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By M. Lindgren

"Hydrometallurgical processing involves process stages, like leaching, that create harsh environment for stainless steels. High acidity, the presence of chlorides and oxidizing ions combined with relatively high temperature create risk for both uniform and localized corrosion. Advanced electrochemical techniques were employed to study uniform and pitting corrosion of two stainless steel grades 316L and 2205. Results obtained with the linear polarization resistance technique combined with the harmonics distortion analysis, electrochemical noise and coupled multielectrode array systems are compared to the results of conventional electrochemical techniques and immersion tests.INTRODUCTIONHydrometallurgical processing has become favoured in metals production in recent years due to energy costs, leaner ore bodies and environmental factors. Because the hydrometallurgical processing route is flexible, various types of secondary raw materials, like flotation tailings, dusts, sludges and slimes can also be treated in addition to conventional mineral concentrates (Sarveswara Rao & Acharya, 2008).Hydrometallurgical processing relies on aqueous chemistry, usually acids, at temperatures around 100°C for the recovery of metals from ores, concentrates, recycled or residual materials. The processing route can typically be divided into three stages: leaching, solution concentration/purification and metal recovery. The processing environment is aggressive, especially in leaching. High acidity, relatively high temperature together with impurities, like chloride ions, place high demands on the corrosion resistance of construction materials. The dominant corrosion mechanism may be uniform corrosion or localized corrosion depending on the process conditions (Ekman & Torsner, 2010). This complicates the prediction of corrosion rates and, consequently, cost effective material selection.Traditional means to evaluate uniform corrosion resistance of stainless steels are immersion tests and the results are published in the form of iso-corrosion diagrams (Outokumpu Stainless, 2010). For the localized corrosion, namely pitting and crevice corrosion, immersion tests can be used but the duration of the test is rather long because an incubation period takes place prior to the occurrence of the actual localized corrosion damage. Electrochemical techniques, traditionally in the form of cyclic polarization scans, have been employed to assess the susceptibility of a material to pitting corrosion (Papavinasam, 2008). They cannot, however, give any indication of the pitting corrosion rate and lack potential for on-line measurements."

Jan 1, 2012

By Z. Yang, M. J. Collins, N. E. Tuffrey, R. J. Kalanchey, I. M. Masters

The high elevation of China Western Mining Company (WMC)' s Ganhe refinery, and the high iron content of concentrates produced by the WMC mines, were key factors in the selection of pressure leaching by WMC for their new zinc refinery. This paper describes the results of pressure leaching test work conducted by Sherritt in Fort Saskatchewan with a sample of WMC concentrate from Qinghai Province in China. Results from batch pressure leach tests and a four-day pilot plant campaign are reported. The pilot plant campaign included continuous operation of a two-stage pressure leach circuit, as well as neutralization and iron removal steps, resulting in the production of iron-free zinc sulphate solution. Greater than 98% zinc extraction was achieved in pressure leaching, while producing solution containing about 9 g/L H2SO4 and 2 g/L Fe. Following neutralization and iron removal, the solution contained about 170 g/L Zn and less than 10 mg/L Fe. Overall recovery of sulphur in the zinc concentrate feed to elemental sulphur byproduct was about 85%, while 75 to 80% of the indium in the feed was recoverable from the neutralization residue. The test results highlighted the technical and economic advantages offered by the Sherritt Zinc Pressure Leach Process and provided the required data for the engineering design.

Jan 1, 2008

By R. B. Fermor

"AbstractAttention is drawn to the ventilation problems arising from the use of diesel vehicles underground, especially in view of the fact that diesel fumes in combination with other pollutants may be more harmful than diesel fumes alone or the other pollutants alone.Means for minimizing the harmful effects of using diesels underground are listed, and the quantities of air' required in mines in which diesel-powered vehicles are used are discussed. Mines are classified in three categories on the basis of severity of ventilation problems, and statistics are given for these categories.Details of the various components contributing to total ventilation needs are given, and the ventilation needs of individual mines in the three categories are listed. A description is given of the principles according to which main ventilation coursing is planned and the selection and siting of main fans is discussed.General Considerations in the Use of Diesel-Engined Vehicles UndergroundIN ORDER to reduce physiological hazards, present and latent, to workers in mines in which extensive use is made of diesel equipment underground, it is important that mine ventilation systems reduce the concentrations of rock dust, diesel fumes and particulate matter as rapidly as possible to an acceptable level in all parts of the mine.There is some evidence that the long-term effects of a combination of the above pollutants are greater than those of anyone of them alone, which makes the problem even more pressing."

Jan 1, 1977

By J. M. Harrison

FIELD PARTIES of the Geological Survey of Canada have, in recent years, mapped several areas east and northeast of Flin Flon (9, 10, 12, 13, 14, 15, 118) (1). In all these areas the mineral deposits show a close geographical relation to faults although the immediate control of most of the known ore deposits appears to be folded structures in the rocks (8, 11, 18, 19). Air photographs and published geological maps were studied in order to ascertain whether or not the mineral deposits in the Flin Flon-Snow Lake mineral belt as a whole show any spatial relationship to faults. It was found that most of them do show a distinct geographical association with faults, or with topographic features that may be faults. It is further apparent on air photographs that a major lineament, for composite of lineaments, follows approximately the contact between gneisses and schists of the Kisseynew complex on the north, and Amisk volcanic rocks on the south. However, this Kisseynew lineament is not continuous and, especially in the eastern half of the district, it is exceedingly irregular in plan. Parts of this lineament have been mapped as faults (9, 10, 12, 14), other parts have been shown as stratigraphic contacts (1, 2, 21, 27), and still other parts have not been studied except by reconnaissance methods. It is suggested that the Kisseynew lineament may be due to a deformed fault that extends easterly from a point about 25 miles west-northwest of Flin Flon to a point at least 10 miles northeast of Wekusko lake and that the mineral deposits.

Jan 1, 1951

By L. J. Han, Y. J. Zong, S. Y. Wen, J. J. Wei

"Stress strain curves characteristics, deformation and strength properties, and failure process and characteristics of sandstone samples under different stress states were analyzed through triaxial compression tests carried on using TAW-2000 microcomputer control electro-hydraulic servo rock triaxial test system. The experimental results reveal that peak strength, residual strength, elasticity modulus and deformation modulus increase linearly with confining pressure, and failure models transform from fragile failure under low confining pressure to ductility failure under high confining pressure. Macroscopic failure forms of samples under uniaxial compression was split failure paralleling to the axis of samples, while macroscopic failure forms under uniaxial compression was shear failure, the shear failure angle of which decreased linearly with confining pressure. There were significant volume dilatation properties in the loading process of sandstone under different confining pressure, and then based on acoustic emission damage and volumetric dilatation damage the damage evolution properties of samples were analyzed, and damage constitutive model were established, realizing the real-time quantitative evaluation of samples damage state in loading process. INTRODUCTIONDamage is a phenomenon that micro defects in material under monotonic loading or reloading will lead to progressive decrease of the cohesion and damage of volume units. Many scholars at home and abroad have carried out systematic researchers on damage evolution characteristics and constitutive model of rock, and have achieved a series of remarkable results in this field. Lu Y.D. (2004) studied the complete stress-strain curve’s characteristics of marble under triaxial compression, and established the bilinear elastic-linear strain softening-residual ideal plastic damage constitutive model. Ren J.X. (2001) studied the damage evolution laws of coal and rock mass by computerized tomography triaxial loading system, realizing the quantitative evaluation of damage state. Zhang Z.L. (2011) studied the deformation and failure mechanism of strong weathered sandstone by triaxial compression test, and analyzed the damage evolution processes and established the damage evolution equations based on the density method. Li X.J. (2012) studied the microscopic damage characteristics of siltstone under triaxial compression by scanning electron microscope and digital image technology, and analyzed the statistical distribution characteristics of cracks azimuth angle, length, width. Zhou J.W. (2012) studied the strength, deformation and fracture damage characteristics of sandstone by uniaxial cyclic loading and unloading tests, and defined damage variable based on linear damage mechanics theory and acoustic emission (AE). Cao W.G. (2006) established a new damage model and a statistical damage constitutive model of rock under specific confining pressure according to the force of damaged part and undamaged part in rock on the base of statistical damage theory. Li S.C. (2014) studied the damage evolution characteristics in the whole uniaxial compression process of sandstone by electrical resistivity and AE, and proposed a status qualitative criterion for rock damage."

Jan 1, 2015

By Steven Hart

In September 2009, Newmont began the commissioning of a 3 stage crushing and milling circuit at its Boddington Gold Operation in Western Australia. The Boddington ore has been recognized as one of the hardest and most abrasive ores treated to date and this played a pivotal role in the selection of crushing and HPGR technology for this operation as opposed to the more conventional SABC circuit. This paper will examine the scale up from laboratory to pilot plant and full scale operation of the crushing circuit. There have been many challenges to overcome in the first 18 months of operation; however, the HPGRs have in general met design expectations and performance is expected to improve further with ongoing design changes

Jan 1, 2012

By Tadeusz W. Wlodek

THE known phenomenon that a test-piece of ferro-magnetic steel is magnetic after it has been broken in tension indicates that, while it is being loaded, the steel acquires magnetic properties. In the present investigation of the influence of the stress on the magnetic flux, repeated pulsating stresses of increasing amplitude, varying from zero to the maximum tensile value, i.e., pull-pull loading, were employed. The specimens were prepared from two types of carbon steel and two of alloy steel. The magnitude of the magnetic flux was determined indirectly. The voltage and mode of variation of the electromotive force induced in a coil surrounding the stressed steel specimen were measured as an indication of the varying magnetic flux within the specimen. Curves representing the electromotive force induced by the varying magnetic flux show that as the tensile load increased so also the magnetic flux increased, with a corresponding increase in measured e.m.f. At a certain stress there is a sharp bend in the voltage curve (point Win the diagram, Figure 5); this critical stress corresponds very closely with the yield stress (0.2 per cent permanent strain). Beyond this point, slight increases in the stress produce large increases in the voltage. The wave form of the e.m.f. was registered on an oscillograph. Analysis of the curves so obtained demonstrated the necessity of continuing these experiments, in order to determine the type of induced wave form associated with various types and amplitudes of stresses. In these experiments, the shape of the stress wave was sinusoidal, although the shape of the induced e.m.f. was sinusoidal only up to a certain load and became more and more complex above this load.

Jan 1, 1944

By Qing-hua Tian, Li-then Cheng, Xue-yi Guo

In order to recycle valuable metals from silver separated residue, a novel method using alkaline smelting at low temperature was proposed. The main factors affecting the main metal recovery such as the smelting temperature, smelting time, liquid-to-solid ratio and alkali addition were investigated comprehensively. The behavior of the main metal elements, such as Pb, Sn, Sb and Bi in silver separated residue was also discussed. The results indicated that amphoteric metals such as Pb and Sn can be smelted into the melt, while other metal elements, such as Sb and Bi were left in the residue.

Jan 1, 2011

By Jorge Lema Patino

"The purpose of this paper is to determine the best techno-economic alternative for the treatment of tin ores, when comparing the various mining and metallurgical methods of preconcentration, concentration, volatilization (fuming) and up to the final stage of selling to the smelter. The study of the influence of the different parameters of cost, recovery and quoted prices has motivated the paper, which aims at determining the best process of ore treatment in terms of its techno-economic feasibility.Method of WorkOn the basis of head grades of 0.5, 0.75 and 1.0% tin, the following alternative methods of treatment are possible:1. Mining-Concentration-Smelting.2. Mining-Preconcentration-Fuming-Smelting.3. Mining-Concentration-Separation, with direct smelting and fuming/smelting of the two fractions produced.The calculations were carried out on the basis of existing information and publications concerning the various experimental recoveries in the operating mills of COMIBOL. In the case of concentrates containing less than 10% or more than 40% tin, extrapolation was required.The final grade of the tin concentrates and the gross weight of the concentrate were calculated on the basis of the estimated recovery curves. The costs of the preconcentration and the concentration stage s were determined per gross metric ton of material treated.The calculation of the cost of the smelting stage is similar for all the alternatives, the royalties and smelting charge varying with the grade of the final concentrate. In the fuming stage, a uniform recovery of 90% was taken in all cases so as to obtain a final concentrate grade of 65% tin, regardless of the head grade of the feed material.For the separation stage, the following considerations apply:a) Separation can be carried out by gravity separation or flotation methods.b) The cost of separation varies depending on the system used.c) The distribution of tin in the two fractions is 100% at this stage. In other words, there is no loss of tin during separation."

Jan 1, 1982

By R. B. Sudderth, A. Quiroz G., M. Torres M., C. Salgado Q., J. Fernández O., H. Bravo P., M. Torres B.

SNF FloMin, Inc. has introduced a complete line of extractants for recovery of various metals. Among them are the CuPRO MEX™ Brand of copper extractants that are based on the well- known 2- hydroxy 5-nonylsalicylaldoxime and 2-hydroxy acetophenoneoxime. This paper presents the laboratory and pilot plant trial results for SNF FloMin’s CuPRO MEX™ 3302 reagent, the equivalent to the wellknown ACORGA® M5640 extractant, and the composition of these reagents are described. Some examples of SNF FloMin’s CuPRO-Sim™ Advanced solvent extraction simulator are presented.

Jan 1, 2014

By J. E. Danoczi

Shore Gold Inc. (Shore) is presently designing a diamond processing plant for the Star and the Orion South kimberlite deposits in the Fort à la Corne (FalC) area in central Saskatchewan. The first step in the plant is diamond liberation and occurs in the comminution section. Diamond liberation is the process of breaking up the kimberlite rock, as gently as possible so as not to damage the diamonds. Autogenous grinding mills (AG mills) use a combination of impact crushing, abrasion and attrition to break up the kimberlite. The forces that occur during the actions of abrasion and attrition cause the kimberlites to break up preferentially along lines of weaknesses which offers a ?diamond friendly? method of comminution. Hard competent kimberlite is commonly found in the diatreme zone as well as the root zone of the volcanic pipe and is the source of kimberlite for most of the Southern African diamond mines. Softer kimberlite is typically found in and around the crater area of a volcanic pipe and it is this kimberlite that makes up the majority of kimberlite for both the Star and Orion South deposits. These softer kimberlites can be readily broken up using abrasion and attrition imparted by AG mills. In order for Shore to benefit from the softer kimberlite found in the Star - Orion South diamond project, two large (10.97 m diameter x 7.10 m long) AG mills were designed for the comminution section based on extensive test work and simulations by Metso Minerals (Metso).

Jan 1, 2012

By J. E. Nesset, F. Rosenblum, J. A. Finch, R. Payant

ABSTRACT Under certain conditions of moisture and oxygen, sulphides can spontaneously self-heat. We tested a hypothesis that galvanic interaction between some sulphides can promote self-heating. Galvanic interaction is controlled by the rest potential difference between sulphides and particle size. A series of binary sulphide mixtures was tested. Individual sulphides and mixtures with low rest potential difference did not self-heat, but mixtures of high rest potential difference did. When testing pyrite-sphalerite mixtures, self-heating increased inversely with particle size, with the fineness of the pyrite governing self-heating, indicating the rate-limiting step is the reduction reaction. The results support the hypothesis that galvanic interaction contributes to sulphide self-heating. A possible mechanism based on hydrogen sulphide as an intermediate product is proposed. The understanding gained will be of interest to those involved in storage, shipping, and disposal of sulphides.

Jan 1, 2012

By R. Jacobs, R. E. L. Pobe

The Moab Khotsong Metallurgical Complex comprises a gold recovery circuit (Noligwa Gold Plant) and a uranium recovery circuit (South Uranium Plant). The metallurgical complex employs the reverse leach technology for the recovery of uranium; specifically, uranium extraction prior to gold using acid leaching processing. The inherent uranium species in the ore are uraninite, coffinite and brannerite. The slurry that has been subjected to the uranium leach is further subjected to solid-liquid separation to separate the uranium in solution through counter-current decantation and the solids (solids carrying all the gold), which are repulped and returned to the gold plant for gold processing. The uranium leaching process is critical to the uranium playing a pivotal role as a value adding by-product to the gold operation. The benefit of adopting this reverse leach process, for improved gold recovery, is that it exposes gold particles occluded within the uranium matrices and avails them for cyanidation. However, the drive for operational efficiency in uranium extraction must be weighed against the incremental operating cost against the backdrop of depressed spot uranium market prices. Over the years, efforts were directed at maintaining the benefit of extracting uranium to enhance gold recovery and simultaneously, optimizing the operating cost model for the uranium operation to remain relevant to the gold operation. The aim of this paper and the corresponding presentation is to give account of the uranium processing optimization journey embarked on over the years; namely, the operational trade-offs made in the process of ensuring that uranium continues to add value to the gold operation. These challenges were faced while striking a fine balance between processing cost and operational efficiencies against the prevailing depressed uranium spot market prices. Mineralogical- and laboratory tests conducted form the support basis for the results and observations articulated in the paper.

Jan 1, 2020

By D. Campbell Mackenzie

THIS paper is submitted primarily to put on record the results of a number of experiments carried out at the Wingdam mine of Consolidated Gold Alluvials of B.C., Ltd., with the object of establishing a reliable method of concentration of 'wash' and a maximum recovery of gold from the concentrate. It will be generally admitted that, during the last two decades, a tremendous amount of research work has been carried out, both by private companies and Government departments, with a view to improving the technique of the recovery of gold .from quartz veins or lodes. So thorough have been these investigations that milling practice at a modern quartz gold mine is almost an exact science, carried out with meticulous accuracy. In placer mining, on the other hand, very little departure from old traditional methods can be noted, with the exception perhaps of the more modern gold dredges. This may be due to the fact that the concentration of placer gravels, up to a certain point, is comparatively easy. Only a simple equipment of sluice box and riffies seems necessary where the gold is coarse and the gravel free from clay. In the early days of placer mining, when claims were rich and fairly 5hallow, nobody worried very much about fine gold; and, if clay was present, an enlarged dump box was constructed in which the gravel was subjected to a rather desultory puddling. That large quantities of gold are lost in normal placer practice is generally admitted. Some 26 years ago, I had inspectorial charge of many bucket dredges on the Ovens river, in Australia. Occasionally it was necessary for a dredge to work through its own tailing to reach a new section, and almost without exception enough gold was recovered from these tailings to defray the total cost of moving the dredge. Since those days, the technique of gold recovery in dredging has been considerably improved and it is still receiving close attention. Outside of dredge mining, most placer operations, deep or otherwise, are as they were-notorious gold losers, paying little attention to the recovery of fine gold and taking an absurd amount of time over each clean-up. In the Cariboo district of British Columbia, the alluvial gold is usual y associated with varying quantities of black sand (magnetic) and grey sand (non-magnetic); and it can be taken as axiomatic that, if you save all the black sand and grey sand, you save practically all the gold. It is on this hypothesis that we have carried out our research work and brought our recovery system up to its present highly satisfactory standard.

Jan 1, 1937

By P. J. Lunder, R. C. Pakalnis

This paper presents the results of research that has been undertaken in order to develop an improved method of determining the strength of hard-rock mine pillars. Pillars are found in various shapes and sizes in all underground mining operations. Prudent engineering design requires that if pillars are to perform as desired, both the pillar strength and the pillar stress must be determined. A detailed pillar stability study has been combined with an extensive database of published pillar case histories (178)resulting in a new “hybrid” pillar strength formula, “The Confinement Formula”, that utilizes classic strength of rock methods combined with empirical methods. “The Confinement Formula” utilizes a “mine pillar friction term” calculated from the average minor/major stress ratio with-in the pillar core. Statistically, the new formula provides better results at predicting pillar strength for the combined database than the best empirically ft pillar methods that currently exist. “The Confinement Formula” allows for the determination of the strength of mine pillars with an increased level of confidence over previously applied methods.

Jan 1, 1997

By J. M. Cummings

CONSIPERABLE information on the industrial or non-metallic mineral resources of British Columbia has been published. For a general resume of the subject, reference may be made to a paper presented by A. M. Richmond before the Annual General Meeting of the Institute in 1935 (1). To avoid duplication, the present paper is confined to a discussion of the existing industrial mineral industry of the Province and of the factors governing its present and future development. British Columbia's mineral production in 1936 had a value approximately 15 per cent of that for the whole of Canada. Preliminary estimates for 1937 indicate that this proportion has been maintained, although the totals have increased about 25 per cent. The following table presents comparative figures, for the year 1936, illustrating the relative importance of the major divisions of the mineral industry in British Columbia and in Canada as a whole.

Jan 1, 1938

By James E. Wennen

The through-put and energy efficiency of an autogenous (AG) grinding mill are adversely affected by variability in rock size and rock competency. This applies to both fully autogenous and semi-autogenous (SAG) grinding circuits. In this paper we focus on an approach to overcome the problem of inconsistent mill through-put related to variability in mill feed size and rock competency. The focus is on ores containing hard, competent rock. This approach consists of preparing feed to an autogenous mill that contains 20% coarse media rock and 80% of material crushed to pass 37 mm. Results of pilot-scale testing for two iron-ores will be presented to show that a 10% to 12% reduction in unit energy consumption is possible with prepared feed, compared with feeding the mill with conventional primary crusher discharge.

Jan 1, 2012

By G. De Gregoriis, G. E. da Mota, H. P. Dias, J. E. M. Blasques

In recent years, like many other smelters around the world, Albras has been increasing line current. The necessary adjustments to the work practices and process variables need to be made on all potlines, which in this case means on 960 cells at the same time. It was a challenging task to adjust the process parameters to the new amperage. In July 2003 potlines 2, 3 and 4 were running at 1 73 kA and the goal at that time was to reach 180 kA. Preliminary trials with 180 kA were performed on a group of 10 boosted cells on potline 3 in order to investigate possible operational problems. It was decided to increase the amperage in three steps accompanied by continual evaluation of the state of the process. In July 2004 the target of 180 kA was achieved with good operational results. This paper presents the overall results, the parameter adjustments made during the amperage increase in the booster group and how the increase was implemented on the other potlines.

Jan 1, 2006

By John Shirokoff, Ladan Khaksar

"Cyclic polarization technique and also potentiodynamic measurements were applied to study corrosion behavior of 13% chromium steels in chloride containing environment. Potentiodynamic measurements were performed at 25 and 75 °C with 0, 10 and 20 g/l NaCl in 0.01 M hydrochloric acid solution. At the same time, the significant pitting parameters such as corrosion potential (Ecorr), pitting potential (Epit), protection potential (Epro) and passive current (Ipass) of cyclic polarization curves with various NaCl concentration were analyzed and compared to describe the corrosion behavior of 13% chromium stainless steel. Surface measurement techniques such as SEM and EDS were used for morphology and analysis of corrosion products. The results showed that both temperature and Cl- concentration had significant effects on corrosion behavior of 13% chromium stainless steel in acidic solution.INTRODUCTION Of all the corrosion resistant alloys (CRA) used in oil and gas developments, martensitic stainless steels (MSS) are some of the most common ones these days. These steels not only have the advantages of normal steels: high strength, cost-effective, easy to manufacture, available in a wide variety of product forms, but they also have good CO2 corrosion resistance at higher temperatures as a result of their 11% minimum chromium content. One of the most common types of MSS used in the oil and gas industry is 13% chromium steel. NACE and API standards both reference several different varieties of 13% chromium steels for use in oil and gas projects(“Corrosion Resistant High Cr Steel for Oil and Gas Wells,” 2013). All types of 13% chromium steels have about 12 to 14% chromium and other minor alloying additions, and can be placed into two general groups: conventional and modified. Conventional 13% Cr steels (13Cr) are those most common in oil and gas, some of which are CA6NM (UNS J91150), AISI 410(UNS S41000), and AISI 420 (UNS S42000). These alloys have excellent corrosion resistance when compared to carbon steels up to about 300°F (150°C) and are used for a variety of wellhead, tubular, and downhole components however they have very limited resistance to cracking in H2S (Vallourec Group, 2015). Modified 13% Cr (M13Cr) steels came from the need for increased corrosion resistance at higher temperatures, increased H2S cracking resistance, and increased yield strength above 85 ksi (586 Mpa) primarily for tubular goods and other downhole equipment. These features were developed by taking a conventional 13Cr steel and adding nickel (Ni), molybdenum (Mo), copper (Cu), and other alloying elements. M13Cr provides better corrosion resistance than 13Cr up to about 350°F (177°C), yield strengths up to 110 ksi (758 Mpa), and also improved H2S cracking resistance(“Corrosion Resistant High Cr Steel for Oil and Gas Wells,” 2013)."

Jan 1, 2017

By Robert B. Parsons

"The junior mining company's bank account is depleted, but there are high hopes for the company's property. Where to get the necessary development funds is a common problem facing many juniors.This month, Tax Notes discusses briefly the principal income tax implications of several alternative development plans that are typically available to the junior mining company and its shareholders.IntroductionAt some point in time, many junior exploration companies face a common dilemma-a promising prospect has been proven up and is read y for further development, but alas, the company is flat broke! In this situation, a number of alternatives is available to the company, including the possibility of ""going it alone"" by raising capital through a public offering, or by striking a deal with a ""major"" or some other substantial investor.This article focuses on the latter possibility, and discusses in broad term s the main income tax implications of various arrangements between a typical junior exploration company and a larger public company for the development of a particular property. It will be appreciated that a discussion of other important considerations, such as those pertaining to securities exchange regulation s and company law requirements, is beyond the scope of this article.Jointly Owned CorporationPerhaps the simplest way of dealing with the problem of financing the development of a property is to sell the property outright, pocket the proceeds, and run! Clearly, though, this alternative is unacceptable to most prospectors and developers, who are predictably reluctant to completely relinquish their equity interest in a promising property. An additional strike against such an outright sale is that the sale could trigger an income tax liability. Generally speaking, in the case of a simple sale of a mineral property, for income tax purposes the proceeds are applied to reduce the taxpayer' s unclaimed balance of Canadian development expense (""CDE""), with any unapplied excess being brought into income and taxed at ordinary corporate tax rates."

Jan 1, 1983