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"A growing public awareness of work-related diseases such as pneumoconiosis and the impact of this awareness on legislative bodies and on the skilled labour market are reasons why the Canadian mining industry must consider dust control of top-drawer importance. Measurements and standards related to the hazard are necessary to control a dust situation and to avoid excessive risk. The author discusses some of the methods of measurement, standards proposed and terminology used in this developing technology. The purpose primarily is to give a better understanding of the basic advances achieved by those who have applied current knowledge with a measure of success."

Jan 1, 1972

By W. N. Wallinger

The mine and concentrator of Cyprus Anvil Mining Corporation are situated in south-central Yukon, some 120 miles north of Whitehorse. The large lead-zinc concentrator employs conventional crushing and grinding , followed by differential flotation, to produce selective lead and zinc concentrates, as well as a mixed lead-zinc (bulk) concentrate. Since the commencement of operations in 1969, the concentrator has undergone expansions and modifications which have increased the capacity to 10,000 tons per day, and afforded some metallurgical improvements.

Jan 1, 1978

By A. Roy MacLean

"Cape Breton is an island on the eastern extremity of Nova Scotia, Canada. Here, coal mining under the Atlantic Ocean has been a way of life since the early French militia mined coal for heating purposes in 1720. Despite many ups and downs over the intervening years, the coal industry has survived and is now in a favourable position to benefit from the upswing in international coal usage.Mining in Cape Breton Early mining in Cape Breton was done by hand picks and shovels. The coal was loaded into mine cars which were hauled by horses to the main haulage system for transport to surface. Later, compressed-air cutting machines and drills led to the use of explosives to blast the coal so that it could be loaded by hand and transported as above. In 1923, longwall mining (by hand) was introduced. In 1950, the Dominion Coal Company developed the Dosco continuous miner in order to mechanize the longwall coal-getting operation. At this time, conveyor belts came into wide-spread use, along with diesel locomotives to haul mine cars from the longwall face to the main transport system. During this period, coal was also mined by conventional mechanized room-and-pillar equipment such as cutting machines, loaders, roof bolters, etc. This system evolved into the use of the continuous ·miners of today, which are employed in the Lingan Mine room-and-pillar section. However, this method is only satisfactory at shallow depths and gradients. For these reasons, almost all the coal in this coal field will be mined by longwall methods. In 1968, the Government of Canada expropriated the assets of the Dominion Coal Company on Cape Breton Island in order to prevent complete closure of an uneconomic industry by its owners. The government created, by an Act of Parliament, the Cape Breton Development Corporation which now operates the coal mines, coal preparation plants, railway, shipping pier and ancillary services (Fig. 2). Since its inception, the Corporation has closed three mines, opened two new mines, is in the process of developing a third new mine, and has invested heavily in the one mine which remains from its previous owners."

Jan 1, 1985

By Christopher F. Gleeson, Roger D. Thomas

"Abstract - Wawa has long been a center of mineral exploration activity and diamonds have been reported in the area since the 1930s. However, diamond exploration did not begin in the area in earnest until 1991. In 1993, Sandor Surmacz and Marcelle Hauseux of Saminex began a prospecting program in the area which culminated in their discovery of the "Sandor" diamond occurrence in an outcrop on the east side of the Trans-Canada Highway. They subsequently optioned the property to Spider Resources Inc. who obtained the necessary exploration permits from Algoma Central Corporation and undertook an exploration program. The diamonds at the "Sandor" diamond occurrence are hosted in the matrix of a spessartite dike composed of actinolite, biotite, and albite. Of the 64 similar dikes that have been sampled and analyzed to date, eight have been found to contain a total of 231 diamonds. Most of the diamonds are of high quality, although they are small.The dikes are non-magnetic and do not have any other geophysical characteristic that can be used to differentiate them from the adjacent country rock. All of the dikes discovered to date have been found by prospecting or by geological mapping by the Ontario Geological Survey. The dikes do not contain pyrope garnet or chrome diopside, two of the commonly used kimberlite indicator minerals. Instead, low Mg, high Cr, Zn-rich chromite, and ilmenites of variable composition, some of which lie within the field of kimberlitic Mg-ilmenite compositions, characterize the diamondiferous dikes. A regional-scale till sampling program for heavy minerals, and geochemical analysis of the <0.177 mm fraction, was used to further define the areas of occurrence of the spessartite dikes and to indicate additional areas for diamond prospecting. Heavy minerals in till that were most useful include: actinolite, chromite, and ilmenite. Geochemical analyses of the dikes show them to contain elevated concentrations of Ni and Cr and to be enriched in Ba, Co, V, Ca, Fe, and Mg relative to the surrounding rocks. Elevated concentrations of Ni and Cr in till occur overlying and down-ice of known lamprophyre dikes."

Jan 1, 2000

By E. Fried

Cemented paste backfill (CPB) is an innovative tailings management method that consists in returning considerable amounts of mine tailings into the underground mine openings. The filled stopes thus participate to the ground support that allows maximizing orebody extraction and a safer environment for the mine workers. There are also significant environmental advantages of using CPB. Indeed, up to 50% of the concentrator tailings can be backfilled, leading to a smaller volume of problematic waste materials to be managed at the surface. Once the CPB is placed, or when the mine is flooded at its end-life, the backfill is subjected to underground water flows that may leach and spread the pollutants (mainly metals, sulphates, and acidity) which can contaminate the underground waters. The aim of this study is to characterize the leaching properties of CPB material and to identify the cement phases that ensure the metal fixation. A laboratory procedure was implemented consisting in the preparation of various paste backfill mixtures using sulphide-rich and sulphide-free materials, different types of binder, and mixing waters having various sulphates, copper and zinc concentrations. After 90-days curing time, the samples were submitted to column leaching tests. The CPB materials were flushed each day with 100 ml of deionised water during 100 days. The collected leachates were then analyzed for pH, Eh, electric conductivity and chemical composition. For some samples, a differential acid neutralisation test was carried out. The objective of this experiment is to dissolve selectively the hydrated phases by adding incremental acid concentrations. By analyzing punctually the equilibrated solutions, the composition of the dissolved phases and their metal content can be estimated. The leaching test results showed that the pH of the leachates remains alkaline during the test period. When the pH decreases under 10 (after 30 days), different behaviours in terms of chemical element release (especially for zinc) were observed. During the test, the oxidation of pyrite seems to slow down, probably due to passivating phenomena. Moreover, the differential acid neutralisation test results allowed a better understanding of the CPB mineralogy and the Zn-bearing cement phases. Zinc and the other metals seem to be fixed within a calcium-magnesium silicate.

May 1, 2007

"Polycom, a new approach to ore processing based on pressure comminution, is obviously a very attractive alternative to conventional processing methods.Since a full-scale pilot plant was commissioned in 1986, more than 125 commercial installations, with capacities up to 1000 t/hr, have gone ahead.Already successfully used in processing cement clinker, limestone, coal, and other minerals, Polycom high pressure grinding results in:o Significantly reduced capital costs, because smaller units can be used m new installations;o Capacity increases of up to 100% in existing facilities; and o Operating economies that include energy savings of 20% or more, and reduced wear parts consumption.1. IntroductionAutogenous or semi-autogenous mills in conjunction with rod or ball mills are used with preference for ore processing. Most ball mills are of closed-circuit design and operate with mechanical classifiers (spiral or rake classifiers) or hydrocyclones. In other words, the ores undergo wet primary grinding, since slurries are required for the downstream separation stages anyway. This paper presents a new grinding system based on high pressure comminution of ores. This grinding process allows:- Energy savings of up to 20 % or more- Capacity increases of up to 100 % and more- Reduction of wear costs- Smaller units for new installation and thus- Reduced investment costsThese advantages are highly interesting for both new installations and conversion projects, particulary in cases where an increasing hardeness of the ore, i.e. rising Bond Work Index, reduces the output of the plants or where the metal assay of the ore decreases and the capacity of the existing systems has to be increased. POLYCOM high-pressure grinding rolls have established themselves with great success already for grinding cement clinker, granulated blast furnace slag, limestone, cement raw materials, coal and other materials.Meanwhile more than 250 high pressure grinding rolls have been installed worldwide. Capacities up to 1.000 t/h with roller diameter up to 2.8 m and drive units up to 2.400 kW are installed."

Jan 1, 1991

By D. Yuan, M. Sitter, S. St. Jean, M. Collins

The Ambatovy Joint Venture comprises an operating lateritic nickel mine, ore slurry pipeline, pressure acid leach plant and nickel refinery in Madagascar. The hydrometallurgical process selected by Sherritt for treatment of the Ambatovy ore is a long-term, sustainable approach to producing nickel. Sulphur, used to prepare hydrogen sulphide, which is used to produce mixed sulphide intermediate, is recovered in the refinery as ammonium sulphate fertilizer. Additional sulphur is used to generate sulphuric acid for treatment of the ore in the high pressure acid leach (HPAL) step; fossil fuel consumption is minimized by using the heat generated from the exothermic reaction between sulphur and oxygen in the acid plant to produce power and steam. Steam consumption is minimized by design of efficient flashing and preheat systems for HPAL, while the high temperature of the HPAL step serves to minimize acid consumption. Fossil fuel consumption by the operation as a whole is further minimized by locating the leach plant and refinery near the port of Toamasina and utilizing a 220 km slurry pipeline to transport ore from the mine to the leach plant. In addition, Ambatovy has demonstrated a strong commitment to sustainability programs such as the biodiversity management program at the mine and local procurement in Madagascar. In this paper, the hydrometallurgical process for nickel and cobalt recovery from Ambatovy ore is described, along with highlights of Ambatovy’s approach to sustainability in Madagascar.

Jan 1, 2015

By Roger J. Berdusco

Kaiser Resources Ltd. owns and operates a 5-million-tonper- year open-pit and hydraulic coal mine near Sparwood in southeastern British Columbia. Since 1969, Kaiser has maintained a field-scale reclamation program dedicated to the reclamation of disturbances associated with past and present mining and exploration activities . Since that time, over 1400 acres have been treated using modified forestry and agricultural techniques with encouraging results.

Jan 1, 1978

By P. D. R. Maltby

"With the narrow vein structure of Nova Scotia gold deposits, selective mining is rarely possible and mill heads will be too low (below 0.10 oz per ton of gold) to support a conventional mill of up to 1000 ton per day capacity at present gold prices. The recent operation of a small 100 t.p.d. mill at Cochrane Hill using fine grinding - leaching - filtration supported this assertion. Milling costs exceeded $25.00/ton of feed mainly due to high capital, labour and maintenance costs.Accordingly, since 1981, efforts have been directed towards the development of a cheap gold extraction process in terms of both capital and operating costs. The main criteria is to produce gold below US $200 per oz including all administration, mining and process stages. This paper describes such a process development for Cochrane Hill. LOCATION AND HISTORY OF THE PROPERTYThe Cochrane Hill property is located about 8 miles North of Sherbrooke, N.S. on highway No. 7. Sherbrooke is about 180 miles east of Halifax. Gold was originally discovered at Cochrane Hill in the 1860's. Early work consisted of trenching. In the 1930's a small shaft was sunk to about 80 feet and some tonnage treated using a stamp mill with gravity concentration of gold.Northumberland Mines Ltd. acquired a 70% interest in the property in 1977. Subsequent drilling indicated a potential zone of gold mineralization with a drill-indicated tonnage of one million tons having a grade of 0.07 ounces per ton of gold (all high assays cut to 1 oz) down to a depth of 300 feet recoverable by open pit mining methods. In broad terms, the goldbearing zone is about 50 feet wide and 800 feet long and dips at about 70°."

Jan 1, 1984

By M. J. Michaud, M. J. Lavigne

"A cornerstone of any successful mining project is an understanding of the mineral assemblage and metal distribution comprising the deposit. Knowledge of the precise mineral/ metal zoning enables an operation to utilize different mining and processing methods optimized for different parts of the deposit. The Lac des Iles mine, located in northwestern Ontario, is one operation that depends on a good understanding of these issues. Current resources for the Roby Zone total 94.1 Mt grading 1.66 g/t Pd, 0.18 g/t Pt, 0.14 g/t Au, 0.062% Cu, and 0.053% Ni.The Roby Zone occurs within the gabbroic portion of the Lac des Iles intrusive complex and consists of three compositionally and texturally different ore types with variable PGE, base and precious metal contents. PGE occur as sulphides and bismuthotellurides in net-textured sulphides, coarse sulphide blebs and as finegrained inclusions within secondary silicates.Knowledge of the precise mineral/metal zoning has directly and indirectly improved several operational aspects, including resource modelling, mining, and processing. For example, metallurgical recoveries have been increased by up to 3% to 5% and concentrate grades have increased by up to 100%. IntroductionLac des Iles Mines Ltd., a wholly owned subsidiary of North American Palladium Ltd., owns and operates a 3000 t/d open pit mine and concentrate facility, located 100 km north of Thunder Bay in northwestern Ontario. The Lac des Iles PGE-gold-copper-nickel mine has been in commercial production since 1993 and in 1997, produced 1.8 million grams of palladium, 127 000 g of platinum, 114 000 g of gold, 438 000 kg of copper and 354 000 kg of nickel (North American Palladium Ltd., 1998).Under the Industrial Research Assistance Program (IRAP), a two-year study of the mineralogy of the Roby Zone was undertaken with a goal of improving the profitability of the mine. Geological mapping, petrography and geochemistry of the Roby Zone were completed during this study. Utilization of the detailed mineral/metal zoning identified as part of this study was implemented at the mine and shown to positively impact many operational aspects including mining and processing."

Jan 1, 2003

By M. Maccagni, J. Nielsen

"Engitec developed the EZINEX® Technology some years ago to recover zinc from oxidized secondary sources. This process works at neutral pH and can take into solution any kind of metal, but iron is rejected and remains in the leach residue. Engitec has also developed the FLUOBORATE System, which is able to recover lead and copper from relevant concentrates. Some iron is leached into solution, but it is controlled through a solution purification bleed treatment. In this paper, we present the two above mentioned technologies. They are very different with regards to the chemical environments and the methods used to control the build-up of iron in solution, but both systems are suitable to treat iron bearing feeds.INTRODUCTIONIn the design of hydrometallurgical processes, the most important issues are the water balance, the filtration and the control of impurities. This is particularly important when the process includes an electrowinning unit. Iron has been one of the most problematic elements to remove, especially in acidic environments.Engitec Technologies has developed several hydrometallurgical processes divided in two different electrolyte lines: the Fluoborate Technology for the recovery of lead and copper from primary and secondary sources and the Ammonium Chloride System based on a chloride electrolyte for the recovery of different non-ferrous metals, among which zinc and lead are the most important. In both cases, iron is present in the feed and needs to be eliminated from the solution. It is not a problem for the quality of the metal produced, but when present in solution, it consumes the basic electrolyte reducing its free concentration which is very important both for both the leaching and electrowinning unit operations. Both process systems are very peculiar, the fluoborate case being much more intriguing."

Jan 1, 2016

By D. Simon

This paper studies the effect of binder type and content on the early age development of cemented paste backfill (CPB). The early age development of the mixtures is analyzed using scanning electron microscopy (SEM) and energy dispersive spectroscopy (EDX). These tests show that the early age development of CPB is sensitive to changes in the paste composition. The properties of the CPB depend on the cement content and hydration time. The quantity of hydration products increases with hydration time for all of the mixtures containing cement. However, the high cement content pastes (at least 50% PC) exhibit complete coverage of the PC grains and mine tailings by C-S-H, while the low cement content paste shows scattered coverage of the PC grains and mine tailings and a higher void ratio.

May 1, 2007

By Raj K. Rajamani, Sanjeeva Latchireddi, Dave Plummer, Stieger. Julius

"The Cortez SAG mill liner design was recently modified to improve the mill operating energy efficiency. In addition to the expected benefits, the design change unexpectedly played a significant role of verifying the proposed grinding circuit expansion for the Cortez Hills project as well as illustrating current SAG mill bottlenecks. This paper will discuss the evaluation that addressed operator and maintenance observations, historical PLC data, and “crash stop” observations to calculate charge motion, packing between lifters, and slurry transport through grate and pulp lifters. The performance of the new shell and discharge end liner design will also be discussed as well as their role in the possible grinding circuit expansion.INTRODUCTIONCortez Gold Mines commenced operation in 1969 with its Mill #1 rated at a nominal 2,000 tons per day. Mill #1 was a conventional rod mill/ball mill circuit followed by an 8-stage CIP circuit. In the early 1990s the Pipeline deposit was discovered and subsequently Mill #2 was built to process the increased ore volume. Mill #2, commissioned by mid-1997, was a nominal 10,000 tons per day SABC circuit followed by an 8-stage CIL circuit for oxide gold ore. Operating and commissioning details of this plant have been published elsewhere (Powell, 1998). By late 1998, there was not enough ore volume to support both mills so the smaller, higher operating cost Mill #1 was put under its current care-and-maintenance status. A simplified flowsheet of the current mill is shown in Figure 1."

Jan 1, 2007

By B. Panton, J. Carvalho, E. T. Brown

"A major consideration in the design of high capacity tiedown anchors for dam, bridge and tower foundations is the tensile resistance of the rock mass to pullout, typically as a result of overturning moments or hydrostatic uplift. Rock mass pullout capacity for installed anchors is developed from the tensile strength and fracture propagation properties of intact rock, the orientation and physical properties of the discontinuities and anchor confinement at depth. The typically assumed, but generally conservative, design approach is to calculate anchor pullout capacity using the dead weight of a uniformly shaped inverted “cone” with an assumed initiation point and breakout angle. In some cases, some tensile or shear strength is considered across the area of the assumed pullout cone, however, these strength estimates are based primarily on based on limited historic testing data, empirical relationships for rock mass strength developed for other applications, and engineering judgement.As an alternative to the current foundation anchor design method, this paper presents a new approach to the rock cone pullout problem using Discrete Fracture Networks (DFN) combined with numerical simulations. The simulations presented in the paper investigate the influence of fractures in a synthetic rock mass on ultimate anchor strength. In addition, the global influence on fracture network statistics on rock mass pullout failure is also discussed and it is contended that some of the aleatory and epistemic uncertainty inherent in the design of rock anchors can be reduced by considering fracture statistics in anchor design."

Jan 1, 2015

By K. B. Hodgins, P. Ouellette

"The North American mining industry faces challenging emissions regulations in the coming years with the introduction of new standards for off-road diesel engines. In order to remain competitive, industry stakeholders must invest in new technologies that are economically and environmentally sustainable.Westport Innovations Inc., Vancouver,British Columbia, has developed high-pressure direct injection (HPDI) technology that allows diesel engines to run primarily on natural gas with no intrusive engine modifications while reducing emissions of nitrous oxides (NOx), particulate matter (PM), and CO2 with no loss in performance. This is accomplished through late-cycle, high-pressure direct injection of natural gas into a diesel engine combustion chamber at the end of the compression stroke. A small amount of diesel fuel is injected first to initiate combustion, followed by the natural gas fuel main injection. The diesel cycle and its operating characteristics are fully retained including high combustion efficiency, lowspeed torque, high-power output, no engine knock, and fast response to load changes. Natural gas has not been an attractive fuel alternative in mining operations due to the reduced performance associated with spark ignition engines and the added weight and space required for compressed natural gas tanks. However, liquefied natural gas (LNG) can be stored with less impact on weight and space than compressed natural gas (CNG) by virtue of its increased energy density over CNG.Westport has applied HPDI technology to the Cummins QSK series engines for high horsepower applications such as power generation and mine haul trucking. HPDI can also be applied to other engine manufacturer platforms and market applications. Westport is interested in demonstrating the unique characteristics of HPDI in mine haul trucks to show diesel performance with low emissions levels using low-cost LNG fuel.Retrofitting a Tier 1 engine with HPDI would provide emissions reductions below the EPA 2006 Tier 2 standards while maintaining the performance and efficiency of the Tier 1 platform. The longer-term target is the Blue Sky voluntary standards of 3.8 g/kW-hr (2.8 g/bhphr) of NOx + non-methane hydrocarbons (NMHC), and 0.12 g/kW-hr (0.09 g/bhp-hr) of particulate matter (PM) and future standards. Typically, an HPDI engine is capable of reducing NOx emissions by 40% over diesel operation at the same efficiency. On a mining truck meeting Tier 2 standards, this NOx reduction would translate into NOx emissions approximately 14 t per year lower than under diesel operation. PM emissions are typically reduced by some 60% with HPDI fueling, which would translate into a yearly reduction of 650 kg. Similarly, engine-out greenhouse gas (GHG) emissions are reduced by 21%, resulting in a yearly reduction of approximately 950 t per vehicle.Above those of emissions reduction, efficient natural gas usage in mine haul operations would offer significant benefits in terms of fuel cost savings, which may be further combined with monetary emission credits. HPDI technology would enable operators to exercise environmental stewardship while gaining a competitive advantage in advance of new Tier 2 and Tier 3 emissions regulations. The advantages of natural gas use among mine haul truck operations can be replicated across a broad range of engines and applications."

Jan 1, 2005

By H. Hitchen

THE object of this paper is to present the various facts that l1ave been revealed during lengthy investigations into the performance of all types of ropes on different hoisting installations. It then goes on to suggest means by which most of these findings could be usefully employed to obtain more economical rope lives with increased safety. SHAFT HOISTING ROPES Four basic designs of ropes are now employed for hoisting duties: (1) Six-strand, round strand ropes with fibre cores. (2) Six-strand, triangular strand ropes with fibre cores. (3) Non-rotating, multi-strand ropes. 0) Locked coil ropes. Round Strand Ropes (Figure 1) Very solid and reliable ropes can be obtained with this simple geo-metric design of strand. 1&apos;1?iangula1? Strand Ropes (Figure 2) Owing to the fact that the wires in the strands are bent over a triangle, they do not seat quite so solidly as when they are bent over a circular core wire, as is the case with

Jan 1, 1963

By J. R. Goode

"Coarse ore sorting is here defined as the physical separation of a mixture of coarse (+3/8 inch) ore particles into two or more separate groups of total value greater than that of the unsorted ore. An ore will probably be sortable if the geology of the orebody and the mining practices employed meet conditions outlined in this paper.The paper points out how sorting can substantially reduce tonnage variable operating costs because sorting can double the mill head grade of amenable ores by rejecting waste rock from the mine output. The effect of sorting on ore reserves is outlined. It is also suggested that sorting is a low cost alternative to conventional expansion.The mode of operation of the Ore Sorters Kadel 13 Photometric and MK VI A Radiometric sorters is detailed. The report concludes with detailed descriptions of the photometric sorting plant operated by the Doornfontein Gold Mining Company is South Africa and the Radiometric Sorting Plant presently under construction at the Schwartzwalder mine of Cotter Corporation in Colorado."

Jan 1, 1975

By Claude Deveau

"Studies on the performance of Falcon batch type concentrators treating ultrafine tantalum at Tanco have revealed that very fine heavy minerals are concentrated within certain areas of the concentrate bed. This information led to the design of a bowl which would allow entrapped lighter low grade particles to escape while providing more space for heavier particles to be recovered in the bed.Numerous tests were then completed with a modified batch-type and non-fluidized Falcon bowl in which the diameter of the discharge lip was adjusted downward manually in steps. This allowed for the gradual building of a higher grade concentrate bed.This work ultimately led to the design of a new Falcon with an automated continuously variable lip. In April 2005, Tanco commissioned the first Falcon UF600.This paper will discuss laboratory scale results and also plant performance of the Falcon’s UF technology.INTRODUCTIONTantalum Mining Corporation of Canada, also known as Tanco, is a wholly owned subsidiary of Cabot Corporation based in Boston, Mass. Operating since 1969, the underground highly mechanized room and pillar operation produces tantalum, lithium and cesium minerals and is located a 2 hour drive east-northeast of Winnipeg Manitoba, Canada.At Tanco, tantalum is recovered using conventional gravity concentration, enhanced gravity concentration and flotation. This paper will discuss how the need for improved equipment to treat very fine tantalum particles was filled by a machine which was modified to the point of creating a completely new technology.In November 2003, Tanco began the investigation for the potential use of a high g-force smooth walled concentrator for treating ultra fine tantalum produced by its flotation circuit. Until then, the tantalum flotation concentrate had been treated by a circuit which consisted of a Mozley Multi-Gravity Separator 902 (MGS), a Mozley MGS 900 and a Bartles cross belt concentrator. Through QemScan analysis, it was found that the majority of the losses from this circuit were of an extremely fine nature which exceeded the recovery limits of equipment on hand. Mean particle size of the tantalum losses was less than 10 µm."

Jan 1, 2006

By Emmanuel Henry

Few industries are more challenged by technical, political and market uncertainty than the mineral industry. Technical uncertainty in mining projects concerns the volume and quality of the resource, the processing and metallurgical parameters, the production efficiency, etc. Political uncertainty can take diverse forms and includes possibilities of change in the taxation system, risk of expropriation and risk of social instability or war. Market uncertainty depends on the market structure of the commodity; price and demand volatilities are the most common sources of market uncertainty. Intensive feasibility studies including these uncertainties and risks are required before investing up to billions of dollars in the development of a new mine. Current feasibility studies are often based on a single (or very few) mean geological scenario and simplified price profiles along the life of the project. Yet, strategic decisions, for example, the level of investment in exploration and metallurgical studies, adoption of a flexible, but more costly, mine design and risk-sharing strategies are made at an early stage. Over the last twenty years, Real Option theory has emerged as a unifying framework enabling strategic planning under uncertainty (technical, political and market). Geological and market variances (second order statistics) are pivotal for proper uncertainty quantification. The present study explores the possible benefits of combining modern geostatistical tools and financial techniques for project management. More precisely, the following questions are examined: Is geological uncertainty really an issue? Can we combine geological and price uncertainties in a unifying Real Option framework? A simple example aimed at illustrating the concepts involved is presented.

May 1, 2003

By John S. Stevenson

ZEBALLOS is a relatively new mining camp. It is on the west coast of Vancouver island, approximately 195 nautical miles northwestward from Victoria. Previous to 1934, a small amount of placer gold had been recovered from the Zeballos river and tributary creeks. However, it was not until the winter of 1934-35, when shipments of high-grade gold ore were made from the property of the White Star Gold Mines, Limited, that lode gold mining really began. Since then, several new mines and many promising prospects have been found. Milling in standard sized mills only commenced late in 1938, when the 75-ton mill of Privateer Mines, Limited, and the 50-ton mill of Spud Valley Gold Mines, limited, were first turned over. The most striking feature of the camp is the high-grade quality of the ore as usually mined. At one property, the ore along a drift 650 feet long has ranged from 5.8 ounces per ton to 17.5 ounces, over average vein-widths ranging from 8.3 inches to 14.5 inches in selected blocks along the drift. One . high-grade shipment of 196.6 pounds of ore from the same property contained 142.877 ounces of gold. The present paper deals only with that part of the area in which mining operations are most active, namely the main Zeballos River valley and its tributaries, Spud and Goldvalley creeks. During the summer of 1938, prospecting was carried on beyond this circumscribed area. The geology and early developments in the area have been described in the following reports: (1) CLOTHIER, G. A., Annual Report of the British Columbia Minister of Mines, 1929, p. 376; 1930, p. 441; 1932, p. 205; and 1933, pp. 252-254. (2) GuNNING, H. C., Geological Survey of Canada, Summary Report, 1932, Part A-II, pp. 29-50, Zebaltos River Area, Vancouver Island, B.C. (3) STEVENSON, John S., Annual Report of the British Columbia Min-ister of Mines, 1935, pp. F-38-40. ? ( 4) BANCROFT, M. F., Geological Survey of Canada, Memoir 204, 1937, Gold-Bearing Deposits on the West Coast of Vancouver Island Between Esperanza Inlet and Alberni Canal. (5) STEVENSON, John S., British Columbia Department of Mines, 1938, Lode-Gold Deposits of the Zeballos Area. (6) MAcDoNNELL, G. F., The Privateer Mine, Zeballos; The Miner, Van-couver, B.C., December, 1938.

Jan 1, 1939