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This page primarily focuses on metallurgical mining, though many of the terms, processes, and concepts are the same within the non-metallurgical extraction industry. These other industry sectors include gas and oil production, nonmetallic mining, and aggregate production. Environment, Society and Labor. California Mining and Lore Nevada Mining and Lore
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Mining Law of 1872 May 10, 1872 (17 Stat. 91, 30 U.S.C. 22 -54). Discovery of Mineral Deposit, Locating and Recording Mining Claims Site Development Annual Maintenance Mineral Patents. Other Mining Laws and Regulations
An individual may exercise their fundamental and unalienable right to mine minerals on federally owned land by staking a claim to and on the land. establishing claim, the individual must maintain the claim to exercise and keep rights for beneficial use of the land and property assets. remains with the government. Before the Federal land Policy and Management Act of 1976 (FLMPA) the claimant had the right to extract minerals and use the surface unimpaired and unqualified. However, the land management agencies, as backed by courts, currently only allow the claimant use of surface as necessary to develop the claim according to provisions of surface management regulations (36 CFR 228, 3209, et. al) promulgated by the land management agency. taxable private property that can be leased or sold. claim, or otherwise defaulted (eminent domain, unpaid taxes, and similar) the property rights revert to federal control. 1.1 What is a Valuable Mineral Deposit
The term Valuable Mineral Deposit in the federal statutes. definitions. The first is the economic definition which proscribes to the concept of an economic ore body.
the requirements of the statutes have been met The Supreme Court approved a parallel concept.S.4 Annual Maintenance Major recent deliberations regarding the requirements for annual surface work per (30 U. 28) were decided via and are contained here: .theprospector.3.C.. in Hughes v. 1. and stores for their workers. which provided".where minerals have been found and the evidence is of such a character that a person of ordinary prudence would be justified in the further expenditure of his labor and means.2 Construction of Mining Buildings and Utilities Some miners need to build homes. • Locating a load claim • Locating a placer claim • Locating a mill site • Tunnel right • Amending/patenting mining claims 1.. the marketability test. and processing mills and ponds.3. in U.1 Construction of Access and Haul Roads. oil.3 Site Development 1.2 Locating and Recording Claims The following site does a great job detailing the process of striking a claim http://www. 1.html Mining claims Mineral Leasing Act of 1920 removed coal. conveyances. recreation.3. 1. oil shale and gas.established the "prudent man rule" in 1894. with a reasonable prospect of success in developing a valuable mine.com/html/howtostakeclaims. pipelines. stone. especially when located way out in the boonies of Nevada or Australia. Rail Spurs and Ports 1. 1955 (30 USC §612(b)) removed sand. Coleman. Florida not a locatable mineral under the Mining Law of 1872.S.3 Construction of Beneficiation Facilities Construction of trams. leach pads. and gravel from the Mining Law of 1872. v. among other minerals (30 USC §§81-287) and the Act of July 23. 290 US 602-603 (1968) which requires that the claimant show a reasonable prospect reasonable likelihood.
findlaw. The godfather of all resource activities is the Mining Act of 1872. Mining provides some information here: http://www. mining claims on public land that was formed in California and Nevada in the late 1840s. though the FLMA typically impedes such rights. [http://library. permitting.court=us&vol=471&invol=84 1.html] generally proceed without any compensation provided to taxpayers should activities meet and stay within certain thresholds and parameters. rights to both access and use of the land.6 Law and Regulations Definition of mining and extraction: blasting and crushing of rock than enables miners to concentrate metal-bearing ores. States federal law authorizes and governs prospecting and mining for hard rock minerals such as gold and silver on publicly owned lands.gov/federalregister/44fr67057. the land does not revert to the government but remains private land. . 1850s. custody or control of the site. Federal Land Management Agency (FLMA) land.5 Mineral Patents.com/1999/Jan/1/241491.osmre. a claimant may buy out the fee-simple interest from the government entirely. are collected by the Federal Government. The following laws and regulations govern not only the mineral extraction and mining activities but all the other ancillary support activities that must also be conducted such as social and environmental work. Primary Laws and Regulations Governing Mining Abandoned mine reclamation funds 30 CFR Part 872. during the California gold rush. and 1860s. Unpatented Lands Reversion to Federal Control Unpatented and abandoned mine/mill sites entirely on federal lands may revert to federal control per the establishing and implementing regulations of the federal land management agency having ‘jurisdiction. For patented rights. 1. and bonding. Patented Lands Through the patent process. to the land.txt Mining has always been one of the more regulated industries in the US.
S. such as sand or gravel. procedures and provides for abandonment if the procedures are not followed. and Mining and Mineral Policy Act of 1970. 4332(2)(C)) Public land authority in 43 U. The Multiple Mineral Use Act of 1954.C.S.the following laws and regulations govern mining today: • • • • • • • • • Clean Air Act (42 U.) Comprehensive Environmental Response.C.S.S.S. 7401 et seq. 30 U. Compensation and Liability Act [aka 'Superfund'] Emergency Planning and Community Right to Know Act Solid Waste Disposal Act Safe Drinking Water Act Migratory Bird Treaty Act Toxic Substances Control Act Endangered Species Act National Historic Preservation Act Native American Graves Protection and Repatriation Act Federal Mine Safety and Health Act of 1977 (Mine Act) 1973) • • • • • • • • • • • • • • • • • • • • • . (Promulgated per Department Of Interior [DOI] Mining and Minerals Policy.C.2. Rural Abandoned Mine Program 7 CFR Southern Nevada Public Lands Management Act Surface Resources Act of 1955 (69 Stat.S. 367. Forestry Act of 1897 The Mineral Leasing Act of 1920 (which made certain nonmetallic minerals not open to claim staking) The Mineral Materials Act of 1947 giveaway of certain minerals..).S.S.C.) Clean Water Act (33 U. 1201 and 1457 Resource Conservation and Recovery Act (42 U.C.C. Federal Land Policy and Management Act of 1976 (90 Stat.C. The Multiple Surface Use Mining Act of 1955. 1061 et seq. 1933 (U. 43 U. Treasury Act 416F) Unlawful Occupancy and Inclosures of Public Lands Act (43 U. Surface Mining Control and Reclamation Act of 1975 Gold Confiscation Act of May 21. 601-615). Mining Law of 1872 May USC Title 12 Chapter 2 Subchapter 1V National Environmental Policy Act of 1969 (42 U. which provided for the development of multiple minerals on the same tracts of public land. 1251 et seq. 1701 et seq. 6901 et seq.). which withdrew common varieties from mineral entry.C. 2743.).S. as required under 43 CFR part 3800.
Natural Resources Division 2. Goals: Define valuable information on mineralogy.g.2 Sampling 2. Department of Conservation Chapter 8. 2.3 Mapping 2.access. some quite advanced and many as old as the hills themselves. Chapter II .Interior Department Regulations Title 43.6 Pre-Feasibility Study 2.5 Ore Assay 2.html Bureau of Land Managements (BLM's) 1980 Regulations 43 CFR part 3800.htm CALIFORNIA CODE OF REGULATIONS TITLE 14. deposits and ore bodies. State Mining and Geology Board Article 1.Department of Interior http://www.] .nplnews.gpo.4 Drilling 2. alteration patterns and the controls on precious metal mineralization NOTE: A ‘qualified person’ under the governing regulations (e. EXPLORATION Exploration entails the p exploratory work involved in searching for properties containing commercially viable ore. Mining and Geology Subchapter 1.gov/nara/cfr/waisidx_00/43cfrv2_00. Let’s go over each step in detail.1 Prospecting/Surveying 2.1 Prospecting/Surveying Prospectors find gold. Restrictions on Patented Land Use http://www. structure. National Instrument 43-101) such as a qualified and certified geologist typically oversees exploration and development field work including drilling activities.com/library/1872mininglaw/occupancy/jul16199643cfr3715. Surface Mining and Reclamation Practice NEVADA REVISED STATUES AND NEVADA ADMINISTRATIVE CODE II.
does.edu/earthsci/student/lawrence1/lawrence. in turn. recording the time it takes for that wave to bounce off a buried body of rock and return to the surface. physical properties such as grain size and crystalline structure. properties.digistar. time and money and a fair amount of good luck (education may sometimes partially suffice). remediation techniques: http://www. Field sampling may include review of previously published data and remote sensing. some discoveries are incidental or even accidental. Remote sensing can be accomplished through both satellite or field aerial reconnaissance. geographic basin than others.the target of the initial exploration. . read of the lay of the land.a spectral signature. techniques first use to find the minerals in a ore are also used to find minerals released into the environment. using sensitive geophones. Desk-top surveying includes review of geologic geophysical and aerial maps and previous mining locations and production values.mb. 2.2 Sampling Mining is a matter of milligrams and tons. technique. and relying on a fair amount of luck. must be present in both amounts and form that warrants setting up an operation and investing further resources. technique will identify geologic formations that may provide favorable mineral targets.There is no one right way (the right method is the one that yields economical metal recovery). http://www. require tools. determine how a mineral will absorb and reflect sunlight.ca/minsci/finding/remote1. environmental remediation methods were born of the mining industry.htm Surveying also includes geophysical methods such as seismic refraction which can determining the composition of material underground by inducting a shock wave and then. however.htm Geologists also use remote sensing as a remedial cleanup tool. Modern prospecting forms the basis of an exploration program which utilizes several tools to target potential sources of commercial grade commodity ores .emporia. Remote sensing survey's will reflection of light . prospectors used tools such as a pickaxe and shovel and picked their targets using their knowledge of geology.
samples are developed either via backhoe trenching or a standard reverse circulation drill rig to develop a series of soil samples from the area of glacially deposited till. should surface sampling prove . compaction and density tests are typically conducted surface sampling methods that can be accomplished with minor expenditures because the samples can be collected almost directly from the surface. Drilling test work may follow surface tests. Samples must meet standards for Precision.per volume and can be expressed as a percentage such as ounces per ton or milligrams per kilograms. and not just some sub-set thereof (Representativeness). such as tons. Provides a true view of the overall media resource. The organic material. information on measurements. ‘duff’ (in soil science parlance the O surface and the underlying mineral soil (in soil science parlance. Comparability and Completeness (PARCC).e. yards or as mass. Simple surface determinations Bulk-till sampling is a sampling protocol or process used to determine the mineralization grade of glacial till. the ‘A’ horizon) is collected and analyzed. Representativeness. the Germans developed modern geologic methods. and the Americans developed modern hard rock mining determinations and technology. All soil sampling is actually on the mineral portion of the soil. Accuracy. Typically. generally. These requirements are simple in theory but extremely difficult to provide in a field sampling program. Provides a very close approximation of actual conditions in the media (Accuracy). of course) Initial Soil and Metallurgical Determinations Plasticity. and gives a full picture indication of the likely conditions that will be encountered throughout the data set and media (Completeness). science. The samples are then assayed under a microscope to determine particle counts. i. These standards provide that the data set represents actual conditions of the media that was sampled (Precision). Metallurgical and Geotechnical Testing and Determinations Soil science provides the basic sampling and determination methodology that miners employ first to determine if the first few feet of earth show promise that warrants exploration into deeper earth. mining goes back thousands of years. provide that these indicators are fully met. Percolation texts. can be replicated and analyzed next to other similar data sets collected for the same reasons from the same media (Comparability).
Resource definition drilling: Pre-feasibility Feasibility study Phase I Drilling Exploration geologists use drill rigs to collect samples from cores of ore bodies beneath the surface with the intents to gather a representative samples that may determine whether further exploration is warranted. Diamond: Drilling with a hollow bit and a diamond cutting rim produces a cylindrical core that is used for geotechnical and geological study and assays.1 Drilling Types Air Rotary: This drilling method uses air pumped from a tank at the surface. Different drilling goals may require differing drilling techniques and methodologies. . Drill Program Design Long-hole open stope: feet long into an orebody and then blasting a slice of rock that falls into an open space. 2. down through the drilling rods and back up the circular ring to the surface.3 Mapping Geological mapping support the intent to provide sufficient information necessary to prepare a resource estimate of gold resources. Cone Penetrometer: penetrometers (CPTs) push rather than drill through a soil via large force exerted by a truck on the surface.4 Drilling A proper drilling program determines the extents of the mineralization down dip and along strike.4. Exploratory Shafts: around the mouth of a shaft/drill hole 2. The broken rock is extracted and the resulting open chamber is not filled with supporting material. The re-circulated air brings drill cuttings back to the surface. Used in minerals exploration. simultaneously cooling the drill bits while also keeping the borehole from collapsing inward.promising. 2.
down through the drilling rods. penetrate soil through use of vibration and rotational force. The cuttings are them dumped into the waste pile. rigs can be mounted on relatively small trucks. hollow steel core with hardened tungsten or carbide bits into hard host rock. pushes a sampling core barrel directly into the soil. the geoprobe can be advanced through soil using either a percussion hammer or direct force. Additionally. the circulated mud brings the drill cuttings back to the surface where they settle and then are removed (or disposed with the mud) from the slurry tank. using static weight and vertical force. Percussion Drilling: engine or percussion-powered and cable-driven core and barrel sampler can be placed in almost any situation yet produce fine cuttings of 80-90% (minus 8 mesh).2 Drilling Methods Condemnation Drilling .com/forager/cable-tool/cable-tool-drilling. Large Diameter Boreholes in soil.consallen. where the slurry (mud) is recycled.4. Geoprobe: A direct push.htm Reverse Circulation (RC): drilling technique produces rock chips rather than core. along the host rock. air to the surface and are collected for examination and analysis. 2. Recirculated air pushed sampling material up along the outside of the steel rod. is both faster and cheaper than diamond drilling. Rotosonic Drilling: A dual hardened carbide bits. industry typically used this drilling method for initial large scale sampling programs with necessary drill depths between 10 and 150 meters. This methodology both cools the drill bits while also keeping the borehole from collapsing inward. and back up the circular ring to the surface. These folks did a great write-up on their model: http://www. and readings. rather than a drilling technology. measurements.Direct Push: A surface mounted truck. Rotary air blast (RAB) Drilling hardened. Mud Rotary: This drilling method uses a water/bentonite (clay) slurry that is pumped from a tank at the surface. useful for initial soil sampling – especially in tight areas. collecting samples. stops and raises.
As such. or first rights on production. C) Legal dispute over land and the holding party wants to show that the land is not as valuable as another party may claim. the placement of new drilling bores within areas of previously quantified resources or known previous production. may have a hard time attracting standard potential then those production basin with proven and known production history and potential. The new potential development basin. In this case other metals are considered as a credit of gold. pre-feasibility study or . Drilling Program Objectives Determine and outline indicated and inferred mineral resources Establish economic feasibility of production based upon a gross metal value per tonne cut-off.A systematic condemnation drilling program Goal: To show there is no economically significant metal mineralization on a property. new drilling programs on previously unidentified. those looking for resources in areas not previously determined by drilling. assay and geochemical results. B) The landowner is trying to utilize or transfer the lands for other purposes. as with any venture. 10 ounces of gold and enough copper and silver to equal the monetary value of two ounces of gold . Infill Drilling Diamond drilling at shorter intervals between existing holes. or known production areas provides additional risk. provides willing investors with a greater potential return on their capital. sampling. Drill Results Drillers report results within an initial drill program. quantified. Of course. developers with the nickname ‘wildcatters’. (GEO). the riskier the venture the more profitable the potential return. Sometimes results are presented as Gross Equivalent Ounce. This type of drilling design typically serves one of three purposes: A) The land owner is trying to determine that cutoff grades are insufficient to continue exploration (finding the edge of the economical lode). Those that can find a new economically developable resource put themselves in a fine point for selling out their claim. used to provide greater geological detail and to help establish reserve estimates. The drill hole plan and drilling field work requires oversight of a Qualified Person.hence the ore is rich in 12 Gross equivalent ounces. Developers must focus on Infill drilling. simply because it is new and unproven. Canon in the resource extraction industry provides that the best place to find gold is where you find it and the next best place is where somebody else had previously found it.
as shown by Pelangio Mines. exploration program goes.com/Operations/WestAfrican. the higher order of information is provided.asp Note in this example showing results from the pre-feasibility study. The full results can be found at: http://www. Here is on example of how drill results are presented. 2006: Table: Drill Hole Data --------------------------------------------------------------------------------------------HOLE COLLAR NUMBER LOCATION ---------------------------------------------------------------------------------------------PM-113 18560E 20135N --------------------------------------------------------------------------------------------PM-114 18480E 20135N -------------------------------------------------------------------------------------------The following table presents results from a pre-feasibility study conducted by Golden Star at two African properties.. Inc.feasibility study.gsr. North East Benso BERB30 57485 175512 2 BERB05 58034 176720 8 BERB14 58501 176962 5 Hwini-Butre HBRB0 32759 176934 001 HBRB0 32759 176958 002 HBRB0 32811 176805 021 HBRB0 33015 176543 034 HBRB0 33119 176298 . has more information than the results provided in the table above. reported in June.
typically considers previously known grade averages of a property. The economic viability depends on whether or not the deposit can be developed via surface mining. 7.those very high or very low samples that are not reflective of the actual ore body. construct most open pit mines on ore bodies way under an average of 7.5 grams per ton/gold (gpt) is a fine sample when representative of an ore body that requires underground mining. and levels over 40g/t per specific silver deposits. multiplied by size of the ore body.5 gpt. or if underground workings are required. . may only be reported above a somewhat arbitrary minimum and below an arbitrary maximum. the capital effort On the other hand.) The grades really come down to how rich the strike is.044 HBRB0 094 HBRB0 095 HBRB0 097 HBRB0 175 HBRB0 253 HBRB0 325 33369 176318 33419 176318 33442 176334 34496 176200 32659 177145 33208 177191 Are these grades good? The following are considered 'high grades' for the purposes of most North and South drilling programs: (NOTE: this was the company's version of what a high grade means. underground.5 gpt proves quite a rich target for open pit mining. as long as the vein is at least 1 meter wide and many meters long.0 g/t gold and 20 g/t silver when a by-product of gold mining. and they specifically referred to their particular deposit. or value. with similar grades. 7. example. CoinMIne prefers results above 10. What is the difference between cut and uncut grades? A 'cut' result actually refers to grade. only reports those figures above the arbitrary minimum and/or below the maximum to eliminate 'outliers' . underground veins are present.
1. International Assay Companies Ammtec Laboratories in Australia. Mexico • Acme Analytical Laboratories in Vancouver.0% or 5. when a sample is reported as a percentage (%) of 1. • G&T Laboratories in Kamloops.5 Ore Assay Ore is an economic resource known as a reserve. Percussion drilling producing fine cuttings (80-90% -80 mesh) with a split sample is used to assay for target metals. Peru . TransWorld Laboratories in Tarkwa. Sparks • ALS Chemex. North American Assay Companies • American Assay and Environmental Laboratory Reno. British Columbia.0% produces 100 lbs per ton. Phase II Drilling A miner may conduct second phase drilling to confirm gold mineralization controls or provide a comparison with grades in nearby holes. Hence 'uncut' results are true assay values. North American Drillers Drift Exploration Drilling from High River. Ores grades are reported as a percentage by weight. in Swastika. Ontario. Nv (Was Bondar Clegg prior to Dec. Ghana SRK Cardiff BSI in Lima. Az.averaging purposes provides a better picture of overall property grades. Alberta 2. 2001).0% produces 20 lbs metal per ton 5. Canada • Swastika Laboratories Ltd. • Cone in Denver • Bondar Clegg in British Columbia • Chemex in Sparks. For explanation purposes. Guadalejara. See Weights and Measures Then: • • 1. • Inspectorate American Corporation.0% per short ton (2000 lbs ) [Note a 'tonne' is approximately 2204 lbs. Nv • Skyline in Tuscon.
atomic emission spectrometry. the laboratory will prepare a standard1. Once the fine subsample is prepared.5. late 1980’s we used mechanical pulverizers that were essentially a series of heavy metal rings that sat on a vibration bar.000-gram subsample by pulverizing with large capacity ring and pulverizing bar or puck pulverizer so that 90% passes through a #150 mesh.2 Assay Methodology Some of the most commonly used assay analyses in the mineral production industry include Fire Assay. owners need to also know the levels of base metals in their ore to conduct mining plans. Bulk Leach Extractable Gold sample (BLEG)/Leachwell analysis (a Coupled Plasma. zinc. lead. All soil properties. Many samples assayed for gold. laboratories have a variety of analyses and assay options at their command. Peru 2. hue and chroma should be defined for dry soil samples. Typically.5.Inspectorate Services Laboratory.1 Sample Preparation Laboratories prepare samples for analysis by drying and heating the samples for a couple days so that the moisture leaves the ore and the assay can be reported as dry results. especially. sample between the metal rings. sieving and jaw-crushing is employed to get the sample size such that 90% will pass through a #10 mesh sieve (2. copper.00mm diameter). are done by fire assay fusion and finished with either gravimetric or Atomic Absorption analysis. The samples are dried in large walk-in ovens kept around 170 degrees Fahrenheit. with the exception of color. Gold Assay Methods ALS Chemex has developed a very nice page describing and showing the various analytical methods currently used to determine gold (or other metal) percentage in ore: . they request the laboratories provide analyses of these base metals too. silver and two dozen additional elements are assayed by acid digestion and then finished with Atomic Absorption or Inductively Coupled Plasma (ICP) 32 element suite analysis. Once drying is complete. 2. producing an ever finer competent sample. Next.
because presence of various elements may favor selection of one process over another.alschemex. object affected by gravity. typically geochemical methodology was the methodology used for Au determination. especially when designing the processing circuit.http://www. However.a host of other not-quite-so-legitimate assay techniques that have been peddled by scammers (ala Bre-X in the 1990s).htm#Advantages%20of%20the%20Fire%20Assay%20Process Accuracy methods and standards [US standards used herein] provide utmost concern. use of spectrometry. For example. if you are looking for gold content in an ore sample and have not completely removed the silver from the ore than the result produced by gravimetric finish will provide false low results for silver and overly high results for gold since the reading of metals is now biased toward gold (the metal being sought in the analysis). undetectable. since all further exploration and economic decisions will be based upon reported laboratory analyses. there are – of course. . When exploratory samples are reported as ppb. For example.com/learnmore/learnmore-techinfo-preciousmetalsgold. Wet geochemical analysis is important to determine other metals and elements present in minor or trace amounts. the gravimetric method determines weight in samples by differentiating weight in an ore. 2. planning stage. Additionally there have been plenty of times where sheer errors in application and execution of technique have caused numerous problems (ala Lassen Mining in the 1980’s).5. today’s cyanide technology has made mass amounts of economical gold available to the Carlin Trend and elsewhere. Metal determinations by gravimetric finish require that competing metals in the same column of the periodic chart are completely separate before conducting analysis. or unavailable to mining techniques of last century’s miners.3 Quality Assurance and Quality Control In addition to the myriad standard analysis methods available to today’s assayers and laboratories. much of Nevada’s current gold production supply was either unassayable. or indicate a need for various types of pre-treatment. reported via assay. the miner missed the orebody potential (to be later picked up by the next individual who either applied a better technique or waited a few decades for the better technique to be invented. reported as parts per million (ppm).
community has developed their own programs to ensure the integrity of their analysis and reporting. To prevent these errors or fraud.One underhanded technique is development of a drill core. Blanks are used to check for contamination. might be treated with pulp and metallic sieve analysis and then compared to analyses and results provided via other analytical methods such as fire assay. Regrettably. have looked back at cores develop two or three decades ago. all sampling programs. The exploration geologist will typically provide duplicate samples to another laboratory for analysis of the same metals. So too. core is split and only 25% or 50% is set to the laboratory for further analysis. hundred foot levels that were left there when the mine last operated many decades ago. Often samples with a certain cutoff grade. Examples of QA/QC Programs – Drilling and Sampling Drill programs require a QA/QC program to assist in estimating reserves. Standards check for grade-dependence variance and biases and are also used to calibrate sampling equipment. As such. These core samples provide a visual history of the past investigation and development program on a property. follow standard statistical analysis methodology to provide clarity and transparency in their results. then grinding the entire core sample into a powder which would then be assayed. systematic and rigorous methods for data Validation and Control to ensure the sample data is not corrupted with false positives or negatives. Duplicate samples are two samples collected from the same core but submitted separately. and reporting are subject to QA/QC programs. analytical analyses. or archived for future analysis or posterity. I know of geologists that. such as 10g Au/t. the regulatory interests added their own standard reporting methods. . when examining a property for potential development. the industry has developed quality assurance and control protocols to ensure the integrity of their geologic program. when the entire sample is pulverized. The QA/QC program may entail regular insertion and analysis of blanks and standards to monitor laboratory performance. The remainder is saved and can either be assayed again in the future as a split or duplicate sample. Sometimes the geologist will have a third assay conducted by different analytical methods. the temptation and opportunity (a dangerous combination) exists for altering (tampering) or ‘salting’ (adding precious metal flour to) the sample.
2. duplicates. geologists could request the laboratory employ even more rigorous or additional QA/QC checks to ensure sample and data integrity. to minimize the innate heterogeneity of a large sample (over 1kg) that coarse samples provide in order to arrive at the most accurate assay possible. Examples of QA/QC Programs – Analytical and Assays Course samples. Laboratories may use third party independent contractors to conduct data validation. For instance. and standard blanks can all be run through the same analytical process as the fine samples to serve as blinds.The size. Depending upon the goals of the investigation program. type and texture of the sample provides a challenge. samples are often re-assayed via metallic screen fire method – generally considered a better analysis for coarse gold samples although the assay is known to report gold percentages of up to 5% higher than standard fire assays. and precision their analyses when compared to previously prepared and analyzed ‘standards prepared for the analytical method. inserted every 20 samples with field duplicates every 25 samples. blanks and duplicates could comprise as little at 10% or as great as 20% off the total sample assays. from which the sub samples were prepared. and certified standards to determine accuracy. as grams per ton (g/t). provide part of the QA/QC program because portions of the course sample undergo the same analysis and the fine samples. Examples of QA/QC Programs – Results Reporting Ores grades are reported as a percentage as parts mineral per weight.6 Pre-Feasibility Study . analysis standards. consistency. a geologist could design a drilling program where 5% of samples are blanks or duplicates. parts per million (ppm) or parts per billion (ppb). program regarding method blanks. laboratory serve as double-blind samples. These data validators use statistical and mathematical models to ensure data integrity. splits. Reporting could be done. An example (QAQC) sampling program may provide that known samples with certified gold content (standards) are inserted every 20 or 25 samples (depending upon the total sample size submitted for analysis). for example.
a 'staked' claim is unpatented and therefore conveys no ownership rights to the property. Determine indicated resources in million ounces and grade in grams per ton.Goals: • • • • • • Estimated a capital cost to develop economic resources on property (hopefully within approximately 20% level of accuracy regarding costs). Determine average ounces per annum and total year mine life (and build in assumptions regarding average operating cost per ounce production). cut-off grade. Design and implement drill program . Determine probable reserves in grams per ton and total ounces. However. Scoping Study The scoping study may entail three components: • • • Independent Reserve Study Develop power and water source. based on indicated resources that were developed via the drilling program. Confirm and Demonstrate Land Ownership and Rights Patenting In the US. When patented. Patent=title=ownership Properties Do properties meet NI 43-101 standards. they own it. Identify million tonnes per annum operation productivity target. the applicant is issued a title. the competent person designs an economically optimized pit based on all operating and mining costs. Estimate a Net Present Value ("NPV") using a constant gold price per ounce at a set discount rate (such as 5%). if a company has a patent. reserve material that is demonstrated to be technically and economically feasible to extract. Mineral Rights Water Rights Credits Determining Reserves In determining reserves.
legally defined. technical definitions for ore assets. differ significantly from the calculations and reserve disclosure guidance promulgated under U. or "bankable" feasibility study in order to disclose and publish calculated reserves.Goals: Gather information sufficient to move project into Preliminary Feasibility Study phase. In determining reserves. reserve material that is demonstrated to be technically and economically feasible to extract. Securities and Exchange Commission Industry Guide 7. "believe". Note that Proven and Probable’ reserves disclosed under NI 43-101 are not considered reserves under U. meanings and must be used as such in publications: "seek". "estimate". "could" or "might" Oxide vs. Reserves are modeled to a cut-off grade. these terms have exact. "will". and regulatory body decision rules. Objectives: • Determine and outline indicated and inferred mineral resources • Establish economic feasibility of production based upon a gross metal value per tonne cut-off (Requires Qualified Person) Reporting Standards Mining companies use Technical Reports to report reserves and resources. "anticipate". "plan".S. "should". "expect" and "intend" and statements that an event or result "may". Note: This will effect mining company valuation! The 12 Dirty Little Words of Mining Exploration Any financial report or marketing statement that uses the following list of qualifiers must ensure that the terms meet previously published standards.S. The standards that govern these reports and their underpinning methodology are contained in various regulations. Securities and Exchange Commission Industry Guide 7.Standards of Disclosure for Mineral Projects (NI 43-101 standards). industry guidance. refractory ore . These reporting regulations include: The Reform Act of 1995 Reserves calculation according to National Instrument 43-101 -. the competent person designs an economically optimized pit based on all operating and mining costs.
‘red-bar’). (when cyanide as CNO is introduced into solution leach the Au. Reporting Reserves Mining reserve estimates must be conducted by a primary qualified person. The primary metallurgical problem regards oxides. which may change after various ownership transfers or other financing agreements. host rock and ore that will be unearthed drives this analysis. . Oxide ore has already undergone weathering and chemical processes of oxidation which make the ore amenable to leaching recovery. less amenable to leachate due to presence. the mining company will usually indicate what percentage of the reserves they have an interest in. pooling resources to develop a property they could not otherwise bank on their own. a processing method where bacteria oxidizes refractory sulfide ore such that it is then amenable to normal oxide ore processing techniques such as gravity separation followed by carbon-in-leach (CIL). with an assumed percent of dilution allowance for waste rock and another efficiency percentage typically in the high 90 bio-oxidation treatment. Cerro Casale has returned some very impressive amounts via exploration programs but becomes challenging when the pre-feasibility looks at treatment methodologies because both Cu and Au are available in large quantities buy low grades. Any ore that does not respond to conventional mineral processing (cyanidation) to produce acceptable product recoveries without an intermediate step to address its refractory attributes (usually some form of oxidation). Additionally. the CoinMine has long been interested in including Cerro Casale. joint ventures. into solution hence the dore product has unacceptable Cu levels (mostly aesthesis are unappealing . especially Cu oxides (and carbonates) present in ore.One extremely important part of the pre-feasibility study is making ht determination on how to process ore to retrieve economic metals. report the total percentage of each type of ore. For example. Any problems with recovery will drive up operating costs and impact mining valuation. Reserves are typically reported as oxide and refractory ore.
the bankable feasibility study (BFS). The BFS goal is to thoroughly examining al project inputs to determine if the sites ore can be economically mined given all other financial. regulatory and social inputs with the goal of providing enough information and analysis to recommend the next phase. analyses economic. 3. regulatory. social. • PRELIMINARY ASSESSMENT Exploration and engineering activities Previous Metallurgical Work and Current Recommendations . the pre-feasibility study summarizes the exploration phase and recommends whether or not the ore grades justify moving the project into the next phase.Mineral Resource Summary Open Pit Underground Reserves are: Indicated Resource Inferred Resource Underground Indicated Resource Inferred Resource + Open Pit Reserves Deposit Indicated Resource = Total Inferred (non reserve) material • • Pit optimization studies Pit Optimization Results (Drilling results in grade and tones) Pre-Feasibility Study vs Preliminary Assessment vs Bankable Feasibility Study Very generally.1. and environmental conditions. III. the preliminary assessment.
00 per tonne ore. 3. • Plant Gold recovery .3 Economic Analysis GOAL: Estimate potential financial results that development will provide using assumptions of mining method (open pit/underground etc. • Capping assays.US$12. and • Estimating grades and thicknesses of each vein separately • Develop three dimensional grade thickness models Resource may be estimated by ordinary kriging of 5 x 5 x 5 foot blocks.50 per tonne of material.US$1. • Processing costs .• • Block model Pit Optimization Mineral Resource Estimate 3. Drill hole spatial density varies. • Coding samples. • General Administration costs . and • Assume 50% of existing underground workings backfilled with material . Resources estimate methodology Geotechnical drill core testing > Test results help determine pit design parameters. Interpret drill intercepts in cross section. Calculation and reporting of reserves must follow the regulations and guidance used in the country of origination is which the corporation was established. • Compositing to vein thicknesses.US$1. being more concentrated on known resources and less concentrated on the lode periphery. diameter) are drilled from surface. A typical estimate may be shown as: • Overburden mining costs .25 per tonne of material.2 GOAL: Upgrade inferred resources to indicated or measured resources.95%. • Rock mining costs . Canadian forms calculate and report according to US firms report to standards of Exchange Commission Industry Guide 7. results are then translated (called ‘reblocking’) to larger 10 x 10 x 20 foot blocks. This size reflects the practical constraints anticipated with typical proposed open pit mining methods. BQTK holes are drilled from below ground. instance. Economic analysis requires estimation of both costs and production.00 per tonne ore.) and milling operations. Cost estimates are generalized at the Pre-feasibility stage to reflect industry standards and averages.US$5.
to build the cost model that will provide an estimate of the net present value (NPV) of mineral resources.Mineral resources are the basis of this economic assessment. those facts derived from the optimization study and the underlying assumptions built by the study that feed the economic model.Strip ratio of about 11:1 (based on measured and indicated mineralized materials with known and inferred ounces per tonne.) .Target gold price .0.5.5. Actual production costs widely vary and depend upon many site specific factors. 3. will determine the feasibility of conducting further analysis and work at the ore body and second the model will underpin future fundraising and other financing efforts.4 Pit Optimization Studies .5 Economic analysis Fundamental economic analyses are driven by the pit optimization study. Recovery. Total Gold) • Waste Rock (Tonnes) • Waste Till (Tonnes) Production Ounces Ore • Open Pit • Underground • Total Metal Sales • Gold • Silver • Base Metals Royalties Operating Costs • Mining • Processing . 3.1 Pit Economics 3. 3.2 Production Inputs and Statistics Open Pit Ore • (Tonnes.having a density of 2.
• • •
Load to Crusher Ore Processing General and Administrative
Cost per Ton Ore Cost per Ounce Gold Net Profit pre-tax Capital Investment Working Capital Equipment Salvage Pre-production mining Net capital costs Net cash flow Cumulative cash flow GOAL: Provide Goals for Preliminary Assessment and Bankable FS • Check sample a minimum of 10% mineralized zone by metallic assay zones using a zero cut-off. • Complete mini-bulk sample gravity checks on all drill hole composite samples. • Design and complete a bulk sampling program • Estimate "flow ore" mineralization types. • Determine differences between grade model and actual mineralization. 3.6 Key Assumptions and Parameters in an Economic Analysis.
Mining Operations and Costs Operating costs (2005) • US $3.00 per ton mining cost, • $1.50 per ton waste mining, • $21.00 per ton milling cost, • $3.85 per ton general and administrative cost, • $19.50 per ton trucking cost. Milling Operations and Costs Own Milling – Where the company construction and operates its own new mill at the project site. This becomes the ‘(base case’ for economic modeling. cases the operator may import a mill from another location or upgrade a previously existing mill. Toll Milling – Where the company enters into an agreement with an already operable mill to accept, on fee basis, their product for milling and treatment.
Cost Assumptions Estimator’s model projected costs, using boilerplate model programs and standard mine planning software packages, reflect recent actual mining costs from the same or nearby and similar properties, or contract mining quotes. These costs are extremely variable as quotes only reflect a certain period of time and known conditions. Modelers must input variability and contingencies. Estimators must estimate or establish the following”
A discount rate (for example Mine life (example 6.5 years based upon the optimized mine plan and mine schedule
Production rate (Example, 100,000 tonnes per year). In Canada the production rate must comply with provisions per the governing Mines Act or Environmental Assessment Act.
Capital costs (environmental, closure and rehabilitation)
• Realized metal prices (per production, sold forward, and hedged) Increasingly tricky yet important is estimating the currency exchange rates, especially over a relatively long mine life.
Bottom line, the economic analysis must provide managers and investors enough confidence in the predicted economic viability of the project to fund the next steps (additional permits and investigation and development) necessary to turn a property into production. Develop Annual Mine Plan The mine plan is developed first at the Conceptual Mine Plan during the Preliminary Assessment and then at the Engineered Design Stage during the Feasibility Study. Conceptual Mine Plan The definition of a mine varies upon use, purpose and jurisdiction. sense, a mine refers to an area of land from which mineral or metal ores is economically extracted including those areas where minerals are beneficiated including supporting infrastructure such as mills, roads, tailing ponds, ventilation shafts, etc. Use open pit modeling software such as
shell and outline total of in-pit resources using an estimated concentration of each recoverable ore (ton and percentage) at a minimum ton cutoff (such as $20/ton). You can order the latest version of Whittle here: http://www.gemcomsoftware.com/whittle41kit/ Develop expected mine life. Determine pit design parameters. 3.7.1. Develop process flowsheet The flowsheet process should provide for the conditioning and sizing (following separation processes) of feed material and the prescribed treatment process that will allow metal recovery Some of the guidelines a mining engineer must consider when developing process flowsheets are: Processing costs are more expensive than extraction costs Sulphides are more expensive than oxides. Oxides can be leached. Sulphides must be crushed then roasted before milling. Determine Mill Feed Rate The Preliminary Assessment requires development of a mill feed rate (in tonnes per year. As an example, a figure of 5 million tonnes per year could be used to calculate the secondary rates and averages that feed into the economic model. 3.7.3 Determine Average Head Grade Typical ranges, for example might range from 1.0 to 1.8 g/t of PM in the first five years of mining, and 0.5 to 1.0 g/t in the last five years. accounts for playing out of the lode and a mill that produces constantly diminishing returns. 3.7.4 Conduct Metallurgical studies on Core Samples (See section 2.5.3) 3.7.5 Determine Mining Methodology A standard example for conventional mill circuit utilizing an oxide ore feed might utilize crushing, grinding and two-stage flotation. 3.7.6 Determine Head Grade Driven Concentrator Recoveries (i.e. palladium 75%, gold 70%, copper 70% and nickel 75%.)
7.3.8. Principal Mine Geologist. Golder Associates. and labor change significantly. who pays what percentage of operation) Financing Labor Power Water Permitting/Environmental 3. through the nefarious and various vagaries required just to commence production – as detailed above. especially government support. exception. forces the mining business model to meet exacting standards. who pays what percentage of exploration. the markets consistently drive home this point as can be seen by large fluctuations in miner company share price when major inputs to the business model. teaches a great course on this topic and covers: • Grade control and sampling theory • Sampling methods and practice in open pit and underground mines .8 Grade Control Mike McKevitt. Customers and Competition Risk Factors Increasing Mine Plan Productivity a) Extend reserves along strike and at depth in currently known ore bodies. and d) Increase drilling amongst ore anomalies and high grade shoot extensions 3. b) Provide greater definition of additional deposits amongst inferred resources. percentage processed Property Interests (Who owns what percentage of resources. The initial and secondary financing required to meet the large sums of start up capital rely upon sound business plans. Business Model Every going concern requires a business plan when starting out. In fact the large capital required to bring a mine on line. c) Increase infill drilling amongst inferred resources via drill definition of targets previously identified via surface geochemistry computed from more widely spaced drilling.7.7 Determine Mining Costs Percentage mined vs. environmental permits.
10 3.com -------------------------------------------------------------------In-Pit Resources (constrained to 32-year pit) Ore Waste Cut-off Grade Strip Ratio -------------------------------------------------------------------- . stockpile control and classification of ore and waste • Reconciliation between ore reserves.12 Smelting and Refining Administrative Environmental Socio-economic Activities Empowerment.9 3. assaying and geochemical analysis • Tools for quality control • Cut-off grade determination • Delineation and mark-out of mineable ore blocks • Statistical and geostatistical foundations of ore block estimation • Sources and methods for control of dilution and ore loss • Comparisons between open pit and underground grade control systems • Practical mining of ore blocks.anooraqresources.• Sample preparation. grade control and production • Ore Block Optimization and other applications using conditional simulation 3.11 3.13 Example and Sample Preliminary Assessment This sample table was developed by Anooraq for their South African properties and is available at: www. Community involvement and service. Relocation of displaced residents 3.
Milling rate -------------------------------------------------------------------Average Grades (Life of Mine) Pt Pd Au Ni Cu -------------------------------------------------------------------Metal Produced in Concentrate (Annually) Pt Pd Au Ni Cu -------------------------------------------------------------------(i) GMV/tonne is the sum of the grade multiplied by metal price.32 years -------------------------------------------------------------------(ii) NPV and IRR are calculated on a pre-tax and royalty basis (iii) Pt-equivalent ounces are calculated by converting all metal values to a gross metal value. and then dividing by the price of platinum.An independent Qualified Person (QP). ASSUMPTIONS . Capital and Operating Costs -------------------------------------------------------------------Capital Cost Summary Mining Pre-production Plant and Infrastructure Socio-Economics -------------------------------------------------------------------Total -------------------------------------------------------------------Operating Cost Summary Mining Environmental/Reclamation Processing Administration Total (milled) -------------------------------------------------------------------Metal Prices -------------------------------------------------------------------Platinum Palladium Gold Nickel Copper Foreign Exchange -------------------------------------------------------------------Results -------------------------------------------------------------------Net Revenues NPV(ii) . using 75% recoveries for Pt. Au and Ni and 80% recovery for Cu. at the metal prices above. per Standards of Disclosure for Mineral .10% discount IRR(ii) Project payback All-in cash costs per Pt-eq oz in concentrate(iii) Net Cash flow . Pd.5% discount NPV(ii) .
0 FEASIBILITY STUDY DESCRIPTION OF PROPERTY The Bankable Feasibility Study (FS) provides the backbone of analyses that will determiner whether a mining property sees the light of production. given future increases in metal prices” Summary of: • Land Ownership • Exploration • Operations Parameters and Key Results: The Discussion on Measured and Indicated Mineral Resources Provide sensitivity analysis on key parameters: • Expected Capital Costs • Expected Operating Costs • Expected Cash Flow • Reserve Estimation Other risk factors Price of outputs: Price of metals and exchange rates Price of inputs. and mineral resource estimates. pit optimization work.These estimates formed the basis for the Preliminary Assessment. 4.The Preliminary Assessment contains sufficient data and mining scenario whereby the project can proceed to the Bankable Feasibility Study (BFS).Projects defined by National Instrument 43-101(NI 43-101). Energy risks Interest Rates · Construction project risks (general uncertainties in engineering and construction costs) · Fraud 4. in-pit resource estimate. or is passed onto the slag heap called “ be. . IV. .1 GRADES .1. developed block model.
reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 (“NI 43-101”) Canadian Securities handbook from those given by the Canadian Institute of Mining Metallurgy and Petroleum. and Australia. expressed as troy ounces per ton or grams per tonne for precious metals and as a percentage for other metals. based on reserve calculations. Both resource and reserve numbers must be released under a Professional Engineer or Geologist independent of the mining concern. or drilling results presented in other term. Cut-off grade: the minimum metal grade at which an orebody can be economically mined. the US. the approaches and definitions differ between each country.Grade: the amount of valuable mineral in each ton of ore. it must be done under the approval of a registered and independent Engineer or Geologist Canadian Terminology under As defined in a Canadian Securities handbook and Code of Federal Regulations (Regulatory Cite) produced in conjunction with the TSE and are covered under . RESOURCES and RESERVES Mineral Resources Indicated Inferred Mineral Reserves Proven Probable These terms are defined separately and differently in various gold producing countries. United States (US) reporting requirements for disclosure of mineral properties are provided governed by SEC Industry Guide 7. Survey promulgates reporting requirements. are generally standardized between Canada. Although reporting standards were fashioned by each county to have similar intents and goals such as relaying confidence levels and disclosures. Usually lower than reserve grade because of dilution by non-ore grade materials. Recovered grade: Reserve grade: estimated metal content of an orebody. In Canada. Millhead grade: metal content of mined ore going into a mill for processing. vary in South Africa. Whenever a mining company publicly releases resources or reserves.
grade or quality can be estimated on the basis of geological evidence and limited sampling. Ore quantities and qualities are considered reasonably assumed. but not verified. Inferred Inferred Mineral Resource quantity. However. The FS must include adequate information on economic. Indicated Indicated Mineral Resource enough established characteristics of both quantity and quality such that they can be sufficiently estimated to support mine planning and evaluation based upon economic viability of the deposit. Securities and Exchange Commission does not recognize the term.) Measured Measured Mineral Resource enough established characteristics of both quantity and quality such that they can be sufficiently estimated to support evaluation and planning of economic viability and production. Probable Probable Mineral Reserve indicated (and sometimes a preliminary feasibility study. mining. (NOTE: “Inferred mineral resources. the U. Proven Proven Mineral Reserve measured mineral resource demonstrated by at least a preliminary feasibility . metallurgical.S. processing and other relevant factors which demonstrates economic ore extraction at the time of FS reporting. Mineral Resource Mineral Resource concentrated material in such form and quantity that provides a grade that provides a reasonable prospect for economic extraction. RESERVES Mineral Reserve indicated mineral resource (ore body) demonstrated by at least a preliminary Feasibility Study (FS). These terms are also standard for use in Oz and the US. Mineral reserve calculations include diluting materials and loss allowances during mining." Is a term recognized and required by Canadian regulations.CFR43-101.
degree of assurance is high enough to assume points.A type of resource that has proven economic potential based upon a feasibility study. sampling and measurement so closely spaced and where geologic character is so defined that the mineral content of reserves are well-established. United State Terminology Under [NOTE: As CoinMine is a US concern. sampling. A reserve refers to that part of a economically extracted at the time of reserve determination. Proven (Measured) (a) Quantity is computed from revealed dimensions or drill holes from which. but the data points (inspection locations.study. grade and/or quality are computed from the results of detailed sampling. etc. RESERVES Reserve . US terms and definitions are used throughout this web site and related materials unless specifically stated otherwise. A “Bankable Feasibility Study" requires standard analysis that implies confidence levels developed in the study provides sufficient eligibility for the project to receive external debt financing. Inferred. Indicated and Measured resources under SEC 7 are substantially similar to the NI 43-101 definitions.) are either spaced further apart or otherwise less adequately determined.] RESOURCES Resources are mineralized materials without sufficient quantified or qualified data necessary to be considered reserves. Summary of Terms . and (b) Where the sites for inspection. Probable . The tonnage difference between Probable and Proven is the sum of noneconomic ore removed from economic ore.Refers to reserves with estimation similar to that used for proven reserves. The tonnage difference between Probable and Proven is the sum of noneconomic ore removed from economic ore. Reserves must be supported by a feasibility study done to bankable standards that demonstrates the economic extraction.
regulated by Title 36 CFR . • Are recognized by standards experts as a mineral • Are not subject to disposal under another law. Sales Contracts on National Forest System lands.) are not salable.2 FEDERAL MINERALS Locatable – Locatable minerals depend upon economics and as such cannot be provided in any one complete list.S. Use of salable minerals requires either A) sales contract or B) Free use permit. Sales Contract on BLM lands are regulated by Title 43.S. Free Use Permits are only issued to Government agencies or a nonprofit organization. clay etc. Geological Survey Circular 831 • Principles of a Resource/Reserve Classification for Minerals Bureau of Mines and the U. Part 3600. Code of Federal Regulations (CFR).RESOURCE Inferred Indicated easured Also see further resources: • U. Geological Survey • A revision of the classification system published as Survey Bulletin 1450-A 4. Salable Aggregates (sand. Leasable – US Department of Interior regulations originally defined locatable minerals as having three qualities: • Prove the land more valuable by their existence.
4. • Provide overview of Mineral Geotechnics and geotechnical investigation • Present executive summary of mine design.g. and easily recovered. Describe Processing and Recovery Processes: e. amounts of metals are distributed across very large areas in very low grades. Style of Deposit. Describe Production Levels Define expected metallurgical recovery n percentage terms (e. semi-autogenous grinding and ball milling. Physical properties include hardness (measured per Moh's scale). formation and stratification.1. These factors help estimators and modelers develop bulk volume estimates and cutoff grade estimates. engineering requirements. easily recognized. 4. of valuable minerals than those at lower depths. followed by gravity separation and carbon-in-leach treatment before gold refining.Subpart C.3. Vein deposition provides the most economical removal because the orebody is compact.40. 96%) 4.Engineered Design Stage GOAL: Summarize the following: • Environmental Conditions • Hydrogeology. Depth of Deposit. hydrology. typically require a Special Use Permit.3.4 Establish cut off grade Host Rock Physical and chemical properties of the host rock determine production and recovery rates.2. 228.3 Mine Plan .3. easily defined.3. etc.g.3. conventional crushing. 4. Assumptions for Example Cutoff Grade: 1. Remaining deposits are more expansive and disseminated. Most of the easily accessed (near the surface) vein deposits have already been mined. Describe Mechanized Materials Handling and Initial Mine Development Structures Provide description on the combination of decline and vertical shafts and drifts. and planning • Summarize environmental and social impact assessment and mitigation measures 4.0 ounce per ton (opt) .
4.3 4.• • • • Continuity along strike and down dip is sufficient so that a mine plan can be developed.4. the price of Barium had been set up until the subsidy was removed in 1947. Geochemistry can be more complicated with higher cutoff grades. and sectors have enjoyed relatively stable product pricing power. For example. and especially subsidies and tariffs. the amount their product will bear on the open market. during periods of war the government has also set tariffs for certain metals needed in production of war material. where either the price of precious metals on the open market was set by the government (or the government prevented open market trading).5 4. especially silver in the last quarter of the 19 Too.4.1 4.20 to 0 .4.5 Establish Capital Costs Cost of Mine Cost of Mill Cost of tailing.4. stable external costs. the US Government actually set subsidies for the production of precious metals.25 opt • Needs sufficient orebody size for bulk mining methodologies.4 4. in mining. Determining what something will cost in the future provided make-orbreak inputs for many industries.4. Narrow vein mining techniques Assumptions for Example Cutoff Grade: 0.3. Ca) could no .5 Establish Mine Life Define Pre-production period Determine Full production rates in terms of ounces Establish expected amount of metal description over life of mine Establish labor levels and pre-production and full production levels 4. Rock and Materials Storage Cost of Water Cost of Power Establish Operating Costs This component provides some of the most difficult problems in the mining industry. only more so.2 4. 4.4. one of the largest barium mines in the lower 48 states (El Portal. due to either stable demand. Mining does not enjoy such luxuries. Dilution is limited to 1 meter width. • Simple geochemistry • An older mine that already has most capital costs paid.
Capital costs required for startup and production through pre-production phase Annual operating cost in terms of Dollars per tonne Determine cash cost of each ounce gold produced in terms of dollar per ounce 4. water supply Infrastructure Study Administrative.5 Other Social Costs 4.9%) 4.5.9 State Feasibility Results Supporting Studies Technical Report on the Feasibility Study Environmental & permitting. Determine Cash Costs Mine Site Costs All-in Costs 4. massively shifted market demand by substituting metals in the composition of currency (silver.g.8 Establish re-tax Net Present Value (build in discount rate in terms of dollars (e.2 Cost of Milling 4. Compensation and Benefits Study V. 5. tailings. prices and markets for other industrial metals and.US$150 million) (ZAR 900.5.1 Mine Design .0 DESIGN Mine Plant and Process Design 5. nickel.longer produce wares and turn a profit.1 Cost of Mining 4. more importantly.7. zinc).3 Administrative Costs 4. Determine Cash Flow Expected average cash flow value per year Expected cash flow over life of mine 22.214.171.124 million) Determine Internal Rate of Return (e.g.4 Community Support 4. 18.6.5.
Beneficiation and Processing 6. Reclamation Large scale mining includes both above ground and below ground operations. to orient the gold within the column of material and then physically separate out the gold through a series of repetitive motions that rely on gravity to settle out the gold. Separation Separation via Gravity Separation works because gold is heavier than almost every other element found in ore and is heavier than the ore itself. Milling 7. Separation b. Extraction and Production 3. has a specific gravity ranging between 2 and 3.Mining design must first consider the scale of the operation. the process design includes: A) Conduct metallurgical testing B) Develop an ore recovery flowsheet C) Determine most efficient recovery process based upon local inputs D) Determine commercial viability of the following major mining processes: 1. 5. the rock surrounding the elemental gold which you wish to separate from the metal. whereas ore. Infrastructure development 2. .2 Above Ground A) Metallurgical Testing B) Recovery Flowsheet C) Recovery Process D) Commercial Viability Analysis 1. Flotation c. Pre-Treatment a. Infrastructure Development 2. Pre-treatment a. may simply consist of a one or two person operation conducted on an erratic schedule. The proper mining process depends on the ore mineralogy. Large scale mining consists of a regular process involving specialized labor and equipment. Refractory ore processing 4. Generally. Extraction/Production 3. Treatment/Recovery 5.
consisting of fines such as gravel and sand. a foam mixture of targeted minerals. the separation process cannot succeed. Alternately. As with wastewater treatment goals to produce ‘floc’. the movement of material within a water column. dry separation on placer lands works because colluvial action. This reduces grinding costs. At that point the foam can be separated via skimming. In mining the mineral concentrate is formed through addition of chemical conditioning agents then followed by settlement via mechanical agitation. multiple chemical treatment steps are required with generally involved bulk flotation products targeted for a flotation process designed to increase metal concentration. of agitated ore slurry which then develops a foam rich in mineral concentrate. • Spirals • Shaking tables • Centrifugal concentrators • Dry washers Separation via Flotation Flotation processes used in mining were developed base upon wastewater treatment technology. Flotation process produces gold with a rather coarse particle size. The premise is the same in each case: concentration and settlement of matter. has already separated the gold throughout a fairly homogenous lense of earth. The miners pan in the river works because nature has already separated out the flakes of gold into the stream bottom. chemicals are added to mineral slurry in order to produce ‘float’. Other methods for gravity separation: • Pans • Sluice boxes • Rocker boxes • Jigs: Pleitz Jig used for separation of nuggets from soil. the geologic process whereby gravity pulls down rocks from mountains. Mechanical agitation may include forced air circulation. keep flotation costs economical is the wise use of chemical additives that can . and alluvial action. The miner then simply finishes the physical separation process by swirling around the slurry so that gravity pulls out the heavier gold flakes into the bottom of the pan. the job through repetitive mechanical motions. Likewise. the chemical conditioning can be engineered to weight the flotation of other minerals and aid the physical separation. known as air sparging. Typically.The separation process will only succeed if the average particle size is relatively homogenous so that physical agitation can render out the heavier particles. Should the gold still be bound within large chunks of earth.
In mining. refractory ore treatment process is followed by conventional cyanide leaching. 3. Non sulfide Refractory ores include antimony. The idea is very similar to how soap works. 2. Pre-oxidation using Nitric Acid 6. how is gold separated? occurs where metal recovery also produces base metal by-products. arsenic. Bioleaching/Bioleaching: The use of bacteria in solution to strip sulfur. c. Roasting Roasting separates sulfur from ore through heat. Flotation Flotation is typically a pre-treatment for Cyanide leach recovery. where gold is found in association with pyrite. and tellurides. sulphide ore into oxide ores that can than be processed via standard techniques. The soap forms structure around the dirt. separation process becomes most suitable when the gold is in association with (form of ore) sulfides. Since roasting emits sulfur dioxide to the environment and therefore requires scrubbers to change sulfur dioxide into sulfuric acid. Lime/caustic pretreatment . the flotation concentrates are then shipped to the smelting facility for metal recovery. the surrounding soap bubble is light and therefore easily washed away. pyrrhotite (iron sulfide). Carbonaceous and gold copper ores with high copper contents also prove difficult to process.either be re-used or disposed of as a non-hazardous waste. b. The ore mineralogy determines the most economical process. Autoclaving (pressure oxidation) High pressure autoclaves that can operate under either acidic or alkaline conditions use a reactor uses chemical reaction and the physical processes of heat and pressure to oxidize sulfur. 4. Chlorination 5. For example. Refractory Ore Processing Refractory ore processing Refractory ore processing is conducted simply to pre-treat ore that will not produce metal vial typical cyanide leaching processes. Since we know that gold doesn’t float. Although the dirt particle is heavy. Refractory ore processing methods include: 1. the gold is surrounded by pyrite in an iron sulfide crystal which will form float.
It can mobilize some heavy metals like mercury (if mercury is present). Extraction/Treatment/Recovery Pre-Treatment Processing and Milling Series of grinding mills produce the aggregate into a slurry powder Treatment/Recovery 5.the ore containing minerals below economic recovery value. Additionally. called the cyanide process. began in the late 1800s and quickly replaced other common gold treatments of the day. recovery rates commonly between 55-60% is not as efficient as cyanide treatment with recovery rates around 90%.4. Examples include the Standard Mine in Nevada most recently utilized by Apollo Gold and the Robinson Mine/Pit currently operated by Quadra Mining ( Cyanide leachate process depends upon starting with ore that has been separated.expressed as [ ] of about one kg NaCN per tonne. older ore bodies and even tailing piles can again yield economical recovery loads. and sprayed with cyanide solution. collectively knows as beneficiation or processing. as mercury effects on human health became more widely known the process fell into disfavor. The high-grade ore is finely ground and mixed with the cyanide solution (concentration of about two kilograms NaCN per tonne). it decomposes rapidly in sunlight. Amalgamation Although still used by artesian mines in third world countries and small operations elsewhere. Beneficiation and Processing Economically recoverable base and precious metals must be separated from the waste material. Cyanide is highly reactive. also known as gangue . . As mining technology continually improves. Cyanidation Cyanide salts are used in silver and gold mining. again with concentration . such as mercury amalgamation. the amalgamation days are largely over in industrialized areas due to the high toxicity of mercury and subsequent abolishment via legislation. pretreated and ground so that the average particle size will fit through a number-200 mesh screen.
can be used for specific types of ore. The solution can then be reused for additional leaching.A slurry is developed by adding sodium cyanide to ore combined with water. the settlement will not properly occur. At this point the slurry is known as pregnant solution. Sulfuric acid 4. the miner-operator must exert continuous vigilance. For example sulfuric acid may be used in copper and uranium recovery. Retention or residence time is how long the slurry must remain in the agitator. typically between 12-36 hours. Other lixiviants 1. amount of lime and sodium cyanide required depends upon the type of ore being processed. The miner must not only maintain the chemical properties of the slurry. where passage of material through a reactor finds a short cut and does not follow the entire engineering/process route. method for uranium recovery. though controversial. but also the physical properties such as percentage of solids. Thiosulfate 5. This process may require further chemical treatment in a thickening tank. Quick lime is added to keep this slurry mixture with a basic pH. is usually zinc precipitation and cyanide is removed via the procedure known as counter current decantation (CCD). The pregnant liquor is separated from the leftover dirt. vacuum filters in series followed by tailings washing can remove both the remaining metal and cyanide precipitated from the solution. Also. Chlorides 3. treatment is the modern. metal is recovered from the pregnant solution with zinc dust that replaces the gold in solution or by absorption onto activated carbon. formulas in short circuiting. Although cyanide has become the industry standard. The precious-metal cations bind to the cyanide anions and forms soluble cyanide. Bromides (Acid and Alkaline) 2. other leaching agents. around 11. Once the metal has separated from the slurry the liquid component is then decanted. Required cyanide amounts can vary between 1-4 pounds per short ton of ore. is not set right. which is discarded to a tailing pond or spent (the recoverable gold having been removed ) heap. This is important because the slurry must move through a series of agitator mixing tanks. known as lixiviants. Thiourrea . Settlement time also depends upon the capacity size of the agitator system.
agitated leaching is a very quick process compared to other types of processing methods.2 Heap leaching Design heap leach pad and environmental effects and permits required.2 3. The Cyanidation process will typically include some or all of the following operations: 3. Heap leaching has gained favor. is then recoverable at the bottom of the pile.1 • • • Zinc precipitation recovery Agitated tank leaching Agitated cyanide leaching in a tank is the fastest method for processing gold.Cyanidation is the processes currently in favor amongst worldwide mining operations due to the economic application. advantage of not requiring large amounts of space and can be conducted indoor which also allow continuous processing even during inclement temperature and climate. Heap leaching allows the profitable recovery of gold in ores that were previously considered played out. down to 0. especially in Australia and Nevada.4 3. from the solution via carbon adsorption or zinc precipitation and the barren solution is then reused in the system. because it provides economical recovery on ores with very low gold contents. Some of the drawbacks of heap leaching are: . Some of the drawbacks of agitated leaching are: Very energy intensive Requires solid/liquid separation before processing Requires intensive disposal or reclamation of tailing spoils Requires ore with high gold content and a small particle size (200 mesh) 3. This process can remove up to 90% of gold in high quality source ore once the ore has been made very fine through stamping and milling.01 oz/ton. lined basin where cyanide is evenly distributed over the ore. Additionally. cyanide solution.1 3.3 Agitated tank leaching Heap leaching Carbon adsorption recovery Carbon-In-Pulp (CIP) Carbon-In-Leach (CIL) Carbon-In-Column (CIC) 3.
The process was simple and worked on both gold and silver via simple substitution. especially in ores with high clay contents Environmental effects These drawbacks. A pregnant/clarified solution is passed through de-aeration towers so that oxygen can be removed from solution. 3. Carbon-In-Pulp (CIP) Carbon-in-pulp recovery does not require liquid separation for leached ores and . The mine plan should summarize the environmental and social impact assessment and required permits for the tailings dam. especially the environmental issues have caused great concern amongst many communities in geographic areas with potential economic ores but without a strong mining economy.4 Zinc precipitation recovery Zinc Shaving/Precipitation Zinc shavings in barrels served as an early mining process. 3.4 Carbon Adsorption Recovery Stripping (Gold removed from carbon via caustic solution) Granular activated carbon effectively recovers gold from cyanide solutions in a variety of applications such as fluidized bed columns or slurry leach/separation. currently anti-cyanide. process was not very effective and did not enable the amount of recovery necessary especially for lesser ore bodies. Activated carbon adsorbs gold cyanide old which is then treated with hot caustic and cyanide to reverse adsorption – effectively stripping carbon of gold. resultant gold precipitation is recovered on a plate and frame filter press One rule of thumb is that ore with a silver:gold ratio of 4:1 or more could still use Merrill Crowe process.Ineffectiveness in cold weather Problems with precipitation input Problems with adequately and evenly precipitating solution over all ore. The gold can then be removed from solution by electro winning. Merrill Crowe The Merrill Crowe process replaced zinc precipitation after WWI.
Screening and processing in agitation tanks removes the gold from the carbon. The CIL process will frequently be used in small cyanide mills to reduce the complexity and cost of the circuit. allowing gold. Countercurrent Decantation (CCD) 6. Optimization Algorithm for Mining Pit Design 2. Since gold is finer than carbon. Floating Cone 3. activated carbon added to the leach slurry where is adsorbs gold from out of the slurry solution. removing the solids. Surface Mine Design 1. so the gold will be preferentially adsorbed by carbon that can be recovered for stripping. allowing recovery of metal ore from heap leach solution. Lerchs-Grossman 4.instead uses gravity separation or filters. with gravity. The carbon adsorbs gold as soon as the gold separated from the cyanide. these smaller particles will pass through a smaller mesh size than the carbon. Carbon-In-Column (CIC) Carbon-In-Column (CIC) employs pregnant solution flowing through fluidized bed columns set up in series. Critical Factors . preventing the native carbon from "preg-robbing" (removing gold from the pregnant solution) the valuable ore and holding onto the gold rather than allowing separation. The carbon added in CIL is more active than native carbon. Carbon-In-Leach (CIL) Carbon-in-leach integrates both the leaching and carbon-in-pulp process. heap is then flowed reverse through columns. Milling A series of grinding mills produce aggregate into a slurry powder. These columns separate our solids from ‘thick’ solution. CIL proves especially useful processing gold ore with naturally high carbon percentages as the activated carbon will preferentially remove gold. but not carbon. Leach tanks are retrofitted with carbon retention screens – removing CIP tanks from the process. carbon is added to leach. Instead. to settle out through the filters in column.
Treatment/Recovery 5.4. Reclamation Underground The two primary underground mining production methods are variation of stoping techniques called Room and Pillar and Shrinkage Stoping.2 Ore Tonnes 4. Flotation c.0 Below Ground A) Metallurgical Testing B) Recovery Flowsheet C) Recovery Process D) Commercial Viability Analysis 1. Reclamation 6. and the CIL plant are hot commissioned (operated with material). critical in any mine plan. also provide ventilation and access ways into ore removal areas. 4. Extraction and Production 3. 7. Processing and Milling 7.1Strip Ratio Pre-stripping and inventory build-up. grinding circuit. return establishes operations at the mine. many tones of ore must be crushed and staged at the crushed ore stockpile. Beneficiation 6.3 Ounces Produced 5. Refractory Ore Processing 4. Infrastructure Development 2. This is where a higher grade zone will allow establishment of a pit that has low production costs but high return.0 Net Present Value (as is NPV Curve) The best situation is where heterogeneous grades allow establishing a 'starter pit'. Pre-Treatment a. . Separation Gravity separation b. Before the crushing section.
Typically a winze does not open up to the surface. Tailings. Shrinkage Stoping Large stopes are created in mine body when miners access the ore through a subdrift that carves out the ceiling. The rooms have support columns. Mining engineers may sometimes provide additional structural support to the roof and pillars where necessary. workings. the structural ore can be removed near the end of mine life. perhaps seeping from underlying alluvium. drainage tunnels. stockpiles. the economical mineral must remain as structural support. the mine plan may contain a ‘Safe Harbour Statement’ explaining the applicable technical caveats and all expected risk factors that may impact expected mine life quality. Large amounts of broken ore are allowed to fall to the floor and remain in the stope until the stope is complete. ventilation Shafts. structures. However. holes or depressions. but instead leads to another level of the mine. Shafts run vertically. spoil banks. Stopes provide the primary access by miners to ore. An 'Inn Tunnel' is a horizontal adit (sometimes called a “qanat”) constructed specifically to intercept and collect unconfined groundwater. dams. The miners can build multiple layers of rooms in this fashion. Cut and Fill SX-EW extraction Infrastructure Design Roads. down are called a winze. refuse banks. almost like a highrise . you enter the horizontal opening which is called an adit. overburden piles.but below ground (a lowrise?). recovered should the operators turn to strip mining methods later on at the property to recover all economical minerals as ore and waste heaps left behind. impoundments. dumps. . called pillars. allowed to collapse. which bear the load of the rock above to prevent collapse. Terms and Definitions On a hardrock (lode) mine. Mine Plan Summary As with other ‘forward looking statements’ governed by regulators. or facilities).Room and Pillar The miners remove ore in such a manner that rectangular rooms are excavated from bedrock.
and logistic particulars. Processing Processing costs are more expensive than extraction costs Sulphides are more expensive than oxides. geographic. Oxides can be leached. Sulphides must be crushed then roasted before milling.quantity and economic return. Capital Cost Summary Mining Pre-production Plant and Infrastructure Socio-Economics Operating Costs Example Operating Cost Summary Mining . Underground Underground Hard Rock Mining Install additional adits. Prevention.0 General Mine Design Acid Mine Drainage Treatability Studies and Plant Design Hydrologic Investigations and Predictive Studies Water Resource Inventories Cost of Compliance Determinations Preparedness. PRODUCTION: Aggregate Removal Surface vs. stopes and winzes Surface Mining (Open Pit) Open Pit Surface mining is the most common mining technique in North American resource extraction. the actual extraction process will vary from mine to mine depending upon the geologic. 7. same. and Contingency Planning Post-mining Land Use Planning Mining Laws and Regulations Mine Subsidence Planning and Mine Subsidence Control VI.
and Sizing 6. Back in the old days miners used dynamite to do this. Separation. the platform for building roads and infrastructure to continue mining on the next level down. explosive charges are placed on the cleared land to break up the underlying consolidated material (bedrock). Surface drilling Overburden Removal is the use of large equipment to move massive amounts of material on the surface of topsoil and unconsolidated soil. 4. a series of cutbacks known as benches are established. in hardrock mining underground) As the aggregate ore is removed and pulled back and the open pit grows larger. the ore and waste rock (muck) are cleared with heavy equipment (dozers and loaders) to facilitate removal from the development zone to the production zone. . Hauling 5. Grinding. Milling 8. The primary crusher reduced aggregate size so that the ore may be more economically transported to the mill via additional conveyance systems. 3. Loading and Mucking Once the blasts occur. Loading 4. Blasting 3. Surface drilling 2. Refining Administration Total (milled) Processing 1. Processing 7. Blasting Once topsoil and unconsolidated soil are cleared. Hauling and Primary Crushing Heavy equipment or a series of conveyance systems moves blasted material to the crusher.Environmental/Reclamation Processing 1. Smelting 9. Milling. 2. blasts are electronically controlled explosions of plastic explosives.
direct and indirect operating expenses Direct Operating Expenses Mining costs. refining costs. milling and recovery) Processing Operation Costs: Royalty payments. Run ore into semi-autogenous grinding machine (SAG) Remove large rocks Pump remaining slurry (small rock @ 70microns) through trommel to sump Run slurry through primary and secondary hydrocyclone Regrind large rock at SAG mill Dispose waste ore material. When the grinder is rotated. and refining costs. the ore is ground into a finer aggregate by getting pummeled by the balls against the metal sides of the grinder. reclamation costs. Separation. Milling costs. mining costs. Milling. 5. After ore is crushed it is fed into a very large metal container that contains steel balls. Labor 50-60% of all mining costs Power 30% of all mining costs Water Indirect Operating Costs Reclamation costs Royalty payments Accretion expense (operation shutdowns) Depreciation and amortization Loss from continuing operations Loss from discontinued operations . known as gangue Beneficiation – leaching. Grinding. Processing. trucks or rail lines.pipelines. and Sizing Separation Separate ore from topsoil (topsoil used in reclamation process) Stockpile ore at processing plant Convey and lime ore Crush ore (jaw crusher. cone crusher) Grinding (ball grinder). milling costs. smelting.
(Remove gold from the solution). Completion of a Fuller Traylor gyratory crusher. associated conveyors. http://www. carbon granules and cyanide) through carbon-in-leach and/or carbon-in-pulp process. The miner move the slurry through series of carbon absorption tanks. Install grinding and classification section . for uranium mining. d.Exploration and Business Development Interest Income and expense Foreign exchange loss and gain Environmental Compliance Reclamation and Severance Administrative Expenses Legal Accounting Stock based compensation Leaching and Absorption Traditionally cyanide leaching was done in vats and precipitation used zinc boxes.aph. crushed ore stockpile and reclaim system b. Install blower system for BIOX tanks. Construction of CIL tanks are currently c.au/library/pubs/rp/1997-98/98rp12.gov. Ore/lime slurry is then moved to series of tanks where sodium cyanide solution is added. we look at the Golden Star production system at it’s components include: a. For an example of an operating BIOX circuit. superheated water (called pregnant eluate).htm#TECH Processing Sulfides using a BIOX circuit. For copper. In-Situ Leaching (ISL) This article does a great job explaining in-situ leachate process as used in Australia. The miner develops slurry (slurry of gold ore. Solvent extraction (SXEW) is a type of heap leaching and subsequent processing used to treat secondary copper ores.
pour into bar moulds. antimony. Smelting 9.htm Next step: Transport to the Smelter. Remove metal. 2. Refining Move pregnant eluate through series of stainless steel cells containing cathodes (gold attaches to cathodes). Build and install BIOX 7. showing large rows or strips of mined earth hence the name 'strip mining'. carbon.com/goldrecovery. Build Cooling tower and f. . Roasting: Put yielded sludge into drying furnace (1200 degrees C). Mining proceeds in a linear fashion.e. arsenic and other impurities. Smelter Treatment SURFACE MINING (Strip Mining) Phosphate mining is primarily accomplished through strip mining. 1. Overburden Removal Horizontal near surface removal or ore and waste rock. Treating ore by heat or oxygen-enriched air can remove sulfur. Milling Mineral Processing – Smelting and Refining 8. Excavation and Extraction Ore and waste rock is removed from surface excavations using heavy equipment such as draglines or front-end loaders. remove dore (80-90% pure) Send to refinery to increase bar purity Gold Reduction with Aqua Regia ( Via Shor method http://shorinternational.
polluted groundwater or created other environmental issues. Phase I. That results in potential liability left from the last site operator who may have left behind toxic waste. SOLUTION MINING VII. Ore Transport Some mines transport phosphate as a slurry through above ground pipelines to the processing mill. Many mines are shut down by regulators . matters of concern could include improperly abandoned leach pads. at least in N. ENVIRONMENTAL. Environmental firms hire a Registered Environmental Assessor to conduct the Phase I surveys to look for Recognizable Environmental Conditions and other matters of concern. mercury balls.or at least prospected . or other negative lasting impacts The reality on the ground is that most potentially productive mine lands. regardless of who actually created the mess. acid-mine runoff and the like.before. rail) are used most often. II and III.meaning the regulators will go after both the present an previous owners of the property. mining operators reclaim minimizing permanent land scarring. Finally. PERMITTING and RECLAMATION Mine operators must receive a series of production begins the operators must meet a host of regulatory requirements and keep their production within environmental parameters specified by the permits. hazardous materials. Primary Crushing 4. America. Due Diligence Property Assessments for Acquisition and Investment Environmental Site Assessment. stage begins where the last operation left off.3. for violating environmental requirements. Environmental responsibility provides a pillar of mine operations. Since most environmental liability is joint and several . include structural lead and asbestos. and abandoned and leaking underground storage fuel tanks. contaminated water runoff. have been worked over .or at least face some type of administrative of legal actions and sanctions. Environmental Liabilities and Risk Assessments . These investigation documents are governed by American Society of Testing Materials (ASTM) standards. operations also presents a series of environmental management issues.often forced by community action . poly-chlorinated biphenyls (PCBs) left in old transformers.
Reuse.) necessary to process and extract ore deposits. etc. AND .PERMITTING Nevada Department of Environmental Protection Mine Permit based on: .Conceptual mine plan OR an engineered design stage. • Reduce toxic wastes (both quantity and quality) at the source • Re-use of input materials • Reduce. Recycle.Reclamation Bond must be replaced via new bond. or satisfied via reclamation. licenses. Pollution Prevention • Waste Reduction • Prevent impacts through administrative and engineering controls before they occur. .Inferred Resource Report The Mine plan is best served with concurrent development of environmental studies since the Mining Permit is actually a series of permits.Plan of Operations and gathering base line information for the Environmental Assessment . and notices: • • • • Annual Permit Air Quality Permit Exploration License Notice of Intent (NOI) Example NOI A Notice of Intent may allow a miner to take a 1000-ton bulk sample and commission those workings (bypass tunnel/decline.Three year review by Bureau of Land Management and NV Department of Environmental Protection ENVIRONMENTAL OPERATIONS I. Environmental Management 1.Reclamation Plan/Permit (not transferable?) . • Water Pollution Control Permit • Storm Water Discharge Permit. interim bond. • Permitting efforts for a larger mill and underground mine including: . RE-think Hierarchy of Pollution Pollution .
maybe we just stop mining for 20-30 years or so. eliminate the hazard or source of pollution at the outset of planning and design.Reduction If you can reduce. substitution and elimination • Select options • Develop implementation workplan • Execute workplan • Re-evaluate and Re-think options upon change introduction of new materials. • Determine best practicable (benefit/cost analysis) opportunity for reduction. Pollution Prevention (P2) Assessments are relatively simple.com. resources use. personnel. transportation. equipment or personnel into process Specific examples of pollution prevention practiced by mine operations include: • Watering down open pits to reduce soil erosion by wind • Sitting Waste piles away from water bodies/eliminating potential to contaminated groundwater sources • Proper storage. material and water inputs • Determine existing waste stream • Examine available research. and see what happens. there is no need to manage/plan/abate/respond/remediate the hazard and its negative effects on operations. • Isolating acid-producing waste rock and preventing release of aciddrainage • Use of drip rather than spray leaching • Use of scrubbers on stacks to reduce air emissions. • Focus on a process • Determine energy. social and environmental problems roiling beneath the surface. and regulatory burden. pollution prevention.amira. or better yet. though comprehensive analysis of all mine processes and operations and identification of controls that could be implemented to reduce environmental impact. conducted by environmental specialists or consultants. use. transportation and disposal of hazardous materials and wastes. handling. and environment when things go wrong at a later date (and they often do go wrong!).au/?section=about&page=top Then again. Pollution Prevention Opportunity Assessments. posing inquiries into strategies and approaches for the next few decades: http://www. are one way to begin this process. literature and resources specific to the process and waste stream Australian Mining Research Collaboration The mining sector appears grossly undercapitalized. . fundamental vision how the industry will meet the energy.
citrus-based products and enzymes). • Reuse mine water for maintenance purposes. Spill Prevention and Control Fuels Fuel storage is governed by the Spill Prevention Control and Countermeasure (SPCC) provisions of the federal Clean Water Act (CWA) and portions of the Resource Conservation and Recovery Act (RCRA). in the beneficiation process. especially when inflation-adjusted for today's rates.gov. prevention still buys more than a pound of cure. RE-Think The most important one of all. or for habitat (wetland) restoration and maintenance • Process tailings • Recycle scrap metal Reclaim Leave the site a little better than you found it by providing habitat for returning species.deh. spills can be minimized by proper planning. design and engineering of fueling . releases through use of secondary containment on fuel tanks and doubled walled tanks with emergency notification and alarm systems is much cheaper than containing and remediating fuel spills after they occur.au/industry/industry-performance/minerals/booklets/ 2. Reuse/Recycle • Reuse conveyance piping • Reuse non-acid producing waste rock for hillside stabilization or bank stabilization (rip-rap) • Reuse solvents (where not reduced through substitution of bio-based products. Australian Sustainability in Industry Site: http://www. Product substitution when combined with process controls and capital improvements make for synergistic environmental controls that save money and time in the long run but require capital expenditure upfront. the operation can lower the overall potential negative effect to human health and the environment.• Support of local community environmental projects Prevention By substituting a less toxic material for a more toxic one. inspection and response ensures consistent and ongoing spill prevention. taking away all the junk (even if it isn't yours) and providing some social and economic benefit tot he local community and stakeholders.
a fuel needs analysis may show that less fuel is required than originally envisioned. Of course. containment. operate and especially . catastrophic failure also can occur due to improper engineering or natural or main-made (accident) disasters.where clay. critical minder in mining operations. dumps and tailings.systems. dyes. occasionally fail through undermining . so does the cleanup of historical cyanide spills.and hence potentially dangerous ones when misused . For example. The trick is wise and beneficial use that eliminates worker safety issues and environmental degradation.then a 10. Hence. as in all other industries. operators store supplies of reagents. especially on N. uses the beauty of chemicals to increase efficiency. Cyanide tailings ponds and retention basins have occasionally attracted migrating waterfowl. Mining has historically relied on powerful chemicals . Miners use a variety of chemicals during day to day mine operations. A 5. may have deleterious effect on vegetation and wildlife and even the company's bottom line if the state of federal EPA assigns fines.to process ore.000 gallon tank when spills do occur. Cyanide In base metal processing. fake bird predators. using high-pitched bird alarms and even installing nets across the tailing ponds.cleanup . Acids and . polymer or geotextile linings release cyanide solutions into the environment over time.000 gallon fuel tank is easier to manage. America flight routes. unnoticed yet steady. storage and transportation pose potential problems. Cyanide and mercury are just two chemicals falling under this category. use of alarms. and less costly to maintain. leading to both acute and chronic poisoning deaths. protection from hazards and the elements) and handling (using proper equipment) of hazardous chemicals can dramatically reduce incidents and accidents. consultant. not only does cyanide use. lubricants. Chemical Management Every mine. develop chemical management plans to effect this process. For over a century the industry has used cyanide to separate gold from ore. petroleum. Use of cyanide (especially sodium cyanide [NaCN] economically productive in the 1970's and dramatically increases the amount of cyanide used in mining production. cyanide helps depress Iron Pyrite (Fe2) in flotation circuits. solvents and other chemicals necessary to run a modern mining operation and maintain all the associated equipment.
2. of oil will cause a sheen on water bodies. Organisms that depend upon aquatic life for food will also suffer as their food supply declines. 3. Wetlands (and dependent vegetation types) Disturbing land.bases provide efficient means of managing the ore. Mitigation Measures Maintaining. including the removal of vegetation . that indicates the entire ecosystem may be stressed. conservation of resources. Terrestrial (vegetation that serves as cover and nesting areas and geology/soils and air). first by non-native exotic species which become established and begin to change the ecosystem type. Removal of vegetation also removes arras where animals and birds find forage. Aquatic organisms are noted as indicator species. In turn sedimentation can reduce available oxygen and increase turbidity which reduces available food supply and impacts aquatic life. This creates new patterns of vegetation and animal habitat. and in between. reclaiming.the ecosystem which supports life. streams.also removes habitat and food sources for local creatures. becomes a waste which also needs proper handling storage hauling and disposal. rivers and other surface water features). Release of even minor amounts of these materials and wastes into the environment can cause human health ecological problems. components: 1. . Preventative maintenance goes a long way in many endeavors. and rearing grounds. That is. water and waste streams. and hydrocarbons make it all go. Habitat Modification and Taking Habitat is that biological component of the underlying environmental fabric . Since reclamation has an uncertainty (the vegetation may not grow back to pre-mined conditions (as is usually the case to some degree) the best mitigation measure is to maintain the environmental conditions in as good as a condition possible while mining operations continued. the 3. Natural and Cultural Resource Management Through careful environmental planning and mitigation. and revegetating mined areas provides the best opportunities to maintain and restore ecosystems that are being and have been mined. Erosion from disturbed areas runs into surface waters and causes sedimentation. and being a good steward of the underlying environmental fabric the mining operation will actually increase profits and reduce unnecessary outlay. Solvents are used to clean vehicles. releases prove even more expensive and time intensive than purchasing and managing the chemicals in the first place. if their population health is not good. shelter. Aquatic (lakes. lubricants and oils run vehicles and equipment. including environmental management.
the area between ecosystem types. The more water that is removed form means that all the sediment. Removal of groundwater can cause land subsidence. loading. the headworks and used to recirculated through the beneficiation process. This water either must be dewatered or controlled to allow continues mining. Air Quality Just as mining operation may impact soil and water. 5. Pit design also provides a great opportunity to reduce potential hydrologic impacts at the project beginning. and ultimately . metals. Fugitive Dust Emissions are created through handling and processing ore in all stages such as ground disturbance. reducing the amount of water recirculation. and as such offer highly diverse fauna and biota. and contaminants are more concentrated in the remaining water. demands incredible amounts of water and causes many of the negative impacts on water sources associated with any mining operation. Much mining in north America takes place in very dry areas where the only available water ins groundwater. is very costly and takes a very long time in most cases. After mining operations stop. in contact with the water. buffers also functions as an ecotone. Proper installation of earthen and geotechnical liners under ponds and piles will reduce the potential impact to underlying groundwater resources. which often serves as a drinking water supply in rural areas. Water quality and quantity are directly related. This in turn keeps the oxygen high. In particular.withdraw needed to support the mine. Vegetation reduces erosion and resulting sedimentatio 4. so too air media. blasting and mucking. Power and Water Conservation Mining operations often demand large quantities of water. beneficiation.Vegetation Vegetation buffers provide a variety of highly beneficial ecosystem processes. the wate5r collected in the bottom of the pit will leach out metals from the host rock. conveyance with machinery and equipment. stage can help achieve significant water reduction during the operation stages. The development and use of the transportation system creates a large percentage of dust emissions as vehicles stir up dry particles into the air from unpaved roads. recycling. They serve as stormwater biofilters which capture erosion runoff and therefore reduce deposition into streams. and could turn good groundwater into a possible remediation problem. The mine pit often draws in water into the bottom of the pit. Release of contaminants into groundwater sources prove especially troublesome as cleaning up contaminated groundwater. .
Originally the waste rock was piled. to hundreds of feet high and cover hundreds of acres. often called overburden. extraction location in waste piles or 'dumps'. in some cases many miles away. The major mitigating measures used to prevent or control fugitive dust emissions include spraying water from a tender truck to wet down exposed surfaces and prevent wind or vehicles erosion. physical and chemical characteristics of the waste rock. depression. Pm10 etc. called particulate matter. waste rock down stopes that were no longer of use. Spent Ore Miners move spent ore from the leach pad to the final storage/disposal location in a process called off-loading. Other concerns regard the size of the particulates. is measured as microns across the diameter (Pm2. III. and increase water turbidity.leveling the topography with spent ore and mine wastes. Mine operators have consistently developed improved management of waste rock. Waste Rock and Spent Ore Management Waste Rock Waste rock. where it settles out of the air into surface water bodies. Miner operators must remove this waste rock to access economic ore. rock on non-working surfaces to reduce wind erosion potential. pit mine that are completely played out or waste pits .). miners can use the rock as aggregate fro access and haulage roads. these waste rock piles may become economic. beneficiation procedures improve.including areas specifically . is uneconomic ore and other soil and rock material overlying economic ore. stream stabilization (rip-rap) and for surface impoundments. These very small particles can create health hazards since they are small enough to evade capture of the hairs (cilia) lining your throat and end up lodged in your lungs where they then may create or exacerbate respiratory multi media transport.Air pollution typically comprises organic and non organic material that creates potential health hazards. Long term measures typically concentrate on reclamation which establishes new vegetation which anchors the soil in place. heavy materials or organic contaminants. ravine or valley that the operator is filing in . Rock considered waste 100 years ago may well produce economic grades today.5. Very small dust particles.
both fine and course. this spent ore may present similar environmental threats as the waste rock or mill tailings. Operators can line these disposal areas to make them impermeable by laying down various layers of gravel. Detoxification is often conducted to raise the pH of acidic rock toward neutral (ph = 7. an operator may use alkaline chlorination or biological or enzyme solution treatment. recirculated and untreated process water or hydrogen peroxide. As methods of detoxification miners may utilize fresh water. are waste materials that have already had economic metals and minerals removed from the ore and now require management in order to prevent environmental degradation or interfere with mine operations. spent ore will always posses some level of the targeted ore metal (in addition to other metals present). Miners typically extract all the economic minerals possible from an ore. Tailing. placing a non-permeable barrier on top of the tailings (spoilings) pile will prevent rain from contacting the waste rock. One way to prevent this is to break the portion of the hydrologic cycle which comes into contact with the mill tailings. Mill Tailings Mill tailings are the remaining materials after beneficiation. the size is usually between gravel and pebble. Mill tailings. 3.which contribute to acid water discharge. like waste rock and spent ore.such as cyanide (or remaining arsenic or mercury from the old days) and the by-products of those treatment materials. and non-economical metals present such as selenium or mercury. or processed ore. diatomaceous earth. Operators typically to process spent ore in place. processed. is called spent ore. Operation Compliance Audits III. and hence benefit from many of the same preventative management techniques. The remaining uneconomical ore. but will occasionally move them to dedicated waste dumps or no longer active portions of the open pit. sulfides . or as close as possible. . have process solution present . Also.designed to accept tailings and spent ore that might have acid runoff or other discharges which might affect water quality. can leach into groundwater and cause negative water quality changes. and geotextile membranes which eliminate. reduce or control infiltration to groundwater. process is conducted on the leach pad to enhance final leachate and extract all remaining economic metals before declaring the product as a waste. operator may pre-treat the spent ores and waste rock before disposal in a process called detoxification [US EPA.0).
ability to compact. The parent material. into an impoundment.html Tailing Dam Closure in the EU http://www. The slurry produced is the waste product of ore beneficiation and metal recovery. generally one-third solids and twothirds water. The solids at this are point are small. but increases process time and cost. Mine water can basically be separated into those waters that runoff the surface or infiltrate into the earth versus those waters used in the . Leaking impoundments pose a two-fold threat. or draws to level out topography and secure piles out of the operation area. plasticity. through pipes via gravity. Impoundments are either created entirely or partially from existing topography to create a dam such as side-valley or cross-valley impoundments. mine water is the entire flow through a mining property. This eliminates the need for impoundment reclamation. both below and above ground.potentially leading to catastrophic failure. its chemistry reflects both the host ore and the beneficiation process(es) used. impoundments entirely created include designed pits or elevated berm-ring dike. mineral content. In some cases.clotadam. etc.such as steep hillsides or canyons. This prevents runoff from the waste pile from infiltrating into the soil and then coming in contact with groundwater. leaking impoundment may undermine the structure integrity of the impoundment basin .impermeable layer. physical and chemical characteristics include pH. color. these characteristics drive the probability and degree to which the tailings may leach contaminants into surface or groundwaters. The tailings exit the mill and are then typically deposits. leach ability constant. Tailing Dam Safety http://www. particle size. Secondly. especially in areas where land is at a premium . determine the physical and chemical characteristics of the tailings.com/ IV. basically clay and sand size with some pebble-sized aggregate mixed in. In turn. additional water does not in the meantime infiltrate through the soil into groundwater. leaking tailing water may impact underlying aquifer or down-gradient surface waters. Impoundments are constructed with impermeable layers so that the as the tailings eventually de-water through evaporation. the tailings are dewatered and dispose of in a pile called dry tailing disposal. Mine and Process Waters Generally. such as geotextile fabric or clay (or both) and then placing the waste rock on top of this barrier. Tailings exit the milling process as a slurry. First.wise-uranium. or ore.org/mdas.
and other characteristics of the host rock that have been concentrated via the mining process pose potential environmental issues if not addressed before release. and the Aquatic organisms that depend on that groundwater . of water in an underground mine will determine how much needs to be pumped out. or through adits and other entrances into the mine. pH. tailing stockpiles or from adits to oxygen releases precipitates which lead to acidic water (pH below 7) which can then runoff into nearby waters. Adolphus Sutro made a name (and a fortune) for himself by completing a tunnel that de-watered the Comstock and allowed production to continue in the mines. the Comstock Lode is only 18 miles from a major geothermal source at Steamboat). a process called dewatering. known as process waters. Though not an insurmountable problem. The quality of water running over mine tailings. Acid Drainage Liquid effluent that becomes acidic through oxidation of Pyrite (FeS) and other metal sulfides. This in turn impacts production costs. metals. wreak havoc on an operation for reasons of both quality and quantity. reflects the parent ore body and local geological and hydrological properties. remember.which may express as surface water and wetlands down-gradient. Mine Water Water enters a mine either through percolation through the soil and via fractures in the bedrock. Acid mine drainage can lower pH of nearby waters and impact the health of . or must be mitigated during and after release to the environment. and direct precipitation into tailings ponds and on heap leach pads create environmental quality problems that mine engineers and environmental scientists must manage. Mining engineers will drawdown the groundwater in underground ore areas in order to better access economic deposits. Release of these metals into the environment is one primary source of acid water runoff. this situation adds costs to production. the yellow-red water associated with acid runoff. waste ore. In fact. example.production and beneficiation stages. turbidity. temperature. Additives such as cyanide introduced into the beneficiation process. Dewatering can have environmental impacts on water resources down gradient of the mine. another in a long list of factors that made mining physically uncomfortable. have great ore remaining but cannot be worked because the amount of water in the shafts makes removal uneconomic.
Erosion and Sedimentation The soil scientists definition of soil is that it is formed in place and has the ability to support life. zinc. amount of rain and wind. wind. The primary strategy . Sedimentation decreases sunlight penetration into the water column which lowers ability for photosynthesis. such as locating pile runoff away from receiving waters or controlling runoff from the piles provides the most effective solution for reducing environmental impacts. and the soil produced by weathering of that parent rock.can be met through implementation of subsurface barriers. and damages ability for aquatic organisms to thrive. Generally. containment ponds. subsurface drainage systems and treatment units. or physical methods to another location than where it originally developed in place. Hydraulic head gradients created by tailing ponds can cause groundwater mounding where local groundwater flows are altered. and removal . 1997]Mitigation measures are employed after engineering controls fail. Certain bacteria present in soil can further increase and complicate acid water production. grade/slope. especially aquatic organisms and vegetations that are negatively affected by metals (especially aluminum. clogs fish gills. into water provides a major source of surface water quality degradation throughout the world. Use of beneficial bacteria can also control and treat environmental problems such as acid water runoff. .vegetation. Deposition is the term used to describe soil erosion deposited onto land whereas sedimentation is when the erosion deposits soil into water. sedimentation may lower the biological oxygen avail be to aquatic organisms. water. Erosion is where the parent rock. Factors affecting erosion rate and degree includes the type of parent rock and soil. Proper design. tailings ponds. measured as Total Dissolved Solids TDS). Loss of minerals and structure in the topsoil lost through erosion can greatly prevent future reclamation efforts.reduce flow of water into the outside environment . since they are usually the most time consuming and expensive way to manage a potential environmental problem. surface waters and behind check and coffer dams or other types of containment barriers pose problems than must be mitigated and managed. cadmium) at low contaminate levels. groundwater pumping systems. mining location in the western US are within arid climates with high soil erosion potential to begin with. [USEPA.nearby ecosystems. is moved through gravity. Proper engineering controls and mitigation measures can be utilized to reduce the amount or acidity of the runoff and thus lessen the negative impact on surface or receiving waters.or lack of .
collapse. when too many underground voids (caverns. Controlling sedimentation provides one the greatest bang-for-the-buck mitigation control measures available for both long and short term erosion. riprap. and the methods of underground mining employed.especially benthic invertebrates and further degrade food and spawn sources. Generally localized subsidence produces troughs or depressions on the ground surface caused by surface erosion where water collects. and related control measures can eliminate or at least reduce the amount of sedimentation making its way into surface water resources. Subsidence Another potential problem that mining engineers monitor and design to prevent is subsidence of land. shoring. sinkholes form the underlying supports (columns or shorings) fail and the overlying strata collapse into the voids. Mass wasting and collapse slumphing are examples of localized subsidence. slow the rate and force of overland water runoff. for environmental contaminants such as heavy metals. underlying geology. have dropped in excess of 20 feet in the last 60 years and form a great example of land subsidence on a large scale. placement of filters. . use of geotextile mats. The likelihood and degree of subsidence relates to the geologic. and can itself cause a cave-in or sinkhole. construction of sedimentation dykes and basins. Controlling sedimentation runoff through use of storm water management Best Management Practices (BMPs) . Both minor and more sever subsidence can alter local hydrology. In more serious localized subsidence. Treating and filtering stormwater flow. Reducing stormwater rate lowers the overland competence . or replacement of tailings for most recently removed ore. However. and especially. stopes. etc. Stormwater BMPs include those technologies that will reduce soil erosion. draining surface water feature such as ponds or streams which further exacerbates erosion and subsidence issues.developed in the Stormwater Pollution Prevention Plan .) have been developed and the land then collapses. aquifer has been excessively drained. and hydrology conditions of the surface soils.can prevention to mitigate sedimentation impacts on nearby water resources. and contain filter and treat stormwater runoff before water enters surface resources.especially the type and use of pillar supports. the potential for erosion and subsidence issues by increasing the amount of mine water recycled through the process and thus not deposited onto the ground. timbering. Traditionally engineered room and pillar typically leaves enough support to prevent cave-ins. long wall mining. fence. have higher chances of collapse. subsidence and cave-ins require proper use of supports such as pillars. soil. causing further erosion. high extraction techniques such as pillar retreat.the size and amount of sediment that a water body can carry.
Mine Reclamation Plans Mine Closure Liability Mining Reclamation Liability Example Reclamation Permit http://ndep.nv.org/mining/environ. 1955] Abandonment Introduction Reclamation Factors Table: http://www. CHAPTER II--BUREAU OF LAND MANAGEMENT.html#FISH Regulatory Environment Federal Land Policy and Management Act . DEPARTMENT OF THE INTERIOR [PART 3710--PUBLIC LAW 167. Environmental contamination is examined as a three part cycle: source.RECLAMATION Reclamation actually begins with a good mine plan where biological. natural topography contours. chemical. environmental conditions. ACT OF JULY 23. and other environmental factors and mitigations are properly designed into mine footprint and operations. pathways and targets. and vegetation islands/buffers wherever possible will preserve ecotones (areas of great biodiversity) and faunal and floral habitat. and the success of mitigation measure and techniques implemented to prevent environmental contamination. site topography and hydrogeology. process chemicals use.pdf Reclamation Bond Plan of Operations/Operating Permit Severance Surface and Use Occupancy . Preservation of topsoil.See TITLE 43--PUBLIC LANDS: INTERIOR. Environmental scientists have figured it is much easier to convince an extant population to grow than to establish a previously extirpated (removed) population.gov/docs_04/nev0244_1005p. wildlife corridors. Environmental impacts depend upon ore geochemistry. This in turn will speed up the reclamation process since the required plant and animal communities are still present. especially combined with a strong environmental management system and best practices employed by the mining operator greatly reduce the cost of reclamation and increases odds for early habitat renewal.goldinstitute. albeit in reduced populations.
htm Colorado Hazardous Substance Research Center http://www. reclamation costs vary from between $2-10K/acre on BLM sites and up to $100K an acre for full restoration on National Park Service sites. Surface Mining Control and Reclamation Act Re-contouring Mechanical tail pulling Mechanical re-contouring to original slope. the largest land management agency in the US Government. Topsoil (or equivalent substitute replacement) Revegetation Mechanical Hydro seeding Helicopter Seeding Monitoring Canadian Permitting Application Requirements for a Permit Approving the Mine Plan and Reclamation Program Pursuant to the Mines Act Mining Restoration Support US Metal Mine Restoration Projects some good stuff here: http://ecorestoration.colostate.montana. ripping and seeding with native weed-free mixes.engr. Compensation and Liability Act Emergency Planning and Community Right to Know Act Solid Waste Disposal Act Safe Drinking Water Act Migratory Bird Treaty Act Toxic Substances Control Act Endangered Species Act Resource Conservation and Recovery Act Mining Law of 1872 River and Harbors Act National Historic Preservation Act Native American Graves Protection and Repatriation Act Federal Mine Safety and Health Act of 1977 (Mine Act) Reclamation Costs Within the Department of Interior.edu/hsrc/ .National Environmental Policy Act Clean Air Act Clean Water Act Comprehensive Environmental Response. backfilling sumps.edu/mineland/histories/metal/default.
hiking. ADMINISTRATION and INVESTOR RELATIONS Corporate Governance In Canada. hunting. NYSE etc. FUTURE SITE USE Parks and Recreation (wildlife preserves. SAFETY IX. and Sarbanes-Oxley Act of 2002 Corporate Governing Principles Composition of Board of Directors Committees Position Descriptions Director Orientation and Continuing Education Board Function and Independence Shareholder Communication Code of Ethics Whistleblower Policy BOARD OF DIRECTORS The Board of Directors sets and implements the companies mission statement. fishing. the provisions that govern corporate governance include: National Instrument 58-101 (NI58-101) “Disclosure of Corporate Governance Practices)” National Policy (NP 58-201) “Corporate Governance Guidelines” “Canadian Securities Administrator implement guidelines on best corporate government practice. the provisions that govern corporate governance include: Listing standards of the bourse (AMEX. MANAGEMENT.” In the US. golf) Ranching Farming Development X. biking. though this requirement is apparently not mandatory.). Typical Board committees include: Compensation Environmental Health and Safety Sustainability Nominating and Corporate Governance .VIII.
Severance Revenue Recognition 1. Uncertainty in measurement of reserves 13. Impairment of Log-lives Assets 4. contracts. Stripping 2. Foreign Exchange. forwards. Reclamation. Significant Accounting Policies 9. Remediation. Report of Independent and Registered Accountants (Financial Audit) 11. Principles of Consolidation 12. Changes in internal control 8. Third Party Transactions 5. Risk Interest Rate. Commodity Pricing Market Risk: Underlying price of commodity and inputs Financial Instruments: Hedges. Depreciation and Depletion 3.Financial Audit The board typically undergoes a periodical assessment that may include: • Chief Officer and board member Indebtedness • Setting number and electing Directors • Conflict of Interest • Material Interest of Board Members in Corporate Transactions • Previous oversight of concerns that ceased operation FINANCIAL REPORTING Financial Statements Boards Responsibility for Financial Reporting Report of Independent Registered Chartered Accountant Consolidated Statement of Earnings Consolidated Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Shareholders Equity Notes to Consolidated Financial Statements Environmental Liabilities Reporting. Foreign currency transactions . and other derivatives National Risk Force Majeure and Acts of God Change in Officer and Principals 6. Due Disclosure 7. Sarbanes Oxley 10.
14. Revenue Recognition 27. Property. Convertible Debentures 22. Cash and equivalents Restricted certificates of deposit held for site closure obligations Guarantees by third party firms (typically insurance) where cash in placed in a trust as a security to the state where the mining takes place. Exploration Expenditures 20. 15. Monthly payment are often adjusted periodically to reflect underlying commodity prices. Dore. Restricted certificates of deposit held as convertible debentures Similar to the process for restricted CDs. Materials and supplies 16. Notes Payable 23. the Canada Trust Company holds the security within trusts. Stripping Costs 19. Loss per share 31. Accrued Site Closure Costs 25. The miner must meet minimal requirements specified in the bond and must pay the insurers monthly installments until the balance in the trust account equal to the penal sum on the bond entered into by the miner. This trust meets the bonding requirement of the state. Reclamation and Closure Costs 26. plant and equipment Mine assets (buildings. Share Capital Shares issues in current reporting period Shares issues in previous reporting period Warrants Options Stock based compensation 32. Foreign Country Risk 30. Income Tax 33. Commitments and Contingencies Royalties Litigation Environmental . Employee Benefit Plan 24. Property Evaluations 21. In Canada. Inventories Concentrate. Stock Incentive Plans 29. Mineral Rights 18. plant and equipment = ‘book value’) Mining properties Development costs 17. Commodity Contracts 28.
36. Indemnification obligations Change in sales Lease commitments Financial Derivatives and Instruments Material Change in laws. 37. regulations and authorities Comparative figures (re-statement of previous reporting periods) Home Inventory US Coins Reference Links Blog Finance Paper Metals Mining .34. 35.
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