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By T. T. Tigert

INTRODUCTION THE PURPOSE of this article on methane is to present the simple basic facts of the characteristics, detection, occurrence, and control of this natural gas in metal mines, so that operators and .safety men may deal with it with some degree of confidence. Fortunately, although methane has been noted at many metal mines throughout Canada, the occurrences usually are small flows of short duration, and the ignitions experienced have, in most cases, had minor consequences. However, methane does present a hazard that can be of serious proportions, and ?any complacent attitude toward this gas that might exist in the minds .of people engaged in underground mining operations should be dispelled when it is ,pointed out that, in Ontario alone, ignitions of this gas have resulted in at least four fatalities, and eight men seriously injured and burned, during the past three years. lt is well-known that liberation of methane can and does .occur suddenly, often in mines where no gas has been found before, and that many ignitions and explosions have occurred in so called non-gassy mines. In view of this, it is apparent that no mine can, with any degree of certainty, be classified as non-gassy. CHARACTERISTICS OF METHANIZ The characteristics of natural gas encountered in most of the Ontario mines indicate that methane is the chief constituent. Methane (CH4), commonly termed 'marsh gas', and by the coal miner 'firedamp', is a colourless, odourless, and non-poisonous gas considerably lighter than air, and is the explosive gas frequently found in coal mines. Its physiological effects, closely resemble those resulting from nitrogen.

Jan 1, 1951

By T. Avilez, D. Salari

"The economics of developing gold deposits containing elevated levels of cyanide soluble base metals is often challenged by high cyanide consumption and increased operating costs. SART is a chemical process that enables cyanide consumed by base metals to be recovered and recycled for gold leaching. The process also provides concurrent recovery of the base metal to generate incremental revenue from the sale of high-grade base metal sulphide concentrates. Although SART was developed and successfully piloted by Lakefield Research and Teck Corporation in the late 90’s and is now a public domain technology, the adoption of SART has been relatively slow due to concerns about implementation costs and the reliability of metallurgical performance. Through extensive experience in selective metal sulphide precipitation applied to mining wastewater since 2007, BQE Water has provided process know-how, design along with operations and maintenance experience to a number of projects involving the integration of SART into various metallurgical flowsheets on an industrial scale. This paper presents the commissioning experience and operating data from a SART plant treating up to 500 m3/hr of leach solution at a heap leach operation in Mexico. INTRODUCTION One of the current trends in the gold industry globally is the increasing importance of complex polymetallic gold deposits as discoveries of large Carlin type gold deposits become increasingly rare (Sceresini, 2005). The presence of cyanide soluble copper and zinc in complex gold deposits necessitates changes to the traditional gold extraction metallurgical flowsheet. A tool available to the industry to help manage the interference of cyanide-soluble base metals in gold extraction is the SART (sulphidization-acidification-recycling-thickening) process. SART breaks the weak acid dissociable (WAD) base metal-cyanide complexes, precipitates the metals as high-grade sulphide concentrates and makes the freed cyanide available for recycle."

Jan 1, 2018

By C. Turek, R. Henderson

Mine planning is the foundation of value for a mining company. Good mine planning requires solid understanding of the ore body, rigorous standards and processes, robust and useful information technology and skilled people. Life of mine planning is key to identifying strategic direction for any mine and short range mine planning is key to delivering forecast and budget expectations. Mine planning at Kinross has been identified as a critical success factor and initiatives are being prepared to improve the quality of our plans and to build bench strength in our teams. The Kinross Way for Mine Planning (KWMP) has been developed and implemented to establish the standards to ensure a strong business foundation. This paper briefly describes the process used to develop the KWMP and presents a selection of mine planning best practice initiatives at Kinross mines.

Jan 1, 2011

By P. Dent

"Rare earth permanent magnets (REPM) have become virtually indispensible in hundreds of applications including aerospace, automotive, electronics, energy, medical and military. An understanding of REPMs is important since they are key drivers of demand for the overall rare earth sector. Rare earth permanent magnets stand out due to their superior magnetic properties of high induction and coercive force. We will discuss the past, current and future of the permanent magnet market and supply chain. We will summarize present and potential new nanocomposite and lower content or non rare earth magnet technologies and customer options which may mitigate rare earth usage.INTRODUCTIONRare earth permanent magnets are ubiquitous and often unseen critical components in many civilian, green energy and military technologies. They have become imbedded in applications such as hybrid electric vehicles, computer hard drives, direct-drive high power wind generators, audio speakers, motors, energy conversion systems, most weapons systems and hundreds of other uses. Several rare earth elements including neodymium, samarium, dysprosium, praseodymium, terbium and gadolinium are essential ingredients in production of the highest performance magnets available in the world today. They have enabled vast miniaturization and the significant increase in power density in hundreds of applications.China has become the dominant source of rare earth elements over the last two decades. Today, nearly 100 percent of the world’s rare earth metals and more than 95 percent of the rare earth oxides come from China. China’s near worldwide monopoly on the production of downstream materials such as rare earth oxides, metals and magnets severely impacts the supply chain in this growing global market. The past decade has seen an unmistakable trend toward increased dominance in raw material production and manufacturing by China, and a steep decline in U.S. production capabilities, most notably in the neodymium iron boron (Nd-Fe-B) market where there is currently no domestic production. This Chinese dominance is further demonstrated with over 65 percent of hard ferrite and roughly half of aluminum nickel cobalt (Alnico) and samarium cobalt (Sm-Co) production in that nation (Figure 1). In addition, China has imposed export quotas and export taxes of up to 25 percent for rare earth elements, arguably in violation of their covenants made with their protocol of accession to the Word Trade Organization. These export quotas have been decreasing steadily over the last several years in spite of rising global demand and were slashed by 72 percent in July 2010 (Bradsher, 2010) causing many recent news stories."

Jan 1, 2012

By Arthur M. Whiteside

Discussion of the laws bearing upon the economics of mining in this province at once resolves itself under three headings: (a) The rights and obligations of holders of mineral bearing lands; (b) Taxation of mines; (c) Regulation of methods adopted in financing mining operations. Titles: The law relating to titles is contained in the Mineral Act, Placer Mining Act and Coal Mines Prospecting Act. Origin: Mining laws in force in this province and elsewhere on the continent had their origin in the rule-of-thumb regulations adopted by prospectors themselves, when, far from the centres of civilization and the seats of the courts of justice, they found it necessary, for mutual protection, to fix the conditions of possession by right of location, and to prescribe the duties to be performed in order to enable the individual to maintain his ground against all comers. These regulations have been codified and added to by legislatures, until we find adequate protection and safeguard to property in the laws of this province.

Jan 1, 1924

By L. M. Nolan

Chemical Mechanical polishing, or CMP, has four components in the polishing interface; namely the polishing pad, the polishing fluid, the abrasives in the fluid, and the surface being polished. Understanding the way that load is transferred between these components is key to understanding and predicting wafer polishing. Numerous models of CMP and the different load sharing arrangements which occur between these four components have been proposed. These include models by Luo and Dornfield (1) and Fu, Chandra and colleagues (2). Other models focus on just one or two loading arrangements, such as `hydroplaning' when all load is transmitted by the liquid in the case of Runnels and Eyman (3). In this work, we consider four possible combinations of load transfer from pad to wafer in CMP. These combinations are listed below in Table 1 and are illustrated schematically in Figure 1. It is important to note the role of scale in this process; the illustrations in Figure 1 are drawn to scale from actual profilometer scans obtained over a length of 5 with particles of 150 nm in diameter. Table 1 - Load Transfer Combinations Load Regime Illustration Wafer - Fluid - Pad Figure la Wafer - Particles/Fluid - Pad Figure lb Wafer - Particles - Pad Figure lc Wafer-Pad Figure ld The interest in load-sharing between the system components is because some configurations are anticipated to achieve higher polishing rates than others. For instance, in hydroplaning, or hydrodynamic lubrication, the lateral force exerted on the polished surface by the particles can be no higher than the fluid shear force developed in the gap between the pad and wafer. This is not expected to generate high rates of material removal from the surface (4). For contact that is largely between the pad and the wafer, such as the regime depicted in Figure ld, the lateral load is transmitted to the wafer by the pad and is hence limited by the pad's low rigidity. This regime is not expected to generate high material removal rates either. The highest levels of material removal are expected from regimes where the mechanical load exerted on the system is transmitted by the particles, in combination with either the fluid or the pad. Under what circumstances does the polishing regime change from one to another? What must occur in order to initiate or terminate contact between the system components? This is an ongoing question in the field of tribology, and has traditionally been viewed in terms of the pressure and velocity applied to the system, the thickness of the fluid film between the two surfaces, and the roughness of those surfaces (4). In this paper, we propose a new mechanism ? that the load on the particles may be sufficient to totally embed them in the polishing pad, at which point they are no longer able to transmit load and polish the wafer surface. This is illustrated schematically in Figure 1(d).

Jan 1, 2010

By Bryon Cerklefskie, Michael Schulte

"This case study explores the usage of polymer ducting as a replacement to curtains and FRP for face ventilation in two coal mines. There are two mines looked at, one is the highest elevation underground coal mine in North America, the other is the gassiest mine in North America. The paper details the trials of both mines switching from FRP and curtain respectively to polymer ducting. The results discuss the ability for the mines to not only achieve consistent airflows and keep them in compliance but the unexpected positives. Mine A was allowed to do longer cross cuts due to increased air volume at the face. This drastically cut their costs of mining down due solely to modification of the ventilation cycle. Mine B saw economic benefits due to longer cuts between place changes. Both mines have documented lower dust, methane, noise, and improved wear and tear on their equipment as a result.INTRODUCTIONThe emergence of longwall mining in underground coal operations has resulted in new ventilation challenges. Numerous production crews strive to complete their development sections with enough time to adequately prepare for the upcoming longwall panel. Continuous miners will cut out two or three entry development sections per their ventilation plan, that is approved and controlled by MSHA (Mine Safety and Health Administration), which will drive amount of footage that can be mined at a time prior to installing roof support. At this moment the continuous miner, hereafter referred to as the CM, will back out of the entry and moves to the second entry to complete a similar cut. Typically, a roof bolter crew will pull in to the finished cut section and install ground support. This is called a place change style of production coal mining. There is an alternate method that includes a miner/bolter combination as well but that was not featured at either test site in this case study. Ventilation has to be provided to sweep the working face of each entry to control dust and gasses. Each task will have an MSHA prescribed ventilation requirement dependent on the dust levels and methane emissions of the rock for that particular mine. The CM, roof bolting and unused headings will each require constant ventilation but at different volumes. Since each working face is changing throughout the mining cycle the ventilation requirement in a working heading is never static and is changing with the working task.Traditional Ventilation ControlsTraditionally face ventilation for coal mining operations has been completed thru the usage of a curtain system and\or using auxiliary fans and ventilation tubing. Room and pillar mining systems typically utilize curtain systems, which use curtain walls that are installed by the miners by erecting wood framing and covering it with brattice curtain. This splits the drift width to allow fresh air to sweep the face and take the contaminated air and dust behind the curtain to the ventilation exhaust\return area of the mine. This method is difficult to adjust the airflow from entry to entry during changing cycles and requires that a wider drift is mined out in order to have enough room for the brattice wall. In operations that require roof bolting, this method limits the length of the cuts from the CM prior to advancing and can lead to not providing enough ventilation to keep dust and methane levels below compliance requirements."

Jan 1, 2019

By B. Ignasiak

Laboratory studies suggest that improvements of coke strength brought about by pre-heating caking coals before carbonization accrue from inadvertent oxidation rather than from other low-temperature changes in the coal mass. Controlled oxidation of highly caking coal, followed by laboratory carbonization, produces cokes which, in terms of a laboratory scale tumble test index, are equivalent to those obtained from prime metallurgical blends. Appropriately formulated blends of exhaustively oxidized and fresh caking coal similarly yield cokes with strength indices comparable to those of cokes made from the same coal after oxidation under optimum conditions.

Jan 1, 1979

By Bahjat Khoshaba, Bern Klein, Haixing Yan, Libin Tong, Andrew Bamber

"When a conductive or magnetic particle was put into an electromagnetic field introduced by an electromagnetic sensor, the particle can influence the electromagnetic field which can be used to characterize this particle. The electromagnetic technology based on eddy current theory was explored to investigate its potential in both the separation of minerals and the pre-concentration of a base metal ore. Samples tested in the study included the minerals obtained from Ward’s Science and the low grade copper ore particles obtained from Mount Polley Mine. The effects of mineral type, sensor frequency, particle size, particle position on the sensor surface, and particle lift-off on the magnitude and phase of the electromagnetic spectra were investigated. The electromagnetic spectra of various minerals show that it is possible to separate chalcopyrite or magnetite from tested minerals, simply based on the magnitude of the spectra. The spectra of the ore particles were determined by the mineral in the particles with the strongest signal. The effect of the pre-concentration of the low grade copper ore is determined by the association of chalcopyrite with magnetite. Direct sorting is the mechanism in the separation of mineral particles, while indirect sorting is the mechanism for low grade ores.INTRODUCTIONSensor-based sorting technologies include radiometric, X-ray transmission, X-ray fluorescence, near infrared, photometric, inductive, microwave heating and so on. Sorting not only discards barren rocks away from the concentrator but also recovers metal bearing that would be lose to the waste dump. The benefits of pre-concentration using sensor-based sorting are achieved on reduced energy consumption for comminution and reduced water usage on a volume per weight of metal basis (Bamber, 2008; Gunson, Klein, Veiga, & Dunbar, 2012; Kleine & Wotruba, 2010; Knapp, Neubert, Schropp, & Wotruba, 2014; Kobzev, 2014; Lessard, de Bakker, & McHugh, 2014; Mazhary & Klein, 2015; Robben, Wotruba, Robben, von Ketelhodt, & Kowalzcyk, 2013). Amongst others, high frequency electromagnetic sensors were developed for ore sorting at MineSense Technologies Ltd. and are subject of this paper. Improving the understanding of ore heterogeneity is the basis for developing a successful semi-bulk or bulk sorting systems by incorporating the sensors in the material handling equipment (MineSense Technologies Ltd., 2016). The present study focuses on the bulk sorting potential and bulk sorting mechanisms of the electromagnetic technology in the pre-concentration of minerals or ores."

Jan 1, 2016

By Vlad Ruzicka

"Uranium deposits in the Rabbit Lake-Collins Bay area are associated with the sub-Athabasca unconformity which separates crystalline Archean or Aphebian basement rocks from Helikian clastic sedimentary rocks of the Athabasca Group. The basement rocks are a part of Wollaston lithostructural domain.Most of the high grade deposits, such as Collins Bay ‘A’ and 'B' Zones and Eagle Point are associated with altered rocks of the basal unit of the Wollaston Group. Some deposits, such as Raven and Horseshoe are confined to the uppermost unit of this Group. The Rabbit Lake deposit occurs in the middle, meta-arkose unit of the sequence. Locations of some deposits (Rabbit Lake, Collins Bay ‘A’ and 'B' Zones) are also controlled by thrust faults, such as Rabbit Lake Fault and Collins Bay Fault.The deposits contain either monometallic (uranium) mineralization (Rabbit Lake, Raven, Horseshoe) or polymetallic (mainly uranium-nickel) assemblages (Collins Bay “A’ and 'B' Zones).IntroductionThe Athabasca Basin region, a part of the Churchill Geological Province of the Canadian Shield, is composed of Archean and Aphebian crystalline basement and younger, Helikian, unmetamorphosed supracrustal rocks. The Rabbit Lake-Collins Bay area is situated at the eastern margin of the Athabasca Basin region, which hosts a substantial proportion of Canadian uranium resources.The crystalline basement complex was subdivided by Lewry and Sibbald (1979) into lithostructural domains and these domains were grouped into major crustal units designated, from northwest to southeast, as Western Craton, Cree Lake Mobile Zone, consisting of Wollaston, Mudjatic and Virgin River domains, and Rottenstone Complex (Fig. 1)."

Jan 1, 1986

By A. F. Matheson

"The Jellicoe is the most westerly mine in the Little Long Lac area with a record of gold production. The property is largely covered with overburden and the ore deposit was found by diamond drilling along the projected strike of a gold bearing zone at Magnet lake 1 ½ miles to the east on the property of Bankfield Consolidated Mines, Limited. In 1940-41 Jellicoe mined the whole orebody of approximately 14,000 tons, recovering 5,620 ounces of gold.The vein is in light-coloured greywacke. A mile-long dyke of fine-grained quartz feldspar porphyry 5 to 10 feet in width lies 100 feet south of the vein. A similar, even longer dyke lies 700 to 800 feet north of the vein. Some narrow diorite dykes are also rather closely associated. The porphyry dykes are gold bearing, but not ore. The vein material is quartz and silicified and brecciated greywacke. Mineralization consists of native gold, pyrite, arsenopyrite, and some sphalerite."

Jan 1, 1954

By John D. Galloway

Mining is one of the important primary industries of Canada, with a gross production in 1927 estimated at $241,773,000- the highest in the history of the country-and an impressive dividend record. It is quite apparent, therefore, that mining is a business worthy of the careful attention of the people of Canada. Furthermore, with a vast undeveloped territory more or less mineralized, it is highly probable that our mining industry will continue to expand indefinitely, with a consequent increase in production and in the amounts of the yearly profits distributed. In recent years, the public has taken a larger interest than formerly in mining-an interest, moreover, that is not academic, but primarily from the viewpoint of profits. It is quite evident that mining is a profitable business, at least to some, and the average man on the street, hearing of these profits, is attracted thereto. I have no doubt that many of you have .read in promotion prospectuses, with figures to prove it, that mining is the most conservative, the safest, and the highest-yielding business in the world. Now, a lot of this information is best judged by the old saying that "While figures don't lie, liars figure". At the same time, mining, properly conducted, is a profitable business, even though speculative, and undoubtedly much profit will come from Canadian mines in the future. In this paper my conclusions regarding mining investments are based largely on British Columbia experience, together with some slight knowledge of mining conditions in the other Provinces. It is considered, however, that the inferences drawn are applicable to mining throughout Canada.

Jan 1, 1928

By Zolfan F. Oszter

As exploration for new mineral deposits advances farther into the Canadian North, the more the design engineer is faced with the problems of cold weather conditions. This is especially true when designing belt conveyor systems for open-pit operations where the temperature in the winter may go to -40°F or below. Problems with the mechanical components and also with the belting will arise, which in turn may reduce the availability of the system. This paper outlines the problems encountered during cold weather operation and what precautionary measures must be taken into consideration in the design of equipment, as well as in the selection of materials, in order to ensure a system which will maintain production. THE conveying of ore and waste in the pit or to the processing plant poses problems during cold weather, when temperatures may drop to -4o?F or be-low. Troubles with the mechanical components, the belting or the supporting structure may arise, and this, in turn, will reduce the availability of the conveying system.

Jan 1, 1965

"Pilot plants for pressure hydrometallurgy represent special design and project execution challenges. Over the past twenty years, Zeton has designed and fabricated a variety of world-class pressure hydrometallurgical pilot-plant facilities, and this paper discusses design considerations and strategies related to such projects. Project execution methods are also discussed, and guidance is given for the selection of materials of construction and for the selection of appropriate pressure and temperature design points for pressure hydrometallurgical pilot equipment. The paper concludes with a discussion of the need for process similarity with future commercial operations and the realities of pilot-scale equipment.INTRODUCTIONThe process technology developer or owner and the designer/fabricator of a new pilot-plant facility are faced with some difficult technical choices even after the decision to build a dedicated plant has been taken. A pilot-plant project is usually on the critical path of a large commercial project involving investments many multiples greater than the capital cost of the pilot plant. Schedule savings in the design, manufacture, and commissioning of the pilot plant or in a rapid completion of the experimental program can be disproportionately beneficial to the overall development project. However, inappropriate shortcuts resulting in major oversights can be disproportionately problematic.A number of considerations and suggestions for both the project execution approach and the process engineering design of pressure hydrometallurgical pilot-plant facilities are presented as a guide for potential owners and operators of new pilot-plant equipment and facilities."

Jan 1, 2012

By I. M. Masters

Iron removal and control in processes employing pressure leaching technologies developed at Dynatec Corporation are reviewed. Discussions are focused on recent developments in the processing of nickel-copper matte and copper concentrates, and on the Ambatovy laterite project in Madagascar. Iron control and its implications on flowsheet design in the pressure acid leaching (PAL) treatment of laterite ores and in the oxidative pressure leaching of mixed nickel-cobalt sulphide intermediates are also discussed.

Jan 1, 2006

By M. Rafiee

Indoor physical security, as a perpetual and multi-layered phenomenon, is a timeintensive and labor-consuming task. Various technologies have been leveraged to develop automatic access control, intrusion detection, or video monitoring systems. Video surveillance has been significantly enhanced by the advent of Pan-Tilt-Zoom (PTZ) cameras and advanced video processing, which together enable effective monitoring and recording. The development of ubiquitous object identification and tracking technologies provide the opportunity to accomplish automatic access control and tracking. Intrusion detection has also become possible through deploying networks of motion sensors for alerting about abnormal behaviors. However, each of the above-mentioned technologies has its own limitations. This paper presents a fully automated indoor security solution that leverages an Ultra-wideband (UWB) Real-Time Locating System (RTLS), PTZ surveillance cameras and a Building Information Model (BIM) as three sources of environmental data. Providing authorized persons with UWB tags, unauthorized intruders are distinguished as the mismatch observed between the detected tag owners and the persons detected in the video, and intrusion alert is generated. PTZ cameras allow for wide-area monitoring and motion-based recording. Furthermore, the BIM is used for space modeling and mapping the locations of intruders in the building. Fusing UWB tracking, video and spatial data can automate the entire security procedure from access control to intrusion alerting and behavior monitoring. Other benefits of the proposed method include higher accuracy and robustness, more complex query processing, and interoperability with other BIM-based solutions. A prototype system is implemented that demonstrates the feasibility of the proposed method.

Aug 1, 2013

By Allan A. Este, Bruce Arthur

"Rio Algom's Stanleigh Mine and Mill Operation Was' officially started up in August 1983. In September 1982, Rio Algom contracted Estonix International Inc. from Lively, Ontario, to develop and implement two innovative programs: (1) Work Renovation Planning, and (2) Systems Performance Training. This paper deals with the development and implementation of these two concepts relative to the plants technology from start-up to present and the exceptional results achieved. This paper discusses how a small but motivated workforce resulted in the smooth transition from startup to full production. It also deals with how these concepts were applied elsewhere in the organization which permitted a successful transition and downsizing of the over-all operation.IntroductionRio Algom Limited produces uranium in Elliot Lake, Ontario. In the late 1970s Rio Algom entered a contract with Ontario Hydro to supply uranium from its Stanleigh property, which had been idle since 1960. The mine was subsequently upgraded, and a new modem mill was designed and built, commencing operation in 1983.From then until September 1990,Rio Algom had three producing mines and mills in the Elliot Lake area. Quirke mill, with a capacity of 6350 tonnes per day, operated continuously from 1968. The Panel mill with a 3000 tonnes per day capacity, operated since 1979. Stanleigh mill continues to operate under long-term contracts, although at a production rate about 25070 lower than its rated capacity of 5000 tonnes per day.Both the Quirke and Panel mills, although not entirely similar, were conventional uranium mills utilizing crushing, grinding, leaching and ion exchange. As such, and in keeping with the traditional management style, there was a rather large mill operating workforce, which utilized a line-of-progression job classification system."

Jan 1, 1993

By Lex L. Udy

External-detonation-generated plasmas, highly ionized zones of reacting material ejected from the surface of detonating explosive charges, are shown to be the cause of channel desensitization, i.e., the self-quenching of a detonating explosive column loaded in a borehole with an air annulus between the explosive and the borehole wall. The effects of this phenomenon on several explosive compositions and types are demonstrated and discussed. The explosives tested include aluminum-sensitized and explosive-sensitized slurries, ANFO, liquid explosives and dynamites. Various techniques are described that can be used to reduce or eliminate the plasma effect.

Jan 1, 1979

By Lawrence Devon Smith

"What is Due Diligence?Within the mining industry the term “due diligence” is used to describe a detailed data review, generally in connection with the purchase or sale of a mineral property, the approval of a large capital expenditure, or the borrowing of a large sum of money.The term originates in the requirement of the board of directors of a corporation to “act honestly and in good faith ... and exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances” (OBCA, 1994). Furthermore, the law assumes that a corporation (or its board) will have exercised due diligence in the acquisition of an asset and, therefore, knowingly (in the absence of fraud or deceit) will have taken on the liabilities and obligations associated with the asset (Nelson, 1994). This is the familiar “Buyer Beware”.Directors are liable for their decisions except “if the director relies in good faith upon financial statements of the corporation represented … by an officer of the corporation or in a written report of the auditor, or a report of a lawyer, accountant, engineer, appraiser, or other person whose profession lends credibility to a statement made by any such person.” (OBCA, 1994).Hence the importance of reports prepared by professionals. They provide confirmation that the directors have exercised due diligence in the performance of their duties. For this reason these reports are referred to as due diligence studies"

Jan 1, 1997

By Lawrence Devon Smith

"Within the mining industry the term “due diligence” is used to describe a detailed data review, generally in connection with the purchase or sale of a mineral property, the approval of a large capital expenditure, or the borrowing of a large sum of money.The term originates in the requirement of the board of directors of a corporation to “act honestly and in good faith and exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances” (OBCA, 1994). Furthermore, the law assumes that a corporation (or its board) will have exercised due diligence in the acquisition of an asset and, therefore, knowingly (in the absence of fraud or deceit) will have taken on the liabilities and obligations associated with the asset (Nelson, 1994). This is the familiar “Buyer Beware”.Directors are liable for their decisions except “if the director relies in good faith up on financial statements of the corporation represented by an officer of the corporation or in a written report of the auditor, or a report of a lawyer, accountant, engineer, appraiser, or other person whose profession lends credibility to a statement made by any such person.”(OBCA, 1994).Hence the importance of reports prepared by professionals. They provide confirmation that the directors have exercised due diligence in the performance of their duties. For this reason these reports are referred to as due diligence studies."

Jan 1, 1996