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Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM -- Ignore unavailable to you. Want to Upgrade?


To: Ptaskmaster who wrote (6771)12/3/1998 6:03:00 PM
From: Chuca Marsh  Read Replies (2) | Respond to of 11603
 
I know, I no, I am, I will be more or less...either way...I am what I am. So, with that said. It is the Blues of the Paleo Channels that will show the mapping and the Carbon Recovery Techniques which are really just standard tech. Here, someWHERE I posted about a NM article on Santa Fe in Fall 1996 that got be thinking carbon pads and the importance. Just a month ago, SOMEwhere here I asked if anyone had that NM CD Rom of the old editions, well, over at Naxos ...MR J.E. Currie came up with it from a reference to his Carlin Thread. Santa Fe was bot out by Newmont and the Complex Mineralizations are explained much better in his post I wil reference and the NEM paste and URL I add here:
Jim Curries' great post ( I glad I met him at Ol' IPM )
Speaking of IPM and why I am a little energetic, I will now allow some self promotion on our CB/RF claims, as this is the area that I found 100 miles from Maxam/Black Rock using a geological model of elements to search for as well as all my ( our 5 different claim groups with the claims filed this week taking us to about a hundred claims<many near Maxam/Windstar Claims>) And yes I do have confirmation in my minds eye, Jon)( A Picture is worth a thousand words and a journey of a thousand miles starts with that first step.) :(I see similarities that are near Maxam Claims...not necessarilry P-7 but enough)
server2.powernet.net
server2.powernet.net
server2.powernet.net
Can you see that now we can..( I will promote the fact that we just filed and completed CB amd RF. Chuca Going For The Hots! Hundred=thousands=millions??? ?...TIME=TIME=TELL) Ok , will tell)
CB is name after my rear, so say half my office here, Chuca Butte )( I didn't name it)

Message 6663466
newmont.com
The foundation of Newmont's technical expertise
and operational strength lies in the high desert of
north central Nevada, where the Carlin Trend
accounted for 75 percent of the company's equity
gold production in 1996.



It was the seventh consecutive year that gold production at Carlin exceeded 1.5 million ounces and, at 1.7 million
ounces, marked Newmont's highest output in its 31 years on the Trend.

Equally important, continued exploration success added 1.3 million ounces to proven and probable reserves after
mine depletion, bringing reserves to 22.1 million equity ounces, the highest in the company's history. With an
additional 9.6 million equity ounces in mineralized material not yet in reserves and several new targets discovered
by drilling in 1996, the future of the Trend promises to be as prolific as its past.

For all its success, 1996 was a transitional year on the Carlin Trend. Surface deposits of the easier to process
oxide ores are being depleted and, increasingly, new production is coming from complex refractory ores that
require pretreatment before the gold can be recovered. Gold produced from underground mines nearly tripled
from 1995 to 306,800 ounces. Production through the refractory ore treatment plant, or roaster, rose 52 percent
to 540,000 ounces. The company also demonstrated the commercial success of two patented processes for heap
leaching low-grade refractory ores using bio-oxidation and the direct application of ammonium thiosulfate.

Newmont's Carlin operation has become as complex as its ores. The company operates 11 open pit mines — the
largest, Gold Quarry, is a mile and a half wide and 1,000 feet deep — four underground mines, three oxide mills,
the roaster and three heap leach operations. Sophisticated computer modeling, a robotics laboratory that assays
two million ore samples a year and increasing use of stockpiles to segregate ore by grade, sulfur and carbon
content are necessary to optimize operations. Newmont employs 2,283 people at Carlin and has invested nearly
$1.7 billion in capital there since 1963.

Total cash costs, including operating expenses and royalties, increased $20 to $243 an ounce during 1996, but
declined in the second half of the year as ore grades increased and technical difficulties at the roaster were
overcome. In 1997 as higher grade ore is mined from the Deep Post deposit, production is expected to reach 1.8
million ounces at a total cash cost of about $210 an ounce.

During 1996, the company mined 242 million tons of rock — 142 tons for each ounce of gold produced. Of that,
11 million tons of ore were milled, 42 million tons were placed on leach pads and five million tons were stockpiled
for future processing. The remaining material was recontoured, vegetated and reclaimed to match the natural
terrain.

Four new open pit deposits — Bootstrap, Beast, Lantern, and Sold — came into production during the year and
full-scale operations were achieved at Deep Star, the company's highest grade underground mine.

The refractory ore treatment plant, or Mill No. 6, the largest facility of its type, is pivotal to Newmont's future. It
accounted for almost a third of the company's Nevada production in 1996 and will account for more than 40
percent in 1997. Originally designed to process 8,000 tons of ore per day, the roaster consistently demonstrated
its ability to operate above that level, and at times, operated above 10,000 tons per day.

Newmont expanded its refractory leach capabilities during the year by refining its bio-oxidation technology and a
separate process that utilizes ammonium thiosulfate to treat carbonaceous ores. Both processes are designed to
economically extract gold from low-grade refractory ores that otherwise would be considered waste. During the
year these processes yielded 28,000 ounces of gold. Construction of a $96 million, eight-million-ton refractory
leach pad will begin in 1997 with annual production of 250,000 ounces of gold expected by 1999.

Bio-oxidation involves the inoculation of ore with naturally occurring bacteria that over a period of six to 12
months oxidize the sulfides that encase the gold. The ore is then moved to a second heap leach pad for gold
recovery through a conventional cyanide circuit. Ore with a high carbon content, however, cannot be treated with
cyanide, but can achieve high recoveries when treated with Newmont's ammonium thiosulfate process.

Newmont owns or leases 628 square miles of land on the Carlin Trend, extending along a 38-mile
north/northwest alignment of mixed calcareous and silicious rocks. It is some of the most highly endowed gold
acreage in the world.

Newmont geologists aggressively pursued the Trend's potential in 1996, spending $23 million to drill 723 holes
reaching the equivalent of 101 miles in depth. During the year, 3.8 million ounces (2.6 million equity ounces) of
gold were added to reserves from the Deep Star, West Leeville/Four Corners and Hardie Footwall underground
deposits just north of the original Carlin open pit mine in the center of the Trend.

Reserves and inferred resources were also added at Rain, an underground oxide mine at the south end of the
Trend, where exploration extended the mineralized strike length by 3,000 feet. In August, Newmont acquired the
remaining 25 percent interest in a property contiguous with the northwest end of the Rain mineralization. The
proven and probable reserves in the low-grade oxide Emigrant Springs deposit, near Rain, doubled to an
estimated 370,000 ounces.

The Pete deposit, southeast of the Carlin pit, more than doubled in size to an estimated 390,000 ounces of proven
and probable reserves. Even more significant was the increase in mineralized material not yet in reserves as drilling
defined high grade deposits of both oxide and refractory ore. Pete will be developed as an open pit mine, with
production likely in 2001. Drilling also established the Fence deposit as a down-dip extension of Pete with both
surface and underground targets.

At Turf, northwest of the Leeville deposit, 12 holes greatly expanded the known mineral inventory, including the
addition to mineralized material of 2.5 million tons of ore at a grade of 0.367 ounce per ton. An additional 15
holes will be drilled in 1997 to continue to expand this highly prospective area.

To the north of the Post deposit, drilling in the Goldbug area doubled the mineralized material not yet in reserves
to 5.7 million tons of mineralization at a grade of 0.288 ounce per ton, and increased the inferred resource base to
several times that amount. This inferred resource consists mostly of low-grade refractory material for which
economical metallurgical recovery methods are being tested.

During the year, Barrick Goldstrike Mines conveyed to Newmont a property contiguous to the Deep Star Mine
as part of a settlement regarding water disposal on the Carlin Trend. The settlement also set the foundation for
continued long-term cooperation in development of the Carlin Trend properties.




To: Ptaskmaster who wrote (6771)12/3/1998 8:32:00 PM
From: Richard Mazzarella  Read Replies (2) | Respond to of 11603
 
Ptask, <<mapping technology>> Maxam is exploring new methods to map their precious metal deposits. Just a few years ago many followers of the desert dirts believed that the precious metals were homogeneously deposited in the desert. Just go out and drill a pattern of holes and then calculate a reserve. Seems simple enough, but dead wrong. That simple minded conventional thinking may even be one of the reasons why IPM failed IMO. Maxam is discovering that the metals in the desert dirt are distributed in ancient channels which they call paleo-channels. The deposits are complex alluvial minerals that may have been formed by ancient water flows. These paleo-channels are equivalent to veins in hard rock mining.
The mapping techniques consist of both magnetic where an airplane flies over the ground in a grid pattern measuring the strength of the magnetic field and mobile ion mapping where the conductivity of the ground is measured. Each of these methods has an advantage, the magnetic is very low cost and fast to complete, but has the disadvantage of being limited in depth. The mobile ion mapping has value to determine metals deeper than the magnetic method. Combining both these methods against a limited assayed drill program "calibrates" the mapping. Maxam has already conducted an internal mapping calibration and is now doing a chain of custody (COC) mapping test.
What are the benefits? First, if successful, Maxam will have a very low cost method to determine their reserves to 20ft on all their properties. It's much much lower cost than drilling. They can also determine the high grade ore regions to be mined first. Let's assume that it's a fixed costs to process a ton of ore. If head ore that is processed has 10-20 times the normal background value OPT (0.05 OPT) can be processed, the profit leverage is enormous. That's very important to hedge the start-up of the operation and make significant profit early. There is even the possibility that the BLM will eventually accept paleo-channel mapping as a proxy for drilling the alluvial desert dirts as more mapping data comes in. A new chapter in precious metal mining may occur.
What does a paleo-channel map look like? This link show the current COC map area (thanks to Chuca): homepages.infoseek.com an enlargement of the COC area: homepages.infoseek.com . Do you see the large central hole labeled A1? That's a conventional drill hole that measured 1.2 OPT head ore! Do you now understand our comments about loving the blue areas of the map? I must also mention that there is good OPT in the yellow.
Well, that's my simple minded explanation of the paleo-channel mapping. Hope it helps.