CIM Magazine November 2007

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Provisional programs Programmes préliminaires

February/février November • novembre 2006 2007

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40th Annual Canadian Mineral Processors Operators’ Conference La 40e Conférence annuelle des minéralurgistes du Canada Maintenance/Engineering Mine Operators’ Conference Le Colloque sur l’ingénierie de maintenance et l’exploitation minière

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Editor-in-chief Heather Ednie hednie@cim.org Section Editor Andrea Nichiporuk anichiporuk@cim.org Technical Editor Joan Tomiuk Publisher CIM

Pride of the prairies he mining industry is an important economic contributor right across Canada. This holds true for our prairie provinces, home to a number of world-class operations spanning a variety of commodities. In Manitoba, CVRD Inco and HudBay Mining have long reaped the benefits of strong nickel and zinc orebodies, while Saskatchewan remains the world’s leading producer of uranium and potash.

This issue of CIM Magazine includes a special section on mining in Saskatchewan and Manitoba (p. 21). From major developments in uranium and potash, through a number of new projects in gold, diamonds, rare earth minerals, and more, the prairies are a mining hotbed as much as an agricultural one.

A mere glimpse at the activity in these provinces is presented inside these pages.

For more in-depth information, particularly on uranium and potash production, attend the CIM Conference and Exhibition next May in Edmonton. A technical session on potash operations will cover the most interesting developments, while a full-day workshop on uranium, hosted by Cameco experts, will be complimented by a technical session on uranium operations. There is a world of activity to learn about.

There will also be a forum on health and safety at the annual conference, well worth attending. Safety is a key focus for our industry, and must always remain a priority. The pride mining companies take in their safety performance is obvious in this issue. See the articles on pages 14 and 19 for heart-felt stories about the successes of some of our leading mine rescue teams.

Safety is a priority, because the mining industry is a close-knit community.

It’s the caring and open sharing across this industry that welcomes new employees, and contributes to the long, successful careers many enjoy.

T

Heather Ednie Editor-in-chief

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Printed in Canada

4 | CIM Magazine | Vol. 2, No. 7

CONTENTS CIM MAGAZINE | NOVEMBER 2007 NOVEMBRE

MINING IN SASKATCHEWAN AND MANITOBA

NEWS 7

Sustainability taking forefront at Queen’s Kinross helps bridge the gap between

22

mining industry is the catalyst for the renaissance of the province’s economy by P. Schwann

industry and society 8

New sorting system breathes life into talc mine An automated tool helps Sherritt

24

Dynatec Minerals by C. Hersey 11

Underground uranium milling—a peek into the future New process ‘ready to go’ when Haul roads: spend a penny, save a pound Making changes to benefit a mine’s bot-

28

Elk Valley Coal wins international mine rescue competition Hard work and dedication

32

New environmental course at UBC for mining engineering Course promotes eco-

top-notch services and manpower by D. Zlotnikov

PotashCorp expansion projects in Saskatchewan Big plans for fertilizer over the next few

36

Great Western to mine the periodic table’s best-kept secret A production deci-

years by H.E. Robinson

friendly mining practices by F. Solomon 16

2005 survey of evaluation practices in the mineral industry MES polled groups

38

sion to come in 2008 by D. Zlotnikov The timing is just right Victory Nickel’s Minago deposit could start up by 2010 by C. Hersey

40

Crowflight project under construction

worldwide by L.D. Smith 17 19

Getting the job done right An interview with Manroc area manager Tracy Tremblay by C. Hersey HVC team to the rescue A race to save a buried excavator operator

First Nations key to continued mining growth Partnering with aboriginal communities for

34

make for a winning team 15

Cameco looks to add one more to its production lineup Millennium deposit adds power to the major uranium producer by C. Hersey

tom line by M. Bouna Aly and R. Douglas 14

Tapping into Saskatchewan’s gold and diamond resources The development and expansion projects promise new life for the province by H.E. Robinson

opportunity knocks by D. Sarik 13

Saskatchewan’s mineral industry The

Underground mining set to begin next year

by D. Zlotnikov

43

Building up Rice Lake An update on new developments by D. Sarik

44

36 COLUMNS 53 54 55 56 58 60 62 64 66 67 68 70

CIM NEWS 71 72

McClean Lake update New expansion and mine developments underway by H. Ednie 73

LES MINES EN SASKATCHEWAN ET AU MANITOBA 45

46

47

48 49

50

51 52

L’industrie minérale de la Saskatchewan : catalyseur pour la renaissance de l’économie Les Premières Nations détiennent la clé de la croissance de l’industrie minière Tirer partie des ressources aurifères et diamantifères de la Saskatchewan : projets de développement et d’expansion Great Western prête à extraire le secret le mieux gardé du tableau périodique La croissance d’une compagnie de fertillisants : les projets d’expansion de PotashCorp en Saskatchewan Une autre mine pour Cameco Le moment est propice pour Victory Nickel Expansion à Rice Lake Le projet Crowflight en construction Mise à jour sur la mine McClean Lake

The Supply Side by J. Baird Student Life by D. Milstead Innovation Page by G. Winkel and T. Joseph Parlons-en par M. Brissette Des canadiens à l’étranger par J.-P. Rivard Canadians Abroad by J.-P. Rivard MAC Economic Commentary by P. Stothart Standards by G. Gosson HR Outlook by B. Kirby Engineering Exchange by H. Weldon Eye on Business by A. Gabrielson Mining Lore by A. Nichiporuk

74

CIM welcomes new members CIM MES hosts senior Chinese mining officials Obituaries Quebec Branch golf tournament a huge success Tournoi Géogolf 2007 CIM Distinguished Lecturers— an interview with David Lentz

Provisional programs • Programmes préliminaires 77

81

40th Annual Canadian Mineral Processors Operators’ Conference La 40e Conférence annuelle des minéralurgistes du Canada 2008 Maintenance Engineering/ Mine Operators’ Conference Le Colloque sur l’ingénierie de maintenance et l’exploitation minière

HISTORY 88 91 94

California gold—Part 2 by R.J. Cathro The evolution of shaft sinking systems—Part 3 by C. Graham and V. Evans History of metal casting— Part 3 by F. Habashi

TECHNICAL SECTION 98

This month’s contents

61 IN EVERY ISSUE 4 6

75 112 113

38

Editor’s Message President’s Notes Mot du Président Calendar Bookshop Professional Directory November 2007 | 5

president’s notes Mining is here to stay—time to reach out

Jim Popowich CIM President Président de l’ICM

This September, I had the opportunity to attend the 2007 Energy and Mines Ministers’ Conference and the inaugural Asia Pacific Mines and Minerals Conference, hosted by the Mining Association of British Columbia.

In addition to the conference sessions, the mining associations from across Canada had a joint session to discuss issues of common concern. The theme for the discussions centred on the three pillars of sustainable development—economic, environmental, and social. It is the latter, or the softer side of our resource business, that attracted a significant amount of attention. We had the opportunity to listen to numerous case studies that described the successes (and failures) of what is being done. As a general observation, I am encouraged by the progress being made in a lot of areas, particularly aboriginal and community involvement. I would suggest there is a general belief that “mining is here to stay—so how do we make it better?”

However, if we expect to do better in the long run, we have to address the broader issue of the public perception of our industry. I call this our soft underbelly. As an example, recent media coverage of mining incidents has made many individuals, communities, and politicians skeptical and perhaps less friendly to our extractive industries. In reality, the real story on safety is very different than that described in the media. Mining is one of Canada’s safest industries and we have to tell our story.

This leads to my second concern, where I believe the use and value of mineral and petroleum resources in society is not being taught broadly enough in our schools. There also needs to be a connection of the wealth generation from resource development and its contribution to our many social programs. We are currently very focused on our short-term need for skilled labour; however, over the longer term we need to focus on our K-12 grade school content. To meet this need, a number of associations have initiated excellent programs but we as an industry need to combine our collective efforts to really make “education” happen. CIM has volunteered to be a catalyst for bringing our efforts together. Over the next while, you will hear what is happening across Canada as we reach out to our teachers and students.

mot du président Les mines ne sont pas près de disparaître, il est temps de diversifier nos approches En septembre dernier, j’ai eu l’occasion de participer à la Conférence des ministres de l’Énergie et des Mines et au premier Asia Pacific Forum on Mines and Minerals tenu par la Mining Association of British Columbia. En plus des sessions des conférences, les associations minières du Canada ont tenu une session conjointe afin de discuter de leurs enjeux communs. Le thème des discussions était axé sur les trois piliers, économique, environnemental et social, du développement durable. Le pilier social, soit le volet « souple » de notre industrie de ressources, a attiré beaucoup d’attention. Nous avons eu la possibilité d’entendre raconter de nombreuses études de cas décrivant les succès (et les échecs) des pratiques actuelles. D’un point de vue général, je suis encouragé par les progrès effectués dans de nombreux domaines, surtout concernant l’implication des autochtones et des communautés. La croyance générale est que : « Les mines ne sont pas près de disparaître. Alors comment pouvons-nous améliorer la situation ? » Toutefois, si nous prévoyons faire mieux à long terme, nous devons traiter de la question plus générale de la perception de notre industrie par le public. Je crois que c’est notre talon d’Achille. Par exemple, la couverture médiatique récente concernant des incidents miniers a rendu plusieurs individus, communautés et politiciens sceptiques, et peut-être moins favorables, envers nos industries extractives. En fait, la véritable histoire de la sécurité est très différente de celle racontée par les médias.

L’exploitation minière est l’une des industries les plus sécuritaires au Canada et nous devons faire valoir notre point de vue.

Cela m’amène à ma seconde préoccupation, à savoir que les grandes lignes de l’utilisation et de la valeur des ressources minérales et pétrolières dans notre société ne sont pas assez enseignées dans nos écoles. Il doit aussi y avoir un lien entre la richesse générée par le développement des ressources et sa contribution à nos nombreux programmes sociaux. Actuellement, nous nous concentrons beaucoup sur le besoin de main-d’œuvre à court terme, toutefois, à long terme, nous devons nous concentrer sur le contenu des programmes scolaires de la maternelle au CÉGEP. Pour pallier ce besoin, de nombreuses associations ont initié d’excellents programmes, mais nous, en tant qu’industrie, devons combiner nos efforts pour vraiment « éduquer » la population. L’ICM s’est porté volontaire pour jouer ce rôle de catalyseur. Vous entendrez bientôt parler de ce qui se passe au Canada alors que nous tendrons la main aux enseignants et aux élèves.

6 | CIM Magazine | Vol. 2, No. 7

news Sustainability taking forefront at Queen’s

Achievements Impressive performance

A new teaching and research program at Queen’s University aims to facilitate the development of innovative approaches to help the competitive business realities of mining be in tune with the evolving values and expectations of society.

Kinross Gold Corporation is providing funding to establish the Kinross Professorship in Mining and Sustainability, through a commitment of $500,000 over the next five years, with additional funding to come from the Faculty of Applied Science at Queen’s. “The mining industry needs more engineering graduates with the skills to meet the challenge of responsible mining,� said Tye Burt, president and CEO, Kinross. “That includes the ability to understand the expectations and aspirations of communities where we work and to find win-win approaches that support business objectives while also making a positive net contribution to the long-term economic and social well-being of the community.�

R. Anthony Hodge has been appointed to the professorship. He is one of Canada’s leading authorities on sustainable development in mining, with professional experience as an academic, a consultant to industry, and an advisor to government. CIM

The Mining Association of Canada awarded Suncor Energy for their efforts in sustainability. The company was recognized for its stakeholder relations, community media, and crisis communications.

Suncor also received ‘best-in-class’ marks for their approach to climate change disclosure by the Carbon Disclosure Project.

As well, Dianne Zimmerman, Suncor’s senior manager, issue management and stakeholder engagement, was named to Calgary Inc Magazine’s Top 40 Calgarians under 40.

Ball awarded Founder and partner of Three-D Geoconsultants Dwight Ball received the 2007 Canadian Professional Geoscientist Award from the Canadian Council of Professional Geoscientists. Ball was chosen for his achievements and outstanding contribution to the development and practice of professional geoscience.

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news New sorting system breathes life into talc mine A new technology’s in town, one that separates the good from the bad, and in doing so has saved the life of at least one mining company. An optical ore sorting system, aptly named ‘Automated Ore Sorting,’ has been set up by Terra Vision at the Sherritt Dynatec Minerals Division mine site (historically known as Canada Talc). Talc was discovered on a farm in Madoc, Ontario, in the 1880s.

It first came into production in 1896, and, having gone through a few names and owners, has since mined over 800,000 tons of high-grade talc.

Without the help of this revolutionary sorter, the well-known mine may have faced closure.

The need for the optical ore sorter came about when Sherritt Dynatec Minerals’ time came to undergo a little construction. For a variety of reasons, their underground workings were shut down and their headframe needed to be rebuilt. Unfortunately, delivery of the new headframe took quite a bit longer than they had expected, and the mine found itself unable to provide for the mill: ore-less and empty-handed.

Luckily, Terra Vision to the rescue.

Under sub-contract, Terra Vision began sorting the waste. Old material, discarded as waste and deemed useless, is now being sorted over again. Ore is recovered and then sent to the mill, thus saving the mine from shutting down.

Before the sorter came along, everything was done by hand, and

by Carolyn Hersey the tonnages were obviously much too low, which is why Terra Vision was called in.

The system, which is containerized (for shipping purposes), was ordered on May 7. It was delivered to Quebec City

by CommoDaS GmbH on May 15, containerized by Terra Vision, and delivered to Madoc on May 22. Sorting began a week later. The technology is fairly simple. “Automated ore sorting is a complementary technology that applies a vari8 | CIM Magazine | Vol. 2, No. 7

ety of sensors, including cameras and/or conductivity, magnetic susceptibility, and dual energy X-ray transmission sensors, to control the mechanical separation of ore from gangue on an individual rock-by-rock basis. The system separates the rocks by diverting individual rocks with a bank of high-pressure air jets. The air jets are controlled by a high speed image/data processing unit coupled to sensors that are scanning the entire width of the chute.”

This means that the machine looks at each rock individually with a camera and makes a decision as to whether or not it meets the ore criteria. While some

systems sort based on texture, the system set up for Sherritt Dynatec sorts based on colour. These systems can be configured for applications ranging from precious gem sorting (+1 mm) up to coarsely crushed ore (-12 inch) with throughputs up to 350 tons an hour.

Terra Vision president Matthew Kowalczyk said that the setup process and optimization for the machine is fairly simple. Terra Vision has a contract to both supply and supervise the sorter. Training for the operators is minimal; once the system is set up for a permanent installation, operator intervention is limited to starting and

Ore and waste rock piles being produced by the optical ore sorter

news stopping the processing line and adjusting one or two parameters.

Parameters, alarms, and warnings are presented to the operators in a simple touch screen interface.

This automated ore sorting technology, though extremely beneficial, is actually quite a rarely heard-of concept in North America. Outside of the diamond industry, Sherritt Dynatec is using the first-ever optical ore sorter for minerals in Canada. The technology actually started in the recycling industry in Europe. While ore sorting comes in many forms, ranging from the hand-sorting of waste dumps by individuals to advanced statistical methods based on bulk sampling and chemical assays, the latter has proven to be the most useful and can be applied in various situations using various methods. The automated optical ore sorting equipment can be applicable to not only industrial mineral projects, but also to base metal and precious metal projects. In the case of mill feed pre-concentration, profits can be increased by separating it into high- grade, low-grade, and waste fractions. Environmental risks and costs can also be reduced by sending waste rock to the appropriately designed dumps.

For newer mines, ore sorting can result in a higher cash flow, which could be used to pay off the capital cost of the mill more quickly, said Kowalczyk. For older mines, sorting can “increase the profitability of their operations by only hauling or hoisting ore that is well above the economic cutoff to the processing centre.” In addition, said Kowalczyk, “not only are direct processing costs reduced, but data gathered during the sorting process, such as particle size and description of the composition of the sorter output, can be fed forward, in realtime, to mill operators so that downstream operations can be optimized.” It’s a win-win situation.

Like any process out there, there are of course improvements to be made. Kowalczyk said some of the screening and washing at this installa-

tion can be improved to increase the throughput to the machine. They are currently running at about 20 tons per hour, but with a few adjustments, could run up to 40 tons per hour (feed preparation currently limits the throughput).

Automated ore sorting has been around for over 15 years, and only now are we reaping its benefits here in North America. In the long run, the idea is to eventually integrate the

sorter into Sherritt Dynatec’s regular ore sorting process, and not just use it as a temporary solution. Ultimately, the system will ensure that they can constantly provide high-quality talc to the mill. For now though, dumps that were previously considered waste are currently the only source of ore for the mill. This technology allows them to sort their waste piles, send them to the mill, and most importantly, avoid shutdown. CIM

“ It’s the university’s new foreign language building.”

“Well, they seem to have chosen an appropriate site.”

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news Underground uranium milling A peek into the future Cameco Corporation, the world’s leading uranium producer, has investigated the possibility of underground milling of high-grade uranium ore.

Brainchild of Chuck Edwards, director, engineering and projects at Cameco, this innovative concept has been

by Debbie Sarik elaborated upon and studied. In January 2007, Edwards presented the design as well as technical details at the 39th Annual Canadian Mineral Processors Operators’ Conference in Ottawa.

The idea was conceived in 2000 when milling possibilities for Cigar Lake were being brainstormed.

Although it was too late in the project to implement at the Cigar Lake Mine,

d

interest in the proposal was keen. “I am quite confident that the next highgrade underground ore body will use this process,” Edwards said. Given the level of uranium exploration presently underway, there is optimism that such a discovery will be made.

This exploration is due to forecasted increases in future demand for uranium and its current high cost.

Globally, there is a trend towards the nuclear option because it is well positioned as an environmentally friendly energy source. Economically developing nations such as China and India are building nuclear reactors and other countries are making plans for future construction. Closer to home, the United States will likely develop new

mac facts

power plants within the next few years.

“A nuclear power plant produces virtually no CO2,” said Edwards and the renewed interest in nuclear that this has sparked “is referred to as the nuclear renaissance.”

Cameco predicts that new uranium deposits will need to be brought into production to satisfy the increase in demand. If the right type of ore body were to be found, Cameco would contemplate using underground milling.

“You want an underground high-grade mine,” Edwards stated. “To make sense going underground the equipment has to stay fairly small. You want a highgrade mine because the higher the grade, the smaller the equipment for the same production.”

Canada has a significant mineral processing industry, with 38 non-ferrous metal smelters and refineries operating in six provinces.

The industry’s $40 billion contribution to Canada’s gross annual domestic product includes approximately $10 billion in mining extraction and $30 billion in mineral processing and manufacturing.

November 2007 | 11

news To obtain a high-level understanding of the proposed underground milling method, it can be compared to conventional surface operation. The milling process currently employed at Cameco’s northern Saskatchewan mills includes six basic steps: grinding, leaching, solid/liquid separation, impurity removal, precipitation and drying, and tailings deposition. With underground milling, these steps would be performed below the surface, with the exception of impurity removal and precipitation and drying. These would remain above ground due to the size of required equipment.

small. Effluent could be further reduced if combined with Cameco’s membrane treatment of water. In fact, according to Edwards “we can potentially get to a very, very small amount of effluent discharged, and possibly no effluent discharged, in which case you have zero impact.”

As an added advantage, the financial aspect of such a process has an up side.

“You have major environmental benefits and they cost you less than nothing,” emphasized Edwards. This is because cost analysis performed at Cameco revealed that underground milling could offer sizeable capital and operational cost savOn the capital the treatment of ings. side, the reduction in the solid and liquid waste from the under- cost would result from construction ground milling process would offer lower expenditures. On the operational side, with the milling taking place As the conceptual process has been right at the site, ore transportation ironed out, pre-feasibility studies have costs would be reduced. Overall, posiidentified important benefits under- tive attributes of the process could be ground milling could have versus the advantageous for Cameco and further standard surface operation. In fact, their goal of producing clean energy both the environmental and the cost with the least possible environmental impact of the proposed method appear impact. favourable.

There are no known obstacles to Environmentally, the treatment of implementing the underground milling the solid and liquid waste from the process in a future mine. The technolunderground milling process would ogy and equipment required are offer significant benefits. Edwards already available. In addition, the proexplained that overall “there is a posed excavations for such an operamuch, much smaller environmental tion would be reasonably small and impact.” There would be three main therefore would not represent any areas of improvement. Firstly, visual additional concerns with regard to conimpact is lessened because of reduced struction and safety. surface operations. Secondly, the tailShould the right ore discovery be ings would be stored underground, made that would suit underground well isolated from water. Currently, milling, Edwards and his team are tailings are treated and stored on sur- ready to swing into action. At such a face. Edwards described the proposed time, feasibility studies would be underground disposition as “an conducted and permitting would extremely safe, environmentally need to be done. Basically, said benign method of storing the tail- Edwards, “the process is 100 per cent ings,” because the underground ready to go.” Once a site is identified, method would “isolate them more the exact process would be tailored from the water than the ore was to to the specific characteristics of the begin with.” Lastly, the liquid waste discovery. Until then, Edwards and would be minimized because the his team are anxiously awaiting equipment used would be relatively exploration developments. CIM

Environmentally,

significant benefits

12 | CIM Magazine | Vol. 2, No. 7

Movin’ on up With some 20 years’ experience in public service, international finance, and capital markets, William Majcher was appointed to Evolving Gold’s board of directors.

Clifton Farrell is the new vice president and COO of Blue Sky Uranium.

He brings 25 years’ experience in natural resources to the position.

The latest additions to NL Technologies' team are Heidi Levitt and Roger Farmer. Formerly vice president of sales and marketing at Levitt-Safety Ltd, Levitt is the company's new president. Farmer brings extensive experience with high-tech products to the position of vice president, engineering.

Douglas Whitehead has joined Inmet Mining's board of directors. He is the president and CEO of Finning International.

New position for former CIM president Yves Harvey, executive director of COREM, is the new president of the Québec Mining Association’s board.

Harvey served as the president of CIM in 1998-1999 and was president/executive director of SOQUEM from 1991 to 2005. He has also recently joined Stornoway’s board of directors.

news Haul roads: spend a penny, save a pound Hauling ore and waste rock typically accounts for about 60 per cent of the cost of obtaining ore from an open-pit mine—so just shaving a few percentage points off that cost can make a difference to the mine’s bottom line. In many cases, relatively low-cost changes in layout, structure, and operational procedures for haul roads can provide significant savings, which continue through the life of the mine. This is the old adage, “spend a penny, save a pound,” brought to life.

Another adage, “there is no free lunch,” also applies. Wise haul road management involves balancing several factors against each other. For many mines, productivity can be improved by understanding these balances and taking action based on that understanding. Many mine roads “just happen” without adequate planning and design, and the results are found in prematurely aged trucks, higher tire and fuel costs, and lower productivity.

Where traffic density allows, i.e. temporary roads, a one-lane road could be considered.

At the surface, one factor many mining companies miss has to do with small rises along the route. While a truck driver will downshift before a large hill, she or he may try to take a small rise without shifting, which can put unacceptable strain on the motor.

Downshifting has its own penalties in increased turnaround time, so good road layout minimizes small rises as well as the larger ones.

Wise haul road management involves

balancing several factors

Layout The question of balance is a big one in the layout of the road network. This includes the gradient and the width of the ramp used to haul ore and waste to the surface. A steep climb results in shorter haul distance and takes less space, so 10 to 12 per cent gradients are common.

However, a

by Mohamed Bouna Aly truck’s effiand Robert Douglas ciency declines significantly at steeper grades. Good layout considers engine power and the load weight in deciding on the grade of the road out of the mine.

The width of the road is dictated by the truck size and the traffic density.

For example in Quebec, this width is 1.5 times the width of the biggest truck in the fleet for one traffic lane, and three times for two traffic lanes.

against each other Another common design problem in haul roads has to do with water management. Failing to study drainage patterns ahead of time, and install culverts and other water-management measures, can mean washed-out road surfaces. This reduces vehicle efficiency and increases maintenance costs, so “pennies” invested in water management measures pay off in “pounds” over the life of the mine.

Structure The structure of the roadbed on the in-pit ramp is generally simple—just a layer of gravel to boost traction, laid on the bare rock. Good engineering can help determine the optimal thickness and gravel type. At the surface, if the route lies on soil rather than rock, there is more need to pay attention to the road bed so it does not deform under the weight of the trucks.

An area where some mine road designers miss the mark—with possibly dangerous results—has to do with curves in the road. Many curves are designed, with posted speed limits to

match, to reflect the need to prevent vehicles from skidding off the road due to inadequate side friction. However, these measures are sometimes not enough to deal with the danger of rollovers. As a result, a curve that is safe at a given speed regarding friction may still cause a truck, loaded high with ore, to tip.

Tight curves also result in outward centrifugal forces, compensated by side friction between tires and road surface.

Along with good surfacing materials, a good design should include banking (super-elevation) of the road through the curve.

Operations One of the biggest sources of improvement for haul roads lies in their operation.

A too rough or soft road surface increases rolling resistance, slowing vehicles, and causing unnecessary stress. This means that procedures must be established so grading is done at appropriate intervals. In many mines, grading is done on a schedule—“If it’s Tuesday, we must be grading road four” —rather than on an as-needed basis.

Mines in South Africa are among the world pioneers in regular checks of each road’s surface, with grading carried out only when needed to keep an acceptable surface on each part of the road.

Better training for shovel operators can help make sure that each truck is loaded as full as possible, but not beyond a limit imposed by the engine capacity, the roadbed surface, safety, and other factors. Training can also help make sure that grader operators deliver surfaces that are rough enough for good tire grip and smooth enough for vehicle efficiency. CIM About the Authors Mohamed Bouna Aly is a member of the mining practice of Golder Associates Ltd., based in Val-d’Or, Quebec. Robert Douglas specializes in haul road engineering and is a member of the transportation practice of Golder Associates Ltd., in Mississauga, Ontario.

November 2007 | 13

news Elk Valley Coal wins international mine rescue competition September 8 was a day to remember for the coaches and members of Elk Valley Coal’s Fording River F Shift mine rescue team. After two days and 25 hours of intense competition against 18 other mine rescue squads, F Shift became the first local team to win the North West Regional Mine Rescue Competition (NWRMRC) held in Fernie.

almost 20 years. Their team won the grueling provincial mine rescue competition in Williams Lake this past June before capturing first place in the NWRMRC. Team members include captain Rory Marshall, vice captain Jeff Scott, D’Arcy Lewis, Dennis Cooper, Doug McLean, Dean Borgen, Nick Hucik, and coordinator Brian Jones.

“We live what we preach…

December 1910, an explosion at the Bellevue Mine in Alberta killed 30 of 42 miners and trapped many more. With no mine rescue team of its own, the Bellevue Mine called upon the assistance of the Hosmer crew, who responded immediately. Lives were saved that day and ever since by the use of the more efficient breathing equipment.

The competitions renew and reinforce the bonds established by the first mine rescue teams.

More importantly, the areas represented are part of the disaster response plan designed to provide mutual assistance when and where it is required. As in 1910, the example set by the Hosmer teams has continued—borders are ignored when the need is there.

For captain Rory Marshall, the importance of mine rescue and the dedication of his team makes the competition especially meaningful. “We live what we preach,” he summarized. “We promote safety and live safety based on hard work, determination, and never letting up.

You’re working together with these guys and they’re the best; so if it ever does happen that I get into a spot, I know the best is coming to get me,” he added. “I am so proud of the team. It comes right down to helping people in need and saving lives— and for that we do it from the heart.”

The success of F Shift has been a long time coming for the team and its coaches. After years of commitment and hard work, the Dingrevilles’ have decided that it’s time to step back and retire from mine rescue.

“We’ve made so many friends over the years,” said Shelley. “Winning first place was definitely special for us, but it’s the fellowship and camaraderie of mine rescue that we’ll miss the most.”

For their team and colleagues at Elk Valley Coal, the feeling is mutual. CIM

We promote safety and live safety based on hard work, determination, and never letting up” “I can’t emphasize enough how much hard work, time, and energy the team members put in,” said team captain Rory Marshall. “To be the best in B.C. was just too good, but to take the Western Regionals—that’s the best in the West! It’s just indescribable.”

The western region consists of Manitoba, Saskatchewan, Alberta, British Columbia, Northwest Territories, Nunavut, Yukon, and the northwestern United States. Held every two years, the biennial event was first hosted by the NWRMRC and the City of Fernie in 1993. Based on the success of that inaugural competition, the City of Fernie and the NWRMRC have jointly hosted the event since then.

Eligibility to compete is restricted to the underground and surface mine rescue teams that have won their respective provincial or state competitions from the previous and/or current year.

The competition is designed to recognize, showcase, and celebrate the skills, dedication, and hard work of those involved in emergency response and mine rescue.

F Shift is a prime example of the commitment that goes into a winning team. The team’s two coaches, husband and wife Bruce and Shelley Dingreville, have been involved in mine rescue for 14 | CIM Magazine | Vol. 2, No. 7

“These guys put in an amazing effort, and I don’t mean just at the competition,” coach Bruce Dingreville commented. “Being part of this team means a huge commitment from them at home as well as at work. Up until the competition on Saturday, they were still cramming at home with tests Shelley and I had given them.”

The knowledge and skills demanded from the men and women on mine rescue teams are rooted in a proud, storied history that extends back almost 100 years.

Mine rescue techniques, training, and equipment in the early 1900s were limited and relatively ineffective. Then, in 1909, after a series of mine accidents in the province, the British Columbia Mines Act was rewritten. The new law required, among other things, that every coal mine be equipped with a self-contained oxygen breathing apparatus. It also mandated that central supply stations for the training of rescue corps be established and maintained by the government. This marked the beginning of formalized mine rescue in British Columbia.

Elk Valley’s first mine rescue station was established in 1910 at Hosmer where a team was soon trained in the use of the new mine rescue breathing apparatus. It wasn’t long before the Hosmer team was called to serve. In early

news New environmental course at UBC for mining engineering The Norman B. Keevil Institute of Mining Engineering at the University of British Columbia (UBC) has recently expanded its environmental curriculum to include a course entitled “Impacts of Metals on Aquatic Ecosystems and Human Health.” Fran Solomon, an environmental biologist with over 25 years of experience in environmental and natural resource agencies and university laboratories, developed and taught the course to mining engineering graduate students and fourth-year undergraduates during the 2007 spring term and is teaching the course again this term. She taught a three-day version of the course to mining industry professionals and mining engineering graduate students through the UBC Mining Studies Summer Institute in June. This short course is offered again at UBC Robson Square this November.

The purpose of the course is to encourage environmentally sensitive mining practice by educating current and future mining engineers and environmental professionals about the impacts of metals on fish, on other aquatic species, and on human health.

A related objective is to promote collaboration between engineers and scientists with respect to prospecting, design, development, operation, and closure of mines to reduce discharge of metals to the aquatic environment. The Keevil Mining Institute regards this issue as an important part

by Fran Solomon of the curriculum. The new course complements existing environmental courses that include “Mining and Society” and “Mining and the Environment.”

The course is an overview of metals and related “semi-metals” (aluminum, arsenic, cadmium, chromium, copper,

gold, lead, manganese, mercury, nickel, selenium, silver, tin, uranium, and zinc) that are mined or emitted as byproducts of mining. Specific topics are as follows: • Aquatic ecosystems and how mining activities discharge metals and acid rock drainage (ARD) into these ecosystems.

• Principles of metal toxicity, exposure pathways, and factors that affect metal toxicity.

• Acute and chronic effects of each contaminant on aquatic organisms and human health.

• Toxicity testing methods.

• Source control and remediation of metal contamination and ARD at a mine site.

• Case studies.

• Mining, fish, and First Nations issues.

The term-length course also includes a field trip to the former Britannia Beach Mine site and a “conference” at the University of British Columbia in which graduate students will present papers that they have written on topics relevant to the course. CIM

Achievements Leading corporate social responsibility Barrick Gold has been named to the Dow Jones Sustainability Index–North America. Barrick got a ‘best-in-class’ rating for its commitment to sustainability.

Also recognized for its commitment to sustainable development was AMEC. The company topped the 2007 Dow Jones Sustainability Index (World and European sustainability indices) in the support services sector. This is the fourth time AMEC has been named to the index.

The Center for Advanced Mineral and Metallurgical Processing (CAMP) of Montana Tech is seeking two Project Engineers. These positions provide engineering and project management support for all current and future projects at CAMP. Required qualifications include either an advanced degree in Metallurgical Engineering or a B.S. degree in Metallurgical Engineering with an advanced degree in Business Administration or Project Management.

Also required are ten years of industrial or manufacturing experience, with at least 5 of those years experience in project management. For more information and to apply for the above position visit www.mtech.edu/employment EEO/AA

About the Author Fran Solomon is an adjunct professor at UBC

November 2007 | 15

news

–G

P

R

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( * 4

2005 survey of evaluation practices in the mineral industry CIM Management and Economics Society

16 | CIM Magazine | Vol. 2, No. 7

studies are as significant as the absolute values of the discount rates

plotted. Note the lower discount rates applied to gold projects. CIM

Gold & Base Metal Discount Rates (Real) 18% 16% Discount Rate

The Management and Economics Society has undertaken a survey of industry practice in the evaluation of mineral projects. The survey questionnaire was distributed by e-mail to groups and organizations around the world. The responses, although a small ex show a consistency that sugnumber, gests that the survey has captured the views of the industry.

The 2005 survey is the third undertaken by MES. Surveys were also conducted in 1996 and 1997-99. The results shown in Tables 1 and 2 present data from the all three MES surveys. The surveys suggest that there are several consistent patterns between surveys: • Discount rates for gold projects are two to three per cent lower than for base metal projects.

• Discount rates are increased at higher levels of perceived risk.

• The increment in discount rates is increasing larger from scoping study to preliminary feasibility study to feasibility study to operating mines.

The survey results should be thought of as indicating a range of values, not as single average values. The ranges indicated in the tables are set to a spread of two per cent. The values shown for the ranges are the individual average values +/- 25 per cent of their standard deviation for gold and +/- 37 per cent of their standard deviation for base metals. The reader is cauby Lawrence Devon Smith tioned that the results are a snapshot of industry practice at a point in time as represented by a small sampling of the industry’s practitioners. These results should be viewed as indicative values.

The figure plots the average discount rate values for gold and base metals from the 2005 survey. These values are expressed in real terms. The increments or steps between the discount rates at the different levels of

Base Metals 2005

14% 12% 10% 8%

Gold 2005

6% 4% Scoping

Pre Feasibility

Feasibility

Production

Level of Development

Table 1 – Gold project discount rates—average values (three surveys) Level of Project Development

1996

1997-9

2005

All

Scoping

12.8%

12.1%

12.3%

12.4%

Pre-feasibility

11.7%

11.6%

10.1%

11.2%

1.2%

10.2%-12.2%

Feasibility

8.6%

8.8%

8.9%

8.8%

2.4%

7.8%-9.8%

Operating

4.3%

5.2%

7.7%

5.5%

3.2%

4.5%-6.5%

11

13

8

32

32

32

Respondents

Step

Range* 11.5%-13.5%

Table 2 – Base metal projects discount rates—average values (three surveys) Level of Project Development

1996

1997-9

2005

All

Scoping

15.6%

14.1%

12.6%

14.0%

Pre-feasibility

14.4%

13.7%

11.1%

13.0%

1.0%

12%-14%

Feasibility

11.8%

11.3%

10.1%

11.0%

2.0%

10%-12%

Operating

8.8%

7.6%

9.2%

8.5%

2.5%

7.5%-9.5%

12

12

10

34

34

34

Respondents

Step

Range* 13%-15%

news Getting the job done right does she deal with it? “You can’t change how people think, but you also can’t let everything get to you.”

In the time she’s been working, she has seen some resistance from men under her management, but not letting it affect her, and listening, is the key to her success. “Listening gains respect,” she said. If someone may have a better idea or solution to a problem, then open ears and consideration are her way of handling it.

This area manager prefers to work more collaborately as a team over the traditional ‘I’m the boss you’re the worker’ method.

Her job is more than technical; management means working with people, and the goal is to keep everyone happy while still getting the job done. She also notes that working for smaller companies is a great privilege.

With larger corporations, people tend to get lost in the crowd and become ‘one of the numbers.’

“In

“In smaller companies, you really get the chance to shine.”

— T. Tremblay

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Providing quality environmental and engineering services to mining projects worldwide

Knight

The participation of women in the minerals industry is on the rise, but at present, women are still greatly outnumbered throughout the industry.

However, as we move forward, more and more success stories emerge of great individuals carving out successful careers. Tracy Tremblay is one such example.

At 29 years old and already an area manager for mining contractor Manroc Developments Inc. at Copper Rand mine in Chibougamou, Quebec, Tracy Tremblay has reason to be proud. Born and raised in Sudbury, Ontario, mining was a constant subject as she grew up.

Tremblay didn’t dream of being a mining engineer as a child, but having been surrounded by it her whole life, she just “fell into it.”

She studied mining engineering at Laurentian University for four years and landed her first job in Denver in 2002. There she worked as a mining engineer in technical services with Maptek KRJA Systems. She worked her way up and in 2005, moved to her second job and became mine planner for Musselwhite Mine. From there she progressed to her present profession: area manager for Manroc at Copper Rand Mine in Chibougamou.

Working for Manroc Developments Inc., she started last year as an engineer and is now managing the division. “My responsibility is to ensure that everything is in place in order to get the job done right,” she said proudly. To boot, the

by Carolyn Hersey method her team is using, known as Alimak mining, is being used for the first time here in Quebec.

When she first started out, it was a challenge. She admits that there still remains some very old-school mentality about women in the mining industry. There’s a lot of initial skepticism about women being able to do the job well, but she said that it doesn’t take long to prove otherwise. How

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November 2007 | 17

news smaller companies, you really get the chance to shine.”

Of course, Tremblay does have hobbies outside the world of mining. She really enjoys being outdoors and, at the risk of sounding stereotypical, loves to shop. Not yet settled into the familywith-children scene, she devotes most of her time to her career, working long hours. When the time rolls around to start a family, though, she says her priorities will definitely change. “You make work what you want it to be.”

There are always options and ways to make more time for the people who truly matter—the ones you love.

Tremblay feels that she has found not just a job, but a life career, adding that she wants to stay in mining forever. Business is booming and although we’re not quite there yet, there are more and more women getting into the industry every day. She’s quick to point out that there’s not

Copper Rand is nestled in some beautiful countryside

more sexism in mining than in other fields, there are just a lot in more men.

Women need to open their minds a little more when it comes to career opportunities, expand their vocational horizons. Misconceptions about what mining really is must be addressed.

There’s more to mining than ‘living in the bush and digging a hole;’ there are professional opportunities abound.

Really, there’s no reason why women should still be a minority in the min-

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ing industry, especially in this day and age. Tracy Tremblay, along with many others, is a shining example of how traditional barriers can be broken.

So, what does the future hold for this humble area manager from Sudbury? Well, she’d love to stay in the management field but would like to maybe work with larger teams and, of course, she plans to continue to seek new challenges. Wherever the road takes her, I’m sure she’ll succeed. CIM

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HVC team to the rescue The Highland Valley Copper Mine Rescue Team demonstrated great prowess on September 18 when they were called to help save the life of an excavator operator involved in an accident at Graymont’s Pavilion quarry operations near Lillooet, British Columbia.

The operator was buried, along with his machine, at the Pavilion operations where he’d been working in an open pit when the high wall above him gave way.

The B.C. Mines Inspector called the Highland Valley Copper Mine Rescue Team, which was dispatched to Graymont at 3 p.m. At 11 p.m. that night, working together, the Graymont and Highland Valley rescue teams recovered the operator, who survived with minor injuries.

“All Teck Cominco employees join me in saluting the brave and diligent efforts of Gerry Wong, Dirk Werring, Peter Lapointe, John Brennan, Steve Hippisley, Neil Rideout, and Wes Martin,” said Pater Kukielski, executive vice president and COO of Teck Cominco, to Marketwire.

“This dramatic rescue underlines the effectiveness of our company’s safety preparations and the commitment across our industry to provide mutual support to operations and surrounding communities,” added Mike Filion, vice president, environment, health and safety, Teck Cominco. “We are proud that the Highland Valley Mine Rescue Team was able to successfully apply their training and expertise when called upon to assist.” CIM

Giving back Teaming up for a good cause Alcan teamed up with the Montreal Canadiens to raise money for their Children’s Foundation. In total, $115,000 was amassed through a silent and live auction, as well as a performance by the Arvida Research and Development Choir.

November 2007 | 19

JOB OFFER Agnico-Eagle Mines Limited, a growing international company, is focus on precious metal production with Canadian TECHNICAL SERVICES DIVISION exploitations and advanced projects and development opportunities in Canada, Mexico, The Technical Services, located in Cadillac, Abitibi-Témiscamingue, are a multidisciplinary team whose main functions are the evaluation of mining projects, the redaction of feasibility Finland and the United-States. studies and the technical assistance to mining operations and projects in development.

Agnico-Eagle Mines Ltd. is Constituted of numerous experienced professionals in different domains, the Technical Services presently looking for dynamic are working on national and international projects. and motivated candidates Presently, the Technical Services are pursuing the growth strategy of the company and are evaluating to join its Technical a variety of new advanced exploration projects. In order to do so, the Technical Services are in need of supplementary expertise and are recruiting candidates in the fields of geology, engineering and construction. In Services Division and order to respond to the increasing demand, the Technical Services are presently in recruitment for positions of: Exploration Division Senior Mining Engineer The senior mining engineer is working under the authority of the principal engineer. He’s in charge of the conception of mine production plans and of the cost’s estimations of the different projects. The senior mining engineer is also responsible of linking the various engineering services in order to assure the integration of all aspects of the final conception.

The candidate we are looking for owns a bachelor degree in mining engineering and is register at l’Ordre des Ingénieurs du Québec (OIQ) or register at a Canadian equivalent. A minimum experience of five (5) years in tasks of similar nature in either underground or open pit mining is required.

The sought after candidate shows autonomy, a well-develop sense of responsibilities, good analytical skills and have to be capable of harmonious teamwork. Good Knowledge of different computer programs such as Autocad, Excel, Word and Power Point, is also a requirement. Spoken and written French is an asset.

Rock Mechanic Engineer Within the Technical Services team, the rock mechanic engineer is under the principal engineer’s supervision and works with other members of the engineering department. In collaboration with his team, the rock mechanic engineer is in charge of the ground support design, the backfill methods and stopes dimensioning for underground mines. He will also have to perform slope stability analysis for open pit mines. His help is also required in other divisions for specific ground control problems.

The candidate we are looking for owns a bachelor degree in mining engineering or geology engineering and is register at l’Ordre des Ingénieurs du Québec (OIQ) or register at a Canadian equivalent. A minimum experience of five (5) years in rock mechanic engineering is also required.

The sought after candidate shows autonomy, a well-develop sense of responsibilities, good analytical skills and have to be capable of harmonious teamwork.

Good Knowledge of different computer programs such as Autocad, Excel, Word and Power Point, is also a requirement. Spoken and written French is an asset.

Junior Project Engineer Within the Technical Services team, the junior project engineer is under the principal engineer’s supervision and works with other members of the engineering department. In collaboration with his team, the junior project engineer is designing underground and surface infrastructures for different mining projects. He will also assist other engineers with the elaboration of mining methods, economic analysis and rock mechanic analysis.

The candidate we are looking for owns a bachelor degree in mining engineering or geology engineering and is register at l’Ordre des Ingénieurs du Québec (OIQ) or register at a Canadian equivalent.

The sought after candidate shows autonomy, a well-develop sense of responsibilities, good analytical skills and have to be capable of harmonious teamwork.

Good Knowledge of different computer programs such as Autocad, Excel, Word and Power Point, is also a requirement. Spoken and written French is an asset.

EXPLORATION DIVISION The Exploration Division, located in Val-d’Or, Abitibi-Témiscamingue, is responsible for the exploration of potential mines’ sites across Canada.

Project Geologist Under the responsibility of the exploration director, the project geologist is in charge of the preparation and execution of the exploration campaigns.

The preparation of exploration activities report for the province of Quebec, Ontario and for the Nunavut is also one of its responsibilities.

The candidate we are looking for has a minimum experience of two (2) years in exploration, is fully bilingual (written and spoken), is dynamic and possess a good team spirit.

Agnico-Eagle Mines recognize the importance of their employee’s participation by offering them a pleasing and stimulating work environment. Competitive remuneration and benefits are also added to this.

Interested applicants are requested to send their resume before the 14th of December 2007 and to indicate the foreseen position to:

Agnico-Eagle Mines - Regional Division To: Human Resources Service Ref: Foreseen position 20, ROUTE 395 CADILLAC, (QC) J0Y 1C0 FAX: (819)-759-3663 E-MAIL: recrutement@agnico-eagle.com Agnico-Eagle Mines ltd. subscribe to the employment equity program.

T

Saskatchewan’s mineral industry Catalyst for the renaissance of the province’s economy he statement that Saskatchewan is a global mining powerhouse does not come as a surprise to people watching the markets these days. While very few jurisdictions can claim to be the world’s leading producer in one commodity, Saskatchewan is the world’s leading producer in two – potash and uranium, accounting for approximately onethird of the total world production for both commodities.

With the growing global demand for both potash and uranium, safe and responsible mining will remain a foundation for Saskatchewan’s growth and prosperity for many years to come.

The Saskatchewan mining industry has a strong presence across the fabric of the province, and with the growth of the mining industry, there is mounting confidence in the province’s economic prospects. Our industry has a continuum of projects in the pipeline through the grassroots exploration, advanced exploration, development, and production stages, some of which are featured in this CIM issue.

The mining and agricultural sectors are now virtually tied for second in relation to contributions to the province’s gross domestic product (GDP) after oil and gas. Mining contributes over $2 billion annually in wages, goods, and services and supports over 22,000 jobs in over 50 communities across the province. It is also a creator of wealth through employment, business, and investment opportunities for many Saskatchewan residents.

by Pam Schwann, executive director, Saskatchewan Mining Association Inc.

With the head offices of industry leaders such as PotashCorp, Cameco, AREVA Resources Canada, and a growing stable of mineral exploration, mineral service sector companies, and research facilities, Saskatchewan is becoming recognized as a mining centre of excellence.

Safety and the environment The safety of people and protection of the environment are foundations of our industry. With respect to safety, our industry’s success in this area is reflected by consistently having significantly lower accident rate numbers than the provincial average. As examples of the Saskatchewan mining industry’s commitment to excellence in safety, the Mosaic Potash Esterhazy K1 Operation won the national John T. Ryan Trophy in the Select Mine Category this year, presented for the lowest injury frequency rating during 2006. Previous winners of the John T. Ryan Trophies have included AREVA’s Cluff Lake Mine and Cameco’s McArthur River 22 | CIM Magazine | Vol. 2, No. 7

Mine. At the 2007 Western Regional Mine Rescue Emergency Response Competition in Fernie BC, Saskatchewan mines again displayed their commitment to safety training and expertise as Mosaic Colonsay won the overall underground competition and Mosaic Belle Plaine won the fire fighting event. More recently, Mosaic Potash Colonsay won the competition at the Provincial Industrial Fire and Rescue Competition in Regina, SK. While the awards signify excellence among our industry peers, the best reward is that at the end of the day everyone goes home safely to their families.

The mining industry in Saskatchewan is also committed to being environmentally responsible to ensure protection of the environment for now and for future generations.

Decommissioning and reclamation of mines is a standard practice, with industry providing financial bonds to government to cover these costs. As a testament to the long-term commitment to the environment, the mining community in Saskatchewan worked with government to develop a perpetual care fund that will finance long-term monitoring of mine sites that have returned to the stewardship of the provincial government after decommissioning and reclamation of these sites by industry has been completed. This fund will be established by mine operators and administered by the province. A major milestone was the passing of the provincial government’s Reclaimed Industrial Sites Act in May 2006. The Act is expected to come into force in 2007 and form the basis of permanent institutional control over decommissioned mine sites on Crown land.

Exploration As the feedstock for the next generation of mines, exploration in Saskatchewan has been galvanized by increasing commodity prices and the province’s excellent geological potential for additional discoveries. Fueled by uranium price increases that shot from US$7/lb in 2001 to over US$130/lb early this summer, before settling down to under US$100/lb, interest in Saskatchewan’s highly prospective Athabasca Basin reached an all-time high in terms of exploration activity. For the second year in a row, Saskatchewan was the destination of choice for attracting venture capital for greenfield exploration. Saskatchewan now attracts 17 per cent of all Canadian mineral exploration investment compared to historical levels of 3 per cent. In 2007, it is forecast that over $270 million will be spent on exploration of Saskatchewan’s mineral resources including uranium, diamonds, gold, rare earth elements, copper, zinc, nickel, potash, and other industrial minerals.

This is a tenfold increase from five years ago. While uranium and diamond expenditures of $130 million and $90.5 million respectively will continue to capture most of the attention in 2007, gold and base metal exploration is on the upswing, with combined exploration expenditures of over $35 million. While this is good news, the industry and

governments cannot afford to be complacent with Saskatchewan’s leading status in attracting mineral investment. Other global competitors are hot on our heels, and already Australia and Kazakhstan have larger known uranium reserves than Saskatchewan.

Production In 2006, the value of mineral sales in Saskatchewan was $3.2 billion with over 25 mines producing a diversity of minerals including potash, uranium, coal, gold, salt, clay, silica sand, sodium sulphate, and, until recently, copper and zinc. Most recently, kaolin production has commenced, and we are very hopeful that diamonds will soon be added to the portfolio of Saskatchewan mineral production. In 2007, the value of Saskatchewan mineral sales is forecast to be a record $4 billion, largely as a result of very strong potash sales.

Saskatchewan’s abundant potash reserves ensure that the province will continue to be a dominant producer of potash well into the next century. With a 12 to 16 per cent increase in potash consumption anticipated in 2007 and with a further 3 per cent annual growth in demand through 2010, the world needs more potash. The three Saskatchewan potash producers, Potash Corporation of Saskatchewan, Mosaic Potash, and Agrium, have announced investments totaling over US$2 billion to expand production capacity at their respective Saskatchewan operations. Similarly, the demand for Saskatchewan uranium to help provide clean, non-greenhouse gas emitting energy is being fueled by the number of new and proposed nuclear power stations being built around the world. With 10 operating potash mines and the majority of the world’s excess capacity, and three producing uranium mines with others in the development stage, Saskatchewan is uniquely situated to meet future demands for both potash and uranium.

for growth of the sector, Saskatchewan will continue to prosper from its mineral wealth.

Mining is one of Saskatchewan’s oldest key economic sectors, with a proud history and an even more prosperous future.

Given the diversity of the province’s mineral wealth and the current market outlook, the mineral industry in Saskatchewan has the potential to be the catalyst for the renaissance of Saskatchewan’s economy. ✦

Our role A large part of the Saskatchewan Mining Association’s work relates to interaction with governments. In order to ensure that Saskatchewan’s ability to fully capitalize on its mineral potential is met, communication with government on issues and opportunities is critical. We’ve had success on such fronts as taxation reform and the delivery of training programs. Given the anticipated expansion in our industry we feel it is especially important to work with governments and the university and technical institutes to develop strategies to ensure that we successfully link training to employment opportunities that are being created by the mining sector.

Other important issues we will continue to work on collaboratively with government include improving the efficiency and timeliness of the existing regulatory permitting system; clarity surrounding government and industry obligations regarding the Duty to Consult aboriginal peoples; and ensuring a competitive investment environment. With a government that is responsive to creating a supportive environment November 2007 | 23

S

Tapping into Saskatchewan’s gold and diamond resources Development and expansion projects on the go

by H. Eve Robinson

askatchewan has attracted a lot of attention in minerals exploration and mine development in recent years. Overall, minerals exploration has increased more than tenfold in the last five years The rich geology of the province has some of the world’s largest diamond-bearing kimberlites that companies such as Shore Gold Incorporated have been exploring for potentially economic diamonds, while gold mines owned by Claude Resources Inc. have produced over 750,000 ounces of gold.

Development of the diamond industry in Saskatchewan and expansion projects in gold mines are two leading examples of Saskatchewan’s current growth in the minerals industry.

The province is divided into two different geological regions. In northern Saskatchewan, the Precambrian Shield is exposed and together with the Athabasca Basin, this zone is characterized by ancient sedimentary rocks, crystalline basement rocks, and sandstone. This region of the province holds deposits of economically important minerals such as gold and uranium, while also providing the right geological environment for the formation of diamond-bearing kimberlites. In southern Saskatchewan, the Phanerozoic Basin is comprised of younger sedimentary rocks that cover the crystalline basement rocks. Formed by deposits from shallow seas and lakes, this area hosts reserves of clay, potash, oil, natural gas, and coal.

Diamonds Shore Gold Inc. has been conducting diamond exploration in Saskatchewan since 1996.The province has the largest diamondiferous kimberlite field in the world, which was discovered in 1988. The company acquired key claims in 1995. Shore Gold’s Star Diamond Project now totals 363 claims that cover 139,500 hectares of land, located 60 kilometres east of Prince Albert, Saskatchewan.

try, noted, “We have had technical challenges we had to overcome because we have to drill through the overburden. We developed specialized methods in order to successfully extract samples from these kimberlites.”

Sampling the unique kimberlite is necessary to map the internal structure, estimate diamond grade (carats/tonne) and carat values (in US dollars/carat), and model potential revenue. “[Shore Gold] uses core drilling to define the geology within the kimberlite, large diameter holes to get the diamond distribution across the kimberlite, and bulk sampling to estimate diamond market prices,” said Du Plessis. Pattern core drilling into the kimberlite indicated that the diamond content was relatively homogenous. Large-diameter drilling showed a coarse diamond distribution, which suggests the potential for very large diamonds. An underground bulk sample of 45,000 tonnes produced 7,500 carats of diamonds with an average value of $135 per carat.

“The Star Diamond Project is very exciting, due to a number of factors,” explained Du Plessis. “First, the kimberlite provides over 200 million tonnes of potentially economic diamonds that could produce diamonds in Saskatchewan for many years.

Second, the diamonds we have [in the Star kimberlite] are of a very good quality. Our model diamond price of $135 per carat is more than double the world average for kimberlite, which is $63 per carat. Third, having a coarse diamond distribution means we can expect the production of very large diamonds, which are in high demand and are rare worldwide.”

The demand for diamonds has been increasing. Growing economies in countries such as China and India have widened the gap between supply and demand for these precious gems. Though the biggest diamond markets are currently the United States, Japan, and countries in Europe, economic growth in Asia will continue to drive the increasing demand for diamonds.

“It is prudent timing to be developing and planning [this project] now, assuming all our work is successful by 2011-2012. But the demand will still be bigger than what we will be able to put on the market and, as a result, there will likely be an increase in diamond prices as we move towards 2010,” said Du Plessis.

The Star kimberlite is approximately 88 metres thick and covers an area over 4 km2. The kimberlite is covered by as much as 90 metres of overburden, which consists of sand and mudstone.

Shore Gold is currently undergoing an advanced evaluation program that the company anticipates will be completed by the end of 2007. In a shaft running as deep as 250 metres, over 3,000 metres of lateral development at 235 metres in depth will be used to extract 10,000 to 15,000 tonnes of kimberlite.

This sample of potentially economic kimberlite will help define a mineral resource estimate for the Star kimberlite.

Pieter Du Plessis, the vice president of exploration at Shore Gold with almost 18 years of experience in the diamond indus-

Du Plessis anticipates this process moving quickly. “If the resource estimate is successful, we will then move into feasibil-

24 | CIM Magazine | Vol. 2, No. 7

ity studies and convert the resource to a reserve by the middle of 2008.” The advanced evaluation includes grade estimation, plant design, and preparation of an environmental impact assessment so that the company will be able to fast track the feasibility study immediately after.

“We are very excited by what we see here on the Prairies,” said Du Plessis. “We are looking forward to developing and producing mines for Saskatchewan.”

Gold Other companies in Saskatchewan’s minerals industry have been in operation for years and are currently going through expansion projects to increase production. Claude Resources owns and operates the Seabee gold mine, located 125 kilometres northeast of La Ronge, Saskatchewan. The mine has been in continuous production for the past 16 years, producing in excess of 750,000 ounces of gold.

The mine is a high-grade, narrow-vein, underground operation that processes an average of 600 metric tonnes of ore per day at a grade of eight grams per tonne. Changes to the milling capacity will make it possible for the company to expand their milling operation up to 1,000 tonnes per day, which is almost ShoreGoldad.qxd 10/19/07 10:35 AM Page 1 a 50 per cent increase in production.

The president and CEO of Claude Resources, Neil McMillan, has been with the company since 1995. He explained, “In the Seabee area, we have identified between three to four million tonnes of ore in varying resource and reserve categories that we believe is economic. Being able to process 1,000 tonnes of ore per day would mean we would be in production at a greatly expanded rate for in excess of 10 years.”

Until now, all of the feedstock for the mill came from the Seabee ore body. Claude Resources is currently developing three projects within trucking distances.These satellite ore bodies include Santoy 7, which is expected to be in production by the end of the year, Santoy 8, and Porky Lake, which will all complement Seabee Mine’s steady production.

“We expect the Seabee Mine to continue to produce indefinitely. We are very encouraged by our exploration results in the area and expect the operations to expand fairly significantly over the coming years and continue to operate at those expanded levels for a long time,” said McMillan.

The company’s success in exploration has made it possible to increase production in response to the rising price of gold and in order to reduce unit costs. Operating profit margins should increase considerably along with general

November 2007 | 25

revenue as production is increased. McMillan pointed out, “It’s purely business and economics, but not every company can [expand their operations] because they do not have the ore. We now have the feedstock to support such an expansion.”

One of the challenges facing this expansion project has been the increase in the cost of consumables such as fuel, energy, explosives, and steel. Also, increasing mill capacity to 1,000 tonnes per day means a larger winter resupply, which adds to inventory costs. The Seabee site is accessed by air (fly-in/fly-out) and by 66 kilometres of ice road in the winter. The site is resupplied for the entire year between January and March.

Another challenge has been the increased pressure in the mining business on the labour front. McMillan explained, “Across the country the increase of mining activity has put pressure on a scarce resource—experienced miners. In western Canada, this is an even bigger challenge because of competition from the oil sands. We are under cost pressures to pay more for regular staff.”

Because the Seabee Mine is a remote site, employees work either two weeks in with two weeks out, or four weeks in and two weeks out. This schedule attracts people who like to

come and work at a site as opposed to a community site with regular nine to five hours. McMillan said, “There are some advantages to working in a remote location. We strive to hire people from our impact community whenever we can and we work hard to treat our employees right; we pay competitively, we have a nice camp, and an outstanding reputation for food.”

There are challenges associated with development and expansion projects but companies remain optimistic about Saskatchewan’s resources. “We are being careful with the expansion,” said McMillan. “It’s going to be a continual expansion over the next three years and we are not rushing it. By [the time we reach completion], we might find additional high-grade reserves and continue our operating level beyond 1,000 tonnes per day. We are the biggest gold producers in Saskatchewan history. The previous largest mine produced 215,000 ounces of gold while we are now at 750,000 ounces and we believe we will continue to produce.”

McMillan continued,“We clearly demonstrated there is a significant potential for economic gold deposits in Saskatchewan. Hopefully it encourages others to come and spend money on exploration and development in the province.” ✦

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26 | CIM Magazine | Vol. 2, No. 7

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Cameco looks to add one more to its production lineup

by Carolyn Hersey

ameco Corporation has a new baby on the known as the way—otherwise Millennium Deposit. Millennium is a basement-hosted uranium deposit nestled 35 kilometres north of Key Lake in northern Saskatchewan and is currently in the feasibility phase. It sits on the Cree Extension exploration lease, which is a joint venture between Cameco, JCU, AREVA, and UEM (Cameco being the project manager). Drilling in 2000 led to the initial discovery of mineralization. The pre-feasibility study was completed in September 2006 and the feasibility study is expected to be complete in early 2008.

After a lengthy conversation with senior geotechnical engineer James Hatley, I now have a better idea about how Cameco and its partners plan to raise this new addition.

The sinking of two concrete-lined shafts (to depths of 755 and 630 metres) is anticipated, and the mine will consist of two main levels and five sublevels located at 20-metre vertical intervals. The shaft sinking is expected to begin in 2012 and with equipping will probably take about two and a half years. The mineralization is located in dry basement rock but the shafts traverse water-bearing sandstone. Blasthole stoping is the planned mining method.

Both cemented and uncemented aggregate backfill will be used to fill the stopes, while crushed development waste rock will be used for backfill. This aggregate will be delivered underground using one of two drop pipes located in the service shaft, although

An interesting aspect in the development of this project has been the use of 3D seismics

At the moment, facilities at the Millennium deposit are minimal. With only the Cree Extension exploration camp and a winter road in place, there’s plenty of work to keep the crew busy. The plan is to put in infrastructure, power, a water treatment plant, service shaft, ventilation shaft, administrative buildings, surface equipment shop, emergency generators, a concrete batch plant, and a water treatment facility, which will include monitoring ponds and an emergency water pond. They will also have a clean waste pad, an ore pad, and an acid-generating rock pad, which will, of course, be lined.

backskipping is also being investigated. Hatley added that “current plans are to build a 10,000 m3 per day conventional water treatment plant to support shaft sinking and lateral development. This plant may be supplemented later by a reverse osmosis plant capable of treating and discharging up to 80 per cent of the feed water. Remaining water will be treated by the conventional treatment plant. A supplemental emergency water treatment circuit capable of treating an additional 20,000 m3 per day of water is planned.”

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28 | CIM Magazine | Vol. 2, No. 7

Mel Project

Before any site construction begins (targeted for 2012), a 24 kilometre access road will be constructed in 2011. Power will be provided from the existing grid with a new power line running parallel along the access road to the mine. First ore development is expected to begin in 2016 with an annual production of six to seven million pounds U3O8. Because ore will not be milled onsite, they’ve been looking at their options. Their most likely choice will be Key Lake, about 45 kilometres from the site. They will probably ship about 500 tonnes daily in haulage. All in all, the Millennium deposit has an expected mine life of about eight years, and boasts an indicated resource of 37.5 million pounds, and inferred resources of 9.7 million pounds U3O8 based on the September 2006 feasibility study.

Astute planning and design An interesting aspect in the development of this project has been the use of 3D seismics: a geo-

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K K

C C L L

A

I I N N

/

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Ore E E

– –

Figure _c: M

at d 3D S sm Cube w h

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pout V P y A structure Fig. A. Modelled unconformity elevation-map-drill information only; B. Unconformity elevation map-interpreted from 3D seismic data; C. Migrated 3D seismic cube with . related to basement offset ; D. Stepout VSP reflectors potentially defining significant Post Athabasca sandstone and basement structures

Figure _c: M

at d 3D S sm Cube w h

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physical technique used to better determine where critical infrastructure (such as shaft locations) should be placed in order to avoid or mitigate geotechnical hazards. With the help of geophones, they are able to look at geotechnical structures to a depth of 600 to 700 metres below surface. This is important in case there are any adverse structures near the mine, or if there are any water-bearing structures in and around the two proposed shafts. This technology is not exactly a new one, but it is up-to-the-minute in its application to the Athabasca Basin.

The lead geophysicist on the project is Garnet Wood, who is pout V P y A in charge of the Millennium . Project Seismic Program. Thus far, they’ve acquired about 10 terabytes of raw seismic data in the program. The program included both surface and borehole seismic survey techniques, more specifically, a full 3D surface survey, a Stepout VSP (vertical seismic profiling) survey and two SideScan (multi azimuth single hole) surveys in the proposed shaft pilot holes. The objectives of this program were to image, in as much detail as possible, the unconformity, the major structures located in proximity of the deposit and the shaft pilot holes, and either the mineralization or the alteration halo located around the deposit.

The 3D surface survey was completed using a Swept Impact Vibsist® seismic source, supplied by Vibrometric Oy Cosma of Toronto, Ontario, and an I/O 3C digital acquisition sys30 | CIM Magazine | Vol. 2, No. 7

tem, provided by Kinetex Ltd. of Calgary, Alberta. Kinetex was responsible for all field logistics while Vibrometric Oy Cosma was responsible for all quality control, borehole seismic data acquisition, and for the processing and integration of all seismic data.

The initial 3D and stepout VSP results indicate that the survey was successful. As indicated in Figure A, significant topographical detail is evident in the current unconformity interpreted from the 3D dataset compared to the unconformity derived from drill results alone (Fig. B). The most significant result of the 3D seismic survey to date is that the Millennium deposit appears to sit on the eastern flank of an apparent north-south trending graben. As illustrated in Figure C, the unconformity and major Post Athabasca basement structures have also been imaged by the 3D surface seismic survey. A number of seismic reflectors, representing Post Athabasca sandstone structures, have also been imaged by the stepout VSP data (Fig. D). This information is being used to test the suitability of two shaft pilot holes for future shaft sinking, along with hydrological data and geotechnical data. The processing and interpretation of all the seismic data is ongoing.

Cameco and its joint venture partners believe this is setting a high standard for geotechnical investigations, and their faith

Cameco and its joint venture partners believe this is setting a high standard for geotechnical investigations in the technology is highly evident; of an $8 million feasibility budget, the Millennium Project Seismic Program consumes $4 million. That’s half of the budget, but for Cameco and its partners, it is very important for them to understand any geotechnical concerns involved in shaft sinking and mine development, which is why they’ve gone through considerable expense and effort to develop this technology for use in the Athabasca Basin.

The 3D seismics program isn’t the only priority on Cameco’s list. They remain focused on many social and environmental issues as well. In the aquatics field, baseline studies and source term characterization are being carried out, and they are also conducting ERA (Environmental Risk Assessment) pathways modelling. In hydrogeology, groundwater quantity and quality studies are being performed. With waste rock, both geotechnical and geochemical studies will be conducted, which will most likely carry on into 2009. Hatley added that other environmental aspects of note are “the discharge of treated mine effluent into Moon Lake, the likelihood for some acidgenerating waste rock in mine development, and the need for ore transport from mine to distant mill.” For both stakeholders and shareholders, there is a comprehensive project: the environmental impact statement which will also go on into 2009. In this study the project, at the feasibility engineering stage, will be described, possible environmental effects will be identified, and measures to mitigate any adverse effects will be proposed.

When considering new environmental initiatives, Lorne Schwartz, Cameco senior mmetallurgist, mentioned the following. Membrane filtration technology is being evaluated at current Cameco operating sites, and shows promise to improve effluent quality. Water produced from mine workings, such as that expected from Millennium, could be fed to a membrane filtration plant rather than directly to a conventional chemical treatment plant. Carefully selected membranes produce two streams: high-quality water with low dissolved solids that is suitable for release and a smaller concentrated stream that can be more efficiently treated by chemical means. A hybrid membrane and chemical system is anticipated to be the next generation of water treatment plant design for Cameco, representing a big step to reduce the loading of dissolved elements in effluent to the environment.

A few highlights of what’s been done so far, what’s underway, and what’s expected to be done in the near future for Cameco and its joint venture partners are: •

• • • • • • •

Completed shaft pilot hole drilling and packer testing for hydrogeology Completed surface geotechnical investigations for sighting of infrastructure Completed geotechnical evaluation of the mining plan and geotechnical testing of tailings Determining their new road route Conducting a workplace radiation health risk study Metallurgical test work (to be completed in the feasibility study) Mine ventilation modelling (to be completed in the feasibility study)

The list is growing and has miles yet to develop, but under Hatley’s supervision, the project is well underway. Millennium offers potential employment and wealth to the province, and 4/13/06 9:29 AM Page 1 isMarchConsulting a prime example of the responsibility that goes into turning rocks into money. ✦

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A

First Nations key to continued mining growth s the rash of new mining projects in Saskatchewan continues to challenge the provinces’ ability to keep up, relief may come from the very same remote areas in which mining developments most often end up.

Instead of trying to attract skilled labour in an evermore competitive market, companies would be wise to look to the local First Nations communities for both workers and contract service providers.

Dealing with the aboriginal bands is a different experience from what most mining firms are used to, but the rewards are well worth it, said vice president and general manager of Northern Resource Trucking Limited Partnership (NRT), Dave McIlmoyl. NRT, McIlmoyl said, has been providing the vast majority of trucking services to uranium producers AREVA Resources Canada and Cameco Corporation.

While Cameco agreed to the proposal, it wanted to see the benefits spread among more communities than just Lac La Ronge. To that end, the partners agreed to sell off 41 per cent of NRT, spreading out the ownership among 11 other First Nations and Métis partners. Today, Kitsaki retains 30 per cent of the company, Trimac owns 29 per cent, a company representing the three Dene First Nations holds 20 per cent, and seven other partners own 3 per cent each.

The company, with its newly diversified ownership, was on a much firmer footing, and better prepared to meet Cameco’s training program requirements. In fact, that program has been growing and is on the verge of becoming an added source of revenue for NRT.

“Today, the majority

by Dan Zlotnikov “We’re on our second five-year exclusive contract with AREVA and have finished a six-year contract, a five-year contract, and are now on our second five-year contract with Cameco,” he explained—quite an achievement for a company that started the journey in 1981 with six gravel trucks.

Originally, the company had “contracted the Saskatchewan Institute of Applied Science and Technology to come in with their trucks and their instructors and do the training,” McIlmoyl recalled. “Once the guys had a 1A license, we’d do in-cab training with them for a year or so.”

As McIlmoyl said, the company’s path to success began when the Key Lake Mining Corporation was looking for a freight hauler to service its uranium mine. Key Lake’s land lease stipulated that a portion of the benefits from the development go to the residents of Saskatchewan’s North. “Those happen to be about 85 per cent aboriginals.” Because of this stipulation, Key Lake sought out aboriginal-owned contractors and placed very specific requirements on them. Aboriginal-owned Kitsaki Development Corporation has been operating a small freight hauling company for two years, but could not provide the necessary capacity to meet Key Lake’s needs. At the mining company’s suggestion, Kitsaki approached the much larger—but at the time exclusively bulk haul—carrier firm, Trimac Transportation. The result was a new company, Northern Resource Trucking, 51 per cent owned by Kitsaki (which was at the time wholly owned by the Lac La Ronge Indian Band), and 49 per cent owned by Trimac.

Now, the company has its own government-certified school and instructors, and has expanded beyond trucks.

By 1986, the newborn company was hauling freight for Key Lake (soon to become part of Cameco) and AREVA (then Cogema Resources Inc.) but was struggling under the burden of the special requirements placed on it.

“Without that, you’d have the same thing here that you see everywhere else. All the trucking would be done by the Trimacs and the Westcans. Big mining corporations want to take the path of least risk, which means dealing with big companies.”

“We were required to offer benefits to the northern communities, to offer training programs to the northern residents,” said McIlmoyl. “This put us at a competitive disadvantage and we had a very difficult time competing for the contracts. So in 1994, we approached Cameco and asked for an exclusive, long-term contract for all their freight, and if we had that, we would be able to offer a better training program. To our surprise, Cameco agreed.”

However, this is less a case of supporting a minority group and more one of economic foresight. The working-age segment of the aboriginal population is the fastest growing in Canada. This means that in the next few years, more and more aboriginal kids will be looking for work.

32 | CIM Magazine | Vol. 2, No. 7

“We can offer Class 5 training [standard sedan licence], forklift, and school bus driver training, and we’re working on others as well,” said McIlmoyl. “We’re in the process of offering our training services to mining companies, First Nations bands, and local schools—not just our guys anymore. We’ve also had simulators from Northlands College to do heavy equipment training in our facility. We had a diamond drilling class here as well. We’re trying to turn our training program into a profit centre as well as training northern aboriginals for us. And it’s working fairly well.”

Would the company be doing so well if the Key Lake land lease didn’t require that benefits be passed on to the local communities? McIlmoyl doesn’t believe so.

“Back when I started with the Lac La Ronge Band, in 1980, most people were still engaged in traditional occupations like

hunting and fishing and trapping,” said McIlmoyl. “Today, the majority are part of the wage economy. This is because there just aren’t enough moose and fish left in northern Saskatchewan to support today’s population.”

But in return for these benefits, there are some unique aspects to take into consideration. Foremost is the need to help northern residents, in general, and First Nations persons, in particular, to adjust to the transition.

Such an influx of locally available labour is a potential boon to the mining companies, provided they take the necessary steps in advance. Cameco is an example of a company doing that very thing.

McIlmoyl, who has had some first-hand experience of this type of adjustment, explained.

“Since 1992,” said Cameco spokesperson Lyle Krahn, “we’ve invested more than $8 million in training and education programs for northern people.” The company works with government agencies and northern communities, to develop programs geared towards future employment in mining, but also offers in-house training, summer student employment,

“I grew up in a small community of about 200 and then moved to Regina to go to university and work. I felt some culture shock, and I was a white guy who spoke the language. I can just imagine how someone from the northern communities feels in this situation. Not only are they from a small community, but they are also a visible minority and they don’t speak the language. So take what I felt, times 100.”

To assist with the transition, NRT offers life skills training that covers everything from opening a bank account to renting an apartment to buying a car. Cameco, in — D. McIlmoyl turn, brings in elders from the nearby First Nations communities as part of its Site Elder program.

are part of the wage economy … because there just aren’t enough moose and fish left in northern Saskatchewan to support today’s population.” and scholarships. The company also sends representatives to the northern schools each year, to encourage the kids to stay in school and, hopefully, go to work for Cameco after graduation.

Krahn said Cameco is focused on getting more northern students into technical schools and universities, so that the company can increase the number of northern people in its technical, supervisory, and management positions. To that end, “Cameco has given $1 million to the University of Saskatchewan in support of science and math, to ready northern students for science and engineering at the post-secondary level.”

Aside from working to ensure its future labour pool, Cameco is trying to purchase services from northern ventures and partnerships (of which NRT is one example) whenever possible. “In the last decade, we have tripled the number of services we purchase from northern ventures,” said Krahn. “In 2006, we bought $160 million worth of services from northern businesses; that’s 77 per cent of the total services bought for our Saskatchewan operations.”

McIlmoyl highlighted the importance of the type of partnerships and economic development Cameco and NRT are encouraging. “Saskatchewan needs people in the workforce, and First Nations groups need jobs for the kids coming out of school so they’re not forced to go on welfare. It’s so important for community economic development and the First Nations groups to work together, and it helps the businesses in the province to be able to tap into that.”

“The elders spend four to six days a month on the site,” explained Krahn, “providing liaison and guidance. Part of the elder program is making people feel comfortable. We’re trying to make the transition as smooth as possible.”

McIlmoyl also pointed to the aboriginal-owned businesses as so-called “gateway” employers.

“When you’re just entering the wage economy, you might be uncomfortable being the only First Nations person working at a business. It’s a very different feeling if you’re one of 20 or so.”

As the development in northern Saskatchewan continues, we are likely to see more partnership businesses, simply because even the influx of First Nations labourers will be insufficient to meet the mining sector’s needs.

“We’re likely to see a decline in northern residents as a percentage of the total work force, even as their overall number grows,” said McIlmoyl. “There are about 50,000 people who are considered northern residents, and over half of those are under 16, and some are over 65. That doesn’t leave a very big labour pool.”

But while the skilled labour shortages are unavoidable, the inclusion of First Nations and other northern residents in the development process may serve to smooth out the process and provide more economic stability for this growing part of the province. ✦ November 2007 | 33

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Growth of a fertilizer company PotashCorp expansion projects in Saskatchewan otash Corporation of Saskatchewan Inc. (PotashCorp) is currently expanding the capacity of five sites in the province to raise total production capability from 10.7 million tonnes (in 2007) to 14.9 million tonnes by 2011.

by H. Eve Robinson

Potash is only found in 12 countries, but it is needed in almost every country in the world. PotashCorp produces potash, nitrogen, and phosphate products for use as fertilizer for agricultural crops, as a phosphate component of feed ingredients for animal nutrition, and for the production of industrial chemicals. Potash is the core of the company’s business.

Global demand for potash is increasing. Most of the industry is operating at or near full capacity so PotashCorp is expanding potash capacity to help meet that demand. PotashCorp currently holds 22 per cent of the world’s potash capacity and 75 per cent of the world’s excess capacity. The company is bringing back some idled capacity, as well as expanding its production capacity.

In the late 1980s, there was a decline in the demand for fertilizers with the collapse of the Soviet Union. PotashCorp responded by reducing production to match market demand and idled some capacity.

“In total,” said Moore, “[these expansion projects] will add more than four million tonnes of new or revitalized capacity in Saskatchewan and New Brunswick. The world market is about 50 million tonnes per year of potash requirements. The growth of the market is estimated at three to four per cent per year, which amounts to an expected 1.5 to 2 million tonnes of new production required in the market each year.

We are bringing up our production capabililty to keep up with that growth.”

The main factor contributing to the increasing global demand for potash is economic growth in countries like China and India. As people make more money, their diet tends to improve. This primarily involves increasing the amount of protein in their diet. More protein translates to

To meet the growing demand for potash, these expansion projects have encountered some challenges

The president of PCS Potash at PotashCorp, Garth Moore, has been in the potash industry for over 34 years. “The potash industry experienced an over-capacity situation for a decade,” Moore explained. “But the market has finally caught up to the world capacity, and the increasing demand for potash means we have had to bring back our idle capacity to meet the ongoing need.”

Expansion projects at the company’s Rocanville site were successfully completed in 2005 and at Allan in 2007. Idle capacity at PotashCorp’s Lanigan site is currently being reinstated and is expected to finish in the second quarter of 2008. This project will bring back 1.5 million tonnes of production capacity per year by refurbishing a mill, upgrading equipment and hoists, and improving compaction capability. The facilities at Cory will also add another 1.2 million tonnes of capacity by mid-2010, and enable the site to produce red potash; it currently produces only white potash products. All of these expansion projects involve getting more product from underground to the surface, increasing throughput at the mills, and maximizing production in the mine. However, the Patience Lake project is different. This site is a solution mine, which is expected to finish expansion by 2009. Solution mines use a warm brine injected below ground that works through the mine and comes up to be processed. In this case, the expan34 | CIM Magazine | Vol. 2, No. 7

sion project entails more pipeline work to bring back 360,000 tonnes of annual capacity.

more meat, which means more animal food requirements (or feed). This results in more agriculture, such as corn, and finally increases the demand for fertilizers. Soybean producers in Brazil are also expanding at a rapid rate and they are heavy users of potash.

“It’s a multi-faceted growth story,” explained Moore. “Many crops have potash requirements. While meeting this growing food demand is the primary driver of our business, the biofuel business is growing. In the US, ethanol plants use corn, while in Brazil, ethanol is produced from sugar cane. In both cases, these crops require a lot of potash per hectare.”

To meet the growing demand for potash, these expansion projects have encountered some challenges. One difficulty has been the availability of materials and manpower. Moore stated, “There are so many projects going on in western Canada it is very competitive to get steel and fabrication done. Costs are escalating because of the shortage of steel, and supplies are very expensive now compared to when we started the projects three to four years ago.”

Another challenge has been finding tradespeople. “We are competing with large projects in Alberta that utilize thousands of well-trained people in the industry,” said Moore. One

of the advantages in the way PotashCorp has staged their expansion projects in Saskatchewan has been that they are able to move crews and contractors from plant to plant as one project finishes and the next one begins.

“We have had the benefit of being able to move the same workforce around to overcome some of the labour shortages many industries are experiencing,” Moore explained.

With all the expansions at PotashCorp, the company is actively looking for new employees to join their company.

Many of the current employees started in the mid-1960s and they are beginning to retire. Many of the workforce are veterans, some with over 30 years of experience; others have less than five, and there is a large gap in between. With the changing demographics, everyone in the industry will need to attract and retain staff.

“In the mining industry, there is a growing shortage of people from all divisions, such as analysts, mining engineers, accountants, operators, mechanics, and electricians,” said Moore. “With all the expansions in Saskatchewan and new job opportunities becoming available, I would encourage more people to pursue the qualifications to meet the growing need for people in the mining business.”

Saskatchewan hosts a large flatland ore body that has the potential to produce potash for many years to come. Even by conservative estimates, the province could supply the world’s potash demand at current levels for hundreds of years yet.

With the increasing global demand, companies such as PotashCorp are preparing to meet these needs with some new approaches.

“There are some changes that we are utilizing in our new plants,” explained Moore. “We are using state-of-the-art technology to minimize our already low [greenhouse gas] emissions.”

The company was recently awarded the CICA (Canadian Institute of Chartered Accountants) honourable mention for Excellence in Sustainable Development Reporting. The company’s sustainability report presented information on each operating site, their management policies, governance systems, and environmental impacts.

“We have always viewed sustainability as being integral to the long-term success of our company,” said Moore. “We strive to be upfront and transparent in everything we do. It has continued to grow over the years and has developed as part of our culture.” ✦ November 2007 | 35

T

Great Western to mine the periodic table’s best-kept secret he first curious thing about rare earth elements (REEs) is that they’re actually neither.

The name was given to the ianthanide group of elements, some of which are more abundant than lead.

The challenge is not in finding these elements, said Gary Billingsley, chairman and CFO of Great Western Minerals Group, but in finding a deposit that is concentrated enough to be economical.

The second curious thing, Billingsley added, is how littleknown these elements are, especially considering the extensive impact they have on our everyday lives.

by Dan Zlotnikov

“There are new applications for REEs being developed almost every day,” said Billingsley. Existing applications already include catalytic converters (cerium), any electronic device that needs small, high-powered magnets (neodymium), and LCD monitors (yttrium, europium, and terbium), to name but a few. Billingsley, citing a report by BCC Consulting, predicted

“Right now, China is supplying over 90 per cent of the world’s REEs,” said Billingsley, “but as its economy develops it’s going to need more and more for its own use, so there’s a concern about how much it can increase its exports.”

Already, China has placed restrictions on the amounts of REEs being sold to external markets. The prediction is that Chinese supply will at best remain flat through 2010. Part of the reason for this, said Billingsley, is that there simply aren’t any new places for China to mine.

“The Chinese are extracting the REEs from tailings,” he explained. “The REEs are a side benefit of an iron mine at Bayan Obo.” The original design did not incorporate the extraction of REEs from the ore, so for the time being, the Chinese operation has a massive stockpile on the surface from which to extract the precious elements. However, the only other deposit is in the form of ionic clays in the south of China which, Billingsley said, have become “an environmental disaster” due to illegal mining operations. Understandably, the Chinese government is hesitant to open that area up for development, having just finished shutting down the illegal mines.

With politics suddenly playing a larger role in their supply chain, manufacturers are becoming concerned about where their rare earths are coming from, said Billingsley. Some are even going as far as investing in the mining operations, something they would normally be hesitant to do, due to the riskier nature of the mining and exploration business.

that the worldwide demand will grow from around 100,000 tonnes today to more than 150,000 tonnes by 2010. Most of that increase is expected to come from the hybrid and electric vehicle industry, primarily in the form of batteries and regenerative breaking systems.

But while demand is set to grow and prices for REEs and REOs (rare earth oxides, the industry standard form for trading in rare earths) are unlikely to fall, there is growing concern over the supply.

36 | CIM Magazine | Vol. 2, No. 7

“Japan, for example, is very concerned and is aggressively seeking additional sources for its REEs,” said Billingsley. But supply sources outside of China may fall far short of meeting the overall demand.

Great Western’s goal for Hoidas Lake was to be able to meet ten per cent of North America’s demand for Rare Earth Elements come 2010.

“The US is one of the biggest consumers of REEs. The US Geological Survey estimates it’s going to be a $1 billion

industry. So we asked ourselves, ‘can we supply one tenth of that?’” Based on that estimate, Billingsley explained, the drilling targeted only one zone at the Hoidas Lake site.

“We purposely set out a block to drill at close spacing, to come up with 1 to 1.5 million tonnes of reserves. That would give us a 10-year plus mine lifespan to do a pre-feasibility and feasibility study on.”

The current plan is to make a production decision in late 2008 and, if the decision is positive, proceed with permitting and construction to be completed around 2010.

Assuming all goes well, and Hoidas Lake enters operations on schedule, the mine will be providing 10,000 tonnes annually.

There are three other operations Billingsley names as the most likely to reach production around the same time. All three are in Australia: Lynas Corporation’s Mt. Weld, Arafura Resources’ Nolan’s Bore site, and Navigator Resources’ Cummins Range project. All four combined, however, are not likely to exceed 25,000 tonnes of annual production, leaving a supply gap of roughly the same amount. The shortfall promises hard times and stiff competition for the manufacturers using REEs, but sounds like excellent news for projects like Hoidas Lake.

Hoidas offers a few other advantages as well, Billingsley said.

The first is the site’s location in Saskatchewan.

“There is usually some radioactivity associated with rare earths,” said Billingsley, “so naturally, governments are reluctant to let people dig the stuff up. But Saskatchewan has gone through the whole radioactivity thing with uranium, so it’s a much more receptive environment.”

“The community of Fon Du Lac is very interested in potential spinoff businesses,” said Billingsley. “We’re looking into building our mill there, so that way the workers wouldn’t even need to leave the community.” Great Western has had extensive experience working with the native bands, he added, and is planning on continuing the relationship. The bands, on their side, have had lots of experience working with the mining industry, and can provide Hoidas with the qualified labour force and related services the mine will need.

Interestingly, the mine itself is not just a rare earth mine. “If we were outside of Saskatoon,” said Billingsley, “this would be a phosphate mine, pure and simple.” Because of the remoteness of the site, the smaller volume of REEs was deemed more economically feasible. But with the government promising to extend the permanent road into Fon Du Lac, bringing it to within 50 kilometres of the mine (right now the road ends at Stony Rapids, 130 kilometres from the site), and the town of Fon Du Lac quite interested in using the phosphates to manufacture fertilizer or fire retardant on-site, the project is well positioned to go on as planned. ✦

How do you unearth solutions without getting buried in detail? Ask Golder.

Another benefit is the so-called “basket” of REEs being extracted. The balance of the basket is very important, as the specific REEs range in price from the most common, cerium, at $20/kg all the way up to the rarest, lutetium, at $6,000/kg. “Hoidas surprised us with its unusually high concentrations of neodymium,” said Billingsley. As a result, July pricing for the Hoidas basket was around $17,000/tonne.

“Mountain Pass in California, which is mostly a cerium and lanthanum mine, would be valued at about half that.”

Despite the site’s remote location – roughly 800 kilometres north of Saskatoon – there is a good deal of infrastructure in place, due to the proximity of Uranium City and the aboriginal community of Fon Du Lac. The latter, Billingsley said, has expressed a great deal of interest in the project, not in small part due to the REEs environmental and green technology implications.

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www.golder.com/mining November6/27/07 2007 3:01:32 | 37 PM

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The timing is just right

by Carolyn Hersey

hat a great time for mining in Canada—a number of new mines are looking towards achieving initial production, including Victory Nickel Inc.’s Minago nickel deposit. The Minago property can be found in Manitoba’s Thompson nickel belt, approximately 225 kilometres south of Thompson, Manitoba. Initial exploration on the site was done by Amax Potash Limited about 40 years ago and since then has been worked by several companies, landing safely in the hands of Victory Nickel (previously Nuinsco Resources Limited) who owns 100 per cent of the mining lease on the property.

When current president of Victory Nickel Brian Robertson looked at the deposit four years ago, he envisioned an open pit mine rather than an underground operation. Conveniently located along a paved highway, which runs parallel to a power line, only 60 kilometres from the Omnitrax Canada railway line, paired with the current robust nickel price of nickel, Robertson said “the timing is just right!” Manitoba Provincial Highway 6 serves as a major transportation route north to Thompson, and the 230-kilovolt transmission line will provide power for the site. Because key components to the operating cost are electricity and fuel, and Manitoba boasts some of the electrical lowest costs in Canada, the location and facilities have proven to be pretty ideal for the Minago project.

In addition to excellent infrastructure, one of the big pluses for the project is the ability to produce an extremely high-grade nickel concentrate at Minago. For the scoping study completed last fall, a concentrate grading 27 per cent nickel, along with other payable metals, was produced.

One of the biggest benefits from producing such a high-grade concentrate is the marketing options it creates. While CVRD Inco’s metallurgical facility, located just to the north in Thompson, presents an obvious destination for the concentrate, the high grade offers the alternative of shipping to almost anywhere in the world.

Brian Robertson

In June 2006, at Victory Nickel’s request, “an independent review of the geology, exploration history, historical resource estimates, 38 | CIM Magazine | Vol. 2, No. 7

resource estimates, and the potential for discovery of additional nickel mineralization of the Minago property in central Manitoba was conducted by geologist P. J. Chornoby.” It was found that the resource is actually buried beneath a 10-metre surficial layer of overburden (peat, sands, and clay) followed by a 50-metre layer of limestone. Beneath the limestone and at the contact of the basement rocks is a layer of silica sand, and beneath the silica sand lay the granite and ultramafic rocks. The sand was actually deemed to have the potential as frac sand for use in the oil well developing industry. The ore body itself contains both serpentinite and peridotite ores, the serpentinite being closer to the surface. This is important to keep in mind “as metal recoveries and plant operating costs vary depending on the type of ore.”

The main, or Nose, deposit is large (49.1 million tonnes of measured and indicated resources and an additional 44.1 million tonnes inferred) and relatively low-grade (0.516 per cent nickel in measured and indicated and 0.528 per cent nickel for the inferred) ore and will be processed onsite by means of crushing, grinding, flotation, thickening, concentrate filtering, and drying process steps.Aside from the power line, highway, and railway line, other infrastructure needed to be constructed include: processing and maintenance facilities, a mill building to house the ore processing equipment, water and sewage facilities, warehouse, office, and dry facilities, and a service facility to maintain the mining equipment.

The technology being used is fairly straightforward; the only standout is their use of larger-than-normal haul trucks. The 240-ton trucks are not large by industry standards, but are fairly monumental in the ‘10,000-ton-per-day’ category.

Robertson added that one of the biggest and most important issues is water quality and flow. “It is anticipated that significant ground water quantities will be encountered in the overburden surrounding the proposed open pit. This water must be controlled to pre-

vent water entry into the mining operation. A hydrogeological assessment of the ground water potential will be undertaken to determine aquifer characteristics and potential dewatering scale and impacts. General hydrogeological information for this typical geology would indicate that groundwater is present in each of these units and would be expected to flow into the proposed open pit excavation. Testing will be used to predict the required well spacing and discharge volumes required to lower the water table around the open pit.”

“The Minago deposit has demonstrated potential as a large-tonnage, low-grade nickel sulphide deposit amenable to open pit than further to underground bulk tonnage mining methods,” states Minago’s Preliminary Economic Assessment. As an open pit mine, it should produce about 10,000 tonnes a day with an expected 13-year mine life, based on the known resource. Exploration potential remains at depth, where grades typically increase, and to the north, where limited historical drilling has intersected similar grades to those found in the Nose deposit. Currently in the midst of a bankable feasibility study (expected to be completed by mid-2008), Minago hopes to be operational by 2010. Robertson said that thus far, they’ve had the support of the surrounding communities and have been in touch with Norway House, Cross Lake, Grand Rapids, Moose Lake, and Snow Lake. Because mining is quite common in the area, people seem to be welcoming Minago (and its employment opportunities) with arms wide open. Despite the fact that it is generally a mining community, there don’t seem to be too many new mines in Manitoba, so for Robertson and his crew, this upcoming project is a very exciting one. With many facilities already existing and the current price of nickel, things seem to be falling into place. Like Robertson said, the timing is just right! ✦

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November 2007 | 39

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Crowflight project under construction rowflight Minerals Inc., the holder of over 700 square kilometres of exploration property in the Thompson Nickel belt, is in the process of moving from exploration to production.

by Dan Zlotnikov

The development in question is the Bucko Lake deposit, part of the TNB (Thompson Nickel Belt) South project. Located near the town of Wabowden, the site is just over 100 kilometres south of Thompson, Manitoba. Crowflight’s consultant, Micon International, completed an updated feasibility study early this year, and Crowflight hired Met-Chem Consulting of Montreal to complete the detailed engineering and assist in project management of the construction. In addition, Crowflight hired Boge and Boge of Winnipeg, Manitoba, to supplement the construction management team. The contract mining firm Dumas Contracting has begun underground activities on the site. The underground mining operation is expected to begin production in the second quarter of 2008.

never developed by the then-owner Falconbridge. The most likely reason for this was the deposit’s relatively small size. The mine is expected to produce just short of 5,700 tonnes of nickel a year, which is a very small amount indeed when compared to today’s global production of over 1.4 million tonnes.

Despite the project’s comparatively small size, things look promising. “We used a US$8/lb nickel price in our estimates,” said Hoffman, “so anything north of $8 per pound will be an improvement on the predicted economics of the project.”

Right now, nickel prices are floating around the US$14/lb, with predictions that growth in global demand will continue to outstrip the growth in supply. The site boasts excellent infrastructure, which should help keep the transportation costs down. Wabowden is a mere two kilometres away, and Highway 6, one of two main north-south routes in the province, is five kilometres farther. “There is also a rail spur 1.5 kilometres away,” added Hoffman.

Although new to Crowflight, Hoffman is particularly impressed with the depth of the Crowflight operating and The site has been known since the late 60s, says exploration team. “Our operations group, led by Paul Keller, Crowflight’s president and CEO Mike Hoffman, but was and our exploration group, led by Greg Collins, have been able to assemble an impressive Aerial view of the Bucko Mine site taken in May. Photo courtesy of Crowflight Minerals. and experienced team.

This depth of experience is unusual for a junior mining company at this stage,” said Hoffman.

The support of the local community of Wabowden and the First Nations community of Cross Lake has been very helpful. “It is very important to Crowflight that our local stakeholders benefit from our activities. Between ourselves and our contractors, we are committed to local training and hiring. It makes good business sense to use local people. We have updated the local communities on our plans and we plan to continue this practice through the mine development and operating life,” added Hoffman.

As part of Crowflight’s off-take agreement, the 40 | CIM Magazine | Vol. 2, No. 7

mining + engineering + construction

By entering production in such a short time, Crowflight stands to benefit from the lessened uncertainty of metal prices.

The near-term projections for nickel promise a strong demand and good prices, which Crowflight is ready to welcome and make good use of.

Hoffman cited the company’s estimate that at a US$10/lb nickel price, they’d be generating an annual cash flow of US$80 million.

“We have 250 million shares outstanding, trading around CDN$0.70,” said Hoffman. “Our market capitalization is around CDN$150 million. If you’re generating cash flow of $80 million, it’s pretty significant. Our shareholders should be pretty happy.”

17 per cent contained nickel concentrate will be shipped and further processed by Xstrata Nickel, who will then sell the metal on the open market.

One of the unusual things about this project is Crowflight’s decision to begin construction before the completion of the permitting process. “Many companies would wait to receive all their permits before beginning construction,” said Hoffman, “but we’re doing both concurrently. Given the great support we have received from both the federal and the Manitoba governments, we expect the remainder of the permitting process to go smoothly, enabling us to develop this resource to the benefit of local stakeholders while the metal market conditions remain strong.”

In a similar attempt to shorten the time to production, Crowflight has opted to go with used equipment to meet a large part of its needs. Hoffman explained that in today’s hot mining industry, there are frequently long delays in receiving new equipment. “With used equipment you accept some risk, but in some cases, you can save costs and accelerate construction,” he adds. “Our crews onsite have made sure things are properly rehabilitated and bought new equipment where it was necessary.”

42 | CIM Magazine | Vol. 2, No. 7

For this reason, Crowflight is considering expanding its annual production volume, to further capitalize on the high prices. “We completed a scoping study in July,” said Hoffman, “that showed that we could increase our daily throughput from 1,000 tonnes to 1,500 tonnes, and it would cost us CDN$8 million in capital investment. However, the additional capital investment will increase our annual cash flow by CDN$20 million.”

Of course, Hoffman acknowledged, such a move would decrease the lifespan of the mine, currently set at seven years.

“The belief of our geologists is that excellent potential exists to extend the lifespan through continued exploration.

Additional reserves are expected through the conversion of currently identified inferred resources and by exploring open extensions to mineralized trends.”

“Our first priority is to extend the lifespan of the mine,” said Hoffman. “If we can find even higher grade material at Bucko, that will also improve the economics, and there’s always the possibility of another stand-alone deposit along the belt.” Crowflight recently issued a press release detailing new inferred resource estimates within 20 kilometres of Bucko Lake at M11A, Halfway Lake, Bowden Lake, and Apex. In addition, there is an excellent exploration target at Bucko North, which is 400 metres from Bucko Lake. There is plenty of territory for Crowflight to explore at the site; the company’s holdings, Hoffman said, cover about 700 square kilometres of territory. “A lot of exploration still left to do.” ✦

O

Building up Rice Lake n August 23, 2006, San Gold Corporation poured its first gold bricks after purchasing and reopening the Rice Lake Mine in southeastern Manitoba. Now, just over a year later, ongoing exploration has led to many new developments.

by Debbie Sarik

The Rice Lake Mine had been closed since the end of 2001. At the end of 2003, with the belief that gold prices would rise, San Gold made an offer to purchase the mine. This was great news for the people of the small nearby town of Bissett. Presently, about 230 people are employed at the mine and San Gold takes pride in the fact that the workforce is mainly local and that a large portion of it is comprised of First Nation people.

San Gold took over the mine with the vision of maximizing costeffectiveness in two ways. Firstly, in order to maintain a constant feed to the mill, they intend to develop a number of mines in the Rice Lake area. Secondly, with some deposits relatively close to the surface and therefore having lower operational costs, overall production costs across the company should be averaged down.

Exploration in the area is anticipated to continue in accordance with the company’s strategy. Dale Ginn, CEO of San Gold, said they “expect continuous drilling in the Rice Lake Mine over the foreseeable future.”

With its location in the southeastern part of Manitoba, Rice Lake is in a belt of volcanic and igneous rock that stretches into Ontario. Ginn explained that the geology and age of the rock is the same in Rice Lake’s greenstone belt as it is in the gold-producing Red Lake belt in Ontario. Ginn estimated that 100 times more dollars have been spent on exploration in the Red Lake area than at Rice Lake, which suggests great potential for further discoveries at San Gold. Gold reserves have gone from 550,000 ounces to over 1,600,000 ounces in just over two years. Pleased with results to date, Ginn added “with high grade out in some of the new zones of the Rice Lake Mine itself, we anticipate adding significantly again to 1,600,000 ounces.”

drilling, which is ongoing at a higher level in the mine, at 4,800 feet, has resulted in the discovery of veins of varied grades. Initial testing indicates two, and possibly three, of these veins are high grade.

To the east, SG-1 was discovered in the 2004 to 2005 time frame. It is three kilometres east of the Rice Lake Mine and was developed in 2006. It has been drilled to about 1,200 feet.

SG-3, discovered towards the end of 2005, is a further three kilometres east of the mill. Exploration activities have resulted in 40 drill holes to date. SG-3 is hosted in the same structure as SG-1 and this body runs for at least 15 kilometres on the ground that San Gold controls. They will be working to identify the best location from which to mine reserves in the area.

To the west, two of the new discoveries are very close to the original mine. Cartwright, also drilled to about 1,200 feet, was discovered in the spring of 2006. This body is actually in the town of Bissett, one kilometre from Rice Lake. “It is part of the same unit that hosts the Rice Lake Mine so the characteristics

San Gold is a great example of how the mining

industry can be positive for a region

With the goal of mining in multiple locations, San Gold has explored four new sites to date. In addition to new development in the main Rice Lake Mine, recent discoveries have been made to the east and west at San Gold-1, San Gold-3, Cartwright, and Gabrielle.

Rice Lake has existed since 1932 and has produced 1.5 million ounces to date. “What San Gold has done is to focus on exploring and developing some of the high-grade areas or areas that we thought had potential to contain high grade,” explained Ginn. During Phase I, San Gold drilled below the lowest developed areas of the mine around the main veins, to extend them and possibly discover some new ones. Phase II

are exactly the same,” explained Ginn. Gabrielle is between Cartwright and Rice Lake and will be explored in the same way.

Currently, the Rice Lake Mine itself and SG-1 are in production. According to Ginn, the new estimated gold production for 2007 is 20,000 to 30,000 ounces, with a target of 75,000 to 80,000 for 2008. The Bissett mill currently has a capacity of 1,250 tonnes per day and San Gold is presently operating at 500 tonnes. By year end, they expect to be at 800 tonnes and over 1,000 tonnes by the end of 2008. With an 800 tonne per day operation, the expected cost per ounce would be roughly $345.

When asked about any environmental impact, Ginn explained that he believes San Gold is a great example of how the mining industry can be positive for a region. “At Rice Lake you’ve got local people benefiting from the operations’ very, very insignificant footprint, and the town and the environment and industry co-existing,” he said.

With recent developments, the atmosphere at the mine is quite upbeat. Ginn takes pride in the fact that exploration efforts at San Gold have led to a production phase that many smaller organizations never reach. “There’s just so few of us actually going into production, relative to the number of projects that are out there and the number of companies exploring,” said Ginn. Given the odds, being one of the few who succeed is quite an accomplishment. ✦ November 2007 | 43

T

McClean Lake update he McClean Lake area is a hub of development activity for Areva Resources, as the McClean Lake mill expansion is underway, and multiple mine deposit developments are being worked on.

by Heather Ednie

The first phase of the McClean Lake mill expansion is almost complete, bringing the mill’s capacity to 12 million pounds of U3O8 annually, from a current licensed capacity of eight million pounds.

Originally, the expansion was designed to handle ore slurry from the highgrade Cigar Lake mine, however, now, with the arrival of that ore delayed, the mill is adapting its operations to handle lower grade ore from the Sue E and B mines.

A new oxygen plant and ferric sulphate plant coming online will help improve efficiencies. The oxygen is used in the ferric sulphate plant and in the ore leaching process. The ferric sulphate is used as a reagent in the tailings neutralization and water treatment plant processes. This plant could provide the biggest payback when processing uranium ore with high levels of arsenic, as is the case for Sue

A ore and should be the case for Sue E and Midwest ores. In this event, the $10 million plant could save a quarter of a million dollars monthly.

The mill isn’t the only focus of expansion onsite at McClean Lake. In anticipation of future activity, 140 new rooms are being added to the permanent camp, doubling the existing capacity.

In this event, the $10 million plant could save

a quarter of a million dollars monthly.

On the mining side, a number of projects are ongoing that could provide future feed for the McClean Lake mill, including the Mining Equipment Development (MED) project, McClean underground, Sue E, Sue B, and the Caribou project, all of which are at different stages of development.

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Take a look at AREVA Resources.

The MED 2007 project ended in August, with significant progress made regarding extracting uranium ore from small ‘pocket’ deposits using an innovative jet boring technique from surface. Additional test work is required to bring the method to the industrial stage.

An underground mine is being planned near the entrance to the McClean Lake site, and was already considered in the original McClean Lake environmental assessment process. Production is targeted for 2011.

At AREVA Resources, our core business is mining. We are looking for experienced mine engineers, metallurgists, engineers and professionals to join our team.

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44 | CIM Magazine | Vol. 2, No. 7

Saskatoon: (306) 343-4500 careers@areva.ca www.ArevaResources.ca

At Sue E mine, ore removal will be completed by the end of the year. At the Sue B orebody, overburden has been stripped and stockpiled, and mining will begin when Sue E is completed and will continue through next fall.

The final project, the Caribou deposit, is moving forward with the regulatory process. Aims are to complete and submit the environmental assessment by early next year.

With so many projects in the pipeline, Areva is looking forward to a productive future. ✦

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L’industrie minérale de la Saskatchewan Catalyseur pour la renaissance de l’économie ue la Saskatchewan soit au premier plan dans le domaine de l’exploitation minière mondiale ne surprendra pas personne ! Elle produit environ le tiers de la production mondiale de potasse et d’uranium.

atteindre un record de 4 milliards de dollars, surtout en raison des ventes de potasse, dont les réserves permettront à la province d’être un producteur dominant jusqu’au siècle prochain. De plus, avec la demande pour une énergie sans production de gaz à effet de serre, la Saskatchewan est très bien placée pour satisfaire les demandes futures en uranium.

La sécurité et l’environnement

La sécurité des gens et la protection de l’environnement représentent les fondations de notre industrie. Notre succès se reflète dans des statistiques d’accidents inférieures à la moyenne provinciale et les nombreux prix gagnés. Cependant, le meilleur prix est que chacun rentre chez soi à la fin de la journée. La même attitude pousse l’industrie minière à respecter l’environnement pour les générations futures.

Notre rôle Les interactions avec les gouvernements forment une grande partie du travail de la Saskatchewan Mining Association. Nous avons eu des succès dans la réforme de la taxation et les programmes de formation; nous travaillons aussi à améliorer le système de demandes de permis et à clarifier les engagements quant à l’obligation de consulter les peuples autochtones. ✦

Exploration Pour alimenter la prochaine génération de mines, l’exploration en Saskatchewan a été revitalisée par la hausse des prix des produits de base et son excellent potentiel géologique. Pour ne donner qu’un exemple, le prix de l’uranium a grimpé de 7 $US/lb en 2001 à plus de 130 $US/lb cet été. La province attire cette année 17 % de tous les investissements canadiens en exploration minérale. En 2007, il se dépensera plus de 270 M$ en exploration, une augmentation d’un facteur de 10 par rapport à 2002. D’autres compétiteurs, l’Australie et le Kazakhstan, nous talonnent de près avec des réserves d’uranium plus vastes que celles de la Saskatchewan.

Production En 2006, la valeur des ventes de minéraux a atteint 3,2 milliards de dollars; plus de 25 mines produisent une vaste gamme de minéraux. Le kaolin vient de s’ajouter à la liste et les diamants pourraient bientôt faire partie du portfolio. En 2007, la valeur des ventes devrait November 2007 | 45

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Les Premières Nations détiennent la clé de la croissance de l’industrie minière e

nouveaux projets miniers mettent la Saskatchewan au défi de demeurer concurrentielle et la solution pourrait venir des régions éloignées, justement là où se bâtissent les nouveaux projets. Au lieu d’essayer d’attirer une main-d’œuvre qualifiée dans un marché de plus en plus compétitif, les compagnies auraient avantage à se tourner vers les communautés des Premières Nations pour les travailleurs.

« Les compagnies minières n’ont pas l’habitude de traiter avec les autochtones, mais les bénéfices en valent la peine », dit Dave McIlmoyl, vice-président et directeur général de Northern Resource Trucking Limited Partnership (NRT), dont la compagnie fournit la plupart des services de camionnage aux producteurs d’uranium.

« Nous voulons que nos programmes de formation soient rentables en plus de former les autochtones qui travailleront pour nous » –M. McIlmoyl

Une clause du bail de terrain de la compagnie Key Lake Mining Corporation exige qu’une portion des bénéfices aille aux résidents du nord de la Saskatchewan, à 85 % autochtone. Key Lake a suggéré à la compagnie autochtone Kitsaki Development Corporation de rencontrer Trimac Transportation; ensemble, ils ont formé Northern Resource Trucking (NRT). « Nous devions offrir des bénéfices et des programmes de formation aux communautés nordiques, ce qui nous plaçait en position de désavantage vis-à-vis la compétition », dit M. McIlmoyl. « Nous avons donc demandé à Cameco de nous accorder un contrat exclusif à long terme pour tout leur transport et, ainsi, nous pourrions offrir un meilleur programme de formation. » Ayant ratifié l’entente, Cameco voulait que d’autres communautés en bénéficient, non pas uniquement celle de Lac La Ronge. À cette fin, les partenaires ont vendu une partie de NRT, distribuant la copropriété parmi 11 autres partenaires des Premières Nations et des Métis.

Au début, la compagnie demandait au Saskatchewan Institute of Applied Science and Technology de faire la formation; elle possède maintenant sa propre école certifiée par le gouvernement. « Nous offrons maintenant des formations sur les voitures, les chariots élévateurs à fourches et les autobus scolaires. Nous prévoyons offrir nos services de formation aux compagnies minières, aux conseils de bande et aux écoles.

Nous avons déjà offert un cours sur le forage au diamant.

Nous voulons que nos programmes de formation soient rentables en plus de former les autochtones qui travailleront pour nous », dit M. McIlmoyl. De plus, la population autochtone est l’un des segments de la population qui croît le plus rapidement; au cours des prochaines années, de plus en plus de jeunes chercheront de l’emploi.

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Un tel influx de main-d’œuvre locale disponible est un véritable bienfait pour les compagnies minières, à la condition qu’elles s’y préparent. Le porte-parole de Cameco Corporation, Lyle Krahn, explique : « Depuis 1992, nous avons investi plus de 8 M$ en programmes de formation et d’éducation des peuples nordiques, travaillant avec les agences gouvernementales et les communautés nordiques. La compagnie envoie des représentants dans les écoles pour encourager les jeunes à poursuivre leurs études et à venir travailler pour Cameco. » La compagnie a aussi donné 1 M$ à l’Université de la Saskatchewan afin de préparer les étudiants venant du nord à des études post-secondaires en sciences et génie.

Cameco veut aussi acheter les services des entreprises nordiques. « Au cours de la dernière décennie, nous avons triplé les achats de services auprès de compagnies nordiques, dont NRT. En 2006, les achats se sont chiffrés à 160 M$ », dit M. Krahn.

Il faut cependant tenir compte de l’ajustement à la transition.

M. McIlmoyl explique : « J’ai grandi dans une petite communauté d’environ 200 personnes; lorsque je suis allé à l’université à Regina, j’ai subi un choc culturel même si j’étais blanc et que je parlais la langue. Pour quelqu’un venant des communautés nordiques, cela doit être 100 fois pire. » Pour aider à effectuer cette transition, NRT offre des formations générales : ouvrir un compte de banque, acheter une voiture. Cameco amène aussi des aînés des communautés avoisinantes sur le site; ces derniers y passent de 4 à 6 jours par mois afin d’aider les gens à faire la transition. Un premier emploi dans une entreprise autochtone sert aussi de « tremplin ». À mesure que se poursuit le développement du nord de la Saskatchewan, l’embauche d’autochtones ne suffira pas à combler les besoins en personnel. Selon M. McIlmoyl : « Environ 50 000 personnes résident dans le nord, dont la moitié a moins de 16 ans. Le réservoir de main-d’œuvre n’est donc pas si grand ». Même si les pénuries de main-d’œuvre sont inévitables, l’inclusion des Premières Nations dans le développement aidera à les atténuer et, en même temps, fournira une stabilité économique pour cette partie de la province en pleine expansion. ✦

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Tirer partie des ressources aurifères et diamantifères de la Saskatchewan Projets de développement et d’expansion ’exploration minérale en Saskatchewan a augmenté d’un facteur de 10 au cours des cinq dernières années. Cette province possède des gisements de kimberlite diamantifère parmi les plus riches au monde.

La province comporte deux régions géologiques. La zone Nord, comprenant le Bouclier précambrien et le Bassin de l’Athabasca, est caractérisée par d’anciennes roches sédimentaires, des roches cristallines et des grès; elle renferme des minéraux économiquement importants, tels l’or et l’uranium, tout en constituant un environnement propice à la formation de kimberlites diamantifères. La zone sud est composée de roches sédimentaires plus jeunes et renferme des réserves d’argile, de postasse, de pétrole, de gaz naturel et de charbon.

Diamants Shore Gold Inc. recherche des diamants en Saskatchewan depuis 1996. Cette compagnie possède 363 concessions minières couvrant 139 500 hectares situés 60 km à l’est de Prince Albert, Saskatchewan. La kimberlite Star a une épaisseur d’environ 88 m et elle couvre un secteur de plus de 4 km2, recouvert par des morts terrains atteignant 90 m.

Pieter Du Plessis, vice-président, exploration, signale que la compagnie a dû développer des méthodes spécialisées pour extraire les échantillons nécessaires à la cartographie de la structure interne et à l’estimation de la teneur (carats/tonne) et de la valeur (dollars US/carat). « Shore Gold prélève des carottes pour connaître la géologie; elle effectue des forages à plus grand diamètre pour préciser la distribution des diamants ainsi que de l’échantillonnage en vrac pour estimer le prix de ces diamants sur le marché », dit M. Du Plessis. Un échantillonnage en vrac de 45 000 tonnes a produit 7 500 carats de diamants d’une valeur moyenne de 135 $/carat, soit le double de la moyenne mondiale. « La kimberlite pourrait produire de très gros diamants de très bonne qualité pour plusieurs années. » Bien que la demande pour les diamants provienne surtout des États-Unis, du Japon et de la Communauté européenne, la croissance économique de l’Asie continuera à accroître la demande. « Le moment est propice pour ce projet et, en supposant que nous serons prêts vers 2011-2012, la demande sera encore plus grande que notre production; nous prévoyons donc une hausse des prix », dit M. Du Plessis.

Shore Gold effectue un programme de définition de la ressource qui comporte un puits de 250 m et plus de 3 000 m de développement latéral à une profondeur de 235 m pour

extraire de 10 000 à 15 000 tonnes de kimberlite. « Si l’estimation est réussie, nous convertirons la ressource en réserve vers le milieu de 2008.

L’évaluation avancée comprend l’estimation de la teneur, la conception de l’usine et la préparation de l’étude d’impact environnemental. »

L’or D’autres compagnies en Saskatchewan ont actuellement des projets d’augmenter leur production. Claude Resources exploite la mine d’or Seabee située à 125 km au nord-est de La Ronge. La mine, un gisement filonien souterrain, est en production continuelle depuis 16 ans; on y extrait en moyenne 600 tonnes métriques par jour à une teneur de 8 g/t. La compagnie prévoit accroître la production à 1 000 t/j.

Le président et chef de la direction Neil McMillan explique que la compagnie développe trois autres projets qui alimenteront l’usine de concentration : Santoy 7, qui devrait entrer en production d’ici la fin de l’année, Santoy 8 et Porky Lake.

M. McMillan souligne : « Ce ne sont pas toutes les compagnies qui peuvent agrandir, nous avons le minerai pour soutenir une expansion. » L’un des défis a été l’accroissement des coûts de combustible, des explosifs et de l’acier. De plus, une capacité accrue signifie des stocks plus élevés de minerai pour l’hiver, ajoutant à nos frais d’inventaire. Le site Seabee est accessible par avion et par une route de glace en hiver. Tout l’approvisionnement se fait entre janvier et mars.

Un autre défi est la main d’œuvre. « À travers tout le pays, l’accroissement de l’activité minière met de la pression sur une ressource rare : la main-d’œuvre qualifiée. Dans l’Ouest, c’est encore plus marquant en raison de la compétition des sables bitumineux. » En raison de l’éloignement de la mine, les employés travaillent selon des horaires semaines de travail / semaines de congé. « Nous nous efforçons d’embaucher des gens locaux, nous payons des salaires compétitifs, notre camp est bien et la nourriture est extraordinaire », dit M. McMillan. « Nous avons démontré qu’il existe un potentiel significatif pour des gisements d’or rentables en Saskatchewan. Nous espérons que cela encouragera d’autres compagnies à dépenser pour explorer, développer et exploiter dans cette province. » ✦ November 2007 | 47

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Great Western prête à extraire le secret le mieux gardé du tableau périodique l faut tout d’abord savoir que les éléments des terres rares (ÉTR) ne sont ni des terres ni rares. Le nom a été donné au groupe des lanthanides dont certains éléments sont plus abondants que le plomb. « Le défi n’est pas de les trouver mais de trouver un gisement assez concentré pour être rentable », dit Gary Billingsley, président et directeur financier de Great Western Minerals Group. Il est aussi surprenant de voir à quel point ces éléments sont inconnus étant donné leur grand impact sur notre vie quotidienne.

La conception initiale ne comportait pas l’extraction des ÉTR; ils sont donc extraits d’empilements en surface. Un seul autre gisement est toutefois devenu un « désastre environnemental » en raison des exploitations illégales. Le gouvernement hésite à rouvrir ce site qu’il vient tout juste de fermer.

Les applications existantes comprennent les convertisseurs catalytiques (cérium), les petits aimants puissants (néodyme) et les écrans ACL (yttrium, europium, terbium). Selon un rapport de BCC Consulting, la demande mondiale atteindra plus de 150 000 tonnes d’ici 2010, par rapport aux 100 000 tonnes actuelles, surtout pour des applications dans le domaine des véhicules hybrides et électriques.

Si tout va bien et que Hoidas Lake respecte son calendrier, la mine fournira 10 000 tonnes annuellement. Trois autres exploitations australiennes pourraient démarrer en même temps. Cependant, tous ces projets combinés ne dépasseraient pas une production annuelle de 25 000 tonnes, laissant un manque du même ordre de grandeur et annonçant une compétition serrée entre les utilisateurs d’ÉTR pour leur approvisionnement.

Même si la demande croît et que les prix ne chutent pas, l’approvisionnement pose des problèmes. « La Chine fournit actuellement plus de 90 % des ÉTR mondiaux, mais, à mesure que son économie se développe, elle en utilisera de plus en plus pour ses propres besoins », dit M. Billingsley. « Ce pays restreint déjà les quantités vendues aux marchés externes. Les ÉTR sont extraits des résidus miniers d’une mine de fer à Bayan Obo. »

L’objectif de Great Western pour le gisement Hoidas Lake est de satisfaire 10 % de la demande nord-américaine. Une décision sera prise en 2008. Si elle est positive, la demande de permis et la construction devraient être terminées en 2010.

« Il y a généralement de la radioactivité associée aux terres rares », dit M. Billingsley. « Les gouvernements hésitent parfois avant de permettre leur exploitation. La Saskatchewan a déjà de l’uranium, la question de la radioactivité a donc été traitée. » Un autre bénéfice est « l’ensemble » des ÉTR extraits. Les prix des ÉTR spécifiques varient du plus fréquent, le cérium, à 20 $/kg, au plus rare, le lutétium, à 6 000 $/kg. « Hoidas nous a surpris avec sa concentration élevée de néodyme », dit M. Billingsley.

Les prix en juillet pour l’ensemble était donc d’environ 17 000 $/tonne. « Les prix pour le minerai de Mountain Pass, en Californie, une mine de cérium et de lanthane, seraient la moitié de cette somme. » En raison de la proximité d’Uranium City et de la communauté autochtone de Fon Du Lac, des infrastructures sont déjà en place. « Cette communauté est très intéressée dans les retombées commerciales potentielles », dit M. Billingsley. « Nous pensons y installer notre concentrateur ». « Si nous étions à l’extérieur d’une grande ville, comme Saskatoon, cette mine serait une mine de phosphate. Étant donné l’éloignement du site, le volume moindre des ÉTR a été jugé plus économiquement rentable ». ✦

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La croissance d’une compagnie de fertilisants Les projets d’expansion de PotashCorp en Saskatchewan

otash Corporation of Saskatchewan Inc. (PotashCorp) augmente la capacité de production de cinq sites de la province afin de passer d’une production de 10,7 Mt (en 2007) à 14,9 Mt d’ici 2011. La demande mondiale croît et l’industrie produit déjà presque à plein régime.

La potasse se trouve seulement dans 12 pays, mais presque tous les pays en ont besoin. PotashCorp fabrique des produits de potasse, d’azote et de phosphate pour les cultures, l’alimentation animale et des produits chimiques industriels.

PotashCorp déteint actuellement près de 22 % de la capacité mondiale.

Vers le milieu des années 1980, la demande pour les fertilisants a diminué avec la chute de l’Union soviétique.

PotashCorp a alors réduit sa capacité de production afin de maintenir les prix. Le président de PCS PotashCorp, Garth Moore, explique : « L’industrie de la potasse se trouvait en situation de surcapacité durant plusieurs années; les marchés ont cependant rattrapé la capacité mondiale et cela signifie que nous devrons retrouver notre capacité de satisfaire la demande actuelle. »

une trentaine d’années de service, se dirigeant vers la retraite, ou d’employés ayant environ cinq années d’expérience. Tous ressentent ce creux.

En Saskatchewan, le gisement de potasse est plat et vaste et il a le potentiel de fournir de la potasse pour des années à venir; la demande mondiale actuelle peut être satisfaite pour des centaines d’années. Avec l’augmentation de la demande mondiale, des compagnies telles que PotashCorp se préparent par de nouvelles approches. « Nous utilisons des technologies de pointe afin de minimiser nos émissions, déjà faibles, de gaz à effet de serre », explique M. Moore.

La compagnie a récemment reçu une mention honorable de l’Institut canadien des comptables agréés dans le cadre des Concours des meilleurs rapports d’entreprise de l’ICCA. « Nous avons toujours considéré le développement durable comme une partie importante de notre compagnie », dit M. Moore. « Nous nous efforçons à être francs et transparents dans tout ce que nous entreprenons; cela fait partie de notre culture. » ✦ Expansion à Lanigan

Certains projets d’expansion sont terminés (Rocanville et Allan) et l’expansion à Lanigan sera terminée l’an prochain, ajoutant 1,5 Mt par année. Les installations de Cory ajouteront aussi 1,2 Mt d’ici le milieu de 2010 et permettront au site de produire de la potasse rouge. L’expansion à Patience Lake est différente. C’est une mine à extraction par dissolution, demandant donc plus de tuyauterie pour accroître la production. « Au total, ces projets augmenteront la capacité de production de la Saskatchewan d’environ 4,5 Mt/an dans un marché mondial d’environ 50 Mt/an. La croissance annuelle des marchés est estimée à 1,5 Mt. Nous ajustons donc notre capacité à cette croissance », dit M. Moore.

L’un des facteurs de la croissance mondiale de la demande est le développement économique de la Chine et de l’Inde. Ayant plus d’argent, les gens se nourrissent mieux et augmentent la quantité de protéines dans leur alimentation, généralement sous forme de viande. Cela signifie plus de fertilisant pour les cultures servant à l’alimentation animale. « L’utilisation des biocarburants progresse aussi rapidement. Aux États-Unis, les usines d’éthanol utilisent le maïs, alors qu’au Brésil, on utilise la canne à sucre; ces deux cultures demandent beaucoup de potasse par hectare cultivé », explique M. Moore.

Cependant, les défis sont nombreux. « Ces projets d’expansion ont besoin de matériaux et de main-d’œuvre », poursuit-il. La main-d’œuvre actuelle est composée de gens ayant November 2007 | 49

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Une autre mine pour Cameco ameco Corporation a du nouveau, le gisement Millennium, un gisement d’uranium situé dans le socle, à 35 kilomètres au nord de Key Lake en Saskatchewan. Des forages en 2006 ont conduit à cette découverte et l’étude de pré-faisabilité a été effectuée la même année. L’étude de faisabilité devrait être terminée au début de 2008.

L’ingénieur principal en géotechnique James Hatley nous explique ce qui est planifié.

Les installations sont actuellement minimales; seul le camp d’exploration Cree Extension et une route d’hiver sont en place. En plus de toutes les infrastructures habituelles, des sites d’entreposage seront préparés pour le minerai et les stériles. Deux puits sont planifiés (à des profondeurs de 755 m et de 630 m); la mine comprendra deux niveaux principaux et cinq sous-niveaux.

Les chantiers seront remblayés par des agrégats cimentés et non cimentés. M. Hatley précise : « une usine de traitement d’eau de 3 000 m3/jour soutiendra le fonçage du puits, prévu pour 2012, et le développement latéral. »

de deux compagnies géophysiques. L’information a été traitée en Finlande.

Cameco et ses partenaires de co-entreprise misent sur la technologie géotechnique. Leur confiance est évidente car le programme sismique coûte 4 millions de dollars du budget de 8 millions de dollars pour l’étude de faisabilité. La compréhension des enjeux géotechniques est très importante, ce qui explique les efforts dans le bassin de l’Athabasca.

Les enjeux environnementaux et sociaux sont aussi prioritaires pour Cameco. Étant donné que le site Millenium est sujet à des droits fonciers issus des traités, la compagnie rencontre régulièrement les Premières Nations de English River.

Pour l’eau, on effectue des évaluations environnementales de référence, des caractérisations de l’eau de source et des études de la qualité de l’eau souterraine. Les études géotechniques et géochimiques de la roche se poursuivront sans doute jusqu’en 2009. M. Hatley ajoute que les autres aspects environnementaux étudiés seront « la décharge de l’effluent minier traité dans le lac Moon, le potentiel de générer du drainage minier acide lors du développement de la mine et le transport du minerai entre la mine et l’usine de traitement. »

Avant le début de toute construction, on construira la Il reste beaucoup à faire, incluant l’évaluation de la radiation route et amènera l’électricité. Le développement devrait sur la santé, mais le projet commence bien. Millenium offre débuter en 2016 avec une production annuelle de un potentiel d’emplois et de prospérité pour la province et 6 300 000 livres de U3O8. Le minerai ne sera pas traité sur représente un bon exemple de la responsabilité intrinsèque à le site; le scénario le plus probable est le transport de l’exploitation d’une mine. ✦ 570 tonnes de minerai par jour réparties entre Key Lake (50 %) et une ou plusieurs autres usines du nord. La durée de vie e moment présent est vraiment propice pour les mines au Canada : plusieurs prévue pour le gisement nouveaux gisements entreront en production, dont le gisement de nickel Millennium est de huit ans, avec des réserves indiquées de Minago de Victory Nickel Inc., situé dans la ceinture de nickel Thompson.

37,5 millions de livres et des L’exploration initiale a été effectuée par Amax Potash Limited il y a environ ressources inférées de 9,7 mil40 ans; de nombreuses compagnies y ont travaillé depuis et la propriété lions de livres de U3O8. appartient maintenant à Victory Nickel (anciennement Nuinsco Resources Limited).

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Le moment est propice

Planification et conception astucieuses

Un aspect intéressant du développement du projet est l’utilisation de sismique 3D, un outil géophysique qui aidera à déterminer l’emplacement des infrastructures critiques, telles que les puits.

Le géophysicien principal du projet est Garnet Wood. Environ 10 terabytes de données brutes ont été colligées, en provenance 50 | CIM Magazine | Vol. 2, No. 7

Cette mine souterraine est avantageusement située le long d’une route pavée, d’une ligne de transport d’énergie de 230 kV et à seulement 60 kilomètres d’une voie de chemin de fer. Ces conditions, jumelées au prix robuste du nickel, ont poussé Brian Robertson, le président de Victory Nickel, à dire que « Le moment est propice ! » En plus d’avoir d’excellentes infrastructures, la compagnie peut produire un concentré de nickel à très haute teneur. Dans le cadre de l’étude de délimitation, la compagnie a produit un concentré de 27 % de Ni en plus d’autres métaux. Bien que l’installation de CVRD Inco soit proche, la teneur élevée permet d’expédier le concentré presque n’importe où au monde.

En juin 2006, à la demande de Victory Nickel, le géologue P.J. Chornoby a effectué une revue indépendante de tous les aspects de la propriété Minago. « La ressource

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Expansion à Rice Lake an Gold Corporation a coulé ses premières briques d’or le 23 août 2006, après avoir acheté et réouvert la mine Rice Lake dans le sud-est du Manitoba.

La mine était fermée depuis 2001. Ce sont de bonnes nouvelles pour les gens de Bissett; environ 230 personnes travaillent à la mine, principalement des autochtones.

San Gold voulait développer plusieurs mines dans le secteur pour un approvisionnement constant à l’usine de concentration et abaisser le coût moyen de production.

Dale Ginn, président et chef de la direction de San Gold, mentionne qu’ils effectueront des forages continuels dans un avenir rapproché. La géologie et l’âge de la roche de la ceinture de roches vertes de Rice Lake sont les mêmes que celles de la ceinture aurifère de Red Lake en Ontario. M. Ginn estime que les dépenses dans le secteur de Red Lake sont 100 fois supérieures à celles du secteur de Rice Lake, suggérant un grand potentiel de découvertes d’or, si l’on y met le prix. Les réserves sont passées de 550 000 onces à plus de 1 600 000 onces en un peu plus de deux ans. Avec les nouvelles zones à haute teneur dans la mine, on prévoit dépasser ces réserves.

l’exploration et le développement des secteurs à haute teneur ou potentiellement à haute teneur. Des forages autour des veines existantes ont permis de découvrir de nouvelles veines à diverses teneurs dont deux ou trois à haute teneur.

SG-1 a été découvert en 2004 et développé en 2006. SG-3, découvert à la fin de 2005, est situé à 3 kilomètres de l’usine de concentration, dans la même structure que SG-1, laquelle se prolongerait pour au moins 15 kilomètres.

A l’ouest, le gisement Cartwright, découvert au printemps 2006, se trouve dans la ville de Bissett et dans la même unité que Rice Lake. Le gisement Gabrielle se situe entre Cartwright et Rice Lake.

Rice Lake et SG-1 sont actuellement en production. Selon M. Ginn, la production d’or pour 2007 est de 20 000 à 30 000 onces et l’objectif pour 2008 est de 75 000 à 80 000 onces.

L’usine de concentration a une capacité de 1 250 t/j mais elle ne fonctionne actuellement qu’à 500 tonnes. À la fin de l’année, on devrait atteindre 800 t/j et plus de 1 000 t/j à la fin de 2008. À 800 t/j, le coût de production serait d’environ 345 $ l’once.

La mine Rice Lake existe depuis 1932 et, à ce jour, elle a produit 1,5 million d’onces d’or. San Gold se concentre sur

Interrogé sur les impacts environnementaux, M. Ginn explique que San Gold est un bel exemple d’un effet positif de l’industrie minière dans une région. Il est fier du fait que les efforts d’exploration ont conduit à une production que plusieurs plus petites organisations n’atteignent jamais. ✦

est située sous 10 m de morts terrains et 50 m de calcaire.

Une couche de sable de silice se trouve sous le calcaire, au contact du socle. Ce sable pourrait servir en tant que sable de fractionnement pour les puits de pétrole. Le gisement proprement dit contient des minerais de serpentinite près de la surface et de péridotite. Ce fait est important car la récupération des métaux et les coûts d’exploitation sont fonction du type de minerai. »

Le gisement principal – Nose – possède 49,1 Mt de ressources mesurées et indiquées à 0,516 % de Ni et 44,1 Mt de ressources inférées à 0,528 % de Ni; le minerai sera traité sur le site. Il reste à construire l’usine de traitement, des installations sanitaires et des entrepôts. Les processus seront relativement standards; seuls les camions de 240 tonnes sont gros pour une exploitation de 10 000 t/j. La durée de vie prévue est de 13 ans.

Forage à Minago

M. Robertson ajoute : « L’enjeu le plus important sera la qualité et le débit de l’eau. Des quantités significatives d’eau proviendront des morts terrains et elles devront être contrôlées. Une évaluation hydrogéologique déterminera les caractéristiques de l’aquifère et l’échelle d’assèchement.

Des essais serviront à déterminer l’espacement des puits de pompage requis pour abaisser la nappe phréatique. » Minago espère pouvoir entrer en production d’ici 2010.

M. Robertson signale avoir le soutien des communautés avoisinantes. Étant donné que la région connaît bien l’industrie minière, la compagnie (et ses possibilités d’emploi) est accueillie à bras ouverts. Comme le dit M. Robertson : « Le moment est propice ! » ✦ November 2007 | 51

C M

Le projet Crowflight en construction rowflight Minerals Inc. passera bientôt d’explorateur à producteur en ce qui concerne le gisement Bucko Lake, situé à un peu plus de 100 kilomètres au sud-ouest de Thompson. Micon International a terminé l’étude de faisabilité et a embauché Dumas Contracting pour la construction. La mine souterraine devrait démarrer au deuxième trimestre de 2008.

Connu depuis la fin des années 1950, le site n’a pas été développé par Falconbridge qui le détenait alors, probablement en raison de sa petite taille, signale le président et chef de la direction de Crowflight Mike Hoffman. En effet, la mine devrait produire annuellement environ 5 700 t de nickel—très peu par rapport à la production mondiale actuelle de plus de 1,4 Mt. Le nickel produit sera vendu à Xstrata Nickel. « Nos estimations sont effectuées sur une base de 8 $US/lb et le prix actuel avoisine 14 $US/lb. Le site est à proximité d’un village, d’une route nationale et d’une ligne de chemin de fer secondaire », dit M. Hoffman.

Crowflight a décidé de commencer la construction avant l’obtention de tous les permis. M. Hoffman signale que la compagnie a reçu de bons appuis des divers gouvernements. Cette manière de faire raccourcira le délai de temps avant le début de la production. La décision d’acheter des équipements usagés aidera aussi.

Avec des délais plus courts, Crowflight bénéficiera des prévisions à court terme concernant les prix des métaux. À 10 $US/lb, la compagnie générera un encaissement annuel de 80 M$US. « Nous avons 250 millions d’actions en circulation et notre capitalisation boursière est d’environ 150 M$C. Nos actionnaires devraient être passablement contents », dit M. Hoffman. « Une étude démontre que nous pourrions accroître notre production annuelle à 1 500 tonnes; cela demanderait des investissements, mais augmenterait notre encaissement de 20 M$C. » Évidemment, cela diminuerait la durée de vie de la mine, estimée à sept ans. « Notre priorité est d’accroître la durée de vie de la mine par de l’expansion, en convertissant nos ressources inférées en ressources indiquées, en découvrant des teneurs plus élevées ou un autre gisement à proximité. Il reste beaucoup d’exploration à faire », conclut-il. ✦

Mise à jour sur la mine McClean Lake cClean Lake est une région en pleine effervescence pour la société Areva Resources qui a décidé d’agrandir ses installations minières pour y exploiter de multiples gisements.

La première phase des travaux d’agrandissement est presque terminée et portera la production annuelle de U3O8 de huit millions de livres à douze millions de livres. À l’origine, la modernisation des installations visait à traiter le minerai à forte teneur provenant de la mine Cigar Lake.

Cependant, en raison de retards de livraison, la mine a décidé de traiter le minerai à plus faible teneur en provenance des mines Sue E et Sue B.

En outre, deux nouvelles usines, l’une d’oxygène et l’autre de sulfate ferrique, permettront d’augmenter l’efficacité. L’usine de sulfate ferrique, d’une valeur de dix millions de dollars, rapportera vraisemblablement des économies mensuelles de l’ordre de deux cent cinquante mille dollars lorsqu’elle traitera le minerai d’uranium à forte teneur en arsenic comme celui que l’on trouve à la mine Sue A et comme celui que l’on devrait trouver à la mine Sue E.

52 | CIM Magazine | Vol. 2, No. 7

Par ailleurs, un certain nombre d’autres projets devrait générer de l’activité pour la mine de McClean Lake; mentionnons le projet MED (développement de matériel minier), le projet d’exploitation d’une mine souterraine près du site McClean Lake et, enfin, le projet Caribou.

Le projet MED 2007 a permis de réaliser d’importantes percées au chapitre de l’extraction du minerai d’uranium dans de petits gisements en ayant recours à une nouvelle technique de forage par jet en surface. Toutefois, d’autres essais devront être effectués avant que l’industrie ne puisse avoir recours à cette technique novatrice. À proximité de l’entrée du site McClean Lake, on prévoit amorcer l’exploitation d’une mine souterraine en 2011. Ce projet avait été pris en considération au moment de l’étude originale des retombées sur l’environnement autour de McClean Lake.

Quant au dernier projet, le projet Caribou, il est actuellement examiné par les organismes de réglementation compétents.

Avec autant de projets en marche, l’avenir s’annonce plutôt prometteur pour Areva. ✦

the supply side

Canadian mining suppliers contribute abundantly to innovation in mining ways that are not mining-specific.

Further, mining supply firms are expected to carry out much of the commercialization of new technologies, products, and services developed in Canada for mining. Virtually nothing is known of their commercialization capacity.

A page for and about the supply side of the Canadian mining industry

tion). The remaining questions focused on the fields of research, relationships, and the use of patents and other types of intellectual property protection.

The survey, which is deemed to be representative of the more than 230 firms that are ‘regular’ members of CAMESE, reveals that the association represents firms employing about 11,600 people who serve the mining industry.

Among these are about 1,500 who “work in Canada on the development of new products and technologies for the mining industry, from pure research to production engineering.”

Another 1,000 individuals “work on market research, marketing, and selling of products and technologies to be introduced in the future or introduced within the last two years.”

A total of 68 per cent of the respondents have obtained patents or intellectual property registrations. CAMESE member companies are about equally interested in exploration, extraction, and processing, with lesser interest in smelting. The type of research is heavily centred on machines or devices (products), less on processes, and even less on new compositions of matter.

With respect to programs and relationships, SR&ED is dominant, followed

by IRAP, followed again by agreements with companies, universities, and research institutes.

The report, entitled “Innovation and Commercialization Characteristics of CAMESE Member Mining Supply Firms,” is available at http:// www.camese.org/InnovationSurveyFin alReport.pdf. CIM

We want to ensure as much

supplier participation and benefit as possible Discussions among industry, associations, universities, and government have resulted in a project to form the Canadian Mining Innovation Council (CMIC). With leadership from Natural Resources Canada, the federal, provincial, and territorial ministers of mines endorsed the project at their annual conference in Whistler, British Columbia, on September 24, 2007.

The council will be a consortium of industry, academic, and government leaders whose purpose is to strengthen the competitiveness of the Canadian mining industry by increasing mining research, innovation and

by Jon Baird commercialization across Canada. Those interested in innovation in mining will soon hear more about this initiative.

The CMIC exercise has shown that while information exists on people working in innovation in the exploration and mining fields in universities, research centres, and mining companies, statistics on these activities among mining supply firms are not available, since they are gathered in

New government policy in science and technology promises to open the possibility of expanding the networks of centres of excellence to additional sectors. So far, mining has not been accepted for this level of government support. In a new round of applications, we need to be able to show that suppliers are indeed an integral part of the mining innovation chain, active in R&D and commercialization. In this manner, we want to ensure as much supplier participation and benefit as possible.

Thus, CAMESE decided to undertake a survey that would attempt to characterize the innovation and commercialization capabilities of Canadian mining suppliers. The survey was carried out in collaboration with CAMESE member Gowling Lafleur Henderson LLP, a leading Canadian law firm, and Val Cottrill, a partner in the firm who is a mining engineer, lawyer, and patent agent.

An email message with the two-page, nine-question survey was sent to CAMESE member firms on June 20, 2007. The first few questions asked for the numbers of employees engaged in serving the mining industry, those involved in innovation, and those in marketing and selling (commercializa-

About the Author Jon Baird is managing director for CAMESE

November 2007 | 53

student life Experiencing camp life In January of this year, I packed my rucksack and boarded a Dash 8 airplane headed towards the James Bay Lowlands of northern Ontario. We were heading to a mine site that will be the first of its kind in the province of Ontario. Located approximately 90 kilometres west of the coastal First Nation community of Attawapiskat, the De Beers Canada Victor Project will be Ontario’s first diamond mine.

At this time, the Victor Project was in its construction phase and unlike most of the passengers on the plane, a small group of us would not be staying directly on site. We were part of De Beers Canada’s Exploration Division, working on a project known as the Victor Resource Extension Program, or VicREP for short. Victor is one of 16 diamondiferous kimberlite pipes discovered on the property and we would be evaluating the resources of several of these other pipes. Our goal: the possibility of extending the life of the mine beyond the 12 years Victor is expected to produce.

As a student studying to become a mining engineer, I knew that a good first step would be to work for a mining company in their engineering department on projects such as mine design, planning, dewatering, and ventilation. But the logical step for me in understanding the stages in the life of a mine included those before a reserve had been defined.

And thus, I spent the next several months with a small exploration team, who I soon knew

by David Milstead better than most of my closest friends. We lived and worked out of an exploration camp set up for core and bulk sampling programs conducted on the Victor kimberlite pipe.

The camp had all of the necessities one would need: a kitchen, sleeping quarters (where we slept four to a cabin), office space, a core shed, and even a small workshop. In fact, the site was large enough to house more than just our exploration crew, so when the seasonal 54 | CIM Magazine | Vol. 2, No. 7

winter road opened up, we shared the location with workers involved in the transportation of supplies to site. These flat- bed trucks ran 24 hours a day and delivered a year’s worth of construction materials needed to build the Victor Project in just a matter of weeks. I, for one, marvelled over the logistics involved in such an operation and watched the supply stagDavid spotting drill collar locations in the field ing areas grow on a daily basis, to a total of 2,209 loads by the end this housing and construction infraof the campaign. structure of the Victor Mine, and trips During the winter months, our team to the site became cleverly known as endured temperatures as cold as -35ºC “going to town.” and some that exceeded -60ºC with the In addition to the analysis of drill windchill. Venturing out in these tem- core samples and gathering of geotechperatures to spot drill collar locations, nical data at the exploration camp, I we became very good at dressing appro- found myself in the field on a weekly priately for these weather conditions. basis. Determining and marking the When spring set in, I quickly under- locations of drillholes using flagged stood the importance of a winter drilling pickets was important for drill setups, program, as the once frozen muskeg especially when the snow-covered landthawed into land almost completely scapes changed as frequently as the conimpassable, and solid ground turned struction occurring at Victor. into small ponds and areas where the Throughout my time in the James water table was very near to the surface. Bay Lowlands, I began to understand This happened to provide ample breed- the importance and implications that ing ground for the area’s most common exploration techniques can have on the predatory bird: the mosquito. development of a mine. Starting early Camp rotations consisted of three on with detailed airborne geophysical weeks on site and one week off. With surveys, geotechnical analysis of core such a rotation, arriving back at the samples, and the initial workings of a Victor Project clearly highlighted the geological model, I found out firsthand on-going changes happening around the relationship between information the site. In one week’s time, areas such generated in the exploration stage and a as the processing plant and mine living mine’s design. I would therefore encourquarters could change completely and age any mining engineering student become hardly recognizable. It was like with an interest in geology to experithe construction of a small city in a ence life at an exploration camp. After rural area of Ontario. In fact, the explo- all, the stages in the life of a mine start ration camp was driving distance from with the discovery. CIM About the Author David Milstead is a third-year mineral engineering student at the University of Toronto

innovation page z

Improving tire life: a new Monitoring r of tires for surfacey mining operations has come down to a single focus— trucks; how can I make my tires last longer?

The immediate response may seem quite simple, but the implementation of remedial F measures still does not entirely meet the expected outcome. We all know that running a tire for too long a period causes heat and mechanical separation issues, and that inadequate running surface housekeeping can lead to cuts and other damage.

Despite much improved attention to these areas, we may still be missing an opportunity in terms of how we measure tire life with operating metrics to identify damage concerns. The tonnekilometre per hour (tkph) measure is taken as an indication of tire 1 life in terms of loads moved over a certain distance within a given time frame.

Monitoring and reporting of such values (are commonly ) taken as an average for a given shift, week, or month, and through the averaging process, weH may be missing critical information. Why should it be, for example, that two similar trucks operating on similarly maintained ground surby Gord Winkel faces have tires on and Tim Joseph one unit that greatly outlive those on another?

The picture becomes clearer when we consider the individual tire motion relative to the ground surface on a realtime basis. Within any given duty cycle, from loading device to dump locale, the ground surface may be free from debris but will develop a rolling profile, albeit slight, due to long-term surface deformations from extended use. As the tire

S U CIM n ovati s P ge understanding Improving t e l f : a w u d s

across the surface, fmoves u c m it will react to the ground ?” T response profile through

p

at the suspension. As a result, a given tire may, from time to time, float over the ground surface at the expense of transferring the load to the other tires on the unit, or it may itself impact the ground with a greater single load.

If we consider that all tires on a truck under stationary conditions are subjected to the weight of the truck or effectively what we refer to as a “1g” load, then depending on the motion of the truck and the nature of the running surface profile, any tire may be subjected to loads less than or greater than 1g, depending on the dynamic motion of the truck. In fact, under some adverse ground profile conditions where a truck was subjected to excessive rolling, pitching, and twisting (racking) motions, the load level on a given tire was measured as high as 4g, that is four times the nominal load expected to be carried by that tire. However, on review of the average tkph data for the shift, the occurrence was not apparent.

The previous situation is a concern.

Consider that if a large number of repetitive loading cycles are imposed on a structure, it will eventually fail. If the load level is increased and the same number of cycles are imposed, then the structure will fail sooner. If we measure the average load for the given duration of service, the peak event evidence becomes smoothed out. It is still there but we do not recognize its presence and impact. So what is the answer? How do we monitor this phenomenon and,

h

d w q x

l ,b . W

D -

more importantly, what can we do about it? Using an alternative approach for measuring a tkph equivalent that accounts for the frequency and size of peak loading events would be a good start. Software, such as that displayed in the diagram, allows snapshots of strut loading expressed in “g” level, which then captures the tire peak loading events.

With the capability to then measure tire loading jas a truck operates on a given haul road, the truck becomes an indicator of haul road conditions. Data is already being collected for most trucks; we just need to be able to transform the information into a measure 4 that more effectively indicates haul road condition. A truck equipped with this measurement and reporting capability provides the necessary feedback for operations to more effectively dispatch grading equipment to profile haul roads and lessen detrimental z dynamic loads on tires. Innovative S reporting of what the truck can tell us, U about not only its own performance but that of its tires and the running surface below, allows us to take action and improve tire life. CIM

About the Authors Gord Winkel is technology manager, Kearl Oilsands Project, and Tim Joseph is president and principal engineer, JPi International Ltd. and director AEGIS, University of Alberta.

trucks; November 2007 | 55

parlons-en Le frein à l’innovation – nous !

Peu importe l’industrie, toutes cherchent le même but : produire plus à coût moindre. Abordons le deuxième sujet: la réduction des coûts. La solution facile est de trouver un compétiteur prêt à offrir le même produit à un prix moindre mais avec l’augmentation sans cesse des coûts d’énergie, de la main d’œuvre, du transport, etc., le fournisseur ne peut se lancer dans une guerre de prix car, à la fin, il n’y a aucun gagnant. La plupart font faillite et le survivant augmente le prix pour renflouer la dette générée par cette guerre. La mine revient donc à la case départ. Que les prix des métaux soient à la hausse ou à la baisse, toutes les mines veulent réduire leur coût de production. Existe-t-il d’autres solutions pour réduire les coûts et être plus performant ?

C’est à ce moment que l’innovation joue un rôle important: apporter une solution différente dans le but de diminuer les coûts de production et être plus performants. À quel prix ? Il est étonnant de conpar Michel Brissette stater que même si le produit se vend à un prix supérieur, sa performance est totalement différente du produit existant et, à la fin, les coûts peuvent être moindres ! Il existe plusieurs solutions innovatrices sur le marché mais combien d’entre-elles sont vraiment utilisées dans l’industrie ?

Très peu. Les solutions innovantes utilisées ont pris des années à percer dans l’industrie minière. Il n’est pas rare d’avoir un délai de 10 ou 15 ans entre 56 | CIM Magazine | Vol. 2, No. 7

la sortie de l’innovation et son succès tissement des projets en industriel. Pourquoi ? Voici le para- cours. Donc, aucun noudoxe de l’innovation : il faut prouver veau projet ne peut être que la solution innove et réduit les entamé. Ce qui nous amène coûts avec une garantie mais personne à la deuxième raison : la ne veut être le premier. Où sont les priorité des projets. Les références ? Qui sont les premiers utili- mines se concentrent sur sateurs ? Évidemment, au début de l’in- les projets les plus rentanovation, il n’y en a pas ! bles (augmentation de la Au début de ma carrière, les sociétés capacité) ou sur les prominières de fer devaient chercher fort blèmes de stabilité d’opérapour trouver des gains énergétiques tion causés par des variapotentiels de 5 %. Nous proposions tions du minerai d’une une solution innovante qui pouvait nouvelle zone (flotation). aller en chercher 10 % pour l’une d’en- La dernière raison est l’intre elles ! Cette solution occasionnait connu. Quels sont exacteun seul problème mais au lieu de ment les gains ? Combien chercher une nouvelle solution à ce cela représente-t-il ? problème, il ne fallait pas changer. À Il est étonnant de conscôté, nous avions une autre solution tater qu’après toutes ces innovante mais cette fois-ci, la mine a années de développement vu le potentiel qui lui a permis d’aug- dans le broyage, il y a encore menter sa production de 8 % l’année du travail à faire et surtout, d’après. Par contre, elle a du dépenser place à l’optimisation. Pire près de 500 000 $ pour y parvenir. encore, tout est à recomDix ans plus tard, je suis toujours mencer. Nous n’avons pas dans le milieu du broyage. Quels sont encore toutes les réponses. les progrès ? Très peu, un développe- Le problème vient du fait ment technologique dans le broyage que ces solutions innovantes primaire (HPGR) et deux dans le broy- exigent des changements opérationnels age fin (Isamill et SMD). Depuis 8 ans pour être optimisé à 100 %. Le manque déjà, la compagnie propose une solu- de personnel empêche cette optimisation innovante pour le broyage fin avec tion. Aussi, peu de gens sont prêts à des gains énergétiques de 25 % à 50 % s’aventurer dans l’inconnu. Les opéradans des broyeurs conventionnels ! teurs sortent de leur zone de confort. Ils Nous sommes loin du 5 % qui corres- ne veulent pas s’adapter aux nouvelles pond souvent à la marge d’erreur conditions. Pourquoi changer ? Ça industrielle. Avec ce gain plus élevé, marche. Que fait-on ? On ne change pas combien y a-t-il de mines qui utilisent et on attend. le plein potentiel du produit pour Parfois, l’innovation s’applique seulediminuer ses coûts ? Pourquoi ? ment sur une certaine partie du procédé La raison première est le manque de (les rebroyeurs ou les cellules de nettoymain d’œuvre qualifiée. Avec le boom age) dont la priorité est souvent la de l’industrie minière et de l’industrie dernière car la diminution des coûts est pétrolière, tout le monde a besoin de moindre (100 000 $ à 150 000 $ par métallurgistes d’expérience. Il n’est année). Si cinq de ce type d’innovation donc pas rare de constater que le manque de personnel (métallurL’auteur giste, technicien) Michel Brissette est ingénieur de développement, occasionne un ralenWheelabrator Allevard Enterprise

parlons-en

À gauche : Charge de Millpebs dans un broyeur à boulets à Inmet Troilus En haut : Vertimills à Los Pelambres, Chile

sont appliquées, alors la réduction peut atteindre facilement le demi-million, ce qui devient non négligeable. Le seul prix à payer est d’avoir une ressource, le métallurgiste, ou deux, le technicien, à temps partiel pour s’en occuper.

L’innovation peut non seulement diminuer les coûts, elle peut aussi augmenter les revenus. Récemment, un essai effectué dans une mine aurifère a prouvé que la solution innovante permettait d’augmenter la récupération de l’or. Ce gain se transforme en un revenu approximatif de 700 000 $ par année. Durant cet essai, un potentiel supplémentaire de 300 000 $ avait été identifié en optimisant et changeant les paramètres opératoires du circuit. Un ajustement doit être effectué mais il y a plutôt eu un changement dans les priorités. La décision de la mine a été de ne pas procéder immédiatement à cette solution innovante.

Le travail de tout métallurgiste, senior ou non, est de détecter ces innovations, de les essayer et de trouver les nouvelles conditions opératoires qui permettront soit de diminuer les coûts, soit d’augmenter les revenus, soit d’avoir les deux à la fois. Il se peut que la nouvelle solution innovante requière des ajustements dans le procédé. À ce moment, lorsque le potentiel a été prouvé et que le retour sur l’investissement est rapide, alors c’est à l’ingénieur de solutionner ces ajustements. Mais que faire si l’ingénieur ou le métallurgiste est manquant ou utilisé à d’autres fins ? Souvent, la mine abandonne le projet au lieu de persévérer et de regarder l’ensemble total des bénéfices apportés par cette solution innovante.

Une solution à ce manque de main d’œuvre qualifié est d’utiliser le fournisseur plus efficacement comme parte-

naire car ce dernier a développé les compétences techniques spécialisées dont les mines n’ont plus. Encore aujourd’hui, les fournisseurs sont considérés comme des vendeurs et non comme des partenaires.

Le fournisseur est prêt à s’impliquer davantage pour trouver les ajustements nécessaires et adapter le procédé à sa solution innovante sans que la mine soit pénalisé. Malheureusement, les gestionnaires ne voient pas toujours cet aspect.

Je crois que les mines devraient travailler plus étroitement avec les fournisseurs. Ainsi, les deux parties trouveront une solution bénéfique avec l’utilisation de l’innovation en question (« win-win situation »).

L’innovation, oui, mais qui la freine ?

C’est nous qui changeons d’emploi, qui changeons les priorités, qui avons peur de l’inconnu, donc finalement, c’est nous qui la bloquons. CIM November 2007 | 57

des canadiens à l’étranger Les tribulations d’un expat Le travail à l’étranger, ça se prépare.

Le fait de travailler dans une mine est déjà une tâche particulière; le faire à l’étranger peut être stimulant, voire exotique pour qui sait s’y adapter ou carrément devenir un cauchemar.

Comment se préparer à vivre une telle aventure ?

Vous entrez en contact avec un mode de vie différent qui vous fait prendre conscience de votre propre mode de vie, de vos valeurs et de vos croyances.

Vivre à l’étranger est une occasion de vous redéfinir et de mieux comprendre votre propre culture. C’est d’abord et avant tout un voyage au cœur de votre identité. Qui n’a jamais entendu parler de choc ou d’adaptation culturelle ?

Vous quittez un monde nordaméricain dans lequel tout est tenu pour acquis; électricité, eau (potable et chaude), téléphonie et internet, supermarchés avec abondance de produits, etc.

J’ai eu la chance de vivre des expériences diverses que ce soit en pleine jungle à des centaines de kilomètres de toute civilisation, en pleine brousse mais à quelques heures d’une importante ville et en savane à quelques minutes d’un village.

Je travaillais sous forme de rotations : 30 jours de travail suivis de 26 jours à la maison (rotation extrapar Jean-Pierre Rivard ordinaire) et 9 semaines de travail suivi de 3 semaines à la maison (moins bonne celle-là).

Tous ces endroits avaient leur part d’exotisme… au départ.

✢

Voyage La joie de pouvoir « essayer » plusieurs lignes aériennes : 6 avions en 2 jours et demi pour se rendre à destination. L’incroyable expérience de passer d’un Airbus 340 à un appareil de brousse où l’hôtesse s’asseoit sur la glacière.

Le bon côté est, bien sûr, de pouvoir accumuler de nombreux « air miles » et 58 | CIM Magazine | Vol. 2, No. 7

ainsi pouvoir prendre d’autres avions pendant nos vacances et accumuler d’autres « air miles ».

La plupart des employeurs vous font voyager en classe affaire; ce qui vous permet d’arriver à destination en pleine forme et prêt à se mettre au boulot; par contre, d’autres n’y voient pas l’utilité et se demandent pourquoi on est si fatigué à l’arrivée.

Logement

Pause-repas du midi

Dans les sites miniers reculés, un complexe est construit sur place. Vous avez donc votre petite chambrette (avec douche, TV et internet bien sûr). On vous demande donc de manger, dormir et travailler, on s’occupe du reste (lavage, nettoyage de la chambre, bouffe).

Certains sites sont près de villes ou villages et, selon les employeurs, on vous octroie une villa avec tout le personnel (bonne, cuisinière, jardinier, etc.) ou une chambre d’hôtel ou une maison à partager avec 2 ou 3 autres personnes. À vous de bien lire votre contrat.

Quand il s’agit d’une mise en marche (start-up) d’une nouvelle mine, c’est carrément du scoutisme : tentes, bivouacs, cuisine de fortune en attendant la construction des locaux définitifs.

Exotisme Qui n’a jamais rêvé de faire une excursion en brousse ou dans une jungle ?

Et en plus, on vous paie pour le faire.

C’est comme visiter un zoo mais ce sont les gens qui sont dans les cages et les animaux en liberté. Vous faites votre jogging matinal en compagnie d’un guépard, vous vous faites voler votre ballon de volleyball par des singes et à partir de 18h, ça gueule toute la nuit.

Vous rencontrez des gens qui ne parlent pas votre langue mais qui désirent tellement partager avec vous; des gens qui n’ont pas vos habitudes, vos méthodes mais qui veulent autant apprendre que vous montrer; des gens qui mangent de drôles de choses et qui pensent que vous manger de drôles de choses; des gens qui ne sont pas trop trop pressés et qui se demandent pourquoi vous, vous êtes toujours pressés; des gens qui gagnent en une année ce que vous gagnez en une journée; des gens pour qui demain c’est demain et ce demain sera exactement comme aujourd’hui alors que vous planifiez vos vieux jours dès votre premier emploi.

Un jour ou l’autre, l’exotisme prend des allures d’irritant pouvant même devenir agressant. C’est la période du

des canadiens à l’étranger

Petit inconvénient de la saison des pluies

« rien ne fonctionne dans ce foutu pays ! » et vous en arrivez même à perdre le sens de l’humour. C’est le contact quotidien avec la différence qui engendre ce renversement de situation. Un malaise insidieux fait baisser votre seuil de tolérance.

Tout, ou presque tout, peut devenir irritant : climat, nourriture, sommeil insuffisant, malaises physiques et … gastriques, rythme de vie ou de travail, écart entre richesse et pauvreté, difficulté à s’exprimer dans la langue du pays, difficulté à lire la langue du pays si c’est dans un autre alphabet, attente, foule, hygiène, etc. Bref, trop d’expériences différentes à affronter en même temps, et cela, peu importe le pays. Selon l’ampleur des difficultés rencontrées, c’est alors que l’on parle de choc culturel.

Puis, avec le temps, de la patience, beaucoup, beaucoup, beaucoup de patience, le sens de l’humour (très important, voire essentiel), la joie de vivre et l’aisance dans le milieu étranger s’installent.

À mettre dans votre trousse d’outils : • être curieux; s’informer sur l’histoire du pays d’accueil, sur les rituels.

• parler plusieurs langues (entre autres : français, anglais et espagnol) vous ouvre quasi toutes les portes, • apprendre quelques phrases dans la langue du pays si c’est une langue

L’auteur : Jean-Pierre Rivard est administrateur des systèmes pour l’ICM

que l’on ne maîtrise pas. C’est une simple question de respect, • échanger avec les personnes du pays; saluer les personnes qui vous entourent, participer aux fêtes et aux rituels, • s’adapter car il ne faut jamais oublier que l’on est « chez eux », • s’armer de patience, patience, patience, patience, patience, patience, • ne jamais perdre son sens de l’humour, • être autonome, • avoir l’esprit ouvert. À éviter à tout prix : • parler politique, • comparer constamment avec notre pays (nous, on a ceci, on a cela …..), • s’attendre à ce que le mode, le rythme et la méthode de travail soient « nord-américains ».

La vie d’ « expat » fut pour moi une expérience fantastique avec ses excellents côtés et ses petits inconvénients. C’est une expérience que je vous souhaite de vivre ardemment. CIM November 2007 | 59

canadians abroad Tribulations of an expatriate Working abroad takes planning.

Working in a mine is already something special; working abroad in a mine can be stimulating, even exotic, for someone who can adapt, or it can become a nightmare.

How does one prepare for such an adventure?

While working abroad, you come into contact with a different lifestyle, one that makes you aware of your own lifestyle, your values, and your beliefs. Living abroad represents a good occasion to redefine yourself and to understand your own culture much better. It is first and foremost a voyage to the core of your identity. Who has not heard of cultural shock or cultural adaptation?

Our home away from home You leave behind a North American world where everything is to accumulate many Air Miles and thus taken for granted: water (potable and be able to take more planes during hot), telephone and Internet, super- vacations, therefore accumulating markets with an abundance of prod- more Air Miles.

Some employers will have you travel ucts, etc.

I have had the occasion to live in executive or business class, allowing through various experiences: deep in you to arrive at your destination in top the jungle, hundreds of kilometres shape and ready to work. Others, howfrom civilization, in the bush a few ever, see no need for this and wonder hours from a big city, and in the savan- why you are so tired when you arrive. nah, a few minutes from a village, both in Africa and South America. I worked Lodgings In remote mining sites, a complex is on rotation shifts: 30 days of work followed by 26 days at home (extraordi- built on site. You have your little nary rotation), and nine weeks of work “roomette” (with shower, TV, and natfollowed by three urally, Internet); you are just required weeks at home (less to eat, sleep, and work; the rest is par Jean-Pierre Rivard interesting). taken care of (housekeeping, washing, All these places had cooking).

Certain sites are near towns or viltheir share of exoticism… at first. lages and, depending on the employer, Travel you can have a villa with all the perOh! The joys of experiencing sev- sonnel (maid, cook, gardener, etc.), a eral airline companies: six planes in hotel room, or share a house with two two and a half days to arrive at our des- or three other people. It is up to you to tination. The incredible experience of read your contract carefully. going from an Airbus 340 to a bush When you are there for the startup plane where the flight attendant sits on of a new mine, it is scouting, pure and the cooler. Of course, one advantage is simple: tents, bivouacs, and field

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60 | CIM Magazine | Vol. 2, No. 7

kitchen, while awaiting the construction of permanent installations.

Exoticism Who has not dreamt of a bush or jungle excursion? And being paid for it to boot!

It is similar to visiting a zoo, but where the people are in cages and the animals are free. You do your morning jogging alongside a cheetah, monkeys steal your volleyball, and, from 6 p.m. on, there are strange sounds throughout the night.

You meet people who do not speak your language but who are greatly willing to share, people who do not have your habits or methods but who want to learn as much as to teach; people who eat funny things and who think you eat funny things; people who are not in a hurry and who wonder why you are always in a hurry; people who earn in a year what you earn in a day; people for whom tomorrow is tomorrow and for whom tomorrow will be just like today, while you plan your retirement during the course of your first job.

Working abroad can be stimulating, even exotic, or it can become a nightmare

African Savana exoticism

After a while exoticism brings irritants that can even become maddening. This is the “nothing-works-in-thisforsaken-country” stage; you can even lose your sense of humour. It is the daily contact with the differences that generates this reversal of situation. An insidious malaise lowers your tolerance level.

Anything, or almost everything, can become an irritant: climate, food, insufficient sleep, physical (and gastrointestinal) upsets, work or life rhythm, the gap between wealth and poverty, difficulty with the local language—to speak it or to read it if in another alphabet, waiting times, crowds, hygiene, etc. In short, too many different experiences at a time, whatever the country. According to the magnitude of the difficulties encountered, this is known as culturel shock.

Then, with time, patience (a great deal of patience), and a sense of humour (very important, even essential), the “joie de vivre” and a certain social ease in a foreign environment come back.

Key clues for working abroad When heading to a new position in a different country, don’t forget the following: • Be curious; brush up on the history, the customs of the country.

• Speak several languages (among others: French, English, Spanish); this will open almost all doors.

About the Author Back in Montreal, Jean-Pierre Rivard currently works as a systems administrator at CIM.

• If you do not speak the language, at least learn a few sentences. This is simply a question of respect.

• Exchange with the local people, greet the people around you, take part in festivities and rituals.

• Adapt, do not forget you are in “their” country.

• Arm yourself with patience, patience, patience, patience, patience, and more patience.

• Never lose your sense of humour; • Be autonomous.

• Keep an open mind.

At all costs avoid: • Discussing politics.

• Constant comparisons with your country (we have this, we have that).

• Expecting North American work modes, rhythms, and methods.

The life of an expatriate was for me a fantastic experience with excellent aspects and little inconveniences. I sincerely wish that you might have such an experience. CIM November 2007 | 61

MAC economic commentary The future of northern resource development in Canada – optimism or pessimism?

For a number of reasons, natural resource development in the Canadian North is emerging as one of our country’s most exciting economic policy issues. Climate change, the human resources gap, high mineral prices, potential economic benefits to aboriginal groups, northern sovereignty, and the efficiency of environmental review processes are among those national issues that are closely integrated with northern resources and that will influence the pace of development.

The relationship

by Paul Stothart between natural resources and northern development has been hit and miss throughout Canada’s history. It presently remains very unclear whether the necessary array of variables will fall into place, leading to a sustained boom in northern economic development, or whether key pieces will go missing and the full long-term economic potential will again be missed. In this sense, one could logically have either an opti62 | CIM Magazine | Vol. 2, No. 7

mistic or pessimistic take on future developments.

On the positive side, there are three general variables that should lend an air of optimism. First, the level of mineral exploration spending underway in northern Canada can best be described as staggering. Driven by historically high global mineral price levels, companies will spend some $440 million in the three northern territories on mineral exploration and deposit appraisal in 2007, up from $160 million five years earlier. Approximately one of every 20 dollars in mineral exploration worldwide is being spent in the three Canadian territories. Companies are seeking potential developments in uranium, diamonds, gold, and other minerals in northern Canada.

Second, the question of northern sovereignty has acquired a level of potency at the political level that it has not had in past years. The planting of a Russian flag on the polar seabed, multicountry disputes over the Lomonosov Ridge, Arctic expeditions by countries such as Denmark, and repeated questioning by the US of the sovereignty of the northern passage are among recent developments on this theme. Canadian announcements regarding acquiring three northern vessels and investment in a northern deep-sea port at Nanisivik, Nunavut, have added to the profile of this issue. Other federal parties in Ottawa are reading the winds of change and aiming to develop positions and policies on this front, so as to not cede political ground to the governing Conservatives. The net effect is likely to be greater federal priority and resource allocation towards northern development.

A third positive consideration relates to the significant strides made in recent years by Canadian businesses in the area of aboriginal relations. Partnership agreements provid-

ing the basis for mutually beneficial relations between business and aboriginal communities have become common practice in Canada – some 40 such socio-economic agreements have been signed in recent years.

These agreements, such as those seen in the diamonds sector, can bring employment, financial equity, social, supplier, and environmental benefits to the affected aboriginal communities. This business progress is mirrored in the Mining Association of Canada’s Toward Sustainable Mining initiative, where a new framework regarding aboriginal relations has been accepted and performance measures are being developed.

Among the causes for pessimism, a key impediment to sustained economic development in northern Canada remains the scope, cost, and complexity of infrastructure development. The construction of resource development projects and the establishment of transportation routes in the North remains a costly undertaking. As one example, a Bathurst Inlet Road and Port proposal has been in play for several years as a possible method of accessing and transporting resources in the northern NWT and Nunavut. The economics of a number of gold, copper, zinc, and diamond mining opportunities, among others, could conceivably be enhanced through the existence of such infrastructure. However, various incarnations of the project have been in discussion with the federal government for over five years and the proposed capital construction costs of $164 million could increase significantly if the project moves forward. It is evident that the local tax base of the three territories, with a total population of 100,000, could not come close to supporting these kinds of infrastructure expenditures, while those public funds

MAC economic commentary coming from Ottawa could also be diverted towards other forms of infrastructure, such as air strips and defence/security investments.

governments are not doing their part in this regard.

Beyond infrastructure, a second main impediment to future resource development relates to the broader aboriginal and resource revenue sharing theme.

As noted earlier, progress has been made in this area in recent years.

H o w e v e r, considerable uncertainty remains in a c o u p l e respects.

First, in response to recent court rulings, governments have not yet provided clarity regarding how they and industry should best accommodate aboriginal interests.

This question has been further complicated through recent panel and board decisions that have drawn upon the less tangible “spiritual value” of certain geographic regions in making recommendations to government. As well, the prevalence of socio-economic benefit agreements between business and aboriginal groups has raised an open question as to the appropriate role of the federal government in sharing resource revenues.

The question of what

The relationship

About the Author Paul Stothart is vice president, economic affairs, for the Mining Association of Canada

closed for business

Further infrastructure challenges are being seen in areas such as ice roads, where the effect of global warming is diminishing the reliability and seasonality of these routes. Diamond companies in the Lac de Gras region of the NWT, for example, can no longer depend upon the availability of a three-month ice road to facilitate their necessary construction and expansion activities.

Another infrastructure-related obstacle relates to the fact that Canadian governments have not been fulfilling their fundamental role of mapping the country and building modern databases of geoscience information. Annual investment in this area has fallen by 50 per cent between 1988 and 2007 at the federal level and by 55 per cent at the provincial government level. One illustrative consequence of this decline is that some 73 per cent of Nunavut is unmapped, or poorly mapped, and, at present investment levels, the first full mapping of the territory would not be finished for 80 years. Business requires quality geoscience information in order to improve the effectiveness of its exploration spending –

co nt ac tM S ar as k k Lis a ko to w o ic n h m O lis ff ko ic w e ic h@ sr k. co m

between natural resources and northern development has been hit and miss throughout Canada’s history

constitutes fair and proper sharing of resource revenues, and whether this would best be delivered from the federal or territorial governments, remains far from adequately answered by the federal government. The existence of unsettled land claims adds a final layer of complexity affecting the development of northern resource projects, such as the proposed MacKenzie Valley natural gas pipeline.

If business, government, and aboriginal groups can collectively address these main obstacles over the coming months and years, then it seems likely that business investment in resource development will be able to help break the pattern of economic and social dependency on the South that has existed for so many decades in Canada’s North. It will take some time to observe the evolution of this issue, before deciding whether one should be optimistic or pessimistic in this regard. CIM

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November 2007 | 63

standards Preparing content of a technical report – reasonably relying on others Under NI 43-101 Standards of Disclosure for Mineral Projects, a qualified person is responsible for preparing or supervising the preparation of the technical report and providing scientific and technical advice in accordance with applicable professional standards. Exploration campaigns on mineral properties frequently span many years with differing qualities of data generated by multiple operators.

The technical report content requirement under Form 43-101F1 covers a broad range of subject material that extends beyond the technical expertise of most engineers or geoscientists.

What allowance is there for a qualified person preparing a technical report to reasonably rely on others?

Section 3.2 of Companion Policy 43-101CP advises that if a qualified person relies on the work of a person who is not a qualified person to prepare a technical report or to provide information or advice to the issuer, the qualified person must take responsibility for that work, information, or advice and must take whatever steps are appropriate, in his or her professional judgment, to ensure that the work, information, or advice that he or she relies upon is sound.

Exploration data CIM Best Practice Guidelines expect that data acquired over multiple periods and by various workers

by Greg Gosson should be verified by the qualified person and checked prior to entry into the database. Throughout the process of mineral exploration, the qualified persons should ensure that a quality assurance program is in place and that any required quality control measures are implemented. As explained under NI 43-101, data verification must include: (a) a discussion of quality control measures and data verification procedures applied; (b) a state64 | CIM Magazine | Vol. 2, No. 7

ment as to whether the qualified person has verified the data referred to or relied upon; (c) a discussion of the nature of and any limitations on such verification; and (d) the reasons for any failure to verify the data. Blind acceptance of the accuracy or completeness of sampling data would not be acceptable practice.

and technical nature. A qualified person must include information on property title, surface rights, environmental liabilities, permitting requirements,

Mineral resource and reserve estimates CIM Definition Standards that are incorporated by reference into NI 43101 provide the following instructions to qualified persons preparing mineral resource and reserve estimates: It is important that the Qualified Person accepting overall responsibility for a Mineral Resource and/or Mineral Reserve estimate and supporting documentation, which has been prepared in whole or in part by others, is satisfied that the other contributors are Qualified Persons with respect to the work for which they are taking responsibility and that such persons are provided adequate documentation.

Section 3.3 of Companion Policy 43-101CP provides guidance on the inclusion in a new technical report of mineral resource or reserve estimates prepared by other qualified persons.

When one or more qualified persons prepare a technical report that includes a mineral resource or mineral reserve estimate prepared by another qualified person for a previously filed technical report, one of the qualified persons preparing the new technical report must take responsibility for those estimates. In doing this, that qualified person should make whatever investigations are necessary to reasonably rely on that information.

Relying on other experts Content requirements of a technical report go beyond what is of a scientific

About the Author Greg Gossen is technical director, geology and geostatistics, AMEC Americas Limited

and discuss legal, political, marketing, socio-economic, or taxation issues if estimates of mineral resources or mineral reserves are included in the technical report. Clearly, a qualified person must rely on input from others for discussion on this type of content.

Item 5: Reliance on Other Experts of the Technical Report Form allows a qualified person to rely on a report, opinion or statement of a legal or other expert, who is not a qualified person, for information concerning legal, environmental, political or other issues and factors relevant to the technical report. The qualified person may include a disclaimer of responsibility for this type of information on the condition that they identify: • the report, opinion or statement relied upon; • the maker of that report, opinion or statement; • the extent of reliance; and

standards • the portions of the technical report to which the disclaimer applies.

It should not be considered reasonable for a qualified person to simply rely on the issuer for information on property title, surface rights, permits required, status of property agreements, royalties, back-in rights, or identification of any other encumbrances on the property. These really require legal opinion, which frequently exists because underwriters will nearly always request one to be prepared in support of company finance. The qualified person should request written permission from the law firm to reference the legal opinion in the technical report.

An audit firm with an office in the host country is a reasonable source of taxation information or other government levies that production from the mineral project would be subject to. A report by an environmental firm would be expected to support statements on environmental liabilities that exist on the mineral property.

ties law if they are uncertain about what is reasonable.

If a qualified person is unsure whether they should rely on someone else’s work, then they better be clear on what the downside is if the information they are relying on proves to have sig-

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Civil liability Qualified persons, providing a technical report or advice that is to be relied upon by officers, directors, or underwriters of reporting issuers in jurisdictions in Canada, are subject to civil liability under securities law.

Qualified persons have a defence against civil liability for a misrepresentation in their report or opinion as long as they conducted a reasonable investigation in preparing their report or opinion. In determining whether an investigation was reasonable, the court will consider all relevant circumstances, including any professional standards applicable to the expert. CIM Best Practice Guidelines and Definition Standards for Mineral Resources and Mineral Reserves, and Companion Policy 43-101CP provide guidance on industry standards when it comes to reasonably relying on information provided by others. It would behoove qualified persons to review these standards when relying on others and to seek advice from legal counsel experienced in securi-

nificant errors or omissions. Securities lawyers cannot make decisions on technical information but they can explain the legal implications to the qualified person, if there is insufficient due diligence because of blind reliance and then something goes wrong. CIM

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HR outlook Just how big is the labour crunch in mining?

Enhancing the quality of industry’s labour market intelligence targets predicted just two years ago (see Prospecting the Future, 2005).

The contrast between the 2005 and 2007 labour demand projections emphasizes the need for timely and accurate intelligence about rapidly changing supply and demand conditions in the Canadian mining sector. The challenge will be to get the right people with the right skills at the right time, in order to meet the demands of the sector. Without this crucial information, growth may be limited by shortages of appropriately skilled workers.

Beginning in the fall of 2007, MiHR has launched a new initiative that will build a national Mining Industry Workforce Information The Canadian mining and minerals industry is experiencing tremendous growth, following a number of years in decline. With global demand for minerals and metals at unprecedented levels, this mining “supercycle” is expected to be sustained for some time. The rebound has occurred suddenly and with little warning and, as a result, the sector’s human resources planning and development efforts in Canada have not kept pace.

Based on industry growth rates, sector productivity projections, and average attrition and turnover

by Barbara Kirby rates, the Mining Industry Human Resources Council (MiHR) has estimated that the sector will need to hire up to 10,000 new workers per year over the next 10 years to meet anticipated production targets (see Mining Labour Market Transition project report, 2007). This estimate is almost 24 per cent higher than the recruitment

MiHR has estimated that the sector will need to

needs of industry stakeholders and on documenting the currently available data and analysis from national, provincial, regional, as well as private and public sources. This will enable the MIWIN system to capitalize on those data which are already readily available and to develop collection methods and analytical tools for those that are not.

Funding has been provided through Human Resources and Social Development Canada to help support the MIWIN system, by engaging experts who will assess and compile existing information from secondary sources including census data, Canadian Labour Force Survey, Canadian Occupational Projection System (COPS), and others. MiHR will also oversee the design of the instruments to be used for primary data collection (employer surveys, educational

hire up to 10,000 new workers per year over the next 10 years to meet anticipated production targets

Network (MIWIN) to address the need for comprehensive labour market intelligence, providing industry stakeholders with the necessary data and analysis to more effectively target human resources development strategies towards filling the gaps between supply and demand. The MIWIN system will support industry employers by providing more accurate and timely information about the workforce—by province, by region, by occupation— which will facilitate decision making.

An enhanced forecasting ability will also help to inform both public and private policy makers.

The initial phase of this two year program will focus on identiAbout the Author Barbara Kirby is director, labour fying labour market intelligence market intelligence and workforce development, MiHR

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66 | CIM Magazine | Vol. 2, No. 7

surveys, and so on). Furthermore, program resources will be used to help build the IT platform and database to support the MIWIN system.

To ensure that activities at the national level are complementary to existing initiatives at the provincial or regional levels, MiHR is also coordinating this work with several provincial/territorial initiatives focused on labour market information and analysis. Efforts will be made to ensure compatibility of the MIWIN system with regional models. CIM For more information on the MIWIN project please contact Barbara Kirby, bkirby@mihr.ca

engineering exchange Breaking ground in Eastern Canada Since opening an office in Sudbury, Ontario, last year, SRK has wasted no time getting its feet wet in the local mining scene. George Darling, principal mining engineer and office manager, SRK, retired from CVRD Inco prior to joining SRK. He believed SRK’s experienced engineers and exceptional reputation could play an integral role in the local mines.

SRK has alliances with some of the biggest names in mining such as BHP Billiton, CVRD Inco, and Xstrata, but it has also been known to work with the junior companies as well. At the Lakeshore Gold (LSG) Timmins West Mine, Darling and the SRK team recently worked on a prefeasibility project. They realized that presenting a 13-chapter, 350-page pre-feasibility study to stakeholders would not only be time-consuming, but might also induce sudden-onset sleeping sickness to their audience members. With positive results in mind, SRK utilized Mine 24-d to present a 3D picture of the mine over a time period. The presentation was clear, precise, visually interesting, and very well received by the stakeholders.

Over at the Copper Cliff Deep site, CRVD Inco has brought together a group that is a true example of symbiosis in action. The group consists of three to four CVRD Inco members and several engineers from different companies. Darling applauds this partnership. “In a time

by Haidee Weldon of stretched resources, it’s interesting to find excellence in a variety of places and bring them all together, like a patchwork quilt, to work on a project with the same goal in mind.”

There are two mines at the Copper Cliff Deep site, located four kilometres apart. An important ore body has been located deep underground between the two mines and the CRVD Inco team is busy designing a new shaft to access

Bell Creek mill and mine in Timmins

the ore body and integrate the two existing mines.

The mining industry is constantly juggling how to be cost-effective while ensuring a safe work environment.

This was recently exemplified at De Beers Canada’s Victor Mine, Ontario’s first diamond mine. Naturally, while excavating the overburden to reach the Victor kimberlite pipe, the steeper the slope, the more cost-effective it will be. As always, good ‘ole Mother Nature is the determining factor. The angle of the walls is dependant on the stability of the stuff it’s made of as well as erosion and the gravitational force pulling it down to the centre of the earth. An SRK Geotech team designed a “trial pit” to test what angles the pit walls would hold. With 35 degrees optimal, and 15 degrees at bit expensive to say the least, the SRK team installed instrumentations to monitor, evaluate, and come up with a recommendation for a safe and optimum overburden pit wall angle.

The SRK office in Sudbury started with two people and in the last year has grown to nine. This is a tiny office by anyone’s standards but the Sudbury team is confident in taking on any proj-

ect within its realm. This is possible because SRK offices anywhere in the world can access the expertise of other engineers in their sister offices. Sam Gauvreau, a recent member of the Sudbury team, is pleased and enthusiastic about his decision to join SRK. “We work just down the street, but the next day we might have the opportunity to work in South Africa or Central America with world renowned geologists and geochemists.”

Of course, even the most efficiently run office can have the odd glitch. On a recent trip to Timmins for a mining conference, Darling and a co-worker were booked (by a well-intentioned office assistant) in a hotel that had recently been torn down! Not to worry, with the help of some locals with good connections, they found place to lay their weary heads.

They’ve only been here for one year, but with skill and determination, the SRK Sudbury office has found a secure foothold in Ontario. What next?

Perhaps SRK will venture into Quebec, or maybe even the Maritimes, making them truly national engineering consultants, solving mining problems from coast to coast. CIM November 2007 | 67

eye on business Current trends in project delivery

A

s a result of the sustained global boom in the mining industry, a considerable number of companies are now contemplating the development and construction of mining projects. Regardless of the type of mineral to be mined, this inevitably leads to consideration of the appropriate method of project delivery.

Traditionally, a common and often preferred method of project delivery was the turnkey or the engineer procure and construct contract, commonly known as the EPC contract (an EPC). Under this method, the contractor agreed to engineer, procure all required plant equipment, construct, and commission

by Andrew Gabrielson the project.

The principal advantage of an EPC was that the contractor agreed to deliver the project in accordance with an agreed schedule and often by a guaranteed completion date, for an agreed price and with guarantees that the project would attain specified levels of production upon being commissioned. An EPC provides a significant level of certainty for the project owner and its bankers with respect to 68 | CIM Magazine | Vol. 2, No. 7

both the delivery of the project, as the risk relating to cost, schedule, and performance of the project was borne substantially by the contractor, and for performance of the project, as the contractor had to deliver a project that was fully operational and compliant with the specifications of the owner, and any defect or default in the project being the contractor’s responsibility, except where an EPC provided otherwise.

Given the current demand for materials, labour, and constructional plant and equipment, and the fact that long lead items have delivery times commonly exceeding 18 months, it is now difficult for contractors developing projects in the mining industry to control the risk relating to project construction, particularly risk relating to cost and schedule. There are now few contractors in the present market willing to deliver a mining project under an EPC, and those contractors who are include a significant premium in the contract price.

Most project owners have now been required to utilize different methods of project delivery, which have invariably involved their assumption of significantly greater

risk. The method of delivery now most commonly being used with respect to mining projects (particularly by owners of significant scale and balance sheet strength) is the engineering, procurement, and construction management contract, more commonly known as the EPCM contract (an EPCM). Under an EPCM, the contractor, usually an engineering firm, is largely responsible for design, procurement, and construction management of the construction of the

Most project owners have now been required to utilize different methods of project delivery, which have invariably involved their assumption of significantly greater risk project, with the latter two functions being performed by the contractor largely as the agent of the owner. The owner, either itself or through the contractor acting as its agent, engages and pays all suppliers, vendors, and contractors who supply plant and equipment, or construct the project according to the design of the EPCM contractor. Though the contractor is largely responsible for design, procurement, and construction manage-

About the Author Andrew Gabrielson works for Fasken Martineau DuMoulin LLP

PALADIN RESOURCES LTD

ment under an EPCM, risk (particularly in relation to engineering and capital cost, schedule, and performance) is largely borne by the owner. This requires the owner to have adequate financial reserves available to meet project risk and contingencies. In the present market, significant cost and schedule delays under an EPCM are not uncommon and can be spectacular.

Despite exposure to greater owner risk, an EPCM is not without its advantages. Commonly an EPCM will permit earlier commencement of the project as, unlike an EPC, final project design is not required in order to facilitate project pricing or commencement. Given the greater level of risk being assumed by the owner, an EPCM, by its terms, usually conveys on the owner significantly greater flexibility and control, particularly over design, procurement, scheduling, and progress of the project. This often leads to more efficient pricing and a lower price. In addition, any cost savings obtained through value engineering or improvements in design are to the account of the owner.

Most EPCM contractors of any substance can be motivated by a combination of incentives and penalties to bring the project in on time, on budget, and with the required level of performance.

The principal disadvantage of an EPCM is the substantial transfer of project risk to the owner. Most EPCM contractors are, in respect of liability arising under an EPCM, unwilling to put at risk anything greater than the profit obtained on engineering fees paid to them under the EPCM. Profit is usually in the order of 10 to 20 per cent.

Commonly, that liability is further limited by the principal remedy of the owner against the contractor being confined to the reperformance of any defective engineering services.

While, EPCM contractors will often accept penalties in connection with cost, schedule, and performance, such penalties are of a limited amount and usually will not make any impact on defraying any significant loss suffered by an owner, if the contractor fails to deliver the project on time and within budget. Furthermore, it can be difficult to determine and allocate liability, as there is no single point of responsibility for performance of the project and the owner faces the unenviable task of determining which of its multiple contractors is responsible for any lack of performance of the project. In short, if the owner’s expectations for the project, as expressed in an EPCM, are not met, its remedies are limited.

Finally, a project of any size will result in the EPCM contractor committing a considerable number of its personnel to the project. This requires that the owner have sufficient in-house engineering resources to supervise and manage the contractor’s usually voluminous demands for input, approvals, and information. While this is not usually an issue for major companies, smaller companies lacking such resources can cause project delays and frustration for the EPCM contractor, which ultimately has negative effects on delivery of the project. CIM

Paladin operates in the minerals resources industry with a principal business focus on development and operation of uranium projects in Africa and Australia, as well as evaluation and acquisition opportunities throughout the world. The Company is listed on the Australian Stock Exchange and additional listings on the Toronto Stock Exchange in Canada. In 2007 the Langer Heinrich Uranium Mine in Namibia came into operation and achieved first production.

In Malawi, construction of the Kayelekera Uranium Mine commenced and production is expected in late 2008 using an acid leach process.

Paladin has also secured control of the 3rd largest uranium province in Australia through the acquisition of Valhalla Uranium Ltd and an 82% interest in Summit Resources Limited.

Finally, the successful and timely fundraising of US$250M through a Convertible Bond issue in November 2006 has enabled the Company to move forward in a well funded manner. Paladin remains confident of the positive outlook for the nuclear industry. Its strategy to establish progressive development of uranium mines and, via M&A activity, achieve a global footprint.

General Manager - Executive Leadership Role - New Uranium Operation The company is seeking to appoint a General Manager for the Kayelekera Uranium Mine, to provide executive management and leadership for the development and operation of the mine. You will need to draw upon your mining related qualifications and extensive, senior level, industry experience to successfully implement the operation on time, schedule and budget, and then ensure the operations achieve budgeted costs and production while continually striving to improve operating parameters. Responsible to the Executive General Manager – Operations Development, it is essential that you have experience in uranium processing and/or mining. Developing country experience would be an advantage. The role will be offered as residential or FIFO, however you will be expected to be on site for a large part of the commissioning stage.

Malawi is an English speaking, predominantly Christian country, bordered

by Zambia and Mozambique, on Lake Malawi, in southeastern Africa. It has a very stable political climate and the local community has embraced the mine and the company.

Senior Operations Opportunities The company also has a number of senior operational opportunities at various locations in Africa and Australia and seeks expressions of interest from experienced uranium mining and/or processing professionals for the following roles: - SHREQ Manager - Environmental Manager

- Engineering Manager - Senior Production Controller

- Manager Metallurgy - Processing Superintendent

- Chief Chemist - Process Control Technologist

- Senior Radiation Officer - Geologists - Electrical/Control & Instrumentation Engineer Opportunities are not limited to the above roles, and we welcome expressions of interest from all uranium industry professionals interested in other opportunities with Paladin Resources.

Visit www.paladinresources.com for detailed project information.

Please email your application to Nathan.hunter@beilby.com.au For initial enquiries or any assistance you require in making your application please contact Vic Bullo or Nathan Hunter on +61 8 9323 8888.

November 2007 | 69

What does the future hold for Uranium City?

The industry’s abuzz with activity.

With today’s high uranium prices, junior exploration companies are feverishly searching for new deposits as well as revisiting old mine sites across the country. One such place being re-examined is the area surrounding Uranium City, which once was a thriving community that serviced the many mine sites around it.

There’s no denying it, Canada is a beautiful country, and the pristine water of Lake Athabasca is a perfect example.

Throughout the 19th century, the area surrounding the lake was mainly used for trapping and prospecting. However, in 1935, uranium ore was discovered in the Beaverlodge area of northern Saskatchewan.

A new industry emerges During World War II, the Canadian government banned private exploration of radioactive minerals and expropriated Eldorado Mine from C.E. St Paul and G.A. LaBine. Newly renamed Crown Corporation Eldorado Nuclear, the company’s exploration programs eventually led to the development of the Ace, Fay, and Verna mines. Within a few years the ban was lifted and a staking rush ensued.

By the end of the 1940s to early 1950s, close to two dozen uranium

by Andrea Nichiporuk mines were in operation in Canada—one of the biggest located in northern Saskatchewan. The ‘tent cities’ that were popping up around the mines in Saskatchewan did not please the provincial government and, as such, in 1952, construction on a new town, one that would service all the surrounding areas, commenced.

Uranium City was born.

Located 50 kilometres south of the Saskatchewan–Northwest Territories 70 | CIM Magazine | Vol. 2, No. 7

In the early 1980s the price of uraborder on the northern shore of Lake Athabasca, Uranium City was a town nium dropped to US$19 per pound. In planned for 5,000 that was modelled on June 1982, Eldorado shut down its operations, which the company town of Arvida, Quebec. Beaverlodge Within four years, Uranium City had employed an average of 575 workers per become the fastest growing city in year over its 30-year existence. Uranium Saskatchewan complete with electricity City subsequently dropped to a mere and a sewer system. It had a local couple hundred residents and the wateradministrator, mine recorder, two works and sewer system were shut off stores, a garage, restaurant, a 60-person everywhere except for the city’s core and school, liquor store, and hospital. A port on Hospital Hill. was also built nearby at Black Bay. Between the mid-1950s Uranium City was and 1960s, three mills, one the birthplace of two Canadian celebrities: each at Eldorado, Gunnar, Gina Kingsbury, gold medalist, women’s Canadian and Lorado, as well as a ice hockey team, 2006 Winter Olympics dozen uranium mines were Gilbert A. LaBine, Canada’s “Mr. Uranium,” in operation in the Canadian Mining Hall of Fame inductee Beaverlodge area. However, by 1964, only the mill at Eldorado remained in operation and was The city’s prospects Amidst all the claims staked in the only one left producing uranium in Saskatchewan. By 1959, the population of Saskatchewan between 1953 and 1981, Uranium City was about 4,600, with an 16 mines entered production. Eldorado’s additional 3,000 or so in the mining Ace, Fay, and Verna mines produced towns of Eldorado and Gunnar a few over 40 million pounds of uranium combined. The company’s Beaverlodge operkilometres away. ation is the first uranium site in Canada A fluctuating market to have a planned decommissioning Uranium City’s fate was to be deter- with regulatory approval. As well, a mined by the demand for the metal. In comprehensive study on the rehabilitathe midst of the mine closures of the early tion of the former Gunnar minesite 60s in the Beaverlodge area, Uranium began last summer, an effort of the City suffered and the population dwin- Canadian Nuclear Safety Commission dled. It sprang back to life in 1967 and and Natural Resources Canada.

1968 when the demand for uranium was In 2003, the hospital shut down. up. Despite cutbacks in 1969 and almost Today, about 100 people call Uranium shutting down two years later, Eldorado City home and the only access is by the began expanding its operations in north- winter road or by air. The normally ern Saskatchewan as the uranium market peaceful city has seen an increase in was performing well. The company set up activity lately with the renewed explotraining programs for employees who ration efforts taking place in northern wished to get ahead in their career. By Saskatchewan. What will the next phase 1980, about 10 per cent of Eldorado in the city’s history entail? Only time will tell. CIM employees were native.

Did you know?

cim news CIM welcomes new members Abrak, Amin, Morroco Addie, Gordon, British Columbia Ademeso, Kayode, Nigeria Amos, Collette, Australia Arho, Jokpogho, Nigeria Austin, Kevin, Australia Axford, Eric, Alberta Bagnall, Alex, Alberta Bartlett, Carol, Newfoundland/Labrador Becker, Markus, Germany Beier, Nicholas, Alberta Bonsu, Kwaku Anthony, Ivory Coast Bouliane, Natasha, Alberta Boyd, Larry, Alberta Bradbury, Keith, Newfoundland/Labrador Brosseau, Sean, Alberta Bruhjell, Darren, British Columbia Buchanan, Ron, Manitoba Butler, Roland, Newfoundland/Labrador Calder, Pat, Manitoba Caldwell, Jack A., British Columbia Capstick, David, Ontario Carlisle, Scott, Ontario Ceh, Anthony, British Columbia Champaigne, Denis, Ontario Clark, David, British Columbia Clarke, David, Alberta Collins, Peter, Australia Comeau, Jeanne, New Brunswick Connors, David, Ontario Cooney, Thomas Gregory, Australia

Cooper, Jay, Manitoba Coward, Stephen, United Kingdom Curtis, Alan, USA Da Silva, Fernando, Peru Daly, Mohamed, Tunisia Darling, Michelle, Alberta Davis, John, New Brunswick Deans, Ty, British Columbia Deck, Steven, Ontario Dembele, Yahaya, Ivory Coast Dombek, Jerome, USA Doney, Doug, New Brunswick Douglas, Ian, USA Du Preez, Niel, South Africa Duxbury, Patrick Henton, Northwest Territories Ericsson, Patrik, Sweden Adaba Eucharia, Georgewill, Nigeria Evanochko, Don, Alberta Ewefunso, Akintunde, Nigeria Farrell, James, Newfoundland/Labrador Firth, Andrew Robert, Australia Fisscher, Harry, Netherlands Freeman, Sean, USA Gage, Shaun, Newfoundland/Labrador Gagnon, Rob, Ontario Gall, Chris, Alberta Gauthier, Alana, Manitoba Gear, Diane, Newfoundland/Labrador Gillis, Jim, Nova Scotia Gillstrom, Gregory, British Columbia

Glass, Tony, British Columbia Gogowich, Randy, Alberta Gradim, Rafael, Venezuela Griebel, Ernst, Australia Griffiths, Craig, Sweden Guibulacho, Kirondina, Mozambique Gupta, Manuj, Alberta Handley, Matthew, South Africa Harrison, Don, British Columbia Holden, Grenn, Alberta Hood, Michael, Australia Hunt, Gavin, United Kingdom Hyska, Elliott, Manitoba Isles, Dudley, Australia Jastrebski, Jay, Alberta Kachurowski, Amy, Alberta Kahlert, Daniel, British Columbia Kelly, Mark, Australia Kennedy, Scott, Ontario Kerr, Andrew, Newfoundland/Labrador Killam, Luke, Alberta Kivari, Dan, Ontario Koney, Sulemanu, Ghana Koskinen, Jarkko, Finland Kovacs, Anthony, British Columbia Kow, Weng, USA Kruger, Fritz, Alberta Lacerte, Roger, Burkina Faso Lavender, Theresa, Alberta Lawrence, Brian, Alberta Lee, Dan, Newfoundland/Labrador Leung, Albert, British Columbia

A look back in time 35 YEARS AGO… • There was much activity at the branch level—scholarships were handed out, branch executives were appointed or in the process of being nominated, and guest lecturers spoke to branch members about revegetation of tailings and meteorite recovery.

• If you were in the market for grinding balls or billets, this ad most likely caught your attention.

• D.F. Sherwin authored a paper on the potential for oil and gas reserves in proximity to the Nova Scotia energy market.

The above was taken from the November 1972 issue of CIM Bulletin.

Liebe, Markus, Alberta Liske, Calvin, Manitoba Lubbe, Rian, South Africa Lucas, Stephen, Ontario Lundstrom, Mari, Finland Lysay, Georgia, British Columbia MacLachlan, Malcolm, British Columbia Magdic, Ivan, Alberta Makus, Lyle, Alberta Matthews, Dick, British Columbia McCoy, Tannice, British Columbia McDermid, Gordon, Ontario McElman, Chris, British Columbia McIntire, Hal, USA McKay, Dawn, Ontario McMullin, John, Nova Scotia Mir, Sabeen, Pakistan Monrad, Eric David, British Columbia Morrison, David, Australia Muneer, Naseer, Alberta Murr, Dennis L., USA Nabil, Ben Jannet, Tunisie Nakatsuka, Caroline, British Columbia Neilsen, Larry, Australia Newel, Ken, Alberta Ng, Shindy, British Columbia Nicholas, Grant, United Kingdom Noer, Michelle, Alberta Norman, Krista, Newfoundland/Labrador Nurminen, Elli, Finland Olukoye, Babatunde O., Sweden Osehob, Emela Rapheal, Nigeria Osmond, Chad, Alberta Pang, Gabrielle, British Columbia Paré, Pascal, British Columbia Pascoe, Christopher, USA Paulin, Jean Guy, New Brunswick Payeur, Sylvain, Ontario Peerless, Sarah, British Columbia Poirier, Nathalie, New Brunswick Potvin, Gerry, Ontario Proctor, Paul, Nova Scotia Rabb, Trevor, Alberta Rayani, Karim, British Columbia Reeleder, Rob, British Columbia Reggin, Lara, British Columbia Reid, Genice, Newfoundland/Labrador

Riggle, Robert, Alberta Roche, Colleen, British Columbia Rose, Dave, Nova Scotia Salghi, Abdelkrim, Morroco Schimmel, Ronald, Netherlands Scott, Nikki, British Columbia Scott, Roxanne, British Columbia Sellami, Mohamed, Morroco Seymour, Carol, Newfoundland/Labrador Shearing, Lorne, Alberta Shectman, Parker, British Columbia Shefford, David, Manitoba Shephard, John, British Columbia Shipp, Jerry, USA Shvyd’ko, Petro, Ukraine Simoneau, Barrie, Manitoba Smears, Monica, Alberta Smiley, Dustin, British Columbia Ste-Croix, Stephane, New Brunswick Steele, Rod, Alberta Stouros, Sam, Ontario Struck, Wilf, British Columbia Strueby, Brad, Alberta Szpak, Joseph, Alberta Tadolini, Stephen, USA Thiel, Rick, Alberta Thompson, Randall, USA Todd, Scott, Australia Trosko, Val, Alberta Truscott, David, Ontario Utley, Jim, British Columbia Van Alphen, Peter Pascal, Ontario Vance, Matthew, Alberta Verreault, Martin, New Brunswick Villaescusa, Ernesto, Ontario Waddington, Mike, Alberta Wang, Bing, British Columbia Wearing, Grant, Alberta Wendell, Daniel, Manitoba Yanske, Thomas, USA Yim, Gil Jae, Korea Young, Lori, USA Ziemski, Marcin, Australia

Corporate Delkor Services

November 2007 | 71

cim news CIM MES hosts senior Chinese mining officials In August, the CIM Management and Economics Society hosted a one-day seminar for senior officials of the Chinese Ministry of Lands and Resources. The senior officials were on a training program in Canada, through the auspices of Queen’s University, and had training stints in Kingston, Ottawa, Vancouver, and Toronto.

In Toronto, Fasken Martineau DuMoulin sponsored the event, with Keith Spence, MES Chairman, and

Christina Wilton and Wei Wei as event co-organizers.

The program included a Toronto Stock Exchange visit and the following presentations: A perspective on the risks and issues when investing in mining projects in China (G. Ho Yuen, Fasken Martineau); Basics of evaluation and valuation of mining projects using options (M. Samis, AMEC); How a company does metal outlook (A. Roebuck, Teck Cominco);

Disclosure and market regulations for the Canadian mining sector (D. McCombe, Scott Wilson Roscoe Postle); and How banks analyze risks in financing mining projects (W. McNeil, Scotia Bank/Scotia Capital).

The event was part of MES’s strategy to become a key source for continuing education in the mining sector, in the areas of mineral economics, mining management issues, and mine financing. CIM

Chinese senior mining officials along with presenters and MES executive

Obituaries CIM expresses its sincere condolences to the families and friends of the following members: Gerald Laverne Colborne died on July 27, 2007. He joined CIM in 1967 and became a life member 1989.

W. Charles Cooper joined CIM in 1967 and became a life member in 1995.

Gordon Alfsen Griffiths died this past August. He graduated from the mining faculty of the University of Toronto in 1951.

Rory Malcolm Francis Kempster passed away on September 11, 2007.

An active member of the CIM New 72 | CIM Magazine | Vol. 2, No. 7

Brunswick Branch, he served as the branch’s chair in 2001-2002, has been instrumental in documenting the branch’s history, has been involved in the branch’s educational projects, and most recently, served as the branch’s secretary.

David Landriault died this past August. He joined CIM in 1995 and was a member of the CIM Sudbury Branch. More recently, he served on the organizing committee of the 9th International Symposium on Mining with Backfill.

Kenneth E. Mathews passed away. He joined CIM in 1974 and became a life member in 2001.

Thomas H. Patching joined CIM in 1937. In 1971-1972, he served as president of the Institute and in 1979, he became a life member. He received the Coal Award in 1985 and a CIM Fellowship in 2000.

William Gordon Wegenast passed away on June 12, 2007. He joined CIM in 1960 and became a life member in 1987.

MINING INDUSTRY RESEARCH SERVICES

Quebec Branch golf tournament a huge success The Quebec Branch’s “Geogolf” tournament, held on September 7 at the Lac St-Joseph Golf Club, attracted 47 participants and plenty of sun. Organized with the help of Gilles Mahoney, the tournament received generous donations from the Quebec Mining Association, the Lac St-Joseph Golf Club, Forages Chibougamau Ltée, Gestion Sodémex inc., Jeffrey Mine Inc., Belle-Isle traduction technique inc., les traductions techniques Blais et Leroux, CIM National, and the CIM Quebec Branch. The winning team included Jacques Bonneau and Paul Archer of Mines d’Or Virginia, Yvon Trudeau of SOQUEM, and Steve Larouche of Forages Chibougamau. CIM

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De gauche à droite : Rock Gagnon, président de la section Québec de l’ICM, Steve Larouche, Yvon Trudeau, Jacques Bonneau et Paul Archer

Tournoi Géogolf 2007 Le 7 septembre 2007 avait lieu le tournoi Géogolf au Club de golf du lac St-Joseph. La section Québec de l’ICM en assurait l’organisation avec l’aide d’un bénévole, M. Gilles Mahoney, retraité du ministère des Ressources Naturelles et de la Faune. Celui-ci a su trouver de généreux donateurs : Association minière du Québec inc, Club de Golf du Lac St-Joseph inc., Forages Chibougamau Ltée, Gestion Sodémex inc., Mine Jeffrey inc., Belle-Isle traduction technique inc., les traductions techniques Blais et Leroux, ICM national et la section Québec de l’ICM. L’équipe gagnante était composée de Jacques Bonneau, Paul Archer de Mines d’Or Virginia, Yvon Trudeau de SOQUEM inc. et Steve Larouche de Forages Chibougamau. Tous les 47 participants ont apprécié le temps exceptionnellement chaud cette année et la beauté du site. CIM

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www.mch.cl

November 2007 | 73

CIM Distinguished Lecturers One of this year's CIM Distinguished Lecturers, Dave Lentz, is renowned in the Canadian geological community as both a scientist and a top-notch professor.

Many groups have already contacted CIM to book his presentation, titled Developing the orogenic gold deposit model: insights from R&D for exploration success. Don't hesitate—ensure he comes to your hometown this year.

CIM met up with Dave Lentz to discuss the focus of his presentation.

CIM You're well-known in the Canadian minerals industry. What is your background experience?

Lentz I have been lucky to have worked for the mineral exploration industry, the Mineral Resources Division of the Geological Survey of Canada, as mineral deposits geologist for the New Brunswick Geological Survey, and as an academic here at UNB since 2000 with student-based research projects in most provinces and territories of Canada.

CIM What attracted you to becoming a CIM Distinguished Lecturer?

Lentz My Distinguished Lecturer presentation highlights the research developments in gold deposits, especially in Canada, and how exploration success can continue to be enhanced by collaborative NSERC- and/or industry-supported R&D. It is a chance for me to wave the flag about the increasing importance of continued professional development and the derivative cooperative research that results from the mutual recognition of how each geoscience group supports each other. CIM is all about professional development, related networking, and friendship.

CIM Please share an example of the information your audiences will learn about.

Lentz Targeted appied or fundamental research tends to distill the complexities of a system down to essential components that are important to understanding a system in detail and then utilizing that simplified knowledge to explore more effectively and efficiently. In this presentation, this is applied to goldforming systems, but is true for all types of knowledge.

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CMMF Learn more from Dave Lentz's presentation…

FCMM contact rpillo@cim.org to book him for your branch today!

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Thank you!

We would like to thank our sponsors for their valuable contributions Premium

Corporate

Event

2 Colour: Logo = Pantone 3025 Text = Black

Thank you to our exhibitors for their participation 3M Canada Air Liquide Auburn Group Buehler Canada Inc. CESL CIM Corroco International Industrial Co. Ltd. Decisioneering Inc. Desert King Intl.

EcoTec Inc. Falcon Foundry Gecamin Ltd. Hatch Heath & Sherwood IBC Advanced Technologies IMP Group Pty Ltd. Jogmec

Larox Corporation Limpact International McGill University Metalex GmbH Mettop Outotec (Canada) Ltd. P.I. International Praxair Canada Inc. Quadra Chemicals RHI-AG Romquest Technologies SGS Minerals Services Technologias Cobra S.A. TMS Université Laval Vulcan Refractories WorleyParsons Canada Xstrata Technology

AROUND THE WORLD CIM EVENTS Northern Gateway Branch Meeting–Lecture Jim Gowans, president and CEO, De Beers Canada (guest speaker) December 11 North Bay, Ontario Contact: Roy Slack Tel.: 705.472.3381 Fax: 705.497.0078 Email: roy.slack@cementation.ca Calgary Branch Technical Meeting December 12 Calgary, Alberta Contact: Andrew Hickinbotham Tel.: 403.267.3891 Email: cimcalgary@gmail.com Canadian Mining Hall of Fame Twentieth Annual Induction Ceremony in conjunction with CIM and PDAC January 17, 2008 Toronto, Ontario Contact: Donald Worth Email: cmhf.info@sympatico.ca Website: www.mining.ca/halloffame Sudbury Branch General Membership Meeting January 17, 2008 Sudbury, Ontario Contact: George Darling Tel.: 705.682.3270 Email: gdarling@srk.com CMP Conference 40th Annual Canadian Mineral Processors Operators’ Conference/40e Conférence des minéralurgistes du Canada January 22-24, 2008 Ottawa, Ontario Contact: Janice Zinck Tel.: 613.995.4221 Fax: 613.996.9041 Email: jzinck@nrcan.gc.ca Website: www.c-m-p.on.ca MEMO Maintenence Engineering-Mine Operators’ Conference/ Colloque sur l’ingénierie de maintenance et les exploitations minières February 24-28, 2008 Val-d’Or, Québec Contact: Chantal Murphy, CIM Tel.: 514.939.2710, ext. 1309 Fax: 514.939.2714 Email: cmurphy@cim.org CIM Conference and Exhibition—Edmonton 2008 May 4-7, 2008 Edmonton, Alberta Contact: Chantal Murphy, CIM Tel.: 514.939.2710, ext. 1309 Fax: 514.939.2714 Email: cmurphy@cim.org

American Mining Hall of Fame Banquet December 1 Tucson, Arizona Contact: Jean Austin, office manager Tel.: 520.577.7519 Fax: 520.577.7073 Email: admin@miningfoundationsw.org CIRMA1 December 2-4 Algiers, Algeria Contact: Sarah Ashmore Tel.: +44.207.596.5053 Fax: +44.207.596.5106 Email: sarah.ashmore@ite-exhibitions.com Website: www.cirma-algeria.com SWEMP2007 December 11-13 Bangkok, Thailand Contact: Raj Singhal, symposium chair Tel.: 403.239.3849/403.461.2981 Fax: 403.241.9460 Email: singhal@shaw.ca Website: www.mpes-cami-swemp.com 2008 SME Annual Meeting and Exhibit February 24-27, 2008 Salt Lake City, Utah Contact: Kathy O'Neil Toll-free: 800.763.3132 Fax: 303.979.3461 Email: meetings@smenet.org Website: www.smenet.org/meetings PDAC 2008 March 2-5, 2008 Toronto, Ontario Contact: Lisa McDougall Tel.: 416.362.1969 Fax: 416.362.0101 Email: lmcdougall@pdac.ca Website: www.pdac.ca First International Seminar on the Management of Rock Dumps, Stockpiles, and Heap Leach Pads March 5-7, 2008 Perth, Western Australia Contact: Josephine Ruddle, marketing manager Tel.: +61.8.6488.3300 Fax: +61.8.6488.1130 Email: acg@acg.uwa.edu.au Minerals North April 16-18, 2008 Smithers, British Columbia Contact: Christine Ogryzlo Tel.: 250.697.6368 Fax: 250.847.1601 Email: cogryzlo@telus.net Website: www.mineralsnorth.ca

November 2007 | 75

Celebrating 40 years!

40th

Annual Canadian

Mineral Processors Operators’ Conference

O

n behalf of the executive committee, I invite you to attend the 40th Annual Canadian Mineral Processors Operators’ Conference. This year is the 40th anniversary of the formation of the Canadian Mineral Processors and it is worth reflecting on the birth of the organization. The Canadian Mineral Processors started as a meeting for gold mill superintendents and metallurgists to share information between operating plants. No doubt these meetings were convened to try and squeeze every last ounce of efficiency out of the mills they represented. The price of gold through the period of formation of the group was still pegged at $35 per ounce, and the profitability at the mines was very dependent on innovation.

Today, 40 years later, the Canadian Mineral Processors Operators’ Conference has grown to encompass mineral processing professionals from all areas within the mining industry. Gold processing still garners significant attention in the technical program each year, but papers on base metals, oil sands, and industrial minerals are equally likely to be included. This year’s program includes about 40 technical presentations covering topics related to grinding, flotation, gold processing, and process control. This year’s technical program continues the fine tradition of excellence that is the hallmark of the Canadian Mineral Processors Operators’ Conference. Please visit our website for regular conference updates (www.c-m-p.on.ca).

Photo courtesy of Ottawa Tourism

Provisional Social Program Tuesday, January 22 Beer and Sandwich Social Hockey Cup Challenge Chairman’s Reception

Wednesday, January 23 Annual Business Meeting Reception Annual Banquet

Human resources continue to be a major focus for our industry as we grapple with the unprecedented need for skilled practitioners. Many of you are aware of the student program that is an integral part of our annual meeting. This year, with the support of our sponsors, over 20 students from major educational institutions with mineral processing programs will be brought to the annual conference. This will be your opportunity to meet these students, most of whom will eventually be our next generation of industry leaders.

The annual conference is one of the year’s premier opportunities to network with your colleagues and find out what’s shaking in the business. Over the years, I have personally benefited greatly from the insights that I have gained from the technical presentations and informal meetings with fellow processors. If there is one event this year that you should not miss, this is it.

So, pack your skates and enjoy the world-famous Rideau Canal, cheer for your favourite CMP hockey team, network with fellow professionals, and join us for the 40th Annual Canadian Mineral Processors Operators’ Conference.

See you there, JOHN FOLINSBEE 2008 CMP CHAIRMAN

November 2007 | 77

40 ans, ça se fête !

annuelle des minéralurgistes du Canada 40e Conférence

A

u nom du comité exécutif du CMP, je vous invite à participer à la 40e Conférence annuelle des minéralurgistes du Canada (CMP). Cette année marque le 40e anniversaire des Minéralurgistes du Canada et nous profitons de l’occasion pour souligner l’origine de l’organisation. Les Minéralurgistes du Canada ont débuté lors d’une rencontre des superintendants et métallurgistes des concentrateurs d’or afin de partager l’information entre les usines. Il n’y a aucun doute que l’objectif de ces rencontres était d’essayer d’extraire la toute dernière once des usines qu’ils représentaient. Le cours du prix de l’or durant la formation du groupe était de 35 $/l’once et la profitabilité des mines était très dépendante de l’innovation.

Aujourd’hui, après plus de 40 ans, les Minéralurgistes du Canada ont pris de l’expansion et réunissent aussi les professionnels du traitement des minerais de tous les domaines de l’industrie minière. Chaque année, les procédés aurifères attirent encore une attention particulière dans le programme technique, mais des articles sur les métaux de base, les sables bitumineux et l’industrie des minéraux seront aussi probablement au programme dans des proportions semblables.

Cette année, le programme inclut environ 40 présentations techniques couvrant des sujets reliés au broyage, à la flottation, aux procédés aurifères et au contrôle des procédés. Le programme technique de cette année continue sa tradition d’excellence qui représente bien la conférence des Minéralurgistes du Canada. Veuillez visiter notre site Web pour des mises à jour concernant la conférence (www.c-m-p.on.ca).

Les ressources humaines continuent d’être un enjeu majeur dans notre industrie puisqu’elle doit faire face à un manque sans précédent de maind’œuvre qualifiée. Plusieurs d’entre vous sont conscients que le programme étudiant fait partie intégrante de notre conférence annuelle.

Cette année, avec le support de commanditaires, 20 étudiants provenant des principales institutions d’enseignement offrant des programmes miniers participeront à la conférence à Ottawa. Ainsi, vous pourrez rencontrer les étudiants, qui pour la plupart, deviendront éventuellement la prochaine génération de dirigeants dans notre industrie.

La conférence annuelle des Minéralurgistes du Canada est l’une des premières opportunités de réseautage de l’année avec vos collègues et vous permettra de découvrir les nouvelles tendances dans notre industrie. Au fil des ans, il m’a été possible d’approfondir mes connaissances lors des présentations techniques et des rencontres informelles avec mes collègues. S’il y a un événement cette année que vous ne devriez pas manquer, c’est celui-ci.

Alors, apportez vos patins et profitez de cette occasion pour patiner sur le canal Rideau de renommée mondiale, encourager votre équipe de hockey préférée du CMP, effectuer du réseautage avec des professionnels de l’industrie et joignez-vous à nous pour la 40e conférence annuelle des minéralurgistes du Canada.

Au plaisir de vous rencontrer, JOHN FOLINSBEE PRÉSIDENT CMP 2008

78 | CIM Magazine | Vol. 2, No. 7

Accommodations Special rates of $175 (single/double occupancy) and $205 (deluxe accommodations) have been negotiated for a block of rooms at the Westin Hotel (reference the CMP Conference). For reservations, contact the Westin Hotel, Tel.: 613.560.7000; Fax: 613.560.2707, or visit www.c-m-p.on.ca. The block of rooms is only guaranteed until January 2, 2008, so book your room early.

Registration The fees for this year’s conference are $425 for CIM/AIME/TMS members, $100 for CIM retired members (60+), and $575 for non-members (GST included). The non-member rate includes a one-year membership to CIM. Registration includes access to the three-day conference, coffee breaks, the Tuesday luncheon and evening social reception, the Wednesday evening reception/dinner, as well as a copy of the proceedings. Registration can be done online at www.c-m-p.on.ca. Be sure to indicate which social events you want to attend.

Pre-registered delegates can obtain their registration kits at the conference registration desk, located on the 4th floor of the Westin Hotel, Monday evening between 7 p.m. and 10 p.m. and on Tuesday to Thursday between 7 a.m. and 3 p.m. New registrations will be taken during these times.

Winterlude. Photo courtesy City of Ottawa

General Information The 40th Annual Canadian Mineral Processors Operators’ Conference will be held in the Confederation Ballrooms at the Westin Hotel in Ottawa on January 22–24, 2008. The conference will feature presentations on various aspects of mineral processing, including plant design and plant improvements, grinding, dewatering, flotation instrumentation and process control, mineral separation and gold.

Note: Registration forms must be received by January 15, 2008. After this date, delegates will have to register at the conference. Requests for refunds must be made, in writing, prior to January 15, 2008. An administration fee of $100.00 will be charged for late and/or cancelled registrations.

Authors Authors, session chairs, and regional representatives must register as conference delegates. A speaker’s breakfast will be provided the day of their presentation at 7 a.m. tentatively held in the Quebec Room. For information contact Al Kuiper, Tel.: 613.992.8147, Email: akuiper@nrcan.gc.ca.

Hébergement Un nombre limité de chambres a été négocié avec l’Hôtel Westin au tarif de 175 $ en occupation simple/double et 205 $ pour une chambre de luxe.

Veuillez noter que les chambres sont retenues jusqu’au 2 janvier 2008. L’an dernier, ce groupe de chambres a été épuisé dès décembre. Veuillez donc réserver votre chambre le plus tôt possible. Les réservations peuvent être faites directement avec l’Hôtel Westin au 613.560.7000 ou par télécopieur au 613.560.2707 ou à www.c-m-p.on.ca. Si vous réservez par téléphone, prière d’indiquer que vous participez à la conférence des minéralurgistes du Canada.

Inscription Les frais d’inscription sont de 425 $ pour les membres de l’ICM, TMS et AIME, 100 $ pour les membres retraités (60+) de l’ICM et de 575 $ pour les autres participants (TPS incluse). Le tarif non-membre comprend un abonnement d’un an à l’ICM. Ces frais donnent droit à la conférence, à une copie des comptes rendus, aux pauses café, au dîner le mardi et à la réception sociale en soirée ainsi qu’à la réception/souper le mercredi soir.

L’inscription à la conférence et aux activités sociales doit se faire en ligne à : www.c-m-p.on.ca.

Tous les délégués inscrits à l’avance pourront recevoir leur trousse d’inscription au bureau d’inscription, 4e étage de l’Hôtel Westin, le lundi entre 19h et 22h et de mardi à jeudi de 7h à 15h. Les autres délégués qui désirent participer à la conférence pourront également s’inscrire à cet endroit, aux mêmes heures.

N.B.: Les formulaires de pré-inscription doivent être reçus avant le 15 janvier 2008. Les demandes de remboursement doivent être faites par écrit avant le 15 janvier 2008. Après cette date, des frais de 100 $ s’appliqueront aux inscriptions de même qu’aux inscriptions annulées.

The Ottawa River. Photo courtesy City of Ottawa

Renseignements généraux La 40e Conférence annuelle des minéralurgistes du Canada se tiendra dans la salle de bal Confédération à l’Hôtel Westin du 22 au 24 janvier 2008. La conférence comprendra des présentations sur divers aspects des minéralurgiques tels que la conception des installations et amélioration des usines, broyage, déshydratation, instruments de flottation, contrôle des procédés, séparation des minéraux et de l’or.

Auteurs Tous les auteurs, présidents de session et représentants régionaux doivent s’inscrire comme délégués. Un petit déjeuner sera servi le jour de leur présentation à 7h dans le Salon Québec (à confirmer). Les auteurs peuvent contacter Al Kuiper au 613.992.8147 ou par courriel à akuiper@nrcan.gc.ca pour plus d’information sur les présentations.

November 2007 | 79

PROVISIONAL TECHNICAL PROGRAM PLENARY SESSION

FLOTATION

Chair’s opening remarks and announcements John Folinsbee Engaging First Nations communities Chief Glenn Nolan, 2007 CIM Distinguished Lecturer Award Winner Ore processing business experiences in Russia 2005-07 John Starkey

Myra Falls flotation circuit reconfigured from Cu-Zn to Cu-Pb-Zn T. Yeomans Improvements in column flotation through the use of Microcel™ spargers at Antamina H.M. Lizama, J. Carrión and D. Estrella The link between pulp zone hydrodynamic characteristics and froth stability in a 100 m3 flotation column G. Bartilocci, M. Ourriban, A. Lockhart, J. Finch, A. Fortin and G. Goyette Controlling process water chemistry to improve the flotation of highiron phosphate ores at Agrium—Kapuskasing phosphate operations B. Nanthakumar, D. Grimm and M. Pawlik Removal of organic carbon with a Jameson cell at Red Dog Mine T. Smith Improving fine lead and silver flotation recovery at BHP Billiton’s Cannington Mine B. Holloway, G. Clarke, B. Lumsden Flotation circuit analysis at Zinifex Century Mine S. Schwarz, I. Crnkovic, D. Alexander Neumatic flotation G cell—a very interesting experience for molybdenum plant in Chile S. Sánchez-Pino

INSTRUMENTATION AND PROCESS CONTROL

PLANT DESIGN AND PLANT IMPROVEMENTS Mineral processing education in the United States K. Altman Process improvement update at Brunswick Mine J. Roberts, C. Deriden and J.-G. Paulin Optimization and increasing throughput at Jacobina A. Kozak Horses for courses—tailoring front-end designs to project requirements P. Staples, P. Messenger and G. Lane Save time and money in industrial mineral plant startups M. Rulff and T. Holmes

GRINDING Fine grinding of a sparsely disseminated sulphide ore A.O. Orumwense and M. Boisclair A small-scale test to determine work index for high-pressure grinding rolls D. Bulled and K. Husain Toward the 24-hour large SAG mill reline J. Russell

DEWATERING Raw water supply: the experience of Cerro Verde A.J. Gunson, B. Klein and M. Veiga Commissioning of a thickener feed de-aeration system at the Xstrata Nickel Raglan 0peration G. Comeau

MillMapper—a tool for mill liner condition monitoring and mill performance optimization J. Franke and D. Lichti Application of non-intrusive sonar array-based technology to solve unique and difficult measurement situations C. O’Keefe and J. Poplawski Advanced control for mineral processing, better than expert systems R.K. Jonas Evolution of SAG mill process control at the Xstrata Nickel Raglan operation E. Bartsch, G. Comeau and C. Hardie

MINERAL SEPARATION The latest developments of EPD and HS technologies L.J. Cabri, V.N. Rudashevsky and N.S. Rudashevsky

GOLD High-efficiency gold recovery process using nanotechnology A. Aledresse, L. Amaratunga and L. Mercier Training to process analysis methods using a gold leaching simulator C. Bazin, D. Hodouin, M. Reza Khalezi, S. Bellec, J. Egan and C. Duchesne Activated carbon’s use in gold adsorption and recovery (presented with consideration to the operator’s point-of-view) M. Drozd Bio-treatment of refractory gold ore in Obuasi Mines, Ghana J.K. Afidenyo, W.-T. Yen and J. Osei-Owusu Direct cyanidation of a gold ore containing aurostibe G. Deschênes, C. Xia, M. Fulton, L.J. Cabri and J. Price Application of the SART process to heap leaching of gold-copper ores at Maricunga S. Bustos, K. Ford, C. Fleming and R. Henderson Gold recovery from Murgor Resources’ ores using flotation S. Kelebek and E. Yalcin

Keep up to date on new developments by visiting www.c-m-p.on.ca Tenez-vous au courant des nouveaux développements en visitant www.c-m-p.on.ca 80 | CIM Magazine | Vol. 2, No. 7

du 24 au 27 février 2008 • Val-d’Or, Québec • February 24 to 27, 2008 Photo courtesy of Aurizon Mines Ltd.

Séance plénière

Plenary

Production et maintenance : une synergie gagnante pour l’avenir

Operation and Maintenance: A winning synergy for the future

Une plénière réunissant cinq personnalités reconnues pour leur expérience par les gens de l’industrie minière se déroulera lors de la deuxième journée du programme technique. Ces experts du domaine minier ont accepté de partager leur vision sur la synergie vitale et essentielle des fonctions de maintenance et d’exploitation.

A plenary session featuring five distinguished mining industry veterans is scheduled for the second day of the technical program. These mining experts will share their vision of a vital synergy essential for successful operations and maintenance practices.

Pour bien encadrer ce panel de vedettes, Jacques Nantel, président, Nantar Engineering, agira à titre de modérateur. Son expertise et ses connaissances du domaine minier permettront de stimuler les discussions entre les panélistes et l’assistance qui sera appelée à participer activement. Voici nos vedettes, incluant le futur Chef de l’exploitation de IAMGOLD :

Our panel of keynote speakers will be led by Jacques Nantel, president, Nantar Engineering. His expertise and knowledge of the mining industry will allow for a stimulating exchange between the panellists and those in attendance, who will be invited to actively participate. Our keynote speakers will include the future COO of IAMGOLD as well as the following:

Daniel Racine, vice-président, exploitation, Mines AgnicoEagle Claude Lemasson, directeur général, projets, Canada et États-Unis, Goldcorp Inc. Neil Miller, directeur, offre de services, États-Unis et Canada, Sandvik Andrew Thorne, directeur général, division des services de combustible, Ontario, Cameco Corporation

Daniel Racine, vice president of operations, Agnico-Eagle Mines Claude Lemasson, general manager, projects, Canada/USA, Goldcorp Inc. Neil Miller, manager, maintenance and performance contracts, USA and Canada, Sandvik Andrew Thorne, general manager, fuel services division, Ontario, Cameco Corporation

Bâtir ensemble vers 2020 Visites minières Des visites minières seront offertes le jeudi 28 février. Les places seront limitées à 12 participants par visite, l’inscription préalable sera nécessaire. Les vêtements et équipements de protection individuelle seront disponibles sur place. Les départs et les retours se feront aux différents hôtels de la ville.

Départ : 6h Retour : 13h Remarque : Le transport par autobus sera d’une durée approximative de 50 minutes. Le prix (65 $) inclut le transport en autobus (aller-retour) et un léger goûter au retour dans l’autobus.

Visite 3 : Agnico-Eagle, Mine LaRonde Thème : • Fonçage d’un puits interne • Contrôle de terrain, suivi séismique en mine profonde Détails : • Visite des installations reliées à l’excavation d’un puits interne • Présentation sur le contrôle de terrain • Présentation des installations séismiques • Présentation des défis reliés à l’exploitation d’une mine profonde • Visite de la section profonde de la mine Départ : 6h Retour : 13h Remarque : Le transport par autobus sera d’une durée approximative de 50 minutes. Le prix (65 $) inclut le transport en autobus (aller-retour) et un léger goûter au retour dans l’autobus.

Visite 1 : IAMGOLD, Mine Mouska Thèmes : • Formation et gestion de personnel • Exploitation d’un gisement filonien Détails : • Présentation du programme de recrutement, de formation et de fidélisation du personnel appliqué aux mines Mouska et Géant Dormant • Présentation de la géologie locale • Historique de l’exploitation • Visite sous terre Départ : 6h Retour : 13h Remarque : Le transport par autobus sera d’une durée approximative de 1h15. Le prix (65 $) inclut le transport en autobus (aller-retour) et un léger goûter au retour dans l’autobus.

Visite 4 : Agnico-Eagle, Mine Goldex

Visite 2 : Agnico-Eagle, Mine LaRonde

Thème :

• Visite générale des installations de surface et souterraines Détails : • Usine de traitement en phase de démarrage • Installation souterraine pour méthode de minage en vrac à grand volume Départ : 7h Retour : 12h Remarque : Le transport par autobus sera d’une durée approximative de 10 minutes. Le prix (65 $) inclut le transport en autobus (aller-retour).

Thème : • Programme d’entretien préventif d’équipement • Treuils et câbles Détails : • Présentation du programme d’entretien préventif des équipements • Visite du treuil de surface • Visite du treuil interne • Visite couvrant les aspects spécifiques à l’entretien • Visite des installations sous terre (garage, entrepôt, etc.)

MEMO Trade Show

Salon commercial de MEMO

Approximately 50 companies will showcase their products and services at this year’s MEMO Conference. The trade show is a great opportunity to drum up some business while reconnecting with suppliers, contractors, and consultants. Look no further— the MEMO trade show is where you’ll find what you need.

Environ 50 compagnies mettront en vedette leurs produits et leurs services durant le colloque MEMO. Le salon commercial est l’occasion parfaite pour faire de nouveaux contacts et pour renouer des liens avec des fournisseurs, des entrepreneurs et des consultants. Ne cherchez pas plus loin, le salon commercial de MEMO a tout ce qu’il vous faut.

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Working together towards 2020 Mine tours Mine tours will be held on Thursday, February 28. Places are limited to 12 participants per visit and pre-registration is required. Individual safety equipment and clothing will be available on site. Departures and return points will be at the various conference hotels.

Tour 1—IAMGOLD, Mouska Mine Themes: • Personnel training and management • Narrow-vein mine operations Details: • Presentation of the recruitment, training, and employee loyalty programs at the Mouska and Géant Dormant mines • Presentation on local geology • Mining history • Underground visit Departure: 6 a.m.

Return: 1 p.m.

Note: Transportation by bus will take about 1 hour and 15 minutes. The price ($65) includes transportation to and from the mine and a light lunch on the bus.

Tour 2—Agnico-Eagle Mines, LaRonde Mine Theme: Details:

• Preventive maintenance of equipment program • Hoists and cables • Presentation on the preventive maintenance of equipment program • Visit to the surface hoist • Visit to the internal hoist • Visit covering specific aspects of maintenance • Visit to underground installations (garage, warehouse, etc.)

Departure: 6 a.m.

Return: 1 p.m.

Note: Transportation by bus will take about 50 minutes. The price ($65) includes transportation to and from the mine and a light lunch on the bus.

Tour 3—Agnico-Eagle Mines, LaRonde Mine Theme:

• Sinking an underground shaft (winze) • Deep mining ground control and seismic monitoring Details: • Visit to the shaft-sinking installations • Presentation on ground control • Presentation on seismic installations • Presentation on challenges in operating a deep mine • Visit to the deep section of the mine Departure: 6 a.m.

Return: 1 p.m.

Note: Transportation by bus will take about 50 minutes. The price ($65) includes transportation to and from the mine and a light lunch on the bus.

Tour 4—Agnico-Eagle Mines, Goldex Mine Theme: Details:

• Visit to the surface and underground installations • Visit to mill at the startup stage • Visit to underground installation for high-volume bulk mining Departure: 7 a.m.

Return: noon Note: Transportation by bus will take about 10 minutes. The price ($65) includes transportation to and from the mine.

Exposants • Exhibitors 3M Canada Company 102 AB Cable 17 Adria Manufacturing Inc. 406 Association minière du Québec 1 Atlantic Industries Limited 201 Atlas Copco Construction 204 and Mining Canada BASF Construction Chemicals 401 Canada Kalprotect Inc. 23 Chess Controls Inc. 312 CIM - Canadian Institute of Mining, CIM Metallurgy and Petroleum CMAC - THYSSEN Mining Group Inc. 402 Cogep inc.

310 308 Cubex Limited DSI Mining Products 110 Dyno Nobel Canada Inc. 107 101 Équipements K.N. 407 Équipements miniers 2000 Fournier Béton - Shotcrete Gatorpass 108 Gaz Metropolitain CIM1 5 Groupe Stavibel Inc. 9 Hewitt Equipment Ltée HLS HARD-LINE Solutions Inc. 409 Industrial Fabrication Inc. 309 106 InnovExplo Inc. John Meunier Inc. 311 Laboratoire de recherche Télébec 405 Mobilité en communications souterraines Les Systèmes Semco Limitée 25 Machines Roger International Inc. 7

MacLean Engineering & Marketing Co. Limited Mécanicad MEGLAB Mine Design Technologies Mine Site Technologies Multiurethanes Natural Resources Canada - CANMET MMSL and MTB Nedco Optimine OSIsoft Petro-Canada Lubricants POLARIS Laboratories, LLC Pompaction Inc. PRO-AB Equipments Provent RMS Enviro Solv Inc. Sandvik Mining and Construction TEMA Isenmann, Inc. Terex Mining Tracks & Wheels Equipment Brokers Inc. Victaulic Walden Equipment Wardrop Engineering Wilson Mining Products Wolseley Canada / Fusionex YieldPoint Inc.

210 208 416 304 314 19 3 27 305 202 214 203 109 412 413 302 400 13 306 205 403 21 15 313 301 105

November 2007 | 83

Programme social Le dimanche 24 février Cocktail de bienvenue Tous les délégués sont invités au cocktail de bienvenue « Saucisses et bières » à la cafétéria de la polyvalente Le Carrefour de 18h30 à 22h. Cet événement est offert gratuitement aux délégués.

Le lundi 25 février Déjeuner dans le salon commercial Tous les délégués et exposants sont invités à dîner ensemble au salon commercial, dans la cafétéria de la Polyvalente Le Carrefour de 12h à 13h45. Le déjeuner est inclus avec les frais d’inscription. Des billets additionnels sont disponibles à l’inscription au coût de 20 $.

Souper spectacle Tous les délégués et leurs invités sont conviés à un souper mettant en vedette des produits du terroir local suivi d’un spectacle de haute qualité avec notre invité tout droit arrivé de Las Vegas, M. André-Philippe Gagnon. Le gala aura lieu à l’Hôtel Forestel débutant par le cocktail à 18h et suivi par le souper de 19h à 22h30. Le coût du billet est de 90 $ pour les délégués et 125 $ pour leurs invités et les exposants. Un service de navettes sera en place entre les hôtels suivants : Hôtel-Motel Continental, le Comfort Inn, Hôtel-Motel Prélude et le Motel L’Escale.

Les mardi et mercredi 26 et 27 février Déjeuner dans le salon commercial Tous les délégués et exposants sont invités à déjeuner ensemble au salon commercial, dans la cafétéria de la Polyvalente Le Carrefour de 12h à 13h45. Le déjeuner est inclus avec les frais d’inscription. Des billets additionnels sont disponibles à l’inscription au coût de 20 $.

Social program Sunday, February 24 Welcoming Reception All delegates are invited to the “Beer and Sausage” Welcoming Reception in the Le Carrefour High School cafeteria, from 6:30 p.m. to 10 p.m. This event is free for delegates.

Monday, February 25 Lunch in the Trade Show All delegates and exhibitors are invited to have lunch together in the Trade Show, in the Le Carrefour High School cafeteria, from noon to 1:45 p.m. The luncheon is included with registration. Additional tickets are available for $20 at the registration desk.

Gala Dinner All delegates and their guests are invited to a supper featuring terroir products, followed by a fantastic show with AndréPhilippe Gagnon, straight from Las Vegas. The Gala will be held at the Forestel Hotel, beginning with a cocktail at 6 p.m. and the dinner from 7 p.m. to 10:30 p.m. Tickets are $90 for delegates and $125 for guests and exhibitors. There will be a shuttle service to and from the following hotels: Hotel-Motel Continental, Comfort Inn, Hotel-Motel Prélude, and Motel L’Escale.

Tuesday and Wednesday, February 26 and 27 Lunch in the Trade Show All delegates and exhibitors are invited to have lunch together in the Trade Show, in the Le Carrefour High School cafeteria, from noon to 1:45 p.m. The luncheon is included with registration.

Additional tickets are available for $20 at the registration desk.

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Programme technique préliminaire • Provisional technical program Lundi | Monday | AM1 Ouverture • Welcoming Remarks Ebe Scherkus, président et directeur de l'exploitation, Mines Agnico-Eagle Limitée, et Louis Gignac, consultant indépendant et directeur, Domtar et Gaz Métro, démarrent le programme technique. Ce duo chevronné et charismatique a aidé à forger l’image actuelle de l’industrie minière.

Ebe Scherkus, president and COO, Agnico-Eagle Mines Limited, and Louis Gignac, independent consultant and director, Domtar and Gaz Métro, kick off the technical program. This experienced and charismatic pair has helped shape the image of the Canadian mining industry today.

Lundi | Monday | AM2 Production | Production

Mines en profondeur • Deep Mining Président/Chair: Michel Leclerc

Les défis d’aujourd’hui sont de plus en plus nombreux avec les opérations qui s’approfondissent. Les mines très profondes ont des défis très particuliers et durant cette session vous entendrez des spécialistes qui vous aideront à affronter ces particularités et conditions exceptionnelles.

As operations go deeper, the number of challenges increases.

Very deep mines have particular challenges and during this session you will hear from specialists who will help you face these exceptional and special conditions.

Elliptical shafts C. Graham, CAMIRO Mining Division, and V. Evans, Mining Technologies International

The development of a seismic risk management plan at Agnico-Eagle’s LaRonde Mine F. Langevin

Possible alternatives for diesel-powered mobile equipment for the conditions of deep mines J. Paraszczak, Université Laval

Mining at depth under weak rockmass B. Foo and I. Iakovlev, Wardrop Engineering Inc.

Maintenance | Maintenance

Environnement • Environment Président/Chair: Léandre Gervais

Cette session portera sur des approches innovatrices permettant de réduire l'impact environnemental relié à l'exploitation minière.

This session covers innovative approaches to reducing mining's environmenal impact.

ACTIFLO® clarification for mining application: efficient and compact technology G. Bourdages, John Meunier Inc./Veolia Water Systems, M. Dupla and C. Boyle, John Meunier Inc.

Metal extraction by Festuca arvernensis and Koleria cristata growing on unpolluted and polluted soils: a pot experiment S. Berrah El Kheir, N. Saidi and A. Bouabdli, Equip Pollution and phytoremediation Ibn Tofail University

Use of GEOTUBES for water treatment P. Martel and M.-C. Dion-St-Pierre, Genivar

Innovation, amélioration et recherche | Innovation, Improvement, and Research

R&D—Exploitation minière I • R&D—Mining 1 Président/Chair: Marcel Laflamme

Maintenance | Maintenance

Meilleures pratiques • Best Practices 1 Président/Chair: Roger Coutu

Cette session comprendra des communications qui cibleront l’innovation, les outils et les réussites correspondant aux meilleures pratiques et stratégies. Elle sera très profitable à tous ceux de notre industrie qui s’efforcent d’améliorer les pratiques et les stratégies de maintenance.

This session will include papers that will focus on innovation, tools, and accomplishments which relate to best maintenance practices and strategies. This will be very informative for people in our industry who strive and look for ways to improve maintenance practices and strategies.

Improving mining and minerals plant performance—operations and maintenance working together G. Johnson and C. Munro, Citect

Lundi | Monday | PM1

Cette session ciblera les nouvelles technologies innovatrices qui ont un impact majeur sur le cycle conventionnel d’exploitation minière (marinage – forage – sautage). La session signalera aussi l’importance des mesures concernant la propriété intellectuelle.

This session will put an emphasis on breakthrough technologies that have a major impact on the conventional mining cycle (muck – drill – blast). It will also illustrate the importance of the actions related to intellectual property.

The basics of intellectual property protection V. Cottrill, Gowling Lafleur Henderson LLP

Innovation—the path to higher productivity M. Denis, R. Siggelkow and W. Siggelkow, HLS HARD-LINE Solutions Inc.

Lundi | Monday | PM2 Production | Production

Contrôle des pressions de terrains II • Ground Control II Présidente/Chair: Chantal Doucet

Production | Production

Contrôle des pressions de terrains I • Ground Control 1 Présidente/Chair: Chantal Doucet

Défis et solutions reliés au design du soutènement dans divers environnements miniers ainsi que présentation de deux méthodes de suivi non destructif de la résistance mécanique des remblais cimentés en pâte.

Challenges and solutions pertaining to ground control design in various mining environments; presentation of two non-destructive monitoring methods for cemented paste backfill.

Evolution of ground support practices at Agnico-Eagle’s LaRonde Division F. Langevin

Mining environments that can contribute to corrosion of mining support J. Hadjigeorgiou and J.-F. Dorion, Université Laval

Maintenance | Maintenance

Efficacité énergétique I • Energy Efficiency 1 Président/Chair: Jean Béliveau

Dans un environnement où les coûts d’énergie sont à la hausse et engendrent une forte pression sur les coûts d’exploitation, chaque méthode et technique de réduction de consommation de l’électricité est utile et même nécessaire. Cette session vous offre ces possibilités à la lumière des technologies disponibles aujourd’hui.

In an environment where energy costs are on the rise and putting pressure on operating costs, each method and technique known to reduce energy consumption is useful and even necessary. This session presents these current available technologies.

Energy-efficient water treatment plant

Cette session est la suite de Contrôle des pressions de terrains I durant PM1.

This session is a continuation of Ground Control I in PM1.

Ground support observations at Xstrata’s Craig and Onaping mines B. Simser and R.W. Deredin, Xstrata Nickel’s Craig Mine

Suivi non-destructif de lévolution de la résistance mécanique des remblais cimentés en pâte : application de la résistivité et de la micro-sismique en laboratoire S. Ouellet, Genivar

Maintenance | Maintenance

Efficacité énergétique II • Energy Efficiency II Président/Chair: Jean Béliveau

Cette session est la suite de Efficacité énergétique I durant PM1.

This session is a continuation of Energy Efficiency I in PM1.

Identification of potential energy savings in Quebec mine ventilation systems R. Lacroix, S. Hardcastle and C. Kocsis, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada

Soft energy efficiency measures and innovations—incremental gains in mines P. Laliberté, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada

Innovation, amélioration et recherche | Innovation, Improvement, and Research

R&D—Exploitation minière II • R&D—Mining II Président/Chair: Marcel Laflamme

P. Martel, Genivar, A. Coggan and D. Berthelot, Rio Algom

Cette session est la suite de R&D—Exploitation minière I durant PM1.

This session is a continuation of R&D Mining I in PM1.

Using the K.I.S.S. principle in ventilation modelling

Ventilation on demand projects—CVRD Inco

T.R. Paquin, Hatch Ltd

C. Allen, CVRD Inco

ITH drilling at 400 psi at the Goldex Mine P. Frenette, Agnico-Eagle, Goldex Division November 2007 | 85

Mardi | Tuesday | AM2

Mardi | Tuesday | PM1

Production | Production

Maintenance | Maintenance

Méthodes d’exploitation • Mining Methods

Meilleures pratiques II (1) • Best Practices II (1)

Président/Chair: Alain Béland

Président/Chair: Brad Kingston

Lors de ces conférences, vous pourrez apprendre et connaître différentes méthodes pratiques tant en améliotation qu'en innovation pour divers types de minage. Les méthodes conventionnelles filonniennes ou méthodes modernes mécanisées seront abordées par nos panélistes.

This session will provide practical ways of improving different types of mining methods, namely conventional narrow-vein and modern mecanized methods.

Improvements to the Zone 1 mining method at the Doyon Mine

Cette session soulignera les meilleures pratiques organisationnelles, techniques, de méthodes et de procédés ainsi que les activités qui se sont avérées efficaces pour améliorer le rendement – les coûts et/ou la fiabilité.

This session will highlight best practices in organization, technique, method, process, and activity that have proven effective at delivering improved performance—cost and/or reliability.

Canada’s MMP (maintenance management professional) certification program

F. Girard and F. Brunet, IAMGOLD—Doyon Mine

N. Clegg, Plant Engineering and Maintenance Association of Canada (PEMAC)

Training operators—a diligent responsibility Production | Production

Exploitation de gisements filoniens • Narrow-Vein Mining Président/Chair: Éric Tremblay

Au cours de cette session, nous discuterons des méthodes innovatrices d’exploiter des gisements filoniens, de l’optimisation des méthodes d’exploitation et du contrôle mécanique des roches dans des environnements de grandes contraintes, sans remblayage en pâte ni cimenté.

In this session, we will talk about mining method innovation in narrow veins, optimisation of mining methods and finally, rock mechanical control in high-stress mines with no paste fill or cemented rock fill.

Hybrid long-hole method and pillar recovery in narrow vein mining P. Chabot, IAMGOLD—Sleeping Giant Mine

Adaptation of the long-wall mining method with a platform R. Royer, IAMGOLD—Mine Géant-Dormant

Challenges associated with narrow-vein mining in a highstress environment: Mouska Mine case study E. Williams, IAMGOLD—Mine Mouska

Innovation, amélioration et recherche | Innovation, Improvement, and Research

Équipement innovateur • Innovative Equipment Président/Chair: Eric Hinton

Cette session touchera à divers sujets – de la conception des équipements et du contrôle des systèmes à l’automatisation des procédés. Les communications porteront, entre autres, sur la vibration des béquilles de foreuses et des mesures de contrôle à la gestion des ventilateurs. Les télécommandes sans fil seront aussi examinées et des discussions suivront chaque communication.

This session will have a variety of subject matter, from equipment design and system control to automation of processes.

The papers vary from jackleg vibration issues and control measures to ventilation fan management. Wireless remote command will also be examined and discussion will follow each paper.

Development of an anti-vibration handle for pneumatic jackleg rock drills P. Marcotte, IRSST, S. Ouellette, LMSM-CANMET, J. Boutin, IRSST, G. LeBlanc, LMSM-CANMET, and P.-É. Boileau, IRSST

Wireless sensor networks: future solution for industrial automation C. Abdellah, LRCS—Université Laval

Real-time ventilation-on-demand A. Cervinka, Newtrax Technologies Inc., and M. Masse, Simsmart Technologies Inc. 86 | CIM Magazine | Vol. 2, No. 7

D. Gravel, Wardrop Engineering

Maintenance | Maintenance

Maintenance préventive et prédictive I • Preventive/Predictive Maintenance I Président/Chair: Chris Dougherty

L’efficacité de la maintenance et la disponibilité des équipements constituent un véritable défi; la maintenance prédictive/préventive est essentielle à l’accroissement global de l’efficacité des actifs. Vous verrez plusieurs aspects de cette approche.

The maintenance effectiveness and equipment availability are a real challenge and predictive/preventive maintenance is essential to increase overall asset efficiency. You will learn many important aspects of this approach.

The protection of electrical motors G. Brunello, GE Multilin

Innovation, amélioration et recherche | Innovation, Improvement, and Research

R&D—Maintenance I • R&D—Maintenance I Président/Chair: Tony George

En tant que partie intégrante d’une production rentable, la maintenance exige de la R&D pour assurer une amélioration continue. Les communications de cette session analyseront les diverses initiatives de R&D qui démontrent l’engagement de l’industrie minière à travailler de manière plus intelligente dans les pratiques de maintenance.

As an integral part of cost-effective production, maintenance requires research and development to ensure continuous improvement. Papers in this session will examine various R&D initiatives that demonstrate the mining industry’s commitment to working smarter in maintenance practices.

Rebuild, repair and protect industrial equipment from wear I. Bouchard, Henkel Loctite

Mardi | Tuesday | PM2 Maintenance | Maintenance

Meilleures pratiques II (2) • Best Practices II (2) Président/Chair: Brad Kingston

Cette session est la suite de Meilleures pratiques II (1) durant PM1.

This session is a continuation of Best Practices II (1) in PM1.

Ingénierie de maintenance L. Soucy, Promaintech Novaxa

Synergie production-maintenance par le soin des équipements L. Soucy, Promaintech Novaxa

Maintenance | Maintenance

Mercredi | Wednesday | AM2

Maintenance préventive et prédictive II • Preventive/Predictive Maintenance II

Production | Production

Président/Chair: Chris Dougherty

Cette session est la suite de Maintenance préventive et prédictive I durant PM1.

This session is a continuation of Preventive/Predictive Maintenance I in PM1.

Innovation, amélioration et recherche | Innovation, Improvement, and Research

R&D—Maintenance II • R&D—Maintenance II Président/Chair: Tony George

Cette session est la suite de R&D—Maintenance I durant PM1.

This session is a continuation of R&D Maintenance I in PM1.

Mercredi | Wednesday | AM1

Meilleures pratiques d’exploitation II • Mining Best Practices II Président/Chair: Guy Belleau

Cette session est la suite de Meilleures pratiques d’exploitation I durant PM1.

This session is a continuation of Mining Best Practices I in PM1.

Application of mass blast for stope blasting in deep mines P. Larouche, Agnico-Eagle Mines, LaRonde Division

Lessons learned on developing rockfill and paste fill tunnels at Brunswick Mine R. Harrisson, Xstrata BMS, and R. White

Centralized electronic blasting system application at Myra Falls operations G. Zhao and L. Dueck

Production | Production Production | Production

Meilleures pratiques d’exploitation I • Mining Best Practices I Président/Chair: Guy Belleau

Cette session sera l’occasion par excellence pour échanger, rencontrer des collègues d’autres exploitations et partager des expériences avec eux. Ce sera aussi une excellente occasion d’améliorer vos opérations en ce qui concerne la sécurité, la qualité et l’efficacité.

This session will be a great opportunity to exchange, connect and share experiences with colleagues of other operations. This will also be an excellent opportunity to improve your operations with respect to safety, quality and efficiency.

The 425 main ore zone project—dealing with SO2 emissions É. Côté, D. Petrie and M. Verreault, Xstrata Zinc, Brunswick Mine

Pastefill operation at Xstrata Copper—Kidd Mine M. McGuinness and C. Bruneau, Xstrata Copper, Kidd Mine

Building Perseverance Mine: construction standards and guiding principles!

L. Joncas, Xstrata Zinc, G. Belleau, Xstrata, and T. Plaisance, Xstrata Zinc

Production | Production

Étude de cas—exploitation minière I • Case Study— Mining I Président/Chair: Martin Drennan

Cette session présente des études de cas sur les défis de la gestion des cheminées à minerai et leur longévité, le besoin de déplacer le matériel en accroissant la capacité des treuils d’extraction et les défis rencontrés lors de la construction d’une nouvelle mine de nickel au Manitoba.

This session outlines case studies on the challenge of ore pass management and longevity, the need to move material through increased hoisting load capacity, and the challenges of constructing a new nickel mine in Manitoba.

Observations on the ore pass systems at Brunswick Mine

Étude de cas—exploitation minière II • Case Study— Mining II Président/Chair: Martin Drennan

Cette session est la suite de Étude de cas—exploitation minière I durant AM1.

This session is a continuation of Case Study—Mining I in AM1.

Mercredi | Wednesday | PM1 Maintenance | Maintenance

Planification et ordonnancement • Planning and Scheduling Président/Chair: Jacek Paraszczak

La session aborde les sujets concernant l'optimisation et la gestion de la maintenance, ainsi que la gestion du parc d'équipements. Les articles couvrent le large spectre d'opérations incluant les mines à ciel ouvert et les concentrateurs, ainsi que des sujets s'étendant du logiciel innovateur jusqu'aux stratégies et pratiques.

This session addresses important issues concerning optimization and management of maintenance as well as equipment fleet management. The papers cover a broad spectre of operations including open-pit mining and concentrators, and subject ranging from the innovative software to strategies and practices.

Lean maintenance et fiabilité L. Soucy, Promaintech Novaxa

PITRAM3 fleet management system J.H. Williams, Micromine Ltd.

Pratique de fiabilité totale d’usine Y. Cabot and J. Cayouette, Agnico-Eagle Mines, LaRonde Division

J. Hadjigeorgiou, Université Laval, K. Esmaieli, R. Harrisson, Brunswick Mine, Xstrata Zinc

Speed up that hoist!

J. Morrow, Xstrata Nickel

Crowflight Minerals Bucko Mine—a new mine in Manitoba M.L. Hoffman, P. Keller and G. Collins, Crowflight Minerals

November 2007 | 87

history California gold (Part 2)

by R.J. “Bob” Cathro Chemainus, British Columbia

The gold-quartz veins of the Pacific Coast attain their greater development along the western margin of the Sierra Nevada batholith and appear again in southeastern Oregon… come to light in spots in British Columbia and are strongly represented on the shores of southeastern Alaska. Free gold, quartz gangue and scant sulphides are typical…

They are common in and about minor intrusions of diorite and quartz-diorite; some are seen at contacts of serpentinite…

Their proved vertical range is over 5,000 ft; their entire range probably over 10,000 ft, without marked change or zoning. Their simplicity is amazing (LINDGREN, 1933)

121

120

o

G

R DP

F

o

SCC - Slate C reek C omplex LCC - Lake C ombieC omplex DGO- D evils G ate O phiolite

M

40

o

BF DGO

BBF

All eghany Dis tr ic t

DF

SCC

Fig 8.7

WC F LCC

GH F

Fig 8.3

GC F

Grass Vall ey Dis tr ic t Fig 8.4

Georgetown

Gr ea

Sierra Nevada Batholith

a t V lle

Fig 8.6

This chapter has relied heavily on Ash (2001), who has prepared a fine summary of a complicated subject, and also kindly suggested improvements to my text. The other main source of information is Knopf (1929).

The Sierra Nevada region was one of the most intensely studied mineral districts in North America during the active mining period, and up until the 1980s.

That was because of its important gold content as well as its complex geological setting. In fact, California gold is an excellent example of the evolution that occurred in economic geology theory over a span of about 150 years. Ash has summarized the three principal phases of understanding, beginning with observations made during the early classical stage, then describing how the origin of the host rocks had to be reconciled with plate tectonic theory, and finally concluding with an interpretation of the role played by the ophiolite model in the genesis of the gold deposits.

Gold-quartz vein deposits throughout the North American Cordillera, from California to Alaska, are often spatially associated with carbonate-sericite-pyritealtered ophiolite rocks, both mafic and ultramafic, known as listwanites.

Listwanite (after the Russian listvenity, from the type locality in the Ural Mountains) is a term that was used almost exclusively by Russian geologists until the 1970s to describe listwanite-altered rocks veined by hydrothermal quartzcarbonate. As used in California, the term describes an alteration suite composed of carbonate, mariposite/sericite, pyrite, and introduced quartz. This alteration assemblage was referred to by early California miners Post Accretionary as ‘blue jay.’ intrusions Ophiolites are obducted, usually dismembered, Accreted Terranes Middle to Late Jurassic remnants of ancient oceanic lithosphere consisting Smartville Complex mainly of crustal igneous and sub-crustal metamorflysch and mafic volcanics Late Triassic - Early Jurassic phic mantle rocks. In orogenic belts like the North Slate Creek & Lake Combie Complex fore-arc igneous complexes American Cordillera, ophiolitic assemblages occur Paleozoic to Early Triassic either as allochthonous, dismembered and imbriCalaveras Complex chaotic chert-argillite complex with cated structural slices that were transported tectonilesser limestone and mafic volcanics Red Ant Schist cally across former continental margins, or as imbripre-Middle Jurassic blueschists facies rocks Paleozoic cated and deformed slices in the central parts of oroFiddle Creek Complex ophiolitic assemblages with gens. The current view, which is well rooted in the Middle Triassic and Early Jurassic volcanics and sediments development of plate tectonic theory, is that ophioFeather River Belt polygenetic ophiolitic assemblages lites are generated at oceanic spreading centres, North America either at mid-ocean ridges or in mantle slabs above Eocambrian to Early Paleozoic Northern Sierra Terrane subduction zones. continental derived clastics

y

with pre and post accretionary overlap volcanics and sediments

MF

Moth er Lode Belt

S

QuartzH ill

FT

Oregon Californ ia

K

38o

Sonora SF

EK

Faults and Fault Zones

NS

Coulterville

M

BM F

BBF- Big Bend BMF - Bear Mountain CSFT- Calaveras-Shoo Fly thrust DF- Downieville DPF- Dogwood Peak GCF- Goodyears Creek GHF- Gillis Hill Fault GM - Grizzley Mountain M F - Melones RBF- Rich Bar 0 SF- Sonora WCF - Wolf Creek

25 km

88 | CIM Magazine | Vol. 2, No. 7

WS

F Mariposa

50 200

0 km

Nevada

C

POSTACCRETION Middle Jurassic - Cretaceous Intrusions SierraNevadaBatholith

Mississippian - Early Jurassic K -KlamathBelt WS-W esternSierra

DisplacedNorth America Eocambrian - Lower Paleozoic

Foothills Suture

EK- E astern K lamathB elt NS- Northern S ierra

Mother Lode system This was the bewildering geological setting for the gold deposits that faced economic geologists in the middle of the 19th century. The classical geological interpretation, as summarized by Knopf (1929), was that the Mother Lode system was a steeply dipping complex of metasediments, metavolcanics, and some serpentinized intrusive bodies. For obvious reasons, Geology and distribution of the major gold camps in California: Mother Lode Belt, Grass Valley District, and Alleghany District (from Ash, 2001, Fig. 8.2).

economic geology

In spite of the obvious limitations, pioneering advances had been made by 1929 in the study of the profound wall rock alteration that accompanied the ore-forming process of the Mother Lode veins the knowledge base available at the time didn’t permit the various accreted and thrusted units to be differentiated.

Now called the Calaveras Complex, it was originally divided into an older Calaveras formation (typically black phyllites with subordinate quartzite, limestone, and green schists) and a younger Mariposa formation of Carboniferous age (derived by metamorphism of augite tuffs and lavas and interbedded, in places, with phyllite).

The complex is one of a number of litho-tectonic elements within the Sierra Nevada Metamorphic belt.

The early underground mapping recognized two principal types of gold deposits, quartz veins and bodies of mineralized country rock, of which the latter shows the most variety and complexity. The quartz veins generally occur as systems of parallel or acutely intersecting veins. As many as four veins were worked in individual mines but few could be traced for more than one kilometre. They usually intersected the cleavage of the enclosing rocks at an acute angle in both strike and dip, filling fissures that were formed by reverse faulting. In some cases, the displacement amounted to as much as 120 metres. The veins tended to pinch and swell abruptly, with quartz becoming more admixed at the edges of the lenses. Banding or ribboning was common in veins that were enclosed by slate or schist and invariably parallel to the walls of the vein.

Where the massive quartz frayed out into a stringer lode, it became poorer in grade. Although oreshoots tended to be wider than adjacent barren sections of the vein, large quartz bodies did not necessarily make ore. The oreshoots were generally short but persisted to depth, with a steep rake.

Most of the known oreshoots cropped out at surface, although some blind ones were discovered whose tops were as deep as one kilometre. The only generalization that could be made about ore controls was that oreshoots could occur in any rock except serpentinite, that slate was a more favourable wallrock than greenstone, and that veins wholly enclosed in greenstone tended to be low grade. In the early years, ores grading as low as 0.1 to 0.15 opt were mined.

The bullion ranged in fineness between 790 and 840, with the balance consisting mainly of silver.

Pyrite was by far the most abundant sulphide mineral in the ores, comprising one to two per cent of the quartz ore and up to two or three times that in the mineralized country rock. It was formed early in the initial quartz phase along with arsenopyrite, which was the second most abundant sulphide. Coarse arsenopyrite coincided with rich ore

Plymouth Plymouth

Post Accretionary Tertiary andesite tuff

Accreted Terranes Mother Lode Terrane Late Jurassic Mariposa Formation

slate and conglomerate Middle to Late Jurassic

Fremont

Logtown Ridge Formation

Treasure

Diabase porphyry

Bunker Hill Amador

Mafic volcanics

Original Amador

Keystone

Late Triassic-Early Jurassic

Penon Blanco Formation Amphibolite Metadiorite Paleozoic to Early Triassic

Sutter Creek Eureka Central Eureka South Eureka

Fiddle Creek Complex chaotic chert-argillite

Calaveras Complex chaotic chert-argillite

- gold quartz mine

Kennedy Argonaut 0.5 0

Jackson

2 kilo m e t res

Geology of the Mother Lode Belt between Jackson and Plymouth (from Ash, 2001, Fig. 8.6).

along the central part of the Mother Lode. Sphalerite and galena were generally contemporaneous with gold.

Although the former was more abundant, galena was considered the best indicator for gold. The telluride mineral petzite, which was restricted to the portion between Jackson and south of Sonora, was also a good indicator of rich ore. Minor amounts of chalcopyrite and tetrahedrite were also present but were indifferent indicators. Stibnite was noted in one of the mines at the south end.

Two types of mineralized country rock were present, a so-called ‘grey ore’ (also referred to as replacement ore) and mineralized schist, occurring either adjacent to quartz veins or in broad zones of fissuring (stockworks).

According to the classical interpretation, the grey ore, which is a mixture of ankerite, sericite, albite, quartz, pyrite, and generally some arsenopyrite, resulted from the hydrothermal alteration of mafic igneous rocks into listwanites. Many of the grey oreshoots were large, with an average grade of up to 0.4 opt and a sulphide content of November 2007 | 89

A’

economic geology

Maryland Mine Brunswick Vein

Grass Valley

Post Accretionary Tertiary and Younger

Volcanics and alluvium

Empire Mine

Late Jurassic - Early Cretaceous

Granodiorite Quartz porphyry

Accreted Terranes Late Triassic -Early Jurassic Lake Combie Complex

Quartz porphyrite

North Star Mine

Diabase and dikes Diorite Gabbro

A

Serpentinized peridotite Paleozoic to Early Jurassic Fiddle Creek Complex: oceanic melange Gold-quartz veins Known course of auriferous channels under volcanic capping

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A’ No r th

-M ar y lan d

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600m

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SeaLevel

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600m

-150

Geology of the Grass Valley District (from Ash, 2001, Fig. 8.5)

three to six per cent. They generally adjoined thin quartz veins or occurred in the wedge between two intersecting veins. The grade of the fine-grained ore could only be determined with assays.

The mineralized schist oreshoots consisted of pyritic sericite-ankerite schist, generally ramified with quartzankerite veinlets, and were interpreted to be the result of alteration of amphibolite and chlorite schist. They were generally lower in grade, from 0.1 to 0.15 opt, although one of the richest ore bodies ever mined along the Mother Lode system, on Carson Hill, was of this variety. Many oreshoots of this type formed either the footwall or the hanging wall of large, thick, barren quartz veins.

In spite of the obvious limitations, pioneering advances had been made by 1929 in the study of the profound wall rock alteration that accompanied the ore-forming process of the Mother Lode veins. Ankerite formed as a replacement of fine-grained mafic igneous rocks, whereas magnesite formed from ultramafic rocks, usually serpentinite.

Serpentinite and the augitic greenstones were the most susceptible to ankerite and magnesite replacement, forming belts many metres thick that are generally tinted a delicate green by the presence of the chrome-rich mica mariposite.

Sericite, albite, pyrite, and arsenopyrite were also commonly introduced through chemical attack, while gold migrated into the wall rocks, where it is associated with sulphides. The alteration process was believed to involve the 90 | CIM Magazine | Vol. 2, No. 7

addition of great quantities of carbon dioxide and potassium-rich fluids to the wall rocks. At the same time, the removal of comparable amounts of silica from the wall rocks was thought to provide more than enough to supply the quartz in the Mother Lode veins.

Modern studies have shown that the gold-quartz vein deposits are preferentially associated with ophiolitic members of the complex. The late Paleozoic ophiolitic and chert-argilite members are interpreted to have formed as an oceanic basement along the continental margin that was disrupted by periods of basinal magmatism during the Late Triassic–Early Jurassic, and again in the latest Middle Jurassic to early Late Jurassic. Both events were followed by intervals of tectonism and deformation during the Middle Jurassic Siskiyou orogeny and the Latest Jurassic Nevadian orogeny. The post-Nevadian Sierra Nevada batholith intrudes the Sierra Nevada metamorphic belt along its eastern margin. Earlier 150 to 140 Ma magmatism resulted in small intrusive bodies, dykes and sills, whereas the bulk of the batholith was intruded between 120 and 80 Ma. Clark (1970) calculated the total gold production from California up to 1969 as more than 106 million ounces (about 3,300 tonnes). The lode portion came from countless small mines plus a few large ones. Although detailed production records do not exist, he was able to document 40 that produced between about one and five million ounces, seven that produced between five and ten million, and two in the Grass Valley camp, Empire-Star and IdahoMaryland, that were much larger.

Within the Mother Lode, about half the gold came from a 16 kilometre long section between Plymouth and Jackson, in Amador County. This portion also hosted most of the largest producers, including the Central Eureka and Kennedy mines, both of which yielded more than 46.5 kilograms (1.5 million ounces) and the Argonaut and Keystone mines (over 1.0 million ounces each). Grey ore was the mainstay of the Keystone Mine, which operated from 1852 until 1920. The only mine to produce more than 1.0 million ounces that was not situated in that part of the belt was Carson Hill. It was also the source of the largest piece of gold recovered from the Mother Lode, in 1854. It weighed 72.8 kilograms (2340 ounces). CIM

References Ash, C.H. (2001). Relationship Between Ophiolites and Gold-Quartz Veins in the North American Cordillera. Geological Survey Branch Bulletin 108. Victoria: British Columbia Geological Survey (available at http://www.em.gov.bc.ca/Mining/Geolsurv/Publications/ Bulletins/Bull108/toc.htm) Clark, W.B. (1970). Gold Districts of California. California Division of Mines and Geology Bulletin 193. Sacramento: California Division of Mines and Geology.

Knopf, A. (1929). The Mother Lode System of California. U. S. Geological Survey Professional Paper 157. Washington: Government Printing Office.

Lindgren, W. (1933). Differentiation and Ore Deposition, Cordilleran Region of the United States. In J.W. Finch (Ed.), Ore Deposits of the United States, Lindgren Volume, (p. 170). New York: The American Institute of Mining and Metallurgical Engineers.

mining The evolution of shaft sinking systems in the western world and the improvement in sinking rates Part 3—Shaft sinking from 1800 to 1900: Cousin Jacks

by Charles Graham, managing director, CAMIRO Mining Division, and Vern Evans, general manager, Mining Technologies International

Shaft Sinking from 1800 to 1900— Cousin Jacks

as w

T

During the latter part of the reign of the Tudors in England (1485–1603), Saxon technicians were brought to England to teach Cornishmen to sink shafts and mine Cornwall’s extensive tin and copper deposits. This worked so effectively that run the f c “diggi ”. Som C by the early 19th century Cornwall possessed some of the best contemporary European mining technology. k BeginningBabout 1840 M and repeating in 1865, O Cornish o, mining prosperity slumped disastrously for a number of technical and economic reasons. The discovery of rich overseas copper l deposits coupledpawith a degree of mismanagement in the Cornish mines worsened the situation, throwing Cornish shaft sinkers and miners out of work. At the same time, the 1800s saw a great deal of British capital investment in overseas mining ventures. These Britishowned mining operations recruited their skilled labour from Cornwall and by the mid1820s, Cornish miners, or “Cousin Cornish shaft sinker Jacks” as they were called, were to be found all across Latin America sinking shafts and developing mines. Cornish miners were also brought in to develop and mine lead deposits in the United States, as well as in Norway and Spain.

Copper was discovered in Australia in 1848 and more Cornish miners emigrated to that area to develop the mines there. Additional mineral strikes across the Americas and Australia followed, which attracted Cornish miners. By 1850, there were an estimated 7,000 Cornish miners and dependents in the upper Mississippi region. Their skills enabled them to construct the deep shafts necessary in that region as well as run the surface “diggings.” Some of the Cornish miners crossed into Canada to work at the Bruce Mine in northern Ontario, which was acquired in 1847 by the Montreal Mining Company and

became the first successful copper mine in Canada. The shaft was sunk and the mine operated until the 1860s, with every shaft sinker and miner being Cornish.

The discovery of gold in South Africa in 1880 provided another area where Cornish expertise in shaft sinking and mine operation was required. In the Transvaal, prior to the Boer War, an estimated cent ofby the white workforce qui 25 per1847 was Cornish. It can therefore be seen that most of the shafts excavated during this period were sunk using very similar equipment and probably with similar advance rates.

The underground miners of Cornwall were divided into two classes—tutmen and tributers. The tutmen did “tut” work,1860s which consisted ofve specific excavation projects, let out by contract to a party offering the lowest bid. A tut party consisted of a number of men, normally divided into three gangs, each of which would work an eight hour shift, so that work proceeded around the clock. When a new mine was being opened up, tutmen were employed to sink the shaft and run the levels in preparation for working the ore body. Once the ore body was reached, it was common to shift to tribute work. The work of tribute miners was organized by the regular mine supervisors. The tutmen were, in effect, shaft sinking contractors being paid according to their contract.

The invention of the steam engine was the most important innovation of the Industrial Revolution.

This invention spawned two very important inventions that much improved the efficiency of shaft sinking in the early 19th century—steam-powered hoists and steam-powered pumps— both of which were pioneered in Cornwall. The Cornish steam-powered pumps were exported all over the world.

November 2007 | 91

nki

mining The development of steam-powered mine hoists in the early 19th century brought about a new problem. Prior to the use of a mechanically powered hoist, hoisting speeds had been rather slow. Now, with higher speeds, it was necessary to have a device that prevented the buckets from swinging in the shaft and crashing into each other when they passed in the shaft.

This problem was solved through the introduction of either rope or fixed guides, which restricted the oscillations of the moving conveyances in the shaft. The lateral movement of the hoist rope was controlled through the use of a cross-head or rider which travelled on the guides and held the hoisting rope securely in place as the bucket travelled in the shaft.

Also, with the introduction of deeper shafts, improved hoist ropes were necessary. This problem was solved when, between 1831 and 1834, Wilhelm Albert, a German mining engineer, developed the first wire rope for mine hoisting.

Wilhelm Albert’s first ropes consisted of wires twisted around a hemp rope core. These ropes did not function particularly well but were followed by developments over a 40-year period (1849–1889), when the majority of the basic forms of wire rope in use today were devised.

With the utilization of steam-powered hoisting equipment came the utilization of headframes. Structures over the top of shafts had been very rudimentary when horse whims were being utilized.

Until 1840, there were very few mechanical ventilating devices used for shaft sinking. The subject of mechanical ventilation received a considerable stimulus in 1840 when the Belgium Academy of Science offered prizes for machines that could be successfully used to ventilate mine shafts.

Engineers were so successful that by 1850, mechanical ventilation was the most popular ventilation system.

Much of Central Europe is underlain by a series of strata which are heavily water-bearing and very difficult to sink shafts through. In 1883, in Germany, F.H. Poetsch developed the freezing method for shaft sinking through heavily waterbearing ground. This system was extremely popular in Germany, France, Poland, the Netherlands, and Belgiam where over 100 shafts were sunk using this method.

Although it was not necessary in Canada to utilize the freezing system for shaft sinking during this time period, there have been some shafts sunk in Canada using this method, including 15 potash shafts sunk in the late 1950s and 1960s in Saskatchewan.

In addition to the freezing method, another method was discovered for assisting the process of shaft sinking through water-bearing ground—the cementation process. The first application of the cementation process took place in 1864 when a break in the brick shaft lining, at a depth of 270 feet, occurred in one of the Rhine Preussen mine shafts. The inflow was stopped by pumping in a thin water cement mix into the area of the leak using a hand pump. Over the next 30 years, a number of attempts were made to improve this 92 | CIM Magazine | Vol. 2, No. 7

A typical sinking headframe in Germany around 1849-1889

process. In 1896, Monsieur A. Françoise developed his method of drilling and injecting a water cement mixture from within the shaft perimeter. Many shafts in France, Germany, and Belgium were sunk using the cementation U method.

In addition to the above innovations, the 19th century saw a number of inventions that speeded the task of drilling and blasting, and thus improved shaft sinking advance rates and the safety of both shaft sinkers and miners.

• Hazardous ignition B was overcome in 1831 with the invention of the “Miners Safety Fuse” by William Bickford.

• Nitroglycerine was discovered by Ascanio Sobrero of Italy in 1846.

• Alfred Nobel developed a mercury fulminate blasting cap in 1865, which led to the development of the electrical detonator in the 1880s.

• Alfred Nobel discovered dynamite for blasting in 1866.

• Compressed air was introduced for mining power in the 1860s displacing steam. The first compressed air plants were steam-powered, however.

• The piston-type rock drill was developed by Charles Burleigh, an American, in 1865. These were subsequently replaced by drills developed by Rand and Ingersoll in the 1870s and 1880s.

• In the 1890s, George Leyner of Colorado introduced hollow drill steel that permitted the flushing of cuttings with a jet of air. Unfortunately, this compounded the dust problem. Leyner modified his drills to allow the injection of water as well, wetting down the dust.

All of these inventions increased shaft sinking advance rates. Drills, however, still had to be firmly mounted on columns to support their weight and resist the recoil forces.

Although the drills were large and unwieldy, they were still an improvement over hand drilling.

In his booklet entitled Metal Mining Performance in Days of Hand Boring and Gunpowder, John Higgins provides information on shaft sinking advance rates for three shafts that

mining Improvements in shaft sinking techniques Drilling Blasting Mucking Permanent lining Protection from ground falls Hoisting Hoist rope Ventilation Water handling Water control Average advance rate

Prior to 1600 No Fire quenching Hand Wood Platforms in shaft Man-powered windlass Hemp Bellows Buckets None 3 to 4 feet per month

1600–1800 Double jacking Black powder Hand Wood Platforms in shaft Horse-powered windlass Hemp Bellows Buckets None 3 to 4 metres per month

were sunk at the Wheal Agar Mine in Cornwall between 1856 and 1860. The size of the shafts are unknown.

• New engine shaft: depth, 105 metres; average sinking rate, 3.18 metres per month.

• Windstraw shaft: depth, 71.7 metres; average sinking rate, 3.77 metres per month.

• Boundary shaft: depth, 24.5 metres; average sinking rate, 4.9 metres per month.

It was not until the early 1880s that mechanized drilling was introduced to the Nova Scotia coal mines; however, their introduction did have implications for mine operators, particularly in the area of shaft sinking. A description is given as to how two Rand No. 2 rock drills were used to sink a shaft through hard rock. The shaft was divided into two compartments, each measuring 4 feet by 4 feet. Shaft excavation was 51⁄2 by 12 feet.

The day shift was the drilling shift and consisted of a foreman, two drillers, and two helpers. The men on this shift were expected to drill all the holes, as well as hoist all the drilling equipment to surface.

The second shift was composed of two muckers and a firing boss. This shift was expected to blast the four sump holes and clean up the muck generated.

The third shift was also composed of two muckers plus the firing boss. They were expected to fire the remaining holes, clean up the rock, and leave the shaft ready for the drilling shift. Using this system, it was possible to excavate at a rate of 3 feet per day. Overall advance, including lining installation, was approximately 40 feet (12 metres) per month.

During this period of time in North America, nearly all the shafts were rectangular and timber-lined. In comparison, nearly all the shafts in Europe were circular and lined with brickwork. The brickwork was generally installed from “walling stages” or “walling cradles” as they were sometimes called. In that manner, the stage could be raised as the brickwork advanced. It is said that late in this period, a Professor Galloway adopted an improved walling cradle, which consisted of two floors 10 feet 6 inches apart, that allowed the sinkers on shaft bottom to continue operations while the wallers were working above them off the walling cradle or stage. It is probably from this invention that the term

Galloway stage, a modern multi-deck suspended work platform, is named.

1800–1900 In most of Europe at this time, Large pneumatic drills shaft advances were very little faster Dynamite and safety fuse than those being obtained in North Hand Brick America. Satisfactory advance rates Permanent brick lining were considered to be 15 to 20 metres Steam-powered hoists per month. In South Africa, advance Wire rope Centrifugal fans rates were somewhat faster, due to Steam-powered pumps the use of massive amounts of labour.

Freezing method Probably the first successful 12 to 15 metres per month mechanical shaft excavating system was introduced in 1852. The Kind–Chaudron system of shaft sinking is basically boring on a huge scale. The system was developed in Germany to enable shaft sinking through heavily water-bearing ground. Between 1852 and 1904, there were 79 shafts sunk using this method, all successfully.

The Kind–Chaudron system resembles a large rod and drop drill. Instead of ordinary drill bits, massive tools called “trepans” are employed, consisting of a heavy iron frame on the lower edge on which a number of individual cutters are set. A 15 foot trepan would weigh 25 to 30 tons. The trepan is attached to a heavy rod suspended from a walking beam operated by an engine on the surface, as in ordinary boring.

The advance bore is cleared of cuttings with a bailer, similar to that used in boreholes.

The entire excavation is carried out under water, then a lining of special design is lowered into place and the shaft dewatered. The lining is composed of cast iron rings bolted together at the shaft collar and gradually lowered to the shaft bottom. The space between the lining and the shaft wall is generally filled with concrete.

The Kind–Chaudron sinking system became obsolete in the early 1900s with the development of grouting and freezing systems, which were considered to be better ways of sinking through heavily water-bearing ground.

As can be seen from the table, the period from 1800 to 1900 was a period of huge improvements in shaft sinking techniques. Sinking rates increased fourfold over the previous period. CIM

References Brown, E.O.F. (1927). Vertical Shaft Sinking. London: Ernest Benn Ltd. Davies, H. (1904). Coal mining. A Reader for Primary Schools and Evening Continuation Classes.

Welsh Educational Publishing Co. Retrieved April 2007 from www.genuki.org.

Donaldson, F. (1912). Practical Shaft Sinking. New York: McGraw–Hill Book Company.

Hanke, N. (2001). 130 Years of Shaft Construction—with more than 180,000 Meters of Shaft Sunk. Mulheim: ThyssenKrupp.

Higgins, J. (2004). Metal mining performance in days of hand boring and gunpowder. Retrieved April 2007 from http://higgsoldminestats.com/.

Poss, J.R. (1979). The legacies of Cornwall: mining systems and miners. World Mining, September, 111–113.

Young O.E. Jr. (1976). Black Powder and Hand Steel. Norman: University of Oklahoma Press.

Young, O.E. Jr. (1970). Western Mining. Norman: University of Oklahoma Press.

November 2007 | 93

metallurgy

History of metal casting–Part 3

by Fathi Habashi, Department of Mining, Metallurgical, and Materials Engineering, Laval University

Above A gigantic cannon cast by Krupp in Germany, on display at the Paris exhibition of 1867.

Right, clockwise from top left Casting of early cannons.

Wrapping the arbor with rope.

After applying loam to the pattern, the mould is reinforced with iron bands.

Baking the cannon mould over an open fire.

Stages in the process: 1) arbor, 2) winch, 3) arbor and winch mounted on trestles, 4) partially wrapped arbor, 5) completely wrapped arbor.

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Casting of Cannons With the discovery of gun powder around 1250 AD, European bell founders turned to guns. During the sixteenth century, the production of cannons increased as armies came to appreciate their destructive power. As a result, monarchs became interested in casting cannons.

For example, Maximilian I, the Holy Roman Emperor, established an arsenal in Innsbruck in 1505, now a museum, while Henry VIII (1491-1547) established an Ordinance Depot (later Royal Arsenal) at Woolwich in 1518. The inadequacies of early iron resulted in the use of bronze as a material for cannons. Early cannons were cast hollow, using cores to create a rough but serviceable barrel that could be finished and smoothed by hand. However, the bores were often not round, which caused wide variations in range and accuracy because of the difficulty in aligning the core to the barrel during casting.

It was Johan Maritz, Master Founder at Burgdorf, Switzerland, who, in 1713, designed a machine tool that was capable of boring cannon barrels from a solid casting. The method was time-consuming; however, it produced cannons with round, smooth, and parallel bores. When the Dutch Ordinance decided to adopt his technique in 1747, Maritz moved to the Netherlands State Gun Foundry in The Hague, Europe’s leading gun producing facility at the time.

Maritz’s sons later introduced the technique to France and Spain.

Monge and casting of cannons In the early days of the French Revolution, the serviceable artillery pieces were very small. In 1793, Napoleon appointed his friend, the mathematician Gaspard Monge (1746-1818), to lead a special commission to oversee the production of artillery. Monge abandoned the use of clay in favour of sand to decrease cost and improve the quality of the casting. He established gun foundries in churches and on farms throughout the French countryside, and instituted training programs intended to familiarize workers with the techniques and skills needed to implement the new methods to be

metallurgy

From left to right Iron from the blast furnace flowing in sand moulds prepared on the ground and left to cool; Continuously moving casting machines

used in making cannons. France produced 7,000 pieces for the army and navy in 1793-1794. Monge’s contribution to the advancement of cannon production was recognized on a French stamp issued in 1990.

Iron cannons Bronze possessed greater tensile strength than iron and could withstand bore pressures more readily when the weapon was fired. On the other hand, it was much more expensive than iron. This drove the research into improving the production of iron. In 1795, John Wilkinson (17281808), the iron master of Soho Works in Stoke-on-Trent in England, designed a small shaft furnace that became known as a cupola in which he melted pig iron and other material to produce cast iron of better quality. With these improvements in the quality of iron, bronze was gradually replaced by iron. His high-quality cannons were the reason for the British Navy’s superiority in battles.

The first cannons were the bombard type but these were later replaced by barrel-type cannons that were bigger in size. The early projectiles used were stone balls. Then, in 1373, iron shot came into use, but only to a small extent due to the high cost; they became widely used around 1600.

Explosive projectiles were later used.

Casting of hollow cannons In casting the early cannons, an octagonal piece of timber known as arbor was used, around which straw rope was wound. Loam was pressed into the straw and smoothed by a strickle board, forming the outside of the cannon.

Trunnios were then applied and more loam added. The

entire mould was then bound with iron bands and baked over a fire; the whole assembly turned on its arbor until completely dry. After cooling for a few days, the arbor was removed. A chaplet was used to hold the core in place. The breech was usually moulded separately and the whole job was assembled, breech down, in a pit before the furnace.

Boring of solid cast cannons A solid cannon was firmly secured horizontaly in a water-powered machine designed specifically for boring. An iron boring bar with a steel cutting tool was advanced into the bore of the piece as the gun blank was turned by the machinery. A series of cutting heads were used; the first was small and subsequent heads increased incrementally in size until the desired bore diameter was achieved. Boring typically lasted for a period of days.

Boring cannons and the theory of heat In 1798, while manufacturing cannons for the Bavarian military, Count Rumford (1753-1814) observed that grinding used to hollow out the barrel produced huge amounts of heat, which continued to flow with the borings as long as the grinding was maintained. According to the theory at that time, the stress of rubbing surfaces together forced some caloric fluid to be pushed out from between the atoms, and it appeared as heat. Rumford, however, noted that the piece of metal must have contained an apparently infinite amount of caloric fluid. He therefore came to the conclusion that the friction of grinding set the internal invisible microscopic particles in the metal in motion, resulting in heat emitted as atoms came into contact.

November 2007 | 95

metallurgy Beneath the pinch rolls is an oxyacetylene flame, which cuts the emerging ingot into convenient lengths. A few years later, the same technique was introduced in the copper and aluminum industries.

Epilogue

Casting pig iron in ingots

Rumford’s work did not however kill the caloric theory. It was the physicist James Prescott Joule (1818-1889) who in 1847 conclusively supported Rumford’s views—a turning point in the history of science.

Continuous Casting Iron from the blast furnace was allowed to flow in sand moulds prepared on the ground and left to cool. When solidified, the pigs were then removed and the moulds reused. This process is no longer used because it involves extensive manpower. Continuously moving casting machines were then introduced; by the time the molten pigs were moved from one end to the other, they were solidified and dropped away from the moulds in the form of pigs, which were then used to make cast iron in the cupola.

The bulk of the pig iron is transferred in the molten state to the steelmaking plant. Steel was usually cast in ingots and when solidified, it was removed and put in a furnace to be heated to a determined temperature before transporting it to the fabricating mills. This meant handling a batch often during the cooling step. Introducing continuous casting solved this problem in 1960s. In this process, the molten metal is continuously fed from a reservoir and is allowed to solidify rapidly in a mould so that at any given time, there is only a small pool of molten metal present at the top of the ingot. As the solidified ingot emerges, it is grasped by a set of rolls which regulate its downward progress. The contraction of the freezing metal causes it to pull away from the mould walls.

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Metals were cast by ancient people to produce ornaments, primitive agricultural tools, or arrow heads for hunting. The introduction of copper, bronze, and later iron was so important in the history of man that epochs are named Bronze Age and Iron Age to emphasize the shift from the Stone Age. The close ties between casting metals and pottery indicate that the two arts must have developed simultaneously. It was the potter’s art of handling suitable clays and their proper firing that gave the foundry man the crucible for holding molten metal.

Centuries later, when gun powder was discovered, casting changed hands from monks and church officials, who were casting bells, to monarchs, who became interested in casting cannons. In times of war, bells were usually confiscated and cast into cannons. The artistic ornaments and statues conserved in to museums, the gigantic bells, and the monstrous cannons that have been cast throughout history are a testament to the skill of the metal founder. The new technology of continuous casting reflects the response of industry to the need for a fast and reliable method to satisfy the requirements of a developing society. CIM

Suggested Readings Aitchison, L. (1960). A History of Metals. New York: Interscience.

Berenguer Rodriguez, J., & González, L.A. (2004). Copper Art in the Andean World. Santiago: Museo Chileno de Arte Precolombino.

Biringuccio, V. (1943). De La Pirotechnia (published in 1540; English translation by C.S. Smith and M.T. Gnudi). New York: American Institute of Mining and Metallurgy.

Derry, T.K., & Williams, T.I. (1960). A Short History of Technology from the Earliest Times to AD 1900. New York: Dover Publications.

Johnson, R.E. (1993). The changing technology of artillery manufacture. CIM Bulletin 86, 156-161.

Habashi, F., editor (1994). A History of Metallurgy. Québec City: Métallurgie Extractive Québec/Laval University Bookstore.

Knauth, P. (1974). The Metalsmiths. New York: Time-Life Books.

Leibbrandt, A. (2001). Civilization and Copper—The Codelco Collection. Santiago: Corporación Nacional del Cobre.

Simpson, B.L. (1948). History of the Metal-Casting Industry. Des Plains: American Foundrymen’s Society.

Tylecote, R.F. (1976). A History of Metallurgy. London: Metals Society.

AN ONLINE MEMOIRE

MINING

IN

CANADA

a personal history c

Excerpt

c

ne day we had a visitor, well, not exactly a visitor, but rather someone who was doing a time study on us. We noticed that he was taking notes but as he was a little ways behind us, we just assumed that he was doing something that did not concern us.

This went on for a few days. At one point I went to get powder from the powder box that was located about 300 feet from where we were working. The box was red, constructed from wood, with a hinged top on it and a latch that was never locked.

This was the case in the 1950s and 1960s but later, dynamite was packed in paper cartons. The box was able to hold about six to eight cases of dynamite, or by law no more than 250 to 300 pounds at one time. Inside the box was a wooden mallet and a wedge of fiber material. I picked up two cases of dynamite, brought them to the rock face, dumped them on the floor, and as usual split them open with the shovel, all the while ignoring our visitor who was still writing. While Ray Sam was cleaning out the holes by blowing them out with air, I went to talk to our visitor who was around the corner. When I asked him what he was doing, he seemed somewhat puzzled at the question.

He asked whether the shift boss had told us that he was doing a time study on us. He had not.

I told Ray about my discovery and he was as surprised as I was about this man studying us. We were later given a lecture by the shift boss about having opened the dynamite with a shovel. We were not surprised and knew where it had come from.

O

YOUR

GUIDE

TO INDUSTRY KNOWLEDGE Peer reviewed by leaders in their fields CIM Bulletin Abstracts 99

1st International Symposium on Fuel Cell Applications to Mining M.C. Bétournay

100

Selecting effective hydrogen production and delivery options for mining applications K.M. Curran

101

Industry requirements for introduction of alternate energies with emphasis on hydrogen fuel cells F. Delabbio, D. Starbuck, A. Akerman, and M.C. Bétournay

102

Mine site hydrogen storage and delivery models M.C. Bétournay, G. Desrivières, D. Eastick, F. Delabbio, and K. Curran

103

Fuel cell aspects and future developments needed for mining A.R. Miller, D.L. Barnes, M.C. Bétournay, M. Laflamme, G. Desrivières, and F. Delabbio

104

Underground fuel cell loader design and performance D.L. Barnes, O. Velev, B. Brown, P.M. Golben, G. Desrivières, and M.C. Bétournay

105

Environmental and ventilation benefits for underground mining operations using fuel cell-powered production equipment C. Kocsis, S. Hardcastle, and D. Eastick

106

Economic aspects to fuel cell mine applications R. Lacroix, M.C. Bétournay, M. Laflamme, A.R. Miller, and D.L. Barnes

107

Storage and safety issues of hydrogen as an energy vector P. Bénard

108

Ensuring adequate safety when using hydrogen as a fuel D.A. Coutts

109

Exploration and Mining Geology Journal Volume 16, Numbers 1 and 2

110

Canadian Metallurgical Quarterly Volume 46, Number 3

Complete CIM Bulletin papers are posted in the online Technical Paper Library

www.cim.org 98 | CIM Magazine | Vol. 2, No. 7

1st International Symposium on Fuel Cell Applications to Mining I N T R O D U C T I O N The underground mining industry is motivated to consider alternative power systems for mobile equipment to that of the conventional diesel internal combustion engine, based on the need to improve air quality, reduce cooling requirements, reduce ventilation requirements, and reduce greenhouse gas output. Based on the relatively small engine market that underground mining represents, there is very little motivation for the major engine suppliers to dramatically improve engine technology. Current alternative options, including use of exhaust filters, electrical systems that require a trailing cable, etc., are all options but in no way do any meet all the existing and future needs of vehicle mobility, diesel emissions, waste heat, and greenhouse gas emissions.

Several mining projects have been successfully undertaken to date to demonstrate the viability of hydrogen in underground vehicles and mining conditions. There now exists a broad range of expertise and experience in regards to this technology application and direction for its introduction in the mining industry.

The papers presented, plenary session, and round-table discussions covered a number of strategic themes: • Effective hydrogen production and delivery for mining operations • Safety and risk aspects for underground hydrogen power application • Mine standards and regulatory development • Operational requirements for hydrogen power • Mine site hydrogen infrastructure and distribution • Fuel cell power plant design • Fuel cell mine vehicle; fuel cell mine equipment testing in situ • Fuel cell versus conventional power cost benefit • Impact of fuel cell technology on mining extraction strategies • Introduction of fuel cell technology to the mining industry This symposium met its program objectives and established content and process for the industry’s drive to address the many hurdles to be overcome prior to introduction of new technologies, such as hydrogen for full underground operation utilization.

Considered were: • Operational drivers that would motivate a change • Commercial supply of technology (what is available now versus that requiring further R&D) • System requirements to support the technology • Health and safety overall • Capital and operating (based on system and health and safety requirements) • Mine production • Corporate philosophy to technology • Role of governments

The following papers were presented at the 1st International Symposium on Fuel Cell Applications to the Mining Industry that was held at the CIM Conference and Exhibition in 2007 in Montreal. It was sponsored by the CANMET Mining and MinThe mining industry has previously and is presently supporteral Sciences Laboratories, the Fuelcell Propulsion Institute, and ing the development of new technologies but further work is the Canadian Institute of Mining, Metallurgy and Petroleum. required prior to implementation. The introduction of alternate energy technology requires a step-wise progression from applicaThe symposium program objective was to provide a clear bility to the mining industry, to proof of concept testing in mines, status of technology application, scientific findings of projects, to development of generic infrastructure, power systems, and and promote discussion and input from, and exchanges regulations, to whole operating system studies (including producbetween, all participants—national and international mining tion operation of fleets), to detailed studies of cost and risk verstakeholders, technology developers, research organizations, and sus benefits. power industries.

The organizers hope that the next International Symposium on Fuel Cells Applied to Mining will be able to provide all interested parties with continued confirmation of hydrogen technology viability for underground mining and industry advancement towards implementation.

Marc C. Bétournay, Chairman, 1st International Symposium on Fuel Cell Applications to Mining November 2007 | 99

executive summaries

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Selecting effective hydrogen production and delivery options for mining applications Like many sectors, the mining industry may find benefit in revisiting all formats of energy supply to its operations, the efficiency of that energy in generating dedicated power, and considering alternate methods of energy delivery and use.

This is especially viable in the context of trends to hydrogen and hybrid power that are taking shape within other vehicle sectors such as private vehicles and transit vehicles. Underground mining operations, in particular, have challenges associated with diesel-powered vehicles that result in increased ventilation volumes and fan power requirements in areas where these vehicles operate. These needs of increased ventilation affect the energy requirements in a mine and so, if ventilation can be reduced, some energy savings may be possible.

Avoidance of any undesirable emissions from underground vehicles, especially because of their suspected harmful nature, offers advantages that can be leveraged against a simple economic comparison of the fuel value and related energy costs and required infrastructure for the end user.

Hydrogen, used as a fuel, offers benefits in the area of reduced particulate and toxic emissions when it is used both in an internal combustion engine and especially when the energy of hydrogen is converted to electricity via a fuel cell.

Both modes of energy conversion produce little else but water, which is more easily managed than the NOx, SOx, CO2, and particulate emissions from other gaseous or liquid fuels.

The path by which hydrogen supply is provided to any end use application will have a strong effect on the specific economics and price stability for that product supply and the flexibility with which it can be used. The objective of this paper is to present those variables that play a significant role in the selection of the hydrogen production technology, with a particular focus on several typical mining applications.

Since hydrogen is an energy carrier and not a source, the supply chain chosen for hydrogen transmission plays a significant role in the economic balance between hydrogen and other

K.M. Curran, Air Liquide Canada Inc., Ottawa, Ontario

100 | CIM Magazine | Vol. 2, No. 7

fuels of choice for use in a mine. This paper examines the economics associated with four portions of the hydrogen supply chain for three commercially available methods for hydrogen supply. The four elements of each supply chain are: production, distribution, storage, and dispensing. The three methods for supply discussed include gaseous tube trailers delivered product, gaseous hydrogen onsite production through electrolysis, and liquid hydrogen delivery.

The variables examined include gas requirements in terms of flow-rate and demand profile, overall volumetric consumption, level of interruption tolerable, gas pressure, and quality needs. Also examined are the effects of geography in terms of primary energy supply available as well as existing hydrogen sources, developed or not. The role of these factors in the selection of an appropriate supply chain capable of supporting mining applications that use hydrogen as an energy carrier is illustrated with a typical mining application scenario drawn upon in the form of a case study.

The paper concludes that the selection of a hydrogen supply mode is a complex process that must consider all elements of the supply chain in terms of needs of the end user, defined by flow rate, pressure, and purity. Other parameters that must be considered include the cost of energy both for onsite production and the cost transport of any product delivered, related to proximity to existing sources of hydrogen.

Consumption patterns on a daily and hourly rate basis, delivery pressure, and duration of demand will affect capital expenditures, while energy costs and durability of equipment will affect operating costs. Electrolytic hydrogen production gains advantages most when consumption is consistent and system sizing is matched to flow rate demand. Gaseous hydrogen offers flexibility in lower flow situations or sporadic requirements, while liquid hydrogen offers the most economic supply method when distance from the liquid source is manageable with transport by bulk tanker and especially when product demand exceeds 40 kg/day.

executive summaries Industry requirements for introduction of alternate energies with emphasis on hydrogen fuel cells

The underground mining industry is motivated to consider alternative power systems for mobile equipment to that of the conventional diesel internal combustion engine, based on the need to improve air quality, reduce cooling requirements, reduce ventilation requirements, and reduce greenhouse gas output. Based on the relatively small engine market that underground mining represents, there is very little motivation for the major engine suppliers to dramatically improve engine technology. Currently, the use of exhaust filters, electrical systems that require a trailing cable, etc., are all alternative options but in no way do any meet all the existing and future needs of vehicle mobility, diesel emissions, waste heat, and greenhouse gas emissions.

Mining companies are focused on the extraction of ore, safely, environmentally, and economically. To maximize these aspects, given the size of the mining industry, the companies must utilize and adapt technologies from other industries that have greater critical mass, such as above ground energy systems.

This paper discusses the range of aspects that need to be addressed before alternative energy systems, such as hydrogen fuel cell technology, can progress to the next stage of review/testing that, depending on results, could lead to larger scale underground usage in the future.

As with any industry, before the underground mining industry can utilize a new technology such as an energy system for mobile equipment, a large number of aspects must be considered as part of a “change management” or “gated” approach that would include: health and safety risks, regulatory, system fit within mining process, technical risks, operating and capital costs, etc. Mining companies have shown on numerous occasions that they are willing to support the development of alternative energy systems once all risks have been reduced to acceptable levels. An example of this support following a risk management process is the hydrogen fuel cell locomotive that was demonstrated at the Campbell Mine.

Several aspects must be considered by the industry in any drive to introduce new technologies within the context of a producing underground mine. This paper presents several operational and support aspects that will evaluate the relevance of alternate energies, with emphasis on hydrogen power systems: operational drivers, commercial supply of technology, support system requirements, health and safety overall and at all stages, capital and operating costs, mine production strategies, corporate philosophy to technology, and the role of governments supporting and participating in technology application and regulatory development.

There are many hurdles to overcome prior to the introduction of new technologies such as hydrogen-propelled and powered underground equipment. The mining industry has previously and is presently supporting the development of new technologies but further work is required prior to implementation. The introduction of alternate energy technology requires a step-wise progression from applicability to the mining industry, to proof of concept testing in mines, to development of generic infrastructure, power systems and regulations, to whole operating system studies (including production operation of fleets), to detailed studies of cost and risk versus benefits. We are now at the proof of concept testing stage and poised to enter the development stage.

At some point in time, corporate decisions will be taken on the adoption of alternate energies. These decisions will have to be based on performance, availability and participation of technology developers, regulatory agencies and support organizations. Infrastructure decisions must be made at the mine design stage, which begins several years prior to going into production. Similarly, extensive studies will be required to modify existing operating infrastructure to adopt new energy sources.

2 0 0 7 I N T E R N A T I O N A L S Y M P O S I U M O N F U E L C E L L S A P P L I E D T O M I N I N G

There are presently several issues that the mining industry is facing, such as underground air quality, deep mining, and greenhouse gas emissions, which could be addressed by the application of alternate energies.

The timeframe for major implementation of alternate energies is therefore long term. The participation of all stakeholders will be required, as will be the funding and support from governments.

F. Delabbio, Rio Tinto, Brisbane, Queensland, Australia, D. Starbuck, Newmont, Carlin, Nevada, United States, A. Akerman, CVRD Inco, Copper Cliff, Ontario, and M.C. Bétournay, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Ottawa, Ontario November 2007 | 101

executive summaries

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Mine site hydrogen storage and delivery models With fuel cell mining applications demonstrated, it is appropriate that alternatives for delivering hydrogen to underground equipment be considered. In particular, it is critical that storage and delivery systems of hydrogen for routine use be designed and tested, and that related capital and operational costs are available for possible extrapolation for mines in the future. Hydrogen system aspects to be reviewed include the following, fully vetted and tested to meet basic operational requirements: • All facets of hydrogen use and related risks be defined and hazards mitigated.

• Availability and distribution of hydrogen be as dependable as current mine vehicle energy sources and stationary application energy sources within the context of mine extraction systems.

• Operating requirements are simple and reliable.

• Comprehensive mine regulations are in place.

Mine site infrastructure for storage and delivery of hydrogen must be standardized and acceptable for routine and safe industrial use before fuel cell technology is adopted as a major power source. As an essential initial step for demonstrating this requirement and to effectively introduce this technology, mine hydrogen infrastructure must be validated in the context of an operating mine. This would estab-

lish system design and operation, safety features, risk control means, and mine operational requirements. The infrastructure would be designed, operated, monitored, and used for supporting hydrogen vehicle and stationary applications.

As a starting point, an initial study reviewed possible options for production, storage, and delivery of hydrogen for underground equipment, including the assessment of economical, operational, technical, and health and safety risks.

The delivery of choice would be from a surface fuel reformer or delivery from remote plant production, surface storage would be in a compressed mode and the distribution of hydrogen through piping.

From this information, a demonstration project plans to construct surface and underground mine infrastructure and carry out research to provide norms and data for basic operational requirements. This paper outlines the selection basis for the infrastructure among possible storage and delivery options and the content of the phases.

The figure presents a schematic view of the infrastructure planned.

•

•

• •

• Schematic view of hydrogen storage and delivery mine infrastructure components

M.C. Bétournay, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Ottawa, Ontario G. Desrivières, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Val-d’Or, Quebec, D. Eastick, HATCH, Sudbury, Ontario, F. Delabbio, Rio Tinto (with HATCH at time of research), Brisbane, Queensland, Australia, and K. Curran, Air Liquide Canada Inc., Ottawa, Ontario 102 | CIM Magazine | Vol. 2, No. 7

This theoretical study has the following objectives: Define the functional requirements for the design of a hydrogen storage and delivery system for surface and underground use.

Define the basic engineering specifications and drawings related to the functioning of hydrogen infrastructure for an underground mine and the related ventilation and sensor requirements.

Establish construction specifications for a model mine hydrogen infrastructure system.

Perform a quantitative risk assessment and field hazard evaluation on the hydrogen infrastructure as designed for NRCan’s Experimental Mine.

Establish risk control means, emergency response procedures and infrastructure, and site review requirements and schedule; the infrastructure design will not permit credible leaks for significant periods of time larger than that permitted by the ventilation available.

The infrastructure will be planned and built according to existing standards. A panel of national and international peer reviewers will evaluate the content, progress, and results of the project, as well as basic infrastructure engineering specifications, generic plans, technical drawings, and the plan for site construction. An industrial committee will review the project from an industrial application and operational feasibility basis.

executive summaries Fuel cell aspects and future developments needed for mining

The benefit of increasing hydrogen storage results in longer in-service periods. Metal hydrides represent the safe low-pressure and high-storage means, but at high cost and limited lifespans in service. Hydride storage capacity is not anticipated to improve in the medium term, and using compressed hydrogen will still require frequent refuelling or container swapping, not viable from an operational perspective.

The industry requires that a lower cost method of storage that is rupture-safe be available with capacities near that of metal hydrides. High-pressure metal hydride storage, using less metal hydride, could provide this possibility. However, there is currently insufficient testing of vessels and hydrogen storage-release with large pressurized hydride quantities.

Fuel cells will permit the simplification required for safe mine automation because they are solid state devices.

Improved reliability and power loss reduction could be possible by eliminating moving parts (drive shafts, transmissions), replaced, for example, by wheel motors. Power plant and power train electrification will greatly enhance “intelligent” controlling ability and information exchange between the vehicles and their control base in tele-remote operations.

Power density becomes an important issue for underground production vehicles; an improving trend is expected to continue for fuel cells. Under acceptable vehicle designs and weight requirements, this increased power can supply larger hydraulic pumps to power larger payload capacities, and larger traction motors for more efficient muck retrieval from draw-points and less expenditure of energy.

Basic fuel cell power plant component functions will not significantly be improved upon. What can be improved in the near term will come from modifying system design and integration, e.g. a major fuel cell manufacturer offers a power module that includes the fuel cell stacks, hydrogen purging, membrane humidification, and cell voltage monitoring, all in an enclosure with convenient connections. The system designer is left with less critical balance-of-plant design such

as the air management and cooling systems and the overall controls, communication, and display. This will lead to increased standardization and reliability, increased power density, and decreased costs.

An important modification that can be brought to power plant architecture for near-term improvement will be in the area of hybrid design, using fuel cells and another power source such as rechargeable batteries or ultra-capacitors.

While some savings in hydrogen use would be made this way, the batteries cannot be used for long periods of time. Optimization of the state of charge of the batteries versus use of fuel cells would have to be ongoing through programmable logic controllers.

To maximize the potential value from an orebody, the mine must be efficient and overall cost-competitive. Providing miners with the most appropriate equipment is critical for this. Therefore, in the design phase, the mine layout needs to take into account the orebody and the equipment options available so machine production capacity can be properly utilized.

Given the possibility of having a higher power rating and productive capacity for smaller loaders, it may become more economical to look at more continuous production in larger deposits using a focus on one drawpoint, as opposed to the conventional batch process. Larger loader payload, and smaller sized loaders and headings (lower development cost) would surpass the economics of truck ramp haulage (and the need for trucks) and make loader dumping to ore passes on one or several levels a simpler and less costly alternative.

Fuel cells offer the advantage of portability of power, i.e. power can be used when and where needed rather than be dependent on costly electrical infrastructure hook-ups. New headings can be continued uninterrupted with take-off power available for fans and other equipment that could easily use the mobility of fuel cell power vehicles on main and sub-levels. Smaller mines with widely separated extraction areas would also benefit.

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Several proof-of-concept projects have been successfully carried out to demonstrate the applicability of fuel cells in underground mines. Several other projects and studies are required to provide practical developments for hydrogen fuel cell technology for the mining industry.

A.R. Miller, D.L. Barnes, Vehicle Projects LLC, Denver, Colorado, USA M.C. Bétournay, M. Laflamme, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Ottawa, Ontario, G. Desrivières, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Val-d’Or, Quebec, and F. Delabbio, Rio Tinto, Brisbane, Queensland, Australia November 2007 | 103

executive summaries

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Underground fuel cell loader design and performance Underground mining is the most promising application in which fuel cell vehicles can compete strictly on economic merit. It faces challenges from the health and safety deficiencies of trackless equipment such as diesel particulate matter.

Furthermore, it must expect an energy cost and alternative scenario much different than its current dependability on diesel fuel.

Building on a successful construction and testing of an underground fuel cell mine locomotive, a 160 kW, 23 metric ton fuel cell battery hybrid mine loader has been developed.

The base vehicle consists of an R1300 Caterpillar™ dieselpowered 165 hp (123 kW) 3.7 yd3 loader (see figure).

Rear view of fuel cell loader power plant showing one hydride bed (forefront)

A number of mine operation requirements were used to design the power plant, its capacity, the electric motors, and hydrogen storage for a 61⁄2 hour operating period (baseline for a 10-hour shift). The unit was designed and tested to operate under demanding conditions: a 15% ramp incline, shock and vibration (commonly in the 2 to 8 g range with maxima reaching 50 g), and variable air quality conditions featuring dust and diesel particulate matter concentrations.

Based on measured industry duty cycles, the loader powerplant uses nominally 90 kW PEM fuel cell stacks supplemented by a 70 kW transient-power nickel metal-hydride (NiMH) battery set. The hybrid design was chosen because of high but narrow power peaks in the duty cycle (30 to 60 seconds long) and the ability to recover some of the vehicle kinetic and potential energy through regenerative breaking. Given the repetitive duty cycle of loading and dumping from one mine level to another, activity for one shift would require 14 kg of stored on-board hydrogen. In comparison to the single motor for hydraulic and traction duties, separate traction and hydraulic motors will give improved performance. To achieve refuelling time constraints, a special cooling system was applied to the metal hydride storage allowing for hydrogen refuelling in the same timeframe as for diesel loaders, 10 to 15 minutes.

The power plant and power delivery system is a complex network of several micro-controllers. The loader user interface controller is responsible for overall control of the vehicle.

D.L. Barnes, Vehicle Projects LLC, Denver, Colorado, USA, O. Velev, AeroVironment Inc., Los Angeles, California, USA, B. Brown, Caterpillar Inc., Peoria, Illinois, USA, P.M. Golben, Ergenics Corp., Ringwood, New Jersey, USA, G. Desrivières, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Val-d’Or, Québec, and M.C. Bétournay, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Ottawa, Ontario

It takes commands/display information from/to the user. The fuel cell engine controller (FCEC) is responsible for the control of the fuel cell power plant components (air compressor, water pump, data acquisition system, etc.). It will maintain the state-of-charge of the battery pack in an optimum range.

The FCEC will take commands from the user interface computer and will send information on the state of health of the power plant, the battery pack, and the various DC/DC devices on the power bus. It will also maintain the temperature in the metal hydride bed so that the pressure of the delivered hydrogen is within safe limits for mining operations. Hydrogen usage and amount of fuel left in the metal hydride tanks will be closely monitored and reported to the user interface controller. A multi-step process was used to verify proper operations of individual components.

Prior to underground demonstrations, the fuel cell mine loader has gone through a debug, tune, and test plan. It is currently undergoing surface performance tests that will be compared against baseline tests performed on the diesel R1300. Major subsystems, including the power module, cooling, propulsion, hydraulics, and supervisory control, will be adjusted for performance optimization. The performance tests will address the overall vehicle performance and will include power response, acceleration and deceleration rates, braking, weight distribution, lift/tilt force, steering, stability, cavitations, and productivity testing. All testing will result in a fully functioning loader ready for underground where a fully autonomous stand-alone monitoring system will be installed on the unit and all power-related data; as well, speed and hydraulic pressures will be recorded. The unit will undergo testing in two or three different underground production mines with several production cycling routes in each mine.

executive summaries Environmental and ventilation benefits for underground mining operations using fuel cell-powered production equipment

They could also generate significant reductions in the amount of ventilation a mine needs to supply when compared to dieselized operations; this would further decrease a mine’s energy consumption, its associated greenhouse gas impact, and also reduce a mine’s significant ventilation-associated costs. Fuel cell-powered equipment also has the advantage of lower noise and heat production compared to its equivalent diesel-powered counterpart. The degree to which fuel cells can generate ventilation benefits in underground mines depends upon a number of operational parameters and minespecific qualifiers, such as current ventilation control or management, mine depth, inherent dust conditions, and minimum velocity requirements.

However, another major consideration in the introduction of fuel cells in underground mines will be the safety requirements associated with diluting and removing the potentially explosive hydrogen in the event of a gas leak. In outside surface applications, it is possible to use dispersion, buoyancy, time, and lack of ignition sources as mitigating factors in deriving a low risk of an explosion. In underground operations these factors change. Dispersion and buoyancy are limited, time may not be available, and in non-coal mines, ignition sources are not typically controlled. When a hydrogen leak occurs, the availability of sufficient ventilation to dilute and effectively remove the gas will be critical; consequently, ventilation may be the prime risk controlling factor.

This paper evaluates the potential benefits of replacing diesel engines with fuel cells in powered production equipment, discusses the mitigating qualifiers that could limit ventilation savings, and evaluates solutions to retain and maintain an additional ventilation capacity in the event of an emergency situation such as a hydrogen leak from the fuel cell stack or its distribution system.

This study has shown that if fuel cells were to replace the diesel engine of the primary production equipment in Canadian underground metal mines, less ventilation would be required. The degree of ventilation reductions in the six mines analyzed range from 9% for a future deep scenario to 25% for current metal mining scenarios. On combining all the ventilation cost components, primary and auxiliary fans, heating and cooling, the cost reductions varied from 20% for a future deep scenario to 38% for the same mine under its current conditions.

It has also been shown that similar order savings may be achieved by other means for specific mines, such as changing the heating fuel, ventilation demand controls, or as a result of changing to quality-based diesel regulations. However, this does not negate the advantages of fuel cells. The savings can be incremental but other limitations imposed by such considerations as a minimum air velocity, blast clearance, or dust conditions may be reached before the full combined potential benefit is reached.

One of the most dramatic benefits was the reduction in GHG emissions, which range from 27% for a future deep scenario to 41% to 43% for current operations. A major component of these lowered emissions is the reduced consumption of diesel fuel.

One particular challenge to the introduction of fuel cells underground is the delivery, storage, and dispensing of hydrogen to fuel the mining equipment at underground refuelling stations. Large financial commitments may be required in order to provide and maintain a spark-free environment along the hydrogen distribution lines, refuelling stations, development and production workings, as well as throughout the entire mine. Failing this, large volumes of air would be required, potentially larger than that currently supplied for the dilution of diesel fumes, to ensure leaks are quickly diluted to 50% of the LEL. These volumes could be technically impractical and uneconomical.

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Over the last few years, a multi-faceted feasibility study evaluated the introduction of hydrogen fuel cell-powered equipment into underground mines to replace diesel enginepowered equipment. The analysis has shown that under normal operating conditions, fuel cells could at the very least be an environmental and health benefit by eliminating combustion engines and their unwanted by-products.

C. Kocsis, S. Hardcastle, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Sudbury, Ontario, and D. Eastick, HATCH, Sudbury, Ontario November 2007 | 105

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Economic aspects to fuel cell mine applications Canadian mines are highly mechanized and predominantly use diesel equipment in primary ore handling. The recognition that diesel emission particulate matter (DPM) could be carcinogenic is of concern to all industry stakeholders. Fuel cell technology provides a clean solution, which will allow for significant reduction in underground ventilation dilution requirements.

Since underground ventilation represents about 40% of mine electrical consumption, significant savings and the elimination of DPMs would be realized. Other issues, such as reduction of greenhouse gas emissions and simplification of maintenance and tele-operation of production, would also be registered.

Table 1. Annual operating cost comparison

Operation Maintenance (LHD) Fuel (8 yd3 LHD) Fuel tanks maintenance Cooling of hydride beds Sub-total (operation) Ventilation Heating Fans Auxiliary Primary Sub-total (fans) Sub-total (ventilation) Total

In order to define the economic advantages of using hydrogen fuel cell vehicles, a detailed study of operating and capital costs associated with underground loaders and power supply infrastructure has been carried out. A comparison of operational and capital requirements for different technologies can best be carried out and interpreted using a representative case study. This article considers information related to a medium-sized mine producing 4,300 tons per day in Québec, using a work schedule of two shifts of 10 hours each per day. The shallow mine operates 624 shifts per year and its ventilation system runs an average of 144 hours per week with an airflow of 387 m3/s. The diesel loader is an 8 yd3 payload capacity model; the fuel cell loader reference is the Caterpillar R1300 fuel cell-hybrid version, first to be powered by fuel cell technology from which an 8 yd3 fuel-cell hybrid cost will be extrapolated.

The results show that for a typical medium-sized mine, operating costs and infrastructure costs are less for the fuel cell option versus diesel (see table). The reverse occurs for capital costs owing to the currently higher cost of fuel cells versus diesel engines. This disparity is expected to decrease given the decline in price associated with fuel cell technology advances. Related market issues for fuel cell manufacturers are also presented. Despite the difference in cost, the resources and mine infrastructure required to operate underground loaders, and base design of the mine loader, is similar for diesel and fuel cell versions. The industry therefore does

R. Lacroix, M.C. Bétournay, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Ottawa, Ontario, M. Laflamme, Mining and Mineral Sciences Laboratories, CANMET, Natural Resources Canada, Val-d’Or, Québec A.R. Miller, and D.L. Barnes, Vehicle Projects LLC, Denver, Colorado, USA 106 | CIM Magazine | Vol. 2, No. 7

Diesel

Fuel Cell Hybrid

Difference between Diesel and Fuel Cell Hybrid

$2 ,090,440 $412,300

$2,502,740

$2,066,500 $847,400 $20,000 $82,600 $3,016,500

$23,940 $(435,100) $(20,000) $(82,600) $(513,760)

$1,033,600

$846,300

$187,300

$619,300 $541,900 $1,161,200 $2,194,800 $4,697,540

$494,200 $300,500 $794,700 $1,6401,000 $4,657,500

$125,100 $241,400 $366,500 $553,800 $40,040

not have considerable changes in the manner in which it operates its production equipment.

Cost-benefit differences between diesel and fuel cells are only one of the economic considerations in replacing a mainstay technology such as diesel internal combustion engines for mine extraction. There are several market issues industry needs to understand before it routinely applies fuel cell technology.

The first is the significant rate in technology advancement that has existed and is expected to continue. This has considerable ramifications with respect to the availability of manufacturer support involved in short-term technology renewal versus the requirement to power mining vehicles with long-term service expectation. If the technology cannot be supported because of the unavailability of technology-sensitive parts (e.g. electronic parts) or if a warranty for the power plant cannot be provided beyond a few thousand hours of operation, another means of making the technology attractive is necessary.

While the underground mining market is smaller than the automobile market, the mining industry expects that technology manufacturers will carry fuel cell and power plant products to power the range of vehicle types used. The industry also requires that sufficient numbers of power plants will be produced in the shorter term to meet conversion of current diesel vehicles.

Economics is a big driver in adopting a new technology, but dependability, in the largest sense, including testing and regulatory considerations, will also have to be addressed before fuel cells will be accepted. Industry must also remain technologically relevant by considering using fuel cells to join a trend that is already underway in other important sectors, such as surface vehicles.

executive summaries Storage and safety issues of hydrogen as an energy vector

To achieve penetration on the energy market, hydrogen must overcome obstacles in the areas of storage, safety, and infrastructure. These constitute recurring issues that proponents of hydrogen demonstration projects have to face. The storage issue is closely linked to recurrent costs and immediate performance issues, and safety to acceptance of the technology by end-users and particularly by local jurisdictions.

One of the most important considerations is the onboard storage of hydrogen for transportation applications, where large performance gaps exist between the current state of the technology and user expectations. In order to develop and demonstrate viable hydrogen storage technologies for cars, a set of gravimetric and volumetric system targets have been proposed by the US Department of Energy, based on achieving a driving range of 500 km for a hydrogen-powered vehicle. A factor of 2 to 3 improvement in both hydrogen storage capacity and energy density is needed, along with several other performance goals. Another key issue is safety. Although some of the safety issues can be arguably assigned to misperceptions, hydrogen has specific properties that have to be addressed, particularly in confined geometries where the risk of hydrogen detonations becomes an issue.

In this paper, an overview of storage and safety issues and possible solutions are presented. Notably, recent advances in storage of materials discussed are and current activities on hydrogen safety within the context of establishing a hydrogen infrastructure are discussed.

the Department of Energy, and it is difficult to see how they could be met. A promising alternative relies on the chemical or physical binding of hydrogen with other elements, or through the chemical storage of hydrogen in organic liquids.

Some of these advanced storage methodologies already have niche applications (such as metal hydrides in portable applications and submarines), but none of them has yet met all of the ambitious DOE requirements for cars. Classical storage technologies such as compression and liquefaction are not, however, show-stoppers for technology deployment, depending on the application.

Acceptability by the public and local jurisdiction very much hinges on the risk or the perception of risk of using an unfamiliar fuel such as hydrogen, which must be used with the same caution as when handling any fuel. Comparative analyses of hydrogen energy systems with other fuels such as methane and propane do not show that hydrogen represents a particular risk when used in refuelling stations, for example.

Using hydrogen in confined areas must, however, be done with caution due to the propensity of hydrogen releases to flame acceleration. Safety assessment of hydrogen energy systems must take into account the specific properties of hydrogen, which may be beneficial in terms of dispersion rate or detrimental in terms of ignitability. Such analyses are hampered by the limited data available on failure rates of components and issues such as the probability of igniting a hydrogen release. The storage medium plays an integral part in safety analysis: storing hydrogen as a liquid or a gas results in very different dispersion behaviour, and using solid state storage technologies may present new challenges from that perspective in terms of toxicity and flammability.

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The challenge of satisfying ever-rising global energy needs in the face of depleting fossil fuel resources, coupled with an increased awareness by the public of the environmental impact of our energy system, have brought attention to the possibilities of using hydrogen as an energy vector in a clean and renewable energy system.

Conclusions are that of the technical barriers to the deployment of hydrogen energy technologies, storage and safety concerns are most often cited as the most critical. The storage densities of classical storage technologies such as compression and liquefaction are still far from the goals of

P. Bénard, Institut de recherche sur l’hydrogène, Université du Québec à Trois-Rivières, Trois-Rivières, Québec

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executive summaries

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Ensuring adequate safety when using hydrogen as a fuel Demonstration projects using hydrogen as a fuel in various industrial and non-industrial applications are becoming very common. Often, these projects rely on project-specific risk evaluations to support project safety decisions. This is necessary because regulations, codes, and standards (hereafter referred to as standards) are just being developed. This paper reviews some of the approaches being used in these evolving standards and techniques that demonstration projects can implement to bridge the gap between current requirements and stakeholder desires.

Current efforts to establish appropriate safety levels for the use of hydrogen as a fuel involve many technical organizations. The standards that are being prepared to address hydrogen safety contain a mix of performance-based and prescriptive requirements.

Functions of integrated safety management

The prescriptive-based language prescribes specific design solutions. Examples of prescriptive requirements include: • For fuel tank connections above 2 in. (5.1 cm) nominal diameter, only welded connections will be acceptable.

• One or more finished fuel tanks will be drop tested at ambient temperature without developing a leakage rate above a defined value.

The performance-based language is being used for several reasons, including: (1) concern that establishing specific design solutions too early will stifle invention; (2) sparse performance data necessary to support selection of design approaches; and (3) a risk-adverse public that is unwilling to accept losses that were incurred in developing previous prescriptive design standards.

•

•

Performance-based requirements can take the form of: “A Failure Modes and Effects Analysis (FMEA) or equivalent reliability analysis intended to identify failures which have significant consequences affecting the fuel cell power system safety, shall be submitted to the testing agency for evaluation.”

“The device shall be designed and constructed to avoid any reasonably foreseeable risk of fire or explosion posed by the hydrogen generator itself or by the gases, liquids, dust, vapours, or the other substances produced or used by the device.”

Such wording implies that the manufacturer or project manager must produce and document an acceptable level of

D.A. Coutts, Washington Group International, Aiken, South Carolina, USA

108 | CIM Magazine | Vol. 2, No. 7

risk. If accomplished using a comprehensive and systematic process, the demonstration project risk assessment can ease the transition to widespread commercialization.

Compliance with performance-based requirements must be done using a well-founded technical approach. In addition, for many demonstration projects, the standards are not fully evolved. As such, it is necessary to supplement the existing requirements with risk-based decisions. The paper presents several techniques that may be used to support such decisions and support performance-based designs. The approach permits evaluation of multiple demonstration project risks that are associated with proof-of-concept projects for the mining industry. These include: safety risk, project risk, and fiscal risk. In managing the safety risk, a five-function process, which is derived from Integrated Safety Management (ISM), is recommended. The five functions (define the scope of work, analyze the hazards, develop and implement controls, perform work, encourage feedback and continuous improvement) are illustrated in the figure. The objective of ISM is to systematically integrate safety considerations into management and work practices at all levels.

The paper also presents a method that demonstration projects, such as those planned for the mining industry, can implement that will satisfactorily demonstrate compliance with evolving performance-based requirements, bridge gaps where existing standards don’t provide coverage, and properly manage safety risk. The techniques, if properly implemented, can then reduce both project and fiscal risks.

emg abstracts

Exploration and Mining Geology Journal Volume 16—Numbers 1 and 2 Structural Controls on Massive Sulfide Deposition and Hydrothermal Alteration in the South Sturgeon Lake Caldera, Northwestern Ontario A. Hamid Mumin, Department of Geology, Brandon University, S.D. Scott, Department of Geology, University of Toronto, A.K. Somarin, Department of Geology, Brandon University, and K.S. Oran, Connor, Clark & Lunn Synvolcanic structures played a fundamental role in the genesis, morphology and siting of volcanogenic massive sulfide ores and associated hydrothermal alteration in the Archean South Sturgeon Lake caldera complex. The most voluminous and persistent hydrothermal venting and massive sulfide deposition occurred along synvolcanic rifts and grabens associated with faults and tectonic fissures that created permeable fracture zones deep enough to access the underlying hydrothermal reservoir. The type of fracturing is highly variable and changes with the composition, competency, degree of consolidation, and alteration of host rocks. Synvolcanic structures and fracture styles vary according to the amount and type of tectonic movement. In texturally uniform footwall rocks, the distribution of alteration zones was controlled by the morphology of the structural conduit. Some crosscutting synvolcanic structures, alteration zones, and intrusions appear as stratiform units at the present erosion surface.

Fine-grained Quartz Formed by the Sedimentation of Hydrothermal Precipitates in Mineral Veins: An Example from Tyndrum, Scotland, UK I.M. Platten and S.C. Dominy, Snowden Mining Industry Consultants Ltd Sedimented hydrothermal precipitates of silica, now fine grained quartz, are described from a PbZn-bearing vein system. Thin section examination shows that much of the fine-grained quartz is present as elongate prisms. Deposition of the fine-grained sediment accompanies normal in situ drusiform growth of quartz and other vein minerals. It is argued that much of the suspended silica was present as quartz at the time of deposition or was converted from amorphous silica almost immediately after deposition. Hydrothermal sediments and their distribution potentially provide information on flow directions and velocity in veins. Plugs of sediment obstruct vertical flow and lead to local flows with large horizontal components. It is shown that sedimentation features occur in other deposits and can involve other minerals. If the features seen here can be scaled up to the size of major veins, they may result in up and down dip variations in mineral assemblages and abundances, which may affect grade.

40Ar/39Ar

Geochronology of Alteration and Petrogenesis of Porphyry Copper-related Granitoids in the Darreh-Zerreshk and Ali-Abad area, Central Iran A. Zarasvandi, Department of Geology, Shahid Chamran University, S. Liaghat, Department of Earth Sciences, Shiraz University, M. Zentilli, and P.H. Reynolds, Department of Earth Sciences, Dalhousie University

Darreh-Zerreshk and Ali-Abad are two relatively small porphyry copper-type deposits in Yazd Province in central Iran. They are located within the central Iranian volcano-plutonic belt, formed above the collisional convergent margin of the Iranian lithospheric plate from the late Eocene to the Miocene. This paper discusses the geochemical characteristics of the igneous rocks, and 40Ar/39Ar geochronology of plutons and alteration phases associated with the Darreh-Zerreshk and Ali-Abad deposits. The deposits are spatially associated with igneous complexes that consist of older and barren granites intruded by intermediate-composition granitoids. Porphyritic diorites, quartz monzodiorites, and granodiorites show enrichment in light rare earth and large-ion lithophile elements, depletion in middle rare earth elements, and have no negative Eu anomaly. These intermediate-composition Excerpts taken from abstracts in EMG, Vol. 16. granitoids were derived from melting of the upper Subscribe—www.cim.org/geosoc/indexEMG.cfm mantle or lower crust, and their differentiation was controlled partly by fractionation of hornblende.

November 2007 | 109

cmq abstracts

Canadian Metallurgical Quarterly Volume 46窶年umber 3

Inhibiting Quartz-Bitumen Coagulation by Complexing Agents W. Gan, M. Cao, B. Crozier, and Q. Liu, Department of Chemical and Materials Engineering, University of Alberta The interaction between bitumen and quartz in aqueous solutions containing multivalent metal cations was studied with the objective of recovering residual bitumen from Athabasca oil sands froth treatment tailings. It was observed that the bitumen-quartz coagulation caused by hydrolysable multivalent metal cations (Fe3+, Fe2+, Ca2+) was reduced or prevented by complexing agents including citric acid, oxalic acid, and EDTA. Removal of free multivalent metal cations through complexation by organic acids was considered the principal mechanism for preventing bitumen-quartz coagulation as a consequence of increased electrostatic repulsion between bitumen and quartz.

Characterizing Frothers Using Water Carrying Rate P. Moyo, C.O. Gomez, and J.A. Finch, Department of Mining, Metals and Materials Engineering, McGill University The recovery of fine hydrophilic gangue in flotation is related to the recovery of water. Water is carried by bubbles into and through the froth. The amount transported (entrained) depends on bubble size, gas rate and the subject of this paper, frother type. To isolate the effect of frother type from that of bubble size, gas holdup is used as the correlating variable. It is shown that the common frothers can be grouped into four families based on the water carrying rate-gas holdup relationship.

Effect of Phosphate and Fluoride on the Flotation of Aluminum-Silicates with Cationic Collector Y.H. Wang, Y.H. Hu, and X.Q. Chen, School of Resources Processing and Bioengineering, Central South University Changsha Phosphates and fluorides are adopted as regulators for the removal of silicates from diasporic-bauxite by flotation. Micro-flotation tests show that sodium hexametaphosphate has a stronger depressing power on diaspore than sodium fluorosilicate at pH 6.5 while using dodecylamine chloride as a collector. Zeta potentials of diaspore and silicate minerals become more negative in the presence of both sodium hexametaphosphate and sodium fluorosilicate. Fourier transform infrared spectroscopy studies show that sodium hexametaphosphate interacts with the Al sites on the diaspore and silicate minerals to form P-O-Al bonds through PO2 groups.

Anisotropic Character of Talc Surfaces as Revealed by Streaming Potential Measurements, Atomic Force Microscopy, Molecular Dynamics Simulations and Contact Angle Measurements J. Nalaskowski, B. Abdul, H. Du, and J.D. Miller, Department of Metallurgical Engineering, University of Utah A study of the interfacial properties of the basal plane and the edge surfaces of talc is described in this paper. In the case of the edge surface, the zeta potential increases at higher pH values which can be attributed to the hydration of surface magnesium ions. The differences in the hydration of the basal plane and the edge of talc are revealed from molecular dynamics (MD) simulations. Improved quality of the edge surface was achieved by sandblasting (erosion with alumina) and research regarding the characteristics of this edge surface is in progress.

Characterizing Frothers Using Gas Holdup F. Azgomi, C.O. Gomez, and J.A. Finch, Department of Mining, Metals and Materials Engineering, McGill University A way to characterize (classify) frothers using gas holdup as a surrogate for bubble size was explored. Nine surfactants with a range in chemical structures were selected and tested in a bubble column instrumented to measure gas holdup and superficial gas velocity. A correlation between frother type and gas holdup was 110 | CIM Magazine | Vol. 2, No. 7

cmq abstracts

observed: for alcohols, gas holdup increases with hydrocarbon chain length and the effect is the same whether the chain is branched or straight; for polyglycols, gas holdup increased with the number of propoxy groups. The ranking by gas holdup gave the same result as other, more complex frother characterization techniques.

Coal and Potash Flotation Enhancement by Use of Clay Binder D. Tao, G.L. Chen, M.M. Fan, X.H. Zhou, C. Zhao, University of Kentucky, M. Aron, and J. Wright, Georgia-Pacific Resins, Inc. The adverse effects of clay particles on coal and mineral processing operations such as gravity separation, flotation, filtration, and thickening are well known in the mining industry. The present study was conducted to evaluate the performance of a clay binding agent developed by Georgia-Pacific Resins, Inc. in enhancing coal and mineral flotation performance. Mechanical and column flotation tests were carried out using coal and potash samples. Process parameters investigated included slurry solids percentage, impeller rotation speed, binder dosage, collector dosage, etc. Flotation results show that the use of GP reagents significantly enhanced flotation efficiency under different conditions. The required binder dosage and conditioning time were about 0.45 kg/t and 0.5 to 1 minutes, respectively. More significant improvements in process performance were observed at higher solids percentage and higher impeller rotation speed.

Flotation Thermodynamics: Can we Learn Anything from it?

J.S. Laskowski, Department of Mining Engineering, University of British Columbia The role of bubbles in the transportation of hydrophobic particles to a froth phase in flotation is well established. However, analysis of available data reveals that the bubbles are important by and large because they are the primary means of transportation of flotation agents to the points of bubble-to-particle attachment. The common view is that bubbles attach and lift hydrophobic particles to a froth layer. The thermodynamic analysis presented in this paper leads to the conclusion that the particles which become hydrophobic during the particle-bubble collision and attachment can also be captivated by bubbles.

Solvent Layer Thickness on Bubbles of Different Size Blown in Air H.M. Tarkan, S. Gélinas, Department of Mining, Metals and Materials Engineering, McGill University, C. Aspinall, University of Newcastle, Faculty of Engineering and the Built Environment, Chemical Engineering, and J.A. Finch, Department of Mining, Metals & Materials Engineering, McGill University Solvent-coated air bubbles in the Air-Assisted Solvent Extraction (AASX) process achieve the dual role of high solvent specific surface area and ease of phase separation. The thickness of the solvent film is of practical and fundamental interest but difficult to measure directly in the process itself. As an approach, interferometry was used to measure the time dependent thickness of a film formed on an air bubble blown in kerosene-based solvents. The decrease in film thickness is measured over time. To illustrate, for a 20 mm diameter bubble blown in LIX/kerosene (1:3) the initial thickness was ~ 3 µm which decreased over 10 minutes to a final rupture thickness of 500 nm. The film thickness and time to rupture decreased as bubble size decreased from 25 to 10 mm.

Correspondence to prior indirect estimates of solvent layer thickness in AASX is examined.

Novel Processes for Treatment of Syncrude Fine Transition and Marine Ore Tailings X.S. Yuan and W. Shaw, Bitumen Production Development, Syncrude Canada Ltd. Syncrude Canada Ltd. has compiled a substantial amount of work on tailings research and development to determine the most effective treatment and deposition processes to increase reclamation options, water reuse and thermal energy recovery. This research has shown that the conventional processes using a single flocculant, a single coagulant or a coagulant-flocculant combination are ineffective for transition and marine ore tailings. On the other hand, new processes including Coagulation-Flocculation-Coagulation (CFC), Flocculation-Coagulation (FC) and Excerpts taken from abstracts in CMQ, Vol. 46, No. 3.

Flocculation-Coagulation-Flocculation (FCF) have been found to be acceptable Subscribe—www.cmq-online.ca options. However, the FCF process outperformed the CFC and FC processes because the FCF process produced huge flocs resulting in fast initial settling rates.

November 2007 | 111

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