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By Mikael Ramström

In 2002 Atlas Copco Rock Drills AB released the new RCS technology for all of its drill rig types. RCS opened the way for a new generation of computerized drill rigs based on modern, standard PC-computer technology. Drilling accuracy, information logging and reduction in manpower in some types and serviceability, have all taken a quantum leap forward when compared with previous generations of drill rigs. The RCS (Rig Control System) is modularised and distributed is accomplished by means of CAN-bus technology. This technology, which is well proven in automobile applications, forms the communication backbone of the rig. The modularity facilitates almost unlimited possibilities for the expansion and adaptation of drill rig functions.

May 1, 2003

?General Facts:Barrick?sFirst Mine in Peru Production started in November 1998 ?The Facilities:Open Pit, Primary and Secondary Crusher Valley Fill Heap Leach PadMerrill Crowe PlantRefinery Environmental Facts: High Rainfall - Average Annual Precipitation of 1,200 mm (47 inches) Rainfall Events: Common 20mm daily events High Altitude Site - Elevations range from 3900 to 4250m. Steep topography - Terrain ranges from 3:1 slopes up to cliffs. Water Issues: Sediment Control - Open Pit PAG Encapsulation - Waste Dump Stormwater control - Leach Pad Erosion Control Techniques ? Offsite impacts mitigation Social Issues: 11 communities surrounding the property Town of Huaraz

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 P. H. Oliver

The current theory of how explosives fracture rock offers no explanation for the improvements in fragmentation and the reduction of fly rock and back break which occurs when an adequate inter-row delay time is used. Nor does it explain why fragmentation improves with rectangular drill patterns where the hole spacing may be as much as four times the hole burden. A new theory of rock fragmentation is proposed which builds on the existing theory. It offers rational explanations for the many blast effects which the current theory does not address and the need for adequate timing delays between rows. It improves on the design of inter-row delay timing by defining the length of free-blasted face needed in front of a hole when selecting the delay element which will provide an adequate inter-row delay time.

May 1, 2003

By James W. Cassie

The Snap Lake Diamond Project is located approximately 220 km northeast of Yellowknife, NT, Canada at an approximate latitude of 63?35?. The project location is within the zone of continuous permafrost; measured ground temperatures are about ?2?C at 10 to 20 m depth below surface. The site is located on a peninsula jutting into Snap Lake. The site is generally barren of vegetation, except for some isolated areas with low trees located in topographic lows and near the shoreline of Snap Lake. As part of phased evaluation process with regards to the mining project, an Advanced Exploration Program was undertaken in 2000 and 2001. This program included the underground extraction of a bulk sample of kimberlite, which was processed on site. A Processed Kimberlite Containment (PKC) area was required as part of this program. The area chosen as the PKC facility was a small inland lake, called Inland Lake #1, on the peninsula. Construction of the PKC area required the construction of two dams, one on either end of the lake. At the south end of the lake, Dam 1 was constructed partially on a talik and partially on continuous permafrost. Dam 2 was constructed entirely on permafrost. The effects of the remote location, selection of suitable construction materials and permafrost conditions on the designs of the dams are discussed. A description of the design elements and construction schedule are provided. A review of the performance of these two dams, in terms of settlement, deformations, pore pressures and thermal regime, over the last several years is provided.

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 John E. Udd

In early 2000, CANMET-MMSL was engaged by the Ontario Ministry of Labour (OMOL) to conduct an international study of the practices, in several key mining jurisdictions, of determining the criteria that are used to decide when the wire ropes used in mine hoisting are to be retired from service. Subsequently, the writer visited key officials and institutions in Canada, the USA, the Republic of South Africa, the United Kingdom, Germany and Poland. Material from the Australian province of New South Wales and Hungary was also included. The report that resulted included, among other sections; (1) the history of wire rope and trends in manufacturing technology; (2) a review of mine hoisting practices; (3) the requirements as regards safety factors; (4) a review of the players and the inspection practices; (5) the criteria for rope replacement; (6) a look into the future to outline the developments that could take place in both hoisting and rope inspection practices in Canada; (7) recommendations. Subsequently, the report was issued as a book by OMOL, and as a CD-ROM by the Mining and Mineral Sciences Laboratories, Natural Resources Canada. In this paper the author presents the key findings and the recommendations made in the study.

May 1, 2003

By Joseph J. Poveromo

The blast furnace today continues as the primary production method of hot metal in large-scale steel production. The blast furnace process has been the target of repeated attempts to replace it with various process options, including direct reduction and coke-free smelting reduction. While these new technologies are being adopted in appropriate niches, the blast furnace has responded to the challenge by being amenable to continuous improvement. I will review the role of the blast furnace, major developmental and improvement trends, and then list the current important issues in ironmaking. I will outline the challenges to be faced by the blast furnace to maintain its position as the primary hot metal production process. The material presented here is an update of earlier presentations made in Stockholm, Sweden, 1996, Duluth, 1998 and Chicago, 2000.

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 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 A. Proulx

Durant les années 1955 à 1961, plusieurs campagnes d?exploration ont été menées sur la zone Bond dans la partie sud-ouest de l?anneau nord de la carbonatite d?Oka (propriété de Niocan, figure 1). Les zones minéralisées HWM1 et HWM2 sont découvertes à l?ouest de la propriété. Un des forages, le S-60, avait intercepté 80 mètres de minéralisation à 0.71% Nb2O5 à l?est des zones HWM1 et HWM2 mais aucun autres travaux d?exploration n?avaient été réalisés sur cette interception minéralisée. En 1995, Niocan réalise une campagne de forage pour mieux définir la zone minéralisée recoupée par le forage S-60. En 1997, une seconde campagne de forage détermine un tonnage de 14.37 Mt avec une teneur de 0.66 % Nb2O5 pour la zone S-60 (Marcotte et Gagnon, 1997). Le complexe carbonatitique d'Oka se situe à environ 35 km à l?ouest de Montréal sur la rive nord du lac des Deux-Montagnes. Sa formation remonte au Crétacé précoce (entre 117 à 123 Ma). La carbonatite d?Oka fait partie de la suite d'intrusions alcalines que constituent les collines Montérégiennes. Le complexe a une forme allongée (7.2 km par 2.4 km) orientée NO-SE (figure 1). Il est intrusif dans des roches précambriennes constituées d?anorthosites au nord et de gneiss charnokitique au sud (Gold, 1963) appartenant à la Formation de la colline d?Oka. Les gneiss au contact du complexe sont fénitisés sur une épaisseur qui peut atteindre jusqu?à 60 mètres. Les roches carbonatitiques forment la série dominante du complexe et elles sont composées principalement de calcite (> 50 %) à gros grain et parfois rubanées. Les minéraux accessoires les plus communs sont la biotite, le pyroxène, la monticellite, la magnétite, l?apatite, la forstérite, la mélilite, le pyrochlore, la pérovskite, la niocalite, la pyrite et la pyrrhotite (Gold, 1963).

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 D. Berkley

The competitive pressure, the increasing energy costs and the environmental regulations impose substantial challenges to the definition of power plants serving industrial facilities. Primary mining and metallurgical facilities have even greater challenges because they are often located remotely, where the fuel supply can be a problem. The absence of a power grid imposes challenges on the reliability and quality of the electrical energy supply. In addition, the facilities usually require thermal energy too, not only electricity. This paper outlines these types of issues that have to be considered when defining a cogeneration plant integrated with a remote located industrial facility. It is addressed to the ?users? of cogeneration facilities rather than to ?generators.? The focus is on analyzing various site-specific design considerations to pre-screen the feasible cogeneration alternatives and minimize the number of options to be analyzed from the economics viewpoint. This approach could substantially reduce the engineering effort and schedule during the feasibility phase of the project. Part 1 of this paper (Berkley, 2003) provides a basic understanding of cogeneration plants of various types to establish a common language. Part 2 outlines and analyzes specific issues that could be of help in the definition of cogeneration installations for remotely located industrial facilities, with a focus on mining and primary metallurgical plants.

Mar 1, 2003

By Tony Lipiec, Greg Gosson

"When it comes to new mines being developed, there is a general industry consensus that most low-hanging fruit has been picked. Many projects currently in the mine development pipeline have been around for decades, but were held back because of technical challenges. Future development of these deposits will likely require access to the public capital markets, and in Canada that means providing scientific and technical disclosure on these deposits in compliance with NI 43-101. As many of these “challenged” projects have metallurgical issues, the companies that own the projects need to ensure their metallurgical Qualified Persons provide transparent disclosure regarding proposed solutions to those issues.This paper provides an overview of the disclosure requirements under NI 43-101 that are pertinent to metallurgists, and other Qualified Persons who prepare technical disclosure regarding the metallurgical characteristics of a mineral project. It lists the triggers for a technical report under NI 43-101 and Canadian stock exchange policies, and identifies the sections of the report that should involve input from a metallurgist or process engineer. It briefly outlines new civil liabilities under Canadian securities laws that increase the possible consequences for not complying with the technical disclosure standards.These materials are provided for general information purposes only and do not constitute legal advice. Readers are advised to seek specific legal advice from their own legal counsel in relation to any decision or course of action contemplated."

Jan 1, 2003

"The standards set out requirements of the Toronto Stock Exchange for company’s providing information to investors, regulators and/or the media regarding their mineral properties. In addition, information contained in new releases, continuous disclosure documents [annual report], or other forms of communication [printed investor relations materials and electronic publications] are also subject to these standards.1.0 INTRODUCTIONThe disclosure of the results of exploration and development activity on mineral properties mustcomply with the requirements of the Toronto Stock Exchange Policy Statement on Timely Disclosure, theOntario Securities Act and all applicable policies and rules of the Ontario Securities Commission and anyother securities regulatory body having jurisdiction over an issuer listed on the Exchange. In particular,the requirements of National Instrument 43-101 must be followed.The purpose of the standards is to set out the requirements of the Toronto Stock Exchange when acompany provides information to investors, regulators and/or the media regarding its properties, whethersuch information is contained in a news release, a continuous disclosure document such as an annualreport, or other form of communication, including, but not limited to, printed investor relations material andelectronic publications such as Internet Web sites. These standards do not apply to prospectuses orlisting applications, the standards for which are contained in the policies and rules of the securitiescommissions and the Exchange. These standards are also not intended to establish requirements for thecontent of technical reports.Any information published by or on behalf of a company must comply with these standards. If acompany becomes aware of information published by others regarding its mineral properties which ismaterially misleading to investors, it should take appropriate action to correct such information orotherwise make it known that it is not responsible for publishing such information and does notnecessarily agree with such statements.Disclosure concerning mineral properties should identify the ""qualified person"" as defined in NI 43-101 who is responsible for the work conducted on the property and such person shall have read andapproved of the technical disclosure."

Jan 1, 2003

By Yannis Faitakis, Simon Bergeron

"This paper describes the implementation of model-based predictive control (MPC) on a vacuum heat exchange network at Alcan's Jonquière Complex. The plant produces alumina from bauxite ore using the Bayer Process.The MPC system was commissioned in 2000, by Alcan personnel and an Advanced Control Engineer from Matrikon. The application has achieved an uptime of about 97%.The benefits were:• Energy savings : 0.5% - live steam reduction• Reduced variation: standard deviation of key temperatures reduced by 50%• Plant throughput increase: via the automated use of surge tanks• Decreased supervision time: by plant operations• Faster and easier diagnosis of problems and plant constraintsThe benefits were higher than expected with a payback time around 12 months.The purpose of the vacuum heat exchange network is to recover energy from a hot stream (pregnant liquor) by transferring it to a cold stream (spent liquor). The system is very tightly coupled, and the main constraints of the multivariable control system are: • to control the many tank levels involved in the process (8 tanks)• to maximize the temperature of the heated streams (spent liquor)• to prevent cooled streams (pregnant liquor) from cooling to below a minimum temperatureThe system includes 9 manipulated, 14 controlled and 2 feedforward variables.The advanced control implementation runs under an expert system environment and provides added flexibility to the overall control strategy."

Jan 1, 2003

By Victor A. Sowa

"Abstract - In 1938, a body of goethite and hematite was discovered beneath Steep Rock Lake near Atikokan, northwestern Ontario. This was at the time the largest and richest undeveloped iron ore body in North America. Mining began in 1944, fast-tracked by the needs of World War II, and through 1979 produced 79 Mt of 56.5% Fe. Production required the diversion of the Seine River, draining of Steep Rock Lake, building of a railroad, and a 25-fold increase of the local population. The mining project, at the time, was the largest project of its type undertaken in Canada. The current concepts of sustainable mine development and mine closures have advanced considerably since the period of operation and closure of the Steep Rock mines, and those operations would probably not have met current expectations of sustainability. However, some of the post-closure aspects of the mines provide illustrations of components of sustainability, which could form part of a basis for a post-mining sustainable land use plan. It is concluded that some of these components were successful in meeting current expectations of sustainable use, and although some aspects are unique to the circumstances at the Steep Rock mines, others could be applicable at other mine sites."

Jan 1, 2003

By M. Vallée

"Geological and technical problems are often considered the most important ones affecting new mining projects. Typical problems and likely causes are reviewed based on current Quality Management and Continuous Improvement (QMCI) perspectives, giving particular attention to the work of W.E. Deming. As the “system approach” is an essential part of these policies, its characteristics are described with particular attention given to cultural- behavioural, organizational and systembased constraints described by J. Gharajedaghi. Given that poor communication and interaction among geologists, mineral processors and mining engineers/operators can seriously affect the adequacy of tests, project planning and execution, and mine profitability, these interrelated processes within the mining systems are analyzed and modelled. The impacts on models and simulations of ignoring typical data, information and knowledge uncertainties are addressed. Adapting W.E. Deming’s Fourteen Points, System of Profound Knowledge and insistence on leadership, and the analysis of mining system constraints, will allow the effective QMCI approach required to reduce geological and technical risks. Whenever we achieve this goal, we will be in a better position to overcome environment-, market-, finance- and community-related problems, achieve higher company and industry profitability as well as more sustained development. RÉSUMÉLes problèmes géologiques et techniques sont souvent considérés les plus importants parmi ceux qui affectent les nouveaux projets miniers. Des problèmes typiques et leur causes sont étudiés dans la perspective de gestion de la qualité et d’amélioration continue (GQAC), en relation avec les travaux de W.E. Deming. Comme l’approche système est au centre de ces méthodes, ses caractéristiques sont décrites en donnant une attention particulière aux contraintes de types culturel-comportemental, organisationnel, et systémique décrites par J. Gharajedaghi. Compte-tenu que les lacunes dans les communications et les interactions entre géologues, minéralurgistes, et ingénieurs/opérateurs miniers peuvent affecter sérieusement la validité des essais, de la planification et de l’exécution des projets ainsi que la rentabilité des exploitations, ces processus connexes font l’objet d’analyse et de modélisation. Les impacts sur les modèles et les simulations de l’incertitude des données, informations et connaissances sont soulignés. En adaptant au système minier les Quatorze Obligations et le Système de connaissance approfondie de W.E. Deming ainsi que l’analyse des trois types de contraintes, nous pourrons développer une approche GQAC permettant de réduire les risques géologiques et techniques des projets miniers et des exploitations. Ceci nous pemettra de mieux faire face aux problèmes reliés à l’environnement, aux marchés, au financement et aux conditions sociales, d’améliorer la rentabilité des exploitations minières et de l’industrie, tout en contribuant de façon accrue au développement durable."

Jan 1, 2003

By R. Hamilton

"Louvicourt mine began operation in 1994. It is located in northwestern Quebec, 20 km east of Val d’Or. The mine is owned by Aur Resources (30%), which operates the mine, Teck/Cominco (25%) and Novicourt (45%). By the end of 2002 there were approximately 280 employees working on the site, including contractors. Production averages 4300 tons per day, working a massive sulphide body located between 415 m and 920 m underground.Maintenance expenses represent 27% to 29% of the operating costs, and the maintenance personnel represents 34% of the total workforce (including electrical, mechanical and concentrator maintenance staff). Considering these figures, in addition to capital costs and indirect costs, such as energy (electricity, fuel, gas, etc.), it is worthwhile to pay attention to how things are done in order to protect such investment. Every task performed to help understand the impact of Louvicourt’s practices must to be seen as an investment in the reliability of its operation."

Jan 1, 2003