Search Documents

By W. J. Miles

Diatomaceous earth or diatomite is a sedimentary rock of organic origin that is composed principally of the silicious skeletal remains of diatoms. Diatoms are microscopic single cell acquatic plants that are related to algae. Diatoms first became abundant in the Cretaceous period from about 65 to 135 million years ago. Most of the commercial deposits are of Pliocene through recent age, and are younger than 35 million years. Diatoms are still abundant in present day lakes and seas. The living diatom is supported and protected by two half cell walls or valves united by a connecting band or girdle. These valves are composed of opaline silica extracted from the water in which the diatom lives. After death of the diatom, the silicious remains settle in the lake or sea and accumulate at variable rates approaching several millimeters per year for very active diatom colonies. This accumulation of silicious sediments, after decay of the organism, burial, and uplift, can result in the formation of diatomaceous earth deposits.

Jan 1, 1987

By Collon C. Kennedy, Frances C. Hartogh, C. Joel Casburn

INTRODUCTION During the nineteenth century, the federal mining law was enacted with the objective of promoting the development of the western United States by providing unrestricted access to vast areas of federal land for mineral exploration. Prior to the advent of comprehensive federal, state and local land use plans, there was little, if any, regulation or restriction of mineral exploration activities. Today, the laissez-faire policies of the past that encouraged mineral exploration have gradually given way to the public's legitimate concerns regarding environmental protection, multiple use and planned land development. As a result, the contemporary prospector confronts a maze of statutes, ordinances and regulations with which he must comply to obtain the requisite approvals and permits before commencing mineral exploration on federal, state or private lands. This presentation will provide a broad overview of the exploration permitting process. The first section of this paper recommends certain general management practices to follow when attempting to obtain exploration permits. The second section presents two hypothetical cases, one involving a drilling program on private property in California and the other involving a drilling program and the removal of a bulk sample for metallurgical tests from federal land in Nevada. The cases are used to discuss jurisdictional issues and application of certain federal, state and county laws and regulations that pertain to mineral exploration. The final section contains a brief analysis of three important recent United States Supreme Court decisions. These decisions address the scope of the federal pre-emption doctrine as it applies to activities conducted on unpatented mining claims and the constitutional limits of permissible state and local land use and zoning regulations. PERMITTING PRACTICES The environmental impacts associated with mineral exploration generally result from the construction of drill sites, roads or trenches. Consequently, after the regulatory authority has considered the issues of permissible land use, the primary emphasis of the permitting process is to address problems related to pre-construction site identification and clearance, and post-construction site reclamation. The approaches taken to address these and other related issues vary with the scope of proposed work, the site, the appli-

Jan 1, 1987

By John W. Welty

Volcanic activity occurred during six periods of Arizona's geologic history. Precambrian volcanism occurred in two pulses at 1.8-1.6 billion years (b.y.) ago and at 1.2-1.1 b.y. ago. Volcanism occurred again in mid-Jurassic and Laramide (Late Cretaceousearly Tertiary) time. Volcanic rocks from these times are not used commercially in any significant quantity. Middle and late Cenozoic magmatic activity covered large areas of Arizona with voluminous volcanic rocks. During the mid-Tertiary magmatic pulse, explosive silicic magmatism, with eruption of areally extensive ash-flow tufts, covered large areas in the Basin and Range Province, while the Colorado Plateau remained largely unaffected. Basalt eruption also occurred during and immediately after silicic volcanism, leading to compositionally diverse suites of volcanic rocks. Late Cenozoic volcanism occurred throughout Arizona and was dominated by wide-spread eruption of basalt flows with local cinder-cone clusters and siliceous volcanic deposits. Perlite deposits near Picketpost Mountain in northeastern Pinal County account for the bulk of the industrial uses of mid-Cenozoic volcanic rocks. Other perlites of presumed middle Tertiary age are present in central, southeastern, and western Arizona, but to date remain unexploited. Arizona Fire Agate is a valuable gem material and is associated with volcanic rocks of middle Tertiary age. Basaltic rock of this age also is utilized in the manufacture of rock wool for insulation. Late Cenozoic volcanism produced most of the industrial-quality volcanic rocks. Basalt, cinder cones, and materials of rhyolitic composition are commercially exploited by municipal and Federal agencies and private industry for aggregates, road conditioners and maintenance materials, asphaltic concretes, cinder block construction, pozzolans, and landscaping. These deposits are generally confined to the Flagstaff and Springerville areas. A famous peridot gem locality is associated with late Tertiary basalts at Peridot Mesa on the San Carlos Indian Reservation. Important products derived from altered volcanic materials of late Cenozoic age include clay and zeolite. Arizona's volcanic-rock sequences are still incompletely known, particularly in central and western Arizona. The potential for recognition and exploitation of important new deposits of useful volcanic materials is high.

Jan 1, 1987

By Josef Martinsen

This paper describes two-lane dual motorway tunnels under construction in Bergen. The tunnels are part of a by-pass motorway system throuth the most congested area of the city of Bergen. The tunnels are unique due to their length, heavy traffic, longitudinal ventilation system and the use of a tunnel boring machine, or "TBM", to excavate through hard rock. The tunnels are being built by The Norwegian Public Road Administration and the TBM was delivered by the Robbins Company. The diameter of the TBM is 7.8 m and the tunnel profile is cut by conventional drill and blasting methods in the tunnel's lower half to attain a two lane motorway tunnel. This paper also describes proposed fjord crossings along the Norwegian west coast where the TBM may be used due to its great advantages in comparison to conventional drill and blasting methods.

Jan 1, 1987

By L. R. Todd

Gold Fields' Mesquite mine, located in southeastern California, heap leaches low grade gold ore at an annual rate of 2.7 Mt (3 million st). Ore is crushed in a two stage open circuit and belt agglomerated prior to loading on the leach pads. Since initial heap construction in October of 1985, a number of operating practices have been modified and several agglomeration techniques have been tested in an effort to improve percolation and reduce leaching time. Findings to date are discussed.

Jan 1, 1987

By Michael C. Newbury

For thousands of years gold has been not only a commodity, valued for its comparative scarceness, immutability and homogeneity but also a medium of exchange which has no nationality. Approximately 90% of the gold produced is still accessible in the world, although some of it in museums, galleries, jewellery and dental work is not immediately available for circulation. The majority is held as bars by central banks for their reserves; the balance circulates as coinage or bullion held for investment. The value is further enhanced by the political aspect that gold cannot be debased as paper currency can and, therefore, it always becomes an investment refuge. It has always been possible to buy and sell gold at a price which is readily established by reference to bullion's weight and purity; and it is this fact which makes a loan denominated in gold, rather than one in currency, a viable alternative means of finance. The purpose of this paper is to discuss some general aspects of what is considered to be one of the more effective and presently popular methods of financing the development of a gold mine - the gold loan. This is not intended to discuss all the minute details which must be uniquely designed to fit each individual situation, but rather to provide general guidelines. You will all be aware of the traditional sequence whereby companies primarily finance exploration work by the raising of equity through the sale of shares to the public or by that unique Canadian form.

Jan 1, 1987

By Don Runge, John T. Zeni

Cuprex Limited is currently developing a small gold mining operation in Central Australia in the Tennant Creek field. In February 1984, the company undertook a feasibility study on the project and operations commenced in August 1984. Ore reserves are located between 230 and 280 metres (755 ft and 919 ft) below surface and ore extraction required the establishment of a shaft network for access, ore hoisting and ventilation. Zeni Drilling Company from West Virginia, U.S.A. was contracted to blind drill two shafts for the project. Blind drilling was selected for various reasons, including timing which related to cost efficiency. The blind drill shaft technique has proved successful in this application and with enthusiastic and innovative support from the mining industry, will prove an efficient and cost effective means of accessing and operating underground mining projects of all sizes in the future.

Jan 1, 1987

By Carson Rife, Michael L. Clark

INTRODUCTION Zortman Mining Inc. is a wholly owned subsidiary of Pegasus Gold Corporation of Spokane, Washington. Pegasus has been producing gold and silver from the Zortman and Landusky mines since 1979. The Zortman and Landusky mines are two distinct open pit mines located approximately 6 kilometers apart in the Little Rockies Mining District of north central Montana. The two mines use large-tonnage, low- grade heap leaching techniques to efficiently process the gold and silver ore. PROJECT DESCRIPTION The Little Rockies rise abruptly 914 metres from the surrounding plains to about 1829 metres above sea level. The topography is quite steep, making efficient leach pad construction a major challenge. The climate is semi-arid with moderate summers and occasionally severe winters. Freezing temperatures usually arrive in late October or early November, influencing the effectiveness of leaching operations. GEOLOGY AND MINERALOGY The geology of the Little Rocky Mountains consists of steeply dipping sedimentary ridges forming an elliptical dome surrounding a core of intruding syenite porphyry. Within the syenite porphyry are well fractured and mineralized shear zones where the existing reserves and open pits are located. The ore is presently divided into oxidized, mixed, and sulfide. Only the oxides and mixed zones that are of ore grade are placed on the leach pads. The syenite porphyry host rock enables effective leaching of gold and silver to depths of 61 metres, having a major impact on leach pad construction costs. MINING All mining since 1979 has been by contractor. This enabled initial mining to commence without capital investment in equipment. Through competitive negotiations, Pegasus has been able to keep contract mining costs at levels very close to what would be experienced if Pegasus had purchased equipment initially. Contracts are negotiated yearly and are based on a unit price and haul distance for ore and waste. Haul distances have ranged from as little as 457 metres to as much as 3,050 metres. At present, Pegasus is developing a 27,000,000-tonne leach pad at the Landusky project that is adjacent to the minine area. This design feature will reduce the mining cost by 20 percent over the life of the mine. In 1987, over 5,900,000 tonnes of ore and 3,200,000 tonnes of waste will be mined at the Landusky project. Through 1986, 13,763,000 tonnes of ore have been mined at a waste-to-ore strip ratio of 0.60:l at the Zortman project, and 13,005,000 tonnes of ore at a waste-to-ore strip ratio of 0.79:l have been mined at the Landusky project. Current mining reserves are 32,769,000 tonnes of ore at a waste- to-ore strip ratio of 0.59:l. Through efficiencies of large-scale heap leaching, Pegasus has been able to lower the mining cutoff from 0.34 grams per tonne gold to 0.27 grams per tonne gold. This has reduced the mining cost per tonne of ore h percent through a reduction in strip ratio of 14 percent. Beginning in 1984, all pits were designed based on computer-generated "floating cone" pits. The geologic models were developed by Pegasus staff with a series of economic models evaluated. The resulting computer-generated pits were used as a guideline in designing the mine plans, including haul roads for final calculation of tons and grade. Input to the floating cone models consisted of mining cost, processing cost, cutoff grade (0.34 grams gold per tonne), recovery (67 percent) and gold price. Due to the gold being deposited primarily on the fractures of the syenite host rock, no crushing of ore is needed prior to leaching. This characteristic of the ore is a key in being able to profitably mine and process gold ore at an average grade of 0.69 grams of gold per tonne. Strict blasting control is also a key in success of the leaching operation. A system of splitting ore and waste in blast patterns has been devised to reduce dilution. Also, drill hole spacings are varied from 3m x 3m in breccia ore to 4m x 4m in syenite ore to 5m x 5m in waste. Drill holes

Jan 1, 1987

By D. J. Beeby

California's Surface Mining and Reclamation Act (SMARA) was passed in 1975 to identify and protect mineral resources in areas of high land use conflict and ensure reclamation of mined lands. Under SMARA, aggregate resource availability is quantified and compared to forecasted demand in specific market regions. Fifteen regions studied thus far cover 51,800 km2 (20,000 sq miles) and contain 45 Gt (50 billion st) of high-quality aggregate resources that have been legally designated as "regionally significant," providing a measure of protection previously unavailable. SMARA reports and state testimony at local hearings have supplied objective information and helped reduce conflict in mine permitting decisions.

Jan 1, 1987

By J. W. Rains

Arizona Portland Cement Company's limestone deposit (called Twin Peaks) is approximately 4 miles southeast of the cement plant. The pant is adjacent to both the Southern Pacific Railroad and Interstate 10, about 17 miles northwest of Tucson. Placer claims were filed on the Twin Peaks deposits in 1923. From that time until the present, geologic data have been accumulated and evaluated to define more closely the quantity and quality of the limestones. The cement plant at Rillito was originally constructed as a one-kiln plant in 1949. Capacity was increased in 1952 and 1956, bringing the plant to an annual capacity of 44,000 tons of cement. In 1972 anther expansion program was completed, bringing annual cement capacity to 1.1 million tons. Geologically, the Twin Peaks contain formations ranging from the Precambrian Pinal Schist to the Pennsylvanian Naco Formation. Within this sequence, other exposed formations include the Cambrian Bolsa Quartzite and Abrigo Formation, Devonian Martin Limestone, Mississippian Escabrosa Limestone, and Pennsylvanian Naco Formation. Generally, the Escabrosa, Naco, and Martin Formation are the primary sources of limestone for manufacturing cement. The Martin Formation is basically a dolomite with bands of limestone, quartzite, and siltstone. These limestones are blended with outside source materials (clay and iron ore) to make a raw mix that will make specification cements. Several drilling programs were initiated between June 1946 and March 1982. Information derived from these programs provided the means to develop cross sections, geologic blocks, and grade blocks. The configurations of the geologic and grade blocks are the same. Block boundaries delineate the various formations on any particular level. Cursory inspection of the structure would indicate a broad syncline elevated on the west side. A more detailed examination shows that the structure has been complicated by several periods of faulting and intrusion of igneous rocks.

Jan 1, 1987

By C. D. Harrison, J. W. Parkinson

This paper compares the ash slagging potential of Illinois No. 6 seam coal as raw coal, as commercially cleaned coal processed in a baum-jig plant, and as coal cleaned to a reduced ash specification at the Electric Power Research Institute's (EPRI) Coal Cleaning Test Facility. The comparison is based on ASTM ash fusibility data, a slagging index, gravity fractionation analyses of critical mineral matter compounds, and comparative pilot combustion tests. The first three grounds of comparison are laboratory data. The final comparison involves burning about 13.6 t (15 st) of each coal at Conoco's 4.40-kW/h (1.5 million-Btu per hr) test combustor. The evidence of these four comparisons indicates that lowering the ash specification of coal before combustion can significantly improve the ash slagging characteristics of Illinois No. 6 seam coal.

Jan 1, 1987

By M. J. Allan, D. J. Barratt

This paper reviews current testing methods for sizing autogenom and semiautogenom mills in the North American context with comments on the necessity for test work and requirements for different circuits and equipment selection. The economics of testing and the value received are discussed.

Jan 1, 1987

By Xie Longshui

INTRODUCTION The gold production is from the state-owned gold mines, the local gold mines and the by-product of metal mines. Since 1975, the small gold mines have developed in rapid strides. Currently, there are about 3000 small gold mines in China. Most of them are operated by the local, and the production is about 50% of China's gold output. In the small gold mines, the normalized mining equipments are employed at most of mines, but some mines still use such backward tunnelling and mining tools as pick, shovel and hand hammer etc.. The mining techniques have developed from the primitive to the advanced, especially the methods of open stope, shrinkage and filling have been widely used. Such new mining techniques as bolting, vibrating draw, non-electric ignition and diamond drilling etc. are also introduced in the wall gold mines. In recent years, the development of small gold mines is very fast under the guidance of new mining policy which is ' rapid and great development of large-sized mines, helping small mines to develop, and quick mining for the existing mines; and encouraging the collective and the individual to operate a mine.' GEOLOGICAL FEATURES The gold veins are dominant, which are divided into two types, ie. the mesothermal deposit with altered rock in a crushed zone and the hypothermal deposit with quartz veins. The orebody distribution is not centralized, and the size of deposit and single minable orebody is small respectively. Most of deposit dip at 30° to 50°, characterized by expansion and shrinkage, ramification and compound, thinning out and reappearance, separation and composite at the parallel veins etc.. The ore grade is variable, and the factor of grade change is above 100%. The waste zones with lean or submarginal ore usually exist in deposits. As for the gold deposits with altered rock, the ore boundary is indistinct. Most of gold deposits, particularly the gold deposits with altered rock, are intruded by the late structural rock, thus the faults and joints are developed, and the rock and ore are crushed, especially the host rock of roof wall is very crushed. It ie obvious that the conditions of both formation of deposit and mining are considerably complicated. HISTORY With a long mining history and rich experiences, the local gold sectors are small, but they play an important role in China's gold mining industry. Dated from Xia and Shang Dynasty, the gold goods was made. In the Tang Dynasty, the development of gold mining industry was very fast. A Chinese poem , written by Liu Yuxi -- one of famous poets in the Tang Dynasty, says: As sun is shining over Dengzhou land, The fog on river slowly goes away, The panning girls together meet at bay, The beauty's jewels and stamps of king are gold from river sand. This poem shows the local gold mining was flourishing at that time. In 1888, the local gold mining sectors were all the rage at the moment, and the annual output of gold was as high as 21.5 tons. Since the founding of New China, the development of local gold mining was subjected to several back- sets, but certain advances are made on the whole, especially since 1970. Round about 1970,the simple, backward and indigenous mining was dominant in the small gold mines; for instance, the hand-hammer drilling, the hand-operated winch hoisting and the hand haulage etc.were main methods of gold mining . Up until the late 1970s,great changes took place in stoping, haulage and so on. Currently, some advanced technology and large-sized equipments are adopted in the local gold mines. Generally, the local small gold mining sectors play an important role in development of China's gold mining industry, and are important and attractive sectors. PRESENT DEVELOPMENT

Jan 1, 1987

By M. P. A. Hames, D. R. Beaumont

INTRODUCTION Legend has it that when Isembard Kingdom Brunel was confronted with the cost and consequences of one of his bridges having failed, he responded cheerfully that the event had saved investors and taxpayers a fortune because it prevented him from repeating the same design at several other locations. To meet the demands of rejuvenating and expanding the transportation system in an era of industrial growth Brunel and his contemporaries introduced bold designs and many innovations. Great advances in design and construction techniques resulted, yet these too had their practical limits as the story tells. In the gold mining industry today we face the same challenge of expansion, yet designers must respond mindful of economic restraints. Is innovation the answer? It has two meanings; to bring in novelties and to make changes. Distinguishing between improvement and novelties, or simply recognizing the benefits and limitations of new ideas over proven technology is part of good design. This paper will illustrate the practical aspects of selecting appropriate solutions to a design problem by examining a variety of examples common throughout the industry. Since a variety of engineering disciplines contribute to the design of a gold processing plant, and each has some old wisdom to impart or new development to boast this paper is divided into the different areas of expertise involved.

Jan 1, 1987

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'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'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

By G. Nash

Despite further declines in production for some producers, 1986 proved to be a landmark year for the asbestos industry. The key event was the adoption of The Asbestos Convention by the Inter- national Labour Organization (ILO) and its 150 member countries. The document, entitled "Safety in the Use of Asbestos", reaffirms the international consensus on the "controlled-use" approach to chrysotile asbestos regulation. The decision of the ILO has come at a critical point in time. It represents a major turning point and provides an important building block for the long term future of the asbestos industry.

Jan 1, 1987

By Joaquin Ruiz

Although Mexico is known for its important base-and precious-metal deposits, and lately oil, some industrial minerals play an important role in the Mexican economy. Sulfur, the most important industrial mineral produced, accounts for approximately 7.5 percent of the total value of mineral production. This commodity is followed by fluorspar, which accounts for 6.4 percent. Predominantly, the fluorspar deposits are very high grade (75 percent CaF) and are contained in lower Cretaceous limestone in the states of Coahuila and San Luis Potosi. Base-metal deposits in the area of Parral (notably San Francisco del Oro), however, have become important fluorite producers in their own right. (San Francisco del Oro has 12 percent fluorite gangue.) Salt from the Guerrero Negro solar-evaporation ponds in Baja California account for 6 percent of the total shares; phosphate from Baja California also accounts for 6 percent. Barite from man to deposits in Lower Cretaceous limestone in Coahuila and exhalative deposits in the Paleozoic section of Sonora account for 1.0 percent. In addition, Mexico is an important producer of gypsum, graphite, and celestite. Although graphite and celestite are not large-scale operations and thus do not contribute much to the Mexican economy, the Mexican graphite and celestite deposits are among the most important in the world; Mexico is one of the world's few sources of celestite. The celestite is in the form of large, high-grade mantos in Cretaceous limestones in northern Mexico.

Jan 1, 1987

By Walter R. Lawrence

Newmont Gold Company, formerly Carlin Gold Mining Company, is a publicly owned corporation, 95% owned by Newmont Mining Corporation. Newmont Gold Company has operated gold recovery operations North of Carlin, Nevada, since 1965. Development of the Gold Quarry ore body, 19 kilometers south of the original mine, resulted in the decision to construct gold recovery and ancillary facilities in what is referred to as the Southern Area. Plant No. 2, located 11 kilometers North of Carlin, Nevada, was designed to treat 6350 tonnes per day of oxidized gold bearing ore assaying 2.5 grams per tonne of Au at an average recovery of 87%. Flowsheet development conducted by Newmont personnel resulted in the decision to construct a carbon-in-pulp recovery circuit preceded by two-stage grinding, Detailed engineering was done at Toronto by Bechtel of Canada beginning on January 1, 1984. Actual construction began on March 1, 1984, and was completed in June, 1985. First feed was run on June 22, 1985.

Jan 1, 1987

By H. G. Fleshman

?Wyoming bentonite? has become almost a world-wide trade mark for high quality sodium bentonite. Although bentonite is produced in more than a dozen U.S. states the largest producing area covers Wyoming and adjacent parts of Montana and South Dakota. Bentonite was originally known as Taylorite and later renamed Bentonite by Dr. Sam Knight, the State Geologist of Wyoming. The new name came from the Fort Benton shale member of the Mowry Formation. Bentonite is a clay consisting essentially of the montmorillonite group of minerals. Since bentonite has good ion exchange capabilities, various cat-ions are easily replaced. These cations are usually calcium and sodium; however, magnesium, lithium, potassium, and others can be exchanged. One way of classifying the clay is based on its swelling capacities when wet or added to water. Bentonite having sodium as the dominant exchangeable ion typically has very high swelling capacities and forms gel-like masses when added to water. Bentonite in which exchangeable calcium is more abundant than other ions has much lower swelling properties than sodium varieties.

Jan 1, 1987

By T. M. Plouf, G. A. Lang

INTRODUCTION The finding or acquisition of ore bodies containing 200,000 opt gold and greater is becoming more difficult. There are more investors and small heap leach operators who have or can raise the capital to make the investments in the large ore bodies. Echo Bay Mines' approach has been to regionally develop small ore bodies, two or three in the same geographic location, which when considered together contain over 200,000 opt gold. CONCEPT The "world class" ore body syndrome, which many large gold producing companies maintain, can restrict company growth if the finding or acquisition of these large ore bodies is not forthcoming. Another approach has been taken by Echo Bay Mines. The concept is to regionally develop two or three small ore bodies suitable for processing with portable equipment. The systematic scheduling of mining, processing with a single flexible processing plant using the same management/ operator team can reduce your overall investment. The initial selection of mining and crushing equipment suitable for sun11 open pit operations is essential. A very viable option in the mining sequence is to use contract mining/crushing/screening/agglomerating and stacking. This option also lowers your initial capital investment and increases the flexibility in mining as you move from one mining operation to another. LOCATION AND SEQUENCING One single small ore body of itself is not attractive enough for the large producer. The recovery of the initial capital investment, although very rapid, does not make a viable project. The only alternative is to find two or more small ore bodies close enough geographically to each other so that the same management/operator team can be used to run the operations as each is put into operation. Echo Bay Mines has regionally located several ore bodies ranging in recoverable ounces up to 100,000 oz. These small separate ore bodies, located within a 30-mile radius of each other, for planning purposes have been considered as one single ore body. The first small ore body has the initial burden to recover the capital invested in the office, laboratory, power plant and processing plant. Other capital investments such as water supply, access and haul road, fencing, septic system, pads and ponds are reoccurring at each mine site. The first small ore body must recover the initial capital investment in the movable structures as well as the reoccurring capital investment in the fixed structures very rapidly. A total capital recovery time of 6 to 9 months should be used as an economic decision point for both choosing which small ore body should be processed first, and what the plant design capability should be. The sequencing of the small mines is very critical. All the fixed structures mentioned above must be installed at the second mine site before the first mine has been mined out. The ideal sequencing will allow for only one month between shutdown of the first small mine and production from the second. SPECIFIC OPERATION Echo Bay Mines has completed the construction of the Illipah Mine located in White Pine County, Nevada, with this small mine sequence approach. The Illipah Mine is a 40,000 ounce recoverable gold ore body. This ore body met all the necessary requirements. The Illipah project could support the capital investment in the movable structures which will

Jan 1, 1987