Search Documents

By M. Kumral, E. Dilhuydy, B. Ozdemir

"In-pit crushing and conveyor (IPCC) systems have become increasingly popular in the mining industry as an alternative to truck-and-shovel systems. Deciding whether to haul waste rock by truck or IPCC represents an important gap to be investigated in semi-mobile IPCC systems. A cost analysis is presented to evaluate the feasibility of crushing and conveying waste material in IPCC systems, along with sensitivity and risk assessments through Monte Carlo simulation. Although the capital expenditure is higher, results showed waste crushing will be feasible in deep pits and over long mine life and haul distances.RÉSUMÉ La popularité des systèmes de concassage et de transport dans la fosse minière (IPCC, de l’anglais In-pit crushing and conveyor) n’a cessé de croître dans l’industrie minière ; ils constituent en effet une option intéressante de remplacement des systèmes par camions et pelles mécaniques. Le choix entre le transport des stériles par camions ou par IPCC est encore difficile à faire et devra faire l’objet d’une étude approfondie au niveau des systèmes d’IPCC semi-mobiles. Une analyse des coûts est présentée pour évaluer la faisabilité du concassage et du transport des stériles par les systèmes d’IPCC, de même que des évaluations de la sensibilité et des risques par le biais de la simulation de Monte Carlo. Si les dépenses en immobilisations s’avèrent être plus élevées, les résultats ont cependant montré que le concassage des stériles sera envisageable dans des fosses profondes ainsi que sur une longue durée de vie et de longues distances de transport. INTRODUCTIONThe mining industry is currently facing many challenges such as low commodity prices, increasing environmental concerns and regulations, lower grades, deeper mines, and greater waste-rock quantities. As a result, the profitability of mining operations has decreased, with many mines stopping or suspending operations, and many new projects being postponed. Mining companies have therefore focused on improvements and innovations to increase the cost effectiveness of operations, for example, increasing production capacity to take advantage of the economies of scale (Crowson, 2003) and decreasing the unit operation cost. Changes in production capacity force mining companies to evaluate alternative material handling systems.During the past few decades and within material handling systems, significant improvements have been made to truck performance and capacity. Consequently, operating expenditures (OPEX) associated with fuel and maintenance have risen swiftly. In a mining operation, truck hauling systems now represent 40–50% of the capital cost and approximately 45% of the OPEX (Tutton & Streck, 2009). Additionally, material transportation costs are expected to increase due to longer haul distances arising from deeper and larger mines (Fleet et al., 2015). Finally, large fluctuations in fuel prices result in high risks associated with truck OPEX. According to the United States Energy Information Administration (2015), the cost of crude oil—the largest component of the retail price of diesel fuel—increased from US$24.31/barrel in 1986 to US$46.92/barrel in 2016, peaking at US$151.72/barrel in 2008 (Macrotrends, 2016)."

Jan 1, 2017

By Troy Boisjoli

Since its discovery in February 2014, the Arrow Uranium Deposit has undergone rapid development through aggressive and systematic drilling programs and is now being progressed through advanced engineering and permitting. Based on the 2018 NI 43-101 Technical Report, the Probable Mineral Reserve estimate totals 234.1 million (“M”) pounds (“lbs”) triuranium octoxide (“U3O8”), contained in 3.43 M tonnes at an average grade of 3.09% U3O8. The proposed processing plant at the Rook I Project (the “Project”) will be capable of producing up to 31 M lbs of U3O8 per year, with a projected mine life of nine years based on the Probable Mineral Reserve estimate, although NexGen is permitting a 24-year operating life at the Project assuming the majority of Inferred Mineral Resources are upgraded to Indicated Mineral Resources with continued mineral resource development drilling. The Project will be developed through transverse and longitudinal longhole mining methods, pairing primary and secondary stoping techniques with a high degree of equipment mechanization which will provide a combination of good productivity, high extraction, and stable back support. This next generation of uranium operations combines the use of advanced tele-remote equipment and instrumentation with a low-cost bulk mining method and a best-in-class tailings management practice, effectively reducing operating costs and setting a new standard for elite environmental and social practices.

Jan 1, 2020

By J. Boldy

This paper is an attempt to place Canadian Precambrian volcanogenic deposits in perspective, by examining and compiling data regarding certain neglected fundamentals of size, grade, value, frequency distribution and spatial density. The discovery roles played by various exploration methods are compared and contrasted, and. using empirical methods, the probabilities of discovery are discussed, combined with the use of an effective 'cost-per-target' program. From these basic observations, realistic exploration judgments may be made. Using similar methodology, this format may be applied to other types of deposits. Precambrian volcanogenic deposits occur in a natural geometric progression in size. They number 110, of which 70% are pre-producers, producers or past-producers. These deposits are bonanzas and generally have a 'net pre-smelter' value of between $43 and $62 per ton. The statistically typical deposit is that which occupies the modal position, has 400,000 tons of ore, a value of $20 million and occurs with a frequency of 40%. A median deposit has 1.4 million tons of ore, a value of $70 million and occurs with a frequency of 15%. An upper-decile deposit ha s 13.3 million tons of ore. a value of $750 million and occurs with a frequency of 6.5%. The major, mid-upper-decile deposits have a minimum of 50 million tons of ore, a value of $3 billion and occur with a frequency of 4%. Five major volcanogenic deposits occur in the Precambrian and account for 54% of production. This contrasts with 55 deposits (all below the median) which account for 3.9% of production.

Jan 1, 1977

During heap leaching of secondary copper sulphide ores operated at low heap temperatures and high levels of leach solution salinity, copper recovery is usually unsatisfactory, due to a slow chemical and bacteriological leaching of the covellite minerals either formed from leaching of chalcocite or naturally occurring in ores. A laboratory test program was conducted to investigate the effect of leach solution temperature in the range of 20 to 50°C on copper extraction during stirred reactor, bottle roll, and short column leaching of fresh or heap leached secondary copper sulphide ores. It was demonstrated that increasing heap temperature is an effective approach for improving recovery of copper from secondary copper sulphide ores. A review of the technologies available for heating heap leach solution or decreasing solution salinity to improve copper recovery from secondary sulphide ore indicates that an integration of copper concentrate pressure leaching with heap leaching is potentially a cost-effective approach. A copper flotation concentrate sample was tested through pressure oxidation with the use of heap leach solutions of varying strengths for the repulping of the concentrate in order to examine its effect on pressure oxidation performance. The test results indicate that use of heap leach solution of high salinity in the pressure oxidation process does not cause a negative impact on the process performance for copper extraction, sulphide oxidation, and recovery of gold (if present) from pressure leach residue, and has additional advantages of removing the bacterially inhibitory aluminum from heap leach solution and generating more acid and ferric iron in the pregnant leach solution. A flowsheet configuration for full integration of the copper concentrate pressure oxidation with heap leaching of secondary copper sulphide ore is proposed and discussed.

Jan 1, 2014

By F. Baczek, S. S. Rocks, D. Chaiko, C. Eyzaguirre, S. Asihene, T. Walters

The majority of efforts to improve primary copper sulfide leaching have focused on solution chemistry, temperature, O2 pressure, ultra-fine grinding, the use of catalysts, etc. Historically, very few studies have focused on the solid/solution interface. A new, patent pending approach to catalyzed, copper sulfide leaching has been discovered by FLSmidth that enables manipulation of the 2-D semi-conductor properties of chalcopyrite surfaces to the benefit of higher electrochemical reactivity. Copper dissolution rates are then further accelerated by incorporating a Stirred Media Reactor (SMRt) into the process. By using minute amounts of Cu2+ to "pre-activate" chalcopyrite, leach times have been reduced from >20 hours with incomplete Cu dissolution to <2 hours with 98+% Cu dissolution at 80°C. The pre-activation process takes only minutes to complete at temperatures of 80°C or less. The total atmospheric leaching process, incorporating the pre-activation and Stirred Media Reactor is compatible with existing SX/EW processes. Results of batch leach testing are presented and possible mechanisms are discussed.

Jan 1, 2015

By A. R. Hekmat

Hypereutectic Al-Si alloys are used in applications that require high resistance to wear and corrosion, hardness and low coefficient of thermal expansion, To maximize the properties of these alloys, semi-solid processing can be utilized to modify the solidification structure of the primary silicon crystals as well as to reduce microsegregation and porosity, The transformation and spheroidization of primary Si crystals by shearing in the semi-solid state are not fully understood as they precipitate in the presence of other alloy phases, The objective of the present work is the determination the rheological characteristics of A390 (Al-17%Si-4,5%Cu-0.5%Mg) alloy using a Couette type (Haake RV12) viscometer and examining the microstructural evolution during continuous cooling and isothermal shear rate experiments, The effect of shear rate, solid fraction (temperature) and morphological evolution of the silicon crystals are investigated.

Jan 1, 2005

By B. Erdem, N. Çelebi

An important problem associated with tandem dragline systems is that of matching the productive capability of individual draglines in the combination. In this paper, a dependence mechanism among draglines in a tandem system is described, and possible consequential problems in a poorly-matched system are defined. The rate of linear advance and the cost of stripping are determined as two major indications for an efficient operation. The proposed decision criteria and the underlying mechanism to select a synchronous couple are introduced and used in simulating tandem dragline systems. The developed model is tested on a hypothetical strip mine where pullback stripping is applied with a tandem dragline system.

Jan 1, 1999

By A. R. Pasieka, J. C. Wilson

"Compressed air still remains an essential source of power in underground hardrock mining. As a power medium it has a high convenience factor, although, in many cases, it is expensive to generate and maintain. Until new methods of breaking rock and/ or satisfactory alternatives to air-driven rock drills are developed, compressed air is indispensable. It is essential to utilize this source of power to a maximum by keeping all pneumatic tools supplied with air in adequate quantity and at optimum pressure.In search of the optimum operating air pressure, con-trolled drilling tests were undertaken at dynamic pressures ranging from 90 to 140 psi.Test results show the effect of increasing air pressure on: the performance of various jackleg drills at varying pressures, the life cost of drill steels and TC bits, and drilling efficiency at varying pressures. From the fore-going, a criterion is proposed for selecting efficient rock drills, and, also, optimum air pressure at each mine can be determined for its particular conditions."

Jan 1, 1966

By J. Walker, G. E. Kim

Since May of 2000, Mogas Industries, in partnership with F.W. Gartner Thermal Spraying Co. and using the services of Perpetual Technologies, has invested time, energy, and resources towards developing novel ball valves for high-pressure acid-leach (HPAL) service. In addition to developing new valve designs, an aggressive coatings development effort has been undertaken to improve the protective quality of the coatings so as to enhance the performance and extend the life of valves in severe HPAL conditions. In 2001, Mogas Industries qualified and applied a nanostructured titanium oxide (n-TiO2) coating for gold and nickel/cobalt HPAL services. The n-TiO2 coating provided dramatically superior protection against abrasive and erosive wear, fared very well against high-pressure autoclave corrosion testing, and has performed well in HPAL service.

Jan 1, 2004

By Paul Guliov

Industrial clays, including a variety of bentonites and kaolinbased clays in southern Saskatchewan are hosted by Late Cretaceous and Early Tertiary sediments. Ofparticular significance are the deposits of swelling bentonite in the Cretaceous Bearpaw Formation and the kaolinitic clays of the Cretaceous Whitemud and Paleocene Ravenscrag Formations. Swelling bentonite is currently produced in the Wilcox-Truax area by Canadian Clay Products Inc. and yields at least seven different commercial products for a variety of applications. Kaolinitic plastic clays, including ball clay, stoneware and earthenware clay, as well as kaolin in southern Saskatchewan, have a long history of development and use. Products include common and face brick, refractory bricks and other shapes, chinaware, pottery, sewer pipe, chimney flue linings and tiles. Currently clay production is for out-of-province brick manufacturing and for pottery. Recent research and improved technology combined with expansion in certain areas of the global clay industry generally hold promise for a resurgence of a clay-based industry in Saskatchewan. Products of particular promise include: clay tiles; kaolin fillers and extenders; and aluminum as well as related by-products from kaolinitic clays based on the carbochlorination process.

Jan 1, 2001

By A. Pawelczyk, D. Hreniak, E. Zych, W. Strek, K. Grabas, A. Ostrowski

"Nowadays recycling became an important rare earth elements (REE) source, which allows to reduce their demand for extraction from natural deposits. At present, the used fluorescent lamps and old type TV or computer monitors kinescopes are selectively collected and undergo processing in the system of recycling. It has been estimated, that utilization of such waste would be sufficient to cover the REE demand for the next 5-8 years. In the developed process, the luminophores were separated from the electronic and electronic waste materials, and processed by hydrometallurgical methods to obtain concentrated REE in form of oxides. INTRODUCTIONInternational Union of Pure and Applied Chemistry (IUPAC) defines the rare earths as a set of seventeen chemical elements, specifically the fifteen lanthanides plus scandium and yttrium. They are considered the most important indicators of the developed technologies and techniques. Rare earths are used, amongst others, for the production of magnetic and superconducting materials, ceramics, lighting, catalytic converters, advanced electronics and alloys. The demand for RE continually increases, similarly to many other primary raw materials. Globalization, the growing demand for limited resources of raw materials, the policy of the countries controlling the raw material market and the economic crisis became a spur for new programs of socio-economic development of the European Union (EU), with particular regard to EU safety for commodities in intermediary as well as long-term horizons (COM 2008), COM 2011).EU countries import most of metallic and chemical raw materials important for their economy. In 2008 a detailed program named Raw Material Initiative was announced. The increase in demand for most raw materials having special importance for the development of technology, and access to of raw materials security of supply affect the future economies of the UE member states and other developed countries."

Jan 1, 2012

By J. D. Clucas, N. Verbaan, T. Grammatikopoulos, D. B. Dreisinger, C. Forstner, M. Aghamirian

"Search Minerals is currently exploring the Port Hope Simpson (PHS) Rare Earth Element District in southeastern Labrador, Canada. The Foxtrot Rare Earth Element (REE) Project in the PHS District has a 43-101 resource estimate consisting of 3,410,000 tonnes of Indicated Mineral Resources and 5,850,000 tonnes of Inferred Mineral Resources. The indicated and inferred resources contain 1.07% and 0.98% total rare earth element oxide (including yttrium), respectively. The dysprosium and neodymium grades are particularly attractive at 218 ppm Dy2O3 and 1687 ppm Nd2O3 for the indicated resources and 208 ppm Dy2O3 and 1494 ppm Nd2O3 for the inferred resources. The mineralization remains open along strike and at depth and is only one of a number of attractive exploration targets in the Port Hope Simpson area. The REE minerals fergusonite and allanite are present. The ore can be beneficiated by gravity, magnetic separation and flotation to a recovery of +80% for the individual REE. Acid bake and water leaching may be used to extract REE into solution for subsequent purification and recovery. The extraction range for single stage leach tests were 91-96% for Nd, 84-87% for Tm and 92-94 % for Dy with modest acid consumptions. INTRODUCTIONSearch Minerals Inc. (Search) is exploring the 100% owned Port Hope - Simpson District in Labrador, Canada for rare earth elements (REE). This District is approximately 135 km by 12 km in size, and is highly prospective for heavy and light rare earth elements. A total of 11 REE prospects have been discovered in the District to date, including the Foxtrot. In addition, Search is exploring in the 100% owned Henley Harbour region and has joint ventures with Quest Rare Minerals in the Strange Lake region, and with Great Western Minerals Group in the Red Wine complex, all in Labrador. These exploration locations are illustrated in the Figure 1. The focus of this paper is the investigation of the mineralogy and processing of Foxtrot REE materials. The Foxtrot resource falls within the claims held by Search in the Port Hope Simpson REE District. The infrastructure available at Foxtrot is excellent with a deep water port, air strip and road and power infrastructure at Port Hope Simpson. Over $7 Million has been spent to date on exploration and development of the District. The Foxtrot has been explored using prospecting geochemical methods, geophysics (airborne and ground), channel sampling of surface outcrops, mapping and three phases of drilling (18,934 m total)."

Jan 1, 2012

By Omero Alonso-Gonzalez, Sergio Haro-Rodriguez, Ricardo Solis-Rodriguez, Francisco Alvarado-Hernandez, Juan Antonio Gonzalez-Anaya, Héctor Rene Vega-Carrillo

"Precious metals are currently associated with refractory minerals such as telluride (Calaverite, Sylvanite, etc.) and selenium (Naumannite Ag2Se), which are difficult to dissolve through traditional methods, therefore it is necessary to perform a pretreatment (oxidative or roasting) preceding the process of leaching by cyanidation. In this preliminary work the aim was to study the use of solvent extraction to remove tellurium and selenium ions from a synthetic cyanidation effluent, with the purpose of recycling the cyanide back to the process. For the extraction of these anions, TeO32- and SeO42-, tallow trimethyl ammonium chloride (Quatarmina TPR) and hexadecyl trimethyl ammonium chloride (Amine F) were studied as extractants, using nonylphenol as a modifier in the organic phase (trimethylpentane). The results show that it is possible to recover 82% of selenium and 10% of tellurium from synthetic solutions containing either 20 mg/L Se or 20 mg/L of Te, respectively The Se or Te mole ratio to cyanide was 1:4.INTRODUCTION In relation to extraction of precious metals, the cyanidation process has been in use for over a century and despite environmental and toxicological problems it remains the most widely used and economical process available. In the late 90s, there were great efforts to recover gold and silver from refractory ores, which is difficult to do by simple cyanidation. To improve gold recovery from tellurides and selenides that occurs in some new mines, the ores are pretreated by roasting. This is one of the most effective ways of rendering refractory gold ores leachable as well as being a fast pretreatment process compared with bio-oxidation or pressure leaching (Aylmore, 2001). The most important tellurides minerals are Calaverite (AuTe2) and, Silvanite (Au, Ag)2Te4). In the case of selenides, minerals include Naumannite (Ag2Se) and Aguilarite (Ag4SeS) (Ostroumov et al., 1989). Examples of deposits containing telluride include La Bambolla Mine (Sonora, Mexico), Cripple Greek (Colorado, USA), and Kalgoorlie (Western Australia) (Aguayo et al., 1996). The main purpose of this work was to explore the feasibility of using quaternary ammonium salts such as: tallow trimethyl ammonium chloride (Quatarmina TPR) and hexadecyl trimethyl ammonium chloride (amine F) to extract tellurium and selenium anions from aqueous synthetic cyanidation effluents, so that the cyanide solution could be recycled back to leaching process. The tests were performed on synthetic solutions similar to those found in a mine: 20 mg/L Te as TeO32-, 20 mg/L Se as SeO42- and mole ratio to cyanide was 1:4. using an alkaline medium with pH ranging from 8 to 12. Two aspects are evaluated in this paper:"

Jan 1, 2017

Training by Inclusiveness ?Background ?Video ?Results ?Partners ?How SEM works ?Future of SEM Background: Inclusivity partners ?Northwest Community College ?Smithers Exploration Group ?With support from the Province of BC ?Federal government ?And First Nations across the northwest

May 1, 2010

By J D. McDonald

This paper outlines the function of the Safety and Compensation Division of the Mining Association of British Columbia. After a general discussion of safety and the safety program now being followed in B.C., the author goes on to describe the wide-ranging aspects of compensation payments and company assessment rates. Special attention is also given to the problem of silicosis in mining operations. In appendices to the paper, the experience rating plan of the mining industry is compared to that recently adopted for the construction industry. Introduction The Mining Association of British Columbia consists of fifty-five member companies, including virtually all the producing mines as well as the larger exploration, contracting and development companies. On completion of an extensive study of safety and compensation in the mining industry, the Mining Association of British Columbia instituted a Safety and Compensation Division in 1954. The director of the Safety and Compensation Division reports to the Executive Committee of the Association. There are two main functions of this Division. First is the prevenion of accidents by encouraging

Jan 1, 1965

By B. S. A. Tatone

The surface roughness of unfilled rock discontinuities has a major influence on the deformational and hydraulic behaviour of discontinuous rock masses. Although it is widely recognized that surface roughness is comprised of a large-scale (waviness) and small-scale (unevenness) components, most investigations of surface roughness have been restricted to small fracture surfaces (< 1m2). Hence, the influences of the large-scale components of roughness are often neglected. Furthermore, these investigations typically focus on analyzing roughness in terms of two-dimensional profiles rather than the complete three-dimensional geometry, which can lead to potentially biased estimates of roughness. This contribution demonstrates the use of a new optical digital measurement system, based on the principle of triangulation, to digitize a large-scale natural rock discontinuity surface at both outcrop-scale (~6m x 2m) and lab-scale (~100mm x 100mm). Subsequently, the digitized surfaces are systematically analyzed using the three-dimensional roughness methodology proposed by Grasselli to investigate the dependency of roughness on sample window size and measurement resolution.

May 1, 2009

By A. G. Doll

"This paper expands the SAG mill survey database published by the Author at Procemin 2013. The new database includes 49 published SAG/AG mill surveys and includes mills from all over the world. The paper will compare the survey database to SAG mill models by Austin, Morrell and Hogg & Fuerstenau with the purpose of demonstrating the degree of fit of the models to surveys and validating any empirical “fitting factors” used in the models.SAG mill power draw models are used in mill design and grinding circuit modelling to predict how much power will be consumed by a particular mill geometry and operating configuration. The importance of conducting surveys suited to model calibration will be highlighted because the review of literature shows that survey information important to modelling is often missing or omitted. A recommendation for the collection of data during a mill survey is presented, along with some assumptions used by the Author in the absence of certain data. The benefit to mining companies of publishing their survey data, and thereby allowing modellers to improve their model calibration, is discussed.The comparison of models requires a discussion of the measurement of power in a mill drive system as the models use slightly different position in the electrical network for ""where power is measured"". The benchmarking of models against plant operations requires a similar discussion of power measurement."

Jan 1, 2016

By J. W. Kramers, R. A. S. Brown

"Samples from seven test wells distributed throughout the surface-mineable area of the Athabasca Oil Sands have been evaluated to determine the amounts of heavy minerals present and the titanium and zirconium contents. The samples were treated to yield the size distribution of the titanium and zirconium minerals as well as their spatial distribution. The study has shown that heavy minerals are found throughout the surface-mineable area; concentrations range from 0.24 to 2.29 per cent (by weight), with a mean of 1.02 per cent. Titanium and zirconium contents vary throughout the area, and are found preferentially in the finer size fractions. •on the basis of preliminary calculations, the tailings streams from an oil sands plant would provide sufficient feed for a large-scale titanium pigment plant, and the tailings from one plant would provide sufficient zircon feed to satisfy Canadian demand for. metallic zirconium. Variability of the heavy mineral content and composition is such that the heavy mineral potential must be evaluated in detail for each mine site."

Jan 1, 1976

By J. G. Bennett

Coal consumption has increased globally by 57% over the last ten years. Underground mining typically provides coal of the highest calorific value and accounts for the greatest proportion of production. Despite a negative environmental image and indeed impact, this industry appears likely to thrive on the global scale for many years to come. Such mining consumes large amounts of electricity with implications for carbon dioxide emission at power plants and emits substantial quantities of the powerful greenhouse gas methane. In response to this significant carbon footprint, the European Union has funded research to examine the potential for a range of improvement technologies in a project entitled Low Carbon Mine Site Energy Initiatives (LOWCARB). Coal properties related to seams and mines, together with longwall characteristics, provide the basis for research into modelling optimally efficient methane drainage with a view to assisting mining as well as maximising electricity generation at surface and hence oxidation of the methane. Possible systems for the oxidation of very low concentration methane in ventilation air, which contributes the greatest greenhouse gas impact due to the volumes emitted, have been studied and modelled. Simulation and investigation of intelligent optimisation of electricity demand patterns provide the basis for reducing the demand peaks at mines and hence the cost and ultimately the carbon footprint of a mine, while specific investigations have been undertaken into ventilation efficiency at an unusually challenging mine and simulation of mine water pumping in order to develop an innovative method to monitor pumping systems efficiency. For post-mining use, the potential of disused shafts for compressed air energy storage to improve the operation of future electricity grids with high renewable energy penetration by reducing peak generation capacity requirements has been studied. While underground coal mining will always by definition be related to a significant carbon footprint, this paper provides an overview of a set of initiatives that can make a positive environmental impact while controlling costs across a huge global industry.

Aug 1, 2013

By Martin G. Wafforn, George J. Greer

"In early 2014, Pan American Silver Corp. commenced a project to construct a second shaft at its La Colorada underground mine located in Zacatecas State in Mexico. This was the first new shaft development project undertaken by Pan American Silver in the history of the company. The existing mine workings permitted the use of a raise bore for the excavation of the shaft opening, utilizing directional drilling in poor ground conditions to advance the pilot hole. This was an interesting project with many challenges and successes, and numerous lessons learned. The project was successfully completed in 2016, with the shaft operating at full mine production capacity within weeks. INTRODUCTION The La Colorada Mine has a long history dating from at least the 1920’s. The mine is located in the northern portion of Zacatecas State in Mexico in the Chalchihuites area, an approximate two hour drive south from the city of Durango. Pan American Silver acquired the La Colorada mining concessions in 1998, with mine production at that time consisting of only a few hundred tonnes per day. Over the course of the following 15 years, with the addition of an oxide processing plant and some expansions to the sulphide processing plant and site infrastructure, production was eventually increased to a maximum of 1,250 tonnes per day, all of it generated from conventional cut-and-fill stopes in the underground mine. An existing shaft was used to hoist the ore to surface, and over the years Pan American Silver had deepened the shaft and had changed out some of the hoisting plant. However, there were historic workings in close proximity to the shaft that made it unsuitable for personnel transport, and shaft maintenance was becoming difficult. The shaft was increasingly considered as a risk to the long term production continuity, and also to further deepening of the mine. In addition, expanding the capacity of this old shaft was not possible. Drilling of the La Colorada mineralization at depth commenced in 2010, with very good exploration success. As a result, by the end of 2013, the mine reserves had grown to a total of 6.5 million tonnes of high grade ore (388 g/t Ag, 0.36 g/t Au, 2.4 % Zn, and 1.3% Pb). Furthermore there were more (and higher grade) sulphide reserves than oxide reserves at depth. Following the completion of an internal study in 2013 with assistance from one of the international shaft contractors, a decision was made to increase the production from the mine with the construction of a new shaft and a new sulphide processing plant, a project with a calculated payback of 2.2 years."

Jan 1, 2019