Search Documents

By Richard L. Gordon, William A. Vogely

ENERGY POI.ICY-PRINCIPLES AND THEIR PRACTICE Persistently, at least since the end of World War 11, governments have intervened broadly, deeply, and incoherently in major energy markets. If we take a broad definition of energy that encompasses gas distribution and electric power, we can observe regulations of even older vintage. This trend, of course, is not unique to energy. Expansion of government controls has occurred in many areas. The relevant basic question about energy regulation, therefore, is not why is energy special, but whether any general principles exist to explain the wisdom of existing regulations. This review takes place at a time, the middle 1980s, in which a massive onslaught is being undertaken against government regulation. However, the present chapter is influenced primarily by my observations of the failures of energy regulations and not by any inspiration from those ideologically opposed to government intervention. Several subquestions arise in policy appraisal. A primary need is to establish clear objectives and determine the consistency between these goals and the policies imposed. Thus, the first step is to set objectives. The next is to outline ways to attain these goals. However, it should be recognized that many apparently distinct options are economically equivalent. When the goal is to charge producers or consumers for something, it is possible to attain the same result through either government ownership or taxing private transactions. The tax can raise the price to the level the government would have charged if it were the owner. Creation of a Department of Energy is not necessarily any different from having separate energy agencies well coordinated by some small supervisory body. Thus, a distinction should be made between substance and form in policymaking. The critical substance concerns such matters as whether the government imposes financial penalties, incentives, or rules to attain a goal. Then, there can be many equivalent ways to implement the basic policy form. The second prior illustration suggests that one favorite question is how to attain proper integration of policy. At various times, voices on either (or even both) sides of the Atlantic have called for a coordinated energy policy. The U.S. Paley Commission made this a primary goal for future policy. The western European governments that were the founding members of the Coal and Steel, Economic, and Atomic Energy Communities spent much time in the middle fifties and much of the sixties trying futilely to agree on an energy policy. (See Gordon, 1970 for an annotated review). The energy price rises of the 1970s rekindled United States interest in coordination. However, astute observers of the problem such as O. C. Herfindahl of the United States and Maurice Allais (1 962) in France warned the discussions confused form with substance. The crucial issues were what were the goals and what were the best types of policies to attain such goals. Policy suffered, not from poor organization, but from discord about the goals and how to attain them. All this suggests that we need principles to guide policy appraisal. The branch of economic theory known as welfare economics concentrates on providing guidance about the problems of policymaking. The theory examines both what

Jan 1, 1985

By Charles A. Beasley, Vince Joyce, David E. Beasley, Orlando A. Gallegos, David A. Shuman, Mehmet H. Erten

COAL CHARACARISTICS AND PREPREPARATION REQUIREMENTS Preparation and Market Specifications The national ambient air quality standards (NAAQS) established by the Environmental Protection Agency in 1977 require that when coal is burned, the environmental degradation should be a minimum. For this reason, even coal containing low ash and sulfur must be used in compliance with the NAAQS. The most important pollutants resulting from the combustion of coal are ash, SO2, and NOx gases, and the particulate matter escaping with the combustion gases. The ash is the residue left after complete combustion of coal. It results from the inorganic mineral matter existing in the coal before it is burned. The SO2 results from the combustion of inorganic and organic sulfur associated with the coal. The inorganic sulfur may occur as pyrite, marcasite, or as sulfate sulfur of mostly iron and calcium. The authorities disagree in the definition of organic sulfur in the coal. However, according to ASTM Standard D2492-77,1 the organic sulfur is that sulfur occurring in the coal after subtracting the sum of pyrite and sulfatic sulfurs from the total sulfur in the coal. The NOx gases are produced from high temperature oxidation of nitrogen in the coal that is released into the atmosphere. The particulate matter may consist of fly ash and unburned coal. Selective Mining The cleaning of coal from included ash and sulfur-bearing materials should start at the working faces of surface or underground mines. This can be done by (1) mining only those seams which meet certain quality standards, (2) not mining sections of the seams which may cause deterioration in overall quality of the mined coal, and (3) using a mining method that allows selective mining of coal areas or horizons either underground or on the surface. Since these steps improve the coal quality before the coal reaches the preparation plant, they can be considered to constitute precleaning of coal. During the exploration and development stage of a mine, core and channel samples taken from the coal seam are used to determine (1) petrographic analysis and physical properties,2 (2) character of roof and floor of the seam, 3,4 (3) character and quality of impurities,5 (4) proximate and ultimate analysis, and (5) washability characteristics. However, all of these parameters are subject to considerable variation even within the same seam during the advance of the coal face. This creates a problem in meeting the market demand for coal quality if the coal is to be shipped directly from the mine. If the mining operation is large enough, special blending silos or mechanical blending systems may have to be used to provide uniform quality to the market. However, even if the coal is shipped from a coal preparation plant, prepreparation

Jan 1, 1991

By Y. C. Kim

Although the first published optimum pit limit design algorithm by Lerchs-Grossmann dates back to 1965, the majority of the open-pit mines in the U.S. has not as yet adopted such a rigorous optimization algorithm. Instead, the floating cone approach initially developed by Kennecott Copper in 1961 is still used today for various reasons. However, shortcomings with the floating cone algorithm, particularly for precious metal deposits with erratic mineral distributions, have provided a renewed interest in optimizing algorithms.

Jan 1, 1988

By E. Woodburn, Harrison R. Cooper, R. Putman

The key to concentrator automation is practical means for obtaining continuous assay data from concentrator streams. The technique most successfully used is x-ray fluorescence analysis. The practical reality of on-stream x-ray analysis has been achieved through effort over the past twenty years, marked by an occasional breakthrough, but more typically a step-by-step development to which many individuals and organizations have contributed. The net result of this progress is the present capability to install on-stream x-ray analyzer systems on a turn-key basis. It is now possible to provide all components of an x-ray analysis system as a completely engineered unit which can be put into immediate use, minimizing needs for specialized application know- ledge to benefit from continuous assaying in process control. The economic factors which influence the choice of system and limitations of the x-ray fluorescence technique for slurry analysis are reviewed.

Jan 1, 1976

By Erich Sarapuu

Today's increasing needs for rapid excavation have stimulated efforts to break rocks without explosives. The application of electric energy for this purpose has been studied by a number of investigators. Following principles have been used in electrical rock breaking: 1. induction heating5 2. high frequency heating4, 14 3. microwave heating6 4. contact resistance heating9,12 5. resistance heating11,13 6. electron beam heating1, 3 7. plasma jet heating2, 8 8. arc heating7 9. condensor discharge energy14 In this paper the presentation of the principles of electrical fragmentation is limited to a process called "electrofracing". This technique uses electrical heating of rock by electrode contact resistance9 and resistance heating" phenomena. The electrically induced stresses inside of rock generate forces which break up the material. The fracturing of ore takes place by tensile stresses instead of compressive forces. The electric energy merely creates fractures in the rock and the separation of fractured material takes place by subsequent mechanical handling. Energy requirements in secondary breaking of iron ores have been about one to two kilowatt-hours per ton of ore. Power requirement is a function of the degree of fragmentation.

Jan 1, 1969

By Robert A. Pimentel

Dust is still a major problem in increasing production from longwall faces. Over the last decade, significant improvements have been made in the development of techniques for reducing dust exposure on conventional and continuous sections. But virtually no improvements have been made in dust control on longwall sections. It is true, that there are many more continuous mining sections than longwall sections in the United States and that the number of workers overexposed on continuous miner sections is much larger than the number on longwall sections. However, the problem on continuous miner sections appears much easier to solve and, in fact, we believe that the techniques are available to get virtually all continuous miner sections in compliance. The problems on longwall sections are much more elusive. Also, the number of longwall sections in the United States is expected to increase during the 1980's. Thus, dust control on longwall sections remains a formidable and important problem. Companies operating longwall sections with a dust problem are faced with the tasks of having to quantify the various dust sources, of selecting proper techniques to reduce the problem, of implementing the techniques and of evaluating their effectiveness.

Jan 1, 1983

By J. J. Schwoebel, M. J. Mavor

Rapid coal extraction techniques in gassy mines may strain a ventilation system if a degasification approach is not utilized. Design of mine ventilation systems requires estimates of gas emission rates from unmined coal into the existing mine workings. A degasification system for a specific property can be properly engineered to improve mining economics if the proper geologic and reservoir information is collected. This paper describes methods to determine the degasification rates for horizontal boreholes and vertical (stimulated and unstimulated) wells and the rate of gas emissions into the mine workings. The methodology is demonstrated by a specific example. Horizontal boreholes drilled in advance of mining are demonstrated to be the most effective means of coal seam degasification and reduction of gas emissions into mine workings. The significance of the paper is that few published methods for these estimates are available

Jan 1, 1991

By J. D. Morgan

Demand for nonfuel minerals depends in large measure on economic activity, which rose in each quarter of 1985. However, despite 1.7 million new housing starts and a 7% increase in motor vehicle production, many domestic metal mining operations experienced continued difficulties as a result of import competition, greater use of newer engineered materials, emphasis on multi-unit housing, and downsizing of motor vehicles. Recognizing the continued difficulties of the domestic metal mining industry, many corporations made major efforts to retrench and rationalize - selling, closing, or spinning off less profitable operations, renegotiating labor contracts, and inviting increased participation by foreign firms. About 15% of US energy was imported in 1985. This included $52 billion worth of crude oil and refined products, adding significantly to the overall merchandise trade deficit of $149 billion. With the exception of a few large-bulk, low-value raw materials, most minerals move relatively freely in world trade. The strong dollar encouraged imports and made exporting more difficult US nonfuel minerals trade deficit totalled $17 billion. The US continued to rely on imports for many important strategic minerals in 1985 (see accompanying Table). Increased pressures for protection included major mineral products such as steel, ferroalloys, and copper. But President Reagan, in his Feb. 1986 "Economic Report to the Congress" stated: "Our international trade policy rests firmly on the foundation of free and open markets." He also stressed the need for fair trade and more open markets internationally. The National Critical Materials Council, created by law in the latter part of 1984, was activated in the latter part of 1985. Its first public hearing was held in January 1986. The Council is to review the nation's materials posture and advise the President on such matters. Compared with 1984, the value of US raw nonfuel mineral output rose 2%, to $24 billion. This supported the production of $244 billion worth of processed materials of mineral origin. Raw steel production - a major indicator of both material use and mineral production - fell 4% to 81 Mt (89 million st). Consequently, domestic iron ore production fell to 49 Mt (55 million st), about 97% pelletized. Iron ore imports fell 7% to 16 Mt (18 million st). Raw steelmaking capacity fell 4% to 117 Mt (129 million st). Pacts with 16 leading steel exporting nations have been negotiated in an effort to reduce import penetration of the domestic market. Domestic producers of bulk ferroalloys of chromium, manganese, and silicon operated at about 40% capacity. The US mined no manganese or chromium. Only a small quantity of ferronickel was produced from domestic laterite mining in Oregon. Molybdenum production increased slightly to 49 kt (54,000 st). Mine shipments of tungsten, another mineral tied to steel production, also fell slightly to 1.1 kt (1200 st) of contained metal. Even the domestic aluminum smelting industry suffered reverses as high stocks and low prices reduced production 16% to 3.5 Mt (3.8 million st). Similarly, imports of bauxite fell 7% and alumina 10%. Production of magnesium metal fell 6% to 136 kt (150,000 st), while titanium metal production remained unchanged at 22 kt (24,000 st). Copper mine production was unchanged at 1.1 Mt (1.2 million st). Copper refinery production fell slightly to 1.1 Mt (1.2 million st). Lead mine production rose 24% to 400 kt (440,000 st). Zinc mine output was down 10%, to 225 kt (250,000 st). Refined lead production increased 28%, to 510 kt (560,000 st). Primary slab zinc production fell 5% to 240 kt (260,000 st).

Jan 5, 1986

By Jake Beale, Joe Wickline, M. Van Dyke, Ted M. Klemetti

A longwall coal mine in southwestern Virginia mining the Pocahontas #3 Coal Seam experienced a history of mining-related seismic events. The events were never large enough to cause concern until three major events occurred recording 3.4, 4.3, and 3.4 ML in 2005, 2006, and 2007 respectively. Two of the seismic events generated an air blast which damaged stoppings which fueled a mine fire in 2005 and 2007. The mine responded to the events by narrowing the longwall widths, changing ventilation controls, installing a 7-sensor seismic system around the active panel, and creating a mining hazard map to avoid similar geology in the future. All of the actions taken have prevented seismic activity from impacting mining operations, but it did not prevent other large seismic events from occurring (Van Dyke et al., 2018). In 2016, another large seismic event, measured at 3.7 ML, occurred in the gob that was reported by the local media and recorded by the United States Geological Survey (USGS). While the event did not directly impact mining operations, mine management wanted to know where and under what conditions could large seismic events occur in the future. The National Institute for Occupational Safety and Health (NIOSH) became involved to help understand what conditions precipitated these events so that future mine design could more accurately assess seismic hazards and reduce the risk to mine worker safety. Researchers at NIOSH and mine management created a seismic forecasting map that combined three factors: (1) overburden thickness, (2) sandstone thickness, and (3) the expected caving height of the gob. The criteria were developed based on the geologic data the mine collected from core drilling, e-log analysis, and fiberscope observations. The forecast map was able to provide an accuracy of 72%–85% of events 1.5 ML or greater and 100% accuracy of events that were 3.0 ML or greater based on historical data. The seismic forecasting map was applied to the entire future mining area to show areas where seismic potential could be the greatest based on current mine design planning, ultimately improving the ability of the mine operator to assess the seismic hazards surrounding active and future mining areas (Van Dyke et al. 2018). Following this research, the seismic forecasting map was implemented into the mine’s hazard recognition program and is continuously updated and evaluated prior to mining each longwall panel. This paper will cover in more detail how the seismic and lithologic data was processed and how the mine implemented a new seismic mitigation program based on the forecasting results.

Apr 26, 2022

By Y. H. Zhan

In beneficiation of phosphate ores it is common to use screening to produce the coarse "pebble" concentrate, and flotation to process the -1+0.1 mm size fraction. The -0.1 mm desliming product is treated as tailings. A new partially hydrophobic flocculant, P(MAAA) latex was developed to enhance flotation recovery of fine apatite particles through selective flocculation.

Jan 1, 2002

By G. J. Joy, J. P. Rider

Technical advances in longwall mining over the last several years have resulted in much larger and faster shearers that have the capability of mining at speeds over 30 m/min (100 fpm). This has resulted in a substantial increase in the amount of dust that is generated at the shearer and during shield advances. Meanwhile, increased underground coal production has put a greater demand on longwall dust control systems as some operators have had difficulty maintaining consistent compliance with federal dust standards. To address this need, the U.S. National Institute for Occupational Safety and Health (NIOSH) is investigating the effectiveness of a water spray manifold mounted on the tailgate end of the shearer body. The sprays are oriented parallel to the tailgate ranging arm, and these sprays create a water curtain confining the dust plume near the face, preventing the dust from drifting into the walkway. This redirection of dust provides a clean air envelope for the tailgate shearer operator and jacksetters working near the tailgate drum. Three different tailgate spray manifold designs were tested and evaluated at the Office of Mine Safety and Health Research (OMSHR) Pittsburgh Longwall Test Facility. Manifolds were equipped with hollow cone or flat fan water spray nozzles and evaluated at three face air velocities — 152, 213 and 274 m/min (500, 700 and 900 fpm)— and at water pressures of 689, 1,034 and 1,379 kPa (100, 150 and 200 psi). Reductions in dust concentrations were observed at six face sampling locations for all the tailgate manifold systems at each of the tested spray pressures and face velocities. Average reduction efficiencies of at least 90 percent were seen at the three sampling locations closest to the shearer for all three manifold systems at nozzle spray pressures greater than 689 kPa (100 psi). Based on results from the laboratory tests showing reductions in dust concentrations at sampling locations downwind of the shearer, a spray manifold was fabricated and evaluated at an underground operation.

Jan 1, 2016

By C. H. Rawlins

The total amount of ferrous slag generated in the U.S. is about one-third the amount of iron ore mined, thus ferrous slag can be considered a significant mineral body for processing. Steelmaking slag contains up to 30 wt.% metal of which only the >25mm fraction is commonly recovered. A grinding study was conducted of BOF, EAF, and LMF slags using the Bond Work Index method to determine grindability to 106µm. Work Index values obtained were 13.8-24.9 kWh/ST, depending upon the slag type and composition. Steel particles were magnetically recovered from the crushed and ground samples for size-by-size analysis, yielding up to 18 wt.% of the slag weight recovered as magnetic. The recovered material, as characterized by inert gas melting, was found to be 61-96 wt.% metallic.

Jan 1, 2008

By W. T. Walter

High-G centrifuges from five preparation plants were sampled to determine and quantify the various operating factors affecting performance. The operating factors that were considered include feed rate and percent solids, size of feed material, screen-basket type, hardness of coal and age of the flights. The performance parameters that were measured include product surface moisture, recovery and degradation of the coal. Regression equations with good significance levels were developed.

Jan 1, 1982

16.1.1-VENTILATION'S ROLE Importance of Ventilation and Environmental Control-Mine ventilation is necessary for the preservation of human life and for the conduct of operations involved in the underground extraction of minerals. It clearly is the most essential of the functions attendant to mining, yet it is auxiliary to the primary objective in mineral extraction. Ventilation in mining thus poses a paradox: ideally, it should be carried out with minimum interference with and cost to production operations, yet it is absolutely vital in providing adequate environmental con¬ditions to support mining. Deterioration of the atmosphere, along with rising ground pressure, imposes the ultimate constraint with depth in underground mining. Ventilation requirements and costs rise rapidly with depth. To preserve atmospheric quality under intense heat conditions, ventilation at great depths must be supplemented by air condition¬ing. Likewise, when mining at any depth under severe or excessive conditions of gas, dust or humidity, supplementary control measures must be employed. In recent years, environmental standards in mines have been raised substantially. While limits are based on human tolerance, increasing concern is being expressed for standards of human comfort. The reasons are economic, as well as humanitarian. Worker performance and longevity correlates closely with environmental quality. Further, adverse accident and insurance compensation rates are a consequence of unsatisfactory environmental conditions. No mining company can afford to be lax in its environmental and ventilation practices. Functions and Processes-Ventilation is the control of air movement, its amount and its direction. As a means of quantity control, it is one of the constituent processes of total air conditioning, the simultaneous control within prescribed limits of the quality, quantity and temperature-humidity of the air. Ventilation is the most common and most. important conditioning process employed in mines for air environmental control. In mine ventilation, air is coursed through the mine workings and openings themselves and, for auxiliary purposes, through vent tubing and ducts. Thus, many interdependencies exist between the mining system and ventilation method. In fact, the two often have evolved ,jointly, as in room-and-pillar extraction of bedded or tabular mineral deposits, such as coal. Ventilation in mines today is provided almost exclusively by large fans, although air flow may result due to natural (thermodynamic) conditions. As mines increase in depth, size and complexity, demands on the ventilation system to maintain more stringent standards of environmental quality likewise rise. On the other hand, never have the technology and resources of the mining industry to cope with environmental problems been so well developed as they are today. In spite of rising costs, it is unlikely that further progress in mine ventila¬tion and air conditioning must await technological breakthroughs. 16.1.2-NATURE OF THE MINE ATMOSPHERE Air Mixtures-Air is a gaseous mixture comprising the natural atmosphere at the surface of the earth. Thermodynamically, it may be thought of as a mech-

Jan 1, 1973

By J. D. Miller

Flotation chemists have long sought to unravel the mechanisms of carboxylate collector adsorption by semi-soluble salt minerals. In particular, the adsorption density of adsorbed carboxylates, adsorption kinetics, speciation (chemisorbed, physisorbed), orientation, and conformation are of interest. Given the importance of these phenomena in establishing the hydrophobic state at a mineral surface, in-situ surface spectroscopy studies certainly are justified. Such measurements traditionally have been difficult to perform. However, beginning in the late 1980s, a Fourier transform infrared (FTIR) spectroscopic technique was developed that has allowed for the acquisition of a wealth of detailed information concerning carboxyiate adsorption in semi-soluble salt flotation systems. The technique, internal rejection spectroscopy using single-crystal internal reflection elements, is reviewed, as it applies to semi-soluble salt flotation systems.

Jan 1, 1999

By Gennaro Gerald Marino

In this paper the main subsidence- ground-structure interactions and an overview of the response of surface structures to subsidence ground movements are presented. The purpose of the paper is to augment our understanding for more effective application of available data as well as to highlight the essential site conditions in building response. The data presented general1 y applies to houses to structures up to 2-3 stories high and no more than several hundred feet in length. Superstructures of these buildings are supported by exterior (wood-frame or masonry) bearing walls with the interior floor loads carried by essentially one row of interior columns. This paper is not directed towards the response of tall buildings, steel-framed structures, or building types commonly associated with schools, churches, libraries, etc.

Jan 1, 1986

By J. Bartrum

Kidston Gold Mines is a 14 000 tonnes per day rated operation located 280 kilometers west of Townsville in Queensland. The principle shareholder is Placer Development Limited. Kidston's orebody consists of 44.2 million tonnes graded at 1.79 g/t gold and 2.22 g/t silver. Production commenced in January, 1985, and despite a number of control, mechanical and electrical problems, each month has seen a steady improvement in plant performance to a current level of over ninety percent rated capacity.

Jan 1, 1985

By Nathaniel Wollman

About nine years ago the President's Materials Policy Co commission under the chairmanship of William Paley released its report entitled "Resources for Freedom." Not long ago the Senate Select Committee on National Water Resources under the chairmanship of Senator Kerr released a study entitled Water Supply and Demand. Both reports contained projections of future water user the report for 1975, and the Select Committee print for 1980 and 2000, It is my task to compare the two reports. In the initial letter from Mr. Kazmann arranging for thus session he suggested that I present "a critical evaluation of the Paley Report's section on water ?ten years later,? which might include a comparison of predicted and actual water-use rates and would spotlight the assumptions which lead to errors in the predictions , . ." It is possible to compare the results of both studies, and it possible to explain art of the differences that can be found between them. The remainder must remain shrouded in doubt, since the Paley Report did not give all details of the methods used in estimating the com¬ponents of water use.

Jan 1, 1961

By Bruce R. Sutherland, Jim B. Ramsden, Gerry L. Bolton

Conductive metal powders are important building blocks for today's micro-electronic circuitry. Formulated into inks, they provide the interconnects needed to complete a complex integrated circuit and the means to enter the world of miniaturization. Traditionally, the inks have been based upon expensive metals such as silver, palladium, platinum and gold because of their excellent electrical conductivity and resistance to corrosion and oxidation. The use of a copper based ink, as an alternative to precious metal inks, recently has received considerable attention. Instability in the prices and limited supply of certain precious metal systems have driven up production costs, making the development of a lower cost copper system more attractive to manufacturers. However, lower production costs are on1 y real ized if performance and reliability can be maintained. While the development has been driven by cost, copper does offer some significant performance advantages over noble metal systems: conductivity as good as silver and 4W better than gold; leach resistance better than silver and equal to gold; stability at high frequencies better than gold or silver; strong film bonding characteristics; and compatibility with most solders. These benefits, however, do not come without cost. The inherently reactive nature of pure copper, while providing unique performance properties, makes it difficult to process. Unl i ke precious metals which can be fired in air, copper would oxidize and so requires special furnaces and atmospheres. Despite these difficulties, the transition from precious metal thick film systems to copper is gaining momentum. Manufacturers of high density, high performance circuitry are exploring the performance advantages of copper over gold and silver and the manufacturers of consumer products are considering the potential cost savings of copper over silver-palladium. Sherritt has developed a fine copper powder for this industry. Through association with the ink manufacturers, it has been found that performance properties of the ink vary with the physical and chemical characteristics of the powder. Production Process The production of very fine copper powders at Sherritt is based upon the disproportionation of cuprous ions as outlined in Equation [1] (1).

Jan 1, 1990

By Donald S. Bubar

The Separation Rapids property, located approximately 60 km (37 miles) north of Kenora, Ontario, Canada, is host to one of the largest rare metal pegmatite deposits in the world. This pegmatite was named the Big Whopper by its discoverer, Dr. Fred Breaks of the Ontario Geological Survey, because of the exceptional length and width of the surface exposure. The property is readily accessible from a main, all-weather road via a network of secondary logging roads. The main line of the Canadian National Railway passes through the village of Redditt, just 40 km (24 miles) south of the property. The Big Whopper is one of the complex-type (petalite sub-type) class of rare metal pegmatites that are geochemically the most highly evolved in the spectrum of granitic pegmatites. Such deposits are economically important as resources for the rare metals lithium, tantalum, cesium, and rubidium. While complex-type pegmatites are found in many areas of the world, most are too small to be profitably mined, however, with an inferred resource in excess of 15 million metric tons (mt) (17 million short tons [st]), the Big Whopper is only the fourth deposit of its type in the world with the size required to be of major economic importance. The other three deposits, which are currently in production, are the Tanco mine in Manitoba, the Bikita mine in Zimbabwe, and the Greenbushes mine in Western Australia. The Big Whopper is situated in the eastern continuation of the Archean Bird River greenstone belt which also hosts the Tanco pegmatite, approximately 60 km (37 miles) to the west. The principal commodities identified in the portions of the Big Whopper pegmatite explored to date are petalite (LiAlSi4010) and rubidium-rich K-feldspar. These are industrial minerals with important applications in the glass and ceramics industries. The Big Whopper also contains substantial quantities of lepidolite, a lithium, rubidium-mica which is the principal ore mineral for rubidium metal. Tantalum and cesium occur in anomalous levels with the petalite mineralization, and the possibility of finding zones of high enrichment in these valuable high-tech metals elsewhere in the deposit is excellent. Such enriched zones are typical of pegmatites as highly evolved as the Big Whopper. To date, the geological mapping and diamond drilling work completed by Avalon have delineated the Big Whopper pegmatite system over a strike length exceeding 1.5 km (0.9 miles), over widths ranging from 10 m to 80 m (30 feet to 260 feet) in thickness, and to a vertical depth of close to 300 m (1,000 feet), where it remains open. The pegmatite system consists of a vertically oriented massive petalite pegmatite dyke striking 280 degrees that is flanked by amphibolites containing a swarm of narrower albite and petalite dykes which have all undergone intense deformation in a high strain zone resulting in folding and intense shearing. The Big Whopper exhibits a mineralogical zonation pattern which is complicated by the superimposed deformation that has both folded and stretched the deposit. Drilling has defined a dilute geological resource totaling 7.1 million mt (7.8 million st) grading 1.283 percent Li20, 0.346 percent Rb20, and .007 percent Ta205 over a strike length of 600 m (2,000 feet), and to a vertical depth of 250 m (820 feet), where it remains open. The petalite and rubidium-rich-K-feldspars contained in the Big Whopper all appear to be of superior quality. The grades are consistent with a petalite content averaging 25-30 percent and a rubidium-rich-K feldspar content averaging 15-20 percent. The remainder of the rock consists mainly of albite, several types of mica, and quartz. Accessory minerals include columbitetantalite, cassiterite, apatite, garnet, and gahnite. Market studies show that the deposit is located close enough to existing transportation infrastructure to access rapidly growing, major markets in the glass and ceramics industries, both in the northeastern U.S. and Europe. There are only three competing lithium minerals producers in the world with the Bikita mine in Zimbabwe being the only major producer of petalite. The other lithium deposits produce spodumene, a less desirable lithium mineral. Lakefield Research Limited has successfully designed a process to produce an ultra-pure petalite concentrate containing up to 4.65 percent lithium oxide, and as little as 0.014 percent iron oxide, low levels of soda and potash, and negligible amounts of other trace elements. With these specifications, Avalon will have an excellent quality product for glass-ceramics applications such as Corningware®, CERAN® stove tops, and other thermal shock-resistant products. Lakefield is presently designing the balance of the flowsheet to produce separate concentrates of rubidium-rich K-feldspar, albite, mica, tantalum, tin, and high-purity quartz. Initial test work indicates that the feldspar products will be of exceptional quality. The K-feldspar concentrates contain 11-12 percent K20 and 1 percent Rb20, while the sodaspar contains over 10 percent Na20, and both have very low iron (0.01 percent Fe203). A preliminary economic model shows that with an initial production rate of 90,000 mt (100,000 st) per year, expanding to 170,000 mt (190,000 st) per year over 5 years, the project is capable of generating over CDN $10 million per year in pre-tax cash flow by year 5 on a capital cost of approximately CDN $30 million.

Jan 1, 2001