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By John W. Buch

IN my review a year ago I pointed out that a small coal-mining companies as well as large had decided that the so called ?central shop? was a benefit. These central shops replaced in a large measure the commercial shops operated by those who have no direct connection with production of cod. Central shops in this time of salvage and major repairs have proved their worth. In addition, many of the larger companies had in their central shops equipment available for the production of many thousands of parts for our vast war machine and, as subcontractors, are doing this type of work. This is a real contribution to the war endeavor. Lack of new supplies has resulted in exhaustion of those stocks formerly stored or hidden in underground shanties. This means that the small stock of repair parts likely LO be available to any mine

Jan 1, 1943

By Ronald M. Hays

The Duluth Gabbro Complex in Northeastern Minnesota possibly contains a significant domestic copper resource and the nation's largest nickel resource. Exploration has discovered large low-grade copper-nickel (Cu-Ni) deposits between Hoyt Lakes and the Boundary Waters Canoe Area (BWCA). The mining and processing of Cu-Ni will have environmental, economic, and social impacts. The purpose of this study is to relate major environmental, economic, and social considerations to various aspects of Cu-Ni extraction. An open pit and two underground (block caving and open stoping with backfilling) models were developed to generate information on the impact of Cu-Ni extraction. Important considerations having environmental, economic, and social impacts (luring various aspects of Cu-Ni extraction are identified and defined. These aspects are exploration, development, mining, beneficiating, smelting, transportation, and termination of operations. Considerations are grouped into the general categories of site, industrial, energy, climatic, resource, water, air emission, waste disposal, employee, tax and royalty, transportation, and community considerations. Cu-Ni extraction in Northeastern Minnesota presents major environmental, economic, and social risks. Decisions are required on trade-offs between adverse and beneficial impacts. The approach used in this study assists in assessing environmental, economic, and social impacts. It will aid in the examination of potential and projected short-term and long-term advantages and disadvantages and will aid in the development of Minnesota's Cu-Ni resource for the maximum benefit to society.

Jan 1, 1974

By M. Li, T. H. Dubaniewicz, H. N. Dougherty

"INTRODUCTION Underground mines have the risk of accumulation of gases if not ventilated properly or during and after emergency situations when ventilation controls become damaged or stop working. Common gases that are monitored in underground coal are carbon monoxide (CO), oxygen (O2), and methane (CH4). Methane is a gas found in coal and released through mining; its explosive range is between 5% and 15%. Methane is commonly monitored on all mining equipment and with handheld gas sensors carried by most underground coal miners. Fiber optics (FO) is a popular technology applied in underground mining, particularly for its electric isolation. Many miners are familiar with FO cables hung throughout the mine, which are primarily used in the communication of voice and data (Taylor et al. 2010). Advancements in laser and fiber optics have made this technology well suited for gas sensing the harsh environment of mining applications. The work of the U.S. Bureau of Mines on the use of fiber optic monitoring of gases in mines started in 1992. Dubaniewicz et al. (1992, 1993, 1995, 1999, 2003) developed prototype gas sensors, including methane gas sensors, for research purposes. Previous research (Dubaniewicz & Chilton 1992) identified potential fiber optic gas detection cross-sensitivities associated with the index of refraction of various gases. Index of refraction effects was noted for carbon dioxide (CO2), which is produced in significant quantities by mine fires or explosions. NIOSH released a broad agency announcement (BAA) for the development and demonstration of mine safety and health technology (CDC NIOSH 2017). The objective of this announcement was to validate a sensor, specifically fiber optic, for the mine environment and test it in an actual working mine. The RSL FO sensor “OptoSniff” provided from this work is capable of hundreds of sensing points over distances of up to 20 km, has a measurement range of 0.05% to 100%, senses in an oxygen- deficient environment, and has no gas cross-sensitivity (RSL, 2014). The RSL system is totally electrically passive outside the central control unit (CCU), which can be housed in an MSHA-approved explosion-proof (XP) enclosure or in a control room outside of the permissive area. The sensor was tested in dusty and signal loss situations, showing it is tolerant of dust, has functioned at signal losses up to 90%, and was successfully tested in a mine environment for a five-month period (Walsh et al. 2014). This paper describes how the RSL FO sensor is used for testing using smoke and its contaminants for applicability in emergency situations. The testing investigates individual contaminants such as CO2, temperature, and smoke. Each test was performed separately and methane concentration, laser power, and response time data were collected."

Jan 1, 2019

By Guiqing Zhang, Liansheng Xiao, Zuoying Cao, Li Zeng

A new process of direct solvent extraction of nickel from sulfuric acid leach solutions of low grade and complicated nickel resources using a novel extractant HBL110 was proposed. The basic performance of new organic system was investigated and the continuous pilot plant and the industrial test were conducted. The results indicated that the extractant of HBL110 can be used to directly extract nickel selectively over iron, aluminum, manganese, magnesium, calcium and chromium from sulfuric acid leach solutions. The loaded organic solution can be easily stripped using dilute H2SO4 solutions. Both kinetics of extraction and stripping of nickel were fast. The continuous pilot plant test with the sulfuric acid leach solution of laterite containing 6.22g/L Ni2+, 14.1g/L Fe3+, 0.73g/L Fe2+, 33.9g/L Mg2+, 1.58g/L Al3+, 0.495g/L Ca2+, 0.97g/L Mn2+ and 0.5g/L Cr3+ as feed in mixer-settlers showed that the process had run stably with 98% recovery of nickel. The concentration of nickel in strip liquors reached as high as 50 g/L while the removals of Fe3+, Fe2+, Mg2+, Al3+, Ca2+, Mn2+ and Cr3+ were 98.5%, 91.5%, 99.95%, 99.8%, 99.1%, 98.6% and 99.5%, respectively. The industrial test with the sulfuric acid leach solution of electroplating sludge containing 11.5g/L Ni2+, 2.68g/L Fe3+, 7.54g/L Cr3+, 0.61g/L Mg2+, 2.09g/L Al3+, 0.68g/L Ca2+, 0.022g/L Mn2+ and 0.154g/L SiO2 as feed in mixer-settlers also showed that the process had operated successfully with 99.5% recovery of nickel. The concentration of nickel in strip liquors reached 42.7 g/L while the removals of Fe3+, Cr3+, Mg2+, Al3+, Ca2+, Mn2+ and SiO2 were 99.2%, 99.77%, 99.73%, 99.56%, 99.57%, 98.51% and 98.75%, respectively. The new process exhibited big advantages of short flow sheet, high recovery of nickel, high removal of impurities, low chemical reagent consumption and low cost. Application of this process in industry is expected to make important impact on the extraction of nickel from sulfuric acid leach solutions and to deliver good environmental and economical benefits.

Jan 1, 2016

By Thomas C. Denton

The fluorite, deposit discussed herein occurs on a property known as the Snowball and comprises five contiguous mining claims in Maricopa County, Ariz. Attention of the Bureau was first directed to this property early in 1944 through .a request by D. B. Powell, original locator; to investigate his property as a possible source of fluorite and one that might 'Warrant exploration by the Bureau. The property was examined by two Bureau engineers, Thomas C. Denton and Geo. W. Huseman. It was decided to investigate the occurrence further by trenching, sampling, and diamond drilling. Work began on May 15, 194. Preparatory work, trenching and surface sampling, was supervised by Geo. W. Huseman. Drilling was in charge of R. M. Grantham. The project was completed August 8, 1944.

Jan 1, 1949

By Olusegun J. Ilegbusi

"A two-fluid model is used to calculate flow and heat transfer characteristics of a plasma jet. This model accounts for both gradient-diffusion mixing and unmixing that may result from pressure-gradient-body-force imbalance in the system. The unmixedness is considered to be essentially a Rayleigh-Taylor kind instability. Separate transport equations are solved for the plasma and ambient gas velocities, temperatures and volume fractions. The two fluids allowed to exchange mass, momentum and energy through empirical interaction parameters. The empirical coefficients are first established by comparison of predictions with available experimental data for shear flows. The model is then applied to an Argon plasma jet ejecting into stagnant air. The predicted results show the significant build-up of unmixed air within the plasma gas, even relatively far downstream of the plasma torch. By adjusting the inlet condition, the model adequately reproduces the available experimental data on the temperature profile.IntroductionPlasma jets have important applications in materials processing, some of which include spray deposition, melting and refining, heat treatment and materials synthesis. In a typical reactor, the hot plasma stream entrains a surrounding gas and the resulting heat and mass transfer and the condition of operation of the torch, determines to a large extent, the performance of the unit. The entrainment may prevent uniform mixing and produce regions of unmixed hot/cold gases and non-uniform deposits as a result of insufficient melting of deposit in cold regions. This phenomenon may also affect chemical reaction rate in plasma systems for NOx reduction in exhaust gases.The study of plasma phenomena is often conveniently divided into three parts namely, the plasma torch, the plasma jet and analysis of the particles carried in the jet. The present work concerns processes occuring in the near-field of the plasma jet i.e. just downstream of the torch."

Jan 1, 1994

By J Hartnett, B Tarrant, A Rayner, D O’Toole, P Davies

Since 2009, the Northern Territory and Australian governments have been working under a national partnership arrangement to inform a rehabilitation plan for the former Rum Jungle uranium mine. Part of the rehabilitation strategy is to backfill a flooded former pit (Pit), which extends down to 100m below the current pit lake surface and was historically partially backfilled with uranium tailings. It is proposed to utilise the remaining pit volume below water level to sub-aqueously store Potentially Acid Forming (PAF-I) waste rock which currently occupies large stockpiles across the site. The rehabilitation design and planning process undertaken to develop a strategy commensurate to project objectives and construction constraints involved the establishment of key constraints derived from the analysis of historic data sources and preliminary design efforts. Tabled strategies were balanced against dependent project tasks and project objectives, especially surrounding minimising disturbance of highly contaminated materials within the Pit. Ideas were developed in conjunction with industry input and review of case histories to develop a remediation solution that is constructible within the project timeframe and constraints.

Jul 1, 2021

By Mohamed Sassi, I. Kolo, R. L. Sousa, R. K. Abu Al-Rub, Manhal Sirat

"Fractures induced by folds are pivotal in hydrocarbon exploration, ground water transport and harnessing of geothermal energy. This is because of the need to predict and understand fracture propagation in reservoirs which have folded rock formations. Despite its prominence, there is a lack of reliable numerical models for simulating fractures resulting from rock folding. This is partially due to the difficulty involved in fracture modelling. As a contribution to fold-fracture modelling, this work applies a coupled plasticity-damage model to rock fracturing and anticlinal folds. Parametric studies on a single folded layer give insight into the fold formation and behaviour. The anisotropic continuum damage model which considers both tension and compression is formulated using the power damage evolution law. For ease in formulation, strain equivalence hypothesis is adopted whereby the strain is the same for both damaged and undamaged configurations. Lubliner plasticity yield criterion is adopted for plastic deformation. The model is coded in Abaqus user subroutine UMAT and is applicable to quasi-brittle materials.INTRODUCTIONThe understanding of fractures in the earth’s crust helps in the prediction, evaluation and characterization of fractured reservoirs, whether they are petroleum, geothermal or underground water reservoirs. This is partly because reservoir permeability and stability are dependent on fracture properties (Nelson, 2001). To achieve this, various approaches have been developed to analyze reservoir rock fractures. These could be grouped into (a) discrete approaches – where the rock mass is represented by a finite number of well-defined components and (b) continuum approaches – where the mathematical assumption of an infinitesimal element is made (Jing, 2003). Ivanova (Ivanova, 1998) comprehensively studied fracture systems in nature and highlighted folds as one of the major geologic settings that produce fractures. Naturally occurring folds in reservoirs sometimes compound fracture analysis. It might not be clear whether the fractures formed before, during or after rock folding. Fractures formed during the folding process are expected to show stress orientations related to folding and are thus of primary concern in rock folding simulation. It could be argued that there are no numerical models that as"

Jan 1, 2015

By John P. Anderle

A tectonically disturbed sequence of Mississippian age evaporites expressing a 5 milligal negative gravity anomaly near Sussex in southeastern New Brunswick, Canada, was investigated by a program of drilling, geologic and geophysical work over the past 27 months. Seventeen of twenty-one drill holes have penetrated 10 to 140 feet of potash mineralization in a salt sequence underlying 2 000 to 3 000 feet of arenaceous, conformable red beds, also of Mississippian age. Bromine and borate studies, lithological characteristics and geophysics, have facilitated improved understanding of the salt structure. The salt sequence has been affected by f1owage which has resulted in both major and minor folding. In the more disturbed areas, the potash interval was extensively subterraneally eroded at the upper anhydrite-salt contact.

Jan 1, 1978

By Gennaro G. Marino

The Bureau of Mines and the University of Illinois investigated surface characteristics and damage to structures from mine subsidence over a room-and-pillar coal mine in Hegeler, IL. Data on three adjacent subsidence sags and associated structural damage were collected, summarized and evaluated. The subsidence sags developed over a 10-year period and took place above a modified room-and-pillar operation mining the Herrin (No. 6) coal at a depth of 130 to 135 ft. Surface vertical displacements of 3.0 to 3.5 ft resulted from extracting 6.1 to 6.4 ft of coal. Ground movements associated with sag formation severely damaged three houses and a radio station building, broke numerous utility lines, and structurally distorted three radio transmission towers. The radio station was remodeled and the towers repaired, but the three houses were subsequently demolished. Surface waters collecting in the subsidence depressions caused failure of radial ground transmission systems. The following subsidence profile characteristics were determined at the radio station and one of the houses, respectively: profile slopes, 0.02 and 0.07; maximum curvatures, 2.3 x 10-4 ft-1 and 3.0 x 10-4 ft-1; and angular distortions, 6.6 x 10-3 and 62.0 x 10-3. Although the house was more severely damaged than the radio station, both structures are classified as severely to very severely damaged.

Jan 1, 1986

By Peter Faust, Peter Hubbard, Kenichi Soga

The European Federation of Foundation Contractors (EFFC) and The Deep Foundations Institute (DFI) have set up a task group to compile a Guide for Working Platforms. The first edition of this Guide has been published in January 2020. The aim of the Guide is to provide reliable methods for design, testing and verification of working platforms for construction equipment, especially in the deep foundation industry where track loads can be excessive due to the nature of its operations. The Guide has identified areas where knowledge is limited. Actual track pressure and its distribution along the length of the tracks is still not well researched. Current recommendation provided in EN 16228-1 are believed to be overly simplified and may lead to conservative requirements for working platform thickness. This paper presents results of a series of field tests where the actual track pressure of a large drilling rig during operation was measured in real time together with the deformation of the working platform. Embedded, distributed fiber optic sensing (DFOS) at different depths throughout the platform allowed for a three-dimensional evaluation of the platform deformation throughout the entire operation. Results will help to develop more reliable recommendations for future safety requirements of working platforms for deep foundation equipment.

May 1, 2022

By S. A. L. Read

"The intact rock constant, mi, is one of the three basic input parameters required for the widelyused Hoek-Brown failure criterion. Values for the constant should ideally be determined by statistical analysis of laboratory test data. In this paper the influence of the inclusion or exclusion of tensile test data on derived values is discussed. We firstly investigate the relationship between direct tensile strength (DTS) test values and Brazilian tensile strength (BTS) test values based on a literature search, finding that the correlation between the two test types is DTS = 0.9*BTS, independent of the lithology being tested. Secondly, using the shear strength database of Douglas (2002), we examine the influence of confining pressure range and the inclusion or exclusion of DTS and BTS test values on calculated values of mi.Chief amongst the influences was the exclusion of tensile data in the calculation procedure, particularly when the Hoek triaxial confining stress range requirement (?3?max = 0.5?c) was not satisfied. Based on a reasonable 1:1 relationship between R (the ratio of unconfined compressive to tensile strength), use of actual tensile data in the calculations for the Hoek brown failure criterion is considered to be a simpler and more robust approach to the use of a tensile cutoff based on empirical criteria such as that of Fairhurst (1964). We advocate the fitting a failure curve using compressive and tensile test data as the most reliable means of calculating mi, while at the same time satisfying requirements as originally advocated by Hoek relating to the appropriate triaxial confining stress range (?3?max = 0.5?c) and sufficient (>5) evenlyspread data points. In the absence of triaxial data the use of R provides a practical means of obtaining estimates of mi that are more robust than guideline values."

Jan 1, 2015

By R. Hogg, T. F. Dumm

"Abstract - With increasing interest in the physical cleaning of fine coal, there is a need for extension of the sink float analysis procedure to finer sizes. Problems arise, however, in ensuring complete dispersion of the particles in the heavy liquids. A procedure has been developed in which surfactants are used as dispersing agents, and solids concentration is minimized (using a simple formula to estimate the minimum weight needed for statistical reliability). Using centrifuges to increase separation rates and subsieve particle size analysis of the specific gravity fractions, a complete size specific gravity distribution can be obtained. Analyses have been performed on coal samples as fine as -10 µm.IntroductionTraditional gravity separation techniques such as jigging, heavy media and water-only cyclones, shaking tables, etc., have been used to remove impurities from coal ranging in size from about 15.cm (6 ln.) to about 150 µm (100 mesh). The coal washabilty or float-and sink technique ls a well-established procedure for determining the optimum extent to which a coal can be cleaned by such physical separation methods. Because of the desire to recover even finer coal fractions by gravity separation techniques, there is a need to extend the coal washabillty analysis into the ultrafine range. The purpose of this paper ls to describe some of the significant factors that influence fine particle specific gravity separation. Washability analyses have been performed on three ultrafine ( <10 µm) coal samples representing three general mining districts in Pennsylvania. Results of these analyses indicate that the washabillty technique can be successfully applied to ultrafine particles when proper care ls taken."

Jan 1, 1988

By Arthur Zentner

THE essentials of the electrolytic zinc process, as now used in commercial plants, date back to work done by Letrange in 1881. He used sulfuric acid to leach roasted sulfide and ,oxide ores, purified his solution very much as we do now, and electrolyzed the purified zinc sulfate solution. Ten years later Hoepfner developed a process using chloride solutions, and built three plants. One in England operated until 1924 in one of the works now merged in the Imperial Chemical , Industries, Ltd. Ashcroft built a plant in 1898 in the Broken Hill district of Australia. He used both chloride and sulfate solutions.. While his work failed, the aid his published results have been to later workers has made him an outstanding contributor to the de- velopment of the electrolytic zinc process. A good deal of work was done in the following years, aiming to electrolyze zinc chloride solutions and fused zinc chloride. Quite a bit of work on sulfate solutions was also done in the last years before the war. With the outbreak of the war, metal demand and rise in metal prices provided the stimulus which resulted in the remarkably rapid commercial development of electrolytic zinc. In this last period of development, all the work brought to commercial fruition has been with sulfate solutions. The high-density process, or the Tainton process, is used, as you know, in the Sullivan electrolytic zinc plant at Kellogg, Idaho, and will be used in the Evans- Wallower plant now being built at East St. Louis. The low-density process is used by the other plants now operating in the United States and other countries. There are now in operation and under construction four electrolytic zinc plants in the United States, two in Canada, two in Italy and one each in Australia, Rhodesia, Poland, Norway and Germany.

Jan 1, 1929

Teleoperation is one method by which an operator can remotely control and monitor a vehicle. The operator monitors the status and progress of the remote vehicle by watching the video transmitted from one or more cameras which are mounted on the vehicle. In the case of an LHD, it will be fitted with three cameras. For a twin-boom Jumbo, four cameras are mounted on the drill, three of which will have remote pan, tilt, 15x zoom, focus and lens cleaning controls. The advantage of teleoperation is that an operator can stand in the drive and send the remote vehicle around a corner, completely out of sight and still clearly see what is happening. This means that an LHD returns with a full bucket and a Jumbo can be operated from a safe distance. Standing in the drive teleoperating vehicles, exposes the operator to passing traffic including the remote vehicle. There are two solutions to this problem. One is to equip the operator with a Nautilus æBuddyÆ jacket which will help to protect them from all vehicles. The other is to move the operator into a safe room or area, away from the fumes, the noise and the traffic. In this comfortable, less stressful environment, the operator will be more productive and less likely to accidentally damage the vehicle. The operatorÆs æsafeÆ room does not have to be a formal control room, it can be any area which has AC or DC power available and is large enough to contain a chair and a 1.5 m x 0.75 m table. The æsafeÆ room can be on the surface or underground, it does not matter to the operation of the Nautilus Equipment. If the LHDÆs, trucks, locomotives, etc are automatically guided from origin to destination, the operator is free to operate several vehicles at a time, performing only those tasks which are too difficult for a computer to do by itself.

Jan 1, 1998

By Jerry Williams

GEORGE WEINMAN: At this time, our co-chair, Jamie Davis from Phelps Dodge, will come to the podium. JAMIE DAVIS: Our next speaker is Jerry Williams from Phelps Dodge, Morenci. Jerry is the maintenance planning supervisor and is in charge of preventative maintenance and maintenance scheduling. Jerry&apos;s group uses predictive tools to monitor and predict the equipment failure throughout the mine, from pumps to shovels to motors, you name it. The title of Jerry&apos;s talk is "If You&apos;re Not Using Predictive Tools, You&apos;re Behind the Curve." I’ll turn it over to Jerry.

Jan 1, 1998

By J. D. Marchant

The Bureau of Mines studied solid-state electromigration to determine the value of the technique as a method of purifying cerium metal. Cerium metal in bars 6 inches long and 1/2 inch in diameter was refined at 600° C by solid-state electrolysis to remove iron, copper, and manganese. Iron and manganese were electrotransported to the anode and copper was electrotransported to the cathode. The concentration of iron at the anode of a cerium bar was 800 times greater than the concentration at the cathode. The concentration of manganese at the anode was twice the value at the cathode. The concentration of copper was 170 times greater at the cathode than at the anode. A radiotracer technique was used to follow the iron migration in the cerium metal. Molybdenum, silicon, and aluminum impurities were not electrotransported.

Jan 1, 1967

By F. Rosenblum, K. E. Water, J. A. Finch, S. Moon, Y. H. Tan

Previous work has shown that sulphide self-heating occurs in three distinct stages referred to as Stage A, Stage B and Stage C. In this paper the focus is on the transition from Stage A to Stage B, which occurs at ca. 100OC. Background literature hints that the transition corresponds to the transformation of the rhombic form of elemental sulphur to the more reactive monoclinic form that occurs at 96OC. A test apparatus is modified for adiabatic heating to track the transition. The results support this transformation of sulphur as being key to the transition, and the transition temperature is thus modified to 96OC. Variations in a sample’s response under adiabatic conditions are observed and possible reasons are discussed. Testing in adiabatic mode provides new insights into the sulphide self-heating process that complement the test designed to identify propensity to self-heat. Keywords: Self-heating; Stage A/Stage B; transition; rhombic/monoclinic elemental sulphur; adiabatic heating

Jan 1, 2020

By Y. J. Son, S. S. Nageshwaraniyer, K. M. Kim

"This paper reports on the development of a simulation-based framework for obtaining optimal blast design parameters for a hard-rock mine. To do this, a conventional medium-sized hard-rock mine was taken as a case study. The mine has two pits containing hard and soft rock types. The proposed framework contains a combination of regression analysis using Excel software by Microsoft and discrete-event simulation using Arena software by Rockwell Automation, applied to construct a model of the material-handling network of the mine. Specifically, blasting parameters are estimated by Excel-based regression analysis, processes including blasting and haulage from pits to crushers are modeled by a Forward Blasting simulation submodel, and material-handling operations including crushing, storage in stockpile, and haulage via conveyors and into SAG and ball mills are modeled by a Crusher to Ball Mill simulation submodel. A Reverse Blasting submodel is then used to obtain the optimum blast design corresponding to a target P80 particle size. Using the proposed framework, an economic analysis was performed to demonstrate the cost savings that could be realized for each rock type as a function of specific explosive energy. IntroductionIn a modern hard-rock mine, various processes such as drilling, blasting, crushing, grinding and mineral liberation are optimized to increase productivity, a practice known as mine-to-mill (MTM) optimization. Blasting is important in MTM optimization as it is the first comminution process and has an impact on all downstream processes (Julius Kruttschnitt Mineral Research Centre, 1996; Nielsen and Lownds, 1997; Nielsen and Malvik, 1999; Chung and Katsabanis, 2000; Kim and Kemeny, 2011a; Kim and Kemeny, 2011b).Two main research topics have emerged in the area of blasting design: (1) identifying the optimal target blast fragmentation at each shot and (2) controlling the blast fragmentation for that target. As part of an MTM optimization study, Kim and Kemeny (2011a; 2011b) developed a site-specific blast fragmentation prediction model that can be used to identify the target blast fragmentation and can be incorporated into MTM optimization. They also reported methodology for assigning model parameters easily and with minimal human bias."

Jan 1, 2015

By A. E. Jack Swanson, Brian P. Micke

INTRODUCTION Nevada Goldfields began underground mining development at the Kingston Project in September, 1986, followed by mill start-up in March, 1987. The first gold pour in April followed three years of preparatory work in establishing a North American operational base for the production of precious metals by Golconda Minerals N.L., an Australian mining firm. GENERAL CORPORATE BACKGROUND The Golconda Group of companies was established in early 1983 in Australia. It began operations by successfully retreating tailings at several old gold mining sites throughout Australia. With the limited reserves available for tailings retreatment, Golconda began to look toward the future by conducting a gold exploration program in Australia. However, the continued high price of gold in Australia had limited the possibilities of acquiring good properties at a reasonable cost and consideration was given to looking outside Australia in addition to Golconda&apos;s domestic exploration activities. North America was favored because of the proven potential for substantial gold deposits, the established infrastructure which would allow for rapid and cost-effective development of new projects and the advantages of similar political and economic climates. In mid-1984, Golconda established an office in California and began an extensive study of over 100 prospects throughout the United States. Two prospects were identified as a result of this study whch showed merit; one was located at Empire, Colorado and the other at Aurora, Nevada. Negotiations were then successfully undertaken to acquire these two properties. Golconda&apos;s U.S. offices were moved to Reno, Nevada in early 1985 to facilitate management of its projects. To operate and manage these projects, a small Canadian company listed on the Vancouver Stock Exchange, Cannon Minerals, was acquired by Golconda and renamed Nevada Goldfields Corporation. The current structure of the company is shown below in Figure 1. A private placement of 2,575,000 shares of common stock at US54.00 per share was arranged by Jacksons Limited of Australia in association with W.I. Carr (U.K.) Limited of London. This placement resulted in US510.3 million being available in May, 1986 for the acquisition and initial development of the Aurora and Empire projects. While the financing was underway, project planning commenced on both the Aurora and Empire projects. The Aurora project was selected as the one to be initially developed because of its relatively advanced stage of development. The

Jan 1, 1987