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The latest resource estimate for the Caspiche gold/silver/copper project in the Maricunga region of Chile was released by gold explorer Exeter Resource Corp. The resource is low grade, but bulk minable and drilling to date has shown a NI 43-101 compliant inferred resource of 1,117 Mt (1.23 billion st) grading 0.55 g/t (0.016 oz/st) gold, 3.81 g/t (0.111 oz/st) silver and 0.22 percent copper. Exeter said these findings make the in situ metals amounts of 609 t (19.6 million oz) of gold, 4.4 kt (137 million oz) of silver and 4.84 billion lbs of copper, which the company relates as 33.7 million gold equivalent ounces using assumed metal prices of $23.33/g ($800/oz) for gold, 35 cents/g ($12/oz) for silver and $2/lb for copper. The deposit is almost midway between Barrick?s Cerro Casale gold deposit and Kinross? Refugio Mine. In a statement Exeter chairman Yale Simpson said ?This updated resource estimate places Caspiche firmly among the world?s largest gold-copper discoveries in recent years and clearly supports our decision to aggressively drill the property, despite the global economic decline. ?We expect that the very substantial copper and silver credits will be extremely important, and will markedly impact the potential viability of Caspiche. Specifically, using metal prices of US$2/lb copper, $23.33/g ($800/oz) gold and 35 cents/g ($12/oz) silver, the 4.84 billion lbs of copper and 4.2 kt (137 million oz) of silver are equivalent to 376 kt and 62 t (12.1 and 2 million oz) of gold, respectively. ?Our recent drilling has defined what appears to be a coherent higher grade central zone associated with a definable early stage diorite intrusion. We expect this zone will be important in developing various mining and economic models for the project,? Simpson said. Exeter is still drilling the deposit to expand the re-source estimate further to the southeast and at depth and to upgrade the higher grade central zone to the indicated category. Simpson said, ?Exeter intends to enhance the value of Caspiche by continuing to de-risk the project through ongoing exploration, metallurgy, engineering, water and environmental studies. These studies will continue through the next 12 months and will lead to a conceptual development study. A timeline for the release of that study is being formulated. The project budget for the next 12 months is C$14 million.? Mineweb reported that Caspiche is likely too big of a deposit and at too high of altitude for Exeter to handle alone. Exeter will be looking to other majors, or perhaps the Chinese, to help develop this huge orebody. But, in the meantime, it also has its high grade Cerro Moro deposit in Argentina, which could be brought to production relatively quickly and at relatively low cost.

Jan 1, 2009

By A Cooper

The current financial climate has given rise to fears that falling mineral prices and tight credit will force mining companies to cut back on production and new project development in a bid to cut costs and conserve cash. However, a prolonged squeeze on global supply can have only one result: a massive and potentially explosive demand for metals in the not-too-distant future. A resurgent global economy will also generate dramatic new demand for oil and energy, with a return to higher oil prices likely. How then should the mining industry plan for the future? In-pit crushing and conveying (IPCC) could lead the way as a partial or complete substitute for trucks. In 13 of 15 studies undertaken by Sandvik and Snowden, comparing IPCC with truck-optimised pit designs, IPCC generated operating savings ranging from US$0.18 to US$0.82 per tonne moved, compared to trucks. Trucks have higher operating, maintenance and energy costs than conveyors. New emission standards on diesel engines may make them more emission friendly but less efficient in terms of energy usage. With far more efficient energy use and cheaper operating costs per tonne moved than trucks, conveying offers an attractive alternative for the bad times ahead and into the apparent energy depleted future. When evaluating alternatives, a reasonable first step would be to conduct a scoping level study which analyses the differences in capital and operating costs between a truck and shovel operation and an IPCC solution. The study can also determine what type of IPCC is best suited to the particular mining application. The results can then be used to decide whether a more detailed study is justifiable. IPCC is a proven process that, with a fresh mindset, can make a significant improvement to mining operations. Sandvik (as an OEM with a full suite of IPCC equipment) can undertake these studies in ten working days in conjunction with Snowden or any other independent mine planner who knows how to schedule for IPCC. Because most mining industry personnel have been æborn and bredÆ on trucks and shovels û this paper focuses on some of the practical considerations necessary to make IPCC systems work that the Sandvik Technical Services Group has encountered during these studies.

Jan 1, 2009

There is no doubt that the mining sector is considered to be the backbone of many countries. Furthermore, it has played an important role in the prosperity of nations, whether developed or developing. Saudi Arabia is one of these countries that has a large variety of metallic and non-metallic mineral resources that range in size and value occurrences of limited potential to deposits large enough to sustain profitable exploitation. Therefore, the Saudi government needs to reinforce the capacity of the sectoral institutions to better regulate and promote the sustainable development of the sector. The ability to overcome the administrative and legal complications that constrain private sector participation in the minerals sector, through new mining code which will streamline the procedures for obtaining licenses and will add more predictability and transparency to the application process, are proposed for increasing the sustainable development. This paper will outline how the Saudi government is tackling the major challenges that face the minerals industry. This paper provides the background to the Saudi Arabian mineral sector and its industrial base. Finally, the paper identifies the problems and constraints that face the minerals sector in Saudi Arabia and provides an assessment of the effects of government policies and planning efforts in the minerals sector, particularly during the period of the development plans which started in 1970.

Jan 1, 2009

By F. Freme

Coal production in the United States in 2008 reached a record level of 1.06 Gt (1,171.5 million st), according to preliminary data from the U.S. Energy Information Administration (EIA) (Table 1). This is an increase of 2.2 percent, or 22.5 Mt (24.8 million st) above the 2007 level and 7.9 Mt (8.7 million st) above the prior record level set in 2006. Although coal production was higher in 2008, U.S. total coal consumption decreased in all sectors for the year. Coal consumption in the electric power sector in 2008 was lower by 0.3 percent, while coking coal consumption decreased by 2.8 percent and the other industrial sector declined by 3.7 percent. The commercial and institutional sector, that had been called the ?residential and commercial? sector prior to 2008, declined by 0.6 percent in 2008. It is the smallest of all the coal-consuming sectors. (Note: All percent-age change calculations are done at the short-tons level.) U.S. coal exports were significantly higher in 2008, while coal imports decreased during the year. Total coal stocks increased in 2008, as some consumers added to their stockpiles. The coal synfuel industry, which grew throughout most of this decade, disappeared from the scene due to the expiration of the available federal tax credits at the end of 2007. The decline in coal consumption during the year was the consequence of slowing domestic economic growth, particularly in the latter half of the year, combined with the weather conditions in 2008, resulting in lower demand for electricity. Preliminary data show that total generation in the electric power sector (electric utilities and independent power producers, including useful thermal output) in the U.S. decreased in 2008. Coal-based generation also decreased, resulting in a 3.2-Mt (3.5-mil-lion st) drop in coal consumed in the electric power sec-tor. Coal use in the non-electricity sector decreased by 3.3 percent to a level of 72.6 Mt (80.1 million st). The international coal markets in 2008 were the driv-

Jan 1, 2009

By Y Yang, J Skrypniuk

The Jinfeng mine is Sino Gold's flagship project and is the second largest gold mine in China. Sino Gold Limited (SGL) holds 82 per cent equity in the Sino-Foreign joint venture Sino Guizhou Jinfeng Mining Limited (SGJML) with a Chinese partner. Jinfeng is located in a relatively remote site in southwestern Guizhou province. The orebody is considered to be the largest known Carlin type deposit in China. Jinfeng Plant has the world's third largest BIOX« bacterial oxidation facilities (790 t/d), treating highly refractory concentrate generated from crushing, semi-autogenous grinding (SAG) and ball milling and bulk sulfide flotation operations. The Jinfeng Plant construction started in February 2005, commissioning was completed in April 2007, and commercial gold production was achieved in September 2007. This paper describes the successful operations of Jinfeng Plant over the last two years. The key events of the project development are described, from the project background and process design, through to the commissioning and achieving design mill throughput of 3600 t/d resulting 180 000 ounces of gold per year. Process aspects of the BIOX« and carbon-in-leach (CIL) operations over the last two years are discussed which illustrate a very high BIOX« oxidation rate (more that 97 per cent) and excellent CIL recovery (more than 96 per cent). The management of the Jinfeng plant CIL tailings detoxification and filtration is described, and Jinfeng has became the first BIOX« processing plant to have achieved dry stacking of detoxified and pressure filtered CIL tailings. Current efforts to recover cyanide from CIL detoxified solution and the achievement of a zero discharge site water balance are also introduced. Many improvement projects have been made over the last two years which have culminated in a 15 per cent increase in mill throughput over the design and BIOX« CIL recovery increasing from 92.5 per cent to 96 per cent. Significant operating cost reductions from lowered of acid, lime and cyanide usage through process modifications and technical innovations are discussed.

Jan 1, 2009

By F. Varley, J. Whyatt

A variety of dynamic failure cases with regional impact were described at a bump symposium held in 1958. These types of events, while rare, are of particular interest because their ability to impact a large area has disaster potential. These cases can be grouped into two broad classes of events by mechanism. These are (1) a slip along steeply dipping faults and (2) the fracturing of strong strata above or below the coal seam. Both failure modes produce dynamic or “shock” loads on the perimeter (roof, rib and floor) of mine openings. Special consideration should be given to these failure modes in the planning of deep coal mines, since their occurrence is not within the professional experience of many contemporary workers. In addition, their potential is not evaluated by many of the analysis tools commonly used to evaluate hazards in coal mine plans.

Jan 1, 2009

By Bradford F. Townsend, Marc R. Kritzer, Michael F. Roach, Dennis Ofiara

All Rights Reserved. Printed in the United States of America. Information contained in this work has been obtained by SME, Inc. from sources believed to be reliable. However, neither SME nor its authors guarantee the accuracy or completeness of any information published herein, and neither SME nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that SME and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Any statement or views presented here are those of the authors and are not necessarily those of SME. The mention of trade names for commercial products does not imply the approval or endorsement of SME.

Dec 1, 2008

By Sean Gallagher

This report was written in an effort to provide better control measures for low back pain (LBP) and low back disability in the mining industry. There are numerous factors associated with development of LBP, many of which can be effectively controlled while some cannot. Better job design is promoted as the best method of reducing cases of LBP and can also reduce the disability (i.e., lost time from work) associated with LBP when it happens. The report draws attention to what is currently known about LBP, what the causes are thought to be, and discusses recent back injury trends in the mining industry. Research describing unique physical demands in mining, such as the capabilities and limitations of working in awkward postures, is also presented. Methods that can be used to prevent initial LBP episodes are provided, including facilities design and layout for materials and supplies, use of mechanical-assist devices, improved design of lifting tasks, and better seat design. Methods of reducing the disability associated with LBP (including workplace design, proactive return-to-work efforts, communication, and management commitment) are also discussed. The report concludes that control of LBP and disability in mining requires a comprehensive approach to limit the repetitive loading that can occur on the low back due to manual materials-handling tasks and exposure to whole-body vibration (WBV). Specific recommendations include the following: ? Successful LBP prevention efforts require a proactive program that has strong management commitment and incorporates employee involvement. ? More efficient supply handling systems and use of mechanical-assist devices can greatly reduce exposure to hazardous lifting tasks. ? Lifting tasks should be designed to minimize low back stress. Tools to evaluate and redesign lifting tasks are presented. ? Improved seat design can reduce exposure to WBV and improve posture, leading to reduced LBP risk. ? The disability associated with LBP can be reduced. Getting the worker back on the job as quickly as possible is in the interest of everyone involved.

Sep 1, 2008

By M. E. Silva, V. B. Medrano

Los proyectos de Pecoy y Tororume son dos nuevos descubrimientos de sistemas tipo pórfido Cu-Mo, con créditos en oro y plata localizados, en la región Arequipa. Además de los cuerpos intrusivos mineralizados, Granito Porfirítico (Pecoy) y Granodiorita Equigranular (Tororume), se tienen importantes cuerpos de brecha hidrotermal en ambos, principalmente en Pecoy, donde los sondajes ejecutados confirman extensiones verticales en las brechas de hasta 800 metros. La alteración hidrotermal más importante es la potásica con biotita secundaria, a la cual se asocia mayormente la mineralización de sulfuros primarios de cobre y molibdeno.

May 1, 2008

By Jean Legault

ZTEM is a natural field airborne EM technology that is in its 10TH year of service and is widely used for porphyry copper exploration around the world, yet is still considered a new technology. ZTEM uses EM fields generated by worldwide thunderstorm activity as is primary source field. Its large depth of investigation (>1km), its sensitivity to weak lateral resistivity contrasts and the relative simplicity of its EM fields for computer modelling are among its greatest attributes. ZTEM has helped discover blind porphyry copper deposits and is also widely used in unconformity uranium, epithermal gold and geothermal exploration around the world.

May 1, 2008

By William A. Hustrulid

The subject of surface mine development is large. This section covers the fundamental concepts involved in both the open pit mining of thick or steeply dipping deposits as well as the strip mining of thin, shallow, and relatively flat-lying seams or beds. Design involves the marrying of geometries, ore and waste characteristics, equipment, and economics so that the desired result is achieved. Generally, there are many possible combinations from which to choose. For example, extraction over a short time period requires one strategy while quite another is applied for longer times. Variations in supply and demand require some flexibility of operation. Customer requirements impose certain constraints regarding the set of possible designs. Over recent years, planning and operating considerations for surface mining imposed by environmental requirements have increased markedly. There have, at the same time, been enormous advances made in the design aids available to the mine planner. Computer simulation of the various options, whether it be for mine design or equipment selection, provides detailed information for decision making in real time. A significant challenge to the engineer/planner is how to best use the aids avail-able. Because of the widespread use of commercially available and in-house computer software by industry, this section does not deal with the details of planning (for basic coverage of mine development, see Section 7). Rather, some of the basic concepts are stressed. The principles involved in equipment sizing and selection are discussed. A highly important but sometimes over-looked aspect of planning, haul road design, is also covered. For surface mining operations of the future, in-pit crushing and conveying will become even more important. Some of the considerations for application evaluation are included. The section concludes with some future concepts for surface mining.

Jan 1, 2008

By James W. Evans, Brian R. Wildey

"Carbon has been the principal reducing agent in producing metals for centuries. Carbon is an inexpensive reducing agent, but also an effective one, as any undergraduate who knows her Ellingham diagrams is aware. Even in the production of aluminum, an electrolytic process, carbon consumed at the anodes serves to reduce the voltage of the Hall-Héroult cell. The interest in reducing the amount of anthropogenic CO2 has led to this examination of whether a switch to hydrogen as a major reductant is feasible and economic. The main source of hydrogen is natural gas and its production entails the generation of CO2; however, that CO2 is more easily captured than, say, the CO2 leaving an iron blast furnace. Calculations and speculations lead to conclusions about whether there is significant benefit to be obtained from such a radical change in our way of producing metals and the approximate cost of such change.IntroductionThe 1991 paper by Forrest and Szekely1 was one of the first to examine the impact of CO2 emissions from the primary metals industries on global climate change. These authors compared data from 1968 and 1985 and reported a drop in carbon emissions from 115.8 million tons to 65.6Mt over this period, the latter figure representing approximately 1% of the world’s greenhouse gas emissions. Much of this reduction was due to a drop in steel output (with carbon emissions increasing within the aluminum and copper industries in this period) but some were due to technological changes such as increased use of continuous casting. A more recent paper on CO2 emissions, focused on the steel industry in Japan, is that of Ariyama and Sato2. These authors report CO2 emissions of 182.4Mt from the Japanese steel, industry in 2003, down from 194.8Mt in 1990. The former represents 14% of the GHG emissions for Japan in 2003. Much of this emission is from ironmaking and the authors break these emissions down into"

Jan 1, 2008

Selective leach analytical techniques applied to surface geochemical samples in the search for deeply buried mineral resources gained popularity in the late 1990s. Several commercial assay laboratories introduced their own selective leach methods, adding to the few established commercial methods at that time. Many of these laboratories promoted their methods with orientation data showing favorable responses to both precious and base metal mineralisation, concealed beneath extensive thicknesses of overburden. However, many explorationists remain confused about the utility of these geochemical methods. This confusion is due primarily to the lack of objective orientation surveys over significant mineralisation, comparing all commercially available selective leach methods and to the lack of a creditable theory explaining the formation of these selective leach anomalies. An EXTENDED ABSTRACT is available for download. A full-length paper was not prepared for this presentation. An orientation survey was designed to fill the first void û an objective survey over significant mineralisation. With the help of 17 mining companies and assay laboratories, an orientation survey was conducted over five significant covered gold deposits in Nevada, USA , representing over ten million ounces of gold. Hopefully the results of this survey will help provide fuel for those working on the second void û a theory to adequately explain the formation of these selective leach anomalies.

Jan 1, 2008

By Donald W. Gentry

This section deals with one of the most fascinating aspects of mining the evaluation of mine investment opportunities. Be-fore proceeding further, it is important to clarify the meaning of some fundamental terms used frequently in the text. 6.0.1.1 Mine Valuation vs. Evaluation The words "valuation" and "evaluation" in a mining context are often used interchangeably. However, for the purposes of this section, a distinction is made between the two terms in accordance with commonly accepted practice. The word valuation in a mining project context has the rather narrow meaning of placing a dollar or other currency value on the worth of the project as a whole. In other words, the value of a mining project refers to a measure of the desirability of ownership of that property. As such, the major item of interest is, "what is the mine worth?," or `what is the value of the mine?" The value of a mining project may actually be determined in the marketplace at any specific point in time, or it may be estimated by one of several methods. The topic of mine valuation is discussed in more detail in Chapter 6.1. The word evaluation in a mining project context connotes the broader meaning of determining the numerical values of all

Jan 1, 2008

By Donald A. Ranta

Every mineral project or mine is based on a geologic entity-an ore (mineral) deposit. A well-defined mineral deposit and its associated geologic characteristics are the only aspects of a project that cannot be altered. Mine plans can be modified to exploit the deposit using alternative approaches and yielding similar results. A variety of processing methods also are often available producing generally comparable results. Major modifications can be made to other aspects of the project without substantially changing project economics. However, all engineering and metallurgical aspects of a mine must be accommodated to the spe¬cific location and geologic characteristics of the deposit. Geologic data and interpretations form the foundation for both mine evaluation and mine production by providing esti¬mates of reserves and essential information for mine planning and process design or control. Proper geologic work requires a keen awareness of and an ability to anticipate the technical requirements of geotechnical engineers, hydrologists, mining engineers, metallurgists, and other specialists. Geologists are inte-

Jan 1, 2008

By Thomas V. Falkie

In bygone days, the mineral engineer spent most of his/her time on the technical aspects of designing, building, and managing mineral operations. In the last few decades, mostly since the 1960s, increasing amounts of engineering man power and time are spent dealing with federal, state, and local government agencies, laws, and regulations. It is not possible to plan, design, build, or operate mines, mills, smelters, or even office buildings without detailed consideration of government regulations and permitting requirements dealing with environment, worker health and safety, etc. The four chapters of this section provide an overview of the social, legal, political, environmental, and health and safety aspects of mineral enterprise. The section sets the stage for the working engineer/geologist in industry, government, consulting, or academe and points the direction for more detailed study in each of these areas.

Jan 1, 2008

By P F. Knights, P Boniwell

This paper investigates the causes of low effective utilisation of the production drill fleet at the Telfer Underground Gold Mine, as measured by the percussion hours per shift. The first part of this paper focuses on a site time and motion study conducted to accurately identify shift time allocation and optimal drilling parameters (manual versus automatic, and suitable flushing mediums for varying ground conditions) as well as quantifying the business potential for automated or remotely operated production drilling. The second part of the paper focuses on the rate of successful hole completion for automated production drilling during shift changes. Two main areas of drill optimisation were identified. Firstly, a site-specific drilling procedure was established so as to ensure that all operators were drilling using optimal parameters. Total production metres per rig increased by 10.7 per cent as a result of the implementation of this standard. It was observed that a 25 per cent faster overall drill cycle was achieved using air mist flushing, and that manual drilling achieves a 19 per cent faster overall drilling cycle in comparison to automated drilling. Secondly, routine provision to the maintenance department of automation reliability reports that outlined the principal causes of unsuccessful hole completion led to an increase in production metres of a further 4.1 per cent, measured between January 2007 and August 2007. First hole automation reliability increased from 39 per cent to over 77 per cent over the same time period. Second hole automation completion was increased to 74 per cent, leading to a higher proportion of production achieved through automated technologies.

Jan 1, 2008

Minerals are fundamental to the U.S. economy, contributing to the real gross domestic product (GDP) at several levels?mining, processing and manufacturing finished products. The estimated growth rate for the real GDP of the United States was 2.1 percent and the nominal GDP was about $13.8 trillion in 2007 (Table 1). The prime interest rate decreased to 7.25 percent in December from 8.25 percent at the beginning of 2007, reflecting actions taken by the Federal Reserve Board to counter financial difficulties surrounding subprime mort-gages. Delinquencies on subprime mortgages increased throughout the year, affecting not only the delinquent home owners but also financial instruments invested in mortgage-backed securities. The average contract mortgage rate for the purchase of previously occupied homes in the United States was 6.35 percent in November; a slight decrease from 6.37 percent in January but still greater than 5.34 percent reported in July 2003, the lowest rate in the past five years. With the tightening of credit, the seasonally adjusted annualized rate for new privately owned housing starts declined 27 percent from December 2006 to November 2007. The loss in the residential market was balanced by a 9-percent increase in nonresidential construction between January and August 2007, during which slight increases occurred in nearly all

Jan 1, 2008

By Raja V. Ramani

Discussion in this section of the Handbook is limited to the working environment of miners, the mine workers themselves, and the machines used in mining (Fig. 11.0.1). The contents emphasize personnel health and safety aspects and engineering design and control practices to ensure a productive health and safety environment. Reference is to the health and safety of the individual miners as well as to the safety of the working environment. This Handbook also contains references to health and safety regulations in Chapter 3.2 and environmental protection in Chapters 3.4 and 7.3.

Jan 1, 2008

Rosebery Mine is situated on the west coast of Tasmania and is AustraliaÆs largest volcanic-hosted base and precious metals deposit (zinc, lead, copper, gold and silver). The milling operation has been producing zinc, lead and copper concentrates continuously for over 100 years. RoseberyÆs long life demonstrates the operation to be high grade, and high margin, capable of operating through several commodity price cycles. Paradoxically, throughout this long history the ælife-of-mineÆ as defined by proven and probable reserves has been short. Zinifex has demonstrated its commitment to discover the future of Rosebery with the growth project æProject HorizonsÆ. The aim of the project is to extend the life of mine beyond 2020, with an additional exploration expenditure of $19 million over three years. Despite the maturity of the deposit, early success has confirmed the potential with the discovery of new resources. Mine planning strategic studies are challenging established paradigms of mine production, throughput rates and metal cut-off grades. Discovering the optimal process rate for Rosebery, by examining the æHill of ValueÆ and underground mine optimisation is proving critical to the best exploitation of RoseberyÆs rich resources. The promise of finding a mine within a mine is being realised, with new lenses being delivered by exploration success and real grade/tonnage options optimised through dynamic mine planning. The future of Rosebery is co-dependent on these two areas of discovery. This ensures capital expenditure decisions are informed, to secure the next 20 years of wealth creation and beyond.

Jan 1, 2008