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By Michel Ruel

"PID loops – also known as base layers or regulatory controls – form the foundation of any plant’s control layer and it is generally accepted that PID loop health has a direct impact on the plant’s bottom line. Keeping these thousands of control loops in good health has a direct impact on the plant’s bottom line: it reduces variability, improves quality and throughput, and decreases energy costs and raw material usage. This has been well proven and documented in many articles. In the last ten years, technology has evolved: control engineers can now keep track of control loop performance and link it to the root causes of variability. However, they lack industry-wide best practices and criteria for determining what can be considered as excellent, good, fair, or poor performance. To ensure that PID control loops continue to perform well and meet their objectives, control engineers need a combination of (a) an appropriate monitoring technology and (b) best practices for doing the maintenance of base layer controls.Most plants have limited resources and operate with an increasing number of constraints; therefore, using the right tools and including reports in daily workflow is key for success. This paper suggests roles and responsibilities of key players needed to work toward control performance best practices and discuss organisational changes to succeed.INTRODUCTIONAlthough PID controllers are reliable workhorses in the process industry, they are often underrated. Since the 1980’s, computer control has evolved and the control algorithms used by control engineers have become increasingly complex. However, PID controllers still handle over 90% of the control loops in operating plants. Table 1 shows the savings that can be realized by achieving best-practice in several different process control categories (Brisk, 2004). The savings are expressed as a percentage of production costs."

Jan 1, 2011

By Pravin Kumar

Goldcorp Inc.?s Red Lake Mine (RLM) is situated in the Red Lake Mining District, a history rich North Western Ontario mining community. Red Lake Mine formerly known as the Dickenson Mine has experienced various degree and type of bursting since the 1960?s. During the 1960?s burst were common in shrinkage stope box hole pillars. After discovering the High Grade Zone (HGZ) between its 30th and 39th levels, the mine has changed its mining method to mechanized cut and fill with cemented paste fill. The rock mass at RLM is mainly massive basalt-ultramafic and behaves in a manner consistent with massive brittle rock. This paper presents the use of empirical and numerical design techniques. The use of the Span versus RMR graph to determine critical stope spans at RLM and the use of numerical design techniques to determine the stability of the sills and post pillars. Selecting of a sill pillar dimension is illustrated using four different failure criteria?s. The four failure criteria are m & s failure criteria, the Pillar Stability Graph, deviatoric stress ???-?3), and induced stress level criteria ?1 /UCS, which are calibrated to RLM?s ground conditions. A wide range of case histories has been studied ranging from stable to highly burst prone ground conditions in order to calibrate the failure criteria to observed conditions and quantified to local micro seismic system.

May 1, 2002

By Peter Mitschke, Friedrich Rosenstock, Heinrich Meiler

"The development of the Centrifugal Mill jointly by Chamber of Mines (Johannesburg) and LURGI GMBH (Frankfurt) had been described by L. Kitschen e.al. during the 14th IMPC at Toronto in October 1982. Further investigations, using a 55 kW semi-industrial mill, installed at LURGI's Research Laboratories, were concentrated on efficiency and wear in grinding.The test results showed, that efficiency increases when increasing the ball load between 60 and 80 % by volume. Furthermore, the efficiency is increased by speeding up the mill, thus increasing the centrifugal force to up to 14 times the force of gravity. Applying these findings to grinding of a Canadian iron ore spiral concentrate, a saving in grinding power of 30 % was experienced, when comparing with ordinary wet ball milling.Investigations of several shapes of the grinding chamber cross section and linings and several types of materials showed, that no increase of liner or ball wear will occur compared to conventional ball mills when choosing suitable lining patterns. 1. DEVELOPMENT OF THE CENTRIPUGAL MILLThe centrifugal mill was developed with the aim of finding a grinding unit that can operate at a higher power concentration than the conventional tumbling mills.LURGI felt the necessity for such a mill in connection with a hydrometallurgical process developed at the beginning of the seventies, which incorporated an activating grinding step as one of the essential process features. At that time, the Chamber of Mines in Johannesburg was investigating possibilities of underground wet grinding and preconcentration of gold ores aiming at a decrease of mining costs by reducing the quantities, especially for mines operating at depths up to 3600 m, by changing over from rope hoisting to hydraulic transportation systems. After the Chamber of Mines had initiated the development work on its own, in 1974 a cooperation between the two organisations was started."

Jan 1, 1985

By Maryam Sadeghi, Jonathan Roy, Claude Bazin

"The operation of mineral processing equipments is intimately related to the mineral composition of the ore. However unit performances are usually characterized in terms of metal contents or recoveries as this data is easier to obtain than the mineral contents. This paper describes a method that combines the operations of material balancing and estimation of the mineral contents of the ore. The estimated mineral contents can be used for process analysis and diagnosis of operating problems.IntroductionThe ore that is feeding a concentrator is made of minerals that condition the energy requirements for the ore comminution and the performances of the subsequent separation circuit. Indeed a change in the mineral composition of the ore may lead to lower grinding mill throughput as well as lower recovery or grade of the economical products. Despite this relationship is recognized the mineral composition of the ore is seldom measured or estimated to provide regular information for the diagnosis of operating problems. Some methods such as the QEM-SCAN (Whiten, 2008; Lamberg and Vianna, 2006) are available to measure the concentration of the minerals in ore samples but the method is time demanding and plant operators usually base their evaluation of the plant performances on chemical assays of metals or elements since this data is easier to obtain from ore samples.Usually samples of the streams of mineral processing plants are collected on a daily basis to be assayed for strategic elements. The obtained concentrations are balanced to produce coherent data with the material conservation constraint and then used to characterize the day to day operation of the plant in terms of recovery of valuable metals and grades of the marketable concentrates. The behavior of contaminant elements can also be monitored from this data allowing the operators to explain for instance a lower zinc concentrate grade by a more important contamination of iron. However such diagnosis is only partial as the contaminant element can be transported by different minerals. Indeed the iron contamination of a zinc sulfide concentrate may be caused by an inadequate depression of pyrite or due to another iron carrying mineral. A possible way to answer the question is to determine the concentrations of the various minerals in the ore and produced sealable concentrates. Since measuring the mineral contents of the ore could be a demanding task one should consider to estimate this data from the daily chemical assays of the sample collected on the main streams of the circuit. Some authors have already investigated the problem. Whiten(2008) described a method to estimate the mineral contents of an ore sample. Lamberg and Vianna(2006) proposed a method to do a sequential mineral reconstruction followed by a material balance. Few of these methods account for the mass conservation of the reconstructed mineral contents."

Jan 1, 2016

By Andrea M. Ouchi

A major focus of ground control research presently being conducted by the Geomechanics Group in the University of British Columbia Mining Engineering Department is to incorporate weak rock masses (RMR76 less than 50) into existing empirical design relationships. An emphasis is being placed upon the updated span design curve/critical span graph originally developed at UBC. The original database has been augmented by mapping of one mine in Montana and of several mines within the Carlin and Getchell Trends of Nevada. In addition, a neural network analysis has been performed and modifications of the span design curves at the lower RMR76 range have been made. The common factor in all the above mentioned mines is a weak back and/or walls. In most cases, the ore zone is the weakest rock unit and must be dealt with to safely extract the mineral bearing rock. This work attempts to provide rock mechanic tools that will enable a mine operator to make economic decisions that will also ensure a safe working environment.

May 1, 2004

By E. Uzun

"In this study, H2SO4 and HCl leaching behaviour of an ore sample containing 1.87% of Ni, obtained from the Karaçam (Eskisehir-Turkey) lateritic deposit that started operation recently was investigated. Acid concentration, temperature and reaction time were investigated as variables by comparative leaching tests and the optimum leaching conditions were selected on teh basis of Ni, Fe, Co and Mg behaviour. For H2SO4 leaching, optimum leach parameters were 95°C, a 12 normal H2SO4 concentration and 90 minutes of reaction time, and under these conditions Ni and Fe dissolutions were 97.6% and 95.4% respectively. On the other hand, 70°C, an 8 normal HCl concentration and a reaction time of 90 minutes were found to be the optimum parameters for HCl leaching, and Ni and Fe dissolutions found were 97.1% and 97.8%, respectively.INTRODUCTION Today, nickel and various nickel compounds are obtained from sulphide and lateritic nickel ores (Moskalyk & Alfantazi, 2002). Even though about 72% of the world's nickel reserves constitute lateritic ores, only about 42% of nickel is produced from these ores. The decrease in production from sulphide deposits, on the other hand, and increases in the use of nickel in the iron and steel, and battery production sectors, and especially the production of nickel cast irons in recent years, have accelerated the importance of making use of lateritic deposits (Luo et. al., 2010; Chang et. al., 2010). In the beneficiation of sulphide nickel ores, mostly pyrometallurgical methods are used. On the other hand, about 39% of lateritic ores are beneficiated by pyrometallurgical, and 61% are beneficiated by hydrometallurgical methods (USGS, 2009). In laterite beneficiation, the ore properties are of significance; that is to say, limonitic ores are eneficiated by high pressure acid leaching or via the Caron process, nontronitic ores are beneficiated by high pressure acid leaching or heat treatment (smelting), and ores containing serpentine by pyrometallurgical methods (Berezowsky, 2004; McDonald & Whittington, 2008a; Dreisinger et. al., 2015)."

Jan 1, 2017

By Thomas Deschamps

The main objective of this work was to investigate the effect of binder addition on the geochemical properties of surface paste tailings. Nine leaching columns were prepared following different disposal configurations: non-cemented, non-cemented with cemented layers, and cemented .The proportions of cement by total paste weight were between 0 and 1% for a whole column; the maximum amount of cement in a single layer was 2%. The material used was a sulphide-rich tailings coming from a Canadian hard rock polymetallic mine. The columns have been flushed once a week during 30 weeks. The recovered leachates were analyzed for pH, Eh, conductivity, and a wide range of elements. The drainage rates were monitored during the initial disposal as well as after each column flush. The results show that binder addition can improve the whole environmental performances for some of the studied disposal configurations. The disposal configuration consisting of intercalation of three 2% cement paste layers within non-cemented layers (0.66 wt.% of cement for the whole column), and the configuration with 2% cement added only in the two bottom layers (0,44 wt.% of cement for the whole column), showed the best results in terms of water quality and drainage rates.

May 1, 2007

By R. Rosenblum, J. Y. Kim, D. Shink, K. G. Stowe

"A small scale continuous flotation cell was designed and constructed at the Noranda Technology Centre to develop a mobile testing flotation circuit located next to the production circuit. This mobile small scale flotation pilot plant can easily and economically be set up at any circuit in a mill and used to evaluate and predict plant performance against a given flotation condition. The main feature of the cell, beside the provisions of automatic pulp level and feed rate control, is to provide a reduced surface to volume ratio approaching to that of an industrial machine.This paper describes the basic design and the results of various testwork carried out to date including aeration, conditioning, reagents, recirculation, flotation gas, etc. are presented in comparison with the plant production results. INTRODUCTIONStudy of the behaviour of an ore during concentration by flotation process starts, in general, with a series of tests in laboratory cells. Given the discontinuous nature of these tests, the information obtained by such a study is somewhat limited. It has long been recognized that laboratory test results are not always reproducible in pilot plant tests and subsequently, the pilot plant results do not always predict plant performance. The differences are often blamed on batch vs continuous operations, grinding media, size distribution, aging (oxidation), water quality, equipment, operator's skills, etc."

Jan 1, 1992

By T. Schmidt, J. Merza

"This study considers two lead/zinc/silver orebodies which have historically had a problem with pyrite, pyrrhotite and sphalerite contamination in the lead circuit. The problem was previously addressed with high dosages of sodium cyanide as the primary depressant. However, large amounts of cyanide led to environmental problems in the effluent, especially during winter months. The objective was to reduce cyanide consumption while maintaining or improving overall lead grade and recovery via the reduction of the undesirable sulphides.Extensive laboratory and mill testing was necessary to determine the optimal operating parameters for continuous plant application. Evaluation of data received from this testing has shown that selective addition and optimization of the dosage of Unimax SD100 to specific areas of the flotation and grinding circuits has resulted in improved Pb grade and recovery. Parameters such as pH control, regrind operation, the cyanide/Unimax ratio and sulphide mineral content may also affect the performance of the depressant. Each factor is discussed and optimal operating conditions were determined based on the testing.Results are presented for two case studies. Both indicate that Unimax SD100 improves the lead grade/recovery curve by increasing iron and zinc rejection while reducing cyanide consumption and the resulting environmental concerns. 1. Hart"

Jan 1, 1992

By J. Sammut, T. G. Joseph, R. Andreev, M. Curley

"Decisions regarding mining method and subsequent choice of excavator must take into account the quantitative factors of productivity, availability, and capital, operating, and maintenance costs. Dig performance was compared between a hydraulic excavator (HE) and electric rope shovel (RS) of similar size class (i.e., use the same amount of energy to excavate a unit quantity of the same material from a mining face), focusing on the quantitative factors above. Machine performance, normalized to bucket capacity, was assessed as a function of hours of service (60,000 hours per machine). Results showed higher production rates for the HE of similar capacity and age. In general, the RS exhibited lower service cost per volume capacity, though it had higher capital cost. The RS became more cost effective than the HE of similar capacity within approximately 30,000 hours of service. ¦ KEYWORDS Cost, Electric rope shovel (RS), Excavation, Hydraulic excavator (HE), Surface mining RÉSUMÉ Les décisions concernant la méthode minière à adopter et le choix ultérieur d’un engin d’ex¬cavation doivent tenir compte des facteurs quantitatifs de la productivité, de la disponibilité ainsi que des coûts d’investissement, d’exploitation et d’entretien. Cette étude compare les performances en termes d’excavation d’une excavatrice hydraulique et d’une pelle électrique à câbles de même taille (qui utili¬sent par exemple la même quantité d’énergie pour creuser une quantité unitaire du même matériau dans un front de taille), en se concentrant sur les facteurs quantitatifs susmentionnés. La performance de la machine, normalisée à la contenance du godet de volume unitaire, est évaluée en fonction des heures de service (60 000 heures d’activité par machine). Les résultats montrent des taux de production plus élevés pour l’excavatrice hydraulique d’une capacité et d’une ancienneté similaires. De manière générale, la pelle électrique à câbles affiche un coût d’entretien par capacité volumique inférieur, mais son coût d’in¬vestissement est plus élevé. La pelle électrique à câbles devient plus rentable que l’excavatrice hydrau¬lique d’une même capacité au bout d’environ 30 000 heures de fonctionnement. ¦ MOTS CLÉS coût, excavation, excavatrice hydraulique, exploitation à ciel ouvert, pelle électrique à cablesINTRODUCTION The most common excavating tools in surface mining operations are the hydraulic excavator (HE) and electric rope shovel (RS). In general, electric RSs are more reliable and cheaper to maintain (P&H Mining Equipment, 2007), but where complicated geological conditions exist, HEs are preferred because they are generally considered to be more mobile."

Jan 1, 2019

By W. Greg Maybee

Separations, which form along stratigraphic boundaries in the roofs of potash mines, pose a serious safety concern. If these separations go undetected they can lead to falls of ground. The current method of identifying the location and extent of these separations is through manual scaling (sounding) using an aluminium rod. The potash mining companies would like to have a tool, which could quickly and reliably detect these separations and distinguish between them and clay seams. This paper presents the results of field trials undertaken at various potash mines in Saskatchewan belonging to the member companies of the Saskatchewan Potash Producers Association. A ground penetrating radar instrument from RST called SUSI (stepped frequency, ultra-wideband, synthetic aperture radar instrument) was used. SUSI has the ability of working over various frequency bandwidths. Four mines were chosen for these field trials, covering the different geological characteristics encountered in the Saskatchewan potash mines: Potash Corporation of Saskatchewan?s (PCS) Allan and Lanigan Divisions, Agrium?s Vanscoy Potash Operations and IMC Potash?s K2 Mine. These field trials indicated that stepped frequency ground penetrating radar technology could be ?tuned? to identify both separations and clay stratigraphy in the softrock, potash mine environment, based on the different spectral responses of the features.

May 1, 2004

By Serge Ouellet

Identification and quantification of cementitious phases in cemented paste backfill (CPB) is difficult due to the fineness of tailings and the low binder content used in the mixture. Techniques such as X-ray diffraction and thermogravimetry were ineffective (mainly due to tailing mineral interference) to identify and quantify hydration products in most works reported in the literature. On the other hand, scanning electron microscopy (SEM) was used in many cases but mainly for qualitative purposes. This paper presents the development of a new approach based on a computer program (SEM-XMAP) that combines X-ray dot mapping images acquired by SEM and generates a coloured image representing the mineralogy and the microstructure of a given CPB specimen. The technique is applied to one CPB sample mixed with blast furnace slag (BFS) and acidic sulphated mixing water sampled in a mine dewatering system. The technique allowed identifying calcic matrix, unhydrated and partially hydrated BFS particles, and sulphated phases.

May 1, 2007

By P. L. Richard

An open pit a mine can be thought of as a business unit, with capital, operating and maintenance costs that exceed those of many large business enterprises. Truck-and-shovel operations have an inherent ?looseness? to them, unlike manufacturing or processing operations where production components are tightly coupled (through conveyors, material flow in pipes, assembly lines, and so on). Effective monitoring and control of truck-and-shovel operations requires a combination of both information systems and performance management. Production monitoring systems can impact operations at three levels: minute-by-minute decisions during the shift, procedures, and policies. The technology of production monitoring ranges from real-time data collection to manual entry of time card data into a computer. Time card information is too coarse to effectively manage a multi-million dollar fleet of mobile equipment, so a higher level of production monitoring is required. People issues affect whether the implementation will be a success or a disappointment. Considerations that affect the people issues are discussed, including common obstacles, and key success factors. A balanced scorecard approach must be used, since uni-dimensional measures of performance like tons produced give no indication of whether the production was achieved at the expense of another factor.

May 1, 2004

By P. L. Richard

An open pit a mine can be thought of as a business unit, with capital, operating and maintenance costs that exceed those of many large business enterprises. Truck-and-shovel operations have an inherent “looseness” to them, unlike manufacturing or processing operations where production components are tightly coupled (through conveyors, material flow in pipes, assembly lines, and so on). Effective monitoring and control of truck-and-shovel operations requires a combination of both information systems and performance management. Production monitoring systems can impact operations at three levels: minute-byminute decisions during the shift, procedures, and policies. The technology of production monitoring ranges from real-time data collection to manual entry of time card data into a computer. Time card information is too coarse to effectively manage a multi-million dollar fleet of mobile equipment, so a higher level of production monitoring is required. People issues affect whether the implementation will be a success or a disappointment. Considerations that affect the people issues are discussed, including common obstacles, and key success factors. A balanced scorecard approach must be used, since uni-dimensional measures of performance like tons produced give no indication of whether the production was achieved at the expense of another factor.

Jan 1, 2004

By Don Thompson

Canada’s oil sands are a controversial topic and virtually every newsmaker and layperson seems to have an opinion about this 179 billion barrel resource. The oil sands represent 97 per cent of Canada’s remaining oil reserves, but misinterpretation and misrepresentation of the facts are threatening development of a resource that generates significant employment and tax revenue for Canadians. Join Don Thompson, president of the Oil Sands Developers Group, as he dispels the top ten myths about Canada’s oil sands and presents an alternative perspective on an industry that can play a critical role in North America’s economic recovery.

Jan 1, 2010

By Will Callupe Arzapalo

The success of the minimization of blast induced-damage at Barrick?s Pierina Mine in Peru is the result of an effective working relationship between Mine Operations and the Geotechnical Services Department. A detailed design criteria manual is used to match the blast plan to the site?s varying rock types and slope designs. The Geotechnical Services Department has further developed a comprehensive pre- and post-blast checklist that is critical to the drilling and blasting process as it pertains to wall stability. Wall control blasts are evaluated with quality assurance field checks, vibration monitoring and frequency control, video assisted performance quantification and post excavation face profiling. These detailed observations are compiled and summarized in a blast performance evaluation that is considered to be an ?Industry Best Practice?. The information and detail provided by each performance summary allows accurate blast analysis and effective design refinement.

May 1, 2006

By Norman A. Jull

"IntroductionThe scope of this paper is intended to deal mainly with cyclones in grinding circuits. However, the section on Cyclone Equipment, contains more general descriptions, to cover most of the cyclones used in mineral separation plants.Cyclones as heavy media separation vessels are discussed by Mark Freberg (this volume). Their use in tailings deslirning is discussed by P.C. Lighthall, eta/. (this volume).Cyclone EquipmentCyclone TerminologyApexObviously, the apex of a cone is the smallest end. However, with cyclones the term is usually used for the fitting which is attached there to control discharge of the underflow stream.Note that the cyclone need not be so mounted that the apex is the lowest point, although that is the most common method. Keeping the apex below the rest of the cyclone helps avoid plugging when the underflow contains very large particles and the tonnage of underflow solids can fluctuate.Various devices for adjusting apex diameter or otherwise controlling the underflow are discussed later under ""Cyclone Construction"".BypassingThe transport of a portion of feed slurry directly to underflow so that classification is bypassed by that portion of feed.This action is fundamental in any hydraulic classification, whether gravity or centrifugal, because the large particles going to underflow have some void volume between them, which remains filled with feed slurry.D50By definition, D50 is that particle size which has an equal probability of going to overflow or to underflow.It is calculated by drawing a curve of recovery vs particle size and noting the size at which 500Jo recovery occurs.This may be done equally with corrected or with gross recovery (see below) and the resulting value should therefore be identified as d50c (corrected d50) or as d500 (gross d50).Note also that it is common in industry practice to plot size analysis data on the retained size rather than on the average of passing and retained (the middle of the size band). To portray sizing alone it makes no difference, but to read a D50 value off a curve of corrected or gross recoveries, it is essential to plot those values on the average size of each band."

Jan 1, 1989

By C. B. Webber, W. A. Grell

"Sherritt Gordon's Ruttan Mine is a copper-zinc operation located approximately 600 miles north-west of Winnipeg. Open pit mining began in 1973 at 10,000 Tpd., with a change over to underground mining in 1981 producing 7,500 Tpd. Ore is crushed to -3/4"" followed by rod and ball mill grinding (two ball mills in series), differential copper-zinc flotation, and dewatering. The copper and zinc concentrates are trucked 75 miles to Lynn Lake, where they are shipped by rail to the HBM&S smelter at Flin Flon.This paper describes a method used to predict the effect of grind particle size on metallurgical performance, as well as details on the copper and zinc metallurgical performance due to fine grinding in actual plant operation.Initial statistical studies on historical data (including ore source, head gr3de, grind, etc.) indicated that copper and zinc recoveries increased with fineness of grind, in the range of 50 to 65% -200 mesh.In order to extrapolate beyond 65% -200 mesh, and to develop expected nonlinear relations between grind, Cu concentrate grade, and recovery, the assays of screen fractions of copper concentrate and tailing were used to determin8 the relation between net smelter return (a function of grade and recovery) and grinding cost. The optimum economic grind would be that grind at which the net smelter return less grinding cost reached a maximum."

Jan 1, 1982

By Thomas R. Larson

"Many concentrators use re-circulating “plant” water for dilution in their flotation circuits. However, if crusher dust suppressants, ball mill grinding aids, or even agitator bearing grease are introduced into this water, and the water itself is not subject to cleaning steps, then sufficient quantities of these chemicals may appear in the flotation cells and begin to impact the flotation separation. A bench flotation procedure has been coupled with statistical analysis in order to estimate the impact of small quantities of non-flotation chemicals on flotation performance.INTRODUCTIONCleveland Cliffs produces iron oxide pellets for blast furnace feed, and is developing the capability to produce ferrous metallic products to supply a wider customer base. Cliffs manages five North American iron mines, including the Wabush mine sites in Labrador and Quebec. Based on various characteristics of the ore bodies, the flow sheets of the five mines are diverse. For example, Hibbing Taconite uses magnetic separation alone as their primary upgrading method, but Northshore and Empire use magnetic separation followed by flotation, and Tilden uses flotation alone. Last but not least, the Wabush concentrator upgrades primarily with gravity and electrostatic separation techniques.At Northshore, concentrate from the magnetic separator circuit is fed to a reverse flotation circuit. By design, the magnetic separators operate at the highest possible recovery of magnetite, as the separator tails are discarded, and relatively high silica content was acceptable to Northshore’s customers. As the steel-making industry moved toward lower and lower slag volumes, the silica content in the magnetic separator concentrate became a problem. The flotation step was added in the late 1980s in order to decrease the silica assay of the magnetic separator concentrate to meet the current customer requirements. In this setting, the flotation feed stream contains very little silica that occurs as liberated quartz particles. As the degree of liberation of the flotation feed stream is then a limiting factor for silica removal, the online grind control then was linked to flotation in the overall plant control system so that grind can be adjusted to achieve improved liberation if necessary for the flotation process."

Jan 1, 2002

By H. R. Bullis

"Abstract- This paper discusses what appears to be a flaw in the current belief, widely held within the gold mining industry and investment community, that the creation of ever-larger gold mining companies is desirable for mining companies and investors alike. The basis of the flaw is in the underlying assumption that very large gold producers can discover or acquire new gold deposits of the size necessary to replace extracted reserves on a year-on-year basis over the intermediate to long term (i.e., five to ten years and longer). As it will be noted in this paper, deposits of the size required to replace annual production of very large gold producers (VLGPs) are relatively few in number. Although discoveries of new gold deposits continue to be made, they are predominantly in the 0.5 to 2.0 million ounce range. Data represented here suggest that, although gold production from individual VLGPs continues to increase, the change is due to merging or acquiring other companies or projects with similar reserve life profiles. Therefore, the reserve life profiles of VLGPs have remained flat or have decreased.The paper will note recent changes in the industry and the remarkable increase in gold production reported by individual mining companies over the past several years. It will provide an overview of the geographical and geological distribution of known gold deposits and the range of deposit sizes. Finally, the paper will discuss the challenges that face large gold producers in replenishing their reserves that are being depleted at an ever-increasing rate. Unless otherwise stated, all production and reserve data have been taken from company documents in the public domain or publicly available information."

Jan 1, 2001