Technical Note - Borealis Project: A Fast-Track Approach to Mine Development

Introduction The intent of this paper is to present the general strategy and method of implementation to achieve a "fast-track" mine development. The major objectives of a "fast-track" or rapid development schedule are to minimize front-end development expenditures and to realize an early cash flow from operations. The Borealis project of Houston International Minerals Corp. (HIMCO) is used as the working example to illustrate the development schedule. Borealis is a 2.3 kt/d (2,500 stpd) gold-silver heap leach operation near Hawthorne, NV, Pre-Feasibility Planning Proper early planning and identification of priority items were necessary to expedite project progress. On April 1, 1978, HIMCO leased the rights to the Borealis prospect and initiated exploration activities almost immediately. Since Borealis was showing excellent potential for mine development, an effort to clear the way environmentally was initiated during the summer of 1979. With the Borealis properties located within the Toiyabe National Forest, the US Forest Service (USFS) was recognized as the "lead" or respon¬sible agency for addressing the environmental issues. Early scoping of the environmental issues by both HIMCO and the USFS allowed HIMCO to take the initiative and address two potentially critical issues-archaeological and biological. Third party consultants, agreed upon by HIMCO and the USFS, were contracted to conduct archaeological and biological surveys. Desert Research Institute of Reno, NV, provided archaeological services, and JFL & Associates of Boulder, CO, provided biological services. These efforts began in the fall of 1979 and continued through the summer of 1980. Conservative Design Criteria By adoption of conservation design criteria, flowsheets and processing data required for detail engineering were firmly established with a minimum of impact on schedule. On Oct. 21, 1980, HIMCO formally initiated a feasibility study to evaluate the Borealis project. Four organizations were contracted for particular scopes of work: • John T. Boyd Co.: Ore reserve estimation, preliminary mine plan, and mine capital and operating cost estimation. • Bechtel Civil and Minerals: Conceptual engineering, processing capital and operating cost estimation. • Hazen Research Inc.: Metallurgical testing. • Sierra Pacific Power: Cost estimation for power supply. Metallurgical testing and conceptual engineering of both heap and agitation leach flowsheets were investigated concurrently. Numerous economic evaluations were conducted for both heap and agitation leaching at varying production capacities. The results indicated a heap leaching flowsheet treating 454 kt/y (500,000 stpy) yielded the best economics and was compatible with the "fast-track" development goal. Conservative design criteria was established to provide operating flexibility and ensure plant productivities. A summary of major design criteria is presented in Table 1. HIMCO assembled the results of the studies of the various consultants along with internally generated studies to produce the feasibility document. The decision to supply 100% equity by HIMCO rather than arrange project financing help to expedite the project. Cooperation Between HIMCO and Regulatory Agencies With cooperation and mutual trust established between HIMCO and regulatory agencies, the time required for environmental permitting was streamlined as much as practical. To expedite the required construction permits, HIMCO proposed to the USFS that HIMCO fund the total cost of an Environmental Assessment Report (EAR) and that issues be addressed at the technical level of an Environmental Impact Statement (EIS). The previous studies on the critical issues of archaeology and biology provided HIMCO with the information to satisfy the proposed approach. Houston International Minerals and the USFS agreed to have Environmental Research and Technology (ERT) of Fort Collins, CO, prepare a draft EAR for the USFS.