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By J. F. Myers

A bit of old philosophy: The optimist, the pessimist, The difference is droll; The optimist, the doughnut sees, The pessimist, the hole. This is a neat summation of the viewpoint of those engaged in "treating the crude mineral crust of the earth." Many of those in high places have reminded us during the year of the diminishing supply of the resources so essen-

Jan 1, 1948

Following a decline in direct and indirect employment in the minerals industry between 2000 and 2003, the situation reversed in 2004 and employment rose by 12 per cent. Furthermore, there are forecasts of continuing employment growth in the minerals industry in the immediate future. For those of us charged with promoting the virtues of a career in the minerals industry this is encouraging news, as it provides us with the evidence to promote the increasing employment opportunities of a healthy and vibrant industry. However, for many others û particularly the employers in this industry û the news is not so rosy. The jobs are there, and in increasing numbers, but the workers arenÆt! Employers right across the industry are finding it increasingly difficult to fill vacancies with suitably qualified and skilled employees and the competition is becoming fiercer. In the minerals and energy sector, questions are being asked and solutions sought on the industryÆs ability to attract and retain a skilled workforce. From many quarters û industry, government and the education sector, calls for urgent action are becoming louder. The reasons for this are well known û the nature of the work, the remote location, perceptions of the industry, an aging workforce, the gender imbalance, the shrinking demographic of school leavers. It is the latter I wish to focus on û the Generation Y demographic û those who have recently left school, those who are in higher education or have recently entered the workforce, or those who are still at secondary school. These young people are the next cohort of potential employees for the industry. But our need for them appears to be greater that their perceived need for us! How do we engage them so they are informed about the industry? How do we inform and advise them so they are prepared to consider further education and training in disciplines and skill areas relating to our industry? How do we guide and motivate them to give it their best shot and work in it û at least for part of their working life? These are fundamental questions that many within the industry have been grappling with for quite some time. Let me share with you some of the strategies that the Minerals Council is implementing to address this issue.

Jan 1, 2005

By Valerie Kollonitsch

Functional mineral pigments are used in large quantities in paint, paper, plastics, rubber, textiles, agriculture, and several other industries. U.S. consumption in 1969 is estimated at over 5 million tons a year, valued at nearly $150 million, as shown in Table 1. Originally extender pigments were employed only to lower cost. They were thought of merely as adulterants to replace more expensive prime pigments and binders. However, over the years their role has become better understood, and today their main functions are: - Increasing strength, stability, and service life. - Improving surface properties. - Enhancing application and processing properties. - Extending prime pigments. - Controlling viscosity and package stability - Lowering overall costs of the finished product. The principal minerals used as functional pigments are kaolin, ground calcium carbonate, talc, and asbestos. Other minerals include barytes, attapulgite, diatomite, mica, ground silica, wollastonite, and nepheline syenite. Several synthetic products, including precipitated calcium carbonate; precipitated, gel, and fumed silica; alumina trihydrate; and barium sulfate, compete with mineral products. They are more expensive, but often have more closely controlled particle size or other properties because they can be tailor-made according to the requirements. This paper covers only natural products selling for $10 or more a ton, approximately the lower limit for pigment grades. Data refer only to consumption in pigment applications. For example, such applications as filter aids for diatomite are not included. Key properties of the major mineral pigments are given in Table 2. It is important to note that these properties are primarily physical rather than chemical. In general, these products are sold to performance specifications for what they can do rather than on chemical composition specifications on what they contain.

Jan 1, 1969

By AIME AIME

THE difficult problem of visitors is being met by the Hudson Coal Co. at Scranton in an ingenious fashion. The Company had long made it a point to have dealers selling its coal visit the mines, whenever possible. "The excellent reaction obtained from these dealer visits brought up the question of whether it would not be possible to open one or more mines to the public, and give the consumer an opportunity of seeing for himself how anthracite is mined and prepared. Ac-

Jan 1, 1929

By Fred D. Wright, Stefan H. Boshkov

12.1-BASIC AND PARAMETRIC CRITERIA IN THE SELECTION, DESIGN AND DEVELOPMENT OF UNDERGROUND MINING SYSTEMS STEFAN H. BOSHKOV AND FRED D. WRIGHT The criteria governing the selection of an underground mining system relate to several factors the importance of which varies with geographic location, the state of development of the industrial technology, the economic climate in the Nation and, perhaps, in the world-all these as functions of time. Thus, the best choice of a mining method depends upon sets of definable and undefinable values for numerous factors that may be considered fixed at the precise point in time. Subsequent changes in economic and/or technological developments may necessitate modification or complete revision of the existing mining system. A classification of criteria for selecting a mining system must be based on the broadest definitions. Specific cases may present simple solutions or pose very intricate questions, the answers to which are frequently based on judgment rather than explicit logically reasoned and derived results. Specific criteria may be of negligible consequence in some instances and of overriding importance in other cases. It would be foolhardy to attempt to point out, in the limited space available, all possible variations and interplay of factors, as well as to define the setting in which this interplay can take place. The reader is, therefore, referred to the case histories described in the subsequent parts of this section where actual practice will point out the variability of the problems encountered in the selection of a mining method. A popular thesis suggests that the proper approach to selecting the method of mining should be rooted in the inverse solution, whereby the limitations of the various methods in use serve as criteria to eliminate most of these methods from consideration in the specific case. This narrows the ultimate selection to one or perhaps two most appropriate methods. At this stage, a critical comparison analysis will lead to the ultimate choice. Although such a negative approach un¬questionably is valid in discarding obviously inapplicable mining systems from consideration, it falls short in defining the best system, which in practice quite often turns out to be a variation of a textbook standard, or a combination of two or more such standards. Because the deployment of capital and manpower over a long-term commitment closely follows the selection of the mining system, the decision-maker can well afford to spend a great deal of time and effort in evolving the optimum solution for the peculiarities of his specific case. Within the basic engineering tenets of economy and safety to which the design of a mining system must adhere lie numerous factors of constraint which may be grouped, somewhat arbitrarily but for ease of discussion, into several categories. The criteria that enter into the choice of a mining method derive from the following groups of factors: 1. The shape, size and spatial position of the ore deposit.

Jan 1, 1973

By Georgy Cherkashov

Shallow-water formation of marine ferromanganese nodules as well as their deep-water analogues is found throughout the global ocean. The Baltic Sea is a key province for the shallow-water type of marine minerals. The following main distribution areas of Fe-Mn nodules have so far been discovered in the Baltic Sea: the Gulf of Bothnia, the Gulf of Riga, Central Baltic area (Gdansk- Klaipeda) and the Gulf of Finland. The last area (Gulf of Finland/Finnish Bay) is the best studied from all aspects including geological prospecting and environmental assessment.

Sep 14, 2011

By Owen Matthews

Introduction For the past year and a half, the mill of Cochenour Willans Gold Mines, Limited, McKenzie Island, Ontario has been roasting arsenopyrite-gold concentrates, prior to cyanidation, by means of a roaster employing techniques that are new and novel. The roaster is known as the Dorrco 'fluo-solids reactor', and the technique as 'fluidization'. The reactor has demonstrated its ability to roast a flotation concentrate containing arsenopyrite, pyrite, stibnite, small quantities of other sulphides, and some lime silicates and carbonates, yielding a calcine consisting mainly of porous iron oxide, plus the gold values. This calcine is readily amenable to cyanidation. Bulk shipments of concentrates to a distant custom smelter, as practised prior to this installation, has thus been eliminated, with appreciable savings in smelting charges, freight costs, and interest losses during shipment and smelting. This is the pioneer installation of fluo-solids roasting at a Canadian mill and up to the present performance results have not been published. It is the purpose of this paper to present the information now available for the benefit of other millmen who may be confronted with identical or similar problems to those encountered and solved at Cochenour Willans.

Jan 1, 1949

By Tell Ertl

THE Piceance Creek Basin in northwestern Colorado is believed to contain the richest large deposit of oil shale in North America. The major portion, about 1650 sq miles, is bounded by the White River on the north, the Grand Hogback, which runs from Meeker to Rifle, on the east, the Colorado River to the south, and the drainage basin of Salt and Douglas Creeks on the west. The Basin is a plateau 7000 to 9000 ft high, composed of 3000 ft of the Green River series of Eocene age and surrounded by a steep escarpment of 1000 to 3000 ft. From the escarpment the beds dip gently toward the center. Although oil shale is found in all members of the Green River series, the rich thick beds are found chiefly in the Parachute Creek member. This is normally capped by 100 to 200 ft of the Evacuation Creek, the youngest member of the Green River series. Actually the Piceance Creek Basin oil shale is not a shale, nor does it contain oil. It is magnesium marlstone holding solid organic matter capable of being broken down by heat into gases, some of which can be condensed into oil. The marlstone is resilient nonporous rock, difficult to sample by pick or hammer and moil. Many companies and individuals prospected the Colorado oil shale shortly after the first World War,1 see Fig. 1, but because of the discovery of large quantities of petroleum in the late 1920's in California, Oklahoma, and East Texas, interest in oil shale development waned and did not revive until World War II. In 1944 the writer, employed by the Bureau of Mines, prospected the high grade oil shale in numerous places along the southern outcrop of the Piceance Creek Basin. Several channel samples about 100 ft in length were cut, see Fig. 2. An eightman crew needed a week to cut a satisfactory channel 80 ft long in the cliff face. The Phillips Petroleum Co., the Union Oil Co. of California and others also prospected the oil shale outcrop. In 1945 the Bureau of Mines initiated a core drilling program for the purpose of obtaining accurate samples from the Piceance Creek Basin. The U. S. Geological Survey set up a program for the geological study of the Basin that is still going on.2 Until the end of 1951 a total of 31 holes was drilled for core with diamond drills, and, in addition, cuttings through the oil shale have been obtained from 4 gas wells drilled by standard rotary oil well rigs. The Bureau of Mines drilled 12 of the holes, the Union Oil Company of California 8, the Standard Oil Company of California 6, the Sun Oil Company 3,

Jan 1, 1952

By Edward J. Sterne

Several shale-hosted Pb-Zn-Ag deposits have been discovered in the northwestern Brooks Range, Alaska. Best known among these are the Red Dog, Drenchwater Creek, Lik, Ferric Creek, Hot Dog Creek, and Competition Creek deposits. They occur in a tectonically disturbed sequence of of Mississippian to Triassic shales, argillites, and cherts, and most are spatially associated with volcanic rocks. The sulfides are hosted in shales as disseminations, banded layers, massive lenses, and crosscutting veins. Detailed geologic descriptions of sulfide prospects in the Brooks Range were given by Tailleur (1970), Nokleberg and Winkler (1978), and Plahuta and Robinson (1979). Lange et al. (1980) discussed the formation of the deposits, the nature of the mineralizing solutions, and the temperature of formation on the basis of sulfur isotope studies. More recently, Harrover et al. (1982) detected a correlation between sulfide mineralization and high-temperature formation of charts associated with the sulfides by oxygen Isotope and chert crystallite size determinations.

Jan 1, 2013

By W. E. Roscoe

"Mineral exploration properties are those on which an economically viable mineral deposit has not yet been discovered. Such properties are bought, sold, optioned and joint ventured on the basis of their perceived potential for the existence and discovery of a viable mineral deposit. The intrinsic value of an exploration property is therefore based on the exploration potential. One measure of the exploration potential is the amount that can be justified to spend on exploration for a viable deposit.The appraised value method uses a cost approach to value exploration properties. It is based on the premise that an exploration property is worth the meaningful past exploration expenditures plus warranted future costs to test remaining exploration potential. Results of past exploration work are analyzed in order to retain only those past expenditures that are productive in terms of identifying remaining potential. Warranted future costs comprise a reasonable exploration budget to test that potential."

Jan 1, 2002

By F. C. Blake

The apparatus which I shall describe in this paper has been in ase for some time at the laboratory of the Pennsylvania Lead Company's works, and has been found to give good results, and to be simple and convenient. Steam Bath.—This steam bath is shown by Figs. 1, 2,3 and 4. It is made of sheet copper, about one-twelfth of an inch thick, the joints being brazed, and is used for heating the bottles in which the silver samples are dissolved,-previous to the fineness determina-

Jan 1, 1882

By G. W. Diehl, G. A. Griffiths

"Gentlemen, one week ago, I attended the University of Minnesota's Annual Symposium on Mining, in Duluth. A good part of this symposium was dedicated to mill linings of rubber.At this symposium, three mining companies published results from long time full scale tests with rubber linings in mills at four different mines. These were the Republic and Empire Mines of Cleveland Cliffs Iron Company, the Groveland Mine of Hanna Mining Company and the Eagle Mountain Mine of Kaiser Steel Corporation. These papers will be printed in due time and I will not endeavour to relate their full contents, let me only say that in three of the plants, the linings were found to be very economical compared wi.th steel, and that these three are converting over completely to rubber linings, while the fourth, Empire Mine, reported no economical results as far as the shell lining goes, whereas the grates showed promise of becoming economical. The authors of the Cleveland Cliff's paper, however, stated that design improvements in the rubber lining possibly could result in an economical lining also for Empire Mine.That rubber linings in mills, in most cases, show better wear life than steel linings, is known by most of the audience. But, one thing that has not before been disclosed by the endusers is the effect of rubber linings on the grinding economy. All three papers mentioned above reported no change in capacity or grind and two of them reported a decrease in power consumption per ton ground. Hanna Mining reported an average decrease over a three year period for one mill of over 10%. This, of course, puts the economy of a rubber lining in a completely new light. Finally, a point of interest at this meeting was that all three papers emphasized the design aspect, Thus the industry has acknowledged what I believe to be a very important fact - the design of a lining is often more important than the material it is made of."

Jan 1, 1970

By R. A. Cattell

The Bureau of Mines actively conducted a well-coordinated research pro- gram during the past fiscal year on problems dealing with the production of oil and gas, transportation of natural gas, chemistry and refining of petrole- um, thermodynamic properties of hydrocarbons, and the processing and utiliza- tion of incombustible helium gas. These particular reserach phases, compris- ing the presently scheduled activities, are integral parts of a broad program selected soon after the war as suitable for Bureau of Mines study, to meet immediate needs for specific information on petroleum and natural-gas problems of national scope. Important progress was made and many technical reports were finished during the year. Several reports were published on gas-condensate production problems, one giving the results of laboratory tests of relative merits of various steels and alloys for rosisting the corrosion that occurs in high-pressure gas- condensate wells. Research was continued, using the Bureau's windowed cell, to determine the characteristics of gas-condensate fluids, and an important paper on the phase relations of these fluids at low temperatures was published. An important part of the Bureau of Mines petroleum production research program for many yoars has been the engineering study of type oil fields. This year reports waro completed on the Lake Creek, Sheridan, and West Rod River fields, Tex.; the Atlanta field, Ark.; and the Bogge field, W.V. Othor fields under study and for which reports will be issued are the Carthage and Now Hope fields, Tex., and the Weber pool, Okla. Spocial studios to determine the characteristics of the oil-gas solutions as they exist within the native reservoir rocks have been in progress in the North Lindsay field, Okla.; the Elk Basin field, Wyo. and Mont.; and the Rangely field, Colo. The North Lindsay study brought to light several un- usual physical proporties of the oil as it is found in this deep-seated reservoir. For instance, its viscosity is less than that of water, and more than 2 barrels of the initial reservoir oil must be produced to yield 1 barrel of "stock-tank oil." In the Elk Basin and Rangoly fields the oil-gas solution varies in composition within the reservoir, depending upon structural location. Engineering studies were continued on woll spacing and on drilling fluids with special emphasis on obtaining uncontaminated cores, or coros for which the flushing action of the drilling fluid can be dotormined accurately. In connection with research on production of oil by secondary recovery methods, progress was made in studies of conditioning water for subsurface injoction, of input ratos and pressures for water-flooding oil sands, and of the selective plugging the more permeable mediurs to prevent or retard channel- ing of the injected fluid. The availability of fuels for all types of internal-combustion engines still is tho primary resoarch project in potroleum chomistry and refining. This rosearch program is subdivided into a sorios of problems under four main topics: (1) Raw-material studios; (2) relationships of fuel consumption, proporties, and performanco; (3) utilization of potroleum products; and (4) analytical mothods, which include chomical and physical property detorminations.

Dec 1, 1949

By William D. Riley

In order to evaluate the corrosion resistance of zirconium in mineral extraction processes, such as a clay-hydrochloric acid leaching process for extracting alumina, the Bureau of Mines conducted corrosion studies in HCl-AlC13-FeC13 environments. A series of weight loss and electrochemical tests were conducted at 25° and 65° C in aluminum chloride (AlC13) plus hydrochloric acid (HCl) solutions containing 0 to 1,000 ppm ferric ion. It was determined that zirconium, which normally exists in a passive state in chloride-containing solutions, undergoes pitting attack in solutions containing more than 100 ppm of ferric ion. It is also shown that an oxide film prepared in air at high temperature offers protection in acid solutions containing levels of ferric ion from 300 to 1,000 ppm.

Jan 1, 1981

By Joseph G. Wargo

An investigation of trends in exploration expenditures for a selected group of mining companies was undertaken for the interval 1968-1971. These trends were compared with financial factors that are associated with various groups of companies and the implications of these trends are indicated. The sample consists of 21 mining companies, of these, 19 are listed on the New York Stock Exchange and 2 are listed on the American Exchange. Twenty are American, one is Canadian. All are fundamentally "mining companies" in that they derive the bulk of their income from the ex- traction, sale, and at times, fabrication of metals from their own mines. This is in contrast to companies which have mineral exploration departments but derive the bulk of their revenues from sources other than mining, such as oil and gas sales. No companies which can be considered strictly as exploration companies are included in the sample. This definition held up in 1968, however, its strict application became more difficult through the years. In 1971, three or four of the companies were changing their character in that they were phasing out of the mining business and deriving a substantial part of their income from activities other than mining.

Jan 5, 1973

The issue of retrenchment is a topic of considerable relevance for the Papua New Guinea (PNG) mining, petroleum and gas industries. The unique environments in which Porgera Joint Venture (PJV) and other similar operations operate are likely to confront these industries with particular dilemmas that will require a range of investments to mitigate the problems associated with retrenchment and employment. This paper discusses retrenchment and employment in the PNG mining industry using the specific case study of PJV. The paper deals with the issue of employment and retrenchment of local workforces in the PNG context, which presents a serious challenge for the resources industry and the achievement of sustainable development objectives. The issue of future retrenchment of the workforce as a result of mine closure is an obvious challenge for both PJV and the Porgeran community at large, who have now come to rely upon both the employment opportunities presented through the mining. This paper examines these challenges and in doing so highlights some progress made by PJV. The paper also discusses downsizing, strategic practices and holistic approaches of retrenchment and employment. In doing so the paper highlights issues that have been overlooked in both academic and applied studies from global and local perspectives in the PNG mining sector. The latter sections articulate the relevance of the information provided by the case study in the wider context of retrenchment. The conclusion promotes a perspective that a great deal more investment will be required by all stakeholders to respond to the challenges of managing retrenchments and mine closure.

Jan 1, 2009

By L Kormos, V Lawson, G Hill, G Marrs

"In sulfide nickel deposits throughout the world, pentlandite and pyrrhotite are commonly found together along with varying amounts of chalcopyrite and platinum group minerals (PGMs). The mafic or ultramafic host silicates associated with the sulfide mineralisation commonly exhibit a complex assemblage of magnesium bearing silicates, many of which themselves contain significant nickel. Four types of ore are proposed, each presenting their own processing challenges. These are: economic grades of Ni, Cu and PGE (platinum group element) in a pyrrhotite-bearing sulfide deposit, with low pyrrhotite to pentlandite ratios  economic grades of Ni, Cu and PGE in a pyrrhotite-bearing sulfide deposit, with moderate to high pyrrhotite to pentlandite ratios uneconomic high pyrrhotite: low tenor deposits low-grade low sulfide, high MgO ± PGE deposits that can sometimes be economically mined and processed.The grades and recoveries of nickel concentrates produced from sulfide ores can be significantly impacted by the ore mineral texture, the nickel tenor of the sulfides, and the polytype of pyrrhotite which may be either hexagonal (non-magnetic) or monoclinic (magnetic). The mineralogy of the silicates is also of great importance, especially the magnesium silicates and those which tend to produce particles which are asbestiform or which affect slurry viscosity. Other magnesium silicates such as serpentine carry nickel in solid solution, limiting the recovery entitlement of nickel by flotation because serpentine is not amenable to sulfide flotation mechanisms. Differences in plant flow sheets and reagent assemblages are required to effectively separate these minerals.Experience from a variety of plant operations and from extensive flow sheet development programs are discussed. Examples are given of where significant improvements in nickel circuit performance can be made by adjusting plant physical processing conditions or process chemistry to compensate for measurable ore properties and characteristics.CITATION:Lawson, V, Hill, G, Kormos, L and Marrs, G, 2014. The separation of pentlandite from chalcopyrite, pyrrhotite and gangue in nickel projects throughout the world, in Proceedings 12th AusIMM Mill Operators’ Conference 2014, pp 153–162 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Sep 1, 2014

By M. Shapiro, L. A. le Grange, B. Henning

A paper was presented by Bateman Minerals and Metals at INFACONX (2004) describing a simplified Computational Fluid Dynamics (CFD) Model for predicting the temperature and velocity distributions in all the fluid zones of a single electrode DC Furnace simultaneously with the temperature distributions in the refractory lining of the vessel. The boundary conditions imposed on the model consisted of the arc current, external surface film coefficients and ambient temperatures. The temperature and velocity distributions in the free-board, slag and metal were solved simultaneously by coupling across the interfaces between the fluids and transportation phenomena developing in the plasma arc. A simplified model was used to describe the ex-change of energy by radiation between the arc and surfaces enclosing the freeboard region. The strengths of this model were reported as being the ability to: ?Solve the different zones and transportation phenomena simultaneously without the need to transfer partial numerical results between different numerical analysis applications. ?Solve velocity and temperature distributions without assumptions regarding internal film coefficients and additional internal temperature boundary conditions. One of the disadvantages of the model was that the energy absorbed by the process was not modelled, resulting in vessel performance predictions under heat loss conditions only. Whilst this allowed potential problem areas such as localized refractory heating to be identified, the model was only capable of predicting how these could be improved by varying the overall geometry and materials of construction. This paper presents improvements in the application software and user defined subroutines of the model as follows: ?Incorporation of surface to gas, gas to gas and gas to surface radiation models to improve the accuracy of radiative heat transfer mechanisms within the freeboard. ?Incorporation of a process energy absorption model based on a theoretical temperature dependant enthalpy curve which incorporates melting, smelting and superheating in selected areas of the bath. This enables the effect of feed distribution and power to feed ratio changes to be estimated. The effects of a commercial arc at full power on the freeboard and slag can now be simulated with increased accuracy.

Jan 1, 2007

By W. N. Marchant

The Bureau of Mines performed chemical research to elaborate details of sulfur chemistry pertaining to the citrate flue gas desulfurization process in which sulfur dioxide (SO2), absorbed (as bisulfite ion) in a buffered sodium citrate solution, is reduced by hydrogen sulfide (H2S) according to the overall reaction 2H2S + HSO3 + H+ ? 3S + 3H20. The rate-limiting step in the process was shown to be the reduction by H2S of thiosulfate (S2031-) that is formed as an intermediate. Pseudo first-order kinetic measurements were made at room temperature to retard the reaction sufficiently that adequate analysis was possible. These measurements showed the rates of the following net processes to be -d [S02]/dt (pH 4.5) = (0.409±0.050)min-1 [S02]; d [S2032-]/dt (pH 4.5) = (0.199±0.017)min-1 [S02]; -d [S2032-]/dt (pH 4.0) = (0.0437±0.0265)min-1 [S2032-]~1; -dH2S/dt (pH 3.9) = (21.6±3.0) mmoles/min-atm [H2S]g1.4, where [H2S]g is the partial pressure of H2S in the gas phase, in atmospheres, and the rate describes the consumption of H2S, in millimoles per minute; d[S]/dt (pH 4.0) = (38.0±3.4)min-1 [H2S]1, where [H2S] is the concentration of H2S in solution. Hydrogen ion consumption during the slow phase of regeneration was shown to occur at (2.1±0.5) times he rate of thiosulfate consumption, which is interpreted as evidence for the following as the rate-limiting reaction: 2H2S + S2032- + 2H+ ? 4S + 3H20 A scheme consisting of five sequential general reactions is proposed to account for sulfur formation.

Jan 1, 1981

By H. O. Seigel, J. C. Gingerich, E. O. Köstlin

"To satisfy their continuing need to replenish or expand their ore reserves, mining companies are faced with the dilemma of arriving at a proper balance between the dual avenues of discovery through in-house exploration and of acquisition of properties that are relatively proven or are even in production. The returns from exploration activities may be spectacular, but are unpredictable. The allure of an acquisition lies in its promise of quick and risk-reduced addition to reserves. However, it is historically clear that quantum increments in shareholders’ values have arisen primarily through major exploration discoveries, rather than through major late-stage acquisitions. Late-stage acquisitions can prove highly profitable, sometimes based upon the planned use of superior mining or metallurgical technology, but more often occur as the result of unexpected windfalls. At the other extreme, they can become expensive failures through inadequate due diligence, or unforeseeable factors.Citing numerous case histories and industry statistics, it is concluded that a judicious combination of both exploration activity and the acquisition of prospects is the most advantageous strategy for adding new ore reserves. A skilled exploration staff is essential for success, be it through exploration discoveries or through opportunistic acquisitions, preferably at their early stages. In the future, it is anticipated that there will be fewer opportunities for acquisition because of reduced funding for junior exploration companies, leading to increased competition and higher costs for fewer properties, both in the advanced exploration and mining stages."

Jan 1, 2002