GOLD EXTRACTION

TECHNOLOGY DEVELOPMENTS
AND THEIR IMPLICATION TO
PROFITABILITY AND SUSTAINABILITY
By: C. A. Fleming
SGS LAKEFIELD RESEARCH

Lakefield Research

CUMULATIVE WORLD GOLD

PRODUCTION (TONS)
Total World
Production
110,000 tons

120,000
100,000

Cumulative
World
Production
(tons)

80,000
60,000
40,000

1490 - 1900
15,000 tons
35 t/y

1900-1970

20,000

60,000 tons
800 t/y

0
1850

1970-1992
35,000 tons
1,600 t/y

1875

1900

1925

1950

1975

2000

YEAR
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HISTORY OF THE
CYANIDATION PROCESS
Cyanidation process patented in 1887
First used:
Crown Mine, New Zealand

1889

Robinson Deep, S.Africa

1890

Consolidated Mercur, USA

1891

El Oro, Mexico

1900

La Belliere, France

1904

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HISTORY OF THE
CYANIDATION PROCESS
Increased gold recovery from <70%
to >90%
Vital for the development of the
South African gold industry, which
had low gold grades, very finely
disseminated in silica rock (gravity
recovery ~20%, cyanidation >95%)

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FLOWSHEET OF A MERRILL CROWE

GOLD PLANT (pre 1980)
Ore Stock Pile

Crushing

Leaching
(16-48 Hours)

Milling

Cyanide
Vacuum
Deaeration

Air

Zinc
Powder

Pregnant
Leach Liquor

Air

Wash

Clarification

Solid/Liquid
Separation
(CCD or Filter)
Tailings

Cementation

Filtration
Calcining

Smelting
Dore
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CUMULATIVE WORLD GOLD

PRODUCTION (TONS)
Total World
Production
110,000 tons

120,000
100,000

Cumulative
World
Production
(tons)

80,000
60,000
40,000

1490 - 1900
15,000 tons
35 t/y

1900-1970

20,000

60,000 tons
800 t/y

0
1850

1970-1992
35,000 tons
1,600 t/y

1875

1900

1925

1950

1975

2000

YEAR
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THE LAST THIRTY YEARS

Key changes
Gold extraction technology
Characteristics of gold ore bodies
The demographics of gold
production
The price of gold
Golds role in the market place
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ERA OF MAJOR TECHNICAL

DEVELOPMENT-1970-1990
Heap leaching
Activated carbon processes
Improved refractory ore
treatment processes:
Fluid bed roasting
Whole ore roasting
Pressure leaching
Biological oxidation
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HEAP LEACHING

Originally developed for leaching low-grade

uranium and base metal (copper) deposits.

Adapted for treatment of low-grade gold ores by

USBM in the 1970s.

Lime/cement agglomeration process developed

by USBM allowed crusher fines and high clay
ores to be treated.

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HEAP LEACHING

First large-scale gold heap leach at Carlin, Nevada, in

1970.

Integrated heap leach/carbon adsorption circuits

developed in the 1980s.

Gold recoveries generally only in the 50-80% range,

but cut-off grades lowered to <1 g/t.

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HEAP LEACHING
z

Higher grade (2-3 g/t) operations produce gold

for $50-100/oz.

Gold leached by cyanidation

Accounts for ~400 t (~16%) of mine production

Not suited to hard, impervious or refractory ores

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TYPICAL HEAP
LEACH OPERATION

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ACTIVATED CARBON
PROCESSES
CIP/CIL/CIC

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FLOWSHEET OF A MODERN
CIP GOLD PLANT (post 1980)
Ore Stock Pile

Crushing

Leaching
(16-48 Hours)

Milling

Cyanide
Carbon
Advance

Carbon
Reactivation

Carbon
Elution

Special
Treatment

Carbon
Fines

Dore
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Carbon
Acid
Wash

Pulp
Advance

4-8 CIP
Adsorption
Stages

Tailings

Gold
Eluate

Smelting

Electrowinning
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ADVANTAGES OF CIP/CIL
versus MERRILL-CROWE

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No solid-liquid separation step

-lower capex, opex
-better gold recovery

Insensitive to most impurities

Insensitive to cyanidation conditions
Mechanically robust process
Insensitive to process upsets
Versatile/able to treat most feed stocks

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HISTORICAL DEVELOPMENT
EARLY 1980s
z

At least 20 CIP plants built in South Africa, ranging in

capacity from 5000 to 2,000,000 tons per month, with feed
material ranging from whole ore to concentrates to
tailings.

Demonstrated that the process could be applied to almost

any feed, with lower capital and operating costs and
higher gold recovery than Merrill -Crowe.

Developed engineering know-how and new technology for

large-scale CIP.

Developed fundamental knowledge of adsorption, elution

and regeneration processes.

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HISTORICAL DEVELOPMENT
1980s, 1990s
Process spread rapidly through every gold producing
country in the world accounting for practically every
new gold plant in the last 25 years. More than 60% of
world gold production (~1800 tpa) is now by
CIP/CIL/CIC.

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CHANGING TRENDS IN WORLD

GOLD PRODUCTION (1970-1990)
1970
(1300 tons total)

1990
(2200 tons total)

80

Percentage
of World
Gold
Production
(%)

60

40

20

Merrill Crowe
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Refractory

Heap Leach

CIP/CIL/CIC
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MARKET FORCES
z

Gold price fixed, 1934-1968

Declining profitability and production, 1955-1970

Release of gold price from gold standard in 1968

Boom times in the industry, 1970-1985

Fantastic growth in USA, Canada, and Australia

versus declining production in RSA and USSR

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CHANGING LOCATION OF
WORLD GOLD PRODUCTION

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MARKET FORCES
z

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To a greater extent than at any time since

the 1960s, the price of gold today is a
function of supply and demand market
forces.
The volume of gold traded each year is
orders of magnitude greater than new mine
production.

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MARKET FORCES
The price of gold is fairly insensitive to global
political and economic factors such as:
z Political crises
z The threat of war
z Natural catastrophes
z The price of oil/energy
z The fear of inflation

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MARKET FORCES
Negative Influences on the
Gold Price in the 1990s
z

Political/economic stability in the first world

Central bank sales creating unnatural supply

Gold never truly disappears. Scrap recycling

contributes ~20% of supply

Gold mine production increased ~5% pa in the

1990s. It is now stable.

Hedging

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MARKET FORCES
Positive Influences on the
Gold Price in the 1990s
z

Developing countries (particularly India and China)

are becoming wealthier.

Gold production in South Africa and Russia

declining rapidly (1200t in 1970, ~600t in 2000)

Fabrication demand (jewelry, electronics) exceeds

production from gold mines by ~1000t per annum.

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THE NEGATIVE FORCES

ARE WINNING!
The gold price has trended
steadily downward
through the 1990s

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CONCLUSIONS
GLOBAL METALLURGICAL TRENDS
z

The primary gold production industry is in a crisis due to:

Declining gold prices (in local currencies)
Declining gold reserves in the ground
Increasing production cost

The cost of gold production will increase due to:

The need for deeper mining
Lower gold grades
More refractory mineralization
More stringent environmental, social and political
responsibilities

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CONCLUSIONS
GLOBAL METALLURGICAL TRENDS
z

New technology will make a limited impact in the

areas of:
Cyanide recovery
Alternative leaching chemistries
(thiosulphate, platsol)
In situ mining/processing
But will not arrest the trend of declining production.

Cyanide leaching and carbon adsorption will continue

as processes of choice in the 21st century.

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CONCLUSIONS
GLOBAL ENVIRONMENTAL/SOCIAL TRENDS
z

Despite its extreme toxicity, cyanide can be handled

very safely in operating plants and destroyed very
efficiently in tailings.

Despite this, the anti-cyanide lobby will gain

momentum around the world, and more countries will
ban its use in the years ahead.

Alternatives to cyanide exist, but they are not as

efficient as cyanide and also have many as yet
unanswered environmental issues to deal with.

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CONCLUSIONS
GLOBAL MARKET TRENDS
z

Gold production from primary sources has peaked at

2500-2800 tpa and will decline through the 21st century.

There will be further consolidation in the gold mining

industry, as mining companies seek to address the
metallurgical and environmental problems, while trying to
meet shareholder expectations.

Increasing proportions of gold supply will come from

recycling and central bank reserves (mining currently
supplies ~70% of demand).

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CONCLUSIONS
GLOBAL MARKET TRENDS
z

The price will increase in real terms as a result, but

will ultimately be dictated by peoples appetite for
gold jewelry, which takes 80-90% of supply.

This scenario could be upset by a collapse of the

US$ and a global flight from paper currencies to gold
- in which case the price of gold could increase
dramatically.

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