8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 115

Mineral Exploration

and Mining EssentialsRobert Stevens

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 215

M983145983150983141 983154983137983148 E 983160983152983148983151983154983137983156983145983151983150

983137 983150 983140 M 983145 983150 983145 983150 983143 E 983155 983155 983141 983150 983156 983145983137 983148 983155

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 315

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 415

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 515

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 615

M983145983150983141 983154983137983148 E 983160983152983148983151983154983137983156983145983151983150

983137 983150 983140 M 983145 983150 983145 983150 983143 E 983155 983155 983141 983150 983156 983145983137 983148 983155

Robert StevensBritish Columbia Institute of Technology

P983137983147983137983159983137983157 G983141983151M983137983150983137983143983141983149983141983150983156 I983150983139P983151983154983156 C983151983153983157983145983156983148983137983149 B983154983145983156983145983155983144 C983151983148983157983149983138983145983137

983159983159983159983149983145983150983145983150983143983141983155983155983141983150983156983145983137983148983155983139983151983149

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 715

Copyright copy 2010 Robert Stevens All rights reserved

No part of this publication may be reproduced stored in an electronic data-

base or transmitted in any form by any means electronic photocopying re-

cording or otherwise without the prior written permission of the copyrightholder

For training courses related to the material in this book see wwwbcitcamin-

ing or contact infominingessentialscom

Support for this book was provided by the British Columbia

Institute of Technology

Library and Archives Canada Cataloguing in Publication

Stevens Robert Allan 1965-

Mineral exploration and mining essentials Robert Stevens

Includes bibliographical references and index

ISBN 978-0-9867221-0-3

1 Mines and mineral resources 2 Mining geology 3 Mining engi-

neering 4 Abandoned mined lands reclamation 5 Mines and mineral

resources-- Economic aspects I Title

TN145S74 2010 622 C2010-906960-9

Pakawau GeoManagement Inc

1120 Fletcher Way

Port Coquitlam BC CanadaV3C 6B7

wwwminingessentialscom

Printed in Canada

Front coverFolded coal seams and sedimentary rocks from the lsquoA Northrsquo highwall at the Cardinal River Coal Mine in

southwestern Alberta (image courtesy of Teck Resources)

Frontispiece

Open pit at Barrick Goldrsquos Goldstrike Mine in Nevada in March 983090983088983089983088 (photo by Bryan Farbridge)

Previous page

Northern lights shine over an exploration field tent at the Revenue Camp Yukon (photo copyright Mark

Roden Northern Freegold Resources Ltd)

8102019 Mining Essentials - Preliminary Pages and Table of Contents

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vi i

ContentsPreface ix

Meet the Author xiii

C H A P T E R 1 mdash I N D U S T R Y O V E R V I E W 1

The Mining Life Sequence 983090

Mineral Exploration and Mining 983092

Commodities 983095

Participants in Exploration and Mining 983097

Funding Mineral Exploration 983089983090

References 983089983091

C H A P T E R 2 mdash G E O L O G Y 1 5Plate Tectonics 983089983094

Geologic Time 983090983089

Minerals 983090983091

Rocks 983090983096

Structural Geology 983091983095

References 983092983093

C H A P T E R 3 mdash M I N E R A L D E P O S I T S 4 7

The Formation of Mineral Deposits 983092983096

Mineral Deposit Terminolog y 983093983093

Styles and Forms of Mineralization 983093983096

Mineral Deposit Types 983094983091

References 983089983088983096

C H A P T E R 4 mdash M I N E R A L E X P L O R A T I O N 1 1 3

Stages of Exploration and Types of Exploration Properties 983089983089983092

Option Agreements 983089983090983093

Joint Ventures and Exploration Alliances 983089983090983097

Exploration Targets 983089983091983088

Mineral Exploration Techniques 983089983091983088

Geological Methods 983089983091983096

Geochemical Methods 983089983092983088

Geophysical Methods 983089983093983089

Drilling Methods 983089983093983096

References 983089983094983095

8102019 Mining Essentials - Preliminary Pages and Table of Contents

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vi ii

C H A P T E R 5 mdash M I N E R A L R E S O U R C E S A N D R E S E R V E S A N D

M I N I N G T E C H N I C A L S T U D I E S 1 6 9

Mineral Resources and Reserves 983089983095983088

Preliminary Economic Assessments Pre-feasibility and Feasibility

Studies 983089983096983094Reporting and Disclosure Standards for Exploration and Mining

Companies (Canadarsquos NI43-101) 983089983097983091

References 983089983097983095

C H A P T E R 6 mdash M I N I N G 1 9 9

Types of Mining Operations 983090983088983088

Surface Mining (Open-Pit Mining) 983090983088983092

Underground Mining 983090983089983093

C H A P T E R 7 mdash M I N E R A L P R O C E S S I N G 2 3 1Crushing and Grinding 983090983091983090

Treating GoldplusmnSilve r Ores 983090983091983095

Treating Base Metal Ores 983090983092983092

C H A P T E R 8 mdash E N V I R O N M E N T A L C O N S I D E R A T I O N S 2 5 3

The Modern Mining Environment 983090983093983092

Sustainable Development 983090983093983094

Environmental Assessment 983090983093983097

Environmental Practices at Operating Mines 983090983094983090

Acid Rock Drainage 983090983094983094

Closure and Reclamation 983090983094983096

References 983090983095983092

CHAPTER 9mdashEVALUATING

EXPLORATION COMPANIES

A N D T E C H N I C A L N E W S R E L E A S E S 2 7 7

Evaluating Exploration Companies 983090983095983096

Interpreting Technical News Releases 983090983096983090

A P P E N D I X A mdash C O N V E R S I O N F AC T O R S 2 8 7

A P P E N D I X B mdash G R A D E A N D T O N N A G E T A B L E S 2 8 9

G L O S S A R Y 2 9 7

I N D E X 3 1 7

8102019 Mining Essentials - Preliminary Pages and Table of Contents

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ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

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xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

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xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

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xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

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The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 215

M983145983150983141 983154983137983148 E 983160983152983148983151983154983137983156983145983151983150

983137 983150 983140 M 983145 983150 983145 983150 983143 E 983155 983155 983141 983150 983156 983145983137 983148 983155

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 315

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 415

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 515

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 615

M983145983150983141 983154983137983148 E 983160983152983148983151983154983137983156983145983151983150

983137 983150 983140 M 983145 983150 983145 983150 983143 E 983155 983155 983141 983150 983156 983145983137 983148 983155

Robert StevensBritish Columbia Institute of Technology

P983137983147983137983159983137983157 G983141983151M983137983150983137983143983141983149983141983150983156 I983150983139P983151983154983156 C983151983153983157983145983156983148983137983149 B983154983145983156983145983155983144 C983151983148983157983149983138983145983137

983159983159983159983149983145983150983145983150983143983141983155983155983141983150983156983145983137983148983155983139983151983149

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 715

Copyright copy 2010 Robert Stevens All rights reserved

No part of this publication may be reproduced stored in an electronic data-

base or transmitted in any form by any means electronic photocopying re-

cording or otherwise without the prior written permission of the copyrightholder

For training courses related to the material in this book see wwwbcitcamin-

ing or contact infominingessentialscom

Support for this book was provided by the British Columbia

Institute of Technology

Library and Archives Canada Cataloguing in Publication

Stevens Robert Allan 1965-

Mineral exploration and mining essentials Robert Stevens

Includes bibliographical references and index

ISBN 978-0-9867221-0-3

1 Mines and mineral resources 2 Mining geology 3 Mining engi-

neering 4 Abandoned mined lands reclamation 5 Mines and mineral

resources-- Economic aspects I Title

TN145S74 2010 622 C2010-906960-9

Pakawau GeoManagement Inc

1120 Fletcher Way

Port Coquitlam BC CanadaV3C 6B7

wwwminingessentialscom

Printed in Canada

Front coverFolded coal seams and sedimentary rocks from the lsquoA Northrsquo highwall at the Cardinal River Coal Mine in

southwestern Alberta (image courtesy of Teck Resources)

Frontispiece

Open pit at Barrick Goldrsquos Goldstrike Mine in Nevada in March 983090983088983089983088 (photo by Bryan Farbridge)

Previous page

Northern lights shine over an exploration field tent at the Revenue Camp Yukon (photo copyright Mark

Roden Northern Freegold Resources Ltd)

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 815

vi i

ContentsPreface ix

Meet the Author xiii

C H A P T E R 1 mdash I N D U S T R Y O V E R V I E W 1

The Mining Life Sequence 983090

Mineral Exploration and Mining 983092

Commodities 983095

Participants in Exploration and Mining 983097

Funding Mineral Exploration 983089983090

References 983089983091

C H A P T E R 2 mdash G E O L O G Y 1 5Plate Tectonics 983089983094

Geologic Time 983090983089

Minerals 983090983091

Rocks 983090983096

Structural Geology 983091983095

References 983092983093

C H A P T E R 3 mdash M I N E R A L D E P O S I T S 4 7

The Formation of Mineral Deposits 983092983096

Mineral Deposit Terminolog y 983093983093

Styles and Forms of Mineralization 983093983096

Mineral Deposit Types 983094983091

References 983089983088983096

C H A P T E R 4 mdash M I N E R A L E X P L O R A T I O N 1 1 3

Stages of Exploration and Types of Exploration Properties 983089983089983092

Option Agreements 983089983090983093

Joint Ventures and Exploration Alliances 983089983090983097

Exploration Targets 983089983091983088

Mineral Exploration Techniques 983089983091983088

Geological Methods 983089983091983096

Geochemical Methods 983089983092983088

Geophysical Methods 983089983093983089

Drilling Methods 983089983093983096

References 983089983094983095

8102019 Mining Essentials - Preliminary Pages and Table of Contents

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vi ii

C H A P T E R 5 mdash M I N E R A L R E S O U R C E S A N D R E S E R V E S A N D

M I N I N G T E C H N I C A L S T U D I E S 1 6 9

Mineral Resources and Reserves 983089983095983088

Preliminary Economic Assessments Pre-feasibility and Feasibility

Studies 983089983096983094Reporting and Disclosure Standards for Exploration and Mining

Companies (Canadarsquos NI43-101) 983089983097983091

References 983089983097983095

C H A P T E R 6 mdash M I N I N G 1 9 9

Types of Mining Operations 983090983088983088

Surface Mining (Open-Pit Mining) 983090983088983092

Underground Mining 983090983089983093

C H A P T E R 7 mdash M I N E R A L P R O C E S S I N G 2 3 1Crushing and Grinding 983090983091983090

Treating GoldplusmnSilve r Ores 983090983091983095

Treating Base Metal Ores 983090983092983092

C H A P T E R 8 mdash E N V I R O N M E N T A L C O N S I D E R A T I O N S 2 5 3

The Modern Mining Environment 983090983093983092

Sustainable Development 983090983093983094

Environmental Assessment 983090983093983097

Environmental Practices at Operating Mines 983090983094983090

Acid Rock Drainage 983090983094983094

Closure and Reclamation 983090983094983096

References 983090983095983092

CHAPTER 9mdashEVALUATING

EXPLORATION COMPANIES

A N D T E C H N I C A L N E W S R E L E A S E S 2 7 7

Evaluating Exploration Companies 983090983095983096

Interpreting Technical News Releases 983090983096983090

A P P E N D I X A mdash C O N V E R S I O N F AC T O R S 2 8 7

A P P E N D I X B mdash G R A D E A N D T O N N A G E T A B L E S 2 8 9

G L O S S A R Y 2 9 7

I N D E X 3 1 7

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1015

ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 315

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 415

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 515

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 615

M983145983150983141 983154983137983148 E 983160983152983148983151983154983137983156983145983151983150

983137 983150 983140 M 983145 983150 983145 983150 983143 E 983155 983155 983141 983150 983156 983145983137 983148 983155

Robert StevensBritish Columbia Institute of Technology

P983137983147983137983159983137983157 G983141983151M983137983150983137983143983141983149983141983150983156 I983150983139P983151983154983156 C983151983153983157983145983156983148983137983149 B983154983145983156983145983155983144 C983151983148983157983149983138983145983137

983159983159983159983149983145983150983145983150983143983141983155983155983141983150983156983145983137983148983155983139983151983149

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 715

Copyright copy 2010 Robert Stevens All rights reserved

No part of this publication may be reproduced stored in an electronic data-

base or transmitted in any form by any means electronic photocopying re-

cording or otherwise without the prior written permission of the copyrightholder

For training courses related to the material in this book see wwwbcitcamin-

ing or contact infominingessentialscom

Support for this book was provided by the British Columbia

Institute of Technology

Library and Archives Canada Cataloguing in Publication

Stevens Robert Allan 1965-

Mineral exploration and mining essentials Robert Stevens

Includes bibliographical references and index

ISBN 978-0-9867221-0-3

1 Mines and mineral resources 2 Mining geology 3 Mining engi-

neering 4 Abandoned mined lands reclamation 5 Mines and mineral

resources-- Economic aspects I Title

TN145S74 2010 622 C2010-906960-9

Pakawau GeoManagement Inc

1120 Fletcher Way

Port Coquitlam BC CanadaV3C 6B7

wwwminingessentialscom

Printed in Canada

Front coverFolded coal seams and sedimentary rocks from the lsquoA Northrsquo highwall at the Cardinal River Coal Mine in

southwestern Alberta (image courtesy of Teck Resources)

Frontispiece

Open pit at Barrick Goldrsquos Goldstrike Mine in Nevada in March 983090983088983089983088 (photo by Bryan Farbridge)

Previous page

Northern lights shine over an exploration field tent at the Revenue Camp Yukon (photo copyright Mark

Roden Northern Freegold Resources Ltd)

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 815

vi i

ContentsPreface ix

Meet the Author xiii

C H A P T E R 1 mdash I N D U S T R Y O V E R V I E W 1

The Mining Life Sequence 983090

Mineral Exploration and Mining 983092

Commodities 983095

Participants in Exploration and Mining 983097

Funding Mineral Exploration 983089983090

References 983089983091

C H A P T E R 2 mdash G E O L O G Y 1 5Plate Tectonics 983089983094

Geologic Time 983090983089

Minerals 983090983091

Rocks 983090983096

Structural Geology 983091983095

References 983092983093

C H A P T E R 3 mdash M I N E R A L D E P O S I T S 4 7

The Formation of Mineral Deposits 983092983096

Mineral Deposit Terminolog y 983093983093

Styles and Forms of Mineralization 983093983096

Mineral Deposit Types 983094983091

References 983089983088983096

C H A P T E R 4 mdash M I N E R A L E X P L O R A T I O N 1 1 3

Stages of Exploration and Types of Exploration Properties 983089983089983092

Option Agreements 983089983090983093

Joint Ventures and Exploration Alliances 983089983090983097

Exploration Targets 983089983091983088

Mineral Exploration Techniques 983089983091983088

Geological Methods 983089983091983096

Geochemical Methods 983089983092983088

Geophysical Methods 983089983093983089

Drilling Methods 983089983093983096

References 983089983094983095

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 915

vi ii

C H A P T E R 5 mdash M I N E R A L R E S O U R C E S A N D R E S E R V E S A N D

M I N I N G T E C H N I C A L S T U D I E S 1 6 9

Mineral Resources and Reserves 983089983095983088

Preliminary Economic Assessments Pre-feasibility and Feasibility

Studies 983089983096983094Reporting and Disclosure Standards for Exploration and Mining

Companies (Canadarsquos NI43-101) 983089983097983091

References 983089983097983095

C H A P T E R 6 mdash M I N I N G 1 9 9

Types of Mining Operations 983090983088983088

Surface Mining (Open-Pit Mining) 983090983088983092

Underground Mining 983090983089983093

C H A P T E R 7 mdash M I N E R A L P R O C E S S I N G 2 3 1Crushing and Grinding 983090983091983090

Treating GoldplusmnSilve r Ores 983090983091983095

Treating Base Metal Ores 983090983092983092

C H A P T E R 8 mdash E N V I R O N M E N T A L C O N S I D E R A T I O N S 2 5 3

The Modern Mining Environment 983090983093983092

Sustainable Development 983090983093983094

Environmental Assessment 983090983093983097

Environmental Practices at Operating Mines 983090983094983090

Acid Rock Drainage 983090983094983094

Closure and Reclamation 983090983094983096

References 983090983095983092

CHAPTER 9mdashEVALUATING

EXPLORATION COMPANIES

A N D T E C H N I C A L N E W S R E L E A S E S 2 7 7

Evaluating Exploration Companies 983090983095983096

Interpreting Technical News Releases 983090983096983090

A P P E N D I X A mdash C O N V E R S I O N F AC T O R S 2 8 7

A P P E N D I X B mdash G R A D E A N D T O N N A G E T A B L E S 2 8 9

G L O S S A R Y 2 9 7

I N D E X 3 1 7

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1015

ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 415

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 515

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 615

M983145983150983141 983154983137983148 E 983160983152983148983151983154983137983156983145983151983150

983137 983150 983140 M 983145 983150 983145 983150 983143 E 983155 983155 983141 983150 983156 983145983137 983148 983155

Robert StevensBritish Columbia Institute of Technology

P983137983147983137983159983137983157 G983141983151M983137983150983137983143983141983149983141983150983156 I983150983139P983151983154983156 C983151983153983157983145983156983148983137983149 B983154983145983156983145983155983144 C983151983148983157983149983138983145983137

983159983159983159983149983145983150983145983150983143983141983155983155983141983150983156983145983137983148983155983139983151983149

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 715

Copyright copy 2010 Robert Stevens All rights reserved

No part of this publication may be reproduced stored in an electronic data-

base or transmitted in any form by any means electronic photocopying re-

cording or otherwise without the prior written permission of the copyrightholder

For training courses related to the material in this book see wwwbcitcamin-

ing or contact infominingessentialscom

Support for this book was provided by the British Columbia

Institute of Technology

Library and Archives Canada Cataloguing in Publication

Stevens Robert Allan 1965-

Mineral exploration and mining essentials Robert Stevens

Includes bibliographical references and index

ISBN 978-0-9867221-0-3

1 Mines and mineral resources 2 Mining geology 3 Mining engi-

neering 4 Abandoned mined lands reclamation 5 Mines and mineral

resources-- Economic aspects I Title

TN145S74 2010 622 C2010-906960-9

Pakawau GeoManagement Inc

1120 Fletcher Way

Port Coquitlam BC CanadaV3C 6B7

wwwminingessentialscom

Printed in Canada

Front coverFolded coal seams and sedimentary rocks from the lsquoA Northrsquo highwall at the Cardinal River Coal Mine in

southwestern Alberta (image courtesy of Teck Resources)

Frontispiece

Open pit at Barrick Goldrsquos Goldstrike Mine in Nevada in March 983090983088983089983088 (photo by Bryan Farbridge)

Previous page

Northern lights shine over an exploration field tent at the Revenue Camp Yukon (photo copyright Mark

Roden Northern Freegold Resources Ltd)

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 815

vi i

ContentsPreface ix

Meet the Author xiii

C H A P T E R 1 mdash I N D U S T R Y O V E R V I E W 1

The Mining Life Sequence 983090

Mineral Exploration and Mining 983092

Commodities 983095

Participants in Exploration and Mining 983097

Funding Mineral Exploration 983089983090

References 983089983091

C H A P T E R 2 mdash G E O L O G Y 1 5Plate Tectonics 983089983094

Geologic Time 983090983089

Minerals 983090983091

Rocks 983090983096

Structural Geology 983091983095

References 983092983093

C H A P T E R 3 mdash M I N E R A L D E P O S I T S 4 7

The Formation of Mineral Deposits 983092983096

Mineral Deposit Terminolog y 983093983093

Styles and Forms of Mineralization 983093983096

Mineral Deposit Types 983094983091

References 983089983088983096

C H A P T E R 4 mdash M I N E R A L E X P L O R A T I O N 1 1 3

Stages of Exploration and Types of Exploration Properties 983089983089983092

Option Agreements 983089983090983093

Joint Ventures and Exploration Alliances 983089983090983097

Exploration Targets 983089983091983088

Mineral Exploration Techniques 983089983091983088

Geological Methods 983089983091983096

Geochemical Methods 983089983092983088

Geophysical Methods 983089983093983089

Drilling Methods 983089983093983096

References 983089983094983095

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 915

vi ii

C H A P T E R 5 mdash M I N E R A L R E S O U R C E S A N D R E S E R V E S A N D

M I N I N G T E C H N I C A L S T U D I E S 1 6 9

Mineral Resources and Reserves 983089983095983088

Preliminary Economic Assessments Pre-feasibility and Feasibility

Studies 983089983096983094Reporting and Disclosure Standards for Exploration and Mining

Companies (Canadarsquos NI43-101) 983089983097983091

References 983089983097983095

C H A P T E R 6 mdash M I N I N G 1 9 9

Types of Mining Operations 983090983088983088

Surface Mining (Open-Pit Mining) 983090983088983092

Underground Mining 983090983089983093

C H A P T E R 7 mdash M I N E R A L P R O C E S S I N G 2 3 1Crushing and Grinding 983090983091983090

Treating GoldplusmnSilve r Ores 983090983091983095

Treating Base Metal Ores 983090983092983092

C H A P T E R 8 mdash E N V I R O N M E N T A L C O N S I D E R A T I O N S 2 5 3

The Modern Mining Environment 983090983093983092

Sustainable Development 983090983093983094

Environmental Assessment 983090983093983097

Environmental Practices at Operating Mines 983090983094983090

Acid Rock Drainage 983090983094983094

Closure and Reclamation 983090983094983096

References 983090983095983092

CHAPTER 9mdashEVALUATING

EXPLORATION COMPANIES

A N D T E C H N I C A L N E W S R E L E A S E S 2 7 7

Evaluating Exploration Companies 983090983095983096

Interpreting Technical News Releases 983090983096983090

A P P E N D I X A mdash C O N V E R S I O N F AC T O R S 2 8 7

A P P E N D I X B mdash G R A D E A N D T O N N A G E T A B L E S 2 8 9

G L O S S A R Y 2 9 7

I N D E X 3 1 7

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1015

ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 515

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 615

M983145983150983141 983154983137983148 E 983160983152983148983151983154983137983156983145983151983150

983137 983150 983140 M 983145 983150 983145 983150 983143 E 983155 983155 983141 983150 983156 983145983137 983148 983155

Robert StevensBritish Columbia Institute of Technology

P983137983147983137983159983137983157 G983141983151M983137983150983137983143983141983149983141983150983156 I983150983139P983151983154983156 C983151983153983157983145983156983148983137983149 B983154983145983156983145983155983144 C983151983148983157983149983138983145983137

983159983159983159983149983145983150983145983150983143983141983155983155983141983150983156983145983137983148983155983139983151983149

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 715

Copyright copy 2010 Robert Stevens All rights reserved

No part of this publication may be reproduced stored in an electronic data-

base or transmitted in any form by any means electronic photocopying re-

cording or otherwise without the prior written permission of the copyrightholder

For training courses related to the material in this book see wwwbcitcamin-

ing or contact infominingessentialscom

Support for this book was provided by the British Columbia

Institute of Technology

Library and Archives Canada Cataloguing in Publication

Stevens Robert Allan 1965-

Mineral exploration and mining essentials Robert Stevens

Includes bibliographical references and index

ISBN 978-0-9867221-0-3

1 Mines and mineral resources 2 Mining geology 3 Mining engi-

neering 4 Abandoned mined lands reclamation 5 Mines and mineral

resources-- Economic aspects I Title

TN145S74 2010 622 C2010-906960-9

Pakawau GeoManagement Inc

1120 Fletcher Way

Port Coquitlam BC CanadaV3C 6B7

wwwminingessentialscom

Printed in Canada

Front coverFolded coal seams and sedimentary rocks from the lsquoA Northrsquo highwall at the Cardinal River Coal Mine in

southwestern Alberta (image courtesy of Teck Resources)

Frontispiece

Open pit at Barrick Goldrsquos Goldstrike Mine in Nevada in March 983090983088983089983088 (photo by Bryan Farbridge)

Previous page

Northern lights shine over an exploration field tent at the Revenue Camp Yukon (photo copyright Mark

Roden Northern Freegold Resources Ltd)

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 815

vi i

ContentsPreface ix

Meet the Author xiii

C H A P T E R 1 mdash I N D U S T R Y O V E R V I E W 1

The Mining Life Sequence 983090

Mineral Exploration and Mining 983092

Commodities 983095

Participants in Exploration and Mining 983097

Funding Mineral Exploration 983089983090

References 983089983091

C H A P T E R 2 mdash G E O L O G Y 1 5Plate Tectonics 983089983094

Geologic Time 983090983089

Minerals 983090983091

Rocks 983090983096

Structural Geology 983091983095

References 983092983093

C H A P T E R 3 mdash M I N E R A L D E P O S I T S 4 7

The Formation of Mineral Deposits 983092983096

Mineral Deposit Terminolog y 983093983093

Styles and Forms of Mineralization 983093983096

Mineral Deposit Types 983094983091

References 983089983088983096

C H A P T E R 4 mdash M I N E R A L E X P L O R A T I O N 1 1 3

Stages of Exploration and Types of Exploration Properties 983089983089983092

Option Agreements 983089983090983093

Joint Ventures and Exploration Alliances 983089983090983097

Exploration Targets 983089983091983088

Mineral Exploration Techniques 983089983091983088

Geological Methods 983089983091983096

Geochemical Methods 983089983092983088

Geophysical Methods 983089983093983089

Drilling Methods 983089983093983096

References 983089983094983095

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 915

vi ii

C H A P T E R 5 mdash M I N E R A L R E S O U R C E S A N D R E S E R V E S A N D

M I N I N G T E C H N I C A L S T U D I E S 1 6 9

Mineral Resources and Reserves 983089983095983088

Preliminary Economic Assessments Pre-feasibility and Feasibility

Studies 983089983096983094Reporting and Disclosure Standards for Exploration and Mining

Companies (Canadarsquos NI43-101) 983089983097983091

References 983089983097983095

C H A P T E R 6 mdash M I N I N G 1 9 9

Types of Mining Operations 983090983088983088

Surface Mining (Open-Pit Mining) 983090983088983092

Underground Mining 983090983089983093

C H A P T E R 7 mdash M I N E R A L P R O C E S S I N G 2 3 1Crushing and Grinding 983090983091983090

Treating GoldplusmnSilve r Ores 983090983091983095

Treating Base Metal Ores 983090983092983092

C H A P T E R 8 mdash E N V I R O N M E N T A L C O N S I D E R A T I O N S 2 5 3

The Modern Mining Environment 983090983093983092

Sustainable Development 983090983093983094

Environmental Assessment 983090983093983097

Environmental Practices at Operating Mines 983090983094983090

Acid Rock Drainage 983090983094983094

Closure and Reclamation 983090983094983096

References 983090983095983092

CHAPTER 9mdashEVALUATING

EXPLORATION COMPANIES

A N D T E C H N I C A L N E W S R E L E A S E S 2 7 7

Evaluating Exploration Companies 983090983095983096

Interpreting Technical News Releases 983090983096983090

A P P E N D I X A mdash C O N V E R S I O N F AC T O R S 2 8 7

A P P E N D I X B mdash G R A D E A N D T O N N A G E T A B L E S 2 8 9

G L O S S A R Y 2 9 7

I N D E X 3 1 7

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1015

ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 615

M983145983150983141 983154983137983148 E 983160983152983148983151983154983137983156983145983151983150

983137 983150 983140 M 983145 983150 983145 983150 983143 E 983155 983155 983141 983150 983156 983145983137 983148 983155

Robert StevensBritish Columbia Institute of Technology

P983137983147983137983159983137983157 G983141983151M983137983150983137983143983141983149983141983150983156 I983150983139P983151983154983156 C983151983153983157983145983156983148983137983149 B983154983145983156983145983155983144 C983151983148983157983149983138983145983137

983159983159983159983149983145983150983145983150983143983141983155983155983141983150983156983145983137983148983155983139983151983149

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 715

Copyright copy 2010 Robert Stevens All rights reserved

No part of this publication may be reproduced stored in an electronic data-

base or transmitted in any form by any means electronic photocopying re-

cording or otherwise without the prior written permission of the copyrightholder

For training courses related to the material in this book see wwwbcitcamin-

ing or contact infominingessentialscom

Support for this book was provided by the British Columbia

Institute of Technology

Library and Archives Canada Cataloguing in Publication

Stevens Robert Allan 1965-

Mineral exploration and mining essentials Robert Stevens

Includes bibliographical references and index

ISBN 978-0-9867221-0-3

1 Mines and mineral resources 2 Mining geology 3 Mining engi-

neering 4 Abandoned mined lands reclamation 5 Mines and mineral

resources-- Economic aspects I Title

TN145S74 2010 622 C2010-906960-9

Pakawau GeoManagement Inc

1120 Fletcher Way

Port Coquitlam BC CanadaV3C 6B7

wwwminingessentialscom

Printed in Canada

Front coverFolded coal seams and sedimentary rocks from the lsquoA Northrsquo highwall at the Cardinal River Coal Mine in

southwestern Alberta (image courtesy of Teck Resources)

Frontispiece

Open pit at Barrick Goldrsquos Goldstrike Mine in Nevada in March 983090983088983089983088 (photo by Bryan Farbridge)

Previous page

Northern lights shine over an exploration field tent at the Revenue Camp Yukon (photo copyright Mark

Roden Northern Freegold Resources Ltd)

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 815

vi i

ContentsPreface ix

Meet the Author xiii

C H A P T E R 1 mdash I N D U S T R Y O V E R V I E W 1

The Mining Life Sequence 983090

Mineral Exploration and Mining 983092

Commodities 983095

Participants in Exploration and Mining 983097

Funding Mineral Exploration 983089983090

References 983089983091

C H A P T E R 2 mdash G E O L O G Y 1 5Plate Tectonics 983089983094

Geologic Time 983090983089

Minerals 983090983091

Rocks 983090983096

Structural Geology 983091983095

References 983092983093

C H A P T E R 3 mdash M I N E R A L D E P O S I T S 4 7

The Formation of Mineral Deposits 983092983096

Mineral Deposit Terminolog y 983093983093

Styles and Forms of Mineralization 983093983096

Mineral Deposit Types 983094983091

References 983089983088983096

C H A P T E R 4 mdash M I N E R A L E X P L O R A T I O N 1 1 3

Stages of Exploration and Types of Exploration Properties 983089983089983092

Option Agreements 983089983090983093

Joint Ventures and Exploration Alliances 983089983090983097

Exploration Targets 983089983091983088

Mineral Exploration Techniques 983089983091983088

Geological Methods 983089983091983096

Geochemical Methods 983089983092983088

Geophysical Methods 983089983093983089

Drilling Methods 983089983093983096

References 983089983094983095

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 915

vi ii

C H A P T E R 5 mdash M I N E R A L R E S O U R C E S A N D R E S E R V E S A N D

M I N I N G T E C H N I C A L S T U D I E S 1 6 9

Mineral Resources and Reserves 983089983095983088

Preliminary Economic Assessments Pre-feasibility and Feasibility

Studies 983089983096983094Reporting and Disclosure Standards for Exploration and Mining

Companies (Canadarsquos NI43-101) 983089983097983091

References 983089983097983095

C H A P T E R 6 mdash M I N I N G 1 9 9

Types of Mining Operations 983090983088983088

Surface Mining (Open-Pit Mining) 983090983088983092

Underground Mining 983090983089983093

C H A P T E R 7 mdash M I N E R A L P R O C E S S I N G 2 3 1Crushing and Grinding 983090983091983090

Treating GoldplusmnSilve r Ores 983090983091983095

Treating Base Metal Ores 983090983092983092

C H A P T E R 8 mdash E N V I R O N M E N T A L C O N S I D E R A T I O N S 2 5 3

The Modern Mining Environment 983090983093983092

Sustainable Development 983090983093983094

Environmental Assessment 983090983093983097

Environmental Practices at Operating Mines 983090983094983090

Acid Rock Drainage 983090983094983094

Closure and Reclamation 983090983094983096

References 983090983095983092

CHAPTER 9mdashEVALUATING

EXPLORATION COMPANIES

A N D T E C H N I C A L N E W S R E L E A S E S 2 7 7

Evaluating Exploration Companies 983090983095983096

Interpreting Technical News Releases 983090983096983090

A P P E N D I X A mdash C O N V E R S I O N F AC T O R S 2 8 7

A P P E N D I X B mdash G R A D E A N D T O N N A G E T A B L E S 2 8 9

G L O S S A R Y 2 9 7

I N D E X 3 1 7

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1015

ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 715

Copyright copy 2010 Robert Stevens All rights reserved

No part of this publication may be reproduced stored in an electronic data-

base or transmitted in any form by any means electronic photocopying re-

cording or otherwise without the prior written permission of the copyrightholder

For training courses related to the material in this book see wwwbcitcamin-

ing or contact infominingessentialscom

Support for this book was provided by the British Columbia

Institute of Technology

Library and Archives Canada Cataloguing in Publication

Stevens Robert Allan 1965-

Mineral exploration and mining essentials Robert Stevens

Includes bibliographical references and index

ISBN 978-0-9867221-0-3

1 Mines and mineral resources 2 Mining geology 3 Mining engi-

neering 4 Abandoned mined lands reclamation 5 Mines and mineral

resources-- Economic aspects I Title

TN145S74 2010 622 C2010-906960-9

Pakawau GeoManagement Inc

1120 Fletcher Way

Port Coquitlam BC CanadaV3C 6B7

wwwminingessentialscom

Printed in Canada

Front coverFolded coal seams and sedimentary rocks from the lsquoA Northrsquo highwall at the Cardinal River Coal Mine in

southwestern Alberta (image courtesy of Teck Resources)

Frontispiece

Open pit at Barrick Goldrsquos Goldstrike Mine in Nevada in March 983090983088983089983088 (photo by Bryan Farbridge)

Previous page

Northern lights shine over an exploration field tent at the Revenue Camp Yukon (photo copyright Mark

Roden Northern Freegold Resources Ltd)

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 815

vi i

ContentsPreface ix

Meet the Author xiii

C H A P T E R 1 mdash I N D U S T R Y O V E R V I E W 1

The Mining Life Sequence 983090

Mineral Exploration and Mining 983092

Commodities 983095

Participants in Exploration and Mining 983097

Funding Mineral Exploration 983089983090

References 983089983091

C H A P T E R 2 mdash G E O L O G Y 1 5Plate Tectonics 983089983094

Geologic Time 983090983089

Minerals 983090983091

Rocks 983090983096

Structural Geology 983091983095

References 983092983093

C H A P T E R 3 mdash M I N E R A L D E P O S I T S 4 7

The Formation of Mineral Deposits 983092983096

Mineral Deposit Terminolog y 983093983093

Styles and Forms of Mineralization 983093983096

Mineral Deposit Types 983094983091

References 983089983088983096

C H A P T E R 4 mdash M I N E R A L E X P L O R A T I O N 1 1 3

Stages of Exploration and Types of Exploration Properties 983089983089983092

Option Agreements 983089983090983093

Joint Ventures and Exploration Alliances 983089983090983097

Exploration Targets 983089983091983088

Mineral Exploration Techniques 983089983091983088

Geological Methods 983089983091983096

Geochemical Methods 983089983092983088

Geophysical Methods 983089983093983089

Drilling Methods 983089983093983096

References 983089983094983095

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 915

vi ii

C H A P T E R 5 mdash M I N E R A L R E S O U R C E S A N D R E S E R V E S A N D

M I N I N G T E C H N I C A L S T U D I E S 1 6 9

Mineral Resources and Reserves 983089983095983088

Preliminary Economic Assessments Pre-feasibility and Feasibility

Studies 983089983096983094Reporting and Disclosure Standards for Exploration and Mining

Companies (Canadarsquos NI43-101) 983089983097983091

References 983089983097983095

C H A P T E R 6 mdash M I N I N G 1 9 9

Types of Mining Operations 983090983088983088

Surface Mining (Open-Pit Mining) 983090983088983092

Underground Mining 983090983089983093

C H A P T E R 7 mdash M I N E R A L P R O C E S S I N G 2 3 1Crushing and Grinding 983090983091983090

Treating GoldplusmnSilve r Ores 983090983091983095

Treating Base Metal Ores 983090983092983092

C H A P T E R 8 mdash E N V I R O N M E N T A L C O N S I D E R A T I O N S 2 5 3

The Modern Mining Environment 983090983093983092

Sustainable Development 983090983093983094

Environmental Assessment 983090983093983097

Environmental Practices at Operating Mines 983090983094983090

Acid Rock Drainage 983090983094983094

Closure and Reclamation 983090983094983096

References 983090983095983092

CHAPTER 9mdashEVALUATING

EXPLORATION COMPANIES

A N D T E C H N I C A L N E W S R E L E A S E S 2 7 7

Evaluating Exploration Companies 983090983095983096

Interpreting Technical News Releases 983090983096983090

A P P E N D I X A mdash C O N V E R S I O N F AC T O R S 2 8 7

A P P E N D I X B mdash G R A D E A N D T O N N A G E T A B L E S 2 8 9

G L O S S A R Y 2 9 7

I N D E X 3 1 7

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1015

ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 815

vi i

ContentsPreface ix

Meet the Author xiii

C H A P T E R 1 mdash I N D U S T R Y O V E R V I E W 1

The Mining Life Sequence 983090

Mineral Exploration and Mining 983092

Commodities 983095

Participants in Exploration and Mining 983097

Funding Mineral Exploration 983089983090

References 983089983091

C H A P T E R 2 mdash G E O L O G Y 1 5Plate Tectonics 983089983094

Geologic Time 983090983089

Minerals 983090983091

Rocks 983090983096

Structural Geology 983091983095

References 983092983093

C H A P T E R 3 mdash M I N E R A L D E P O S I T S 4 7

The Formation of Mineral Deposits 983092983096

Mineral Deposit Terminolog y 983093983093

Styles and Forms of Mineralization 983093983096

Mineral Deposit Types 983094983091

References 983089983088983096

C H A P T E R 4 mdash M I N E R A L E X P L O R A T I O N 1 1 3

Stages of Exploration and Types of Exploration Properties 983089983089983092

Option Agreements 983089983090983093

Joint Ventures and Exploration Alliances 983089983090983097

Exploration Targets 983089983091983088

Mineral Exploration Techniques 983089983091983088

Geological Methods 983089983091983096

Geochemical Methods 983089983092983088

Geophysical Methods 983089983093983089

Drilling Methods 983089983093983096

References 983089983094983095

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 915

vi ii

C H A P T E R 5 mdash M I N E R A L R E S O U R C E S A N D R E S E R V E S A N D

M I N I N G T E C H N I C A L S T U D I E S 1 6 9

Mineral Resources and Reserves 983089983095983088

Preliminary Economic Assessments Pre-feasibility and Feasibility

Studies 983089983096983094Reporting and Disclosure Standards for Exploration and Mining

Companies (Canadarsquos NI43-101) 983089983097983091

References 983089983097983095

C H A P T E R 6 mdash M I N I N G 1 9 9

Types of Mining Operations 983090983088983088

Surface Mining (Open-Pit Mining) 983090983088983092

Underground Mining 983090983089983093

C H A P T E R 7 mdash M I N E R A L P R O C E S S I N G 2 3 1Crushing and Grinding 983090983091983090

Treating GoldplusmnSilve r Ores 983090983091983095

Treating Base Metal Ores 983090983092983092

C H A P T E R 8 mdash E N V I R O N M E N T A L C O N S I D E R A T I O N S 2 5 3

The Modern Mining Environment 983090983093983092

Sustainable Development 983090983093983094

Environmental Assessment 983090983093983097

Environmental Practices at Operating Mines 983090983094983090

Acid Rock Drainage 983090983094983094

Closure and Reclamation 983090983094983096

References 983090983095983092

CHAPTER 9mdashEVALUATING

EXPLORATION COMPANIES

A N D T E C H N I C A L N E W S R E L E A S E S 2 7 7

Evaluating Exploration Companies 983090983095983096

Interpreting Technical News Releases 983090983096983090

A P P E N D I X A mdash C O N V E R S I O N F AC T O R S 2 8 7

A P P E N D I X B mdash G R A D E A N D T O N N A G E T A B L E S 2 8 9

G L O S S A R Y 2 9 7

I N D E X 3 1 7

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1015

ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 915

vi ii

C H A P T E R 5 mdash M I N E R A L R E S O U R C E S A N D R E S E R V E S A N D

M I N I N G T E C H N I C A L S T U D I E S 1 6 9

Mineral Resources and Reserves 983089983095983088

Preliminary Economic Assessments Pre-feasibility and Feasibility

Studies 983089983096983094Reporting and Disclosure Standards for Exploration and Mining

Companies (Canadarsquos NI43-101) 983089983097983091

References 983089983097983095

C H A P T E R 6 mdash M I N I N G 1 9 9

Types of Mining Operations 983090983088983088

Surface Mining (Open-Pit Mining) 983090983088983092

Underground Mining 983090983089983093

C H A P T E R 7 mdash M I N E R A L P R O C E S S I N G 2 3 1Crushing and Grinding 983090983091983090

Treating GoldplusmnSilve r Ores 983090983091983095

Treating Base Metal Ores 983090983092983092

C H A P T E R 8 mdash E N V I R O N M E N T A L C O N S I D E R A T I O N S 2 5 3

The Modern Mining Environment 983090983093983092

Sustainable Development 983090983093983094

Environmental Assessment 983090983093983097

Environmental Practices at Operating Mines 983090983094983090

Acid Rock Drainage 983090983094983094

Closure and Reclamation 983090983094983096

References 983090983095983092

CHAPTER 9mdashEVALUATING

EXPLORATION COMPANIES

A N D T E C H N I C A L N E W S R E L E A S E S 2 7 7

Evaluating Exploration Companies 983090983095983096

Interpreting Technical News Releases 983090983096983090

A P P E N D I X A mdash C O N V E R S I O N F AC T O R S 2 8 7

A P P E N D I X B mdash G R A D E A N D T O N N A G E T A B L E S 2 8 9

G L O S S A R Y 2 9 7

I N D E X 3 1 7

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1015

ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1015

ix

P RE FA CE

Te Mineral Exploration and Mining Industry

Te mineral exploration and mining industry is a dynamic high-tech and di- verse sector that is vital to our modern world It combines science and engi-

neering with business and finance and it is fuelled by a drive for discovery

It is an industry requiring the expertise of a vast array of participants where

technical and business professionals work alongside entrepreneurs risk takers

and creative thinkers to discover develop operate and decommission mines

Te mining industry is a primary wealth creation industry It provides the raw

products needed for almost all other sectors and it supports the economic de-

velopment of countries and communities across the globe Te mining indus-

try continuously strives to operate more efficiently and to limit its impact on

the environment while supporting the economic and social development ofcommunities and countries As we move toward a more sustainable way of life

on Earth the products of the mining industry will continue to play a vital role

in the development of emerging industries such as renewable energy technol-

ogies Te mining industry is not an industry of the past it is an industry cru-

cial to the present and the future It is exciting to participate in and to learn

about

Tis book is aimed at non-technical individuals and professionals who are

working or interested in the mineral exploration and mining industry It will

also be of benefit to students investors community leaders regulators and

the general public Te book provides an overview of the industry from ex-

ploration to mine closure and should serve as a valuable reference that can be

reviewed and re-read over time It is hoped that the book will lead to more in-

formed business and investment decisions will assist with the advancement

of professional careers and will support the effective review and evaluation of

mineral development proposals by financiers governments and communities

OrganizationTe book is divided into nine chapters that more or less follow the typical

path of a mining project from exploration through mine development op-

eration and closure Each chapter stands alone but a broader appreciation of

the mining industry as presented in the book will be enhanced by reviewing

each chapter sequentially Chapter 983089 provides an overview of the mineral ex-

ploration and mining industry in a global context introduces the participants

in the industry and discusses the sources of funding Chapters 983090 and 1048627 provide

a brief review of geology and mineral deposits Because the mineral explora-

tion and mining industry is built around evaluating and extracting rocks and

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1115

x

mineral deposits it is important to have a basic understanding of these tech-

nical topics Where possible the linkages between basic geology and mineral

exploration or mining applications have been highlighted Chapter 1048627 also in-

cludes a survey of 983089983088 common mineral deposit types that will serve as a valu-

able future reference Chapter 1048628 discusses mineral exploration and includesbusiness aspects such as option agreements and technical aspects such as geo-

chemical and geophysical surveys and drilling methods Chapter 983093 covers top-

ics that represent the transition from mineral exploration to mining includ-

ing mineral resource and reserve estimates and feasibility studies It also in-

cludes a review of Canadarsquos national securities instrument 10486281048627-983089983088983089 (98315098314510486281048627-983089983088983089)

Chapters 983094 and 983095 discuss mining and mineral processing and review both sur-

face and underground mining and the recovery of precious and base metals

Chapter 983096 touches on a number of environmental considerations that are im-

portant to the industry such as sustainability environmental assessment and

closure and reclamation Chapter 983097 outlines some of the factors that shouldbe considered when evaluating exploration companies and technical news re-

leases particularly from an investment point of view

AcknowledgementsTis book has benefitted from the support of a wide range of individuals

companies and organizations It is has grown out of a manual that the au-

thor developed for courses on mineral exploration and mining for the busi-

ness and investment sector and for governments and communities Te feed-

back from many participants in these courses was an important driver lead-

ing to the development of this book and their comments have significantly

improved the manual over the years Te first version of the manual was for

a British Columbia Institute of echnology (983138983139983145983156) course called ldquo983149983145983150983141 983089983088983089983088

Exploration and Mining for Investment Advisors and Investorsrdquo Tis course

is part of a collection of courses that the mining program at 983138983139983145983156 has run in

partnership with the Association for Mineral Exploration BC (983137983149983141 983138983139) Both

organizations are thanked for their support in the development of this book

In particular 983138983139983145983156 is thanked for providing the author with the time and re-

sources needed to complete this book for providing a supportive and dynam-

ic environment in which to work and for its commitment to high quality ed-

ucation Paul Razzell from the Learning and eaching Centre at 983138983139983145983156 provid-

ed invaluable help in editing and in the design and layout of the book

Earlier dras of this book have benefitted from the careful reviews by a

number of colleagues Te author would like to thank the following individ-

uals for their support and for their improvements to earlier versions of the

book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1215

xi

Aeroquest Surveys

Alex Doll

AMEC Americas Limited

Association for Mineral Exploration

BC

Atlas Copco

Aurelian Resources Inc

Barrick Gold Corporation

BC Institute of echnology

BC Securities Commission

Bill Lebarge

Bryan Farbridge

Canplats Resources Corp

Capstone Mining Corp

Carol Stoker

Chris Rowan

Colin Dunn

Continental Minerals Corporation

Te Crystal Caves

Derek Torkelson

Diamonds North Resources Ltd

Diavik Diamond Mines Inc

Equity Exploration Consultants Ltd

Flassig Reiner

G Wilson

Geological Association of Canada

Geological Survey of Canada

Geovic Energy Corp

Gold One International

Highland Valley Copper Mine

Imperial Metals Corporation

International Institute for

Sustainable Development (IISD)

James Leader

Kirstie Simpson

Kiska Metals Corporation

Malik L Papis Greengems

Mark Roden

Metals Economics Group

National Institute for Occupational

Health and Safety (NIOSH)

National Oceanic and Atmospheric

Administration

Natural Resources Canada

Newmont Mining Corporation

Northern Freegold Resources

NovaGold Resources Inc

Pacific Rim Mining Corp

Barbara Henderson Pacific Rim Mining Corp

Paul Razzell Learning and Teaching Centre 983138983139983145983156

Michael Assouline Raymond James Limited

Russell Hartlaub Department of Mining and Mineral Exploration 983138983139983145983156

Anoush Ibrahimi Department of Mining and Mineral Exploration 983138983139983145983156 Alex Doll Alex Doll Consulting Ltd

Greg Gossan 983137983149983141983139 Americas Limited

An important part of this book is the photos images and graphics that sup-

port the text Many companies individuals and organizations provided these

images oen spending time tracking down high resolution copies and sug-

gesting interesting alternatives to images the author had selected Kiska Met-

als Corporation and eck Resources Limited are particularly acknowledged

for providing a large number of high quality photographs

Te author would like to acknowledge the following companies organiza-tions and individuals for providing images and other material for this book

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1315

xi i

Placer Dome Inc

Raw Materials Data

Rio into

Robert Marschik

Roca Mines IncRussell Hartlaub

Sandvik AB

Saskatchewan Research Council

Scott McAlpine

Sean McKinely

Selwyn Resources Ltd

Siemens AG

Silvercorp Metals Inc

Stealth Minerals Limited

eck Resources Limited

era Grady

errane Metals Corp

TyssenKrupp Foumldertechnik

immins Gold CorpUnited States Geological Survey

(USGS)

Uranerz Energy Corporation

Vivian Hui

Wikimedia Commons

Wyoming Mining Association

Xstrata

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1415

xiii

M E E T T H E A U T H O R

Robert Stevens PhD PGeo

Robert Stevens is a professional geologist who is well known for his involve-

ment in the mineral exploration community in Vancouver and for deliver-

ing dynamic and enlightening courses on the mineral exploration and mining

industry to various industry participants and stakeholders in western North

America Dr Stevens is the Associate Dean of Natural Resources at the Brit-

ish Columbia Institute of echnology (983138983139983145983156) prior to which he was a facul-

ty member and head of the Mining and Mineral Exploration echnology de-

partment at 983138983139983145983156 for 10 years He received his PhD in geology from the Uni-

versity of Alberta with a focus on structural geology and tectonics and an

Honours BSc in geology from the University of Waterloo He has worked

across Canada for a number of exploration companies and for provincial and

federal geological surveys

Dr Stevens has been a director of the Association for Mineral Exploration

BC since 2001 and was the Chairman from 2008-2010 In 2005 while on sab-

batical from 983138983139983145983156 he was the Executive Director of Geoscience BC a position

that involved initiating and directing Geoscience BCrsquos programs and develop-

ment in its inaugural year Dr Stevens is passionate about the mineral explo-

ration and mining industry and enjoys the mix of science engineering busi-

ness discovery and entrepreneurialism that are integral to the industry

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October 983090983088983089983088

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia

8102019 Mining Essentials - Preliminary Pages and Table of Contents

httpslidepdfcomreaderfullmining-essentials-preliminary-pages-and-table-of-contents 1515

The mineral exploration and mining industry is a

dynamic diverse and wealth-building sector in which

a wide range of people are involved professionally orpersonally At the same time it is an industry based

on applied science and technology with a lexicon not

widely understood by many of these participants This

book bridges that gap

Mineral Exploration and Mining Essentials is an indis-

pensable primer for anyone interested in the mineral

exploration and mining industry but who does not have

a background in the sector

bull Need to make informed mining-related investmentdecisions

bull Want to better evaluate mineral development

proposals

bull Interested in exploration discovery geology and

mining

This richly illustrated book provides a thorough over-

view of the industry from the exploration phase to mine

closure and includes a comprehensive glossary

Dr Robert Stevens is a professional geologist and

Associate Dean of Natural Resources at the British

Columbia Institute of Technology He is well known

for delivering compelling and enlightening courses on

the mineral exploration and mining industry to various

stakeholders in western North America and for his

involvement in the mineral exploration community in

Vancouver British Columbia