Bulk Minable Gold Deposits Help Fulfill Increased Demand For Gold

Introduction Increasing investor and industrial demand for gold is not being matched by new mine output from traditional sources. This forces the exploitation of alternative natural and industrial resources to supplement traditional sources. A traditional natural resource is either high- to medium-grade ore, of gold or silver with coproduct gold. Or, they are medium- to low-grade base metal ores having byproduct gold. Traditional ores are also frequently extracted at relatively great expense by selective underground mining. Alternative natural resources include low-grade, near surface ores and the products of mining-dumps - and of onsite processing - tailings. Traditional industrial resources are newly mined gold or that obtained from plant sweepings. Their alternative analogues include gold in old scrap and chemical sludges and precipitates, notably those incidental to the electronic industry. These alternative gold resources have several attractions. They are untapped and abundantly available. Having been overlooked by prior metals suppliers, title to many alternative resources is easily acquired. Or, the value of such a resource may go unnoticed until its gold is rendered exploitable by an advance in extractive technology or an other approach. This article addresses the effect of large tonnage, low-grade lode ores on gold supply. Exploiting these ores is rendered commercial by their amenability to bulk mining by modern large-scale mining and metallurgical operations requiring little selectivity. Placer gravels, perhaps the earliest type of gold ore mined, also are bulk minable. But these fall outside the definition of being lode deposits. Most lode bulk mining is from surface open-pit mines. Some, however, is from underground by such large-scale mining techniques as room and pillar, vertical crater retreat, and end slicing. The low-grade gold ore being discussed averages 2.8 g/t (0.082 oz per st). Output How greatly do bulk minable, low-grade resources effect supply? 1982 was a somewhat healthy year for gold mining and exploration in North America in spite of the general depression in the mining industry (Table 1). The wildly fluctuating price of gold bullion had stabilized at an annual aver¬age of $12.08/g ($376 per oz) - (Handy and Harmon base price). Half of the 1.3 kt (43 million oz) of 1982 world gold mined were from South Africa's high-cost, medium-grade, selective underground mines. Of the remaining half, 20%, or about 130 t (4.2 million oz), was mined in North America. This includes Canada and the US - the third and fifth largest gold producers in the world. Of that North American production, more than 62.2 t (2 million oz) of gold, or about 50%, came from bulk mining of gold ores with or without co-product silver. Most of this was in the US, where bulk minable gold-silver lode ore produced nearly 31 t (1 million oz). This amounted to 60% of the nearly 46.6 t (1.5 million oz) produced in the US during 1982. An additional nearly 7.7 t (250,000 oz) of gold were produced as the byproduct of bulk mining of cop¬per ore, for a total of 34 t (1.1 million oz) of gold, or 75% of US gold production by bulk mining. To further illustrate this, US placer, mine dump, and related operations produced an insignificant 4% of US gold output at the time. Exploitation of bulk minable gold deposits is becoming increasingly important worldwide. Most new Australian gold mining announcements are of bulk minable developments. This trend will increase in North American mining as more large tonnage, low-grade operations come onstream in Canada, where much current production is from underground. It will increase with the general climb in Mexican gold mining. And it will grow with expansion of the 12 t/a (400,000 oz per year), gold production of the Dominican Republic. Production Metal price and operating costs make these large tonnage, low-