Operating practices at Lupin gold mine, cornerstone of Echo Bay Mines Ltd.

The Lupin mine consists of a gold mining, milling, and refining complex located 400 km (250 miles) northeast of Yellowknife and 100 km (60 miles) south of the Arctic Circle on the southwest shore of Contwoyto Lake in Canada's Northwest Territories. (Fig.1). The mine was commissioned in 1982 and is presently producing 6 t/a (193,000 oz per year) of gold from 612 kt (675,000 st) of ore. The success of this operation is due to such factors as the continuity and grade of the ore body, the competency of the host rock, low mining costs, efficient milling, the transportation of people and materials to and from the mine site, and the unique work schedule resulting in a stable workforce. Echo Bay Mines operated a silver mine at Port Radium on Great Bear Lake, Northwest Territories, from 1965 to 1982. The company first obtained an option on the Lupin property from Inco in February 1979 and completed an underground exploration program in 1979-1980. Topographic relief is low and vegetation is sparse in the continental subarctic climatic zone, consisting mainly of moss and lichens. Temperature extremes are from 24°C to - 45°C (+75°F to -49°F) with an annual mean of -12°C (+54°F). Permafrost extends from near surface to 500 m (1640 ft) in the ore zone. Its remote location and harsh climate presented some challenging design and logistical problems. Construction began at the Lupin mine site in 1980. Before construction, a 1.5-km (5000-ft) gravel landing strip was prepared, suitable for landing a C 130 Hercules. The entire Lupin project took 20 months to build. All of the men and materials were transported to the site with some 1100 Hercules flights and several hundred Convair 640 flights. The Convairs transported construction crews, which numbered 400 at their peak, and also carried 3.2 kt (3535 st) of supplies during construction. The facilities were constructed and commissioned for a total cost of C$135 million. The operation was originally designed to throughput 860 t/d (950 stpd). Expansion in 1983, circuit refinements, and some capital projects brought the daily throughput to 1.7 kt/d (1850 stpd). The underground mine delivers 612 kt/a (675,000 stpy) of ore to the mill at an average head grade of 8.46 g/t (0.3 oz per st). The ore is nonrefractory and is processed in a conventional cyanide leach using the Merrill Crowe process. Gold recovery is about 95.0%. The average production cost is $US5.85/g ($US 182 per oz) based on 1987 figures. Mining at Lupin – Geology The Lupin deposit occurs in amphibolite grade iron formation overlain by mudstones (phyllites) and underlain by graywacke (quartzites). Contacts between the wallrock units and the iron formation are well defined. It has been folded and tilted into a megascopic antiform-synform-antiform structure (Fig. 2). Gold occurs primarily within the sulfide rich iron formation, with some minor occurrences in sulfide poor iron formation. The distinction between sulfide rich and sulfide poor iron formation is based on a visual cutoff of 5% total sulfide content. Mining widths are determined by an assay cutoff of 4.2 g/t (0.15 oz per st) gold. There are few tons between 1.7 and 4.2 g/t (0.06 and 0.15 oz per st). The amphibolitic iron formation at the mine ranges from 1.5 to 20 m (5 to 65 ft) wide and has been followed over a strike length exceeding 1.7 km (5600 ft). The wider portions of the ore body tend to occur at its north extent and south nose. The gold-bearing iron formation appears on plan as a Z-shaped structure made up of three zones: the West, Center, and East. The West and Center zones dip steeply to the East (75° to 90°). Each of the ore zones plunge at an angle of about 65°. Total strike length of the three zones is more than 610 m (2000 ft). The zones are confirmed at a depth of 650 m (2130 ft) below surface. The Center zone is the widest and varies from 4.5 to 20 m (15 to 65 ft) while the West is the narrowest, averaging 1.5 m ( 5 ft). The footwall is comprised of quartzites that are strongly jointed and locally grades into phyllite, which comprises the hanging wall. The hanging wall and footwall are reversed in the West zone. Mineralogy of the ore at Lupin consists of amphibole minerals (hornblende, cummingtonite, and grunerite), feldspars, quartz, occasionally garnet, pyrrhotite, arsenopyrite, minor pyrite, and trace chalcopyrite. Also found in minor amounts are scheelite, apatite, epidote, calcite, tourmaline, and some arsenides (notable loellingite). Quartz