200 Pans = 1 cubic metre
1 cubic metre = 2 tonnes
1 gram Au = $50 US
10 flyspecks = 1 milligram (dust)
1 A colour = 1 – 2 milligrams (ball point pen)
There are no B or C colours, and no nuggets
> 1 cent
< $1
150 episodes over 5 seasons
5-10 minutes education - 30 minutes drama
Yukon miners better
Artisanal & Small-Scale Mining
Bigger industry than you may think:
• 20,000,000 directly employed
0
5
10
15
20
25
30
ASM Share (%) of Global Mineral
Production (ICMM 2012)
3TG
“Conflict
minerals”
2005 Artisanal Gold
Production (Tonnes)
Columbia 21.6
Mexico 7.4
Ghana 6.9
Brazil 6.1
Tanzania 5.0
Bolivia 3.5
Papua New Guinea 3.2
Rural development, alternative
livelihoods & ‘green gold’
Green, FairTrade Gold
Artisanal certified ethical standard (ARM) Social & Environmental standards $ Premium
Small mining is beautiful – MarcelloVeiga, UBC Professor
Placer Economics
Commodity Quantity Price ($ US) Value ($ US Million)Note
Alluvial Gold 6,300,000 ounces 1,250per ounce $ 7,875 7% of 90 Moz Hard Rock
Total (mod from USGS, WGC
etc)
Titanium 2,400,000 tonnes 900per tonne $ 2,160 High grade TiO2/FeTiO3 feed
(mod from Credit Suisse)
Zircon 1,200,000 tonnes 1,100per tonne $ 1,320
Diamonds 13,200,000 carats 300per carat $ 3,960 12% of 110 Mct gem (mod.
From Bain)
Tin 100,000 tonnes 25,000per tonne $ 2,500
40% of 250kt est. (mod from
ITRI)
$ 17,815
Also: REEs, critical metals (tungsten,coltan)
Significant Market & Good Prices
333
137
111
26
17
0 50 100 150 200 250 300 350
Iron
Gold
Copper
Silver
Potash
Nickel
Phosphate
Zinc
PGMs
Diamonds
Others
Value of Global Metal Production 2011 ($ US Billion)
Source: ICMM 2012
Geophysics? Unlikely…
Ground Magnetometer – variable success, lots of false positives. Metal detecting is
a hobby.
Seismic – successful in simple, homogenous conditions (Valdez Creek 460,000
ounces placer gold) but can be expensive, complex
Ground Penetrating Radar – Same, but less success
LIDAR – Useful in characterizing geomorphology and locating features (channels,
terraces, historic workings) but too expensive. Satellite imagery good enough.
Drilling must be done anyway, so most operators don’t bother with the distraction,
complexity, risk, and high costs.Cheap methods needed.
Prospect Explore & Develop Mining Reclaim
Geochemistry & Geomorphology
Again – not much use yet…
Geochemistry
Defining gold signatures, lode mineralization types,
spatial and temporal evolution
Identify hard-rock lode sources
Geomorphology & Grain Morphology
Morphology: Particle Size & Shape = Distance
Magadan success Arc GIS today?
Flume tank modelling to understand deposition
Improve knowledge of geological controls, better models
WhiteChannel Gravels inYukon
Prospect Explore & Develop Mining Reclaim
Pan Color Count
Color
Category
Abbreviati
on
Mass (mg) Description
Micro-
flyspeck
Mf 0.03 (30 = 1 mg) Cannot see 30cm away, must squint close-up;
fine dust; flat and flaky
Flyspeck F 0.1 (10 = 1mg) Specks visible 30cm away; flat or flaky
A Colour A 1-2 ~1mm diameter, ball-point pen sized
B Colour B 2-5 Up to ~2mm, elongate or spherical in 3
dimensions
C Colour C 5-25 Up to 3mm, smaller than pea grain, clunk
sound
Nugget Nug +25, weigh
individually
Heft in hand
31
Estimating Particle Mass Using Size Classification
Blue is Best
Prospect Explore & Develop Mining Reclaim
Grades and Resources
• Measured in volume not
tonnage
• Square ft. of bedrock
• LOW GRADE:
• 0.3 g/m3……………0.01 oz/yd
(equivalent to 0.1 – 0.2 gpt ore)
• $10 per yard
• Fineness (850? 950? 700?)
• Cut-off pan: 2 mg
• 20 flyspecks, or:
• 1 – 2 ‘A’ colours, or:
• 1 ‘B’ colour, or:
• 60 micro-flyspecks
• 500 – 500,000 ounces
• 10,000 – 100,000 oz
• Depth?
• How much overburden-muck?
• 0 – 200 feet, 1000 ft.???
• Frozen or thawed?
• Multiple paystreaks?
• Old workings?
• Clay? Boulders?
• Fine grained or nugget, flat or
round grains?
Prospect Explore & Develop Mining Reclaim
Eluvial
• Weathering/Leaching in-situ on hill
slopes and outcrops
• Rain, wind, percolating waters, heat,
chemical and biological degradation
• Upgrading through removal of
soluble minerals or sheet flow
Colluvial
• Located at base of hill slopes
• Downslope movement of weathered
rock, wind, rain, freeze-frost action
• Poorly sorted and erratic grade and
size distribution
• Rarely economic
• Mkuvia placers in SouthernTanzania?
Prospect Explore & Develop Mining Reclaim
Fluvial, Bench &Terrace: Stream Placers
Classic, most common, and most important
River, stream, creek, gulch and relicts (bench or terrace)
Lighter particles winnowed away while heavy minerals
concentrate on bedrock, or
• inside bends and areas of lower velocity-pressure -gradient
• Crevices, boulders and other natural traps
Slatey, vertical bedrock good; rough & irregular good.
Usually formed within few kilometers of source rock
• Grain morphology and inclusions to relate placer to lode (R.
Chapman, Mortenson, etc.)
With distance, particle sizes reduce and sorting improves,
UNLESS it is re-worked, glaciated, or disturbed
36Prospect Explore & Develop Mining Reclaim
Deep, Buried Channels
• Can be High Grade!!!
• Valdez Creek, Alaska 1981
• Most productive in N.America
• 100,000 oz Au/year
• 9 year mine life
• 10 oz/yd3
• 15 ft. pay sections
• Formed by Alaska Range uplift
causing southward stream
migration
• Seismic survey and drilling
discovered channel at 165 ft.
40Prospect Explore & Develop Mining Reclaim
Alluvial Fan
•Aggradational placer - depositing
high-grade pay into thick section of
low-grade pay (100 ft. +)
•Patchwork of lenses and highly
erratic local concentrations Bulk
•Little Squaw, Alaska Canyon, Bench
and Alluvial Fan
• 200,000 oz Au @ 0.02 oz/yd3
• 200 ft. thick but 100 ft. till overburden
41Prospect Explore & Develop Mining Reclaim
Beach Strandline & Marine
• Sorting action of waves, tides, currents and winds concentrating heavies along lines
• Offshore deposits scoured by glaciers, sorted by tides, concentrated in storms and re-worked by
fluvial processes
• NomeCoastal Plain, Alaska AnglogoldAshanti
• Discovered 1899, hand-miners 1-5 oz/day from beach
• 5-6 M oz historical production
• Current resource: .5 - 2.5 M oz @ 0.002 oz/yd3
42Prospect Explore & Develop Mining Reclaim
Other PlacerTypes
• Desert – wind principal transport & concentration agent although flash flooding
can locally enrich
• Most scams occur in the desert (stay away fromArizona!)
• Glacial – rare economic concentrations
• Unsorted, unstratified, high-clay
• Moraines, tills and shorelines
• Yukon, but nothing significant in Alaska
• CoastalAeolian – sand dune systems
• Richards Bay (ilmenite, rutile, zircon)
44Prospect Explore & Develop Mining Reclaim
Heterogeneity and Nugget Effect
47
Proportion of Ore Mineral versus Homogeneity
E= Evaporite; C= Coal; Fe= Bedded Iron Ore; P=Phosphate; B=Bauxite; PbZn=Stratiform lead-zinc;
Ni=Stratiform Ni; SSn=Stratiform tin; PC=Porphyry Copper; VSn=Tin veins; V=Gold, Silver veins; U=Uranium;
D=Diamonds; AD=alluvial diamonds (After Haddon King et al 1980)
High
LowHigh
Low
ProportionofOreMineral
Homogeneity
E
C
Fe
B
P
Ni
SS
n
VS
n
VD
AD
PC
U
Source: King, McMahon & Bujtor CRA
(Australia) 1980
Nuggety
Creeks
Fans,
Terraces
Flood-
plains,
Offshore
Prospect Explore & Develop Mining Reclaim
How DoYou Raise Finance? Ex: Petropavlovsk
Equivalent ‘ore’ grades: 0.1 - 0.18 g/tonne
Disposed assets for $25 M b/c high alluvial cash costs $1,319/oz
Prospect Explore & Develop Mining Reclaim
Exploration Methods - Drilling
49
Banka
Auger
Churn
Hammer & RAB
RC
Double Cased
Hammer
Sonic
Which one do you choose?
• 3in. – 12in. (8in. Minimum in >60 mesh)
• $5/ft - $90/ft
• Penetration rate – gold loss/migration –
recovery -
Boart Longyear Sonic
Mini-Auger
Banka
Prospect Explore & Develop Mining Reclaim
Bucket-Ladder Dredge
Over 100 in AK
Continuous,
high volume
Mercury, then
trapezoidal jigs
Prospect Explore & Develop Mining Reclaim
Problems:
Water
Climate
Bima Dredge, Nome
1987 – 1990
World’s largest dredge
Marine deposits
118,000 ounces
Built for MalaysianTin
Failed due to severe
conditions – Arctic
Storms!!!
Prospect Explore & Develop Mining Reclaim
Advice
1. Maintenance, Maintenance, Maintenance!
2. Do Not Fire Assay Placer Gold
3. Washplant Design – K.I.S.S.
4. Coarse Gold ≠ Fine Gold
5. Sampling Evidence and Production History
90Prospect Explore & Develop Mining Reclaim
Barry Clay with the 294oz
Centennial Nugget found
whilst on his dozer!!!