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By R. G. Achter, E. Wilson

"This paper describes the work undertaken to renovate the Pipe Open Pit drainage system, incorporating measures to improve effluent quality. It describes the technical feat of drilling an l l-inch-diameter hole from the bottom of the open pit for a distance of 1100feet to intersect an underground drift. An innovative method of checking the inclination of this hole is also described. The paper outlines the construction required on the 1500-foot level of the underground mine to facilitate water impoundment and slime settling, as well as the instrumentation for control of water flows. IntroductionThe Manitoba Division of Inco Metals Company operates two mines-an underground mine at Thompson and an open pit at Pipe. The Pipe Open Pit is located 20 miles southwest of the City of Thompson, approximately 400 miles due north of Win nipeg(Fig. 1).Surface diamond drilling of the Pipe ore body was sta rted in 1959. In 1961, a shaft was sunk to a depth o f 1,570 feet to carry out further exploration work and obtain bulk ore samples for metallurgical testing. Site preparation to mine the upper portion of the orebody as an open pit was initiated in 1966 and by late 1967, the removal of silt and clay overburden was in progress. The contractor completed the dredging in the fall of 1969. Over 12 million cubic yards of muskeg, clay and silt was removed, which in some places was 150 feet deep over the orebody. Production began in early 1971, by which time the top three benches of rock had been excavated and the orebody exposed.The Pipe No. 2 Mine main shaft was started in 1970 and completed in 1973 at a depth of 3,160 feet. Development for exploration purposes was carried out on the 1500 and 2460 levels, and permanent pumping facilities were installed.The surface dimensions of the open pit are 2,200 by 1,600 feet, with the long axis striking northeast. The walls are designed with a 45- to 50-degree slope and the ultimate design depth is 720 feet. The present depth of the pit is 520 feet and production capacity is 6,800 tons of ore per mine day."

Jan 1, 1980

By Roger Davieds

FACT: a company?s profitability (or loss) is directly related to the efficiency and effectiveness of its maintenance operation. Fact: in order to contribute in a positive manner, maintenance must understand what its true purpose is in the organization. It is easy to say our main purpose is to increase: ?equipment uptime ?OEE ?asset life cycle We all understand this; so does management.

May 1, 2010

Productivity and efficiency of diesel-powered underground trucks and LHDs can be enhanced through the application of a range of advanced technologies. In addition, these machines are subject to ever more stringent emissions control requirements. This paper will review how various technologies can improve usability, maintainability, and performance of LHDs, through a number of examples. The use of instrumentation and monitoring to understand the role of operator practice on mucking efficiency, as well as the use of finite-element analysis to evaluate structural design, and the use of control techniques to modify operator inputs and hence decrease power consumption, will be presented.

May 1, 2002

By Elizabeth Edwards, Radhakrishnan Mahadevan, Vladimiros G. Papangelakis, Srinath Garg, Kurtis Judd

Mineralogical characterization of the tailings showed the deportment of Ni to be similar in the Vale and Glencore tailings, with 60% of the total Ni locked in pyrrhotite, and the balance 40% associated with pentlandite. The overall Ni dissolution was correlated with the individual dissolution extents of pyrrhotite and pentlandite as functions of four leaching regimes: ‘anoxic acid’ (with and without pH control), ‘oxic acid’ (oxygen sparging), ‘oxic acid’ (air sparging), and ‘oxic ferric’ (air sparging). The results showed that the maximum Ni dissolution was obtained during the pH controlled oxic acid leach with oxygen sparging at pH 1.5, while the anoxic acid leach at pH 1.5 resulted in minimum Ni dissolution (10–15%) from pyrrhotite. An overall Ni mass balance showed that pyrrhotite and pentlandite dissolve simultaneously in the presence of Fe(III) and oxygen, in contrast to the preferential dissolution of pyrrhotite in the absence of Fe(III). Sulphur mass balances revealed that the yield of elemental sulphur is maximized (65%) during the oxic Fe(III) leach at pH 0.6. Furthermore, the kinetics of Ni leaching and elemental sulphur formation from pyrrhotite tailings leached with ferric sulphate between 55–80°C was investigated at constant oxidation-reduction potential. Elemental sulphur yield increased with increasing temperature, but no observable trend could be linked to ferric or ferrous ion concentration.

Jan 1, 2017

By J. G. Thomson

Development of the Canadian North, a subject of growing national interest, must in part await the development of better forms of trans-port. The estimated 500,000 square miles of muskeg terrain in the north combined with the" scarcity of roads make essential the early development of special purpose muskeg vehicles. Good progress has been made in the last eleven years in classifying muskeg and some progress has been made in determining its mechanical properties. Limited travel is now possible through the use of special purpose tracked vehicles which have been built without adequate design data. A program to provide data which can be used to optimize muskeg vehicle designs began in 1957. The results of the second phase of this pro-gram are presented in this report. It is shown that vehicle performance in muskeg is directly related to the mechanical properties of the muskeg. Further, it is shown that good de-sign practice for tracked vehicles expected to operate in snow, sand, soft clays and loams is also good practice for muskeg vehicles. All indications are that muskeg mechanics is properly a part of conventional soil mechanics.

Jan 1, 1961

By Simon C. Dominy, Alwyn E. Annels, Paul Wheeler, Suzanne P. Barr, G. Simon Camm

Narrow veins are an important world-wide source of silver, tin, uranium and particularly gold. To potential ?nanciers, this style of mineralization is viewed as high risk because of the often relatively small resource involved and high cost of estimation. In many cases diamond core drilling will not enable resource estimation beyond the inferred and indicated categories. Exploratory under-ground development is required to de?ne measured resources. The de?nition of geological and grade continuity are major factors in narrow vein assessment. A measured resource must be based on strong geological and grade continuities. Narrow veins, generally less than 3 m wide, are complex geological phenomena, which commonly display unpredictable geometry and grade distribution. Variations in structural continuity, dip, strike, width, mineralogy and speci?c gravity are common. Veins may be composite, with ore-grade mineralization restricted to a speci?c structural domain. Branches, intersections and braided zones are common features. Potentially high-grade zones are often localized within ore shoots, which are surrounded by barren/low-grade regions. Resources must be determined as closely as possible to reality and re?ect the distribution of the commodity in the rock. Estimation has three main requirements: (1) geological study to determine orebody nature;(2) estimation of tonnage and grade, and (3) the presentation of this information using a classi?cation that is clear, unambiguous and bankable. Estimation methods employed are either classical or geostatistical; however, classical methods are often used because of the dif?culties in applying geo-statistics. Grades generally show a strong positively skewed distribution testifying the presence of high-grade values. Problems exist in the applicability of cutting outlier values risking over- or under-estimation of grade. It is generally believed that where resource estimates are in error, poor geological control is usually the cause. Overestimation can lead to the closure of a mine through lost revenue and capital. An understated estimate can result in an opportunity missed for pro?t and/or greater economies of scale. De?nition of reserves involves the consideration of economic and engineering data, to decide which part of the resource is economically mineable. Geology plays a similarly important role at this stage in the assessment of likely mining method, dilution, recovery etc. Throughout resource/reserve estimation, it is crucial that the amount and quality of the data and the geologist’s experience are relevant. The impact of geological understanding on estimation is often undervalued or assumed to be of lesser importance than ?nding grades and tonnages. This paper discusses the geology of narrow vein deposits and the importance of geology in their evaluation.

Jan 1, 1997

By Simon C. Dominy, Alwyn E. Annels, Paul Wheeler, Suzanne P. Barr, G. Simon Camm

Abstract-Narrow veins are an important world-wide source of silver, tin, uranium and particularly gold. To potential financiers, this style of mineralization is viewed as high risk because of the often relatively small resource involved and high cost of estimation. In many cases diamond core drilling will not enable resource estimation beyond the inferred and indicated categories. Exploratory underground development is required to define measured resources. The definition of geological and grade continuity are major factors in narrow vein assessment. A measured resource must be based on strong geological and grade continuities. Narrow veins, generally less than 3 m wide, are complex geological phenomena, which commonly display unpredictable geometry and grade distribution. Variations in structural continuity, dip, strike, width, mineralogy and specific gravity are common. Veins may be composite, with ore-grade mineralization restricted to a specific structural domain. Branches, intersections and braided zones are common features. Potentially high-grade zones are often localized within ore shoots, which are surrounded by barren/low-grade regions. Resources must be determined as closely as possible to reality and reflect the distribution of the commodity in the rock. Estimation has three main requirements: (1) geological study to determine orebody nature; (2) estimation of tonnage and grade, and (3) the presentation of this information using a classification that is clear, unambiguous and bankable. Estimation methods employed are either classical or geostatistical; however, classical methods are often used because of the difficulties in applying geostatistics. Grades generally show a strong positively skewed distribution testifying the presence of high-grade values. Problems exist in the applicability of cutting outlier values risking over- or underestimation of grade. It is generally believed that where resource estimates are in error, poor geological control is usually the cause. Overestimation can lead to the closure of a mine through lost revenue and capital. An understated estimate can result in an opportunity missed for profit and/or greater economies of scale. Definition of reserves involves the consideration of economic and engineering data, to decide which part of the resource is economically mineable. Geology plays a similarly important role at this stage in the assessment of likely mining method, dilution, recovery etc. Throughout resource/reserve estimation, it is crucial that the amount and quality of the data and the geologist’s experience are relevant. The impact of geological understanding on estimation is often undervalued or assumed to be of lesser importance than finding grades and tonnages. This paper discusses the geology of narrow vein deposits and the importance of geology in their evaluation.

Jan 1, 1997

By Frank Lemy

This paper presents an application of digital face mapping in an underground mine. Based on photographs it was possible to construct discontinuity maps, which were used to characterise the rock mass. The results were compared favourably with values obtained through scanline and area sampling mapping for the same site. The case is made for digital mapping as a safe, fast, and efficient way to characterise rock mass structure for engineering purposes.

May 1, 2001

By Ausenco Engineering Canada

"This paper demonstrates the selection of grinding circuit technology for a number of recent projects including discussion of the key drivers and the role of energy efficiency. Decreasing head grades combined with a strong and sustained increase in operating costs has forced miners to examine increased project size, increased equipment capacity and efficiency improvements in order to reduce their unit operating costs and improve overall project economics. Comminution energy consumption, safety and capital cost considerations play a critical role in the success of projects. This paper presents some key guidelines for a successful and cost effective comminution circuit design and includes a case study on three projects, outlining the issues and the drivers which led to the ultimate circuit selection and the critical role that energy efficiency played.INTRODUCTIONComminution circuits for minerals processing are selected based on their suitability and efficiency in reducing run-of-mine ore to the desired feed size for the downstream process. The input material (ore) properties and downstream process requirements are the key determinants and there are standard approaches for each circumstance.The minerals processing industry has been a fast adaptor of efficiency improvements based on increasing capacity of equipment (e.g. trucks, crushers, mills, pumps) but less successful in adapting radically new technologies that disrupt incumbent flowsheets or processes.The installed power of grinding mills has increased linearly over the past 25 years (Meka & Lane, 2010) and pumps and classification equipment have kept pace. The autogenous grinding (AG) and semiautogenous grinding (SAG) mills displaced stage crushing as a dominant method of coarse rock breakage in many applications causing crusher manufactures to increase the capacity of cone crushers to meet the competitive demand.Examples of new comminution technology in the 20th and 21st centuries are the development and adoption of cyclone classification in the 1940s (Newtech, 2016), AG milling in the late 1950s, vertical grinding mills in the 1980s, high pressure grinding rolls (HPGRs) also in the 1980s and ultrafine milling technology in the 1990s (Meka & Lane, 2010)."

Jan 1, 2016

By S. Khallouk, J. Zollinger, J. R. Kennedy, E. Bouzy, B. Rouat, D. Daloz

Titanium aluminides recently replaced Ni-based superalloys as turbine blades in the last LP stage of aircraft engines. To extend their range of use at higher temperature their properties need to be improved, either by alloying or processing. An efficient solution is to reduce the grain size during the solidification process. In the first part of the paper, an overview is given on the possibilities for grain refinement of such alloys, based on literature data and new results. The most efficient grain refinement is obtained with boron addition which leads to boride formations that are detrimental for in-use properties of turbine blades. In this work, the use of the high grain refinement potency of inoculation with non-brittle particles has been used by developing new refractory-based inoculants. The effect of one of these inoculants on grain refinement of an as-cast structure in a Ti-46Al is presented; resulting in a reduction of the grain size by a factor of 3.While less efficient compared to the potency of boron containing alloys, the grain refinement is effective and does not introduce any embrittling particles.

Jan 1, 2015

By A. J. Baer

"DEFINITION OF THE REGION AND ITS BOUNDARIESTHE EXPOSED PART OF THE GRENVILLE PROVINCE is the southeastern part of the Canadian Shield, characterized by crystalline rocks with K-Ar ages of about 1,000 million years. Its Canadian portion is bounded on the southwest by Georgian Bay •and by Paleozoic sediments south of a line passing through Orillia and Kingston, on the southeast by the St. Lawrence River valley and the north shore of the Gulf of the St. Lawrence, on the east by the coast of Labrador and on the northwest by the Grenville front, a linear tec-tonic feature that is a metamorphic transition zone and/or a fault. Rocks located to the southeast of the front have younger K-Ar radiom€tric ages than rocks located to the northwest of it.The region is formed of complexly deformed and highly metamorphosed crystalline rocks and in part differs from other areas of the Canadian Shield by the presence of large amounts of crystalline limestone and bodies of anorthosite."

Jan 1, 1970

By T. Bednarski, T. McCallum, L. Moya, L. Nsenga, B. Mbao

The accumulation of solids in solvent extraction (SX) circuits can cause problems with the physical and economic performance of the operation. These solids are responsible for the formation of crud, a solid stabilized emulsion containing organic, aqueous, air, and fine solid particles. The build-up of crud in SX settlers can limit SX operation throughput, require plant downtime, lead to higher organic losses, or result in higher aqueous in organic entrainment (all of which can have a significant, negative economic impact). Current practices for crud management are typically reactive. Crud is physically removed after it has been allowed to build to excessive levels in the circuit and processed mechanically using centrifuges or filtration. A new proactive solution has been developed to prevent crud formation and build-up. Low ppm dosage of an additive, ACORGA® CR60, into the pregnant leach solution (PLS) has resulted in reduced crud formation in pilot and commercial scale for a variety of PLS streams. This paper will review results from operations in North America and Africa, covering heap leach, concentrate leach, and agitated leach feeds. INTRODUCTION Crud formation and build-up in solvent extraction (SX) circuits has been a long time topic discussed and claimed to be crucial to the whole hydrometallurgical process (Liu, et al, 2006). Crud formation is present in all SX systems be it copper, uranium, zinc, etc., and Ritcey (1980) defined crud as a stabilized emulsion containing organic, aqueous, and fine solid particles. The ore type and feed composition is a major determining factor of crud formation and typically contains Si, Al, Fe, P, and sulfates (Ritcey, 1980). It typically builds at the interface between the organic and aqueous, but can also be observed as floating crud on the surface of the settler, or bottom crud, which is common to find in circuits treating agitated leach feeds such as in Africa. As crud formation has been unavoidable, many of the current crud management techniques are reactive, allowing crud to form and build in SX circuits. Once it does, it is removed and treated via different mechanical techniques, typically through some type of filtration or three-phase centrifuge, to remove the solids and recover the organic phase trapped within the emulsion (Ritcey, 1980). Automated pumping systems have also been designed and are frequently used in North American operations. The time and capital required to react to crud formation can be an overwhelming aspect to SX operation.

Jan 1, 2019

By H. G. Harper, R. C. Hart

"The Mississagi quartzite is the basal formation of the Quirke Lake trough. As it is traced around the rim, a gradual change in dip is observed, as follows:Northwest corner 50 degrees south.Algom Quirke mine 34 degrees south.Quirke Lake 25 degrees south.Whiskey Lake 22 degrees west.Pecors Lake 25 degrees north.Algom Nordic mine 18 degrees north.Elliot Lake 11 degrees north.Pistol Lake 5-7 degrees west.Thus the apparent synclinal axis is a curving east-west line lying closer to the north limb than to the south. The axis appears to plunge west at about 5 degrees.The Huronian sediments lie on a basement of granites, gabbros, and volcanics. Diamond drill evidence indicates that this basement has a surface of peneplanation, and that the areas of soft basic rock have a smoother topography than the granite. For the most part the orebodies at the Quirke and Nordic mines overlie a basement of soft basic rock.The Mississagi formation is the host rock of the deposits, and its primary structures are suggestive of the conditions under which the conglomerate beds were deposited. Cross-bedding is common, although normal bedding varies from thick to thin to essentially lacking. Grain gradation is not common. Where coarse and fine grains occur together, the coarse tend to be more rounded than the fine. These features are characteristic of shallow-water deposits, laid down above the lower limit of wave action. Therefore, the quartz-pebble conglomerates probably represent ancient water courses, bays, beaches, and bars.The causes governing the creation of the trough can only be conjectured, but there is evidence that both subsidence and compressive stresses played active roles. Drag-folds in argillite beds near Whiskey Lake indicate compressive stress. On the other hand, gentle crumpling in thin-bedded limestones on Quirke Lake is probably due to pre-induration slumping and folding. If strong compression had been widespread within the trough, one would expect drag-folding and shearing of the incompetent beds to be more general. Two large-scale, fold-like structures were mapped by Collins, but their axes do not parallel the trough axis, and they are therefore not related to the major structure."

Jan 1, 1949

By G. A. Maki, P. J. Fullman, R. G. Roden

"In October 1984, Rocanville Division began using a stacking system to handle potash mill tailings. Previous to this date, mill tailings were slurried to the top of the tailings pile and allowed to debrine while flowing down the pile. With the new stacking system, slurried tailings are fed to mobile stackers. The stackers consist of cyclone packs to debrine the tailings and drag conveyors with screw discharges to deposit the tailings onto the existing pile. This paper deals with the various aspects of the project from conception to its present state.IntroductionPrevious to 1984, when the stacking project was first implemented, potash mill tailings were handled as follows. Mill tailings were first debrined to approximately 65010 solids using a cyclone cluster. The cyclone underflows were then introduced onto a vacuum scroll filter table. Here the tailings were further debrined and discharged into the disposal tank where the tailings were reslurried with reclaim brine and pumped to the tailings disposal site. At the disposal site the slurry was discharged onto the tailings pile and by a natural settling process the tailings were debrined with the brine ultimately collected in the reclaim brine ponds. The shape and profile of the tailings pile was controlled by building salt dykes to control the flow of the discharged tailings slurry. As the tailings pile grew in height, booster pumps were added to the disposal system."

Jan 1, 1990

By R. B. Kaunda

One fundamental requirement for surface and underground rock engineering is the ability to characterise the rock mass. An accurate characterisation of the rock mass allows rock engineers to optimize designs safely and economically. A number of classification systems have been developed in the past 50 years to help characterise rock masses such as RMR, Q system, Rmi, and several others. The challenge in developing rock characterisation schemes is often practicality, i.e. creating systems with relatively simple inputs for the everyday practitioner. A second challenge is the degree of subjectivity often inherent in commonly used classification systems. These challenges are especially exacerbated in weak rock or densely jointed rock masses. This paper introduces a new approach to characterise densely jointed rock mass using artificial neural networks and principal component analysis, based on principles commonly used in the geotechnical engineering of rock fills and waste rock dumps. Thirteen input parameters are dimensionally compressed using principal component analysis. Using a global database with more than 100 case histories, an artificial neural network is developed to conduct the rock mass characterisation. The advantage of this approach is less subjectivity as commonly used engineering (quantitative) terms are put to use. A further advantage is that given that the method is site-data dependent, it allows for ‘fine tuning’ of the model for a specific site.

Jan 1, 2015

By W. R. Hopkins, J. A. Davis

"This paper presents a discussion of the mechanisms by which aerosols of the process electrolyte are entrained into the breathing environment of copper, Zinc and nickel eIectrowinning tankhouses. Literature outlining the health effects associated with worker & posure to the acidic and metallic contaminants found in the airbome aerosols is summarized and compared with existing North American regulations.A brief review of the existing technologies for the source reduction of these aerosols is presented. This paper outlines the industry experience with use of covers, balls, beads, shapes, fixtures and chemical surfaetants. Each of these devices is ranked according to its effusiveness in the process in which it is used, and rated according to its operator acceptance.The various forms of existing in-plant ventilation systems are reviewed with a discussion of their relative merits and effectiveness. Actual experience is related, detailing the methods of testing for ambient contaminant levels in a variety of tankhouse environments. Guidelines are provided for the site and process specific criteria which govern the selection and ultimate effectiveness of a particular form of ventilation system.Finally, actual project experience is cited in which hydraulic modelling is used a design tool in tankhouse ventilation design. These projects include the upgrading of existing traditional ventilation designs, and the ''grass roots"" design of a more efficient aerosol source control system to be used in high altitude, cold weather sites."

Jan 1, 1994

By Peter F. Pullen

The need to apply the latest available technology to develop better tools and methods to meet problems in the mining industry was recognized by six of Canada's leading mining companies. As a result, MIROC (Mining Industry Research Organization of Canada) was chartered to identify problem areas in Canadian mining and to have research carried out to develop the tools and equipment to meet these perceived needs. The initial activity of MIROC has been in the environmental field, with improved clothing and protective devices being developed by contractors. Work clothing for miners is now being field tested. Respiratory protection and a new personal light source combined in a new "space-age" helmet are about to be issued for testing. Further developmental work is being carried on to offer these units and probably other personal protective devices on an individual basis as well as in a combined package.

Jan 1, 1979

By T. Kawai

Japan Oil, Gas and Metals National Corporation (JOGMEC) has started an exploration program for Seafloor Massive Sulfides (SMS) in the EEZ of Japan, and launched an investigation program for mining, processing and environmental impact on SMS development. With regard to the mining aspect, the mining system consists of three units: a mining unit on the sea floor, an ore lift-up unit to surface, and a mining support vessel unit which has an ore unloading system that unloads onto a shuttle ship. Regarding the mining unit, JOGMEC and certain Japanese mining and machinery companies developed two types of state of the art mining testing tools. Excavation tests on the actual SMS site in the Okinawa Trough, south-west of Japan, were conducted in 2012. In these tests, the functions of the testing tools, such as cutting ore, moving on the seafloor and climbing up slopes having steeper than a 25 degree gradient, were confirmed. The physical characteristics of the ore, which are key parameters for establishing a mining system, are yet to be fully understood as the exploration program has been undertaken simultaneously. Hence, those examinations have been carried out by ground cutting experiments, analysis of drilling core data, and the like. This paper describes the outline of a proposed mining system, mining testing tools and results of the on-site mining testing.

Aug 1, 2013

By P. G. Keohane, J. S. Drake

"Cominco's Polaris Mine is a lead-zinc underground operation that began commercial production in early 1982. The mine site is located on Little Cornwallis Island in the Canadian Arctic at a latitude of 75°23'N and at a longitude of 96°55'W. The nearest settlement, Resolute Bay, some 100 kilometres southeasterly from the mine, is accessed from the mine by light aircraft. The mine site can be accessed by sea during the six-week ice-free period each year. During this time all major operating supplies are brought to the mine and the lead and zinc concentrate products are shipped out to market.GeologyThe Polaris orebody lies near the top of the Thumb Mountain Formation of Ordovician age. This formation is a relatively homogeneous section of thin to medium bedded limestones which are brecciated and dolomitized in the area around the orebody. The deposit is described as a Mississippi Valley-type orebody. Ore minerals are sphalerite and galena with the waste being predominantly dolomite with calcite and marcasite. The ore is quite porous with voids being generally filled with ice as the mineralized zone lies entirely within permafrost. Reserves consist of about twenty million tonnes of ore grading 3.8% Pb and 14.3% Zn with a further three million tonnes of inferred ore at a slightly lower grade.The orebody strikes in a north-south direction with the hangingwall dipping at about twenty degrees to the east. It is generally conformable with the stratigraphy. The footwall in the western portion of the orebody, the Panhandle, lies about 10 to 30 metres below the hangingwall. To the east the footwall drops sharply, creating an orebody height of up to 110 metres in what is referred to as the Keel Zone. The Panhandle Zone has typically 80 - 110 metres of cover above the hangingwall , About 25% of the reserves are in the Panhandle Zone, the remainder being in the Keel Zone. Figure I illustrates a plan view of the orebody relative to other surface facilities on the property and Figure 2 illustrates a simplified section through the Panhandle and Keel Zones."

Jan 1, 1985

By R. D. Lindsay

Originally the focus of Deak Resources Corporation Business Plan was to establish a method for treating small gold and possibly base metal mineral deposits located in the Kirkland Lake - Noranda area of Northeastern Ontario, Northwestern Quebec at a central treatment facility. Since the establishment of this original business plan in 1988 other processing options have availed themselves for handling the base metal ores off site at a central facility which may preclude their processing at Deak.The site selected for the Deak processing plant was Kerr Addison's Virginiatown operation. At the time this property was acquired from the Receiver following Golden Shield Resources' Bankruptcy in 1989 the mill had been processing in the order of 1, 100 SDT per calendar day through one processing module; a module originally designed to process 1,500 SDT/day of a free milling gold ore. This tonnage level however had not been achieved since 1966 when an average throughput of 1481 SDT per calendar day was recorded.In order to realize Deak's overall Business Plan it would be necessary to expand the mills processing capabilities to provide:(1) A 2200 SOT per day circuit capable of processing a free milling, medium work index gold ore;(2) a 1 ,000 SDT per day flotation and/or cyanidation circuit capable of processing refractory gold bearing materials containing refractory minerals (i.e. copper) that should be removed prior to cyanidation; and possibly(3) a 1200 to 1500 SDT/day base metal circuit capable of processing the broad range of Deaks' Base Metal Property ores. If this circuit were introduced it would be completed in two tonnage phases.Further, it was recognized when operations resumed under Deak in 1990 that the existing tailings dam was suitable for, and had sufficient capacity for additional gold tailings with necessary physical modifications and changes in disposal techniques (including the construction of containment storage cells) that would allow storage for an additional 3.4 million tons of gold ore tailings approximately 1.0 million of which has been deposited since 1990. The focus of Deak's long term tailings disposal strategy is to acquire the Barber Lake Basin which is currently adjoined to our main tailings system which will provide an additional 10 million tons of storage capacity.

Jan 1, 1993