http___=cmj-de-02012011

c a n a d a ’ s f i r s t m i n i n g p u b l i c a t i o n

CanadianMining JournalCanadianMining JournalFebruary/March 2011www.canadianminingjournal.comwww.canadianminingjournal.com

OLD GOLDShineS AGAin

Miners dig deeper at historic Red Lake site

Dewatering gives hope to reopening Ontario gold mine

And

February/March 2011

www.canadianminingjournal.com

http://issuu.com/action/page?page=12


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c a n a d a ’ s f i r s t m i n i n g p u b l i c a t i o n

CANADIANMining JournalCANADIANMining JournalFebruary/March 2011www.canadianminingjournal.comwww.canadianminingjournal.com

OLD GOLDSHINES AGAIN

Miners dig deeper at historic Red Lake Site

Dewatering gives hope to reopening Ontario Mine

And

February/March 2011

For More InformationPleasevisitwww.canadianminingjournal.comforregularupdatesonwhat'shappeningwithCanadianminingcompaniesandtheirpersonnelbothhereandabroad.Adigitalversionofthemagazineisalsoavailableatwww.digital.canadianminingjournal.com


12C o n t e n t s

CanadianCanadianMining JournalDepartments

Next Month Canadian Mining Journal looks at Canada’s Oil Sands.

ABOUT THE COVERMinerssecureboltsandsafetymeshatGoldcorp’sRedLakeMine.PhotoprovidedbyGoldcorp.

18 Paved To GoldDetourGold’sDetourLakeProjectisa$1.2-Billiongoldminingjobthatismovingclosertoproductionthanksinparttothesite’sinfrastructure,includinghydroelectricpowerandapavedroadwaydirectlylinkedtotheproperty.

22 Murgor GoldVictoriaGoldMinesEastTimminsandMurgorResourcesInc.arenowpumpingouta150-m-long,125-m-wide,and70-m-deeppitattheGoldenArrowgoldminesitenearTimminsinpreparationforfuturedevelopment.

27 Barrick GoldBarrickGold’stwoHemlomines,theDavidBellandWilliamsinNorthernOntario,servesastwoverygoodexamplesofwhereownersareusingmoderntechnologyinanefforttohelppreservetheenvironment.

29 Staff ReportXstrata’snewProcessSupportPlantinSudburyfeaturesanumberoftestinglabsthathelpsreducethewaitingtimefororeresultsfromdaystohours.

32 OMA ReportOntarioMiningAssociationpresentsanoverviewofminingactivityintheprovince.

46 Looking Down on New BusinessAerialphotographyisbecominganincreasinglypopularexplorationtool.

48 Under ControlUndergroundequipmentandkeepingtrackofitthroughfleetmanagement.

54 DEWATERING:ASpecialSectionfeaturingsomeoftheproductsandservicesavailabletohelpkeepminesdrierduringproductionandcareandmaintenance.

12cover storyMINING IN ONTARIOGoldcorp’sRedLakeGoldMineisaperfectexampletoshowhowacombinationofmod-erntechnologyandcontinuingexplorationcanresultindevelopingolderpropertiesintoproducingminesonceagain.

5 EditorialThismonthEditorRussNoblecallsouttoallassociationsaffiliatedinanywaywiththeCanadianminingindus-trytogettogetherandcomeupwithanationalcampaigntorecruityoungpeopleintotheminingindustrybecausemanypeopleareretiringandtheindustryisinneedofworkers.

6 Mining MattersCanadianMiningJournal’spopular“MiningMatters”pagetakesaquicklookatsomeofthenamesandeventsthataremakingheadlinesacrossCanadaandaroundtheworld.

8 Competitive EdgeCMJ’sForeignCorrespondentJaquelinaJimenasaysthatinternationalanalystsaremonitoringandrankingcompanyperformancesbut,sheasks,aretheseCSRrankingsreallyusefultools?

10 In My Mine(d)GuestcolumnistVanZorbas,apartnerwithDeloitteCanada’sHumanCapitalpractice,takesalookattheminingindustry’sagingworkforceandhowthescarcityoftalentthreatensprofitability.

63 New ProductsAlookatsomeoftheproductsthatareavailabletohelpmineownersandoperatorsimproveproductivityandincreaseprofits.

66 Exploration OpportunitiesNormanChampigny,aSeniorConsultantwithPricewaterhouseCoopers(PwC)looksatcuttingcostswithoutcuttingcornersandhowacompany’slong-termgrowthstrategydependsonit.
















http://www.canadianminingjournal.com

http://www.digital.canadianminingjournal.com


A L W A Y S P R O D U C T I V E

Arctic cold to Australian heat, the Hitachi EX8000-6 is proving to be the hardest-working, most dependable mining excavator available today. 52.3 cu. yd./40 m3 bucket. Twin QSK60C Cummins engines. Excellent numbers: Low operating and ownership costs per ton, 30-second passes, 5,500 tons per hour, average 115 gallons of fuel per hour*.

Each Hitachi sold is backed throughout the world with excellent product support. You can count on a local dealer who is well-versed in the assembly, maintenance, and troubleshooting of your hydraulic excavator, and is backed by the engineering expertise, parts inventory, and strength of Hitachi, one of the world’s largest companies.

*Based on customer observations. Each operator and mine application will have varying results.

www.hitachimining.com

EX8000-King of the Pit.indd 1 12/8/10 5:20:54 PM


Canadian Business Press Indexed by Canadian Business Periodicals Index

CanadianCanadian Editorial


February/March2011,Vol.132—No.212ConcordePlace,Toronto,ON.M3C4J2

Tel.(416)442-5600Fax(416)510-5138www.canadianminingjournal.com

Editor RussellB.Noble

[email protected]

Field EditorMarilynScales613832-9087

[email protected]

Foreign Correspondent JaquelinaJimena

[email protected] Correspondent

[email protected]

Art Direction MarkRyan

Production Manager Print Production Manager

SteveHofmann PhyllisWrightCirculation Manager

CindiHolder416442-5600,ext.3544

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RobertSeagraves416510-6891

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Sales Western Canada, Western

U.S.A. & Australia

Ron Sanderson Specialized Media Associates

403 293-4138 [email protected]

Inside Sales MichaelWinter416510-6824

[email protected] Publisher DougDonnelly

President Vice-president BruceCreighton AlexPapanou

Established 1882Canadian Mining Journalprovidesarticlesandinformationofpracticalusetothosewhoworkinthetechnical,administrativeandsupervisoryaspectsofexploration,miningandprocessingintheCanadianmineralexplorationandminingindustry.Canadian Mining Journal ISSN1923-3418(Online)ISSN0008-4492(Print)ispublished9timesayearbyBIGMagazinesLP,adiv.ofGlacierBIGHoldingsCompanyLtd.BIGislocatedat12ConcordePlace,Suite800,Toronto,ON, M3C 4J2.Phone(416)442-5600.Legaldeposit:NationalLibrary,Ottawa.PrintedinCanada.Allrightsreserved.Thecontentsofthismagazineareprotectedbycopyrightandmaybeusedonlyforyourpersonalnon-commercialpurposes.Allotherrightsarereservedandcommercialuseisprohibited.Tomakeuseofanyofthismaterialyoumustfirstobtainthepermissionoftheownerofthecopyright.ForfurtherinformationpleasecontactRussellNobleat416-510-6742.Subscriptions—Canada:$47.95peryear;$76.95fortwoyears.USA:US$60.95peryear.Foreign:US$72.95peryear.Singlecopies:Canada$10;USAandforeign:US$10.CanadiansubscribersmustaddGSTandProvincialtaxwherenecessary.GSTregistration#809744071RT001.Fromtimetotimewemakeoursubscriptionlistavailabletoselectcompaniesandorganizationswhoseproductorservicemayinterestyou.Ifyoudonotwishyourcontactinformationtobemadeavailable,pleasecontactusviaoneofthefollowingmethods:Phone:1-800-668-2374;Fax:416-442-2191;E-mail:[email protected];Mailto:PrivacyOfficer,BusinessInformationGroup,12ConcordePlace,Suite800,Toronto,ON,M3C4J2.PublicationsMailAgreement#40069240.PAPRegistrationNo.11000.Weacknowl-edgethefinancialsupportoftheGovernmentofCanadathroughthePublicationAssistanceProgramtowardsourmailingcosts.ReturnundeliverableCanadianaddressesto:CirculationDept.,CanadianMiningJournal,12ConcordePlace,Suite800,Toronto,Ontario,M3C4J2.E-mail:[email protected] Post: Publications Mail Agreement PM40069240. Please forward Forms 29B and 67B to 12 Concorde Place, Suite 800, Toronto, ON M3C 4J2.Canadian Mining Journal, USPS 752-250.USofficeofpublication:2424NiagaraFallsBlvd,NiagaraFalls,NY14304-0357.PeriodicalsPostagePaidatNiagaraFalls,NY.USpostmaster:SendaddresschangestoCanadianMiningJournal,POBox1118,NiagaraFallsNY14304.We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities. PAP Registration No. 11000

Mining Journal

By Russell Noble

A call to all Mining Associations

Most industry associations aren’tworth a damn and that unfortu-natelyholdstrueformanyofthose

involved with mining here in Canada.They’regoodatcollectingduesandputtingonAnnualMeetingsfortheirfraternitybutaside from those events, little is donethroughout the year for the good of theirmembers at large and, more importantly,theindustrytheyserveandrepresent.

To support my opinion, when was thelasttimeyouheardofanyassociationaffili-ated with mining make headlines beyondtheir own Newsletter telling about all thegoodtheyaredoingonbehalfoftheminingindustryasawhole?

Surewehearaboutmeetingswithvari-ousgovernmentofficialsorotherregionaldignitaries where “position papers” aregiven on the price of electricity or theimportanceofwater,airandtherestoftheenvironment,butwhataboutconcernsonabroader,nationalscaleinvolvingminingpeopleandthegrowingscarcityofthem?

What are the “mining associations”doingtoaddressthisproblem?

Infairness,certainassociationsdorec-ognizethattheindustryisrunningoutofpeople; the AMEBC*, MANS*, OMA*,PDAC*andMAC* for examples,butonthewholethereisnoreal“nationalvoice”screamingoutthattheCanadianminingindustryisgrowingdesperateforworkers.

AsVanZorbasofDeloitteCanadapointsoutonPage10ofthisissue,thescarcityoftal-entisthreateningtheprofitabilityoftheindus-try and with more than 60,000 Canadianminingpeopleabouttoretireby2020thesitu-ationisonlygoingtogetworse.Zorbasfiguresthe industry will need an additional labourforceof100,000peopletokeepitgoing.

SoIaskyouagain,whataretheasso-ciationsaffiliatedwithmininginCanadadoingtohelpfillthesevacancies?

Inmyopinion,notenoughandIthinkit’s time they put their collective headstogetherandcomeupwithanationalad

campaigntorecruitminersfromthehighschools,colleges,andeventheuniversitiesacrossthecountry.

Anationaltelevisionadcampaignwouldprobably work best but as we all know, itwouldbeexpensive,butIalsothinkworthit,becausetheindustrycan’taffordtofinditselfwithoutpeopleinafewyears.Forthesakeofafewhundredthousanddollarsnow,theminingindustrywillsavemillionslater.

Withoutbeingasked,here’swhat I see intermsofatelevisioncommercialorinaprint-adformattohelpbringnewbloodintomining.

Two things that capture almost everyyoung person’s attention are money andexcitement, so with that understanding,here’smyideaforanadthatmayappealtofutureminers.

Pictureanadortelevisioncommercialfeaturingayoungperson,genderdoesn’tmatter,operatingahugepieceof expen-sive equipment and moving massiveamounts of rock that’s just been blastedfromthesideofamountain.

Pretty exciting stuff; but carrying thecommercialacoupleofstepsfurther,pic-turethatsamepersongettingdownfromthemachineattheendoftheday,walkingto a trailer to punch out, stowing theirbootsanddustyoverallsinalocker,thenwalking out the other side of that sametrailer intoawaitingMercedesorBMWanddrivingoffintothesunset.

MusicfromClintEastwood’s“AFistfulofDollars”wouldbeinthebackgroundofthe commercial as the words “MiningPays Your Way to a Good Future,” orsomethingalongthoselinesappears.

Inanyevent,somethinghastobedonetoattractthenextgenerationtotheminingindustry,andit’suptotheassociationsthatrelyonittogettheiractstogetherandcomeup with a truly national recruiting cam-paign. It’s not only for the good of theindustry, it’s for the future of associationstoo because without people, “associationsaren’tworthadamn!” CMJ

*Association of Mineral Exploration (British Columbia), *Mining Association of Nova Scotia, * Ontario Mining Association, *Prospectors and Developers Association of Canada, and *Mining Association of Canada.

A L W A Y S P R O D U C T I V E

Arctic cold to Australian heat, the Hitachi EX8000-6 is proving to be the hardest-working, most dependable mining excavator available today. 52.3 cu. yd./40 m3 bucket. Twin QSK60C Cummins engines. Excellent numbers: Low operating and ownership costs per ton, 30-second passes, 5,500 tons per hour, average 115 gallons of fuel per hour*.

Each Hitachi sold is backed throughout the world with excellent product support. You can count on a local dealer who is well-versed in the assembly, maintenance, and troubleshooting of your hydraulic excavator, and is backed by the engineering expertise, parts inventory, and strength of Hitachi, one of the world’s largest companies.

*Based on customer observations. Each operator and mine application will have varying results.


EX8000-King of the Pit.indd 1 12/8/10 5:20:54 PM


mailto:[email protected]










6 |CanadianMiningJournal•February/March2011 www.canadianminingjournal.com

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Miningvolume 132 Feb/Mar 2011Matters Signing of Prairie Creek Mine agreement

Canadian Zinc CorpandtheNahanni Butte Dene BandhavejustsignedanImpactBenefitAgreementwithrespect tothedevel-opment and operation ofthe Prairie Creek Mine,located within the tradi-tional territory of theNBDB in the NorthwestTerritories.

The agreement pro-vides a framework such that training,employment and business contracts aremadeavailabletoNahannitohelpensuremaximizationofbenefits fromopportu-nitiesarisingfromtheminingproject.

ThePrairieCreekMine,azinc/lead/sil-verproperty,islocatedabout90kmtothe

northwest of the community of NahanniButteandtherouteoftheaccessroadcon-nectingthepropertytotheLiardHighwaypasseswithin5kmofthecommunity.

Wheninoperation,itisexpectedthePrairie Creek Mine will provide about220full-timejobs.

Where are the New Mines?One of the main questions that came out of the recent Mineral Exploration RoundUp in Vancouver was “Where are the new mines?”

Keynote speaker Don Lindsay, president and CEO of Teck Resources, was the man who asked the question because as he said: “The single most important thing for producers today is to find four or five long-lived mines that can sustain their companies for the next generation.”

New discoveries, Lindsay said, aren’t keeping pace with demand, making it tough for senior miners to replace depleted resources or expand their resource base.

Even though Canadian companies are lead-ing the quest for the next generation of mines and represent half of the world’s exploration spending, exploration budgets are still the first slashed in tough times.

In 2009, for example, spending fell 42% from an all-time high of $14.4 billion in 2008 but on an encouraging note, global spend-ing rebounded to more than $12 billion in 2010 and by early indications, exploration spending in 2011 will continue to rise.

And that’s good because the future depends on finding “new” mines.

MLA Kevin Menicoche, Government of NWT, reads the Impact Benefit Agreement as various other officials, including Canadian Zinc’s Chairman, CEO, and President John Kearney (second from left, front row) listen.

Thousands attend annual Mineral Exploration ConferenceThe Association of Mineral Exploration British Columbia(AMEBC)onceagainputon an outstanding conference this year asmore than 7000 delegates from around theworldgatheredinVancouverrecentlyfortheShowandTechnicalConference.

The four-day event, held at the WestinBayshore and Convention Centre, attractedvisitors and exhibitors from as far away asAustraliatoheartalksonthetheme“Exploring today for tomorrow’s resources”andtovisitthehundredsofboothsdisplayingproducts,ser-vices,and“hotproperties”acrossCanadaandaroundtheworld.

View showing some of the thousands of delegates and a few of the hundreds of booths at this year’s “Exploration RoundUp” in Vancouver.

2011 & Beyond

www.smsequip.com


2011 & Beyond

www.dumasmining.com


Are “Corporate Social Responsibility” rankings really useful tools?

Some days ago, Corporate Knights,the magazine for clean capitalism,announceditsseventhannualGlobal

100listofthemostsustainablelargecor-porationsintheworld.

The Global 100 includes companiesfrom22countries,encompassingallsec-torsoftheeconomy,withcollectiveannu-alsalesinexcessof$US3trillion,andfivemillionemployees.

Amongthe22countries, Japan led theway with 19 Global 100 companies (14more than theyhad in2010).TheUnitedStatesfollowedwith13(onemorethanin2010).TheUK(11companies,downfrom21 in 2010) and Canada (8 companies,downfrom9in2010)tookthirdandfourthplacerespectively.Roundingoutthetoptenscoringcountrieswiththemostlistedwere:Australia (six), France (five), Switzerland(five), Denmark (four), Finland (four),whileBrazil,Germany,India,NorwayandSpaineachregisteredthreeGlobal100list-ed.Sixty-sixpercentofthe2010companiesremainedonthelistin2011.

Withincreasingfrequency,analystsaremonitoring,evaluating,andrankingcom-pany performance. Thus, CorporateSocialResponsibility(CSR)lists–rangingfromCorporateKnight’s“Global100” toEthisphere Institute’s “Most EthicalCompanies”andCorporateResponsibilitymagazine’s“100BestCorporateCitizens”,as well as Dow Jones “SustainabilityIndex” and its Canadian peers such as“FTSE4GOOD” or “Jantzi Social Index”(JSI)—constituteastampofapproval.

Certainly, environmental performanceisalltherageintoday’sinvestmentenviron-ment.Nearlyoneoutofeveryninedollars

of professionally managed assets in theUnitedStates–valuedatanestimated$2.71trillion – has been invested in companiesthatperformwellinCSRrankings.

Companystakeholders,frominvestorsto customers to employees to regulators,watch the 100 Best Corporate CitizensList closely, and are using it now morethanevertomakeimportantdecisions.Asa consequence, making the list is worthmillions or even billions in increasedshareholderandbrandvalue.

However,therearesomevoicesagainstrankings. Some specialists have said thattheseCSRlistsarejustnonsense.Itisalmostimpossible to compare Campbell’s SoupwithHess.Theysaythewhole ideais likecomparingahorsewithabutterfly.Also,itis true that some rankings are suspiciouswhen ranked companies financially sup-port theorganizationrankingthem,espe-ciallywithoutdisclosingsuchinformation.Inthiscase,inputfromexternalstakehold-ers would make the methodology muchmorerobustandcredible.

A number of blogs and discussionboardsacrosstheweb,aswellasagrowingnumberofspecialists,arefrustratedbyCSRindustry lists, and with the manner inwhich they are constructed. Some even

perceive a pattern of favoritism. Forinstance, some Corporate Responsibilitymagazinesmakemoney fromthecompa-niesthatitratesinitsannuallist(throughsponsorship, registration fees for events,andbrandlicensingarrangements).This,inanyindustry,wouldbeseenasaconflictofinterest,butintherealmofCSRandbusi-nessethicsitwouldbepurelyhypocritical.

So back to the question: Are CSRrankings really useful tools? Certainly,sustainability indices can be useful tools

for recognizing company achievements,and for separating out the leaders fromthe laggards based on past performance.They become dangerous when investorstake them at face value, assuming that aportfolio that tracks these indexes faceslittleenvironmentalandsocialriskand/orisprotectedfromfutureembarrassment.

Sustainability is a work in progress.Investorswhoseektoinvestinsustainablecompaniesneed tobepartners indevel-oping and promoting sustainable corpo-rate practices. The real investors´ socialresponsibility is to encourage all compa-nies,leadersandlaggardstoinnovateandfindwaystooperatewithanever-smallerimpactontheplanet,andagreatercontri-butiontohumanwell-being. CMJ

Jaquelina Jimena is Canadian Mining Journal’s Foreign Correspondent. She is a journalist

based in South America who specializes in worldwide economic issues and is also an

advisor in Corporate Social Responsibility (CSR) in Mendoza, Argentina. She can be reached at

[email protected]

By Jaquelina Jimena

CompetitiveEdge

“ With increasing frequency, analysts are monitoring, evaluating, and rank-ing company performance.”

DEDICATIONAND DRIVEIN A PICTURE?

WHO SAYS YOU CAN’T CAPTURE

Be Proud of your work. Be Barrick.

Whether a geologist, engineer, surveyor or haul-truck driver, our employees are the backbone of our enduring success. And to best demonstrate how much we value their personal goals and fulfillment, we have assembled one of the most dedicated teams driven to support the aspirations of everyone we employ. Join us and share in our success.

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BAR Can Mine Journal Feb.indd 1 2/4/11 10:31:09 AM



DEDICATIONAND DRIVEIN A PICTURE?

WHO SAYS YOU CAN’T CAPTURE

Be Proud of your work. Be Barrick.

Whether a geologist, engineer, surveyor or haul-truck driver, our employees are the backbone of our enduring success. And to best demonstrate how much we value their personal goals and fulfillment, we have assembled one of the most dedicated teams driven to support the aspirations of everyone we employ. Join us and share in our success.

BeBarrick.com

BAR Can Mine Journal Feb.indd 1 2/4/11 10:31:09 AM

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InMyMine(d)


Van Zorbas is a partner in Deloitte Canada’s Human Capital practice. He can be reached at

403-503-1460 and [email protected] Van Zorbas

Scarcity of talent threatens profitability

Aging workforces. Looming waves ofretirement. An inability to attract newtalenttothefield.Inrecentyears,demo-graphic trends like these have plaguedthe mining industry—and the situationonlypromisestogetworse.Accordingtothe Mining Industry Human ResourcesCouncil(MIHRC),by2020,over60,000Canadian mining employees will retire.Tomaintaincurrentlevelsofproduction,that means the industry will need anadditional labour force of 100,000 peo-ple1. And that doesn’t take into accountthe higher levels of production likelyrequired to meet escalating globaldemandforcommodities.

Already, labour shortages are creatinguntenablesituationsforminingcompanies.In western Australia, for instance, somecompanies fly employees thousands ofmiles to their workplace. Aside from thefinancial and logistical challenges thisentails, this heightened level of workermobilityputsbargainingpowersquarelyinthe hands of skilled talent. Critically, thiscomesatatimewhentheminingindustryisexperiencingaserioustalentgap.Duetolow participation in the industry over thepastseveraldecades,manyminingcompa-nieslackexperiencedmiddlemanagers.

TherecentDeloittereport,“Empoweryourtalent:Buildingahigh-performanceorganization,” details approaches for sur-vivingthistalentgap.Herearesomestrat-egies to consider as you structure yourowntalentmanagementprogram.

1. Enhance leadership agilityFormanyyears, leadershipplanningcen-tredaroundidentifyingoptimalsuccessorsfor key corporate roles. While successionplanningisessential,itisbynomeansthe

ending point. To retain coveted middlemanagement and attract strong talentfrom other industries, mining companiesmustbuildagileleaderscapableofadapt-ing tochangingconditions.This involvesidentifying promising leaders across theorganization,andwellbeyondthetopfewhundred roles, and investing in them bymovingthemtodifferentteamsandroleswithin the business. It includes turningleadership development into a strategicpriority that merits senior executive timeand attention. And it challenges miningcompanies to bring the human resourcesteam to the table when setting organiza-tionalstrategyandpolicy.

For many mining companies, theseactions represent a departure from busi-ness as usual. However, by focusing ontangible tactics like job rotations, specialprojects,cross-trainingandglobalmobili-tytransfers,youcandomorethanbuildasuperior leadership bench. You may alsobeabletobetterretainthemiddlemanag-erscapableofdrivingthemostsignificantchangeforyourorganization.

2. Increase employee engagementWhileenhancingleadershipskillsisessen-tial,itcannotbeappliedinisolation.Miningcompaniesalsoneedtogetmorecreativeinthe strategies theyadopt to retainexistingtalentbykeepingthemengaged.Mostorga-nizationsrecognizethatthisinvolvesmeet-ing their employees’ professional and per-sonalrequirements.Theyareoftensimplyunsureonhowtodeliveronthatobjective.

While there are no hard-and-fast rulesfor ensuring employee engagement, bestpracticesdoexist.Forinstance,companiesthatuseacorporate latticetoguidecareerpaths (rather than a corporate ladder)

encouragegreaterflexibilitybyempoweringstaffto“dialup”or“dialdown”theircareersbased on their personal goals. By lettingpeople align those goals with customizedworkarrangements, suchas flexiblehoursor travel opportunities, you can begin toimproveretentionofthebestandbrightest.Similarly, leadersshouldbeencouragedtoshare skilled staff with the organization atlargeasawaytopromoteinternaltransfersinsteadoflosingpeopletocompetitors.

3. Collaborate more effectivelyAthirdpillaroftalentmanagementistheneedtoleveragedifferentstylesofcollab-orationasameanstoenhanceproductiv-ity. Given the diversity of business unitsacrossatypicalminingcompany,execut-ing on complex projects is frequentlycumbersome. To get hundreds or eventhousands of people to work together asone—instead of as many—executivesmust understand the different collabora-tion styles that tend to drive differentorganizational goals, choose the modelthat best aligns with their culture andenter outsourcing or offshoring arrange-mentsthatallowthemtoscaleupordownasmarketdemandsshift.

Closing the talent gapAlthoughminingcompaniesfaceasignifi-cant talent shortage, strategies exist forboth attracting new talent and furtherdevelopingthetalentalreadyonboard.Byanalyzing your workforce supply patternsand future talent needs, you can identifypotentialgapsandtakestepstoclosethemrightaway.Thistypeofworkforceplanningis critical for any organization eager todrive business, strengthen decision-mak-ingandenergizethebottomline. CMJ

1 Mining Industry Human Resources Council, 2010. Accessed at www.mininghrforecasts.ca/en/labourmarketinformation/Key_Finding.asp on October 13, 2010.


http://www.mininghrforecasts.ca/en/labourmarketinformation/Key_Finding.asp


www.vale.com/future

We’re a global mining company — not just because we operate around the world, using innovative technology to produce metals and minerals that are part of almost everything you use — but also because we care about the world.

We conserve thousands of square miles of forest around the globe, recycle 76% of the water we use, produce fertilizers to help increase food production, use clean, renewable energy that keeps the air pure, and embrace diversity by respecting people equally everywhere.

The earth gives us what we need to evolve for the future.We feel it’s important to return the favour.

Vale. There is no future without mining.And there can be no mining without caring about the future.

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|MininginOntario


Deep GOLDGoing After

Mature mine means fresh new wealthBy Field Editor Marilyn Scales, Photos courtesy of Goldcorp.

TheRedLakeGoldCamphas long been synony-mous with bonanzagrades. For more than

60 years the Campbell mine pro-vided half-ounce head grades,making it the world’s richest goldmine. The focus has shifted todeeper deposits at the Red Lake(formerlyDickenson)minethatisdeliveringevenbettergrades.

Developedinthelate1940s,thetwo properties operated indepen-dentlybeforeGoldcorpwasabletoacquirebothandrationalizeopera-tions.GoldcorpacquiredDickensonMines in 1994 and Placer Dome’sCampbell mine in 2006. This year,Red Lake Gold Mines (RLGM) isexpectingtoproduce675,000ozofgold. At today’s gold prices and acash cost in the neighbourhood of$300perounce,itisoneofthemostprofitablegoldminesintheworld.

In only four years, RLGM hasmergedtheoperationsandworkforcesofboth mines, absorbed Dynatec’s contractworkersontothepayroll,builtamodernfly-in/outcamp, launchedahomebuild-ing program in both the Red Lake andBalmertown communities, and appliedfor and received certification of theInternational Cyanide ManagementCode. In May 2010, RLGM poured its

20-millionth oz of gold. The company’strackrecordisimpressive.

Historically the Red Lake camp hasproduced 27 million oz of gold, 75% ofthat from properties owned by RLGM.Chris Osiowy, manager of exploration,explained how a gold-bearing corridorcanbetracedfromtheRedLakeminetothe Campbell mine and westward to the

former Cochenour-Williams, GoldEagleandMcKenzieIslandmines.

Today’sgeologistsarefindinggoldin places unheard of 60 years ago.Formerminesexploitednear-surfacequartzcarbonateveins.Nowtheyaretesting mineralized zones associatedwithacentralultramaficunit that ishighlycarbonatizedandaltered.Thesearchhastakenthemtoadepthof2,500metres.TheRedLakeComplexand Campbell Complex were inter-connectedbyadriftatdepthatmidyear.ExplorationdrillingoftheHighGrade (HG) zone began in earnestandwillcontinueintonextyeartest-ing itatdepthandinanareaprevi-ously untested. Drill results to datehavebeenexcellent.

“There’s lots of potential,” saidOsiowy. Enough potential forRLGMtomounta$30-milliondrill-ing program. Last year’s programintersected 1.1 metres (true width)of3,706.9g/tAuonthe50leveland

34.7metresof136.3g/tonthe47level.

The Red Lake mineTheRedLakeGoldMineisaccessedviatheNo.1shafttothe23level,andthenewBalmershaftfromsurfacetothe43level.TheBalmer(No.3)shaftwascompletedin2007aspartoftheHGzonedevelopment.It is equipped with two 13.5-t skips to


February/March2011•CanadianMiningJournal|13 February/March2011•CanadianMiningJournal|13

hoist 1,100 t/d ore including 500 tonnesfromtheHGzone.

The active mining areas are foundbetween the 30 and 46 levels. The pre-dominant mining method is longhole.Approximately65%oftheorecomesfromthis method. A further 20% is minedusing cut and fill techniques. The final15%isdevelopmentore.

Next year’s mining plan includessomeoftheoldupperRedLakework-ings. Anticipated grades are in the6.9-to13.7-g/trange.

“Therearestillsomehalf-ounce stopes up there,”saidPeterGula,assis-tant undergroundsuperintendent.

The HG zone isfound between the30 and 57 (2,500metre) levels and isstill open at depth. Itis responsible forbreathingnewlifeintothe Red Lake mine.Butminingofthiszoneat depth requires ameans of de-stressingthearea.Overtheyears,innovative de-stressingmining methods havebeendevelopedtominehighly stressed ground

atdepth,pillarsanddifficultgeometries.Asanexample,a

de-stress curtain of 80,000tonnes had to be excavated in

wasterocktode-stressanareacon-tainingmorethan200,000ozofgold.

RLGMiscontinuallyrefiningitsmin-ingtechniquesandsequencingtoallow

safeoreextractionofthedeepHGzoneminingareas.

Managerofmining,MarcLauziersaid,“Only20%oftheorecomesfromtheHGzone, but that ore contains 56% of therecoverablegold.”

Mining will eventually reach 2,500metresormore,and theworkingscangetverywarm.Thatmakesventilationachal-lenge. Intake air is pushed into the minedowntheshafts,throughtheolderworkings

(tocoolitinthesummer)and pulled out through five

exhaust raises. The air goingdowntheshafts isheatedinthe

winter to prevent freezing of theshaftinfrastructure.Theuseofven-

tilation-on-demandisbeingconsid-ered. Electric underground vehicles

arecurrentlybeingusedandnewtech-nologicaldevelopmentsshouldallowfortheexpansionoftheelectricfleet.

The current mining fleet includessmallTamrockandCaterpillarload-haul-dumpers, single-boom jumbos and 17-ttrucks. All LHDs are capable of remotecontrol. Larger Caterpillar LHDs, a 30-tCat truck and a two-boom jumbo areused for ramp development. There arealso service vehicles including bolters,shotcrete trucks, scissor lifts and Kubotapersonnelcarriers.

There is no crusher underground.Instead,rockbreakersandgrizzliesensurethatoreisnomorethan300mmbeforeitisskipped.Jawandconecrushersonthesurfacereducethesizetoapproximately9mmaheadofthegrindingcircuit.

The Campbell mineTheCampbellmineisservicedbyapairof shafts. The Campbell shaft reaches1,315 metres below surface. The Reidshaft,150metrestothewest,extendstoadepth of 1,820 metres. Approximately

The Balmer shaft (centre) at the Red Lake mine was com-

pleted in 2007 to facilitate min-ing the High Grade zone.

Red Lake Gold Mines poured its 20-millionth ounce of gold in 2010.


|MininginOntario

1,850 tonnes of ore is hoisted daily.Althoughnarrowveinandremnantmin-ingispracticedinoldsills,thepredomi-nantminingmethodislonghole.

Above 27 level, the mine is equippedwithtrackedhaulageoneachlevelaswellas

rubber-tireddieselequipment.Thisequip-mentiscaptive.Alllevelsbelow27levelareaccessed by ramp. Mining is mechanizedforgreaterflexibilityandproductivity.

The Red Lake millTheRedLakemillrecoversatleast96%ofthegold intheorefromthemineof thesamename.Ithastheadvantagesofbeingcompact, secure and only 10 years old.Theoriginalmillwasdismantledandthecurrent one commissioned in 2000 tocoincidewiththeexpansionofmining.

Fineoreisreducedto70%passing200meshina3.5x5-mballmillinclosedcir-cuitwithacyclone.Thecycloneoverflowispumped to a pack of cyclones in closedcircuitwithaMetsoVertimillthatproducesagrindof90%passing200mesh.Boththeballmill andVertimillhaveKnelsoncon-centrators in line that produce a productthatispassedacrossagravitytable.

Overflowfromthesecondarycyclonesisthickenedandleachedbeforetheeight-tankcarbon-in-pulpcircuit.Thecarbonisloaded to between 8,500 and 10,000 g/t

andstrippedatintervalswhenthedesiredloading is achieved. Gold is recoveredfromsolutioninapairofelectrowinningcellsoperatinginseries.

Sludgefromtheelectrowinningcircuitand concentrate from the gravity tableprovidefeedfor therefinery.About45%ofthegoldintheoreisrecoveredbygrav-ityandafurther45%intheCIPcircuit.

The refinery smelter and the mouldsare enclosed in a large ventilation hoodduring the pour. This is a precaution tocollectandremoveanyarsenicgasthatiscreatedduringthemeltingprocess.Eachpourof4,000oz(roughly215kg)createsdoré bars that are between 800 and 925fine. The bars are shipped to JohnsonMattheyforfurtherrefining.

Treatmentof the tailings fromtheCIPcircuit involves detoxification using IncoSO2technology.Theyarethenconditionedandtreatedinarougher-scavenger-cleanerflotationcircuit.Finaltailsaredrawnfromthe underflow of the flotation circuit andeitherplacedintheRedLaketailingspondorusedtomakepastefillforthemine.

Flotation concentrate is thickened andfiltered. It can be either stockpiled or sentdirectlytotheautoclaveattheCampbellmill.

The Campbell millTheCampbellmillshowsitsage.Partsoftheoriginalbuilding fromthe late1940scan be seen. It has expanded over theyears,butnotinanymannerthatfollowsthe flowsheet from beginning to end.Nonetheless, it does have an importantparttoplayinproducingRLGMgold.

Run-of-mineisreducedto20mminathree-stagecrushingcircuitconsistingofajawand twoconecrushers.The fineorepassesthroughanopencircuit2.7x3.8-metrerodmillanda3.8x4.7-mballmillinclosedcircuitwithcyclonestoproduceagrindof85%passing200mesh.Grinding

CSR starts at home with support for CNIBGoldcorp takes Corporate Social Responsibility (CSR) very seriously, as much so in northern Ontario as it does in foreign lands. It makes a yearly dona-tion to CNIB to support its Ontario Medical Mobile Eye Care Unit, better known as CNIB Eye Van, a trav-elling clinic that offers critical eye care services in remote areas. The $25,000 donation from Goldcorp

may not sound like much, but it helped save the vi-sion of Ron Joensen, a metallurgical technician and long-time Goldcorp employee.

Six or seven years ago, Joensen’s eye exam in the Eye Van revealed he had glaucoma. This pro-gressive disease robs the sufferer first of peripheral vision and eventually of all sight if left untreated.

Standard treatment involves eye drops on a daily basis. In certain cases, treatment with a specialized laser is an option. Both the laser and drops are used to lower pressure within the eye which is a major risk factor for glaucoma. The laser treatment Jo-ensen received in the Eye Van allowed him to return to work an hour later.

Taking a closer look at drill core from what promises to be a high-grade gold producer for

decades to come.

Water testing at the wetlands at the Campbell tailings management area.



circuit underflow is pumped to twoKnelsonconcentratorsthenpassedoverashakingtabletorecoverthefreegold.

Thegrindingcircuitoverflowispumpedtoaflotationcircuitconsistingofroughers,cleaners and scavengers. At this point theflotationconcentrateiscombinedwiththatfrom the Red Lake mill, and the resultingstreamistreatedbypressureoxidationinanautoclave.The15.25x2.7-metreautoclavewent operational in 1991 to replace theoriginalroastercircuit.Theautoclaveprod-uctpassesthroughacarbon-in-leachcircuitbefore joining the flotation tailings in theconventionalcyanideleachingtanks.

Theleachedpulpenterstheheadofasix-tankCIPcircuit,followedbyacarbonstrippingcircuitandelectrowinning.Thestripping vessel is operated once a day,andthegoldloadingvariesfrom6,000to10,000g/t.Barrenpulpisfirstdetoxified,then thickened and used as paste fill orpipedtothetailingsmanagementarea.

Sincethemerger,theCampbellrefineryhasbeen inactive.Allof theshakingtableandelectrowinningproductsaresenttothe

Red Lake mill for smelting. The strippingcircuitatRedLakealsohasthecapacitytohandleloadedcarbonfromCampbell.

Neither mill operates with a lot ofhigh-end technology, explained millsuperintendent Ian Glazier. “The auto-clave at the Campbell complex has pro-grammablelogiccontrolandadistributedcontrolsystem.ThereisonlyaPLCattheRedLakemill.Theoperatoristheexpert.”

Fortunately,RLGMhasanexperiencedandknowledgeableworkforce.

TheCampbellmillalsohaswhatmaybe a first in the gold mining industry, ahydrogen cyanide detector based on anon-visible laserreflector.Similarequip-mentiscommonintheoilandgasindus-try, but the gold industry typically reliesonsnifferstodetectHCNgas,asRLGMdoesintheRedLakemill.

Environmental successRLGMoperatesseparatetailingsareasatthe Campbell and Red Lake complexes,whichistheresultofoperatingtwomills.Opportunities in the future may allow

for these to be combined into a larger,centralsystem.

One of the most rewarding environ-mental successes at RLGM has been therehabilitation of Balmer Lake. Afterdecadesoftailingsdepositionandeffluentdischargefrompreviousoperators,itwasdeclareddeadin1988.

“We committed to cleaning up oureffluent,andthe260-hectare lakeisnowreturning to acceptable conditions,” saidenvironment manager Dave Gelderland.“TheBalmerLakewatershedhasbecomeaviableecosystem.”

Water treatment through the 1990scleaned up Balmer Lake enough that 20walleyeswerereleasedintoitin1999asatest population. They were radio trackedfor over a year, and successfully repro-duced. A decade later northern pikemigrated upstream and have been re-establishing themselves as a top predatorin the lake. By 2010 the fish populationwasdynamic.BalmerLakeisnowreturn-ingtoahealthyandproductiveecosystem.

RLGMhasalsobeendevelopingwetland

The laser treatment was applied to half of each eye and is very effective. The pressure should stay down for some time. Should it ever go up again, the same laser procedure can be applied to the other half of each eye

“CNIB has made a huge difference over the last few years,” Joensen told CMJ. “It’s a win-win situ-ation, especially for the First Nations now that there is screening for diabetes.”

The latest initiative of the CNIB Eye Van, screen-ing and education for diabetes, was initiated this

year with the Northern Diabetes Health Network. Blindness is common in cases of untreated diabetes and frequently afflicts aboriginal elders. With early detection and treatment, blindness is no longer an inevitable part of growing old.

The concept of a travelling eye clinic was devel-oped in the winter of 1971-72 jointly by CNIB and the Ontario Medical Association (Section on Oph-thalmology). It is a 14.5-metre custom-built trailer pulled by a semi. It contains an office, waiting area,

vision screening area and an examination room. It is equipped with a reinforced floor and corner stabiliz-ers as well as a hydraulic levelling system so that delicate eye procedures can be safely performed. It is staffed by a rotating team of 26 visiting ophthal-mologists and two CNIB ophthalmic assistants. Ev-ery year it treks 6,000 km across northern Ontario and treats an average of 5,000 people who would otherwise not have access to eye care.

More information is posted at www.CNIB.ca/EyeVan

A LHD rig and mine truck work in tandem during ramp development.

Just steps from the super’s office is the Red Lake mill.

http://www.CNIB.ca/EyeVan


|DepartmentHere

areas that passively remove ammonia, pro-ducedbytheSO2-airprocess,fromthedetox-ifiedtailingseffluentandblastingagents.ThewetlandattheCampbellComplexwascre-atedin1998,andthewetlandattheRedLakeComplexhasjustrecentlycompleted.

Reopening the Cochenour mineGoldcorp has a bright future in the RedLakeGoldCamp.In2008itacquiredGold Eagle Mines,whichmadeanewdiscoveryin2005,theBruceChanneldepositbelowthehistoricCochenourmineinthetownofthesamename.Thedepositisgeologicallysimilar to the Red Lake, Campbell andCochenour-Williamsmine(over1millionozofgoldfrom1939to1971).

Production is to begin in 2014, butbeforethathappens,thereismuchdevel-opmentworktodo.

TheCochenourshaftwillbeenlarged,

refurbished and fitted with a new head-frameandhoistarrangement.Thatwillbesomethingofanaccomplishmentatasiteonlyonesmallcityblockinsizeandwithresidentialpropertiessurroundingit.

When CMJ visited at the end ofNovember,theprojectwastwodaysintothe continuous slip forming of a 60-mconcreteheadframe.Thesitebuzzedwithtruckslargeandsmall,temporaryofficesandthebusy-nessofdevelopment.

The shaft will be approximately 1,065metresdeepandfittedwithacage,two13-tskips and a counterweight. Developmentwillbecarriedoutonthe2050,2200,2600and3200levels.Theshallowoldworkingswillbere-explored,andthedeeperminer-alization tested both from surface andunderground.Wastewillbehoistedatarateof 1,050 t/d; however, the shaft has thecapacitytohoist2,000t/d.

Cochenourresidentswillbesparedthenoise and congestion of a full mining,crushing and processing facility. Therewill be no mill at Cochenour. Instead,workisalreadyunderwayona5-km,4.25x 4.90-m high-speed underground haul-agedriftthatwillconnectonthe54levelwiththeRedLakemine.OrefromBruceChannelwillbehoisteduptheReidshaftfortreatmentattheCampbellmill.

More importantly, this drift will allowexplorationover5kmofuntestedgroundinoneof theworld’srichestgolddistricts.Thetunnel is inprogressandisnowover20%completed.Thefirstofthedrillingsta-tionsiscomplete,withconsiderabledrillingplannedoverthenextseveralyears.

WithGoldcorp’shardworkinthearea,theRedLakeGoldCampmaybeproduc-inghalf-ouncegradeswellintothefuture,justasithasforthepast60years. CMJ

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|MininginOntario

When moving mountains matters, trust Tsubaki.

www.tsubaki.ca

About 45% of the gold recovered in the Red Lake mill is collected at the Diester shaking table.

Dore bars from the Red Lake mill are between 800 and 925 fine gold.



www.iem.ca

When moving mountains matters, trust Tsubaki.

www.tsubaki.ca

http://www.tsubaki.ca


|$1.2-BillionProject

SituatedattheendofHwy652North, a paved road in theSunday Lake Area, about180 km northeast ofCochrane, is the site of the

Detour Lake Project, a massive goldundertaking by Detour Gold that hasalready been called “the largest puregoldplayinCanada.”

It’sastrongstatementbutonethatfewwilldispute,becauseasidefromthephysi-cal dimension of the property, it alreadycontainsopen-pitreservesof14.9millionounces and global resources (Measuredand Indicated) of 20.5 million ounces ofgold (estimated at US$850/oz); enoughforatleasta21-yearmineatathroughputthatwillreach61,000tpd.

Tofurthersupporttheseexpectationscomesthefactthatthenewminesarenextto old ones on the same site of PlacerDome’s former Detour Lake Mine, an

historicproducerof1.8millionouncesofgoldbetween1983and1999.

WhenDetourGoldannouncedplansin2010 to develop the Detour Lake Projectwiththeintentofeventuallyinvestingmorethan $1.2 billion in construction, peopletook notice, and today applicants fromacrossthecountryareeyeingtheprojectasaplaceoffutureemployment.

Thecompanyhasalreadyenteredintocommitments for approximately $540million for the project and has spentapproximately $80 million as ofDecember 31, 2010. The company hasabout$970millionincash,whichissuf-ficienttoadvancethedevelopmentoftheproject through mid-2012. The con-struction process remains on scheduleandonbudgetatthistime.

Thisprojectwillhaveasignificantimpacton the economy of Northern Ontario. Infact,morethan1000directworkerswillbe

neededduringtheconstructionphasealone.As expected, housing for these large num-bersofconstructionworkersandbuildingalargeminingcamprequiredcarefulconsid-eration for its inhabitantsand theenviron-mentwherethecampwastobebuilt.

Sheldon Rachuk, Detour Gold’sDirector of Procurement, Contracts andLogistics,said:“Thecampwasoneofourfirstpriorities,becauseithadtoprovideasafe ‘home-away-from-home’ atmo-sphere,whileatthesametimebeaplacethatwouldenhanceproductivity.”

Rachuk said that ATCO Structures &Logisticswasawardedamajorcontracttofabricate and erect modular units for a1000-person construction camp toinclude dormitories, a modern kitchenanddiningroom,recreationroom,offic-es,andaFold-A-Waymetalbuilding forstoringanambulanceandfiretruck.

Withtheconstructioncampnownear-

“At the end of the paved road” is not the direction one would normally expect to hear when asking for the location of a gold property. In fact, it sounds more like what you’d get when looking for a hobby farm or small lake, but in the case of Detour Gold, those are the words used to point to its 500 km2 property in Northwestern Ontario.

PavedtoGold

By Russell Noble



ly completed and other infrastructureconstructionintheearlystages,thehiringof workers is in full motion with nearly400peopleworkingatsite,mostofthemona21-days-in,seven-days-outrotation.Onceinfulloperation,DetourGoldwillemploycloseto500peoplethatwillworkon a seven-days-in, seven-days-out rota-tionwith12-hourshifts.

Pierre Beaudoin, Detour Gold’s SeniorVice-PresidentofCapitalProjects,says:“Ifwehavearosterofsevenandseven,we’llmorelikelyattractyoungfamilies,andthecompa-nywilltrytosupportandencouragepeopletoestablishthemselvesinCochrane.Wewanttobeanactiveparticipant in theeconomicgrowthofCochraneandbecomepartofthecommunity’ssuccess.

“OurplanistomeetourcommitmentstoourAboriginalpartnersandalsosup-port Cochrane’s local businesses, whereouradministrativecentreislocated.”

Cochrane, a forestry-mill town of5,400, is already positioning itself as the“steppingoff ”point for theDetourLakegoldmineproject,andtownofficialssaythey have received many inquiries fromresidential, commercial and industrialdevelopersthankstothemine.

Like all mining projects, however, ittakes more than healthy ore bodies andcommunitysupporttoattractinvestorstoany given site, and one of the strongerattractions that brought Detour Gold tothispropertywastheinfrastructure.

Thepavedhighwayalreadymentionedwasagreatasset,ablessingsomemaysay,butthesite’sproximitytowaterandelec-tricity made it even more appealingbecause,aseverygoldminerknows,youcan’t pour without power and water.Fortunately, theDetourLakeProjecthasboth within its reach, and already crewsareworkingtobring“powertothepit”byconstructing a 185-km transmission linetoconnectwithOntario’selectricalgrid.

Company President and CEO GeraldPanneton said recently that “HavingreceivedthegreenlightforthetransmissionlineconstructionfromtheOntarioMinistryof theEnvironmentmeansthatthedevel-opmentoftheDetourLakemineremainson schedule as we move ahead with thedevelopmentofOntario’slargestgoldmine.”

Thetaskofbuildingthetransmissionline has been awarded to Detour LakeConstructors(DLC),apartnershipledbyPeter Kiewit Infrastructure Co., with

Drilling and blasting (below) continues as Detour Gold looks for more deposits on

its Northern Ontario property.

ATCO trailers are staged and ready for building a 1000-person construction camp.


|A$1.2-BillionProject

Moose Cree Constructors Inc (MooseCreeFirstNation),NewPostConstructorsLP (Taykwa Tagamou Nation) andWahgoshigFirstNation,aspartners.

Construction started earlier this yearwiththefirstsegmentof135kmfromtheproject site to Island Falls power station.Completionofthissegmentwillprovidea115kVconnectiontotheprovincialgridtosupport project construction. The secondsegmentof45km,fromIslandFallstothePinard transformer station (nearFraserdale),willstartinthewinterof2011-2012and,whencompleted,willprovideupto120MWat230kVofpowerduringtheoperationoftheDetourLakemine.

Withmostpermittingandapprovalsinplace or nearing finalization, the DetourLakeProjectistakingshape;butasalludedtoearlier,nothingwouldbehappeningwithoutNI43-101disclosureoftheJune2010feasi-bility study, where it stated 11.4 millionouncesofgoldreserveswithatargetedaver-ageannualproductionof650,000ouncesatthesite.Nowwithamineralreserveupdatejustannounced,whichreached14.9millionounces,DetourGold is initiatingeconomicstudies to evaluate a potential expansion oftheminingoperation.

Reaching these numbers took DetourGoldarelativelyshorttime.Sinceacquir-ingthepropertyfouryearsago,thecom-

pany has completed more than 500,000metres of drilling, and last year alone itdrilled107,000metres.

Evennowafterdefiningnearly15mil-lion ounces in reserves, Detour Gold ishopefultofindmoreouncesonitsprop-erty as the Detour Lake deposit remainsopen to the west and at depth.Approximately50,000metresofdrillingisplannedforthisyearwiththeobjectiveoffurther expanding the mineral reserve.AlongwithAbitibiGreenstonebelts,thereisalsomore thanonegolddeposit tobefound. With two main structures cross-cutting the property for a total strikelength of nearly 80 km, Detour Gold is

Site work and in particular, connecting the property to the province’s power grid, is quickly transforming the Detour Lake Gold project into one of the busier mining sites in Canada. One of the major activities at the site includes drilling and examining core. Approximately 50,000 metres of drilling is planned for this year.

Next to gold reserves, few things are as important to the success of the Detour Gold Project as keeping the crews healthy, happy, and productive and Detour Gold has gone to great lengths to ensure this by building a modern camp, including kitchen and eating facilities that rival many found in hotels and restaurants.



confidentinthepotentialoffindingsomehigh-gradeinthenextfewyearsforanicesweetenertoitsminingoperation.

Knowingwhat’sinthegroundishalfthebattle,theotherhalfisgettingitout;and that will happen within the nextcoupleofyearsasconventionalopen-pitminingmethodswillbeusedtominetheDetour Lake deposit, utilizing a fleet ofupto36haultrucks(320tonneclass),2electriccableshovels(40m3),3electric-hydraulic shovels (28 m3), 6 drills andvarious ancillary equipment to supportthe mining operation. The open-pitdesign incorporates 12-m-high bencheswitha35-m-widemainroadatamaxi-mumgradeof10%.

(Note:* Toromont CAT, a division ofToromontIndustriesLtd.,hasbeenselect-edbyDetourGoldtosupplytheproduc-tion fleet of mining trucks and supportequipment. An initial fleet of 18 CAT795F AC 320-tonne mining trucks hasbeen purchased along with two RH340Bucyrusshovels).TheDetourLakeMinewillbethefirstintheworldtouseacom-pletefleetofthesenew-sizedCATtrucks.

Thecompany’sstrategyremains,asperthefeasibilitystudy,todeveloptheminingschedule using an elevated cut-off gradethroughtheearlyyearsforahigherheadgradetobeprocessedattheplant.

Asforprocessing,thefeasibilitystudyplanscalledforusingaconventionalgrav-ity, cyanidation and carbon-in-pulp pro-cessingfacilityinitiallyoperatingat55,000tpd and ramping up to 61,000 tpd. Thegrindingcircuitwillconsistoftwoparallellines,eachhavingonetwin-pinion,semi-autogenious(SAG)mill(36’x20’)andonetwo-pinionballmill(26’x40’).Thesefourmillswillbeequippedwithapairof7,500kWvariablespeeddrivemotors.

Detour Gold is already starting tothink bigger and is moving ahead withfurther economic studies to assess thepotential for increasing the annual pro-duction profile once the project hasreachedproductioninearly2013.Severalscenariosforanincreaseinmillcapacity(processingplantexpansion)willbeeval-uatedinthosestudies,includingthrough-put options between 75,000 and 100,000tpd. Its purchased gyratory crusher isalready designed for higher capacity. AtUS$1,000/ozorabove,andoncetheplant

expansion is completed, the companycould lower the gold cut-off grade andgenerateahighermineralreserve.

DetourGold’sDetourLakeProjectisamassive undertaking and while the sitedoesn’t look like much more right nowthanasnow-coveredtrailerparknexttoafrozen lake, it will gradually transformintooneofthegreatestminingcampsand

operationsinCanada,ifnottheworld.“Manyofthenewminescomingonline

are large-scale operations, compared tothetwoorthreepreviousgenerations,anddespite the challenges associated with aproject of this magnitude, Detour Gold’steam is highly qualified and ready,” saysPresidentandCEOGeraldPanneton.

SoisCanada…bringiton! CMJ


|Dewatering

In June, 2009, David Larcheacquiredtherightstoaformer,open-pit gold mine known asthe Golden Arrow, locatedsome 65 km east of Timmins,Ontario. The mine producednearly 280,000 tonnes of low-

gradeorebeforebeingclosedin1983,butwithgoldtradingatmorethan$1,000anounce Larche saw plenty of potential toputGoldenArrowbackintooperation.

There was just one problem though.Thepit,whichisabout150mlong,125mwideand70mdeep,hadfilledwithwaterand, naturally, had to be pumped beforeany attempts were made to go after themine’sremaininggold.

Larche,presidentandCEOofVictoriaGoldMinesEastTimminsLtd,appliedtotheOntarioMinistryoftheEnvironmentfor permits to pump the water from the

By Correspondent D’Arcy Jenish

Under a

Golden Pond



pit locatedon the524-haGoldenArrowproperty.TheministryapprovedLarche’sapplication last June and within weeksdewateringbegan.

After water quality from the pit hadbeen tested and shown to be clean fromthe start, the water was pumped intodecantationandmonitoringbasinsbeforeeventually flowing into the swamp oncewater quality was tested making sure nocontaminants or suspended solids madetheirwayintotheswamp.

“I’ve been in the industry since 1981andbeenpartof10mines,” saysLarche,whose father John Larche was the pros-pectorwhostaked thecelebratedHemlogoldpropertyinnorthwesternOntariointhelate1970s.“Thiswasthebiggestdewa-teringprojectI’vedone.”

Withpermitsinplace,Larche’screwsstarted to pump 8.6 million litres of

waterperdayusingdiesel-poweredgen-erators at the start, then switched toelectric pumps as they began to worktheirwaytothebottom.Eitherway,thebesttheycoulddowastolowerthewater

level about six inches a day, unless itrained. “One day of rain costs you twodaysofdewatering,”saysLarche.“Thepitis equivalent to several small lakesbecauseit’ssodeep.”

GoldenA panoramic view of the Golden Arrow pond east of Timmins

where a massive “dewatering” project is taking place to allow drillers to enter in search of the remaining gold in the pit.

Pumping and bulk sampling will resume shortly.


|Dewatering

Inanyevent,theykeptgoinguntilearlyDecember, 2010, when they had to shutdownforthewinter.Bythen,though,theyhadremovedabout90percentofthewater.

In themeantime,Larchehad foundapartner who would drill the property todetermine the extent and grade of thegold deposit at Golden Arrow. OnNovember 2, 2010, Kingston-based

Murgor Resources Inc. signed a letter ofintentwithVictoriatoacquireuptoa70percentinterestintheproperty.

Murgor president and CEO AndreTessier says his company has agreed tospend$4millionoverthenexttwoyearsto earn a 55 per cent interest and canboostthatto70percentbycompletingapre-feasibilitystudy.

“We examined the property in the fieldandthoughtitwasagreatprojectwithlotsofupside,”saysTessier.“There’sstillalotofgoldinthewalls,inthefloorandbelowthepit.”

Aftersigningtheletterofintent,Murgorwasabletosetupadrillonabenchatabout30m below the surface. The companydrilledeightholesandtookabout1,200mofcoresamplesfromthebottomofthepitandfromasoutheastextensionofthemin-eralized zone. “The results were fantasticand the mineralization is open at depth,saysTessier.”Resultsfromthefirstfourdrillholescompletedatprintreturnedupto59metersof2.64g/tgold.

One other aspect of the projectappealedtoTessier.TheMinistryofMinesand Northern Development had alreadyissued a permit to Victoria Gold MinesEast Timmins that would now allowMurgor Resources Inc. to extract a bulksample of up to 100,000 tonnes of ore.Therearefivemillswithina70kmradiusof the site to process the material. BothTessier and Larche are well experiencedwith finding and developing propertiesand they are confident that the GoldenArrowprojecthasabrightfuture.

Tessierhasbeeninvolvedinmineralexplorationsince1985andworkedasaconsultant for Barrick Gold, TeckCominco and HudBay Minerals beforejoining Murgor as president in 2003.The company has exploration projectsin the Flin Flon district in northernManitobaandtheChibougamouregionof central Quebec, but the GoldenArrowminewillbeitsflagshippropertyfortheforeseeablefuture.

Larche,meanwhile,hasalwaysbeenanopportunistwhopursueswhatever looks

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tobeprofitable.Hewashuntingfornickelandotherindustrialmetals for severalyearsuntil thepriceofgoldbegan to sky-rocket.Hefounda“hotgoldplay” inhisownbackyard—thePorcupine-Destor fault zone that extends roughly fromTimmins,wherehemakeshishome,toVald’Or,Quebec.

“Therearehundredsandhundredsofdepositsoffthismaingoldfault,”hesays.“Everythingisonfireuphere.Thewholedistrictispaintedgold.It’sgoingtobeabusyyear.”

Thepartnersagreethatifgoldwastradingat$400anouncetheGoldenArrowpitwouldstillbefullofwater,butat$1,200itwasworthre-visiting.

Thepreviousmine,whichoperated from1981untilearly1983, yieldedorewithanaveragegradeof2.1gramsofgoldpertonne.Suchlow-gradeorecanbeeconomicallyfeasibleatcurrent prices, Larche says, because the cost of operating anopenpitminecouldbeaslowas$10to$12pertonne.

Thepropertywasfirstexploredinlate1940sandtheunder-groundworkingsfromthatperiod,includinga450-footshaftand1,550feetoflateraldevelopment,arestillthere.Theresultsofthedrillingandcoresamplingdoneatthattimeareavailableaswell.Larcheusedthoseresultstoproducea3-Dcomputer-izedmodelofthedeposit.Itshowedalarge,low-gradegold-bearinghaloaroundtheexistingdeposit.

“Everybodyisfairlyconfidentthattheinformationisgood,”saysLarche.“Butinthemodernpromotionalworldyoucan’tgoouttothemarketwith60-year-olddata.Youhavetore-drill.”

Inotherwords,hecouldn’tbaseashareissueontheolddataorpromotethepropertypublicly,butwasabletoreachapri-vateearn-inagreementwithMurgor.BothheandTessierwereconfidentthattheirdrillingprogramwouldproducepositiveresults.InitialresultsfromMurgor’sduediligencedrillinghasproventhemright,withresultsofupto2.64g/tgoldover59metersofdrillcore.

“Murgorhasaveryaggressivedrillingcampaignplanned,”Larcheadds.“Thereshouldbesomereallygoodnewscomingoutinthenextsixmonths.” CMJ

Crews maintain a presence at the Golden Arrow property even

during the winter.

www.bba.com


|ModernTechnology



Despite recent economic challenges,NorthernOntarioremainsalandofnatu-ralriches.Today,theHemloarea,approxi-mately350km

eastofThunderBay,isoneof the more active goldminingdistrictsinOntario,and the Hemlo Property,owned and operated byBarrickGoldCorp.,contin-ues to produce gold at animpressiverate.

FromitsDavidBell,anunderground mine, andthe Williams open-pitmine, the company pro-duced 275,000 ounces ofgold in 2009. Hemlo’sestimated proven andprobablemineralreservesasofDecember31,2009,were1.3millionounces.

The two Hemlo minesshare milling, processingandtailingsfacilitieswhereores from the two minesareco-mingledandfedtoastandardgrind,leachandcarbon-in-pulpextractioncircuitlocatedontheWilliamsproperty.

Aswithallmines,waterisacriticalconcernfortheHemloproject,andmonitoringwaterusagefor

oreprocessing,dustsuppressionandotheractivi-tiesisatoppriority.

Most Ontario mines obtain water from on-sitestormwatercaptureorbypumping surface orgroundwaterresources.AtHemlo,theyhaveoptedtomaximize the use ofreclaimed and recycledwaterwhereverpossible.

“Themillrequiresalotofwaterbecausetheoreisprocessedinaslurryformandwateriscontinuouslysent out to our tailingswith the tails,” says DaveSchmidt,Barrick’sProjectCoordinator. “The pondhas a storage volume ofapproximately10millioncubic meters. This waterinitially contains a verylowlevelofcyanidewhenitleavesthemill.Adivid-er dam segregates thepond,andthetailingsaredeposited on one side.

Sunlight breaks down the cyanide through a naturalprocess within a week and, afterwards, the water isdivertedtothepolishingsideof thepondwhere it isreclaimedandbroughtbackforuseinthemill.”

By Russell Noble

abuseDReuseDnot

Water gets

RecyclinG Reduces dRaw of fResh wateR

A compact, yet highly efficient reclamation system has been installed at Barrick’s Hemlo Property to recycle water for site process purposes.


|ModernTechnology

Thereclaimedwaterfromthetailingspondcanonlybeusedinthemill,where-aswaterrequiredforotherusesatHemlomustbedrawnatarateof100m3perhourfromnearbyCedarCreek.

Recognizingthatthisamountofwaterdrawn from the creek was too high,Hemlo’swatermanagementteamfocusedonothersources,includingthereclaimed

or recycled water mentioned earlier, orinstallingapumpingsystemthatrecyclesstormwater runoff collected in stormponds. The runoff water reduces theamountofwaterdrawnfromthecreekbyasmuchas75%,butitcanonlybeusedasa seasonal solution because the pondsfreezesolidinthewintermonths.

Schmidtsaysthesystemworkswell,but

becauseit’saseasonalsolution,thecompa-nysoughtadditionalimprovementstowarditsgoalofusingonlyrecycledwater.

The Hemlo team reviewed severalother treatment options and recentlyinstalled a system from Veolia WaterSolutions&TechnologiesCanada.

DavidOliphant,DirectorofIndustrialSalesforVeolia,explainedthatthesystemBarrick chose features a high-rate, sand-ballasted flocculation and clarificationprocessforremovingmetalsinaportionofitstailingswater.Oliphantsaidthatfol-lowingtreatment, therecycledwatercanthenbereusedassiteprocesswater.

Thesystem,calledtheACTIFLOprocess,has been successful in removing regulatedmetalswellbelowthecurrentCertificatesofApprovallimits,andtheclarifiedwaterqual-ityalsometand/orexceededtheeffluentcri-teria regarding additional metals and TotalSuspendedSolids(TSS).

Hemloinstalledthenewsysteminsidethemillbuildingandnowapproximately20% of the reclaimed tailings water isdirected to the process for clarificationandmetalsremoval.

“We essentially tap into the reclaimpipeline thatbringswaterback from thetailings basin to the mill and we run itthroughtheACTIFLOat100cubicmetresper hour for process water,” said DavidSchmidt. “Changes are planned for thepumphousethatwillincreasetheflowto120cubicmetresperhour.”

Becausetheprocessunititselfhasarela-tivelysmallfootprint(10mx10m),Barrickwas able to install it in the mill’s formercompressorroom,afterremovinglowpres-surecompressorsthatwerenolongerneed-edduetoanearlierprocesschange.

The compact size also eliminated theneedforaseparatebuildingtohousetheunit,reducingcostssignificantly.Installingitinthemillusingexistinginfrastructurenot only reduced installation costs buthavingthesystemdownstairs inthemillbuilding makes monitoring and mainte-nancemoreconvenient.

Thesystemhasbeeninoperationforjust over a year now and it’s been run-ning24hoursaday,sevendaysaweek,withoutanymajorissuesandisnowpro-viding 100 % of the William’s mine siteprocess water needs with the exceptionofpotablewater. CMJ


www.manulift.ca


|ModernTechnology

TheSudburyregionisknownworldwide for its massiveminingoperations,butrarelyis there anything written orsaid about the “other” high-

leveltechnologiesthatarerequiredtokeeptheminesinproductionandprofitable.

Moderntunneling,boringandblastingtechniques are always well documented,but when it comes to laboratories and

testing, information is often scarcebecausemanycompaniesconsiderittobe“privilegedandconfidential”innature.

Onecompany,however,thatdoesn’tmindtellingtheworldwhatit’sdoing“inthelabs,”sotospeak,isXstrata,becauseitisproudofthenewprocesssupportplantitdesignedtoprocessawiderangeoforesfortesting.

The Xstrata Process Support (XPS)plantcrushesandscreensupto150kg/

hr (330 lb/hr) of ore, compared withabout 100 kg/day (220 lb/day) for the

company’s former manuallyoperatedfacility.

“As far as we know, there isnothingelselikeit,”saysanXPSProcess Mineralogy Manager,DominicFragomeni.“Thecom-binationofmid-scaleequipmentand automated conveying andscreening equipment increasesproductivity, improves safety byreducing repetitive strain andensurestestsampleintegrityandhomogeneity.”

A new double-deck circular vibratoryscreen plays a key role in automating theflowofmaterialthroughthefacilitybysepa-ratingon-sizecrushedorehavingmaximumparticle sizes down to 1.7 mm (10 mesh)from oversized fragments that require fur-ther processing. The screen disassemblesrapidly for thorough cleaning, to preventcross-contaminationbetweenbatches.

Assessing the commercial viability of mineral depositsThe new crushing and blending plant isone of several lab-scale testwork units atXPS. The Sudbury facility also containspilotequipmenttotestflotation,extractionandsmeltingstrategiesaswellasscanning

New labs cut waiting time from days to hours

QuickTurnaround

Spinning riffler divides sam-ples of blended on-size par-ticles into small batches for

testing and analysis.

The two-deck 76 cm (30 in.) diameter circular vibratory separator screens crushed ore. Oversize particles pass through discharge spouts and into the secondary crusher for fur-ther size reduction. On-size material passes through the screens and is discharged onto the secondary conveyor.

By Russell Noble


|ModernTechnology

electronmicroscopes(QEMSCAN)andElectronMicroprobetoanalyzemineralcompositionsandmodalmineralogy.

XPSonceprovidedtheseservicessolelyforitscorporateparent,XstrataPlc,butnowoperatesasanindependentsubsidiary,provid-ingtechnicalservicestothewidermineralsprocessingindustry.

Almost50%ofXPSprojectsarenowexternaltoXstrataandthisisgrowing.

The Process Mineralogy group evaluates samples from mineraldiscoveriestoassesscomposition,physicalproperties,orechemistryandresponsetoextractionmethods.Thisdeterminesprofitpotential.

“Forexample,if90percentofadeposit’snickelisdeportedinthe mineral pentlandite, it may be economically viable,” saysFragomeni, “but if significant amounts occur in pyrrhotite, itmaynotbeviablebecauseitisinasolidsolutionandthereforehaslittlepotentialforupgradingintoaconcentrate.”

Although assays offer clues to processing strategies, everydiscoveryhasuniquemineralogy.Beforespendingtensorevenhundredsofmillionsofdollarsonnewextractionfacilities,many

companies are now testing ore samples at laboratory or on apilot-plant scale to optimize their processes, and that’s whereXPSProcessMineralogy’snewcrushingandblendingpilotplantprovidesthereplicatesamplechargesforthosetests.

Samplerequirementsrangefrom50kg(110lb)ofmaterialforlaboratorytestingto10metrictons(12tons)ormoreforanextensivedevelopmentprogram.

Mineralogymayvarysignificantlywithinasinglemineraldis-covery.Geologistscapturethosedifferencesbydrillingforsamplesatdifferentsites.XPSthencrushesthedrillcoresamplestoasizedeterminedbythetestworkprogram,screens,blendsandsplitsthematerialintohomogenoussamplesthatrepresentthemineralogyofthedepositorresource.Thisapproachisalsoappliedtodistinctzonesorvariabilitysampleswithintheresource.

Conveyors, Screening and Automated Material Movement“In the past, most laboratories would produce samples manually.Someonewouldfeedtheoreintothecrusher,thentakethecrushedoreinapailanddumpitintoouroriginal102cm(40in.)diametersingledeckscreen.Thefineswouldgointoapailandtheoversizewouldgobackintothecrusher.Wewouldkeepgoinguntilallthematerialhadbeencrusheddowntothespecifiedproductsize.

“Producinga100kg(220lb)chargewouldtakeaworkerafullday.Onemetric tonwouldrequire two full-timeemployees towork for twoweeks.We thenhad toblendallof the screenedmaterialtoensureuniformityofeachproductionruntoensurethatallchargesarehomogenous,”saysFragomeni.

Theautomatedlineturnsthosedaysintohours,reducingthetimeneededtopreparea200kg(440lb)samplefromtwodaysto3-4hrs,andproducingmultipletonsofsamplesinweeksratherthanmonths.

Theprocessbeginswitharemotelycontrolledplatformthathoistspailsoforeanddumpsthemintoahopper.Thehopperfeedstheoreintoan20cmx25cm(8in.x10in.)primaryjawcrusherthathan-dlesorefragmentsupto15cm(6in.)indiameter.

Crushedore isconveyedtothenew76cm(30in.)double-deck screener, a standard Vibroscreen® separator from KasonCorp., and sifted first by the upper deck. This large-aperture,heavy-dutyupper“scalping”screenofstainlesssteelwireremovesthelargest,mostabrasivefragments,therebyprotectingthefin-er-mesh lower screen from damage while contributing signifi-cantly to the machine’s capacity. Material passing through theupperscreenfallsontothelowerscreen,whichremovesallpar-ticlesgreaterthantheaperturesizeofanygivenscreeninstalled.

XPScanchangebothscreenstomeetcustomerrequirements.Ittypicallyusesa (4mesh)upperscalpingscreenanda(10mesh)lowercutscreen.Somecustomerspreferdifferentsizes.

“We work with one client who specifies a (3 mesh) cutscreenandanotherwhospecifiesa(6mesh).We’lldowhateverthecustomerrequires,”saidFragomeni.

Oversizeparticlesexitbothscreensat theirperipheries throughdischargespoutsandaretransportedbacktothecrusherforpulver-izing,whileon-sizeparticlesareloadedintodrumsawaitingblending.

Fabricatedof304stainlesssteel,thescreenisabletowithstandconstant vibration of abrasive particles. Vibration induced by a746 kW imbalanced-weight gyratory motor mounted directlybeneaththescreeningchamberpromotesrapidpassageofon-size

The automated plant crushes and screens up to 150 kg/hour (330 lb/hour) of ore via a primary and sec-ondary crusher with intermediate screens. Oversize material dis-charged from the Kason screener feeds the secondary crusher.

Computers play a major part in analyzing and recording test results.



particlesthroughaperturesinthescreen,whilemovingoversizeparticlesalongapredefinedpathtothedischargechuteateachscreen’speriphery.

“Thecircularscreen,”saysFragomeni,“handlesasmuchaswe can throw at it, and could probably handle the additionalvolumeifweexpandedtheplant.”

Aconveyorsystemreceivesthefinesfromthecircularscreen.Aconveyorremovesoversizedmaterialsoitcanbere-crushed,sifted,combined with the fines from the first screening and placed indrums.Thedrumsareblendedinoneoftwonewhigh-efficiency,high-volumeblenderscapableofmixingmultipledrumsinasingleoperation, significantly reducing blending time when comparedwiththesmallerblendersXstrataoperatedinthepast.Barrelsofblended material are then discharged into two spinning rifflers,whichdividethesamplesintosmallerrepresentativeandreplicatebatches.Themixingandrifflingprocess is soconsistent, itpro-ducestestchargeswithrelativestandarddeviationslessthan2-5percentintheirbasemetalcontent.

Cleanable equipment prevents cross-contaminationWhilescreeningperformanceisvital,soiscleanability.“Werunonebatchafteranotherthroughtheunitandwecannottolerateanycross-contamination,”saidFragomeni.

XPS designed the plant so workers could clean it com-pletelyinthreetofourhours.TheKasonscreenisamongthefastestmachinestoclean.AccordingtoFragomeni,“Youjustundoafewclamps,takeoutthescreenandvacuumthetop.This gives workers more time to spend on harder-to-cleanequipmentsuchascrushersandblenders.”

XPSwasfamiliarwiththescreenbeforespecifyingthenew76cm(30in.)unitforitsnewplant.“Weoperatedanolder,30inchsingledeckvibratingscreenerinourbench-scalelab.It’sastandardproductinmineralprocessing,butweneededadualdeckmodelfortheautomatedcrushingplant,”saidFragomeni.

“Ournewfacilityisabreakwiththepast.Becausewehaveautomatedthecrushingandsortingofmineralswithoutsac-rificingcleanability,ourcrushingplantislargerandfaster,andwecanproducelargeamountsofhigh-quality,replicatesam-plesatcompetitiveprices,whichisoftenthemostimportantpartofatestworkprogram.” CMJ

Close monitoring of samples ensures accurate results from the ore testing.

www.cattrongroup.com



|MininginOntario

GaloreProsPecTs

Province conTinues To offerouTsTanding oPPorTuniTies

onTario has

Goldcorp’s headframe at its Red Lake project is a well-maintained structure that symbolizes

the pride and quality of workmanship that goes into most mining projects in the province.



Ontario has been blessedwithanabundanceofnat-ural resources, includinguntold mineral potential.For more than a century,

word-classmineraldiscoveriesinthisprov-incehavebroughtdevelopmentandpros-perity,alongwithscientificandtechnologi-cal advances, enabling Ontario’s economyto evolve through innovation. From theearliest times, mining spurred on infra-structuredevelopment,enabledmoreequi-tableregionaldevelopmentandsustainedavarietyofsupportindustries.Theseindus-triesincludeobviousoneslikemanufactur-ing,butalsoperhapssomeunexpectedoneslikeeducationandfinancialservices.

Today,miningcontinuestobeaneco-nomic pillar of Ontario. It is well posi-tioned to grow its contribution to oureconomy. Thoughthenumberfluctuateswith various commodity price changes,mining in Ontario had revenues of $6.3billionin2009(downbyabout30%duetothe global economic downturn). Theindustry provides a major boost to ourfinancial sector, with the Toronto StockExchange(TSX)currentlybeingthelead-ingglobalminingexchange,listing57%oftheworld’spublicminingcompaniesandraising more mining equity capital thananyotherexchange.

Historically,Ontariohastakenadvan-tageofspikesthatoccurredasaresultofUS industrialization, the post-SecondWorldWarrebuildingofEuropeandtheindustrializationofJapan. Wefindour-selves in another of these definingmomentsofimmenseopportunity.Largenations such as China, India and Brazilare experiencing mass urbanization andrapid development. These nations aredetermined to narrow the gap betweenWesternanddevelopingnationlifestyles.Todothat,mineralproductsareessential.

Thenext20yearspresentawindowofopportunity for a jurisdiction with thegeology, the environmental protections,thesafetyrecordandthegovernmentpoli-ciestobuildadeliberateandwellplannedstrategy fornewmines. Buildingonourglobalreputationinminingandourdesireto be leaders in the green economy,Ontario’snaturalresourcepotentialcanbeturnedintosustainablewealth.

WhatthisrepresentsforOntarioisanar-row window of opportunity, both to takeadvantage of the vast new markets for ourcommodities,butalsotoredefineourcom-petitive position in the new economic andindustrial landscape that is being formed.This new landscape will allow Ontario toalignitseconomicandenvironmentalgoals.Waitingtoactisakintodrawingthecurtainsonthewindowofopportunitybeforeus,andquite possibly losing our control over ourfutureresourcepolicytomuchmorepower-fulandstrategicglobalplayers.

Mining in OntarioMiningisanindustrythatisactiveinallparts of the province. More than 50diversecommunities,includingWindsor,Goderich, Perth, Midland, Sudbury,Timmins, Red Lake, Kirkland Lake,

Marathon, North Bay and Attawapiskatallhaveminingasanimportantplayerintheir local economies. In some parts oftheprovince,especiallyintheFarNorth,mineral resource development is criticalto creating employment and entrepre-neurial spin-off opportunities. As thelargest private sector employer ofAboriginals in Canada, mining makes asignificantcontributiontothewell-beinganddevelopmentofremotecommunities.

Partiallyduetoitsexceptionallevelofproductivity (each employee producesmore than $500,000 worth of mineralproducts annually), the industry onlyemploys about 17,000 people directly.However,thetotalfordirectandindirectemploymentiscloseto100,000,whilethemineral sector cluster employs about200,000peopleintheprovince. Itannu-

GaloreProsPecTs

*Information for this Special Report provided by the Ontario Mining Association.

SpecialReport|


|MininginOntario

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allyprovidesanestimated$6.6billioninpersonal andcorporate incomeand$1.5billioningovernmentrevenues.

Accordingtoastudy1byUniversityofToronto economists Peter Dungan andSteveMurphy,eventheadditionofasin-gle mine can have a profound positiveimpact on the Ontario economy. Thecombined direct, indirect and inducedeffects of a single “representative mine”areextremelylarge,withtheoutputofthatsingleminecontributing$278milliontoOntario’s economy and $84 million togovernmentrevenuesannually.Moreover,thestudydemonstratesthatminingisanactivitywhichhas,intheeconomicsense,less“leakage”thanothersectors. Alargepercentageofthebenefitsoftheeconomicdevelopmentofaminestaylocal,fuellinginducedeconomicactivitythatisdifficultto quantify, but visible in communitieswithsuccessfulminingoperations.

Other tangible benefits are a direct

resultofmodernmining’scommitmenttotheprincipleofcorporatesocialresponsi-bility.Miningcontinuestobeamongthesafest industries in Ontario. In 2009, itwas the second safest industry amongOntario’s industrial sectors, three timessafer than forestry, construction andhealthcare,andfourtimessaferthanagri-cultureandtransportation.Miningcom-panies invest in the well-being of theircommunities–forinstance,byhelpingtopay for roads, electrical grids, environ-mentalprotectionprograms,medicalcen-tres,sportsfacilitiesandcommunitycen-tres.Theyalsofundschools,universities,collegesandresearchfacilities–buildingtheir competitive advantage by support-ing centres of creativity and innovation.Theindustryinvestsinits–andbyexten-sion,our–futureinotherwaysaswell–$1.7 billion annually in construction,equipment, exploration and research &development, $2,300 annually in safety

training per employee, $130 million inenvironmentalprotectionandmore.

Despite the recent economic down-turn, if we look back two years and for-ward about three, an incomplete list ofinvestmentswillshowthatOntariomin-ing capital expenditures are more than$8.5billion–thisisinadditiontooperat-ing expenditures and exploration activi-ties. What other sectors in Ontario aremakingthislevelofinvestment?Clearly,thisisanindicationoftheindustry’sbeliefinOntario’spotential.Itisalsoareflectionof the industry’sbullishanticipationofaperiodofheighteneddemandforitsprod-uctsinthenearfuture.

New Window of OpportunityAlthough globalization has been reshap-ing business realities and policy impera-tives for some time now, many analystsagree that in the next 20 years we willexperience commodity demand on par

1 Source: CEMI/Rio Tinto presentation - Statistic derived from analysis of the United Nations, World Urbanization Prospects, The 2007 Revision Population Database)

http://www.hcisteel.com

http://www.canadianminingjournal.1/13/11


with, and likely exceeding, previous his-toricalspikes.“Chinaneedstobuildthreecities larger than Sydney (or Toronto)every year until 2030 to accommodaterural to urban migration”.1 “The globaleconomic recovery is putting upwardpressure on commodity prices, suddenlymaking mines in remote Northern areasviable”.2Smalldepositsareonlyeconomicinhighdemandperiods.Remotedepos-its, due to the infrastructure costs, areequally only viable when demand canoffsetthesecosts.

However,wealsoknowthattherearemoments of immense opportunity whendemandspikesdue to significantgeopo-liticalandeconomicforces.Usingcopperasanexample,weseetheimpactonpriceduring these spikes. Arguably we haveenteredsuchadefiningperiod.Ifitdoesnotwishtobeleftbehind,Ontariomustbe decisive and act fast to grasp the tre-mendous opportunities becoming avail-

2 Conference Board of Canada, December 17, 2010 http://www.conferenceboard.ca/e-library/abstract.aspx?=did=3948)

A headframe adjacent to a healthy wetlands serves to clearly illustrate how mining and Mother Nature can

work in harmony to help protect the environment.

http://www.conferenceboard.ca/e-library/abstract.aspx?=did=3948


|MininginOntario

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able on global markets and to chart ourfutureinaccordancetoOntarians’valuesandaspirations.

How Can Ontario Benefit from a Historic Opportunity?To benefit from today’s global economicrealities,Ontarioneedstosetclear,strategictargets for building up its commodityreserves and establishing more mines.Ontario’s roots in the industrial economycomplements our emerging green econo-my. Without minerals and metals wewouldn’t have wind turbines, solar cells,hybrid vehicles and indeed most of thebuildingblocksofmodernsociety.Further,Ontario’s environmental protection, safetystandards and international reputation inminingallowittocapitalizeonitsgeologicpotentiallikefewotherjurisdictions.

WearefortunatethatOntariocontin-ues to yield staggering mineral finds.Mostrecently,thediscoveryofoneofthe

world’slargestuntappeddepositsofchro-miteinthe“RingofFire”areaofNorthernOntario offers untold potential, suggestingparallels to China’s dominant position withrespect to rare earth minerals. The worldproductionofchromite–usedtomakestain-less steel – is now 22.4 million tonnes peryear,withSouthAfricaandZimbabwecon-tributing70%ofthisresource. Annualpro-ductionofchromitefromthenewdepositsinOntario could be as much as 10 milliontonnes per year when supplying the Asianmarkets(Chinaconsumes50%ofworldpro-duction of chromite). The overall resourceestimate indicates that there is enoughchrome ore to supply the North Americanmarketforthenext150-200years.1

Rareearthelementmineralsareamongthenon-traditionalmetalsbeingtargetedforexplorationinOntario.Smartphones,hybrid cards, televisions, super conduc-tors, medical diagnostic devices andnumerous other applications all contain

rareearthelements.Worldwidedemandfortheseelementsisexpectedtooutstripsupply by 40,000 tonnes annually unlessnewsourcesaredeveloped.2

China, which functions on the basis ofaggressive five year plans, produces about95% of the global supply and has 37% ofprovenreserves.Theyrecentlyannouncedacuttorareearthexportsby35%in2011,fol-lowinganexportreductioncutinthesecondhalfof2010.Theyarealsousingthisdomi-nancetostrengthentheiremerging lead inmanyalternativeenergytechnologies.

Canadaishometo56%ofthepotentialrare-earthelementdepositsoutsideofChina;Quebec, with 41 exploration projects, andOntario,with28,hasthebestpotential.2Arare earth mineral sector could form thefoundation for new manufacturing inOntarioforgreenandfuturisticproducts.

In addition to investing in domesticand overseas natural resources, theChinesemadedirectinvestmentswortha

1 Source: Fall/Winter 2010 issue of the Ontario Prospector2 Dave Simms, CBC media, Feb 17/10


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|MininginOntario

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Complex geology, extreme weather and remote locations are challenges enough. Add to that, social, environmental and regulatory issues and you can appreciate why mining is a challenge.

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total of $2.4 billion in 420 overseasenterprisesin75countriesandregions,(miningbeingamongthebiggesttargetsectors).Itisclearthatforeigninterestsand some ENGOs have considerableresourcesandabilitytocontrolresourcedevelopment in Ontario. The govern-ment cannot let this occur and furthermustensureallOntariansbenefit fromourrichendowment.

How do we get there?Thewaytoturnournaturalresourcepoten-tialintosustainablewealthonasignificantscale is for Ontario to adopt a deliberatestrategyforpromotingnewmines.

Thestakeshavebecomehigher.Itisnolonger acceptable to be complacent abouthavingawell-establishedminingindustry.Theworldhaschangedrapidly in itsatti-tudetoeconomicdevelopmentandnationbuilding,notjustinplaceswithwell-estab-lishedmineralindustrieslikeAustraliaandCanada,butevenincountrieswheredevel-opmentisdesperatelysoughtandunequiv-ocallywelcomed.

The world needs the products ofmining.Mineswillbebuiltandoperat-ed. Whatbetterplace tomine than inOntario, with its responsible environ-mental protection, world class safetyrecordanddesire toparticipate innewandemergingtechnologies?

The existing 20-year window ofopportunitycanbespentonpermittingandapprovals,oritcanbespentopeningmines. Our environmental and safetyrecordwillnotbeplacedinjeopardybycompressingdevelopmenttimelinesandaligning interests to ensure province,industryandcommunityallbenefit.

Recommendations•Establish a target number for new

minesinOntario.•Ontario should balance conservation

targets with development targets. WearepoisedtodevelopnewminesintheRingofFireandelsewhereifaproactive,government-ledeffortiscontinued.

•Compress development timelines.In Ontario it can take years, or evendecades,todevelopamineraldepositintoaproducingmine—typicallya10-15yeardevelopment horizon for a base metalmine. Totakeadvantageofourcurrent


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|MininginOntario

Development Project Status

Advanced Exploration ProjectORGANIZATION PROPERTYNAME RESOURCE

CadillacVenturesInc ThierryMineProperty Cu,Ni,PGM

CanAlaskaUraniumLtd ElliotLakeProject Ur

CanadianArrowMinesLimited AlexoProperty Ni,Cu

CanadianArrowMinesLimited KenbridgeProject Ni,Cu

DianorResourcesInc Leadbetter(&LeadbetterExtension)Project

Diamond,Au,Sapphire,Ruby

InspirationMiningCorporation LangmuirProject Ni,PGM

LibertyMinesInc HartProject Ni,PGM

MagmaMetalsLimited ThunderBayNorthProject Pt,Pd,Cu,Ni

NorthAmericanPalladiumLtd OffsetZone Pt,Pd,Au,Ni,Cu

NorthAmericanPalladiumLtd ShebandowanWestProject Ni,Cu,PGM

PeleMountainResourcesInc ElliotLakeProject Ur

PhoscanChemicalCorp MartisonProject Phosphate,Niobium

RainyRiverResourcesLtd RainyRiverProject Au,Ni,Cu

RogueResourcesInc AbitibiEastProperty Au,Ag,Cu,Zi,Pb

RogueResourcesInc LangmuirProperty Ni,Pt,Pd

RubiconMineralsCorporation PhoenixProject Au

StAndrewGoldfieldsLtd AquariusProject Au

StAndrewGoldfieldsLtd TaylorProject Au

StillwaterMiningCompany MarathonProject PGM,Cu

ValeS.A. TottenProject Ni

Xstrataplc FraserMorganDeposit Ni,Cu

MurgorResources GoldenArrowProperty Au

ORGANIZATION PROPERTYNAME RESOURCE

ClaudeResourcesInc MadsenMine Au

DetourGoldCorporation DetourLakeProperty Au

NorthgateMineralsCorporation Young-DavidsonProject Au,Ag

ORGANiZAtiON PROPERty NAME RESOURCE

FirstNickelInc LockerbyMine Ni,Cu

NorthAmericanPalladiumLtd LacdesIlesMine Pt,Pd,Au,Ni,Cu

ProdigyGoldInc MaginoMine Au

SageGoldInc ClavosMine Au

StAndrewGoldfieldsLtd ClavosMine Au

StAndrewGoldfieldsLtd HislopProject Au

WesdomeGoldMinesLtd MishiMine Au

Xstrataplc MontcalmMine Ni,Cu

Suspended Mine Status In Ontario

Producing Mine StatusORGANIZATION PROPERTYNAME RESOURCE

AgriumInc KapuskasingPhosphateRockMine

Phosphate

BarrickGoldCorporation HemloMine Au

BrigusGoldCorp BlackFoxMine Au

CompassMineralsInternational,Inc

SiftoCanadaInc-GoderichMine Salt

DeBeersCanadaInc VictorMine Diamonds

GoldcorpInc MusselwhiteMine Au

GoldcorpInc PorcupineMine Au

GoldcorpInc RedLakeGoldMines Au

KirklandLakeGoldInc MacassaMine Au

LakeShoreGoldCorp TimminsWestMine Au

LibertyMinesInc McWattersMine Ni,Cu

LibertyMinesInc RedstoneMine Ni

QuadraFNXMiningLtd LevackMine(&MorrisonDeposit)

Ni,Cu

QuadraFNXMiningLtd McCreedyWestMine Cu,Ni,Au,Pt,Pd

QuadraFNXMiningLtd PodolskyMine Cu,Ni,Au,Pt,Pd

RichmontMinesInc IslandGoldMine Au

StAndrewGoldfieldsLtd Holloway-HoltMine Au

UrsaMajorMineralsIncorporated

ShakespeareMine Ni,Cu,PGM

ValeS.A. ValeOntarioOperations(Copper)

Cu

ValeS.A. ValeOntarioOperations(Nickel) Ni,Co,PGM

WesdomeGoldMinesLtd EagleRiverMine Au

Xstrataplc FraserMine Cu

Xstrataplc KiddMine Cu,Zi,Ag

Xstrataplc NickelRimSouthMine Ni,Cu,Co,Au,Pt,Pd

window of opportunity, Ontario can nolongeraffordthosetimelines.Anengagedcivilservice,workingaggressivelywiththeindustryandthefederalgovernment,couldcutthesetimelinesinhalf.

•Developarareearthelementsstrategy.•Bringing our small deposits into produc-

tionwillprovideOntariowithinputsneces-saryinthemanufactureofnewtechnology.

•Provideforcomprehensiveandlong-rangegeologicaldatacollectionandmapping.

•AllowlocalmunicipalandFirstNationcommunities tohaveagreater shareofthebenefitsofmining.

•Thegovernmentmustmaintainthecur-

rentminingtaxrate.Itisvitaltoattractinvestment toOntario. However, shift-ingtheallocationofthoseexistingreve-nues would allow greater benefit to thehost community. In addition, any newmines that will become subject to theminingtaxcouldseeagreaterportionofthattaxallocatedtothehostcommunity.

•Use the Northern Ontario HeritageFund to spur thenecessary transporta-tionandpowerinfrastructureneedsforminingdevelopment.

•Allow smaller and start-up mines tobenefit from the Northern IndustrialElectricityRebateandtherecentchange

totheGlobalAdjustmentcalculation.•LowerWorkplaceSafetyand Insurance

Board premiums to reflect the safetyrecordoftheminingindustry.

•Implement environmental regulationthatprotectshumanhealth.

There is significant scientific uncer-tainty and technological limitations withregards to Regulation 194/419 and theToxic Reduction Act. Although imple-mentationofthesetwopolicieswillcon-tinuetoconsumesignificantgovernmentandindustryresources,itwillnotproducereadilyforeseeablebenefitstofurtherpro-tectingtheenvironment. CMJ


A look at what’s happening in Ontario


|Marketing

Mining and explorationcompaniesarenowpayingincreasing attention toindividual investors. Withthe constrained credit

markets of the last two years, increasingfocusisplacedoninvestorswhoarebuyingnewequityissues.Projects,especiallygoldprojects, are now being financed increas-ingly by equity instead of debt. A goodexampleisOsiskoMining’sMalarcticproj-ect budgeted originally at $930 million.Normally a low cost, long-life, large-scale

gold project in a stable mining-friendlyarealikeVald’Or,Quebecwouldhavebeenan ideal candidate for project finance.Osisko raised $942 million since 2007 ofwhich$642millionwasinequityandtheremaining$300millionincreditfromCPPInvestmentBoard($150million),SGF($75million),CATFinancial($55million)andFondsdeSolidarité($20million).

Aprojectfinancegroupwillhaveone-time loan negotiation with a group offinancial institutions when a bankablefeasibility study and permitting is com-

pleted. This normally requires a smallgroupoffinancialandtechnicalspecialiststo do a thorough review of technicalreportscombinedwithmineprojectvisits.

Contrast thiswith raisingmoney fromtheequitymarket.Generally,aminedevel-opercannotraisethefullamountofequityto finance a project in a one-shot equitydeal. The mine developer must have anongoing marketing profile with “the mar-ket” consisting of analyst, fund managers,financialadvisorsandevenhighnet-worthinvestors.Thiswaytheminedeveloperwill

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beinconstantcontactwithinvestmentdealerstomutuallydecidewhenthebesttimingwillbetoissuenewequityfinancing.Normallyseveraldifferentissuesofstockatdifferentperiodswithdifferentpriceswillberequiredtocompleteequityfinancingofthemineproject.

Minetoursandfieldvisitsareagoodwaytoshowthemeritsofa project; but it is expensive to arrange on-going regular projectvisits, especially with larger groups of analysts, fund managers,advisorsandeveninvestors.

According to Dmitry Kushnir, Manager, Investor Relations ofAgnico-Eagle Mines Limited, their mine tours are important andjustifythecostfrom$50,000toasmuchas$300,000. Kushnirstatestheirminetoursprovide“afirst-handunderstandingofthequalityofoperations,management,work forceandculture; theall-importantqualitativeaspects”oftheiroperations.Thereisanadditionalcostofproductiondisruptionaswell.

ManyminingdevelopersalsoparticipateininvestorshowssuchastheProspectorsandDevelopersAssociation(PDAC)annualmeetingin Toronto, the Cambridge House investment conferences,International InvestmentConference(IIC)andtheDenverForum.These conferences offer exposure to investors, financial advisors,analystsandfundmanagers.

Investorswhodonotparticipateinconferences,norvisitminingprojects,reallyhavetorelyonthecompanywebsiteforinformation.The website will be used to post financial reports, news releases,corporatepresentations,webcastsofconferencecalls,corporatevid-

Taking investors underground and pointing out features of a mine is a great way to rein-

force their support of the project.



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|Marketing

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eos,orIRcalendarofupcomingeventsaswellasoperationsupdates.Manycompa-niesalsoencourageindividualstosignupforemailnewsreleases.Theinformationcan be exported, sorted and graphed tomakeuseraccessaseasyaspossible.

Thecostofacompanywebsiteisgen-erallyasmallcostoftheinvestorrelationsbudget. According to David E. Whittle,ChiefFinancialOfficerofAlexcoResourceCorp.(silver mine producer in Yukon’sKenoHilldistrict),“Thecostofourweb-siteislessthan1.5%ofourinvestorrela-tionsbudget.Thelargestpartofthiscostisactuallymanagementtime.”Fromthis,it’s apparent that companies can, for arelativelysmalladditionalcost,reachoutthroughthewebtoattractnewprospectsandinvestors.

Thefirststepingoingthewebrouteis obvious: make sure it’s well designedandeasy tonavigate.Keep it simpleandclean. It’s soeasy forcompanymanagersto put too much information on their

website.A“busylook”willmakeitunat-tractiveandturnpeopleoff.

The second step is to optimize thewebsite search engine optimization

(SEO)sothatnewwebvisitorscanfindyoursite.Itisimportanttomonitorboththe traffic into a company website andhow visitors navigate through the site

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using a service such as Google Analytics, which isfree. According to Stéphane Hamel, eBusiness Strategist &WebAnalyticsteacheratLavalandUBC,itmaybeworthwhiletoengageanonlinemarketingprofessionaltoconsultonwrit-ing,useofkeywordtermsandevensitecontentarchitecturetoimproveSEO.Also,havingasmallbudgetforonlinemarketingcampaigns such as Google AdWords can increase web trafficandhelpfindoutwhattermsandkeywordsareeffectivebothattheirwebsiteandthatoftheircompetitors.

Thethirdstepistodevelopastrategyforreachingouttonew

investorsandnewmarketsbytheuseofsocialmediaorwhatistermedWeb2.0,whichisbecomingmoreimportantforinternetusers.ThemorecommonlyknownwebsitessuchasFacebook,LinkedIn,MySpace,TwitterandYouTubearerelevanttomanymorepeoplethanjusttheteenaged,andyoungadult.Facebookis turning out to be the 800 pound gorilla of the internet.AccordingtoInsideNetwork,aninternetresearchfirm,Facebookisnowthemostvisitedwebsiteintheworld.Facebookhasabout500 million users worldwide. About 41% of Americans and47.9%ofCanadiansuseFacebook.

Investors who do not participate in conferences, nor visit mining projects, really have to rely on the company website for information

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|Marketing

Social networks also give power toindividual consumers. In the past, cus-tomers who felt they were not treatedfairly would grumble to their friends,family and neighbours, or an estimated 250people.Notanymore.Frustratedcli-ents can and do take on major corpora-tionsinthesocialmedia.

One good example is about DaveCarroll, a Halifax-based musician whorecently complained about an airline andhisbrokenguitar.Noneofussawtheairlinebreakhisinstrument,butabout11millionpeoplesawhisYouTubevideo.Themediacoverage of his YouTube video, combinedwithaninterview,resultedinover100mil-lion people knowing that the airline sup-posedly broke Dave Carroll’s guitar. DaveCarrollandhiscareerareheadingupthanksto his creative response and the power ofsocialmedia.TheairlineneverhadachanceagainstDave.Itisbetterforminingcompa-niestounderstandsocialmedianowratherthanwaituntilitisusedagainstthem.

Itisimportanttodeveloppoliciesonthe usage for social media sites andblogsinordernottorunafoulofsecuri-ties legislation. The question of usingsocial media was addressed to the BCSecurities Commission. It did not seeanythingwrongwithusingFacebookorother social media sites, providing nomaterial information was disclosedprior to a regular news release.According to Martin Eady, Director,CorporateFinance,BCSC.“Theprinci-ple on social media websites is for thegeneral public to understand what isposted by the company and what iswritten by others.” The point here isthat, “Theprincipleofdisclosureisthesame for every medium: the generalpublicshouldunderstandwhat ispost-edby thecompany.What iswrittenbyothersisoutsidethecompany’scontrol.Companies need to understand thisparticularriskinrelationtoanyinvolve-menttheyhavewithsocialmediasites.”

Eadystates,“Thereisnoresponsibil-ity to a company for what others sayabout your company. That does notmean you have to ignore false or irre-sponsiblestatements. Ifsuchastatementis posted on a company social mediawebsite,whichallowscontributionsfromindividuals, the company may not havetheability to remove that specific state-ment. In that instance, the companycouldinsertawarningortrytoblockordisable the individual who made thestatementfromfurtherwebsitepostings.”

Eady refers to National Policy 51-201Section6.12,ontheBCSCwebsite,whichsuggests, “Do not participate in, host, orlinktochatroomsorbulletinboards.Yourdisclosure policy should prohibit youremployeesfromdiscussingcorporatemat-tersintheseforums.”Thiswillhelptopro-tect your company from the liability thatcould arise from the well-intentioned, butsporadic, efforts of employees to correctrumoursordefendthecompany. CMJ

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|AerialPhotography

KBM Resources Group ofThunderBaydidnotstartoutasa company serving the miningindustrybut,wasinfactcreated

asafirmtoprovidedigitalaerialphotogra-phyandGISmappingfortheforestindustry.

Sinceitsinceptionin1973,however,thecompany has grown beyond the forestindustryandnowextendsitsaerialservicestoincludeminingandexplorationcompa-niesworkinginNorthernOntario.

Overtheyearsthecompanyhasnatu-rallykeptpacewiththelatestintechnolo-gy,butasoneofitspartners,PeterHiggelke,says, KBM is not necessarily technologi-cally driven but, is a team of “practicalinnovators looking for ways to help ourclientsoperatemoreefficiently.”

SohowdoesaforestindustrycompanyturnitsdigitalaerialphotographyandGISmapping services from trees to findingmineralsfortheminingindustry?

Wellactually,thejumpwasnotasbigasonewouldthink.AccordingtoHiggelke,itbasically came down to KBM’s core phi-losophy: to provide clients with the ser-vicestheyneed,whentheyneedthem.

Company partner Laird Van Damme

said, “We started doing forest inventoriesandrelatedservicessimplybecauseourcli-entsneededthem.Themostefficientwaytocompletethoseassessmentswastouseaerialphotography.So,weboughtanairplane…”

Overtheyearsthefirmhasundertakennumerous forest inventories, specializedfield studies and environmental impactassessments in support of forest/land useplans.Theseinventories,studiesandassess-ments relied heavily upon data acquiredwithremotesensingtechnology(aerialpho-tographyandsatelliteimagery)organizedinaGeographicInformationSystem(GIS).

Although the technology was devel-oped while operating within forestry, italso has applications in other industries,like mining. Aerial photography is usedintheminingsectoratmanystagesinthedevelopment sequence, including explo-ration and environmental assessment.Mapscanalsobegeneratedtocreatedigi-tal elevation models of pit and stockpilefeaturesduringactiveminingandtohelpmonitormineclosureprogress.

Thecompany’sexpertise(andthetech-nologythatfuelledit)grewfrommappingand basic analytical techniques to

advanced modelling. As Sales ManagerAndrewKanesays,it’sliketheylookedupfrom their desk one day and found thattheyhadauniqueskillset.

“We realized that we were offering alevelofservicethatnobodyelsewasoffer-ing,”Kanesaid.

KBMrecentlyexpandeditsaircraftanddigitalphotographycapacitybyacquiringa twin-enginePiperSeneca IIanda sys-tem of hardware and software that canprocessterabytesofdataacquiredduringeach flight mission. These data can beused to generate images and map prod-uctswithinseveraldays.

“Not only can we get the data (aerialphotographs) faster and more economi-callythanmanyothercompanies,wealsoprovideadvanceddataanalysisandthingslike ortho-rectified mosaics that can beused for exploration, environmentalassessments,andplanning,”saidKane.

With the system, KBM can acquireimageswithupto8cmresolutionprovid-ing sub-metre horizontal and verticalaccuracies, allowing extremely accuratecomputer mapping even before groundsurveyingbegins.

Looking Downon new business

Staff Report



Currentlythecompanyisintheprocessofevaluating new sensors like colour infraredandLightDetectionandRanging(LiDAR),whichiswidelyusedfordigitalelevationandterrainmappingintheminingsector.

One of the company’s greater assets,however, is its “good old-fashioned” localknowledge of the social, economic andenvironmental context of NorthernOntario.Inadditiontoastaffofprofession-alswithadvanceddegreesinnaturalscienceprograms, the firm maintains a large net-workofinterdisciplinaryprofessionals.

“Localknowledgeisabenefittoourcli-entsfromeveryangle,”saidVanDamme.“Itmeans everything including knowing thebesttimestoflytogetthedata,knowingwhotogotoforcertainassessmentsandunder-standingtheassessmentandpermittingpro-cessfromthegovernmentalagencypointofview.Ultimatelyitmeansfasterdataanddataanalysisatlowercoststoourclients.”

DataacquiredfromKBM’saircraftcanbeusedtocreatevalueaddedproducts inplanning, permitting and environmental

assessment support phases of a develop-ment. These data can be combined withotherdatatoproducethematicmaps.Thecompanyalsobuildsnoveldecisionsupportsystems in a GIS environment to harnessexpertknowledgeofvariousecologicalsys-tems(e.g.wateryield,biodiversity,carbonpools) with current and expected condi-tions associated with planned develop-

ments. These assessments and maps areusedinopenhouses,newslettersandplansto inform shareholders, stakeholders andthepublicatlargeaboutproposeddevelop-mentactivities.

Aerial photography may have startedwith forestry for KBM Resources but itcertainlylookslikeitwillbefocussingonmininginthefuturetoo. CMJ

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|FleetManagement

Since the first underground fleetmanagement system was intro-duced roughly two decades ago,such systems have seen ups anddowns in industry popularity.

Manymajorundergroundoperationshaveatonetimeoranothersoughttobenefitfromthe transparency and detailed reporting offleetmanagementsystems,butinthedecadefollowing the introduction of ModularMining Systems Canada Ltd’s DISPATCHunderground system, installations surgedandanundergroundfleetmanagementmar-ketwasborn.Inthelate1990s,undergroundsystem sales were keeping pace with theiropen-pitcounterparts.

Withinafewyearsofthisboom’speak,however, the demand for undergroundfleet management declined almost asquickly as it had risen. The decreasedinterestinminemanagementsoftwareby2002ledmanyundergroundoperationstoadopt voice production tracking systems.Becauseseveralmineshadalreadysetupcontrolroomsfortrackingandreports,thetransition to voice systems was relativelyeasy.Whileundergroundmineshavecon-tinued to adopt new technologies since2002 in other areas, the adoption rate of

The uptake of new technologies in underground mining has been historically sluggish. Indeed, many global suppliers of mining technology that service both open-pit and underground mines have entered into the underground fleet management space long after their open-pit deploy-ments. Underground sites generally make up a smaller portion of the clientele of fleet man-agement solution providers. This is not to say that underground mines are less developed or less efficient than open-pit mines; rather, this suggests that managers and shareholders in the mining sector—especially in the underground realm—should be acutely aware of advances in mining technology and the factors that slow their integration into operations.

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computerizedfleetmanagementhasbeencomparativelyflatinthelastdecade.

Thereisageneralruletoobservewithinthiscycleofpopularity:miningtoolsfollowtrends. Whether this involves haul truckdevelopment or mining systems, industryopinionfluctuatesinwhatitdeemsneces-saryoreffective.Giventhatthedemandforundergroundfleetmanagementsystemsiscurrentlylowerthantheopen-pitsectorforpreviousperiods,itisonlyamatteroftimeuntil the cycle pushes underground fleetmanagementsoftwarebacktowhereitwasinthe1990s.Areviewoftheadaptationoftechnologyinotherfields,suchasautoma-tion,showsthattechnologiesdoinfactfol-lowcyclesofpopularity.

So what can substantiate the idea of acyclical underground fleet managementmarket? The first wave of undergroundfleet management was ushered in by thepromiseofundergroundhaulageoptimiza-tion.Whatminingtechnologycompanieshave learned, however, is that significanteffort is required to evolve systems from

haulageoptimization—whataddsthemostvalue intheopenpit—totheprocessopti-mizationrequiredbyundergroundmines.Haulageoptimizationproactivelyenhancesproduction on an assignment-by-assign-ment basis using real-time “snapshots” of

equipment location, status, etc.Undergroundprocessoptimization,ontheotherhand,requiresmuchmorethanjustinstantaneousinformation.

Decision making is different under-ground. Managers must consider the

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due to completion of

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|FleetManagement

statusofeachlocationaswellastheirremainingtonnage,com-binedwithanyplannedquantitiesofwork.Onlywithanaccurateknowledgeofthesecantheymakebetterdecisionsthatincreaseproduction.Thisistruenotonlyforhaulagedecisionsbutalsofordrilling,blastingdigging,andsupporttasks.AlthoughhaulageviaLoad-Haul-Dump(LHD)loadersisvitaltoundergroundminingsuccess,problemsassociatedwithotherprocesses,suchasdrilling,canencumbertheperformanceoftheLHDFleet.

Anundergroundfleetmanagementsolutionmusttracksev-eralprocessesinordertomatchtheincreasedproductionofitsopen-pitcounterpart.Forexample,thethroughputofaBlockCaveminecanbeoptimizedbyaddressingissuessurroundingtheLHD’sactivities(suchasminingtoplan)aswellasthesec-ondarybreakingunitsusedtoclearuphung-updrawpoints.Byresponding faster to down drawpoints, drawpoint availabilitygoesup.Withthisincreaseddrawpointor“face”availability,theLHDutilizationandtonnageoutputincreaseaswell.

Recognizingandcontinuallyevaluatingthelistofprocessesinundergroundmining,ourmodulardesignedundergroundsystemcanbebuilttomeettheprocessoptimizationneedsofallunder-groundmines,includingthetrackingofhaulageandnon-haulagemachineryalike.Thesystemensuresthatminingactivityfollowsaplanwhenoneisavailable,anditautomaticallygeneratesaplanforequipmentrequiringone.Veryfewminesschedulebeyondtheirdigandhaulagefleets;therefore,itbecomesimportanttogenerate

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|FleetManagement

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real-time plans for equipment performing upstream and down-streamprocessestotheequipmentthathaveplansavailable.

Theprocessoptimization featuresaredesigned tomeet theneedsofblockcaveandopenstopingminingmethods.However,theycanbecustomizedtoaccommodatemultipleundergroundminingmethodsandbothupstreamanddownstreamprocesses. Inadditiontothetrendtowardsprocessoptimizationinunder-groundmining,thereisashifttowardspredictivemaintenancephilosophies, such as reliability-centered maintenance (RCM)andremoteconditionmonitoring.Thishasalreadyfactoredintothegrowinguptakeofreal-timemaintenancemanagementsys-tems.Consideringtheadvantagessurroundingprocessoptimi-zation,itisasafebetthataresurgenceinpopularityofunder-groundfleetmanagementsystemsisunderway.

It is important to realize that several parties stand to benefitfromthereturnofthistrend,notjustfleetmanagementproviders.Theadoptionofmoreproactiveundergroundfleetmanagementsystemsisalsogoodforothertechnologyadaptation.Thisrangesfrom simple things like on-board sensor systems all the way tomore elaborate communication technologies like tele-remoteoperation and autonomous mining equipment. Such advances,withfleetmanagementsolutionsattheforefront,willmakeunder-groundminessafer,smarterandmoreproductive. CMJ

*Information for this article provided by Stephane Cantin, Product Manager, DISPATCH Underground, Modular Mining Systems Canada, Ltd.


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http://www.gearcentre-offhwy.com/

CANADIANMining JournalC A N A D A ’ S F I R S T M I N I N G P U B L I C A T I O N

CANADIANMining JournalJanuary 2011www.canadianminingjournal.com

Discovering

Silver, Copper, Zinc, Lead, Nickel, Moly, Tungsten, much more…

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YUKON GOLDSZ&PlusOther sitesNorth of 60And Mining in British Columbia

C A N A D A ’ S F I R S T M I N I N G P U B L I C A T I O N

April 2010


NEW WELLSsolve sticky problems

IMPERIAL OIL’SKearl Project takes shape

TAILINGS PONDSget new rules

Oilsands getspecial attention from all directions

CANADIANMining Journal

WellDon


January 2010


OMA WORKS HARDto keep its

members informed

of what’s happening

in government and industry

MADE IN ONTARIO

mine cars getglobal attention

TRUCKS & TIRES

Two keys to hauling

YUKONMiners show renewed interest in

historic properties

The New

CANADIANCANADIANMining Journal




August 2010

“TOP 40”

MINING COMPANIES LIGHT THE WAY


A look at Canada’s

better performers


May 2010



COAL MINERSgear up for busier timesPOTASH MINEScontinue to grow in Saskatchewan

DEEP DRILLINGdemands special care

RENEWING THE

CoalLegacy of


CANADIANMining JournalOctober 2010


Digging DeeperManitoba miner goes after more reserves


February/March 2010


MINING PLAN KEEPS

NATURE IN MIND

Quarry Design

Includes Wetlands

PDAC’s e3 PLUS

Program leads the world

SITE SAFETYIt’s a must!

HOT PROBLEMVaults of arsenic get frozen

in rock at Giant gold mine

COOL FIX FOR

CANADIANMining Journal CANADIANMining Journal

C A N A D A ’ S F I R S T M I N I N G P U B L I C A T I O NCANADIANMining JournalSeptember 2010


&RED-HOT RARE

Demand spreads for unique ‘red’ marble from Cape Breton quarryPlusQuebec mines continue growing and moving forward

CANADIANMining JournalCANADIANMining Journalwww.canadianminingjournal.com


June/ July 2010

A look at oneof the world's topmining companies

Hot TimesAT RIO TINTO IN CANADA



BEYONDBORDERSAn in-depth look at Canadian mining companies abroad

Plus:A Global Reviewof CSR practices

REACHING OUT

December 2010www.canadianminingjournal.com December 2010www.canadianminingjournal.com

New Mining Technology

SUMMER 2010

FUTURISTIC SOLUTIONS

A look at innovation and its impact on Canadian mining

Products to helpproduce profits

Published by




2011Buyers’ Guide

November 2010November 2010www.canadianminingjournal.comwww.canadianminingjournal.com

CA

NA

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ININ

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2011 B

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’ GU

IDE

Mining and Mineral Processing News

Since 1882 Canadian Mining Journal serves the operations segment

of the Canadian mining industry. It provides readers with updates on the industry along with new legal, financial, safety and CSR obligations.

CMJ also highlights new products, methods and technologies used to increase the financial, social and environmental returns from mining and mineral processing. From new CSR standards to new big-bucket loaders, CMJ keeps you up to date

with developments in Canadian mining.

To subscribe, contact Bona Lao: 416-442-5600 ext. 3552 or [email protected].

To advertise in Canada’s only ABC Audited mining magazine, (10,080 circulation,

ABC Audit June 2010), please contact the Publisher, Robert Seagraves, at 416-501-6891, 1-800-268-7742 ext. 6891 or

[email protected].

You can visit us at our website: www.canadianminingjournal.com to read the Daily Mining News or browse past issues in pdf format.

C a n a d a ’ s F i r s t M i n i n g P u b l i c a t i o n


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Agence...................Titre........................ Annonce MineraiNo. d’annonce........ AM-Pont-011 Format.................... 8,125” X 10,875”Couleur................... 4CClient..................... ArcelorMittalPublication............... Northern MinerDate de parution....... Winter 2010Contact................... Michelle Turbide............................. 285-1470 poste 236

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Boldness changes everything

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sites, visit transformerlavenir.com

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|Dewatering



Almost every mine encounterssome degree of water prob-lems,andcontrollingorgettingrid of them requires far moreskill, and equipment, than

most people know or understand. After all,most photos of pits, tunnels or shafts focusprimarilyonpeopleandmachinesworkingindarkordustysurroundingsbutrarelydotheyshowrivuletsorpondsandsometimessmalllakesthatoftenhamperminingoperations.

Infact,controllingwaterissuchabigissuefor mine owners and operators, particularlyduring Care and Maintenance, that mostcompanies include Water ManagementSpecialistsaspartof theirOperations’Teamto help ensure that mine structures, bothopen-pit and underground, are safe fromfailures caused by freshet or other sourcesunearthedduringdiggingorblasting.

“Springing a leak” is no laughing matterandittakesmorethanthefabled“LittleDutchBoy”whousedhisfingertoplugaholeinadyketostopwaterfromflowing,andwhenithappensinamine,ittakesagreatdealmoreskill and perseverance to stop it and, moreimportantly,getridofit!

With so much at stake, miners cannotaffordtohaveprofitswashedawayandthat’swhy pumps and the technology associatedwith dewatering have become such an inte-gralpartoftoday’smines.Wateriscertainlyanessentialingredienttomostminingopera-tions, but like everything else there’s a rightand wrong place for it, and in the mine iscertainlythewrong place.

Flooding and collapses are the obviousextremeswhenitcomestowater-relatedacci-dents,butotherissuesassociatedwithwaterthat demand equal attention involves theenvironment and the damage that can becausedbywaterthathascomeincontactwithhighlyacidicminerals.

Keepingpropertiesashigh-and-dryaspos-sible is paramount to successful mining, butgettingthemtothatpointalsorequiresacareand understanding of the consequences ofpumpinganddischargingcontaminatedwaterbackintotheenvironment.

Simply sucking trapped and often stag-nant or otherwise “dangerous” water frommines intoneighbouringwaterwaysorontoadjacent properties is not acceptable, norlegal, but thanks to new technologies andhighly efficient filtration systems, today’sdewatering systems meet environmentalstandardsandmoreover,helpmakethecom-paniesthatusethemresponsibleoperators.

As every mine owner and operator knows,beingasociallyresponsiblecorporateneighbourisalmostmandatory toconductingbusiness incertainareasand,infact,withoutdemonstratingCSR,manycompaniesarefindingitdifficulttobeacceptedinmanycommunities.

Dewatering a mine site, regardless if itinvolvesatricklecomingoutofagarden-sizehoseoragusherblastingoutofhugehosesorpipes,callsfortherightequipmenttohandlethe job properly and responsibly, and theunits featured on the following pages arewhat’snewindewateringtechnologytohelpmakeminingsafer.

DewateringBy Russell Noble

SaveS the day

Metso

Reduced Power & Media Consumption

Fine Grinding Technology

Vertimill® Grinding Mill

Stirred Media Detritor

metso.com – email: [email protected]

Solid recovery Stirred milling technology featuring VERTIMILL® & Stirred Media Detritor

You demand lower operating costs, but you can’t sacrifice your product recovery. Metso stirred mills deliver outstanding efficiency, finer grinding sizes and reduced power and media consumption so you get the results you need. With enhanced recovery, reduced operating costs and improved revenue, you can rely on Metso’s equipment and reputation. They’re both rock solid.


www.metso.com


Massive unit handles huge volumesDiEMME’S GHt 2500dewatering filteristhelargestunitofitskindintheworld,weighingmorethan100tonnes.

The unit is specifically designed andfabricated for high-speed pressure filtra-tiononmineralconcentratesandtailings.Becauseofitslargechambervolumeandfiltration area, it is ideal for dewateringmassive quantities of suspension whilereachingverylowvaluesofresidualmois-ture. A special geometry of the filteringelementsresultsinaveryhighcakedry-ingefficiencyusingcompressedair.

Theunitshownhereiscomposedwithamixedplatepackof89platesforatotalfiltrationareaof821m2.TheGHT2500iscapable to dewater iron ore concentratewithacapacityofupto200t/hrandreach-ingacakeresidualmoistureof7-9%.

For more information contact:www.diemme-spa.com/filtration

Cost efficient mine pumpThe GEHO-APEXS mine dewateringpumpisapositivedisplacementhosedia-phragmunitdesignedformovingfluidsathighpressuresandinlargevolumes.

Duetoitsdesign,thepumprunsat3to5strokesperminute,resultinginsignifi-cantlylesscheckvalvecycles,lessimpacton valve closure and a slower speed ofoperation...

A hose installed inside the tube pro-tectsthepump’sinternalpartsfromabra-sivefluidsresultinginsavingsinwearandmaintenance costs and an improvementinavailabilityandreliability.

For more information contact:www.geho-apexs.com

DewateringProducts|

Reduced Power & Media Consumption

Fine Grinding Technology

Vertimill® Grinding Mill

Stirred Media Detritor

metso.com – email: [email protected]

Solid recovery Stirred milling technology featuring VERTIMILL® & Stirred Media Detritor

You demand lower operating costs, but you can’t sacrifice your product recovery. Metso stirred mills deliver outstanding efficiency, finer grinding sizes and reduced power and media consumption so you get the results you need. With enhanced recovery, reduced operating costs and improved revenue, you can rely on Metso’s equipment and reputation. They’re both rock solid.

http://www.diemme-spa.com/filtration

http://www.geho-apexs.com

www.technosub.net


|DewateringProducts

Answering demands for dewatering solutionsMetso’sverticalplatepressurefilter(VPA)hasbeendevelopedtomeetincreasingdemandsforhigherefficiencyandautomationinindus-trialandminingdewateringapplications.

ThenewVPAisaheavy-dutymachinesuitable for metallic minerals, industrialminerals, and coal and tailings. Main fea-turesincludelightweightconstructionwithmachinedpolypropylenefilterchambers,aload cell weighing system integrated to a“smart”PLC-controlsystemfor fullyauto-maticfilteroperation,andacompactdesignforareducedspacerequirement.

Additional design features include aslurrythickenerwithautomaticdischarge,afeedslurrybuffertank,flowanddensitymetres for filter feed, slurry feed pump,and a product weighing system for pro-ductionmonitoring.

Metsoalsooffersafullrangeofotherprocesssolutionsfordewateringofslurryconcentrates and tailings from gravityseparationwithclarifyingandthickeningtohigh-pressurefiltrationat100bar.

Products include Spiral Dewaterers,InclinedPlateSeparators,andtheVPAplateandframePressureFiltersandTubePress.

For more information contact:www.metso.com.

Improved in-line pump assemblyFLSmidth’s new pumps, slurryMAX,millMAX,andgravelMAX,arethebiggestin-lineassembliesinthecompany’scom-pletelineofminingpumps.

Eachpumpfeaturesashaftthatisdirectlyconnectedtoagearreducerwhichinturnisconnectedtoanautomaticallyadjustingfluidcoupler, thento themotorandallpreciselyalignedonacommonsteelbase.

ThemanufacturercommonlyusesFALKgearreducersandVOITHfluidcouplings.

For more information contact:www.flsmidth.com

JOIN IT

STAB ITLUBE IT

installation is as easy as:

905.884.7444 www.victaulic.com/installationready

TIGHTEN IT

INSTALLS EvEN fASTEr

• Fast, easy pipe connections.

• No need to disassemble.

• No loose parts to drop or lose.

• Minimizes pinched gaskets that cause costly air leaks.

QuickVic® style 177 installation-Ready Flexible Couplings

http://www.metso.com

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Job Prev. UsersFilename Last Modified

Client

Bleed

Trim

Live

Scale

Cont

ent

Fonts & Placed Graphics Inks

072-003 D 072-003 D_Dont Buy A Pump 8.25x11.125.indd 1/6/09 9:03 AM MSS2/MSS1

Gorman-Rupp

None

8.25 in x 11.125 in

None

None

Family StyleHelvetica Neue (65 Medium, 95 Black, 75 Bold)

Name ColorSpace Eff.Res.impeller.psd (Up to Date; CMYK; 277 ppi), PumpPeople™/1L>Canada_REV.eps (Up to Date)

Cyan Magenta Yellow Black

None

Setu

pNo

tes

Canadian mine dewatering pump applications are severe and require reliable, dependable tough pumping equipment. A fluid guzzling beast capable of dewatering any area of your mine any time of day.

Gorman-Rupp pumps work hard supporting your bottom line pumping sludge, tough solids, working around the clock so you don’t have to.

Look at it this way, you’re not buying a mine dewatering pump….you’re buying a piece of sanity!

Gorman-Rupp, the right pump for your job.

Gorman-RuppofCanadaLtd.•70BurwellRoad•St.Thomas•OntarioN5P3R7Tel:(519)631-2870•Fax:(519)631-4624•[email protected]•www.grcanada.com

©2008Gorman-RuppofCanadaLimited.Gorman-RuppofCanadaLimitedisanISO9001:2000RegisteredCanadianCompany.

www.grcanada.com

http://www.grcanada.com


http://www.grcanada.com


Underflow thickener pump Watson-Marlow’sSPXunderflowthickenerpumpisaunitdesignedtohandleavarietyofharshmaterialsincludingabrasiveheavymetalslurriesandcorrosivecyanide,coppersulphateandmethylcellulose.

TheBredelSPXhandlesthesemateri-alswithoutdamagetotheworkingpartsofthepump.Theperistaltichosepumpsare virtually maintenance free with noexpensiveimpellers,linersormechanicalseals to replace, no check valves to clogandnorotorsandstatorstowearout.

In addition, millions of gallons ofwatercanbesavedasthehosepumpcanhandle very high solids contents com-pared to centrifugal type pumps. As anadded bonus, this also eliminates therequirementtotreatthiswastewater.

The self-priming pumps accommodateflowratesfrom0.1microfilterto350gpmandcanwithstandpressuresupto232psi.Therearenointernaluniversal joints,valves,deadcorners, or glands to impede flow and thepumpsarereversibleforbackflushinglines.

Theycanalsorundryindefinitelywithdamageandprovideuptoa30’suctionlift.

For more information contact:www.watson-marlow.com

Submersible dredging pumpsDragflow’ssubmersibledredgingpumpsareunits designed for heavy-duty applications,especiallyforslurrywithabrasivesolids,andarecapableofpumpingasmuchas70%sol-idsbyweightupto5”diametersolids.

The portable design of the pumpsmakesthemidealformountingonexcava-torsortobeincorporatedintoabargesys-tem that can then pump water and sedi-mentslurryintoaholding/drainofftankorgeo-tubefordryingandthenhaulage.

Theprocesshelpsimproveoverallpro-ductivitypartiallyduetothedryhaulageofthesedimentmaterialcomparedtohaulingheavyslurryfromtraditionalmethods.Thepumpsaredesignedwithagitatorsandcut-terstoallowtheequipmenttopumplargequantitiesofsolidseveninthepresenceofverycompactsoils.

Dragflow’s dredging pumps can performhigh-depthdredgingoperationsupto100mand150 m for deep dredging operations and canpumpsandandgravelupto120mmdiameter.

FormoreinformationcontactDragflowat:[email protected]

|DewateringProducts

http://www.watson-marlow.com



www.jennmar.com


6,825,000 Meters of leaky feeder cable

6,500 Kilometers of communication

& safety coverage

400 Mine & Tunnel sites worldwide

52Countries

1Unbeatable supplierof communication& safety solutions

It’s easy to see why Mine Radio Systems are found in

hundreds of mines and tunnels around the world. Nothing

is as rugged, reliable and responsive. Nothing has more uses

in more mines and tunnels around the world. And nothing

does a better job of improving productivity and safety.

Better still, you can expect a custom solution, featuring the

right combination of two-way voice communication, video,

automated equipment control, high-speed data transfer,

underground internet capability or emergency evacuation.

Get started today by visiting our online resource centre

for the latest information on the many ways MRS

solutions can improve the safety and productivity of your

mining or tunneling operations.

Mine Radio Systems Inc

www.mineradio.com

A “Monster Pump”technosub has just completed production of its “MonsterPump,”aproductthatcanhandle1000gallonsperminuteat1700feetofheadpressure.

Thismassiveunitispoweredbya700Hpmotorandfea-turesinternalcomponentsmanufacturedfromduplexstain-lesssteelinordertowithstandthehardconditionsassociatedwithminedewatering.

TheseTechnojethigh-pressurepumpsaredesignedtobecon-nectedtoanundergroundsumpwherewaterisfedbysubmersiblepumpsandthentothesurfacetailings.

Formoreinformationcontact:www.technosub.net

http://www.mineradio.com

http://www.technosub.net


www.weirminerals.com


|NewProducts

Tank wraps protect against freezingPowerblanket announces the availability of a variety of tankwraps designed to heat and maintain the temperature in largeholdingtanks.

Thewrapscreateabarrierofinsulatedwarmthtokeepfluidsfrom freezing and viscous materials flowing. The blankets areflexibleenoughtocoveranythingfrom20-poundpropanetanksto30,000gallonwatertanks.Theyaresecuredwithanylonstrapandmagneticsystem.

Power configurations to the blankets are available in either120Vor240V.

Forfurtherinformationcontact:www.powerblanket.com

Environmentally friendly dozerCaterpillar’snewD8Ttrack-typedozerfeaturesanenginethathasbeendesignedwithaftertreatmentsolutionsincludinganinnovativeintake-air-managementsystemtomeetenvironmentalstandards.

The engine uses optimized turbocharging with electronicallycontrolledfuelinjectionthatpreciselyshapeseachcombustioncyclethroughmultiple-injectionfueldelivery.Thecontrolofcombustionparametersyieldscleanercombustion,steadypowerinalloperatingconditionsandimprovedfuelefficiency.

Anexhaustreductionsystemcontinuallydivertsandcoolsasmallvolumeofengineexhaustgasesandthenreturnsthecooledgasestothecombustionchamber.Thisprocessreducescylindertemperatures.

Formoreinformationcontact:www.cat.com

Underground diesel scoopAdiesel-poweredLHD(load,haul,anddump)scoopfeaturingaUn-A-Trac488XPpowerpackthateliminatestheneedforbat-teriesandbatterymaintenanceisnowavailablefromBucyrus.

Thescoop’spowerpackhasaventrateof7500cfmforacleanerworkingenvironment,andtheparticulateindexof4500cfmreduc-esemissionsbyover66%comparedwithconventionalmodels.

Themachine’sengineandexhaustsystemandergonomicallydesignedcabprovideacomfortableenvironmentfortheoperator.

The scoophasa lift capacityof14.5 tonnesanda152.4 cmverticalwhichmeans itcandumpontoelevatedtransferpointswithoutadditionalequipment..

Formoreinformationcontact:www.bucyrus.com

Drilling rig for narrow tunnelsAtlas CopcoannouncestheavailabilityofitsBoomerT1D,aface-drillingrigdesignedfornarrowtunnelsanddrifts.

The new machine features a number of improvementsandoptionsincludingamorepowerfulandcleanerenginefor higher tramming speeds and a new boom suspensionsystemtohelpreducestressonthemachine.

A more ergonomic and comfortable cabin with bettervisibilityispartoftheoptionalextras,andserviceabilityhasbeen improved with more accessible service points. Theframeisalsostrongerandhasalowercentreofgravityandhasanoversizedarticulationtocopewithdemandingoper-atingconditions.

Formoreinformationcontact:www.atlascopco.com

http://www.powerblanket.com

http://www.cat.com

http://www.bucyrus.com

http://www.atlascopco.com

ProfessionalDirectory

www.ecosolutions.com

Leading manufacturer offor the mining industry.

camp wasteincinerators

Water treatment specialists for the mining industry.

» Clean technologies for metal recovery and sulphate removal

» Comply with regulations and reduce environmental liabilities

» Lower life cycle costs

www.bioteq.ca1-800-537-3073

From diamond tools to equipment and accessories, Fordia offers global solutions for drilling contractors.

T 514.336.9211TF 1.800.768.7274

www.fordia.com

®

Protect and seal busy load zones!

Rely on Richwood for heavy duty material containtment solutions.

www.richwood.com1.800.237.6951

List in the Canadian Mining Journal’s Professional Directory

Contact: ROBeRT SeAgRAveS MiChAel WiNTeR 416-510-6891 Fax: 416-510-5138 416-510-6824 Fax: [email protected] [email protected]

Cost $265.50 per issueIncludes listing in our online professional directory –

increases your presence on the web!

Don’t miss this opportunity to grow your business in 2011.

Saving MineS MillionSin energy coStS

Mines of the future will be going deeper, resulting in higher costs for infrastructure, ventilation and energy. How your mine addresses these future challenges will separate your company from the rest of the mining industry.

BESTECH, one of Canada’s leading firms specializing in engineering, automation, software development and energy management has created NRG1-ECO. NRG1-ECO (Energy Consumption Optimization) is a mine-wide energy management system that can save mines millions of dollars in energy costs per year. NRG1-ECO can be applied to automated equipment and processes such as compressors, pumps and ventilation to significantly reduce energy consumption.

NRG1-ECO was developed with an open architecture so that it will work with technology already in use at any mine. Integration is at the core of NRG1-ECO and its ability to incorporate with new or existing mine technology offers mines, old or new, the opportunity to realize significant energy savings.

The NRG1-ECO sys tem can be customized to to reflect each mine’s needs and protocols in order to leverage the highest ROI for each

mine site.

This year, NRG1-ECO was installed at Vale’s Coleman Mine and Xstrata Nickel’s Fraser Mine, both in Sudbury, Ontario, Canada.

“We worked together with BESTECH on what was needed in the industry and they’ve completed the development of NRG1-ECO’s Ventilation-On-Demand management tool for us,” says Cheryl Allen, Chief Engineer - Ventilation, Vale Mines Mill Technical Services, Canadian Operation.

A mine ventilation system usually operates at peak capacity 100 per cent of the time. NRG1-ECO’s VOD (Ventilation-On-Demand) module enables the mine to instantly control the ventilation system’s air flow to when and where it is needed. This allows a mine to reduce its ventilation costs by as much as 30 per cent, which represents significant savings given that ventilation costs make up almost 50 per cent of a mine’s energy costs. BESTECH’s NRG1-ECO technology is attracting world-wide attention from other mining giants, including North America’s fastest growing senior gold producer, Goldcorp Inc. “We looked at two different systems. It seemed BESTECH was offering a complete package from ground up. We’re hoping to go ahead with NRG1-ECO in a two-stage approach. First, have the system up and running on two levels in the Hoyle Pond Mine in Timmins and if that proves to be satisfactory, then we will expand it to the rest of the mine,” says Imola Götz, Chief Engineer, Hoyle Pond Mine, Goldcorp.”

Assistance with Energy-Efficiency Grants and Rebate applications is available to mines for both the initial NRG1-ECO site assessment and commissioning to help leverage increased profitability and savings.

“We worked together with BESTECH on what was needed in the industry and they’ve completed the development of NRG1-ECO’s Ventilation-On-Demand management tool for us.”

Cheryl Allen, Chief Engineer - Ventilation, Vale Mines Mill Technical Services, Canadian Operation.

To find out more information on NRG1-ECO, go to www.bestech.com/NRG1-ECO.

Follow BESTECH on

NRG1-ECO Web Based HMIThe Web Based HMI allows remote access to standard process control HMI. Shown here is a VFD Fan under cascading closed loop PID control.

Guy Faubert (BESTECH Electrician) and Paul Huffels (BESTECH Safety Supervisor) installing a rack-mounted IZC on the 4550 level at Vale’s Coleman Mine. The Intelligent Zone ControllerTM (IZC) is the brains of the underground network and one of the key components of the NRG1-ECO system.

Marc Boudreau (BESTECH President & CEO), Sarah Paajanen (BESTECH Project Manager) and Cheryl Allen (Vale Chief Ventilation Engineer/Project Manager). Photo Provided by Vale.

w w w . b e s t e c h . c o m

Advertisers Index

Company page# Website Company page# Website Company page# Website

3M Canada............................................37 .................................. www.3m.caAEL .......................................................51 ..........www.aelminingservices.comArcelor Mittal ........................................53 ..................www.arcelormittal.comATCO Structure & Logistics .....................47 ............................www.atcosl.comAtlas Copco ...........................................21 ....................... www.atlascopco.caBarrick ...................................................9 .......................www.bebarrick .comBateman Technologies Corporation ..........50 ....................... www.bateman.comBBA ......................................................25 ..................................www.bba.caBESTECH ...............................................65 .........................www.bestech.comBest Glove.............................................35 ......www.bestglove-distributor.comBioteq ...................................................64 ..............................www.bioteq.caCattron ..................................................31 ..................www.cattrongroup.comConsolidated Mobile Cranes ...................64 .......................www.deckrane.comDiemme ................................................45 ....www.diemme-spa.com/filtrationDMC Mining Services ............................41 .................... www.dmcmining.comDumas ...................................................7 ..................www.dumasmining.comEBA ......................................................38 ..................................www.eba.ca

Eco Waste Solutrions ............................64 ..................www.ecosolutions.comEriez ......................................................42 ............................. www.eriez.comFordia Group ..........................................64 ............................www.fordia.comGolder Associates ..................................38 ........................... www.golder.comGorman-Rupp Pumps .............................59 .......................www.grcanada.comHCI Steel ...............................................34 .........................www.hcisteel.comHitachi ...................................................4 ................. www.hitachimining.comIce Field ................................................45 .................. www.icefieldtools.comIndustrial Equipment Manufacturing ........16 ..................................www.iem.caJennmar ................................................60 .........................www.jennmar.comLuff Industries .......................................50 ................. www.luffindustries.comManulift ................................................28 ...........................www.manulift.caMarathon Drilling Co ..............................43 ........... www.marathondrilling .comMetso Minerals .....................................56 ........................... www.metso.comMinasco Australia PTY Co ......................49 ................... www.minasco.com.auMine Radio Systems ..............................61 ......................www.mineradio.comNorseman Structures ..............................44 ....... www.norsemanstructures.com

Nuna Logistics .......................................36 .................www.nunalogistics.comOrica Mining Services ............................68 .......www.oricaminingservices.com Petro Canada Lubricants ..........................2 .....www.lubricants.petro-canada.caRedpath Mining .....................................24 ............... www.redpathmining.com Richwood ..............................................64 .......................www.richwood.comSMS Equipment .....................................6 ....................... www.smsequip.comSRK Consulting ......................................64 ................................www.srk.comStrongco ...............................................67 ........................www.strongco.comSustainable Development .......................45 ..............www.sdtc.ca/applicationsTechnology CanadaTechnosub .............................................57 .......................www.technosub.netThe Gear Centre .....................................51 .........www.gearcentre-offhwy.comTsubaki .................................................17 ............................ www.tsubaki.caVale ......................................................11 ....................www.vale.com/futureVictaulic ................................................58 ..... www.victaulic.com/installationreadyWeir Minerals NetherlandsvB.V. .............62 .................www.weirminerals.com

http://www.ecosolutions.com

http://www.bioteq.ca

http://www.fordia.com

http://www.richwood.com



http://www.3m.ca

http://www.atlascopco.ca

http://www.bateman.com

http://www.eriez.com

http://www.golder.com

http://www.hitachimining.com

http://www.icefieldtools.com

http://www.minasco.com.au

http://www.norsemanstructures.com

http://www.tsubaki.ca

www.srk.com

Saving MineS MillionSin energy coStS

Mines of the future will be going deeper, resulting in higher costs for infrastructure, ventilation and energy. How your mine addresses these future challenges will separate your company from the rest of the mining industry.

BESTECH, one of Canada’s leading firms specializing in engineering, automation, software development and energy management has created NRG1-ECO. NRG1-ECO (Energy Consumption Optimization) is a mine-wide energy management system that can save mines millions of dollars in energy costs per year. NRG1-ECO can be applied to automated equipment and processes such as compressors, pumps and ventilation to significantly reduce energy consumption.

NRG1-ECO was developed with an open architecture so that it will work with technology already in use at any mine. Integration is at the core of NRG1-ECO and its ability to incorporate with new or existing mine technology offers mines, old or new, the opportunity to realize significant energy savings.

The NRG1-ECO sys tem can be customized to to reflect each mine’s needs and protocols in order to leverage the highest ROI for each

mine site.

This year, NRG1-ECO was installed at Vale’s Coleman Mine and Xstrata Nickel’s Fraser Mine, both in Sudbury, Ontario, Canada.

“We worked together with BESTECH on what was needed in the industry and they’ve completed the development of NRG1-ECO’s Ventilation-On-Demand management tool for us,” says Cheryl Allen, Chief Engineer - Ventilation, Vale Mines Mill Technical Services, Canadian Operation.

A mine ventilation system usually operates at peak capacity 100 per cent of the time. NRG1-ECO’s VOD (Ventilation-On-Demand) module enables the mine to instantly control the ventilation system’s air flow to when and where it is needed. This allows a mine to reduce its ventilation costs by as much as 30 per cent, which represents significant savings given that ventilation costs make up almost 50 per cent of a mine’s energy costs. BESTECH’s NRG1-ECO technology is attracting world-wide attention from other mining giants, including North America’s fastest growing senior gold producer, Goldcorp Inc. “We looked at two different systems. It seemed BESTECH was offering a complete package from ground up. We’re hoping to go ahead with NRG1-ECO in a two-stage approach. First, have the system up and running on two levels in the Hoyle Pond Mine in Timmins and if that proves to be satisfactory, then we will expand it to the rest of the mine,” says Imola Götz, Chief Engineer, Hoyle Pond Mine, Goldcorp.”

Assistance with Energy-Efficiency Grants and Rebate applications is available to mines for both the initial NRG1-ECO site assessment and commissioning to help leverage increased profitability and savings.

“We worked together with BESTECH on what was needed in the industry and they’ve completed the development of NRG1-ECO’s Ventilation-On-Demand management tool for us.”

Cheryl Allen, Chief Engineer - Ventilation, Vale Mines Mill Technical Services, Canadian Operation.

To find out more information on NRG1-ECO, go to www.bestech.com/NRG1-ECO.

Follow BESTECH on

NRG1-ECO Web Based HMIThe Web Based HMI allows remote access to standard process control HMI. Shown here is a VFD Fan under cascading closed loop PID control.

Guy Faubert (BESTECH Electrician) and Paul Huffels (BESTECH Safety Supervisor) installing a rack-mounted IZC on the 4550 level at Vale’s Coleman Mine. The Intelligent Zone ControllerTM (IZC) is the brains of the underground network and one of the key components of the NRG1-ECO system.

Marc Boudreau (BESTECH President & CEO), Sarah Paajanen (BESTECH Project Manager) and Cheryl Allen (Vale Chief Ventilation Engineer/Project Manager). Photo Provided by Vale.

w w w . b e s t e c h . c o m

http://www.bestech.com/nrg1-eco

www.bestech.com


By Normand Champigny

Normand Champigny, Senior Consultant, PwC Americas’ Mining Centre of Excellence

Cutting costs without cutting corners: Your long-term growth strategy depends on it

Over the past year, the prospects formining companies have improvedwiththemarket’srecoveryfromthe

global economic crisis. Now, a strongdemandforcommoditiesisleadingmanymining executives to loosen their pursestringstofocusongrowth.

ArecentPwCreportfoundmanymin-ingcompaniesareplanningformoderateor aggressive growth over the short tomediumterm.Withtherecession’simpactstill a recent memory, however, miningexecutives cannot afford to lose sight oftheneedtoalsocutcosts.

While production volumes need toincrease to meet rising demand, miningcompanies should make it a priority toalso reign in unnecessary spending andreduce capital costs of new investments.Thiswouldputtheminabetterpositiontogrow,andkeepbalancesheetshealthierinlightofastilluncertainfuture.

Butdoingso iseasiersaidthandone.The following shows why traditionalmethodshavehistoricallyfailed,andwhatminingcompaniescandotomakelastingfinancialchange.

Short changing cost reductions means short-lived benefitsOur discussions with mining executivesrevealthatmorethan80%ofcostreduc-tion approaches fail to achieve theirintended benefits. Of those that do, thebenefitstendtobeshortlived.

The recession was a case in point.During the crisis, commodity pricesplunged and mining companies madebold moves to preserve cash by cutting

spendingonexploration,contractorsandhead office costs. But, these initiativeswerereactionaryanddidnotaddresstheroot cause: the inflated costs of existingproductionassets.

Cost-cuttingattemptsfailforavarietyofreasons.Alackofastrongfoundationin financial discipline makes it difficultforcompaniestoidentifywaystoreducecosts. Another common reason is over-lookingtheoperatingcostsofyouropera-tions and third-party spending wheremany opportunities to reduce expensestend to exist. Finally, not changing thespendingcultureorrefrainingfrommea-suring results canbebarriers tocreatingthelong-termcostsavingsdesired.

Making sustainable cost reductionsAs individuals, we have all been there.We’vesetgoalstocutcosts,butareunableto commit for the long term. The samegoes for most mining companies. To besuccessful,themantraof“eliminatingbadcostsandsupportinggoodcosts”issome-thingallminingcompaniesshouldliveby.

That’swheresustainablecostmanage-ment comes in. Reducing costs to createlong-termpositiveimpactsshouldbetheend goal. This requires a strong founda-tion built on effective planning, a well-controlled spend culture and employeeawareness about the direct impact theyhave on operating costs. The ability totrackandmonitorbenefitsand feedbackis also critical to continually improveapproaches.Sustainablecostreduction isajourneythattypicallytakesseveralyearstofullyembed.Thekeystepsare:

Reducing non-essential spending:Purgecoststhatarenon-essentialtobusi-nessoperations.

Identifying cost drivers:Analyze operating cost sources and linkfinancialplanstooperatingplanstoprovidetransparency, improve accountability andmakeiteasiertomeasurecost-cuttingefforts.

Controlling third-party spending: Ensure that sound agreements are beingmade with third parties to help reducecostsandimprovethesupplychain.

Shifting cost culture and behaviours:Encourage individual responsibility formanagingandcontrollingspending.

Neverhas itbeenmoreexpensive forminingcompaniestooperate.Costshaveballoonedgloballyoverthepastfiveyearswith energy, maintenance and labour allbeingsignificantcostdrivers.

In2011andbeyond,reducingcostsandwaste at the operational level will be a toppriority for mining industry executives.Whileexternalcostswillcontinuetoclimb,miningcompaniescancontroltheirexpensesforthelong-term,andatthesametime,putthemselves in a better position for success.Thisrequireseffectiveplanning,understand-ing what’s driving their costs and how tocontrolit,andestablishingacontrolledspendculture where all staff understand theirimpactonthebottomline.

To read PwC’s Sustainable Cost Reduction in the Mining Sectorreport,visitwww.pwc.com/ca/en/mining/sustainable-cost-reduction-mining-sector.jhtml. CMJ

|ExplorationOpportunities

LET’S WORK.Being first doesn’t make us better — building superior equipment does. As the undisputed champ of articulated hauling, Volvo is primed to help you succeed. Let’s work together to get the job done right — day or night, rain or shine.

Let’s work. Visit your local Strongco Equipment dealer today.

www.strongco.com

ONTARIOALBERTA QUEBECATLANTIC

Calgary 403-216-1010

Edmonton 780-464-1909

Grande Prairie 780-513-3700

Red Deer 403-346-3473

Dartmouth 902-468-5010

Moncton 506-857-8425

Newfoundland 709-747-4026

Grimsby 905-643-4255

Kitchener 519-744-3518

London (Lambeth) 519-652-3234

Mississauga 905-670-5100

Ottawa (Stittsville) 613-836-6633

Sudbury (Lively) 705-692-5801

Thunder Bay 807-475-3052

Baie-Comeau 418-296-3091

Boucherville 450-449-4666

Chicoutimi 418-690-1724

Laval 450-686-8911

Ste-Foy 418-653-2801

Val-d’Or 819-824-2791

Volvo Construction Equipment

173-639 Strongco LW AH Can-Mining ad.indd 1 1/17/11 3:23 PM

http://www.pwc.com/ca/en/mining/sustainable-cost-reduction-mining-sector.jhtml




Volvo

LET’S WORK.Being first doesn’t make us better — building superior equipment does. As the undisputed champ of articulated hauling, Volvo is primed to help you succeed. Let’s work together to get the job done right — day or night, rain or shine.

Let’s work. Visit your local Strongco Equipment dealer today.

www.strongco.com

ONTARIOALBERTA QUEBECATLANTIC

Calgary 403-216-1010

Edmonton 780-464-1909

Grande Prairie 780-513-3700

Red Deer 403-346-3473

Dartmouth 902-468-5010

Moncton 506-857-8425

Newfoundland 709-747-4026

Grimsby 905-643-4255

Kitchener 519-744-3518

London (Lambeth) 519-652-3234

Mississauga 905-670-5100

Ottawa (Stittsville) 613-836-6633

Sudbury (Lively) 705-692-5801

Thunder Bay 807-475-3052

Baie-Comeau 418-296-3091

Boucherville 450-449-4666

Chicoutimi 418-690-1724

Laval 450-686-8911

Ste-Foy 418-653-2801

Val-d’Or 819-824-2791

Volvo Construction Equipment

173-639 Strongco LW AH Can-Mining ad.indd 1 1/17/11 3:23 PM

http://www.strongco.com

www.oricaminingservices.com

Technology for wall control

Rock solid control

Maintaining the integrity of walls is integral to the safe operation and recovery of metalliferous deposits. With the right blasting technology you can benefit from lower stripping ratios, reduced risk and wall rehabilitation costs, and increased production.

At Orica, we use our Global R&D and technical capability to find solutions to the challenges you face every day. You can see the results with our Electronic Blasting Systems, Variable Energy Bulk Systems and Packaged Products – modeled with our sophisticated wall control capabilities and Advanced Vibration Management. That’s the power of partnership.

Please visit us at CIM 2011 Montreal, Booth #215.

http://www.oricaminingservices.com

http___=cmj-de-02012011

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