SME meeting focuses on solutions to unique problems faced by small miners in mine development: Small Mines Development in Precious Metals

Two years ago, about the only US mining ventures that could turn even marginal profits were precious metals. In 1986, the price of gold dramatically increased, as did earnings from precious metals, mostly gold mines. First quarter results for 1987 show that gold will again be the most profitable type of mining in the US. All this money being made in gold resulted in many new mines being opened and hundreds of old workings being re-evaluated. The Society of Mining Engineers has put together a technical program to aid in developing precious metals mines. Small Mines Development in Precious Metals will take place Aug. 30-Sept. 2, 1987 at Bally's Hotel, Reno, NV. For registration and hotel information see page 426 or contact Meetings Department, SME, P.O. Box 625002, Littleton, CO 80162-5002, 303-973-9550. Topics at this meeting will include Problems Facing Small Miners; Understanding Geology and Ore Reserves; Mining-Production Options to Maintain Competitiveness; Processing for Precious Metals; Financing and Economics that Work for Small Miners; and Understanding the Environmental and Permit Maze. Problems facing the small miner The small miner has found and started most of the productive mines in the world, says Alfred G. Hoyl, of Coal Fuels Corp., Rollinsville, CO. Hoyl will state his case for small mines development in the opening session of the program. He will make the point that government regulations must never restrict the small mine or miner. And the mining industry must be careful not to crowd out the independent miner. "To restrict small mining is to say to our young men and women entering the mineral industry `There is no place for you as an independent.' Small is a relative term and we must never feel that starting small will restrict our possibilities of becoming big." In the same session, David J. Starbuck, Starbuck Minerals Management, Mayer, AZ will take a look at why smaller precious metals mines are profitable. Mining companies have changed their perspective on reworking previously mined properties. They are looking at abandoned properties in older mining districts. The attitude is that smaller operations in these districts can be profitable with the present economic climate, more advanced technology, and better management. Small, independent mining companies may not have the same resources to draw from as the majors. But there are affordable technologies available that fit into the independents' budget. Betty Gibbs, of Gibbs Associates, Boulder, Co will explain how a personal computer can help a small operation to analyze data more effectively and respond quickly to changing conditions. Scenarios will be developed that will describe how PCs can be incorporated into all phases of an operation. Financial institutions are becoming more willing to consider venture capital for small precious metals mines, according to Stanley Dempsey, Denver Mining Finance Co., Denver, CO. This may be in the form of equity or debt, he says, but they want to receive assurances of the quality of the resource. And they will ask about the ore reserves. Next, the potential lender will want to know about the mining method and en¬vironmental regulations. Dempsey will discuss these requirements. Once a high grade gold mineralization is located and reserves proven, it must be evaluated to determine which recovery process is best suited for this deposit. Robert Martinez, Amselco Minerals, Ely, NV will evaluate processes for such a deposit located in Mexico. Heap leaching, vat leaching, and a carbon-in-pulp circuit are all viable options, he says. He will explain which recovery process proved to be the most economic. Other papers in the introductory session include How to Best Use Consulting Firms to Accelerate the Development Process, by H. Schreiber and R.P. Fronk, both of Behre Dolbear-Riverside, New York, NY. And W. Mayrsohn of Asamera Minerals, Denver, CO will present Marketing Fundamentals that Work for Small Mines. Understanding geology and ore reserves In the current scheme of fast-track exploration and mine development, insufficient time and thought is given to understanding the geology of a deposit as it relates to controls of mineralization and subsequent mine development, say D.S. Bolin and J.W. Rozelle, of Pincock, Allen & Holt,