The Cinola Project, Process and Environment

"SUMMARY A practical application of nitric acid oxidation of sulphides, based on the principles of the Arseno process, has been developed for the Cinola ore. Development of the process has been based on testwork conducted by Bacon Donaldson of Vancouver and Hazen Research of Denver, and on conceptual engineering performed by Minproc Engineers of Denver.A comprehensive Stage II report for the project has been submitted to the B.C. permitting agencies, containing provisions for a zero discharge tailings impoundment system and prevention of acid mine drainage. Approval in principle is expected in early 1989.A feasibility study recently completed by Minproc Engineers and Davy McKee Corporation demonstrates that this project can be brought to production for a capital expenditure of C$120 million for a mill throughput of 6,000 tonnes/day and operated at a total direct operating cost of less than $20/tonne.INTRODUCTION The Cinola orebody was discovered in 1970. It is situated approximately in the centre of Graham Island, the largest of the Queen Charlotte Islands. It represents the mid to upper levels of a hydrothermal precious metals system, characterized by intense brecciation and silicification. Gold is associated with finely disseminated sulphides in a breccia matrix and in free form in numerous quartz veins.Ownership of the property has changed hands a number of times, and previous attempts to bring the property to production have failed. Two critical factors have frequently been blamed for difficulty in creating a successful project: namely, process and environment factors, hence the title of this paper.City Resources (Canada) Limited (""City"") acquired the property in 1986, and commenced an aggressive campaign to verify ore reserves, to carry out metallurgical research and to address environmental issues.PROJECT OVERVIEW When the Cinola orebody was discovered, the significance of hydrothermal mineraliza¬tion associated with crustal plate boundaries was not recognized, and for several years, the orebody was considered an uneconomic curiosity. If the type and location of orebody sought by many companies engaged in gold exploration were to be specified, it would probably be a description of the Cinola orebody - it is a large (greater than 1.5 million ounce), low grade (2.45 gm/tonne), refractory ore reserve associated with the Pacific rim crustal plate boundary. The industry appears to have recognized in the past few years that its future lies in the exploitation of such orebodies, and is prepared to come to grips with the technical problems associated with such ores. In this sense, the Cinola orebody might be considered to have come of age."