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By Carl L. Renzoni

INTRODUCTION This paper defines equity as the issuance of a permanent interest in the business on a broadly distributed basis. As such, it excludes the issuance of equity to either a merchant bank or to another corporation. Nearly twenty years ago the equity markets were very simple: The instruments used were primarily common shares, convertible debentures or convertible preferred shares. Another equity-type option often used, especially by junior companies, was the sale of joint venture interests. Issue sizes were generally in the order of $25 - $100 million and issues were syndicated primarily in North America and Europe by one or two investment dealers. Mining corporations today benefit from a market with much more depth. Issues are syndicated by dealers on a truly international basis, and issue sizes now often range up to $300 million. Moreover, dealers are now willing to take significant risk in buying the issues for redistribution. This discussion of trends in equity markets will encompass: 1) common shares 2) warrants to buy common shares 3) convertible debentures 4) commodity backed instruments A review follows of events that affect the mining industry and investment dealers as they have a bearing on the equity markets for the metal producers. FACTORS AFFECTING THE MINING INDUSTRY The current business cycle, up to October 1987, had been characterised by a buoyant stock market and depressed base metal prices. Mining companies entered this period with weak balance sheets and little prospect of cash flows meeting capital needs. The issuance of equity and the sale of assets were used extensively to reduce debt to manageable levels. During this period, the relative high price for gold, and more important, the very high earnings and cash flow multiples afforded to gold producers, caused companies to target gold as the only game in town. The need for capital to acquire and develop gold properties prompted an unprecedented volume of equity issues. (Burns Fry led or co-managed over $1 billion of mining equity issues per year during this period). This high demand for equity capital by the industry prompted an increase in the use of equity instruments, such as commodity backed instruments. In addition, government tax incentive programs in Canada, such as flow-through shares, allowed smaller companies to raise significantly more equity than would otherwise have been possible. Over $1 billion in flow-through equity was raised in 1987 alone. The abundance of flow-through capital in Canada made it easy to form a new company. One flow-through share fund developed a system of providing the working capital required for a company to be eligible to receive flow-through share capital so that an entrepreneur required only a mining property to get started. Many new companies were formed and several flourished in a buoyant stock market environment to the point that market capitalizations grew to $100 million or more. The current period is in stark contrast to that before October 1987. The equity markets are generally available to the resource industry only on a window basis and only for senior companies and for special situations. The industry is benefitting from buoyant metal prices, and bankers are anxious to provide debt capital. Investment dealers previously processing several equity issues

Jan 1, 1990

By James R. Arnold, John G. Mansanti

BACKGROUND Gold Fields Mining Corporation started their Chimney Creek operation in late 1987. The dump leaching operations commenced in October and the mill startup took place during the last half of November. The milling process at Chimney Creek is almost a conventional CIP plant with the major exception being the installation of a second thickener as a washing stage prior to CIP12 ' A simplified flow sheet is shown in FIGURE 1. Most of the gold in the mill is liberated by grinding in cyanide. After grinding in a conventional SAGball sill circuit, the cyclone overflow reports to the thickeners. The thickener overflow from the first thickener is pumped through 5 stages of carbon columns for gold adsorption. Slurry from the thickener underflow is leached, washed, re-thickened and pumped to CIP. After approximately 6 hours of retention time in CIP, the slurry is pumped to tailings for final deposition. The carbon from CIP is transferred to the third stage of carbon adsorption and then advanced as normal through the columns and strip circuit. Loaded carbon is stripped at approximately 1500C (3000 F) and 55 kPa (80 psi). After 4-5 hours of stripping, the grade of four tons of carbon is reduced from 5,140-6,860 g/t (150¬200 oz/ton) to typically 17 g/t (0.5 oz/ton). Zinc precipitation is used to recover the gold from the pregnant solution. After a water wash, the stripped carbon is transferred to acid wash or to the kiln feed tank for reactivation. All strip lots are acid washed in 3.0% HC1 and all stripped carbon passes through the kiln for thermal reactivation. Then the carbon is quenched, sized and stored in tanks or bins for transferral to CIP or to the carbon columns. Loaded carbon from the dump leach circuit is treated in a circuit consisting of five carbon columns which are parallel to the mill circuit. No distinction is made between the mill or dump leach carbon once the gold has been stripped from them. CARBON FINES HANDLING Once the carbon has been transferred from the carbon columns, every effort is made to minimize carbon attrition and to recover the carbon fines that have been generated in the process. Wemco Hidrostall pumps are used for transferring all carbon in

Jan 1, 1990

Blast Engineers frequently use the terminology "the blast showed good heave", or even "the heave was better this time". It is reasonably obvious that "good" and "better" are not the best terms to use. It is also noted that any variation in the data can be misleading. The author proposes a more precisely defined and objective set of measures as tried and tested in a project in 1988. Simple objective measurements of a muck pile profile can measure 1. distance thrown 2. spread of material 3. heaping of material 4. skewness, or bias in the heaping 5. rotation of the mass This technique enables one to compare the profiles from different blasts without relying on subjective experience or judgement. Simple, artificial profiles will be presented to illustrate the problems of description; and then application of the measurement techniques to these profies will be discussed with physical interpretations. The mathematical techniques will be presented, and results of the application of the techniques to real data collected during research carried out at Baimsdale in Victoria, will be presented as illustration. The use of these techniques in mathematical modelling will be discussed.

Jan 1, 1990

By W. J. Miles

Many years ago, a relationship was established between dust inhalation and pneumoconiosis. Since then, various government agencies have regulated crystalline and amorphous forms of silica material in the workplace. In 1987, the International Agency for Research on Cancer (IARC) classified crystalline silica as a probable carcinogen. With this listing, crystalline silica became a regulated substance under the Hazard Communication Standard. The minerals and chemicals industries have responded in various ways. They have: • developed worker and user training programs and literature; • labeled products with appropriate warnings; • continued to implement dust reduction programs; and • developed meaningful epidemiological studies of workers. • begun development of reliable analytical methods for measuring crystalline silica at the 0.1 % threshold level; Background Silicosis historically has been the major health hazard resulting from exposure to crystalline silica. Silicosis is the scarring of the lung from excessive exposure to crystalline silica. It has been recognized as an occupational disease for more than 2000 years, since early Greek physicians noted the respiratory problems of miners, stonecutters, and quarrymen who were exposed to excessive quantities of mineral dust. During the industrial revolution, the incidence of the disease was greatly increased by the use of machinery that increased dust levels. Subsequently, the need for dust control was recognized and measures were instituted. Silicosis is characterized by progressive breathlessness on exertion and develops over the course of years. Xray images of the lungs show

Jan 1, 1990

By David Conover

Technological advancements in electronic sensors and mine-wide monitoring systems have improved remote monitoring and analysis of underground mining information. The effective use of . these systems for ground control applications, however, remains a challenge facing the mining industry. The U.S. Department of Interior, Bureau of Mines is conducting research, utilizing real-time acquisition of rock mechanics data, to provide mine operators the means to rapidly identify and manage potentially hazardous ground conditions. The Bureau has installed a remote monitoring network in a Colorado coal mine to record Pressures from instruments installed in the roof and pi1lars of gateroads and from transducers on shield-legs along the face. The field data are being monitored at the Denver Research Center, 150 mi from the mine. A computer at the Center analyzes the field data and generates graphic displays, which permit detailed examination of mine-wide ground conditions in real-time. For the first time, Bureau researchers are able to perform real-time monitoring and analysis of rock mechanics data while mining is in progress. The data collection and display capabilities of the system were effectively used to identify and evaluate face stability problems at the mine.

Jan 1, 1990

Numerical simulation by a finite element computer code has bee* used to identify key stages in the initiation of confined bulk explosive by cast primers. The simulations have been verified by comparison with experimental field measurements of shock arrival time versus distance above the primer for a relatively sensitive emulsion doped with ammonium nitrate prills. Further simulations were performed examining the effect of primer size in a relatively insensitive blend of ANFO and emulsion. Immediately above the primers, changes in shock velocity in the explosive were caused by the interactions between shocks originating from different surfaces of the cylindrical primers. At a distance up the explosive column corresponding to about one to two borehole diameters, the arrival of shock reflections off the borehole walls caused a sudden acceleration up to the confined steady state detonation velocity. The simulations reproduced experimental observations that primer size has only a weak effect on changes of shock velocity with distance for confined explosives. However, it was predicted that primer size has a strong influence on the intensity and duration of the pressure pulses that bulk explosive send into the rock surrounding the primer region.

Jan 1, 1990

The Rosebery Mine on the west coast of Tasmania is a world class polymetallic base metal deposit, containing six major minerals: galena, sphalerite, chalcopyrite, gold, silver and pyrite. This resource has been exploited for nearly a century, yet a reliable estimate of the reserve continues to present a challenge.Over the past twenty years, the operation has changed from relatively low productivity cut and fill timber-support scraper mining, to higher productivity bulk mechanised open stoping. At the same time, economic constraints have changed and grades have fallen, which have increased the pressure to refine the resource/reserve estimating processes. This paper compares the restrictions of the polygonal section method of the past with the advantages of a kriged block model. The limitations of Mine Call Factors, the problems involved in converting decades of diamond drilling data on paper into a computer data base, and the effect of this new methodology at Rosebery, are described.

Jan 1, 1990

By K. C. Armstrong, A. B. Cron, L. A. Melis

"The Johnny Mountain gold mine in northern British Columbia, owned by skyline Gold Corporation, has been in operation since August 1988. Mill operating difficulties at the start of the operation resulted in a depleted cash flow situation and quick improvements were required to generate a self-sustaining financial basis of operation. In October 1988, Melis Engineering Ltd. was contracted to identify metallurgical difficulties, implement necessary modifications, and undertake mill operations and personnel training in order to achieve production targets.This paper presents the operating difficulties which existed at start-up and describes the methodology used to overcome production problems. Metallurgical testing results are described along with the modifications made to the milling circuit to suit ore metallurgy. Plant changes led to the operation of a simple gravity/flotation circuit to recover gold as bullion and in a copper concentrate. Operation of the originally installed cyanidation circuit was discontinued. This contributed to substantial savings in operating costs and virtually eliminated environmental problems. PROPERRTY LOCATION ANR DESCRIPTIONThe Johnny Mountain mine site is located in northern British Columbia along the Iskuit River about 60 km east of Wrangell, Alaska and 275 km north of Terrace, B. C.. A location map is presented in Figure 1 and a site plan is shown in Figure 2. The complex is located on a mountain plateau about 3, 600 feet above sea level. The plateau is flanked to the north by Johnny Mountain and surrounded on the other sides by steep cliffs."

Jan 1, 1990

Background information, formulae and a systematic set of procedures for estimating capital and operating costs for open pit mining equipment are presented in this paper. Firstly, equipment capital costs are required. These can be obtained from either suppliers, contractors or from first principles. The equipment is then divided into cost elements. Typically these are fuel and power requirements, spare parts consumption, wear items such as tyres, teeth and drill bits and finally repair and operating labour requirements. By consideration of the cost and life of each element a base cost can be derived. The base cost is then adjusted to suit specific site conditions such as the proximity to spare parts suppliers, the duty or ground conditions and the management and operator skills specific to the site. Hence, the same item of equipment can be costed to reflect different operations. Included are tables and data for typical plant items. Several examples are also given to illustrate the methodology being presented. The intention is to provide a set of procedures to allow costs to be built up from base level in a systematic and repeatable way. Applications for these costs include feasibility studies, budgetting and data for economic analyses.

Jan 1, 1990

By D. C. Rotherham

The Kidston gold discoveries were originally made about 1907, and by 1934, 1.76 Mg (62,000 oz) of gold had been produced from placer and lode mining of higher grade, most¬ly oxidized gold ore. As mining in the lode ore penetrated deeper, costs increased and the world gold price stagnated. The lode or underground production averaged close to 6.9 g/t (0.2 oz per ton) Au for the 201 kt mined. No mining or development took place from 1934 until 1965. Kidston's high grade ores were exhausted by 1934. From 1965 to 1976, exploration had developed 3 Mt of about 3 g/t (0.88 oz per ton) Au. Placer Pacific acquired rights to the property in 1976 and began a geologic and engineering study of the district. It was clear that the deposit had the potential for becom¬ing a large-tonnage, low-grade producer. However, explora¬tion had to discover the tonnage and grade and engineering needed to solve the obstacles of production costs. Bulk material handling problems were addressed by Placer's wide experience in open pit mining, and the increase in work index accompanying deeper ores was handled by Placer's metallurgists. The matter of power for the operation was solved by engineering studies. These showed that power could be generated and brought in economically. The price of gold also increased after 1976, and this helped in the economic analysis. The Kidston discovery since 1976 is really a combination of good exploration geology and careful engineering plan¬ning that overcame the obstacles presented by ore characteris¬tics and the location of the deposit. The attached paper by Harry Mustard is an extract of his honors thesis and explains the deposit geology.

Jan 1, 1990

The eastern third of Australia contains an unrivalled Phanerozoic rock record generated by the regional interaction of Gondwanaland with the Pacific and by the global effect of the 400 m.y. Pangaea - Panthalassa cycle. Between the latest Proterozoic (600 Ma) breakup of Proto-Pangaea and the mid-Carboniferous coalescence of the dispersed continents in Pangaea, the Lachlan and Thomson Foldbelts accreted to the craton by Mariana-type (backarc basin) and Chilean-type (continental margin) subduction from eastward jumps of the Palaeo- Pacific rim. Further jumps of the rim of the Permian and Mesozoic Pacific, now expanded to Panthalassa, accreted the New England Foldbelt to the craton. An Early Permian rift basin was succeeded by a Late Permian to mid-Triassic foreland basin which extended between the craton and the foldbelt behind the 10000 km Panthalassan rim, from the Bowen Basin of Queensland to South America, and was host to the productive coal measures of eastern Australia, as the succeeding Jurassic and Early Cretaceous foreland and epicratonic basins included the coal measures, hydrocarbon reservoirs, and aquifers of the Great Artesian Basin. The magmatic arc on the Australian margin ended after the mid-Cretaceous uplift along the Queensland coast that initiated southwestward drainage from the high Pacific rim. The Chilean-type subduction that had prevailed since the Devonian was superseded shortly afterwards by Mariana-type subduction with the successive generation of the back-arc basins of the Tasman Sea, Coral Sea, and other southwest Pacific basins by the migration of the island arc to its present position 2500 km eastward of Australia.

Jan 1, 1990

By L. Alan Weakly

The U.S. Department of Energy (DOE) has entered into a $l.5 million Cooperative Agreement with Alpine Equipment Corporation/Astro International Corporation ("Alpine") of State College, Pennsylvania, for the evaluation of water-jet-assisted (WJA) mechanical cutting of oil shale under actual mining conditions. A commercial-sized, heavy WJA mechanical miner is being assembled based upon the successful "factory testing" of a smaller prototype miner utilizing standard tungsten-carbide and Polycrystalline Diamond Composite (POC) bits in large oil shale boulders. Actual field testing of the machine will be conducted in an oil shale mine located in the Piceance Basin of Western Colorado. In-mine logistical support is being provided by several oil shale companies through the Colorado Mining Association (CMA) and the U.S. Bureau of Mines (USBM).

Jan 1, 1990

By C. H. B. Leitch

"The Bralorne-Pioneer deposit produced more gold than any other deposit in British Columbia over its 70 years of operation (130 kg or 4 million oz of Au, from 7 million tonnes of 18 glt ore). Mineralization is related to a suite of late Cretaceous albitite dykes of 85 to 90 Ma age. It thus occurred long after and is genetically unrelated to the Early Permian (275 Ma) Bralorne diorite and soda granite.The major veins strike about 110 degrees and dip north at 70 degrees, with slickensides plunging 45 degrees east that indicate last movement was reverse. Major ore shoots in the veins occupy somewhat less than 20% of the vein and plunge steeply west, roughly perpendicular to the slickensides. The structures that contain the veins probably formed at around 95 to 90 Ma during a strike-slip episode with easterly directed maximum compression.Disseminated pyrite, pyrrhotite, and minor chalcopyrite occur within envelopes up to several metres from the veins. Arsenopyrite is confined to vein selvages. Local sphalerite and galena appear to correlate with gold-rich portions of the veins. Traces of tetrahedrite and stibnite have been observed but tellurides have not. Gold is found principally as thin smeared flakes of the native metal in the black sulphidic septae of the strongly ribboned veins. Hydrothermal alteration envelopes around the veins grade outwards from intensely foliated quartz - ankerite - sercite (±fuchsite) to less sheared calcite - chlorite - albite to unsheared epidote -calcite.Open-space vein filling textures found in the deep (mesothermal) environment at Bralorne can be explained by a fault- valve model. High-angle reverse faults may have acted as fluid-pressure activated valves on geopressured reservoirs, causing large cyclic fluctuations in fluid pressure that promoted mineral deposition in an episodic fashion . The faults that were mineralized were reactivated sub-vertical former strike slip faults, oriented at a high angle to the northeast-directed stress in a compressive regime."

Jan 1, 1990

Mr G H Park was born and brought up in Zimbabwe, in mining from the University of the Witwatersrand. Starting as a Learner Official at Rand Mines, he went Mr D J van Niekerk was educated at Helpmekaar Boys' High School in Johannesburg and the University of Pretoria. Mr C J C Janse van Vuuren was educated at Klerksdorp High School, Pretoria Technical Colege, the University of Pretoria, and Unisa. He holds the folowing degrees: BSc (I&S), BSc Hons (Met Pta), ND (Met Tech), AEP (Unisa). Prof. R F Sandenbergh was educated at the Afrikaanse Hoerskool Germiston and the University of Pretoria. He holds the degrees of B Ing (Chem), M Ing (Chem), and D Ing (Metal). President's Award Professor Jannie van Deventer, Head of the Department of Metalurgical Engineering at the University of Stelenbosch, has been honoured with one of the five President's Awards for 1990. These awards are made by the CSIR's Foundation for Research Development. G R Bozzoli Awards* Prof. Alan Kemp, Dean of the Faculty of Engineering at the University of the Witwatersrand, has appealed to industry not to cut bursary funding during recessionary times.

Jan 1, 1990

Pictured on these pages are the eight RMCMI Scholarship Award Winners for the 1989-1990 year followed by a brief profile. All winners, except Emmet Roache from New Mexico, were present as guests of the Institute at the June convention in Steamboat Springs, Colorado to receive recognition at the Welcome Session Monday, June 25, 1990. Each state vice president served as the host for the collegiate winner. In addition to receiving a plaque from the Scholarship Chairman, Dr. Donald Gentry, each winner receives $750 tuition credit for the coming academic year. As this is a continuing award, the winners from the previous year will receive another $750 for tuition credit in their senior year if they have maintained good academic standing and are recommended by their university. Criteria for these awards to be made in the spring annually is (1) That the award be made to a sophomore student and used as tuition during the junior year. (2) That the recipient be both a U.S. citizen and a resident of the state involved. (3) That the recipient have good academic standing, be pursuing a degree in a mining related field and have an expressed interest in Western coal as a possible career path. The scholarship program includes curricula other than those in the mining departments, but in the engineering disciplines, such as geology, mineral processing and metallurgy. Contributions to this worthy project are tax deductible to each individual RMCMI member or his firm. Through annual donations of $100 or more, the Patrons of the Institute fund the scholarship program, and the various vice presidents contribute the travel expenses to conventions for these outstanding young collegiates. Donations to this worthwhile program may be made payable to RMCMI Scholarship and mailed to the RMCMI Office, 3000 Youngfield Street, Suite 324, Lakewood, CO 80215. Profiles of the 1990 Scholarship Winners follow. [ ] Mildred Benally University of Arizona Tuscan, Arizona Mildred has attended San Juan College in New Mexico, and will graduate from the University of Arizona in May, 1991. Upon completion of her, schooling she hopes to pursue a career in the coal mining industry. In preparation for her goal, her work experience includes being a lab technician, a mining engineer intern, and a lab technician assistant; she also is very skilled in various computer applications. She has been a member of SME-AIME, and secretary to the U of A Student Chapter, and recipient of the SME Coal Division Scholarship and past recipient of the Navajo Tribal Scholarship. [ ] Joshua Olmsted Colorado School of Mines Golden, Colorado Josh is a sophomore majoring in mining engineering at the Colorado School of Mines. He is an outstanding student as well as an accomplished athlete. Josh was on the Academic Honor Roll 1988-1989 and has been awarded an athletic scholarship. He plays varsity soccer and intramural basketball.

Jan 1, 1990

In this paper, the authors attempt to apply a simplified non-homogeneous void diffusion model (NHVDM) to predict surface subsidence for longwall mining in Illinois. A generalized error function subsidence profile is derived from this model. The model validation indicates that the NHVDM approach appears to fit the observed subsidence data as well or better than the error and the trigonometric functions, particularly around the trough edge areas.

Jan 1, 1990

Many mining operations are uncertain of what costs they should be achieving. The majority of cost estimates are based on historical costs that have added contingency factors. Historical costs are a valuable source of information but a more precise costing method is necessary. There are several alternative methods for predicting costs. A methodology which provides the best indication of the achievable costs is one using a standard inventory list and a bill of quantities. The model is termed a Basic Principles model and addresses basic design principles and engineering constraints.

Jan 1, 1990

By William J. Neely

Augercast piles are formed by drilling a continuous-flight auger into the ground and, on reaching the required depth, sand-cement grout or concrete is pumped down the hollow stem as the auger is withdrawn. The sides of the hole are supported at all times by the soil-filled auger, eliminating the need for temporary casing or bentonite slurry. The augercast piling method is fast and economical; there is no vibration, very little noise and, if executed properly, no ground displacements during installation. The method is well suited to sands which are easy to drill and are readily transported up the auger. Relatively little attention has been given to augercast piles in the literature which might be part of the reason for the considerable variations in local practice, building code requirements and design methods. The purpose of this paper is to discuss some of the features of augercast pile installation that are known to influence both the structural and geotechnical capacity of the pile, to evaluate several empirical design methods and to look at some important aspects of quality control of augercast pile installation.

Jan 1, 1990

By Stephen P. Signer

A field test was conducted by the U.S. Bureau of Mines at the Cyprus Plateau Starpoint No. 2 Mine. near Price. UT. to study the support rock interaction mechanics. Twelve instrumented. fully grouted roof holts and eight sagmeters were installed in the roadway of a two-entry gate road to measure load changes and roof movements. Readings were taken during section development and as each longwall panel passed the test area. Loads that resulted from development of the en- tries were higher than would be expected if simple suspension of the roof rock was the sole cause of loading. When the first longwall face passed the test section massive beam behavior was exhibited over the entry and adjacent pillar. However, no significant localized bending was detected at any of the strain gauge locations. After the first panel passed the test section. all the roof bolts had at least one zone where the steel had yielded. Loading continued to increase. and when the face from the second panel was adjacent to the test section. 70 pct of the strain gauges at the 6-. 1%. and 30-in locations had passed the yield point of the steel roof bolt. However, even at these high load levels, the supporting pattern was sufficient to provide adequate reinforcement to the mine roof.

Jan 1, 1990

By Crawford G. R, Wold M. B

The application of the hydraulic fracturing technique to the measurement of in situ rock stress from underground excavation is discussed; including relevant theoretical considerations, equipmenl details, experimental technique and analysis procedures. Examples of the application of the technique at three Australian coal and metalliferous mining operations are given. The results obtained from these applications are compared with corresponding results obtained from overcoring tests conducted in close proximity at each site. Generally good correspondence in a wide variety of rock types is indicated. Experience gained with hydraulic fracturing at several underground mining sites has indicated it to be a quick, cost effective means of gaining an understanding of the in situ stress field in sufficient detail for many mine planning functions.

Jan 1, 1990