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By David Penswick

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

May 1, 2003

By S. Goodman

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

May 1, 2003

By Lawrence Devon Smith

The Business Case for Sustainable Development ?What are SD & TBL? ?Investment Funds & Fund Managers ?Banks and Risk Aversion ?The Dilemma of Juniors ?Meet Your New Partners ?The Cost of Problems ?The Cost of Delays Sustainable Development ?Humanity has the ability to make development sustainable -to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs.? Our Common Future BrundtlandCommission, 1987

May 1, 2003

By Andrew Abraham

Continual improvement is the key to success in today?s competitive global arena. You require tools that promote dynamic quality management, deliver cost savings to your bottom line and provide the foundation for process improvement. ISO 9000 and ISO 14001 management systems and OHSAS 18001 are those tools. Since their inception, the benefits of ISO management systems and registration have been touted as the way to achieve better bottom line results. This spurred many companies to embark upon the road to registration with high expectations. The potential benefits of ISO management system implementation and third party registration that are commonly provided by Registrars and consultants are compelling adverts for success. ISO 9001:2000 is promoted as an essential tool for systematic efficient and affective management controls that provide a framework for analyzing errors and improving a company?s internal operational processes. It also allows companies to comply with internal and external customer and regulatory requirements thus continually improving the quality of their products and services and thus enhancing customer satisfaction. This, in turn, leads to greater customer recognition and increased market share. ISO 14001 implementation and registration may assist your company in reducing its litigation risk, raw material and energy consumption, waste disposal costs and possibly non tariff trade barriers. It should also provide continuity of operations, enhanced operational efficiency and consequently a competitive advantage in the market place. Registration of your ISO 14001 management system should also improve your company?s profile and credibility leading to regulatory flexibility and improved community goodwill. All of this will be a catalyst for improved morale and pride by employees and management alike. Likewise, OHSAS 18001, the latest certification specification for Occupational Health and Safety Management Systems supports Occupational Health and Safety legal and regulatory obligations and compliance, manages & controls Occupational Health and Safety risks and improves performance, safety culture and efficiency. OHSAS 18001 is an audit certification, and not a legislative requirement. Suggested benefits of implementation include reduction in accidents, lost time and associated liability and insurance costs and improving reputation and credibility through demonstrated commitment to health and safety. The foregoing increases access to new customers, joint venture partners and financing The skeptics say these are motherhood statements and lack corroborative evidence, i.e., ?Show me the money!?

May 1, 2003

By John Steele

The goal of this project is to detect the presence of objects behind haul trucks and to provide an alarm to the driver if such objects are detected. Objects of interest include people, pickups, other equipment, and large rocks. Another goal is to see if the system can identify the existence of a berm and determine the distance from the truck to that berm, so a safe backup distance can be computed and used as a reference. This paper presents results that demonstrate that such a system is feasible and includes results from work at a local quarry. Architecture of the system is provided and the various subsystems are discussed. Details of the algorthims are included and discussion of the issues involved in developing a fieldable system are also included.

May 1, 2003

By Knud Sinding

Mining firms are widely criticised for their adverse impacts on the environment. At the same time many firms in the industry devote extensive resources, both financial and managerial, to the reduction or elimination such impacts. Very considerable improvements have been made, although these are sometimes overshadowed by a few high-profile accidents, such as the occasional collapse of a cyanide-containing tailings dam. In parallel, much effort is also directed at projecting a positive environmental image, as witnessed by extensive environmental reporting, both on paper and increasingly through web-platforms. Mining projects today almost invariably involve some form of environmental protection. In industrial countries regulations in this area are extremely stringent, as is enforcement. In less well developed countries, regulation and enforcement may be weaker, but firms are in many cases and for a number of reasons committing themselves to high levels of environmental protection, even if they might get away without doing so. Research in the area of environmental performance of mining firms has so far paid much attention to concepts such as sustainability indicators and the sustainability of individual firms. Given the still raging debates about the appropriate way to determine the degree to which any given firm is sustainable (Welford 1995) as well as the usefulness of what will in the final analysis be a value judgement, anyone on the sidelines of the debate will come back to the fundamental issue, how is knowledge that a particular firm has been judged ?sustainable? going to be made use of. This issue remains unresolved, which may explain the lack of progress in formulating a useful definition of a sustainable firm The question addressed in this paper is not so much about what firms are doing on the ground or in any particular case of environmental protection, but more in the subsequent use of these efforts - and by extension - on the overall direction of corporate environmental strategy. The fundamental problem facing all mining firms is that they cannot easily benefit from unilaterally reducing their environmental impact. The firm can of course avoid liability and keep a variety of stakeholders happy and hence experience lower costs of obtaining the [input] resources they need (in a broad sense, not just minerals), but this represents only part of the opportunities available form pursuing an environmental strategy (Reinhardt 2000). The other part, which may have an enormous potential, involves the concepts of competitor management and product differentiation. The logic of keeping stakeholders happy has been most forcefully argued by Pfeffer and Salanchick (1978) who link the behaviour of firms in all domains to their ability to obtain the resources they need, at a cost that is lower than it would otherwise be (Pfeffer & Salanccik 1978). Several varieties of strategy can be included under this heading, including cost reduction and risk management. The alternative logic is to convince customers that they want to pay more for minerals supplied by mining firm X or directly attributable to mine Y, or by making all mineral users pay more. These two strategies, which may be referred to as product differentiation and competitor management, respectively (Reinhardt 2000) are related to the demand side of mineral supply, whereas cost reduction and risk management are related to the supply side. Mining firms have not pursued the demand side very much, if at all. This is probably due to the extreme difficulty of moving mineral products, bulky and unglamorous as they are, away from their

May 1, 2003

By Kent Zehr

Suncor Energy Inc. is an integrated producer and refiner of oil and gas headquartered in Calgary, Alberta. The bulk of revenue comes from the Oil Sands Group (OSG) operating in the McMurray formation of the Athabasca Oil Sands. Located some 25 kilometers north of Fort McMurray, Suncor OSG began life in 1967 as Great Canadian Oil Sands, the first operator to successfully enter commercial production of synthetic crude oils from the area. For most of the last decade, dramatic growth has been the standard mode of operation for Suncor OSG. Production of synthetic crude first reached 100,000 barrels per day in 1997 and less than five years later is averaging in excess of 200,000 barrels per day. Within this dynamic organization, Suncor Extraction is the business unit that processes run-of-mine ore into clean diluted bitumen for Upgrader feedstock. Extraction also delivers and places the barren sand and process affected water into tailings storage in one of several ponds from which water is recycled to support the various processes. For reference purposes, Extraction on a typical day currently receives more than 400,000 metric tons of oilsand ore, which is all processed to water based slurry for separation in one of two extraction plants. Separated tailings are disposed of as a slurry and the cleaned bitumen froth is diluted with naphtha and sent to tankage for storage until required by the Upgrading Unit. As a consequence, on a typical day Suncor Extraction pumps more than 1,000,000 tonnes of aggressive slurry into and out of the two extraction plants.

May 1, 2003

By Mark Rantapaa

Measurable improvements in throughput have been documented at Barrick Goldstrike due to increased ore fragmentation through efficient drilling and blasting techniques. A decrease in throughput at the Autoclave, due to increasingly hard ore, was identified in early 2002. A team of individuals from the Open Pit and Process areas worked closely on the Drill-to-Mill (D2M) Continuous Improvement initiative to ensure that it would address the needs of both groups, with the target of actually improving throughput in future years, despite the projected harder ores. A series of tests were conducted to determine if adjustments to drilling and blasting could positively influence throughput. Better fragmentation and a subsequent increase in mill throughput were achieved through the use of: 1) Electronic caps for more precision and flexibility, as well as for allowing extremely fast shots. 2) Explosives with a higher velocity of detonation (VOD), to provide for improved shock energy. 3) Improved distribution of the explosives by decreasing pattern spacing. Early tests indicated a significant increase in throughput when processing identified harder ore. It is anticipated that the total process throughput (hard and soft ore) will increase by six tph in 2003 due to the improved fragmentation of the hard ore. Barrick Goldstrike?s D2M initiative includes roaster ?hard ore? (BWI >17), as well as autoclave ?hard ore? (BWI >15). Approximately six million tons of D2M material is expected be shot in 2003, a relatively small amount compared to the 150 million tons to be mined. The benefit of additional ounces produced should far outweigh the additional drilling and blasting costs.

May 1, 2003

By Robert Hamilton

Aur Resources is Canada's leading copper mining company with producing mines and development projects in North, Central, and South America. Copper production from Louvicourt Mine in Quebec, Quebrada Blanca, and Andacollo Mines in Chile had a record of 245 million pounds in 2001. Located 600 km North of Montreal, Louvicourt Mine is a joint venture between Aur Resources (30%), Teck Cominco (45%), and Novicourt (45%). Aur Resources is the mine operator with 280 employees working to produce a copper and zinc concentrate. In operation since 1994, the mine has produced a total of 12,606,000 metric tonnes of ore grading 3.6 % Cu, 1.5 % Zn, 26gr./m.t Ag, 0.9gr.m.t Au. This highly mechanized mine reached full production in August 1995 at 4,000 tpd. From 1996 to 2001, the average mine production rate was more than 4,300 tpd. The Louvicourt Mine continued its record of solid performance in 2002 and is expected to continue to do so for the balance of its 2.5 years mine life.

May 1, 2003

By Adrian Dance

The Antamina orebody is a geologically complex, polymetallic skarn located in the Peruvian Andes. A range of copper and copper-zinc ores are campaigned separately through the concentrator producing copper and zinc concentrates as well as lead and molybdenum by-products. Ore type classification at Antamina is based on chemical assays; geological or lithological variations are not considered. Consequently, each ore type demonstrates a wide range of concentrator performance. Antamina is currently implementing a system to track ore movements from the shovel face to the concentrator. Relatively sophisticated models of the ROM and coarse ore stockpiles ahead of the mill will be used to account for the variable delay between mining and milling. One of the numerous benefits of ore tracking is the ability to directly associate the measured concentrator performance with a physical location in the orebody. Using existing mine planning software, three-dimensional models can be created of such performance measures as metal recovery, concentrate quality, operating cost and reagent consumption. Such a database of information allows the true value of different ore sources to be determined. The value of an ore source is conventionally measured as metal content (individual or combined ?equivalent?) with a cut-off grade applied to indicate some base level operating cost. However, the true value of an ore source should include dynamic factors like haulage cost, reagent use, smelter penalties and even prevailing metal prices. If an ore source is considered from all perspectives rather than simply its potential to deliver value, the concept of ?ore? becomes more flexible. Any ore source that reveals itself to be unprofitable can be eliminated from the mine plan or possibly blended with others to improve its value. The ability to predict mill performance ? and thereby profitability ? is a powerful tool. In an operation such as Antamina, where managing ore sources, campaigns and the delivery of a variety of concentrates in a narrow timeline to customers is a daily challenge, prediction is the key to success and improved efficiency.

May 1, 2003

By Charles Tkaczuk

In order to remain competitive the mining industry must keep up with changes in technology. Many innovative technologies from the mining perspective are commonplace in other industries. A ?Global? review of technologies will often reveal existing technologies that can be innovatively applied in the mining industry. Industries, which are rife with proven solutions include, medicine, biotechnology, security, manufacturing, telecommunications, etc. This paper addresses the communications aspect of mining where greater productivity, lower costs and the ability to quickly react to mining related events is obtained through an increase in remote monitoring and operating control. A review of the communications systems in place globally reveals technologies that, with minimal modification, can be immediately applied to the mining environment. We discuss the concept, advantages and implementation of existing communications technology from an industry that is not usually associated with the mining industry. This technology will form the basis of a solid platform on which can be built a state-of-the-art process monitoring, control, and communication system. This lays the groundwork for providing one solution to the underground mining industry?s most difficult problem, establishing a reliable, maintainable and cost-effective underground bi-directional wired/wireless data, video and analog communications system. We need look no further than our own doorsteps to find such a solution. The cable that you see coming from the simple green or brown box on the boulevard into your home contains hundreds of television broadcast channels, FM radio channels and data channels. And if you have a set-top box, you are in control of it all. The Cable Television Broadcast Distribution System suppliers of today are at the leading edge of converging all the different methods of communications onto a common carrier, coaxial cable or fibre optic cable. There is no fundamental difference between providing a reliable communications network to a city/neighbourhood/home/personal computer than there is to a mining operation/underground level/equipment or person. The principle is the same. Only the application is different. Realizing this, we can capitalize on the efforts of other industrial sectors, to solve our communications problem. Where else can you find a solution to a problem that is mature, having been developed with the input of thousands of engineers, and having hundreds of millions of dollars spent on research and development, manufacturing, distribution, global presence and engineering support?

May 1, 2003

By Michael Samis

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more fundamental level by their differences in risk discounting. Real option valuation applies the risk-adjustment to the source of uncertainty in the cash flow while the DCF method adjusts for risk at the aggregate level of net cash flow. This seemingly small difference is the reason why the real option method is able to differentiate between projects according to each project?s unique risk characteristics while the conventional DCF approach cannot. This paper provides an overview of the real options and DCF valuation frameworks and discusses the differences in risk discounting that exist between the two methods. Using grade-school mathematics, this paper clearly demonstrates how, with real options, a unique project risk discount can be calculated which is directly linked to the project?s unique risk profile. It also highlights why the DCF method fails in this regard and shows why a call to ?increase the Risk-Adjusted Discount Rate? is an incomplete solution at best. Finally, a heap-leach project and satellite reserve development project are valued with both techniques and the difference in investment conclusions is explained in terms of the risk-discounting concepts discussed here.

May 1, 2003

By Eric Nelson

The paper point out the structural openings and the localization of ore bodies. Structural openings in rocks constitute the primary permeability network for the formation of most hydrothermal ore deposits. The distribution, geometry, density, and orientation of ore bodies in structural openings are controlled by two primary factors: the far and near field stresses and the mechanical properties of rock. When stress controls the orientation and kinematics of faults and fractures in the absence of pre-existing weaknesses, ore shoot orientation is perpendicular to the fault slip vector and can be predicted by kinematic analysis. However, when structural openings form along pre-existing weaknesses, ore shoot orientation cannot always be predicted by kinematic analysis. Because we can classify ore bodies based on the types of geological structures discussed above and the variations that naturally occur from material property heterogeneity, exploration for hydrothermal ore deposits should include analysis of geologic structure and evolution, rheological variations, pre-existing weakness, and fault kinematics to evaluate structuralcontrols on localization of ore bodies.

Apr 22, 2003

By Peter Yen

This session consists of five papers. Three involved research on the properties of grout materials, specifically ultrafine cements and polyurethane grouts. Two papers present the development of soil grouting technology and monitoring methods. Of great interest are the papers on ultrafine grout penetrability testing focusing on the pressure filtration effects encountered in permeation grouting applications (Ericksson, Stille and Mittag, Savidis). The comparison testing of hydrophilic and hydrophobic polyurethane grouts submitted by Vrignaud, Ballivy, Perret and Fernagu assessed the long-term performance of these materials for repairing saturated cracks in concrete, subject to thermal expansion and contraction. Two very practical papers present the development of soil grouting, where permeation, fracture, replacement, jetting and other grouting techniques are utilized. The papers by Lees with Chuaqui and Warner present experience with ultrafine and other commonly used grout materials. Methods to measure and monitor the injection process and verify production progress are discussed.

Feb 10, 2003

By John Davie

We used a Remtek survey in Glenrock and had very good luck with it when we first started the initial investigation. We would have loved to have used that more but my understanding is the equipment is hard to find. It also requires a flooded mine workings. If you're in a dry mine the communication between the two holes is not quite as successful.

Feb 10, 2003

By George Burke

Of the three projects, particularly the extensive Nimitz II (downtown) project, a single system, which was part of the operation, was used to control the spoil. Spoil control was continuous with the work since a vacuum truck and crew was used to suck up the spoils as they came out of the borehole. So, the whole job was kept clean both during operations and at the end of the shifts. On the Sand Island project, a double system was used. Larger spoil quantities were contained within the shaft limits during the work and the cleanup or disposal of the spoils was performed during excavation.

Feb 10, 2003

By Dawn Shuttle

In trying to find a grout, or some kind of stabilizer that would work in this application, we established some performance criteria. Of those, what I controlled the most was viscosity, then I had a whole list of other criteria. I needed a long, controllable gel time, durability and the ability to set and stabilize the soil. So I looked through a lot of different stabilizers, some really crazy ones and also the typical chemical grouts that are used. The typical chemical grouts were eliminated because of long-term durability concerns, the need for having extended gel times, and several other concerns. I would be happy to discuss that with you further after the talk if you're interested. But, generally it was based on viscosity, gel time, and the need for extended gel time. In terms of the relative density of the sand many other grouts could have been used. But the main issue was trying to develop this way to do low pressure grouting that would not cause invasive disruption of the site. We couldn't go in and grout it, put centers, so most of the other grouts wouldn't work for various reasons. The forty percent relative density samples were prepared by plubiation. That was both during the cyclic testing stage of the research, which happened a few years back, and also during the box model and the laminar box models at RPI. In terms of what criteria were used to determine the success of the grouting, when I initially started this work what I did was take the grouted samples and I subjected them to cyclic triaxial testing. What I did was take a look at the cyclic deformation resistance of different concentrations of grouted colloidal silica treated sand. I looked first at 20% concentration because I wanted something that I knew worked and then I gradually decreased to 15%, 10%, and 5%. What I was most concerned with was that it did not liquefy and that it was able to hold together it and experience some deformation. But most importantly it needed to not liquefy. So, that was the biggest issue in determining the success of the grouting. In terms of the centrifuge modeling it was done by looking at several components: from looking at the pictures of the bending moments, looking at the acceleration records and how the acceleration records were transferred through the soil, looking at the reduction in the lateral displacement and those kinds of issues. So let me show you the difference.

Feb 10, 2003

By G. Stuart Littlejohn

In spite of recent concerns in certain European countries, I believe that silicate-ester grouts will continue to be employed in practice, unless more cost-effective inorganic grouts are developed for the treatment of fine sands. It is also noteworthy that over the past 40 years, there has been a record of good experience where silicate-ester grouts have been used in ground improvement. Nevertheless, there is now a need via the European Standard EN 12715 (2000) "to assess the environmental impact, particularly the toxicity of the grout and grout components, and their effect on ground and drinking water should be considered before grouting." "When testing the grouting material for environmental impact, the following aspects should be considered: ? Whether during processing, transport or grouting, substance can be generated or released which could be hazardous to the environment or the grouting crew; ? Whether noxious substances can spread upon mixing with ground water; ? Whether reaction products can be produced or released which influence the water quality; ? The type of particles eroded from hardened grout; ? Chemical reactions between hardened grout and the ground water."

Feb 10, 2003

By Masaki Kitazume

Five papers were presented orally to the topics of Jet Grouting and Deep Mixing. The session was started with a brief introduction by the moderators. Following the oral presentation, floor discussions were directed by the moderators. A brief introduction of each of the oral presentations is provided before each discussion.

Feb 10, 2003

By Stephan A. Jefferis

I presume that the questioner is not asking about the reduction of sulfate in groundwater to hydrogen sulfide as a result of biological activity promoted by organics in the grout hardener and that the question relates to sulfate attack on cementitious grout systems. For the project in Spain presented in my paper, we used a very high pulverized fuel ash (PFA) content in the cementitious material. This gives good sulfate resistance and indeed the chemical interaction will actually cause the permeability to drop for about 50 years without any question of sulfate attack and damage to the whole thickness of the grout - of course there will be attack at the exposed face of the grout where it is in contact with the contaminated groundwater. The mix had over 75% PFA, and also a very high overall cementitious content. The mix was the contractor's design and showed excellent behavior in laboratory proving trials. In grouts as distinct from concrete, PFA gives significantly better sulfate resistance than ground granulated blast furnace slag which is often used in Europe as a component of bentonite-cement mixes for slurry trench cut-off walls.

Feb 10, 2003