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By C. J. Havard, G. C. Taylor, D. G. Cook, N. C. Ollerenshaw, D. K. Norris

"The area encompassed by this report is the eastern and northern Cordillera, shown on the composite map accompanying these background papers. It extends from the 49th pm•allel to the Arctic Ocean and from the Rocky Mountain and Tintina trenches to the Interior Plains. The Mackenzie delta is included in the discussions because of the implications of the bedrock geology of the Arctic Plateau and Coastal Plain on the hydrocarbon and mineral potential beneath it.The eastern and northern Cordillera forms the back-bone of the Western Canada sedimentary basin and from it most of the principles of orogenesis and epeirogenesis relating to the understanding of the structural, depositional and fossil record of the basin have been derived. It may be divided roughly into two parts, reflecting basic differences not only in structural style but also in mineral potential. The more easterly and younger rocks generally contain hydro-carbons, coal and non-metallic minerals; the more westerly and older rocks contain metallic and industrial minerals."

Jan 1, 1970

By G. Vibert Douglas

It often happens that the field geologist encounters a fault in ground where there is little to guide him with regard to the throw, or vertical displacement, and the heave, or horizontal displacement. The following construction gives both of these components of the fault, and the writers hope that it may prove a help to others. The construction is applicable to both normal and reversed faults. Briefly the procedure is as follows: Take a point which is common to the faulted geological feature and to the fault plane and on the downthrow side of the fault. Move this point in the horizontal plane in the direction indicated by the fault striæ. Rebat the point down to the plane of the fault and obtain its throw. Next consider the other side of the fault and truncate it down by the amount of the throw just determined. Then project the line of the geological feature through to the trace of the fault-plane at the lower horizon. The result is the relative positions of the two parts of the original geological feature as severed by the fault. In Figure r, let us consider a typical normal fault, that is, a fault in which the hanging-wall has gone down relative to the footwall. This characteristic, or its alternative, the reversed fault, is determined by observation on the ground. Let AB be the line of any geological feature such as the edge of a dyke, vein, or bedded sediment. The plane of which AB is the trace may have any dip; in the present case let us say 70° right. Let FF be the trace of a fault-plane which may have any dip; let us say 35° left in this case.

Jan 1, 1928

By J. W. Reynolds

Use of crushed waste rock recovered by sink-float separation from normal ore production for backfill is an established procedure at Commco's Sulhvan mme, Kimberley, British Columbia. Need for a safe method of placement in voids which were difficult to reach by gravity methods led to a co-operative venture with Radmark Engineering Ltd. in the development of a workable pneumatic transportation system for rock material. This paper reviews work done to date in a current program, and includes comments on the nature of the fill so placed, options for cementing such fill, implications for other aspects of mining and references to other applications of the system by other organizations who exchanged experiences with the Sullivan mine staff during the five-year period reviewed.

Jan 1, 1972

By J. P. Norrie

The presence of copper-bearing rocks in the Coppermine River area of Arctic Canada has long been known. Word of this was probably circulated along the Arctic and Hudson Bay coasts by the Eskimo, who no doubt traded articles made from native copper among themselves. It is not known whether any of these ever reached the southern shores of Hudson bay. The Indians, also, knew of the occurrence of copper here, as they served as guides to Hearne when he made a successful trip over land from Hudson bay to the Coppermine river. The possible commercial importance of these copper deposits was early appreciated by the Hudson's Bay Company, who on December 7th, 1770, despatched Samuel Hearne from Fort Prince of Wales, now Fort Churchill, to investigate them. He reached the then unnamed river at a point forty miles from its mouth on July 14th, 1771, and after surveying the river to its mouth and naming it the Coppermine, he retraced his steps to Fort Churchill by an overland route. Hearne's expedition was probably the most remarkable and arduous ever attempted in Arctic exploration, but the actual value derived from the trip was entirely out of proportion with the hardships he must have suffered. He verified the occurrence of native copper, but his astronomical and other observations were of little value. Until 1912 no concerted effort was made to obtain any definite information as to the geology and economic value of the Copper-mine deposits.

Jan 1, 1931

By Y. Zedan

Cutting fluids play important roles during machining, including the reduction of friction and temperature. Using a cutting fluid, however, degrades the quality of the environment and increases machining costs. The aim of the present research work is to study the effect of cutting fluids and their interactions with cutting parameters on the quality of holes during the drilling of 6061-T6 aluminum alloys. The lubrication types and modes investigated are dry machining, flood lubricant machining and minimum quantity lubrication machining (MQL), while the part quality criteria include the surface finish, the dimensional accuracy, and burr forms and sizes. A scanning electron microscope (SEM) was used to investigate the formation of built-up edges (BUE) in the drill flutes as well as the surface texture of drilled holes. It was found that dry machining and MQL machining can produce parts having quality levels comparable to those obtained in wet machining, when using the optimal cutting conditions.

Jan 1, 2011

By Fatemeh Pourakbari, Mohammad Reza Yarahmadi, Abbas Sam

Pyrite is the most abundant sulfide gangue mineral in copper porphyry ores. In spite of addition of lime in large quantities to depress pyrite in flotation, considerable amount of this mineral is reported to concentrate, particularly in rougher and scavenger stages. With the Sarcheshmeh pit advancing to a greater depth and reaching to the hypogene zone, the amounts of pyrite and chalcopyrite in the feed are increased. Hence, a reduction in the copper grade and increase in the sulfur content of the concentrate are observed. In this study the effective factors on the pyrite floatability at the circuit flotation was considered at Sarcheshmeh Mine. Mineralization zones in the pit were firstly identified. Then, sampling points were located using GPS system. On the basis of mineralogical composition and morphology, the ore was categorized into five main classes. In this classification the amount of lead and zinc and also pyrite locking with other minerals were analyzed. The study of polished section indicated that inclusion in pyrite was very frequent in all classes, mostly composed of the floatability of pyrite. Flotation tests were performed on the samples of different classes at pH of 11.8 after conditioning time. It was shown that, pyrite floatability was decreased with a decrease in the lead content of the feed samples except for the second class, while for all classes an increase in zinc content contributed to a decrease in pyrite floatability and recovery. It was found that, the lowest pyrite recovery (1.89%) was corresponding to pyrite–molybdenite dominant mineralization with Zn of 0.33% and the highest recovery (86.89%) corresponding to pyrite vein dominant mineralization with Zn equals to 0.9%.

Jan 1, 2016

By Roger V. Pierce

"WITHOUT mineral wealth, modern man would not exist. True, man could survive on a stone-age basis with an average life expectancy of, say, 25 to 30 years -once he got past infancy.However, no metal would tip his arrow in a hunt for protein; no steel plough would break the soil for the organized planting of seed; and no coal, nor oil, nor natural gas nor uranium fuels would pro-vide him with light or beat or safety from either beasts, or other men, or an unkind nature that threatened him and his family.Modern agriculture, fishing and forestry represent the other three wealth-producing industries. With-out metals, non-metallics and energy minerals, however, it would be impossible to fit any of these to man's modern needs."

Jan 1, 1967

By Gabriel G. Walton

Conventional numerical modelling tools for analyses of underground excavations are well suited for modelling elastic behaviour and yield response of geomaterials with very simple constitutive behaviour. Non-dilatant elastic and perfectly plastic behaviour is most commonly used for preliminary analyses in the absence of the data required to consider more complex behaviours such as strainweakening and dilation. For truly brittle models, this deficiency is more acute. Current state of practice allows only for reliable estimation of the volume of failure, but not for any prediction of displacement. In fact, there is no consensus in rock engineering regarding the most accurate approach or most suitable tool to model the magnitude of the plastic deformation that strain-weakening or brittle rocks experience at tunnel boundaries, particularly when support is incorporated into these models. This problem is largely a function of a poor understanding of how inelastic dilation occurs in different types of rockmasses, the rate controls on strength loss and volume change during yield, and the complexities of rock-support interaction in yielding conditions.

Jun 1, 2012

By Samuel O. Akande

"Gold occurs as native metal, in electrum, and in a telluride mineral in quartz carbonate veinlets of three vein systems at the Ross Mine, northern Ontario. The 14 Vein System is made up predominantly of concordant veinlets within layered ankeritic dolomite stratabound by, and conformable with, andesite tuff Individual veinlets contain pyrite, sphalerite, galena, chalcopyrite, tennantite, pearceite, proustite, native gold and electrum in a matrix of quartz, dolomite, ankerite and calcite. The 2B Vein System is made up of both concordant and discordant veinlets within andesite tuffs. The veinlets contain pyrite, chalcopyrite, sphalerite, bornite, tennantite and free gold in quartz, calcite and dolomite. The 18 Vein System is comprised of stockwork veinlets in and around intrusive syenite which has both sharp and gradational contacts with enclosing andesite tuff The veinlets contain pyrite, chalcopyrite, bornite, chalcocite, native gold and calaverite. Sulphide and silicate minerals in veinlets and wall rocks are stable assemblages for the regional metamorphism of greenschist rank. ,The 14 Vein System is interpreted as a metalliferous siliceous carbonate chemical sediment, the components of which were leached from the underlying volcanic rocks by convecting sea water and subsequently deposited on the sea floor between the extrusion of flows and pyroclastic rocks. Subsequent regional metamorphism and intrusions remobilized and redistributed the syngenetic stratabound material into dilatant fractures in adjacent tuff, as in the 2B and the 18 vein systems."

Jan 1, 1982

By E. L. Jones

THE concentration of tin in the tailing from Sullivan ore has been de-scribed by H. R. Banks, superintendent of the Sullivan concentrator, in a paper presented at the annual meeting of the B.C. Division of the Institute in October, 1941(1). The reduction of the concentrate EARLY EXPERIMENTAL WORK Experimental work on the smelting of Sullivan tin concentrate was done in Trail. Preliminary tests in the laboratory indicated that the concentrate could be successfully treated in an electric furnace. A small electro-thermic pilot plant was built and, at the same time, reduction tests were made in an oil-fired reverberatory furnace. Both types of treatment gave satisfactory results. It developed that no fluxes, other than those already in the ore and in the ash of the reducing agent (either coke or coal), were needed. By using an excess of iron, a complete recovery of the tin in the slag was obtained, but with 20 to 30 per cent iron in the tin. A counter-current treatment was thus indicated, viz., the primary slag was first treated with hard-head (iron-tin alloy) from the refining and final slag smelting, producing tin with 2 to 4 per cent Fe. This secondary slag was subsequently treated with scrap iron to produce tin-iron alloy, and a final slag low enough in tin to waste. By following this line of endeavour, a tentative flow-sheet was drawn up and a successful operation was established. Without resorting to electrolytic refining, a metal comparable in purity to standard tin was produced. Metallurgical results and operating costs were found to be very similar with an electric furnace or a fuel-fired furnace. 'However, electric furnace smelting was chosen because the furnace required was smaller, and because some doubt existed as to the cleaning of the final slag in the reverberatory furnace reduction.

Jan 1, 1944

By E. Landry, W. Naudts

"The amenability theory was developed by Alex Naudts and considers grouting operations as continuous permeability tests where Newtonian test fluid water, is replaced by a cementitious or solution grout. It utilizes hydraulic conductivity and grouting data to establish the amenability coefficient of a particular grout zone. The amenability coefficient reflects the quantity of apertures or voids accessible to the selected grout, divided by the number of apertures accessible to water, in the zone intersected by the grout hole. By calculating, in real time, the effectiveness of a particular grout at the start of a grouting operation, the most appropriate grout to match design criteria can be targeted. By incorporating the amenability theory in every grouting operation, schedule savings and an increase in productivity are typically achieved. Three short case studies illustrate different enhancements in productivity: At an underground mine during the construction of declines, a cement based suspension grouting program was highly ineffective and did not appear to affect the inflow into the mine workings. The amenability theory was utilized to evaluate the grouting program and based on this evaluation, changes to the grouting program were made which allowed the grouting to meet the project’s objectives. On another project, a pre-excavation grouting program implemented during shaft sinking operations utilized the amenability theory to select the most suitable grout for the program. Schedule constraints also influenced the selection of the grout. In the third case history presented, the amenability theory was used to select the grouting sequence of every individual grout hole for a grouting project in a highly heterogeneous soil formation. INTRODUCTION The amenability of a given soil, civil structure or rock formation for a particular grout formulation is a measure of the ability of that grout to permeate the pores, fissures and apertures water will flow through. The amenability coefficient of a particular grout for a specific zone equals the percentage of apertures, pores and fissures accessible by water that are also accessible by grout. Grouting should be viewed as a continuous permeability test, where the apparent in-situ hydraulic conductivity value for a particular grout zone is continuously evaluated, using grout instead of water as test fluid."

Jan 1, 2019

By R. T. Seaman

There are several hydrometallurgical alternative processing options under development for high enargite and arsenic containing copper concentrates ranging from biological, atmospheric, medium temperature oxidation to total oxidative leaching. The most developed of these options is the CESL process boasting pilot campaigns totaling more than 8760 hours of fully integrated continuous operation, as well as, over two thousand batch scale oxidation tests performed on dozens of concentrates for flowsheet development. This paper reports the observed deportment of arsenic under varying arsenic, iron and acid oxidation conditions; it also describes the impact of iron to arsenic ratios and residue recycle on overall arsenic behavior and its stability in residue. INTRODUCTION The CESL Hydrometallurgical Process (CESL) was originally developed to compete with smelting of clean chalcopyrite concentrates. High Treatment Charges and Refining Charges (TC/RCs) combined with premiums on London Metal Exchange (LME) grade copper from onsite refining made treatment of copper concentrates using CESL a viable option at the time. As world demand for copper increased and a subsidized Chinese refining market developed, smelting contracts became more favourable for the miner and focus was placed on modifying the CESL Hydrometallurgical Process to handle concentrates with elevated deleterious elements. Dozens of pilot campaigns processing concentrates containing elevated concentrations of uranium, fluoride, mercury and nickel all led to further developments of the CESL Hydrometallurgical Process. In 2016 a United States patent was granted for a novel modification of the CESL Hydrometallurgical Process for recovery of copper from arsenic-bearing and/or antimony-bearing copper sulphide concentrates, Henry Salomon de Friedberg (2016). To date, over 2000 bench scale tests along with five fully integrated closed loop pilot campaigns, totaling over a year of online operation time, have been conducted processing arsenic bearing copper concentrates. This paper summarizes the observed behavior of arsenic under varying autoclave and process conditions.

Jan 1, 2019

By R. O. Burt, R. W. Bruce

"IntroductionGravity concentration, the separation of two or more minerals due to the difference in their relative specific gravity and usually in a fluid medium, is the oldest recorded form of mineral processing.The principles of gravity concentration were known to, and practiced by, the ancients and Hoover's commentary to De Re Meta/lied'' notes many early references.Over the centuries, as direct smelting ores became more and more uncommon, the mineral processing industry developed and along with it many varied methods of concentration. Gravity concentration declined rapidly in importance in the early twentieth century, and it is only in the last decade that its advantages are being re-evaluated.A significant proportion of ores are processed by gravity; a large proportion being in the iron and coal industries<'>, or in the treatment at very high volume of relatively coarse alluvial deposits. The tin dredges of South East Asia and Beach sand plants of Australia are prime examples.An indication of the broad application of gravity concentration is the variety of minerals presently recovered. A list is given in Table 1; this list is not exhaustive.Principle of Gravity ConcentrationGravity concentration methods separate minerals of different specific gravity by their relative movement in response to gravity and one or more other forces, the latter often being the resistance to motion offered by a viscous fluid, such as water or air.The relative movement of minerals to one another is achieved by a variety of methods. These are: separation in a fluid of intermediate density (heavy media separation); by stratification (such as in jigging); in a flowing fluid (cones, spirals, sluices etc.) and with a horizontal shear (shaking tables etc.)."

Jan 1, 1989

By J. C. Salas, A. Weishaupt, J. A. Guzman

The origins of the electrorefining process date back to 1869, when the first ER cathodes were produced at Pembrey, South Wales. By the time that Pembrey was closing, Chuquicamata tank house was under construction, initiating in 1915 a long history of electrolytic cathodes production. Initially electrowon cathodes and later electrorefined cathodes were produced. During the history of Chuquicamata tank house, there have been several challenges associated with the quality demanded for electrolytic copper. Among them, the transformation from electrowinning to electrorefining in 1952, the onset of the direct commercialization of ER cathodes and the phase out of wire bars in the 80s, several technological changes including the implementation of permanent cathodes, and certainly the constant increase in complexity of the anodes refined. This paper explores the manner in which Chuquicamata has addressed these challenges and examines its links to process characteristics, which have been necessary to maintain a product quality according to market requirements and a brand, “CCC”, that is widely recognized worldwide. INTRODUCTION Located in the north of Chile, in the Atacama Desert, Chuquicamata is an open pit copper mine that for many years has played a relevant role in the global and local mining industry. Known from prehispanic times, the Chuquicamata deposit was initially developed between 1912 and 1915 by the Chile Exploration Company, the operating company of the Chile Copper Company controlled by the Guggenheim Brothers in the USA (Yeatman, 1916). Officially inaugurated on May 18th, 1915, by the President of Chile who pressed a button in Santiago sending a telegraph signal to the power generation plant specially built in Tocopilla, 1500 km north. It signaled the beginning of generating energy, sending it to Chuquicamata, another 140 km east (“El mineral de Chuquicamata”, 1915), marking the beginning of its industrial operation.

Jan 1, 2019

By G. K. Herzog

THE problems relating to the construction and use o{ mining equipment are basically the same as those pertaining to equipment in other industries. It is true that much mining equipment is subjected to an unusually severe combination of shock, high stresses, abrasive wear, and corrosive ? conditions, but in other industries, also, equipment must operate under similar adverse conditions, so that their experiences may readily be applied to the problems of the mining industry. Steel and iron are for obvious reasons the most suitable materials for the construction of the greater part of the equipment used in the mining industry. For a large percentage of uses, the ordinary plain carbon-steels and ordinary or unalloyed cast-iron are, and probably will continue to be for a long rime, entirely satisfactory materials. There are, however, many. conditions which cannot be satisfactorily taken care of by these materials, and alloy steels and irons must be used where the greatest possible economy is desired. In general, alloy steels and irons are used where it is necessary or economically desirable to use materials possessing properties superior to plain carbon-steel or ordinary cast-irons, such as: (a) better strength (b) better wear resistance (c) better corrosion resistance (d) better resistance to high temperatures (e) better resistance to low temperatures or combinations of two or more of these advantages. There are also conditions where materials having other special properties are required, such as, for example, certain magnetic or electrical properties for electrical machinery; but in the great majority of cases, one or more of the five advantages listed are the most desired.

Jan 1, 1938

By M. Tanaka, H. Narita, K. Morisaku

"The selective separation of palladium (Pd), platinum (Pt), and rhodium (Rh) from a hydrochloric acid solution by solvent extraction was investigated using amide-type extractants, i.e., N,N,N’,N’-tetra-n-octyl-thiodiglycolamide (TDGA) and N-n-hexyl-bis(N-methyl-N-n-octyl-ethylamide) amine (BisAA). The separation experiments employed two separation schemes: (1) extraction of Pd with TDGA and that of Rh and Pt with BisAA; and (2) extraction of Rh, Pd, and Pt with BisAA. Separation scheme 1 achieved the highly selective separation of each metal. For separation scheme 2, Rh can be recovered prior to Pd and Pt, despite having a lower selectivity for Pd/Pt than separation scheme 1. INTRODUCTIONThe recent increase in the use of platinum group metals (PGMs) in industry (especially auto catalysts containing palladium (Pd), platinum (Pt), and rhodium (Rh)) has lead to their increasing waste; therefore, improvements in the recovery techniques for PGM have received significant attention. In metal refineries, PGMs are mainly separated and purified by solvent extraction (Cox, 2004). The extraction process used in INCO’s Acton precious metal refinery is one of the most famous commercial processes and is utilized worldwide. In this process, silver is first removed as a residue (AgCl), and then gold, Pd and Pt are extracted from hydrochloric acid (HCl) solutions using dibutylcarbitol (DBC), dialkylsulfide (DAS), and tri-n-butylphosphate (TBP), respectively. Finally, Rh remains in the raffinate (Barns & Edwards, 1982).The development of a successful solvent extraction process depends on the choice of the appropriate extractants. We have studied the extraction of PGM using N,N-disubstituted amide compounds (Narita, Tanaka, Morisaku, & Abe, 2004; Narita, Tanaka, Morisaku, & Tamura, 2006; Narita, Tanaka, & Morisaku, 2008a, 2008b). They are relatively stable against acids, and their metal extractability can be improved by changing the side chain length and/or introducing additional donor atoms like sulfur and nitrogen. We have recently found that thiodiglycolamide and an amide-containing tertiary amine have good extractabilities for Pd and Rh, respectively."

Jan 1, 2012

By M. Djivre, T. Eger, A. Godwin, I. Bhattacherya

Load-haul-dump vehicles (LHDs) are extensively used in underground mining, however, equipment design and operating conditions contribute to restricted operator sight lines. The inability to clearly see people, objects, or hazards around the machine has contributed to a number of accidents including fatal injuries. In order to identify vehicle design characteristics resulting in restricted and blocked sightlines, line-of-sight assessments are traditionally completed in the field. However, field methods are unable to evaluate lineof- sight under dynamic operating conditions, and are limited in their ability to provide feedback on the impact of various operator characteristics such as sitting height. Results of this research show computer simulation and virtual reality can be successfully used to evaluate line-of-sight during the operation of LHD vehicles. In order to benefit from virtual reality applications, the work environment, LHD vehicle, and human posture need to be represented as accurately as possible. A computer simulation program with ergonomic analysis features, Classic JACK 3.1, was successfully used. Threedimensional CAD models of LHDs were developed from manufacturer specifications and pictures taken from LHDs currently in use. The LHD models were imported into the JACK environment, a digital human was positioned in the cab of the LHD vehicle, and the vehicle and human were driven over a typical mine route. Real-time feedback in the JACK program was used to identify what the operator could see under different operating conditions. Machine characteristics and operating scenarios resulting in impaired line-of-sight were successfully identified with this method. The JACK program could also provide real-time feedback on the human’s joint forces and torques, strength requirements, postural comfort, and metabolic energy expenditure. As a result, this method could be used to successfully evaluate musculoskeletal injury risk factors along with system design recommendations to improve workplace safety and productivity in any setting. The LHDs evaluated in the JACK software package can also be combined with mine models and imported into other VR software packages (e.g. Blender) in order to enable viewing in Laurentian University’s Virtual Reality Laboratory. The VR models using these packages can be viewed in stereo to provide better appreciation of spatial vision issues.

Jan 1, 2005

By J. L. Bowlby

OWING to the pressure of routine analyses at the laboratory during the past year, work of an investigational nature on water problems has been greatly curtailed. Favourable reports by the boiler inspectors indicate that the operators are giving satisfactory attention to feed-water treatment at the several . power plants. Some of the operators prefer lime and soda, others the phosphate and soda treatment. Springhill is still on the same commercial treatment as they were using last year, and satisfactory results are being obtained. This individual preference for a particular treatment, although it may be different for feed waters of similar nature, indicates that so long as proper conditions of alkalinity and concentration are maintained within the boiler, it is immaterial what chemicals are used in the treatment. This statement refers, of course, to the low-pressure boilers. In high-pressure boilers, a treatment such as lime and soda cannot be satisfactorily employed, on account of the precipitated calcium carbonate unduly increasing the amount of suspended matter. Only one case of impending trouble was reported during the year. That was at Seaboard, shortly after the new unit was placed in operation. Dissolved oxygen, considerably in excess of the permissible 0.030 cubic centimeters per liter, was detected at various points on the feed line. It was suspected that a de-aerating heater was being operated at too low a temperature, and chemical tests, made before and after the necessary adjustments, proved that this was the source of the trouble. While it has been impossible to give mine waters the attention they require, progress can be reported in the work carried out by the Mechanical Department. Past investigation of the action of mine water on various acid-resisting alloys is now bearing fruit, and it can safely be said that repair work on mine pumps has been reduced by nearly one-half.

Jan 1, 1938

By Lawrence Devon Smith

"What is Due Diligence?Within the mining industry the term “due diligence” is used to describe a detailed data review, generally in connection with the purchase or sale of a mineral property, the approval of a large capital expenditure, or the borrowing of a large sum of money.The term originates in the requirement of the board of directors of a corporation to “act honestly and in good faith ... and exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances” (OBCA, 1994). Furthermore, the law assumes that a corporation (or its board) will have exercised due diligence in the acquisition of an asset and, therefore, knowingly (in the absence of fraud or deceit) will have taken on the liabilities and obligations associated with the asset (Nelson, 1994). This is the familiar “Buyer Beware”.Directors are liable for their decisions except “if the director relies in good faith upon financial statements of the corporation represented … by an officer of the corporation or in a written report of the auditor, or a report of a lawyer, accountant, engineer, appraiser, or other person whose profession lends credibility to a statement made by any such person.” (OBCA, 1994).Hence the importance of reports prepared by professionals. They provide confirmation that the directors have exercised due diligence in the performance of their duties. For this reason these reports are referred to as due diligence studies"

Jan 1, 1997

By Lawrence Devon Smith

"Within the mining industry the term “due diligence” is used to describe a detailed data review, generally in connection with the purchase or sale of a mineral property, the approval of a large capital expenditure, or the borrowing of a large sum of money.The term originates in the requirement of the board of directors of a corporation to “act honestly and in good faith and exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances” (OBCA, 1994). Furthermore, the law assumes that a corporation (or its board) will have exercised due diligence in the acquisition of an asset and, therefore, knowingly (in the absence of fraud or deceit) will have taken on the liabilities and obligations associated with the asset (Nelson, 1994). This is the familiar “Buyer Beware”.Directors are liable for their decisions except “if the director relies in good faith up on financial statements of the corporation represented by an officer of the corporation or in a written report of the auditor, or a report of a lawyer, accountant, engineer, appraiser, or other person whose profession lends credibility to a statement made by any such person.”(OBCA, 1994).Hence the importance of reports prepared by professionals. They provide confirmation that the directors have exercised due diligence in the performance of their duties. For this reason these reports are referred to as due diligence studies."

Jan 1, 1996