Mineral Exploration

and Mining Essentials

Robert Stevens

M i n e r al E xpl oration
a n d M i ning E ssentials

M i n e r al E xpl oration
a n d M i ning E ssentials

Robert Stevens
British Columbia Institute of Technology

Pakawau GeoManagement Inc.

Port Coquitlam, British Columbia
www.miningessentials.com

Copyright 2010 Robert Stevens. All rights reserved.

No part of this publication may be reproduced, stored in an electronic database or transmitted in any form by any means, electronic, photocopying, recording or otherwise, without the prior written permission of the copyright
holder.
For training courses related to the material in this book, see www.bcit.ca/mining or contact: [email protected]
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 engineering. 4. Abandoned mined lands reclamation. 5. Mines and mineral
resources-- Economic aspects. I. Title.
TN145.S74 2010
622
C2010-906960-9

Pakawau GeoManagement Inc.

1120 Fletcher Way
Port Coquitlam, BC, Canada,V3C 6B7
www.miningessentials.com
Printed in Canada
Front cover
Folded coal seams and sedimentary rocks from the A North highwall at the Cardinal River Coal Mine in
southwestern Alberta (image courtesy of Teck Resources).
Frontispiece
Open pit at Barrick Golds Goldstrike Mine in Nevada in March, 2010 (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.).

Contents
Preface ix
Meet the Author xiii
CHAPTER 1INDUSTRY OVERVIEW 1
The Mining Life Sequence 2
Mineral Exploration and Mining 4
Commodities 7
Participants in Exploration and Mining 9
Funding Mineral Exploration 12
References 13
C H A P T E R 2 G E O LO G Y 15
Plate Tectonics 16
Geologic Time 21
Minerals 23
Rocks 28
Structural Geology 37
References 45
C H A P T E R 3 M I N E R A L D E P O S I T S 47
The Formation of Mineral Deposits 48
Mineral Deposit Terminology 55
Styles and Forms of Mineralization 58
Mineral Deposit Types 63
References 108
C H A P T E R 4 M I N E R A L E X P LO R AT I O N 113
Stages of Exploration and Types of Exploration Properties 114
Option Agreements 125
Joint Ventures and Exploration Alliances 129
Exploration Targets 130
Mineral Exploration Techniques 130
Geological Methods 138
Geochemical Methods 140
Geophysical Methods 151
Drilling Methods 158
References 167

vii

CHAPTER 5MINERAL RESOURCES AND RESERVES, AND

M I N I N G T E C H N I C A L S T U D I E S 169
Mineral Resources and Reser ves 170
Preliminar y Economic Assessments, Pre-feasibility and Feasibility
Studies 186
Reporting and Disclosure Standards for Exploration and Mining
Companies (Canadas NI43-101) 193
References 197
C H A P T E R 6 M I N I N G 199
Types of Mining Operations 200
Surface Mining (Open-Pit Mining) 204
Underground Mining 215
C H A P T E R 7 M I N E R A L P R O C E S S I N G 231
Crushing and Grinding 232
Treating GoldSilver Ores 237
Treating Base Metal Ores 244
C H A P T E R 8 E N V I R O N M E N TA L CO N S I D E R AT I O N S 253
The Modern Mining Environment 254
Sustainable Development 256
Environmental Assessment 259
Environmental Practices at Operating Mines 262
Acid Rock Drainage 266
Closure and Reclamation 268
References 274
C H A P T E R 9 E VA LUAT I N G
E X P LO R AT I O N CO M PA N I E S
A N D T E C H N I C A L N E W S R E L E A S E S 277
Evaluating Exploration Companies 278
Interpreting Technical News Releases 282
A P P E N D I X A CO N V E R S I O N FAC TO R S 287
A P P E N D I X B G R A D E A N D TO N N AG E TA B L E S 289
G LO S S A R Y 297
I N D E X 317

viii

P R E FAC E

The Mineral Exploration and Mining Industry

The mineral exploration and mining industry is a dynamic, high-tech and diverse sector that is vital to our modern world. It combines science and engineering 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.
The mining industry is a primary wealth creation industry. It provides the raw
products needed for almost all other sectors and it supports the economic development of countries and communities across the globe. The mining industry continuously strives to operate more efficiently and to limit its impact on
the environment, while supporting the economic and social development of
communities 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 technologies. The mining industry is not an industry of the past; it is an industry crucial to the present and the future. It is exciting to participate in and to learn
about.
This 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. The book provides an overview of the industry from exploration 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 informed 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.

Organization

The book is divided into nine chapters that more or less follow the typical
path of a mining project from exploration through mine development, operation 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 1 provides an overview of the mineral exploration and mining industry in a global context, introduces the participants
in the industry and discusses the sources of funding. Chapters 2 and 3 provide
a brief review of geology and mineral deposits. Because the mineral exploration and mining industry is built around evaluating and extracting rocks and

ix

mineral deposits, it is important to have a basic understanding of these technical topics. Where possible, the linkages between basic geology and mineral
exploration or mining applications have been highlighted. Chapter 3 also includes a survey of 10 common mineral deposit types that will serve as a valuable future reference. Chapter 4 discusses mineral exploration and includes
business aspects such as option agreements and technical aspects such as geochemical and geophysical surveys and drilling methods. Chapter 5 covers topics that represent the transition from mineral exploration to mining, including mineral resource and reserve estimates and feasibility studies. It also includes a review of Canadas national securities instrument 43-101 (ni43-101).
Chapters 6 and 7 discuss mining and mineral processing and review both surface and underground mining and the recovery of precious and base metals.
Chapter 8 touches on a number of environmental considerations that are important to the industry such as sustainability, environmental assessment, and
closure and reclamation. Chapter 9 outlines some of the factors that should
be considered when evaluating exploration companies and technical news releases, particularly from an investment point of view.

Acknowledgements

This 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 author developed for courses on mineral exploration and mining for the business and investment sector, and for governments and communities. The feedback from many participants in these courses was an important driver leading to the development of this book and their comments have significantly
improved the manual over the years. The first version of the manual was for
a British Columbia Institute of Technology (bcit) course called mine 1010:
Exploration and Mining for Investment Advisors and Investors. This course
is part of a collection of courses that the mining program at bcit has run in
partnership with the Association for Mineral Exploration BC (ame bc). Both
organizations are thanked for their support in the development of this book.
In particular, bcit is thanked for providing the author with the time and resources needed to complete this book, for providing a supportive and dynamic environment in which to work, and for its commitment to high quality education. Paul Razzell from the Learning and Teaching Centre at bcit provided invaluable help in editing and in the design and layout of the book.
Earlier drafts of this book have benefitted from the careful reviews by a
number of colleagues. The author would like to thank the following individuals for their support and for their improvements to earlier versions of the
book:

Barbara Henderson, Pacific Rim Mining Corp.

Paul Razzell, Learning and Teaching Centre; bcit
Michael Assouline, Raymond James Limited
Russell Hartlaub, Department of Mining and Mineral Exploration, bcit
Anoush Ibrahimi, Department of Mining and Mineral Exploration, bcit
Alex Doll, Alex Doll Consulting Ltd.
Greg Gossan, amec Americas Limited
An important part of this book is the photos, images and graphics that support the text. Many companies, individuals and organizations provided these
images, often spending time tracking down high resolution copies and suggesting interesting alternatives to images the author had selected. Kiska Metals Corporation and Teck Resources Limited are particularly acknowledged
for providing a large number of high quality photographs.
The author would like to acknowledge the following companies, organizations and individuals for providing images and other material for this book.
Aeroquest Surveys
Alex Doll
AMEC Americas Limited
Association for Mineral Exploration
BC
Atlas Copco
Aurelian Resources Inc.
Barrick Gold Corporation
BC Institute of Technology
BC Securities Commission
Bill Lebarge
Bryan Farbridge
Canplats Resources Corp.
Capstone Mining Corp.
Carol Stoker
Chris Rowan
Colin Dunn
Continental Minerals Corporation
The Crystal Caves
Derek Thorkelson
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.

xi

Placer Dome Inc.

Raw Materials Data
Rio Tinto
Robert Marschik
Roca Mines Inc.
Russell Hartlaub
Sandvik AB
Saskatchewan Research Council
Scott McAlpine
Sean McKinely
Selwyn Resources Ltd.
Siemens AG
Silvercorp Metals Inc.
Stealth Minerals Limited

xii

Teck Resources Limited

Tera Grady
Terrane Metals Corp.
ThyssenKrupp Fdertechnik
Timmins Gold Corp.
United States Geological Survey
(USGS)
Uranerz Energy Corporation
Vivian Hui
Wikimedia Commons
Wyoming Mining Association
Xstrata

M E E T T H E AU T H O R

Robert Stevens, Ph.D., P.Geo.

Robert Stevens on an outcrop overlooking Vancouver British Columbia in October, 2010.

Robert Stevens is a professional geologist who is well known for his involvement in the mineral exploration community in Vancouver and for delivering 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 British Columbia Institute of Technology (bcit), prior to which he was a faculty member and head of the Mining and Mineral Exploration Technology department at bcit for 10 years. He received his Ph.D. in geology from the University of Alberta with a focus on structural geology and tectonics, and an
Honours B.Sc. 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 sabbatical from bcit, he was the Executive Director of Geoscience BC; a position
that involved initiating and directing Geoscience BCs programs and development in its inaugural year. Dr. Stevens is passionate about the mineral exploration and mining industry and enjoys the mix of science, engineering, business, discovery and entrepreneurialism that are integral to the industry.

xiii

he mineral exploration and mining industry is a

dynamic, diverse and wealth-building sector in which
a wide range of people are involved professionally or
personally. 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 indispensable primer for anyone interested in the mineral
exploration and mining industry but who does not have
a background in the sector.
Need to make informed mining-related investment
decisions?
Want to better evaluate mineral development
proposals?
Interested in exploration, discovery, geology and
mining?
This richly illustrated book provides a thorough overview of the industry from the exploration phase to mine
closure and includes a comprehensive glossary.

r. 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.