Search Documents

By Rodney A. Cooper

The Mary River iron ore deposits were discovered in the 1960?s. The high quality of the deposits was immediately evident, and drilling programs were successful in defining a resource adequate for supporting a feasibility study. Through a combination of ownership, market and political forces, the deposits were not developed. Having missed the window of opportunity, the project remained dormant for over three decades. Baffinland Iron Mines Corporation, with its 100% ownership of the Mary River deposits, began trading publicly in 2004. Modern exploration and metallurgical test work began in 2004 and has continued in 2005 and 2006, resulting in total expenditures during this period of almost C$60 million. In May 2006, an engineering team lead by Aker Kvaerner E&C, a division of Aker Kvaerner Canada Inc., completed a scoping study based on the first of five identified deposits. Highlights of that study include direct shipping of high quality lump ore to Europe over a 34 year mine life at a production rate of 10 million tonnes per annum, based on an indicated resource of 309 million tonnes at 66.1% Fe and an inferred resource of 28 million tonnes at 65.9% Fe. Capital costs were estimated at C$1.5 billion. Using iron ore prices approximately 36% below that of the 2006 market, a pre-tax internal rate of return of 15% was estimated assuming equity financing. Payback on initial capital was 5.9 years. The pre-tax life-of-mine cash flow was estimated to be C$6.3 billion. As a result of this study, Baffinland initiated a Definitive Feasibility Study, under the management of Aker Kvaerner, which is scheduled for completion in December 2007. This paper touches on the geology of the deposits, the current resource and the outlook for expansion. Project permitting, construction planning, logistical challenges and ocean shipping considerations are discussed, providing a current perspective on the project scale, scope and timeline for commercial production. In addition, an overview of the Company?s bulk sampling program will be provided.

May 1, 2007

By Stephen Hardcastle

Supplying ventilation in underground metal mines can be one of the most energy demanding services required to support production activities. Consequently, as energy, in the form of electricity or combustible fuels can be expensive and their unit cost is expected to increase, there is significant interest in reducing the overall demands of a mine?s ventilation system through such initiatives as controlling ventilation based upon demand and exploring other power alternatives to the current usage of the diesel engine in mobile mine vehicles. However, determining the benefit of any energy saving technology is complex and not universal applicable across the industry, consequently they have not been widely adopted. For these technologies to succeed they must be strategically applied based upon sound business cases. The intent of this paper is to provide information on some of the prospective control strategies and their potential impact on the power consumption related to supplying ventilation.

May 1, 2007

By Penny C. Stewart

Narrow vein underground stope design engineers in Australia have expressed significant interest in the requirements and methodology for developing site-specific stability charts. This is largely due to a concern that existing stope stability charts inadequately take into account factors influencing narrow vein stope stability, such as the effect of backfill abutments and the effect of in stope pillars. This paper presents conclusions from a comprehensive statistical examination of case history requirements for a site specific stability chart and critiques literature arguments for site-specific charts. A new statistical analysis technique and a large comprehensive stability database enabled the authors to quantify case history requirements and any site-specific effects the model exhibits. The analyses indicated that a reliable stable-failure boundary requires at least 150 case histories, of which a minimum of 10 percent should be unstable stope surfaces. Marginal site-specific effects were observed for the operating conditions captured within the database. The authors conclude that the apparent site-specific effects noted in previous literature are attributable to operating conditions inadequately represented in the database. Such operating conditions could induce erroneous stability predictions at any site, and are therefore not truly site-specific. Following from these conclusions, a strategy for taking into account operating conditions particularly relevant to narrow vein mining has been proposed. In particular, the development of a chart that accounts for the effect of backfill abutments on stope stability. Backfill abutment effects are particularly relevant to mechanised narrow vein mining methods such as modified Avoca. Collaboration from at least five sites is required to obtain access to relevant data and underground drives for geotechnical mapping. Preliminary estimations indicate that approximately three months fieldwork is required to meet case history requirements. CMS data in conjunction with 3-dimensional design software will be used to calculate equivalent linear overbreak/slough (ELOS). In contrast to stable, failure, major failure and caving categorical variables, ELOS is an objective and continuous stability variable and is therefore, more conducive to mathematical modelling.

Oct 1, 2001

By Roger Lacroix

L?arrivée de nouvelles technologies sur le marché des foreuses portables combinée au besoin des mines à mieux consommer l?énergie électrique ont permis d?identifier le potentiel de deux nouveaux type de foreuses présentement utilisées en Afrique du Sud, à savoir les foreuses électriques et les foreuses hydrauliques actionnées à l?eau. Grâce à la collaboration de mines Niobec et Géant Dormant de Cambior Inc., ainsi que d?Hydro-Québec, le potentiel réel d?économie énergétique des foreuses portables hydrauliques et électriques par rapport aux foreuses conventionnelles à air comprimé a été évalué pour des roches dures et moles. Ainsi, cet article a pour objectif d faire ressortir ces potentiels d?économie énergétiques. En outre, les résultats pour une mine mécanisée et une autre mine de type filonien, dans lesquelles on retrouve des conditions de terrain différentes, seront présentés. Les résultats montrent un potentiel d?économie énergétique d?environ 70% pour la foreuse électrique et d?environ 50% pour la foreuse actionnée à l?eau. Ces résultats montrent qu?il est possible d?obtenir une meilleure efficacité énergétique par mètre foré. Ainsi, il apparaît maintenant intéressant de poursuivre les travaux de développement des deux technologies pour les applications de forage vertical et de tensionnement des boulons, et de viser à accroitre le taux de pénétration de la foreuse électrique pour le rendre équivalent à celui de la foreuse à air comprimé.

May 1, 2007

By Michael P. Davies

Mine waste facilities, and in particular tailings impoundments, are one of the highest risk aspects of any mining venture. There are far too many recent examples of how real and/or perceived physical or environmental impact from one of these facilities has had enormous economic impact on both the specific project and the overall parent mining company. In many cases, such dramatic impacts have followed a period where a due diligence of the mine had been carried out (e.g. in an acquisition, merger or similar) or an internal or otherwise audit had taken place. Consequently, it is suggested that there is a need for an audit/due diligence framework to assist those processes in terms of assessing mine waste facilities. This paper presents a recommended framework for completing either an audit or due diligence assessment of mine waste facilities under a number of typical scenarios. The framework will be of relevance to reviews carried out prior to mine construction, during operations and for mines that have been in a care and maintenance position and are to be re-opened. Concepts of risk management are introduced as an essential part of the recommended framework. The paper should be of value to current and prospective mine owners involved in stewarding an area of significant risk to viability of their mining venture. The paper should also interest prospective lenders to these ventures.

May 1, 2007