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By John T. Crawford

Open pit limit analysis techniques of various types have been utilized for many years to design ultimate pit surfaces. In the last 15 years there have been many advances in the development of sophisticated computer methods to aid this process. The extensive capability of the computer has led to multiple alternative approaches to problem solving. Computerized open pit limit analysis methods can be applied to a broad scope of long-range and intermediate-range mine planning and design questions. A single computer run develops a pit design from a set of data. A set of nonsequential runs is used to evaluate changes in pit slopes, property restraints, and mineral model variables. Ore reserve economic sensitivity and intermediate-range mining plans can be developed using sequential computer runs. Present value methods are incorporated by using iterative sequential techniques. Multiple ore processes, dump leaching credits, and the trade-off between open pit and underground mining can also be handled. Many of the applications described are representative of current practice. The remainder are suggested extensions.

Jan 1, 1979

By Michael Brittan

Diagnostic regression analysis has been used as a tool to improve the recovery efficiencies of numerous gold mills, yielding significant revenue increases. In the course of the analyses it has generally been found that ore head grade is a statistically dominant variable affecting the overall gold recovery. Higher grades invariably generate higher recoveries. Examples are given from several operations in the world's two largest gold producing countries, South Africa and the United States. The plants considered cover the treatment of both oxide and refractory ores. A simple generalized model is presented relating tails to head grade. Since ore grade variations are beyond operational control, operators should not be held accountable for decreases in recovery caused by lower head grades. Conversely, the ore must take credit for many a recovery increase. Rigorous metallurgical test work, feasibility analysis, production planning and budgeting should allow for recovery variations due to grade fluctuations. Since the phenomenon is a reflection of ore geology and mineralogy, which are ore specific, comparison of recoveries at different times or sites is not meaningful without a detailed understanding of the mineralogical constraints on gold liberation.

Jan 1, 1997

By Willard C. Lacy

Discovery of a mine is a complex affair. No mine is simply found but comes about through the efforts of many. It is difficult to establish "credit" when a mine is found and becomes a viable operation, or "guilt" when a mine is lost, goes bankrupt, or remains undeveloped. The story of the Toquepala and Cuajone developments entails various stages of: (1) discovery and recognition; (2) testing and innovation; (3) political and industrial negotiation and intrigue; and (4) finance, development, and operation. The Toquepala and Cuajone projects introduced innovative drilling techniques, were among the first major porphyry copper deposits to utilize induced polarization (1P)geophysical methods, were among the first deposits to undertake complete feasibility studies on drilled- out ore bodies, and were developed by the first large Western Hemisphere copper mining consortium. Many persons have contributed to the development of these two great deposits. Some of the names have been lost and certain contributions have gone unrecognized. I apologize for these omissions.

Jan 1, 1991

By Glenn L. Krum

Inflation has received much attention due to its effect on capital budgeting, associated cost overruns, and declining real profits. This study focuses on the effects of inflation on the evaluation of a mining investment and the estimation of a mining project's revenues. The study indicates that the best method for estimating future returns is the fore- cast dollar scheme. In this scheme, the metal price was held constant, and the operating costs were "inflated" along a historical regression line. The conclusion was reached by comparing the "actual" performance of a 3000 tpd (tonnes per day) lead mine model with 'its estimated performance during four time periods (1950-1960, 1955-1965, 1960-1970, 1965-1975). The individual data files for each time period and estimating method (6 files by 4 time periods) were pro- cessed by a suite of cash flow computational and investment analysis sub- routines. The analysis presumed that the mine was part of a large corporation which could utilize the expensed, development and exploration costs and any investment tax credits, in the year that they were incurred.

Jan 1, 1979

By L. M. English, Y. J. Wang

When plotted as head vs. volume, fan curves start high and decrease with increasing volume, while mine head curves start low and rise with increasing volume. Their intersection is the system operating point. However, as every ventilation instructor knows, the fact that head loss is a negative number (debit) and fan head is an energy addition (credit) is often a stumbling block to student or audience comprehension since the curves seem to reflect the opposite. It is possible to use the intuitively correct curves- pressure losses as negative values and energy additions as positive values - and still obtain the correct operating point. Adding the two curves produces a third curve that intersects the x-axis at the operating point, the point at which the fan energy input exactly matches air circulation energy loss. Using this technique also makes it easier to account for outside influences on the system, such as natural ventilating pressure. With the standard approach, it is quite easy to add or subtract such influences to the wrong curve. This approach can be extended to the graphical solution of any series/parallel ventilation network. The results are the same, and the approach is logically consistent and less confusing.

Jan 1, 1999

By David D. Spencer

As in many other areas of the Mexican economy, the legal rules applicable to mining in Mexico have been changing fast. Mexico's mining sector is opening up to levels of international participation that were unforeseeable just a few years ago. Over the last several years, Mexico has made dramatic changes in its trade and investment policies. Many of these changes have their roots in the administrations of Miguel de la Madrid and perhaps even Jose Lopez Portillo. However, the current administration of President Carlos Salinas must be given credit for articulating, advancing, promulgating and implementing these changes. Just a few short years ago, few people believed Mexico would repeal so many of its restrictions on foreign investment and lower its average tariff level from something around 100% to less than 10%, where it is today. NAFTA and mining The North American Free Trade Agreement (NAFTA) is the most comprehensive international expression of Mexico's new policies. Except perhaps for the agreements establishing the European Union, NAFTA is the most detailed trade agreement ever written, consisting of about 2000 pages. The provisions of NAFTA with the greatest relevance to the mining industry include the chapters on investment and government procurement. Many mining companies may also find the temporary work provisions relevant. Finally, no discussion of NAFTA and the mining industry would be complete without some mention of the North American Agreement on Environmental Cooperation, the so-called Environmental Side Agreement.

Jan 1, 1994

By George Hope, Edward H. Smith

In late 1989, LAC Minerals purchased 65% of Bond International Gold and as a result became controlling shareholder of the El Indio Mine through Bond and San Jose. El Indio is a world class, complex sulphide gold deposit located in the hydrothermal alteration belt of the Andes mountains in the 4th Region of Chile. The mine is located in the high Andes about 185 km east of La Serena at an elevation of 4000 meters. The 1450 workers at El Indio live in the mine camp at 3200 m and on days off are bussed to La Serena. The El Indio mine was started in 1979 by St. Joe Minerals Corp., bought by Bond in 1987 and subsequently by LAC in 1989. The mine has produced 2.7 million oz. of gold, 9. 5 million oz. of silver and 170,000 t of copper since start of operation. The mill is currently operating at a rate of 2850 t/d and producing a copper/gold concentrate which is roasted to produce a copper/gold calcine and high quality, saleable crude As203• A small proportion of the precious metals are also produced as bullion from the leach circuit. Total production during 1989 was 224,197 ounces of gold, 1,309,342 ounces of silver and 26,968 tonnes of copper. The average cash cost of production for the period was U.S. $96 per ounce of gold, net of by-product credits. The average realized price was $5.30 per ounce of silver and $1.14 per pound of copper.

Jan 1, 1990

By Ben Ainsworth

I am going to discuss gold mining in Mexico during the last twenty centuries and try to suggest some of the futures that may develop in this industry in the next decade. Before I start this rapid review of such a long developing mining tradition, T must give credit to my sources. I an, talking here as an associate of Commoditi,c,s Reseflrch Unit Ltd. of London (better known as CRU) and as a principal of Ainsworth-Jenkins Holdings, an international mineral resource consultant group that has been exploring and deveJoping mining properties in Mexico and Central America for the last six years. CRU is the leading consultancy providing industry, governments and financial institu­tions with analysis and advice on the metals and the mining industries. They recently completed a three volume study entitled Gold Mining Opportunities in Mexico. This .<1tudy describes Mexico, the business environment, its geology and details its gold mining potential with property descriptions and maps. I have adopted and adapted the s11mmari.zed Mexican government statistics and rlrawn on some of the historical comments in these volumes. However, I do not have ti me (nor would it be appropriate) to be giving the details of the CRU work. Jorge Ordonez, whose shoes I am trying to fill today, was a major contributor to the study and it was an honour to be asked by Willem Beunderman, the Principal Editor, to step in when Jorge was unfortunately unable to be here. Jorge has been an enormous help to Ainsworth­Jenkins and a consistent friend of foreign investment in Mexico. Our own work in Mexico has allowed us to obtain a few useful in­sights into this most interesting slice 0f Mexican history.

Jan 1, 1992

By John V. Beall

A completed feasibility study executed by an independent agency can benefit a company in two ways. Inside the organization, it verifies the project staffs ideas and their concept of the facility. Outside the company, it can be utilized to obtain equity partners, debt financing, and other forms of credit. It is advisable to bring in a project execution contractor for the feasibility study. A project execution contractor is able to work with engineers to develop the project concept, process flowsheet, and best utilization of the site. By getting an early start on understanding a company&apos;s policies and working methods, a project execution contractor saves the company money since it does not have to go through the educational buildup twice. The contractor is a specialist in putting together a bankable document that can be taken to a financing source. It answers all the agency requirements on the first pass. In addition, the contractor can advise an owner on likely financing sources since he works on the worldwide market every day. A less obvious advantage of including the contractor in the study and predevelopment buildup stages is the importance of coordinating finance and technical input. The financing source influences equipment specifications, procurement, logistics, project schedule, cash flow, and liquidity. There are many surprises in store for any manager of a large international project involving worldwide financing and purchasing. The job does not have to be made more difficult by bringing in a contractor after all predevelopment steps are taken. The contractor can still work if the predevelopment steps have been done, even if he does not agree with them. But early contractor involvement is the preferable solution.

Jan 10, 1980

By Daniel W. Kappes

The 1.8 million tonne Itos tailings deposit is the result of sever­al years of processing by Comibol of the San Jose and ltos Mine ores at Oruro Bolivia. The historic flowsheet consisted of a flotation circuit in which silver-bearing galena and stibnite were concentrated. Approximately half the silver in the ore was not recovered, and the existing tailings contain slightly over 200 grams silver per tonne, in the form of complex sulfides of silver, antimony, lead, and other metals coating grains of pyrite. An extensive laboratory program was conducted to exam­ine conventional processing l)lethods such as cyanide leaching and regrinding followed by flotation. However, the silver-bear­ing sulfides are in intimate contact with the pyrite and the pyrite comprises 30% of the total tailings weight. Cyanide leaching recovers only 40% of the silver and the cyanide consumption is uneconomically high. Flotation produces an upgraded, but still uneconomic, concentrate. For this reason, chloride leaching had been evaluated by Comibol, and in the mid 1980's Comibol undertook an innova­tive test consisting of two 300 tonne field heap leaches using a cold chloride solution. The tests were partially successful, but could not be applied to the bulk of the tailings which are already ground to 50% minus 200 mesh. In 1992, Kappes, Cassiday & Associates undertook to develop a hot agitated chloride leach flowsheet, and is current­ly constructing a treatment plant under a turnkey contract from a Bolivian company, Baremsa, S.A. Using this process, 85% of the remaining silver can be recovered, with significant by-prod­uct credits from antimony and lead. The project features hot, agitated acidic chloride leaching, filtration, crystallization of lead chloride, and precipitation of metals using iron scrap. Arsenic is removed from the precipitate by caustic leaching, and minor metals by furnace refining. Antimony is recovered as the oxide by cupelation, and silver is poured as <lore from the cupel. Production rate will be 600 tonnes per day. Startup is scheduled for late 1995.

Jan 1, 1996

By Terry McNulty

There are many potential pitfalls in the commercialization of innovative technology. The failures often are remembered longer than the successes, thereby serving as deterrents to subsequent attempts. The mineral industry&apos;s future depends on effective innovation. So it is essential that the causes of failure are understood. Innovation can be examined equally well in the context of geophysics, geology or mining. However the author&apos;s experience has been in mineral processing and chemical engineering. So the following discussion is limited to processes and/or plants for producing mineral concentrates, metals or inorganic chemicals. More of what follows has to do with underachievement or failure than success. But this article demonstrates that there is a strong element of predictability in the former. Furthermore, it is a credit to the minerals industry and to the engineering profession that a very high percentage of projects succeed in achieving design capacity and forecast operating costs. Innovation means the introduction of something new. In this article, the words "innovative technology" are used broadly. They include new processes and novel combinations of established unit operations, as well as novel types of processing equipment or largest-ever equipment models. The discussion of project outcomes is based on personal experience or on published information. Citations are given for technical publications that provide either project information or insights into the methodology used to analyze project performance. However, specific projects have not been identified due to the rather negative connotations of some of the conclusions drawn about the less favorable outcomes.

Jan 1, 1998

By Harold A. Taylor

The first use of graphite is lost in the mists of time. It was used by primitive man to make drawings on the walls of caves and by the Egyptians to decorate pottery. As early as 1400 AD graphite crucibles were being made in the Haffnerzell District of Bavaria. Through the Middle Ages graphite was confused with other minerals, especially galena and molybdenite. Two common names that are still being used for the mineral are plumbago, meaning lead-silver, and black lead. The latter name implied that graphite is either composed of lead or at least contains a large percentage of it. Gessner is credited with having recognized it as a separate mineral in 1565, but its composition was not determined until 1779, when Scheele demonstrated that graphite oxidized to carbon dioxide, thus proving its carbon constitution. In 1789, Werner named it graphite from the Greek word graphein, meaning to write. The United States has long relied on foreign countries for its graphite supplies. This reliance has been due more to the lack of suitable domestic graphites than to any particular preference for buying minerals overseas. Sri Lankan graphites were imported as early as 1820, and Madagascar graphites have been imported since the properties on that island were opened up about a hundred years later. Mexico has long supplied the United States with most of its requirements for amorphous graphite.

Jan 1, 1994

By R. F. McFarlin, H. E. El-Shall

Since its inception, the Institute of Phosphate Research has examined every promising proposal in order to find an economical, practical and environmentally sound method of dewatering phosphatic clays. The in-house development of the FIPR/DIPR process (DIPR = Dewatering Instantaneously with Pulp Recycle) would appear to answer that quest. When small amounts of fibrous materials are mixed with clay slurries and flocculent, rapid dewatering occurs. Clay solids contents of 20 to 25% can be attained by simply rolling the clay mass down an inclined screen. Higher solids (>40%) are reached by physically pressing the cake; e.g., with a belt press. Because mechanical pressing devices are too expensive for phosphatic clay treatment, FIPR has developed the "sandwich" method of simultaneously dewatering the phosphatic clays and reclaiming the mine cut, as well as a second alternate, the "median strip" proposal. Economic projections of these bench-scale alternates suggest that the FIPR/DIPR process should be no more costly than present practice, when credit is given for the simultaneous reclamation accomplished.

Jan 1, 1993

By Eric Leung, Stephen G. Hardcastle, Andrew Dasys

In today&apos;s economic environment, Canadian mines can ill afford to neglect their ventilation systems as they can consume 30- 40% of the electricity used in underground mines. In addition, Canadian mines can incur significant heating costs. For mines to be their most cost efficient they must embrace existing and emerging technology to optimize the use of their air; namely, maximizing its work in diluting and removing pollutants, limiting leakage, and avoiding the unnecessary consumption of costly fan pressure all the while ensuring the health of their workforce. Furthermore, in Canadian mines which are heavily dieselized there is great interest within the industry to convert from a rigid quantitative approach to ventilation, based upon engine size, towards a more flexible qualitative approach that provides credit for Clean engine technology" and permits ventilation supply to be driven and based upon pollutant demands. In the future, there is even the possibility that ventilation will only be required to supply oxygen to diesel equipment as the underground hands-on workforce is replaced by surface workers and tele-operation. Such changes will allow mine operators to minimize their electrical usage and operating costs, for in its simplest form the cost of running a fan is proportional to the quantity3; therefore, reducing current ventilation demands or limiting increases brought on by more stringent legislation, can produce very significant cost savings. CANMET, through ventilation surveys and use of its modern 3D-CANVENT ventilation simulator, have been demonstrating to the mining industry how ventilation can be optimally delivered at reduced costs. El-Equip with their leaky-feeder communications and MultiVENT monitoring and control system have facilitated mines to control fans and hence costs, and also monitor such ventilation parameters as pollutant concentrations. These two parties are now combining their efforts to develop an integrated air management system which will be demonstrated at CANMET&apos;s Experimental Mine Val D&apos;Or, Quebec. With such an air management system, the ventilation engineer will have: 1) a simple to use simulator to design and test ventilation scenarios; 2) remote controls of fans, doors and regulators to implement changes; and 3) real-time monitoring of airflow, pollutant concentrations, and both vehicle identity and location to show whether changes are necessary. It is only when all three are available, that a mine&apos;s ventilation system can be operated at minimum cost.

Jan 1, 1997

By Howard L. Hartman

Introduction The federal government&apos;s declining role in funding research has created a critical dollar gap for university departments of mining engineering. Industry, too, is affected by the drought. Research is lagging. Hardpressed universities are going to the private sector for funding. Mining companies should not shower universities with philanthropy, but a research partnership should be contracted on a pay-as-you-go basis. A model exists at The University of Alabama (albeit not in mining) that could be adopted by the mining industry. An equal partnership arrangement between a university and an industry for conducting research is proposed. The concept is not that a corporation sponsors and a university performs the research. Nor does it call for educational contributions or giveaways from industry. Rather, the corporation and the educational institution enter into a cooperative research endeavor, a full and equal partnership. Both parties contribute and both share the benefits. A key to the relationship is that it has a single objective: it must generate profits or reduce costs for the company. Working Model Recent literature is replete with examples of proposals for joint research endeavors, involving both contracts and grants, between industry and universities (Bronwell, 1971; Bugliarello, 1978; Branscomb, 1981; Sanford and Holland, 1982). They are all good proposals and offer something to both parties. They are, however, not widely supported. Few have received a favorable nod from the US mining industry. Though it may be logical, for example, to remake the American Mining Congress (or some new consortium) in the mold of umbrella-type industry organizations to fund cooperative research with mining institutions, such proposals have never flown. What model, then, will work? First, look for a model that has worked in industry in general. Second, seek to apply it to mining specifically. There is a model project that satisfies the first of those criteria. It is a project complicated by a third party, in addition to a corporation and a university. In January 1983, the "Factory of the Future Project" was initiated between The University of Alabama (UA) and General Motors Corp. (GM). The United Auto Workers (UAW) is a third party to the agreement. The factory was GM&apos;s Rochester Products Division manufacturing plant in Tuscaloosa, AL, also home of UA&apos;s main campus (Fig. 1). Saving a Plant The agreement came about at the initiative of GM and the UAW. Faced with having to close the plant because of excessive production costs, company and union officials proposed to the university that an applied research facility be established at the plant. The university would operate the laboratory, dedicated to $470,000 a year cost reductions for the company. The school would lease the 5.1 km2 (55,000 sq ft) space for $470,000 a year for three years. Any savings effected by the university&apos;s research effort would be credited toward to the rent. GM said the small factory, which made replacement carburetors

Jan 9, 1984

The Golden Grove Project area is located 220 km (137 miles) east of Geraldton in Western Australia (Fig. 1). The project is a joint venture involving Amax Exploration (Australia) Inc. (Amax), Electrolytic Zinc Co. of Australasia Ltd. (EZ), and Esso Exploration & Production Australia Inc. (Esso), each with 31 116% interest, and Aztec Exploration Pty., Ltd. (Aztec), with a 3 1/2% carried and a 3% contributing interest. The venture covers two significant volcanogenic massive sulfide deposits and some 40 km (25 miles) of highly prospective Archean volcanics. During the course of the past 12 years (to 1983), all four companies were responsible for operating the project at one time or another and all influenced the discoveries. The Gossan Hill and Scuddles deposits are typical examples of volcanogenic massive sulfide deposits associated with Archean explosive submarine acid to intermediate volcanic complexes. They are located in the northwesterly trending Yalgoo greenstone belt of the West Australian Archean Shield. Gossan Hill, located in 1972, is essentially a copper deposit with minor zinc lenses; to date, 97 diamond holes have delineated a geological resource* estimated to contain 13 Mt (14.3 million st) of of 3.4% Cu and 13 g/t (0.38 oz per ton) Ag in the main lenses with minor lenses totaling 2 Mt (2.2 million st) of 3.7% Cu and 17 g/t (0.49 oz per ton) Ag and 1.7 Mt (1.9 million st) grading 1.5% Pb, 14% Zn, and 87 g/t (2.8 oz per ton) Ag. Scuddles is a zinc-copper deposit with gold and silver credits. It *Resource estimate provided by Esso for inclusion in Aztec Exploration Pty. Ltd. 1982 Annual Report was discovered in 1979 and, to the end of 198 1, had been delineated with 42 diamond holes. On the basis of this drilling, a geological resource* of 26 Mt (28.7 million st) has been estimated in three coalescing lenses. The lenses comprise 7.5 Mt (8.3 million st) of 2.1 % Cu, 12 g/t (0.35 oz per ton) Ag, and 0.3 g/t (0.009 oz per ton) Au; 7.6 Mt (8.4 million st) of 0.4% Cu, 9.9% Zn, 73 g/t (2.3 oz per ton) Ag, and 0.7 g/t (0.02 oz per ton) Au; and 1 1.0 Mt (1 2.1 mil lion st) of 1.1 % Cu, 9.3% Zn, 8 1 g/t (2.6 oz per ton) Ag, and 1.5 g/t (0.044 oz per ton) Au. Readers are referred to Frater (1978) and Harris et a). (1982) for a more detailed geological account of these deposits.

Jan 1, 1991

By Charles Morris, Patricia Petty

Charles Morris Minerals engineers have a new opportunity to shape their industry&apos;s future. They can help secondary school teachers in their own communities improve their scientific knowledge and thus be better prepared to teach their students. Local sections of AIME and other groups are being asked to sponsor expense-aid scholarships for teachers who complete the summer field course A Total Concept of the Mining Industry. Now in its 18th year, the six-week summer course is presented by the Colorado Mining Association Education Foundation Inc., in cooperation with the Colorado School of Mines Office of Special Programs Continuing Education. The course will be held June 9 through July 18. "In the past, we have been successful in soliciting support for teacher-scholars from many organizations, corporations, and individuals within the industry," said John Robertson, Jr., Foundation chairman. "Now we hope to enlist the help of engineers at the grass roots level in identifying qualified local teachers and giving them what it takes to participate in this continuing education program." Robertson said the course provides secondary school teachers, counselors, and administrators with a working knowledge of the mining and metallurgical industries. It also helps teachers recognize career opportunities for their students. "With the industry facing a challenging new era, we must have teachers who can relate the excitement of this challenge to their students. They will inspire future generations of resource finders, developers, and managers," he said. More than 670 teachers in 27 states, including 45 graduates of the "class of &apos;85" have completed the course and gained six semester hours of graduate credit. The Foundation&apos;s Planning and Curriculum Committee meets regularly to develop the course outline and recruit the faculty. Lecturers are selected on their ability to communicate with people not familiar with the industry. Last year, 67 faculty members came at their own time and expense to discuss their specialties, ranging from exploration to marketing. Normally, teachers receive scholarship aid in the form of tuition and fees, and transportation and meals while on field trips. Expense-aid scholarships cover room and board on campus for those beyond the Denver-Metro area, and travel to and from Golden. "We hope to broaden the appeal and the geographical range of the program," Robertson said. Inspiration for the field summer program for teachers came in 1967 from a mining engineer, the late C.L. (Lindy) Barker, a 1931 graduate of the Colorado School of Mines. Barker and a group of concerned individuals convinced the Colorado Mining Association to accept sponsorship of the course in 1968. The Colorado School of Mines and its Office of Special Programs and Continuing Education agreed to be a co-sponsor to give it accreditation and provide physical facilities and coordination. The first course was held in 1969. Operating funds were solicited from industry to pay tuition, course material, the cost of a course coordinator, field trips, and overhead. Through the years, personal contact by an industry representative has been the most effective teacher recruiting tool. Through expense-aid scholarships provided by local sections of professional organizations, such as AIME, as well as CSM alumni and other friends, there will now be a greater incentive for more teachers to get to know the minerals industry and pass that knowledge on in the classroom.

Jan 3, 1986

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

Jan 1, 2009

By Richard C. Travis, Edward C. Dowling

A detailed kinetic study of the flotation installation at the Metcalf Concentrator revealed a rougher flotation circuit operating under less than optimal conditions. Based on these results, a project was initiated to approximately double the rougher flotation capacity by increasing the installed volume from 780 cubic meters to 1,560 cubic meters. This project, which was completed in early 1991, replaced the existing cells with larger capacity cells. A comprehensive analysis of results demonstrates significant metallurgical benefits. INTRODUCTION/BACKGROUND The Metcalf Concentrator is located in Morenci, Arizona and is part of Phelps Dodge Morenci, Incorporated. Sumitomo Metal Mining of Arizona is a minority partner in the operation with 15% interest. The Metcalf Concentrator is the newer and smaller concentrator and operates in conjunction with the Morenci Concentrator. Operating capacity at Metcalf is currently 48,000 TPD of ore on a 365 days per year basis. The Metcalf Concentrator was commissioned in 1974 at a 30,000 TPD operating rate for the purpose of treating ores originating in the Metcalf Mine. The mine takes its name from the former town of Metcalf which was named for Robert Metcalf who was credited with discovery of the mineral district. The predominant ore mineral is chalcocite which occurs as a secondary enrichment closely associated with iron pyrite. The host rock is largely granodiorite and quartz monzonite. The original rougher flotation circuit consisted of a total of six rows of Wemco 8.5 cu. meter (300 cu.ft.) flotation machines treating pulp from the two grinding sections (Sections A and B). Each row was configured in a 4-4-4 arrangement. Shortly after startup the throughput rate was increased significantly without sustaining a recovery loss. This increase was achieved by raising the target value for the particle size of the cyclone overflow which is the rougher flotation feed. Shortly thereafter, the capacity of the pump and cyclone began to restrict further increases in throughput. After testing, two 66 cm. (26-in.) cyclones and a 12-in. X 12-in. centrifugal pump replaced the original classification equipment. As a result of these modifications, the grinding section could routinely process in excess of 42,000 TPD. Due to the increased tonnage rates, limitations in the rougher flotation circuit performance were observed. In an effort to improve the performance of rougher flotation with this higher throughput, the speed of the flotation mechanisms was increased from 230 RPM to 250 RPM. This change improved the suspension of the coarser feed and induced additional air into the pulp. It did, however, apply additional strain to the motors, shortening their life. At these elevated processing rates, it was found that the dart valves operated almost entirely at the top end of the control range and could not efficiently handle upsets from the grinding section. This was remedied by lowering the end overflow weir and allowing some of the tailings to overflow the end weir. However, in order to obtain acceptable recovery levels, the flotation pulp was maintained at a high level, adversely influencing the rougher concentrate grade.

Jan 1, 1993

By J. L. Schroder, William J. Halvorsen, Wiliam W. Lyons, Kent C. Ware, Sheridan A. Glen, Donald C. Simpsom

The prospects for near-term growth in coal demand are exceptional: the federal government recently targeted 141 oil- and gas-fired generating units for mandatory conversion to coal; coal-to-synfuel developments are proceeding at a steady clip, with construction of a $1.2 billion gasification plant to begin this year in Beulah, ND; uncertainty over nuclear power and stratospheric oil prices enhance the steam coal market; the export market is ripening; and an influential new political force (the Senate Coal Caucus and Congressional Coal Group) is flexing its muscles on Capitol Hill. But the rosy picture is muddled by signals, often conflicting, sent out by federal agencies. Although EPA can be credited with relaxing its grip on the Clean Air Act, its sulfur dioxide control strategy is still often at odds with the Administration&apos;s call for domestic energy (coal) development. B. R. Brown, president of Consolidation Coal Co., sums up the situation: "Every mule is pulling in a different direction." Often in the midst of the fray is the small operator who has been hardest hit by the stagnation of coal markets. Layoffs, shortened work weeks, and mine closures were rampant in the eastern and midwestern coal fields, even among large producers. The longstanding boom in western coal was tempered during 1979 by a noticeable slowdown in announcements of new mine construction. The prognosis: Eastern coal will remain in the doldrums for quite a while to come as it works off some 90 Mt of overcapacity. Midwestern coal will fare no better due to the regulatory-influenced appetite of midwestern utilities for low-sulfur western coal. This displacement should ease, though, as new power plants equipped to burn high-sulfur coal come on line in the years ahead. In the West, the National Coal Association projects production to increase a healthy- 10% this year, although mine-to-market transportation looms as the single largest stumbling block to marketing efforts. Fatalities Up 40% in 1979 The National Coal Association estimated total coal production in 1979 at 671 Mt, an increase of 13% over 1978. Of this total, the East and Mid-west accounted for 476 Mt (71%) and the West produced 195 Mt (29%). With the consistent rise in western production playing against flat outputs in the East and Midwest, underground mining&apos;s share of total production continues to slip and is expected to account for only 38-39% in 1980. Incidence of deaths and injuries at US coal mines soared in 1979 over 1978 rates. MSHA figures (still subject to final adjustments) reveal a death rate of 0.07 per 200 000 man-hours, up 40% over 1978&apos;s 0.05 figure. MSHA chief Bob Lagather attributed the death incidence to the large number of new coal mines put on line in 1978, which he estimated at between 350 and 400. Nonfatal injuries rose to 8.48 per 200 000 man-hours, up about 15% from a 1978 rate of 7.35. In absolute numbers, MSHA counted 144 fatalities and 18 111 lost-day injuries during the 1979 calendar year. The 144 coal mining deaths in 1979 is the highest number of coal fatalities at US mines since 1975.

Jan 5, 1980