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By R. V. Hughes, J. N. Breston

Conclusions drawn by previous research workers with reSPect to the relation between Pressure gradients and/or velocity and oil recovery obtained by laboratory water flood tests have been in disagreement probably due to variable procedures and unnatural conditions and materials. The Bradford Laboratory of the Pennsylvania Grade Crude Oil Association as part of its secondary recovery research program has conducted nineteen water floods on two long cores of widely differing characteristics in an attempt to clarify this relationship and make it an aid in predicting flooding pressures in the field. Unlike previous research procedures the present experiments were conducted with the aim of duplicating field conditions as closely as possible by using long unextracted consolidated cores, a live crude, and natural brines for both flooding and, connate water content. Also, the pressure gradients and flooding velocities were representative of field conditions where similar sands were being flooded. Eleven floods on one core and eight floods on the other core showed increased recoveries and lower residual oil saturation with increased flood pressure gradients and flood velocities. A marked decrease in recovery was obtained from both cores at very low flood velocities. This pressure versus recovery relationship is shown to hold up to the point of water breakthrough and also up to the 100 and 1 produced water to oil ratio point. INTRODUCTION The possibility of water flooding oil sands was suggested by Carl1 of the Pennsylvania Geological Survey in 1880. It is not known when the practice was tried intentionally for the first time, but its beneficial effects were noted in the annual production rate of the Bradford field as early as 1907. The practice was illegal in Pennsylvania until 1921. Early water floods in the Bradford field usually consisted of shooting or splitting the casing secretly to permit subsurface waters to enter the producing sands under hydrostatic head. As it was noted that the benefits of water flooding seemed to be proportional to the quantity of water dumped into the well many also began to utilize surface sources after the practice became legal. It was probably during the middle 20's before many producers realized that the pressurehead of the water upon the producing sand determined the rate and quantity of water that would enter the sand. Hence, rate and quantity of production appeared to be a direct function of input pressures. By 1927 a few producers had ventured the installation of pressure pumps in order to increase water-input rates and production through the combination of hydrostatic and hydraulic pressures. The adoption of pressure flooding and the "five-spot" drilling pattern in the Bradford field were essentially simultaneous. Water-input pressures in 1930 seldom exceeded 300 p.s.i. at the well head or 1100 p.s.i. at the sand face. Since that time, water-flood producers in the Bradford-Allegany fields have gone to higher and higher pressure until today 600 p.s.i. at the well heads is called a low pressure flood. Many high pressure floods now operate at 1300-1400 p.s.i. at the well head. The limiting and advisable pressure at the sand face has been pronounced as that pressure just under what is required to lift the overburden or to cause formation parting: According to this rule any water flood operation utilizing well-head pressures nearly equal in pounds per sq. in. to 1.1 times the average depth in feet to the top of the producing sand would be considered as a high-pressure flood. Despite the higher pressure trends in the Bradford-Allegany field operations and the results of early laboratory water flooding research, the desirability and benefits of high input pressures are still questioned by many operators, particularly in midwestern water flood operations. The present paper recounts a series of 19 laboratory water floods using two long, consolidated cores of widely differing characteristics saturated with live crude and flooded with oil field brines in an effort to simulate field conditions under • various pressure gradients and flooding velocities. For both cores, higher recoveries and lower residual oil saturations were obtained at higher pressure gradients and flood velocities. This relationship is shown to hold up to the water breakthrough point and also up to the 100 to 1 produced water to oil ratio point.

Jan 1, 1949

By E. M. Norris

THE Western phosphate deposits extend over a large area in the Rocky Mountain region, comprising portions of south central Montana, southeastern Idaho, northeastern Utah, and southwestern Wyoming. A limited acreage of these deposits passed into private ownership prior to Dec. 9, 1908, at which time 7000 sq. mi. of land in these phosphate fields was withdrawn from public entry by direction of the Secretary of the Interior. Under the Act of Feb. 25, 1920 (41 Stat. 437) title to all phosphate lands in the public domain was reserved to the United States with provisions for leasing portions to citizens, corporations, states, etc. The above act, in effect, created by law a Western phosphate reserve of approximately 2,269,055 acres.

Jan 1, 1944

By HENRY M. HOWEL

1. Introduction.-The first part of this papers treats of the causes and the restraining of piping in steel ingots; the second& considers the causes and the restraining of -segregation; and the third proposes certain precautions in engineering specifications concerning these two defects. Into their causes I have looked carefully, with the purpose of arriving at rational methods of restraining them, and at efficient ways of detecting. and measuring the harm which they cause, so as to benefit the public by reducing this harm at once effectively and with the least expense to the manufacturer, and therefore in the end with the least expense to the consumer. In Part I., I infer that the pipe is chiefly due to what I, call the virtual expansion of the outer walls of the ingot in the early part of the freezing. I find that the upper and smooth-faced part of the pipe probably forms while the interior is still molten, but that the lower, steep, and crystal-faced part probably forms in metal which is already firm. Of the five causes which may co-operate to limit the depth of the pipe, I find that three-blow-holes, sagging, and the progress of freezing from below upwards-are usually effective. I find that the pipe may be lessened by casting (1) in wide ingots,; (2) in sand molds, especially if these are pre-heated (this is rarely expedient); (3) at the tops instead of at the bottom; (4) slowly; (5) and with the large end up; (6) by the use of a sinking-head or other means of retarding the cooling of the top; (7) by permitting blow-holes to form; and (8) by liquid compression.) Most of these I consider in some detail, and in particular I dwell on the advantages of casting with the large end up, and I propose certain administrative arrangements to permit this.

Mar 1, 1907

By Willard P. Ward

SOME TIME in the year 1874 or 1875, I conceived the idea that spiegeleisen might be made -in a blast furnace from ores that were not carbonates, and which did not contain both manganese and iron in the same ore. Up to this time, such ores had formed the basis of all the spiegel that had been produced; and all the ferromanganese that was on the market before 1875 was made in crucibles, and cost about 00 per ton, for 80 per cent. Mn. I consulted the great steel metallurgist of the day, Alexander Holley, who listened attentively to what I had to say, and told me he did not think my plan was practical, so I abandoned it for the time being. But I was so stubborn that I could not get the notion out of my head. It seemed to me that a good metallurgist should be able to work the thing out in some way. I had already had some experience in smelting refractory lead ores in Utah, and was young and not lacking in self confidence, so after waiting a bit, I got Anton Eilers, the best all-around metallurgist I knew, and J. H. Bramwell, the best iron blast-furnace man I knew, both intimate friends of -mine, to come to my place in Bartow County, Georgia, and look over things. They remained for several days, and made all the examination they thought necessary; and they also advised me to give up the project, and either to keep the furnace running on car-wheel iron or to blow it out. After my talk with Holley, I improved my plant in several ways. I closed the top of the furnace, put in a hot-blast stove, a steam boiler and a Weimer blowing-engine which gave me blast enough, at a pressure high enough for all the requirements of, the furnace, and which I could bring up to a temperature of 600° to 700° F.

Jan 1, 1921

By James R. Stuart

AS the available remaining properties of iron ore reserves on the Mesabi Range are opened up for mining, the various properties located under lake beds are brought nearer an active status. The actual physical problems involved in stripping these properties do not act as a deterrent so much as the legal and political problems that are encountered. When it is proposed to destroy a natural lake that has been used by the public for many years, much local as well as state opposition may be encountered regarding its destruction. Public hearings must be held and some adverse publicity is likely to result. The ownership of the ore under the lake and the rights of the abutting property owners must be settled, and protection from damage caused by a disturbance in surface and subsurface drainage is likely to be demanded by property owners some distance from the proposed mine area. The Embarrass Mine, located near Biwabik, Minn., falls into this classification. A portion of the orebody lies under what was formerly Syracuse Lake, this body of water having been removed in the process of stripping the mine. An additional problem in the case of a meandered body of water is the establishment of a meander line that can be projected downward as mining progresses to form the basis for a satisfactory division between lake bed and upland ore shipments for royalty purposes. Fig. 1 illustrates the complications encountered in maintaining these divisions. A balance point was agreed upon in the center of the lake to make an equable division of lake bed ore to the abutting properties. The entire lake bed has since been adjudged the property of Minnesota. Lake Characteristics Lake bed stripping problems with which this paper is concerned necessarily are limited to a specific type of lake, namely the glacial lakes of the Lake Superior region. One characteristic common to these bodies of water is a deposit of fine black mud or silt on the bottom, frequently underlain by a layer of impervious blue clay. This is also true of the muskeg areas of the region, which present almost identical problems as lakes in stripping. The actual removal of the water and the lake bed material is a routine matter more or less standardized as to equipment, and the period of time required can be estimated easily on the basis of volume and capacity. More important than the foregoing is the execution of preliminary work, and above all, the timing involved. An account could be prepared based entirely on statistical and cost data which would give a very fair picture of the time required and cash outlay needed to effect the removal of a body of water preliminary to stripping the orebody. However, the real interest from the standpoint of the operator and the engineer who carry responsibility for completion of the job lies in the unexpected emergencies and the action of various materials involved in the stripping when the balance has been upset through diversion of water courses and the reduction of the lake level. Runoff and Drainage Lakes are located in natural basins that catch all the rain water and runoff water for a considerable area. Where a lake is involved having an inlet and outlet or a sizeable water course running through it, the drainage area may include a watershed covering many square miles. All available data then must be collected to supply a history extending over as many years for which information can be gathered on the flow of streams, annual rain and snowfall, and most important, the peak flows to be expected. Where the diversion of a stream around the stripping area is a part of the problem, this last factor is of great importance since it controls the cross-section to be selected for the diversion channel and the volume to be removed in its excavation, as well as affecting the hydraulic considerations to be met in the design of the completed channel. Characteristic material in the overburden found at the Embarrass Mine is illustrated in Fig. 2. Well Pumping Pumping from the well holes was started well in advance of the draining of the lake. Fig. 3 shows a gradual lowering of the water table with no noticeable fluctuations during the period in which the lake was being dewatered. Unfortunately, because of tight ground, a maximum flow to the wells was not maintained. This retarded the rate at which the water table was reduced so that in the course of stripping the excavation soon extended below the water table, and the great bulk of the pumping was handled from a system of sumps in the pit itself. Any dewatering program projected by prepumping from wells, a glorified well point system, would have to be started well in advance of the stripping to be of any great advantage. Preliminary drainage of the surface over the mine area is entirely apart from the actual elimination of the lake bed itself. Since the lake is what is called a perched water table because of the impervious character of the lake bottom, the adjoining surface may be dewatered below the surface of the existing lake and the flow will not be affected by the proximity of that body of water. This condition actually has been demonstrated through the establishment of a number of observation holes where a small churn drill was used to put down the holes and a 3-in. pipe was installed for taking water level

Jan 1, 1952

By H. C. Hardison

The Yates pool, Pccos County, Texas, has greater potential capacities than any other field in the United States. This field is notable for the large return it yields on capital invested, for low production costs and for the orderly and conservative manner in which it was developed and continues to be operated. The proven area is 20,000 acres and there are 392 producing wells, or approximately 1 well to 50 acres. The theoretical daily potential is 5,250,000 bbl. as determined by l-hr. open-flow gages. Individual well gages vary from a few barrels to 8500 bbl. per hour, and well depths range from 1000 to 1800 ft. The greater part of the production is from a very porous limestone, and by agreement no productive well has penetrated the lime more than 225 ft. The forces driving the oil from the formation to the surface are hydrostatic head, expanding gas or a combination of the two. The degree of effectiveness of either depends upon the structural position of, and porosity encountered in, the individual wells. Approximately 95 per cent. of the wells in the field flow naturally. The pipe line outlet of the field at the present time is 100,000 bbl. per day, which is less than 2 per cent. of the daily potential. Difficulties and Principles of Probation It became evident during the first year of the development of this field that operators would have to devise a scheme to allocate pipe line runs equitably among their different properties. When the idea of proration was first inaugerated, the matter of spacing wells was given consideration. This was given up through fear of legal difficulties. Storage was also a question that was given considerable thought, and a plan was finally developed which went into effect Oct. 1, 1927. It was decided that the oil runs should be prorated according to the total potential capacity of all the wells which the several operators had in the field. The potential capacity of the wells was measured by a l-hr. open-flow gage. All runs to storage by an operator were deducted from his daily allowance.

Jan 1, 1931

By H. M. Chance

Jan 1, 1886

By Joseph Jensen

When the legal holders of Government permits in the Middle dome of Kettleman Hills entered into an agreement on May 27, 1929, to suspend all drilling activities on five permits, covering portions of the Kettleman Hills Middle dome, until Jan. 1, 1931, and the owners of fee lands contiguous thereto assured Secretary Ray Lyman Wilbur, of the Department of the Interior, that they too would respect a drilling suspension for a period of a little more than 19 months, none of these interested parties realized that this was the first step in a chain of events that would culminate, more than four years later, in the formation of the Middle Dome Corporation for the development of the Middle dome area in a unit plan that would be the first unit plan to be approved by the California Regional Producers Committee and recommended to the President as a satisfactory unit plan, under Section 7 of Article III of the Oil Code, approved Aug. 17, 1933. Neither did they realize that more than two million dollars would be spent before oil or gas would be successfully and continuously produced from wells drilled on that Middle dome area. On Oct. 1, 1933, under the terms of the Middle Dome Agreement, the Middle Dome Corporation assumes control of activities and is responsible for the division of all product's produced from the Middle dome area to members of the Middle Dome Corporation. This Middle dome plan is the second successful unit plan developed in California in the past three years, the first being the Kettleman North Dome Associationll formed under the agreement, of Jan. 31, 1931, for the unified operation and development of more than 12,000 acres of land on the North dome of the Kettleman Hills. All other unit plans discussed in the past four years in the state have not yet been completed, for one reason or another, but under Section 7 of Article 111 of the new Oil Code numerous plans of development, some of which may be unit plans, will be forthcoming within the next few months. There is much

Jan 1, 1934

By Thomas M. Drown

Theodore Dehon Rand was appointed Treasurer of the American Institute of Mining Engineers by the Council, at the Boston meeting of February, 1873, to fill a vacancy caused by the resignation of the treasurer who had been elected at the first meeting in Wilkes-Barre in May, 1871. He was elected by the Institute to this offce in the following May, and yearly thereafter until 1903. He often alluded with amusement to the abrupt way in which he was injected into this position, by my coming to his office and asking him to accept the appointment as Treasurer, on the ground that he was eminently fitted for the position by reason of his legal and business knowledge, his interest in geology and mineralogy, and more particularly because he was a neighbor of the person (to wit, myself) who was slated for the Secretaryship, and they could thus convenient.ly confer on Institute matters. He consented, on condition that the duties should not involve too.much additional work for him. This assurance was easily given, for the Institute then

Jan 1, 1904

By A. M. Beebee

IN the present century the coal and manufactured gas industries have been eclipsed in public interest by oil, natural gas, and hydro- electric energy, which have had the benefit of rapid development and novelty. I sometimes wish that our social- order were such that hydro power had been developed first, that the use of gas from coal had never been seriously considered, and that our domestic energy requirements were supplied by other fuels. Sup- pose the manufacture of gas from coal should then come on the scene at the present time with the current plight of the railroads, coal regions, and labor generally, presenting the fact that it could increase the amount of coal mined and shipped by the railroads by some 16,000,000 tons, and increase the coal used at existing u plants five times. Imagine the great public interest that would be manifested; it would supply the cooking and water-heating requirements of a community with a superior character of service at a cost to the customer approximately half that which had obtained previously. Would not such a situation be heralded as the salvation of our country and all help be given it?

Jan 1, 1940

By C. A. Hartnagel

The year 1944 marks the eightieth anniversary of the discovery of petroleum by drilling in New York State. It was in 1864 that a half dozen shallow wells were drilled at Limestone in Cattaraugus County, in a region that now forms the northern extension of the 82,000-acre Bradford pool. These early wells found oil, but not in paying quantities. They did, however, attract attention to the district and were a factor in the development of the still active Bradford pool of Pennsylvania and New York. During 1943, the production of petroleum in New York amounted to 5,029,000 bbl. This represents a decrease over the previous year, in which 5,421,000 bbl. was produced. The flush production for the New York fields occurred in the early eighties shortly after the discovery of oil in the Richburg pool of Allegany County. During the flush period, production was in excess of five million barrels annually. By 1887, however, the output had decreased to an amount only slightly more than two million barrels, and through the early years of the present century the annual total was often less than one million barrels. Flooding of the oil sands for increasing productioil was made legal in 1919, and in 1927 the output once more reached the two million mark. Two years later it had increased to over three million barrels. In Table r is shown production since 1935, in which year for the first time the output under flooding methods was in excess of four million barrels. From this table, it is evident that oil production in New 'I'ork is rather well stabilized, and since most of the oil is obtained by the flooding, or water-drive, method, with little or no prospect of discovery of new oil territory, rapid changes in yield from year to year are not to be expected. In thickness, the oil sands have a maximum of about 50 ft., and by means oi flooding may produce 10 to 12 thousand barrels an acre and proportional amounts for thinner sands. In some cases, floods have been developed in sands only 12 ft. thick. Under good flooding conditions a yield of 2000 bbl. an acre is about the lower limit at which oil can bc produced at the present price of $3.00 a barrel. The average cost for the physical development ol a lease, not including the cost ol the lease itself, is $5000 an acre. Since several months must intervene before the flood begins to act on the oil wells, and a year or more is required to bring thc wells to maximum daily production, it is evident that a considerable interval occurs before maximum returns are realized. Once a flood is developed and the wells

Jan 1, 1944

By C. A. Hartnagel

The year 1944 marks the eightieth anniversary of the discovery of petroleum by drilling in New York State. It was in 1864 that a half dozen shallow wells were drilled at Limestone in Cattaraugus County, in a region that now forms the northern extension of the 82,000-acre Bradford pool. These early wells found oil, but not in paying quantities. They did, however, attract attention to the district and were a factor in the development of the still active Bradford pool of Pennsylvania and New York. During 1943, the production of petroleum in New York amounted to 5,029,000 bbl. This represents a decrease over the previous year, in which 5,421,000 bbl. was produced. The flush production for the New York fields occurred in the early eighties shortly after the discovery of oil in the Richburg pool of Allegany County. During the flush period, production was in excess of five million barrels annually. By 1887, however, the output had decreased to an amount only slightly more than two million barrels, and through the early years of the present century the annual total was often less than one million barrels. Flooding of the oil sands for increasing productioil was made legal in 1919, and in 1927 the output once more reached the two million mark. Two years later it had increased to over three million barrels. In Table r is shown production since 1935, in which year for the first time the output under flooding methods was in excess of four million barrels. From this table, it is evident that oil production in New 'I'ork is rather well stabilized, and since most of the oil is obtained by the flooding, or water-drive, method, with little or no prospect of discovery of new oil territory, rapid changes in yield from year to year are not to be expected. In thickness, the oil sands have a maximum of about 50 ft., and by means oi flooding may produce 10 to 12 thousand barrels an acre and proportional amounts for thinner sands. In some cases, floods have been developed in sands only 12 ft. thick. Under good flooding conditions a yield of 2000 bbl. an acre is about the lower limit at which oil can bc produced at the present price of $3.00 a barrel. The average cost for the physical development ol a lease, not including the cost ol the lease itself, is $5000 an acre. Since several months must intervene before the flood begins to act on the oil wells, and a year or more is required to bring thc wells to maximum daily production, it is evident that a considerable interval occurs before maximum returns are realized. Once a flood is developed and the wells

Jan 1, 1944

By Richard H. Mote, W. C. Schroeder

The endlessly changing pattern of mineral supply and demand offers opportunity to the alert and can bring disaster to the unwary. The discovery of ore bodies, the invention of extractive processes, the provision of new transport facilities, the political stabilization of underdeveloped areas, and many other changes can increase supply dramatically. Such new outpourings of mineral wealth from ore bodies bring fortunes to their developers, and consumers frequently find their competitive positions decidedly improved by new and cheap sources of supply. On the other hand, operators of marginal properties can find competition from newly opened high-grade mines intolerable. Consumers that have depended on the products of nearby, high-cost mines may find new, remote, low-cost supplies advantageous only to their competitors. The invention of new prospecting methods can have spectacular effects. Shortly after World War I the discovery rate of petroleum pools began to decline. The leading prospecting technique of that day, the projection downward of surface reflections of geologic structure, was proving less rewarding. Prophets foretold an oil shortage in the near future. But at that very moment scientists were perfecting the application of seismic waves to reveal underground oil-bearing geologic structures. As these geophysical methods were put into commercial use the whole outlook changed-the problem of the 1930's became how to cope with the surplus from discovery, not how to meet the ever rising demand. Many lead mines were being abandoned as unprofitable about this same time because the penalties charged by smelters for the zinc in the ores and concentrates more than counterbalanced the payments for lead and silver. Then selective flotation (at the time called differential flotation) appeared,

Jan 1, 1959

Jan 1, 1962

One session of the annual meeting of the American Society of Civil Engineers-the first since this society became a Founder society with representation on the Board of the United Engineering Society-was held on Jan. 17, 1917, in the Engineering Societies' Building. Mr. Charles F. Rand, Past-President of this Institute, and President of the United Engineering Society, welcomed the new Founder society in the following words: "As one who has looked forward very earnestly to this clay, and who has made a modest effort in favor of the new arrangements, it is a peculiar satisfaction to be the representative of the Trustees of the United Engineering Society and to welcome you on the occasion of your first meeting in this building in which you now own' a quarter interest. "'As this is your annual meeting, I cannot take your time for extended remarks, yet it seems proper that I should call attention to a few facts respecting the United Engineering Society, with which you are now identified. "The United Engineering Society exists for the purpose of holding the legal title to certain of the property of the societies of Civil, Mining, Mechanical and Electrical Engineers and to act for them in certain matters. "The value of its property, including real estate, the Library and the Reserve and Endowment funds, exceeds two million dollars, all free and clear. "The total membership of the four Founder societies is 29,000 and the membership of associate societies is 23,000, making a grand total of 52,000 engineers who now have headquarters in this building.

Jan 3, 1917

By Jan Visman, S. J. Aresco

INTRODUCTION The accurate sampling of coal, as with most minerals, is a difficult task. Coal is a heterogeneous material made up of different types of coal and varying amounts of mineral matter. The product as mined may contain all the layers of coal and impurities found in the seam as well as portions of the stratas above and below the coal seam. The preparation plant is the device to size, crush, and/or remove impurities so the coal may be shipped as a salable product. Sampling may be needed at many stages in the preparation process. Although this chapter is primarily concerned with sampling in connection with preparation processes, the principles apply to all coal sampling. The main reasons for sampling in connection with coal preparation are: 1) To determine the washability characteristics of the raw coal by means of float and sink tests. These may be used for the design of a preparation plant, prediction of results to be obtained, or monitoring raw coal delivered to the plant. 2) To check the performance of various operating units in the plant, either by float. and sink tests or chemical analyses. 3) To determine the analytical characteristics of the products produced, such as moisture, ash, Btu, sulfur, etc. HISTORY The earliest accepted methods of sampling coal in the United States were given in US Bureau of Mines (USBM) publications by J. A. Holmes,l G. S. Pope,2 and A. C. Fieldner.3 The American Society for Testing and Materials (ASTM) more or less adopted the methods proposed by USBM in their Standard D-21-1916 and it remained a standard for many years. Briefly, this standard called for a 500 lb (227 kg) sample for coals less than 94 in. (19 mm) in size and a 1000 lb (454 kg) sample for all coals over 94 in. (19 mm) in size. No mention was made of increments, but there was an instruction that the sample should spread over the coal

Jan 1, 1979

By B. F. Tillson, C. M. Haight

I. General Remarks..........................723 1. Location............................723 2. Characteristics of the Orebody..................725 (a) Mineralogical (b) Shape, Strike, Dip, Size, Etc. (1) Ore (2) Country Rock 3. Historical Sketch........................725 11. Mining Method..........................726 1. Outline of Methods Now in Operation............... 726 (a) Stopes (b) Fill . (c) Pillars (d) Slices (e) Transportation (f) Miscellaneous 111. Mining Operations........................727 1. Shaft..............................727 (a) Sinking (b) Dimensions and Equipment, Sketches (1) Size, Inclination. Direction, Etc. (2) Timbering (3) Stations (4) Track (5) Hoisting Equipment (a) Skips (b) Engines and Ropes (c) Idlers (d) Man Cars (6) Loading Pockets (a) Operating Figures (7) Headframe

Jan 1, 1918

By James H. Boettcher

INTRODUCTION There are many and varied sources of finance available to the mining industry for exploration, development and/or the operation of mining projects and companies. These sources include equity from major as well as "penny" stock exchanges, precious metal mutual funds, private investor groups (from "grubstakes" to tax-oriented limited partnerships) and banks. The variety is representative of the fact that the world's capital markets are segmented and stratified according to risk-reward characteristics. This interrelationship is summarized in Exhibit I and 2 which relate (very approximately) various sources of finance to a typical mining project's life cycle and risk-return characteristics. The objective of this paper is to introduce, as it applies to the mining industry, a somewhat recent phenomenon represented by one of these capital markets segments referred to as "venture capital." Venture capital investing per se, which today is a multibillion dollars per annum investment business, goes back as far as Queen Isabela's backing of Columbus' "wild ideas." The real institutionalization of the venture capital process really began in earnest, however, after World War II. Today over 700 private venture capital sources (and more government related ones) exist providing funding to a range of industries, but typically related to the "high-tech" business. The table to the right shows industries financed by venture capital funds between 1980 and 1982. Conspicuous by its absence is, of course, mining which is not a great surprise since typical mining projects up until recently were large, required long lead times and were undertaken by established mining houses. Also, as most of you can appreciate, successful investing in the mining business requires a great deal of experience and understanding of the industry which most venture capital funds do not have. TARGETED RETURN The rate of return objective of most venture capital funds is, according to the legalized version, to realize a return which is "substantially in excess of that obtainable through conventional equity investments." One may say that a common objective of venture capital funds is to realize a 20% to 30% compound annual internal rate of return on capital over their life which is often ten years. [ ] This objective has been recently more feasible in the mining sector due to the development of smaller precious metal projects which cost less and are quicker to generate cash flow than the behemoth projects of the 1970s. In addition to precious metals, venture capitalists have invested or looked at a variety of other mining projects including ones as prosaic as a high margin "kitty litter" operation, sand-gravel and other industrial minerals operations, the leveraged buyouts of coal mines or mineral divisions of major energy or mining corporations, and even in in-situ copper or gold leaching ventures. A typical investment is in the range of $100,000 to $3,000,000 although some can go as high as 5,000,000. This implies a project size up to, say, 30,000,000 if a venture capital fund does it on its own. Larger projects can be done if the equity portion of the investment is syndicated with other investors.

Jan 1, 1985

By A. W. Fahrenwald

FLOTATION practice in Idaho is now about 13 years old. The advance has been steady during these 13 years. The operators have been alert to take advantage of the newest developments and they have themselves made a constant effort to improve their work. The metallurgical improvements are due to the development of (1) better equipment, (2) better reagents, and (3) better understanding and control of the process. During the eight years the writer has been in this district, there has been continuous experimentation by several companies to improve the ore dressing by flotation methods. Gravity concentration has fought hard to hold its place, and although it is true that gravity processes have been improved during this period, nevertheless, in several of the important mills of the district the few tables that managed to hang on have finally given way. On the straight-lead ores, tables and jigs are still used; and, due to better classification, their hold on this job has been strengthened. ORES OF THE DISTRICT The ores of the district are of two general classes: (1) clean lead ores, such as those from the Bunker Hill and Hecla mines, and (2) complex lead-zinc ores. The general impression prevails that the clean lead ores, class 1, are simple and that it is easy to obtain high recoveries and good grade products. This, in a way, is a false impression; there is quite a high percentage of locked middling in these ores at 100 and 150-mesh sizes. Improved classification preparatory to table treatment of this type of ore has made it possible to segregate effectively a high-grade middling which is further comminuted and floated. The complex lead-zinc ores of the district, of which the ore from the Morning mine of the Federal Mining & Smelting Co. is a typical example, always have presented a difficult problem. It always has been comparatively easy to make a clean lead concentrate, but it never has been possible to concentrate sphalerite with a-specific gravity of 4.10 from siderite of gravity 3.88. Also, a large percentage of the galena and sphalerite of this class of ore refuses to separate out until the crushing has been carried

Jan 1, 1928

By Peter J. Maxworthy

INTRODUCTION There is no hard and fast rule on whether functions within a company, diversified or otherwise, should be strongly centralized or decentralized. In all diverse organizations, there are certain basic functions which remain common (or central) to each element of the business, viz: Personnel Management Cash Management Taxation Management Legal Planning Accounting Standards It would follow that each of these common factors requires some supervision at a central level to ensure that overall group objectives are met. It is true that other functions including: Industrial Relations Marketing and Distribution Production Research and Development Purchasing Management Accounting may also be common to each element of the organization. However, there is far less commonality in the degree to which these functions are central to the efficient performance and financial well-being of the business. Role of Operating Units The resources of operating centers may be viewed as a bank of funds, the nature of which can be changed from time to time, but the employment of which must provide for ongoing increases in the net worth of the total enterprise expressed in terms of market values. Operating units are required to continually review products, methods, and opportunities and to monitor avenues for incremental investment--all with a view to attaining the necessary additive net present value of future cash flows of the enterprise. Operating units should be permitted sufficient autonomy to enable the best use to be made of the skills and experience of the people it employs in order to produce a return appropriate to the value of assets employed. Role of Head Office The head office will typically comprise a specialist group--the leaner the better if one strongly adopts the decentralist approach--often acting as Service Centers but also performing a control function in the corporate sense. The head office function is a cost center. It may be instrumental in developing strategies for increasing revenues or reducing costs on a group scale, but it does not generate revenue. Every dollar spent on this function is an extra dollar to be generated by the operating centers in order to achieve an increase in corporate wealth. TREASURY MANAGEMENT Treasury management is concerned with the provision of finance, cash-flow management, and risk analysis. Each decision taken within the enterprise has a cash implication. It follows that a well-integrated central Treasury function can, in all likelihood, produce economic benefits. The degree to which the function should be centralized depends largely upon the unique nature of the operating units it is servicing. Levels of ownership, the calibre of unit operating managers, and the nature and geographic distribution of the business are all factors determining the degree to which the Treasury function is centralized. In the case of Peko-Wallsend, the Treasury Department is small, comprising four people. While divisional cash-flow management is largely decentralized, Treasury is responsible for the daily management of funds surplus to the immediate needs of operating units. Treasury also operates as central banker and provides funds to

Jan 1, 1985