Tag Archives: Lamaque

Dingo predictive maintenance solution cuts equipment downtime at Eldorado Lamaque

Dingo Software is helping Eldorado Gold’s Lamaque mine in Quebec, Canada, optimise maintenance and reliability practices through leveraging the company’s predictive and condition-based maintenance solutions.

The Lamaque mine faced the dual challenge of controlling capital costs and lowering all-in sustaining costs while also navigating the complexities of the global supply chain. With a current life of mine of 10 years, the mine sought to address some of these persistent challenges.

Lamaque decided to first focus on limited access to personnel with reliability skillsets, underutilisation of some of the existing digital platforms and its exposure to the global parts shortage. The team sought solutions to help control and reduce costs, extend the lifespan of major asset components and build world-class reliability expertise, Dingo says.

The site team, in collaboration with Dingo, identified opportunities to enhance equipment maintenance and reliability key performance indicators (KPIs). The chosen strategy aimed to reduce unplanned breakdowns, extend component life cycles, increase equipment availability and mitigate the impact of the global parts shortage.

Martin Pichette, Mine Operations and Maintenance Director at Lamaque Mine, said: “Partnering with Dingo allows us to leverage remotely-located condition intelligence experts from the get-go for a fraction of the normal cost to the company. This allows our few reliability experts to focus on the top issues and make important decisions to ensure our fleet availability is where it needs to be instead of having them analysing data and looking for the issues.”

Dingo also helped Lamaque acquire new sources of business intelligence with a fully documented and centralised asset health database plus integration with the ERP/CMMS, ensuring a complete maintenance and reliability context is available to support all maintenance decisions, it said.

Phase 1 of the Dingo solution involved consolidating oil sample data into a single platform for the first time at the mine. Within a short timeframe after the go-live, critical issues were identified and shared with the site team.

In the first week after go-live, the Dingo Condition Intelligence team observed a 2% fuel dilution, decreased viscosity, increased wear metal values and combustion by-products on a Caterpillar AD30 underground truck with a C15 engine with only 1,391 operating hours.

In response, the Dingo team assigned a ‘Priority 1’ action, providing work-stop level recommendations and provided site with a troubleshooting guide from their library, including recommendations to check the fuel injectors.

Not long after, the local OEM (Toromont) supporting Lamaque identified five defective fuel injectors that required urgent replacement. However, due to the ongoing global parts shortage, the mine was left with no alternative but to perform an engine oil drain on a weekly basis until the necessary parts could be procured. Once available, the injectors were replaced under warranty. This preemptive action not only prevented potential engine failure on the Cat AD30 but also restored up to 90% of the engine’s at-risk lifespan, according to Dingo.

While this proactive intervention circumvented much larger production losses had the engine been lost, it also highlights the significant risk unplanned breakdowns can have on Mean Time in Repair and associated production losses.

Dingo said: “The joint effort between the Lamaque personnel, CAT Toromont and Dingo Condition Intelligence specialists not only averted a catastrophic breakdown but also showcased the effectiveness and rapid results achievable through Dingo’s predictive maintenance solutions. The successful identification and repair of the AD30 injectors resulted in significant cost savings for everyone. In a nutshell, such a breakdown, if it had not been prevented by the team, would have generated production losses of about $65,000 per day due to equipment downtime and significant corrective maintenance cost to the OEM under warranty.

“Beyond financial value capture, this case also aligns with Eldorado Gold’s vision of ‘breaking new ground’ by implementing innovative solutions and enhancing maintenance processes, thereby ensuring the continuous growth of their high-quality business.”

After the AD30 engine save, the Lamaque maintenance team have continued to leverage Dingo to save equipment. For example: three leaking fuel injectors were found on a 45 t haul truck and a transmission was saved on a 15 t LHD; two key prime movers that would have impeded the operation from monthly production targets. Overall, working together, Dingo and Lamaque have now secured three significant equipment ‘saves’ within the first four-month period, Dingo says.

Building on these early successes, Lamaque and Dingo plan to continue to extend the project to the entire fleet, according to Dingo. Next steps will include interfacing with the mine CMMS and leveraging Dingo’s global benchmark tool to help select best practices from similar mines worldwide and to help the mine evolve towards increasingly condition-based maintenance decision making.

Dingo concluded: “This success story exemplifies how proactive maintenance strategies, coupled with innovative partnerships, can not only address immediate challenges but also pave the way for a more efficient future in the mining industry.”

Eldorado’s Lamaque mine receives first Sandvik TH550B battery-electric truck

Eldorado Gold Quebec, which operates the Lamaque underground mine in Val-d’Or, says it has become the first mining company in Quebec to integrate a Sandvik TH550B battery-electric truck into its fleet.

This truck, with a maximum capacity of 50 t, will play a key role in improving production efficiency, protecting the health and safety of workers, but above all in mitigating our gas emissions, the mining company said.

Back in March, IM reported that Eldorado was expecting to receive its first battery-electric truck in June for use at Lamaque, with the operator confirming a second truck was scheduled to arrive by the end of the year.

The introduction of these electric trucks is part of the strategy of progressive electrification of the equipment fleet at Lamaque, and also supports efforts to electrify transportation in the Sigma-Lamaque underground ramp, the company said. As the first mining company in Canada to adopt this technology, Eldorado Gold Québec has worked closely with Sandvik to develop these trucks.

Sylvain Lehoux, Vice-President, Canada, said: “We are pleased to be able to begin the electrification of our underground operations thanks to the arrival of this electric truck, which will bring us several benefits, particularly in terms of mitigating our GHG emissions, but also for improving certain aspects of the health and safety of our employees. Over the next few weeks, our employees will be trained and this equipment will be in the testing phase in our operations. We are all looking forward to seeing this technology in action and actively pursuing our efforts to decarbonise our operations.”

Although the Lamaque mine is already recognised as one of the lowest GHG-emitting gold mines in the world, thanks in large part to access to hydroelectricity and the implementation of energy efficiency projects, it is expected that the use of these electric trucks will, once fully functional, reduce GHG emissions estimated at 1,700 tCO2 per year, the company says. This reduction is explained by the absence of diesel consumption and the 100% use of renewable electricity supplied by Hydro-Québec.

Eldorado testing LTE-backed Newtrax ventilation on demand solution at Olympias

Eldorado Gold has confirmed it is testing Newtrax’s environmental monitoring platform and ventilation on demand (VoD) solution at the Olympias mine in Greece.

Mine ventilation represents the single largest electrical load at the Olympias mine and, in response to the EU energy crisis and Eldorado’s own Energy and Carbon Management System, the company has been aggressively advancing VoD implementation at the Greek operation.

The benefits associated with VoD include:

  • Targeted air circulation and improved air quality as the working environment is upgraded as fresh air is distributed through the mine in a manner that ensures workers’ health and safety;
  • Right-sizing fans to provide the required volumetric flow rates (from a static to a dynamic and intelligent air supply leading to a reduction of the total required airflow within a mine);
  • Improving energy efficiency and power consumption – by reducing the total airflow, energy can be saved in disproportionately high amounts due to the cubic relationship between volume flow and fan power; and
  • Enabling the production and development activities at the lower levels of the mine.

To obtain the immediate benefits of VoD, the Olympias mine operations team implemented a manual solution during 2022, where the team adjusts ventilation fan operations each day based on the daily mine plan. As part of this, variable speed drives were applied to many of the fans to allow air flow adjustments to meet operational needs with minimum electricity consumption. This process is being carried out via the control room on surface, with a SCADA system used to disconnect fans that are not planned to be used during the day.

This transition saw ventilation fan consumption decrease from about 620 kWh/mth of electricity consumption per kW of installed fan capacity to about 377 kWh/mth of electricity consumption per kW of fan capacity, representing a 40% decrease in energy consumption, according to Simon Hille, SVP, Technical Services and Operations. At the end of 2022, the mine had 3.1 MW of installed ventilation capacity.

“This 40% reduction represents about 9,051 MWh/y of electricity savings and about 3,800 t/y of GHG emission reductions (utilising the updated emissions factor of 0.42 t CO2e/MWh),” he told IM.

While manual VoD has been very effective, automated VoD will further decrease energy consumption and eliminate the many worker hours required to implement VoD on a daily basis, according to Hille.

This is where the company brought in Newtrax, part of Sandvik Mining and Rock Solutions, to implement an automated VoD system.

The Olympias mine will be the first Newtrax installation utilising LTE as the communications medium versus low frequency radio (leaky feeder) utilised previously, according to Eldorado. LTE was installed in August 2022 with the help of Cosmote.

The automated platform will also leverage data from the existing Micromine fleet management system and RFID-based employee location tags provided by Newtrax. Ventilation will then be provided by surface fans with higher ventilation capacities.

Olympias already uses Accutron Technology to monitor air flow velocity and Trolex technology to monitor mine air quality, according to Hille.

In addition to the VoD benefits, the Newtrax technology will improve mine safety (mine evacuation and rescue) as well as improve productivity by allowing mine supervision to have a better understanding of resource locations for improved decision making, the company says.

“Technology and connectivity are the key parameters for VoD to operate effectively,” Hille said. “Automated employee and equipment geo-location is necessary as it helps adjust ventilation delivery to different areas by effectively shutting down entire areas and thus reducing the overall ventilation demands. This requires smooth connectivity with the LTE across the mine site.”

Last month, Newtrax installed five Bluetooth low energy (BLE) devices on select mobile machinery to test system connectivity. Once troubleshooting is complete and communication is established between the underground fans and Newtrax BLE devices, full-sized implementation will be considered with equipment procurement, installation and commissioning to be done by end of Q1 (March quarter) 2024.

On top of this, Eldorado Gold is evaluating non-diesel powered equipment for all new equipment purchases and, in some cases, as an alternative to equipment rebuilds.

“The mine ventilation benefits of equipment electrification are included in the evaluation of that equipment,” Hille said.

Eldorado Gold to electrify haulage at Lamaque with Sandvik TH550B BEVs

Eldorado Gold is looking to take its next mobile equipment electrification step, with the company set to receive its first battery-electric truck in June for use at the Lamaque underground mine in Quebec, Canada.

The Vancouver-headquartered company has already trialled a battery-electric Normet SmartDrive concrete transportation vehicle at its Efemçukuru gold mine, in Türkiye, as part of a wider group remit to mitigate greenhouse gas emissions (GHG) by 30%, from 2020 levels, by 2030 on a ‘business as usual’ basis; equal to approximately 65,000 t of carbon dioxide equivalent.

Now the company is moving from this electric utility vehicle trial to acquiring two battery-electric trucks for use at its flagship Canadian mine.

In its recent 2023 guidance, Eldorado said it expected to spend $37-42 million on growth capital at Lamaque this year, including non-sustaining exploration expenditures for resource conversion and resource expansion drilling at the Ormaque and Parallel deposits, tailings management and electric underground trucks.

A spokesperson for the company confirmed the electric underground truck investment relates to the acquisition of two Sandvik TH550B battery-electric trucks.

These 50-t payload battery-powered trucks combine Sandvik’s 50 years of experience in developing loaders and trucks with Artisan™’s innovative electric drivelines and battery packs. The electric drivetrain delivers 560 kW of power and 6,000 Nm of total torque output, allowing for higher ramp speeds for shorter cycle times and an efficient ore moving process, according to the OEM. All of this comes with zero emissions.

These vehicles also come with fast and easy battery AutoSwap and AutoConnect functions that Sandvik has refined for battery swap processes that take only a few minutes.

The Eldorado spokesperson said: “We have purchased two units; the delivery for the first unit is in June and the second one in November 2023. The Lamaque Mine continues to perform as one of the lowest GHG-emitting gold mines in the world because of access to low-emission hydroelectricity in Québec and other site-based energy efficiency projects. Electrification of these underground vehicles has the benefit of reducing diesel usage on our site and, in addition, we can also be certain that we’re not passing on our direct Scope 1 emissions to Scope 2.”

The company’s sustainable focus at Lamaque goes beyond the acquisition of these two Sandvik vehicles.

Lamaque is expected to produce some 170,000-180,000 oz of gold at C1 cash operating costs of $670-$770/oz sold in 2023, the company says

Eldorado has recently eliminated 26 km of surface haulage and rehandling on public roads at Lamaque, reducing GHG emissions. It has also increased the operation’s energy efficiency, cut its ambient noise and reduced surface dust.

Lamaque is expected to produce some 170,000-180,000 oz of gold at C1 cash operating costs of $670-$770/oz sold in 2023, the company says.

Eldorado Gold’s Efemçukuru mine to test Normet battery-electric vehicle

Eldorado Gold’s underground mining battery-electric vehicle journey is set to begin next month, with the company imminently awaiting the arrival of a Normet SmartDrive concrete transportation vehicle at its Efemçukuru gold mine.

The company has reviewed the potential for the use of battery-electric vehicles at its Lamaque underground gold mine in Canada in the past, but this is the first official trial of zero emission mobile equipment the company will conduct. This aligns with the company’s recently announced target of mitigating GHG emissions by 30%, from 2020 levels, by 2030 on a ‘business as usual’ basis; equal to approximately 65,000 t of carbon dioxide equivalent. To achieve this target Eldorado is focused on pursuing decarbonisation through four key pathways including: measuring and monitoring; operational efficiencies and continuous improvement; technologies, processes and energy generation; and energy procurement and strategy.

Set to arrive at the mine, in Izmir Province, western Turkey, at the end of the month, the Normet Utimec MF 500 SD transmixer will be tested in a combination of ramp and flat drifts over the latter part of April.

Efemçukuru, a high-grade epithermal deposit, will provide a good test for the machine. While reasonably shallow in terms of depth, the narrow-vein mine has four declines (SOS, MOS, NOS and KBNW), each covering approximately 400 m of strike extent. These declines have 15% inclination, while flat drifts with inclinations ranging from 0-5% will provide a good platform for overall speed.

A spokesperson for the gold miner told IM that the machine, which has already been purchased, will be tested against assumptions provided by the manufacturer for rates of charging and discharging. The machine is then intended to be used in an operational capacity.

“Battery charging rates will be tested for charging from the existing grid, from a quick charging station and from downhill braking,” the team leading the project said. “Moreover, the battery usage rate will be tested for driving in uphill (15%) and flat (0-5%) galleries, against assumptions.”

Testing will also involve the comparison of performance of both battery-electric and diesel machines in uphill tramming, with the company expecting the battery-electric transmixer to outperform the diesel-equivalent in these head-to-head tests due to the machine’s high torque.

The Utimec MF 500 Transmixer SD (pictured here at Normet’s outdoor test track at its Iisalmi factory) has a 4.4 cu.m concrete carrying capacity, and comes with a combined power rating of 200 kW alongside a maximum tramming speed of 20 km/h.

Normet says the machine is designed for fast and safe concrete transportation in underground mines and tunnels where the tramming height is at least 2.4 m. The concrete drum rotation is electrically controlled and the speed ranges between 0-13 rpm.

Tested at both the Normet factory and the First Quantum polymetallic Pyhäsalmi mine in Finland, the MF Transmixer 500 SD has displayed a payback period of 2-3 years based on the machine completing a two-hour cycle that involves a 3 km journey on a 1:7 decline running at 15 km/h with the bowl rotating, one hour of unloading with the bowl rotating at 15 kW, and an uphill unloaded haul of 3 km at 10 km/h with no bowl rotation.

Eldorado said the MF Transmixer 500 SD will be at the mine site shortly, with training coordinated by Normet taking place in April ahead of the trial.

Eldorado Gold looks to ARES PRISM project controls software to optimise Lamaque

Eldorado Gold’s Lamaque mine in Quebec, Canada, is set to implement ARES PRISM project controls software to help manage the underground operation.

The mine was seeking a project management tool to provide earned value management, process optimisation and accurate reporting, according to ARES PRISM.

Mehdi Bouanani, Projects and Construction Manager at Eldorado Gold Québec, said: “At Eldorado Gold Québec, we are always looking for innovations and tools to optimise our efficiency. The software ARES PRISM allows us to monitor our costs relating to our various projects closely. In addition, reports that show progress status and execution performance are useful. In general, the software meets our expectations very well.”

Eldorado Gold Québec selected Progesys, a project management firm located in Quebec, Canada, to implement ARES PRISM’s cost management software module, PRISM Cost. Progesys provided training for PRISM Cost users at Eldorado Gold and implemented the software on diverse pilot projects.

Kevin McAleese, Cost Control Specialist at Progesys, said: “By using ARES PRISM, the goal was to streamline the project control processes by centralising all data in one place, standardising and accelerating reporting, and improving the reliability and quality of the data. We implemented it conjointly with Eldorado Gold to make sure that the structure and the systems reflected their specific needs.”

With ARES PRISM, the mining organisation will be able to effectively manage the Lamaque Mine project’s budgeting, resource planning, change management, time-phasing, progress, and performance measurement, earned value management, and forecasting all in a single, central location, according to the software vendor.

Geoffrey Stubson, Chief Financial Officer of ARES Project Management LLC, said: “Eldorado Gold Québec clearly embodies its values of responsibility, integrity and accountability. ARES PRISM will help Eldorado further uphold these values by effectively managing project cost, optimising processes and providing accurate reporting.”

Lamaque began commercial production in March 2019 and is expected to mine and process more than 750,000 t of ore at an average gold grade of 6.6 g/t Au.

Eldorado Gold green lights underground decline at Lamaque mine

Eldorado Gold is commencing construction of a 3 km decline at its Lamaque underground gold mine in Quebec, Canada.

The fully permitted decline will go from the Sigma mill to the 405 m level of the Triangle mine, where resources and reserves reside.

Eldorado said the $24 million investment was expected to provide multiple near-term and long-term benefits as the company continues to grow production at Lamaque. Earlier this year, it was granted Certificate of Authorization from the Quebec Ministry of Environment to expand underground production from Triangle from 1,800 t/d to 2,650 t/d.

“Detailed engineering and site preparations for the decline will commence this month and surface construction on the portal will begin in Q3 (September quarter) 2020,” the company said.

The decline is expected to be completed by the first half of 2021, but Eldorado is also evaluating the possible addition of an underground crushing and conveying system as well as a potential mill expansion, it said.

Late last year, then-COO, Paul Skayman, told IM the company was considering the use of battery-electric vehicles, or vertical haulage with conveyors, as part of its mine expansion plans.

And, since then, the company has started trialling the SAMS™, or the shallow angle mining system, from Minrail, a system that could allow the company to further enhance Lamaque’s economics, improve safety and develop technical expertise that could potentially be leveraged at some of Eldorado’s other mines.

While an update outlining the path forward at Lamaque is expected in the December quarter of this year, the company said the benefits of the construction of this decline include:

  • Eliminating surface re-handling and haulage (around 26 km round trip) of the ore from the Triangle mine to the Sigma mill, reducing carbon emissions, costs, and removing haulage traffic from the public road network;
  • Reducing the energy requirements for mine ventilation;
  • Supplying a means of secondary egress and ventilation to the Triangle mine, increasing safety underground;
  • Providing underground access for lower cost exploration in the prospective area between the Triangle mine and the historic Sigma and Lamaque mines – including further drilling of the Plug 4 and Parallel deposit and the Ormaque zone; and
  • Facilitating increased future production from the Triangle mine (contingent on continued reserve expansion) and allowing for mining of the Parallel deposit.

George Burns, Eldorado President and CEO, said: “We are pleased to begin construction of the decline at Lamaque this summer. This is a project that we have been advancing for nearly a year and is another step towards further production growth and continued value creation at Lamaque.”

Eldorado Gold lays the foundations for Lamaque mine tech testbed

When Eldorado Gold acquired the Lamaque project, near Val-d’Or, Quebec, from Integra Resources back in 2017, many observers would have assumed the larger company would just follow the blueprint set out by the junior miner.

That plan – outlined in a February 2017 preliminary economic assessment (PEA) – envisaged the building of a high-grade underground operation able to produce an average of 123,000 oz/y of gold at all-in sustaining costs (AISC) of $634/oz over 10 years. Underground mining would be carried out by long hole and room-and-pillar mining methods, with the former representing 90% of the tonnage and room-and-pillar 10%.

With some existing infrastructure already in place from the historic Lamaque mine (now mined out) and gold prices close to double that of the estimated AISC at the time of acquisition, Eldorado stood to make a healthy profit by following this route.

The company had bigger ambitions for the mine.

In 2019, Eldorado declared commercial production at Lamaque just over 18 months after the acquisition. The company recently put out five-year guidance for the mine showing production increasing to 150,000 oz/y, which would be facilitated by an increase in underground development.

Further plans include technical work to find the optimal production rate for the Triangle deposit – the underground deposit that feeds the Sigma mill. Together, these two assets form the new Lamaque mine.

In late March, at the same time as declaring a suspension of operations at Lamaque in line with provincial regulations related to curtailing the spread of the COVID-19 virus, the company announced it had been granted approval to expand mine throughput to 2,650 t/d, from 1,800 t/d.

As these targets have been hit, the company has looked to apply new technology and techniques to the Lamaque orebody to improve performance.

Late last year, then-COO, Paul Skayman, told IM the company was considering the use of battery-electric vehicles, or vertical haulage with conveyors, as part of its mine expansion plans.

This year, the company has followed that up by agreeing to trial a revolutionary mining technique that could allow it to further enhance Lamaque’s economics, improve safety and develop technical expertise that could potentially be leveraged at some of Eldorado’s other mines.

Suddenly, Lamaque is being thought of not just as a profitable run-of-the-mill gold mine, but a place where industry-wide technical and technological advancements can be made.

SAMS

SAMS™, or the shallow angle mining system, has been in existence since 2012 when Quebec-based Minrail consolidated several patents associated with previous iterations of a mechanised mining technique developed for narrow, shallow dipping deposits oriented at 10-45°.

The rail-based system starts with the excavation of a niche and draise (a drift/raise hybrid) through conventional methods. After this, workers install double overhead rail that tracks the angle of mineralisation throughout the excavated area.

Various units to carry out mechanised mining of the mineralisation – a hydraulic drill for development, longhole drill for production, rock breaker, a scraper/excavator, power unit, air/water spool, etc – hang off this rail, which is securely bolted in place. A work platform where operators can carry out drilling, explosives loading and mucking from a safe distance under supported ground is also attached to the overhead rail.

The typical mining cycle sees the orebody drilled, explosives placed, and blasted material transported to the ore access drift using the excavator module in combination with a slusher. From here, loading and hauling takes place.

According to Minrail, the system offers the potential to significantly reduce dilution, operating costs and mine capital development costs. Marc R Beauvais, President and CEO of Minrail, explains: “What makes SAMS stand out so much is it allows companies to significantly reduce the need to excavate tightly spaced access drifts. Other mining methods require reduced vertical separation between each level, thus increasing the number of levels within the mine infrastructure.”

Using wider spaced levels reduces the amount of time required to extract the ore from within the orebody as less time is spent excavating waste rock material, according to Beauvais.

“In certain cases, we have seen up to a 40% reduction in lateral development, translating into millions of dollars in savings,” he told IM. This also translates to the ability to access ore zones much quicker than conventional methods.

“On top of that, the mining method, in itself, is highly selective, therefore, reducing again the rockwork required to extract the ore. What people need to understand is in a SAMS mine layout, SAMS aims at the ‘ounces contained’ within the orebody, not the raw tonnage,” Beauvais said.

It is these traits, on top of the significant safety benefits of applying the system, that attracted Eldorado Gold’s Lamaque team to the technology, according to COO and Executive VP, Joe Dick.

“We may not have mined these narrow, shallow-dipping veins conventionally, at least directly, without such technology,” he told IM.

Dick says he is excited about what the technology could provide both the company and the Lamaque asset.

“It brings a way to advance the mining economics by extracting resources that the current mining method (long hole mining) is not suited to.

“Testing will also potentially give us an idea of if the technology will be suitable in other jurisdictions with similar orebodies – from a geometric and orientation perspective.

“We will also be able to build some technical expertise around the technology, which is always good to have.”

By far the biggest benefit SAMS could bring the Lamaque team is improved safety, according to Dick.

“One of the things SAMS would allow us to do is advance areas under supported ground that, in the past, we had to either mine around or ‘bar loose’ as we were advancing. First and foremost, this is the main appeal.”

Sylvain Lehoux, General Manager at Lamaque, adds to this: “It’s also worth pointing out that we will be able to drive this machine remotely.”

Lehoux said the company has already started carrying out remote mucking with LHDs between shifts that has been facilitated through SAMS testing.

Beauvais said: “In its third generation, SAMS equipment is designed to undertake most of the rockwork activities without the presence of an operator in the ‘hot zone’. Live video capture from the four onboard cameras can be transmitted to the surface along with all the data collected (mechanical, electrical, hydraulics, etc) from the various onboard probes and sensors.

“Three-dimensional, high-density scanning of the ‘in progress’ rockwork is also available,” he said.

The third generation

Eldorado and Lamaque are coming to the SAMS technology in the third generation Beauvais speaks of. In the eight years since Minrail was founded, SAMS has evolved.

The first-generation SAMS machine originated from the work of a mining company consortium in 2003. Beauvais eventually brought the patents into the Minrail fold when it was founded in 2012.

The aim of this original iteration was the same – to mine shallow dipping deposits – but the components to carry this out hung off a monorail that proved too inflexible to be practical, according to Beauvais. The second-generation machine, which got an outing at the Beaufor mine in Quebec, was the first to include the double overhead rail design, an innovation that improved flexibility and enabled Minrail to mine a 1,000 t sample at the operation prior to owner Monarques Gold placing the operation on care and maintenance.

The adaptations to this second-generation machine – designed to enable remote operations of all tasks – have provided Eldorado with the confidence to test out the latest generation at Lamaque.

Further down the line, Ascot Resources has included the technology in the “value enhancement opportunities” of its Premier and Red Mountain gold project feasibility study. This could see the technology branch out of Quebec into British Columbia.

Such a response is hardly surprising considering it is the type of 100% electrically powered, zero emission underground mining method operators have been calling out for.

Add to this the prospect of adding an autonomous, remotely controlled ore transportation system to the SAMS mix – Minrail’s Suspended Muck Handling System, or SMHS, which Beauvais says will be tested in prototype form later this year – and the future prospects are great.

But, for the time being, the industry will keep watching how the technology is being applied at Lamaque.

Lehoux, who says there are several veins at Lamaque that fit the 10-45° niche Minrail has set out to mine mechanically, says Eldorado, the Quebec Government (which granted Minrail C$150,000 ($106,718) to help develop a third-generation prototype SAMS machine) and Minrail are working together to create a machine that can be showcased globally.

“This is the first time I have seen mechanisation of these shallow veins – it was always jackleg and conventional stopers,” he said. “The government stepped in and provided funding because it is a new machine, developed in Abitibi, that is of global significance.”

Lehoux and Dick say Eldorado is fully committed to making a success of the technology and has put experienced miners on the system to enable the machine to be finetuned as the project progresses.

The initial feedback from Lehoux and his team is positive.

“We have run the latest version of the machine on site, drilling a couple of rounds and mucking out from there,” he said. “As you know, we restarted last week (April 15) after the restrictions from the government were lifted. So far, it is going really well with the Lamaque team and Minrail team on site.”

There is also talk internally at Eldorado about how SAMS could fare at its underground mines in Greece.

With at least one or two shallow dipping veins at Lamaque set aside for testing out SAMS, Dick and Lehoux are hopeful that, by the end of the summer, the company will be in the position to evaluate the technology’s commercial potential.

“There is drilling and mucking ahead, but we also want to test the ground control,” Lehoux said. “We might have to modify the machine to accelerate the cycle, and we also need to evaluate how long it takes to dismantle and setup a machine to go from one vein to the next.”

Beauvais, while acknowledging the dedication and collaborative nature of the team at Lamaque, thinks the machine will pass all the tests set for it: “The bottom line is: SAMS allows you to not only save money as you mine out the resource, but it also enables you to reduce your overall mine footprint.

“It requires less rockwork, comes with a significant reduction in ventilation and heating requirements, provides quicker access to revenues, offers a far safer and ‘cleaner’ working environment with zero emissions, and is automation-ready technology.

“That’s smart mining.”

Lehoux says if the technology works, Lamaque could be used as an example for the whole mining world, “where other sites will come down underground to see the cycle and evaluate how it works”.

Lamaque will then become more than just a mine. It will become a global testbed for a new revolutionary technology.

Ascot Resources considers SAMS mining method after releasing positive feasibility study

The feasibility study on Ascot Resources Ltd’s Premier and Red Mountain gold projects in the Golden Triangle of British Columbia, Canada, has shown off some compelling economics, as well as indicate potential future upside using an emerging mining method called the shallow angle mining system (SAMS).

SAMS, similar to Alimak mining, according to Ascot, is a new technology system focused on the mechanisation of ore extraction developed by Quebec-based Minrail. The system cropped up in the “value enhancement opportunities” section of Ascot’s study.

Ahead of that, the study, led by Sacre-Davey Engineering Inc, showed off some encouraging results.

Using a base case of $1,400/oz gold, $17/oz silver and a C$ to US$ exchange rate of 0.76, Premier and Red Mountain could provide a post-tax net present value (5% discount) of C$341 million ($242 million) based on initial capital expenditure of C$147 million. Life of mine (eight years) payable production came out as 1.1 Moz of gold and 3 Moz of silver with peak annual production of 180,000 oz of gold-equivalent.

The study’s mine plan generally used a combination of three mining methods: longhole (64%), inclined undercut longhole (14%) and room & pillar (12%). Minor amounts of cut and fill (2%) and development ore (8%) were also included to extract the mineral reserves of 6.2 Mt at 5.9 g/t Au and 19.7 g/t Ag.

The company assumed a “lease to own cost” for the mobile mining equipment, which primarily consisted of two scissor lifts, three jumbo drills, five haul trucks, five LHDs, 15 ventilation fans, and several other smaller supporting pieces of equipment.

Benefitting from an existing processing facility at the Premier gold project, the study envisaged using a SAG and ball milling flowsheet followed by the refurbished carbon-in-leach circuit. Over the mine life, the plant will operate 365 d/y to produce gold doré with an overall plant availability of 92% and an average throughput of 2,500 t/d, according to Ascot. In the latter part of year three, ore from the Red Mountain project will be introduced to the existing mill facility, it said.

While the economics and technical elements of the feasibility study stacked up, the company also laid out some potential “value enhancement opportunities” beyond the scope of the study.

This is where SAMS and Minrail came in.

Ascot said there was potential for reducing mining dilution and development by undertaking further studies and testing of SAMS.

“SAMS is similar to Alimak mining but at a low angle, with a central drive and long holes drilling laterally, offering the potential to significantly reduce dilution, operating costs and mine capital development costs,” Ascot said.

According to the company, the method is currently being tested by Minrail at Eldorado Gold’s Lamaque mine in Val D’or, Quebec.

A press release from Minrail posted around a year ago said Lamaque had ordered a “group of mining equipment” to undertake underground test work using SAMS at the operation.

“After an extensive review of all currently available underground mining methods and available technologies that are suited to narrow, shallow dipping deposits, Eldorado has perceived the great potential of Minrail’s technology to complement its mine development plans using SAMS, which incorporates critical mining innovations focused on safety, productivity and flexibility,” Minrail said in the statement.

The resource model at Lamaque encompasses several shallow dipping lenses that are believed to be amenable to using SAMS, Minrail added.

This test work was due to take place last year, according to the release.

Yet, in January, the Quebec government announced it would provide a C$150,000 grant to Minrail to complete a prototype SAMS system that would be installed at Lamaque.

Quebec miners shut down operations following COVID-19 government order

The latest provincial government-mandated restrictions to address the COVID-19 situation have seen miners down tools at operations in Quebec, Canada.

Announced on March 23, the order was for the shutdown of all non-essential businesses and services for a period of three weeks, starting on midnight on March 24.

While mining was listed as one of the priority services, those in the mining sector have been instructed to minimise activities.

Yamana Gold, which along with Agnico Gold Mines’ jointly owns the Canadian Malartic mine (pictured), said it would ramp down operations at the mine following discussions with representatives of the Government of Quebec to “obtain additional clarity in regard to the order”.

The operation, Canada’s largest gold mine, will be on care and maintenance and minimal work will be taking place until the date specified in the order (April 13), it said.

Yamana said it was demobilising employees and contractors in a safe and orderly manner, leaving only a small number of employees on site to maintain property and equipment and oversee all environmental responsibilities and obligations.

“A return to full capacity at Canadian Malartic is expected to occur in an expedited manner as soon as the temporary restriction is lifted,” it said.

Yamana’s partner, Agnico Eagle Mines, also announced its LaRonde Complex and Goldex Mine, in the Abitibi region of Quebec, would be ramped down in an orderly fashion while ensuring the safety of employees and the sustainability of the infrastructure.

“Each of these operations are to be placed on care and maintenance until April 13, 2020, and, as instructed, minimal work will take place during that time,” the company said.

With its Meliadine and Meadowbank mining operations in Nunavut being serviced out of Quebec, it said it will also slow activities there.

Eldorado Gold, meanwhile, has temporarily minimised operations at its Lamaque underground mine until April 13.

As of today, it will ramp down operational activity and maintain only essential personnel on site responsible for maintaining appropriate health, safety, security and environmental systems, it said.

“The company remains committed to resuming operations in a timely manner once the suspension is lifted,” Eldorado Gold added.

The news came on the same day it announced the receipt of a Certificate of Authorization from the Quebec Ministry of Environment to allow for the expansion of underground production from the Triangle deposit at Lamaque from 1,800 t/d to 2,650 t/d, once operations resume. This expansion could see annual average gold production rise to 170,000 oz, from close to 130,000 oz.

Hecla Mining has also slowed operations at its Casa Beradi gold mine in the province, with the company saying it will have limited operations in place to protect the facilities and environment while the suspension is ongoing.

Rio Tinto, which operates aluminium operations in the province, said it was working with the government to comply with its directive.

“Rio Tinto understands that the Quebec government has designated industrial complexes including the aluminium sector and the mining industry as essential industries but instructed that they must reduce their business activity to the minimum,” it said.

Over the border in Ontario, there has been a more mixed response to the COVID-19 situation, led by the provincial government taking a different tack to politicians in Quebec.

Some mines, such as Kirkland Lake Gold’s Detour Lake operation and Wesdome Gold Mines‘ Eagle River complex, have reduced the amount of workers on site, whereas others like Newmont (at Musselwhite) have put operations into care and maintenance mode.

Ontario’s government has issued a similar notice to its neighbour about non-essential businesses, but its definition is different.

Businesses that ensure global continuity of supply of mining materials and products, including metals such as copper, nickel and gold, and that support supply chains in northern Ontario including mining operations, production and processing; mineral exploration and development; and mining supply and services that support supply chains in the mining industry including maintenance of operations, health and safety, are all considered ‘essential’.

This extends beyond mining companies, too, with Maestro Digital Mine one of the recent Ontario-based suppliers to confirm it was “deemed an essential service”. It said it would continue to provide support to the underground mining sector, “keeping miners safe with gas sensors and airflow sensors” during this time.