Search Documents

Experimental Mine, Val d'Or, Quebec, Experiments on the ignition of sulphide dust clouds by explosives have been conducted in a 1 m3 explosion chamber. The explosives tested are ANFO, emulsion, aluminized emulsion and Detasheet. By controlling the composition of the ANFO and the emulsion explosive the oxygen balance could be changed in order to identify the dominant factors in the ignition of sulphide dust clouds by explosives. Experimental results, combined with theoretical calculations, show that the temperature of the detonation products is the most important parameter in the ignition of the dust cloud while the combustible detonation products are of secondary importance in the case of non-aluminized mining explosives. In the case of aluminized explosives and explosives having very negative oxygen balance the ignition of the dust cloud is assisted by the large amount of combustible detonation products.

Jan 1, 1993

By Linda Dufour

"Autoclaves have been in commercial use in the mining industry since the early 1950's the initial applications included tin, uranium, cobalt, nickel and copper extraction under both acidic and alkaline conditions. These circuits varied in batch or continuous operation. The geometry has been spherical, vertical, and horizontal type with up to six agitators, with throughput as high as 1000 stpd.Presently autoclaves are a good process selection for many refractory sulphide gold bearing ores. The first application of pressure oxidation in the gold industry was at the Homestake Mcglaughlin's Mine which was commissioned in 1985. This was an acidic pressure oxidation process treating 3000 stpd in three four compartment horizontal autoclaves 14' diameter and 53' long. Since the initiation of autoclaves for the treatment of gold bearing sulphides, there are presently 16 gold autoclaves operating worldwide varying in size up to 18'4"" inside diameter. There are seven autoclaves for the treatment of refractory sulphide gold bearing ores to be commissioned in 1997 and 1998.Autoclave technology has progressed extensively since the mid-eighties. Operational experience has made rapid progress and the result is much smoother and safer autoclave operation. There have been many advances in autoclave technology design. For example, the use of exotic materials for corrosion resistance to reduce down time for maintenance. The instrumentation involved in autoclave operation is very sophisticated which allows for many safety features. The advanced design has allowed for greater availability and as a result operating costs and maintenance costs have decreased. These technological advancements have made autoclave technology more safe and this has resulted in a greater acceptance of this type of operation. Many of the gold autoclave facilities operate up to 9 months continuously without shutdowns. The advancement of autoclave technology has inspired many new applications.Because of the outstanding operation of autoclaves in the gold industry, many other applications for autoclave technology are being considered. The following is a list of autoclave applications:"

Jan 1, 1997

By P. R. Richardson

"Milling is the weak link in the process chain of many mineral operations. While this activity accounts for only a relatively small proportion of the direct costs of most mineral processing complexes, there are intangible and indirect costs associated with milling which are extremely large. For example, significant opportunity costs are associated with the relatively low yields which characterize this stage of the process.There are changes abroad in the world which I believe are going to cause us to reformulate the whole concept of milling. Increased competition in mineral markets are going to force managers to look anew at the high mineral values reporting to tailings which are a high opportunity cost for many operations. Tailings recovery plants are not the ultimate solution to this problem. Greater environmental concerns are going to increase the costs associated with tailings disposal and force the mining industry to look for other ways to dispose of waste products. Technology changes currently underway in manufacturing and other process industries, such as the automated 'lights-out' plant are going to be brought into this industry, and the changes will be dramatic.These are major long term changes which probably seem rather remote to many managers and professionals in existing operations which are faced with much more mundane challenges arising from day-to-day operations. However, I believe that milling is increasingly a 'lean and keen' operation involving fewer and fewer people, but who are increasingly skilled and professional. Traditional cost management approaches are no longer adequate and the industry has to take a new look at the nature of cost reduction in this core activity. This stage in the mineral process provides opportunities for value creation leading to a significant unit cost advantage for the corporations willing to adopt a total cost approach."

Jan 1, 1988

By J. R. Yates, R. J. Young, G. E. Forward, J. B. Farrell, R. J. Milbourne

"Sustainable development in the mining and metallurgical industrial sectors can be implemented by two distinct groups: the managers and operators of existing facilities, working with industrial processes and systems that have been operating for many years, in some cases, several decades; and those who are engineering and building new facilities or upgrades of existing plants.The focus of this paper is to look at approaches and tools available to bring sustainable development thinking and action to these two distinct areas. The paper will discuss the concept of working with existing facilities and processes to minimize waste and maximize product from a regional raw material/resource consumption perspective using by-product synergy. The BPS concept has been carried out in Texas (e.g., TXI-Chaparral’s STAR), in Calgary, Alberta, with Suncor assistance, in Montreal, Quebec, with Noranda as project leader, and currently in Ontario with Dofasco as industry champion. Successful outcomes are presented. The paper will also discuss a new approach to designing greenfield facilities or upgrades to existing plants using a sustainable development review process. Undertaking the review early in every project can institutionalize the concept of discussing and implementing waste elimination, design for environment, ecoefficiency, risk minimization and community awareness and involvement in the future capital stock. The review process has been developed as an excellent tool for measuring and reporting on a corporation’s sustainable development progress. Examples of how this approach has been adopted in the mining and metallurgical industry, and the resultant outcomes are given."

Jan 1, 2003

By Reno Pressacco

Abstract- Agrium Inc. is a world leader in the production, distribution, and marketing of agricultural products and services in both North America and Argentina. The new phosphate mine and mill complex located southwest of Kapuskasing, Ontario, was constructed to replace an offshore supply of phosphate rock, and produces a high-grade phosphate concentrate. The Cargill Township Carbonatite Complex is one of a series of carbonatite complexes in the region that are hosted by the 1.9 Ga aged Kapuskasing Structural Zone. The carbonatites in the mine area have intruded Archean gneissic granodiorite rocks of the Wawa Subprovince, and metasedimentary rocks of the Quetico Subprovince. The Cargill Carbonatite Complex displays a typical concentric zonation pattern from an outer ring of alkalic pyroxenites, through an inner ring of sövite-carbonatite, to a central core of rauhaugite-carbonatite. The initial carbonatite intrusion and subsequent residual orebody have been modified by faulting such that the northwestern third of the complex has been displaced approximately 2.5 km northeast. The phosphate ores are composed principally of residual apatite sands that were formed by the weathering and dissolution of the soluble minerals of the carbonatite protolith. These ores are subdivided by their iron content into high grade (A ores) and lower grade (B1 and B2) ores. They are separated from the primary unweathered carbonatite by a layer of saprolite, whose thickness varies depending upon the composition of the underlying carbonatite. Cretaceous waste materials consisting of well-sorted silica/kaolinite sand and peat deposits are typically found to stratigraphically overlie the ores. A minor amount of the ore feed comes from cemented phosphate ores. All rock types are covered by Pleistocene glacial tills and clays.

Jan 1, 2001

By D. Fleury

"This paper describes the challenges of mining a sill pillar under various types of paste backfill quality. From 1994 to 2002, Louvicourt mine produced approximately 12,600,000 t grading 3.5% Cu, 1.5% Zn, 27 g/mt Ag, and 0.85 g/mt Au. The mining method is transverse blasthole stoping, mining primary and secondary stopes. The production of this 4,300 t/d operation was accomplished using two mining horizons; from the 655 m level to the 415 m level and from the 860 m level to the 680 m level. The main sill pillar is between the 680 m level and the 655 m level. The second sill pillar is between the 885 m level and the 860 m level representing a quarter of the main sill pillar in size. Since 2002, production has gradually decreased and mining activities are expected to end in mid-2005. The sill pillar production will represent almost 25% of the total mine production. The overall recovery of the sill pillars stopes will be discussed in this paper. To recover the sill pillars, more than 1,500 m of development was planned in or under paste backfill. The first sill pillar stopes under paste backfill were mined out in 2002 with excellent results."

Jan 1, 2005

By P. A. Hacquebard, M. P. Avery

"Gondwana coal deposits are widespread and are known to occur in four continents. They are present in Brazil, India, South Africa, and Australia. From coal petrographic examinations and a detailed literature survey, it is interpreted that Gondwana coals are present also in Canada and the United States. Laurasia, or Northern Hemisphere, coals occur in the United States, Canada, and Europe. They form the main coal producing fields of the world. Megascopically, Gondwana coals have a uniform, micro-banded appearance, with a dull lustre; Laurasian coals are bright and have distinct bands of vitrain and clarain. Petrographically, Gondwana coals, compared to Laurasian coals, are lower in vitrinite, but higher in inertinite, particularly in semifusinite. Mineral matter averages 16% in Gondwana coals and 5.7% in Northern Hemisphere coals.Gondwana coals are characterized by thick seams that terminate through lithification (Versteinerung), whereby coal passes laterally into shale. Laurasian coal seams are thinner and terminate by splitting and digitation.Vitrinite/inertinite ratio data indicate deposition of the Gondwana coals in dry marshes under strong oxidizing conditions. The Laurasian coals originated in wet marshes in a reducing environment. As deduced from fossil plants and fossil spores, temperate and near arctic conditions apply for the Gondwana coals. A tropical and subtropical climate is indicated for the Laurasian deposits. The Gondwana coals were formed under allochthonous conditions. They derived from vegetation that drifted into the peat bogs. The Laurasian coals are autochthonous and originated from vegetation that grew and was buried in the peat bogs. The Gondwana coals are Late Carboniferous and Early Permian. The Laurasian coals are entirely Late Carboniferous."

Jan 1, 2004

By E. LaRocque

"Denison Mines Limited has been processing uranium ore in the Elliot Lake area since May of 1957. The ore body is located i11 the Huronion sediments on the north limb of the Quirke Lake syncline. Minerals of metallurgical significance are brannerite, uraninite and monazite. Gangue minerals include quartz, chlorite, sericite, pyrite, pyrrhotite and rutile. Silica content of the ore is greater than 75 % and pyrite-pyrrhotite content around 7 %. Specific gravity of the ore is 2.75.The Denison flowsheet is based on sulphuric acid leaching to extract the uranium values from the ore followed by liquid-solid separation to wash the uranium-bearing solution from the barren ore. The resultant pregnant solution is concentrated and purified by ion exchange followed by two-stage precipitation with ammonia to produce an ammonium yellow-cake.Elliot Lake ores require high acid concentrations and high temperatures to extract the uranium from brannerite and monazite. Uraninite will leach at low acid concentrations as long as oxiclizing conditions exist. The whole ore must be treated so that these conditions do exist.This paper provides a description of the leaching process equipment as originally installed and major changes in that equipment to date. Process control refinements to economically improve extraction are also discussed."

Jan 1, 1979

By G. P. Holmes

"IntroductionThe copper-molybdenum property of Brenda Mines Ltd. is located 18 miles north west of Peachland in the Okanagan Valley of the Southern Central interior of British Columbia. The actual site is 50 miles north of the international boundary and 150 air miles east of Vancouver at an elevation of 5000 feet above sea level. The earliest written mention of the prospect is found in the Geological Survey of Canada, Memoir No. 243, issued in 1947 by Dr. H.M.A. Rice. In 1954 the area was staked by a prospector, Bob Bechtel, who interested Bern Brynelsen of Noranda Exploration in examining the claims. A joint Noranda - Kennecott program resulted but since the grades were so low the property was not taken up until in 1964 a re-examination by Chapman, Wood and Griswold produced recommendations leading to the construction of the Brenda Mine as it is today.The rounded, timber covered mountains of the area are composed of the tuffs, argillites and limestones of the Upper Triassic Nicola Group, which is intruded by a Jurassic quartz diorite, called the Brenda stock0 The actual orebody occurs in a strongly fractured zone within the Brenda stock, approximately 1500 feet from the contact with the Nicola group0 The ore minerals, .chalcopyrite and molybdenite, associated with pyrite and magnetite of lesser importance, occur as fillings within the fractures 0 The grade of the ore decreases outwards from a central higher grade core and in January 1971 total reserves were estimated at 165 million tons assaying 0,182% Copper and 0,049% Mo."

Jan 1, 1972

By P. Fossi

This report describes a pilot-scale study of a hydrometallurgical process to treat high-grade nickel matte or a nickel-cobalt sulphide precipitate to produce high-purity electrolytic nickel. The first step of the process is the oxidative leaching of the nickel-bearing material by nitric acid; the nitrous gases generated during leaching are reconverted to nitric acid. The crude nickel sulphate nitrate solution is purified and is then subjected to a denitrification step. Nitrate separation is effected either by the crystallization of nickel sulphate or by precipitation of basic nickel carbonate. The electrolyte is prepared from the nitrate-free material and nickel is then recovered by electrolysis of the sulphate solution using insoluble anodes. Some technical and economic problems encountered with this processing route are discussed and the method is compared to the "all-chloride" process developed by Société Le Nickel.

Jan 1, 1977

"The Cordillera contains numerous porphyry deposits and prospects, many containing economic quantities of copper, molybdenum, gold and tungsten. Over the lost twenty years, different phases of exploration have been driven by individual commodity prices and new discoveries. Exploration methods have remained largely unchanged since the 1960s and 1970s with the range of techniques chosen for each situation depending on the stage of the program, the type of porphyry target and the local environment. Improvements or changes to techniques have resulted from awareness of specific features in new deposits or regional problems. During the last ten years much of the emphasis has been on the re-evaluation of known porphyry deposits with more exploration in areas previously recognized as prospective. Re-evaluation of known deposits has resulted in increased reserves, often with improved gold grade, and the discovery of new zones. Several new deposits have been discovered including gold-only deposits of probable porphyry affinity.Research related to porphyry deposits has followed trends in exploration and has been directed toward the type of deposits that have been of current interest. In addition to research on specific deposits and areas, general research related to porphyry deposits has addressed three broad themes. The first theme involves the role of tectonic processes and the nature of source regions. Although different in detail, recent tectonic models suggest that a tectonic change or hiatus may be important for the generation of metal-rich magmas from various source regions and subsequent fractionation that permits volatile saturation. The second theme is based on magmatic processes, particularly the generation of a volatile phase enriched in metals. This research supports the general orthomagmatic model for porphyry deposits and has helped to define the influence of specific variables in the generation of different types of porphyry deposits. Finally, research on alteration and mineralization has provided evidence for different types of fluids and fluid processes involved in the formation of porphyry deposits. These data also support the orthomagmatic model but indicate additional complexity in magmatic-hydrothermal systems including the role of external fluids. Although important advances have been made, research has had a limited impact on exploration.Exploration and research on deposits that occur in the peripheral and upper parts of porphyry systems have been important over the last ten years. Although considerable advances have been made, the relationship of different styles of peripheral mineralization to magmatic processes in the core of the system remains ambiguous. An improved understanding of the processes that generate zoning, peripheral mineralization, and the surrounding alteration envelopes would be beneficial to exploration."

Jan 1, 1995

By H. H. Gardner

INTRODUCTION THE problem of mechanization is one of the most vital in the minds of Alberta coal operators today. In these times of constantly increasing operating costs, any way of decreasing the cost of a ton of coal must be explored to the limit. There seems no better field for such effort than the successful application of power to the mining and loading of coal. We are fortunate in having neighbours to the south who have made .remarkable progress in recent times along these lines. Higher tonnages per man have resulted in higher wages to the employee and lower cost to the employer. It might seem that our problems could be solved merely by imitating our neighbours. Unfortunately, neither practice nor experience substantiate this conclusion. It is with the purpose of reviewing our accomplishments, as compared with practice in the United States, and at the request of the Prgoramme Committee for this meeting, that this paper is written. The Committee believes that such a general discussion and comparison may well lead to further advances in our mining methods. SUMMARY OF PRACTICE IN THE UNITED STATES A visit to the highly mechanized coal mines of the United States is always most instructive and encouraging.

Jan 1, 1951

By Samantha Beeson, Collin Poole

"This paper examines the development of two new selective flocculation techniques for recovering KCI values from low grade carnallite potash ore.Direct recovery of KCI was achieved using one of two mid-range molecular weight polymers, one non-ionic and the other strongly cationic, in conjunction with the same selective anionic dispersant. From initial response studies on pure minerals and selective flocculation tests on synthetic mixtures, investigations were extended to recover KCI values from a natural carnallite potash ore. A single-stage process achieved products grading up to 61.3% KCI at recoveries up to 85.4% for the cationic flocculant suite and up to 64.8% KCI with recoveries as high as 90.3% for the non-ionic flocculant suite, with dispersant and flocculant dosages of 150-250gr1 and 10-75gr1, respectively. These results clearly demonstrate not only the feasibility of treating such problematic ores at low reagent dosages, but also the potential elimination of desliming prior to froth flotation.The experimental results presented are considered in terms of the reagent adsorption phenomena present in the system and various aspects of floe formation and cleaning.IntroductionAs high-grade sylvinite potash ores become scarce, lower grade sylvinite and carnallite potash ores are becoming more attractive. However, these ores often contain large amounts (up to 15% by weight) of water-insoluble slimes which must be removed prior to KC! flotation, owing to their high adsorptive capacity for the amine collectors used. The slimes are generally removed by scrubbing followed by hydroclassification and any residual material not eliminated is blinded with reagents such as guar gum or starch to inhibit interference in subsequent KC1 flotation.An alternative approach used commercially in Canada by Agrium Inc. involves water-insoluble slimes flotation prior to KC! flotation. In this process, the slimes are selectively flocculated and then separated by froth flotation. Losses of KC! to the slimes product and associated brine requirements are both reported to be less than those encountered in conventional desliming, but the technique is somewhat limited in its application at present."

Jan 1, 1997

By L. S. Urbanoski

This presentation describes a major modernization project at the Geco concentrator. The objectives of the program were to replace obsolete flotation equipment and upgrade process controls.Noranda Minerals Inc. — Gecc Division is located at Manitouwadge in Northern Ontario. The community is situated north of Lake Superior approximately equidistant from Thunder Bay and Sault Ste. Marie.Milling operations began in September, 1957. The mill processes a complex base metal ore by differential flotation techniques to produce copper, lead and zinc concentrates. To date some 43 million tons have been milled, qualifying Geco as a rather major base metal deposit.II. BACKGROUND:The Geco concentrator was designed and constructed in the mid 50's. A number of features specific to a concentrator of that vintage provided the justification for the modernization efforts described herein.Firstly, the mill was constructed without any instrumentation, not even pneumatic controls. Solid state electronics, computers and related instrumentation were unheard of, or rather primitive by today's standards.Secondly, some of the major equipment, in particular the flotation equipment, did not compare favourably to that in use today. MacIntosh flotation machines (more commonly known as Mac cells) were installed at Geco. These cells were prevalent in a number of concentrators built by Noranda, including Quemont Mining Corporation Limited, Gaspe Copper Mines Limited and Noranda — Horne Division. The Mac cells were used for copper and zinc rougher and scavenger operations. Some units were also installed for a pyrite recovery circuit that was never operated. In total, 104 Mac cells were installed in the main flotation area of the concentrator.

Jan 1, 1987

By K. Law

"The Hatch Product Transport (HPT) system is a highly flexible and configurable route selection and sequencing system for controlling large bulk material handling facilities. The system has a generic control algorithm that can be configured to suit any material handling facility. It can also be easily reconfigured to cater to plant expansion or modifications without incurring significant disruption to the existing production, costs in testing, and re-commissioning, thus achieving cost savings throughout a facility’s lifecycle.This new material handling control system has been installed at BHP Billiton’s Port Hedland iron ore terminal to facilitate its expansion to beyond 100 Mt output capacity."

Jan 1, 2006

By G. A. Kosick, G. S. Dobby, O. Matwijenko

"A 100 kg/hr portable flotation pilot plant has been operated at Kidd Creek Mines with the objectives of:(a) determining performance expected by column flotation circuits on primary zinc and copper cleaning, and (b) evaluating column flotation circuit configurations.The self-supporting pilot plant, owned by Minnovex Technologies Inc. and operated by Minnovex and the University of Toronto, consisted of three 16 cm diameter by 6.5 m high columns and a bank of four Denver No. 7 cells. It was configurable to any arrangement using these four (or fewer) units. The columns were controlled through the use of multiple pressure transducer measurements. This paper presents the approach to testing and the results of more than 70 circuit tests. INTRODUCTIONThe integration and retrofitting of flotation columns within existing mechanical cell flotation circuits is becoming a common occurrence. The correct approach to this integration, however, is often difficult to define, due to a scarcity of previous experience and the difficulty in predicting column circuit performance. In most cases, the effect of column implementation has been experimentally assessed using a single pilot column, with the consequence that selection of an appropriate circuit to implement is difficult. Important considerations are the impact that column water addition will have on the existing operations, and the differences between mechanical cell and column performance in integrated cleaning circuits.To address the problem of circuit selection a portable flotation pilot plant, consisting of both columns and mechanical cells, was designed and constructed by Minnovex Technologies. The pilot plant was structured for complete flexibility of circuit configuration, with the intent to provide a means by which both research and plant personnel could determine the best possible column circuit configuration for a given application."

Jan 1, 1990

By J. R. Goode

"The Las Cristinas deposit in Venezuela contains reserves of 12.8 million ounces of gold at a grade of 1.20 g/t (Crystallex, 2004). The deposit comprises fully oxidized saprolite (SAPO) overlying a layer of sulphide-enriched saprolite (SAPS) which lies above carbonateleached bedrock (CLB) and carbonate stable or un-leached bedrock (CSB). Gold occurs at about the same concentration in all lithological groups. The bedrock units contain minor amounts of copper (about 0.1%) as chalcopyrite, while SAPO contains virtually no copper which has been leached and deposited in the SAPS zone.A previous owner began investigation of the Las Cristinas deposit in 1991. Over the next seven years, the company drilled 1,174 holes with a total length of 159 km, conducted extensive metallurgical testwork, including pilot plant operations, and completed feasibility studies. Construction was started in 1997 and again in 1999, however, on each occasion was suspended.Crystallex has been producing gold inVenezuela since the early 1990s. In 1997, Crystallex acquired Inversora Mael which had held two of the claims to the Las Cristinas concessions since 1986. In September 2002, Crystallex entered into a definitive agreement with the Corporación Venezolana de Guayana (CVG) to develop the Las Cristinas deposit.An extensive program of studies and testwork was started in late 2002 to determine an optimum development plan for Las Cristinas. Mine Development Associates, SNC–Lavalin Engineers and Constructors, SGS Lakefield Research Limited, J.R. Goode and Associates, and A. Laplante at McGill University acted as the main contractors.Because of the potential value of by-product copper, earlier flowsheets used carbon-inleach for SAPO, but processed all other ore types by flotation to produce a gold-copper concentrate with cyanide leaching of cleaner tailings to maximize gold recovery. Cyanide recovery was necessitated by the high copper content of the leach feed. Initial studies of available data by Crystallex revealed that direct leaching of all ore types would provide about 11% more gold recovery than the previously selected flotation route with reduced capital and operating costs.Bench and pilot-scale studies have confirmed that a SAG-ball mill-gravity-CIL route is very effective for all ore types and will give about 89% gold recovery. This paper describes the testwork conducted in 2003, discusses a 20,000 t/d plant design, and presents economic data."

Jan 1, 2005

By F. C. Lendrum

"This paper had its origin in a panel discussion organized by the Canadian Uranium Producers Metallurgical Committee (CUPMC) at their Annual Meeting in Blind River in May, 1964. The reason for the panel was the formation of the National Uranium Tailings Research Program funded in the amount of ten million dollars by the Federal government. According to the bureaucrats in charge the program would seek to solve the perceived problems as well as any actual problems they believed existed with uranium tailings. Dr. Allan Ashbrook of Eldorado Nuclear chaired this panel and his summation of the panel's purpose was set out as ""Regulation and the Regulatory Process in the Nuclear Industry, Where Have We Been, Where Are We Now and Where Are We Going""?"" This paper will try to relate these questions to the whole mineral industry.The Canadian Mining Association has been telling us our natural resources are today required only if they are competitively priced with those produced in so called ""third world"" countries where labour rates are lower, environmental restrictions may be less and every effort is made by the local government to sell their product. It is in this hostile economic climate that the Canadian mining industry now finds itself. Before going further I want to stress these comments apply only to: a) Mines financed by private capital in a free enterprise society.b) Mining companies want to operate in an environmentally safe manner. However, they must earn a profit because no company financed with private capital can borrow money ad infinitum.WHERE HAVE WE BEENNone of us today would want to return to the days when the mill waste management system consisted of pumping the tailing to the nearest slope and letting nature's law of gravity do the rest. This was the way it was in early gold mines in Nova Scotia, tin mines in Cornwall, England or silver mines in Cobalt, Ontario and survives today in countries where climate, customs and methods of doing business are far different from Canada. As mill tonnage rates increased, more sophisticated systems evolved often designed for mining areas with different climates. Systems imported from arid climates such as south-west United States retained the solids but allowed bacterial oxidation of the sulphides promoting acid drainage. Environmental regulations were introduced and Canadian mines learned to handle tailings in our climates."

Jan 1, 1986

By Lawrence Devon Smith

"What is Due Diligence?Within the mining industry the term “due diligence” is used to describe a detailed data review, generally in connection with the purchase or sale of a mineral property, the approval of a large capital expenditure, or the borrowing of a large sum of money.The term originates in the requirement of the board of directors of a corporation to “act honestly and in good faith ... and exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances” (OBCA, 1994). Furthermore, the law assumes that a corporation (or its board) will have exercised due diligence in the acquisition of an asset and, therefore, knowingly (in the absence of fraud or deceit) will have taken on the liabilities and obligations associated with the asset (Nelson, 1994). This is the familiar “Buyer Beware”.Directors are liable for their decisions except “if the director relies in good faith upon financial statements of the corporation represented … by an officer of the corporation or in a written report of the auditor, or a report of a lawyer, accountant, engineer, appraiser, or other person whose profession lends credibility to a statement made by any such person.” (OBCA, 1994).Hence the importance of reports prepared by professionals. They provide confirmation that the directors have exercised due diligence in the performance of their duties. For this reason these reports are referred to as due diligence studies"

Jan 1, 1997

By Lawrence Devon Smith

"Within the mining industry the term “due diligence” is used to describe a detailed data review, generally in connection with the purchase or sale of a mineral property, the approval of a large capital expenditure, or the borrowing of a large sum of money.The term originates in the requirement of the board of directors of a corporation to “act honestly and in good faith and exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances” (OBCA, 1994). Furthermore, the law assumes that a corporation (or its board) will have exercised due diligence in the acquisition of an asset and, therefore, knowingly (in the absence of fraud or deceit) will have taken on the liabilities and obligations associated with the asset (Nelson, 1994). This is the familiar “Buyer Beware”.Directors are liable for their decisions except “if the director relies in good faith up on financial statements of the corporation represented by an officer of the corporation or in a written report of the auditor, or a report of a lawyer, accountant, engineer, appraiser, or other person whose profession lends credibility to a statement made by any such person.”(OBCA, 1994).Hence the importance of reports prepared by professionals. They provide confirmation that the directors have exercised due diligence in the performance of their duties. For this reason these reports are referred to as due diligence studies."

Jan 1, 1996