cim magazine november 2007

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February/février 2006 www.cim.orgNovember • novembre 2007 www.cim.org

Provisional programs | Programmes préliminaires

40th Annual Canadian Mineral Processors Operators’

ConferenceLa 40e Conférence annuelle

des minéralurgistes du Canada

Maintenance/Engineering Mine Operators’ Conference

Le Colloque sur l’ingénierie de maintenance

et l’exploitation minière

Special section

Mining in Saskatchewan

C’est hot dans les PrairiesLes mines en Saskatchewan

et au Manitoba

Great power on the prairiesand Manitoba

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• Need to check light elements? Ask about our revolutionaryInternal Vacuum Technology for Al, Si, Mg & P

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. . . Carry on with Innov-X.Innov-X Systems, the Innov-X Systems logo are trademarks of Innov-X Systems, Inc. in the United States and all other countries. All other marks are properties of their respective owners. ©2007 Innov-X Systems, Inc. All rights reserved.

Editor-in-chief Heather [email protected]

Section Editor Andrea [email protected]

Technical Editor Joan TomiukPublisher CIM

Published 8 times a year by CIM855 - 3400 de Maisonneuve Blvd. West Montreal, QC, H3Z 3B8Tel.: (514) 939-2710; Fax: (514) 939-2714 www.cim.org; Email: [email protected]

Subscriptions:Included in CIM membership ($140.00); Non-members (Canada),$171.20/yr (GST included; Quebec residents add $12.84 PST; NB, NF and NS residents add $24.00 HST); U.S. and other countries,US$180.00/yr; Single copies, $25.00.

Advertising Sales:Dovetail Communications Inc.30 East Beaver Creek Rd., Ste. 202Richmond Hill, Ontario L4B 1J2Tel.: (905) 886-6640; Fax: (905) 886-6615www.dvtail.com Account Managers: (905) 886-6641Joe Crofts [email protected] ext. 310Janet Jeffery [email protected] ext. 329

This month’s coverPhoto courtesy of Mosaic Potash.

Layout and design by Clò Communications.

Copyright©2007. All rights reserved.ISSN 1718-4177. Publications Mail No. 09786.Postage paid at CPA Saint-Laurent, QC.Dépôt légal: Bibliothèque nationale du Québec.The Institute, as a body, is not responsible for statements made or opinions advanced either inarticles or in any discussion appearing in its publications.

Printed in Canada

Pride of the prairies

The mining industry is an important economic contributor right acrossCanada. This holds true for our prairie provinces, home to a number ofworld-class operations spanning a variety of commodities. In Manitoba,

CVRD Inco and HudBay Mining have long reaped the benefits of strong nickeland zinc orebodies, while Saskatchewan remains the world’s leading producer ofuranium and potash.

This issue of CIM Magazine includes a special section on mining inSaskatchewan and Manitoba (p. 21). From major developments in uranium andpotash, through a number of new projects in gold, diamonds, rare earth miner-als, 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 produc-tion, attend the CIM Conference and Exhibition next May in Edmonton. A tech-nical session on potash operations will cover the most interesting developments,while a full-day workshop on uranium, hosted by Cameco experts, will be com-plimented by a technical session on uranium operations. There is a world ofactivity 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 alwaysremain a priority. The pride mining companies take in their safety performanceis obvious in this issue. See the articles on pages 14 and 19 for heart-felt sto-ries 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 employ-ees, and contributes to the long, successful careers many enjoy.

Heather EdnieEditor-in-chief

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

HISTORY88 California gold—Part 2 by R.J. Cathro

91 The evolution of shaft sinking systems—Part 3 by C. Graham and V. Evans

94 History of metal casting—Part 3 by F. Habashi

TECHNICAL SECTION98 This month’s contents

IN EVERY ISSUE4 Editor’s Message6 President’s Notes

Mot du Président75 Calendar

112 Bookshop113 Professional Directory

77 40th Annual Canadian MineralProcessors Operators’ ConferenceLa 40e Conférence annuelle desminéralurgistes du Canada

81 2008 Maintenance Engineering/Mine Operators’ ConferenceLe Colloque sur l’ingénierie de maintenance et l’exploitation minière

Provisional programs • Programmes préliminaires

COLUMNS53 The Supply Side by J. Baird

54 Student Life by D. Milstead

55 Innovation Page by G. Winkel and T. Joseph

56 Parlons-en par M. Brissette

58 Des canadiens à l’étranger par J.-P. Rivard

60 Canadians Abroad by J.-P. Rivard

62 MAC Economic Commentary by P. Stothart

64 Standards by G. Gosson

66 HR Outlook by B. Kirby

67 Engineering Exchange by H. Weldon

68 Eye on Business by A. Gabrielson

70 Mining Lore by A. Nichiporuk

CIM NEWS71 CIM welcomes new members72 CIM MES hosts senior Chinese

mining officialsObituaries

73 Quebec Branch golf tournament a huge successTournoi Géogolf 2007

74 CIM Distinguished Lecturers—an interview with David Lentz

CONTENTSCIM MAGAZINE | NOVEMBER 2007 NOVEMBRE

November 2007 | 5

36

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61

NEWS7 Sustainability taking forefront at

Queen’s Kinross helps bridge the gap betweenindustry and society

8 New sorting system breathes life intotalc mine An automated tool helps SherrittDynatec Minerals by C. Hersey

11 Underground uranium milling—a peekinto the future New process ‘ready to go’ whenopportunity knocks by D. Sarik

13 Haul roads: spend a penny, save apound Making changes to benefit a mine’s bot-tom line by M. Bouna Aly and R. Douglas

14 Elk Valley Coal wins international minerescue competition Hard work and dedicationmake for a winning team

15 New environmental course at UBC formining engineering Course promotes eco-friendly mining practices by F. Solomon

16 2005 survey of evaluation practices inthe mineral industry MES polled groupsworldwide by L.D. Smith

17 Getting the job done right An interview withManroc area manager Tracy Tremblay by C. Hersey

19 HVC team to the rescue A race to save aburied excavator operator

MINING IN SASKATCHEWAN AND MANITOBA

22 Saskatchewan’s mineral industry Themining industry is the catalyst for the renaissance ofthe province’s economy by P. Schwann

24 Tapping into Saskatchewan’s gold anddiamond resources The development andexpansion projects promise new life for theprovince by H.E. Robinson

28 Cameco looks to add one more to itsproduction lineup Millennium deposit addspower to the major uranium producer by C. Hersey

32 First Nations key to continued mininggrowth Partnering with aboriginal communities fortop-notch services and manpower by D. Zlotnikov

34 PotashCorp expansion projects in Saskat-chewan Big plans for fertilizer over the next fewyears by H.E. Robinson

36 Great Western to mine the periodictable’s best-kept secret A production deci-sion to come in 2008 by D. Zlotnikov

38 The timing is just right Victory Nickel’sMinago deposit could start up by 2010 by C. Hersey

40 Crowflight project under constructionUnderground mining set to begin next yearby D. Zlotnikov

43 Building up Rice Lake An update on newdevelopments by D. Sarik

44 McClean Lake update New expansion andmine developments underway by H. Ednie

LES MINES EN SASKATCHEWAN ET AU MANITOBA

45 L’industrie minérale de la Saskat-chewan : catalyseur pour la renais-sance de l’économie

46 Les Premières Nations détiennent laclé de la croissance de l’industrieminière

47 Tirer partie des ressources aurifères etdiamantifères de la Saskatchewan :projets de développement et d’expan-sion

48 Great Western prête à extraire le secretle mieux gardé du tableau périodique

49 La croissance d’une compagnie de fer-tillisants : les projets d’expansion dePotashCorp en Saskatchewan

50 Une autre mine pour CamecoLe moment est propice pour VictoryNickel

51 Expansion à Rice Lake52 Le projet Crowflight en construction

Mise à jour sur la mine McClean Lake

president’s notesThis 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 dis-cuss issues of common concern. The theme for the discussions centred on the three pillars of sustainabledevelopment—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 thatdescribed the successes (and failures) of what is being done. As a general observation, I am encouraged bythe progress being made in a lot of areas, particularly aboriginal and community involvement. I would suggestthere 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 pub-lic perception of our industry. I call this our soft underbelly. As an example, recent media coverage of min-ing incidents has made many individuals, communities, and politicians skeptical and perhaps less friendlyto our extractive industries. In reality, the real story on safety is very different than that described in themedia. 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 petroleumresources in society is not being taught broadly enough in our schools. There also needs to be a con-nection of the wealth generation from resource development and its contribution to our many social pro-grams. We are currently very focused on our short-term need for skilled labour; however, over the longerterm we need to focus on our K-12 grade school content. To meet this need, a number of associationshave initiated excellent programs but we as an industry need to combine our collective efforts to reallymake “education” happen. CIM has volunteered to be a catalyst for bringing our efforts together. Over thenext while, you will hear what is happening across Canada as we reach out to our teachers and students.

En septembre dernier, j’ai eu l’occasion de participer à la Conférence des ministres de l’Énergie et des Mines et au premierAsia Pacific Forum on Mines and Minerals tenu par la Mining Association of British Columbia. En plus des sessions des con-férences, les associations minières du Canada ont tenu une session conjointe afin de discuter de leurs enjeux communs. Le thèmedes 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’entendreraconter de nombreuses études de cas décrivant les succès (et les échecs) des pratiques actuelles. D’un point de vue général, jesuis encouragé par les progrès effectués dans de nombreux domaines, surtout concernant l’implication des autochtones et descommunautés. La croyance générale est que : « Les mines ne sont pas près de disparaître. Alors comment pouvons-nous améliorerla situation ? »

Toutefois, si nous prévoyons faire mieux à long terme, nous devons traiter de la question plus générale de la perception denotre industrie par le public. Je crois que c’est notre talon d’Achille. Par exemple, la couverture médiatique récente concernantdes incidents miniers a rendu plusieurs individus, communautés et politiciens sceptiques, et peut-être moins favorables, enversnos 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 ressourcesminérales et pétrolières dans notre société ne sont pas assez enseignées dans nos écoles. Il doit aussi y avoir un lien entre larichesse 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 con-centrer sur le contenu des programmes scolaires de la maternelle au CÉGEP. Pour pallier ce besoin, de nombreuses associationsont initié d’excellents programmes, mais nous, en tant qu’industrie, devons combiner nos efforts pour vraiment « éduquer » lapopulation. L’ICM s’est porté volontaire pour jouer ce rôle de catalyseur. Vous entendrez bientôt parler de ce qui se passe auCanada alors que nous tendrons la main aux enseignants et aux élèves.

Les mines ne sont pas près de disparaître,il est temps de diversifier nos approches

Jim PopowichCIM President Président de l’ICM

mot du président

Mining is here to stay—time to reach out


newsSustainability taking forefront at Queen’s

November 2007 | 7

AchievementsImpressive performance

The Mining Association of Canada awardedSuncor Energy for their efforts in sustainability. Thecompany was recognized for its stakeholder rela-tions, community media, and crisis communica-tions.

Suncor also received ‘best-in-class’ marks for theirapproach to climate change disclosure by the CarbonDisclosure Project.

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

Ball awardedFounder and partner of Three-D Geoconsultants

Dwight Ball received the 2007 Canadian ProfessionalGeoscientist Award from the Canadian Council ofProfessional Geoscientists. Ball was chosen for hisachievements and outstanding contribution to thedevelopment and practice of professional geoscience.

A new teaching and research program at Queen’s University aimsto facilitate the development of innovative approaches to help thecompetitive business realities of mining be in tune with the evolv-ing values and expectations of society.

Kinross Gold Corporation is providing funding to establish theKinross Professorship in Mining and Sustainability, through a com-mitment of $500,000 over the next five years, with additional fund-ing to come from the Faculty of Applied Science at Queen’s.

“The mining industry needs more engineering graduates with theskills to meet the challenge of responsible mining,” said Tye Burt,president and CEO, Kinross. “That includes the ability to under-stand the expectations and aspirations of communities where wework and to find win-win approaches that support business objec-tives while also making a positive net contribution to the long-termeconomic and social well-being of the community.”

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

news

A new technology’s in town, one thatseparates the good from the bad, and indoing so has saved the life of at least onemining company. An optical ore sortingsystem, aptly named ‘Automated OreSorting,’ has been set up by Terra Visionat the Sherritt Dynatec MineralsDivision mine site (historically knownas Canada Talc). Talc was discovered ona farm in Madoc, Ontario, in the 1880s.It first came into production in 1896,and, having gone through a few namesand owners, has since mined over800,000 tons of high-grade talc.Without the help of this revolutionarysorter, the well-known mine may havefaced closure.

The need for the optical ore sortercame about when Sherritt DynatecMinerals’ time came to undergo a littleconstruction. For a variety of reasons,their underground workings were shutdown and their headframe needed to berebuilt. Unfortunately, delivery of thenew headframe took quite a bit longerthan they had expected, and the minefound itself unable to provide for themill: ore-less and empty-handed.

Luckily, Terra Vision to the rescue.Under sub-contract, Terra Vision begansorting the waste. Old material, dis-carded as waste and deemed useless, isnow being sorted over again. Ore isrecovered and then sent to the mill, thussaving the mine from shutting down.Before the sorter came along, everything

was done by hand, andthe tonnages were obvi-

ously much too low, which is why TerraVision was called in.

The system, which is containerized(for shipping purposes), was ordered onMay 7. It was delivered to Quebec Cityby CommoDaS GmbH on May 15, con-tainerized by Terra Vision, and deliveredto Madoc on May 22. Sorting began aweek later. The technology is fairly sim-ple. “Automated ore sorting is a comple-mentary technology that applies a vari-

New sorting system breathes life into talc mine

ety of sensors, including cameras and/orconductivity, magnetic susceptibility,and dual energy X-ray transmission sen-sors, to control the mechanical separa-tion of ore from gangue on an individualrock-by-rock basis. The system sepa-rates the rocks by diverting individualrocks with a bank of high-pressure airjets. The air jets are controlled by a highspeed image/data processing unit cou-pled to sensors that are scanning theentire width of the chute.”

This means that the machine looks ateach rock individually with a cameraand makes a decision as to whether ornot it meets the ore criteria. While some

systems sort based on texture, the sys-tem set up for Sherritt Dynatec sortsbased on colour. These systems can beconfigured for applications rangingfrom precious gem sorting (+1 mm) upto coarsely crushed ore (-12 inch) withthroughputs up to 350 tons an hour.

Terra Vision president MatthewKowalczyk said that the setup processand optimization for the machine isfairly simple. Terra Vision has a con-tract to both supply and supervise thesorter. Training for the operators isminimal; once the system is set up fora permanent installation, operatorintervention is limited to starting and


by Carolyn Hersey

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

Why send waste to the mill?Sort ore from waste on a rock by rock basis at up to 300 t/h.

Ore sorting solutions from initial feasibility and testing to commissioning.Tel: 418-948-3580 � Fax: 418-948-3580 � email: [email protected]

www.oresorters.com

TerraVisionOre sorting solutions

news

stopping the processing line andadjusting one or two parameters.Parameters, alarms, and warnings arepresented to the operators in a simpletouch screen interface.

This automated ore sorting tech-nology, though extremely beneficial,is actually quite a rarely heard-of con-cept in North America. Outside of thediamond industry, Sherritt Dynatec isusing the first-ever optical ore sorterfor minerals in Canada. The technol-ogy actually started in the recyclingindustry in Europe. While ore sortingcomes in many forms, ranging fromthe hand-sorting of waste dumps byindividuals to advanced statisticalmethods based on bulk sampling andchemical assays, the latter has provento be the most useful and can beapplied in various situations usingvarious methods. The automatedoptical ore sorting equipment can beapplicable to not only industrial min-eral projects, but also to base metaland precious metal projects. In thecase of mill feed pre-concentration,profits can be increased by separatingit into high- grade, low-grade, andwaste fractions. Environmental risksand costs can also be reduced bysending waste rock to the appropri-ately designed dumps.

For newer mines, ore sorting canresult in a higher cash flow, whichcould be used to pay off the capitalcost of the mill more quickly, saidKowalczyk. For older mines, sortingcan “increase the profitability of theiroperations by only hauling or hoist-ing ore that is well above the eco-nomic cutoff to the processing cen-tre.” In addition, said Kowalczyk,“not only are direct processing costsreduced, but data gathered during thesorting process, such as particle sizeand description of the composition ofthe sorter output, can be fed forward,in realtime, to mill operators so thatdownstream operations can be opti-mized.” It’s a win-win situation.

Like any process out there, thereare of course improvements to bemade. Kowalczyk said some of thescreening and washing at this installa-

tion can be improved to increase thethroughput to the machine. They arecurrently running at about 20 tons perhour, but with a few adjustments,could run up to 40 tons per hour (feedpreparation currently limits thethroughput).

Automated ore sorting has beenaround for over 15 years, and onlynow are we reaping its benefits here inNorth America. In the long run, theidea is to eventually integrate the

November 2007 | 9

“ It’s the university’s new foreign language building.”“Well, they seem to have chosen an appropriate site.”

sorter into Sherritt Dynatec’s regularore sorting process, and not just use itas a temporary solution. Ultimately,the system will ensure that they canconstantly provide high-quality talc tothe mill. For now though, dumps thatwere previously considered waste arecurrently the only source of ore for themill. This technology allows them tosort their waste piles, send them to themill, and most importantly, avoidshutdown. CIM

A D D R E S S M E TS O M I N E R A L S - M I N I N G , 2 4 0 A R C H S T R E E T, YO R K , PA 1 7 4 0 3 U S A P H O N E + 1 7 1 7 8 4 3 8 6 7 1 FA X + 1 7 1 7 8 4 5 5 1 5 4 E - M A I L M I N E R A L S . I N F O @ M E TS O. CO M

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news

November 2007 | 11

Cameco Corporation, the world’sleading uranium producer, has investi-gated the possibility of undergroundmilling of high-grade uranium ore.Brainchild of Chuck Edwards, director,engineering and projects at Cameco, this

innovative con-cept has beene l a b o r a t e d

upon and studied. In January 2007,Edwards presented the design as well astechnical details at the 39th AnnualCanadian Mineral Processors Operators’Conference in Ottawa.

The idea was conceived in 2000when milling possibilities for CigarLake were being brainstormed.Although it was too late in the projectto implement at the Cigar Lake Mine,

Underground uranium millingA peek into the future

interest in the proposal was keen. “I amquite confident that the next high-grade underground ore body will usethis process,” Edwards said. Given thelevel of uranium exploration presentlyunderway, there is optimism that sucha discovery will be made.

This exploration is due to forecastedincreases in future demand for ura-nium and its current high cost.Globally, there is a trend towards thenuclear option because it is well posi-tioned as an environmentally friendlyenergy source. Economically develop-ing nations such as China and India arebuilding nuclear reactors and othercountries are making plans for futureconstruction. Closer to home, theUnited States will likely develop new

dby Debbie Sarik

macfacts

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

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

power plants within the next few years.“A nuclear power plant produces virtu-ally no CO2,” said Edwards and therenewed interest in nuclear that thishas sparked “is referred to as thenuclear renaissance.”

Cameco predicts that new uraniumdeposits will need to be brought intoproduction to satisfy the increase indemand. If the right type of ore bodywere to be found, Cameco would con-template using underground milling.“You want an underground high-grademine,” Edwards stated. “To make sensegoing underground the equipment hasto stay fairly small. You want a high-grade mine because the higher thegrade, the smaller the equipment forthe same production.”

news

To obtain a high-level understand-ing of the proposed undergroundmilling method, it can be compared toconventional surface operation. Themilling process currently employed atCameco’s northern Saskatchewan millsincludes six basic steps: grinding,leaching, solid/liquid separation, impu-rity removal, precipitation and drying,and tailings deposition. With under-ground milling, these steps would beperformed below the surface, with theexception of impurity removal and pre-cipitation and drying. These wouldremain above ground due to the size ofrequired equipment.

As the conceptual process has beenironed out, pre-feasibility studies haveidentified important benefits under-ground milling could have versus thestandard surface operation. In fact,both the environmental and the costimpact of the proposed method appearfavourable.

Environmentally, the treatment ofthe solid and liquid waste from theunderground milling process wouldoffer significant benefits. Edwardsexplained that overall “there is amuch, much smaller environmentalimpact.” There would be three mainareas of improvement. Firstly, visualimpact is lessened because of reducedsurface operations. Secondly, the tail-ings would be stored underground,well isolated from water. Currently,tailings are treated and stored on sur-face. Edwards described the proposedunderground disposition as “anextremely safe, environmentallybenign method of storing the tail-ings,” because the undergroundmethod would “isolate them morefrom the water than the ore was tobegin with.” Lastly, the liquid wastewould be minimized because theequipment used would be relatively

small. Effluent could be furtherreduced if combined with Cameco’smembrane treatment of water. In fact,according to Edwards “we can poten-tially get to a very, very small amountof effluent discharged, and possibly noeffluent discharged, in which case youhave zero impact.”

As an added advantage, the financialaspect of such a process has an up side.“You have major environmental bene-fits and they cost you less than noth-ing,” emphasized Edwards. This isbecause cost analysis performed atCameco revealed that undergroundmilling could offer sizeable capital and

operational cost sav-ings. On the capitalside, the reduction incost would result fromlower constructionexpenditures. On theoperational side, withthe milling taking place

right at the site, ore transportationcosts would be reduced. Overall, posi-tive attributes of the process could beadvantageous for Cameco and furthertheir goal of producing clean energywith the least possible environmentalimpact.

There are no known obstacles toimplementing the underground millingprocess in a future mine. The technol-ogy and equipment required arealready available. In addition, the pro-posed excavations for such an opera-tion would be reasonably small andtherefore would not represent anyadditional concerns with regard to con-struction and safety.

Should the right ore discovery bemade that would suit undergroundmilling, Edwards and his team areready to swing into action. At such atime, feasibility studies would beconducted and permitting wouldneed to be done. Basically, saidEdwards, “the process is 100 per centready to go.” Once a site is identified,the exact process would be tailoredto the specific characteristics of thediscovery. Until then, Edwards andhis team are anxiously awaitingexploration developments. CIM

Movin’ on up

With some 20 years’ experience inpublic service, international finance,and capital markets, William Majcherwas appointed to Evolving Gold’sboard of directors.

Clifton Farrell is the new vice presi-dent and COO of Blue Sky Uranium.He brings 25 years’ experience in natu-ral resources to the position.

The latest additions to NLTechnologies' team are Heidi Levittand Roger Farmer. Formerly vicepresident of sales and marketing atLevitt-Safety Ltd, Levitt is the com-pany's new president. Farmer bringsextensive experience with high-techproducts to the position of vice presi-dent, engineering.

Douglas Whitehead has joined InmetMining's board of directors. He is thepresident and CEO of FinningInternational.


New position for former CIM president

Yves Harvey, executive director ofCOREM, is the new president of theQuébec Mining Association’s board.Harvey served as the president of CIMin 1998-1999 and was president/exec-utive director of SOQUEM from 1991to 2005. He has also recently joinedStornoway’s board of directors.

Environmentally, the treatment ofthe solid and liquid waste from the under-

ground milling process would offersignificant benefits

news

Hauling ore and waste rock typicallyaccounts for about 60 per cent of thecost of obtaining ore from an open-pitmine—so just shaving a few percentagepoints off that cost can make a differ-ence to the mine’s bottom line. In manycases, relatively low-cost changes inlayout, structure, and operational pro-cedures for haul roads can provide sig-nificant savings, which continuethrough the life of the mine. This is theold adage, “spend a penny, save apound,” brought to life.

Another adage, “there is no freelunch,” also applies. Wise haul roadmanagement involves balancing sev-eral factors against each other. Formany mines,productivity canbe improved byunderstandingthese balances and taking action basedon that understanding. Many mineroads “just happen” without adequateplanning and design, and the resultsare found in prematurely aged trucks,higher tire and fuel costs, and lowerproductivity.

LayoutThe question of balance is a big one

in the layout of the road network. Thisincludes the gradient and the width ofthe ramp used to haul ore and waste tothe surface. A steep climb results inshorter haul distance and takes lessspace, so 10 to 12 per cent gradients

are common.However, atruck’s effi-ciency declines

significantly at steeper grades. Goodlayout considers engine power and theload weight in deciding on the grade ofthe road out of the mine.

The width of the road is dictated bythe truck size and the traffic density.For example in Quebec, this width is1.5 times the width of the biggesttruck in the fleet for one traffic lane,and three times for two traffic lanes.

Haul roads: spend a penny, save a pound

Where traffic density allows, i.e. tem-porary roads, a one-lane road could beconsidered.

At the surface, one factor many min-ing companies miss has to do withsmall rises along the route. While atruck driver will downshift before alarge hill, she or he may try to take asmall rise without shifting, which canput unacceptable strain on the motor.Downshifting has its own penalties inincreased turnaround time, so goodroad layout minimizes small rises aswell as the larger ones.

Another common design problem inhaul roads has to do with water man-agement. Failing to study drainage pat-terns ahead of time, and install culvertsand other water-management meas-ures, can mean washed-out road sur-faces. This reduces vehicle efficiencyand increases maintenance costs, so“pennies” invested in water manage-ment measures pay off in “pounds”over the life of the mine.

StructureThe structure of the roadbed on the

in-pit ramp is generally simple—just alayer of gravel to boost traction, laid onthe bare rock. Good engineering canhelp determine the optimal thicknessand gravel type. At the surface, if theroute lies on soil rather than rock,there is more need to pay attention tothe road bed so it does not deformunder the weight of the trucks.

An area where some mine roaddesigners miss the mark—with possi-bly dangerous results—has to do withcurves in the road. Many curves aredesigned, with posted speed limits to

match, to reflect the need to preventvehicles from skidding off the road dueto inadequate side friction. However,these measures are sometimes notenough to deal with the danger ofrollovers. As a result, a curve that issafe at a given speed regarding frictionmay still cause a truck, loaded highwith ore, to tip.

Tight curves also result in outwardcentrifugal forces, compensated by sidefriction between tires and road surface.Along with good surfacing materials, agood design should include banking(super-elevation) of the road throughthe curve.

OperationsOne of the biggest sources of

improvement for haul roads lies intheir operation.

A too rough or soft road surfaceincreases rolling resistance, slowing

vehicles, and causing unnecessarystress. This means that procedures mustbe established so grading is done atappropriate intervals. In many mines,grading is done on a schedule—“If it’sTuesday, we must be grading road four”—rather than on an as-needed basis.Mines in South Africa are among theworld pioneers in regular checks of eachroad’s surface, with grading carried outonly when needed to keep an acceptablesurface on each part of the road.

Better training for shovel operatorscan help make sure that each truck isloaded as full as possible, but notbeyond a limit imposed by the enginecapacity, the roadbed surface, safety,and other factors. Training can alsohelp make sure that grader operatorsdeliver surfaces that are rough enoughfor good tire grip and smooth enoughfor vehicle efficiency.

About the Authors Mohamed Bouna Aly is amember of the mining practice of GolderAssociates Ltd., based in Val-d’Or, Quebec. RobertDouglas specializes in haul road engineering and isa member of the transportation practice of GolderAssociates Ltd., in Mississauga, Ontario.

CIM

by Mohamed Bouna Aly and Robert Douglas

November 2007 | 13

Wise haul road management involves

balancing several factorsagainst each other

news

September 8 was a day to rememberfor the coaches and members of ElkValley Coal’s Fording River F Shift minerescue team. After two days and 25 hoursof intense competition against 18 othermine rescue squads, F Shift became thefirst local team to win the North WestRegional Mine Rescue Competition(NWRMRC) held in Fernie.

“I can’t emphasize enough howmuch hard work, time, and energy theteam members put in,” said team cap-tain Rory Marshall. “To be the best inB.C. was just too good, but to take theWestern Regionals—that’s the best inthe West! It’s just indescribable.”

The western region consists ofManitoba, Saskatchewan, Alberta,British Columbia, NorthwestTerritories, Nunavut, Yukon, and thenorthwestern United States. Held everytwo years, the biennial event was firsthosted by the NWRMRC and the City ofFernie in 1993. Based on the success ofthat inaugural competition, the City ofFernie and the NWRMRC have jointlyhosted the event since then.

Eligibility to compete is restricted tothe underground and surface mine res-cue teams that have won their respec-tive provincial or state competitionsfrom the previous and/or current year.The competition is designed to recog-nize, showcase, and celebrate the skills,dedication, and hard work of thoseinvolved in emergency response andmine rescue.

F Shift is a prime example of thecommitment that goes into a winningteam. The team’s two coaches, husbandand wife Bruce and Shelley Dingreville,have been involved in mine rescue for

Elk Valley Coal wins international mine rescue competition

almost 20 years. Their team won thegrueling provincial mine rescue compe-tition in Williams Lake this past Junebefore capturing first place in theNWRMRC. Team members include cap-tain Rory Marshall, vice captain JeffScott, D’Arcy Lewis, Dennis Cooper,Doug McLean, Dean Borgen, NickHucik, and coordinator Brian Jones.

“These guys put in an amazing effort,and I don’t mean just at the competi-tion,” coach Bruce Dingreville com-mented. “Being part of this team meansa huge commitment from them at homeas well as at work. Up until the compe-tition on Saturday, they were still cram-ming at home with tests Shelley and Ihad given them.”

The knowledge and skills demandedfrom the men and women on mine rescueteams are rooted in a proud, storied his-tory that extends back almost 100 years.Mine rescue techniques, training, andequipment in the early 1900s were lim-ited and relatively ineffective. Then, in1909, after a series of mine accidents inthe province, the British Columbia MinesAct was rewritten. The new law required,among other things, that every coal minebe equipped with a self-contained oxygenbreathing apparatus. It also mandatedthat central supply stations for the train-ing of rescue corps be established andmaintained by the government. Thismarked the beginning of formalized minerescue in British Columbia.

Elk Valley’s first mine rescue stationwas established in 1910 at Hosmerwhere a team was soon trained in the useof the new mine rescue breathing appa-ratus. It wasn’t long before the Hosmerteam was called to serve. In early

December 1910, an explosion at theBellevue Mine in Alberta killed 30 of 42miners and trapped many more. With nomine rescue team of its own, theBellevue Mine called upon the assistanceof the Hosmer crew, who respondedimmediately. Lives were saved that dayand ever since by the use of the moreefficient breathing equipment.

The competi-tions renew andreinforce thebonds establishedby the first minerescue teams.More importantly,

the areas represented are part of the dis-aster response plan designed to providemutual assistance when and where it isrequired. As in 1910, the example set bythe Hosmer teams has continued—bor-ders are ignored when the need is there.

For captain Rory Marshall, the impor-tance of mine rescue and the dedicationof his team makes the competition espe-cially meaningful. “We live what wepreach,” he summarized. “We promotesafety and live safety based on hard work,determination, and never letting up.You’re working together with these guysand they’re the best; so if it ever does hap-pen that I get into a spot, I know the bestis coming to get me,” he added. “I am soproud of the team. It comes right down tohelping people in need and saving lives—and for that we do it from the heart.”

The success of F Shift has been a longtime coming for the team and itscoaches. After years of commitment andhard work, the Dingrevilles’ havedecided that it’s time to step back andretire from mine rescue.

“We’ve made so many friends overthe years,” said Shelley. “Winning firstplace was definitely special for us, butit’s the fellowship and camaraderie ofmine rescue that we’ll miss the most.”

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


“We live what we preach… We promote safety and live safety based on hard work, determination, and never letting up”

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

news

November 2007 | 15

gold, lead, manganese, mercury, nickel,selenium, silver, tin, uranium, andzinc) that are mined or emitted as by-products of mining. Specific topics areas follows:• Aquatic ecosystems and how min-

ing activities discharge metals andacid rock drainage (ARD) into theseecosystems.

• Principles of metal toxicity, expo-sure pathways, and factors thataffect metal toxicity.

• Acute and chronic effects of eachcontaminant on aquatic organismsand human health.

The Norman B. Keevil Institute ofMining Engineering at the University ofBritish Columbia (UBC) has recentlyexpanded its environmental curriculumto include a course entitled “Impacts ofMetals on Aquatic Ecosystems andHuman Health.” Fran Solomon, anenvironmental biologist with over 25years of experience in environmentaland natural resource agencies and uni-versity laboratories, developed andtaught the course to mining engineeringgraduate students and fourth-yearundergraduates during the 2007 springterm and is teaching the course againthis term. She taught a three-day versionof the course to mining industry profes-sionals and mining engineering gradu-ate students through the UBC MiningStudies Summer Institute in June. Thisshort course is offered again at UBCRobson Square this November.

The purpose of the course is toencourage environmentally sensitivemining practice by educating currentand future mining engineers and envi-ronmental professionals about theimpacts of metals on fish, on otheraquatic species, and on human health.A related objective is to promote col-laboration between engineers and sci-entists with respect to prospecting,design, development, operation, andclosure of mines to reduce discharge ofmetals to the aquatic environment. TheKeevil Mining Institute regards this

issue as an important partof the curriculum. The

new course complements existingenvironmental courses that include“Mining and Society” and “Mining andthe Environment.”

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

New environmental course at UBC for mining engineering

AchievementsLeading corporate social responsibility

Barrick Gold has been named to the Dow Jones Sustainability Index–NorthAmerica. 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 andEuropean sustainability indices) in the support services sector. This is the fourthtime AMEC has been named to the index.

About the Author Fran Solomon is an adjunctprofessor at UBC

• Toxicity testing methods.• Source control and remediation of

metal contamination and ARD at amine site.

• Case studies.• Mining, fish, and First Nations

issues.The term-length course also

includes a field trip to the formerBritannia Beach Mine site and a “conference” at the University ofBritish Columbia in which graduatestudents will present papers that they have written on topics relevantto the course. CIM

by Fran Solomon

news


The Management and EconomicsSociety has undertaken a survey ofindustry practice in the evaluation ofmineral projects. The survey question-naire was distributed by e-mail togroups and organizations around theworld. The responses, although a smallnumber, show a consistency that sug-gests that the survey has captured theviews of the industry.

The 2005 survey is the third under-taken by MES. Surveys were also con-ducted in 1996 and 1997-99. Theresults shown in Tables 1 and 2 presentdata from the all three MES surveys. Thesurveys suggest that there are severalconsistent patterns between surveys:• Discount rates for gold projects are

two to three per cent lower than forbase metal projects.

• Discount rates are increased athigher levels of perceived risk.

• The increment in discount rates isincreasing larger from scoping studyto preliminary feasibility study to fea-sibility study to operating mines.The survey results should be thought

of as indicating a range of values, not assingle average values. The ranges indi-cated in the tables are set to a spread oftwo per cent. The values shown for theranges are the individual average values+/- 25 per cent of their standard devia-tion for gold and +/- 37 per cent of theirstandard deviation for base metals. The

reader is cau-tioned that the

results are a snapshot of industry prac-tice at a point in time as represented bya small sampling of the industry’s prac-titioners. These results should beviewed as indicative values.

The figure plots the average dis-count rate values for gold and basemetals from the 2005 survey. Thesevalues are expressed in real terms. Theincrements or steps between the dis-count rates at the different levels of

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

studies are as significant as theabsolute values of the discount rates

plotted. Note the lower discount ratesapplied to gold projects. CIM

@Section:N ws

T l 2005 urvey of va p he m ndus

ubt CIM ge EB L D

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Gold & Base Metal Discount Rates (Real)

Base

Metals 2005

Gold 2005

4%

6%

8%

10%

12%

14%

16%

18%

Scoping Pre Feasibility Feasibility Production

Level of Development

Dis

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un

tR

ate

Table 1 – Gold project discount rates—average values (three surveys)

Level of ProjectDevelopment 1996 1997-9 2005 All Step Range*

Scoping 12.8% 12.1% 12.3% 12.4% 11.5%-13.5%

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%

Respondents 11 13 8 32 32 32

Table 2 – Base metal projects discount rates—average values (three surveys)

Level of ProjectDevelopment 1996 1997-9 2005 All Step Range*

Scoping 15.6% 14.1% 12.6% 14.0% 13%-15%

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%

Respondents 12 12 10 34 34 34

by Lawrence Devon Smith

news

November 2007 | 17

The participation of women in theminerals industry is on the rise, but atpresent, women are still greatly out-numbered throughout the industry.However, as we move forward, moreand more success stories emerge ofgreat individuals carving out successfulcareers. Tracy Tremblay is one suchexample.

At 29 years old and already an areamanager for mining contractor ManrocDevelopments Inc. at Copper Randmine in Chibougamou, Quebec, TracyTremblay has reason to be proud. Bornand raised in Sudbury, Ontario, miningwas a constant subject as she grew up.Tremblay didn’t dream of being a min-ing engineer as a child, but havingbeen surrounded by it her whole life,she just “fell into it.”

She studied mining engineering atLaurentian University for four yearsand landed her first job in Denver in2002. There she worked as a miningengineer in technical services withMaptek KRJA Systems. She workedher way up and in 2005, moved to hersecond job and became mine plannerfor Musselwhite Mine. From there sheprogressed to her present profession:area manager for Manroc at CopperRand Mine in Chibougamou.Working for Manroc DevelopmentsInc., she started last year as an engi-neer and is now managing the divi-sion. “My responsibility is to ensurethat everything is in place in order toget the job done right,” she said

proudly. To boot, themethod her team is

using, known as Alimak mining, isbeing used for the first time here inQuebec.

When she first started out, it was achallenge. She admits that there stillremains some very old-school men-tality about women in the miningindustry. There’s a lot of initial skep-ticism about women being able to dothe job well, but she said that it does-n’t take long to prove otherwise. How

Getting the job done right

does she deal withit? “You can’tchange how peo-ple think, but youalso can’t leteverything get toyou.”

In the time she’sbeen working, shehas seen someresistance frommen under hermanagement, butnot letting it affecther, and listening,is the key to hersuccess. “Listeninggains respect,” shesaid. If someonemay have a betteridea or solution toa problem, thenopen ears and con-sideration are herway of handling it.This area managerprefers to workmore collaboratelyas a team over thetraditional ‘I’m theboss you’re theworker’ method.Her job is morethan technical;m a n a g e m e n tmeans workingwith people, andthe goal is to keepeveryone happywhile still gettingthe job done. Shealso notes thatworking for smallercompanies is agreat privilege.With larger corpo-rations, peopletend to get lost inthe crowd andbecome ‘one of thenumbers.’ “In

Knig

htProviding quality environmental and engineeringservices to mining projects worldwide

• Baseline EnvironmentalStudies

• Environmental Assessment

• Waste/Water Management

• Tailings Disposal

• Heap Leach Pads

• Cold Regions Engineering

• Hydrology/Hydrogeology

• Open Pit Stability

• Mine Reclamation

www.knightpiesold.com

Knight PiésoldC O N S U L T I N G

KnightPiesold.qxd 11/2/07 9:11 AM Page 1

“In smallercompanies,you reallyget thechance to shine.”— T. Tremblay

by Carolyn Hersey

news

smaller companies, you really get thechance to shine.”

Of course, Tremblay does have hob-bies outside the world of mining. Shereally enjoys being outdoors and, at therisk of sounding stereotypical, loves toshop. Not yet settled into the family-with-children scene, she devotes mostof her time to her career, working longhours. When the time rolls around tostart a family, though, she says her pri-orities will definitely change. “Youmake work what you want it to be.”There are always options and ways tomake more time for the people whotruly matter—the ones you love.

Tremblay feels that she has foundnot just a job, but a life career, addingthat she wants to stay in mining for-ever. Business is booming andalthough we’re not quite there yet,there are more and more women get-ting into the industry every day. She’squick to point out that there’s not

more sexism in mining than in otherfields, there are just a lot in more men.Women need to open their minds a lit-tle more when it comes to careeropportunities, expand their vocationalhorizons. Misconceptions about whatmining really is must be addressed.There’s more to mining than ‘living inthe bush and digging a hole;’ there areprofessional opportunities abound.Really, there’s no reason why womenshould still be a minority in the min-

ing industry, especially in this day andage. Tracy Tremblay, along with manyothers, is a shining example of howtraditional barriers can be broken.

So, what does the future hold forthis humble area manager fromSudbury? Well, she’d love to stay in themanagement field but would like tomaybe work with larger teams and, ofcourse, she plans to continue to seeknew challenges. Wherever the roadtakes her, I’m sure she’ll succeed. CIM


The Ledcor Group of CompaniesCivil - Mining - Infrastructure

www.ledcor.com

T H I N K S A F E T Y , W O R K S A F E L Y !

DRIVEN BY QUALITY DELIVERED BY LEDCOR

MINE SERVICES:

OILSANDS SERVICES:

CIVIL/INFRASTRUCTURE SERVICES:

GEOCONSTRUCTION SERVICES:

www.ledcor.com/careers or call 1-866-533-2671

ALBERTA: (780) 462-4211 BRITISH COLUMBIA: (604) 681-7500 NEVADA: (775) 829-8887

Copper Rand is nestled in some beautiful countryside

HVC team to therescue

The Highland Valley Copper MineRescue Team demonstrated great prowesson September 18 when they were called tohelp save the life of an excavator operatorinvolved in an accident at Graymont’sPavilion quarry operations near Lillooet,British Columbia.

The operator was buried, along with hismachine, at the Pavilion operations wherehe’d been working in an open pit when thehigh wall above him gave way.

The B.C. Mines Inspector called theHighland Valley Copper Mine RescueTeam, which was dispatched to Graymontat 3 p.m. At 11 p.m. that night, workingtogether, the Graymont and HighlandValley rescue teams recovered the operator,who survived with minor injuries.

“All Teck Cominco employees join mein saluting the brave and diligent efforts ofGerry Wong, Dirk Werring, PeterLapointe, John Brennan, Steve Hippisley,Neil Rideout, and Wes Martin,” said PaterKukielski, executive vice president andCOO of Teck Cominco, to Marketwire.

“This dramatic rescue underlines theeffectiveness of our company’s safetypreparations and the commitment acrossour industry to provide mutual support tooperations and surrounding communi-ties,” added Mike Filion, vice president,environment, health and safety, TeckCominco. “We are proud that the HighlandValley Mine Rescue Team was able to suc-cessfully apply their training and expertisewhen called upon to assist.” CIM

Giving backTeaming up for a good cause

Alcan teamed up with the MontrealCanadiens to raise money for theirChildren’s Foundation. In total,$115,000 was amassed through a silentand live auction, as well as a perform-ance by the Arvida Research andDevelopment Choir.

November 2007 | 19

TECHNICAL SERVICES DIVISION

The Technical Services, located in Cadillac, Abitibi-Témiscamingue, are a multidisciplinaryteam whose main functions are the evaluation of mining projects, the redaction of feasibilitystudies and the technical assistance to mining operations and projects in development.

Constituted of numerous experienced professionals in different domains, the Technical Services are working on national and international projects.

Presently, the Technical Services are pursuing the growth strategy of the company and are evaluating 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. Inorder to respond to the increasing demand, the Technical Services are presently in recruitment for positions of:

Senior Mining EngineerThe 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 responsibleof 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 EngineerWithin 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 EngineerWithin 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 willalso 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 DIVISIONThe Exploration Division, located in Val-d’Or, Abitibi-Témiscamingue, is responsible for the exploration of potential mines’ sites across Canada.

Project GeologistUnder 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 Limited, a growing international company, is focus on precious metal production with Canadian exploitations and advanced projects and development opportunities in Canada, Mexico, Finland and the United-States. Agnico-Eagle Mines Ltd. is presently looking for dynamic and motivated candidates to join its Technical Services Division and Exploration Division

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

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

Agnico-Eagle Mines - Regional DivisionTo: Human Resources Service

Ref: Foreseen position20, ROUTE 395CADILLAC, (QC)

J0Y 1C0FAX: (819)-759-3663

E-MAIL: [email protected] Mines ltd. subscribe to the employment equity program.

JOB OFFER

AgnicoEagle.qxd 10/16/07 3:35 PM Page 1


he statement that Saskatchewan is a globalmining powerhouse does not come as a sur-prise to people watching the markets these

days. While very few jurisdictions can claim to be theworld’s leading producer in one commodity,Saskatchewan is the world’s leading producer in two –potash and uranium, accounting for approximately one-third of the total world production for both commodities.With the growing global demand for both potash anduranium, safe and responsible mining will remain a foun-dation for Saskatchewan’s growth and prosperity formany years to come.

The Saskatchewan mining industry has astrong presence across the fabric of theprovince, and with the growth of the

mining industry, there is mounting confidence in theprovince’s economic prospects. Our industry has a contin-uum of projects in the pipeline through the grassrootsexploration, advanced exploration, development, and pro-duction stages, some of which are featured in this CIM issue.The mining and agricultural sectors are now virtually tied forsecond in relation to contributions to the province’s grossdomestic product (GDP) after oil and gas. Mining con-

tributes over $2 billion annually inwages, goods, and services and sup-ports over 22,000 jobs in over 50communities across the province. Itis also a creator of wealth throughemployment, business, and invest-ment opportunities for manySaskatchewan residents.

With the head offices of industryleaders such as PotashCorp, Cameco,AREVA Resources Canada, and agrowing stable of mineral exploration,mineral service sector companies, andresearch facilities, Saskatchewan isbecoming recognized as a miningcentre of excellence.

Safety and the environmentThe safety of people and protection

of the environment are foundations of our industry. Withrespect to safety, our industry’s success in this area is reflectedby consistently having significantly lower accident rate num-bers than the provincial average. As examples of theSaskatchewan mining industry’s commitment to excellence insafety, the Mosaic Potash Esterhazy K1 Operation won thenational John T. Ryan Trophy in the Select Mine Category thisyear, presented for the lowest injury frequency rating during2006. Previous winners of the John T. Ryan Trophies haveincluded AREVA’s Cluff Lake Mine and Cameco’s McArthur River

Mine. At the 2007 Western Regional Mine Rescue EmergencyResponse Competition in Fernie BC, Saskatchewan mines againdisplayed their commitment to safety training and expertise asMosaic Colonsay won the overall underground competition andMosaic Belle Plaine won the fire fighting event. More recently,Mosaic Potash Colonsay won the competition at the ProvincialIndustrial Fire and Rescue Competition in Regina, SK. While theawards signify excellence among our industry peers, the bestreward is that at the end of the day everyone goes home safelyto their families.

The mining industry in Saskatchewan is also committed tobeing environmentally responsible to ensure protection of theenvironment for now and for future generations.Decommissioning and reclamation of mines is a standardpractice, with industry providing financial bonds to govern-ment to cover these costs. As a testament to the long-termcommitment to the environment, the mining community inSaskatchewan worked with government to develop a perpet-ual care fund that will finance long-term monitoring of minesites that have returned to the stewardship of the provincialgovernment after decommissioning and reclamation of thesesites by industry has been completed. This fund will be estab-lished by mine operators and administered by the province. Amajor milestone was the passing of the provincial govern-ment’s Reclaimed Industrial Sites Act in May 2006. The Act isexpected to come into force in 2007 and form the basis ofpermanent institutional control over decommissioned minesites on Crown land.

ExplorationAs the feedstock for the next generation of mines, explo-ration in Saskatchewan has been galvanized by increasingcommodity prices and the province’s excellent geologicalpotential for additional discoveries. Fueled by uranium priceincreases that shot from US$7/lb in 2001 to overUS$130/lb early this summer, before settling down tounder US$100/lb, interest in Saskatchewan’s highlyprospective Athabasca Basin reached an all-time high interms of exploration activity. For the second year in a row,Saskatchewan was the destination of choice for attractingventure capital for greenfield exploration. Saskatchewannow attracts 17 per cent of all Canadian mineral explo-ration investment compared to historical levels of 3 percent. In 2007, it is forecast that over $270 million will bespent on exploration of Saskatchewan’s mineral resourcesincluding uranium, diamonds, gold, rare earth elements,copper, zinc, nickel, potash, and other industrial minerals.This is a tenfold increase from five years ago.While uraniumand diamond expenditures of $130 million and $90.5 mil-lion respectively will continue to capture most of theattention in 2007, gold and base metal exploration is onthe upswing, with combined exploration expenditures ofover $35 million. While this is good news, the industry and

Saskatchewan’s mineral industry Catalyst for the renaissance of the province’s economy

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

T

governments cannot afford to be complacentwith Saskatchewan’s leading status in attract-ing mineral investment. Other global competi-tors are hot on our heels, and already Australiaand Kazakhstan have larger known uraniumreserves than Saskatchewan.

ProductionIn 2006, the value of mineral sales inSaskatchewan was $3.2 billion with over 25mines producing a diversity of minerals includingpotash, uranium, coal, gold, salt, clay, silica sand,sodium sulphate, and, until recently, copper andzinc. Most recently, kaolin production has com-menced, and we are very hopeful that diamondswill soon be added to the portfolio ofSaskatchewan mineral production. In 2007, the value ofSaskatchewan mineral sales is forecast to be a record $4 bil-lion, largely as a result of very strong potash sales.

Saskatchewan’s abundant potash reserves ensure that theprovince will continue to be a dominant producer of potashwell into the next century. With a 12 to 16 per cent increasein potash consumption anticipated in 2007 and with a further3 per cent annual growth in demand through 2010, the worldneeds more potash. The three Saskatchewan potash produc-ers, Potash Corporation of Saskatchewan, Mosaic Potash, andAgrium, have announced investments totaling over US$2 bil-lion to expand production capacity at their respectiveSaskatchewan operations. Similarly, the demand forSaskatchewan uranium to help provide clean, non-greenhousegas emitting energy is being fueled by the number of new andproposed nuclear power stations being built around theworld. With 10 operating potash mines and the majority ofthe world’s excess capacity, and three producing uraniummines with others in the development stage, Saskatchewan isuniquely situated to meet future demands for both potashand uranium.

Our roleA large part of the Saskatchewan Mining Association’s workrelates to interaction with governments. In order to ensurethat Saskatchewan’s ability to fully capitalize on its mineralpotential is met, communication with government on issuesand opportunities is critical. We’ve had success on suchfronts as taxation reform and the delivery of training pro-grams. Given the anticipated expansion in our industry wefeel it is especially important to work with governments andthe university and technical institutes to develop strategiesto ensure that we successfully link training to employmentopportunities that are being created by the mining sector.Other important issues we will continue to work on collabo-ratively with government include improving the efficiencyand timeliness of the existing regulatory permitting system;clarity surrounding government and industry obligationsregarding the Duty to Consult aboriginal peoples; and ensur-ing a competitive investment environment. With a govern-ment that is responsive to creating a supportive environment

for growth of the sector, Saskatchewan will continue to pros-per 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 thecurrent market outlook, the mineral industry in Saskatchewanhas the potential to be the catalyst for the renaissance ofSaskatchewan’s economy. F

November 2007 | 23

by H. Eve Robinson


askatchewan has attracted a lot of attentionin minerals exploration and mine development

in recent years. Overall, minerals exploration hasincreased more than tenfold in the last five years

The rich geology of the province has some ofthe world’s largest diamond-bearing kimber-lites that companies such as Shore GoldIncorporated have been exploring for poten-tially economic diamonds, while gold mines

owned by Claude Resources Inc. have pro-duced over 750,000 ounces of gold.

Development of the diamond industry inSaskatchewan and expansion projects in gold mines are twoleading examples of Saskatchewan’s current growth in the min-erals industry.

The province is divided into two different geological regions. Innorthern Saskatchewan, the Precambrian Shield is exposed andtogether with the Athabasca Basin, this zone is characterized byancient sedimentary rocks, crystalline basement rocks, and

sandstone. Thisregion of theprovince holdsdeposits of eco-n o m i c a l l yimportant min-erals such asgold and ura-nium, while alsoproviding theright geologicalenvironment forthe formation

of diamond-bearing kimberlites. In southern Saskatchewan, thePhanerozoic Basin is comprised of younger sedimentary rocksthat cover the crystalline basement rocks. Formed by depositsfrom shallow seas and lakes, this area hosts reserves of clay,potash, oil, natural gas, and coal.

DiamondsShore Gold Inc. has been conducting diamond exploration inSaskatchewan since 1996.The province has the largest diamon-diferous kimberlite field in the world, which was discovered in1988. The company acquired key claims in 1995. Shore Gold’sStar Diamond Project now totals 363 claims that cover139,500 hectares of land, located 60 kilometres east of PrinceAlbert, Saskatchewan.

The Star kimberlite is approximately 88 metres thick and cov-ers an area over 4 km2.The kimberlite is covered by as much as90 metres of overburden, which consists of sand and mudstone.

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

try, noted, “We have had technical challenges we had to over-come because we have to drill through the overburden. Wedeveloped specialized methods in order to successfully extractsamples from these kimberlites.”

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

“The Star Diamond Project is very exciting, due to a number offactors,” explained Du Plessis. “First, the kimberlite providesover 200 million tonnes of potentially economic diamonds thatcould produce diamonds in Saskatchewan for many years.Second, the diamonds we have [in the Star kimberlite] are of avery good quality. Our model diamond price of $135 per caratis more than double the world average for kimberlite, which is$63 per carat. Third, having a coarse diamond distributionmeans 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. Growingeconomies in countries such as China and India havewidened the gap between supply and demand for these pre-cious gems. Though the biggest diamond markets are cur-rently the United States, Japan, and countries in Europe, eco-nomic growth in Asia will continue to drive the increasingdemand for diamonds.

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

Shore Gold is currently undergoing an advanced evaluationprogram that the company anticipates will be completed bythe end of 2007. In a shaft running as deep as 250 metres, over3,000 metres of lateral development at 235 metres in depthwill be used to extract 10,000 to 15,000 tonnes of kimberlite.This sample of potentially economic kimberlite will help definea mineral resource estimate for the Star kimberlite.

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

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

S

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

“We are very excited by what we see here on the Prairies,” saidDu Plessis. “We are looking forward to developing and produc-ing mines for Saskatchewan.”

GoldOther companies in Saskatchewan’s minerals industry havebeen in operation for years and are currently going throughexpansion projects to increase production. Claude Resourcesowns and operates the Seabee gold mine, located 125 kilome-tres northeast of La Ronge, Saskatchewan. The mine has beenin continuous production for the past 16 years, producing inexcess of 750,000 ounces of gold.

The mine is a high-grade, narrow-vein, underground operationthat processes an average of 600 metric tonnes of ore per dayat a grade of eight grams per tonne. Changes to the millingcapacity will make it possible for the company to expand theirmilling operation up to 1,000 tonnes per day, which is almost a50 per cent increase in production.

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

Until now, all of the feedstock for the mill came from theSeabee ore body. Claude Resources is currently developingthree projects within trucking distances.These satellite ore bod-ies include Santoy 7, which is expected to be in production bythe end of the year, Santoy 8, and Porky Lake, which will allcomplement Seabee Mine’s steady production.

“We expect the Seabee Mine to continue to produce indefi-nitely.We are very encouraged by our exploration results in thearea and expect the operations to expand fairly significantlyover the coming years and continue to operate at thoseexpanded levels for a long time,” said McMillan.

The company’s success in exploration has made it possibleto increase production in response to the rising price ofgold and in order to reduce unit costs. Operating profitmargins should increase considerably along with general

November 2007 | 25

ShoreGoldad.qxd 10/19/07 10:35 AM Page 1


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

One of the challenges facing this expansion project hasbeen the increase in the cost of consumables such as fuel,energy, explosives, and steel. Also, increasing mill capacity to1,000 tonnes per day means a larger winter resupply, whichadds to inventory costs. The Seabee site is accessed by air(fly-in/fly-out) and by 66 kilometres of ice road in the win-ter. The site is resupplied for the entire year between Januaryand March.

Another challenge has been the increased pressure in themining business on the labour front. McMillan explained,“Across the country the increase of mining activity has putpressure on a scarce resource—experienced miners. In west-ern Canada, this is an even bigger challenge because of com-petition from the oil sands. We are under cost pressures topay more for regular staff.”

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

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come and work at a site as opposed to a community sitewith regular nine to five hours. McMillan said, “There aresome advantages to working in a remote location. We striveto hire people from our impact community whenever we canand we work hard to treat our employees right; we pay com-petitively, we have a nice camp, and an outstanding reputa-tion for food.”

There are challenges associated with development andexpansion projects but companies remain optimisticabout Saskatchewan’s resources. “We are being carefulwith the expansion,” said McMillan. “It’s going to be acontinual expansion over the next three years and we arenot rushing it. By [the time we reach completion], wemight find additional high-grade reserves and continueour operating level beyond 1,000 tonnes per day. We arethe biggest gold producers in Saskatchewan history. Theprevious largest mine produced 215,000 ounces of goldwhile we are now at 750,000 ounces and we believe wewill continue to produce.”

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

“WE CAN DO IT,” is the way AFD responds to customer requirements. As Western Canada’s leading full-service petroleum products and service supplier to the mining industry, AFD’s success is predicated on the commitment of staff and management towards superior customer service.

AFD’s strength in working with the mining industry is in the exploration or prospecting stage through to development of the mine. AFD can also support the operation of the mine at full production with on-site fueling solutions such as cardlocks, fuel and lubricant supply and on-site equipment fueling.

“Our service is all encompassing,” says Parker McLean, president of AFD. “Not only can we provide a secure supply of fuel, we also offer a variety of fuel pricing options to our customers to help them manage their fuel expense more accurately and meet the financial projections of the mine.”

Fuel contracts can be based on a

fixed price for a specific quantity of fuel during an agreed upon period of time, up to 60 months in the future. Contracts can also be offered with price caps.

AFD offers a complete service that is unmatched in the industry. With AFD’s fleet and experienced drivers, fuel can be delivered to the most remote, rugged areas possible. Tanks are available for safe, on-site storage and AFD can also provide remote satellite monitoring, regardless of location, to eliminate costly fuel run-outs and manage inventory.

AFD can also supply, install and manage on-site cardlock fueling facilities. Standard set-ups and customized units are available. Systems include internet-based technology for accurate record-keeping, billing and reporting. Satellite fuel-level monitoring is also available with the cardlock system.

Through the use of truck-mounted bar code technology, AFD offers real-time billing information, capturing pump data on the delivery vehicle. This provides the customer with unprecedented detail on billing information, right down to how

much fuel or lubricant was loaded in a piece of equipment.

AFD has revolutionized the way bulk lubricants are stored and handled at mine sites by designing and manufacturing Lube-tainers – heated bulk lubricant and grease storage units that solved the problem of dealing with messy materials, especially in cold weather.

“When a customer presents us with a problem, we figure out a way to solve it,” adds Trevor Ritchie, AFD’s vice president. “Technology has provided many solutions to challenges our customers face, but the real secret to customer service is being knowledgeable about each type of project and unique jobsite. We hire people with experience in the mining industry so we can provide the best possible outcomes.”

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by Carolyn Hersey


ameco Corporation has a new baby on theway—otherwise known as the

Millennium Deposit. Millennium is a base-ment-hosted uranium deposit nestled 35

kilometres north of Key Lake in northernSaskatchewan and is currently in the feasi-

bility phase. It sits on the Cree Extensionexploration lease, which is a joint ven-ture between Cameco, JCU, AREVA, and

UEM (Cameco being the project man-ager). Drilling in 2000 led to the initial discov-

ery of mineralization. The pre-feasibility study was com-pleted in September 2006 and the feasibility study isexpected to be complete in early 2008.After a lengthy conversation with sen-ior geotechnical engineer James Hatley,I now have a better idea about howCameco and its partners plan to raisethis new addition.

At the moment, facilities at theMillennium deposit are minimal. Withonly the Cree Extension explorationcamp and a winter road in place,there’s plenty of work to keep thecrew busy. The plan is to put in infrastructure, power, awater treatment plant, service shaft, ventilation shaft,administrative buildings, surface equipment shop, emer-gency generators, a concrete batch plant, and a water treat-ment facility, which will include monitoring ponds and anemergency water pond. They will also have a clean wastepad, an ore pad, and an acid-generating rock pad, whichwill, of course, be lined.

Cameco looks to add one more to its production lineupThe sinking of two concrete-lined shafts (to depths of 755and 630 metres) is anticipated, and the mine will consist oftwo main levels and five sublevels located at 20-metre verti-cal intervals. The shaft sinking is expected to begin in 2012and with equipping will probably take about two and a halfyears. The mineralization is located in dry basement rock butthe shafts traverse water-bearing sandstone. Blasthole stop-ing is the planned mining method.

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

backskipping is also being investigated. Hatley added that “cur-rent plans are to build a 10,000 m3 per day conventional watertreatment plant to support shaft sinking and lateral develop-ment. This plant may be supplemented later by a reverse osmo-sis plant capable of treating and discharging up to 80 per cent ofthe feed water. Remaining water will be treated by the conven-tional treatment plant. A supplemental emergency water treat-ment circuit capable of treating an additional 20,000 m3 per day

of water is planned.”

Before any site construction begins (targeted for2012), a 24 kilometre access road will be con-structed in 2011. Power will be provided from theexisting grid with a new power line running paral-lel along the access road to the mine. First oredevelopment is expected to begin in 2016 with anannual production of six to seven million poundsU3O8. Because ore will not be milled onsite,they’ve been looking at their options. Their mostlikely choice will be Key Lake, about 45 kilometresfrom the site. They will probably ship about 500tonnes daily in haulage. All in all, the Millenniumdeposit has an expected mine life of about eightyears, and boasts an indicated resource of 37.5million pounds, and inferred resources of 9.7 mil-lion pounds U3O8 based on the September 2006feasibility study.

Astute planning and designAn interesting aspect in the development of thisproject has been the use of 3D seismics: a geo-

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physical technique used to better determine where criticalinfrastructure (such as shaft locations) should be placed inorder to avoid or mitigate geotechnical hazards.With the helpof geophones, they are able to look at geotechnical structuresto a depth of 600 to 700 metres below surface. This is impor-tant in case there are any adverse structures near the mine, orif there are any water-bearing structures in and around thetwo proposed shafts. This technology is not exactly a newone, but it is up-to-the-minute in its application to theAthabasca Basin.

The lead geophysicist on the project is Garnet Wood, who isin charge of the Millennium Project Seismic Program. Thusfar, they’ve acquired about 10 terabytes of raw seismic datain the program. The program included both surface andborehole seismic survey techniques, more specifically, a full3D surface survey, a Stepout VSP (vertical seismic profiling)survey and two SideScan (multi azimuth single hole) surveysin the proposed shaft pilot holes. The objectives of this pro-gram were to image, in as much detail as possible, theunconformity, the major structures located in proximity ofthe deposit and the shaft pilot holes, and either the miner-alization or the alteration halo located around the deposit.The 3D surface survey was completed using a Swept ImpactVibsist® seismic source, supplied by Vibrometric Oy Cosmaof Toronto, Ontario, and an I/O 3C digital acquisition sys-

tem, provided by Kinetex Ltd. of Calgary, Alberta. Kinetexwas responsible for all field logistics while Vibrometric OyCosma was responsible for all quality control, borehole seis-mic data acquisition, and for the processing and integrationof all seismic data.

The initial 3D and stepout VSP results indicate that the sur-vey was successful. As indicated in Figure A, significant top-ographical detail is evident in the current unconformityinterpreted from the 3D dataset compared to the unconfor-mity derived from drill results alone (Fig. B). The most signif-icant result of the 3D seismic survey to date is that theMillennium deposit appears to sit on the eastern flank of anapparent north-south trending graben. As illustrated inFigure C, the unconformity and major Post Athabasca base-ment structures have also been imaged by the 3D surfaceseismic survey. A number of seismic reflectors, representingPost Athabasca sandstone structures, have also been imagedby the stepout VSP data (Fig. D). This information is beingused to test the suitability of two shaft pilot holes for futureshaft sinking, along with hydrological data and geotechnicaldata. The processing and interpretation of all the seismicdata is ongoing.

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

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Cameco and its joint venture partners believethis is setting a high standardfor geotechnical investigations

• Completed shaft pilot hole drilling and packer testing forhydrogeology

• Completed surface geotechnical investigations for sightingof infrastructure

• Completed geotechnical evaluation of the mining planand 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 feasi-

bility study)

The list is growing and has miles yet to develop, but underHatley’s supervision, the project is well underway. Millenniumoffers potential employment and wealth to the province, andis a prime example of the responsibility that goes into turn-ing rocks into money. F

in the technology is highly evident; of an $8 million feasibil-ity budget, the Millennium Project Seismic Program consumes$4 million. That’s half of the budget, but for Cameco and itspartners, it is very important for them to understand anygeotechnical concerns involved in shaft sinking and minedevelopment, which is why they’ve gone through consider-able expense and effort to develop this technology for use inthe Athabasca Basin.

The 3D seismics program isn’t the only priority on Cameco’slist. They remain focused on many social and environmentalissues as well. In the aquatics field, baseline studies and sourceterm characterization are being carried out, and they are alsoconducting ERA (Environmental Risk Assessment) pathwaysmodelling. In hydrogeology, groundwater quantity and qual-ity studies are being performed. With waste rock, both geo-technical and geochemical studies will be conducted, whichwill most likely carry on into 2009. Hatley added that otherenvironmental aspects of note are “the discharge of treatedmine effluent into Moon Lake, the likelihood for some acid-generating waste rock in mine development, and the need forore transport from mine to distant mill.” For both stakehold-ers and shareholders, there is a comprehensive project: theenvironmental impact statement which will also go on into2009. In this study the project, at the feasibility engineeringstage, will be described, possible environmental effects will beidentified, and measures to mitigate any adverse effects willbe proposed.

When considering new environmental initiatives, LorneSchwartz, Cameco senior mmetallurgist, mentioned the fol-lowing. Membrane filtration technology is being evaluatedat current Cameco operating sites, and shows promise toimprove effluent quality. Water produced from mine work-ings, such as that expected from Millennium, could be fedto a membrane filtration plant rather than directly to aconventional chemical treatment plant. Carefully selectedmembranes produce two streams: high-quality water withlow dissolved solids that is suitable for release and asmaller concentrated stream that can be more efficientlytreated by chemical means. A hybrid membrane and chem-ical system is anticipated to be the next generation ofwater treatment plant design for Cameco, representing abig step to reduce the loading of dissolved elements ineffluent 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 Camecoand its joint venture partners are:

• Completed surface and down hole seismic survey

by Dan Zlotnikov


s the rash of new mining projects in Saskatchewan con-tinues to challenge the provinces’ ability to keep up,

relief may come from the very same remote areas inwhich mining developments most often end up.

Instead of trying to attract skilled labour in an ever-more competitive market, companies would be

wise to look to the local First Nations commu-nities for both workers and contract service

providers.

Dealing with the aboriginal bands is a dif-ferent experience from what most mining firms are used to,but the rewards are well worth it, said vice president and gen-eral manager of Northern Resource Trucking LimitedPartnership (NRT), Dave McIlmoyl. NRT, McIlmoylsaid, has been providing the vast majority of truck-ing services to uranium producers AREVA ResourcesCanada and Cameco Corporation.

“We’re on our second five-year exclusive contract with AREVAand have finished a six-year contract, a five-year contract, andare now on our second five-year contract with Cameco,” heexplained—quite an achievement for a company that startedthe journey in 1981 with six gravel trucks.

As McIlmoyl said, the company’s path to success began whenthe Key Lake Mining Corporation was looking for a freighthauler to service its uranium mine. Key Lake’s land lease stip-ulated that a portion of the benefits from the developmentgo to the residents of Saskatchewan’s North. “Those happento be about 85 per cent aboriginals.” Because of this stipula-tion, Key Lake sought out aboriginal-owned contractors andplaced very specific requirements on them. Aboriginal-ownedKitsaki Development Corporation has been operating a smallfreight hauling company for two years, but could not providethe necessary capacity to meet Key Lake’s needs. At the min-ing company’s suggestion, Kitsaki approached the muchlarger—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 RongeIndian Band), and 49 per cent owned by Trimac.

By 1986, the newborn company was hauling freight for KeyLake (soon to become part of Cameco) and AREVA (thenCogema Resources Inc.) but was struggling under the burdenof the special requirements placed on it.

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

While Cameco agreed to the proposal, it wanted to see thebenefits spread among more communities than just Lac LaRonge. To that end, the partners agreed to sell off 41 per centof NRT, spreading out the ownership among 11 other FirstNations and Métis partners. Today, Kitsaki retains 30 per centof the company, Trimac owns 29 per cent, a company repre-senting the three Dene First Nations holds 20 per cent, andseven other partners own 3 per cent each.

The company, with its newly diversified ownership, was on amuch firmer footing, and better prepared to meet Cameco’straining program requirements. In fact, that program has beengrowing and is on the verge of becoming an added source ofrevenue for NRT.

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

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

“We can offer Class 5 training [standard sedan licence], fork-lift, and school bus driver training, and we’re working on oth-ers as well,” said McIlmoyl. “We’re in the process of offeringour training services to mining companies, First Nationsbands, and local schools—not just our guys anymore. We’vealso had simulators from Northlands College to do heavyequipment training in our facility. We had a diamond drillingclass here as well. We’re trying to turn our training programinto a profit centre as well as training northern aboriginals forus. And it’s working fairly well.”

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

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

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

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

First Nations key to continued mining growth

A“Today, the majority

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

Such an influx of locally available labour is a potential boonto the mining companies, provided they take the necessarysteps in advance. Cameco is an example of a company doingthat very thing.

“Since 1992,” said Cameco spokesperson Lyle Krahn, “we’veinvested more than $8 million in training and educationprograms for northern people.” The company works withgovernment agencies and northern communities, to developprograms geared towards future employment in mining, butalso offers in-house training, summer student employment,

and scholarships. The company also sends representatives tothe northern schools each year, to encourage the kids tostay in school and, hopefully, go to work for Cameco aftergraduation.

Krahn said Cameco is focused on getting more northern stu-dents into technical schools and universities, so that the com-pany can increase the number of northern people in its tech-nical, supervisory, and management positions. To that end,“Cameco has given $1 million to the University ofSaskatchewan in support of science and math, to ready north-ern students for science and engineering at the post-second-ary level.”

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

McIlmoyl highlighted the importance of the type of partner-ships and economic development Cameco and NRT areencouraging. “Saskatchewan needs people in the workforce,and First Nations groups need jobs for the kids coming out ofschool so they’re not forced to go on welfare. It’s so impor-tant for community economic development and the FirstNations groups to work together, and it helps the businessesin the province to be able to tap into that.”

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

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

“I grew up in a small community of about 200 and thenmoved to Regina to go to university and work. I felt someculture shock, and I was a white guy who spoke the lan-guage. I can just imagine how someone from the northerncommunities feels in this situation. Not only are theyfrom a small community, but they are also a visibleminority and they don’t speak the language. So take whatI felt, times 100.”

To assist with thetransition, NRT offerslife skills training thatcovers everythingfrom opening a bankaccount to renting anapartment to buyinga car. Cameco, inturn, brings in eldersfrom the nearby First

Nations communities as part of its Site Elder program.

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

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

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

As the development in northern Saskatchewan continues, weare likely to see more partnership businesses, simply becauseeven the influx of First Nations labourers will be insufficientto meet the mining sector’s needs.

“We’re likely to see a decline in northern residents as a per-centage of the total work force, even as their overall numbergrows,” said McIlmoyl. “There are about 50,000 people whoare considered northern residents, and over half of those areunder 16, and some are over 65. That doesn’t leave a very biglabour pool.”

But while the skilled labour shortages are unavoidable, theinclusion of First Nations and other northern residents in thedevelopment process may serve to smooth out the processand provide more economic stability for this growing part ofthe province. F

November 2007 | 33

are part of the wage economy… because there just aren’t enough mooseand fish left in northern Saskatchewan to support today’s population.”— D. McIlmoyl

by H. Eve Robinson


otash Corporation of Saskatchewan Inc.(PotashCorp) is currently expanding thecapacity of five sites in the province toraise total production capability from

10.7 million tonnes (in 2007) to 14.9 mil-lion tonnes by 2011.

Potash is only found in 12 countries, but it is needed in almostevery country in the world. PotashCorp produces potash,nitrogen, and phosphate products for use as fertilizer for agri-cultural crops, as a phosphate component of feed ingredientsfor animal nutrition, and for the production of industrialchemicals. Potash is the core of the company’s business.

Global demand for potash is increasing. Most of the industryis operating at or near full capacity so PotashCorp is expand-ing potash capacity to help meet that demand. PotashCorpcurrently holds 22 per cent of the world’s potash capacity and75 per cent of the world’s excess capac-ity. The company is bringing back someidled capacity, as well as expanding itsproduction capacity.

In the late 1980s, there was a decline inthe demand for fertilizers with the collapseof the Soviet Union. PotashCorp respondedby reducing production to match marketdemand and idled some capacity.

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

Expansion projects at the company’s Rocanville site were suc-cessfully completed in 2005 and at Allan in 2007. Idle capac-ity at PotashCorp’s Lanigan site is currently being reinstatedand is expected to finish in the second quarter of 2008. Thisproject will bring back 1.5 million tonnes of production capac-ity per year by refurbishing a mill, upgrading equipment andhoists, and improving compaction capability. The facilities atCory will also add another 1.2 million tonnes of capacity bymid-2010, and enable the site to produce red potash; it cur-rently produces only white potash products. All of theseexpansion projects involve getting more product from under-ground to the surface, increasing throughput at the mills, andmaximizing production in the mine. However, the PatienceLake project is different. This site is a solution mine, which isexpected to finish expansion by 2009. Solution mines use awarm brine injected below ground that works through themine and comes up to be processed. In this case, the expan-

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

“In total,” said Moore, “[these expansion projects] will addmore than four million tonnes of new or revitalized capacityin Saskatchewan and New Brunswick. The world market isabout 50 million tonnes per year of potash requirements. Thegrowth of the market is estimated at three to four per centper year, which amounts to an expected 1.5 to 2 milliontonnes of new production required in the market each year.We are bringing up our production capabililty to keep up withthat growth.”

The main factor contributing to the increasing globaldemand for potash is economic growth in countries likeChina and India. As people make more money, their diettends to improve. This primarily involves increasing theamount of protein in their diet. More protein translates to

more meat, which means more animal food requirements (orfeed). This results in more agriculture, such as corn, andfinally increases the demand for fertilizers. Soybean produc-ers in Brazil are also expanding at a rapid rate and they areheavy users of potash.

“It’s a multi-faceted growth story,” explained Moore. “Manycrops have potash requirements. While meeting this growingfood demand is the primary driver of our business, the biofuelbusiness is growing. In the US, ethanol plants use corn, whilein 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 expansionprojects have encountered some challenges. One difficultyhas been the availability of materials and manpower. Moorestated, “There are so many projects going on in westernCanada it is very competitive to get steel and fabricationdone. Costs are escalating because of the shortage of steel,and supplies are very expensive now compared to when westarted the projects three to four years ago.”

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

Growth of a fertilizer company PotashCorp expansion projects in Saskatchewan

PTo meet the growingdemand for potash,

these expansion projects haveencountered some challenges

of the advantages in the way PotashCorp has staged theirexpansion projects in Saskatchewan has been that they areable to move crews and contractors from plant to plant asone project finishes and the next one begins.

“We have had the benefit of being able to move the sameworkforce around to overcome some of the labour shortagesmany industries are experiencing,” Moore explained.

With all the expansions at PotashCorp, the company isactively looking for new employees to join their company.Many of the current employees started in the mid-1960s andthey are beginning to retire. Many of the workforce are veter-ans, some with over 30 years of experience; others have lessthan five, and there is a large gap in between.With the chang-ing demographics, everyone in the industry will need toattract and retain staff.

“In the mining industry, there is a growing shortage of peoplefrom all divisions, such as analysts, mining engineers,accountants, operators, mechanics, and electricians,” saidMoore. “With all the expansions in Saskatchewan and new jobopportunities becoming available, I would encourage morepeople to pursue the qualifications to meet the growing needfor people in the mining business.”

Saskatchewan hosts a large flatland ore body that has thepotential to produce potash for many years to come. Even byconservative estimates, the province could supply the world’spotash demand at current levels for hundreds of years yet.With the increasing global demand, companies such asPotashCorp are preparing to meet these needs with somenew approaches.

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

The company was recently awarded the CICA (CanadianInstitute of Chartered Accountants) honourable mention forExcellence in Sustainable Development Reporting. The com-pany’s sustainability report presented information on eachoperating site, their management policies, governance sys-tems, and environmental impacts.

“We have always viewed sustainability as being integral tothe long-term success of our company,” said Moore. “Westrive to be upfront and transparent in everything we do. Ithas continued to grow over the years and has developed aspart of our culture.” F

November 2007 | 35

by Dan Zlotnikov


he first curious thing about rare earth ele-ments (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 GaryBillingsley, chairman and CFO of Great Western MineralsGroup, but in finding a deposit that is concentratedenough to be economical.

The second curious thing, Billingsley added, is how little-known these elements are, especially considering theextensive impact they have on our everyday lives.

“There are new applications for REEs being developed almostevery day,” said Billingsley. Existing applications alreadyinclude catalytic converters (cerium), any electronic devicethat needs small, high-powered magnets (neodymium), andLCD monitors (yttrium, europium, and terbium), to name buta few. Billingsley, citing a report by BCC Consulting, predicted

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

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

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

Already, China has placed restrictions on the amounts of REEsbeing sold to external markets. The prediction is that Chinesesupply will at best remain flat through 2010. Part of the rea-son for this, said Billingsley, is that there simply aren’t anynew places for China to mine.

“The Chinese are extracting the REEs from tailings,” heexplained. “The REEs are a side benefit of an iron mine atBayan Obo.”

The original design did not incorporate the extraction of REEsfrom the ore, so for the time being, the Chinese operation hasa massive stockpile on the surface from which to extract theprecious elements. However, the only other deposit is in the

form of ionic clays in the southof China which, Billingsley said,have become “an environmentaldisaster” due to illegal miningoperations. Understandably, theChinese government is hesitantto open that area up for develop-ment, having just finished shut-ting down the illegal mines.

With politics suddenly playing alarger role in their supply chain,manufacturers are becomingconcerned about where theirrare earths are coming from,said Billingsley. Some are evengoing as far as investing in themining operations, somethingthey would normally be hesi-tant to do, due to the riskiernature of the mining and explo-ration business.

“Japan, for example, is very con-cerned and is aggressively seek-

ing additional sources for its REEs,” said Billingsley. But supplysources outside of China may fall far short of meeting theoverall demand.

Great Western’s goal for Hoidas Lake was to be able to meetten per cent of North America’s demand for Rare EarthElements come 2010.

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

TGreat Western to mine the periodictable’s best-kept secret

industry. So we asked ourselves, ‘can we supply onetenth of that?’” Based on that estimate, Billingsleyexplained, the drilling targeted only one zone at theHoidas Lake site.

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

The current plan is to make a production decision inlate 2008 and, if the decision is positive, proceedwith permitting and construction to be completedaround 2010.

Assuming all goes well, and Hoidas Lake enters operations onschedule, the mine will be providing 10,000 tonnes annually.There are three other operations Billingsley names as themost likely to reach production around the same time. Allthree are in Australia: Lynas Corporation’s Mt. Weld, ArafuraResources’ Nolan’s Bore site, and Navigator Resources’Cummins Range project. All four combined, however, are notlikely to exceed 25,000 tonnes of annual production, leavinga supply gap of roughly the same amount.The shortfall prom-ises hard times and stiff competition for the manufacturersusing REEs, but sounds like excellent news for projects likeHoidas 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 rareearths,” said Billingsley, “so naturally, governments are reluc-tant to let people dig the stuff up. But Saskatchewan has gonethrough the whole radioactivity thing with uranium, so it’s amuch more receptive environment.”

Another benefit is the so-called “basket” ofREEs being extracted. The balance of the basketis very important, as the specific REEs range inprice from the most common, cerium, at $20/kgall the way up to the rarest, lutetium, at$6,000/kg. “Hoidas surprised us with its unusu-ally high concentrations of neodymium,” saidBillingsley. As a result, July pricing for theHoidas basket was around $17,000/tonne.“Mountain Pass in California, which is mostly acerium and lanthanum mine, would be valuedat about half that.”

Despite the site’s remote location – roughly 800kilometres north of Saskatoon – there is a gooddeal of infrastructure in place, due to the proxim-ity of Uranium City and the aboriginal commu-nity of Fon Du Lac. The latter, Billingsley said, hasexpressed a great deal of interest in the project,not in small part due to the REEs environmentaland green technology implications.

“The community of Fon Du Lac is very interested in potentialspinoff businesses,” said Billingsley. “We’re looking into build-ing our mill there, so that way the workers wouldn’t evenneed to leave the community.” Great Western has had exten-sive experience working with the native bands, he added, andis planning on continuing the relationship. The bands, on theirside, have had lots of experience working with the miningindustry, and can provide Hoidas with the qualified labourforce and related services the mine will need.

Interestingly, the mine itself is not just a rare earth mine. “Ifwe were outside of Saskatoon,” said Billingsley, “this would bea phosphate mine, pure and simple.” Because of the remote-ness of the site, the smaller volume of REEs was deemed moreeconomically feasible. But with the government promising toextend the permanent road into Fon Du Lac, bringing it towithin 50 kilometres of the mine (right now the road ends atStony Rapids, 130 kilometres from the site), and the town ofFon Du Lac quite interested in using the phosphates to man-ufacture fertilizer or fire retardant on-site, the project is wellpositioned to go on as planned. F

November 2007 | 37

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®2007, GAC

362_CAN_CShaw_Press.indd 1 6/27/07 3:01:32 PM

by Carolyn Hersey


hat a great time for min-ing in Canada—a number

of new mines are lookingtowards achieving initial

production, including VictoryNickel Inc.’s Minago nickel

deposit. The Minago propertycan be found in Manitoba’s

Thompson nickel belt, approxi-mately 225 kilometres south of

Thompson, Manitoba. Initial explo-ration on the site was done by Amax

Potash Limited about 40 years ago and since then has beenworked by several companies, landing safely in the hands ofVictory Nickel (previously Nuinsco Resources Limited) whoowns 100 per cent of the mining lease on the property.

When current president of Victory Nickel Brian Robertsonlooked at the deposit four years ago, he envisioned an open pitmine rather than an underground operation. Convenientlylocated along a paved highway, which runs parallel to a powerline, only 60 kilometres from the Omnitrax Canada railway line,paired with the current robust nickel price of nickel, Robertsonsaid “the timing is just right!” Manitoba Provincial Highway 6serves as a major transportation route north to Thompson, and

the 230-kilovolttransmission linewill provide powerfor the site. Becausekey components tothe operating costare electricity andfuel, and Manitobaboasts some of thelowest electricalcosts in Canada, thelocation and facili-ties have proven tobe pretty ideal forthe Minago project.

In addition to excel-lent infrastructure,

one of the big pluses for the project is the ability to produce anextremely high-grade nickel concentrate at Minago. For thescoping study completed last fall, a concentrate grading 27 percent nickel, along with other payable metals, was produced.One of the biggest benefits from producing such a high-gradeconcentrate is the marketing options it creates. While CVRDInco’s metallurgical facility, located just to the north inThompson, presents an obvious destination for the concen-trate, the high grade offers the alternative of shipping to almostanywhere in the world.

In June 2006, at Victory Nickel’s request, “an independent reviewof the geology, exploration history, historical resource estimates,

resource estimates, and the potential for discovery of additionalnickel mineralization of the Minago property in central Manitobawas conducted by geologist P. J. Chornoby.” It was found that theresource is actually buried beneath a 10-metre surficial layer ofoverburden (peat, sands, and clay) followed by a 50-metre layerof limestone. Beneath the limestone and at the contact of thebasement rocks is a layer of silica sand, and beneath the silicasand lay the granite and ultramaficrocks. The sand was actuallydeemed to have the potential asfrac sand for use in the oil welldeveloping industry. The ore bodyitself contains both serpentinite andperidotite ores, the serpentinitebeing closer to the surface. This isimportant to keep in mind “as metalrecoveries and plant operating costsvary depending on the type of ore.”

The main, or Nose, deposit is large(49.1 million tonnes of measuredand indicated resources and anadditional 44.1 million tonnesinferred) and relatively low-grade(0.516 per cent nickel in measuredand indicated and 0.528 per centnickel for the inferred) ore and willbe processed onsite by means ofcrushing, grinding, flotation, thick-ening, concentrate filtering, anddrying process steps.Aside from thepower line, highway, and railwayline, other infrastructure needed tobe constructed include: processingand maintenance facilities, a millbuilding to house the ore process-ing equipment, water and sewagefacilities, warehouse, office, and dryfacilities, and a service facility tomaintain the mining equipment.The technology being used is fairlystraightforward; the only standoutis their use of larger-than-normalhaul trucks. The 240-ton trucks arenot large by industry standards, butare fairly monumental in the‘10,000-ton-per-day’ category.

Robertson added that one of thebiggest and most important issuesis water quality and flow. “It isanticipated that significant groundwater quantities will be encoun-tered in the overburden surround-ing the proposed open pit. Thiswater must be controlled to pre-

Brian Robertson

The timing is just right

W

vent water entry into the mining operation. A hydrogeologicalassessment of the ground water potential will be undertaken todetermine aquifer characteristics and potential dewateringscale and impacts. General hydrogeological information for thistypical geology would indicate that groundwater is present ineach of these units and would be expected to flow into the pro-posed open pit excavation. Testing will be used to predict therequired well spacing and discharge volumes required to lowerthe water table around the open pit.”

November 2007 | 39

Minago core shack

“The Minago deposit has demonstrated potential as alarge-tonnage, low-grade nickel sulphide depositamenable to open pit than further to underground bulktonnage mining methods,” states Minago’s PreliminaryEconomic Assessment. As an open pit mine, it should pro-duce about 10,000 tonnes a day with an expected 13-yearmine life, based on the known resource. Explorationpotential remains at depth, where grades typicallyincrease, and to the north, where limited historical drillinghas intersected similar grades to those found in the Nosedeposit. Currently in the midst of a bankable feasibilitystudy (expected to be completed by mid-2008), Minagohopes to be operational by 2010. Robertson said that thusfar, they’ve had the support of the surrounding communi-ties and have been in touch with Norway House, CrossLake, Grand Rapids, Moose Lake, and Snow Lake. Becausemining is quite common in the area, people seem to bewelcoming Minago (and its employment opportunities)with arms wide open. Despite the fact that it is generallya mining community, there don’t seem to be too manynew mines in Manitoba, so for Robertson and his crew,this upcoming project is a very exciting one. With manyfacilities already existing and the current price of nickel,things seem to be falling into place. Like Robertson said,the timing is just right! F


rowflight Minerals Inc., the holder of over700 square kilometres of exploration

property in the Thompson Nickel belt, is inthe process of moving from exploration to

production.

The development in question is the BuckoLake deposit, part of the TNB (ThompsonNickel Belt) South project. Located near

the town of Wabowden, the site is justover 100 kilometres south of Thompson,

Manitoba. Crowflight’s consultant, Micon International, com-pleted an updated feasibility study early this year, andCrowflight hired Met-Chem Consulting of Montreal to com-plete the detailed engineering and assist in project manage-ment of the construction. In addition, Crowflight hired Bogeand Boge of Winnipeg, Manitoba, to supplement the con-struction management team. The contract mining firmDumas Contracting has begun underground activities on thesite. The underground mining operation is expected to beginproduction in the second quarter of 2008.

The site has been known since the late 60s, saysCrowflight’s president and CEO Mike Hoffman, but was

never developed by the then-owner Falconbridge. Themost likely reason for this was the deposit’s relativelysmall size. The mine is expected to produce just short of5,700 tonnes of nickel a year, which is a very small amountindeed when compared to today’s global production ofover 1.4 million tonnes.

Despite the project’s comparatively small size, things lookpromising. “We used a US$8/lb nickel price in our estimates,”said Hoffman, “so anything north of $8 per pound will be animprovement 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 continueto outstrip the growth in supply. The site boasts excellentinfrastructure, which should help keep the transportationcosts down. Wabowden is a mere two kilometres away, andHighway 6, one of two main north-south routes in theprovince, is five kilometres farther. “There is also a rail spur 1.5kilometres away,” added Hoffman.

Although new to Crowflight, Hoffman is particularlyimpressed with the depth of the Crowflight operating andexploration team. “Our operations group, led by Paul Keller,and our exploration group, led by Greg Collins, have been able

to assemble an impressiveand experienced team.This depth of experienceis unusual for a juniormining company at thisstage,” said Hoffman.

The support of the localcommunity of Wabowdenand the First Nationscommunity of Cross Lakehas been very helpful. “Itis very important toCrowflight that our localstakeholders benefit fromour activities. Betweenourselves and our con-tractors, we are commit-ted to local training andhiring. It makes goodbusiness sense to uselocal people. We haveupdated the local com-munities on our plans andwe plan to continue thispractice through themine development andoperating life,” addedHoffman.

As part of Crowflight’soff-take agreement, the

Crowflight project under construction

by Dan Zlotnikov

CAerial view of the Bucko Mine site taken in May. Photo courtesy of Crowflight Minerals.

mining + engineering + construction


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

One of the unusual things about this project isCrowflight’s decision to begin construction before thecompletion of the permitting process. “Many companieswould wait to receive all their permits before beginningconstruction,” said Hoffman, “but we’re doing both con-currently. Given the great support we have received fromboth the federal and the Manitoba governments, weexpect the remainder of the permitting process to gosmoothly, enabling us to develop this resource to the ben-efit of local stakeholders while the metal market condi-tions remain strong.”

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

By entering production in sucha short time, Crowflight standsto benefit from the lesseneduncertainty of metal prices.The near-term projections fornickel promise a strongdemand and good prices, whichCrowflight is ready to welcomeand make good use of.Hoffman cited the company’sestimate that at a US$10/lbnickel price, they’d be generat-ing an annual cash flow ofUS$80 million.

“We have 250 million sharesoutstanding, trading aroundCDN$0.70,” said Hoffman. “Ourmarket capitalization is aroundCDN$150 million. If you’re gen-erating cash flow of $80 million,it’s pretty significant. Our share-holders should be pretty happy.”

For this reason, Crowflight isconsidering expanding itsannual production volume, tofurther capitalize on the highprices. “We completed a scopingstudy in July,” said Hoffman,“that showed that we couldincrease our daily throughputfrom 1,000 tonnes to 1,500

tonnes, and it would cost us CDN$8 million in capital invest-ment. However, the additional capital investment willincrease our annual cash flow by CDN$20 million.”

Of course, Hoffman acknowledged, such a move woulddecrease the lifespan of the mine, currently set at seven years.“The belief of our geologists is that excellent potential existsto extend the lifespan through continued exploration.Additional reserves are expected through the conversion ofcurrently identified inferred resources and by exploring openextensions to mineralized trends.”

“Our first priority is to extend the lifespan of the mine,”said Hoffman. “If we can find even higher grade material atBucko, that will also improve the economics, and there’salways the possibility of another stand-alone depositalong the belt.” Crowflight recently issued a press releasedetailing new inferred resource estimates within 20 kilo-metres of Bucko Lake at M11A, Halfway Lake, BowdenLake, and Apex. In addition, there is an excellent explo-ration target at Bucko North, which is 400 metres fromBucko Lake. There is plenty of territory for Crowflight toexplore at the site; the company’s holdings, Hoffman said,cover about 700 square kilometres of territory. “A lot ofexploration still left to do.” F

by Debbie Sarik

n August 23, 2006, San Gold Corporationpoured its first gold bricks after purchas-

ing and reopening the Rice Lake Minein southeastern Manitoba. Now, justover a year later, ongoing explorationhas led to many new developments.

The Rice Lake Mine had been closedsince the end of 2001. At the end of

2003, with the belief that gold priceswould rise, San Gold made an offer to pur-

chase the mine. This was great news for the peopleof the small nearby town of Bissett. Presently, about 230 peo-ple are employed at the mine and San Gold takes pride in thefact that the workforce is mainly local and that a large por-tion of it is comprised of First Nation people.

San Gold took over the mine with the vision of maximizing cost-effectiveness in two ways. Firstly, in order to maintain a constantfeed to the mill, they intend to develop a number of mines in theRice Lake area. Secondly, with some deposits relativelyclose to the surface and therefore having lower opera-tional costs, overall production costs across the com-pany should be averaged down.

Exploration in the area is anticipated to continue inaccordance with the company’s strategy. Dale Ginn,CEO of San Gold, said they “expect continuousdrilling in the Rice Lake Mine over the foreseeable future.”With its location in the southeastern part of Manitoba, RiceLake is in a belt of volcanic and igneous rock that stretchesinto Ontario. Ginn explained that the geology and age of therock is the same in Rice Lake’s greenstone belt as it is in thegold-producing Red Lake belt in Ontario. Ginn estimatedthat 100 times more dollars have been spent on explorationin the Red Lake area than at Rice Lake, which suggests greatpotential for further discoveries at San Gold. Gold reserveshave gone from 550,000 ounces to over 1,600,000 ouncesin just over two years. Pleased with results to date, Ginnadded “with high grade out in some of the new zones of theRice Lake Mine itself, we anticipate adding significantlyagain to 1,600,000 ounces.”

With the goal of mining in multiple locations, San Gold hasexplored four new sites to date. In addition to new develop-ment in the main Rice Lake Mine, recent discoveries havebeen 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 millionounces to date. “What San Gold has done is to focus onexploring and developing some of the high-grade areas orareas that we thought had potential to contain high grade,”explained Ginn. During Phase I, San Gold drilled below thelowest developed areas of the mine around the main veins, toextend them and possibly discover some new ones. Phase II

drilling, which is ongoing at a higher level in the mine, at4,800 feet, has resulted in the discovery of veins of variedgrades. Initial testing indicates two, and possibly three, ofthese veins are high grade.

To the east, SG-1 was discovered in the 2004 to 2005 timeframe. It is three kilometres east of the Rice Lake Mine and wasdeveloped in 2006. It has been drilled to about 1,200 feet.SG-3, discovered towards the end of 2005, is a further threekilometres east of the mill. Exploration activities have resultedin 40 drill holes to date. SG-3 is hosted in the same structureas SG-1 and this body runs for at least 15 kilometres on theground that San Gold controls. They will be working to iden-tify the best location from which to mine reserves in the area.

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

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

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

When asked about any environmental impact, Ginn explainedthat he believes San Gold is a great example of how the min-ing industry can be positive for a region. “At Rice Lake you’vegot local people benefiting from the operations’ very, veryinsignificant footprint, and the town and the environmentand industry co-existing,” he said.

With recent developments, the atmosphere at the mine isquite upbeat. Ginn takes pride in the fact that explorationefforts at San Gold have led to a production phase that manysmaller organizations never reach. “There’s just so few of usactually going into production, relative to the number of proj-ects that are out there and the number of companies explor-ing,” said Ginn. Given the odds, being one of the few who suc-ceed is quite an accomplishment. F

Building up Rice Lake

November 2007 | 43

OSan Gold is a great

example of how the miningindustry can be positive for a region


he McClean Lake area is a hub of develop-ment activity for Areva Resources, as the

McClean Lake mill expansion is underway, and multiplemine deposit developments are being worked on.

The first phase of the McClean Lake mill expansion isalmost complete, bringing the mill’s capacity to 12 mil-lion pounds of U3O8 annually, from a current licensedcapacity of eight million pounds.Originally, the expansion was designedto handle ore slurry from the high-

grade Cigar Lake mine, however, now, withthe arrival of that ore delayed, the mill isadapting its operations to handle lowergrade ore from the Sue E and B mines.

A new oxygen plant and ferric sulphateplant coming online will help improve effi-ciencies. The oxygen is used in the ferricsulphate plant and in the ore leachingprocess. The ferric sulphate is used as areagent in the tailings neutralization andwater treatment plant processes. This plantcould provide the biggest payback when processing ura-nium 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. Inthis event, the $10 million plant could save a quarter of amillion dollars monthly.

The mill isn’t the only focus of expansion onsite at McCleanLake. In anticipation of future activity, 140 new rooms arebeing added to the permanent camp, doubling the existingcapacity.

On the mining side, a number of projects are ongoing thatcould provide future feed for the McClean Lake mill, includ-

ing the Mining Equipment Development (MED)project, McClean underground, Sue E, Sue B,and the Caribou project, all of which are at dif-ferent stages of development.

The MED 2007 project ended in August, withsignificant progress made regarding extractinguranium ore from small ‘pocket’ deposits usingan innovative jet boring technique from sur-face. Additional test work is required to bringthe method to the industrial stage.

An underground mine is being planned near theentrance to the McClean Lake site, and wasalready considered in the original McClean Lakeenvironmental assessment process. Productionis targeted for 2011.

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

The final project, the Caribou deposit, is movingforward with the regulatory process. Aims areto complete and submit the environmentalassessment by early next year.

With so many projects in the pipeline, Areva islooking forward to a productive future. F

At AREVA Resources, our core business is mining. We are looking for experienced mine engineers,

metallurgists, engineers and professionals to join our team.We offer diversity and variety to engage your talents.

Contact us to learn more about the opportunities available now!

Looking for variety in mining?

Take a look at AREVA Resources.

Looking for variety in mining?

Take a look at AREVA Resources.

AREVA Resources Canada Inc.

Saskatoon: (306) 343-4500 [email protected]

www.ArevaResources.ca

by Heather Ednie

TMcClean Lake update

In this event,the $10 million plant could save

a quarter of a million dollars

monthly.

ue la Saskatchewan soit au premier plan dansle domaine de l’exploitation minière mon-

diale ne surprendra pas personne ! Elle pro-duit environ le tiers de la production mon-diale de potasse et d’uranium.

La sécurité et l’environnement La sécurité des gens et la protection de l’en-

vironnement représentent les fondations denotre industrie. Notre succès se reflète dansdes statistiques d’accidents inférieures à la

moyenne provinciale et les nombreux prix ga-gnés. Cependant, le meilleur prix est que chacun rentre chezsoi à la fin de la journée. La même attitude pousse l’industrieminière à respecter l’environnement pour les générationsfutures.

Exploration Pour alimenter la prochaine génération de mines, l’ex-ploration en Saskatchewan a été revitalisée par lahausse des prix des produits de base et son excellentpotentiel géologique. Pour ne donner qu’un exemple,le prix de l’uranium a grimpé de 7 $US/lb en 2001 àplus de 130 $US/lb cet été. La province attire cetteannée 17 % de tous les investissements canadiens enexploration minérale. En 2007, il se dépensera plus de270 M$ en exploration, une augmentation d’un fac-teur de 10 par rapport à 2002. D’autres compétiteurs,l’Australie et le Kazakhstan, nous talonnent de prèsavec des réserves d’uranium plus vastes que celles dela Saskatchewan.

ProductionEn 2006, la valeur des ventes de minéraux a atteint 3,2milliards de dollars; plus de 25 mines produisent unevaste gamme de minéraux. Le kaolin vient de s’ajouterà la liste et les diamants pourraient bientôt faire par-tie du portfolio. En 2007, la valeur des ventes devrait

atteindre un record de 4 milliards de dollars, surtout en raisondes ventes de potasse, dont les réserves permettront à laprovince d’être un producteur dominant jusqu’au siècleprochain. De plus, avec la demande pour une énergie sans pro-duction de gaz à effet de serre, la Saskatchewan est très bienplacée pour satisfaire les demandes futures en uranium.

Notre rôleLes interactions avec les gouvernements forment une grandepartie du travail de la Saskatchewan Mining Association. Nousavons eu des succès dans la réforme de la taxation et les pro-grammes de formation; nous travaillons aussi à améliorer lesystème de demandes de permis et à clarifier les engage-ments quant à l’obligation de consulter les peuplesautochtones. F

L’industrie minérale de la SaskatchewanCatalyseur pour la renaissance de l’économie

November 2007 | 45

Q


e nouveaux projets miniers mettent laSaskatchewan au défi de demeurer concurren-

tielle et la solution pourrait venir des régionséloignées, justement là où se bâtissent lesnouveaux projets. Au lieu d’essayer d’at-tirer une main-d’œuvre qualifiée dans unmarché de plus en plus compétitif, les

compagnies auraient avantage à se tournervers les communautés des Premières

Nations pour les travailleurs.

« Les compagnies minières n’ont pas l’habitude de traiteravec les autochtones, mais les bénéfices en valent la peine »,dit Dave McIlmoyl, vice-président et directeurgénéral de Northern Resource Trucking LimitedPartnership (NRT), dont la compagnie fournit la plu-part des services de camionnage aux producteursd’uranium.

Une clause du bail de terrain de la compagnie KeyLake Mining Corporation exige qu’une portion desbénéfices aille aux résidents du nord de laSaskatchewan, à 85 % autochtone. Key Lake a sug-géré à la compagnie autochtone Kitsaki DevelopmentCorporation de rencontrer Trimac Transportation; ensemble, ilsont formé Northern Resource Trucking (NRT).

« Nous devions offrir des bénéfices et des programmes deformation aux communautés nordiques, ce qui nous plaçaiten position de désavantage vis-à-vis la compétition », dit M.McIlmoyl. « Nous avons donc demandé à Cameco de nousaccorder un contrat exclusif à long terme pour tout leur trans-port et, ainsi, nous pourrions offrir un meilleur programme deformation. »

Ayant ratifié l’entente, Cameco voulait que d’autres commu-nautés en bénéficient, non pas uniquement celle de Lac LaRonge. À cette fin, les partenaires ont vendu une partie deNRT, distribuant la copropriété parmi 11 autres partenairesdes Premières Nations et des Métis.

Au début, la compagnie demandait au Saskatchewan Instituteof Applied Science and Technology de faire la formation; ellepossède maintenant sa propre école certifiée par le gouverne-ment. « Nous offrons maintenant des formations sur lesvoitures, les chariots élévateurs à fourches et les autobus sco-laires. Nous prévoyons offrir nos services de formation auxcompagnies 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 soientrentables en plus de former les autochtones qui travaillerontpour nous », dit M. McIlmoyl. De plus, la populationautochtone est l’un des segments de la population qui croît leplus rapidement; au cours des prochaines années, de plus enplus de jeunes chercheront de l’emploi.

Un tel influx de main-d’œuvre locale disponible est un vérita-ble bienfait pour les compagnies minières, à la conditionqu’elles s’y préparent. Le porte-parole de Cameco Corporation,Lyle Krahn, explique : « Depuis 1992, nous avons investi plusde 8 M$ en programmes de formation et d’éducation des peu-ples nordiques, travaillant avec les agences gouvernementaleset les communautés nordiques. La compagnie envoie desreprésentants dans les écoles pour encourager les jeunes àpoursuivre leurs études et à venir travailler pour Cameco. » Lacompagnie a aussi donné 1 M$ à l’Université de laSaskatchewan afin de préparer les étudiants venant du nord àdes études post-secondaires en sciences et génie.

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

Il faut cependant tenir compte de l’ajustement à la transition.M. McIlmoyl explique : « J’ai grandi dans une petite commu-nauté d’environ 200 personnes; lorsque je suis allé à l’univer-sité à Regina, j’ai subi un choc culturel même si j’étais blancet que je parlais la langue. Pour quelqu’un venant des com-munautés nordiques, cela doit être 100 fois pire. »

Pour aider à effectuer cette transition, NRT offre des forma-tions générales : ouvrir un compte de banque, acheter unevoiture. Cameco amène aussi des aînés des communautésavoisinantes sur le site; ces derniers y passent de 4 à 6 jourspar mois afin d’aider les gens à faire la transition. Un pre-mier emploi dans une entreprise autochtone sert aussi de« tremplin ».

À mesure que se poursuit le développement du nord de laSaskatchewan, l’embauche d’autochtones ne suffira pas àcombler les besoins en personnel. Selon M. McIlmoyl :« Environ 50 000 personnes résident dans le nord, dont lamoitié a moins de 16 ans. Le réservoir de main-d’œuvre n’estdonc pas si grand ». Même si les pénuries de main-d’œuvresont inévitables, l’inclusion des Premières Nations dans ledéveloppement aidera à les atténuer et, en même temps,fournira une stabilité économique pour cette partie de laprovince en pleine expansion. F

Les Premières Nations détiennent la clé de la croissance de l’industrie minièreD

« Nous voulons que nos programmes de formation soientrentables en plus de former lesautochtones qui travaillerontpour nous » –M. McIlmoyl

November 2007 | 47

’exploration minérale en Saskatchewan a augmenté d’unfacteur de 10 au cours des cinq dernières années. Cetteprovince possède des gisements de kimberlite diaman-tifère parmi les plus riches au monde.

La province comporte deux régions géologiques. Lazone Nord, comprenant le Bouclier précambrien et leBassin de l’Athabasca, est caractérisée par d’anciennes

roches sédimentaires, desroches cristallines et des grès;elle renferme des minérauxéconomiquement importants,

tels l’or et l’uranium, tout en constituant un environnementpropice à la formation de kimberlites diamantifères. La zonesud est composée de roches sédimentaires plus jeunes etrenferme des réserves d’argile, de postasse, de pétrole, degaz naturel et de charbon.

DiamantsShore Gold Inc. recherche des diamants en Saskatchewandepuis 1996. Cette compagnie possède 363 concessionsminières couvrant 139 500 hectares situés 60 km à l’est dePrince Albert, Saskatchewan. La kimberlite Star a une épais-seur d’environ 88 m et elle couvre un secteur de plus de4 km2, recouvert par des morts terrains atteignant 90 m.

Pieter Du Plessis, vice-président, exploration, signale que lacompagnie a dû développer des méthodes spécialisées pourextraire les échantillons nécessaires à la cartographie de lastructure 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 préciserla distribution des diamants ainsi que de l’échantillonnage envrac pour estimer le prix de ces diamants sur le marché », ditM. Du Plessis. Un échantillonnage en vrac de 45 000 tonnes aproduit 7 500 carats de diamants d’une valeur moyenne de135 $/carat, soit le double de la moyenne mondiale. « La kim-berlite pourrait produire de très gros diamants de très bonnequalité pour plusieurs années. »

Bien que la demande pour les diamants provienne surtout desÉtats-Unis, du Japon et de la Communauté européenne, lacroissance économique de l’Asie continuera à accroître lademande. « Le moment est propice pour ce projet et, en sup-posant que nous serons prêts vers 2011-2012, la demandesera encore plus grande que notre production; nous prévoyonsdonc une hausse des prix », dit M. Du Plessis.

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

extraire de 10 000 à15 000 tonnes dekimberlite. « Si l’esti-mation est réussie,nous convertirons laressource en réservevers le milieu de 2008.L’évaluation avancéecomprend l’estima-tion de la teneur, laconception de l’usineet la préparation del’étude d’impact environnemental. »

L’orD’autres compagnies en Saskatchewan ont actuellement desprojets d’augmenter leur production. Claude Resourcesexploite la mine d’or Seabee située à 125 km au nord-est deLa Ronge. La mine, un gisement filonien souterrain, est en pro-duction continuelle depuis 16 ans; on y extrait en moyenne600 tonnes métriques par jour à une teneur de 8 g/t. La com-pagnie prévoit accroître la production à 1 000 t/j.

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

M. McMillan souligne : « Ce ne sont pas toutes les compagniesqui peuvent agrandir, nous avons le minerai pour soutenir uneexpansion. » L’un des défis a été l’accroissement des coûts decombustible, des explosifs et de l’acier. De plus, une capacitéaccrue signifie des stocks plus élevés de minerai pour l’hiver,ajoutant à nos frais d’inventaire. Le site Seabee est accessiblepar avion et par une route de glace en hiver. Tout l’approvi-sionnement 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 surune ressource rare : la main-d’œuvre qualifiée. Dans l’Ouest,c’est encore plus marquant en raison de la compétition dessables bitumineux. »

En raison de l’éloignement de la mine, les employés travaillentselon des horaires semaines de travail / semaines de congé.« Nous nous efforçons d’embaucher des gens locaux, nouspayons des salaires compétitifs, notre camp est bien et lanourriture est extraordinaire », dit M. McMillan. « Nous avonsdémontré qu’il existe un potentiel significatif pour des gise-ments d’or rentables en Saskatchewan. Nous espérons quecela encouragera d’autres compagnies à dépenser pourexplorer, développer et exploiter dans cette province. » F

LTirer partie des ressources aurifères et diamantifères de la SaskatchewanProjets de développement et d’expansion


l faut tout d’abord savoir que les éléments des terresrares (ÉTR) ne sont ni des terres ni rares. Le nom a étédonné au groupe des lanthanides dont certains élémentssont plus abondants que le plomb. « Le défi n’est pas deles trouver mais de trouver un gisement assez concentrépour être rentable », dit Gary Billingsley, président etdirecteur financier de Great Western Minerals Group. Ilest aussi surprenant de voir à quel point ces élémentssont inconnus étant donné leur grand impact sur notrevie quotidienne.

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

Même si la demande croît et que les prix ne chutent pas, l’ap-provisionnement pose des problèmes. « La Chine fournitactuellement plus de 90 % des ÉTR mondiaux, mais, à mesureque son économie se développe, elle en utilisera de plus enplus pour ses propres besoins », dit M. Billingsley. « Ce paysrestreint déjà les quantités vendues aux marchés externes. LesÉTR sont extraits des résidus miniers d’une mine de fer àBayan Obo. »

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

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

Si tout va bien et que Hoidas Lake respecte son calendrier, lamine fournira 10 000 tonnes annuellement. Trois autresexploitations australiennes pourraient démarrer en mêmetemps. Cependant, tous ces projets combinés nedépasseraient pas une production annuelle de 25 000 tonnes,laissant un manque du même ordre de grandeur et annonçantune compétition serrée entre les utilisateurs d’ÉTR pour leurapprovisionnement.

« Il y a généralement de la radioactivité associée aux terresrares », dit M. Billingsley. « Les gouvernements hésitent par-fois avant de permettre leur exploitation. La Saskatchewan adéjà de l’uranium, la question de la radioactivité a donc ététraitée. »

Un autre bénéfice est « l’ensemble » des ÉTR extraits. Les prixdes ÉTR spécifiques varient du plusfréquent, le cérium, à 20 $/kg, au plusrare, le lutétium, à 6 000 $/kg. « Hoidasnous a surpris avec sa concentrationélevée de néodyme », dit M. Billingsley.Les prix en juillet pour l’ensemble étaitdonc d’environ 17 000 $/tonne. « Lesprix pour le minerai de Mountain Pass,en Californie, une mine de cérium et delanthane, seraient la moitié de cettesomme. »

En raison de la proximité d’UraniumCity et de la communauté autochtonede Fon Du Lac, des infrastructures sontdéjà en place. « Cette communautéest très intéressée dans les retombéescommerciales potentielles », dit M.Billingsley. « Nous pensons y installernotre concentrateur ».

« Si nous étions à l’extérieur d’unegrande ville, comme Saskatoon, cettemine serait une mine de phosphate.Étant donné l’éloignement du site, levolume moindre des ÉTR a été jugéplus économiquement rentable ». F

Great Western prête à extraire le secret le mieux gardé du tableau périodique

I

November 2007 | 49

otash Corporation of SaskatchewanInc. (PotashCorp) augmente lacapacité de production de cinq sitesde la province afin de passer d’une

production de 10,7 Mt (en 2007) à14,9 Mt d’ici 2011. La demande mondi-

ale croît et l’industrie produit déjà presque à plein régime.

La potasse se trouve seulement dans 12 pays, mais presquetous les pays en ont besoin. PotashCorp fabrique des produitsde potasse, d’azote et de phosphate pour les cultures, l’ali-mentation animale et des produits chimiques industriels.PotashCorp déteint actuellement près de 22 % de la capacitémondiale.

Vers le milieu des années 1980, la demande pour les fertili-sants a diminué avec la chute de l’Union soviétique.PotashCorp a alors réduit sa capacité de production afin demaintenir les prix. Le président de PCS PotashCorp, GarthMoore, explique : « L’industrie de la potasse se trouvait ensituation de surcapacité durant plusieurs années; les marchésont cependant rattrapé la capacité mondiale et cela signifieque nous devrons retrouver notre capacité de satisfaire lademande actuelle. »

Certains projets d’expansion sont terminés (Rocanville etAllan) et l’expansion à Lanigan sera terminée l’an prochain,ajoutant 1,5 Mt par année. Les installations de Coryajouteront aussi 1,2 Mt d’ici le milieu de 2010 et permettrontau site de produire de la potasse rouge. L’expansion àPatience Lake est différente. C’est une mine à extraction pardissolution, demandant donc plus de tuyauterie pouraccroître la production.

« Au total, ces projets augmenteront la capacité de produc-tion de la Saskatchewan d’environ 4,5 Mt/an dans un marchémondial d’environ 50 Mt/an. La croissance annuelle desmarchés est estimée à 1,5 Mt. Nous ajustons donc notrecapacité à cette croissance », dit M. Moore.

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

Cependant, les défis sont nombreux. « Ces projets d’expan-sion ont besoin de matériaux et de main-d’œuvre », pour-suit-il. La main-d’œuvre actuelle est composée de gens ayant

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

En Saskatchewan, le gisement de potasse est plat et vaste etil a le potentiel de fournir de la potasse pour des années àvenir; la demande mondiale actuelle peut être satisfaite pourdes centaines d’années. Avec l’augmentation de la demandemondiale, des compagnies telles que PotashCorp se préparentpar de nouvelles approches. « Nous utilisons des technologiesde pointe afin de minimiser nos émissions, déjà faibles, de gazà effet de serre », explique M. Moore.

La compagnie a récemment reçu une mention honorable del’Institut canadien des comptables agréés dans le cadre desConcours des meilleurs rapports d’entreprise de l’ICCA. « Nousavons toujours considéré le développement durable commeune partie importante de notre compagnie », dit M. Moore.« Nous nous efforçons à être francs et transparents dans toutce que nous entreprenons; cela fait partie de notre culture. » F

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

PExpansion à Lanigan

ameco Corporation a du nouveau, le gisementMillennium, un gisement d’uranium situédans le socle, à 35 kilomètres au nord de

Key Lake en Saskatchewan. Des forages en2006 ont conduit à cette découverte et l’é-

tude de pré-faisabilité a été effectuée lamême année. L’étude de faisabilité devrait

être terminée au début de 2008.L’ingénieur principal en géotechniqueJames Hatley nous explique ce qui

est planifié.

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

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

Avant le début de toute construction, on construira laroute et amènera l’électricité. Le développement devraitdébuter en 2016 avec une production annuelle de6 300 000 livres de U3O8. Le minerai ne sera pas traité surle site; le scénario le plus probable est le transport de570 tonnes de minerai par jourréparties entre Key Lake (50 %)et une ou plusieurs autresusines du nord. La durée de vieprévue pour le gisementMillennium est de huit ans,avec des réserves indiquées de37,5 millions de livres et desressources inférées de 9,7 mil-lions de livres de U3O8.

Planification et conception astucieusesUn aspect intéressant dudéveloppement du projet est l’u-tilisation de sismique 3D, unoutil géophysique qui aidera àdéterminer l’emplacement desinfrastructures critiques, tellesque les puits.

Le géophysicien principal duprojet est Garnet Wood. Environ10 terabytes de données brutesont été colligées, en provenance

de deux compagnies géophysiques. L’information a ététraitée en Finlande.

Cameco et ses partenaires de co-entreprise misent sur latechnologie géotechnique. Leur confiance est évidente car leprogramme sismique coûte 4 millions de dollars du budget de8 millions de dollars pour l’étude de faisabilité. La compréhen-sion des enjeux géotechniques est très importante, ce quiexplique les efforts dans le bassin de l’Athabasca.

Les enjeux environnementaux et sociaux sont aussi priori-taires pour Cameco. Étant donné que le site Millenium estsujet à des droits fonciers issus des traités, la compagnie ren-contre régulièrement les Premières Nations de English River.

Pour l’eau, on effectue des évaluations environnementales deréférence, des caractérisations de l’eau de source et desétudes de la qualité de l’eau souterraine. Les études géotech-niques et géochimiques de la roche se poursuivront sansdoute jusqu’en 2009. M. Hatley ajoute que les autres aspectsenvironnementaux étudiés seront « la décharge de l’effluentminier traité dans le lac Moon, le potentiel de générer dudrainage minier acide lors du développement de la mine et letransport du minerai entre la mine et l’usine de traitement. »

Il reste beaucoup à faire, incluant l’évaluation de la radiationsur la santé, mais le projet commence bien. Millenium offreun potentiel d’emplois et de prospérité pour la province etreprésente un bon exemple de la responsabilité intrinsèque àl’exploitation d’une mine. F

Une autre mine pour Cameco

C


e moment présent est vraiment propice pour les mines au Canada : plusieursnouveaux gisements entreront en production, dont le gisement de nickelMinago de Victory Nickel Inc., situé dans la ceinture de nickel Thompson.L’exploration initiale a été effectuée par Amax Potash Limited il y a environ40 ans; de nombreuses compagnies y ont travaillé depuis et la propriétéappartient maintenant à Victory Nickel (anciennement Nuinsco ResourcesLimited).

Cette mine souterraine est avantageusement située le long d’une route pavée,d’une ligne de transport d’énergie de 230 kV et à seule-ment 60 kilomètres d’une voie de chemin de fer. Ces con-ditions, 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 concen-tré de nickel à très haute teneur. Dans le cadre de l’étude de délimitation, la com-pagnie a produit un concentré de 27 % de Ni en plus d’autres métaux. Bien quel’installation de CVRD Inco soit proche, la teneur élevée permet d’expédier le con-centré presque n’importe où au monde.

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

Le moment est propice

L

an Gold Corporation a coulé ses pre-mières briques d’or le 23 août 2006,

après avoir acheté et réouvert la mineRice Lake dans le sud-est du Manitoba.

La mine était fermée depuis 2001. Cesont de bonnes nouvelles pour lesgens de Bissett; environ 230 person-nes travaillent à la mine, principale-

ment des autochtones.

San Gold voulait développer plusieursmines dans le secteur pour un approvisionnement constantà l’usine de concentration et abaisser le coût moyen deproduction.

Dale Ginn, président et chef de la direction de San Gold,mentionne qu’ils effectueront des forages continuels dans unavenir rapproché. La géologie et l’âge de la roche de la cein-ture de roches vertes de Rice Lake sont les mêmes que cellesde la ceinture aurifère de Red Lake en Ontario. M. Ginnestime que les dépenses dans le secteur de Red Lake sont100 fois supérieures à celles du secteur de Rice Lake, sug-gérant un grand potentiel de découvertes d’or, si l’on y metle prix. Les réserves sont passées de 550 000 onces à plus de1 600 000 onces en un peu plus de deux ans. Avec les nou-velles zones à haute teneur dans la mine, on prévoit dépasserces réserves.

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

l’exploration et le développement des secteurs à hauteteneur ou potentiellement à haute teneur. Des foragesautour des veines existantes ont permis de découvrir denouvelles veines à diverses teneurs dont deux ou trois àhaute 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’usinede concentration, dans la même structure que SG-1, laquellese prolongerait pour au moins 15 kilomètres.

A l’ouest, le gisement Cartwright, découvert au printemps2006, se trouve dans la ville de Bissett et dans la même unitéque Rice Lake. Le gisement Gabrielle se situe entre Cartwrightet 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 000onces 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 ellene fonctionne actuellement qu’à 500 tonnes. À la fin de l’an-née, on devrait atteindre 800 t/j et plus de 1 000 t/j à la finde 2008. À 800 t/j, le coût de production serait d’environ345 $ l’once.

Interrogé sur les impacts environnementaux, M. Ginn expliqueque San Gold est un bel exemple d’un effet positif de l’indus-trie minière dans une région. Il est fier du fait que les effortsd’exploration ont conduit à une production que plusieurs pluspetites organisations n’atteignent jamais. F

Expansion à Rice Lake

Sest située sous 10 m de morts terrains et 50 m de calcaire.Une couche de sable de silice se trouve sous le calcaire, aucontact du socle. Ce sable pourrait servir en tant que sable defractionnement pour les puits de pétrole. Le gisement propre-ment dit contient des minerais de serpentinite près de la sur-face et de péridotite. Ce fait est important car la récupérationdes métaux et les coûts d’exploitation sont fonction du typede minerai. »

Le gisement principal – Nose – possède 49,1 Mt de ressourcesmesurées et indiquées à 0,516 % de Ni et 44,1 Mt deressources inférées à 0,528 % de Ni; le minerai sera traité surle site. Il reste à construire l’usine de traitement, des installa-tions sanitaires et des entrepôts. Les processus seront rela-tivement standards; seuls les camions de 240 tonnes sontgros pour une exploitation de 10 000 t/j. La durée de vieprévue est de 13 ans.

M. Robertson ajoute : « L’enjeu le plus important sera laqualité et le débit de l’eau. Des quantités significativesd’eau proviendront des morts terrains et elles devront êtrecontrôlées. Une évaluation hydrogéologique déterminerales caractéristiques de l’aquifère et l’échelle d’assèchement.Des essais serviront à déterminer l’espacement des puits depompage requis pour abaisser la nappe phréatique. »Minago espère pouvoir entrer en production d’ici 2010.

M. Robertson signale avoir le soutien des communautésavoisinantes. Étant donné que la région connaît bien l’in-dustrie minière, la compagnie (et ses possibilités d’em-ploi) est accueillie à bras ouverts. Comme le dit M.Robertson : « Le moment est propice ! » F

November 2007 | 51

Forage à Minago


rowflight Minerals Inc. passera bientôt d’ex-plorateur à producteur en ce qui concerne

le gisement Bucko Lake, situé à un peu plusde 100 kilomètres au sud-ouest de

Thompson. Micon International a terminé l’é-tude de faisabilité et a embauché Dumas

Contracting pour la construction. La minesouterraine devrait démarrer au deu-xième trimestre de 2008.

Connu depuis la fin des années 1950, le siten’a pas été développé par Falconbridge qui le détenait alors,

probablement en raison de sa petite taille, signale le présidentet chef de la direction de Crowflight Mike Hoffman. En effet,la mine devrait produire annuellement environ 5 700 t denickel—très peu par rapport à la production mondialeactuelle de plus de 1,4 Mt. Le nickel produit sera vendu àXstrata Nickel.

« Nos estimations sont effectuées sur une base de 8 $US/lbet le prix actuel avoisine 14 $US/lb. Le site est à proximitéd’un village, d’une route nationale et d’une ligne de cheminde fer secondaire », dit M. Hoffman.

Crowflight a décidé de commencer la construction avant l’ob-tention de tous les permis. M. Hoffman signale que la com-pagnie a reçu de bons appuis des divers gouvernements. Cettemanière de faire raccourcira le délai de temps avant le débutde la production. La décision d’acheter des équipementsusagés aidera aussi.

Avec des délais plus courts, Crowflight bénéficiera des prévisionsà court terme concernant les prix des métaux. À 10 $US/lb, lacompagnie générera un encaissement annuel de 80 M$US.« Nous avons 250 millions d’actions en circulation et notre capi-talisation boursière est d’environ 150 M$C. Nos actionnairesdevraient être passablement contents », dit M. Hoffman. « Uneétude démontre que nous pourrions accroître notre productionannuelle à 1 500 tonnes; cela demanderait des investissements,mais augmenterait notre encaissement de 20 M$C. »

Évidemment, cela diminuerait la durée de vie de la mine,estimée à sept ans. « Notre priorité est d’accroître la durée devie de la mine par de l’expansion, en convertissant nosressources inférées en ressources indiquées, en découvrantdes teneurs plus élevées ou un autre gisement à proximité. Ilreste beaucoup d’exploration à faire », conclut-il. F

Le projet Crowflight en construction

cClean Lake est une région enpleine effervescence pour lasociété Areva Resources qui adécidé d’agrandir ses installationsminières pour y exploiter de multi-ples gisements.

La première phase des travaux d’a-grandissement est presque ter-minée et portera la productionannuelle de U3O8 de huit millionsde livres à douze millions de livres.

À l’origine, la modernisation des installations visait à traiter leminerai à forte teneur provenant de la mine Cigar Lake.Cependant, en raison de retards de livraison, la mine a décidéde traiter le minerai à plus faible teneur en provenance desmines Sue E et Sue B.

En outre, deux nouvelles usines, l’une d’oxygène et l’autre desulfate ferrique, permettront d’augmenter l’efficacité. L’usinede sulfate ferrique, d’une valeur de dix millions de dollars, rap-portera vraisemblablement des économies mensuelles del’ordre de deux cent cinquante mille dollars lorsqu’elle trait-era le minerai d’uranium à forte teneur en arsenic commecelui que l’on trouve à la mine Sue A et comme celui que l’ondevrait trouver à la mine Sue E.

Par ailleurs, un certain nombre d’autres projets devraitgénérer de l’activité pour la mine de McClean Lake; mention-nons le projet MED (développement de matériel minier), leprojet d’exploitation d’une mine souterraine près du siteMcClean Lake et, enfin, le projet Caribou.

Le projet MED 2007 a permis de réaliser d’importantes per-cées au chapitre de l’extraction du minerai d’uranium dans depetits gisements en ayant recours à une nouvelle techniquede forage par jet en surface. Toutefois, d’autres essais devrontêtre effectués avant que l’industrie ne puisse avoir recours àcette technique novatrice.

À proximité de l’entrée du site McClean Lake, on prévoitamorcer l’exploitation d’une mine souterraine en 2011. Ceprojet avait été pris en considération au moment de l’étudeoriginale des retombées sur l’environnement autour deMcClean Lake.

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

Avec autant de projets en marche, l’avenir s’annonce plutôtprometteur pour Areva. F

Mise à jour sur la mine McClean Lake

CM

the supply side

November 2007 | 53

ways that are not mining-specific.Further, mining supply firms areexpected to carry out much of thecommercialization of new technolo-gies, products, and services developedin Canada for mining. Virtually noth-ing is known of their commercializa-tion capacity.

New government policy in scienceand technology promises to open thepossibility of expanding the networks ofcentres of excellence to additional sec-tors. So far, mining has not beenaccepted for this level of governmentsupport. In a new round of applications,we need to be able to show that suppli-ers are indeed an integral part of themining innovation chain, active in R&Dand commercialization. In this manner,we want to ensure as much supplier par-ticipation and benefit as possible.

Thus, CAMESE decided to under-take a survey that would attempt tocharacterize the innovation and com-mercialization capabilities of Canadianmining suppliers. The survey was car-ried out in collaboration withCAMESE member Gowling LafleurHenderson LLP, a leading Canadianlaw firm, and Val Cottrill, a partner inthe firm who is a mining engineer,lawyer, and patent agent.

An email message with the two-page,nine-question survey was sent toCAMESE member firms on June 20,2007. The first few questions asked forthe numbers of employees engaged inserving the mining industry, thoseinvolved in innovation, and those inmarketing and selling (commercializa-

Canadian mining suppliers contributeabundantly to innovation in mining

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

tion). The remaining questions focusedon the fields of research, relationships,and the use of patents and other types ofintellectual property protection.

The survey, which is deemed to berepresentative of the more than 230firms that are ‘regular’ members ofCAMESE, reveals that the association

represents firms employingabout 11,600 people whoserve the mining industry.Among these are about1,500 who “work in Canadaon the development of newproducts and technologies

for the mining industry, from pureresearch to production engineering.”Another 1,000 individuals “work onmarket research, marketing, and sell-ing of products and technologies to beintroduced in the future or introducedwithin the last two years.”

A total of 68 per cent of the respon-dents have obtained patents or intellec-tual property registrations. CAMESEmember companies are about equallyinterested in exploration, extraction,and processing, with lesser interest insmelting. The type of research is heav-ily centred on machines or devices(products), less on processes, and evenless on new compositions of matter.With respect to programs and relation-ships, SR&ED is dominant, followedby IRAP, followed again by agreementswith companies, universities, andresearch institutes.

The report, entitled “Innovation andCommercialization Characteristics ofCAMESE Member Mining SupplyFirms,” is available at http://www.camese.org/InnovationSurveyFinalReport.pdf. CIM

About the Author Jon Baird is managingdirector for CAMESE

We want to ensure as much

supplier participationand benefit as possible

Discussions among industry, associ-ations, universities, and governmenthave resulted in a project to form theCanadian Mining Innovation Council(CMIC). With leadership from NaturalResources Canada, the federal, provin-cial, and territorial ministers of minesendorsed the project at their annualconference in Whistler, BritishColumbia, on September 24, 2007.

The council will be a consortium ofindustry, academic, and governmentleaders whose purpose is to strengthenthe competitiveness of the Canadianmining industry by increasing mining

research, innovation andcommercialization across

Canada. Those interested in innovationin mining will soon hear more aboutthis initiative.

The CMIC exercise has shown thatwhile information exists on peopleworking in innovation in the explo-ration and mining fields in universi-ties, research centres, and mining com-panies, statistics on these activitiesamong mining supply firms are notavailable, since they are gathered in

by Jon Baird

student life

In January of this year, I packed myrucksack and boarded a Dash 8 airplaneheaded towards the James Bay Lowlandsof northern Ontario. We were headingto a mine site that will be the first of itskind in the province of Ontario. Locatedapproximately 90 kilometres west of thecoastal First Nation community ofAttawapiskat, the De Beers CanadaVictor Project will be Ontario’s first dia-mond mine.

At this time, the Victor Project was inits construction phase and unlike mostof the passengers on the plane, a smallgroup of us would not be stayingdirectly on site. We were part of DeBeers Canada’s Exploration Division,working on a project known as theVictor Resource Extension Program, orVicREP for short. Victor is one of 16 dia-mondiferous kimberlite pipes discov-ered on the property and we would beevaluating the resources of several ofthese other pipes. Our goal: the possibil-ity of extending the life of the minebeyond the 12 years Victor is expectedto produce.

As a student studying to become amining engineer, I knew that a good firststep would be to work for a mining com-pany in their engineering department onprojects such as mine design, planning,dewatering, and ventilation. But the log-ical step for me in understanding thestages in the life of a mine includedthose before a reserve had been defined.And thus, I spent the next severalmonths with a small exploration team,

who I soon knewbetter than most of

my closest friends. We lived and workedout of an exploration camp set up forcore and bulk sampling programs con-ducted on the Victor kimberlite pipe.The camp had all of the necessities onewould need: a kitchen, sleeping quarters(where we slept four to a cabin), officespace, a core shed, and even a smallworkshop. In fact, the site was largeenough to house more than just ourexploration crew, so when the seasonal

Experiencing camp life

winter road opened up,we shared the locationwith workers involvedin the transportation ofsupplies to site. Theseflat- bed trucks ran 24hours a day and deliv-ered a year’s worth ofconstruction materialsneeded to build theVictor Project in just amatter of weeks. I, forone, marvelled over thelogistics involved insuch an operation andwatched the supply stag-ing areas grow on a dailybasis, to a total of 2,209 loads by the endof the campaign.

During the winter months, our teamendured temperatures as cold as -35ºCand some that exceeded -60ºC with thewindchill. Venturing out in these tem-peratures to spot drill collar locations,we became very good at dressing appro-priately for these weather conditions.When spring set in, I quickly under-stood the importance of a winter drillingprogram, as the once frozen muskegthawed into land almost completelyimpassable, and solid ground turnedinto small ponds and areas where thewater table was very near to the surface.This happened to provide ample breed-ing ground for the area’s most commonpredatory bird: the mosquito.

Camp rotations consisted of threeweeks on site and one week off. Withsuch a rotation, arriving back at theVictor Project clearly highlighted theon-going changes happening aroundthe site. In one week’s time, areas suchas the processing plant and mine livingquarters could change completely andbecome hardly recognizable. It was likethe construction of a small city in arural area of Ontario. In fact, the explo-ration camp was driving distance from

this housing and construction infra-structure of the Victor Mine, and tripsto the site became cleverly known as“going to town.”

In addition to the analysis of drillcore samples and gathering of geotech-nical data at the exploration camp, Ifound myself in the field on a weeklybasis. Determining and marking thelocations of drillholes using flaggedpickets was important for drill setups,especially when the snow-covered land-scapes changed as frequently as the con-struction occurring at Victor.

Throughout my time in the JamesBay Lowlands, I began to understandthe importance and implications thatexploration techniques can have on thedevelopment of a mine. Starting earlyon with detailed airborne geophysicalsurveys, geotechnical analysis of coresamples, and the initial workings of ageological model, I found out firsthandthe relationship between informationgenerated in the exploration stage and amine’s design. I would therefore encour-age any mining engineering studentwith an interest in geology to experi-ence life at an exploration camp. Afterall, the stages in the life of a mine startwith the discovery. CIM

David spotting drill collar locations in the field

by David Milstead

About the AuthorDavid Milstead is a third-year mineral engineering student at the University of Toronto


innovation page

November 2007 | 55

Monitoringof tires for sur-face miningoperations hascome down to asingle focus—how can I makemy tires lastlonger? Thei m m e d i a t eresponse mayseem quite sim-ple, but theimplementa-tion of remedialmeasures still

does not entirely meet the expected out-come. We all know that running a tirefor too long a period causes heat andmechanical separation issues, and thatinadequate running surface housekeep-ing can lead to cuts and other damage.Despite much improved attention tothese areas, we may still be missing anopportunity in terms of how we meas-ure tire life with operating metrics toidentify damage concerns. The tonne-kilometre per hour (tkph) measure istaken as an indication of tire life interms of loads moved over a certain dis-tance within a given time frame.Monitoring and reporting of such valuesare commonly taken as an average for agiven shift, week, or month, andthrough the averaging process, we maybe missing critical information. Whyshould it be, for example, that two sim-ilar trucks operating on similarly main-

tained ground sur-faces have tires onone unit that greatly

outlive those on another? The picture becomes clearer when

we consider the individual tire motionrelative to the ground surface on a real-time basis. Within any given duty cycle,from loading device to dump locale, theground surface may be free from debrisbut will develop a rolling profile, albeitslight, due to long-term surface defor-mations from extended use. As the tire

Improving tire life: a new understanding

moves across the surface,it will react to the groundprofile through responseat the suspension. As aresult, a given tire may,from time to time, floatover the ground surfaceat the expense of trans-ferring the load to theother tires on the unit, orit may itself impact theground with a greatersingle load.

If we consider that alltires on a truck under sta-tionary conditions aresubjected to the weight of the truck oreffectively what we refer to as a “1g”load, then depending on the motion ofthe truck and the nature of the runningsurface profile, any tire may be sub-jected to loads less than or greater than1g, depending on the dynamic motionof the truck. In fact, under some adverseground profile conditions where a truckwas subjected to excessive rolling,pitching, and twisting (racking)motions, the load level on a given tirewas measured as high as 4g, that is fourtimes the nominal load expected to becarried by that tire. However, on reviewof the average tkph data for the shift, theoccurrence was not apparent.

The previous situation is a concern.Consider that if a large number of repet-itive loading cycles are imposed on astructure, it will eventually fail. If theload level is increased and the samenumber of cycles are imposed, then thestructure will fail sooner. If we measurethe average load for the given durationof service, the peak event evidencebecomes smoothed out. It is still therebut we do not recognize its presenceand impact. So what is the answer? Howdo we monitor this phenomenon and,

more importantly, what can we do aboutit? Using an alternative approach formeasuring a tkph equivalent thataccounts for the frequency and size ofpeak loading events would be a goodstart. Software, such as that displayed inthe diagram, allows snapshots of strutloading expressed in “g” level, whichthen captures the tire peak loadingevents.

With the capability to then measuretire loading as a truck operates on agiven haul road, the truck becomes anindicator of haul road conditions. Datais already being collected for mosttrucks; we just need to be able to trans-form the information into a measurethat more effectively indicates haulroad condition. A truck equipped withthis measurement and reporting capa-bility provides the necessary feedbackfor operations to more effectively dis-patch grading equipment to profilehaul roads and lessen detrimentaldynamic loads on tires. Innovativereporting of what the truck can tell us,about not only its own performancebut that of its tires and the runningsurface below, allows us to take actionand improve tire life. CIM

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

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by Gord Winkel and Tim Joseph

Peu importe l’industrie, toutescherchent le même but : produire plus àcoût moindre. Abordons le deuxièmesujet: la réduction des coûts. La solutionfacile est de trouver un compétiteur prêtà offrir le même produit à un prix moin-dre mais avec l’augmentation sans cessedes coûts d’énergie, de la main d’œuvre,du transport, etc., le fournisseur ne peutse lancer dans une guerre de prix car, àla fin, il n’y a aucun gagnant. La plupartfont faillite et le survivant augmente leprix pour renflouer la dette générée parcette guerre. La mine revient donc à lacase départ. Que les prix des métauxsoient à la hausse ou à la baisse, toutesles mines veulent réduire leur coût deproduction. Existe-t-il d’autres solutionspour réduire les coûts et être plus per-formant ?

C’est à ce moment que l’innovationjoue un rôle important: apporter unesolution différente dans le but dediminuer les coûts de production etêtre plus performants. À quel prix ? Il

est étonnant de con-stater que même si le

produit se vend à un prix supérieur, saperformance est totalement différentedu produit existant et, à la fin, les coûtspeuvent être moindres ! Il existeplusieurs solutions innovatrices sur lemarché mais combien d’entre-elles sontvraiment utilisées dans l’industrie ?Très peu. Les solutions innovantes util-isées ont pris des années à percer dansl’industrie minière. Il n’est pas rared’avoir un délai de 10 ou 15 ans entre

la sortie de l’innovation et son succèsindustriel. Pourquoi ? Voici le para-doxe de l’innovation : il faut prouverque la solution innove et réduit lescoûts avec une garantie mais personnene veut être le premier. Où sont lesréférences ? Qui sont les premiers utili-sateurs ? Évidemment, au début de l’in-novation, il n’y en a pas !

Au début de ma carrière, les sociétésminières de fer devaient chercher fortpour trouver des gains énergétiquespotentiels de 5 %. Nous proposionsune solution innovante qui pouvaitaller en chercher 10 % pour l’une d’en-tre elles ! Cette solution occasionnaitun seul problème mais au lieu dechercher une nouvelle solution à ceproblème, il ne fallait pas changer. Àcôté, nous avions une autre solutioninnovante mais cette fois-ci, la mine avu le potentiel qui lui a permis d’aug-menter sa production de 8 % l’annéed’après. Par contre, elle a du dépenserprès de 500 000 $ pour y parvenir.

Dix ans plus tard, je suis toujoursdans le milieu du broyage. Quels sontles progrès ? Très peu, un développe-ment technologique dans le broyageprimaire (HPGR) et deux dans le broy-age fin (Isamill et SMD). Depuis 8 ansdéjà, la compagnie propose une solu-tion innovante pour le broyage fin avecdes gains énergétiques de 25 % à 50 %dans des broyeurs conventionnels !Nous sommes loin du 5 % qui corres-pond souvent à la marge d’erreurindustrielle. Avec ce gain plus élevé,combien y a-t-il de mines qui utilisentle plein potentiel du produit pourdiminuer ses coûts ? Pourquoi ?

La raison première est le manque demain d’œuvre qualifiée. Avec le boomde l’industrie minière et de l’industriepétrolière, tout le monde a besoin demétallurgistes d’expérience. Il n’estdonc pas rare de cons-tater que le manque depersonnel (métallur-giste, technicien)occasionne un ralen-

tissement des projets encours. Donc, aucun nou-veau projet ne peut êtreentamé. Ce qui nous amèneà la deuxième raison : lapriorité des projets. Lesmines se concentrent surles projets les plus renta-bles (augmentation de lacapacité) ou sur les pro-blèmes de stabilité d’opéra-tion causés par des varia-tions du minerai d’unenouvelle zone (flotation).La dernière raison est l’in-connu. Quels sont exacte-ment les gains ? Combiencela représente-t-il ?

Il est étonnant de cons-tater qu’après toutes cesannées de développementdans le broyage, il y a encoredu travail à faire et surtout,place à l’optimisation. Pireencore, tout est à recom-mencer. Nous n’avons pasencore toutes les réponses.Le problème vient du faitque ces solutions innovantesexigent des changements opérationnelspour être optimisé à 100 %. Le manquede personnel empêche cette optimisa-tion. Aussi, peu de gens sont prêts às’aventurer dans l’inconnu. Les opéra-teurs sortent de leur zone de confort. Ilsne veulent pas s’adapter aux nouvellesconditions. Pourquoi changer ? Çamarche. Que fait-on ? On ne change paset on attend.

Parfois, l’innovation s’applique seule-ment sur une certaine partie du procédé(les rebroyeurs ou les cellules de nettoy-age) dont la priorité est souvent ladernière car la diminution des coûts estmoindre (100 000 $ à 150 000 $ parannée). Si cinq de ce type d’innovation

par Michel Brissette

parlons-en

Le frein à l’innovation – nous !


L’auteurMichel Brissette est ingénieur de développement,

Wheelabrator Allevard Enterprise

naire car ce dernier a développé les com-pétences techniques spécialisées dont lesmines n’ont plus. Encore aujourd’hui, lesfournisseurs sont considérés comme desvendeurs et non comme des partenaires.Le fournisseur est prêt à s’impliquerdavantage pour trouver les ajustementsnécessaires et adapter le procédé à sasolution innovante sans que la mine soitpénalisé. Malheureusement, les gestion-naires ne voient pas toujours cet aspect.Je crois que les mines devraient tra-vailler plus étroitement avec les four-nisseurs. Ainsi, les deux parties trou-veront une solution bénéfique avec l’u-tilisation de l’innovation en question(« win-win situation »).

L’innovation, oui, mais qui la freine ?C’est nous qui changeons d’emploi, quichangeons les priorités, qui avons peurde l’inconnu, donc finalement, c’estnous qui la bloquons. CIM

sont appliquées, alors la réduction peutatteindre facilement le demi-million, cequi devient non négligeable. Le seulprix à payer est d’avoir une ressource, lemétallurgiste, ou deux, le technicien, àtemps partiel pour s’en occuper.

L’innovation peut non seulementdiminuer les coûts, elle peut aussi aug-menter les revenus. Récemment, un essaieffectué dans une mine aurifère a prouvéque la solution innovante permettaitd’augmenter la récupération de l’or. Cegain se transforme en un revenu approxi-matif de 700 000 $ par année. Durant cetessai, un potentiel supplémentaire de300 000 $ avait été identifié en optimisantet changeant les paramètres opératoiresdu circuit. Un ajustement doit être effec-tué mais il y a plutôt eu un changementdans les priorités. La décision de la minea été de ne pas procéder immédiatement àcette solution innovante.

Le travail de tout métallurgiste, se-nior ou non, est de détecter ces innova-tions, de les essayer et de trouver lesnouvelles conditions opératoires quipermettront soit de diminuer les coûts,soit d’augmenter les revenus, soitd’avoir les deux à la fois. Il se peut quela nouvelle solution innovante requièredes ajustements dans le procédé. À cemoment, lorsque le potentiel a étéprouvé et que le retour sur l’investisse-ment est rapide, alors c’est à l’ingénieurde solutionner ces ajustements. Maisque faire si l’ingénieur ou le métallur-giste est manquant ou utilisé à d’autresfins ? Souvent, la mine abandonne leprojet au lieu de persévérer et deregarder l’ensemble total des bénéficesapportés par cette solution innovante.

Une solution à ce manque de maind’œuvre qualifié est d’utiliser le four-nisseur plus efficacement comme parte-

parlons-en

November 2007 | 57

À gauche : Charge de Millpebs dans un broyeurà boulets à Inmet TroilusEn haut : Vertimills à Los Pelambres, Chile

des canadiens à l’étranger

Le travail à l’étranger, ça se prépare.Le fait de travailler dans une mine est

déjà une tâche particulière; le faire à l’é-tranger peut être stimulant, voire exo-tique pour qui sait s’y adapter ou carré-ment devenir un cauchemar.

Comment se préparer à vivre unetelle aventure ?

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

Vivre à l’étranger est une occasion devous redéfinir et de mieux comprendrevotre propre culture. C’est d’abord etavant tout un voyage au cœur de votreidentité. Qui n’a jamais entendu parlerde choc ou d’adaptation culturelle ?

Vous quittez un monde nord-américain dans lequel tout est tenupour acquis; électricité, eau (potableet chaude), téléphonie et internet,supermarchés avec abondance de pro-duits, etc.

J’ai eu la chance de vivre des expéri-ences diverses que ce soit en pleine jun-gle à des centaines de kilomètres detoute civilisation, en pleine broussemais à quelques heures d’une impor-tante ville et en savane à quelques min-utes d’un village.

Je travaillais sous forme de rotations :30 jours de travail suivis de 26 jours à la

maison (rotation extra-ordinaire) et 9 semainesde travail suivi de 3

semaines à la maison (moins bonnecelle-là).

Tous ces endroits avaient leur partd’exotisme… au départ.

VoyageLa joie de pouvoir « essayer »

plusieurs lignes aériennes : 6 avions en2 jours et demi pour se rendre à destina-tion. L’incroyable expérience de passerd’un Airbus 340 à un appareil debrousse où l’hôtesse s’asseoit sur laglacière.

Le bon côté est, bien sûr, de pouvoiraccumuler de nombreux « air miles » et

Les tribulations d’un expat

ainsi pouvoirprendre d’autresavions pendantnos vacances et accumulerd’autres « airmiles ».

La plupart desemployeurs vousfont voyager enclasse affaire; cequi vous permetd’arriver à desti-nation en pleineforme et prêt à se mettre auboulot; par con-tre, d’autres n’yvoient pas l’utilitéet se demandentpourquoi on est sifatigué à l’arrivée.

LogementDans les sites miniers reculés, un

complexe est construit sur place. Vousavez donc votre petite chambrette (avecdouche, TV et internet bien sûr). Onvous demande donc de manger, dormiret travailler, on s’occupe du reste(lavage, nettoyage de la chambre,bouffe).

Certains sites sont près de villes ouvillages et, selon les employeurs, on vousoctroie une villa avec tout le personnel(bonne, cuisinière, jardinier, etc.) ou unechambre d’hôtel ou une maison àpartager avec 2 ou 3 autres personnes. Àvous de bien lire votre contrat.

Quand il s’agit d’une mise enmarche (start-up) d’une nouvellemine, c’est carrément du scoutisme :tentes, bivouacs, cuisine de fortune enattendant la construction des locauxdéfinitifs.

ExotismeQui 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 cesont les gens qui sont dans les cages etles animaux en liberté. Vous faites votrejogging matinal en compagnie d’un gué-pard, vous vous faites voler votre ballonde volleyball par des singes et à partir de18h, ça gueule toute la nuit.

Vous rencontrez des gens qui ne par-lent pas votre langue mais qui désirenttellement partager avec vous; des gensqui n’ont pas vos habitudes, vos métho-des mais qui veulent autant apprendreque vous montrer; des gens qui man-gent de drôles de choses et qui pensentque vous manger de drôles de choses;des gens qui ne sont pas trop troppressés et qui se demandent pourquoivous, vous êtes toujours pressés; desgens qui gagnent en une année ce quevous gagnez en une journée; des genspour qui demain c’est demain et cedemain sera exactement comme aujour-d’hui alors que vous planifiez vos vieuxjours dès votre premier emploi.

Un jour ou l’autre, l’exotisme prenddes allures d’irritant pouvant mêmedevenir agressant. C’est la période du


Pause-repas du midi

Bpar Jean-Pierre Rivard

des canadiens à l’étranger

« rien ne fonctionne dans ce foutupays ! » et vous en arrivez même à per-dre le sens de l’humour. C’est le contactquotidien avec la différence qui engen-dre ce renversement de situation. Unmalaise insidieux fait baisser votre seuilde tolérance.

Tout, ou presque tout, peut devenirirritant : climat, nourriture, sommeilinsuffisant, malaises physiques et …gastriques, rythme de vie ou de tra-vail, écart entre richesse et pauvreté,difficulté à s’exprimer dans la languedu pays, difficulté à lire la langue dupays si c’est dans un autre alphabet,attente, foule, hygiène, etc. Bref, tropd’expériences différentes à affronteren même temps, et cela, peu importele pays. Selon l’ampleur des difficultésrencontrées, c’est alors que l’on parlede choc culturel.

Puis, avec le temps, de la patience,beaucoup, beaucoup, beaucoup depatience, le sens de l’humour (trèsimportant, voire essentiel), la joie devivre et l’aisance dans le milieu étrangers’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 lalangue du pays si c’est une langue

que l’on ne maîtrise pas. C’est unesimple question de respect,

• échanger avec les personnes du pays;saluer les personnes qui vousentourent, participer aux fêtes et auxrituels,

• s’adapter car il ne faut jamais oublierque l’on est « chez eux »,

• s’armer de patience, patience,patience, patience, patience,patience,

• ne jamais perdre son sens de l’hu-mour,

• 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 sesexcellents côtés et ses petits incon-vénients. C’est une expérience que jevous souhaite de vivre ardemment. CIM

November 2007 | 59

Petit inconvénient de la saison des pluies

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

canadians abroad

Working abroad takes planning.Working in a mine is already

something special; working abroadin a mine can be stimulating, evenexotic, for someone who canadapt, or it can become a night-mare.

How does one prepare for suchan adventure?

While working abroad, youcome into contact with a differentlifestyle, one that makes you awareof your own lifestyle, your values,and your beliefs. Living abroadrepresents a good occasion to rede-fine yourself and to understandyour own culture much better. It isfirst and foremost a voyage to thecore of your identity. Who has notheard of cultural shock or culturaladaptation?

You leave behind a NorthAmerican world where everything istaken for granted: water (potable andhot), telephone and Internet, super-markets with an abundance of prod-ucts, etc.

I have had the occasion to livethrough various experiences: deep inthe jungle, hundreds of kilometresfrom civilization, in the bush a fewhours from a big city, and in the savan-nah, a few minutes from a village, bothin Africa and South America. I workedon rotation shifts: 30 days of work fol-lowed by 26 days at home (extraordi-nary rotation), and nine weeks of work

followed by threeweeks at home (lessinteresting).

All these places hadtheir share of exoticism… at first.

TravelOh! The joys of experiencing sev-

eral airline companies: six planes intwo and a half days to arrive at our des-tination. The incredible experience ofgoing from an Airbus 340 to a bushplane where the flight attendant sits onthe cooler. Of course, one advantage is

Tribulations of an expatriate

to accumulate many Air Miles and thusbe able to take more planes duringvacations, therefore accumulatingmore Air Miles.

Some employers will have you travelin executive or business class, allowingyou to arrive at your destination in topshape and ready to work. Others, how-ever, see no need for this and wonderwhy you are so tired when you arrive.

LodgingsIn remote mining sites, a complex is

built on site. You have your little“roomette” (with shower, TV, and nat-urally, Internet); you are just requiredto eat, sleep, and work; the rest istaken care of (housekeeping, washing,cooking).

Certain sites are near towns or vil-lages and, depending on the employer,you can have a villa with all the per-sonnel (maid, cook, gardener, etc.), ahotel room, or share a house with twoor three other people. It is up to you toread your contract carefully.

When you are there for the startupof a new mine, it is scouting, pure andsimple: tents, bivouacs, and field

kitchen, while awaiting the construc-tion of permanent installations.

ExoticismWho has not dreamt of a bush or

jungle excursion? And being paid for itto boot!

It is similar to visiting a zoo, butwhere the people are in cages and theanimals are free. You do your morningjogging alongside a cheetah, monkeyssteal your volleyball, and, from 6 p.m.on, there are strange sounds through-out the night.

You meet people who do not speakyour language but who are greatly will-ing to share, people who do not haveyour habits or methods but who wantto learn as much as to teach; peoplewho eat funny things and who thinkyou eat funny things; people who arenot in a hurry and who wonder whyyou are always in a hurry; people whoearn in a year what you earn in a day;people for whom tomorrow is tomor-row and for whom tomorrow will bejust like today, while you plan yourretirement during the course of yourfirst job.


Our home away from home

Bpar Jean-Pierre Rivard

After a while exoticism brings irri-tants that can even become madden-ing. This is the “nothing-works-in-this-forsaken-country” stage; you can evenlose your sense of humour. It is thedaily contact with the differences thatgenerates this reversal of situation. Aninsidious malaise lowers your toler-ance level.

Anything, or almost everything,can become an irritant: climate, food,insufficient sleep, physical (and gas-trointestinal) upsets, work or liferhythm, the gap between wealth andpoverty, difficulty with the local lan-guage—to speak it or to read it if inanother alphabet, waiting times,crowds, hygiene, etc. In short, toomany different experiences at a time,whatever the country. According tothe magnitude of the difficultiesencountered, this is known as cul-turel shock.

Then, with time, patience (a greatdeal of patience), and a sense ofhumour (very important, even essen-tial), the “joie de vivre” and a certainsocial ease in a foreign environmentcome back.

Key clues for working abroadWhen heading to a new position in

a different country, don’t forget the fol-lowing:• 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.

• If you do not speak the language, atleast learn a few sentences. This issimply a question of respect.

• Exchange with the local people,greet the people around you, takepart 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 ofhumour;• Be autonomous.• Keep an open mind.

At all costs avoid:• Discussing politics.• Constant comparisons withyour country (we have this, wehave that).• Expecting North Americanwork modes, rhythms, andmethods.

The life of an expatriate wasfor me a fantastic experiencewith excellent aspects and littleinconveniences. I sincerely wishthat you might have such anexperience. CIM

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

Working abroadcan be stimulating, even exotic,

or it can become a nightmare

African Savana exoticism

November 2007 | 61

The future of northern resource developmentin Canada – optimism or pessimism?

MAC economic commentary


mistic or pessimistic take on futuredevelopments.

On the positive side, there are threegeneral variables that should lend anair of optimism. First, the level of min-eral exploration spending underway innorthern Canada can best be describedas staggering. Driven by historicallyhigh global mineral price levels, com-panies will spend some $440 million inthe three northern territories on min-eral exploration and deposit appraisalin 2007, up from $160 million fiveyears earlier. Approximately one ofevery 20 dollars in mineral explorationworldwide is being spent in the threeCanadian territories. Companies areseeking potential developments in ura-nium, diamonds, gold, and other min-erals in northern Canada.

Second, the question of northernsovereignty has acquired a level ofpotency at the political level that it hasnot had in past years. The planting of aRussian flag on the polar seabed, multi-country disputes over the LomonosovRidge, Arctic expeditions by countriessuch as Denmark, and repeated ques-tioning by the US of the sovereignty ofthe northern passage are among recentdevelopments on this theme. Canadianannouncements regarding acquiringthree northern vessels and investmentin a northern deep-sea port atNanisivik, Nunavut, have added to theprofile of this issue. Other federal par-ties in Ottawa are reading the winds ofchange and aiming to develop posi-tions and policies on this front, so as tonot cede political ground to the gov-erning Conservatives. The net effect islikely to be greater federal priority andresource allocation towards northerndevelopment.

A third positive considerationrelates to the significant strides madein recent years by Canadian busi-nesses in the area of aboriginal rela-tions. Partnership agreements provid-

For a number of reasons, naturalresource development in the CanadianNorth is emerging as one of our coun-try’s most exciting economic policyissues. Climate change, the humanresources gap, high mineral prices,potential economic benefits to aborigi-nal groups, northern sovereignty, andthe efficiency of environmental reviewprocesses are among those nationalissues that are closely integrated withnorthern resources and that will influ-ence the pace of development.

The relationshipbetween natural

resources and northern developmenthas been hit and miss throughoutCanada’s history. It presently remainsvery unclear whether the necessaryarray of variables will fall into place,leading to a sustained boom in north-ern economic development, or whetherkey pieces will go missing and the fulllong-term economic potential willagain be missed. In this sense, onecould logically have either an opti-

ing the basis for mutually beneficialrelations between business and abo-riginal communities have becomecommon practice in Canada – some40 such socio-economic agreementshave been signed in recent years.These agreements, such as those seenin the diamonds sector, can bringemployment, financial equity, social,supplier, and environmental benefitsto the affected aboriginal communi-ties. This business progress is mir-rored in the Mining Association ofCanada’s Toward Sustainable Mininginitiative, where a new frameworkregarding aboriginal relations hasbeen accepted and performance meas-ures are being developed.

Among the causes for pessimism, akey impediment to sustained eco-nomic development in northernCanada remains the scope, cost, andcomplexity of infrastructure develop-ment. The construction of resourcedevelopment projects and the estab-lishment of transportation routes inthe North remains a costly undertak-ing. As one example, a Bathurst InletRoad and Port proposal has been inplay for several years as a possiblemethod of accessing and transportingresources in the northern NWT andNunavut. The economics of a numberof gold, copper, zinc, and diamondmining opportunities, among others,could conceivably be enhancedthrough the existence of such infra-structure. However, various incarna-tions of the project have been in dis-cussion with the federal governmentfor over five years and the proposedcapital construction costs of $164 mil-lion could increase significantly if theproject moves forward. It is evidentthat the local tax base of the three ter-ritories, with a total population of100,000, could not come close to sup-porting these kinds of infrastructureexpenditures, while those public funds

by Paul Stothart

MAC economic commentary

coming from Ottawa could also bediverted towards other forms of infra-structure, such as air strips anddefence/security investments.

Further infrastructure challenges arebeing seen in areas such as ice roads,where the effect of global warming isdiminishing the reliability and seasonal-ity of these routes. Diamond companiesin the Lac de Gras region of the NWT,for example, can no longer dependupon the availability of a three-monthice road to facilitate their necessary con-struction and expansion activities.

Another infrastructure-relatedobstacle relates to the fact thatCanadian governments have not beenfulfilling their fundamental role ofmapping the country and buildingmodern databases of geoscienceinformation. Annual investment inthis area has fallen by 50 per centbetween 1988 and 2007 at the federallevel and by 55 per cent at the provin-cial government level. One illustra-tive consequence of this decline isthat some 73 per cent of Nunavut isunmapped, or poorly mapped, and, atpresent investment levels, the firstfull mapping of the territory wouldnot be finished for 80 years. Businessrequires quality geoscience informa-tion in order to improve the effective-ness of its exploration spending –

governments are not doing their partin this regard.

Beyond infrastructure, a secondmain impediment to future resourcedevelopment relates to the broader abo-

riginal andresource rev-enue sharingtheme. Asnoted earlier,progress hasbeen made inthis area inrecent years.H o w e v e r ,considerableuncertaintyremains in ac o u p l er e s p e c t s .First, in

response to recent court rulings, gov-ernments have not yet provided clarityregarding how they and industryshould best accommodate aboriginalinterests. Thisquestion has beenfurther complicatedthrough recentpanel and boarddecisions that havedrawn upon theless tangible “spiri-tual value” of cer-tain geographicregions in makingrecommendationsto government. Aswell, the prevalenceof socio-economicbenefit agreementsbetween businessand aboriginalgroups has raisedan open question asto the appropriaterole of the federalgovernment insharing resourcerevenues. Thequestion of what

constitutes fair and proper sharing ofresource revenues, and whether thiswould best be delivered from the fed-eral or territorial governments, remainsfar from adequately answered by thefederal government. The existence ofunsettled land claims adds a final layerof complexity affecting the develop-ment of northern resource projects,such as the proposed MacKenzie Valleynatural gas pipeline.

If business, government, and abo-riginal groups can collectivelyaddress these main obstacles over thecoming months and years, then itseems likely that business investmentin resource development will be ableto help break the pattern of economicand social dependency on the Souththat has existed for so many decadesin Canada’s North. It will take sometime to observe the evolution of thisissue, before deciding whether oneshould be optimistic or pessimistic inthis regard. CIM

November 2007 | 63

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

The relationshipbetween natural resourcesand northern developmenthas been hit and missthroughout Canada’s history

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standards

Under NI 43-101 Standards ofDisclosure for Mineral Projects, a qual-ified person is responsible for prepar-ing or supervising the preparation ofthe technical report and providing sci-entific and technical advice in accor-dance with applicable professionalstandards. Exploration campaigns onmineral properties frequently spanmany years with differing qualities ofdata generated by multiple operators.The technical report content require-ment under Form 43-101F1 covers abroad range of subject material thatextends beyond the technical expert-ise of most engineers or geoscientists.What allowance is there for a qualifiedperson preparing a technical report toreasonably rely on others?

Section 3.2 of Companion Policy43-101CP advises that if a qualifiedperson relies on the work of a personwho is not a qualified person to pre-pare a technical report or to provideinformation or advice to the issuer, thequalified person must take responsibil-ity for that work, information, oradvice and must take whatever stepsare appropriate, in his or her profes-sional judgment, to ensure that thework, information, or advice that he orshe relies upon is sound.

Exploration dataCIM Best Practice Guidelines expect

that data acquired over multiple peri-ods and by various workersshould be verified by the

qualified person and checked prior toentry into the database. Throughoutthe process of mineral exploration, thequalified persons should ensure that aquality assurance program is in placeand that any required quality controlmeasures are implemented. Asexplained under NI 43-101, data verifi-cation must include: (a) a discussion ofquality control measures and data veri-fication procedures applied; (b) a state-

Preparing content of a technical report –reasonably relying on others

ment as to whether the qualified per-son has verified the data referred to orrelied upon; (c) a discussion of thenature of and any limitations on suchverification; and (d) the reasons forany failure to verify the data. Blindacceptance of the accuracy or com-pleteness of sampling data would notbe acceptable practice.

Mineral resource and reserve estimates

CIM Definition Standards that areincorporated by reference into NI 43-101 provide the following instructionsto qualified persons preparing mineralresource and reserve estimates: It isimportant that the Qualified Personaccepting overall responsibility for aMineral Resource and/or MineralReserve estimate and supporting docu-mentation, which has been prepared inwhole or in part by others, is satisfiedthat the other contributors are QualifiedPersons with respect to the work forwhich they are taking responsibility andthat such persons are provided adequatedocumentation.

Section 3.3 of Companion Policy43-101CP provides guidance on theinclusion in a new technical report ofmineral resource or reserve estimatesprepared by other qualified persons.When one or more qualified personsprepare a technical report thatincludes a mineral resource or mineralreserve estimate prepared by anotherqualified person for a previously filedtechnical report, one of the qualifiedpersons preparing the new technicalreport must take responsibility forthose estimates. In doing this, thatqualified person should make what-ever investigations are necessary toreasonably rely on that information.

Relying on other expertsContent requirements of a technical

report go beyond what is of a scientific

and technical nature. A qualified per-son must include information on prop-erty title, surface rights, environmentalliabilities, permitting requirements,

and discuss legal, political, marketing,socio-economic, or taxation issues ifestimates of mineral resources or min-eral reserves are included in the techni-cal report. Clearly, a qualified personmust rely on input from others for dis-cussion on this type of content.

Item 5: Reliance on Other Experts ofthe Technical Report Form allows a qual-ified person to rely on a report, opinionor statement of a legal or other expert,who is not a qualified person, for infor-mation concerning legal, environmental,political or other issues and factors rele-vant to the technical report. The qualifiedperson may include a disclaimer ofresponsibility for this type of informationon 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


by Greg Gosson

About the AuthorGreg Gossen is technical director, geology and

geostatistics, AMEC Americas Limited

standards

• the portions of the technical reportto which the disclaimer applies.It should not be considered reason-

able for a qualified person to simply relyon the issuer for information on prop-erty title, surface rights, permitsrequired, status of property agreements,royalties, back-in rights, or identifica-tion of any other encumbrances on theproperty. These really require legalopinion, which frequently existsbecause underwriters will nearly alwaysrequest one to be prepared in support ofcompany finance. The qualified personshould request written permission fromthe law firm to reference the legal opin-ion in the technical report.

An audit firm with an office in thehost country is a reasonable source oftaxation information or other govern-ment levies that production from themineral project would be subject to. Areport by an environmental firmwould be expected to support state-ments on environmental liabilities thatexist on the mineral property.

Civil liabilityQualified persons, providing a

technical report or advice that is to berelied upon by officers, directors, orunderwriters of reporting issuers injurisdictions in Canada, are subject tocivil liability under securities law.Qualified persons have a defenceagainst civil liability for a misrepre-sentation in their report or opinion aslong as they conducted a reasonableinvestigation in preparing their reportor opinion. In determining whetheran investigation was reasonable, thecourt will consider all relevant cir-cumstances, including any profes-sional standards applicable to theexpert. CIM Best Practice Guidelinesand Definition Standards for MineralResources and Mineral Reserves, andCompanion Policy 43-101CP provideguidance on industry standards whenit comes to reasonably relying oninformation provided by others. Itwould behoove qualified persons toreview these standards when relyingon others and to seek advice fromlegal counsel experienced in securi-

ties law if they are uncertain aboutwhat is reasonable.

If a qualified person is unsurewhether they should rely on someoneelse’s work, then they better be clear onwhat the downside is if the informationthey are relying on proves to have sig-

November 2007 | 65

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CommissioningContact uswww.ca.endress.com1.800.668.3199

Innovation Quality

nificant errors or omissions. Securitieslawyers cannot make decisions ontechnical information but they canexplain the legal implications to thequalified person, if there is insufficientdue diligence because of blind relianceand then something goes wrong. CIM

targets predicted just two years ago(see Prospecting the Future, 2005).

The contrast between the 2005and 2007 labour demand projec-tions emphasizes the need for timelyand accurate intelligence about rap-idly changing supply and demandconditions in the Canadian miningsector. The challenge will be to getthe right people with the right skillsat the right time, in order to meetthe demands of the sector. Withoutthis crucial information, growthmay be limited by shortages ofappropriately skilled workers.

Beginning in the fall of 2007,MiHR has launched a new initiativethat will build a national MiningIndustry Workforce Information

Network (MIWIN) to address the needfor comprehensive labour market intel-ligence, providing industry stakehold-ers with the necessary data and analy-sis to more effectively target humanresources development strategiestowards filling the gaps between supplyand demand. The MIWIN system willsupport industry employers by provid-ing more accurate and timely informa-tion about the workforce—byprovince, by region, by occupation—which will facilitate decision making.An enhanced forecasting ability willalso help to inform both public andprivate policy makers.

The initial phase of this twoyear program will focus on identi-fying labour market intelligence

The Canadian miningand minerals industry isexperiencing tremendousgrowth, following a numberof years in decline. Withglobal demand for mineralsand metals at unprece-dented levels, this mining “super-cycle” is expected to be sustained forsome time. The rebound has occurredsuddenly and with little warning and,as a result, the sector’s humanresources planning and developmentefforts in Canada have not kept pace.

Based on industry growth rates, sec-tor productivity projections, and aver-

age attrition and turnoverrates, the Mining Industry

Human Resources Council (MiHR) hasestimated that the sector will need tohire up to 10,000 new workers per yearover the next 10 years to meet antici-pated production targets (see MiningLabour Market Transition projectreport, 2007). This estimate is almost 24per cent higher than the recruitment

needs of industry stakeholders and ondocumenting the currently availabledata and analysis from national,provincial, regional, as well as privateand public sources. This will enable theMIWIN system to capitalize on thosedata which are already readily availableand to develop collection methods andanalytical tools for those that are not.

Funding has been provided throughHuman Resources and SocialDevelopment Canada to help supportthe MIWIN system, by engagingexperts who will assess and compileexisting information from secondarysources including census data,Canadian Labour Force Survey,Canadian Occupational ProjectionSystem (COPS), and others. MiHR willalso oversee the design of the instru-ments to be used for primary data col-lection (employer surveys, educational

surveys, and so on). Furthermore, pro-gram resources will be used to helpbuild the IT platform and database tosupport the MIWIN system.

To ensure that activities at thenational level are complementary toexisting initiatives at the provincial orregional levels, MiHR is also coordinat-ing this work with severalprovincial/territorial initiatives focusedon labour market information andanalysis. Efforts will be made to ensurecompatibility of the MIWIN systemwith regional models.

For more information on the MIWIN project please contact Barbara Kirby,[email protected]

CIM

HR outlook

Just how big is the labour crunch in mining? Enhancing the quality of industry’s labour market intelligence

vby Barbara Kirby

per year over the next 10 years to meet anticipated production targets

MiHR has estimated that the sector will need to

hire up to 10,000 new workers

About the Author Barbara Kirby is director, labour market intelligence and workforce development, MiHR


Since opening an office in Sudbury,Ontario, last year, SRK has wasted notime getting its feet wet in the localmining scene. George Darling, princi-pal mining engineer and office man-ager, SRK, retired from CVRD Incoprior to joining SRK. He believed SRK’sexperienced engineers and exceptionalreputation could play an integral rolein the local mines.

SRK has alliances with some ofthe biggest names in mining such asBHP Billiton, CVRD Inco, andXstrata, but it has also been knownto work with the junior companiesas well. At the Lakeshore Gold (LSG)Timmins West Mine, Darling and theSRK team recently worked on a pre-feasibility project. They realized thatpresenting a 13-chapter, 350-pagepre-feasibility study to stakeholderswould not only be time-consuming,but might also induce sudden-onsetsleeping sickness to their audiencemembers. With positive results inmind, SRK utilized Mine 24-d topresent a 3D picture of the mine overa time period. The presentation wasclear, precise, visually interesting,and very well received by the stake-holders.

Over at the Copper Cliff Deep site,CRVD Inco has brought together agroup that is a true example of sym-biosis in action. The group consists ofthree to four CVRD Inco membersand several engineers from differentcompanies. Darling applauds this

partnership. “In a timeof stretched resources,

it’s interesting to find excellence in avariety of places and bring them alltogether, like a patchwork quilt, towork on a project with the same goalin mind.”

There are two mines at the CopperCliff Deep site, located four kilometresapart. An important ore body has beenlocated deep underground between thetwo mines and the CRVD Inco team isbusy designing a new shaft to access

Breaking ground in Eastern Canada

the ore body and integrate the twoexisting mines.

The mining industry is constantlyjuggling how to be cost-effective whileensuring a safe work environment.This was recently exemplified at DeBeers Canada’s Victor Mine, Ontario’sfirst diamond mine. Naturally, whileexcavating the overburden to reachthe Victor kimberlite pipe, the steeperthe slope, the more cost-effective itwill be. As always, good ‘ole MotherNature is the determining factor. Theangle of the walls is dependant on thestability of the stuff it’s made of as wellas erosion and the gravitational forcepulling it down to the centre of theearth. An SRK Geotech team designeda “trial pit” to test what angles the pitwalls would hold. With 35 degreesoptimal, and 15 degrees at bit expen-sive to say the least, the SRK teaminstalled instrumentations to monitor,evaluate, and come up with a recom-mendation for a safe and optimumoverburden pit wall angle.

The SRK office in Sudbury startedwith two people and in the last year hasgrown to nine. This is a tiny office byanyone’s standards but the Sudburyteam is confident in taking on any proj-

ect within its realm. This is possiblebecause SRK offices anywhere in theworld can access the expertise of otherengineers in their sister offices. SamGauvreau, a recent member of theSudbury team, is pleased and enthusi-astic about his decision to join SRK.“We work just down the street, but thenext day we might have the opportu-nity to work in South Africa or CentralAmerica with world renowned geolo-gists and geochemists.”

Of course, even the most efficientlyrun office can have the odd glitch. Ona recent trip to Timmins for a miningconference, Darling and a co-workerwere booked (by a well-intentionedoffice assistant) in a hotel that hadrecently been torn down! Not to worry,with the help of some locals with goodconnections, they found place to laytheir weary heads.

They’ve only been here for one year,but with skill and determination, theSRK Sudbury office has found a securefoothold in Ontario. What next?Perhaps SRK will venture into Quebec,or maybe even the Maritimes, makingthem truly national engineering con-sultants, solving mining problems fromcoast to coast. CIM

Bell Creek mill and mine in Timmins

engineering exchange

November 2007 | 67

by Haidee Weldon

eye on business

As a result of the sustainedglobal boom in the miningindustry, a considerable num-

ber of companies are now contemplat-ing the development and constructionof mining projects. Regardless of thetype of mineral to be mined, thisinevitably leads to consideration ofthe appropriate method of projectdelivery.

Traditionally, a common and oftenpreferred method of project deliverywas the turnkey or the engineer pro-cure and construct contract, com-monly known as the EPC contract(an EPC). Under this method, thecontractor agreed to engineer, pro-cure all required plant equipment,

construct, andc o m m i s s i o nthe project.

The principal advantage of an EPCwas that the contractor agreed todeliver the project in accordancewith an agreed schedule and often bya guaranteed completion date, for anagreed price and with guarantees thatthe project would attain specifiedlevels of production upon being com-missioned. An EPC provides a signif-icant level of certainty for the projectowner and its bankers with respect to

Current trends in project delivery

both the delivery of theproject, as the risk relat-ing to cost, schedule, andperformance of the proj-ect was borne substan-tially by the contractor,and for performance ofthe project, as the con-tractor had to deliver aproject that was fullyoperational and compli-ant with the specifica-tions of the owner, andany defector defaultin the proj-

ect being the contrac-tor’s responsibility,except where an EPCprovided otherwise.

Given the currentdemand for materials,labour, and construc-tional plant andequipment, and thefact that long leaditems have deliverytimes commonlyexceeding 18 months,it is now difficult forcontractors develop-ing projects in themining industry tocontrol the risk relat-ing to project con-struction, particularly risk relatingto cost and schedule. There are nowfew contractors in the present mar-ket willing to deliver a mining proj-ect under an EPC, and those contrac-tors who are include a significantpremium in the contract price.

Most project owners have nowbeen required to utilize differentmethods of project delivery, whichhave invariably involved theirassumption of significantly greater

risk. The method of delivery nowmost commonly being used withrespect to mining projects (particu-larly by owners of significant scaleand balance sheet strength) is theengineering, procurement, and con-struction management contract, morecommonly known as the EPCM con-tract (an EPCM). Under an EPCM, thecontractor, usually an engineeringfirm, is largely responsible for design,procurement, and construction man-agement of the construction of the

project, with the latter two functionsbeing performed by the contractorlargely as the agent of the owner. Theowner, either itself or through thecontractor acting as its agent, engagesand pays all suppliers, vendors, andcontractors who supply plant andequipment, or construct the projectaccording to the design of the EPCMcontractor. Though the contractor islargely responsible for design, pro-curement, and construction manage-


by Andrew Gabrielson

About the Author Andrew Gabrielson works for Fasken Martineau DuMoulin LLP

Most project owners have now been

required to utilize different methods

of project delivery, which have invariably

involved their assumption of

significantly greater risk

ment under an EPCM, risk (particularly in relation to engi-neering and capital cost, schedule, and performance) islargely borne by the owner. This requires the owner tohave adequate financial reserves available to meet projectrisk and contingencies. In the present market, significantcost and schedule delays under an EPCM are not uncom-mon and can be spectacular.

Despite exposure to greater owner risk, an EPCM is notwithout its advantages. Commonly an EPCM will permitearlier commencement of the project as, unlike an EPC,final project design is not required in order to facilitateproject pricing or commencement. Given the greater levelof risk being assumed by the owner, an EPCM, by its terms,usually conveys on the owner significantly greater flexibil-ity and control, particularly over design, procurement,scheduling, and progress of the project. This often leads tomore efficient pricing and a lower price. In addition, anycost savings obtained through value engineering orimprovements in design are to the account of the owner.Most EPCM contractors of any substance can be motivatedby a combination of incentives and penalties to bring theproject in on time, on budget, and with the required level ofperformance.

The principal disadvantage of an EPCM is the substantialtransfer of project risk to the owner. Most EPCM contrac-tors are, in respect of liability arising under an EPCM,unwilling to put at risk anything greater than the profitobtained 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 principalremedy of the owner against the contractor being confinedto the reperformance of any defective engineering services.While, EPCM contractors will often accept penalties in con-nection with cost, schedule, and performance, such penal-ties are of a limited amount and usually will not make anyimpact on defraying any significant loss suffered by anowner, if the contractor fails to deliver the project on timeand within budget. Furthermore, it can be difficult to deter-mine and allocate liability, as there is no single point ofresponsibility for performance of the project and the ownerfaces the unenviable task of determining which of its mul-tiple contractors is responsible for any lack of performanceof the project. In short, if the owner’s expectations for theproject, as expressed in an EPCM, are not met, its remediesare limited.

Finally, a project of any size will result in the EPCM con-tractor committing a considerable number of its personnelto the project. This requires that the owner have sufficientin-house engineering resources to supervise and managethe contractor’s usually voluminous demands for input,approvals, and information. While this is not usually anissue for major companies, smaller companies lacking suchresources can cause project delays and frustration for theEPCM contractor, which ultimately has negative effects ondelivery of the project. CIM

November 2007 | 69

General Manager- Executive Leadership Role - New Uranium Operation

The company is seeking to appoint a General Manager for the KayelekeraUranium Mine, to provide executive management and leadership for thedevelopment and operation of the mine. You will need to draw upon yourmining related qualifications and extensive, senior level, industry experience tosuccessfully implement the operation on time, schedule and budget, and thenensure the operations achieve budgeted costs and production while continuallystriving to improve operating parameters. Responsible to the Executive GeneralManager – Operations Development, it is essential that you have experience inuranium processing and/or mining. Developing country experience would bean advantage. The role will be offered as residential or FIFO, however you willbe 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 OpportunitiesThe 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 - Engineering Manager - Environmental Manager - Senior Production Controller

- Manager Metallurgy - Chief Chemist - Processing Superintendent - 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 [email protected]

For initial enquiries or any assistance you require in making your application please contact Vic Bullo or Nathan Hunter on +61 8 9323 8888.

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 theworld. The Company is listed on the Australian Stock Exchange and additionallistings on the Toronto Stock Exchange in Canada. In 2007 the Langer HeinrichUranium Mine in Namibia came into operation and achieved first production.In Malawi, construction of the Kayelekera Uranium Mine commenced andproduction 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 ConvertibleBond issue in November 2006 has enabled the Company to move forward in awell funded manner. Paladin remains confident of the positive outlook for thenuclear industry. Its strategy to establish progressive development of uraniummines and, via M&A activity, achieve a global footprint.

PALADIN RESOURCES LTD

The industry’s abuzz with activity.With today’s high uranium prices, jun-ior exploration companies are feverishlysearching for new deposits as well asrevisiting old mine sites across thecountry. One such place being re-exam-ined is the area surrounding UraniumCity, which once was a thriving commu-nity that serviced the many mine sitesaround it.

There’s no denying it, Canada is abeautiful country, and the pristine waterof Lake Athabasca is a perfect example.Throughout the 19th century, the areasurrounding the lake was mainly usedfor trapping and prospecting. However,in 1935, uranium ore was discovered inthe Beaverlodge area of northernSaskatchewan.

A new industry emergesDuring World War II, the Canadian

government banned private explorationof radioactive minerals and expropriatedEldorado Mine from C.E. St Paul andG.A. LaBine. Newly renamed CrownCorporation Eldorado Nuclear, the com-pany’s exploration programs eventuallyled to the development of the Ace, Fay,and Verna mines. Within a few years theban was lifted and a staking rush ensued.

By the end of the 1940s to early1950s, close to twodozen uraniummines were in opera-

tion in Canada—one of the biggestlocated in northern Saskatchewan. The‘tent cities’ that were popping uparound the mines in Saskatchewan didnot please the provincial governmentand, as such, in 1952, construction ona new town, one that would service allthe surrounding areas, commenced.Uranium City was born.

Located 50 kilometres south of theSaskatchewan–Northwest Territories

border on the northern shore of LakeAthabasca, Uranium City was a townplanned for 5,000 that was modelled onthe company town of Arvida, Quebec.Within four years, Uranium City hadbecome the fastest growing city inSaskatchewan complete with electricityand a sewer system. It had a localadministrator, mine recorder, twostores, a garage, restaurant, a 60-personschool, liquor store, and hospital. A portwas also built nearby atBlack Bay.

Between the mid-1950sand 1960s, three mills, oneeach at Eldorado, Gunnar,and Lorado, as well as adozen uranium mines werein operation in theBeaverlodge area. However,by 1964, only the mill atEldorado remained in operation and wasthe only one left producing uranium inSaskatchewan. By 1959, the population ofUranium City was about 4,600, with anadditional 3,000 or so in the miningtowns of Eldorado and Gunnar a fewkilometres away.

A fluctuating marketUranium City’s fate was to be deter-

mined by the demand for the metal. Inthe midst of the mine closures of the early60s in the Beaverlodge area, UraniumCity suffered and the population dwin-dled. It sprang back to life in 1967 and1968 when the demand for uranium wasup. Despite cutbacks in 1969 and almostshutting down two years later, Eldoradobegan expanding its operations in north-ern Saskatchewan as the uranium marketwas performing well. The company set uptraining programs for employees whowished to get ahead in their career. By1980, about 10 per cent of Eldoradoemployees were native.

In the early 1980s the price of ura-nium dropped to US$19 per pound. InJune 1982, Eldorado shut down itsBeaverlodge operations, whichemployed an average of 575 workers peryear over its 30-year existence. UraniumCity subsequently dropped to a merecouple hundred residents and the water-works and sewer system were shut offeverywhere except for the city’s core andon Hospital Hill.

The city’s prospectsAmidst all the claims staked in

Saskatchewan between 1953 and 1981,16 mines entered production. Eldorado’sAce, Fay, and Verna mines producedover 40 million pounds of uranium com-bined. The company’s Beaverlodge oper-ation is the first uranium site in Canadato have a planned decommissioningwith regulatory approval. As well, acomprehensive study on the rehabilita-tion of the former Gunnar minesitebegan last summer, an effort of theCanadian Nuclear Safety Commissionand Natural Resources Canada.

In 2003, the hospital shut down.Today, about 100 people call UraniumCity home and the only access is by thewinter road or by air. The normallypeaceful city has seen an increase inactivity lately with the renewed explo-ration efforts taking place in northernSaskatchewan. What will the next phasein the city’s history entail? Only timewill tell. CIM


What does the future hold for Uranium City?

by Andrea Nichiporuk

Did you know? Uranium City wasthe birthplace of two Canadian celebrities:

Gina Kingsbury, gold medalist, women’s Canadianice hockey team, 2006 Winter Olympics

Gilbert A. LaBine, Canada’s “Mr. Uranium,”Canadian Mining Hall of Fame inductee

cim newsAbrak, Amin, MorrocoAddie, Gordon,

British ColumbiaAdemeso, Kayode, NigeriaAmos, Collette, AustraliaArho, Jokpogho, NigeriaAustin, Kevin, AustraliaAxford, Eric, AlbertaBagnall, Alex, AlbertaBartlett, Carol,

Newfoundland/LabradorBecker, Markus, GermanyBeier, Nicholas, AlbertaBonsu, Kwaku Anthony,

Ivory CoastBouliane, Natasha, AlbertaBoyd, Larry, AlbertaBradbury, Keith,

Newfoundland/LabradorBrosseau, Sean, AlbertaBruhjell, Darren,

British ColumbiaBuchanan, Ron, ManitobaButler, Roland,

Newfoundland/LabradorCalder, Pat, ManitobaCaldwell, Jack A.,

British ColumbiaCapstick, David, OntarioCarlisle, Scott, OntarioCeh, Anthony,

British ColumbiaChampaigne, Denis, OntarioClark, David,

British ColumbiaClarke, David, AlbertaCollins, Peter, AustraliaComeau, Jeanne,

New BrunswickConnors, David, OntarioCooney, Thomas Gregory,

Australia

Cooper, Jay, ManitobaCoward, Stephen,

United KingdomCurtis, Alan, USADa Silva, Fernando, PeruDaly, Mohamed, TunisiaDarling, Michelle, AlbertaDavis, John, New BrunswickDeans, Ty, British ColumbiaDeck, Steven, OntarioDembele, Yahaya,

Ivory CoastDombek, Jerome, USADoney, Doug,

New BrunswickDouglas, Ian, USADu Preez, Niel, South AfricaDuxbury, Patrick Henton,

Northwest TerritoriesEricsson, Patrik, SwedenAdaba Eucharia, Georgewill,

NigeriaEvanochko, Don, AlbertaEwefunso, Akintunde,

NigeriaFarrell, James,

Newfoundland/LabradorFirth, Andrew Robert,

AustraliaFisscher, Harry, NetherlandsFreeman, Sean, USAGage, Shaun,

Newfoundland/LabradorGagnon, Rob, OntarioGall, Chris, AlbertaGauthier, Alana, ManitobaGear, Diane,

Newfoundland/LabradorGillis, Jim, Nova ScotiaGillstrom, Gregory,

British Columbia

Glass, Tony, British Columbia

Gogowich, Randy, AlbertaGradim, Rafael, VenezuelaGriebel, Ernst, AustraliaGriffiths, Craig, SwedenGuibulacho, Kirondina,

MozambiqueGupta, Manuj, AlbertaHandley, Matthew,

South AfricaHarrison, Don,

British ColumbiaHolden, Grenn, AlbertaHood, Michael, AustraliaHunt, Gavin,

United KingdomHyska, Elliott, ManitobaIsles, Dudley, AustraliaJastrebski, Jay, AlbertaKachurowski, Amy, AlbertaKahlert, Daniel,

British ColumbiaKelly, Mark, AustraliaKennedy, Scott, OntarioKerr, Andrew,

Newfoundland/LabradorKillam, Luke, AlbertaKivari, Dan, OntarioKoney, Sulemanu, GhanaKoskinen, Jarkko, FinlandKovacs, Anthony,

British ColumbiaKow, Weng, USAKruger, Fritz, AlbertaLacerte, Roger, Burkina FasoLavender, Theresa, AlbertaLawrence, Brian, AlbertaLee, Dan,

Newfoundland/LabradorLeung, Albert,

British Columbia

Liebe, Markus, AlbertaLiske, Calvin, ManitobaLubbe, Rian, South AfricaLucas, Stephen, OntarioLundstrom, Mari, FinlandLysay, Georgia,

British ColumbiaMacLachlan, Malcolm,

British ColumbiaMagdic, Ivan, AlbertaMakus, Lyle, AlbertaMatthews, Dick,

British ColumbiaMcCoy, Tannice,

British ColumbiaMcDermid, Gordon, OntarioMcElman, Chris,

British ColumbiaMcIntire, Hal, USAMcKay, Dawn, OntarioMcMullin, John, Nova ScotiaMir, Sabeen, PakistanMonrad, Eric David,

British ColumbiaMorrison, David, AustraliaMuneer, Naseer, AlbertaMurr, Dennis L., USANabil, Ben Jannet, TunisieNakatsuka, Caroline,

British ColumbiaNeilsen, Larry, AustraliaNewel, Ken, AlbertaNg, Shindy,

British ColumbiaNicholas, Grant,

United KingdomNoer, Michelle, AlbertaNorman, Krista,

Newfoundland/LabradorNurminen, Elli, FinlandOlukoye, Babatunde O.,

SwedenOsehob, Emela Rapheal,

NigeriaOsmond, Chad, AlbertaPang, Gabrielle,

British ColumbiaParé, Pascal,

British ColumbiaPascoe, Christopher, USAPaulin, Jean Guy,

New BrunswickPayeur, Sylvain, OntarioPeerless, Sarah,

British ColumbiaPoirier, Nathalie,

New BrunswickPotvin, Gerry, OntarioProctor, Paul, Nova ScotiaRabb, Trevor, AlbertaRayani, Karim,

British ColumbiaReeleder, Rob,

British ColumbiaReggin, Lara,

British ColumbiaReid, Genice,

Newfoundland/Labrador

Riggle, Robert, AlbertaRoche, Colleen,

British ColumbiaRose, Dave, Nova ScotiaSalghi, Abdelkrim, MorrocoSchimmel, Ronald,

NetherlandsScott, Nikki,

British ColumbiaScott, Roxanne,

British ColumbiaSellami, Mohamed, MorrocoSeymour, Carol,

Newfoundland/LabradorShearing, Lorne, AlbertaShectman, Parker,

British ColumbiaShefford, David, ManitobaShephard, John,

British ColumbiaShipp, Jerry, USAShvyd’ko, Petro, UkraineSimoneau, Barrie, ManitobaSmears, Monica, AlbertaSmiley, Dustin,

British ColumbiaSte-Croix, Stephane,

New BrunswickSteele, Rod, AlbertaStouros, Sam, OntarioStruck, Wilf,

British ColumbiaStrueby, Brad, AlbertaSzpak, Joseph, AlbertaTadolini, Stephen, USAThiel, Rick, AlbertaThompson, Randall, USATodd, Scott, AustraliaTrosko, Val, AlbertaTruscott, David, OntarioUtley, Jim,

British ColumbiaVan Alphen, Peter Pascal,

OntarioVance, Matthew, AlbertaVerreault, Martin,

New BrunswickVillaescusa, Ernesto, OntarioWaddington, Mike, AlbertaWang, Bing,

British ColumbiaWearing, Grant, AlbertaWendell, Daniel, ManitobaYanske, Thomas, USAYim, Gil Jae, KoreaYoung, Lori, USAZiemski, Marcin, Australia

CorporateDelkor Services

CIM welcomes new members

A look back in time35 YEARS AGO…• There was much activity at the branch

level—scholarships were handed out,branch executives were appointed orin the process of being nominated, andguest lecturers spoke to branch mem-bers about revegetation of tailings andmeteorite recovery.

• If you were in the market for grindingballs or billets, this ad most likelycaught your attention.

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

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

November 2007 | 71

cim news

In August, the CIM Management andEconomics Society hosted a one-dayseminar for senior officials of theChinese Ministry of Lands andResources. The senior officials were on atraining program in Canada, throughthe auspices of Queen’s University, andhad training stints in Kingston, Ottawa,Vancouver, and Toronto.

In Toronto, Fasken MartineauDuMoulin sponsored the event, withKeith Spence, MES Chairman, and

CIM MES hosts senior Chinese mining officials

Christina Wilton and Wei Wei as eventco-organizers.

The program included a TorontoStock Exchange visit and the followingpresentations: A perspective on therisks and issues when investing inmining projects in China (G. HoYuen, Fasken Martineau); Basics ofevaluation and valuation of miningprojects using options (M. Samis,AMEC); How a company does metaloutlook (A. Roebuck, Teck Cominco);

Disclosure and market regulations forthe Canadian mining sector (D.McCombe, Scott Wilson RoscoePostle); and How banks analyze risksin financing mining projects (W.McNeil, Scotia Bank/Scotia Capital).

The event was part of MES’s strat-egy to become a key source for contin-uing education in the mining sector, inthe areas of mineral economics, min-ing management issues, and minefinancing. CIM

Chinese senior mining officials along with presenters and MES executive

ObituariesCIM expresses its sincere condolences to the families and friends of the following members:

Gerald Laverne Colborne died on July27, 2007. He joined CIM in 1967 andbecame a life member 1989.

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

Gordon Alfsen Griffiths died this pastAugust. He graduated from the miningfaculty of the University of Toronto in 1951.

Rory Malcolm Francis Kempsterpassed away on September 11, 2007.An active member of the CIM New

Brunswick Branch, he served as thebranch’s chair in 2001-2002, has beeninstrumental in documenting thebranch’s history, has been involved inthe branch’s educational projects, andmost recently, served as the branch’ssecretary.

David Landriault died this pastAugust. He joined CIM in 1995 andwas a member of the CIM SudburyBranch. More recently, he served on theorganizing committee of the 9thInternational Symposium on Miningwith Backfill.

Kenneth E. Mathews passed away. Hejoined CIM in 1974 and became a lifemember in 2001.

Thomas H. Patching joined CIM in1937. In 1971-1972, he served as pres-ident of the Institute and in 1979, hebecame a life member. He received theCoal Award in 1985 and a CIMFellowship in 2000.

William Gordon Wegenast passedaway on June 12, 2007. He joined CIMin 1960 and became a life member in 1987.


The Quebec Branch’s “Geogolf” tournament, held onSeptember 7 at the Lac St-Joseph Golf Club, attracted 47 par-ticipants and plenty of sun. Organized with the help of GillesMahoney, the tournament received generous donations fromthe Quebec Mining Association, the Lac St-Joseph Golf Club,Forages Chibougamau Ltée, Gestion Sodémex inc., JeffreyMine Inc., Belle-Isle traduction technique inc., les traduc-tions techniques Blais et Leroux, CIM National, and the CIMQuebec Branch. The winning team included JacquesBonneau and Paul Archer of Mines d’Or Virginia, YvonTrudeau of SOQUEM, and Steve Larouche of ForagesChibougamau.

Tournoi Géogolf 2007Le 7 septembre 2007 avait lieu le tournoi Géogolf au

Club de golf du lac St-Joseph. La section Québec de l’ICMen assurait l’organisation avec l’aide d’un bénévole, M.Gilles Mahoney, retraité du ministère des RessourcesNaturelles et de la Faune. Celui-ci a su trouver de généreuxdonateurs : Association minière du Québec inc, Club deGolf du Lac St-Joseph inc., Forages Chibougamau Ltée,Gestion Sodémex inc., Mine Jeffrey inc., Belle-Isle traduc-tion technique inc., les traductions techniques Blais etLeroux, ICM national et la section Québec de l’ICM.L’équipe gagnante était composée de Jacques Bonneau, PaulArcher de Mines d’Or Virginia, Yvon Trudeau de SOQUEMinc. et Steve Larouche de Forages Chibougamau. Tous les47 participants ont apprécié le temps exceptionnellementchaud cette année et la beauté du site. CIM

CIM

November 2007 | 73

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Av ESTUDIOS.indd 1 30/8/07 12:12:16

Quebec Branch golftournament a huge success

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

Learn more from Dave Lentz's presentation…contact [email protected] book him for your branch today!

FCMMCMMF

Canadian Mining and Metallurgical Foundation

Fondation canadienne des mines et de la métallurgie

FCMMCMMF

Canadian Mining and Metallurgical Foundation

Fondation canadienne des mines et de la métallurgi

e

2 Colour:Logo = Pantone 3025Text = Black

3M CanadaAir LiquideAuburn GroupBuehler Canada Inc.CESLCIMCorroco International

Industrial Co. Ltd.Decisioneering Inc.Desert King Intl.EcoTec Inc.Falcon FoundryGecamin Ltd.HatchHeath & SherwoodIBC Advanced

TechnologiesIMP Group Pty Ltd.Jogmec

Larox CorporationLimpact International McGill UniversityMetalex GmbHMettopOutotec (Canada) Ltd.P.I. InternationalPraxair Canada Inc.Quadra ChemicalsRHI-AGRomquest TechnologiesSGS Minerals ServicesTechnologias Cobra S.A.TMSUniversité LavalVulcan RefractoriesWorleyParsons CanadaXstrata Technology

Thank you to our exhibitors for their participation

Premium

Corporate

Event

CIM Distinguished Lecturers

One of this year's CIM Distinguished Lecturers, DaveLentz, 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 golddeposit model: insights from R&D for exploration success. Don'thesitate—ensure he comes to your hometown this year.

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

CIM You're well-known in the Canadianminerals industry. What is your back-ground experience?

Lentz I have been lucky to haveworked for the mineral explorationindustry, the Mineral ResourcesDivision of the Geological Survey ofCanada, as mineral deposits geolo-gist for the New BrunswickGeological Survey, and as an aca-demic here at UNB since 2000 withstudent-based research projects inmost provinces and territories ofCanada.

CIM What attracted you to becoming a CIM DistinguishedLecturer?

Lentz My Distinguished Lecturer presentation highlights theresearch developments in gold deposits, especially inCanada, and how exploration success can continue to beenhanced by collaborative NSERC- and/or industry-sup-ported R&D. It is a chance for me to wave the flag about theincreasing importance of continued professional develop-ment and the derivative cooperative research that resultsfrom the mutual recognition of how each geoscience groupsupports each other. CIM is all about professional develop-ment, related networking, and friendship.

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

Lentz Targeted appied or fundamental research tends to distillthe complexities of a system down to essential componentsthat are important to understanding a system in detail and thenutilizing that simplified knowledge to explore more effectivelyand efficiently. In this presentation, this is applied to gold-forming systems, but is true for all types of knowledge.

Sponsored by:

Thank you!We would like to thank our sponsors

for their valuable contributions

CIM EVENTS

Northern Gateway Branch Meeting–LectureJim Gowans, president and CEO, De Beers Canada (guestspeaker)December 11North Bay, OntarioContact: Roy SlackTel.: 705.472.3381Fax: 705.497.0078Email: [email protected]

Calgary Branch Technical MeetingDecember 12Calgary, AlbertaContact: Andrew HickinbothamTel.: 403.267.3891Email: [email protected]

Canadian Mining Hall of Fame Twentieth AnnualInduction Ceremonyin conjunction with CIM and PDACJanuary 17, 2008Toronto, OntarioContact: Donald WorthEmail: [email protected]: www.mining.ca/halloffame

Sudbury Branch General Membership MeetingJanuary 17, 2008Sudbury, OntarioContact: George DarlingTel.: 705.682.3270Email: [email protected]

CMP Conference40th Annual Canadian Mineral Processors Operators’Conference/40e Conférence des minéralurgistes du CanadaJanuary 22-24, 2008Ottawa, OntarioContact: Janice Zinck Tel.: 613.995.4221Fax: 613.996.9041Email: [email protected]: www.c-m-p.on.ca

MEMOMaintenence Engineering-Mine Operators’ Conference/Colloque sur l’ingénierie de maintenance et les exploitationsminièresFebruary 24-28, 2008Val-d’Or, QuébecContact: Chantal Murphy, CIMTel.: 514.939.2710, ext. 1309Fax: 514.939.2714Email: [email protected]

CIM Conference and Exhibition—Edmonton 2008May 4-7, 2008Edmonton, AlbertaContact: Chantal Murphy, CIMTel.: 514.939.2710, ext. 1309Fax: 514.939.2714Email: [email protected]

AROUND THE WORLD

American Mining Hall of Fame BanquetDecember 1Tucson, ArizonaContact: Jean Austin, office managerTel.: 520.577.7519Fax: 520.577.7073Email: [email protected]

CIRMA1December 2-4Algiers, AlgeriaContact: Sarah AshmoreTel.: +44.207.596.5053 Fax: +44.207.596.5106Email: [email protected]: www.cirma-algeria.com

SWEMP2007December 11-13Bangkok, Thailand Contact: Raj Singhal, symposium chairTel.: 403.239.3849/403.461.2981Fax: 403.241.9460Email: [email protected]: www.mpes-cami-swemp.com

2008 SME Annual Meeting and ExhibitFebruary 24-27, 2008Salt Lake City, UtahContact: Kathy O'NeilToll-free: 800.763.3132Fax: 303.979.3461Email: [email protected]: www.smenet.org/meetings

PDAC 2008March 2-5, 2008Toronto, OntarioContact: Lisa McDougallTel.: 416.362.1969Fax: 416.362.0101Email: [email protected]: www.pdac.ca

First International Seminar on the Management ofRock Dumps, Stockpiles, and Heap Leach PadsMarch 5-7, 2008Perth, Western AustraliaContact: Josephine Ruddle, marketing managerTel.: +61.8.6488.3300Fax: +61.8.6488.1130Email: [email protected]

Minerals NorthApril 16-18, 2008Smithers, British ColumbiaContact: Christine OgryzloTel.: 250.697.6368Fax: 250.847.1601Email: [email protected]: www.mineralsnorth.ca

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November 2007 | 75

ProvisionalSocial ProgramTuesday, January 22Beer and Sandwich SocialHockey Cup ChallengeChairman’s Reception

Wednesday, January 23Annual Business MeetingReceptionAnnual Banquet

Photo courtesy of Ottawa Tourism

November 2007 | 77

Annual

On behalf of the executive committee, I invite you to attend the 40thAnnual Canadian Mineral Processors Operators’ Conference. Thisyear is the 40th anniversary of the formation of the Canadian

Mineral Processors and it is worth reflecting on the birth of the organization. TheCanadian Mineral Processors started as a meeting for gold mill superintendentsand metallurgists to share information between operating plants. No doubt thesemeetings were convened to try and squeeze every last ounce of efficiency out ofthe mills they represented. The price of gold through the period of formation ofthe group was still pegged at $35 per ounce, and the profitability at the mineswas very dependent on innovation.

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

Human resources continue to be a major focus for our industry as we grapplewith the unprecedented need for skilled practitioners. Many of you are aware ofthe 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 insti-tutions with mineral processing programs will be brought to the annual confer-ence. This will be your opportunity to meet these students, most of whom willeventually be our next generation of industry leaders.

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

So, pack your skates and enjoy the world-famous Rideau Canal, cheer for yourfavourite CMP hockey team, network with fellow professionals, and join us for the40th Annual Canadian Mineral Processors Operators’ Conference.

See you there,

JOHN FOLINSBEE2008 CMP CHAIRMAN

ConferenceOperators’ProcessorsMineralCanadian

40th

Celebrating 40 years!


40 ans, ça se fête !

40e annuelleConférencedes minéralurgistes

du CanadaAu 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 ren-

contre des superintendants et métallurgistes des concentrateurs d’or afin de partager l’informa-

tion entre les usines. Il n’y a aucun doute que l’objectif de ces rencontres était d’essayer d’ex-

traire 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 réu-nissent aussi les professionnels du traitement des minerais de tous les domaines de l’industrieminière. Chaque année, les procédés aurifères attirent encore une atten-tion particulière dans le programme technique, mais des articles sur lesmétaux de base, les sables bitumineux et l’industrie des minéraux serontaussi probablement au programme dans des proportions semblables.Cette année, le programme inclut environ 40 présentations techniquescouvrant des sujets reliés au broyage, à la flottation, aux procédésaurifères et au contrôle des procédés. Le programme technique de cetteannée continue sa tradition d’excellence qui représente bien la con-férence des Minéralurgistes du Canada. Veuillez visiter notre site Webpour des mises à jour concernant la conférence (www.c-m-p.on.ca).

Les ressources humaines continuent d’être un enjeu majeur dans notreindustrie puisqu’elle doit faire face à un manque sans précédent de main-d’œuvre qualifiée. Plusieurs d’entre vous sont conscients que le pro-gramme étudiant fait partie intégrante de notre conférence annuelle.Cette année, avec le support de commanditaires, 20 étudiants provenantdes principales institutions d’enseignement offrant des programmesminiers participeront à la conférence à Ottawa. Ainsi, vous pourrez ren-contrer les étudiants, qui pour la plupart, deviendront éventuellement laprochaine génération de dirigeants dans notre industrie.

La conférence annuelle des Minéralurgistes du Canada est l’une des pre-mières opportunités de réseautage de l’année avec vos collègues et vouspermettra de découvrir les nouvelles tendances dans notre industrie. Aufil des ans, il m’a été possible d’approfondir mes connaissances lors desprésentations techniques et des rencontres informelles avec mes col-lègues. S’il y a un événement cette année que vous ne devriez pas man-quer, c’est celui-ci.

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

Au plaisir de vous rencontrer,

JOHN FOLINSBEEPRÉSIDENT CMP 2008

RenseignementsgénérauxLa 40e Conférence annuelle des minéralurgistesdu Canada se tiendra dans la salle de balConfédération à l’Hôtel Westin du 22 au 24 jan-vier 2008. La conférence comprendra desprésentations sur divers aspects desminéralurgiques tels que la conception desinstallations et amélioration des usines, broy-age, déshydratation, instruments de flottation,contrôle des procédés, séparation des minérauxet de l’or.

AuteursTous les auteurs, présidents de session etreprésentants régionaux doivent s’inscrirecomme délégués. Un petit déjeuner sera servile jour de leur présentation à 7h dans le SalonQuébec (à confirmer). Les auteurs peuvent con-tacter Al Kuiper au 613.992.8147 ou par courrielà [email protected] pour plus d’informationsur les présentations.

General InformationThe 40th Annual Canadian Mineral ProcessorsOperators’ Conference will be held in theConfederation Ballrooms at the Westin Hotel inOttawa on January 22–24, 2008. The confer-ence will feature presentations on variousaspects of mineral processing, including plantdesign and plant improvements, grinding,dewatering, flotation instrumentation andprocess control, mineral separation and gold.

The Ottawa River. Photo courtesy City of Ottawa

Winterlude. Photo courtesy City of Ottawa

November 2007 | 79

AccommodationsSpecial rates of $175 (single/double occupancy) and $205 (deluxe accommo-dations) have been negotiated for a block of rooms at the Westin Hotel (ref-erence 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 ofrooms is only guaranteed until January 2, 2008, so book your room early.

RegistrationThe fees for this year’s conference are $425 for CIM/AIME/TMS members,$100 for CIM retired members (60+), and $575 for non-members (GSTincluded). 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 Wednesdayevening reception/dinner, as well as a copy of the proceedings. Registrationcan be done online at www.c-m-p.on.ca. Be sure to indicate which socialevents you want to attend.

Pre-registered delegates can obtain their registration kits at the conferenceregistration desk, located on the 4th floor of the Westin Hotel, Monday eveningbetween 7 p.m. and 10 p.m. and on Tuesday to Thursday between 7 a.m. and3 p.m. New registrations will be taken during these times.

NNoottee:: Registration forms must be received by January 15, 2008. After thisdate, delegates will have to register at the conference. Requests for refundsmust be made, in writing, prior to January 15, 2008. An administration fee of$100.00 will be charged for late and/or cancelled registrations.

AuthorsAuthors, session chairs, and regional representatives must register as con-ference delegates. A speaker’s breakfast will be provided the day of theirpresentation at 7 a.m. tentatively held in the Quebec Room. For informa-tion contact Al Kuiper, Tel.: 613.992.8147, Email: [email protected].

HébergementUn nombre limité de chambres a été négocié avec l’Hôtel Westin au tarif de175 $ en occupation simple/double et 205 $ pour une chambre de luxe.Veuillez noter que les chambres sont retenues jusqu’au 2 janvier 2008. L’andernier, ce groupe de chambres a été épuisé dès décembre. Veuillez doncréserver votre chambre le plus tôt possible. Les réservations peuvent êtrefaites directement avec l’Hôtel Westin au 613.560.7000 ou par télécopieur au613.560.2707 ou à www.c-m-p.on.ca. Si vous réservez par téléphone, prièred’indiquer que vous participez à la conférence des minéralurgistes du Canada.

InscriptionLes frais d’inscription sont de 425 $ pour les membres de l’ICM, TMS etAIME, 100 $ pour les membres retraités (60+) de l’ICM et de 575 $ pour lesautres participants (TPS incluse). Le tarif non-membre comprend un abon-nement d’un an à l’ICM. Ces frais donnent droit à la conférence, à une copiedes comptes rendus, aux pauses café, au dîner le mardi et à la réceptionsociale en soirée ainsi qu’à la réception/souper le mercredi soir.L’inscription à la conférence et aux activités sociales doit se faire en ligneà : www.c-m-p.on.ca.

Tous les délégués inscrits à l’avance pourront recevoir leur trousse d’ins-cription au bureau d’inscription, 4e étage de l’Hôtel Westin, le lundi entre19h et 22h et de mardi à jeudi de 7h à 15h. Les autres délégués qui désirentparticiper à la conférence pourront également s’inscrire à cet endroit, auxmêmes heures.

NN..BB..:: Les formulaires de pré-inscription doivent être reçus avant le 1155 jjaann--vviieerr 22000088.. Les demandes de remboursement doivent être faites par écritavant le 1155 jjaannvviieerr 22000088.. Après cette date, des frais de 100 $ s’appliquerontaux inscriptions de même qu’aux inscriptions annulées.

FLOTATIONMyra Falls flotation circuit reconfigured from Cu-Zn to Cu-Pb-ZnT. Yeomans

Improvements in column flotation through the use of Microcel™spargers at AntaminaH.M. Lizama, J. Carrión and D. Estrella

The link between pulp zone hydrodynamic characteristics and frothstability in a 100 m3 flotation columnG. Bartilocci, M. Ourriban, A. Lockhart, J. Finch, A. Fortin and G. Goyette

Controlling process water chemistry to improve the flotation of high-iron phosphate ores at Agrium—Kapuskasing phosphate operationsB. Nanthakumar, D. Grimm and M. Pawlik

Removal of organic carbon with a Jameson cell at Red Dog MineT. Smith

Improving fine lead and silver flotation recovery at BHP Billiton’sCannington MineB. Holloway, G. Clarke, B. Lumsden

Flotation circuit analysis at Zinifex Century MineS. Schwarz, I. Crnkovic, D. Alexander

Neumatic flotation G cell—a very interesting experience for molybde-num plant in ChileS. Sánchez-Pino

INSTRUMENTATION AND PROCESS CONTROLMillMapper—a tool for mill liner condition monitoring and mill per-formance optimizationJ. Franke and D. Lichti

Application of non-intrusive sonar array-based technology to solveunique and difficult measurement situationsC. O’Keefe and J. Poplawski

Advanced control for mineral processing, better than expert systemsR.K. Jonas

Evolution of SAG mill process control at the Xstrata Nickel RaglanoperationE. Bartsch, G. Comeau and C. Hardie

MINERAL SEPARATIONThe latest developments of EPD and HS technologiesL.J. Cabri, V.N. Rudashevsky and N.S. Rudashevsky

GOLDHigh-efficiency gold recovery process using nanotechnologyA. 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 (presentedwith consideration to the operator’s point-of-view)M. Drozd

Bio-treatment of refractory gold ore in Obuasi Mines, GhanaJ.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-copperores at MaricungaS. Bustos, K. Ford, C. Fleming and R. Henderson

Gold recovery from Murgor Resources’ ores using flotationS. Kelebek and E. Yalcin

PLENARY SESSIONChair’s opening remarks and announcementsJohn Folinsbee

Engaging First Nations communitiesChief Glenn Nolan, 2007 CIM Distinguished Lecturer AwardWinner

Ore processing business experiences in Russia 2005-07John Starkey

PLANT DESIGN AND PLANT IMPROVEMENTSMineral processing education in the United StatesK. Altman

Process improvement update at Brunswick MineJ. Roberts, C. Deriden and J.-G. Paulin

Optimization and increasing throughput at JacobinaA. Kozak

Horses for courses—tailoring front-end designs to project require-mentsP. Staples, P. Messenger and G. Lane

Save time and money in industrial mineral plant startupsM. Rulff and T. Holmes

GRINDINGFine grinding of a sparsely disseminated sulphide oreA.O. Orumwense and M. Boisclair

A small-scale test to determine work index for high-pressure grind-ing rollsD. Bulled and K. Husain

Toward the 24-hour large SAG mill relineJ. Russell

DEWATERINGRaw water supply: the experience of Cerro VerdeA.J. Gunson, B. Klein and M. Veiga

Commissioning of a thickener feed de-aeration system at the XstrataNickel Raglan 0perationG. Comeau

PROVISIONAL TECHNICAL PROGRAM

Keep up to date on new developments by visiting www.c-m-p.on.caTenez-vous au courant des nouveaux développements en visitant www.c-m-p.on.ca


PlenaryOperation and Maintenance: A winning synergy for the future

A plenary session featuring five distinguished mining industryveterans is scheduled for the second day of the technical pro-gram. These mining experts will share their vision of a vital syn-ergy essential for successful operations and maintenancepractices.

Our panel of keynote speakers will be led by JacquesNantel, president, Nantar Engineering. His expertise andknowledge of the mining industry will allow for a stimulatingexchange between the panellists and those in attendance,who will be invited to actively participate. Our keynotespeakers will include the future COO of IAMGOLD as wellas the following:

Daniel Racine, vice president of operations, Agnico-EagleMines Claude Lemasson, general manager, projects, Canada/USA,Goldcorp Inc.Neil Miller, manager, maintenance and performance contracts,USA and Canada, SandvikAndrew Thorne, general manager, fuel services division,Ontario, Cameco Corporation

Séance plénièreProduction et maintenance :une synergie gagnante pour l’avenir

Une plénière réunissant cinq personnalités reconnues pour leurexpérience par les gens de l’industrie minière se déroulera lorsde la deuxième journée du programme technique. Ces expertsdu domaine minier ont accepté de partager leur vision sur lasynergie vitale et essentielle des fonctions de maintenance etd’exploitation.

Pour bien encadrer ce panel de vedettes, Jacques Nantel, prési-dent, Nantar Engineering, agira à titre de modérateur. Sonexpertise et ses connaissances du domaine minier permettrontde stimuler les discussions entre les panélistes et l’assistancequi sera appelée à participer activement. Voici nos vedettes,incluant le futur Chef de l’exploitation de IAMGOLD :

Daniel Racine, vice-président, exploitation, Mines Agnico-Eagle Claude Lemasson, directeur général, projets, Canada etÉtats-Unis, Goldcorp Inc. Neil Miller, directeur, offre de services, États-Unis et Canada,Sandvik Andrew Thorne, directeur général, division des services decombustible, Ontario, Cameco Corporation

du 24 au 27 février 2008 • Val-d’Or, Québec • February 24 to 27, 2008Photo courtesy of Aurizon Mines Ltd.

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MEMO Trade ShowApproximately 50 companies will showcase their products andservices at this year’s MEMO Conference. The trade show is agreat opportunity to drum up some business while reconnectingwith suppliers, contractors, and consultants. Look no further—the MEMO trade show is where you’ll find what you need.

Salon commercial de MEMOEnviron 50 compagnies mettront en vedette leurs produits etleurs services durant le colloque MEMO. Le salon commercialest l’occasion parfaite pour faire de nouveaux contacts et pourrenouer des liens avec des fournisseurs, des entrepreneurs etdes consultants. Ne cherchez pas plus loin, le salon commercialde MEMO a tout ce qu’il vous faut.

Bâtir ensemble vers 2020Visites minières

Des visites minières seront offertes le jeudi 28 février. Les placesseront limitées à 12 participants par visite, l’inscription préalablesera nécessaire. Les vêtements et équipements de protectionindividuelle seront disponibles sur place. Les départs et lesretours se feront aux différents hôtels de la ville.

Visite 1 : IAMGOLD, Mine MouskaThèmes : • Formation et gestion de personnel

• Exploitation d’un gisement filonienDétails : • Présentation du programme de recrutement, de for-

mation et de fidélisation du personnel appliqué auxmines Mouska et Géant Dormant

• Présentation de la géologie locale• Historique de l’exploitation• Visite sous terre

Départ : 6h Retour : 13hRemarque : Le transport par autobus sera d’une durée approxi-mative de 1h15. Le prix (65 $) inclut le transport en autobus(aller-retour) et un léger goûter au retour dans l’autobus.

Visite 2 : Agnico-Eagle, Mine LaRondeThème : • Programme d’entretien préventif d’équipement

• Treuils et câblesDétails : • 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, entre-

pôt, etc.)

Départ : 6h Retour : 13hRemarque : Le transport par autobus sera d’une durée approxi-mative de 50 minutes. Le prix (65 $) inclut le transport en auto-bus (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 profondeDétails : • 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 : 13hRemarque : Le transport par autobus sera d’une durée approxi-mative de 50 minutes. Le prix (65 $) inclut le transport en auto-bus (aller-retour) et un léger goûter au retour dans l’autobus.

Visite 4 : Agnico-Eagle, Mine GoldexThème : • Visite générale des installations de surface et

souterrainesDétails : • Usine de traitement en phase de démarrage

• Installation souterraine pour méthode de minageen vrac à grand volume

Départ : 7h Retour : 12hRemarque : Le transport par autobus sera d’une durée approxi-mative de 10 minutes. Le prix (65 $) inclut le transport enautobus (aller-retour).

Légende / legend


Working together towards 2020

3M Canada Company 102AB Cable 17Adria Manufacturing Inc. 406Association minière du Québec 1Atlantic Industries Limited 201Atlas Copco Construction 204

and Mining CanadaBASF Construction Chemicals 401Canada Kalprotect Inc. 23Chess Controls Inc. 312CIM - Canadian Institute of Mining, CIM

Metallurgy and PetroleumCMAC - THYSSEN Mining Group Inc. 402Cogep inc. 310Cubex Limited 308DSI Mining Products 110Dyno Nobel Canada Inc. 107Équipements K.N. 101Équipements miniers 2000 407Fournier Béton - Shotcrete Gatorpass 108Gaz Metropolitain CIM1Groupe Stavibel Inc. 5Hewitt Equipment Ltée 9HLS HARD-LINE Solutions Inc. 409Industrial Fabrication Inc. 309InnovExplo Inc. 106John Meunier Inc. 311Laboratoire de recherche Télébec 405Mobilité en communications souterraines

Les Systèmes Semco Limitée 25Machines Roger International Inc. 7

MacLean Engineering & Marketing Co. 210Limited

Mécanicad 208

MEGLAB 416

Mine Design Technologies 304

Mine Site Technologies 314

Multiurethanes 19

Natural Resources Canada - CANMET - 3MMSL and MTB

Nedco 27

Optimine 305

OSIsoft 202

Petro-Canada Lubricants 214

POLARIS Laboratories, LLC 203

Pompaction Inc. 109

PRO-AB Equipments 412

Provent 413

RMS Enviro Solv Inc. 302

Sandvik Mining and Construction 400

TEMA Isenmann, Inc. 13

Terex Mining 306

Tracks & Wheels Equipment Brokers Inc. 205

Victaulic 403

Walden Equipment 21

Wardrop Engineering 15

Wilson Mining Products 313

Wolseley Canada / Fusionex 301

YieldPoint Inc. 105

Exposants • Exhibitors

Departure: 6 a.m.Return: 1 p.m.Note: Transportation by bus will take about 50 minutes. Theprice ($65) includes transportation to and from the mine and alight lunch on the bus.

Tour 3—Agnico-Eagle Mines, LaRonde MineTheme: • Sinking an underground shaft (winze)

• Deep mining ground control and seismic monitoringDetails: • 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. Theprice ($65) includes transportation to and from the mine and alight lunch on the bus.

Tour 4—Agnico-Eagle Mines, Goldex MineTheme: • Visit to the surface and underground installationsDetails: • Visit to mill at the startup stage

• Visit to underground installation for high-volumebulk mining

Departure: 7 a.m.Return: noonNote: Transportation by bus will take about 10 minutes. Theprice ($65) includes transportation to and from the mine.

Mine toursMine tours will be held on Thursday, February 28. Places arelimited to 12 participants per visit and pre-registration isrequired. Individual safety equipment and clothing will be avail-able on site. Departures and return points will be at the variousconference hotels.

Tour 1—IAMGOLD, Mouska MineThemes: • Personnel training and management

• Narrow-vein mine operationsDetails: • Presentation of the recruitment, training, and

employee loyalty programs at the Mouska andGéant 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 min-utes. The price ($65) includes transportation to and from themine and a light lunch on the bus.

Tour 2—Agnico-Eagle Mines, LaRonde MineTheme: • Preventive maintenance of equipment program

• Hoists and cables Details: • 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, ware-

house, etc.)

November 2007 | 83

Programme socialLe dimanche 24 févrierCocktail de bienvenue

Tous les délégués sont invités au cocktail de bienvenue« Saucisses et bières » à la cafétéria de la polyvalente LeCarrefour de 18h30 à 22h. Cet événement est offert gratuite-ment aux délégués.

Le lundi 25 févrierDéjeuner dans le salon commercial

Tous les délégués et exposants sont invités à dîner ensembleau salon commercial, dans la cafétéria de la Polyvalente LeCarrefour de 12h à 13h45. Le déjeuner est inclus avec lesfrais d’inscription. Des billets additionnels sont disponibles àl’inscription au coût de 20 $.

Souper spectacleTous les délégués et leurs invités sont conviés à un soupermettant en vedette des produits du terroir local suivi d’un spec-tacle de haute qualité avec notre invité tout droit arrivé de LasVegas, M. André-Philippe Gagnon. Le gala aura lieu à l’HôtelForestel débutant par le cocktail à 18h et suivi par le souper de19h à 22h30. Le coût du billet est de 90 $ pour les déléguéset 125 $ pour leurs invités et les exposants. Un service denavettes sera en place entre les hôtels suivants : Hôtel-MotelContinental, le Comfort Inn, Hôtel-Motel Prélude et le MotelL’Escale.

Les mardi et mercredi 26 et 27 févrierDéjeuner dans le salon commercial

Tous les délégués et exposants sont invités à déjeuner ensem-ble au salon commercial, dans la cafétéria de la Polyvalente LeCarrefour de 12h à 13h45. Le déjeuner est inclus avec lesfrais d’inscription. Des billets additionnels sont disponibles àl’inscription au coût de 20 $.

Social programSunday, February 24Welcoming Reception

All delegates are invited to the “Beer and Sausage” WelcomingReception in the Le Carrefour High School cafeteria, from6:30 p.m. to 10 p.m. This event is free for delegates.

Monday, February 25Lunch in the Trade Show

All delegates and exhibitors are invited to have lunch togetherin the Trade Show, in the Le Carrefour High School cafeteria,from noon to 1:45 p.m. The luncheon is included with registra-tion. Additional tickets are available for $20 at the registrationdesk.

Gala DinnerAll delegates and their guests are invited to a supper featuringterroir products, followed by a fantastic show with André-Philippe Gagnon, straight from Las Vegas. The Gala will beheld 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 fordelegates and $125 for guests and exhibitors. There will be ashuttle service to and from the following hotels: Hotel-MotelContinental, Comfort Inn, Hotel-Motel Prélude, and MotelL’Escale.

Tuesday and Wednesday, February 26 and 27Lunch in the Trade Show

All delegates and exhibitors are invited to have lunch together inthe Trade Show, in the Le Carrefour High School cafeteria, fromnoon to 1:45 p.m. The luncheon is included with registration.Additional tickets are available for $20 at the registration desk.


Programme techniquepréliminaire • Provisionaltechnical programLundi | Monday | AM1

Ouverture • Welcoming RemarksEbe Scherkus, président et directeur de l'exploitation, MinesAgnico-Eagle Limitée, et Louis Gignac, consultant indépendantet directeur, Domtar et Gaz Métro, démarrent le programmetechnique. Ce duo chevronné et charismatique a aidé à forgerl’image actuelle de l’industrie minière. Ebe Scherkus, president and COO, Agnico-Eagle MinesLimited, and Louis Gignac, independent consultant and director,Domtar and Gaz Métro, kick off the technical program. Thisexperienced and charismatic pair has helped shape the imageof the Canadian mining industry today.

Lundi | Monday | AM2

Production | Production

Mines en profondeur • Deep MiningPrésident/Chair: Michel Leclerc

Les défis d’aujourd’hui sont de plus en plus nombreux avec lesopérations qui s’approfondissent. Les mines très profondes ontdes défis très particuliers et durant cette session vous enten-drez des spécialistes qui vous aideront à affronter ces particu-larités et conditions exceptionnelles.As operations go deeper, the number of challenges increases.Very deep mines have particular challenges and during this ses-sion you will hear from specialists who will help you face theseexceptional and special conditions.Elliptical shafts C. Graham, CAMIRO Mining Division, and V. Evans, MiningTechnologies International

The development of a seismic risk management plan atAgnico-Eagle’s LaRonde MineF. Langevin

Possible alternatives for diesel-powered mobile equipment forthe conditions of deep minesJ. Paraszczak, Université Laval

Mining at depth under weak rockmassB. Foo and I. Iakovlev, Wardrop Engineering Inc.

Maintenance | Maintenance

Environnement • EnvironmentPrésident/Chair: Léandre Gervais

Cette session portera sur des approches innovatrices permet-tant de réduire l'impact environnemental relié à l'exploitationminière. This session covers innovative approaches to reducing mining'senvironmenal impact.ACTIFLO® clarification for mining application: efficient andcompact technologyG. Bourdages, John Meunier Inc./Veolia Water Systems, M. Dupla andC. Boyle, John Meunier Inc.

Metal extraction by Festuca arvernensis and Koleria cristatagrowing on unpolluted and polluted soils: a pot experimentS. Berrah El Kheir, N. Saidi and A. Bouabdli, Equip Pollution and phy-toremediation Ibn Tofail University

Use of GEOTUBES for water treatmentP. 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

Cette session ciblera les nouvelles technologies innovatricesqui ont un impact majeur sur le cycle conventionnel d’exploita-tion minière (marinage – forage – sautage). La session si-gnalera aussi l’importance des mesures concernant la propriétéintellectuelle.This session will put an emphasis on breakthrough technologiesthat have a major impact on the conventional mining cycle(muck – drill – blast). It will also illustrate the importance of theactions related to intellectual property.The basics of intellectual property protectionV. Cottrill, Gowling Lafleur Henderson LLP

Innovation—the path to higher productivityM. Denis, R. Siggelkow and W. Siggelkow, HLS HARD-LINESolutions Inc.

Lundi | Monday | PM2


Contrôle des pressions de terrains II • GroundControl II

Présidente/Chair: Chantal DoucetCette session est la suite de Contrôle des pressions de ter-rains I durant PM1.This session is a continuation of Ground Control I in PM1.Ground support observations at Xstrata’s Craig and OnapingminesB. Simser and R.W. Deredin, Xstrata Nickel’s Craig Mine

Suivi non-destructif de lévolution de la résistance mécaniquedes remblais cimentés en pâte : application de la résistivité etde la micro-sismique en laboratoireS. Ouellet, Genivar


Efficacité énergétique II • Energy Efficiency IIPrésident/Chair: Jean Béliveau

Cette session est la suite de Efficacité énergétique I durantPM1.This session is a continuation of Energy Efficiency I in PM1.Identification of potential energy savings in Quebec mine ven-tilation systemsR. Lacroix, S. Hardcastle and C. Kocsis, Mining and Mineral SciencesLaboratories, CANMET, Natural Resources Canada

Soft energy efficiency measures and innovations—incrementalgains in minesP. Laliberté, Mining and Mineral Sciences Laboratories, CANMET,Natural Resources Canada


R&D—Exploitation minière II • R&D—Mining IIPrésident/Chair: Marcel Laflamme

Cette session est la suite de R&D—Exploitation minière I durantPM1.This session is a continuation of R&D Mining I in PM1.Using the K.I.S.S. principle in ventilation modellingT.R. Paquin, Hatch Ltd

ITH drilling at 400 psi at the Goldex MineP. Frenette, Agnico-Eagle, Goldex Division

November 2007 | 85


Meilleures pratiques • Best Practices 1Président/Chair: Roger Coutu

Cette session comprendra des communications qui ciblerontl’innovation, les outils et les réussites correspondant auxmeilleures pratiques et stratégies. Elle sera très profitable àtous ceux de notre industrie qui s’efforcent d’améliorer les pra-tiques et les stratégies de maintenance.This session will include papers that will focus on innovation,tools, and accomplishments which relate to best maintenancepractices and strategies. This will be very informative for peoplein our industry who strive and look for ways to improve mainte-nance practices and strategies.Improving mining and minerals plant performance—operationsand maintenance working togetherG. Johnson and C. Munro, Citect

Lundi | Monday | PM1


Contrôle des pressions de terrains I • GroundControl 1

Présidente/Chair: Chantal Doucet

Défis et solutions reliés au design du soutènement dans diversenvironnements miniers ainsi que présentation de deux métho-des de suivi non destructif de la résistance mécanique des rem-blais cimentés en pâte.Challenges and solutions pertaining to ground control design invarious mining environments; presentation of two non-destruc-tive monitoring methods for cemented paste backfill.Evolution of ground support practices at Agnico-Eagle’sLaRonde DivisionF. Langevin

Mining environments that can contribute to corrosion of min-ing supportJ. Hadjigeorgiou and J.-F. Dorion, Université Laval


Efficacité énergétique I • Energy Efficiency 1Président/Chair: Jean Béliveau

Dans un environnement où les coûts d’énergie sont à la hausseet engendrent une forte pression sur les coûts d’exploitation,chaque méthode et technique de réduction de consommationde l’électricité est utile et même nécessaire. Cette session vousoffre ces possibilités à la lumière des technologies disponiblesaujourd’hui. In an environment where energy costs are on the rise and put-ting pressure on operating costs, each method and techniqueknown to reduce energy consumption is useful and even nec-essary. This session presents these current available technolo-gies.Energy-efficient water treatment plantP. Martel, Genivar, A. Coggan and D. Berthelot, Rio Algom

Ventilation on demand projects—CVRD IncoC. Allen, CVRD Inco


Mardi | Tuesday | PM1


Meilleures pratiques II (1) • Best Practices II (1) Président/Chair: Brad KingstonCette session soulignera les meilleures pratiques organisation-nelles, techniques, de méthodes et de procédés ainsi que lesactivités qui se sont avérées efficaces pour améliorer le rende-ment – les coûts et/ou la fiabilité.This session will highlight best practices in organization, tech-nique, method, process, and activity that have proven effectiveat delivering improved performance—cost and/or reliability.Canada’s MMP (maintenance management professional) cer-tification programN. Clegg, Plant Engineering and Maintenance Association of Canada(PEMAC)

Training operators—a diligent responsibilityD. Gravel, Wardrop Engineering


Maintenance préventive et prédictive I •Preventive/Predictive Maintenance I

Président/Chair: Chris DoughertyL’efficacité de la maintenance et la disponibilité des équipementsconstituent un véritable défi; la maintenance prédictive/préven-tive est essentielle à l’accroissement global de l’efficacité desactifs. Vous verrez plusieurs aspects de cette approche.The maintenance effectiveness and equipment availability are areal challenge and predictive/preventive maintenance is essen-tial to increase overall asset efficiency. You will learn manyimportant aspects of this approach. The protection of electrical motorsG. Brunello, GE Multilin


R&D—Maintenance I • R&D—Maintenance IPrésident/Chair: Tony GeorgeEn tant que partie intégrante d’une production rentable, la main-tenance exige de la R&D pour assurer une amélioration con-tinue. Les communications de cette session analyseront lesdiverses initiatives de R&D qui démontrent l’engagement de l’in-dustrie minière à travailler de manière plus intelligente dans lespratiques de maintenance.As an integral part of cost-effective production, maintenancerequires research and development to ensure continuousimprovement. Papers in this session will examine various R&Dinitiatives that demonstrate the mining industry’s commitment toworking smarter in maintenance practices.Rebuild, repair and protect industrial equipment from wearI. Bouchard, Henkel Loctite

Mardi | Tuesday | PM2


Meilleures pratiques II (2) • Best Practices II (2) Président/Chair: Brad KingstonCette session est la suite de Meilleures pratiques II (1) durantPM1.This session is a continuation of Best Practices II (1) in PM1.Ingénierie de maintenanceL. Soucy, Promaintech Novaxa

Synergie production-maintenance par le soin des équipementsL. Soucy, Promaintech Novaxa

Mardi | Tuesday | AM2


Méthodes d’exploitation • Mining MethodsPrésident/Chair: Alain Béland

Lors de ces conférences, vous pourrez apprendre et connaîtredifférentes méthodes pratiques tant en améliotation qu'en inno-vation pour divers types de minage. Les méthodes convention-nelles filonniennes ou méthodes modernes mécanisées serontabordées par nos panélistes.This session will provide practical ways of improving differenttypes of mining methods, namely conventional narrow-vein andmodern mecanized methods.Improvements to the Zone 1 mining method at the DoyonMineF. Girard and F. Brunet, IAMGOLD—Doyon Mine


Exploitation de gisements filoniens • Narrow-VeinMining

Président/Chair: Éric Tremblay

Au cours de cette session, nous discuterons des méthodesinnovatrices d’exploiter des gisements filoniens, de l’optimisa-tion des méthodes d’exploitation et du contrôle mécanique desroches dans des environnements de grandes contraintes, sansremblayage en pâte ni cimenté.In this session, we will talk about mining method innovation innarrow veins, optimisation of mining methods and finally, rockmechanical control in high-stress mines with no paste fill orcemented rock fill.Hybrid long-hole method and pillar recovery in narrow veinminingP. Chabot, IAMGOLD—Sleeping Giant Mine

Adaptation of the long-wall mining method with a platformR. Royer, IAMGOLD—Mine Géant-Dormant

Challenges associated with narrow-vein mining in a high-stress environment: Mouska Mine case studyE. Williams, IAMGOLD—Mine Mouska


Équipement innovateur • Innovative EquipmentPrésident/Chair: Eric Hinton

Cette session touchera à divers sujets – de la conception deséquipements et du contrôle des systèmes à l’automatisation desprocédés. Les communications porteront, entre autres, sur la vibra-tion des béquilles de foreuses et des mesures de contrôle à lagestion des ventilateurs. Les télécommandes sans fil seront aussiexaminées et des discussions suivront chaque communication.This session will have a variety of subject matter, from equip-ment design and system control to automation of processes.The papers vary from jackleg vibration issues and control meas-ures to ventilation fan management. Wireless remote commandwill also be examined and discussion will follow each paper.Development of an anti-vibration handle for pneumatic jacklegrock drillsP. Marcotte, IRSST, S. Ouellette, LMSM-CANMET, J. Boutin, IRSST, G.LeBlanc, LMSM-CANMET, and P.-É. Boileau, IRSST

Wireless sensor networks: future solution for industrialautomationC. Abdellah, LRCS—Université Laval

Real-time ventilation-on-demandA. Cervinka, Newtrax Technologies Inc., and M. Masse, SimsmartTechnologies Inc.

November 2007 | 87


Maintenance préventive et prédictive II •Preventive/Predictive Maintenance II

Président/Chair: Chris Dougherty

Cette session est la suite de Maintenance préventive et prédic-tive I durant PM1.This session is a continuation of Preventive/PredictiveMaintenance I in PM1.


R&D—Maintenance II • R&D—Maintenance IIPrésident/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 I • Mining BestPractices I

Président/Chair: Guy Belleau

Cette session sera l’occasion par excellence pour échanger,rencontrer des collègues d’autres exploitations et partager desexpériences avec eux. Ce sera aussi une excellente occasiond’améliorer vos opérations en ce qui concerne la sécurité, laqualité et l’efficacité.This session will be a great opportunity to exchange, connectand share experiences with colleagues of other operations. Thiswill also be an excellent opportunity to improve your operationswith respect to safety, quality and efficiency.The 425 main ore zone project—dealing with SO2 emissionsÉ. Côté, D. Petrie and M. Verreault, Xstrata Zinc, Brunswick Mine

Pastefill operation at Xstrata Copper—Kidd MineM. McGuinness and C. Bruneau, Xstrata Copper, Kidd Mine

Building Perseverance Mine: construction standards andguiding principles!L. Joncas, Xstrata Zinc, G. Belleau, Xstrata, and T. Plaisance, XstrataZinc


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 lagestion des cheminées à minerai et leur longévité, le besoin dedéplacer le matériel en accroissant la capacité des treuils d’ex-traction et les défis rencontrés lors de la construction d’unenouvelle mine de nickel au Manitoba.This session outlines case studies on the challenge of ore passmanagement and longevity, the need to move material throughincreased hoisting load capacity, and the challenges of con-structing a new nickel mine in Manitoba.Observations on the ore pass systems at Brunswick MineJ. Hadjigeorgiou, Université Laval, K. Esmaieli, R. Harrisson, BrunswickMine, Xstrata Zinc

Speed up that hoist!J. Morrow, Xstrata Nickel

Crowflight Minerals Bucko Mine—a new mine in ManitobaM.L. Hoffman, P. Keller and G. Collins, Crowflight Minerals

Mercredi | Wednesday | AM2


Meilleures pratiques d’exploitation II • Mining BestPractices II

Président/Chair: Guy Belleau

Cette session est la suite de Meilleures pratiques d’exploitationI durant PM1.This session is a continuation of Mining Best Practices I in PM1.Application of mass blast for stope blasting in deep minesP. Larouche, Agnico-Eagle Mines, LaRonde Division

Lessons learned on developing rockfill and paste fill tunnelsat Brunswick MineR. Harrisson, Xstrata BMS, and R. White

Centralized electronic blasting system application at MyraFalls operationsG. Zhao and L. Dueck


Étude de cas—exploitation minière II • Case Study—Mining II

Président/Chair: Martin Drennan

Cette session est la suite de Étude de cas—exploitation minièreI durant AM1.This session is a continuation of Case Study—Mining I in AM1.

Mercredi | Wednesday | PM1


Planification et ordonnancement • Planning andScheduling

Président/Chair: Jacek Paraszczak

La session aborde les sujets concernant l'optimisation et lagestion de la maintenance, ainsi que la gestion du parcd'équipements. Les articles couvrent le large spectre d'opéra-tions incluant les mines à ciel ouvert et les concentrateurs, ainsique des sujets s'étendant du logiciel innovateur jusqu'auxstratégies et pratiques.This session addresses important issues concerning optimiza-tion and management of maintenance as well as equipmentfleet management. The papers cover a broad spectre of opera-tions including open-pit mining and concentrators, and subjectranging from the innovative software to strategies and prac-tices.Lean maintenance et fiabilitéL. Soucy, Promaintech Novaxa

PITRAM3 fleet management systemJ.H. Williams, Micromine Ltd.

Pratique de fiabilité totale d’usineY. Cabot and J. Cayouette, Agnico-Eagle Mines, LaRonde Division

Geology and distribution of the major gold camps in California: Mother LodeBelt, Grass Valley District, and Alleghany District (from Ash, 2001, Fig. 8.2).

This chapter has relied heavily on Ash (2001), who has prepared a fine sum-mary of a complicated subject, and also kindly suggested improvements to mytext. The other main source of information is Knopf (1929).

The Sierra Nevada region was one of the most intensely studied mineral dis-tricts 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 geologicalsetting. In fact, California gold is an excellent example of the evolution thatoccurred in economic geology theory over a span of about 150 years. Ash hassummarized the three principal phases of understanding, beginning with obser-vations made during the early classical stage, then describing how the origin ofthe host rocks had to be reconciled with plate tectonic theory, and finally con-cluding with an interpretation of the role played by the ophiolite model in thegenesis of the gold deposits.

Gold-quartz vein deposits throughout the North American Cordillera, fromCalifornia to Alaska, are often spatially associated with carbonate-sericite-pyrite-altered ophiolite rocks, both mafic and ultramafic, known as listwanites.Listwanite (after the Russian listvenity, from the type locality in the UralMountains) is a term that was used almost exclusively by Russian geologists untilthe 1970s to describe listwanite-altered rocks veined by hydrothermal quartz-carbonate. As used in California, the term describes an alteration suite composedof carbonate, mariposite/sericite, pyrite, and introduced quartz. This alteration

assemblage was referred to by early California minersas ‘blue jay.’

Ophiolites are obducted, usually dismembered,remnants of ancient oceanic lithosphere consistingmainly of crustal igneous and sub-crustal metamor-phic mantle rocks. In orogenic belts like the NorthAmerican Cordillera, ophiolitic assemblages occureither as allochthonous, dismembered and imbri-cated structural slices that were transported tectoni-cally across former continental margins, or as imbri-cated and deformed slices in the central parts of oro-gens. The current view, which is well rooted in thedevelopment of plate tectonic theory, is that ophio-lites are generated at oceanic spreading centres,either at mid-ocean ridges or in mantle slabs abovesubduction zones.

Mother Lode systemThis was the bewildering geological setting for the

gold deposits that faced economic geologists in themiddle of the 19th century. The classical geologicalinterpretation, as summarized by Knopf (1929), wasthat the Mother Lode system was a steeply dippingcomplex of metasediments, metavolcanics, and someserpentinized intrusive bodies. For obvious reasons,

historyThe 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)

California gold (Part 2)by R.J. “Bob” CathroChemainus, British Columbia


economic geology

November 2007 | 89

the knowledge base available at the time didn’t permit thevarious accreted and thrusted units to be differentiated.Now called the Calaveras Complex, it was originallydivided into an older Calaveras formation (typically blackphyllites with subordinate quartzite, limestone, and greenschists) and a younger Mariposa formation ofCarboniferous age (derived by metamorphism of augitetuffs and lavas and interbedded, in places, with phyllite).The complex is one of a number of litho-tectonic elementswithin the Sierra Nevada Metamorphic belt.

The early underground mapping recognized two princi-pal types of gold deposits, quartz veins and bodies of min-eralized country rock, of which the latter shows the mostvariety and complexity. The quartz veins generally occur assystems of parallel or acutely intersecting veins. As many asfour veins were worked in individual mines but few couldbe traced for more than one kilometre. They usually inter-sected the cleavage of the enclosing rocks at an acute anglein both strike and dip, filling fissures that were formed byreverse faulting. In some cases, the displacement amountedto as much as 120 metres. The veins tended to pinch andswell abruptly, with quartz becoming more admixed at theedges of the lenses. Banding or ribboning was common inveins that were enclosed by slate or schist and invariablyparallel 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 bewider than adjacent barren sections of the vein, large quartzbodies did not necessarily make ore. The oreshoots weregenerally 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 wereas deep as one kilometre. The only generalization thatcould be made about ore controls was that oreshoots couldoccur in any rock except serpentinite, that slate was a morefavourable wallrock than greenstone, and that veins whollyenclosed in greenstone tended to be low grade. In the earlyyears, ores grading as low as 0.1 to 0.15 opt were mined.The bullion ranged in fineness between 790 and 840, withthe balance consisting mainly of silver.

Pyrite was by far the most abundant sulphide mineral inthe ores, comprising one to two per cent of the quartz oreand up to two or three times that in the mineralized coun-try rock. It was formed early in the initial quartz phasealong with arsenopyrite, which was the second most abun-dant sulphide. Coarse arsenopyrite coincided with rich ore

along the central part of the Mother Lode. Sphalerite andgalena were generally contemporaneous with gold.Although the former was more abundant, galena was con-sidered the best indicator for gold. The telluride mineralpetzite, which was restricted to the portion betweenJackson and south of Sonora, was also a good indicator ofrich ore. Minor amounts of chalcopyrite and tetrahedritewere also present but were indifferent indicators. Stibnitewas noted in one of the mines at the south end.

Two types of mineralized country rock were present, aso-called ‘grey ore’ (also referred to as replacement ore)and mineralized schist, occurring either adjacent to quartzveins 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 thehydrothermal alteration of mafic igneous rocks into list-wanites. Many of the grey oreshoots were large, with anaverage grade of up to 0.4 opt and a sulphide content of

Geology of the Mother Lode Belt between Jackson and Plymouth (from Ash, 2001, Fig. 8.6).

In spite of the obvious limitations,pioneering advances had been made by 1929 in the study

of the profound wall rock alteration that accompaniedthe ore-forming process of the Mother Lode veins

three to six per cent. They generally adjoined thin quartzveins or occurred in the wedge between two intersectingveins. The grade of the fine-grained ore could only bedetermined with assays.

The mineralized schist oreshoots consisted of pyriticsericite-ankerite schist, generally ramified with quartz-ankerite veinlets, and were interpreted to be the result ofalteration of amphibolite and chlorite schist. They weregenerally lower in grade, from 0.1 to 0.15 opt, although oneof the richest ore bodies ever mined along the Mother Lodesystem, on Carson Hill, was of this variety. Many oreshootsof this type formed either the footwall or the hanging wallof large, thick, barren quartz veins.

In spite of the obvious limitations, pioneering advanceshad been made by 1929 in the study of the profound wallrock alteration that accompanied the ore-forming processof the Mother Lode veins. Ankerite formed as a replacementof fine-grained mafic igneous rocks, whereas magnesiteformed from ultramafic rocks, usually serpentinite.Serpentinite and the augitic greenstones were the most sus-ceptible to ankerite and magnesite replacement, formingbelts many metres thick that are generally tinted a delicategreen by the presence of the chrome-rich mica mariposite.Sericite, albite, pyrite, and arsenopyrite were also com-monly introduced through chemical attack, while goldmigrated into the wall rocks, where it is associated with sul-phides. The alteration process was believed to involve the

addition of great quantities of carbon dioxide and potas-sium-rich fluids to the wall rocks. At the same time, theremoval of comparable amounts of silica from the wallrocks was thought to provide more than enough to supplythe quartz in the Mother Lode veins.

Modern studies have shown that the gold-quartz veindeposits are preferentially associated with ophiolitic mem-bers of the complex. The late Paleozoic ophiolitic andchert-argilite members are interpreted to have formed asan oceanic basement along the continental margin thatwas disrupted by periods of basinal magmatism during theLate Triassic–Early Jurassic, and again in the latest MiddleJurassic to early Late Jurassic. Both events were followedby intervals of tectonism and deformation during theMiddle Jurassic Siskiyou orogeny and the Latest JurassicNevadian orogeny. The post-Nevadian Sierra Nevadabatholith intrudes the Sierra Nevada metamorphic beltalong its eastern margin. Earlier 150 to 140 Ma magma-tism resulted in small intrusive bodies, dykes and sills,whereas the bulk of the batholith was intruded between120 and 80 Ma.

Clark (1970) calculated the total gold production fromCalifornia up to 1969 as more than 106 million ounces(about 3,300 tonnes). The lode portion came from count-less small mines plus a few large ones. Although detailedproduction records do not exist, he was able to document40 that produced between about one and five millionounces, seven that produced between five and ten million,and two in the Grass Valley camp, Empire-Star and Idaho-Maryland, that were much larger.

Within the Mother Lode, about half the gold came froma 16 kilometre long section between Plymouth and Jackson,in Amador County. This portion also hosted most of thelargest producers, including the Central Eureka andKennedy mines, both of which yielded more than 46.5 kilo-grams (1.5 million ounces) and the Argonaut and Keystonemines (over 1.0 million ounces each). Grey ore was themainstay of the Keystone Mine, which operated from 1852until 1920. The only mine to produce more than 1.0 millionounces that was not situated in that part of the belt wasCarson Hill. It was also the source of the largest piece ofgold recovered from the Mother Lode, in 1854. It weighed72.8 kilograms (2340 ounces). CIM

economic geology


ReferencesAsh, C.H. (2001). Relationship Between Ophiolites and Gold-Quartz Veins in the NorthAmerican Cordillera. Geological Survey Branch Bulletin 108. Victoria: British ColumbiaGeological 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 Bulletin193. Sacramento: California Division of Mines and Geology.

Knopf, A. (1929). The Mother Lode System of California. U. S. Geological Survey ProfessionalPaper 157. Washington: Government Printing Office.

Lindgren, W. (1933). Differentiation and Ore Deposition, Cordilleran Region of the UnitedStates. In J.W. Finch (Ed.), Ore Deposits of the United States, Lindgren Volume, (p. 170). NewYork: The American Institute of Mining and Metallurgical Engineers.

Geology of the Grass Valley District (from Ash, 2001, Fig. 8.5)

mining

Shaft Sinking from 1800 to 1900—Cousin Jacks

During the latter part of the reign of the Tudors in England(1485–1603), Saxon technicians were brought to England toteach Cornishmen to sink shafts and mine Cornwall’s exten-sive tin and copper deposits. This worked so effectively thatby the early 19th century Cornwall possessed some of thebest contemporary European mining technology.

Beginning about 1840 and repeating in 1865, Cornishmining prosperity slumped disastrously for a number oftechnical and economic reasons. The discovery of rich over-seas copper deposits coupled with a degree of mismanage-ment in the Cornish mines worsened the situation, throw-ing Cornish shaft sinkers and miners out of work. At thesame time, the 1800s saw a great deal of British capitalinvestment in overseas mining ventures. These British-owned mining operations recruited their skilled labourfrom Cornwall and by the mid-1820s, Cornish miners, or “CousinJacks” as they were called, were tobe found all across Latin Americasinking shafts and developingmines. Cornish miners were alsobrought in to develop and minelead deposits in the United States,as well as in Norway and Spain.

Copper was discovered inAustralia in 1848 and more Cornishminers emigrated to that area todevelop the mines there. Additionalmineral strikes across the Americasand Australia followed, whichattracted Cornish miners. By 1850,there were an estimated 7,000Cornish miners and dependents inthe upper Mississippi region. Theirskills enabled them to construct thedeep shafts necessary in that regionas well as run the surface “dig-gings.” Some of the Cornish minerscrossed into Canada to work at theBruce Mine in northern Ontario,which was acquired in 1847 by theMontreal Mining Company and

The evolution of shaft sinking systems in the western world and the improvement in sinking ratesPart 3—Shaft sinking from 1800 to 1900: Cousin Jacks

by Charles Graham, managing director, CAMIRO Mining Division, andVern Evans, general manager, Mining Technologies International

became the first successful copper mine in Canada. The shaftwas sunk and the mine operated until the 1860s, with everyshaft sinker and miner being Cornish.

The discovery of gold in South Africa in 1880 providedanother area where Cornish expertise in shaft sinking andmine operation was required. In the Transvaal, prior to theBoer War, an estimated 25 per cent of the white workforcewas Cornish. It can therefore be seen that most of the shaftsexcavated during this period were sunk using very similarequipment and probably with similar advance rates.

The underground miners of Cornwall were divided intotwo classes—tutmen and tributers. The tutmen did “tut”work, which consisted of specific excavation projects, let outby contract to a party offering the lowest bid. A tut party con-sisted of a number of men, normally divided into three gangs,

each of which would work an eighthour shift, so that work proceededaround the clock. When a newmine was being opened up, tutmenwere employed to sink the shaftand run the levels in preparationfor working the ore body. Once theore body was reached, it was com-mon to shift to tribute work. Thework of tribute miners was organ-ized by the regular mine supervi-sors. The tutmen were, in effect,shaft sinking contractors being paidaccording to their contract.

The invention of the steamengine was the most importantinnovation of the IndustrialRevolution. This inventionspawned two very important inven-tions that much improved the effi-ciency of shaft sinking in the early19th century—steam-poweredhoists and steam-powered pumps—both of which were pioneered inCornwall. The Cornish steam-pow-ered pumps were exported all overthe world.

3

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Cornish shaft sinker

November 2007 | 91

mining


The development of steam-powered mine hoists in theearly 19th century brought about a new problem. Prior to theuse of a mechanically powered hoist, hoisting speeds hadbeen rather slow. Now, with higher speeds, it was necessaryto have a device that prevented the buckets from swinging inthe shaft and crashing into each other when they passed inthe shaft.

This problem was solved through the introduction ofeither rope or fixed guides, which restricted the oscillationsof the moving conveyances in the shaft. The lateral move-ment of the hoist rope was controlled through the use of across-head or rider which travelled on the guides and heldthe hoisting rope securely in place as the bucket travelled inthe shaft.

Also, with the introduction of deeper shafts, improvedhoist ropes were necessary. This problem was solved when,between 1831 and 1834, Wilhelm Albert, a German miningengineer, developed the first wire rope for mine hoisting.Wilhelm Albert’s first ropes consisted of wires twisted arounda hemp rope core. These ropes did not function particularlywell but were followed by developments over a 40-yearperiod (1849–1889), when the majority of the basic forms ofwire rope in use today were devised.

With the utilization of steam-powered hoisting equipmentcame the utilization of headframes. Structures over the top ofshafts had been very rudimentary when horse whims werebeing utilized.

Until 1840, there were very few mechanical ventilatingdevices used for shaft sinking. The subject of mechanicalventilation received a considerable stimulus in 1840 whenthe Belgium Academy of Science offered prizes for machinesthat could be successfully used to ventilate mine shafts.Engineers were so successful that by 1850, mechanical ven-tilation was the most popular ventilation system.

Much of Central Europe is underlain by a series of stratawhich are heavily water-bearing and very difficult to sinkshafts through. In 1883, in Germany, F.H. Poetsch developedthe freezing method for shaft sinking through heavily water-bearing ground. This system was extremely popular inGermany, France, Poland, the Netherlands, and Belgiamwhere over 100 shafts were sunk using this method.

Although it was not necessary in Canada to utilize thefreezing system for shaft sinking during this time period,there have been some shafts sunk in Canada using thismethod, including 15 potash shafts sunk in the late 1950sand 1960s in Saskatchewan.

In addition to the freezing method, another method wasdiscovered for assisting the process of shaft sinking throughwater-bearing ground—the cementation process. The firstapplication of the cementation process took place in 1864when a break in the brick shaft lining, at a depth of 270 feet,occurred in one of the Rhine Preussen mine shafts. Theinflow was stopped by pumping in a thin water cement mixinto the area of the leak using a hand pump. Over the next30 years, a number of attempts were made to improve this

process. In 1896, Monsieur A. Françoise developed hismethod of drilling and injecting a water cement mixturefrom within the shaft perimeter. Many shafts in France,Germany, and Belgium were sunk using the cementationmethod.

In addition to the above innovations, the 19th centurysaw a number of inventions that speeded the task of drillingand blasting, and thus improved shaft sinking advance ratesand the safety of both shaft sinkers and miners.• Hazardous ignition was overcome in 1831 with the inven-

tion 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 electricaldetonator 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 plantswere steam-powered, however.

• The piston-type rock drill was developed by CharlesBurleigh, an American, in 1865. These were subsequentlyreplaced by drills developed by Rand and Ingersoll in the1870s and 1880s.

• In the 1890s, George Leyner of Colorado introduced hol-low drill steel that permitted the flushing of cuttings witha jet of air. Unfortunately, this compounded the dust prob-lem. Leyner modified his drills to allow the injection ofwater as well, wetting down the dust.All of these inventions increased shaft sinking advance

rates. Drills, however, still had to be firmly mounted oncolumns to support their weight and resist the recoil forces.Although the drills were large and unwieldy, they were stillan improvement over hand drilling.

In his booklet entitled Metal Mining Performance in Daysof Hand Boring and Gunpowder, John Higgins provides infor-mation on shaft sinking advance rates for three shafts that

6

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T obl n, 1831 1834, W G

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40

1849 – j

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A typical sinking headframe in Germany around 1849-1889

mining

November 2007 | 93

Galloway stage, a modern multi-decksuspended work platform, is named.

In most of Europe at this time,shaft advances were very little fasterthan those being obtained in NorthAmerica. Satisfactory advance rateswere considered to be 15 to 20 metresper month. In South Africa, advancerates were somewhat faster, due tothe use of massive amounts of labour.

Probably the first successfulmechanical shaft excavating system

was introduced in 1852. The Kind–Chaudron system of shaftsinking is basically boring on a huge scale. The system wasdeveloped in Germany to enable shaft sinking through heav-ily water-bearing ground. Between 1852 and 1904, therewere 79 shafts sunk using this method, all successfully.

The Kind–Chaudron system resembles a large rod anddrop drill. Instead of ordinary drill bits, massive tools called“trepans” are employed, consisting of a heavy iron frame onthe lower edge on which a number of individual cutters areset. A 15 foot trepan would weigh 25 to 30 tons. The trepanis attached to a heavy rod suspended from a walking beamoperated by an engine on the surface, as in ordinary boring.The advance bore is cleared of cuttings with a bailer, similarto that used in boreholes.

The entire excavation is carried out under water, then alining of special design is lowered into place and the shaftdewatered. The lining is composed of cast iron rings boltedtogether at the shaft collar and gradually lowered to the shaftbottom. The space between the lining and the shaft wall isgenerally filled with concrete.

The Kind–Chaudron sinking system became obsolete inthe early 1900s with the development of grouting and freez-ing systems, which were considered to be better ways of sink-ing through heavily water-bearing ground.

As can be seen from the table, the period from 1800 to1900 was a period of huge improvements in shaft sinkingtechniques. Sinking rates increased fourfold over the previ-ous period.

ReferencesBrown, 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 ShaftSunk. Mulheim: ThyssenKrupp.

Higgins, J. (2004). Metal mining performance in days of hand boring and gunpowder. RetrievedApril 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.

CIM

were sunk at the Wheal Agar Mine in Cornwall between1856 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, theirintroduction did have implications for mine operators, par-ticularly in the area of shaft sinking. A description is given asto how two Rand No. 2 rock drills were used to sink a shaftthrough hard rock. The shaft was divided into two compart-ments, each measuring 4 feet by 4 feet. Shaft excavation was51⁄2 by 12 feet.

The day shift was the drilling shift and consisted of a fore-man, two drillers, and two helpers. The men on this shiftwere expected to drill all the holes, as well as hoist all thedrilling equipment to surface.

The second shift was composed of two muckers and a fir-ing boss. This shift was expected to blast the four sump holesand clean up the muck generated.

The third shift was also composed of two muckers plusthe firing boss. They were expected to fire the remainingholes, clean up the rock, and leave the shaft ready for thedrilling shift. Using this system, it was possible to exca-vate at a rate of 3 feet per day. Overall advance, includinglining installation, was approximately 40 feet (12 metres)per month.

During this period of time in North America, nearly all theshafts were rectangular and timber-lined. In comparison,nearly all the shafts in Europe were circular and lined withbrickwork. The brickwork was generally installed from“walling stages” or “walling cradles” as they were sometimescalled. In that manner, the stage could be raised as the brick-work advanced. It is said that late in this period, a ProfessorGalloway adopted an improved walling cradle, which con-sisted of two floors 10 feet 6 inches apart, that allowed thesinkers on shaft bottom to continue operations while thewallers were working above them off the walling cradle orstage. It is probably from this invention that the term

Prior to 1600 1600–1800 1800–1900Drilling No Double jacking Large pneumatic drills

Blasting Fire quenching Black powder Dynamite and safety fuseMucking Hand Hand HandPermanent lining Wood Wood BrickProtection from ground falls Platforms in shaft Platforms in shaft Permanent brick liningHoisting Man-powered windlass Horse-powered windlass Steam-powered hoistsHoist rope Hemp Hemp Wire ropeVentilation Bellows Bellows Centrifugal fansWater handling Buckets Buckets Steam-powered pumpsWater control None None Freezing methodAverage advance rate 3 to 4 feet per month 3 to 4 metres per month 12 to 15 metres per month

Improvements in shaft sinking techniques

metallurgy


History of metal casting–Part 3by Fathi Habashi,Department of Mining, Metallurgical,and Materials Engineering,Laval University Casting of Cannons

With the discovery of gun powder around 1250 AD, European bellfounders turned to guns. During the sixteenth century, the productionof cannons increased as armies came to appreciate their destructivepower. As a result, monarchs became interested in casting cannons.For example, Maximilian I, the Holy Roman Emperor, established anarsenal 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 resultedin the use of bronze as a material for cannons. Early can-nons were cast hollow, using cores to create a rough butserviceable barrel that could be finished and smoothed byhand. However, the bores were often not round, whichcaused wide variations in range and accuracy because of thedifficulty 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 wascapable of boring cannon barrels from a solid casting. Themethod was time-consuming; however, it produced cannonswith round, smooth, and parallel bores. When the Dutch

Ordinance decidedto adopt his tech-nique in 1747,Maritz moved tothe NetherlandsState Gun Foundryin The Hague,Europe’s leadinggun producingfacility at the time.Maritz’s sons laterintroduced thetechnique toFrance and Spain.

Monge and castingof cannons

In the early daysof 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 ofartillery. Monge abandoned the use of clay in favour of sand to decreasecost and improve the quality of the casting. He established gunfoundries in churches and on farms throughout the French countryside,and instituted training programs intended to familiarize workers withthe techniques and skills needed to implement the new methods to be

Above A gigantic cannoncast by Krupp in Germany,on display at the Parisexhibition of 1867.

Right, clockwise from top left Casting ofearly cannons.

Wrapping the arbor withrope.

After applying loam to thepattern, the mould isreinforced with ironbands.

Baking the cannon mouldover an open fire.

Stages in the process:1) arbor, 2) winch,3) arbor and winchmounted on trestles,4) partially wrapped arbor,5) completely wrappedarbor.

metallurgy

November 2007 | 95

entire mould was then bound with iron bands and bakedover a fire; the whole assembly turned on its arbor untilcompletely dry. After cooling for a few days, the arbor wasremoved. A chaplet was used to hold the core in place. Thebreech was usually moulded separately and the whole jobwas assembled, breech down, in a pit before the furnace.

Boring of solid cast cannonsA solid cannon was firmly secured horizontaly in a

water-powered machine designed specifically for boring. Aniron boring bar with a steel cutting tool was advanced intothe bore of the piece as the gun blank was turned by themachinery. A series of cutting heads were used; the first wassmall and subsequent heads increased incrementally in sizeuntil the desired bore diameter was achieved. Boring typi-cally lasted for a period of days.

Boring cannons and the theory of heatIn 1798, while manufacturing cannons for the Bavarian

military, Count Rumford (1753-1814) observed that grind-ing used to hollow out the barrel produced huge amountsof heat, which continued to flow with the borings as long asthe grinding was maintained. According to the theory atthat time, the stress of rubbing surfaces together forcedsome caloric fluid to be pushed out from between theatoms, and it appeared as heat. Rumford, however, notedthat the piece of metal must have contained an apparentlyinfinite amount of caloric fluid. He therefore came to theconclusion that the friction of grinding set the internalinvisible microscopic particles in the metal in motion,resulting in heat emitted as atoms came into contact.

used in making cannons. France produced 7,000 pieces forthe army and navy in 1793-1794. Monge’s contribution tothe advancement of cannon production was recognized ona French stamp issued in 1990.

Iron cannonsBronze possessed greater tensile strength than iron and

could withstand bore pressures more readily when theweapon was fired. On the other hand, it was much moreexpensive than iron. This drove the research into improvingthe production of iron. In 1795, John Wilkinson (1728-1808), the iron master of Soho Works in Stoke-on-Trent inEngland, designed a small shaft furnace that became knownas a cupola in which he melted pig iron and other materialto produce cast iron of better quality. With these improve-ments in the quality of iron, bronze was gradually replacedby iron. His high-quality cannons were the reason for theBritish Navy’s superiority in battles.

The first cannons were the bombard type but these werelater replaced by barrel-type cannons that were bigger insize. The early projectiles used were stone balls. Then, in1373, iron shot came into use, but only to a small extentdue to the high cost; they became widely used around 1600.Explosive projectiles were later used.

Casting of hollow cannonsIn casting the early cannons, an octagonal piece of tim-

ber known as arbor was used, around which straw rope waswound. Loam was pressed into the straw and smoothed bya strickle board, forming the outside of the cannon.Trunnios were then applied and more loam added. The

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

Rumford’s work did not however kill the caloric theory. Itwas the physicist James Prescott Joule (1818-1889) who in1847 conclusively supported Rumford’s views—a turningpoint in the history of science.

Continuous CastingIron from the blast furnace was allowed to flow in sand

moulds prepared on the ground and left to cool. Whensolidified, the pigs were then removed and the mouldsreused. This process is no longer used because it involvesextensive manpower. Continuously moving castingmachines were then introduced; by the time the moltenpigs were moved from one end to the other, they were solid-ified and dropped away from the moulds in the form ofpigs, which were then used to make cast iron in the cupola.

The bulk of the pig iron is transferred in the moltenstate to the steelmaking plant. Steel was usually cast iningots and when solidified, it was removed and put in afurnace to be heated to a determined temperature beforetransporting it to the fabricating mills. This meant han-dling a batch often during the cooling step. Introducingcontinuous casting solved this problem in 1960s. In thisprocess, the molten metal is continuously fed from areservoir and is allowed to solidify rapidly in a mould sothat at any given time, there is only a small pool of moltenmetal present at the top of the ingot. As the solidifiedingot emerges, it is grasped by a set of rolls which regu-late its downward progress. The contraction of the freez-ing metal causes it to pull away from the mould walls.

metallurgy


Beneath the pinch rolls is an oxy-acetylene flame, which cuts theemerging ingot into convenientlengths. A few years later, thesame technique was introducedin the copper and aluminumindustries.

EpilogueMetals were cast by ancient

people to produce ornaments,primitive agricultural tools, orarrow heads for hunting. Theintroduction of copper, bronze,and later iron was so important inthe history of man that epochs arenamed Bronze Age and Iron Ageto emphasize the shift from theStone Age. The close ties betweencasting metals and pottery indi-cate that the two arts must havedeveloped simultaneously. It wasthe potter’s art of handling suit-able clays and their proper firingthat gave the foundry man thecrucible for holding molten metal.

Centuries later, when gun powder was discovered, cast-ing changed hands from monks and church officials, whowere casting bells, to monarchs, who became interested incasting cannons. In times of war, bells were usually confis-cated and cast into cannons. The artistic ornaments andstatues conserved in to museums, the gigantic bells, and themonstrous cannons that have been cast throughout historyare a testament to the skill of the metal founder. The newtechnology of continuous casting reflects the response ofindustry to the need for a fast and reliable method to satisfythe requirements of a developing society.

Suggested ReadingsAitchison, 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. Smithand 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 AD1900. 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 ExtractiveQuébec/Laval University Bookstore.

Knauth, P. (1974). The Metalsmiths. New York: Time-Life Books.

Leibbrandt, A. (2001). Civilization and Copper—The Codelco Collection. Santiago: CorporaciónNacional del Cobre.

Simpson, B.L. (1948). History of the Metal-Casting Industry. Des Plains: AmericanFoundrymen’s Society.

Tylecote, R.F. (1976). A History of Metallurgy. London: Metals Society.

CIM

Casting pig iron in ingots

One day we had a visitor,well, not exactly a visitor,but rather someone who

was doing a time study on us. Wenoticed that he was takingnotes but as he was a littleways behind us, we justassumed that he was doing

something that did not concern us.This went on for a few days. At onepoint I went to get powder from thepowder box that was located about300 feet from where we were work-ing. The box was red, constructedfrom wood, with a hinged top on itand a latch that was never locked.This was the case in the 1950s and1960s but later, dynamite waspacked in paper cartons. The boxwas able to hold about six to eightcases of dynamite, or by law nomore than 250 to 300 pounds atone time. Inside the box was awooden mallet and a wedge of fibermaterial. I picked up two cases ofdynamite, brought them to the rockface, dumped them on the floor, andas usual split them open with theshovel, all the while ignoring ourvisitor who was still writing. WhileRay Sam was cleaning out the holesby blowing them out with air, I wentto talk to our visitor who wasaround the corner. When I askedhim what he was doing, he seemedsomewhat puzzled at the question.He asked whether the shift boss hadtold us that he was doing a timestudy on us. He had not.

I told Ray about my discoveryand he was as surprised as I wasabout this man studying us. Wewere later given a lecture by theshift boss about having opened thedynamite with a shovel. We werenot surprised and knew where ithad come from.

Excerptc c

MINING IN CANADAa personal history

AN ONLINE MEMOIRE

INDUSTRY KNOWLEDGE

CIM Bulletin Abstracts

99 1st International Symposium on Fuel Cell Applications to MiningM.C. Bétournay

100 Selecting effective hydrogen production and delivery options for mining applicationsK.M. Curran

101 Industry requirements for introduction of alternate energies with emphasis onhydrogen fuel cellsF. Delabbio, D. Starbuck, A. Akerman, and M.C. Bétournay

102 Mine site hydrogen storage and delivery modelsM.C. Bétournay, G. Desrivières, D. Eastick, F. Delabbio, and K. Curran

103 Fuel cell aspects and future developments needed for miningA.R. Miller, D.L. Barnes, M.C. Bétournay, M. Laflamme, G. Desrivières, and F. Delabbio

104 Underground fuel cell loader design and performanceD.L. Barnes, O. Velev, B. Brown, P.M. Golben, G. Desrivières, and M.C. Bétournay

105 Environmental and ventilation benefits for underground mining operations usingfuel cell-powered production equipmentC. Kocsis, S. Hardcastle, and D. Eastick

106 Economic aspects to fuel cell mine applicationsR. Lacroix, M.C. Bétournay, M. Laflamme, A.R. Miller, and D.L. Barnes

107 Storage and safety issues of hydrogen as an energy vectorP. Bénard

108 Ensuring adequate safety when using hydrogen as a fuelD.A. Coutts

109 Exploration and Mining Geology JournalVolume 16, Numbers 1 and 2

110 Canadian Metallurgical QuarterlyVolume 46, Number 3

Peer reviewed by leaders in their fields

YOUR

GUIDETO

Complete CIM Bulletin papers are posted in theonline Technical Paper Library

www.cim.org98 | CIM Magazine | Vol. 2, No. 7

I N T R O D U C T I O N

The underground mining industry ismotivated to consider alternative powersystems for mobile equipment to that ofthe conventional diesel internal combus-tion engine, based on the need toimprove air quality, reduce coolingrequirements, reduce ventilation require-ments, and reduce greenhouse gas out-put. Based on the relatively small enginemarket that underground mining repre-sents, there is very little motivation forthe major engine suppliers to dramati-cally improve engine technology. Currentalternative options, including use ofexhaust filters, electrical systems thatrequire a trailing cable, etc., are alloptions but in no way do any meet allthe existing and future needs of vehicle

mobility, diesel emissions, waste heat, and greenhouse gasemissions.

Several mining projects have been successfully undertakento date to demonstrate the viability of hydrogen in undergroundvehicles and mining conditions. There now exists a broad rangeof expertise and experience in regards to this technology appli-cation and direction for its introduction in the mining industry.

The following papers were presented at the 1st Interna-tional Symposium on Fuel Cell Applications to the Mining Indus-try that was held at the CIM Conference and Exhibition in 2007in Montreal. It was sponsored by the CANMET Mining and Min-eral Sciences Laboratories, the Fuelcell Propulsion Institute, andthe Canadian Institute of Mining, Metallurgy and Petroleum.

The symposium program objective was to provide a clearstatus of technology application, scientific findings of projects,and promote discussion and input from, and exchangesbetween, all participants—national and international miningstakeholders, technology developers, research organizations, andpower industries.

The papers presented, plenary session, and round-table dis-cussions covered a number of strategic themes:

• Effective hydrogen production and delivery for mining opera-tions

• Safety and risk aspects for underground hydrogen powerapplication

• 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 establishedcontent and process for the industry’s drive to address the manyhurdles to be overcome prior to introduction of new technolo-gies, 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 ver-

sus 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 mining industry has previously and is presently support-ing the development of new technologies but further work isrequired prior to implementation. The introduction of alternateenergy technology requires a step-wise progression from applica-bility to the mining industry, to proof of concept testing in mines,to development of generic infrastructure, power systems, andregulations, to whole operating system studies (including produc-tion operation of fleets), to detailed studies of cost and risk ver-sus benefits.

The organizers hope that the next International Symposiumon Fuel Cells Applied to Mining will be able to provide all inter-ested parties with continued confirmation of hydrogen technol-ogy viability for underground mining and industry advancementtowards implementation.

Marc C. Bétournay, Chairman, 1st International Symposiumon Fuel Cell Applications to Mining

1st International Symposium on Fuel Cell Applications to Mining

November 2007 | 99

Selecting effective hydrogen production and delivery options for mining applications

Like many sectors, the mining industry may find benefitin revisiting all formats of energy supply to its operations, theefficiency of that energy in generating dedicated power, andconsidering alternate methods of energy delivery and use.This is especially viable in the context of trends to hydrogenand hybrid power that are taking shape within other vehiclesectors such as private vehicles and transit vehicles. Under-ground mining operations, in particular, have challenges asso-ciated with diesel-powered vehicles that result in increasedventilation volumes and fan power requirements in areaswhere these vehicles operate. These needs of increased ven-tilation affect the energy requirements in a mine and so, ifventilation can be reduced, some energy savings may be pos-sible.

Avoidance of any undesirable emissions from under-ground vehicles, especially because of their suspected harm-ful nature, offers advantages that can be leveraged against asimple economic comparison of the fuel value and relatedenergy costs and required infrastructure for the end user.Hydrogen, used as a fuel, offers benefits in the area ofreduced particulate and toxic emissions when it is used bothin an internal combustion engine and especially when theenergy of hydrogen is converted to electricity via a fuel cell.Both modes of energy conversion produce little else butwater, 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 anyend use application will have a strong effect on the specificeconomics and price stability for that product supply and theflexibility with which it can be used. The objective of thispaper is to present those variables that play a significant rolein the selection of the hydrogen production technology, witha particular focus on several typical mining applications.Since hydrogen is an energy carrier and not a source, the sup-ply chain chosen for hydrogen transmission plays a significantrole in the economic balance between hydrogen and other

fuels of choice for use in a mine. This paper examines theeconomics associated with four portions of the hydrogen sup-ply chain for three commercially available methods for hydro-gen supply. The four elements of each supply chain are:production, distribution, storage, and dispensing. The threemethods for supply discussed include gaseous tube trailersdelivered product, gaseous hydrogen onsite productionthrough electrolysis, and liquid hydrogen delivery.

The variables examined include gas requirements interms of flow-rate and demand profile, overall volumetric con-sumption, level of interruption tolerable, gas pressure, andquality needs. Also examined are the effects of geography interms of primary energy supply available as well as existinghydrogen sources, developed or not. The role of these factorsin the selection of an appropriate supply chain capable ofsupporting mining applications that use hydrogen as anenergy carrier is illustrated with a typical mining applicationscenario drawn upon in the form of a case study.

The paper concludes that the selection of a hydrogensupply mode is a complex process that must consider all ele-ments of the supply chain in terms of needs of the end user,defined by flow rate, pressure, and purity. Other parametersthat must be considered include the cost of energy both foronsite production and the cost transport of any product deliv-ered, related to proximity to existing sources of hydrogen.Consumption patterns on a daily and hourly rate basis, deliv-ery pressure, and duration of demand will affect capitalexpenditures, while energy costs and durability of equipmentwill affect operating costs. Electrolytic hydrogen productiongains advantages most when consumption is consistent andsystem sizing is matched to flow rate demand. Gaseoushydrogen offers flexibility in lower flow situations or sporadicrequirements, while liquid hydrogen offers the most economicsupply method when distance from the liquid source is man-ageable with transport by bulk tanker and especially whenproduct demand exceeds 40 kg/day.

K.M. Curran, Air Liquide Canada Inc., Ottawa, Ontario

executive summaries


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Industry requirements for introductionof alternate energies with emphasison hydrogen fuel cells

There are presently several issues that the mining indus-try is facing, such as underground air quality, deep mining,and greenhouse gas emissions, which could be addressed bythe application of alternate energies.

The underground mining industry is motivated to con-sider alternative power systems for mobile equipment to thatof the conventional diesel internal combustion engine, basedon the need to improve air quality, reduce cooling require-ments, reduce ventilation requirements, and reduce green-house gas output. Based on the relatively small enginemarket that underground mining represents, there is very lit-tle motivation for the major engine suppliers to dramaticallyimprove engine technology. Currently, the use of exhaust fil-ters, electrical systems that require a trailing cable, etc., are allalternative options but in no way do any meet all the existingand future needs of vehicle mobility, diesel emissions, wasteheat, and greenhouse gas emissions.

Mining companies are focused on the extraction of ore,safely, environmentally, and economically. To maximize theseaspects, given the size of the mining industry, the companiesmust utilize and adapt technologies from other industries thathave greater critical mass, such as above ground energy sys-tems.

This paper discusses the range of aspects that need to beaddressed before alternative energy systems, such as hydro-gen fuel cell technology, can progress to the next stage ofreview/testing that, depending on results, could lead to largerscale underground usage in the future.

As with any industry, before the underground miningindustry can utilize a new technology such as an energy sys-tem for mobile equipment, a large number of aspects must beconsidered as part of a “change management” or “gated”approach that would include: health and safety risks, regula-tory, system fit within mining process, technical risks, operat-ing and capital costs, etc. Mining companies have shown onnumerous occasions that they are willing to support thedevelopment of alternative energy systems once all risks havebeen reduced to acceptable levels. An example of this sup-port following a risk management process is the hydrogenfuel cell locomotive that was demonstrated at the CampbellMine.

F. Delabbio, Rio Tinto, Brisbane, Queensland, Australia,D. Starbuck, Newmont, Carlin, Nevada, United States,A. Akerman, CVRD Inco, Copper Cliff, Ontario, andM.C. Bétournay, Mining and Mineral Sciences Laboratories,CANMET, Natural Resources Canada, Ottawa, Ontario

Several aspects must be considered by the industry inany drive to introduce new technologies within the context ofa producing underground mine. This paper presents severaloperational and support aspects that will evaluate the rele-vance of alternate energies, with emphasis on hydrogenpower systems: operational drivers, commercial supply oftechnology, support system requirements, health and safetyoverall and at all stages, capital and operating costs, mineproduction strategies, corporate philosophy to technology,and the role of governments supporting and participating intechnology application and regulatory development.

There are many hurdles to overcome prior to the intro-duction of new technologies such as hydrogen-propelled andpowered underground equipment. The mining industry haspreviously and is presently supporting the development ofnew technologies but further work is required prior to imple-mentation. The introduction of alternate energy technologyrequires a step-wise progression from applicability to the min-ing industry, to proof of concept testing in mines, to develop-ment of generic infrastructure, power systems andregulations, to whole operating system studies (including pro-duction operation of fleets), to detailed studies of cost andrisk versus benefits. We are now at the proof of concept test-ing stage and poised to enter the development stage.

At some point in time, corporate decisions will be takenon the adoption of alternate energies. These decisions willhave to be based on performance, availability and participa-tion of technology developers, regulatory agencies and sup-port organizations. Infrastructure decisions must be made atthe mine design stage, which begins several years prior togoing into production. Similarly, extensive studies will berequired to modify existing operating infrastructure to adoptnew energy sources.

The timeframe for major implementation of alternateenergies is therefore long term. The participation of all stake-holders will be required, as will be the funding and supportfrom governments.

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executive summaries

November 2007 | 101

Mine site hydrogen storage and deliverymodels

lish system design and operation, safety features, risk controlmeans, and mine operational requirements. The infrastructurewould be designed, operated, monitored, and used for sup-porting hydrogen vehicle and stationary applications.

As a starting point, an initial study reviewed possibleoptions for production, storage, and delivery of hydrogen forunderground equipment, including the assessment of eco-nomical, operational, technical, and health and safety risks.The delivery of choice would be from a surface fuel reformeror delivery from remote plant production, surface storagewould be in a compressed mode and the distribution ofhydrogen through piping.

From this information, a demonstration project plans toconstruct surface and underground mine infrastructure andcarry out research to provide norms and data for basic oper-ational requirements. This paper outlines the selection basisfor the infrastructure among possible storage and deliveryoptions and the content of the phases.

The figure presents a schematic view of the infrastruc-ture planned.

This theoretical study has the following objectives:• Define the functional requirements for the design of a

hydrogen storage and delivery system for surface andunderground use.

• Define the basic engineering specifications and drawingsrelated to the functioning of hydrogen infrastructure foran underground mine and the related ventilation andsensor requirements.

• Establish construction specifications for a model minehydrogen infrastructure system.

• Perform a quantitative risk assessment and field hazardevaluation on the hydrogen infrastructure as designedfor NRCan’s Experimental Mine.

• Establish risk control means, emergency response proce-dures and infrastructure, and site review requirementsand schedule; the infrastructure design will not permitcredible leaks for significant periods of time larger thanthat permitted by the ventilation available.

The infrastructure will be planned and built according toexisting standards. A panel of national and international peerreviewers will evaluate the content, progress, and results ofthe project, as well as basic infrastructure engineering specifi-cations, generic plans, technical drawings, and the plan for siteconstruction. An industrial committee will review the projectfrom an industrial application and operational feasibility basis.

M.C. Bétournay, Mining and Mineral Sciences Laboratories,CANMET, Natural Resources Canada, Ottawa, OntarioG. 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, andK. Curran, Air Liquide Canada Inc., Ottawa, Ontario

executive summaries


With fuel cell mining applications demonstrated, it isappropriate that alternatives for delivering hydrogen tounderground equipment be considered. In particular, it is crit-ical that storage and delivery systems of hydrogen for routineuse be designed and tested, and that related capital andoperational costs are available for possible extrapolation formines in the future. Hydrogen system aspects to be reviewedinclude the following, fully vetted and tested to meet basicoperational requirements:• All facets of hydrogen use and related risks be defined

and hazards mitigated.• Availability and distribution of hydrogen be as depend-

able as current mine vehicle energy sources and station-ary application energy sources within the context ofmine extraction systems.

• Operating requirements are simple and reliable.• Comprehensive mine regulations are in place.

Mine site infrastructure for storage and delivery ofhydrogen must be standardized and acceptable for routineand safe industrial use before fuel cell technology is adoptedas a major power source. As an essential initial step fordemonstrating this requirement and to effectively introducethis technology, mine hydrogen infrastructure must be vali-dated in the context of an operating mine. This would estab-

Schematic view of hydrogen storage and delivery mine infrastructure components

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Fuel cell aspects and futuredevelopments needed for mining

Several proof-of-concept projects have been successfullycarried out to demonstrate the applicability of fuel cells inunderground mines. Several other projects and studies arerequired to provide practical developments for hydrogen fuelcell technology for the mining industry.

The benefit of increasing hydrogen storage results inlonger in-service periods. Metal hydrides represent the safelow-pressure and high-storage means, but at high cost andlimited lifespans in service. Hydride storage capacity is notanticipated to improve in the medium term, and using com-pressed hydrogen will still require frequent refuelling or con-tainer swapping, not viable from an operational perspective.

The industry requires that a lower cost method of stor-age that is rupture-safe be available with capacities near thatof metal hydrides. High-pressure metal hydride storage, usingless metal hydride, could provide this possibility. However,there is currently insufficient testing of vessels and hydrogenstorage-release with large pressurized hydride quantities.

Fuel cells will permit the simplification required for safemine automation because they are solid state devices.Improved reliability and power loss reduction could be possi-ble by eliminating moving parts (drive shafts, transmissions),replaced, for example, by wheel motors. Power plant andpower train electrification will greatly enhance “intelligent”controlling ability and information exchange between thevehicles and their control base in tele-remote operations.

Power density becomes an important issue for under-ground production vehicles; an improving trend is expected tocontinue for fuel cells. Under acceptable vehicle designs andweight requirements, this increased power can supply largerhydraulic pumps to power larger payload capacities, andlarger traction motors for more efficient muck retrieval fromdraw-points and less expenditure of energy.

Basic fuel cell power plant component functions will notsignificantly be improved upon. What can be improved in thenear term will come from modifying system design and inte-gration, e.g. a major fuel cell manufacturer offers a powermodule that includes the fuel cell stacks, hydrogen purging,membrane humidification, and cell voltage monitoring, all inan enclosure with convenient connections. The systemdesigner is left with less critical balance-of-plant design such

A.R. Miller, D.L. Barnes, Vehicle Projects LLC, Denver, Colorado,USAM.C. Bétournay, M. Laflamme, Mining and Mineral SciencesLaboratories, CANMET, Natural Resources Canada, Ottawa, Ontario,G. Desrivières, Mining and Mineral Sciences Laboratories,CANMET, Natural Resources Canada, Val-d’Or, Quebec, andF. Delabbio, Rio Tinto, Brisbane, Queensland, Australia

as the air management and cooling systems and the overallcontrols, communication, and display. This will lead toincreased standardization and reliability, increased powerdensity, and decreased costs.

An important modification that can be brought to powerplant architecture for near-term improvement will be in thearea of hybrid design, using fuel cells and another powersource 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. Opti-mization of the state of charge of the batteries versus use offuel cells would have to be ongoing through programmablelogic controllers.

To maximize the potential value from an orebody, themine must be efficient and overall cost-competitive. Provid-ing miners with the most appropriate equipment is critical forthis. Therefore, in the design phase, the mine layout needs totake into account the orebody and the equipment optionsavailable so machine production capacity can be properly utilized.

Given the possibility of having a higher power rating andproductive capacity for smaller loaders, it may become moreeconomical to look at more continuous production in largerdeposits using a focus on one drawpoint, as opposed to theconventional batch process. Larger loader payload, andsmaller sized loaders and headings (lower development cost)would surpass the economics of truck ramp haulage (and theneed for trucks) and make loader dumping to ore passes onone 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 bedependent on costly electrical infrastructure hook-ups. Newheadings can be continued uninterrupted with take-off poweravailable for fans and other equipment that could easily usethe mobility of fuel cell power vehicles on main and sub-lev-els. Smaller mines with widely separated extraction areaswould also benefit.

executive summaries

November 2007 | 103

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Underground fuel cell loader design and performance

Underground mining is the most promising applicationin which fuel cell vehicles can compete strictly on economicmerit. It faces challenges from the health and safety deficien-cies of trackless equipment such as diesel particulate matter.Furthermore, it must expect an energy cost and alternativescenario much different than its current dependability ondiesel fuel.

Building on a successful construction and testing of anunderground fuel cell mine locomotive, a 160 kW, 23 metricton fuel cell battery hybrid mine loader has been developed.The base vehicle consists of an R1300 Caterpillar™ diesel-powered 165 hp (123 kW) 3.7 yd3 loader (see figure).

A number of mine operation requirements were used todesign the power plant, its capacity, the electric motors, andhydrogen storage for a 61⁄2 hour operating period (baseline fora 10-hour shift). The unit was designed and tested to oper-ate under demanding conditions: a 15% ramp incline, shockand vibration (commonly in the 2 to 8 g range with maximareaching 50 g), and variable air quality conditions featuringdust and diesel particulate matter concentrations.

Based on measured industry duty cycles, the loader pow-erplant uses nominally 90 kW PEM fuel cell stacks supple-mented by a 70 kW transient-power nickel metal-hydride(NiMH) battery set. The hybrid design was chosen because ofhigh but narrow power peaks in the duty cycle (30 to 60 sec-onds long) and the ability to recover some of the vehicle kineticand potential energy through regenerative breaking. Given therepetitive duty cycle of loading and dumping from one minelevel to another, activity for one shift would require 14 kg ofstored on-board hydrogen. In comparison to the single motorfor hydraulic and traction duties, separate traction and hydraulicmotors will give improved performance. To achieve refuellingtime constraints, a special cooling system was applied to themetal hydride storage allowing for hydrogen refuelling in thesame timeframe as for diesel loaders, 10 to 15 minutes.

The power plant and power delivery system is a complexnetwork of several micro-controllers. The loader user inter-face controller is responsible for overall control of the vehicle.

It takes commands/display information from/to the user. Thefuel cell engine controller (FCEC) is responsible for the controlof the fuel cell power plant components (air compressor,water pump, data acquisition system, etc.). It will maintainthe state-of-charge of the battery pack in an optimum range.The FCEC will take commands from the user interface com-puter and will send information on the state of health of thepower plant, the battery pack, and the various DC/DC deviceson the power bus. It will also maintain the temperature in themetal hydride bed so that the pressure of the delivered hydro-gen is within safe limits for mining operations. Hydrogenusage and amount of fuel left in the metal hydride tanks willbe closely monitored and reported to the user interface con-troller. A multi-step process was used to verify proper opera-tions of individual components.

Prior to underground demonstrations, the fuel cell mineloader has gone through a debug, tune, and test plan. It iscurrently undergoing surface performance tests that will becompared against baseline tests performed on the dieselR1300. Major subsystems, including the power module, cool-ing, propulsion, hydraulics, and supervisory control, will beadjusted for performance optimization. The performancetests will address the overall vehicle performance and willinclude power response, acceleration and deceleration rates,braking, weight distribution, lift/tilt force, steering, stability,cavitations, and productivity testing. All testing will result ina fully functioning loader ready for underground where a fullyautonomous stand-alone monitoring system will be installedon the unit and all power-related data; as well, speed andhydraulic pressures will be recorded. The unit will undergotesting in two or three different underground productionmines with several production cycling routes in each mine.

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

executive summaries

Rear view of fuel cell loader power plant showing one hydride bed (forefront)

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Environmental and ventilation benefits for underground mining operations using fuel cell-powered production equipment

Over the last few years, a multi-faceted feasibility studyevaluated the introduction of hydrogen fuel cell-poweredequipment into underground mines to replace diesel engine-powered equipment. The analysis has shown that under nor-mal operating conditions, fuel cells could at the very least bean environmental and health benefit by eliminating combus-tion engines and their unwanted by-products.

They could also generate significant reductions in theamount of ventilation a mine needs to supply when comparedto dieselized operations; this would further decrease a mine’senergy consumption, its associated greenhouse gas impact,and also reduce a mine’s significant ventilation-associatedcosts. Fuel cell-powered equipment also has the advantage oflower noise and heat production compared to its equivalentdiesel-powered counterpart. The degree to which fuel cellscan generate ventilation benefits in underground minesdepends upon a number of operational parameters and mine-specific qualifiers, such as current ventilation control or man-agement, mine depth, inherent dust conditions, and minimumvelocity requirements.

However, another major consideration in the introduc-tion of fuel cells in underground mines will be the safetyrequirements associated with diluting and removing thepotentially explosive hydrogen in the event of a gas leak. Inoutside surface applications, it is possible to use dispersion,buoyancy, time, and lack of ignition sources as mitigating fac-tors in deriving a low risk of an explosion. In undergroundoperations these factors change. Dispersion and buoyancy arelimited, time may not be available, and in non-coal mines,ignition sources are not typically controlled. When a hydrogenleak occurs, the availability of sufficient ventilation to diluteand effectively remove the gas will be critical; consequently,ventilation may be the prime risk controlling factor.

This paper evaluates the potential benefits of replacingdiesel engines with fuel cells in powered production equip-ment, discusses the mitigating qualifiers that could limit ven-tilation savings, and evaluates solutions to retain andmaintain an additional ventilation capacity in the event of anemergency situation such as a hydrogen leak from the fuelcell stack or its distribution system.

C. Kocsis, S. Hardcastle, Mining and Mineral SciencesLaboratories, CANMET, Natural Resources Canada, Sudbury,Ontario, andD. Eastick, HATCH, Sudbury, Ontario

This study has shown that if fuel cells were to replace thediesel engine of the primary production equipment in Cana-dian underground metal mines, less ventilation would berequired. The degree of ventilation reductions in the six minesanalyzed range from 9% for a future deep scenario to 25%for current metal mining scenarios. On combining all the ven-tilation cost components, primary and auxiliary fans, heatingand cooling, the cost reductions varied from 20% for a futuredeep scenario to 38% for the same mine under its currentconditions.

It has also been shown that similar order savings may beachieved by other means for specific mines, such as changingthe heating fuel, ventilation demand controls, or as a result ofchanging to quality-based diesel regulations. However, thisdoes not negate the advantages of fuel cells. The savings canbe incremental but other limitations imposed by such consid-erations as a minimum air velocity, blast clearance, or dustconditions may be reached before the full combined potentialbenefit is reached.

One of the most dramatic benefits was the reduction inGHG emissions, which range from 27% for a future deep sce-nario to 41% to 43% for current operations. A major compo-nent of these lowered emissions is the reduced consumptionof diesel fuel.

One particular challenge to the introduction of fuel cellsunderground is the delivery, storage, and dispensing of hydro-gen to fuel the mining equipment at underground refuellingstations. Large financial commitments may be required inorder to provide and maintain a spark-free environment alongthe hydrogen distribution lines, refuelling stations, develop-ment and production workings, as well as throughout theentire mine. Failing this, large volumes of air would berequired, potentially larger than that currently supplied for thedilution of diesel fumes, to ensure leaks are quickly diluted to50% of the LEL. These volumes could be technically impracti-cal and uneconomical.

executive summaries

November 2007 | 105

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Economic aspects to fuel cell mine applications

Canadian mines are highly mechanized and pre-dominantly use diesel equipment in primary ore han-dling. The recognition that diesel emission particulatematter (DPM) could be carcinogenic is of concern to allindustry stakeholders. Fuel cell technology provides aclean solution, which will allow for significant reduc-tion in underground ventilation dilution requirements.Since underground ventilation represents about 40%of mine electrical consumption, significant savings andthe elimination of DPMs would be realized. Otherissues, such as reduction of greenhouse gas emissionsand simplification of maintenance and tele-operationof production, would also be registered.

In order to define the economic advantages ofusing hydrogen fuel cell vehicles, a detailed study of operat-ing and capital costs associated with underground loadersand power supply infrastructure has been carried out. A com-parison of operational and capital requirements for differenttechnologies can best be carried out and interpreted using arepresentative case study. This article considers informationrelated to a medium-sized mine producing 4,300 tons per dayin Québec, using a work schedule of two shifts of 10 hourseach per day. The shallow mine operates 624 shifts per yearand its ventilation system runs an average of 144 hours perweek with an airflow of 387 m3/s. The diesel loader is an8 yd3 payload capacity model; the fuel cell loader reference isthe Caterpillar R1300 fuel cell-hybrid version, first to be pow-ered by fuel cell technology from which an 8 yd3 fuel-cellhybrid cost will be extrapolated.

The results show that for a typical medium-sized mine,operating costs and infrastructure costs are less for the fuelcell option versus diesel (see table). The reverse occurs forcapital costs owing to the currently higher cost of fuel cellsversus diesel engines. This disparity is expected to decreasegiven the decline in price associated with fuel cell technologyadvances. Related market issues for fuel cell manufacturersare also presented. Despite the difference in cost, theresources and mine infrastructure required to operate under-ground loaders, and base design of the mine loader, is similarfor diesel and fuel cell versions. The industry therefore does

not have considerable changes in the manner in which itoperates its production equipment.

Cost-benefit differences between diesel and fuel cells areonly one of the economic considerations in replacing a main-stay technology such as diesel internal combustion engines formine extraction. There are several market issues industry needsto understand before it routinely applies fuel cell technology.

The first is the significant rate in technology advancementthat has existed and is expected to continue. This has consider-able ramifications with respect to the availability of manufac-turer support involved in short-term technology renewal versusthe requirement to power mining vehicles with long-term serv-ice expectation. If the technology cannot be supported becauseof the unavailability of technology-sensitive parts (e.g. elec-tronic parts) or if a warranty for the power plant cannot be pro-vided beyond a few thousand hours of operation, anothermeans of making the technology attractive is necessary.

While the underground mining market is smaller thanthe automobile market, the mining industry expects that tech-nology manufacturers will carry fuel cell and power plantproducts to power the range of vehicle types used. The indus-try also requires that sufficient numbers of power plants willbe produced in the shorter term to meet conversion of currentdiesel vehicles.

Economics is a big driver in adopting a new technology,but dependability, in the largest sense, including testing andregulatory considerations, will also have to be addressedbefore fuel cells will be accepted. Industry must also remaintechnologically relevant by considering using fuel cells to joina trend that is already underway in other important sectors,such as surface vehicles.

R. Lacroix, M.C. Bétournay, Mining and Mineral SciencesLaboratories, CANMET, Natural Resources Canada, Ottawa, Ontario,M. Laflamme, Mining and Mineral Sciences Laboratories,CANMET, Natural Resources Canada, Val-d’Or, QuébecA.R. Miller, and D.L. Barnes, Vehicle Projects LLC, Denver,Colorado, USA

executive summaries


Table 1. Annual operating cost comparison

Diesel Fuel Cell Difference betweenHybrid Diesel and Fuel Cell

Hybrid

OperationMaintenance (LHD) $2 ,090,440 $2,066,500 $23,940Fuel (8 yd3 LHD) $412,300 $847,400 $(435,100)Fuel tanks maintenance $20,000 $(20,000)Cooling of hydride beds $82,600 $(82,600)Sub-total (operation) $2,502,740 $3,016,500 $(513,760)VentilationHeating $1,033,600 $846,300 $187,300FansAuxiliary $619,300 $494,200 $125,100Primary $541,900 $300,500 $241,400

Sub-total (fans) $1,161,200 $794,700 $366,500Sub-total (ventilation) $2,194,800 $1,6401,000 $553,800Total $4,697,540 $4,657,500 $40,040

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Storage and safety issues of hydrogenas an energy vector

The challenge of satisfying ever-rising global energyneeds in the face of depleting fossil fuel resources, coupledwith an increased awareness by the public of the environmen-tal impact of our energy system, have brought attention tothe possibilities of using hydrogen as an energy vector in aclean and renewable energy system.

To achieve penetration on the energy market, hydrogenmust overcome obstacles in the areas of storage, safety, andinfrastructure. These constitute recurring issues that propo-nents of hydrogen demonstration projects have to face. Thestorage issue is closely linked to recurrent costs and immedi-ate performance issues, and safety to acceptance of the tech-nology by end-users and particularly by local jurisdictions.

One of the most important considerations is the onboardstorage of hydrogen for transportation applications, wherelarge performance gaps exist between the current state of thetechnology and user expectations. In order to develop anddemonstrate viable hydrogen storage technologies for cars, aset of gravimetric and volumetric system targets have beenproposed by the US Department of Energy, based on achiev-ing a driving range of 500 km for a hydrogen-powered vehi-cle. A factor of 2 to 3 improvement in both hydrogen storagecapacity and energy density is needed, along with severalother performance goals.Another key issue is safety.Althoughsome of the safety issues can be arguably assigned to misper-ceptions, hydrogen has specific properties that have to beaddressed, particularly in confined geometries where the riskof hydrogen detonations becomes an issue.

In this paper, an overview of storage and safety issuesand possible solutions are presented. Notably, recentadvances in storage of materials discussed are and currentactivities on hydrogen safety within the context of establish-ing a hydrogen infrastructure are discussed.

Conclusions are that of the technical barriers to thedeployment of hydrogen energy technologies, storage andsafety concerns are most often cited as the most critical. Thestorage densities of classical storage technologies such ascompression and liquefaction are still far from the goals of

P. Bénard, Institut de recherche sur l’hydrogène, Université duQuébec à Trois-Rivières, Trois-Rivières, Québec

the Department of Energy, and it is difficult to see how theycould be met. A promising alternative relies on the chemicalor physical binding of hydrogen with other elements, orthrough the chemical storage of hydrogen in organic liquids.Some of these advanced storage methodologies already haveniche applications (such as metal hydrides in portable appli-cations and submarines), but none of them has yet met all ofthe ambitious DOE requirements for cars. Classical storagetechnologies such as compression and liquefaction are not,however, show-stoppers for technology deployment, depend-ing on the application.

Acceptability by the public and local jurisdiction verymuch hinges on the risk or the perception of risk of using anunfamiliar fuel such as hydrogen, which must be used withthe same caution as when handling any fuel. Comparativeanalyses of hydrogen energy systems with other fuels such asmethane and propane do not show that hydrogen representsa particular risk when used in refuelling stations, for example.Using hydrogen in confined areas must, however, be donewith caution due to the propensity of hydrogen releases toflame acceleration. Safety assessment of hydrogen energysystems must take into account the specific properties ofhydrogen, which may be beneficial in terms of dispersion rateor detrimental in terms of ignitability. Such analyses are ham-pered by the limited data available on failure rates of compo-nents and issues such as the probability of igniting ahydrogen release. The storage medium plays an integral partin safety analysis: storing hydrogen as a liquid or a gas resultsin very different dispersion behaviour, and using solid statestorage technologies may present new challenges from thatperspective in terms of toxicity and flammability.

executive summaries

November 2007 | 107

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Ensuring adequate safety when using hydrogen as a fuel

Demonstration projects using hydrogen as a fuel in vari-ous industrial and non-industrial applications are becomingvery common. Often, these projects rely on project-specificrisk evaluations to support project safety decisions. This isnecessary because regulations, codes, and standards (here-after referred to as standards) are just being developed. Thispaper reviews some of the approaches being used in theseevolving standards and techniques that demonstration proj-ects can implement to bridge the gap between currentrequirements and stakeholder desires.

Current efforts to establish appropriate safety levels forthe use of hydrogen as a fuel involve many technical organi-zations. The standards that are being prepared to addresshydrogen safety contain a mix of performance-based and pre-scriptive requirements.

The prescriptive-based language prescribes specificdesign solutions. Examples of prescriptive requirementsinclude:• 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 rateabove a defined value.

Performance-based requirements can take the form of:• “A Failure Modes and Effects Analysis (FMEA) or equiva-

lent reliability analysis intended to identify failures whichhave significant consequences affecting the fuel cellpower system safety, shall be submitted to the testingagency for evaluation.”

• “The device shall be designed and constructed to avoidany reasonably foreseeable risk of fire or explosionposed by the hydrogen generator itself or by the gases,liquids, dust, vapours, or the other substances producedor used by the device.”

Such wording implies that the manufacturer or projectmanager must produce and document an acceptable level of

risk. If accomplished using a comprehensive and systematicprocess, the demonstration project risk assessment can easethe transition to widespread commercialization.

The performance-based language is being used for sev-eral reasons, including: (1) concern that establishing specificdesign solutions too early will stifle invention; (2) sparse per-formance data necessary to support selection of designapproaches; and (3) a risk-adverse public that is unwilling toaccept losses that were incurred in developing previous pre-scriptive design standards.

Compliance with performance-based requirements mustbe done using a well-founded technical approach. In addi-tion, for many demonstration projects, the standards are notfully evolved. As such, it is necessary to supplement the exist-ing requirements with risk-based decisions. The paper pres-ents several techniques that may be used to support suchdecisions and support performance-based designs. Theapproach permits evaluation of multiple demonstration proj-ect risks that are associated with proof-of-concept projectsfor the mining industry. These include: safety risk, project risk,and fiscal risk. In managing the safety risk, a five-functionprocess, which is derived from Integrated Safety Management(ISM), is recommended. The five functions (define the scope ofwork, analyze the hazards, develop and implement controls,perform work, encourage feedback and continuous improve-ment) are illustrated in the figure. The objective of ISM is tosystematically integrate safety considerations into manage-ment and work practices at all levels.

The paper also presents a method that demonstrationprojects, such as those planned for the mining industry, canimplement that will satisfactorily demonstrate compliancewith evolving performance-based requirements, bridge gapswhere existing standards don’t provide coverage, and prop-erly manage safety risk. The techniques, if properly imple-mented, can then reduce both project and fiscal risks.

D.A. Coutts, Washington Group International, Aiken, SouthCarolina, USA

executive summaries


Functions of integrated safety management

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Exploration and Mining Geology JournalVolume 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 vol-canogenic massive sulfide ores and associated hydrothermal alteration in the Archean South Stur-geon Lake caldera complex. The most voluminous and persistent hydrothermal venting and massivesulfide deposition occurred along synvolcanic rifts and grabens associated with faults and tectonicfissures that created permeable fracture zones deep enough to access the underlying hydrothermalreservoir. 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 varyaccording to the amount and type of tectonic movement. In texturally uniform footwall rocks, the dis-tribution of alteration zones was controlled by the morphology of the structural conduit. Some cross-cutting synvolcanic structures, alteration zones, and intrusions appear as stratiform units at thepresent 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 Pb-Zn-bearing vein system. Thin section examination shows that much of the fine-grained quartz is pres-ent as elongate prisms. Deposition of the fine-grained sediment accompanies normal in situ drusiformgrowth of quartz and other vein minerals. It is argued that much of the suspended silica was presentas quartz at the time of deposition or was converted from amorphous silica almost immediately afterdeposition. Hydrothermal sediments and their distribution potentially provide information on flowdirections and velocity in veins. Plugs of sediment obstruct vertical flow and lead to local flows withlarge horizontal components. It is shown that sedimentation features occur in other deposits and caninvolve other minerals. If the features seen here can be scaled up to the size of major veins, they mayresult 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 Sci-ences, 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 YazdProvince in central Iran. They are located within the central Iranian volcano-plutonic belt, formedabove the collisional convergent margin of the Iranian lithospheric plate from the late Eocene to theMiocene. This paper discusses the geochemical characteristics of the igneous rocks, and 40Ar/39Argeochronology of plutons and alteration phases associated with the Darreh-Zerreshk and Ali-Abaddeposits. The deposits are spatially associated with igneous complexes that consist of older and bar-ren granites intruded by intermediate-composition granitoids. Porphyritic diorites, quartz monzodior-ites, and granodiorites show enrichment in light rare earth and large-ion lithophile elements,

depletion in middle rare earth elements, and have nonegative Eu anomaly. These intermediate-compositiongranitoids were derived from melting of the uppermantle or lower crust, and their differentiation wascontrolled partly by fractionation of hornblende.

emg abstracts

November 2007 | 109

Excerpts taken from abstracts in EMG, Vol. 16.Subscribe—www.cim.org/geosoc/indexEMG.cfm


Canadian Metallurgical QuarterlyVolume 46—Number 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 wasstudied with the objective of recovering residual bitumen from Athabasca oil sands froth treatment tailings. Itwas 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 offree multivalent metal cations through complexation by organic acids was considered the principal mechanismfor preventing bitumen-quartz coagulation as a consequence of increased electrostatic repulsion between bitu-men and quartz.

Characterizing Frothers Using Water Carrying RateP. 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 bybubbles into and through the froth. The amount transported (entrained) depends on bubble size, gas rate andthe subject of this paper, frother type. To isolate the effect of frother type from that of bubble size, gas holdup isused as the correlating variable. It is shown that the common frothers can be grouped into four families basedon the water carrying rate-gas holdup relationship.

Effect of Phosphate and Fluoride on the Flotation of Aluminum-Silicates with Cationic CollectorY.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 byflotation. Micro-flotation tests show that sodium hexametaphosphate has a stronger depressing power on dias-pore than sodium fluorosilicate at pH 6.5 while using dodecylamine chloride as a collector. Zeta potentials ofdiaspore and silicate minerals become more negative in the presence of both sodium hexametaphosphate andsodium fluorosilicate. Fourier transform infrared spectroscopy studies show that sodium hexametaphosphateinteracts 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 MeasurementsJ. 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 thispaper. In the case of the edge surface, the zeta potential increases at higher pH values which can be attributedto the hydration of surface magnesium ions. The differences in the hydration of the basal plane and the edge oftalc are revealed from molecular dynamics (MD) simulations. Improved quality of the edge surface was achievedby sandblasting (erosion with alumina) and research regarding the characteristics of this edge surface is inprogress.

Characterizing Frothers Using Gas HoldupF. 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. Ninesurfactants with a range in chemical structures were selected and tested in a bubble column instrumented tomeasure gas holdup and superficial gas velocity. A correlation between frother type and gas holdup was

cmq abstracts

observed: for alcohols, gas holdup increases with hydrocarbon chain length and the effect is the same whetherthe chain is branched or straight; for polyglycols, gas holdup increased with the number of propoxy groups. Theranking by gas holdup gave the same result as other, more complex frother characterization techniques.

Coal and Potash Flotation Enhancement by Use of Clay BinderD. 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 toevaluate the performance of a clay binding agent developed by Georgia-Pacific Resins, Inc. in enhancing coaland mineral flotation performance. Mechanical and column flotation tests were carried out using coal andpotash 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 enhancedflotation efficiency under different conditions. The required binder dosage and conditioning time were about0.45 kg/t and 0.5 to 1 minutes, respectively. More significant improvements in process performance wereobserved 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 estab-lished. However, analysis of available data reveals that the bubbles are important by and large because they arethe primary means of transportation of flotation agents to the points of bubble-to-particle attachment. The com-mon view is that bubbles attach and lift hydrophobic particles to a froth layer. The thermodynamic analysis pre-sented in this paper leads to the conclusion that the particles which become hydrophobic during theparticle-bubble collision and attachment can also be captivated by bubbles.

Solvent Layer Thickness on Bubbles of Different Size Blown in AirH.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 ofhigh solvent specific surface area and ease of phase separation. The thickness of the solvent film is of practicaland fundamental interest but difficult to measure directly in the process itself. As an approach, interferometrywas used to measure the time dependent thickness of a film formed on an air bubble blown in kerosene-basedsolvents. The decrease in film thickness is measured over time. To illustrate, for a 20 mm diameter bubble blownin LIX/kerosene (1:3) the initial thickness was ~ 3 µm which decreased over 10 minutes to a final rupture thick-ness 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 TailingsX.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 todetermine the most effective treatment and deposition processes to increase reclamation options, water reuseand 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 transi-tion and marine ore tailings. On the other hand, new processes including Coagula-tion-Flocculation-Coagulation (CFC), Flocculation-Coagulation (FC) andFlocculation-Coagulation-Flocculation (FCF) have been found to be acceptableoptions. However, the FCF process outperformed the CFC and FC processes becausethe FCF process produced huge flocs resulting in fast initial settling rates.

Excerpts taken from abstracts in CMQ, Vol. 46, No. 3.Subscribe—www.cmq-online.ca

cmq abstracts

November 2007 | 111

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