national product (GNP) deflator index, consumer price index, and the metal mining deflator index is instructive. (Fig. 1 and Table 1). With 1972 equal to 1, note that the metal mining deflator reached its lowest point in 1967. From that point, the metal mining deflator has accelerated severely for 16 years. Only two minor downturns occurred during the business recessions of the mid-1970s and the early 1980s. In essence, Fig. 1 shows that while GNP has grown modestly, a miner's dollar in 1972 would require $3.48 in 1980. This is an almost 17% compounded growth rate over that eight-year period. Beginning in the late 1960s, for the first time in mine financing, the risk of success shifted from the corporate balance sheet to third parties. Limited-resource financings were taken up by banking syndicates that accepted certain of these risks. The lender needed to be well acquainted with the types of risks to be evaluated. These include resource quality and quantity, construction and completion, capital and operations costs, market risks, force majeure, and political and exchange rate risks. Project financings became the basis whereby mining companies were able to maintain their borrowing capacities. In essence, the lender was willing to share some of the project risk while only receiving lenders' returns on these investments. Over the last two decades, mineral project financings have become highly complex transactions involving multicurrency, multi-

Jan 8, 1985

By Maribeth Amyot, Y. J. Wang, S. S. Peng

Introduction The impact of computers on individuals and businesses increases each day. And the mining industry is no exception. The growing number of short courses, symposia, and feature articles in journals on the subject of computers is indicative of the developments and interest in their application to mining. Given this interest and the growing importance of computers, a legitimate concern is the computing background of graduating mining engineers. Based on a sample survey, this paper presents the current status of computer education in Accreditation Board for Engineering Technology (ABET)-accredited mining engineering programs in the US. Specific topics addressed include hardware and software available to students, integration of computers into curricula, concerns of mining educators, and historical and anticipated trends in computing education. Methodology Nine of the 19 ABET accredited mining engineering schools (as published in the SME-AIME Guide to Minerals Schools) were surveyed. Interviews consisting of open-ended questions were conducted with a knowledgeable faculty member from each of these schools. This was done to obtain an overall view of computing in mining engineering programs. The intent was not to evaluate nor compare individual schools, so a complete census was deemed unnecessary. The minimal deviations between the responses to the subjective questions reinforces the credibility of the sample as being representative. Results Hardware Most of the mining engineering schools polled had access to hardware on three scales - mainframe computers available university wide, minicomputers available in the college or department, and microcomputers available at all three levels. Without exception, each school had access to mainframe and microcomputers. Minicomputers, however, were not available at every school. The mainframe computers have been in place the longest. The predominant mainframe currently on campuses is the IBM model. Mainframes were once the essence of all applications. But the improved availability and capabilities of smaller machines have afforded users a viable alternative. The increasing practice in education of assessing charges for time used on the mainframe - as opposed to no charge for time on the mini- and microcomputers - makes use of the smaller machines attractive. Conversely, much of the mining engineering software is only operational on mainframes. Sometimes this restriction exists because the requisite speed or storage inherent in the software can only be met by the mainframe. More often, however, it is because the software was developed when mainframes were the only machines available, and it has not yet been adapted to run on a smaller machine. At the schools polled, many mining engineering problems that are well suited to microcomputers are being solved on mainframes simply because microcomputer software is not available. Minicomputers are available at the department or college level in many mining programs. DEC is the most popular make. Often, the minicomputers were installed to alleviate the inconveniences of attempting to access and use an overcrowded mainframe, to avoid being charged for time used on the mainframe, and to meet the needs of a specific research project. The minicomputers are currently used much more for research than for teaching applications. Therefore, minis are seldom used by undergraduate students. Microcomputers have become extremely popular at mining schools within the last five years. Generally, some form of computing policy or strategy was established near the time the first microcomputers were purchased. This was formulated in part to ensure consistency, or at least compatibility, in the type of machines acquired. Microcomputers were subsequently selected based on the established computing policies; ma-

Jan 7, 1985

By Adam H. Zimmerman

Introduction Noranda, like similar businesses, is suffering the pain of previously unheard of currency relationships, a cost structure built in better days, and conditions of gross oversupply possible in almost any commodity. Indeed, it does seem like the worst of all possible worlds is out there before us. To understand a Canadian natural resource company, you must know how the country is organized. So far as natural resources are concerned, Canada is not Canada. Canada is 10 provinces and each own the resources situated therein. Thus, the conditions of extraction, exploitation, and operation are all set by the province, while the conditions of trade and currency are set by the Federal government. This means that what may be the rule in Newfoundland may not be the rule in Manitoba or British Columbia. The second thing is that the Canadian currency has been a satellite of the US dollar for a long time. This means that we hold the unenviable and unjustified position of being the country with the second strongest currency in the world. What this has meant to us is what it has meant to an American operator. Since 1980, a pound of copper fetches 214% more for a Chilean than it does for us and a pound of zinc 115% more for a Belgian. From an American point of view, Canada is favored because its dollar is valued at 25% to 30% less than the U.S. However, because of industrial indiscretions in years past, Canada has a locked in labor cost disadvantage that is very hard to cope with. Canada has a unique situation with its labor unions. Many of the unions are, or have been, internationals and therefore gained undue strength in early days. Canada has a third political party of socialist persuasion. It is entirely funded by dues from laor union members. Thus, we have a politicized workforce. And finally, we have a public service that has the right to strike. This had made the public service unions by far the strongest now in Canada. What this means to the mining industry is that there is somebody out there blazing the trail. The unrelenting power of these public service unions probably creates a climate more conducive to excessive wage settlements in industry than would otherwise be the case. Study, Work, and Pray So what do we do when times get tough? In simple terms, we study a lot, we work harder, and we pray a great deal. We study a lot in terms of learning hitherto unknown strengths and weaknesses of our products, processes, and operations. We work hard in the sense that we do everything possible to improve our productivity. And we pray a lot because, so far, anything else we have done has not been enough. Some years ago, Noranda recognized that its principal base and precious metal operations were diminishing. To provide for the future, we should branch out into other resource type operations. These might be countercyclical and also perhaps a little more permanent. For this reason, Noranda entered the potash, aluminum, and forest products businesses. This, of course, was a 'brilliant' strategy that was much applauded in its early days. We built an excellent potash mine, the smallest inte-

Jan 6, 1985

By William A. Griffith

The recent recession has severely impacted the performance and results of virtually all of our natural resource companies. The depressing climate continues to linger and recovery maybe sometime away. Problems remain for resource companies in the steel and petroleum industries as well as the mining business. In February, at the AIME Annual Meeting in New York, an All-Institute session presented a variety of views on the situation. A. T. Yu, chairman of ORBA Corp., Mountain Lakes, NJ, organized presentations by top management personnel of four natural resource companies. This well attended session heard management strategems for the present and views for the future. A compilation and synthesis of these presentations, gathered by Dr. Yu, are presented here for ME readers. Leading off will be William A. Griffith, president and chief executive officer of Hecla Mining Co., Wallace, ID. Other speakers presented here include Wilfred P. Schmoe, executive vice president of Du Pont Co., Wilmington, DE; Frank W. Luerssen, chairman and chief executive officer of Inland Steel Co., Chicago, IL; and Adam H. Zimmerman, president and chief operating officer of Noranda Mines Ltd., Toronto, Ontario. First, then Griffith's remarks. Introduction The key to successfully managing a natural resource company in austere times is good management in good times. In other words, position the company during prosperous times to survive the times when the well dries up. Although we know how to manage properly, for various reasons we sometimes do not do it. We forget the lessons of history. We allow ourselves to be carried away by our egos. We fail to position our companies properly in good times. As a result, in bad times we find ourselves in deep trouble. We need constant reeducation in the things we already know. In the natural resource industries, proper positioning in good times involves becoming a low-cost producer, retaining the flexibility to pull in our horns, developing a lean and effective organization, and maintaining a healthy balance sheet. Nothing improves the chance of survival during austere times as much as being able to produce at a lower cost than your competitors. In our business, that means having low-cost mines - low cost because the ore bodies are high grade or favorably located, and because they are efficiently operated. It also means recognizing the competition. The key numbers are the cost to produce an ounce of silver or gold. Nothing else really counts. And our competition is every other precious metal mine in the world. Flexibility is important when one gets stuck with a high-cost operation, often because things do not work out as we expect. It is important to be able to shut down an operation quickly and easily, without high holding costs, and without disrupting the corporate organization. A lean and mean, effective organization of competent people is vital during bad times. A company will not have that if it is not developed and maintained during good times. Finally, a natural resource company has to develop a healthy balance sheet during good times if it is to survive the bad. Money in the

Jan 6, 1985

By J. Hoover

Real growth in the economy, increasing demand for electricity, and consumer stockpiling for a possible United Mineworkers of America (UMW) strike in October made 1984 a banner year for coal. Production and consumption climbed to record heights. Precautionary purchases brought inventories close to the peak levels of early 1981 when coal miners walked out for 72 days. Production slowed in the fourth quarter after labor and management concluded negotiations without a walkout. But output in every major coal producing state showed significant gains during the year US coal production totaled 807 Mt (890 million st) in 1984. This is a 13.8% increase over 1983 output. Lower production rates, principally in Appalachia, and sustained demand in the final quarter put downward pressure on coal stocks by the end of the year. Demand All market sectors experienced greater requirements for coal in 1984. Electric utility coal consumption increased 6.3%; exports climbed 4.8%; coke plants consumed 18.9% more coal; coal requirements in the other industrial sector expanded by 11.8%; and consumption in the residential/commercial sector rose 8.1%. Domestic consumption of coal reached a record 718 Mt (791 million st) in 1984. This is a 7.4% gain over the previous consumption high of 668 Mt (737 million st) in 1983. Electric Utilities The 4.6% increase in electric power generation in 1984 was coupled with expanding coal use relative to other energy sources. This resulted in a 6.3% rise in coal consumption, totaling 603 Mt (664 million st) for the year. Thirty-eight of 45 states where coal-fired electric power plants were operating shared in the 36-Mt (39 million-st) increase in electric utility coal consumption

Jan 5, 1985

By P. Rosten

US mine production of iron ore in 1984 showed some improvements compared to 1983. But reduced demand from the iron and steel industry caused temporary shutdowns of many iron ore mines and pelletizing plants. US raw steel production in 1984 was slightly above 1983, but still at a depressed level. Production was 83 Mt (92 million st), compared with 77 Mt (85 million st) in 1983 and 68 Mt (75 million st) in 1982. Two major production trends continued in 1984. They were the increased production from electric furnaces and the growing use of continuous casters. Electric furnace production included 33.2% of the steel poured in 1984, compared with 31.5% in 1983. Continuous casting was used for 39% of 1984 steel production, compared with 32.1% in 1983. Statistical Process Control Statistical Process Control (SPC) has taken on new proportions in the iron ore and steelmaking industries within the last year. This mathematical technique is used to monitor, control, evaluate, and analyze a manufacturing process. The technique charts variability of important quality parameters. Training and adaptation of SPC techniaues for process control have been initiated at Inland, Steel's Minorca, Pickands-Mather's Hibtac, Cleveland-Cliff's Empire and Sherman operations, and at Reserve Mining. One of these operations has requested its bentonite supplier provide SPC charts on quality specifications. Some of the steelmaking operations (Inland Steel, Bethlehem Steel, Dofasco, LTV Steel, National Steel, Stelco, Weirton Steel, and Wheeling-Pittsburgh) have set up SPC programs within their operations. And they also have insisted that some of their suppliers use SPC. Plant Shutdowns The permanent closure of Stelco's Griffith mine at Red Lake, Ontario, has been delayed by one year. This gives employees more time to adjust. The mine is now set to close in April 1986, instead of April 1985. Sidbec (Canadian government) and its other partners (including British Steel Corp., Quebec Cartier Mining, and US Steel) closed its iron mining operations at Gagnon, Quebec. The pellet plant has been leased to Quebec Cartier. New Iron Ore Operations The massive Carajas iron ore project in Brazil is scheduled to come onstream in Jan. 1986. It is to achieve full-scale commercial shipments by July of that year. The 66% iron crude ore requires only crushing and screening before shipment. The product consists of 83% sinter feed and 17% coarse ore. Annual production capacity will be 32 Mt (35 million st) when the project is completed. Principal customer for the ore is Nippon Carajas Iron Ore Co., a consortium of Japanese steel mills. The Arab Iron & Steel Co. (AISCO) has started up a $US300 million, 3.6 Mt/a (4 million stpy) iron ore pelletizing plant built by Kobe Steel Ltd., at Al Hidd-hide in Bahrain. By 1986, this grate-kiln-cooler plant will supply high quality iron ore pellets to feed direct reduction plants in the immediate Gulf area and Far East markets. Iron ore supplied from Brazil, Peru, India, and Mauritania provides the feed to the pellet plant. Hydrated lime (2%) is used as a burden.

Jan 5, 1985

By William R. Bond, Jim V. Rouse

Introduction The pressure/vacuum (p/v) lysimeter or soil water sampler has become useful for monitoring vadose zone or unsaturated zone water conditions. The soil water sampler was first introduced around 1961. It was used as a monitoring and research device for studies in agriculture and soil contamination around landfills. Since then, it has been used for many purposes. The use of p/v lysimeters at mining facilities to monitor for solution loss is a relatively new idea. The primary purpose of the lysimeter here is to function as an early warning system. It detects leakage through liners of tailings ponds, heap leach pads, and leachate holding ponds. Their use has proven valuable for collecting baseline data and detecting loss of precious leachate fluid. Different lysimeter designs are capable of vadose moisture sampling from near the surface and down to 90 m (300 ft). They are also capable of sampling soil moisture or saturation plume contaminants from areas not accessible by conventional water well installations. The most common installations are usually simple and cost-effective. In many cases, they can be installed without the use of heavy drilling equipment. A properly placed and installed lysimeter can detect solution leaks in several days or weeks. A conventional perimeter monitor well may take months or years to detect a leak of the same magnitude. A discussion on the general design and installation of p/v lysimeters will give an understanding of its versatility. Three case studies of lysimeter installations at mining sites will be examined in detail. Design, Installation, and Sampling Design The basic design of a p/v lysimeter chamber consists of a porous material through which the soil is drawn into a collection chamber. Access tubes run from the unit to the sample station at the ground surface. Most units currently available range from 25 to 76 mm-diam (1 to 3 in.-diam). The sample collection chamber, or body, can vary from 0.6 to 1.8 m (2 to 6 ft) in length. The body can be constructed of PVC casing or Teflon, depending on the installation desired. The collection chamber functions as a holding reservoir for the collected soil moisture. The intake, or porous material, on the lysimeter is the most complex and vulnerable portion of the unit. The pore size selection varies based on the needs of the installation, type of fluid to be sampled, and type of soil material surrounding the unit. Teflon (PTFE) and porous ceramic are used in fabrication of the porous inlet portion. When using a Teflon material, which is hydrophobic, a larger pore size of 70 µm is needed to overcome surface tension and draw water into the collection chamber. It is typically used at sites involving organic contamination, because of its inert properties. Ceramic material is generally hydrophilic, having less surface tension. Therefore, it has a smaller porosity range to conduct the moisture through the porous medium while under vacuum. Pore sizes may be selected from 0.16 to 6 µm, and can be manufactured for the specific needs of the installation. The final major design component of the p/v lysimeter is the access or sampling tubes. The tubes are usually of 6.3-mm-outside-diam. (0.25-in.-outside-diam). They are made of rigid polyethylene or flexible Tygon with a wall thickness of 1.5 mm (0.06 in.). The con-

Jan 4, 1985

By R. J. Sweigard, R. V. Ramani

G.F. Learning The paper by R.V. Ramani and R.J. Sweigard is a wonderful description of the labyrinthine web that has been spun about the mining industry by energetic bureaucrats and politicians over the past 50 years. The remedy for the problem, however, is not more of the same, but less. That may be difficult for the industry to achieve, for it is not a technical solution but a political one. And the current fervor for more detailed planning at all levels of government and private enterprise has become deeply ingrained. The authors recommend the provision of more information about mining and mineral resources to "macro" (i.e., government) land use planners. They apparently overlook, however, the already strong tendency on the part of most government land use planners to consider themselves omniscient. Thus, giving them more information about the technical problems of mining will only make them want to get more and more involved in the "micro" (private, site specific) mine development and production plans of the individual mining firm. In fact, this has already happened at all levels of jurisdiction from municipal to federal government. Examples are legion. The most effective way to ameliorate the adverse impacts of government land use planning on existing and potential mining operations is to: (1) introduce greater flexibility in the definition of land use zones by local and state governments; (2) adopt realistic and relevant ambient environmental performance standards in governing relationships between mineral land uses and concurrent or subsequent nonmining land uses; (3) allow greater leeway for economic considerations in land use decisions in contrast to the explicit legalistic approach now in vogue; (4) recognize that all minerals are not the same and that sand and gravel mining should not be treated the same as underground metal mining, coal stripping, oil field production, or in situ leaching; and (5) eliminate the notion that mining operators should be responsible for determining in detail the use of land by subsequent owners of mined land. This last bit of conventional ethic really makes no more sense than requiring the builders of every shopping center or government office complex to provide detailed plans for the use of that land when its use for shopping or government is ended. Did the builder of Ebbetts Field plan for Brooklyn after the Dodgers went to Los Angeles? Should the developer of the Bingham Pit plan for suburban Salt Lake City after the copper mining goes to Chile? The nation's mining industry must address these questions before further bankrupting itself to provide more data to planners and spending thousands of dollars per acre to create land that when reclaimed is worth only a few hundred dollars per acre. Reply by R.V. Ramani and R.J. Sweigard We thank Mr. Leaming for his valuable contribution. His views on the problems of land use planning and mineral resources are most welcome additions to our paper. As the title indicates, our paper was more concerned with the impacts of land use planning on mineral resource conservation than with the details of the planning process. On the whole, his five recommendations would be helpful for mineral resource conservation. However, we would suggest that the argument he presents for his final recommendation does not address the differences between mining as a land use and commercial or institutional uses. We believe that this difference is the crux of the issue. We share Mr. Leaming's desire to ameliorate the adverse impacts of land use planning. Possibly the most detrimental impact is the loss of mineral resources. Any development, whether mineral or community, that does not give proper consideration to other resources can result in permanent loss or sterilization of resources. With proper planning, some of these losses can be avoided. As our paper indicated, one factor that limits the consideration of mineral resources, and ultimately leads to their sterilization, is the generally inadequate levels of resource characterization and understanding of the unique nature of mineral resources and mining operations. The last point raised by Mr. Leaming is also important. In terms of reclamation and land use planning in mining districts, we certainly do not advocate spending more than what the results are worth. The main thrust of the paper was to explore the avenues for conserving the mineral resources so that, at some appropriate time, the issue of mining and reclamation can still be addressed.

Jan 4, 1985

By Sandy Clamage

"Seeing the elephant" was a term often heard from 1849 to 1859, the period of the great California Gold Rush. The phrase was used by those who dreamed of instant wealth that was believed could be found in California's virgin earth and mighty rivers. When news of fabulous gold strikes throughout the Mother Lode reached far away places, thousands of gold seekers left home and family to join in this incredible adventure. The barren, placid state of California soon became one of the most bustling, populous areas in the West. Before the Rush Before 1848, Mexico ruled California. It was then a remote region, isolated from the urbane world of the East by 2900 km (1800 miles) of scorching desert and impassible mountains. By sea, it was 29 000 km (18,000 miles) via Cape Horn. Spaniards and Mexicans settled the coastal lands on tracts donated to them by the Mexican government. The inland area was the domain of Indians and a few settlers who also had been granted estates by the government. Among those settlers was Captain John Sutter. He had been fortunate enough to obtain about 11 leagues of land (spanning 100 km or 60 miles in length) from Governor Alvarado of Mexico. Sutter was somewhat of a visionary and possessed a gifted tongue. He managed to receive most of what he desired with minimal trouble. Enchanted with Sutter's personality, Alvarado promised him Mexican citizenship. Alvarado also commissioned him to become "representative of the government and officer of justice on the Northern frontier." With uncanny foresight, Sutter began building a fortress on his land in the Sacramento Valley. It later became known as Sutter's Fort. It was more than just a fort, however. It also became a stopping place and home for many foreigners and Americans who traveled to California, and it eventually became the mecca for overland pilgrims. Sutter engaged in many projects. These included a cattle ranch, fur trade and trapping, and the construction of an irrigation system. With the influx of immigrants over the years, the community around the fort grew rapidly. Lumber was much in demand and Captain Sutter agreed to supply the necessary capital for a community sawmill. The site chosen was some 72 km (45 miles) northeast of the fort on the south fork of the American River in the town of Coloma. During the course of its construction, Sutter's carpenter, James Marshall, discovered a problem with the tailrace on the mill. First Strike Early in the morning on Jan. 24, 1848, Marshall was checking the tailrace. He noticed an object shining in a foot of water at the bottom of a ditch. He reached down and picked it up. His heart began to thump wildly as he realized he was holding a gold nugget. Sutter planned to keep the find a secret for as long as possible. He knew very well that he could become an extremely wealthy man. The ever loyal Marshall remained faithful to his employer and the pair did their best to obtain more

Jan 3, 1985

By S. D. Thompson

An AIME transaction by P.L. Allsman (1960), "Analysis of Explosive Action in Breaking Rock," contains many useful concepts applicable to blast design. Of special interest was the derivation of a heave blasting burden formula, which is important in establishing the maximum burden. Unfortunately, its derivation contains a fundamental error and then a compensating one. This formula was: [ ] The derivation used the impulse-momentum principle, with a 0.3 m thick (1 ft thick) radius of rock mass being acted on by an explosive impulse. However, the rock weight was not converted to mass by dividing by the gravitational constant. This mistake can be verified by checking the units in the formula, which resolve into m%-sec instead of meters. Adding the gravitational constant corrects this: [ ] If the minimum velocity is now taken as 0.3 m/sec (1 ft per sec), as was recommended, excessively large burdens result. Any appropriate rock velocity should be capable of throwing the rock mass a minimum distance so that the swell needed for breakage can occur. Unless the burden is extremely small and the bench height is very high, it is unlikely that a velocity of only 0.3 m/sec (1 ft per sec) will be sufficient. A review of the literature indicates that average rock velocities observed by camera studies typically range from 15 to 30 m/sec (50 to 100 ft per sec) (duPont deNemours and Co., 1977; Tansey, 1979). On this basis, a minimum rock velocity of about 15 m/sec (49 ft per sec) would be expected and not 0.3 m/sec (1 ft per sec). When a velocity of 15 m/sec (49 ft per sec) is inserted into the corrected formula, the results approximate those of the original formula with a velocity of 0.3 m/sec (1 ft per sec). The errors were approximately self-compensating [ ] References Allsman, P.L., 1960, "Analysis of Explosive Action in Breaking Rock," Transactions, AIME, Vol. 217, pp. 475-476. E. I. duPont deNemours and Co., 1977, Blasters' Handbook, 175th Anniversary Edition, Dupont, Wilmington, DE, pp. 233. Tansey, D.O., 1979, "The DuPont Sequential Blasting System," CIM Bulletin, Vol. 72, July, p. 80. Thompson, S.D., 1981, "Critical Review and Revision of Surface Blasting Practice," MS thesis, West Virginia University, pp. 308-316.

Jan 3, 1985