Articles tagged with: exploration

64. Is Insitu Leaching the “Green Mining” Future

It is no surprise to anyone that permitting new open pit mines in today’s environment is getting more difficult and even impossible in some areas.   Underground mines also have their challenges, permitting as well as requiring relatively high grades to be economic.
So where might our future metal supplies come from?  What are the options?

Insitu leaching may be the answer

I recently came across an insitu leaching website, called BIOMore.  This was an initiative sponsored by the EU that looked at insitu leaching technology for metal recovery.    Environmental issues associated with mining in Europe, particularly open pit mining, raised concerns about how ore bodies in the EU might be developed in the future.
Insitu leaching technology was viewed as playing an important role.  This is due to its minimal surface disturbance, ability to operate at great depth, and its potential in urban and developed locations.  Sounds like a nice solution to have on hand.
The EU-funded BIOMOre research project was completed in 2018.  It was designed to develop a new technological framework for the insitu recovering of metals from deep deposits.  The process would rely on controlled stimulation of pre-existing fractures in combination with insitu bio-leaching.  The study mainly focused on the application of existing technologies.

Fracing will be an issue

Insitu leaching essentially relies on exposing mineralized surfaces to leach solutions.  This may require hydro-fracturing (fracing) to enhance insitu bio-leaching using bacteria and acid.   Fracing is currently banned in some European countries so this is going to be a potential issue.  From a leaching perspective, the trade-off would be between no fracing, reduced cost & lower metal recovery against higher cost & higher metal recovery with fracing.
If insitu leaching technology development is successful, it could help exploit European base metals from porphyry deposits (Cu, Au, Mo, Cu, REE, PGE, Re, Pb, Cu, Pt, Au) and other gold and uranium deposits.   Insitu leaching would avoid building a mine, mine infrastructure, and it generates almost no tailings nor waste dumps.  Leaching is expected to be cheaper than traditional mining and more acceptable to the public. Insitu leaching is being touted as “Green Mining”

What did they conclude

This study deliverables included comprehensive documentation, an economic evaluation, and risk analysis of a potential insitu bio-leaching operation.  The basis was a theoretical deposit, looking at different well field set-ups.
The study concluded that accessing potential deposits at depths of around 1000 m is economically feasible only if curved wells are used.  The most relevant operational parameters are sufficient permeability in the ore zone and an adequate contact surface between the ore and leaching solution.   The depth of the deposit is indirectly relevant, but more importantly the well installation cost per volume of deposit is critical.  Hence curved wells are optimal.
One interesting suggestion was combining an insitu leach operation with geothermal energy recovery.  This might result in additional project revenue stream with only a marginal cost increase.
It was suggested that insitu leach operations might be attractive in former mining regions where high grade deposits have been mined out yet nearby low grade deposits are well defined. Social license for insitu leaching may also be more accepting in these areas.
If you are interested in learning more about insitu leaching technology and the chemistry aspect, the BIOMore study deliverables are available for downloading at this site.
In the past, mining engineers like myself were told to learn the basics of crushing, grinding, and flotation to become more well rounded.  I may suggest that future mining engineers may need to learn the basics of directional drilling, hydro-fracing, and chemistry.  Sounds like petroleum engineering.

Some aspects are still uncertain

In practical terms, some things are still not clear to me. For example are how much effort and diligence must go into properly characterizing the permeability of a rock mass.  As well, how complex a task is it to metallurgically characterize the deposit spatially with regards to it being amenable to insitu leaching.  Not all ore types will behave the same and be amenable to leaching.
I am also curious about the ability to finance such projects, given the caution associated with any novel technology.  Many financiers prefer projects that rely on proven and conventional operating methods.
Notwithstanding those concerns, likely insitu leaching technology will continue to advance and show even more promise, and eventually gain greater acceptance.
While some innovators are looking at new ways to drill, blast, and move rock, the real innovators are looking at ways to recover metals without moving any rock at all.
For those interested, Excelsior Mining is looking to open a copper oxide insitu leaching operation in Arizona.  Here is video of how their technology will work.
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62. AI versus the Geologists

We likely have all seen recent articles about how Artificial Intelligence (AI) is going to change the mining industry.   I have been wondering if AI is a real solution or just a great buzzword.   My original skepticism has diminished somewhat and let me explain why.
At a booth at the 2019 PDAC I had a chance to speak with a publicly traded company called Albert Mining (referencing Albert Einstein’s intelligence).  They are providing exploration consulting services by applying a form of AI and have been doing so for many years.  The company has been around since 2005 but were not using the term AI to describe their methods.
These days the term “AI” has become very trendy.  Currently IBM Canada and Goldcorp are using Watson and AI to further their exploration efforts on the Red Lake property. GoldSpot Discoveries is another recent player in the mining AI field.  It appears Goldspot offers something similar to Albert Mining but they extend their platform to include picking projects, picking teams, and picking investments. That’s a lot of analysis to undertake.  Albert Mining is focused solely on mineral exploration.

Here is what I learned

Albert Mining’s system, called CARDS (Computer Aided Resource Detection System) uses pattern recognition and multi-variate analysis to examine a mineral property to look for targets.     The system requires that the property has some known mineralization hits and assay samples.  These are used to “teach” the software.   Both positive hits and negative hits are valuable in this teaching step.
The exploration property is sub-divided into cells and data are assigned to each cell.  These data attributes could be derived from geophysics, geochemistry, topography, soil samples, indicator minerals, assayed samples, geological maps, etc.  I was told that a cell could contain over 700 different data attributes.
The algorithm then examines the cell data to teach itself which attributes correlate to known mineralization and which attributes correlate with barren areas. It essentially determines a geological “signature” for each mineralization type.    There could be millions of data points and combinations of attributes.  Correlation patterns may be invisible to the naked eye, but not to the computer algorithm.
Once the geological signatures are determined, the remainder of the property is examined to look for similar signature hits.  Geological biases are eliminated since it is all data driven.   The newly defined exploration targets are given a ranking score based on the extent of correlation.
Some things to note are that the system works best for shallow deposits, unless one has some deep penetrating geophysical surveys.  The system works best if there is fairly uniform data coverage across the entire property.  The property should also have generally similar geological conditions and as mentioned before, the property needs to have some mineralized assay information.
This exploration approach reminds me somewhat of the book Moneyball.  This book is about the Oakland A’s baseball team where unconventional statistics were used to rank players in order to find hidden gems.

Are geologists becoming obsolete?

I was told that many in the geological community tend to discount the AI approach.  Either they don’t think it will work or they are fearing for their jobs.  Personally I don’t understand these fears nor can I really see how geologists can ever be eliminated.  Someone still has to collect and prepare the data as well as ultimately make the final decision on the proposed targets.   I don’t see the downside in using AI as another tool in the geologist’s toolbox.
Albert Mining’s stock price has recently gained some traction (note: I am not promoting them)  because junior mining news releases are starting to mention their name more often (Spruce Ridge Resources and Falco Resources are some examples).
Probably years ago if a mining company said their drill targets were generated by an algorithm, they might have gotten strange looks.   Today if a mining company says their drill targets were generated by AI, it gives them a cutting edge persona.  Times have changed.

In conclusion

I suggest we all take a closer looks at the AI technology to better understand what it does.
P.S. I  might also suggest that Albert Mining consider revising their company name to incorporate the term “AI” to stay on trend.
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57. The Mining Bank or eBay for Mining Properties

mining properties
I recently attended the Money Show here in Toronto to learn a bit more about personal finanace, investing strategies, and to check out  the latest stock analysis software.
There was also a trade show, but only one mining company booth was present.  This definitely wasn’t the PDAC.  Interestingly there were about five marijuana company booths, so that is where the promotion is today.
The lone mining company was Globex Mining, here is their website.  They referred to themselves as a “mining bank”, so that was something that peaked my interest.

Mining bank

Speaking with their president, Jack Stoch, he gave me an overview on their business model.  As I understood it, GLOBEX’s model is to acquire a portfolio of mineral properties.  They would try to enhance their value by undertaking some limited geological work.  Finally they would option, JV, or sell the property while retaining an NSR royalty.
Mr. Stoch told me that Globex currently has over 140 land packages in their inventory.  Their properties will be at different stages.  Some have resource estimates, others only mineralized drill intersections, mineral showings, untested geophysical targets, or combinations of these.
They are focusing their acquisitions on lower risk jurisdictions like Quebec, Ontario, Nova Scotia, New Brunswick, Tennessee, Nevada, Washington, and Germany.  They try to acquire historical mines that have old shafts, following the adage the best place to find a new mine is next to an old mine.   They also have some industrial mineral properties.

 

Globex’s only NSR revenue property right now is a zinc project in Tennessee that can generate a seven-figure royalty each year, when that operation is up and running.  Unfortunately for Globex the zinc operation has not been in consistent operation the last few years.

Its a good concept

I like the concept that Globex are promoting.  I like the idea of having a one-stop shop that acquires and options out exploration properties to mining companies looking for new projects.
I also like the idea of trying to consolidate land packages in an area,  minimizing the patchwork of multiple ownership claims that can hinder advanced development.
Globex hope that by putting time and effort into a bunch of properties a few of them will pay off.  If they can generate sufficient NSR revenues, the company may get to the self-sustaining stage.

Its not a new idea

The idea of companies involving themselves in a portfolio of early stage prospects isn’t new.  This has been being done by EMX Royalty Corp (formerly Eurasian Minerals) for properties around the globe.    Abitibi Royalties is also doing something vaguely similar, whereby they would help fund prospectors in exchange for a long term royalty on a property. There are likely others.
There is a high risk to being successful but the cost of entry is relatively low.
It will be interesting to watch Globex over the longer term to see how many properties they can acquire and how many of these will pay off. Spending a bit of money on mapping and exploration on a property may benefit them by increasing value in the eyes of potential partners.
Statistically, mineral exploration is a high risk game but by limiting expenditures and diversifying the portfolio, some of that risk can be mitigated.
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