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By R. A. King, B. G. Hunt, C. E. T. White

"This paper reviews the history, occurrence, properties, and uses of indium, and describes the commercial production and fabrication of that metal by The Consolidated Mining and Smelting Company of Canada, Limited (Cominco), at Trail, B.C'. Indium is produced commercially at Trail from dross retreatment furnace D.R.F.) slag, a complex by-product of the lead smelting operations. Furnace feed prepared from this slag is smelted with coke and limerock in an electric furnace. The e1ectric furnace bullion is parted electrolytically, producing a market-able lead-tin alloy containing about 8 per cent tin, and leaving the indium in the anode slime. Recovery of indium from the anode slime involves roasting the slime with sulphuric acid, followed by leaching with water, purifying the leach solution, recovering the indium by sponging with zinc or aluminum, and re-fining electrolytically. This process yields standard grade (99.97+ per cent) indium which is either sold or refined •to high purity ( 99.999 per cent) indium for special uses requiring higher purity metal."

Jan 1, 1959

By F. R. Archibald

SINCE the opening of the Beattie mine, in 1933, the concentrate produced by flotation has been considered refractory. As the gold extraction by cyanidation was poor, the concentrate, during the first four and a half years of operation, was shipped to a smelter for further treatment. After the installation of the cyanide plant, in 1934, seventy per cent of the gold in the concentrate was recovered before shipment to the smelter. In 1937, a roasting plant was built so that treatment might be complete at the mine. Much experimental work had been done by a number of investigators prior to the installation of the roasters, but none of them had seriously attempted to identify the causes of, or the elements responsible for, the refractory behaviour of the concentrate. Intensive investigation in this direction commenced in the Beattie lab-oratory in July, 1938, has led not only to the identification of several causes contributory to the refractory behaviour, but also to revisions in procedure and principles with respect to roasting Beattie concentrate in particular and arsenical concentrates in general. The accuracy of the identification of these causes and the soundness of the principles is borne out by interpretation of roasting plant records, by improvements and simplification since applied. to plant operation, and also by laboratory and test-plant results on arsenical concentrate produced by another mine. It is the purpose here to present an account and interpretation of the laboratory investigation, together with a correlation of laboratory and plant results. Incomplete extraction of the gold by cyanidation after roasting is due primarily to the nature of the material roasted, and secondarily to the manner in which it has been roasted. There is a possibility that better extraction may be obtained by improvements in both particulars.

Jan 1, 1939

By L. Heber Cole

The search for potash in western Canada during the years of the great war led to the staking of claims on many of the "alkali lakes" and sloughs which occur in numerous localities in the morainic areas of the prairies, as well as in British Columbia, in the hope that potash salts would be found in commercial quantities. While the search for potash, up to the present time, has been disappointing, the prospecting of these areas has demonstrated that Canada possesses large reserves of sodium and magnesium compounds, principally in the form of sulphates, carbonates and chlorides. he writer first became interested in these deposits in 1911 while investigating the sodium chloride springs of northern Manitoba. In the fall of that year a number of the sulphate ? deposits in Saskatchewan and Alberta were visited, but owing to the excessive rains at that period, all the deposits were under water and only a few brine samples were obtained. Owing to pressure of other work investigations of the alkali deposits in western Canada, by the Mines Branch of the Department of Mines, could not be undertaken until the field season of 1921, but since that time the work has been continuous. During the summer of 1918 a reported discovery of a large deposit of potash bearing salts was featured in western papers and in a short time practically all the lakes and sloughs of the prairie provinces, which showed the least indication of being saline, were staked for potash. This reported discovery was not substantiated on investigation and many of those who had staked claims allowed them t~ lapse without the slightest effort to determine the character of the material in the deposits which they? had leased.

Jan 1, 1924

By R. D. Brown

"Finance Minister Donald Macdonald's budget of May 25, 1976 featured a restructuring of the anti-inflation profit controls and a grab bag of tax changes, some of direct interest to the mining industry. All Canadian taxpayers now will be permitted to write off immediately 100% of mineral and oil and gas exploration expenses included after• May 25, 1976 and before July 1 1979. The cost of acquitting Canadian resource property after May 6, 197.4 from a federal or provincial government will now clearly be included in Canadian development expense, and provincial drilling and exploration incentives received after May 25, 1976 will not reduce exploration and development expense for federal income tax purposes. Under tough new anti-inflation profit controls, all controlled businesses, except distributions, will essentially have one uniform set of rules for• determining allowable profit margins; this allowable margin will be determined by product line or by over-all net margin and will be 85% of the higher of the margin obtained in the five years preceding October• 13, 1975 or the one year preceding May 1, 1976. The basic capital cost allowance system is to continue, but many rates will be revised. The ability to offset losses created through claiming capital cost allowances on leased equipment, etc. against other income will be ended with respect to transactions entered into a/te1• budget night. Miscellaneous other tax changes will raise the low rate base for Canadian-controlled private corporations to $750,000 increase retitement plan contribution limits and reduce the rate of branch tax imposed on branches of corporations resident in a country with which Canada has a comprehensive tax treaty to equal the withholding tax rate on dividends under that treaty."

Jan 1, 1976

By Rene Cane, V. I. Lakshmanan, John Starkey, Richard May

"The Agrium Kapuskasing Phosphate Operation mines and processes up to 6,000 t/d of phosphate ore. Run-of-mine crushing to minus 6 inches is done in a toothed roll-crusher, while grinding is done in a SAG/ball mill circuit with no coarse recycle classification of the SAG mill discharge. The primary grinding mill is an 18 ft. diameter x 9 ft. EGL, 1500 HP variable speed SAG mill and the secondary mill is a 13 ft. diameter x 21 ft. long, 2000 HP fixed speed, ball mill. When hard ore was treated, the SAG mill restricted the tonnage that could be ground. When soft ore was treated, the ball mill and spiral classifier overloaded and restricted throughput.Recommendations from a plant benchmark and an ore hardness testing program, on how to better utilize installed energy in the Agrium SAG mill when treating soft ore, and how to obtain best results when treating hard ore, were checked in a pilot plant investigation in the 3 ft. diameter Starkey-PRO Pilot SAG Mill. Correlation between the ore hardness testing and the results from the 3’ Pilot SAG mill was very good. In addition, the work indicated the results that could be expected for the different ore types when using either smaller SAG discharge grates and/or a vibrating screen with 10 mesh square opening cloth.INTRODUCTIONAgrium Kapuskasing Phosphate Operation consists of a 6800 t/d open pit mine and a concentrator, near the Town of Kapuskasing in Northern Ontario. The two major ore types are sandy ore and cemented ore. Sandy ore is fine, soft and easy to grind in the SAG mill while cemented ore is harder, more blocky and difficult to grind in the SAG mill. The ratio of sandy to cemented ore in the deposit is thought to be in the order of 80:20 but can range as high as 5050, so it was important for the grinding circuit to have the ability to treat sandy ore alone."

Jan 1, 2002

By C. O. Stee

IN the October, 1936, issue of the Canadian Mining Journal there was published a series of very comprehensive and exccellently illustrated papers by Mr. C. O. Stee and members of his staff dealing with Siscoe operations and ore-bodies. These were, in the order in which they appeared: Geology of Siscoe Gold Mine, by O. L. BACKMAN Diesel Power at Siscoe Gold Mines, Ltd., by C. O. STEE andE. A. BLOMQUIST Mining at Siscoe, by L. T. POSTLE and W. F. Engineering and Surveying, Siscoe Milling Practice, Research and Testing Laboratory, Assaying of Mill Tails and Solutions, BROWN(6) by P. A. TEEPLE (7) by L. E. DJINGHEUZTAN by L. RIVETT (8) by G. IRWIN (9) The Editor of the Canadian Mining Journal cordially assented to our suggestion that these papers be reviewed at the 1937 Annual General Meeting of the Institute, and the authors very kindly accepted our invitation to present such reviews . Of these courtesies, full acknowledgment is here accorded. To our readers, we commend the original papers in the Canadian Mining Journal. The summaries presented at the meeting follow. EDITOR. THE GEOGLY OF THE SISCOE MINE The Siscoe gold deposits lie in and near a stock of granodiorite, related to the Bourlamaque batholith, which has intruded highly folded Keewatin volcanic rocks .. The volcanic rocks lie to the north of a belt of Timiskaming sediments.

Jan 1, 1937

By M. Holmes, R. Molnar, E. Norton, K. Baxter, J. Riordan

The Boleo Copper-Cobalt-Zinc-Manganese Project of Baja Mining Corp. is situated adjacent to Santa Rosalia on the Baja Peninsula of Mexico. The El Boleo ore is a mixed oxide-sulfide deposit with major values in copper, cobalt, zinc and manganese. The metallurgical process designed to treat the El Boleo orebody involves a sulfuric acid leach in seawater using oxidative and then reductive leaching to maximize metal extraction. The leach solution is separated from the barren solids via counter current washing through a series of high rate thickeners. Copper is recovered using conventional SX-EW processing as cathode. Zinc and cobalt are extracted from the copper SX raffinate after iron and aluminum precipitation. The CSIRO DSX solvent system (Versatic® 10 and LIX® 63 mixture) are used in this extraction. Manganese remains in the DSX raffinate and is recovered by soda ash addition as a high quality manganese carbonate precipitate. Zinc and cobalt are acid stripped from the loaded DSX solvent. Zinc is then re-extracted away from cobalt using Cyanex® 272 extractant and stripped into a highly concentrated strip liquor (+100 g/L Zn) and directed to either a spray dryer or a granulator for production of zinc sulfate monohydrate. The zinc solvent extraction raffinate, containing cobalt, advances to another SX circuit using Cyanex® 272, for the recovery of cobalt as cobalt cathode. In this paper, the detailed results from bench and integrated pilot plant testing for zinc recovery from the El Boleo ore will be described. The results of this testing are currently being used to engineer the commercial plant at El Boleo.

Jan 1, 2008

By G. Van Weert, O. Wang

"As part of a general review of processing double refractory ores through Barrick Gold’s autoclaves / CIL facility at Goldstrike, blanking the preg robbing native carbon in the process solids with hard (m.p. 55 - 60 º C) paraffin wax was studied, specifically in relation to pressure oxidation. The improvement in CIL gold extraction was found to depend on the wax addition point, with hot, dry contacting of the ore in the presence of wax - prior to POX - yielding the largest, most consistent improvement in gold extraction.INTRODUCTIONDouble refractory gold ores present two barriers to gold extraction. The first is generally a physical barrier: the gold is encapsulated or dispersed in a matrix which is impervious to the gold lixiviant. In most cases, including Carlin Trend, NV, deposits, this involves a pyrite or arsenopyrite matrix, although minor gold may also be dispersed in competent silica (quartz) or iron oxides. Gold can be rendered accessible by oxidative destruction of such sulphide matrices. At Goldstrike this is practised by roasting and autoclave oxidation (Thomas, 1994). It is the latter route to which this paper refers.The second barrier refers to the actual gold recovery. Gold may be extracted from the pressure oxidized solids with cyanide, forming a gold cyanide complex. One characteristic of this complex is that it adsorbs on graphitic surfaces. This is taken advantage of on a large scale by gold millers, who use manmade activated, i.e., graphitized carbon particles to remove the gold from solution during leaching: the Carbon-In-Leach, or CIL process. The gold cyanide bearing carbon particles are larger than the ore solids and can be separately recovered by screening. Goldstrike uses the CIL technology to recover gold. The second barrier becomes problematic when the ore naturally contains graphitic orcarbonaceous material, hereafter referred to as native carbon (versus the man-made activated carbon). This material may also adsorb gold cyanide in competition with the activated carbon. Since the native carbon is ground with the ore it is much smaller than the activated carbon. Any competition between the two carbons may produce a loss of gold from the pregnant leach liquor to the process tailings. This phenomenon is called “preg robbing”. Goldstrike ores come from the Carlin trend, which is known for the occurrence of native carbon (Adams & Burger, 1998; Schmitz, Duyvesteyn, Johnson, Enloe & McMullen, 2001; Tretbar, 2004)."

Jan 1, 2012

By L H. Warren

The types of equipment available for generating a plasma have been reviewed. The efficiency and potential of the plasma generating equipment used in performing extractive metallurgical reactions have been determined. A general classification of the reactions that might be per-formed in a plasma has been proposed. Experimental work done on extractive metallurgical plasma reactions, heat transfer between the plasma and solids, and the quench of the products of plasma reaction has been summarized. From the preliminary results it appears that the high-intensity are or the transpiration-cooled anode plasma torch offer the most promising areas for further research. C ONSIDERABLE world-wide research effort is currently being devoted to the development of processing technologies which employ the new high-temperature generating devices that have appeared over the past few years. The plasma flames produced by these devices offer the potential for subjecting materials to any single gas or mixture of gases at temperatures up to 20,000°K. With these conditions available, many reactions in extractive metallurgy,

Jan 1, 1965

By W. Jomaa, V. Songmene, O. Mechri, Laval Université, P. Bocher, J. Levesque

"A 2D finite element modelling (FEM), based on pure Lagrangian approach, is developed for studying the serrated chip formation during high speed machining (HSM) of 7075-T651 alloy. The solution was achieved using a commercial software package, ABAQUS/Explicit v6.13. The Johnson-Cooke (JC) constitutive equation is used to describe the work material behaviour. Moreover, the JC damage equation is implemented into the FEM to take into account for the shear localization during the serrated chip formation. Modified Coulomb friction model has been used to characterize the sliding/sticking effects on the tool-chip interface with the friction coefficient and shear flow stress determined by force calibration and machining data, respectively. The proposed FEM is validated using experimental data obtained in HSM of 7075-T651. The FEM was able to predict accurately serrated chip morphology. The intensity of chip segmentation was found to increase with cutting speed.INTRODUCTIONHigh speed machining (HSM) is one of the most used processes for manufacturing aircraft parts with aluminum alloys. For aluminum alloys, the use of HSM increases metal removal rate and reduces the formation of built up edges and burrs. However, it was found that serrated (also named segmented or sawtooth chip) and discontinuous chips can be produced during HSM of some high strength aluminum alloys, such as 7075-T6 alloy (Rao & Shin, 2001). Many parameters were found to affect the segmented/discontinuous chip formation during the machining of aluminum alloys.There are two cases in which the serrated chip can forms: the first is when machining hardened materials (Morehead, Huang, & Luo, 2007), and the second, when machining ductile materials with a cutting speed higher than a critical value (Barry & Byrne, 2002). Different theories and models were developed in order to explain the formation mechanism of such kind of chips. According to Astakhov (2006), the segmented chip formation is attributed to variations in stress and plastic deformation states, and resulting temperatures on the cutting zone. Liyao et al. (2013) stated that the segmented chip formation was mainly attributable to adiabatic shear instability/catastrophic strain localization. Others (Vyas & Shaw, 1999) suggest that the fracture/crack propagation mechanism is at the root of chip generation."

Jan 1, 2016

By K. Chattopadhyay

Fluid flows in metallurgical reactors play a vital role on liquid metal cleanliness for both ferrous and non-ferrous metallurgy. Thus, it is absolutely critical to understand different fluid flow mechanisms, and the use of computational methods to model the complex non-isothermal, turbulent, single- and multiphase-flows, has to be appreciated. The present case study emphasizes on controlling the flow of liquid steel in a tundish and enhancing liquid metal cleanliness. CFD modeling was used to build a robust mathematical model, and effects of flow control furniture and non-isothermal conditions were analyzed. The mathematical model was validated against water model experiments. Parameters that were conducive for inclusion removal were identified and implemented in the plant. Some flow control devices could increase inclusion removal to a great extent compared to the existing configurations. In cases, where a hot ladle was poured into a relatively cooler tundish, inclusion removal was better, whereas results were catastrophic in cases where colder liquid was poured from ladle to the tundish. Similar techniques can be applied for other liquid metals including light metals and non-ferrous metals.

Jan 1, 2015

By The Staff

BEFORE going into detail on the subject to be presented, a brief outline of the Company's earl y history would not be out of place. Prospecting and mining on a small scale was started in 1876 on the site of the present open pit at Thetford Mines. The property was purchased from the Crown in 1878 and Johnson's Company was incorporated in 1885. It is owned and operated today by descendants of the original shareholders. Many employees, through their fathers and grandfathers, have service records dating back three generations. The principal asbestos deposit at Thetford Mines is pear-shaped, with surface dimensions of about 2,200 feet in length by 1,300 feet in maximum . width. Its long axis strikes northeast and the dip is nearly vertical, but irregular in detail. It is known to extend to a depth 1,200 feet below the original surface, but its area at that depth has not been determined. Ownership of this deposit is divided among three active Companies: the Asbestos Corporation, Limited; Bell Asbestos Mines, Limited; and John-son's Company. Johnson's Company owns a section about 1,000 feet in length and 500 feet in width, bounded on the northeast by the King mine of the Asbestos Corporation and on the northwest by the Bell pit. On Johnson ground, there was originally a large outcrop o~ asbestos rock which dipped toward the south below overburden. This was mined until recently by open pit, the overburden being stripped off as far southward from the original outcrop as was economically possible. As the. pit was deepened, within side walls maintained at a maximum safe slope, its floor area, of course, became progressively smaller, and eventually the pit would have wedged out against the Bell property line. It became necessary, there-fore, to introduce some other method of mining before production became seriously curtailed by a shrinkage of the pit area.

Jan 1, 1941

By J. J. Denny

IN a preliminary paper (1) it was shown that the addition of small quantities of metallic aluminium powder almost completely inhibited the solubility of siliceous material in the beaker. Six rabbits exposed to quartz dust for six months all showed well developed silicosis. Seven rabbits exposed to quartz dust plus 1 per cent metallic aluminium powder for the same period did not develop silicosis. At that time, we were not in a position to state either the manner in which metallic aluminium reduced the solubility of siliceous material, or, from the animal experiments, whether the aluminium was acting locally or systemically, or for what period after the cessation of dusting it would continue to act. This paper reports the further progress of this investigation. CHEMICAL EXPERIMENTATION The technical details pertaining to the various substances used in the experiments are given in an appendix which is on deposit with the American Documentation Institute, Washington, D.C. For lack of space, it is not printed here. The term 'solubility' is used to indicate the concentration of silica in the solution under the conditions as noted, determined colorimetrically (2), and expressed as parts per million (p.p.m.). The term 'reduction in solubility' indicates the difference between the solubility of the .silica in the presence of the aluminium powder and its solubility in the absence of aluminium powder. It will be noted that the solubility figures for different samples of quartz with no added aluminium vary considerably. The figures do not refer to an equilibrium solubility of silica but to the actual amount of silica dissolved from a given sample in a given time at a given temperature. In view of the fact that quartz dissolves extremely slowly, it is evident that the actual figures in any case will depend upon the surface exposed, i.e., fineness of grinding of the different samples.

Jan 1, 1939

By Jack Young

U. S. Steel Canada Inc.’s Lake Erie Works is the last green field integrated plant to be built in North America. The plant was designed using the best available environmental technology to develop an environmentally friendly production facility. A summary of the technology and measures used in the construction of the plant are summarized in this paper.

Jan 1, 2015

By F. Baczek, S. S. Rocks, D. Chaiko, T. Walters

The atmospheric leaching of chalcopyrite concentrates using acidic ferric sulfate lixiviants is well known to suffer from slow leach kinetics and poor copper recoveries. A number of approaches have been proposed for improving both leach kinetics and recoveries in this system. Many of these, while effective, suffer from high CAPEX and/or OPEX. As many mine sites begin transitioning from heap leaching of copper oxides to processing of primary copper sulfides, cost-efficient leach processes that are compatible with existing SX/EW processes will be needed to maintain existing cathode production. To this end, FLSmidth is exploring process options and reactor technology for the hydrometallurgical processing of primary sulfides. One approach that appears to be highly effective at increasing copper recoveries takes advantage of the enhanced reactivity of transitory, surface-defect structures generated during particle fracture. Significant process efficiencies are gained by matching the rate of grinding to the rate of electrochemical leaching in Mechano-Chemical leach processes. The patent-pending FLSmidth® ROL process uses a Stirred Media Reactor (SMRt reactor) to achieve copper recoveries of 97+% in 6 hours or less. This approach overcomes many of the surface passivation problems that have hindered other atmospheric leach processes. New insights to leach mechanisms are presented.

Jan 1, 2015

By C L. Briend, O&apos

This paper presents the main features of coal mining in Japan, as determined by the author while attending the International Coal Conference in October of 1963. The general economy of the country is considered, and the requirements for coking coal are outlined. Statistics and comments on production and consumption are then given, with accompanying cost figures, and the characteristics of Japanese coal mining are compared with those of Canada. Mining methods and underground transportation are covered, with emphasis on undersea mining. Finally, a description is given of a visit to the Miike colliery, the largest in Japan. I T was my privilege to attend the International Coal Conference held in Tokyo in October, 1963, to meet many prominent members of the Japan Coal Association and to visit one of the major coal fields. This is probably the reason why I was asked to present this review of the coal situation in Japan. In doing so, it must be pointed out that I am not an expert in coal mining, that my

Jan 1, 1965

By Elaine Ellingham, Francis T. Manns

"Abstract -The Orostar and Scadding were two small gold mines owned and operated by Orofino Resources Limited. Conventional statistical treatment indicates an identical arithmetic mean grade of 0.22 oz/T Au for both mineable reserves. Further, the deposits are both shown to have cut weighted average reserve grade of 0.21 oz/T. Orostar mined out at 0.206 oz/T and Scadding at0.156 oz/TAu . The combined exploration and development database contained 1394 fire assays, more than enough for statistical confidence in a normal distribution. Therefore this study was initiated to determine, if possible, why the mill head grades were lower than the averages and to experiment with several methods to determine whether a reliable statistical mill head grade estimation method would emerge. Despite the identical reserve grades, distinct differences in the grade distribution histograms are present. By studying the arithmetic and log-normal grade distribution s, with some attention to South African practices, this paper reports on those differences which may account for the considerable divergence in the mill head grades. Furthermore, this study casts considerable doubt on the industry standard method of cut weighted averages.The global mill head grades of the two deposits have been derived from the arithmetic average grades by graphic means. This precise method of mill head grade prediction, if applied to complex orebodies, could permit selective grade control and result in direct cost savings by allowing the operator to detect false value stopes, benches or levels and emphasize reliable regions of not only gold mines, but also uranium or base metal deposits."

Jan 1, 1992

By Nick Hazen

Many successful actions are required to bring a profitable extractive metallurgical operation into production. Competent process development performed within the project development schedule increases the chances of obtaining project financing and decreases the risk of engineering design errors being built into the commercial plant. The general sequence of steps in process development is well known: technology review, desktop studies, scoping studies, prefeasibility, and so on, with an increasing requirement for experimental evidence as the studies advance. This paper suggests principles for guiding process development work so that the efforts stay on track toward a smooth startup and a profitable commercial operation. It emphasizes closely aligning the research with the corporate goals of the mining company management, understanding the mineralogy and variability in the deposit, and guiding by flowsheet and material balance. Examples of hydrometallurgical process development leading to the early use of solvent extraction in the mining industry are given.

Jan 1, 2014

By W. R. McClelland

GOLD-BEARING ores, representing many types, are found widely distributed through the Province of British Columbia. They range from those which by their nature may be considered as complex, to those whose mineral characteristics are simple. Those in which the gold is associated with metallic sulphides provide particular milling and metallurgical problems, the solution of which involves not only detailed laboratory investigation but also a careful consideration of economic factors. The location of an ore-body may have a deciding influence on the adoption of a method for the metallurgical treatment. Whether the ore should be treated with the object of recovering the gold as bullion or as a shipping concentrate is often dependent on such topographical considerations as the position of the mine at or near tidewater or within a reasonable overland distance of a smelter. British Columbia is fortunate in having the Trail smelter situated in the southern part of the Province, and the smelter at Tacoma, Washington, is accessible for coastwise traffic. Both of these provide a ready market for most types of gold-bearing concentrate. In order that the results obtained by laboratory tests may give a fair indication of what should follow in mill operation, it is essential that the test sample should represent as closely as possible in mineralogical character and in grade the ore that eventually will constitute the feed to the mill. In the early stages of mine development this consideration is sometimes overlooked and samples of a much higher grade than would be representative of run-of-mine ore are submitted. Flotation tests on such a sample of ore high in sulphides may show a low ratio of concentration, bu.t if the actual run-of-mine ore is lower in sulphides the mill operation will reveal a much higher ratio. The recommendations for treatment based on the results of laboratory tests may have been against concentration, when in actual operation this would be the most suitable method of treatment. Recommendations based on laboratory tests are necessarily from the results of work carried out on the sample submitted, modified only by such other economic or topographical information as may be known to the investigator. This paper deals with a few of the gold ores found in the six mining districts of British Columbia and is based on investigations made in the Ore Dressing and Metallurgical Laboratories of the Mines Branch, Department of Mines, Ottawa.

Jan 1, 1937

By W. E. Roscoe

The probability of making an exploration discovery in Canada can be calculated from Derry's (1970) data on exploration expenditures and number of discoveries over the last nineteen years. Considering an average exploration "try" to be $30,000, the probability of a discovery with one try has decreased tenfold from about 0.01 in 1951 to 0.001 in 1969. A plot of these probabilities can be extrapolated to the future, giving a 1969-71 three-year average probability of 0.00096 with 90 per cent confidence limits of 0.00042 and 0.00153. Using this probability, various calculations can be made, such as (1) the probability of making at least one discovery for any given exploration expenditure, (2) the probability of ultimate ruin or survival of the exploration investment process and (3) the expected value of an exploration investment. There is a critical minimum amount per discovery that must be re-invested in exploration, no matter how large the original investment is, for exploration to survive at all in the long run. Currently, this critical minimum is $31,200,000 with 90 per cent confidence limits of $19,600,000 and $71,400,000.

Jan 1, 1971