Search Documents

By Mike Rhodes, Paul Miller, John W. Neale, Vishal Deeplaul, Barrie Hancock, Tony Pinches

The Beaconsfield underground gold mine is one of only a few new Australian gold projects to come into operation in the current climate of low gold prices. Up to 200,000 tonnes per annum of Tasmania Reef ore will be mined and processed over a minimum eight-year life to a depth of 900 metres below surface. The Tasmania Reef is a gold-bearing quartz-carbonate-sulphide vein occupying an old fault structure which transgresses a series of sedimentary beds. The sulphides are predominantly pyrite with lesser arsenopyrite, and also minor copper as chalcopyrite. Drilling to date below this level clearly indicates that the high-grade orebody is open at depth and that the mine life should be extended significantly over time. Since redevelopment of Beaconsfield mine began in the 1980's, extensive exploration has identified a resource of 1.5 million tonnes within a 450 vertical metre zone beneath the old workings, which extended more than 450 metres below the surface. Installation of an 800 litre per second capacity pump station 180 metres below the surface has been critical in overcoming one of the major hurdles experienced during previous operations in the early 1900's. A multi-stage development program, designed to bring the mine into full production, and incorporating construction of the on-site gold treatment plant incorporating bacterial oxidation, has now been completed. Prior to execution of a detailed engineering design of the Mintek-BacTech bacterial oxidation process, a programme of bacterial oxidation testwork was completed to provide a basis for fixing the process design criteria. A flow diagram of the Beaconsfield treatment plant is shown in Figure l. It comprises:

Jan 1, 2000

By G. Norman Owen, Roger E. Scholl, Tor L. Brekke

INTRODUCTION Underground structures are generally regarded to be safer than surface structures during strong seismic motion, except when crossing a causative fault. Recent studies of observed earthquake damage to tunnels generally support this view, although instances of severe damage and, occasionally, collapse are reported. For proposed underground construction of sensitive structures such as nuclear power plants, liquefied natural gas facilities, and nuclear waste repositories, a verification of the seismic response of underground structures will be required.. This paper discusses the stabilization recommendations used in a study of additional costs required to protect tunnels against ground motion caused by earthquakes and underground nuclear explosions (1). The study is a part of the site investigations for possible construction of a nuclear waste repository. The additional costs estimated in the study are not presented here; only the stabilization measures are presented in the present paper. The tunnels, which would constitute the underground facilities of a possible repository, are assumed to be 5.5 m (18 ft) in diameter and to be located at a depth of 600 m (2,000 ft). Three candidate geological materials are considered: argillite (shale), granite, and tuff. Several peak ground accelerations are used: 0.3g, 0.5g, and 0.7g for earthquakes, and 0.5g, 0.7g, and 1.0g for underground nuclear explosions. Potential damage due only to shaking is considered here. This paper does not discuss problems that result from creep or sudden rupture of intersected faults or from ground failures at portals.

Jan 1, 1979

By Hisakazu Matsushita

1. Introduction This is a report on applications of the earth pressure type balanced shield tunneling projects executed under narrow streets on soft alluvial layers in Japan. Japan is a long island country surrounded by the sea. Steep mountain ranges run along the archipelago and numerous rivers originate from the mountains, leaving only limited areas of flat land along the upper and middle reaches of the streams. The majority of cities in Japan are on soft alluvial layers. Alluvium represents an extremely complex soil formation, sections bordering diluvium being characterized by sharp undulations. Various difficulties are therefore encountered in shield tunneling work undertaken in such ground conditions. Particularly, at work sites lying in an unstable, waterbearing layer with high permeability, shield excavation becomes utterly impossible, hampered by large amounts of underground water as well as land collapsing caused by the water. Even when work can somehow be accomplished by using chemical grouting or by lowering ground water level, which require extra expenses and time, undesirable effects such as ground surface settlement are unavoidable in projects undertaken in the past. The newly developed method allows safe and accurate tunnel excavation at normal speed and without giving any adverse effects on buildings above, even under such unstable ground conditions. An outline of this new method was announced at the "International Tunnel Symposium '78" held in Tokyo, and the method has since been employed in a number of tunneling projects in this country. This report provides further data on the new method with reference to some of those projects, explaining how it allows tunnel excavation with

Jan 1, 1979

By John C. Galloway, Heinz G. Leistner

ACKNOWLEDGEMENTS The investigations described in this paper were supported by contracts with the Defense Nuclear Agency (DNA) under direction of Lt. Col. John Galloway, and by Boeing Company research funds under supervision of James Wooster. Other engineers of The Boeing Company who contributed to the work of this investigation were Don Armitstead, John McAvoy, and Tom Day. INTRODUCTION In this paper, we are describing a current concept for placing intercontinental ballistic missiles (ICBMs) in sites deep underground to be used as a strategic Future Secure Reserve Force (FSRF). The objective of such concepts is to utilize soil and rock cover to protect high value strategic weapons from destruction by nuclear attack. The burial deep underground achieves two purposes. First, it imposes a miss distance upon the attacking weapon equal to the depth of burial minus any penetration capability the weapon might have. This tends to offset increasing accuracy of weapon delivery. The other purpose is to absorb as much of the weapon's energy as possible, thus reducing the effects of powerful weapons. This use of soil or rock cover over military facilities began with the development of man's capability to loft projectiles. Until recently, underground military installations, by their nature, performed defensive functions. Since they are not mobile and their weapons in the past had very limited range, an enemy would have to approach them before an engagement could take place. Thus, they were often used to control "choke points" on sea lanes as in the case of Gibraltar or

Jan 1, 1979

By Robert H. Marshall

The application of simulation to production planning at a large, complex open-pit mining operation proved to be challenging and enlightening. The mine is divided into two separate pits and several dump areas which are served by the same truck fleet. The operating system consisted of shovels of two different sizes, wheel loaders, and a fleet of three different truck types moving material from seven source locations to ten dumping sites. The interconnecting haulroad network included many common segments. There were operating constraints unique to the system, such as: traffic rules; manpower limitations; shovel, material-type, and destination priorities and production limitations; and a unique, non-centralized dispatching method for truck distribution. The truck distribution was further constrained by the matching of trucks to shovels, loaders, and destinations by truck type. The gathering and transformation of input data as well as the evaluation of results and validation of the model were also challenging. Despite a high level of sophistication in production reporting, some input data were neither readily available nor backed by field observation. As a result, many innovative techniques had to be used to develop realistic input data and to validate the simulation results. Nevertheless, this case study definitely proved the feasibility of applying computer simulation techniques to short and long range mine planning and budgeting at a large, complex mining operation.

Jan 1, 1982

By Anitava Ghosh

A computer program has been written to simulate ground vibrations induced by multiple- hole surface blasts. The program is an inexpensive and relatively easy to use tool for predicting the principal blast vibration characteristics that determine damage and annoyance potential: peak particle velocity, frequency content and pulse duration. The program generates a complete ground motion history by superposing, at any surface position, the vibrations induced by each individual explosive charge. It requires specification of (hence allows accounting for) the blast geometry, initiation sequence (including random delays), position with respect to blast, pulse characteristics induced by each charge, and propagation laws. A methodology is outlined to determine the necessary variables either on the basis of site investigations (e.g.,velocity, attenuation, single-hole input pulse), or by back-calculation from measured blast vibration records. The latter procedure has been applied to blasts from two coal strip mines. Main difficulties encountered are backcalculating individual input pulses, propagation (especially dispersion) parameters and delays. A normal distribution of delays, based on published results, has been shorn to influence the results and the response of a single degree of freedom structure significantly. Broadening of the wave types included, improved input pulse determination and propagation laws, and more detailed verifications with field results are required in order to make the program more directly applicable to practical situations.

Jan 1, 1986

By A. F. Fossum, D. E. Munson

The U. S. Department of Energy is constructing and operating the Waste Isolation Pilot Plant (WIPP), a research and development facility near Carlsbad, New Mexico, to determine whether or not defense-generated high-level radioactive waste can be stored safely in bedded salt. The goal of the WIPP modeling program is to develop the capability to predict room responses from one site to another without a priori knowledge of the actual room responses. Data from one of the early WIPP excavations, called the South Drift, have already been used to form an initial evaluation of computational models for predicting room closures as a result of salt creep [Morgan et al., 19851. In that study, a significant unresolved discrepancy existed between predicted and measured room closures. It was suggested that future studies address alternate forms of the constitutive law. In this paper, an alternate form of the creep model for salt is used that is founded upon the deformation- mechanism map for the micromechanical deformation processes. This model embodies both steady-state and transient creep. Also, quasi-static plasticity is incorporated into the complete constitutive model for salt. The conclusion is drawn that the combination of the mechanistic creep model, plasticity, and flow potential can approximate the late time South Drift deformation. Further improvement of the model fit of plasticity in the future is expected to further improve the simulation.

Jan 1, 1986

By Taneomi Harada

Mine drainage has high acidity and sometimes contains more than the allowable concentration of ionized iron. In such a case, mine drainage is neutralized with calcium carbonate and calcium hydroxide to separate precipitates, such as the iron hydroxide and gypsum generated. Currently, most of these precipitates are not utilized and are accumulated in tailing dams. As a result, the service life of the tailing dams is reduced. This becomes a matter of concern, since securing sites for such dams is difficult. A most effective means of solving this problem would be to promote utilization of these neutralized precipitates. This paper reports on the results of studies on neutralized precipitates produced at the old Matsuo Mine (Iwate Prefecture), which has the largest neutralization treatment facility in Japan. As a result of the studies, the following was proposed regarding application of neutralized precipitates. Utilization as ferrite: Mix ferrous hydroxide and ferric hydroxide in water to synthesize magnetite-like ferrite, to be used in the manufacture of magnetic markers for a mobility support system for blind pedestrians, or in producing magnetic fluids for sink-and-float separation of nonmagnetic metals and nonmetals. Utilization as hematite: Bake ferric hydroxide to produce hematite, thereby extracting metallic iron for paint pigment as well as for the manufacture of ironware by local industry. Production of aluminum sulfate: Precipitate aluminum ions from water and add sulfuric acid to produce aluminum sulfate.

Jan 1, 1995

By L. H. Munson, E. H. Carbaugh, D. E. Hadlock, L. F. Munson, R. L. Gilchrist

As a result of the Three Mile Accident and because of evidence indicating radiation protection problems, the U.S Nuclear Regulatory Commission (USNRC) undertook a major effort, with the assistance of the Pacific Northwest Laboratory (PNL), to analyze radiation protection programs at 47 commercially operated nuclear power plants. This effort, the health physics appraisal program (HPAP), using a modified management oversite and risk tree analytical logic methodology (MORT) which consisted of analytical trees with applicable questions for each tree, was subsequently extended to include USNRC licensed uranium mills. In the uranium mill appraisal, a team of four senior radiation safety professionals spent a week at each mill evaluating the total health physics program. Prior to the HPAP, the USNRC inspection efforts were designed to determine if the licensees were fulfilling the requirements of the code of federal regulations and the mills source material license. The HPAP, however, was designed and structured to facilitate an integrated look at the total program. It is also directed into areas for which explicit NRC regulatory requirements may not currently exist. The latitude of the HPAP was designed to allow professional judgement in the evaluation of program adequacy, because merely meeting the explicit regulatory requirements does not necessarily ensure an adequate and effective health physics program. The results of the first eight site visits and the generic health physics problems identified within the uranium milling industry will be identified in this paper.

Jan 1, 1981

By R. Hiebert, M. Canty, S. Beckman

An innovative biological process is described for the treatment of cyanide-, metals- and nitrate-contaminated mine process water. The technology was tested for its ability to detoxify cyanide and nitrate and to immobilize metals in wastewater from agitation cyanide leaching. A pilot-scale demonstration is described in which a pilot plant was constructed to demonstrate the technology on a mine process-waste stream at a mine in Nevada. The demonstration was performed jointly under the Mine Waste Technology Program (MWTP), funded by the US Environmental Protection Agency (EPA) and jointly administered by the US De¬partment of Energy's (DOE) Western Environmental Technology Office (WETO) under Interagency Agree¬ment Number DW89938513-01-0. The Superfund Innovative Technology Evaluation (SITE) demonstration program was also involved in the project. MSE Technology Applications Inc. (MSE), Butte, MT, was the contractor responsible for conducting the project, and Pintail Systems Inc., Aurora, CO, was the technology provider. The pilot-scale unit was field-tested at Echo Bay's McCoy/Cove Mine southwest of Battle Mountain, NV. The biotreatment process was considered successful in destroying cyanide in the mine process water. The process was also determined to be effective in removing metals. The pH was consistently neutralized and nitrates were successfully removed from the mine process water. From the results of these pilot-scale tests, it was concluded that the biotreatment process potentially of¬fers an innovative, cost-effective alternative for the treatment of mining wastewaters.

Jan 1, 2000

By L. L. Gagné

The Churchill Falls Development will eventually be the largest source of hydroelectric power in North America. Churchill Falls was discovered in 1839, but until recent years it was not practical to begin development of this site to tap the 7 million horsepower available. This $1 billion project is located in Labrador, 700 miles northeast of Montreal and 650 miles northwest of St. Johns, Nfld. The construction will divert the Churchill River 5 miles upstream from the 245 foot Churchill Falls. Rapids above and below the Falls, together with the Falls proper, give a natural head of 1,040 feet. In contrast to the basic simplicity of the surface installations, the powerhouse labyrinth is astounding in size and complexity. The largest in the world, it consists of three major chambers - the powerhouse, 972 feet long by 81 feet wide and 154 feet high; the surge chamber, 763 feet long, 40 feet to 64 feet wide and 148 feet high; and the transformer gallery, 856 feet long by 50 feet wide and 39 feet high. Other major features include eleven inclined penstocks, each 1200 feet long and 20 feet in finished diameter; eleven draft tubes averaging 37 feet in finished diameter and 162 feet long; six vertical cable shafts each an average of 865 feet in length; a series of eleven short bus tunnels linking the powerhouse and the transformer gallery; a vertical power-

Jan 1, 1997

By Mike Horn, Keith Meade, Marvin L. Smallwood

Technological changes in programmable logic controllers (PLC)'s and the need to improve the architecture of Mine Wide Monitoring Systems (MWMS) has resulted in the design of a PLC based system at the Virginia Division of Island Creek Coal Company. The system which is presently in the installation phase, is a joint effort of Island Creek Coal Company, Westinghouse Electric Supply Company and Mining Controls Incorporated. The system uses an ethernet based network for graphic display of system data operating under the Genesis software package. Telemetry for the system utilizes the Seimens/Westinghouse L1 network operating over two twisted pairs. Remote telemetry uses fiber optic links and modems operating over standard telephone lines. 500 and 2000 series PLC's provide distributed data processing for the system with hierarchial processing operating under the Genesis software on the ethernet network for individual mine site monitoring along with the remotely located division office monitoring. System control and data acquisition is provided for underground MWMS operations and on the surface for a vast methane gathering system that is used for degasification of the mines and collection of pure methane for sale to the Columbia Gas Company as natural gas. The inability of industrial MWMS companies to keep up with the vast changes in technology, along with economic considerations associated with expanding the existing MWMS created the need for the development of the PLC based system to replace the older industrial monitoring systems.

Jan 1, 1993

By R. C. Bryan, D. B. Jamison

This paper describes a procedure for minimizing the operational costs associated with blending sodium in coal at a surface mine in the Powder River Basin. Mine site blending is performed by adjusting daily production rates for high- and low-sodium pits. These adjustments are designed to produce a consistent sodium value called the blending target. The mine's contractual limit for sodium is sufficiently close to the field average value that any decrease in the sodium blending target may result in an opportunity cost, if the number of potentially minable tons is reduced. Conversely, any increase in the blending target may result in a higher sampling cost if more information is required to keep the blend within contractual limits. Blending parameters were defined using a geostatistical block model of sodium content that was based on analyses of hundreds of in-pit sample holes. Variograms for these data were used to compute the marginal costs of opportunity and sampling for a series of hypothetical in-pit drilling patterns. These marginal costs provided a basis for selecting optimum values for key parameters such as the blending target, production variance and in-pit sampling density. The benefit of implementing these optimized parameter values is that operational costs of sodium blending will be minimized over the long-term. At the mine where this procedure was developed, each dollar spent to increase the sampling density to the optimum value was shown to generate a $10 savings in opportunity cost.

Jan 1, 1991

By Joseph M. Denk, John N. Baran, William J. Francart

Filling or sealing shafts of underground coal mines is required when the mine is declared inactive by the operator, permanently closed or abandoned for a period of time greater than 90 days. Although shaft filling requires the use of incombustible materials for the first fifty feet of the shaft, a sparking potential may exist which has been reported to be the cause in at least one shaft-filling explosion. This paper outlines the method used at the explosion site to monitor mine gases within the shaft to assure the safety of the workers involved in the remainder of the shaft-filling operations. Gases which were monitored include methane, oxygen, carbon monoxide and carbon dioxide. Continuous sampling was conducted twenty-four hours per day to determine the methane liberation and accumulation of gases within the shaft. Once gas concentrations were evaluated, the need for ventilation in the shaft was obvious because methane accumulations within the shaft were in the explosive range. Several methods to ventilate the shaft were explored. The most practical seemed to be the dilution of gas concentrations with compressed air to inject a quantity of fresh air into the shaft. But, when the compressed air was stopped, a buildup of an explosive mixture reoccurred. The pattern of gas accumulation was then studied to find the correct combination of ventilation and shaft-filling time periods which would a1 low for the greatest reduction of the potential for an explosion. Gas concentration sampling continued during the remainder of shaft-filling operations at this shaft and four others at the same mine. In conclusion, this paper illustrates some of the problems which are often overlooked in a shaft-filling operation. If addressed, the work can be done in a safe and feasible manner.

Jan 1, 1987

By William G. Doepken

After 15 years of production, 91 Mt (100 million st) of ore mined and nearly 227 kt (500 million lb) of molybdenum produced, Climax Molybdenum Co.'s Henderson Mine and Mill are being modernized as a new mining level is brought on line. The $40 million investment in mine development and plant modernization positions the Henderson complex as one of the largest, low-cost primary molybdenum producers for the next 15 years. Henderson history The Henderson Mine and Mill facilities are located on the east and west flanks of the Continental Divide about 80 km (50 miles) west of Denver, CO. The underground mine and surface mill sites are linked by 16 km (10 mile) of railroad tunnel and 8 km (5 mile) of surface trackage. The mine, railroad and mill were built between 1968 and 1976 at a cost of $500 million. Each has operated at various levels of production over the past 15 years. The Henderson Mine was originally developed using a highly mechanized, panel caving mining system. Over the past 10 years, mining methods, equipment and railroad operations have been improved to position Henderson as one of the most productive and lowest cost underground mining operations. At the same time, the mill and concentrator facilities were upgraded to reduce costs and improve product quality. During this time, manpower was reduced from 2000 to 560 employees. These 560 people increased productivity to 54 t (60 st) per total manshift. They reduced operating costs by 50%. And they dramatically improved safety performance. However, as the 1990s approached, the modernization of the Henderson mining and milling complex and the development of the new 7700 mining level became the primary goals to guide Henderson into the 21st century.

Jan 1, 1991

By Larry Whittle

Gold milling activities generate waste streams containing dissolved metals and cyanide, among other contaminants, that require some form of treatment prior to discharging to the environment. To date, this treatment has involved the destruction of cyanide through natural degradation, chemical oxidation, or a combination of both followed by the precipitation of metal hydroxides. Although these processes have been proven to be capable of achieving. regulatory levels for metals and cyanide, they often generate significant levels of cyanate and, at times, ammonia, that may be toxic to rainbow trout and thus undesirable for regulatory compliance. Tallon Metal Technologies Inc. (Tallon) has developed Vitrokele™, a chelating resin that has the ability to capture metals (including gold), both total and weak acid dissociable cyanide, as well as thiocyanate from both slurries and solutions. The loaded resin is eluted and returned to the recovery circuit while metals and cyanide are recovered from the eluent stream. This process was demonstrated at pilot scale at B.P. Resources' Hope Brook Gold Mine in Newfoundland, and more recently at Canamax's Bell Creek Mine near Timmins, Ontario. The results from these pilot programs showed metal and cyanide recoveries of 99% or more with the concentration of cyanide and metals in the effluent reduced to levels with minimal or no toxicity to rainbow trout. Furthermore, neither cyanate nor ammonia were generated from the process. The loaded resin was effectively stripped and re-introduced to the recovery circuit; cyanide was captured in the eluent stream and made available for recycling to the mill leaching circuit; and metals were captured for re-use, sale or disposal. This paper summarizes the results obtained from the pilot tests at the Bell Creek and Hope Brook Gold mine sites.

Jan 1, 1992

By Ronald I. Fuller

Core Laboratories, a division of Western Atlas International, maintains laboratories in all energy-producing areas of the United States, as well as in many foreign countries. Central to laboratory operations has been the incorporation of computers and computer software. Core has developed a mu1tiuser Laboratory Information Management System (LIMS) , which is currently installed in numerous company sites in the U.S., and is now undergoing installation in Canada. In addition, Core has provided custom soft ware to contract laboratories which Core operates on behalf of mining firms. The software development was done under the direction of the author in Denver, Colorado, and Casper, Wyoming. The intent of this paper is to pass some of the practical experience gained by our efforts on to those who wish to utilize computers more fully in the laboratory setting. The product of analytical laboratories is numbers. Nothing else comes from our work. We deal in information about samples. It is then reasonable to assume that the computer would be central to a laboratory operation. The hard part is to initially define what kind of computer the lab operation needs. The choices today can be very complex, and almost every hardware salesman is full of bad advice. Even the people in your own information services department may hold divided opinions. Since the advent of the personal computer, we have lived with a polarized data processing community. The PC boys consider their machines equal to any challenge, while the "save the mainframe" crowd view the PCs as limited toys that are only good for the things that clutter up a real computer. Management tends to lean toward whatever costs the least.

Jan 1, 1989

By David E. Thompson, Daniel J. Dobbels

INTRODUCTION The planning process for projects requiring construction of tunnels in urban environments can be highly complex and involves interaction with professionals of many disciplines. Typically the initial step in the planning process is to establish basic design criteria for the tunnel or tunnel system consistent with its intended purpose. Such criteria might include acceptable tunnel geometry, minimum and maximum slope or other associated criteria. Ideally, once the basic criteria have been established, the next step in the process might include establishing technically feasible horizontal and vertical alignment and shaft siting alternatives and developing "ball park" construction and operational cost estimates for the alternatives. Comparisons can then be made regarding the relative technical and economic merits of the alternatives and the most favorable alignment(s) are selected for further study or preliminary design. Typically the last and perhaps the most important task that is conducted during the planning stage includes identifying issues and potential problems to be addressed during the design and construction stages of the project. Many issues warrant consideration during the planning phase of a tunneling project. For the purposes of this paper, these issues can be divided into two broad categories: technical and non-technical. Important technical issues include, among others, general design criteria, geotechnical and geoenvironmental issues, and constructibility issues. Important non-technical issues include, among others, right-of-way and easement related considerations, project scheduling constraints, both short and long term environmental impacts and overall cost/benefit aspects of the project. With respect to influence on the planning process, these two groups of issues often cannot be separated completely. For urban tunneling projects, however, it is most often the case that the non-technical

Jan 1, 1991

By Paul C. Jones

Summitville is an old mining district located south of Wolf Creek Pass in the southern San Juan Mountains of Colorado at an elevation higher than 3500 m (11,500 ft). The Summitville mine site is about 40 km (25 miles) southwest of Del Norte. The current mine, developed by Galactic Resources Ltd. and its subsidiaries in the mid-1980s, is on the north facing side of South Mountain. The area is drained by Cropsy Creek to the east and Wightman Fork to the north, both tributaries to the Alamosa River. Mining in the Summitville area began in 1870 when James Wightman discovered placer gold on what is now known as Wightman Fork of the Alamosa River. The first vein-type deposits were located in 1873 on South Mountain near the current Summitville Mine. Mining began in the district in 1875 and continued sporadically through 1942. Major mining episodes occurred from 1875 to 1894 and from 1926 to 1942. Total gold production from the mining district through 1949 totaled 7.5 t (240,000 oz). An additional 7.7 t (249,000 oz) were produced during Galactic's tenure. Natural degradation of the outcropping sulfide-rich veins in the area and the early mining activity, including development of the Reynolds, Dexter and Iowa drainage tunnels in the late 1890s, have polluted the streams draining the area with heavy metals and acidic water. Names of the various tributaries to Wightman Fork, such as Iron, Alum and Bitter Creek, testify to this natural pollution. This degradation has reduced, or killed, aquatic life in several area creeks, including Wightman Fork, for many years before recent mining activity.

Jan 1, 1993

By Virgil R. Huff, Ihor Havryluk

P. T. Pacific Nikkel Indonesia (PTPNI) was incorporated in Jakarta, Indonesia in February, 1969 by a group of Dutch and North American companies. At the same time, a Contract of Work with the Government of the Republic of Indonesia was signed, granting Pacific Nikkel all the necessary licenses and permits to explore and develop all nonradioactive minerals in two separate areas in Irian Jaya, eastern Indonesia. Nickel mineralization occurrences were confirmed by Dutch geologists in the two areas in 1952 and 1955, however, detailed exploration began in June 1969 after the Contract of Work was signed. Since that time, numerous studies and investigations have been conducted to determine the feasibility of producing metallic nickel in Irian Jaya. Four engineering studies, two bulk sample tests, an oceanographic survey, and a preliminary site investigation indicated that construction and operation of a nominal 100 million pounds per year metallic nickel plant on Gag Island were technically feasible. The fourfold increase in the price of oil in late 1973 without a corresponding adjustment in the price of nickel necessitated a reevaluation of the project, the results of which showed that the project required other conditions to be viable. Subsequently, analysis of: the future projected nickel supply-demand and cost-price relationships, the economics of treating a higher grade feed, and participation by the Government of Indonesia, indicate that the project will be viable. Therefore, planning of the Gag Island Nickel Laterite Project is continuing with the objective of commencing production to supply the market in the 1983-1984 time period.

Jan 1, 1979