Mineral Exploration
and Mining Essentials
Robert Stevens
Min e r a l E xpl or at ion
a n d Min in g E s se n t ia l s
Min e r a l E xpl or at ion
a n d Min in g E s se n t ia l s
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 data-
base or transmitted in any form by any means, electronic, photocopying, re-
cording 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/min-
ing 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 engi-
neering. 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 Gold’s 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 1—INDUSTRY 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 5—MINERAL 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 (Canada’s 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
CHAPTER 7—MINERAL PROCESSING 231
Crushing and Grinding 232
Treating Gold±Silver 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
INDEX 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 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.
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 de-
velopment of countries and communities across the globe. The mining indus-
try 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 technol-
ogies. The 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.
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 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.
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, 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 1 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 2 and 3 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
ix
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 3 also in-
cludes a survey of 10 common mineral deposit types that will serve as a valu-
able reference. Chapter 4 discusses mineral exploration and includes business
aspects such as option agreements and technical aspects such as geochemi-
cal and geophysical surveys and drilling methods. Chapter 5 covers topics that
represent the transition from mineral exploration to mining, including min-
eral resource and reserve estimates and feasibility studies. It also includes a re-
view of Canada’s national securities instrument 43-101 (ni43-101). Chapters 6
and 7 discuss mining and mineral processing and review both surface and un-
derground 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 sustainable development, environmental assessment, and
closure and reclamation. Chapter 9 outlines some of the factors that should
be considered when evaluating exploration companies and technical news re-
leases, 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 au-
thor developed for courses on mineral exploration and mining for the busi-
ness and investment sector, and for governments and communities. The 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. 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 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 Teaching Centre at bcit provid-
ed 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 individ-
uals for their support and for their improvements to earlier versions of the
book:
x
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 sup-
port the text. Many companies, individuals and organizations provided these
images, often spending time tracking down high resolution copies and sug-
gesting interesting alternatives to images the author had selected. The Geo-
logical Association of Canada, Kiska Metals Corporation and Teck Resources
Limited are particularly acknowledged for providing a large number of high
quality images and photographs.
The author would like to acknowledge the following companies, organiza-
tions and individuals for providing images and other material for this book.
Aeroquest Surveys Diamonds North Resources Ltd.
Alex Doll Diavik Diamond Mines Inc.
AMEC Americas Limited Equity Exploration Consultants Ltd.
Association for Mineral Exploration Flassig Reiner
BC G. Wilson
Atlas Copco Geological Association of Canada
Aurelian Resources Inc. Geological Survey of Canada
Barrick Gold Corporation Geovic Energy Corp.
BC Institute of Technology Gold One International
BC Securities Commission Highland Valley Copper Mine
Bill Lebarge, Yukon Geological Imperial Metals Corporation
Survey International Institute for
Bob Anderson Sustainable Development (IISD)
Brian Grant James Leader
Bryan Farbridge Kirstie Simpson
Canplats Resources Corp. Kiska Metals Corporation
Capstone Mining Corp. Malik L. Papis, Greengems
Carol Stoker Mark Roden
Chris Rowan Marli Miller
Colin Dunn Metals Economics Group
Continental Minerals Corporation National Institute for Occupational
The Crystal Caves Health and Safety (NIOSH)
Derek Thorkelson
xi
National Oceanic and Atmospheric Sean McKinley, Cambria
Administration Geosciences Inc.
Natural Resources Canada Selwyn Resources Ltd.
Newmont Mining Corporation Siemens AG
Northern Freegold Resources Silvercorp Metals Inc.
NovaGold Resources Inc. Stealth Minerals Limited
Pacific Rim Mining Corp. Teck Resources Limited
Placer Dome Inc. Tera Grady
Randgold Resources Terrane Metals Corp.
Raw Materials Data ThyssenKrupp Födertechnik
Rio Tinto Timmins Gold Corp.
Robert Marschik United States Geological Survey
Roca Mines Inc. (USGS)
Russell Hartlaub Uranerz Energy Corporation
Sandvik AB Vivian Hui
Saskatchewan Research Council Wikimedia Commons
Scott McAlpine Wyoming Mining Association
Xstrata
The Association for Mineral Exploration BC is
acknowledged for supporting the development
of this book.
xii
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 (photo by
Scott McAlpine).
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 Technology (bcit), prior to which he was a facul-
ty member and head of the Mining and Mineral Exploration Technology de-
partment at bcit for 10 years. He received his Ph.D. in geology from the Uni-
versity 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 sab-
batical from bcit, he was the Executive Director of Geoscience BC; a position
that involved initiating and directing Geoscience BC’s 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.
xiii
T 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 indis-
pensable 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 over-
view of the industry from the exploration phase to mine
closure and includes a comprehensive glossary.
D r. Robert Stevens is a professional geologist and
the 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.
