Search Documents

By Edward R. Mueller

As an alternative to a million dollar, sensor based, computer dispatching system, Cyprus Pima Mining Company has installed a home¬made analog computer. The device is used in conjunction with a standard radio-dispatching system; it is inexpensive and very simple to build and operate. It enables the dispatcher to make near opti¬mum dispatching decisions and to identify all off schedule haulage trucks. Since installation, Cyprus Pima has experienced significant increases in pit productivity.

Jan 1, 1977

By John A. Folinsbee

Placer Dome Canada owns and operates the Campbell mine and mill at Balmertown, in the north western corner of Ontario. The mine operates at 1.3 kt/d (1,500 stpd). It produced more than 9.3 t/a (300,000 oz/year) of gold during the last three years. Changes to the gravity concentration circuit have resulted in a 10% to 15% increase in gravity recovery. The mill head grade at the Campbell Mill is relatively high, averaging 18.5 g/t (0.54 oz/st) over the total reserve tonnage. During the past several years, the head grade was averaging close to 20 g/t (0.6 oz/st). Before 1994, gravity concentration was achieved by using a combination of conventional mineral jigs and tables. Jig concentrates were upgraded on shaking tables to produce a concentrate, which was refined to bullion. In May 1994, management decided to buy two Knelson CD 760-mm (30-in.) concentrators. The objective was to replace the existing jigs and increase gravity gold recovery by up to 15%. Gravity recovery with jigs averaged between 30% to 35%. Gravity recovery was anticipated to increase to about 50% with the Knelsons.

Jan 1, 1997

By D. Wheeler

Similar to modern day petro-chemical processes, the flotation column is a complete break from the conventional manner of floating on a batch basis in cells. The column has a reputation of being only suited for cleaning applications, particularly that of molybdenum cleaning. The original column, invented and developed by Column Flotation Co. of Canada, Ltd., was developed as a Rougher-Scavenger. Only after proving its capability in this field was cleaning allowed. One rougher-scavenger column in closed circuit with a cleaner column produced better grade and recovery than a conventional cell plant consisting of one stage of roughing, two scavenging and four stages of cell cleaning. Three cleaner columns replaced 13 stages of conventional cell cleaning and resulted in higher grades and recoveries. The gentle countercurrent action of the column itself together with complete automatic control enable this machine to produce such results.

Jan 1, 1986

By M.P. ROY, ASHISH K. VISHWAKARMA, A.K. MISHRA, P.K. SINGH, VIVEK K. HIMANSHU

Principal component analysis (PCA) is one of the dimension reduction techniques widely used to classify data based on features. Ground vibration is a major hazard arising from rock blasting operations, and accurate prediction of the vibration is necessary for designing controlled blasting parameters. Most of the widely accepted predictors of ground vibration consider the maximum explosive charge weight per delay (MCPD) and distance as the parameters responsible for ground vibration, but mining sites with bigger production targets have varying geometrical parameters to suit the excavator utility. Accordingly, other blast design parameters will also have impacts on ground-vibration intensity. A blast vibration predictor considering all the blast design parameters would be complicated, and some of the parameters will have overlapping contributions to ground-vibration intensity. Data classification using PCA is a feasible solution, and regression analysis may be performed to develop predictors using the classified input data. In this study, PCA was used along with multivariate logarithmic regression to predict ground vibration, and the performance of this technique to predict ground vibration was compared with the performances of various existing empirical predictors. The evaluation suggests that the predictor with logarithmic regression followed by PCA performs better than the existing empirical predictors.

Nov 1, 2022

By RIINA SALMIMIES, ANTTI HAKKINEN, PAULA VEHMAANPERA

Better understanding of the mechanisms and kinetics of dissolution can benefit several industrial processes. For example, iron can be leached from clays, which can be further used as a raw material in the ceramic industry. Another important application is the regeneration of ceramic filter media, which are used in the dewatering of iron ores. Dissolution of iron oxides in mixtures of acids is fairly uncommon and a less well-understood phenomenon, but it can result in a more efficient process. This work also shows that the determination of dissolution mechanisms and kinetics is not straightforward in different acid systems.

By J. W. Powell

Several years prior to 1962, it became obvious that in order to develop ore reserves below the Storke Level, it would be necessary to devise a method to facilitate the ore being lifted three hundred feet to the surface or six hundred feet to the mill. The final plans called for an underground crusher complex with two stages of crushing and a conveyor belt gallery for transport of the ore six hundred feet above, to the third crushing stage. Access into the area was gained in 1962, by sinking Five Shaft approximately one quarter mile southwest of the proposed complex site, and drifting into the area. Collar elevation of Five Shaft is three hundred feet above the 600 Level Crusher Complex. All muck was loaded into ten-ton granby cars, hoisted to the surface and dumped. (See Figure 1 for the relationship between Five Shaft and the Crusher Area) Drifting into the Crusher Area contunued until 1965 at which time the Crusher Room Cutout was started. The Crusher Access Drift (CAD on Figure 2) war driven and mining pm- ceeded according to the description on drawings marked Figure 3a and 3b. After the arch portion of the Cutout was excavated and concreted, removal of the center "pillar" commenced. This muck was removed with an Eimco 123C crawler-mounted front-end loader. (See Figure 4) A total of 576,000 cubic feet of rock was removed from the Crusher Cutout. All sup- port was afforded by grouted roofbolts on a specified pattern, as shown in Figure 3c. Crane support columns were put into place and held by braces welded to roofbolt heads. Sidewalls and endwalls were formed and concreted. (See Figure 5 for the finished product)

Jan 1, 1970

By Randall C. Divito, Craig R. Eckdahl, Bruce D. Wagener, Joseph Klejwa

The existing Central City Tunnel was built primarily in the 1930s with a small portion as old as the 1880s. It conveys stormwater in downtown Minneapolis. It is a 4,400-ft long tunnel located 80 feet underground. The Central City Tunnel has experienced surcharging and surface overflows during heavy rainfall events. This paper presents the details of tunnel and shaft design for the new Central City Parallel Tunnel to mitigate the overflows. The design considered hydraulics and geotechnical engineering for the structural geologic conditions including the weak Saint Peter Sandstone and overlying strong Platteville Limestone. Ground conditions resulted in tunnel designs including large flat-back box tunnels and unique cathedral-shaped tunnel sections.

Jun 13, 2023

By W. J. Adamson

Strategic Data Planning (SDP) is an emerging technique for the analysis and design of information systems. This paper describes the use of strategic data planning in the formulation of a complete integrated set of mining technical systems for the Koolan Island iron ore mine. Applications covered include hydrogeology, geology, mine planning, surveying, quality control, laboratory and mine production recording. Koolan Island is 13 kilometres long and 5.5 kilometres wide at its widest point. Its sole industry is an open pit iron ore mine of 3 million tonnes annual capacity, owned and operated by BHP Minerals. Some of the production is used by BHP Steel International, but most is exported. The orebody is steeply dipping and is mined bench by bench. Outturn grades for run-of-mine product are iron 66.5%, silica 3.0%, alumina 1.0%. Computer systems are run on Data General equipment, currently an MV10000. Computer applications, which are shared across mine sites, are developed and maintained by BHP Information Systems in BHP's Melbourne Office.

Jan 1, 1986

By Eric Lundgren

The mining paradigm is changing on the continent of Africa. Jessica Kogel?s closing statement from her September 2013 President?s Page (ME, September 2013, pp. 6) has never been more appropriate, ?Africa is shaping up to be the next mining powerhouse, and there is huge opportunity for local communities, national governments and private industry to work together to create a win-win situation for all.? Supporting this notion, attendance at numerous industry conferences around the world demonstrates the shift toward a more sustainable, more environmentally conscious extractive model. But questions remain: How effectively is the industry making this transition, and how willing are companies to learn from the experiences of others? The international development community, as we like to call ourselves, is going through a parallel shift. We are experiencing our own funding crisis; governments are not as flush with resources as they were pre-economic meltdown. But more importantly, after a half century of implementing development programs, we must admit that while some of our programs have been fantastically successful, too many still fail to achieve the goal of poverty alleviation for the world?s poorest. Moving forward, we are forced to recognize that achieving success in scale and sustainability is not always accomplished from our work alone. As the director of international programs for Africare, a nonprofit with more than 40 years of experience implementing community-based development programs in Africa, I can report that our organization is changing the way we think about successful development partnerships. Africare recognizes that for too long the mining sector and nonprofits have been at odds, choosing noncommunication as a ?solution? to the problem. Both sides now recognize that this standoff is outdated, and Africare, specifically, is ready to cross the proverbial line. We see the potential benefits of mining for local communities and, when done responsibly, the opportunity to properly manage Africa?s resource boom as a benefit to all. There are challenges in this conversation. Many mining professionals view nonprofits as whistle-blowers, ready in a pinch to speak to news sources and complain about poor operational standards. Those are advocacy organizations, and while their role is important, they are not the only nonprofits interested in mining operations in developing countries. Organizations like Africare, with decades of experience implementing poverty reduction programs, approach this differently. We know we can work with mining companies to promote economic opportunity in the communities where mining operations are occurring. We recognize that the conversation is difficult, and we are open to discussions about how we can bring our unique experience to bear on the problems faced by mining companies in carrying out their investment programs.

Jan 1, 2014

By James M. Link

The first rule of mineral deposits always seems to be: the deposit is never close to the market. With gems and precious metals, this is not much of a problem. But with most of the mineral commodities used in today's world, transportation becomes a major part of the cost to the consumer. In Japan, for example, more than 60% of the cost of coal to the consumer may be attributed to transportation. The purpose of this article is to examine pipeline transportation, particularly mineral slurry pipelines, as a means of getting the mineral to market. Pipelines Today Regulated pipelines in the US totaled nearly 724 Mm (450,000 miles) in 1980 according to the Federal Energy Regulatory Commission (FERC). Worldwide, more than 210 Mm (125,000 miles) of new pipelines will start construction in 1982 at an estimated cost of more than $150 billion. According to the Bechtel Corp., the period between 1982 and 2000 will see major growth in pipelines of all kinds. In North America, major movements of crude oil from Alaska and synfuels from the Rocky Mountains will require the construction of nearly 16 Mm (10,000 miles) of new pipelines. Nearly 42 Mm (26,000 miles) of new gas transmission pipelines will be needed to tap both US and Canadian arctic gas fields and move the gas to major markets on both coasts. Other pipelines will be required to move additional quantities of natural gas from the Rocky Mountains to more populous regions. Bechtel says more than 24 Mm (15,000 miles) of slurry pipelines will be needed to transport coal from both eastern and western coal provinces to the Mississippi valley and coastal areas. In 1980, 125 companies delivered more than 1 km3 (6.5 billion bbl) of crude oil and 652 hm3 (4.1 billion bl) of products in the US. At the same time natural gas pipelines transported 498 km3 (17.6 trillion cu ft). The reported investment by these companies was nearly $20 billion at the end of 1980. Advantages of Pipeline Transportation The obvious success and vitality of the oil and gas pipeline industry is based, at least in part, on the fact that pipelines are a very efficient and low-cost method of transportation. This fact, coupled with the need for lower cost trans¬portation, has led to the marriage of oil and gas transmission technology and the bulk mineral solids transportation industry. The off-spring of this marriage is the mineral slurry pipeline. Slurry pipelines have a number of advantages over other transportation methods. One of these is the fact that they are buried-out-of-sight, out-of-mind. Second, they are relatively small users of labor because they lend themselves to automation and remote, or even computer control. Third, they offer an attractive economic alternative to other transportation systems. For example, for a 1000 km (621 miles) distance, rail costs of 1?/ km (1.7?/ton-mile) are about equivalent to slurry pipeline costs. But, as the distance increases, pipeline cost per t-km continues to drop while equivalent rail charges remain essentially insensitive to distance. Where existing rail, barge, or ocean ships are available, the cost of new construction associated with a slurry pipeline probably will render it noncompetitive. However, where new rail or other construction is needed, the cost of a slurry pipeline is very competitive. About three-fourths of the cost of a pipeline is in pipe, fittings, and construction. Nearly a fifth of the investment is in pump stations and the remainder is in right-of-way, surface facilities, utility acquisition, communication facilities, and other support areas. The fact that pipelines are capital intensive is, at the present time, a mixed blessing. For example, the delivered cost of coal in a hypothetical project doubles when the cost of money rises from 9% to 17.5% per year. The largest cost element for delivered coal in this example is in depreciation and finance charges. The next largest cost element is electricity to power the pumps, with labor making up the smallest increment of the delivered cost of coal. World Slurry Pipelines The idea of a slurry pipeline was probably first investigated in the latter 19th century, but the first ones were successfully built and operated in the US in the early 1900s. Today, they are fairly common worldwide. Table 1 shows a number of the world's slurry pipelines. An examination of these will further emphasize the fact that pipelines provide a cost competitive alternative where new construction of a transportation system is required. In each of the examples, the desired mineral commodity is located in a remote corner of the world, markets are at a great distance, value of the commodity is not great, and no other transport system is available.

Jan 10, 1982

By Weijie Wei, Jinwang Zhang, Jiachen Wang, Yang Li

"Longwall top-coal caving (LTCC) mining technique is one of the important methods for underground thick seam extraction in China. The coal seam in LTCC panel is divided into two parts: bottom-coal and top-coal. The bottom-coal is mined by conventional longwall method while the top-coal is mined by caving method. The top-coal caving process in LTCC and block caving process in metal mine are both gravity flow of loose ore/coal blocks. However, the presence of caving shield in LTCC makes the characteristics of drawing body shape in the two caving processes differ a lot. This paper discusses the influence of caving shields on the characteristics of drawing body shapes in light of recent studies of the top-coal drawing process. The theoretical model for describing the drawing body shape in LTCC is proposed both along the seam strike and seam inclination. Then, the experimental data are used to validate the correctness of the theoretical model. Furthermore, two examples of how the theoretical findings assist LTCC mining are given and discussed.INTRODUCTIONLongwall top-coal caving (LTCC) mining technique and large-cutting-height mining technique have been widely used for extracting thick coal seams in China. About 0.6–0.7 billion metric tons of coal come from longwall top-coal caving panels every year. The maximum annual production is 15 million metric tons per panel _The mining method employed in such panel is a combination of top-coal caving mining technique and large-cutting-height mining technique, which is suitable for seam height between 12–20 m, as shown in Figure 1. Apart from China, LTCC has also been employed in some coal mines in Australia and Vietnam (Le et al., 2017).The coal seam in a LTCC panel is divided into two parts: bottom coal and top coal. The bottom-coal is mined by the conventional longwall method, while the top coal is mined by the caving method. The top-coal caving process in LTCC and block caving process in metal mines are both gravity flows of loose coal/ore blocks, as shown in Figure 2. However, the presence of caving shields in LTCC causes the characteristics of the drawing body shapes in the two caving processes to differ significantly.There are two main differences between the blocking method and the top-coal caving method:"

Jan 1, 2019

By K. J. Ashley

Over the last six years I have been involved with the calculation of ore reserves and mine planning using various computer systems and soft- ware packages. This experience has given me a unique perspective from which to view the needs of the engineers and geologists whose job it is to produce geologic and mineable ore reserves. The purpose of this paper is to share that perspective with those who are in this field or are thinking of purchasing computer software to aid in these calculations. My first experience with computers in mining was the creation of a mini-computer based coal reserve and mine planning package written as part of my Easter's thesis. This package took about ten weeks to write, four weeks to document, and two weeks to install at the mine for which it was written. It did what it was designed to do, which was to emulate the hand procedure which had been used prior to its installation. The package was specific to its application which involved several small seams of coal being mined simultaneously and would have required major modification for it to be applied to a mine where, say, one thick seam was mined in two benches.

Jan 1, 1985

By A. M. Raichur

Flocculation of fine coal is usually accomplished with the addition of commercially available organic flocculants. Recently it has been shown that biopolymers derived from microorganisms can be used to flocculate coal. The biopolymers flocculate coal efficiently and render the coal surface hydrophobic. The increase in hydrophobicity can be utilized either to separate the coal flocs from mineral matter. It can also be used for reducing the moisture content of fine coal. In this regard, flocculation and settling tests of fine coal with biopolymers and synthetic flocculants was undertaken and the results are discussed here. Also, a transport model was developed for the time-dependent settling tests for fine coal.

Jan 1, 1996

By S. Tan

In this paper, several commonly used computer truck dispatching criteria are evaluated. A computer-oriented truck dispatching and production simulator was developed to provide data for comprehensive cross comparison among the dispatching criteria. The definitions, primary considerations, characteristics, and performances of these dispatching criteria were investigated. From the simulation results, it was concluded that, in general, no one criterion can dominate all others. All basic dispatching criteria including minimizing truck waiting time, minimizing shovel waiting time, minimizing truck saturation, maximizing truck momentary productivity, or truck routes optimization provide a local optimal solution. To obtain a direct global optimization solution for this complex stochastic process does not appear to be likely. Therefore, the search for an optimal dispatching criterion that will fit all conditions may not be realistic. However, based on the simulation results of the mine operation, several dispatching criteria which have good potential to increase performance can be selected. It may be necessary to search for the best combination of these truck dispatching criteria for a given situation. For example, a truck flow measurement such as the truck clustering factor at shovels can be used as a switch parameter to change from one criterion to another. The values for the switch parameter at which actions should be taken to change the criterion can be established through simulation programs.

Jan 1, 1992

By N. T. Rempe

Proper use of natural resources is multiple use. Underground space resulting from mineral extraction offers opportunities for deep geologic waste disposal (DGWD) which can solve many environmental problems. U.S. government projects plan to use specially mined excavations to dispose of radiotoxic and mixed waste. DGWD takes careful planning, technology transfer, and true partnership between waste generators and mine/repository operators. Using the experience, accumulated by domestic projects in preparation, and by foreign repositories in operation, U.S. mines can claim their rightful share of the growing market for DGWD.

Jan 1, 1996

By C. A. Rowland

The rising costs for and the possibility for limited availability of electrical energy are emphasizing the continual conflict faced in the selection of comminution circuits used in preparing ores for concentration, namely; capital cost vs. operating cost. Frequently, the circuit with the lowest capital cost is not the most efficient in the use of electrical power and wear resistant materials. The simplest circuit in terms of flow, pieces of equipment and capital cost is the single stage autogenous or partial autogenous circuit used to grinding primary crusher discharge or run of mine ore to the desired product size. (Fig. 1) From this circuit, complexity increases to multi-stage crushing circuits preparing feed for multi-stage grinding circuits. Fig. 2 showing a three stage rod mill ball mill arrangement is an example of a complex grinding circuit. Stage concentration further complicates the flow. Multi-stage circuits being the most expensive to install, often give the greatest operating flexibility and offer the best possibilities for the most efficient use of available power and wear resistant materials. Within available grinding circuits, other comparisons such as high speed vs. low speed mills, grate discharge vs. overflow discharge, metal liners vs. rubber liners, high charge vs. low charge, etc. all add to the conflict

Jan 1, 1977

By Don Suttie, Frank Roybal, John Wright

The Roybal Raise incorporates the simplicity and low cost of a short bald-headed raise while overcoming the usual impediments to driving a high baldheaded raise. The concept provides for speedy excavation and maximizing the use of the excavated opening, using the rock for structural support. The design is simple: two baldheaded raises are driven parallel to one another, interconnected by dogholes about 8 m (25 ft) apart. In this fashion, the raise can be driven safely and efficiently to 60 m (200 ft) or more. When the raise is complete, the excavation requires no timber for support or partitioning. Rather, the rock itself supports the construction. As a test, a two-compartment Roybal Raise was attempted at the Independence mine in the Willow Creek District of Alaska. One side was driven 2 x 2 m (6 x 6 ft), intended for a manway and equipment skip. The other was driven 1.5 x 1.5 m (5 x 5 ft) for a muck compartment. Both sides were driven at a 65° angle from horizontal and 1 x 1 m (4 x 4 ft) dogholes spanned the 4.6-m (15-ft) pillar between the two compartments. After topping out at 50 m (160 ft), the raise was found to meet all expectations of efficiency, low cost, and practical simplicity. Technique Preparing the Roybal Raise for driving involves no elaborate or costly site prep except assembling materials and providing for muck removal. Normally, the raise muck falls directly onto the sill or track and is picked up either by an overshot mucker or a front-end loader. Raise mining proceeds initially by taking up both compartments simultaneously to the first doghole. It progresses by alternating one side as a clear manway for access with the other side, the active side, as a muck compartment (Fig. 1A). This stage proceeds quickly for no mucking or staging is required to cycle the first three rounds. On the fifth round, in addition to the normal raise round, rib holes are winged out toward the adjacent raise, thus starting the dogholes. Finally, as the sixth raise rounds are drilled and shot, the first doghole is also completed from both sides. The second stage commences by establishing one side as a clear manway for access while the other side, used as a muck compartment, is prepared for active mining. Figure 1B illustrates this step in the succession of raising with the active side advancing to the second doghole level. During this stage, services are maintained through the manway side and equipment is stowed in the doghole during blasting. As the active side advances, muck may be allowed to fill the bottom portion of that side since it is unnecessary to clear it for access. The next stage of raising involves cleaning out the former muck compartment and preparing it for use as a manway. At the same time, the former manway is prepared for advance and use as a muck compartment (Fig. 1C). As in the previous step, the same doghole is used for access and equipment storage. The active side advances until the second doghole is completed, at which point equipment and access are moved to the new doghole. From there, the active side is driven past the second doghole 8 m (25 ft) more to the third doghole level. Again, half of the doghole and the next raise round are mined. The fourth stage involves switch ing back the manway side for the muck side (Fig. ID). The new muck side is driven to the third doghole where equipment storage and access are reestablished. From there, the active side is advanced to the fourth doghole. In the same fashion, the raise is advanced to the top, alternating the manway side with the active side, maintaining access through the inactive manway, and storing equipment in the uppermost doghole. The cycle time for driving each compartment, regardless of the raise height, is greatly improved over that for normal bald-headed raises of comparable height. By storing equipment in the upper-

Jan 1, 1984

By M. S. Davis

The Tek Process can produce masonry products such as bricks, roof or wall tiles, and block from virtually any inorganic waste. In the process the aggregate raw materials, portland cement, water and common chemicals are first mixed together; then mechanically subjected to several thousand pound pressure per square inch. This causes a novel chemical reaction between the cement, chemicals and water; producing the "patented" Tek adhesive binder which holds the aggregate together in a stone-like mix. Simultaneously, the desired product shape is formed. The building modules can have strengths of 8000 p.s.i. (pounds per square inch) with completely sound aggregates utilizing air curing for a period of 28 days. With most aggregates, 3000 p.s.i. is achieved within 24 hours. Eventual strengths usually exceed 5000 p.s.i. with almost any raw material. Water absorption ranges from 5-7.5 percent. Both absorption and strength figures are superior to the most rigid of any and all A.S.T.M. specifications for the highest quality bricks. In most locations, the product (when brick shaped is called Tekbrik) can be produced significantly more economically than can comparable grades of clay or other bricks, be- cause almost any inorganic waste materials or pollutant can be used as a raw material. The process results in a lower manufacturing cost as compared to clay bricks; fuel cost to operate a clay kiln represents a substantial portion of the total cost. Capital expenditure for a Tek plant also is lower due to the large investment in clay kilns. Transportation savings also are important, clay brick factories must be very large because the kilns are uneconomical unless they are large. Most bricks are manufactured at the sites of clay deposits in relatively uninhabited areas. The cost of transportation to the job site represents a considerable percentage of the selling price.

Jan 1, 1974

By B. Simser, T. Butler

Glencore’s Nickel Rim South Mine, located in Sudbury, Ontario, Canada, is a primary/secondary blasthole operation with ore zones lying between 1,100 and 1,700 m below surface. One of the main benefits of the primary/secondary mining method in high stress ground is that up to 50% of the mining will take place in secondary stopes that should be in a yielded rock mass state. Every future secondary mining stope begins as a primary stope abutment pillar. As with many mines, the stress loading history and rock mass conditions can vary considerably in space and time. Safe mining practices cannot allow for an assumption that the planned secondary stopes are indeed yielded. An incorrect assumption can result in mining development and stoping taking place in high stress ground rather than the expected yielded rock mass conditions. This can result in higher levels of seismicity than expected and incorrect ground support recommendations in areas where workers could be exposed. Seismic monitoring is the mines’ premier tool to track the actual rock mass response to mining. Yielded zones have a reasonably clear seismic signature/pattern over time that is visible in the collected data. The ability to accurately locate small magnitude seismic events can help define and delineate different stages of rock mass failure. The vast majority of the seismic data recorded by the microseismic monitoring system is below moment magnitude (Mw) 0.0. Examples are provided showing how small seismic events (Mw < -1.5) can help provide feedback from the rock mass deformation that allows the ground control engineer to gain a better understanding of how the rock mass is responding to mining processes.

Apr 26, 2022

By Carson Rife, Michael L. Clark

INTRODUCTION Zortman Mining Inc. is a wholly owned subsidiary of Pegasus Gold Corporation of Spokane, Washington. Pegasus has been producing gold and silver from the Zortman and Landusky mines since 1979. The Zortman and Landusky mines are two distinct open pit mines located approximately 6 kilometers apart in the Little Rockies Mining District of north central Montana. The two mines use large-tonnage, low- grade heap leaching techniques to efficiently process the gold and silver ore. PROJECT DESCRIPTION The Little Rockies rise abruptly 914 metres from the surrounding plains to about 1829 metres above sea level. The topography is quite steep, making efficient leach pad construction a major challenge. The climate is semi-arid with moderate summers and occasionally severe winters. Freezing temperatures usually arrive in late October or early November, influencing the effectiveness of leaching operations. GEOLOGY AND MINERALOGY The geology of the Little Rocky Mountains consists of steeply dipping sedimentary ridges forming an elliptical dome surrounding a core of intruding syenite porphyry. Within the syenite porphyry are well fractured and mineralized shear zones where the existing reserves and open pits are located. The ore is presently divided into oxidized, mixed, and sulfide. Only the oxides and mixed zones that are of ore grade are placed on the leach pads. The syenite porphyry host rock enables effective leaching of gold and silver to depths of 61 metres, having a major impact on leach pad construction costs. MINING All mining since 1979 has been by contractor. This enabled initial mining to commence without capital investment in equipment. Through competitive negotiations, Pegasus has been able to keep contract mining costs at levels very close to what would be experienced if Pegasus had purchased equipment initially. Contracts are negotiated yearly and are based on a unit price and haul distance for ore and waste. Haul distances have ranged from as little as 457 metres to as much as 3,050 metres. At present, Pegasus is developing a 27,000,000-tonne leach pad at the Landusky project that is adjacent to the minine area. This design feature will reduce the mining cost by 20 percent over the life of the mine. In 1987, over 5,900,000 tonnes of ore and 3,200,000 tonnes of waste will be mined at the Landusky project. Through 1986, 13,763,000 tonnes of ore have been mined at a waste-to-ore strip ratio of 0.60:l at the Zortman project, and 13,005,000 tonnes of ore at a waste-to-ore strip ratio of 0.79:l have been mined at the Landusky project. Current mining reserves are 32,769,000 tonnes of ore at a waste- to-ore strip ratio of 0.59:l. Through efficiencies of large-scale heap leaching, Pegasus has been able to lower the mining cutoff from 0.34 grams per tonne gold to 0.27 grams per tonne gold. This has reduced the mining cost per tonne of ore h percent through a reduction in strip ratio of 14 percent. Beginning in 1984, all pits were designed based on computer-generated "floating cone" pits. The geologic models were developed by Pegasus staff with a series of economic models evaluated. The resulting computer-generated pits were used as a guideline in designing the mine plans, including haul roads for final calculation of tons and grade. Input to the floating cone models consisted of mining cost, processing cost, cutoff grade (0.34 grams gold per tonne), recovery (67 percent) and gold price. Due to the gold being deposited primarily on the fractures of the syenite host rock, no crushing of ore is needed prior to leaching. This characteristic of the ore is a key in being able to profitably mine and process gold ore at an average grade of 0.69 grams of gold per tonne. Strict blasting control is also a key in success of the leaching operation. A system of splitting ore and waste in blast patterns has been devised to reduce dilution. Also, drill hole spacings are varied from 3m x 3m in breccia ore to 4m x 4m in syenite ore to 5m x 5m in waste. Drill holes

Jan 1, 1987