Fast track construction at Asamera’s Cannon gold mine - a case study

Introduction Asamera Minerals (US) Inc. and its joint venture partner, Breakwater Resources Ltd., discovered ore grade gold mineralization on their 20 km2 (5000 acre) Wenatchee, WA land position in February 1983. Due to the high grade nature of the discovery ore and the known reserves of ore in the "B Reef' and "B West" zones previously outlined by other companies, a decision was made to construct a mine/mill operation near the known ore occurrences. Further drilling in the discovery area quickly expanded known gold occurrences to more than 3.6 Mt (4 million st) with tentative in-place ore grade of 7 g/t (0.25 oz per st) and minor silver values. Based on existing knowledge of the ore body and the rapidly increasing ore reserve, a decision to build a 1.8-kt/d (2000-stpd) mine and mill complex was made in the second quarter of 1983. A schedule was devised to begin immediate mine development, shaft sinking, environmental and land use permitting, and mill and tailings dam construction (Fig. 1). Meeting the scheduled startup date, April 1, 1985, required a fast track schedule in all areas. To this end, Asamera purchased the Oracle Ridge Partners concentrator. This was an assemblage of new equipment designed for use as a copper concentrator in southern Arizona. The purchase contained all of the major mineral dressing equipment - crushers, screens, rod and ball mills, etc. and an engineering package. It did not include most of the other required items, such as buildings, conveyors, pipelines, tanks, and pumps. At the same time, core samples were sent to two independent process development laboratories for initial flowsheet development. Due to the refractory nature of the carbonaceous ore, cyanide leaching was not feasible. Flotation was selected as the concentration process. Further testing showed that autoclaving of the flotation concentrate followed by cyanidation would result in overall recovery of about 85% gold. A mine manager was hired to begin assembling an operations staff, hire an environmental consulting firm, and begin mine development. Environmental and land use concerns were major obstacles due to the mine's close proximity to a city of 20,000 people. These concerns had to be rapidly defined so as to mitigate any adverse impacts from and mining processing operations. Baseline data dealing with weather, air and water quality, and sound were measured before start of mine construction. Concentrator and flowsheet development remained static until October 1983 while definition drilling and mine development proceeded. In late October, a process engineer was hired to coordinate development of a process flowsheet, purchase the remainder of the concentrator equipment, prepare a concentrator construction contract, finalize concentrator detail engineering, and combine environmental and process requirements with a tailings dam design. Process development There were only 17 months remaining to mill start up from the hiring date of the process engineer. Therefore, the process flowsheet had to be finalized rapidly. To accomplish this, samples of drill core from the highest grade (and therefore potentially the most commercial) ore zones were sent to an outside metallurgical laboratory to confirm beneficiation tests on the flotation process. Test results again showed that flotation would provide about an 86% gold recovery. Therefore, all further testing was concentrated on flotation and autoclave/cyanidation of flotation concentrates. Focusing on a well known process such as flotation was important in accomplishing the rapid design and construction of the concentrator. If, during these next phases, we were continually changing design concepts, layout, and process flow, the mill startup would have been delayed many months. Once a process flowsheet is selected the process engineer must obtain the process criteria needed to design the beneficiation system. For example, it was known in early December that the Oracle Ridge rod and ball mills were too small to grind 1.8 kt/d (2000 stpd) of Wenatchee ore. A decision had to be made to purchase a large, used ball mill and convert the Oracle Ridge ball mill to a rod mill. The process engineer must be cognizant of the process criteria needed to size and select equipment. If not, the process engineer must use the professional services of the equipment manufacturing companies to review the requirements that the equipment is asked to perform. For the Wenatchee system, this resulted in the adaptation of a ball mill to a rod mill with a weight limit of grinding rods to protect the mill bearings and drive trains. When a decision is required, the process engineer has to present the facts and options in a manner that allows a rapid decision. This information must include costs, equipment availability, and effect on the construction schedule. At the Cannon mine, there were process development details that resulted in decisions similar to the ball mill purchase. These included an increased flotation residence time from eight to 25 minutes, an increased thickener area requirement, a high pressure tailings pumping system, and area constraints in plant layout. All of these decisions had to be timely and required assistance from manufacturers' service engineers, and knowledge of the alternate costs and effects on construction completion. Equipment procurement It was decided in early 1983 to build the ore milling facility with Oracle Ridge equipment, augmenting it with used equipment