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By R. A. Sproule

Abitibi Greenstone Belt ? ~2.745 to 2.680 Ga (U-Pb zircon ages) ? Several lithologically-distinct and structurally repeated(?) assemblages ? Represents: ? Allochthonous terranes? ? Single autochthonous terrane? ? Combination of the above Volcanology of Komatiites in the Abitibi greenstone belt ? Tisdale and Kidd-Munro assemblages have channelized flows ? Pacaud and Stoughton-Roquemaure assemblages DO NOT have channelized flows ? Only Tisdale and Kidd-Munro assemblages are mineralized

May 1, 2003

By Karl J. C. Harries

This paper looks briefly at some of the agreements and types of royalties that may be met during exploration activities, but does not go into details relating to them. Agreements can either make or break a deal or relationship. A well drafted, comprehensive and fair agreement can create good relations and trust among the parties and will go a long way towards making a deal work. In the best of all worlds the agreement will be put away and not need to be referred to after it has been signed (but it will be there if needed to sort out potential problems). On the other hand, a poorly drafted agreement or one that is inappropriate to the circumstances or unfair to one of the parties can break a deal and end up with the parties facing each other in that expensive, unproductive and time-consuming occupation ? a lawsuit. Accordingly, it is advisable to involve professional advisers with any agreement. The straightforward one may involve no more that a read through whereas the more complex agreement will require considerable involvement. There is, however, one rule for every explorationist to remember: a professional adviser is only an adviser. His responsibility is to make sure that you have the necessary information to make a reasoned decision but the decision is yours, not the adviser?s. It is your deal, you are going to have to live with it, and it is inappropriate for an adviser to introduce new concepts or amend negotiated ones without your specific instructions. Mineral exploration agreements, although basically option, acquisition and joint participation agreements, come in all the shapes and forms, appropriate to give effect to the endless variety of deals negotiated by the ever-active minds of explorationists. You will note the reference to "joint participation agreements" rather than "joint venture agreements". The latter term was purposely avoided because, with the current activity of explorationists from common law jurisdictions in civil law jurisdictions, it has become necessary for the explorationist to become familiar with corporations and shareholders agreements. As most of you are no doubt aware, under the civil law system a joint venture is normally not recognized as a legal entity and, therefore, joint participation in projects is usually by way of corporations.

May 1, 2003

By Qian Liu

Mining in highly stressed ground conditions has been an increasing challenge at the Brunswick Mine. Two large regional pillars were established on the 1000 m Level to support the ground for safe extraction of the surrounding ore. The South Regional Pillar contains about 5 million tonnes of ore and the North Regional Pillar has about 3 million tonnes of ore. In the fall of 2000, mining activities were suspended following a series of ground movements around the South Regional Pillar along weak geological structures. After extensive geotechnical investigations, a decision was made to carry out a mass destress blast in the West Ore Zone (WOZ) to cut the principal stress across an area of 135 m along strike and 86 m high. At the end of July 2001, the WOZ mass blast was successfully initiated. Following this success the mine decided to take a similar approach to destressing the North Regional Pillar (NRP). The final mass blast was taken in early February 2003. Advanced blasting technologies, including state of the art electronic detonators and blast simulation, played an important role in achieving the successful blasts. The high precision of delay timing and long delay duration of the electronic detonators ensured accurate and reliable initiations of over 800 blastholes in the WOZ mass blast. Orica?s DMC_Blast (Distinct Motion Code) simulation code was used to study different blasting blocks for the desired timing in the initiation sequence. This paper describes the process of applying electronic detonators in complex blasts, and discusses how blast simulation results were interpreted to guide engineering design of the mass blasts.

May 1, 2003

By Graham Swan

The case is presented for the development of a spray-on liner for ground support, but only in the context of a new mining system, consistent with the technical and business case advantages of liners compared to alternatives. Over the past 10 years much effort has been expended in specifying and testing the mechanical/environmental properties of various liners, without actually fulfilling any mining system requirements. The results have been generally disappointing, with no consistent and sustained application in a dayto- day production environment being achieved, anywhere. Central to this shortcoming has been the failure of mining/liner ma nufacturing companies to realise that screen/mesh or shotcrete cannot simply be replaced with thin, deformable liners: success will depend upon closely defining and evolving a new, liner- functional mining system. The paper begins with a discussion of some fundamental technical capabilities and constraints associated with 3M Canada?s liner material that has been developed in partnership with Falconbridge Limited. Intended applications for this liner include the support of bursting ground associated with deep mining conditions. With safe application and consistent performance in mind, the paper argues for a new mining system that derives in the first place from best quality drilling and blasting practices. Taking this as a given, a system for waterscaling and liner application prior to mucking out is proposed, followed by bolting through the liner while arranging for the bolts to be explicitly connected to the liner. Some logistical and equipment related challenges of such a mining system are then reviewed and discussed in the context of the business case for liners. It is concluded that this approach, if successful, will provide the greatest benefits in the areas of safer mining, due to reduction in worker exposure, and in reduced mining cycle times.

May 1, 2003

By Fred C. Delabbio

The successful implementation of a new technology in an underground production mine requires many challenges to be overcome. These challenges include mine hardening of new technology, mitigation of safety risks and hazards, mine operation support, and technology transfer to mine staff. In the end, the majority of these challenges relate to the human aspects of implementation. The approach selected to overcome these challenges must be customized and appropriate for each unique situation. This paper outlines the approach used to address these challenges as part of successful implementation and resulting demonstration of the hydrogen fuel cell locomotive at the Placer Dome (CLA) Limited, Campbell Mine. This technology demonstration at Campbell Mine is critical for determining technical, regulatory and implementation aspects to be incorporated into future fuel cell prototypes such as the LHD project.

May 1, 2003

1.Assessment of methane content in coal. Given a naturally low methane content in 11 Coal Seam and the fact that the areas of the 11 Seam adjacent to the tunnelway were degassing for a very, very long time due to previous development and mining, it is conservatively estimated that the remaining in -situ methane is less than 0.5m3/tonne. 2. Continuous miner cutting rate based on the past practice. The best loading rate recorded at the past operations of Smoky River Coal was 45 seconds for a 8 tonnes shuttle car. Using these records, the maximum peak loading rate potential at the face is calculated at 0.178 tonnes per one second or 10.67 tonnes per one minute. 3. Methane release at the face. ?The actual face methane liberation, conservatively assumed at 40% of the total in situ content: 0.20 m3/tonne ?The peak cutting rate: 0.178 t/sec ?The maximum (peak) face methane release: 0.20*0.178 = 0.036 m3/sec

May 1, 2003

Introduction Gold Mining is an Important Economic Activity in Canada n Total value added during 1990-99 was $15.5 bn n The gold price is an important factor in the value added process n The gold price affects gold mining output, profits, exploration expenditures, employment, etc. Some Factors that Affect the Gold Price n The value of the US Dollar affects the US Dollar price of gold: a weaker US$ correlates with a higher gold price n Supply affects the gold price: the higher the supply on the market each year, the lower the average gold price that year Central Bank Gold Sales n Yearly central bank gold sales add to supply, and affect the price of gold negatively n The negative impact on the price of gold reverberates through the Canadian gold mining industry n Despite the modest amounts, even Bank of Canada gold sales affect the Canadian gold mining industry

May 1, 2003

By J. A. Caceres

Mining planning and mineral processing are almost two unconnected areas. The mining area builds its economical models considering the plant like a constant parameter: a constant throughput, an average recovery and a unitary cost. On the other hand, the mineral processing area assumes a mine plan with grades, ore type, work index, estimating the performances in an independent way. Previous researches have evaluated the advantage for increasing throughput by increasing the liberation size, thus sacrificing recovery. These valuables approaches have left behind the work index factor, critical variable for Recovery-Throughput capacity estimation. This study describes a method combining mineral processing and mining planning. This method incorporates the grinding and flotation performances into the mining economic models optimizing simultaneously the Throughput- Wi(Work index)- Recovery relations with mining sequence, cut-off strategies, and reserve schedules. This method has been used at Andina Mine Chile, showing 18% net present value increasing with minimum investment associated.

May 1, 2003

By Helmer Kraemer

One of the CIM 2003 conference themes is ?Globalization and the impact on mine operations?. In this context, the first official version of the new ?International Rock Excavation Data Exchange Standard? (IREDES) is being released. This new standard is a highly flexible data interface for exchange of information between production equipment and central computer systems. The standard was defined by global players in the mining industry and will soon be used to enhance local operations of global mining companies. Beside the standard definition now other aspects are coming into focus: The question how to design and how to implement IREDES compliant data exchange in practice. Implementation of IREDES covers the following aspects: !" Implementation on in-field production systems !" Communication and networking !" Implementation on databases and commercial IT systems In-field production systems are characterized by a big variety of different automation systems. Therefor, different IREDES implementation philosophies have to apply to those systems. One philosophy uses an integrated IREDES compliant automation system on every machine. The alternative method uses one shared IREDES compliant ?Proxy server? for a number of machines connected to this server using proprietary interfaces. Communication and networking can be integrated openly and independently from hardware infrastructures. The only precondition is that communication and networking has to be Ethernet - TCP/IP protocol compatible. IREDES Implementation on the commercial IT level means to exchange IREDES data sets with databases, simulation software, office packages and special applications. Interfacing is easy as long as the software or the database system provides an interface to the Extensible Markup Language (XML).

May 1, 2003

By Bish Chanda

In the minerals business, like any other commodity-based business, management faces the daily challenge of holding down costs while the real prices of products are continually falling on an inflation-adjusted basis. Since the marketplace sets the prices, often without any premium attached for product quality, being one of the lowest-cost producers is the most viable competitive strategy. Continuous improvement is the mantra that can make the difference in terms of long-term survival of a mining company. Yet, this message has not always been followed, especially during periods of prosperity ushered by high commodity prices. More often than not, the need for improvement is only triggered by a crisis. This may be caused by events such as the onset of a severe economic recession, a prolonged oversupply situation due to an optimistic expansion of capacity during the period of prosperity, or simply falling profits alerting management to bring costs under control. At that time, there would be a need to implement a new cost-saving program, bring in a consultant to find ways to reduce costs, or re-activate an old program that had been shelved for some time.

May 1, 2003

By Peter A. Witt

Highland Valley Copper is a conventional truck-shovel mining and flotation concentrator operation located some 75 kilometres southwest of Kamloops, B.C. (Figure 1). The ore is located within a porphyry copper deposit and is mined at a rate of 135,000 metric tonnes per day from two separate open pits. The nearby mill produces concentrates containing 375 million pounds of copper and 5 million pounds of molybdenum metal yearly. In the Valley pit, head grades are roughly 0.40% Cu at a 0.23% Cu equivalent cut-off. The Valley pit strip ratio currently sits at 0.55:1 with waste quantities made up of separate rock and unconsolidated overburden units. From the mill, concentrates are trucked to nearby Ashcroft and then hauled by rail to ocean port facilities in Vancouver. The mine employs 950 persons and is planned to operate until 2009. The operation is a partnership between TeckCominco with a 63.9% interest, BHP Billiton holding 33.6%, and others 2.5%. Management is shared by the two principal owners and directed by a management committee.

May 1, 2003

By Joel Werner

Weak metal prices, declining head grade, and increased operational costs are forcing many open pit mining companies to look to their balance sheets for significant cost reductions in order to remain competitive. Maintenance continues to represent a significant proportion of the total operating costs in the mining industry. Compared with the other major cost components of the mining process very little effort has gone into maintenance optimization. The potential payoff from maintenance optimization on the cash cost of the commodity is enormous. A large percentage of these costs are incurred in unscheduled maintenance events, which typically cause serious disruptions to the production process. These maintenance induced production losses can be a significant contributor to the overall operating costs. A structured proactive maintenance approach using the latest advances in technology can achieve dramatic cost reductions and productivity improvements. Remote condition monitoring systems are becoming increasingly commonplace and have the potential to identify problems prior to failure. Detection of equipment degradation prior to failure will enable repairs to be scheduled thereby reducing costs and interruptions to production. Remote condition monitoring technology has evolved rapidly in recent years, with a host of new tools becoming available to assist mine operators in improving their maintenance operations. These tools have capabilities such as: remote real-time vital signs and performance monitoring, alarm/event handling, trend analysis, and maintenance workflow management. When these monitoring tools are used in conjunction with a mine management system the vital signs data can be integrated and associated with maintenance history, predictive maintenance data, operational information, and geographical information. This integrated approach to the management of vital maintenance data will help shift the mobile equipment maintenance paradigm from reactive to proactive. This paper will introduce a proactive approach to the management of the maintenance process and the tools required to facilitate this process.

May 1, 2003

Kahama Mining Corporation Limited (KMCL), a wholly owned subsidiary of Barrick Gold Corporation, operates the Bulyanhulu gold mine. The operation has been in commercial production since April 2001 and is the first modern underground mine to be developed on the Lake Victoria goldfield in Tanzania. Bulyanhulu is located in a major mineralised system along an emerging gold trend. This area, the Lake Victoria Greenstone belt, has been the focus of significant exploration and development programs since 1994, with over 34 million ounces of gold having been discovered and four new mines commissioned. The Bulyanhulu project has accounted for just over a third of the gold resources discovered during this period. From an initial exploration program, which outlined a resource of 1.37 million ounces of gold, Bulyanhulu now hosts a reserve of some 12 million ounces in a resource base, the limits of which are, as yet, undefined. The Bulyanhulu property is located approximately 56 km south of Lake Victoria, in northwestern Tanzania, eastern Africa. A Mining Licence issued by the Government of Tanzania on July 23, 1999 grants to KMCL the exclusive right to mine a concession area covering 51.48 km2. The property is reached via a 75-km road from the main road to Dar es Salaam. The nearest towns are Mwanza to the north on Lake Victoria, 155 km by road and ferry, Kahama, 86 km by road to the south and Isaka, 126 km by road. Isaka is on the rail line between Mwanza and Dar es Salaam and has facilities to receive heavy equipment, and a fuel depot. A gravel airstrip, 1,700 m long has been constructed at the property.

May 1, 2003

By Bennett McLaughlin

The Penna Shaft is the deepest single?lift shaft in North America. AGNICO-EAGLE started sinking the Penna shaft in 1995 with a hoisting plant capable of hoisting 1 800 tonnes per day from a 2 240-metre deep shaft. Exploration success at depth lead to the replacement of the existing double drum hoist by another double drum hoist capable of hoisting 7 000 tonnes per day. The use of another double drum hoist, instead of a Blair Multi-Rope winder, to hoist 24,5-tonne skips was only made possible by lowering the safety factor. This paper describes recent experiences at Penna and in South Africa, and examines the possibility of extending the double drum hoisting system to a depth of three kilometres.

May 1, 2003

By A. C. Wilson

In 1991, local prospector C. ?Mickey? Clement recovered at least three alluvial diamonds from the Michipicoten River. Two of these stones were sent to the Department of Mineralogy, Royal Ontario Museum, where they were identified as industrial grade diamonds with weights of 1.05 and 1.13 carats. Both stones were described as frosted and graphite-inclusion riddled. In 1995, prospector Sandor Surmacz and geologist Marcelle Hauseux discovered diamonds in bedrock approximately 20 km north of the Michipicoten River. An 18.1-kg bulk sample of a xenolith-rich lamprophyre, taken from an outcrop at the side of the Trans Canada Highway north of Wawa, yielded 1 macro diamond and 5 micro diamonds. All but one was gem quality (Sage 2000). Since then, more than 36 occurrences of diamonds in bedrock have been reported in an approximately 30 km2 area centred 20 km north of the town of Wawa. The occurrences are hosted within a sequence of unusual, Archean-aged, heterolithic breccias previously considered to have no economic significance. Ten kimberlite occurrences also have been confirmed in the Michipicoten greenstone belt in the last 5 years. Two of these kimberlites are diamondiferous. To date, expenditures on property acquisition and diamond exploration in the Wawa are estimated at $120 million (CAN). This paper summarizes the geological observations made on these occurrences and discusses including the relationship between the occurrences and the regional geology.

May 1, 2003

By Brian Hall

For some years, the mining industry has been consistently delivering returns below the market average. One of the causes is a disconnect between what is perceived to drive value creation by many industry analysts and senior corporate executives, and what actually drives the intrinsic value of mining operations. The perverse effect is that strategies that should increase value are perceived to have the potential to drive share prices down, and vice versa. This paper challenges common perceptions of what drives a mining company?s value. Anecdotal evidence suggests that the key drivers of value in the market, and hence in many boardrooms, are such things as increasing the reserves and production rate, and reducing unit operating cost. However, while the quoted reserves may satisfy ore reserves reporting code requirements to be economic, this does not imply that they are optimal. Often, a proportion of the quoted reserve reduces the potential value of the operation. Metal price increases, increased production rates, and operating cost reductions are all seen as conditions or actions that can improve value, and lead to cutoff grade reductions, thereby increasing ore reserves. However, modern cutoff theory and studies conducted by the author and his colleagues show clearly that, while breakeven cutoff grades will fall in these circumstances, optimum cutoffs may be much less volatile, and may even increase. Results from case studies indicate that value is maximised by right-sizing, not maximising, the production capacities, and by optimising the cutoff strategy. Values of many existing underground mining operations can be increased significantly by a substantial cutoff grade increase. Also, an increase in downside risk, and hence reduced returns, can occur using typical life-of-mine planning strategies if prices received are lower than predicted. Since this is often the case, low industry returns may be a direct result of typical strategic mine planning processes. Relatively simple cost-effective techniques are available to provide senior decision makers with information needed to assess the tradeoffs between their many conflicting corporate goals, and the balance between risk and reward. Often this information is not being generated at all. If it is, decisions affecting the value of the company are occurring by default at relatively low levels within the hierarchy, with senior executives apparently unaware of them or their potential impact. The paper concludes that without a re-evaluation of the way mining projects are valued, to demand proven value optimisation from mining plans by boards and mining analysts, the industry will continue to deliver below average returns.

May 1, 2003

By Jean Fortin

In order to remain competitive, the search for excellence has been and will remain the only viable option facing the Mount-Wright operations. Safety and environment, process and technology as well as cost performance have been the focus points on which the operations have concentrated their efforts in order to meet and exceed our company's "Vision 2000" plan. Some of our mine's accomplishments have been a new work organization, a world class maintenance and a new collective agreement. The concentrator, maintenance and production departments have evaluated their processes and implemented various improvements in areas such as power supply, dewatering, blasting, implementation of service centers for large and small vehicles, fleet standardization, crusher, mills and silos improvements... etc. Safety and work environment for personnel have been our driving force in order to achieve this plan.

May 1, 2003

By Ron Doucet

Industry today is now more than ever dependent on its assets and on the standard of maintenance. Changes in technology, environmental regulations, a continually improving focus on safety and global competitiveness has made maintenance a key activity in sustaining safe, financially viable and environmentally integral operations. Maintenance used to be looked upon as a cost centre with a sole focus of fixing equipment to attain high availability. Maintenance today affects all aspects of the business: safety, environmental integrity, energy efficiency, productivity, costs, and product quality. These new demands on the function of maintenance requires us to think vastly differently about what maintenance is all about, even to the point of contradicting old beliefs. In the following paragraphs we will examine some of the changed thinking that has evolved over the last 50 years. These new concepts will lay the foundation for the implementation of 21st century best practice maintenance.

May 1, 2003

By Lorant B. Geller

Sixteen miners died tragically at the Paymaster gold mine at Timmins, Ontario in February, 1945, when a badly corroded hoist rope broke. The investigation of the Royal Commission that followed arrived at a number of recommendations (Investigations, 1947) aimed at avoiding future disasters of this kind. One consequence was the development, and legislated use in Canada, several decades ago, of powerful electromagnetic (EM) instruments for the nondestructive testing of mine shaft wire ropes. The authors have been involved for many years in the design, production, and testing of EM instruments (Geller and Udd, 1990 and 1992, Geller and Kitzinger, 1991, Geller et al., 1993). Since the mid-1990s particular attention was paid to the design and operational results obtained from the computer- controlled portable MagnographJ II wire rope tester (Geller et al., 1995 and 1998). In the present article the authors summarize further hardware- and software-related developments of this instrument. Further, an account is given of the results obtained from the most recent design known as the PermaScanJ testing system. This is also a computerized dual-function system. In it, however, the sensor head is designed primarily, if not solely, for permanent installation and for remotely controlled operation. This represents a basic departure from traditional designs, which were intended for ad hoc temporary installations. The remotecontrolled instrument described in this paper has now been in operational use for more than 4 years.

May 1, 2003

By James F. Archibald

A research effort has been undertaken, under WSIB sponsorship, to characterize the support capabilities of conventional and innovative spray-on lining materials for mitigating dynamic failure effects created by simulated rockbursts. Conventional spray support media, such as shotcrete and fibrecrete linings, and a variety of new spray-on lining materials (TSL?s), typically polymer-type thin coatings, were subjected to simulated rockburst influence. For baseline comparison, conventional rockbolt and boltand- mesh support products were also evaluated. Observation of lining performance was undertaken through completion of field scale support and rock detonation trials. Controlled blasting tests were conducted at the Queen?s University Explosives Laboratory to examine the effectiveness of the variety of surface coating agents for modifying dynamic rock spalling processes. All tests were performed upon largely undisturbed and homogeneous rock materials in highly repeatable fashion. Both conventional and innovative TSL-type surface lining materials were subjected to ?rockburst? exposure in rigorously-controlled blast trials. All blasts were observed seismically and photographically to provide detailed information concerning rock motion, surface fracturing, ejected fragment motion and support liner survivability characteristics. These material comparison trials were performed to assess the relative effectiveness of a wide range of currently-available area support techniques for suppressing hazards associated with dynamic rock ejection. The results of this study validates that thin, sprayon linings may be equally as effective, and often better, than conventional support materials at mitigating rockburst or like damage in highly stressed mine environments.

May 1, 2003