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By Robert B. Parsons

"Although the April 19, 1983 federal budget appears to put greater emphasis on new or expanded government spending programs in an effort to get Canadians working again, the budget proposals contain a light sprinkling of tax changes which could be of some direct benefit to the mining industry.This month, Tax Notes examines some of the more important of these changes.IntroductionSome sectors of Canada's mining industry could benefit from the proposed income tax changes announced by Finance Minister Lalonde in delivering his budget address to the House of Commons on April 19, 1983. Improved depletion allowance rules, expanded investment tax credits, better use of business losses, and inflation proofing of personal capital gains on Canadian common shares are all part of the measures included in Mr. Lalonde's first budget to try to reinvigorate the battered Canadian economy.Improved DepletionUnder the Income Tax Regulations, a taxpayer who incurs Canadian exploration expense (and certain other eligible expenses) is permitted to deduct not only the full amount of the Canadian exploration expense (""CEE""), but also an additional allowance (the so-called earned depletion allowance) equal to one-third of the CEE. Thus, a taxpayer in certain circumstances can claim a deduction of $1.33 for each $1.00 of eligible expenditure, including CEE.Although CEE can be deducted from any source of the taxpayer's income (for example, from investment income, salary income, and so on), prior to budget date the earned depletion allowance was deductible only from the taxpayer's resource profits. This restriction on the deductibility of the earned depletion allowance substantially reduced the attraction of the allowance: few individual investors or investment companies, for example, have the required stream of resource profits, at least when the CEE or other eligible expenditure is made."

Jan 1, 1983

By Marc C. Betournay, John E. Udd

"In this study, the authors investigated the stabilities of slopes cut predominantly into Trenton limestone in a large quarry in the Montreal region. Analyses of the bench and pit walls indicated that small-scale toppling, ravelling, and wedge failures are the most likely modes of instabilities. Because most of the joints dip steeply, however, the conclusion was made that relatively high walls could probably be justified.The field investigations were supplemented with the determinations of the shearing strengths of artificial discontinuities that were cut into samples of the limestone. The properties of a fine-grained limestone were found to be influenced very much by the magnitudes of the loads that were applied, while the properties of a crystalline limestone were found to be much less, or not load-dependent.The study is one of a number that are being conducted in this area.IntroductionExtensive quarrying has been done in the sedimentary strata of the Montreal area for a very long time. By any standards, it can be said that the Island of Montreal is a major mining area. At present, approximately 20 quarries are being operated in, or near, the city of Montreal.In addition to the millions of tons of limestone that are removed each year, a large number of excavations for foundations are cut into the sedimentary rocks.To date, however, very little information has been published concerning the engineering properties of the local geological materials. No mention is made of this aspect in the references which are presently available.Because of this lack of information, the senior author has initiated a study in which the strength properties of most of the rock types, and of the natural discontinuities contained in these, would be investigated. To date, the results of one other investigation have been published and other work is in process. It is hoped that the end result will be a comprehensive knowledge of the important strength properties of all of the rocks in the entire region."

Jan 1, 1983

By Christopher Andreae

"Years before the present iron and steel works were established at Sydney, several thriving although short-lived iron work s operated in Nova Scotia. These furnaces reflected the general nineteenth-century North American experience with iron work s. At the beginning of the century, small furnaces struggled to supply local needs. Charcoal was the principle fuel and water powered most furnace equipment. By the end of the century, a few huge primary iron and steel work s dominated production for Nova Scotia and the rest of Canada.Two sites achieved prominence in the nineteenth-century Nova Scotia iron industry: Londonderry and Ferrona. Londonderry, the larger and longer-lasting of the two sites, is today a small village on the south flank of the Cobequid Mountains, about 30 km west of Truro. Prior to the establishment of an iron works in 1849, no community existed. At the peak of operation in the 1880s, however, over 2,600 people were located there. The second site, Ferrona, today is a mere crossroads on the map, about 10 km south of New Glasgow. Following the construction of a blast furnace there in 1892, a small village grew up around the furnace, but once the furnace was blown out in 1904, the population gradually drifted away.Early HistoryThe history of Nova Scotia's iron industry began in 1604 when Samuel Champlain became the first European to identify iron ore in the future province. Despite this early acknowledgment, iron was not smelted commercially in Nova Scotia for another two hundred years. Although primitive smelters of the period produced more iron than could be used locally, early settlers depended on imports of iron from Britain and the United States."

Jan 1, 1983

By James K. Gowans

"Cominco Ltd's Polaris Mine, located on Little Cornwallis Island, Northwest Territories (latitude 75degrees 30') went into production in late 1981, becoming the world's most northerly base metal mine. The concentrator, powerhouse, shops, offices, dry and warehouse, were uniquely designed and constructed on a 100f t wide by 400 ft long by 65 ft high barge. This process barge was constructed in southern Canada at Trois Rivières, then towed 3,500 miles into the High Arctic Islands and beached on Little Cornwallis Island.The paper deals with the original design philosophy, flowsheet and the initial year's operation of the Polaris process barge.IntroductionTo bring a mining property into production in the Canadian High Arctic, a company must deal with the harsh environment, the short shipping season and the high cost of labour. In trying to minimize the effect of these fact or s, the concept of a barge-mounted process plant was investigated as an alternative to the conventionally built concentrator. Cominco's previous experience gamed at the Black Angel Min e on Greenland's west coast suggested that this would be a practical alternative.The normal shipping season at Little Cornwallis Island is approximately six weeks long, from mid-August to the end of September. All equipment and materials must be delivered during the ""shipping window"". The logistics problems are enormous; if the conventional approach had been used the major process equipment would have been delivered to Little Cornwallis Island at the same time as the completed barge actually was! Construction would also be starting at the start of the worst climatic conditions, the Arctic winter. Nine months' production was gained by opting for the ""barge"" approach."

Jan 1, 1983

By Dallas W. Davis

"Since May 1980, New Brunswick has called separate tenders for the right to explore and develop several potash prospects, as well as areas underlain by Alberta oil shale. These tender calls had in common the provision for a basic ad-valorem royalty, combined with sharing of cash flow after exceeding a 15-20% discontinued cash flow rate-of-return threshold. In the case of potash, the bidding variable was a share of cash flow, but for oil shale it was exploration expenditures committed, with the cash flow sharing to be negotiated at the time of application for a production lease. The Millstream potash occurrence, previously discovered by government drilling, received five bids (21.1% highest), the Dorchester ""grassroots area"" with four surmised drill targets apparently received no bids, and in the case of oil shale there were only two bids on the one block previously subjected to the most exploration.It is concluded that New Brunswick will not be successful in awarding the potash or oil shale rights in return for a comparable level of basic royalty and cash flow share as in the case of Millstream, unless it spends money in discovering prospects or sharing the exploration risk with companies. The approach is likely to work for oil shales only if current exploration proves the existence of much high-quality material or a definite trend of real increases in the price of oil is again established. Undoubtedly, it continues to be desirable to assure an on-going stable investment climate through award of potash and oil shale rights under terms which provide for a return that the public and future governments will consider fair. This could mean that some form or risk sharing with companies would be advisable."

Jan 1, 1983

By N. Saracoglu, J. P. Golightly, R. H. Wallis, J. J. Brummer

"In January 1974, the Minerals Division of Canadian Occidental Petroleum Ltd. made the strategic decision to add uranium to its active exploration commodities and through compilation studies selected northern Saskatchewan as the most attractive and cost-effective exploration area in Canada. In August 1974, 100 sq. miles were staked adjacent to Gulf Minerals' Rabbit Lake deposit and east of the Esso Minerals Midwest boulder train. Initial exploration was based on geologic models of the Rabbit Lake deposit.In the summer of 1975, surface surveys delineated radon anomalies which were drilled that winter and found to overlie anomalous concentrations of uranium in the regolith which forms the upper unit of the crystalline basement. Within the crystalline basement, one hole intersected graphite and pyrite with anomalous nickel-cobalt-arsenic. Geochemical and radiometric surveys followed in the summer of 1976. Drilling in the winter of 1977 intersected several zones of graphite and also anomalous, but uneconomic, uranium abundances. Also in 1977, Dahlkamp and Tan (1977) described the coincidence of graphite and uranium at Key Lake and ground EM surveys on CanadianOxy claims detected graphite conductors beneath 250 ft of Athabasca sandstone. Inco Limited joined the project in April 1977 as a 50% partner. The project area was then surveyed using the airborne INPUT EM method, which detected 84 miles of conductors, with associated graphitic metasediments. On the ground these were located with MaxMin surveys, and follow-up drilling located the ""Tent"" Lake uranium zone.In 1978, the Midwest and Dawn Lake discoveries were announced, 7 miles and 2 miles west of the Joint Venture (J.V.) claims; and, in part for this reason, the 1979 winter drilling was concentrated on the deeper west side of the property. Exploration hole 102-79 intersected altered and uraniferous rocks, but stepout holes were barren. Drill hole 153-79 tested an under-snow three-station radon anomaly east of hole 102-79 and intersected 33 feet of 7.51 % U3O8, confirming the disco very of the McClean North zone. The geophysical grid of the McClean North conductor system was extended and detailed a strong, continous conductor to the south, called McClean South. This was drilled in January 1980and hole 1004-80intersected 22 feet of 2.95% U3O8."

Jan 1, 1983

By P. C. Thurston, T. Setterfield, D. H. Watkinson

"The Maybrun copper deposit IS In a succession of pillowed basaltic flows in the Wabigoon sub-province, northwestern Ontario. The rocks have primary flow morphologies and remarkably well-preserved crystallization textures, including quench-textured plagioclase, in spite of metamorphism to the amphibolite facies. The sulphide assemblage chalcopyrite-pyrrhotite-cubanite with minor sphalerite and pyrite is primarily in interpillow spaces and is stratabound. Basaltic rocks immediately enclosing the copper sulphide minerals have an enrichment in Fe, Mg and K and depletion in Ca and Na relative to surrounding flows. The Maybrun deposit is interpreted to have formed contemporaneously with volcanism and alteration, and was subsequently metamorphosed with the enclosing basalts.IntroductionThe association o f significant base metal accumulations with mafic submarine flows in the Archean is as yet poorly documented. Such deposits, where noted, have typically been small, and are therefore commonly over looked. The Maybrun Mine, a 2.6 x 106-tonne copper deposit in pillowed basalt, has many similarities with large, well-documented volcanogenic deposits. Given the interpretation of the Maybrun Mine to be volcanogenic in origin, there is n o reason why similar processes could not produce large deposit s. This is an important realization in an area where Archean submarine mafic rock s are very common, but frequently are examined only superficially. As gold commonly occurs in deposits such as Maybrun, even modest-sized deposits may be economic. The basalts at Maybrun are remarkable for amphibolite-facies rocks because of their extremely well-preserved delicate volcanic textures, including quench textures.The Maybrun Mine is one kilometre south of Atikwa Lake, in the Wabigoon sub-province of the Superior structural province, 75 km southeast of Kenora, northwestern Ontario, at longitude 93°35'W, latitude 49°25'N (Davies, 1973). Archean metavolcanic and metasedimentary rocks and intrusions underlie the area. Goodwin (1970) concluded that the mafic and minor felsic metavolcanic rocks, as well as the overlying metasedimentary rock s, were an eastward extension of the lower cycle of the Keewatin type section for the Lake of the Woods area. He estimated that the stratigraphic thickness of Keewatin rock s in this area is about 6900 m, of which 87% is basalt. The flows contain numerous interlayered sills, predominantly of basaltic composition; they have been extensively folded, faulted, metamorphosed to amphibolite facies and intruded by numerous felsic bodies, most importantly the Atikwa Batholith."

Jan 1, 1983

By Y. P. Malhotra, JE. C. Carter

"Syncrude's overburden removal requirement ranges from 20 million to 30 million bank cubic metres per year to meet tarsand demands for the production of 129,000 barrels of synthetic crude oil per day. The economic tar-sand lies beneath a variable thickness of overburden materials, composed of silts, clays, some sands of lacustrine origin, wind-deposited sand dunes, and out-wash sands and gravels.For the removal of overburden, Syncrude commissioned its own mobile equipment fleet in January 1981. This fleet consists of two Demag 241 hydraulic shovels, ten Titan 33-15B trucks and support equipment. Prior to this, all overburden removal was being carried out by contractors.This paper presents an overview of overburden removal at Syncrude, with particular reference to the performance of its own fleet.IntroductionThe Syncrude Tar Sands Plant was officially opened on September 15, 1978. After an expenditure of approximately $2.26 billion, the second and the largest commercial tarsands plant was on stream toward a permit production rate of 129,400 barrels of synthetic crude oil per day. The Syncrude Plant, a joint venture of six oil companies, the federal government and the Alberta government, is a major step forward toward the goal of Canadian energy self-sufficiency.The Mildred Lake operation of Syncrude Canada Ltd. Is located 40 km north of Fort McMurray and 480 km northeast of Edmonton in the Province o f Alberta.Synthetic crude oil leaving the plant is a blend of two-third s gas oil and one-third naphtha. The two streams combine in a pipeline and flow to Edmonton. The product takes six days to make the journey, arriving at four locations in the city Imperial's Strathcona Refinery, Gulf's Edmonton Refinery, the Interprovincial pipeline terminal and the Trans-Mountain pipeline terminal. Each Syncrude owner receives a share of oil equal; to its percentage of ownership in the project. At the present time, the oil is being utilized by Canadian refineries from Vancouver to Montreal."

Jan 1, 1983

By Rory S. McLaren

"Cost per ton as it relates to mobile underground vehicle maintenance and repair is invariably astronomical. The reason: the mechanic replaced a ten micron filter with a 250 micron filter because it appeared to be physically identical; the purchasing agent bought ""Brand X's"" filter because it was 25% cheaper- the result, a filter life 30% less; the hydraulic pump was sent for repair at a cost of $2000.00 and failed shortly after installation; pumps are failing because there is no testing equipment available in the workshop.This paper will identify a number of the common pitfalls resulting in high costs, and offer solutions to bring these costs to within acceptable limits.The following key issues will be discussed:A. Genuine parts replacement versus ""Brand X""B. Evaluating outside repair shopsC. The influence of environmental conditions on optional equipmentD. Personnel trainingE. Servicing and testing equipmentIntroductionThere is an old English aphorism, ""Look after the pennies, the pounds will look after themselves"".This paper is aimed at the pennies.Genuine Parts Replacement versus ""Brand X""High interest rates and floundering mineral prices are forcing many equipment owners and operators to purchase ""Brand X"" or ""Pirate"" parts in order to survive. ""Pirate"" part manufacturers invariably offer lucrative discounts which are most appealing to the average purchasing agent whose responsibility it is to save money. Unfortunately, in most cases, there is a tradeoff involved; when the price drops so does the quality, which can adversely affect owning and operating costs. Unless totally obvious, ""original"" or ""pirate"" part metamorphosis requires scrupulous analysis by competent individuals.Hydrostatic transmissions have been used successfully for many year s in various industries. They found their way into mobile underground loaders in the early seventies and have since become very unpopular in mining circles due to their apparent ""inherent unreliability"" and near ""prohibitive"" repair costs. The big benefit of the hydrostatic transmission is compact component packaging which enables the machine to work in very small headings."

Jan 1, 1983

By Kri Inwood

"IntroductionIn 1879, when the Dominion government initiated its controversial program of industrial promotion, iron smelting in Canada was limited to one company producing coke iron on the mainland of Nov a Scotia and three small charcoal blast furnaces in Quebec. There was no steel production. By the eve of the first great war, iron and steel were being produced in very large quantities, the companies active in 1879 had disappeared and new centres of integrated iron and rolled steel production at Hamilton, Sydney and Sault Ste. Marie had come to resemble the industry as we know it today.The most dramatic change was that at Sydney, Nova Scotia, where in the early 1900s, two steelmaking companies established works. The Sydney developments have been explained as the result of resource discovery and technical change. W.J. Donald, in his authoritative account of the Canadian iron and steel industry, observes:""The most rapid growth of the Canadian iron and steel industry has occured since 1897... The remarkable growth has been caused largely by the new conditions of the industry. The discovery and use of Newfoundland ores, together with the availability of Cape Breton coal, has made the Nova Scotia industry not only possible but profitable ... It is a safe conclusion that the Canadian industry would not have been an important one, had it not been for the discovery of the Michipicoten and especially the Wabana (Newfoundland) ores""Donald also argues that metallurgical progress had been necessary to render the ores valuable,""Newfoundland ores ... contain a considerable amount of phosphorus, and were made available for steel-making by recent inventions.""The purpose of this paper is to re-examine Donald's story. It will be argued that the origin of steel -making at Sydney is somewhat more complicated than Donald has indicated. The difficulty with Newfoundland ore extended beyond its phosphorus content and a resolution required more than the basic open hearth furnace identified by Donald. Moreover metallurgical change was only one of several developments necessary to induce industrial investment at Sydney. Surprisingly, however, the discovery of iron ore in the late nineteenth century does not appear to be part of the explanation."

Jan 1, 1983

By J. K. Gowans

"INTRODUCTIONTo bring a mining property into production in the Canadian High Arctic a company must deal with the harsh environment, the short shipping season and the high cost of labour. In trying to minimize the effect of these factors, the concept of a barge-mounted process plant was investigated as an alternative to the conventionally built concentrator. Cominco's previous experience gained at the Black Angel Mine on Greenland's west coast suggested that this would be a practical alternative.The normal shipping season at Little Cornwallis Island is approximately six weeks long, from mid-August to the end of September. All equipment and materials must be delivered during this small ''shipping window."" The logistics problems are enormous; if the conventional approach had been used the major process equipment would have been delivered to Little Cornwallis Island at the same time as the completed barge actually was! Construction would also be starting at the start of the worst climatic conditions, the Arctic winter. Nine months production was gained by opting for the ""Barge"" approach.What the Arctic winters do to the shipping season, so do they affect the productivity and the cost of labour. Construction labour must come from southern Canada. Thus higher transportation costs and higher wage rates, with more overtime and incentives, increase the labour costs to approximately 50% over normal southern rates. Couple these rates with the lower productivity involved with men working in the extreme cold temperatures and the net effort is worth avoiding. A process plant being constructed in Southern Canada can take advantage of more accessible labour at lower costs, increased productivity and a faster construction schedule. The barge concept must still deliver the equipment and materials during the ""shipping window"" but it can in the completed form."

Jan 1, 1983

By G. R. Brough

"Today it is more important than ever to get the maximum possible return on capital invested in the processing industry. To this end the plant is often operated continuously and the choice of equipment is, consequently, extremely important.Screening spans a wide range of particle sizes and there are many different types of screening elements. The following types are common:1. Cloths and elements of rubber.2. Wire mesh screens with round wires.3. Wire mesh screens with profiled wires.4. Perforated steel plates.5. Elements of plastic.6. Gratings of steel beams.7. Gratings of iron rods.We would like to deal with two of these types namely rubber and briefly on plastics.We first introduced rubber screens to the Canadian Mining Industry in November, 1963. This stemmed from a conversation with the superintendant of one of Canada's largest screening plants containing 48 vibrating screens, with an average wire cloth life of 10 to 12 days. We contacted the manufacturer of rubber screen cloths who had supplied rubber screens to a mine in Northern Sweden for a 50,000 ton per day plant in 1951."

Jan 1, 1983

By M. L. Jeremic, G. J. P Delaire

"The mechanical aspects of cable bolt failure are considered from the point of view of properties of grout and cable, as well as of the rock in which it is anchored. The results from recent investigations made in-situ as well as in the lab are combined and presented with reference to other work done in the area. An attempt is made to stimulate the thinking along these lines so as to initiate further research which may enhance the design of cable bolting as it applied to mining operations.IntroductionIn the past twelve year s systematic cable bolting has found application in many areas. In civil engineering rock anchors have been used to provide tension at the heel of a dam permitting the reduction of its cross section. They have been used in retaining walls to reduce construction time and costs by eliminating the need for struts and braces which complicate pouring the foundation walls. It is also possible to use rock anchors in providing reactions where tall buildings are subjected to uplift on one side due to wind forces. Cantilever bridges may be constructed by implementing rock anchors to provide anchorage requirements. Anchorage piles or dolphins or mooring ships have also been built using these. In the mining area rock anchors, commonly known as cable bolts because they are made of hoist cable may be implemented in the reinforcement of hanging walls or to retain rock slopes.In order to sustain de-pressurized ground where rock separation developed along the pressure arches, cable bolts were utilized at the Tsumeb Mine in South-West Africa and also at the Strathcona Mine in Sudbury, Ontario, In both places old degreased hoist ropes were installed in downholes from crosscuts above a given stope and then grouted without tensioning. Jeremic and Cassidy described the use of cable bolts to increase hanging wall stability and postpone fracturing, in addition to producing pre-support for improvement of stope back stability."

Jan 1, 1983

By N. Lecuyer

"During early 1980, pre-production work commenced at the ""Les Mines Gallen"" project, north of Noranda, Quebec. As a result of the acid mine water associated with this property, a major pre-production phase included the installation of a water treatment plant to render the water environmentally suitable.This paper emphasizes the planning, installation and operational factors of the treatment plant necessary to the success of the mining operations and the maintaining of a clean environment.Introduction,T he Gallen Project is a zinc, gold and silver open-pit mining operation approximately 10 kilometres north of Noranda, Quebec. This property has a long history, with initial diamond drilling done in the early 1930s and underground mining taking place between 1953 and 1962. This property was reactivated in 1980, with production scheduled a t a rate of 45,000 ton s per month.Included in the reactivation plans for the property was the installation of a water treatment plant to treat the acidic mine water.Plant DesignThe requirements for the Gallen water treatment plant were two-fold. Firstly, it was necessary to neutralize the acid water and secondly to produce a sludge containing metal hydroxides and sulphates which would be stable when stored, and a clarified overflow meeting governmental regulations to be discharged to the environment.The flow sheet (Fig. I) will explain the process in treatment of the acid water.Acid mine drainage is treated with lime to increase the pH to 9.50. Metals in solution are precipitated as metal hydroxides and the 504 as calcium sulphate. The precipitate slurry is then aerated to convert ferrous iron to ferric iron, which is more stable for storage and disposal.The precipitate is next flocculated with a polymer flocculant and settled in the thickener to produce a sulphate/Hydroxide sludge and a final effluent discharged to the environment."

Jan 1, 1983

By Peter Babik

"Cable TV networks are extensively used throughout Canada for TV signal distribution. Mobile/portable radio communications are also used extensively throughout all sectors of industry. There are numerous manufacturer supplying these industries with a wide variety of equipment and accessories.IAL's underground radio communications system combines the techniques of cable TV and mobile radio to produce a flexible communications system with most of the advantages of both systems. Standard off-the-shelf mobile, portable, base-station and repeater equipment can be used. The equipment may need modification to be customized to particular end user requirements, but does not require a complete new unit redesign. Likewise, the cable TV distribution equipment is off the-shelf, with some items requiring modification for underground system application.Radio communications can be provided wherever the cable system is extended. Where traffic or type of activity warrants it, multiple radio channels can be provided on the same cable. Certain radio channels could also be used with data channels for control or supervision of remote equipment or environmental conditions. In addition, the same cable can be used to distribute or monitor signals from remote TV cameras in selected or dangerous areas. The system can be interfaced to a telephone system, if required, to provide extended communications to above-ground workshops, offices, medical stations or even hospitals and other emergency services.IntroductionReliable communications among personnel throughout an underground mine area have long been the dream and goal of various mine operations personnel. The system to be described was designed to meet this objective."

Jan 1, 1983

By R. A. Rabnett, G. Paget, Patrick Walsh

"Tumbler Ridge, Canada's newest resource community, has been developed differently than have been other resource communities.Since its conceptualization, emphasis has been placed on the establishment of a traditional municipal government at early a stage as possible.Planning f or the community goes back to 1977. By then, extensive study by provincial agencies had shown a new resource town would be required to exploit north east coal. The Ministry of Municipal Affairs, in conjunction with a consultant named R.A. Rabnett began the extensive Tumbler Ridge conceptual plan.The results of the conceptual plan are evident in the organizational and planning goals of Tumbler Ridge. In every aspect from the election of officials to some financial matters, the town functions as a normal municipality. With the resource companies of the North East Coal Development within its municipal boundaries. Tumbler Ridge has been able to debenture its capital projects against its municipal tax base.The town's ability to function as a normal municipality is enhanced by its control over Crown land it has purchased from the province. This gives it further control over the development of the community and helps in establishing agreements with the resource companies and the provincial government to ensure that housing and service needs are met. While resource company representatives sit on certain municipal committees, their roles are advisory in nature.The community continues to move toward full municipal status and will have a fully elected Council by 1986.BackgroundPlanning for the development of northeast British Columbia coal resources began in 1976 under the aegis of the provincial Cabinet Committee on Coal Development. A series of subcommittees were established including a Townsite/Community Development subcommittee. The Ministry of Municipal Affairs chaired this subcommittee and continued as the lead agency for the provincial settlement planning effort over the period 1976 to 1981."

Jan 1, 1983

By R. C. Hartviksen

"The Drumbo Mine is a new gypsum mine located at exit No. 32 of Highway 401 between Woodstock and Kitchener, Ontario. The flat-lying 6-foot (1.8-metre) bed of gypsum is near the base of the Silurian Salina Formation, about 380 feet (116 metres) below surface. The mine is owned and operated by Westroc Industries Limited. A shaft, 12.5 feet (3.81 metres) in diameter, was drilled and then lined with a liner-sinking technique new to this continent. The shaft was completed in the fall of 1977. Gypsum production was started in December 1978, employing a conventional room - and - pillar method of mining.Historical BackgroundA brief mention of gypsum in the Drumbo area is included in a survey of the Ontario gypsum industry by Guillet. This occurrence was discovered in 1958 when National Gypsum conducted some widespread diamond drilling. Western Gypsum Products Limited acquired leases in 1960 and concentrated a drilling program in Blenheim Township near the village of Drumbo; 79 holes were drilled in an area of 1900 acres (770 hectares). Mining rights were then acquired for 170 0acres (690 hectares). A test shaft, 44 inches (1.1 metres) in diameter, was drilled to obtain a 50-ton (45-tonne) bulk sample. This opening will be used as an emergency escape way and for ventilation.Westroc Industries Limited, a wholly owned subsidiary of BPB Industries, has its head office at Mississauga, Ontario and operates gypsum board plants at Mississauga, Vancouver, Calgary, Winnipeg and Montreal. Other gypsum mines are at Windermere, B.C. and Amaranth, Manitoba."

Jan 1, 1983

By J. A. Allan

"The history of the development and application of controlled recirculation systems in U.K. collieries is traced and the theory behind such systems briefly examined. Specific applications for dealing with dust and dust/heat problems in headings, for which practical experience is currently available, are described. Consideration is given to the special features which these systems introduce in the underground situation and to the essential safeguards which are required for their safe use.IntroductionRecirculation of air is a commonly used technique in genera l ventilation and air conditioning practice, but has always been regarded with some suspicion for mining applications. This is perfectly understandable in view o f the hazardous conditions which can occur with dangerous forms of recirculation in mines. However, certain controlled recirculation techniques can offer advantages, particularly in the field s of dust and climate control in headings, provided that they are designed, Installed an d managed with full comprehension o f all aspects of the system and always bearing in mind that from the point of view of serious firedamp ignition risk, headings are potentially the most hazardous places in coal mines.BackgroundProbably the first recorded use of deliberate recirculation in British collieries was reported by Lawton in 1933. This researcher described trials, undertaken under the auspices of a national committee on ""The Control of Atmospheric Conditions in Hot and Deep Mines"", involving attempts to increase the velocity, and thereby the cooling power on hot faces, by means of simple recirculation systems using fans and ducts delivering recirculated air in the opposite direction to the normal face airflow. No significant cooling advantage was obtained and there is no subsequent record of this work being continued. During the discussion on this paper, there was considerable disbelief that fire damp percentages had not increased significantly when air was recirculated, but apparently no attempt was made to establish why this should be. It is of interest to note that J. Ivon Graham, one of the contributors, recommended that recirculation should be tried in stone headings for the control o f dust, as he believed that ""there may be scope for recirculation and filtration of the air under certain circumstances in such headings"". This idea was not developed for another forty years."

Jan 1, 1983

By Robert B. Parsons

"Recent amendments to the so-called ""flow-through share"" rules in our income tax legislation have given a new lease on life to this once popular investment vehicle.The original ""Dome funds"" for exploration in the Beaufort sea recognized the usefulness of flow-through share arrangements, but, by and large, flow-through shares have until recently not been able to compete effectively with other tax shelter instruments-mainly , limited partnership interests.This month, Tax Notes examines the new tax rules for investing in flow-through shares.IntroductionRecent income tax amendments have helped to rekindle investor and industry interest in so-called ""flow-through shares"" as a mechanism for mobilizing funds toward mineral exploration and development activities. In competing for investment funds, flow-through shares have historically placed a distant second in terms of investor popularity, being unable to compete with the more attractive features of limited partnership arrangements. However, primarily as a result of favourable changes to the income tax law, flow-through shares may be well poised for a comeback.This article examines the income tax considerations pertaining to issuing and investing in flow-through shares, and compares the former and the new income tax rules relating thereto. Of course, inasmuch as a flow-through share issue can involve various contractual arrangements between the investor and the issuer, there is a wide range of legal and business factors that generally have to be taken into account. A discussion of these matter s is beyond the scope of this paper, which is restricted to a summary of the special income tax factors attributable to flow-through shares."

Jan 1, 1983

By Michael K. O’Leary, William D. Coplin

"Risks from political instability and government policies restricting equity ownership, local operations and transfers of payments affect the profitability of foreign mining ventures. More than seat-of-the-pants judgments and old-boy networks are required to anticipate these risks and to take actions appropriate to offsetting them. A system for making political forecasts, called the Prince System, and a series of charts relaying risk s to a production of key minerals will be presented.IntroductionFirm s with extractive operations outside their home country do not have to be told that political stability and government decisions play a big role in the success o f their operations. The takeover of copper firm s in Chile during the Allende administration in 1971 and the recent decision by Venezuela to reduce Reynolds Metals equity share in a smelting operation from 50% to 28% are two examples of hundreds of events that have determined the profitability of extractive operations over the past decade. Both risks and opportunities for international firms seeking to produce and market raw materials are heavily affected by political conditions. While news of political events travel much faster than in the past and host governments are more clever in shaping the risks as well as the opportunities, politics has always been part of the mining business.What has changed is the need to be more systematic in approaching the assessment of political conditions and how it affects business. The increasing costs of extractive operations, the need for long-range planning, the importance of financial arrangements and the world-wide scope of man y firm s' activities require that the assessment be updated continuously and be comparable across different countries and different types of investments. Political risk analysis, the assessment o f macro-political changes and specific governmental decision s on the operations of extractive industries needs to become as systematic and integrated into corporate decision -making as economic analysis has become over the past two decade s."

Jan 1, 1983