When you think of mining gold the first thing to come to mind is probably people in hard hats, working in a mine. Though this is a crucial step in mining gold, it is only one step in a long process. There are a number of measures that need to be completed before any gold can be extracted from a gold mine.
Exploration and development need to take place to determine the size of the mineral deposit as accurately as possible. An evaluation also needs to take place to determine how to safely and efficiently extract the ore.
When written out, this process may not seem that complicated. But it can take up to 10-20 years after a mineral deposit has been discovered before a gold mine is able to produce the material that is refined into bullion.
There is a great deal of complexity and challenge involved in gold mine exploration. The entire process can take anywhere between 1-10 years. As a result, it requires significant time, financial resources, and expertise in numerous disciplines, such as geography, geology, chemistry, and engineering.
As well, once a discovery is made the chance of it leading to developing a mine is very low. To be exact, less than 0.01% of discoveries will lead to a productive mine. On top of that, only 10% of global gold deposits that contain gold are high enough quality to develop.
After basic facts about local geology and the potentiality of the deposit being viable are established, then the gold ore body can be assessed in detail.
What is the purpose of infill drilling? Infill drilling provides mining companies with drill results, which are a mineral resource estimate that help identify the level of confidence in the mineral resource. To strengthen confidence in the mineral resource, infill drilling helps evaluate whether the mineral resource is continuous across widely dispersed intercepts. Samples that are take from infill drilling are analyzed in a laboratory, which determines the amount of gold or other precious medal that are in the desired area. Included in all recourse estimates are all the levels of confidence, including indicated, inferred, and measured amounts. Typically, measured resources are chosen because they have the highest level of confidence.
Inferred Mineral Resource is a category of a mineral resource that an estimate of grade, quality, or quantity is based on limited sampling of geological evidence. These assumptions are held within reason, but are not verified. Areas that typically work with Inferred Mineral Resources are outcrops, pits, trenches, and drill holes.
Unlike Inferred Mineral Resource, Indicated Mineral Resource is used to describe the category of mineral resource that can be estimated by qualified persons to its grade, quality, quantity, and shape. This estimate will come with a certain level of confidence that supports the ore deposit being economically feasible. Indicated Mineral Resources comes with this level of confidence of accurate data that can assume geological continuity through extensive testing.
An area of a Mineral Resource that has well-established quantity, grade, density, shape, and physical characteristics to support production planning and economic feasibility can be considered a Measured Mineral Resource. This estimate is based on exploration, sampling, and testing data from sites such as outcrops, trenches, pits, workings, and drill holes spaced close enough to ensure continuity in grade.
Once a resource estimate has been completed with a high level of indicated and measured mineral resources, mining engineers work on a plan for extraction (either open-pit or underground methods) and assess the economic feasibility of the mineral resource. The mining cycle will move forward if it is economically feasible to extract the resource.
The next step in the gold mining process is gold mine development which can take between 1-5 years to complete. In this stage, trained personnel are planning the construction of the mine. Before mining companies can begin any construction, they must have a detailed plan, and obtain the appropriate licenses and permits. The process can take several years to complete but the exact timing will vary depending on the location.
It is possible that construction will extend beyond the mine. Mining companies frequently build local infrastructure and amenities in addition to processing capacity in order to support operational needs, employee welfare, and employee morale. One of the most important ways gold supports wider socio-economic development is through this development, which provides long-term support for local communities.
Gold mine's mining operation represents the stage during which ore is extracted and processed into gold, which can take between 10-30 years. In order to process gold, rock and ore must be transformed into a metallic alloy with a substantial gold content - called doré - typically in the range of 60-90% of gold.
A number of factors determine whether an ore body is profitable (economic) to mine during its life cycle, including gold prices and input costs. A higher gold price will make mining low-grade ore profitable as the higher gold price will offset the additional costs associated with extracting and milling large volumes. Higher-grade ores might only be profitable to extract and process when prices are low or costs rise. Every so often, mine plans are reevaluated in light of changing market conditions, new technical information, and improvements to processes and technology.
As well, as technology advances, gold mining techniques are becoming smarter, efficient, and better for the environment. Electrification, digitization, and automation are becoming extremely common elements that have reshaped the operations and processes within gold mines.
In open-pit mining, the drilling results that were collected from the infill drilling are used to create a resource model that specifies the parts of the mineral resource that will be extracted from. After this plan is complete, miners will start to drill. Using heavy machinery, benches which are wide steps that separate rocks which contain ore from the rocks that hold no economic quantities of gold.
Once the rocks are separated, the miners will blast the rocks to break them down which will make them easier to move. The rocks will be removed from the ground to a designated ore area, and the ones that contain gold will be moved to stockpiles. The stockpiles that contain gold (ore) will be sent off and processed to extract the gold.
The unused rocks are typically moved to a temporary waste site that is eventually used to rehabilitate local areas that have been mined.
On top of all of the previously mentioned tests, procedures, and explorations, before underground mining occurs, there is more extensive investigations that need to take place to determine the safety and economic feasibility of the potential mine. Included in this investigation is scoping study, a pre-feasibility, and feasibility study.
Once the investigation is completed and the mining region is identified, a portal entry is needed along with surface infrastructure. After this is finished, there is a long tunnel that is built along with a return airway, and lateral branching access drives. Once the main tunnel is finished, the lateral ore development that was described previously can begin.
In open-pit mining, the drilling results that were collected from the infill drilling are used to create a resource model that specifies the parts of the mineral resource that will be extracted from. After this plan is complete, miners will start to drill. Using heavy machinery, benches which are wide steps that separate rocks which contain ore from the rocks that hold no economic quantities of gold.
Once the rocks are separated, the miners will blast the rocks to break them down which will make them easier to move. The rocks will be removed from the ground to a designated ore area, and the ones that contain gold will be moved to stockpiles. The stockpiles that contain gold (ore) will be sent off and processed to extract the gold.
The unused rocks are typically moved to a temporary waste site that is eventually used to rehabilitate local areas that have been mined.
On top of all of the previously mentioned tests, procedures, and explorations, before underground mining occurs, there is more extensive investigations that need to take place to determine the safety and economic feasibility of the potential mine. Included in this investigation is scoping study, a pre-feasibility, and feasibility study.
Once the investigation is completed and the mining region is identified, a portal entry is needed along with surface infrastructure. After this is finished, there is a long tunnel that is built along with a return airway, and lateral branching access drives. Once the main tunnel is finished, the lateral ore development that was described previously can begin.
The process of decommissioning gold mines can take anywhere between 1 to 5 years. Miner’s work will focus on decommissioning and dismantling the mine once either the ore has been exhausted, or what remains of the deposit has become unprofitable. Once the mine has been closed, the focus then turns to rehabilitating the land that was used for the mine.
This process can be long and complex. Even after the mine has been closed, the mining company is required to monitor the site that was used, typically for five to ten years after the mine has been closed.
During this time, the land that was once used for the mine will be cleansed and rehabilitated. The gold mining companies that are monitoring the land ensure it is returned by following a long-term environmentally friendly plan.
In open-pit mining, the drilling results that were collected from the infill drilling are used to create a resource model that specifies the parts of the mineral resource that will be extracted from. After this plan is complete, miners will start to drill. Using heavy machinery, benches which are wide steps that separate rocks which contain ore from the rocks that hold no economic quantities of gold.
Once the rocks are separated, the miners will blast the rocks to break them down which will make them easier to move. The rocks will be removed from the ground to a designated ore area, and the ones that contain gold will be moved to stockpiles. The stockpiles that contain gold (ore) will be sent off and processed to extract the gold.
The unused rocks are typically moved to a temporary waste site that is eventually used to rehabilitate local areas that have been mined.
On top of all of the previously mentioned tests, procedures, and explorations, before underground mining occurs, there is more extensive investigations that need to take place to determine the safety and economic feasibility of the potential mine. Included in this investigation is scoping study, a pre-feasibility, and feasibility study.
Once the investigation is completed and the mining region is identified, a portal entry is needed along with surface infrastructure. After this is finished, there is a long tunnel that is built along with a return airway, and lateral branching access drives. Once the main tunnel is finished, the lateral ore development that was described previously can begin.
Here at Matador, we have a high standard for the gold we sell. Included in that standard is highly regulated gold mining processes that are environmentally friendly. This is why Matador only sells Canadian gold.
In 2004, the Towards Sustainable Mining (TSM) initiative was launched by the Mining Association of Canada (MAC). The TSM is a sustainability standard that is recognized world wide. TCS and the Canadian government have adopted the initiative as a standard for responsible business conduct.
The Mining Association of Canada (MAC) has set the Towards Sustainable Mining initiative as a commitment for responsible mining. Their objective is to set a standard for mining companies to meet the needs we have as a society for metals, minerals, and energy products in an environmentally responsible way.
TSM is a set of indicators and tools that help to ensure that mining risks are taken seriously, and managed accordingly at all members’ facilities. Following the principles of the TSM will help members to demonstrate leadership by:
TSM core responsibilities are:
All MAC members are required to participate in this program. Assessments take place at facility levels, or where the mining takes place. TSM is the only program in the world to do this.
In MAC's TSM Progress Reports, members report their performance against 23 indicators outlined in TSM Guiding Principles. The results of each facility are publicly available and externally verified every three years.
As part of TSM, a national Community of Interest Advisory Panel provides ongoing consultation. Multi Stakeholder groups foster dialogue, improve industry performance, and shape programs for continual advancement among MAC members and communities of interest.
With the knowledge of how long and complex the gold mining process is, you may be asking yourself if the gold mining process is worth it. At Matador, we believe that the process of mining gold is worth it, when done following TSM guidelines. By buying and selling Canadian gold we are contributing to environmentally friendly practices that not only provide local jobs but support the community while doing so.
