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By Robin Sheremeta

Fording Greenhills first acquired GPS (Global Positioning System) technology with the commissioning of a GPS-based dispatch system in December 1994. The second exposure to satellite technology came with the conversion of the conventional optical survey system to a high-resolution GPS system in June 1995. In September 1995,a GPS-based grade control system was tested on the largest shovel (Marion 301 — 58 cubic yard).In January 1996, the system was added to all of the cable shovels (2 P&H 2800s). All three applications of GPS at Greenhills are fully operational and producing positive results. This paper will focus on the practical application of GPS in a mining environment and the effect that GPS technology has had on the Greenhills Mine.

Jan 1, 1996

By H. Thomasson

This paper will deal with on-site maintenance welding using the stick electrode, electric arc process. It is primarily concerned with the underlying principles, the application of which, or the lack of such application, governs the success or failure of the operation. It will discuss first the base metal or item to be welded, including the field identification of its weld-ability and the determination of the procedures to be followed. Second, it will outline heat effects and the interrelation between heat applied as part of a welding operation and heat deliberately applied as part of a heat treating cycle, stressing the fact that in welding the same basic principles are effective. The third consideration will be weld metal and its control of both composition and properties. Last, but not least, distortion, shrinkage and residual stress will be considered and practical means for minimizing their adverse effects outlined.

Jan 1, 1967

By C. O. Swanson

Introduction It is thirty-odd years since I first entered the mining field by working underground at Anyox, which makes 1t clear that I can qualify as one of the older generation and claim the privilege of dealing in generalities and broad impressions. In this position I find it interesting to re~ view the salient changes that have taken place during the past quarter-century and indulge in some speculations concerning the future, with the hope that my comments may be of value to others engaged in the field of mining geology. As indicated by the title, the treatment is a perspective from a single viewpoint rather than an attempt to give a complete and impartial analysis. This plan, while deficient in some respects, has the advantage of being more specific than one based on .a. compilation of opinions. An additional advantage is brevity, which would be difficult to obtain on a subject of this scope if it were viewed from all angles. In conformity with the general plan, specific references to the literature have been avoided as much as possible, although a number of publications of general nature are listed at the end of the paper. This procedure is intended to give credit to the sources used without making them in any way responsible for the interpretation. The starting point for the discussion is the situation as it existed twenty-five years ago, when, as a recent graduate, I first had a fairly complete picture of it. However there is one impression of an earlier; stage that seems worth mentioning. In one of my first courses in geology the statement was made that some of the leading authorities of the previous generation, who guided geological thought at about the beginning of the century, were inclined to question the value of an association with mining. This attitude was no doubt exceptional, and certainly it was not adopted by the students who laid the groundwork for mining geology in North America. But its existence even in a limited circle is significant m showing how far the application of geology has advanced as the result of the investigations started during the first part of this century.

Jan 1, 1949

By A. Ghahreman, M. Oliazadeh

"Heap leaching is an attractive process for low grade deposits where the metal content of ore does not justify the high cost of milling and agitated leaching. In general, the heap leaching capital cost is low, construction is rapid, and production costs are low. The primary disadvantage of heap leaching is low recoveries (typically 65% of agitated leach recovery); thus, recovery improvements could convert more lower-grade deposits into minable reserves. This will also allow to process primary sulfide ores and result in a dramatic expansion of the technology, as ~80% of total ore types are sulfidic in nature. The old gold operations tailings are another massive source of low-grade gold material that can be retreated by the heap leach process. The major parameters affecting the recovery rates are ore characteristics (mineralogy, particles size of metal and host minerals, ore permeability), and operational conditions (segregation of ore, compaction, leach cycle time, lift height, and solution application rates). The design of a percolation leach process is based on a limited number of coarse ore bottle roll and/or column tests under ideal conditions. The economics of the projects and engineering design of the process facilities are developed based on the bench scale test work results and the application of the conventional engineering scale up factors. This paper will deal with the parameters affecting the HL efficiencies and focus on the potential improvement of gold heap leach recoveries. This would include design of heap leach operation and evaluation of processes such as fine crushing and bioleaching.INTRODUCTION Gold heap leaching is a hydrometallurgical process designed to treat amenable low-grade gold ores that contain typically 0.5 to 1.5 g/t gold (Marsden and House, 2006; Wong Wai Leong and Mujumdar, 2010). Ore is stacked by various types of equipment on an impermeable barrier, and a sodium cyanide solution is applied to the surface of the stacked ore. Gold, silver, and other metals contained in the ore are dissolved to various degrees by the cyanide application, as it percolates downward through the stack of the ore. The pregnant leach solution (PLS) is then collected at the bottom of the heap. The PLS is then sent to the gold recovery plant where the metals are extracted. The barren leach solution (BLS) is then reapplied to the top of the pad. Ore is placed on a pad or previously leached lift by various means, including ramp conveyor belts, radial-arm and self-leveling stackers, and trucks. Once trucks are used to construct the pads, the pad can be compacted and hence the pad should be graded and ripped or scarified (roughened up) with wheeled or tracked equipment to produce shallow cuts to increase surface area exposure to the leachate."

Jan 1, 2019

By A. Ouellette, E. Nilsson

"Preventative maintenance is a burden for equipment users but a demand from the machine suppliers to ensure performance. Machine availability depends on preventative maintenance being followed.Mining equipment is becoming more and more sophisticated and productive, yet less and less time is available for preventative maintenance. Manufacturers invest in reducing costs, simplifying operating requirements, and lowering maintenance requirements, but it is the users who must invest more heavily in the advanced maintenance systems to keep the units operating.IntroductionPreventative maintenance has been, and still is a key factor in avoiding disturbances in production due to equipment downtime. Manufacturers ask for it in extensive maintenance schedules, check lists, programs, etc. often with a ""threat"" that, if not performed, the machine guarantee will not be valid. Modern mining and construction machinery has become sophisticated, like all other machinery, with elaborate hydraulic, electric and electronic systems and computerized controllers. Maintenance organizations within the mining industry have grown to heavy cost centres just to keep up the availability of the equipment.It is difficult for machine manufacturers to have maintenance programs that suit every user. International suppliers have to deal with different cultures, education levels, environments, organizations, etc. Maintenance programs recommended by manufacturers often do not meet some user's needs while they are ""overkilling"" to others. Preventative maintenance schemes recommendations of what to do, in what frequency, etc.) usually fit mechanical components in the equipment, e.g. wear measurements, crack indications, lubrication, oil changes, etc. But how does one perform preventative maintenance on huge hydraulic systems, electrical and electronic systems and computers? Failures in these systems usually occur without any warning and are more or less impossible to predict. Another difficulty in creating effective preventative maintenance programs for these kinds of systems is the relatively low volume of mining and construction equipment that is produced per year. For example, although Atlas Copco is one of the largest manufacturers in the world of underground blast hole drilling machines, the company still does not produce more than a few hundred drilling jumbos per year. These are made in more than 10 different models, with different systems and components, and very often are custom adapted to the end user's requirements."

Jan 1, 1992

By H. W. Parsons

Several low-temperature, dry chlorination processes for the treatment of sulphide minerals are reviewed, in a chronological order. These processes include the following: the Swinburne-Ashcroft, Baker-Burwell, Maim, Comstock-Wescott (Aldermac) and the Mitterburg Mining Process. Dry chlorination investigations at the Canadian Mines Branch (now CANMET) and the U.S. Bureau of Mines are discussed, as is a proposed process by the South Africa National Institute for Metallurgy. The techniques used in the process are discussed, as are the shortcomings, problems and failures of the methods.

Jan 1, 1978

By H. S. Price, F. N. Kissell, R. C. McCulloch, J. C. Edwards

"The methane em1ss10n from deep coalbeds which are actively mined is a serious problem facing the mining industry today. Pinpointing the source of methane and predicting the emission of this gas from these coalbeds is necessary if preventive techniques are to be effectively used to control methane emission. In general, because most coalbeds have water associated with them, the system to be studied may be either single-phase (methane gas) or two-phase (methane and water). Because coal mine geometry is complex and the fluids have variable properties as functions of pressure and methane concentration, the differential equations describing the flow of methane and water are not amenable to analytic solution, but must be solved numerically using high-speed computers. This paper presents the development of such a complex mathematical model along with some preliminary applications of the model to methane emission from one- and two-dimensional coalbeds with and without water present."

Jan 1, 1973

By Jian Li, Robbie McDonald, David Robinson

"The pressure oxidation of sulfide minerals at temperatures above 200°C enables the extraction of base metals, improves the extractability of gold from refractory ores, enables solubilisation of PGEs and can be used to hydrothermally upgrade base metal-containing feeds. Fundamental studies reveal that the solution chemistry (and mineralogy of the solids) during pressure oxidation can be manipulated with outcomes that include (1) increased leaching rates, (2) lower oxygen requirements and (3) the formation of chemically more stable residues. This paper presents examples describing how these outcomes might be achieved based upon fundamental investigations.INTRODUCTION The application of pressure oxidation to the processing of gold ores and concentrates dates back several decades and continues to be the process of choice at operations such as Pueblo Viejo (pyritic gold) which host the largest autoclave of its kind in the world (Barrick Gold Corporation, 2016). Commercial application to the processing of base metals and PGMs resides with long established processes such as the Sherritt process, ore specific applications such as by Noril’sk, at Sepon etc. or has not proceeded to date beyond pilot scale testing (e.g. Phelps Dodge, CESL, Activox, Platsol). Recently there has been significant interest in hydrothermal upgrading options for concentrates including the NONOX and Toowong processes (Rohner et al., 2016; Weidenbach et al., 2016). The latter options suggest directions where sound knowledge of the underlying fundamentals enables novel outcomes and efficiencies to be obtained. It comes as no surprise that investigations similar to those underpinning these developing processes can be traced back several decades. It is not the subject of this paper to provide a historical perspective of the relevant autoclave chemistries but rather, to present some potential opportunities suggested by studies in our laboratories. Topics to be discussed in this paper include (1) control of metal extraction rates, (2) control of iron-residue composition and (3) control of sulfur oxidation and hence acid generation and oxygen requirements. The work described will focus upon the pressure oxidation of a nickel concentrate."

Jan 1, 2017

By Claudio Acuña, Sergio Romo, Gerardo Fuentes

The leaching kinetics of a zinc concentrate in autoclave reactors were studied. A sample of concentrate from Bolivia, with typical mineralogical characteristics of the Andes region, was used. A concentrate containing 49% zinc and 145 ppm of silver from Minera Viacha was characterized chemically and mineralogically (atomic absorption, X-ray diffraction, and SEM microscopy) and tested in bench scale reactors. Two types of autoclave batch reactors were used at 40 bars of oxygen pressure and three levels of temperature (150°C, 200°C and 250°C). The solid to solution leaching ratio was 1:10 (10% sulphuric acid concentration). The effect of the particle size of the concentrate on the leaching kinetics was studied (P80: 145 and 45 µm). Iron from the leaching solution was removed by precipitation by increasing the pH in order to generate a clean solution for zinc electrowinning. The zinc solution was used to evaluate the feasibility of cathode production at the laboratory scale. Zinc extractions with higher liberation (P80 = 45 µm) reached up to 98%. Ground concentrate with finer sizes resulted in agglomeration and the use of dispersing agents did not improve slurry mixing. The leaching solution contained 55 g/L zinc and 7 g/L iron; it was purified by precipitating iron. The precipitation was evaluated using sodium hydroxide and ammonium hydroxide. In the first case, a colloidal suspension of ferric salts was formed while in the second case, different iron compounds were precipitated. The precipitate obtained with ammonium hydroxide had better filtering properties. Electrowinning was carried out using two types of cathodes (stainless steel and aluminium) and solutions purified with ammonium hydroxide. Zinc cathodes formed on stainless steel presented a better physical quality than those formed on aluminium.

Jan 1, 2015

By Atul Bhatnagar, M. P. Sinha, Md Zahid Ahmad, Pallav Garg, Sanjay Kumar Singh, Shashi Ranjan, An Ecolab Company Nalco Water

"Froth Flotation is undoubtedly one of the most critical processes in coking coal washing plants. This work was carried out at Bhelatand Coal Preparation Plant of Tata Steel was with an objective of cost optimization in fine coal processing. The sources of raw coal for the plant include coal from underground mines of Jharia coalfield and procured open-cast raw coal. Coal from different sources vary in quality and possess different floatability characteristics.Synthetic collector is being used in plant as a flotation reagent. An alternate collector with new chemistry was developed for reducing total treatment cost without compromising product yield and quality. A series of laboratory tests were conducted to assess the performance of various sources of raw coal and plant scale trial was started. At first, the new generation coal collector was entirely substituted with the existing collector in the laboratory scale. However the plant scale trial data was not in accordance with laboratory results and indicated inferior flotation performanceThe issue was studied and data based conclusions were drawn that the new generation collector aids faster and uncontrollable kinetics. A decision was taken for co-dosing of the synthetic and new collector for the second phase of the trial. A detailed laboratory analysis was done again and few dosing ratios that predicted optimum results were selected for plant trial. The dosing ratio was optimised as per flotation yield and product ashes during the plant trial. The results showed significant improvement from the first phase and optimum dosing rates were decided based on plant observations and data collection. The influence of various process indicators including water quality, feed and product ashes and process yield was studied during all the trials and promising results were established. The co-dosing of both the collectors conferred cost advantage and enabled to achieve superior performance."

Jan 1, 2016

By Xing-Liang Sun, Xian-Min Han, Zheng-Guo Zhu

The study on the material properties of frozen soils in China was being developed quickly in the past decades of years, because of the increase of the engineering constructed in frozen soil regions on the Qinghai–Tibet Plateau, and numerous research results were achieved mainly about strength and deformation behaviour and constitutive models of frozen soils. Studies have shown that the deformation procedure of frozen soils is irreversible; therefore, it is more appropriate to research mechanical properties of frozen soils by means of damage mechanics theory. In this paper, an elasto-viscoplastic anisotropic damage model is presented by introduction of Perzyna viscoplastic equation into analyzing the deformation of frozen soil. In addition, an anisotropic damage evolution equation is obtained by means of extending non-viscous damage to viscous damage. Triaxial tests at different strain rates are chosen to illustrate the application of this model, and good agreement between experimental data and numerically simulated results is obtained. The calculated results indicate that, under the same conditions, the damage at higher strain rate is less than that at low one. So the phenomena are explained from damage mechanics that the frozen soil has larger elastic modulus and shear strength at higher strain rates, and explained from mechanism that the emergence and development of micro-cracks in the body of frozen soil can be to some extent retarded at higher strain rates.

Jan 1, 2015

By Stanley G. Butcher

Predictions of coal cleaning plant performance from the washability data are traditionally used at the conceptual design stage of a coal preparation plant to confirm process selection. The development of computer programs which simulate the operation of a plant facilitates the optimization of product yield and quality, and ultimately proceeds. It is shown that the optimum is sensitive to changes in mine operations and market price structure. A computerized review of operations is thus recommended as an on-going activity .

Jan 1, 1979

By J. A. González-Anaya, F. Nava-Alonso, O. Alonso-González, F. Alvarado-Hernandez, A. Uribe-Salas, C. Jimenez-Velasco

"One of the most common hydrometallurgical methods for precious metal extraction is cyanidation. The effluents of this process may contain relatively high concentrations of copper, zinc and iron, which react with free cyanide to form complexes, adversely affecting the efficiency and the economy of the process.This preliminary work studies the use of the solvent extraction technique to remove copper, zinc and iron cyanide complexes from a synthetic solution similar to that of gold mill effluents, in order to allow the recycling of the solution back to the process. For the extraction of these anions (Cu(CN)2 -, Cu(CN)3 2-, Cu(CN)4 3-, Zn(CN)4 2- and Fe(CN)6 3-), trioctyl methyl ammonium chloride (Aliquat 336) was studied as extractant, using nonylphenol as modifier in the organic phase (iso-octane). The experimental results showed that for a synthetic solution containing 450 mg/L total cyanide, 160 mg/L copper, 50 mg/L zinc and 51 mg/L iron, it is possible to extract the 96% of copper, 91% of zinc and 75% of iron when using 0.011 mol/L of Aliquat 336 (organic/aqueous volume ratio (O/A) =1) in the pH range of 9-10."

Jan 1, 2014

By Y. J. Yu, C. D. Zhang, Y. S. Zhao, W. G. Liang, Y. D. Geng, J. L. Bi

"In this study, the coefficient of thermal expansion (CTE) and thermal conductivity (TC) of shale in two perpendicular directions, vertical and parallel to the bedding of the rock, are firstly measured by experiment. The experimental results show that the CTE of the shale in the vertical direction is 1.69 times as much as that in the parallel direction, while the TC in the parallel direction is 1.83 times larger than that of the vertical direction. Based on the no initial strain assumptions, numerical simulations for the thermal cracking in shale are carried out with the obtained coefficients. Using finite element method and thermal-mechanical coupling theory, two fracture mechanical parameters, KI and J-integral of the shale are also analyzed for the shale thermal fracturing. The simulation results show that both KI and J-integral reach the maximum when the fracturing angle equals to 0° in the shale, namely parallel to the bedding direciton. It is also found that the two fracture parameters decrease with the fracturing angle increasing. Additionally, the thermal fracturing effect of the shale is evaluated under a given scenario. The study is significant for shale oil or gas recovery by in situ pyrolyzing method.INTRODUCTIONOil shale is regarded as a kind of unconventional resource that can contribute to production of shale oil and hydrocarbon gases (Rahm & Dianne, 2011). As is known that there is a large deposit of oil shale in China, and present technology for exploiting oil shale still concentrates on open-pit mining, obtaining shale oil by retorting shale on the ground (Li, Tang, Xue, Zheng, & Du, 2014; Qian, Yin, 2008). However, this technology has a bad effect on the environment and leads to severe resource waste for utilizing oil shale. Exploiting oil shale by in-situ method for ‘green mining’ is widely necessary in China (Kang, Wang, Cao, Liang, Chang, & Liu, 2013; Waters, Dean, Downie, Kerrihard, Austbo, & McPherson, 2009; Zoback, Kohli, Das, & McClure, 2012). One of effective method to exploit shale oil is heating oil shale in-situ underground. For instance, the in-situ conversion process (ICP technique) from Shell Company etc. used a direct heating method, and convectional heating oil shale underground by injecting superheated steam from Mining Technology Institute, Taiyuan University of Technology and constructing horizontal fracture in vertical wellbore from Chevron Company use indirect heating method (Chaudhary, Ehlig, & Wattenbarger, 2011; Hazra, Lee, Economides, & Moridis, 2013; Zhao et al., 2010). The convectional heating method contains complicated procedures with phase transition in double-media of fracture-matrix of oil shale subjected to multi-physical fields coupling including stress, fluid and temperature (Zhao et al., 2010). The characteristics of thermodynamics, solid mechanics and seepage of oil shale have been investigated separately (Hopkins, Rosen, & Hill,1998; Kang, Zhao, & Yang, 2008; Yang, Zhao, Kang, 2010; Zhao, Yang, Feng, Liang, & Kang, 2008; Zhao, Cao, Zhao, Lin, & Wang, 2008). However, it is quite difficult to solve constrained problem of each physical parameter in multi-physical fields coupling for oil shale pyrolysis."

Jan 1, 2015

By P. E. Weidmark

"CANMET InformationPART 1-Published PapersAsmis, H. W., ""The dynamic response of caverns in discontinuous rock""; Proc 22nd U.S. Symposium on Rock Mechanics, Cambridge, Mass, June 1981, 272-277; 1981.Austin , M.W., Bray, J.W. and Crawford, A.M., ""A comparison of two indirect boundary element formulations incorporating planes of weakness"" ; Technical Note; Int J Rock Mech Min Sci Geomech Abstr; 19:339-344; 1982.Barrett, J. R., ""Applying geotechnical theory to underground metalliferous mining""; Proc 1st Intnl Conf on Stability in Underground Mining; Vancouver, BC, August 1982; SME of AIMMPE; 210-222; 1983.Barron, K., Wright, P.L. and Smales, T., ""Guideline s for the design of coal pillars in the No .4 seam at Mclntyre Mines Ltd ., Grande Cache, Alberta""; Proc 1st Intnl Conf on Stability in Underground Mining; Vancouver, BC, August 1982; SME of A IMMPE; 559-578; 1983.Bauer, A., ""Wall control blasting in open pit mines""; Mining Engng; 34:155-158; 1982.Bieniawski, Z.T., "" Improved design o f room-and-pillar coal mines for U.S. conditions""; Proc 1st Intnl Conf on Stability in Underground Mining; Vancouver, BC, August 1982; SME of AIMMPE; 19-51; 1982.Blackwell, G.H. and Calder, P.N., ""Practical aspects of wall stability at Brenda Mines Ltd., Peachland, BC""; 3rd Intnl Conf on Stability in Surface Mining; Vancouver, BC, June 1981; SME-A1ME; 3:573-608; 1982.Blake, W., ""Microseismic monitoring for underground stability "" ; Proc 1st Intnl Cont on Stability in Underground Mining; Vancouver , BC, August 1982; SME of AIMMPE; 272-294; 1983.Brawner, C.O., ""Stabilization of rock slopes"" ; 3rd Intnl Conf on Stability in Surface Mining; Vancouver, BC, June 1981; SME-AIME; 3:289-310; 1982.Bridges, M.C., ""Review of open stope mining in Australia""; Proc 1st lntnl Conf on Stability in Underground Mining; Vancouver, BC, August 1982; SME of AIMMPE; 813-828: 1983."

Jan 1, 1983

By Robert Macdonald, William Coombe, John F. Lewry

Gold occurrences have been known in the La Ronge Domain for many year . Mineable reserves have more recently been outlined and there is every prospect of a major gold camp being established in the domain within this decade. The La Ronge Domain lies in the Lower Proterozoic 'Trans-Hudson Orogen' and is part of a collage of Early Proterozoic crust comprising volcanoplutonic arcs, batholiths, associated volcaniclastics and volcanogenic sediments lying between the Superior Craton to the outheast and the reworked Archean basement/Aphebian cover terrain to the northwest. The domain has several lithostructural subdivisions, the most important of whjch , from a gold exploration point of view, is the Central Metavolcanic Belt. This belt is composed dominantly of a range of metavolcanic rocks and gabbroic to granitic intrusives, which geochemically resemble younger subduction-generated 'primitive' arcs developed on oceanic crust. U-Pb zircon geochronology indicates that the arc volcarusm and pre- to late-kjnematic plutonism occurred about 1890 Ma to 1850 Ma ago. The belt has an attained grade of upper greenschist to amphibolite facies and is relatively undeformed , though high strain zones occur locally. Most gold occurrences in the La Ronge Domain have been found in the Star-Waddy Lakes area of the Central Metavolcanic Belt, and in the Sulprude-MacKay Lakes area to the south which is interpreted as a tectonically dismembered part of the main belt. Both tratiformand vein-type gold occurrences are present in the domain; vein-type predominate and form nearly 90 per cent of the occurrences. The stratiform-type occurrences show a regional lithological a sociation with iron-rich sediments within proximal felsic volcanjc sequences. Some vein-type occurrences appear related to brittle fracturing associated with intrusive emplacement (the magmatic-hydrothermal "syn:' and "subvolcanic" veins) and faulting. However, most of the vein-type occurrences exhibit a spatial association with regionalscale ductile shear and other high strain zones, and were probably formed by metamorphichydrothermal processes.

Jan 1, 1986

By H. W. Manley

SULPHUR, like the minerals of coal, iron and petroleum, is one of the essential materials in our modern expanding industrial civilization. Before discussing the salient features of the production of sulphur from the Canadian sour gas, it seems appropriate to outline the historical past and probable future utilization of sulphur. The ancient Greek writer Homer spoke of its "pest-averting sulphur" and the "divine purifying fumigation". Ancient alchemists found sulphur to be a fascinating and baffling material. The discovery of gun powder in the year of 1250, and its application to the art of war a, century later, made sulphur an important commodity in the progress of mankind. The initial manufacture of sulphuric acid in the year of 1736 by the Englishman Joshua Ward, established the basis of a chemical industry that today utilizes 80 per cent of the consumption of elemental sulphur. Commercial production of the chemical soda ash ( N a2C03) discovered in 1787 by the famous Leblanc Process, in-creased international demand for the element sulphur and marks the birthday of the Sicilian sulphur industry.

Jan 1, 1961

By Greg Gosson

These materials are provided for general information purposes only and do not constitute legal advice. Readers are advised to seek specific legal advice from their own counsel in relation to any decision or course of action contemplated. Outline ??What is meant by a ?current technical report? under NI 43-101? ??When is a current technical report required? ??Who makes the decision regarding whether a technical report is current? ??Examples of the types of information that make a technical report no longer current for securities filing purposes.

May 1, 2009

By Lawrence Devon Smith

The selection of the production rate is one of the most crucial decisions to be made in the development of a mineral property. However, it is not uncommon for the production rate to be decided arbitrarily, before any technical evaluations begin, and it is often not reconsidered when better data becomes available. A number of methods are used in the mineral industry to select the production rate for a project. There is general agreement that the size of the ore reserve has a strong influence on this decision, but what other factors are involved? Is there a way to identify an optimum rate? This paper examines the factors that influence the selection of a production rate from the perspective of project economics. The NPV maximum value should be viewed as a “failure” point. The “two times capital” maximum is proposed as a lower limit. A practical check is suggested to confirm that a selected rate is in an optimum range. Production rate assumptions are much more likely to be reviewed for marginal projects, but they should also be reviewed for viable projects.

Jan 1, 1997

By Dale Verran, Jared Orynik, Chad Sorba, David Bronkhorst

Denison Mines Corp. (“Denison”) has a 90% interest in the Wheeler River Uranium Project (“Wheeler River”) located along the eastern edge of the Athabasca Basin in northern Saskatchewan between the Key Lake mill and the McArthur River uranium mine. The project is host to the high-grade Phoenix and Gryphon uranium deposits, discovered by Denison in 2008 and 2014 respectively, which include combined Indicated Mineral Resources of 132.1 million pounds U3O8 (1,809,000 tonnes at an average grade of 3.3% U3O8). The Pre-Feasibility Study (“PFS”), completed in accordance with NI 43-101 in September 2018, is highlighted by the selection of the In-Situ Recovery (“ISR”) mining method for the development of the Phoenix deposit, with an estimated average operating cost of $4.33 (US$3.33) per pound U3O8. Phoenix is the highest-grade undeveloped uranium deposit known globally, including Indicated Mineral Resources of 166,000 tonnes at 19.1% U3O8 for 70.2 million pounds U3O8. The paper aims to provide a summary of Wheeler River and an overview of the proposed development of the Phoenix and Gryphon deposits according to the PFS completed for the Project. Further details regarding the PFS, including additional scientific and technical information are described in greater detail in the NI 43-101 Technical Report titled "Pre-Feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada" dated October 30, 2018 with an effective date of September 24, 2018. A copy of this report is available on Denison's website and under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.

Jan 1, 2020