Search Documents

By W. L. Stuewe

The Dominion Steel and Coal Corporation requires enormous quantities of bricks each year for its Sydney steel plant operations. Clay brick of all types are purchased, while silica brick is made in the Company's plant at Sydney. A description of this plant was given in a paper presented by H. B. Gillis and F. C. Morrison at the 1938 Annual General Meeting of the Institute. The rock used to make silica brick was for years obtained from a quarry at Leitches Creek, about eighteen miles from Sydney. Due to the gradual deterioration of this deposit, the Corporation was forced to look for other sources of supply. In 1945, the problem was presented to the Nova Scotia Department of Mines and, through the efforts of Dr. A. E. Cameron and Mr. J. P. Messervey, an examination was made of a silica-rock deposit some six miles northwest of Yarmouth, N.S. Preliminary samples proved satisfactory, and arrangements were made with the Department of Mines to ship to the steel plant at Sydney a fifty-ton car load for the purpose of further testing. Brick made from this sample shipment stood up very well in the furnaces. At the same time, two hundred and fifty tons of silica rock from a deposit at Lac Bouchette, Que., were purchased from the Industrial Silica Corporation, and brick made from this rock also was found suitable for our requirements. Comparative transportation costs, however, led to a decision to open the Yarmouth deposit. The silica rock, or quartzite, of this deposit outcrops at Chegoggin point along what is known as the 'Pembroke shore', a northerly trending section of the coast-line at the extreme southwest of the Province, in Yarmouth county. The country here is fairly flat, with elevation averaging about twenty feet above high tide, and is for the most part mantled by a growth of brush and some scrub trees, chiefly small fir. Bed-rock is generally concealed beneath three to four feet of clayey soil, but scattered outcrops of the quartzite indicated that a band of this rock, some 260 feet wide, extended inland in a northeasterly direction from Chegoggin point at least to Utleys lake, a distance of about three miles.

Jan 1, 1947

By T. Crivits, I. Bellemans, V. Cnockaert, K. Verbeken

It is well known that slag foaming can significantly complicate copper smelting processes. This is especially true for unpredictable events that generate large amounts of slag foam during a small period of time. These events are here referred to as eruptions and are typical for certain types of liquid bath furnaces such as modern top submerged lance (TSL) furnaces. A few authors already made the link between over- oxidation of the slag phase and slag foaming. In this work, the mechanism is studied in more detail and explained using the smelter chemistry and the behaviour of dynamic foam formation. Finally, the most influential parameters on the foaming behaviour of the process are presented. INTRODUCTION Copper remains one of the most important metals used in our modern society. In 2017, the annual amount of copper produced worldwide was about 23.5 million metric tons. This makes copper the third most produced metal in the world after steel and aluminium. The majority of this copper was produced by copper smelting, about 19 million metric tons, both from primary concentrate and secondary feed material as reported in ICSG’s World Copper Factbook 2018. In the past, copper smelting was mainly performed using Flash smelting, a technology developed before 1949 (Kojo, Jokilaakso & Hanniala, 2000). Nowadays, this type of smelter is being complemented by other smelter types such as ISASMELT and Ausmelt technologies. These are two types op smelter furnaces, based on the concept of a top submerged lance (TSL) furnace. These two technologies were both commercialized around 1990 (Arthur & Hunt, 2005). It is estimated by Wang et al. (2016) that at this time, both flash and TSL smelters contribute equally to the total amount of annually smelted copper. Flash smelting stays the most important technology for extracting copper from primary sources. TSL furnaces, on the other hand, are more suited than Flash smelters for the recovery of copper from secondary materials. This is because of the different ways that the feed material is inserted in both furnaces. In Flash smelters, the ore and fluxes needs to be fine and completely dry in order to be able to blow the mixture inside the burner area of the furnace. The feed material for TSL smelters show less constrains concerning humidity and particle size. The material is dropped from the top inside the molten bath. As a result, a more complex and flexible feed stream can be processed using TSL smelting (Wood, Hoang & Hughes, 2017). This feature will become more important in the future as primary copper sources gets more scarce and the need for a fully sustainable material cycle increases.

Jan 1, 2019

By W. R. Gunter

"INTRODUCTIONThis article documents the current non-metallic mineral s resources of Manitoba (Fig. I), and makes comparisons with currently producing deposits in North America and elsewhere in the world. Industrial minerals may lack the glamour of gold, silver or the base metals, but they contributed approximately 20070 to the value of Manitoba's raw materials, and even out-performed our petroleum industry, except during the oil boom of the early eighties (Fig. 2). Values per tonne of industrial commodities can be as high or higher than for base metal ores. Commodity prices (Canadian), listed in the February 1988 issue of Industrial Minerals magazine, are: talc $202.00 - $306.00, sillimanite $427.00; kaolin $69.00 - $270.00; garnet $175.00 - $250.00; and mica $405.00 - $540.00. The prices are converted to Canadian dollars using the prevailing exchange rates of February I, 1988. Some commodities are not sold by weight. Building stone, for example, is sold by the cubic foot. An average rough granite block, 4 ft by 4 ft by 8 ft, is worth approximately $2000 sitting on the quarry 1100r in southeastern Manitoba (Fig. 3).Thus, not all rocks that do not contain sulphides are worthless. Some may be extracted more profitably than either the base or precious-metal bearing varieties.Industrial Mineral CommoditiesThe commodities available in Manitoba are described in two categories: (1) those already in production that have additional development or expansion potential, and (2) those not in production logical information available at this time.Current Industrial Mineral ProductionThe commodities described herein are currently in commercial production in Manitoba (Fig. 4). These mineral products also have good market expansion potential provided additional geological and market research is conducted. The use of company names in reference to sundry products and locations should not be interpreted as specific endorsement by the Government of Manitoba. The numbers following the commodity name refer to Figure 1. that have good development potential on the basis of geo-"

Jan 1, 1989

By Guy Chevalier

QCM?s pellet plant, located in Port-Cartier, Quebec, produces up to 8.6 million tons of iron ore pellets annually. Four different types are produced: three for blast furnace operations and one for direct reduction furnaces. The paper presents the scientific approach that led to the installation of new process equipment to improve the reducibility of direct reduction pellets (DR pellet). The findings, the equipment selection and some post start-up modifications are presented. This low silica DR pellet is used in Midrex and HyL shaft furnaces. A good DR pellet has to meet strict chemical, physical and metallurgical specifications. An important metallurgical property is its ability to release oxygen when exposed to reducing gases. Considering that the market for DR pellets is expanding and being aware that reducibility is critical for our clients, a program to improve the latter was undertaken. Test work showed that one factor which has a negative effect on reducibility is the proportion of particles larger than 75 microns. Knowing that the best way to reduce the amount of coarse particles was to close our open grinding circuits, we began evaluating the most suitable classification equipment applicable to our process operations. We settled on hydro-classifiers based on their very sharp cut and their low operating costs. In light of the hydro-classifiers performance it was also decided to replace the hydro-cyclones of an already closed circuit.

May 1, 2003

By Roméo Roussin

"The yearly production from the Asbestos Hill pit is 1,550,000 tons of asbestos ore, with a yield varying between 18 and 20 % . The orebody was exposed at the top of a hill, and initial production started without having to remove any overburden. The projected ratio of barren rock to ore, based on the present orebody, was 2 to 1. However, as it was necessary to push back the upper benches, this ratio has changed to 3 to 1. The final pit will be 2,300 feet long by 1,000 feet at the longest and widest points. The final depth will be 680 ft. A pit slope stability study was carried out and an average wall angle of 60-70 degrees must be maintained. Preshearing of final pit limits will produce good wall stability. Permanent access ramps will be 60 ft wide, with an 8 % maximum grade. Geological conditions and the low rock temperature are the major causes of the operation's drilling and blasting problems."

Jan 1, 1976

By J. J. Hussey

"Abstract-The ""Brunswick Horizon"" an informally named ore-bearing unit near the top of the Nepisiguit Falls Formation in the Ordovician Tetagouche Group, hosts the Brunswick No. 6 and No. 12 base-metal mines, as well as the former Austin Brook iron mine, in northern New Brunswick. Detailed structural analysis of the No. 6 and No.12 mines led to the prediction that a massive­ sulfide deposit may have been repeated by F1 folding along the Brunswick Horizon. A subsequent drilling program discovered the new massive-sulfide North End Zone at a vertical depth of 1100 m, 1 km north of the No. 12 underground workings. By the end of 1990, Zn-Pb-rich massive sulfides had been delineated over a strike length of 200 m and a down-dip extent of 170 m. Rock units intersected in the North End Zone are generally thinner and vary somewhat from those at the Brunswick No. 12 mine. Thinning of the hanging wall rocks may be primary, may result from attenuation along F2 folds, or may represent truncation by a thrust fault. The newly discovered sulfide zone indicates that significant potential exists for the discovery of other deposits at previously unexplored depths.SOMMAIRE-Dans le nord-est du Nouveau-Brunswick ""l'horizon Brunswick"" est le nom usuel de la zone qui contient les mines de métaux de base Brunswick No. 6 et No. 12, ainsi que l'ancienne mine de fer Austin Brook, toutes situées sur le dessus de la Formation ""Nepisiguit Falls"" dans le Groupe Tetagouche d'âge Ordovicien. Une analyse détaillée de la structure des mines No. 6 et No. 12 à permis a van Staal de prédire qu'un gîte de sulfures massifs pourrait se répéter dû à une déformation F1, au nord de Brunswick No. 12. Suite à un programme de forage, la nouvelle zone de sulfures massifs appelée le ""North End Zone"", profonde de 1100 rn, et à une distance d'un km au nord des chantiers souterrains, fut découverte vers la fin de l'année 1990, les sulfures massifs riches en Zn-Pb ont été délimités sur une longueur de 200 rn et une hauteur de 170 rn le long du pendage. Les unités de roches intersectées dans le ""North End Zone"" sont généralement plus minces et sont quelque peu différentes de celles de la mine Brunswick No. 12. L'amin­ cissement des roches pourrait être primaire ou être le résultat de l'atténuation le long des plis F2, ou soit tronqué par une faille. La nouvelle découverte d'une zone de sulfures indique un potentiel énorme pour la découverte d'autres g ""tes à ces profondeurs inexplorées."

Jan 1, 1992

By B. Burke

Magnesium and its alloys are attractive materials for use in automotive and aerospace applications because of the low density and good mechanical properties. However, difficulty in forming magnesium and the limited number of available commercial alloys limit their use. The present paper reviews the efforts to improve the attractiveness of magnesium through non-traditional processing, and presents preliminary results of current work on producing magnesium alloys via powder metallurgy P/M. P/M can be used to alleviate the formability problem through near-net-shape processing, and also allows unique chemical compositions that can lead to new alloys with novel properties. The feasibility of producing magnesium powder metallurgy products utilizing the industrially dominant process of mixed powder blending, uniaxial die compaction and controlled atmosphere sintering was investigated. An alloy composition based on the commercial Mg alloy AZ31 (3% Al, 1% Zn) was used to facilitate comparison to similar wrought products. The optimal processing conditions (compaction pressure, sintering time and temperature, and quenching temperature) were found to maximize sintered density and mechanical properties.

Jan 1, 2007

By S. Banisi, A. R. Hasankhoei, Gh. Parsapour, A. R. Ghasemi

At the Gol-E-Gohar mining and industrial Company, a pelletizing plant, which includes two parallel dry closed grinding circuits and a pellet production circuit, produces 600 t/h. Each grinding circuit consists of a burner, a dry ball mill (6 m×13 m) and an air separator. Each ball mill consists of a 2 m-long dryer chamber and an 11 m-long grinding chamber. Iron ore concentrate is fed to the drying chamber to decrease its moisture from 2.5% to below 0.2%. The drying chamber consists of 56 flights in two rows. It was found when the feed moisture content decreased from 1.3 to 3.5%, the throughput decreased by 14% (40 t/h) indicating a low performance of the dryer. In order to improve the efficiency of the drying section, a scale down version of the dryer was constructed in a 1m diameter mill with a transparent end to make image analysis possible. It was found that because of the inappropriate veiling profile in the drying section, most of materials are not subjected to the hot gas tunnel. To overcome this problem, various flights with different geometries were physically tested and also simulated by the KMPCDEM © software. With the aim of arriving at a proper veiling profile which maximizes the particles contact with hot air, a new flight design was obtained and tested. The installation of the rectangular tooth type flights in one of the mills in the plant made the comparison of the old and new designs possible. The evaluation of the designs in a period of three months indicated 15 t/h increase in the throughput in the case of the new flight design.

Jan 1, 2016

By E. Dernedde

Industrial plants located in the province of Quebec, Canada, are subjected to large variations of the ambient air temperature, Building ventilation systems of these plants must have some flexibility in order to meet industrial hygiene standards (TLV for chemical substances, heat stress and cold stress) at any time of the year, The building ventilation of a bath treatment plant of an aluminium smelter in Quebec was examined under summer and winter conditions, Part of the plant has periodic emissions of hydrogen fluoride gas and heat from hot anode butts, CFD modeling was used to optimise the building ventilation of the bath treatment plant, The present study proposes a modified building ventilation system, which improves the internal environment, complies with industrial hygiene standards and also reduces heating costs by 20 % during winter.

Jan 1, 2005

The theory and practice of sampling of particulate material have been the focus of a continued attention on the part of the mining industry worldwide for almost a century now, because of its critical importance at all phases of a mining project, from exploration (bulk sampling, assaying) to production (grade control) and marketing (quality control). A powerful, complete theory was put together by P. Oy (1968 to i982), but its applications to gold ores have met with limited success to date, due to the inadequacy of its sampling variance and minimum sample mass determination formulae to the challenging case of gold ores. This paper presents a research project completed at Inco Exploration and Technical Services Inc., using a geostatistical approach, to shed light on the results of P.Gy's theory, and adapt them to the case of particulate gold ores. After a reminder of Gy's formulae and a simplified demonstration of the generic form of Gy's and more traditional formulae, an empirical approach, based on sampling experiments from four gold deposits, shows how Gy's formulae must be corrected to adjust to the case of gold ores. The generality of the results formula is then substantiated with a geostatistical analysis of the problem. A parameterized formula results, and indications are given on how to fit its parameters to experimental data. Application guidelines and charts to fit any case and budget are presented, along with a detailed practical example.

Jan 1, 1991

By Art Hamilton

The Zn-Pb-Cu-Ag ore deposits of the Boundary and N-5 zones near Bathurst, New Brunswick, occur in a polydeforrned volcano-sedimentary sequence that is part of the Ordovician Tetagouche Group. Massive and disseminated sulfides are hosted by an argillaceous to cherty sedimentary sequence that is stratigraphically Wlderlain by a siliceous fragmental unit and is overlain by a feldspar-rich crystal tuff and related tuffaceous rocks. The deposits have a low iron sulfide content relative to that of most stratabound sulfide deposits of the Bathurst-Newcastle mining district. The ore is commonly associated with chlorite- and talc-rich sediments. The N-5 deposit is considered to be the fault-displaced extension of the Boundary deposit. The Boundary deposit is estimated to contain 891 000 t grading 3.31% Pb, 7.96% Zn, 0.32% Cu and 44 g/t Ag; the estimate for the N-5 zone is 330 000 t grading 3.24% Pb, 7.15% Zn, 0.33% Cu, and 37 g/t Ag. The ore is processed at 1000 tpd at the Heath Steele mill.

Jan 1, 1992

By G. A. Moruzi

Two sulphide dust secondacy explosions have occurred in the mines of the SUdbury operations of Falconbridge Ltd. during the past 18 months. 'Ihe main similarity between the occurrences is that they both happened in vertical crater retreat blasthole stopes. A relatively high p:,v.tier factor was noted in both instances. other details are enumerated and examined, as well as some results of tests done by Noranda Research on company ore samples.

May 11, 1988

By J. R. Meyer, P. L. Dean

"The Department of Mines and Energy is at present investigating the dimension-stone potential of the Nain anorthosite complex. These rocks are known to host occurrences of labradorite, a semiprecious gemstone known for its beautiful play of colours (chatoyance). Test blocks that contain 5% to 18% chatoyant labradorite were extracted from three prospects south of Nain. These have been slabbed and polished for further evaluation.Second-grade labradorite stockpiled around the Grenfell quarry on Tabor Island is also being evaluated as a potential source of aggregate for use in terrazzo tiles, precast concrete and epoxy-backed wall panels.IntroductionThe Nain anorthosite complex consists of approximately 10000 km2 of anorthosite and related basic rocks , which are well exposed along the coast of Northern Labrador (Fig. 1) (Emslie et al., 1972). These rocks have been known for centuries to host deposits of gem-quality labradorite. The chatoyant nature (i.e. the play of colours or labradorescence) of this semiprecious feldspar has been utilized mostly in the making of jewelry and other polished, handcrafted products. In the early sixties, Brinex Limited (now Brinco Limited) attempted larger scale commercial exploitation of labradorite, including use 'as building stone and in polished precast concrete for facings on buildings' (Brummer, 1984). After six years of work, which included market studies, Brinex decided that, at that time, the demand did not warrant further production.In recent years, there has been a dramatic increase in the markets for dimension-stone. In the period from 1980 to 1985, the demand in the United States for granite, much of which is imported, has increased 1735070 (Marble Institute of America, 1986). The dimension-stone industry's remarkable growth rate has, in part, resulted from new technology that makes it easier and faster to quarry and cut stone. This has allowed natural storie to compete with other building materials. Now, it is not only used for exterior cladding and walkways, but also on interior walls and floors, and in home and office furnishings, such as countertops for kitchens and bathrooms, table and desk tops, stairways, window sills, and fireplaces."

Jan 1, 1988

By L. A. Homeniuk, R. J. McH. Clark

"The Maurice Bay deposit, the Stewart Island showing, the Fond-du-Lac deposit, the Middle Lake showing and the Nisto deposit are located on the North Rim of the Athabasca Basin. They are probably unconformity-related. These occurrences tend to be small. The Fond-du-Lac and Maurice Bay deposits are the largest and contain 450,000 kg and 650,000 kg of U10 8 respectively.Pitchblende is the main uranium mineral of all the occurrences, except at Middle Lake where autunite predominates. A II of the deposits are overlain and partially hosted by the Manitou Falls Formation of the Athabasca Group, except the Nisto deposit which is entirely within basement rocks, and the Maurice Bay deposit which is partially within the basement and overlying the Fair Point Formation of the Athabasca Group.The North Rim deposits are considered to be genetically similar to the other unconformity-type deposits found in northern Saskatchewan. It is suggested that a mechanical concentration of uranium may have occurred in heavy mineral beach sand type placers. The stability of the uranium minerals may have been enhanced by special local conditions. The fossil placers, after hydrothermal alteration and enrichment, would form the apparently ""rootless"" occurrences of uranium found totally within the sandstones above the unconformity.IntroductionAt least five deposits and showings and one train of mineralized glacial erratics of unknown provenance have been located on the North Rim of the Athabasca Basin from Maurice Bay in the west to Black Lake in the east. Distributed over a distance of 250 km, (Fig. l), they occur near the edge of the Basin, and are probably unconformity-related. The following have been identified from west to east (Fig. 2): The Maurice Bay deposit, the Stewart Island showing, the Isle Brochet train, the Fond-du-Lac deposit, the Middle Lake showing, and the Nisto deposit."

Jan 1, 1986

By Andrew Thrift

Overview ? Problem ? Research question ? Literature review ? Methodology ? Results ? Discussion and recommendations ? New developments Problem ? Increasingly higher expectations ? Inadequate consultation leads to conflict rather than collaboration ? Consultation practice is often weak on decision-making ? Influence of consultation on planning is Unclear Research question ? Are Structured Decision Processes (based on decision analysis) an effective methodology for involving stakeholders in consultative decisionmaking in the mining industry?

May 1, 2006

By J. R. Meyer, P. L. Dean

"The Department of Mines and Energy is at present investigating the dimension-stone potential of the Nain anorthosite complex. These rocks are known to host occurrences of labradorite, a semiprecious gemstone known for its beautiful play of colours (chatoyance). Test blocks that contain 5% to 18% chatoyant labradorite were extracted from three prospects south of Nain. These have been slabbed and polished for further evaluation.Second-grade labradorite stockpiled around the Grenfell quarry on Tabor Island is also being evaluated as a potential source of aggregate for use in terrazzo tiles, precast concrete and epoxy-backed wall panels.IntroductionThe Nain anorthosite complex consists of approximately 10000 km2 of anorthosite and related basic rocks , which are well exposed along the coast of Northern Labrador (Fig. 1) (Emslie et al., 1972). These rocks have been known for centuries to host deposits of gem-quality labradorite. The chatoyant nature (i.e. the play of colours or labradorescence) of this semiprecious feldspar has been utilized mostly in the making of jewelry and other polished, handcrafted products. In the early sixties, Brinex Limited (now Brinco Limited) attempted larger scale commercial exploitation of labradorite, including use 'as building stone and in polished precast concrete for facings on buildings' (Brummer, 1984). After six years of work, which included market studies, Brinex decided that, at that time, the demand did not warrant further production.In recent years, there has been a dramatic increase in the markets for dimension-stone. In the period from 1980 to 1985, the demand in the United States for granite, much of which is imported, has increased 1735070 (Marble Institute of America, 1986). The dimension-stone industry's remarkable growth rate has, in part, resulted from new technology that makes it easier and faster to quarry and cut stone. This has allowed natural storie to compete with other building materials. Now, it is not only used for exterior cladding and walkways, but also on interior walls and floors, and in home and office furnishings, such as countertops for kitchens and bathrooms, table and desk tops, stairways, window sills, and fireplaces."

Jan 1, 1988

By X. J. Guo, Q. K. Wang, S. P. Zhong

With depletion of traditional clean copper reserves and fast expansion of the global copper demand and smelting capacity in the past decade, more and more copper smelters have to treat copper concentrate with increasing content of complex arsenic-bearing minerals. Developing economically viable and environmentally reliable methods and approaches for arsenic control in copper smelting has become more critical for sustainable growth of the copper industry. This paper will report the recent effort of Zijin Mining Group Ltd. in developing processes for improving arsenic control and management in the Zijin Copper Smelter. The arsenic distribution and balance data for matte smelting, converting and refining operations in Zijin Copper Smelter is reviewed for understanding of the current challenges in arsenic control. The processes developed for treating the arsenic bearing waste acid bleed stream from the smelting-converting off-gases wet cleaning circuit and the arsenic sludge produced in the refining electrolyte purification circuit for arsenic disposal are discussed. INTRODUCTION With fast expansion of the global copper smelting capacity to meet the world copper demand and depletion of traditional clean copper reserves, more and more copper smelters have to treat copper concentrate with an increasing content of complex arsenic-bearing minerals. China is the world largest copper consumer and also has the largest copper smelting and refining capacity, but majority of its smelting capacity relies on supply of imported copper concentrate. In order to meet the increasing copper demand and ease the tight supply of clean copper concentrate, the Chinese copper industry has to look at the domestic opportunity of developing non-traditional copper resources, specifically those of lower grades, more complex mineralogy, and increasing level of deleterious elements especially arsenic and also process imported copper concentrate with increased arsenic content. Due to a significant and growing environmental issue associated with arsenic contamination, developing economically viable and environmentally reliable methods and approaches for arsenic management and control in unlocking the maximum value of such arsenic bearing copper resources has become more critical for sustainable growth of the industry.

Jan 1, 2019

By C S. Stevens

This paper describes the problems encountered and the steps taken to solve them in milling an ore containing relatively large amounts of pyrrhotite. A complex and greatly lengthened flotation circuit was required to recover the pyrrhotite. A very low pH had to be maintained in the cyanide circuit in order to get good recovery of the gold and maintain reasonable cyanide recovery. Introduction D ELNITE Mines Ltd., a gold mine situated about 5 miles by road south and east of the town of Timmins, Ontario, is serviced by two shafts. No. 2 shaft extends from surface to the 2875-ft. level, and No. 3 shaft, an internal winze, extends from the 2875-to the 5275-ft. level. No. 2 shaft was stopped at the 2875-ft. level because of a heavy band of chloritic schist which necessitated a drive to the north for 1000 feet, where No. 3 shaft was sunk. The latter bottomed in the schist at the 5275-ft. level. From the 2500 to the 2875-ft. level in No. 2 shaft, the ore was

Jan 1, 1965

By David C. Cook

The milling complex, situated just east of the Cassiar townsite, receives raw ore from the tramline and processes it into 105,000 tons per year of milled asbestos fibre. The ore is passed through a concentrator, where a barren rock fraction is removed. The concentrated ore, representing 70% of the feed, is dried, stored and then milled into nine separate fibre classifications. The finished product is packaged into 100-lb bags and loaded into trucks in one-ton units. New air-handling facilities were added in 1977to provide additional air for environmental control.

Jan 1, 1978

By Robert B. Parsons

"A t last the legal red tape which has tied up flow-through share financing has been cut. New rules effective for deals signed after 1986 simplify flow-through financing by removing the necessity f or cumbersome agency relationships. But there is no free lunch-the new rules require increased government reporting. And beware federal tax reform promises to have a good look at the new flow-through share rules. IntroductionFlow-through shares have always worked better in theory then reality as an effective financing tool. The concept is straightforward: a transfer of risks, tax deductions, and potential returns. But the mechanics of the old flow-through rules made the transfer of risk impractical to impossible by placing the responsibility for incurring Canadian exploration expense (CEE) on investors. The new rules are significantly more realistic, shifting that responsibility to the issuing corporation. However, every silver lining must have a few clouds around it. In the case of the new flow-through rules, the more obvious negatives are increased reporting requirements and reductions in CEE eligible for flow-through by amounts of assistance received. The new rules are effective for deals signed after 1986, however, so a few old-style deals are still around. Practical Difficulties with Old RulesThe old rules which applied to investments in flow-through shares were structured so as to make it the responsibility of the investor, rather than the issuing corporation, to perform the Canadian exploration expense for flow-through. Since most investors had neither the expertise nor the inclination to incur the CEE, this requirement necessitated the use of cumbersome arrangements whereby the investors would appoint an agent (usually the issuing corporation) to incur CEE on their behalf. Although the issuing corporation might consequently be the party which actually spends the flow-through share funds on CEE, the awkward legal structure of such an arrangement made the investor the ""principal"" incurring the CEE. As such, the requirements of the old rules were met and the investors could receive their flow-through share s."

Jan 1, 1987